N-CSR 1 a51662.htm AQUILA MUNICPAL TRUST 03-31-24 FORM N-CSR ANNUAL REPORT

 

 



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 811-4503


Aquila Municipal Trust

(Exact name of Registrant as specified in charter)


120 West 45th Street, Suite 3600

New York, New York 10036

(Address of principal executive offices) (Zip code)


Joseph P. DiMaggio

120 West 45th Street, Suite 3600

New York, New York 10036

(Name and address of agent for service)


Registrant's telephone number, including area code:
(212) 697-6666


Date of fiscal year end: 3/31/24


Date of reporting period: 3/31/24


FORM N-CSR


 


 
 
 

 

ITEM 1. REPORTS TO STOCKHOLDERS.

 

                                                   
 
     

 

 

 

 

 

 

Annual Report

March 31, 2024

 

 

 

 

 

 

Aquila Tax-Free Trust of Arizona
Aquila Tax-Free Fund of Colorado
Aquila Churchill Tax-Free Fund of Kentucky
Aquila Tax-Free Trust of Oregon
Aquila Narragansett Tax-Free Income Fund
Aquila Tax-Free Fund For Utah

 

 

 

 

 

 

 
 

 

 

 

 
 
 

 

 

Aquila Municipal Trust

Assessing the Current Environment and
Preparing for What May Lie Ahead

  
     

 

May, 2024

Dear Fellow Shareholder:

One of the primary characteristics of fixed income investments, including municipal bonds, is an inherent dependency on certain market conditions. Perhaps chief among them is the direction of interest rates, which results in a direct, inverse relationship between bond yields and valuations. Although expected, this yield/valuation dynamic has been further influenced by mounting uncertainty regarding interest rates and federal monetary policy for the year ahead. The Federal Reserve (the “Fed”), which previously signaled a series of rate cuts in 2024, has instead adopted a wait-and-see approach — suggesting that interest rates may remain “higher for longer.” In the process, bond yields have generally remained elevated, offering income-oriented investors attractive yield opportunities. On the other hand, investors focused on bond valuations remain skittish about their principal investments.

Current market conditions, thus, beg the questions: Will the Fed decide to cut interest rates in 2024? How might bond yields and valuations be affected going forward? While no one has a crystal ball, of course, we believe it’s important to understand the current environment and prepare for what may lie ahead.

Potential Implications for Municipal Bonds

Municipal securities generally began the year on a positive note, continuing the strong rally that occurred toward the end of 2023. However, as the first quarter unfolded, bond valuations gave way to a prevailing increase in yields that swept across fixed income markets. Overall, municipal bonds performed respectably on a relative basis, especially considering a significant amount of volatility among many fixed income asset classes, including U.S. Treasury securities. In addition to enduring interest rate volatility, U.S. Treasuries have continued to experience an inversion of the yield curve. The municipal yield curve has also experienced somewhat of an aberration, taking on an atypical “ladle” shape. Much of these conditions have come amid continued uncertainty about the direction of interest rates, and as investors appeared to gravitate toward shorter-term durations and investment alternatives.

As referenced above, short-term interest rates are largely driven by the monetary policy adopted by the Federal Reserve. A rather striking strategic change by the Fed in recent months has introduced added uncertainty for financial markets. For instance,

 

 

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at the Federal Open Market Committee (“FOMC”) meeting in December 2023, the Fed indicated that it was prepared to begin implementing a series of rate cuts during the coming year. And this stance was reiterated as recently as the FOMC meeting in March. However, citing stubborn inflation and stronger-than-expected economic data, the Fed instead elected to again hold rates steady and maintain the overnight federal funds rate (the rate that banks charge each other to borrow or lend excess reserves overnight) at its target range of 5.25% to 5.5%. In fact, the FOMC in May marked the sixth consecutive meeting that the Fed chose to leave rates unchanged, which kept the federal funds rate at its highest level in more than two decades.

Federal Reserve Chair Jerome Powell stated that he doesn’t anticipate the Fed cutting interest rates until it is confident inflation is moving sustainably downward. Mr. Powell added that gaining such confidence will likely take longer than previously expected, and that any further decisions regarding monetary policy will be considered on a meeting-by-meeting basis. Therefore, financial markets have pivoted and are prepared for what appears may be a period of persistently higher interest rates.

In terms of key economic drivers, inflation (as measured by the Consumer Price Index) has fallen significantly from its most recent peak of 9.1%, yet remains more than a percentage point above the Fed’s target rate of 2%. Lingering inflation continues to have its effects on various aspects of the economy and does not go unnoticed by market observers. Meanwhile, the labor force has remained strong and remains one of the bright spots for the U.S. economy. According to Bureau of Labor statistics in March, the labor participation rate rose to 62.7%, while the unemployment rate dropped to 3.8%, bringing unemployment to its lowest level in nearly 50 years.

So, what does this mean for fixed income investors? Financial markets continue to take it all in and react accordingly. The current environment is clearly indicative of just how dependent fixed income investments, including municipal bonds, are to changing market conditions. Whereas the markets had been prepared for potential interest rate reductions, they are now bracing for what could be a period of “higher for longer” rates — and with it, potential uncertainty.

Assessing the Road Ahead

The economic backdrop seems to be plotting the roadmap for fixed income investments for the time being. Heightened market sensitivity to key economic data may continue in the interim, which could further contribute to uncertainty and volatility across fixed income asset classes. As noted above, this backdrop has allowed the Federal Reserve to be patient with its monetary strategy and overall approach to managing interest rates. Predictions for interest rate reductions in 2024 have changed and continue to vary among market pundits. Talk of as many as six rate cuts has muted to possibly three, or perhaps only one, if any. And the timing of any possible action is very much dependent on forthcoming economic indicators. One thing is for sure: Until such time, both the Federal Reserve and investors alike will be closely monitoring what transpires.

 

 

 

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Coinciding with a recent rise in bond yields, issuance of new municipal bonds has continued to increase nationally. Municipalities appear to be more confident bringing new issues to market, as demand for municipal bonds remains relatively high. During the first quarter of 2024, new issuance totaled $95 billion — a year-over-year increase of 19.5%, according to Bloomberg. This is an encouraging sign for municipalities, and for the municipal bond market overall.

Another positive development for municipal bonds is improving credit fundamentals. According to S&P Global Ratings and Fitch Ratings, municipal credit rating upgrades far outweighed downgrades during the first quarter of 2024. Municipal credits have continued to benefit from federal pandemic aid, along with strong tax revenue collections, which has helped maintain healthy fiscal budgets and cash reserves, in many cases.

No market scenario would be complete without the possibility of other influencing factors. The unfortunate geopolitical tensions and potential for escalation abroad pose a lingering threat to global financial markets. And domestically, the presidential election cycle presents an additional consideration as we progress in 2024 and beyond.

Regardless of these and other macro market forces, we believe that with changing market conditions come opportunities. That’s why we also believe in the importance of maintaining a disciplined, long-term approach to investing.

Remain Focused on Your Long-Term Investment Goals

At Aquila Group of Funds, we remain optimistic for the municipal bond market — and for the role that mutual funds play in helping investors achieve their long-term financial goals. Municipal bonds are vital to financing the infrastructure of states and local communities. Moreover, they may play an important role in an investor’s asset allocation strategy. We, therefore, believe it’s important to keep in mind the key benefits that municipal bond funds offer, particularly during periods of market change and uncertainty. We feel it’s critical to stay true to one’s investment objectives, time horizon and risk tolerance. And, we encourage you to consult with a financial professional to ensure your investment portfolio is aligned with your individual, long-term financial goals.

As was recently announced, the mutual funds within Aquila Municipal Trust are expected to be reorganized under the terms of a definitive agreement with New York Life Investment Management LLC. The funds’ Board of Trustees believes the proposed reorganizations are in the best interests of each fund and its shareholders. For more details, please refer to the Supplement dated March 12, 2024 to your Funds’ Summary Prospectus, Prospectus and Statement of Additional Information (which was sent to all shareholders and is available at www.AquilaFunds.com).

 

 

 

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I would like to take this opportunity to personally express my deepest thanks and appreciation to you, my fellow shareholders, for your longstanding dedication and support. Since Aquila Management Corporation’s founding in 1984, we have remained steadfast in the commitment to our valued shareholders, associates, financial partners and everyone responsible for our mutual success throughout these many years.

Thank you as always for choosing to invest with Aquila Group of Funds.

 

  Sincerely,  
   
   
  Diana P. Herrmann, Vice Chair and President  

 

 

                                                                                  

 

Any information in this Shareholder Letter regarding market or economic trends or the factors influencing the Fund’s historical or future performance are statements of opinion as of the date of this report. These statements should not be relied upon for any other purposes. Past performance is no guarantee of future results, and there is no guarantee that any market forecasts discussed will be realized.

 

 

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Aquila Municipal Trust

ANNUAL REPORT

Management Discussion

  
     

 

Introduction

The Aquila Group of Funds (“AGOF”) single state municipal bond funds have consistently maintained a high quality, intermediate fund strategy that is designed to help mitigate interest rate volatility. During the annual reporting period of April 1, 2023 through March 31, 2024, the Federal Reserve (the “Fed”) dramatically slowed its pace of hikes in the Federal Funds rate (the interest rate at which commercial banks lend money to each other overnight) to two times, making its latest 0.25% hike in July 2023. However, the economic outlook is uncertain and the Fed’s fight with inflation does not appear to be over. We believe there will continue to be strong interest regarding how the Fed responds to the economic conditions facing the United States and that this theme will persist through 2024, if not longer. It is worth noting that the Fed does not sit idly during election years. Since 1980, the Fed has either hiked or cut rates in every single election year except 2012. These periods can introduce valuable opportunities to leverage our demonstrated active management techniques with a focus on intermediate maturity, broadly diversified, high quality, tax-exempt municipal bond portfolios.

U.S. Economy

While the markets have rebounded from 2022, the U.S. economy continues to perform well and has shown few signs of abating to date. Even with the Federal Reserve’s reluctance to cut interest rates because of stubborn inflation, markets have taken that as a sign of continued growth. This was demonstrated between the fourth quarter of 2023 and first quarter of 2024, where markets had anticipated as many as eight rate cuts. By the middle of January 2024, this forecast was reversed and by the end of the first quarter of 2024; as of this writing, the prediction is currently targeting two rate cuts to be implemented in 2024. Thus, inflation, and how the Federal Reserve responds, remain the key macroeconomic topics moving forward.

In July of last year, the Fed raised the range for its benchmark lending rate to a 23-year high of 5.25% – 5.50%, and has maintained this range for each successive meeting. However, despite substantial easing, inflation remains stubbornly above the Fed’s 2% target level. While U.S. consumer inflation has been slowing since peaking in 2022, it has crept higher in recent months. Over the past year, annual inflation, as measured by the Personal Consumption Expenditures (“PCE”), has decreased by 2.9 percentage points from February 2023 to February 2024. However, headline PCE was still 2.5% for February 2024, well above the Fed’s target level, leading to speculation and volatility as investors continue to debate when the Fed will implement its first rate cut.

 

 

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MANAGEMENT DISCUSSION (continued)

 

Furthermore, despite the Fed’s interest rate increases in 2022 and 2023, the labor market has remained remarkably strong. March 2024 payroll data from the Bureau of Labor Statistics indicated that U.S. payrolls rose by the most in nearly a year, with employers adding 303,000 workers to non-farm payrolls. Furthermore, over the past year, the labor force participation rate increased from 62.6% in March of 2023 to 62.7% in March 2024. The March 2024 payroll report strengthens the argument being made that interest rates remain higher-for-longer. Although the Fed has previously indicated they plan to cut interest rates later this year, they appear to be in no real hurry given recent economic strength. Strong economic data, in terms of consumer spending and real Gross Domestic Product growth, raise the possibility of inflation persisting in the quarters ahead.

Municipal Market

The municipal market followed the volatile U.S. Treasury market over the fiscal year ending March 31, 2024. The Federal Reserve tightening policy moved the 10-year AAA municipal yield of 2.27% on March 31, 2023 to a yield of 3.61% on October 31, 2023. At that time, the market was anticipating Federal Reserve rate accommodation which spurred a rally in the municipal market that topped out in late December 2023, with the 10-year AAA Municipal Yield at 2.28%. Given inflation has not subsided, as many economists and the Federal Reserve board members believed it would, the 10-year AAA Municipal Yield ended the fiscal year on March 31, 2024 at a yield of 2.51%.

As a relative indicator, the 10-year U.S. Treasury vs. the AAA Municipal Yield Ratio began the fiscal year on March 31, 2023 at 64.90%. The ratio increased to 74.10% as of October 31, 2023. As of fiscal year-end, March 31, 2024, the ratio decreased to 59.80%, which is a very low ratio historically and helpful in identifying demand for tax-free income.

The overall municipal bond market experienced positive performance relative to the taxable market, as measured by the Bloomberg Municipal Bond Total Return Index Value Unhedged. The broader tax-exempt market returned +6.40% for the 1-year period at the end of 2023, outperforming the Bloomberg U.S. Agg Total Return Index Value Unhedged which returned +5.28%. While these returns were not as impressive as the S&P 500 Index which returned 26.25% as of year-end 2023, what remains interesting to note is the continued multi-year correlation between the equity and fixed income markets. Despite the continued tightening of monetary policy and the Fed pausing as inflation began to settle down, U.S. Treasury yields as a percentage of municipal bond yields remained at historically low levels (mid 50% range) for most of the year, through the end of 2023. Longer maturity municipal bonds moved toward the lower end of the historical range (low to mid-80%). Despite higher than normal issuance at the start of 2024, municipal bond spreads remained tight.

Total municipal issuance for calendar year 2023 slid 2.9%, as reported by The Bond Buyer, which ostensibly helped push the 10-year U.S. Treasury vs. the AAA Municipal Yield Ratio cited above to the lower end of the historical range. A reversal of municipal new issuance, over the first calendar quarter 2024, rising +23.8% over

 

 

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MANAGEMENT DISCUSSION (continued)

 

the calendar year 2023, this increase in issuance should help normalize the ratio closer to the 5-year mean of 83.03%. Issuance is projected to be $20 billion higher in 2024 than 2023.

We expect increased borrowing for infrastructure and other municipal spending at higher interest rates will begin to be felt in municipal budgets over the next few years. Borrowing capacities may also be stretched and certain projects may need to be cut back, postponed or perhaps even cancelled. Prioritizing and rationalizing budgets could likely be a necessary component, particularly as we enter the throes of the upcoming election season.

Aquila Tax-Free Trust of Arizona

Arizona State Economy

During the reporting period ending March 31, 2024, the Arizona economy exhibited strong growth with a somewhat moderating undertone. This comes on the heels of recent years of economic development announcements around sizeable capital investments in the State’s manufacturing and high tech industries.

The State’s unemployment rate in March 2024 was 3.8% and in line with the national rate of 3.8%. Arizona improved slightly over the past year compared to the national economy, as it rose 0.2% year-over-year compared to the 0.3% increase for the same period in the national unemployment rate. Job growth for the 12-month period ending March 2024 came in at 2.2%, with a total increase of 70,300 jobs. Along with continued population growth, Arizona’s labor force continues to expand as well, with over a year of growth of 2.0%.

The median home price in Maricopa County rose to $470,000 in January 2024, which was an increase of 7.9% compared to a year earlier. The housing market in Arizona has demonstrated remarkable resilience despite the higher mortgage rate environment compared to two years ago. Arizona home price values and valuations remain attractive compared to those of many regions, such as California and the Northeast from which Arizona is attracting new population and homebuyers. This has helped support the pace of home buying in the State.

Aquila Tax-Free Trust of Arizona Performance:

      March 31, 2024
1-Year Total Return
  Class A Share (without sales charge)   1.91%
  Class Y Share   2.06%
  Bloomberg Municipal Bond Quality Intermediate Index   2.05%

 

 

Aquila Tax-Free Trust of Arizona Portfolio Characteristics:

      March 31, 2023   March 31, 2024
  Weighted Average Maturity   8.13 yrs.   9.27 yrs.
  Option Adj. (Effective) Duration   5.08 yrs.   5.18 yrs.
  Modified Duration   4.39 yrs.   4.66 yrs.

 

 

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MANAGEMENT DISCUSSION (continued)

 

Bloomberg Municipal Bond Quality Intermediate Index Characteristics:

      March 31, 2023   March 31, 2024
  Weighted Average Maturity   6.46 yrs.   6.58 yrs.
  Option Adj. (Effective) Duration   4.00 yrs.   3.99 yrs.
  Modified Duration   3.80 yrs.   3.91 yrs.

 

The Aquila Tax-Free Trust of Arizona (the “Fund”) Class A Share total return underperformed the Bloomberg Municipal Bond Quality Intermediate Index (the “Index”) of 2.05%, while the Fund’s Y Class Share total return of 2.06% slightly exceeded the Index return. (Note: the Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state-specific bond market performance.)

The slightly longer maturity and duration position of the Fund contributed to Class A Share underperformance compared to the Index. However, the Index is comprised of a narrower, and more concentrated, maturity exposure than that of the Fund. Part of our approach to pursuing an average intermediate maturity and duration is to combine a more broadly diversified range of maturities across the yield curve with a goal to avoid concentrating in overpriced areas and seeking to ensure there is exposure to areas that may be undervalued.

Outlook and Strategy

Throughout the reporting period ending March 31, 2024, we maintained what we believe to have been a fairly neutral interest rate risk stance while responding opportunistically in periods of market fluctuations. Average final maturity ended the year at 9.27 years. This was a modest increase from where the portfolio began the reporting period; we believe this potentially better positioned the Fund for any eventual easing of monetary policy, yet left the portfolio in the middle of its historic 5-15 year maturity range. This was consistent with our expectations at the outset of the year of prudently “leaning into” a slightly longer maturity stance. The Fund also maintained a preference towards higher quality bonds, with 89% of the portfolio comprised at the end of the reporting period of bond issues rated AA or higher.

With the trend in inflation remaining solidly above the 2% target of the Federal Reserve (the “Fed”), and market expectations as 2024 has begun to unfold for the Fed to continue to delay interest rate cuts, we will likely maintain the average final maturity around 9 years, and effective duration near the midpoint of the Fund’s desired range of 4-6 years. The persistent ladle shape of the municipal yield curve continues to dictate a preference towards a barbell maturity structure in the portfolio. This has translated to our seeking to maintain broad diversification across both maturity and bond structure. The Fund’s average coupon of 4.47% (as of March 31, 2024) reflected portfolio holdings across both premium bonds with coupons above 4% and select discount bonds with 3% and lower coupons.

We believe a broad approach to diversification across not only maturities and credit quality, but also across bond structures and overall municipal yield curve positioning, may enable the Fund to better navigate the continuing uncertain interest rate environment.

 

 

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MANAGEMENT DISCUSSION (continued)

 

Aquila Tax-Free Fund of Colorado

Colorado State Economy

Despite rising prices, Colorado’s economy continues to expand with a strong labor market and consumer spending. Colorado retail sales were up 0.9% in 2023 versus calendar 2022 and are expected to grow 2.9% in 2024. The fastest growing sectors in 2023 were the food and beverage places sector, growing 6.2% and general merchandise stores, growing 3.5%. The U.S. Bureau of Labor Statistics reported the State’s unemployment rate at 3.5% in February 2024. as compared with the February 2024 U.S. unemployment rate of 3.9%. Colorado’s labor force participation rate improved to 68.1% in February 2024, the fourth highest in the nation. The State’s largest job gains were in the educational and health services and the government and construction sectors.

The State’s General Fund ended its June 30, 2023 fiscal year at $18 billion with a reserve of $2.4 billion, $431.2 million above the statutory required 15.0% reserve. According to the Colorado Legislative Council’s March 2024 economic forecast, the State’s revenue is currently expected to decrease by $382.4 million in 2024, due to the passage of Proposition 121. This legislation was passed at the November 2022 election to reduce Colorado’s income tax rate from 4.55% to 4.40%. Colorado’s 2023 General Fund revenues finished the year at $18.0 billion, up 1.7% from fiscal year 2022. General Fund revenues are forecast to drop 2.1% in fiscal year 2024 and then increase 5.9% in fiscal year 2025 to finish the year at $18.7 billion.

The State collected a Tax Payer’s Bill of Rights (“TABOR”) surplus of $3.56 billion for fiscal year 2023 and is projecting a TABOR surplus of $1.82 billion in fiscal year 2024. Sales tax revenues are projected to increase 2.2% from fiscal year 2023 and expected to grow 3.5% in fiscal year 2025, as labor conditions soften and higher interest rates lead to tighter lending standards.

Aquila Tax-Free Fund of Colorado Performance:

      March 31, 2024
1-Year Total Return
  Class A Share (without sales charge)   1.74%
  Class Y Share   1.70%
  Bloomberg Municipal Bond Quality Intermediate Index   2.05%

 

Aquila Tax-Free Fund of Colorado Portfolio Characteristics:

      March 31, 2023   March 31, 2024
  Weighted Average Maturity   6.52 yrs.   9.08 yrs.
  Option Adj. (Effective) Duration   3.96 yrs.   4.83 yrs.
  Modified Duration   3.80 yrs.   4.31 yrs.

 

 

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MANAGEMENT DISCUSSION (continued)

 

Bloomberg Municipal Bond Quality Intermediate Index Characteristics:

      March 31, 2023   March 31, 2024
  Weighted Average Maturity   6.46 yrs.   6.58 yrs.
  Effective Duration   4.00 yrs.   3.99 yrs.
  Modified Duration   3.80 yrs.   3.91 yrs.

 

Aquila Tax-Free Fund of Colorado (the “Fund”) was defensively positioned with a goal to withstand the rising interest rate market experienced over this past year. Accordingly, the total return for the Fund’s Class A Share (without sales charge) was 1.74% for the fiscal-year ended March 31, 2024 compared to 2.05% for the Bloomberg Municipal Bond Quality Intermediate Index (the “Index”). It should be noted that the Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state-specific bond market performance.

The Fund’s shorter duration, higher credit quality and underweight positions in the airports, charter schools and industrial development sectors were all factors that contributed to unfavorable Fund performance versus the Index. However, our overweight position in longer intermediate maturities, city, toll roads, K-12 school districts contributed to overall outperformance versus the Index.

Outlook and Strategy

Aquila Tax-Free Fund of Colorado continues to implement the longstanding tenets of the Aquila Group of Funds, namely, local management, high credit quality and intermediate maturity focus. With a relatively flat yield curve from approximately five to ten years and dynamic market conditions, we remain cautious in our selection of municipal bonds. While recent comments of Fed Chair Powell maintain that rates will fall later this year, rates have recently increased as traders speculate about the Fed not cutting rates until later this year. Over this past year, we have sought to take advantage of the higher interest rate environment by selling lower book yield securities and replacing them with higher yielding securities, where the yield curve steepens in the 10 to 15-year maturity range.

Credit research remains the cornerstone of our strategy, with vigilant monitoring of both issuers and sectors. Under our overall defensive portfolio strategy, credit quality remains very high with approximately 92% of the portfolio rated AA or higher (as of 3/31/2024). Although we have observed wider spreads for certain credits, we are only selectively taking risk where we believe we find risk rewarded. Furthermore, we have expanded our effort to evaluate currently under-represented sectors and bonds with attractive structures or relative spreads. These under-represented sectors could present an opportunity to increase exposure to holdings with yields commensurate to, or exceeding, potential volatility. We believe these opportunities may present an opportunity to capture incremental yield while helping to diversifying associated risk.

We believe our current fund maturity and duration exposure should leave us in a desirable position to respond to any favorable shifts that may occur in the yield curve and credit spreads as monetary policy continues to unfold. If the Fed continues

 

 

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MANAGEMENT DISCUSSION (continued)

 

their strategy of leaving interest rates steady, the volatility the municipal market has experienced over the first quarter of 2024 may likely continue, as the Fed waits for confirmation that inflation is under control. These periods can introduce valuable opportunities to leverage our demonstrated active management techniques that have historically enabled the Fund to minimize share price volatility while maintaining a conservative intermediate maturity position and producing tax-exempt income.

Aquila Churchill Tax-Free Fund of Kentucky

Kentucky State Economy

For the fiscal year ending June 30, 2023, Kentucky State reported total General Fund Receipts of $15.1 billion, which exceeded budgeted estimates by $1.4 billion. This contributed to the largest state surplus in history. Road Fund Revenue totaled $1.75 billion which resulted in 4.7% growth or a $32.3 million revenue surplus. Budget director John Hicks said, “Kentucky’s economy is borne out by this revenue report: more jobs, higher wages and salaries, another year of double digit growth in sales tax revenues and continued business profits.” This growth comes in conjunction with a six month of reduction in the Individual Income Tax Rate to 4.5%. On January 1, 2024, the Kentucky state income tax was reduced to 4%. In September 2023, it was announced that since the State did not meet one of two revenue hurdles the income tax rate would remain at 4.0% thru 2025. The Kentucky “rainy day fund” has grown to a record $3.7 billion or 24.6% of total general revenue at the end of the fiscal year ended June 30, 2023.

For the fiscal year that began on July 1, 2023, through the end of March 2024, General Fund Revenues are up 3.9% fiscal year-to-date. The budgeted revenue growth rate for the General Receipts is 2.7%, so over the next three months revenue only has to grow 0.4% to meet budget. Road revenue has grown at a 7.3% for the fiscal year 2024 and must maintain this growth over the next three months to make budget.

The Unemployment Rate for the State has inched higher, standing at 4.5% at the end of March 2024, while the National Unemployment Rate was 3.80% for the same period. There has been substantially fewer announcements of business expansions in the State compared to last year. A major reversal of the 2023 Ford / SK Blue Oval factories (both located in Glendale, Kentucky) was announced in late October 2023. The Kentucky #1 factory will open in 2025 and is targeted to provide 2,500 new jobs. The company stated it would postpone completion of the Kentucky #2 factory indefinitely. The factory was targeted to provide an additional 2,500 jobs. The rationale behind the postponement is the uncertainty surrounding Electronic Vehicle (“EV”) sales across the United States. In February 2024, Toyota announced at its Georgetown, Kentucky factory, a $1.3 billion expansion to build their flagship Battery Electric Vehicles which will provide 700 new jobs in the greater Lexington market.

 

 

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MANAGEMENT DISCUSSION (continued)

 

Aquila Churchill Tax-Free Fund of Kentucky performance:

      March 31, 2024
1-Year Total Return
  Class A Share at NAV (without sales charge)   1.90%
  Class Y Share   2.16%
  Bloomberg Municipal Bond Quality Intermediate Index   2.05%

 

Aquila Churchill Tax-Free Fund of Kentucky Portfolio Characteristics:

      March 31, 2023   March 31, 2024
  Weighted Average Maturity   7.47 yrs.   7.54 yrs.
  Option Adj. (Effective) Duration   4.17 yrs.   4.08 yrs.
  Modified Duration   4.05 yrs.   3.91 yrs.

 

Bloomberg Municipal Bond Quality Intermediate Index Characteristics:

      March 31, 2023   March 31, 2024
  Weighted Average Maturity   6.46 yrs.   6.58 yrs.
  Effective Duration   4.00 yrs.   3.99 yrs.
  Modified Duration   3.80 yrs.   3.91 yrs.

 

Aquila Churchill Tax-Free Fund of Kentucky (the “Fund”) Class Y Shares outperformed the Bloomberg Municipal Bond Quality Intermediate Index (the “Index”) over the reporting period ending March 31, 2024. (Note: the Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state-specific bond market performance.)

The composition of the Fund was shifted in May and June of 2023 to a significantly higher AA rating as a result of the credit rating upgrades. During the fiscal year, the Fund’s purchase of single A rated securities with higher yields, together with the higher yields related to the Fund’s lower credit quality composition versus the Index (which was positioned in a higher percentage of AAA rated securities) assisted the Fund in its outperformance versus the Index.

  Aquila Churchill Tax-Free Fund of Kentucky versus the Index
Ratings Breakdown as of March 31, 2024

 

  Rating   Fund   Index
  A     36.15%   24.17%
  AA   57.46%   58.59%
  AAA and Pre-refunded bonds     2.25%   17.22%

 

Outlook and Strategy

Aquila Churchill Tax-Free Fund of Kentucky continues to implement the longstanding tenets of the Aquila Group of Funds, namely, local management, high quality and intermediate maturity focus. In this volatile market we are seeking to

 

 

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MANAGEMENT DISCUSSION (continued)

 

purchase and retain the highest quality securities that we believe the State offers based upon our analytics and credit perspective obtained over our long local tenure in the Kentucky market. Credit research remains a cornerstone for the Fund. The Fund raised the AA rated position to 57.46% of the portfolio (as a result of the aforementioned credit rating upgrades) and lowered the single A portion of the portfolio to 36.15%. This positioning stands in contrast to 51% in the single A rated category in March 2023 and 39% in the AA rated category in 2023. With the volatility we are experiencing in the fixed income markets, in our opinion, we believe we are keenly aware of value when we see it and are therefore striving to hold a slightly higher percentages of cash which should enable us to purchase securities that we deem will add value to the portfolio, as they become available in both the Primary and Secondary markets.

We believe our current fund maturity and duration exposure should leave us in a desirable position to respond to any favorable shifts that may occur in the yield curve and credit spreads as monetary policy continues to unfold. The volatility the municipal market has experienced in the past year may likely continue if the Federal Reserve continues with their strategy of holding rates higher for longer, along with inflation at recent elevated levels. These periods can introduce valuable opportunities to leverage our demonstrated active management techniques that have historically enabled the Fund to limit erosion in the monthly distributions, while maintaining a conservative intermediate maturity position.

Aquila Tax-Free Trust of Oregon

Oregon State Economy

Personal and corporate tax collections are tracking closely to the State’s expectations. Oregon’s revenue outlook accordingly appears to have stabilized. State economists disclosed, in their March 2024 Economic and Revenue Forecast that the State has accumulated larger reserve fund balances than it had been able to accumulate in past cycles, which should help stabilize the budget should a recession occur. The Oregon Rainy Day Fund and the Education Stability Fund currently total a combined $2.2 billion as of March 2024. At the end of the 2023-25 biennium, the two reserves are projected by the State to total $2.9 billion, which is equal to 11.2% of current revenues. Including the currently projected $1.7 billion ending balance in the State’s General Fund, the total effective reserves at the end of the current 2023-25 biennium are projected to be 17.6% of the State’s current revenues.

Although the labor market remains healthy, it has eased from the overheated state witnessed during the pandemic. For the past two years, Oregon’s unemployment rate has remained in a historically low range between 3.4% and 4.2%. The State’s unemployment rate increased to 4.2% in February from 4.1% in January. For comparison, the U.S. unemployment rate was lower at 3.9% in February and 3.7% in January 2024. The State reported seasonally adjusted nonfarm payroll employment rose by 4,400 jobs for the month of February following January’s revised loss. Oregon’s private sector cut 11,300 jobs, or -0.7%, over the most recent 12-month period ended February 29, 2024. Job losses were greatest in information, professional

 

 

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MANAGEMENT DISCUSSION (continued)

 

and business services, manufacturing, and retail trade, each down by between 3,400 and 9,300 jobs.

Rising mortgage rates, due to the Federal Reserve’s (the “Fed”) continued moves to curb inflation, have made home financing more expensive. The purpose of the rate increases is to cool prices off, and Oregon markets are responding with declining home sale prices and less activity. The Willamette Valley Multiple Listings Service (“WVMLS”), which covers Benton, Linn, Marion and Polk counties, reported that the number of closed sales declined 14.9% for the 12-month period ended March 31, 2024 versus 2023. However, the median sales price reported by the WVMLS increased for March 2024 to $431,000, a 1.8% increase from February 2023. According to data reported by Standard & Poor’s for the S&P CoreLogic Case-Shiller Index, national home prices increased 6.0% year-over-year in January 2023, the fastest annual rate since 2022. San Diego (up 11.2%) and Los Angeles (up 8.6%) showed the largest gains, while Portland (up 0.9%) lagged behind.

 

Higher interest rates have also impacted municipal bond issuance. The pace of Oregon issuance has slowed significantly over the first three months of 2024 with only 6 new deals compared to 10 new deals during the first quarter of 2023. Issuance of tax-exempt non-AMT municipal bonds for the first quarter of 2024 was 93% below the first quarter of 2023 issuance. As a result, it has become increasingly more challenging to source new Oregon bonds. Over the past quarter, new issues have included general obligation bonds from the City of Molalla, City of Hermiston, City of Portland and St. Paul School District. The City of Beaverton also sold water revenue bonds. However, there were no refunding issues.

Historically, the November election has been an important source of municipal bond issuance in Oregon and an indication of the level of issuance for the following year. At Oregon’s November 2023 Special Election, Oregon residents only approved two issues with a combined par amount of $19 million, across the State. These results were very anemic compared to previous elections. However, the upcoming May 21,

 Oregon
Tax-Exempt Municipal Bond Issuance
March 31, 2024
$(MM)*
                Source: Bloomberg and Aquila Investment Management LLC

 

 

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2024 Primary Election has $1.23 billion in new money measures from school districts, cities and special districts throughout Oregon. There are 22 local governments on the May ballot requesting from $2.5 million to $380 million. The largest measure is from Metro for Improvements to the Oregon Zoo. Depending upon election results, Oregon issuance could be dramatically different during the second half of 2024.

Aquila Tax-Free Trust of Oregon Performance:

      March 31, 2024
1-Year Total Return
  Class A Share (without sales charge)   1.07%
  Class Y Share   1.22%
  Bloomberg Municipal Bond Quality Intermediate Index   2.05%

 

Aquila Tax-Free Trust of Oregon Portfolio Characteristics:

      March 31, 2023   March 31, 2024
  Weighted Average Maturity   6.88 yrs.   8.12 yrs.
  Option Adj. (Effective) Duration   3.93 yrs.   4.13 yrs.
  Modified Duration   3.84 yrs.   3.82 yrs.

 

Bloomberg Municipal Bond Quality Intermediate Index Characteristics:

      March 31, 2023   March 31, 2024
  Weighted Average Maturity   6.46 yrs.   6.58 yrs.
  Effective Duration   4.00 yrs.   3.99 yrs.
  Modified Duration   3.80 yrs.   3.91 yrs.

 

Aquila Tax-Free Trust of Oregon (the “Fund”) was defensively positioned with a goal to withstand the rising interest rate market experienced over this past year. Accordingly, the total return for the Fund’s Class A Share (without sales charge) was 1.07% for the fiscal-year ended March 31, 2024 compared to 2.05% for the Bloomberg Municipal Bond Quality Intermediate Index (the “Index”). It should be noted that the Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state-specific bond market performance.

The Fund’s shorter duration, higher credit quality and underweight positions in the airports, charter schools, retirement centers, single-family housing and industrial development sectors, were all factors that contributed to unfavorable Fund performance versus the Index. However, our overweight position in K-12 school districts and bonds issued by cities contributed to overall outperformance versus the Index.

Outlook and Strategy

Aquila Tax-Free Trust of Oregon continues to implement the longstanding tenets of the Aquila Group of Funds, namely, local management, high credit quality and intermediate maturity focus. With a relatively flat yield curve from approximately five to ten years and dynamic market conditions, we remain cautious in our selection of

 

 

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municipal bonds. While recent comments of Fed Chair Powell maintain that rates will fall later this year, rates have recently increased as traders speculate about the Fed not cutting rates until later this year. Over this past year, we have sought to take advantage of the higher interest rate environment by selling lower book yield securities and replacing them with higher yielding securities, where the yield curve steepens in the 10 to 15-year maturity range.

Credit research remains the cornerstone of our strategy, with vigilant monitoring of both issuers and sectors. Under our overall defensive portfolio strategy, credit quality remains very high with approximately 91% of the portfolio rated AA or higher (as of 3/31/2024). Although we have observed wider spreads for certain credits, we are only selectively taking risk where we believe we find risk rewarded. Furthermore, we have expanded our effort to evaluate currently under-represented sectors and bonds with attractive structures or relative spreads. These under-represented sectors could present an opportunity to increase exposure to holdings with yields commensurate to, or exceeding, potential volatility. We believe these opportunities may present an opportunity to capture incremental yield while helping to diversifying associated risk.

We believe our current fund maturity and duration exposure should leave us in a desirable position to respond to any favorable shifts that may occur in the yield curve and credit spreads as monetary policy continues to unfold. If the Fed continues their strategy of leaving interest rates steady, the volatility the municipal market has experienced over the first quarter of 2024 may likely continue, as the Fed waits for confirmation that inflation is under control. These periods can introduce valuable opportunities to leverage our demonstrated active management techniques that have historically enabled the Fund to minimize share price volatility while maintaining a conservative intermediate maturity position and producing tax-exempt income.

Aquila Narragansett Tax-Free Income Fund

Rhode Island Economy

Both employment and jobs based in Rhode Island showed good progress over the past year through the period ended March 31, 2024. Specifically, the number of working Rhode Island residents grew by 3,700 and the labor force also grew by 11,600 over the year. Rhode Island based jobs were up 8,800 over the year and marked an all-time high. The labor force participation rates continued to trend higher to 64.4% and remained above that of the national rate of 62.7%. The state has added 1,400 jobs per month on-average during the first quarter of 2024. Additionally, manufacturing hours in Rhode Island saw a rather large increase in weekly hours worked, up 2.8 hours from a year ago to 41.6 hours. Perhaps part of this increase is a result of a locally-based program that has trained over 5,000 workers for General Dynamics’ Electric Boat submarine facilities since 2020. The program is expected to train 2,800 workers a year for various new positions, which includes Rhode Island’s own Quonset Point facility.

The City of Providence recently proposed its Fiscal Year 2025 budget (for year-end June 30) of $598.6 million. The budget calls for a 3% increase over the prior

 

 

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MANAGEMENT DISCUSSION (continued)

 

fiscal year, all without a residential tax increase. The mayor is looking to eliminate the homestead exemption by breaking down the tax rate into two categories: owner-occupied and non-owner occupied. The commercial tax rate would not change. The ability to not have to raise residential tax rates is mainly a result of payment in lieu of taxes (PILOT) agreements with many of the city’s colleges and universities. This would also allow for the city to provide higher funding for education, public safety and other city services.

Fund Performance

Returns for calendar year 2023 for the Aquila Narragansett Tax-Free Income Fund Class Y Shares were 4.39% and 4.65% for the Bloomberg Quality Intermediate Municipal Bond Index (the “Index”), respectively. For the fiscal year ending March 31, 2024, performance for the Fund’s Y Share class was 1.76% which was below the 2.05% return of the Index for the same period.

The Fund underperformed the Index mainly due to two factors. With longer duration than the Index, interest rate movements impacted the portfolio to a greater degree. The longer duration allowed for a bit more variance (both positive and negative) in returns relative to the Index, causing slightly lower overall returns. While the positioning detracted from performance for the first half of the Fund’s fiscal year, during the second half of the year when markets rallied or moved gradually higher the Fund performed relatively better. Having a number of longer-dated bonds in the portfolio at times moved bond values between their call and maturity dates. This volatility led to price swings in the Fund’s share price and ultimately caused returns to marginally lag the benchmark. The higher portfolio yield relative to the Index provided some buffer during higher movement in interest rates. The second factor that contributed to underperformance versus the Index was the difference in credit distribution within the portfolio. When compared with the Index, the Fund has a higher percentage of AA quality bonds, a lower percentage of A and BBB bonds. There were also some considerable variations in sectors compared with the Index that accounted for performance differences.

Rhode Island saw an increase in primary issuance both on a calendar year and fiscal year basis. In particular, the first quarter of 2024 saw some less frequent issuers come to market which were well-received and had very tight spreads relative to their credit ratings.

Outlook and Strategy

Markets continue to try and outguess Federal Reserve (the “Fed”) policy as witnessed throughout the prior three quarters. Apparently, anxious markets forgot about the old adage “Don’t fight the Fed” and, therefore, market participants saw very wide swings in interest rates. While the yield curve remains inverted, longer rates have moved higher, flattening the curve, a result of concerns of more stubborn inflation and the lack of Fed policy rate cuts for the remainder of the year. While this has made bond yields look even more attractive, municipal bond spreads remain tight and relative value is more difficult to find. Recent portfolio moves have been

 

 

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to shorten duration relative to the normal positioning and more closely to the Index in order to take advantage of any forthcoming spread widening. Future trades will seek to continue to balance the additional yield with interest rate sensitivity of the portfolio with a goal to ensure a relatively stable net asset value (“NAV”). Despite the potential for more volatile interest rates, we remain steadfast in our commitment to our shareholders in an attempt to provide value regardless of market environment as we have sought to provide since 1992.

Aquila Tax-Free Fund For Utah

Utah State Economy

During the reporting period ending March 31, 2024, the Utah economy exhibited strong growth with a somewhat moderating undertone. The State’s unemployment rate in March 2024 was 2.8% which compared favorably to the March overall U.S. unemployment rate of 3.8%. The State also outperformed the overall U.S. economy in employment growth, as year-over-year employment grew 2.1% as of March 2024 compared to the 1.9% increase in U.S. employment in the same period. The construction industry registered the largest increase (+5.1%) in employment during this period, reflecting the health of the State’s economy.

The Bureau of Economic Analysis most recent report in March 2024 showed the Utah economy grew 5.4% in the fourth quarter of 2023, which was the third highest in the country. One of the underlying factors in the State’s economic performance is its labor force participation rate of 69%, the highest in the United States. Along with these robust economic growth trends, another factor that contributes to the AAA credit rating that the State of Utah maintains its debt management has been deemed to be well thought out. Reflecting this is the drop in per Capita Net General Obligation Debt at the State level to $561 at the end of Fiscal Year 2023, less than half the $1,159 per capital amount reported at the end of Fiscal Year 2014.

The median Utah home price reported in March 2024 was $533,500, a modest 1.9% increase compared to a year ago. The Utah housing market has demonstrated remarkable resilience despite the significantly higher mortgage rate environment compared to two years ago. Utah home price values and valuations remain attractive compared to those of many regions from which Utah is attracting new population and homebuyers, such as California and the Northeast. This has helped support the pace of home buying in the State.

Fund Performance

Aquila Tax-Free Fund For Utah Performance:

      March 31, 2024
1-Year Total Return
  Class A Share (without sales charge)   1.76%
  Class Y Share   2.07%
  Bloomberg Municipal Bond Quality Intermediate Index   2.05%

 

 

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MANAGEMENT DISCUSSION (continued)

 

Aquila Tax-Free Fund For Utah Portfolio Characteristics:

      March 31, 2023   March 31, 2024
  Weighted Average Maturity   9.54 yrs.   9.40 yrs.
  Option Adj. (Effective) Duration   4.63 yrs.   3.80 yrs.
  Modified Duration   4.33 yrs.   3.95 yrs.

 

Bloomberg Municipal Bond Quality Intermediate Index Characteristics:

      March 31, 2023   March 31, 2024
  Weighted Average Maturity   6.46 yrs.   6.58 yrs.
  Option Adj. (Effective) Duration   4.00 yrs.   3.99 yrs.
  Modified Duration   3.80 yrs.   3.91 yrs.

 

The Aquila Tax-Free Fund For Utah (the “Fund”) Class A Share total return underperformed the Bloomberg Municipal Bond Quality Intermediate Index (the “Index”) of 2.05%, while the Fund’s Class Y Share total return of 2.07% slightly exceeded the Index return. (Note: the Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state-specific bond market performance.)

