AQUILA TAX-FREE TRUST OF ARIZONA

SCHEDULE OF INVESTMENTS

December 31, 2020

(unaudited)

 

Principal
Amount
  General Obligation Bonds (24.6%)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    City (2.7%)            
    Buckeye Jackrabbit Trail Sanitary Sewer Improvement District            
$   222,000   6.250%, 01/01/29   NR/A-/NR   $   228,169    
                 
    Gilbert Improvement District No. 19            
5,000   5.200%, 01/01/23   Aa1/AA-/NR   5,018    
                 
    Gilbert Improvement District No. 20            
585,000   5.100%, 01/01/29   Aa1/AA-/NR   598,502    
                 
    Glendale, Arizona            
200,000   5.000%, 07/01/33   NR/AA-/AAA   259,090    
                 
    Goodyear McDowell Road Commercial Corridor Improvement District            
855,000   3.250%, 01/01/27 BAMAC Insured   Aa2/AA/NR   979,445    
                 
    Mesa, Arizona            
425,000   4.000%, 07/01/32   Aa2/AA/NR   516,035    
425,000   4.000%, 07/01/33   Aa2/AA/NR   513,710    
450,000   4.000%, 07/01/34   Aa2/AA/NR   542,642    
                 
    Scottsdale, Arizona            
200,000   4.000%, 07/01/28   Aaa/AAA/AAA   229,872    
500,000   4.000%, 07/01/34   Aaa/AAA/AAA   585,585    
                 
    Tempe Improvement District (Pier Town Lake)            
2,000,000   5.000%, 01/01/29   Aa2/NR/NR   2,006,920    
                 
    Tolleson, Arizona            
1,000,000   4.000%, 07/01/38   NR/AA/AAA   1,168,630    
    Total City       7,633,618    
                 
    County (6.2%)            
    Drexel Heights Fire District            
120,000   3.000%, 07/01/21   NR/AA-/NR   121,600    
100,000   3.000%, 07/01/22   NR/AA-/NR   103,749    
255,000   3.000%, 07/01/23   NR/AA-/NR   270,364    
                 
    Maricopa Co. Daisy Mountain Fire District            
340,000   4.000%, 07/01/27 AGMC Insured   NR/AA/NR   401,020    
395,000   3.500%, 07/01/28 AGMC Insured   NR/AA/NR   452,828    
                 
    Maricopa Co. Special Health Care District            
2,500,000   5.000%, 07/01/25   Aa3/NR/A+   2,987,825    
2,500,000   5.000%, 07/01/26   Aa3/NR/A+   3,077,300    
3,000,000   5.000%, 07/01/32   Aa3/NR/A+   3,791,700    
1,500,000   5.000%, 07/01/34   Aa3/NR/A+   1,883,160    

 

 
 
 

 

 

Principal
Amount
  General Obligation Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    County (continued)            
    Pima Co. Northwest Fire District            
$   515,000   4.000%, 07/01/21   NR/AA-/NR   $   524,378    
545,000   4.000%, 07/01/22   NR/AA-/NR   573,258    
                 
    Yavapai Co. Jail District            
1,650,000   4.000%, 07/01/33 BAMAC Insured   NR/AA/AA   1,933,173    
                 
    Yuma Co. Free Library District            
1,000,000   4.000%, 07/01/29   Aa3/NR/AAA   1,126,100    
    Total County       17,246,455    
                 
    School District (15.7%)            
    Buckeye Union High School District No. 201            
1,000,000   5.000%, 07/01/33 AGMC Insured   NR/AA/NR   1,185,360    
500,000   5.000%, 07/01/36 BAMAC Insured   NR/AA/NR   612,180    
                 
    Gila Co. Unified School District No. 10 (Payson)            
1,000,000   5.000%, 07/01/28   Aa3/NR/NR   1,152,620    
                 
    Glendale Union High School District No. 205            
525,000   5.000%, 07/01/27 BAMAC Insured   NR/AA/NR   582,829    
                 
    Maricopa Co. Elementary School District No. 1 (Phoenix)            
500,000   4.000%, 07/01/31 BAMAC Insured   NR/AA/NR   586,575    
460,000   4.000%, 07/01/32 BAMAC Insured   NR/AA/NR   535,753    
                 
    Maricopa Co. Elementary School District No. 2 (Riverside)            
1,000,000   5.000%, 07/01/30 BAMAC Insured   NR/AA/NR   1,310,170    
                 
    Maricopa Co. Elementary School District No. 3 (Tempe)            
500,000   5.000%, 07/01/30   Aa2/NR/NR   628,795    
                 
    Maricopa Co. Elementary School District No. 8 (Osborn)            
500,000   5.000%, 07/01/31 AGMC Insured   NR/AA/NR   622,980    
                 
