Annual
Report |
March 31, 2013
|
A tax-free income investment
![]() ![]() |
![]() |
Serving Rhode Island Investors
For Two Decades
Aquila Narragansett
Tax-Free Income Fund
“Economies of Scale”
|
![]() |
![]() Diana P. Herrmann, President
|
![]() |
Serving Rhode Island Investors
For Two Decades
Aquila Narragansett
Tax-Free Income Fund
ANNUAL REPORT
Management Discussion
|
![]() |
Average Annual Total Return
|
||||||||||||||||
for periods ended March 31, 2013
|
||||||||||||||||
Since
|
||||||||||||||||
Class and Inception Date
|
1 Year
|
5 Years
|
10 Years
|
Inception
|
||||||||||||
Class A since 9/10/92
|
||||||||||||||||
With Maximum Sales Charge
|
(0.11 | )% | 3.32 | % | 3.40 | % | 4.81 | % | ||||||||
Without Sales Charge
|
4.08 | 4.17 | 3.83 | 5.02 | ||||||||||||
Class C since 5/01/96
|
||||||||||||||||
With CDSC*
|
2.18 | 3.29 | 2.95 | 3.79 | ||||||||||||
Without CDSC
|
3.21 | 3.29 | 2.95 | 3.79 | ||||||||||||
Class I since 11/04/98
|
||||||||||||||||
No Sales Charge
|
3.92 | 4.02 | 3.71 | 4.12 | ||||||||||||
Class Y since 5/01/96
|
||||||||||||||||
No Sales Charge
|
4.24 | 4.31 | 3.99 | 4.90 | ||||||||||||
Barclays Capital Index
|
3.85 | 5.27 | 4.46 |
5.29
|
(Class A) | |||||||||||
5.13
|
(Class C & Y) | |||||||||||||||
4.82
|
(Class I) |
Rating
|
|||||||||
Moody’s, S&P
|
|||||||||
Principal
|
and Fitch
|
||||||||
Amount
|
General Obligation Bonds (23.9%)
|
(unaudited)
|
Value
|
||||||
Bristol, Rhode Island
|
|||||||||
$ | 2,200,000 |
4.000%, 02/15/26 AGC Insured
|
Aa2/AA-/NR
|
$ | 2,381,478 | ||||
2,500,000 |
4.375%, 02/15/29 AGC Insured
|
Aa2/AA-/NR
|
2,720,050 | ||||||
Coventry, Rhode Island
|
|||||||||
500,000 |
3.375%, 11/01/21 AGMC Insured
|
A1/NR/NR
|
520,230 | ||||||
Cranston, Rhode Island
|
|||||||||
250,000 |
5.000%, 02/15/22 AGMC Insured
|
||||||||
(pre-refunded)
|
Aa3/AA-/AA-
|
260,295 | |||||||
250,000 |
5.000%, 02/15/24 AGMC Insured
|
||||||||
(pre-refunded)
|
Aa3/AA-/AA-
|
260,295 | |||||||
2,455,000 |
4.625%, 07/01/25 AGMC Insured
|
A2/AA-/NR
|
2,650,860 | ||||||
990,000 |
4.750%, 07/01/28 AGMC Insured
|
A2/AA-/NR
|
1,062,013 | ||||||
1,000,000 |
4.250%, 04/01/18 NPFG Insured
|
A2/A/A
|
1,067,790 | ||||||
1,000,000 |
4.250%, 04/01/19 NPFG Insured
|
A2/A/A
|
1,063,280 | ||||||
1,000,000 |
4.300%, 04/01/20 NPFG Insured
|
A2/A/A
|
1,057,850 | ||||||
1,000,000 |
4.500%, 04/01/23 NPFG Insured
|
A2/A/A
|
1,048,210 | ||||||
1,500,000 |
4.500%, 04/01/26 NPFG Insured
|
A2/A/A
|
1,558,305 | ||||||
750,000 |
4.300%, 07/01/30 2010 Series A
|
||||||||
AGMC Insured
|
A2/AA-/A
|
797,947 | |||||||
500,000 |
4.375%, 02/01/33 2012 Series
|
||||||||
A AGMC Insured
|
A2/AA-/A
|
519,845 | |||||||
Cumberland, Rhode Island
|
|||||||||
1,000,000 |
4.250%, 08/01/17 AGMC Insured
|
A1/AA-/NR
|
1,111,250 | ||||||
600,000 |
4.250%, 08/01/18 AGMC Insured
|
A1/AA-/NR
|
674,022 | ||||||
250,000 |
4.000%, 02/01/14 NPFG/ FGIC
|
||||||||
Insured
|
A1/A/NR
|
250,605 | |||||||
250,000 |
4.000%, 02/01/15 NPFG/ FGIC
|
||||||||
Insured
|
A1/A/NR
|
250,465 | |||||||
250,000 |
4.000%, 02/01/16 NPFG/ FGIC
|
||||||||
Insured
|
A1/A/NR
|
250,430 | |||||||
250,000 |
4.100%, 02/01/17 NPFG/ FGIC
|
||||||||
Insured
|
A1/A/NR
|
250,423 | |||||||
250,000 |
4.150%, 02/01/18 NPFG/ FGIC
|
||||||||
Insured
|
A1/A/NR
|
250,393 | |||||||
500,000 |
4.250%, 11/01/27 Series 2011 A
|
NR/A/NR
|
524,165 | ||||||
500,000 |
4.625%, 11/01/31 Series 2011 A
|
NR/A/NR
|
528,440 | ||||||
East Providence, Rhode Island Refunding
|
|||||||||
2,500,000 |
4.550%, 05/15/30 AGMC Insured
|
A2/AA-/NR
|
2,639,800 |
Rating
|
|||||||||
Moody’s, S&P
|
|||||||||
Principal
|
and Fitch
|
||||||||
Amount
|
General Obligation Bonds (continued)
|
(unaudited)
|
Value
|
||||||
Hopkinton, Rhode Island
|
|||||||||
$ | 500,000 |
4.375%, 08/15/31
|
Aa3/NR/NR
|
$ | 543,960 | ||||
Lincoln, Rhode Island
|
|||||||||
1,000,000 |
4.500%, 08/01/24 NPFG Insured
|
Aa2/NR/AA
|
1,088,500 | ||||||
1,775,000 |
4.500%, 08/01/25 NPFG Insured
|
Aa2/NR/AA
|
1,924,899 | ||||||
2,000,000 |
4.500%, 08/01/26 NPFG Insured
|
Aa2/NR/AA
|
2,158,140 | ||||||
North Providence, Rhode Island
|
|||||||||
500,000 |
4.700%, 09/15/14 AGMC Insured
|
A2/AA-/NR
|
501,225 | ||||||
500,000 |
3.650%, 10/15/14 AGMC Insured
|
A2/AA-/NR
|
505,765 | ||||||
2,225,000 |
3.625%, 07/15/15 AGMC Insured
|
A2/AA-/NR
|
2,320,475 | ||||||
500,000 |
3.750%, 10/15/15 AGMC Insured
|
A2/AA-/NR
|
506,490 | ||||||
250,000 |
4.000%, 10/15/17 AGMC Insured
|
A2/AA-/NR
|
253,200 | ||||||
Pawtucket, Rhode Island
|
|||||||||
910,000 |
4.000%, 04/15/14 AMBAC Insured
|
Baa2/NR/BBB-
|
911,829 | ||||||
1,950,000 |
4.500%, 07/15/26 AGC Insured
|
A3/NR/NR
|
2,072,616 | ||||||
1,500,000 |
4.750%, 07/15/29 AGC Insured
|
A3/NR/NR
|
1,592,685 | ||||||
Providence, Rhode Island
|
|||||||||
500,000 |
5.000%, 07/15/14 AGMC Insured
|
A2/AA-/BBB
|
526,620 | ||||||
1,500,000 |
5.000%, 01/15/23 AGMC Insured
|
||||||||
Series 2010 A Refunding
|
A2/AA-/NR
|
1,710,150 | |||||||
1,500,000 |
5.000%, 01/15/26 AGMC Insured
|
||||||||
Series 2010 A Refunding
|
A2/AA-/NR
|
1,670,445 | |||||||
975,000 |
3.625%, 01/15/29 Series A AGMC
|
||||||||
Insured
|
A2/AA-/BBB
|
961,681 | |||||||
2,510,000 |
3.750%, 01/15/30 Series A AGMC
|
||||||||
Insured
|
A2/AA-/BBB
|
2,485,201 | |||||||
1,000,000 |
750%, 01/15/32 Series A AGMC
|
||||||||
Insured
|
A2/AA-/BBB
|
980,110 | |||||||
Rhode Island State & Providence
|
|||||||||
Plantations Consolidated Capital
|
|||||||||
Development Loan
|
|||||||||
2,000,000 |
4.500%, 02/01/17 NPFG Insured
|
||||||||
(pre-refunded)
|
Aa2/AA/AA
|
2,070,400 | |||||||
1,750,000 |
3.250%, 10/15/31 Series B
|
Aa2/AA/AA
|
1,702,347 | ||||||
Warwick, Rhode Island
|
|||||||||
1,000,000 |
4.000%, 08/01/16 AGMC Insured
|
||||||||
Series 2008
|
Aa3/AA-/NR
|
1,092,780 |
Rating
|
|||||||||
Moody’s, S&P
|
|||||||||
Principal
|
and Fitch
|
||||||||
Amount
|
General Obligation Bonds (continued)
|
(unaudited)
|
Value
|
||||||
Warwick, Rhode Island (continued)
|
|||||||||
1,015,000 |
4.000%, 08/01/17 AGMC Insured
|
