N-Q 1 e608434_nq-churchill.htm CHURCHILL TAX-FREE FUND OF KENTUCKY 3/32/2011 FORM N-Q Unassociated Document
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-5086

Churchill Tax-Free Trust
(Exact Name of Registrant as Specified in Charter)

380 Madison Avenue, Suite 2300
New York, New York  10017
(Address of Principal Executive Offices)(Zip Code)

Joseph P. DiMaggio, Chief Financial Officer and Treasurer
380 Madison Avenue, Suite 2300
New York, New York  10017
(Name and address of Agent for Service)

Registrant's Telephone Number, including Area Code: (212) 697-6666

Date of fiscal year end: December 31, 2010

Date of reporting period:  March 31, 2011

Item 1. Schedule of Investments.
 
 
 
 
 
CHURCHILL TAX-FREE FUND OF KENTUCKY
 SCHEDULE OF INVESTMENTS
March 31, 2011
(unaudited)
 
         
Rating
            
Principal
        
Moody's/
            
Amount
  
General Obligation Bonds (4.7%)
    
S&P
    
Value
    
(a)
                       
   
Bowling Green, Kentucky
                  
$ 500,000  
2.000%, 06/01/15
    
Aa2/AA-
     $ 504,385      
                           
     
Campbell County, Kentucky Public Project
                    
  1,625,000  
4.375%, 12/01/25 Syncora Guarantee, Inc. Insured
    
Aa2/NR
       1,626,040      
                           
     
Henderson County, Kentucky
                    
  330,000  
3.000%, 11/01/20
    
Aa3/NR
       315,183      
                           
     
Highland Heights, Kentucky
                    
  235,000  
4.500%, 12/01/25
    
A1/NR
       237,547      
  370,000  
4.600%, 12/01/27
    
A1/NR
       372,483      
  500,000  
5.125%, 12/01/38
    
A1/NR
       480,335      
                           
     
Kenton County, Kentucky Public Project
                    
  500,000  
4.625%, 04/01/34
    
Aa2/NR
       473,240      
                           
     
Lexington-Fayette Urban County, Kentucky
                    
  4,175,000  
4.250%, 05/01/23 NPFG Insured†
    
Aa2/AA
       4,241,174      
                           
     
Louisville & Jefferson County, Kentucky
                    
  955,000  
4.200%, 11/01/22 NPFG Insured
    
Aa1/AA+**
       973,517      
                           
     
Muhlenberg County, Kentucky G.O.
                    
  730,000  
4.500%, 04/01/28
    
A1/NR
       718,072      
                           
     
Wilder, Kentucky
                    
  1,090,000  
4.900%, 12/01/29 AGMC Insured
    
Aa3/AA+
       1,103,625      
                           
     
Total General Obligation Bonds
             11,045,601      
                           
     
Revenue Bonds (95.1%)
                    
                           
     
State Agencies (15.8%)
                    
                           
     
Kentucky Area Development District Financing
                    
  500,000  
5.000%, 12/01/23 LOC Wachovia Bank (pre-refunded)
    
NR/NR*
       526,010      
                           
     
Kentucky Asset & Liability Commission Federal Highway Notes
                    
  1,000,000  
5.000%, 09/01/22 Series A
    
Aa2/AA
       1,088,340      
                           
                           
     
Kentucky Asset & Liability Commission University of Kentucky Project
                    
  1,500,000  
4.500%, 10/01/22 NPFG FGIC Insured
    
Aa2/AA-
       1,529,295      
  500,000  
5.000%, 10/01/25 Series B
    
Aa2/AA-
       519,920      
  750,000  
5.000%, 10/01/26 Series B
    
Aa2/AA-
       775,590      
  1,000,000  
5.000%, 10/01/27 Series B
    
Aa2/AA-
       1,027,300      
                           
     
Kentucky Economic Development Finance Authority Louisville Arena Project
                    
  4,725,000  
5.750%, 12/01/28 AGMC Insured
    
Aa3/AA+
       4,847,047      
                           
     
Kentucky Infrastructure Authority
                    
  230,000  
5.000%, 06/01/21
    
Aa3/A+
       231,021      
 
 
 
