-----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, JT20jC5UBs+wj9TFp99BMfqYwNVh4/I5zZ+uMNM4eD60Wnn04wZIkImiHu8EJpnr TURTHep3N2TFFUw6ynH7gw== 0000872032-10-000016.txt : 20100907 0000872032-10-000016.hdr.sgml : 20100906 20100907164743 ACCESSION NUMBER: 0000872032-10-000016 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 12 CONFORMED PERIOD OF REPORT: 20100630 FILED AS OF DATE: 20100907 DATE AS OF CHANGE: 20100907 EFFECTIVENESS DATE: 20100907 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: 101060416 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 e607478_ncsr-utah.htm TAX-FREE FUND FOR UTAH 06/30/2010 FORM NCSR Unassociated Document
 
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: 6/30/10

Date of reporting period: 6/30/10

FORM N-CSR

ITEM 1.  REPORTS TO STOCKHOLDERS.
 
 
 

 
 
 
Annual
Report
June 30, 2010
 
 
TAX-FREE FUND FOR
UTAH
 
A tax-free income investment
 
 
 
 

 
 

 
 
Serving Utah Investors For More Than 15 Years
 
Tax-Free Fund For Utah
 
“Consistency”
 
August, 2010
 
Dear Fellow Shareholder:
 
When we created Tax-Free Fund For Utah 18 years ago, we started with a few simple goals as our building blocks.
 
 
To create a tax-free product specifically designed for Utah residents, like you; while recognizing your need to preserve capital.
 
 
To keep you well informed, while communicating with you in simple, straight-forward language -no jargon - financial or otherwise; and
 
 
To treat you, our fellow shareholders, as we ourselves would like to be treated – like individuals, not just as account numbers.
 
Over the years, we have consistently sought ways to serve you better. As such, we have added various conveniences and features to your Fund in an effort to keep pace with your changing needs and expectations. At the same time, we have always kept our basic goals or building blocks in mind –the core of which is you, our shareholders.
 
We have, therefore, never lost sight of the fact that it is:
 
 
Your money,
 
 
Invested in your Fund,
 
 
Invested right here in projects in your communities.
 
And, we haven’t forgotten the strategy that we first formulated in an effort to make your Fund’s performance as consistent as possible:
 
 
stick with high-quality investments,
 
 
keep an intermediate maturity for the Fund’s portfolio,
 
 
diversify investments around the state, and
 
 
utilize the expertise of local talent – Trustees, Officers, and portfolio management.
 
NOT A PART OF THE ANNUAL REPORT
 
 
 

 
 
So, while change is inevitable, we firmly believe that we should never lose sight of our core building blocks. We believe our disciplined approach toward consistency has served you well over the years. And, we believe consistency will continue to serve us well over the future. After all consistency is what you expect from our management of your Fund.
 
Sincerely,
 
Lacy B. Herrmann
Founder and Chairman Emeritus
Diana P. Herrmann
President
 
 
Consideration should be given to the risks of investing, including: potential loss of value, market risk, interest rate risk, credit risk, and geographic concentration. Past performance does not guarantee future stability. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. For certain investors, some dividends may be subject to Federal and state taxes, including the Alternative Minimum Tax (AMT).
 
NOT A PART OF THE ANNUAL REPORT
 
 
 

 
 
Serving Utah Investors For More Than 15 Years
 
Tax-Free Fund For Utah
 
ANNUAL REPORT
 
Management Discussion
 
     The past 12 months have witnessed a municipal market which we would characterize as somewhat stodgy and almost boring. Following the turbulent swings of 2008 and 2009, steady and stodgy has been welcomed. Nationally, concerns for the past year have been on deficits and the ability of our cities and towns to meet their obligations as revenue flows from income, sales and property taxes steadily declined.
 
     While most articles written about the financial health of municipalities have been negative in nature, many municipalities have been able to make unpopular cuts in their budgets, such as reducing city employees’ benefits and keeping wages at current levels, to offset the decrease in revenues. When the economy picks up, many of these municipalities could expect to see their balance sheets improve. Until balance sheets improve, we feel that “conduit financing” and “annual appropriation financing” pose risks that are not well rewarded.
 
     Tax-Free Fund For Utah’s net asset value (Class A shares) started the fiscal year at $9.35 on June 30, 2009, which was improving from the declines in late 2008. The Fund’s share price reached its high for the latest fiscal year on October 1, 2009 at $10.84. The Fund’s share value, and municipal values in general, have remained in a narrow range for the nine months since. The June 30, 2010 fiscal year ending value of $9.80 meant a respectable return on principal of 9.74%, without sales charges. Dividends paid for the twelve months decreased slightly from $0.451 per share to $0.446. Municipal bond categories as measured by Lipper had the following 12-month returns as of June 30, 2010: General Municipals 10.6%; Single State Municipals 9.7%; Insured Municipals 9.0%; and High Yield Municipals 18.5%.
 
     We view these results with some pride. First, our annual dividends have been close to unchanged at $0.45 per share for the last two years versus $0.42 three years ago. With the increased inflow of money into the Fund, this has become an increasing challenge in our persistent low interest rate environment. (For example, in 2000, a ten-year municipal bond provided income of approximately 5%, while in 2009 a ten-year municipal bond provided income of roughly 3.60%, and as of June 30, 2010 a ten-year municipal bond paid approximately 3.00%.). Obviously, in seeking to maintain a steady income flow we have had to add some degree of market risk primarily through the purchase of bonds with call risk.
 
     We continue to have a very positively sloped yield curve in both the Treasury market and the municipal market with long-term rates substantially higher than short-term rates. The slope of the Treasury yield curve historically has been a leading indicator of economic activity. A sharply positive curve, such as now, says investors are anticipating economic growth leading to higher inflation leading to higher interest rates.
 
 
1

 
 
MANAGEMENT DISCUSSION (continued)
 
     The Fund’s ability to purchase bonds in the long end of the curve has been somewhat diminished with the reduced issuance of long-term tax-exempt bonds as a result of Build America Bonds (BABs), taxable bonds introduced by the U.S. Government in 2009 for which municipalities receive a refund of 35% of the interest cost (thereby making taxable bonds more favorable to issue than tax-exempt). The Fund has still, however, been able to take advantage of the steep yield curve by taking on call risk. A steep yield curve makes the ability of an issuer to use lower interest rates to refinance existing debt more difficult. This defensive posture has enabled the Fund to strive to keep returns high without reducing the credit quality of the Fund.
 
     We believe several factors will keep interest rates on the low end of the spectrum. First, the unprecedented level of short-term rates with money market rates near zero does not give a historically accurate comparison. Second, severity of the economic downturn and the lingering results on unemployment and housing will likely curtail economic growth. Finally, the much anticipated pick-up in inflation has not developed. Indeed, year-over-year core inflation in the U.S. has dropped to 0.9%, the lowest level in forty years.
 
     As such, we see the coming months mirroring the past 12 months. We expect the economy to continue to grow at a slow pace. Inflation pressures will be subdued. Interest rates from the current low base will edge upward. Utah and its cities are expected to continue to adjust to a slower economy, producing less tax revenue for infrastructure development and municipal services. Thus, our primary job will be to continue to monitor the paying ability of our municipalities.
 
     As always, our ongoing goal is to strive to produce a maximum level of income exempt from Federal and state taxes while minimizing the price swings of our net asset value.
 
     Lastly, it is worthy to note that in April, both Fitch and Moody’s (nationally-recognized rating agencies) recalibrated their credit ratings of municipalities which should help investors compare corporate bonds against municipal bonds. With the new rating system, municipals are now rated against the risk of default, rather than against their peers, which has resulted in rating upgrades for many municipalities.
 
 
Performance data represents past performance, but does not guarantee future results. Investment return and principal value will fluctuate; shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the data presented.
 
NOT FDIC INSURED – NO BANK GUARANTEE – MAY LOSE VALUE
 
 
2

 
 
PERFORMANCE REPORT
 
     The following graph illustrates the value of $10,000 invested in the Class A shares of Tax-Free Fund For Utah for the 10-year period ended June 30, 2010 as compared with the Barclays Capital Quality Intermediate Municipal Bond Index (the “Barclays Capital Index”) (formerly known as the Lehman Brothers Quality Intermediate Municipal Bond Index) and the Consumer Price Index (a cost of living index). The performance of each of the other classes is not shown in the graph but is included in the table below. It should be noted that the Barclays Capital Index does not include any operating expenses nor sales charges, and being nationally oriented, does not reflect state specific bond market performance for the limited number of states in which Tax-Free Fund for Utah may invest.
 
 
   
Average Annual Total Return
 
   
for periods ended June 30, 2010
 
                     
Since
 
Class and Inception Date
 
1 Year
   
5 Years
   
10 Years
   
Inception
 
Class A (commenced operations on 7/24/92)
                       
With Maximum Sales Charge
    5.34 %     2.69 %     4.71 %     4.98 %
Without Sales Charge
    9.74       3.54       5.14       5.22  
Class C (commenced operations on 5/21/96)
                               
With CDSC
    7.83       2.69       4.25       4.04  
Without CDSC
    8.87       2.69       4.25       4.04  
Class Y (commenced operations on 5/21/96)
                               
No Sales Charge
    9.94       3.75       5.34       5.16  
Barclays Capital Index
    6.94       4.69       5.26       5.40
* (Class A)
                              5.21
** (Class C&Y)
 
Total return figures shown for the Fund reflect any change in price and assume all distributions within the period were invested in additional shares. Returns for Class A shares are calculated with and without the effect of the initial 4% maximum sales charge. Returns for Class C shares are calculated with and without the effect of the 1% contingent deferred sales charge (CDSC), imposed on redemptions made within the first 12 months after purchase. Class Y shares are sold without any sales charge. The rates of return will vary and the principal value of an investment will fluctuate with market conditions. Shares, if redeemed, may be worth more or less than their original cost. A portion of each class’s income may be subject to Federal and state income taxes and/or the Federal alternative minimum tax. Past performance is not predi ctive of future investment results.
 
*   From commencement of operations on 7/24/92.
** From commencement of operations on 5/21/96.
 
 
3

 
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
To the Board of Trustees and Shareholders of Tax-Free Fund For Utah:
 
     We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Tax-Free Fund For Utah as of June 30, 2010 and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
 
     We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examin ing, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2010, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
     In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Tax-Free Fund For Utah as of June 30, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
 
TAIT, WELLER & BAKER LLP
 
Philadelphia, Pennsylvania
August 27, 2010
 
 
4

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
General Obligation Bonds (13.3%)
 
(unaudited)
 
Value
 
   
City, County and State (8.3%)
         
   
Alamo, Texas Community College District
         
$ 595,000  
4.375%, 02/15/25 NPFG Insured
 
Aaa/AA+
  $ 607,287  
     
Anderson, Indiana San District
           
  505,000  
4.600%, 07/15/23 AMBAC Insured
  A1/A-     517,287  
     
Cedar City, Utah Special Improvement District
           
     
Assessment
           
  235,000  
5.050%, 09/01/10
 
NR/NR*
    234,702  
  215,000  
5.200%, 09/01/11
 
NR/NR*
    213,001  
     
Cedar Park, Texas
           
  835,000  
4.500%, 02/15/22 NPFG Insured
 
Aa3/AA
    856,209  
     
Clark County, Nevada, Refunding
           
  2,000,000  
5.000%, 11/01/28 AGMC Insured
 
Aaa/AAA
    2,058,780  
     
Clark County, Nevada, Refunding, Series B
           
  1,000,000  
5.000%, 07/01/23
 
Aaa/AA+
    1,082,400  
     
Coral Canyon, Utah Special Service District
           
  140,000  
4.850%, 07/15/17
 
NR/NR*
    131,719  
  580,000  
5.700%, 07/15/18
 
NR/NR*
    565,796  
     
Dawson County, Texas Hospital District
           
  555,000  
4.375%, 02/15/24 AMBAC Insured
 
NR/BBB+
    508,713  
     
Denton County, Texas
           
  700,000  
4.500%, 07/15/24 NPFG Insured
 
Aaa/AAA
    720,923  
  400,000  
4.500%, 07/15/25 NPFG Insured
 
Aaa/AAA
    409,752  
  1,500,000  
4.250%, 07/15/27 NPFG Insured
 
Aaa/AAA
    1,511,085  
     
Harris County, Texas Utility District #268
           
  905,000  
4.375%, 09/01/27 Radian Insured
 
NR/NR*
    801,097  
     
Houston, Texas Public Improvement
           
  1,500,000  
5.000%, 03/01/29
 
Aa2/AA
    1,597,425  
     
King County, Washington Unlimited Tax
           
  1,000,000  
4.500%, 12/01/25 AGMC Insured
 
Aa1/AAA
    1,044,110  
     
Laredo, Texas
           
  300,000  
4.250%, 08/15/21 AMBAC Insured
 
Aa2/AA-
    310,431  
  500,000  
4.500%, 02/15/24 NPFG Insured
 
Aa2/AA-
    514,865  
     
Las Vegas Valley, Nevada Water District Refunding
           
     
& Water Improvement
           
  1,500,000  
5.000%, 06/01/27 Series A NPFG-FGIC Insured
 
Aa1/AA+
    1,550,670  
 
 
5

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
General Obligation Bonds (continued)
 
(unaudited)
 
Value
 
   
City, County and State (continued)
         
   
McKinney, Texas
         
$ 1,700,000  
4.500%, 08/15/23 Syncora Guarantee, Inc. Insured
 
Aa1/AA+
  $ 1,769,139  
  1,375,000  
5.000%, 08/15/24 AMBAC Insured
 
Aa1/AA+
    1,479,885  
  695,000  
4.375%, 08/15/25 NPFG Insured
 
Aa1/AA+
    717,726  
     
Mesquite, Texas
           
  510,000  
4.625%, 02/15/22 AGMC Insured
 
Aa2/AAA
    536,647  
     
Montgomery County, Texas
           
  2,975,000  
5.250%, 03/01/32
 
Aa2/AA
    3,226,447  
     
Ocean Shores, Washington Refunding
           
  1,030,000  
5.500%, 12/01/21 NPFG-FGIC Insured
 
NR/A
    1,068,913  
     
San Antonio, Texas
           
  125,000  
4.750%, 02/01/24 AGMC Insured
 
Aaa/AAA
    130,243  
     
San Patricio County, Texas
           
  450,000  
4.600%, 04/01/25 AMBAC Insured
 
Aa3/NR
    466,965  
     
Texas State
           
  415,000  
4.500%, 08/01/22
 
Aaa/AA+
    446,436  
     
Waco, Texas
           
  2,560,000  
4.500%, 02/01/24 NPFG Insured
 
Aa2/AA
    2,610,330  
     
Washington County, Utah
           
  1,250,000  
5.000%, 10/01/22 NPFG Insured**
 
A1/NR
    1,293,737  
     
Washoe County, Nevada Refunding Reno/Sparks
           
     
Convention
           
  2,000,000  
5.000%, 07/01/23 NPFG-FGIC Insured
 
Aa1/AA
    2,044,060  
     
Williamson County, Texas
           
  460,000  
4.500%, 02/15/26 AGMC Insured
 
Aa1/AAA
    474,702  
     
Total City, County and State
        31,501,482  
   
     
Local Public Property (0.5%)
           
     
Washoe County, Nevada Refunding Reno/Sparks
           
     
Convention
           
  2,000,000  
5.250%, 07/01/29 NPFG-FGIC Insured
 
Aa1/AA
    2,036,740  
   
     
School District (4.5%)
           
