NPORT-EX 1 fp0041445_nportex.htm

Portfolio of Investments (Unaudited)

TAX EXEMPT INCOME FUND

March 31, 2019

 

Principal
Amount
     Security      Value 
       MUNICIPAL BONDS—99.1%          
       Alaska—.1%          
$875  M  Northern Tobacco Securitization Settlement Rev. 5% 6/1/2046       $851,970 
       Arizona—1.5%          
       Arizona State Indl. Dev. Authority:          
 875  M  6% 7/1/2049        886,261 
 875  M  5.5% 7/1/2052        879,532 
       Glendale Indl. Dev. Auth. Revenue:          
 875  M  5.25% 11/15/2046        899,832 
 875  M  5% 7/1/2048        903,586 
 5,000  M  Salt River Agric. Impt. & Pwr. 5% 1/1/2038        5,897,800 
                9,467,011 
       California—7.4%          
 5,000  M  California Health Facs. Fing. Auth. Rev. 5.125% 7/1/2020 (a)        5,230,650 
       California State General Obligation:          
 7,000  M  5% 10/1/2026        8,570,310 
 5,000  M  5.25% 9/1/2030        5,707,950 
 5,000  M  5% 11/1/2030        5,672,700 
 5,000  M  5% 8/1/2033        5,731,100 
 8,000  M  5% 9/1/2035        9,434,880 
 700  M  California State Muni Fin. Rev. 5.5% 6/1/2053        741,538 
 875  M  California State Pollution Control 8% 7/1/2039        948,920 
 5,000  M  Orange County Local Trans. Auth. 5% 2/15/2039        6,079,550 
                48,117,598 
       Colorado—.5%          
 525  M  Blue Lake Met. Dist. GO 5.25% 12/1/2048        528,911 
 875  M  Colorado State Health Facs. Auth. Hosp. Rev. 5.25% 11/1/2032        882,779 
 1,000  M  Crowfoot Valley Ranch Met. Dist. GO 5.75% 12/1/2048        1,007,300 
 875  M  South Maryland Creek Ranch GO 5.625% 12/1/2047        882,236 
                3,301,226 
       District of Columbia—2.6%          
       District of Columbia General Obligation:          
 5,000  M  6% 6/1/2021        5,476,600 
 10,000  M  5% 6/1/2034        11,310,200 
                16,786,800 
       Florida—9.7%          
 875  M  Alachua County Hlth. Facs. Auth. Rev. 6.25% 11/15/2044        764,566 
 5,000  M  Broward County Airport Sys. Rev. 5.375% 10/1/2029        5,097,650 
       Capital Trust Agency Revenue:          
 875  M  5% 7/1/2046        905,415 
 875  M  10% 11/1/2020        953,855 
 350  M  7% 10/1/2049        337,645 
 775  M  Collier County Indl. Dev. Auth. Rev. 8.125% 5/15/2044        777,286 
 875  M  Florida State Dev. Fin. Corp. Rev. 6.375% 6/1/2046        656,250 
 4,305  M  Lee County Airport Rev. 5% 10/1/2033        4,968,142 
 5,000  M  Manatee County School Board COP 5.625% 7/1/2021 (a)        5,450,450 
 5,700  M  Miami-Dade County Aviation 5% 10/1/2037        6,430,056 
 5,000  M  Miami-Dade County Prof. Sports Franchise Fac. Tax. Rev.          
       5.375% 10/1/2028        5,095,600 
 5,000  M  Miami-Dade County Pub. Facs. 5.5% 6/1/2019 (a)        5,032,550 
 11,720  M  Miami-Dade County School Board COP 5% 5/1/2028        13,566,838 
 5,000  M  Orange County School Board COP 5.5% 8/1/2019 (a)        5,066,400 
       Sarasota County Util. Sys. Revenue:          
 2,500  M  5% 10/1/2039 (b)        3,020,400 
 2,500  M  5% 10/1/2040 (b)        3,012,825 
 850  M  VOA Lee County FL Indl. Dev. 5.75% 12/1/2052        871,479 
 875  M  Volusia County Indl. Dev. Auth. Rev. 7.25% 7/1/2053        888,545 
                62,895,952 
       Georgia—3.5%          
 5,000  M  Atlanta Airport Revenue 5.25% 1/1/2030        5,317,700 
       Atlanta Water & Wastewater Revenue:          
 3,420  M  5.25% 11/1/2019 (a)        3,494,830 
 1,580  M  5.25% 11/1/2034        1,611,774 
 5,000  M  5% 11/1/2035        5,768,800 
 3,100  M  Fulton County Dev. Auth. Rev. 5% 6/15/2044 (b)        3,699,385 
 2,885  M  Georgia State Environmental Loan Acquisition Corp.          
       5.125% 3/15/2031        2,890,395 
                22,782,884 
       Idaho—.1%          
 775  M  Idaho State Hlth. Facs. Auth. Rev. 8% 10/1/2044        868,186 
       Illinois—4.5%          
 875  M  Bridgeview GO 5.625% 12/1/2041        884,896 
 860  M  Chicago Board of Education GO 5% 12/1/2041        877,578 
 5,430  M  Chicago Board of Education Lease Certificates  6% 1/1/2020        5,556,085 
       Chicago O'Hare Intl. Airport Revenue:          
 5,000  M  6.5% 1/1/2021 (a)        5,432,100 
 5,000  M  5% 1/1/2037        5,845,200 
       Illinois Finance Auth. Revenue:          
 875  M  Admiral Lake Project 5.5% 5/15/2054        894,478 
 875  M  Blue Station Project 5% 12/1/2053        880,941 
 7,000  M  Northwestern Memorial Hospital 5.75% 8/15/2019 (a)        7,107,730 
 385  M  Windy City Portfolio 5.5% 12/01/2052        387,341 
 930  M  Regional Transportation Auth. 7.75% 6/1/2019        939,002 
                28,805,351 
       Indiana—1.2%          
 770  M  Anderson Econ. Dev. Rev. 6% 10/1/2042        813,235 
 5,570  M  Indiana State Fin. Auth. Rev. 5% 2/1/2028        6,711,126 
                7,524,361 
       Louisiana—1.0%          
 875  M  Juban Crossing Econ. Dev. Dist. Rev. 7% 9/15/2044        892,570 
 875  M  Louisiana St. Local Govt. Environmental Dev. Auth. Rev. 5.65% 11/1/2037        960,435 
 4,835  M  Regional Trans. Auth. Zero Coupon 12/1/2021        4,296,139 
                6,149,144 
       Maine—.2%          
 1,235  M  Maine Edl. Ln. Auth. Student Ln. Rev. 5.875% 12/1/2039        1,242,089 
       Massachusetts—3.9%          
 1,045  M  Massachusetts Edl. Fin. Auth. Loan Rev. 5.25% 1/1/2028        1,065,597 
 5,000  M  Massachusetts State Dev. Fin. Agy. Rev. 5% 7/15/2040        6,779,600 
 5,000  M  Massachusetts State GO 5% 7/1/2037        5,737,000 
 10,000  M  Massachusetts State School Bldg. Auth. 5% 8/15/2037        11,535,800 
                25,117,997 
       Michigan—3.6%          
 4,970  M  Detroit Sewer Disp. Sys. Rev. 7.5% 7/1/2019 (a)        5,041,817 
 5,000  M  Detroit Water Supply Sys. Rev. 6.25% 7/1/2019 (a)        5,057,550 
 875  M  Michigan State Tobacco Settlement Fin. Auth. Rev. 6% 6/1/2048        874,991 
 4,500  M  Monroe County Economic Dev. Corp. 6.95% 9/1/2022        5,247,315 
 6,300  M  Wayne County Airport Auth. Rev. 5% 12/1/2045        7,165,368 
                23,387,041 
       New Jersey—5.6%          
 5,000  M  Camden County Impt. Auth. Rev. 5% 1/15/2040        5,698,400 
 5,000  M  New Jersey State Higher Educ. Assist. Student Ln. Rev.          
       5.625% 6/1/2030        5,034,200 
       New Jersey State Transportation Trust Fund Authority:          
 5,000  M  5.75% 6/15/2023        5,673,650 
 5,000  M  5% 12/15/2025        5,689,800 
       New Jersey State Turnpike Auth. Revenue:          
 5,000  M  5% 7/1/2022 (a)        5,549,150 
 5,050  M  5% 1/1/2032        6,084,998 
 1,860  M  5% 1/1/2043        2,018,305 
 700  M  Tobacco Settlement Fing. Corp. Rev. 5% 6/1/2046        739,466 
                36,487,969 
       New York—26.4%          
 500  M  Build New York City Resource Corp. 5.75% 2/1/2049        511,275 
 5,000  M  Metropolitan Trans Auth. 5% 11/15/2036        5,880,850 
 875  M  Nassau County Indl. Dev. Agy. Rev. 6.7% 1/1/2049        882,009 
 5,000  M  New York City GO 5% 6/1/2034        5,767,100 
       New York City Municipal Water Fin. Auth. Revenue:          
 22,000  M  6% 6/15/2021        24,174,040 
 5,000  M  5% 6/15/2039        5,777,550 
       New York City Trans. Fin. Auth. Revenue:          
 6,965  M  Building Aid Rev. 5% 7/15/2031        8,070,346 
       Future Tax:          
 5,000  M  5% 2/1/2035        5,910,100 
 7,500  M  5% 11/1/2038        8,103,525 
 5,000  M  5% 8/1/2042        5,592,150 
       New York State Dorm. Auth. Revenue:          
 10,000  M  New York University 5.75% 7/1/2027        11,985,500 
       Personal Income Tax Revenue:          
 5,000  M  5% 3/15/2031        5,821,000 
 5,000  M  5% 3/15/2035        5,443,300 
 5,000  M  5% 2/15/2037        5,424,250 
       New York State Thruway Authority:          
 1,125  M  5% 1/1/2031        12,904,200 
 5,000  M  5% 1/1/2032        5,635,050 
 5,000  M  New York State Trans. Dev. Corp. 5% 1/1/2033        5,815,450 
 10,000  M  New York State Urban Dev. Corp. 5% 3/15/2035        11,572,900 
       Port Authority of New York & New Jersey:          
 15,000  M  5% 9/15/2025        17,809,950 
 3,105  M  5% 10/15/2029        3,622,076 
       Suffolk Tobacco Asset Securitization:          
 700  M  6.625% 6/1/2044        737,765 
 750  M  6% 6/1/2048        750,997 
 10,000  M  Utility Debt Securitization Auth. 5% 12/15/2037        11,620,900 
 875  M  Westchester County Indl. Dev. Fin. Agy. 7% 6/1/2046        963,944 
                170,776,227 
       Ohio—.5%          
 900  M  Buckeye Tobacco Settlement Fing. Auth. Rev. 5.875% 6/1/2047        879,930 
 1,015  M  Jefferson County GO 5.75% 12/1/2019        1,041,583 
 805  M  Lake County Port & Econ. Dev. Auth. Rev. 6.75% 12/1/2052        822,348 
 445  M  Montgomery County Senior Living 6.25% 4/1/2049        485,584 
                3,229,445 
       Oklahoma—.9%          
 5,000  M  Oklahoma State Turnpike Auth. 5% 1/1/2042        5,707,750 
       Oregon—4.1%          
       Oregon State Dept. Admin. Svcs. Lottery Revenue:          
 6,500  M  5% 4/1/2036        7,714,135 
 2,500  M  5% 4/1/2038 (b)        3,043,250 
 2,000  M  5% 4/1/2039 (b)        2,425,080 
 5,000  M  Oregon State GO 5% 5/1/2044        6,015,500 
 6,650  M  Washington County School District 5% 6/15/2032        7,577,209 
                26,775,174 
       Pennsylvania—3.8%          
 5,000  M  Allegheny County Port Authority Special Rev. 5% 3/1/2025        5,296,650 
 875  M  Dauphin County Gen. Auth. Rev. 5% 10/15/2034        915,819 
 875  M  Pennsylvania State Econ. Dev. Fing. Auth. Rev. 6.75% 12/1/2053        864,500 
       Pennsylvania State Turnpike Commission:          
 6,000  M  5% 12/1/2043        6,522,780 
 5,000  M  5% 12/1/2045        5,629,200 
 5,000  M  Philadelphia Water & Wastewater Rev. 5% 11/1/2028        5,514,750 
                24,743,699 
       Puerto Rico—.1%          
 875  M  Puerto Rico Sales Tax Fing. Corp. 4.75% 7/1/2053        831,836 
       Rhode Island—.2%          
 1,500  M  Convention Center Auth. Rev. 5.25% 5/15/2019 (a)        1,506,765 
       South Carolina—1.0%          
 5,000  M  Piedmont Municipal Power Agency Electric Rev. 5.75% 1/1/2034        5,406,750 
 875  M  South Carolina State Jobs 7% 11/1/2038        885,264 
                6,292,014 
       Texas—8.7%          
 800  M  Brazoria County Indl. Dev. Corp. 9% 3/1/2039        812,968 
 3,330  M  Cypress-Fairbanks ISD TOB Trust 8.723% 2/15/2044 (c)        4,453,875 
 5,000  M  Dallas Area Rapid Transit 5% 12/1/2034        5,743,950 
 8,000  M  Denton ISD GO 5% 8/15/2040        9,111,760 
       Houston Utility System Revenue:          
 4,730  M  5.125% 5/15/2019 (a)        4,750,150 
 5,360  M  5% 11/15/2033        6,033,484 
 875  M  Newark Higher Ed. Fin. Corp. Rev. 5.125% 8/15/2047        887,775 
 1,250  M  Port Beaumont Naval District 8% 2/1/2039        1,275,312 
 5,000  M  San Antonio Airport Sys. Rev. 5.25% 7/1/2035        5,207,050 
 8,475  M  San Antonio ISD 5% 8/15/2029        10,195,934 
 5,000  M  State of Texas TOB Trust 6.485% 8/1/2035 (c)        5,108,200 
       Tarrant County Cultural Edu. Facs. Fin. Corp. Revenue:          
 875  M  10% 3/15/2023        874,834 
 825  M  6.375% 2/15/2048        897,996 
 800  M  Woodloch Health Facs. Dev. Corp. 7.125% 12/1/2051        814,752 
                56,168,040 
       Utah—2.7%          
       Salt Lake City Airport Revenue:          
 10,000  M  5% 7/1/2036        11,744,800 
 5,000  M  5% 7/1/2038        5,832,250 
                17,577,050 
       Virginia—.1%          
 875  M  Tobacco Settlement Fing. Corp. Rev. 5.2% 6/1/2046        878,307 
       Washington—1.9%          
 5,000  M  Central Puget Sound Regl. Trans. Auth. Sales & Use 5% 11/1/2045        5,664,100 
 875  M  King County Public Hosp. District Rev. 6.25% 12/1/2045        901,854 
 5,000  M  Washington State Health Care Facs. Auth. Rev. 6.375% 10/1/2033        5,020,700 
 800  M  Washington State Housing Fin. Comm. Rev. 7% 7/1/2045        867,024 
                12,453,678 
       West Virginia—.1%          
 700  M  West Virginia State Econ. Dev. Auth. 8.75% 2/1/2036        709,793 
       Wisconsin—3.2%          
 875  M  Public Finance Auth. Educ. Fin. Auth. Rev.  6.125% 2/1/2048        887,565 
 12,000  M  Superior Wisconsin Ltd. Oblig. Rev. 6.9% 8/1/2021        13,364,400 
 825  M  Vista Grande Villa Public Fin. Auth. Rev. 6.5% 7/1/2050        836,707 
 5,000  M  Wisconsin State Hlth & Edl. Facs. Auth. Rev. 5% 11/15/2041        5,341,800 
                20,430,472 
Total Value of Municipal Bonds (cost $613,060,480)   99.1%   641,865,829 
Other Assets, Less Liabilities   .9    6,041,831 
Net Assets   100.0%  $647,907,660 

