UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-04025 | |||||
AMERICAN CENTURY MUNICIPAL TRUST | ||||||
(Exact name of registrant as specified in charter) | ||||||
4500 MAIN STREET, KANSAS CITY, MISSOURI | 64111 | |||||
(Address of principal executive offices) | (Zip Code) | |||||
CHARLES A. ETHERINGTON 4500 MAIN STREET, KANSAS CITY, MISSOURI 64111 | ||||||
(Name and address of agent for service) | ||||||
Registrant’s telephone number, including area code: | 816-531-5575 | |||||
Date of fiscal year end: | 05-31 | |||||
Date of reporting period: | 11-30-2015 |
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT | NOVEMBER 30, 2015 |
High-Yield Municipal Fund
Table of Contents |
President’s Letter | 2 | |
Performance | 3 | |
Fund Characteristics | ||
Shareholder Fee Example | ||
Schedule of Investments | ||
Statement of Assets and Liabilities | ||
Statement of Operations | ||
Statement of Changes in Net Assets | ||
Notes to Financial Statements | ||
Financial Highlights | ||
Approval of Management Agreement | ||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
Dear Investor: Thank you for reviewing this semiannual report for the six months ended November 30, 2015. It provides a macroeconomic and financial market overview (below), followed by fund performance, a schedule of fund investments, and other financial information. For additional commentary and updated information on fund performance, key factors that affected asset returns, and other insights regarding the investment markets, we encourage you to visit our website, americancentury.com. | |
Jonathan Thomas |
Municipal Bonds (Munis) Outperformed During a Volatile Period
Widespread concerns about economic growth (especially in China) and central bank monetary policy decisions helped spark sharp financial market volatility during the reporting period. China’s challenges and events included a stock market crash, a sudden currency devaluation, and massive monetary policy intervention by its central bank. These events rippled through the global markets from July through September, contributing to the decision by the U.S. Federal Reserve (the Fed) in September to delay raising its short-term interest rate target for fear of further roiling the markets. However, the Fed indicated in October that it could still raise rates by year end. This environment made it difficult to produce positive investment returns—the S&P 500 Index and the Barclays U.S. Aggregate Bond Index returned -0.21% and -0.12%, respectively, for the six months.
Meanwhile, munis outperformed. Despite default threats in Puerto Rico and financial concerns facing the city of Chicago and the states of Illinois and New Jersey, the broader muni market was viewed as a relative bastion of stability because of its comparatively high overall credit quality. Investors also focused on munis because this sector has historically performed relatively well in periods of rising interest rates, particularly if the rate increases reflect stronger economic conditions. The Barclays Municipal Bond Index advanced 2.37% for the six months.
After the reporting period, the Fed finally began the process of gradually increasing its overnight interest rate target. But we don’t expect a big increase in intermediate- to longer-maturity bond yields in the near term because of deflationary threats and other headwinds still facing the global economy. We believe the Fed’s moves (and conjecture about these moves) will be accompanied by further market volatility. This could present both challenges and opportunities for active investment managers. In this environment, we continue to believe in a disciplined, diversified, long-term investment approach, using professionally managed stock and bond portfolios to meet financial goals. We appreciate your continued trust in us.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Performance |
Total Returns as of November 30, 2015 | |||||||
Average Annual Returns | |||||||
Ticker Symbol | 6 months(1) | 1 year | 5 years | 10 years | Since Inception | Inception Date | |
Investor Class | ABHYX | 2.52% | 4.74% | 6.34% | 3.90% | 4.82%(2) | 3/31/98 |
Barclays Municipal Bond Index | — | 2.37% | 3.10% | 4.79% | 4.73% | 5.03% | — |
Institutional Class | AYMIX | 2.62% | 4.95% | 6.55% | — | 6.39% | 3/1/10 |
A Class | AYMAX | 1/31/03 | |||||
No sales charge* | 2.40% | 4.48% | 6.07% | 3.64% | 4.22% | ||
With sales charge* | -2.20% | -0.21% | 5.10% | 3.17% | 3.85% | ||
C Class | AYMCX | 7/24/02 | |||||
No sales charge* | 2.12% | 3.81% | 5.28% | 2.87% | 3.53% | ||
With sales charge* | 1.12% | 3.81% | 5.28% | 2.87% | 3.53% |
* Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 4.50% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
(1) | Total returns for periods less than one year are not annualized. |
(2) | Returns would have been lower if a portion of the management fee had not been waived. |
Total Annual Fund Operating Expenses | |||
Investor Class | Institutional Class | A Class | C Class |
0.60% | 0.40% | 0.85% | 1.60% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
3
Fund Characteristics |
NOVEMBER 30, 2015 | |
Portfolio at a Glance | |
Weighted Average Maturity | 18.8 years |
Average Duration (Modified) | 5.4 years |
Top Five States and Territories | % of net assets |
California | 12.2% |
New York | 11.1% |
Florida | 7.0% |
Illinois | 6.7% |
Texas | 5.0% |
Top Five Sectors | % of fund investments |
Hospital | 14% |
Special Tax | 10% |
Industrial Development Revenue/Pollution Control Revenue | 9% |
Tollroads | 8% |
Life Care | 7% |
Types of Investments in Portfolio | % of net assets |
Municipal Securities | 95.6% |
Temporary Cash Investments | 5.1% |
Other Assets and Liabilities | (0.7)% |
4
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from June 1, 2015 to November 30, 2015.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
5
Beginning Account Value 6/1/15 | Ending Account Value 11/30/15 | Expenses Paid During Period(1)6/1/15 - 11/30/15 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,025.20 | $3.04 | 0.60% |
Institutional Class | $1,000 | $1,026.20 | $2.03 | 0.40% |
A Class | $1,000 | $1,024.00 | $4.30 | 0.85% |
C Class | $1,000 | $1,021.20 | $8.08 | 1.60% |
Hypothetical | ||||
Investor Class | $1,000 | $1,022.00 | $3.03 | 0.60% |
Institutional Class | $1,000 | $1,023.00 | $2.02 | 0.40% |
A Class | $1,000 | $1,020.75 | $4.29 | 0.85% |
C Class | $1,000 | $1,017.00 | $8.07 | 1.60% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, to reflect the one-half year period. |
6
Schedule of Investments |
NOVEMBER 30, 2015 (UNAUDITED)
Principal Amount | Value | |||||
MUNICIPAL SECURITIES — 95.6% | ||||||
Alabama — 1.0% | ||||||
Industrial Development Board of the City of Mobile Alabama Rev., (Alabama Power Company), VRDN, 1.625%, 10/2/18 | $ | 2,000,000 | $ | 2,012,140 | ||
Jefferson County Sewer Rev., Series 2013 D, 6.50%, 10/1/53 | 2,000,000 | 2,323,340 | ||||
4,335,480 | ||||||
Alaska — 0.2% | ||||||
Northern Tobacco Securitization Corp. Settlement Rev., Series 2006 A, 5.00%, 6/1/46 | 1,000,000 | 841,520 | ||||
Arizona — 4.3% | ||||||
Arizona Health Facilities Authority Rev., Series 2014 A, (Banner Health), 5.00%, 1/1/44 | 1,585,000 | 1,761,743 | ||||
Arizona School Facilities Board COP, Series 2015 A, 5.00%, 9/1/23 | 2,500,000 | 3,013,450 | ||||
City of Mesa Excise Tax Rev., 5.00%, 7/1/27 | 250,000 | 265,385 | ||||
Florence Town Inc. Industrial Development Authority Education Rev., (Legacy Traditional Charter School), 6.00%, 7/1/43 | 1,000,000 | 1,078,800 | ||||
Mohave County Industrial Development Authority Correctional Facilities Contract Rev., (Mohave Prison, LLC Expansion), 8.00%, 5/1/25 | 500,000 | 553,280 | ||||
Phoenix Industrial Development Authority Education Rev., (Basis School, Inc.), 5.00%, 7/1/45(1) | 1,500,000 | 1,505,610 | ||||
Phoenix Industrial Development Authority Education Rev., Series 2014 A, (Great Hearts Academies Project), 5.00%, 7/1/44(1) | 1,000,000 | 1,014,600 | ||||
Phoenix Industrial Development Authority Education Rev., Series 2014 A, (Legacy Traditional Schools Project), 6.75%, 7/1/44(1) | 2,000,000 | 2,245,500 | ||||
Phoenix Industrial Development Authority Rev., Series 2014, (Guam Facilities Foundation, Inc. Project), 5.375%, 2/1/41 | 1,000,000 | 1,004,510 | ||||
Pima County Sewer System Rev., Series 2011 B, 5.00%, 7/1/26 | 1,000,000 | 1,157,240 | ||||
Salt River Project Agricultural Improvement & Power District Rev., Series 2015 A, (Electric System Disribution), 5.00%, 12/1/45 | 2,000,000 | 2,305,380 | ||||
Salt Verde Financial Corp. Senior Gas Rev., Series 2007, 5.00%, 12/1/37 | 1,000,000 | 1,120,310 | ||||
Sundance Community Facilities District No. 2 Special Assessment Rev., 7.125%, 7/1/27(1) | 512,000 | 512,876 | ||||
Sundance Community Facilities District No. 3 Special Assessment Rev., 6.50%, 7/1/29 | 298,000 | 298,316 | ||||
17,837,000 | ||||||
California — 12.2% | ||||||
Anaheim Public Financing Authority Rev., Series 2014 A, (Anaheim Convention Center Expansion Project), 5.00%, 5/1/46 | 2,200,000 | 2,476,078 | ||||
California County Tobacco Securitization Agency Rev., Series 2006 A, 0.00%, 6/1/50(2) | 8,000,000 | 568,000 | ||||
California GO, 5.00%, 4/1/37 | 1,000,000 | 1,146,370 | ||||
California Health Facilities Financing Authority Rev., Series 2009 A, (Children's Hospital of Orange County), 6.50%, 11/1/38 | 2,000,000 | 2,363,320 | ||||
California Health Facilities Financing Authority Rev., Series 2013 A, (Sutter Health), 5.00%, 8/15/52 | 860,000 | 946,447 | ||||
California Municipal Finance Authority Rev., Series 2011 B, (Azusa Pacific University), 8.00%, 4/1/21, Prerefunded at 100% of Par(3) | 800,000 | 1,068,016 | ||||
California Public Works Board Lease Rev., Series 2013 A, (Judicial Council Projects), 5.00%, 3/1/30 | 1,500,000 | 1,736,505 |
7
Principal Amount | Value | |||||
California Public Works Board Lease Rev., Series 2013 I, (Various Capital Projects), 5.00%, 11/1/38 | $ | 1,500,000 | $ | 1,716,855 | ||
California Public Works Board Lease Rev., Series 2014 A, (Various Correctional Facilities), 5.00%, 9/1/39 | 3,000,000 | 3,433,890 | ||||
California Statewide Communities Development Authority Rev., (Lancer Educational Student Housing), Series 2010 A, 7.50%, 6/1/42 | 1,975,000 | 2,174,435 | ||||
California Statewide Communities Development Authority Rev., Series 2012 A, (Kaiser Permanente), 5.00%, 4/1/42 | 2,000,000 | 2,232,840 | ||||
Clovis Unified School District GO, Capital Appreciation, Series 2004 A, (Election of 2004), 0.00%, 8/1/26 (NATL-RE)(2) | 2,500,000 | 1,876,750 | ||||
Foothill / Eastern Transportation Corridor Agency Toll Road Rev., Capital Appreciation, Series 2013 A, 0.00%, 1/15/24(4) | 500,000 | 388,620 | ||||
Foothill / Eastern Transportation Corridor Agency Toll Road Rev., Series 2013 A, 6.00%, 1/15/49 | 2,250,000 | 2,644,695 | ||||
Foothill / Eastern Transportation Corridor Agency Toll Road Rev., Series 2013 B-3, VRDN, 5.50%, 1/15/23 | 500,000 | 577,015 | ||||
Foothill / Eastern Transportation Corridor Agency Toll Road Rev., Series 2013 C, 6.50%, 1/15/43 | 500,000 | 592,240 | ||||
Foothill / Eastern Transportation Corridor Agency Toll Road Rev., Capital Appreciation, Series 2015 A, 0.00%, 1/15/33(2) | 750,000 | 334,838 | ||||
Golden State Tobacco Securitization Corp. Settlement Rev., Series 2007 A-1, 5.00%, 6/1/33 | 500,000 | 456,130 | ||||
Golden State Tobacco Securitization Corp. Settlement Rev., Series 2007 A-1, 5.125%, 6/1/47 | 2,000,000 | 1,703,880 | ||||
Golden State Tobacco Securitization Corp. Settlement Rev., Series 2007 A-1, 5.75%, 6/1/47 | 2,500,000 | 2,316,200 | ||||
Independent Cities Finance Authority Mobilehome Park Rev., Series 2010 A, (Lamplighter Salinas), 6.15%, 7/15/40 | 2,000,000 | 2,226,220 | ||||
Long Beach Unified School District GO, Capital Appreciation, Series 2008 G, 0.00%, 8/1/25 (AGC)(2) | 1,595,000 | 1,213,476 | ||||
Morongo Band of Mission Indians Rev., Series 2008 B, (Enterprise Casino Services), 6.50%, 3/1/28(1) | 1,000,000 | 1,102,430 | ||||
Oakland Redevelopment Agency Rev., 5.00%, 9/1/16, Prerefunded at 100% of Par (Ambac)(3) | 3,350,000 | 3,468,054 | ||||
Oakland Unified School District Alameda County GO, Series 2013, (Election of 2012), 6.625%, 8/1/38 | 385,000 | 471,929 | ||||
Palm Springs Airport Passenger Facility Charge Rev., (Palm Springs International Airport), 6.40%, 7/1/23 | 250,000 | 252,890 | ||||
Palm Springs Airport Passenger Facility Charge Rev., (Palm Springs International Airport), 6.50%, 7/1/27 | 200,000 | 202,328 | ||||
Poway Unified School District GO, (Election of 2008), 0.00%, 8/1/32(2) | 2,000,000 | 1,084,580 | ||||
River Islands Public Financing Authority Community Facilities District No. 2003-1 Special Tax Rev., Series 2015 A-1, (Public Improvements), 5.50%, 9/1/45 | 1,500,000 | 1,584,390 | ||||
River Rock Entertainment Authority (The) Rev., Series 2011 B, 8.00%, 11/1/18(5)(6) | 2,931,000 | 294,976 | ||||
San Diego Public Facilities Financing Authority Lease Rev., Series 2015 A, (Capital Improvement Projects), 5.00%, 10/15/44 | 500,000 | 561,700 | ||||
San Francisco City and County Airports Commission Rev., Series 2013 A, (San Francisco International Airport), 5.00%, 5/1/23 | 750,000 | 896,077 | ||||
San Francisco City and County Redevelopment Financing Authority Tax Allocation Rev., Series 2009 D, (Mission Bay South Redevelopment), 6.625%, 8/1/39 | 250,000 | 285,108 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., Capital Appreciation, Series 1997 A, 0.00%, 1/15/36 (NATL-RE)(2) | 1,000,000 | 393,770 |
8
Principal Amount | Value | |||||
San Joaquin Hills Transportation Corridor Agency Rev., Series 2014 B, (Junior Lien), 5.25%, 1/15/44 | $ | 3,000,000 | $ | 3,241,320 | ||
