-----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, EdfMk4Km9xTqjCVBwo+UY245hcjzPnCm5IMPCANLP6Tpp28iW1a//ulY7/NUEf7a DCG3noIT58Ogp3VX8/Lk0Q== 0000872032-07-000003.txt : 20070309 0000872032-07-000003.hdr.sgml : 20070309 20070309094614 ACCESSION NUMBER: 0000872032-07-000003 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20061231 FILED AS OF DATE: 20070309 DATE AS OF CHANGE: 20070309 EFFECTIVENESS DATE: 20070309 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: 07682697 BUSINESS ADDRESS: STREET 1: 380 MADISON AVE STREET 2: SUITE 2300 CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2126976666 MAIL ADDRESS: STREET 1: 380 MADISON AVE., STE 2300 CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: TAX FREE FUND FOR UTAH DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PLEIADES TAX FREE FUND DATE OF NAME CHANGE: 19920514 0000872032 S000009140 TAX-FREE FUND FOR UTAH C000024856 TAX-FREE FUND FOR UTAH CLASS A UTAHX C000024857 TAX-FREE FUND FOR UTAH CLASS C UTACX C000024858 TAX-FREE FUND FOR UTAH CLASS I UTAIX C000024859 TAX-FREE FUND FOR UTAH CLASS Y UTAYX N-CSR 1 tffuncsr.txt TAX-FREE FUND FOR UTAH 12/31/06 N-CSR 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: 12/31/06 FORM N-CSR ITEM 1. REPORTS TO STOCKHOLDERS. SEMI-ANNUAL REPORT December 31, 2006 [LOGO OF TAX-FREE FUND FOR UTAH: A RECTANGLE CONTAINING DESERT BOULDERS WITH THE SUN RISING BEHIND THEM](SM) TAX-FREE FUND FOR UTAH A TAX-FREE INCOME INVESTMENT [LOGO OF THE AQUILA GROUP OF FUNDS: ONE OF THE AN EAGLE'S HEAD] AQUILA GROUP OF FUNDS(SM) [LOGO OF TAX-FREE FUND FOR UTAH: A RECTANGLE CONTAINING DESERT BOULDERS WITH THE SUN RISING BEHIND THEM](SM) SERVING UTAH INVESTORS FOR MORE THAN A DECADE TAX-FREE FUND FOR UTAH "TAX-FREE IN BLACK AND WHITE" February, 2007 Dear Fellow Shareholder: We have all seen and heard the words "tax-free" over and over in various contexts. In fact, the name of the Fund contains the words "tax-free." But, what does that really mean to you in black and white? As you know, you have to pay federal, state, and/or local taxes on the dividends distributed to you by a taxable mutual fund. Thus, a bond fund which invests in tax-free municipal bonds, such as Tax-Free Fund For Utah, may actually generate more net dividend income than a taxable bond fund with a higher stated yield. How is this possible? Let's use a simple example. Suppose you invest $10,000 in a hypothetical TAX-FREE municipal bond fund with a yield of 4%, paying dividends that are EXEMPT FROM FEDERAL INCOME TAXES, and you also invest $10,000 in a hypothetical TAXABLE bond fund with a yield of 5.5%, paying dividends that are TAXABLE AT THE FEDERAL LEVEL. The example below shows the outcome for an investor in the 33% federal income tax bracket. As you can see, your investment in the tax-free municipal bond fund would have ended up with more after-tax income even though the fund's yield was lower. [BAR CHART] Federal Income Interest Income Taxes After Taxes Tax-Free Municipal Bond $400 Fund Yielding 4% (Assumes no taxes) Taxable Bond Fund Yielding 5.5% $181.50 $368.50 Tax Rate 33% To help you compare taxable bond funds versus tax-free municipal bond funds, a taxable-equivalent yield is often used. The taxable-equivalent yield provides you with the rate that a taxable bond fund would have to yield to give you the same after-tax yield as a tax-free municipal bond fund. (You should be aware that the calculation does not take into account the impact of state income taxes, or any alternative minimum taxes, to which some investors may be subject.) NOT A PART OF THE SEMI-ANNUAL REPORT In its simplest terms, - -------------------------------------------------------------------------------- Yield of tax-free municipal bond fund - ------------------------------------- = Your taxable-equivalent yield 1.00 - your federal income tax rate - -------------------------------------------------------------------------------- Using the above tax-free example of a 4% yield and a federal tax bracket of 33%, the calculation would be as follows: - -------------------------------------------------------------------------------- 4 - ----------- = 5.97% 1.00 - 0.33 - -------------------------------------------------------------------------------- In other words, a tax-free investment of 4.00% and a taxable investment of 5.97% would provide the same yield after taxes. EFFECT OF FEDERAL INCOME TAXES ON YIELDS OF TAX-EXEMPT AND TAXABLE INSTRUMENTS 4.00% 5.97% TAX-FREE BOND TAXABLE BOND Cash investment $ 10,000 $ 10,000 Interest $ 400 $ 597 33% Federal income tax $ 0 $ 197.01 Net return $ 400 $ 399.99 Yield on investment after federal taxes 4.0% 4.0% You should be aware that dividends paid by tax-free municipal bond funds, such as Tax-Free Fund For Utah, are often also exempt from state and/or local taxes. FACTORING IN THE EXEMPTION AT THE STATE AND/OR LOCAL LEVEL WOULD HAVE THE EFFECT OF INCREASING THE TAXABLE EQUIVALENT YIELD EVEN FURTHER. So, the next time that you see the phrase "tax-free," remember that in black and white, it oftentimes means more money into your pocket. Sincerely, /s/ Diana P. Herrmann /s/ Lacy B. Herrmann Diana P. Herrmann Lacy B. Herrmann President Founder and Chairman Emeritus For certain investors, some dividends of your Fund may be subject to Federal and State taxes, including the Alternative Minimum Tax. These hypothetical examples are not intended to predict or project investment performance. Your own results will vary. State and local taxes, fees and expenses, if any, are not taken into account. NOT A PART OF THE SEMI-ANNUAL REPORT TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS DECEMBER 31, 2006 (UNAUDITED)
RATING FACE MOODY'S/ AMOUNT GENERAL OBLIGATION BONDS (23.4%) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- CITY, COUNTY AND STATE (10.0%) Anderson, Indiana San District $ 505,000 4.600%, 07/15/23 AMBAC Insured ............................... Aaa/AAA $ 521,210 Brian Head, Utah 405,000 6.500%, 03/15/24 ............................................. NR/NR* 438,615 Cedar City, Utah Special Improvement District Assessment 235,000 5.050%, 09/01/10 ............................................. NR/NR* 239,221 215,000 5.200%, 09/01/11 ............................................. NR/NR* 222,069 Cedar Park, Texas 835,000 4.500%, 02/15/22 MBIA Insured ................................ Aaa/AAA 849,721 Clearfield City, Utah 2,095,000 5.125%, 02/01/18 MBIA Insured (pre-refunded) ................. Aaa/AAA 2,157,850 Coral Canyon, Utah Special Service District 140,000 4.850%, 07/15/17 ............................................. NR/NR* 144,418 580,000 5.700%, 07/15/18 ............................................. NR/NR* 599,111 Dawson County, Texas Hospital District 555,000 4.375%, 02/15/24 AMBAC Insured ............................... NR/AAA 557,425 Denton County, Texas 700,000 4.500%, 07/15/24 MBIA Insured ................................ Aaa/AAA 709,401 Draper, Utah 370,000 4.500%, 02/01/18 AMBAC Insured ............................... Aaa/NR 382,491 Hurricane, Utah 185,000 5.400%, 11/01/09 Radian Insured .............................. NR/AA 191,943 Laredo, Texas 300,000 4.250%, 08/15/21 AMBAC Insured ............................... Aaa/AAA 301,278 500,000 4.500%, 02/15/24 AMBAC Insured ............................... Aaa/AAA 506,425 Mckinney, Texas 1,700,000 4.500%, 08/15/23 XLCA Insured ................................ Aaa/AAA 1,725,415 1,375,000 5.000%, 08/15/24 XLCA Insured ................................ Aaa/AAA 1,467,180 Mesquite, Texas 510,000 4.625%, 02/15/22 FSA Insured ................................. Aaa/AAA 526,167 Nevada State 965,000 4.500%, 08/01/21 FSA Insured ................................. Aaa/AAA 984,792 San Antonio, Texas 125,000 4.750%, 02/01/24 FSA Insured ................................. Aaa/AAA 129,259
RATING FACE MOODY'S/ AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- CITY, COUNTY AND STATE (CONTINUED) San Patricio County Texas $ 450,000 4.600%, 04/01/25 AMBAC Insured ............................... Aaa/NR $ 460,867 Spokane County, Washington 420,000 4.500%, 12/01/23 MBIA Insured ............................... Aaa/AAA 427,946 Waco, Texas 2,560,000 4.500%, 02/01/24 MBIA Insured ................................ Aaa/AAA 2,585,677 Washington County, Utah 1,250,000 5.000%, 10/01/22 MBIA Insured ................................ Aaa/NR 1,318,075 Washington State 3,315,000 4.500%, 01/01/22 MBIA Insured ................................ Aaa/AAA 3,378,714 705,000 4.500%, 07/01/23 FSA Insured ................................. Aaa/AAA 707,926 Williamson County, Texas 460,000 4.500%, 02/15/26 FSA Insured ................................. Aaa/AAA 463,404 ------------- Total City, County and State ................................. 21,996,600 ------------- SCHOOL DISTRICT (13.4%) Borger, Texas Independent School District 400,000 4.500%, 02/15/24 ............................................. NR/AAA 405,660 500,000 4.500%, 02/15/25 ............................................. NR/AAA 504,450 Canutillo, Texas Independent School District 500,000 4.500%, 08/15/25 ............................................. NR/AAA 504,645 Carbon County, Utah School District 800,000 5.000%, 06/15/21 ............................................. Aaa/NR 844,624 Dallas, Texas Independent School District 2,500,000 5.000%, 08/15/29 ............................................. Aaa/AAA 2,639,075 Davis County, Utah School District 575,000 5.000%, 06/01/15 (pre-refunded) .............................. Aaa/NR 610,109 675,000 5.150%, 06/01/17 (pre-refunded) .............................. Aaa/NR 724,606 Dripping Springs, Texas 725,000 4.375%, 08/15/22 ............................................. Aaa/AAA 735,056 Eagle Mountain & Saginaw, Texas Independent School District 300,000 4.750%, 08/15/21 ............................................. Aaa/AAA 313,134 525,000 4.750%, 08/15/23 ............................................. Aaa/AAA 546,052 Frisco, Texas Independent School District 1,260,000 5.000%, 07/15/26 ............................................. Aaa/NR 1,328,645
