NPORT-EX 2 fp0056870_nportex-carret.htm

 

CARRET KANSAS TAX-EXEMPT BOND FUND  

SCHEDULE OF INVESTMENTS    

June 30, 2020 (Unaudited)

 

   Principal Amount   Value
(Note 2)		 
MUNICIPAL BONDS (98.47%)          
Education (42.42%)(a)          
Barton Community College, Certificate Participation Bonds          
4.000%, 12/01/2032  $555,000   $629,703 
4.000%, 12/01/2034   250,000    280,332 
Bourbon County Unified School District No. 234-Fort Scott, General Obligation Unlimited Bonds          
5.000%, 09/01/2025   355,000    416,351 
Butler County Unified School District No. 206 Remington, General Obligation Unlimited Bonds          
3.000%, 09/01/2034   1,000,000    1,057,720 
3.000%, 09/01/2035   510,000    537,673 
Butler County Unified School District No. 385 Andover, General Obligation Unlimited Bonds          
4.000%, 09/01/2030   690,000    828,097 
4.000%, 09/01/2031   500,000    590,080 
5.000%, 09/01/2032   2,750,000    3,469,922 
5.000%, 09/01/2034   2,000,000    2,497,860 
Butler County Unified School District No. 490 El Dorado, General Obligation Unlimited Bonds          
4.000%, 09/01/2034   1,000,000    1,150,240 
4.000%, 09/01/2036   500,000    568,400 
Douglas County Unified School District No. 497 Lawrence, General Obligation Unlimited Bonds          
4.000%, 09/01/2031   1,500,000    1,786,035 
4.000%, 09/01/2033   500,000    557,275 
Finney County Unified School District No. 457 Garden City, General Obligation Unlimited Bonds          
4.000%, 09/01/2031   1,500,000    1,742,095 
5.000%, 09/01/2027   800,000    999,608 
Ford County Unified School District No. 443 Dodge City, General Obligation Unlimited Bonds          
4.000%, 03/01/2030   1,150,000    1,349,375 
4.000%, 03/01/2034   1,000,000    1,146,260 
Franklin County Unified School District No. 290 Ottawa, General Obligation Unlimited Bonds          
4.000%, 09/01/2040   250,000    293,990 
5.000%, 09/01/2031   1,715,000    2,103,996 
5.000%, 09/01/2032   150,000    184,023 
5.000%, 09/01/2033   1,000,000    1,226,820 
Geary County Unified School District No. 475, General Obligation Unlimited Bonds          
4.000%, 09/01/2038   2,000,000    2,220,400 
4.000%, 09/01/2043   1,000,000    1,101,540 
Hutchinson Community College & Area Vocational School, Certificate Participation Bonds         
4.000%, 10/01/2037   1,700,000    1,744,353 
Johnson & Miami Counties Unified School District No. 230 Spring Hills, General Obligation Unlimited Bonds       
4.000%, 09/01/2031   400,000    472,364 
4.000%, 09/01/2033   1,000,000    1,157,960 
4.000%, 09/01/2035   1,000,000    1,151,630 
5.000%, 09/01/2030   1,970,000    2,444,120 
5.250%, 09/01/2029   1,500,000    1,584,195 
Johnson County Unified School District No. 232 De Soto, General Obligation Unlimited Bonds          
4.000%, 09/01/2031   1,165,000    1,408,613 
4.000%, 09/01/2032   1,745,000    2,094,087 
Johnson County Unified School District No. 233 Olathe, General Obligation Unlimited Bonds          
4.000%, 09/01/2031   1,000,000    1,162,470 

 

 