The slightly longer maturity position of the Fund contributed to Class A Share underperformance compared to the Index. However, the Index is comprised of a narrower, and more concentrated, maturity exposure than that of the Fund. Part of our approach to pursuing an average intermediate maturity and duration is to combine a more broadly diversified range of maturities across the yield curve with a goal to avoid concentrating in overpriced areas and seeking to ensure there is exposure to areas that may be undervalued.

Outlook and Strategy

Throughout the reporting period ending March 31, 2024, we maintained what we believe to have been a fairly neutral interest rate risk stance while responding opportunistically in periods of market fluctuations. Average final maturity ended the year at 9.40 years. This was a modest decline from where it began the reporting period, while the modified and effective duration of the Fund experienced somewhat larger declines resulting primarily from a combination of increased valuations on the Fund’s holdings of premium coupon callable bonds. The Fund also maintained a preference towards higher quality bonds, with 77% of the portfolio comprised at the end of the reporting period of bond issues rated AA or higher.

With the trend in inflation remaining solidly above the 2% target of the Federal Reserve (“the Fed”), and market expectations as 2024 has begun to unfold for the Fed to continue to delay interest rate cuts, we will likely maintain the average final maturity and effective duration of the Fund near these present levels. The persistent ladle shape of the municipal yield curve continues to dictate a preference towards a barbell maturity structure in the portfolio. This has translated to our seeking to maintain broad diversification across both maturity and bond structure. The Fund’s

 

 

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MANAGEMENT DISCUSSION (continued)

 

average coupon of 4.46% (as of March 31, 2024) reflected portfolio holdings across both premium bonds with coupons above 4.00% and select discount bonds with 3.00% and lower coupons.

We believe a broad approach to diversification across not only maturities and credit quality, but also across bond structures and overall municipal yield curve positioning, may enable the Fund to better navigate the continuing uncertain interest rate environment.

 

 

                                                                                  

 

*Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Bloomberg does not approve or endorse this material or guarantee the accuracy or completeness of any information therein, nor does Bloomberg make any warranty, express or implied, as to results to be obtained therefrom, and, to the maximum extent allowed by the law, Bloomberg shall not have any liability or responsibility for any injury or damages arising in connection therewith.

 

                                                                                  

 

Mutual fund investing involves risk and loss of principal is possible.

The market prices of the Funds’ securities may rise or decline in value due to general market conditions, such as real or perceived adverse economic, political or regulatory conditions, political instability, recessions, inflation, changes in interest rates, lack of liquidity in the bond markets, the spread of infectious illness or other public health issues, weather or climate events, armed conflict, sanctions or other government actions, market disruptions caused by tariffs, trade disputes or other factors, or adverse investor sentiment. When market prices fall, the value of your investment may go down. In the past decade, financial markets have experienced increased volatility, depressed valuations, decreased liquidity and heightened uncertainty. These conditions may continue, recur, worsen or spread.

The long-term impact of the COVID-19 pandemic and its subsequent variants on economies, markets, industries and individual issuers, are not known. Some sectors of the economy and individual issuers have experienced or may experience particularly large losses. Periods of extreme volatility in the financial markets, reduced liquidity of many instruments, increased government debt, inflation, and disruptions to supply chains, consumer demand and employee availability, may continue for some time.

Raising the ceiling on U.S. government debt has become increasingly politicized. Any failure to increase the total amount that the U.S. government is authorized to borrow could lead to a default on U.S. government obligations, with unpredictable consequences for economies and markets in the U.S. and elsewhere. Inflation and interest rates have increased and may rise further. These circumstances could adversely affect the value and liquidity of the Funds’ investments, impair the Funds’ ability to satisfy redemption requests, and negatively impact the Funds’ performance.

Economies and financial markets throughout the world are increasingly interconnected. Economic, financial or political events, trading and tariff arrangements, public health events, terrorism, wars, natural disasters and other circumstances in one country or region could have profound impacts on global economies or markets. As a result, whether or not the Funds invest in securities of issuers located in or with significant exposure to the countries or markets directly affected, the value and liquidity of the Funds’ investments may be negatively affected. Following Russia’s invasion of Ukraine, Russian securities lost all, or nearly all, their market value. Other securities or markets could be similarly affected by past or future political, geopolitical or other events or conditions. Furthermore, events involving limited liquidity, defaults, non-performance or other adverse developments that affect one industry, such as the financial services industry, or concerns or rumors about any events of these kinds, have in the past and may in the future lead to market-wide liquidity problems, may spread to other industries, and could negatively affect the value and liquidity of the Funds’ investments.

Governments and central banks, including the U.S. Federal Reserve, have taken extraordinary and unprecedented actions to support local and global economies and the financial markets. These actions have resulted in significant expansion of public debt, including in the U.S. The consequences of high public debt, including its future impact on the economy and securities markets, may not be known for some time.

 

 

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MANAGEMENT DISCUSSION (continued)

 

The U.S. and other countries are periodically involved in disputes over trade and other matters, which may result in tariffs, investment restrictions and adverse impacts on affected companies and securities. For example, the U.S. has imposed tariffs and other trade barriers on Chinese exports, has restricted sales of certain categories of goods to China, and has established barriers to investments in China. Trade disputes may adversely affect the economies of the U.S. and its trading partners, as well as companies directly or indirectly affected and financial markets generally. If the political climate between the U.S. and China does not improve or continues to deteriorate, if China were to attempt unification of Taiwan by force, or if other geopolitical conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally and globally, and the value of the Funds’ assets may go down.

The value of your investment will generally go down when interest rates rise. A rise in interest rates tends to have a greater impact on the prices of longer term or longer duration securities. In recent years, interest rates and credit spreads in the U.S. have been at historic lows. The U.S. Federal Reserve has raised certain interest rates, and interest rates may continue to go up. A general rise in interest rates may cause investors to move out of fixed income securities on a large scale and could also result in increased redemptions from the Funds.

Investments in the Funds are subject to possible loss due to the financial failure of the issuers of underlying securities and their inability to meet their debt obligations.

The value of municipal securities can be adversely affected by changes in the financial condition of one or more individual municipal issuers or insurers of municipal issuers, regulatory developments, legislative actions, and by uncertainties and public perceptions concerning these and other factors. The Funds may be affected significantly by adverse economic, political or other events affecting state and other municipal issuers in which they invest, and may be more volatile than a more geographically diverse fund. The municipal bond market can be susceptible to unusual volatility, particularly for lower-rated and unrated securities. Liquidity can be reduced unpredictably in response to overall economic conditions or credit tightening. Municipal issuers may be adversely affected by rising health care costs, increasing unfunded pension liabilities, and by the phasing out of federal programs providing financial support. Unfavorable conditions and developments relating to projects financed with municipal securities can result in lower revenues to issuers of municipal securities, potentially resulting in defaults. Municipal securities may be more susceptible to downgrades or defaults during a recession or similar periods of economic stress. Financial difficulties of municipal issuers may continue or get worse, particularly in the event of political, economic or market turmoil or a recession.

A portion of income may be subject to local, state, Federal and/or alternative minimum tax. Capital gains, if any, are subject to capital gains tax.

These risks may result in share price volatility.

Any information in this Annual Report regarding market or economic trends or the factors influencing the Funds’ historical or future performance are statements of opinion as of the date of this report. These statements should not be relied upon for any other purposes. Past performance is no guarantee of future results, and there is no guarantee that any market forecasts discussed will be realized.

 

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PERFORMANCE REPORTS

 

Aquila Tax-Free Trust of Arizona

The following graph illustrates the value of $10,000 invested in the Class Y shares of Aquila Tax-Free Trust of Arizona (the “Fund”) for the 10-year period ended March 31, 2024 as compared with the Bloomberg Municipal Bond: Quality Intermediate TR Unhedged Index† (the “Bloomberg Intermediate Index”) and the Consumer Price Index (a cost of living index). The performance of each of the other classes is not shown in the graph but is included in the table below. It should be noted that the Bloomberg Intermediate Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state-specific bond market performance.

 

 

    Average Annual Total Return
for periods ended March 31, 2024		  
Class and Inception Date   1 Year   5 Years   10 Years   Since
Inception		  
Class A since 3/13/86                  
With Maximum Sales Charge   (1.20)%   (0.03)%   1.56%   4.60%  
Without Sales Charge   1.91   0.78   1.97   4.71  
Class C since 4/01/96                  
With CDSC**   0.05   (0.09)   1.10   2.81  
Without CDSC   1.04   (0.09)   1.10   2.81  
Class Y since 4/01/96                  
No Sales Charge   2.06   0.91   2.11   3.91  
Bloomberg Intermediate Index   2.05   1.41   2.04   4.58* (Class A)
                3.78 (Class C & Y)

 

Total return figures shown for the Fund reflect any change in price and assume all distributions within the period including capital gains, were invested in additional shares. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund Shares. The rates of return will vary and the principal value of an investment will fluctuate with market conditions. Shares, if redeemed, may be worth more or less than their original cost. A portion of each class’s income may be subject to Federal and state income taxes and/or the Federal Alternative Minimum Tax (“AMT”). Past performance is not predictive of future investment results.

 

*       From commencement of the Bloomberg Barclays Quality Index on 1/1/87.

**     CDSC = 1% contingent deferred sales charge imposed on redemptions made within the first 12 months after purchase.

 

 

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Aquila Tax-Free Fund of Colorado

The following graph illustrates the value of $10,000 invested in the Class Y shares of Aquila Tax-Free Fund of Colorado (the “Fund”) for the 10-year period ended March 31, 2024 as compared with the Bloomberg Municipal Bond: Quality Intermediate TR Unhedged Index† (the “Bloomberg Intermediate Index”) and the Consumer Price Index (a cost of living index). The performance of each of the other classes is not shown in the graph but is included in the table below. It should be noted that the Bloomberg Intermediate Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state-specific bond market performance.

 

 

    Average Annual Total Return
for periods ended March 31, 2024		  
Class and Inception Date   1 Year   5 Years   10 Years   Since
Inception		  
Class A since 5/21/87                  
With Maximum Sales Charge   (1.36)%   (0.22)%   1.23%   4.18%  
Without Sales Charge   1.74   0.61   1.65   4.29  
Class C since 4/30/96                  
With CDSC*   (0.31)   (0.36)   0.69   2.38  
Without CDSC   0.68   (0.36)   0.69   2.38  
Class Y since 4/30/96                  
No Sales Charge   1.70   0.65   1.70   3.48  
Bloomberg Intermediate Index   2.05   1.41   2.04   4.64 (Class A)
                3.79 (Class C & Y)

 

Total return figures shown for the Fund reflect any change in price and assume all distributions, including capital gains, within the period were invested in additional shares. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund Shares. The rates of return will vary and the principal value of an investment will fluctuate with market conditions. Shares, if redeemed, may be worth more or less than their original cost. A portion of each class’s income may be subject to Federal and state income taxes. Past performance is not predictive of future investment results.

 

*     CDSC = 1% contingent deferred sales charge imposed on redemptions made within the first 12 months after purchase.

 

 

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Aquila Churchill Tax-Free Fund of Kentucky

The following graph illustrates the value of $10,000 invested in the Class Y shares of Aquila Churchill Tax-Free Fund of Kentucky (the “Fund”) for the 10-year period ended March 31, 2024 as compared with the Bloomberg Municipal Bond: Quality Intermediate TR Unhedged Index† (the “Bloomberg Intermediate Index”) and the Consumer Price Index (a cost of living index). The performance of each of the other classes is not shown in the graph but is included in the table below. It should be noted that the Bloomberg Intermediate Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state-specific bond market performance.

 

 

    Average Annual Total Return
for periods ended March 31, 2024		  
Class and Inception Date   1 Year   5 Years   10 Years   Since
Inception		  
Class A since 5/21/87                  
With Maximum Sales Charge   (1.15)%   0.12%   1.44%   4.41%  
Without Sales Charge   1.90   0.94   1.85   4.52  
Class C since 4/01/96                  
With CDSC*   0.04   0.08   1.00   2.68  
Without CDSC   1.04   0.08   1.00   2.68  
Class F since 12/21/22                  
No Sales Charge   2.08   N/A   N/A   3.13  
Class I since 8/06/01                  
No Sales Charge   1.85   0.79   1.71   2.99  
Class Y since 4/01/96                  
No Sales Charge   2.16   1.09   2.01   3.71  
Bloomberg Intermediate Index   2.05   1.41   2.04   4.64 (Class A)
                3.78 (Class C & Y)
                2.59 (Class F)
                3.30 (Class I)

 

Total return figures shown for the Fund reflect any change in price and assume all distributions, including capital gains, within the period were invested in additional shares. The returns shown do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund Shares. The rates of return will vary and the principal value of an investment will fluctuate with market conditions. Shares, if redeemed, may be worth more or less than their original cost. A portion of each class’s income may be subject to Federal and state income taxes and/or the Federal Alternative Minimum Tax (“AMT”). Past performance is not predictive of future investment results.

 

*     CDSC = 1% contingent deferred sales charge imposed on redemptions made within the first 12 months after purchase.

 

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Aquila Tax-Free Trust of Oregon

The following graph illustrates the value of $10,000 invested in the Class Y shares of Aquila Tax-Free Trust of Oregon (the “Fund”) for the 10-year period ended March 31, 2024 as compared with the Bloomberg Municipal Bond: Quality Intermediate TR Unhedged Index† (the “Bloomberg Intermediate Index”) and the Consumer Price Index (a cost of living index). The performance of each of the other classes is not shown in the graph but is included in the table below. It should be noted that the Bloomberg Intermediate Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state-specific bond market performance.

 

 

    Average Annual Total Return
for periods ended March 31, 2024		  
Class and Inception Date   1 Year   5 Years   10 Years   Since
Inception		  
Class A since 6/01/86                  
With Maximum Sales Charge   (1.93)%   (0.26)%   1.11%   4.34%  
Without Sales Charge   1.07   0.56   1.53   4.45  
Class C since 4/5/96                  
With CDSC**   (0.68)   (0.30)   0.67   2.64  
Without CDSC   0.31   (0.30)   0.67   2.64  
Class F since 11/30/18                  
No Sales Charge   1.25   0.75   N/A   1.27  
Class Y since 4/5/96                  
No Sales Charge   1.22   0.71   1.68   3.67  
Bloomberg Intermediate Index   2.05   1.41   2.04   4.58* (Class A)
                3.79 (Class C & Y)
                1.61 (Class F)

 

Total return figures shown for the Fund reflect any change in price and assume all distributions, including capital gains, within the period were invested in additional shares. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund Shares. The rates of return will vary and the principal value of an investment will fluctuate with market conditions. Shares, if redeemed, may be worth more or less than their original cost. A portion of each class’s income may be subject to Federal and state income taxes. Past performance is not predictive of future investment results.

 

*       From commencement of the Bloomberg Barclays Quality Index on 1/1/87.

**     CDSC = 1% contingent deferred sales charge imposed on redemptions made within the first 12 months after purchase.

 

 

21  |  Aquila Municipal Trust

 

 
 
 

 

Aquila Narragansett Tax-Free Income Fund

The following graph illustrates the value of $10,000 invested in the Class Y shares of Aquila Narragansett Tax-Free Income Fund (the “Fund”) for the 10-year period ended March 31, 2024 as compared with the Bloomberg Municipal Bond: Quality Intermediate TR Unhedged Index† (the “Bloomberg Intermediate Index”) and the Consumer Price Index (a cost of living index). The performance of each of the other classes is not shown in the graph but is included in the table below. It should be noted that the Bloomberg Intermediate Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state-specific bond market performance.

 

 

    Average Annual Total Return
for periods ended March 31, 2024		  
Class and Inception Date   1 Year   5 Years   10 Years   Since
Inception		  
Class A since 9/10/92                  
With Maximum Sales Charge   (1.30)%   0.01%   1.61%   3.78%  
Without Sales Charge   1.71   0.84   2.02   3.91  
Class C since 5/01/96                  
With CDSC*   (0.15)   (0.02)   1.16   2.70  
Without CDSC   0.85   (0.02)   1.16   2.70  
Class F since 11/30/18                  
No Sales Charge   1.79   1.00   N/A   1.53  
Class I since 11/04/98                  
No Sales Charge   1.47   0.69   1.90   3.09  
Class Y since 5/01/96                  
No Sales Charge   1.76   0.97   2.17   3.76  
Bloomberg Intermediate Index   2.05   1.41   2.04   4.04 (Class A)
                3.79 (Class C & Y)
                1.61 (Class F)
                3.49 (Class I)

 

Total return figures shown for the Fund reflect any change in price and assume all distributions, including capital gains, within the period were invested in additional shares. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund Shares. The rates of return will vary and the principal value of an investment will fluctuate with market conditions. Shares, if redeemed, may be worth more or less than their original cost. A portion of each class’s income may be subject to Federal and state income taxes. Past performance is not predictive of future investment results.

 

*     CDSC = 1% contingent deferred sales charge imposed on redemptions made within the first 12 months after purchase.

 

22  |  Aquila Municipal Trust

 

 
 
 

 

Aquila Tax-Free Fund For Utah

The following graph illustrates the value of $10,000 invested in the Class Y shares of Aquila Tax-Free Fund For Utah (the “Fund”) for the 10-year period ended March 31, 2024 as compared with the Bloomberg Municipal Bond: Quality Intermediate TR Unhedged Index† (the “Bloomberg Intermediate Index”) and the Consumer Price Index (a cost of living index). The performance of each of the other classes is not shown in the graph but is included in the table below. It should be noted that the Bloomberg Intermediate Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state-specific bond market performance for the limited number of states in which Aquila Tax-Free Fund For Utah may invest.

 

 

    Average Annual Total Return
for periods ended March 31, 2024		  
Class and Inception Date   1 Year   5 Years   10 Years   Since
Inception		  
Class A since 7/24/92                  
With Maximum Sales Charge   (1.29)%   (0.09)%   1.59%   4.00%  
Without Sales Charge   1.76   0.72   2.01   4.13  
Class C since 5/21/96                  
With CDSC*   0.06   (0.04)   1.21   2.98  
Without CDSC   1.05   (0.04)   1.21   2.98  
Class F since 11/30/18                  
No Sales Charge   2.21   1.06   N/A   1.67  
Class Y since 5/21/96                  
No Sales Charge   2.07   0.93   2.21   4.06  
Bloomberg Intermediate Index   2.05   1.41   2.04   4.07 (Class A)
                3.80 (Class C & Y)
                1.61 (Class F)

 

Total return figures shown for the Fund reflect any change in price and assume all distributions, including capital gains, within the period were invested in additional shares. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund Shares. The rates of return will vary and the principal value of an investment will fluctuate with market conditions. Shares, if redeemed, may be worth more or less than their original cost. A portion of each class’s income may be subject to Federal and state income taxes and/or the Federal Alternative Minimum Tax (“AMT”). Past performance is not predictive of future investment results.

 

*       CDSC = 1% contingent deferred sales charge imposed on redemptions made within the first 12 months after purchase.

 

 

23  |  Aquila Municipal Trust

 

 
 
 

 

                                                                                  

 

†Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Bloomberg does not approve or endorse this material or guarantee the accuracy or completeness of any information therein, nor does Bloomberg make any warranty, express or implied, as to results to be obtained therefrom, and, to the maximum extent allowed by the law, Bloomberg shall not have any liability or responsibility for any injury or damages arising in connection therewith.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24  |  Aquila Municipal Trust

 

 
 
 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Trustees and Shareholders of
Aquila Municipal Trust:

 

Opinion on the Financial Statements

 

We have audited the accompanying statement of assets and liabilities of Aquila Tax-Free Trust of Arizona, Aquila Tax-Free Fund of Colorado, Aquila Churchill Tax-Free Fund of Kentucky, Aquila Tax-Free Trust of Oregon, Aquila Narragansett Tax-Free Income Fund and Aquila Tax-Free Fund For Utah (the “Funds”), each a series of Aquila Municipal Trust (the “Trust”), including the schedule of investments, as of March 31, 2024, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of March 31, 2024, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the auditor for the Trust since 2005.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of the Funds’ internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2024 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

 

TAIT, WELLER & BAKER LLP

Philadelphia, Pennsylvania

May 30, 2024

 

 

 

 

25  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

SCHEDULE OF INVESTMENTS

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (36.3%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    City (11.5%)        
    Buckeye Jackrabbit Trail Sanitary Sewer Improvement District        
$ 123,000   6.250%, 01/01/29   NR/A/NR   $ 123,683
    Goodyear, Arizona        
2,000,000   3.000%, 07/01/40   Aa1/AA+/NR   1,747,600
    Goodyear McDowell Road Commercial Corridor Improvement District          
805,000   3.250%, 01/01/27 BAMAC Insured   Aa2/AA/NR   810,812
    Peoria, Arizona        
1,875,000   3.375%, 07/15/32   Aaa/AA+/AAA   1,879,387
2,000,000   2.000%, 07/15/35   Aaa/NR/AAA   1,624,020
3,235,000   2.000%, 07/15/36   Aaa/NR/AAA   2,555,973
2,000,000   2.000%, 07/15/39   Aaa/NR/AAA   1,440,300
    Scottsdale, Arizona        
1,500,000   4.000%, 07/01/40   Aaa/AAA/NR   1,532,025
    Tempe, Arizona        
2,000,000   5.000%, 07/01/24   NR/AAA/AAA   2,006,540
2,770,000   5.000%, 07/01/41   NR/AAA/AAA   3,119,519
    Tempe Improvement District (Pier Town Lake)        
1,000,000   5.000%, 01/01/29   Aa2/NR/NR   1,000,810
    Tucson, Arizona          
3,000,000   5.000%, 07/01/24   Aa3/AA/AAA   3,009,810
    Total City        20,850,479
             
    County (5.1%)        
    Maricopa Co. Special Health Care District          
1,500,000   5.000%, 07/01/27   Aa3/NR/AA-   1,598,955
3,000,000   5.000%, 07/01/32   Aa3/NR/AA-   3,236,820
1,500,000   5.000%, 07/01/34   Aa3/NR/AA-   1,609,680
    Yavapai Co. Jail District          
1,650,000   4.000%, 07/01/33 BAMAC Insured   NR/AA/AA   1,695,061
    Yuma Co. Free Library District          
1,000,000   4.000%, 07/01/29   Aa3/NR/AAA   1,011,410
    Total County       9,151,926
             

 

 

26  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    School District (17.9%)        
    Gila Co. Unified School District No. 10 (Payson)        
$ 1,000,000   5.000%, 07/01/28   Aa2/NR/NR   $ 1,002,850
    Maricopa Co. Elementary School District No. 1 (Phoenix)          
1,455,000   5.000%, 07/01/41 AGMC Insured   NR/AA/NR   1,607,077
    Maricopa Co. Elementary School District No. 40 (Glendale)          
2,050,000   2.000%, 07/01/35 AGMC Insured   NR/AA/AA+   1,655,641
    Maricopa Co. Elementary School District No. 59 (Laveen)          
1,120,000   5.000%, 07/01/26   Aa1/NR/NR   1,166,346
    Maricopa Co. Elementary School District No. 62 (Union)          
580,000   4.000%, 07/01/32 BAMAC Insured   NR/AA/NR   594,581
    Maricopa Co. Elementary School District No. 66 (Roosevelt)          
1,100,000   5.000%, 07/01/40 BAMAC Insured   Aa3/AA/NR   1,223,376
    Maricopa Co. Elementary School District No. 92 (Pendergast)          
2,000,000   5.000%, 07/01/35   Aa2/NR/AA+   2,346,440
    Maricopa Co. High School District No. 210 (Phoenix)          
2,000,000   5.000%, 07/01/26   Aa1/AA/AAA   2,087,200
    Maricopa Co. High School District No. 214 (Tolleson)          
2,000,000   5.000%, 07/01/24   Aaa/AA/NR   2,006,040
2,665,000   4.000%, 07/01/34   Aaa/AA/NR   2,781,061
    Maricopa Co. High School District No. 216 (Agua Fria)          
1,305,000   5.000%, 07/01/25   Aa1/NR/NR   1,334,115
4,000,000   5.000%, 07/01/41   Aa1/NR/NR   4,542,120
    Maricopa Co. Unified School District No. 11 (Peoria)          
1,480,000   4.000%, 07/01/25   Aa3/AA-/NR   1,480,444
    Maricopa Co. Unified School District No. 41 (Gilbert)          
1,265,000   4.000%, 07/01/24   Aa1/AA-/NR   1,266,316

 

 

27  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    School District (continued)        
    Maricopa Co. Unified School District No. 48 (Scottsdale)          
$ 2,350,000   3.000%, 07/01/34   Aa1/AA/NR   $ 2,241,594
    Maricopa Co. Unified School District No. 80 (Chandler)          
3,000,000   5.000%, 07/01/25   Aaa/NR/AAA   3,065,820
    Navajo Co. Unified School District No. 10 (Show Low)          
500,000   4.000%, 07/01/31 AGMC Insured   NR/AA/NR   513,460
    Navajo Co. Unified School District No. 32 (Blue Ridge)          
400,000   5.000%, 07/01/29 AGMC Insured   NR/AA/NR   422,692
    Pima Co. Unified School District No. 6 (Marana)        
1,000,000   4.000%, 07/01/37 AGMC Insured   NR/AA/NR   1,014,870
    Total School District       32,352,043
             
    Special District (1.8%)        
    Estrella Mountain Ranch Community Facilities District          
155,000   5.000%, 07/15/32 AGMC Insured   NR/AA/NR   163,026
    Goodyear Community Facilities Utilities District No. 1        
500,000   4.000%, 07/15/28   Aa2/A-/NR   500,860
    Mystic Lake Pleasant Heights Community Facilities District          
470,000   3.000%, 07/15/28 BAMAC Insured   NR/AA/NR   464,492
    Verrado Community Facilities District #1          
2,020,000   5.000%, 07/15/26 BAMAC Insured   NR/AA/NR   2,093,568
    Total Special District       3,221,946
    Total General Obligation Bonds        65,576,394
             

 

 

28  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (58.4%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Airport (10.9%)        
    Phoenix Civic Improvement Corp. Airport Bonds          
$ 1,420,000   5.000%, 07/01/32   Aa3/A+/NR   $ 1,510,355
3,500,000   4.000%, 07/01/40   Aa3/A+/NR   3,485,230
3,825,000   5.000%, 07/01/26 AMT   Aa2/AA-/NR   3,953,826
2,595,000   5.000%, 07/01/27 AMT   Aa2/AA-/NR   2,731,549
3,000,000   5.000%, 07/01/28 AMT   Aa2/AA-/NR   3,215,430
1,300,000   5.000%, 07/01/33 AMT   Aa3/A+/NR   1,400,048
3,450,000   4.000%, 07/01/38 AMT   Aa3/A+/NR   3,437,580
    Total Airport        19,734,018
             
    Charter Schools (1.3%)        
    Arizona Industrial Development Authority (Candeo Schools)          
500,000   3.375%, 07/01/41 State Enhanced   NR/AA-/NR   423,450
    Arizona Industrial Development Authority (Equitable Schools)          
1,000,000   5.000%, 11/01/28   NR/A/NR   1,065,490
    Arizona Industrial Development Authority (Greathearts Academies)        
1,000,000   3.000%, 07/01/37 State Enhanced   NR/AA-/NR   894,820
    Total Charter Schools        2,383,760
             
    Electric (4.3%)        
    Salt River Agricultural Improvement & Power District          
1,330,000   5.000%, 12/01/34   Aa1/AA+/NR   1,352,889
3,000,000   4.000%, 01/01/41   Aa1/AA+/NR   3,041,760
3,000,000   5.250%, 01/01/53   Aa1/AA+/NR   3,331,710
    Total Electric        7,726,359
             
    Excise Tax (4.1%)        
    Buckeye Excise Tax          
400,000   4.000%, 07/01/36   NR/AA+/AA   405,248
    Cottonwood Pledged Revenue Obligations          
500,000   5.000%, 07/01/30 AGMC Insured   NR/AA/NR   509,015

 

 

29  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Excise Tax (continued)        
    Flagstaff Pledged Revenue        
$ 1,395,000   4.250%, 07/01/33   NR/AA/NR   $ 1,430,628
    Phoenix Civic Improvement Corp. (Civic Plaza)        
2,000,000   5.500%, 07/01/27 BHAC/FGIC Insured   Aa1/AA+/NR   2,162,720
    Santa Cruz Co. Jail District          
1,655,000   5.000%, 07/01/28 AGMC Insured   NR/AA/NR   1,740,001
    Scottsdale Municipal Property Corp. (Aviation)          
1,100,000   5.000%, 07/01/28 AMT   Aa1/AAA/AA+   1,155,110
    Total Excise Tax        7,402,722
             
    Healthcare (2.8%)        
    Arizona Industrial Development Authority
(Phoenix Children's Hospital)		          
1,000,000   3.000%, 02/01/45   A1/A+/AA-   796,350
    Maricopa Co. Industrial Development Authority
(Banner Health)		          
2,000,000   5.000%, 01/01/53   NR/AA-/AA-   2,062,280
    Maricopa Co. Industrial Development Authority (HonorHealth)          
2,250,000   4.125%, 09/01/38   A2/NR/A+   2,264,782
    Total Healthcare        5,123,412
             
    Higher Education (6.8%)        
    Arizona Board of Regents (Arizona State University System) VRDO***          
5,320,000   3.600%, 07/01/34   Aa2/AA/NR   5,320,000
    Arizona Board of Regents (University of Arizona System) Speed Stimulus Plan for Economic & Educational Development          
1,000,000   3.125%, 08/01/39   Aa3/A+/NR   884,990
    Arizona Board of Regents (University of Arizona System)          
2,500,000   5.000%, 06/01/30   Aa2/AA-/NR   2,543,600
105,000   4.000%, 06/01/38   Aa2/AA-/NR   107,950

 

 

30  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Higher Education (continued)        
    Maricopa Co. Industrial Development Authority
(Creighton University)		          
$ 2,500,000   5.000%, 07/01/47   A2/NR/NR   $ 2,620,725
    Phoenix Industrial Development Authority
(Downtown Phoenix Student Housing)		          
750,000   5.000%, 07/01/42   Baa3/NR/NR   754,672
    Total Higher Education        12,231,937
             
    Housing (2.0%)        
    Arizona Industrial Development Authority Green Bond MTEB (Chandler Village Apartments Project)          
4,716,473   2.120%, 07/01/37 FNMA Insured Series 2020   Aaa/NR/NR   3,671,067
             
    Lease (1.8%)        
    Arizona Board of Regents (Northern Arizona University) COP          
600,000   5.000%, 09/01/27   A2/A/NR   600,954
    Nogales Municipal Development Authority, Inc.          
615,000   5.000%, 06/01/28 AGMC Insured   NR/AA/NR   639,643
2,000,000   4.000%, 06/01/39 AGMC Insured   NR/AA/NR   2,017,560
    Total Lease        3,258,157
             
    Pollution Control (0.6%)        
    Maricopa Co. Pollution Control (El Paso Electric Co.)          
375,000   3.600%, 02/01/40   Baa2/NR/BBB+   334,106
    Maricopa Co. Pollution Control
(Southern California Edison Co.)		          
1,000,000   2.400%, 06/01/35   A2/A-/A-   828,330
    Total Pollution Control        1,162,436
             

 

 

31  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Resource Recovery (2.6%)        
    Chandler Industrial Development Authority (Intel Corporation Project)          
$ 4,055,000   5.000%, 09/01/52 AMT   A3/A-/NR   $ 4,179,570
    Yavapai Co. Industrial Development Authority,
(Waste Management Inc. Project)		          
520,000   2.200%, 03/01/28 AMT (Mandatory Put Date 06/03/24)   NR/A-/NR   518,180
    Total Resource Recovery        4,697,750
             
    Sales Tax (3.1%)        
    Arizona Sports & Tourism Authority (Multipurpose Stadium
Facility Project)		          
5,000,000   5.000%, 07/01/30 BAMAC Insured   A1/AA/A   5,514,150
             
    Senior Living Facilities (1.2%)        
    Arizona Industrial Development Authority, Second Tier
(Great Lakes Senior Living Communities) †††		          
620,000   5.000%, 01/01/28   NR/D/NR   497,779
555,000   5.000%, 01/01/29   NR/D/NR   417,249
1,205,000   5.000%, 01/01/30   NR/D/NR   879,939
655,000   4.000%, 01/01/33   NR/D/NR   391,972
    Total Senior Living Facilities       2,186,939
             
    Transportation (3.1%)        
    Arizona State Transportation Board Highway Revenue Refunding        
3,500,000   5.000%, 07/01/25   Aa1/AA+/NR   3,577,630
1,905,000   5.000%, 07/01/33   Aa1/AA+/NR   1,979,619
    Total Transportation        5,557,249
             

 

 

32  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Utility (6.4%)        
    Greater Arizona Development Authority Revenue          
$ 305,000   5.000%, 08/01/28 AGMC Insured   A1/AA+/NR   $ 305,192
    Mesa Utility System        
2,150,000   4.000%, 07/01/32   Aa2/AA-/NR   2,187,840
5,000,000   5.000%, 07/01/36   Aa3/A+/NR   5,904,900
    Salt Verde Finance Corp. Gas Revenue          
3,000,000   5.250%, 12/01/28   A3/BBB+/NR   3,139,080
    Total Utility        11,537,012
             
    Water/Sewer (7.4%)        
    Phoenix Civic Improvement Corp. Junior Lien Water System Revenue        
3,000,000   5.000%, 07/01/36 Series 2016   Aa2/AAA/NR   3,104,820
1,730,000   5.000%, 07/01/36 Series 2020A   Aa2/AAA/NR   1,941,250
1,315,000   5.000%, 07/01/37 Series 2020A   Aa2/AAA/NR   1,465,160
6,365,000   5.000%, 07/01/45 Series 2021A   Aa2/AAA/NR   6,944,915
    Total Water/Sewer        13,456,145
    Total Revenue Bonds        105,643,114
             
    Pre-Refunded Bonds\Escrowed to Maturity Bonds (2.0%)††        
    Pre-Refunded General Obligation\Escrowed to Maturity
Bonds (2.0%)		        
    City (0.7%)        
    Tempe, Arizona        
1,295,000   3.750%, 07/01/34   NR/NR/NR*   1,302,045
             
    State (1.3%)        
    Arizona State COP        
2,220,000   5.000%, 10/01/24 ETM   Aa2/AA-/NR   2,235,851
    Total Pre-Refunded Bonds\Escrowed to Maturity Bonds        3,537,896
    Total Municipal Bonds
(cost $177,499,938)		        174,757,404
             

 

 

33  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Shares   Short-Term Investment (2.3%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
4,238,429   Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.20%** (cost $4,238,429)   Aaa-mf/AAAm/NR   $ 4,238,429
             
    Total Investments
(cost $181,738,367-note 4)		   99.0%    178,995,833
    Other assets less liabilities   1.0    1,751,053
    Net Assets   100.0%   $180,746,886

 

 

 

Portfolio Distribution By Quality Rating (unaudited)   Percentage of
Investments†
Aaa of Moody's or AAA of S&P or Fitch   26.6%
Pre-refunded bonds\ ETM bonds††   2.0
Aa of Moody's or AA of S&P or Fitch   60.8
A of Moody's or S&P or Fitch   8.8
Baa of Moody's or BBB of Fitch   0.6
D of S&P   1.2
    100.0%

 

 

PORTFOLIO ABBREVIATIONS

AGMC - Assured Guaranty Municipal Corp.

AMT - Alternative Minimum Tax

BAMAC - Build America Mutual Assurance Co.

BHAC - Berkshire Hathaway Assurance Corp.

COP- Certificates of Participation

ETM - Escrowed to Maturity

FGIC - Financial Guaranty Insurance Co.

FNMA - Federal National Mortgage Association

MTEB - Multifamily Tax-Exempt Mortgage-Backed Bonds

NR - Not Rated

VRDO - Variable Rate Demand Obligation

 

 

 

 

 

 

 

 

34  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

 

* Any security not rated (“NR”) by any of the Nationally Recognized Statistical Rating Organizations (“NRSRO”) has been determined by the Investment Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a NRSRO.
   
** The rate is an annualized seven-day yield at period end.
   
*** Variable rate demand obligations (“VRDOs”) are payable upon demand within the same day for securities with daily liquidity or seven days for securities with weekly liquidity.
   
† Where applicable, calculated using the highest rating of the three NRSRO.  Percentages in this table do not include the Short-Term Investment.
   
†† Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date.  Escrowed to Maturity bonds are bonds where money has been placed in the escrow account which is used to pay principal and interest through the bond’s originally scheduled maturity date. Escrowed to Maturity are shown as ETM.  All other securities in the category are pre-refunded.
   
††† Illiquid securities: Represents 1.2% of net assets.

 

 

 

 

 

 

 

 

 

 

 

 

35  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

SCHEDULE OF INVESTMENTS

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (42.2%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Lease (0.8%)        
    Colorado State Rural COP        
$1,000,000   4.000%, 12/15/35 Series 2020A   Aa2/AA-/NR   $ 1,041,340
             
    Metropolitan District (3.8%)        
    Denver, Colorado Urban Renewal Authority, Tax Increment Revenue,
Stapleton Senior		        
2,600,000   5.000%, 12/01/25 Series A-1   NR/NR/AA-   2,601,976
    Midcities Metropolitan District No.2 Colorado, Special Revenue        
2,365,000   5.000%, 12/01/31 Series 2022 AGMC Insured   A1/AA/NR   2,647,712
    Total Metropolitan District        5,249,688
             
    School Districts (36.1%)        
    Adams 12 Five Star Schools, Colorado        
1,000,000   5.000%, 12/15/29   Aa1/AA/NR   1,048,580
1,000,000   5.500%, 12/15/31   Aa1/AA/NR   1,129,400
    Adams & Weld Counties, Colorado School District #27J        
2,000,000   5.000%, 12/01/24   Aa2/AA/NR   2,001,920
1,000,000   5.000%, 12/01/25   Aa2/AA/NR   1,010,740
3,400,000   5.000%, 12/01/42 Series 2017   Aa2/AA/NR   3,550,314
    Boulder, Larimer & Weld Counties, Colorado Series C        
2,000,000   5.000%, 12/15/28   Aa1/AA+/NR   2,103,540
    Boulder Valley, Colorado School District No. RE-2        
2,500,000   5.000%, 12/01/36 Series 2023   Aa1/AA+/NR   2,925,975
    Costilla County, Colorado School District No. R-30 Sierra Grande        
2,180,000   5.000%, 12/01/32   Aa2/NR/NR   2,436,128
    Denver, Colorado City & County School District No. 1        
2,000,000   5.000%, 12/01/29   Aa1/AA+/AA+   2,101,280
    Denver, Colorado City & County School District No. 1        
2,000,000   5.000%, 12/01/25 Series B   Aa1/AA+/AA+   2,021,480

 

 

36  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    School Districts (continued)        
    Eagle County School District, Colorado, Eagle, Garfield &
Routt School District #50J		        
$1,000,000   5.000%, 12/01/29   Aa1/AA/NR   $ 1,050,640
1,750,000   5.000%, 12/01/40 Series 2024   Aa1/NR/NR   1,990,450
    El Paso County, Colorado School District #2, Harrison        
2,000,000   5.000%, 12/01/31   Aa2/AA/NR   2,190,160
    El Paso County, Colorado School District #20 Refunding        
2,255,000   5.000%, 12/15/29   Aa1/NR/NR   2,369,937
    Fremont County, Colorado School District #RE-1, Canon City        
500,000   5.000%, 12/01/41 Series 2024   Aa2/NR/NR   559,380
    Gunnison Watershed, Colorado School District #RE-1J        
1,100,000   5.000%, 12/01/40   Aa2/NR/NR   1,239,777
    Jefferson County, Colorado School District #R-1 Refunding        
2,225,000   5.000%, 12/15/30   Aa1/AA/NR   2,385,222
2,600,000   5.000%, 12/15/31   Aa1/AA/NR   2,863,432
    Larimer County, Colorado School District No. R 1 Poudre        
1,000,000   5.000%, 12/15/30   Aa1/NR/AA+   1,100,050
    Larimer, Weld & Boulder Counties, Colorado School District
No. R-2J, Thompson		        
520,000   5.000%, 12/15/34   Aa2/AA/NR   568,641
3,375,000   5.000%, 12/15/35   Aa2/AA/NR   3,676,658
    Larimer, Weld & Boulder Counties, Colorado School District
No. R-2J, Thompson Refunding		        
1,500,000   4.250%, 12/15/24   Aa2/NR/NR   1,500,540
    Mesa County, Colorado School District No. 50        
425,000   5.000%, 12/01/41 Series 2024   Aa2/NR/NR   471,797
370,000   5.000%, 12/01/42 Series 2024   Aa2/NR/NR   408,954

 

 

37  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    School Districts (continued)        
    Park County, Colorado School District No. 1, Platte Canyon        
$ 700,000   5.000%, 12/01/43 Series 2024   Aa2/NR/NR   $ 771,778
    Pueblo County, Colorado School District No. 60        
1,000,000   5.000%, 12/15/38 Series 2020   Aa2/AA/NR   1,087,700
    Pueblo County, Colorado School District No. 70        
1,500,000   4.000%, 12/01/33 Series 2021A   Aa2/AA/NR   1,591,815
    San Miguel County, Colorado School District No. R-1, Telluride        
1,000,000   5.000%, 12/01/41 Series 2024   Aa1/NR/NR   1,131,880
    Weld County, Colorado School District No. RE-4        
1,655,000   5.000%, 12/01/39 Series 2023   Aa2/AA/NR   1,882,132
    Total School Districts        49,170,300
             
    Special District (0.6%)        
    Basalt & Rural Fire Protection District, Eagle & Pitkin Counties        
750,000   5.000%, 12/01/40 Series 2024A   NR/AA/NR   837,930
             
    Water & Sewer (0.9%)        
    Central Colorado Water Conservancy District, Adams Morgan &
Weld Counties		        
1,185,000   5.000%, 12/01/24   NR/A/NR   1,186,102
    Total General Obligation Bonds        57,485,360
             
    Revenue Bonds (50.1%)        
    City (1.1%)        
    Grand Junction, Colorado General Fund        
1,350,000   5.000%, 03/01/41   NR/AA/NR   1,519,830
             
    Healthcare (5.2%)        
    Colorado Health Facilities Authority, National Jewish Health - St. Joseph Hospital Center Outpatient Health LLC        
1,200,000   4.000%, 01/01/39 Series 2019   NR/AA/NR   1,189,632

 

 

38  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Healthcare (continued)        
    Colorado Health Facilities Authority, Sanford        
$1,000,000   5.000%, 11/01/32 Series 2019A   NR/A+/AA-   $ 1,096,260
2,165,000   5.000%, 11/01/34 Series 2019A   NR/A+/AA-   2,372,061
    Southeast Colorado Hospital District Enterprise, Anticipation Notes        
2,500,000   5.000%, 02/01/25 Series 2023   NR/NR/NR*   2,486,200
    Total Healthcare        7,144,153
             