 

At March 31, 2019, the cost of municipal investments for federal income tax purposes was $613,060,480. Accumulated net unrealized appreciation on investment was $24,805,349, consisting of $29,435,067 gross unrealized appreciation and $629,718 gross unrealized depreciation.

 

 

 

Portfolio of Investments (Unaudited)

TAX EXEMPT OPPORTUNITIES FUND

March 31, 2019

 

Principal
Amount
     Security      Value 
       Municipal Bonds—99.6%          
       Alaska—.8%          
$3,000  M  Matanuska-Susitna Boro Lease Rev. 6% 9/1/2019 (a)       $3,055,035 
 375  M  Northern Tobacco Securitization Settlement Rev. 5% 6/1/2046        365,130 
                3,420,165 
       Arizona—.5%          
       Arizona State Indl. Dev. Authority:          
 500  M  6% 7/01/2049        506,435 
 375  M  5.5% 7/1/2052        376,943 
       Glendale Indl. Dev. Auth. Revenue:          
 200  M  5% 11/15/2045        206,492 
 415  M  5.25% 11/15/2046        426,778 
 375  M  5% 7/1/2048        387,251 
 300  M  5% 11/15/2053        308,289 
                2,212,188 
       California—10.6%          
 1,000  M  Bay Area Toll Auth. 5% 4/1/2044        1,189,220 
 13,750  M  California Edl. Facs. Auth. Rev. 5% 3/15/2039        18,454,700 
       California State:          
 1,540  M  5% 8/1/2033        1,765,179 
 1,900  M  5% 4/1/2038        2,310,058 
 5,000  M  California State GO 5% 4/1/2037        5,542,850 
 300  M  California State Muni Fin. Rev. 5.5% 6/1/2053        317,802 
 375  M  California State Poll. Control Fin. Rev. 8% 7/1/2039        406,680 
 500  M  Golden State Tobacco Securitization 5% 6/1/2047        498,990 
 7,500  M  Los Angeles County Met. Trans. Auth. 5% 7/1/2044        8,964,825 
 1,370  M  Sacramento Wastewater Rev. 5% 9/1/2037 (b)        1,680,579 
 5,000  M  San Francisco City & County Airports 5% 5/1/2044        5,889,750 
                47,020,633 
       Colorado—1.9%          
 225  M  Blue Lake Met. Dist. GO 5.25% 12/1/2048        226,676 
 375  M  Colorado State Health Facs. Auth. Hosp. Rev. 5.25% 11/1/2032        378,334 
 500  M  Crowfoot Valley Ranch Met. Dist. GO 5.75% 12/1/2048        503,650 
 6,000  M  Denver City & County Airport Rev. 5% 12/1/2043        6,965,100 
 500  M  South Maryland Creek Ranch GO 5.625% 12/1/2047        504,135 
                8,577,895 
       Connecticut—2.2%          
       Connecticut State Hlth. & Educ. Facs. Auth. Revenue:          
 500  M  Ascension Health Credit Group 5% 11/15/2040        508,585 
 510  M  Greenwich Academy 5.25% 3/1/2032        643,921 
 1,000  M  Sacred Heart University 5% 7/1/2037        1,145,030 
 1,000  M  State Supported Child Care 5% 7/1/2028        1,062,400 
 1,000  M  Wesleyan University 5% 7/1/2020 (a)        1,043,570 
 500  M  Yale-New Haven Hospital 5.25% 7/1/2020 (a)        522,690 
 500  M  Connecticut State Transmission Muni. Elec. Energy Rev. 5% 1/1/2030        540,055 
 855  M  Hartford 5% 4/1/2021 (a)        911,567 
 1,000  M  Hartford Cnty. Met. Dist. Clean Water Project Rev. 5% 4/1/2036        1,079,060 
 750  M  Stamford Water Pollution Control Sys. & Fac. Rev. 5.5% 8/15/2038        864,750 
 400  M  Stratford 5% 7/1/2035        456,212 
 1,000  M  Waterbury 5% 12/1/2032        1,115,760 
                9,893,600 
       District of Columbia—.8%          
 1,975  M  Metropolitan Washington D.C. Airport Auth. 5% 10/1/2035        2,279,486 
 1,000  M  Washington DC Met. Area Transit Auth. Rev. 5% 7/1/2043        1,163,190 
                3,442,676 
       Florida—3.4%          
 375  M  Alachua County Hlth. Facs. Auth. Rev. 6.25% 11/15/2044        327,671 
 5,000  M  Broward County Airport Sys. Rev. 5.25% 10/1/2030        5,696,900 
       Capital Trust Agency Revenue:          
 375  M  10% 11/1/2020        408,795 
 150  M  6.75% 10/1/2037        144,789 
 500  M  5% 7/1/2046        517,380 
 320  M  7% 10/1/2049        308,704 
 335  M  Collier County Indl. Dev. Auth. Rev. 8.125% 5/15/2044        335,988 
 3,000  M  Davie Educational Facs. Rev. 5% 4/1/2038        3,421,350 
 375  M  Florida St. Dev. Fin. Corp Rev. 6.375% 6/1/2046        281,250 
 375  M  Lee County Indl. Dev. Auth. Rev. 5.75% 12/1/2052        384,476 
 1,250  M  Manatee County School Dist. Rev. 5% 10/1/2032        1,469,738 
 1,500  M  Miami-Dade County Hlth. Facs. Auth. Rev. 5% 8/1/2042        1,705,965 
 375  M  Volusia County Indl. Dev. Auth. Rev. 7.25% 7/1/2053        380,805 
                15,383,811 
       Georgia—2.0%          
 5,000  M  Atlanta Airport Rev. 5.25% 1/1/2030        5,313,250 
 2,500  M  Bibb County Dev. Auth. Rev. 5.75% 7/1/2040        2,697,075 
 920  M  Georgia St. Environmental Loan Acquisition Corp. 5.125% 3/15/2031        921,720 
                8,932,045 
       Hawaii—3.5%          
 2,500  M  Hawaii State Harbor Sys. Rev. 5.25% 7/1/2030        2,607,000 
 3,750  M  Honolulu City & County GO 5% 9/1/2041        4,447,988 
 7,600  M  Honolulu City & County Wastewater Sys. Rev. 5% 7/1/2040        8,681,328 
                15,736,316 
       Idaho—.1%          
 330  M  Idaho State Hlth. Facs. Auth. Rev. 8% 10/1/2044        369,679 
       Illinois—2.5%          
 500  M  Bridgeview GO 5.625% 12/1/2041        505,655 
 365  M  Chicago Board of Education GO 5% 12/1/2041        372,461 
       Chicago O'Hare Intl. Airport Revenue:          
 5,000  M  6.5% 1/1/2021 (a)        5,432,100 
 1,690  M  5% 1/1/2037        1,975,678 
 600  M  5% 1/1/2038        699,000 
       Illinois State Fin. Auth. Revenue:          
 375  M  Admiral Lake Project 5.5% 5/15/2054        383,347 
 375  M  Blue Station Project 5% 12/1/2053        377,546 
 165  M  Windy City Portfolio 5.5% 12/1/2052        166,003 
 1,000  M  Illinois State Sales Tax Rev. 6% 6/15/2026        1,186,570 
                11,098,360 
       Indiana—.1%          
 330  M  Anderson Econ. Dev. Rev. 6% 10/1/2042        348,529 
       Louisiana—.2%          
 375  M  Juban Crossing Econ. Dev. Dist. Rev. 7% 9/15/2044        382,530 
 375  M  Louisiana St. Local Govt. Environmental Dev. Auth. Rev. 5.65% 11/1/2037        411,615 
                794,145 
       Massachusetts—6.2%          
 500  M  Boston Water & Sewer Commission Rev. 5% 11/1/2030        555,685 
 1,000  M  Massachusetts State College Building Auth. 5% 5/1/2020 (a)        1,037,800 
       Massachusetts State Dev. Fin. Agy. Revenue:          
 1,000  M  Boston College 5% 7/1/2039        1,175,500 
 750  M  Boston University 5.6% 10/1/2019 (a)        765,367 
 500  M  Emerson College 5% 1/1/2038        566,885 
 1,000  M  Lesley University 5.25% 7/1/2033        1,075,830 
 500  M  Phillips Academy 5% 9/1/2038        559,225 
 800  M  Williams College 4% 7/1/2046        853,408 
 200  M  Massachusetts State Edl. Fing. Auth. 6% 1/1/2028        204,744 
       Massachusetts State General Obligation:          
 1,000  M  5.5% 8/1/2030        1,318,020 
 5,000  M  5% 8/1/2035        5,354,100 