     
Borger, Texas Independent School District
           
  400,000  
4.500%, 02/15/24
 
NR/AAA
    418,120  
  500,000  
4.500%, 02/15/25
 
NR/AAA
    518,790  
 
 
6

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
General Obligation Bonds (continued)
 
(unaudited)
 
Value
 
   
School District (continued)
         
   
Clint, Texas Independent School District
         
$ 265,000  
4.250%, 02/15/28
 
NR/AAA†
  $ 267,759  
     
Conroe, Texas Independent School District, School
           
     
Building
           
  750,000  
5.750%, 02/15/35 Series A
 
Aa2/AA
    824,490  
     
Freemont County, Wyoming School District #14
           
  355,000  
4.500%, 06/15/26
 
NR/BBB††††
    367,908  
     
Frisco, Texas Independent School District
           
  1,260,000  
5.000%, 07/15/26 PSF Guaranty
 
Aaa/NR†
    1,321,198  
     
Galena Park, Texas Independent School District
           
  295,000  
4.625%, 08/15/25 PSF Guaranty
 
Aaa/NR†
    310,611  
     
Harrisburg, South Dakota Independent School
           
     
District No. 41-2
           
  1,370,000  
4.500%, 01/15/24 AGMC Insured
 
Aa3/NR
    1,384,289  
     
La Feria, Texas Independent School District
           
  210,000  
4.400%, 02/15/24 PSF Guaranty
 
Aaa/NR
    216,617  
     
Lindale, Texas Independent School District
           
  440,000  
4.250%, 02/15/21 PSF Guaranty
 
NR/AAA
    458,106  
  1,000,000  
4.250%, 02/15/22 PSF Guaranty
 
NR/AAA
    1,035,510  
  445,000  
4.375%, 02/15/23 PSF Guaranty
 
NR/AAA
    461,808  
     
Lovejoy, Texas Independent School District
           
  200,000  
4.500%, 02/15/24 PSF Guaranty
 
Aaa/AAA
    206,810  
     
Navasota, Texas Independent School District
           
  475,000  
5.000%, 08/15/23 NPFG FGIC Insured
 
A3/NR
    496,104  
     
Port Arthur, Texas Independent School District School
           
     
Building
           
  2,000,000  
5.250%, 02/15/30 NPFG-FGIC Insured
 
Aa3/NR
    2,045,340  
     
Prosper, Texas Independent School District
           
  395,000  
4.125%, 08/15/21 PSF Guaranty
 
NR/AAA†
    410,761  
     
Spring, Texas Independent School District
           
  300,000  
4.750%, 08/15/23
 
Aaa/AAA
    310,227  
     
Uintah County, Utah School District
           
  455,000  
4.250%, 02/01/24
 
Aaa/NR
    472,495  
     
Van, Texas Independent School District
           
  750,000  
4.875%, 02/15/26
 
Aaa/AAA
    799,402  
 
 
7

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
General Obligation Bonds (continued)
 
(unaudited)
 
Value
 
   
School District (continued)
         
   
Wasatch County, Utah School District
         
$ 880,000  
5.000%, 06/01/25
 
Aaa/NR
  $ 949,819  
     
Washington County, Utah
           
  440,000  
5.000%, 10/01/18 Syncora Guarantee, Inc. Insured**
 
Aa2/NR
    470,760  
  465,000  
5.000%, 10/01/19 Syncora Guarantee, Inc. Insured
 
Aa2/NR
    493,909  
  490,000  
5.000%, 10/01/20 Syncora Guarantee, Inc. Insured
 
Aa2/NR
    519,273  
  510,000  
5.000%, 10/01/21 Syncora Guarantee, Inc. Insured
 
Aa2/NR
    540,263  
  535,000  
5.000%, 10/01/22 Syncora Guarantee, Inc. Insured
 
Aa2/NR
    562,868  
  565,000  
5.000%, 10/01/23 Syncora Guarantee, Inc. Insured
 
Aa2/NR
    590,815  
  320,000  
5.000%, 10/01/24 Syncora Guarantee, Inc. Insured
 
Aa2/NR
    333,731  
     
Washoe County, Nevada School District
           
  200,000  
4.625%, 06/01/23 NPFG FGIC Insured
 
Aa2/AA
    204,930  
     
Total School District
        16,992,713  
     
Total General Obligation Bonds
        50,530,935  
   
     
Revenue Bonds (84.2%)
           
   
     
Airport (2.9%)
           
     
Broward County, Florida Airport System Revenue
           
     
Refunding
           
  1,000,000  
5.375%, 10/01/29 Series O
  A1/A+     1,045,450  
     
Clark County, Nevada Passenger Facility Charge
           
  255,000  
4.750%, 07/01/22 NPFG Insured AMT
 
Aa3/A+
    255,099  
     
Clark County, Nevada Passenger Facilities Charge
           
     
Revenue Las Vegas-McCarran International Airport
           
  1,500,000  
5.000%, 07/01/30
 
Aa3/A+
    1,509,000  
     
Greater Orlando Aviation Authority, Florida Airport
           
  2,000,000  
5.500%, 10/01/23 AMT
 
Aa3/A+
    2,083,600  
     
Hillsborough County, Florida Aviation Authority
           
  2,185,000  
5.250%, 10/01/23 NPFG Insured AMT**
 
Aa3/A+
    2,228,416  
     
Indianapolis, Indiana Airport Authority Revenue
           
     
Refunding, Series A
           
  1,000,000  
5.000%, 01/01/37
  A1/A     1,002,990  
     
Miami-Dade County, Florida Aviation Revenue
           
     
Miami International Airport, Series A-1
           
  1,700,000  
5.000%, 10/01/22
  A2/A-     1,764,753  
 
 
8

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Airport (continued)
         
   
Reno-Tahoe, Nevada Airport Authority Revenue
         
   
Refunding
         
$ 1,000,000  
5.000%, 07/01/26 AGMC Insured
 
Aa3/NR†††
  $ 994,550  
     
Total Airport
        10,883,858  
   
     
Education (25.0%)
           
     
Carmel, Indiana 2002 School Building Corp.
           
  1,235,000  
4.300%, 01/15/23 AGMC Insured
 
Aa3/AAA
    1,260,157  
     
Central Washington State University System Revenue
           
  1,265,000  
4.375%, 05/01/26 AGMC Insured
 
Aa3/NR
    1,294,816  
     
Florida State Board of Education Public Education
           
  210,000  
4.500%, 06/01/25 AGMC Insured
 
Aa1/AAA
    219,975  
     
Hillsborough County, Florida School Board COP
           
  560,000  
4.250%, 07/01/26 NPFG Insured
 
Aa2/AA-
    549,164  
     
Laredo, Texas Independent School District Public
           
     
Facility Corp.
           
  190,000  
5.000%, 08/01/24 AMBAC Insured
 
NR/A†††
    192,542  
     
La Vernia, Texas Higher Education Finance Corp.
           
  3,551,900  
6.500%, 03/15/38
 
NR/NR*
    3,169,573  
     
Nevada System Higher Education COP
           
  1,000,000  
5.000%, 07/01/25 AMBAC Insured
 
NR/AA-††
    1,057,900  
     
Salt Lake County, Utah Westminster College Project
           
  825,000  
4.750%, 10/01/20
 
NR/BBB
    817,690  
  870,000  
4.750%, 10/01/21
 
NR/BBB
    863,953  
  2,300,000  
5.000%, 10/01/22
 
NR/BBB
    2,307,176  
  1,250,000  
5.000%, 10/01/25
 
NR/BBB
    1,225,100  
  2,025,000  
5.125%, 10/01/28
 
NR/BBB
    1,920,227  
     
San Angelo, Texas Independent School District
           
  1,000,000  
5.250%, 02/15/34 AGMC Insured
 
NR/AAA††
    1,054,450  
     
Spanish Fork City, Utah Charter School Revenue
           
     
American Leadership Academy
           
  1,800,000  
5.550%, 11/15/21
 
NR/NR*
    1,654,488  
  945,000  
5.550%, 11/15/26
 
NR/NR*
    824,324  
     
Texas A&M University Revenue
           
  1,750,000  
5.000%, 07/01/34
 
Aaa/AAA
    1,922,970  
     
Texas State College Student Loan Revenue
           
  100,000  
5.000%, 08/01/22 AMT
 
Aaa/AA+
    100,294  
 
 
9

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Education (continued)
         
   
Texas State University System Financing Revenue
         
$ 655,000  
4.375%, 03/15/23 AGMC Insured
 
Aa2/AAA
  $ 674,709  
  2,000,000  
5.250%, 03/15/25
 
Aa2/AAA
    2,197,340  
     
Tyler, Texas Independent School District
           
  325,000  
5.000%, 02/15/26 AGMC Insured
 
Aa3/AAA
    339,099  
     
University of Nevada (University Revenues)
           
  115,000  
4.500%, 07/01/24 ETM NPFG Insured
 
Aa3/A
    122,818  
  75,000  
4.500%, 07/01/24 NPFG Insured
 
Aa3/AA-
    76,757  
     
University of Utah COP
           
  3,170,000  
4.350%, 12/01/26 AMBAC Insured
 
Aa2/AA-
    3,267,034  
     
Utah County, Utah Charter School Revenue
           
     
Lakeview Academy
           
  315,000  
5.350%, 07/15/17 Series A
 
NR/NR*
    293,813  
     
Utah County, Utah Charter School Revenue
           
     
Lincoln Academy
           
  900,000  
5.450%, 06/15/17 Series A
 
NR/NR*
    844,965  
     
Utah County, Utah Charter School Revenue
           
     
Renaissance Academy
           
  340,000  
5.350%, 07/15/17 Series A
 
NR/NR*
    323,734  
     
Utah County, Utah School Facility
           
  1,275,000  
6.500%, 12/01/25
 
NR/NR*
    1,125,468  
     
Utah State Board of Regents Auxiliary &
           
     
Campus Facility
           
  1,000,000  
4.125%, 04/01/20 NPFG Insured
 
Aa2/AA
    1,030,100  
     
Utah State Board of Regents Lease Revenue
           
  410,000   4.500%, 05/01/20 AMBAC Insured  
NR/AA
    436,285  
  425,000   4.500%, 05/01/21 AMBAC Insured  
NR/AA
    449,246  
  450,000   4.625%, 05/01/22 AMBAC Insured  
NR/AA
    475,695  
  120,000   4.650%, 05/01/23 AMBAC Insured  
NR/AA
    126,235  
     
Utah State Board of Regents Office Facility Revenue
           
  450,000  
5.050%, 02/01/20 NPFG Insured
 
Baa1/AA
    463,469  
  360,000  
5.125%, 02/01/22 NPFG Insured
 
Baa1/AA
    369,792  
  1,045,000  
5.000%, 04/01/23 NPFG Insured
 
Aa2/AA-
    1,115,161  
     
Utah State Charter School Finance Authority American
           
     
Preparatory Academy
           
  6,900,000  
8.000%, 03/15/39
 
NR/NR*
    6,963,756  
 
 
10

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Education (continued)
         
   
Utah State Charter School Finance Authority Channing
         
   
Hall Academy
         
$ 1,700,000  
5.750%, 07/15/22 Series A
 
NR/NR*
  $ 1,463,309  
     
Utah State Charter School Finance Authority
           
     
Da Vinci Academy
           
  6,920,000  
8.000%, 03/15/39
 
NR/NR*
    6,983,595  
     
Utah State Charter School Finance Authority
           
     
Entheos Academy
           
  5,895,000  
6.750%, 08/15/38
 
NR/NR*
    5,272,547  
     
Utah State Charter School Finance Authority Fast
           
     
Forward Academy
           
  3,050,700  
6.500%, 11/15/37 144A
 
NR/NR*
    2,562,771  
     
Utah State Charter School Finance Authority
           
     
George Washington Academy
           
  1,000,000  
6.750%, 07/15/28
 
NR/NR*
    917,280  
     
Utah State Charter School Finance Authority
           
     
Legacy Preparatory Academy
           
  5,685,000  
6.750%, 06/15/38
 
NR/NR*
    5,703,988  
  7,780,000  
7.250%, 06/15/39
 
NR/NR*
    7,904,947  
     
Utah State Charter School Finance Authority Noah
           
     
Webster Academy
           
  3,155,000  
6.250%, 06/15/28
 
NR/NR*
    2,684,022  
  1,475,000  
6.500%, 06/15/38
 
NR/NR*
    1,234,914  
     
Utah State Charter School Finance Authority Rockwell
           
     
Charter School
           
  1,000,000  
6.750%, 08/15/28
 
NR/NR*
    916,110  
     
Utah State Charter School Finance Authority Ronald
           
     
Wilson Reagan Academy
           
  1,185,000  
5.750%, 02/15/22 Series A
 
NR/NR*
    1,052,102  
     
Utah State Charter School Finance Authority
           
     
Summit Academy
           
  1,280,000  
5.125%, 06/15/17
 
NR/BBB-
    1,186,906  
     
Utah State Charter School Finance Authority
           
     
Venture Academy
           
  7,235,000  
7.250%, 11/15/38
 
NR/NR*
    7,237,822  
 
 
11

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Education (continued)
         
   
Washington State Higher Education Facilities Authority
         
   
Revenue, Refunding, Gonzaga University Project
         
$ 950,000  
5.000%, 04/01/24 Series B
 
A3/NR
  $ 983,240  
     
Washington State University Revenue
           
  750,000  
5.000%, 10/01/19 AGMC Insured
 
Aa2/AAA
    754,147  
  735,000  
4.600%, 10/01/29 AGMC Insured
 
Aa2/AAA
    755,676  
     
Wayne Township, Indiana Marion City School
           
     
Building Corp.
           
  1,120,000  
5.000%, 07/15/26 NPFG FGIC Insured
 
NR/AA+
    1,193,651  
     
Weber State University, Utah Student Facilities System
           
  1,825,000  
4.400%, 04/01/27 AGMC Insured
 
NR/AAA
    1,880,681  
     
Zionsville, Indiana Community Schools Building Corp.
           
     
First Mortgage, Series Z
           
  2,645,000  
5.000%, 07/15/22 AGMC Insured
 
Aa3/AAA
    2,826,341  
     
Total Education
        94,644,324  
                   
     
Healthcare (1.0%)
           
     
Harris County, Texas Health Facility Development Corp.
           
  145,000  
5.000%, 11/15/28 AMBAC Insured
 
NR/A-
    142,091  
     
Indiana Finance Authority Hospital Revenue,
           
     
Parkview Health System
           
  1,650,000  
5.875%, 05/01/29
  A1/A+     1,698,922  
     
Sarasota County, Florida Public Hospital District
           
     
Revenue, Sarasota Memorial Hospital Project
           
  250,000  
5.625%, 07/01/39
 
A1/NR††
    259,548  
     
Tarrant County, Texas Cultural Education Facilities
           
     
Finance Corp. Hospital Refunding, Scott &
           
     
White Healthcare Project
           
  1,000,000  
5.250%, 08/15/25
  A1/A††     1,041,350  
     
Washington State Health Care Facilities Authority
           
     
Revenue, Coop of Puget Sound
           
  500,000  
5.375%, 12/01/17 AMBAC Insured
 
NR/BBB+†††
    511,655  
     
Total Healthcare
        3,653,566  
 
 
12

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Hospital (2.3%)
         
   
Campbell County, Wyoming Hospital District,
         
   
Hospital Revenue, Memorial Hospital Project
         
$ 1,040,000  
5.000%, 12/01/20
 
NR/A-
  $ 1,070,618  
  1,000,000  
5.500%, 12/01/34
 
NR/A-
    995,950  
     
Collier County, Florida Individual Development
           
     
Authority Health Care Facilities Naples
           
     
Community Hospital, Inc. Project
           
  2,230,000  
4.650%, 10/01/34
 
Aa3/A+
    2,231,182  
     
King County, Washington Public Hospital District
           
     
No. 002, Refunding, Evergreen Healthcare
           
  1,000,000  
5.250%, 12/01/28***
 
Aa3/AA-
    1,060,860  
     
Reno, Nevada Hospital Revenue, Washoe
           
     
Medical Center
           
  725,000  
5.000%, 06/01/23 AGMC Insured
 
Aa3/AAA
    732,032  
  680,000  
5.000%, 06/01/23 AGMC Insured
 
Aa3/AAA
    686,596  
     
Richmond, Indiana Hospital Revenue
           
  250,000  
5.000%, 01/01/19
 
NR/A+††
    265,435  
     
Riverton, Utah Hospital Revenue, IHC Health
           
     
Services, Inc.
           
