AQUILA TAX-FREE TRUST OF ARIZONA
SCHEDULE OF INVESTMENTS
December 31, 2022
(unaudited)
| Principal Amount |
General Obligation Bonds (37.1%) | Ratings Moody's, S&P and Fitch |
Value | (a) | ||||
| City (4.7%) | ||||||||
| Buckeye Jackrabbit Trail Sanitary Sewer Improvement District | ||||||||
| $199,000 | 6.250%, 01/01/29 | NR/A-/NR | $202,158 | |||||
| Gilbert Improvement District No. 20 | ||||||||
| 460,000 | 5.100%, 01/01/29 | Aa1/AA-/NR | 465,166 | |||||
| Goodyear McDowell Road Commercial Corridor Improvement District | ||||||||
| 840,000 | 3.250%, 01/01/27 BAMAC Insured | Aa2/AA/NR | 857,119 | |||||
| Mesa, Arizona | ||||||||
| 425,000 | 4.000%, 07/01/32 | Aa2/AA/AAA | 444,686 | |||||
| Phoenix, Arizona | ||||||||
| 3,000,000 | 5.000%, 07/01/27 | Aa1/AA+/AAA | 3,296,790 | |||||
| Tempe Improvement District (Pier Town Lake) | ||||||||
| 1,000,000 | 5.000%, 01/01/29 | Aa2/NR/NR | 1,013,390 | |||||
| Tucson, Arizona | ||||||||
| 3,000,000 | 5.000%, 07/01/24 | Aa3/AA/AAA | 3,097,290 | |||||
| Total City | 9,376,599 | |||||||
| Community College (0.8%) | ||||||||
| Pinal Co. Community College District | ||||||||
| 500,000 | 4.000%, 07/01/33 | NR/AA-/NR | 536,515 | |||||
| 1,000,000 | 3.000%, 07/01/34 | NR/AA-/NR | 972,920 | |||||
| Total Community College | 1,509,435 | |||||||
| County (8.5%) | ||||||||
| Maricopa Co. Daisy Mountain Fire District | ||||||||
| 340,000 | 4.000%, 07/01/27 AGMC Insured | NR/AA/NR | 353,488 | |||||
| Maricopa Co. Special Health Care District | ||||||||
| 2,500,000 | 5.000%, 07/01/25 | Aa3/NR/AA- | 2,636,025 | |||||
| 3,000,000 | 5.000%, 07/01/32 | Aa3/NR/AA- | 3,313,230 | |||||
| 1,500,000 | 5.000%, 07/01/34 | Aa3/NR/AA- | 1,630,320 | |||||
| 4,345,000 | 5.000%, 07/01/34 | Aa3/NR/AA- | 4,902,116 | |||||
| Yavapai Co. Jail District | ||||||||
| 1,180,000 | 5.000%, 07/01/30 BAMAC Insured | NR/AA/AA | 1,325,175 | |||||
| 1,650,000 | 4.000%, 07/01/33 BAMAC Insured | NR/AA/AA | 1,734,051 | |||||
| Yuma Co. Free Library District | ||||||||
| 1,000,000 | 4.000%, 07/01/29 | Aa3/NR/AAA | 1,032,120 | |||||
| Total County | 16,926,525 | |||||||
| Principal Amount |
General Obligation Bonds (continued) | Ratings Moody's, S&P and Fitch |
Value | (a) | ||||
| School District (21.0%) | ||||||||
| Gila Co. Unified School District No. 10 (Payson) | ||||||||
| $1,000,000 | 5.000%, 07/01/28 | Aa2/NR/NR | $1,030,940 | |||||
| Glendale Union High School District No. 205 | ||||||||
| 525,000 | 5.000%, 07/01/27 BAMAC Insured | NR/AA/NR | 529,998 | |||||
| Maricopa Co. Elementary School District No. 1 (Phoenix) | ||||||||
| 500,000 | 4.000%, 07/01/31 BAMAC Insured | NR/AA/NR | 521,925 | |||||
| 460,000 | 4.000%, 07/01/32 BAMAC Insured | NR/AA/NR | 479,453 | |||||
| Maricopa Co. Elementary School District No. 2 (Riverside) | ||||||||
