0000888955-13-000008.txt : 20130425 0000888955-13-000008.hdr.sgml : 20130425 20130425070054 ACCESSION NUMBER: 0000888955-13-000008 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20130425 DATE AS OF CHANGE: 20130425 EFFECTIVENESS DATE: 20130425 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AQUILA NARRAGANSETT TAX-FREE INCOME FUND CENTRAL INDEX KEY: 0000888955 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-48696 FILM NUMBER: 13780821 BUSINESS ADDRESS: STREET 1: 380 MADISON AVE STREET 2: STE 2300 CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2126976666 MAIL ADDRESS: STREET 1: 380 MADISON AVENUE STREET 2: SUITE 2300 CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: NARRAGANSETT INSURED TAX-FREE INCOME FUND DATE OF NAME CHANGE: 20060126 FORMER COMPANY: FORMER CONFORMED NAME: NARRAGANSETT INSURED TAX FREE INCOME FUND DATE OF NAME CHANGE: 20060126 FORMER COMPANY: FORMER CONFORMED NAME: NARRAGANSETT INSURED TAX -FREE INCOME FUND DATE OF NAME CHANGE: 20060126 0000888955 S000009135 AQUILA NARRAGANSETT TAX-FREE INCOME FUND C000024845 AQUILA NARRAGANSETT TAX-FREE INCOME FUND CLASS A NITFX C000024846 AQUILA NARRAGANSETT TAX-FREE INCOME FUND CLASS C NITCX C000024847 AQUILA NARRAGANSETT TAX-FREE INCOME FUND CLASS I NITIX C000024848 AQUILA NARRAGANSETT TAX-FREE INCOME FUND CLASS Y NITYX 497 1 ni12st1.htm SUPPLEMENT TO THE PROSPECTUS AND SAI ni12st1.htm
Aquila Narragansett Tax-Free Income Fund
  
Supplement dated April 25, 2013
to the Summary Prospectus, Prospectus and Statement of Additional Information
dated October 25, 2012

At a special meeting to be held on July 24, 2013, shareholders of the Fund will be asked to approve the reorganization of the Fund into a newly-organized series of Aquila Municipal Trust (the “Successor Fund”).  The Board of Trustees of the Fund unanimously approved the reorganization on March 2, 2013.  If the reorganization is approved by the shareholders of the Fund, it is expected to close as soon as possible after July 24, 2013.

The reorganization is expected to achieve certain efficiencies in the administration and oversight of the Fund by, among other things, reducing the number of separate legal entities in the Aquila Group of Funds.  In addition, the Fund would operate under updated fundamental investment policies that are intended to simplify compliance monitoring and provide additional flexibility for the Fund.

There will be no changes to the Fund’s investment objective, principal investment strategies or investment management teams as a result of the proposed reorganization.  Aquila Investment Management LLC will continue to serve as the Manager of the Successor Fund following the reorganization.  Citizens Investment Advisors, a department of RBS Citizens, N.A., will continue to serve as the Sub-Adviser of the Successor Fund following the reorganization.

The proposed reorganization is expected to qualify as a tax-free reorganization, which generally means that the reorganization will result in no gain or loss being recognized for federal income tax purposes by the Fund or its shareholders as a direct result of the reorganization.

It is expected that proxy materials with respect to the proposed reorganization will be sent to shareholders of the Fund in May 2013. Please read the proxy materials carefully, as they contain a more detailed description of the proposed reorganization.