Successor Agency to the Redevelopment Agency of the City & County of San Francisco Communities Facilities District No. 6 Special Tax Rev., Capital Appreciation, Series 2013 C, (Mission Bay South Public Improvements), 0.00%, 8/1/43 (BAM)(2) | 3,500,000 | 743,995 | ||||
Sunnyvale Community Facilities District No. 1 Special Tax Rev., 7.75%, 8/1/32 | 1,500,000 | 1,502,955 | ||||
50,279,322 | ||||||
Colorado — 4.5% | ||||||
Central Platte Valley Metropolitan District GO, 5.00%, 12/1/43 | 1,000,000 | 1,033,700 | ||||
Colorado Department of Transportation Rev., (Transportation Revenue Anticipation Notes), 5.00%, 12/15/16 | 2,000,000 | 2,095,600 | ||||
Colorado Health Facilities Authority Rev., Series 2010 A, (Total Longterm Care), 6.00%, 11/15/30 | 500,000 | 565,055 | ||||
Denver City and County Airport Rev., Series 2007 A, (United Air Lines Project), 5.75%, 10/1/32 | 1,500,000 | 1,558,995 | ||||
Denver Health & Hospital Authority Rev., Series 2014 A, 5.00%, 12/1/39 | 800,000 | 864,280 | ||||
Denver Health & Hospital Authority Rev., Series 2014 A, 5.25%, 12/1/45 | 250,000 | 273,640 | ||||
Denver Urban Renewal Authority Tax Increment Rev., Series 2013 A-1, 5.00%, 12/1/25 | 1,500,000 | 1,730,940 | ||||
E-470 Public Highway Authority Rev., Series 2014 A, VRDN, 1.19%, 12/3/15 | 2,200,000 | 2,193,070 | ||||
Foothills Metropolitan District Special Assessment Rev., 6.00%, 12/1/38 | 1,000,000 | 1,065,750 | ||||
One Horse Business Improvement District Rev., (Sales Tax Sharing), 6.00%, 6/1/24 | 1,400,000 | 1,402,520 | ||||
Plaza Metropolitan District No. 1 Tax Allocation Rev., 5.00%, 12/1/22(1) | 500,000 | 541,025 | ||||
Regional Transportation District COP, 5.00%, 6/1/20 | 1,750,000 | 2,023,927 | ||||
Regional Transportation District Private Activity Rev., (Denver Transit Partners), 6.00%, 1/15/41 | 1,000,000 | 1,124,570 | ||||
Todd Creek Farms Metropolitan District No. 1 Rev., 5.60%, 12/1/14(7) | 1,800,000 | 1,151,946 | ||||
Todd Creek Farms Metropolitan District No. 1 Rev., 6.125%, 12/1/19(6) | 1,500,000 | 959,955 | ||||
18,584,973 | ||||||
Connecticut — 0.6% | ||||||
Connecticut State Health & Educational Facility Authority Rev., Series 2015 A, (Yale University), VRDN, 1.375%, 7/11/18 | 2,500,000 | 2,528,975 | ||||
Delaware — 0.4% | ||||||
Delaware State Economic Development Authority Gas Facilities Rev., (Delmarva Power & Light Co.), 5.40%, 2/1/31 | 1,500,000 | 1,668,555 | ||||
Florida — 7.0% | ||||||
Alachua County Health Facilities Authority Rev., (Ridge Retirement Village, Inc.), 6.375%, 11/15/49 | 1,500,000 | 1,651,455 | ||||
Brevard County Health Facilities Authority Rev., (Health First, Inc.), 5.00%, 4/1/39 | 2,445,000 | 2,672,018 | ||||
Brevard County Industrial Development Rev., (TUFF Florida Institute of Technology), 6.75%, 11/1/39 | 1,000,000 | 1,090,970 | ||||
Broward County Airport System Rev., Series 2013 C, 5.25%, 10/1/38 | 500,000 | 567,925 | ||||
Broward County Airport System Rev., Series 2015 A, 5.00%, 10/1/28 | 2,000,000 | 2,343,080 |
9
Principal Amount | Value | |||||
Celebration Pointe Community Development District Special Assessment Rev., 5.125%, 5/1/45 | $ | 750,000 | $ | 758,078 | ||
Escambia County Rev., Series 1997, (Gulf Power Co.),VRDN, 2.10%, 4/11/19 | 500,000 | 507,115 | ||||
Florida Development Finance Corp. Rev., Series 2015 A, (Renaissance Charter School, Inc.), 6.125%, 6/15/46(1) | 1,000,000 | 1,002,780 | ||||
Greater Orlando Aviation Authority Rev., (JetBlue Airways Corp.), 5.00%, 11/15/36 | 1,000,000 | 1,028,620 | ||||
Hillsborough County Industrial Development Authority Rev., Series 2013 A, (Tampa General Hospital), 5.00%, 10/1/34 | 1,250,000 | 1,376,125 | ||||
Hillsborough County School Board COP, Series 2015 A, (Master Lease Program), 5.00%, 7/1/22 | 1,250,000 | 1,482,037 | ||||
Lakeland Hospital System Rev., (Lakeland Regional Health Systems), 5.00%, 11/15/45 | 1,500,000 | 1,646,910 | ||||
Martin County Health Facilities Authority Rev., (Martin Memorial Medical Center), 5.50%, 11/15/42 | 1,500,000 | 1,626,060 | ||||
Miami Beach Redevelopment Authority Rev., Series 2015 A, 5.00%, 2/1/27(8) | 1,000,000 | 1,153,720 | ||||
Miami-Dade County Educational Facilities Authority Rev., Series 2015 A, (University of Miami), 5.00%, 4/1/30 | 1,250,000 | 1,425,962 | ||||
Miami-Dade County Expressway Authority Rev., Series 2014 B, 5.00%, 7/1/31 | 1,000,000 | 1,147,930 | ||||
Miami-Dade County Industrial Development Authority Rev., (Pinecrest Academy, Inc.), 5.25%, 9/15/44 | 950,000 | 984,685 | ||||
Miami-Dade County Rev., Series 2012 B, 5.00%, 10/1/37 | 1,500,000 | 1,679,205 | ||||
Mid-Bay Bridge Authority Springing Lien Rev., Series 2011 A, 7.25%, 10/1/21, Prerefunded at 100% of Par(3) | 515,000 | 675,572 | ||||
Orange County Health Facilities Authority Rev., (Presbyterian Retirement Communities Project), 5.00%, 8/1/34 | 1,450,000 | 1,583,574 | ||||
South Lake County Hospital District Rev., Series 2010 A, (South Lake Hospital), 6.25%, 4/1/39 | 1,000,000 | 1,130,580 | ||||
Village Community Development District No. 10 Special Assessment Rev., 6.00%, 5/1/44 | 480,000 | 551,438 | ||||
Village Community Development District No. 8 Special Assessment Rev., 6.125%, 5/1/39 | 805,000 | 929,059 | ||||
29,014,898 | ||||||
Georgia — 2.7% | ||||||
Atlanta Airport Rev., Series 2011 B, 5.00%, 1/1/29 | 1,000,000 | 1,096,140 | ||||
Atlanta Water & Wastewater Rev., Series 2009 A, 6.25%, 11/1/19, Prerefunded at 100% of Par(3) | 3,000,000 | 3,591,240 | ||||
Atlanta Water & Wastewater Rev., Series 2015, 5.00%, 11/1/40 | 2,500,000 | 2,859,025 | ||||
DeKalb County Water and Sewer Rev., Series 2011 A, 5.25%, 10/1/36 | 1,000,000 | 1,178,300 | ||||
Marietta Development Authority Rev., (Life University, Inc.), 7.00%, 6/15/39 | 1,000,000 | 1,043,680 | ||||
Monroe County Development Authority Pollution Control Rev., (Georgia Power Co.), VRDN, 2.35%, 12/11/20 | 1,500,000 | 1,511,805 | ||||
11,280,190 | ||||||
Guam — 0.3% | ||||||
Guam Government Department of Education COP, Series 2010 A, (John F. Kennedy High School), 6.625%, 12/1/30 | 1,000,000 | 1,090,280 | ||||
Hawaii — 0.5% | ||||||
Hawaii State Department of Budget & Finance Rev., Series 2009 A, (15 Craigside), 9.00%, 11/15/44 | 1,500,000 | 1,866,090 | ||||
Idaho — 0.7% | ||||||
Idaho Health Facilities Authority Rev., (Partners In Healthcare, Inc.), 5.50%, 11/1/45 | 3,000,000 | 2,926,770 |
10
Principal Amount | Value | |||||
Illinois — 6.7% | ||||||
Bedford Park Tax Allocation Rev., 5.125%, 12/30/18 | $ | 1,325,000 | $ | 1,330,300 | ||
Chicago GO, Series 2015 A, 5.50%, 1/1/39 | 2,000,000 | 2,097,520 | ||||
Chicago Midway Airport Rev., Series 2013 B, 5.00%, 1/1/26 | 2,200,000 | 2,524,302 | ||||
Chicago O'Hare International Airport Rev., Series 2005 A, 5.00%, 1/1/29 (NATL-RE) | 1,115,000 | 1,119,337 | ||||
Chicago O'Hare International Airport Rev., Series 2015 A, 5.00%, 1/1/27 | 3,000,000 | 3,430,410 | ||||
Chicago Wastewater Transmission Rev., Series 2008 C, (Second Lien), 5.00%, 1/1/34 | 245,000 | 266,031 | ||||
Chicago Wastewater Transmission Rev., Series 2008 C, (Second Lien), 5.00%, 1/1/35 | 245,000 | 265,249 | ||||
Chicago Wastewater Transmission Rev., Series 2008 C, (Second Lien), 5.00%, 1/1/39 | 1,240,000 | 1,336,584 | ||||
Chicago Wastewater Transmission Rev., Series 2014, (Second Lien), 5.00%, 1/1/44 | 500,000 | 534,235 | ||||
Chicago Waterworks Rev., (Second Lien), 5.00%, 11/1/39 | 450,000 | 481,028 | ||||
Illinois Educational Facilities Authority Rev., Series 2001 B-1, (University of Chicago), VRDN, 1.10%, 2/15/18 | 1,125,000 | 1,125,236 | ||||
Illinois Finance Authority Rev., Series 2015 A, (OSF Healthcare System), 5.00%, 11/15/45 | 1,300,000 | 1,430,013 | ||||
Illinois Finance Authority Rev., Series 2013 A, (Benedictine University Project), 6.25%, 10/1/33 | 1,000,000 | 1,137,040 | ||||
Illinois Finance Authority Rev., Series 2008 A, (Prairie Power, Inc.), VRDN, 1.30%, 5/8/17 (GA: National Rural Utilities Cooperative Finance Corp.) | 1,240,000 | 1,240,806 | ||||
Illinois Finance Authority Rev., Series 2009 A, (Rush University Medical Center Obligation Group), 7.25%, 11/1/18, Prerefunded at 100% of Par(3) | 1,500,000 | 1,768,185 | ||||
Illinois Finance Authority Rev., Series 2013, (Northwestern Memorial Healthcare), 5.00%, 8/15/43 | 1,000,000 | 1,094,570 | ||||
Illinois Finance Authority Rev., Series 2015, (Plymouth Place, Inc.), 5.25%, 5/15/50 | 2,000,000 | 2,017,760 | ||||
Illinois Finance Authority Rev., Series 2015 A, (Rush University Medical Center Obligation Group), 5.00%, 11/15/38 | 500,000 | 562,300 | ||||
Illinois GO, 5.00%, 2/1/39 | 1,900,000 | 1,965,550 | ||||
Illinois GO, 5.50%, 7/1/38 | 1,000,000 | 1,063,630 | ||||
Metropolitan Pier & Exposition Authority Rev., Capital Appreciation, Series 2012 B, (McCormick Place Project), 0.00%, 12/15/41(2) | 1,000,000 | 254,470 | ||||
University of Illinois Rev., Series 2011 A, (Auxiliary Facilities System), 5.25%, 4/1/41 | 625,000 | 688,975 | ||||
27,733,531 | ||||||
Indiana — 0.1% | ||||||
Richmond Hospital Authority Rev., Series 2015 A, 5.00%, 1/1/39 | 500,000 | 556,485 | ||||
Iowa — 0.2% | ||||||
Iowa Tobacco Settlement Authority Rev., Series 2005 C, 5.625%, 6/1/46 | 1,000,000 | 962,530 | ||||
Louisiana — 1.0% | ||||||
Louisiana Offshore Terminal Authority Deepwater Port Rev., Series 1997 A, (LOOP LLC Project), VRDN, 0.01%, 12/1/15 (LOC: JPMorgan Chase Bank N.A.) | 600,000 | 600,000 | ||||
Louisiana State Citizens Property Insurance Corp. Rev., 5.00%, 6/1/20 | 1,500,000 | 1,712,475 | ||||
New Orleans Aviation Board Rev., Series 2009 A, (Consolidated Rental Car), 6.50%, 1/1/40 | 1,500,000 | 1,691,880 | ||||
4,004,355 |
11
Principal Amount | Value | |||||
Maryland — 2.1% | ||||||
Anne Arundel County Special Obligation Tax Allocation Rev., (National Business Park), 6.10%, 7/1/40 | $ | 1,000,000 | $ | 1,058,720 | ||
Baltimore Special Obligation Tax Allocation Rev., Series 2008 A, (Resh Park), 7.00%, 9/1/38 | 2,900,000 | 3,099,433 | ||||
Maryland Economic Development Corp. Rev., Series 2010 A, (Transportation Facilities), 5.75%, 6/1/35 | 1,000,000 | 1,092,850 | ||||
Maryland Health & Higher Educational Facilities Authority Rev., (Lifebridge Health Obligation Group), 5.00%, 7/1/47 | 2,000,000 | 2,209,020 | ||||
Maryland Health & Higher Educational Facilities Authority Rev., (Medstar Health, Inc.), 5.00%, 8/15/42 | 1,000,000 | 1,108,430 | ||||
8,568,453 | ||||||
Massachusetts — 0.5% | ||||||
Massachusetts Development Finance Agency Rev., Series 2012 C, (Covanta Energy Project), 5.25%, 11/1/42(1) | 1,000,000 | 1,003,570 | ||||
Massachusetts Development Finance Agency Rev., Series 2015 F, (Lahey Clinic), 5.00%, 8/15/45 | 910,000 | 1,019,500 | ||||
2,023,070 | ||||||
Michigan — 2.5% | ||||||
Detroit City School District GO, Series 2012 A, (School Building & Site Improvement), 5.00%, 5/1/25 (Q-SBLF) | 2,490,000 | 2,820,772 | ||||
Flint Hospital Building Authority Rev., (Hurley Medical Center), 7.50%, 7/1/39 | 1,250,000 | 1,428,787 | ||||
Kentwood Economic Development Corp. Rev., (Limited Obligation/Holland Home), 5.625%, 11/15/41 | 1,750,000 | 1,846,950 | ||||
Michigan Finance Authority Rev., Series 2014, (Thomas M. Cooley Law School Project), 6.75%, 7/1/44(1) | 1,000,000 | 1,058,970 | ||||
Michigan Finance Authority Rev., Series 2014, (MidMichigan Health Credit Group), 5.00%, 6/1/39 | 835,000 | 917,089 | ||||
Michigan Finance Authority Rev., Series 2015 A, (Detroit School District), 5.00%, 5/1/25 (Q-SBLF) | 375,000 | 445,286 | ||||
Royal Oak Hospital Finance Authority Rev., Series 2014 D, (William Beaumont Hospital), 5.00%, 9/1/39 | 1,600,000 | 1,755,616 | ||||
10,273,470 | ||||||
Minnesota — 0.2% | ||||||
Hugo Charter School Lease Rev., Series 2014 A, (Noble Academy Project), 5.00%, 7/1/44 | 1,000,000 | 987,960 | ||||
Mississippi — 0.7% | ||||||
Mississippi Development Bank Special Obligation Rev., Series 2015 A, (Municipal Energy Agency of Mississippi Power Supply), 5.00%, 3/1/29 (AGM)(8) | 2,640,000 | 3,026,074 | ||||
Missouri — 2.9% | ||||||
Kirkwood Industrial Development Authority Rev., Series 2010 A, (Aberdeen Heights), 8.25%, 5/15/45 | 3,000,000 | 3,392,400 | ||||
Missouri State Health & Educational Facilities Authority Rev., (Kansas City Art Institute), VRDN, 0.03%, 12/1/15 (LOC: Commerce Bank N.A.) | 4,100,000 | 4,100,000 | ||||
Missouri State Health & Educational Facilities Authority Rev., Series 2011, (Lutheran Senior Services), 6.00%, 2/1/41 | 1,250,000 | 1,372,050 | ||||
Missouri State Health & Educational Facilities Authority Rev., Series 2013, (St. Louis College of Pharmacy Project), 5.50%, 5/1/43 | 1,000,000 | 1,098,130 | ||||
Missouri State Health & Educational Facilities Authority Rev., Series 2015 B, (St. Louis College of Pharmacy Project), 5.00%, 5/1/45 | 1,890,000 | 1,983,120 | ||||
11,945,700 | ||||||
Nebraska — 1.7% | ||||||
Central Plains Energy Project Rev., 5.00%, 9/1/42 | 1,360,000 | 1,468,936 |
12
Principal Amount | Value | |||||
Douglas County Hospital Authority No. 2 Rev., (Nebraska Methodist Health System), 5.00%, 11/1/45 | $ | 1,250,000 | $ | 1,374,587 | ||
Douglas County Hospital Authority No. 3 Rev., (Nebraska Methodist Health System), 5.00%, 11/1/45 | 250,000 | 274,918 | ||||
Omaha Public Power District Rev., Series 2012 A, 5.00%, 2/1/42 | 1,500,000 | 1,661,520 | ||||
Santee Sioux Nation Tribal Health Care Rev., (Indian Health Service Joint Venture), 8.75%, 10/1/20 (Acquired 11/19/09, Cost $2,400,000)(9) | 2,400,000 | 2,407,344 | ||||
7,187,305 | ||||||
Nevada — 1.1% | ||||||
Clark County Improvement District No. 159 Special Assessment Rev., 5.00%, 8/1/30(8) | 1,475,000 | 1,521,743 | ||||
Clark County Improvement District No. 159 Special Assessment Rev., 5.00%, 8/1/32(8) | 375,000 | 383,651 | ||||
Clark County Improvement District No. 159 Special Assessment Rev., 5.00%, 8/1/35(8) | 700,000 | 709,100 | ||||