 
 
     
Kentucky State Property and Buildings Commission
                  
  1,000,000  
5.000%, 11/01/17 AMBAC Insured
  
Aa3/A+
       1,064,980      
  6,000,000  
5.250%, 10/01/18
  
Aa3/A+
       6,014,640      
  1,925,000  
5.000%, 10/01/19
  
Aa3/A+
       1,929,331      
  3,000,000  
5.000%, 11/01/19 AGMC Insured
  
Aa3/AA+
       3,120,540      
  1,020,000  
5.000%, 11/01/20
  
Aa3/A+
       1,088,105      
  1,375,000  
5.375%, 11/01/23
  
Aa3/A+
       1,462,313      
  2,820,000  
5.750%, 04/01/24 Project 91
  
Aa3/A+
       3,024,112      
  2,800,000  
5.250%, 02/01/28 AGMC Insured
  
Aa3/AA+
       2,861,012      
  750,000  
5.500%, 11/01/28
  
Aa3/A+
       777,675      
  2,500,000  
5.000%, 02/01/29 AGMC Insured
  
Aa3/AA+
       2,482,350      
  2,625,000  
5.750%, 04/01/29 Project 91
  
Aa3/A+
       2,752,523      
                         
     
Total State Agencies
           37,122,104      
                         
     
County Agencies (2.6%)
                  
                         
     
Jefferson County, Kentucky Capital Projects
                  
  1,575,000  
4.250%, 06/01/23 AGMC Insured
  
Aa2/NR***
       1,579,158      
  1,640,000  
4.375%, 06/01/28 AGMC Insured
  
Aa2/NR***
       1,545,077      
                         
     
Kentucky Association of Counties Finance Corp. Financing Program Revenue
                  
  1,145,000  
4.250%, 02/01/24
  
NR/A+
       1,108,600      
                         
     
Kentucky Association of Counties Finance Corp. Financing Program Revenue
                  
  315,000  
5.375%, 02/01/27
  
NR/A+
       318,931      
  330,000  
5.375%, 02/01/28
  
NR/A+
       331,597      
                         
     
Lexington-Fayette Urban County, Kentucky Public Facilities Revenue
                  
  500,000  
4.125%, 10/01/23 NPFG Insured
  
Aa2/NR
       493,510      
  500,000  
4.250%, 10/01/26 NPFG Insured
  
Aa2/NR
       478,090      
                         
     
Warren County, Kentucky Justice Center
                  
  365,000  
4.300%, 09/01/22 NPFG Insured
  
Aa2/NR
       368,048      
                         
     
Total County Agencies
           6,223,011      
                         
     
Colleges and Universities (5.5%)
                  
                         
     
Berea, Kentucky Educational Facilities (Berea College)
                  
  1,000,000  
4.125%, 06/01/25
  
Aaa/NR
       1,008,510      
                         
     
Boyle County, Kentucky College Refunding & Improvement
                  
  1,035,000  
4.500%, 06/01/22 CIFG Insured
     A3/A-       1,066,930      
  200,000  
4.625%, 06/01/24 CIFG Insured
     A3/A-       205,104      
                           
     
Louisville & Jefferson County, Kentucky University of Louisville
                    
  525,000  
5.000%, 06/01/20 AMBAC Insured
  
NR/NR*
       545,501      
                           
     
Murray State University Project, Kentucky General Receipts Revenue
                    
  745,000  
4.500%, 09/01/23 AMBAC Insured
  
Aa2/A+
       740,076      
                           
     
University of Kentucky General Receipts
                    
  885,000  
4.500%, 10/01/22 Syncora Guarantee, Inc. Insured
  
Aa2/AA-
       902,673      
  1,545,000  
4.500%, 10/01/23 Syncora Guarantee, Inc. Insured
  