RATING FACE MOODY'S/ AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- SCHOOL DISTRICT (CONTINUED) Galena Park, Texas Independent School District $ 295,000 4.625%, 08/15/25 ............................................. Aaa/NR $ 302,941 Iron County, Utah School District 1,375,000 4.000%, 01/15/18 ............................................. Aaa/NR 1,372,553 2,115,000 4.000%, 01/15/20 ............................................. Aaa/NR 2,091,693 1,260,000 5.000%, 01/15/21 ............................................. Aaa/NR 1,360,649 Jacksboro, Texas Independent School District 815,000 4.700%, 02/15/23 ............................................. NR/AAA 847,584 La Feria, Texas Independent School District 210,000 4.400%, 02/15/24 ............................................. Aaa/NR 211,275 Lancaster, Texas School District 300,000 4.375%, 02/15/22 ............................................. Aaa/AAA 303,360 Lindale, Texas Independent School District 440,000 4.250%, 02/15/21 ............................................. NR/AAA 441,782 1,000,000 4.250%, 02/15/22 ............................................. NR/AAA 1,002,690 445,000 4.375%, 02/15/23 ............................................. NR/AAA 449,072 Lovejoy, Texas Independent School District 200,000 4.500%, 02/15/24 ............................................. Aaa/AAA 202,436 Muleshoe, Texas Independent School District 380,000 4.500%, 02/15/22 ............................................. NR/AAA 380,304 250,000 4.500%,0 2/15/23 ............................................. NR/AAA 250,155 200,000 4.500%, 02/15/24 ............................................. NR/AAA 200,100 220,000 4.500%, 02/15/25 ............................................. NR/AAA 220,084 Navasota, Texas Independent School District 475,000 5.000%, 08/15/23 FGIC Insured ................................ Aaa/NR 503,015 North Summit County, Utah School District 760,000 5.000%, 02/01/23 ............................................. Aaa/NR 812,812 800,000 5.000%, 02/01/24 ............................................. Aaa/NR 853,432 Prosper, Texas Independent School District 395,000 4.125%, 08/15/21 ............................................. NR/AAA 392,199 Southern, Texas Independent School District 910,000 4.500%, 02/01/26 ............................................. Aaa/AAA 916,716 Spring, Texas Independent School District 300,000 4.750%, 08/15/23 ............................................. Aaa/AAA 310,482
RATING FACE MOODY'S/ AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- SCHOOL DISTRICT (CONTINUED) Tooele County, Utah School District $ 670,000 4.000%, 06/01/20 ............................................. Aaa/AAA $ 654,329 Van, Texas Independent School District 750,000 4.875%, 02/15/26 ............................................. Aaa/AAA 788,175 Washington County, Utah 440,000 5.000%, 10/01/18 XLCA Insured ................................ Aaa/NR 471,139 465,000 5.000%, 10/01/19 XLCA Insured ................................ Aaa/NR 497,587 490,000 5.000%, 10/01/20 XLCA Insured ................................ Aaa/NR 523,663 510,000 5.000%, 10/01/21 XLCA Insured ................................ Aaa/NR 544,338 535,000 5.000%, 10/01/22 XLCA Insured ................................ Aaa/NR 569,187 565,000 5.000%, 10/01/23 XLCA Insured ................................ Aaa/NR 599,561 320,000 5.000%, 10/01/24 XLCA Insured ................................ Aaa/NR 339,574 Washoe County, Nevada School District 200,000 4.625%, 06/01/23 FGIC Insured ................................ Aaa/AAA 205,630 Weber County, Utah School District 750,000 5.000%, 06/15/18 ............................................. Aaa/NR 791,835 Yakima County, Washington School District #208 750,000 4.500%, 12/01/23 FSA Insured ................................. Aaa/NR 756,007 ------------- Total School District ........................................ 29,322,415 ------------- Total General Obligation Bonds ............................... 51,319,015 ------------- REVENUE BONDS (75.5%) AIRPORT (1.2%) Clark County, Nevada Passenger Facility Charge 255,000 4.750%, 07/01/22 MBIA Insured AMT ............................ Aaa/AAA 259,478 Hillsborough County, Florida Aviation Authority 2,185,000 5.250%, 10/01/23 MBIA Insured AMT ............................ Aaa/AAA 2,314,396 ------------- Total Airport ................................................ 2,573,874 ------------- COUNTY (0.4%) Davis County, Utah Lease Revenue DMV Project 78,000 5.400%, 11/01/17 ............................................. NR/NR* 78,096 83,000 5.450%, 11/01/18 ............................................. NR/NR* 83,100 87,000 5.500%, 11/01/19 ............................................. NR/NR* 87,106 92,000 5.550%, 11/01/20 ............................................. NR/NR* 92,112
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- COUNTY (CONTINUED) Davis County, Utah Lease Revenue DMV Project (continued) $ 97,000 5.600%, 11/01/21 ............................................. NR/NR* $ 97,115 103,000 5.650%, 11/01/22 ............................................. NR/NR* 103,125 108,000 5.700%, 11/01/23 ............................................. NR/NR* 108,133 115,000 5.700%, 11/01/24 ............................................. NR/NR* 115,143 121,000 5.750%, 11/01/25 ............................................. NR/NR* 121,150 128,000 5.750%, 11/01/26 ............................................. NR/NR* 128,148 ------------- Total County ................................................. 1,013,228 ------------- EDUCATION (10.8%) Carmel, Indiana 2002 School Building Corp. 1,235,000 4.300%, 01/15/23 FSA Insured ................................. NR/AAA 1,239,360 1,525,000 4.300%, 07/15/23 FSA Insured ................................. NR/AAA 1,530,383 Clinton Prairie, Indiana Community School Building 675,000 4.625%, 01/15/19 FGIC Insured ................................ Aaa/AAA 704,234 Florida State Board of Education Public Education 210,000 4.500%, 06/01/25 FSA Insured ................................. Aaa/AAA 213,079 Laredo, Texas Independent School District Public Facility Corp. 190,000 5.000%, 08/01/24 AMBAC Insured ............................... Aaa/AAA 198,673 Nevada System Higher Education Certificates of Participation 1,000,000 5.000%, 07/01/25 AMBAC Insured ............................... NR/AAA 1,068,660 Salt Lake County, Utah Westminster College Project 115,000 5.050%, 10/01/10 ............................................. NR/BBB 117,545 100,000 5.500%, 10/01/19 ............................................. NR/BBB 103,366 1,200,000 5.000%, 10/01/22 ............................................. NR/BBB 1,228,932 1,250,000 5.000%, 10/01/25 ............................................. NR/BBB 1,279,237 1,000,000 5.750%, 10/01/27 ............................................. NR/BBB 1,024,080 Texas State College Student Loan Revenue 100,000 5.000%, 08/01/22 AMT ......................................... Aa1/AA 102,694 Texas State University System Financing Revenue 655,000 4.375%, 03/15/23 FSA Insured ................................. Aaa/AAA 657,875 Tyler, Texas Independent School District 325,000 5.000%, 02/15/26 FSA Insured ................................. Aaa/AAA 343,853
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- EDUCATION (CONTINUED) University of Nevada University Revenues $ 190,000 4.500%, 07/01/24 MBIA Insured ................................ Aaa/AAA $ 194,490 University of Utah University Revenues 770,000 5.000%, 04/01/18 MBIA Insured ................................ Aaa/AAA 828,043 Utah County, Utah School Facility Revenue 1,400,000 6.500%, 12/01/25 ............................................. NR/NR* 1,400,798 Utah State Board of Regents Auxiliary & Campus Facility 1,000,000 4.125%, 04/01/20 MBIA Insured ................................ Aaa/AAA 993,390 Utah State Board of Regents Dixie State College 120,000 5.500%, 05/01/14 MBIA Insured ................................ Aaa/AAA 130,649 130,000 5.500%, 05/01/15 MBIA Insured ................................ Aaa/AAA 141,471 400,000 5.100%, 05/01/21 MBIA Insured ................................ Aaa/AAA 421,284 Utah State Board of Regents Lease Revenue 410,000 4.500%, 05/01/20 AMBAC Insured .............................. Aaa/AAA 422,903 425,000 4.500%, 05/01/21 AMBAC Insured .............................. Aaa/AAA 437,376 450,000 4.625%, 05/01/22 AMBAC Insured .............................. Aaa/AAA 466,367 120,000 4.650%, 05/01/23 AMBAC Insured .............................. Aaa/AAA 124,406 Utah State Board of Regents Office Facility Revenue 450,000 5.050%, 02/01/20 MBIA Insured ................................ Aaa/AAA 471,915 360,000 5.125%, 02/01/22 MBIA Insured ................................ Aaa/AAA 379,271 Utah State Board of Regents Revenue 2,885,000 4.500%, 08/01/18 MBIA Insured ................................ Aaa/AAA 2,971,839 250,000 5.250%, 04/01/24 MBIA Insured ................................ Aaa/AAA 270,280 500,000 5.000%, 05/01/26 ............................................. Aa/AAA 530,970 Utah State Board of Regents Revenue University of Utah 1,045,000 5.000%, 04/01/23 MBIA Insured ................................ Aaa/AAA 1,110,898 Utah State Board of Regents Revenue University of Utah Hospital Revenue 1,595,000 5.000%, 08/01/19 MBIA Insured ................................ Aaa/AAA 1,686,298 Weber State University, Utah Revenue 100,000 5.250%, 04/01/24 FSA Insured ................................. Aaa/AAA 105,565 Weber State University, Utah Revenue Student Facilities System Series A 300,000 5.100%, 04/01/16 ............................................. NR/AA 317,292 425,000 5.250%, 04/01/19 ............................................. NR/AA 453,764 ------------- Total Education .............................................. 23,671,240 -------------
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- HEALTHCARE (0.6%) Harris County, Texas Health Facility Development Corp. $ 145,000 5.000%, 11/15/28 AMBAC Insured ............................... NR/AAA $ 149,038 Lee Memorial Health System, Florida Hospital Revenue 450,000 4.250%, 04/01/22 MBIA Insured ................................ Aaa/AAA 451,530 Murray City, Utah Hospital Revenue 595,000 5.000%, 05/15/22 MBIA Insured ................................ Aaa/AAA 597,553 Tarrant County, Texas Health Facilities Revenue 225,000 5.000%, 02/15/26 ............................................. Aaa/AAA 229,250 ------------- Total Healthcare ............................................. 1,427,371 ------------- HOUSING (10.6%) Florida Housing Finance Corp. Revenue AMT 435,000 4.750%, 01/01/16 ............................................. Aa2/AA 448,159 790,000 5.000%, 07/01/21 ............................................. Aa2/AA 820,131 Henderson, Nevada Local Improvement District 150,000 5.000%, 09/01/15 ............................................. NR/NR* 154,567 200,000 5.000%, 09/01/16 ............................................. NR/NR* 206,078 200,000 5.050%, 09/01/17 ............................................. NR/NR* 206,060 200,000 5.100%, 09/01/18 ............................................. NR/NR* 207,470 Indiana Housing & Community Development Authority 1,500,000 4.900%, 07/01/26 AMT ......................................... Aaa/NR 1,540,605 Indiana State Housing Finance Authority Single Family 245,000 4.850%, 07/01/22 AMT ......................................... Aaa/NR 250,441 Indianapolis, Indiana Multi-Family 500,000 4.850%, 01/01/21 AMT ......................................... Aaa/NR 513,790 Miami-Dade County, Florida Housing Finance Authority 535,000 5.000%, 11/01/23 FSA Insured AMT ............................. NR/AAA 553,618 Nevada Housing Multi-Family LOC US Bank 1,000,000 4.750%, 04/01/39 AMT ......................................... NR/AA 1,002,350 Orange County, Florida Housing Finance Authority 245,000 5.150%, 03/01/22 ............................................. Aaa/NR 249,030 Provo City, Utah Housing Authority 500,000 5.800%, 07/20/22 GNMA Collateralized ......................... Aaa/NR 513,125