Henderson Local Improvement District No. T-15 Special Assessment Rev., 6.10%, 3/1/24 | 925,000 | 939,291 | ||||
Nevada Department of Business & Industry Rev., Series 2015 A, (Somerset Academy), 5.125%, 12/15/45(1) | 1,000,000 | 1,001,530 | ||||
4,555,315 | ||||||
New Jersey — 3.6% | ||||||
New Jersey Economic Development Authority Rev., Series 1999, (Continental Airlines, Inc.), 5.25%, 9/15/29 | 1,000,000 | 1,092,390 | ||||
New Jersey Economic Development Authority Rev., Series 2003, (Continental Airlines, Inc.), 5.50%, 6/1/33 | 500,000 | 550,465 | ||||
New Jersey Economic Development Authority Rev., Series 2006 B, (Gloucester Marine Terminal), 6.875%, 1/1/37 | 2,990,000 | 2,992,272 | ||||
New Jersey Economic Development Authority Rev., Series 2013, (The Goethals Bridge Replacement Project), 5.375%, 1/1/43 | 1,600,000 | 1,716,368 | ||||
New Jersey Economic Development Authority Rev., Series 2014 UU, (School Facility Construction), 5.00%, 6/15/40 | 2,000,000 | 2,048,840 | ||||
New Jersey Economic Development Authority Rev., Series 2014, (Lions Gate Project), 5.25%, 1/1/44 | 1,000,000 | 1,026,110 | ||||
New Jersey Health Care Facilities Financing Authority Rev., Series 2014 A, (Barnabas Health Obligated), 5.00%, 7/1/44 | 1,000,000 | 1,089,860 | ||||
New Jersey Transportation Trust Fund Authority Rev., Series 2012 A, 5.00%, 6/15/42 | 1,000,000 | 1,019,530 | ||||
Tobacco Settlement Financing Corp. Rev., Series 2007 1-A, 4.75%, 6/1/34 | 2,000,000 | 1,617,160 | ||||
Tobacco Settlement Financing Corp. Rev., Series 2007 1A, 5.00%, 6/1/41 | 2,000,000 | 1,624,520 | ||||
14,777,515 | ||||||
New Mexico — 0.3% | ||||||
Montecito Estates Public Improvement District Levy Special Tax Rev., (City of Albuquerque), 7.00%, 10/1/37 | 1,070,000 | 1,094,878 | ||||
New York — 11.1% | ||||||
Brooklyn Arena Local Development Corp. Rev., (Barclays Center), 6.25%, 7/15/40 | 800,000 | 908,960 | ||||
Buffalo & Erie County Industrial Land Development Corp. Rev., (Orchard Park CCRC, Inc.), 5.00%, 11/15/37 | 1,500,000 | 1,592,415 | ||||
Build NYC Resource Corp. Rev., Series 2014, (Metropolitan College of New York Project), 5.50%, 11/1/44 | 1,000,000 | 1,070,730 | ||||
Build NYC Resource Corp. Rev., Series 2014, (Pratt Paper NY, Inc.), 5.00%, 1/1/35(1) | 1,000,000 | 1,069,940 |
13
Principal Amount | Value | |||||
Dutchess County Local Development Corp. Rev., Series 2015 A, (Marist College Project), 5.00%, 7/1/45 | $ | 3,000,000 | $ | 3,368,910 | ||
Long Island Power Authority Electric System Rev., Series 1998 2-B, VRDN, 0.02%, 12/1/15 (LOC: Bayerische Landesbank) | 2,700,000 | 2,700,000 | ||||
Metropolitan Transportation Authority Rev., Series 2013 D, 5.00%, 11/15/43 | 1,000,000 | 1,124,820 | ||||
New York City GO, Series 2013 A-1, 5.00%, 8/1/36 | 900,000 | 1,039,806 | ||||
New York City GO, Series 2013 J, 5.00%, 8/1/23 | 750,000 | 912,847 | ||||
New York City GO, Series 2015 A, 5.00%, 8/1/18 | 3,000,000 | 3,314,430 | ||||
New York City Industrial Development Agency Rev., Series 2002 B, (John F. Kennedy International Airport Terminal), VRDN, 2.00%, 8/1/16 | 3,000,000 | 3,005,220 | ||||
New York City Industrial Development Agency Rev., Series 2012 A, 5.00%, 7/1/28 | 1,000,000 | 1,076,790 | ||||
New York City Municipal Water Finance Authority Water & Sewer System Rev., Series 2015 FF, (Second General Resolution), 5.00%, 6/15/39 | 1,160,000 | 1,342,387 | ||||
New York Liberty Development Corp. Rev., (World Trade Center), 5.00%, 11/15/44(1) | 5,000,000 | 5,128,400 | ||||
New York Liberty Development Corp. Rev., Series 2005, (Goldman Sachs Headquarters), 5.25%, 10/1/35 | 1,030,000 | 1,230,294 | ||||
New York State Dormitory Authority Rev., Series 2013 A, 5.00%, 7/1/26 | 500,000 | 598,100 | ||||
New York State Dormitory Authority Rev., Series 2014 A, (Touro College & University System), 5.50%, 1/1/44 | 850,000 | 923,185 | ||||
New York State Dormitory Authority Rev., Series 2015 A, 5.00%, 3/15/17 | 1,795,000 | 1,897,423 | ||||
New York State Dormitory Authority Rev., Series 2015 A, (North Shore Long Island Jewish Obligated Group), 5.00%, 5/1/43 | 1,500,000 | 1,659,510 | ||||
Newburgh GO, Series 2012 A, 5.625%, 6/15/33 | 1,400,000 | 1,492,036 | ||||
Onondaga Civic Development Corp. Rev., Series 2014 A, (St. Joseph's Hospital Health Center Project), 5.125%, 7/1/31 | 500,000 | 527,575 | ||||
Port Authority of New York & New Jersey Special Obligation Rev., Series 8, (John F. Kennedy International Airport Terminal), 6.00%, 12/1/36 | 2,000,000 | 2,338,540 | ||||
Triborough Bridge & Tunnel Authority Rev., Series 2011 A, 5.00%, 1/1/28 | 3,000,000 | 3,490,830 | ||||
Triborough Bridge & Tunnel Authority Rev., Capital Appreciation, Series 2013 A, 0.00%, 11/15/30(2) | 2,050,000 | 1,241,726 | ||||
TSASC, Inc. Rev., Series 1, 5.125%, 6/1/42 | 1,000,000 | 915,240 | ||||
Westchester County Local Development Corp. Rev., Series 2014 A, (Pace University), 5.50%, 5/1/42 | 1,655,000 | 1,832,763 | ||||
45,802,877 | ||||||
North Carolina — 1.0% | ||||||
Charlotte-Mecklenburg Hospital Authority Rev., Series 2013 A, (Carolinas Health Care System), 5.00%, 1/15/39 | 1,250,000 | 1,378,888 | ||||
North Carolina Capital Facilities Finance Agency Rev., (Duke Energy Carolinas LLC), 4.375%, 10/1/31 | 1,500,000 | 1,606,815 | ||||
North Carolina Medical Care Commission Rev., Series 2015, (Pennybyrn at Maryfield), 5.00%, 10/1/35 | 1,000,000 | 1,045,710 | ||||
4,031,413 | ||||||
North Dakota — 0.4% | ||||||
Grand Forks Health Care Facilities Rev., Series 1996 A, (The United Hospital Obligation Group), VRDN, 0.01%, 12/1/15 (LOC: Bank of America N.A.) | 1,700,000 | 1,700,000 |
14
Principal Amount | Value | |||||
Ohio — 2.4% | ||||||
Buckeye Tobacco Settlement Financing Authority Rev., Series 2007 A-2, 5.125%, 6/1/24 | $ | 1,000,000 | $ | 896,220 | ||
Buckeye Tobacco Settlement Financing Authority Rev., Series 2007 A-2, 5.75%, 6/1/34 | 1,000,000 | 866,490 | ||||
Buckeye Tobacco Settlement Financing Authority Rev., Series 2007 A-2, 5.875%, 6/1/47 | 4,000,000 | 3,468,600 | ||||
Hamilton County Hospital Facilities Rev., (UC Health), 5.00%, 2/1/44 | 1,250,000 | 1,361,300 | ||||
Muskingum County Hospital Facilities Rev., (Genesis Healthcare System), 5.00%, 2/15/44 | 2,500,000 | 2,569,850 | ||||
Southeastern Ohio Port Authority Hospital Facilities Rev., Series 2015, (Memorial Health System), 5.00%, 12/1/43 | 250,000 | 254,353 | ||||
Southeastern Ohio Port Authority Hospital Facilities Rev., Series 2015, (Memorial Health System), 5.50%, 12/1/43 | 550,000 | 587,823 | ||||
10,004,636 | ||||||
Oklahoma — 2.3% | ||||||
Oklahoma Turnpike Authority Rev., Series 2011 A, (Second Series), 5.00%, 1/1/28 | 2,000,000 | 2,299,200 | ||||
Trustees of the Tulsa Municipal Airport Trust Rev., 5.50%, 12/1/35 | 4,000,000 | 4,292,840 | ||||
Tulsa County Industrial Authority Senior Living Community Rev., Series 2010 A, (Montereau, Inc.), 7.25%, 11/1/40 | 2,500,000 | 2,742,225 | ||||
9,334,265 | ||||||
Oregon — 1.7% | ||||||
Forest Grove Student Housing Rev., (Oak Tree Foundation), 5.50%, 3/1/37 (Acquired 6/28/07, Cost $1,385,000)(9) | 1,385,000 | 1,418,074 | ||||
Oregon GO, Series 2011 J, 5.00%, 5/1/36 | 1,250,000 | 1,451,412 | ||||
Oregon GO, Series 2015 F, (Article XI-Q State Projects), 5.00%, 5/1/39 | 1,500,000 | 1,748,565 | ||||
Salem Hospital Facility Authority Rev., (Capital Manor, Inc.), 6.00%, 5/15/42 | 1,000,000 | 1,097,730 | ||||
Salem Hospital Facility Authority Rev., (Capital Manor, Inc.), 6.00%, 5/15/47 | 1,250,000 | 1,373,875 | ||||
7,089,656 | ||||||
Pennsylvania — 4.3% | ||||||
Allegheny County Redevelopment Authority Tax Allocation Rev., (Pittsburgh Mills), 5.60%, 7/1/23 | 1,385,000 | 1,398,836 | ||||
Chester County Industrial Development Authority Rev., (Renaissance Academy Charter School), 5.00%, 10/1/44 | 1,000,000 | 1,046,350 | ||||
Montgomery County Industrial Development Authority Health System Rev., Series 2015 A, (Albert Einstein Heathcare Network), 5.25%, 1/15/45 | 1,110,000 | 1,191,008 | ||||
Pennsylvania Economic Development Financing Authority Rev., Series 2009 A, (Albert Einstein Healthcare Network), 6.25%, 10/15/19, Prerefunded at 100% of Par(3) | 2,000,000 | 2,311,680 | ||||
Pennsylvania Economic Development Financing Authority Rev., Series 2009 A, (Talen Energy Supply LLC), 6.40%, 12/1/38 | 1,000,000 | 1,045,770 | ||||
Pennsylvania Turnpike Commission Rev., Series 2011 B, 5.25%, 12/1/41 | 2,000,000 | 2,201,660 | ||||
Pennsylvania Turnpike Commission Rev., Series 2014 C, 5.00%, 12/1/44 | 880,000 | 976,879 | ||||
Philadelphia Authority for Industrial Development Rev., Series 2014 A, (First Philadelphia Preparatory Charter School Project), 7.25%, 6/15/43 | 1,500,000 | 1,698,810 | ||||
Philadelphia GO, Series 2014 A, 5.00%, 7/15/38 | 1,500,000 | 1,663,455 |
15
Principal Amount | Value | |||||
Philadelphia Hospitals & Higher Education Facilities Authority Rev., Series 2012 A, (Temple University Health System), 5.625%, 7/1/42 | $ | 2,500,000 | $ | 2,685,175 | ||
Philadelphia Municipal Authority Lease Rev., 6.50%, 4/1/39 | 1,500,000 | 1,700,265 | ||||
17,919,888 | ||||||
Rhode Island — 0.2% | ||||||
Tobacco Settlement Financing Corp. Rev., Series 2015 B, 5.00%, 6/1/50 | 890,000 | 903,457 | ||||
South Carolina — 1.3% | ||||||
Piedmont Municipal Power Agency Rev., Series 2015 A, 5.00%, 1/1/25 | 1,245,000 | 1,482,061 | ||||
South Carolina Jobs-Economic Development Authority Hospital Rev., (Palmetto Health), 5.75%, 8/1/39 | 1,475,000 | 1,594,342 | ||||
Spartanburg County Regional Health Services District Rev., Series 2012 A, 5.00%, 4/15/37 | 2,000,000 | 2,172,980 | ||||
5,249,383 | ||||||
Tennessee — 0.3% | ||||||
Clarksville Public Building Authority Rev., (Adjusted Financing Morristown Loans), VRDN, 0.01%, 12/1/15 (LOC: Bank of America N.A.) | 1,435,000 | 1,435,000 | ||||
Texas — 5.0% | ||||||
Board of Managers Joint Guadalupe County-City of Seguin Hospital Rev., 5.00%, 12/1/45(8) | 2,000,000 | 2,023,540 | ||||
Central Texas Regional Mobility Authority Rev., Series 2015 A, (Senior Lien), 5.00%, 1/1/40 | 1,500,000 | 1,642,170 | ||||
Dallas-Fort Worth International Airport Rev., Series 2012 B, 5.00%, 11/1/26 | 3,000,000 | 3,413,040 | ||||
Houston Convention & Entertainment Facilities Department Special Tax Rev., 5.00%, 9/1/40 | 875,000 | 969,692 | ||||
Houston Hotel Occupancy Tax Rev., (Convention & Entertainment), 5.00%, 9/1/39 | 1,000,000 | 1,109,010 | ||||
La Vernia Higher Education Finance Corp. Rev., Series 2009 A, (Kipp, Inc.), 6.25%, 8/15/19, Prerefunded at 100% of Par(3) | 1,000,000 | 1,182,720 | ||||
Love Field Airport Modernization Corp. Special Facilities Rev., (Southwest Airlines Co.), 5.25%, 11/1/40 | 500,000 | 547,825 | ||||
North Texas Tollway Authority Rev., Series 2015 B, 5.00%, 1/1/40 | 890,000 | 984,287 | ||||
San Antonio Electric & Gas Rev., (Junior Lien), 5.00%, 2/1/43 | 650,000 | 723,080 | ||||
Tarrant County Cultural Education Facilities Finance Corp. Rev., (Scott & White Healthcare Obligated Group), 5.00%, 8/15/43 | 1,000,000 | 1,106,930 | ||||
Texas Private Activity Bond Surface Transportation Corp. Rev., (Senior Lien/LBJ Infrastructure), 7.00%, 6/30/40 | 3,000,000 | 3,606,180 | ||||
Texas Public Finance Authority Charter School Finance Corp. Rev., Series 2010 A, (Cosmos Foundation, Inc.), 6.20%, 2/15/20, Prerefunded at 100% of Par(3) | 1,500,000 | 1,804,650 | ||||
Travis County Health Facilities Development Corp. Rev., (Westminster Manor Health), 7.125%, 11/1/40 | 1,500,000 | 1,721,520 | ||||
20,834,644 | ||||||
Virginia — 3.1% | ||||||
Cherry Hill Community Development Authority Special Assessment Rev., (Potomac Shores Project), 5.40%, 3/1/45(1) | 1,000,000 | 1,023,990 | ||||
Dulles Town Center Community Development Authority Special Assessment Rev., 4.25%, 3/1/26 | 1,750,000 | 1,754,795 | ||||
Fairfax County Economic Development Authority Rev., (Silver Line Phase I), 5.00%, 4/1/36 | 570,000 | 636,713 | ||||
Greater Richmond Convention Center Authority Rev., 5.00%, 6/15/31 | 1,000,000 | 1,168,490 |
16
Principal Amount/ Shares | Value | |||||
Lower Magnolia Green Community Development Authority Special Assessment Rev., Series 2015, 5.00%, 3/1/45(1) | $ | 1,000,000 | $ | 995,350 | ||
Mosaic Community Development Authority Tax Allocation Rev., Series 2011 A, 6.875%, 3/1/36 | 1,000,000 | 1,150,760 | ||||
Tobacco Settlement Financing Corp. Rev., Series 2007 B-1, 5.00%, 6/1/47 | 500,000 | 389,580 | ||||
Virginia College Building Authority Rev., Series 2015 A, (Marymount University Project), 5.00%, 7/1/45(1) | 860,000 | 883,117 | ||||
Virginia College Building Authority Rev., Series 2015 B, (Marymount University Project), 5.00%, 7/1/45(1) | 400,000 | 410,752 | ||||
Washington County Industrial Development Authority Hospital Facility Rev., Series 2009 C, (Mountain States Health Alliance), 7.75%, 7/1/38 | 1,000,000 | 1,141,360 | ||||
Wise County Industrial Development Authority Rev., Series 2009 A, (Virginia Electric and Power Co.), VRDN, 2.15%, 9/1/20 | 3,000,000 | 3,066,300 | ||||
12,621,207 | ||||||
Washington — 2.3% | ||||||
Port of Seattle Industrial Development Corp. Rev., (Delta Airlines, Inc.), 5.00%, 4/1/30 | 1,000,000 | 1,048,070 | ||||
Port of Seattle Rev., Series 2015 B, 5.00%, 3/1/18 | 1,000,000 | 1,088,420 | ||||
Seattle Municipal Light & Power Rev., Series 2015 B-2, VRDN, 0.69%, 12/3/15 | 3,750,000 | 3,750,000 | ||||
Washington State Housing Finance Commission Rev., Series 2014 A, (Rockwood Retirement Communities Project), 7.50%, 1/1/49(1) | 2,000,000 | 2,287,960 | ||||
Washington State Housing Finance Commission Rev., Series 2015 A, (Heron's Key Obligated Group), 7.00%, 7/1/50(1) | 1,250,000 | 1,275,225 | ||||
9,449,675 | ||||||
Wisconsin — 1.7% | ||||||
Public Finance Authority Rev., (Roseman University Health Sciences), 5.50%, 4/1/32 | 2,000,000 | 2,027,680 | ||||