    Higher Education (5.3%)          
    Colorado Educational & Cultural Facility Authority,
University of Denver Project		        
2,130,000   5.250%, 03/01/25 NPFG Insured   A1/A+/NR   2,157,243
    Colorado Educational & Cultural Facility Authority Refunding,
University of Denver Project		        
1,000,000   5.250%, 03/01/26 NPFG Insured   A1/A+/NR   1,033,480
    Colorado School of Mines Institutional Enterprise        
700,000   5.000%, 12/01/38 Series 2023C   A1/A+/NR   800,884
1,000,000   5.000%, 12/01/43 Series 2024A SHEIP Insured   Aa2/AA/NR   1,122,210
    Colorado State Board Community Colleges & Occupational Education, Refunding & Improvement, Arapahoe Community College        
1,000,000   5.000%, 11/01/30 Series 2017A   Aa3/NR/NR   1,072,410
    University of Northern Colorado Greeley Institutional Enterprise Refunding        
1,000,000   5.000%, 06/01/25 Series A SHEIP Insured   Aa2/AA/NR   1,002,080
    Total Higher Education        7,188,307
             

 

 

39  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Lease (17.3%)        
    Adams County, Colorado School District No. 1 Mapleton COP        
$1,165,000   5.000%, 12/01/33 Series 2023 BAMAC Insured   A2/AA/NR   $ 1,365,601
1,335,000   5.000%, 12/01/36 Series 2023 BAMAC Insured   A2/AA/NR   1,526,252
    Colorado State BEST COP        
2,500,000   5.000%, 03/15/31 Series K   Aa2/AA-/NR   2,631,300
    Colorado State BEST COP        
2,000,000   5.000%, 03/15/31 Series M   Aa2/AA-/NR   2,154,160
    Colorado State Higher Education Capital Construction Lease        
1,690,000   5.000%, 11/01/26   Aa2/AA-/NR   1,775,227
    Denver, Colorado City & County COP, Convention Center Expansion Project        
1,500,000   5.000%, 06/01/30 Series 2018A   Aa2/AA+/AA+   1,556,250
    Denver, Colorado City & County COP (Fire Station & Library Facilities)        
1,065,000   5.000%, 12/01/25   Aa1/AA+/AA+   1,096,993
    Denver, Colorado City & County COP (Wellington E. Webb
Municipal Office Building)		        
1,000,000   5.000%, 12/01/36 Series 2023   Aa1/AA+/AA+   1,173,140
1,715,000   5.000%, 12/01/37 Series 2023   Aa1/AA+/AA+   1,991,887
    Douglas County, Colorado COP (Libraries)        
1,570,000   5.000%, 12/01/27   Aa2/NR/NR   1,584,680
    Foothills Park and Recreation District, Colorado COP        
1,405,000   4.000%, 12/01/35 Series 2021   NR/AA-/NR   1,475,686
    Foothills Park and Recreation District, Colorado COP Refunding & Improvement        
1,380,000   5.000%, 12/01/26 AGMC Insured   NR/AA/NR   1,418,516
    Fort Lupton, Colorado COP        
500,000   5.000%, 12/01/33 Series 2023   NR/A+/NR   553,300
    Frisco, Colorado Financial Authority COP        
750,000   5.000%, 12/01/37 Series 2023   Aa2/NR/NR   833,902

 

 

40  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Lease (continued)        
    Telluride, Colorado COP        
$ 945,000   5.000%, 12/01/43 Series 2024   NR/AA-/NR   $ 1,039,481
    Thompson School District No R2-J (Larimer, Weld And Boulder Counties, Colorado COP        
750,000   4.500%, 12/01/26 Series 2014   A1/NR/NR   753,990
    Westminster, Colorado COP (Municipal Courthouse Project)        
500,000   5.000%, 12/01/37 Series 2023   NR/AA/NR   570,830
    Total Lease        23,501,195
             
    Sales Tax (3.9%)        
    City of Fruita, Colorado Sales & Use Tax          
1,110,000   4.000%, 10/01/33   NR/AA-/NR   1,144,787
    Commerce City, Colorado Sales & Use Tax        
1,000,000   5.000%, 08/01/26 BAMAC Insured   Aa2/AA/NR   1,022,080
    Denver, Colorado City & County Dedicated Tax Revenue        
2,000,000   5.000%, 08/01/42 Series 2016A   Aa3/AA-/AA-   2,047,300
1,000,000   4.000%, 08/01/36 Series 2021A   Aa3/AA-/AA-   1,047,870
    Total Sales Tax        5,262,037
             
    Tax Increment (1.1%)        
    Park Creek, Colorado Metropolitan District Senior Limited Property
Tax Supported		        
1,475,000   4.000%, 12/01/35 AGMC Insured   NR/AA/A   1,512,598
             
    Transportation (2.7%)        
    E-470 Public Highway Authority, Colorado Senior Revenue        
1,500,000   5.000%, 09/01/35 Series 2020A   A1/A+/NR   1,690,875
    Regional Transportation District, Colorado COP        
2,000,000   5.000%, 06/01/26 Series A   A1/AA/AA-   2,033,960
    Total Transportation        3,724,835
             

 

 

41  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Utilities (6.4%)        
    Colorado Springs, Colorado Utilities Revenue, Refunding        
$1,000,000   5.000%, 11/15/27 Series A   Aa2/AA+/AA   $ 1,028,150
    Colorado Springs, Colorado Utilities Revenue Refunding        
450,000   5.000%, 11/15/33 Series 2022B   Aa2/AA+/NR   527,755
450,000   5.000%, 11/15/34 Series 2022B   Aa2/AA+/NR   526,135
    Colorado Springs, Colorado Utilities System Improvement Revenue        
1,500,000   5.000%, 11/15/39 Series 2023A   Aa2/AA+/NR   1,716,345
    Colorado Springs, Colorado Utilities System Revenue Refunding        
1,000,000   5.000%, 11/15/38 Series 2023B   Aa2/AA+/NR   1,146,840
1,000,000   5.000%, 11/15/39 Series 2023B   Aa2/AA+/NR   1,144,230
    Fort Collins, Colorado Electric Utility Enterprise Revenue        
2,240,000   5.000%, 12/01/37 Series 2023   NR/AA-/AA-   2,567,331
    Total Utilities        8,656,786
             
    Water & Sewer (7.1%)        
    Arapahoe, Colorado Water & Wastewater Public Improvement District        
1,020,000   5.000%, 12/01/25   NR/AA-/NR   1,030,955
    Arvada, Colorado Wastewater Enterprise        
1,090,000   5.000%, 12/01/35   NR/AA-/AA   1,281,644
    Arvada, Colorado Water Enterprise        
1,355,000   5.000%, 12/01/35   NR/AA+/AA+   1,590,946
    Broomfield, Colorado Sewer and Waste Water          
1,550,000   5.000%, 12/01/24 AGMC Insured   Aa3/AA/NR   1,551,689
    Grand Junction, Colorado Sewer System          
485,000   5.000%, 12/01/41 Series 2024 BAMAC Insured   NR/AA/NR   544,708
400,000   5.000%, 12/01/42 Series 2024 BAMAC Insured   NR/AA/NR   447,284
840,000   5.000%, 12/01/43 Series 2024 BAMAC Insured   NR/AA/NR   934,786

 

 

42  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Water & Sewer (continued)        
    Snake River Water District, Colorado Water Activity Enterprise Revenue Refunding & Improvement          
$2,000,000   5.000%, 03/01/39 Series 2024 BAMAC Insured   NR/AA/NR   $ 2,252,160
    Total Water & Sewer        9,634,172
    Total Revenue Bonds        68,143,913
             
    Pre-Refunded Bonds (3.1%)††        
    Pre-Refunded Revenue Bonds (3.1%)        
    Higher Education (2.0%)          
    University of Colorado Enterprise System, Series A        
2,620,000   5.000%, 06/01/29   Aa1/NR/AA+   2,670,645
             
    Lease (1.1%)        
    Rangeview Library District Project, Colorado COP        
1,515,000   5.000%, 12/15/27 AGMC Insured   Aa2/AA/NR   1,560,783
    Total Pre-Refunded Bonds        4,231,428
    Total Municipal Bonds
(cost $129,270,937)		        129,860,701
             
Shares   Short-Term Investment (3.5%)        
4,737,121   Dreyfus Treasury Obligations Cash Management - Institutional Shares,
5.20%* (cost $4,737,121)		   Aaa-mf/AAAm/NR   4,737,121
             
    Total Investments
(cost $134,008,058 - note 4)		   98.9%    134,597,822
    Other assets less liabilities   1.1    1,473,190
    Net Assets   100.0%   $ 136,071,012

 

 

 

43  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

 

Portfolio Distribution By Quality Rating (unaudited)   Percentage of
Investments†
Prerefunded bonds††   3.3%
Aa of Moody's or AA of S&P or Fitch   88.5
A of Moody's or S&P   6.3
Not Rated*   1.9
    100.0%

 

 

PORTFOLIO ABBREVIATIONS

AGMC - Assured Guaranty Municipal Corp.

BAMAC - Build America Mutual Assurance Company

BEST - Building Excellent Schools Today

COP - Certificates of Participation

NPFG - National Public Finance Guarantee

NR - Not Rated

SHEIP - State Higher Education Intercept Program

 

 

* The rate is an annualized seven-day yield at period end.
   
** Any security not rated (“NR”) by any of the Nationally Recognized Statistical Rating Organizations (“NRSRO”) has been determined by the Investment Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a NRSRO.
   
† Where applicable, calculated using the highest rating of the three NRSRO.  Percentages in this table do not include the Short-Term Investment.
   
†† Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date.

 

 

See accompanying notes to financial statements.

 

44  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

SCHEDULE OF INVESTMENTS

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (4.1%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Bowling Green, Kentucky        
$ 500,000   2.000%, 09/01/44 Series 2021A   Aa1/NR/NR   $ 328,245
    Lexington-Fayette Urban County, Kentucky        
3,350,000   4.000%, 09/01/29   Aa2/AA/NR   3,355,192
    Newport, Kentucky        
620,000   2.000%, 02/01/38 Series 2021 AGMC Insured   NR/AA/NR   468,639
    Rowan County, Kentucky        
835,000   4.000%, 06/01/30 AGMC Insured   A1/AA/NR   849,521
865,000   4.000%, 06/01/31 AGMC Insured   A1/AA/NR   878,797
    Warren County, Kentucky        
695,000   1.750%, 12/01/35 Series 2020   Aa1/NR/NR   548,557
    Total General Obligation Bonds        6,428,951
             
    Revenue Bonds (88.5%)        
     State Agency (21.5%)         
    Kentucky Asset & Liability Commission Federal Highway Notes        
2,000,000   5.000%, 09/01/26 Series A   A2/AA/A+   2,009,360
1,000,000   5.000%, 09/01/27 Series A   A2/AA/A+   1,020,100
    Kentucky Rural Water Finance Corp.        
255,000   4.500%, 08/01/24 NPFG Insured   Baa2/AA-/NR   255,105
290,000   4.500%, 08/01/27 NPFG Insured   Baa2/AA-/NR   290,241
245,000   4.600%, 08/01/28 NPFG Insured   Baa2/AA-/NR   245,208
315,000   4.625%, 08/01/29 NPFG Insured   Baa2/AA-/NR   315,287
175,000   4.000%, 02/01/28 Series 2012C   NR/AA-/NR   175,091
100,000   4.000%, 02/01/29 Series 2012C   NR/AA-/NR   100,053
120,000   4.000%, 02/01/26 Series 2012F   NR/AA-/NR   120,050
125,000   4.000%, 02/01/27 Series 2012F   NR/AA-/NR   125,061
130,000   4.000%, 02/01/28 Series 2012F   NR/AA-/NR   130,068
140,000   4.000%, 02/01/29 Series 2012F   NR/AA-/NR   140,074
265,000   2.000%, 02/01/35 Series 2020I   NR/AA-/NR   216,619
475,000   2.000%, 02/01/36 Series 2020I   NR/AA-/NR   379,012
280,000   2.000%, 02/01/37 Series 2020I   NR/AA-/NR   213,346
615,000   3.000%, 08/01/31 Series 2021D   NR/AA-/NR   597,048
625,000   3.000%, 08/01/32 Series 2021D   NR/AA-/NR   602,244
580,000   3.000%, 08/01/33 Series 2021D   NR/AA-/NR   557,229

 

 

45  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    State Agency (continued)         
    Kentucky State Office Building COP        
$ 2,250,000   4.000%, 04/15/27   A1/NR/NR   $ 2,300,242
1,640,000   5.000%, 06/15/34   A1/NR/NR   1,658,876
     Kentucky State Property and Buildings Commission        
3,000,000   5.000%, 08/01/33 Project 108   A1/A/AA-   3,040,020
5,000,000   5.000%, 08/01/32 Project 110   A1/A/AA-   5,073,850
2,040,000   5.000%, 11/01/27 Project 112   A1/A/AA-   2,136,268
1,425,000   5.000%, 11/01/28 Project 112   A1/A/AA-   1,489,723
2,500,000   5.000%, 02/01/31 Project 112   A1/A/AA-   2,567,950
1,400,000   4.000%, 10/01/30 Project 114   A1/A/AA-   1,435,238
1,000,000   5.000%, 04/01/29 Project 115   A1/A/AA-   1,053,420
2,000,000   5.000%, 05/01/30 Project 117   A1/NR/AA-   2,111,160
500,000   5.000%, 05/01/36 Project 117   A1/NR/AA-   527,415
1,015,000   5.000%, 05/01/25 Project 119   A1/A/AA-   1,030,966
1,750,000   4.000%, 11/01/37 Project 122A   A1/NR/AA-   1,764,105
    Total State Agency        33,680,429
             
     Airports (2.7%)         
    Louisville, Kentucky Regional Airport Authority        
2,325,000   5.000%, 07/01/26 AMT   NR/A+/A+   2,328,232
1,895,000   5.000%, 07/01/27 Series A AMT   NR/A+/A+   1,898,430
    Total Airports        4,226,662
             
     City (1.3%)         
    River City Parking Authority of River City, Inc., Kentucky First
Mortgage Refunding		        
780,000   2.000%, 12/01/33 Series 2021A   Aa3/AA-/NR   665,106
800,000   2.000%, 12/01/34 Series 2021A   Aa3/AA-/NR   670,824
810,000   2.000%, 12/01/35 Series 2021A   Aa3/AA-/NR   664,589
    Total City        2,000,519
             

 

 

46  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
     City & County (0.5%)         
    Louisville & Jefferson County Visitors & Convention Commission
(Kentucky International Convention Center Expansion Project)		        
$ 1,000,000   3.125%, 06/01/41 Series 2016   Aa3/A/NR   $ 861,190
             
     Excise Tax (1.1%)         
    Kentucky Bond Development Corp. Transient Room Tax Revenue
(Lexington Center Corporation) Subordinate		        
1,585,000   5.000%, 09/01/27 Series 2018B   A3/NR/NR   1,667,246
             
     Healthcare (4.7%)         
    City of Ashland, Kentucky, Medical Center (King's Daughter)        
1,000,000   4.000%, 02/01/36 Series 2016A   A3/A-/A   992,690
460,000   5.000%, 02/01/31 Series 2019   A3/A-/A   485,130
450,000   5.000%, 02/01/32 Series 2019   A3/A-/A   473,944
2,600,000   3.000%, 02/01/40 Series 2019 AGMC Insured   A1/AA/A   2,236,598
    Louisville & Jefferson County, Kentucky Metropolitan Government Health System, Norton Healthcare, Inc.        
2,500,000   5.000%, 10/01/31 Series A   NR/A/A+   2,580,750
    Warren County, Kentucky, Warren County Community Hospital Corp.        
680,000   4.000%, 10/01/29   NR/AA-/NR   680,415
    Total Healthcare        7,449,527
             
     Higher Education (14.5%)         
    Boyle County, Kentucky Educational Facilities Refunding (Centre College)        
2,050,000   5.000%, 06/01/28 Series 2017   A3/A/NR   2,148,051
1,000,000   5.000%, 06/01/29 Series 2017   A3/A/NR   1,046,920

 

 

47  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
     Higher Education (continued)         
    Eastern Kentucky University General Receipts        
$ 1,230,000   5.000%, 10/01/30 Series A   A1/NR/NR   $ 1,322,459
870,000   4.500%, 04/01/32 Series A   A1/NR/NR   875,203
    Kentucky Bond Development Corp. Educational Facilities, City of Danville (Centre College)        
305,000   4.000%, 06/01/34 Series 2021   A3/A/NR   316,273
    Kentucky Bond Development Corp. Educational Facilities Revenue Refunding, City of Stamping Ground (Transylvania University Project)        
645,000   3.000%, 03/01/38 Series 2021A   NR/A-/NR   564,743
    Kentucky Bond Development Corp. Industrial Building Revenue, City of Stamping Ground (Transylvania University Project)        
510,000   4.000%, 03/01/33 Series 2019B   NR/A-/NR   517,946
610,000   4.000%, 03/01/34 Series 2019B   NR/A-/NR   618,839
    Kentucky State University COP        
300,000   4.000%, 11/01/34 Series 2021 BAMI Insured   NR/AA/NR   317,511
310,000   4.000%, 11/01/36 Series 2021 BAMI Insured   NR/AA/NR   322,760
740,000   4.000%, 11/01/38 Series 2021 BAMI Insured   NR/AA/NR   756,635
    Louisville & Jefferson County, Kentucky Metropolitan Government College Improvement (Bellarmine University Project)        
2,270,000   5.000%, 05/01/33   Ba3/NR/NR   2,153,435
    Morehead State University, Kentucky General Receipts        
1,000,000   5.000%, 04/01/29 Series A   A1/NR/NR   1,015,340
1,000,000   4.000%, 04/01/31 Series A   A1/NR/NR   1,010,230
    Murray State University Project, Kentucky General Receipts        
1,850,000   4.500%, 03/01/30 Series A   A1/NR/NR   1,865,707
1,230,000   3.000%, 09/01/35 Series 2022A   A1/NR/NR   1,162,891

 

 

48  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
     Higher Education (continued)         
    Northern Kentucky University, Kentucky General Receipts        
$ 990,000   3.000%, 09/01/40 Series A AGMC Insured   A1/AA/NR   $ 843,351
    University of Kentucky COP        
1,000,000   4.000%, 05/01/39 2011 Series 2019A   Aa3/AA/NR   1,007,220
    University of Kentucky, Kentucky General Receipts        
2,715,000   3.000%, 04/01/39 Series A   Aa2/AA+/NR   2,432,912
    University of Louisville, Kentucky General Receipts        
1,235,000   3.000%, 09/01/32 Series 2021B BAMI Insured   A1/AA/NR   1,189,070
1,275,000   3.000%, 09/01/33 Series 2021B BAMI Insured   A1/AA/NR   1,218,543
    Total Higher Education        22,706,039
             
     Housing (1.9%)         
    Kentucky Housing Corp. Multifamily (Churchill Park)        
3,000,000   4.650%, 05/01/25 144A   NR/NR/NR*   3,000,240
             
     Local Public Property (5.9%)         
    Jefferson County, Kentucky Capital Projects        
1,605,000   4.375%, 06/01/28 AGMC Insured   A1/NR/AA+   1,606,701
1,050,000   4.375%, 06/01/27 Series A AGMC Insured   A1/NR/AA+   1,051,018
    Kentucky Association of Counties Finance Corp. Financing Program        
180,000   4.000%, 02/01/25   NR/AA-/NR   180,029
365,000   5.000%, 02/01/25 Series B   NR/AA-/NR   368,920
385,000   5.000%, 02/01/26 Series B   NR/AA-/NR   396,049
380,000   3.000%, 02/01/30 Series C   NR/AA-/NR   367,654
460,000   3.000%, 02/01/32 Series D   NR/AA-/NR   441,710
470,000   3.000%, 02/01/33 Series D   NR/AA-/NR   449,217
1,210,000   3.000%, 02/01/38 Series E   NR/AA-/NR   1,089,714

 

 

49  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Local Public Property (continued)         
    Kentucky Bond Corp. Financing Program        
$ 575,000   2.000%, 02/01/37 2021 First Series A   NR/AA-/NR   $ 441,163
590,000   2.000%, 02/01/38 2021 First Series A   NR/AA-/NR   433,951
600,000   2.000%, 02/01/39 2021 First Series A   NR/AA-/NR   428,256
1,295,000   4.000%, 02/01/34 2023 First Series A   NR/AA-/NR   1,364,852
730,000   3.000%, 02/01/41 2020 Series F   NR/AA-/NR   618,252
    Total Local Public Property        9,237,486
             
    School Building (21.7%)         
    Adair County, Kentucky School District Finance Corp.        
1,495,000   4.250%, 09/01/36 Series 2023   A1/NR/NR   1,569,301
    Anderson County, Kentucky School District Finance Corp.        
1,015,000   4.125%, 02/01/32 Series 2023   A1/NR/NR   1,067,080
    Beechwood, Kentucky Independent School District Finance Corp.        
645,000   4.000%, 08/01/31 Series 2022   A1/NR/NR   667,710
    Bullitt County, Kentucky School District Finance Corp.        
970,000   1.875%, 12/01/36 Series 2020   A1/NR/NR   748,704
    Campbellsville, Kentucky Independent School District Finance Corp.        
870,000   4.000%, 08/01/36 Series 2023   A1/NR/NR   888,279
    Christian County, Kentucky School District Finance Corp.        
2,000,000   4.000%, 10/01/37 Series 2023 AGMC Insured   A1/AA/NR   2,098,420
    Fayette County, Kentucky School District Finance Corp.        
3,000,000   5.000%, 08/01/31   Aa3/AA-/NR   3,039,630
    Hopkins County, Kentucky School District Finance Corp.        
1,500,000   2.000%, 02/01/39 Series 2021   A1/NR/NR   1,089,300

 

 

50  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    School Building (continued)         
    Jefferson County, Kentucky School District Finance Corp.          
$ 1,075,000   4.500%, 04/01/32 Series A   Aa3/AA-/NR   $ 1,091,372
4,000,000   4.000%, 07/01/26 Series B   Aa3/AA-/NR   4,002,400
    Johnson County, Kentucky School District Finance Corp.          
1,080,000   4.000%, 04/01/32 Series 2023   A1/NR/NR   1,142,878
    Kenton County, Kentucky School District Finance Corp.        
2,040,000   3.000%, 02/01/31 Series 2022   A1/NR/NR   1,989,510
1,080,000   4.000%, 08/01/37 Series 2023A   A1/NR/NR   1,107,929
    Lewis County, Kentucky School District Finance Corp.        
1,600,000   2.000%, 02/01/39 Series 2021   A1/NR/NR   1,124,128
    Logan County, Kentucky School District Finance Corp.,
Energy Conservation Revenue Bonds		        
575,000   4.000%, 04/01/33 Series 2016   A1/NR/NR   584,240
615,000   4.000%, 04/01/34 Series 2016   A1/NR/NR   624,520
    Madison County, Kentucky School District Finance Corp. School Building        
1,460,000   4.000%, 02/01/38 Series 2024   Aa3/NR/NR   1,485,973
    Powell County, Kentucky School District Finance Corp. School Building        
1,235,000   4.000%, 02/01/39 Series 2024   A1/NR/NR   1,226,454
    Pulaski County, Kentucky School District Finance Corp. School Building        
1,510,000   4.125%, 06/01/34 Series 2023   A1/NR/NR   1,584,564
    Scott County, Kentucky School District Finance Corp. School Building        
1,000,000   4.000%, 02/01/32   Aa3/NR/NR   1,050,400
    Shelby County, Kentucky School District Finance Corp. School Building        
3,200,000   4.000%, 02/01/28   A1/NR/NR   3,267,968
2,440,000   4.000%, 02/01/29   A1/NR/NR   2,497,608
    Total School Building        33,948,368
             

 

 

51  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
     Student Loan (2.5%)         
     Kentucky Higher Education Student Loan        
$ 400,000   5.000%, 06/01/24 Senior Series A AMT   NR/AAA/A   $ 400,408
600,000   5.000%, 06/01/26 Senior Series A AMT   NR/A/A   613,620
270,000   4.000%, 06/01/34 Senior Series A AMT   NR/A/A   266,436
750,000   5.000%, 06/01/28 Senior Series 2019A-1 AMT   NR/A/A   782,723
1,000,000   5.000%, 06/01/28 Senior Series 2021A-1 AMT   NR/A/A   1,043,630
350,000   5.000%, 06/01/31 Senior Series 2021A-1 AMT   NR/A/A   373,342
500,000   4.000%, 06/01/37 Senior Series 2023A-1 AMT   NR/A/NR   487,805
    Total Student Loan        3,967,964
             
     Turnpike/Highway (6.3%)         
    Kentucky State Turnpike Authority        
4,030,000   5.000%, 07/01/30 Series A   Aa3/A/AA-   4,096,737
1,715,000   5.000%, 07/01/31 Series B   Aa3/A/NR   1,777,632
2,925,000   5.000%, 07/01/33 Series B   Aa3/A/NR   3,029,247
900,000   5.000%, 07/01/28 Series 2022B   Aa3/NR/NR   973,179
    Total Turnpike/Highway        9,876,795
             
    Utilities (3.9%)        
     Boone County, Kentucky Pollution Control        
1,000,000   3.700%, 08/01/27 Series 2008A   Baa1/BBB+/NR   984,350
     Carroll County, Kentucky Environmental Facilities        
2,000,000   3.375%, 02/01/26 Series 2018A AMT   A1/A/NR   1,946,360
     Louisville & Jefferson County, Kentucky Metropolitan Sewer District        
1,920,000   4.500%, 05/15/30 Series A   Aa3/AA/NR   1,934,669
     Murray, Kentucky Electric Plant Board        
1,380,000   3.000%, 12/01/35 Series 2021 AGMC Insured   A1/AA/NR   1,291,735
    Total Utilities        6,157,114
    Total Revenue Bonds        138,779,579
             

 

 

52  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Pre-Refunded Bonds (1.9%)††   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
     Pre-Refunded Revenue Bonds (1.9%)         
    State Agency (0.8%)        
    Kentucky State Property and Buildings Commission        
$ 625,000   4.000%, 04/01/26 Project 105   A1/A/AA-   $ 625,181
655,000   4.000%, 04/01/27 Project 105   A1/A/AA-   655,190
    Total State Agency        1,280,371
             
     School Building (1.1%)         
    Jefferson County, Kentucky School District Finance Corp.          
1,655,000   4.000%, 11/01/29 Series C   Aa3/AA-/NR   1,655,430
    Total Pre-Refunded Bonds        2,935,801
    Total Municipal Bonds
(cost $153,810,451)		        148,144,331
             
Shares   Short-Term Investment (4.6%)        
7,146,791   Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.20%** (cost $7,146,791)   Aaa-mf/AAAm/NR   7,146,791
             
    Total Investments
(cost $160,957,242 - note 4)		   99.1%    155,291,122
    Other assets less liabilities   0.9    1,456,226
    Net Assets   100.0%   $156,747,348

 

 

 

53  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

 

Portfolio Distribution By Quality Rating (unaudited)   Percentage of
Investments†
AAA of S&P   0.3%
Pre-refunded bonds††   2.0
Aa of Moody's or AA of S&P or Fitch   57.5
A of Moody's or S&P or Fitch   36.1
Baa of Moody's or BBB of S&P   0.7
Ba3 of Moody's   1.4
Not Rated*   2.0
    100.0%

 

PORTFOLIO ABBREVIATIONS

AGMC - Assured Guaranty Municipal Corp.

AMT - Alternative Minimum Tax

BAMI - Build America Mutual Insurance

COP - Certificates of Participation

NPFG - National Public Finance Guarantee

NR - Not Rated

 

* Any security not rated (“NR”) by any of the Nationally Recognized Statistical Rating Organizations (“NRSRO”) has been determined by the Investment Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a NRSRO.
   
** The rate is an annualized seven-day yield at period end.
   
† Where applicable, calculated using the highest rating of the three NRSRO. Percentages in this table do not include the Short-Term Investment.
   
†† Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date.
   
  Note: 144A – Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2024, these securities amounted to a value of $3,000,240 or 1.9% of net assets.

 

 

 

See accompanying notes to financial statements.

 

54  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (62.6%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    City (0.8%)        
    Molalla, Oregon        
$ 3,115,000   4.000%, 06/01/49 Series 2024A BAMAC Insured   NR/AA/NR   $ 3,066,313
             
    City & County (7.4%)        
    Bend, Oregon        
2,690,000   5.000%, 06/01/32   NR/AA+/NR   3,143,749
    Benton County, Oregon Full Faith Credit Obligations        
500,000   5.000%, 06/01/39 Series 2023   Aa1/NR/NR   565,365
    Boardman, Oregon Green Bond        
1,000,000   4.000%, 06/15/33 Series 2021 BAMAC Insured   NR/AA/NR   1,041,730
    Clackamas County, Oregon Refunding        
1,135,000   4.000%, 06/01/24   Aaa/NR/NR   1,135,136
    Clackamas County, Oregon (Tax-Exempt)        
1,485,000   5.000%, 06/01/25 Series 2016B   Aaa/NR/NR   1,514,566
    Clatsop County, Oregon        
1,000,000   5.000%, 06/15/32   Aa2/NR/NR   1,114,290
    Hermiston, Oregon Full Faith and Credit Obligations        
450,000   5.000%, 12/01/38 Series 2024 AGMC Insured   NR/AA/NR   515,173
    Lake Oswego, Oregon Refunding        
3,140,000   4.000%, 12/01/30   Aaa/AAA/NR   3,256,745
    Lebanon, Oregon Refunding        
1,050,000   5.000%, 06/01/24   A1/NR/NR   1,051,040
1,165,000   5.000%, 06/01/25   A1/NR/NR   1,184,444
    McMinnville, Oregon Refunding        
2,075,000   5.000%, 02/01/27   Aa3/NR/NR   2,100,938
    Multnomah County, Oregon        
3,000,000   5.000%, 06/01/30   Aaa/AAA/NR   3,190,260
    Portland, Oregon Limited Tax, Build Portland & Fuel Stations Projects        
1,210,000   5.000%, 04/01/36 2017 Series 2022D   Aaa/NR/NR   1,394,223

 

 

55  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    City & County (continued)        
    Portland, Oregon Limited Tax, Sellwood Bridge & Archive Space Projects        
$ 1,710,000   4.000%, 04/01/30 2017 Series A   Aaa/NR/NR   $ 1,763,010
1,775,000   4.000%, 04/01/31 2017 Series A   Aaa/NR/NR   1,826,990
    Redmond, Oregon Full Faith and Credit Bonds        
1,140,000   5.000%, 06/01/34 Series B-1   Aa2/NR/NR   1,258,252
    Salem, Oregon        
3,000,000   5.000%, 06/01/38 Series 2023B   Aa2/NR/NR   3,431,910
    Tualatin, Oregon        
750,000   5.000%, 06/15/39 Series 2023   Aa1/NR/NR   848,400
    Total City & County        30,336,221
             
    Community College (4.4%)        
    Blue Mountain Community College District Umatilla,
Oregon Morrow and Baker Counties Oregon
(Umatilla and Morrow Counties Service Area)		        
970,000   4.000%, 06/15/27 Series 2015   NR/AA+/NR   978,371
    Chemeketa, Oregon Community College District        
2,000,000   5.000%, 06/15/25   NR/AA+/NR   2,007,140
    Clackamas, Oregon Community College District        
1,405,000   5.000%, 06/15/27 Series A   Aa1/AA+/NR   1,433,451
    Columbia Gorge, Oregon Community College District, Refunding        
1,000,000   4.000%, 06/15/24   Aa1/NR/NR   1,000,120
    Lane, Oregon Community College        
1,840,000   5.000%, 06/15/24   NR/AA+/NR   1,841,049
1,735,000   4.000%, 06/15/32 Series 2020A   Aa1/NR/NR   1,851,072
1,070,000   4.000%, 06/15/34 Series 2020 A   Aa1/NR/NR   1,137,217
    Linn Benton, Oregon Community College        
1,520,000   5.000%, 06/01/27   NR/AA+/NR   1,546,159
    Oregon Coast Community College District State        
1,770,000   5.000%, 06/15/25   Aa1/NR/NR   1,771,062

 

 

56  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Community College (continued)        
    Portland, Oregon Community College District        
$ 1,250,000   5.000%, 06/15/38 Series 2023   NR/AA+/NR   $ 1,430,250
    Tillamook Bay, Oregon Community College District        
1,290,000   5.000%, 06/15/35 Series 2023B   NR/AA+/NR   1,501,547
1,450,000   5.000%, 06/15/36 Series 2023B   NR/AA+/NR   1,675,867
    Total Community College        18,173,305
             
    Healthcare (1.3%)        
    Nehalem Bay, Oregon Health District        
2,655,000   5.000%, 06/15/44 Series 2023A   NR/A/NR   2,855,665
    Umatilla, Oregon Hospital District #1        
2,500,000   4.750%, 06/01/43 Series 2023   NR/A/NR   2,500,700
    Total Healthcare        5,356,365
             
    School District (34.9%)        
    Benton & Linn Counties, Oregon School District #509J (Corvallis)        
2,000,000   5.000%, 06/15/31 Series B   Aa1/AA+/NR   2,175,960
1,615,000   5.000%, 06/15/32 Series B   Aa1/AA+/NR   1,749,271
    Clackamas County, Oregon School District #7J (Lake Oswego)        
1,400,000   4.000%, 06/01/33   Aa2/AA+/NR   1,437,562
    Clackamas County, Oregon School District #12 (North Clackamas)        
3,205,000   5.000%, 06/15/30   Aa1/AA+/NR   3,407,107
4,725,000   5.000%, 06/15/31   Aa1/AA+/NR   5,014,028
1,100,000   5.000%, 06/15/32   Aa1/NR/NR   1,197,361
1,000,000   5.000%, 06/15/35   Aa1/NR/NR   1,084,810
2,160,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR   2,298,240
3,000,000   5.000%, 06/15/37 Series B   Aa1/AA+/NR   3,144,180
    Clackamas County, Oregon School District #62 (Oregon City)        
1,310,000   5.000%, 06/15/31 Series B   Aa1/AA+/NR   1,427,979

 

 

57  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    School District (continued)        
    Clackamas & Washington Counties, Oregon School District No. 3JT (West Linn-Wilsonville)        
$ 3,500,000   5.000%, 06/15/26   Aa1/AA+/NR   $ 3,568,390
5,500,000   5.000%, 06/15/27   Aa1/AA+/NR   5,604,830
1,115,000   5.000%, 06/15/28   Aa1/AA+/NR   1,136,129
1,000,000   5.000%, 06/15/34   Aa1/NR/NR   1,168,040
    Clatsop County, Oregon School District #1C (Astoria)        
1,080,000   5.000%, 06/15/31 Series B   Aa1/NR/NR   1,201,057
1,215,000   5.000%, 06/15/32 Series B   Aa1/NR/NR   1,351,359
    Clatsop County, Oregon School District #10 (Seaside)        
1,000,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR   1,061,170
    Clatsop County, Oregon School District #30 (Warrenton-Hammond)        
1,590,000   5.000%, 06/15/31 Series B   Aa1/NR/NR   1,764,137
1,000,000   5.000%, 06/15/32 Series B   Aa1/NR/NR   1,109,150
1,115,000   5.000%, 06/15/34 Series B   Aa1/NR/NR   1,234,439
    Columbia County, Oregon School District #502 (St. Helens)        
1,000,000   5.000%, 06/15/34   Aa1/NR/NR   1,059,280
    Coos County, Oregon School District #9 (Coos Bay)        
1,035,000   5.000%, 06/15/32   NR/AA+/NR   1,131,772
    Curry County, Oregon School District #1 (Central Curry)        
500,000   5.000%, 06/15/39 Series 2023B   NR/AA+/NR   560,965
    Deschutes County, Oregon Administrative School District #1
(Bend - La Pine)		        
3,000,000   4.000%, 06/15/30   Aa1/AA+/NR   3,101,010
1,470,000   4.000%, 06/15/32   Aa1/NR/NR   1,540,531
1,540,000   5.000%, 06/15/37   Aa1/NR/NR   1,789,003
5,000,000   4.000%, 06/15/45   Aa1/NR/NR   4,971,500
    Greater Albany School District, Oregon #8J (Linn & Benton Counties)        
1,000,000   5.000%, 06/15/30 Series 2017   Aa1/AA+/NR   1,062,110
2,035,000   5.000%, 06/15/32 Series 2017   Aa1/AA+/NR   2,157,548

 

 

58  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    School District (continued)        
    Hood River County, Oregon School District        
$ 2,260,000   4.000%, 06/15/30   NR/AA+/NR   $ 2,307,618
2,400,000   4.000%, 06/15/31   NR/AA+/NR   2,451,144
    Jackson County, Oregon School District #5 (Ashland)        
1,620,000   5.000%, 06/15/33 Series 2019   Aa1/AA+/NR   1,788,107
5,970,000   5.000%, 06/15/42 Series 2019   Aa1/AA+/NR   6,377,751
    Lane County, Oregon School District #4J (Eugene) Refunding        
3,300,000   5.000%, 06/15/33   Aa1/NR/NR   3,863,607
1,105,000   4.000%, 06/15/35   Aa1/NR/NR   1,151,432
    Lane County, Oregon School District #19 (Springfield)        
1,000,000   5.000%, 06/15/25   Aa1/AA+/NR   1,020,090
    Lincoln County, Oregon School District        
2,370,000   4.000%, 06/15/24 Series A   Aa1/NR/NR   2,370,237
    Linn & Marion Counties, Oregon School District #129J
(Santiam Canyon)		        
750,000   5.000%, 06/15/34   NR/AA+/NR   833,025
1,200,000   5.000%, 06/15/39 Series 2019   NR/AA+/NR   1,301,976
    Marion & Linn Counties, Oregon School District #29J (North Santiam)        
1,160,000   5.000%, 06/15/32 Series 2023   NR/AA+/NR   1,324,395
    Marion & Polk Counties, Oregon School District #24J (Salem-Keizer)        
5,000,000   5.000%, 06/15/30   Aa1/AA+/NR   5,459,250
1,135,000   5.000%, 06/15/32 Series 2020B   Aa1/AA+/NR   1,286,307
1,000,000   5.000%, 06/15/33 Series 2020B   Aa1/AA+/NR   1,132,980
1,000,000   5.000%, 06/15/34 Series 2020B   Aa1/AA+/NR   1,129,050
2,000,000   5.000%, 06/15/35 Series 2020B   Aa1/AA+/NR   2,250,840
    Multnomah County, Oregon School District #1J (Portland)        
2,970,000   5.000%, 06/15/26 Series B   Aa1/AA+/NR   3,031,568
3,000,000   5.000%, 06/15/37 Series 2023   Aa1/AA+/NR   3,498,210

 

 

59  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    School District (continued)        
    Multnomah County, Oregon School District #7 (Reynolds)        
$ 5,680,000   5.000%, 06/15/26 Series A   Aa1/NR/NR   $ 5,795,020
1,500,000   5.000%, 06/15/27 Series A   Aa1/NR/NR   1,530,375
1,825,000   5.000%, 06/15/28 Series A   Aa1/NR/NR   1,861,956
    Multnomah and Clackamas Counties, Oregon School District #10
(Gresham-Barlow)		        
2,500,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR   2,658,425
    Polk, Marion & Benton Counties, Oregon School District #13J (Central)        
1,515,000   4.000%, 02/01/28   NR/AA+/NR   1,525,120
    Tillamook & Yamhill Counties, Oregon School District #101
(Nestucca Valley)		        
1,275,000   5.000%, 06/15/31   NR/AA+/NR   1,394,072
    Umatilla County, Oregon School District #6R (Umatilla)        
1,435,000   5.000%, 06/15/36 Series 2023A   NR/AA+/NR   1,671,043
1,010,000   5.000%, 06/15/38 Series 2023A   NR/AA+/NR   1,151,319
    Washington County, Oregon School District #15 (Forest Grove)        
625,000   5.000%, 06/15/37 Series 2023   NR/AA+/NR   720,619
    Washington County, Oregon School District #48J (Beaverton)        
1,500,000   5.000%, 06/15/27 Series C   Aa1/AA+/NR   1,598,850
    Washington & Clackamas Counties, Oregon School District #23J (Tigard)        
2,405,000   5.000%, 06/15/30   Aa1/AA+/NR   2,555,144
1,000,000   5.000%, 06/15/31 Series A   Aa1/AA+/NR   1,112,090
1,000,000   5.000%, 06/15/32 Series A   Aa1/AA+/NR   1,111,720
    Washington, Clackamas & Yamhill Counties, Oregon School District #88J        
2,785,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR   2,953,604
2,000,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR   2,178,280

 

 

60  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    School District (continued)        
    Washington, Multnomah & Yamhill Counties, Oregon School District #1J (Hillsboro)        
$ 3,105,000   5.000%, 06/15/30   Aa1/NR/NR   $ 3,294,933
3,010,000   5.000%, 06/15/31   Aa1/NR/NR   3,189,396
2,000,000   5.000%, 06/15/34 Series 2017   Aa1/NR/NR   2,111,040
980,000   4.000%, 06/15/40 Series 2020   Aa1/NR/NR   988,908
    Yamhill County, Oregon School District #40 (McMinnville)        
1,000,000   4.000%, 06/15/30   Aa1/AA+/NR   1,018,500
    Total School District        142,506,919
             
    Special District (5.9%)        
    Bend, Oregon Metropolitan Park & Recreational District        
1,430,000   4.000%, 06/01/27   Aa2/NR/NR   1,430,429
    Clackamas County, Oregon Fire District No. 1        
1,020,000   4.000%, 06/01/30   NR/AA/NR   1,054,007
2,705,000   4.000%, 06/01/31   NR/AA/NR   2,791,966
    Corbett Fire District No. 14, Multnomah County, Oregon        
400,000   5.000%, 06/15/39 Series 2023 AGMC Insured   NR/AA/NR   434,056
    Lebanon, Oregon Fire Protection District, Linn County        
560,000   5.000%, 06/15/40 Series 2023 BAMAC Insured   NR/AA/NR   609,689
    Metro, Oregon        
1,305,000   4.000%, 06/01/26 Series 2012 A   Aaa/AAA/NR   1,305,287
2,390,000   4.000%, 06/01/33 Series 2020 A   Aaa/AAA/NR   2,529,911
1,400,000   4.000%, 06/01/34 Series 2020 A   Aaa/AAA/NR   1,479,254
    Pacific Communities Health District, Oregon        
1,945,000   5.000%, 06/01/29   A1/NR/NR   2,004,848
2,060,000   5.000%, 06/01/30   A1/NR/NR   2,121,656
1,000,000   5.000%, 06/01/31   A1/NR/NR   1,027,610
1,200,000   5.000%, 06/01/32   A1/NR/NR   1,232,880

 

 

61  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Special District (continued)        
    Redmond Area Park & Recreational District, Oregon        
$ 660,000   5.000%, 06/15/38 Series 2023   NR/AA-/NR   $ 752,347
    Tualatin Hills, Oregon Park & Recreational District        
2,525,000   5.000%, 06/01/24   Aa1/NR/NR   2,529,697
2,775,000   5.000%, 06/01/26   Aa1/NR/NR   2,829,113
    Total Special District        24,132,750
             