  500,000  
5.000%, 08/15/36
 
Aa1/AA+
    508,760  
     
Washington State Health Care Facilities Authority
           
     
Revenue, Refunding, Fred Hutchinson Cancer
           
  1,280,000  
5.000%, 01/01/18
  A2/A     1,329,357  
     
Total Hospital
        8,880,790  
   
     
Housing (9.0%)
           
     
Alaska Housing Finance Corp. Housing Revenue
           
  915,000  
4.700%, 06/01/27 AMT
 
Aa2/AA
    884,896  
  820,000  
5.250%, 12/01/28 AMT
 
Aa2/AA
    826,568  
     
Alaska State Local Housing Authority
           
  495,000  
5.125%, 06/01/27 Series A2 AMT
 
Aaa/AAA
    497,119  
     
Florida Housing Finance Corp.
           
  660,000  
5.000%, 07/01/21 AMT
 
Aa1/AA+
    672,349  
  465,000  
6.000%, 07/01/28
 
Aa1/AA+
    489,678  
     
Indiana State Housing Finance Authority Single Family
           
  240,000  
4.850%, 07/01/22 AMT
 
Aaa/NR†
    241,296  
 
 
13

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Housing (continued)
         
   
Indianapolis, Indiana Multi-Family
         
$ 440,000  
4.850%, 01/01/21 AMT
 
Aa2/NR
  $ 446,767  
     
Miami-Dade County, Florida Housing Finance
           
     
Authority
           
  535,000  
5.000%, 11/01/23 AGMC Insured AMT
 
Aa3/AAA
    541,650  
     
Nevada Housing Multi-Family, LOC: US Bank
           
  980,000  
4.750%, 04/01/39 AMT
 
NR/AA-
    963,017  
     
North Dakota Housing Authority Home Mortgage
           
     
Revenue
           
  1,955,000  
5.400%, 07/01/23 AMT
 
Aa1/NR
    2,027,433  
  980,000  
5.650%, 07/01/28 AMT
 
Aa1/NR
    1,010,752  
  890,000  
5.400%, 07/01/28
 
Aa1/NR
    935,808  
     
Puerto Rico Housing Finance Authority
           
  1,100,000  
5.125%, 12/01/27
 
NR/AA-†††
    1,129,788  
     
Snohomish County, Washington Housing Authority
           
  150,000  
4.750%, 09/01/10 AMT
 
NR/NR*
    149,754  
  185,000  
4.875%, 09/01/12 AMT
 
NR/NR*
    180,332  
  225,000  
5.000%, 09/01/13 AMT
 
NR/NR*
    216,486  
  185,000  
5.000%, 09/01/14 AMT
 
NR/NR*
    175,090  
  145,000  
5.100%, 09/01/15 AMT
 
NR/NR*
    135,376  
     
South Dakota Housing Development Authority
           
  500,000  
6.000%, 05/01/28
 
Aa1/AAA
    518,125  
     
Texas State Housing Revenue
           
  870,000  
5.250%, 09/01/32 AMT
 
Aa1/AAA
    885,964  
     
Utah Housing Corporation Single Family Mortgage
           
  25,000  
5.250%, 07/01/23 AMT
 
Aa2/AA
    25,167  
  1,120,000  
5.125%, 07/01/24 AMT
 
Aa3/AA-
    1,127,123  
  870,000  
5.000%, 07/01/25 AMT
 
Aa3/AA-
    874,028  
  465,000  
5.100%, 01/01/26 AMT
 
Aa3/AA-
    466,781  
  110,000  
5.650%, 07/01/27 AMT
 
Aa2/AA
    110,616  
  1,630,000  
5.250%, 01/01/28 AMT
 
Aa3/AA-
    1,650,880  
  605,000  
5.200%, 01/01/28 AMT
 
Aa3/AA-
    608,824  
  1,905,000  
5.800%, 07/01/28 AMT
 
Aa3/AA-
    1,977,847  
  665,000  
5.700%, 07/01/28 AMT
 
Aa3/AA
    686,792  
  465,000  
5.500%, 07/01/28 AMT
 
Aa3/AA-
    475,160  
  810,000  
6.100%, 01/01/29 AMT
 
Aa3/AA-
    823,584  
 
 
14

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Housing (continued)
         
   
Utah Housing Corporation Single Family Mortgage
         
$ 1,325,000  
5.250%, 07/01/28 Series A
 
Aa3/AA-
  $ 1,358,774  
     
Utah Housing Corporation Single Family Mortgage
           
  600,000  
4.950%, 01/01/32 Series A Class II
 
Aa2/AA
    603,156  
     
Utah Housing Corporation Single Family Mortgage
           
  2,360,000  
4.500%, 01/01/24 Series A Class III
 
Aa3/AA-
    2,381,405  
     
Utah Housing Corporation Single Family Mortgage
           
  1,000,000  
4.500%, 07/01/23 Series C
 
Aa3/AA-
    1,043,570  
     
Utah State Housing Finance Agency
           
  90,000  
5.700%, 07/01/15 AMT
 
Aa3/AA-
    90,905  
  10,000  
5.650%, 07/01/16 Series 1994C
 
Aaa/NR
    10,000  
  30,000  
5.400%, 07/01/16 AMT
 
Aa2/NR
    30,102  
  485,000  
5.500%, 07/01/18 AMT
 
Aa3/AA-
    495,243  
  10,000  
5.300%, 07/01/18 AMT
 
Aaa/AAA
    10,104  
  50,000  
5.000%, 07/01/18 AMT
 
Aaa/AAA
    50,023  
  30,000  
5.400%, 07/01/20 AMT
 
Aaa/NR
    30,311  
  140,000  
5.600%, 07/01/23 AMT
 
Aa2/AA
    141,627  
  10,000  
5.700%, 07/01/26 NPFG Insured
  A2/A     10,004  
     
Wyoming Community Development Authority
           
     
Housing Revenue
           
  500,000  
4.375%, 12/01/30 Series 2
 
Aa1/AA+
    500,175  
     
Wyoming Community Development Authority
           
     
Housing Revenue
           
  2,000,000  
5.000%, 12/01/22 Series 10 AMT
 
Aa1/AA+
    2,047,960  
  3,315,000  
5.625%, 12/01/38
 
Aa1/AA+
    3,446,539  
     
Total Housing
        34,004,948  
   
     
Industrial Development & Pollution Control (1.1%)
           
     
Emery County, Utah Pollution Control Revenue
           
     
Pacificorp Projects
           
  3,000,000  
5.650%, 11/01/23
  A2/A     3,007,800  
     
Sandy City, Utah Industrial Development, H Shirley
           
     
Wright Project, Refunding Bonds, LOC
           
     
Olympus Bank
           
  250,000  
6.125%, 08/01/16
 
NR/AAA
    250,853  
     
Utah County Environmental Improvement Revenue
           
  1,025,000  
5.050%, 11/01/17
 
Baa1/BBB+
    1,056,918  
     
Total Industrial Development & Pollution Control
        4,315,571  
 
 
15

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Lease (9.5%)
         
   
Celebration Community Development District, Florida
         
$ 290,000  
5.000%, 05/01/22 NPFG Insured
 
Baa1/A
  $ 270,796  
     
Clark County, Nevada Improvement District Revenue
           
  690,000  
5.125%, 12/01/19
 
NR/NR*
    599,327  
     
Clark County, Nevada Improvement District Special
           
     
Local Improvement #128 (Summerlin)
           
  500,000  
5.000%, 02/01/21 Series A
 
NR/NR*
    379,495  
     
Davis County, Utah Lease Revenue DMV Project
           
  78,000  
5.400%, 11/01/17
 
NR/NR*
    78,020  
  83,000  
5.450%, 11/01/18
 
NR/NR*
    83,012  
  87,000  
5.500%, 11/01/19
 
NR/NR*
    87,003  
  92,000  
5.550%, 11/01/20
 
NR/NR*
    91,996  
  97,000  
5.600%, 11/01/21
 
NR/NR*
    96,750  
  103,000  
5.650%, 11/01/22
 
NR/NR*
    102,270  
  108,000  
5.700%, 11/01/23
 
NR/NR*
    106,800  
  115,000  
5.700%, 11/01/24
 
NR/NR*
    112,786  
  121,000  
5.750%, 11/01/25
 
NR/NR*
    118,340  
  128,000  
5.750%, 11/01/26
 
NR/NR*
    124,298  
     
Marion County, Indiana Convention & Recreational
           
     
Facilities Authority
           
  405,000  
5.000%, 06/01/27 NPFG Insured
 
Baa1/A
    401,335  
     
Middle Village, Florida Community Development
           
     
District Special Assessment Revenue
           
  1,090,000  
6.750%, 05/01/25
 
NR/NR*
    1,101,238  
     
New Albany, Indiana Development Authority
           
  500,000  
4.250%, 02/01/22
 
NR/A-
    504,840  
     
Port Saint Lucie, Florida Special Assessment Revenue
           
     
Southwest Annexation District 1-B
           
  500,000  
5.000%, 07/01/27 NPFG Insured
 
Baa1/A
    492,130  
     
Red River, Texas Higher Education TCU Project
           
  1,000,000  
4.375%, 03/15/25
 
Aa3/NR††
    1,013,270  
     
Salt Lake Valley, Utah Fire Service District
           
     
Lease Revenue
           
  2,645,000  
5.200%, 04/01/28
 
Aa2/NR††
    2,791,163  
  1,000,000  
5.250%, 04/01/30
 
Aa2/NR††
    1,049,140  
 
 
16

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Lease (continued)
         
   
South Dakota State Building Authority Revenue
         
$ 500,000  
4.500%, 06/01/24 NPFG FGIC Insured
 
NR/AA-
  $ 516,455  
     
Tolomato Community, Florida Development District
           
     
Special Assessment Revenue
           
  1,000,000  
6.450%, 05/01/23
 
NR/NR*
    876,980  
     
Tooele County, Utah Municipal Building Authority
           
     
School District Lease Revenue
           
  1,000,000  
5.000%, 06/01/28
  A1/A+     1,006,440  
     
Twin Creeks, Utah Special Service District BAN
           
  12,000,000  
7.250%, 07/15/10
 
NR/NR*
    11,995,800  
     
Uintah County, Utah Municipal Building Authority
           
     
Lease Revenue
           
  2,000,000  
5.300%, 06/01/28
 
NR/A+
    2,078,360  
     
Utah State Building Ownership Authority
           
  465,000  
5.000%, 05/15/21
 
Aa1/AA+
    498,833  
  1,755,000  
5.250%, 05/15/23
 
Aa1/AA+
    1,855,123  
  510,000  
5.000%, 05/15/23
 
Aa1/AA+
    541,850  
  1,845,000  
5.250%, 05/15/24
 
Aa1/AA+
    1,942,785  
  1,080,000  
5.000%, 05/15/25
 
Aa1/AA+
    1,125,662  
  1,575,000  
5.000%, 05/15/26
 
Aa1/AA+
    1,685,360  
     
West Bountiful, Utah Courthouse Revenue
           
  410,000  
5.000%, 05/01/19
 
NR/A††
    451,074  
     
West Valley City, Utah Municipal Building Authority
           
     
Lease Revenue Refunding
           
  1,890,000  
4.375%, 08/01/26 Series A NPFG FGIC Insured
 
NR/A+†††
    1,915,591  
     
Total Lease
        36,094,322  
   
     
Local Public Property (1.5%)
           
     
Herriman, Utah Special Assessment Towne Center
           
     
Assessment Area
           
  1,045,000  
4.875%, 11/01/23
 
NR/A
    1,042,398  
  1,150,000  
5.000%, 11/01/25
 
NR/A
    1,136,591  
  1,675,000  
5.000%, 11/01/29
 
NR/A
    1,620,479  
     
Orange County, Florida Sales Tax Revenue
           
  1,000,000  
5.000%, 01/01/27 Series B NPFG-FGIC Insured
 
Aa3/AA
    1,024,390  
 
 
17

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Local Public Property (continued)
         
   
Sevier County, Utah Municipal Building Authority
         
   
Lease Revenue Refunding
         
$ 915,000  
5.000%, 11/15/19 NPFG-FGIC Insured
 
NR/NR*
  $ 927,352  
     
Total Local Public Property
        5,751,210  
   
     
Tax Revenue (9.9%)
           
     
Aqua Isles, Florida Community Development
           
     
District Revenue
           
  935,000  
7.000%, 05/01/38
 
NR/NR*
    734,901  
     
Bay County, Florida Sales Tax Revenue
           
  170,000  
4.750%, 09/01/23 AGMC Insured
 
Aa3/NR
    170,012  
     
Bountiful City, Utah Sales Tax Refunding Bond
           
  556,000  
3.500%, 06/01/13
 
NR/AA
    586,491  
  832,000  
4.000%, 06/01/17
 
NR/AA
    887,253  
     
Brigham, Utah Special Assessment Voluntary
           
     
Assessment Area
           
  1,140,000  
5.250%, 08/01/23
 
A1/NR
    1,185,828  
  1,195,000  
5.500%, 08/01/29
 
A1/NR
    1,223,214  
     
Clark County, Nevada Improvement District
           
  250,000  
5.000%, 08/01/16
 
NR/NR*
    212,328  
     
Coral Canyon, Utah Special Service District
           
  90,000  
5.000%, 07/15/13
 
NR/NR*
    90,005  
  250,000  
5.500%, 07/15/18
 
NR/NR*
    240,740  
     
Florida State Department of Environmental
           
     
Protection Revenue
           
  1,800,000  
5.250%, 07/01/20 NPFG Insured
 
Aa3/AA-
    1,904,886  
     
Henderson, Nevada Local Improvement District
           
  95,000  
4.500%, 09/01/12
 
NR/NR*
    92,808  
  295,000  
5.000%, 09/01/14
 
NR/NR*
    281,669  
  295,000  
5.000%, 09/01/15
 
NR/NR*
    274,639  
  235,000  
5.000%, 03/01/16
 
NR/NR*
    208,109  
     
Holladay, Utah Redevelopment Agency
           
  2,715,000  
4.900%, 12/30/20
 
NR/NR*
    2,329,198  
     
Jordanelle, Utah Special Service District
           
  186,000  
5.000%, 11/15/14
 
NR/NR*
    178,532  
  196,000  
5.100%, 11/15/15
 
NR/NR*
    183,650  
  206,000  
5.200%, 11/15/16
 
NR/NR*
    190,597  
 
 
18

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Tax Revenue (continued)
         
   
Jordanelle, Utah Special Service District (continued)
         