Wisconsin Department of Transportation Rev., Series 1, 5.00%, 7/1/30 | 2,500,000 | 2,940,725 | ||||
Wisconsin Health & Educational Facilities Authority Rev., Series 2009 A, (St. John's Communities, Inc.), 7.625%, 9/15/39 | 1,000,000 | 1,177,650 | ||||
Wisconsin Health & Educational Facilities Authority Rev., Series 2014, (Mile Bluff Medical Center, Inc.), 5.75%, 5/1/39 | 1,000,000 | 1,052,730 | ||||
7,198,785 | ||||||
Wyoming — 0.5% | ||||||
Campbell County Solid Waste Facilities Rev., Series 2009 A, (Basin Electric Power Cooperative), 5.75%, 7/15/39 | 2,000,000 | 2,263,160 | ||||
TOTAL MUNICIPAL SECURITIES (Cost $377,047,088) | 395,788,740 | |||||
TEMPORARY CASH INVESTMENTS — 5.1% | ||||||
Federated Tax-Free Obligations Fund, Institutional Shares (Cost $21,000,000) | 21,000,000 | 21,000,000 | ||||
TOTAL INVESTMENT SECURITIES — 100.7% (Cost $398,047,088) | 416,788,740 | |||||
OTHER ASSETS AND LIABILITIES — (0.7)% | (3,071,978) | |||||
TOTAL NET ASSETS — 100.0% | $ | 413,716,762 |
17
NOTES TO SCHEDULE OF INVESTMENTS | ||
AGC | - | Assured Guaranty Corporation |
AGM | - | Assured Guaranty Municipal Corporation |
BAM | - | Build America Mutual Assurance Company |
COP | - | Certificates of Participation |
GA | - | Guaranty Agreement |
GO | - | General Obligation |
LOC | - | Letter of Credit |
NATL-RE | - | National Public Finance Guarantee Corporation - Reinsured |
Q-SBLF | - | Qualified School Board Loan Fund |
VRDN | - | Variable Rate Demand Note. Interest reset date is indicated. Rate shown is effective at the period end. |
(1) | Restricted security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold without restriction to qualified institutional investors and have been deemed liquid under policies approved by the Board of Trustees. The aggregate value of these securities at the period end was $24,063,625, which represented 5.8% of total net assets. |
(2) | Security is a zero-coupon bond. Zero-coupon securities are issued at a substantial discount from their value at maturity. |
(3) | Escrowed to maturity in U.S. government securities or state and local government securities. |
(4) | Coupon rate adjusts periodically based upon a predetermined schedule. Interest reset date is indicated. Rate shown is effective at the period end. |
(5) | Non-income producing. |
(6) | Security is in default. |
(7) | Maturity is in default. |
(8) | When-issued security. The issue price and yield are fixed on the date of the commitment, but payment and delivery are scheduled for a future date. |
(9) | Restricted security that may not be offered for public sale without being registered with the Securities and Exchange Commission and/or may be subject to resale, redemption or transferability restrictions. The aggregate value of these securities at the period end was $3,825,418, which represented 0.9% of total net assets. |
See Notes to Financial Statements.
18
Statement of Assets and Liabilities |
NOVEMBER 30, 2015 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $398,047,088) | $ | 416,788,740 | |
Cash | 677,155 | ||
Receivable for investments sold | 236,000 | ||
Receivable for capital shares sold | 702,020 | ||
Interest receivable | 5,100,030 | ||
423,503,945 | |||
Liabilities | |||
Payable for investments purchased | 8,739,840 | ||
Payable for capital shares redeemed | 592,752 | ||
Accrued management fees | 193,939 | ||
Distribution and service fees payable | 37,540 | ||
Dividends payable | 223,112 | ||
9,787,183 | |||
Net Assets | $ | 413,716,762 | |
Net Assets Consist of: | |||
Capital paid in | $ | 432,981,872 | |
Distributions in excess of net investment income | (142,774 | ) | |
Accumulated net realized loss | (37,863,988 | ) | |
Net unrealized appreciation | 18,741,652 | ||
$ | 413,716,762 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class | $278,443,860 | 29,580,655 | $9.41 | |||
Institutional Class | $26,825,507 | 2,849,945 | $9.41 | |||
A Class | $82,929,798 | 8,809,949 | $9.41* | |||
C Class | $25,517,597 | 2,712,232 | $9.41 |
*Maximum offering price $9.85 (net asset value divided by 0.955).
See Notes to Financial Statements.
19
Statement of Operations |
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2015 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Interest | $ | 8,732,775 | |
Expenses: | |||
Management fees | 1,124,466 | ||
Distribution and service fees: | |||
A Class | 93,090 | ||
C Class | 125,704 | ||
Trustees' fees and expenses | 11,362 | ||
Other expenses | 119 | ||
1,354,741 | |||
Net investment income (loss) | 7,378,034 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (323,127 | ) | |
Futures contract transactions | 206,557 | ||
(116,570 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 2,568,023 | ||
Futures contracts | 96,565 | ||
2,664,588 | |||
Net realized and unrealized gain (loss) | 2,548,018 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 9,926,052 |
See Notes to Financial Statements.
20
Statement of Changes in Net Assets |
SIX MONTHS ENDED NOVEMBER 30, 2015 (UNAUDITED) AND YEAR ENDED MAY 31, 2015 | ||||||
Increase (Decrease) in Net Assets | November 30, 2015 | May 31, 2015 | ||||
Operations | ||||||
Net investment income (loss) | $ | 7,378,034 | $ | 14,337,716 | ||
Net realized gain (loss) | (116,570 | ) | (3,830,110 | ) | ||
Change in net unrealized appreciation (depreciation) | 2,664,588 | 7,396,340 | ||||
Net increase (decrease) in net assets resulting from operations | 9,926,052 | 17,903,946 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (5,128,864 | ) | (10,220,765 | ) | ||
Institutional Class | (522,280 | ) | (771,394 | ) | ||
A Class | (1,360,125 | ) | (2,558,722 | ) | ||
C Class | (366,765 | ) | (786,832 | ) | ||
Decrease in net assets from distributions | (7,378,034 | ) | (14,337,713 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 39,231,507 | 19,500,831 | ||||
Net increase (decrease) in net assets | 41,779,525 | 23,067,064 | ||||
Net Assets | ||||||
Beginning of period | 371,937,237 | 348,870,173 | ||||
End of period | $ | 413,716,762 | $ | 371,937,237 | ||
Distributions in excess of net investment income | $ | (142,774 | ) | $ | (142,774 | ) |
See Notes to Financial Statements.
21
Notes to Financial Statements |
NOVEMBER 30, 2015 (UNAUDITED)
1. Organization
American Century Municipal Trust (the trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Massachusetts business trust. High-Yield Municipal Fund (the fund) is one fund in a series issued by the trust. The fund is nondiversified as defined under the 1940 Act. The fund’s investment objective is to seek high current income that is exempt from federal income tax. The fund also seeks capital appreciation as a secondary objective.
The fund offers the Investor Class, the Institutional Class, the A Class and the C Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. The share classes differ principally in their respective sales charges and distribution and shareholder servicing expenses and arrangements. The Institutional Class is made available to institutional shareholders or through financial intermediaries whose clients do not require the same level of shareholder and administrative services as shareholders of other classes. As a result, the Institutional Class is charged a lower unified management fee.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Trustees has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Fixed income securities maturing in greater than 60 days at the time of purchase are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Fixed income securities maturing within 60 days at the time of purchase may be valued at cost, plus or minus any amortized discount or premium or at the evaluated mean as provided by an independent pricing service. Evaluated mean prices are commonly derived through utilization of market models, which may consider, among other factors: trade data, quotations from dealers and active market makers, relevant yield curve and spread data, related sector levels, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
Open-end management investment companies are valued at the reported net asset value per share. Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate clearing corporation.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Trustees or its delegate, in accordance with policies and procedures adopted by the Board of Trustees. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
22
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investments, including, but not limited to, futures contracts and when-issued securities. American Century Investment Management, Inc. (ACIM) (the investment advisor) monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for margin requirements on futures contracts.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized gains, if any, are generally declared and paid annually.
Indemnifications — Under the trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and trustees of the trust are also officers and/or directors of American Century Companies, Inc. (ACC). The trust's investment advisor, ACIM, the trust's distributor, American Century Investment Services, Inc. (ACIS), and the trust's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The trust has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent trustees (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds. The rates for the Investment Category Fee range from 0.2925% to 0.4100%. The rates for the Complex Fee range from 0.2500% to 0.3100% for the Investor Class, A Class and C Class. The rates for the Complex Fee range from 0.0500% to 0.1100% for the Institutional Class. The effective annual management fee for each class for the six months ended November 30, 2015 was 0.60% for the Investor Class, A Class and C Class and 0.40% for the Institutional Class.
23
Distribution and Service Fees — The Board of Trustees has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class and C Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the six months ended November 30, 2015 are detailed in the Statement of Operations.
Trustees’ Fees and Expenses — The Board of Trustees is responsible for overseeing the investment advisor’s management and operations of the fund. The trustees receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the six months ended November 30, 2015 were $128,413,310 and $107,054,581, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows (unlimited number of shares authorized):
Six months ended November 30, 2015 | Year ended May 31, 2015 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class | ||||||||||
Sold | 5,450,129 | $ | 50,866,980 | 12,096,857 | $ | 113,210,879 | ||||
Issued in reinvestment of distributions | 424,197 | 3,962,916 | 800,926 | 7,501,963 | ||||||
Redeemed | (3,463,476 | ) | (32,280,779 | ) | (11,107,061 | ) | (103,781,243 | ) | ||
2,410,850 | 22,549,117 | 1,790,722 | 16,931,599 | |||||||
Institutional Class | ||||||||||
Sold | 491,675 | 4,574,528 | 1,118,574 | 10,444,062 | ||||||
Issued in reinvestment of distributions | 55,902 | 522,280 | 82,090 | 769,769 | ||||||
Redeemed | (135,799 | ) | (1,264,754 | ) | (202,358 | ) | (1,883,769 | ) | ||
411,778 | 3,832,054 | 998,306 | 9,330,062 | |||||||
A Class | ||||||||||
Sold | 3,124,004 | 29,022,347 | 2,673,505 | 25,082,535 | ||||||
Issued in reinvestment of distributions | 134,793 | 1,259,632 | 240,333 | 2,248,964 | ||||||
Redeemed | (1,882,887 | ) | (17,531,497 | ) | (3,534,826 | ) | (32,843,057 | ) | ||
1,375,910 | 12,750,482 | (620,988 | ) | (5,511,558 | ) | |||||
C Class | ||||||||||
Sold | 208,163 | 1,941,559 | 299,356 | 2,808,283 | ||||||
Issued in reinvestment of distributions | 28,758 | 268,604 | 60,697 | 567,867 | ||||||
Redeemed | (226,479 | ) | (2,110,309 | ) | (496,611 | ) | (4,625,422 | ) | ||
10,442 | 99,854 | (136,558 | ) | (1,249,272 | ) | |||||
Net increase (decrease) | 4,208,980 | $ | 39,231,507 | 2,031,482 | $ | 19,500,831 |
24
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Municipal Securities | — | $ | 395,788,740 | — | ||||
Temporary Cash Investments | $ | 21,000,000 | — | — | ||||
$ | 21,000,000 | $ | 395,788,740 | — |
7. Derivative Instruments
Interest Rate Risk — The fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The value of bonds generally declines as interest rates rise. A fund may enter into futures contracts based on a bond index or a specific underlying security. A fund may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, a fund will segregate cash, cash equivalents or other appropriate liquid securities on its records in amounts sufficient to meet requirements. Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the futures contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average exposure to interest rate risk derivative instruments held during the period was 34 contracts.
At period end, the fund did not have any derivative instruments disclosed on the Statement of Assets and Liabilities. For the six months ended November 30, 2015, the effect of interest rate risk derivative instruments on the Statement of Operations was $206,557 in net realized gain (loss) on futures contract transactions and $96,565 in change in net unrealized appreciation (depreciation) on futures contracts.
8. Risk Factors
The fund invests in lower-rated debt securities, which are subject to substantial risks including liquidity risk and credit risk.
25
9. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of November 30, 2015, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 398,047,088 | |
Gross tax appreciation of investments | $ | 22,780,687 | |
Gross tax depreciation of investments | (4,039,035) | ||
Net tax appreciation (depreciation) of investments | $ | 18,741,652 |
The cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes.