 1,000  M  Massachusetts State Hsg. Fin. Agy. Rev. 5.25% 12/1/2035        1,038,460 
       Massachusetts State Port Authority:          
 4,000  M  5% 7/01/2037        4,798,320 
 2,945  M  5% 7/01/2039        3,507,171 
 1,825  M  5% 7/01/2040        2,167,315 
 1,000  M  Massachusetts State Sch. Bldg. Auth. Sales Tax Rev. 5% 10/15/2032        1,077,080 
 500  M  Quincy GO 5% 12/1/2028        527,475 
 1,000  M  University of Massachusetts Bldg. Auth. Proj. Rev. 5% 11/1/2039        1,097,130 
                27,679,515 
       Michigan—4.1%          
 1,000  M  Detroit Sewer Disp. 7.5% 7/1/2019 (a)        1,014,450 
 1,000  M  Goodrich Area School District 5.5% 5/1/2032        1,078,560 
 1,000  M  Kent Hosp. Fin. Auth. Rev. 5% 11/15/2029        1,075,500 
 5,000  M  Lansing Brd. Wtr. & Lt. Utility Sys. Rev. 5.5% 7/1/2041        5,395,500 
       Michigan State Bldg. Auth. Revenue:          
 1,000  M  5.25% 10/15/2025        1,019,180 
 1,000  M  5% 10/15/2029        1,075,530 
 525  M  Michigan State Tobacco Settlement Fin. Auth. Rev. 6% 6/1/2048        524,995 
 500  M  Monroe County Economic Dev. Corp. 6.95% 9/1/2022        583,035 
 180  M  Novi Community School District 5% 5/1/2037        208,960 
 500  M  Saginaw Water Supply System Rev. 5% 7/1/2031        538,625 
 1,000  M  Wayne Charter County Capital Improvement 5% 2/1/2030        1,002,310 
       Wayne County Airport Authority Revenue:          
 2,500  M  5% 12/1/2042        2,741,600 
 750  M  5% 12/1/2045        853,020 
 1,000  M  Wyandotte Electric Rev. 5.25% 4/1/2019 (a)        1,000,000 
                18,111,265 
       Minnesota—.9%          
 500  M  Bemidji 5% 2/1/2021 (a)        531,380 
 300  M  Minneapolis Dev. Rev. Ltd. Tax Supported 6.25% 12/1/2030        321,996 
 750  M  Minnesota State Agric. & Econ. Dev. Brd. Rev. Health Care Rev. 5% 2/15/2030        768,030 
       Minnesota State Housing Finance Agency Revenue:          
 5  M  Multi-Family Housing 5.05% 7/1/2034        5,022 
       Rental Housing Revenue:          
 250  M  5% 8/1/2031        268,300 
 300  M  5.05% 8/1/2031        315,972 
 250  M  Minnesota State Municipal Pwr. Agy. Elec. Sys. Rev. 5.25% 10/1/2035        262,892 
       St. Cloud Health Care Revenue:          
 500  M  5.375% 5/1/2019 (a)        501,530 
 250  M  5.125% 5/1/2020 (a)        259,510 
       St. Paul Hsg. & Redev. Auth. Health Care Revenue:          
 380  M  5.25% 11/15/2019 (a)        388,626 
 370  M  5.25% 11/15/2029        378,632 
                4,001,890 
       Mississippi—1.3%          
       Mississippi Dev. Bk. Special Obligation:          
       Jackson County Ltd. Tax Revenue:          
 2,660  M  5.375% 7/1/2029        2,685,323 
 2,000  M  5.625% 7/1/2039        2,019,920 
 1,000  M  Jackson Wtr. & Swr. Sys. Proj. 6.75% 12/1/2030        1,195,160 
                5,900,403 
       Missouri—1.1%          
       Kansas City Special Obligation Revenue:          
 4,000  M  5% 9/1/2034        4,051,440 
 1,000  M  5% 9/1/2037        1,012,490 
                5,063,930 
       New Jersey—3.6%          
       Bloomfield Township General Obligation:          
 1,095  M  4% 12/15/2039 (b)        1,195,817 
 720  M  4% 12/15/2040 (b)        782,935 
 1,500  M  New Jersey State Educational Facs. Auth. Rev. 5% 7/1/2035        1,753,305 
       New Jersey State Transportation Trust Fund Authority:          
 2,000  M  5% 12/15/2028        2,327,340 
 2,205  M  5% 6/15/2029        2,546,775 
 6,000  M  New Jersey State Turnpike Auth. Rev. 5% 1/1/2045        6,707,580 
 800  M  Tobacco Settlement Fing. Corp. Rev. 5% 6/1/2046        845,104 
                16,158,856 
       New York—20.3%          
 400  M  Build New York City Resource Corp. 5.75% 2/1/2049        409,020 
       Long Island Power Auth. Revenue:          
 2,000  M  5% 9/1/2038        2,369,540 
 3,000  M  5% 9/1/2041        3,438,420 
 4,110  M  Metropolitan Transportation Auth. Rev. Green Bond 5% 11/15/2036        4,834,059 
 375  M  Nassau County Indl. Dev. Agy. Rev. 6.7% 1/1/2049        378,004 
       New York City General Obligation:          
 5,495  M  5% 6/1/2034        6,338,043 
 2,000  M  5% 4/1/2035        2,406,040 
 4,500  M  5% 12/1/2037        5,249,970 
 5,000  M  5% 12/1/2041        5,780,300 
       New York City Trans. Fin. Auth. Revenue:          
 7,500  M  Building Aid Rev. 5% 7/15/2037        8,460,475 
 5,000  M  Future Tax 5% 5/1/2032        5,903,700 
       New York State Dormitory Auth. Revenue:          
       Personal Income Tax Revenue:          
 5,000  M  5% 3/15/2031        5,821,000 
 5,000  M  5% 3/15/2034        5,445,200 
       Sales Tax Revenue:          
 4,000  M  5% 3/15/2039        4,682,960 
 1,000  M  5% 3/15/2041        1,165,050 
 6,120  M  5% 3/15/2042        7,118,356 
 6,250  M  New York State Thruway Auth. 5% 1/1/2031        7,169,000 
 3,000  M  New York State Transportation Rev. 5% 1/1/2033        3,489,270 
 6,895  M  New York State Urban Dev. Corp. 5% 3/15/2037        8,300,339 
       Suffolk Tobacco Asset Securitization:          
 300  M  6.625% 6/1/2044        316,185 
 200  M  6% 6/1/2048        200,266 
 775  M  Westchester County Ind. Dev. Auth. Rev. 7% 6/1/2046        853,779 
                90,128,976 
       North Carolina—3.1%          
 1,000  M  Buncombe County Enterprise Sys. Rev. 5% 7/1/2019 (a)        1,008,700 
 1,000  M  Charlotte COP 5% 6/1/2029        1,005,380 
 1,000  M  Charlotte Water & Sewer Sys. Rev. 5% 7/1/2040        1,155,410 
 465  M  Dare County Utilities Sys. Rev. 5% 2/1/2021 (a)        494,616 
 1,000  M  Nash Health Care Sys. Rev. 5.5% 11/1/2026        1,017,480 
 500  M  North Carolina State Capital Facs. Fin. Agy. Rev. 5% 10/1/2041        570,245 
 5,890  M  North Carolina Turnpike Authority Rev. 5% 1/1/2036        6,968,930 
 1,000  M  Oak Island Enterprise Sys. Wastewater Rev. 6% 6/1/2019 (a)        1,007,320 
 500  M  University of North Carolina Hosp. Chapel Hill Rev. 5% 2/1/2046        564,615 
                13,792,696 
       Ohio—1.7%          
       Buckeye Tobacco Settlement Fing. Auth. Revenue:          
 125  M  5.75% 6/1/2034        120,867 
 380  M  5.875% 6/1/2047        371,526 
 500  M  Defiance City School District GO 5% 12/1/2039        550,545 
 500  M  Franklin County Hospital Facs. Rev. 5% 5/15/2030        559,670 
 100  M  Jefferson Cnty Jail Construction GO 5.75% 12/1/2019        102,619 
 495  M  Lake County Port & Econ. Dev. Auth. Rev. 6.75% 12/1/2052        505,667 
 500  M  Madison Local School District Richland County 5% 12/1/2034        545,755 
       Montgomery County Senior Living:          
 250  M  6% 4/01/2038 (b)        270,950 
 250  M  6.25% 4/01/2049        272,800 
       Ohio State Higher Educational Facilities Revenue:          
 50  M  Oberlin College 5% 10/1/2042        57,642 
 500  M  University of Dayton Proj. 5.375% 12/1/2030        528,420 
 300  M  Ohio State Turnpike Comm. Rev. 5% 2/15/2028        334,275 