Aa2/AA-
       1,565,997      
  1,625,000  
4.500%, 10/01/25 Syncora Guarantee, Inc. Insured
  
Aa2/AA-
       1,623,278      
  1,010,000  
4.500%, 10/01/26 Syncora Guarantee, Inc. Insured
  
Aa2/AA-
       998,890      
                           
     
Western Kentucky University Revenue General Receipts
                    
  2,000,000  
4.200%, 09/01/25 Series A NPFG Insured
  
Aa2/A+
       1,880,140      
  2,475,000  
4.200%, 09/01/26 Series A NPFG Insured
  
Aa2/A+
       2,281,975      
                           
     
Total Colleges and Universities
             12,819,074      
 
 
 
 
 
     
Hospitals (12.2%)
                    
                           
     
Jefferson County, Kentucky Health Facilities, Jewish Healthcare
                    
  1,715,000  
5.650%, 01/01/17 AMBAC Insured
  
Baa1/A-
       1,720,231      
                           
     
Jefferson County, Kentucky Health Facilities University Hospital
                    
  1,050,000  
5.250%, 07/01/22 NPFG Insured
  
Baa1/BBB
       1,052,111      
                           
     
Jefferson County, Kentucky, Louisville Medical Center
                    
  2,200,000  
5.250%, 05/01/17
  
NR/A
       2,270,026      
  2,000,000  
5.500%, 05/01/22
  
NR/A
       2,063,300      
                           
     
Kentucky Economic Development Finance Authority, Baptist Healthcare System
                    
  2,170,000  
5.375%, 08/15/24
  
Aa3/NR***
       2,236,879      
                           
     
Kentucky Economic Development Finance Authority, Catholic Health
                    
  2,000,000  
5.000%, 05/01/29
  
Aa2/AA
       1,962,600      
  1,000,000  
5.000%, 05/01/29
  
Aa2/AA
       981,300      
                           
     
Kentucky Economic Development Finance Authority, Hospital Facilities St. Elizabeth Healthcare
                    
  1,000,000  
5.500%, 05/01/39
  
NR/AA-***
       983,110      
                           
     
Kentucky Economic Development Finance Authority, Kings Daughter Medical Center
                    
  1,000,000  
5.000%, 02/01/30
   A1/A+     925,790      
                           
     
Louisville & Jefferson County, Kentucky, Louisville Medical Center
                    
  1,000,000  
5.000%, 06/01/18
  
NR/A
       1,028,420      
                           
     
Louisville & Jefferson County, Kentucky Metro Health, Jewish Hospital Revenue
                    
  1,250,000  
6.000%, 02/01/22
  
Baa1/A-
       1,268,588      
  1,800,000  
6.125%, 02/01/37
  
Baa1/A-
       1,764,378      
                           
     
Louisville & Jefferson County, Kentucky Metropolitan Government Health System, Norton
                    
  7,925,000  
5.000%, 10/01/26
  
NR/A-****
       7,279,826      
  3,600,000  
5.000%, 10/01/30
  
NR/A-****
       3,167,712      
                           
     
Total Hospitals
             28,704,271      
 
 
 
 
 
     
Housing (11.9%)
                    
                           
     
Kentucky Housing Corporation Housing Revenue
                    
  555,000  
4.200%, 01/01/17
  
Aaa/AAA
       558,646      
  50,000  
5.125%, 07/01/17
  
Aaa/AAA
       50,027      
  470,000  
4.800%, 01/01/18 AMT
  
Aaa/AAA
       472,651      
  285,000  
4.250%, 01/01/18
  
Aaa/AAA
       285,849      
  575,000  
4.800%, 07/01/18 AMT
  
Aaa/AAA
       578,243      
  180,000  
4.250%, 07/01/18
  
Aaa/AAA
       180,531      
  900,000  
4.800%, 07/01/20 AMT
  
Aaa/AAA
       902,682      
  1,100,000  
5.350%, 01/01/21 AMT FNMA collateralized
  