||||||||
Series 2008
|
Aa3/AA-/NR
|
$ | 1,128,142 | ||||||
905,000 |
4.250%, 01/15/18 Syncora Guarantee,
|
||||||||
Inc. Insured
|
Aa3/AA-/NR
|
974,893 | |||||||
West Warwick, Rhode Island
|
|||||||||
500,000 |
4.875%, 03/01/16 AMBAC Insured
|
Baa1/NR/BBB+
|
501,530 | ||||||
670,000 |
5.000%, 03/01/17 AMBAC Insured
|
Baa1/NR/BBB+
|
672,104 | ||||||
700,000 |
5.050%, 03/01/18 AMBAC Insured
|
Baa1/NR/BBB+
|
702,240 | ||||||
735,000 |
5.100%, 03/01/19 AMBAC Insured
|
Baa1/NR/BBB+
|
737,381 | ||||||
1,900,000 |
4.625%, 04/01/26 AGC Insured
|
A3/NR/NR
|
2,081,336 | ||||||
1,400,000 |
4.750%, 04/01/29 AGC Insured
|
A3/NR/NR
|
1,522,290 | ||||||
Westerly, Rhode Island
|
|||||||||
900,000 |
4.000%, 07/01/17 NPFG Insured
|
Aa2/AA/NR
|
983,556 | ||||||
900,000 |
4.000%, 07/01/18 NPFG Insured
|
Aa2/AA/NR
|
985,068 | ||||||
Woonsocket, Rhode Island
|
|||||||||
550,000 |
4.250%, 03/01/25 AMBAC Insured
|
B2/NR/B
|
439,813 | ||||||
Total General Obligation Bonds
|
62,006,312 | ||||||||
Revenue Bonds (73.6%)
|
|||||||||
Development Revenue Bonds (4.8%)
|
|||||||||
Providence, Rhode Island Redevelopment
|
|||||||||
Agency Revenue Refunding Public
|
|||||||||
Safety Building Project
|
|||||||||
2,000,000 |
4.750%, 04/01/22 AMBAC Insured
|
||||||||
Series A
|
Baa2/BBB-/NR
|
2,042,020 | |||||||
1,000,000 |
5.000%, 04/01/28 AMBAC Insured
|
||||||||
Series A
|
Baa2/BBB-/NR
|
1,010,210 | |||||||
Rhode Island Certificates of Participation
|
|||||||||
(Central Power Plant)
|
|||||||||
1,000,000 |
4.000%, 10/01/20 Series D AGMC
|
||||||||
Insured
|
Aa3/AA-/AA-
|
1,063,830 | |||||||
Rhode Island Certificates of Participation
|
|||||||||
(Kent County Court House Project)
|
|||||||||
250,000 |
5.000%, 10/01/22 NPFG Insured
|
||||||||
Series 2004 A
|
Aa3/AA-/AA-
|
264,835 | |||||||
Rhode Island Convention Center
|
|||||||||
Authority Revenue Refunding
|
|||||||||
2,000,000 |
5.000%, 05/15/21 AGMC Insured
|
Aa3/AA-/NR
|
2,128,420 |
Rating
|
|||||||||
Moody’s, S&P
|
|||||||||
Principal
|
and Fitch
|
||||||||
Amount
|
Revenue Bonds (continued)
|
(unaudited)
|
Value
|
||||||
Development Revenue Bonds (continued)
|
|||||||||
Rhode Island Convention Center
|
|||||||||
Authority Revenue Refunding
|
|||||||||
(continued)
|
|||||||||
$ | 4,000,000 |
5.000%, 05/15/23 AGMC Insured
|
|||||||
Series 2005 A
|
Aa3/AA-/NR
|
$ | 4,220,080 | ||||||
1,500,000 |
5.500%, 05/15/27 AGMC Insured
|
||||||||
Series A
|
Aa3/AA-/AA-
|
1,691,115 | |||||||
Total Development Revenue Bonds
|
12,420,510 | ||||||||
Higher Education Revenue Bonds (23.0%)
|
|||||||||
Rhode Island Health & Education
|
|||||||||
Building Corp., Brown University
|
|||||||||
2,500,000 |
4.750%, 09/01/33 Series 2003 A
|
Aa1/AA+/NR
|
2,529,075 | ||||||
1,000,000 |
4.750%, 09/01/37 Series 2003 A
|
Aa1/AA+/NR
|
1,010,810 | ||||||
Rhode Island Health & Education
|
|||||||||
Building Corp., Bryant University
|
|||||||||
1,115,000 |
4.500%, 12/01/27 Series 2011
|
A2/A/NR
|
1,197,644 | ||||||
1,455,000 |
4.750%, 12/01/29 Series 2011
|
A2/A/NR
|
1,578,486 | ||||||
1,000,000 |
5.000%, 12/01/30 Series 2011
|
A2/A/NR
|
1,106,470 | ||||||
1,425,000 |
5.000%, 12/01/31 Series 2011
|
A2/A/NR
|
1,567,799 | ||||||
Rhode Island Health & Education
|
|||||||||
Building Corp., Higher Educational
|
|||||||||
Facilities
|
|||||||||
1,010,000 |
3.625%, 09/15/14 Series 2003 B NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
1,014,585 | |||||||
1,050,000 |
4.000%, 09/15/15 Series 2003 B NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
1,061,718 | |||||||
1,040,000 |
4.000%, 09/15/16 Series 2003 B NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
1,046,968 | |||||||
600,000 |
3.625%, 09/15/14 Series 2003 C NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
602,856 | |||||||
500,000 |
4.000%, 09/15/15 Series 2003 C NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
505,805 | |||||||
500,000 |
4.000%, 09/15/16 Series 2003 C NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
503,575 | |||||||
5,000,000 |
5.000%, 09/15/30 AGMC Insured
|
A1/NR/NR
|
5,505,250 |
Rating
|
|||||||||
Moody’s, S&P
|
|||||||||
Principal
|
and Fitch
|
||||||||
Amount
|
Revenue Bonds (continued)
|
(unaudited)
|
Value
|
||||||
Higher Education Revenue Bonds
|
|||||||||
(continued)
|
|||||||||
Rhode Island Health & Education
|
|||||||||
Building Corp., Johnson & Wales
|
|||||||||
University
|
|||||||||
$ | 465,000 |
5.500%, 04/01/15 Series 1999 A NPFG
|
|||||||
Insured
|
Baa2/NR/NR
|
$ | 500,266 | ||||||
900,000 |
5.500%, 04/01/16 Series 1999 A NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
991,386 | |||||||
785,000 |
5.500%, 04/01/17 Series 1999 A NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
881,626 | |||||||
500,000 |
5.250%, 04/01/14 Series 2003 Syncora
|
||||||||
Guarantee, Inc. Insured
|
NR/NR/NR*
|
501,620 | |||||||
2,000,000 |
4.000%, 04/01/14 Series 2003 Syncora
|
||||||||
Guarantee, Inc. Insured
|
NR/NR/NR*
|
2,004,740 | |||||||
1,500,000 |
5.000%, 04/01/29 NPFG Insured
|
Baa2/NR/NR
|
1,500,840 | ||||||
Rhode Island Health & Educational
|
|||||||||
Building Corp., Higher Education
|
|||||||||
Facility, New England Institute of
|
|||||||||
Technology
|
|||||||||
3,000,000 |
4.750%, 03/01/30 Series 2010 A
|
NR/A/A+
|
3,245,580 | ||||||
Rhode Island Health & Educational
|
|||||||||
Building Corp., Higher Education
|
|||||||||
Facility, Rhode Island School of Design
|
|||||||||
5,000,000 |
4.000%, 06/01/31 2012 Series A
|
A1/NR/A+
|
5,115,450 | ||||||
1,750,000 |
3.125%, 08/15/25 AGMC Insured
|
||||||||
Series B
|
A1/AA-/NR
|
1,750,665 | |||||||
2,115,000 |
3.500%, 08/15/29 AGMC Insured
|
||||||||
Series B
|
A1/AA-/NR
|
2,116,607 | |||||||
1,000,000 |
3.500%, 08/15/30 AGMC Insured
|
||||||||
Series B
|
A1/AA-/NR
|
993,530 | |||||||
1,310,000 |
5.625%, 08/15/22 Syncora Guarantee,
|
||||||||
Inc. Insured Series D (pre-refunded).
|
A1/NR/NR
|
1,382,063 | |||||||
900,000 |
5.000%, 08/15/23 Syncora Guarantee,
|
||||||||
Inc. Insured Series D (pre-refunded).