| 1,000,000 | 5.000%, 07/01/30 BAMAC Insured | NR/AA/NR | 1,128,710 | |||||
| Maricopa Co. Elementary School District No. 3 (Tempe) | ||||||||
| 500,000 | 5.000%, 07/01/30 | Aa1/NR/NR | 543,935 | |||||
| 5,615,000 | 5.000%, 07/01/31 | Aa1/NR/NR | 6,243,038 | |||||
| Maricopa Co. Elementary School District No. 8 (Osborn) | ||||||||
| 500,000 | 5.000%, 07/01/31 AGMC Insured | NR/AA/NR | 545,475 | |||||
| Maricopa Co. Elementary School District No. 25 (Liberty) | ||||||||
| 350,000 | 4.000%, 07/01/35 AGMC Insured | NR/AA/NR | 365,673 | |||||
| 300,000 | 4.000%, 07/01/36 AGMC Insured | NR/AA/NR | 310,662 | |||||
| 375,000 | 4.000%, 07/01/37 AGMC Insured | NR/AA/NR | 385,826 | |||||
| Maricopa Co. Elementary School District No. 40 (Glendale) | ||||||||
| 2,050,000 | 2.000%, 07/01/35 AGMC Insured | NR/AA/AA+ | 1,656,503 | |||||
| Maricopa Co. Elementary School District No. 62 (Union) | ||||||||
| 315,000 | 4.000%, 07/01/29 BAMAC Insured | NR/AA/NR | 331,941 | |||||
| 580,000 | 4.000%, 07/01/32 BAMAC Insured | NR/AA/NR | 610,989 | |||||
| 300,000 | 4.000%, 07/01/33 BAMAC Insured | NR/AA/NR | 315,432 | |||||
| 375,000 | 4.000%, 07/01/34 BAMAC Insured | NR/AA/NR | 393,720 | |||||
| Maricopa Co. Elementary School District No. 65 (Littleton) | ||||||||
| 125,000 | 3.000%, 07/01/35 BAMAC Insured | Aa3/AA/NR | 112,006 | |||||
| Maricopa Co. High School District No. 210 (Phoenix) | ||||||||
| 500,000 | 4.000%, 07/01/26 | Aa1/AA/AAA | 516,255 | |||||
| Maricopa Co. High School District No. 214 (Tolleson) | ||||||||
| 200,000 | 3.000%, 07/01/35 | Aaa/AA/NR | 189,384 | |||||
| Maricopa Co. Unified School District No. 4 (Mesa) | ||||||||
| 4,000,000 | 5.000%, 07/01/29 | Aa2/AA-/NR | 4,557,240 | |||||
| Maricopa Co. Unified School District No. 11 (Peoria) | ||||||||
| 1,490,000 | 4.000%, 07/01/25 | Aa3/AA-/NR | 1,491,445 | |||||
| 675,000 | 4.500%, 07/01/33 AGMC Insured | Aa3/AA/NR | 697,187 |
| Principal Amount |
General Obligation Bonds (continued) | Ratings Moody's, S&P and Fitch |
Value | (a) | ||||
| School District (continued) | ||||||||
| Maricopa Co. Unified School District No. 41 (Gilbert) | ||||||||
| $3,000,000 | 5.000%, 07/01/26 | Aa1/AA-/NR | $3,234,360 | |||||
| Maricopa Co. Unified School District No. 48 (Scottsdale) | ||||||||
| 2,350,000 | 3.000%, 07/01/34 | Aa1/AA/NR | 2,304,034 | |||||
| Maricopa Co. Unified School District No. 60 (Higley) | ||||||||
| 1,615,000 | 5.000%, 07/01/29 | Aa2/AA-/NR | 1,664,500 | |||||
| Maricopa Co. Unified School District No. 66 (Roosevelt) | ||||||||
| 910,000 | 4.000%, 07/01/31 BAMAC Insured | A1/AA/NR | 951,851 | |||||
| Maricopa Co. Unified School District No. 69 (Paradise Valley) | ||||||||
| 1,500,000 | 5.000%, 07/01/27 | Aa1/NR/AAA | 1,648,395 | |||||
| 425,000 | 4.000%, 07/01/35 | Aa1/NR/AAA | 443,942 | |||||