Aaa/AAA
       1,100,726      
  6,025,000  
5.450%, 07/01/22 AMT
  
Aaa/AAA
       6,041,328      
  4,565,000  
5.250%, 07/01/22 AMT
  
Aaa/AAA
       4,572,487      
  245,000  
5.200%, 07/01/22
  
Aaa/AAA
       245,747      
  415,000  
5.100%, 07/01/22 AMT
  
Aaa/AAA
       415,212      
  2,570,000  
4.800%, 07/01/22 AMT
  
Aaa/AAA
       2,550,005      
  1,635,000  
5.000%, 01/01/23 AMT
  
Aaa/AAA
       1,637,485      
  665,000  
5.000%, 07/01/24 FHA Insured
  
Aaa/AAA
       676,086      
  4,140,000  
5.200%, 07/01/25 AMT
  
Aaa/AAA
       4,123,192      
  600,000  
4.750%, 07/01/26
  
Aaa/AAA
       591,006      
  230,000  
5.375%, 07/01/27
  
Aaa/AAA
       230,582      
  315,000  
4.850%, 07/01/29
  
Aaa/AAA
       310,477      
  430,000  
5.550%, 07/01/33
  
Aaa/AAA
       430,082      
  595,000  
5.150%, 07/01/39
  
Aaa/AAA
       590,311      
                           
     
Kentucky Housing Multifamily Mortgage Revenue
                    
  1,325,000  
5.000%, 06/01/23 AMT
  
NR/NR*
       1,298,911      
                           
     
Total Housing
             27,842,266      
                           
     
School Building Revenue (25.2%)
                    
                           
     
Barren County, Kentucky School Building Revenue
                    
  1,265,000  
4.250%, 08/01/25 CIFG Insured
  
Aa3/NR
       1,239,662      
  1,670,000  
4.375%, 08/01/26 CIFG Insured
  
Aa3/NR
       1,639,723      
                           
     
Boone County, Kentucky School District Finance Corp. School Building Revenue
                    
  140,000  
4.750%, 06/01/20 AGMC Insured (pre-refunded)
  
Aa3/AA+
       147,046      
  1,000,000  
4.125%, 08/01/22 Syncora Guarantee, Inc. Insured
  
Aa3/NR
       990,580      
  1,580,000  
4.500%, 08/01/23 AGMC Insured
  
Aa3/NR
       1,598,549      
  1,250,000  
4.125%, 03/01/25 AGMC Insured
  
Aa3/NR
       1,158,025      
                           
     
Bullitt County, Kentucky School District Finance Corp.
                    
  200,000  
4.300%, 10/01/21 NPFG Insured
  
Aa3/NR
       202,780      
  2,455,000  
4.500%, 10/01/22 NPFG Insured
  
Aa3/NR
       2,493,789      
  2,590,000  
4.500%, 10/01/23 NPFG Insured
  
Aa3/NR
       2,619,163      
  1,145,000  
4.500%, 04/01/27
  
Aa3/NR
       1,137,260      
  1,200,000  
4.500%, 04/01/28
  
Aa3/NR
       1,177,632      
                           
     
Christian County, Kentucky School District Finance Corp.
                    
  855,000  
4.000%, 08/01/20 Syncora Guarantee, Inc. Insured
  
Aa3/NR
       857,317      
  905,000  
4.000%, 08/01/21 Syncora Guarantee, Inc. Insured
  
Aa3/NR
       908,882      
  750,000  
4.125%, 08/01/23 Syncora Guarantee, Inc. Insured
  
Aa3/NR
       747,450      
  1,590,000  
4.125%, 08/01/24 Syncora Guarantee, Inc. Insured
  
Aa3/NR
       1,561,921      
                           
     
Daviess County, Kentucky School District Finance Corp.
                    
  200,000  
5.000%, 06/01/24
  
Aa3/NR
       204,968      
                           
     
Fayette County, Kentucky School District Finance Corp.
                    