 1,000  M  Summit County Port Auth. Rev. 5.375% 12/1/2030        1,061,250 
 1,000  M  Toledo Waterworks Rev. 5% 11/15/2038        1,103,480 
 1,000  M  University of Akron General Receipts 5% 1/1/2028        1,023,240 
                7,408,706 
       Oregon—1.0%          
 500  M  Multnomah County Hospital Facs. Auth. 5.4% 10/1/2044        537,300 
 2,500  M  Oregon State GO 5% 5/1/2044        3,007,750 
 630  M  Redmond GO 5% 6/1/2036        758,079 
                4,303,129 
       Pennsylvania—8.7%          
 1,000  M  Allegheny County Hosp. Dev. Auth. Rev. 5.375% 8/15/2029        1,013,410 
 6,000  M  Allegheny County Port Auth. Spl. Rev. 5.25% 3/1/2024        6,392,280 
 1,000  M  Bucks County Water & Sewer Auth. Rev. 5% 12/1/2020 (a)        1,057,960 
 250  M  Capital Region Water Rev. 5% 7/15/2038        290,847 
 1,000  M  Central Bradford Progress Auth. Hosp. Rev. 5.5% 12/1/2031        1,082,840 
 1,000  M  Cheltenham Township School District 5% 3/15/2038        1,130,380 
 1,000  M  Commonwealth Fing. Auth. Rev. 5% 6/1/2031        1,004,880 
       Dauphin County Gen. Auth. University Revenue:          
 375  M  5% 10/15/2034        392,494 
 150  M  5.125% 10/15/2041        155,184 
 1,500  M  Delaware County Auth. Rev. 5% 10/1/2042        1,739,715 
 500  M  Delaware County Regl. Water Quality Control Auth. Rev. 5% 5/1/2040        564,705 
       Erie Parking Auth. Facs. Revenue:          
 260  M  5.2% 9/1/2020 (a)        273,179 
 740  M  5.2% 9/1/2035        771,413 
 1,000  M  Erie Water Auth. Rev.  5% 12/1/2031        1,020,260 
 2,500  M  Newtown Township Swr. Auth. Rev. 5% 9/1/2043        2,874,350 
 500  M  North Penn Water Auth. Rev. 5% 11/1/2032        537,740 
 1,000  M  Penn Delco School District GO 5% 6/1/2034        1,114,840 
 1,205  M  Penn Manor School District GO 5% 3/1/2037        1,392,112 
 500  M  Pennsylvania State Econ. Dev. Fing. Auth. Rev. 6.75% 12/1/2053        494,000 
       Pennsylvania State Turnpike Comm. Revenue:          
 1,000  M  5% 12/1/2021 (a)        1,086,120 
 2,500  M  5% 12/1/2039        2,791,025 
 2,000  M  5% 12/1/2043        2,339,940 
 1,000  M  5% 12/1/2044        1,110,880 
 635  M  5% 12/1/2045        714,908 
 500  M  Philadelphia Hosp. & Higher Educ. Facs. Rev. 5% 7/1/2032        533,620 
 1,000  M  Philadelphia Water & Wastewater Rev. 5% 11/1/2028        1,102,950 
 1,000  M  Pittsburgh 5% 9/1/2035        1,177,040 
 1,000  M  Scranton Sewer Auth. Rev. 5.25% 12/1/2021 (a)        1,098,100 
 500  M  State Pub. Sch. Bldg. Rev 5.5% 3/1/2031        531,815 
 1,500  M  Upper Saint Clair School District 5% 10/1/2041        1,674,750 
 1,000  M  Woodland Hills School District 5% 9/1/2043        1,137,520 
                38,601,257 
       Puerto Rico—.1%          
 500  M  Puerto Rico Sales Tax Fing. Corp. 4.75% 7/1/2053        475,335 
       Rhode Island—.3%          
 1,415  M  Rhode Island Hth. & Edl. Bldg. Corp. Rev. 5.25% 9/15/2029        1,436,437 
       South Carolina—.1%          
 375  M  South Carolina State Jobs Rev. 7% 11/1/2038        379,399 
       Tennessee—1.3%          
 5,020  M  Metropolitan Nashville Arpt. Auth. Rev. 5% 7/1/2045        5,657,389 
       Texas—10.0%          
 3,610  M  Alamo Regional Mobility Rev. 5% 6/15/2046        4,064,391 
 400  M  Brazoria County Indl. Dev. Corp. 9% 3/1/2039        406,484 
 5,000  M  Dallas-Fort Worth Intl. Arpt. Rev. 5.25% 11/1/2030        5,724,900 
 2,165  M  Little Elm ISD GO 5% 8/15/2037        2,322,893 
 1,750  M  Montgomery County Toll Road Auth. Rev. 5% 9/15/2037        1,923,793 
 500  M  New Hope Cultural Edl. Facs. Fin. Corp. 5.25% 10/1/2049        523,995 
 375  M  Newark Higher Ed. Fin. Corp. Rev. 5.125% 8/15/2047        380,475 
 2,000  M  North Texas Tollway Auth. Rev. 5% 1/1/2040        2,180,880 
       Northwest ISD General Obligation:          
 10,000  M  5% 2/15/2042        11,443,600 
 1,335  M  5% 2/15/2045        1,503,878 
 750  M  Port Beaumont Naval District 8% 2/1/2039        765,188 
 10,000  M  Rockwall ISD GO 5% 2/15/2046        11,233,800 
       Tarrant County Cultural Edu. Facs. Fin. Corp. Revenue:          
 375  M  10% 3/15/2023        374,929 
 350  M  6.375% 2/15/2048        380,968 
 500  M  6.75% 11/15/2047        562,745 
 345  M  Woodloch Health Facs. Dev. Corp. 7.125% 12/1/2051        351,362 
                44,144,281 
       Utah—1.1%          
 4,000  M  Salt Lake City Airport Rev. 5% 7/1/2036        4,697,920 
       Virginia—3.8%          
 1,000  M  Arlington County Indl. Dev. Auth. Rev. 5% 2/15/2020 (a)        1,030,460 
 1,000  M  Fairfax County Indl. Dev. Auth. Rev. 5.25% 5/15/2019 (a)        1,004,390 
 1,000  M  Hopewell 5.875% 7/15/2019 (a)        1,012,410 
 500  M  Hopewell Sewer Sys. Rev. 5% 7/15/2033        516,840 
 1,000  M  New River Vy. Regl. Jail Facs. Rev. 5% 10/1/2038        1,149,970 
 1,000  M  Norfolk Econ. Dev. Auth. Hlth. Care Facs. Rev. 5% 11/1/2043        1,086,690 
 1,000  M  Norfolk GO 5% 8/1/2023 (a)        1,143,040 
 500  M  Powhatan County GO 5% 1/15/2032        512,740 
 500  M  Prince William County Indl. Dev. Auth. 5.5% 9/1/2021 (a)        546,235 
 1,000  M  Rappahannock Regl. Jail Facs. Rev. 5% 10/1/2035        1,170,410 
 500  M  Richmond Public Util. Rev. 5% 1/15/2038        553,585 
 375  M  Tobacco Settlement Fing. Corp. Rev. 5.2% 6/1/2046        376,417 
 1,000  M  Virginia State College Bldg. Auth. Facs. Rev. 5% 9/1/2029        1,160,000 
       Virginia State Res. Auth. Infrastructure Revenue:          
 575  M  5% 11/1/2029        586,483 
 1,000  M  5% 11/1/2045        1,170,830 
 1,000  M  Washington County Indl. Dev. Auth. Lease Rev. 5.25% 8/1/2020 (a)        1,049,060 
 1,745  M  Western Virginia Reg. Jail. Auth. Rev. 5% 12/1/2037        2,018,738 
 500  M  Winchester Econ. Dev. Auth. Hosp. Rev. 5% 1/1/2035        569,520 
                16,657,818 
       Washington—.2%          
 375  M  King County Public Hosp. District Rev. 6.25% 12/1/2045        386,509 
 350  M  Washington State Housing Fin. Comm. Rev. 7% 7/1/2045        379,323 
                765,832 
       West Virginia—.1%          
 300  M  West Virginia State Econ. Dev. Auth. Rev. 8.75% 2/1/2036        304,197 
       Wisconsin—2.0%          
 500  M  Cornerstone Charter Academy Proj. 5.125% 2/1/2046        504,695 
 375  M  Public Finance Auth. Educ. Fin. Auth. Rev. 6.125% 2/1/2048        380,385 
 350  M  Vista Grande Villa Public Fin. Auth. Rev. 6.5% 7/1/2050        354,966 
 6,650  M  Wisconsin State GO 5% 5/1/2032        7,685,206 
                8,925,252 
Total Value of Municipal Bonds (cost $422,289,837)        441,824,525 
       SHORT-TERM TAX EXEMPT INVESTMENTS—.6%          
 2,500  M  Syracuse Indl. Dev. Agency          
       Adjustable Rate Note 1.48% (d) (cost $2,500,000)        2,500,000 
Total Value of Municipal Investments (cost $424,789,837)   100.2%   444,324,525 
Excess of Liabilities Over Other Assets   (.2)   (888,570)
Net Assets   100.0%  $443,435,955 

