PERS Reforms to be Considered by the Oregon Supreme Court


We believe that one of the benefits of having a portfolio manager and analyst located in the market in which Aquila Tax-Free Trust of Oregon invests, is the opportunity this provides to closely follow public policy developments and legislation, in addition to the financial condition of municipal bond issuers.

Developments related to the Public Employee Retirement System (PERS) provide an example.  In 2013, the Oregon Legislature enacted PERS reforms that reduced the cost-of-living adjustment for all retirees, and eliminated tax remedy payments for beneficiaries who do not live in Oregon and are therefore not subject to Oregon state income tax. These provisions will be considered by the Oregon Supreme Court early in 2015.  While it is possible that the Court could reverse the PERS reforms, we currently view that as the less likely outcome.

As we conduct research and evaluate investment opportunities on behalf of Aquila Tax-Free Trust of Oregon, we incorporate in our analysis the potential fiscal impact of legislation and court proceedings such as those related to PERS.  Our presence in the Oregon market enables us to closely monitor developments such as these.

The Aquila Tax-Free Trust of Oregon focuses on high quality, intermediate maturity bonds in an effort to provide some stability in uncertain market conditions.  Through our emphasis on local research and our disciplined investment approach we strive to provide reduced volatility and double tax-exempt income for our shareholders.

Before investing in a Fund, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus.   The prospectus is available from your financial adviser and when you call 800-437-1020 or visit www.aquilafunds.com.