N-Q 1 e610212_nq-churchill.htm CHURCHILL TAX-FREE TRUST 9/30/12 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, 2011

Date of reporting period: September 30, 2012
 
Item 1. Schedule of Investments.
 
 
 
 
 
CHURCHILL TAX-FREE FUND OF KENTUCKY
 SCHEDULE OF INVESTMENTS
September 30, 2012
(unaudited)

       
Rating
              
Principal
      
Moody's/
              
Amount
  
General Obligation Bonds (4.9%)
  
S&P
    
Value
    
(a)
  
                       
   
Bowling Green, Kentucky
                  
$ 500,000  
2.000%, 06/01/15
  
Aa2/AA-
     $ 516,705          
                             
     
Campbell County, Kentucky Public Project
                      
  1,625,000  
4.375%, 12/01/25 Syncora Guarantee, Inc. Insured
  
Aa2/NR
       1,737,970          
                             
     
Henderson County, Kentucky
                      
  330,000  
3.000%, 11/01/20
  
Aa3/NR
       355,776          
                             
     
Highland Heights, Kentucky
                      
  500,000  
5.125%, 12/01/38
  
A1/NR
       560,495          
                             
     
Lexington-Fayette Urban County, Kentucky
                      
  4,175,000  
4.250%, 05/01/23 NPFG Insured
  
Aa2/AA
       4,578,848          
                             
     
Louisville & Jefferson County, Kentucky
                      
  955,000  
4.200%, 11/01/22 NPFG Insured
  
Aa1/AA+**
       1,049,459          
                             
     
Muhlenberg County, Kentucky
                      
  730,000  
4.500%, 04/01/28
  
A1/NR
       824,418          
                             
     
City of Owensboro, Kentucky Refunding and Improvement
                      
  1,355,000  
4.000%, 06/01/30
  
Aa3/NR
       1,471,422          
                             
     
Warren County, Kentucky Unlimited Tax
                      
  615,000  
4.000%, 06/01/25
  
Aa2/AA-
       692,035          
  635,000  
4.000%, 06/01/26
  
Aa2/AA-
       708,749          
  660,000  
4.000%, 06/01/27
  
Aa2/AA-
       732,310          
     
Total General Obligation Bonds
           13,228,187          
                             
     
Revenue Bonds (92.9%)
                      
                             
     
State Agencies (12.2%)
                      
                             
     
Kentucky Asset & Liability Commission Federal Highway Notes
                      
  1,000,000  
5.000%, 09/01/22 Series A
  
Aa2/AA
       1,219,300          
                             
     
Kentucky Asset & Liability Commission University of Kentucky Project
                      
  1,500,000  
4.500%, 10/01/22 NPFG/ FGIC Insured
  
Aa2/AA-
       1,617,555          
  500,000  
5.000%, 10/01/25 Series B
  
Aa2/AA-
       569,175          
  750,000  
5.000%, 10/01/26 Series B
  
Aa2/AA-
       848,430          
  1,000,000  
5.000%, 10/01/27 Series B
  
Aa2/AA-
       1,127,210          
                             
     
Kentucky Bond Corp. Financing Program
                      
  915,000  
5.125%, 02/01/28
  
NR/AA-
       1,060,229          
                             
     
Kentucky Economic Development Finance Authority Louisville Arena Project
                      
  3,500,000  
5.750%, 12/01/28 AGMC Insured
  
Aa3/AA-
       3,863,265          
 
 
 
 
 
                             
     
Kentucky State Property and Buildings Commission
                      
  1,000,000  
5.000%, 11/01/17 AMBAC Insured
   A1/A+***       1,045,090          
  3,000,000  
5.000%, 11/01/19 AGMC Insured (pre-refunded)
  
Aa2/AA-
       3,011,250          
  1,020,000  
5.000%, 11/01/20
  
Aa3/A+
       1,204,528          
  1,375,000  
5.375%, 11/01/23
  
Aa3/A+
       1,614,374          
  2,820,000  
5.750%, 04/01/24 Project 91
   A1/A+       3,242,492          
  2,800,000  
5.250%, 02/01/28 AGMC Insured
  