  5,000,000  
4.250%, 04/01/23 AGMC Insured
  
Aa3/AA+
       5,014,550      
  4,335,000  
4.375%, 05/01/26 AGMC Insured
  
Aa3/AA+
       4,229,660      
                           
     
Floyd County, Kentucky School Finance Corporation School Building
                    
  1,320,000  
4.000%, 03/01/23 Syncora Guarantee, Inc. Insured
  
Aa3/NR
       1,312,542      
  1,255,000  
4.125%, 03/01/26 Syncora Guarantee, Inc. Insured
  
Aa3/NR
       1,216,183      
                           
     
Fort Thomas, Kentucky Independent School District Finance Corp.
                    
  785,000  
4.375%, 04/01/21
  
Aa3/NR
       797,482      
 
 
 
 
 
  610,000  
4.375%, 04/01/25
  
Aa3/NR
       597,800      
                           
     
Franklin County, Kentucky School District Finance Corp.
                    
  1,000,000  
5.000%, 04/01/24
  
Aa3/NR
       1,023,660      
                           
     
Graves County, Kentucky School Building Revenue
                    
  1,260,000  
5.000%, 06/01/22
  
Aa3/NR
       1,295,948      
  1,320,000  
5.000%, 06/01/23
  
Aa3/NR
       1,350,492      
                           
     
Jefferson County, Kentucky School District Finance Corp. School Building
                    
  150,000  
5.000%, 04/01/20 AGMC Insured (pre-refunded)
  
Aa2/AA+
       151,500      
  1,360,000  
4.250%, 06/01/21 AGMC Insured
  
Aa3/AA+
       1,376,470      
                           
     
Kenton County, Kentucky School District Finance Corp.
                    
  445,000  
4.300%, 04/01/22 CIFG Insured
  
Aa3/NR
       446,980      
  4,250,000  
5.000%, 06/01/22 NPFG Insured
  
Aa3/NR
       4,450,345      
  590,000  
4.250%, 10/01/22 AGMC Insured
  
Aa3/NR
       594,307      
  750,000  
4.375%, 04/01/24 CIFG Insured
  
Aa3/NR
       745,223      
  325,000  
4.400%, 04/01/26 CIFG Insured
  
Aa3/NR
       316,982      
                           
     
Larue County, Kentucky School District Finance Corp.
                    
  270,000  
4.500%, 07/01/21 NPFG Insured
  
Aa3/NR
       276,566      
  470,000  
4.500%, 07/01/22 NPFG Insured
  
Aa3/NR
       480,312      
  785,000  
4.500%, 07/01/23 NPFG Insured
  
Aa3/NR
       797,772      
                           
     
Laurel County, Kentucky School District Finance Corp.
                    
  300,000  
4.000%, 06/01/16 AGMC Insured
  
Aa3/NR
       324,048      
                           
     
Magoffin County, Kentucky School District
                    
  375,000  
4.250%, 08/01/23 AMBAC Insured
  
Aa3/NR
       376,755      
  475,000  
4.250%, 08/01/25 AMBAC Insured
  
Aa3/NR
       467,961      
                           
     
Ohio County, Kentucky School Building Revenue
                    
  790,000  
4.500%, 05/01/24
  
Aa3/NR
       801,929      
  325,000  
4.500%, 05/01/25
  
Aa3/NR
       327,340      
                           
     
Oldham County, Kentucky School District Finance Corp.
                    
  500,000  
5.000%, 05/01/19 NPFG Insured
  
Aa3/NR
       523,435      
  1,000,000  
4.500%, 09/01/27 NPFG Insured
  
Aa3/NR
       956,310      
                           
     
Owensboro, Kentucky Independent School District Finance Corp. School Building Revenue
                    
  390,000  
4.375%, 09/01/24
  
Aa3/NR
       395,534      
                           
     
Pendleton County, Kentucky School District Finance Corp. School Building Revenue
                    
  730,000  
4.000%, 02/01/23 NPFG Insured
  
Aa3/NR
       715,802      
                           
     
Pike County, Kentucky School Building Revenue
                    
  1,355,000  
4.375%, 10/01/26 NPFG Insured
  
Aa3/NR
       1,330,312      
                           
     
Scott County, Kentucky School District Finance Corp.
                    
