Letter to Shareholders
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Economic Overview
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1
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Outlook
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2
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Portfolio of Investments
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Virginia Tax-Free Fund
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4
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Tax-Free National Fund
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6
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Statements of Assets and Liabilities
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8
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Statements of Operations
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9
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Statements of Changes in Net Assets
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9
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Financial Highlights
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10
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Notes to Financial Statements
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11
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Other Information
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15
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INDUSTRY ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF 3/31/12
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Airport
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0.5%
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Development
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5.5%
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Education
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9.6%
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Facilities
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13.3%
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General
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7.5%
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General Obligation
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14.2%
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Medical
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11.0%
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Multifamily Housing
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8.4%
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Power
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3.9%
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Transportation
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3.2%
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Utilities
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3.9%
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Water
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16.5%
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Cash & Other
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2.5%
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STATE ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF 3/31/12
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Alabama
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2.5%
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Arizona
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3.1%
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Arkansas
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1.7%
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Colorado
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1.4%
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Florida
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10.7%
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Georgia
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7.4%
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Illinois
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6.0%
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Indiana
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5.4%
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Iowa
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0.7%
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Kentucky
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0.4%
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Maryland
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4.3%
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Massachusetts
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2.2%
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Michigan
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5.1%
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Mississippi
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2.7%
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Missouri
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3.1%
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New Jersey
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3.3%
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New York
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3.6%
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North Carolina
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6.3%
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Ohio
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1.7%
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Pennsylvania
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2.6%
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South Carolina
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1.6%
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Texas
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14.9%
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Virginia
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4.6%
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Washington
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2.0%
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Wisconsin
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0.7%
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Cash & Other
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2.0%
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Par Value
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Value (Note 1)
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LONG TERM MUNICIPAL BONDS - 97.5%
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Airport - 0.5%
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Capital Region Airport Commission, (AGM) 5%, 7/1/20
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$ 125,000
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$ 135,440
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Development - 5.5%
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Loudoun County Industrial Development Authority, 5%, 6/1/31
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500,000
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552,945
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Prince William County Industrial Development Authority, 5.25%, 2/1/18
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675,000
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797,891
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1,350,836
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Education - 9.6%
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Lexington Industrial Development Authority, 4.25%, 12/1/20
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150,000
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173,734
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Prince William County Industrial Development Authority, 5%, 10/1/18
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150,000
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157,015
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University of Virginia, 5%, 6/1/40
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255,000
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279,715
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Virginia College Building Authority, 5%, 4/1/16
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100,000
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110,563
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Virginia College Building Authority, 5%, 9/1/26
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140,000
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158,652
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Virginia College Building Authority, (ST APPROP) 5%, 2/1/29
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375,000
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426,915
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Virginia College Building Authority, (ST APPROP) 5%, 2/1/23
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500,000
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614,690
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Virginia Public School Authority, 5%, 8/1/27
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350,000
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395,202
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Virginia Public School Authority, 5%, 12/1/18
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100,000
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114,058
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2,430,544
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Facilities - 13.3%
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Gloucester County Industrial Development Authority, (NATL-RE) 4.375%, 11/1/25
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500,000
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518,660
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Henrico County Economic Development Authority, 5%, 10/1/18
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170,000
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204,923
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Newport News Economic Development Authority, 5%, 7/1/25
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745,000
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812,899
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Northwestern Regional Jail Authority, (NATL-RE) 5%, 7/1/19
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50,000
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54,520
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Prince William County Park Authority, 4%, 4/15/24
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320,000
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341,402
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Roanoke County Economic Development Authority, (ASSURED GTY) 5%, 10/15/16
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400,000
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462,236
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Stafford County & Staunton Industrial Development Authority, (NATL-RE) 4.5%, 8/1/25
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700,000
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722,428
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Virginia Public Building Authority, 5.25%, 8/1/23
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200,000
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234,410
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3,351,478
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General - 7.5%
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Fairfax County Economic Development Authority, (NATL-RE) 5.25%, 9/1/19
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500,000
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501,165
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Par Value
