AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

SCHEDULE OF INVESTMENTS

December 31, 2020

(unaudited)

 

Principal
Amount
  General Obligation Bonds (3.6%)   Ratings Moody's, S&P and Fitch   Value   (a)
    Lexington-Fayette Urban County, Kentucky            
$ 3,600,000   4.000%, 09/01/29   Aa2/AA/NR   $ 4,046,148    
                 
    Rowan County, Kentucky            
835,000   4.000%, 06/01/30 AGMC Insured   A1/AA/NR   954,714    
865,000   4.000%, 06/01/31 AGMC Insured   A1/AA/NR   985,979    
                 
    Warren County, Kentucky            
695,000   1.750%, 12/01/35 Series 2020   Aa1/NR/NR   697,064    
    Total General Obligation Bonds       6,683,905    
                 
    Revenue Bonds (87.1%)            
    State Agency (26.7%)            
    Kentucky Asset & Liability Commission Federal Highway Notes            
1,000,000   5.000%, 09/01/22 Series A   A2/AA/A+   1,001,350    
2,000,000   5.250%, 09/01/25 Series A   A2/AA/A+   2,213,120    
2,000,000   5.000%, 09/01/26 Series A   A2/AA/A+   2,333,340    
1,000,000   5.000%, 09/01/27 Series A   A2/AA/A+   1,200,000    
                 
    Kentucky Rural Water Finance Corp.            
200,000   4.375%, 08/01/22 NPFG Insured   Baa2/A+/NR   200,474    
240,000   4.500%, 08/01/23 NPFG Insured   Baa2/A+/NR   240,581    
255,000   4.500%, 08/01/24 NPFG Insured   Baa2/A+/NR   255,615    
290,000   4.500%, 08/01/27 NPFG Insured   Baa2/A+/NR   290,664    
245,000   4.600%, 08/01/28 NPFG Insured   Baa2/A+/NR   245,568    
315,000   4.625%, 08/01/29 NPFG Insured   Baa2/A+/NR   315,725    
375,000   4.000%, 02/01/28 Series 2012C   NR/A+/NR   375,926    
305,000   4.000%, 02/01/29 Series 2012C   NR/A+/NR   305,729    
435,000   4.000%, 02/01/26 Series 2012F   NR/A+/NR   451,656    
450,000   4.000%, 02/01/27 Series 2012F   NR/A+/NR   466,826    
465,000   4.000%, 02/01/28 Series 2012F   NR/A+/NR   481,926    
490,000   4.000%, 02/01/29 Series 2012F   NR/A+/NR   507,243    
265,000   2.000%, 02/01/35 Series 2020I   NR/A+/NR   270,093    
475,000   2.000%, 02/01/36 Series 2020I   NR/A+/NR   481,926    
280,000   2.000%, 02/01/37 Series 2020I   NR/A+/NR   283,018    
                 
    Kentucky State Office Building COP            
2,250,000   4.000%, 04/15/27   A1/NR/NR   2,669,985    
1,640,000   5.000%, 06/15/34   A1/NR/NR   1,901,596    

 

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's, S&P and Fitch   Value   (a)
    State Agency (continued)            
    Kentucky State Property and Buildings Commission            
$ 1,000,000   5.000%, 10/01/25   A1/A-/A+   $ 1,120,410    
625,000   4.000%, 04/01/26 Project 105   A2/A-/A+   662,169    
655,000   4.000%, 04/01/27 Project 105   A2/A-/A+   692,289    
1,500,000   5.000%, 10/01/29 Project 106   A1/A-/A+   1,659,615    
770,000   5.000%, 08/01/23 Project 108   A1/A-/A+   858,642    
3,000,000   5.000%, 08/01/33 Project 108   A1/A-/A+   3,478,950    
5,000,000   5.000%, 08/01/32 Project 110   A1/A-/A+   5,814,050    
2,040,000   5.000%, 11/01/27 Project 112   A1/A-/A+   2,507,915    
1,425,000   5.000%, 11/01/28 Project 112   A1/A-/A+   1,741,678    
2,500,000   5.000%, 02/01/31 Project 112   A1/A-/A+   2,958,050    
1,400,000   4.000%, 10/01/30 Project 114   A1/A-/A+   1,602,608    
1,000,000   5.000%, 04/01/23 Project 115   A1/A-/A+   1,101,640    
1,000,000   5.000%, 04/01/29 Project 115   A1/A-/A+   1,231,340    
2,000,000   5.000%, 05/01/30 Project 117   A1/NR/A+   2,452,660    
500,000   5.000%, 05/01/36 Project 117   A1/NR/A+   600,610    
1,490,000   5.000%, 05/01/24 Project 119   A1/A-/A+   1,708,315    
1,015,000   5.000%, 05/01/25 Project 119   A1/A-/A+   1,203,069    
1,000,000   5.000%, 02/01/28 Project 121   A1/NR/A+   1,268,640    
    Total State Agency       49,155,011    
                 