|
A1/NR/NR
|
957,906 | |||||||
3,000,000 |
3.500%, 06/01/29 Series 2012
|
A1/NR/A+
|
2,967,000 |
Rating
|
|||||||||
Moody’s, S&P
|
|||||||||
Principal
|
and Fitch
|
||||||||
Amount
|
Revenue Bonds (continued)
|
(unaudited)
|
Value
|
||||||
Higher Education Revenue Bonds
|
|||||||||
(continued)
|
|||||||||
Rhode Island Health & Educational
|
|||||||||
Building Corp., Higher Education
|
|||||||||
Facility, University of Rhode Island
|
|||||||||
Auxiliary Enterprise
|
|||||||||
$ | 2,000,000 |
5.000%, 09/15/30 Series 2010 B
|
|||||||
AGMC Insured
|
A1/AA-/NR
|
$ | 2,229,900 | ||||||
Rhode Island Health & Educational
|
|||||||||
Building Corp., University of
|
|||||||||
Rhode Island
|
|||||||||
800,000 |
5.000%, 09/15/23 Series 2003 C
|
||||||||
Refunding NPFG Insured
|
Baa2/NR/NR
|
804,824 | |||||||
1,000,000 |
4.500%, 09/15/26 Series 2005 G
|
||||||||
Refunding AMBAC Insured
|
Aa3/A+/NR
|
1,041,660 | |||||||
Rhode Island Health & Education
|
|||||||||
Facilities Authority, Providence
|
|||||||||
College
|
|||||||||
1,000,000 |
4.250%, 11/01/14 Syncora Guarantee,
|
||||||||
Inc. Insured (pre-refunded)
|
A2/NR/NR
|
1,023,310 | |||||||
2,500,000 |
4.375%, 11/01/15 Syncora Guarantee,
|
||||||||
Inc. Insured (pre-refunded)
|
A2/NR/NR
|
2,560,100 | |||||||
2,500,000 |
4.500%, 11/01/16 Syncora Guarantee,
|
||||||||
Inc. Insured (pre-refunded)
|
A2/NR/NR
|
2,561,900 | |||||||
1,000,000 |
4.500%, 11/01/17 Syncora Guarantee,
|
||||||||
Inc. Insured (pre-refunded)
|
A2/NR/NR
|
1,024,760 | |||||||
1,000,000 |
5.000%, 11/01/24 Syncora Guarantee,
|
||||||||
Inc. Insured Series 2003 A
|
|||||||||
(pre-refunded)
|
A2/NR/NR
|
1,027,640 | |||||||
1,500,000 |
4.000%, 11/01/31
|
A2/A/NR
|
1,539,450 | ||||||
Rhode Island State Economic
|
|||||||||
Development Corp., University of
|
|||||||||
Rhode Island
|
|||||||||
750,000 |
4.900%, 11/01/13 Series 1999 AGMC
|
||||||||
Insured
|
A2/NR/NR
|
752,205 | |||||||
750,000 |
5.000%, 11/01/14 Series 1999 AGMC
|
||||||||
Insured
|
A2/NR/NR
|
752,257 | |||||||
Total Higher Education Revenue Bonds
|
59,458,326 |
Rating
|
|||||||||
Moody’s, S&P
|
|||||||||
Principal
|
and Fitch
|
||||||||
Amount
|
Revenue Bonds (continued)
|
(unaudited)
|
Value
|
||||||
Hospital Revenue Bonds (3.7%)
|
|||||||||
Rhode Island Health & Education
|
|||||||||
Building Corp., Lifespan Obligation
|
|||||||||
$ | 2,500,000 |
5.000%, 05/15/20 Series A AGMC
|
|||||||
Insured
|
A2/AA-/NR
|
$ | 2,720,725 | ||||||
5,000,000 |
5.000%, 05/15/26 Series A AGMC
|
||||||||
Insured
|
A2/AA-/NR
|
5,321,350 | |||||||
1,500,000 |
5.250%, 05/15/26 NPFG Insured
|
Baa1/NR/NR
|
1,501,395 | ||||||
Total Hospital Revenue Bonds
|
9,543,470 | ||||||||
Housing Revenue Bonds (9.1%)
|
|||||||||
Rhode Island Housing & Mortgage
|
|||||||||
Finance Corp. Home Funding
|
|||||||||
3,195,000 |
4.000%, 10/01/25 Series 2010 #3
|
Aa2/NR/NR
|
3,317,464 | ||||||
2,250,000 |
4.100%, 04/01/28 Series 2010 #3
|
Aa2/NR/NR
|
2,321,820 | ||||||
1,530,000 |
4.050%, 10/01/26 2011 Series 4
|
Aa2/NR/NR
|
1,614,456 | ||||||
995,000 |
4.200%, 10/01/28 2011 Series 4
|
Aa2/NR/NR
|
1,048,889 | ||||||
1,345,000 |
3.050%, 10/01/28 Series 5
|
Aa2/NR/NR
|
1,310,850 | ||||||
1,600,000 |
3.350%, 10/01/33 Series 5
|
Aa2/NR/NR
|
1,578,944 | ||||||
2,360,000 |
3.450%, 04/01/35 Series 5
|
Aa2/NR/NR
|
2,289,035 | ||||||
Rhode Island Housing & Mortgage
|
|||||||||
Finance Corp. Multi-Family Housing
|
|||||||||
2,500,000 |
4.625%, 10/01/25 Series 2010 A
|
Aaa/NR/NR
|
2,647,675 | ||||||
1,475,000 |
3.250%, 10/01/27 Series 1B
|
Aa2/NR/NR
|
1,468,244 | ||||||
2,000,000 |
5.000%, 10/01/30 Series 2010 A
|
Aaa/NR/NR
|
2,095,860 | ||||||
2,400,000 |
3.625%, 10/01/32 Series 1B
|
Aa2/NR/NR
|
2,388,360 | ||||||
1,500,000 |
3.900%, 10/01/37 Series 1B
|
Aa2/NR/NR
|
1,490,625 | ||||||
Total Housing Revenue Bonds
|
23,572,222 | ||||||||
Public School Revenue Bonds (18.9%)
|
|||||||||
Providence, Rhode Island Public
|
|||||||||
Building Authority, School Projects
|
|||||||||
500,000 |
5.500%, 12/15/14 Series 1996 B NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
501,755 | |||||||
500,000 |
5.500%, 12/15/15 Series 1996 B NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
501,630 | |||||||
1,000,000 |
5.250%, 12/15/14 Series 1998 A
|
||||||||
AGMC Insured
|
A2/AA-/NR
|
1,003,200 | |||||||
685,000 |
5.000%, 12/15/18 Series 1998 A
|
||||||||
AGMC Insured
|
A2/AA-/NR
|
686,740 |
Rating
|
|||||||||
Moody’s, S&P
|
|||||||||
Principal
|
and Fitch
|
||||||||
Amount
|
Revenue Bonds (continued)
|
(unaudited)
|
Value
|
||||||
Public School Revenue Bonds (continued)
|
|||||||||
Providence, Rhode Island Public
|
|||||||||
Building Authority, School Projects
|
|||||||||
(continued)
|
|||||||||
500,000 |
5.125%, 12/15/14 Series
|
||||||||
1999 A AMBAC Insured
|
Baa2/BBB-/NR
|
$ | 501,015 | ||||||
250,000 |
5.250%, 12/15/15 Series
|
||||||||
1999 A AMBAC Insured
|
Baa2/BBB-/NR
|
250,485 | |||||||
1,500,000 |
5.250%, 12/15/17 Series
|
||||||||
1999 A AMBAC Insured
|
Baa2/BBB-/NR
|
1,503,060 | |||||||
1,000,000 |
5.250%, 12/15/19 Series
|
||||||||
1999 A AMBAC Insured
|
Baa2/BBB-/NR
|
1,001,750 | |||||||
1,000,000 |
4.000%, 12/15/13 Series
|
||||||||
2003 A NPFG Insured
|
Baa2/BBB-/NR
|
1,002,370 | |||||||
1,505,000 |
4.000%, 12/15/14 Series
|
||||||||
2003 A NPFG Insured
|
Baa2/BBB-/NR
|
1,507,965 | |||||||
1,570,000 |
4.000%, 12/15/15 Series
|
||||||||
2003 A NPFG Insured
|
Baa2/BBB-/NR
|
1,572,873 | |||||||
1,630,000 |
4.000%, 12/15/16 Series 2003 A NPFG
|
||||||||
Insured
|
Baa2/BBB-/NR
|
1,632,559 | |||||||
3,000,000 |
4.500%, 05/15/27 Series A AGMC
|
||||||||
Insured
|
A2/AA-/NR
|
3,144,480 | |||||||
3,000,000 |
4.500%, 05/15/28 Series 2007 A
|
||||||||
AGMC Insured
|
A2/AA-/NR
|
3,128,010 | |||||||
2,000,000 |
4.500%, 05/15/26 Series 2007 A
|
||||||||
AGMC Insured
|
A2/AA-/NR
|
2,105,000 | |||||||
3,000,000 |
4.500%, 05/15/27 Series 2007 B
|
||||||||
AGMC Insured
|
A2/AA-/NR
|
3,132,720 | |||||||
3,000,000 |
4.500%, 05/15/28 Series 2007 C
|
||||||||
AGMC Insured
|
A2/AA-/NR
|
3,116,310 | |||||||
Rhode Island Certificates of Participation
|
|||||||||
(School for the Deaf Project)
|
|||||||||
1,000,000 |
5.500%, 04/01/27 Series C 2009 AGC
|
||||||||
Insured
|
Aa3/AA-/AA-
|
1,116,460 | |||||||
500,000 |
5.625%, 04/01/29 Series C 2009 AGC
|
||||||||
Insured
|
Aa3/AA-/AA-
|
557,290 | |||||||
Rhode Island Health & Education
|
|||||||||
Building Corp., Public School
|
|||||||||
Financing Program - Chariho
|
|||||||||
Regional School District
|
|||||||||
1,000,000 |
5.000%, 05/15/26 Series 2011B
|
Aa3/NR/NR
|
1,110,370 |
Rating
|
|||||||||
Moody’s, S&P
|
|||||||||
Principal
|
and Fitch
|
||||||||
Amount
|
Revenue Bonds (continued)
|
(unaudited)
|
Value
|
||||||
Public School Revenue Bonds (continued)
|
|||||||||
Rhode Island Health & Education
|
|||||||||
Building Corp., Public School
|
|||||||||
Financing Program, East Greenwich
|
|||||||||
$ | 1,150,000 |
3.125%, 05/15/28
|
Aa1/AA+/NR
|
$ | 1,149,287 | ||||
1,600,000 |
3.250%, 05/15/29
|
Aa1/AA+/NR
|
1,607,504 | ||||||
1,650,000 |
3.375%, 05/15/30
|
Aa1/AA+/NR
|
1,666,120 | ||||||
1,200,000 |
3.500%, 05/15/31
|
Aa1/AA+/NR
|
1,218,732 | ||||||
Rhode Island Health & Education
|
|||||||||
Building Corp., Public School
|
|||||||||
Financing Program, City of East
|
|||||||||
Providence
|
|||||||||
1,000,000 |
3.375%, 05/15/27 Series B
|