$ 216,000  
5.300%, 11/15/17
 
NR/NR*
  $ 197,346  
  228,000  
5.400%, 11/15/18
 
NR/NR*
    207,339  
  240,000  
5.500%, 11/15/19
 
NR/NR*
    215,714  
  253,000  
5.600%, 11/15/20
 
NR/NR*
    224,960  
  268,000  
5.700%, 11/15/21
 
NR/NR*
    234,873  
  283,000  
5.800%, 11/15/22
 
NR/NR*
    246,915  
  299,000  
6.000%, 11/15/23
 
NR/NR*
    262,677  
     
Jordanelle, Utah Special Service Improvement District
           
  120,000  
8.000%, 10/01/11
 
NR/NR*
    119,464  
     
La Verkin, Utah Sales and Franchise Tax Revenue
           
  571,000  
5.100%, 07/15/27
 
NR/NR*
    493,624  
     
Lehi, Utah Sales Tax
           
  790,000  
5.000%, 06/01/24 AGMC Insured
 
Aa3/AAA
    834,035  
     
Mesquite, Nevada New Special Improvement District
           
  230,000  
5.300%, 08/01/11
 
NR/NR*
    226,348  
  175,000  
4.600%, 08/01/11
 
NR/NR*
    170,700  
  180,000  
4.750%, 08/01/12
 
NR/NR*
    171,585  
  220,000  
4.900%, 08/01/13
 
NR/NR*
    205,300  
  135,000  
5.250%, 08/01/17
 
NR/NR*
    118,558  
  295,000  
5.350%, 08/01/19
 
NR/NR*
    246,077  
  125,000  
5.400%, 08/01/20
 
NR/NR*
    102,731  
  475,000  
5.500%, 08/01/25
 
NR/NR*
    366,520  
     
Mountain Regional Water, Utah Special
           
     
Service District
           
  2,000,000  
5.000%, 12/15/20 NPFG Insured
 
Baa1/A+††
    2,061,720  
     
North Ogden, Utah Sales Tax Revenue
           
  195,000  
5.000%, 11/01/24 Syncora Guarantee, Inc. Insured
 
NR/A+††
    208,558  
     
Payson City, Utah Sales Tax Revenue
           
  445,000  
5.000%, 08/01/21 AGMC Insured
 
Aa3/AAA
    484,761  
     
Pembroke Harbor, Florida Community Development
           
     
District Revenue
           
  1,780,000  
7.000%, 05/01/38
 
NR/NR*
    1,342,565  
     
Puerto Rico Sales Tax Financing Corp., Series A
           
  2,000,000  
5.250%, 08/01/30
 
A1/A+
    2,042,160  
 
 
19

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Tax Revenue (continued)
         
   
Salt Lake City, Utah Sales Tax
         
$ 955,000  
5.000%, 02/01/21
 
NR/AAA
  $ 1,039,804  
  1,005,000  
5.000%, 02/01/22
 
NR/AAA
    1,088,867  
  1,060,000  
5.000%, 02/01/23
 
NR/AAA
    1,142,828  
  1,115,000  
5.000%, 02/01/24
 
NR/AAA
    1,196,718  
     
Sandy City, Utah Sales Tax
           
  605,000  
5.000%, 09/15/20 AMBAC Insured (pre-refunded)
 
NR/AA+
    663,988  
     
South Weber City, Utah
           
  525,000  
5.000%, 01/15/24 NPFG Insured
 
Baa1/A
    555,182  
     
Springville, Utah Special Assessment Revenue
           
  400,000  
5.500%, 01/15/17
 
NR/NR*
    359,472  
  457,000  
5.650%, 01/15/18
 
NR/NR*
    399,697  
  483,000  
5.800%, 01/15/19
 
NR/NR*
    418,486  
  510,000  
5.900%, 01/15/20
 
NR/NR*
    438,309  
  540,000  
6.000%, 01/15/21
 
NR/NR*
    461,025  
     
Uintah County, Utah Municipal Building Authority
           
     
Lease Revenue
           
  500,000  
5.000%, 06/01/24
 
NR/A+
    521,180  
     
Utah Transit Authority Sales Tax Revenue, Series A
           
  1,000,000  
5.000%, 06/15/36 AGMC Insured
 
Aa2/AAA
    1,052,140  
     
Vernal City, Utah Sales Tax Revenue
           
  515,000  
4.750%, 09/01/31 AGMC Insured
 
NR/AAA
    528,040  
  300,000  
4.875%, 09/01/34 AGMC Insured
 
NR/AAA
    307,440  
     
Wasatch County, Utah Building Authority
           
  130,000  
5.000%, 10/01/15
 
A1/NR
    137,584  
  135,000  
5.000%, 10/01/16
 
A1/NR
    142,067  
     
Wasatch County, Utah Sales Tax
           
  205,000  
5.000%, 12/01/16 AMBAC Insured
 
NR/A+
    215,746  
  210,000  
5.000%, 12/01/17 AMBAC Insured
 
NR/A+
    220,059  
  225,000  
5.000%, 12/01/18 AMBAC Insured
 
NR/A+
    234,659  
     
Washington City, Utah Sales Tax
           
  680,000  
5.250%, 11/15/17 AMBAC Insured
 
NR/A
    730,306  
     
Weber County, Utah Sales Tax
           
  385,000  
5.000%, 07/01/23 AMBAC Insured
 
A1/NR
    398,914  
 
 
20

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Tax Revenue (continued)
         
   
West Valley City, Utah Redevelopment Agency
         
$ 1,625,000  
5.000%, 03/01/21
 
NR/A-
  $ 1,699,604  
  320,000  
5.000%, 03/01/22
 
NR/A-
    333,309  
  350,000  
5.000%, 03/01/23
 
NR/A-
    363,052  
  1,000,000  
5.000%, 03/01/24
 
NR/A-
    1,033,010  
     
Total Tax Revenue
        37,440,876  
   
     
Transportation (2.5%)
           
     
Alaska State International Airport Revenue
           
  175,000  
5.000%, 10/01/24 AMBAC Insured AMT
 
Aa3/NR††
    175,389  
     
Florida State Turnpike Authority Turnpike Revenue
           
  500,000  
4.500%, 07/01/22 NPFG Insured
 
Aa3/AA-
    517,695  
     
Indiana Finance Authority Highway Revenue
           
  1,950,000  
4.500%, 12/01/25 NPFG FGIC Insured
 
Aa1/AA+
    1,991,262  
     
Miami-Dade County, Florida Aviation Revenue
           
  600,000  
5.000%, 10/01/24 NPFG FGIC Insured AMT
  A2/A     595,128  
     
North Texas Turnpike Authority Revenue
           
  2,000,000  
6.100%, 01/01/28
  A2/A-     2,202,900  
     
Port of Seattle, Washington Revenue
           
  1,095,000  
5.100%, 04/01/24 AMT NPFG FGIC Insured
 
Aa2/AA-
    1,097,179  
     
Utah Transit Authority Sales Tax & Transportation
           
     
Revenue
           
  1,450,000  
4.125%, 06/15/22 AGMC Insured
 
Aa2/AAA
    1,499,619  
  195,000  
5.250%, 06/15/32 AGMC Insured
 
Aa2/AAA
    224,546  
     
Washoe County, Nevada Highway Revenue
           
  1,000,000  
5.500%, 02/01/28
 
A1/AA-
    1,063,110  
     
Total Transportation
        9,366,828  
   
     
Utility (14.7%)
           
     
Alaska Industrial Development & Export Authority
           
  400,000  
4.625%, 12/01/16 AMBAC Insured AMT
 
NR/NR*
    396,380  
     
Central Weber, Utah Sewer Improvement District
           
     
Revenue Refunding, Series A
           
  1,000,000  
5.000%, 03/01/28 AGMC Insured
 
NR/AAA††
    1,066,990  
  2,000,000  
4.375%, 03/01/30 AGMC Insured
 
NR/AAA††
    2,005,380  
  4,000,000  
5.000%, 03/01/33 AGMC Insured
 
NR/AAA††
    4,167,680  
 
 
21

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Utility (continued)
         
   
Clark County, Washington Public Utility District
         
   
No. 001 Generating Refunding
         
$ 1,000,000  
5.000%, 01/01/24
  A2/A   $ 1,057,250  
     
Cowlitz County, Washington Public Utility District
           
     
Electric Revenue
           
  1,000,000  
4.500%, 09/01/26 NPFG Insured
  A1/A     1,002,610  
     
Eagle Mountain, Utah Gas & Electric
           
  1,385,000  
4.250%, 06/01/20 Radian Insured
 
NR/NR*
    1,313,936  
  1,440,000  
5.000%, 06/01/21 Radian Insured
 
NR/NR*
    1,447,387  
  1,515,000  
5.000%, 06/01/22 Radian Insured
 
NR/NR*
    1,518,197  
     
El Paso, Texas Solid Waste Disposal System Revenue
           
  1,540,000  
5.125%, 08/15/28 AGMC Insured
 
Aa3/AAA
    1,589,188  
     
Garland, Texas Water & Sewer
           
  440,000  
4.500%, 03/01/21 AMBAC Insured
 
NR/AA††
    454,947  
     
Houston, Texas Utility System Revenue, Refunding
           
  1,500,000  
5.250%, 05/15/26 Series A NPFG Insured
 
Aa2/AA
    1,589,460  
  4,665,000  
5.125%, 05/15/28 Series A NPFG Insured
 
Aa2/AA
    4,843,903  
     
Intermountain Power Agency, Utah Power Supply
           
     
Revenue, Refunding
           
  1,000,000  
4.250%, 07/01/19 Series B
  A1/A+††     1,038,890  
  1,000,000  
5.000%, 07/01/21 Series A AGMC Insured
 
Aa3/AAA
    1,065,260  
  1,500,000  
5.250%, 07/01/22 Series A
  A1/A+††     1,598,805  
  250,000  
5.250%, 07/01/23
  A1/A+††     265,583  
     
JEA, Florida Electric System Revenue
           
  500,000  
5.000%, 10/01/26
 
Aa3/A+
    509,225  
     
King County, Washington Sewer Revenue
           
  660,000  
5.000%, 01/01/33 AGMC Insured
 
Aa2/AAA
    687,218  
     
Lower Colorado River Authority, Texas Revenue,
           
     
Refunding
           
  1,535,000  
5.250%, 05/15/29
  A1/A     1,623,999  
     
Manti City, Utah Electric System Revenue
           
  603,000  
5.750%, 02/01/17
 
NR/NR*
    583,149  
     
Miami-Dade County, Florida Water and Sewer
           
     
Revenue System
           
  1,500,000  
5.000%, 10/01/29 AGMC Insured
 
Aa2/AAA
    1,567,140  
 
 
22

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Utility (continued)
         
   
Murray City, Utah Utility Electric Revenue
         
$ 1,340,000  
5.000%, 06/01/25 AMBAC Insured
 
A2/NR
  $ 1,416,702  
     
Orem, Utah Water & Storm Sewer Revenue
           
  1,000,000  
5.000%, 07/15/26
 
NR/AA††
    1,082,320  
     
Port St. Lucie, Florida Utility System Revenue
           
  2,500,000  
5.250%, 09/01/23 NPFG Insured
 
Aa3/NR
    2,699,950  
  1,200,000  
5.250%, 09/01/26 NPFG Insured
 
Aa3/NR
    1,237,800  
     
Puerto Rico Electric Power Authority Revenue Series XX
           
  1,000,000  
4.750%, 07/01/26
 
A3/BBB+
    995,560  
     
Rockport, Indiana Pollution Control Revenue Indiana
           
     
Michigan Power Company Project
           
  1,500,000  
4.625%, 06/01/25 Series A FGIC Insured
 
Baa2/BBB
    1,513,620  
     
Salt Lake & Sandy, Utah Metropolitan Water District,
           
     
Water Revenue, Refunding
           
  650,000  
5.000%, 07/01/31 Series A
 
NR/AA+††
    690,586  
     
Santa Clara, Utah Electric Revenue
           
  1,005,000  
4.250%, 08/01/26 CIFG Insured
 
Baa3/NR
    894,882  
     
South Valley, Utah Water Reclamation Facility
           
     
Sewer Revenue
           
  425,000  
5.000%, 08/15/30 AMBAC Insured
 
NR/A
    439,675  
     
Southern Utah Valley Power System
           
  210,000  
5.250%, 09/15/13 NPFG Insured
 
Baa1/A
    226,628  
  225,000  
5.250%, 09/15/14 NPFG Insured
 
Baa1/A
    241,250  
  235,000  
5.250%, 09/15/15 NPFG Insured
 
Baa1/A
    249,260  
  185,000  
5.125%, 09/15/21 NPFG Insured
 
Baa1/A
    192,034  
     
St. George, Utah Electric Revenue
           
  3,250,000  
5.000%, 06/01/38 AGMC Insured
 
Aa3/NR
    3,337,360  
     
Tacoma, Washington Solid Waste Utility Revenue
           
  1,000,000  
5.000%, 12/01/23 Syncora Guarantee, Inc. Insured
 
A2/AA
    1,035,940  
     
Tallahassee, Florida Energy System Revenue
           
  1,060,000  
5.000%, 10/01/23 NPFG Insured
 
Aa3/AA
    1,118,279  
     
Utah Assessed Municipal Power System
           
  1,000,000  
5.000%, 04/01/21 AGMC Insured
 
Aa3/AAA
    1,054,540  
     
Utah Water Conservancy District
           
  1,400,000  
5.250%, 01/15/27
 
NR/A
    1,460,550  
 
 
23

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Utility (continued)
         
   
Utah Water Finance Agency Revenue Loan
         
   
Financing Program
         
$ 1,200,000  
5.000%, 10/01/20 Series A AMBAC Insured
 
A1/NR
  $ 1,276,248  
     
Washington, Utah Electric Revenue
           
  985,000  
5.000%, 09/01/21 Syncora Guarantee, Inc. Insured
 
Baa1/NR
    1,052,995  
     
White City, Utah Water Improvement
           
     
District Revenue
           
  500,000  
5.000%, 02/01/23 AGMC Insured
 
Aa3/NR
    534,580  
     
Wyoming Municipal Power Agency Power Supply
           
     
System Revenue
           
  720,000  
5.500%, 01/01/28 Series A
  A2/A-     777,190  
     
Wyoming Municipal Power Agency Systems Revenue
           
  1,000,000  
4.500%, 01/01/29
  A2/A-     961,130  
     
Total Utility
        55,881,656  
   
     
Water and Sewer (4.8%)
           
     
Eagle Mountain, Utah Water and Sewer
           
  690,000  
4.750%, 11/15/25 NPFG Insured
 
Baa1/A+††
    706,746  
     
Jacksonville, Florida Water and Sewer System
           
     
Revenue
           
  110,000  
4.625%, 10/01/22
 
Aa2/AA-
    110,261  
     
Kearns, Utah Improvement District, Water & Sewer
           
     
Revenue, Refunding
           
  475,000  
4.250%, 05/01/27 AGMC Insured
 
Aa3/NR
    464,360  
     
Mesquite, Texas Waterworks & Sewer
           
  225,000  
4.500%, 03/01/24 AGMC Insured
 
Aa2/AAA
    230,623  
     
Murray City, Utah Sewer and Water
           
  440,000  
5.000%, 10/01/19 AMBAC Insured
 
Aa3/NR
    460,280  
     
Ogden City, Utah Sewer & Water Revenue
           
  750,000  
4.625%, 06/15/38 AGMC Insured
 
Aa3/NR
    751,710  
     
Pleasant Grove, Utah Water Revenue
           
  450,000  
4.300%, 12/01/20 NPFG Insured
 
Baa1/A+
    465,773  
  760,000  
4.625%, 12/01/23 AGMC Insured
 
NR/AAA
    810,350  
  1,000,000  
5.250%, 12/01/29 AGMC Insured
 
Aaa/AAA
    1,075,860  
  1,370,000  
5.000%, 12/01/31 Series B NPFG Insured
 
Baa1/A+
    1,403,085  
     
Rapid City, South Dakota Water Revenue
           
  500,000  
5.000%, 11/01/29
 
Aa3/NR
    528,580  
  1,500,000  
5.250%, 11/01/39
 
Aa3/NR
    1,574,280  
 
 
24

 
 