  1,115,000  
4.200%, 01/01/22 AMBAC Insured
  
Aa3/NR
       1,133,464      
  1,955,000  
4.250%, 01/01/23 AMBAC Insured
  
Aa3/NR
       1,981,217      
  1,560,000  
4.300%, 01/01/24 AMBAC Insured
  
Aa3/NR
       1,578,190      
  1,000,000  
4.250%, 02/01/27 AGMC Insured
  
Aa3/NR
       952,260      
                           
     
Spencer County, Kentucky School District Finance Corp., School Building Revenue
                    
  1,000,000  
4.500%, 08/01/27 AGMC Insured
  
Aa3/NR
       1,003,770      
                           
     
Warren County, Kentucky School District Finance Corp.
                    
  295,000  
4.125%, 02/01/23 NPFG Insured
  
Aa3/NR
       294,301      
  1,000,000  
4.375%, 04/01/27 AGMC Insured
  
Aa3/NR
       933,840      
                           
     
Total Schools
             59,255,989      
                           
 
 
 
 
 
     
Transportation (10.5%)
                    
                           
     
Kenton County, Kentucky Airport Board Airport Revenue
                    
  1,300,000  
5.000%, 03/01/23 NPFG Insured AMT
   A3/A-       1,279,330      
                           
     
Kentucky State Turnpike Authority Revenue
                    
  3,000,000  
4.450%, 07/01/22 Series B
  
Aa2/AA+
       3,053,130      
  3,500,000  
5.000%, 07/01/25
  
Aa2/AA+
       3,643,570      
  625,000  
5.000%, 07/01/25 AMBAC Insured
  
Aa2/AA+
       639,319      
  2,750,000  
5.000%, 07/01/27
  
Aa2/AA+
       2,820,290      
  1,100,000  
5.000%, 07/01/28
  
Aa2/AA+
       1,121,329      
                           
     
Louisville, Kentucky Regional Airport Authority
                    
  1,000,000  
5.250%, 07/01/23 AGMC Insured AMT
  
Aa3/AA+
       1,013,130      
  2,610,000  
5.000%, 07/01/24 AMBAC Insured AMT
   A1/A+     2,550,518      
                           
     
Louisville & Jefferson County Regional Airport, Kentucky
                    
  1,000,000  
5.250%, 07/01/18 AGMC Insured AMT
  
Aa3/AA+
       1,027,750      
  2,000,000  
5.250%, 07/01/20 AGMC Insured AMT
  
Aa3/AA+
       2,031,040      
  1,370,000  
5.250%, 07/01/21 AGMC Insured AMT
  
Aa3/AA+
       1,387,481      
  3,390,000  
5.250%, 07/01/22 AGMC Insured AMT
  
Aa3/AA+
       3,421,764      
  275,000  
5.375%, 07/01/23 AGMC Insured AMT
  
Aa3/AA+
       276,529      
  500,000  
5.000%, 07/01/25 NPFG Insured AMT
   A1/A+     476,445      
                           
     
Total Transportation
             24,741,625      
                           
     
Utilities (11.4%)
                    
                           
     
Campbell & Kenton Counties, Kentucky (Sanitation District) Revenue
                    
  1,695,000  
4.300%, 08/01/24 NPFG Insured
  
Aa2/AA
       1,707,746      
  2,370,000  
4.000%, 08/01/27
  
Aa2/AA
       2,206,186      
  300,000  
4.300%, 08/01/27 NPFG Insured
  
Aa2/AA
       293,100      
  1,450,000  
4.300%, 08/01/28 NPFG Insured
  
Aa2/AA
       1,396,684      
                           
     
Carroll County, Kentucky Environmental Facilities Revenue (Kentucky Utilities) AMT
                    
  1,500,000  
5.750%, 02/01/26 AMBAC Insured
     A2/A-       1,548,660      
                           
     
Kentucky Board Corp. Financing Program
                    
  915,000  
5.125%, 02/01/28††
  
NR/A+
       894,266      
                           
     
Kentucky Rural Water Finance Corp.
                    