As of May 31, 2015, the fund had accumulated short-term capital losses of $(33,918,069) and accumulated long-term capital losses of $(4,247,603), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. Any unlimited losses will be required to be utilized prior to the losses which carry an expiration date. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. Capital loss carryovers expire as follows:
2016 | 2017 | 2018 | 2019 | Unlimited (Short-Term) | Unlimited (Long-Term) |
$(151,664) | $(8,112,975) | $(11,481,481) | $(10,841,523) | $(3,330,426) | $(4,247,603) |
26
Financial Highlights |
For a Share Outstanding Throughout the Years Ended May 31 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2015(3) | $9.36 | 0.18 | 0.05 | 0.23 | (0.18) | $9.41 | 2.52% | 0.60%(4) | 3.93%(4) | 28% | $278,444 | ||
2015 | $9.25 | 0.39 | 0.11 | 0.50 | (0.39) | $9.36 | 5.43% | 0.60% | 4.12% | 48% | $254,276 | ||
2014 | $9.55 | 0.39 | (0.30) | 0.09 | (0.39) | $9.25 | 1.21% | 0.60% | 4.40% | 87% | $234,790 | ||
2013 | $9.32 | 0.40 | 0.23 | 0.63 | (0.40) | $9.55 | 6.85% | 0.60% | 4.16% | 111% | $265,529 | ||
2012 | $8.50 | 0.44 | 0.82 | 1.26 | (0.44) | $9.32 | 15.16% | 0.61% | 4.89% | 70% | $237,949 | ||
2011 | $8.82 | 0.47 | (0.32) | 0.15 | (0.47) | $8.50 | 1.76% | 0.61% | 5.41% | 27% | $126,327 | ||
Institutional Class | |||||||||||||
2015(3) | $9.36 | 0.19 | 0.05 | 0.24 | (0.19) | $9.41 | 2.62% | 0.40%(4) | 4.13%(4) | 28% | $26,826 | ||
2015 | $9.25 | 0.40 | 0.11 | 0.51 | (0.40) | $9.36 | 5.64% | 0.40% | 4.32% | 48% | $22,816 | ||
2014 | $9.56 | 0.41 | (0.31) | 0.10 | (0.41) | $9.25 | 1.31% | 0.40% | 4.60% | 87% | $13,321 | ||
2013 | $9.32 | 0.42 | 0.24 | 0.66 | (0.42) | $9.56 | 7.17% | 0.40% | 4.36% | 111% | $4,273 | ||
2012 | $8.50 | 0.45 | 0.83 | 1.28 | (0.46) | $9.32 | 15.39% | 0.41% | 5.09% | 70% | $7,260 | ||
2011 | $8.82 | 0.49 | (0.32) | 0.17 | (0.49) | $8.50 | 1.97% | 0.41% | 5.61% | 27% | $4,829 |
27
For a Share Outstanding Throughout the Years Ended May 31 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||
2015(3) | $9.36 | 0.17 | 0.05 | 0.22 | (0.17) | $9.41 | 2.40% | 0.85%(4) | 3.68%(4) | 28% | $82,930 | ||
2015 | $9.25 | 0.36 | 0.11 | 0.47 | (0.36) | $9.36 | 5.17% | 0.85% | 3.87% | 48% | $69,573 | ||
2014 | $9.55 | 0.37 | (0.30) | 0.07 | (0.37) | $9.25 | 0.96% | 0.85% | 4.15% | 87% | $74,515 | ||
2013 | $9.32 | 0.37 | 0.24 | 0.61 | (0.38) | $9.55 | 6.58% | 0.85% | 3.91% | 111% | $104,785 | ||
2012 | $8.50 | 0.42 | 0.82 | 1.24 | (0.42) | $9.32 | 14.87% | 0.86% | 4.64% | 70% | $92,154 | ||
2011 | $8.82 | 0.45 | (0.32) | 0.13 | (0.45) | $8.50 | 1.51% | 0.86% | 5.16% | 27% | $78,325 | ||
C Class | |||||||||||||
2015(3) | $9.35 | 0.14 | 0.06 | 0.20 | (0.14) | $9.41 | 2.12% | 1.60%(4) | 2.93%(4) | 28% | $25,518 | ||
2015 | $9.25 | 0.29 | 0.10 | 0.39 | (0.29) | $9.35 | 4.28% | 1.60% | 3.12% | 48% | $25,272 | ||
2014 | $9.55 | 0.30 | (0.30) | — | (0.30) | $9.25 | 0.21% | 1.60% | 3.40% | 87% | $26,244 | ||
2013 | $9.32 | 0.30 | 0.24 | 0.54 | (0.31) | $9.55 | 5.91% | 1.60% | 3.16% | 111% | $34,865 | ||
2012 | $8.49 | 0.35 | 0.83 | 1.18 | (0.35) | $9.32 | 14.03% | 1.61% | 3.89% | 70% | $31,344 | ||
2011 | $8.81 | 0.38 | (0.32) | 0.06 | (0.38) | $8.49 | 0.75% | 1.61% | 4.41% | 27% | $24,885 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended November 30, 2015 (unaudited). |
(4) | Annualized. |
See Notes to Financial Statements.
28
Approval of Management Agreement |
At a meeting held on June 16, 2015, the Fund’s Board of Trustees unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s directors/trustees, including a majority of the independent Trustees, each year. The Board regards this annual evaluation and renewal as one of its most important responsibilities.
The independent Trustees have memorialized a statement regarding the relationship between their ongoing obligations to oversee and evaluate the performance of the Advisor and their annual consideration of renewal of the management agreement. In that statement, the independent Trustees noted that their assessment of the Advisor’s performance is an ongoing process that takes place over the entire year and is informed by all of the extensive information that the Board and its committees receive and consider over time. This information, together with the materials provided in connection with the review, are central to the Board’s assessment of the Advisor’s performance and its determination whether to renew the Fund’s management agreement.
Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and analysis relating to the proposed renewal. This information and analysis was compiled by the Advisor and certain independent providers of evaluation data concerning the Fund and the services provided to the Fund by the Advisor.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor included, but was not limited to, the following:
• | the nature, extent, and quality of investment management, shareholder services, and other services provided by the Advisor to the Fund; |
• | the wide range of other programs and services the Advisor provides to the Fund and its shareholders on a routine and non-routine basis; |
• | the investment performance of the Fund, including data comparing the Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies; |
• | the cost of owning the Fund compared to the cost of owning similar funds; |
• | the compliance policies, procedures, and regulatory experience of the Fund's service providers; |
• | financial data showing the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the overall profitability of the Advisor; |
• | possible economies of scale associated with the Advisor’s management of the Fund and other accounts under its management; |
• | data comparing services provided and charges to the Advisor's other investment management clients; |
• | acquired fund fees and expenses; |
• | payments by the Fund and the Advisor to financial intermediaries; and |
• | any collateral benefits derived by the Advisor from the management of the Fund. |
In keeping with its practice, the Board held two in-person meetings to review and discuss the information provided in response to their request. The independent Trustees also had the benefit of the advice of their independent counsel throughout the process.
29
Factors Considered
The Trustees considered all of the information provided by the Advisor, the independent data providers, and the independent Trustees’ independent counsel in connection with the review. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Trustees did not identify any single factor as being all-important or controlling and each Trustee may have attributed different levels of importance to different factors. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:
Nature, Extent and Quality of Services - Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that under the management agreement, the Advisor provides or arranges at its own expense a wide variety of services including:
• | constructing and designing the Fund |
• | portfolio research and security selection |
• | initial capitalization/funding |
• | securities trading |
• | Fund administration |
• | custody of Fund assets |
• | daily valuation of the Fund’s portfolio |
• | shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications |
• | legal services (except the independent Trustees’ counsel) |
• | regulatory and portfolio compliance |
• | financial reporting |
• | marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans) |
The Board noted that many of these services have expanded over time both in terms of quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management, Shareholder, and Other Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and approved strategies. Further, the Trustees recognize that the Advisor has an obligation to seek the best execution of fund trades. In providing these services, the Advisor utilizes teams of investment professionals (portfolio managers, analysts, research assistants, and securities traders) who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Portfolio Committee, regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Trustees also review detailed performance information during the management agreement approval process. If performance concerns are identified, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The Fund’s performance was below its benchmark for the one-, three-, five-, and ten-year periods reviewed by the Board. The Board discussed the Fund’s performance with the Advisor and was satisfied with the efforts being undertaken by the Advisor. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
30
Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities.
Certain aspects of shareholder and transfer agency service level efficiency and the quality of securities trading activities are measured by independent third party providers and are presented in comparison to other fund groups not managed by the Advisor. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund, its overall profitability, and its financial condition. The Trustees have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the current management fee. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders enhanced and expanded services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, taxes, interest, extraordinary expenses, the fees and expenses of the Fund’s independent Trustees (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing, and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unified fee to the total expense ratio of peer funds. The unified fee charged to shareholders of the Fund was below the median of the total expense ratios of the Fund’s peer universe. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
31
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Trustees also requested and received a description of payments made to intermediaries by the Fund and the Advisor. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. The Board noted that the Advisor’s primary business is managing mutual funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor receives proprietary research from broker-dealers that execute fund portfolio transactions. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Trustees. As a result of this process, the Board, including all of the independent Trustees and assisted by the advice of independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and throughout the year, concluded that the management agreement between the Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.
32
Additional Information |
Proxy Voting Policies
Descriptions of the principles and policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund are available without charge, upon request, by calling 1-800-345-2021 or visiting the "About Us" page of American Century Investments’ website at americancentury.com. A description of the policies is also available on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
33
Notes |
34
Notes |
35
Notes |
36
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century Municipal Trust | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2016 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-87762 1601 |
SEMIANNUAL REPORT | NOVEMBER 30, 2015 |
Intermediate-Term Tax-Free Bond Fund
Table of Contents |
President’s Letter | 2 | |
Performance | 3 | |
Fund Characteristics | ||
Shareholder Fee Example | ||
Schedule of Investments | ||
Statement of Assets and Liabilities | ||
Statement of Operations | ||
Statement of Changes in Net Assets | ||
Notes to Financial Statements | ||
Financial Highlights | ||
Approval of Management Agreement | ||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
Dear Investor: Thank you for reviewing this semiannual report for the six months ended November 30, 2015. It provides a macroeconomic and financial market overview (below), followed by fund performance, a schedule of fund investments, and other financial information. For additional commentary and updated information on fund performance, key factors that affected asset returns, and other insights regarding the investment markets, we encourage you to visit our website, americancentury.com. | |
Jonathan Thomas |
Municipal Bonds (Munis) Outperformed During a Volatile Period
Widespread concerns about economic growth (especially in China) and central bank monetary policy decisions helped spark sharp financial market volatility during the reporting period. China’s challenges and events included a stock market crash, a sudden currency devaluation, and massive monetary policy intervention by its central bank. These events rippled through the global markets from July through September, contributing to the decision by the U.S. Federal Reserve (the Fed) in September to delay raising its short-term interest rate target for fear of further roiling the markets. However, the Fed indicated in October that it could still raise rates by year end. This environment made it difficult to produce positive investment returns—the S&P 500 Index and the Barclays U.S. Aggregate Bond Index returned -0.21% and -0.12%, respectively, for the six months.
Meanwhile, munis outperformed. Despite default threats in Puerto Rico and financial concerns facing the city of Chicago and the states of Illinois and New Jersey, the broader muni market was viewed as a relative bastion of stability because of its comparatively high overall credit quality. Investors also focused on munis because this sector has historically performed relatively well in periods of rising interest rates, particularly if the rate increases reflect stronger economic conditions. The Barclays Municipal Bond Index advanced 2.37% for the six months.
After the reporting period, the Fed finally began the process of gradually increasing its overnight interest rate target. But we don’t expect a big increase in intermediate- to longer-maturity bond yields in the near term because of deflationary threats and other headwinds still facing the global economy. We believe the Fed’s moves (and conjecture about these moves) will be accompanied by further market volatility. This could present both challenges and opportunities for active investment managers. In this environment, we continue to believe in a disciplined, diversified, long-term investment approach, using professionally managed stock and bond portfolios to meet financial goals. We appreciate your continued trust in us.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Performance |