 

At March 31, 2019, the cost of municipal investments for federal income tax purposes was $424,789,837. Accumulated net unrealized appreciation on investment was $19,534,688, consisting of $19,785,182 gross unrealized appreciation and $250,494 gross unrealized depreciation. 

 

 

Portfolio of Investments (Unaudited)

CALIFORNIA TAX EXEMPT FUND

March 31, 2019

 

Principal
Amount
     Security      Value 
       MUNICIPAL BONDS—99.2%          
       Airport—8.9%          
$2,000  M  San Francisco City & County Airports 5% 5/1/2034       $2,421,080 
       San Jose Airport Revenue:          
 575  M  5% 3/1/2036        679,742 
 570  M  5% 3/1/2037        671,437 
 1,000  M  5% 3/1/2042        1,163,250 
                4,935,509 
       Appropriation—2.1%          
 1,000  M  Palo Alto COP 5% 11/1/2044        1,191,760 
       Education—9.6%          
       California Educ. Facs. Auth. Revenue:          
 500  M  Harvey Mudd College 5.25% 12/1/2031        548,135 
 1,100  M  Stanford University 5.25% 4/1/2040        1,526,316 
 300  M  California School Fin. Auth. 5.875% 10/1/2044        323,829 
 1,000  M  California State Muni Fin. Auth. 5% 1/1/2032        1,168,820 
 1,500  M  University of California Rev. 5% 5/15/2043        1,778,280 
                5,345,380 
       Electric—2.1%          
 1,000  M  Los Angeles Department of Water & Power 5% 7/1/2042        1,162,560 
       General Obligation—22.7%          
       California State Various Purpose:          
 1,000  M  5% 9/1/2031        1,127,870 
 2,000  M  5% 4/1/2037        2,217,140 
 1,000  M  Fresno Unified School District 5% 8/1/2041        1,163,500 
 1,000  M  Healdsburg Unified School District 5% 8/1/2040        1,158,810 
 1,000  M  Lake Tahoe Unified School District 5.375% 8/1/2029        1,012,470 
 1,000  M  Los Angeles Unified School District 5% 7/1/2040        1,142,280 
 1,000  M  Moreno Valley Unified School District 5% 8/1/2043        1,191,040 
 215  M  Natomas Unified School District 5.95% 9/1/2021        226,973 
 1,000  M  New Haven Unified School District 5% 8/1/2040        1,134,510 
 1,000  M  San Diego Unified School District 5% 7/1/2040        1,144,760 
 1,000  M  West Contra Costa Unified School District 5.25% 8/1/2032        1,091,340 
                12,610,693 
       Health Care—2.0%          
 1,000  M  California Health Facs. Fin. Auth. Rev. 5% 8/15/2043        1,131,390 
       Hospital—.6%          
 300  M  California Statewide Communities Dev. Authority          
       (Loma Linda University Medical Center) 5.25% 12/ 1/2056        328,218 
       Housing—1.6%          
       California Statewide Communities Dev. Authority:          
 550  M  NCCD-Hooper Street LLC 5.25% 7/1/2052        590,541 
 300  M  Provident Group-Pomoma Properties 5.75% 1/15/2045        318,441 
                908,982 
       Lease—4.6%          
 750  M  California State Municipal Fin. Auth. 5% 6/1/2043        879,743 
       California State Public Works Lease Revenue:          
 500  M  5% 12/1/2029        541,745 
 1,000  M  5.5% 11/1/2030        1,148,570 
                2,570,058 
       Other Revenue—.6%          
 300  M  California State Pollution Control 8% 7/1/2039        325,344 
       Other Tax—9.0%          
 500  M  Los Angeles County Metropolitan Trans. Auth. 5% 7/1/2032        620,605 
 2,000  M  Orange County Local Transportation 5% 2/15/2039        2,431,820 
 300  M  Puerto Rico Sales Tax Rev. 4.75% 7/1/2053        285,201 
 1,200  M  Sacramento Convention Center 5% 6/1/2038        1,430,412 
       Virgin Islands Public Finance Auth. Revenue:          
 150  M  4% 10/1/2022        144,000 
 100  M  5% 10/1/2029        97,000 
                5,009,038 
       Pre-Refunded/Escrowed-to-Maturity—15.9%          
 1,000  M  Alhambra Unified School District 5.25% 8/1/2019 (a)        1,012,900 
 500  M  Anaheim Public Fing. Auth. Rev. 5% 4/1/2021 (a)        536,870 
 1,000  M  Bay Area Toll Auth. Toll Bridge Rev. 5% 4/1/2023 (a)        1,141,990 
 1,000  M  California State Public Works Lease Rev. 5% 9/1/2022 (a)        1,123,510 
 500  M  California Statewide Communities Dev. Auth. Rev. 5.5% 8/15/2026        527,840 
 1,000  M  Centinela Valley Union School District 5% 8/1/2021 (a)        1,085,610 
 1,000  M  College of the Sequoias 5.25% 8/1/2019 (a)        1,012,730 
 1,000  M  Imperial Irrigation District Elec. Rev. 6.25% 11/1/2020 (a)        1,076,690 
 1,000  M  Riverside County Trans. Commission Sales Tax Rev. 5% 6/1/2020 (a)        1,042,230 
 250  M  San Joaquin County Trans. Auth. Sales Tax 5.75% 3/1/2021 (a)        270,710 
                8,831,080 
       Tobacco—2.7%          
 400  M  Golden State Tobacco Securitization 5% 6/1/2047        399,192 
 1,000  M  Golden State Tobacco Settlement 5% 6/1/2045        1,119,420 
                1,518,612 
       Toll & Turnpike—4.3%          
 2,000  M  Bay Area Toll Bridge Rev. 5% 4/1/2044        2,378,440 
       Transportation—2.8%          
 375  M  Guam Port Authority Port Rev. 5% 7/1/2048        421,106 
 1,000  M  San Francisco Muni. Transportation Agy. Rev. 5% 3/1/2032        1,118,290 
                1,539,396 
       Water/Sewer—9.7%          
       Los Angeles Wastewater Sys. Revenue:          
 1,000  M  5% 6/1/2035        1,161,320 
 1,000  M  5% 6/1/2038        1,210,130 
 500  M  Sacramento Wastewater Revenue 5% 9/1/2037 (b)        613,350 
 2,000  M  Southern California Water Replenishment 5% 8/1/2043        2,374,820 
                5,359,620 
Total Value of Municipal Bonds (cost $52,231,207)        55,146,080 
       SHORT-TERM TAX EXEMPT INVESTMENTS—.9%          
 500  M  Irvine Ranch Water District          
       Adjustable Rate Note 1.28% (d) (cost $500,000)        500,000 
Total Value of Municipal Investments (cost $52,731,207)   100.1%   55,646,080 
Excess of Liabilities Over Other Assets   (.1)   (69,691)
Net Assets   100.0%  $55,576,389 

 

At March 31, 2019, the cost of municipal investments for federal income tax purposes was $52,731,207. Accumulated net unrealized appreciation on investment was $2,914,873, consisting entirely of gross unrealized appreciation. 