    Maricopa Co. Elementary School District No. 25 (Liberty)            
350,000   4.000%, 07/01/35 AGMC Insured   NR/AA/NR   423,269    
300,000   4.000%, 07/01/36 AGMC Insured   NR/AA/NR   361,584    
375,000   4.000%, 07/01/37 AGMC Insured   NR/AA/NR   450,611    
                 
    Maricopa Co. Elementary School District No. 28 (Kyrene Elementary)            
350,000   5.000%, 07/01/34   Aa1/AA/NR   414,708    
                 
    Maricopa Co. Elementary School District No. 62 (Union)            
315,000   4.000%, 07/01/29 BAMAC Insured   NR/AA/NR   377,020    
580,000   4.000%, 07/01/32 BAMAC Insured   NR/AA/NR   685,392    
300,000   4.000%, 07/01/33 BAMAC Insured   NR/AA/NR   353,109    
375,000   4.000%, 07/01/34 BAMAC Insured   NR/AA/NR   440,468    
                 
    Maricopa Co. Elementary School District No. 66 (Roosevelt)            
500,000   5.000%, 07/01/21 BAMAC Insured   A2/AA/NR   511,420    

 

 
 
 

 

 

Principal
Amount
  General Obligation Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    School District (continued)            
    Maricopa Co. Elementary School District No. 92 (Pendergast)            
$   175,000   5.000%, 07/01/21   A1/NR/AA+   $   179,041    
230,000   5.000%, 07/01/22   A1/NR/AA+   246,082    
                 
    Maricopa Co. High School District No. 210 (Phoenix)            
500,000   4.000%, 07/01/26   Aa2/AA/AAA   578,700    
                 
    Maricopa Co. High School District No. 214 (Tolleson)            
825,000   4.000%, 07/01/34   Aa1/AA/NR   990,248    
                 
    Maricopa Co. Unified School District No. 11 (Peoria)            
1,500,000   4.000%, 07/01/25   A1/AA-/NR   1,581,495    
675,000   4.500%, 07/01/33 AGMC Insured   A1/AA/NR   766,996    
                 
    Maricopa Co. Unified School District No. 24 (Gila Bend)            
105,000   5.500%, 07/01/22   NR/NR/NR*   105,183    
                 
    Maricopa Co. Unified School District No. 60 (Higley)            
1,615,000   5.000%, 07/01/29   Aa3/A+/NR   1,854,844    
                 
    Maricopa Co. Unified School District No. 66 (Roosevelt)            
910,000   4.000%, 07/01/31 BAMAC Insured   A2/AA/NR   1,073,791    
                 
    Maricopa Co. Unified School District No. 69 (Paradise Valley)            
100,000   5.000%, 07/01/24   Aa1/NR/AAA   116,585    
1,000,000   4.500%, 07/01/30   Aa1/NR/AAA   1,094,800    
225,000   3.000%, 07/01/35   Aa1/NR/AAA   255,098    
300,000   3.000%, 07/01/36   Aa1/NR/AAA   338,958    
                 
    Maricopa Co. Unified School District No. 80 (Chandler)            
300,000   5.000%, 07/01/23   Aa1/AA/NR   335,664    
545,000   4.000%, 07/01/36   Aa1/AA/NR   655,101    
                 
    Maricopa Co. Unified School District No. 89 (Dysart)            
500,000   4.000%, 07/01/28   NR/A+/AAA   551,835    
2,185,000   5.500%, 07/01/22 NPFG/FGIC Insured   Baa2/A+/NR   2,353,660    
                 
    Maricopa Co. Unified School District No. 90 (Saddle Mountain)            
1,300,000   5.125%, 07/01/25 AGMC Insured   A2/AA/NR   1,331,005    
                 
    Maricopa Co. Unified School District No. 93 (Cave Creek)            
100,000   4.000%, 07/01/29 BAMAC Insured   NR/AA/NR   113,267    
                 
    Mohave Co. Unified School District No. 1 (Lake Havasu)            
250,000   2.000%, 07/01/21   Aa2/NR/NR   252,273    
500,000   5.000%, 07/01/35   Aa2/NR/NR   617,270    
                 
    Mohave Co. Unified School District No. 20 (Kingman)            
2,000,000   5.000%, 07/01/25 BAMAC Insured   A1/AA/NR   2,410,980    

 

 
 
 

 

 

Principal
Amount
  General Obligation Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    School District (continued)            
    Navajo Co. Unified School District No. 10 (Show Low)            
$   500,000   4.000%, 07/01/31 AGMC Insured   NR/AA/NR   $   586,575    
                 
    Navajo Co. Unified School District No. 32 (Blue Ridge)            
400,000   5.000%, 07/01/29 AGMC Insured   NR/AA/NR   503,940    
                 