Aa3/AA-
       3,237,332          
  750,000  
5.500%, 11/01/28
  
Aa3/A+
       871,530          
  2,500,000  
5.000%, 02/01/29 AGMC Insured
  
Aa3/AA-
       2,835,425          
  2,625,000  
5.750%, 04/01/29 Project 91
   A1/A+       2,993,865          
  2,000,000  
5.000%, 08/01/30 Project 100
  
Aa3/A+
       2,338,540          
                             
     
Total State Agencies
           32,699,590          
                             
     
County Agencies (5.8%)
                      
                             
     
Bracken County, Kentucky Public Properties Corp. Revenue Refunding - First Mortgage
                      
  1,110,000  
5.000%, 08/01/30
  
Aa3/NR
       1,298,844          
                             
     
Grant County, Kentucky Public Property Corp. Justice Center Project
                      
  1,000,000  
4.500%, 12/01/24
  
Aa3/NR
       1,098,280          
                             
     
Jefferson County, Kentucky Capital Projects
                      
  1,575,000  
4.250%, 06/01/23 AGMC Insured
  
Aa2/NR***
       1,715,065          
  1,950,000  
4.375%, 06/01/24 AGMC Insured
  
Aa2/NR***
       2,126,924          
  2,060,000  
4.375%, 06/01/26 Series A AGMC Insured
  
Aa2/NR***
       2,229,826          
  1,070,000  
4.375%, 06/01/27 Series A AGMC Insured
  
Aa2/NR***
       1,155,761          
  1,640,000  
4.375%, 06/01/28 AGMC Insured
  
Aa2/NR***
       1,765,460          
                             
     
Kentucky Association of Counties Finance Corp. Financing Program
                      
  1,145,000  
4.250%, 02/01/24
  
NR/AA-
       1,255,035          
  515,000  
4.000%, 02/01/25
  
NR/AA-
       563,194          
  315,000  
5.375%, 02/01/27
  
NR/AA-
       360,514          
  330,000  
5.375%, 02/01/28
  
NR/AA-
       376,652          
                             
     
Laurel County, Kentucky  Public Property Corp.  Justice Center Project
                      
  250,000  
4.625%, 03/01/28
  
Aa3/NR
       271,448          
                             
     
Lexington-Fayette Urban County, Kentucky Public Facilities Revenue
                      
  500,000  
4.125%, 10/01/23 NPFG Insured
  
Aa3/NR
       536,810          
  500,000  
4.250%, 10/01/26 NPFG Insured
  
Aa3/NR
       528,380          
                             
     
Warren County, Kentucky Justice Center
                      
  365,000  
4.300%, 09/01/22 NPFG Insured
  
Aa3/NR
       384,276          
                             
     
Total County Agencies
           15,666,469          
                             
     
Colleges and Universities (6.7%)
                      
                             
     
Berea, Kentucky Educational Facilities (Berea College)
                      
  1,000,000  
4.125%, 06/01/25
  
Aaa/NR
       1,052,120          
                             
     
Boyle County, Kentucky College Refunding & Improvement
                      
  1,035,000  
4.500%, 06/01/22 AGC Insured
  
Aa3/AA-
       1,135,074          
  200,000  
4.625%, 06/01/24 AGC Insured
  
Aa3/AA-
       219,414          
                             
     
Eastern Kentucky University General Receipts
                      
  1,250,000  
4.000%, 10/01/27
  
Aa3/A+
       1,357,138          
                             
     
Lexington-Fayette, Kentucky Urban County Government Transylvania University Project
                      