TAX-FREE FUND FOR UTAH
 
SCHEDULE OF INVESTMENTS (continued)
 
JUNE 30, 2010
 
   
       
Rating
     
Principal
     
Moody’s/S&P
     
Amount
 
Revenue Bonds (continued)
 
(unaudited)
 
Value
 
   
Water and Sewer (continued)
         
   
Santa Clara, Utah Storm Drain Revenue
         
$ 877,000  
5.100%, 09/15/26
 
NR/NR*
  $ 734,189  
     
Smithfield, Utah Water Revenue
           
  90,000  
4.750%, 06/01/17
 
NR/NR*
    84,389  
  94,000  
4.800%, 06/01/18
 
NR/NR*
    86,644  
  99,000  
4.850%, 06/01/19
 
NR/NR*
    90,208  
  103,000  
4.900%, 06/01/20
 
NR/NR*
    93,053  
  108,000  
5.000%, 06/01/21
 
NR/NR*
    98,232  
  114,000  
5.050%, 06/01/22
 
NR/NR*
    103,250  
  120,000  
5.100%, 06/01/23
 
NR/NR*
    108,287  
  126,000  
5.150%, 06/01/24
 
NR/NR*
    113,676  
  132,000  
5.200%, 06/01/25
 
NR/NR*
    118,797  
  139,000  
5.250%, 06/01/26
 
NR/NR*
    124,979  
     
Upper Trinity Regional Water District, Texas
           
  205,000  
4.500%, 08/01/20 AMBAC Insured
  A1/A-     210,281  
     
Utah Water Finance Agency Revenue
           
  200,000  
5.250%, 07/01/16 AMBAC Insured
 
NR/NR*
    206,930  
  310,000  
5.000%, 10/01/17 AMBAC Insured
 
NR/NR*
    318,420  
  510,000  
5.000%, 07/01/18 AMBAC Insured
 
A2/NR
    534,755  
  105,000  
5.000%, 10/01/20 AMBAC Insured (pre-refunded)
 
NR/NR*
    106,589  
  830,000  
4.500%, 10/01/22 AMBAC Insured
 
A1/NR
    852,028  
  740,000  
5.125%, 07/01/23 AMBAC Insured
 
NR/NR*
    746,593  
  870,000  
4.500%, 10/01/23 AMBAC Insured
 
A1/NR
    888,548  
  2,570,000  
5.000%, 10/01/25 AMBAC Insured
 
A2/NR
    2,639,518  
  1,400,000  
4.500%, 10/01/28 AMBAC Insured
 
A1/NR
    1,391,306  
     
Total Water and Sewer
        18,232,580  
     
Total Revenue Bonds
        319,150,529  
     
Total Investments (cost $368,372,134 - note 4)
  97.5%     369,681,464  
     
Other assets less liabilities
  2.5     9,399,561  
     
Net Assets
  100.0%   $ 379,081,025  
 
 
25

 
 
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
JUNE 30, 2010

 
*
Any security not rated (NR) by any of the approved credit rating services has been determined by the Manager to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a credit rating service.
 
**
Security pledged as collateral for the Fund's delayed delivery or when-issued commitments.
 
***
Security purchased on a delayed delivery or when-issued basis.
 
Fitch Ratings
†        AAA
††      AA
†††    A
††††  BBB
 
   
Percent of
Portfolio Distribution by Quality Rating
 
Portfolio1
Aaa of Moody’s or AAA of S&P and Fitch
    16.3 %
Aa of Moody’s or AA of S&P and Fitch
    36.4  
A of Moody’s or S&P and Fitch
    16.7  
Baa of Moody’s or BBB of S&P and Fitch
    3.7  
Not rated*
    26.9  
      100.0 %
 
1
Calculated using the highest rating of the three rating services.
 
PORTFOLIO ABBREVIATIONS:
AGMC - Assured Guaranty Municipal Corp.
AMBAC - American Municipal Bond Assurance Corp.
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CIFG -CDC IXIS Financial Guaranty
COP - Certificates of Participation
ETM - Escrowed to Maturity
FGIC - Financial Guaranty Insurance Co.
LOC - Letter of Credit
NPFG - National Public Finance Guarantee
NR - Not Rated
PSF - Permanent School Fund
 
See accompanying notes to financial statements.
 
 
26

 
 
TAX-FREE FUND FOR UTAH
 
STATEMENT OF ASSETS AND LIABILITIES
 
JUNE 30, 2010
 
   
ASSETS
     
Investments at value (cost $368,372,134)
  $ 369,681,464  
Cash
    6,009,548  
Interest receivable
    5,417,724  
Receivable for Fund shares sold
    1,259,087  
Receivable from Manager
    447,399  
Other assets
    2,506  
Total assets
    382,817,728  
LIABILITIES
       
Payable for investment securities purchased
    2,107,920  
Payable for Fund shares redeemed
    602,602  
Deferred income
    456,285  
Dividends payable
    328,167  
Management fees payable
    141,659  
Distribution and service fees payable
    3,687  
Accrued expenses
    96,383  
Total liabilities
    3,736,703  
NET ASSETS
  $ 379,081,025  
Net Assets consist of:
       
Capital Stock - Authorized an unlimited number of shares, par value $0.01per share
  $ 386,762  
Additional paid-in capital
    379,744,938  
Net unrealized appreciation on investments (note 4)
    1,309,330  
Accumulated net realized loss on investments
    (2,473,107 )
Undistributed net investment income
    113,102  
    $ 379,081,025  
CLASS A
       
Net Assets
  $ 231,513,620  
Capital shares outstanding
    23,630,337  
Net asset value and redemption price per share
  $ 9.80  
Maximum offering price per share (100/96 of $9.80 adjusted to nearest cent)
  $ 10.21  
CLASS C
       
Net Assets
  $ 88,822,034  
Capital shares outstanding
    9,068,706  
Net asset value and offering price per share
  $ 9.79  
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)
  $ 9.79 *
CLASS Y
       
Net Assets
  $ 58,745,371  
Capital shares outstanding
    5,977,142  
Net asset value, offering and redemption price per share
  $ 9.83  
 
See accompanying notes to financial statements.
 
 
27

 
 
TAX-FREE FUND FOR UTAH
 
STATEMENT OF OPERATIONS
 
YEAR ENDED JUNE 30, 2010
 
   
Investment Income:
           
   
Interest income
        $ 16,869,389  
Other income
          40,256  
            16,909,645  
   
Expenses:
             
   
Management fee (note 3)
  $ 1,615,938          
Distribution and service fees (note 3)
    1,110,489          
Transfer and shareholder servicing agent fees
    131,799          
Trustees’ fees and expenses (note 8)
    110,240          
Legal fees (note 3)
    101,993          
Shareholders’ reports and proxy statements
    49,846          
Registration fees and dues
    26,671          
Fund accounting fees
    26,115          
Custodian fees (note 6)
    25,417          
Auditing and tax fees
    18,500          
Insurance
    14,248          
Chief compliance officer (note 3)
    4,504          
Miscellaneous
    31,729          
Total expenses
    3,267,489          
   
Management fee waived (note 3)
    (217,655 )        
Expenses paid indirectly (note 6)
    (1,077 )        
Net expenses
            3,048,757  
Net investment income
            13,860,888  
   
Realized and Unrealized Gain (Loss) on Investments:
               
   
Net realized loss from securities transactions
    (399,630 )        
Change in unrealized depreciation on investments
    14,709,500          
   
Net realized and unrealized gain (loss) on investments
            14,309,870  
Net increase in net assets resulting from operations
          $ 28,170,758  
 
See accompanying notes to financial statements.
 
 
28

 
 
TAX-FREE FUND FOR UTAH
 
STATEMENTS OF CHANGES IN NET ASSETS
 
   
   
Year Ended
   
Year Ended
 
   
June 30, 2010
   
June 30, 2009
 
OPERATIONS:
           
Net investment income
  $ 13,860,888     $ 11,205,368  
Net realized gain (loss) from securities transactions
    (399,630 )     (1,800,263 )
Change in unrealized depreciation on investments
    14,709,500       (7,737,307 )
Change in net assets from operations
    28,170,758       1,667,798  
   
DISTRIBUTIONS TO SHAREHOLDERS (note 10):
               
Class A Shares:
               
Net investment income
    (9,086,598 )     (7,531,262 )
   
Class C Shares:
               
Net investment income
    (2,687,486 )     (1,461,117 )
   
Class Y Shares:
               
Net investment income
    (2,569,764 )     (2,370,878 )
Change in net assets from distributions
    (14,343,848 )     (11,363,257 )
   
CAPITAL SHARE TRANSACTIONS (note 7):
               
Proceeds from shares sold
    150,086,891       86,962,093  
Reinvested dividends and distributions
    8,227,994       6,415,663  
Cost of shares redeemed
    (52,838,125 )     (62,672,341 )
Change in net assets from capital share transactions
    105,476,760       30,705,415  
   
Change in net assets
    119,303,670       21,009,956  
   
NET ASSETS:
               
Beginning of period
    259,777,355       238,767,399  
   
End of period*
  $ 379,081,025     $ 259,777,355  
   
* Includes undistributed net investment income, respectively, of:
  $ 113,102     $ 94,183  
 
See accompanying notes to financial statements.
 
 
29

 
 
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
 
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 at net asset value plus a sales charge (of varying size depending upon a variety of factors) paid at the time of purchase and bear a distribution fee. Class C Shares are sold at net asset value with no sales charge payable at the time of purchase but with a level charge for servic e and distribution fees for six years thereafter. Class C Shares automatically convert to Class A Shares after six years. Class Y Shares are sold only through institutions acting for investors in a fiduciary, advisory, agency, custodial or similar capacity, and are not offered directly to retail customers. Class Y Shares are sold at net asset value with no sales charge, no redemption fee, no contingent deferred sales charge (“CDSC”) and no distribution fee. 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 customers. Class I Shares are sold at net asset value with no sales charge and no redemption fee or CDSC, although a financial intermediary may charge a fee for effecting a purchase or other transaction on behalf of its customers. Class I Shares may carry a distribution and a service fee. As of the report date, there were no Class I Shares outstanding. All classes of shares represent i nterests 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 da ys 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.
 
 
30

 
 
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
JUNE 30, 2010
 
b)
Fair Value Measurements: The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s investments and are summarized in the following fair value hierarchy.
 
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
 
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
 
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
 
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities
 
The following is a summary of the valuation inputs, representing 100% of the Fund’s investments, used to value the Fund’s net assets as of June 30, 2010:
 
Valuation Inputs
   
Investments in Securities
 
Level 1 – Quoted Prices
  $  
Level 2 – Other Significant Observable Inputs —
       
Municipal Bonds*
    369,681,464  
Level 3 – Significant Unobservable Inputs
     
Total
  $ 369,681,464  
*See schedule of investments for a detailed listing of securities.
 
c)
Subsequent events: In preparing these financial statements, the Fund has evaluated events and transactions for potential recognition or disclosure through the date these financial statements were issued. There were no events or transactions that occurred during the period that materially impacted the amounts or disclosures in the Fund’s financial statements.
 
d)
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. In connection with certain bonds, fee income is recognized by the Fund on a daily basis over the life of the bonds.
 
 
31

 
 
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
JUNE 30, 2010
 
e)
Federal income taxes: It is the policy of the Fund to continue 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.
 
Management has reviewed the tax positions for each of the open tax years (2007-2009) or expected to be taken in the Fund’s 2010 tax returns and has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements.
 
f)
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 also charged directly to such class on a daily basis.
 
g)
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.
 
h)
Accounting pronouncement: In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update “Improving Disclosures about Fair Value Measurements” (“ASU”). The ASU requires enhanced disclosures about a) transfers into and out of Levels 1 and 2, and b) purchases, sales, issuances, and settlements on a gross basis relating to Level 3 measurements. The first disclosure is effective for the first reporting period beginning after December 15, 2009, and for interim periods within those fiscal years. There were no significant transfers into and out of Levels 1 and 2 during the current period presented.
 
The second disclosure will become effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact this disclosure may have 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 entitl ed 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.
 
 
32

 
 
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
JUNE 30, 2010
 
     For the year ended June 30, 2010, the Fund incurred management fees of $1,615,938 of which $217,655 was waived. The Manager has contractually undertaken to waive fees and/or reimburse Fund expenses during the period July 1, 2009 through October 31, 2010 so that total Fund expenses would not exceed 0.82% for Class A Shares, 1.62% for Class C Shares, 0.96% for Class I Shares or 0.62% for Class Y Shares. A similar contractual undertaking is expected to be in place through the period ended October 31, 2011.
 
     The Manager has agreed to pay the Fund $520,626 in installments (with interest) over a maximum period of 58 months related to fees paid by the issuers of certain bonds held by the Fund. As of June 30, 2010, $447,399 remained outstanding over a maximum remaining period of 49 months.
 
     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. 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 repr esented by Class A Shares. For the year ended June 30, 2010, distribution fees on Class A Shares amounted to $396,291, of which the Distributor retained $11,718.
 
     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 year ended June 30, 2010, amounted to $535,648. 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 year ended June 30, 2010 amounted to $178,550. The total of these payments with respect to Class C Shares amounted to $714,198, of which the Distributor retained $90,992.
 
 
33

 
 
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
JUNE 30, 2010
 
     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 brokerage and advisory firms (“intermediaries”), the Fund’s shares are currently sold primarily through the facilities of intermediaries having offices within Utah, with the bulk of any sales commissions inuring to such intermediaries. For the year ended June 30, 2010, total commissions on sales of Class A Shares amounted to $974,084, of which the Distributor received $86,822.
 
c) Other Related Party Transactions:
 
     For the year ended June 30, 2010, the Fund incurred $100,770 of legal fees allocable to Butzel Long PC, counsel to the Fund, for legal services in conjunction with the Fund’s ongoing operations. The Secretary of the Fund is Of Counsel to that firm.
 
4. Purchases and Sales of Securities
 
     During the year ended June 30, 2010, purchases of securities and proceeds from the sales of securities aggregated $130,251,112 and $27,345,900, respectively.
 
     At June 30, 2010, the aggregate tax cost for all securities was $368,259,032. At June 30, 2010, the aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost amounted to $7,341,281 and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value amounted to $5,918,849, for a net unrealized appreciation of $1,422,432.
 
5. Portfolio Orientation
 
     At least 50% of the Fund’s assets will always consist of obligations of Utah-based issuers. At June 30, 2010, the Fund had 57% of its net assets invested in municipal obligations of issuers within Utah. The Fund is also permitted to invest in tax-free municipal obligations of non-Utah-based issuers that are exempt from regular Federal income taxes and, pursuant to an administrative determination of the Utah State Tax Commission issued under statutory authority, the interest on which is currently exempt from Utah individual income taxes. Since the Fund 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 ef fects these may have upon Utah issuers’ ability to meet their obligations.
 
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.
 