| Maricopa Co. Unified School District No. 80 (Chandler) | ||||||||
| 545,000 | 4.000%, 07/01/36 | Aaa/AA/NR | 560,827 | |||||
| Maricopa Co. Unified School District No. 89 (Dysart) | ||||||||
| 500,000 | 4.000%, 07/01/28 | NR/A+/AAA | 507,425 | |||||
| Navajo Co. Unified School District No. 10 (Show Low) | ||||||||
| 500,000 | 4.000%, 07/01/31 AGMC Insured | NR/AA/NR | 521,495 | |||||
| Navajo Co. Unified School District No. 32 (Blue Ridge) | ||||||||
| 400,000 | 5.000%, 07/01/29 AGMC Insured | NR/AA/NR | 434,272 | |||||
| Pima Co. Unified School District No. 6 (Marana) | ||||||||
| 955,000 | 5.000%, 07/01/25 | NR/A/NR | 965,266 | |||||
| 950,000 | 5.250%, 07/01/25 AGMC Insured | NR/AA/NR | 961,362 | |||||
| 1,000,000 | 4.250%, 07/01/32 AGMC Insured | NR/AA/NR | 1,034,010 | |||||
| 1,000,000 | 4.000%, 07/01/37 AGMC Insured | NR/AA/NR | 1,021,080 | |||||
| Pima Co. Unified School District No. 8 (Flowing Wells) | ||||||||
| 1,000,000 | 4.500%, 07/01/37 AGMC Insured | NR/AA/NR | 1,038,240 | |||||
| 250,000 | 4.000%, 07/01/28 BAMAC Insured | NR/AA/NR | 264,425 | |||||
| Pima Co. Unified School District No. 12 (Sunnyside) | ||||||||
| 1,050,000 | 4.000%, 07/01/28 BAMAC Insured | NR/AA/NR | 1,057,529 | |||||
| Santa Cruz Co. Unified School District No. 35 (Santa Cruz Valley) | ||||||||
| 300,000 | 3.000%, 07/01/36 AGMC Insured | NR/AA/NR | 283,398 | |||||
| Total School District | 41,854,148 |
| Principal Amount |
General Obligation Bonds (continued) | Ratings Moody's, S&P and Fitch |
Value | (a) | ||||
| Special District (2.1%) | ||||||||
| Eastmark Community Facilities District No. 1 | ||||||||
| $345,000 | 4.000%, 07/15/33 AGMC Insured | NR/AA/NR | $357,644 | |||||
| 360,000 | 4.000%, 07/15/34 AGMC Insured | NR/AA/NR | 372,607 | |||||
| Estrella Mountain Ranch Community Facilities District | ||||||||
| 155,000 | 5.000%, 07/15/32 AGMC Insured | NR/AA/NR | 167,088 | |||||
| Gladden Farms Phase II Community Facilities District | ||||||||
| 300,000 | 5.000%, 07/15/47 BAMAC Insured | NR/AA/NR | 311,184 | |||||
| Goodyear Community Facilities Utilities District No. 1 | ||||||||
| 500,000 | 4.000%, 07/15/28 | A1/A-/NR | 505,515 | |||||
| 460,000 | 4.000%, 07/15/32 | A1/A-/NR | 473,570 | |||||
| Merrill Ranch Community Facilities District #2 | ||||||||
| 680,000 | 6.750%, 07/15/38 | NR/BBB/NR | 692,451 | |||||
| Verrado Community Facilities Utilities District No. 1 | ||||||||
| 500,000 | 6.000%, 07/15/33 144A | NR/NR/NR* | 500,580 | |||||
| Vistancia Community Facilities District | ||||||||
| 850,000 | 4.000%, 07/15/25 BAMAC Insured | A1/AA/NR | 872,117 | |||||
| Total Special District | 4,252,756 | |||||||
| Total General Obligation Bonds | 73,919,463 | |||||||
| Revenue Bonds (55.9%) | ||||||||
| Airport (7.1%) | ||||||||
| Phoenix Civic Improvement Corp. Airport Bonds | ||||||||