  205,000  
4.250%, 08/01/19 NPFG Insured
  
Baa1/AA-
       208,704      
  595,000  
5.000%, 02/01/20 NPFG Insured
  
Baa1/AA-
       611,505      
  210,000  
4.250%, 08/01/20 NPFG Insured
  
Baa1/AA-
       212,686      
  200,000  
4.375%, 08/01/22 NPFG Insured
  
Baa1/AA-
       203,650      
  240,000  
4.500%, 08/01/23 NPFG Insured
  
Baa1/AA-
       244,421      
  200,000  
4.500%, 02/01/24 NPFG Insured
  
Baa1/AA-
       203,804      
  255,000  
4.500%, 08/01/24 NPFG Insured
  
Baa1/AA-
       258,723      
  355,000  
4.600%, 02/01/25
  
NR/AA-
       359,544      
  290,000  
4.500%, 08/01/27 NPFG Insured
  
Baa1/AA-
       288,988      
  245,000  
4.600%, 08/01/28 NPFG Insured
  
Baa1/AA-
       243,540      
  315,000  
4.625%, 08/01/29 NPFG Insured
  
Baa1/AA-
       310,577      
                           
     
Kentucky State Municipal Power Agency, Prairie St. Project
                    
  1,000,000  
5.000%, 09/01/23 AGMC Insured
  
Aa3/AA+
       1,045,770      
                           
     
Louisville & Jefferson County, Kentucky Metropolitan Sewer District
                    
  2,380,000  
4.250%, 05/15/20 AGMC Insured
  
Aa3/AA+
       2,447,711      
  2,510,000  
4.250%, 05/15/21 AGMC Insured
  
Aa3/AA+
       2,574,658      
  1,500,000  
5.000%, 05/15/26 AGMC Insured
  
Aa3/AA+
       1,545,390      
                           
     
Northern Kentucky Water District
                    
  660,000  
5.000%, 02/01/23 NPFG FGIC Insured
  
Aa3/NR
       670,184      
  1,825,000  
6.000%, 02/01/28 AGMC Insured
  
Aa3/NR
       2,008,358      
                           
     
Owensboro, Kentucky Electric and Power
                    
  1,000,000  
5.000%, 01/01/21 AGMC Insured
  
Aa3/AA+
       1,117,630      
 
 
 
 
 
     
Owensboro, Kentucky Water Revenue
                    
  500,000  
5.000%, 09/15/27 AGMC Insured
  
Aa3/NR
       520,790      
                           
     
Owensboro-Daviess County, Kentucky Regional Water Resource Agency Wastewater Refunding & Improvement Revenue
                    
  930,000  
4.375%, 01/01/27 Series A Syncora Guarantee, Inc. Insured
  
NR/AA-
       871,466      
                           
     
Trimble County, Kentucky Environmental Facilities
                    
  3,000,000  
4.600%, 06/01/33 AMBAC Insured
   A2/A-       2,690,340      
                           
     
Total Utilities
             26,685,081      
                           
     
Total Revenue Bonds
             223,393,421      
                           
     
Total Investments (cost $234,439,034-note b)
     99.8 %     234,439,022      
                           
     
Other assets less liabilities
     0.2       525,427      
                           
     
Net Assets
     100.0 %   $ 234,964,449      
                           
     
* Any security not rated (NR) by any of the approved credit rating services has been determined by the Investment Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a rating service.
              
                           
     
 † Security pledged as collateral for the Fund's delayed delivery or when - issued commitments.
              
                           
     
 †† Security purchased on a delayed delivery or when-issued basis.
              