    State (7.6%)        
    State of Oregon        
750,000   5.000%, 05/01/25 Series A   Aa1/AA+/AA+   750,945
2,000,000   5.000%, 05/01/33 Series 2022A   Aa1/AA+/AA+   2,343,780
    State of Oregon Article XI-G Higher Education        
500,000   5.000%, 08/01/25 Series O   Aa1/AA+/AA+   511,900
    State of Oregon Article XI-M Seismic Projects        
1,000,000   5.000%, 06/01/30   Aa1/AA+/AA+   1,039,420
    State of Oregon Article XI-M and XI-N Seismic Projects        
900,000   5.000%, 06/01/39 Series 2020E   Aa1/AA+/AA+   993,726
    State of Oregon Article XI-M, XI-N and XI-P State Grant Programs        
1,000,000   5.000%, 06/01/37 Series 2023D   Aa1/AA+/AA+   1,165,850
    State of Oregon Article XI-Q State Projects        
4,000,000   5.000%, 05/01/32 Series A   Aa1/AA+/AA+   4,441,760
2,300,000   5.000%, 05/01/37 Series A   Aa1/AA+/AA+   2,698,291
2,905,000   4.000%, 05/01/39 Series A   Aa1/AA+/AA+   2,977,218
3,000,000   5.000%, 05/01/44 Series A   Aa1/AA+/AA+   3,204,990
2,300,000   5.000%, 05/01/28 Series F   Aa1/AA+/AA+   2,341,768
1,605,000   5.000%, 11/01/39 Series J   Aa1/AA+/AA+   1,849,987

 

 

62  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    State (continued)        
    State of Oregon Higher Education        
$ 1,000,000   5.000%, 08/01/28 Series A   Aa1/AA+/AA+   $ 1,022,480
1,920,000   5.000%, 08/01/32 Series G   Aa1/AA+/AA+   2,144,160
1,300,000   5.000%, 08/01/32 Series L   Aa1/AA+/AA+   1,380,210
    State of Oregon Veteran's Welfare        
450,000   1.950%, 06/01/31 Series 2020 I   Aa1/AA+/AA+   387,158
2,000,000   2.150%, 12/01/34 Series 2020 I   Aa1/AA+/AA+   1,670,920
    Total State        30,924,563
             
    Transportation (0.3%)        
    State of Oregon ODOT Projects        
1,020,000   5.000%, 11/15/30 Series M   Aa1/AA+/AA+   1,080,843
    Total General Obligation Bonds        255,577,279
             
    Revenue Bonds (28.4%)        
    Development (0.7%)        
    Oregon State Business Development Commission Recovery Zone Facility (Intel Corp. Project)        
3,000,000   3.800%, 12/01/40   A3/A-/NR   3,038,580
             
    Education (0.3%)        
    Northwest Regional Education Service District, Oregon Full Faith and Credit Obligations        
500,000   5.000%, 06/01/34 Series 2023   A1/NR/NR   567,920
600,000   5.000%, 06/01/37 Series 2023   A1/NR/NR   671,670
    Total Education        1,239,590
             
    Electric (2.3%)        
    Eugene, Oregon Electric Utility Refunding System        
2,250,000   5.000%, 08/01/30 Series A   Aa2/AA-/AA-   2,340,900

 

 

63  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Electric (continued)        
    Warm Springs Reservation, Oregon Confederated Tribes, Hydroelectric Revenue, Tribal Economic Development, Pelton Round Butte Project (Green Bonds)        
$ 1,000,000   5.000%, 11/01/32 Series 2019B 144A   A3/NR/NR   $ 1,095,680
1,000,000   5.000%, 11/01/33 Series 2019B 144A   A3/NR/NR   1,096,590
1,200,000   5.000%, 11/01/34 Series 2019B 144A   A3/NR/NR   1,320,672
500,000   5.000%, 11/01/36 Series 2019B 144A   A3/NR/NR   545,365
2,760,000   5.000%, 11/01/39 Series 2019B 144A   A3/NR/NR   2,964,516
    Total Electric        9,363,723
             
    Healthcare (3.9%)        
    Oregon Health Sciences University        
1,250,000   5.000%, 07/01/28 Series B   Aa3/AA-/AA-   1,295,650
1,000,000   5.000%, 07/01/33 Series B   Aa3/AA-/AA-   1,032,570
    Oregon Health Sciences University        
5,500,000   5.000%, 07/01/46 Series 2021B-2 (Mandatory Put Date 02/01/32)   Aa3/AA-/AA-   6,155,435
    Oregon State Facilities Authority (Legacy Health Project)        
2,255,000   5.000%, 06/01/30 Series 2022B   A1/A/NR   2,486,724
    Oregon State Facilities Authority (Samaritan Health Services Project)        
1,685,000   5.000%, 10/01/40 Series 2020A   NR/BBB+/NR   1,757,522
    Salem, Oregon Hospital Facilities Authority (Salem Health Projects)        
1,130,000   5.000%, 05/15/30 Series 2019A   NR/A+/AA-   1,225,609
    Union County, Oregon Hospital Facility Authority
(Grande Ronde Hospital Project)		        
135,000   5.000%, 07/01/28 Series 2022   NR/BBB/BBB-   140,550
175,000   5.000%, 07/01/29 Series 2022   NR/BBB/BBB-   183,773
200,000   5.000%, 07/01/30 Series 2022   NR/BBB/BBB-   212,062
665,000   5.000%, 07/01/31 Series 2022   NR/BBB/BBB-   707,607
500,000   5.000%, 07/01/32 Series 2022   NR/BBB/BBB-   535,525
    Total Healthcare        15,733,027
             

 

 

64  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Housing (0.3%)        
    Clackamas County, Oregon Housing Authority Multifamily Housing Revenue (Easton Ridge Apartments Project)        
$ 1,310,000   4.000%, 09/01/27 Series A   Aa2/NR/NR   $ 1,310,314
             
    Lottery (3.5%)        
    Oregon State Department of Administration Services
(Lottery Revenue)		        
2,000,000   5.000%, 04/01/32 Series A   Aa2/AAA/NR   2,214,780
1,000,000   5.000%, 04/01/33 Series A   Aa2/AAA/NR   1,106,680
1,500,000   5.000%, 04/01/35 Series A   Aa2/AAA/NR   1,749,675
1,000,000   5.000%, 04/01/25 Series B   Aa2/AAA/NR   1,000,730
5,000,000   5.000%, 04/01/26 Series D   Aa2/AAA/NR   5,080,150
2,000,000   5.000%, 04/01/28 Series D   Aa2/AAA/NR   2,031,060
1,000,000   5.000%, 04/01/29 Series D   Aa2/AAA/NR   1,015,240
    Total Lottery        14,198,315
             
    Sales Tax (0.2%)        
    Metro, Oregon Dedicated Tax Revenue
(Oregon Convention Center Hotel)		        
750,000   5.000%, 06/15/31   Aa3/NR/NR   790,005
             
    Transportation (4.8%)        
    Oregon State Department Transportation Highway Usertax
(Senior Lien)		        
5,000,000   5.000%, 11/15/29 Series B   Aa1/AAA/AA+   5,309,000
    Oregon State Department Transportation Highway Usertax
(Subordinate Lien)		        
900,000   5.000%, 11/15/37 Series 2020A   Aa2/AA+/AA+   1,009,287
2,385,000   5.000%, 11/15/39 Series 2023A   Aa2/AA+/AA+   2,754,341
1,355,000   5.000%, 11/15/41 Series 2023A   Aa2/AA+/AA+   1,536,475
    Port Portland, Oregon Airport Revenue Refunding, Portland International Airport Series Twenty Three        
1,000,000   5.000%, 07/01/28   NR/AA-/NR   1,019,350
1,390,000   5.000%, 07/01/29   NR/AA-/NR   1,418,189

 

 

65  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Transportation (continued)        
    Tri-County Metropolitan Transportation District,
Oregon Capital Grant Receipt		        
$ 1,100,000   5.000%, 10/01/27 Series A   A3/A/NR   $ 1,171,511
2,000,000   5.000%, 10/01/30 Series A   A3/A/NR   2,155,740
3,000,000   5.000%, 10/01/31 Series 2018A   A3/A/NR   3,226,740
    Total Transportation        19,600,633
             
    Water and Sewer (12.4%)        
    Beaverton, Oregon Water Revenue        
1,760,000   5.000%, 04/01/36 Series 2020   NR/AA+/NR   1,966,536
1,850,000   5.000%, 04/01/37 Series 2020   NR/AA+/NR   2,053,278
2,175,000   5.000%, 04/01/41 Series 2024   NR/AA+/NR   2,500,119
2,285,000   5.000%, 04/01/42 Series 2024   NR/AA+/NR   2,614,748
    Eugene, Oregon Water Utility System        
115,000   5.000%, 08/01/28   Aa2/AA/AA+   120,199
450,000   5.000%, 08/01/29   Aa2/AA/AA+   469,935
    Hillsboro, Oregon Water System        
1,710,000   5.000%, 06/01/32   Aa2/NR/NR   1,905,915
    Portland, Oregon Sewer System (First Lien)        
2,000,000   5.000%, 06/01/28 Series A   Aa1/AA+/NR   2,039,700
    Portland, Oregon Sewer System (Second Lien)        
5,405,000   4.500%, 05/01/31 Series A   Aa2/AA/NR   5,531,261
6,355,000   5.000%, 03/01/32 Series A   Aa2/AA/NR   7,104,509
2,000,000   5.000%, 10/01/25 Series B   Aa2/AA/NR   2,015,600
5,000,000   4.000%, 03/01/34 Series 2020A   Aa2/AA/NR   5,257,100
2,195,000   5.000%, 12/01/42 Series 2023A   Aa2/AA/NR   2,479,757
1,040,000   5.000%, 12/01/43 Series 2023A   Aa2/AA/NR   1,169,501
    Portland, Oregon Water System (First Lien)        
3,230,000   5.000%, 05/01/27 Series A   Aa1/NR/NR   3,233,230
1,000,000   4.000%, 04/01/35 Series 2022A   Aa1/AA+/NR   1,064,310
    Portland, Oregon Water System (Second Lien)        
2,230,000   5.000%, 05/01/35 Series 2019A   Aa2/NR/NR   2,476,660
1,740,000   5.000%, 05/01/35 Series 2020A   Aa2/NR/NR   1,933,418

 

 

66  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Water and Sewer (continued)        
    Tualatin Valley, Oregon Water District        
$ 1,000,000   5.000%, 06/01/38 Series 2023   NR/AA+/AA+   $ 1,148,250
3,265,000   5.000%, 06/01/45 Series 2023   NR/AA+/AA+   3,621,375
    Total Water and Sewer        50,705,401
    Total Revenue Bonds        115,979,588
             
    Pre-Refunded\Escrowed to Maturity Bonds (6.9%)††        
    Pre-Refunded General Obligation Bonds (2.7%)        
    Higher Education (0.4%)        
    Oregon State Higher Education        
1,795,000   5.000%, 08/01/27 Series C   Aa1/AA+/AA+   1,803,149
             
    School District (1.5%)        
    Clackamas County, Oregon School District #62 (Oregon City)        
440,000   5.000%, 06/01/29 AGMC Insured   NR/AA/NR   440,827
560,000   5.000%, 06/01/29 AGMC Insured   A1/AA/NR   561,053
    Marion County, Oregon School District #103 (Woodburn)        
2,260,000   5.000%, 06/15/28   Aa1/NR/NR   2,306,466
    Union County, Oregon School District #1 (La Grande)        
1,000,000   5.000%, 06/15/27   Aa1/NR/NR   1,019,960
    Washington County, Oregon School District #48J (Beaverton)        
1,845,000   5.000%, 06/15/29 Series 2014B   Aa1/AA+/NR   1,849,502
    Total School District        6,177,808
             

 

 

67  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Pre-Refunded General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    State (0.8%)        
    State of Oregon Article XI-G Community College Projects        
$ 1,160,000   5.000%, 08/01/27 Series J   Aa1/AA+/AA+   $ 1,186,993
    State of Oregon Article XI-G Higher Education        
1,000,000   5.000%, 08/01/26 Series O   Aa1/AA+/AA+   1,023,800
1,000,000   5.000%, 08/01/27 Series O   Aa1/AA+/AA+   1,023,800
    Total State        3,234,593
    Total Pre-Refunded General Obligation Bonds        11,215,550
             
    Pre-Refunded\Escrowed to Maturity Revenue Bonds (4.2%)        
    Higher Education (0.4%)        
    Oregon State Facilities Authority (Reed College Project)        
500,000   5.000%, 07/01/30 Series A   Aa2/NR/NR   530,590
1,135,000   4.000%, 07/01/31 Series A   Aa2/NR/NR   1,169,583
    Total Higher Education        1,700,173
             
    Transportation (3.8%)        
    Oregon State Department Transportation Highway Usertax
(Senior Lien)		        
1,040,000   5.000%, 11/15/26 Series A   Aa1/AAA/AA+   1,049,131
8,000,000   5.000%, 11/15/28 Series A   Aa1/AAA/AA+   8,074,720
    Tri-County Metropolitan Transportation District, Oregon
(Senior Lien Payroll Tax)		        
3,975,000   5.000%, 09/01/30 Series A   Aaa/AAA/NR   4,163,773
    Tri-County Metropolitan Transportation District, Oregon
(Senior Lien Payroll Tax)		        
2,010,000   5.000%, 09/01/29 Series B   Aaa/AAA/NR   2,058,883
    Total Transportation        15,346,507
    Total Pre-Refunded\Escrowed to Maturity Revenue Bonds        17,046,680
    Total Pre-Refunded\Escrowed to Maturity Bonds        28,262,230
    Total Municipal Bonds
(cost $401,647,679)		        399,819,097
             

 

 

68  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Shares   Short-Term Investment (1.2%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
4,832,800   Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.20%* (cost 4,832,800)   Aaa-mf/AAAm/NR   $ 4,832,800
             
    Total Investments
(cost $406,480,479 - note 4)		   99.1%    404,651,897
    Other assets less liabilities   0.9    3,673,071
    Net Assets   100.0%   $408,324,968

 

 

Portfolio Distribution By Quality Rating (unaudited)   Percentage of
Investments†
Aaa of Moody's or AAA of S&P   9.7%
Pre-refunded bonds††   7.1
Aa of Moody's or AA of S&P or Fitch   73.7
A of Moody's or S&P   8.6
BBB of S&P or Fitch   0.9
    100.0%

 

 

PORTFOLIO ABBREVIATIONS

AGMC - Assured Guaranty Municipal Corp.

BAMAC - Build America Mutual Assurance Co.

NR - Not Rated

ODOT - Oregon Department of Transportation

 

 

 

* The rate is an annualized seven-day yield at period end.
   
† Where applicable, calculated using the highest rating of the three NRSRO.  Percentages in this table do not include the Short-Term Investment.
   
†† Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date.  
   
  Note: 144A – Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2024, these securities amounted to a value of $7,022,823 or 1.7% of net assets.

 

 

See accompanying notes to financial statements.

 

69  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (24.3%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Barrington, Rhode Island        
$ 560,000   2.500%, 08/01/25   Aa1/NR/NR   $ 548,128
    Bristol, Rhode Island        
865,000   3.500%, 08/01/31   NR/AA+/NR   858,141
1,900,000   3.000%, 08/01/38 Series 2021A   NR/AA+/NR   1,714,731
1,095,000   4.500%, 09/15/38 Series 2023A   NR/AA+/NR   1,222,655
    Coventry, Rhode Island        
1,605,000   3.625%, 03/15/27 AGMC Insured   A1/AA/NR   1,606,669
    Cranston, Rhode Island        
1,325,000   4.000%, 07/01/28   A1/AA-/AA+   1,350,758
1,170,000   5.000%, 08/01/32 Series 2018 A   A1/AA-/AA+   1,268,420
1,000,000   4.000%, 08/01/33 Series 2019 A BAMI Insured   A1/AA/AA+   1,040,370
615,000   4.000%, 08/01/35 Series 2019 A BAMI Insured   A1/AA/AA+   638,548
860,000   4.000%, 08/15/34 Series 2021 A   NR/AA-/AA+   905,047
455,000   4.000%, 08/15/35 Series 2021 A   NR/AA-/AA+   477,718
1,000,000   4.250%, 07/15/24 Series B BAMI Insured   A1/AA/AA+   1,001,650
1,000,000   4.250%, 07/15/25 Series B BAMI Insured   A1/AA/AA+   1,013,250
    Cumberland, Rhode Island          
500,000   4.250%, 11/01/27 Series 2011 A   NR/AA+/NR   500,425
500,000   4.625%, 11/01/31 Series 2011 A   NR/AA+/NR   500,555
700,000   4.500%, 03/15/32 Series 2018 A   NR/AA+/NR   738,920
    Hopkinton, Rhode Island        
400,000   4.375%, 08/15/31   Aa3/NR/NR   400,088
    Jamestown, Rhode Island        
1,000,000   4.500%, 02/15/39 Series 2023A   Aa1/NR/NR   1,080,230
    Johnston, Rhode Island        
1,020,000   3.450%, 06/01/29 Series A   A1/AA/NR   1,018,643
1,020,000   3.700%, 06/01/33 Series A   A1/AA/NR   1,020,010
    Lincoln, Rhode Island          
1,500,000   3.500%, 08/01/24 Series A   Aa2/NR/AAA   1,496,910
2,225,000   3.500%, 08/01/25 Series A   Aa2/NR/AAA   2,226,468
    Narragansett, Rhode Island        
1,025,000   3.500%, 07/15/28   Aa2/AA+/NR   1,015,109

 

 

70  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    North Kingstown, Rhode Island        
$ 190,000   3.000%, 04/15/24 Series A   Aa2/AA+/NR   $ 189,890
1,500,000   3.500%, 04/01/37 Series 2021 A   NR/AA+/NR   1,492,920
    North Smithfield, Rhode Island        
825,000   3.000%, 06/15/26 Series A   Aa2/NR/NR   817,600
1,075,000   3.500%, 05/15/34   Aa2/NR/NR   1,080,074
    Pawtucket, Rhode Island        
525,000   4.000%, 11/01/25 AGMC Insured   A1/AA/A+   527,404
890,000   4.500%, 07/15/33 Series C AGMC Insured   A1/AA/NR   956,670
935,000   4.500%, 07/15/34 Series C AGMC Insured   A1/AA/NR   1,007,743
975,000   4.500%, 07/15/35 Series C AGMC Insured   A1/AA/NR   1,045,609
    Portsmouth, Rhode Island        
1,140,000   3.750%, 02/01/31 Series A   Aa2/AAA/NR   1,148,801
    Providence, Rhode Island          
975,000   3.625%, 01/15/29 Series A AGMC Insured   A1/AA/A   975,370
2,010,000   3.750%, 01/15/30 Series A AGMC Insured   A1/AA/A   2,010,945
1,000,000   3.750%, 01/15/32 Series A AGMC Insured   A1/AA/A   1,000,300
    Richmond, Rhode Island        
265,000   3.000%, 08/01/24   Aa3/NR/NR   263,800
    State of Rhode Island        
2,000,000   3.000%, 05/01/31 Series A   Aa2/AA/AA   1,976,520
2,000,000   3.000%, 05/01/32 Series A   Aa2/AA/AA   1,970,000
1,500,000   3.000%, 05/01/36 Series A   Aa2/AA/AA   1,388,220
    Warren, Rhode Island          
1,170,000   4.000%, 02/15/33 Series 2018 A   Aa3/NR/NR   1,201,660
    West Greenwich, Rhode Island        
1,175,000   3.000%, 08/15/26   NR/AA+/NR   1,155,237
    West Warwick, Rhode Island        
795,000   5.000%, 10/01/32 Series A BAMI Insured   A3/AA/NR   812,967
    Westerly, Rhode Island          
345,000   5.000%, 11/15/31 Series 2021 A   NR/AA/NR   396,336
    Total General Obligation Bonds       45,061,509
             

 

 

71  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (71.3%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Development (6.8%)        
    Providence, Rhode Island Public Building Authority
(Capital Improvement Program Projects)		        
$ 3,000,000   4.000%, 09/15/34 Series A AGMC Insured   A1/AA/NR   $ 3,070,650
3,500,000   4.000%, 09/15/35 Series A AGMC Insured   A1/AA/NR   3,565,940
    Providence, Rhode Island Redevelopment Agency Refunding Public Safety Building Project        
1,680,000   5.000%, 04/01/26 Series A AGMC Insured   A1/AA/NR   1,705,922
    Rhode Island Infrastructure Bank Municipal Road and Bridge
Revolving Fund		        
 935,000   4.000%, 10/01/33 Series 2019 A   NR/AA/NR   968,941
 845,000   4.000%, 10/01/34 Series 2019 A   NR/AA/NR   874,761
 1,010,000   4.000%, 10/01/35 Series 2019 A   NR/AA/NR   1,039,724
    Rhode Island Infrastructure Bank Efficient Buildings Fund, Green Bonds        
 1,555,000   3.000%, 10/01/37 Series 2020 A   NR/AA/NR   1,430,693
    Total Development       12,656,631
             
    Healthcare (3.7%)        
    Rhode Island Health & Education Building Corp., Hospital Financing, Lifespan Obligated Group        
875,000   5.000%, 05/15/28 Series 2016   NR/BBB+/BBB+   886,743
1,000,000   5.000%, 05/15/31 Series 2016   NR/BBB+/BBB+   1,015,770
1,000,000   5.000%, 05/15/33 Series 2016   NR/BBB+/BBB+   1,015,520
1,250,000   5.000%, 05/15/34 Series 2016   NR/BBB+/BBB+   1,269,050
1,750,000   5.000%, 05/15/39 Series 2016   NR/BBB+/BBB+   1,761,358
    Rhode Island State & Providence Plantations Lease COP
(Eleanor Slater Hospital Project)		        
1,000,000   4.000%, 11/01/32 Series B   Aa3/AA-/AA-   1,033,850
    Total Healthcare       6,982,291
             

 

 

72  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Higher Education (7.5%)        
    Rhode Island Health and Education Building Corp.,
Higher Educational Facility		        
$ 2,500,000   5.000%, 09/15/30 Series 2010 A AGMC Insured   Aa3/NR/NR   $ 2,501,725
    Rhode Island Health and Educational Building Corp.,
Higher Education Facility, Brown University		        
2,765,000   4.000%, 09/01/37 Series 2017   Aa1/AA+/NR   2,814,134
500,000   5.000%, 09/01/39 Series 2023   Aa1/AA+/NR   578,270
    Rhode Island Health and Educational Building Corp.,
Higher Education Facility, Providence College		        
2,000,000   4.000%, 11/01/24 Series 2015   A2/A/NR   2,003,980
250,000   4.000%, 11/01/37 Series 2021B   A2/A/NR   258,895
250,000   4.000%, 11/01/38 Series 2021B   A2/A/NR   258,397
    Rhode Island Health and Educational Building Corp.,
Higher Education Facility, University of Rhode Island		        
1,000,000   4.250%, 09/15/31 Series A   Aa3/A+/NR   1,038,410
785,000   5.000%, 09/15/34 Series 2023   Aa3/A+/NR   896,910
    Rhode Island Health and Educational Building Corp.,
Higher Education Facility, University of Rhode Island
Auxiliary Enterprise		        
500,000   4.000%, 09/15/31 Series 2016 B   A1/A+/NR   507,855
2,000,000   4.000%, 09/15/42 Series 2017 A   A1/A+/NR   1,994,020
1,000,000   4.000%, 09/15/32 Series 2017 B   A1/A+/NR   1,022,190
    Total Higher Education       13,874,786
             
    Housing (8.5%)        
     Rhode Island Housing & Mortgage Finance Corp.
Homeownership Opportunity		        
155,000   3.000%, 10/01/39 Series 71   Aa1/AA+/NR   134,363
2,000,000   2.100%, 10/01/35 Series 73 A   Aa1/AA+/NR   1,633,680
2,000,000   2.300%, 10/01/40 Series 73 A   Aa1/AA+/NR   1,514,580
2,000,000   2.050%, 10/01/36 Series 75 A   Aa1/AA+/NR   1,539,560

 

 

73  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Housing (continued)        
     Rhode Island Housing & Mortgage Finance Corp.
Homeownership Opportunity (continued)		        
$ 750,000   2.350%, 10/01/36 Series 76 A   Aa1/AA+/NR   $ 607,980
1,125,000   4.000%, 10/01/37 Series 77 A   Aa1/AA+/NR   1,128,083
1,500,000   4.400%, 10/01/38 Series 79 A   Aa1/AA+/NR   1,521,405
1,150,000   4.150%, 10/01/38 Series 80 A   Aa1/AA+/NR   1,162,638
1,420,000   3.800%, 04/01/35 Series 82 A   Aa1/AA+/NR   1,418,126
    Rhode Island Housing & Mortgage Finance Corp. Multi-Family Development Sustainability          
770,000   2.750%, 10/01/34 Series 1-B   Aa2/NR/NR   678,070
1,000,000   3.100%, 10/01/44 Series 1-B   Aa2/NR/NR   798,610
    Rhode Island Housing & Mortgage Finance Corp. Multi-Family Housing        
145,000   4.625%, 10/01/25 Series 2010 A   Aaa/NR/NR   145,099
215,000   5.000%, 10/01/30 Series 2010 A   Aaa/NR/NR   215,475
1,255,000   3.450%, 10/01/36 Series 2016 1B   Aa2/NR/NR   1,234,769
1,000,000   3.250%, 10/01/27 Series 1B   Aa2/NR/NR   989,340
1,000,000   3.400%, 10/01/29 Series 3B   Aa2/NR/NR   999,990
    Total Housing       15,721,768
             
    Public School (29.6%)        
    Rhode Island Health and Education Building Corp., State Appropriation-Backed Revenue Bonds, Central Falls Public School Projects        
 1,115,000   5.000%, 05/15/40 Series 2023   Aa3/AA-/NR   1,227,626
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Burrillville        
 730,000   5.000%, 05/15/35 Series 2022D   NR/AA/NR   837,069
    Rhode Island Health and Education Building Corp., Public School Financing Program, Chariho Regional School District        
 1,520,000   4.000%, 05/15/31 Series 2017 J-2 B   Aa3/NR/NR   1,560,067

 

 

74  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Public School (continued)        
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Coventry        
$ 1,000,000   3.750%, 05/15/28 Series 2013 B AGMC Insured   Aa3/AA/NR   $ 1,000,440
 1,000,000   4.000%, 05/15/33 AGMC Insured   Aa3/AA/NR   1,000,310
    Rhode Island Health and Educational Building Corp., Public School Financing Program, City of Cranston        
 1,170,000   4.000%, 05/15/30 Series 2015 B BAMI Insured   NR/AA/NR   1,179,559
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Cumberland        
 800,000   5.000%, 05/15/39 Series 2023A   NR/AA+/NR   905,504
    Rhode Island Health and Education Building Corp., Public School Financing Program, City of East Providence        
 1,000,000   3.625%, 05/15/32 Series B   Aa3/NR/NR   1,000,300
 870,000   5.000%, 05/15/40 Series 2024A   NR/AA/NR   982,326
    Rhode Island Health and Education Building Corp., Exeter-West Greenwich Regional School District        
 1,455,000   3.500%, 05/15/37 Series 2021 G   Aa3/NR/NR   1,428,795
 1,500,000   4.000%, 05/15/41 Series 2021 G   Aa3/NR/NR   1,508,460
 1,150,000   4.500%, 05/15/39 Series 2023 B   Aa3/NR/NR   1,216,194
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Jamestown        
 1,020,000   3.000%, 05/15/35 Series 2019 C   Aa1/NR/NR   998,233
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Johnston        
 1,045,000   5.000%, 05/15/34 Series 2022F   NR/AA/NR   1,206,944

 

 

75  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Public School (continued)        
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Lincoln        
$ 3,245,000   5.000%, 05/15/33 Series 2020 B   Aa2/NR/AAA   $ 3,611,588
 1,000,000   4.000%, 05/15/35 Series 2020 B   Aa2/NR/AAA   1,049,880
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Little Compton        
 1,100,000   4.000%, 05/15/25 Series 2013 H   NR/AAA/NR   1,100,627
    Rhode Island Health and Education Building Corp., Public School Financing Program, City of Newport        
 2,000,000   4.000%, 05/15/36 Series 2022C   NR/AA+/NR   2,122,860
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of North Providence        
 750,000   5.000%, 05/15/31 Series 2017 G AGMC Insured   Aa3/AA/NR   793,762
 500,000   5.000%, 05/15/32 Series 2019 A AGMC Insured   Aa3/AA/NR   548,805
 500,000   5.000%, 05/15/33 Series 2019 A AGMC Insured   Aa3/AA/NR   548,430
 500,000   5.000%, 05/15/34 Series 2019 A AGMC Insured   Aa3/AA/NR   548,370
 500,000   4.000%, 05/15/37 Series 2019 A AGMC Insured   Aa3/AA/NR   506,395
    Rhode Island Health and Education Building Corp., Public School Financing Program, City of Pawtucket        
 1,200,000   4.000%, 05/15/26 Series 2014 C   Aa3/NR/NR   1,200,708
 1,000,000   4.250%, 05/15/29 Series 2017 E
BAMI Insured		   Aa3/AA/NR   1,031,590
 1,045,000   4.000%, 05/15/31 Series 2018 B   Aa3/NR/NR   1,080,844
 1,090,000   4.000%, 05/15/32 Series 2018 B   Aa3/NR/NR   1,123,648
 1,000,000   4.000%, 05/15/36 Series 2022A   Aa3/NR/NR   1,044,640
 1,000,000   4.000%, 05/15/38 Series 2022A   Aa3/NR/NR   1,023,880
 2,350,000   3.000%, 05/15/39 Series 2019 B   Aa3/NR/NR   2,082,617

 

 

76  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Public School (continued)        
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Portsmouth        
$ 500,000   5.000%, 05/15/32 Series 2022E   NR/AAA/NR   $ 587,335
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Scituate        
 1,285,000   4.500%, 05/15/33 Series 2018 A   NR/AA/NR   1,346,436
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Smithfield        
 1,000,000   3.000%, 05/15/37 Series 2021H   NR/AA/NR   919,700
 1,000,000   3.000%, 05/15/38 Series 2021H   NR/AA/NR   896,140
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Tiverton        
 1,630,000   5.000%, 05/15/27 Series 2015 D   A1/NR/NR   1,653,961
    Rhode Island Health and Education Building Corp., Public School Financing Program, City of Warwick        
 1,000,000   4.000%, 05/15/36 Series 2022B   NR/AA/NR   1,042,470
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Westerly        
 500,000   4.000%, 05/15/31 Series 2021E   NR/AA/NR   533,085
    Rhode Island Health and Education Building Corp., Public School Financing Program, Pooled Issue        
 445,000   5.000%, 05/15/35 Series 2019 A AGMC Insured   Aa3/AA/NR   486,363
    Rhode Island Health and Education Building Corp., Public School Financing Program, Pooled Issue - Narragansett & Scituate        
 1,000,000   4.250%, 05/15/28 Series 2017 B   Aa2/NR/NR   1,032,840

 

 

77  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Public School (continued)        
    Rhode Island Health and Education Building Corp., Public School Financing Program, Providence Public Buildings Authority        
$ 1,000,000   3.750%, 05/15/27 Series 2015 A AGMC Insured   Aa3/AA/NR   $ 1,001,010
 1,500,000   4.000%, 05/15/28 Series 2015 A AGMC Insured   Aa3/AA/NR   1,513,425
 1,500,000   4.000%, 05/15/30 Series 2015 B AGMC Insured   Aa3/AA/NR   1,512,255
    Rhode Island Health and Education Building Corp., Public School Financing Program, Providence Public Schools        
 2,000,000   4.500%, 05/15/24 Series 2013 A   Aa3/NR/NR   2,000,280
 1,000,000   4.000%, 05/15/35 Series 2019 A AGMC Insured   Aa3/AA/NR   1,030,870
    Rhode Island Health and Education Building Corp., Public School Financing Program, City of Warwick        
 1,000,000   4.000%, 05/15/32 Series 2017 I   NR/AA/NR   1,022,540
 500,000   4.000%, 05/15/35 Series 2019 D   NR/AA/NR   515,910
    Rhode Island Health and Education Building Corp., Public School Financing Program, City of Woonsocket        
 500,000   5.000%, 05/15/27 Series 2017 A AGMC Insured   Aa3/AA/NR   526,315
 500,000   5.000%, 05/15/28 Series 2017 A AGMC Insured   Aa3/AA/NR   526,470
 500,000   5.000%, 05/15/29 Series 2017 A AGMC Insured   Aa3/AA/NR   526,905
    Rhode Island Health and Education Building Corp., Public School Financing Program, Town of South Kingstown        
 780,000   3.500%, 05/15/34 Series 2020A   Aa1/NR/NR   787,979
    Total Public School       54,932,760
             

 

 

78  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Secondary Education (1.0%)        
    Rhode Island Health and Educational Building Corp., Educational Institution, St. George's School        
$ 600,000   4.000%, 10/01/36 Series 2021   NR/AA-/NR   $ 621,780
1,265,000   4.000%, 10/01/38 Series 2021   NR/AA-/NR   1,282,343
    Total Secondary Education       1,904,123
             
    Transportation (7.9%)        
    Rhode Island Commerce Corp., Airport        
 635,000   5.000%, 07/01/36 2016 Series D   Baa1/A/A-   650,519
 1,515,000   5.000%, 07/01/37 2016 Series D   Baa1/A/A-   1,547,739
    Rhode Island Commerce Corp., First Lien Special Facility Refunding Bonds (Rhode Island Airport Corporation Intermodal Facility Project)        
 1,425,000   5.000%, 07/01/24 Series 2018   Baa1/A/NR   1,428,591
 1,500,000   5.000%, 07/01/30 Series 2018   Baa1/A/NR   1,606,860
    Rhode Island Commerce Corp., Grant Anticipation Refunding Bonds (Rhode Island Department of Transportation)        
 1,000,000   5.000%, 06/15/31 Series 2016 B   A2/AA-/NR   1,030,530
    Rhode Island State Economic Development Corp., Airport        
 1,000,000   5.000%, 07/01/24 Series B   Baa1/A/A-   1,000,720
 2,000,000   4.000%, 07/01/24 Series B   Baa1/A/A-   2,000,020
    Rhode Island State Turnpike & Bridge Authority, Motor Fuel Tax        
 1,240,000   4.000%, 10/01/27 Series 2016 A   NR/A+/A-   1,264,044
 1,500,000   4.000%, 10/01/34 Series 2016 A   NR/A+/A-   1,521,465
 1,000,000   4.000%, 10/01/36 Series 2016 A   NR/A+/A-   1,009,060
 425,000   5.000%, 10/01/40 Series 2016 A   NR/A+/A-   432,467
 300,000   4.000%, 10/01/33 Series 2019 A   NR/A+/A-   313,419
 300,000   4.000%, 10/01/34 Series 2019 A   NR/A+/A-   312,486
 495,000   4.000%, 10/01/35 Series 2019 A   NR/A+/A-   513,157
    Total Transportation       14,631,077
             

 

 

79  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Water and Sewer (5.2%)        
    Narragansett, Rhode Island Bay Commission Wastewater System        
$ 3,145,000   4.000%, 02/01/28 Series A   NR/AA-/NR   $ 3,167,801
    Rhode Island Clean Water Protection Finance Agency Safe Drinking Water Revolving Fund        
 1,085,000   3.500%, 10/01/25   NR/AAA/AAA   1,086,118
    Rhode Island Infrastructure Bank Water, City of Pawtucket        
 1,730,000   5.000%, 10/01/28 Series 2015 NPFG Insured   Baa2/A+/NR   1,761,988
    Rhode Island Infrastructure Bank Water, Pollution Control        
 2,575,000   4.000%, 10/01/29 Series A   NR/AAA/AAA   2,608,990
 500,000   4.000%, 10/01/32 Series A   NR/AAA/AAA   516,880
    Rhode Island Infrastructure Bank Water, Safe Drinking Water        
 500,000   3.000%, 10/01/31 Series A   NR/AAA/AAA   499,485
    Total Water and Sewer       9,641,262
             
    Other Revenue (1.1%)        
    Providence, Rhode Island Public Building Authority
(Capital Improvement Program Projects)		        
2,000,000   5.000%, 09/15/31 Series A AGMC Insured   A1/AA/NR   2,101,800
    Total Revenue Bonds       132,446,498
             
    Pre-Refunded Bonds (1.4%)††        
    Pre-Refunded General Obligation Bonds (0.8%)        
    Rhode Island State & Providence Plantations Consolidated
Capital Development Loan		        
1,500,000   5.000%, 11/01/34 Series B   Aa2/AA/AA   1,512,375
             

 

 

80  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Pre-Refunded Revenue Bonds (0.6%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Higher Education (0.6%)        
    Rhode Island Health and Educational Building Corp.,
Higher Education Facility, Bryant University		        
$1,000,000   5.000%, 06/01/32 Series 2014   A2/NR/NR   $ 1,001,800
    Total Pre-Refunded Revenue Bonds       2,514,175
    Total Municipal Bonds
(cost $186,610,241)		       180,022,182
             
Shares   Short-Term Investment (2.1%)        
3,989,880   Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.20%* (cost $3,989,880)   Aaa-mf/AAAm/NR   3,989,880
             
    Total Investments
(cost $190,600,121 - note 4)		   99.1%   184,012,062
    Other assets less liabilities   0.9   1,681,374
    Net Assets   100.0%   $ 185,693,436

 

 

 

Portfolio Distribution By Quality Rating (unaudited)   Percentage of
Investments†
Aaa of Moody’s or AAA of S&P or Fitch   9.1%
Pre-refunded bonds††   1.4
Aa of Moody's or AA of S&P or Fitch   73.4
A of Moody's or S&P or Fitch   12.8
BBB of S&P or Fitch   3.3
    100.0%

 

 

81  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

 

PORTFOLIO ABBREVIATIONS

AGMC - Assured Guaranty Municipal Corp.

BAMI - Build America Mutual Insurance

COP - Certificates of Participation

NPFG - National Public Finance Guarantee

NR - Not Rated

 

 

* The rate is an annualized seven-day yield at period end.
   
† Where applicable, calculated using the highest rating of the three NRSRO.  Percentages in this table do not include the Short-Term Investment.
   
†† Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements.