 

 

Portfolio of Investments (Unaudited)

NEW JERSEY TAX EXEMPT FUND

March 31, 2019

 

Principal
Amount
     Security      Value 
       MUNICIPAL BONDS—100.9%          
       Airport—3.0%          
$1,265  M  Port Authority of New York & New Jersey 5% 11/15/2036       $1,464,048 
       Appropriation—8.0%          
 1,000  M  Garden St. Preservation Trust Open Space & Farmland          
       5.75% 11/1/2028        1,230,300 
 1,000  M  New Jersey St. Health Care Facs. Fing. Auth. Rev. 5.75% 10/1/2031        1,020,470 
       New Jersey St. Trans. Trust Fund Auth. Trans. Sys. Revenue:          
 1,000  M  5.5% 12/15/2020        1,059,140 
 500  M  5% 12/15/2023        557,175 
                3,867,085 
       Education—15.6%          
       New Jersey Educational Facilities Auth. Revenue:          
       Montclair State University:          
 1,000  M  5% 7/1/2036        1,133,100 
 1,000  M  5% 7/1/2039        1,112,900 
 2,500  M  Princeton University 5% 7/1/2032        3,075,200 
 1,000  M  Ramapo College 5% 7/1/2035        1,168,870 
 1,000  M  New Jersey State Higher Education Assistance Auth. Loan Rev.          
       5.625% 6/1/2030        1,006,840 
                7,496,910 
       General Obligation—23.7%          
 500  M  Bayonne 5% 7/1/2039        562,270 
 1,000  M  Belleville Township Board of Education 4% 9/1/2037        1,055,660 
 1,000  M  Bergen County Impt. Auth. 5% 2/15/2039        1,132,770 
 500  M  Bloomfield Township 4% 12/15/2040 (b)        543,705 
 1,000  M  Camden County Impt. Auth. Rev. 5% 1/15/2040        1,139,680 
 560  M  Edgewater Board of Education 4% 3/1/2040        595,610 
 1,000  M  Essex County Impt. Auth. Rev. 5.5% 10/1/2027        1,267,770 
 1,000  M  Ewing Township School District 4% 7/15/2036        1,083,620 
 1,870  M  Hudson County 4% 6/15/2038        2,005,369 
 1,000  M  Livingston Twp. Sch. Dist. 5% 7/15/2037        1,156,340 
 415  M  Montclair Twp. 5% 1/1/2037        471,623 
 330  M  Morris Hills Regional School District 5% 7/15/2039 (b)        380,553 
                11,394,970 
       Health Care—4.5%          
       New Jersey State Health Care Facs. Fing. Auth. Revenue:          
 1,000  M  Hackensack Meridian Health 5%  7/1/2035        1,174,520 
 1,000  M  Virtua Health 5.5% 7/1/2038        1,008,920 
                2,183,440 
       Hospital—2.4%          
 1,000  M  New Jersey St. Health Care Facs. Fing. Auth. Rev. 5% 7/1/2039        1,152,610 
       Housing—3.4%          
 1,500  M  New Jersey Housing & Mortgage Fin. Agy. 4% 4/1/2025        1,620,225 
       Industrial Development Revenue/Pollution Control Revenue—3.7%          
 1,665  M  Cape May County Indl. Poll. Cntl. Fin. Auth. 6.8% 3/1/2021        1,798,583 
       Lease—4.8%          
 1,000  M  Hudson County Impt. Auth. Lease Rev. 5.375% 10/1/2024        1,169,620 
 1,000  M  Mercer County Impt. Auth. 5% 9/1/2040        1,145,520 
                2,315,140 
       Other Revenue—3.7%          
       Burlington Cnty Bridge Commission:          
 465  M  4% 8/1/2035        511,509 
 480  M  4% 8/1/2036        525,542 
 500  M  Hudson County Impt. Auth. 5% 8/1/2042        566,325 
 190  M  Monmouth County Impt. Auth. Rev. 5% 1/15/2029        201,052 
                1,804,428 
       Other Tax—1.3%          
 400  M  Puerto Rico Sales Tax Rev. 4.75% 7/1/2053        380,268 
       Virgin Islands Public Finance Auth. Revenue:          
 150  M  4% 10/1/2022        144,000 
 100  M  5% 10/1/2029        97,000 
                621,268 
       Pre-Refunded/Escrowed-to-Maturity—8.6%          
 1,000  M  Elizabeth 5.25% 4/15/2021 (a)        1,075,550 
 1,000  M  New Jersey State COP Equip. Lease Purchase Rev.          
       5.25% 6/15/2019 (a)        1,007,550 
 2,000  M  Newark Hsg. Auth. Rev. (South Ward Police Facility)          
       6.75% 12/1/2019 (a)        2,069,600 
                4,152,700 
       Tobacco—1.1%          
 500  M  Tobacco Settlement Fin Corp NJ 5% 6/1/2046        528,190 
       Toll & Turnpike—13.8%          
       Delaware River Joint Toll Bridge Commission:          
 1,000  M  5% 7/1/2033        1,191,740 
 250  M  5% 7/1/2034        296,968 
       Delaware River Port Authority of Pennsylvania & New Jersey:          
 1,000  M  5% 1/1/2030        1,123,780 
 500  M  5% 1/1/2036        602,460 
 1,000  M  5% 1/1/2040        1,193,280 
       New Jersey State Turnpike Auth. Revenue:          
 1,425  M  5% 1/1/2028        1,639,320 
 500  M  5% 1/1/2048        585,385 
                6,632,933 
       Transportation—3.3%          
 375  M  Guam Port Authority Port Rev. 5% 7/1/2048        421,106 
 1,000  M  Port Authority of New York & New Jersey 5% 10/15/2041        1,154,060 
                1,575,166 
Total Value of Municipal Bonds (cost $46,274,377)   100.9%   48,607,696 
Excess of Liabilities Over Other Assets   (.9)   (432,914)
Net Assets   100.0%  $48,174,782 

 

At March 31, 2019, the cost of municipal investments for federal income tax purposes was $46,274,377. Accumulated net unrealized appreciation on investment was $2,333,319, consisting entirely of gross unrealized appreciation. 

 

 

Portfolio of Investments (Unaudited)

NEW YORK TAX EXEMPT FUND

March 31, 2019

 

Principal
Amount
     Security      Value 
       MUNICIPAL BONDS—98.7%          
       Airport—7.1%          
$1,000  M  New York State Transportion Dev. Corp. 5% 1/1/2033       $1,163,090 
       Niagra Frontier Transportation Authority:          
 715  M  5% 4/1/2033        846,639 
 775  M  5% 4/1/2035        909,509 
 750  M  5% 4/1/2037        873,030 
 350  M  5% 4/1/2039        404,505 
 5,000  M  Port Authority of New York & New Jersey 5% 11/15/2036        5,786,750 
 1,100  M  Westchester County Indl. Dev. Agy. Facs. Rev. 7% 6/1/2046        1,211,815 
                11,195,338 
       Appropriation—5.3%          
 730  M  Hudson Yards Infra. Corp. 5.75% 2/15/2047        782,757 
 1,000  M  New York City Transitional Fin. Auth. Bldg. Aid Rev.          
       5% 7/15/2037        1,193,850 
       New York State Dormitory Authority Revenue:          
 3,000  M  City University 6% 7/1/2020        3,096,360 
 500  M  State University 5.25% 5/15/2021        527,765 
 2,600  M  Syracuse Indl. Dev. Agy. Sch. Fac. Rev. 5% 5/1/2027        2,777,762 
                8,378,494 
       Continuing Care Retirement Communities—.4%          
 572  M  Nassau County Indl. Dev. Agy. Rev. 6.5% 1/1/2034        584,937 
       Education—18.6%          
 700  M  Build New York City Resource Corp. 5.75% 2/1/2049        715,785 
       Dutchess County Local Development Corp. Revenue:          
 1,000  M  5% 7/1/2035        1,181,840 
 1,000  M  5% 7/1/2036        1,177,840 
 1,000  M  5% 7/1/2037        1,172,940 
       Madison County Capital Resource Corp. Revenue:          
 1,000  M  5% 7/1/2035        1,148,610 
 1,000  M  5% 7/1/2039        1,138,660 
 1,000  M  Monroe Indl. Dev. Corp. Rev. 5% 7/1/2037        1,176,180 
       New York State Dormitory Authority Revenue:          
 1,485  M  Colgate University 6% 7/1/2021        1,561,611 
       New York University:          
 2,000  M  5% 7/1/2036        2,343,840 
 1,000  M  5% 7/1/2037        1,116,740 
 2,000  M  5% 7/1/2039        2,325,240 
 500  M  Skidmore College 5% 7/1/2027        534,085 
 1,645  M  State University of New York 5% 7/1/2042        1,909,368 
       State University of New York Student Housing:          
 1,050  M  5% 7/1/2035        1,262,457 
 2,200  M  5% 7/1/2037        2,623,214 
 300  M  Vaughn College 5.5% 12/1/2046        317,850 
 1,000  M  Onondaga County Cultural Resource Rev. 5% 12/1/2030        1,141,020 
       Saratoga County Cap. Res. Corp. Revenue:          
 3,570  M  5% 7/1/2043        4,160,799 
 1,000  M  5% 7/1/2048        1,163,400 
 1,100  M  Schenectady County Cap. Res. Corp. 5% 1/1/2040        1,264,318 
                29,435,797 
       Electric—9.5%          
       Long Island Power Auth. Electric System Revenue:          
 2,000  M  5% 9/1/2039        2,362,660 
 1,000  M  5% 9/1/2041        1,146,140 
 3,210  M  5% 9/1/2042        3,718,496 
 1,200  M  5% 9/1/2044        1,328,496 
       Utility Debt Securitization Authority:          
 4,000  M  5% 12/15/2034        4,737,120 
 1,500  M  5% 12/15/2039        1,790,805 
                15,083,717 
       General Obligation—5.7%          
       Erie County New York:          
 500  M  5% 9/15/2030        615,965 
 825  M  5% 9/15/2031        1,005,155 
       New York City General Obligation:          
 3,000  M  5% 12/1/2034        3,534,810 
 1,895  M  5% 4/1/2035        2,279,723 
 1,000  M  5% 4/1/2039        1,185,240 
 375  M  New York State Dormitory Authority Rev. 5.625% 10/1/2029        382,312 
                9,003,205 
       Health Care—1.5%          
 625  M  Dutchess County Indl. Dev. Agy. Civic Fac. Rev. 5.5% 4/1/2030        658,437 
       New York State Dormitory Authority Revenue (NYSARC):          
 1,140  M  5% 7/1/2025        1,187,173 
 500  M  6% 7/1/2036        505,515 
                2,351,125 
       Housing—1.9%          
 1,000  M  Buffalo & Erie Cnty. Indl. Dev. Corp. Rev. 6% 10/1/2031        1,082,830 
 1,840  M  New York City Hsg. Dev. Corp. Rev. (Multi-Family Hsg. Rev.)          
       5% 11/1/2026        1,961,054 
                3,043,884 
       Lease—3.4%          
       New York City Indl. Dev. Agy. Revenue:          
 1,250  M  Queens Baseball Stadium Pilot 6.125% 1/1/2029        1,254,313 
 1,000  M  Yankee Stadium Pilot 7% 3/1/2049        1,004,710 
 2,500  M  New York State Dormitory Authority Rev. (Court Facs. Lease)          
       5.5% 5/15/2027        3,150,750 
                5,409,773 
       Other Revenue—3.0%          
 3,565  M  New York State Dormitory Authority          
       School Dist. Brd. Fing. 5% 10/1/2042        4,137,076 
 500  M  New York State Transportation Dev. Corp. 5% 1/1/2028        597,035 
                4,734,111 
       Other Tax—19.1%          
       Metropolitan Transportation Authority New York:          
 3,500  M  5% 11/15/2036        4,116,595 
 3,000  M  5% 11/15/2035        3,586,110 
       New York City Transitional Fin Auth Revenue:          
 2,500  M  5% 2/1/2028        2,653,175 
 1,000  M  5% 11/1/2033        1,051,610 
 1,000  M  5.25% 8/1/2037        1,224,340 
 2,000  M  5% 8/1/2042        2,236,860 
 1,000  M  New York State Convention Center Dev. Corp. Rev. 5% 11/15/2040        1,138,340 
       New York State Dormitory Authority Revenue:          
 5,000  M  Personal Income Tax 5% 3/15/2040        5,942,050 
       Sales Tax Revenue:          
 3,250  M  5% 3/15/2038        3,608,313 
 3,000  M  5% 3/15/2036        3,602,190 
 750  M  Puerto Rico Sales Tax Rev. 4.75% 7/1/2053        713,002 
       Virgin Islands Public Finance Authority:          
 250  M  4% 10/1/2022        240,000 
 170  M  5% 10/1/2029        164,900 
                30,277,485 
       Pre-Refunded/Escrowed-to-Maturity—5.8%          
 1,270  M  Hudson Yards Infra. Corp. 5.75% 2/15/2021 (a)        1,370,825 
       New York State Dormitory Authority Revenue:          
 1,000  M  Fordham University 5% 7/1/2021 (a)        1,079,350 
 3,025  M  School District Fing. Auth. 5.625% 10/1/2019 (a)        3,088,102 
 3,500  M  The New School 5.5% 7/1/2020 (a)        3,674,930 
                9,213,207 
       Tobacco—1.2%          
       Suffolk Tobacco Asset Securitization Corporation:          
 150  M  6.625% 6/1/2044        158,092 
 175  M  6% 6/1/2048        175,233 
 750  M  TSASC Inc. NY Tobacco Settlement 5% 6/1/2045        751,748 
 750  M  Westchester Tobacco Asset Securitization 5% 6/1/2045        757,860 
                1,842,933 
       Toll & Turnpike—2.5%          
       New York State Thruway Auth. Revenue:          
 1,000  M  5% 1/1/2031        1,147,040 
 2,450  M  5% 1/1/2032        2,799,983 
                3,947,023 
       Transportation—5.3%          
 1,375  M  Guam Port Authority Port Rev. 5% 7/1/2048        1,544,056 
 1,435  M  New York Thruway 5% 1/1/2035        1,716,619 
 2,500  M  Port Authority of New York & New Jersey5% 10/15/2042        2,914,775 
 2,000  M  Triborough Bridge & Tunnel Auth. 5% 11/15/2041        2,307,560 
                8,483,010 
       Water/Sewer—8.4%          
       Buffalo Muni. Water Fin. Auth. Revenue:          
 500  M  5% 7/1/2029        581,655 
 250  M  5% 7/1/2030        289,495 
 250  M  5% 7/1/2031        288,395 
 300  M  5% 7/1/2032        344,349 
       New York City Muni. Water Fin. Auth. Revenue:          
 2,750  M  6% 6/15/2021        3,021,755 
 2,000  M  5% 6/15/2039        2,289,540 
 2,500  M  5% 6/15/2040        2,951,225 
 2,175  M  New York State Environmental Facs. Corp. 5% 6/15/2043        2,589,490 
       Western Nassau County Water Auth. Revenue:          
 500  M  5% 4/1/2034        571,395 
 300  M  5% 4/1/2035        342,072 
                13,269,371 
Total Market Value of Municipal Bonds (cost $148,599,630)   98.7%   156,253,410 
Other Assets, Less Liabilities   1.3    1,999,058 
Net Assets   100.0%  $158,252,468 