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- HOUSING (CONTINUED) Seattle, Washington Housing Authority $ 730,000 4.400%, 11/01/21 AMT ......................................... NR/AAA $ 722,904 Snohomish County, Washington Housing Authority 185,000 4.875%, 09/01/12 AMT ......................................... NR/NR* 184,943 225,000 5.000%, 09/01/13 AMT ......................................... NR/NR* 226,123 185,000 5.000%, 09/01/14 AMT ......................................... NR/NR* 185,339 145,000 5.100%, 09/01/15 AMT ......................................... NR/NR* 145,796 South Dakota Housing Development Authority 1,250,000 4.900%, 05/01/26 AMT ......................................... Aa1/AAA 1,286,225 Texas State Housing Revenue 500,000 4.800%, 09/01/27 AMT ......................................... Aa1/AAA 507,750 Utah Housing Corporation Single Family Housing 270,000 4.000%, 07/01/11 AMT ......................................... Aaa/AAA 269,449 60,000 5.250%, 07/01/23 AMT ......................................... Aa2/AA 61,386 650,000 5.000%, 01/01/32 AMT ......................................... Aa2/AA 661,999 Utah Housing Corporation Single Family Mortgage 235,000 4.000%, 07/01/11 AMT ......................................... Aaa/AAA 235,660 335,000 4.600%, 07/01/15 AMT ......................................... Aaa/AAA 343,331 240,000 4.650%, 07/01/16 AMT ......................................... Aaa/AAA 246,283 50,000 5.150%, 07/01/23 AMT ......................................... Aaa/AAA 50,000 250,000 4.875%, 07/01/23 AMT ......................................... Aa3/AA- 257,615 1,310,000 5.000%, 07/01/25 AMT ......................................... Aa3/AA- 1,347,322 880,000 5.100%, 01/01/26 AMT ......................................... Aa3/AA- 902,167 975,000 5.000%, 07/01/31 AMT ......................................... Aa2/AA 995,602 Utah State Housing Agency Housing Revenue 140,000 5.650%, 07/01/27 AMT ......................................... Aa2/AA 145,043 Utah State Housing Corporation Single Family Housing Revenue 1,720,000 5.125%, 07/01/24 AMT ......................................... Aa3/AA- 1,775,453 Utah State Housing Finance Agency 5,000 6.350%, 07/01/11 Mezzanine Series G-1 ........................ AAA/NR 5,024 255,000 5.700%, 07/01/15 AMT ......................................... Aa3/AA- 261,462 130,000 5.650%, 07/01/16 Series 1994C ................................ Aaa/AAA 131,899 50,000 5.400%, 07/01/16 AMT ......................................... Aa2/AA 50,720 75,000 6.000%, 07/01/17 AMT ......................................... Aaa/AAA 76,405
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- HOUSING (CONTINUED) Utah State Housing Finance Agency (continued) $ 795,000 5.500%, 07/01/18 AMT ......................................... Aa3/AA- $ 822,841 90,000 5.300%, 07/01/18 AMT ......................................... Aaa/AAA 93,690 100,000 5.000%, 07/01/18 AMT ......................................... Aaa/AAA 101,825 170,000 5.400%, 07/01/20 AMT ......................................... Aa2/AA 174,935 375,000 5.600%, 07/01/23 AMT ......................................... Aa2/AA 385,496 105,000 5.700%, 07/01/26 MBIA Insured ................................ Aaa/AAA 105,595 Washington State Housing Finance Commission 2,290,000 4.800%, 12/01/21 AMT ......................................... Aaa/NR 2,323,136 Wyoming Community Development Authority Housing Revenue 150,000 4.600%, 12/01/12 AMT ......................................... Aa1/AA+ 153,088 225,000 4.350%, 12/01/16 AMT ......................................... Aa1/AA+ 227,419 580,000 4.700%, 06/01/17 AMT ......................................... Aa1/AA+ 596,872 520,000 4.700%, 12/01/17 AMT ......................................... Aa1/AA+ 535,127 120,000 5.000%, 12/01/22 ............................................. Aa1/AA+ 124,337 ------------- Total Housing ................................................ 23,385,685 ------------- 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 250,188 Utah County Environmental Improvement Revenue 935,000 5.050%, 11/01/17 ............................................. Baa1/BBB+ 990,922 ------------- Total Industrial Development & Pollution Control ............. 1,241,110 ------------- LEASE (8.5%) Celebration Community Development District, Florida 290,000 5.000%, 05/01/22 MBIA Insured ................................ Aaa/AAA 306,834 Clark County Nevada Improvement District 750,000 5.125%, 12/01/19 ............................................. NR/NR 771,037 Marion County, Indiana Convention & Recreational Facilities Authority 390,000 5.000%, 06/01/27 MBIA Insured ................................ Aaa/AAA 397,726 Murray City, Utah Municipal Building Authority 520,000 5.050%, 12/01/15 AMBAC Insured ............................... Aaa/NR 549,318
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- LEASE (CONTINUED) New Albany, Indiana Development Authority $ 500,000 4.250%, 02/01/22 ............................................. NR/A- $ 486,410 Red River, Texas Higher Education TCU Project 1,000,000 4.375%, 03/15/25 ............................................. Aa3/NR 990,650 Salt Lake County, Utah Municipal Building Authority 3,900,000 5.200%, 10/15/20 AMBAC Insured (pre-refunded) ................ Aaa/AAA 4,166,292 Spanish Fork, Utah Charter School 2,000,000 5.550%, 11/15/21 ............................................. NR/NR* 2,027,140 Utah County, Utah Municipal Building Authority 120,000 5.500%, 11/01/16 AMBAC Insured ............................... Aaa/NR 129,844 240,000 5.500%, 11/01/17 AMBAC Insured ............................... Aaa/NR 259,687 Utah State Building Ownership Authority 465,000 5.000%, 05/15/21 ............................................. Aa1/AA+ 499,494 1,755,000 5.250%, 05/15/23 ............................................. Aa1/AA+ 1,890,170 510,000 5.000%, 05/15/23 ............................................. Aa1/AA+ 546,190 1,845,000 5.250%, 05/15/24 ............................................. Aa1/AA+ 1,984,667 1,080,000 5.000%, 05/15/25 ............................................. Aa1/AA+ 1,143,299 Washington County - St. George, Utah Interlocal Agency 1,000,000 5.125%, 12/01/17 AMBAC Insured ............................... NR/AAA 1,023,610 100,000 5.125%, 12/01/22 AMBAC Insured ............................... NR/AAA 102,126 West Bountiful, Utah Courthouse 410,000 5.000%, 05/01/19 ............................................. NR/A- 442,103 West Valley City, Utah 865,000 5.000%, 08/01/21 AMBAC Insured ............................... Aaa/AAA 923,855 ------------- Total Lease .................................................. 18,640,452 ------------- TAX REVENUE (20.7%) Bay County, Florida Sales Tax 175,000 4.750%, 09/01/23 FSA Insured ................................. Aaa/NR 178,005 Bluffdale City, Utah Series 2004 295,000 6.000%, 12/01/13 ............................................. NR/NR* 299,304 310,000 6.000%, 12/01/14 ............................................. NR/NR* 314,851 330,000 6.000%, 12/01/15 ............................................. NR/NR* 330,871 350,000 6.000%, 12/01/16 ............................................. NR/NR* 351,046 370,000 6.000%, 12/01/17 ............................................. NR/NR* 371,140 395,000 6.000%, 12/01/18 ............................................. NR/NR* 396,288 420,000 6.000%, 12/01/19 ............................................. NR/NR* 421,407
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- TAX REVENUE (CONTINUED) Bluffdale, Utah Sales Tax $ 1,975,000 5.500%, 08/01/23 ............................................. NR/NR* $ 2,017,561 Bountiful, Utah Special Improvement District Special Assessment 203,000 5.000%, 06/01/14 ............................................. NR/NR* 203,104 213,000 5.150%, 06/01/15 ............................................. NR/NR* 213,185 224,000 5.300%, 06/01/16 ............................................. NR/NR* 224,193 236,000 5.500%, 06/01/17 ............................................. NR/NR* 236,307 249,000 5.650%, 06/01/18 ............................................. NR/NR* 249,391 Cache County, Utah Sales Tax 855,000 5.000%, 12/15/19 FGIC Insured ................................ Aaa/AAA 902,153 Clark County, Nevada Improvement District 250,000 5.000%, 08/01/16 ............................................. NR/NR* 257,542 Coral Canyon, Utah Special Service District 110,000 5.000%, 07/15/13 ............................................. NR/NR* 113,183 250,000 5.500%, 07/15/18 ............................................. NR/NR* 260,275 Fishers, Indiana Redevelopment Authority Lease 175,000 4.500%, 07/15/20 AMBAC Insured ............................... Aaa/AAA 179,174 Henderson, Nevada Local Improvement District 100,000 4.500%, 09/01/12 ............................................. NR/NR* 100,292 300,000 5.000%, 09/01/14 ............................................. NR/NR* 309,021 300,000 5.000%, 09/01/15 ............................................. NR/NR* 307,827 Holladay, Utah Redevelopment Agency 3,000,000 4.900%, 12/30/20 ............................................. NR/NR* 3,010,800 Jordanelle, Utah Special Service District 186,000 5.000%, 11/15/14 ............................................. NR/NR* 187,800 196,000 5.100%, 11/15/15 ............................................. NR/NR* 198,105 206,000 5.200%, 11/15/16 ............................................. NR/NR* 208,062 216,000 5.300%, 11/15/17 ............................................. NR/NR* 218,197 228,000 5.400%, 11/15/18 ............................................. NR/NR* 230,396 240,000 5.500%, 11/15/19 ............................................. NR/NR* 242,563 253,000 5.600%, 11/15/20 ............................................. NR/NR* 255,651 268,000 5.700%, 11/15/21 ............................................. NR/NR* 270,806 283,000 5.800%, 11/15/22 ............................................. NR/NR* 285,960 299,000 6.000%, 11/15/23 ............................................. NR/NR* 302,119
