01/16/2014

2014 Utah Municipal Market Outlook

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The National Perspective
Over the course of 2014, a number of economic and policy variables are likely to impact the municipal bond market.  Consensus expectations of the Federal Reserve indicate a gradual tapering of the Fed’s asset purchase program.  While the initial market response may be negative, over time more attractive valuations may draw buyers to the market.  The long end of the yield curve has flattened while we’ve seen a steepening on the short end.  Estimates of the 2014 year-end yield on the 10-year Treasury fall near 3.50%.  Municipal bonds remain attractive relative to Treasuries.  In this environment, the...

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01/16/2014

2014 Arizona Municipal Market Outlook

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The National Perspective
Over the course of 2014, a number of economic and policy variables are likely to impact the municipal bond market.  Consensus expectations of the Federal Reserve indicate a gradual tapering of the Fed’s asset purchase program.  While the initial market response may be negative, over time more attractive valuations may draw buyers to the market.  The long end of the yield curve has flattened while we’ve seen a steepening on the short end.  Estimates of the 2014 year-end yield on the 10-year Treasury fall near 3.50%.  Municipal bonds remain attractive relative to Treasuries.  In this environment, the...

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01/16/2014

2014 Hawaii Municipal Market Outlook

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The National Perspective
Over the course of 2014, a number of economic and policy variables are likely to impact the municipal bond market.  Consensus expectations of the Federal Reserve indicate a gradual tapering of the Fed’s asset purchase program.  While the initial market response may be negative, over time more attractive valuations may draw buyers to the market.  The long end of the yield curve has flattened while we’ve seen a steepening on the short end.  Estimates of the 2014 year-end yield on the 10-year Treasury fall near 3.50%.  Municipal bonds remain attractive relative to Treasuries.  In this environment, the...

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01/12/2014

Our Municipal Bond Fund Strategy in 2013

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The bond markets in 2013 were roiled by comments made in April by then Chairman of the Federal Reserve, Ben Bernanke, regarding future tapering of the Fed’s bond buying program.  Market participants responded to those comments, touching off a wave of redemptions and declining prices in the fixed income markets.  The events impacting the bond market in 2013 demonstrated the volatility that may be witnessed from time to time in an asset class often perceived as being relatively conservative.

The investment strategy implemented in managing each of the Aquila Group of Funds single-state municipal bond funds is focused on an...

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12/31/2013

We Express our Appreciation to Three Retiring Trustees

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We would like to express our appreciation to three trustees who have recently retired from fund boards after having served shareholders for many years.

 

Tucker Hart Adams joined the board of Aquila Tax-Free Fund of Colorado in 1989, and in 1993 joined the board of the equity fund, which is now Aquila Three Peaks Opportunity Growth Fund, serving as Chair of that board since 2005.  She also served on the boards of Aquila Tax-Free Trust of Arizona, Aquila Tax-Free Fund...

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11/27/2013

Oregon economic improvement reaching across the state

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Oregon is experiencing stronger growth in employment according to the December 2013 report from the Oregon Office of Economic Analysis released in late November, although the pace of that growth varies across the state.  Bend and Medford were Oregon’s hardest hit housing markets, and both have begun adding jobs again, indicating that an economic recovery is extending across the state.  With continued improvement in the housing market, and related economic activity, it is expected that job growth in the cities and counties of western Oregon will also improve.

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08/17/2013

Mutual Funds and Yield Calculations

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The rate of income provided by a bond fund is affected by several variables and may be calculated in a number of ways.

Investors looking for an income-producing investment may choose a mutual fund which invests in bonds. There are a number of distinctions between bond funds which should be considered, one of which is the rate of income provided.

Fund Holdings and the Markets Change Daily

A mutual fund is a collection of many individual securities in which a number of individual investors share ownership. The investment manager of a bond fund may continually buy and sell individual securities as money...

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06/30/2013

Arriving at Equity by Way of High Yield

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From the vantage point of the high yield corporate bond market, we believe we have an uncommon perspective on equity investment ideas.

Our perspective on the high yield market

In managing Aquila Three Peaks High Income Fund, a mutual fund that invests in high yield corporate bonds, we monitor and conduct research in the high yield corporate bond market on a daily basis. Over time, we have observed that the high yield corporate bond market appears to serve as a leading-indicator, reflecting broad-based transitions in investor sentiment that are later reflected in the...

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05/25/2013

High Yield – A Different Approach

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Within the high yield corporate bond market, it is feasible to implement a conservative investment strategy.

The high yield corporate bond market consists of bonds issued with a rating below investment grade, and those bonds that have been downgraded to a rating below investment grade.

Aquila Three Peaks High Income Fund pursues the investment objectives of the Fund while implementing a conservative high yield investment strategy. To explain the conservative strategy, and why an investor might find it appealing, let’s first look at characteristics of the high yield asset class relative to other asset classes.

High yield versus equity

Research conducted over...

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