 

At March 31, 2019, the cost of municipal investments for federal income tax purposes was $148,599,630. Accumulated net unrealized appreciation on investment was $7,653,780 consisting of $7,659,701 gross unrealized appreciation and $5,921 gross unrealized depreciation. 

 

 

Portfolio of Investments (Unaudited)

OREGON TAX EXEMPT FUND

March 31, 2019

 

Principal
Amount
     Security      Value 
       MUNICIPAL BONDS—95.2%          
       Airport—4.5%          
       Port of Portland Airport Revenue:          
$1,000  M  5% 7/1/2031       $1,157,400 
 1,100  M  5% 7/1/2042        1,245,068 
                2,402,468 
       Appropriation—1.2%          
 565  M  Home Forward Multi-Family Hsg. Rev. 5% 1/1/2029        629,105 
       Continuing Care Retirement Communities—.8%          
 400  M  Multnomah Cnty: Hosp. Facs. 5.4% 10/1/2044        429,840 
       Education—4.8%          
 1,250  M  Oregon State Univ. Gen. Rev. 5% 4/1/2045        1,420,775 
 1,000  M  University of Oregon 5% 4/1/2045        1,128,320 
                2,549,095 
       Electric—4.1%          
 2,000  M  Eugene Electric Util. Rev. 5% 8/1/2038        2,182,180 
       General Obligation—45.7%          
 1,000  M  Central Oregon Community College District 5% 6/15/2030        1,039,920 
 2,000  M  Clackamas County School District #12, 5% 6/15/2037        2,372,020 
 1,000  M  Clackamas County School District #7J, 5.25% 6/1/2021        1,078,530 
 575  M  Columbia County School District #502, 5% 6/15/2036        682,939 
 1,000  M  Linn County School District #55, 5.5% 6/15/2027        1,270,140 
       Marion County School District #103 Woodburn:          
 300  M  5% 6/1/2030        371,034 
 1,000  M  5% 6/15/2035        1,152,740 
 1,000  M  Marion & Polk Counties School District 5% 6/15/2033        1,221,940 
 1,000  M  Multnomah County School District #3, 5% 6/30/2035        1,066,700 
 1,225  M  Newport Zero Coupon 6/1/2029        941,155 
 2,500  M  Oregon State 5% 5/1/2044        3,007,750 
 1,000  M  Portland Community College 5% 6/15/2030        1,199,630 
 2,000  M  Portland Building Project 5% 6/15/2034        2,444,400 
       Redmond:          
 500  M  5% 6/1/2034        502,850 
 1,410  M  5% 6/1/2038        1,684,428 
 1,000  M  Umatilla County School District #16, 5% 6/15/2033        1,143,850 
 1,000  M  Washington County School District #15 Zero Coupon 6/15/2023        923,890 
 2,000  M  Washington County School District #48J, 5% 6/15/2032        2,278,860 
                24,382,776 
       Health Care—8.5%          
 1,000  M  Medford Hosp. Facs. Auth. Rev. 5.5% 8/15/2028        1,048,910 
 1,650  M  Oregon State Facs. Auth. Rev. 5% 10/1/2045        1,845,228 
 1,500  M  Oregon State Health Sciences Univ. Rev. 5% 7/1/2032        1,638,840 
                4,532,978 
       Other Revenue—4.9%          
 300  M  Oregon State Business Dev. Comm. 6.5% 4/1/2031        290,079 
 2,000  M  Oregon State Dept. Admin. Svcs. Lottery Rev. 5% 4/1/2035        2,298,520 
                2,588,599 
       Other Tax—2.0%          
 500  M  Portland Urban Renewal & Redevelopment 5.25% 6/15/2030        535,325 
 300  M  Puerto Rico Sales Tax Financing 4.75% 7/1/2053        285,201 
       Virgin Islands Public Finance Authority:          
 150  M  4% 10/1/2022        144,000 
 100  M  5% 10/1/2029        97,000 
                1,061,526 
       Pre-Refunded/Escrowed-to-Maturity—11.3%          
       Beaverton School District #48J:          
 750  M  5% 6/1/2019 (a)        754,335 
 1,500  M  5.125% 6/1/2019 (a)        1,508,970 
 1,000  M  Clackamas & Washington Counties School District #3, 5% 6/15/2019 (a)        1,007,150 
 500  M  Ontario Hosp. Facs. Auth. Rev. 5% 12/1/2020 (a)        528,130 
 1,000  M  Oregon State Facs. Auth. Rev. (Reed College) 5% 7/1/2020 (a)        1,043,570 
 200  M  Polk Marion & Benton Counties School District #13J, 5% 6/15/2019 (a)        201,430 
 1,000  M  Salem 5% 6/1/2019 (a)        1,005,700 
                6,049,285 
       Transportation—.8%          
 375  M  Guam Port Authority Port Rev. 5% 7/1/2048        421,106 
       Water/Sewer—6.6%          
 500  M  Hermiston Water & Sewer Sys. 5% 11/1/2034        570,825 
 500  M  Portland Water Sys. Rev. 5% 5/1/2034        532,595 
 2,195  M  Tigard Water Sys. Rev. 5% 8/1/2031        2,412,766 
                3,516,186 
Total Value of Municipal Bonds (cost $48,097,899)        50,745,144 
       SHORT-TERM TAX EXEMPT INVESTMENTS—3.7%          
$2,000  M  Oregon State Facs. Auth. Rev.          
       Adjustable Rate Note 1.46% (d) (cost 2,000,000)        2,000,000 
Total Value of Municipal Investments (cost $50,097,899)   98.9%   52,745,144 
Other Assets, Less Liabilities   1.1   $567,639 
Net Assets   100.0%  $53,312,783 

 

At March 31, 2019, the cost of municipal investments for federal income tax purposes was $50,097,899. Accumulated net unrealized appreciation on investment was $2,647,245, consisting of $2,651,278 gross unrealized appreciation and $4,033 gross unrealized depreciation.

 

 

 

FOOTNOTES

 

(a)Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.

