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: 811-05009
COLORADO BONDSHARES A TAX-EXEMPT FUND
(Exact name of registrant as specified in its charter)
1200 17TH STREET, SUITE 850
DENVER, COLORADO 80202-5808
(Address of principal executive offices) (Zip code)
FRED R. KELLY, JR.
1200 17TH STREET, SUITE 850
DENVER, COLORADO 80202-5808
(Name and address of agent for service)
Registrants telephone number, including area code: 303-572-6990
Date of fiscal year end: 09/30
Date of reporting period: 03/31/2023
ITEM 1. REPORT TO STOCKHOLDERS.
May 26, 2023
Dear Shareholders:
Attached are the operating results of Colorado BondShares for the semi-annual period ending March 31, 2023. Big picture, the size of the fund has grown, dividends have notably increased and the price of our shares has partially recovered from the downturn in 2022 caused by the Federal Reserve rate hikes. To add insult to injury though, many of our shareholders have made us aware of questionable practices by the brokerage community. They have received communications from brokers encouraging (or demanding?) that they sell their shares. There are various justifications given for making such a move. We suspect that many of those reasons are more commission or fee driven than anything else. Unfortunately, these tactics are most effective and damaging to the small investor. It physically makes me sick to my stomach to see some of our valued shareholders unnecessarily locking in losses based on the advice of someone who has not done his homework and has a personal agenda which may not be in the best interests of the client. We know they have not done their homework because they have not asked us a single question. Our mantra is the deeper you dig, the better we look. The brokers we are talking about didnt even scratch the surface, perhaps for obvious reasons.
Many times, I later hear from those poor souls that got victimized expressing their regret for selling near the low. Remember, all the money left on the table by the ones that leave, ultimately goes to the ones who stay. That said, if you need the money, thats a completely different story. One thing we offer besides relatively high income is liquidity.
The suspect brokers often recommend switching from our fund into alternative investment products which typically underperform but generate large fees, such as annuities or other bond funds. There is an old adage in our industry stating that there are but three motivators in investing: Greed, Fear and Greed. Do not let those motivations drive your decisions and do not allow yourselves to be bullied into doing something you do not want to do. Be assured that those firms cannot make you sell your shares, you always have the option of investing direct with the fund and if this is your choice, we will try to make the process as painless as possible. Bad times bring out bad actors and now is no exception.
On a more positive note, it appears that we may be getting near the peak of rate increases and the deadlock in Congress over raising the debt ceiling appears to be ending. While there are still ample concerns above inflation, rate increases and recession it may soon be the bondholders day again to shine. The worse things look in the general economy, the better bonds usually do.
Thank you for your support and continued confidence during the challenging times facing our beloved country. It is still the greatest place in the world to live. God bless America!
Sincerely,
Fred R. Kelly, Jr.
Portfolio Manager
Officers and Trustees
George N. Donnelly, Chairman of the Board of Trustees, Interim President, Secretary, Treasurer and Trustee
Bruce G. Ely, Trustee
James R. Madden, Trustee
Fred R. Kelly, Jr., Portfolio Manager
Investment Adviser
Freedom Funds Management Company
Transfer, Shareholder Servicing, and Dividend Disbursing Agent
Freedom Funds Management Company
Distributor
Colorado Financial Service Corporation
Custodian of Portfolio Securities
UMB Bank, N.A.
Independent Registered Public Accounting Firm
Plante & Moran, PLLC
Special Legal Counsel
Kutak Rock LLP
This report is submitted for the general information of the shareholders of Colorado BondShares A Tax-Exempt Fund. This report must be preceded or accompanied by a Prospectus of the Fund. The prospectus contains information concerning the investment policies and expenses of the portfolio in addition to other pertinent information. Shares of Colorado BondShares A Tax-Exempt Fund are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.
Officers and Trustees of the Fund (unaudited)
The following tables list the trustees and officers of the Fund, together with their address, age, positions held with the Fund, the term of each office held and the length of time served in each office, principal business occupations during the past five years and other directorships, if any, held by each trustee and officer. Each trustee and officer has served in that capacity for the Fund continuously since originally elected or appointed. The Board of Trustees supervises the business activities of the Fund. Each trustee serves as a trustee until termination of the Fund unless the trustee dies, resigns, retires, or is removed. The Statement of Additional Information of the Fund includes additional information about Fund trustees and is available, without charge, upon request. Shareholders may call (800) 572-0069 to request the Statement of Additional Information.
Name, Address and Age |
Position held with |
Principal Occupation |
Other Directorships | |||
Non-Interested Trustees | ||||||
Bruce G. Ely 1200 17th Street, Suite 850 Denver CO 80202 Age: 72 |
Trustee since July 2002 | Mr. Ely was a Regional Director for Cutwater Asset Management, a wholly owned subsidiary of MBIA, Inc., until his retirement in September 2013. | None | |||
James R. Madden 1200 17th Street, Suite 850 Denver CO 80202 Age: 79 |
Trustee since September 2004 | Mr. Madden has owned Madden Enterprises, a real estate company that owns and leases commercial buildings and real estate, for the past thirty years. He is also a stockholder and director of The Community Bank in western Kansas. He has been a bank director for 25 years. | None | |||
Interested Trustees* | ||||||
George N. Donnelly 1200 17th Street, Suite 850 Denver CO 80202 Age: 76 |
Chairman of the Board of Trustees, Trustee since inception of the Fund in 1987 and Interim President, Secretary and Treasurer of the Fund since September 26, 2008 | Mr. Donnelly was a Senior Regional Vice President for Phoenix Life Insurance Company until his retirement in January 2010. | None |
*George N. Donnelly is an interested person of the Fund as defined in the Investment Company Act of 1940 (the 1940 Act) by virtue of his position as both an officer and a trustee of the Fund as described in the table above. None of the trustees nor the officers of the Fund have any position with the Investment Adviser, the principal underwriter of the Fund, the distribution agent of the Fund, the service agent of the Fund or the custodian of the Fund, or any affiliates thereof. There is no family relationship between any officers and trustees of the Fund.
1
FUND EXPENSES (unaudited)
The following examples are intended to help you understand the ongoing costs (in dollars) of investing in the Fund and compare these costs with those of other mutual funds. The examples (actual and hypothetical 5% return) are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
As a shareholder of Colorado BondShares A Tax-Exempt Fund (the Fund) you can incur two types of costs:
| Sales charges (front loads) on fund purchases and |
| Ongoing fund costs, including management fees, administrative services, and other fund expenses. All mutual funds have operating expenses. Operating expenses, which are deducted from the Funds gross income, directly reduce the investment return of the Fund. |
Actual Fund Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing cost of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.
Six Months Ended March 31, 2023
Colorado BondShares A Tax- Exempt Fund |
Beginning Account Value 10/01/22 |
Ending Account Value 03/31/23 |
Expenses Paid During Period(1) | ||||||||||||
Based on Actual Fund Return |
$ | 1,000.00 | $ | 1,048.31 | $ | 3.17 | |||||||||
Based on Hypothetical 5% Annual Return Before Expenses |
$ | 1,000.00 | $ | 1021.90 | $ | 3.13 |
(1) | The expenses shown in this table are equal to the Funds annualized expense ratio of 0.62% for semi-annual year ended March 31, 2023, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period. |
Please note that expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if transactional costs were included, your costs would have been higher. You can find more information about the Funds expenses in the Financial Statements section of this report. For additional information on operating costs, please see the Funds prospectus.
2
Colorado BondShares A Tax-Exempt Fund
CREDIT QUALITY (unaudited)
Based on a Percentage of Total Net Assets as of March 31, 2023
Colorado BondShares A Tax-Exempt Fund
SECTOR BREAKDOWN (unaudited)
Based on a Percentage of Total Net Assets as of March 31, 2023
* Cash & equivalents include cash and receivables less liabilities.
** Short-term investments include securities with a maturity date or redemption feature of one year or less, as identified in the Schedule of Investments.
3
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments
March 31, 2023 (unaudited)
Colorado Municipal Bonds 65.5% | Maturity |
Coupon |
Principal |
Value |
||||||||||||||
Colorado 100.0% | ||||||||||||||||||
Aberdeen MD #1 Series A 2035 |
12/1/2035 | 7.50% | $ | 1,600,000 | $ | 476,000 | ||||||||||||
Anthology West MD #4 Series A 2041(g) |
12/15/2041 | 6.25% | 1,100,000 | 1,024,573 | ||||||||||||||
Anthology West MD #5 Series A 2049 |
12/1/2049 | 4.88% | 4,630,000 | 3,890,821 | ||||||||||||||