    Airports (3.8%)            
    Louisville, Kentucky Regional Airport Authority            
2,070,000   5.000%, 07/01/23 AMT   NR/A/A+   2,289,296    
2,325,000   5.000%, 07/01/26 AMT   NR/A/A+   2,645,222    
1,895,000   5.000%, 07/01/27 Series A AMT   NR/A/A+   2,151,810    
    Total Airports       7,086,328    
                 
    City (0.6%)            
    River City Parking Authority of River City, Inc., Kentucky First Mortgage            
1,000,000   4.750%, 06/01/27 2013 Series B   Aa3/AA-/NR   1,098,820    
                 
    Excise Tax (1.1%)            
    Kentucky Bond Development Corp. Transient Room Tax Revenue (Lexington Center Corporation) Subordinate            
1,585,000   5.000%, 09/01/27 Series 2018B   A3/NR/NR   1,964,180    
                 
    Healthcare (8.8%)            
    City of Ashland, Kentucky, Medical Center (King's Daughter)            
460,000   5.000%, 02/01/31 Series 2019   Baa3/BBB-/BBB-   557,824    
450,000   5.000%, 02/01/32 Series 2019   Baa3/BBB-/BBB-   542,984    

 

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's, S&P and Fitch   Value   (a)
    Healthcare (continued)            
    Louisville & Jefferson County, Kentucky Metropolitan Government Health System, Norton Healthcare, Inc.            
$ 2,710,000   5.000%, 10/01/27 Series A   NR/A/A+   $ 3,027,693    
3,500,000   5.000%, 10/01/31 Series A   NR/A/A+   4,243,400    
                 
    Louisville & Jefferson County, Kentucky Metropolitan Government, Louisville Medical Center, Laundry Facility Project            
695,000   4.250%, 05/01/23 Series 2012   NR/BBB+/NR   738,743    
                 
    Louisville & Jefferson County, Kentucky Metropolitan Government, Louisville Medical Center, Steam & Chilled Water Plant Project            
915,000   4.250%, 05/01/22 Series 2012A   NR/BBB+/NR   955,928    
                 
    Warren County, Kentucky, Warren County Community Hospital Corp.            
4,975,000   5.000%, 04/01/28   NR/A+/NR   5,417,278    
680,000   4.000%, 10/01/29   NR/A+/NR   713,524    
    Total Healthcare       16,197,374    
                 
    Higher Education (12.6%)            
    Boyle County, Kentucky Educational Facilities Refunding, Series 2017 (Centre College)            
2,050,000   5.000%, 06/01/28   A3/A/NR   2,461,333    
1,000,000   5.000%, 06/01/29   A3/A/NR   1,193,850    
                 
    Eastern Kentucky University General Receipts            
1,250,000   4.000%, 10/01/27   A1/A-/NR   1,278,625    
1,230,000   5.000%, 10/01/30 Series A   A1/NR/NR   1,526,381    
870,000   4.500%, 04/01/32 Series A   A1/NR/NR   978,298    
                 
    Kentucky Bond Development Corp. Industrial Building Revenue, City of Stamping Ground (Transylvania University Project)            
510,000   4.000%, 03/01/33 Series 2019B   NR/A-/NR   581,599    
610,000   4.000%, 03/01/34 Series 2019B   NR/A-/NR   693,607    
                 
    Lexington-Fayette, Kentucky Urban County Government (Transylvania University Project)            
1,390,000   4.500%, 03/01/29   NR/A-/NR   1,398,257    
                 
