Aquila Three Peaks High Income Fund - Frequently Asked Questions

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Aquila Three Peaks Opportunity Growth Fund

Aquila Three Peaks High Income Fund

Prospectus/Reports/More Forms Articles/Announcements

Class A Shares Class C Shares Class I Shares Class Y Shares

Frequently Asked Questions

What size investment can be made in the Fund?

Who manages the Fund's portfolio?

Who maintains the Fund's portfolio securities?

How often does the Fund pay capital gains and dividends?

What's the difference between an SEC yield and a distribution yield?

How can I keep track of my investment in the Fund?

How liquid is my investment in the Fund?

How can I invest in the Fund?

Where can I find information regarding Cost Basis Reporting?

How can I get answers to any other questions I might have?

What size investment can be made in the Fund ?
The Fund is specifically designed for all size investments. The minimum initial investment in the Fund is $1,000. You may also open an account by establishing an Automatic Investment Program which permits purchases of $50 or more each month. You may make any size investment you wish above the initial minimum amount. Just as important, any subsequent investment you make may be of any amount - there is no minimum. Class I and Class Y shares are available to investors only through a professional financial advisor or a financial institution. Please see the prospectus for details.

Who manages the Fund's portfolio?
THREE PEAKS CAPITAL MANAGEMENT, LLC is the Fund's Investment Sub-Adviser, providing the Fund with experienced professional management. Three Peaks Capital Management, LLC was established in July, 2003 and is 100% employee-owned.

Who maintains the Fund's portfolio securities?
All securities owned by the Fund are kept in a separately segregated custody account at JPMorgan Chase, which maintains custody of $14.4 trillion of clients' assets.

How often does the Fund pay capital gains and dividends?
Dividends are declared daily and paid monthly. Unless you specifically request otherwise, your dividends and distributions will be reinvested automatically for you in full and fractional shares of the Fund at the then current Net Asset Value per share, without any sales charge. You can, of course, if you wish, have any or all of the dividends or distributions paid to you by check each month, or electronically transferred to your personal bank account. Alternatively, you may direct all of your distributions to another one of your existing accounts in the Aquila Group of Funds.

What's the difference between an SEC yield and a distribution yield?
Prior to 1988, when the Securities and Exchange Commission imposed standards for the way yields must be calculated, performance figures were calculated using many different methods. The SEC implemented the standardized yield formula, which a fund must use when advertising its yield, to enable investors to compare funds on an "apples to apples" basis.

The SEC formula annualizes a fund's yield based on a 30-day trailing period of time. It reflects a current picture of the yield based on the current interest rate environment and takes into account a bond's yield to maturity.

The distribution yield reflects the fund dividend distributions relative to the fund price per share/ The total of the per share dividend payments for a 30-day period of time is then annualized.

How can I keep track of my investment in the Fund ?
Click here to obtain the Fund's current Net Asset Value. Additionally, you will receive a statement at the end of each month from the Fund's Shareholder Servicing Agent as to the status of your account. Further, any time you put money into or take money out of your account, a statement will be sent to you. At year end, you will receive a summary statement. In addition, an audited report on the Fund is sent to you annually, as well as an unaudited semi-annual report.

For your further convenience, if your shares are kept with the Fund, you may click here or call the Fund's Shareholder Servicing Agent, toll-free at 1-800-437-1000, on any business day to get an update of your account.

How liquid is my investment in the Fund?
While you have ready liquidity, you should consider the Fund as a long-term investment. You may redeem all or part of your investment on any business day at the next-determined Net Asset Value of the Fund's shares after acceptance of your redemption request. You should be aware that investment returns and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The prospectus outlines a number of different ways you may redeem your shares. There are no redemption fees or withdrawal penalties on regular Class A Shares held for more than 90 days. A 1% contingent deferred sales charge (CDSC) applies to Class C Shares redeemed within the first 12 months of purchase.

How can I invest in the Fund ?
You may do so easily through your local financial professional at the public offering price as described in the Prospectus. You may invest in Class A or Class C shares by completing the Fund's application. Class I and Class Y are available to investors only through a professional financial advisor or a financial institution. Please see the prospectus for details. The Prospectus, provided free by your financial professional, contains complete details about the Fund. You should read it carefully before you invest. There is a sales charge, maximum of 4.00%, included in the offering price of Class A Shares. Class C Shares do not have a sales charge, but do have a contingent deferred sales charge (CDSC) of 1% if a redemption occurs within the first 12 months of purchase.

Where can I find information regarding Cost Basis Reporting?

Click here for a summary description of the cost basis reporting requirements, the cost basis reporting methods available for your account with Aquila Group of Funds, the Cost Basis Election Form, and answers to frequent questions regarding cost basis reporting.

How can I get answers to any other questions I might have?
Your local financial professional should be able to help you with any questions you have. Or, you may call the Fund, toll-free at 1-800-437-1020 or contact us by e-mail.