Total Returns as of November 30, 2015 | |||||||
Average Annual Returns | |||||||
Ticker Symbol | 6 months(1) | 1 year | 5 years | 10 years | Since Inception | Inception Date | |
Investor Class | TWTIX | 1.83% | 2.22% | 3.52% | 3.99% | 4.97% | 3/2/87 |
Barclays 7 Year Municipal Bond Index | — | 2.42% | 2.84% | 4.08% | 4.83% | N/A(2) | — |
Institutional Class | AXBIX | 1.93% | 2.42% | 3.74% | 4.20% | 4.00% | 4/15/03 |
A Class | TWWOX | 3/1/10 | |||||
No sales charge* | 1.70% | 1.96% | 3.28% | — | 3.29% | ||
With sales charge* | -2.84% | -2.63% | 2.33% | — | 2.46% | ||
C Class | TWTCX | 3/1/10 | |||||
No sales charge* | 1.32% | 1.20% | 2.51% | — | 2.50% | ||
With sales charge* | 0.32% | 1.20% | 2.51% | — | 2.50% |
* Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 4.50% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
(1) | Total returns for periods less than one year are not annualized. |
(2) | Benchmark data first available January 1990. |
Total Annual Fund Operating Expenses | |||
Investor Class | Institutional Class | A Class | C Class |
0.47% | 0.27% | 0.72% | 1.47% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
3
Fund Characteristics |
NOVEMBER 30, 2015 | |
Portfolio at a Glance | |
Weighted Average Maturity | 9.3 years |
Average Duration (Modified) | 4.4 years |
Top Five States and Territories | % of net assets |
California | 17.1% |
New York | 16.8% |
Texas | 8.7% |
Florida | 6.3% |
Washington | 5.5% |
Top Five Sectors | % of fund investments |
General Obligation (State) | 14% |
Tollroads | 11% |
Special Tax | 11% |
General Obligation (Local) | 10% |
Lease Revenue | 8% |
Types of Investments in Portfolio | % of net assets |
Municipal Securities | 98.3% |
Temporary Cash Investments | 1.0% |
Other Assets and Liabilities | 0.7% |
4
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from June 1, 2015 to November 30, 2015.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
5
Beginning Account Value 6/1/15 | Ending Account Value 11/30/15 | Expenses Paid During Period(1) 6/1/15 - 11/30/15 | Annualized Expense Ratio(1) | |||
Actual | ||||||
Investor Class | $1,000 | $1,018.30 | $2.37 | 0.47% | ||
Institutional Class | $1,000 | $1,019.30 | $1.36 | 0.27% | ||
A Class | $1,000 | $1,017.00 | $3.63 | 0.72% | ||
C Class | $1,000 | $1,013.20 | $7.40 | 1.47% | ||
Hypothetical | ||||||
Investor Class | $1,000 | $1,022.65 | $2.38 | 0.47% | ||
Institutional Class | $1,000 | $1,023.65 | $1.37 | 0.27% | ||
A Class | $1,000 | $1,021.40 | $3.64 | 0.72% | ||
C Class | $1,000 | $1,017.65 | $7.41 | 1.47% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, to reflect the one-half year period. |
6
Schedule of Investments |
NOVEMBER 30, 2015 (UNAUDITED)
Principal Amount | Value | |||||
MUNICIPAL SECURITIES — 98.3% | ||||||
Alabama — 0.2% | ||||||
Alabama 21st Century Authority Rev., Series 2012 A, (Tobacco Settlement Revenue), 4.00%, 6/1/16 | $ | 1,060,000 | $ | 1,078,613 | ||
Alabama 21st Century Authority Rev., Series 2012 A, (Tobacco Settlement Revenue), 5.00%, 6/1/17 | 1,500,000 | 1,591,470 | ||||
Alabama 21st Century Authority Rev., Series 2012 A, (Tobacco Settlement Revenue), 5.00%, 6/1/19 | 4,510,000 | 5,061,979 | ||||
7,732,062 | ||||||
Alaska — 0.1% | ||||||
Aleutians East Borough Project Rev., (Aleutian Pribilof Islands, Inc.), 5.00%, 6/1/20 (ACA) | 1,875,000 | 1,880,719 | ||||
Arizona — 1.4% | ||||||
Arizona Board of Regents COP, Series 2006 A, (University of Arizona), 5.00%, 6/1/16, Prerefunded at 100% of Par (Ambac)(1) | 1,935,000 | 1,980,840 | ||||
Arizona Health Facilities Authority Rev., Series 2007 B, (Banner Health), VRN, 1.03%, 1/1/16 | 7,500,000 | 6,712,875 | ||||
Arizona Health Facilities Authority Rev., Series 2015 A, (Banner Health), 5.00%, 1/1/25 | 1,980,000 | 2,414,234 | ||||
Arizona Water Infrastructure Finance Authority Rev., Series 2010 A, 5.00%, 10/1/18 | 3,000,000 | 3,345,390 | ||||
City of Mesa Excise Tax Rev., 5.00%, 7/1/27 | 2,000,000 | 2,123,080 | ||||
Mohave County Industrial Development Authority Correctional Facilities Contract Rev., (Mohave Prison, LLC Expansion), 8.00%, 5/1/25 | 5,000,000 | 5,532,800 | ||||
Navajo County Unified School District No. 20 Rev., Series 2006 A, 5.00%, 7/1/17 (NATL-RE) | 1,815,000 | 1,925,987 | ||||
Phoenix Civic Improvement Corp. Airport Rev., Series 2010 A, (Junior Lien), 5.00%, 7/1/40 | 3,000,000 | 3,338,910 | ||||
Phoenix Civic Improvement Corp. Excise Tax Rev., Series 2015 A, 5.00%, 7/1/21 | 1,000,000 | 1,186,000 | ||||
Phoenix Civic Improvement Corp. Excise Tax Rev., Series 2015 A, 5.00%, 7/1/22 | 1,225,000 | 1,476,750 | ||||
Phoenix Civic Improvement Corp. Wastewater System Rev., (Senior Lien), 5.50%, 7/1/24 | 1,750,000 | 1,948,712 | ||||
Phoenix GO, Series 1995 A, 6.25%, 7/1/17 | 1,070,000 | 1,164,032 | ||||
Pima County Metropolitan Domestic Water Improvement District Rev., 5.25%, 7/1/18 (Ambac)(1) | 1,065,000 | 1,180,403 | ||||
Pima County Metropolitan Domestic Water Improvement District Rev., 5.25%, 7/1/18 (Ambac) | 645,000 | 708,365 | ||||
Pima County Metropolitan Domestic Water Improvement District Rev., 5.25%, 7/1/19 (Ambac)(1) | 1,120,000 | 1,282,770 | ||||
Pima County Metropolitan Domestic Water Improvement District Rev., 5.25%, 7/1/19 (Ambac) | 680,000 | 767,931 | ||||
Pinal County Apache Junction Unified School District No. 43 GO, Series 2006 B, (School Improvements), 5.00%, 7/1/24 (FGIC) | 775,000 | 796,382 | ||||
Salt River Project Agricultural Improvement & Power District Rev., Series 2008 A, (Electric System Distribution), 5.00%, 1/1/38 | 4,900,000 | 5,250,889 | ||||
Salt River Project Agricultural Improvement & Power District Rev., Series 2009 A, (Electric System Distribution), 5.00%, 1/1/39 | 4,060,000 | 4,471,400 | ||||
47,607,750 |
7
Principal Amount | Value | |||||
Arkansas — 0.1% | ||||||
Valdez Marine Terminal Rev., Series 2003 C, (BP Pipelines, Inc.), 5.00%, 1/1/21 (GA: BP plc) | $ | 2,600,000 | $ | 2,978,092 | ||
California — 17.1% | ||||||
Anaheim Public Financing Authority Rev., Series 2014 A, (Anaheim Convention Center Expansion Project), 5.00%, 5/1/24 | 1,500,000 | 1,816,050 | ||||
Anaheim Public Financing Authority Rev., Series 2014 A, (Anaheim Convention Center Expansion Project), 5.00%, 5/1/26 | 2,000,000 | 2,379,740 | ||||
Anaheim Public Financing Authority Rev., Series 2014 A, (Anaheim Convention Center Expansion Project), 5.00%, 5/1/27 | 1,725,000 | 2,039,588 | ||||
Anaheim Public Financing Authority Rev., Series 2014 A, (Anaheim Convention Center Expansion Project), 5.00%, 5/1/30 | 1,750,000 | 2,028,425 | ||||
Anaheim Public Financing Authority Rev., Series 2014 A, (Anaheim Convention Center Expansion Project), 5.00%, 5/1/31 | 2,000,000 | 2,313,340 | ||||
Anaheim Public Financing Authority Rev., Series 2014 A, (Anaheim Convention Center Expansion Project), 5.00%, 5/1/32 | 2,000,000 | 2,303,640 | ||||
Anaheim Public Financing Authority Rev., Series 2014 A, (Anaheim Convention Center Expansion Project), 5.00%, 5/1/33 | 1,800,000 | 2,067,498 | ||||
Anaheim Public Financing Authority Rev., Series 2014 A, (Anaheim Convention Center Expansion Project), 5.00%, 5/1/39 | 4,000,000 | 4,527,640 | ||||
Anaheim Public Financing Authority Rev., Series 2014 A, (Anaheim Convention Center Expansion Project), 5.00%, 5/1/46 | 3,900,000 | 4,389,411 | ||||
Bay Area Toll Authority Toll Bridge Rev., Series 2006 C-4, (San Francisco Bay Area), VRDN, 1.45%, 8/1/17 | 5,975,000 | 6,025,668 | ||||
Bay Area Toll Authority Toll Bridge Rev., Series 2006 F, (San Francisco Bay Area), 5.00%, 4/1/16, Prerefunded at 100% of Par(1) | 11,780,000 | 11,970,011 | ||||
Bay Area Toll Authority Toll Bridge Rev., Series 2007 A-1, (San Francisco Bay Area), VRDN, 0.71%, 12/3/15 | 2,000,000 | 2,001,700 | ||||
Bay Area Toll Authority Toll Bridge Rev., Series 2008 G-1, (San Francisco Bay Area), VRDN, 1.11%, 12/3/15 | 3,750,000 | 3,708,600 | ||||
Bay Area Toll Authority Toll Bridge Rev., Series 2012 F-1, (San Francisco Bay Area), 5.00%, 4/1/26 | 5,900,000 | 7,010,144 | ||||
Bay Area Toll Authority Toll Bridge Rev., Series 2014 B, (San Francisco Bay Area), VRDN, 1.50%, 4/2/18 | 1,970,000 | 1,985,346 | ||||
California Department of Water Resources Power Supply Rev., Series 2005 F-5, 5.00%, 5/1/22 | 6,215,000 | 6,828,421 | ||||
California Department of Water Resources Power Supply Rev., Series 2005 G-4, 5.00%, 5/1/16 | 2,450,000 | 2,499,564 | ||||
California Department of Water Resources Power Supply Rev., Series 2008 AE, (Central Valley), 5.00%, 6/1/18, Prerefunded at 100% of Par(1) | 2,795,000 | 3,080,286 | ||||
California Department of Water Resources Power Supply Rev., Series 2008 AE, (Central Valley), 5.00%, 12/1/22 | 205,000 | 226,236 | ||||
California Department of Water Resources Power Supply Rev., Series 2010 L, 5.00%, 5/1/16 | 5,000,000 | 5,101,150 | ||||
California Department of Water Resources Power Supply Rev., Series 2010 L, 5.00%, 5/1/19 | 5,000,000 | 5,683,350 | ||||
California Department of Water Resources Power Supply Rev., Series 2013 AM, (Central Valley), 5.00%, 12/1/25 | 10,185,000 | 12,341,368 | ||||
California Department of Water Resources Power Supply Rev., Series 2015 O, 5.00%, 5/1/21 | 9,760,000 | 11,638,214 | ||||
California Economic Recovery GO, Series 2009 A, 5.00%, 7/1/18(1) | 3,020,000 | 3,337,009 | ||||
California Economic Recovery GO, Series 2009 A, 5.00%, 7/1/18(1) | 870,000 | 961,324 | ||||
California Educational Facilities Authority Rev., Series 2009 A, (Pomona College), 5.00%, 1/1/24 | 3,500,000 | 3,915,310 | ||||
California Educational Facilities Authority Rev., Series 2015 A, (University of Southern California), 5.00%, 10/1/25 | 3,125,000 | 3,975,844 |
8
Principal Amount | Value | |||||
California GO, 5.00%, 10/1/17 | $ | 8,000,000 | $ | 8,627,920 | ||
California GO, 5.25%, 9/1/23 | 25,000,000 | 30,378,750 | ||||
California GO, 5.00%, 9/1/24 | 10,000,000 | 12,075,300 | ||||
California GO, 5.00%, 8/1/26 | 7,200,000 | 8,850,888 | ||||
California GO, 5.00%, 12/1/26 | 3,755,000 | 4,574,153 | ||||
California GO, 5.00%, 2/1/27 | 10,000,000 | 11,917,400 | ||||
California GO, 5.00%, 11/1/27 | 5,000,000 | 6,035,850 | ||||
California GO, 5.00%, 2/1/28 | 10,000,000 | 11,844,400 | ||||
California GO, 5.75%, 4/1/31 | 16,630,000 | 19,197,339 | ||||
California GO, 5.00%, 6/1/32 | 11,805,000 | 12,529,473 | ||||
California GO, 5.00%, 11/1/32 | 2,785,000 | 3,002,898 | ||||
California GO, 6.00%, 4/1/38 | 5,000,000 | 5,828,950 | ||||
California GO, 5.50%, 11/1/39 | 10,000,000 | 11,587,300 | ||||
California GO, Series 2012 B, VRN, 0.91%, 12/3/15 | 4,000,000 | 4,033,200 | ||||
California GO, Series 2012 B, VRN, 1.01%, 12/3/15 | 1,600,000 | 1,616,144 | ||||
California GO, Series 2012 B, VRN, 1.16%, 12/3/15 | 1,920,000 | 1,953,331 | ||||
California Health Facilities Financing Authority Rev., Series 2015, (Cedars-Sinai Medical Center), 5.00%, 11/15/28 | 5,750,000 | 6,970,725 | ||||
California Health Facilities Financing Authority Rev., Series 2015, (Cedars-Sinai Medical Center), 5.00%, 11/15/29 | 6,680,000 | 8,045,993 | ||||
California Health Facilities Financing Authority Rev., Series 2015, (Cedars-Sinai Medical Center), 5.00%, 11/15/30 | 2,000,000 | 2,381,960 | ||||
California Health Facilities Financing Authority Rev., Series 2008 A, (Lucile Salter Packard Children's Hospital), VRDN, 1.45%, 3/15/17 | 1,500,000 | 1,514,970 | ||||
California Health Facilities Financing Authority Rev., Series 2008 B, (Lucile Salter Packard Children's Hospital), VRDN, 1.45%, 3/15/17 | 2,200,000 | 2,221,956 | ||||
California Health Facilities Financing Authority Rev., Series 2008 C, (Lucile Salter Packard Children's Hospital), VRDN, 1.45%, 3/15/17 | 1,355,000 | 1,368,523 | ||||
California Health Facilities Financing Authority Rev., Series 2008 C, (Providence Health & Services), 6.50%, 10/1/18, Prerefunded at 100% of Par(1) | 35,000 | 40,465 | ||||
California Health Facilities Financing Authority Rev., Series 2008 C, (Providence Health & Services), 6.50%, 10/1/18, Prerefunded at 100% of Par(1) | 2,090,000 | 2,416,333 | ||||
California Health Facilities Financing Authority Rev., Series 2009 A, (Adventist Health System West), 5.75%, 9/1/39 | 2,500,000 | 2,846,950 | ||||
California Health Facilities Financing Authority Rev., Series 2009 A, (Catholic Healthcare West), 5.50%, 7/1/22 | 5,000,000 | 5,743,300 | ||||
California Health Facilities Financing Authority Rev., Series 2009 A, (Children's Hospital of Orange County), 6.50%, 11/1/38 | 10,000,000 | 11,816,600 | ||||
California Health Facilities Financing Authority Rev., Series 2011 D, (Sutter Health), 5.00%, 8/15/19 | 1,900,000 | 2,174,113 | ||||
California Health Facilities Financing Authority Rev., Series 2011 D, (Sutter Health), 5.00%, 8/15/24 | 1,250,000 | 1,475,438 | ||||
California Health Facilities Financing Authority Rev., Series 2013 A, (St. Joseph Health System), 5.00%, 7/1/37 | 1,775,000 | 2,028,452 | ||||
California Municipal Finance Authority COP, Series 2009, (Community Hospitals of Central California Obligated Group), 5.50%, 2/1/39 | 1,450,000 | 1,606,948 | ||||
California Municipal Finance Authority Rev., Series 2010 A, (University of La Verne), 6.25%, 6/1/40 | 1,500,000 | 1,714,710 | ||||
California Public Works Board Lease Rev., Series 2009 A, (Department of General Services - Building - 8 & 9), 6.25%, 4/1/34 | 4,000,000 | 4,677,600 | ||||
California Public Works Board Lease Rev., Series 2009 I-1, (Various Capital Projects), 5.375%, 11/1/22 | 8,000,000 | 9,369,360 |
9
Principal Amount | Value | |||||
California Public Works Board Lease Rev., Series 2012 A, (Various Capital Projects), 5.00%, 4/1/24 | $ | 11,500,000 | $ | 13,881,535 | ||
California Public Works Board Lease Rev., Series 2012 A, (Various Capital Projects), 5.00%, 4/1/25 | 5,000,000 | 5,977,150 | ||||
California Public Works Board Lease Rev., Series 2012 D, (California State University Projects), 5.00%, 9/1/36 | 1,935,000 | 2,202,843 | ||||