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- TAX REVENUE (CONTINUED) Jordanelle, Utah Special Service Improvement District $ 275,000 8.000%, 10/01/11 ............................................. NR/NR* $ 283,654 Lehi, Utah Sales Tax 610,000 5.000%, 06/01/21 FSA Insured ................................. Aaa/AAA 650,772 790,000 5.000%, 06/01/24 FSA Insured ................................. Aaa/AAA 838,111 Mesquite, Nevada New Special Improvement District 185,000 4.600%, 08/01/11 ............................................. NR/NR* 184,835 195,000 4.750%, 08/01/12 ............................................. NR/NR* 194,928 230,000 4.900%, 08/01/13 ............................................. NR/NR* 231,134 140,000 5.250%, 08/01/17 ............................................. NR/NR* 141,081 315,000 5.350%, 08/01/19 ............................................. NR/NR* 317,419 135,000 5.400%, 08/01/20 ............................................. NR/NR* 136,127 500,000 5.500%, 08/01/25 ............................................. NR/NR* 504,535 Mountain Regional Water District, Utah Special Assessment 1,800,000 7.000%, 12/01/18 ............................................. NR/NR* 1,853,748 Mountain Regional Water, Utah Special Service District 2,000,000 5.000%, 12/15/20 MBIA Insured ................................ Aaa/AAA 2,122,720 North Ogden, Utah Sales Tax 195,000 5.000%, 11/01/24 XLCA Insured ................................ Aaa/AAA 206,368 Payson City Utah Sales Tax 445,000 5.000%, 08/01/21 FSA Insured ................................. NR/AAA 477,534 Plainfield, Indiana Independent Redevelopment Authority 1,070,000 4.375%, 08/01/20 CIFG Assurance North America, Inc. Insured .............................................. Aaa/NR 1,082,080 Salt Lake City, Utah Sales Tax 265,000 5.250%, 02/01/13 ............................................. NR/AAA 284,220 1,320,000 5.250%, 02/01/15 ............................................. NR/AAA 1,410,064 100,000 5.250%, 02/01/17 ............................................. NR/AAA 106,680 Salt Lake County, Utah Sales Tax 955,000 5.000%, 02/01/21 ............................................. NR/AAA 1,021,000
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- TAX REVENUE (CONTINUED) Salt Lake County, Utah Sales Tax (continued) $ 1,725,000 5.000%, 08/01/21 ............................................. NR/AAA $ 1,850,425 1,005,000 5.000%, 02/01/22 ............................................. NR/AAA 1,073,028 1,060,000 5.000%, 02/01/23 ............................................. NR/AAA 1,130,236 1,115,000 5.000%, 02/01/24 ............................................. NR/AAA 1,191,266 Sandy City, Utah Sales Tax 520,000 5.000%, 09/15/18 AMBAC Insured ............................... Aaa/AAA 547,851 605,000 5.000%, 09/15/20 AMBAC Insured ............................... Aaa/AAA 636,145 South Jordan, Utah Sales Tax 570,000 5.000%, 08/15/15 AMBAC Insured ............................... Aaa/AAA 602,878 South Jordan, Utah Special Assignment 1,000,000 6.875%, 11/01/17 ............................................. NR/NR* 1,022,700 South Weber City, Utah 525,000 5.000%, 01/15/24 MBIA Insured ................................ Aaa/AAA 554,584 Springville, Utah Special Improvement District 400,000 5.500%, 1/15/17 .............................................. NR/NR* 400,572 423,000 5.650%, 1/15/18 .............................................. NR/NR* 423,626 446,000 5.800%, 1/15/19 .............................................. NR/NR* 446,656 472,000 5.900%, 1/15/20 .............................................. NR/NR* 472,717 500,000 6.000%, 1/15/21 .............................................. NR/NR* 500,785 Utah Transportation Authority 250,000 4.250%, 06/15/25 FSA Insured ................................. Aaa/AAA 245,600 Utah Water Finance Agency 775,000 5.100%, 07/01/18 AMBAC Insured ............................... Aaa/NR 819,400 510,000 5.000%, 07/01/18 AMBAC Insured ............................... Aaa/NR 540,998 260,000 5.000%, 06/01/19 MBIA Insured ................................ Aaa/AAA 264,553 685,000 5.000%, 07/01/19 AMBAC Insured ............................... Aaa/NR 727,443 Wasatch County, Utah Building Authority 130,000 5.000%, 10/01/15 ............................................. A3/NR 135,888 135,000 5.000%, 10/01/16 ............................................. A3/NR 140,792 Wasatch County, Utah Sales Tax 205,000 5.000%, 12/01/16 AMBAC Insured ............................... Aaa/AAA 217,790 210,000 5.000%, 12/01/17 AMBAC Insured ............................... Aaa/AAA 222,191 225,000 5.000%, 12/01/18 AMBAC Insured ............................... Aaa/AAA 237,454
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- TAX REVENUE (CONTINUED) Washington City, Utah Sales Tax $ 680,000 5.250%, 11/15/17 AMBAC Insured ............................... Aaa/AAA $ 737,338 Washoe County, Nevada Tax Revenue 210,000 5.000%, 12/01/23 MBIA Insured ................................ Aaa/AAA 213,854 Weber County, Utah Sales Tax 385,000 5.000%, 07/01/23 AMBAC Insured ............................... Aaa/NR 406,368 West Valley City, Utah Redevelopment Agency 1,625,000 5.000%, 03/01/21 ............................................. NR/A- 1,697,930 320,000 5.000%, 03/01/22 ............................................. NR/A- 333,914 350,000 5.000%, 03/01/23 ............................................. NR/A- 364,732 1,000,000 5.000%, 03/01/24 ............................................. NR/A- 1,040,700 West Valley City, Utah Sales Tax 250,000 5.000%, 07/15/20 AMBAC Insured ............................... Aaa/AAA 263,177 340,000 5.000%, 07/15/21 MBIA Insured ................................ Aaa/AAA 359,295 ------------- Total Tax Revenue ............................................ 45,516,475 ------------- TRANSPORTATION (4.2%) Florida State Turnpike Authority Turnpike Revenue 500,000 4.500%, 07/01/22 MBIA Insured ................................ Aaa/AAA 515,065 Port of Seattle, Washington 200,000 5.100%, 04/01/24 AMT FGIC Insured ............................ Aaa/AAA 203,654 Utah Transit Authority Sales Tax & Transportation Revenue 1,000,000 5.400%, 12/15/16 FSA Insured (pre-refunded) .................. Aaa/AAA 1,026,730 3,300,000 4.125%, 06/15/21 FSA Insured ................................. Aaa/AAA 3,313,431 3,450,000 4.125%, 06/15/22 FSA Insured ................................. Aaa/AAA 3,424,608 590,000 5.000%, 06/15/24 FSA Insured ................................. Aaa/AAA 632,551 100,000 5.000%, 06/15/25 FSA Insured ................................. Aaa/AAA 107,212 ------------- Total Transportation ......................................... 9,223,251 ------------- UTILITY (10.4%) Alaska Industrial Development & Export Authority 400,000 4.625%, 12/01/16 AMBAC Insured AMT ........................... NR/AAA 407,988
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- UTILITY (CONTINUED) Cowlitz County, Washington Public Utility District Electric Revenue $ 1,000,000 4.500%, 09/01/26 MBIA Insured ................................ Aaa/AAA $ 1,010,890 Eagle Mountain, Utah Gas & Electric 1,385,000 4.250%, 06/01/20 Radian Insured .............................. Aa3/AA 1,372,383 1,440,000 5.000%, 06/01/21 Radian Insured .............................. Aa3/AA 1,508,371 1,515,000 5.000%, 06/01/22 Radian Insured .............................. Aa3/AA 1,582,584 Garland, Texas Water & Sewer 440,000 4.500%, 03/01/21 AMBAC Insured ............................... NR/AAA 448,884 Indianapolis, Indiana Gas Utility 290,000 5.000%, 08/15/24 AMBAC Insured ............................... Aaa/AAA 294,385 Intermountain Power Agency Utilities Light & Power Service, Utah 1,470,000 5.250%, 07/01/15 MBIA Insured ................................ Aaa/AAA 1,517,775 775,000 5.000%, 07/01/18 FSA Insured ................................. Aaa/AAA 824,391 1,380,000 5.000%, 07/01/19 MBIA Insured ................................ Aaa/AAA 1,432,909 Lower Colorado River Authority, Texas 175,000 5.000%, 05/15/26 FSA Insured ................................. Aaa/AAA 181,368 Manti City, Utah Electric System Revenue 603,000 5.750%, 02/01/17 ............................................. NR/NR* 632,010 Murray City, Utah Utility Electric Revenue 1,340,000 5.000%, 06/01/25 AMBAC Insured ............................... Aaa/NR 1,422,490 St. George, Utah Electric Revenue 1,910,000 4.500%, 06/01/20 FSA Insured ................................. Aaa/NR 1,965,180 Salem, Utah Electric Revenue 125,000 5.300%, 11/01/07 ............................................. NR/NR* 125,661 130,000 5.350%, 11/01/08 ............................................. NR/NR* 131,838 140,000 5.400%, 11/01/09 ............................................. NR/NR* 142,591 Santa Clara Utah Storm Drain Revenue 877,000 5.100%, 09/15/26 ............................................. NR/NR* 897,978 Seattle, Washington Municipal Light & Power 1,360,000 4.500%, 08/01/19 FSA Insured ................................. Aaa/AAA 1,403,126
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- UTILITY (CONTINUED) Southern Utah Valley Power System $ 210,000 5.250%, 09/15/13 MBIA Insured ................................ Aaa/AAA $ 226,124 225,000 5.250%, 09/15/14 MBIA Insured ................................ Aaa/AAA 243,355 235,000 5.250%, 09/15/15 MBIA Insured ................................ Aaa/AAA 254,171 185,000 5.125%, 09/15/21 MBIA Insured ................................ Aaa/AAA 196,370 Springville, Utah Electric Revenue 550,000 5.600%, 03/01/09 ............................................. Baa1/NR 564,212 Tacoma, Washington Solid Waste Utility Revenue 1,000,000 5.000%, 12/01/23 XLCA Insured ................................ Aaa/AAA 1,070,960 Utah Assessed Municipal Power System 790,000 5.250%, 12/01/09 ............................................. NR/A- 811,583 1,000,000 5.000%, 04/01/21 FSA Insured ................................. Aaa/AAA 1,055,820 Washington, Utah Electric Revenue 985,000 5.000%, 09/01/21 XLCA Insured ................................ Aaa/NR 1,047,370 ------------- Total Utility ................................................ 22,772,767 ------------- WATER AND SEWER (7.5%) Ashley Valley, Utah 140,000 9.500%, 01/01/08 AMBAC Insured ............................... Aaa/AAA 142,145 Eagle Mountain, Utah 750,000 5.800%, 11/15/16 ACA Insured ................................. NR/A 792,412 Granger and Hunter, Utah Improvement District 350,000 5.000%, 03/01/18 FSA Insured (pre-refunded) .................. Aaa/NR 355,614 Jordan Valley, Utah Water Conservancy District 715,000 4.375%, 10/01/18 AMBAC Insured ............................... Aaa/AAA 730,337 Mesquite, Texas Waterworks & Sewer 225,000 4.500%, 03/01/24 FSA Insured ................................. Aaa/AAA 228,152 Murray City, Utah 465,000 5.000%, 10/01/17 AMBAC Insured ............................... Aaa/NR 495,323 390,000 5.000%, 10/01/18 AMBAC Insured ............................... Aaa/NR 414,242 440,000 5.000%, 10/01/19 AMBAC Insured ............................... Aaa/NR 467,086 North Davis County, Utah Sewer District 1,350,000 5.000%, 03/01/21 AMBAC Insured ............................... Aaa/NR 1,434,969 Orem, Utah Water & Storm Sewer Revenue 1,720,000 4.500%, 07/15/17 MBIA Insured ................................ Aaa/AAA 1,781,610