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Value (Note 1)
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Fairfax County Economic Development Authority, 4.25%, 8/1/29
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$ 340,000
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$ 359,271
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County of Prince William VA, Certificate Participation (AMBAC) 5%, 6/1/22
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750,000
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810,375
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Puerto Rico Public Finance Corp, (Escrowed To Maturity) (AMBAC) 5.5%, 8/1/27
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100,000
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130,673
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Virgin Islands Public Finance Authority, (NATL-RE FGIC) 5%, 10/1/23
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100,000
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104,450
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1,905,934
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General Obligation - 14.2%
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City of Alexandria VA, General Obligation 5%, 1/1/16
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200,000
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230,740
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County of Arlington VA, General Obligation (Prerefunded 1/15/17 @ 100) 5%, 1/15/25
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175,000
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208,226
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County of Henrico VA, General Obligation (Prerefunded 12/01/18 @ 100) 5%, 12/1/24
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200,000
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246,762
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County of Henrico VA, General Obligation 5%, 7/15/25
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150,000
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177,149
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City of Hopewell VA, General Obligation 5.875%, 7/15/34
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500,000
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562,710
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Town of Leesburg VA, General Obligation 5%, 1/15/41
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135,000
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150,079
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County of Loudoun VA, General Obligation (Prerefunded 12/01/17 @ 100) 5%, 12/1/18
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165,000
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200,104
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County of Prince George VA, General Obligation (ASSURED GTY ) 5%, 2/1/20
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200,000
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230,808
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City of Richmond VA, General Obligation (AGM) 5%, 7/15/23
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750,000
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799,890
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City of Roanoke VA, General Obligation 5%, 2/1/25
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230,000
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266,906
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Commonwealth of Virginia, General Obligation 5%, 6/1/26
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300,000
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344,028
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Commonwealth of Virginia, General Obligation 5%, 6/1/27
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150,000
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174,328
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3,591,730
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Medical - 11.0%
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Augusta County Industrial Development Authority, 5.25%, 9/1/20
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1,000,000
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1,147,670
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Charlotte County Industrial Development Authority/VA, 5%, 9/1/16
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335,000
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365,793
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Harrisonburg Industrial Development Authority, (AMBAC) 4%, 8/15/16
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200,000
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219,000
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Harrisonburg Industrial Development Authority, (AMBAC) 5%, 8/15/46
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180,000
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185,027
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Henrico County Economic Development Authority, (NATL-RE) 6%, 8/15/16
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260,000
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276,760
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Roanoke Economic Development Authority, (Escrowed To Maturity) (NATL-RE) 6.125%, 7/1/17
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500,000
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578,545
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2,772,795
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Par Value
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Value (Note 1)
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Multifamily Housing - 8.4%
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Fairfax County Redevelopment & Housing Authority, 4.75%, 10/1/36
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$ 725,000
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$ 775,880
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Fairfax County Redevelopment & Housing Authority, 5%, 10/1/39
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300,000
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325,518
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Suffolk Redevelopment & Housing Authority, 5.6%, 2/1/33
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750,000
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756,578
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Virginia Housing Development Authority, 4.8%, 10/1/39
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250,000
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262,093
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2,120,069
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Power - 3.9%
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Chesterfield County Economic Development Authority, 5%, 5/1/23
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565,000
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638,077
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Puerto Rico Electric Power Authority, (BHAC-CR MBIA-RE FGIC) 5.25%, 7/1/24
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290,000
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335,463
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973,540
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Transportation - 3.2%
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Puerto Rico Highway & Transportation Authority, (NATL-RE) 5.25%, 7/1/32
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445,000
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464,820
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Puerto Rico Highway & Transportation Authority, (ASSURED GTY) 5.25%, 7/1/34
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100,000
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111,518
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Richmond Metropolitan Authority, (Escrowed To Maturity) (NATL-RE FGIC) 5.25%, 7/15/22
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60,000
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74,189
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Richmond Metropolitan Authority, (NATL-RE FGIC) 5.25%, 7/15/22
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140,000
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161,391
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811,918
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Utilities - 3.9%
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City of Richmond VA, (AGM) 4.5%, 1/15/33
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940,000
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987,348
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Water - 16.5%
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Fairfax County Water Authority, 5.25%, 4/1/23
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180,000
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228,109
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Par Value
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Value (Note 1)
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Frederick-Winchester Service Authority, (AMBAC) 5%, 10/1/15
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$ 570,000
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$ 639,067
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Hampton Roads Sanitation District, 5%, 4/1/33
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250,000
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272,932
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Henry County Public Service Authority, (AGM) 5.25%, 11/15/13
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700,000
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748,202
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Henry County Public Service Authority, (AGM) 5.25%, 11/15/15
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150,000
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169,374
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City of Norfolk VA Water Revenue, (NATL-RE) 5.9%, 11/1/25
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210,000
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210,626
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Upper Occoquan Sewage Authority, (NATL-RE) 5.15%, 7/1/20
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1,000,000
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1,231,390
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Virginia Resources Authority, 5%, 10/1/27
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300,000
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350,727
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Virginia Resources Authority, 4.5%, 10/1/28
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160,000
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178,955
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Virginia Resources Authority, 5%, 11/1/31
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160,000
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174,438
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4,203,820
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TOTAL INVESTMENTS - 97.5% (Cost $23,148,998)
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24,635,452
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NET OTHER ASSETS AND LIABILITIES - 2.5%
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629,399
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TOTAL ASSETS - 100.0%
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$25,264,851
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AGM
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Assured Guaranty Municipal Corp.