Aa3/NR/NR
|
970,920 | ||||||
1,000,000 |
3.625%, 05/15/32 Series B
|
Aa3/NR/NR
|
956,640 | ||||||
Rhode Island Health & Education
|
|||||||||
Building Corp., Public School
|
|||||||||
Financing Program
|
|||||||||
1,000,000 |
5.000%, 05/15/17 Series 2006 A
|
||||||||
AGMC Insured
|
A2/AA-/NR
|
1,105,200 | |||||||
500,000 |
5.000%, 05/15/20 Series 2007 A
|
||||||||
AGMC Insured
|
Aa3/NR/NR
|
557,725 | |||||||
500,000 |
5.000%, 05/15/17 Series 2008 A
|
||||||||
AGMC Insured
|
Aa3/NR/NR
|
565,750 | |||||||
1,000,000 |
4.250%, 05/15/21 Series 2007 B
|
||||||||
AGMC Insured
|
A2/AA-/NR
|
1,068,440 | |||||||
1,500,000 |
4.250%, 05/15/21 Series A AGMC
|
||||||||
Insured
|
Aa3/NR/NR
|
1,618,575 | |||||||
2,000,000 |
4.375%, 05/15/22 Series A AGMC
|
||||||||
Insured
|
Aa3/NR/NR
|
2,160,040 | |||||||
3,000,000 |
4.500%, 05/15/25 Series A AGMC
|
||||||||
Insured
|
Aa3/NR/NR
|
3,223,680 | |||||||
2,000,000 |
4.750%, 05/15/29 Series A AGMC
|
||||||||
Insured
|
Aa3/NR/NR
|
2,117,080 | |||||||
Total Public School Revenue Bonds
|
49,061,735 | ||||||||
Student Loan Revenue (0.4%)
|
|||||||||
State of Rhode Island Student Loan
|
|||||||||
Authority
|
|||||||||
1,000,000 |
4.750%, 12/01/23 Senior Series 2010 B
|
NR/A+/A
|
1,055,930 |
Rating
|
|||||||||
Moody’s, S&P
|
|||||||||
Principal
|
and Fitch
|
||||||||
Amount
|
Revenue Bonds (continued)
|
(unaudited)
|
Value
|
||||||
Transportation Revenue Bonds (6.0%)
|
|||||||||
Rhode Island State Economic
|
|||||||||
Development Corp., Airport Revenue
|
|||||||||
$ | 540,000 |
4.625%, 07/01/26 AGC Insured
|
|||||||
Series B
|
Aa3/AA-/A-
|
$ | 572,837 | ||||||
1,000,000 |
5.000%, 07/01/18 AGC Insured
|
||||||||
Series C
|
Aa3/AA-/A-
|
1,137,940 | |||||||
1,500,000 |
5.000%, 07/01/22 NPFG Insured
|
||||||||
Series C
|
A3/BBB+/A-
|
1,574,250 | |||||||
Rhode Island State Economic
|
|||||||||
Development Corp., Motor Fuel Tax
|
|||||||||
Revenue (Rhode Island Department
|
|||||||||
of Transportation)
|
|||||||||
1,000,000 |
4.000%, 06/15/15 Series A AMBAC
|
||||||||
Insured
|
A2/A+/A
|
1,004,440 | |||||||
1,000,000 |
4.000%, 06/15/18 Series 2006A
|
||||||||
AMBAC Insured
|
A2/A+/A
|
1,042,380 | |||||||
2,385,000 |
4.700%, 06/15/23 Series 2003A
|
||||||||
AMBAC Insured
|
A2/A+/A
|
2,392,036 | |||||||
Rhode Island State Economic
|
|||||||||
Development Corp., (Rhode Island
|
|||||||||
Airport Corp. Intermodal Facility
|
|||||||||
Project)
|
|||||||||
1,000,000 |
4.250%, 07/01/17 CIFG Assurance
|
||||||||
North America, Inc. Insured
|
Baa1/BBB+/NR
|
1,058,990 | |||||||
Rhode Island Economic Development
|
|||||||||
Corp. (Rhode Island Department of
|
|||||||||
Transportation)
|
|||||||||
1,500,000 |
5.250%, 06/15/21 AGC Insured
|
Aa3/AA-/A+
|
1,769,460 | ||||||
Rhode Island State Turnpike & Bridge
|
|||||||||
Authority
|
|||||||||
1,600,000 |
4.625%, 12/01/27 Series 2010 A
|
NR/A-/A
|
1,742,416 | ||||||
2,000,000 |
5.125%, 12/01/35 Series 2010 A
|
NR/A-/A
|
2,189,920 | ||||||
1,000,000 |
5.000%, 12/01/35 Series 2010 A
|
NR/A-/A
|
1,086,680 | ||||||
Total Transportation Revenue Bonds
|
15,571,349 | ||||||||
Water and Sewer Revenue Bonds (7.2%)
|
|||||||||
Bristol County, Rhode Island Water
|
|||||||||
Authority
|
|||||||||
1,000,000 |
3.500%, 12/01/13 Series 2004
|
||||||||
Refunding A NPFG Insured
|
Baa2/NR/NR
|
1,011,110 |
Rating
|
|||||||||
Moody’s, S&P
|
|||||||||
Principal
|
and Fitch
|
||||||||
Amount
|
Revenue Bonds (continued)
|
(unaudited)
|
Value
|
||||||
Water and Sewer Revenue Bonds
|
|||||||||
(continued)
|
|||||||||
Bristol County, Rhode Island Water
|
|||||||||
Authority (continued)
|
|||||||||
$ | 1,000,000 |
3.500%, 12/01/14 Series 2004
|
|||||||
Refunding A NPFG Insured
|
Baa2/NR/NR
|
$ | 1,020,740 | ||||||
Narragansett, Rhode Island Bay
|
|||||||||
Commission Wastewater System
|
|||||||||
365,000 |
5.000%, 08/01/27 Series 2003 A NPFG
|
||||||||
Insured
|
Baa2/AA-/NR
|
390,291 | |||||||
1,000,000 |
5.000%, 02/01/32 Series 2007 A NPFG
|
||||||||
Insured
|
NR/AA-/NR
|
1,088,780 | |||||||
4,230,000 |
5.000%, 08/01/35 Series A NPFG
|
||||||||
Insured
|
Baa2/AA-/NR
|
4,478,386 | |||||||
Rhode Island Clean Water Protection
|
|||||||||
Finance Agency
|
|||||||||
295,000 |
4.600%, 10/01/13 Series A AMBAC
|
||||||||
Insured
|
Aaa/NR/NR
|
295,888 | |||||||
325,000 |
4.750%, 10/01/14 Series A AMBAC
|
||||||||
Insured
|
Aaa/NR/NR
|
326,001 | |||||||
1,545,000 |
4.750%, 10/01/18 Series A AMBAC
|
||||||||
Insured
|
Aaa/NR/NR
|
1,549,589 | |||||||
760,000 |
5.400%, 10/01/15 1993 Series A NPFG
|
||||||||
Insured
|
Aaa/NR/NR
|
810,768 | |||||||
500,000 |
4.750%, 10/01/20 1999 Series A
|
||||||||
AMBAC Insured
|
Aaa/NR/NR
|
501,415 | |||||||
Rhode Island Clean Water Finance
|
|||||||||
Agency, Water Pollution Control
|
|||||||||
Bonds
|
|||||||||
310,000 |
5.000%, 10/01/18 Series B NPFG
|
||||||||
Insured
|
Aaa/AAA/NR
|
310,980 | |||||||
4,765,000 |
4.375%, 10/01/21 Series 2002 B NPFG
|
||||||||
Insured
|
Aaa/AAA/AAA
|
4,776,484 | |||||||
Rhode Island Water Resources Board
|
|||||||||
Public Drinking Water Protection
|
|||||||||
1,500,000 |
4.000%, 03/01/14 Series 2002 NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
1,502,655 | |||||||
595,000 |
4.250%, 03/01/15 Series 2002 NPFG
|
||||||||
Insured
|
Baa2/NR/NR
|
596,089 | |||||||
Total Water and Sewer Revenue Bonds
|
18,659,176 |
Rating
|
|||||||||||
Moody’s, S&P
|
|||||||||||
Principal
|
and Fitch
|
||||||||||
Amount
|
Revenue Bonds (continued)
|
(unaudited)
|
Value
|
||||||||
Other Revenue Bonds (0.5%)
|
|||||||||||
State of Rhode Island Depositors
|
|||||||||||
Economic Protection Corp.
|
|||||||||||
$ | 500,000 |
6.000%, 08/01/17 NPFG Insured
|
|||||||||
ETM
|
NR/NR/NR*
|
$ | 542,740 | ||||||||
250,000 |
5.750%, 08/01/21 Series A AGMC
|
||||||||||
Insured ETM
|
NR/NR/NR*
|
326,498 | |||||||||
215,000 |
6.375%, 08/01/22 Series A NPFG
|
||||||||||
Insured ETM
|
NR/NR/AAA
|
294,673 | |||||||||
965,000 |
Total Other Revenue Bonds
|
1,163,911 | |||||||||
Total Revenue Bonds
|
190,506,629 | ||||||||||
Total Investments (cost $243,168,501-
|
|||||||||||
note 4)
|
97.5 | % | 252,512,941 | ||||||||
Other assets less liabilities
|
2.5 | 6,411,208 | |||||||||
Net Assets
|
100.0 | % | $ | 258,924,149 | |||||||
* |
Any security not rated (“NR”) by any of the Nationally Recognized Statistical Rating Organizations (“NRSRO” or “Credit Rating Agency”) has been determined by the Investment Sub-Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a NRSRO.
|
||||||||||
Percent of
|
|||||||||||
Portfolio Distribution By Quality Rating (unaudited)
|
Investments†
|
||||||||||
Aaa of Moody’s or AAA of S&P or Fitch
|
5.3 | % | |||||||||
Pre-refunded bonds††/Escrowed to maturity bonds
|
5.7 | ||||||||||
Aa of Moody’s or AA of S&P or Fitch
|
53.8 | ||||||||||
A of Moody’s or S&P or Fitch
|
21.1 | ||||||||||
Baa of Moody’s or BBB of S&P or Fitch
|
12.9 | ||||||||||
B of Moody’s or B of Fitch
|
0.2 | ||||||||||
Not Rated*
|
1.0 | ||||||||||
100.0 | % |
† |
Where applicable, calculated using the highest rating of the three NRSROs.
|
|
|
†† |
Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date.
|
|
|
PORTFOLIO ABBREVIATIONS:
AGC - Assured Guaranty Corp
AGMC - Assured Guaranty Municipal Corp.
AMBAC - American Municipal Bond Assurance Corp.
CIFG - CDC IXIS Financial Guaranty
ETM - Escrowed to Maturity
FGIC - Financial Guaranty Insurance Co.