Anthology West MD #5 Series B 2049(g) |
12/15/2049 | 7.63% | 698,000 | 637,818 | ||||||||||||||
Aspen Street MD Series A 2050(g) |
12/1/2050 | 5.13% | 4,300,000 | 3,420,220 | ||||||||||||||
Banning Lewis Ranch Regional MD Series A 2048 |
12/1/2048 | 5.38% | 2,500,000 | 2,400,300 | ||||||||||||||
Banning Lewis Ranch Regional MD Series B 2041(g) |
12/15/2041 | 7.75% | 625,000 | 599,369 | ||||||||||||||
Base Village MD #2 Series A 2048(g) |
12/15/2048 | 6.50% | 3,500,000 | 2,342,550 | ||||||||||||||
Belford North MD Series A 2050 |
12/1/2050 | 5.50% | 4,000,000 | 3,561,320 | ||||||||||||||
Belford North MD Series B 2050(g) |
12/15/2050 | 8.50% | 3,475,000 | 3,239,847 | ||||||||||||||
Bennett Crossing MD #1 Series A 2049 |
12/1/2049 | 6.13% | 6,160,000 | 5,978,465 | ||||||||||||||
Bennett Ranch MD #1 Series A 2051 |
12/1/2051 | 5.00% | 3,000,000 | 2,594,190 | ||||||||||||||
Bennett Ranch MD #1 Series B 2051(g) |
12/15/2051 | 7.50% | 1,221,000 | 1,096,336 | ||||||||||||||
Bent Grass MD Series A 2049 |
12/1/2049 | 5.25% | 1,690,000 | 1,568,827 | ||||||||||||||
Bradburn MD #2 Series C 2051(g) |
12/15/2051 | 7.50% | 3,271,000 | 2,930,652 | ||||||||||||||
Bramming Farm MD #1 Series A 2044(d) |
12/1/2044 | 6.00% | 1,910,000 | 1,827,393 | ||||||||||||||
Brighton Crossing MD #4 Series A 2037 |
12/1/2037 | 5.00% | 1,050,000 | 1,028,360 | ||||||||||||||
Brighton Crossing MD #4 Series A 2047 |
12/1/2047 | 5.00% | 4,685,000 | 4,366,420 | ||||||||||||||
Brighton Crossing MD #4 Series B 2047(g) |
12/1/2047 | 7.00% | 670,000 | 617,104 | ||||||||||||||
Brighton Crossing MD #6 Series A 2035 |
12/1/2035 | 5.00% | 525,000 | 499,963 | ||||||||||||||
Brighton Crossing MD #6 Series A 2040 |
12/1/2040 | 5.00% | 1,545,000 | 1,416,178 | ||||||||||||||
Brighton Crossing MD #6 Series A 2050 |
12/1/2050 | 4.75% | 9,020,000 | 7,668,984 | ||||||||||||||
Broomfield Village MD #2 Series A 2049 |
12/1/2049 | 5.00% | 1,480,000 | 1,312,834 | ||||||||||||||
Buckley Yard MD #2 Series A 2052 |
12/1/2052 | 6.25% | 6,800,000 | 6,585,596 | ||||||||||||||
Buckley Yard MD #2 Series B 2052(g) |
12/15/2052 | 9.25% | 1,569,000 | 1,540,036 | ||||||||||||||
Castleview MD #2 Series A 2050 |
12/1/2050 | 5.00% | 3,435,000 | 2,949,635 | ||||||||||||||
Castleview MD #1 Series A 2050(g) |
12/1/2050 | 5.00% | 4,727,000 | 3,770,019 | ||||||||||||||
Cherry Creek South MD #5 Series A 2051(g) |
12/1/2051 | 6.00% | 22,500,000 | 18,190,125 | ||||||||||||||
Cherry Hills City MD Series A 2047(g) |
12/1/2047 | 5.00% | 1,380,000 | 1,204,643 | ||||||||||||||
Cielo MD Series A 2050(g) |
12/1/2050 | 5.25% | 12,442,000 | 10,072,919 | ||||||||||||||
City Center West Residential MD #2 Series A 2049 |
12/1/2049 | 5.00% | 2,080,000 | 1,863,014 | ||||||||||||||
City Center West Residential MD #2 Series B 2049(g) |
12/15/2049 | 7.75% | 1,425,000 | 1,305,485 | ||||||||||||||
Cityset MD #2 Series A 2030 |
12/1/2030 | 3.50% | 5,625,000 | 4,944,544 | ||||||||||||||
Cityset MD #2 Series A 2040 |
12/1/2040 | 4.38% | 8,360,000 | 7,180,070 | ||||||||||||||
Cityset MD #2 Series A 2045 |
12/1/2045 | 4.50% | 3,180,000 | 2,661,533 | ||||||||||||||
Clear Creek Transit MD #2 Series A 2050 |
12/1/2050 | 5.00% | 2,000,000 | 1,721,680 |
4
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
Colorado Municipal Bonds (Continued) | Maturity |
Coupon |
Principal |
Value |
||||||||||||||
Colorado (Continued) | ||||||||||||||||||
Cloverleaf MD Series A 2051 |
12/1/2051 | 6.00% | $ | 2,330,000 | $ | 2,305,605 | ||||||||||||
Cloverleaf MD Series B 2051(g) |
12/15/2051 | 9.25% | 1,034,000 | 1,040,008 | ||||||||||||||
Colliers Hill MD #3 Series A 2040 |
12/1/2040 | 5.25% | 8,300,000 | 7,841,010 | ||||||||||||||
Colliers Hill MD #3 Series A 2048 |
12/1/2048 | 5.50% | 18,250,000 | 17,057,728 | ||||||||||||||
Colliers Hill MD #3 Series B 2043(g) |
12/15/2043 | 8.50% | 2,213,000 | 2,002,566 | ||||||||||||||
Colorado Centre MD Series B 2032(g)(i) |
1/1/2032 | 0.00% | 6,592,306 | 3,427,999 | ||||||||||||||
Colorado Centre MD Series A 2027(e)(i) |
1/1/2027 | 0.00% | 2,074,674 | 1,820,589 | ||||||||||||||
Colorado Centre MD Series A 2027(f)(i) |
1/1/2027 | 9.00% | 2,076,440 | 1,495,037 | ||||||||||||||
CECFA Swallow Academy Series A 2027(m) |
11/15/2027 | 5.35% | 3,245,000 | 3,094,302 | ||||||||||||||
CECFA Addenbrooke Classical Academy Series A 2027(m) |
6/1/2027 | 4.50% | 24,845,000 | 24,345,864 | ||||||||||||||
CECFA Imagine Charter School at Firestone Series A 2027(m) |
6/1/2027 | 4.50% | 17,380,000 | 16,967,225 | ||||||||||||||
CECFA Monarch Montessori Series A 2025(m) |
5/15/2025 | 4.75% | 8,325,000 | 8,083,908 | ||||||||||||||
CECFA Academy Of Advanced Learning Series A 2027(m) |
6/1/2027 | 4.38% | 8,420,000 | 7,879,773 | ||||||||||||||
CECFA Chavez/Huerta Preparatory Series A 2027(m) |
7/1/2027 | 4.38% | 36,525,000 | 35,013,230 | ||||||||||||||
CECFA Swallows Charter Academy Series A 2027(m) |
11/15/2027 | 4.38% | 6,560,000 | 6,010,272 | ||||||||||||||
CECFA Vanguard Classical School Series A 2027(m) |
7/1/2027 | 4.38% | 24,315,000 | 22,419,646 | ||||||||||||||
CECFA Third Future School Series A 2029(m) |
7/1/2029 | 4.25% | 5,645,000 | 4,943,101 | ||||||||||||||
CECFA Grand Peak Academy Series A 2031(m) |
7/1/2031 | 4.00% | 2,150,000 | 1,823,286 | ||||||||||||||
CECFA Grand Peak Academy Series A 2041(m) |
7/1/2041 | 4.25% | 5,040,000 | 3,750,466 | ||||||||||||||
CECFA Grand Peak Academy Series A 2051(m) |
7/1/2051 | 4.50% | 13,070,000 | 9,142,726 | ||||||||||||||
CECFA Doral Academy Series A 2028(m) |
7/15/2028 | 4.50% | 19,405,000 | 17,838,434 | ||||||||||||||
CECFA Civica Career & Collegiate Academy Series A |
7/15/2029 | 4.75% | 7,790,000 | 7,228,185 | ||||||||||||||
CECFA Chavez/Huerta Academy Series A 2027(m) |
7/1/2027 | 4.50% | 8,220,000 | 7,918,162 | ||||||||||||||
CECFA Mountain Sage Community School Series A |
7/1/2029 | 4.75% | 8,760,000 | 8,451,998 | ||||||||||||||
CECFA Mountain Song Community School Series A |
7/1/2029 | 4.75% | 5,810,000 | 5,611,647 | ||||||||||||||
CECFA CEC / Aurora Charter School Series A |
7/1/2032 | 5.00% | 80,470,000 | 78,145,222 | ||||||||||||||
CECFA CEC / Aurora Charter School Series A |
7/1/2029 | 6.00% | 2,540,000 | 2,459,939 | ||||||||||||||
CECFA CEC / CSEC BC Project Series A 2032(m) |
1/1/2032 | 4.88% | 4,060,000 | 3,947,091 | ||||||||||||||
CECFA CEC / CSEC BC Project Series A 2037(m) |
1/1/2037 | 5.00% | 3,595,000 | 3,456,449 | ||||||||||||||
CECFA CEC / CSEC BC Project Series A 2042(m) |
1/1/2042 | 5.13% | 40,335,000 | 38,462,649 |
5
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
Colorado Municipal Bonds (Continued) | Maturity |
Coupon |
Principal |
Value |
||||||||||||||
Colorado (Continued) | ||||||||||||||||||
CECFA Global Village Academy Senior Bonds |
6/15/2029 | 5.85% | $ | 11,630,000 | $ | 11,673,961 | ||||||||||||
CECFA Fort Collins Montessori School Series A |
7/1/2029 | 6.13% | 17,790,000 | 17,946,908 | ||||||||||||||
700 Kalamath LLC Series A 2013(a)(j) |
12/1/2013 | 0.00% | 3,755,000 | 3,755,000 | ||||||||||||||
CHFA / Caseys Pond Living Series A 2032(l) |
6/1/2032 | 0.00% | 8,110,000 | 4,055,000 | ||||||||||||||
CHFA / Caseys Pond Living Series A 2042(l) |
6/1/2042 | 0.00% | 10,665,000 | 5,332,500 | ||||||||||||||
CHFA / Caseys Pond Living Series A 2047(l) |
6/1/2047 | 0.00% | 8,600,000 | 4,300,000 | ||||||||||||||
Colorado International Center MD #3 Series A 2031 |
12/1/2031 | 4.63% | 586,000 | 552,516 | ||||||||||||||
Conestoga MD #2 Series A 2051(g) |
12/1/2051 | 5.25% | 1,625,000 | 1,425,109 | ||||||||||||||
Conifer MD Series A 2030 |
12/1/2030 | 0.00% | 10,000,000 | 4,000,000 | ||||||||||||||
Conifer MD Series A 2032 |
12/1/2032 | 0.00% | 1,450,000 | 580,000 | ||||||||||||||
Conifer MD Series A 2033 |
12/1/2033 | 0.00% | 1,550,000 | 620,000 | ||||||||||||||
Constitution Heights MD Series A 2049 |
12/1/2049 | 5.00% | 1,765,000 | 1,607,791 | ||||||||||||||
Copperleaf MD #9 Series A 2051(g) |
12/1/2051 | 4.88% | 8,175,000 | 6,370,124 | ||||||||||||||
Country Club Highlands MD Series A 2037 |
12/1/2037 | 7.25% | 1,030,000 | 947,600 | ||||||||||||||
Dacono Urban Renewal Authority Series A 2039(g) |
12/1/2039 | 6.25% | 2,969,000 | 2,802,172 | ||||||||||||||
Dakota Ridge MD Series A 2052(g) |
12/1/2052 | 6.00% | 2,339,000 | 2,107,322 | ||||||||||||||
Deer Creek Villas MD Series A 2055 |
12/1/2055 | 5.00% | 6,085,000 | 5,127,160 | ||||||||||||||
Denver Intl Business Center MD #1 Series B 2048(g) |
12/1/2048 | 6.00% | 4,585,000 | 4,544,606 | ||||||||||||||
Denver West Promenade MD Series A 2031 |
12/1/2031 | 5.13% | 500,000 | 498,065 | ||||||||||||||
Denver West Promenade MD Series B 2046(g) |
12/15/2046 | 6.00% | 500,000 | 477,485 | ||||||||||||||
E86 MD Series A 2051(g) |
12/1/2051 | 5.13% | 4,060,000 | 3,320,390 | ||||||||||||||
Eagle Brook MD Series A 2051(g) |
12/1/2051 | 5.00% | 1,600,000 | 1,367,808 | ||||||||||||||
Erie Highlands MD #2 Series A 2048 |
12/1/2048 | 5.25% | 6,000,000 | 5,584,440 | ||||||||||||||
Erie Highlands MD #2 Series B 2048(g) |
12/15/2048 | 7.63% | 1,819,000 | 1,678,228 | ||||||||||||||
Fitzsimons Village MD #1 Series A 2049 |
12/1/2049 | 5.00% | 1,042,000 | 906,394 | ||||||||||||||
Fitzsimons Village MD #1 Series B 2049(g) |
12/15/2049 | 7.00% | 611,000 | 544,676 | ||||||||||||||
Fitzsimons Village MD #3 Series A 2026 |
12/1/2026 | 4.00% | 1,640,000 | 1,539,124 | ||||||||||||||
Fitzsimons Village MD #3 Series A 2031 |
12/1/2031 | 4.00% | 500,000 | 434,935 | ||||||||||||||
Fitzsimons Village MD #3 Series A 2041 |
12/1/2041 | 4.00% | 4,445,000 | 3,305,791 | ||||||||||||||
Fitzsimons Village MD #3 Series A 2055 |
12/1/2055 | 4.25% | 9,660,000 | 6,700,176 | ||||||||||||||
Flying Horse MD #2 Series B 2050(g)(m) |
12/15/2050 | 7.25% | 15,405,000 | 14,028,717 | ||||||||||||||
Flying Horse MD #3 Series A 2049(g) |
12/1/2049 | 6.00% | 2,965,000 | 2,807,410 | ||||||||||||||
Fort Lupton Golf Course Series A 2037(a) |
12/15/2037 | 0.00% | 620,000 | 6,200 | ||||||||||||||