  1,390,000  
4.500%, 03/01/29
  
NR/A+
       1,546,139          
                             
     
Louisville & Jefferson County, Kentucky University of Louisville
                      
  525,000  
5.000%, 06/01/20 AMBAC Insured
  
NR/NR*
       560,810          
                             
     
Murray State University Project, Kentucky General Receipts Revenue
                      
  745,000  
4.500%, 09/01/23 AMBAC Insured
  
Aa3/A+
       813,443          
                             
     
University of Kentucky General Receipts
                      
  885,000  
4.500%, 10/01/22 Syncora Guarantee, Inc. Insured
  
Aa2/AA-
       971,314          
  1,545,000  
4.500%, 10/01/23 Syncora Guarantee, Inc. Insured
  
Aa2/AA-
       1,682,644          
  1,625,000  
4.500%, 10/01/25 Syncora Guarantee, Inc. Insured
  
Aa2/AA-
       1,745,250          
  1,010,000  
4.500%, 10/01/26 Syncora Guarantee, Inc. Insured
  
Aa2/AA-
       1,079,589          
  1,000,000  
5.000%, 09/01/30
  
Aa2/AA-
       1,181,930          
                             
     
Western Kentucky University Revenue General Receipts
                      
  2,000,000  
4.200%, 09/01/25 Series A NPFG Insured
  
Aa3/A+
       2,122,880          
  2,475,000  
4.200%, 09/01/26 Series A NPFG Insured
  
Aa3/A+
       2,617,758          
                             
     
Total Colleges and Universities
           18,085,503          
                             
     
Hospitals (12.5%)
                      
                             
     
Jefferson County, Kentucky Health Facilities University Hospital
                      
  1,050,000  
5.250%, 07/01/22 NPFG Insured
  
Baa2/BBB
       1,053,696          
                             
     
Jefferson County, Kentucky, Louisville Medical Center
                      
  2,200,000  
5.250%, 05/01/17
  
NR/A
       2,228,116          
  2,000,000  
5.500%, 05/01/22
  
NR/A
       2,025,420          
                             
     
Kentucky Economic Development Finance Authority, Baptist Healthcare System
                      
  4,795,000  
5.375%, 08/15/24
  
A1/NR***
       5,511,709          
  2,050,000  
5.250%, 08/15/46
  
A1/NR***
       2,288,231          
 
 
 
 
 
                             
     
Kentucky Economic Development Finance Authority, Catholic Health
                      
  1,000,000  
5.000%, 05/01/29
  
Aa2/AA
       1,044,120          
                             
     
Kentucky Economic Development Finance Authority, Hospital Facilities St. Elizabeth Healthcare
                      
  1,000,000  
5.500%, 05/01/39
  
NR/AA-***
       1,110,370          
                             
     
Kentucky Economic Development Finance Authority, Kings Daughter Medical Center
                      
  1,000,000  
5.000%, 02/01/30
   A1/A+       1,080,720          
                             
     
Lexington-Fayette Urban County Government, Kentucky Public Facilities Co Lease, Eastern State Hospital
                      
  1,500,000  
5.250%, 06/01/32
  
Aa3/A+
       1,718,730          
                             
     
Louisville & Jefferson County, Kentucky Louisville Medical Center
                      
  1,000,000  
5.000%, 06/01/18
  
NR/A
       1,028,570          
                             
     
Louisville & Jefferson County, Kentucky Metro Health, Jewish Hospital Revenue
                      
  1,250,000  
6.000%, 02/01/22 (pre-refunded)
  
#Aaa/NR
       1,273,700          
                             
     
Louisville & Jefferson County, Kentucky Metropolitan Government Health System, Norton
                      
  7,620,000  
5.000%, 10/01/26
  
NR/A-****
       8,101,051          
  1,600,000  
5.000%, 10/01/30
  
NR/A-****
       1,690,576          
                             
     
Louisville & Jefferson County, Kentucky Metropolitan Government Revenue Refunding, Catholic Health Initiatives
                      
  2,000,000  
5.000%, 12/01/30
  
Aa2/AA
       2,302,440          
                             
     
Warren County, Kentucky,  Warren County Community Hospital Corp.
                      