NPFG - National Public Finance Guarantee
NR - Not Rated
|
ASSETS
|
||||
Investments at value (cost $243,168,501)
|
$ | 252,512,941 | ||
Cash
|
2,771,242 | |||
Interest receivable
|
3,271,881 | |||
Receivable for Fund shares sold
|
1,001,500 | |||
Other assets
|
10,425 | |||
Total assets
|
259,567,989 | |||
LIABILITIES
|
||||
Dividends payable
|
253,621 | |||
Payable for Fund shares redeemed
|
224,033 | |||
Management fee payable
|
81,260 | |||
Distribution and service fees payable
|
5,983 | |||
Accrued expenses
|
78,943 | |||
Total liabilities
|
643,840 | |||
NET ASSETS
|
$ | 258,924,149 | ||
Net Assets consist of:
|
||||
Capital Stock - Authorized 80,000,000 shares, par value $0.01
|
||||
per share
|
$ | 239,959 | ||
Additional paid-in capital
|
249,437,011 | |||
Net unrealized appreciation on investments (note 4)
|
9,344,440 | |||
Accumulated net realized loss on investments
|
(165,978 | ) | ||
Undistributed net investment income
|
68,717 | |||
$ | 258,924,149 | |||
CLASS A
|
||||
Net Assets
|
$ | 143,148,020 | ||
Capital shares outstanding
|
13,266,792 | |||
Net asset value and redemption price per share
|
$ | 10.79 | ||
Maximum offering price per share (100/96 of $10.79)
|
$ | 11.24 | ||
CLASS C
|
||||
Net Assets
|
$ | 22,176,897 | ||
Capital shares outstanding
|
2,055,541 | |||
Net asset value and offering price per share
|
$ | 10.79 | ||
Redemption price per share (*a charge of 1% is imposed on the
|
||||
redemption proceeds, or on the original price, whichever is
|
||||
lower, if redeemed during the first 12 months after purchase)
|
$ | 10.79 | * | |
CLASS I
|
||||
Net Assets
|
$ | 266,552 | ||
Capital shares outstanding
|
24,715 | |||
Net asset value, offering and redemption price per share
|
$ | 10.79 | ||
CLASS Y
|
||||
Net Assets
|
$ | 93,332,680 | ||
Capital shares outstanding
|
8,648,811 | |||
Net asset value, offering and redemption price per share
|
$ | 10.79 |
Nine Months Ended
|
Year Ended
|
|||||||
March 31, 2013†
|
June 30, 2012
|
|||||||
Investment Income:
|
||||||||
Interest income
|
$ | 7,620,922 | $ | 10,241,144 | ||||
|
||||||||
Expenses:
|
||||||||
Management fees (note 3)
|
952,303 | 1,232,675 | ||||||
Distribution and service fees (note 3)
|
328,218 | 460,215 | ||||||
Legal fees
|
165,503 | 115,235 | ||||||
Trustees’ fees and expenses (note 8)
|
92,586 | 118,947 | ||||||
Transfer and shareholder servicing
|
||||||||
agent fees (note 3)
|
84,891 | 117,803 | ||||||
Shareholders’ reports and proxy
|
||||||||
statements
|
34,814 | 43,573 | ||||||
Auditing and tax fees
|
19,100 | 23,500 | ||||||
Custodian fees (note 6)
|
15,115 | 26,765 | ||||||
Fund accounting fees
|
14,839 | 19,781 | ||||||
Insurance
|
8,778 | 10,115 | ||||||
Registration fees and dues
|
7,338 | 17,387 | ||||||
Chief compliance officer services (note 3)
|
4,148 | 4,936 | ||||||
Miscellaneous
|
39,293 | 43,280 | ||||||
Total expenses
|
1,766,926 | 2,234,212 | ||||||
Management fees waived (note 3)
|
(247,598 | ) | (383,096 | ) | ||||
Expenses paid indirectly (note 6)
|
(1,567 | ) | (259 | ) | ||||
Net expenses
|
1,517,761 | 1,850,857 | ||||||
Net investment income
|
6,103,161 | 8,390,287 | ||||||
Realized and Unrealized Gain (Loss) on Investments:
|
||||||||
Net realized gain (loss) from securities
|
||||||||
transactions
|
(86,421 | ) | 238,542 | |||||
Change in unrealized appreciation on
|
||||||||
investments
|
167,096 | 5,891,931 | ||||||
Net realized and unrealized gain (loss) on
|
||||||||
investments
|
80,675 | 6,130,473 | ||||||
Net change in net assets resulting from
|
||||||||
operations
|
$ | 6,183,836 | $ | 14,520,760 |
†
|
Effective December 1, 2012, the Fund changed its fiscal year end from June 30 to March 31. The information presented is for the period July 1, 2012 to March 31, 2013.
|
Nine Months Ended
|
Year Ended
|
Year Ended
|
||||||||||
March 31, 2013†
|
June 30, 2012
|
June 30, 2011
|
||||||||||
OPERATIONS:
|
||||||||||||
Net investment income
|
$ | 6,103,161 | $ | 8,390,287 | $ | 8,926,839 | ||||||
Net realized gain (loss) from
|
||||||||||||
securities transactions
|
(86,421 | ) | 238,542 | 309,501 | ||||||||
Change in unrealized appreciation
|
||||||||||||
on investments
|
167,096 | 5,891,931 | (3,966,060 | ) | ||||||||
Change in net assets from
|
||||||||||||
operations
|
6,183,836 | 14,520,760 | 5,270,280 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS (note 9):
|
||||||||||||
Class A Shares:
|
||||||||||||
Net investment income
|
(3,525,480 | ) | (5,165,290 | ) | (5,691,791 | ) | ||||||
Class C Shares:
|
||||||||||||
Net investment income
|
(387,652 | ) | (606,886 | ) | (738,571 | ) | ||||||
Class I Shares:
|
||||||||||||
Net investment income
|
(6,471 | ) | (9,248 | ) | (9,714 | ) | ||||||
Class Y Shares:
|
||||||||||||
Net investment income
|
(2,170,436 | ) | (2,592,898 | ) | (2,507,629 | ) | ||||||
Change in net assets from
|
||||||||||||
distributions
|
(6,090,039 | ) | (8,374,322 | ) | (8,947,705 | ) | ||||||
CAPITAL SHARE TRANSACTIONS (note 7):
|
||||||||||||
Proceeds from shares sold
|
30,389,104 | 42,222,021 | 59,761,681 | |||||||||
Reinvested dividends and
|
||||||||||||
distributions
|
2,660,956 | 3,521,913 | 4,080,843 | |||||||||
Cost of shares redeemed
|
(23,572,063 | ) | (44,244,636 | ) | (43,872,777 | ) | ||||||
Change in net assets from
|
||||||||||||
capital share transactions
|
9,477,997 | 1,499,298 | 19,969,747 | |||||||||
Change in net assets
|
9,571,794 | 7,645,736 | 16,292,322 | |||||||||
NET ASSETS:
|
||||||||||||
Beginning of period
|
249,352,355 | 241,706,619 | 225,414,297 | |||||||||
End of period*
|
$ | 258,924,149 | $ | 249,352,355 | $ | 241,706,619 | ||||||
*Includes undistributed net
|
||||||||||||
investment income of:
|
$ | 68,717 | $ | 55,589 | $ | 48,055 |
†
|
Effective December 1, 2012, the Fund changed its fiscal year end from June 30 to March 31. The information presented is for the period July 1, 2012 to March 31, 2013.
|
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 a market quotation 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 generally valued at amortized cost iftheir term to maturity at purchase is 60 days or less, or by amortizing their unrealized appreciation or depreciation on the 61st day prior to maturity, if their term to maturity at purchase exceeds 60 days.
|
b)
|
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:
|
Valuation Inputs
|
|
Investments in Securities
|
|||
Level 1 – Quoted Prices
|
$ | — | |||
Level 2 – Other Significant Observable Inputs — Municipal Bonds*
|
252,512,941 | ||||
Level 3 – Significant Unobservable Inputs
|
— | ||||
Total
|
$ | 252,512,941 |
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.
|
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.
|
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.
|
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)
|
Reclassification of capital accounts: Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. On March 31, 2013, the Fund decreased additional paid-in capital by $6 and increased undistributed net investment income by $6. These reclassifications have no effect on net assets or net asset value per share.
|
i)
|
Accounting pronouncement: In January 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01 Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This update gives additional clarification to the FASB ASU No. 2011-11 Disclosures about Offsetting Assets and Liabilities. The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The ASU is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The guidance requires retrospective application for all comparative periods presented. Management expects ASU 2013-01 to have no impact on the financial statement disclosures.
|
Nine Months
Ended |
Year Ended
|
Year Ended
|
||||||||||
March 31, 2013
|
June 30, 2012
|
June 30, 2011
|
||||||||||
SHARES
|
||||||||||||
Class A Shares:
|
||||||||||||
Shares sold
|
998,617 | 1,513,351 | 2,069,666 | |||||||||
Reinvested distributions
|
171,297 | 243,137 | 293,027 | |||||||||
Shares redeemed
|
(1,421,064 | ) | (2,516,350 | ) | (2,261,505 | ) | ||||||
Net change
|
(251,150 | ) | (759,862 | ) | 101,188 | |||||||
Class C Shares:
|
||||||||||||
Shares sold
|
211,834 | 427,311 | 1,073,689 | |||||||||
Reinvested distributions
|
25,240 | 36,465 | 42,990 | |||||||||
Shares redeemed
|
(135,578 | ) | (829,745 | ) | (893,747 | ) | ||||||
Net change
|
101,496 | (365,969 | ) | 222,932 | ||||||||
Class I Shares:
|
||||||||||||
Shares sold
|
– | – | 2 | |||||||||
Reinvested distributions
|
595 | 863 | 920 | |||||||||
Shares redeemed
|
(2,279 | ) | (651 | ) | (697 | ) | ||||||
Net change
|
(1,684 | ) | 212 | 225 | ||||||||
Class Y Shares:
|
||||||||||||
Shares sold
|
1,582,970 | 1,995,072 | 2,464,854 | |||||||||
Reinvested distributions
|
47,488 | 48,102 | 49,482 | |||||||||
Shares redeemed
|
(609,200 | ) | (782,101 | ) | (1,037,059 | ) | ||||||
Net change
|
1,021,258 | 1,261,073 | 1,477,277 | |||||||||
Total transactions in
|
||||||||||||
Fund shares
|
869,920 | 135,454 | 1,801,622 | |||||||||
DOLLARS
|
||||||||||||
Class A Shares:
|
||||||||||||
Proceeds from shares sold
|
$ | 10,873,175 | $ | 16,195,459 | $ | 22,007,849 | ||||||
Reinvested distributions
|
1,863,120 | 2,605,830 | 3,095,077 | |||||||||
Cost of shares redeemed
|
(15,461,948 | ) | (26,960,476 | ) | (23,643,293 | ) | ||||||
Net change
|
(2,725,653 | ) | (8,159,187 | ) | 1,459,633 | |||||||
Class C Shares:
|
||||||||||||
Proceeds from shares sold
|
2,302,611 | 4,569,106 | 11,445,248 | |||||||||
Reinvested distributions
|
274,530 | 390,714 | 453,549 | |||||||||
Cost of shares redeemed
|