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- WATER AND SEWER (CONTINUED) Pleasant Grove, Utah Water Revenue $ 450,000 4.300%, 12/01/20 MBIA Insured ................................ Aaa/AAA $ 452,151 Riverton, Utah Water Revenue 100,000 5.350%, 09/01/15 FGIC Insured (pre-refunded) ................. Aaa/NR 105,873 Salt Lake City, Utah Metropolitan Water Revenue 1,200,000 5.375%, 07/01/24 AMBAC Insured (pre-refunded) ................ Aaa/AAA 1,250,040 125,000 5.375%, 07/01/29 AMBAC Insured (pre-refunded) ................ Aaa/AAA 130,213 Smithfield, Utah Water Revenue 90,000 4.750%, 06/01/17 ............................................. NR/NR* 90,028 94,000 4.800%, 06/01/18 ............................................. NR/NR* 94,029 99,000 4.850%, 06/01/19 ............................................. NR/NR* 99,031 103,000 4.900%, 06/01/20 ............................................. NR/NR* 103,032 108,000 5.000%, 06/01/21 ............................................. NR/NR* 108,033 114,000 5.050%, 06/01/22 ............................................. NR/NR* 114,035 120,000 5.100%, 06/01/23 ............................................. NR/NR* 120,042 126,000 5.150%, 06/01/24 ............................................. NR/NR* 126,043 132,000 5.200%, 06/01/25 ............................................. NR/NR* 132,045 139,000 5.250%, 06/01/26 ............................................. NR/NR* 139,047 South Valley, Utah Water Reclamation Facility 710,000 4.375%, 08/15/18 ............................................. NR/AAA 725,059 Upper Trinity Regional Water District, Texas 205,000 4.500%, 08/01/20 AMBAC Insured ............................... Aaa/AAA 209,750 Utah Water Finance Agency 100,000 5.000%, 06/01/14 MBIA Insured ................................ Aaa/AAA 101,792 200,000 5.250%, 07/01/16 AMBAC Insured ............................... Aaa/NR 215,278 250,000 5.375%, 09/01/17 AMBAC Insured ............................... Aaa/NR 272,958 310,000 5.000%, 10/01/17 AMBAC Insured ............................... Aaa/NR 329,009 750,000 5.250%, 10/01/18 AMBAC Insured ............................... Aaa/NR 810,398 465,000 5.000%, 10/01/20 AMBAC Insured ............................... Aaa/NR 490,082 830,000 4.500%, 10/01/22 AMBAC Insured ............................... Aaa/NR 847,729 100,000 5.125%, 07/01/23 AMBAC Insured ............................... Aaa/NR 105,699 870,000 4.500%, 10/01/23 AMBAC Insured ............................... Aaa/NR 887,365 450,000 5.400%, 10/01/24 AMBAC Insured (pre-refunded) ................ Aaa/AAA 470,822 250,000 5.500%, 10/01/29 AMBAC Insured (pre-refunded) ................ Aaa/AAA 262,215
RATING FACE MOODY'S/ AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE - ------------ -------------------------------------------------------------- -------- ------------- WATER AND SEWER (CONTINUED) Weber-Box Elder, Utah Conservation District Water Revenue $ 200,000 6.450%, 11/01/14 (pre-refunded) .............................. Baa3/NR $ 219,286 200,000 6.500%, 11/01/19 (pre-refunded) .............................. Baa3/NR 219,640 335,000 6.900%, 11/01/20 (pre-refunded) .............................. Baa3/NR 372,634 ------------- Total Water and Sewer ........................................ 16,445,248 ------------- Total Revenue Bonds .......................................... 165,910,701 ------------- Total Investments (cost $212,765,181 - note 4) ............... 98.9% 217,229,716 Other assets less liabilities ................................ 1.1 2,465,138 ----- ------------- Net Assets ................................................... 100.0% $ 219,694,854 ===== ============= PERCENT OF PORTFOLIO DISTRIBUTION BY QUALITY RATING (UNAUDITED) PORTFOLIO ------------------------------------------------------------------ ---------- Aaa of Moody's or AAA of S&P ..................................... 68.6% Aa of Moody's or AA of S&P ....................................... 11.5 A of Moody's or S&P .............................................. 2.9 Baa of Moody's or BBB of S&P ..................................... 2.8 Not rated* ....................................................... 14.2 ----- 100.0% =====
* Any security not rated (NR) by any of the approved rating services has been determined by the Manager to have sufficient credit quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a rating service. PORTFOLIO ABBREVIATIONS: ACA - American Capital Assurance Financial Guaranty Corp. AMBAC - American Municipal Bond Assurance Corp. AMT - Alternative Minimum Tax CIFG - CDC IXIS Financial Guaranty FGIC - Financial Guaranty Insurance Co. FSA - Financial Security Assurance GNMA - Government National Mortgage Association LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance NR - Not Rated XLCA - XL Capital Assurance See accompanying notes to financial statements. TAX-FREE FUND FOR UTAH STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2006 (UNAUDITED) ASSETS Investments at value (cost $212,765,181) .............................................................. $ 217,229,716 Interest receivable ................................................................................... 3,114,980 Receivable for Fund shares sold ....................................................................... 1,080,157 Other assets .......................................................................................... 13,541 ------------- Total assets .......................................................................................... 221,438,394 ------------- LIABILITIES Cash overdraft ........................................................................................ 162,112 Payable for investment securities purchased ........................................................... 762,075 Payable for Fund shares redeemed ...................................................................... 348,420 Dividends payable ..................................................................................... 270,911 Distribution and service fees payable ................................................................. 102,760 Management fees payable ............................................................................... 37,194 Accrued expenses ...................................................................................... 60,068 ------------- Total liabilities ..................................................................................... 1,743,540 ------------- NET ASSETS ................................................................................................ $ 219,694,854 ============= Net Assets consist of: Capital Stock - Authorized an unlimited number of shares, par value $0.01 per share ................... $ 216,159 Additional paid-in capital ............................................................................ 217,154,062 Net unrealized appreciation on investments (note 4) ................................................... 4,464,535 Accumulated net realized loss on investments .......................................................... (1,782,322) Distributions in excess of net investment income ...................................................... (357,580) ------------- $ 219,694,854 ============= CLASS A Net Assets ............................................................................................ $ 143,644,131 ============= Capital shares outstanding ............................................................................ 14,141,355 ============= Net asset value and redemption price per share ........................................................ $ 10.16 ============= Offering price per share (100/96 of $10.16 adjusted to nearest cent) .................................. $ 10.58 ============= CLASS C Net Assets ............................................................................................ $ 32,277,752 ============= Capital shares outstanding ............................................................................ 3,178,813 ============= Net asset value and offering price per share .......................................................... $ 10.15 ============= 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) ......................................................... $ 10.15* ============= CLASS Y Net Assets ............................................................................................ $ 43,772,971 ============= Capital shares outstanding ............................................................................ 4,295,780 ============= Net asset value, offering and redemption price per share .............................................. $ 10.19 =============
See accompanying notes to financial statements. TAX-FREE FUND FOR UTAH STATEMENT OF OPERATIONS SIX MONTHS ENDED DECEMBER 31, 2006 (UNAUDITED) INVESTMENT INCOME: Interest income .............................................................. $ 5,014,316 EXPENSES: Management fee (note 3) ...................................................... $ 550,408 Distribution and service fees (note 3) ....................................... 310,893 Transfer and shareholder servicing agent fees ................................ 68,951 Trustees' fees and expenses (note 8) ......................................... 58,351 Legal fees (note 3) .......................................................... 40,567 Shareholders' reports and proxy statements ................................... 27,481 Fund accounting fees ......................................................... 24,394 Registration fees and dues ................................................... 18,163 Custodian fees ............................................................... 14,042 Auditing and tax fees ........................................................ 9,330 Insurance .................................................................... 7,538 Chief compliance officer (note 3) ............................................ 2,291 Miscellaneous ................................................................ 27,861 Total expenses ............................................................... 1,160,270 ------------- Management fee waived (note 3) ............................................... (330,246) Expenses paid indirectly (note 6) ............................................ (10,465) ------------- Net expenses ................................................................. 819,559 ------------- Net investment income ........................................................ 4,194,757 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from securities transactions ........................ 608,799 Change in unrealized appreciation on investments ............................. 5,824,372 ------------- Net realized and unrealized gain (loss) on investments ....................... 6,433,171 ------------- Net increase in net assets resulting from operations ............................... $ 10,627,928 =============
