-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JjBHiXgws5kQb/6/c7+aazvhKGc8qUZ/6LDQ85nMLfMdvmY3Rk6u5y7npMn9ASHz aJgk9LJxmoVmAWS39p8gGA== 0000791049-04-000017.txt : 20040607 0000791049-04-000017.hdr.sgml : 20040607 20040607135837 ACCESSION NUMBER: 0000791049-04-000017 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040607 EFFECTIVENESS DATE: 20040607 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CASCADES TRUST CENTRAL INDEX KEY: 0000791049 IRS NUMBER: 136868231 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-04626 FILM NUMBER: 04851556 BUSINESS ADDRESS: STREET 1: 380 MADISON AVE STE 2300 CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2126976666 MAIL ADDRESS: STREET 1: 380 MADISON AVENUE STREET 2: # 2300 CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: TAX FREE TRUST OF OREGON DATE OF NAME CHANGE: 19890810 N-CSR 1 tftoncsr33104.txt TAX-FREE TRUST OF OREGON 3/31/04 SEMI REPORT ON FORM NCSR 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 811-4626 Tax-Free Trust or Oregon (Exact name of Registrant as specified in charter) 380 Madison Avenue New York, New York 10017 (Address of principal executive offices) (Zip code) Joseph P. DiMaggio 380 Madison Avenue New York, New York 10017 (Name and address of agent for service) Registrant's telephone number, including area code: (212) 697-6666 Date of fiscal year end: 9/30 Date of reporting period: 3/31/04 FORM N-CSR ITEM 1. REPORTS TO STOCKHOLDERS. SERVING OREGON INVESTORS FOR OVER 15 YEARS TAX-FREE TRUST OF OREGON 380 MADISON AVENUE, SUITE 2300 * NEW YORK, NY 10017 800-437-1020 * 212-697-6666 [Logo of Tax-Free Trust of Oregon: a square containing two trees in front of mountains] SEMI-ANNUAL REPORT TAX-FREE TRUST OF OREGON STATEMENT OF INVESTMENTS MARCH 31, 2004 (UNAUDITED)
RATING FACE MOODY'S/ AMOUNT STATE OF OREGON GENERAL OBLIGATION BONDS (58.7%) S&P VALUE - ----------- ------------------------------------------------------ -------- ------------ Beaverton, Oregon $ 1,020,000 6.150%, 04/01/2005.............................. Aa3/AA $ 1,020,000 1,080,000 6.250%, 04/01/2006.............................. Aa3/AA 1,080,000 Bend, Oregon Transportation Highway System (MBIA Corporation Insured) 1,135,000 5.300%, 9/1/2017................................ Aaa/NR 1,245,140 Benton and Linn Counties Oregon School District #509J (Financial Security Assurance Insured) 4,670,000 5.000%, 06/01/2021.............................. Aaa/NR 4,976,866 Chemeketa, Oregon Community College District (Financial Guaranty Insurance Corporation Insured) 1,385,000 5.500%, 06/01/2014.............................. Aaa/AAA 1,619,965 Clackamas County, Oregon School District #007J (Lake Oswego) 1,500,000 5.700%, 06/15/2010.............................. Aa2/NR 1,512,705 1,340,000 5.375%, 06/01/2013.............................. Aa2/NR 1,518,609 Clackamas County, Oregon School District #62 (Oregon City) (Financial Security Assurance Insured) 5,270,000 5.000%, 06/15/2016.............................. Aaa/AAA 5,842,427 Clackamas County, Oregon School District #62 (Oregon City) (State School Bond Guaranty Program) 1,330,000 5.375%, 06/15/2017.............................. Aa3/AA- 1,529,992 2,055,000 5.500%, 06/15/2020.............................. Aa3/AA- 2,378,560 Clackamas County, Oregon School District #86 (Canby) (State School Bond Guaranty Program) 3,535,000 5.250%, 06/15/2020.............................. Aa3/AA- 3,823,456 Clackamas County, Oregon School District #108 (Estacada) (Financial Security Assurance Insured) 1,295,000 5.375%, 06/15/2017.............................. Aaa/AAA 1,436,013 2,000,000 5.000%, 06/15/2025.............................. Aaa/AAA 2,081,960 Clackamas County, Oregon School District #115 (Gladstone) (AMBAC Indemnity Corporation Insured) 615,000 5.700%, 06/01/2007.............................. Aaa/AAA 631,851 Clackamas County, Oregon Tax Allocation 1,000,000 6.500%, 05/01/2020.............................. NR/NR* 1,000,870 Clackamas, Oregon Community College District (Financial Guaranty Insurance Corporation Insured) $ 3,955,000 5.250%, 06/15/2017.............................. Aaa/AAA $ 4,341,522 4,310,000 5.250%, 06/15/2018.............................. Aaa/AAA 4,697,081 Clackamas and Washington Counties, Oregon School District #3J (Financial Guaranty Insurance Corporation Insured) 1,620,000 5.000%, 06/01/2017.............................. Aaa/AAA 1,712,291 Clatsop County School District #1 (Astoria) (State School Bond Guaranty Program) 1,855,000 5.500%, 06/15/2019.............................. NR/AA- 2,147,070 Columbia County, Oregon School District #502 (Financial Guaranty Insurance Corporation Insured) 2,070,000 zero coupon, 06/01/2015.. ...................... Aaa/AAA 1,333,639 Deschutes County, Oregon (Financial Security Assurance Insured) 2,000,000 5.000%, 12/01/2014.............................. Aaa/NR 2,223,840 1,615,000 5.000%, 12/01/2015.............................. Aaa/NR 1,789,388 2,260,000 5.000%, 12/01/2016.............................. Aaa/NR 2,482,813 Deschutes County, Oregon Administrative School District #1 (Bend-LaPine) 1,500,000 5.000%, 12/01/2017.............................. A1/A 1,617,315 Deschutes County, Oregon Administrative School District #1 (Bend-LaPine) (Financial Security Assurance Insured) 1,145,000 5.500%, 06/15/2014.............................. Aaa/NR 1,309,033 1,300,000 5.500%, 06/15/2016.............................. Aaa/NR 1,476,423 1,355,000 5.500%, 06/15/2018.............................. Aaa/NR 1,532,410 3,000,000 5.125%, 06/15/2021.............................. Aaa/NR 3,183,960 Douglas County, Oregon School District #4 (Roseburg) (State School Bond Guaranty Program) 1,075,000 5.125%, 12/15/2017.............................. Aa3/NR 1,170,697 Douglas County, Oregon School District #116(Winston- Dillard) (State School Bond Guaranty Program) 1,020,000 5.625%, 06/15/2020.............................. NR/AA- 1,146,959 Eugene, Oregon (Parks and Open Space) 1,465,000 5.250%, 02/01/2018.............................. Aa2/NR 1,606,387 1,555,000 5.250%, 02/01/2019.............................. Aa2/NR 1,697,049 Gresham, Oregon (Financial Security Assurance Insured) $ 1,155,000 5.375%, 06/01/2018................................ Aaa/NR $ 1,284,914 Jackson County, Oregon School District #4 (Phoenix-Talent) (Financial Security Assurance Insured) 1,490,000 5.500%, 06/15/2013.............................. Aaa/AAA 1,699,360 1,395,000 5.500%, 06/15/2018.............................. Aaa/AAA 1,577,647 Jackson County, Oregon School District #9 (Eagle Point) (State School Bond Guaranty Program) 1,120,000 5.625%, 06/15/2017.............................. Aa3/NR 1,280,104 1,880,000 5.000%, 06/15/2021.............................. Aa3/NR 1,978,399 Jackson County, Oregon School District #549 (Medford)(State School Bond Guaranty Program) 1,750,000 5.000%, 06/15/2012.............................. Aa3/NR 1,970,972 Jackson County, Oregon School District #549C (Financial Security Assurance Insured) 1,000,000 5.300%, 06/01/2008.............................. Aaa/AAA 1,049,030 Jefferson County School District #509J (Financial Guaranty Insurance Corporation Insured) 1,215,000 5.250%, 06/15/2014.............................. Aaa/AAA 1,370,812 1,025,000 5.250%, 06/15/2017.............................. Aaa/AAA 1,137,135 Josephine County, Oregon School District #7 (Grants Pass) (Financial Guaranty Insurance Corporation Insured) 2,700,000 5.700%, 06/01/2013.............................. Aaa/AAA 3,029,508 Josephine County, Oregon School District #7 (Grants Pass) (Financial Security Assurance Insured) 1,000,000 5.250%, 06/15/2013.............................. Aaa/AAA 1,150,090 Josephine County, Oregon Three Rivers School District (Financial Security Assurance Insured) 1,780,000 5.250%, 06/15/2018.............................. Aaa/NR 1,939,862 1,130,000 5.000%, 06/15/2019.............................. Aaa/NR 1,200,704 Lane and Douglas Counties, Oregon School District #45J (South Lane) (State School Bond Guaranty Program) 1,525,000 6.000%, 06/15/2018.............................. NR/AA- 1,808,315 Lane and Douglas County, Oregon School District #97J (Siuslaw) (State School Bond Guaranty Program) 1,000,000 5.400%, 06/15/2019.............................. Aa3/NR 1,101,950 Lane County, Oregon (Financial Security Assurance Insured) $ 2,870,000 5.000%, 06/01/2015.............................. Aaa/NR $ 3,183,261 Lane County, Oregon School District #40 (Creswell) (State School Bond Guaranty Program) 1,430,000 5.375%, 06/15/2020.............................. NR/AA- 1,567,237 Lane County, Oregon School District #52J (Financial Guaranty Insurance Corporation Insured) 750,000 6.400%, 12/01/2009.............................. Aaa/AAA 844,883 Lincoln County, Oregon School District (Financial Guaranty Insurance Corporation Insured) 1,245,000 5.250%, 06/15/2012.............................. Aaa/AAA 1,394,649 Linn-Benton, Oregon Community College District (Financial Guaranty Insurance Corporation Insured) 1,160,000 zero coupon, 06/15/2011......................... Aaa/AAA 912,734 Linn County, Oregon School District #7 (Harrisburg) (State School Bond Guaranty Program) 1,660,000 5.500%, 06/15/2019.............................. NR/AA- 1,851,182 Linn County, Oregon School District #9 (Lebanon) (Financial Guaranty Insurance Corporation Insured) 3,000,000 5.600%, 06/15/2030.............................. Aaa/AAA 3,295,800 Linn County, Oregon School District #9 (Lebanon) (MBIA Corporation Insured) 2,500,000 5.000%, 06/15/2030.............................. Aaa/AAA 2,593,050 Malheur County, Oregon Jail Bonds (MBIA Corporation Insured) 1,345,000 6.300%, 12/01/2012.............................. Aaa/AAA 1,451,295 Metro, Oregon 3,240,000 5.000%, 01/01/2013.............................. Aa1/AA+ 3,525,671 3,000,000 5.250%, 09/01/2014.............................. Aa1/AA+ 3,381,990 Multnomah and Clackamas Counties, Oregon School District #10 (Gresham-Barlow) (Financial Security Assurance Insured) 1,140,000 5.000%, 06/15/2016.............................. Aaa/AAA 1,253,624 1,205,000 5.000%, 06/15/2017.............................. Aaa/AAA 1,307,497 1,500,000 5.500%, 06/15/2018.............................. Aaa/AAA 1,696,395 2,650,000 5.000%, 06/15/2021.............................. Aaa/AAA 2,800,520 Multnomah County School District #7 (Reynolds) (State School Bond Guaranty Program) $ 500,000 5.625%, 06/15/2017.............................. Aa3/AA- $ 571,475 2,375,000 5.125%, 06/15/2019.............................. Aa3/AA- 2,552,769 Multnomah County School District #40 (David Douglas) (Financial Security Assurance Insured) 2,055,000 5.000%, 12/01/2015.............................. Aaa/AAA 2,225,092 1,000,000 5.000%, 12/01/2017.............................. Aaa/AAA 1,067,510 Northern Oregon Correctional (AMBAC Indemnity Corporation Insured) 1,195,000 5.400%, 09/15/2016.............................. Aaa/AAA 1,322,841 Oak Lodge Water District (AMBAC Indemnity Corporation Insured) 215,000 7.300%, 12/01/2005.............................. Aaa/AAA 223,432 215,000 7.300%, 12/01/2006.............................. Aaa/AAA 223,854 215,000 7.400%, 12/01/2007.............................. Aaa/AAA 223,920 Oregon State Department Administrative Services Oregon Opportunity 5,440,000 4.000%, 12/01/2014.............................. Aa3/AA- 5,651,997 State of Oregon 1,975,000 5.250%, 10/15/2013.............................. Aa3/AA- 2,248,202 2,115,000 5.250%, 10/15/2014.............................. Aa3/AA- 2,394,159 State of Oregon Board of Higher Education 820,000 zero coupon, 08/01/2016......................... Aa3/AA- 491,934 500,000 zero coupon, 08/01/2018......................... Aa3/AA- 267,325 540,000 zero coupon, 08/01/2019......................... Aa3/AA- 272,246 1,440,000 5.000%, 08/01/2020.............................. Aa3/AA- 1,546,848 2,560,000 5.500%, 08/01/2021.............................. Aa3/AA- 2,856,883 3,000,000 5.000%, 08/01/2022.............................. Aa3/AA- 3,149,220 1,655,000 5.600%, 08/01/2023.............................. Aa3/AA- 1,877,664 1,500,000 5.600%, 08/01/2023.............................. Aa3/AA- 1,701,810 6,300,000 6.000%, 08/01/2026.............................. Aa3/AA- 7,081,704 State of Oregon Elderly and Disabled Housing 40,000 6.250%, 08/01/2013.............................. Aa3/AA 40,535 State of Oregon Veterans' Welfare 700,000 9.200%, 10/01/2008.............................. Aa3/AA 904,183 890,000 5.200%, 10/01/2018.............................. Aa3/AA 921,284 845,000 5.250%, 10/01/2042.............................. Aa3/AA 882,721 Polk, Marion, and Benton Counties, Oregon School District #13J (Financial Guaranty Insurance Corporation Insured) $ 1,000,000 5.500%, 12/01/2008.............................. Aaa/AAA $ 1,039,930 Portland, Oregon 1,480,000 5.100%, 10/01/2009.............................. Aaa/NR 1,483,004 2,790,000 5.750%, 06/01/2013.............................. Aaa/NR 2,941,162 1,000,000 4.600%, 06/01/2014.............................. Aaa/NR 1,063,820 2,000,000 5.600%, 06/01/2015.............................. Aa2/NR 2,177,700 135,000 5.250%, 06/01/2015.............................. Aa2/NR 140,759 2,975,000 zero coupon, 06/01/2015......................... Aa2/NR 1,906,231 1,120,000 5.125%, 06/01/2018.............................. Aaa/NR 1,223,342 10,480,000 4.350%, 06/01/2023.............................. Aa2/NR 10,385,366 Portland, Oregon Community College District 3,015,000 5.125%, 06/01/2013.............................. Aa2/AA 3,346,801 3,115,000 5.125%, 06/01/2016.............................. Aa2/AA 3,406,003 2,350,000 5.000%, 06/01/2021.............................. Aa2/AA 2,472,435 Portland, Oregon Community College District (Financial Guaranty Insurance Corporation Insured) 1,395,000 5.000%, 06/01/2017.............................. Aaa/AAA 1,490,837 Salem-Keizer Oregon School District #24J (Financial Security Assurance Insured) 1,000,000 4.875%, 06/01/2014.............................. Aaa/AAA 1,075,140 1,605,000 5.000%, 06/15/2015.............................. Aaa/AAA 1,796,701 3,000,000 5.000%, 06/15/2016.............................. Aaa/AAA 3,325,860 Southwestern Oregon Community College District (MBIA Corporation Insured) 1,120,000 6.000%, 06/01/2025.............................. Aaa/AAA 1,326,875 Tillamook County, Oregon School District #9 (Financial Security Assurance Insured) 3,000,000 5.250%, 06/15/2022.............................. Aaa/AAA 3,246,570 Tualatin Hills Park and Recreation District, Oregon (MBIA Corporation Insured) 2,470,000 5.750%, 03/01/2012.............................. Aaa/AAA 2,575,024 2,000,000 5.750%, 03/01/2015.............................. Aaa/AAA 2,084,100 Umatilla County, Oregon (Financial Guaranty Insurance Corporation Insured) $ 2,000,000 5.600%, 10/01/2015 ............................. Aaa/AAA $ 2,198,560 Umatilla County, Oregon School District #8R (Hermiston) (AMBAC Indemnity Corporation Insured) 700,000 6.100%, 12/01/2012 ............................. Aaa/AAA 723,730 Umatilla County, Oregon School District #16R (Pendleton) (Financial Guaranty Insurance Corporation Insured) 1,550,000 5.500%, 07/01/2012 ............................. Aaa/NR 1,807,532 Wasco County, Oregon School District #12 (The Dalles) (Financial Security Assurance Insured) 1,135,000 6.000%, 06/15/2015 ............................. Aaa/AAA 1,345,860 1,400,000 5.500%, 06/15/2017 ............................. Aaa/AAA 1,638,728 1,790,000 5.500%, 06/15/2020 ............................. Aaa/AAA 2,091,293 Washington County, Oregon 1,000,000 5.000%, 06/01/2017 ............................. Aa2/NR 1,075,820 Washington County, Oregon School District #15 (Forest Grove) (Financial Security Assurance Insured) 2,285,000 5.375%, 06/15/2014 ............................. Aaa/NR 2,572,316 1,760,000 5.375%, 06/15/2016 ............................. Aaa/NR 1,966,994 2,000,000 5.000%, 06/15/2021 ............................. Aaa/NR 2,107,220 Washington County, Oregon School District #48J (Beaverton) 1,175,000 5.500%, 06/01/2006 ............................. Aa2/AA- 1,182,790 1,130,000 5.600%, 06/01/2007 ............................. Aa2/AA- 1,137,661 1,000,000 6.150%, 06/01/2008 ............................. Aa2/AA- 1,007,550 1,415,000 5.700%, 06/01/2008 ............................. Aa2/AA- 1,424,693 1,440,000 6.000%, 06/01/2011 ............................. Aa2/AA- 1,450,541 2,000,000 5.125%, 01/01/2015 ............................. Aa2/AA- 2,182,200 1,620,000 5.125%, 01/01/2016 ............................. Aa2/AA- 1,763,532 