 
34

 
 
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
JUNE 30, 2010
 
7. Capital Share Transactions
 
     Transactions in Capital Shares of the Fund were as follows:
 
   
Year Ended
   
Year Ended
 
   
June 30, 2010
   
June 30, 2009
 
   
Shares
   
Amount
   
Shares
   
Amount
 
Class A Shares:
                       
Proceeds from shares sold
    7,149,305     $ 69,395,703       4,236,182     $ 38,937,661  
Reinvested distributions
    548,556       5,317,855       481,016       4,432,815  
Cost of shares redeemed
    (1,848,427 )     (17,947,629 )     (3,194,513 )     (28,482,023 )
Net change
    5,849,434       56,765,929       1,522,685       14,888,453  
Class C Shares:
                               
Proceeds from shares sold
    4,867,236       47,110,413       2,776,510       25,642,043  
Reinvested distributions
    172,660       1,674,970       100,741       927,564  
Cost of shares redeemed
    (1,290,599 )     (12,533,140 )     (839,404 )     (7,773,249 )
Net change
    3,749,297       36,252,243       2,037,847       18,796,358  
Class Y Shares:
                               
Proceeds from shares sold
    3,464,650       33,580,775       2,448,286       22,382,389  
Reinvested distributions
    126,866       1,235,169       114,773       1,055,284  
Cost of shares redeemed
    (2,295,938 )     (22,357,356 )     (2,876,167 )     (26,417,069 )
Net change
    1,295,578       12,458,588       (313,108 )     (2,979,396 )
Total transactions in Fund
                               
shares
    10,894,309     $ 105,476,760       3,247,424     $ 30,705,415  
 
8. Trustees’ Fees and Expenses
 
     At June 30, 2010 there were 9 Trustees, one of whom is affiliated with the Manager and is not paid any fees. The total amount of Trustees’ service fees (for carrying out their responsibilities) and attendance fees paid during the year ended June 30, 2010 was $86,473. Attendance fees are paid to those in attendance at regularly scheduled quarterly Board Meetings and meetings of the Independent Trustees held prior to each quarterly Board Meeting, as well as additional meetings (Audit, Nominating, Shareholder and special meetings). 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 year ended June 30, 2010, such meeting-related expenses amounted to $23,767.
 
 
35

 
 
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
JUNE 30, 2010
 
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 value 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. Net realized capital gains, if any, are distributed annually and are taxable. These distributions are paid in additional shares at the net asset value per share, in cash, or in a combination of both, at the shareholder’s option.
 
     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 increased undistributed net investment income in the amount of $501,879, increased accumulated net realized loss on investments by $3,930 and decreased additional paid-in capital in the amount of $497,949 at June 30, 2010. These adjustments had no impact on the Fund’s aggregate net assets at June 30, 2010. 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, 2010, the Fund had a capital loss carryover of $2,473,108 of which $15,469 expires on June 30, 2011, $253,815 expires on June 30, 2012, $633,324 expires on June 30, 2017 and $1,570,500 expires on June 30, 2018. 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.
 
 
36

 
 
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
JUNE 30, 2010
 
     The tax character of distributions:
 
         
Year Ended June 30,
 
     
2010
   
2009
 
 
Net tax-exempt income
  $ 13,804,462     $ 11,141,377  
 
Ordinary income
    539,386       221,880  
      $ 14,343,848     $ 11,363,257  
 
     As of June 30, 2010, the components of distributable earnings on a tax basis were as follows:
 
     
Undistributed tax-exempt income
  $ 328,167    
 
Accumulated net realized loss
    (2,473,108 )  
 
Unrealized appreciation
    1,422,432    
 
Other temporary differences
    (328,167 )  
      $ (1,050,676 )  
 
     The difference between book basis and tax basis unrealized appreciation is attributable primarily to premium/discount adjustments. The difference between book basis and tax basis undistributed income is due to the timing difference in recognizing dividends paid.
 
11. Ongoing Development
 
     The three major rating agencies (Standard & Poor’s, Moody’s and Fitch) have downgraded or eliminated ratings of the majority of the municipal bond insurance companies since December 2007 due to loss of capital from investments in subprime mortgages. As such, only the ratings of Assured Guaranty Municipal Corp. (formerly FSA) and National Public Finance (formerly MBIA) are now deemed to be investment grade. Some insurance companies, such as AMBAC, have had their ratings withdrawn by the rating agencies. Thus while certain bonds still have insurance, they are no longer rated based upon the ratings of their issuers.
 
 
37

 
 
TAX-FREE FUND FOR UTAH
FINANCIAL HIGHLIGHTS
 
For a share outstanding throughout each period
 
   
Class A
   
Year Ended June 30,
   
2010
 
2009
 
2008
 
2007
 
2006
Net asset value, beginning of period
  $ 9.35     $ 9.73     $ 9.91     $ 9.87     $ 10.26  
Income (loss) from investment operations:
                                       
Net investment income
    0.43 ††     0.44 ††     0.41 ††     0.40     0.40
Net gain (loss) on securities (both realized
                                       
and unrealized)
    0.47       (0.37 )     (0.17 )     0.05       (0.37 )
Total from investment operations
    0.90       0.07       0.24       0.45       0.03  
Less distributions (note 10):
                                       
Dividends from net investment income
    (0.45 )     (0.45 )     (0.42 )     (0.41 )     (0.42 )
Distributions from capital gains
                             
Total distributions
    (0.45 )     (0.45 )     (0.42 )     (0.41 )     (0.42 )
Net asset value, end of period
  $ 9.80     $ 9.35     $ 9.73     $ 9.91     $ 9.87  
Total return (not reflecting sales charge)
    9.74 %     0.91 %     2.45 %     4.60 %     0.28 %
Ratios/supplemental data
                                       
Net assets, end of period (in millions)
  $ 232     $ 166     $ 158     $ 149     $ 142  
Ratio of expenses to average net assets
    0.80 %     0.75 %     0.63 %     0.68 %     0.64 %
Ratio of net investment income to average
                                       
net assets
    4.43 %     4.80 %     4.09 %     3.89 %     3.90 %
Portfolio turnover rate
    8.70 %     24.64 %     18.83 %     17.36 %     9.61 %
The expense and net investment income ratios without the effect of the waiver of a portion of the management fee were (note 3):
 
Ratio of expenses to average net assets
    0.87 %     0.87 %     0.90 %     0.96 %     0.93 %
Ratio of net investment income to average
                                       
net assets
    4.37 %     4.68 %     3.82 %     3.61 %     3.61 %
The expense ratios after giving effect to the waiver and expense offset for uninvested cash balances were (note 3):
 
Ratio of expenses to average net assets
    0.80 %     0.74 %     0.61 %     0.66 %     0.61 %
 

†   Per share amounts have been calculated using the monthly average shares method.
†† Per share amounts have been calculated using the daily average shares method.
 
See accompanying notes to financial statements.
 
 
38

 
 
TAX-FREE FUND FOR UTAH
FINANCIAL HIGHLIGHTS (continued)
 
For a share outstanding throughout each period
 
   
Class C
   
Class Y
 
   
Year Ended June 30,
   
Year Ended June 30,
 
   
2010
   
2009
   
2008
   
2007
   
2006
   
2010
   
2009
   
2008
   
2007
   
2006
 
Net asset value, beginning of period
  $ 9.34     $ 9.72     $ 9.91     $ 9.87     $ 10.26     $ 9.38     $ 9.76     $ 9.94     $ 9.90     $ 10.29  
Income (loss) from investment operations:
                                                                               
Net investment income
    0.35 ††     0.37 ††     0.33 ††     0.32     0.32     0.45 ††     0.46 ††     0.43 ††     0.41     0.42  
Net gain (loss) on securities (both
                                                                               
realized and unrealized)
    0.47       (0.37 )     (0.18 )     0.05       (0.37 )     0.47       (0.37 )     (0.17 )     0.07       (0.37 )
Total from investment operations
    0.82             0.15       0.37       (0.05 )     0.92       0.09       0.26       0.48       0.05  
Less distributions (note 10):
                                                                               
Dividends from net investment income
    (0.37 )     (0.38 )     (0.34 )     (0.33 )     (0.34 )     (0.47 )     (0.47 )     (0.44 )     (0.44 )     (0.44 )
Distributions from capital gains
                                                           
Total distributions
    (0.37 )     (0.38 )     (0.34 )     (0.33 )     (0.34 )     (0.47 )     (0.47 )     (0.44 )     (0.44 )     (0.44 )
Net asset value, end of period
  $ 9.79     $ 9.34     $ 9.72     $ 9.91     $ 9.87     $ 9.83     $ 9.38     $ 9.76     $ 9.94     $ 9.90  
Total return
    8.87 %#     0.10 %#     1.53 %#     3.77 %#     (0.52 )%#     9.94 %     1.13 %     2.67 %     4.80 %     0.49 %
Ratios/supplemental data
                                                                               
Net assets, end of period (in millions)
  $ 89     $ 50     $ 32     $ 31     $ 34     $ 59     $ 44     $ 49     $ 47     $ 40  
Ratio of expenses to average net assets
    1.60 %     1.55 %     1.43 %     1.48 %     1.44 %     0.60 %     0.55 %     0.43 %     0.48 %     0.44 %
Ratio of net investment income to
                                                                               
average net assets
    3.60 %     3.99 %     3.29 %     3.10 %     3.10 %     4.64 %     5.00 %     4.29 %     4.09 %     4.10 %
Portfolio turnover rate
    8.70 %     24.64 %     18.83 %     17.36 %     9.61 %     8.70 %     24.64 %     18.83 %     17.36 %     9.61 %
The expense and net investment income ratios without the effect of the waiver of a portion of the management fee were (note 3):
 
Ratio of expenses to average net assets
    1.66 %     1.67 %     1.70 %     1.76 %     1.72 %     0.67 %     0.67 %     0.70 %     0.76 %     0.72 %
Ratio of net investment income to
                                                                               
average net assets
    3.54 %     3.88 %     3.02 %     2.81 %     2.81 %     4.57 %     4.88 %     4.02 %     3.81 %     3.82 %
The expense ratios after giving effect to the waiver and expense offset for uninvested cash balances were (note 3):
 
Ratio of expenses to average net assets
    1.60 %     1.54 %     1.42 %     1.46 %     1.41 %     0.60 %     0.54 %     0.42 %     0.46 %     0.41 %
 

†    Per share amounts have been calculated using the monthly average shares method.
††  Per share amounts have been calculated using the daily average shares method.
#   Not reflecting CDSC.
 
See accompanying notes to financial statements.
 
 
39

 
 
Additional Information (unaudited)
 
Trustees and Officers(1)
 
   
Positions
           
   
Held with
           
   
Trust,
     
Number of
 
Other Directorships
   
Length of
     
Portfolios
 
Held by Trustee During
   
Service(3) and
     
in Fund
 
Past 5 Years
Name,
 
Qualifications
 
Principal
 
Complex
 
(The position held is
Address(2)
 
for Serving as
 
Occupation(s)
 
Overseen
 
a directorship unless
and Date of Birth
 
Trustee(4)
 
During Past 5 Years
 
by Trustee
 
indicated otherwise.)
 
Interested Trustee(5)
                 
Diana P. Herrmann
New York, NY
(02/25/58)
 
Trustee
since 1997
and President
since 1998
 
More than 20
years of
experience in
mutual fund
management
 
Vice Chair and Chief Executive Officer of Aquila Management Corporation, Founder of the Aquila Group of Funds(6) and parent of Aquila Investment Management LLC, Manager, since 2004, President since 1997, Chief Operating Officer, 1997-2008, a Director since 1984, Secretary since 1986 and previously its Executive Vice President, Senior Vice President or Vice President, 1986-1997; Chief Executive Officer and Vice Chair since 2004, President and Manager since 2003, and Chief Operating Officer (2003-2008), of the Manager; Chair, Vice Chair, President, Executive Vice President and/or Senior Vice President of funds in the Aquila Group of Funds since 1986; Director of the Distributor since 199 7; Governor, Investment Company Institute (the trade organization for the U.S. mutual fund industry dedicated to protecting shareholder interests and educating the public about investing) for various periods since 2004, and head of its Small Funds Committee, 2004-2009; active in charitable and volunteer organizations.
 
12
 
ICI Mutual Insurance Company, a Risk Retention Group (2006-2009 and since 2010)
 
 
40

 
 
   
Positions
           
   
Held with
           
   
Trust,
     
Number of
 
Other Directorships
   
Length of
     
Portfolios
 
Held by Trustee During
   
Service(3) and
     
in Fund
 
Past 5 Years
Name,
 
Qualifications
 
Principal
 
Complex
 
(The position held is
Address(2)
 
for Serving as
 
Occupation(s)
 
Overseen
 
a directorship unless
and Date of Birth
 
Trustee(4)
 
During Past 5 Years
 
by Trustee
 
indicated otherwise.)
 
Non-interested Trustees
                 
Gary C. Cornia
Orem, UT
(06/24/48)
 
Chair
of the Board
of Trustees
since 2005
and Trustee
since 1993
 
Experienced
educator in
business and
finance
 
Dean, Marriott School of Management, Brigham Young University, since 2008; Director, Romney Institute of Public Management, Marriott School of Management, 2004-2008; Professor, Marriott School of Management, 1980-present; Past President, National Tax Association; Fellow, Lincoln Institute of Land Policy, 2002-present; Associate Dean, Marriott School of Management, Brigham Young University, 1991-2000; member, Utah Governor's Tax Review Committee, 1993-2009.
 
5
 
Lincoln Institute of Land Policy, Cambridge, MA
                 
Tucker Hart Adams
Colorado Springs, CO
(01/11/38)
 
Trustee
since 2006
 
Experienced
economist with
extensive
knowledge of
the Rocky
Mountain
region
 
Senior Partner, Summit Economics, since 2010; President, The Adams Group, an economic consulting firm, 1989-2010; formerly Chief Economist, United Banks of Colorado; currently or formerly active with numerous professional and community organizations.
 
4
 
Trustee, Colorado Health Facilities Authority; advisory board, Griffis/Blessings, Inc. (commercial property development and management); advisory board, Kachi Partners (middle market buyouts); formerly Director, Touch America and Mortgage Analysis Computer Corp.
                 
Ernest Calderón
Phoenix, AZ
(10/24/57)
 
Trustee
since 2009
 
Lawyer, active
in public affairs
in the region
 
Founder, Calderón Law Offices, since 2004; Equity Partner, Jennings, Strouss & Salmon, PLC, 1992-2004; member, Arizona Board of Regents since 2003 and member of Governor Janice Brewer’s Transition Team since 2009; Past President, Grand Canyon Council of Boy Scouts of America; Past President, State Bar of Arizona, 2003-2004; member, American Law Institute.
 
3
 
None
 
 
41

 
   
Positions
           
   
Held with
           
   
Trust,
     
Number of
 
Other Directorships
   
Length of
     
Portfolios
 
Held by Trustee During
   
Service(3) and
     
in Fund
 
Past 5 Years
Name,
 
Qualifications
 
Principal
 
Complex
 
(The position held is
Address(2)
 
for Serving as
 
Occupation(s)
 
Overseen
 
a directorship unless
and Date of Birth
 
Trustee(4)
 
During Past 5 Years
 
by Trustee
 
indicated otherwise.)
                 
Thomas A. Christopher
Danville, KY
(12/19/47)
 
Trustee
since 2006
 
Experienced
trustee of
mutual funds,
knowledgeable
about financial
and local
matters
 
Vice President of Robinson, Hughes & Christopher, C.P.A.s, P.S.C., since 1977; President, A Good Place for Fun, Inc., a sports facility, since 1987; Director, Sunrise Children’s Services Inc. (2010); currently or formerly active with various professional and community organizations.
 
