-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KJ1uA5w99g81l2wMRAxWF2zvJ4QUpsvY4pxGXMWQunSq93JzznajLG+B80AEcusc mg7PDXBkpLFbEvyEt2jwYQ== 0000872032-04-000007.txt : 20040308 0000872032-04-000007.hdr.sgml : 20040308 20040308115656 ACCESSION NUMBER: 0000872032-04-000007 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031231 FILED AS OF DATE: 20040308 EFFECTIVENESS DATE: 20040308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TAX FREE FUND FOR UTAH CENTRAL INDEX KEY: 0000872032 IRS NUMBER: 133673542 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06239 FILM NUMBER: 04653947 BUSINESS ADDRESS: STREET 1: 380 MADISON AVE STREET 2: SUITE 2300 CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2126976666 MAIL ADDRESS: STREET 2: 380 MADISON AVE SUITE CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: PLEIADES TAX FREE FUND DATE OF NAME CHANGE: 19920514 N-CSR 1 tffuformncsr.txt TAX-FREE FUND FOR UTAH 12/31/03 NCSR UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-6239 Tax-Free Fund for Utah (Exact name of Registrant as specified in charter) 380 Madison Avenue New York, New York 10017 (Address of principal executive offices) (Zip code) Joseph P. DiMaggio 380 Madison Avenue New York, New York 10017 (Name and address of agent for service) Registrant's telephone number, including area code: (212) 697-6666 Date of fiscal year end: 6/30 Date of reporting period: 12/31/03 FORM N-CSR ITEM 1. REPORTS TO STOCKHOLDERS. [Logo of the Aquila Group of Funds: an eagle's head] AQUILA(SM) SERVING UTAH INVESTORS GROUP OF FUNDS FOR MORE THAN A DECADE TAX-FREE FUND FOR UTAH 380 MADISON AVENUE, SUITE 2300 * NEW YORK, NY 10017 800-437-1020 * 212-697-6666 [Logo of Tax-Free Fund for Utah: a rectangle containing desert boulders sun rising behind them] SEMI-ANNUAL REPORT TAX-FREE FUND FOR UTAH STATEMENT OF INVESTMENTS DECEMBER 31, 2003 (UNAUDITED)
RATING FACE MOODY'S/ AMOUNT GENERAL OBLIGATION BONDS (16.5%) S&P VALUE - ---------- ------------------------------------------------------- --------- ----------- CITY, COUNTY AND STATE (7.2%) ------------------------------------------------------- American Fork City, Utah $ 610,000 5.00%, 12/01/14 FGIC Insured........................ Aaa/NR $ 654,988 645,000 5.00%, 12/01/15 FGIC Insured........................ Aaa/NR 691,762 Brian Head, Utah 405,000 6.50%, 03/15/24..................................... NR/NR* 461,194 Brigham City, Utah Tax Allocation 140,000 5.50%, 06/15/11 FSA Insured (pre-refunded).......... Aaa/AAA 153,300 Cedar City, Utah Special Improvement District Assessment 235,000 5.05%, 09/01/10..................................... NR/NR* 242,050 215,000 5.20%, 09/01/11..................................... NR/NR* 222,256 Clearfield City, Utah 2,095,000 5.125%, 02/01/18 MBIA Insured....................... Aaa/AAA 2,212,844 Coral Canyon, Utah Special Service District 580,000 5.70%, 07/15/18..................................... NR/NR* 595,950 Hurricane, Utah 295,000 5.40%, 11/01/09 Radian Insured...................... NR/AA 332,244 North Davis County, Utah Sewer District 1,330,000 5.375%, 03/01/18 AMBAC Insured...................... Aaa/NR 1,467,988 150,000 5.125%, 03/01/22 AMBAC Insured...................... Aaa/NR 156,750 St. George, Utah 100,000 5.375%, 08/01/21 FGIC Insured....................... Aaa/AAA 107,500 Salt Lake City, Utah 120,000 5.75%, 06/15/17 (pre-refunded)...................... Aaa/NR 141,150 Washington County, Utah 1,000,000 5.00%, 10/01/22 MBIA Insured........................ Aaa/NR 1,038,750 ----------- 8,478,726 ----------- SCHOOL DISTRICT (9.3%) ------------------------------------------------------- Alpine, Utah School District 1,000,000 5.25%, 03/15/12..................................... Aaa/NR 1,112,500 375,000 5.00%, 03/15/12..................................... Aaa/NR 417,187 Davis County, Utah School District 575,000 5.00%, 06/01/15..................................... Aaa/NR 621,719 250,000 5.10%, 06/01/16..................................... Aaa/NR 272,500 675,000 5.15%, 06/01/17..................................... Aaa/NR 731,531 Nebo, Utah School District $ 440,000 5.50%, 07/01/11..................................... Aaa/AAA $ 502,700 2,000,000 5.50%, 07/01/19..................................... Aaa/AAA 2,210,000 Rich County, Utah School District 120,000 5.50%, 12/15/09..................................... NR/NR* 126,750 100,000 5.60%, 12/15/10..................................... NR/NR* 104,500 Tooele County, Utah School District 1,375,000 5.25%, 06/01/17..................................... Aaa/AAA 1,510,781 Weber County, Utah School District 750,000 5.00%, 06/15/18..................................... Aaa/NR 793,125 825,000 5.00%, 06/15/20..................................... Aaa/NR 874,500 Weber County, Utah School District-Series B 1,485,000 5.000%, 06/15/21.................................... Aaa/NR 1,544,400 ------------ 10,822,193 ------------ Total General Obligation Bonds...................... 19,300,919 ------------ REVENUE BONDS (82.7%) ------------------------------------------------------- EDUCATION (14.7%) ------------------------------------------------------- Salt Lake County, Utah Westminster College Project 115,000 5.05%, 10/01/10..................................... NR/BBB 125,063 100,000 5.50%, 10/01/19..................................... NR/BBB 103,250 1,000,000 5.75%, 10/01/27..................................... NR/BBB 1,036,250 Southern Utah University Revenue 375,000 6.30%, 06/01/16..................................... NR/NR* 396,094 University of Utah Revenue Refunding, (Biology Research Facilities), 200,000 5.50%, 04/01/11 MBIA Insured........................ Aaa/AAA 217,000 Utah State Board Regents Dixie State College 115,000 5.50%, 05/01/13 MBIA Insured........................ Aaa/AAA 131,531 120,000 5.50%, 05/01/14 MBIA Insured........................ Aaa/AAA 136,950 130,000 5.50%, 05/01/15 MBIA Insured........................ Aaa/AAA 148,363 400,000 5.10%, 05/01/21 MBIA Insured........................ Aaa/AAA 420,000 Utah State Board Regents Office Facility Revenue 450,000 5.05%, 02/01/20 MBIA Insured........................ Aaa/AAA 473,625 360,000 5.125%, 02/01/22 MBIA Insured....................... Aaa/AAA 376,200 Utah State Board Regents Salt Lake Community College $1,035,000 5.50%, 06/01/14 FSA Insured......................... Aaa/AAA $ 1,173,431 1,260,000 5.50%, 06/01/16 FSA Insured......................... Aaa/AAA 1,415,925 Utah State Board Regents University Utah-Auxiliary & Campus Revenue 895,000 5.25%, 04/01/12 MBIA Insured........................ Aaa/AAA 997,925 1,000,000 5.00%, 04/01/20 MBIA Insured........................ Aaa/AAA 1,042,500 Utah State Board Regents University Utah Hospital Revenue 1,055,000 5.50%, 08/01/16 FSA Insured......................... Aaa/AAA 1,188,194 2,030,000 5.50%, 08/01/17 MBIA Insured........................ Aaa/AAA 2,278,675 905,000 5.00%, 05/01/19 AMBAC Insured....................... Aaa/AAA 960,431 3,595,000 5.00%, 08/01/19 MBIA Insured........................ Aaa/AAA 3,779,244 Weber State University, Utah Revenue Student Facilities System Series A 300,000 5.10%, 04/01/16..................................... NR/AA 324,750 425,000 5.25%, 04/01/19..................................... NR/AA 458,469 ------------ 17,183,870 ------------ HEALTHCARE (2.9%) ------------------------------------------------------- Murray City, Utah Hospital Revenue 595,000 5.00%, 05/15/22 MBIA Insured........................ Aaa/AAA 610,619 Salt Lake County, Utah Hospital Revenue - IHC Hospitals, Inc. 500,000 5.50%, 05/15/13 AMBAC Insured....................... Aaa/AAA 565,000 Utah County, Utah Hospital Revenue, IHC Health Services 1,935,000 5.25%, 08/15/21 MBIA Insured........................ Aaa/AAA 2,034,169 Utah State Board Regents Revenue University Utah Hospital Revenue 110,000 5.00%, 08/01/21 MBIA Insured........................ Aaa/AAA 114,400 ------------ 3,324,188 ------------ HOUSING (5.5%) ------------------------------------------------------- Provo City, Utah Housing Authority 500,000 5.80%, 07/20/22 GNMA Collateralized................. Aaa/NR 523,750 Utah Housing Corporation Single Family Housing $ 70,000 5.25%, 07/01/23 AMT................................. Aa2/AA $ 71,487 Utah Housing Corporation Single Family Mortgage 515,000 5.150%, 07/01/23 AMT................................ Aaa/AAA 522,725 Utah State Housing Agency Housing Revenue 170,000 5.65%, 07/01/27 AMT................................. Aa2/AA 174,462 Utah State Housing Corporation Single Family Housing Revenue 1,000,000 5.125%, 07/01/24 AMT................................ Aa3/AA- 1,011,250 Utah State Housing Finance Agency 10,000 5.00%, 07/01/09 Series F............................ Aaa/AAA 10,000 170,000 6.35%, 07/01/12 AMBAC Insured AMT................... Aaa/AAA 175,170 20,000 6.15%, 07/01/16 Senior Issue A-1.................... Aaa/AAA 20,825 205,000 5.30%, 07/01/18 AMT................................. Aaa/AAA 211,919 185,000 5.00%, 07/01/18 AMT................................. Aaa/AAA 189,394 770,000 5.40,%, 07/01/20 AMT................................ Aa2/AA 797,912 15,000 7.25%, 07/01/11 Series 1994C........................ Aaa/AA 15,389 60,000 6.60%, 07/01/11 Series E-1.......................... NR/AA 61,693 60,000 6.35%, 07/01/11 Mezzanine Series G-1................ AAA/NR 60,675 340,000 5.65%, 07/01/16 Series 1994C........................ Aaa/AAA 354,875 120,000 5.40%, 07/01/16 AMT................................. Aa2/AA 122,850 205,000 6.00%, 07/01/17 AMT................................. Aaa/AAA 213,200 970,000 5.50%, 07/01/18 AMT................................. Aa3/AA- 1,023,350 460,000 5.60%, 07/01/23 AMT................................. Aa2/AA 476,100 West Jordan, Utah Multi-Family Housing 360,000 6.80%, 01/01/15 FSA Insured......................... Aaa/AAA 368,107 ------------ 6,405,133 ------------ INDUSTRIAL DEVELOPMENT & POLLUTION CONTROL (0.6%) ------------------------------------------------------- Sandy City, Utah Industrial Development, H Shirley Wright Project, Refunding Bonds, LOC Olympus Bank 250,000 6.125%, 08/01/16.................................... NR/AAA 255,470 Utah County Environmental Improvement Revenue 435,000 5.05%, 11/01/17..................................... Baa1/BBB+ 471,431 ------------ 726,901 ------------ LEASE (12.4%) ------------------------------------------------------- Emery County, Utah Municipal Building Authority Lease $ 840,000 5.125%, 03/01/23 Radian Insured..................... NR/AA $ 869,400 Lehi, Utah Municipal Building Lease Revenue, Building Revenue 1,020,000 5.50%, 06/15/15 AMBAC Insured....................... Aaa/NR 1,150,050 Murray City, Utah Municipal Building Revenue 520,000 5.05%, 12/01/15 AMBAC Insured....................... Aaa/NR 566,150 Salt Lake County, Utah Municipal Building Authority, Lease Revenue 400,000 5.00%, 10/01/11 MBIA Insured........................ Aaa/AAA 438,000 1,070,000 6.00%, 10/15/14..................................... Aa1/AA 1,098,013 320,000 5.40%, 10/15/19 AMBAC Insured....................... Aaa/AAA 354,000 3,900,000 5.20%, 10/15/20 AMBAC Insured....................... Aaa/AAA 4,148,625 Sandy City, Utah Municipal Building Authority 700,000 5.60%, 06/15/15 AMBAC Insured....................... Aaa/NR 799,750 Tooele City, Utah Municipal Building Lease Revenue 250,000 5.60%, 12/01/15 AMBAC Insured....................... Aaa/AAA 283,438 Utah County, Utah Municipal Building Authority, Lease Revenue 120,000 5.50%, 11/01/16 AMBAC Insured....................... Aaa/NR 135,600 240,000 5.50%, 11/01/17 AMBAC Insured....................... Aaa/NR 269,400 Utah State Building Ownership Authority 1,350,000 5.25%, 05/15/20 FSA Insured......................... Aaa/AAA 1,437,750 Washington County - Saint George, Utah Interlocal Agency Revenue 1,000,000 5.125%, 12/01/17 AMBAC Insured...................... NR/AAA 1,076,250 100,000 5.125%, 12/01/22 AMBAC Insured...................... NR/AAA 103,250 Weber County, Utah Municipal Building Lease Revenue 1,500,000 5.75%, 12/15/19 MBIA Insured........................ Aaa/AAA 1,683,750 ------------ 14,413,426 ------------ TAX REVENUE (27.3%) ------------------------------------------------------- Bluffdale, Utah Sales Tax Revenue 2,110,000 5.50%, 08/01/23..................................... NR/NR* 2,181,213 Bountiful, Utah Special Improvement District Special Assessment Revenue $ 203,000 5.00%, 06/01/14..................................... NR/NR* $ 198,179 213,000 5.15%, 06/01/15..................................... NR/NR* 208,208 224,000 5.30%, 06/01/16..................................... NR/NR* 219,520 236,000 5.50%, 06/01/17..................................... NR/NR* 233,050 249,000 5.65%, 06/01/18..................................... NR/NR* 247,133 Brian Head, Utah Special Service Improvement District Revenue 455,000 5.35%, 11/01/12..................................... NR/NR* 468,650 Cache County, Utah Sales Tax Revenue 500,000 5.00%, 12/15/14 FGIC Insured........................ Aaa/AAA 550,000 670,000 5.00%, 12/15/16 FGIC Insured........................ Aaa/AAA 726,113 600,000 5.00%, 12/15/17 FGIC Insured........................ Aaa/AAA 645,750 510,000 5.00%, 12/15/18 FGIC Insured........................ Aaa/AAA 545,062 830,000 5.00%, 12/15/19 FGIC Insured........................ Aaa/AAA 878,763 Clearfield, Utah Sales Tax Revenue 590,000 5.00%, 07/01/18 FGIC Insured........................ Aaa/AAA 633,512 620,000 5.00%, 07/01/19 FGIC Insured........................ Aaa/AAA 658,750 650,000 5.00%, 07/01/20 FGIC Insured........................ Aaa/AAA 686,563 Coral Canyon, Utah Special Service District 110,000 5.00%, 07/15/13..................................... NR/NR* 112,062 250,000 5.50%, 07/15/18..................................... NR/NR* 254,375 Davis County, Utah Sales Tax Revenue 1,470,000 5.15%, 10/01/18 AMBAC Insured....................... NR/AAA 1,596,788 Jordanelle, Utah Special Service District 186,000 5.00%, 11/15/14..................................... NR/NR* 186,698 196,000 5.10%, 11/15/15..................................... NR/NR* 196,735 206,000 5.20%, 11/15/16..................................... NR/NR* 206,772 216,000 5.30%, 11/15/17..................................... NR/NR* 216,810 228,000 5.40%, 11/15/18..................................... NR/NR* 228,855 240,000 5.50%, 11/15/19..................................... NR/NR* 240,900 253,000 5.60%, 11/15/20..................................... NR/NR* 253,949 268,000 5.70%, 11/15/21..................................... NR/NR* 269,005 283,000 5.80%, 11/15/22..................................... NR/NR* 284,061 299,000 6.00%, 11/15/23..................................... NR/NR* 300,121 Jordanelle, Utah Special Service Improvement District $ 400,000 8.00%, 10/01/11..................................... NR/NR* $ 420,500 Mountain Regional Water District, Utah Special Assessment Revenue 2,000,000 7.00%, 12/01/18..................................... NR/NR* 1,982,500 Mountain Regional Water, Utah Special Service District 2,000,000 5.000%, 12/15/20 MBIA Insured....................... Aaa/AAA 2,115,000 Orem, Utah Special Assessment Revenue 96,000 5.00%, 08/01/15..................................... NR/NR* 95,400 101,000 5.15%, 08/01/16..................................... NR/NR* 100,748 106,000 5.30%, 08/01/17..................................... NR/NR* 105,992 112,000 5.50%, 08/01/18..................................... NR/NR* 111,999 118,000 5.65%, 08/01/19..................................... NR/NR* 118,002 Pleasant Grove City, Utah Sales Tax Revenue 410,000 5.25%, 12/01/17 MBIA Insured........................ Aaa/AAA 453,050 Salt Lake City, Utah Sales Tax Revenue 490,000 5.25%, 02/01/12..................................... NR/AAA 557,375 265,000 5.25%, 02/01/13..................................... NR/AAA 297,463 1,320,000 5.25%, 02/01/15..................................... NR/AAA 1,463,550 100,000 5.25%, 02/01/17..................................... NR/AAA 109,500 Salt Lake County, Utah Municipal Building Authority 100,000 5.40%, 10/01/19..................................... Aa1/AA+ 109,250 Sandy City, Utah Sales Tax Revenue 520,000 5.00%, 09/15/18 AMBAC Insured....................... NR/AAA 555,100 605,000 5.00%, 09/15/20 AMBAC Insured....................... NR/AAA 636,006 South Jordan, Utah Sales Tax 570,000 5.00%, 08/15/15 AMBAC Insured....................... Aaa/AAA 617,025 South Jordan, Utah Special Assignment 1,000,000 6.875%, 11/01/17.................................... NR/NR* 1,020,000 Utah Water Finance Agency Revenue 725,000 5.10%, 07/01/18 AMBAC Insured....................... Aaa/NR 778,469 510,000 5.00%, 07/01/18 AMBAC Insured....................... Aaa/NR 545,062 250,000 5.00%, 06/01/19 MBIA Insured........................ Aaa/AAA 263,750 685,000 5.00%, 07/01/19 AMBAC Insured....................... Aaa/NR 727,812 Wasatch County, Utah Building Authority 130,000 5.00%, 10/01/15..................................... A3/NR 136,825 135,000 5.00%, 10/01/16..................................... A3/NR 141,750 Wasatch County, Utah Sales Tax Revenue $ 205,000 5.00%, 12/01/16 AMBAC Insured....................... Aaa/AAA $ 222,169 210,000 5.00%, 12/01/17 AMBAC Insured....................... Aaa/AAA 226,012 225,000 5.00%, 12/01/18 AMBAC Insured....................... Aaa/AAA 240,469 Washington City, Utah Sales Tax Revenue 680,000 5.25%, 11/15/17 AMBAC Insured....................... NR/AAA 750,550 West Valley City, Utah Sales Tax Revenue 800,000 5.50%, 07/15/17 MBIA Insured........................ Aaa/AAA 895,000 1,400,000 6.00%, 03/01/24..................................... NR/A- 1,485,750 Woodland Hills, Utah Special Assessment Revenue 94,000 5.50%, 08/01/09..................................... NR/NR* 95,645 224,000 5.50%, 08/01/10..................................... NR/NR* 228,480 236,000 5.50%, 08/01/11..................................... NR/NR* 241,310 249,000 5.50%, 08/01/12..................................... NR/NR* 253,980 263,000 5.50%, 08/01/13..................................... NR/NR* 267,602 ------------ 31,796,692 ------------ TRANSPORTATION (2.1%) ------------------------------------------------------- Salt Lake City, Utah Airport Revenue Series B 875,000 5.875%, 12/01/12 FGIC Insured....................... Aaa/AAA 893,217 370,000 5.875%, 12/01/18 FGIC Insured....................... Aaa/AAA 377,703 Utah Transit Authority Sales Tax & Transportation Revenue 1,000,000 5.40%, 12/15/16 FSA Insured......................... NR/AAA 1,107,500 ------------ 2,378,420 ------------ UTILITY (8.6%) ------------------------------------------------------- Intermountain Power Agency Utilities Light & Power Service, Utah 450,000 5.00%, 07/01/12 MBIA Insured........................ Aaa/AAA 457,443 1,470,000 5.25%, 07/01/15 MBIA Insured........................ Aaa/AAA 1,639,050 90,000 5.00%, 07/01/16..................................... A1/A+ 94,275 2,380,000 5.00%, 07/01/21..................................... A1/A+ 2,445,450 255,000 5.00%, 07/01/23..................................... A1/A+ 255,456 200,000 5.00%, 07/01/23 FSA Insured......................... Aaa/AAA 205,500 Manti City, Utah Electric System Revenue 603,000 5.75%, 02/01/17..................................... NR/NR* 612,045 Murray City, Utah Utility Electric Revenue 400,000 5.625%, 06/01/18 AMBAC Insured...................... Aaa/NR 444,500 Salem, Utah Electric Revenue $ 125,000 5.30%, 11/01/07..................................... NR/NR* $ 135,156 130,000 5.35%, 11/01/08..................................... NR/NR* 142,350 140,000 5.40%, 11/01/09..................................... NR/NR* 154,175 Southern Utah Valley Power System Revenue 210,000 5.25%, 09/15/13 MBIA Insured........................ NR/AAA 237,563 225,000 5.25%, 09/15/14 MBIA Insured........................ NR/AAA 253,969 235,000 5.25%, 09/15/15 MBIA Insured........................ NR/AAA 263,200 185,000 5.125%, 09/15/21 MBIA Insured....................... NR/AAA 194,944 Springville, Utah Electric Revenue 550,000 5.60%, 03/01/09..................................... Baa1/NR 609,125 Utah Assessed Municipal Power System Revenue 790,000 5.25%, 12/01/09..................................... NR/A- 882,825 1,000,000 5.00%, 04/01/21 FSA Insured......................... Aaa/AAA 1,047,500 ------------ 10,074,526 ------------ WATER AND SEWER (8.6%) ------------------------------------------------------- Ashley Valley, Utah 310,000 9.50%, 01/01/08 AMBAC Insured....................... Aaa/AAA 350,300 Eagle Mountain, Utah Water and Sewer 750,000 5.80%, 11/15/16 ACA Insured......................... NR/A 827,812 Granger and Hunter, Utah Improvement District Water & Sewer 250,000 5.00%, 03/01/18 FSA Insured......................... Aaa/NR 264,062 Murray City, Utah Sewer & Water Revenue 465,000 5.00%, 10/01/17 AMBAC Insured....................... Aaa/NR 501,619 390,000 5.00%, 10/01/18 AMBAC Insured....................... Aaa/NR 417,787 440,000 5.00%, 10/01/19 AMBAC Insured....................... Aaa/NR 468,050 Riverton, Utah Water Revenue 100,000 5.35%, 09/01/15 FGIC Insured........................ Aaa/NR 110,750 Salt Lake City, Utah Metropolitan Water Revenue 1,200,000 5.375%, 07/01/24 AMBAC Insured (pre-refunded)....... Aaa/AAA 1,375,500 125,000 5.375%, 07/01/29 AMBAC Insured (pre-refunded)....... Aaa/AAA 143,281 Salt Lake City, Utah Water And Sewer Revenue 500,000 5.75%, 02/01/13 AMBAC Insured....................... Aaa/AAA 522,180 Spanish Fork City, Utah Water Revenue 55,000 5.50%, 06/01/17 FSA Insured (pre-refunded).......... Aaa/NR 64,212 195,000 5.50%, 06/01/17 FSA Insured......................... Aaa/NR 218,400 Utah Water Finance Agency Revenue $ 100,000 5.00%, 06/01/14 MBIA Insured........................ Aaa/AAA $ 107,625 910,000 5.50%, 10/01/14 AMBAC Insured....................... Aaa/AAA 1,030,575 200,000 5.25%, 07/01/16 AMBAC Insured....................... Aaa/NR 221,750 250,000 5.375%, 09/01/17 AMBAC Insured...................... Aaa/NR 279,063 310,000 5.00%, 10/01/17 AMBAC Insured....................... Aaa/NR 333,250 500,000 5.25%, 10/01/18 AMBAC Insured....................... Aaa/NR 552,500 285,000 5.30%, 10/01/23 MBIA Insured........................ Aaa/AAA 300,675 450,000 5.40%, 10/01/24 AMBAC Insured....................... Aaa/AAA 478,687 250,000 5.50%, 10/01/29 AMBAC Insured....................... Aaa/AAA 268,125 Weber-Box Elder, Utah Conservation District Water Revenue 200,000 6.45%, 11/01/14 (pre-refunded)...................... Baa3/NR 243,000 200,000 6.50%, 11/01/19 (pre-refunded)...................... Baa3/NR 243,750 335,000 6.90%, 11/01/20 (pre-refunded)...................... Baa3/NR 416,237 White City, Utah Water Improvement 300,000 5.90%, 02/01/22 AMBAC Insured....................... Aaa/AAA 326,625 ------------ 10,065,815 ------------ Total Revenue Bonds................................. 96,368,971 ------------ Total Investments (cost $110,622,495**) 99.2% 115,669,890 Other assets less liabilities 0.8 965,976 ----- ------------ Net Assets 100.0% $116,635,866 ===== ============ * Any security not rated (NR) must be determined by the Investment Adviser to have sufficient quality to be ranked in the top four ratings if a credit rating were to be assigned by a rating service. ** See note 4. PORTFOLIO ABBREVIATIONS: ACA - ACA Financial Guaranty Corp. AMBAC - American Municipal Bond Assurance Corp. AMT - Alternative Minimum Tax FGIC - Financial Guaranty Insurance Co. FSA - Financial Security Assurance GNMA - Government National Mortgage Association LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance
See accompanying notes to financial statements. TAX-FREE FUND FOR UTAH STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2003 (UNAUDITED) ASSETS Investments at value (cost $110,622,495) ................................................. $ 115,669,890 Interest receivable ...................................................................... 1,614,857 Receivable for investment securities sold ................................................ 475,000 Receivable for Fund shares sold .......................................................... 223,925 ------------- Total assets ............................................................................. 117,983,672 ------------- LIABILITIES Cash overdraft ........................................................................... 280,332 Payable for Fund shares redeemed ......................................................... 846,785 Dividends payable ........................................................................ 113,413 Distribution fees payable ................................................................ 67,450 Management fees payable .................................................................. 2,943 Accrued expenses ......................................................................... 36,883 ------------- Total liabilities ........................................................................ 1,347,806 ------------- NET ASSETS .................................................................................. $ 116,635,866 ============= Net Assets consist of: Capital Stock - Authorized an unlimited number of shares, par value $.01 per share ....... $ 114,290 Additional paid-in capital ............................................................... 114,648,470 Net unrealized appreciation on investments (note 4) ...................................... 5,047,395 Accumulated net realized loss on investments ............................................. (2,943,359) ------------- Distributions in excess of net investment income ......................................... (230,930) ------------- $ 116,635,866 ============= CLASS A Net Assets ............................................................................... $ 95,857,928 ============= Capital shares outstanding ............................................................... 9,392,614 ============= Net asset value and redemption price per share ........................................... $ 10.21 ============= Offering price per share (100/96 of $10.21 adjusted to nearest cent) ..................... $ 10.64 ============= CLASS C Net Assets ............................................................................... $ 19,768,274 ============= Capital shares outstanding ............................................................... 1,937,818 ============= Net asset value and offering price per share ............................................. $ 10.20 ============= Redemption price per share (*a charge of 1% is imposed on the redemption proceeds of the shares, or on the original price, whichever is lower, if redeemed during the first 12 months after purchase) ............................................ $ 10.20* ============= CLASS Y Net Assets ............................................................................... $ 1,009,664 ============= Capital shares outstanding ............................................................... 98,597 ============= Net asset value, offering and redemption price per share ................................. $ 10.24 =============
See accompanying notes to financial statements. TAX-FREE FUND FOR UTAH STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 2003 (UNAUDITED) INVESTMENT INCOME: Interest income ...................................... $ 2,562,147 Expenses: Management fee (note 3) .............................. $ 273,489 Distribution and service fees (note 3) ............... 179,869 Transfer and shareholder servicing agent fees ........ 29,017 Fund accounting fee .................................. 23,992 Shareholders' reports and proxy statements ........... 18,537 Legal fees ........................................... 18,410 Trustees' fees and expenses (note 8) ................. 17,814 Auditing and tax fees ................................ 10,994 Custodian fees ....................................... 7,250 Registration fees and dues ........................... 3,373 Miscellaneous ........................................ 12,032 ----------- Total expenses ....................................... 594,777 Management fee waived (note 3) ....................... (264,272) Expenses paid indirectly (note 6) .................... (4,483) ----------- Net expenses ......................................... 326,022 ----------- Net investment income ................................ 2,236,125 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from securities transactions (228,498) Change in unrealized appreciation on investments ..... (520,997) ----------- Net realized and unrealized gain (loss) on investments (749,495) ----------- Net increase in net assets resulting from operations ................................. $ 1,486,630 ===========
See accompanying notes to financial statements. TAX-FREE FUND FOR UTAH STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED DECEMBER 31, 2003 YEAR ENDED (UNAUDITED) JUNE 30, 2003 ----------------- ------------- OPERATIONS: Net investment income ......................................... $ 2,236,125 $ 3,389,214 Net realized gain (loss) from securities transactions ......... (228,498) (44,103) Change in unrealized appreciation on investments .............. (520,997) 3,818,783 ------------- ------------- Change in net assets from operations ....................... 1,486,630 7,163,894 ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS (NOTE 10): Class A Shares: Net investment income ......................................... (2,044,101) (3,169,522) Class C Shares: Net investment income ......................................... (330,446) (377,988) Class Y Shares: Net investment income ......................................... (21,684) (11,237) ------------- ------------- Change in net assets from distributions .................... (2,396,231) (3,558,747) ------------- ------------- CAPITAL SHARE TRANSACTIONS (NOTE 7): Proceeds from shares sold ..................................... 23,796,997 41,782,674 Reinvested dividends and distributions ........................ 1,272,268 1,882,383 Cost of shares redeemed ....................................... (10,156,318) (7,318,351) ------------- ------------- Change in net assets from capital share transactions ....... 14,912,947 36,346,706 ------------- ------------- Change in net assets ....................................... 14,003,346 39,951,853 NET ASSETS: Beginning of period ........................................... 102,632,520 62,680,667 ------------- ------------- End of period* ................................................ $ 116,635,866 $ 102,632,520 ============= ============= * Includes distributions in excess of net investment income of: $ (230,930) $ (70,824) ============= =============