Golden Eagle Acres MD #2 Series A 2051(g) |
12/1/2051 | 4.50% | 3,325,000 | 2,489,793 | ||||||||||||||
Green Gables MD #2 Series B 2048(g) |
12/15/2048 | 8.25% | 1,689,000 | 1,600,800 |
6
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
Colorado Municipal Bonds (Continued) | Maturity |
Coupon |
Principal |
Value |
||||||||||||||
Colorado (Continued) | ||||||||||||||||||
Green Valley Ranch East MD #6 Series A 2050 |
12/1/2050 | 5.88% | $ | 3,325,000 | $ | 3,181,726 | ||||||||||||
Greenspire MD #1 Series A 2051 |
12/1/2051 | 5.13% | 1,925,000 | 1,694,501 | ||||||||||||||
Greenways MD #1 Series A 2051(g) |
12/1/2051 | 4.63% | 6,845,000 | 4,802,452 | ||||||||||||||
Hess Ranch MD #6 Series A 2049 |
12/1/2049 | 5.00% | 5,000,000 | 4,392,100 | ||||||||||||||
Hidden Creek MD Series A 2045(g) |
12/1/2045 | 4.63% | 3,430,000 | 2,692,722 | ||||||||||||||
Highlands Mead MD Series A 2050 |
12/1/2050 | 5.13% | 1,395,000 | 1,230,502 | ||||||||||||||
Hogback MD Series A 2041 |
12/1/2041 | 5.00% | 725,000 | 659,989 | ||||||||||||||
Hogback MD Series A 2051 |
12/1/2051 | 5.00% | 1,550,000 | 1,335,155 | ||||||||||||||
Horizon MD #2 Series A 2051(g) |
12/1/2051 | 4.50% | 11,657,000 | 8,092,639 | ||||||||||||||
Hunters Overlook MD #5 Series B 2049(g) |
12/15/2049 | 8.50% | 1,827,000 | 1,703,202 | ||||||||||||||
Hunters Overlook MD #7 Series A 2051(g) |
12/1/2051 | 5.50% | 3,525,000 | 3,146,979 | ||||||||||||||
Hyland Village MD Series A 2027 |
12/1/2027 | 10.00% | 4,770,000 | 2,623,500 | ||||||||||||||
Indy Oak Tod MD Series A 2050 |
12/1/2050 | 5.50% | 1,075,000 | 1,007,737 | ||||||||||||||
Indy Oak Tod MD Series B 2050(g) |
12/15/2050 | 8.00% | 736,000 | 695,984 | ||||||||||||||
Inspiration MD Series B 2036 |
12/15/2036 | 5.00% | 788,000 | 697,530 | ||||||||||||||
Iron Works Village MD Series A 2048 |
12/1/2048 | 5.88% | 1,500,000 | 1,574,505 | ||||||||||||||
Jay Grove MD Series A 2051(g) |
12/1/2051 | 4.25% | 2,450,000 | 1,813,588 | ||||||||||||||
Jefferson Center MD #1 Series B 2050(g) |
12/15/2050 | 5.75% | 14,414,000 | 13,864,394 | ||||||||||||||
Karls Farm MD #2 Series A 2040 |
12/1/2040 | 5.38% | 1,155,000 | 1,084,476 | ||||||||||||||
Karls Farm MD #2 Series A 2050 |
12/1/2050 | 5.63% | 3,030,000 | 2,792,812 | ||||||||||||||
The Lakes MD #4 Series A 2061(g) |
12/1/2061 | 5.50% | 20,080,000 | 16,306,366 | ||||||||||||||
Lanterns MD #2 Series A 2050(g) |
12/1/2050 | 4.50% | 12,492,000 | 9,006,482 | ||||||||||||||
Legato Community Authority Series A 2036 |
12/1/2036 | 4.00% | 2,130,000 | 1,753,949 | ||||||||||||||
Legato Community Authority Series A 2046 |
12/1/2046 | 5.00% | 1,000,000 | 853,010 | ||||||||||||||
Legato Community Authority Series A 2051 |
12/1/2051 | 5.00% | 2,500,000 | 2,082,325 | ||||||||||||||
Lincoln Meadows MD Series A 2031 |
12/1/2031 | 8.00% | 6,775,000 | 7,291,594 | ||||||||||||||
Littleton Village MD #2 Series A 2045 |
12/1/2045 | 5.38% | 1,624,000 | 1,585,138 | ||||||||||||||
Littleton Village MD #2 Series B 2028(g) |
12/15/2028 | 7.63% | 1,140,000 | 1,123,949 | ||||||||||||||
Loretto Heights Community Authority Series A |
12/1/2051 | 4.88% | 12,750,000 | 9,840,323 | ||||||||||||||
Marin MD Series A 2028(a)(j) |
12/1/2028 | 0.00% | 17,485,000 | 1,573,650 | ||||||||||||||
Mayfield MD Series A 2050 |
12/1/2050 | 5.75% | 1,190,000 | 1,156,537 | ||||||||||||||
Mayfield MD Series B 2050(g) |
12/15/2050 | 8.25% | 622,000 | 593,811 | ||||||||||||||
Meadows MD #1 Series A 2029(k) |
6/1/2029 | 8.00% | 30,730,000 | 30,003,236 | ||||||||||||||
Meadows MD #2 Series A 2029(k) |
6/1/2029 | 8.00% | 23,830,000 | 23,266,421 | ||||||||||||||
Meadows MD #7 Series A 2029(k) |
6/1/2029 | 8.00% | 15,440,000 | 15,074,844 | ||||||||||||||
Meadowlark MD Series A 2040 |
12/1/2040 | 4.88% | 1,045,000 | 901,804 |
7
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
Colorado Municipal Bonds (Continued) | Maturity |
Coupon |
Principal |
Value |
||||||||||||||
Colorado (Continued) | ||||||||||||||||||
Meadowlark MD Series A 2050 |
12/1/2050 | 5.13% | $ | 1,505,000 | $ | 1,309,245 | ||||||||||||
Mirabelle MD #2 Series A 2049 |
12/1/2049 | 5.00% | 1,250,000 | 1,113,338 | ||||||||||||||
Mirabelle MD #2 Series B 2049(g) |
12/15/2049 | 7.38% | 1,473,000 | 1,337,602 | ||||||||||||||
Monument Junction MD #1 Series A 2051(g) |
12/1/2051 | 5.75% | 12,258,000 | 10,524,964 | ||||||||||||||
Mount Carbon MD Series C 2043(e)(g) |
6/1/2043 | 0.00% | 521,078 | 521,078 | ||||||||||||||
Mountain Brook MD Series A 2051 |
12/1/2051 | 4.75% | 7,740,000 | 5,880,155 | ||||||||||||||
Mountain Brook MD Series A 2041 |
12/1/2041 | 4.50% | 1,000,000 | 800,270 | ||||||||||||||
Mountain Shadows MD Series A 2035 |
12/1/2035 | 5.00% | 500,000 | 486,695 | ||||||||||||||
Mountain Shadows MD Series B 2046(g) |
12/15/2046 | 7.50% | 1,800,000 | 1,681,290 | ||||||||||||||
Mountain Shadows MD Series C 2040(g) |
12/15/2040 | 10.00% | 1,994,000 | 1,902,635 | ||||||||||||||
Muegge Farms MD #1 Series A 2051(g) |
12/1/2051 | 5.00% | 6,300,000 | 5,182,821 | ||||||||||||||
Muegge Farms MD #3 Series A 2051(g) |
12/1/2051 | 5.50% | 10,431,000 | 8,884,709 | ||||||||||||||
Murphy Creek MD #3 Series A 2026 |
12/1/2026 | 6.00% | 2,540,000 | 2,540,000 | ||||||||||||||
Murphy Creek MD #3 Series A 2035 |
12/1/2035 | 6.13% | 1,880,000 | 1,880,000 | ||||||||||||||
Murphy Creek MD #5 Series A 2052 |
12/1/2052 | 6.00% | 2,645,000 | 2,559,461 | ||||||||||||||
Nine Mile MD Series A 2030 |
12/1/2030 | 4.63% | 1,125,000 | 1,062,731 | ||||||||||||||
Nine Mile MD Series A 2040 |
12/1/2040 | 5.13% | 2,500,000 | 2,343,625 | ||||||||||||||
North Range MD #3 Series A 2040 |
12/1/2040 | 5.00% | 2,000,000 | 1,828,620 | ||||||||||||||
Painted Prairie Improvement Authority Series A 2029 |
12/1/2029 | 4.00% | 1,000,000 | 939,920 | ||||||||||||||
Palisade Park North MD #2 Series A 2047 |
12/1/2047 | 5.63% | 1,740,000 | 1,701,807 | ||||||||||||||
Parkdale Community Authority Series A 2040 |
12/1/2040 | 5.00% | 3,140,000 | 2,923,528 | ||||||||||||||
Parkdale Community Authority Series A 2050 |
12/1/2050 | 5.25% | 5,620,000 | 5,012,422 | ||||||||||||||
Parkdale Community Authority Series B 2050(g) |
12/15/2050 | 7.75% | 2,424,000 | 2,216,578 | ||||||||||||||
Parker Automotive MD Series A 2045 |
12/1/2045 | 5.00% | 1,906,000 | 1,783,273 | ||||||||||||||
Parker Automotive MD Series B 2032(g) |
12/15/2032 | 8.00% | 3,785,000 | 3,680,080 | ||||||||||||||
Pioneer Community Authority Series B 2050(g) |
12/15/2050 | 6.75% | 24,592,000 | 22,557,996 | ||||||||||||||
Pioneer MD #3 Series A 2046(g) |
12/1/2046 | 6.50% | 2,646,000 | 2,533,651 | ||||||||||||||
The Plaza MD #1 Series A 2040(m) |
12/1/2040 | 5.00% | 7,850,000 | 7,442,664 | ||||||||||||||
Powhaton Community Authority Series A 2051(g) |
12/1/2051 | 5.00% | 7,450,000 | 6,246,751 | ||||||||||||||
Pronghorn Valley MD Series A 2041 |
12/1/2041 | 3.75% | 515,000 | 398,342 | ||||||||||||||
Pronghorn Valley MD Series A 2051 |
12/1/2051 | 4.00% | 4,400,000 | 3,265,064 | ||||||||||||||
PFA / Colorado Skies Academy Series A 2025(m) |
7/1/2025 | 5.63% | 10,290,000 | 9,963,807 | ||||||||||||||
PFA / Monument Academy Series A 2026(m) |
6/1/2026 | 5.00% | 28,725,000 | 27,947,414 | ||||||||||||||
Ravenna MD Series B 2026(d)(g) |
12/15/2026 | 7.50% | 8,000,000 | 7,301,360 | ||||||||||||||
Reata Ridge Village MD #2 Series A 2049 |
12/1/2049 | 5.00% | 1,803,000 | 1,644,029 | ||||||||||||||
Rendezvous MD #4 Series B 2048(g) |
10/15/2048 | 8.00% | 1,189,000 | 1,098,053 | ||||||||||||||
Remuda Ridge MD Series A 2051(g) |
12/1/2051 | 5.63% | 5,520,000 | 4,745,378 |
8
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
Colorado Municipal Bonds (Continued) | Maturity |
Coupon |
Principal |
Value |
||||||||||||||
Colorado (Continued) | ||||||||||||||||||
Reserve MD #2 Series A 2045 |
12/1/2045 | 5.00% | $ | 500,000 | $ | 459,315 | ||||||||||||
Rex Ranch MD Series B 2047(g) |
12/15/2047 | 7.88% | 445,000 | 417,232 | ||||||||||||||
Ritoro MD Series B 2049(g) |
12/15/2049 | 8.50% | 2,190,000 | 2,249,853 | ||||||||||||||
Riverdale Peaks II MD Series A 2025 |
12/1/2025 | 6.40% | 930,000 | 762,600 | ||||||||||||||
Riverdale Peaks II MD Series A 2035 |
12/1/2035 | 6.50% | 1,135,000 | 930,700 | ||||||||||||||
Riverview MD Series A 2041 |
12/1/2041 | 5.00% | 1,105,000 | 985,284 | ||||||||||||||
Riverview MD Series A 2051 |
12/1/2051 | 5.00% | 2,075,000 | 1,768,253 | ||||||||||||||
Rock Creek MD Series A 2041(g) |
12/1/2041 | 4.50% | 2,230,000 | 1,793,834 | ||||||||||||||
Rock Creek MD Series A 2050(g) |
12/1/2050 | 4.75% | 3,880,000 | 2,960,595 | ||||||||||||||
Rock Creek MD Series A 2031(g) |
12/1/2031 | 4.00% | 3,432,000 | 3,017,655 | ||||||||||||||
Rose Hill Acres MD Series A 2050 |
12/1/2050 | 5.00% | 2,990,000 | 2,613,978 | ||||||||||||||
Rose Hill Acres MD Series B 2050(g) |
12/15/2050 | 8.75% | 910,000 | 849,876 | ||||||||||||||
Roxborough Village MD Series A 2042(f)(i) |
12/31/2042 | 0.00% | 242,645 | 26,691 | ||||||||||||||
RRC MD #2 Series A 2051(g) |
12/1/2051 | 5.25% | 5,625,000 | 4,706,550 | ||||||||||||||
Sabell MD Series A 2050 |
12/1/2050 | 5.00% | 1,055,000 | 926,385 | ||||||||||||||
Sabell MD Series B 2050(g) |
12/15/2050 | 8.25% | 605,000 | 559,909 | ||||||||||||||
Silver Peaks East MD Series A 2051(g) |
12/1/2051 | 5.00% | 5,410,000 | 4,454,973 | ||||||||||||||
64th Avenue ARI Authority Series A 2043(g) |
12/1/2043 | 6.50% | 5,000,000 | 4,768,700 | ||||||||||||||
Solitude MD Series A 2026(j) |
12/1/2026 | 7.00% | 3,520,000 | 2,288,000 | ||||||||||||||
Southglenn MD Series A 2030 |
12/1/2030 | 5.00% | 2,285,000 | 2,285,503 | ||||||||||||||
Southglenn MD Series A 2046 |
12/1/2046 | 5.00% | 2,100,000 | 1,953,945 | ||||||||||||||
Southlands MD #1 Series A 2037 |
12/1/2037 | 5.00% | 500,000 | 490,900 | ||||||||||||||
Southlands MD #1 Series A 2047 |
12/1/2047 | 5.00% | 3,000,000 | 2,799,060 | ||||||||||||||
Southshore MD #2 Series B 2041(g) |
12/15/2041 | 4.13% | 9,690,000 | 9,810,447 | ||||||||||||||