5
 
None
                 
Grady Gammage, Jr.
Phoenix, AZ
(10/01/51)
 
Trustee
since 2009
 
Lawyer,
educator,
active in land
use, water
issues and
other public
affairs in the
region
 
Founding partner, Gammage & Burnham, PLC, a law firm, Phoenix, Arizona, since 1983; director, Central Arizona Water Conservation District, 1992-2004; director, Arizona State University Foundation since 1998; Senior Fellow, Morrison Institute for Public Policy; active with Urban Land Institute.
 
4
 
None
                 
Lyle W. Hillyard
Logan, UT
(09/25/40)
 
Trustee
since 2003
 
Lawyer,
experienced
legislator in
region
 
President of the law firm of Hillyard, Anderson & Olsen, Logan, Utah, since 1967; member of Utah Senate, 1985 to present, in the following positions: President, 2000, Senate Majority Leader, 1999-2000, Assistant Majority Whip, 1995-1998; served as Chairman of the following Utah Senate Committees: Tax and Revenue, Senate Judiciary Standing, Joint Executive Appropriations, and Senate Rules; currently serves as Co-Chair, Joint Executive Appropriations.
 
3
 
None
 
 
42

 
 
   
Positions
           
   
Held with
           
   
Trust,
     
Number of
 
Other Directorships
   
Length of
     
Portfolios
 
Held by Trustee During
   
Service(3) and
     
in Fund
 
Past 5 Years
Name,
 
Qualifications
 
Principal
 
Complex
 
(The position held is
Address(2)
 
for Serving as
 
Occupation(s)
 
Overseen
 
a directorship unless
and Date of Birth
 
Trustee(4)
 
During Past 5 Years
 
by Trustee
 
indicated otherwise.)
                 
John C. Lucking
Phoenix, AZ
(05/20/43)
 
Trustee
since 2004
 
Experienced
economist in
the region
 
President, Econ-Linc, an economic consulting firm, since 1995; formerly Consulting Economist, Bank One Arizona and Chief Economist, Valley National Bank; member, Arizona’s Joint Legislative Budget Committee Economic Advisory Panel and the Western Blue Chip Economic Forecast Panel; Board member, Northern Arizona University Foundation since 1997; member, various historical, civic and economic associations.
 
3
 
Formerly Director, Sanu Resources
                 
Anne J. Mills
Castle Rock, CO
(12/23/38)
 
Trustee
since 1994
 
Extensive
financial and
management
experience;
knowledgeable
about
operation and
governance of
mutual funds
 
President, Loring Consulting Company since 2001; Vice President for Business Management and CFO, Ottawa University, 1992-2001, 2006-2008; IBM Corporation, 1965-1991; currently active with various charitable, educational and religious organizations.
 
5
 
None
 
 
43

 
 
   
Positions
           
   
Held with
           
   
Trust,
     
Number of
 
Other Directorships
   
Length of
     
Portfolios
 
Held by Trustee During
   
Service(3) and
     
in Fund
 
Past 5 Years
Name,
 
Qualifications
 
Principal
 
Complex
 
(The position held is
Address(2)
 
for Serving as
 
Occupation(s)
 
Overseen
 
a directorship unless
and Date of Birth
 
Trustee(4)
 
During Past 5 Years
 
by Trustee
 
indicated otherwise.)
 
Other Individuals
 
Chairman Emeritus(7)
                 
Lacy B. Herrmann
New York, NY
(05/12/29)
 
Founder and Chairman Emeritus since 2005, Chairman of the Board of Trustees, 1992-2005
 
Founder and Chairman of the Board, Aquila Management Corporation, the sponsoring organization and parent of the Manager or Administrator and/or Adviser to each fund of the Aquila Group of Funds; Chairman of the Manager or Administrator and/or Adviser to each since 2004; Founder and Chairman Emeritus of each fund in the Aquila Group of Funds; previously Chairman and a Trustee of each fund in the Aquila Group of Funds since its establishment until 2004 or 2005; Director of the Distributor since 1981 and formerly Vice President or Secretary, 1981-1998; Director or trustee, Premier VIT, 1994-2009; Director or trustee of Oppenheimer Quest Value Funds Group, Oppenheimer Small Cap Value Fund, Oppenheimer Midcap Fund, 1987-2009, and Oppenheimer Rochester Group of Funds, 1995-2009; Trustee Emeritus, Brown University and the Hopkins School; active in university, school and charitable organizations.
 
N/A
 
N/A
 
 
44

 
 
   
Positions
           
   
Held with
           
   
Trust,
     
Number of
 
Other Directorships
   
Length of
     
Portfolios
 
Held by Trustee During
   
Service(3) and
     
in Fund
 
Past 5 Years
Name,
 
Qualifications
 
Principal
 
Complex
 
(The position held is
Address(2)
 
for Serving as
 
Occupation(s)
 
Overseen
 
a directorship unless
and Date of Birth
 
Trustee(4)
 
During Past 5 Years
 
by Trustee
 
indicated otherwise.)
 
Officers
                 
Charles E. Childs, III
New York, NY
(04/01/57)
 
Executive Vice President since 2003
 
Executive Vice President of all funds in the Aquila Group of Funds and the Manager and the Manager’s parent since 2003; Executive Vice President and Chief Operating Officer of the Manager and the Manager’s parent since 2008; formerly Senior Vice President, corporate development, Vice President, Assistant Vice President and Associate of the Manager’s parent since 1987; Senior Vice President, Vice President or Assistant Vice President of the Aquila Money-Market Funds, 1988-2003.
 
N/A
 
N/A
                 
Marie E. Aro
Denver, CO
(02/10/55)
 
Senior Vice President since 2010
 
Senior Vice President, Aquila Rocky Mountain Equity Fund since 2004; Senior Vice President, Tax-Free Trust of Arizona since 2010 and Vice President, 2004-2010; Senior Vice President, Aquila Three Peaks High Income Fund since 2006; Senior Vice President, Tax-Free Fund For Utah and Tax-Free Fund of Colorado since 2010; Vice President, INVESCO Funds Group, 1998-2003; Vice President of the Distributor, 1993-1997.
 
N/A
 
N/A
                 
Paul G. O’Brien
Charlotte, NC
(11/28/59)
 
Senior Vice President since 2010
 
Senior Vice President of Aquila Rocky Mountain Equity Fund, Aquila Three Peaks High Income Fund, Tax-Free Trust of Arizona, Tax-Free Fund of Colorado and Tax-Free Fund For Utah since 2010; Managing Director, Aquila Distributors, Inc. since 2009; Held various positions to Senior Vice President and Chief Administrative Officer of Evergreen Investments Services, Inc., 1997 - 2008; Mergers and Acquisitions Coordinator for Wachovia Corporation, 1994 - 1997.
 
N/A
 
N/A
 
 
45

 
 
   
Positions
           
   
Held with
           
   
Trust,
     
Number of
 
Other Directorships
   
Length of
     
Portfolios
 
Held by Trustee During
   
Service(3) and
     
in Fund
 
Past 5 Years
Name,
 
Qualifications
 
Principal
 
Complex
 
(The position held is
Address(2)
 
for Serving as
 
Occupation(s)
 
Overseen
 
a directorship unless
and Date of Birth
 
Trustee(4)
 
During Past 5 Years
 
by Trustee
 
indicated otherwise.)
                 
Todd W. Curtis
Phoenix, AZ
(06/08/49)
 
Vice President since 2009
 
Senior Vice President and Portfolio Manager, Tax-Free Trust of Arizona, since August 2004; Vice President and Portfolio Manager, Churchill Tax-Free Fund of Kentucky, since 2009, backup portfolio manager, 2004-2009; Vice President and Portfolio Manager, Tax-Free Fund For Utah, since 2009; Vice President and Portfolio Manager, Banc One Investment Advisors, Inc. and its predecessors, 1981-2004.
 
N/A
 
N/A
                 
James Thompson
Bountiful, Utah
(03/17/55)
 
Vice President since 2009
 
Vice President and Co-Portfolio Manager, Tax-Free Fund For Utah, since 2009; Assistant Vice President and Backup Portfolio Manager, Tax-Free Trust of Arizona and Churchill Tax-Free Fund of Kentucky, since 2009; Senior Vice President, First Security Bank/Wells Fargo Brokerage Services LLC, Salt Lake City, UT, 1991-2009.
 
N/A
 
N/A
                 
M. Kayleen Willis
Salt Lake City, UT
(06/11/63)
 
Vice President since 2003
 
Vice President, Tax-Free Fund For Utah since September 2003, Assistant Vice President, 2002-2003; Vice President, Aquila Rocky Mountain Equity Fund, since 2004.
 
N/A
 
N/A
                 
Robert S. Driessen
New York, NY
(10/12/47)
 
Chief Compliance Officer since 2009
 
Chief Compliance Officer of each fund in the Aquila Group of Funds, the Manager and the Distributor since December 2009; Vice President, Chief Compliance Officer, Curian Capital, LLC, 2004-2008; Vice President, Chief Compliance Officer, Phoenix Investment Partners, Ltd., 1999-2004; Vice President, Risk Liaison, Corporate Compliance, Bank of America, 1996-1999; Vice President, Securities Compliance, Prudential Insurance Company of America, 1993-1996; various positions to Branch Chief, U.S. Securities and Exchange Commission, 1972-1993.
 
N/A
 
N/A
 
 
46

 
 
   
Positions
           
   
Held with
           
   
Trust,
     
Number of
 
Other Directorships
   
Length of
     
Portfolios
 
Held by Trustee During
   
Service(3) and
     
in Fund
 
Past 5 Years
Name,
 
Qualifications
 
Principal
 
Complex
 
(The position held is
Address(2)
 
for Serving as
 
Occupation(s)
 
Overseen
 
a directorship unless
and Date of Birth
 
Trustee(4)
 
During Past 5 Years
 
by Trustee
 
indicated otherwise.)
                 
Joseph P. DiMaggio
New York, NY
(11/06/56)
 
Chief Financial Officer since 2003 and Treasurer since 2000
 
Chief Financial Officer of each fund in the Aquila Group of Funds since 2003 and Treasurer since 2000.
 
N/A
 
N/A
                 
Edward M. W. Hines
New York, NY
(12/16/39)
 
Secretary since 1992
 
Of Counsel to Butzel Long, a professional corporation, counsel to the Fund, since 2010 and previously Shareholder since 2007; Partner of Hollyer Brady Barrett & Hines LLP, its predecessor as counsel, 1989-2007; Secretary of each fund in the Aquila Group of Funds.
 
N/A
 
N/A
                 
John M. Herndon
New York, NY
(12/17/39)
 
Assistant Secretary since 1995
 
Assistant Secretary of each fund in the Aquila Group of Funds since 1995 and Vice President of the three Aquila Money-Market Funds since 1990; Vice President of the Manager or its predecessor and current parent since 1990.
 
N/A
 
N/A
                 
Yolonda S. Reynolds
New York, NY
(04/23/60)
 
Assistant Treasurer since 2010
 
Director of Fund Accounting for the Aquila Group of Funds since 2007; Investment Accountant, TIIA-CREF, 2007; Sr. Fund Accountant, JP Morgan Chase, 2003-2006.
 
N/A
 
N/A
 
 
47

 
 
   
Positions
           
   
Held with
           
   
Trust,
     
Number of
 
Other Directorships
   
Length of
     
Portfolios
 
Held by Trustee During
   
Service(3) and
     
in Fund
 
Past 5 Years
Name,
 
Qualifications
 
Principal
 
Complex
 
(The position held is
Address(2)
 
for Serving as
 
Occupation(s)
 
Overseen
 
a directorship unless
and Date of Birth
 
Trustee(4)
 
During Past 5 Years
 
by Trustee
 
indicated otherwise.)
                 
Lori A. Vindigni
New York, NY
(11/02/66)
 
Assistant Treasurer since 2000
 
Assistant Treasurer of each fund in the Aquila Group of Funds since 2000; Assistant Vice President of the Manager or its predecessor and current parent since 1998; Fund Accountant for the Aquila Group of Funds, 1995-1998.
 
N/A
 
N/A
 

(1) The Fund’s Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request by calling 800-437-1020 (toll-free) or by visiting www.aquilafunds.com or the EDGAR Database at the SEC’s internet site at www.sec.gov.
(2) The mailing address of each Trustee and officer is c/o Tax-Free Fund For Utah, 380 Madison Avenue, Suite 2300, New York, NY 10017.
(3) Each Trustee holds office until the next annual meeting of shareholders or until his or her successor is elected and qualifies. The term of office of each officer is one year.
(4) These are the qualifications, attributes or skills on which it was concluded that service as Trustee is appropriate.
(5) Ms. Herrmann is an interested person of the Fund as an officer of the Fund, as a director, officer and shareholder of the Manager’s corporate parent, as an officer and Manager of the Manager, and as a shareholder and director of the Distributor. Ms. Herrmann is the daughter of Lacy B. Herrmann, the Founder and Chairman Emeritus of the Fund.
(6) In this material Pacific Capital Cash Assets Trust, Pacific Capital U.S. Government Securities Cash Assets Trust and Pacific Capital Tax-Free Cash Assets Trust, each of which is a money-market fund, are called the “Aquila Money-Market Funds”; Tax-Free Trust of Arizona, Tax-Free Fund of Colorado, Hawaiian Tax-Free Trust, Churchill Tax-Free Fund of Kentucky, Tax-Free Trust of Oregon, Narragansett Insured Tax-Free Income Fund and Tax-Free Fund For Utah, each of which is a tax-free municipal bond fund, are called the “Aquila Municipal Bond Funds”; Aquila Rocky Mountain Equity Fund is an equity fund; and Aquila Three Peaks High Income Fund is a high income corporate bond fund; considered together, these 12 funds are called the “Aquila Group of Funds.”
(7) The Chairman Emeritus may attend Board meetings but has no voting power.
 
 
48

 
 
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 January 1, 2010 and held for the six months ended June 30, 2010.
 
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 June 30, 2010

   
Actual
           
   
Total Return
 
Beginning
 
Ending
 
Expenses
   
Without
 
Account
 
Account
 
Paid During
   
Sales Charges(1)
 
Value
 
Value
 
the Period(2)
Class A
 
3.30%
 
$1,000.00
 
$1,033.00
 
$4.08
Class C
 
2.79%
 
$1,000.00
 
$1,027.90
 
$8.08
Class Y
 
3.40%
 
$1,000.00
 
$1,034.00
 
$3.08
 
(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 0.81%, 1.61% and 0.61% for the Fund’s Class A, C and Y shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
 
 
49

 
 
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 June 30, 2010

   
Hypothetical
           
   
Annualized
 
Beginning
 
Ending
 
Expenses
   
Total
 
Account
 
Account
 
Paid During
   
Return
 
Value
 
Value
 
the Period(1)
Class A
 
5.00%
 
$1,000.00
 
$1,020.78
 
$4.06
Class C
 
5.00%
 
$1,000.00
 
$1,016.82
 
$8.04
Class Y
 
5.00%
 
$1,000.00
 
$1,021.77
 
$3.06
 
(1)
Expenses are equal to the annualized expense ratio of 0.81%, 1.61% and 0.61% for the Fund’s Class A, C and Y shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
 
 
50

 
 
Information Available (unaudited)
 
     Much of the information that the funds in the Aquila Group of Funds produce is automatically sent to you and all other shareholders. Specifically, you are routinely sent your Fund’s entire list of portfolio securities twice a year in the semi-annual and annual reports you receive. Additionally, under Fund policies, the Manager publicly discloses the complete schedule of the Fund’s portfolio holdings, as of each calendar quarter, generally by the 15th day after the end of each calendar quarter. Such information remains accessible until the next schedule is made publicly available. You may obtain a copy of the Fund’s portfolio holdings schedule for the most recently completed period by visiting the Fund’s website at www.aquilaf unds.com. The Fund may also disclose other portfolio holdings as of a specified date (currently the Fund discloses its five largest holdings by value as of the close of the last business day of each calendar month in a posting to its website on approximately the 5th business day following the month end). This information remains on the website until the next such posting. Whenever you wish to see a listing of your Fund’s portfolio other than in your shareholder reports, please check our website at 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 www.sec.gov. You may also review or, for a fee, copy the forms at the SEC’s Public Reference Room in Washington, D.C. or by calling 1-800-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, 2010 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 www.sec.gov.
 