Washington County, Oregon School District #48J (Beaverton) (Financial Guaranty Insurance Corporation Insured) 2,800,000 5.375%, 06/01/2019 ............................. Aaa/AAA 3,088,596 Washington and Clackamas Counties, School District #23 (Tigard) (MBIA Corporation Insured) $ 4,700,000 5.375%, 06/15/2014 ............................. Aaa/NR $ 5,362,371 2,500,000 5.375%, 06/15/2020 ............................. Aaa/NR 2,761,900 Washington and Clackamas Counties, School District #23J (Tigard) 1,000,000 5.650%, 06/01/2015 ............................. Aa3/NR 1,089,910 Washington, Clackamas, and Yamhill County, Oregon School District #88JT (Sherwood) (Financial Security Assurance Insured) 2,315,000 6.100%, 06/01/2012 ............................. Aaa/AAA 2,449,710 585,000 6.100%, 06/01/2012 ............................. Aaa/AAA 619,041 2,055,000 5.125%, 06/15/2012 ............................. Aaa/NR 2,283,208 Washington, Multnomah and Yamhill County, Oregon School District #1J (Hillsboro) 1,295,000 5.250%, 06/01/2013 ............................. Aa3/NR 1,453,560 Washington and Yamhill, Oregon County School District #58J (Farmington View)(AMBAC Indemnity Corporation Insured) 70,000 6.600%, 11/01/2004 ............................. Aaa/AAA 70,282 80,000 6.600%, 11/01/2005 ............................. Aaa/AAA 80,318 90,000 6.600%, 11/01/2006 ............................. Aaa/AAA 90,364 Yamhill County, Oregon School District #29J (Newberg) (Financial Security Assurance Insured) 2,000,000 5.350%, 06/01/2006 ............................. Aaa/AAA 2,013,240 Yamhill County, Oregon School District #29J (Newberg) (MBIA Corporation Insured) 2,850,000 5.250%, 06/15/2017 ............................. Aaa/NR 3,161,790 3,765,000 5.250%, 06/15/2020 ............................. Aaa/NR 4,112,848 ------------ Total State of Oregon General Obligation Bonds.. 267,326,307 ------------ STATE OF OREGON REVENUE BONDS - 38.6% ------------------------------------------------------ AIRPORT REVENUE BONDS - 0.7% ------------------------------------------------------ Port of Portland, Oregon Airport (AMBAC Indemnity Corporation Insured) 3,000,000 5.500%, 07/01/2024 ............................. Aaa/AAA 3,260,190 ------------ CERTIFICATES OF PARTICIPATION REVENUE BONDS - 4.8% ------------------------------------------------------ Oregon State Department of Administration Services (AMBAC Indemnity Corporation Insured) $ 500,000 5.375%, 05/01/2014 ............................. Aaa/AAA $ 565,875 950,000 5.000%, 11/01/2019 ............................. Aaa/AAA 1,004,511 1,120,000 5.000%, 05/01/2021 ............................. Aaa/AAA 1,186,282 1,500,000 5.800%, 05/01/2024 ............................. Aaa/AAA 1,697,070 3,970,000 6.000%, 05/01/2026 ............................. Aaa/AAA 4,740,220 Oregon State Department of Administrative Services (Financial Security Assurance Insured) 1,300,000 5.500%, 11/01/2012 ............................. Aaa/AAA 1,518,335 1,135,000 5.000%, 05/01/2015 ............................. Aaa/AAA 1,257,955 Oregon State Department of Administration Services (MBIA Corporation Insured) 2,000,000 5.250%, 05/01/2011 ............................. Aaa/AAA 2,288,900 1,530,000 5.375%, 11/01/2016 ............................. Aaa/AAA 1,646,693 4,250,000 5.500%, 11/01/2020 ............................. Aaa/AAA 4,582,435 Washington County, Oregon Educational Services 645,000 5.625%, 06/01/2016 ............................. A1/NR 664,286 Washington County, Oregon Educational Services (MBIA Corporation Insured) 830,000 5.750%, 06/01/2025 ............................. Aaa/AAA 871,616 ------------ Total Certificates of Participation Revenue Bonds.. 22,024,178 ------------ HOSPITAL REVENUE BONDS - 7.4% ------------------------------------------------------ Clackamas County, Oregon Hospital Facilities Authority (Legacy Health System) 2,000,000 5.250%, 02/15/2017 ............................. Aa3/AA 2,115,780 2,980,000 5.250%, 02/15/2018 ............................. Aa3/AA 3,136,361 Clackamas County, Oregon Hospital Facilities Authority (Legacy Health System) (MBIA Corporation Insured) 2,650,000 4.750%, 02/15/2011 ............................. Aaa/AAA 2,890,938 Clackamas County, Oregon Hospital Facilities (Legacy Health System) 4,000,000 5.250%, 05/01/2021 ............................. Aa3/AA 4,209,360 Clackamas County, Oregon Hospital Facilities Authority (Mary's Woods) 3,480,000 6.625%, 05/15/2029 ............................. NR/NR* 3,640,950 Deschutes County, Oregon Hospital Facilities Authority (Cascade Health) $ 2,000,000 5.600%, 01/01/2027.............................. A1/NR $ 2,100,940 3,000,000 5.600%, 01/01/2032.............................. A1/NR 3,147,450 Douglas County, Oregon Hospital Facilities Authority (Catholic Health) (MBIA Corporation Insured) 535,000 5.600%, 11/15/2005.............................. Aaa/AAA 559,669 Medford, Oregon Hospital Authority (Asante Health Systems) (MBIA Corporation Insured) 1,050,000 5.000%, 08/15/2018.............................. Aaa/AAA 1,104,296 State of Oregon Health Housing Educational and Aaa/AAA 4,016,235 Cultural Facilities Authority (Peacehealth) (AMBAC Indemnity Corporation Insured) 2,300,000 5.250%, 11/15/2017.............................. Aaa/AAA 2,537,406 1,850,000 5.000%, 11/15/2026.............................. Aaa/AAA 1,935,507 1,430,000 5.000%, 11/15/2032.............................. Aaa/AAA 1,474,330 Western Lane County, Oregon Hospital Facilities Authority (Sisters of St. Joseph Hospital) (MBIA Corporation Insured) 1,000,000 5.625%, 08/01/2007.............................. Aaa/AAA 1,033,380 3,885,000 5.750%, 08/01/2019.............................. Aaa/AAA 4,016,235 ------------ Total Hospital Revenue Bonds....................... 33,902,602 ------------ HOUSING, EDUCATIONAL, AND CULTURAL REVENUE BONDS - 5.6% ------------------------------------------------------ Clackamas Community College District (MBIA Corporation Insured) 1,865,000 5.700%, 06/01/2016.............................. Aaa/AAA 2,034,659 Multnomah County, Oregon Educational Facility (University of Portland) 1,000,000 6.000%, 04/01/2020.............................. NR/BBB+ 1,083,980 Oregon Health Sciences University (MBIA Corporation Insured) 4,500,000 5.250%, 07/01/2015.............................. Aaa/AAA 4,898,340 13,790,000 zero coupon, 07/01/2021......................... Aaa/AAA 6,211,843 3,000,000 5.250%, 07/01/2022 ............................ Aaa/AAA 3,237,330 Salem, Oregon Educational Facilities (Willamette University) 1,000,000 6.000%, 04/01/2010.............................. A2/NR 1,013,600 State of Oregon Housing and Community Services $ 65,000 5.900%, 07/01/2012.............................. Aa2/NR $ 68,075 305,000 6.700%, 07/01/2013.............................. Aa2/NR 305,265 670,000 6.000%, 07/01/2020.............................. Aa2/NR 707,111 1,510,000 5.400%, 07/01/2027.............................. Aa2/NR 1,556,357 740,000 6.875%, 07/01/2028.............................. Aa2/NR 743,204 State of Oregon Housing and Community Services (MBIA Corporation Insured) 1,500,000 5.450%, 07/01/2024.............................. Aaa/AAA 1,512,195 State of Oregon Housing, Educational and Cultural Facilities Authority (George Fox University) (LOC: Bank of America) 1,000,000 5.700%, 03/01/2017.............................. NR/AA- 1,056,900 State of Oregon Housing Finance Authority 935,000 6.800%, 07/01/2013 ............................. Aa2/A+ 935,767 Total Housing, Educational, and Cultural ------------ Revenue Bonds................................... 25,364,626 ------------ TRANSPORTATION REVENUE BONDS - 5.0% ------------------------------------------------------ Oregon St. Department Transportation Highway Usertax 1,000,000 5.500%, 11/15/2014.............................. Aa1/AA+ 1,158,020 2,000,000 5.500%, 11/15/2016.............................. Aa1/AA+ 2,291,900 3,025,000 5.500%, 11/15/2018.............................. Aa1/AA+ 3,420,882 2,555,000 5.375%, 11/15/2018.............................. Aa1/AA+ 2,833,878 4,545,000 5.125%, 11/15/2026.............................. Aa1/AA+ 4,802,202 State of Oregon Department of Transportation (Light Rail) (MBIA Corporation Insured) 2,000,000 6.000%, 06/01/2005.............................. Aaa/AAA 2,055,740 Tri-County Metropolitan Transportation District 1,440,000 5.750%, 08/01/2016.............................. Aa3/AA+ 1,670,040 1,775,000 5.000%, 09/01/2016.............................. Aa3/AA+ 1,938,797 Tri-County Metropolitan Transportation District (LOC: Morgan Guaranty Trust) 2,500,000 5.400%, 06/01/2019 ............................. NR/AA- 2,625,750 ------------ Total Transportation Revenue Bonds................. 