See accompanying notes to financial statements. TAX-FREE FUND FOR UTAH STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED DECEMBER 31, 2006 YEAR ENDED (UNAUDITED) JUNE 30, 2006 ------------- ------------- OPERATIONS: Net investment income .......................................................... $ 4,194,757 $ 7,660,792 Net realized gain (loss) from securities transactions .......................... 608,799 349,428 Change in unrealized appreciation on investments ............................... 5,824,372 (7,697,675) ------------- ------------- Change in net assets from operations ........................................... 10,627,928 312,545 ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS (NOTE 10): Class A Shares: Net investment income .......................................................... (2,958,644) (5,675,675) Class C Shares: Net investment income .......................................................... (553,524) (1,052,465) Class Y Shares: Net investment income .......................................................... (920,568) (1,389,390) ------------- ------------- Change in net assets from distributions ........................................ (4,432,736) (8,117,530) ------------- ------------- CAPITAL SHARE TRANSACTIONS (NOTE 7): Proceeds from shares sold ...................................................... 21,064,532 90,295,939 Reinvested dividends and distributions ......................................... 2,654,760 5,246,203 Cost of shares redeemed ........................................................ (26,028,975) (43,527,443) ------------- ------------- Change in net assets from capital share transactions ......................... (2,309,683) 52,014,699 ------------- ------------- Change in net assets ......................................................... 3,885,509 44,209,714 NET ASSETS: Beginning of period ............................................................ 215,809,345 171,599,631 ------------- ------------- End of period* ................................................................. $ 219,694,854 $ 215,809,345 ============= ============= * Includes distributions in excess of net investment income of: ................ $ (357,580) $ (119,601) ============= =============
See accompanying notes to financial statements. TAX-FREE FUND FOR UTAH NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2006 (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 by the pricing service at the mean of bid and asked quotations. If market quotations or a valuation from the pricing service is not readily available, the security is valued at fair value determined in good faith 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) MULTIPLE CLASS ALLOCATIONS: All income, expenses (other than class-specific expenses), and realized and unrealized gains or losses 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. f) NEW ACCOUNTING PRONOUNCEMENTS: In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required to be implemented no later than June 29, 2007 and is to be applied to all open tax years as of that date. At this time, management does not believe the adoption of FIN 48 will result in any material impact on the Fund's financial statements. In September 2006, FASB issued FASB Statement No. 157, "Fair Value Measurement" ("SFAS 157"), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The Fund believes adoption of SFAS 157 will have no material impact on the Fund's financial statements. 3. FEES AND RELATED PARTY TRANSACTIONS a) MANAGEMENT ARRANGEMENTS: Aquila Investment Management LLC (the "Manager"), a wholly-owned subsidiary of Aquila Management Corporation, the Fund's founder and sponsor, serves as the Manager for the Fund under an Advisory and Administration Agreement with the Fund. Under the Advisory and Administration Agreement, 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 managing relationships with 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, 2006, the Fund incurred management fees of $550,408 of which $330,246 was waived. The Manager has contractually undertaken to waive fees and/or reimburse Fund expenses during the period July 1, 2006 through June 30, 2007 so that total Fund expenses would not exceed 0.85% for Class A Shares, 1.65% for Class C Shares or 0.65% for Class Y Shares. Under a Compliance Agreement with the Manager, the Manager is compensated for Chief Compliance Officer related services provided to enable the Fund to comply with Rule 38a-1 of the Investment Company Act of 1940. 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, as amended. 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, 2006, distribution fees on Class A Shares amounted to $144,031, of which the Distributor retained $2,545. 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, 2006, amounted to $125,147. 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, 2006 amounted to $41,715. The total of these payments with respect to Class C Shares amounted to $166,862, of which the Distributor retained $32,227. 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, 2006, total commissions on sales of Class A Shares amounted to $197,792, of which the Distributor received $16,572. c) OTHER RELATED PARTY TRANSACTIONS: For the six months ended December 31, 2006, the Fund incurred $39,829 of legal fees allocable to Hollyer Brady Barrett & 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 at that firm. 4. PURCHASES AND SALES OF SECURITIES During the six months ended December 31, 2006, purchases of securities and proceeds from the sales of securities aggregated $25,742,481 and $26,069,278, respectively. At December 31, 2006, the aggregate tax cost for all securities was $212,734,657. At December 31, 2006, the aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost amounted to $4,550,009 and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value amounted to $54,950, for a net unrealized depreciation of $4,495,059. 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 meeting comparable quality standards of issuers in certain states that do not tax the interest on obligations of Utah issuers and that provide income which is exempt from both regular Federal and Utah income taxes. At December 31, 2006, the Fund had 67% 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. 7. CAPITAL SHARE TRANSACTIONS Transactions in Capital Shares of the Fund were as follows:
SIX MONTHS ENDED DECEMBER 31, 2006 YEAR ENDED (UNAUDITED) JUNE 30, 2006 ---------------------------------- ---------------------------------- SHARES AMOUNT SHARES AMOUNT ------------ ------------ ------------ ------------ CLASS A SHARES: Proceeds from shares sold ................ 1,003,328 $ 10,136,925 3,497,622 $ 35,254,242 Reinvested distributions ................. 189,013 1,910,612 369,013 3,717,136 Cost of shares redeemed .................. (1,456,716) (14,698,708) (1,747,696) (17,557,375) ------------ ------------ ------------ ------------ Net change ............................. (264,375) (2,651,171) 2,118,939 21,414,003 ------------ ------------ ------------ ------------ CLASS C SHARES: Proceeds from shares sold ................ 308,893 3,121,285 1,195,649 12,049,190 Reinvested distributions ................. 32,786 331,233 63,534 639,693 Cost of shares redeemed .................. (586,608) (5,925,617) (524,023) (5,274,452) ------------ ------------ ------------ ------------ Net change ............................. (244,929) (2,473,099) 735,160 7,414,431 ------------ ------------ ------------ ------------ CLASS Y SHARES: Proceeds from shares sold ................ 770,068 7,806,322 4,237,512 42,992,507 Reinvested distributions ................. 40,651 412,915 88,225 889,374 Cost of shares redeemed .................. (532,334) (5,404,650) (2,049,983) (20,695,616) ------------ ------------ ------------ ------------ Net change ............................. 278,385 2,814,587 2,275,754 23,186,265 ------------ ------------ ------------ ------------ Total transactions in Fund shares ................................... (230,919) $ (2,309,683) 5,129,853 $ 52,014,699 ============ ============ ============ ============
8. TRUSTEES' FEES AND EXPENSES At December 31, 2006 there were 7 Trustees, one of which is affiliated with the Manager and is not paid any fees. The total amount of Trustees' service and attendance fees paid during the six months ended December 31, 2006 was $35,792, to cover carrying out their responsibilities and attendance at regularly scheduled quarterly Board Meetings and meetings of the Independent Trustees held prior to each quarterly Board Meeting. When additional or special meetings are held, the meeting fees are paid to those Trustees in attendance. Trustees are reimbursed for their expenses such as travel, accommodations, and meals incurred in connection with attendance at Board Meetings and the Annual Meeting of Shareholders. For the six months ended December 31, 2006, such meeting-related expenses amounted to $22,559. 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. INCOME TAX INFORMATION AND 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 $454,307 and debited additional paid-in capital in the amount of $454,307 at June 30, 2006. This adjustment had no impact on the Fund's aggregate net assets at June 30, 2006. Further, a small portion of the dividends may, under some circumstances, be subject to taxes at ordinary income rates. For certain shareholders some dividend income may, under some circumstances, be subject to the alternative minimum tax. At June 30, 2006, the Fund had a capital loss carryover of $2,391,120 of which $2,121,836 expires on June 30, 2009, $15,469 expires on June 30, 2011, and $253,815 expires on June 30, 2012. 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: Year Ended June 30, 2006 2005 ---------- ---------- Net tax-exempt income $7,658,064 $5,604,701 Ordinary income 459,466 385,843 ---------- ---------- $8,117,530 $5,990,544 ========== ========== As of June 30, 2006, the components of distributable earnings on a tax basis were as follows: Accumulated net realized loss $(2,391,121) Unrealized depreciation (1,317,569) ----------- $(3,708,690) =========== At June 30, 2006, the difference between book basis and tax basis unrealized appreciation was attributable primarily to the treatment of accretion of discounts and amortization of premiums. TAX-FREE FUND FOR UTAH FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
CLASS A -------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED JUNE 30, 12/31/06 -------------------------------------------------------------- (UNAUDITED) 2006 2005 2004 2003 2002 ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period ......... $ 9.87 $ 10.26 $ 9.91 $ 10.31 $ 9.85 $ 9.65 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income ...................... 0.20 0.40+ 0.41+ 0.43++ 0.44+ 0.46+ Net gain (loss) on securities (both realized and unrealized) .......................... 0.30 (0.37) 0.38 (0.37) 0.48 0.22 -------- -------- -------- -------- -------- -------- Total from investment operations ........... 0.50 0.03 0.79 0.06 0.92 0.68 -------- -------- -------- -------- -------- -------- Le distributions (note 10): Dividends from net investment income ....... (0.21) (0.42) (0.44) (0.46) (0.46) (0.48) Distributions from capital gains ........... -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- Total distributions ........................ (0.21) (0.42) (0.44) (0.46) (0.46) (0.48) -------- -------- -------- -------- -------- -------- Net asset value, end of period ............... $ 10.16 $ 9.87 $ 10.26 $ 9.91 $ 10.31 $ 9.85 ======== ======== ======== ======== ======== ======== Total return (not reflecting sales charge) ... 5.08%* 0.28% 8.06% 0.54% 9.55% 7.22% Ratios/supplemental data Net assets, end of period (in thousands) ... $143,644 $142,227 $126,091 $ 94,103 $ 85,329 $ 55,957 Ratio of expenses to average net assets .... 0.67%** 0.64% 0.59% 0.48% 0.43% 0.46% Ratio of net investment income to average net assets ............................... 3.88%** 3.90% 3.98% 4.19% 4.31% 4.65% Portfolio turnover rate .................... 11.96%* 9.61% 8.68% 15.98% 6.43% 27.42% The expense and net investment income ratios without the effect of the waiver of a portion of the management fee and the expense reimbursement were (note 3): Ratio of expenses to average net assets .... 0.96%** 0.93% 0.97% 0.94% 1.02% 1.00% Ratio of net investment income to average net assets ............................... 3.59%** 3.61% 3.60% 3.73% 3.72% 4.11% The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were (note 3): Ratio of expenses to average net assets .... 0.66%** 0.61% 0.56% 0.47% 0.42% 0.40%