   Principal Amount   Value
(Note 2)		 
Education (continued)          
4.000%, 09/01/2033  $905,000   $1,019,830 
4.000%, 09/01/2035   790,000    882,699 
4.000%, 09/01/2036   480,000    534,950 
Johnson County Unified School District No. 512 Shawnee Mission, General Obligation Unlimited Bonds        
5.000%, 10/01/2032   1,000,000    1,211,080 
Kansas Development Finance Authority, Revenue Bonds          
3.000%, 05/01/2030   450,000    466,155 
4.000%, 03/01/2028   610,000    675,862 
4.000%, 05/01/2034   1,000,000    1,050,020 
Leavenworth County Unified School District No. 453, General Obligation Unlimited Bonds          
4.000%, 09/01/2036   1,000,000    1,131,780 
Leavenworth County Unified School District No. 458, General Obligation Unlimited Bonds          
5.000%, 09/01/2037   1,165,000    1,448,235 
5.000%, 09/01/2038   1,000,000    1,238,570 
Leavenworth County Unified School District No. 464, General Obligation Unlimited Bonds          
4.000%, 09/01/2034   675,000    784,060 
4.000%, 09/01/2036   465,000    535,619 
Leavenworth County Unified School District No. 469, General Obligation Unlimited Bonds          
4.000%, 09/01/2030   900,000    967,500 
Lyon County Unified School District No. 253 Emporia, General Obligation Unlimited Bonds          
4.000%, 09/01/2030   325,000    385,859 
Montgomery County Unified School District No. 446 Independence, General Obligation Unlimited Bonds          
5.000%, 09/01/2030   1,715,000    2,117,339 
Riley County Unified School District No. 378 Riley, General Obligation Unlimited Bonds          
3.000%, 09/01/2039   925,000    979,223 
Riley County Unified School District No. 383 Manhattan-Ogden, General Obligation Unlimited Bonds          
5.000%, 09/01/2028   1,220,000    1,533,528 
Saline County Unified School District No. 305 Salina, General Obligation Unlimited Bonds          
4.000%, 09/01/2034   440,000    514,659 
Scott County Unified School District No. 466 Scott City, General Obligation Unlimited Bonds          
4.000%, 09/01/2037   1,000,000    1,102,360 
Sedgwick County Unified School District No. 260 Derby, General Obligation Unlimited Bonds          
3.500%, 10/01/2036   845,000    930,573 
5.000%, 10/01/2029   340,000    375,925 
Sedgwick County Unified School District No. 261 Haysville, General Obligation Unlimited Bonds      
2.500%, 11/01/2030   500,000    501,600 
5.000%, 11/01/2023   5,000    5,019 
Sedgwick County Unified School District No. 262 Valley Center, General Obligation Unlimited Bonds      
4.000%, 09/01/2030   500,000    558,675 
5.000%, 09/01/2033   750,000    891,293 
Sedgwick County Unified School District No. 264 Clearwater, General Obligation Unlimited Bonds      
4.000%, 09/01/2029   530,000    619,390 
Sedgwick County Unified School District No. 265 Goddard, General Obligation Unlimited Bonds      
5.000%, 10/01/2024   370,000    440,548 
Sedgwick County Unified School District No. 266 Maize, General Obligation Unlimited Bonds          
4.000%, 09/01/2032   750,000    891,563 
Sedgwick County Unified School District No. 267 Renwick, General Obligation Unlimited Bonds      
4.000%, 11/01/2033   350,000    414,285 
4.000%, 11/01/2034   425,000    502,269 
4.000%, 11/01/2035   635,000    748,608 
Sedgwick County Unified School District No. 268 Cheney, General Obligation Unlimited Bonds      
3.000%, 09/01/2029   615,000    650,307 

 

 

   Principal Amount   Value
(Note 2)		 
Education (continued)          
Seward County Unified School District No. 480 Liberal, General Obligation Unlimited Bonds          
4.000%, 09/01/2028  $1,000,000   $1,190,240 
4.000%, 09/01/2032   500,000    581,340 
5.000%, 09/01/2029   2,390,000    2,885,065 
Sumner County Unified School District No. 353 Wellington, General Obligation Unlimited Bonds      
5.000%, 09/01/2026   230,000    260,100 
Washburn University/Topeka, Revenue Bonds          
4.000%, 07/01/2041   330,000    355,651 
5.000%, 07/01/2035   500,000    568,645 
Wyandotte County Unified School District No. 202 Turner, General Obligation Unlimited Bonds      
4.000%, 09/01/2038   1,225,000    1,394,944 
4.000%, 09/01/2039   400,000    454,176 
Wyandotte County Unified School District No. 203 Piper, General Obligation Unlimited Bonds          
5.000%, 09/01/2038   1,000,000    1,257,670 
Wyandotte County Unified School District No. 500 Kansas City, General Obligation Unlimited Bonds        
5.000%, 09/01/2030   500,000    616,965 
Total Education        75,631,766 
           
