Fund Description

Incepted in March 1986, the fund is managed by Aquila Management Corporation. Banc One Investment Advisors Corporation is the sub-advisor of the fund. The objective of this fund is to provide as high a level of current income exempt from Arizona personal and regular Federal income taxes as is consistent with preservation of capital. The fund invests primarily in tax-free municipal obligations that finance schools, highways, airports, hospitals and water and sewer facilities in Arizona. The fund declares dividends daily and pays them every month. Net capital gains of the fund, if any, realized through October 31st of each year and not previously paid out will be paid out after that date. The fund also pays supplemental distributions after the end of its fiscal year. If net capital losses are realized in any year, they are charged against capital and not against net investment income which is distributed regardless of gains or losses.