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AMBAC
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AMBAC Indemnity Corp.
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ASSURED GTY
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Assured Guaranty
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BHAC-CR
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Berkshire Hathaway Assuranty Corp.
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FGIC
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Financial Guaranty Insurance Co.
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MBIA-RE
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MBIA Insurance Corp.
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NATL-RE
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National Public Finance Guarantee Corp.
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ST APPROP
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State Appropriations
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Par Value
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Value (Note 1)
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LONG TERM MUNICIPAL BONDS - 98.0%
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Alabama - 2.5%
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Troy University, (ASSURED GTY) 4.125%, 11/1/23
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$ 420,000
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$ 442,184
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Tuscaloosa Public Educational Building Authority, (ASSURED GTY) 6.375%, 7/1/28
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295,000
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342,524
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784,708
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Arizona - 3.1%
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City of Tempe AZ, 5%, 7/1/20
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225,000
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248,616
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Glendale Western Loop 101 Public Facilities Corp, 6%, 7/1/24
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525,000
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564,506
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Northern Arizona University, Certificate Participation (AMBAC) 5%, 9/1/23
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150,000
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157,806
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970,928
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Arkansas - 1.7%
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City of Fort Smith AR Water & Sewer Revenue, (AGM) 5%, 10/1/21
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175,000
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203,686
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Lake Hamilton School District No. 5 of Garland County, General Obligation Ltd 3%, 4/1/21
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320,000
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329,232
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532,918
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Colorado - 1.4%
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El Paso County Facilities Corp, Certificate Participation 5%, 12/1/27
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400,000
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447,184
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Florida - 10.7%
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Emerald Coast Utilities Authority, (NATL-RE FGIC) 5%, 1/1/25
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1,010,000
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1,041,896
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Highlands County Health Facilities Authority, 5%, 11/15/20
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455,000
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503,526
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Lee County Industrial Development Authority/FL, 5%, 11/1/28
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500,000
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521,585
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Peace River/Manasota Regional Water Supply Authority, (AGM) 5%, 10/1/23
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750,000
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800,910