    Louisville & Jefferson County, Kentucky Metropolitan Government College Improvement (Bellarmine University Project)            
2,270,000   5.000%, 05/01/33   Baa3/NR/NR   2,497,840    

 

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's, S&P and Fitch   Value   (a)
    Higher Education (continued)            
    Morehead State University, Kentucky General Receipts            
$ 1,000,000   5.000%, 04/01/29 Series A   A1/NR/NR   $ 1,147,780    
1,000,000   4.000%, 04/01/31 Series A   A1/NR/NR   1,097,940    
                 
    Murray State University Project, Kentucky General Receipts            
1,850,000   4.500%, 03/01/30 Series A   A1/NR/NR   2,117,492    
                 
    Northern Kentucky University, Kentucky General Receipts            
990,000   3.000%, 09/01/40 Series A AGMC Insured   A1/AA/NR   1,037,807    
                 
    University of Kentucky COP            
1,000,000   4.000%, 05/01/39 2011 Series 2019A   Aa3/AA-/NR   1,173,680    
                 
    University of Kentucky, Kentucky General Receipts            
2,715,000   3.000%, 04/01/39 Series A   Aa2/AA/NR   2,935,920    
                 
    University of Louisville, Kentucky General Receipts            
1,000,000   5.000%, 09/01/30 2011 Series A   Baa1/A+/NR   1,028,670    
    Total Higher Education       23,149,079    
                 
    Housing (0.6%)            
    Kentucky Housing Multifamily Mortgage Revenue            
1,110,000   5.000%, 06/01/35 AMT   NR/NR/NR*   1,112,076    
                 
    Local Public Property (5.6%)            
    Jefferson County, Kentucky Capital Projects            
1,950,000   4.375%, 06/01/24 AGMC Insured   A1/NR/AA+   1,955,948    
1,640,000   4.375%, 06/01/28 AGMC Insured   A1/NR/AA+   1,644,920    
1,070,000   4.375%, 06/01/27 Series A AGMC Insured   A1/NR/AA+   1,073,274    
                 
    Kentucky Association of Counties Finance Corp. Financing Program            
515,000   4.000%, 02/01/25   NR/AA-/NR   535,090    
55,000   4.250%, 02/01/24 Series A   NR/AA-/NR   55,151    
315,000   3.000%, 02/01/21 Series B   NR/AA-/NR   315,589    
350,000   4.000%, 02/01/22 Series B   NR/AA-/NR   363,199    
345,000   5.000%, 02/01/24 Series B   NR/AA-/NR   391,354    
365,000   5.000%, 02/01/25 Series B   NR/AA-/NR   428,200    
385,000   5.000%, 02/01/26 Series B   NR/AA-/NR   466,339    
1,210,000   3.000%, 02/01/38 Series E   NR/AA-/NR   1,315,161    
                 
    Kentucky Bond Corp. Financing Program            
915,000   5.125%, 02/01/28   NR/AA-/NR   918,303    
730,000   3.000%, 02/01/41 Series F   NR/AA-/NR   775,136    
    Total Local Public Property       10,237,664    

 

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's, S&P and Fitch   Value   (a)
    School Building (13.4%)            
    Bullitt County, Kentucky School District Finance Corp.            
$    970,000   1.875%, 12/01/36 Series 2020   A1/NR/NR   $     959,640    
                 
    Fayette County, Kentucky School District Finance Corp.            
3,000,000   5.000%, 08/01/31   Aa3/AA-/NR   3,546,480    
1,000,000   5.000%, 10/01/27 Series A   Aa3/AA-/NR   1,118,680    
                 
    Franklin County, Kentucky School District Finance Corp.            
1,560,000   4.000%, 06/01/29   A1/NR/NR   1,627,080    
1,135,000   4.000%, 04/01/24 Second Series   A1/NR/NR   1,258,874    
                 
    Jefferson County, Kentucky School District Finance Corp.              
805,000   5.000%, 04/01/28 Series A   Aa3/AA-/NR   948,000    
1,075,000   4.500%, 04/01/32 Series A   Aa3/AA-/NR   1,225,457    
4,000,000   4.000%, 07/01/26 Series B   Aa3/AA-/NR   4,336,120    
1,655,000   4.000%, 11/01/29 Series C   Aa3/AA-/NR   1,801,203    
                 