Spring Hill MD #3 Senior Bonds 2052 |
12/1/2052 | 6.75% | 10,305,000 | 10,420,210 | ||||||||||||||
Spring Valley MD #4 Senior Bonds 2040 |
12/1/2040 | 5.00% | 1,410,000 | 1,280,477 | ||||||||||||||
Spring Valley MD #4 Senior Bonds 2050 |
12/1/2050 | 5.12% | 1,775,000 | 1,521,867 | ||||||||||||||
Spring Valley MD #4 Subordinate Bonds 2050(g) |
12/15/2050 | 7.63% | 2,811,000 | 2,527,848 | ||||||||||||||
St Vrain Lakes MD #2 Senior Bonds 2037 |
12/1/2037 | 5.00% | 4,000,000 | 3,902,240 | ||||||||||||||
St. Vrains Lakes MD #2 Series A 2047 |
12/1/2047 | 5.13% | 3,050,000 | 2,861,114 | ||||||||||||||
St Vrain Lakes MD #2 Subordinate Bonds 2047(g) |
12/15/2047 | 7.63% | 1,083,000 | 1,069,278 | ||||||||||||||
STC MD #2 Senior Bonds 2025 |
12/1/2025 | 3.00% | 555,000 | 525,774 | ||||||||||||||
STC MD #2 Senior Bonds 2029 |
12/1/2029 | 4.00% | 1,615,000 | 1,501,062 | ||||||||||||||
STC MD #2 Senior Bonds 2038 |
12/1/2038 | 5.00% | 15,160,000 | 14,105,016 | ||||||||||||||
STC MD #2 Subordinate Bonds 2049(g) |
12/15/2049 | 8.00% | 3,954,000 | 3,659,783 | ||||||||||||||
Sterling Ranch MD #2 Senior Bonds 2032 |
12/1/2032 | 5.25% | 1,340,000 | 1,318,051 | ||||||||||||||
Sterling Ranch MD #2 Senior Bonds 2042 |
12/1/2042 | 5.50% | 5,645,000 | 5,428,740 |
9
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
Colorado Municipal Bonds (Continued) | Maturity |
Coupon |
Principal |
Value |
||||||||||||||
Colorado (Continued) | ||||||||||||||||||
Sterling Ranch MD #2 Senior Bonds 2051 |
12/1/2051 | 5.75% | $ | 11,750,000 | $ | 11,302,208 | ||||||||||||
Stetson Ridge MD #3 Subordinate Bonds |
12/15/2042 | 7.50% | 301,000 | 277,561 | ||||||||||||||
Stone Ridge MD #2 Senior Bonds 2031 |
12/1/2031 | 0.00% | 11,896,000 | 1,903,360 | ||||||||||||||
Tallyns Reach MD #3 Senior Bonds 2038 |
11/1/2038 | 5.13% | 2,070,000 | 2,099,746 | ||||||||||||||
Third Creek MD #1 Senior Bonds 2037 |
12/1/2037 | 4.50% | 1,130,000 | 964,918 | ||||||||||||||
Third Creek MD #1 Senior Bonds 2042 |
12/1/2042 | 4.50% | 3,140,000 | 2,503,051 | ||||||||||||||
Third Creek MD #1 Senior Bonds 2051 |
12/1/2051 | 4.75% | 7,390,000 | 5,653,202 | ||||||||||||||
Thompson Crossing MD #4 Senior Bonds 2039 |
12/1/2039 | 5.00% | 1,410,000 | 1,339,965 | ||||||||||||||
Thompson Crossing MD #4 Senior Bonds 2049 |
12/1/2049 | 5.00% | 1,315,000 | 1,165,892 | ||||||||||||||
Trails At Crowfoot MD #3 Subordinate Bonds 2049(g) |
12/15/2049 | 9.00% | 3,135,000 | 2,943,483 | ||||||||||||||
Valagua MD Senior Bonds 2037 |
12/1/2037 | 0.00% | 11,500,000 | 2,300,000 | ||||||||||||||
Villages At Murphy Creek MD #1 Senior Bonds 2051(g) |
12/1/2051 | 5.50% | 12,358,000 | 10,430,152 | ||||||||||||||
Vincent Village MD Senior Bonds 2051 |
12/1/2051 | 5.00% | 1,970,000 | 1,652,515 | ||||||||||||||
Waterfall MD #1 Senior Bonds 2052 |
12/1/2052 | 5.25% | 2,295,000 | 2,092,994 | ||||||||||||||
Westcreek MD #2 Senior Bonds 2048 |
12/1/2048 | 5.38% | 1,300,000 | 1,225,822 | ||||||||||||||
Westerly MD #4 Senior Bonds 2031 |
12/1/2031 | 4.13% | 600,000 | 533,820 | ||||||||||||||
Westerly MD #4 Senior Bonds 2040 |
12/1/2040 | 5.00% | 2,255,000 | 2,076,066 | ||||||||||||||
Westerly MD #4 Senior Bonds 2050 |
12/1/2050 | 5.00% | 5,250,000 | 4,541,565 | ||||||||||||||
Westerly MD #4 Senior CABs 2050 |
12/1/2026 | 0.00% | 1,000,000 | 665,020 | ||||||||||||||
White Buffalo MD #3 Senior Bonds 2050 |
12/1/2050 | 5.50% | 4,780,000 | 4,410,028 | ||||||||||||||
Wild Plum MD Senior Bonds 2049 |
12/1/2049 | 5.00% | 595,000 | 630,563 | ||||||||||||||
Willow Springs MD Subordinate Bonds 2049(g) |
12/15/2049 | 7.75% | 650,000 | 592,423 | ||||||||||||||
Woodmen Heights MD #2 Subordinate Bonds 2040(g) |
12/15/2040 | 7.50% | 3,358,000 | 3,088,118 | ||||||||||||||
Wyndham Hill MD #2 Subordinate Bonds 2049(g) |
12/15/2049 | 7.63% | 9,600,000 | 8,906,496 | ||||||||||||||
|
|
|
|
|||||||||||||||
Colorado (amortized cost $1,221,557,816) |
1,295,261,143 | 1,121,552,083 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Colorado Municipal Bonds |
$ | 1,295,261,143 | $ | 1,121,552,083 | ||||||||||||||
|
|
|
|
|||||||||||||||
Short-Term Municipal Bonds 5.3% | ||||||||||||||||||
Colorado 74.3% | ||||||||||||||||||
Boulder Housing Authority / Broadway East Series A 2037 (LOC 1) |
9/1/2037 | 4.03% | $ | 1,470,000 | $ | 1,470,000 |
10
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
Short-Term Municipal Bonds (Continued) | Maturity |
Coupon |
Principal |
Value |
||||||||||||||
Colorado (Continued) | ||||||||||||||||||
Boulder College of Massage Series A 2031(a)(j) |
10/15/2031 | 0.00% | $ | 4,315,000 | $ | 4,315,000 | ||||||||||||
Broomfield URA / Event Center Series A 2030 (LOC 2) |
12/1/2030 | 4.03% | 7,185,000 | 7,185,000 | ||||||||||||||
CHFA / Ready Foods Series A 2032 (LOC 1) |
1/1/2032 | 4.03% | 4,715,000 | 4,715,000 | ||||||||||||||
Colorado Springs Utilities Series A 2041 (LOC 1) |
11/1/2041 | 3.95% | 1,100,000 | 1,100,000 | ||||||||||||||
ECCV Water & Sanitation District Series A 2023(c) |
11/15/2023 | 5.00% | 1,011,000 | 1,011,485 | ||||||||||||||
Jeffco Business Center MD #1 Series A 2023(j) |
5/1/2023 | 0.00% | 1,006,000 | 1,006,000 | ||||||||||||||
Ravenna MD Series A CABs 2023(d) |
12/1/2023 | 0.00% | 325,000 | 313,216 | ||||||||||||||
Rockinghorse MD #2 Series A CABs 2024 |
1/1/2024 | 6.00% | 3,565,000 | 3,648,243 | ||||||||||||||
Rockinghorse MD #2 Series B 2024 |
1/1/2024 | 6.50% | 3,885,000 | 3,988,380 | ||||||||||||||
Sheridan Redevelopment Agency / Santa Fe Series A |
12/1/2029 | 4.00% | 38,545,000 | 38,545,000 | ||||||||||||||
|
|
|
|
|||||||||||||||
Colorado (amortized cost $66,898,435) |
67,122,000 | 67,297,323 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Multi-State 18.2% | ||||||||||||||||||
Freddie Mac VR 2045 (LOC 4) |
12/15/2045 | 4.01% | 16,440,000 | 16,440,000 | ||||||||||||||
|
|
|
|
|||||||||||||||
Multi-State (amortized cost $16,440,000) |
16,440,000 | 16,440,000 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Oregon 6.4% | ||||||||||||||||||
Multnomah County Hospital Series A 2023(m) |
10/1/2023 | 5.45% | 5,815,000 | 5,815,000 | ||||||||||||||
|
|
|
|
|||||||||||||||
Oregon (amortized cost $5,815,000) |
5,815,000 | 5,815,000 | ||||||||||||||||
|
|
|
|
|||||||||||||||
South Dakota 1.0% | ||||||||||||||||||
Flandreau Santee Sioux Tribe / Gaming Series A |
1/1/2024 | 8.28% | 950,000 | 929,927 | ||||||||||||||
|
|
|
|
|||||||||||||||
South Dakota (amortized cost $950,000) |
950,000 | 929,927 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Puerto Rico 0.1% | ||||||||||||||||||
Puerto Rico Series A 2023 |
7/1/2023 | 5.25% | 51,698 | 51,772 | ||||||||||||||
|
|
|
|
|||||||||||||||
Puerto Rico (amortized cost $52,990) |
51,698 | 51,772 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Short-Term Municipal Bonds |
$ | 90,378,698 | $ | 90,534,022 | ||||||||||||||
|
|
|
|
|||||||||||||||
Other Municipal Bonds 5.2% | ||||||||||||||||||
South Dakota 86.4% | ||||||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare Series A |
1/1/2036 | 5.75% | $ | 6,055,000 | $ | 4,598,833 |
11
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
Other Municipal Bonds (Continued) | Maturity |
Coupon |
Principal |
Value |
||||||||||||||
South Dakota (Continued) | ||||||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare Series A |
1/1/2026 | 5.00% | $ | 1,740,000 | $ | 1,618,757 | ||||||||||||
Flandreau Santee Sioux Tribe / Healthcare Series A 2031(m) |
1/1/2031 | 5.50% | 3,565,000 | 2,950,857 | ||||||||||||||
Flandreau Santee Sioux Tribe / Gaming Series B 2038(g)(m) |
1/1/2038 | 6.00% | 6,120,000 | 5,245,513 | ||||||||||||||
Flandreau Santee Sioux Tribe / Gaming Series C 2038(m) |
1/1/2038 | 6.00% | 5,450,000 | 4,671,250 | ||||||||||||||
Flandreau Santee Sioux Tribe / Gaming Series A 2025(m) |
1/1/2025 | 8.28% | 1,030,000 | 988,367 | ||||||||||||||
Flandreau Santee Sioux Tribe / Gaming Series A 2026(m) |
1/1/2026 | 8.28% | 1,115,000 | 1,059,261 | ||||||||||||||
Flandreau Santee Sioux Tribe / Gaming Series A 2027(m) |
1/1/2027 | 8.28% | 1,205,000 | 1,137,689 | ||||||||||||||
Flandreau Santee Sioux Tribe / Gaming Series A 2028(m) |
1/1/2028 | 8.28% | 1,305,000 | 1,227,157 | ||||||||||||||
Flandreau Santee Sioux Tribe / Gaming Series A 2033(m) |
1/1/2033 | 8.28% | 8,670,000 | 8,115,033 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2025(m) |
7/1/2025 | 5.75% | 740,000 | 706,641 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2026(m) |
7/1/2026 | 5.75% | 785,000 | 740,020 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2027(m) |
7/1/2027 | 5.75% | 830,000 | 770,016 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2028(m) |
7/1/2028 | 5.75% | 875,000 | 801,395 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2029(m) |
7/1/2029 | 5.75% | 930,000 | 840,078 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2030(m) |
7/1/2030 | 5.75% | 980,000 | 873,837 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2031(m) |
7/1/2031 | 5.75% | 1,040,000 | 916,105 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2032(m) |
7/1/2032 | 5.75% | 1,095,000 | 953,592 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2033(m) |
7/1/2033 | 5.75% | 1,160,000 | 999,433 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2034(m) |
7/1/2034 | 5.75% | 1,225,000 | 1,044,901 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2035(m) |
7/1/2035 | 5.75% | 1,300,000 | 1,098,513 | ||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2040(m) |
7/1/2040 | 6.00% | 7,730,000 | 6,309,149 |
12
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
Other Municipal Bonds (Continued) | Maturity |
Coupon |
Principal |
Value |
||||||||||||||
South Dakota (Continued) | ||||||||||||||||||
Flandreau Santee Sioux Tribe / Healthcare NH Series A 2045(m) |
7/1/2045 | 6.25% | $ | 10,395,000 | $ | 8,309,347 | ||||||||||||
Lower Brule Sioux Tribe Series A 2025(m) |
3/1/2025 | 5.88% | 1,000,000 | 935,870 | ||||||||||||||