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State of Florida, General Obligation (ST GTD) 4.75%, 6/1/35
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500,000
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522,690
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3,390,607
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Georgia - 7.4%
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Augusta-Richmond County Coliseum Authority, (CNTY GTD) 5%, 10/1/23
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890,000
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1,053,306
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City of Atlanta GA Water & Wastewater Revenue, (AGM) 5.75%, 11/1/30
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300,000
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384,909
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Emanuel County Hospital Authority, (AMBAC CNTY GTD) 4.3%, 7/1/17
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250,000
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264,125
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Georgia State Road & Tollway Authority, 5%, 6/1/21
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90,000
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106,407
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Gwinnett County Development Authority, Certificate Participation (NATL-RE) 5.25%, 1/1/18
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225,000
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267,158
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Gwinnett County Development Authority, Certificate Participation (NATL-RE) 5.25%, 1/1/21
|
100,000
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121,997
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Par Value
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Value (Note 1)
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Private Colleges & Universities Authority, 5%, 9/1/38
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$ 130,000
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$ 140,716
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2,338,618
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Illinois - 6.0%
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County of Winnebago IL, General Obligation (NATL-RE) 5%, 12/30/24
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1,000,000
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1,068,590
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Metropolitan Water Reclamation District of Greater Chicago, General Obligation Ltd 3%, 12/1/21
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495,000
|
513,954
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Regional Transportation Authority, (AMBAC GO OF AUTH) 7.2%, 11/1/20
|
260,000
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310,398
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1,892,942
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Indiana - 5.4%
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Indianapolis Local Public Improvement Bond Bank, (ASSURED GTY) 5.5%, 1/1/38
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475,000
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519,351
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Western Boone Multi-School Building Corp, General Obligation (AGM ) 5%, 1/10/20
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1,015,000
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1,205,688
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1,725,039
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Iowa - 0.7%
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City of Bettendorf IA, General Obligation 5%, 6/1/30
|
210,000
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235,343
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Kentucky - 0.4%
|
||
Laurel County School District Finance Corp, (AGM SEEK) 4%, 6/1/16
|
110,000
|
121,185
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Maryland - 4.3%
|
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Maryland Health & Higher Educational Facilities Authority, (AGM) 5.25%, 8/15/38
|
535,000
|
606,417
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Maryland State Transportation Authority, (Escrowed To Maturity) 6.8%, 7/1/16
|
60,000
|
68,234
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Montgomery County Revenue Authority, 5%, 5/1/31
|
600,000
|
681,936
|
1,356,587
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||