    Logan County, Kentucky School District Finance Corp., Energy Conservation Revenue Bonds            
575,000   4.000%, 04/01/33 Series 2016   A1/NR/NR   646,634    
615,000   4.000%, 04/01/34 Series 2016     A1/NR/NR   689,839    
                 
    Shelby County, Kentucky School District Finance Corp. School Building            
3,200,000   4.000%, 02/01/28   A1/NR/NR   3,774,784    
2,440,000   4.000%, 02/01/29   A1/NR/NR   2,857,679    
    Total School Building       24,790,470    
                 
    Student Loan (2.4%)            
    Kentucky Higher Education Student Loan            
1,440,000   5.000%, 06/01/22 Senior Series A AMT   NR/A/A   1,527,883    
400,000   5.000%, 06/01/24 Senior Series A AMT   NR/A/A   454,528    
600,000   5.000%, 06/01/26 Senior Series A AMT   NR/A/A   715,704    
245,000   3.000%, 06/01/29 Senior Series A AMT   NR/A/A   246,749    
500,000   4.000%, 06/01/34 Senior Series A AMT   NR/A/A   543,120    
750,000   5.000%, 06/01/28 Senior Series 2019A-1 AMT   NR/A/A   914,970    
    Total Student Loan       4,402,954    
                 
    Turnpike/Highway (8.9%)            
    Kentucky State Turnpike Authority            
5,000,000   5.000%, 07/01/29 Series A   Aa3/A-/A+   5,269,350    
4,030,000   5.000%, 07/01/30 Series A   Aa3/A-/A+   4,673,591    
1,000,000   5.000%, 07/01/30 Series A   Aa3/A-/A+   1,052,650    
1,715,000   5.000%, 07/01/31 Series B   Aa3/A-/NR   2,039,427    
2,925,000   5.000%, 07/01/33 Series B   Aa3/A-/NR   3,447,288    
    Total Turnpike/Highway       16,482,306    

 

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's, S&P and Fitch   Value   (a)
    Utilities (2.6%)            
    Louisville & Jefferson County, Kentucky Metropolitan Sewer District            
$   500,000   5.000%, 05/15/28 Series A   Aa3/AA/AA-   $      519,840    
1,920,000   4.500%, 05/15/30 Series A   Aa3/AA/NR   2,183,578    
1,000,000   2.250%, 05/15/44 Series A   Aa3/AA/NR   1,023,670    
                 
    Northern Kentucky Water District            
1,000,000   5.000%, 02/01/26   Aa2/NR/NR   1,051,360    
    Total Utilities       4,778,448    
    Total Revenue Bonds       160,454,710    
                 
    Pre-Refunded\ Escrowed to Maturity Bonds (5.0%)††            
    Pre-Refunded General Obligation Bonds (1.0%)            
    Warren County, Kentucky            
615,000   4.000%, 06/01/25 Series 2011   Aa1/NR/NR   624,619    
635,000   4.000%, 06/01/26 Series 2011   Aa1/NR/NR   644,931    
660,000   4.000%, 06/01/27 Series 2011   Aa1/NR/NR   670,322    
    Total General Obligation       1,939,872    
                 
    Pre-Refunded Revenue Bonds\ Escrowed to Maturity Bonds (4.0%)            
    Airports (1.6%)            
    Lexington-Fayette Urban County Airport Board, Kentucky            
1,555,000   5.000%, 07/01/28 2012 Series A  AMT   Aa2/AA/NR   1,664,223    
400,000   5.000%, 07/01/29 2012 Series A AMT   Aa2/AA/NR   428,096    
750,000   5.000%, 07/01/31 2012 Series A AMT   Aa2/AA/NR   802,680    
    Total Airports       2,894,999    
                 
    Healthcare (1.2%)            
    Hardin County, Kentucky, Hardin Memorial Hospital            
735,000   5.500%, 08/01/22 AGMC Insured ETM   A2/AA/NR   795,020    
675,000   5.500%, 08/01/23 AGMC Insured ETM   A2/AA/NR   764,498    
500,000   5.250%, 08/01/24 AGMC Insured   A2/AA/NR   563,095    
    Total Healthcare       2,122,613    
                 