General Obligation (24.13%)          
Abilene Public Building Commission, Revenue Bonds          
4.000%, 12/01/2029   325,000    390,458 
4.000%, 12/01/2031   445,000    523,213 
Ashland Public Building Commission, Revenue Bonds          
4.000%, 09/01/2020   110,000    110,530 
5.000%, 09/01/2035   720,000    774,591 
City of Abilene, General Obligation Unlimited Bonds          
4.300%, 09/01/2027   150,000    150,987 
4.600%, 09/01/2030   500,000    503,535 
City of Dodge City, Revenue Bonds          
4.000%, 06/01/2024   230,000    259,343 
City of Haysville, Certificate Participation Bonds          
4.125%, 11/01/2032   460,000    439,585 
City of Junction City, General Obligation Unlimited Bonds          
4.500%, 09/01/2031   1,000,000    1,005,930 
City of Lawrence, General Obligation Unlimited Bonds          
4.000%, 09/01/2030   470,000    556,607 
4.000%, 09/01/2031   445,000    522,492 
City of Manhattan, General Obligation Unlimited Bonds          
4.000%, 11/01/2031   400,000    493,456 
5.000%, 11/01/2025   570,000    699,863 
5.000%, 11/01/2029   800,000    1,080,112 
City of Merriam, General Obligation Unlimited Bonds          
5.000%, 10/01/2027   1,670,000    2,176,311 
City of Newton, General Obligation Unlimited Bonds          
4.000%, 09/01/2023   250,000    276,785 
City of Olathe, General Obligation Unlimited Bonds          
4.000%, 10/01/2028   1,315,000    1,572,319 
City of Park City, General Obligation Unlimited Bonds          
5.375%, 12/01/2025   5,000    5,014 
City of Phillipsburg, Revenue Bonds          
4.500%, 10/01/2028   545,000    549,796 

 

 

   Principal Amount   Value
(Note 2)		 
General Obligation (continued)          
City of Salina, General Obligation Unlimited Bonds          
3.000%, 10/01/2033  $620,000   $666,965 
3.000%, 10/01/2036   680,000    724,282 
City of Shawnee, General Obligation Unlimited Bonds          
4.000%, 12/01/2027   425,000    486,056 
City of Spring Hill, General Obligation Unlimited Bonds          
4.000%, 09/01/2029   810,000    977,767 
City of Topeka, General Obligation Unlimited Bonds          
2.000%, 08/15/2026   1,000,000    1,011,110 
City of Wichita, General Obligation Unlimited Bonds          
3.000%, 10/01/2030   720,000    805,709 
4.000%, 12/01/2029   250,000    256,163 
4.000%, 06/01/2030   820,000    982,253 
5.000%, 12/01/2025   500,000    618,955 
County of Clay, General Obligation Unlimited Bonds          
4.000%, 10/01/2036   750,000    820,710 
County of Geary, General Obligation Unlimited Bonds          
4.000%, 09/01/2030   415,000    484,156 
County of Johnson, General Obligation Unlimited Bonds          
3.000%, 09/01/2030   400,000    416,920 
4.000%, 09/01/2028   1,125,000    1,314,911 
County of Linn, General Obligation Unlimited Bonds          
4.000%, 07/01/2032   505,000    616,368 
Johnson County Public Building Commission, Revenue Bonds          
4.000%, 09/01/2029   650,000    743,385 
4.000%, 09/01/2030   500,000    569,275 
4.000%, 09/01/2031   1,500,000    1,699,860 
Kansas Development Finance Authority, Revenue Bonds          
4.000%, 10/01/2020   250,000    252,000 
4.000%, 11/01/2030   800,000    950,448 
4.000%, 11/01/2031   1,100,000    1,299,496 
5.000%, 04/01/2026   1,485,000    1,658,715 
5.000%, 09/01/2026   630,000    785,717 
5.000%, 04/01/2030   655,000    724,227 
5.000%, 04/01/2031   1,000,000    1,105,070 
5.000%, 04/01/2034   2,000,000    2,206,780 
Overland Park Transportation Development District, Revenue Bonds          
5.900%, 04/01/2032   800,000    799,968 
Unified Government of Greeley County, General Obligation Unlimited Bonds          
4.000%, 12/01/2029   250,000    289,610 
4.000%, 12/01/2032   100,000    112,570 
Wyandotte County-Kansas City Unified Government, General Obligation Unlimited Bonds          
2.000%, 08/01/2033   1,000,000    1,027,160 
4.000%, 08/01/2029   685,000    820,979 
4.000%, 08/01/2030   1,560,000    1,753,569 
4.000%, 08/01/2031   930,000    987,809 
5.000%, 08/01/2025   815,000    996,753 
5.000%, 08/01/2029   1,000,000    1,003,730 
Wyandotte County-Kansas City Unified Government, Revenue Bonds          
4.875%, 10/01/2028   350,000    315,196 