Massachusetts - 2.2%
|
||
Massachusetts School Building Authority, (AGM) 5%, 8/15/23
|
635,000
|
711,632
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Michigan - 5.1%
|
||
Charles Stewart Mott Community College, General Obligation (NATL-RE) 5%, 5/1/18
|
720,000
|
782,971
|
Detroit City School District, General Obligation (FGIC Q-SBLF) 6%, 5/1/20
|
300,000
|
365,310
|
Redford Unified School District No. 1, General Obligation (AMBAC Q-SBLF) 5%, 5/1/22
|
410,000
|
467,810
|
1,616,091
|
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Mississippi - 2.7%
|
||
Harrison County Wastewater Management District, (Escrowed To Maturity) (FGIC) 7.75%, 2/1/14
|
500,000
|
566,360
|
Harrison County Wastewater Management District, (Escrowed To Maturity) (FGIC) 8.5%, 2/1/13
|
260,000
|
277,529
|
843,889
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Par Value
|
Value (Note 1)
|
|
Missouri - 3.1%
|
||
City of O’Fallon MO, Certificate Participation (NATL-RE) 5.25%, 11/1/16
|
$ 100,000
|
$ 112,323
|
County of St Louis MO, (Escrowed To Maturity) 5.65%, 2/1/20
|
500,000
|
624,995
|
St Louis Industrial Development Authority, 6.65%, 5/1/16
|
200,000
|
238,378
|
975,696
|
||
New Jersey - 3.3%
|
||
New Jersey State Turnpike Authority, (BHAC-CR FSA) 5.25%, 1/1/28
|
250,000
|
310,165
|
New Jersey State Turnpike Authority, (Escrowed To Maturity) (NATL-RE-IBC) 6.5%, 1/1/16
|
655,000
|
749,019
|
1,059,184
|
||
New York - 3.6%
|
||
City of North Tonawanda NY, General Obligation 4%, 4/1/21
|
240,000
|
259,423
|
New York State Dormitory Authority, (BHAC-CR AMBAC) 5.5%, 7/1/31
|
250,000
|
319,567
|
Port Authority of New York & New Jersey, (GO OF AUTH) 5.375%, 3/1/28
|
455,000
|
551,906
|
1,130,896
|
||
North Carolina - 6.3%
|
||
City of Raleigh NC, Certificate Participation 4.75%, 6/1/25
|
590,000
|
619,229
|
County of Dare NC, Certificate Participation (Prerefunded 12/01/12 @ 100) (AMBAC) 5%, 6/1/23
|
600,000
|
619,056
|
North Carolina Medical Care Commission, (HUD SECT 8) 5.5%, 10/1/24
|
500,000
|
522,145
|
State of North Carolina, (ST APPROP) 4.5%, 5/1/27
|
200,000
|
220,198
|
1,980,628
|
||
Ohio - 1.7%
|
||
County of Allen OH, 4.75%, 9/1/27
|
530,000
|
551,979
|
Pennsylvania - 2.6%
|
||
Lehigh County General Purpose Authority, (NATL-RE GO OF HOSP) 7%, 7/1/16
|
760,000
|
832,086
|
South Carolina - 1.6%
|
||
York County School District No.1, SC, General Obligation (SCSDE) 5%, 3/1/27
|
440,000
|
498,340
|
Texas - 14.9%
|
||
Beaumont Independent School District, General Obligation (PSF-GTD) 4.75%, 2/15/38
|
300,000
|
323,607
|
City of San Antonio TX Water System Revenue, 5.125%, 5/15/29
|
500,000
|
567,790
|
City of Sugar Land TX, General Obligation Ltd 5%, 2/15/28
|
350,000
|
394,184
|
County of Bexar TX, General Obligation Ltd 4%, 6/15/32
|
450,000
|
462,658
|
County of Harris TX, General Obligation Ltd (Prerefunded 10/01/18 @ 100) 5.75%, 10/1/24
|
250,000
|
317,970
|
Par Value
|
Value (Note 1)
|
|
Liberty Hill Independent School District, General Obligation (PSF-GTD) 5%, 8/1/26
|
$ 410,000
|
$ 472,865
|
Lower Colorado River Authority, (Escrowed To Maturity) (AMBAC) 6%, 1/1/17
|
305,000
|
372,591
|
Mueller Local Government Corp, 5%, 9/1/25
|
1,280,000
|
1,422,938
|
State of Texas, General Obligation 5%, 8/1/27
|
330,000
|
384,176
|
4,718,779
|
||
Virginia - 4.6%
|
||
City of Hopewell VA, General Obligation 5.875%, 7/15/34
|
500,000
|
562,710
|
Commonwealth of Virginia, General Obligation 5%, 6/1/27
|
150,000
|
174,329
|
Fairfax County Redevelopment & Housing Authority, 5%, 10/1/39
|
265,000
|
287,541
|
Henry County Public Service Authority, (AGM) 5.25%, 11/15/15
|
150,000
|
169,374
|
Virginia Housing Development Authority, 4.8%, 10/1/39
|
250,000
|
262,092
|
1,456,046
|
||
Washington - 2.0%
|
||
Grays Harbor County Public Utility District No. 1, (AGM) 5.25%, 7/1/24
|
605,000
|
644,791
|
Wisconsin - 0.7%
|
||
Wisconsin Health & Educational Facilities Authority, 5.25%, 10/1/21
|
200,000
|
209,348
|
TOTAL INVESTMENTS - 98.0% (Cost $29,198,903)
|
31,025,444
|
|
NET OTHER ASSETS AND LIABILITIES - 2.0%
|
637,111
|
|
TOTAL ASSETS - 100.0%
|
$31,662,555
|
AGM
|
Assured Guaranty Municipal Corp.
|
AMBAC
|
AMBAC Indemnity Corp.
|
ASSURED GTY
|
Assured Guaranty
|
BHAC-CR
|
Berkshire Hathaway Assuranty Corp.
|
CNTY GTD
|
County Guaranteed
|
FGIC
|
Financial Guaranty Insurance Co.
|
FSA
|
Financial Security Assurance
|
GO of AUTH
|
General Obligation of the Authority
|
GO of HOSP
|
General Obligation of the Hospital District
|
HUD SECTION 8
|
HUD Insured Multifamily Housing
|
IBC
|
Insured Bond Certificate
|
NATL-RE
|
National Public Finance Guarantee Corp.