 

(b)A portion or all of the security purchased on a when-issued or delayed delivery basis (see Note 2).

 

(c)Inverse floating rate securities (see Note 3). Interest rates are determined and reset periodically and are the rates in effect at March 31, 2019.

 

(d)Interest rate is determined and reset periodically by the issuer and is the rate in effect at March 31, 2019.

 

Summary of Abbreviations:

  COP Certificate of Participation
  GO General Obligation
  TOB Tender Option Bond
  ISD Independent School District

 

1. Security Valuation—The municipal securities in which the Funds invest are traded primarily in the over-the-counter markets. Such securities are valued daily based upon evaluated prices that are provided by a pricing service approved by the Trust’s Board of Trustees (“the Board”). The pricing service considers security type, rating, market condition and yield data, as well as market quotations and prices provided by market makers and other available information in determining value. If prices are not readily available or are deemed to be unreliable, or do not appear to reflect significant events that have occurred prior to the time as of which the net asset value is calculated, the securities are valued at fair value as determined in good faith pursuant to procedures adopted by the Board.

 

The Funds may retain any insured municipal bond which is in default in the payment of principal or interest until the default has been cured, or the principal and interest outstanding are paid by an insurer or the issuer of any letter of credit or other guarantee supporting such municipal bond. In such case, the Funds may value the defaulted bond daily based upon the value of a comparable bond which is not in default. In selecting a comparable bond, the Funds will consider security type, rating, market condition and yield.

 

In accordance with Accounting Standards Codification 820 “Fair Value Measurements and Disclosures” (“ASC 820”), investments held by the Funds are carried at “fair value”. As defined by ASC 820, fair value is the price that a fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs are used in determining the value of the Funds’ investments.

 

In addition to defining fair value, ASC 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

 

Level 1 – Unadjusted quoted prices in active markets for identical securities that the Fund has the ability to access.

 

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

 

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumption about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

 

Municipal bonds are categorized in Level 2 to the extent that the inputs are observable and timely, otherwise they would be categorized as Level 3. Short-term tax exempt investments are categorized in Level 2. Securities that are fair valued by the Valuation Committee of Foresters Investment Management Company, Inc. (“FIMCO”) may be categorized in either Level 2 or Level 3 of the fair value hierarchy depending on the relative significance of the unobservable valuation inputs.

 

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2. 

 

 

The following is a summary, by category of Level, of inputs used to value the Funds’ investments as of March 31, 2019:

 

   Level 1   Level 2   Level 3 
Investments in Municipal Bonds*               
Tax Exempt Income  $-   $641,865,829   $- 
Tax Exempt Opportunities   -    441,824,525    - 
California   -    55,146,080    - 
New Jersey   -    48,607,696    - 
New York   -    156,253,410    - 
Oregon   -    50,745,144    - 
                
Investments in Short-Term Tax Exempt Investments:               
Tax Exempt Opportunities  $-   $2,500,000   $- 
California        500,000      
Oregon        2,000,000      

 

*The portfolio of Investments provides information on the industry categorization for the portfolio.

 

There were no transfers into or from Level 1 or Level 2 by the Funds for the period ended March 31, 2019. Transfers, if any, between Levels are recognized at the end of the reporting period.

 

2. Other—Security transactions are generally accounted for on the first business day following the date the securities are purchased or sold, except for financial reporting purposes, which is trade date. Investments in securities issued on a when-issued or delayed delivery basis are generally reflected in the assets of the Funds on the first business day following the date the securities are purchased and the Funds segregate assets for these transactions. Cost is determined, and gains and losses are based on the identified cost basis for both financial statement and federal income tax purposes. Interest income is earned from settlement date and recorded on the accrual basis. Bond premiums and discounts on securities are accreted or amortized using the interest method. Interest Income on zero coupon bonds is accrued daily at the effective interest rate. Estimated expenses are accrued daily.

 

3. Derivatives—The Funds may invest in derivatives such as futures contracts, options on futures contracts (“options”), inverse floating rate securities (“inverse floaters”), interest rate swap agreements (“swap agreements”) and Municipal Market Data rate locks (“MMD Rate Locks”) to increase income, hedge against changes in interest rates or enhance potential return.

 

The Funds may enter into interest rate futures contracts on U.S. Treasury obligations and options thereon that are traded on a U.S. exchange. An interest rate futures contract provides for the future sale by one party and the purchase by another party of a specified amount of a particular financial instrument (debt security) at a specified price, date, time and place. Such investments may be used for the purpose of hedging against changes in the value of a Fund’s portfolio securities due to anticipated changes in interest rates and market conditions. A public market exists for interest rate futures contracts covering a number of debt securities, including long-term U.S. Treasury Bonds, 10-year U.S. Treasury Notes and three-month U.S. Treasury Bills. No price is paid upon entering into futures contracts. Instead, upon entering into a futures contract, the Funds are required to deposit with their custodian in a segregated account in the name of the futures broker through which the transaction is effected an amount of cash or U.S. Government securities generally equal to 3%-5% or less of the contract value. This amount is known as “initial margin.”

 

An option on an interest rate futures contract generally gives the purchaser the right, in return for the premium paid, to assume a position in a futures contract at a specified exercise price at any time prior to the expiration date of the option. The Funds may purchase put and call options on interest rate futures contracts on U.S. Treasury obligations which are traded on a U.S. exchange as a hedge against changes in interest rates, and may enter into closing transactions with respect to such options to terminate existing positions. There is no guarantee such closing transactions can be effected. When writing a call or put option on a futures contract, margin also must be deposited in accordance with applicable exchange rules. Initial margin on futures contracts is in the nature of a performance bond or good-faith deposit that is returned to a Fund upon termination of the transaction, assuming all obligations have been satisfied. Under certain circumstances, such as periods of high volatility, a Fund may be required by an exchange to increase the level of its initial margin payment. Subsequent payments, called “variation margin,” to and from the broker, are made on a daily basis as the value of the futures position varies, a process known as “marking to market.” Variation margin does not involve borrowing to finance the futures transactions, but rather represents a daily settlement of a Fund’s obligation to or from a clearing organization. A Fund is also obligated to make initial and variation margin payments when it writes options on futures contracts. 

 

 

To the extent that a Fund participates in the options or futures markets, it will incur investment risks and transaction costs to which it would not be subject absent the use of these strategies. The use of these strategies involves certain special risks, including: (1) dependence on the Funds’ adviser, FIMCO, to predict correctly movements in the direction of interest rates and securities prices; (2) imperfect correlation between the price of futures contracts and options thereon and movements in the prices of the securities or currencies being hedged; (3) the fact that skills needed to use these strategies are different from those needed to select portfolio securities; (4) the leverage (if any) that is created by investing in the option or futures contract; and (5) the possible absence of a liquid secondary market for any particular instrument at any time. If FIMCO’s prediction of movements in the direction of the securities and interest rate markets is inaccurate, the adverse consequences to that Fund may leave it in a worse position than if such strategies were not used. At March 31, 2019, the Funds held no investments in futures contracts, though during the period ending March 31, 2019, Oregon held investments in futures contracts.

 

Inverse floaters are securities on which the rate of interest varies inversely with interest rates on other securities or the value of an index. For example, an inverse floater may pay interest at a rate that increases as a specified interest rate index decreases but decreases as that index increases. The secondary market for inverse floaters may be limited and they may be illiquid. The market values of such securities generally are more volatile than the market values of ordinary fixed rate obligations. The interest rates on inverse floaters may be significantly reduced, even to zero, if interest rates rise.

 

The Funds may enter into transactions in which they transfer fixed rate bonds to trusts in exchange for cash and residual interests in the trusts' assets and cash flows, which are in the form of inverse floating rate securities. The inverse floating rate securities issued in connection with the trusts give the Funds the right (1) to cause the holders of the floating rate notes to be tendered at par and (2) to transfer the fixed rate bond from the trusts to the Funds, thereby collapsing the trusts. The Funds account for these transactions as secured borrowings, with the fixed rate bonds remaining in the Funds' investment assets, and the related floating rate notes reflected as Fund liabilities under the caption "floating rate notes issued” in the Statements of Assets and Liabilities. The notes issued by the trusts have interest rates that generally reset weekly, and the floating rate note holders have the option to tender their notes to the trusts for redemption at par at each reset date. Expenses of the trusts, including interest paid to holders of the floating rate notes, are included in the Statements of Operations. For the period ended March 31, 2019, the Funds had no investments in inverse floaters that were acquired through exchanges with trusts.

 

Interest rate swap transactions are agreements between two parties to exchange interest payments on a designated amount of two different securities for a designated period of time. For example, two parties may agree to exchange interest payments on variable and fixed rate instruments. The Funds may enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its bond portfolio. Swap agreements are marked-to-market daily based on valuations provided by a pricing service and changes in value, if any, are recorded as unrealized appreciation or depreciation in the Statements of Operations. Gains or losses are realized upon early termination of the swap agreements. Risks may exceed the amounts shown in the Statements of Assets and Liabilities. These risks include failure of the counterparty to perform under the contract’s terms and the possible lack of liquidity with respect to the swap agreements. For the period ended March 31, 2019, the Funds had no investments in swap agreements.

 

An MMD Rate Lock permits a Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular investment or a portion of its portfolio as a duration management technique or to protect against any increase in the price of securities to be purchased at a later date. MMD Rate Locks may be used for hedging purposes. There is no payment made or received at inception of the MMD Rate Lock. The net amount of the excess, if any, of a Fund’s obligations over its entitlements with respect to an MMD Rate Lock will be accrued on a daily basis and an amount of liquid assets that have an aggregate net asset value at least equal to the accrued excess will be maintained in a separate account by the Fund. In entering into MMD Rate Locks, there is a risk that municipal yields will move in the direction opposite the direction anticipated by a Fund. The use of MMD Rate Locks is a highly specialized activity that involves investment techniques and risks different than those associated with ordinary portfolio securities transactions. If the other party to an MMD Rate Lock defaults, a Fund’s risk of loss consists of the amount of payments that the Fund contractually is entitled to receive. For the period ended March 31, 2019, the Funds had no investments in MMD Rate Locks.