 

82  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (6.7%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    City and County (2.1%)        
    Clark County, Nevada, Refunding        
$ 1,000,000   4.000%, 06/01/37 Series 2019   Aa1/AA+/NR   $ 1,026,320
200,000   3.000%, 06/01/38 Series 2019   Aa1/AA+/NR   178,692
    Port Arthur, Texas Combination Tax & Revenue
Certificates of Obligation		        
1,000,000   5.000%, 02/15/41 Series 2023 BAMI Insured   NR/AA/NR   1,089,720
    Port of Olympia, Washington Limited Tax        
1,385,000   5.000%, 12/01/31 AMT Series B   Aa2/NR/NR   1,470,635
    Port of Vancouver, Washington Limited Tax        
555,000   5.000%, 12/01/33 AMT Series 2022A   Aa2/NR/NR   612,548
    Reno, Nevada Capital Improvement Refunding        
1,000,000   5.000%, 06/01/28   Aa3/AA-/NR   1,000,920
    West University Place City, Texas Certificates of Obligation        
535,000   5.000%, 02/01/26 Series 2022   NR/AAA/NR   552,666
    Total City and County       5,931,501
             
    Healthcare (0.4%)        
    King County, Washington Public Hospital District No. 001, Refunding, Valley Medical Center          
1,000,000   5.000%, 12/01/28   A2/NR/NR   1,081,190
             
    Public Schools (3.2%)        
    Cache County, Utah School District
(School Board Guaranty Program)		        
3,000,000   4.000%, 06/15/43 Series 2024   Aaa/NR/NR   3,009,300
    Clark County, Nevada School District Limited Tax        
1,500,000   3.000%, 06/15/37 Series B AGMC Insured   A1/AA/NR   1,360,320
1,645,000   5.000%, 06/15/28 Series D   A1/AA-/NR   1,688,889
    Logan City, Utah School District
(School Board Guaranty Program)		        
1,385,000   4.000%, 06/15/30 Series 2014   Aaa/NR/NR   1,386,496

 

 

83  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   General Obligation Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Public Schools (continued)        
    Port Arthur, Texas Independent School District Unlimited Tax        
$ 1,000,000   4.000%, 02/15/35 Series 2021 AGMC Insured   NR/AA/A+   $ 1,039,760
    Weatherford, Texas Independent School District Unlimited Tax Refunding        
530,000   zero coupon, 02/15/28 Series 2019 PSF Guaranteed   Aaa/NR/NR   467,094
    Total Public Schools       8,951,859
             
    State (1.0%)        
    Utah State        
2,750,000   5.000%, 07/01/25 Series 2020B   Aaa/AAA/AAA   2,810,995
    Total General Obligation Bonds       18,775,545
             
    Revenue Bonds (88.3%)        
    Airport (7.1%)        
    Broward County, Florida Port Facilities        
1,000,000   4.000%, 09/01/38 AMT Series B   A1/A/NR   1,008,670
    Clark County, Nevada Airport System Junior Subordinate Lien        
745,000   5.000%, 07/01/26 AMT Series 2021 B   Aa3/NR/AA-   768,944
    Hillsborough County, Florida Aviation Authority Airport, Tampa International Airport        
1,500,000   5.000%, 10/01/28 AMT Series 2022A   Aa3/NR/AA-   1,612,380
    Metropolitan Washington District of Columbia Airport Authority System, Revenue Refunding        
1,000,000   5.000%, 10/01/38 AMT Series 2019A   Aa3/AA-/AA-   1,058,880
    Miami-Dade County, Florida Aviation Revenue Refunding        
1,000,000   5.000%, 10/01/34 AMT Series 2014A   A1/A/A+   1,004,320
    Miami-Dade County, Florida Seaport Revenue Refunding        
1,000,000   5.000%, 10/01/30 AMT Series 2022A   A3/NR/A   1,089,440

 

 

84  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Airport (continued)        
    Salt Lake City, Utah Airport Revenue, Salt Lake City
International Airport		        
$ 1,000,000   5.000%, 07/01/26 AMT Series A   A2/A+/NR   $ 1,030,180
1,000,000   5.000%, 07/01/27 AMT Series A   A2/A+/NR   1,044,770
1,000,000   5.000%, 07/01/28 AMT Series A   A2/A+/NR   1,062,000
1,000,000   5.000%, 07/01/29 AMT Series A   A2/A+/NR   1,058,590
1,000,000   5.000%, 07/01/29 AMT Series A   A2/A+/NR   1,079,140
3,100,000   5.000%, 07/01/30 AMT Series A   A2/A+/NR   3,237,361
175,000   5.000%, 07/01/25 AMT Series 2023A   A2/A+/NR   177,336
500,000   5.000%, 07/01/35 AMT Series 2023A   A2/A+/NR   564,060
250,000   5.250%, 07/01/38 AMT Series 2023A   A2/A+/NR   280,035
895,000   5.000%, 07/01/30 Series B   A2/A+/NR   949,327
850,000   5.000%, 07/01/31 Series B   A2/A+/NR   901,570
500,000   5.000%, 07/01/31 Series B   A2/A+/NR   542,425
1,525,000   5.000%, 07/01/37 Series B   A2/A+/NR   1,602,577
    Total Airport       20,072,005
             
    Charter Schools (12.6%)        
    Utah State Charter School Finance Authority Entheos Academy        
1,375,000   4.000%, 10/15/30 Series 2020A   Aa2/NR/NR   1,392,242
    Utah State Charter School Finance Authority
George Washington Academy		        
1,500,000   5.000%, 04/15/35 Series 2015   NR/AA/NR   1,500,885
    Utah State Charter School Finance Authority
Good Foundations Academy		        
120,000   4.750%, 11/15/24 Series A 144A   NR/NR/NR*   119,944
1,655,000   5.550%, 11/15/34 Series A 144A   NR/NR/NR*   1,655,662
3,280,000   5.850%, 11/15/44 Series A 144A   NR/NR/NR*   3,280,492
    Utah State Charter School Finance Authority Lakeview Academy        
1,300,000   5.000%, 10/15/35 Series 2015   NR/AA/NR   1,326,975

 

 

85  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Charter Schools (continued)        
    Utah State Charter School Finance Authority Legacy
Preparatory Academy		        
$ 300,000   4.000%, 04/15/24   NR/AA/NR   $ 299,919
1,710,000   5.000%, 04/15/29   NR/AA/NR   1,724,518
1,000,000   4.000%, 04/15/32 Series 2022   NR/AA/NR   1,021,790
1,000,000   4.000%, 04/15/37 Series 2022   NR/AA/NR   1,004,780
    Utah State Charter School Finance Authority Monticello Academy        
1,000,000   5.000%, 04/15/37 Series 2014   NR/AA/NR   1,001,080
    Utah State Charter School Finance Authority Ogden
Preparatory Academy		        
260,000   4.000%, 10/15/24   NR/AA/NR   259,542
    Utah State Charter School Finance Authority Promontory
School of Expeditionary Learning		        
1,550,000   3.600%, 10/15/33   Aa2/NR/NR   1,535,352
    Utah State Charter School Finance Authority Providence Hall        
1,000,000   4.000%, 10/15/46 Series 2021A   Aa2/NR/NR   937,400
    Utah State Charter School Finance Authority Quest Academy        
500,000   5.000%, 04/15/37   NR/AA/NR   511,445
    Utah State Charter School Finance Authority
Salt Lake Arts Academy		        
1,000,000   3.000%, 04/15/40 Series 2020A   NR/AA/NR   836,520
    Utah State Charter School Finance Authority Spectrum Academy        
625,000   4.000%, 04/15/33 Series 2020   Aa2/NR/NR   639,006
655,000   4.000%, 04/15/34 Series 2020   Aa2/NR/NR   667,137
    Utah State Charter School Finance Authority Summit Academy        
1,470,000   5.000%, 04/15/39 Series 2024A   NR/AA/NR   1,594,200
    Utah State Charter School Finance Authority
Utah Charter Academies		        
500,000   5.000%, 10/15/25 Series 2018   NR/AA/NR   508,765

 

 

86  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Charter Schools (continued)        
    Utah State Charter School Finance Authority Venture Academy        
$ 145,000   4.000%, 10/15/24   NR/AA/NR   $ 144,861
855,000   5.000%, 10/15/29   NR/AA/NR   861,139
1,095,000   5.000%, 10/15/34   NR/AA/NR   1,102,096
1,095,000   5.000%, 10/15/38   NR/AA/NR   1,099,884
    Utah State Charter School Finance Authority Vista School        
1,080,000   4.000%, 10/15/35   Aa2/NR/NR   1,089,353
    Utah State Charter School Finance Authority Voyage Academy        
515,000   5.000%, 03/15/27 144A   NR/NR/NR*   515,052
2,440,000   5.500%, 03/15/37 144A   NR/NR/NR*   2,440,317
4,785,000   5.600%, 03/15/47 144A   NR/NR/NR*   4,784,761
    Utah State Charter School Finance Authority
Wasatch Peak Academy		        
740,000   5.000%, 10/15/29 Series 2013A   NR/AA/NR   740,555
700,000   5.000%, 10/15/36 Series 2013A   NR/AA/NR   700,525
    Total Charter Schools       35,296,197
             
    Electric (6.4%)        
    Consolidated Wyoming Municipalities Electric Facilities Improvement Lease, Gillette        
1,000,000   5.000%, 06/01/31   A1/AA-/NR   1,001,470
250,000   5.250%, 06/01/37   NR/AA-/NR   283,350
    Heber Light & Power Co., Utah Electric Revenue        
500,000   4.000%, 12/15/36 Series 2019 AGMC Insured   A1/AA/A+   511,265
645,000   4.000%, 12/15/38 Series 2019 AGMC Insured   A1/AA/A+   652,727
285,000   5.000%, 12/15/24 Series 2023 BAMAC Insured   A2/AA/A+   287,693
500,000   5.000%, 12/15/36 Series 2023 BAMAC Insured   A2/AA/A+   567,670

 

 

87  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Electric (continued)        
    Intermountain Power Agency, Utah Power Supply Revenue        
$ 250,000   5.000%, 07/01/30   Aa3/NR/AA-   $ 284,045
375,000   5.000%, 07/01/33   Aa3/NR/AA-   431,726
375,000   5.000%, 07/01/35   Aa3/NR/AA-   428,629
100,000   5.000%, 07/01/36 Series 2023A   Aa3/NR/AA-   115,289
100,000   5.000%, 07/01/37 Series 2023A   Aa3/NR/AA-   113,905
    Lehi, Utah Electric Utility Revenue        
520,000   5.000%, 06/01/29   NR/A+/NR   560,799
850,000   5.000%, 06/01/31   NR/A+/NR   919,241
    Lower Colorado River Authority, Texas Transmission
Contract Revenue		        
1,000,000   5.000%, 05/15/30   NR/A/A+   1,014,480
    San Antonio, Texas Electric & Gas Revenue System        
1,250,000   4.000%, 02/01/33   Aa2/AA-/AA-   1,262,575
    Southeast Alaska Power Agency Electric Refunding & Improvement        
1,170,000   5.250%, 06/01/30   NR/A/NR   1,181,384
    St. George, Utah Electric Revenue        
380,000   5.000%, 06/01/26 Series 2016 AGMC Insured   A1/AA/NR   394,630
1,620,000   4.000%, 06/01/32 Series 2016 AGMC Insured   A1/AA/NR   1,651,363
    Utah Associated Municipal Power System Revenue,
Horse Butte Wind Project		        
500,000   5.000%, 09/01/24 Series A   NR/A-/AA-   502,520
375,000   5.000%, 09/01/30 Series 2017B   NR/A-/AA-   403,785
    Utah Associated Municipal Power System Revenue,
Veyo Heat Recovery Project		        
795,000   5.000%, 03/01/30   NR/A/AA-   804,858
905,000   5.000%, 03/01/32   NR/A/AA-   915,245
745,000   5.000%, 03/01/34   NR/A/AA-   753,232
    Utah State Municipal Power Agency Power Supply
System Revenue		        
2,900,000   5.000%, 07/01/38 Series B   NR/A+/AA   2,982,592
    Total Electric       18,024,473
             

 

 

88  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Healthcare (0.7%)        
    Hale Center, Texas Educational Facilities Corporation, Wayland Baptist University        
$ 700,000   5.000%, 03/01/29 Series 2022   NR/BBB+/NR   $ 729,799
    Miami-Dade County, Florida Public Facilities,
Jackson Health System		        
1,000,000   5.000%, 06/01/29 Series A   Aa2/A+/AA-   1,016,440
    Utah County, Hospital Revenue, IHC Health Services        
300,000   3.600%, 05/15/51 Series 2016E VRDO***   Aa1/AA+/NR   300,000
    Total Healthcare       2,046,239
             
    Higher Education (8.8%)        
    Salt Lake County, Utah Westminster College Project        
1,970,000   5.000%, 10/01/25   NR/BBB-/NR   1,976,462
955,000   5.000%, 10/01/28   NR/BBB-/NR   960,272
1,845,000   5.000%, 10/01/29   NR/BBB-/NR   1,870,240
1,005,000   5.000%, 10/01/29   NR/BBB-/NR   1,010,960
1,055,000   5.000%, 10/01/30   NR/BBB-/NR   1,060,992
    South Dakota Board of Regents, Housing & Auxiliary
Facilities System		        
500,000   5.000%, 04/01/28   Aa3/NR/NR   517,170
    University of South Florida Financing Corp., Florida COP Refunding Master Lease Program        
1,000,000   5.000%, 07/01/31 Series A   A1/A+/NR   1,020,700
    Utah State Board of Regents, Dixie State University        
1,800,000   5.000%, 06/01/30 AGMC Insured   NR/AA/NR   1,826,442
660,000   5.000%, 06/01/35 Series B AGMC Insured   NR/AA/NR   696,881
690,000   5.000%, 06/01/36 Series B AGMC Insured   NR/AA/NR   725,783
1,375,000   3.000%, 06/01/36 Series 2019   NR/AA/NR   1,269,730

 

 

89  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Higher Education (continued)        
    Utah State Board of Regents, Student Building Fee,
Salt Lake Community College		        
$ 1,295,000   5.000%, 03/01/26 Series 2018   NR/AA/NR   $ 1,313,635
1,000,000   5.000%, 03/01/27 Series 2018   NR/AA/NR   1,013,760
    Utah State Board of Regents, Student Facilities System Revenue, Weber State University        
750,000   5.000%, 04/01/29 AGMC Insured   NR/AA/NR   815,175
1,000,000   3.000%, 04/01/35 Series 2021 BAMAC Insured   NR/AA/NR   943,350
    Utah State Board of Regents, University of Utah        
500,000   5.000%, 08/01/29 Series A   Aa1/AA+/NR   535,170
480,000   5.000%, 08/01/33 Series A   Aa1/AA+/NR   488,904
600,000   5.000%, 08/01/35 Series A   Aa1/AA+/NR   610,110
500,000   4.000%, 08/01/36 Series A   Aa1/AA+/NR   504,565
1,000,000   5.000%, 08/01/35 Series B-1   Aa1/AA+/NR   1,038,120
1,500,000   5.000%, 08/01/36 Series B-1   Aa1/AA+/NR   1,554,435
    Utah State Board of Regents, Utah State University        
1,105,000   4.000%, 12/01/30 Series B   NR/AA/NR   1,119,266
2,055,000   3.000%, 12/01/36 Series B   NR/AA/NR   1,882,318
    Total Higher Education       24,754,440
             
    Housing (3.3%)        
    Alaska Housing Finance Corp., Collaterized Bonds,
Veterans Mortgage Program		        
525,000   4.000%, 06/01/36   Aaa/AAA/NR   527,452
    South Dakota Housing Development Authority
Homeownership Mortgage		        
500,000   1.350%, 05/01/28 Series 2020C   Aaa/AAA/NR   449,045
500,000   1.400%, 11/01/28 Series 2020C   Aaa/AAA/NR   440,700

 

 

90  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Housing (continued)        
    Utah Housing Corporation Single Family Mortgage        
$ 565,000   4.600%, 07/01/34 Series B-1 Class I   Aaa/AAA/AAA   $ 565,390
20,000   4.625%, 07/01/32 Series B-1 Class II   Aa2/AA+/AA   20,010
2,805,000   3.850%, 01/01/31 AMT Series D Class III FHA Insured   Aa3/AA/AA   2,733,865
480,000   4.000%, 01/01/36 Series D FHA Insured   Aa3/AA/AA   480,874
1,000,000   6.000%, 07/01/53 Series 2023A PAC   Aa2/NR/NR   1,078,070
2,000,000   4.450%, 01/01/44 Series 2024C   Aa2/NR/NR   1,996,040
    Vancouver, Washington Housing Authority, Anthem Park and Columbia House Projects        
500,000   4.000%, 06/01/35 Series 2020   NR/AA-/NR   506,160
500,000   3.000%, 06/01/38 Series 2020   NR/AA-/NR   427,935
    Total Housing       9,225,541
             
    Local Public Property (18.2%)        
    Alaska State Municipal Bond Bank        
540,000   5.000%, 02/01/30 AMT   NR/A+/A   567,794
565,000   5.000%, 02/01/31 AMT   NR/A+/A   593,290
590,000   5.000%, 02/01/32 AMT   NR/A+/A   619,435
90,000   5.000%, 12/01/37 AMT 2023 Series Two   A1/A+/NR   97,761
    Bluffdale, Utah Local Building Authority Lease Revenue        
1,215,000   4.000%, 03/01/35   Aa2/NR/NR   1,218,864
    Downtown Redevelopment Authority, Texas
Tax Increment Contract Revenue		        
1,000,000   5.000%, 09/01/30 BAMI Insured   NR/AA/NR   1,029,840
    Eagle Mountain, Utah Special Assessment Area        
125,000   5.250%, 05/01/28 Series 2013   NR/AA-/NR   125,056
    Jacksonville, Florida Special Revenue Bonds        
1,000,000   5.250%, 10/01/37 Series 2022C   NR/AA/AA-   1,166,070

 

 

91  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Local Public Property (continued)        
    Lehi, Utah Local Building Authority Lease Revenue        
$ 300,000   5.000%, 06/15/29 Series 2022   NR/AA-/AA+   $ 328,467
500,000   5.000%, 06/15/30 Series 2022   NR/AA-/AA+   557,040
225,000   5.250%, 06/15/37 Series 2022   NR/AA-/AA+   255,393
    Manatee County, Florida Revenue Improvement & Refunding        
500,000   5.250%, 10/01/34 Series 2022C   Aaa/NR/AA+   597,970
    Mesquite, Nevada New Special Improvement District        
25,000   5.500%, 08/01/25   NR/NR/NR*   25,083
    Midvale, Utah Redevelopment Agency Tax Increment & Sales Tax Revenue Refunding        
1,230,000   5.000%, 05/01/31   NR/AA+/AA   1,326,075
1,000,000   5.000%, 05/01/32   NR/AA+/NR   1,048,280
    Murray City, Utah Municipal Building Authority
Lease Revenue		        
480,000   4.000%, 12/01/31 Series 2020   Aa2/NR/NR   509,779
300,000   4.000%, 12/01/32 Series 2020   Aa2/NR/NR   317,394
    Ogden City, Utah Municipal
Building Authority Lease Revenue		        
1,000,000   5.000%, 01/15/43 Series 2023A   A1/NR/AA   1,091,250
    Ogden City, Utah Redevelopment Agency, Sales Tax & Tax
Increment Revenue		        
1,500,000   5.000%, 01/15/48 Series 2023   NR/AAA/AA+   1,618,545
    Old Spanish Trail/Almeda Corridors Redevelopment Authority, Texas Tax Increment Contract Revenue        
1,000,000   4.000%, 09/01/35 BAMI Insured   NR/AA/NR   1,004,750
    Orange County, Florida Tourist Development Tax
Revenue Refunding		        
1,000,000   5.000%, 10/01/30   Aa2/AA-/AA   1,026,530
    Pennington County, South Dakota COP Limited Tax        
1,000,000   5.000%, 12/01/46 Series 2022A   Aa1/NR/NR   1,064,410

 

 

92  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Local Public Property (continued)        
    Saint George Place, Texas Redevelopment Authority
Tax Increment Contract		        
$ 605,000   4.000%, 09/01/30 AGMC Insured   A1/AA/NR   $ 609,181
    Salt Lake City, Utah Local Building Authority Lease Revenue        
600,000   5.000%, 04/15/32 Series A   Aa1/NR/NR   632,040
395,000   4.000%, 04/15/32 Series A   Aa1/NR/NR   402,497
425,000   4.000%, 04/15/34 Series A   Aa1/NR/NR   432,603
1,075,000   5.000%, 04/15/35 Series A   Aa1/NR/NR   1,128,901
460,000   4.000%, 04/15/36 Series A   Aa1/NR/NR   465,529
    Salt Lake City, Utah Mosquito Abatement District Local Building Authority Lease Revenue        
730,000   5.000%, 02/15/29   Aa3/NR/NR   766,777
810,000   5.000%, 02/15/31   Aa3/NR/NR   852,574
    South Jordan, Utah Special Assessment
(Daybreak Assessment Area No. 1)		        
945,000   4.000%, 11/01/27   NR/AA+/NR   966,045
1,185,000   4.000%, 11/01/28   NR/AA+/NR   1,211,437
1,035,000   4.000%, 11/01/30   NR/AA+/NR   1,056,342
    South Salt Lake, Utah Redevelopment Agency Excise Tax & Tax Increment Revenue Refunding        
1,035,000   4.000%, 11/01/29 Series 2020   NR/AA/NR   1,086,191
1,080,000   4.000%, 11/01/30 Series 2020   NR/AA/NR   1,138,007
    Tooele County, Utah Municipal Building Authority Lease
Revenue Cross-Over		        
850,000   4.000%, 12/15/28   NR/AA/NR   882,122
885,000   4.000%, 12/15/29   NR/AA/NR   916,170
920,000   4.000%, 12/15/30   NR/AA/NR   951,657
    Unified Utah Fire Service Area Local Building Authority
Lease Revenue		        
1,800,000   4.000%, 04/01/31   Aa2/NR/NR   1,902,150
2,350,000   4.000%, 04/01/32   Aa2/NR/NR   2,379,704
1,875,000   4.000%, 04/01/32   Aa2/NR/NR   1,968,075

 

 

93  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Local Public Property (continued)        
    Vineyard Redevelopment Agency, Utah Tax Increment Revenue
And Refunding Bonds		        
$ 750,000   5.000%, 05/01/25 Series 2021 AGMC Insured   NR/AA/NR   $ 762,120
    Wasatch County, Utah Municipal Building Authority Lease Revenue        
585,000   4.000%, 12/01/29 Series 2021   NR/AA-/NR   615,432
605,000   4.000%, 12/01/30 Series 2021   NR/AA-/NR   642,359
    Washington County, Utah Municipal Building Authority
Lease Revenue		        
500,000   5.000%, 10/01/32   Aa3/NR/NR   520,570
500,000   5.000%, 10/01/37   Aa3/NR/NR   514,635
    Weber County, Utah Special Assessment Summit Mountain Area        
1,220,000   5.500%, 01/15/28   NR/AA/NR   1,221,293
3,835,000   5.750%, 01/15/33   NR/AA/NR   3,839,027
    West Jordan, Utah Municipal Building Authority Lease Revenue        
1,000,000   5.000%, 10/01/29   Aa3/NR/NR   1,039,190
1,000,000   5.000%, 10/01/34   Aa3/NR/NR   1,033,610
    West Valley City, Utah Municipal Building Authority Lease
Revenue Refunding		        
900,000   4.000%, 02/01/33 AGMC Insured   NR/AA/AA-   912,087
1,000,000   5.000%, 02/01/34 AGMC Insured   NR/AA/AA-   1,041,100
300,000   5.000%, 02/01/34 AGMC Insured   NR/AA/AA-   328,362
810,000   4.000%, 02/01/38 AGMC Insured   NR/AA/AA-   811,515
    West Valley City, Utah Redevelopment Agency Revenue Refunding        
1,885,000   5.000%, 11/01/36   NR/AA/NR   1,957,045
    Total Local Public Property       51,175,423
             

 

 

94  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Public Schools (2.2%)        
    Alpine, Utah Local Building Authority School District
Lease Revenue		        
$ 985,000   4.000%, 03/15/28   Aa1/NR/NR   $ 1,015,693
    Canyons School District Utah, Local Building Authority Lease        
750,000   4.000%, 06/15/34 Series 2021   Aa1/NR/NR   796,927
    Duchesne School District Utah, Municipal Building Authority Lease        
750,000   5.000%, 06/01/36 Series 2022   A2/NR/NR   811,897
750,000   4.000%, 06/01/38 Series 2022   A2/NR/NR   753,165
    Grand City, Utah Local Building Authority School District
Lease Revenue		        
1,665,000   5.000%, 12/15/34 AGMC Insured   A1/AA/NR   1,697,234
    Ogden City, Utah Municipal Building Authority School
District Lease Revenue		        
1,125,000   5.000%, 01/15/30   A1/NR/NR   1,197,787
    Total Public Schools       6,272,703
             
    Sales Tax (16.2%)        
    Bountiful, Utah Sales Tax Revenue        
355,000   5.000%, 07/01/24 Series 2023   NR/AA+/NR   356,196
500,000   5.000%, 07/01/36 Series 2023   NR/AA+/NR   580,140
250,000   5.000%, 07/01/37 Series 2023   NR/AA+/NR   287,225
550,000   5.000%, 07/01/43 Series 2023   NR/AA+/NR   609,801
    Draper, Utah Sales Tax Revenue        
765,000   4.000%, 11/15/39 Series 2022   NR/AAA/NR   786,213
    Herriman City, Utah Sales & Franchise Tax Revenue Refunding        
2,135,000   4.000%, 08/01/30 Series B   NR/AA+/NR   2,162,050
1,515,000   5.000%, 08/01/33 Series B   NR/AA+/NR   1,541,119
    Holladay, Utah Sales Tax Revenue        
965,000   5.000%, 11/15/29 Series 2022   NR/AA+/NR   1,080,144

 

 

95  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Sales Tax (continued)        
    Lehi, Utah Franchise & Sales Tax Revenue (Broadband Project)        
$ 1,000,000   4.000%, 02/01/32 Series 2021 AGMC Insured   NR/AA/NR   $ 1,064,310
1,000,000   4.000%, 02/01/33 Series 2021 AGMC Insured   NR/AA/NR   1,057,020
500,000   4.000%, 02/01/34 Series 2021 AGMC Insured   NR/AA/NR   524,460
500,000   4.000%, 02/01/35 Series 2021 AGMC Insured   NR/AA/NR   520,175
    Lehi, Utah Sales Tax Revenue        
1,220,000   4.000%, 06/01/35 Series 2019   NR/AA+/NR   1,261,419
    Lindon, Utah Sales Tax Revenue        
575,000   4.000%, 07/15/31 Series 2015   NR/AA-/NR   579,111
    Mapleton City, Utah Municipal Energy Sales & Sales Tax & Telecommunications Fee        
1,085,000   3.000%, 06/15/31 Series 2021   NR/A+/NR   1,066,121
780,000   3.000%, 06/15/33 Series 2021   NR/A+/NR   763,721
1,255,000   3.000%, 06/15/36 Series 2021   NR/A+/NR   1,184,431
    Miami-Dade County, Florida Transit System Sales Surtax Revenue        
1,000,000   5.000%, 07/01/34   A1/AA/AA   1,016,930
    Ogden City, Utah Franchise Tax Revenue        
1,625,000   3.000%, 01/15/31   NR/AA/NR   1,581,255
    Ogden City, Utah Sales Tax Revenue        
1,550,000   5.000%, 01/15/36 Series 2023   NR/AAA/NR   1,794,388
    Providence City, Utah Franchise & Sales Tax Revenue        
1,270,000   3.000%, 03/01/29 Series 2021   NR/A-/NR   1,226,071
    Riverton City, Utah Franchise & Sales Tax Revenue        
750,000   4.000%, 06/01/30   NR/AA+/AAA   758,055
    South Jordan, Utah Redevelopment Agency Subordinated Sales Tax & Tax Increment Revenue        
1,000,000   5.000%, 04/01/29   NR/AA/AAA   1,015,140

 

 

96  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Sales Tax (continued)        
    Spearfish, South Dakota Sales Tax Revenue        
$ 975,000   4.000%, 12/15/29 Series 2022   A1/NR/NR   $ 1,013,698
    St. George, Utah Sales Tax Revenue        
1,385,000   5.000%, 08/01/38 Series 2023   NR/AA+/NR   1,575,133
1,770,000   5.000%, 08/01/43 Series 2023   NR/AA+/NR   1,971,338
    Summit County, Utah Transportation Sales Tax Revenue        
1,200,000   4.000%, 12/15/28 Series 2018   NR/AA/NR   1,222,992
1,450,000   4.000%, 12/15/29 Series 2018   NR/AA/NR   1,479,885
    Tooele County, Utah Sales Tax Revenue        
750,000   5.000%, 09/01/41 Series 2023   NR/AA+/NR   819,803
    Utah Infrastructure Agency Telecommunications & Sales Tax,
West Haven		        
1,200,000   5.000%, 10/15/35 Series 2022   NR/AA-/NR   1,368,036
    Utah Transit Authority Sales Tax Revenue        
2,950,000   4.000%, 12/15/34 Series A   Aa2/AA+/AA   3,075,729
3,440,000   4.000%, 12/15/37 Series A   Aa2/AA+/AA   3,532,914
    Utah Transit Authority Sales Tax Revenue Subordinated        
1,000,000   5.000%, 12/15/32   Aa3/AA/AA   1,083,470
    Utah Transit Authority Sales Tax Revenue Subordinated,
Capital Appreciation		        
3,000,000   zero coupon, 12/15/32   Aa3/AA/AA   2,172,690
    Watertown, South Dakota Sales Tax Revenue        
1,110,000   3.000%, 12/01/34 Series 2021   NR/A/NR   1,089,287
335,000   5.000%, 12/01/24 Series 2022A BAMI Insured   NR/AA/NR   337,797
    West Valley City, Utah Sales Tax Revenue Capital Appreciation Bonds, Refunding        
3,375,000   zero coupon, 07/15/35   NR/AA+/NR   1,946,092
    Total Sales Tax       45,504,359
             

 

 

97  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    State Agency (4.7%)        
    Utah Infrastructure Agency Telecommunications, Franchise
& Sales Tax, Cedar Hills Project		        
$ 1,230,000   4.000%, 10/15/32 Series 2022   NR/A+/NR   $ 1,284,329
905,000   4.000%, 10/15/37 Series 2022   NR/A+/NR   918,792
1,125,000   4.250%, 10/15/42 Series 2022   NR/A+/NR   1,135,901
    Utah Infrastructure Agency Telecommunications &
Franchise Tax, Clearfield City		        
315,000   5.000%, 10/15/25 Series 2020   NR/A+/NR   321,798
    Utah Infrastructure Agency Telecommunications &
Franchise Tax, Layton City		        
500,000   5.000%, 10/15/30 Series 2018   NR/A+/NR   541,615
    Utah Infrastructure Agency Telecommunications &
Franchise Tax, Payson City		        
485,000   5.000%, 10/01/29 Series 2019   NR/A+/NR   516,981
640,000   4.000%, 10/01/34 Series 2019   NR/A+/NR   658,816
    Utah Infrastructure Agency Telecommunications, Franchise
& Sales Tax, Santa Clara Project		        
1,010,000   4.000%, 10/15/37 Series 2022   NR/A/NR   1,022,090
    Utah Infrastructure Agency Telecommunications, Franchise
& Sales Tax, Syracuse City Project		        
1,000,000   4.000%, 10/15/30 Series 2021   NR/AA-/NR   1,051,570
    Utah State Building Ownership Authority Lease Revenue State Facilities Master Lease Program        
1,000,000   5.000%, 05/15/24   Aa1/AA+/NR   1,001,280
905,000   4.000%, 05/15/29   Aa1/AA+/NR   939,987
1,775,000   3.000%, 05/15/29   Aa1/AA+/NR   1,745,145
1,000,000   3.000%, 05/15/29   Aa1/AA+/NR   976,160
940,000   4.000%, 05/15/30   Aa1/AA+/NR   976,340
    Total State Agency       13,090,804
             

 

 

98  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Transportation (0.8%)        
    Port Seattle, Washington Intermediate Lien Revenue        
$ 1,875,000   5.000%, 05/01/29 Series 2018A AMT   A1/AA-/AA-   $ 1,943,250
    Utah Transit Authority Sales Tax & Transportation Revenue        
195,000   5.250%, 06/15/32 AGMC Insured   Aa2/AA+/AA   224,583
    Total Transportation       2,167,833
             
    Water and Sewer (7.3%)        
    Brian Head, Utah Water Revenue Refunding        
720,000   3.000%, 04/01/36 Series 2021 AGMC Insured   NR/AA/NR   668,693
    Central Utah Water Conservancy District Refunding        
1,000,000   4.000%, 10/01/38 Series 2020D   NR/AA+/AA+   1,021,930
    Central Valley, Utah Water Reclamation Facility, Green Bond        
1,215,000   3.000%, 03/01/32 Series 2021B   NR/AA/AA   1,207,102
1,255,000   3.000%, 03/01/33 Series 2021B   NR/AA/AA   1,235,798
    Central Weber, Utah Sewer Improvement District        
550,000   5.000%, 03/01/36 Series 2023A   NR/AA/AAA   644,402
    Eagle Mountain, Utah Water & Sewer Revenue Refunding        
420,000   4.000%, 11/15/24 Series A BAMI Insured   NR/AA/NR   421,193
    Fairview City, Utah Water & Sewer Revenue Refunding        
725,000   4.000%, 06/15/46 Series 2022   NR/BBB/NR   631,069
    Florida State Governmental Utility Authority Refunding Revenue Bonds (Lehigh Utility System)        
500,000   5.000%, 10/01/31 Series 2014 AGMC Insured   A1/AA/NR   503,750
    Hooper, Utah Water Improvement District Revenue Refunding        
1,000,000   4.000%, 06/15/34 Series 2019   NR/AA-/NR   1,025,400
220,000   4.000%, 06/15/39 Series 2019   NR/AA-/NR   221,307

 

 

99  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Revenue Bonds (continued)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Water and Sewer (continued)        
    Jordan Valley, Utah Water Conservancy District Revenue        
$ 1,000,000   4.000%, 10/01/32 Series B   NR/AA+/AA+   $ 1,030,400
    Lakewood, Washington Water District, Pierce County        
750,000   4.000%, 12/01/37 Series 2019A AMT   NR/AA/NR   755,445
    Randall, South Dakota Community Water District        
1,030,000   5.000%, 12/01/37 Series 2023   NR/A/NR   1,134,679
    Salt Lake City, Utah Public Utilities Revenue        
1,000,000   5.000%, 02/01/32   Aa1/AAA/NR   1,029,990
1,400,000   5.000%, 02/01/33   Aa1/AAA/NR   1,441,986
1,000,000   5.000%, 02/01/35   Aa1/AAA/NR   1,029,090
500,000   4.000%, 02/01/37   Aa1/AAA/NR   521,935
    San Jacinto, Texas River Authority Woodlands Waste Disposal        
1,000,000   5.000%, 10/01/30 BAMI Insured   NR/AA/NR   1,000,330
    Utah Water Finance Agency Revenue        
1,000,000   4.000%, 03/01/34   NR/AA/AA   1,040,280
1,295,000   5.000%, 03/01/38   NR/AA/AA   1,400,581
    Weber Basin, Utah Water Conservancy District Refunding        
915,000   4.000%, 10/01/31 Series A   NR/AA+/AAA   915,558
    West Harris County, Texas Regional Water Authority        
815,000   5.000%, 12/15/26 Series A   A1/AA-/A+   832,131
    Vineyard, Utah Water & Sewer Revenue        
695,000   5.250%, 05/01/48 Series 2023 BAMI Insured   NR/AA/AA   760,691
    Total Water and Sewer       20,473,740
    Total Revenue Bonds       248,103,757
             

 

 

100  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Principal
Amount		   Pre-Refunded Bonds\Escrowed to Maturity Bonds (1.7%)††   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
    Pre-Refunded General Obligation Bonds (0.8%)        
    City and County (0.3%)        
    Miami Gardens, Florida        
$ 1,000,000   5.000%, 07/01/29   Aa3/A+/NR   $ 1,002,900
             
    Public Schools (0.5%)        
    Leander Independent School District, Texas (Williamson & Travis Counties) Unlimited Tax School Building        
2,035,000   zero coupon, 08/15/47 Series 2014 C PSF Guaranteed   NR/NR/NR*   573,300
    Wylie, Texas Independent School District Capital Appreciation        
1,000,000   zero coupon, 08/15/32 PSF Guaranteed   Aaa/NR/NR   733,800
    Total Public Schools       1,307,100
    Total Pre-Refunded General Obligation Bonds       2,310,000
             
    Pre-Refunded\Escrowed to Maturity Revenue Bonds (0.9%)        
    Charter Schools (0.3%)        
    Utah State Charter School Finance Authority Legacy
Preparatory Academy		        
140,000   4.000%, 04/15/24 ETM   NR/NR/NR*   140,008
820,000   5.000%, 04/15/29   NR/NR/NR*   826,298
    Total Charter Schools       966,306
             
    Sales Tax (0.6%)        
    Utah Transit Authority Sales Tax Revenue        
1,560,000   5.000%, 06/15/37 Series A   Aa3/AA/NR   1,592,074
    Total Pre-Refunded\Escrowed to Maturity Revenue Bonds        2,558,380
    Total Pre-Refunded\Escrowed to Maturity Bonds       4,868,380
    Total Municipal Bonds
(cost $277,264,790)		       271,747,682
             

 

 

101  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

Shares   Short-Term Investment (0.5%)   Ratings
Moody’s, S&P
and Fitch
(unaudited)		   Value
1,413,619   Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.20%** (cost $1,413,619)   Aaa-mf/AAAm/NR   $ 1,413,619
             
    Total Investments
(cost $278,678,409 - note 4)		   97.2%   273,161,301
    Other assets less liabilities   2.8    7,979,960
    Net Assets   100.0%   $281,141,261

 

 

Portfolio Distribution By Quality Rating (unaudited)   Percentage of
Investments†
Aaa of Moody's or AAA of S&P or Fitch   8.2%
Pre-refunded bonds\ ETM bonds††   1.8
Aa of Moody's or AA of S&P or Fitch   67.2
A of Moody's or S&P or Fitch   15.1
BBB of S&P   3.0
Not Rated*   4.7
    100.0%

 

 

PORTFOLIO ABBREVIATIONS

AGMC - Assured Guaranty Municipal Corp.

AMT - Alternative Minimum Tax

BAMAC - Build America Mutual Assurance Co.

BAMI - Build America Mutual Insurance

COP - Certificates of Participation

ETM - Escrowed to Maturity

FHA - Federal Housing Administration

IHC - Intermountain Health Care

NR - Not Rated

PAC - Planned Amortization Class

PSF - Permanent School Fund

VRDO – Variable Rate Demand Obligation

 

 

102  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

SCHEDULE OF INVESTMENTS (continued)

MARCH 31, 2024

 

 

* Any security not rated (“NR”) by any of the Nationally Recognized Statistical Rating Organizations (“NRSRO”) has been determined by the Investment Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a NRSRO.
   
** The rate is an annualized seven-day yield at period end.
   
*** Variable rate demand obligations (“VRDOs”) are payable upon demand within the same day for securities with daily liquidity or seven days for securities with weekly liquidity.
   
† Where applicable, calculated using the highest rating of the three NRSRO.  Percentages in this table do not include the Short-Term Investment.
   
†† Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date.  Escrowed to Maturity bonds are bonds where money has been placed in the escrow account which is used to pay principal and interest through the bond’s originally scheduled maturity date.  Escrowed to Maturity are shown as ETM.  All other securities in the category are pre-refunded.
   
  Note: 144A – Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2024, these securities amounted to a value of $12,796,228 or 4.6% of net assets.

 

 

 

 

 

See accompanying notes to financial statements.

 

103  |  Aquila Municipal Trust

 

 
 
 

 

 

STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2024

 

  AQUILA
TAX-FREE TRUST
OF ARIZONA		   AQUILA
TAX-FREE FUND
OF COLORADO
ASSETS          
Investments at value (cost $181,738,367 and $134,008,058 respectively) $ 178,995,833   $ 134,597,822
Interest receivable   1,810,982     1,701,984
Receivable for investment securities sold   963,800     —
Receivable for Fund Shares sold   3,544     6,242
Other assets   31,216     30,501
Total assets   181,805,375     136,336,549
LIABILITIES          
Payables:          
Fund shares redeemed   845,890     91,744
Dividends   63,458     39,816
Management fee   62,602     55,597
Auditing and tax fees   —     24,700
Transfer and shareholder servicing fee   —     20,509
Distribution and service fees payable   388     187
Other expenses   86,151     32,984
Total liabilities   1,058,489     265,537
NET ASSETS $ 180,746,886   $ 136,071,012
Net Assets consist of:          
Capital Stock – Authorized an unlimited number of shares, par value $0.01 per share $  184,781   $  138,650
Additional paid-in capital   190,374,413     145,715,651
Total distributable earnings (losses)   (9,812,308)     (9,783,289)
  $ 180,746,886   $ 136,071,012
CLASS A          
Net Assets $ 135,132,750   $  105,497,187
Capital shares outstanding   13,818,001     10,754,588
Net asset value and redemption price per share $  9.78   $  9.81
Maximum offering price per share
(100/97 of $9.78 and 100/97 of $9.81, respectively)		 $  10.08   $  10.11
CLASS C          
Net Assets $  1,777,724   $  1,387,966
Capital shares outstanding   181,927     141,913
Net asset value and offering price per share $  9.77   $  9.78
CLASS Y          
Net Assets $  43,836,412   $  29,185,859
Capital shares outstanding   4,478,186     2,968,486
Net asset value, offering and redemption price per share $  9.79   $  9.83

 

See accompanying notes to financial statements.

 

104  |  Aquila Municipal Trust

 

 

 
 
 

 

STATEMENT OF ASSETS AND LIABILITIES (continued)
MARCH 31, 2024

 

  AQUILA
CHURCHILL
TAX-FREE FUND
OF KENTUCKY		   AQUILA
TAX-FREE TRUST
OF OREGON
ASSETS          
Investments at value
(cost $160,957,242 and $406,480,479 respectively)		 $  155,291,122   $  404,651,897
Interest receivable   1,729,090     5,691,053
Receivable for Fund Shares sold   1,559     71,950
Other assets   28,914     60,325
Total assets   157,050,685     410,475,225
LIABILITIES          
Fund shares redeemed   117,839     1,682,106
Dividends   50,545     170,313
Management fee   53,230     139,985
Distribution and service fees payable   462     754
Other expenses   81,261     157,099
Total liabilities   303,337     2,150,257
NET ASSETS $  156,747,348   $  408,324,968
Net Assets consist of:          
Capital Stock – Authorized an unlimited number of shares,
par value $0.01 per share		 $  157,128   $  394,756
Additional paid-in capital   163,778,359     432,881,459
Total distributable earnings (losses)   (7,188,139)     (24,951,247)
  $  156,747,348   $  408,324,968
CLASS A          
Net Assets $  105,174,031   $  236,625,207
Capital shares outstanding   10,543,950     22,871,215
Net asset value and redemption price per share $  9.97   $  10.35
Maximum offering price per share
(100/97 of $9.97 and 100/97 of $10.35, respectively)		 $  10.28   $  10.67
CLASS C          
Net Assets $  1,184,883   $  2,455,684
Capital shares outstanding   118,811     237,485
Net asset value and offering price per share $  9.97   $  10.34
CLASS F          
Net Assets $  1,978,660   $  7,797,571
Capital shares outstanding   198,647     754,917
Net asset value, offering and redemption price per share $  9.96   $  10.33
CLASS I          
Net Assets $  6,180,211   $  —
Capital shares outstanding   619,748     —
Net asset value, offering and redemption price per share $  9.97   $  —
CLASS Y          
Net Assets $  42,229,563   $  161,446,506
Capital shares outstanding   4,231,616     15,611,964
Net asset value, offering and redemption price per share $  9.98   $  10.34

 

See accompanying notes to financial statements.

 

105  |  Aquila Municipal Trust

 

 
 
 

 

 

STATEMENT OF ASSETS AND LIABILITIES (continued)
MARCH 31, 2024

 

  AQUILA
NARRAGANSETT
TAX-FREE
INCOME FUND		   AQUILA
TAX-FREE FUND
FOR UTAH
ASSETS          
Investments at value
(cost $190,600,121 and $278,678,409 respectively)		 $  184,012,062   $  273,161,301
Receivable for investment securities sold   —     5,276,270
Interest receivable   2,289,775     3,623,362
Receivable for Fund Shares sold   48,211     214,327
Other assets   29,791     44,886
Total assets   186,379,839     282,320,146
LIABILITIES          
Fund shares redeemed   362,010     844,600
Dividends   155,756     72,154
Management fees   69,343     115,586
Distribution and service fees payable   198     539
Other expenses   99,096     146,006
Total liabilities   686,403     1,178,885
NET ASSETS $  185,693,436   $  281,141,261
Net Assets consist of:          
Capital Stock – Authorized an unlimited number of
shares, par value $0.01 per share		 $  183,740   $  289,883
Additional paid-in capital   196,809,378     302,091,539
Total distributable earnings (losses)   (11,299,682)     (21,240,161)
  $  185,693,436   $  281,141,261
CLASS A          
Net Assets $  88,234,016   $  144,319,895
Capital shares outstanding   8,728,028     14,902,441
Net asset value and redemption price per share $  10.11   $  9.68
Maximum offering price per share
(100/97 of $10.11 and 100/97 of $9.68, respectively)		 $  10.42   $  9.98
CLASS C          
Net Assets $  535,606   $  6,264,669
Capital shares outstanding   53,003     646,784
Net asset value and offering price per share $  10.11   $  9.69
CLASS F          
Net Assets $  4,830,595   $  3,796,860
Capital shares outstanding   479,102     389,207
Net asset value, offering and redemption price per share $  10.08   $  9.76
CLASS I          
Net Assets $  65,335   $  —
Capital shares outstanding   6,460     —
Net asset value, offering and redemption price per share $  10.11   $  —
CLASS Y          
Net Assets $  92,027,884   $  126,759,837
Capital shares outstanding   9,107,421     13,049,844
Net asset value, offering and redemption price per share $  10.10   $  9.71

 

See accompanying notes to financial statements.

 

106  |  Aquila Municipal Trust

 

 

 
 
 

 

STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 2024

 

  AQUILA
TAX-FREE TRUST
OF ARIZONA		   AQUILA
TAX-FREE FUND
OF COLORADO
Investment Income          
Interest income $  6,980,373   $  4,727,061
           
Expenses          
Investment Adviser fee (note 3) $ 779,408   $ 761,381
Distribution and service fee (note 3)   237,361     82,354
Legal fees   105,972     90,749
Transfer and shareholder servicing agent fees   75,511     87,534
Trustees’ fees and expenses (note 7)   72,558     57,058
Registration fees and dues   26,830     26,113
Auditing and tax fees   25,400     24,700
Shareholders’ reports   14,265     16,595
Insurance   12,025     10,290
Compliance services (note 3)   10,376     10,376
Custodian fees   6,662     5,235
Credit facility fees (note 10)   6,261     4,854
Miscellaneous   35,291     36,410
Total expenses   1,407,920     1,213,649
Management fee waived and/or reimbursed expenses (note 3)   —     (30,455)
Net expenses   1,407,920     1,183,194
           
Net investment income   5,572,453     3,543,867
           
Realized and Unrealized Gain (Loss) on Investments          
Net realized gain (loss) from securities transactions   (3,080,117)     (2,772,478)
Change in unrealized appreciation (depreciation) on investments   834,958     1,125,068
Net realized and unrealized gain (loss) on investments   (2,245,159)     (1,647,410)
Net change in net assets resulting from operations $ 3,327,294   $ 1,896,457

 

 

See accompanying notes to financial statements.

 

107  |  Aquila Municipal Trust

 

 
 
 

 

 

STATEMENT OF OPERATIONS (continued)
YEAR ENDED MARCH 31, 2024

 

  AQUILA
CHURCHILL
TAX-FREE FUND
OF KENTUCKY		   AQUILA
TAX-FREE TRUST
OF OREGON
Investment Income          
Interest income $ 5,127,832   $ 12,132,756
           
Expenses          
Investment Adviser fee (note 3) $ 642,267   $ 1,769,411
Distribution and service fee (note 3)   184,175     421,845
Legal fees   85,460     190,950
Transfer and shareholder servicing agent fees   82,651     210,622
Fund accounting fees   68,343     —
Trustees’ fees and expenses (note 7)   58,998     142,456
Registration fees and dues   35,810     48,919
Auditing and tax fees   24,100     34,300
Shareholders’ reports   14,073     26,635
Compliance services (note 3)   10,376     10,376
Insurance   9,490     27,546
Custodian fees   6,617     15,888
Credit facility fees (note 10)   5,193     14,242
Miscellaneous   22,787     44,105
Total expenses   1,250,340     2,957,295
Management fee waived and/or reimbursed expenses (note 3)   —     (8,471)
Net expenses   1,250,340     2,948,824
           
Net investment income   3,877,492     9,183,932
           
Realized and Unrealized Gain (Loss) on Investments          
Net realized gain (loss) from securities transactions   (833,593)     (7,082,998)
Change in unrealized appreciation (depreciation) on investments   (112,077)     1,957,443
Net realized and unrealized gain (loss) on investments   (945,670)     (5,125,555)
Net change in net assets resulting from operations $ 2,931,822   $ 4,058,377

 

 

See accompanying notes to financial statements.