Oglala Sioux Tribe / Healthcare Series A 2028(m) |
7/1/2028 | 5.50% | 2,600,000 | 2,395,770 | ||||||||||||||
Oglala Sioux Tribe / Healthcare Series A 2037(m) |
7/1/2037 | 6.00% | 9,270,000 | 7,533,822 | ||||||||||||||
Oglala Sioux Tribe / Healthcare Series B 2041(m) |
9/1/2041 | 6.50% | 6,050,000 | 4,977,456 | ||||||||||||||
Oglala Sioux Tribe Series A 2024(m) |
10/1/2024 | 5.50% | 1,985,000 | 1,943,514 | ||||||||||||||
Oglala Sioux Tribe Series C 2026(m) |
10/1/2026 | 8.00% | 800,000 | 783,640 | ||||||||||||||
Oglala Sioux Tribe Series A 2027(m) |
10/1/2027 | 4.50% | 2,370,000 | 2,152,695 | ||||||||||||||
|
|
|
|
|||||||||||||||
South Dakota (amortized cost $89,409,600) |
89,415,000 | 76,698,508 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Puerto Rico 10.4% | ||||||||||||||||||
Puerto Rico Series A 2025 |
7/1/2025 | 5.38% | 103,109 | 104,697 | ||||||||||||||
Puerto Rico Series A 2027 |
7/1/2027 | 5.63% | 102,175 | 105,565 | ||||||||||||||
Puerto Rico Series A 2029 |
7/1/2029 | 5.63% | 100,517 | 104,936 | ||||||||||||||
Puerto Rico Series A 2031 |
7/1/2031 | 5.75% | 97,632 | 103,535 | ||||||||||||||
Puerto Rico Series A 2033 |
7/1/2033 | 4.00% | 92,580 | 83,223 | ||||||||||||||
Puerto Rico Series A 2035 |
7/1/2035 | 4.00% | 83,217 | 72,534 | ||||||||||||||
Puerto Rico Series A 2037 |
7/1/2037 | 4.00% | 71,422 | 60,429 | ||||||||||||||
Puerto Rico Series A 2041 |
7/1/2041 | 4.00% | 97,107 | 78,718 | ||||||||||||||
Puerto Rico Series A 2046 |
7/1/2046 | 4.00% | 100,990 | 78,694 | ||||||||||||||
Puerto Rico Series A 2024 |
7/1/2024 | 0.00% | 30,955 | 29,135 | ||||||||||||||
Puerto Rico Series A 2033 |
7/1/2033 | 0.00% | 119,142 | 67,470 | ||||||||||||||
Puerto Rico Series A 2043 |
7/1/2043 | 0.00% | 438,347 | 190,681 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2034 |
7/1/2034 | 4.50% | 277,000 | 273,402 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2040 |
7/1/2040 | 4.55% | 140,000 | 130,924 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2053 |
7/1/2053 | 4.75% | 1,028,000 | 940,312 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2058 |
7/1/2058 | 5.00% | 2,600,000 | 2,448,342 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2024 |
7/1/2024 | 0.00% | 97,000 | 91,720 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2027 |
7/1/2027 | 0.00% | 267,000 | 219,367 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2029 |
7/1/2029 | 0.00% | 260,000 | 193,638 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2031 |
7/1/2031 | 0.00% | 336,000 | 224,132 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2033 |
7/1/2033 | 0.00% | 378,000 | 226,876 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2046 |
7/1/2046 | 0.00% | 3,597,000 | 940,040 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2051 |
7/1/2051 | 0.00% | 2,930,000 | 566,603 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2040 |
7/1/2040 | 4.33% | 1,424,000 | 1,295,911 | ||||||||||||||
Puerto Rico / Sales Tax Series A 2053 |
7/1/2053 | 4.54% | 43,000 | 37,954 |
13
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
Other Municipal Bonds (Continued) | Maturity |
Coupon |
Principal |
Value |
||||||||||||||
Puerto Rico (Continued) | ||||||||||||||||||
Puerto Rico / Sales Tax Series A 2058 |
7/1/2058 | 4.78% | $ | 571,000 | $ | 518,268 | ||||||||||||
|
|
|
|
|||||||||||||||
Puerto Rico (amortized cost $8,977,208) |
15,385,193 | 9,187,105 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Washington 2.4% | ||||||||||||||||||
Tacoma / Local Improvement District #65 Senior Bonds 2043 |
4/1/2043 | 5.75% | 2,185,000 | 2,100,397 | ||||||||||||||
|
|
|
|
|||||||||||||||
Washington (amortized cost $2,045,947) |
2,185,000 | 2,100,397 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Oklahoma 0.5% | ||||||||||||||||||
Haskell County Public Facilities Series B 2024(g) |
4/1/2024 | 5.25% | 450,000 | 446,625 | ||||||||||||||
|
|
|
|
|||||||||||||||
Oklahoma (amortized cost $450,000) |
450,000 | 446,625 | ||||||||||||||||
|
|
|
|
|||||||||||||||
California 0.3% | ||||||||||||||||||
Freddie Mac 2037(g)(j) |
1/1/2037 | 0.00% | 266,710 | 266,710 | ||||||||||||||
|
|
|
|
|||||||||||||||
California (amortized cost $266,710) |
266,710 | 266,710 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Missouri 0.0% | ||||||||||||||||||
Kansas City IDA Series A 2028 |
1/1/2028 | 6.75% | 28,000 | 28,061 | ||||||||||||||
|
|
|
|
|||||||||||||||
Missouri (amortized cost $28,000) |
28,000 | 28,061 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Other Municipal Bonds |
$ | 107,729,903 | $ | 88,727,406 | ||||||||||||||
|
|
|
|
|||||||||||||||
Colorado Capital Appreciation and Zero Coupon Bonds 3.6% | ||||||||||||||||||
Colorado 100.0% | ||||||||||||||||||
Bella Mesa MD Series A CABs 2049(m) |
12/1/2049 | 0.00% | $ | 7,565,000 | $ | 6,340,075 | ||||||||||||
Colorado International Center MD #7 Series A CABs 2027 |
12/1/2027 | 0.00% | 21,285,000 | 11,440,900 | ||||||||||||||
Conifer MD Series B 2031(a)(d)(g)(j) |
12/1/2031 | 0.00% | 7,470,000 | 2,988,000 | ||||||||||||||
Mayfield MD Series C 2050 |
12/15/2050 | 3.00% | 766,000 | 268,766 | ||||||||||||||
PV ERU Holding Trust Series A CABs 2039(a)(m) |
2/14/2039 | 0.00% | 710,000 | 149,100 | ||||||||||||||
PV ERU Holding Trust Series A CABs 2039(a)(m) |
2/14/2039 | 0.00% | 3,122,000 | 655,620 | ||||||||||||||
PV ERU Holding Trust Series A CABs 2039(a)(m) |
2/14/2039 | 0.00% | 13,168,000 | 2,765,280 | ||||||||||||||
PV ERU Holding Trust Series A CABs 2037(a)(m) |
12/15/2037 | 0.00% | 14,000,000 | 2,940,000 | ||||||||||||||
Ravenna MD Series A CABs 2046(d) |
12/1/2046 | 5.00% | 33,685,000 | 30,640,213 | ||||||||||||||
Ravenna MD Series A CABs 2024(d) |
12/1/2024 | 0.00% | 490,000 | 446,321 | ||||||||||||||
Ravenna MD Series A CABs 2025(d) |
12/1/2025 | 0.00% | 585,000 | 503,293 | ||||||||||||||
Rockinghorse MD #2 Series C 2024 |
6/1/2024 | 0.00% | 1,115,000 | 1,097,796 |
14
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
Colorado Capital Appreciation and Zero Coupon Bonds (Continued) |
Maturity |
Coupon |
Principal |
Value |
||||||||||||||||
Colorado (Continued) | ||||||||||||||||||||
Third Creek MD #1 Senior CABs 2026 |
|
12/1/2026 | 0.00% | $ | 2,285,000 | $ | 1,432,398 | |||||||||||||
|
|
|
|
|||||||||||||||||
Colorado (amortized cost $76,651,818) |
|
106,246,000 | 61,667,763 | |||||||||||||||||
|
|
|
|
|||||||||||||||||
Colorado Capital Appreciation and Zero Coupon Bonds |
|
$ | 106,246,000 | $ | 61,667,763 | |||||||||||||||
|
|
|
|
|||||||||||||||||
Colorado Taxable Certificates/Notes/Bonds 0.3% | ||||||||||||||||||||
Colorado 100.0% | ||||||||||||||||||||
Colliers Hill MD #2 / Taxable Series B 2047 |
|
12/15/2047 | 6.00% | $ | 2,250,000 | $ | 2,122,853 | |||||||||||||
CECFA CEC / Aurora Charter School / Taxable Series A 2031(m) |
|
7/1/2031 | 6.13% | 1,960,000 | 1,868,782 | |||||||||||||||
Woodmen Heights MD #2 / Taxable Subordinate Bonds 2040(g) |
|
12/15/2040 | 6.25% | 1,804,000 | 1,703,824 | |||||||||||||||
Tabernash Pole Creek Note Senior Bonds |
|
12/31/2023 | 0.00% | 227,347 | 88,199 | |||||||||||||||
|
|
|
|
|||||||||||||||||
Colorado (amortized cost $6,241,347) |
|
6,241,347 | 5,783,657 | |||||||||||||||||
|
|
|
|
|||||||||||||||||
Colorado Taxable Certificates/Notes/Bonds |
|
$ | 6,241,347 | $ | 5,783,657 | |||||||||||||||
|
|
|
|
|||||||||||||||||
Total investments, at value |
79.9 | % | $ | 1,368,264,931 | ||||||||||||||||
Other assets net of liabilities |
20.1 | % | 344,653,759 | |||||||||||||||||
|
|
|
|
|||||||||||||||||
Net Assets |
100.0 | % | $ | 1,712,918,690 | ||||||||||||||||
|
|
|
|
15
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
(a) | Defaulted or non-income producing based upon the financial condition of the issuer (see note 2 in notes to financial statements). |
(b) | Originally issued as general obligation bonds but are now pre-refunded and are secured by an escrow fund consisting entirely of direct U.S. Government obligations. No pre-refunded bonds were owned by the Fund at March 31, 2023. |
(c) | Represents securities whose blended characteristics are reflective of a zero coupon bond and a step rate bond. Interest rate shown represents effective yield at acquisition. |
(d) | Interest rate shown for capital appreciation and zero coupon bonds represents the effective yield at the date of acquisition. |
(e) | Principal-only certificate represents the right to receive the principal payments on the underlying debt security upon maturity. The price of this security is typically more volatile than that of coupon-bearing bonds of the same maturity. |
(f) | Interest-only certificate represents the right to receive semi-annual interest payments on the underlying debt security. The principal amount of the underlying security represents the notional amount on which current interest is calculated. The interest rate shown represents the effective yield at the date of acquisition. |
(g) | Interest rate disclosed for cash flow bond represents the effective yield at March 31, 2023. Income on this security is derived from the cash flow of the issuer. |
(h) | Represents current interest rate for a step rate bond. No step rate bonds were owned by the Fund at March 31, 2023. |
(i) | Terms of security have been restructured since the original issuance. The total face amount of all such restructured securities approximates $10,986,065 and a value of $6,770,316 or less than 1.0% of net assets, as of March 31, 2023. |
(j) | Securities valued at fair value (see note 2 in notes to financial statements). |
(k) | See note 7 in notes to financial statements for further information on purchase accrued interest related to these bonds. |
(l) | The Fund has entered into a forbearance agreement under which it agrees that the issuer may pay a reduced rate of interest in lieu of the contract rate for a period of time (see note 2 in notes to financial statements). |
See accompanying notes to financial statements.