  680,000  
4.000%, 10/01/29
  
NR/A
       704,398          
  500,000  
5.000%, 10/01/33
  
NR/A
       548,635          
                             
     
Total Hospitals
           33,710,482          
                             
     
Housing (4.7%)
                      
                             
     
Kentucky Housing Corporation Housing Revenue
                      
  555,000  
4.200%, 01/01/17
  
Aaa/AAA
       564,890          
  470,000  
4.800%, 01/01/18 AMT
  
Aaa/AAA
       482,483          
  285,000  
4.250%, 01/01/18
  
Aaa/AAA
       289,691          
  575,000  
4.800%, 07/01/18 AMT
  
Aaa/AAA
       589,818          
  180,000  
4.250%, 07/01/18
  
Aaa/AAA
       182,867          
  615,000  
4.800%, 07/01/20 AMT
  
Aaa/AAA
       627,282          
  1,570,000  
4.800%, 07/01/22 AMT
  
Aaa/AAA
       1,633,240          
  1,635,000  
5.000%, 01/01/23 AMT
  
Aaa/AAA
       1,722,260          
  665,000  
5.000%, 07/01/24 FHA Insured
  
Aaa/AAA
       719,743          
  250,000  
3.625%, 01/01/25
  
Aaa/AAA
       262,128          
  900,000  
4.500%, 07/01/25
  
Aaa/AAA
       981,495          
  600,000  
4.750%, 07/01/26
  
Aaa/AAA
       637,560          
  315,000  
4.850%, 07/01/29
  
Aaa/AAA
       335,198          
  1,630,000  
4.600%, 07/01/32 AMT
  
Aaa/AAA
       1,728,892          
  540,000  
5.150%, 07/01/39
  
Aaa/AAA
       576,040          
                             
     
Kentucky Housing Multifamily Mortgage Revenue
                      
  1,325,000  
5.000%, 06/01/35 AMT
  
NR/NR*
       1,340,277          
                             
     
Total Housing
           12,673,864          
                             
     
School Building Revenue (23.4%)
                      
                             
     
Barren County, Kentucky School Building Revenue
                      
  1,265,000  
4.250%, 08/01/25 AGC Insured
  
Aa3/NR
       1,337,232          
  1,670,000  
4.375%, 08/01/26 AGC Insured
  
Aa3/NR
       1,769,148          
                             
     
Boone County, Kentucky School District Finance Corp. School Building Revenue
                      
  1,000,000  
4.125%, 08/01/22 Syncora Guarantee, Inc. Insured
  
Aa3/NR
       1,058,120          
  1,580,000  
4.500%, 08/01/23 AGMC Insured
  
Aa3/NR
       1,717,507          
  1,250,000  
4.125%, 03/01/25 AGMC Insured
  
Aa3/NR
       1,342,975          
                             
     
Bullitt County, Kentucky School District Finance Corp.
                      
  200,000  
4.300%, 10/01/21 NPFG Insured
  
Aa3/NR
       210,396          
  2,455,000  
4.500%, 10/01/22 NPFG Insured
  
Aa3/NR
       2,585,262          
  1,590,000  
4.500%, 10/01/23 NPFG Insured
  
Aa3/NR
       1,671,806          
  1,145,000  
4.500%, 04/01/27
  
Aa3/NR
       1,270,572          
  1,200,000  
4.500%, 04/01/28
  
Aa3/NR
       1,328,340          
                             
     
Campbell County, Kentucky School District Finance Corp. School Building Revenue
                      
  340,000  
3.500%, 08/01/22
  
Aa3/NR
       369,587          
                             
     
Christian County, Kentucky School District Finance Corp.
                      
  750,000  
4.125%, 08/01/23 Syncora Guarantee, Inc. Insured
  
Aa3/NR
       784,725          
 
 
 
 
 
  1,590,000  
4.125%, 08/01/24 Syncora Guarantee, Inc. Insured
  
Aa3/NR
       1,660,962          
                             
     
Daviess County, Kentucky School District Finance Corp.
                      