(1,471,760 | ) | (8,890,179 | ) | (9,385,248 | ) | ||||||
Net change
|
1,105,381 | (3,930,359 | ) | 2,513,549 | ||||||||
Class I Shares:
|
||||||||||||
Proceeds from shares sold
|
– | – | 20 | |||||||||
Reinvested distributions
|
6,471 | 9,248 | 9,714 | |||||||||
Cost of shares redeemed
|
(24,779 | ) | (6,973 | ) | (7,356 | ) | ||||||
Net change
|
(18,308 | ) | 2,275 | 2,378 | ||||||||
Class Y Shares:
|
||||||||||||
Proceeds from shares sold
|
17,213,318 | 21,457,456 | 26,308,564 | |||||||||
Reinvested distributions
|
516,835 | 516,121 | 522,503 | |||||||||
Cost of shares redeemed
|
(6,613,576 | ) | (8,387,008 | ) | (10,836,880 | ) | ||||||
Net change
|
11,116,577 | 13,586,569 | 15,994,187 | |||||||||
Total transactions in
|
||||||||||||
Fund shares
|
$ | 9,477,997 | $ | 1,499,298 | $ | 19,969,747 |
Nine Months
Ended |
Year Ended June 30,
|
|||||||||||
March 31, 2013
|
2012
|
2011
|
||||||||||
Net tax-exempt income
|
$ | 6,090,039 | $ | 8,366,991 | $ | 8,945,624 | ||||||
Ordinary income
|
– | 7,331 | 2,081 | |||||||||
$ | 6,090,039 | $ | 8,374,322 | $ | 8,947,705 |
Undistributed tax-exempt income
|
$ | 253,621 | ||
Accumulated net realized loss
|
(73,498 | ) | ||
Unrealized appreciation
|
9,413,157 | |||
Other temporary differences
|
(346,101 | ) | ||
$ | 9,247,179 |
Class A | ||||||||||||||||||||||||
Nine Months
|
Year Ended June 30, | |||||||||||||||||||||||
3/31/13 Ended†
|
2012
|
2011 | 2010 |
2009
|
2008
|
|||||||||||||||||||
Net asset value, beginning of period
|
$ | 10.78 | $ | 10.51 | $ | 10.64 | $ | 10.44 | $ | 10.39 | $ | 10.37 | ||||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||||||
Net investment income(1)
|
0.26 | 0.37 | 0.39 | 0.39 | 0.38 | 0.38 | ||||||||||||||||||
Net gain (loss) on securities (both
|
||||||||||||||||||||||||
realized and unrealized)
|
0.02 | 0.27 | (0.13 | ) | 0.20 | 0.06 | 0.03 | |||||||||||||||||
Total from investment operations
|
0.28 | 0.64 | 0.26 | 0.59 | 0.44 | 0.41 | ||||||||||||||||||
Less distributions (note 9):
|
||||||||||||||||||||||||
Dividends from net investment income
|
(0.27 | ) | (0.37 | ) | (0.39 | ) | (0.39 | ) | (0.39 | ) | (0.39 | ) | ||||||||||||
Distributions from capital gains
|
– | – | – | – | – | – | ||||||||||||||||||
Total distributions
|
(0.27 | ) | (0.37 | ) | (0.39 | ) | (0.39 | ) | (0.39 | ) | (0.39 | ) | ||||||||||||
Net asset value, end of period
|
$ | 10.79 | $ | 10.78 | $ | 10.51 | $ | 10.64 | $ | 10.44 | $ | 10.39 | ||||||||||||
Total return (not reflecting sales charge)
|
2.53 | %(2) | 6.15 | % | 2.48 | % | 5.71 | % | 4.30 | % | 4.00 | % | ||||||||||||
Ratios/supplemental data
|
||||||||||||||||||||||||
Net assets, end of period (in millions)
|
$ | 143 | $ | 146 | $ | 150 | $ | 151 | $ | 134 | $ | 105 | ||||||||||||
Ratio of expenses to average net assets
|
0.77 | %(3) | 0.71 | % | 0.62 | % | 0.59 | % | 0.60 | % | 0.64 | % | ||||||||||||
Ratio of net investment income to
|
||||||||||||||||||||||||
average net assets
|
3.22 | %(3) | 3.45 | % | 3.68 | % | 3.63 | % | 3.68 | % | 3.63 | % | ||||||||||||
Portfolio turnover rate
|
8 | %(2) | 11 | % | 9 | % | 3 | % | 6 | % | 3 | % | ||||||||||||
The expense and net investment income ratios without the effect of the contractual expense cap were (note 3):
|
||||||||||||||||||||||||
Ratio of expenses to average net assets
|
0.90 | %(3) | 0.87 | % | 0.84 | % | 0.87 | % | 0.90 | % | 0.97 | % | ||||||||||||
Ratio of net investment income to
|
||||||||||||||||||||||||
average net assets
|
3.09 | %(3) | 3.29 | % | 3.46 | % | 3.35 | % | 3.38 | % | 3.29 | % | ||||||||||||
The expense ratios after giving effect to the contractual expense cap and expense offset for uninvested cash balances were (note 3):
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Ratio of expenses to average net assets
|
0.77 | %(3) | 0.71 | % | 0.62 | % | 0.59 | % | 0.59 | % | 0.63 | % |
(1)
|
Per share amounts have been calculated using the daily average shares method.
|
(2)
|
Not annualized.
|
(3)
|
Annualized.
|
†
|
Effective December 1, 2012, the Fund changed its fiscal year end from June 30 to March 31.The information presented is for the period July 1, 2012 to March 31, 2013.
|
Class C | ||||||||||||||||||||||||
Nine Months
|
Year Ended June 30, | |||||||||||||||||||||||
3/31/13 Ended†
|
2012
|
2011 | 2010 |
2009
|
2008
|
|||||||||||||||||||
Net asset value, beginning of period
|
$ | 10.78 | $ | 10.51 | $ | 10.64 | $ | 10.44 | $ | 10.39 | $ | 10.37 | ||||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||||||
Net investment income(1)
|
0.19 | 0.28 | 0.30 | 0.29 | 0.29 | 0.29 | ||||||||||||||||||
Net gain (loss) on securities (both
|
||||||||||||||||||||||||
realized and unrealized)
|
0.02 | 0.27 | (0.13 | ) | 0.21 | 0.06 | 0.03 | |||||||||||||||||
Total from investment operations
|
0.21 | 0.55 | 0.17 | 0.50 | 0.35 | 0.32 | ||||||||||||||||||
Less distributions (note 9):
|
||||||||||||||||||||||||
Dividends from net investment income
|
(0.20 | ) | (0.28 | ) | (0.30 | ) | (0.30 | ) | (0.30 | ) | (0.30 | ) | ||||||||||||
Distributions from capital gains
|
– | – | – | – | – | – | ||||||||||||||||||
Total distributions
|
(0.20 | ) | (0.28 | ) | (0.30 | ) | (0.30 | ) | (0.30 | ) | (0.30 | ) | ||||||||||||
Net asset value, end of period
|
$ | 10.79 | $ | 10.78 | $ | 10.51 | $ | 10.64 | $ | 10.44 | $ | 10.39 | ||||||||||||
Total return (not reflecting sales charge)
|
1.88 | %(2) | 5.25 | % | 1.62 | % | 4.81 | % | 3.42 | % | 3.12 | % | ||||||||||||
Ratios/supplemental data
|
||||||||||||||||||||||||
Net assets, end of period (in millions)
|
$ | 22 | $ | 21 | $ | 24 | $ | 22 | $ | 12 | $ | 11 | ||||||||||||
Ratio of expenses to average net assets
|
1.62 | %(3) | 1.57 | % | 1.47 | % | 1.44 | % | 1.45 | % | 1.51 | % | ||||||||||||
Ratio of net investment income to
|
||||||||||||||||||||||||
average net assets
|
2.37 | %(3) | 2.60 | % | 2.83 | % | 2.75 | % | 2.82 | % | 2.76 | % | ||||||||||||
Portfolio turnover rate
|
8 | %(2) | 11 | % | 9 | % | 3 | % | 6 | % | 3 | % | ||||||||||||
The expense and net investment income ratios without the effect of the contractual expense cap were (note 3):
|
||||||||||||||||||||||||
Ratio of expenses to average net assets
|
1.75 | %(3) | 1.72 | % | 1.69 | % | 1.72 | % | 1.75 | % | 1.82 | % | ||||||||||||
Ratio of net investment income to
|
||||||||||||||||||||||||
average net assets
|
2.24 | %(3) | 2.45 | % | 2.61 | % | 2.47 | % | 2.52 | % | 2.45 | % | ||||||||||||
The expense ratios after giving effect to the contractual expense cap and expense offset for uninvested cash balances were (note 3):
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Ratio of expenses to average net assets
|
1.62 | %(3) | 1.57 | % | 1.47 | % | 1.44 | % | 1.44 | % | 1.48 | % |
(1)
|
Per share amounts have been calculated using the daily average shares method.
|
(2)
|
Not annualized.
|
(3)
|
Annualized.
|
†
|
Effective December 1, 2012, the Fund changed its fiscal year end from June 30 to March 31.The information presented is for the period July 1, 2012 to March 31, 2013.
|
Class I | ||||||||||||||||||||||||
Nine Months
|
Year Ended June 30, | |||||||||||||||||||||||
3/31/13 Ended†
|
2012
|
2011 | 2010 |
2009
|
2008
|
|||||||||||||||||||
Net asset value, beginning of period
|
$ | 10.78 | $ | 10.51 | $ | 10.63 | $ | 10.44 | $ | 10.39 | $ | 10.37 | ||||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||||||
Net investment income(1)
|
0.25 | 0.35 | 0.37 | 0.37 | 0.37 | 0.37 | ||||||||||||||||||
Net gain (loss) on securities (both
|
||||||||||||||||||||||||
realized and unrealized)
|
0.01 | 0.27 | (0.12 | ) | 0.19 | 0.06 | 0.03 | |||||||||||||||||
Total from investment operations
|
0.26 | 0.62 | 0.25 | 0.56 | 0.43 | 0.40 | ||||||||||||||||||
Less distributions (note 9):
|
||||||||||||||||||||||||
Dividends from net investment income
|
(0.25 | ) | (0.35 | ) | (0.37 | ) | (0.37 | ) | (0.38 | ) | (0.38 | ) | ||||||||||||
Distributions from capital gains
|
– | – | – | – | – | – | ||||||||||||||||||
Total distributions
|
(0.25 | ) | (0.35 | ) | (0.37 | ) | (0.37 | ) | (0.38 | ) | (0.38 | ) | ||||||||||||
Net asset value, end of period
|
$ | 10.79 | $ | 10.78 | $ | 10.51 | $ | 10.63 | $ | 10.44 | $ | 10.39 | ||||||||||||
Total return (not reflecting sales charge)
|
2.41 | %(2) | 5.99 | % | 2.42 | % | 5.45 | % | 4.17 | % | 3.84 | % | ||||||||||||
Ratios/supplemental data
|
||||||||||||||||||||||||
Net assets, end of period (in millions)
|
$ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.5 | ||||||||||||
Ratio of expenses to average net assets
|
0.93 | %(3) | 0.87 | % | 0.78 | % | 0.74 | % | 0.74 | % | 0.81 | % | ||||||||||||
Ratio of net investment income to
|
||||||||||||||||||||||||
average net assets
|
3.07 | %(3) | 3.29 | % | 3.25 | % | 3.49 | % | 3.54 | % | 3.47 | % | ||||||||||||
Portfolio turnover rate
|
8 | %(2) | 11 | % | 9 | % | 3 | % | 6 | % | 3 | % | ||||||||||||
The expense and net investment income ratios without the effect of the contractual expense cap were (note 3):
|
||||||||||||||||||||||||
Ratio of expenses to average net assets
|
1.06 | %(3) | 1.02 | % | 1.00 | % | 1.02 | % | 1.04 | % | 1.12 | % | ||||||||||||
Ratio of net investment income to
|
||||||||||||||||||||||||
average net assets
|
2.94 | %(3) | 3.14 | % | 3.30 | % | 3.20 | % | 3.24 | % | 3.16 | % | ||||||||||||
The expense ratios after giving effect to the contractual expense cap and expense offset for uninvested cash balances were (note 3):
|
||||||||||||||||||||||||
Ratio of expenses to average net assets
|
0.93 | %(3) | 0.87 | % | 0.78 | % | 0.74 | % | 0.73 | % | 0.77 | % |
(1)
|
Per share amounts have been calculated using the daily average shares method.