See accompanying notes to financial statements. TAX-FREE FUND FOR UTAH NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. ORGANIZATION Tax-Free Fund For Utah (the "Fund"), a non-diversified, open-end investment company, was organized on December 12, 1990 as a Massachusetts business trust and commenced operations on July 24, 1992. The Fund is authorized to issue an unlimited number of shares and, since its inception to May 21, 1996, offered only one class of shares. On that date, the Fund began offering two additional classes of shares, Class C and Class Y shares. All shares outstanding prior to that date were designated as Class A shares and are sold with a front-payment sales charge and bear an annual distribution fee. Class C shares are sold with a level-payment sales charge with no payment at time of purchase but level service and distribution fees from date of purchase through a period of six years thereafter. A contingent deferred sales charge of 1% is assessed to any Class C shareholder who redeems shares of this Class within one year from the date of purchase. Class C Shares, together with a pro-rata portion of all Class C Shares acquired through reinvestment of dividends and other distributions paid in additional Class C Shares, automatically convert to Class A Shares after 6 years. The Class Y shares are only offered to institutions acting for an investor in a fiduciary, advisory, agency, custodian or similar capacity and are not offered directly to retail investors. Class Y shares are sold at net asset value without any sales charge, redemption fees, contingent deferred sales charge or distribution or service fees. On October 31, 1997, the Fund established Class I shares, which are offered and sold only through financial intermediaries and are not offered directly to retail investors. As of the report date, there were no Class I shares outstanding. All classes of shares, represent interests in the same portfolio of investments and are identical as to rights and privileges but differ with respect to the effect of sales charges, the distribution and/or service fees borne by each class, expenses specific to each class, voting rights on matters affecting a single class and the exchange privileges of each class. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America for investment companies. a) PORTFOLIO VALUATION: Municipal securities which have remaining maturities of more than 60 days are valued each business day based upon information provided by a nationally prominent independent pricing service and periodically verified through other pricing services; in the case of securities for which market quotations are readily available, securities are valued at the mean of bid and asked quotations and, in the case of other securities, at fair value determined under procedures established by and under the general supervision of the Board of Trustees. Securities which mature in 60 days or less are valued at amortized cost if their term to maturity at purchase is 60 days or less, or by amortizing their unrealized appreciation or depreciation on the 61st day prior to maturity, if their term to maturity at purchase exceeds 60 days. b) SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME: Securities transactions are recorded on the trade date. Realized gains and losses from securities transactions are reported on the identified cost basis. Interest income is recorded daily on the accrual basis and is adjusted for amortization of premium and accretion of original issue and market discount. c) FEDERAL INCOME TAXES: It is the policy of the Fund to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code applicable to certain investment companies. The Fund intends to make distributions of income and securities profits sufficient to relieve it from all, or substantially all, Federal income and excise taxes. d) ALLOCATION OF EXPENSES: Expenses, other than class-specific expenses, are allocated daily to each class of shares based on the relative net assets of each class. Class-specific expenses, which include distribution and service fees and any other items that are specifically attributed to a particular class, are charged directly to such class. e) USE OF ESTIMATES: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 3. FEES AND RELATED PARTY TRANSACTIONS a) MANAGEMENT ARRANGEMENTS: Aquila Management Corporation (the "Manager"), the Fund's founder and sponsor, serves as the Investment Adviser for the Fund under an Advisory and Administration Agreement with the Fund. Refer to Note 11 for Subsequent Event footnote. The Manager provides all investment management and administrative services to the Fund. The Manager's services include providing the office of the Fund and all related services as well as overseeing the activities of all the various support organizations to the Fund such as the shareholder servicing agent, custodian, legal counsel, fund accounting agent, auditors and distributor. For its services, the Manager is entitled to receive a fee which is payable monthly and computed as of the close of business each day at the annual rate of 0.50 of 1% on the Fund's average net assets. For the six months ended December 31, 2003, the Fund incurred management fees of $273,489 of which $264,272 was voluntarily waived. Specific details as to the nature and extent of the services provided by the Manager are more fully defined in the Fund's Prospectus and Statement of Additional Information. b) DISTRIBUTION AND SERVICE FEES: The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 (the "Rule") under the Investment Company Act of 1940. Under one part of the Plan, with respect to Class A Shares, the Fund is authorized to make distribution fee payments to broker-dealers or others ("Qualified Recipients") selected by Aquila Distributors, Inc. (the "Distributor") including, but not limited to, any principal underwriter of the Fund, with which the Distributor has entered into written agreements contemplated by the Rule and which have rendered assistance in the distribution and/or retention of the Fund's shares or servicing of shareholder accounts. The Fund makes payment of this service fee at the annual rate of 0.20% of the Fund's average net assets represented by Class A Shares. For the six months ended December 31, 2003 distribution fees on Class A Shares amounted to $90,628, of which the Distributor retained $2,364. Under another part of the Plan, the Fund is authorized to make payments with respect to Class C Shares to Qualified Recipients which have rendered assistance in the distribution and/or retention of the Fund's Class C shares or servicing of shareholder accounts. These payments are made at the annual rate of 0.75% of the Fund's average net assets represented by Class C Shares and for the six months ended December 31, 2003, amounted to $66,931. In addition, under a Shareholder Services Plan, the Fund is authorized to make service fee payments with respect to Class C Shares to Qualified Recipients for providing personal services and/or maintenance of shareholder accounts. These payments are made at the annual rate of 0.25% of the Fund's average net assets represented by Class C Shares and for the six months ended December 31, 2003 amounted to $22,310. The total of these payments with respect to Class C Shares amounted to $89,241, of which the Distributor retained $11,944. Specific details about the Plans are more fully defined in the Fund's Prospectus and Statement of Additional Information. Under a Distribution Agreement, the Distributor serves as the exclusive distributor of the Fund's shares. Through agreements between the Distributor and various broker-dealer firms ("dealers"), the Fund's shares are sold primarily through the facilities of these dealers having offices within Utah, with the bulk of sales commissions inuring to such dealers. For the six months ended December 31, 2003, total commissions on sales of Class A Shares amounted to $265,096, of which the Distributor received $22,711. c) OTHER RELATED PARTY TRANSACTIONS: For the six months ended December 31, 2003, the Fund incurred $17,823 of legal fees allocable to Hollyer Brady Smith & Hines LLP counsel to the Fund for legal services in conjunction with the Fund's ongoing operations. The Secretary of the Fund is a Partner of Hollyer Brady Smith & Hines LLP. 4. PURCHASES AND SALES OF SECURITIES During the six months ended December 31, 2003, purchases of securities and proceeds from the sales of securities aggregated $23,343,075 and $6,082,002, respectively. At December 31, 2003, the aggregate tax cost for all securities was $110,598,044. At December 31, 2003 the aggregate gross unrealized appreciation for all securities in which there is an excess of market value over tax cost amounted to $5,129,059 and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over market value amounted to $57,213, for a net unrealized appreciation of $5,071,846. 