|
PSF GTD
|
Permanent School Fund Guaranteed
|
Q-SBLF
|
Qualified School Board Loan Fund
|
SCSDE
|
South Carolina School District-Enhanced (State of SC’s Intercept program)
|
SEEK
|
Support Education Excellence in Kentucky (State of KY’s school district enhancement program for low income communities)
|
ST APPROP
|
State Appropriations
|
ST GTD
|
State Guaranteed
|
Virginia
Fund
|
National
Fund
|
|
ASSETS
|
||
Investment securities, at value* (Note 1)
|
$24,635,452
|
$31,025,444
|
Cash
|
329,610
|
219,829
|
Receivables
|
||
Interest
|
307,833
|
424,942
|
Capital shares sold
|
155
|
18,195
|
Total assets
|
25,273,050
|
31,688,410
|
LIABILITIES
|
||
Payables
|
||
Dividends
|
3,262
|
20,264
|
Capital shares redeemed
|
687
|
1,341
|
Independent trustee fees
|
750
|
750
|
Auditor fees
|
3,500
|
3,500
|
Total liabilities
|
8,199
|
25,855
|
NET ASSETS
|
$25,264,851
|
$31,662,555
|
Net assets consists of:
|
||
Paid in capital
|
23,645,705
|
29,739,212
|
Accumulated net realized gains
|
132,692
|
96,802
|
Net unrealized appreciation on investments
|
1,486,454
|
1,826,541
|
Net assets
|
$25,264,851
|
$31,662,555
|
CAPITAL SHARES OUTSTANDING
|
||
An unlimited number of capital shares, without par value, are authorized (Note 6)
|
2,106,815
|
2,836,326
|
NET ASSET VALUE PER SHARE
|
$ 11.99
|
$ 11.16
|
* INVESTMENT SECURITIES, AT COST
|
$23,148,998
|
$29,198,903
|
Virginia
Fund
|
National
Fund
|
|
INVESTMENT INCOME (Note 1)
|
||
Interest income
|
$ 492,447
|
$ 634,059
|
EXPENSES (Notes 2, 3 and 7)
|
||
Investment advisory fees
|
78,873
|
98,531
|
Other expenses
|
45,479
|
63,059
|
Independent trustee fees
|
1,500
|
1,500
|
Auditor fees
|
3,500
|
3,500
|
Line of credit interest and fees
|
250
|
250
|
Total expenses
|
129,602
|
166,840
|
NET INVESTMENT INCOME
|
362,845
|
467,219
|
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
|
||
Net realized gain on investments
|
132,692
|
98,736
|
Change in net unrealized appreciation of investments
|
35,890
|
320,535
|
NET GAINS ON INVESTMENTS
|
168,582
|
419,271
|
TOTAL INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
|
$ 531,427
|
$ 886,490
|
Virginia Fund
|
National Fund
|
|||
(unaudited) Six-Months Ended
March 31,
|
Year Ended September 30,
|
(unaudited) Six-Months Ended
March 31,
|
Year Ended September 30,
|
|
2012
|
2011
|
2012
|
2011
|
|
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
||||
Net investment income
|
$ 362,845
|
$ 757,802
|
$ 467,219
|
$ 871,821
|
Net realized gain on investments
|
132,692
|
17,310
|
98,736
|
115,824
|
Change in net unrealized appreciation (depreciation) on investments
|
35,890
|
(65,073)
|
320,535
|
(182,718)
|
Total increase in net assets resulting from operations
|
531,427
|
710,039
|
886,490
|
804,927
|
DISTRIBUTION TO SHAREHOLDERS
|
||||
From net investment income
|
(362,845)
|
(757,802)
|
(467,219)
|
(871,821)
|
From net capital gains
|
(17,310)
|
(126,808)
|
(108,327)
|
(232,291)
|
Total distributions
|
(380,155)
|
(884,610)
|
(575,546)
|
(1,104,112)
|
CAPITAL SHARE TRANSACTIONS (Note 6)
|
104,861
|
(986,964)
|
32,999
|
2,271,245
|
NET INCREASE (DECREASE) IN NET ASSETS
|
256,133
|
(1,161,535)
|
343,943
|
1,972,060
|
NET ASSETS
|
||||