  200,000  
5.000%, 06/01/24 (pre-refunded)
  
Aa3/NR
       215,458          
                             
     
Fayette County, Kentucky School District Finance Corp.
                      
  5,000,000  
4.250%, 04/01/23 AGMC Insured (pre-refunded)
  
Aa2/AA
       5,479,950          
  4,335,000  
4.375%, 05/01/26 AGMC Insured
  
Aa2/AA
       4,702,044          
                             
     
Floyd County, Kentucky School Finance Corporation School Building
                      
  1,255,000  
4.125%, 03/01/26 Syncora Guarantee, Inc. Insured
  
Aa3/NR
       1,302,489          
                             
     
Fort Thomas, Kentucky Independent School District Finance Corp.
                      
  610,000  
4.375%, 04/01/25
  
Aa3/NR
       642,605          
                             
     
Franklin County, Kentucky School District Finance Corp.
                      
  1,000,000  
5.000%, 04/01/24
  
Aa3/NR
       1,050,920          
  1,560,000  
4.000%, 06/01/29
  
Aa3/NR
       1,662,960          
  1,000,000  
4.000%, 06/01/30
  
Aa3/NR
       1,060,870          
                             
     
Graves County, Kentucky School Building Revenue
                      
  1,260,000  
5.000%, 06/01/22 (pre-refunded)
  
Aa3/NR
       1,299,677          
  1,320,000  
5.000%, 06/01/23 (pre-refunded)
  
Aa3/NR
       1,361,567          
                             
     
Jessamine County, Kentucky School District Finance Corp., School Building Revenue
                      
  1,365,000  
4.000%, 08/01/32
  
Aa3/NR
       1,471,948          
                             
     
Kenton County, Kentucky School District Finance Corp.
                      
  445,000  
4.300%, 04/01/22 AGC Insured
  
Aa3/NR
       470,725          
  4,250,000  
5.000%, 06/01/22 NPFG Insured (pre-refunded)
  
Aa3/NR
       4,578,483          
  590,000  
4.250%, 10/01/22 AGMC Insured
  
Aa3/NR
       629,713          
  750,000  
4.375%, 04/01/24 AGC Insured
  
Aa3/NR
       791,370          
  325,000  
4.400%, 04/01/26 AGC Insured
  
Aa3/NR
       341,975          
                             
     
Larue County, Kentucky School District Finance Corp.
                      
  270,000  
4.500%, 07/01/21 NPFG Insured
  
Aa3/NR
       291,287          
  470,000  
4.500%, 07/01/22 NPFG Insured
  
Aa3/NR
       505,128          
  785,000  
4.500%, 07/01/23 NPFG Insured
  
Aa3/NR
       841,049          
                             
     
Laurel County, Kentucky School District Finance Corp.
                      
  300,000  
4.000%, 06/01/16 AGMC Insured
  
Aa3/NR
       330,678          
                             
     
Magoffin County, Kentucky School District
                      
  375,000  
4.250%, 08/01/23 AMBAC Insured
  
Aa3/NR
       399,510          
  475,000  
4.250%, 08/01/25 AMBAC Insured
  
Aa3/NR
       502,830          
                             
     
Ohio County, Kentucky School Building Revenue
                      
  790,000  
4.500%, 05/01/24
  
Aa3/NR
       871,338          
  325,000  
4.500%, 05/01/25
  
Aa3/NR
       356,863          
                             
     
Oldham County, Kentucky School District Finance Corp.
                      