    Pima Co. Unified School District No. 6 (Marana)            
1,250,000   5.000%, 07/01/25   NR/A/NR   1,278,300    
950,000   5.250%, 07/01/25 AGMC Insured   NR/AA/NR   1,017,830    
1,000,000   4.000%, 07/01/37 AGMC Insured   NR/AA/NR   1,153,000    
1,000,000   4.250%, 07/01/32 MAC Insured   NR/AA/NR   1,128,620    
                 
    Pima Co. Unified School District No. 8 (Flowing Wells)            
1,000,000   4.500%, 07/01/37 AGMC Insured   NR/AA/NR   1,183,790    
                 
    Pima Co. Unified School District No. 10 (Amphitheater)            
700,000   5.000%, 07/01/27   Aa2/A+/NR   715,778    
                 
    Pima Co. Unified School District No. 12 (Sunnyside)            
1,050,000   4.000%, 07/01/28 BAMAC Insured   NR/AA/NR   1,132,068    
                 
    Pima Co. Unified School District No. 20 (Vail)            
260,000   5.000%, 07/01/25 AGMC Insured   NR/AA/NR   309,462    
1,000,000   5.000%, 07/01/26 AGMC Insured   NR/AA/NR   1,227,900    
700,000   5.000%, 07/01/28 AGMC Insured   NR/AA/NR   903,245    
                 
    Pinal Co. Unified School District No. 1 (Florence)            
200,000   2.000%, 07/01/21 BAMAC Insured   NR/AA/NR   201,640    
                 
    Pinal Co. Unified School District No. 44 (J. O. Combs)            
1,225,000   3.750%, 07/01/38 AGMC Insured   NR/AA/NR   1,396,120    
                 
    Western Maricopa Education Center District No. 402            
1,200,000   4.000%, 07/01/28   NR/AA-/NR   1,294,104    
                 
    Yavapai Co. Elementary School District No. 6 (Cottonwood-Oak Creek)            
720,000   5.000%, 07/01/34 BAMAC Insured   A3/AA/NR   850,666    
    Total School District       43,920,757    
    Total General Obligation Bonds       68,800,830    
                 
    Revenue Bonds (65.6%)            
    Airport (7.7%)            
    Phoenix Civic Improvement Corp. Airport Bonds            
5,000,000   4.000%, 07/01/40   A1/A/NR   5,663,000    
725,000   5.000%, 07/01/22 AMT   A1/A/NR   769,979    
2,595,000   5.000%, 07/01/27 AMT   Aa3/A+/NR   3,266,975    
185,000   5.000%, 07/01/30 AMT   Aa3/A+/NR   229,232    
3,850,000   5.000%, 07/01/31 AMT   Aa3/A+/NR   4,753,441    
2,700,000   5.000%, 07/01/32 AMT   Aa3/A+/NR   2,954,421    
200,000   5.000%, 07/01/33 AMT   Aa3/A+/NR   249,092    
1,600,000   3.000%, 07/01/49   A1/A/NR   1,680,144    
300,000   5.000%, 07/01/49   A1/A/NR   372,702    
1,000,000   3.250%, 07/01/49 AMT   A1/A/NR   1,051,110    

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    Airport (continued)            
    Phoenix-Mesa Gateway Airport Authority            
$   515,000   5.000%, 07/01/38 AMT   A1/AA+/NR   $       545,102    
    Total Airport       21,535,198    
                 
    Charter Schools (2.3%)            
    Arizona Industrial Development Authority (Basis Schools)            
240,000   5.000%, 07/01/37 State Enhanced   NR/AA-/NR   286,102    
                 
    Arizona Industrial Development Authority (Candeo Schools)            
500,000   3.375%, 07/01/41 State Enhanced   NR/AA-/NR   524,970    
                 
    Arizona Industrial Development Authority (Equitable Schools)            
225,000   5.000%, 11/01/21   NR/A/NR   233,258    
700,000   4.000%, 11/01/27   NR/A/NR   845,747    
600,000   5.000%, 11/01/32   NR/A/NR   796,278    
1,000,000   4.000%, 11/01/36   NR/A/NR   1,202,270    
                 
    La Paz Co. Industrial Development Authority (Harmony Public Schools Projects)            
200,000   5.000%, 02/15/28   NR/BBB/NR   231,544    
                 
    Maricopa Co. Industrial Development Authority (Great Hearts Arizona Projects)            
250,000   5.000%, 07/01/26 State Enhanced   NR/AA-/NR   306,220    
315,000   5.000%, 07/01/37 State Enhanced   NR/AA-/NR   380,860    
                 
    Phoenix Industrial Development Authority (Great Hearts Academies Project)            
500,000   5.000%, 07/01/41   NR/BBB-/NR   552,635    
                 