| 4,000,000 | 4.000%, 07/01/40 | A1/A+/NR | 3,879,560 | |||||
| 2,595,000 | 5.000%, 07/01/27 AMT | Aa3/AA-/NR | 2,755,553 | |||||
| 185,000 | 5.000%, 07/01/30 AMT | Aa3/AA-/NR | 195,286 | |||||
| 3,850,000 | 5.000%, 07/01/31 AMT | Aa3/AA-/NR | 4,057,130 | |||||
| 2,900,000 | 5.000%, 07/01/31 AMT | Aa3/AA-/NR | 3,087,427 | |||||
| 200,000 | 5.000%, 07/01/33 AMT | Aa3/AA-/NR | 212,060 | |||||
| Total Airport | 14,187,016 |
| Principal Amount |
Revenue Bonds (continued) | Ratings Moody's, S&P and Fitch |
Value | (a) | ||||
| Charter Schools (3.9%) | ||||||||
| Arizona Industrial Development Authority (Basis Schools) | ||||||||
| $240,000 | 5.000%, 07/01/37 State Enhanced | NR/AA-/NR | $249,362 | |||||
| Arizona Industrial Development Authority (Candeo Schools) | ||||||||
| 500,000 | 3.375%, 07/01/41 State Enhanced | NR/AA-/NR | 417,015 | |||||
| Arizona Industrial Development Authority (Equitable Schools) | ||||||||
| 1,000,000 | 4.000%, 11/01/36 | NR/A/NR | 959,820 | |||||
| 2,000,000 | 4.000%, 11/01/38 | NR/A/NR | 1,883,440 | |||||
| 2,000,000 | 4.000%, 11/01/40 | NR/A/NR | 1,842,260 | |||||
| Arizona Industrial Development Authority (Greathearts Academies) | ||||||||
| 1,000,000 | 3.000%, 07/01/37 State Enhanced | NR/AA-/NR | 840,490 | |||||
| Maricopa Co. Industrial Development Authority (Great Hearts Arizona Projects) | ||||||||
| 250,000 | 5.000%, 07/01/26 State Enhanced | NR/AA-/NR | 262,535 | |||||
| 315,000 | 5.000%, 07/01/37 State Enhanced | NR/AA-/NR | 327,159 | |||||
| Phoenix Industrial Development Authority (Macombs Facility Project) | ||||||||
| 315,000 | 5.000%, 07/01/33 | NR/BBB-/NR | 331,834 | |||||
| 325,000 | 4.000%, 07/01/34 | NR/BBB-/NR | 310,001 | |||||
| 315,000 | 4.000%, 07/01/35 | NR/BBB-/NR | 295,961 | |||||
| Total Charter Schools | 7,719,877 | |||||||
| Excise Tax (7.3%) | ||||||||
| Buckeye Excise Tax | ||||||||
| 400,000 | 4.000%, 07/01/36 | NR/AA/AA | 410,684 | |||||
| Buckeye Roosevelt Street Improvement District | ||||||||
| 85,000 | 4.000%, 01/01/32 | NR/A-/NR | 85,408 | |||||
| Cottonwood Pledged Revenue Obligations | ||||||||
| 500,000 | 5.000%, 07/01/30 AGMC Insured | NR/AA/NR | 525,970 | |||||
| Flagstaff Pledged Revenue | ||||||||
| 1,395,000 | 4.250%, 07/01/33 | NR/AA/NR | 1,459,616 | |||||
| Gila Co. Pledged Revenue Obligations | ||||||||
| 555,000 | 4.000%, 07/01/30 | NR/AA/NR | 588,256 | |||||
| Marana Pledged Excise Tax | ||||||||
| 275,000 | 4.000%, 07/01/30 | NR/AA/NR | 276,235 | |||||
| Phoenix Civic Improvement Corp. (Civic Plaza) | ||||||||
| 2,000,000 | 5.500%, 07/01/27 BHAC/FGIC Insured | Aa1/AA+/NR | 2,230,960 | |||||
| 2,000,000 | 5.500%, 07/01/30 BHAC/FGIC Insured | Aa1/AA+/NR | 2,360,200 | |||||
| 1,000,000 | 5.500%, 07/01/23 NPFG/FGIC Insured | Aa2/AA/NR | 1,012,040 | |||||
