kentucky

Aquila Churchill Tax-Free Fund of Kentucky

Overview
Performance
Distributions
Fees & Expenses
Portfolio Management

Description & Objective

Aquila Churchill Tax-Free Fund of Kentucky is a municipal bond mutual fund designed especially for Kentucky residents.

The Fund seeks to provide as high a level of current income exempt from Kentucky state and regular federal income taxes as is consistent with preservation of capital by investing in municipal obligations which pay interest exempt from state and regular federal income taxes. To achieve this objective, the Fund will invest primarily in tax-free municipal obligations of investment grade quality – the kind of securities that finance schools, highways, utilities, airports, hospitals, and water and sewer facilities in Kentucky.

Investor Profile

Kentucky taxpayers who can benefit from income that is exempt from federal, and state income taxes. For certain investors, some dividends may be subject to federal and state taxes, including Alternative Minimum Tax (AMT). Please consult your professional tax advisor. The Fund is not appropriate for tax-deferred retirement plans, such as IRAs.

How to Invest

You may invest in any of the Aquila Group of Funds through your professional financial advisor at the public offering price as described in the the prospectus, or by completing the Fund’s application. The Fund offers both Front-Payment Class Shares (Class A Shares) or Level-Payment Class Shares (Class C Shares). The maximum sales charge included in the offering price of Class A Shares varies by fund. Please see the prospectus for details, or fund-specific information on this site. Class C Shares do not have a sales charge, but do have a contingent deferred sales charge (CDSC) of 1% if a redemption occurs within the first 12 months of purchase. Class I and Class Y shares are available to investors only through a professional financial advisor or a financial institution. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

How to Redeem

You may redeem all or part of your investment on any business day at the next-determined Net Asset Value of the Fund’s shares after acceptance of your redemption request. You should be aware that investment returns and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The prospectus outlines a number of different ways you may redeem your shares. A 1% contingent deferred sales charge (CDSC) applies to Class C Shares redeemed within the first 12 months of purchase.

Board of Trustees

  • John C. Lucking, Chair - President, Econ-Linc, an economic consulting firm, since 1995; formerly Consulting Economist, Bank One Arizona and Chief Economist, Valley National Bank; member, Arizona’s Joint Legislative Budget Committee Economic Advisory Panel and the Western Blue Chip Economic Forecast Panel; Board member, Northern Arizona University Foundation since 1997; NAU Foundation Board, Chairman of Investment Committee for the past five years; member, various historical, civic and economic associations.  Other Directorships held by Trustee  –  John C. Lincoln Health Foundation.

  • Diana P. Herrmann, President – Vice Chair and Chief Executive Officer of Aquila Management Corporation, Founder and Sponsor of the Aquila Group of Funds and parent of Aquila Investment Management LLC, Manager, since 2004, President since 1997, Chief Operating Officer, 1997-2008, a Director since 1984, Secretary since 1986 and previously its Executive Vice President, Senior Vice President or Vice President, 1986-1997; Chief Executive Officer and Vice Chair since 2004, President and Manager since 2003, and Chief Operating Officer (2003-2008), of the Manager; Chair, Vice Chair, President, Executive Vice President and/or Senior Vice President of funds in the Aquila Group of Funds since 1986; Director of the Distributor since 1997; Governor, Investment Company Institute (the U.S. mutual fund industry trade organization dedicated to protecting shareholder interests and educating the public about investing) for various periods since 2004, and Chair of its Small Funds Committee, 2004-2009; active in charitable and volunteer organizations. Other Directorships held by Trustee – ICI Mutual Insurance Company, a Risk Retention Group (2006-2009 and 2010-2013); Vice Chair and Trustee of Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 2004-2012.

  • Ernest Calderon- Partner, Ridenour, Heinton & Lewis, a Phoenix law firm, since 2012;  Calderon Law Offices, 2004-2012; Equity Partner, Jennings, Strouss & Salmon, PLC, 1992-2004; Regent emeritus and President emeritus Arizona Board of Regents;  Adjunct Professor, Northern Arizona University; served six Arizona governors by appointment; Past President, Grand Canyon Council of Boy Scouts of America; Past President, State Bar of Arizona, 2003-2004; member, American Law Institute.