    Phoenix Industrial Development Authority (Villa Montessori Inc. Project)            
415,000   5.000%, 07/01/35   NR/BBB-/NR   461,434    
                 
    Phoenix Industrial Development Authority (Vista College Preparatory Projects)            
430,000   5.000%, 07/01/43 State Enhanced   NR/AA-/NR   519,539    
    Total Charter Schools       6,340,857    
                 
    Excise Tax (11.6%)            
    Buckeye Excise Tax            
400,000   4.000%, 07/01/36   NR/AA/AA   453,084    
1,000,000   5.000%, 07/01/43   NR/AA/AA   1,176,650    
                 
    Buckeye Roosevelt Street Improvement District            
100,000   4.000%, 01/01/32   NR/A-/NR   105,185    
125,000   4.050%, 01/01/33   NR/A-/NR   131,314    
                 
    Bullhead City Excise Tax            
310,000   3.000%, 07/01/21   NR/AA/NR   314,210    
                 
    Cottonwood Pledged Revenue Obligations            
500,000   5.000%, 07/01/30 AGMC Insured   NR/AA/NR   595,360    

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    Excise Tax (continued)            
    Flagstaff Pledged Revenue            
$  1,395,000   4.250%, 07/01/33   NR/AA/NR   $  1,607,542    
                 
    Gila Co. Pledged Revenue Obligations            
555,000   4.000%, 07/01/30   NR/AA/NR   669,929    
                 
    Gilbert Pledged Revenue Obligations            
450,000   4.000%, 07/01/35   Aa1/AAA/AAA   502,844    
                 
    Goodyear Public Improvement Corp.            
500,000   5.250%, 07/01/24   Aa2/AA+/NR   537,100    
1,500,000   5.000%, 07/01/26   Aa2/AA+/NR   1,601,775    
                 
    Graham Co. Jail District Revenue Pledged Obligation            
1,000,000   5.000%, 07/01/35   NR/A-/NR   1,143,020    
                 
    Marana Pledged Excise Tax            
275,000   4.000%, 07/01/30   NR/AA/NR   295,908    
1,400,000   5.000%, 07/01/33   NR/AA/NR   1,552,726    
                 
    Mesa Excise Tax            
1,000,000   3.000%, 07/01/38   Aa3/AA+/NR   1,085,900    
                 
    Page Pledged Revenue Refunding            
1,080,000   5.000%, 07/01/25   NR/AA-/NR   1,104,397    
                 
    Phoenix Civic Improvement Corp.            
2,425,000   4.000%, 07/01/45   Aa2/AAA/AA+   2,921,980    
                 
    Phoenix Civic Improvement Corp. (Civic Plaza)            
2,000,000   5.500%, 07/01/27 BHAC/FGIC Insured   Aa1/AA+/NR   2,561,940    
2,000,000   5.500%, 07/01/30 BHAC/FGIC Insured   Aa1/AA+/NR   2,746,760    
1,000,000   5.500%, 07/01/23 NPFG/FGIC Insured   Aa2/AA/NR   1,115,360    
2,300,000   5.500%, 07/01/33 NPFG/FGIC Insured   Aa2/AA/NR   3,340,980    
                 
    Pinal Co. Revenue Obligations Refunding            
1,500,000   5.000%, 08/01/33   NR/AA-/AA   1,712,535    
                 
    Queen Creek Excise Tax & State Shared Revenue            
250,000   5.000%, 08/01/30   NR/AA/AA   277,893    
                 
    Santa Cruz Co. Jail District            
1,655,000   5.000%, 07/01/28 AGMC Insured   NR/AA/NR   2,079,292    
885,000   5.000%, 07/01/31 AGMC Insured   NR/AA/NR   1,097,037    
                 
    Scottsdale Municipal Property Corp.            
1,500,000   5.000%, 07/01/34   Aa1/AAA/AA+   1,784,625    
    Total Excise Tax       32,515,346    

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    Healthcare (9.5%)            
    Arizona Health Facilities Authority (Banner Health)            
$ 2,000,000   5.000%, 01/01/44   NR/AA-/AA-   $ 2,252,160    
                 
    Arizona Health Facilities Authority (Phoenix Children's Hospital)            
1,000,000   5.000%, 02/01/27   A1/A/A+   1,049,070    
775,000   5.000%, 02/01/30   A1/A/A+   810,371    
6,035,000   5.000%, 02/01/34   A1/A/A+   6,290,643    
                 
    Arizona Health Facilities Authority (Scottsdale Lincoln Hospitals)            
3,000,000   5.000%, 12/01/34   A2/NR/A   3,480,480    
1,500,000   5.000%, 12/01/42   A2/NR/A   1,720,875    
                 
    Maricopa Co. Industrial Development Authority (Banner Health)            
1,600,000   5.000%, 01/01/38   NR/AA-/AA-   1,952,048    
                 