5. PORTFOLIO ORIENTATION Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Utah, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Utah and whatever effects these may have upon Utah issuers' ability to meet their obligations. The Fund is also permitted to invest in tax-free municipal obligations of issuers in other states and U.S. territories meeting comparable quality standards and providing income which is exempt from both regular Federal and Utah income taxes. The general policy of the Fund is to invest in such securities only when comparable securities of Utah issuers are not available in the market. At December 31, 2003, the Fund had 100% of its net assets invested in State of Utah municipal issues. 6. EXPENSES The Fund has negotiated an expense offset arrangement with its custodian wherein it receives credit toward the reduction of custodian fees and other Fund expenses whenever there are uninvested cash balances. The Statement of Operations reflects the total expenses before any offset, the amount of offset and the net expenses. It is the general intention of the Fund to invest, to the extent practicable, some or all of cash balances in income-producing assets rather than leave cash on deposit. 7. CAPITAL SHARE TRANSACTIONS Transactions in Capital Shares of the Fund were as follows:
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, 2003 (UNAUDITED) JUNE 30, 2003 ------------------------------- ------------------------------- SHARES AMOUNT SHARES AMOUNT ------------ ------------ ------------ ------------ CLASS A SHARES: Proceeds from shares sold .... 1,856,908 $ 18,773,572 3,092,149 $ 31,209,525 Reinvested distributions ..... 105,946 1,067,430 165,136 1,665,186 Cost of shares redeemed ...... (849,276) (8,548,010) (657,050) (6,646,533) ------------ ------------ ------------ ------------ Net change ................ 1,113,578 11,292,992 2,600,235 26,228,178 ------------ ------------ ------------ ------------ CLASS C SHARES: Proceeds from shares sold .... 484,501 4,904,141 957,135 9,712,558 Reinvested distributions ..... 18,799 189,345 20,771 209,789 Cost of shares redeemed ...... (159,479) (1,607,313) (63,577) (645,935) ------------ ------------ ------------ ------------ Net change ................ 343,821 3,486,173 914,329 9,276,412 ------------ ------------ ------------ ------------ CLASS Y SHARES: Proceeds from shares sold .... 11,784 119,284 84,124 860,591 Reinvested distributions ..... 1,536 15,493 720 7,408 Cost of shares redeemed ...... (98) (995) (2,553) (25,883) ------------ ------------ ------------ ------------ Net change ................ 13,222 133,782 82,291 842,116 ------------ ------------ ------------ ------------ Total transactions in Fund shares ....................... 1,470,621 $ 14,912,947 3,596,855 $ 36,346,706 ============ ============ ============ ============
8. TRUSTEES' FEES AND EXPENSES During the previous fiscal year ended June 30, 2003 there were six trustees, two of whom were affiliated with the Manager and are not paid any trustee fees. Each Trustee's fees paid during the year were at the annual rate of $3,500 for carrying out their responsibilities and attendance at regularly scheduled Board Meetings. If additional or special meetings are scheduled for the Fund, separate meeting fees are paid for each such meeting to those Trustees in attendance. The Fund also reimburses Trustees for expenses such as travel, accommodations, and meals incurred in connection with attendance at regularly scheduled or special Board Meetings and at the Annual Meeting of Shareholders. For the previous fiscal year ended June 30, 2003 such reimbursements averaged approximately $1,407 per Trustee. 9. SECURITIES TRADED ON A WHEN-ISSUED BASIS The Fund may purchase or sell securities on a when-issued basis. When-issued transactions arise when securities are purchased or sold by the Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction. Beginning on the date the Fund enters into a when-issued transaction, cash or other liquid securities are segregated in an amount equal to or greater than the amount of the when-issued transaction. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities. 10. DISTRIBUTIONS The Fund declares dividends daily from net investment income and makes payments monthly in additional shares at the net asset value per share, in cash, or in a combination of both, at the shareholder's option. Net realized capital gains, if any, are distributed annually and are taxable. The Fund intends to maintain, to the maximum extent possible, the tax-exempt status of interest payments received from portfolio municipal securities in order to allow dividends paid to shareholders from net investment income to be exempt from regular Federal and State of Utah income taxes. However, due to differences between financial statement reporting and Federal income tax reporting requirements, distributions made by the Fund may not be the same as the Fund's net investment income, and/or net realized securities gains. In this regard, the Fund credited distributions in excess of net investment income in the amount of $138,826 and debited additional paid-in capital in the amount of $138,826 at June 30, 2003. This adjustment had no impact on the Fund's aggregate net assets at June 30, 2003. Further, a small portion of the dividends may, under some circumstances, be subject to taxes at ordinary income and/or capital gain rates. At June 30, 2003, the Fund had a capital loss carryover of $2,686,182 of which $211,315 expires on June 30, 2008, $2,459,398 expires on June 30, 2009, and $15,469 expires on June 30, 2011. This carryover is available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code. To the extent that this loss is used to offset future realized capital gains, it is probable that the gains so offset will not be distributed. The tax character of distributions during the fiscal years ended June 30, 2003 and 2002 is as follows: Distributions from Year Ended June 30, 2003 2002 ---------- ---------- Net tax-exempt income $3,419,849 $2,418,521 Ordinary income 138,898 75,927 ---------- ---------- $3,558,747 $2,494,448 ========== ========== As of June 30, 2003, the components of distributable earnings on a tax basis were as follows: Accumulated net realized loss $(2,686,182) Unrealized appreciation 5,590,204 ----------- $ 2,904,022 =========== 11. SUBSEQUENT EVENT Effective January 1, 2004, Aquila Management Corporation, founder of the Fund, assigned its Advisory and Administration Agreement to its wholly-owned subsidiary, Aquila Investment Management LLC, which will continue the management of the Fund. The transfer was made for reasons of corporate and tax planning and will have no effect on the management of the Fund or the fees being paid. TAX-FREE FUND FOR UTAH FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Class A ---------------------------------------------------------------------- Six Months Ended Year Ended June 30, 12/31/03 ------------------------------------------------------ (unaudited) 2003 2002 2001 2000 1999 ---------- ------ ------ ------ ------ ------ Net asset value, beginning of period ............. $10.31 $9.85 $9.65 $9.35 $9.88 $10.24 ------ ------ ------ ------ ------ ------ Income (loss) from investment operations: Net investment income + ....................... 