  • Thomas A. Christopher – Senior partner of Robinson, Hughes & Christopher, C.P.A.s, P.S.C., since 1977; Chairman of the Board, A Good Place for Fun, Inc., a sports facility, since 1987; President, 1987-2012; Director, Sunrise Children’s Services Inc., 2010-2013; Director, Global Outreach International, since 2011; currently or formerly active with various professional and community organizations.

  • Gary C. Cornia – Professor, Marriott School of Management, Brigham Young University, 1980-present; Dean, Marriott School of Management, 2008-2013; Director, Romney Institute of Public Management, Marriott School of Management, 2004–2008; Past President, National Tax Association; Fellow, Lincoln Institute of Land Policy, 2002-present; Associate Dean, Marriott School of Management, Brigham Young University, 1991-2000; member, Utah Governor’s Tax Review Committee, 1993-2009.   Other Directorships held by Trustee – Utah Foundation, Salt Lake City, UT; formerly director, Lincoln Institute of Land Policy, Cambridge, MA.

  • David A. Duffy -Retired; Founder and Chairman of Duffy & Shanley, Inc., a marketing communications firm, 1973-2003; past Chairman of the Rhode Island Convention Center Authority, 2003-2011; past National Chairman, National Conference for Community and Justice (NCCJ); past Vice Chair, Providence College Board of Trustees; officer or director of numerous civic and non-profit organizations. Other Directorships held by Trustee – Formerly Delta Dental of Rhode Island.

  • Grady Gammage, Jr.- Founding partner, Gammage & Burnham, PLC, a law firm, Phoenix, Arizona, since 1983; director, Central Arizona Water Conservation District, 1992-2004; director, Arizona State University Foundation since 1998; Senior Fellow, Morrison Institute for Public Policy; active with Urban Land Institute.

  • Lyle W. Hillyard – President of the law firm of Hillyard, Anderson & Olsen, Logan, Utah, since 1967; member of Utah Senate, 1985 to present, in the following positions: President, 2000, Senate Majority Leader, 1999-2000, Assistant Majority Whip, 1995-1998; served as Chairman of the following Utah Senate Committees: Tax and Revenue, Senate Judiciary Standing, Joint Executive Appropriations, and Senate Rules; currently serves as Co-Chair, Joint Executive Appropriations.

  • Glenn P. O’Flaherty - Chief Financial Officer and Chief Operating Officer of Lizard Investors, LLC, 2008; Co-Founder, Chief Financial Officer and Chief Compliance Officer of Three Peaks Capital Management, LLC, 2003-2005; Vice President – Investment Accounting, Global Trading and Trade Operations, Janus Capital Corporation, and Chief Financial Officer and Treasurer, Janus Funds, 1991- 2002.  Other Directorships held by Trustee - Trustee of Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 2009-2012.

  • John J. Partridge – Founding Partner, Partridge Snow & Hahn LLP, a law firm, Providence, Rhode Island, since 1988, Senior Counsel, since January 1, 2007; Assistant Secretary – Advisor to the Board,, Aquila Narragansett Tax-Free Income Fund, 2005-2008, Trustee 2002-2005; director or trustee of various educational, civic and charitable organizations, including Ocean State Charities Trust and The Pawtucket Foundation.

  • James R. Ramsey – President, University of Louisville since November 2002; Professor of Economics, University of Louisville, 1999-present; Kentucky Governor’s Senior Policy Advisor and State Budget Director, 1999-2002; Vice Chancellor for Finance and Administration, the University of North Carolina at Chapel Hill, 1998 to 1999; previously Vice President for Finance and Administration at Western Kentucky University, State Budget Director for the Commonwealth of Kentucky, Chief State Economist and Executive Director for the Office of Financial Management and Economic Analysis for the Commonwealth of Kentucky, Adjunct Professor at the University of Kentucky, Associate Professor at Loyola University-New Orleans and Assistant Professor at Middle Tennessee State University. Other Directorships held by Trustee: Community Bank and Trust, Pikeville, KY and Texas Roadhouse Inc.