California State University Rev., Series 2015 A, 5.00%, 11/1/20 | 1,600,000 | 1,890,256 | ||||
California State University Rev., Series 2015 A, 5.00%, 11/1/21 | 1,235,000 | 1,489,027 | ||||
California State University Rev., Series 2015 A, 5.00%, 11/1/22 | 1,295,000 | 1,591,179 | ||||
California Statewide Communities Development Authority Rev., Series 2002 C, (Kaiser Permanente), VRDN, 5.00%, 11/1/17 | 2,400,000 | 2,548,560 | ||||
California Statewide Communities Development Authority Rev., Series 2009 E-2, (Kaiser Permanente), VRDN, 5.00%, 5/1/17 | 2,200,000 | 2,331,340 | ||||
California Statewide Communities Development Authority Rev., Series 2012 A, (Kaiser Permanente), 5.00%, 4/1/42 | 10,000,000 | 11,164,200 | ||||
California Statewide Communities Development Authority Rev., Series 2012 B, (Kaiser Permanente), VRDN, 0.96%, 12/3/15 | 5,000,000 | 5,010,550 | ||||
California Statewide Communities Development Authority Water & Waste Rev., Series 2004 A, (Pooled Financing Program), 5.25%, 10/1/19 (AGM) | 110,000 | 110,454 | ||||
Clovis Unified School District GO, Capital Appreciation, Series 2004 A, 0.00%, 8/1/29 (NATL-RE)(2) | 2,230,000 | 1,481,344 | ||||
Foothill / Eastern Transportation Corridor Agency Toll Road Rev., Series 2013 A, 6.00%, 1/15/49 | 2,350,000 | 2,762,237 | ||||
Foothill / Eastern Transportation Corridor Agency Toll Road Rev., Series 2013 B-1, VRDN, 5.00%, 1/15/18 | 3,750,000 | 3,957,150 | ||||
Foothill / Eastern Transportation Corridor Agency Toll Road Rev., Series 2013 B-3, VRDN, 5.50%, 1/15/23 | 3,900,000 | 4,500,717 | ||||
Foothill-De Anza Community College District GO, Series 2007 B, 5.00%, 8/1/17 (Ambac) | 1,595,000 | 1,669,439 | ||||
Golden State Tobacco Securitization Corp. Settlement Rev., Series 2013 A, 5.00%, 6/1/30 | 1,650,000 | 1,897,731 | ||||
Hesperia Unified School District COP, (2007 Capital Improvement), 5.00%, 2/1/17 (Ambac) | 670,000 | 696,143 | ||||
Inland Valley Development Agency Tax Allocation Rev., Series 2014 A, 5.25%, 9/1/37 | 2,225,000 | 2,506,974 | ||||
Inland Valley Development Agency Tax Allocation Rev., Series 2014 A, 5.00%, 9/1/44 | 2,355,000 | 2,567,398 | ||||
Jurupa Public Financing Authority Special Tax Rev., Series 2014 A, 5.00%, 9/1/26 | 1,485,000 | 1,729,877 | ||||
Jurupa Public Financing Authority Special Tax Rev., Series 2014 A, 5.00%, 9/1/28 | 1,250,000 | 1,433,525 | ||||
Jurupa Public Financing Authority Special Tax Rev., Series 2014 A, 5.00%, 9/1/29 | 1,060,000 | 1,209,820 | ||||
Los Angeles Community College District GO, Series 2008 E-1, (Election of 2001), 5.00%, 8/1/18, Prerefunded at 100% of Par(1) | 2,250,000 | 2,492,753 | ||||
Los Angeles County COP, (Disney Concert Hall), 5.00%, 9/1/20 | 900,000 | 1,049,193 | ||||
Los Angeles County COP, (Disney Concert Hall), 5.00%, 9/1/21 | 1,250,000 | 1,483,400 | ||||
Los Angeles Department of Water & Power System Rev., Series 2009 B, 5.00%, 7/1/20 | 5,000,000 | 5,690,000 | ||||
Los Angeles Department of Water & Power System Rev., Series 2011 A, 4.00%, 7/1/17 | 100,000 | 105,408 | ||||
Los Angeles Department of Water & Power System Rev., Series 2011 A, 5.00%, 7/1/18 | 500,000 | 553,915 | ||||
Los Angeles Department of Water & Power System Rev., Series 2011 A, 5.00%, 7/1/19 | 250,000 | 285,328 |
10
Principal Amount | Value | |||||
Los Angeles Department of Water & Power System Rev., Series 2011 A, 5.00%, 7/1/20 | $ | 1,000,000 | $ | 1,172,240 | ||
Los Angeles Department of Water & Power System Rev., Series 2011 A, 5.00%, 7/1/21 | 10,000,000 | 11,945,900 | ||||
Los Angeles Department of Water & Power System Rev., Series 2011 A, 5.00%, 7/1/21 | 500,000 | 590,500 | ||||
Los Angeles Unified School District GO, Series 2009 D, 5.00%, 7/1/18 | 2,300,000 | 2,544,881 | ||||
Los Angeles Unified School District GO, Series 2009 D, 5.00%, 7/1/20 | 6,065,000 | 6,879,893 | ||||
Los Angeles Unified School District GO, Series 2009 I, 5.00%, 7/1/21 | 6,520,000 | 7,396,027 | ||||
Los Angeles Unified School District GO, Series 2011 A-1, 5.00%, 7/1/18 | 3,205,000 | 3,546,236 | ||||
Los Angeles Unified School District GO, Series 2011 A-2, 5.00%, 7/1/21 | 10,070,000 | 12,050,467 | ||||
Los Angeles Wastewater System Rev., Series 2015 A, (Green Bonds), 5.00%, 6/1/27 | 2,400,000 | 2,961,672 | ||||
Metropolitan Water District of Southern California Rev., Series 2009 C, 5.00%, 7/1/35 | 2,300,000 | 2,593,365 | ||||
Metropolitan Water District of Southern California Rev., Series 2012 B-2, VRDN, 0.39%, 12/3/15 | 7,000,000 | 6,964,370 | ||||
Northern California Power Agency Rev., Series 2008 C, (Hydroelectric Project Number One), 5.00%, 7/1/19 (AGC) | 2,300,000 | 2,531,886 | ||||
Northern California Power Agency Rev., Series 2008 C, (Hydroelectric Project Number One), 5.00%, 7/1/20 (AGC) | 2,500,000 | 2,747,700 | ||||
Northern California Power Agency Rev., Series 2008 C, (Hydroelectric Project Number One), 5.00%, 7/1/21 (AGC) | 5,000,000 | 5,490,600 | ||||
Oakland Unified School District Alameda County GO, 5.00%, 8/1/20 | 5,005,000 | 5,672,867 | ||||
Oakland Unified School District Alameda County GO, Series 2013, (Election of 2012), 6.625%, 8/1/38 | 1,925,000 | 2,359,646 | ||||
Oakland Unified School District Alameda County GO, Series 2015 A, 5.00%, 8/1/21 | 1,100,000 | 1,262,459 | ||||
Oakland Unified School District Alameda County GO, Series 2015 A, 5.00%, 8/1/26 | 1,025,000 | 1,200,306 | ||||
Oakland Unified School District Alameda County GO, Series 2015 A, 5.00%, 8/1/27 | 1,295,000 | 1,505,438 | ||||
Oakland Unified School District Alameda County GO, Series 2015 A, 5.00%, 8/1/28 | 1,000,000 | 1,157,950 | ||||
Oakland Unified School District Alameda County GO, Series 2015 A, 5.00%, 8/1/34 | 1,000,000 | 1,126,480 | ||||
Oakland Unified School District Alameda County GO, Series 2015 A, 5.00%, 8/1/35 | 800,000 | 896,288 | ||||
Palomar Pomerado Health Care District COP, 6.00%, 11/1/41 | 5,735,000 | 6,094,986 | ||||
Plumas Unified School District GO, 5.25%, 8/1/20 (AGM) | 1,000,000 | 1,177,790 | ||||
Poway Unified School District GO, Capital Appreciation, (School Facilities Improvement), 0.00%, 8/1/41(2) | 4,610,000 | 1,580,124 | ||||
Regents of the University of California Rev., Series 2015 AO, 5.00%, 5/15/25 | 3,035,000 | 3,815,450 | ||||
Regents of the University of California Rev., Series 2015 AO, 5.00%, 5/15/26 | 2,555,000 | 3,172,850 | ||||
Riverside County Transportation Commission Rev., Series 2013 A, (Limited Tax), 5.25%, 6/1/39 | 2,665,000 | 3,102,113 | ||||
San Bernardino Community College District GO, Series 2008 A, (Election of 2002), 6.25%, 8/1/18, Prerefunded at 100% of Par(1) | 4,700,000 | 5,363,264 | ||||
San Buenaventura Rev., (Community Memorial Health System), 7.50%, 12/1/41 | 3,950,000 | 4,809,520 | ||||
San Diego County Water Authority Rev., Series 2011 S-1, (Subordinate Lien), 5.00%, 7/1/16 | 5,555,000 | 5,688,931 |
11
Principal Amount | Value | |||||
San Diego Public Facilities Financing Authority Lease Rev., Series 2015 A, (Capital Improvement Projects), 5.00%, 10/15/44 | $ | 2,470,000 | $ | 2,774,798 | ||
San Diego Public Facilities Financing Water Authority Rev., Series 2010 A, 5.00%, 8/1/22 | 2,000,000 | 2,329,060 | ||||
San Diego Public Facilities Financing Water Authority Rev., Series 2010 A, 5.00%, 8/1/23 | 3,000,000 | 3,484,980 | ||||
San Francisco City and County Airports Commission Rev., Series 2008 34-F, 5.00%, 5/1/17 (AGC) | 4,140,000 | 4,405,043 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., Series 2014 A, (Senior Lien), 5.00%, 1/15/29 | 5,900,000 | 6,539,796 | ||||
San Marcos Public Facilities Authority Tax Allocation Rev., Series 2006 A, (Project Area No. 3), 5.00%, 8/1/16, Prerefunded at 100% of Par (Ambac)(1) | 1,525,000 | 1,573,022 | ||||
Southern California Public Power Authority Rev., Series 2008 A, (Southern Transmission), 5.00%, 7/1/22 | 2,875,000 | 3,175,409 | ||||
Successor Agency to the Richmond County Redevelopment Agency Tax Allocation Rev., Series 2014 A, 4.00%, 9/1/16 (BAM) | 630,000 | 645,863 | ||||
Successor Agency to the Richmond County Redevelopment Agency Tax Allocation Rev., Series 2014 A, 4.00%, 9/1/17 (BAM) | 395,000 | 415,149 | ||||
Successor Agency to the Richmond County Redevelopment Agency Tax Allocation Rev., Series 2014 A, 4.00%, 9/1/18 (BAM) | 490,000 | 525,001 | ||||
Tuolumne Wind Project Authority Rev., Series 2009 A, 5.625%, 1/1/29 | 2,800,000 | 3,162,404 | ||||
Twin Rivers Unified School District COP, (School Facilities Bridge Funding Program), VRDN, 3.20%, 6/1/20 (AGM) | 6,250,000 | 6,258,500 | ||||
579,583,239 | ||||||
Colorado — 2.0% | ||||||
Aurora Hospital Rev., (Children's Hospital Association), 5.00%, 12/1/40 | 1,250,000 | 1,355,663 | ||||
Colorado Department of Transportation Rev., (Transportation Revenue Anticipation Notes), 5.00%, 12/15/16 | 5,000,000 | 5,239,000 | ||||
Colorado Health Facilities Authority Rev., Series 2015, (Valley View Hospital Association), 5.00%, 5/15/40(3) | 1,000,000 | 1,100,630 | ||||
Colorado Health Facilities Authority Rev., Series 2015, (Valley View Hospital Association), 5.00%, 5/15/45(3) | 920,000 | 1,007,980 | ||||
Colorado Health Facilities Authority Rev., Series 2006 B, (Longmont Unified Hospital), 5.00%, 12/1/20 (AGC) | 1,000,000 | 1,036,590 | ||||
Colorado Health Facilities Authority Rev., Series 2008 D-1, (Catholic Health Initiatives), 6.00%, 10/1/23 | 1,500,000 | 1,684,320 | ||||
Colorado Health Facilities Authority Rev., Series 2015 A, (Covenant Retirement Communities, Inc.), 5.00%, 12/1/35 | 1,000,000 | 1,075,540 | ||||
Colorado Water Resources & Power Development Authority Rev., Series 2000 A, 6.25%, 9/1/16 | 15,000 | 15,077 | ||||
Denver City and County Airport Rev., Series 2010 A, 5.00%, 11/15/21 | 2,500,000 | 2,879,300 | ||||
Denver City and County Airport Rev., Series 2013 B, 5.00%, 11/15/43 | 7,400,000 | 8,246,708 | ||||
E-470 Public Highway Authority Rev., Series 2014 A, VRDN, 1.19%, 12/3/15 | 8,650,000 | 8,622,752 | ||||
Regional Transportation District COP, Series 2010 A, 5.50%, 6/1/21 | 2,000,000 | 2,333,780 | ||||
Regional Transportation District Private Activity Rev., (Denver Transit Partners), 5.25%, 7/15/19 | 3,600,000 | 4,064,292 | ||||
Regional Transportation District Private Activity Rev., (Denver Transit Partners), 5.25%, 1/15/20 | 4,835,000 | 5,479,747 | ||||
Regional Transportation District Private Activity Rev., (Denver Transit Partners), 5.00%, 7/15/20 | 2,895,000 | 3,279,514 | ||||
Regional Transportation District Private Activity Rev., (Denver Transit Partners), 5.00%, 1/15/21 | 1,400,000 | 1,572,760 |
12
Principal Amount | Value | |||||
Regional Transportation District Private Activity Rev., (Denver Transit Partners), 5.00%, 7/15/21 | $ | 1,400,000 | $ | 1,566,222 | ||
Regional Transportation District Private Activity Rev., (Denver Transit Partners), 5.00%, 1/15/22 | 1,400,000 | 1,554,518 | ||||
Regional Transportation District Private Activity Rev., (Denver Transit Partners), 5.00%, 7/15/22 | 1,500,000 | 1,665,555 | ||||
Regional Transportation District Private Activity Rev., (Denver Transit Partners), 6.00%, 1/15/41 | 1,000,000 | 1,124,570 | ||||
Regional Transportation District Rev., Series 2012 A, (Fastracks Project), 5.00%, 11/1/25 | 9,800,000 | 11,744,516 | ||||
University of Colorado Enterprise System Rev., Series 2009 A, 5.25%, 6/1/19, Prerefunded at 100% of Par(1) | 1,200,000 | 1,370,064 | ||||
68,019,098 | ||||||
Connecticut — 1.8% | ||||||
Connecticut GO, Series 2009 A, 5.00%, 1/1/16 | 8,375,000 | 8,410,175 | ||||
Connecticut GO, Series 2012 A, VRDN, 0.54%, 12/3/15 | 4,300,000 | 4,305,590 | ||||
Connecticut GO, Series 2012 A, VRDN, 0.69%, 12/3/15 | 4,000,000 | 4,011,520 | ||||
Connecticut Health & Educational Facilities Authority Rev., Series 1999 G, (Ascension Health Center), VRDN, 1.55%, 2/1/17 | 3,000,000 | 3,027,810 | ||||
Connecticut Health & Educational Facilities Authority Rev., Series 2007 I, (Quinnipiac University), 5.00%, 7/1/16 (NATL-RE) | 2,660,000 | 2,731,554 | ||||
Connecticut Health & Educational Facilities Authority Rev., Series 2010 A-3, (Yale University), VRDN, 0.875%, 2/8/18 | 17,900,000 | 17,887,112 | ||||
Connecticut Special Tax Obligation Rev., Series 2015 A, 5.00%, 8/1/28 | 1,970,000 | 2,372,018 | ||||
Connecticut State Health & Educational Facility Authority Rev., Series 2015 A, (Yale University), VRDN, 1.375%, 7/11/18 | 7,500,000 | 7,586,925 | ||||
New Haven GO, Series 2014 B, 5.00%, 8/1/23 (AGM) | 10,000,000 | 11,794,600 | ||||
62,127,304 | ||||||
District of Columbia — 1.3% | ||||||
District of Columbia GO, Series 2015 A, 5.00%, 6/1/20 | 3,000,000 | 3,490,980 | ||||
District of Columbia GO, Series 2015 A, 5.00%, 6/1/22 | 5,000,000 | 6,031,150 | ||||
District of Columbia Rev., Series 2010 A, (Income Tax Secured), 5.00%, 12/1/19 | 5,000,000 | 5,751,950 | ||||
District of Columbia Rev., Series 2012 A, (Income Tax Secured), 5.00%, 12/1/16 | 1,200,000 | 1,256,112 | ||||
District of Columbia Rev., Series 2012 A, (Income Tax Secured), 5.00%, 12/1/17 | 5,000,000 | 5,423,700 | ||||
District of Columbia Rev., Series 2012 C, (Income Tax Secured), 4.00%, 12/1/15 | 4,500,000 | 4,500,495 | ||||
District of Columbia Water & Sewer Authority Public Utility Rev., Series 2008 A, (Subordinated Lien), 5.00%, 10/1/34 (AGC) | 1,200,000 | 1,305,768 | ||||
District of Columbia Water & Sewer Authority Public Utility Rev., Series 2015 B, (Subordinate Lien), 5.00%, 10/1/28 | 4,710,000 | 5,713,842 | ||||
Metropolitan Washington Airports Authority Rev., Series 2009 A, (First Senior Lien), 5.00%, 10/1/39 | 5,000,000 | 5,529,150 | ||||
Washington Metropolitan Area Transit Authority Rev., Series 2009 A, 5.00%, 7/1/17 | 4,600,000 | 4,912,202 | ||||
43,915,349 | ||||||
Florida — 6.3% | ||||||
Broward County Airport System Rev., Series 2012 Q-1, 5.00%, 10/1/24 | 2,650,000 | 3,118,467 | ||||
Broward County Airport System Rev., Series 2012 Q-1, 5.00%, 10/1/25 | 1,000,000 | 1,163,850 | ||||
Broward County Airport System Rev., Series 2012 Q-1, 5.00%, 10/1/26 | 1,000,000 | 1,153,280 | ||||
Broward County School Board COP, Series 2012 A, 5.00%, 7/1/26 | 11,800,000 | 13,504,038 |
13
Principal Amount | Value | |||||
Citizens Property Insurance Corp. Rev., Series 2009 A-1, (Senior Secured), 5.50%, 6/1/16 (AGC) | $ | 9,450,000 | $ | 9,694,188 | ||