| 2,300,000 | 5.500%, 07/01/33 NPFG/FGIC Insured | Aa2/AA/NR | 2,785,691 | |||||
| Santa Cruz Co. Jail District | ||||||||
| 1,655,000 | 5.000%, 07/01/28 AGMC Insured | NR/AA/NR | 1,784,504 | |||||
| 885,000 | 5.000%, 07/01/31 AGMC Insured | NR/AA/NR | 946,596 | |||||
| Total Excise Tax | 14,466,160 |
| Principal Amount |
Revenue Bonds (continued) | Ratings Moody's, S&P and Fitch |
Value | (a) | ||||
| Healthcare (5.8%) | ||||||||
| Maricopa Co. Industrial Development Authority (Banner Health) | ||||||||
| $ 500,000 | 4.000%, 01/01/48 | NR/AA-/AA- | $ 460,435 | |||||
| 1,000,000 | 5.000%, 01/01/48 | NR/AA-/AA- | 1,028,080 | |||||
| Maricopa Co. Industrial Development Authority (HonorHealth) | ||||||||
| 2,250,000 | 4.125%, 09/01/38 | A2/NR/A+ | 2,243,723 | |||||
| Phoenix Industrial Development Authority (Mayo Clinic) VRDO*** | ||||||||
| 2,650,000 | 3.540%, 11/15/52 | Aa2/AA/NR | 2,650,000 | |||||
| Pima Co. Industrial Development Authority (Tucson Medical Center) | ||||||||
| 1,150,000 | 5.000%, 04/01/33 | NR/A/NR | 1,261,251 | |||||
| 880,000 | 4.000%, 04/01/37 | NR/A/NR | 851,022 | |||||
| 250,000 | 3.000%, 04/01/51 | NR/A/NR | 177,788 | |||||
| Yavapai Co. Industrial Development Authority (Yavapai Regional Medical Center) | ||||||||
| 1,000,000 | 5.250%, 08/01/33 | A2/NR/A+ | 1,007,910 | |||||
| Yuma Industrial Development Authority (Yuma Regional Medical Center) | ||||||||
| 1,635,000 | 5.000%, 08/01/23 | NR/A/NR | 1,650,189 | |||||
| 200,000 | 5.000%, 08/01/32 | NR/A/NR | 203,166 | |||||
| Total Healthcare | 11,533,564 | |||||||
| Higher Education (7.5%) | ||||||||
| Arizona Board of Regents (Arizona State University System) Green Bonds | ||||||||
| 1,500,000 | 5.000%, 07/01/36 | Aa2/AA/NR | 1,721,430 | |||||
| Arizona Board of Regents (Arizona State University System) VRDO*** | ||||||||
| 5,630,000 | 3.550%, 07/01/34 | Aa2/AA/NR | 5,630,000 | |||||
| Arizona Board of Regents (Northern Arizona University) Speed Stimulus Plan for Economic & Educational Development | ||||||||
| 2,090,000 | 5.000%, 08/01/29 AGMC Insured | A1/AA/NR | 2,344,249 | |||||
| Arizona Board of Regents (University of Arizona System) Speed Stimulus Plan for Economic & Educational Development | ||||||||
| 1,000,000 | 3.125%, 08/01/39 | Aa3/A+/NR | 842,650 | |||||
| Arizona Board of Regents (University of Arizona System) | ||||||||
| 105,000 | 4.000%, 06/01/38 | Aa2/AA-/NR | 106,274 | |||||
| Arizona Industrial Development Authority (North Carolina Central University Student Housing) | ||||||||
| 250,000 | 4.000%, 06/01/34 BAMAC Insured | Baa3/AA/NR | 255,965 | |||||
| 700,000 | 4.000%, 06/01/39 BAMAC Insured | Baa3/AA/NR | 691,999 | |||||
| Phoenix Industrial Development Authority (Downtown Phoenix Student Housing) | ||||||||
| 200,000 | 5.000%, 07/01/26 | Baa3/NR/NR | 205,800 | |||||