  • Laureen L. White – President, Greater Providence Chamber of Commerce, since 2005, Executive Vice President 2004-2005 and Senior Vice President, 1989-2002; Executive Counselor to the Governor of Rhode Island for Policy and Communications, 2003-2004.

  • Nominating Committee charter

Disclosures

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Fund Facts

  • Fund symbol: CHTFX
  • CUSIP: 03842A707
  • Inception date: 5/21/1987
  • Total net assets ($millions) as of 09/30/2014: $233.2

Qualified for sale in:

KY, AL, AZ, CA, CO, FL, GA, HI, IL, IN, MN, MO, NJ, NY, OH, PA, RI, TN, TX, UT, VA, WY

Fund-Specific Risks

Consideration should be given to the risks of investing. Investments in bonds involve certain risks including a decline in value due to rising interest rates, a real or perceived decline in credit quality of the issuer, borrower, counterparty, or collateral, adverse tax or legislative changes, court decisions, market or economic conditions. Fund performance could be more volatile than that of funds with greater geographic diversification. For certain investors, some dividends may be subject to Federal and state taxes, including Alternative Minimum Tax (AMT). Please consult your professional tax advisor.

  • Fund symbol: CHKCX
  • CUSIP: 03842A806
  • Inception date: 4/1/1996
  • Total net assets ($millions) as of 09/30/2014: $233.2

Qualified for sale in:

KY, AL, CA, CO, FL, GA, HI, IL, IN, MN, MO, NJ, NY, OH, PA, RI, TN, UT, VA, WY

Fund-Specific Risks

Consideration should be given to the risks of investing. Investments in bonds involve certain risks including a decline in value due to rising interest rates, a real or perceived decline in credit quality of the issuer, borrower, counterparty, or collateral, adverse tax or legislative changes, court decisions, market or economic conditions. Fund performance could be more volatile than that of funds with greater geographic diversification. For certain investors, some dividends may be subject to Federal and state taxes, including Alternative Minimum Tax (AMT). Please consult your professional tax advisor.

  • Fund symbol: CHKYX
  • CUSIP: 03842A871
  • Inception date: 4/1/1996
  • Total net assets ($millions) as of 09/30/2014: $233.2

Qualified for sale in:

KY, AL, AZ, CA, CO, FL, GA, HI, IL, IN, MN, MO, NJ, NY, OH, PA, RI, UT, VA, WY

Fund-Specific Risks

Consideration should be given to the risks of investing. Investments in bonds involve certain risks including a decline in value due to rising interest rates, a real or perceived decline in credit quality of the issuer, borrower, counterparty, or collateral, adverse tax or legislative changes, court decisions, market or economic conditions. Fund performance could be more volatile than that of funds with greater geographic diversification. For certain investors, some dividends may be subject to Federal and state taxes, including Alternative Minimum Tax (AMT). Please consult your professional tax advisor.

  • Fund symbol: CHKIX
  • CUSIP: 03842A889
  • Inception date: 8/6/2001
  • Total net assets ($millions) as of 09/30/2014: $233.2

Qualified for sale in:

KY, AL, CA, CO, FL, GA, HI, IL, IN, MN, MO, NJ, NY, OH, PA, RI, UT, VA, WY

Fund-Specific Risks

Consideration should be given to the risks of investing. Investments in bonds involve certain risks including a decline in value due to rising interest rates, a real or perceived decline in credit quality of the issuer, borrower, counterparty, or collateral, adverse tax or legislative changes, court decisions, market or economic conditions. Fund performance could be more volatile than that of funds with greater geographic diversification. For certain investors, some dividends may be subject to Federal and state taxes, including Alternative Minimum Tax (AMT). Please consult your professional tax advisor.