22,797,209 ------------ URBAN RENEWAL REVENUE BONDS - 2.4% ------------------------------------------------------ Portland, Oregon Airport Way Renewal and Redevelopment (AMBAC Indemnity Corporation Insured) $ 1,640,000 6.000%, 06/15/2014.............................. Aaa/NR $ 1,918,636 1,765,000 5.750%, 06/15/2020.............................. Aaa/NR 2,041,275 Portland, Oregon River District Urban Renewal and Redevelopment (AMBAC Indemnity Corporation Insured) 1,420,000 5.000%, 06/15/2016.............................. Aaa/NR 1,561,531 1,915,000 5.000%, 06/15/2020.............................. Aaa/NR 2,050,352 Portland, Oregon Urban Renewal Tax Allocation (AMBAC Indemnity Corporation Insured) (Convention Center) 1,150,000 5.750%, 06/15/2018.............................. Aaa/NR 1,333,529 2,000,000 5.450%, 06/15/2019.............................. Aaa/NR 2,197,500 ------------ Total Urban Renewal Revenue Bonds.................. 11,102,823 ------------ UTILITY REVENUE BONDS - 1.9% ------------------------------------------------------ Emerald Peoples Utility District, Oregon (Financial Security Assurance Insured) 1,455,000 5.250%, 11/01/2022.............................. Aaa/NR 1,579,126 Eugene, Oregon Electric Utility 1,400,000 5.800%, 08/01/2019.............................. A1/AA- 1,435,952 Eugene, Oregon Electric Utility (Financial Security Assurance Insured) 1,060,000 5.250%, 08/01/2014.............................. Aaa/AAA 1,186,840 1,600,000 5.000%, 08/01/2018.............................. Aaa/AAA 1,711,328 Eugene, Oregon Trojan Nuclear Project 1,665,000 5.900%, 09/01/2009.............................. Aaa/AA- 1,670,877 Northern Wasco County, Oregon Public Utility Development (Financial Guaranty Insurance Corporation Insured) 1,000,000 5.625%, 12/01/2022.............................. Aaa/AAA 1,076,080 ------------ Total Utility Revenue Bonds........................ 8,660,203 ------------ WATER AND SEWER REVENUE BONDS - 9.9% ------------------------------------------------------ Bend, Oregon Sewer Revenue (AMBAC Indemnity Corporation Insured) 1,130,000 5.150%, 10/01/2014.............................. Aaa/NR 1,248,435 Klamath Falls Water (Financial Security Assurance Insured) $ 1,575,000 5.500%, 07/01/2016 ............................. Aaa/AAA $ 1,841,758 Klamath Wastewater (AMBAC Indemnity Corporation Insured) 1,545,000 5.650%, 06/01/2020 ............................. Aaa/AAA 1,747,534 Lebanon, Oregon Wastewater (Financial Security Assurance Insured) 1,000,000 5.700%, 03/01/2020 ............................. Aaa/AAA 1,136,410 Portland Sewer System (Financial Guaranty Insurance Corporation Insured) 2,900,000 5.750%, 08/01/2019 ............................. Aaa/AAA 3,345,208 Portland Sewer System (Financial Security Assurance Insured) 2,760,000 5.250%, 06/01/2017 ............................. Aaa/AAA 3,080,436 3,470,000 5.000%, 06/01/2021 ............................. Aaa/AAA 3,698,014 Portland Sewer System (MBIA Corporation Insured) 2,500,000 5.250%, 06/01/2016 ............................. Aaa/AAA 2,678,200 Portland Water System 1,440,000 5.500%, 08/01/2015 ............................. Aa1/NR 1,459,771 7,420,000 5.500%, 08/01/2019 ............................. Aa1/NR 8,335,257 1,235,000 5.500%, 08/01/2020 ............................. Aa1/NR 1,386,596 Salem Oregon Water and Sewer (Financial Security Assurance Insured) 1,000,000 5.375%, 06/01/2015 ............................. Aaa/AAA 1,157,860 1,970,000 5.375%, 06/01/2016 ............................. Aaa/AAA 2,171,708 3,025,000 5.500%, 06/01/2020 ............................. Aaa/AAA 3,387,486 Washington County, Oregon Clean Water Services (Financial Guaranty Insurance Corporation Insured) 995,000 5.000%, 10/01/2013 ............................. Aaa/AAA 1,103,634 3,525,000 5.125%, 10/01/2017 ............................. Aaa/AAA 3,817,364 Washington County Unified Sewer Agency (AMBAC Indemnity Corporation Insured) 2,120,000 5.900%, 10/01/2006 ............................. Aaa/AAA 2,171,580 315,000 5.900%, 10/01/2006 ............................. Aaa/AAA 322,384 750,000 6.125%, 10/01/2012 ............................. Aaa/AAA 769,073 ------------ Total Water and Sewer Revenue Bonds ............... 44,858,708 ------------ OTHER REVENUE BONDS - 0.9% ------------------------------------------------------ Baker County Pollution Control (Ash Grove Cement West Project) (Small Business Administration Insured) $ 355,000 6.200%, 07/01/2004 ............................. Aaa/NR $ 359,203 380,000 6.300%, 07/01/2005 ............................. Aaa/NR 384,590 Multnomah County School District #1J, Special Obligations 1,000,000 5.000%, 03/01/2007 ............................. A1/A 1,014,160 Oregon State Department of Administration Services (Lottery Revenue) (Financial Security Assurance Insured) 2,000,000 5.750%, 04/01/2014 ............................. Aaa/AAA 2,336,140 ------------ Total Other Revenue Bonds ......................... 4,094,093 ------------ Total State of Oregon Revenue Bonds ............ 176,064,632 ------------ U.S. TERRITORIES - 1.3% ------------------------------------------------------ Puerto Rico Municipal Finance Agency (Financial Security Assurance Insured) 500,000 5.250%, 8/01/2016 .............................. Aaa/AAA 558,465 5,000,000 5.250%, 8/01/2020 .............................. Aaa/AAA 5,501,600 ------------ Total U.S. Territory Bonds ..................... 6,060,065 ------------ Total Municipal Bonds (cost $419,929,020**) ....... 98.6% 449,451,004 Other assets less liabilities ..................... 1.4 6,346,488 ------ ------------ Net Assets ........................................ 100.0% $455,797,492 ====== ============
(*) Any security not rated (NR) has been determined by the Investment Sub-Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a rating service. (**) See note 4. PORTFOLIO ABBREVIATIONS: AMBAC - American Municipal Bond Assurance Corp. LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance See accompanying notes to financial statements. TAX-FREE TRUST OF OREGON STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2004 (UNAUDITED) ASSETS Investments at value (cost $419,929,020).................... $449,451,004 Cash ....................................................... 243,755 Interest receivable ........................................ 6,359,222 Receivable for investment securities sold .................. 579,127 Receivable for Trust shares sold ........................... 235,388 Other assets ............................................... 2,172 ------------ Total assets ............................................... 456,870,668 ------------ LIABILITIES Dividends payable .......................................... 448,603 Payable for Trust shares redeemed .......................... 226,070 Distribution fees payable .................................. 164,199 Management fees payable .................................... 155,362 Accrued expenses ........................................... 78,942 ------------ Total liabilities .......................................... 1,073,176 ------------ NET ASSETS .................................................... $455,797,492 ============ Net Assets consist of: Capital Stock - Authorized an unlimited number of shares, par value $.01 per share ................................ $ 411,267 Additional paid-in capital ................................. 424,888,271 Net unrealized appreciation on investments (note 4) ........ 29,521,984 Undistributed net investment income ........................ 611,316 Accumulated net realized gain on investments ............... 364,654 ------------ $455,797,492 ============ CLASS A Net Assets ................................................. $370,899,606 ============ Capital shares outstanding ................................. 