 

 

   Principal Amount   Value
(Note 2)		 
General Obligation (continued)          
5.000%, 12/01/2023  $570,000   $629,953 
Total General Obligation        43,005,522 
           
Health Care (4.41%)          
City of Manhattan, Revenue Bonds          
5.000%, 11/15/2029   680,000    734,298 
City of Olathe, Revenue Bonds          
4.000%, 09/01/2030   450,000    464,557 
City of Wichita, Revenue Bonds          
5.000%, 11/15/2029   1,570,000    1,668,753 
Kansas Development Finance Authority, Revenue Bonds          
5.000%, 11/15/2032   1,500,000    1,597,680 
5.000%, 11/15/2034   350,000    371,788 
Lyon County Public Building Commission, Revenue Bonds          
5.000%, 12/01/2035   1,335,000    1,571,789 
Pawnee County Public Building Commission, Revenue Bonds          
4.000%, 02/15/2031   145,000    149,699 
University of Kansas Hospital Authority, Revenue Bonds          
5.000%, 09/01/2028   250,000    299,108 
5.000%, 09/01/2030   350,000    415,852 
5.000%, 09/01/2031   500,000    591,750 
Total Health Care        7,865,274 
           
Housing (1.69%)          
Pratt County Public Building Commission, Revenue Bonds          
3.250%, 12/01/2032   655,000    655,825 
Topeka Public Building Commission, Revenue Bonds          
5.000%, 06/01/2027   2,355,000    2,363,902 
Total Housing        3,019,727 
           
Public Services (1.00%)          
Johnson County Park & Recreation District, Certificate Participation Bonds          
3.000%, 09/01/2028   1,165,000    1,224,974 
3.000%, 09/01/2029   535,000    560,065 
Total Public Services        1,785,039 
           
Transportation (10.51%)          
Kansas Turnpike Authority, Revenue Bonds          
5.000%, 09/01/2031   630,000    847,344 
5.000%, 09/01/2032   500,000    667,565 
5.000%, 09/01/2036   1,000,000    1,307,980 
5.000%, 09/01/2037   1,000,000    1,302,720 
5.000%, 09/01/2038   900,000    1,168,047 
State of Kansas Department of Transportation, Revenue Bonds          
5.000%, 09/01/2023   200,000    228,298 
5.000%, 09/01/2028   1,500,000    1,916,325 
5.000%, 09/01/2029   1,000,000    1,198,190 
5.000%, 09/01/2031   3,020,000    3,802,482 
5.000%, 09/01/2032   500,000    625,825 
5.000%, 09/01/2033   1,445,000    1,704,609 

 

 

   Principal Amount   Value
(Note 2)		 
Transportation (continued)          
5.000%, 09/01/2034  $3,260,000   $3,969,074 
Total Transportation        18,738,459 
           
Utilities (14.31%)          
City of Lawrence Water & Sewage System, Revenue Bonds          
4.000%, 11/01/2038   1,000,000    1,113,270 
City of Olathe Water & Sewer System, Revenue Bonds          
2.000%, 07/01/2034   540,000    549,077 
2.000%, 07/01/2035   550,000    556,012 
3.000%, 07/01/2030   675,000    756,574 
3.000%, 07/01/2031   555,000    618,448 
3.000%, 07/01/2032   745,000    819,768 
3.000%, 07/01/2033   755,000    825,411 
4.000%, 07/01/2024   250,000    281,065 
City of Topeka Combined Utility, Revenue Bonds          
3.375%, 08/01/2032   1,335,000    1,336,789 
3.500%, 08/01/2033   2,285,000    2,288,107 
4.000%, 08/01/2026   2,600,000    2,697,760 
City of Wichita Water & Sewer Utility, Revenue Bonds          
3.000%, 10/01/2029   1,180,000    1,290,047 
3.250%, 10/01/2031   1,070,000    1,074,098 
3.375%, 10/01/2039   1,000,000    1,082,720 
4.000%, 10/01/2029   1,000,000    1,009,310 
5.000%, 10/01/2025   1,000,000    1,056,000 
5.000%, 10/01/2028   2,650,000    2,798,400 
Kansas Power Pool, Revenue Bonds          
5.000%, 12/01/2023   200,000    219,240 
5.000%, 12/01/2028   700,000    838,411 
Wyandotte County-Kansas City Unified Government Utility System, Revenue Bonds          
5.000%, 09/01/2027   1,300,000    1,368,081 
5.000%, 09/01/2031   1,350,000    1,629,824 
5.000%, 09/01/2032   1,090,000    1,182,879 
5.000%, 09/01/2033   100,000    118,185 
Total Utilities        25,509,476 
           