NAV As of 10/21/14   $10.89

TOTAL RETURNS as of 09/30/2014as of 09/30/2014

Monthly Quarterly GROWTH of $10,000
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
CHTFX (At maximum offering price) (4.10) (2.92) 1.14 1.31 2.15 2.85 3.46 5.38
CHTFX (At NAV) (0.12) 1.14 5.39 5.53 3.56 3.70 3.89 5.54
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
CHTFX (At maximum offering price) (4.10) (2.92) 1.14 1.31 2.15 2.85 3.46 5.38
CHTFX (At NAV) (0.12) 1.14 5.39 5.53 3.56 3.70 3.89 5.54
Lipper Ranking (as of 12/31/2013), Other States Municipal Debt
Lipper Ranking 21 of 290 99 of 282 110 of 269 77 of 231
Lipper Percentile 7 35 41 33

NAV As of 10/21/14   $10.88

TOTAL RETURNS as of 09/30/2014as of 09/30/2014

Monthly Quarterly GROWTH of $10,000
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
CHKCX (With CDSC) (1.19) (0.08) 3.80 3.72 2.72 2.84 3.02 3.68
CHKCX (Without CDSC) (0.19) 0.93 4.82 4.74 2.72 2.84 3.02 3.68
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
CHKCX (With CDSC) (1.19) (0.08) 3.80 3.72 2.72 2.84 3.02 3.68
CHKCX (Without CDSC) (0.19) 0.93 4.82 4.74 2.72 2.84 3.02 3.68
Lipper Ranking (as of 12/31/2013), Other States Municipal Debt
Lipper Ranking 21 of 290 99 of 282 110 of 269 77 of 231
Lipper Percentile 7 35 41 33

NAV As of 10/21/14   $10.89

TOTAL RETURNS as of 09/30/2014as of 09/30/2014

Monthly Quarterly GROWTH of $10,000
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
CHKYX (0.11) 1.18 5.60 5.79 3.71 3.85 4.04 4.71
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
CHKYX (0.11) 1.18 5.60 5.79 3.71 3.85 4.04 4.71
Lipper Ranking (as of 12/31/2013), Other States Municipal Debt
Lipper Ranking 21 of 290 99 of 282 110 of 269 77 of 231
Lipper Percentile 7 35 41 33

NAV As of 10/21/14   $10.88

TOTAL RETURNS as of 09/30/2014as of 09/30/2014

Monthly Quarterly GROWTH of $10,000
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
CHKIX (0.13) 1.11 5.36 5.45 3.43 3.56 3.74 4.08
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
CHKIX (0.13) 1.11 5.36 5.45 3.43 3.56 3.74 4.08
Lipper Ranking (as of 12/31/2013), Other States Municipal Debt
Lipper Ranking 21 of 290 99 of 282 110 of 269 77 of 231
Lipper Percentile 7 35 41 33

Disclosures

Performance data represents past performance, but does not guarantee future results. Investment return and principal value will fluctuate; shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the data presented. Class A shares have a maximum sales charge of 4.00%; Class C shares have no initial sales charge, but a 1.00% contingent deferred sales charge applies to Class C shares redeemed within 12 months of their purchase date. Class Y shares have no initial or contingent deferred sales charge. Class A MOP (maximum offering price) returns reflect deduction of the maximum 4.00% sales charge; Class A NAV returns do not reflect deduction of the sales charge and would be lower if that charge were reflected. Class C returns without CDSC do not reflect deduction of the 1% CDSC applicable in the first 12 months; if applied, the CDSC would reduce the performance quoted.

Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. Lipper category is as of the quarter-end date indicated and may not accurately represent the current composition of the portfolio.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Distributions as of 10/21/14
Fund Symbol Distribution Yield SEC Yield i
NAV i Maximum offering price Maximum offering price
CHTFX 2.98 2.86 1.45

For the latest 30-day SEC yield, call 1-800-437-1020 between 9:00 A.M. and 5:00 P.M. ET on any business day.

Tax-Equivalent Yieldi Annual Tax Information

Disclosures

Data displayed represents past performance which does not guarantee future results. Due to market conditions, current yields may be higher or lower than the yields shown. The 30-Day SEC yield is a mutual fund’s yield, calculated as required by the SEC, based on the earnings of the fund’s portfolio during a 30-day period, divided by the offering price per share at the end of the period. This calculation reflects an estimated yield to maturity. It should be regarded as an estimate of the fund’s rate of investment income, and it may not equal the fund’s actual income distribution rate. The fund’s Distribution Rate is the percentage at which a mutual fund has distributed income to its shareholders. It is calculated by dividing a fund’s annualized dividend amount by its current offering price.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Dividends for all bond funds (tax-free municipal and corporate) in the Aquila Group of Funds are declared daily and paid monthly. For shareholders who receive monthly dividends by check from BNY Mellon, the funds’ shareholder servicing agent, rather than having them reinvested in additional shares or directly deposited into a bank account, we make every attempt to have monthly checks consistently arrive by the first of each month. In order to facilitate this, payments are processed and mailed prior to month-end, with the exception of December, when the dividend is declared on the 31st for tax reporting purposes. If your needs have changed and you wish to alter your investment directive from cash to reinvest, or to receive your cash dividends more efficiently through direct deposit, please call your financial professional or the fund’s shareholder servicing agent at 1-800-437-1000.