33,461,642 ============ Net asset value and redemption price per share ............. $ 11.08 ============ Offering price per share (100/96 of $11.08 adjusted to nearest cent) ........................................ $ 11.54 ============ CLASS C Net Assets ................................................. $ 44,517,299 ============ Capital shares outstanding ................................. 4,019,711 ============ Net asset value and offering price per share ............... $ 11.07 ============ Redemption price per share (* a charge of 1% is imposed on the redemption proceeds of the shares, or on the original price, whichever is lower, if redeemed during the first 12 months after purchase) .............. $ 11.07* ============ CLASS Y Net Assets ................................................. $ 40,380,587 ============ Capital shares outstanding ................................. 3,645,384 ============ Net asset value, offering and redemption price per share ... $ 11.08 ============ See accompanying notes to financial statements. TAX-FREE TRUST OF OREGON STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED) INVESTMENT INCOME: Interest income .......................................... $10,493,938 Management fees (note 3) ................................. $ 892,017 Distribution and service fees (note 3) ................... 492,512 Transfer and shareholder servicing agent fees ............ 126,293 Trustees' fees and expenses (note 8) ..................... 67,883 Shareholders' reports and proxy statements ............... 51,530 Legal fees ............................................... 41,719 Custodian fees ........................................... 16,753 Registration fees and dues ............................... 14,213 Auditing and tax fees .................................... 13,311 Insurance ................................................ 10,996 Miscellaneous ............................................ 22,734 ----------- 1,749,961 Expenses paid indirectly (note 6) ........................ (8,033) ----------- Net expenses ............................................. 1,741,928 ----------- Net investment income .................................... 8,752,010 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from securities transactions..... 367,326 Change in unrealized appreciation on investments ......... 2,144,198 ----------- Net realized and unrealized gain (loss) on investments.... 2,511,524 ----------- Net change in net assets resulting from operations ....... $11,263,534 ===========
See accompanying notes to financial statements. TAX-FREE TRUST OF OREGON STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2003 ---------------- ------------------ OPERATIONS: Net investment income ..................................... $ 8,752,010 $ 16,966,997 Net realized gain (loss) from securities transactions ..... 367,326 811,685 Change in unrealized appreciation on investments .......... 2,144,198 (2,884,993) ------------ ------------ Change in net assets resulting from operations ......... 11,263,534 14,893,689 ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS (NOTE 10): Class A Shares: Net investment income ..................................... (7,240,862) (14,363,419) Net realized gain on investments .......................... (664,014) (695,373) Class C Shares: Net investment income ..................................... (686,235) (1,129,376) Net realized gain on investments .......................... (79,319) (59,624) Class Y Shares: Net investment income ..................................... (785,118) (1,405,437) Net realized gain on investments .......................... (68,645) (65,668) ------------ ------------ Change in net assets from distributions ................ (9,524,193) (17,718,897) ------------ ------------ CAPITAL SHARE TRANSACTIONS (NOTE 7): Proceeds from shares sold ................................. 34,510,101 83,776,003 Reinvested dividends and distributions .................... 6,197,788 11,642,913 Cost of shares redeemed ................................... (28,147,608) (53,577,493) ------------ ------------ Change in net assets from capital share transactions ... 12,560,281 41,841,423 ------------ ------------ Change in net assets ................................... 14,299,622 39,016,215 NET ASSETS: Beginning of period ....................................... 441,497,870 402,481,655 ------------ ------------ End of period* ............................................ $455,797,492 $441,497,870 ============ ============ * Includes undistributed net investment income of:......... $ 611,316 $ 571,521 ============ ============
See accompanying notes to financial statements. TAX-FREE TRUST OF OREGON NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. ORGANIZATION Tax-Free Trust of Oregon (the "Trust") is a separate portfolio of The Cascades Trust. The Cascades Trust (the "Business Trust") is an open-end investment company, which was organized on October 17, 1985, as a Massachusetts business trust and is authorized to issue an unlimited number of shares. The Trust is a non-diversified portfolio which commenced operations on June 16, 1986 and until April 5, 1996, offered only one class of shares. On that date, the Trust began offering two additional classes of shares, Class C and Class Y shares. All shares outstanding prior to that date were designated as Class A shares and are sold with a front-payment sales charge and bear an annual distribution fee. Class C shares are sold with a level-payment sales charge with no payment at time of purchase but level service and distribution fees from date of purchase through a period of six years thereafter. A contingent deferred sales charge of 1 % is assessed to any Class C shareholder who redeems shares of this Class within one year from the date of purchase. Class C Shares, together with a pro-rata portion of all Class C Shares acquired through reinvestment of dividends and other distributions paid in additional Class C Shares, automatically convert to Class A Shares after 6 years. The Class Y shares are only offered to institutions acting for an investor in a fiduciary, advisory, agency, custodian or similar capacity and are not offered directly to retail investors. Class Y shares are sold at net asset value without any sales charge, redemption fees, contingent deferred sales charge or distribution or service fees. On January 31, 1998 the Trust established Class I shares, which are offered and sold only through financial intermediaries and are not offered directly to retail investors. As of the report date, there were no Class I shares outstanding. All classes of shares represent interests in the same portfolio of investments and are identical as to rights and privileges but differ with respect to the effect of sales charges, the distribution and/or service fees borne by each class, expenses specific to each class, voting rights on matters affecting a single class and the exchange privileges of each class. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America for investment companies. a) PORTFOLIO VALUATION: Municipal securities which have remaining maturities of more than 60 days are valued each business day based upon information provided by a nationally prominent independent pricing service and periodically verified through other pricing services; in the case of securities for which market quotations are readily available, securities are valued at the mean of bid and asked quotations and, in the case of other securities, at fair value determined under procedures established by and under the general supervision of the Board of Trustees. Securities which mature in 60 days or less are valued at amortized cost if their term to maturity at purchase is 60 days or less, or by amortizing their unrealized appreciation or depreciation on the 61st day prior to maturity, if their term to maturity at purchase exceeds 60 days. b) SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME: Securities transactions are recorded on the trade date. Realized gains and losses from securities transactions are reported on the identified cost basis. Interest income is recorded daily on the accrual basis and is adjusted for amortization of premium and accretion of original issue and market discount. c) FEDERAL INCOME TAXES: It is the policy of the Trust to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code applicable to certain investment companies. The Trust intends to make distributions of income and securities profits sufficient to relieve it from all, or substantially all, Federal income and excise taxes. d) ALLOCATION OF EXPENSES: Expenses, other than class-specific expenses, are allocated daily to each class of shares based on the relative net assets of each class. Class-specific expenses, which include distribution and service fees and any other items that are specifically attributed to a particular class, are charged directly to such class. e) USE OF ESTIMATES: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 3. FEES AND RELATED PARTY TRANSACTIONS a) MANAGEMENT ARRANGEMENTS: Effective January 1, 2004, Aquila Management Corporation, founder of the Trust, assigned its Advisory and Administration Agreement and Sub-Advisory Agreement to its wholly-owned subsidiary, Aquila Investment Management LLC (the "Manager"), which will continue the management of the Trust. The transfer was made for reasons of corporate and tax planning and will have no effect on the management of the Trust or the fees being paid. The portfolio management of the Trust has been delegated to a sub-adviser as described below. Under the Advisory and Administrative Agreement, the Manager provides all administrative services to the Trust, other than those relating to the day-to-day portfolio management. The Manager's services include providing the office of the Trust and all related services as well as overseeing the activities of the sub-adviser and all the various support organizations to the Trust such as the shareholder servicing agent, custodian, legal counsel, auditors and distributor and additionally maintaining the Trust's accounting books and records. For its services, the Manager is entitled to receive a fee which is payable monthly and computed as of the close of business each day at the annual rate of 0.40% on the Trust's net assets. U.S. Bancorp Asset Management, Inc. (the "Sub-Adviser"), serves as the Investment Sub-Adviser for the Trust 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 Trust, the investment program of the Trust and the composition of its portfolio, arranges for the purchases and sales of portfolio securities, and provides for daily pricing of the Trust's portfolio. For its services, the Sub-Adviser is entitled to receive a fee from the Manager which is payable monthly and computed as of the close of business each day at the annual rate of 0.18% on the Trust's net assets. Specific details as to the nature and extent of the services provided by the Manager and the Sub-Adviser are more fully defined in the Trust's Prospectus and Statement of Additional Information. b) DISTRIBUTION AND SERVICE FEES: The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 (the "Rule") under the Investment Company Act of 1940. Under one part of the Plan, with respect to Class A Shares, the Trust is authorized to make service fee payments to broker-dealers or others ("Qualified Recipients") selected by Aquila Distributors, Inc. (the "Distributor"), including, but not limited to, any principal underwriter of the Trust, 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 Trust's shares or servicing of shareholder accounts. The Trust makes payment of this service fee at the annual rate of 0.15% of the Trust's average net assets represented by Class A Shares. For the six months ended March 31, 2004, service fees on Class A Shares amounted to $273,043, of which the Distributor retained $11,279. Under another part of the Plan, the Trust 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 Trust's Class C shares or servicing of shareholder accounts. These payments are made at the annual rate of 0.75% of the Trust's net assets represented by Class C Shares and for the six months ended March 31, 2004, amounted to $164,602. In addition, under a Shareholder Services Plan, the Trust is authorized to make service fee payments with respect to Class C Shares to Qualified Recipients for providing personal services and/or maintenance of shareholder accounts. These payments are made at the annual rate of 0.25% of the Trust's net assets represented by Class C Shares and for the six months ended March 31, 2004, amounted to $54,867. The total of these payments made with respect to Class C Shares amounted to $219,469, of which the Distributor retained $30,646. Specific details about the Plans are more fully defined in the Trust's Prospectus and Statement of Additional Information. Under a Distribution Agreement, the Distributor serves as the exclusive distributor of the Trust's shares. Through agreements between the Distributor and various broker-dealer firms ("dealers"), the Trust's shares are sold primarily through the facilities of these dealers having offices within Oregon, with the bulk of sales commissions inuring to such dealers. For the six months ended March 31, 2004, total commissions on sales of Class A Shares amounted to $419,406 of which the Distributor received $76,511. c) OTHER RELATED PARTY TRANSACTIONS For the six months ended March 31, 2004 the Trust incurred $40,754 of legal fees allocable to Hollyer Brady Smith & Hines LLP, counsel to the Trust for legal services in conjunction with the Trust's ongoing operations. The Secretary of the Trust is a Partner of Hollyer Brady Smith & Hines LLP. 4. PURCHASES AND SALES OF SECURITIES During the six months ended March 31, 2004, purchases of securities and proceeds from the sales of securities aggregated $34,500,925 and $17,627,820, respectively. At March 31, 2004, aggregate gross unrealized appreciation for all securities in which there is an excess of market value over tax cost amounted to $30,051,643, and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over market value amounted to $119,129 for a net unrealized appreciation of $29,932,514. The tax cost of the Trust's securities at March 31, 2004 equals $419,518,490. 5. PORTFOLIO ORIENTATION Since the Trust 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. Two such developments, 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 issuer's to pay interest and principal on their obligations. 6. EXPENSES The Trust has negotiated an expense offset arrangement with its custodian, wherein it receives credit toward the reduction of custodian fees and other Trust expenses whenever there are uninvested cash balances. The Statement of Operations reflects the total expenses before any offset, the amount of offset and the net expenses. It is the general intention of the Trust to invest, to the extent practicable, some or all of cash balances in income-producing assets rather than leave cash on deposit. 7. CAPITAL SHARE TRANSACTIONS Transactions in Capital Shares of the Trust were as follows:
Six Months Ended March 31, 2004 Year Ended (Unaudited) September 30, 2003 ------------------------- ------------------------- Shares Amount Shares Amount ---------- ------------ ---------- ------------ CLASS A SHARES: Proceeds from shares sold ..... 2,020,360 $ 22,370,160 4,290,731 $ 47,160,565 Reinvested dividends and distributions .............. 460,630 5,095,793 881,039 9,639,480 Cost of shares redeemed ....... (1,680,013) (18,547,216) (3,581,928) (39,235,022) ---------- ------------ ---------- ------------ Net change ................. 800,977 8,918,737 1,589,842 17,565,023 ---------- ------------ ---------- ------------ CLASS C SHARES: Proceeds from shares sold ..... 452,032 5,001,108 2,166,804 23,820,080 Reinvested dividends and distributions .............. 47,343 523,208 71,346 780,271 Cost of shares redeemed ....... (456,694) (5,041,856) (588,665) (6,451,056) ---------- ------------ ---------- ------------ Net change ................. 42,681 482,460 1,649,485 18,149,295 ---------- ------------ ---------- ------------ CLASS Y SHARES: Proceeds from shares sold ..... 644,863 7,138,833 1,167,839 12,795,358 Reinvested dividends and distributions .............. 52,488 578,787 111,651 1,223,162 Cost of shares redeemed ....... (414,176) (4,558,536) (722,204) (7,891,415) ---------- ------------ ---------- ------------ Net change ................. 283,175 3,159,084 557,286 6,127,105 ---------- ------------ ---------- ------------ Total transactions in Trust shares ........................ 1,126,833 $ 12,560,281 3,796,613 $ 41,841,423 ========== ============ ========== ============