TOTAL MUNICIPAL BONDS          
(Cost $166,143,292)        175,555,263 

 

   7-Day Yield   Shares   Value
(Note 2)		 
SHORT TERM INVESTMENTS (0.69%)               
Money Market Fund               
Federated Treasury Obligations Fund   0.010%   1,228,302   $1,228,302 
Total Money Market Fund             1,228,302 
                
TOTAL SHORT TERM INVESTMENTS               
 (Cost $1,228,302)             1,228,302 
                
TOTAL INVESTMENTS (99.16%)               
(Cost $167,371,594)            $176,783,565 
                
OTHER ASSETS IN EXCESS OF LIABILITIES (0.84%)             1,494,315 
                
NET ASSETS (100.00%)            $178,277,880 

 

(a)  To the extent the Fund invests more heavily in particular sectors of the economy, its performance will be especially sensitive to developments that significantly affect those sectors. When sector categorization is broken down by industry, no industry exceeds the 25% maximum specified in the Statement of Additional Information.

 

 

Notes to Quarterly Portfolio of Investments
June 30, 2020 (Unaudited)

 

1.ORGANIZATION

 

ALPS Series Trust (the “Trust”), a Delaware statutory trust, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (“1940 Act”). The Trust consists of multiple separate portfolios or series. This quarterly report describes the Carret Kansas Tax-Exempt Bond Fund (the “Fund” or “Kansas Tax-Exempt Bond Fund”). The Fund’s investment objective is to preserve capital while producing current income for the investor that is exempt from both federal and Kansas state income taxes. The Fund is considered non-diversified and may invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund. The Fund currently offers Institutional Class Shares and Class A Shares. Each share class has identical rights to earnings, assets and voting privileges, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. The Board of Trustees (the “Board”) may establish additional funds and classes of shares at any time in the future without shareholder approval.

 

2.SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America for investment companies (“U.S. GAAP”). The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Fund in preparation of its financial statements.

 

Investment Valuation: The Fund generally values its securities based on market prices determined at the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern Time, on each day the NYSE is open for trading.

 

For equity securities and shares of registered investment companies that are traded on an exchange, the market price is usually the closing sale or official closing price on that exchange. In the case of equity securities not traded on an exchange, or if such closing prices are not otherwise available, the securities are valued at the mean of the most recent bid and ask prices on such day.

 

The market price for debt obligations is generally the price supplied by an independent third-party pricing service approved by the Board, which may use a matrix, formula or other objective method that takes into consideration quotations from dealers, market transactions in comparable investments, market indices and yield curves. If vendors are unable to supply a price, or if the price supplied is deemed to be unreliable, the market price may be determined using quotations received from one or more broker-dealers that make a market in the security.

 

Redeemable securities issued by open-end registered investment companies are valued at the investment company’s applicable net asset value (“NAV”). Money market funds, representing short-term investments, are valued at their NAV. When such prices or quotations are not available, or when the Fair Value Committee appointed by the Board believes that they are unreliable, securities may be priced using fair value procedures approved by the Board.

 

Fair Value Measurements: The Fund discloses the classification of its fair value measurements following a three-tier hierarchy based on the inputs used to measure fair value. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

 

 

Various inputs are used in determining the value of the Fund’s investments as of the end of the reporting period. When inputs used fall into different levels of the fair value hierarchy, the level in the hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under applicable financial accounting standards:

 

Level 1 –

Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date;

     
Level 2 – Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly); and
     
Level 3 –

Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the

measurement date.