Dividend History

Dividend Schedule as of 2014

Dividend Cut-Off Date # of Days Covered by Dividend
January 28 28
February 26 29
March 27 29
April 24 28
May 22 28
June 24 33
July 24 30
August 26 33
September 25 30
October 28 33
November 26 29
December 31 35
Distributions as of 10/21/14
Fund Symbol Distribution Yield SEC Yieldi
CHKCX 2.14 0.67

For the latest 30-day SEC yield, call 1-800-437-1020 between 9:00 A.M. and 5:00 P.M. ET on any business day.

Tax-Equivalent Yieldi Annual Tax Information

Disclosures

Data displayed represents past performance which does not guarantee future results. Due to market conditions, current yields may be higher or lower than the yields shown. The 30-Day SEC yield is a mutual fund’s yield, calculated as required by the SEC, based on the earnings of the fund’s portfolio during a 30-day period, divided by the offering price per share at the end of the period. This calculation reflects an estimated yield to maturity. It should be regarded as an estimate of the fund’s rate of investment income, and it may not equal the fund’s actual income distribution rate. The fund’s Distribution Rate is the percentage at which a mutual fund has distributed income to its shareholders. It is calculated by dividing a fund’s annualized dividend amount by its current offering price.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Dividends for all bond funds (tax-free municipal and corporate) in the Aquila Group of Funds are declared daily and paid monthly. For shareholders who receive monthly dividends by check from BNY Mellon, the funds’ shareholder servicing agent, rather than having them reinvested in additional shares or directly deposited into a bank account, we make every attempt to have monthly checks consistently arrive by the first of each month. In order to facilitate this, payments are processed and mailed prior to month-end, with the exception of December, when the dividend is declared on the 31st for tax reporting purposes. If your needs have changed and you wish to alter your investment directive from cash to reinvest, or to receive your cash dividends more efficiently through direct deposit, please call your financial professional or the fund’s shareholder servicing agent at 1-800-437-1000.

Dividend History

Dividend Schedule as of 2014

Dividend Cut-Off Date # of Days Covered by Dividend
January 28 28
February 26 29
March 27 29
April 24 28
May 22 28
June 24 33
July 24 30
August 26 33
September 25 30
October 28 33
November 26 29
December 31 35
Distributions as of 10/21/14
Fund Symbol Distribution Yield SEC Yieldi
CHKYX 3.14 1.66

For the latest 30-day SEC yield, call 1-800-437-1020 between 9:00 A.M. and 5:00 P.M. ET on any business day.

Tax-Equivalent Yieldi Annual Tax Information

Disclosures

Data displayed represents past performance which does not guarantee future results. Due to market conditions, current yields may be higher or lower than the yields shown. The 30-Day SEC yield is a mutual fund’s yield, calculated as required by the SEC, based on the earnings of the fund’s portfolio during a 30-day period, divided by the offering price per share at the end of the period. This calculation reflects an estimated yield to maturity. It should be regarded as an estimate of the fund’s rate of investment income, and it may not equal the fund’s actual income distribution rate. The fund’s Distribution Rate is the percentage at which a mutual fund has distributed income to its shareholders. It is calculated by dividing a fund’s annualized dividend amount by its current offering price.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Dividends for all bond funds (tax-free municipal and corporate) in the Aquila Group of Funds are declared daily and paid monthly. For shareholders who receive monthly dividends by check from BNY Mellon, the funds’ shareholder servicing agent, rather than having them reinvested in additional shares or directly deposited into a bank account, we make every attempt to have monthly checks consistently arrive by the first of each month. In order to facilitate this, payments are processed and mailed prior to month-end, with the exception of December, when the dividend is declared on the 31st for tax reporting purposes. If your needs have changed and you wish to alter your investment directive from cash to reinvest, or to receive your cash dividends more efficiently through direct deposit, please call your financial professional or the fund’s shareholder servicing agent at 1-800-437-1000.