Beginning of period
|
$25,008,718
|
$26,170,253
|
$31,318,612
|
$29,346,552
|
End of period
|
$25,264,851
|
$25,008,718
|
$31,662,555
|
$31,318,612
|
VIRGINIA FUND
|
||||||
(unaudited)
Six-Months Ended
March 31,
|
Year Ended September 30,
|
|||||
2012
|
2011
|
2010
|
2009
|
2008
|
2007
|
|
Net asset value, beginning of year
|
$11.92
|
$11.98
|
$11.87
|
$11.01
|
$11.43
|
$11.63
|
Investment operations:
|
||||||
Net investment income
|
0.17
|
0.35
|
0.37
|
0.37
|
0.38
|
0.39
|
Net realized and unrealized gain (loss) on investments
|
0.08
|
–
|
0.16
|
0.91
|
(0.39)
|
(0.15)
|
Total from investment operations
|
0.25
|
0.35
|
0.53
|
1.28
|
(0.01)
|
0.24
|
Less distribution from:
|
||||||
Net investment income
|
(0.17)
|
(0.35)
|
(0.37)
|
(0.37)
|
(0.38)
|
(0.39)
|
Net realized gains
|
(0.01)
|
(0.06)
|
(0.05)
|
(0.05)
|
(0.03)
|
(0.05)
|
Total distributions
|
(0.18)
|
(0.41)
|
(0.42)
|
(0.42)
|
(0.41)
|
(0.44)
|
Net asset value, end of year
|
$11.99
|
$11.92
|
$11.98
|
$11.87
|
$11.01
|
$11.43
|
Total return (%)
|
2.11
|
3.10
|
4.54
|
11.87
|
(0.11)
|
2.13
|
Ratios and supplemental data
|
||||||
Net assets, end of year (in thousands)
|
$25,265
|
$25,009
|
$26,170
|
$25,883
|
$22,416
|
$23,240
|
Ratio of expenses to average net assets (%)
|
1.031
|
1.03
|
1.03
|
1.03
|
1.03
|
1.03
|
Ratio of net investment income to average net assets (%)
|
2.871
|
3.03
|
3.10
|
3.26
|
3.31
|
3.37
|
Portfolio turnover (%)
|
9
|
7
|
19
|
18
|
7
|
12
|
NATIONAL FUND
|
||||||
(unaudited)
Six-Months Ended
March 31,
|
Year Ended September 30,
|
|||||
2012
|
2011
|
2010
|
2009
|
2008
|
2007
|
|
Net asset value, beginning of year
|
$11.05
|
$11.16
|
$11.09
|
$10.34
|
$10.75
|
$10.95
|
Investment operations:
|
||||||
Net investment income
|
0.16
|
0.34
|
0.36
|
0.37
|
0.38
|
0.38
|
Net realized and unrealized gain (loss) on investments
|
0.15
|
(0.02)
|
0.12
|
0.82
|
(0.38)
|
(0.15)
|
Total from investment operations
|
0.31
|
0.32
|
0.48
|
1.19
|
0.00
|
0.23
|
Less distribution from:
|
||||||
Net investment income
|
(0.16)
|
(0.34)
|
(0.36)
|
(0.37)
|
(0.38)
|
(0.38)
|
Net realized gains
|
(0.04)
|
(0.09)
|
(0.05)
|
(0.07)
|
(0.03)
|
(0.05)
|
Total distributions
|
(0.20)
|
(0.43)
|
(0.41)
|
(0.44)
|
(0.41)
|
(0.43)
|
Net asset value, end of year
|
$11.16
|
$11.05
|
$11.16
|
$11.09
|
$10.34
|
$10.75
|
Total return (%)
|
2.86
|
3.02
|
4.43
|
11.73
|
(0.13)
|
2.14
|
Ratios and supplemental data
|
||||||
Net assets, end of year (in thousands)
|
$31,663
|
$31,319
|
$29,347
|
$29,143
|
$26,598
|
$28,579
|
Ratio of expenses to average net assets (%)
|
1.061
|
1.06
|
1.06
|
1.06
|
1.06
|
1.05
|
Ratio of net investment income to average net assets (%)
|
2.961
|
3.11
|
3.26
|
3.44
|
3.47
|
3.52
|
Portfolio turnover (%)
|
8
|
13
|
19
|
17
|
13
|
17
|
|
Level 1 – unadjusted quoted prices in active markets for identical securities
|
|
Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rate volatilities, prepayment speeds, credit risk, benchmark yields, transactions, bids, offers, new issues, spreads and other relationships observed in the markets among comparable securities, underlying equity of the issuer; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data, etc.)