8. TRUSTEES' FEES AND EXPENSES During the previous fiscal year ended September 30, 2003 there were eleven Trustees, two of whom are affiliated with the Manager and are not paid any trustee fees. Each Trustee's fees paid during the previous year averaged approximately $8,050 for carrying out responsibilities and attendance at regularly scheduled Board Meetings. If additional or special meetings are scheduled for the Trust, separate meeting fees are paid for each such meeting to those Trustees in attendance. The Trust also covers Trustees' expenses such as travel, accommodations, and meals incurred in connection with attendance at regularly scheduled or special Board Meetings and outreach meetings of Shareholders. For the previous fiscal year ended September 30, 2003 such meeting-related expenses averaged approximately $5,175 per Trustee. 9. SECURITIES TRADED ON A WHEN-ISSUED BASIS The Trust may purchase or sell securities on a when-issued basis. When-issued transactions arise when securities are purchased or sold by the Trust 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 Trust at the time of entering into the transaction. Beginning on the date the Trust enters into a when-issued transaction, cash or other liquid securities are segregated in an amount equal to or greater than the value of the when-issued transaction. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities. 10. DISTRIBUTIONS The Trust declares dividends daily from net investment income and makes payments monthly in additional shares at the net asset value per share, in cash, or in a combination of both, at the shareholder's option. Net realized capital gains, if any, are distributed annually and are taxable. The Trust intends to maintain, to the maximum extent possible, the tax-exempt status of interest payments received from portfolio municipal securities in order to allow dividends paid to shareholders from net investment income to be exempt from regular Federal and State of Oregon income taxes. However, due to differences between financial statement reporting and Federal income tax reporting requirements, distributions made by the Trust may not be the same as the Trust's net investment income, and/or net realized securities gains. Further, a portion of the dividends may, under some circumstances, be subject to taxes at ordinary income and/or capital gain rates. The tax character of distributions during the fiscal years ended September 30, 2003 and 2002 is as follows: Distributions from Year Ended September 30, -------------------------- 2003 2002 ----------- ----------- Net tax-exempt income $16,878,780 $15,633,548 Ordinary income 28,432 19,956 Capital gain 811,685 820,660 ----------- ----------- $17,718,897 $16,474,164 =========== =========== As of September 30, 2003, the components of distributable earnings on a tax basis were as follows: Accumulated net realized gain $ 811,685 Unrealized appreciation 27,747,810 Undistributed tax-exempt income 522,741 ----------- $29,082,236 =========== The difference between book basis and tax basis unrealized appreciation is attributable primarily to wash sales and premium/discount adjustments. TAX-FREE TRUST OF OREGON FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Class A --------------------------------------------------------- Six Months Ended Year Ended September 30, 3/31/04 ------------------------------------------- (Unaudited) 2003 2002 2001 2000 1999 ----------- ------ ------ ------ ------ ------ Net asset value, beginning of period ................. $11.04 $11.12 $10.72 $10.29 $10.27 $10.86 ------ ------ ------ ------ ------ ------ Income (loss) from investment operations: Net investment income + ........................... 0.22 0.45 0.48 0.49 0.50 0.50 Net gain (loss) on securities (both realized and unrealized) ................................ 0.06 (0.06) 0.41 0.44 0.02 (0.56) ------ ------ ------ ------ ------ ------ Total from investment operations .................. 0.28 0.39 0.89 0.93 0.52 (0.06) ------ ------ ------ ------ ------ ------ Less distributions (note 10): Dividends from net investment income .............. (0.22) (0.45) (0.47) (0.49) (0.50) (0.51) Distributions from capital gains .................. (0.02) (0.02) (0.02) (0.01) -- (0.02) ------ ------ ------ ------ ------ ------ Total distributions ............................... (0.24) (0.47) (0.49) (0.50) (0.50) (0.53) ------ ------ ------ ------ ------ ------ Net asset value, end of period ....................... $11.08 $11.04 $11.12 $10.72 $10.29 $10.27 ====== ====== ====== ====== ====== ====== Total return (not reflecting sales charge) ........... 2.56%* 3.65% 8.59% 9.18% 5.26% (0.62)% Ratios/supplemental data Net assets, end of period (in millions) ........... $371 $361 $345 $309 $289 $309 Ratio of expenses to average net assets ........... 0.71%** 0.71% 0.71% 0.72% 0.71% 0.71% Ratio of net investment income to average net assets ......................................... 3.99%** 4.11% 4.45% 4.62% 4.93% 4.70% Portfolio turnover rate ........................... 4%* 12% 11% 17% 20% 16% The expense ratios after giving effect to the expense offset for uninvested cash balances were: Ratio of expenses to average net assets ........... 0.71%** 0.70% 0.69% 0.70% 0.70% 0.68%
- ---------- + Per share amounts have been calculated using the monthly average shares method. * Not annualized. ** Annualized. See accompanying notes to financial statements. TAX-FREE TRUST OF OREGON FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Class C --------------------------------------------------------- Six Months Ended Year Ended September 30, 3/31/04 ------------------------------------------- (Unaudited) 2003 2002 2001 2000 1999 ----------- ------ ------ ------ ------ ------ Net asset value, beginning of period ................. $11.03 $11.11 $10.71 $10.28 $10.27 $10.85 ------ ------ ------ ------ ------ ------ Income (loss) from investment operations: Net investment income + ........................... 0.17 0.36 0.38 0.39 0.41 0.41 Net gain (loss) on securities (both realized and unrealized)..................................... 0.06 (0.06) 0.42 0.45 0.02 (0.55) ------ ------ ------ ------ ------ ------ Total from investment operations .................. 0.23 0.30 0.80 0.84 0.43 (0.14) ------ ------ ------ ------ ------ ------ Less distributions (note 10): Dividends from net investment income............... (0.17) (0.36) (0.38) (0.40) (0.42) (0.42) Distributions from capital gains .................. (0.02) (0.02) (0.02) (0.01) -- (0.02) ------ ------ ------ ------ ------ ------ Total distributions ............................... (0.19) (0.38) (0.40) (0.41) (0.42) (0.44) ------ ------ ------ ------ ------ ------ Net asset value, end of period ....................... $11.07 $11.03 $11.11 $10.71 $10.28 $10.27 ====== ====== ====== ====== ====== ====== Total return (not reflecting sales charge) ........... 2.13%* 2.77% 7.67% 8.26% 4.27% (1.38)% Ratios/supplemental data Net assets, end of period (in millions)............ $44.5 $43.9 $25.9 $12.7 $5.8 $3.0 Ratio of expenses to average net assets............ 1.56%** 1.55% 1.55% 1.56% 1.55% 1.56% Ratio of net investment income to average net assets ......................................... 3.14%** 3.22% 3.56% 3.70% 4.03% 3.84% Portfolio turnover rate............................ 4%* 12% 11% 17% 20% 16% The expense ratios after giving effect to the expense offset for uninvested cash balances were: Ratio of expenses to average net assets............ 1.56%** 1.54% 1.54% 1.54% 1.54% 1.53%