Dividend History

Dividend Schedule as of 2014

Dividend Cut-Off Date # of Days Covered by Dividend
January 31 31
February 28 28
March 31 31
April 30 30
May 31 31
June 30 30
July 31 31
August 31 31
September 30 30
October 31 31
November 30 30
December 31 31
Distributions as of 10/21/14
Fund Symbol Distribution Yield SEC Yieldi
CHKIX 2.86 1.38

For the latest 30-day SEC yield, call 1-800-437-1020 between 9:00 A.M. and 5:00 P.M. ET on any business day.

Tax-Equivalent Yield i Annual Tax Information

Disclosures

Data displayed represents past performance which does not guarantee future results. Due to market conditions, current yields may be higher or lower than the yields shown. The 30-Day SEC yield is a mutual fund’s yield, calculated as required by the SEC, based on the earnings of the fund’s portfolio during a 30-day period, divided by the offering price per share at the end of the period. This calculation reflects an estimated yield to maturity. It should be regarded as an estimate of the fund’s rate of investment income, and it may not equal the fund’s actual income distribution rate. The fund’s Distribution Rate is the percentage at which a mutual fund has distributed income to its shareholders. It is calculated by dividing a fund’s annualized dividend amount by its current offering price.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Dividends for all bond funds (tax-free municipal and corporate) in the Aquila Group of Funds are declared daily and paid monthly. For shareholders who receive monthly dividends by check from BNY Mellon, the funds’ shareholder servicing agent, rather than having them reinvested in additional shares or directly deposited into a bank account, we make every attempt to have monthly checks consistently arrive by the first of each month. In order to facilitate this, payments are processed and mailed prior to month-end, with the exception of December, when the dividend is declared on the 31st for tax reporting purposes. If your needs have changed and you wish to alter your investment directive from cash to reinvest, or to receive your cash dividends more efficiently through direct deposit, please call your financial professional or the fund’s shareholder servicing agent at 1-800-437-1000.

Dividend History

Dividend Schedule as of 2014

Dividend Cut-Off Date # of Days Covered by Dividend
January 31 31
February 28 28
March 31 31
April 30 30
May 31 31
June 30 30
July 31 31
August 31 31
September 30 30
October 31 31
November 30 30
December 31 31
Annual Expenses (as of 07/25/2014)
Total Operating Expense 0.76%
Net Expense ratio 0.76%

Alternative Purchase Plans & Sales Charge Breakpoints

The fund provides individuals with alternative ways to purchase shares through four separate classes of shares (Classes A, C, I and Y). Although the classes have different sales charge structures and ongoing expenses, they all represent interests in the same portfolio of securities an investor should choose the class that best suits the investor’s circumstances and needs. You are entitled to substantial reductions in sales charges based on aggregate holdings of all shares of any class of any of the funds in the Aquila Group of Funds that you or other members of your immediate family already own at the time of your purchase. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

Front-End Sales Charge Schedule
Investment Front-end Sales Charges
Less than $25,000 4.00%
$25,000 but less than $50,000 3.75%
$50,000 but less than $100,000 3.50%
$100,000 but less than $250,000 3.25%
$250,000 but less than $$500,000 3.00%
$500,000 but less than $1,000,000 2.50%
$1,000,000 but less than $2,500,000 0.00%
$2,500,000 but less than $5,000,000 0.00%
$5,,000,000 or more 0.00%
12b-1 Fees 0.15%
Contingent Deferred Sales Charges (CDSC)
Investment Applies to Purchases
over $1 million
Year 1 Year 2 Year 3&4
$1,000,000 but less than $2,500,000 1.00% 1.00% 0.00%
$2,500,000 but less than $5,000,000 0.50% 0.25% 0.00%
$5,000,000 or more 0.00% 0.00% 0.00%
Annual Expenses (as of 07/25/2014)
Total Operating Expense 1.61%
Net Expense ratio 1.61%