|
|
Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)
|
Fund
|
Level 1
|
Level 2
|
Level 3
|
Value at
3/31/12
|
Virginia Fund
|
||||
Long Term Municipal Bonds
|
$ –
|
$24,635,452
|
$ –
|
$24,635,452
|
Total
|
$ –
|
$24,635,452
|
$ –
|
$24,635,452
|
National Fund
|
||||
Long Term Municipal Bonds
|
$ –
|
$31,025,444
|
$ –
|
$31,025,444
|
Total
|
$ –
|
$31,025,444
|
$ –
|
$31,025,444
|
Please see the Portfolio of Investments for each respective Fund for a listing of all securities within the Long Term Municipal Bond category.
|
Accumulated net realized gains
|
$ 132,692
|
Net unrealized appreciation on investments
|
1,486,454
|
$1,619,146
|
Accumulated net realized gains
|
$ 96,802
|
Net unrealized appreciation on investments
|
1,826,541
|
$1,923,343
|
Virginia
Fund
|
National
Fund
|
|
Aggregate Cost
|
$23,148,998
|
$29,198,903
|
Gross unrealized appreciation
|
1,501,812
|
1,855,356
|
Gross unrealized depreciation
|
(15,358)
|
(28,815)
|
Net unrealized appreciation
|
$ 1,486,454
|
$ 1,826,541
|
Purchases
|
Sales
|
|
Virginia Fund
|
$2,120,612
|
$2,211,421
|
National Fund
|
$2,462,758
|
$2,488,694
|
(unaudited)
Six-Months Ended
March 31,
|
Year Ended September 30,
|
|
Virginia Fund
|
2012
|
2011
|
In Dollars
|
||
Shares sold
|
$ 714,285
|
$ 1,432,661
|
Shares issued in reinvestment of dividends
|
360,670
|
833,257
|
Total shares issued
|
1,074,955
|
2,265,918
|
Shares redeemed
|
(970,094)
|
(3,252,882)
|
Net increase (decrease)
|
$ 104,861
|
$ (986,964)
|
In Shares
|
||
Shares sold
|
59,240
|
122,360
|
Shares issued in reinvestment of dividends
|
30,057
|
71,783
|
Total shares issued
|
89,297
|
194,143
|
Shares redeemed
|
(80,507)
|
(280,622)
|
Net increase (decrease)
|
8,790
|
(86,479)
|
(unaudited)
Six-Months Ended
March 31,
|
Year Ended September 30,
|
|
National Fund
|
2012
|
2011
|
In Dollars
|
||
Shares sold
|
$1,168,287
|
$ 5,549,958
|
Shares issued in reinvestment of dividends
|
431,578
|
927,556
|
Total shares issued
|
1,599,865
|
6,477,514
|
Shares redeemed
|
(1,566,866)
|
(4,206,269)
|
Net increase
|
$ 32,999
|
$ 2,271,245
|
In Shares
|
||
Shares sold
|
104,243
|
508,517
|
Shares issued in reinvestment of dividends
|
38,711
|
86,386
|
Total shares issued
|
142,954
|
594,903
|
Shares redeemed
|
(140,804)
|
(389,514)
|
Net increase
|
2,150
|
205,389
|
Based on Actual Total Return1
|
|||||
Actual
Total Return2
|
Beginning
Account Value
|
Ending
Account Value
|
Annualized
Expense Ratio3
|
Expenses Paid
During the Period3
|
|
Virginia Fund
|
2.11%
|
$1,000.00
|
$1,021.13
|
1.03%
|
$5.21
|
National Fund
|
2.86%
|
$1,000.00
|
$1,028.56
|
1.06%
|
$5.38
|
1For the six-months ended March 31, 2012.
|
|||||
2Assumes reinvestment of all dividends and capital gains distributions, if any, at net asset value.
|
|||||
3Expenses are equal to the respective Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365.
|
Based on Hypothetical Total Return1
|
|||||
Hypothetical Annualized
Total Return
|
Beginning
Account Value
|
Ending
Account Value
|
Annualized
Expense Ratio2
|
Expenses Paid
During the Period2
|
|
Virginia Fund
|
5.00%
|
$1,000.00
|
$1,025.26
|
1.03%
|
$5.20
|
National Fund
|
5.00%
|
$1,000.00
|
$1,025.26
|
1.06%
|
$5.36
|
1For the six-months ended March 31, 2012.
|
|||||
2Expenses are equal to the respective Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365.
|