                           
     
Fitch ratings
                    
     
**    AAA
                    
     
***   AA
                    
     
**** A
                    
                           
         
Percent of
            
     
Portfolio Distribution By Quality Rating
  
Investments †
            
                           
     
Aaa of Moody's or AAA of S&P or Fitch
     12.2 %  
 
      
     
Pre-refunded bonds †† / Escrowed to Maturity bonds
     0.3              
     
Aa of Moody's or AA of S&P or Fitch
     71.0              
     
 A of Moody's or S&P or Fitch
     15.3              
     
Baa of Moody's or BBB of S&P
     0.4              
     
Not rated*
     0.8              
            100.0 %  
 
      
                           
     
† Calculated using the highest rating of the three rating services.
              
                           
     
†† Pre-refunded bonds are bonds for which U.S. Government Obligations have been placed in escrow to retire the bonds at their earliest call date.
              
 
 
 
 
 
     
               PORTFOLIO ABBREVIATIONS:
                    
     
AGMC - Assured Guaranty Municipal Corp.
                    
     
AMBAC - American Municipal Bond Assurance Corp.
                    
     
AMT - Alternative Minimum Tax
                    
     
CIFG - CDC IXIS Financial Guaranty
                    
     
FGIC - Financial Guaranty Insurance Co.
                    
     
FHA - Federal Housing Administration
                    
     
FNMA - Federal National Mortgage Association
                    
     
LOC - Letter of Credit
                    
     
NPFG - National Public Finance Guarantee
                    
     
NR - Not Rated
                    
                           
     
See accompanying notes to financial statements.
                    
 
 
 
 
 
CHURCHILL TAX-FREE FUND OF KENTUCKY
NOTES TO FINANCIAL STATEMENTS
March 31, 2011
(unaudited)
 
(a) Securities valuation policies and other investment related disclosures are hereby incorporated by reference in the annual and semi-annual reports previously filed with the Securities and Exchange Commission on Form N-CSR.
  
       
(b) At March 31, 2011, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $234,322,283 amounted to of $116,739, which consisted of aggregate gross unrealized appreciation of $3,311,286 and aggregate gross unrealized depreciation of $3,194,547.
  
       
(c) Fair Value Measurements: The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s investments and are summarized in the following fair value hierarchy:
  
       
Level 1 – Unadjusted quoted prices in inactive markets for identical assets or liabilities that the Fund has the ability to access.
  
Level 2 – Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
  
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
  
       
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
  
       
The following is a summary of the valuation inputs, representing 100% of the Fund’s investments, used to value the Fund’s net assets as of March 31, 2011:
  
       
 Valuation Inputs
    
Investments in Securities
  
 Level 1 – Quoted Prices
   $ -  
 Level 2 – Other Significant Observable Inputs- Municipal Bonds+
     234,439,022  
 Level 3 – Significant Unobservable Inputs
     -  
 Total
   $ 234,439,022  
 +See schedule of investments for a detailed listing of securities.
 
 
 
 

Item 2. Controls and Procedures.

(a)           The Fund's principal financial and executive officers have evaluated the Fund's disclosure controls and procedures within 90 days of this filing and have concluded that the Fund's disclosure controls and procedures were effective, as of this date, in ensuring that information required to be disclosed by the Fund in this Form N-Q was timely recorded, processed, summarized and reported.

(b)           The Fund's principal chief financial and executive officers are aware of no change in the Fund's internal control over financial reporting that occurred during the Fund's latest fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting.

Item 3. Exhibits.

Filed as exhibits as part of this Form are separate certifications for each principal financial and executive officer of the registrant as required by Rule 30a-2(a) under the Act(17 CFR 270.30a-2(a)).
 
 
 
 
 
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.

CHURCHILL TAX-FREE TRUST
    
     
       
By:
/s/ Diana P. Herrmann
    
 
Diana P. Herrmann
    
 
President and Trustee
    
 
May 23, 2011
    

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

       
By:
/s/ Diana P. Herrmann
    
 
Diana P. Herrmann
    
 
President and Trustee
    
 
May 23, 2011
    
       
       
By:
/s/ Joseph P. DiMaggio
    
 
Chief Financial Officer and Treasurer
    
 
May 23, 2011