Alternative Purchase Plans & Sales Charge Breakpoints

The fund provides individuals with alternative ways to purchase shares through four separate classes of shares (Classes A, C, I and Y). Although the classes have different sales charge structures and ongoing expenses, they all represent interests in the same portfolio of securities an investor should choose the class that best suits the investor’s circumstances and needs. You are entitled to substantial reductions in sales charges based on aggregate holdings of all shares of any class of any of the funds in the Aquila Group of Funds that you or other members of your immediate family already own at the time of your purchase. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

CONTINGENT DEFERRED SALES CHARGES (CDSC)

A CDSC of 1% is applied to the redemption of Class C Shares held for less than 12 months. No CDSC applies to Class C Shares acquired through the reinvestment of dividends or distributions.

12b-1 Fees 0.75%
Annual Expenses (as of 07/25/2014)
Total Operating Expense 0.61%
Net Expense ratio 0.61%

Alternative Purchase Plans & Sales Charge Breakpoints

The fund provides individuals with alternative ways to purchase shares through four separate classes of shares (Classes A, C, I and Y). Although the classes have different sales charge structures and ongoing expenses, they all represent interests in the same portfolio of securities an investor should choose the class that best suits the investor’s circumstances and needs. You are entitled to substantial reductions in sales charges based on aggregate holdings of all shares of any class of any of the funds in the Aquila Group of Funds that you or other members of your immediate family already own at the time of your purchase. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

12b-1 Fees 0.00%
Annual Expenses (as of 07/25/2014)
Total Operating Expense 0.92%
Net Expense ratio 0.92%

Alternative Purchase Plans & Sales Charge Breakpoints

The fund provides individuals with alternative ways to purchase shares through four separate classes of shares (Classes A, C, I and Y). Although the classes have different sales charge structures and ongoing expenses, they all represent interests in the same portfolio of securities an investor should choose the class that best suits the investor’s circumstances and needs. You are entitled to substantial reductions in sales charges based on aggregate holdings of all shares of any class of any of the funds in the Aquila Group of Funds that you or other members of your immediate family already own at the time of your purchase. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

12b-1 Fees 0.15%

Disclosures

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site, from your financial advisor, or by calling 800-437-1020.

Portfolio Managers

  • ROYDEN DURHAM and TODD CURTIS are the Co-Portfolio Managers of Aquila Churchill Tax-Free Fund of Kentucky.

    Mr. Durham (left) was named Vice President and co-manager of Aquila Churchill Tax-Free Fund of Kentucky in September, 2011. Mr. Durham’s career in the financial services industry spans 33 years, during which time he has served as portfolio manager and trust investment officer, managing both fixed-income (domestic and foreign) and equity assets for firms including JP Morgan Chase, Regions Morgan Keegan Trust, and The Sachs Company / Louisville Trust Company, where he served as the Municipal Securities Rule Making Board representative for the firm.

    Mr. Durham has managed individual, institutional and endowment accounts, and in addition, has been responsible for trading, research and credit analysis. He began his career on the sell side of the municipal bond market with Dean Witter Reynolds and Bache Halsey Stuart, and is a graduate of Heidelberg College. Mr. Durham is a resident of Louisville, Kentucky, which enables him to maintain a careful watch over the Fund’s investment portfolio.

     

  • Mr. Curtis has been the Portfolio Manager of Aquila Churchill Tax-Free Fund of Kentucky since May, 2009, the Portfolio Manager of Aquila Tax-Free Trust of Arizona since its inception in 1986 and the Portfolio Manager of Aquila Tax-Free Fund For Utah since April, 2009. Prior to joining Aquila, Mr. Curtis was a Vice President and fixed income manager of Banc One Investment Advisors where he had held various portfolio management and trading positions since 1982.

    Previously, Mr. Curtis worked for seven years in the insurance industry with Arthur J. Gallagher & Company, IL, Marsh & McLennan, IL and The Travelers Insurance Company, CT. Mr. Curtis is a Chartered Financial Analyst (CFA), and a member of the Society of Financial Analysts and the Institute of Chartered Financial Analysts.