  500,000  
5.000%, 05/01/19 NPFG Insured (pre-refunded)
  
Aa3/NR
       536,880          
  1,000,000  
4.500%, 09/01/27 NPFG Insured
  
Aa3/NR
       1,060,960          
  1,370,000  
4.000%, 09/01/32
  
Aa3/NR
       1,508,904          
                             
     
Owensboro, Kentucky Independent School District Finance Corp. School Building Revenue
                      
  890,000  
4.375%, 09/01/24
  
Aa3/NR
       987,873          
                             
     
Pendleton County, Kentucky School District Finance Corp. School Building Revenue
                      
  730,000  
4.000%, 02/01/23 NPFG Insured
  
Aa3/NR
       771,866          
                             
     
Pike County, Kentucky School Building Revenue
                      
  1,355,000  
4.375%, 10/01/26 NPFG Insured
  
Aa3/NR
       1,457,750          
                             
     
Scott County, Kentucky School District Finance Corp.
                      
  1,115,000  
4.200%, 01/01/22 AMBAC Insured
  
Aa3/NR
       1,166,290          
  1,955,000  
4.250%, 01/01/23 AMBAC Insured
  
Aa3/NR
       2,041,372          
  1,560,000  
4.300%, 01/01/24 AMBAC Insured
  
Aa3/NR
       1,630,262          
  1,500,000  
3.400%, 02/01/32
  
Aa3/NR
       1,523,985          
                             
     
Spencer County, Kentucky School District Finance Corp., School Building Revenue
                      
  1,000,000  
4.500%, 08/01/27 AGMC Insured
  
Aa3/NR
       1,086,120          
                             
     
Warren County, Kentucky School District Finance Corp.
                      
  295,000  
4.125%, 02/01/23 NPFG Insured
  
Aa3/NR
       309,918          
  500,000  
4.375%, 04/01/27 AGMC Insured
  
Aa3/NR
       534,585          
                             
     
Total Schools
           62,884,834          
                             
     
Transportation (15.3%)
                      
                             
     
Kenton County, Kentucky Airport Board Airport Revenue
                      
  1,300,000  
5.000%, 03/01/23 NPFG Insured AMT
   A3/A-       1,308,944          
 
 
 
 
 
                             
     
Kentucky State Turnpike Authority
                      
  3,000,000  
4.450%, 07/01/22 Series B
  
Aa2/AA+
       3,351,240          
  3,500,000  
5.000%, 07/01/25
  
Aa2/AA+
       4,232,970          
  2,000,000  
5.000%, 07/01/25 AMBAC Insured
  
Aa2/AA+
       2,157,160          
  1,000,000  
5.000%, 07/01/25
  
Aa2/AA+
       1,146,800          
  2,750,000  
5.000%, 07/01/27
  
Aa2/AA+
       3,137,778          
  1,100,000  
5.000%, 07/01/28
  
Aa2/AA+
       1,251,943          
  5,000,000  
5.000%, 07/01/29 Series A
  
Aa2/AA+
       6,089,400          
  3,000,000  
4.000%, 07/01/29
  
Aa2/AA+
       3,340,260          
  1,000,000  
5.000%, 07/01/30 Series A
  
Aa2/AA+
       1,212,090          
                             
     
Louisville, Kentucky Regional Airport Authority
                      
  1,060,000  
5.000%, 07/01/18 AMT
   A2/A+       1,209,471          
  1,000,000  
5.250%, 07/01/23 AGMC Insured AMT
  
Aa3/AA-
       1,107,300          
  2,610,000  
5.000%, 07/01/24 AMBAC Insured AMT
   A2/A+       2,735,176          
                             
     
Louisville & Jefferson County Regional Airport, Kentucky
                      
  1,000,000  
5.250%, 07/01/18 AGMC Insured AMT
  
Aa3/AA-
       1,030,210          
  2,000,000  
5.250%, 07/01/20 AGMC Insured AMT
  
Aa3/AA-
       2,040,680          
  1,370,000  
5.250%, 07/01/21 AGMC Insured AMT
  
Aa3/AA-
       1,396,236          
  3,390,000  
5.250%, 07/01/22 AGMC Insured AMT
  
Aa3/AA-
       3,453,156          
  275,000  
5.375%, 07/01/23 AGMC Insured AMT
  
Aa3/AA-
       275,448          
  500,000  
5.000%, 07/01/25 NPFG Insured AMT
   A2/A+       500,525          
                             