0.21 0.44 0.46 0.48 0.48 0.49 Net gain (loss) on securities (both realized and unrealized) ............................ (0.08) 0.48 0.22 0.32 (0.44) (0.36) ------ ------ ------ ------ ------ ------ Total from investment operations .............. 0.13 0.92 0.68 0.80 0.04 0.13 ------ ------ ------ ------ ------ ------ Less distributions (note 10): Dividends from net investment income .......... (0.23) (0.46) (0.48) (0.50) (0.51) (0.49) Distributions from capital gains .............. - - - - (0.06) - ------ ------ ------ ------ ------ ------ Total distributions ........................... (0.23) (0.46) (0.48) (0.50) (0.57) (0.49) ------ ------ ------ ------ ------ ------ Net asset value, end of period ................... $10.21 $10.31 $9.85 $9.65 $9.35 $9.88 ====== ====== ====== ====== ====== ====== Total return (not reflecting sales charge) ....... 1.30%* 9.55% 7.22% 8.72% 0.57% 1.19% Ratios/supplemental data Net assets, end of period (in thousands) ...... $95,858 $85,329 $55,957 $34,321 $34,171 $47,251 Ratio of expenses to average net assets ....... 0.48%** 0.43% 0.46% 0.48% 0.42% 0.45% Ratio of net investment income to average net assets ................................. 4.21%** 4.31% 4.65% 4.95% 5.06% 4.57% Portfolio turnover rate ....................... 5.70%* 6.43% 27.42% 44.17% 48.99% 87.49% The expense and net investment income ratios without the effect of the voluntary waiver of a portion of the management fee and the voluntary expense reimbursement were: Ratio of expenses to average net assets ....... 0.95%** 1.02% 1.00% 1.11% 1.11% 1.04% Ratio of net investment income to average net assets ................................. 3.74%** 3.72% 4.11% 4.32% 4.37% 3.98% The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were: Ratio of expenses to average net assets ....... 0.47%** 0.42% 0.40% 0.39% 0.39% 0.38%
- -------- Note: Effective July 16, 1998, Zions First National Bank became the Fund's Investment Sub-Adviser replacing First Security Investment Management, Inc. Effective August 1, 2001, Aquila Management Corporation became the Fund's Investment Adviser replacing Zions First National Bank which was the sub-adviser. + Per share amounts have been calculated using the monthly average shares method. * Not annualized ** Annualized See accompanying notes to financial statements. TAX-FREE FUND FOR UTAH FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Class C ---------------------------------------------------------------------- Six Months Ended Year Ended June 30, 12/31/03 ------------------------------------------------------ (unaudited) 2003 2002 2001 2000 1999 ---------- ------ ------ ------ ------ ------ Net asset value, beginning of period ............. $10.30 $9.85 $9.64 $9.35 $9.87 $10.23 ------ ------ ------ ------ ------ ------ Income (loss) from investment operations: Net investment income + ....................... 0.17 0.34 0.37 0.38 0.38 0.38 Net gain (loss) on securities (both realized and unrealized) ................... (0.08) 0.48 0.23 0.31 (0.42) (0.35) ------ ------ ------ ------ ------ ------ Total from investment operations ................. 0.09 0.82 0.60 0.69 (0.04) 0.03 ------ ------ ------ ------ ------ ------ Less distributions (note 10): Dividends from net investment income .......... (0.19) (0.37) (0.39) (0.40) (0.42) (0.39) Distributions from capital gains .............. - - - - (0.06) - ------ ------ ------ ------ ------ ------ Total distributions ........................... (0.19) (0.37) (0.39) (0.40) (0.48) (0.39) ------ ------ ------ ------ ------ ------ Net asset value, end of period ................... $10.20 $10.30 $9.85 $9.64 $9.35 $9.87 ====== ====== ====== ====== ====== ====== Total return (not reflecting sales charge) ....... 0.89%* 8.48% 6.36% 7.52% (0.33)% 0.18% Ratios/supplemental data Net assets, end of period (in thousands) ...... $19,768 $16,420 $6,694 $1,874 $1,036 $1,667 Ratio of expenses to average net assets ....... 1.27%** 1.31% 1.34% 1.47% 1.43% 1.45% Ratio of net investment income to average net assets ......................... 3.40%** 3.39% 3.72% 3.93% 4.07% 3.57% Portfolio turnover rate ....................... 5.70%* 6.43% 27.42% 44.17% 48.99% 87.49% The expense and net investment income ratios without the effect of the voluntary waiver of a portion of the management fee and the voluntary expense reimbursement were: Ratio of expenses to average net assets ....... 1.75%** 1.81% 1.78% 1.89% 1.91% 1.85% Ratio of net investment income to average net assets ......................... 2.93%** 2.89% 3.28% 3.51% 3.58% 3.17% The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were: Ratio of expenses to average net assets ....... 1.27%** 1.30% 1.28% 1.39% 1.39% 1.37%
Class Y ---------------------------------------------------------------------- Six Months Ended Year Ended June 30, 12/31/03 ------------------------------------------------------ (unaudited) 2003 2002 2001 2000 1999 ---------- ------ ------ ------ ------ ------ Net asset value, beginning of period ............. $10.34 $9.89 $9.68 $9.36 $9.88 $10.24 ------ ------ ------ ------ ------ ------ Income (loss) from investment operations: Net investment income + ....................... 0.23 0.42 0.50 0.49 0.45 0.45 Net gain (loss) on securities (both realized and unrealized) ................... (0.09) 0.50 0.20 0.34 (0.38) (0.32) ------ ------ ------ ------ ------ ------ Total from investment operations ................. 0.14 0.92 0.70 0.83 0.07 0.13 ------ ------ ------ ------ ------ ------ Less distributions (note 10): Dividends from net investment income .......... (0.24) (0.47) (0.49) (0.51) (0.53) (0.49) Distributions from capital gains .............. - - - - (0.06) - ------ ------ ------ ------ ------ ------ Total distributions ........................... (0.24) (0.47) (0.49) (0.51) (0.59) (0.49) ------ ------ ------ ------ ------ ------ Net asset value, end of period ................... $10.24 $10.34 $9.89 $9.68 $9.36 $9.88 ====== ====== ====== ====== ====== ====== Total return (not reflecting sales charge) ....... 1.41%* 9.55% 7.41% 9.05% 0.86% 1.19% Ratios/supplemental data Net assets, end of period (in thousands) ...... $1,010 $883 $30 $5 $0.1 $5 Ratio of expenses to average net assets ....... 0.28%** 0.30% 0.36% 0.42% 0.42% 0.43% Ratio of net investment income to average net assets ......................... 4.42%** 4.17% 4.75% 4.83% 4.88% 4.45% Portfolio turnover rate ....................... 5.70%* 6.43% 27.42% 44.17% 48.99% 87.49% The expense and net investment income ratios without the effect of the voluntary waiver of a portion of the management fee and the voluntary expense reimbursement were: Ratio of expenses to average net assets ....... 0.75%** 0.78% 0.80% 0.64% 0.86% 0.96% Ratio of net investment income to average net assets ......................... 3.94%** 3.70% 4.31% 4.62% 4.43% 3.92% The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were: Ratio of expenses to average net assets ....... 0.27%** 0.29% 0.30% 0.36% 0.39% 0.34%