 

The following is a summary of the inputs used to value the Fund’s investments as of June 30, 2020:

 

Investments in Securities at Value*  Level 1 -
Quoted and
Unadjusted
Prices		   Level 2 - Other
Significant
Observable
Inputs		   Level 3 -
Significant
Unobservable
Inputs		   Total 
Municipal Bonds  $–   $175,555,263   $–   $175,555,263 
Short Term Investments   1,228,302    –    –    1,228,302 
Total  $1,228,302   $175,555,263   $–   $176,783,565 

 

* For a detailed Sector breakdown, see the accompanying Portfolio of Investments.

 

There were no Level 3 securities held in the Fund at June 30, 2020.

 

Securities Purchased on a When-Issued Basis: The Fund may purchase securities on a “when-issued” basis. When-issued securities are securities purchased for delivery beyond the normal settlement date at a stated price and/or yield, thereby involving the risk that the price and/or yield obtained may be more or less than those available in the market when delivery takes place. At the time a Fund makes the commitment to purchase a security on a when-issued basis, the Fund records the transaction and reflects the value of the security in determining net asset value. Normally, the settlement date occurs within one month of the purchase. No payment is made by the Fund and no interest accrues to the Fund during the period between purchase and settlement.

 

Cash & Cash Equivalents: The Fund considers its investment in a Federal Deposit Insurance Corporation (“FDIC”) insured interest bearing account to be cash and cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Fund maintains cash balances, which, at times may exceed federally insured limits. The Fund maintains these balances with a high-quality financial institution.

 

Concentration of Credit Risk: The Fund places its cash with a banking institution, which is insured by FDIC. The FDIC limit is $250,000. At various times throughout the year, the amount on deposit may exceed the FDIC limit and subject the Fund to a credit risk. The Fund does not believe that such deposits are subject to any unusual risk associated with investment activities.

 

The Fund invests primarily in debt obligations issued by the State of Kansas and its respective political subdivisions, agencies and public authorities. The Fund is more susceptible to economic and political factors adversely affecting issuers of Kansas specific municipal securities than are municipal bond funds that are not concentrated in these issuers to the same extent.

 

Trust Expenses: Some expenses of the Trust can be directly attributed to a Fund. Expenses that cannot be directly attributed to a Fund are apportioned among all funds in the Trust based on average net assets of each fund, including Trustees’ fees and expenses.

 

Fund Expenses: Some expenses can be directly attributed to a Fund and are apportioned among the classes based on average net assets of each class.

 

 

Class Expenses: Expenses that are specific to a class of shares are charged directly to that share class. Fees provided under the distribution (Rule 12b-1) and/or shareholder service plans for a particular class of each Fund are charged to the operations of such class.

 

Investment Transactions and Investment Income: Investment transactions are accounted for on the date the investments are purchased or sold (trade date basis for financial reporting purposes). Realized gains and losses from investment transactions are reported on an identified cost basis. Interest income, which includes accretion of discounts and amortization of premiums, is accrued and recorded as earned based on the effective yield method. Dividend income is recognized on the ex-dividend date. All of the realized and unrealized gains and losses and net investment income are allocated daily to each class in proportion to its average daily net assets.

 

Distributions to Shareholders: Distributions from net investment income for the Fund are declared daily and paid monthly. Distributions from net realized capital gains, if any, are distributed at least annually. Income dividend distributions are derived from interest and other income the Fund receives from its investments, including short-term capital gains. Long term capital gain distributions are derived from gains realized when the Fund sells a security it has owned for more than one year. A Fund may make additional distributions and dividends at other times if its investment adviser has determined that so may be necessary for the Fund to avoid or reduce taxes. Net investment income/(loss) and net realized gain/(loss) may differ for financial statement and tax purposes.

 

COVID-19 Risks: A recent outbreak of respiratory disease caused by a novel coronavirus was first detected in China in December 2019 and has now been detected internationally. This coronavirus has resulted in closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many nations, individual companies, their securities (including equity and debt), and the market in general in ways that cannot necessarily be foreseen at the present time. In addition, the impact of infectious diseases in developing or emerging market countries may be greater due to less established health care systems. Health crises caused by the recent coronavirus outbreak may exacerbate other preexisting political, social and economic risks in certain countries. The impact of the outbreak may be short term or may last for an extended period of time.