 
Federal Tax Status of Distributions (unaudited)
 
     This information is presented in order to comply with a requirement of the Internal Revenue Code and no action on the part of shareholders is required.
 
     For the fiscal year ended June 30, 2010, $13,804,462 of dividends paid by Tax-Free Fund For Utah, constituting 96.24% of total dividends paid during the fiscal year ended June 30, 2010, were exempt-interest dividends, and the balance was ordinary dividend income.
 
     Prior to February 15, 2010, shareholders were mailed the appropriate tax form(s) which contained information on the status of distributions paid for the 2009 calendar year.
 
     Prior to February 15, 2011, shareholders will be mailed the appropriate tax form(s) which will contain information on the status of distributions paid for the 2010 calendar year.
 
 
51

 
 
PRIVACY NOTICE (unaudited)
 
Tax-Free Fund For Utah
 
Our Privacy Policy. In providing services to you as an individual who owns or is considering investing in shares of the Fund, we collect certain non-public personal information about you. Our policy is to keep this information strictly safeguarded and confidential, and to use or disclose it only as necessary to provide services to you or as otherwise permitted by law. Our privacy policy applies equally to former shareholders and persons who inquire about the Fund.
 
Information We Collect. ”Non-public personal information” is personally identifiable financial information about you as an individual or your family. The kinds of non-public personal information we have about you may include the information you provide us on your share purchase application or in telephone calls or correspondence with us, and information about your fund transactions and holdings, how you voted your shares and the account where your shares are held.
 
Information We Disclose. We disclose non-public personal information about you to companies that provide necessary services to us, such as the Fund’s transfer agent, distributor, investment adviser or sub-adviser, if any, as permitted or required by law, or as authorized by you. Any other use is strictly prohibited. We do not sell information about you or any of our fund shareholders to anyone.
 
Non-California Residents: We also may disclose some of this information to another fund in the Aquila Group of Funds (or its service providers) under joint marketing agreements that permit the funds to use the information only to provide you with information about other funds in the Aquila Group of Funds or new services we are offering that may be of interest to you.
 
California Residents Only: In addition, unless you “opt-out” of the following disclosures using the form that was mailed to you under separate cover, we may disclose some of this information to another fund in the Aquila Group of Funds (or its service providers) under joint marketing agreements that permit the funds to use the information only to provide you with information about other funds in the Aquila Group of Funds or new services we are offering that may be of interest to you.
 
How We Safeguard Your Information. We restrict access to non-public personal information about you to only those persons who need it to provide services to you or who are permitted by law to receive it. We maintain physical, electronic and procedural safeguards to protect the confidentiality of all non-public personal information we have about you.
 
If you have any questions regarding our Privacy Policy, please contact us at 1-800-437-1020.
 
Aquila Distributors, Inc.
Aquila Investment Management LLC
 
This Privacy Policy also has been adopted by Aquila Distributors, Inc. and Aquila Investment Management LLC and applies to all non-public information about you that each of these companies may obtain in connection with services provided to the Fund or to you as a shareholder of the Fund.
 
 
52

 
 
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
Ernest Calderón
Thomas A. Christopher
Grady Gammage, Jr.
Diana P. Herrmann
Lyle W. Hillyard
John C. Lucking
Anne J. Mills
 
Officers
Diana P. Herrmann, President
Marie E. Aro, Senior Vice President
Paul G. O’Brien, Senior Vice President
Todd W. Curtis, Vice President
and Co-Portfolio Manager
James T. Thompson, Vice President
and Co-Portfolio Manager
M. Kayleen Willis, Vice President
Robert S. Driessen, 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
BNY MELLON INVESTMENT SERVICING (US) INC.
101 Sabin Street
Pawtucket, Rhode Island 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, Pennsylvania 19103
 
Further information is contained in the Prospectus,
which must precede or accompany this report.

 
 

 
 
ITEM 2.
CODE OF ETHICS.

(a) As of June 30, 2010 (the end of the reporting period) the Trust has adopted a code of ethics that applies to the Trust's principal executive officer(s)and principal financial officer(s) and persons performing similar functions ("Covered Officers") as defined in the Aquila Group of Funds Code of Ethics for Principal Executive and Senior Financial Officers under Section 406 of the Sarbanes-Oxley Act of 2002;

(f)(1) Pursuant to Item 10(a)(1), a copy of the Trust's Code of  Ethics that applies to the Trust's principal executive officer(s)  and principal financial officer(s) and persons performing similar functions is included as an exhibit to its annual report on this Form N-CSR;

(f)(2)  The text of the Trust's Code of Ethics that applies to the Trust's principal executive officer(s) and principal financial officer(s) and persons performing similar functions has been posted on its Internet website which can be found at the Trust's Internet address at aquilafunds.com.
 
ITEM 3.  
AUDIT COMMITTEE FINANCIAL EXPERT.
 
(a)(1)(ii) The Board of Trustees of the Fund has determined that it does not have at least one audit committee financial expert serving on its audit committee.  The Fund does not have such a person serving on the audit committee because none of the persons currently serving as Trustees happens to have the technical accounting and auditing expertise included in the definition of "audit committee financial expert" recently adopted by the Securities and Exchange Commission in connection with this Form N-CSR, and the Board has not heretofore deemed it necessary to seek such a person for election to the Board.

The primary mission of the Board, which is that of oversight over the operations and affairs of the Fund, confronts the Trustees with a wide and expanding range of issues and responsibilities. The Trustees believe that, accordingly, it is essential that the Board's membership consist of persons with as extensive experience as possible in fulfilling the duties and responsibilities of mutual fund directors and audit committee members and, ideally, with extensive experience and background relating to the economic and financial sectors and securities in which the Fund invests, including exposure to the financial and accounting matters commonly encountered with respect to those sectors and securities.  The Board believes that its current membership sati sfies those criteria.  It recognizes that it would also be helpful to have a member with the relatively focused accounting and auditing expertise reflected in the applicable definition of "audit committee financial expert," just as additional members with similarly focused technical expertise in other areas relevant to the Fund's operations and affairs would also contribute added value. However, the Board believes that the Fund is better served, and its assets better employed, by a policy of hiring experts in various the specialized area of technical accounting and auditing matters, if and as the Board identifies the need, rather than by seeking to expand its numbers by adding technical experts in the areas constituting its domain of responsibility.  The Fund's Audit Committee Charter explicitly authorizes the Committee to retain such experts as it deems necessary in fulfilling its duties
 
ITEM 4.  
PRINCIPAL ACCOUNTANT FEES AND SERVICES.
 
a) Audit Fees - The aggregate fees billed for professional services rendered by the principal accountant for the audit of the Registrant's annual financial statements were $15,400 in 2010 and $14,700 in 2009.
 
b) Audit Related Fees - There were no amounts billed for audit-related fees over the past two years.

c)  Tax Fees - The Registrant was billed by the principal accountant $3,200 and $3,200 in 2009 and 2010, respectively, for return preparation and tax compliance.
 
 
 

 
 
d)  All Other Fees - There were no additional fees paid for audit and non-audit services other than those disclosed in a) thorough c) above.

e)(1)  Currently, the audit committee of the Registrant pre-approves audit services and fees on an engagement-by-engagement basis

e)(2)  None of the services described in b) through d) above were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, all were pre-approved on an engagement-by-engagement basis.

f)  No applicable.

g) There were no non-audit services fees billed by the Registrant's accountant to the Registrant's investment adviser or distributor over the past two years

h)  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 repor ted, 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)(1) Aquila Group of Funds Code of Ethics for Principal Executive and Senior Financial Officers under Section 406 of the Sarbanes-Oxley Act of 2002.

(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
September 7, 2010
 
     
     
By: 
/s/ Joseph P. DiMaggio  
 
Chief Financial Officer and Treasurer
September 7, 2010
 
 
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
September 7, 2010
 
     
     
By: 
/s/ Joseph P. DiMaggio  
 
Joseph P. DiMaggio
Chief Financial Officer and Treasurer
September 7, 2010
 
 
 
 

 
 
TAX-FREE FUND FOR UTAH
 
EXHIBIT INDEX

(a)(1) Aquila Group of Funds Code of Ethics for Principal Executive and Senior Financial Officers under Section 406 of the Sarbanes-Oxley Act of 2002.

(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 e607478_ex99-cert.htm SECTION 306 CERTFICATIONS Unassociated Document
 
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-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 
c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 
d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

 
b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Date: September 7, 2010
 
 
/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-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 
c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 
d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

 
b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 7, 2010
 
 
/s/ Joseph P. DiMaggio  
Title: Chief Financial Officer and Treasurer
 
EX-99.906 CERT 3 e607478_ex99-906cert.htm SECTION 906 CERTIFICATIONS Unassociated Document
 
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 June 30, 2010, (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: September 7, 2010
 
/s/ Diana P. Herrmann  
   
President and Trustee
Tax-Free Fund For Utah
 
       
       
Dated: September 7, 2010
 
/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.
EX-99.CODE ETH 4 e607478_ex99-codeeth.htm SARBANES-OXLEY CODE OF ETHICS Unassociated Document
 
AQUILA GROUP OF FUNDS

CODE OF ETHICS
FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS
UNDER SECTION 406 OF THE SARBANES-OXLEY ACT OF 2002

I.
Covered Officers/Purpose of the Code

This is the code of ethics (the “Code”) for the investment companies within the Aquila Group of Funds (collectively, “Funds” and each, a “Fund,” each of which is detailed in Exhibit A). It applies to the Fund's Principal Executive Officer(s) and Principal Financial Officer(s) (the “Covered Officers,” each of whom is listed in Exhibit B), for the purpose of promoting:

 
·
honest and ethical conduct, including the ethical handling of actual;

 
·
or apparent conflicts of interest between personal and professional relationships;

 
·
full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Fund;

 
·
compliance with applicable laws and governmental rules and regulations;

 
·
the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

 
·
accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

II.
Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

Overview. A “conflict of interest” occurs when a Covered Officer's private interest interferes with the interests of, or his/her service to, the Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of his/her family, receives improper personal benefits as a result of his/her position with the Fund.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (“Investment Company Act”) and the Investment Advisers Act of 1940 (“Investment Advisers Act”). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as “affiliated persons” of the Fund. The Fund's and the investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters o f this Code. Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Fund and the investment adviser of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Fund or for the adviser, or for both), be involved in establishing policies and implementing decisions that will have different effects on the adviser and the Fund. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Fund. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Fu nds' Boards of Trustees (“Boards”) that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.
 
 
 

 
 
Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Fund.

Each Covered Officer must:

 
·
not use his/her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund whereby the Covered Officer would benefit personally to the detriment of the Fund;

 
·
not cause the Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fund;

There are some conflict of interest situations that should always be discussed with the general counsel of the Fund (“General Counsel”), if material. Examples of these include:

 
·
service as a director on the board of any public or private company;

 
·
the receipt of any non-nominal gifts;

 
·
the receipt of any entertainment from any company with which the Fund has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

 
·
any ownership interest in, or any consulting or employment relationship with, any of the Fund's service providers, other than its investment adviser, principal underwriter, administrator or any affiliated person thereof;

 
·
a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership.

III.
Disclosure and Compliance

 
·
Each Covered Officer should familiarize himself/herself with the disclosure requirements generally applicable to the Fund;

 
·
each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund, including to the Fund's Trustees and auditors, and to governmental regulators and self-regulatory organizations;
 
 
2

 
 
 
·
each Covered Officer should, to the extent appropriate within his/her area of responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.
 
IV.
Reporting and Accountability

Each Covered Officer must:

 
·
upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he/she has received, read, and understands the Code;

 
·
annually thereafter affirm to the Board that he/she has complied with the requirements of the Code;

 
·
not retaliate against any other Covered Officer or any employee of the Funds or their affiliated persons for reports of potential violations that are made in good faith; and

 
·
notify the Chair of the Audit Committee of the Fund promptly if he/she knows of any violation of this Code. Failure to do so is itself a violation of this Code.

 
·
file at least annually a complete and accurate Funds' Trustees and Officers Questionnaire.

The General Counsel is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, any approvals or waivers sought by the Chairman of the Board or the President will be considered by the Audit Committee (the “Committee”).

The Funds will follow these procedures in investigating and enforcing this Code:

 
·
the General Counsel will take all appropriate action to investigate any potential violations reported to him;

 
·
if, after such investigation, the General Counsel believes that no violation has occurred, the General Counsel is not required to take any further action;

 
·
any matter that the General Counsel believes is a violation will be reported to the Committee;

 
·
if the Committee concurs that a violation has occurred, it will inform the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer;

 
·
the Committee will be responsible for granting waivers, as appropriate; and

 
·
any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

V.
Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as the policies or procedures of the Funds, the Funds' adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Funds' and their investment adviser's and principal underwriter's codes of ethics under Rule 17j-1 under the Investment Company Act and the adviser's more detailed policies and procedures set forth in their respective codes are separate requirements applying to the Covered Officers and others, and are not part of this Code.
 
 
3

 
 
VI.
Amendments

Any amendments to this Code, other than amendments to Exhibit B, must be approved or ratified by a majority vote of the Board, including a majority of independent Trustees.

VII.
Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the appropriate Board and the General Counsel, and if deemed appropriate by the Board, with other Funds in the complex where the Funds share a common Covered Officer.

VIII.
Internal Use

The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion.
 
 
4

 
 
Exhibit A

Funds Covered by this Code of Ethics

Aquila Three Peaks High Income Fund

Aquila Rocky Mountain Equity Fund

Capital Cash Management Trust

Cascades Trust, consisting of
Tax-Free Trust of Oregon

Cash Assets Trust series, consisting of
Pacific Capital Cash Assets Trust
Pacific Capital Tax-Free Cash Assets Trust
Pacific Capital U.S. Government Cash Assets Trust

Churchill Cash Reserves Trust

Churchill Tax-Free Trust, consisting of
Churchill Tax-Free Fund of Kentucky

Hawaiian Tax-Free Trust

Narragansett Insured Tax-Free Income Fund

Tax-Free Fund For Utah

Tax-Free Fund of Colorado

Tax-Free Trust of Arizona

Tax-Free Trust of Oregon
 
 
 

 
 
Exhibit B

Persons Covered by this Code of Ethics

The following officers of each Fund, and the identities of such officers as of June 30, 2010:

Chairman and/or Chairman Emeritus And Founder
Lacy B. Herrmann
   
Chair, Vice Chair and/or Trustee and/or President
Diana P. Herrmann
   
Chief Financial Officer and Treasurer
Joseph P. DiMaggio

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