|
(2)
|
Not annualized.
|
(3)
|
Annualized.
|
†
|
Effective December 1, 2012, the Fund changed its fiscal year end from June 30 to March 31.The information presented is for the period July 1, 2012 to March 31, 2013.
|
Class Y | ||||||||||||||||||||||||
Nine Months
|
Year Ended June 30, | |||||||||||||||||||||||
3/31/13 Ended†
|
2012
|
2011 | 2010 |
2009
|
2008
|
|||||||||||||||||||
Net asset value, beginning of period
|
$ | 10.78 | $ | 10.51 | $ | 10.64 | $ | 10.44 | $ | 10.39 | $ | 10.37 | ||||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||||||
Net investment income(1)
|
0.28 | 0.38 | 0.40 | 0.40 | 0.40 | 0.40 | ||||||||||||||||||
Net gain (loss) on securities (both
|
||||||||||||||||||||||||
realized and unrealized)
|
– | 0.27 | (0.13 | ) | 0.20 | 0.05 | 0.03 | |||||||||||||||||
Total from investment operations
|
0.28 | 0.65 | 0.27 | 0.60 | 0.45 | 0.43 | ||||||||||||||||||
Less distributions (note 9):
|
||||||||||||||||||||||||
Dividends from net investment income
|
(0.27 | ) | (0.38 | ) | (0.40 | ) | (0.40 | ) | (0.40 | ) | (0.41 | ) | ||||||||||||
Distributions from capital gains
|
– | – | – | – | – | – | ||||||||||||||||||
Total distributions
|
(0.27 | ) | (0.38 | ) | (0.40 | ) | (0.40 | ) | (0.40 | ) | (0.41 | ) | ||||||||||||
Net asset value, end of period
|
$ | 10.79 | $ | 10.78 | $ | 10.51 | $ | 10.64 | $ | 10.44 | $ | 10.39 | ||||||||||||
Total return (not reflecting sales charge)
|
2.65 | %(2) | 6.31 | % | 2.64 | % | 5.86 | % | 4.46 | % | 4.16 | % | ||||||||||||
Ratios/supplemental data
|
||||||||||||||||||||||||
Net assets, end of period (in millions)
|
$ | 93 | $ | 82 | $ | 67 | $ | 52 | $ | 50 | $ | 45 | ||||||||||||
Ratio of expenses to average net assets
|
0.62 | %(3) | 0.57 | % | 0.47 | % | 0.44 | % | 0.45 | % | 0.51 | % | ||||||||||||
Ratio of net investment income to
|
||||||||||||||||||||||||
average net assets
|
3.37 | %(3) | 3.59 | % | 3.83 | % | 3.78 | % | 3.83 | % | 3.75 | % | ||||||||||||
Portfolio turnover rate
|
8 | %(2) | 11 | % | 9 | % | 3 | % | 6 | % | 3 | % | ||||||||||||
The expense and net investment income ratios without the effect of the contractual expense cap were (note 3):
|
||||||||||||||||||||||||
Ratio of expenses to average net assets
|
0.75 | %(3) | 0.72 | % | 0.69 | % | 0.72 | % | 0.75 | % | 0.82 | % | ||||||||||||
Ratio of net investment income to
|
||||||||||||||||||||||||
average net assets
|
3.24 | %(3) | 3.43 | % | 3.61 | % | 3.49 | % | 3.53 | % | 3.44 | % | ||||||||||||
The expense ratios after giving effect to the contractual expense cap and expense offset for uninvested cash balances were (note 3):
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Ratio of expenses to average net assets
|
0.62 | %(3) | 0.57 | % | 0.47 | % | 0.44 | % | 0.44 | % | 0.47 | % |
(1)
|
Per share amounts have been calculated using the daily average shares method.
|
(2)
|
Not annualized.
|
(3)
|
Annualized.
|
†
|
Effective December 1, 2012, the Fund changed its fiscal year end from June 30 to March 31.The information presented is for the period July 1, 2012 to March 31, 2013.
|
Number of
|
||||||||
Positions
|
Portfolios
|
|||||||
Held with
|
in Fund
|
|||||||
Name,
|
Fund and
|
Principal
|
Complex(4)
|
Other Directorships
|
||||
Address(2)
|
Length of
|
Occupation(s)
|
Overseen
|
Held by Trustee
|
||||
and Year of Birth
|
Service(3)
|
During Past 5 Years
|
by Trustee
|
During Past 5 Years
|
Interested Trustees(5)
|
||||||||
Diana P. Herrmann
New York, NY
(1958)
|
Trustee since 2005 and President since 1998
|
Vice Chair and Chief Executive Officer of Aquila Management Corporation, Founder and Sponsor 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 1997; Governor, Investment Company Institute (the U.S. mutual fund industry trade organization 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.
|
11 |
ICI Mutual Insurance Company, a Risk Retention Group (2006-2009 and since 2010); Vice Chair and Trustee of Pacific Capital Funds of Cash Assets Trust (three Aquila money-market funds) 2004-2012
|
||||
John J. Partridge
Providence, RI
(1940)
|
Trustee since 2008
|
Founding Partner, Partridge Snow & Hahn LLP, a law firm, Providence, Rhode Island, since 1988, Senior Counsel, since January 1, 2007; Assistant Secretary –Advisor to the Board, Aquila Narragansett Tax-Free Income Fund, 2005-2008, Trustee 2002-2005; director or trustee of various educational, civic and charitable organizations, including Ocean State Charities Trust, Memorial Hospital of Rhode Island, and The Pawtucket Foundation.
|
5 | None |
Number of
|
||||||||
Positions
|
Portfolios
|
|||||||
Held with
|
in Fund
|
|||||||
Name,
|
Fund and
|
Principal
|
Complex(4)
|
Other Directorships
|
||||
Address(2)
|
Length of
|
Occupation(s)
|
Overseen
|
Held by Trustee
|
||||
and Year of Birth
|
Service(3)
|
During Past 5 Years
|
by Trustee
|
During Past 5 Years
|
||||
Non-interested Trustees
|
||||||||
David A. Duffy
North Kingstown, RI
(1939)
|
Chair of the Board since 2009 and Trustee since 1995
|
Retired Founder and Chairman of Duffy & Shanley, Inc., a marketing communications firm, 1973-2003; past Chairman of the Rhode Island Convention Center Authority, 2003-2011; past National Chairman, National Conference for Community & Justice (NCCJ); past Vice Chair, Providence College Board of Trustees; officer or director of numerous civic and non-profit organizations including Rhode Island Hospital.
|
2 |
Delta Dental of Rhode Island
|
||||
Thomas A. Christopher
Danville, KY
(1947)
|
Trustee since 2009
|
Senior partner of Robinson, Hughes & Christopher, C.P.A.s, P.S.C., since 1977; Chairman of the Board, A Good Place for Fun, Inc., a sports facility, since 1987 President, 1987-2012; Director, Sunrise Children’s Services Inc., since 2010; Director, Global Outreach International, since 2011; currently or formerly active with various professional and community organizations.
|
5 | None | ||||
Anne J. Mills
Scottsdale, AZ
(1938)
|
Trustee since 2009
|
President, Loring Consulting Company since 2001; Vice President for Business Management and CFO, Ottawa University, 1992-2001, 2006-2009; IBM Corporation, 1965-1991; currently active with various charitable, educational and religious organizations.
|
5 | None |
Number of
|
||||||||
Positions
|
Portfolios
|
|||||||
Held with
|
in Fund
|
|||||||
Name,
|
Fund and
|
Principal
|
Complex(4)
|
Other Directorships
|
||||
Address(2)
|
Length of
|
Occupation(s)
|
Overseen
|
Held by Trustee
|
||||
and Year of Birth
|
Service(3)
|
During Past 5 Years
|
by Trustee
|
During Past 5 Years
|
||||
James R. Ramsey
Louisville, KY
(1948)
|
Trustee since 2004
|
President, University of Louisville since November 2002; Professor of Economics, University of Louisville, 1999-present; Kentucky Governor’s Senior Policy Advisor and State Budget Director, 1999-2002; Vice Chancellor for Finance and Administration, the University of North Carolina at Chapel Hill, 1998 to 1999; previously Vice President for Finance and Administration at Western Kentucky University, State Budget Director for the Commonwealth of Kentucky, Chief State Economist and Executive Director for the Office of Financial Management and Economic Analysis for the Commonwealth of Kentucky, Adjunct Professor at the University of Kentucky, Associate Professor at Loyola University-New Orleans and Assistant Professor at Middle Tennessee State University.
|
2 |
Community Bank and Trust, Pikeville, KY and Texas Roadhouse Inc.
|
||||
Laureen L. White
North Kingstown, RI
(1959)
|
Trustee since 2005
|
President, Greater Providence Chamber of Commerce, since 2005, Executive Vice President 2004-2005 and Senior Vice President, 1989-2002; Executive Counselor to the Governor of Rhode Island for Policy and Communications, 2003-2004.
|
2 | None |
Positions
|
||||
Held with
|
||||
Name,
|
Fund and
|
|||
Address(2)
|
Length of
|
|||
and Year of Birth
|
Service(3)
|
Principal Occupation(s) During Past 5 Years
|
||
Trustees Emeritus(7)
|
||||
Vernon R. Alden
Boston, MA
(1923)
|
Trustee Emeritus since 2006
|
Retired; former director or trustee of various Fortune 500 companies, including Colgate-Palmolive and McGraw Hill; formerly President of Ohio University and Associate Dean of the Harvard University Graduate School of Business Administration; Trustee, Aquila Narragansett Tax-Free Income Fund, 1992-2006, Tax-Free Trust of Oregon, 1988-2001, Hawaiian Tax-Free Trust, 1989-2001, and Pacific Capital Funds of Cash Assets Trust (three Aquila money-market funds, consisting of Pacific Capital Cash Assets Trust, Pacific Capital Tax-Free Cash Assets Trust and Pacific Capital U.S. Government Securities Cash Assets Trust), 1989-2001; Trustee Emeritus, Aquila Narragansett Tax-Free Income Fund and Tax-Free Trust of Oregon since 2006; member of several Japan-related advisory councils, including Chairman of the Japan Society of Boston; trustee of various cultural, educational and civic organizations.