     
Total Transportation
           40,976,787          
                             
     
Utilities (12.3%)
                      
                             
     
Campbell & Kenton Counties, Kentucky (Sanitation District)
                      
  1,695,000  
4.300%, 08/01/24 NPFG Insured
  
Aa2/AA
       1,824,939          
  300,000  
4.300%, 08/01/27 NPFG Insured
  
Aa2/AA
       317,223          
  2,370,000  
4.000%, 08/01/27
  
Aa2/AA
       2,615,935          
  1,450,000  
4.300%, 08/01/28 NPFG Insured
  
Aa2/AA
       1,527,300          
                             
     
Carroll County, Kentucky Environmental Facilities Revenue (Kentucky Utilities) AMT
                      
  1,500,000  
5.750%, 02/01/26 AMBAC Insured
   A2/A-       1,666,185          
                             
     
Henderson, Kentucky Electric System Revenue
                      
  250,000  
4.000%, 12/01/24
  
A3/NR
       267,195          
                             
     
Kentucky Rural Water Finance Corp.
                      
  205,000  
4.250%, 08/01/19 NPFG Insured
  
Baa2/A+
       220,106          
  595,000  
5.000%, 02/01/20 NPFG Insured
  
Baa2/A+
       602,485          
  210,000  
4.250%, 08/01/20 NPFG Insured
  
Baa2/A+
       224,599          
  200,000  
4.375%, 08/01/22 NPFG Insured
  
Baa2/A+
       214,738          
  240,000  
4.500%, 08/01/23 NPFG Insured
  
Baa2/A+
       258,139          
  200,000  
4.500%, 02/01/24 NPFG Insured
  
Baa2/A+
       203,846          
  255,000  
4.500%, 08/01/24 NPFG Insured
  
Baa2/A+
       274,176          
  355,000  
4.600%, 02/01/25
  
NR/A+
       390,287          
  290,000  
4.500%, 08/01/27 NPFG Insured
  
Baa2/A+
       308,960          
  245,000  
4.600%, 08/01/28 NPFG Insured
  
Baa2/A+
       261,351          
  315,000  
4.625%, 08/01/29 NPFG Insured
  
Baa2/A+
       335,954          
                             
     
Kentucky Rural Water Finance Corp., Public Project Revenue Refunding
                      
  375,000  
4.000%, 02/01/28
  
NR/A+
       399,874          
  305,000  
4.000%, 02/01/29
  
NR/A+
       324,541          
                             
     
Kentucky State Municipal Power Agency, Prairie St. Project
                      
  1,000,000  
5.000%, 09/01/23 AGMC Insured
  
Aa3/AA-
       1,161,280          
                             
     
Louisville & Jefferson County, Kentucky Metropolitan Government Pollution Refunding, Louisville Gas & Electric Co. Project
                      
  2,000,000  
1.650%, 10/01/33
   A2/A-       2,014,220          
 
 
 
 
 
                             
     
Louisville & Jefferson County, Kentucky Metropolitan Sewer District
                      
  2,380,000  
4.250%, 05/15/20 AGMC Insured
  
Aa3/AA
       2,566,425          
  2,510,000  
4.250%, 05/15/21 AGMC Insured
  
Aa3/AA
       2,693,130          
  1,500,000  
5.000%, 05/15/26 AGMC Insured
  
Aa3/AA
       1,595,160          
  500,000  
5.000%, 05/15/28 Series A
  
Aa3/AA
       598,175          
  1,350,000  
5.000%, 05/15/34
  
Aa3/AA
       1,567,431          
  505,000  
4.250%, 05/15/38 Series A AGMC Insured
  