 

108  |  Aquila Municipal Trust

 

 
 
 

 

 

STATEMENT OF OPERATIONS (continued)
YEAR ENDED MARCH 31, 2024

 

  AQUILA
NARRAGANSETT
TAX-FREE
INCOME FUND		   AQUILA
TAX-FREE FUND
FOR UTAH
Investment Income          
Interest income $ 5,640,640   $ 9,609,865
           
Expenses          
Investment Adviser fee (note 3) $ 966,110   $ 1,520,712
Distribution and service fee (note 3)   145,983     397,900
Transfer and shareholder servicing agent fees   108,642     180,798
Legal fees   93,098     136,860
Trustees’ fees and expenses (note 7)   71,324     107,170
Fund accounting fees   68,842     91,135
Registration fees and dues   41,484     45,753
Auditing and tax fees   25,500     29,800
Shareholders’ reports   16,731     17,595
Insurance   11,983     19,687
Compliance services (note 3)   10,376     10,361
Custodian fees   7,418     12,710
Credit facility fees (note 10)   6,221     9,678
Miscellaneous   15,890     21,970
Total expenses   1,589,602     2,602,129
Management fee waived and/or reimbursed expenses (note 3)   (135,419)      (60,828)
Net expenses   1,454,183     2,541,301
           
Net investment income   4,186,457     7,068,564
           
Realized and Unrealized Gain (Loss) on Investments          
Net realized gain (loss) from securities transactions   (1,917,576)     (4,172,166)
Change in unrealized appreciation (depreciation) on investments   823,048     1,799,250
Net realized and unrealized gain (loss) on investments   (1,094,528)     (2,372,916)
Net change in net assets resulting from operations $ 3,091,929   $ 4,695,648

 

 

See accompanying notes to financial statements.

 

109  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA
STATEMENT OF CHANGES IN NET ASSETS

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
OPERATIONS:            
Net investment income   $ 5,572,453   $ 4,976,679
Net realized gain (loss) from securities transactions     (3,080,117)     (3,676,604)
Change in unrealized appreciation (depreciation) on investments     834,958     (2,909,244)
Change in net assets resulting from operations     3,327,294     (1,609,169)
             
DISTRIBUTIONS TO SHAREHOLDERS (note 9):            
Class A Shares     (4,063,009)     (3,896,889)
Class C Shares     (38,420)     (50,696)
Class Y Shares     (1,411,346)     (1,358,255)
Change in net assets from distributions     (5,512,775)     (5,305,840)
             
CAPITAL SHARE TRANSACTIONS (note 7):            
Proceeds from shares sold     24,431,374     33,976,090
Reinvested dividends and distributions     4,557,840     4,330,637
Cost of shares redeemed     (51,431,598)     (74,444,593)
Change in net assets from capital share transactions     (22,442,384)     (36,137,866)
Change in net assets     (24,627,865)     (43,052,875)
             
NET ASSETS:            
Beginning of period     205,374,751     248,427,626
End of period   $ 180,746,886   $ 205,374,751

 

 

See accompanying notes to financial statements.

 

110  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO
STATEMENT OF CHANGES IN NET ASSETS

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
OPERATIONS:            
Net investment income   $ 3,543,867   $ 3,710,206
Net realized gain (loss) from securities transactions     (2,772,478)     (4,666,444)
Change in unrealized appreciation (depreciation) on investments     1,125,068     1,413,051
Change in net assets resulting from operations     1,896,457     456,813
             
DISTRIBUTIONS TO SHAREHOLDERS (note 9):            
Class A Shares     (2,697,336)     (2,623,775)
Class C Shares     (24,562)     (28,309)
Class Y Shares     (817,700)     (1,069,251)
Change in net assets from distributions     (3,539,598)     (3,721,335)
             
CAPITAL SHARE TRANSACTIONS (note 7):            
Proceeds from shares sold     9,398,224     26,684,830
Reinvested dividends and distributions     3,017,176     3,065,148
Cost of shares redeemed     (51,721,216)     (84,590,202)
Change in net assets from capital share transactions     (39,305,816)     (54,840,224)
Change in net assets     (40,948,957)     (58,104,746)
             
NET ASSETS:            
Beginning of period     177,019,969     235,124,715
End of period   $ 136,071,012   $ 177,019,969

 

 

See accompanying notes to financial statements.

 

111  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY
STATEMENT OF CHANGES IN NET ASSETS

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
OPERATIONS:            
Net investment income   $ 3,877,492   $ 3,856,439
Net realized gain (loss) from securities transactions     (833,593)     (694,653)
Change in unrealized appreciation (depreciation) on investments     (112,077)     (3,502,698)
Change in net assets resulting from operations     2,931,822     (340,912)
             
DISTRIBUTIONS TO SHAREHOLDERS (note 9):            
Class A Shares     (2,573,476)     (2,670,642)
Class C Shares     (25,173)     (42,566)
Class F Shares     (31,106)     (320)
Class I Shares     (136,158)     (133,166)
Class Y Shares     (1,110,781)     (1,094,253)
Change in net assets from distributions     (3,876,694)     (3,940,947)
             
CAPITAL SHARE TRANSACTIONS (note 7):            
Proceeds from shares sold     19,181,399     25,370,047
Reinvested dividends and distributions     3,229,021     3,233,465
Cost of shares redeemed     (31,700,026)     (36,245,727)
Change in net assets from capital share transactions     (9,289,606)     (7,642,215)
Change in net assets     (10,234,478)     (11,924,074)
             
NET ASSETS:            
Beginning of period     166,981,826     178,905,900
End of period   $ 156,747,348   $ 166,981,826

 

 

See accompanying notes to financial statements.

 

112  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON
STATEMENT OF CHANGES IN NET ASSETS

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
OPERATIONS:            
Net investment income   $ 9,183,932   $ 8,801,545
Net realized gain (loss) from securities transactions     (7,082,998)     (11,452,662)
Change in unrealized appreciation (depreciation) on investments     1,957,443     3,987,362
Change in net assets resulting from operations     4,058,377     1,336,245
             
DISTRIBUTIONS TO SHAREHOLDERS (note 9):            
Class A Shares     (5,316,348)     (5,506,085)
Class C Shares     (31,075)     (45,501)
Class F Shares     (154,829)     (108,260)
Class Y Shares     (3,681,678)     (3,452,942)
Change in net assets from distributions     (9,183,930)     (9,112,788)
             
CAPITAL SHARE TRANSACTIONS (note 7):            
Proceeds from shares sold     71,450,148     127,872,332
Reinvested dividends and distributions     7,195,596     7,379,661
Cost of shares redeemed     (137,870,692)     (246,482,295)
Change in net assets from capital share transactions     (59,224,948)     (111,230,302)
Change in net assets     (64,350,501)     (119,006,845)
             
NET ASSETS:            
Beginning of period     472,675,469     591,682,314
End of period   $ 408,324,968   $ 472,675,469

 

 

See accompanying notes to financial statements.

 

113  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
OPERATIONS:            
Net investment income   $ 4,186,457   $ 4,519,408
Net realized gain (loss) from securities transactions     (1,917,576)     (2,114,164)
Change in unrealized appreciation (depreciation) on investments     823,048     (3,496,724)
Change in net assets resulting from operations     3,091,929     (1,091,480)
             
DISTRIBUTIONS TO SHAREHOLDERS (note 9):            
Class A Shares     (1,929,910)     (2,102,435)
Class C Shares     (9,433)     (15,432)
Class F Shares     (112,384)     (110,116)
Class I Shares     (1,281)     (4,572)
Class Y Shares     (2,133,187)     (2,343,792)
Change in net assets from distributions     (4,186,195)     (4,576,347)
             
CAPITAL SHARE TRANSACTIONS (note 7):            
Proceeds from shares sold     21,919,286     28,565,369
Reinvested dividends and distributions     2,313,862     2,491,490
Cost of shares redeemed     (43,436,950)     (68,738,739)
Change in net assets from capital share transactions     (19,203,802)     (37,681,880)
Change in net assets     (20,298,068)     (43,349,707)
             
NET ASSETS:            
Beginning of period     205,991,504     249,341,211
End of period   $ 185,693,436   $ 205,991,504

 

 

See accompanying notes to financial statements.

 

114  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH
STATEMENT OF CHANGES IN NET ASSETS

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
OPERATIONS:            
Net investment income   $ 7,068,564   $ 7,893,755
Net realized gain (loss) from securities transactions     (4,172,166)     (6,769,413)
Change in unrealized appreciation (depreciation) on investments     1,799,250     (3,703,981)
Change in net assets resulting from operations     4,695,648     (2,579,639)
             
DISTRIBUTIONS TO SHAREHOLDERS (note 9):            
Class A Shares     (3,593,528)     (4,194,934)
Class C Shares     (114,079)     (161,045)
Class F Shares     (129,150)     (204,897)
Class Y Shares     (3,231,350)     (3,563,470)
Change in net assets from distributions     (7,068,107)     (8,124,346)
             
CAPITAL SHARE TRANSACTIONS (note 7):            
Proceeds from shares sold     43,669,425     84,684,805
Reinvested dividends and distributions     6,086,419     7,002,338
Cost of shares redeemed     (98,071,503)     (186,239,548)
Change in net assets from capital share transactions     (48,315,659)     (94,552,405)
Change in net assets     (50,688,118)     (105,256,390)
             
NET ASSETS:            
Beginning of period     331,829,379     437,085,769
End of period   $ 281,141,261   $ 331,829,379

 

 

See accompanying notes to financial statements.

 

115  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2024

 

1. Organization

Aquila Municipal Trust is a Massachusetts business trust formed in 1986. Prior to April 10, 2013, the Trust was named Tax-Free Trust of Arizona. Aquila Tax-Free Trust of Arizona, Aquila Tax-Free Fund of Colorado, Aquila Churchill Tax-Free Fund of Kentucky, Aquila Tax-Free Trust of Oregon, Aquila Narragansett Tax-Free Income Fund and Aquila Tax-Free Fund For Utah (each, a “Fund”) are series of Aquila Municipal Trust. Each Fund is an open-end, non-diversified management investment company.

Prior to October 11, 2013, Aquila Tax-Free Trust of Arizona was known as Tax-Free Trust of Arizona. Each of Aquila Tax-Free Fund of Colorado, Aquila Churchill Tax-Free Fund of Kentucky, Aquila Tax-Free Trust of Oregon, Aquila Narragansett Tax-Free Income Fund and Aquila Tax-Free Fund For Utah (each, a “Successor Fund”) is a series of Aquila Municipal Trust. Each Successor Fund was established in connection with the reorganization into the Fund of a fund with identical investment objectives and principal investment strategies as the Successor Fund (each, a “Predecessor Fund”) (each, a “Reorganization”), as follows:

 

Predecessor Fund Successor Fund Date of
Reorganization
Tax-Free Trust of Arizona Aquila Tax-Free Trust of Arizona October 11, 2013
Tax-Free Fund of Colorado Aquila Tax-Free Fund of Colorado October 11, 2013
Churchill Tax-Free Fund of Kentucky,
     a series of Churchill Tax Free Trust		 Aquila Churchill Tax-Free Fund of Kentucky October 11, 2013
Aquila Tax-Free Trust of Oregon,
     a series of The Cascades Trust		 Aquila Tax-Free Trust of Oregon June 26, 2020
Aquila Narragansett Tax-Free Income Fund Aquila Narragansett Tax-Free Income Fund October 11, 2013
Tax-Free Fund For Utah Aquila Tax-Free Fund For Utah October 11, 2013

 

Accordingly, the reorganizations, which were tax-free exchanges, had no effect on the respective Fund’s operations. All Funds are authorized to issue an unlimited number of shares. The reorganizations were accomplished by exchanging the assets and liabilities of the predecessor funds for shares of the successor Funds. Shareowners holding shares of the predecessor funds received corresponding shares of the successor Funds in a one-to-one exchange ratio in each reorganization.

 

Class A Shares are offered to investors at net asset value plus a sales charge, paid at the time of purchase, at the maximum rate of 3.0% of the public offering price, with lower rates for larger purchases including previous purchases of shares of any class of any of the funds in the Aquila Group of Funds. There is no sales charge on purchases of $250,000 or more, but redemptions of shares so purchased are generally subject to a contingent deferred sales charge (“CDSC”). Class A Shares of Aquila Tax-Free Trust of Arizona, Aquila Churchill Tax-Free Fund of Kentucky, Aquila Tax-Free Trust of Oregon and Aquila

 

116  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

Narragansett Tax-Free Income Fund are subject to a fee under the Fund’s Distribution Plan at the rate of up to 0.15 of 1% of the average annual net assets represented by the Class A Shares. Class A Shares of Aquila Tax-Free Fund of Colorado are subject to a fee under the Fund’s Distribution Plan at the rate of up to 0.15 of 1% (currently 0.075 of 1%) of the average annual net assets represented by the Class A Shares. Class A Shares of Aquila Tax-Free Fund For Utah are subject to a fee under the Fund’s Distribution Plan at the rate of 0.20 of 1% of the average annual net assets represented by the Class A Shares.

Class C Shares are offered to investors at net asset value with no sales charge payable at the time of purchase but with a level charge for service and distribution fees for six years after the date of purchase at the aggregate annual rate of 1% of the average annual net assets of the Class C Shares of each Fund. Six years after the date of purchase, Class C Shares are automatically converted to Class A Shares. If you redeem Class C Shares before you have held them for 12 months from the date of purchase you will pay a CDSC; this charge is 1%, calculated on the net asset value of the Class C Shares at the time of purchase or at redemption, whichever is less. There is no CDSC after Class C Shares have been held beyond the applicable period. For purposes of applying the CDSC and determining the time of conversion, the 12-month and six-year holding periods are considered modified by up to one month depending upon when during a month your purchase of such shares is made. Class C Shares are subject to a fee under each Fund’s Distribution Plan at the rate of 0.75 of 1% of the average annual net assets represented by the Class C Shares and a service fee of 0.25 of 1% of such assets.

Class F Shares (Aquila Churchill Tax-Free Fund of Kentucky, Aquila Tax-Free Trust of Oregon, Aquila Narragansett Tax-Free Income Fund and Aquila Tax-Free Fund For Utah only) are offered and sold only through financial intermediaries with which the Distributor has entered into sales agreements, and are not offered directly to retail customers. Class F Shares are offered at net asset value with no sales charge, no contingent deferred sales charge, and no distribution fee.

Class I Shares (Aquila Churchill Tax-Free Fund of Kentucky and Aquila Narragansett Tax-Free Income Fund only) are offered and sold only through financial intermediaries with which Aquila Distributors LLC has entered into sales agreements, and are not offered directly to retail customers. Class I Shares of each Fund are offered at net asset value with no sales charge and no redemption fee or contingent deferred sales charge, although a financial intermediary may charge a fee for effecting a purchase or other transaction on behalf of its customers. Class I Shares may carry a distribution fee of up to 0.25 of 1% of average annual net assets allocable to Class I Shares. A distribution fee of up to 0.15 of 1% of such net assets is currently authorized by the Board of Trustees of each Fund. In addition, Class I Shares of each Fund may pay a service fee of up to 0.25 of 1% of such assets.

Class Y Shares are offered and sold only through institutions acting for investors in a fiduciary, advisory, agency, custodial or similar capacity, and are not offered directly to retail customers. Class Y Shares of each Fund are offered at net asset value with no sales charge, no redemption fee, no contingent deferred sales charge and no distribution fee.

 

 

117  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

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 Funds in the preparation of their 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 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 ask quotations. If a market quotation or a valuation from the pricing service is not readily available, the security is valued using other fair value methods. Rule 2a-5 under the 1940 Act provides that in the event that market quotations are not readily available, such securities must be valued at their fair value as determined in good faith by each Fund’s Board of Trustees. Rule 2a-5 further provides that the Board may choose to designate a “valuation designee” to perform the fair value determination. The Aquila Municipal Trust Board has designated Aquila Investment Management LLC as the valuation designee (the “Valuation Designee”) to determine the fair value of Fund securities in good faith. Aquila Investment Management LLC as Valuation Designee, selects an appropriate methodology or methodologies for determining and calculating the fair value of the Funds’ investments and applies such methodology or methodologies in a consistent manner, including specifying the key inputs and assumptions specific to each asset class or portfolio holding.
b)Fair value measurements: The Funds follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ investments and are summarized in the following fair value hierarchy:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, based on the best information available.

 

 

118  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the valuation inputs, representing 100% of the Funds’ investments, used to value the Funds’ net assets as of March 31, 2024:

 

  Valuation Inputs AQUILA
TAX-FREE TRUST
OF ARIZONA		   AQUILA
TAX-FREE FUND
OF COLORADO
    Investments in Securities*
  Level 1 – Quoted Prices – Common Stocks,
Mutual Funds, and Short-Term Investments		 $ 4,238,429   $ 4,737,121
  Level 2 – Other Significant Observable Inputs   174,757,404     129,860,701
  Level 3 – Significant Unobservable Inputs   —     —
  Total $ 178,995,833   $ 134,597,822

 

  Valuation Inputs AQUILA
CHURCHILL
TAX-FREE FUND
OF KENTUCKY		   AQUILA
TAX-FREE TRUST
OF OREGON
    Investments in Securities*
  Level 1 – Quoted Prices – Common Stocks,
Mutual Funds, and Short-Term Investments		 $ 7,146,791   $ 4,832,800
  Level 2 – Other Significant Observable Inputs   148,144,331     399,819,097
  Level 3 – Significant Unobservable Inputs   —     —
  Total $ 155,291,122   $ 404,651,897

 

  Valuation Inputs AQUILA
NARRAGANSETT
TAX-FREE
INCOME FUND		   AQUILA
TAX-FREE FUND
FOR UTAH
    Investments in Securities*
  Level 1 – Quoted Prices – Common Stocks,
Mutual Funds, and Short-Term Investments		 $ 3,989,880   $ 1,413,619
  Level 2 – Other Significant Observable Inputs   180,022,182     271,747,682
  Level 3 – Significant Unobservable Inputs   —     —
  Total $ 184,012,062   $ 273,161,301

 

* See schedule of investments for a detailed listing of securities.

 

c)Subsequent events: In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date these financial statements were issued.
d)Securities transactions and related investment income: Securities transactions are recorded on the trade date. Realized gains and losses from securities transactions are reported on the identified cost basis. Interest income is recorded daily on the accrual basis and is adjusted for amortization of premium and accretion of original issue and market discount.

 

 

119  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

e)Federal income taxes: It is the policy of the Funds to continue to qualify as a regulated investment companies by complying with the provisions of the Internal Revenue Code applicable to certain investment companies. The Funds intend to make distributions of income and securities profits sufficient to relieve them from all, or substantially all, Federal income and excise taxes.

Management has reviewed the tax positions for each of the open tax years (2021 – 2023) or expected to be taken in the Funds’ 2024 tax returns and has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements.

f)Multiple Class Allocations: All income, expenses (other than class-specific expenses), and realized and unrealized gains or losses are allocated daily to each class of shares based on the relative net assets of each class. Class-specific expenses, which include distribution and service fees and any other items that are specifically attributed to a particular class, are also charged directly to such class on a daily basis.
g)Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
h)Reclassification of capital accounts: Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting.

For the year ended March 31, 2024,

·Aquila Tax-Free Trust of Arizona increased paid-in capital by $835 and decreased distributable earnings by $835;
·There were no other reclassifications with respect to the other Funds.

These reclassifications had no effect on net assets or net asset value per share.

i)Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services-Investment Companies”.

3. Fees and Related Party Transactions

a)Management Arrangements:

Aquila Investment Management LLC (the “Manager”), a wholly-owned subsidiary of Aquila Management Corporation, the Funds’ founder and sponsor, serves as the Manager

 

 

120  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

for the Funds under Advisory and Administration Agreements with each of the respective Funds. Under the Advisory and Administration Agreements, the Manager provides all investment management (except with respect to Aquila Narragansett Tax-Free Income Fund) and administrative services to the Funds. The Manager’s services include providing the office of the Funds and all related services as well as managing relationships with all the various support organizations to the Funds such as the transfer and shareholder servicing agent, custodian, legal counsel, fund accounting agent, auditors and distributor.

With respect to Aquila Narragansett Tax-Free Income Fund only, Clarfeld Financial Advisors, LLC, a wholly-owned subsidiary of Citizens Bank, N.A. (the “Sub-Adviser”), serves as the Investment Sub-Adviser for the Fund under a Sub-Advisory Agreement between the Manager and the Sub-Adviser. Under this agreement, the Sub-Adviser continuously provides, subject to oversight of the Manager and the Board of Trustees of the Fund, the investment program of the Fund and the composition of its portfolio, arranges for the purchases and sales of portfolio securities, and provides for daily pricing of the Fund’s portfolio.

For its services, for each Fund, the Manager is entitled to receive fees which are payable monthly and computed as of the close of business each day at the annual rate on the Fund’s net assets as follows:

 

Fund Annual Rate
Aquila Tax-Free Trust of Arizona 0.40%
Aquila Tax-Free Fund of Colorado 0.50%
Aquila Churchill Tax-Free Fund of Kentucky 0.40%
Aquila Tax-Free Trust of Oregon 0.40%
Aquila Narragansett Tax-Free Income Fund 0.50%
Aquila Tax-Free Fund For Utah 0.50%

 

Aquila Tax-Free Fund of Colorado

The Manager has contractually agreed to waive fees through September 30, 2024 as follows: the annual rate shall be equivalent to 0.48% of net assets of the Fund up to $400 million; 0.46% of the Fund’s net assets above that amount to $1 billion and 0.44% of the Fund’s net assets above $1 billion. The Manager may not terminate the arrangement without the approval of the Board of Trustees. For the year ended March 31, 2024, the Fund incurred management fees of $761,381 of which $30,455 was waived under the contractual fee waiver.

Aquila Tax-Free Trust of Oregon

The Manager has contractually agreed to waive its fees through September 30, 2024 as follows: the annual rate shall be equivalent to 0.40% of net assets of the Fund up to $400 million; 0.38% of the Fund’s net assets above that amount to $1 billion and 0.36%

 

 

121  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

of the Fund’s net assets above $1 billion. The Manager may not terminate the arrangement without the approval of the Board of Trustees. For the year ended March 31, 2024, the Fund incurred management fees of $1,769,411 of which $8,471 was waived.

Aquila Narragansett Tax-Free Income Fund

The Manager has contractually undertaken to waive its fees so that management fees are equivalent to 0.48 of 1% of net assets of the Fund up to $400,000,000; 0.46 of 1% of net assets above $400,000,000 up to $1,000,000,000; and 0.44 of 1% of net assets above $1,000,000,000. This contractual undertaking is in effect until September 30, 2024. The Manager may not terminate the arrangement without the approval of the Board of Trustees. For the year ended March 31, 2024, the Fund incurred management fees of $966,110 of which $135,419 was waived, which included supplemental fee waivers of $96,775 above and beyond the contractual fee waiver. These waivers are not reimbursable.

For the year ended March 31, 2024, the Sub-Adviser was entitled to receive a fee at the annual rate of 0.23 of 1% of the Fund’s Average annual net assets. The Sub-Adviser has contractually undertaken to waive its fees through September 30, 2024 to the extent necessary so that the annual sub-advisory fee rate is equivalent to 0.175% of 1% of the Fund’s average annual assets.

Aquila Tax-Free Fund For Utah

The Manager has contractually undertaken to waive its fees so that management fees are equivalent to 0.48 of 1% of net assets of the Fund up to $400,000,000; 0.46 of 1% of net assets above $400,000,000 up to $1,000,000,000; and 0.44 of 1% of net assets above $1,000,000,000. This contractual undertaking is currently in effect until September 30, 2024. The Manager may not terminate the arrangement without the approval of the Board of Trustees. For the year ended March 31, 2024, the Fund incurred management fees of $1,520,712 of which $60,828 was waived.

For Funds under Compliance Agreements with the Manager, the Manager is compensated by each Fund for compliance related services provided to enable the Funds to comply with Rule 38a-1 of the Investment Company Act of 1940, as amended (the “1940 Act”).

Specific details as to the nature and extent of the services provided by the Manager are more fully defined in the Funds’ Prospectus and Statement of Additional Information.

b)Distribution and Service Fees:

The Funds have adopted Distribution Plans (each, a “Plan”) pursuant to Rule 12b-1 (the “Rule”) under the 1940 Act. Under one part of each 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 LLC (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.

 

 

122  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

For the year ended March 31, 2024, these payments were as follows:

 

  Fund   Annual
Distribution
Fee Rate on
Class A		   Distribution
Fees on
Class A		   Amount
Retained by
Distributor
  Aquila Tax-Free Trust of Arizona   0.15%   $ 217,602   $ 24,752
  Aquila Tax-Free Fund of Colorado   0.075%   $   64,278   $   5,487
  Aquila Churchill Tax-Free Fund of Kentucky   0.15%   $ 161,614   $   9,629
  Aquila Tax-Free Trust of Oregon   0.15%   $ 394,972   $ 20,959
  Aquila Narragansett Tax-Free Income Fund   0.15%   $ 138,264   $ 10,643
  Aquila Tax-Free Fund For Utah   0.20%   $ 318,986   $ 10,586

 

Under another part of each 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. In addition, under a Shareholder Services Plan, each 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.

 

For the year ended March 31, 2024, these payments were as follows:

 

  Fund   Qualified
Recipients Fees
on Class C		   Shareholder
Services Fee
on Class C		   Amount
Retained by
Distributor
  Aquila Tax-Free Trust of Arizona   $ 14,819   $   4,940   $   4,883
  Aquila Tax-Free Fund of Colorado   $ 13,557   $   4,519   $   4,481
  Aquila Churchill Tax-Free Fund of Kentucky   $ 12,342   $   4,114   $   4,942
  Aquila Tax-Free Trust of Oregon   $ 20,155   $   6,718   $   8,201
  Aquila Narragansett Tax-Free Income Fund   $   5,740   $   1,913   $   2,283
  Aquila Tax-Free Fund For Utah   $ 59,186   $ 19,728   $ 19,555

 

With respect to Aquila Churchill Tax-Free Fund of Kentucky and Aquila Narragansett Tax-Free Income Fund, only under another part of the Plan, the Funds are authorized to make payments with respect to Class I Shares to Qualified Recipients. Class I payments, under the Plan, may not exceed for any fiscal year of the Fund a rate (currently 0.10%), set from time to time by the Board of Trustees, of not more than 0.25% of the average annual net assets represented by the Class I Shares. In addition, Class I has a Shareholder Services Plan under which it may pay service fees (currently 0.25%) of not more than 0.25% of the average annual net assets represented by Class I Shares. That is, the total payments under both plans will not exceed 0.50% of such net assets at the present time.

 

 

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NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

Aquila Churchill Tax-Free Fund of Kentucky

For the year ended March 31, 2024, these payments were made at the average annual rate of 0.35% of such net assets and amounted to $21,366 of which $6,105 related to the Plan and $15,261 related to the Shareholder Services Plan.

Aquila Narragansett Tax-Free Income Fund

For the year ended March 31, 2024, these payments were made at the average annual rate of 0.35% of such net assets and amounted to $231 of which $66 related to the Plan and $165 related to the Shareholder Services Plan.

Specific details about the Plans are more fully defined in the Funds’ Prospectus and Statement of Additional Information.

Under Distribution Agreements, the Distributor serves as the exclusive distributor of each Fund’s shares. Through agreements between the Distributor and various brokerage and advisory firms (“financial intermediaries”), the Fund’s shares are sold primarily through the facilities of these financial intermediaries having offices within the respective states of the various funds, with the bulk of any sales commissions inuring to such financial intermediaries.

For the year ended March 31, 2024, these payments were as follows:

 

  Fund   Total
Commissions
on Sale of
Class A Shares		   Received by
Distributor
  Aquila Tax-Free Trust of Arizona   $ 10,035   $ 2,970
  Aquila Tax-Free Fund of Colorado   $ 8,469   $ 3,630
  Aquila Churchill Tax-Free Fund of Kentucky   $ 34,482   $ 7,877
  Aquila Tax-Free Trust of Oregon   $ 17,203   $ 5,701
  Aquila Narragansett Tax-Free Income Fund   $ 24,022   $ 5,261
  Aquila Tax-Free Fund For Utah   $ 28,108   $ 7,917

 

c)Transfer and shareholder servicing fees:

 

The Funds occasionally compensate financial intermediaries in connection with the sub-transfer agency related services provided by such entities in connection with their respective Fund shareholders so long as the fees are deemed by the Board of Trustees to be reasonable in relation to (i) the value of the services and the benefits received by the Fund and certain shareholders; and (ii) the payments that the Fund would make to another entity to perform similar ongoing services to existing shareholders.

 

 

124  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

4. Purchases and Sales of Securities

During the year ended March 31, 2024:

 

  Fund   Purchases of
Securities 		  Proceeds from the Sales of Securities
(excluding
short- term Investments)
  Aquila Tax-Free Trust of Arizona   $  114,908,092   $  121,454,388
  Aquila Tax-Free Fund of Colorado   $  45,757,277   $  84,869,372
  Aquila Churchill Tax-Free Fund of Kentucky   $  18,379,802   $  32,055,417
  Aquila Tax-Free Trust of Oregon   $  92,987,895   $  142,754,155
  Aquila Narragansett Tax-Free Income Fund   $  13,083,569   $  31,160,258
  Aquila Tax-Free Fund For Utah   $  33,630,911   $  76,878,774

 

As of March 31, 2024, the tax cost of investments and the breakdown of unrealized appreciation (depreciation) for each Fund was as follows:

 

Fund   Tax Cost of Investments   Unrealized
Appreciation		   Unrealized
Depreciation		   Net
Unrealized
Appreciation/
(Depreciation)
Aquila Tax-Free Trust of Arizona $ 181,202,354 $ 1,725,027 $ 3,931,548 $ (2,206,521)
Aquila Tax-Free Fund of Colorado $ 133,964,989 $ 1,177,617 $ 544,785 $ 632,832
Aquila Churchill Tax-Free Fund of Kentucky $ 160,957,242 $ 479,869 $ 6,145,989 $ (5,666,120)
Aquila Tax-Free Trust of Oregon $ 406,480,479 $ 2,566,057 $ 4,394,639 $ (1,828,582)
Aquila Narragansett Tax-Free Income Fund $ 190,600,121 $ 339,956 $ 6,928,014 $ (6,588,058)
Aquila Tax-Free Fund For Utah $ 278,678,409 $ 1,102,564 $ 6,619,672 $ (5,517,108)

 

5. Portfolio Orientation

Aquila Tax-Free Trust of Arizona

Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Arizona, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Arizona and whatever effects these may have upon Arizona issuers’ ability to meet their obligations. The Fund is also permitted to invest in U.S. territorial municipal obligations meeting comparable quality standards and providing income which is exempt from both regular Federal and Arizona income taxes. The general policy of the Fund is to invest in such securities only when comparable securities of Arizona issuers are not available in the market. At March 31, 2024, the Fund had all of its long-term portfolio holdings invested in the securities of Arizona issuers.

 

 

125  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

Aquila Tax-Free Fund of Colorado

Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Colorado, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Colorado and whatever effects these may have upon Colorado issuers’ ability to meet their obligations. The Fund is also permitted to invest in U.S. territorial municipal obligations meeting comparable quality standards and providing income which is exempt from both regular Federal and Colorado income taxes. At March 31, 2024, the Fund had all of its long-term portfolio holdings invested in the securities of Colorado issuers.

Aquila Churchill Tax-Free Fund of Kentucky

Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Kentucky, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Kentucky and whatever effects these may have upon Kentucky issuers’ ability to meet their obligations. The Fund is also permitted to invest in U.S. territorial municipal obligations meeting comparable quality standards and providing income which is exempt from both regular Federal and Kentucky income taxes. At March 31, 2024, the Fund had all of its long-term portfolio holdings invested in municipal obligations of issuers within Kentucky.

Aquila Tax-Free Trust of Oregon

Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Oregon, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Oregon and whatever effects these may have upon Oregon issuers’ ability to meet their obligations. For example, Measure 5, a 1990 amendment to the Oregon Constitution, as well as Measures 47 and 50, limit the taxing and spending authority of certain Oregon governmental entities. These amendments could have an adverse effect on the general financial condition of certain municipal entities that would impair the ability of certain Oregon issuers to pay interest and principal on their obligations. The Fund is also permitted to invest in U.S. territorial municipal obligations meeting comparable quality standards and providing income which is exempt from both regular Federal and Oregon income taxes. At March 31, 2024, the Fund had 100% of its long-term portfolio holdings invested in municipal obligations of issuers within Oregon.

Aquila Narragansett Tax-Free Income Fund

Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Rhode Island, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Rhode Island and whatever effects these may have upon Rhode Island issuers’ ability to meet their obligations.

The Fund is also permitted to invest in U.S. territorial municipal obligations meeting comparable quality standards and providing income which is exempt from both regular

 

 

126  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

Federal and Rhode Island income taxes. The general policy of the Fund is to invest in such securities only when comparable securities of Rhode Island issuers are not available in the market. At March 31, 2024, the Fund had all of its long-term portfolio holdings invested in the securities of Rhode Island issuers.

Aquila Tax-Free Fund For Utah

At least 50% of the Fund’s assets will always consist of obligations of Utah-based issuers. At March 31, 2024, the Fund had 82% of its portfolio holdings invested in municipal obligations of issuers within Utah. The Fund is also permitted to invest in tax-free municipal obligations of non-Utah-based issuers that are exempt from regular Federal income taxes and, pursuant to Utah statutory authority, the interest on which is currently exempt from Utah individual income taxes. There can be no certainty as to the ongoing exemption from Utah individual income tax of the interest of non-Utah-based issuers. Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Utah, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Utah and whatever effects these may have upon Utah issuers’ ability to meet their obligations.

6. Trustees’ Fees and Expenses

At March 31, 2024, there were 8 Trustees, one of whom is affiliated with the Manager and is not paid any fees. Trustee expenses breakdown as Trustees’ service fees (for carrying out their responsibilities) and attendance fees paid during the period. Attendance fees are paid to those in attendance at regularly scheduled quarterly Board Meetings and meetings of the Independent Trustees held prior to each quarterly Board Meeting, as well as additional meetings (such as Audit, Nominating, Shareholder and special meetings). Trustees are reimbursed for their expenses such as travel, accommodations and meals incurred in connection with attendance at Board Meetings and the Annual Meetings of Shareholders.

During the year ended March 31, 2024, Trustees’ fees and expenses breakdown as follows:

 

  Fund   Trustees’
Service Fees 		  Trustees’
Expense
Reimbursements
  Aquila Tax-Free Trust of Arizona   $ 65,204   $ 7,354
  Aquila Tax-Free Fund of Colorado     54,325     2,733
  Aquila Churchill Tax-Free Fund of Kentucky     55,426     3,572
  Aquila Tax-Free Trust of Oregon     135,804     6,652
  Aquila Narragansett Tax-Free Income Fund     64,752     6,572
  Aquila Tax-Free Fund For Utah     96,739     10,431

 

 

127  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

7. Capital Share Transactions

Aquila Tax-Free Trust of Arizona

 

Transactions in Capital Shares of the Fund were as follows:

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
    Shares   Amount   Shares   Amount
Class A Shares:                    
Proceeds from shares sold    720,353   $ 7,055,349    1,359,410   $  13,382,079
Reinvested dividends and distributions    339,960      3,301,350    324,996      3,178,651
Cost of shares redeemed   (2,966,075)      (28,833,178)    (3,594,167)      (35,224,343)
Net change   (1,905,762)      (18,476,479)    (1,909,761)      (18,663,613)
                     
Class C Shares:                    
Proceeds from shares sold    14,455      139,067    27,949      276,153
Reinvested dividends and distributions    3,475      33,725    4,521      44,258
Cost of shares redeemed    (73,926)      (723,901)    (303,194)      (2,968,102)
Net change    (55,996)      (551,109)    (270,724)      (2,647,691)
                     
Class Y Shares:                    
Proceeds from shares sold   1,775,193      17,236,958    2,071,465      20,317,858
Reinvested dividends and distributions    125,793      1,222,765    113,118      1,107,728
Cost of shares redeemed   (2,265,084)      (21,874,519)    (3,699,404)      (36,252,148)
Net change    (364,098)      (3,414,796)    (1,514,821)      (14,826,562)
Total transactions in Fund shares   (2,325,856)   $ (22,442,384)    (3,695,306)   $  (36,137,866)

 

 

128  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

Aquila Tax-Free Fund of Colorado

 

Transactions in Capital Shares of the Fund were as follows:

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
    Shares   Amount   Shares   Amount
Class A Shares:                    
Proceeds from shares sold    298,605   $ 2,911,433    1,098,028   $  10,682,101
Reinvested dividends and distributions    236,757      2,303,945    231,630      2,263,078
Cost of shares redeemed   (3,093,283)      (29,986,517)    (3,387,310)      (33,121,108)
Net change   (2,557,921)      (24,771,139)    (2,057,652)      (20,175,929)
                     
Class C Shares:                    
Proceeds from shares sold    9,864      96,619    18,162      177,361
Reinvested dividends and distributions    2,454      23,809    2,844      27,718
Cost of shares redeemed    (120,669)      (1,170,650)    (218,864)      (2,137,213)
Net change    (108,351)      (1,050,222)    (197,858)      (1,932,134)
                     
Class Y Shares:                    
Proceeds from shares sold    653,211      6,390,172    1,613,008      15,825,368
Reinvested dividends and distributions    70,674      689,422    79,092      774,352
Cost of shares redeemed   (2,111,536)      (20,564,049)    (5,041,056)      (49,331,881)
Net change   (1,387,651)      (13,484,455)    (3,348,956)      (32,732,161)
Total transactions in Fund shares   (4,053,923)   $ (39,305,816)    (5,604,466)   $  (54,840,224)

 

 

129  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

Aquila Churchill Tax-Free Fund of Kentucky

 

Transactions in Capital Shares of the Fund were as follows:

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
    Shares   Amount   Shares   Amount
Class A Shares:                    
Proceeds from shares sold    883,017   $ 8,764,729    616,846   $  6,126,649
Reinvested dividends and distributions    236,051      2,325,436    243,218      2,412,332
Cost of shares redeemed   (1,812,389)      (17,863,136)    (1,670,464)      (16,564,312)
Net change    (693,321)      (6,772,971)    (810,400)      (8,025,331)
                     
Class C Shares:                    
Proceeds from shares sold    4,952      49,145    1,154      11,555
Reinvested dividends and distributions    2,431      23,924    4,055      40,232
Cost of shares redeemed    (114,378)      (1,132,294)    (152,941)      (1,518,081)
Net change    (106,995)      (1,059,225)    (147,732)      (1,466,294)
                     
Class F Shares:                    
Proceeds from shares sold    193,738      1,905,580    25,603      253,677
Reinvested dividends and distributions    3,155      31,105    32      320
Cost of shares redeemed    (23,879)      (235,362)    (2)      (15)
Net change    173,014      1,701,323    25,633      253,982
                     
Class I Shares:                    
Proceeds from shares sold   —     —   1     5
Reinvested dividends and distributions    13,821      136,145    13,431      133,168
Cost of shares redeemed    (13,031)      (128,228)    (13,779)      (136,619)
Net change    790      7,917    (347)      (3,446)
                     
Class Y Shares:                    
Proceeds from shares sold    854,928      8,461,945    1,920,139      18,978,161
Reinvested dividends and distributions    72,281      712,411    65,232      647,413
Cost of shares redeemed   (1,255,743)      (12,341,006)    (1,830,572)      (18,026,700)
Net change    (328,534)      (3,166,650)    154,799      1,598,874
Total transactions in Fund shares    (955,046)   $ (9,289,606)    (778,047)   $  (7,642,215)

 

 

130  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

Aquila Tax-Free Trust of Oregon

 

Transactions in Capital Shares of the Fund were as follows:

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
    Shares   Amount   Shares   Amount
Class A Shares:                    
Proceeds from shares sold    881,973   $ 9,070,682    2,503,450   $  25,875,518
Reinvested dividends and distributions    472,887     4,861,740    488,456     5,037,254
Cost of shares redeemed   (6,643,717)     (68,271,472)    (7,131,445)     (73,493,715)
Net change   (5,288,857)      (54,339,050)    (4,139,539)      (42,580,943)
                     
Class C Shares:                    
Proceeds from shares sold    60,380      626,551    43,267      447,137
Reinvested dividends and distributions    2,938      30,160    4,216      43,405
Cost of shares redeemed    (148,100)      (1,510,841)    (427,066)      (4,390,557)
Net change    (84,782)      (854,130)    (379,583)      (3,900,015)
                     
Class F Shares:                    
Proceeds from shares sold    301,323      3,103,194    293,279      3,018,860
Reinvested dividends and distributions    15,079      154,831    10,511      108,245
Cost of shares redeemed    (150,656)      (1,544,896)    (192,222)      (1,975,773)
Net change    165,746      1,713,129    111,568      1,151,332
                     
Class Y Shares:                    
Proceeds from shares sold   5,710,588      58,649,721    9,592,499      98,530,817
Reinvested dividends and distributions    209,161      2,148,865    212,625      2,190,757
Cost of shares redeemed   (6,492,910)      (66,543,483)    (16,219,126)      (166,622,250)
Net change    (573,161)      (5,744,897)    (6,414,002)      (65,900,676)
Total transactions in Fund shares   (5,781,054)   $ (59,224,948)    (10,821,556)   $  (111,230,302)

 

 

131  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

Aquila Narragansett Tax-Free Income Fund

 

Transactions in Capital Shares of the Fund were as follows:

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
    Shares   Amount   Shares   Amount
Class A Shares:                    
Proceeds from shares sold    676,271   $ 6,754,144    615,527   $  6,158,698
Reinvested dividends and distributions    138,087      1,377,583    150,173      1,504,226
Cost of shares redeemed   (1,910,624)      (19,110,931)    (2,218,593)      (22,245,456)
Net change   (1,096,266)      (10,979,204)    (1,452,893)      (14,582,532)
                     
Class C Shares:                    
Proceeds from shares sold    5,149      51,606    11,661      116,861
Reinvested dividends and distributions    809      8,066    1,174      11,773
Cost of shares redeemed    (51,221)      (508,247)    (107,277)      (1,071,896)
Net change    (45,263)      (448,575)    (94,442)      (943,262)
                     
Class F Shares:                    
Proceeds from shares sold    129,187      1,290,886    311,373      3,107,313
Reinvested dividends and distributions    11,289      112,384    11,017      110,113
Cost of shares redeemed    (194,826)      (1,941,252)    (193,072)      (1,936,689)
Net change    (54,350)      (537,982)    129,318      1,280,737
                     
Class I Shares:                    
Proceeds from shares sold   1      5   1        13   
Reinvested dividends and distributions    106      1,066    411      4,111
Cost of shares redeemed    (540)      (5,447)    (24,111)      (241,788)
Net change    (433)      (4,376)    (23,699)      (237,664)
                     
Class Y Shares:                    
Proceeds from shares sold    1,389,915      13,822,645    1,900,590      19,182,484
Reinvested dividends and distributions    81,686      814,763    86,014      861,267
Cost of shares redeemed   (2,196,314)      (21,871,073)    (4,319,419)      (43,242,910)
Net change    (724,713)      (7,233,665)    (2,332,815)      (23,199,159)
Total transactions in Fund shares    (1,921,025)   $ (19,203,802)    (3,774,531)   $  (37,681,880)

 

 

132  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

Aquila Tax-Free Fund For Utah

 

Transactions in Capital Shares of the Fund were as follows:

 

    Year Ended
March 31, 2024		   Year Ended
March 31, 2023
    Shares   Amount   Shares   Amount
Class A Shares:                    
Proceeds from shares sold    1,202,497   $ 11,537,807    3,089,845   $  29,799,037
Reinvested dividends and distributions    323,919      3,101,395    376,276      3,624,290
Cost of shares redeemed   (4,972,102)     (47,388,401)    (7,600,622)      (73,208,173)
Net change   (3,445,686)     (32,749,199)    (4,134,501)      (39,784,846)
                     
Class C Shares:                    
Proceeds from shares sold    53,990      516,800    145,689      1,402,613
Reinvested dividends and distributions    11,457      109,676    15,895      153,085
Cost of shares redeemed    (434,940)      (4,163,545)    (787,783)      (7,605,227)
Net change    (369,493)      (3,537,069)    (626,199)      (6,049,529)
                     
Class F Shares:                    
Proceeds from shares sold    175,544      1,699,575    348,791      3,401,443
Reinvested dividends and distributions    13,420      129,150    21,159      204,899
Cost of shares redeemed    (501,646)      (4,833,506)    (778,321)      (7,542,773)
Net change    (312,682)      (3,004,781)    (408,371)      (3,936,431)
                     
Class Y Shares:                    
Proceeds from shares sold    3,101,181      29,915,243    5,176,739      50,081,712
Reinvested dividends and distributions    286,077      2,746,198    312,773      3,020,064
Cost of shares redeemed   (4,339,538)     (41,686,051)    (10,151,902)      (97,883,375)
Net change    (952,280)      (9,024,610)    (4,662,390)      (44,781,599)
Total transactions in Fund shares    (5,080,141)   $ (48,315,659)    (9,831,461)   $  (94,552,405)

 

 

133  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

8. Securities Traded on a When-Issued Basis

The Funds 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. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities.

