oregon

Aquila Tax-Free Trust of Oregon

Overview
Performance
Distributions
Fees & Expenses
Portfolio Management

Description & Objective

Aquila Tax-Free Trust of Oregon is a municipal bond mutual fund designed especially for Oregon residents.

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

Investor Profile

Oregon 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

  • James A. Gardner, Chair - President, Gardner Associates, an investment and real estate firm, since 1989; Owner and Developer of Vandevert Ranch, Sunriver, Oregon since 1989; Founding Partner, Chairman Emeritus and previously Chairman (1991-2010), Ranch at the Canyons, Terrebonne, Oregon; President Emeritus and previously President (1981-89), Lewis and Clark College and Law School; director, Oregon High Desert Museum, 1989-2003, active in civic, business and educational organizations in Oregon; writer on Native American and settlement history of Oregon.

  • Diana P. Herrmann, Vice Chair and 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 head 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.

  • Gary C. Cornia – Professor, Marriott School of Management, Brigham Young University, 1980-present; Dean, Marriott School of Management, 2008-2013 and Associate Dean, 1991-2000; 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; 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.

  • Edmund P. Jensen – President and CEO, VISA International, 1994-1999; Vice Chairman and Chief Operating Officer, US Bancorp, 1974-1994.  Other Directorships held by the Trustee  –  FiveCubits, Inc. (formerly BMG-Seltec), a software company; Lewis and Clark College, Portland, OR.

  • John W. Mitchell – Principal of M & H Economic Consultants; Economist, Western Region, for U.S. Bancorp 1998-2007; Chief Economist, U.S. Bancorp, Portland, Oregon, 1983-1998; member, Oregon Governor’s Council of Economic Advisors, 1984-1998; Chairman, Oregon Governor’s Technical Advisory Committee for Tax Review in 1998.  Other Directorships held by the Trustee – Oregon Mutual Insurance; Western Capital Corporation; Northwest Bank.

  • Ralph R. Shaw – President, Shaw Management Company, an investment counseling firm, 1980-present, General Partner, Shaw Venture Partners, 1983-2005, Shaw Venture Partners II, 1987-2005 and Shaw Venture Partners III, 1994-2005. Other Directorships held by Trustee - FiveCubits, Inc. (formerly BMG Seltec), a software company; Rentrak Corporation; formerly director, Schnitzer Steel Industries, Inc., Telestream, Inc., One-to-One Interactive Optimum Energy Co.

  • Nancy Wilgenbusch – President Emerita since 2008 and President 1984-2008 , Marylhurst University; member, former Chair, Portland Branch of the Federal Reserve Bank of San Francisco; active board member of a number of civic organizations. Other Directorships held by Trustee – West Coast Bank; Cascade Corporation, a leading international manufacturer of lift truck attachments.

  • 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: ORTFX
  • CUSIP: 03842N105
  • Inception date: 6/16/1986
  • Total net assets ($millions) as of 06/30/2014: $514.5

Qualified for sale in:

OR, AZ, CA, CO, FL, HI, IL, KS, MN, NV, NJ, NM, NY, WA

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: ORTCX
  • CUSIP: 03842N204
  • Inception date: 4/5/1996
  • Total net assets ($millions) as of 06/30/2014: $514.5

Qualified for sale in:

OR, AZ, CA, CO, FL, HI, IL, KS, MN, NV, NJ, NM, NY, WA

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: ORTYX
  • CUSIP: 03842N303
  • Inception date: 4/5/1996
  • Total net assets ($millions) as of 06/30/2014: $514.5

Qualified for sale in:

OR, AZ, CA, CO, FL, HI, IL, KS, MN, NV, NM, NY, WA

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 07/30/14   $11.18

TOTAL RETURNS as of 06/30/2014as of 06/30/2014

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
ORTFX (At maximum offering price) (3.97) (1.87) 0.48 0.96 3.12 3.83 3.75 5.40
ORTFX (At NAV) 0.07 2.23 4.65 5.20 4.53 4.68 4.17 5.55
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
ORTFX (At maximum offering price) (3.97) (1.87) 0.48 0.96 3.12 3.83 3.75 5.40
ORTFX (At NAV) 0.07 2.23 4.65 5.20 4.53 4.68 4.17 5.55
Lipper Ranking (as of 12/31/2013), Other States Municipal Debt
Lipper Ranking 32 of 290 94 of 282 188 of 269 90 of 231
Lipper Percentile 11 33 70 39

NAV As of 07/30/14   $11.17

TOTAL RETURNS as of 06/30/2014as of 06/30/2014

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
ORTCX (With CDSC) (1.00) 1.01 3.20 3.29 3.65 3.77 3.30 3.82
ORTCX (Without CDSC) 0.00 2.01 4.21 4.32 3.65 3.77 3.30 3.82
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
ORTCX (With CDSC) (1.00) 1.01 3.20 3.29 3.65 3.77 3.30 3.82
ORTCX (Without CDSC) 0.00 2.01 4.21 4.32 3.65 3.77 3.30 3.82
Lipper Ranking (as of 12/31/2013), Other States Municipal Debt
Lipper Ranking 32 of 290 94 of 282 188 of 269 90 of 231
Lipper Percentile 11 33 70 39

NAV As of 07/30/14   $11.17

TOTAL RETURNS as of 06/30/2014as of 06/30/2014

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
ORTYX 0.08 2.27 4.73 5.36 4.69 4.81 4.33 4.86
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
ORTYX 0.08 2.27 4.73 5.36 4.69 4.81 4.33 4.86
Lipper Ranking (as of 12/31/2013), Other States Municipal Debt
Lipper Ranking 32 of 290 94 of 282 188 of 269 90 of 231
Lipper Percentile 11 33 70 39

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 07/30/14
Fund Symbol Distribution Yield SEC Yield i
NAV i Maximum offering price Maximum offering price
ORTFX 3.00 2.88 1.53

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 07/30/14
Fund Symbol Distribution Yield SEC Yieldi
ORTCX 2.16 0.75

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 07/30/14
Fund Symbol Distribution Yield SEC Yieldi
ORTYX 3.16 1.74

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
Annual Expenses (as of 07/25/2014)
Total Operating Expense 0.74%
Net Expense ratio 0.73%

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% 0.50%
$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 1.59%
Net Expense ratio 1.58%

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 0.59%
Net Expense ratio 0.58%

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%

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.

Portfolio Managers

  • CHRISTOPHER (CHRIS) B. JOHNS is the Portfolio Manager of Aquila Tax-Free Trust of Oregon.

    Mr. Johns is Senior Vice President and Portfolio Manager with the Sub-Adviser to the Trust, Davidson Fixed Income Management and has over 30 years of experience as a fixed-income portfolio manager. Over that period of time, Mr. Johns has managed tax-exempt fixed-income assets through a variety of interest rate cycles, providing him with experience and insight which will be beneficial in managing Tax-Free Trust of Oregon.

    Mr. Johns has been the Portfolio Manager of Aquila Tax-Free Fund of Colorado, another tax-exempt offering from the Aquila Group of Funds, since its inception in 1987, and also provides portfolio management services for a number of government entity accounts. Prior to joining the new sub-adviser in 1992, Mr. Johns was a Senior Portfolio Manager and Fixed-Income Analyst for United Bank of Denver (now Wells Fargo, Denver), where he developed and implemented investment strategy and trading policies for Aquila Tax-Free Fund of Colorado, in addition to coordinating and directing all municipal bond trading for accounts representing $400 million in tax-exempt assets. Mr. Johns conducts numerous investment seminars and financial professional briefings on municipal bonds, which cover economic, political and legislative developments. Mr. Johns holds a BBA in Finance from the University of Cincinnati, and will divide his time between Oregon and Colorado.