|
||
Theodore T. Mason
Hastings-on-Hudson, NY
(1935)
|
Trustee Emeritus since 2011; Trustee 2009-2011
|
Executive Director, East Wind Power Partners LTD since 1994 and Louisiana Power Partners, 1999-2003; Assistant Treasurer, Fort Schuyler Maritime Alumni Association, Inc., successor to Alumni Association of SUNY Maritime College, since 2010 (Treasurer, 2004-2009, President, 2002-2003, First Vice President, 2000-2001, Second Vice President, 1998-2000) and director of the same organization since 1997; Director, STCM Management Company, Inc., 1973-2004; twice national officer of Association of the United States Navy (formerly Naval Reserve Association), Commanding Officer of four naval reserve units and Captain, USNR (Ret); Vice President and director, The Navy League of the United States New York Council since 2012 and director since 2002; trustee, The Maritime Industry Museum at Fort Schuyler, 2000-2004; and Fort Schuyler Maritime Foundation, Inc., successor to the Maritime College at Fort Schuyler Foundation, Inc., since 2000; Trustee, Hawaiian Tax-Free Trust since 1984 and Chair since 2004; Trustee Aquila Three Peaks High Income Fund since 2006; Trustee Emeritus, Churchill Tax-Free Fund of Kentucky and Narragansett Insured Tax-Free Income Fund since 2011; Trustee, 1987-2011 and 2009-2011, respectively; Trustee of Pacific Capital Funds of Cash Assets Trust (three Aquila money-market funds, consisting of Pacific Capital Cash Assets Trust (1984-2012), Pacific Capital Tax-Free Cash Assets Trust (1988-2012), and Pacific Capital U.S. Government Securities Cash Assets Trust (1988-2012)) and Chair of the Board of each, 2004-2012.
|
||
William J. Nightingale
Rowayton, CT
(1929)
|
Trustee Emeritus since 2009
|
Retired; formerly Chairman, founder (1975) and Senior Advisor until 2000 of Nightingale & Associates, L.L.C., a general management consulting firm focusing on interim management, divestitures, turnaround of troubled companies, corporate restructuring and financial advisory services; Trustee of Churchill Tax-Free Fund of Kentucky,1993-2007; Trustee of Aquila Narragansett Tax-Free Income Fund, 1992-2009, and Chair of the Board, 2005-2009.
|
Positions
|
||||
Held with
|
||||
Name,
|
Fund and
|
|||
Address(2)
|
Length of
|
|||
and Year of Birth
|
Service(3)
|
Principal Occupation(s) During Past 5 Years
|
||
Officers
|
||||
Charles E.Childs, III
New York, NY
(1957)
|
Executive Vice President since 2003 and Secretary since 2011
|
Executive Vice President of all funds in the Aquila Group of Funds and the Manager and the Manager’s parent since 2003; Chief Operating Officer of the Manager and the Manager’s parent since 2008; Secretary of all funds in the Aquila Group of Funds since 2011; formerly Senior Vice President, corporate development, Vice President, Assistant Vice President and Associate of the Manager’s parent since 1987; Executive Vice President, Senior Vice President, Vice President or Assistant Vice President of the Aquila money-market funds, 1988-2012; Director of the Distributor since 2012.
|
||
Marie E. Aro
Denver, CO
(1955)
|
Senior Vice President since 2010
|
Co-President of the Distributor since 2010, Vice President, 1993-1997; Senior Vice President, Aquila Three Peaks Opportunity Growth 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, Churchill Tax-Free Fund of Kentucky, Hawaiian Tax-Free Trust, Aquila Narragansett Tax-Free Income Fund, Tax-Free Fund For Utah, Tax-Free Fund of Colorado and Tax-Free Trust of Oregon since 2010; Vice President, INVESCO Funds Group, 1998-2003.
|
||
Stephen J. Caridi
New York, NY
(1961)
|
Senior Vice President since 1998
|
Vice President of the Distributor since 1995; Vice President, Hawaiian Tax-Free Trust since 1998; Senior Vice President, Narragansett Insured Tax-Free Income Fund since 1998, Vice President 1996-1997; Senior Vice President, Tax-Free Fund of Colorado 2004-2009; Vice President, Aquila Three Peaks Opportunity Growth Fund since 2006.
|
||
Paul G. O’Brien
Charlotte, NC
(1959)
|
Senior Vice President since 2010
|
Co-President, Aquila Distributors, Inc. since 2010, Managing Director, 2009-2010; Senior Vice President of Aquila Three Peaks High Income Fund, Aquila Three Peaks Opportunity Growth Fund, and each of the Aquila Municipal Bond Funds since 2010; 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.
|
||
Randall S. Fillmore
New York, NY
(1960)
|
Chief Compliance Officer since 2012
|
Chief Compliance Officer of each fund in the Aquila Group of Funds, the Manager and the Distributor since 2012; Managing Director, Fillmore & Associates, 2009-2012; Fund and Adviser Chief Compliance Officer (2002-2009), Senior Vice President - Broker Dealer Compliance (2004-2009), Schwab Funds Anti Money Laundering Officer and Identity Theft Prevention Officer (2004-2009), Vice President - Internal Audit (2000-2002), Charles Schwab Corporation; National Director, Information Systems Risk Management - Consulting Services (1999-2000), National Director, Investment Management Audit and Business Advisory Services (1992-1999), Senior Manager, Manager, Senior and Staff Roles (1983-1992), PricewaterhouseCoopers LLP.
|
Positions
|
||||
Held with
|
||||
Name,
|
Fund and
|
|||
Address(2)
|
Length of
|
|||
and Year of Birth
|
Service(3)
|
Principal Occupation(s) During Past 5 Years
|
||
Joseph P. DiMaggio
New York, NY
(1956)
|
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.
|
||
Yolonda S. Reynolds
New York, NY
(1960)
|
Assistant Treasurer since 2010
|
Assistant Treasurer of each fund in the Aquila Group of Funds since 2010; Director of Fund Accounting for the Aquila Group of Funds since 2007; Investment Accountant, TIAA-CREF, 2007; Senior Fund Accountant, JP Morgan Chase, 2003-2006.
|
||
Lori A. Vindigni
New York, NY
(1966)
|
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.
|
Actual
|
||||
Total Return
|
Beginning
|
Ending
|
Expenses
|
|
Without
|
Account
|
Account
|
Paid During
|
|
Sales Charges(1)
|
Value
|
Value
|
the Period(2)
|
|
Class A
|
0.68%
|
$1,000.00
|
$1,006.80
|
$3.95
|
Class C
|
0.25%
|
$1,000.00
|
$1,002.50
|
$8.19
|
Class I
|
0.60%
|
$1,000.00
|
$1,006.00
|
$4.75
|
Class Y
|
0.75%
|
$1,000.00
|
$1,007.50
|
$3.20
|
(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 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 0.79%, 1.64%, 0.95% and 0.64% for the Fund’s Class A, C, I and Y shares, respectively, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
|
Hypothetical
|
||||
Annualized
|
Beginning
|
Ending
|
Expenses
|
|
Total
|
Account
|
Account
|
Paid During
|
|
Return
|
Value
|
Value
|
the Period(1)
|
|
Class A
|
5.00%
|
$1,000.00
|
$1,020.99
|
$3.97
|
Class C
|
5.00%
|
$1,000.00
|
$1,016.75
|
$8.25
|
Class I
|
5.00%
|
$1,000.00
|
$1,020.19
|
$4.77
|
Class Y
|
5.00%
|
$1,000.00
|
$1,021.74
|
$3.22
|
(1)
|
Expenses are equal to the annualized expense ratio of 0.79%, 1.64%, 0.95% and 0.64% for the Trust’s Class A, C, I and Y shares, respectively, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
|
ITEM 2.
|
CODE OF ETHICS.
|
ITEM 3.
|
AUDIT COMMITTEE FINANCIAL EXPERT.
|
ITEM 4.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES.
|
ITEM 5.
|
AUDIT COMMITTEE OF LISTED REGISTRANTS.
|
ITEM 6.
|
SCHEDULE OF INVESTMENTS.
|
ITEM 7.
|
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
ITEM 8.
|
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
ITEM 9.
|
PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENTCOMPANY AND AFFILIATED PURCHASERS.
|
ITEM 10.
|
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
|
ITEM 11.
|
CONTROLS AND PROCEDURES.
|
ITEM 12.
|
EXHIBITS.
|
By:
|
/s/ Diana P. Herrmann | |
President and Trustee
June 3, 2013
|
||
By:
|
/s/ Joseph P. DiMaggio | |
Chief Financial Officer and Treasurer
June 3, 2013
|
By:
|
/s/ Diana P. Herrmann | |
Diana P. Herrmann
President and Trustee
June 3, 2013
|
||
By:
|
/s/ Joseph P. DiMaggio | |
Joseph P. DiMaggio
Chief Financial Officer and Treasurer
June 3, 2013
|
1.
|
I have reviewed this report on Form N-CSR of Aquila Narragansett Tax-Free Income Fund (formerly, Narragansett Insured Tax-Free Income Fund);
|
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.
|
/s/ Diana P. Herrmann | |
Title: President and Trustee
|
1.
|
I have reviewed this report on Form N-CSR of Aquila Narragansett Tax-Free Income Fund (formerly, Narragansett Insured Tax-Free Income Fund);
|
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.
|
/s/ Joseph P. DiMaggio | |
Title: Chief Financial Officer and Treasurer
|
Dated: June 3, 2013
|
|
/s/ Diana P. Herrmann | |
President and Trustee
Aquila Narragansett Tax-Free Income Fund (formerly, Narragansett Insured Tax-Free Income Fund)
|
|||
Dated: June 3, 2013
|
|
/s/ Joseph P. DiMaggio | |
Chief Financial Officer and Treasurer
Aquila Narragansett Tax-Free Income Fund (formerly, Narragansett Insured Tax-Free Income Fund)
|
Chair, Vice Chair and/or Trustee and/or President
|
Diana P. Herrmann
|
Chief Financial Officer and Treasurer
|
Joseph P. DiMaggio
|
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