9. Income Tax Information and Distributions

The Funds declare dividends daily from net investment income and makes payments monthly. Net realized capital gains, if any, are distributed annually and are taxable. These distributions are paid in additional shares at the net asset value per share or in cash, at the shareholder’s option.

The Funds 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 income taxes. Due to differences between financial statement reporting and Federal income tax reporting requirements, distributions made by the Funds may not be the same as the respective Fund’s net investment income, and/or net realized securities gains. Further, a small portion of the dividends may, under some circumstances, be subject to taxes at ordinary income rates. For certain shareholders some dividend income may, under some circumstances, be subject to the Alternative Minimum Tax. As a result of the passage of the Regulated Investment Company Act of 2010 (the “Act”), losses incurred in this fiscal year and beyond retain their character as short-term or long-term, have no expiration and are utilized before capital losses incurred prior to the enactment of the Act.

Aquila Tax-Free Trust of Arizona

At March 31, 2024, the Fund had capital loss carry forwards of $7,164,979, $2,473,216 is short-term and $4,691,763 is long-term. Both have no expiration date. As of March 31, 2024, the Fund had post-October losses of $471,750, which is deferred until fiscal 2024 for tax purposes.

Aquila Tax-Free Fund of Colorado

At March 31, 2024, the Fund had capital loss carry forwards of $10,278,149 of which $3,924,959 retains its character of short-term and $6,353,190 retains its character of long-term; both have no expiration. This carryover is available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code. As of March 31, 2024, the Fund had post-October losses of $137,823, which is deferred until fiscal 2024 for tax purposes.

 

 

134  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

Aquila Churchill Tax-Free Fund of Kentucky

At March 31, 2024, the Fund had capital loss carry forwards of $1,059,416 of which $675,352 retains its character of short-term and $384,064 retains is character of long-term; both have no expiration. This carryover is available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code. As of March 31, 2024, the Fund had post-October losses of $474,592, which is deferred until fiscal 2024 for tax purposes.

Aquila Tax-Free Trust of Oregon

At March 31, 2024, the Fund had capital loss carry forwards of $21,631,578 of which $4,622,170 retains its character of short-term and $17,009,408 retains its character of long-term; both have no expiration. As of March 31, 2024, the Fund had post-October losses of $1,505,398, which is deferred until fiscal 2024 for tax purposes.

Aquila Narragansett Tax-Free Income Fund

At March 31, 2024, the Fund had capital loss carry forwards of $3,448,531 of which $1,085,694 retains its character of short-term and $2,362,837 retains its character of long-term; both have no expiration. This carryover is available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code. As of March 31, 2024, the Fund had post-October losses of $1,263,566, which is deferred until fiscal 2024 for tax purposes.

Aquila Tax-Free Fund For Utah

At March 31, 2024, the Fund had capital loss carry forwards of $14,288,086 of which $4,435,893 retains its character of short-term and $9,852,193 retains its character of long-term; both have no expiration. As of March 31, 2024, the Fund had post-October losses of $1,435,993, which is deferred until fiscal 2024 for tax purposes.

The tax character of distributions was as follows:

 

      Aquila
Tax-Free Trust
of Arizona		   Aquila
Tax-Free Fund
of Colorado
      Year Ended March 31,   Year Ended March 31,
        2024     2023     2024     2023
  Net tax-exempt income   $ 5,067,649   $ 5,180,813   $ 3,349,580   $ 3,657,262
  Ordinary income     445,126     125,027     190,018     64,073
      $ 5,512,775   $ 5,305,840   $ 3,539,598   $ 3,721,335

 

 

135  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

As of March 31, 2024, the components of distributable earnings on a tax basis were:

 

      Aquila
Tax-Free Trust
of Arizona		   Aquila
Tax-Free Fund
of Colorado
  Undistributed tax-exempt income   $ 94,400   $ 39,667
  Unrealized appreciation (depreciation)     (2,206,521)     632,832
  Accumulated net realized loss on investments     (7,164,979)     (10,278,149)
  Post-October losses     (471,750)     (137,823)
  Other temporary differences     (63,458)     (39,816)
      $ (9,812,308)   $ (9,783,289)

 

The tax character of distributions was as follows:

 

      Aquila
Churchill
Tax-Free Fund
of Kentucky		   Aquila
Tax-Free Trust
of Oregon
      Year Ended March 31,   Year Ended March 31,
        2024     2023     2024     2023
  Net tax-exempt income   $ 3,805,701   $ 3,869,954   $ 8,907,953   $ 8,973,520
  Ordinary income     70,993     70,993     275,977     139,268
      $ 3,876,694   $ 3,940,947   $ 9,183,930   $ 9,112,788

 

As of March 31, 2024, the components of distributable earnings on a tax basis were:

 

      Aquila
Churchill
Tax-Free Fund
of Kentucky		   Aquila
Tax-Free Trust
ofOregon
  Undistributed tax-exempt income   $ 62,534   $ 184,624
  Unrealized depreciation     (5,666,120)     (1,828,582)
  Accumulated net realized loss on investments     (1,059,416)     (21,631,578)
  Post-October losses     (474,592)     (1,505,398)
  Other temporary differences     (50,545)     (170,313)
      $ (7,188,139)   $ (24,951,247)

 

 

136  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

The tax character of distributions was as follows:

 

      Aquila
Narragansett
Tax-Free
Income Fund		   Aquila
Tax-Free Fund
For Utah
      Year Ended March 31,   Year Ended March 31,
        2024     2023     2024     2023
  Net tax-exempt income   $ 4,103,664   $ 4,506,171   $ 6,869,104   $ 8,033,612
  Ordinary income     82,531     70,176     199,003     90,734
      $ 4,186,195   $ 4,576,347   $ 7,068,107   $ 8,124,346

 

As of March 31, 2024, the components of distributable earnings on a tax basis were:

 

      Aquila
Narragansett
Tax-Free
Income Fund		   Aquila
Tax-Free Fund
For Utah
  Undistributed tax-exempt income   $ 156,229   $ 73,180
  Unrealized depreciation     (6,588,058)     (5,517,108)
  Accumulated net realized loss on investments     (3,448,531)     (14,288,086)
  Post-October losses     (1,263,566)     (1,435,993)
  Other temporary differences     (155,756)     (72,154)
      $ (11,299,682)   $ (21,240,161)

 

The difference between book basis and tax basis unrealized appreciation and undistributed income is due to the timing difference, and other temporary differences, in recognizing dividends paid, the tax treatment of market discount amortization, and the deduction of distributions payable.

10. Credit Facility

Since August 30, 2017, Bank of New York Mellon and the Aquila Group of Funds (comprised of nine funds) have been parties to a $40 million credit agreement, which currently terminates on August 21, 2024 (per the August 23, 2023 amendment). In accordance with the Aquila Group of Funds Guidelines for Allocation of Committed Line of Credit, each fund is responsible for payment of its proportionate share of

a)a 0.17% per annum commitment fee; and,
b)interest on amounts borrowed for temporary or emergency purposes by the fund (at the applicable per annum rate selected by the Aquila Group of Funds at the time of the borrowing of either (i) the adjusted daily simple Secured Overnight Financing Rate (“SOFR”) plus 1% or (ii) the sum of the higher of (a) the Prime Rate, (b) the Federal Funds Effective Rate, or (c) the adjusted daily simple Secured Overnight Financing Rate plus 1%).

 

 

137  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

There were no borrowings under the credit agreement during the year ended March 31, 2024.

11. Risks

Mutual fund investing involves risk and loss of principal is possible. The market prices of the Funds’ securities may rise or decline in value due to general market conditions, such as real or perceived adverse economic, political or regulatory conditions, political instability, recessions, inflation, changes in interest rates, lack of liquidity in the bond markets, the spread of infectious illness or other public health issues, weather or climate events, armed conflict, sanctions or other government actions, market disruptions caused by tariffs, trade disputes or other factors, or adverse investor sentiment. When market prices fall, the value of your investment may go down. In the past decade, financial markets have experienced increased volatility, depressed valuations, decreased liquidity and heightened uncertainty. These conditions may continue, recur, worsen or spread.

The long-term impact of the COVID-19 pandemic and its subsequent variants on economies, markets, industries and individual issuers, are not known. Some sectors of the economy and individual issuers have experienced or may experience particularly large losses. Periods of extreme volatility in the financial markets, reduced liquidity of many instruments, increased government debt, inflation, and disruptions to supply chains, consumer demand and employee availability, may continue for some time.

Raising the ceiling on U.S. government debt has become increasingly politicized. Any failure to increase the total amount that the U.S. government is authorized to borrow could lead to a default on U.S. government obligations, with unpredictable consequences for economies and markets in the U.S. and elsewhere. Inflation and interest rates have increased and may rise further. These circumstances could adversely affect the value and liquidity of the Funds’ investments, impair the Funds’ ability to satisfy redemption requests, and negatively impact the Funds’ performance.

Economies and financial markets throughout the world are increasingly interconnected. Economic, financial or political events, trading and tariff arrangements, public health events, terrorism, wars, natural disasters and other circumstances in one country or region could have profound impacts on global economies or markets. As a result, whether or not the Funds invest in securities of issuers located in or with significant exposure to the countries or markets directly affected, the value and liquidity of the Funds’ investments may be negatively affected. Following Russia’s invasion of Ukraine, Russian securities lost all, or nearly all, their market value. Other securities or markets could be similarly affected by past or future political, geopolitical or other events or conditions. Furthermore, events involving limited liquidity, defaults, non-performance or other adverse developments that affect one industry, such as the financial services industry, or concerns or rumors about any events of these kinds, have in the past and may in the future lead to market-wide liquidity problems, may spread to other industries, and could negatively affect the value and liquidity of the Funds’ investments.

 

 

138  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

Governments and central banks, including the U.S. Federal Reserve, have taken extraordinary and unprecedented actions to support local and global economies and the financial markets. These actions have resulted in significant expansion of public debt, including in the U.S. The consequences of high public debt, including its future impact on the economy and securities markets, may not be known for some time.

The U.S. and other countries are periodically involved in disputes over trade and other matters, which may result in tariffs, investment restrictions and adverse impacts on affected companies and securities. For example, the U.S. has imposed tariffs and other trade barriers on Chinese exports, has restricted sales of certain categories of goods to China, and has established barriers to investments in China. Trade disputes may adversely affect the economies of the U.S. and its trading partners, as well as companies directly or indirectly affected and financial markets generally. If the political climate between the U.S. and China does not improve or continues to deteriorate, if China were to attempt unification of Taiwan by force, or if other geopolitical conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally and globally, and the value of the Funds’ assets may go down.

The value of your investment will generally go down when interest rates rise. A rise in interest rates tends to have a greater impact on the prices of longer term or longer duration securities. In recent years, interest rates and credit spreads in the U.S. have been at historic lows. The U.S. Federal Reserve has raised certain interest rates, and interest rates may continue to go up. A general rise in interest rates may cause investors to move out of fixed income securities on a large scale and could also result in increased redemptions from the Funds.

Investments in the Funds are subject to possible loss due to the financial failure of the issuers of underlying securities and their inability to meet their debt obligations.

The value of municipal securities can be adversely affected by changes in the financial condition of one or more individual municipal issuers or insurers of municipal issuers, regulatory developments, legislative actions, and by uncertainties and public perceptions concerning these and other factors. The Funds may be affected significantly by adverse economic, political or other events affecting state and other municipal issuers in which they invest, and may be more volatile than a more geographically diverse fund. The municipal bond market can be susceptible to unusual volatility, particularly for lower-rated and unrated securities. Liquidity can be reduced unpredictably in response to overall economic conditions or credit tightening. Municipal issuers may be adversely affected by rising health care costs, increasing unfunded pension liabilities, and by the phasing out of federal programs providing financial support. Unfavorable conditions and developments relating to projects financed with municipal securities can result in lower revenues to issuers of municipal securities, potentially resulting in defaults. Municipal securities may be more susceptible to downgrades or defaults during a recession or similar periods of economic stress. Financial difficulties of municipal issuers may continue or get worse, particularly in the event of political, economic or market turmoil or a recession.

A portion of income may be subject to local, state, Federal and/or alternative minimum tax. Capital gains, if any, are subject to capital gains tax.

These risks may result in share price volatility.

 

 

139  |  Aquila Municipal Trust

 

 
 
 

 

 

NOTES TO FINANCIAL STATEMENTS (continued)
MARCH 31, 2024

 

12. Recent Events

On March 12, 2024, the Manager and New York Life Investment Management LLC (“New York Life Investments”) announced that they have entered into a definitive agreement for the Manager to sell assets used in its investment advisory business relating to the Funds to New York Life Investments (the “transaction”).

Under the terms of the agreement, subject to Fund shareholder approval, each of the Funds are expected to be reorganized into either an existing series or newly created series of MainStay Funds Trust (collectively, the “MainStay Funds”) (each, a “Reorganization” and collectively, the “Reorganizations”), and subsequently will be advised by New York Life Investments and subadvised by MacKay Shields LLC. The Board of Trustees of the Trust has unanimously approved each of the proposed Reorganizations. The proposed Reorganizations are listed below:

 

Aquila Funds Acquiring MainStay Funds
Aquila Tax-Free Trust of Arizona MainStay MacKay Arizona Muni Fund
Aquila Tax-Free Fund of Colorado MainStay MacKay Colorado Muni Fund
Aquila Churchill Tax-Free Fund of Kentucky MainStay MacKay Strategic Municipal Allocation Fund
Aquila Tax-Free Trust of Oregon MainStay MacKay Strategic Municipal Allocation Fund
Aquila Narragansett Tax-Free Income Fund MainStay MacKay Oregon Muni Fund
Aquila Tax-Free Fund For Utah MainStay MacKay Utah Muni Fund

 

Each Reorganization is contingent upon the completion of certain conditions, including approval by the shareholders of the applicable Fund. If all conditions are satisfied and approvals obtained, the transaction and proposed Reorganizations are expected to close in the third quarter of 2024. The solicitation of proxies to effect each Reorganization will be made by a final, effective Registration Statement on Form N-14, which includes a definitive Proxy Statement/Prospectus, after that Registration Statement is declared effective by the Securities and Exchange Commission (the “SEC”). Fund shareholders are urged to read the Proxy Statement/Prospectus relating to the Reorganization of their Fund and other documents filed with the SEC carefully and in their entirety. The Proxy Statement/Prospectus contains information with respect to the investment objectives, risks, charges and expenses of the MainStay Funds and other important information that Fund shareholders should carefully consider.

 

 

140  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

FINANCIAL HIGHLIGHTS

 

 

For a share outstanding throughout each period

 

    Class A
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period     $9.87   $10.14   $10.82   $10.68   $10.61
Income (loss) from investment operations:                    
Net investment income(1)   0.28   0.22   0.23   0.25   0.27
Net gain (loss) on securities
(both realized and unrealized)		   (0.10)   (0.25)   (0.69)   0.14   0.07
Total from investment operations   0.18   (0.03)   (0.46)   0.39   0.34
Less distributions (note 9):                    
Dividends from net investment income   (0.27)   (0.24)   (0.22)   (0.25)   (0.27)
Distributions from capital gains   —   —   —   —   —
Total distributions   (0.27)   (0.24)   (0.22)   (0.25)   (0.27)
Net asset value, end of period   $9.78   $9.87   $10.14   $10.82   $10.68
Total return (not reflecting sales charge)   1.91%   (0.27)%   (4.32)%   3.63%   3.16%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $135   $155   $179   $198   $199
Ratio of expenses to average net assets   0.75%   0.74%   0.69%   0.71%   0.74%
Ratio of net investment income to average net assets   2.83%   2.26%   2.11%   2.30%   2.49%
Portfolio turnover rate   66%   32%   35%   11%   21%

 

 

                                              

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

141  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

FINANCIAL HIGHLIGHTS (continued)

 

 

For a share outstanding throughout each period

 

    Class C
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $9.86   $10.13   $10.81   $10.67   $10.61
Income (loss) from investment operations:                    
Net investment income(1)   0.19   0.14   0.14   0.16   0.18
Net gain (loss) on securities
(both realized and unrealized)		   (0.09)   (0.26)   (0.69)   0.13   0.05
Total from investment operations   0.10   (0.12)   (0.55)   0.29   0.23
Less distributions (note 9):                    
Dividends from net investment income   (0.19)   (0.15)   (0.13)   (0.15)   (0.17)
Distributions from capital gains   —   —   —   —   —
Total distributions   (0.19)   (0.15)   (0.13)   (0.15)   (0.17)
Net asset value, end of period   $9.77   $9.86   $10.13   $10.81   $10.67
Total return (not reflecting CDSC)   1.04%   (1.11)%   (5.13)%   2.76%   2.20%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $2   $2   $5   $7   $8
Ratio of expenses to average net assets   1.60%   1.59%   1.54%   1.56%   1.59%
Ratio of net investment income to average net assets   1.97%   1.39%   1.26%   1.45%   1.65%
Portfolio turnover rate   66%   32%   35%   11%   21%

 

 

                                              

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

142  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

FINANCIAL HIGHLIGHTS (continued)

 

 

For a share outstanding throughout each period

 

    Class Y
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $9.88   $10.15   $10.84   $10.69   $10.63
Income (loss) from investment operations:                    
Net investment income(1)   0.29   0.24   0.24   0.26   0.28
Net gain (loss) on securities
(both realized and unrealized)		   (0.09)   (0.26)   (0.69)   0.15   0.06
Total from investment operations   0.20   (0.02)   (0.45)   0.41   0.34
Less distributions (note 9):                    
Dividends from net investment income   (0.29)   (0.25)   (0.24)   (0.26)   (0.28)
Distributions from capital gains   —   —   —   —   —
Total distributions   (0.29)   (0.25)   (0.24)   (0.26)   (0.28)
Net asset value, end of period   $9.79   $9.88   $10.15   $10.84   $10.69
Total return (not reflecting sales charge)   2.06%   (0.11)%   (4.26)%   3.88%   3.21%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $44   $48   $65   $75   $53
Ratio of expenses to average net assets   0.60%   0.59%   0.54%   0.56%   0.60%
Ratio of net investment income to average net assets   2.98%   2.41%   2.26%   2.44%   2.62%
Portfolio turnover rate   66%   32%   35%   11%   21%

 

 

                                              

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

143  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

FINANCIAL HIGHLIGHTS

 

 

For a share outstanding throughout each period

 

 

    Class A
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $9.87   $9.99   $10.64   $10.56   $10.46
Income from investment operations:                    
Net investment income(1)   0.23   0.18   0.16   0.18   0.22
Net gain (loss) on securities
(both realized and unrealized)		   (0.06)   (0.12)   (0.65)   0.08   0.10
Total from investment operations   0.17   0.06   (0.49)   0.26   0.32
Less distributions (note 9):                    
Dividends from net investment income   (0.23)   (0.18)   (0.16)   (0.18)   (0.22)
Distributions from capital gains   —   —   —   —   —
Total distributions   (0.23)   (0.18)   (0.16)   (0.18)   (0.22)
Net asset value, end of period   $9.81   $9.87   $9.99   $10.64   $10.56
Total return (not reflecting sales charge)   1.74%   0.65%   (4.67)%   2.48%   3.03%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $105   $131   $154   $179   $186
Ratio of expenses to average net assets   0.78%   0.72%   0.69%   0.69%   0.71%
Ratio of net investment income to average net assets   2.33%   1.85%   1.52%   1.69%   2.04%
Portfolio turnover rate   31%   12%   14%   7%   13%

 

Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):

 

Ratio of expenses to average net assets   0.80%   0.74%   0.71%   0.71%   0.73%
Ratio of net investment income to average net assets   2.31%   1.83%   1.50%   1.67%   2.02%

 

 

                                              

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

144  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

FINANCIAL HIGHLIGHTS (continued)

 

 

For a share outstanding throughout each period

 

 

    Class C
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $9.85   $9.97   $10.62   $10.54   $10.44
Income from investment operations:                    
Net investment income(1)   0.13   0.09   0.06   0.08   0.12
Net gain (loss) on securities
(both realized and unrealized)		   (0.06)   (0.12)   (0.65)   0.08   0.10
Total from investment operations   0.07   (0.03)   (0.59)   0.16   0.22
Less distributions (note 9):                    
Dividends from net investment income   (0.14)   (0.09)   (0.06)   (0.08)   (0.12)
Distributions from capital gains   —   —   —   ––   ––
Total distributions   (0.14)   (0.09)   (0.06)   (0.08)   (0.12)
Net asset value, end of period   $9.78   $9.85   $9.97   $10.62   $10.54
Total return (not reflecting CDSC)   0.68%   (0.30)%   (5.58)%   1.51%   2.06%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $1   $2   $4   $7   $8
Ratio of expenses to average net assets   1.72%   1.67%   1.63%   1.64%   1.66%
Ratio of net investment income to average net assets   1.36%   0.89%   0.58%   0.75%   1.09%
Portfolio turnover rate   31%   12%   14%   7%   13%

 

Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):

 

Ratio of expenses to average net assets   1.74%   1.69%   1.65%   1.66%   1.68%
Ratio of net investment income to average net assets   1.34%   0.87%   0.56%   0.73%   1.07%

 

 

                                              

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

145  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

FINANCIAL HIGHLIGHTS (continued)

 

 

For a share outstanding throughout each period

 

 

    Class Y
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $9.90   $10.01   $10.66   $10.58   $10.49
Income from investment operations:                    
Net investment income(1)   0.23   0.19   0.17   0.19   0.22
Net gain (loss) on securities
(both realized and unrealized)		   (0.07)   (0.11)   (0.65)   0.08   0.09
Total from investment operations   0.16   0.08   (0.48)   0.27   0.31
Less distributions (note 9):                    
Dividends from net investment income   (0.23)   (0.19)   (0.17)   (0.19)   (0.22)
Distributions from capital gains   —   —   —   ––   ––
Total distributions   (0.23)   (0.19)   (0.17)   (0.19)   (0.22)
Net asset value, end of period   $9.83   $9.90   $10.01   $10.66   $10.58
Total return   1.70%   0.82%   (4.60)%   2.53%   2.98%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $29   $43   $77   $96   $72
Ratio of expenses to average net assets   0.72%   0.67%   0.63%   0.64%   0.66%
Ratio of net investment income to average net assets   2.37%   1.89%   1.58%   1.74%   2.09%
Portfolio turnover rate   31%   12%   14%   7%   13%

 

Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):

 

Ratio of expenses to average net assets   0.74%   0.69%   0.65%   0.66%   0.68%
Ratio of net investment income to average net assets   2.35%   1.87%   1.56%   1.72%   2.07%

 

 

                                              

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

146  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

FINANCIAL HIGHLIGHTS

 

For a share outstanding throughout each period

 

    Class A
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.02   $10.25   $10.93   $10.79   $10.64
Income from investment operations:                    
Net investment income(1)   0.24   0.22   0.22   0.23   0.24
Net gain (loss) on securities
(both realized and unrealized)		   (0.05)   (0.22)   (0.67)   0.14   0.15
Total from investment operations   0.19   —   (0.45)   0.37   0.39
Less distributions (note 9):                    
Dividends from net investment income   (0.24)   (0.23)   (0.22)   (0.23)   (0.24)
Distributions from capital gains   —   —   (0.01)   —   —
Total distributions   (0.24)   (0.23)   (0.23)   (0.23)   (0.24)
Net asset value, end of period   $9.97   $10.02   $10.25   $10.93   $10.79
Total return (not reflecting sales charge)   1.90%   0.05%   (4.25)%   3.48%   3.72%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $105   $113   $124   $135   $142
Ratio of expenses to average net assets   0.81%   0.76%   0.75%   0.77%   0.80%
Ratio of net investment income to average net assets   2.39%   2.26%   1.99%   2.14%   2.26%
Portfolio turnover rate   12%   10%   7%   7%        6%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

147  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

FINANCIAL HIGHLIGHTS (continued)

 

For a share outstanding throughout each period

 

    Class C
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.02   $10.25   $10.93   $10.78   $10.64
Income from investment operations:                    
Net investment income(1)   0.15   0.14   0.12   0.14   0.15
Net gain (loss) on securities
(both realized and unrealized)		   (0.05)   (0.22)   (0.67)   0.15   0.14
Total from investment operations   0.10   (0.08)   (0.55)   0.29   0.29
Less distributions (note 9):                    
Dividends from net investment income   (0.15)   (0.15)   (0.12)   (0.14)   (0.15)
Distributions from capital gains   —   —   (0.01)   —   —
Total distributions   (0.15)   (0.15)   (0.13)   (0.14)   (0.15)
Net asset value, end of period   $9.97   $10.02   $10.25   $10.93   $10.78
Total return (not reflecting CDSC)   1.04%   (0.80)%   (5.06%)   2.70%   2.75%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $1.2   $2   $4   $5   $6
Ratio of expenses to average net assets   1.65%   1.61%   1.60%   1.62%   1.65%
Ratio of net investment income to average net assets   1.53%   1.41%   1.13%   1.29%   1.41%
Portfolio turnover rate   12%   10%   7%   7%        6%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

148  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

FINANCIAL HIGHLIGHTS (continued)

 

For a share outstanding throughout each period

 

    Class F
        For the
        Period
        December 21,
    Year   2022*
    Ended   through
    March 31,   March 31,
    2024   2023
Net asset value, beginning of period   $10.01   $9.91
Income (loss) from investment operations:        
Net investment income(1)   0.25   0.06
Net gain (loss) on securities
(both realized and unrealized)		   (0.05)   0.13
Total from investment operations   0.20   0.19
Less distributions (note 9):        
Dividends from net investment income   (0.25)   (0.09)
Distributions from capital gains   —   —
Total distributions   (0.25)   (0.09)
Net asset value, end of period   $9.96   $10.01
Total return   2.08%   1.88%(2)
Ratios/supplemental data        
Net assets, end of period (in millions)   $2   $0.3
Ratio of expenses to average net assets   0.64%   0.56%(3)
Ratio of net investment income to average net assets   2.55%   2.30%(3)
Portfolio turnover rate   12%    10%

 

 

                                                           

 

*     Commencement of operations.

(1)   Per share amounts have been calculated using the daily average shares method.

(2)   Not annualized.

(3)   Annualized.

 

 

149  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

FINANCIAL HIGHLIGHTS (continued)

 

For a share outstanding throughout each period

 

    Class I
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.01   $10.25   $10.92   $10.78   $10.64
Income from investment operations:                    
Net investment income(1)   0.22   0.21   0.20   0.22   0.23
Net gain on securities
(both realized and unrealized)		   (0.04)   (0.23)   (0.66)   0.14   0.14
Total from investment operations   0.18   (0.02)   (0.46)   0.36   0.37
Less distributions (note 9):                    
Dividends from net investment income   (0.22)   (0.22)   (0.20)   (0.22)   (0.23)
Distributions from capital gains   —   —   (0.01)   —   —
Total distributions   (0.22)   (0.22)   (0.21)   (0.22)   (0.23)
Net asset value, end of period   $9.97   $10.01   $10.25   $10.92   $10.78
Total return   1.85%   (0.20)%   (4.31)%   3.33%   3.48%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $6   $6   $6   $7   $7
Ratio of expenses to average net assets   0.96%   0.91%   0.91%   0.92%   0.93%
Ratio of net investment income to average net assets   2.23%   2.11%   1.84%   1.99%   2.12%
Portfolio turnover rate   12%   10%   7%   7%        6%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

150  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

FINANCIAL HIGHLIGHTS (continued)

 

For a share outstanding throughout each period

 

    Class Y
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.02   $10.26   $10.93   $10.79   $10.65
Income from investment operations:                    
Net investment income(1)   0.25   0.24   0.23   0.25   0.26
Net gain (loss) on securities
(both realized and unrealized)		   (0.04)   (0.24)   (0.66)   0.14   0.14
Total from investment operations   0.21   —   (0.43)   0.39   0.40
Less distributions (note 9):                    
Dividends from net investment income   (0.25)   (0.24)   (0.23)   (0.25)   (0.26)
Distributions from capital gains   —   —   (0.01)   —   —
Total distributions   (0.25)   (0.24)   (0.24)   (0.25)   (0.26)
Net asset value, end of period   $9.98   $10.02   $10.26   $10.93   $10.79
Total return   2.16%   0.10%   (4.01)%   3.64%   3.78%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $42   $46   $45   $40   $27
Ratio of expenses to average net assets   0.66%   0.61%   0.60%   0.62%   0.65%
Ratio of net investment income to average net assets   2.54%   2.41%   2.14%   2.28%   2.41%
Portfolio turnover rate   12%   10%   7%   7%        6%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

151  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

FINANCIAL HIGHLIGHTS

 

For a share outstanding throughout each period

 

    Class A
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.45   $10.55   $11.25   $11.13   $10.98
Income (loss) from investment operations:                    
Net investment income(1)   0.21   0.18   0.16   0.18   0.21
Net gain (loss) on securities
(both realized and unrealized)		   (0.10)   (0.10)   (0.70)   0.12   0.15
Total from investment operations   0.11   0.08   (0.54)   0.30   0.36
Less distributions (note 9):                    
Dividends from net investment income   (0.21)   (0.18)   (0.16)   (0.18)   (0.21)
Distributions from capital gains   —   ––   ––   ––   —
Total distributions   (0.21)   (0.18)   (0.16)   (0.18)   (0.21)
Net asset value, end of period   $10.35   $10.45   $10.55   $11.25   $11.13
Total return (not reflecting sales charge)   1.07%   0.84%   (4.89)%   2.68%   3.30%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $237   $294   $341   $379   $375
Ratio of expenses to average net assets   0.72%   0.70%   0.66%   0.71%   0.71%
Ratio of net investment income to average net assets   2.02%   1.72%   1.41%   1.57%   1.90%
Portfolio turnover rate   22%   12%   13%   5%   12%

 

Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):

 

Ratio of expenses to average net assets   0.72%   0.70%   0.67%   0.72%   0.72%
Ratio of net investment income to average net assets   2.02%   1.72%   1.40%   1.56%   1.89%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

152  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

FINANCIAL HIGHLIGHTS (continued)

 

For a share outstanding throughout each period

 

    Class C
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.43   $10.54   $11.23   $11.12   $10.97
Income (loss) from investment operations:                    
Net investment income(1)   0.12   0.09   0.06   0.08   0.12
Net gain (loss) on securities
(both realized and unrealized)		   (0.09)   (0.10)   (0.69)   0.11   0.15
Total from investment operations   0.03   (0.01)   (0.63)   0.19   0.27
Less distributions (note 9):                    
Dividends from net investment income   (0.12)   (0.10)   (0.06)   (0.08)   (0.12)
Distributions from capital gains   —   ––   ––   ––   —
Total distributions   (0.12)   (0.10)   (0.06)   (0.08)   (0.12)
Net asset value, end of period   $10.34   $10.43   $10.54   $11.23   $11.12
Total return (not reflecting CDSC)   0.31%   (0.11)%   (5.62)%   1.72%   2.43%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $2   $3   $7   $13   $16
Ratio of expenses to average net assets   1.57%   1.55%   1.51%   1.56%   1.56%
Ratio of net investment income to average net assets   1.16%   0.85%   0.56%   0.73%   1.05%
Portfolio turnover rate   22%   12%   13%   5%   12%

 

Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):

 

Ratio of expenses to average net assets   1.57%   1.55%   1.52%   1.57%   1.57%
Ratio of net investment income to average net assets   1.15%   0.85%   0.55%   0.72%   1.04%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

153  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

FINANCIAL HIGHLIGHTS (continued)

 

For a share outstanding throughout each period

 

    Class F
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.43   $10.53   $11.22   $11.11   $10.95
Income (loss) from investment operations:                    
Net investment income(1)   0.23   0.20   0.18   0.20   0.23
Net gain (loss) on securities
(both realized and unrealized)		   (0.10)   (0.10)   (0.69)   0.11   0.16
Total from investment operations   0.13   0.10   (0.51)   0.31   0.39
Less distributions (note 9):                    
Dividends from net investment income   (0.23)   (0.20)   (0.18)   (0.20)   (0.23)
Distributions from capital gains   —   —   —   —   —
Total distributions   (0.23)   (0.20)   (0.18)   (0.20)   (0.23)
Net asset value, end of period   $10.33   $10.43   $10.53   $11.22   $11.11
Total return   1.25%   1.02%   (4.64)%   2.77%   3.58%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $8   $6   $5   $4   $2
Ratio of expenses to average net assets   0.55%   0.52%   0.48%   0.53%   0.53%
Ratio of net investment income to average net assets   2.21%   1.91%   1.59%   1.73%   2.05%
Portfolio turnover rate   22%      12%   13%        5%       12%

 

Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):

 

Ratio of expenses to average net assets   0.55%   0.53%   0.49%   0.54%   0.54%
Ratio of net investment income to average net assets   2.21%   1.90%   1.58%   1.72%   2.04%

 

 

                                                           

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

154  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

FINANCIAL HIGHLIGHTS (continued)

 

For a share outstanding throughout each period

 

    Class Y
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.44   $10.55   $11.24   $11.12   $10.97
Income (loss) from investment operations:                    
Net investment income(1)   0.22   0.19   0.17   0.19   0.23
Net gain (loss) on securities
(both realized and unrealized)		   (0.10)   (0.10)   (0.69)   0.13   0.15
Total from investment operations   0.12   0.09   (0.52)   0.32   0.38
Less distributions (note 9):                    
Dividends from net investment income   (0.22)   (0.20)   (0.17)   (0.20)   (0.23)
Distributions from capital gains   —   ––   ––   —   —
Total distributions   (0.22)   (0.20)   (0.17)   (0.20)   (0.23)
Net asset value, end of period   $10.34   $10.44   $10.55   $11.24   $11.12
Total return   1.22%   0.90%   (4.66)%   2.83%   3.46%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $161   $169   $238   $281   $235
Ratio of expenses to average net assets   0.57%   0.55%   0.51%   0.56%   0.56%
Ratio of net investment income to average net assets   2.17%   1.87%   1.56%   1.71%   2.04%
Portfolio turnover rate   22%   12%   13%   5%   12%

 

Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):

 

Ratio of expenses to average net assets   0.57%   0.55%   0.52%   0.57%   0.57%
Ratio of net investment income to average net assets   2.17%   1.87%   1.55%   1.71%   2.03%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

155  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

FINANCIAL HIGHLIGHTS

 

For a share outstanding throughout each period

 

    Class A
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.15   $10.36   $11.02   $10.91   $10.74
Income (loss) from investment operations:                    
Net investment income(1)   0.21   0.20   0.20   0.23   0.25
Net gain (loss) on securities
(both realized and unrealized)		   (0.04)   (0.21)   (0.66)   0.11   0.17
Total from investment operations   0.17   (0.01)   (0.46)   0.34   0.42
Less distributions (note 9):                    
Dividends from net investment income   (0.21)   (0.20)   (0.20)   (0.23)   (0.25)
Distributions from capital gains   —   —   —   —   —
Total distributions   (0.21)   (0.20)   (0.20)   (0.23)   (0.25)
Net asset value, end of period   $10.11   $10.15   $10.36   $11.02   $10.91
Total return (not reflecting sales charge)   1.71%   (0.05)%   (4.26)%   3.09%   3.89%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $88   $100   $117   $125   $120
Ratio of expenses to average net assets   0.83%   0.81%   0.76%   0.78%   0.79%
Ratio of net investment income to average net assets   2.09%   1.97%   1.82%   2.04%   2.25%
Portfolio turnover rate   7%   3%   12%   7%       6%

 

Expense and net investment income ratios without the effect of the contractual fee waiver expense cap and/or contractual fee waiver, as well as additional voluntary fee waivers were (note 3):

 

Ratio of expenses to average net assets   0.90%   0.88%   0.84%   0.86%   0.87%
Ratio of net investment income to average net assets   2.02%   1.90%   1.75%   1.96%   2.17%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

156  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

FINANCIAL HIGHLIGHTS (continued)

 

For a share outstanding throughout each period

 

    Class C
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.15   $10.36   $11.02   $10.91   $10.74
Income (loss) from investment operations:                    
Net investment income(1)   0.12   0.11   0.11   0.13   0.15
Net gain (loss) on securities
(both realized and unrealized)		   (0.04)   (0.21)   (0.66)   0.11   0.17
Total from investment operations   0.08   (0.10)   (0.55)   0.24   0.32
Less distributions (note 9):                    
Dividends from net investment income   (0.12)   (0.11)   (0.11)   (0.13)   (0.15)
Distributions from capital gains   —   —   —   ––   —
Total distributions   (0.12)   (0.11)   (0.11)   (0.13)   (0.15)
Net asset value, end of period   $10.11   $10.15   $10.36   $11.02   $10.91
Total return (not reflecting CDSC)   0.85%   (0.90)%   (5.07)%   2.21%   3.01%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $1   $1   $2   $3   $5
Ratio of expenses to average net assets   1.67%   1.65%   1.61%   1.64%   1.65%
Ratio of net investment income to average net assets   1.23%   1.11%   0.97%   1.20%   1.41%
Portfolio turnover rate   7%   3%   12%   7%        6%

 

Expense and net investment income ratios without the effect of the contractual fee waiver expense cap and/or contractual fee waiver, as well as additional voluntary fee waivers were (note 3):

 

Ratio of expenses to average net assets   1.74%   1.73%   1.69%   1.71%   1.73%
Ratio of net investment income to average net assets   1.16%   1.04%   0.90%   1.13%   1.33%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

157  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

FINANCIAL HIGHLIGHTS (continued)

 

For a share outstanding throughout each period

 

    Class F
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.13   $10.34   $11.00   $10.89   $10.72
Income (loss) from investment operations:                    
Net investment income(1)   0.23   0.22   0.22   0.24   0.26
Net gain (loss) on securities
(both realized and unrealized)		   (0.05)   (0.21)   (0.66)   0.11   0.17
Total from investment operations   0.18   0.01   (0.44)   0.35   0.43
Less distributions (note 9):                    
Dividends from net investment income   (0.23)   (0.22)   (0.22)   (0.24)   (0.26)
Distributions from capital gains   —   —   —   —   —
Total distributions   (0.23)   (0.22)   (0.22)   (0.24)   (0.26)
Net asset value, end of period   $10.08   $10.13   $10.34   $11.00   $10.89
Total return   1.79%   0.14%   (4.10)%   3.27%   4.08%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $5   $5   $4   $2   $1.5
Ratio of expenses to average net assets   0.65%   0.62%   0.58%   0.60%   0.61%
Ratio of net investment income to average net assets   2.27%   2.16%   1.99%   2.21%   2.41%
Portfolio turnover rate   7%   3%   12%        7%        6%

 

Expense and net investment income ratios without the effect of the contractual fee waiver, as well as additional voluntary fee waivers were (note 3):

 

Ratio of expenses to average net assets   0.72%   0.70%   0.66%   0.68%   0.69%
Ratio of net investment income to average net assets   2.20%   2.09%   1.92%   2.13%   2.33%

 

 

                                                           

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

158  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

FINANCIAL HIGHLIGHTS (continued)

 

 

For a share outstanding throughout each period

 

    Class I
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.16   $10.37   $11.03   $10.91   $10.74
Income (loss) from investment operations:                    
Net investment income(1)   0.19   0.18   0.18   0.21   0.23
Net gain (loss) on securities
(both realized and unrealized)		   (0.05)   (0.20)   (0.66)   0.12   0.17
Total from investment operations   0.14   (0.02)   (0.48)   0.33   0.40
Less distributions (note 9):                    
Dividends from net investment income   (0.19)   (0.19)   (0.18)   (0.21)   (0.23)
Distributions from capital gains   —   —   —   ––   —
Total distributions   (0.19)   (0.19)   (0.18)   (0.21)   (0.23)
Net asset value, end of period   $10.11   $10.16   $10.37   $11.03   $10.91
Total return   1.47%   (0.18)%   (4.39)%   3.03%   3.74%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $0.1   $0.1   $0.3   $0.3   $0.2
Ratio of expenses to average net assets   0.97%   0.94%   0.91%   0.93%   0.94%
Ratio of net investment income to average net assets   1.95%   1.82%   1.67%   1.89%   2.10%
Portfolio turnover rate   7%   3%   12%   7%   6%

 

Expense and net investment income ratios without the effect of the contractual fee waiver expense cap and/or contractual fee waiver, as well as additional voluntary fee waivers were (note 3):

 

Ratio of expenses to average net assets   1.04%   1.01%   0.99%   1.00%   1.02%
Ratio of net investment income to average net assets   1.88%   1.75%   1.60%   1.81%   2.02%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

159  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

FINANCIAL HIGHLIGHTS (continued)

 

 

For a share outstanding throughout each period

 