Class Y -------------------------------------------------------- Six Months Ended Year Ended September 30, 3/31/04 ------------------------------------------ (Unaudited) 2003 2002 2001 2000 1999 ----------- ------ ------ ------ ------ ------ Net asset value, beginning of period ................. $11.03 $11.11 $10.72 $10.28 $10.27 $10.85 ------ ------ ------ ------ ------ ------ Income (loss) from investment operations: Net investment income + ........................... 0.23 0.47 0.49 0.50 0.52 0.52 Net gain (loss) on securities (both realized and unrealized)..................................... 0.07 (0.06) 0.41 0.45 0.01 (0.56) ------ ------ ------ ------ ------ ------ Total from investment operations .................. 0.30 0.41 0.90 0.95 0.53 (0.04) ------ ------ ------ ------ ------ ------ Less distributions (note 10): Dividends from net investment income............... (0.23) (0.47) (0.49) (0.50) (0.52) (0.52) Distributions from capital gains .................. (0.02) (0.02) (0.02) (0.01) -- (0.02) ------ ------ ------ ------ ------ ------ Total distributions ............................... (0.25) (0.49) (0.51) (0.51) (0.52) (0.54) ------ ------ ------ ------ ------ ------ Net asset value, end of period ....................... $11.08 $11.03 $11.11 $10.72 $10.28 $10.27 ====== ====== ====== ====== ====== ====== Total return (not reflecting sales charge) ........... 2.73%* 3.80% 8.65% 9.45% 5.32% (0.39)% Ratios/supplemental data Net assets, end of period (in millions)............ $40.4 $37.1 $31.2 $23.8 $20.5 $17.0 Ratio of expenses to average net assets............ 0.56%** 0.56% 0.56% 0.57% 0.56% 0.56% Ratio of net investment income to average net assets ......................................... 4.14%** 4.26% 4.59% 4.76% 5.08% 4.86% Portfolio turnover rate............................ 4%* 12% 11% 17% 20% 16% The expense ratios after giving effect to the expense offset for uninvested cash balances were: Ratio of expenses to average net assets............ 0.56%** 0.55% 0.54% 0.55% 0.54% 0.53%
- ---------- + Per share amounts have been calculated using the monthly average shares method. * Not annualized. ** Annualized. See accompanying notes to financial statements. INFORMATION AVAILABLE (UNAUDITED) Much of the information that the funds in the Aquila(SM) Group of Funds produce is automatically sent to you and all other shareholders. Specifically, you are routinely sent the entire list of portfolio securities of your fund twice a year in the semi-annual and annual reports you receive. You should know, however, that we prepare, and have available, portfolio listings at the end of each quarter. Whenever you may be interested in seeing a listing of your Trust's portfolio other than in your shareholder reports, please check our website (www.aquilafunds.com) or call us at 1-800-437-1020. FOUNDER AQUILA MANAGEMENT CORPORATION MANAGER AQUILA INVESTMENT MANAGEMENT LLC 380 Madison Avenue, Suite 2300 New York, New York 10017 INVESTMENT SUB-ADVISER U.S. BANCORP ASSET MANAGEMENT, INC. 555 S.W. Oak Street U.S. Bancorp Tower Portland, Oregon 97204 BOARD OF TRUSTEES Lacy B. Herrmann, Chairman Gary C. Cornia James A. Gardner Diana P. Herrmann Edmund P. Jensen Raymond H. Lung John W. Mitchell Patricia L. Moss Ralph R. Shaw Nancy Wilgenbusch OFFICERS Diana P. Herrmann, Vice Chair and President James M. McCullough, Senior Vice President Sally J. Church, Vice President Christine L. Neimeth, Vice President Joseph P. DiMaggio, Chief Financial Officer and Treasurer Edward M.W. Hines, Secretary DISTRIBUTOR AQUILA DISTRIBUTORS, INC. 380 Madison Avenue, Suite 2300 New York, New York 10017 TRANSFER AND SHAREHOLDER SERVICING AGENT PFPC INC. 760 Moore Road King of Prussia, Pennsylvania 19406 CUSTODIAN BANK ONE TRUST COMPANY, N.A. 1111 Polaris Parkway Columbus, Ohio 43240 INDEPENDENT AUDITORS KPMG LLP 757 Third Avenue New York, New York 1001 7 Further information is contained in the Prospectus, which must precede or accompany this report. SEMI-ANNUAL REPORT MARCH 31, 2004 TAX-FREE TRUST OF OREGON A TAX-FREE INCOME INVESTMENT [Logo of Tax-Free Trust of Oregon: a square containing two trees in front of mountains] ONE OF THE AQUILA(SM) GROUP OF FUNDS [Logo of the Aquila Group of Funds: an eagle's head] ITEM 2. CODE OF ETHICS. Not applicable ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) as of a date within 90 days of the fling of this report, the registrant's chief financial and executive officers have concluded that the disclosure controls and procedures of the registrant are appropriately designed to ensure that information required to be disclosed in the registrant's reports that are filed under the Securities Exchange Act of 1934 are accumulated and communicated to registrant's management, including its principal executive officer(s) and principal financial officer(s), to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the Securities and Exchange Commission. (b) There have been no significant changes in registrant's internal controls or in other factors that could significantly affect registrant's internal controls subsequent to the date of the most recent evaluation, including no significant deficiencies or material weaknesses that required corrective action. ITEM 10. EXHIBITS. (a)(2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. (b) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TAX-FREE TRUST OF OREGON By: /s/ Lacy B. Herrmann - --------------------------------- Chairman of the Board June 7, 2004 By: /s/ Diana P. Herrmann - --------------------------------- Vice Chair, Trustee and President June 7, 2004 By: /s/ Joseph P. DiMaggio - ----------------------------------- Chief Financial Officer and Treasurer June 7, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Lacy B. Herrmann - --------------------------------- Lacy B. Herrmann Chairman of the Board June 7, 2004 By: /s/ Diana P. Herrmann - --------------------------------- Diana P. Herrmann Vice Chair, Trustee and President June 7, 2004 By: /s/ Joseph P. DiMaggio - ----------------------------------- Joseph P. DiMaggio Chief Financial Officer and Treasurer June 7, 2004 TAX-FREE TRUST OF OREGON EXHIBIT INDEX (a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. (b) Certification of chief executive officer and chief financial officer as required by Rule 30a-2(b) of the Investment Company Act of 1940. EX-99.CERT 2 tfto306cert.txt SECTION 306 CERTIFICATION EX-99.CERT CERTIFICATIONS I, Lacy B. Herrmann, certify that: 1. I have reviewed this report on Form N-CSR of Tax-Free Trust of Oregon; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report ("Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: June 7, 2004 /s/ Lacy B. Herrmann - ---------------------- Title: Chairman of the Board I, Diana P. Herrmann, certify that: 1. I have reviewed this report on Form N-CSR of Tax-Free Trust of Oregon; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 2. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report ("Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: June 7, 2004 /s/ Diana P. Herrmann - ---------------------- Title: Vice Chair, Trustee and President I, Joseph P. DiMaggio, certify that: 1. I have reviewed this report on Form N-CSR of Tax-Free Trust of Oregon; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 2. Based on my knowledge, the financial statements, other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report ("Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: June 7, 2004 /s/ Joseph P. DiMaggio - ------------------------ Title: Chief Financial Officer and Treasurer EX-99.906 CERT 3 tfto906cert.txt SECTION 906 CERTIFICATION CERTIFICATION Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002 (subsections and (b) of section 1350, chapter 63 of title 18,United States Code), each of the undersigned officers of Tax-Free Trust of Oregon, do hereby certify to such officer's knowledge, that: The report on Form N-CSR of Tax-Free Trust of Oregon for the period ended March 31, 2004 (the "Form N-CSR")fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Tax-Free Trust of Oregon. Dated: June 7, 2004 /s/ Lacy B. Herrmann --------------------- Lacy B. Herrmann Chairman of the Board Tax-Free Trust of Oregon Dated: June 7, 2004 /s/ Diana P. Herrmann ---------------------- Vice Chair, Trustee and President Tax-Free Trust of Oregon Dated: June 7, 2004 /s/ Joseph P. DiMaggio ----------------------- Chief Financial Officer and Treasurer Tax-Free Trust of Oregon A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Tax-Free Trust of Oregon and will be retained by Tax-Free Trust of Oregon and furnished to the Securities and Exchange Commission or its staff upon request. This certification is being furnished solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Report or as a separate disclosure document. -----END PRIVACY-ENHANCED MESSAGE-----