- ---------------- + Per share amounts have been calculated using the monthly average shares method. ++ Per share amount calculated using the daily 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, 12/31/06 ----------------------------------------------------------------- (UNAUDITED) 2006 2005 2004 2003 2002 ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period ..... $ 9.87 $ 10.26 $ 9.91 $ 10.30 $ 9.85 $ 9.64 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income .................. 0.16 0.32+ 0.32+ 0.34++ 0.34+ 0.37+ Net gain (loss) on securities (both realized and unrealized) ............. 0.29 (0.37) 0.38 (0.36) 0.48 0.23 -------- -------- -------- -------- -------- -------- Total from investment operations ......... 0.45 (0.05) 0.70 (0.02) 0.82 0.60 -------- -------- -------- -------- -------- -------- Less distributions (note 10): Dividends from net investment income ... (0.17) (0.34) (0.35) (0.37) (0.37) (0.39) Distributions from capital gains ....... -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- Total distributions .................... (0.17) (0.34) (0.35) (0.37) (0.37) (0.39) -------- -------- -------- -------- -------- -------- Net asset value, end of period ........... $ 10.15 $ 9.87 $ 10.26 $ 9.91 $ 10.30 $ 9.85 ======== ======== ======== ======== ======== ======== Total return (not reflecting sales charge) 4.56%* (0.52)% 7.20% (0.16)% 8.48% 6.36% Ratios/supplemental data Net assets, end of period (in thousands) $ 32,278 $ 33,791 $ 27,581 $ 21,961 $ 16,420 Ratio of expenses to average net assets 1.47%** 1.44% 1.39% 1.27% 1.31% 1.34% Ratio of net investment income to average net assets ................... 3.09%** 3.10% 3.18% 3.38% 3.39% 3.72% Portfolio turnover rate ................ 11.96%* 9.61% 8.68% 15.98% 6.43% 27.42% The expense and net investment income ratios without the effect of the waiver of a portion of the management fee and the expense reimbursement were (note 3): Ratio of expenses to average net assets 1.76%** 1.72% 1.77% 1.74% 1.81% 1.78% Ratio of net investment income to average net assets ................... 2.80%** 2.81% 2.80% 2.93% 2.89% 3.28% The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were (note 3): Ratio of expenses to average net assets 1.46%** 1.41% 1.36% 1.27% 1.30% 1.28% CLASS C ---------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED JUNE 30, 12/31/06 ----------------------------------------------------------------- (UNAUDITED) 2006 2005 2004 2003 2002 ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period ..... $ 9.90 $ 10.29 $ 9.94 $ 10.34 $ 9.89 $ 9.68 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income .................. 0.21 0.42+ 0.42+ 0.44++ 0.42+ 0.50+ Net gain (loss) on securities (both realized and unrealized) ............. 0.30 (0.37) 0.39 (0.36) 0.50 0.20 -------- -------- -------- -------- -------- -------- Total from investment operations ......... 0.51 0.05 0.81 0.08 0.92 0.70 -------- -------- -------- -------- -------- -------- Less distributions (note 10): Dividends from net investment income ... (0.22) (0.44) (0.46) (0.48) (0.47) (0.49) Distributions from capital gains ....... -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- Total distributions .................... (0.22) (0.44) (0.46) (0.48) (0.47) (0.49) -------- -------- -------- -------- -------- -------- Net asset value, end of period ........... $ 10.19 $ 9.90 $ 10.29 $ 9.94 $ 10.34 $ 9.89 ======== ======== ======== ======== ======== ======== Total return (not reflecting sales charge) 5.18%* 0.49% 8.27% 0.76% 9.55% 7.41% Ratios/supplemental data Net assets, end of period (in thousands) $ 43,773 $ 39,791 $ 17,928 $ 8,233 $ 883 $ 30 Ratio of expenses to average net assets 0.47%** 0.44% 0.39% 0.28% 0.30% 0.36% Ratio of net investment income to average net assets ................... 4.08%** 4.10% 4.15% 4.41% 4.17% 4.75% Portfolio turnover rate ................ 11.96%* 9.61% 8.68% 15.98% 6.43% 27.42% The expense and net investment income ratios without the effect of the waiver of a portion of the management fee and the expense reimbursement were (note 3): Ratio of expenses to average net assets 0.76%** 0.72% 0.77% 0.74% 0.78% 0.80% Ratio of net investment income to average net assets ................... 3.79%** 3.82% 3.78% 3.95% 3.70% 4.31% The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were (note 3): Ratio of expenses to average net assets 0.46%** 0.41% 0.37% 0.27% 0.29% 0.30%
- ---------- + Per share amounts have been calculated using the monthly average shares method. ++ Per share amount calculated using the daily average shares method. * Not annualized. ** Annualized. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- ANALYSIS OF EXPENSES (UNAUDITED) As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including front-end sales charges with respect to Class A shares or contingent deferred sales charges ("CDSC") with respect to Class C shares; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. The table below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The table below is based on an investment of $1,000 invested on July 1, 2006 and held for the six months ended December 31, 2006. ACTUAL EXPENSES This table provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During the Period". SIX MONTHS ENDED DECEMBER 31, 2006 ACTUAL TOTAL RETURN BEGINNING ENDING EXPENSES WITHOUT ACCOUNT ACCOUNT PAID DURING SALES CHARGES(1) VALUE VALUE THE PERIOD(2) - -------------------------------------------------------------------------------- Class A 5.08% $1,000.00 $1,050.80 $ 3.41 - -------------------------------------------------------------------------------- Class C 4.56% $1,000.00 $1,045.60 $ 7.53 - -------------------------------------------------------------------------------- Class Y 5.18% $1,000.00 $1,051.80 $ 2.38 - -------------------------------------------------------------------------------- (1) ASSUMES REINVESTMENT OF ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS, IF ANY, AT NET ASSET VALUE AND DOES NOT REFLECT THE DEDUCTION OF THE APPLICABLE SALES CHARGES WITH RESPECT TO CLASS A SHARES OR THE APPLICABLE CONTINGENT DEFERRED SALES CHARGES ("CDSC") WITH RESPECT TO CLASS C SHARES. TOTAL RETURN IS NOT ANNUALIZED, AS IT MAY NOT BE REPRESENTATIVE OF THE TOTAL RETURN FOR THE YEAR. (2) EXPENSES ARE EQUAL TO THE ANNUALIZED EXPENSE RATIO OF 0.66%, 1.46% AND 0.46% FOR THE FUND'S CLASS A, C AND Y SHARES, RESPECTIVELY, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 184/365 (TO REFLECT THE ONE-HALF YEAR PERIOD). - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ANALYSIS OF EXPENSES (UNAUDITED) (CONTINUED) HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Fund and other mutual funds. To do so, compare this 5.00% hypothetical example relating to the Fund with the 5.00% hypothetical examples that appear in the shareholder reports of other mutual funds. Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs with respect to Class A shares. The example does not reflect the deduction of contingent deferred sales charges ("CDSC") with respect to Class C shares. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different mutual funds. In addition, if these transaction costs were included, your costs would have been higher. SIX MONTHS ENDED DECEMBER 31, 2006 HYPOTHETICAL ANNUALIZED BEGINNING ENDING EXPENSES TOTAL ACCOUNT ACCOUNT PAID DURING RETURN VALUE VALUE THE PERIOD(1) - -------------------------------------------------------------------------------- Class A 5.00% $1,000.00 $1,021.88 $ 3.36 - -------------------------------------------------------------------------------- Class C 5.00% $1,000.00 $1,017.85 $ 7.43 - -------------------------------------------------------------------------------- Class Y 5.00% $1,000.00 $1,022.89 $ 2.35 - -------------------------------------------------------------------------------- (1) EXPENSES ARE EQUAL TO THE ANNUALIZED EXPENSE RATIO OF 0.66%, 1.46% AND 0.46% FOR THE FUND'S CLASS A, C AND Y SHARES, RESPECTIVELY, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 184/365 (TO REFLECT THE ONE-HALF YEAR PERIOD). - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SHAREHOLDER MEETING RESULTS (UNAUDITED) The Annual Meeting of Shareholders of Tax-Free Fund For Utah (the "Fund") was held on September 22, 2006. The holders of shares representing 78% 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. DOLLAR AMOUNT OF VOTES: ----------------------- TRUSTEE FOR WITHHELD ------- --- -------- Tucker Hart Adams $165,938,367 $ 1,468,873 Gary C. Cornia $166,388,131 $ 1,019,100 Thomas A. Christopher $166,417,149 $ 990,082 Diana P. Herrmann $166,330,903 $ 1,076,337 Lyle W. Hillyard $165,894,391 $ 1,512,849 John C. Lucking $166,377,117 $ 1,030,113 Anne J. Mills $166,438,259 $ 968,971 2. To act on the selection of Tait, Weller & Baker LLP as the Fund's independent registered public accounting firm. Dollar Amount of Votes: ----------------------- FOR AGAINST ABSTAIN --- ------- ------- $165,164,307 $217,067 $2,025,865 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- INFORMATION AVAILABLE (UNAUDITED) Much of the information that the funds in the Aquila Group of Funds(SM) produce is automatically sent to you and all other shareholders. Specifically, you are routinely sent the entire list of portfolio securities of your Fund twice a year in the semi-annual and annual reports you receive. Additionally, we prepare, and have available, portfolio listings at the end of each quarter. Whenever you may be interested in seeing a listing of your Fund's portfolio other than in your shareholder reports, please check our website http://www.aquilafunds.com or call us at 1-800-437-1020. The Fund additionally files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the SEC website at http://www.sec.gov. You may also review or, for a fee, copy the forms at the SEC's Public Reference Room in Washington, DC or by calling 800-SEC-0330. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PROXY VOTING RECORD (UNAUDITED) The Fund does not invest in equity securities. Accordingly, there were no matters relating to a portfolio security considered at any shareholder meeting held during the 12 months ended June 30, 2006 with respect to which the Fund was entitled to vote. Applicable regulations require us to inform you that the foregoing proxy voting information is available on the SEC website at http://www.sec.gov. - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (UNAUDITED) RENEWAL OF THE ADVISORY AND ADMINISTRATION AGREEMENT Renewal until December 31, 2007 of the Advisory and Administration Agreement (the "Advisory Agreement") between the Fund and the Manager was approved by the Board of Trustees and the independent Trustees in December, 2006. At a meeting called and held for that purpose at which a majority of the independent Trustees were present in person, the following materials were considered: o Copies of the agreements to be renewed; o A term sheet describing the material terms of the agreements; o The Annual Report of the Fund for the year ended June 30, 2006; o A report, prepared by the Manager and provided to the Trustees in advance of the meeting for the Trustees' review, containing data about the performance of the Fund, data about its fees, expenses and purchases and redemptions of capital stock together with comparisons of such data with similar data about other comparable funds, as well as data as to the profitability of the Manager; and o Quarterly materials reviewed at prior meetings on the Fund's performance, operations, portfolio and compliance. The Trustees reviewed materials relevant to, and considered the following factors: THE NATURE, EXTENT, AND QUALITY OF THE SERVICES PROVIDED BY THE MANAGER. The Manager has provided local management of the Fund's portfolio. The Trustees noted that the Manager employed Mr. Thomas S. Albright and Mr. Kimball Young as co-portfolio managers for the Fund and has established facilities for credit analysis of the Fund's portfolio securities. Mr. Young, based in Salt Lake City, has extensive municipal bond underwriting experience and has provided local information regarding specific holdings in the Fund's portfolio. Mr. Albright has over 25 years of investment management experience. The portfolio managers have also been available to and have met with the brokerage and financial planner community and with investors and prospective investors to provide them with information generally about the Fund's portfolio, with which to assess the Fund as an investment vehicle for residents of Utah in light of prevailing interest rates and local economic conditions. The Board considered that the Manager had provided all services the Board deemed necessary or appropriate, including the specific services that the Board has determined are required for the Fund, given that its purpose is to provide shareholders with as high a level of current income exempt from Utah state and regular Federal income taxes as is consistent with preservation of capital. The Manager has additionally provided all administrative services to the Fund. The Board considered the nature and extent of the Manager's supervision of third-party service providers, including the Fund's shareholder servicing agent and custodian. The Board considered that the Manager had established and maintained a strong culture of ethical conduct and regulatory compliance. The Board concluded that the services provided were appropriate and satisfactory and that the Fund would be well served if they continued. Evaluation of this factor weighed in favor of renewal of the Advisory Agreement. THE INVESTMENT PERFORMANCE OF THE FUND AND THE MANAGER. The Board reviewed each aspect of the Fund's performance and compared its performance with that of its competitors, with national averages and the benchmark index. It was noted that the materials provided by the Manager indicated that the Fund had investment performance that exceeded or was comparable to that of its peers for one-, five- and ten-year periods. The Board considered these results to be consistent with the purposes of the Fund. The Board concluded that the performance of the Fund, in light of market conditions, was satisfactory. Evaluation of this factor indicated to the Trustees that renewal of the Advisory Agreement would be appropriate. THE COSTS OF THE SERVICES TO BE PROVIDED AND PROFITS TO BE REALIZED BY THE MANAGER AND ITS AFFILIATES AND FROM THE RELATIONSHIP WITH THE FUND. The information provided in connection with renewal contained expense data for the Fund and its competitors as well as data for all single-state tax-free municipal bond funds nationwide, including data for all such front-end load funds of a comparable asset size. The materials also showed the profitability to the Manager of its services to the Fund. The Board noted that the Manager was currently waiving a portion of its fees and had been since the Fund's inception. Additionally, it was noted that the Manager had contractually undertaken to waive fees and/or reimburse Fund expenses during the period July 1, 2006 through June 30, 2007 so that total Fund expenses would not exceed the following percentages of the Fund's average net assets for that period: 0.85 of 1% for Class A Shares, 1.65 of 1% for Class C Shares and 0.65 of 1% for Class Y Shares. The Manager had indicated that it intended to continue waiving fees as necessary in order that the Fund would remain competitive. The Board compared the expense and fee data with respect to the Fund to similar data about other funds that it found to be relevant. The Board concluded that the expenses of the Fund and the fees paid were similar to and were reasonable as compared to those being paid by single-state tax-free municipal bond funds nationwide, and by the Fund's competitors. The Board further concluded that the profitability to the Manager and the Distributor did not argue against approval of the fees to be paid under the Advisory Agreement. THE EXTENT TO WHICH ECONOMIES OF SCALE WOULD BE REALIZED AS THE FUND GROWS. Data provided to the Trustees showed that the Fund's asset size had been increasing in recent years. The Trustees also noted that the materials indicated that the Fund's fees were already lower than those of its peers, including those with breakpoints. Additionally, the Trustees noted that the Manager was currently waiving a substantial portion of its fees. Evaluation of these factors indicated to the Board that the Advisory Agreement should be renewed without addition of breakpoints at this time. BENEFITS DERIVED OR TO BE DERIVED BY THE MANAGER AND ITS AFFILIATES FROM THE RELATIONSHIPS WITH THE FUND. The Board observed that, as is generally true of most fund complexes, the Manager and its affiliates, by providing services to a number of funds including the Fund, were able to spread costs as they would otherwise be unable to do. The Board noted that while that produces efficiencies and increased profitability for the Manager and its affiliates, it also makes their services available to the Fund at favorable levels of quality and cost which are more advantageous to the Fund than would otherwise have been possible. (THIS PAGE INTENTIONALLY LEFT BLANK) (THIS PAGE INTENTIONALLY LEFT BLANK) FOUNDERS Lacy B. Herrmann, Chairman Emeritus Aquila Management Corporation MANAGER AQUILA investment MANAGEMENT LLC 380 Madison Avenue, Suite 2300 New York, New York 10017 BOARD OF TRUSTEES Gary C. Cornia, Chair Tucker Hart Adams Thomas A. Christopher Diana P. Herrmann Lyle W. Hillyard John C. Lucking Anne J. Mills OFFICERS Diana P. Herrmann, President Jerry G. McGrew, Senior Vice President Kimball L. Young, Senior Vice President and Co-Portfolio Manager Thomas S. Albright, Senior Vice President and Co-Portfolio Manager M. Kayleen Willis, Vice President Robert W. Anderson, Chief Compliance Officer Joseph P. DiMaggio, Chief Financial Officer and Treasurer Edward M.W. Hines, Secretary DISTRIBUTOR AQUILA DISTRIBUTORS, INC. 380 Madison Avenue, Suite 2300 New York, New York 10017 TRANSFER AND SHAREHOLDER SERVICING AGENT PFPC INC. 101 Sabin Street Pawtucket, RI 02860 CUSTODIAN JPMorgan Chase Bank, N.A. 1111 Polaris Parkway Columbus, Ohio 43240 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Tait, Weller & Baker LLP 1818 Market Street, Suite 2400 Philadelphia, PA 19103 Further information is contained in the Prospectus, which must precede or accompany this report. 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. SCHEDULE OF INVESTMENTS. Included in Item 1 above ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The Board of Directors of the Registrant has adopted a Nominating Committee Charter which provides that the Nominating Committee (the 'Committee') may consider and evaluate nominee candidates properly submitted by shareholders if a vacancy among the Independent Trustees of the Registrant occurs and if, based on the Board's then current size, composition and structure, the Committee determines that the vacancy should be filled. The Committee will consider candidates submitted by shareholders on the same basis as it considers and evaluates candidates recommended by other sources. A copy of the qualifications and procedures that must be met or followed by shareholders to properly submit a nominee candidate to the Committee may be obtained by submitting a request in writing to the Secretary of the Registrant. ITEM 11. 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 filing 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 12. EXHIBITS. (a)(2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. (b) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TAX-FREE FUND FOR UTAH By: /s/ Diana P. Herrmann - - - --------------------------------- President and Trustee March 9, 2007 By: /s/ Joseph P. DiMaggio - - - ----------------------------------- Chief Financial Officer and Treasurer March 9, 2007 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 March 9, 2007 By: /s/ Joseph P. DiMaggio - - - ----------------------------------- Joseph P. DiMaggio Chief Financial Officer and Treasurer March 9, 2007 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 tffu306cert.txt SECTION 306 CERTIFICATION CERTIFICATIONS 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; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report ("Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: March 9, 2007 /s/ Diana P. Herrmann - - - ---------------------- Title: President and Trustee 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; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report ("Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: March 9, 2007 /s/ Joseph P. DiMaggio - - - ------------------------ Title: Chief Financial Officer and Treasurer EX-99.906 CERT 3 tffu906cert.txt SECTION 906 CERTIFICATION CERTIFICATION Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) 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, 2006, (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 9, 2007 /s/ Diana P. Herrmann ------------------------- President and Trustee Tax-Free Fund For Utah Dated: March 9, 2007 ` /s/ Joseph P. DiMaggio ------------------------- Chief Financial Officer and Treasurer 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-----