16
Colorado BondShares
A Tax-Exempt Fund
Schedule of Investments (unaudited) (Continued)
(m) | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2023, the aggregate value was $504,436,899 representing 29.45% of net assets. |
(LOC) | These securities are Variable Rate Demand Obligations (VRDO) with scheduled principal and interest payments that have a guaranteed liquidity provider in the form of a letter of credit. These obligations bear interest at a rate that resets daily or weekly (see note 2 in notes to financial statements). The numbered list below corresponds to the liquidity provider associated with the respective LOC. |
1. US Bank, N.A.
2. BNP Paribas
3. JP Morgan Chase Bank N.A.
4. Freddie Mac
The following abbreviations are used in the descriptions of securities included in the Schedule of Investments:
CABs Capital Appreciation Bonds
CONV Convertible
I/O Interest Only
L/D Local Improvement District
MD Metropolitan District
P/O Principal Only
See accompanying notes to financial statements.
17
Colorado BondShares
A Tax-Exempt Fund
Statement of Assets and Liabilities
March 31, 2023 (unaudited)
ASSETS |
| |||
Investments, at value (amortized cost 1,495,784,871) |
$ | 1,368,264,931 | ||
see accompanying schedule |
||||
Cash |
104,615,029 | |||
Interest receivable |
153,185,645 | |||
Purchase accrued interest (note 7) |
92,156,671 | |||
Receivable for shares of beneficial interest sold |
574,587 | |||
|
|
|||
TOTAL ASSETS |
1,718,796,863 | |||
|
|
|||
LIABILITIES |
| |||
Payables and other liabilities: |
||||
Dividends payable |
3,687,340 | |||
Payable for shares of beneficial interest redeemed |
497,836 | |||
Management fees payable |
721,605 | |||
Accrued expenses payable |
971,392 | |||
|
|
|||
TOTAL LIABILITIES |
5,878,173 | |||
|
|
|||
NET ASSETS |
$ | 1,712,918,690 | ||
|
|
|||
COMPOSITION OF NET ASSETS |
||||
Paid-in capital |
$ | 1,839,086,047 | ||
Accumulated net realized gain |
1,352,582 | |||
Net unrealized appreciation (depreciation) of investments |
(127,519,939 | ) | ||
|
|
|||
NET ASSETS |
$ | 1,712,918,690 | ||
|
|
|||
NET ASSET PRICE AND REDEMPTION PRICE PER SHARE |
$ | 8.67 | ||
|
|
|||
MAXIMUM OFFERING PRICE PER SHARE |
$ | 9.10 | ||
|
|
See accompanying notes to financial statements.
18
Colorado BondShares
A Tax-Exempt Fund
Statement of Operations
For the Six Months Ended March 31, 2023 (unaudited)
INVESTMENT INCOME |
||||
Interest |
$ | 46,645,868 | ||
EXPENSES |
||||
Management fees (note 4) |
4,215,568 | |||
Custodian fees (note 5) |
58,462 | |||
Legal and auditing fees |
474,947 | |||
Portfolio pricing fees |
32,369 | |||
Registration fees |
31,490 | |||
Shareholders reports |
46,774 | |||
Transfer agency expenses (note 4) |
131,194 | |||
Trustees fees |
6,006 | |||
Other |
321,705 | |||
|
|
|||
Total expenses |
5,318,515 | |||
Custody credits (note 5) |
(43,587 | ) | ||
|
|
|||
Net expenses |
5,274,928 | |||
|
|
|||
NET INVESTMENT INCOME |
41,370,940 | |||
|
|
|||
REALIZED AND UNREALIZED GAIN ON INVESTMENTS |
||||
Net realized gain on investments |
456,274 | |||
Net unrealized appreciation (depreciation) on investments |
35,826,698 | |||
|
|
|||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS |
36,282,972 | |||
|
|
|||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 77,653,912 | ||
|
|
See accompanying notes to financial statements.
19
Colorado BondShares
A Tax-Exempt Fund
Statements of Changes in Net Assets
For the Periods Indicated
Six Months Ended March 31, 2023 |
Year Ended September 30, 2022 |
|||||||
(unaudited) | ||||||||
FROM OPERATIONS: |
||||||||
Net investment income |
$ | 41,370,940 | $ | 70,666,017 | ||||
Net realized gain on investments |
456,274 | 3,609,083 | ||||||
Unrealized appreciation (depreciation) on investments |
35,826,698 | (177,996,082 | ) | |||||
|
|
|
|
|||||
Net increase (decrease) in net assets resulting from operations |
77,653,912 | (103,720,982 | ) | |||||
|
|
|
|
|||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: (note 2) |
||||||||
Dividends to shareholders from net investment income |
(41,370,940 | ) | (70,666,017 | ) | ||||
Net realized gain to shareholders from investment transactions |
(3,499,687 | ) | (1,463,919 | ) | ||||
|
|
|
|
|||||
Total distributions to shareholders |
(44,870,627 | ) | (72,129,936 | ) | ||||
|
|
|
|
|||||
FROM BENEFICIAL INTEREST TRANSACTIONS: |
||||||||
Proceeds from sale of shares |
61,862,320 | 199,577,871 | ||||||
Reinvested dividends and distributions |
31,546,480 | 51,464,533 | ||||||
Redemption of shares |
(88,943,239 | ) | (167,665,085 | ) | ||||
|
|
|
|
|||||
Increase (decrease) in net assets derived from beneficial interest transactions |
4,465,561 | 83,377,319 | ||||||
|
|
|
|
|||||
Net increase (decrease) in net assets |
37,248,847 | (92,473,599 | ) | |||||
NET ASSETS: |
||||||||
Beginning of period |
1,675,669,843 | 1,768,143,442 | ||||||
|
|
|
|
|||||
End of period |
$ | 1,712,918,690 | $ | 1,675,669,843 | ||||
|
|
|
|
See accompanying notes to financial statements.
20
Colorado BondShares
A Tax-Exempt Fund
Financial Highlights
The financial highlights table is intended to help you understand the Funds financial performance. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions). Sales charges are not reflected in the total returns.
For the Fiscal Year Ended September 30 | ||||||||||||||||||||
3/31/2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
For a share outstanding throughout the period | (unaudited) | |||||||||||||||||||
Net asset value, beginning of period |
$ | 8.50 | $ | 9.39 | $ | 9.22 | $ | 9.25 | $ | 9.13 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income From Investment Operations |
||||||||||||||||||||
Net investment income(1) |
0.21 | 0.37 | 0.37 | 0.37 | 0.37 | |||||||||||||||
Net gain or (loss) on investments (both realized and unrealized) |
0.19 | (0.88 | ) | 0.19 | (0.03 | ) | 0.17 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Increase (decrease) from investment operations |
0.40 | (0.51 | ) | 0.56 | 0.34 | 0.54 | ||||||||||||||
Less Distributions |
||||||||||||||||||||
Dividends to shareholders from net investment income |
(0.21 | ) | (0.37 | ) | (0.37 | ) | (0.37 | ) | (0.37 | ) | ||||||||||
Distributions from realized capital gains |
(0.02 | ) | (0.01 | ) | (0.02 | ) | | (0.05 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Distributions |
(0.23 | ) | (0.38 | ) | (0.39 | ) | (0.37 | ) | (0.42 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase (decrease) in net asset value |
0.17 | (0.89 | ) | 0.17 | (0.03 | ) | 0.12 | |||||||||||||
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|
|
|
|
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|
|||||||||||
Net Asset Value, end of period |
$ | 8.67 | $ | 8.50 | $ | 9.39 | $ | 9.22 | $ | 9.25 | ||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
Total Return, at Net Asset Value(2) |
4.72 | %+ | -5.72 | % | 5.91 | % | 3.83 | % | 6.09 | % | ||||||||||
|
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|
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Ratios/Supplemental Data: |
||||||||||||||||||||
Ratios to average net assets: |
||||||||||||||||||||
Net investment income |
4.90 | %* | 4.01 | % | 3.92 | % | 4.02 | % | 4.02 | % | ||||||||||
Total expenses |
0.62 | %* | 0.55 | % | 0.61 | % | 0.58 | % | 0.55 | % | ||||||||||
Net expenses |
0.62 | %* | 0.55 | % | 0.61 | % | 0.57 | % | 0.55 | % | ||||||||||
Net assets, end of period (000s) |
$ | 1,712,919 | $ | 1,675,670 | $ | 1,768,143 | $ | 1,494,477 | $ | 1,422,697 | ||||||||||
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Portfolio turnover rate(3) |
1.91 | % | 9.94 | % | 10.66 | % | 22.54 | % | 9.62 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
+ | not annualized |
* | annualized |
(1) | Net investment income per share was calculated using an average shares method. |
(2) | Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. |
(3) | The portfolio turnover rate is computed by dividing the lesser of purchases or sales of portfolio securities for a period by the monthly average of the value of portfolio securities owned during the period. Sales of securities include the proceeds of securities that have been called or for which payment has been made through redemption or maturity. Securities with a maturity date of one year or less at the time of acquisition are excluded from the calculation. Cost of purchases and proceeds from sales of investment securities (excluding short-term securities) for the period ended March 31, 2023 were $82,641,465 and $24,128,206 respectively. |
See accompanying notes to financial statements.