| 400,000 | 5.000%, 07/01/33 | Baa3/NR/NR | 407,880 | |||||
| 1,250,000 | 5.000%, 07/01/42 | Baa3/NR/NR | 1,230,125 |
| Principal Amount |
Revenue Bonds (continued) | Ratings Moody's, S&P and Fitch |
Value | (a) | ||||
| Higher Education (continued) | ||||||||
| Phoenix Industrial Development Authority (Downtown Phoenix Student Housing II) | ||||||||
| $100,000 | 5.000%, 07/01/26 | Baa3/NR/NR | $102,900 | |||||
| 250,000 | 5.000%, 07/01/27 | Baa3/NR/NR | 258,420 | |||||
| 150,000 | 5.000%, 07/01/28 | Baa3/NR/NR | 155,607 | |||||
| 200,000 | 5.000%, 07/01/30 | Baa3/NR/NR | 207,168 | |||||
| 300,000 | 5.000%, 07/01/32 | Baa3/NR/NR | 308,361 | |||||
| Pima Co. Community College District | ||||||||
| 500,000 | 4.000%, 07/01/38 | Aa3/NR/AA- | 505,790 | |||||
| Total Higher Education | 14,974,618 | |||||||
| Housing (1.8%) | ||||||||
| Arizona Industrial Development Authority Green Bond MTEB (Chandler Village Apartments Project) | ||||||||
| 4,824,102 | 2.120%, 07/01/37 FNMA Insured Series 2020 | Aaa/NR/NR | 3,565,735 | |||||
| Lease (2.5%) | ||||||||
| Arizona Board of Regents (Northern Arizona University) COP | ||||||||
| 600,000 | 5.000%, 09/01/27 | A2/A/NR | 601,038 | |||||
| Nogales Municipal Development Authority, Inc. | ||||||||
| 845,000 | 4.000%, 06/01/36 | NR/AA-/NR | 860,345 | |||||
| 615,000 | 5.000%, 06/01/28 AGMC Insured | NR/AA/NR | 656,734 | |||||
| 810,000 | 4.000%, 06/01/33 AGMC Insured | NR/AA/NR | 849,690 | |||||
| 2,000,000 | 4.000%, 06/01/39 AGMC Insured | NR/AA/NR | 2,011,400 | |||||
| State of Arizona COP | ||||||||
| 100,000 | 5.000%, 09/01/27 | Aa2/AA-/NR | 105,610 | |||||
| Total Lease | 5,084,817 | |||||||
| Pollution Control (0.7%) | ||||||||
| Maricopa Co. Pollution Control (El Paso Electric Co.) | ||||||||
| 375,000 | 3.600%, 02/01/40 | Baa2/NR/BBB+ | 328,309 | |||||
| 250,000 | 3.600%, 04/01/40 | Baa2/NR/BBB+ | 218,668 | |||||
| Maricopa Co. Pollution Control (Southern California Edison Co.) | ||||||||
| 1,000,000 | 2.400%, 06/01/35 | A3/A-/BBB+ | 761,430 | |||||
| Total Pollution Control | 1,308,407 | |||||||
| Resource Recovery (4.7%) | ||||||||
| 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 | 4,222,333 | |||||
| 3,000,000 | 5.000%, 09/01/52 AMT | A1/A+/NR | 3,131,910 | |||||
| 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 | 1,473,075 | |||||
| Yavapai Co. Industrial Development Authority, (Waste Management Inc. Project) | ||||||||
| 520,000 | 2.200%, 03/01/28 AMT (Mandatory Put Date 06/03/24) | NR/A-/NR | 502,408 | |||||
| Total Resource Recovery | 9,329,726 |
| Principal Amount |
Revenue Bonds (continued) | Ratings Moody's, S&P and Fitch |
Value | (a) | ||||
| Sales Tax (3.3%) | ||||||||
| Arizona Sports & Tourism Authority (Multipurpose Stadium Facility Project) | ||||||||
| $6,000,000 | 5.000%, 07/01/30 BAMAC Insured | A1/AA/A | $6,686,220 | |||||