    Maricopa Co. Industrial Development Authority (HonorHealth)            
2,250,000   4.125%, 09/01/38   A2/NR/A   2,607,233    
1,000,000   4.125%, 09/01/42   A2/NR/A   1,147,440    
                 
    Yavapai Co. Industrial Development Authority (Northern Arizona Healthcare System)            
500,000   5.250%, 10/01/25   NR/AA-/NR   518,010    
500,000   5.250%, 10/01/26   NR/AA-/NR   517,520    
                 
    Yavapai Co. Industrial Development Authority (Yavapai Regional Medical Center)            
200,000   5.000%, 08/01/21   A2/NR/A+   204,996    
1,000,000   5.250%, 08/01/33   A2/NR/A+   1,101,090    
675,000   5.000%, 08/01/34   A2/NR/A+   797,762    
                 
    Yuma Industrial Development Authority (Yuma Regional Medical Center)            
1,635,000   5.000%, 08/01/23   NR/A/NR   1,820,981    
200,000   5.000%, 08/01/32   NR/A/NR   225,308    
    Total Healthcare       26,495,987    
                 
    Higher Education (8.6%)            
    Arizona Board of Regents (Arizona State University System)            
480,000   5.000%, 07/01/31   Aa2/AA/NR   569,726    
285,000   5.000%, 07/01/32   Aa2/AA/NR   301,832    
115,000   5.000%, 07/01/32   Aa2/AA/NR   121,792    
565,000   4.000%, 07/01/49   Aa2/AA/NR   656,852    
                 
    Arizona Board of Regents (Arizona State University System) Green Bonds            
750,000   5.000%, 07/01/34   Aa2/AA/NR   883,688    

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    Higher Education (continued)            
    Arizona Board of Regents (Northern Arizona University System)            
$   575,000   5.000%, 06/01/32   A1/A+/NR   $    648,215    
                 
    Arizona Board of Regents (Northern Arizona University) Speed Stimulus Plan for Economic & Educational Development            
2,090,000   5.000%, 08/01/29 AGMC Insured   A2/AA/NR   2,725,026    
                 
    Arizona Board of Regents (University of Arizona System) Speed Stimulus Plan for Economic & Educational Development            
1,500,000   5.000%, 08/01/34   Aa3/A+/NR   1,705,635    
1,500,000   3.125%, 08/01/39   Aa3/A+/NR   1,638,840    
                 
    Arizona Board of Regents (University of Arizona System)            
400,000   5.000%, 06/01/29   Aa2/AA-/NR   459,184    
                 
    Arizona Industrial Development Authority (North Carolina Central University Student Housing)            
250,000   4.000%, 06/01/34 BAMAC Insured   Baa3/AA/NR   284,685    
700,000   4.000%, 06/01/39 BAMAC Insured   Baa3/AA/NR   786,464    
                 
     Arizona State University Speed Stimulus Plan for Economic & Educational Development            
625,000   5.000%, 08/01/34   Aa3/AA-/NR   710,681    
                 
    Cochise Co. Community College District            
630,000   5.000%, 07/01/31 BAMAC Insured   A2/AA/NR   718,704    
                 
    McAllister Academic Village (Arizona State University Hassayampa)            
1,000,000   5.000%, 07/01/39   Aa3/AA-/NR   1,189,410    
                 
    Phoenix Industrial Development Authority (Downtown Phoenix Student Housing)            
200,000   5.000%, 07/01/26   Baa3/NR/NR   224,296    
400,000   5.000%, 07/01/33   Baa3/NR/NR   447,324    
1,250,000   5.000%, 07/01/42   Baa3/NR/NR   1,364,813    
                 
    Phoenix Industrial Development Authority (Downtown Phoenix Student Housing II)            
100,000   5.000%, 07/01/26   Baa3/NR/NR   111,606    
250,000   5.000%, 07/01/27   Baa3/NR/NR   282,270    
150,000   5.000%, 07/01/28   Baa3/NR/NR   170,960    
200,000   5.000%, 07/01/30   Baa3/NR/NR   228,332    
300,000   5.000%, 07/01/32   Baa3/NR/NR   339,150    
                 
    Phoenix Industrial Development Authority (Eastern Kentucky University Project)            
500,000   5.000%, 10/01/36   A3/BBB+/NR   573,460    

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    Higher Education (continued)            
    Phoenix Industrial Development Authority (Rowan University Project)            
$  2,000,000   5.250%, 06/01/34   A3/A/NR   $  2,101,200    
                 
    Pima Co. Community College District            
1,075,000   5.000%, 07/01/36   Aa3/NR/AA-   1,360,230    
750,000   4.000%, 07/01/37   Aa3/NR/AA-   884,363    
500,000   4.000%, 07/01/38   Aa3/NR/AA-   588,175    
                 