Aa3/AA
       528,341          
                             
     
Northern Kentucky Water District
                      
  1,000,000  
5.000%, 02/01/26
  
Aa3/NR
       1,191,230          
  1,825,000  
6.000%, 02/01/28 AGMC Insured
  
Aa3/NR
       2,139,083          
  1,250,000  
4.500%, 02/01/30
  
Aa3/NR
       1,387,213          
                             
     
Owensboro, Kentucky Electric and Power
                      
  1,000,000  
5.000%, 01/01/21 AGMC Insured
  
Aa3/AA-
       1,203,600          
                             
     
Owensboro, Kentucky Water Revenue
                      
  500,000  
5.000%, 09/15/27 AGMC Insured
  
Aa3/NR
       566,045          
                             
     
Owensboro-Daviess County, Kentucky Regional Water Resource Agency Wastewater Refunding & Improvement
                      
  930,000  
4.375%, 01/01/27 Series A Syncora Guarantee, Inc. Insured
  
NR/AA-
       979,048          
                             
     
Trimble County, Kentucky Environmental Facilities Revenue Refunding, Louisville Gas & Electric Co.
                      
  500,000  
4.600%, 06/01/33 AMBAC Insured
   A2/A-       524,540          
                             
     
Total Utilities
           32,952,754          
                             
     
Total Revenue Bonds
           249,650,283          
                             
     
Total Investments (cost $244,797,407-note b)
   97.8 %     262,878,470          
                             
     
Other assets less liabilities
   2.2       5,915,413          
                             
     
Net Assets
   100.0 %   $ 268,793,883          
                             
     
* Any security not rated ("NR") by any of the Nationally Recognized Statistical Rating Organizations ("NRSRO or Credit Rating Agency") has been determined by the Investment Adviser to have sufficient quality to be ranked in the top credit four ratings if a credit rating were to be assigned by a NRSRO.
                  
                             
     
Fitch ratings
                      
     
**    AAA
                      
     
***   AA
                      
     
**** A
                      
                             
         
Percent of
                  
     
Portfolio Distribution By Quality Rating (unaudited)
  
Investments †
                  
                             
     
Aaa of Moody's or AAA of S&P or Fitch
   5.1 %  
 
          
     
Pre-refunded bonds †† / Escrowed to Maturity bonds
   6.8                  
     
Aa of Moody's or AA of S&P or Fitch
   71.5                  
     
 A of Moody's or S&P or Fitch
   15.5                  
     
Baa of Moody's or BBB of S&P
   0.4                  
     
Not rated*
   0.7                  
          100.0 %  
 
          
                             
     
† Where applicable, calculated using the highest rating of the three NRSRO.
                      
                             
     
†† 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:
                      
     
AGC - Assured Guaranty Corp.
                      
     
AGMC - Assured Guaranty Municipal Corp.
                      
     
AMBAC - American Municipal Bond Assurance Corp.
                      
     
AMT - Alternative Minimum Tax
                      
     
FGIC - Financial Guaranty Insurance Co.
                      
     
FHA - Federal Housing Administration
                      
     
NPFG - National Public Finance Guarantee
                      
     
NR - Not Rated
                      
                             
     
See accompanying notes to financial statements.
                      
 
 
 
 
CHURCHILL TAX-FREE FUND OF KENTUCKY
NOTES TO FINANCIAL STATEMENTS
September 30, 2012
(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 September 30, 2012, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $244,638,778 amounted to of $18,239,692, which consisted of aggregate gross unrealized appreciation of $18,243,066 and aggregate gross unrealized depreciation of $3,374.
 
(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 September 30, 2012:

Valuation Inputs
 
  
Investments in Securities
  
 Level 1 – Quoted Prices
   $ -  
 Level 2 – Other Significant Observable Inputs- Municipal Bonds+
     262,878,470  
 Level 3 – Significant Unobservable Inputs
     -  
 Total
   $ 262,878,470  

+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
    
 
November 28, 2012
    

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
    
 
November 28, 2012
    
       
       
By:
/s/ Joseph P. DiMaggio
    
 
Chief Financial Officer and Treasurer
    
 
November 28, 2012