| Senior Living Facilities (1.1%) | ||||||||
| Arizona Industrial Development Authority, Second Tier (Great Lakes Senior Living Communities) | ||||||||
| 620,000 | 5.000%, 01/01/28 | NR/CCC+/NR | 494,735 | |||||
| 555,000 | 5.000%, 01/01/29 | NR/CCC+/NR | 436,530 | |||||
| 1,205,000 | 5.000%, 01/01/30 | NR/CCC+/NR | 922,500 | |||||
| 655,000 | 4.000%, 01/01/33 | NR/CCC+/NR | 415,624 | |||||
| Total Senior Living Facilities | 2,269,389 | |||||||
| Utility (5.3%) | ||||||||
| Greater Arizona Development Authority Revenue | ||||||||
| 500,000 | 5.000%, 08/01/28 AGMC Insured | A1/AA/NR | 509,875 | |||||
| Mesa Utility System | ||||||||
| 5,000,000 | 5.000%, 07/01/36 | Aa3/A+/NR | 5,821,250 | |||||
| Salt Verde Finance Corp. Gas Revenue | ||||||||
| 3,000,000 | 5.250%, 12/01/28 | A3/BBB+/NR | 3,151,080 | |||||
| Yuma Utility System | ||||||||
| 1,000,000 | 4.000%, 07/01/34 BAMAC Insured | NR/AA/AA- | 1,044,690 | |||||
| Total Utility | 10,526,895 | |||||||
| Water/Sewer (4.9%) | ||||||||
| Glendale Water & Sewer Revenue Refunding Senior Lien | ||||||||
| 6,120,000 | 3.000%, 07/01/24 | A1/AA/NR | 6,142,093 | |||||
| Phoenix Civic Improvement Corp. Wastewater Revenue | ||||||||
| 1,500,000 | 5.500%, 07/01/24 NPFG/FGIC Insured | Aa2/AAA/NR | 1,559,970 | |||||
| Pima Co. Sewer System Revenue Refunding | ||||||||
| 2,000,000 | 5.000%, 07/01/26 | NR/AA/AA | 2,156,240 | |||||
| Total Water/Sewer | 9,858,303 | |||||||
| Total Revenue Bonds | 111,510,727 | |||||||
| Pre-Refunded Bonds (4.1%)†† | ||||||||
| Pre-Refunded General Obligation Bonds (0.7%) | ||||||||
| City (0.1%) | ||||||||
| Glendale, Arizona | ||||||||
| 200,000 | 5.000%, 07/01/33 | NR/AA/AAA | 224,370 | |||||
| School District (0.1%) | ||||||||
| Maricopa Co. Elementary School District No. 28 (Kyrene Elementary) | ||||||||
| 250,000 | 5.500%, 07/01/30 | Aaa/AA/NR | 253,158 |
| Principal Amount |
Pre-Refunded Bonds (continued) | Ratings Moody's, S&P and Fitch |
Value | (a) | ||||
| Special District (0.5%) | ||||||||
| Estrella Mountain Ranch Community Facilities District | ||||||||
| $845,000 | 5.000%, 07/15/32 AGMC Insured | NR/AA/NR | $927,751 | |||||
| Goodyear Community Facilities Utilities District No. 1 | ||||||||
| 40,000 | 4.000%, 07/15/32 | NR/NR/NR* | 41,763 | |||||
| Total Special District | 969,514 | |||||||
| Total Pre-Refunded General Obligation Bonds | 1,447,042 | |||||||
| Pre-Refunded Revenue Bonds (3.4%) | ||||||||
| Excise Tax (0.2%) | ||||||||
| Scottsdale Municipal Property Corp. | ||||||||
| 375,000 | 5.000%, 07/01/34 | Aa1/AAA/AA+ | 396,424 | |||||
| Healthcare (2.5%) | ||||||||
| Arizona Health Facilities Authority (Banner Health) | ||||||||
| 2,000,000 | 5.000%, 01/01/44 | NR/AA-/NR | 2,042,360 | |||||
| Maricopa Co. Hospital Revenue (Sun Health) | ||||||||