    Yavapai Co. Community College District            
1,000,000   4.875%, 07/01/25 AGMC Insured   A1/AA/NR   1,020,690    
                 
    Yuma/ La Paz Counties Community College District (Arizona Western College), Refunding            
1,000,000   4.000%, 07/01/28 2014A   Aa3/A+/NR   1,103,670    
    Total Higher Education       24,201,273    
                 
    Housing (1.8%)            
    Arizona Industrial Development Authority Green Bond MTEB (Chandler Village Apartments Project)            
4,969,927   2.120%, 07/01/37 FNMA Insured Series 2020   Aaa/NR/NR   5,101,730    
                 
    Lease (4.7%)            
    Arizona Board of Regents (Northern Arizona University) COP            
600,000   5.000%, 09/01/27   A2/A/NR   640,290    
500,000   5.000%, 09/01/28   A2/A/NR   532,685    
1,000,000   5.000%, 09/01/29   A2/A/NR   1,063,630    
                 
    Maricopa Co. COP            
4,000,000   5.000%, 07/01/21   Aa1/AA+/AA+   4,095,560    
                 
    Nogales Municipal Development Authority, Inc.            
845,000   4.000%, 06/01/36   NR/AA-/NR   935,854    
615,000   5.000%, 06/01/28 AGMC Insured   NR/AA/NR   747,969    
810,000   4.000%, 06/01/33 AGMC Insured   NR/AA/NR   965,431    
2,000,000   4.000%, 06/01/39 AGMC Insured   NR/AA/NR   2,345,120    
                 
    Prescott Municipal Property Corp.            
500,000   5.000%, 07/01/34   Aa3/AA+/NR   564,990    
                 
    State of Arizona COP            
500,000   5.000%, 10/01/25   Aa2/AA-/NR   610,665    
500,000   5.000%, 09/01/27   Aa2/AA-/NR   602,595    
    Total Lease       13,104,789    

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    Mortgage (2.6%)            
    Eastmark Community Facilities District No. 1            
$   345,000   4.000%, 07/15/33 AGMC Insured   NR/AA/NR   $   398,165    
360,000   4.000%, 07/15/34 AGMC Insured   NR/AA/NR   414,637    
                 
    Estrella Mountain Ranch Community Facilities District            
1,000,000   5.000%, 07/15/32 AGMC Insured   NR/AA/NR   1,213,740    
                 
    Festival Ranch Community Facilities District            
950,000   5.000%, 07/15/37 BAMAC Insured   NR/AA/NR   1,173,535    
750,000   5.000%, 07/15/38 BAMAC Insured   NR/AA/NR   929,333    
                 
    Goodyear Community Facilities Utilities District No. 1            
500,000   4.000%, 07/15/28   A1/A-/NR   551,410    
500,000   4.000%, 07/15/32   A1/A-/NR   569,060    
                 
    Merrill Ranch Community Facilities District #2            
680,000   6.750%, 07/15/38   NR/BBB/NR   769,624    
                 
    Verrado Community Facilities Utilities District No. 1            
500,000   6.000%, 07/15/33 144A   NR/NR/NR*   520,025    
                 
    Vistancia Community Facilities District            
710,000   4.000%, 07/15/23 BAMAC Insured   A1/AA/NR   772,913    
    Total Mortgage       7,312,442    
                 
    Pollution Control (1.7%)            
    Apache Co. Industrial Development Authority, Pollution Control (Tucson Electric Power Co.)            
2,955,000   4.500%, 03/01/30   A3/A-/NR   3,059,134    
                 
    Maricopa Co. Pollution Control (El Paso Electric Co.)            
375,000   3.600%, 02/01/40   Baa2/NR/BBB+   416,036    
250,000   3.600%, 04/01/40   Baa2/NR/BBB+   277,235    
                 
    Maricopa Co. Pollution Control (Palo Verde Project)            
1,000,000   1.050%, 01/01/38 (Mandatory Put Date 6/01/22)   Baa2/BBB/NR   1,009,050    
    Total Pollution Control       4,761,455    
                 
    Resource Recovery (2.9%)            
                 
    Chandler Industrial Development Authority (Intel Corporation Project)            
4,250,000   2.700%, 12/01/37 AMT (Mandatory Put Date 8/14/23)   A1/A+/NR   4,490,848    
                 
    Maricopa Co. Industrial Development Authority, (Waste Management Inc. Project)            
1,500,000   3.375%, 12/01/31 AMT (Mandatory Put Date 6/03/24)   NR/A-/NR   1,518,180    
                 