    Local Public Property (0.3%)            
    Kentucky Association of Counties Finance Corp. Financing Program            
215,000   5.375%, 02/01/27 Series A   NR/NR/NR*   215,815    
100,000   5.375%, 02/01/27 Series A   NR/AA-/NR   100,379    
100,000   5.375%, 02/01/28 Series A   NR/AA-/NR   100,379    
230,000   5.375%, 02/01/28 Series A   NR/NR/NR*   230,872    
    Total Local Public Property       647,445    
                 
    School Building (0.9%)            
    Caldwell County, Kentucky School District Finance Corp.            
530,000   4.250%, 04/01/30   A1/NR/NR   535,146    

 

 

 
 
 

 

 

Principal
Amount
  Pre-Refunded\ Escrowed to Maturity Bonds (continued)††   Ratings Moody's, S&P and Fitch   Value   (a)
    School Building (continued)            
    Campbell County, Kentucky School District Finance Corp.            
$   340,000   3.500%, 08/01/22   A1/NR/NR   $       346,355    
                 
    Fayette County, Kentucky School District Finance Corp.            
750,000   4.250%, 06/01/29 Series A   Aa3/AA-/NR   762,495    
    Total School Building       1,643,996    
    Total Pre-Refunded Revenue Bonds\ Escrowed to Maturity Bonds       7,309,053    
    Total Pre-Refunded\ Escrowed to Maturity Bonds       9,248,925    
    Total Municipal Bonds (cost $166,220,423)       176,387,540    

 

Shares   Short-Term Investment (3.2%)            
5,825,656   Dreyfus Treasury Obligations Cash Management - Institutional Shares, 0.03%** (cost $5,825,656)   Aaa-mf/AAAm/NR   5,825,656    
                 
    Total Investments (cost $172,046,079 - note b)   98.9%   182,213,196    
    Other assets less liabilities   1.1   2,113,363    
    Net Assets   100.0%   $ 184,326,559    
                 
                 
        Percent of        
    Portfolio Distribution By Quality Rating   Investments †        
    Pre-refunded bonds\ ETM bonds††   5.2%        
    Aa of Moody's or AA of S&P or Fitch   36.4        
    A of Moody's or S&P or Fitch   54.8        
    Baa of Moody's or BBB of S&P or Fitch   3.0        
    Not Rated*   0.6        
        100.0%        

 

    PORTFOLIO ABBREVIATIONS:            
    AGMC - Assured Guaranty Municipal Corp.            
    AMT - Alternative Minimum Tax            
    COP - Certificates of Participation            
    ETM - Escrowed to Maturity            
    NPFG - National Public Finance Guarantee            
    NR - Not Rated            

 

    * Any security not rated ("NR") by any of the Nationally Recognized Statistical Rating Organizations ("NRSRO") has been determined by the Investment Adviser to have sufficient quality to be ranked in the top credit four ratings if a credit rating were to be assigned by a NRSRO.    
    **   The rate is an annualized seven-day yield at period end.    
    †     Where applicable, calculated using the highest rating of the three NRSRO. Percentages in this table do not include the Short-Term Investment.    
    ††   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.  Escrowed to Maturity bonds are bonds where money has been placed in the escrow account which is used to pay principal and interest through the bond's originally scheduled maturity date.  Escrowed to Maturity are shown as ETM.  All other securities in the category are pre-refunded.    

 

 

See accompanying notes to financial statements.

 

 
 
 

 

 

AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY

NOTES TO FINANCIAL STATEMENTS

December 31, 2020

(unaudited)

 

 

(a)Securities valuation policies and other investment related disclosures are hereby incorporated by reference in the annual and semi-annual reports previously filed with the Securities and Exchange Commission on Form N-CSR.

 

(b)At December 31, 2020, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $172,046,079 amounted to of $10,167,117, which consisted of aggregate gross unrealized appreciation of $10,212,651 and aggregate gross unrealized depreciation of $45,534.

 

(c)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 inactive 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 December 31, 2020:

 

Valuation Inputs+   Investments in
Securities
Level 1 – Quoted Prices - Short-Term Investment $ 5,825,656
Level 2 – Other Significant Observable Inputs - Municipal Bonds   176,387,540
Level 3 – Significant Unobservable Inputs   -
Total $ 182,213,196

 

+ See schedule of investments for a detailed listing of securities.