21
Colorado BondShares
A Tax-Exempt Fund
Notes to Financial Statements (unaudited)
(1) | Organization |
Colorado BondShares A Tax-Exempt Fund (the Fund) is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management company. The Funds investment objectives are to maximize income exempt from federal income taxes and from personal income taxes of the State of Colorado to the extent consistent with the preservation of capital and to seek opportunities for capital appreciation. The Funds investment adviser is Freedom Funds Management Company (Freedom Funds).
(2) | Summary of Significant Accounting Policies |
These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. This 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 income and expenses during the reporting period. Actual results could differ from those estimates. These financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of financial position and results of operations for the reporting period. The following summarizes the significant accounting policies of the Fund:
(a) | Investment Valuation and Risk |
The fair value of securities for which there is no last sales price is determined either by an independent pricing service or management, considering market transactions and dealer quotes of comparable securities as well as proprietary pricing models.
Securities for which market quotations are not readily available (or management considers otherwise are no longer valid or reliable) are valued at fair value determined in accordance with procedures approved by the Board of Trustees. This can occur in the event of, among other things, natural disasters, acts of terrorism, market disruptions, intra-day trading halts, and extreme market volatility. The determination of fair value involves subjective judgments. As a result, using fair value to price a security may result in a price materially different from the prices used by other mutual funds to determine net asset value or the price that may be realized upon the actual sale of the security. Short-term holdings are valued at current market quotations or amortized cost, whichever management believes best approximates fair value.
Fixed-income securities owned by the Fund are subject to interest-rate risk, credit risk, prepayment risk and market risk. The Fund invests in non-rated securities which may be subject to a greater degree of credit risk and risk of loss of income and principal and may be more sensitive to economic conditions than lower yielding, higher rated fixed income securities. The Fund concentrates its investments in Colorado and, therefore, may be impacted by specific events, issuers or factors affecting Colorado. The Fund has more credit risk related to the economic conditions of Colorado than a portfolio with a broader geographical diversification.
22
Colorado BondShares
A Tax-Exempt Fund
Notes to Financial Statements (unaudited) (Continued)
Accounting Standards Codification (ASC) 820 Fair Value Measurements and Disclosures establishes a fair value hierarchy that classifies securities based on valuation techniques used to measure fair value and distinguish between observable inputs (market data obtained from independent sources) and the reporting entities own assumptions, which are not readily observable to market participants. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).
Level 1 Inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2 Inputs: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 Inputs: Significant unobservable inputs for the asset or liability including managements own assumptions. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available.
The following table summarizes the valuation of the Funds investments as defined by ASC 820 hierarchy levels as of March 31, 2023.
Valuation Inputs Summary
Colorado Municipal Bonds |
Short-Term Municipal Bonds |
Other Municipal Bonds |
Colorado Capital Appreciation and Zero Coupon Bonds |
Colorado Taxable Certificates/ Notes/ Bonds |
Total Securities March 31, 2023 |
|||||||||||||||||||
Level 1 Securities |
$ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||
Level 2 Securities |
1,113,935,433 | 85,213,022 | 88,460,696 | 58,679,763 | 5,695,458 | 1,351,984,372 | ||||||||||||||||||
Level 3 Securities |
7,616,650 | 5,321,000 | 266,710 | 2,988,000 | 88,199 | 16,280,559 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Totals |
$ | 1,121,552,083 | $ | 90,534,022 | $ | 88,727,406 | $ | 61,667,763 | $ | 5,783,657 | $ | 1,368,264,931 | ||||||||||||
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|
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|
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|
|
|
|
23
Colorado BondShares
A Tax-Exempt Fund
Notes to Financial Statements (unaudited) (Continued)
Colorado Municipal Bonds |
Short-Term Municipal Bonds |
Other Municipal Bonds |
Colorado Capital Appreciation and Zero Coupon Bonds |
Colorado Taxable Certificates/ Notes/Bonds |
Totals | |||||||||||||||||||
Level 3 Beginning Balance September 30, 2022 |
$ | 7,616,650 | $ | 5,321,000 | $ | 273,160 | $ | 2,988,000 | $ | 88,199 | $ | 16,287,009 | ||||||||||||
Unrealized Losses |
| | | | | | ||||||||||||||||||
Unrealized Gains |
| | | | | | ||||||||||||||||||
Realized Losses |
| | | | | | ||||||||||||||||||
Realized Gains |
| | | | | | ||||||||||||||||||
Purchases |
| | | | | | ||||||||||||||||||
Sales |
| | (6,450 | ) | | | (6,450 | ) | ||||||||||||||||
Transfers In to Level 3* |
| | | | | | ||||||||||||||||||
Transfers Out of Level 3* |
| | | | | | ||||||||||||||||||
|
|
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|
|
|
|
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|
|
|
|||||||||||||
Balance as of March 31, 2023 |
$ | 7,616,650 | $ | 5,321,000 | $ | 266,710 | $ | 2,988,000 | $ | 88,199 | $ | 16,280,559 | ||||||||||||
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|
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|
|
* Transfers from Level 2 to Level 3 are because of a lack, or change of observable inputs or reduced market data reliability. Transfers from Level 3 to Level 2 are the result of observable inputs becoming available or increased market data reliability. The Funds policy is to recognize transfers into and out of Level 3 when management becomes aware of a change to significant observable input or market data reliability.
From September 30, 2022 to March 31, 2023, there were no Level 1 Securities.
Significant Unobservable Inputs Quantitative Disclosure
Level 3 Securities* |
Fair Value as of March 31, 2023 |
Valuation Technique(s)** |
Unobservable Inputs |
Low | High | Weighted Average |
||||||||||||||
Colorado Municipal Bonds |
$ | 7,616,650 | discounted cash flow | probability of default | 5.00% | 100.00% | 51.83% | |||||||||||||
Short-Term Municipal Bonds |
5,321,000 | discounted cash flow | probability of default | 5.00% | 10.00% | 5.95% | ||||||||||||||
Other Municipal Bonds |
266,710 | discounted cash flow | probability of default | 1.00% | 1.00% | 1.00% | ||||||||||||||
Colorado Capital Appreciation and Zero Coupon Bonds |
2,988,000 | discounted cash flow | probability of default | 100.00% | 100.00% | 100.00% | ||||||||||||||
Colorado Taxable Certificates/Notes/Bonds |
88,199 | discounted cash flow | probability of default | 100.00% | 100.00% | 100.00% | ||||||||||||||
|
|
|||||||||||||||||||
Total Level 3 Securities at March 31, 2023 |
$ | 16,280,559 | ||||||||||||||||||
|
|
The significant unobservable inputs used in the fair value measurement of the Funds securities are collateral value, probability of default, and loss severity in the event of default. Any changes in unobservable inputs may result in substantial changes to fair value measurements.
* The inputs for these securities are not readily available or cannot be reasonably estimated and are generally those inputs described in Note 2(a). The appropriateness of fair values for these securities is based on results of back testing, broker due diligence, unchanged price review and consideration of macro or security specific events.
** Other unobservable inputs used in the discounted cash flow technique include collateral value and loss severity. These unobservable inputs are specific to the characteristics of each security being valued.
24
Colorado BondShares
A Tax-Exempt Fund
Notes to Financial Statements (unaudited) (Continued)
(b) | Cash |
The Fund continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. As of March 31, 2023, and periodically throughout the year, the Fund has maintained balances in various operating accounts in excess of federally insured limits.
(c) | Income Tax Information and Distributions to Shareholders |
The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code, as amended, applicable to regulated investment companies and to distribute all its net investment income and any net realized gain on investments not offset by capital loss carryforwards to shareholders. The Fund distributes investment income monthly and due to the tax-exempt nature of its investments, the income is generally non-taxable to the shareholders. The Fund distributes net realized capital gains, if any, to its shareholders at least annually. Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences are primarily due to the differing treatment of tax allocations.
Management has reviewed the Funds tax position for all open tax years. As of March 31, 2023 the Fund did not have a liability for any unrecognized tax obligations. The Fund recognizes interest and penalties, if any, related to unrecognized tax obligations as income tax expense in the Statement of Operations. The Fund has no examinations in progress.
At March 31, 2023 the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
Cost of investments |
$ | 1,495,784,871 | ||
|
|
|||
Gross unrealized appreciation |
$ | 11,451,931 | ||
Gross unrealized depreciation |
(138,971,870 | ) | ||
|
|
|||
Net unrealized appreciation (depreciation) of investments |
$ | (127,519,939 | ) | |
|
|
For tax purposes, capital losses may be carried over to offset future capital gains, if any. Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Fund in taxable years beginning after December 22, 2010 are not subject to expiration and such losses retain their character as either short-term or long-term rather than being considered short-term as under previous law. Post-enactment capital losses must be fully utilized prior to utilizing any losses incurred in pre-enactment tax years.
(d) | Defaulted or Non-income Producing Investments |
The Fund discontinues the accrual of interest income on municipal bonds when the securities become delinquent as to payment of principal or interest, or when the Funds investment adviser determines that an
25
Colorado BondShares
A Tax-Exempt Fund
Notes to Financial Statements (unaudited) (Continued)
uncertainty exists as to the realization of all or a portion of the principal balance. The face amount of bonds for which the accrual of interest income has been discontinued approximates $64,872,347 and such bonds have a value of $19,236,049 or 1.12% of net assets, as of March 31, 2023. These securities have been identified in the accompanying Schedule of Investments.
The Fund has entered into forbearance agreements with one district under which it agrees that the issuer may pay a reduced rate of interest in lieu of the contract rate for a period of time. Face amount of the bonds for which the Fund has entered into forbearance agreements total $27,375,000 and have a value of $13,687,500 or 0.80% of net assets, as of March 31, 2023. These securities have been identified in the Schedule of Investments.
(e) | Investment Transactions and Revenue Recognition |
Investment transactions are accounted for on the date the investments are purchased or sold (trade date). Purchases and sales of securities, other than short-term securities, aggregated to $82,641,465 and $24,128,206 respectively.
Dividends to shareholders are declared each business day and paid monthly. Distributions to shareholders are recorded on the ex-dividend date. Realized gains and losses from investment transactions are calculated using the identified-cost basis, which is the same basis the Fund uses for federal income tax purposes. Interest income is recorded on the accrual basis.
Variable Rate Demand Obligations (VRDO) purchased by the Fund are floating rate obligations that have a nominal long-term maturity but have a coupon rate that is reset periodically (e.g., daily or weekly). The investor has the option to put the issue back to the trustee or tender agent at any time with specified (e.g., seven days) notice; accordingly the Fund treats these obligations as short-term holdings. On March 31, 2023, the interest rates paid on these obligations ranged from 3.95% to 4.03%.
(f) | Classification of Distributions to Shareholders |
The character of distributions made during the year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. Also, due to timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain was recorded by the Fund.
(g) | Securities Purchased on a When-Issued Basis |
The Fund may purchase securities on a when-issued basis with payment and delivery scheduled for a future date. These transactions are subject to market fluctuations and may increase or decrease in value prior to the delivery date. The Fund maintains segregated assets with a value equal to or greater than the amount of its purchase commitments. The Fund did not have any when-issued securities at March 31, 2023.