    Yavapai Co. Industrial Development Authority, (Waste Management Inc. Project)            
1,500,000   2.800%, 06/01/27 AMT (Mandatory Put Date 06/01/21)   NR/A-/NR   1,514,025    
520,000   2.200%, 03/01/28 AMT (Mandatory Put Date 06/03/24)   NR/A-/NR   549,136    
    Total Resource Recovery       8,072,189    

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    Senior Living Facilities (2.2%)            
    Arizona Industrial Development Authority, First Tier (Great Lakes Senior Living Communities)            
$   480,000   4.250%, 01/01/40   NR/BB+/NR   $   401,362    
                 
    Arizona Industrial Development Authority, Second Tier (Great Lakes Senior Living Communities)            
620,000   5.000%, 01/01/28   NR/BB/NR   593,886    
555,000   5.000%, 01/01/29   NR/BB/NR   525,568    
1,205,000   5.000%, 01/01/30   NR/BB/NR   1,128,567    
1,405,000   4.000%, 01/01/33   NR/BB/NR   1,155,598    
                 
    Maricopa Co. Industrial Development Authority (Christian Care Retirement Apartments)            
1,000,000   5.000%, 01/01/30   NR/A/NR   1,156,260    
                 
    Pima Co. Industrial Development Authority (Christian Care Senior Living Facility)            
1,000,000   5.000%, 12/15/32   NR/BBB+/NR   1,143,420    
    Total Senior Living Facilities       6,104,661    
                 
    Transportation (0.2%)            
    Pima Co. Regional Transportation Authority Excise Tax            
500,000   5.000%, 06/01/26   NR/AA+/AA   556,580    
                 
    Turnpike/Highway (1.1%)            
    Pima Co. Street & Highway Revenue            
1,550,000   2.000%, 07/01/32   NR/AA/AA   1,627,903    
1,480,000   2.000%, 07/01/33   NR/AA/AA   1,534,582    
    Total Turnpike/Highway       3,162,485    
                 
    Utility (5.7%)            
    Greater Arizona Development Authority Revenue            
500,000   5.000%, 08/01/28 AGMC Insured   A1/AA/NR   567,015    
                 
    Mesa Utility System            
1,500,000   4.000%, 07/01/32   Aa2/AA-/NR   1,740,495    
1,560,000   4.000%, 07/01/34   Aa2/AA-/NR   1,959,266    
2,100,000   5.000%, 07/01/35   Aa2/AA-/NR   2,147,754    
                 
    Pinal Co. Electrical District No. 3, Electrical System Revenue            
305,000   4.750%, 07/01/31   NR/A+/NR   310,646    
                 
    Salt River Project Agricultural Improvement and Power Revenue            
115,000   5.000%, 01/01/26   Aa1/AA+/NR   142,078    
3,600,000   4.000%, 01/01/39   Aa1/AA+/NR   4,432,536    
150,000   5.000%, 01/01/32   Aa1/AA+/NR   193,337    
                 
    Salt Verde Finance Corp. Gas Revenue            
3,000,000   5.250%, 12/01/28   A3/BBB+/NR   3,871,140    
                 
    Surprise Utility System Senior Lien Obligations            
470,000   5.000%, 07/01/33   NR/AA+/NR   604,937    
    Total Utility       15,969,204    

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    Water/Sewer (3.0%)            
    Gilbert Water Resource Municipal Property Corp.            
$ 1,190,000   4.000%, 07/01/34   NR/AAA/AAA   $   1,377,056    
                 
    Glendale Water & Sewer Revenue            
500,000   5.000%, 07/01/28   A1/AA/NR   533,460    
                 
    Lake Havasu City Wastewater System Revenue            
1,000,000   5.000%, 07/01/43 AGMC Insured   A2/AA/NR   1,163,730    
                 
    Phoenix Civic Improvement Corp. Wastewater Revenue            
1,500,000   5.500%, 07/01/24 NPFG/FGIC Insured   Aa2/AAA/NR   1,775,400    
                 
    Phoenix Civic Improvement Corp. Water System Revenue            
1,100,000   5.000%, 07/01/38   Aa2/AAA/NR   1,340,757    
                 
    Pima Co. Sewer Revenue System            
1,335,000   5.000%, 07/01/26   NR/AA/AA   1,428,063    
865,000   5.000%, 07/01/27   NR/AA/AA   924,356    
    Total Water/Sewer       8,542,822    
    Total Revenue Bonds       183,777,018    
                 
    Pre-Refunded Bonds (5.9%)††            
    Pre-Refunded General Obligation Bonds (0.8%)            
    School District (0.8%)            
    Maricopa Co. Elementary School District No. 28 (Kyrene Elementary)            
250,000   5.500%, 07/01/30   Aa1/AA/NR   283,148    
                 
    Maricopa Co. Unified School District No. 48 (Scottsdale)            
1,200,000   4.750%, 07/01/30   Aa1/AA/NR   1,227,204    
                 
