06/27/2014

Long History of Local Investing

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Portfolio managers make the daily decisions that add up to the investment performance that investors see year after year. For our 30th anniversary series, we spoke to our longest-serving portfolio manager, Todd Curtis, who has managed the Aquila Tax-Free Trust of Arizona since its inception in 1986.

How did you begin working with Aquila?

Aquila had identified Valley National Bank, headquartered in Phoenix, as the sub-advisor for their Arizona fund. At the time, I was managing municipal bond investments at Valley National Bank, so I was the...

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06/20/2014

Finding a Home for Cash in the Municipal Bond Market

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Typically, during the months of June and July, a high volume of municipal bonds will mature or be called, leaving investors to roll those proceeds into other municipal bonds. This year, due to a recent decline in new municipal bond issuance, investors attempting to roll over maturing or called debt may be presented with some challenges.

In an effort to maintain balanced budgets, and during a period when voters have become more selective about approving new borrowing, states and municipalities have been issuing fewer new bonds. Based on data from Thomson Reuters through May 31st, year-to-date issuance has declined by...

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06/16/2014

Kentucky Hospital Bonds: Searching for Opportunity amid Turmoil

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During the third quarter of 2013, in an unsettled national municipal bond market environment, hospital bonds saw an increase in selling pressure precipitated by uncertainty surrounding the roll-out of the Affordable Care Act. During that same time period, the United States Department of Justice filed a lawsuit against King’s Daughters Medical Center in Ashland, Kentucky for purportedly submitting false claims to Medicare – bringing further scrutiny to the sector in the state of Kentucky. The hospital charged-off over $40 million in the third quarter due to the impending settlement, and national ratings services consequently downgraded approximately $240 million of...

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04/30/2014

Aquila Three Peaks Opportunity Growth Fund: Fundamental Analysis Matters

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You know you want to participate in the equity market, but how?

A growing number of investors recognize that it may be time to increase their allocation to equity.  What may be less clear is determining how to go about positioning assets in the equity market.

Consider this:  for several years, the Federal Reserve has been providing liquidity to the U.S. economy – liquidity that, to some degree, has contributed to the performance of the equity market.  If boats rose on the Fed’s tide of liquidity, what happens when that tide recedes?

Fundamental analysis matters.

Broad-based passive equity investments,...

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04/30/2014

We Interview Anne Mills, Retiring Trustee

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Looking Out for Shareholders

Aquila’s locally-based trustees play a crucial role in advocating on behalf of fund shareholders. As Anne J. Mills looks back on her tenure as a trustee on seven Aquila fund boards, we talked to her about what trustees do and what she’s seen in almost 30 years as a trustee.

How did you become involved with the Aquila Group of Funds?

Lacy Herrmann [Aquila’s founder] and I met in the mid-1980s, when we were both running for president of our college’s alumni board.  He...

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04/15/2014

Are You Free of Your Tax Bill for the Year?

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As you put the 2013 tax season behind you, think about how much of what you earn is allocated to pay taxes each year. This year, Americans will pay a total of $4.5 trillion, or 30.2% of their income in taxes. Consider how many days of work will be dedicated to paying that bill. Every year the Tax Foundation1 establishes Tax Freedom Day®, which marks the day when the nation has earned enough money collectively to pay its total tax bill. For 2014, Tax Freedom Day® falls on April 21st; three days later than 2013 due to the country’s...

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04/08/2014

Municipal Bonds: Better Than You Think

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For many years, the municipal bond market has provided investors with the benefit of earning income that is generally exempt from both federal and state income taxes. While several headline topics have raised concerns among municipal bond investors in recent years, our evaluation of current economic and market factors indicates to us that the condition of the municipal bond market may be better than you think.

Our new white paper, Municipal Bonds Better Than You Think, takes a look at the economic and market factors that have influenced the municipal bond market over the past several years, and reviews...

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04/04/2014

One Hundred Years of the Federal Income Tax

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It was 100 years ago this year that the first Form 1040 was sent out to taxpayers as ratification of the Sixteenth Amendment to the US Constitution made it possible for the federal government to tax personal incomes.

The new tax started at 1% on personal incomes of more than $3,000 (over $71,000 in today’s dollars) for single filers or $4,000 for couples and included a surtax of 6% on incomes over $500,000. Taxpayers were required to complete the new form and submit it to local tax collectors for review by...

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04/03/2014

We Express our Appreciation to a Retiring Trustee

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We would like to express our appreciation to a trustee who has recently retired from various fund boards after having served shareholders for many years.

Anne Mills became a trustee on the board of Aquila Tax-Free Trust of Arizona at the inception of the fund in 1986, and joined the boards of Aquila Tax-Free Fund of Colorado and Aquila Churchill Tax-Free Fund of Kentucky when both funds were launched in 1987.  In later years, she also joined the boards of Aquila Narragansett Tax-Free Income Fund and...

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03/28/2014

Celebrating Our 30th Anniversary

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Our History, People and Distinctive Strategy

Diana P. Herrmann, President & CEO, Aquila Investment Management LLC

Lacy Herrmann, Aquila’s founder, was one of the earlier pioneers in money market funds beginning in the mid-1970s. By the early 1980s, a handful of state-specific municipal bond mutual funds were being offered in states with large populations and higher tax rates, such as California, New York and Massachusetts.  Mr. Herrmann was intrigued with the concept of launching similar funds in other states.

Since the...

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