26
Colorado BondShares
A Tax-Exempt Fund
Notes to Financial Statements (unaudited) (Continued)
(3) | Shares of Beneficial Interest |
The Fund has an unlimited number of no par value shares of beneficial interest authorized. Transactions in shares of beneficial interest were as follows:
Six Months Ended March 31, 2023 |
Year Ended September 30, 2022 |
|||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
(unaudited) | ||||||||||||||||
Shares sold |
7,158,116 | $ | 61,862,320 | 21,909,934 | $ | 199,577,871 | ||||||||||
Dividends reinvested |
3,650,731 | 31,546,480 | 5,699,446 | 51,464,533 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
10,808,847 | 93,408,800 | 27,609,380 | 251,042,404 | |||||||||||||
Shares redeemed |
(10,364,635 | ) | 88,943,239 | (18,689,664 | ) | (167,665,085 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase in shares outstanding |
444,212 | $ | 4,465,561 | 8,919,716 | $ | 83,377,319 | ||||||||||
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|
|
|
|
|
|
|
(4) | Management Fees and Other Transactions with Affiliates |
Management fees paid to Freedom Funds were in accordance with the investment advisory agreement with the Fund which provides for an annual fee equivalent to 0.5% of the net assets of the Fund. Freedom Funds pays all expense associated with advertising, marketing, and distributing the Funds shares and serves as the transfer agent, dividend disbursing agent, and registrar for the Fund. Freedom Funds provided certain transfer agency and shareholder services as part of the management fee arrangement for the period ended March 31, 2023. Transfer agency expenses on the Statement of Operations represent direct expenses charged to the Fund by third parties.
Crest Insurance, an affiliate of the investment adviser, acted as agent for the Fidelity Bond and the Errors and Omissions insurance policy maintained by the Fund and as a result received compensation in the form of commissions. The policies were provided by Travelers Insurance Company and all the commissions referred to above were paid by Travelers. Crest Insurance received no compensation directly from the assets of the Fund.
The Fund does not have any Trustees who are affiliated with the Adviser or Distributor. The Board of Trustees appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. The Fund does not reimburse the Adviser for any compensation or fees associated with the Chief Compliance Officer.
27
Colorado BondShares
A Tax-Exempt Fund
Notes to Financial Statements (unaudited) (Continued)
(5) | Custody Credits |
Expenses paid indirectly by the Fund represent earnings credits on cash balances maintained with the Funds custodian bank, UMB Bank, N.A. The earnings credits resulted in offsetting custodian fees of $43,587 for the period ended March 31, 2023.
(6) | Indemnification |
From time to time the Fund may be involved in certain disputes and legal actions arising in the ordinary course of its business. While it is not feasible to predict or determine the outcome of these proceedings, in managements opinion, based on a review with legal counsel, none of these disputes and legal actions is expected to have a material impact on its financial position or results of operations. However, litigation is subject to inherent uncertainties, and an adverse result in these matters may arise from time to time that may harm the Funds business.
In the normal course of business, the Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Funds maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
(7) | Purchase Accrued Interest |
Purchase accrued interest is typically a component of a municipal bond purchase and is paid on settlement date. The accrual period begins on the last interest payment date (or original issue date) and runs through the day immediately preceding the settlement date. The Fund has purchased three bonds from the Meadows Metropolitan Districts No. 1, 2 and 7 with an aggregate balance of purchase accrued of $90,436,317 (98.1% of the March 31, 2023 balance of $92,156,671). Approximately $230,017,591 of additional interest has accrued on the purchase accrued interest since its purchase in 2007. This additional accrued interest has been fair valued in accordance with ASC 820 at approximately $94,492,061 and is included in other assets net of liabilities in the Schedule of Investments. This amount bears interest at the rate of 7.999% and will be received over an uncertain period of years. The value of the Meadows bonds is contained within three separate line items of the financial statements which all relate to a single set of bonds that cannot be sold separately.
(8) | Litigation |
The Fund is periodically involved in various legal proceedings. As of March 31, 2023, the Fund has a litigation payable of $249,930 for all pending litigation matters primarily for the purpose of paying lawyer fees. Possible additional amounts cannot be currently estimated but will be set aside as needed. Although there can be no assurances, based on information available, management believes that it is probable that the ultimate outcome of the action described below and other matters that are pending or threatened will not have a material effect on the Funds financial condition.
28
Colorado BondShares
A Tax-Exempt Fund
Notes to Financial Statements (unaudited) (Continued)
Marin | Metropolitan District LTD Tax G.O. Series 2008 Bond |
The Fund is the beneficial owner of bonds issued in 2008 (the Bonds) by Marin Metropolitan District (the District) as described more fully in the Funds most recent quarterly schedule of portfolio holdings for the period ended December 31, 2022 on Form NPORT-P filed with the Securities and Exchange Commission (SEC) on March 1, 2023. The Bonds were issued in 2008 pursuant to a trust indenture (the Trust Indenture) between the District, as issuer and UMB Bank, N.A. (UMB), as trustee (the Trustee). The original principal amount of Bonds was $30,485,000. The current principal amount of the Bonds is $17,485,000. The valuation of these Bonds as of March 31, 2023 is set forth in the schedule of investments.
On about June 24, 2022, the District filed an Amended Complaint for Declaratory and Injunctive Relief (the Complaint) against the Fund and the Trustee with the District Court, Arapahoe County, Colorado (the Court). The Complaint also names Century at Landmark, LLC, a Colorado limited liability company (Century) as an Interested Party in the Complaint on the grounds that Century is the owner of the real property remaining in the District. In the Complaint, the District has asserted a single claim for relief for declaratory judgment. In essence, based on the rulings in Landmark Towers Association, Inc. v. UMB Bank, N.A. and Colorado BondShares (District Court, Arapahoe County, Colorado Case No. 11CV1076) (the Landmark Litigation), the District has requested that the Court declare that the Fund and the Trustee cannot compel the District to impose a tax levy on Centurys parcel of real property within the District and that, further, the Court enjoin the Fund and the Trustee from attempting to compel the District to impose a levy on Centurys parcel of real property within the District. In response, the Fund and the Trustee filed Amended Counterclaims for breach of the Districts resolution authorizing public debt in accordance with, and as required by, the Colorado Constitution (the Bond Resolution), declaratory judgment for breach of the Bond Resolution, declaratory judgment that the District has violated Colo. Const. art. XI, section 6 and the Bond Resolution, breach of the Trust Indenture, declaratory judgment that the District has violated the Trust Indenture, promissory estoppel and unjust enrichment.
On or about November 17, 2022, the District filed a Motion for Summary Judgment and Permanent Injunction (MSJ). In response, the Fund and UMB submitted two filings to the Court: (1) a Motion Pursuant to C.R.C.P. 56(f) to Deny or Continue the MSJ (Rule 56(f) Motion) on the grounds that the MSJ was premature and that additional discovery was required in order to respond to the MSJ; and (2) notwithstanding the need for additional discovery, an Opposition to the Districts MSJ. On or about January 11, 2023, the Court granted the Rule 56(f) Motion, ruling that additional discovery should be allowed, and that Defendants are allowed ninety (90) days from the date of this order to file an amended Opposition to the Districts MSJ. Since the Courts Order granting the Rule 56(f) Motion, the Parties have been engaged in additional discovery relevant to the Parties claims and defenses, with the Districts deposition pursuant to C.R.C.P. 30(b)(6) scheduled for April 12, 2023. On or about March 23, 2023, the District filed a Supplemental Motion for Summary Judgment (Supplemental MSJ), which sought summary judgment on the Amended Counterclaims, which were filed by the Fund and UMB after the Districts initial MSJ.
29
Colorado BondShares
A Tax-Exempt Fund
Notes to Financial Statements (unaudited) (Continued)
The initial trial date has been set for July 17, 2023. Based on several factors (including, among other things, discovery issues and difficulty securing the Districts cooperation in scheduling its deposition), the Fund and UMB have filed a Motion to Continue and Reset the Trial Date and Related Pretrial Deadlines, which is still pending before the Court. At this point, it is impossible to determine the direction, cost, duration or ultimate outcome of these matters.
(9) | Subsequent Events |
Management has evaluated the possibility of subsequent events in the Funds financial statements through the date of issuance. Management has determined that there are no material events that would require disclosure in the Funds financial statements through this date.
30
Other Information (unaudited)
Proxy Voting Record
The Fund does not invest in equity securities. Accordingly, there were no matters relating to a portfolio security considered during the 12 months ended June 30, 2022 with respect to which the Fund was entitled to vote. Applicable regulations require us to inform you that the foregoing proxy voting information is available on the SEC website at http://www.sec.gov or you may call us at 1-800-572-0069.
Quarterly Statement of Investments
The Fund files a complete statement of investments with the Securities and Exchange Commission for the first and third quarters for each fiscal year on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the Commissions website at http://www.sec.gov. The filed form may also be viewed and copied at the Commissions Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling 1-800-732-0330 or you may call us at 1-800-572-0069.
31
A Tax-Exempt Fund
SEMI-ANNUAL REPORT
March 31, 2023
ITEM 2. CODE OF ETHICS.
Not required in this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not required in this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not required in this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) Please see the Schedule of Investments contained in the Semi-Annual Report included under Item 1 of this Form N-CSR.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has not adopted procedures by which shareholders may recommend nominees to the registrants board of trustees.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant has adopted and maintained disclosure controls and procedures (as such term is defined in Rules 30a-3(c) under the Investment Company Act of 1940, as amended (the Act)) that are designed to ensure that information required to be disclosed in the registrants reports under the Act, is recorded, processed, summarized and reported within the time periods required under the SECs rules and forms and that the information is accumulated and communicated to the registrants management, including its principal executive officer and principal financial officer to allow for timely decisions regarding required disclosure.
As required by Rule 30a-3(b) of the Act, the registrant carried out an evaluation under the supervision and with the participation of its management, including its principal executive officer and principal financial officer, of the effectiveness of the design and operation of the registrants disclosure controls and procedures within the 90-day period prior to the filing date of this report. Based on the foregoing, the registrants principal executive officer and principal financial officer have concluded that the registrants disclosure controls and procedures were effective, as of that date.
(b) There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(2)(i) |
(99.302) Interim Presidents (Principal Executive Officer) Section 302 Certification |
(a)(2)(ii) |
(99.302) Interim Treasurers (Principal Financial Officer) Section 302 Certification |
(a)(3) Not applicable. |
(b) |
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.
Colorado BondShares A Tax-Exempt Fund |
/s/ George N. Donnelly |
George N. Donnelly, |
Interim President, Secretary and Treasurer Date: June 5, 2023 |
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.
/s/ George N. Donnelly |
George N. Donnelly, |
Interim President, Secretary and Treasurer (Principal Executive Officer and Principal Financial Officer) Date: June 5, 2023 |
EXHIBIT (a)(2)(i) |
99.302 CERT |
I, George N. Donnelly, certify that:
1. I have reviewed this report on Form N-CSR of Colorado BondShares A Tax-Exempt Fund;
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 registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: June 5, 2023
/s/ George N. Donnelly George N. Donnelly |
Interim President |
(Principal Executive Officer) |
EXHIBIT (a)(2)(ii) | 99.302 CERT |
I, George N. Donnelly, certify that:
1. I have reviewed this report on Form N-CSR of Colorado BondShares A Tax-Exempt Fund;
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 registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: June 5, 2023
/s/ George N. Donnelly George N. Donnelly |
Interim Treasurer |
(Principal Financial Officer) |
EXHIBIT (b) | 99.906 CERT |
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned hereby certifies in his capacity as Treasurer and President, respectively, of COLORADO BONDSHARES A TAX-EXEMPT FUND (the Fund), that:
(a) | The Form N-CSR of the Fund for the period ended March 31, 2023 (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Act of 1934, as amended; and |
(b) | the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Fund. |
SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN PROVIDED TO COLORADO BONDSHARES A TAX-EXEMPT FUND AND WILL BE RETAINED BY THE TRUST AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST.
Colorado BondShares A Tax-Exempt Fund
Date: June 5, 2023
/s/ George N. Donnelly |
George N. Donnelly |
Interim President and Treasurer |
(Principal Executive Officer and Principal Financial Officer) |
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