    Tempe High School District No. 213            
650,000   4.000%, 07/01/32   Aa1/AA/NR   711,978    
    Total Pre-Refunded General Obligation Bonds       2,222,330    
                 
    Pre-Refunded Revenue Bonds (5.1%)            
    Excise Tax (0.1%)            
    Mesa Excise Tax            
250,000   5.000%, 07/01/32   Aa3/NR/NR   267,870    
                 
    Healthcare (3.9%)            
    Arizona Health Facilities Authority (Banner Health)            
5,000,000   4.000%, 01/01/43   NR/AA-/NR   5,188,600    
                 
    Arizona Health Facilities Authority (Dignity Health)            
2,175,000   5.250%, 03/01/39   Baa1/BBB+/BBB+   2,192,139    
                 
    Maricopa Co. Hospital Revenue (Sun Health)            
1,125,000   5.000%, 04/01/25   NR/NR/NR*   1,221,480    
2,125,000   5.000%, 04/01/35   NR/NR/NR*   2,447,405    
    Total Healthcare       11,049,624    

 

 
 
 

 

 

Principal
Amount
  Pre-Refunded Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    Pre-Refunded General Obligation Bonds (continued)            
    Higher Education (0.8%)            
    Arizona Board of Regents (University of Arizona System)            
$   460,000   5.000%, 06/01/31   Aa2/AA-/NR   $      490,029    
                 
    Northern Arizona University Speed Stimulus Plan for Economic & Educational Development            
1,445,000   5.000%, 08/01/38   A2/A/NR   1,622,070    
    Total Higher Education       2,112,099    
                 
    Utility (0.1%)            
    Pinal Co. Electrical District No. 3, Electrical System Revenue Refunding            
250,000   5.250%, 07/01/36   NR/A+/NR   256,280    
                 
    Water/Sewer (0.2%)            
    Goodyear Water and Sewer Revenue            
635,000   5.250%, 07/01/31 AGMC Insured   Aa3/AA/NR   650,786    
    Total Pre-Refunded Revenue Bonds       14,336,659    
    Total Pre-Refunded Bonds       16,558,989    
    Total Municipal Bonds (cost $250,072,709)       269,136,837    

 

 

Shares   Short-Term Investment (2.0%)            
                 
5,677,731   Dreyfus Treasury Obligations Cash Management - Institutional Shares, 0.03%** (cost $5,677,731)   Aaa-mf/AAAm/NR   5,677,731    
                 
    Total Investments (cost $255,750,440 - note b)   98.1%   274,814,568    
    Other assets less liabilities   1.9   5,388,587    
    Net Assets   100.0%   $ 280,203,155    
                 
        Percent of        
    Portfolio Distribution By Quality Rating   Investments †        
    Aaa of Moody's or AAA of S&P or Fitch   7.9%        
    Pre-refunded bonds††   6.2        
    Aa of Moody's or AA of S&P or Fitch   58.2        
    A of Moody's or S&P or Fitch   23.1        
    Baa of Moody's or BBB of S&P or Fitch   3.0        
    BB+ of S&P   1.4        
    Not Rated*   0.2        
        100.0%        

 

  

 

See accompanying notes to financial statements.

 

 
 
 

 

 

    PORTFOLIO ABBREVIATIONS:            
    AGMC - Assured Guaranty Municipal Corp.            
    AMT - Alternative Minimum Tax            
    BAMAC - Build America Mutual Assurance Co.            
    BHAC - Berkshire Hathaway Assurance Corp.            
    COP- Certificates of Participation            
    FGIC - Financial Guaranty Insurance Co.            
    MAC - Municipal Assurance Corp.               
    MTEB- Multifamily Tax-Exempt Mortgage-Backed Bonds            
    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.    
      Note: 144A – Private placement subject to SEC rule 144A, which modifies a two-year holding period requirement to permit qualified institutional buyers to trade these securities among themselves, thereby significantly improving the liquidity of these securities.    

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements.

 

 
 
 

 

 

AQUILA TAX-FREE TRUST OF ARIZONA

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 $255,302,223 amounted to $19,512,345, which consisted of aggregate gross unrealized appreciation of $20,291,705 and aggregate gross unrealized depreciation of $779,360.

 

(c)Fair Value Measurements: The Trust follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Trust’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Trust’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 Trust 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 Trust’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 Trust’s investments, used to value the Trust’s net assets as of December 31, 2020:

 

Valuation Inputs+   Investments in
Securities
Level 1 – Quoted Prices – Short-Term Investment $ 5,677,731
Level 2 – Other Significant Observable Inputs - Municipal Bonds   269,136,837
Level 3 – Significant Unobservable Inputs   -
Total $ 274,814,568

 

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