| 705,000 | 5.000%, 04/01/25 | NR/NR/NR* | 716,999 | |||||
| 2,125,000 | 5.000%, 04/01/35 | NR/NR/NR* | 2,182,163 | |||||
| Total Healthcare | 4,941,522 | |||||||
| Higher Education (0.7%) | ||||||||
| Northern Arizona University Speed Stimulus Plan for Economic & Educational Development | ||||||||
| 1,445,000 | 5.000%, 08/01/38 | A2/A/NR | 1,462,311 | |||||
| Total Pre-Refunded Revenue Bonds | 6,800,257 | |||||||
| Total Pre-Refunded Bonds | 8,247,299 | |||||||
| Total Municipal Bonds (cost $200,920,090) | 193,677,489 | |||||||
| Shares | Short-Term Investment (1.2%) | |||||||
| 2,263,661 | Dreyfus Treasury Obligations Cash Management - Institutional Shares, 4.17%** (cost $2,263,661) |
Aaa-mf/AAAm/NR | 2,263,661 | |||||
| Total Investments (cost $203,183,751-note b) |
98.3% | 195,941,150 | ||||||
| Other assets less liabilities | 1.7 | 3,468,834 | ||||||
| Net Assets | 100.0% | $199,409,984 | ||||||
| Percent of | ||||||||
| Portfolio Distribution By Quality Rating | Investments† | |||||||
| Aaa of Moody's or AAA of S&P or Fitch | 8.7% | |||||||
| Pre-refunded bonds†† | 4.3 | |||||||
| Aa of Moody's or AA of S&P or Fitch | 66.4 | |||||||
| A of Moody's or S&P or Fitch | 16.5 | |||||||
| Baa of Moody's or BBB of S&P or Fitch | 2.6 | |||||||
| CCC of S&P | 1.2 | |||||||
| Not Rated* | 0.3 | |||||||
| 100.0% |
| 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. | ||||||||
| FNMA - Federal National Mortgage Association | ||||||||
| MTEB- Multifamily Tax-Exempt Mortgage-Backed Bonds | ||||||||
| NPFG - National Public Finance Guarantee | ||||||||
| NR - Not Rated | ||||||||
| VRDO - Variable Rate Demand Obligation |
| * | 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 four credit ratings if a credit rating were to be assigned by a NRSRO. | ||||
| ** | The rate is an annualized seven-day yield at period end. | ||||
| *** | Variable rate demand obligations (VRDOs) are payable upon demand within the same day for securities with daily liquidity or seven days for securities with weekly liquidity. | ||||
| † | 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, 2022
(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, 2022, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $202,689,633 amounted to $6,748,483, which consisted of aggregate gross unrealized appreciation of $2,505,953 and aggregate gross unrealized depreciation of $9,254,436. |
| (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, 2022:
| Valuation Inputs+ | Investments in Securities | |
| Level 1 – Quoted Prices – Short-Term Investment | $ | 2,263,661 |
| Level 2 – Other Significant Observable Inputs - Municipal Bonds | 193,677,489 | |
| Level 3 – Significant Unobservable Inputs | — | |
| Total | $ | 195,941,150 |
+ See schedule of investments for a detailed listing of securities.