    Class Y
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $10.15   $10.36   $11.02   $10.91   $10.74
Income (loss) from investment operations:                    
Net investment income(1)   0.22   0.21   0.22   0.24   0.26
Net gain (loss) on securities
(both realized and unrealized)		   (0.05)   (0.20)   (0.66)   0.11   0.17
Total from investment operations   0.17   0.01   (0.44)   0.35   0.43
Less distributions (note 9):                    
Dividends from net investment income   (0.22)   (0.22)   (0.22)   (0.24)   (0.26)
Distributions from capital gains   —   —   —   ––   —
Total distributions   (0.22)   (0.22)   (0.22)   (0.24)   (0.26)
Net asset value, end of period   $10.10   $10.15   $10.36   $11.02   $10.91
Total return   1.76%   0.10%   (4.11)%   3.24%   4.05%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $92   $100   $126   $126   $117
Ratio of expenses to average net assets   0.68%   0.66%   0.61%   0.63%   0.64%
Ratio of net investment income to average net assets   2.24%   2.12%   1.97%   2.19%   2.40%
Portfolio turnover rate   7%   3%   12%   7%       6%

 

Expense and net investment income ratios without the effect of the contractual fee waiver expense cap and/or contractual fee waiver, as well as additional voluntary fee waivers were (note 3):

 

Ratio of expenses to average net assets   0.75%   0.73%   0.69%   0.71%   0.72%
Ratio of net investment income to average net assets   2.17%   2.05%   1.90%   2.11%   2.32%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

160  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

FINANCIAL HIGHLIGHTS

 

 

For a share outstanding throughout each period

 

    Class A
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $9.73   $9.94   $10.60   $10.50   $10.36
Income (loss) from investment operations:                    
Net investment income(1)   0.22   0.20   0.18   0.21   0.24
Net gain (loss) on securities
(both realized and unrealized)		   (0.05)   (0.20)   (0.66)   0.10   0.14
Total from investment operations   0.17   —   (0.48)   0.31   0.38
Less distributions (note 9):                    
Dividends from net investment income   (0.22)   (0.21)   (0.18)   (0.21)   (0.24)
Distributions from capital gains   —   —   —   —   —
Total distributions   (0.22)   (0.21)   (0.18)   (0.21)   (0.24)
Net asset value, end of period   $9.68   $9.73   $9.94   $10.60   $10.50
Total return (not reflecting sales charge)   1.76%   0.01%   (4.58)%   2.93%   3.72%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $144   $178   $224   $252   $229
Ratio of expenses to average net assets   0.91%   0.87%   0.82%   0.85%   0.88%
Ratio of net investment income to average net assets   2.25%   2.07%   1.73%   1.94%   2.31%
Portfolio turnover rate   11%      12%   19%   6%        8%

 

Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):

 

Ratio of expenses to average net assets   0.93%   0.89%   0.84%   0.87%   0.90%
Ratio of net investment income to average net assets   2.23%   2.05%   1.71%   1.92%   2.29%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

161  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

FINANCIAL HIGHLIGHTS (continued)

 

 

For a share outstanding throughout each period

 

    Class C
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $9.73   $9.94   $10.60   $10.49   $10.35
Income (loss) from investment operations:                    
Net investment income(1)   0.14   0.12   0.10   0.12   0.16
Net gain (loss) on securities
(both realized and unrealized)		   (0.04)   (0.20)   (0.66)   0.11   0.14
Total from investment operations   0.10   (0.08)   (0.56)   0.23   0.30
Less distributions (note 9):                    
Dividends from net investment income   (0.14)   (0.13)   (0.10)   (0.12)   (0.16)
Distributions from capital gains   —   —   —   ––   —
Total distributions   (0.14)   (0.13)   (0.10)   (0.12)   (0.16)
Net asset value, end of period   $9.69   $9.73   $9.94   $10.60   $10.49
Total return (not reflecting CDSC)   1.05%   (0.78)%   (5.35)%   2.21%   2.90%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $6   $10   $16   $27   $31
Ratio of expenses to average net assets   1.70%   1.67%   1.62%   1.65%   1.68%
Ratio of net investment income to average net assets   1.45%   1.26%   0.93%   1.14%   1.52%
Portfolio turnover rate   11%      12%   19%   6%        8%

 

Expense and net investment income ratios without the effect of the contractual expense cap and/or fee waiver were (note 3)

 

Ratio of expenses to average net assets   1.72%   1.69%   1.64%   1.67%   1.70%
Ratio of net investment income to average net assets   1.43%   1.24%   0.90%   1.12%   1.50%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

162  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

FINANCIAL HIGHLIGHTS (continued)

 

 

For a share outstanding throughout each period

 

    Class F
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $9.79   $10.00   $10.65   $10.54   $10.39
Income (loss) from investment operations:                    
Net investment income(1)   0.24   0.22   0.21   0.23   0.26
Net gain (loss) on securities
(both realized and unrealized)		   (0.03)   (0.20)   (0.65)   0.11   0.16
Total from investment operations   0.21   0.02   (0.44)   0.34   0.42
Less distributions (note 9):                    
Dividends from net investment income   (0.24)   (0.23)   (0.21)   (0.23)   (0.27)
Distributions from capital gains   —   —   —   —   —
Total distributions   (0.24)   (0.23)   (0.21)   (0.23)   (0.27)
Net asset value, end of period   $9.76   $9.79   $10.00   $10.65   $10.54
Total return (not reflecting sales charge)   2.21%   0.25%   (4.24)%   3.26%   4.05%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $4   $7   $11   $5.3   $2.0
Ratio of expenses to average net assets   0.67%   0.64%   0.59%   0.61%   0.65%
Ratio of net investment income to average net assets   2.49%   2.30%   1.96%   2.15%   2.51%
Portfolio turnover rate   11%   12%   19%        6%        8%

 

Expense and net investment income ratios without the effect of the contractual expense cap and/or fee waiver were (note 3):

 

Ratio of expenses to average net assets   0.69%   0.66%   0.61%   0.63%   0.67%
Ratio of net investment income to average net assets   2.47%   2.28%   1.93%   2.12%   2.49%

 

 

                                                           

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

163  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

FINANCIAL HIGHLIGHTS (continued)

 

 

For a share outstanding throughout each period

 

    Class Y
    Year Ended March 31,
    2024   2023   2022   2021   2020
Net asset value, beginning of period   $9.75   $9.97   $10.63   $10.52   $10.39
Income (loss) from investment operations:                    
Net investment income(1)   0.24   0.22   0.20   0.23   0.26
Net gain (loss) on securities
(both realized and unrealized)		   (0.04)   (0.21)   (0.66)   0.11   0.14
Total from investment operations   0.20   0.01   (0.46)   0.34   0.40
Less distributions (note 9):                    
Dividends from net investment income   (0.24)   (0.23)   (0.20)   (0.23)   (0.27)
Distributions from capital gains   —   —   —   ––   —
Total distributions   (0.24)   (0.23)   (0.20)   (0.23)   (0.27)
Net asset value, end of period   $9.71   $9.75   $9.97   $10.63   $10.52
Total return (not reflecting sales charge)   2.07%   0.12%   (4.38)%   3.23%   3.82%
Ratios/supplemental data                    
Net assets, end of period (in millions)   $127   $137   $186   $195   $154
Ratio of expenses to average net assets   0.71%   0.67%   0.62%   0.65%   0.68%
Ratio of net investment income to average net assets   2.46%   2.27%   1.93%   2.14%   2.51%
Portfolio turnover rate   11%      12%   19%   6%       8%

 

Expense and net investment income ratios without the effect of the contractual expense cap and/or fee waiver were (note 3):

 

Ratio of expenses to average net assets   0.73%   0.69%   0.64%   0.67%   0.70%
Ratio of net investment income to average net assets   2.44%   2.25%   1.91%   2.11%   2.49%

 

 

                               

 

(1)   Per share amounts have been calculated using the daily average shares method.

 

 

 

See accompanying notes to financial statements.

 

164  |  Aquila Municipal Trust

 

 
 
 

 

Additional Information (unaudited):

Statement Regarding Liquidity Risk Management Program

Rule 22e-4 under the Investment Company Act of 1940, as amended, requires open-end management investment companies to adopt and implement written liquidity risk management programs that are reasonably designed to assess and manage liquidity risk. Liquidity risk is defined in the rule as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund. In accordance with Rule 22e-4, Aquila Municipal Trust (“AMT”) has adopted a Liquidity Risk Management (“LRM”) program (the “program”). AMT’s Board of Trustees (the “Board”) has designated an LRM Committee consisting of employees of Aquila Investment Management LLC as the administrator of the program (the “Committee”).

The Board met on June 2, 2023 to review the program. At the meeting, the Committee provided the Board with a report that addressed the operation of the program and assessed its adequacy and effectiveness of implementation, and any material changes to the program (the “Report”). The Report covered the period from May 1, 2022 through April 30, 2023 (the “Reporting Period”).

During the Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure taking into account less liquid and illiquid assets.

The Committee reviewed each Fund’s short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. In classifying and reviewing each Fund’s investments, the Committee considered whether trading varying portions of a position in a particular portfolio investment or asset class in sizes the Fund would reasonably anticipate trading, would be reasonably expected to significantly affect liquidity. The Committee considered the following information when determining the sizes in which each Fund would reasonably anticipate trading: historical net redemption activity, the Fund’s concentration in an issuer, shareholder concentration, Fund performance, Fund size, and distribution channels.

The Committee considered each Fund’s holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered the terms of the credit facility applicable to the Funds, the financial health of the institution providing the facility and the fact that the credit facility is shared among multiple Funds. The Committee also considered other types of borrowing available to the Funds, such as the ability to use interfund lending arrangements.

The Committee also performed an analysis to determine whether a Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”), and determined that the requirement to maintain an HLIM was inapplicable to the Funds because each Fund primarily holds highly liquid investments.

There were no material changes to the program during the Reporting Period. The Report provided to the Board stated that the Committee concluded that the program is reasonably designed and operated effectively throughout the Review Period.

 

 

165 |  Aquila Municipal Trust

 

 
 
 

 

Additional Information (unaudited)

 

Trustees(1)
and Officers		                
                 
Name, Address
and Year of Birth(2)		   Positions
Held with
Trust and
Length of
Service(3)		   Principal Occupation(s)
During Past 5 Years		   Number of
Portfolios
in Fund
Complex
Overseen
by Trustee		   Other
Directorships
Held by Trustee
During Past
5 Years
                 
Interested
Trustee(4)		                
                 
Diana P. Herrmann
New York, NY
(1958)		   Vice Chair of Aquila Municipal Trust since 2014, Trustee since 1994 and President since 1998   Chair (since 2016 and previously Vice Chair since 2004) and Chief Executive Officer (since 2004) of Aquila Management Corporation, Founder and Sponsor of the Aquila Group of Funds(5) and parent of Aquila Investment Management LLC, Manager, President since 1997, Chief Operating Officer, 1997-2008, a Director since 1984, Secretary, 1986-2016, and previously its Executive Vice President, Senior Vice President or Vice President, 1986-1997; Chief Executive Officer (since 2004) and Chair (since 2016 and previously Vice Chair since 2004), President and Manager  since 2003, and Chief Operating Officer (2003-2008), of the Manager; Chair, Vice Chair, President, Executive Vice President and/or Senior Vice President of funds in the Aquila Group of Funds since 1986; Manager of the Distributor since 1997; Governor, Investment Company Institute (the U.S. mutual fund industry trade organization dedicated to protecting shareholder interests and educating the public about investing) for various periods since 2004, and Chair of its Small Funds Committee, 2004-2009; active in charitable and volunteer organizations.   9  

Director of ICI Mutual Insurance Company, a Risk Retention Group, for various periods since 2006; formerly Vice Chair and Trustee of Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 2004-2012

Vice Chair Board of Trustees (2003-2020), President (1998-2020) and Trustee (1994-2020) of The Cascades Trust (Predecessor Fund of Aquila Tax-Free Trust of Oregon)

                 
Non-Interested
Trustees		                
                 
Patricia L. Moss
Bend, OR
(1953)		   Chair of the Board of Aquila Municipal Trust effective January 1, 2023; Trustee of Aquila Municipal Trust since 2020   Vice Chairman, Cascade Bancorp and Bank of the Cascades 2012-2017, President and Chief Executive Officer 1997-2012; member, Oregon Investment Council 2018-2021; active in community and educational organizations; Trustee of various funds in the Aquila Group of Funds 2002-2005 and since 2015   8  

First Interstate BancSystem, Inc.; MDU Resources Group, Inc.

Trustee of The Cascades Trust (Predecessor Fund of Aquila Tax-Free Trust of Oregon) 2015-2020, 2002-2005; Trustee Emerita 2005-2015

 

 

166 |  Aquila Municipal Trust

 

 
 
 

 

 

Name, Address
and Year of Birth(2)		   Positions
Held with
Trust and
Length of
Service(3)		   Principal Occupation(s)
During Past 5 Years		   Number of
Portfolios
in Fund
Complex
Overseen
by Trustee		   Other
Directorships
Held by Trustee
During Past
5 Years
                 
Non-Interested
Trustees (cont’d)		                
                 
Ernest Calderón
Phoenix, AZ
(1957)		   Trustee of Aquila Municipal Trust since 2004   Attorney (currently, Partner, Calderón Law Offices, PLC); Regent emeritus and President emeritus Arizona Board of Regents; Adjunct Professor, Northern Arizona University; Doctor of Education in Organizational Change and Educational Leadership, University of Southern California; served seven  Arizona governors by appointment; Past President, Grand Canyon Council of Boy Scouts of America; Past President, State Bar of Arizona, 2003-2004; member, American Law Institute; Trustee of various funds in the Aquila Group of Funds since 2004.   6   None
                 
Gary C. Cornia
St. George, UT
(1948)		   Trustee of Aquila Municipal Trust since 2009   Emeritus Dean and Professor, Marriott School of Management, Brigham Young University 2014-present; Professor, Marriott School of Management, Brigham Young University, 1980-2014; Chair, Utah State Securities Commission, 2019-2021, Commissioner, 2013–2021; Dean, Marriott School of Management, 2008-2013; Past President, National Tax Association; Fellow, Lincoln Institute of Land Policy, 2002-present; Trustee of various funds in the Aquila Group of Funds since 1993.   8  

International Center for Land Policies and Training, Taipei, Taiwan, Director and Chair of Executive Committee

Trustee of The Cascades Trust (Predecessor Fund of Aquila Tax-Free Trust of Oregon) 2002-2020

                 
Grady Gammage, Jr.
Phoenix, AZ
(1951)		   Trustee of Aquila Municipal Trust since 2001   Founding partner, Gammage & Burnham, PLC, a law firm, Phoenix, Arizona, since 1983; director, Central Arizona Water Conservation District, 1992-2004; Senior Fellow, Morrison Institute for Public Policy and Kyl Institute for Water Policy; Adjunct Professor, Sandra Day O’Connor College of Law; W. P. Carey School of Business; active with Urban Land Institute; Author, “The Future of the Suburban City” Island Press, 2016; Trustee of various funds in the Aquila Group of Funds since 2001.   8   None

 

 

167 |  Aquila Municipal Trust

 

 
 
 

 

 

Name, Address
and Year of Birth(2)		   Positions
Held with
Trust and
Length of
Service(3)		   Principal Occupation(s)
During Past 5 Years		   Number of
Portfolios
in Fund
Complex
Overseen
by Trustee		   Other
Directorships
Held by Trustee
During Past
5 Years
                 
Non-Interested
Trustees (cont’d)		                
                 
Glenn P. O’Flaherty
Granby, CO
(1958)		   Trustee of Aquila Municipal Trust since 2013   Chief Financial Officer and Chief Operating Officer of Lizard Investors, LLC, 2008; Co-Founder, Chief Financial Officer and Chief Compliance Officer of Three Peaks Capital Management, LLC, 2003-2005; Vice President – Investment Accounting, Global Trading and Trade Operations, Janus Capital Corporation, and Chief Financial Officer and Treasurer, Janus Funds, 1991-2002; Trustee of various funds in the Aquila Group of Funds since 2006.   9   Granby Ranch Metropolitan District (quasi-municipal corporation); formerly Trustee of Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 2009-2012
                 
Heather R. Overby
Prospect, KY
(1971)		   Aquila Municipal Trust: Trustee since September 2022   Vice President, Finance & Accounting/Chief Financial Officer, Kentucky Municipal Energy Agency (wholesale electricity sale – governmental), June 2018 – Present; Chairman, Kentucky School Facilities Construction Commission (state commission), December 2018 – Present; Interim Chief Financial Officer, Kentucky Municipal Energy Agency (wholesale electricity sale – governmental), February 2017 – May 2018; Chief Financial Officer, Kentucky Municipal Power Agency, (wholesale electricity sale – governmental), November 2009 – May 2018.   6   None
                 
Laureen L. White
North Kingstown, RI
(1959)		   Trustee of Aquila Municipal Trust since 2013   President, Greater Providence Chamber of Commerce, since 2005, Executive Vice President 2004-2005 and Senior Vice President, 1989-2002; Executive Counselor to the Governor of Rhode Island for Policy and Communications, 2003-2004; Trustee of various funds in the Aquila Group of Funds since 2005.   6   None

 

 

(1)The Trust’s Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request by calling 800-437-1020 (toll-free) or by visiting www.aquilafunds.com or the EDGAR Database at the SEC’s internet site at www.sec.gov.
(2)The mailing address of each Trustee is c/o Aquila Municipal Trust, 120 West 45th Street, Suite 3600, New York, NY 10036.
(3)Each Trustee holds office until his or her successor is elected or his or her earlier retirement or removal.
(4)Ms. Herrmann is an “interested person” of the Trust, as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”), as an officer of the Trust, as a director, officer and shareholder of the Manager’s corporate parent, as an officer and Manager of the Manager, and as a Manager of the Distributor.
(5)The “Aquila Group of Funds” includes: Aquila Tax-Free Trust of Arizona, Aquila Tax-Free Fund of Colorado, Hawaiian Tax-Free Trust, Aquila Churchill Tax-Free Fund of Kentucky, Aquila Tax-Free Trust of Oregon, Aquila Narragansett Tax-Free Income Fund (Rhode Island) and Aquila Tax-Free Fund For Utah, each of which is a tax-free municipal bond fund and are called the “Aquila Municipal Bond Funds”; Aquila Opportunity Growth Fund, which is an equity fund; and Aquila High Income Fund, which is a high-income corporate bond fund.

 

168 |  Aquila Municipal Trust

 

 
 
 

 

 

Name, Address
and Year of Birth(1)		   Positions
Held with
Trust and
Length of Service(2)		   Principal Occupation(s) During Past 5 Years
         
Officers(3)        
         
Stephen J. Caridi
New York, NY
(1961)		   Senior Vice President of Aquila Municipal Trust since 2013   Regional Sales Manager (since 2009) and registered representative (since 1986) of the Distributor; Vice President of the Distributor  1995-2009; Vice President, Hawaiian Tax-Free Trust since 1998; Senior Vice President, Aquila Municipal Trust (which includes Aquila Narragansett Tax-Free Income Fund) since 2013; Vice President, Aquila Funds Trust since 2013; Senior Vice President, Aquila Narragansett Tax-Free Income Fund 1998-2013, Vice President 1996-1997; Senior Vice President, Aquila Tax-Free Fund of Colorado 2004-2009; Vice President, Aquila Opportunity Growth Fund 2006-2013.
         
Paul G. O’Brien
New York, NY
(1959)		   Senior Vice President of Aquila Municipal Trust since 2010   President, Aquila Distributors LLC since 2019, Co-President 2010-2019, Managing Director, 2009-2010; Senior Vice President of all funds in the Aquila Group of Funds since 2010; held various positions to Senior Vice President and Chief Administrative Officer of Evergreen Investments Services, Inc., 1997-2008; Mergers and Acquisitions Coordinator for Wachovia Corporation, 1994-1997.
         
Robert C. Arnold
Peoria, AZ
(1973)		   Vice President of Aquila Municipal Trust since 2019   Vice President, Aquila Municipal Trust (which includes Aquila Tax-Free Trust of Arizona) since 2019; Regional Sales Manager, Aquila Distributors LLC (since 2019); Financial Advisor, Prudential Advisors, 2017 – 2019
         
Royden P. Durham Louisville, KY
(1951)		   Vice President of Aquila Municipal Trust since 2013; Lead Portfolio Manager of Aquila Churchill Tax-Free Fund of Kentucky (since 2011); Portfolio Manager of Aquila Tax-Free Trust of Arizona (since 2017), Aquila Tax-Free Fund of Colorado (since 2023) and and Aquila Tax-Free Fund For Utah (since 2017)   Portfolio Manager of Aquila Churchill Tax-Free Fund of Kentucky (since 2011) and Aquila Tax-Free Fund of Colorado (since 2023); Portfolio Manager of Aquila Tax-Free Trust of Arizona and Aquila Tax-Free Fund For Utah (since 2011); Vice President, Aquila Municipal Trust (since 2013) and Aquila Churchill Tax-Free Fund of Kentucky 2011-2013; President, advEnergy solutions LLC, 2007-2011; Vice President and Trust Advisor, JP Morgan Chase, 2005-2006; Vice President and Trust Officer, Regions Morgan Keegan Trust, 2003-2005; Vice President Fixed Income and Equity Portfolios, The Sachs Company / Louisville Trust Company, 1986-2003.
         
Vasilios Gerasopoulos
Lakewood, CO
(1973)		   Assistant Vice President of Aquila Municipal Trust and Co-Portfolio Manager of Aquila Tax-Free Fund of Colorado since March 2023   Assistant Vice President of Aquila Municipal Trust and Co-Portfolio Manager of Aquila Tax-Free Fund of Colorado and Credit Analyst of Aquila Tax-Free Trust of Oregon since March 2023; Credit Analyst at Davidson Fixed Income Management, Inc., doing business as Kirkpatrick Pettis Capital Management, from 2015 to 2023; Senior Financial Analyst, Bond and Debt, for Jefferson County, Colorado from December 2012 to 2015.

 

 

169 |  Aquila Municipal Trust

 

 
 
 

 

 

Name, Address
and Year of Birth(1)		   Positions
Held with
Trust and
Length of Service(2)		   Principal Occupation(s) During Past 5 Years
         
Officers (cont’d) (3)        
         
Timothy Iltz
Happy Valley, OR
(1975)		   Vice President of Aquila Municipal Trust since March 2023; Portfolio Manager of Aquila Tax-Free Fund of Colorado (since December 2022) and Aquila Tax-Free Trust of Oregon (since 2018)   Vice President of Aquila Municipal Trust since March 2023, Portfolio Manager of Aquila Tax-Free Fund of Colorado since December 2022, and Aquila Tax-Free Trust of Oregon since 2018; Vice President and Municipal Bond Credit Analyst at Davidson Fixed Income Management, Inc., doing business as Kirkpatrick Pettis Capital Management, from 2011 to 2018.  Vice President and Portfolio Manager at Davidson Fixed Income Management, Inc., doing business as Kirkpatrick Pettis Capital Management, from 2018 to 2023.
         
Troy Miller
Louisville, KY
(1971)		   Vice President of Aquila Municipal Trust since March 2022   Vice President, Aquila Municipal Trust (which includes Aquila Churchill Tax-Free Fund of Kentucky) since March 2022; Regional Sales Manager of the Distributor since January 2022; Financial Consultant, Fidelity Investments (wealth management), May 2020 – February 2021; Vice President, Manager-Life Planning Strategies, June 2017 – October 2019, and Vice President, Manager-Retirement Products, April 2010 – June 2017, Baird Trust Company (formerly known as Hilliard Lyons Trust Company) (wealth management).
         
Christine L. Neimeth
Portland, OR
(1964)		   Vice President of Aquila Municipal Trust since 2020   Vice President of Aquila Funds Trust since 2013 and Aquila Municipal Trust (which includes Aquila Tax-Free Trust of Oregon) since 2020; formerly Vice President, Aquila Opportunity Growth Fund 1999 – 2013 and Aquila Tax-Free Trust of Oregon 1998 – 2020; Regional Sales Manager and/or registered representative of the Distributor since 1999.
         
Anthony A. Tanner
Phoenix, AZ
(1960)		   Vice President of Aquila Municipal Trust, Lead Portfolio Manager of Aquila Tax-Free Trust of Arizona, and Portfolio Manager of Aquila Churchill Tax-Free Fund of Kentucky (since 2018), Aquila Tax-Free Trust of Oregon (since 2023) and Aquila Tax-Free Fund For Utah since 2018   Vice President of Aquila Municipal Trust (since 2018); Portfolio Manager of Aquila Tax-Free Trust of Arizona, Aquila Churchill Tax-Free Fund of Kentucky and Aquila Tax-Free Fund For Utah (since 2018) and Aquila Tax-Free Trust of Oregon (since 2023); Senior Portfolio Manager at BNY Mellon Wealth Management from 2016 to 2018; a Senior Client Advisor at BMO Private Bank from 2014 to 2015; and Senior Fixed Income Manager at Wells Fargo Private Bank from 2010 to 2014.
           

 

 

170 |  Aquila Municipal Trust

 

 
 
 

 

 

Name, Address
and Year of Birth(1)		   Positions
Held with
Trust and
Length of Service(2)		   Principal Occupation(s) During Past 5 Years
         
Officers (cont’d) (3)        
         
M. Kayleen Willis
South Jordan, UT
(1963)		   Vice President of Aquila Municipal Trust since 2013     Vice President, Aquila Municipal Trust (which includes Aquila Tax-Free Fund For Utah) since 2013; Vice President, Aquila Tax-Free Fund For Utah 2003-2013, Assistant Vice President, 2002-2003; Vice President, Aquila Opportunity Growth Fund, 2004-2013 and Aquila Funds Trust since 2013.
         
Randall S. Fillmore
New York, NY
(1960)		   Chief Compliance Officer of Aquila Municipal Trust since 2012   Chief Compliance Officer of all funds in the Aquila Group of Funds, the Manager and the Distributor since 2012; Managing Director, Fillmore & Associates, 2009-2012; Fund and Adviser Chief Compliance Officer (2002-2009), Senior Vice President - Broker Dealer Compliance (2004-2009), Schwab Funds Anti Money Laundering Officer and Identity Theft Prevention Officer (2004-2009), Vice President - Internal Audit (2000-2002), Charles Schwab Corporation; National Director, Information Systems Risk Management - Consulting Services (1999-2000), National Director, Investment Management Audit and Business Advisory Services (1992-1999), Senior Manager, Manager, Senior and Staff Roles (1983-1992), PricewaterhouseCoopers LLP.
         
Joseph P. DiMaggio
New York, NY
(1956)		   Chief Financial Officer of Aquila Municipal Trust since 2003 and Treasurer since 2000   Chief Financial Officer of all funds in the Aquila Group of Funds since 2003 and Treasurer since 2000.
         
Anita Albano, CPA
New York, NY
(1973)		   Secretary of Aquila Municipal Trust since 2020, Assistant Secretary 2018-2019   Secretary of all funds in the Aquila Group of Funds since 2020, Assistant Secretary 2018 – 2019; Senior Vice President and Chief Financial Officer of Aquila Investment Management LLC and Aquila Management Corporation since 2018; Treasurer of Aquila Investment Management LLC and Aquila Management Corporation since 2005.
         
Yolonda S. Reynolds
New York, NY
(1960)		   Assistant Treasurer of Aquila Municipal Trust since 2010   Assistant Treasurer of all funds in the Aquila Group of Funds since 2010; Director of Fund Accounting for the Aquila Group of Funds since 2007.
         
Lori A. Vindigni
New York, NY
(1966)		   Assistant Treasurer of Aquila Municipal since 2000   Assistant Treasurer of all funds in the Aquila Group of Funds since 2000; Assistant Vice President of the Manager or its predecessor and current parent since 1998; Fund Accountant for the Aquila Group of Funds, 1995-1998.

 

 

(1)The mailing address of each officer is c/o Aquila Municipal Trust, 120 West 45th Street, Suite 3600, New York, NY 10036.
(2)The term of office of each officer is one year.
(3)The Trust’s Statement of Additional Information includes additional information about the officers and is available, without charge, upon request by calling 800-437-1020 (toll-free) or by visiting www.aquilafunds.com or the EDGAR Database at the SEC’s internet site at www.sec.gov.

 

171 |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

Your Fund’s Expenses (unaudited)

As a Fund shareholder, 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 “12b-1” and/or service 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 assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The 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 that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.

Hypothetical Example for Comparison with Other Funds

Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

  Actual   Hypothetical
  (actual return after expenses)   (5% annual return before expenses)
Share
Class		 Beginning Account
Value
10/01/23

Ending(1)

Account
Value
3/31/24

 Expenses(2)
Paid During Period
10/01/23 –
3/31/24		   Ending
Account
Value
3/31/24		 Expenses(2)
Paid During
Period
10/01/23 –
3/31/24		 Net
Annualized
Expense
Ratio
A $1,000 $1,051.80 $3.90   $1,021.20 $3.84 0.76%
C $1,000 $1,047.40 $8.24   $1,016.95 $8.12 1.61%
Y $1,000 $1,052.60 $3.13   $1,021.95 $3.08 0.61%

 

(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 or the applicable CDSC with respect to Class C shares.  Total return is not annualized and as such, it may not be representative of the total return for the year.
   
(2) Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

 

172  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND OF COLORADO

Your Fund’s Expenses (unaudited)

As a Fund shareholder, 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 “12b-1” and/or service 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 assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The 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 that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.

Hypothetical Example for Comparison with Other Funds

Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

  Actual   Hypothetical
  (actual return after expenses)   (5% annual return before expenses)
Share
Class		 Beginning Account
Value
10/01/23

Ending(1)

Account
Value
3/31/24

 Expenses(2)
Paid During Period
10/01/23 –
3/31/24		   Ending
Account
Value
3/31/24		 Expenses(2)
Paid During
Period
10/01/23 –
3/31/24		 Net
Annualized
Expense
Ratio
A $1,000 $1,046.50 $4.09   $1,021.00 $4.04 0.80%
C $1,000 $1,041.70 $8.93   $1,016.25 $8.82 1.75%
Y $1,000 $1,046.80 $3.84   $1,021.25 $3.79 0.75%

 

(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 or the applicable CDSC with respect to Class C shares. Total return is not annualized and as such, it may not be representative of the total return for the year.
   
(2) Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

 

173  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

Your Fund’s Expenses (unaudited)

As a Fund shareholder, 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 “12b-1” and/or service 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 assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The 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 that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.

Hypothetical Example for Comparison with Other Funds

Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

  Actual   Hypothetical
  (actual return after expenses)   (5% annual return before expenses)
Share
Class		 Beginning Account
Value
10/01/23

Ending(1)

Account
Value
3/31/24

 Expenses(2)
Paid During Period
10/01/23 –
3/31/24		   Ending
Account
Value
3/31/24		 Expenses(2)
Paid During
Period
10/01/23 –
3/31/24		 Net
Annualized
Expense
Ratio
A $1,000 $1,056.60 $4.22   $1,020.90 $4.14 0.82%
C $1,000 $1,052.00 $8.57   $1,016.65 $8.42 1.67%
F $1,000 $1,057.50 $3.34   $1,021.75 $3.29 0.65%
I $1,000 $1,055.70 $5.04   $1,020.10 $4.95 0.98%
Y $1,000 $1,058.40 $3.45   $1,021.65 $3.39 0.67%

 

(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 or the applicable CDSC with respect to Class C shares. Total return is not annualized and as such, it may not be representative of the total return for the year.
   
(2) Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

 

174  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF OREGON

Your Fund’s Expenses (unaudited)

As a Fund shareholder, 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 “12b-1” and/or service 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 assumes a $1,000 investment held for the six months indicated.

Actual Expenses

The 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 that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.

Hypothetical Example for Comparison with Other Funds

Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

  Actual   Hypothetical
  (actual return after expenses)   (5% annual return before expenses)
Share
Class		 Beginning Account
Value
10/01/23

Ending(1)

Account
Value
3/31/24

 Expenses(2)
Paid During Period
10/01/23 –
3/31/24		   Ending
Account
Value
3/31/24		 Expenses(2)
Paid During
Period
10/01/23 –
3/31/24		 Net
Annualized
Expense
Ratio
A $1,000 $1,043.90 $3.73   $1,021.35 $3.69 0.73%
C $1,000 $1,039.60 $8.06   $1,017.10 $7.97 1.58%
F $1,000 $1,045.00 $2.81   $1,022.25 $2.78 0.55%
Y $1,000 $1,044.80 $2.96   $1,022.10 $2.93 0.58%

 

(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 or the applicable CDSC with respect to Class C shares.  Total return is not annualized and as such, it may not be representative of the total return for the year.
   
(2) Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

 

175  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA NARRAGANSETT TAX-FREE INCOME FUND

Your Fund’s Expenses (unaudited)

As a Fund shareholder, 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 “12b-1” and/or service 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 assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The 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 that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.

Hypothetical Example for Comparison with Other Funds

Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

  Actual   Hypothetical
  (actual return after expenses)   (5% annual return before expenses)
Share
Class		 Beginning Account
Value
10/01/23

Ending(1)

Account
Value
3/31/24

 Expenses(2)
Paid During Period
10/01/23 –
3/31/24		   Ending
Account
Value
3/31/24		 Expenses(2)
Paid During
Period
10/01/23 –
3/31/24		 Net
Annualized
Expense
Ratio
A $1,000 $1,061.00 $4.38   $1,020.75 $4.29 0.85%
C $1,000 $1,056.50 $8.74   $1,016.50 $8.57 1.70%
F $1,000 $1,061.00 $3.45   $1,021.65 $3.39 0.67%
I $1,000 $1,059.20 $5.10   $1,020.05 $5.00 0.99%
Y $1,000 $1,060.80 $3.61   $1,021.50 $3.54 0.70%

 

(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 or the applicable CDSC with respect to Class C shares. Total return is not annualized and as such, it may not be representative of the total return for the year.
   
(2) Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

 

176  |  Aquila Municipal Trust

 

 
 
 

 

 

AQUILA TAX-FREE FUND FOR UTAH

Your Fund’s Expenses (unaudited)

As a Fund shareholder, 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 “12b-1” and/or service 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 assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The 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 that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.

Hypothetical Example for Comparison with Other Funds

Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

  Actual   Hypothetical
  (actual return after expenses)   (5% annual return before expenses)
Share
Class		 Beginning Account
Value
10/01/23

Ending(1)

Account
Value
3/31/24

 Expenses(2)
Paid During Period
10/01/23 –
3/31/24		   Ending
Account
Value
3/31/24		 Expenses(2)
Paid During
Period
10/01/23 –
3/31/24		 Net
Annualized
Expense
Ratio
A $1,000 $1,054.10 $4.72   $1,020.40 $4.65 0.92%
C $1,000 $1,051.00 $8.82   $1,016.40 $8.67 1.72%
F $1,000 $1,058.40 $3.55   $1,021.55 $3.49 0.69%
Y $1,000 $1,056.20 $3.70   $1,021.40 $3.64 0.72%

 

(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 or the applicable CDSC with respect to Class C shares. Total return is not annualized and as such, it may not be representative of the total return for the year.
   
(2) Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

 

177  |  Aquila Municipal Trust

 

 
 
 

 

 

Information Available (unaudited)

Annual and Semi-Annual Reports and Complete Schedules of Investments

Each Fund’s Annual and Semi-Annual Reports are filed with the SEC twice a year. Each Report contains a complete Schedule of Portfolio Holdings, along with full financial statements and other important financial statement disclosures. Additionally, each Fund files a complete Schedule of Investments with the SEC for the first and third quarters of each fiscal year as an exhibit to its Reports on Form N-PORT. Each Fund’s Annual and Semi-Annual Reports and N-PORT reports are available free of charge on the SEC website at www.sec.gov. You may also review or, for a fee, copy the forms at the SEC’s Public Reference Room in Washington, D.C. or by calling 1-800-SEC-0330.

 

In addition, each Fund’s Annual and Semi-Annual Reports and complete Portfolio Holdings Schedules for each fiscal quarter end are also available, free of charge, on the Funds’ website, www.aquilafunds.com or by calling us at 1-800-437-1000.

 

Portfolio Holdings Reports

 

In accordance with each Fund’s Portfolio Holdings Disclosure Policy, the Manager also prepares a Portfolio Holdings Report as of each quarter end, which is typically posted to each Fund’s individual page at www.aquilafunds.com by the 15th day after the end of each calendar quarter. Such information will remain accessible until the next Portfolio Holdings Report is made publicly available by being posted to www.aquilafunds.com. The quarterly Portfolio Holdings Report may be accessed, free of charge, by visiting www.aquilafunds.com or calling us at 1-800-437-1000.

 

 

 

Proxy Voting Record (unaudited)

During the 12 month period ended June 30, 2023, there were no proxies related to any portfolio instruments held by the Funds. As such, the Funds did not vote any proxies. Applicable regulations require us to inform you that each Fund’s proxy voting information is available on the SEC website at www.sec.gov.

 

 

 

Federal Tax Status of Distributions (unaudited)

This information is presented in order to comply with a requirement of the Internal Revenue Code. No current action on the part of shareholders is required.

 

For the fiscal year ended March 31, 2024, the following percentage of the dividends and distributions paid by the Funds were taxable as follows:

 

    Dividends
Paid		   Exempt Interest
Dividends (%)
Aquila Tax-Free Trust of Arizona   $5,512,775   91.9%
Aquila Tax-Free Fund of Colorado   $3,539,598   94.6%
Aquila Churchill Tax-Free Fund of Kentucky   $3,876,694   98.1%
Aquila Tax-Free Trust of Oregon   $9,183,930   96.9%
Aquila Narragansett Tax-Free Income Fund   $4,186,195   98.0%
Aquila Tax-Free Fund For Utah   $7,068,107   97.1%

 

Prior to February 15, 2025, shareholders will be mailed the appropriate tax form(s) which contained information on the status of distributions paid for the 2024 calendar year.

 

 

 

178  |  Aquila Municipal Trust

 

 
 
 

 

 

Founders
Lacy B. Herrmann (1929-2012)
Aquila Management Corporation, Sponsor

Manager
AQUILA INVESTMENT MANAGEMENT LLC
120 West 45th Street, Suite 3600
New York, New York 10036

Board of Trustees
Patricia L. Moss, Chair
Diana P. Herrmann, Vice Chair
Ernest Calderón
Gary C. Cornia
Grady Gammage, Jr.
Glenn P. O’Flaherty
Heather R. Overby
Laureen L. White

Officers
Diana P. Herrmann, President
Paul G. O’Brien, Senior Vice President
Royden P. Durham, Vice President and Portfolio Manager
Timothy Iltz, Vice President and Portfolio Manager
Anthony A. Tanner, Vice President and Portfolio Manager
Vasilios Gerasopoulos, Assistant Vice President and Portfolio Manager
Stephen J. Caridi, Senior Vice President
Robert C. Arnold, Vice President
Christian Alexander Bremer, Vice President
Troy Miller, Vice President
Christine L. Neimeth, Vice President
M. Kayleen Willis, Vice President
Randall S. Fillmore, Chief Compliance Officer
Joseph P. DiMaggio, Chief Financial Officer and Treasurer
Anita Albano, Secretary

Distributor
AQUILA DISTRIBUTORS LLC
120 West 45th Street, Suite 3600
New York, New York 10036

Transfer and Shareholder Servicing Agent
BNY MELLON INVESTMENT SERVICING (US) INC.
118 Flanders Road
Westborough, Massachusetts 01581

Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, New York 10286

Independent Registered Public Accounting Firm
TAIT, WELLER & BAKER LLP
Two Liberty Place
50 South 16th Street, Suite 2900
Philadelphia, Pennsylvania 19102

 

Further information is contained in the Prospectus,
which must precede or accompany this report.

 

AQL-AMTAR-0524

 

 

 

 

 
 
 

ITEM 2.     CODE OF ETHICS.

 

(a) As of March 31, 2024 the Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions as defined in the Aquila Group of Funds Code of Ethics for Principal Executive and Senior Financial Officers under Section 406 of the Sarbanes-Oxley Act of 2002, as amended;
   
(c) N/A
   
(d) N/A
   
(f)(2) The text of the Registrant's Code of Ethics that applies to the Registrant's principal executive officer(s) and principal financial officer(s) and persons performing similar functions has been posted on its Internet website which can be found at the Registrant's Internet address at aquilafunds.com.

 

ITEM 3.     AUDIT COMMITTEE FINANCIAL EXPERT.

 

(a)(1)(i) The Registrant’s Board of Trustees has determined that Ms. Patricia Moss and Mr. Glenn O’Flaherty, members of the Registrant’s Audit Committee, are audit committee financial experts. Ms. Moss and Mr. O’Flaherty are both “independent” as such term is defined in Form N-CSR.

 

ITEM 4.     PRINCIPAL ACCOUNTANT FEES AND SERVICES.

 

(a) Audit Fees - The aggregate fees billed for professional services rendered by the principal accountant for the audit of each Series of the Registrant's annual financial statements were as follows:

 

  2023   2024
Aquila Churchill Tax-Free Fund of Kentucky $19,900   $21,400
Aquila Narragansett Tax-Free Income Fund $21,400   $22,800
Aquila Tax-Free Fund For Utah $25,600   $26,700
Aquila Tax-Free Fund of Colorado $20,900   $20,700
Aquila Tax-Free Trust of Arizona $21,300   $22,700
Aquila Tax-Free Trust of Oregon $29,700   $32,300

 

(b) Audit Related Fees - There were no amounts billed for audit-related fees over the past two years.

 

(c) Tax Fees – Each Series of the Registrant was billed by the principal accountant for return preparation and tax compliance as follows:

 

  2023   2024
Aquila Churchill Tax-Free Fund of Kentucky $3,500   $3,500
Aquila Narragansett Tax-Free Income Fund $3,500   $3,500
Aquila Tax-Free Fund For Utah $3,500   $3,500
Aquila Tax-Free Fund of Colorado $3,500   $3,500
Aquila Tax-Free Trust of Arizona $3,500   $3,500

 

(d) All Other Fees - There were no additional fees paid for audit and non-audit services other than those disclosed in (a) thorough (c) above.
   
(e)(1) Currently, the audit committee of the Registrant pre-approves audit services and fees on an engagement-by-engagement basis
   
(e)(2) None of the services described in (b) through (d) above were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, all were pre-approved on an engagement-by-engagement basis.
   
(f) Not applicable.
   
(g) There were no non-audit services fees billed by the Registrant's accountant to the Registrant's investment adviser or distributor over the past two years
   
(h) Not applicable.

 

 

 

 
 
 

 

ITEM 5.     AUDIT COMMITTEE OF LISTED REGISTRANTS.

 

Not applicable.

 

ITEM 6.     INVESTMENTS.

 

(a)                 Schedule I -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) Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that the information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
   
  Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant has carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
   
(b) Change in Internal Controls. There have been no significant changes in Registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

 

 

 
 
 

ITEM 12.     DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT
                      INVESTMENT COMPANIES

 

Not applicable

 

ITEM 13.     EXHIBITS.

 

(a)(1) Aquila Group of Funds Code of Ethics for Principal Executive and Senior Financial Officers under Section 406 of the Sarbanes-Oxley Act of 2002, as amended.
   
(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.

 

 

AQUILA MUNICIPAL TRUST

 

 

By:   /s/ Diana P. Herrmann                  

Vice Chair, Trustee and President

June 4, 2024

 

 

By:   /s/ Joseph P. DiMaggio               

June 4, 2024

 

 

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

Vice Chair, Trustee and President

June 4, 2024

 

 

By:   /s/ Joseph P. DiMaggio               

Joseph P. DiMaggio

Chief Financial Officer and Treasurer

June 4, 2024