- ---------------- Note: Effective July 16, 1998, Zions First National Bank became the Fund's Investment Sub-Adviser replacing First Security Investment Management, Inc. Effective August 1, 2001, Aquila Management Corporation became the Fund's Investment Adviser replacing Zions First National Bank which was the sub-adviser. + Per share amounts have been calculated using the monthly average shares method. * Not annualized ** Annualized See accompanying notes to financial statements. SHAREHOLDER MEETING RESULTS (UNAUDITED) The Annual Meeting of Shareholders of Tax-Free Fund For Utah (the "Fund") was held on September 26, 2003. The holders of shares representing approximately 76% of the total net asset value of the shares entitled to vote were present in person or by proxy. At the meeting, the following matters were voted upon and approved by the shareholders (the resulting votes are presented below). 1. To elect Trustees. Number of Votes: TRUSTEE FOR WITHHELD ------- --- -------- Lacy B. Herrmann 7,584,343 27,293 Gary C. Cornia 7,592,510 19,126 William L. Ensign 7,592,510 19,126 Diana P. Herrmann 7,576,793 34,843 Lyle W. Hillyard 7,581,040 30,596 Anne J. Mills 7,582,907 28,729 2. To ratify the selection of KPMG LLP as the Fund's independent auditors. Number of Votes: FOR AGAINST ABSTAIN --- ------- ------- 7,510,954 60,346 40,336 INFORMATION AVAILABLE (UNAUDITED) Much of the information that the funds in the Aquila(SM) Group of Funds produce is automatically sent to you and all other shareholders. Specifically, you are routinely sent the entire list of portfolio of securities of your fund twice a year in the semi-annual and annual reports you receive. You should know, however, that we prepare, and have available, portfolio listings at the end of each quarter. Whenever you may be interested in seeing a listing of your trust's portfolio other than in your shareholder reports, please check our website (www.aquilafunds.com) or call us at 1-800-437-1020. FOUNDER AQUILA MANAGEMENT CORPORATION MANAGER AQUILA investment MANAGEMENT LLC 380 Madison Avenue, Suite 2300 New York, New York 10017 BOARD OF TRUSTEES Lacy B. Herrmann, Chairman Gary C. Cornia William L. Ensign Diana P. Herrmann Lyle W. Hillyard Anne J. Mills OFFICERS Diana P. Herrmann, Vice Chair and President Jerry G. McGrew, Senior Vice President Kimball L. Young, Senior Vice President and Co-Portfolio Manager Thomas S. Albright, Vice President and Co-Portfolio Manager M. Kayleen Willis, Vice President Joseph P. DiMaggio, Chief Financial Officer and Treasurer Edward M.W. Hines, Secretary DISTRIBUTOR AQUILA DISTRIBUTORS, INC. 380 Madison Avenue, Suite 2300 New York, New York 10017 CUSTODIAN BANK ONE TRUST COMPANY, N.A. 1111 Polaris Parkway Columbus, Ohio 43240 TRANSFER AND SHAREHOLDER SERVICING AGENT PFPC INC. 760 Moore Road King of Prussia, Pennsylvania 19406 INDEPENDENT AUDITORS KPMG LLP 757 Third Avenue New York, New York 10017 Further information is contained in the Prospectus, which must precede or accompany this report. SEMI-ANNUAL REPORT DECEMBER 31, 2003 [Logo of Tax-Free Fund for Utah: a rectangle containing desert boulders sun with the rising behind them] TAX-FREE FUND FOR UTAH A TAX-FREE INCOME INVESTMENT [Logo of the Aquila Group of Funds: an eagle's head] ONE OF THE AQUILASM GROUP OF FUNDS ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. 905: Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) as of a date within 90 days of the fling of this report, the registrant's chief financial and executive officers have concluded that the disclosure controls and procedures of the registrant are appropriately designed to ensure that information required to be disclosed in the registrant's reports that are filed under the Securities Exchange Act of 1934 are accumulated and communicated to registrant's management, including its principal executive officer(s) and principal financial officer(s), to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the Securities and Exchange Commission. (b) There have been no significant changes in registrant's internal controls or in other factors that could significantly affect registrant's internal controls subsequent to the date of the most recent evaluation, including no significant deficiencies or material weaknesses that required corrective action. ITEM 10. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. (b) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TAX-FREE FUND FOR UTAH By: /s/ Lacy B. Herrmann - --------------------------------- Chairman of the Board March 8, 2004 By: /s/ Diana P. Herrmann - --------------------------------- Vice Chair and President March 8, 2004 By: /s/ Joseph P. DiMaggio - ----------------------------------- Chief Financial Officer March 8, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Lacy B. Herrmann - --------------------------------- Lacy B. Herrmann Chairman of the Board March 8, 2004 By: /s/ Diana P. Herrmann - --------------------------------- Diana P. Herrmann Vice Chair and President March 8, 2004 By: /s/ Joseph P. DiMaggio - ----------------------------------- Joseph P. DiMaggio Chief Financial Officer March 8, 2004 TAX-FREE FUND FOR UTAH EXHIBIT INDEX (a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. (b) Certification of chief executive officer and chief financial officer as required by Rule 30a-2(b) of the Investment Company Act of 1940. EX-99.CERT 2 tffu302cert.txt SECTION 302 CERTIFICATIONS EX-99.CERT CERTIFICATIONS I, Lacy B. Herrmann, certify that: 1. I have reviewed this report on Form N-CSR of Tax-Free Fund For Utah; 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 included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report ("Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: March 8, 2004 /s/ Lacy B. Herrmann - ---------------------- Title: Chairman of the Board I, Diana P. Herrmann, certify that: 1. I have reviewed this report on Form N-CSR of Tax-Free Fund For Utah; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 2. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report ("Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: March 8, 2004 /s/ Diana P. Herrmann - -------------------------------- Title: Vice Chair and President I, Joseph P. DiMaggio, certify that: 1. I have reviewed this report on Form N-CSR of Tax-Free Fund For Utah; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 2. Based on my knowledge, the financial statements, other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report ("Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: March 8, 2004 /s/ Joseph P. DiMaggio - ------------------------ Title: Chief Financial Officer EX-99.906 3 tffu906cert.txt SECTION 906 CERTIFICATIONS CERTIFICATION Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002 (subsections and (b) of section 1350, chapter 63 of title 18,United States Code), each of the undersigned officers of Tax-Free Fund For Utah, do hereby certify to such officer's knowledge, that: The report on Form N-CSR of Tax-Free Fund For Utah for the period ended December 31, 2003 (the "Form N-CSR")fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of Tax-Free Fund For Utah. Dated: March 8, 2004 /s/ Lacy B. Herrmann --------------------- Lacy B. Herrmann Chairman of the Board Tax-Free Fund For Utah Dated: March 8, 2004 /s/ Diana P. Herrmann ---------------------- Vice Chair and President Tax-Free Fund For Utah Dated: March 8, 2004 /s/ Joseph P. DiMaggio ----------------------- Chief Financial Officer Tax-Free Fund for Utah A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Tax-Free Fund For Utah and will be retained by Tax-Free Fund For Utah and furnished to the Securities and Exchange Commission or its staff upon request. This certification is being furnished solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Report or as a separate disclosure document. -----END PRIVACY-ENHANCED MESSAGE-----