Citizens Property Insurance Corp. Rev., Series 2009 A-1, (Senior Secured), 6.00%, 6/1/17 | 2,500,000 | 2,690,600 | ||||
Citizens Property Insurance Corp. Rev., Series 2011 A-1, (Senior Secured), 5.00%, 6/1/16 | 3,000,000 | 3,069,060 | ||||
Citizens Property Insurance Corp. Rev., Series 2011 A-1, (Senior Secured), 5.00%, 6/1/18 | 4,440,000 | 4,855,318 | ||||
Citizens Property Insurance Corp. Rev., Series 2012 A-1, (Senior Secured), 5.00%, 6/1/20 | 6,050,000 | 6,950,179 | ||||
Escambia County Rev., Series 1997, (Gulf Power Co.),VRDN, 2.10%, 4/11/19 | 1,500,000 | 1,521,345 | ||||
Florida GO, Series 2015 A, 5.00%, 7/1/24 | 10,000,000 | 12,364,800 | ||||
Florida Municipal Power Agency Rev., Series 2009 A, (All Requirements Power), 5.25%, 10/1/20 | 2,000,000 | 2,299,100 | ||||
Florida Municipal Power Agency Rev., Series 2009 A, (All Requirements Power), 5.25%, 10/1/21 | 3,470,000 | 3,974,850 | ||||
Florida State Board of Education GO, Series 2013 A, 5.00%, 6/1/22 | 10,000,000 | 12,062,300 | ||||
Florida's Turnpike Enterprise Rev., Series 2015 B, (Department of Transportation), 5.00%, 7/1/27 | 7,780,000 | 9,428,738 | ||||
Halifax Hospital Medical Center Rev., Series 2006 A, 5.25%, 6/1/16, Prerefunded at 100% of Par(1) | 410,000 | 420,000 | ||||
Halifax Hospital Medical Center Rev., Series 2006 A, 5.25%, 6/1/16 | 1,000,000 | 1,023,740 | ||||
Halifax Hospital Medical Center Rev., Series 2006 A, 5.25%, 6/1/18 | 165,000 | 168,354 | ||||
Halifax Hospital Medical Center Rev., Series 2006 B-1, 5.50%, 6/1/38 (AGM) | 1,000,000 | 1,078,920 | ||||
Halifax Hospital Medical Center Rev., Series 2006 B-2, 5.375%, 6/1/31 (AGM) | 2,000,000 | 2,156,860 | ||||
JEA Electric System Rev., Series 2013 A, 5.00%, 10/1/17 | 1,810,000 | 1,950,854 | ||||
JEA Electric System Rev., Series 2013 A, 5.00%, 10/1/21 | 3,115,000 | 3,711,896 | ||||
JEA Electric System Rev., Series 2013 A, 5.00%, 10/1/22 | 1,750,000 | 2,116,783 | ||||
JEA Electric System Rev., Series 2013 A, 5.00%, 10/1/23 | 1,500,000 | 1,810,890 | ||||
Lee County School Board COP, Series 2012 B, 5.00%, 8/1/17 | 3,170,000 | 3,393,517 | ||||
Lee County Transportation Facilities Rev., 5.00%, 10/1/26 (AGM) | 2,250,000 | 2,669,378 | ||||
Lee County Transportation Facilities Rev., 5.00%, 10/1/27 (AGM) | 2,550,000 | 3,000,559 | ||||
Miami-Dade County Aviation Department Rev., Series 2007 D, (Miami International Airport), 5.25%, 10/1/17, Prerefunded at 100% of Par (AGM)(1) | 4,650,000 | 5,036,136 | ||||
Miami-Dade County Aviation Department Rev., Series 2010 B, 5.00%, 10/1/41 | 3,000,000 | 3,234,450 | ||||
Miami-Dade County Aviation Department Rev., Series 2014 B, 5.00%, 10/1/37 | 2,450,000 | 2,776,903 | ||||
Miami-Dade County Expressway Authority Rev., Series 2014 A, 5.00%, 7/1/29 | 800,000 | 926,200 | ||||
Miami-Dade County Expressway Authority Rev., Series 2014 A, 5.00%, 7/1/30 | 1,560,000 | 1,795,856 | ||||
Miami-Dade County Expressway Authority Rev., Series 2014 A, 5.00%, 7/1/31 | 1,000,000 | 1,148,740 | ||||
Miami-Dade County Expressway Authority Rev., Series 2014 B, 5.00%, 7/1/26 | 2,000,000 | 2,369,760 | ||||
Miami-Dade County Expressway Authority Rev., Series 2014 B, 5.00%, 7/1/27 | 1,500,000 | 1,764,060 | ||||
Miami-Dade County Expressway Authority Rev., Series 2014 B, 5.00%, 7/1/30 | 1,835,000 | 2,116,948 |
14
Principal Amount | Value | |||||
Miami-Dade County Expressway Authority Rev., Series 2014 B, 5.00%, 7/1/31 | $ | 1,300,000 | $ | 1,492,309 | ||
Miami-Dade County Water & Sewer Rev., Series 2013 A, 5.00%, 10/1/42 | 9,335,000 | 10,413,566 | ||||
Orange County School Board COP, Series 2012 B, 5.00%, 8/1/26 | 8,000,000 | 9,307,200 | ||||
Orange County School Board COP, Series 2012 B, 5.00%, 8/1/27 | 6,500,000 | 7,531,680 | ||||
Orlando & Orange County Expressway Authority Rev., Series 2010 A, 5.00%, 7/1/40 | 3,000,000 | 3,361,020 | ||||
Orlando Utilities Commission System Rev., Series 2009 B, 5.00%, 10/1/33 | 2,000,000 | 2,222,960 | ||||
Orlando Utilities Commission System Rev., Series 2011 C, 5.00%, 10/1/19 | 1,500,000 | 1,715,160 | ||||
Orlando Utilities Commission System Rev., Series 2011 C, 5.00%, 10/1/20 | 5,000,000 | 5,852,150 | ||||
Orlando Utilities Commission System Rev., Series 2011 C, 5.00%, 10/1/21 | 4,745,000 | 5,656,420 | ||||
Orlando Utilities Commission System Rev., Series 2011 C, 5.00%, 10/1/22 | 1,750,000 | 2,121,175 | ||||
Orlando Utilities Commission Water & Electric Rev., Series 1989 D, 6.75%, 10/1/17(1) | 335,000 | 360,071 | ||||
Palm Beach County Health Facilities Authority Rev., Series 2010 A, (Bethesda Healthcare System), 5.25%, 7/1/40 (AGM) | 5,850,000 | 6,449,449 | ||||
Palm Beach County School Board COP, Series 2011 A, VRDN, 5.00%, 8/1/16, Prerefunded at 100% of Par(1) | 7,000,000 | 7,218,050 | ||||
South Lake County Hospital District Rev., Series 2010 A, (South Lake Hospital), 6.25%, 4/1/39 | 3,250,000 | 3,674,385 | ||||
St. Petersburg Health Facilities Authority Rev., Series 2009 A, (All Children's Health Facilities), 6.50%, 11/15/19, Prerefunded at 100% of Par(1) | 4,700,000 | 5,675,861 | ||||
Sunrise Florida Utilities System Rev., 5.20%, 10/1/20, Prerefunded at 100% of Par (Ambac)(1) | 430,000 | 495,807 | ||||
Sunrise Florida Utilities System Rev., 5.20%, 10/1/22 (Ambac) | 570,000 | 628,106 | ||||
Tampa Bay Water Rev., Series 2011 A, 5.00%, 10/1/16(1) | 1,865,000 | 1,936,206 | ||||
Tampa Bay Water Rev., Series 2011 A, 5.00%, 10/1/16(1) | 1,730,000 | 1,796,051 | ||||
Tampa Bay Water Rev., Series 2011 A, 5.00%, 10/1/16 | 5,000 | 5,195 | ||||
Tampa Bay Water Rev., Series 2011 A, 5.00%, 10/1/17(1) | 1,555,000 | 1,676,306 | ||||
Tampa Bay Water Rev., Series 2011 A, 5.00%, 10/1/17(1) | 1,440,000 | 1,552,334 | ||||
Tampa Bay Water Rev., Series 2011 A, 5.00%, 10/1/17 | 5,000 | 5,387 | ||||
Tampa Guaranteed Entitlement Rev., 6.00%, 10/1/18 (Ambac) | 145,000 | 152,933 | ||||
Tampa Water & Sewer Rev., 6.00%, 10/1/17 (AGM) | 1,000,000 | 1,096,120 | ||||
214,916,818 | ||||||
Georgia — 1.3% | ||||||
Athens-Clarke County Unified Government Water & Sewer Rev., 5.625%, 1/1/19, Prerefunded at 100% of Par(1) | 1,200,000 | 1,368,432 | ||||
Atlanta Rev., Series 2009 A, 6.00%, 11/1/19, Prerefunded at 100% of Par(1) | 5,000,000 | 5,937,600 | ||||
Atlanta Rev., Series 2009 A, 6.00%, 11/1/19, Prerefunded at 100% of Par(1) | 3,000,000 | 3,562,560 | ||||
City of Atlanta Water & Wastewater Rev., 5.00%, 11/1/27 | 2,000,000 | 2,406,400 | ||||
Georgia GO, Series 2009 G, 5.00%, 11/1/16 | 2,000,000 | 2,085,720 | ||||
Georgia GO, Series 2009 I, 5.00%, 7/1/16 | 10,000,000 | 10,278,600 | ||||
Georgia Municipal Electric Authority Rev., Series 2008 D, (Project 1), 5.50%, 1/1/26 | 4,800,000 | 5,331,984 | ||||
Georgia Road & Tollway Authority Rev., Series 2008 A, (Federal Highway Grant Anticipation Bonds), 5.00%, 6/1/16 | 6,350,000 | 6,499,415 | ||||
Georgia Road & Tollway Authority Rev., Series 2009 A, (Federal Highway Grant Anticipation Bonds), 5.00%, 6/1/21 | 4,000,000 | 4,519,480 |
15
Principal Amount | Value | |||||
Marietta Development Authority Rev., (Life University, Inc.), 6.25%, 6/15/20 | $ | 600,000 | $ | 631,728 | ||
Private Colleges & Universities Authority Rev., Series 2009 B, (Emory University), 5.00%, 9/1/35 | 1,000,000 | 1,118,680 | ||||
Private Colleges & Universities Authority Rev., Series 2014, (Savannah College of Art & Design Project), 5.00%, 4/1/44 | 1,300,000 | 1,410,500 | ||||
45,151,099 | ||||||
Guam — 0.9% | ||||||
Guam Government Business Privilege Tax GO, Series 2011 A, 5.00%, 1/1/27 | 3,185,000 | 3,584,017 | ||||
Guam Government Business Privilege Tax GO, Series 2011 A, 5.25%, 1/1/36 | 2,000,000 | 2,204,120 | ||||
Guam Government Department of Education COP, Series 2010 A, (John F. Kennedy High School), 6.875%, 12/1/40 | 1,500,000 | 1,645,695 | ||||
Guam Government GO, Series 2009 A, 6.00%, 11/15/19 | 4,115,000 | 4,559,502 | ||||
Guam Government GO, Series 2009 A, 6.75%, 11/15/19, Prerefunded at 100% of Par(1) | 12,570,000 | 15,312,146 | ||||
Guam Power Authority Rev., Series 2012 A, 5.00%, 10/1/26 (AGM) | 2,000,000 | 2,353,220 | ||||
Guam Power Authority Rev., Series 2012 A, 5.00%, 10/1/27 (AGM) | 1,000,000 | 1,166,590 | ||||
30,825,290 | ||||||
Hawaii — 1.2% | ||||||
Hawaii GO, Series 2007 DJ, 5.00%, 4/1/17, Prerefunded at 100% of Par (Ambac)(1) | 5,000,000 | 5,291,950 | ||||
Hawaii GO, Series 2011 EA, 5.00%, 12/1/23 | 10,000,000 | 11,928,600 | ||||
Hawaii GO, Series 2014 EO, 5.00%, 8/1/23 | 6,000,000 | 7,325,940 | ||||
Hawaii Pacific Health Rev., Series 2010 A, 5.50%, 7/1/40 | 2,500,000 | 2,773,775 | ||||
Hawaii Pacific Health Special Purpose Rev., Series 2010 B, 5.75%, 7/1/40 | 800,000 | 899,784 | ||||
Honolulu City and County GO, Series 2009 A, 5.00%, 4/1/19, Prerefunded at 100% of Par(1) | 3,000,000 | 3,389,580 | ||||
Honolulu City and County GO, Series 2015 B, 5.00%, 10/1/25 | 3,000,000 | 3,758,820 | ||||
Honolulu City and County GO, Series 2015 C, 5.00%, 10/1/25 | 3,000,000 | 3,758,820 | ||||
Honolulu City and County Wastewater System Rev., Series 2012 A, (First Bond Resolution), 5.00%, 7/1/23 | 905,000 | 1,077,285 | ||||
40,204,554 | ||||||
Idaho — 0.1% | ||||||
Idaho Health Facilities Authority Rev., (St. Luke's Regional Medical Center), 5.00%, 7/1/35 (AGM) | 250,000 | 273,850 | ||||
Idaho Housing & Finance Association Rev., Series 2011 A, 5.00%, 7/15/29 | 3,000,000 | 3,391,200 | ||||
3,665,050 | ||||||
Illinois — 4.2% | ||||||
Chicago Midway Airport Rev., Series 2014 B, 5.00%, 1/1/19 | 800,000 | 891,048 | ||||
Chicago Midway Airport Rev., Series 2014 B, 5.00%, 1/1/21 | 800,000 | 926,408 | ||||
Chicago Midway Airport Rev., Series 2014 B, 5.00%, 1/1/22 | 600,000 | 703,404 | ||||
Chicago O'Hare International Airport Rev., Series 2005 B, 5.25%, 1/1/18 (NATL-RE) | 5,000,000 | 5,431,050 | ||||
Chicago O'Hare International Airport Rev., Series 2008 C, 4.00%, 1/1/17 (AGM) | 600,000 | 621,780 | ||||
Chicago O'Hare International Airport Rev., Series 2011 A, (Third Lien), 5.75%, 1/1/39 | 2,000,000 | 2,329,360 | ||||
Chicago O'Hare International Airport Rev., Series 2011 B, (Third Lien), 5.00%, 1/1/16 | 1,000,000 | 1,004,160 |
16
Principal Amount | Value | |||||
Chicago O'Hare International Airport Rev., Series 2011 B, (Third Lien), 5.00%, 1/1/22 | $ | 1,000,000 | $ | 1,149,600 | ||
Chicago O'Hare International Airport Rev., Series 2015 B, 5.00%, 1/1/23 | 1,455,000 | 1,723,026 | ||||
Chicago O'Hare International Airport Rev., Series 2015 B, 5.00%, 1/1/24 | 3,940,000 | 4,682,414 | ||||
Chicago O'Hare International Airport Rev., Series 2015 B, 5.00%, 1/1/29 | 9,000,000 | 10,344,870 | ||||
Chicago Wastewater Transmission Rev., Series 2014, (Second Lien), 5.00%, 1/1/29 | 1,100,000 | 1,207,987 | ||||
Chicago Wastewater Transmission Rev., Series 2014, (Second Lien), 5.00%, 1/1/31 | 1,000,000 | 1,085,740 | ||||
Chicago Wastewater Transmission Rev., Series 2014, (Second Lien), 5.00%, 1/1/32 | 1,000,000 | 1,082,110 | ||||
Chicago Wastewater Transmission Rev., Series 2014, (Second Lien), 5.00%, 1/1/39 | 2,200,000 | 2,355,342 | ||||
Chicago Wastewater Transmission Rev., Series 2008 C, (Second Lien), 5.00%, 1/1/34 | 725,000 | 787,234 | ||||
Chicago Wastewater Transmission Rev., Series 2008 C, (Second Lien), 5.00%, 1/1/35 | 725,000 | 784,921 | ||||
Chicago Wastewater Transmission Rev., Series 2008 C, (Second Lien), 5.00%, 1/1/39 | 1,405,000 | 1,514,435 | ||||
Chicago Waterworks Rev., (Second Lien), 5.00%, 11/1/39 | 2,520,000 | 2,693,754 | ||||
Illinois Educational Facilities Authority Rev., Series 2001 B-1, (University of Chicago), VRDN, 1.10%, 2/15/18 | 3,875,000 | 3,875,814 | ||||
Illinois Finance Authority Rev., Series 2008 A, (Prairie Power, Inc.), VRDN, 1.30%, 5/8/17 (GA: National Rural Utilities Cooperative Finance Corp.) | 1,915,000 | 1,916,245 | ||||
Illinois Finance Authority Rev., Series 2008 D, (Advocate Health Care Network), 6.25%, 11/1/18, Prerefunded at 100% of Par(1) | 5,000,000 | 5,750,500 | ||||
Illinois Finance Authority Rev., Series 2009 C, (Rush University Medical Center), 6.375%, 5/1/19, Prerefunded at 100% of Par(1) | 5,000,000 | 5,886,100 | ||||
Illinois Finance Authority Rev., Series 2009, (Central DuPage Health), 5.00%, 11/1/27 | 3,475,000 | 3,872,748 | ||||
Illinois Finance Authority Rev., Series 2010 A, (Provena Health), 5.25%, 5/1/16 | 1,000,000 | 1,015,660 | ||||
Illinois Finance Authority Rev., Series 2011 A, (Carle Foundation), 6.00%, 8/15/41 | 2,000,000 | 2,348,040 | ||||
Illinois Finance Authority Rev., Series 2015 B, (Advocate Health Care Network), 5.00%, 5/1/22 | 1,500,000 | 1,789,125 | ||||
Illinois Finance Authority Rev., Series 2015 B, (Rush University Medical Center), 5.00%, 11/15/29 | 5,000,000 | 5,824,850 | ||||
Illinois GO, 5.50%, 7/1/38 | 4,900,000 | 5,211,787 | ||||
Illinois GO, 5.00%, 2/1/39 | 3,000,000 | 3,103,500 | ||||
Illinois GO, 5.00%, 5/1/39 | 5,880,000 | 6,088,093 | ||||
Illinois Toll Highway Authority Rev., Series 2010 A-1, 5.00%, 1/1/25 | 5,000,000 | 5,623,300 | ||||
Illinois Toll Highway Authority Rev., Series 2014 B, (Senior Lien), 5.00%, 1/1/39 | 2,450,000 | 2,717,736 | ||||
Illinois Toll Highway Authority Rev., Series 2014 C, 5.00%, 1/1/36 | 15,000,000 | 16,924,650 | ||||
Railsplitter Tobacco Settlement Authority Rev., 5.00%, 6/1/17 | 6,000,000 | 6,347,460 | ||||
Railsplitter Tobacco Settlement Authority Rev., 5.25%, 6/1/21 | 10,000,000 | 11,655,500 | ||||
Regional Transportation Authority Rev., Series 1990 A, 7.20%, 11/1/20 (Ambac) | 550,000 | 636,125 | ||||
Southwestern Illinois Development Authority Rev., (Triad School District No. 2), 5.00%, 10/1/18 (NATL-RE) | 1,000,000 | 1,036,280 | ||||
Springfield Electric Rev., (Senior Lien), 5.00%, 3/1/20(3) | 1,000,000 | 1,134,880 | ||||
Springfield Electric Rev., (Senior Lien), 5.00%, 3/1/21(3) | 1,000,000 | 1,151,070 | ||||
Springfield Electric Rev., (Senior Lien), 5.00%, 3/1/22(3) | 1,750,000 | 2,034,935 | ||||
Springfield Electric Rev., (Senior Lien), 5.00%, 3/1/23(3) | 1,245,000 | 1,459,613 |
17
Principal Amount | Value | |||||
Springfield Electric Rev., (Senior Lien), 5.00%, 3/1/24(3) | $ | 1,750,000 | $ | 2,062,060 | ||
University of Illinois COP, Series 2006 A, (Academic Facilities), 5.00%, 3/15/16 (Ambac)(1) | 3,270,000 | 3,314,636 | ||||
144,099,350 | ||||||
Indiana — 1.6% | ||||||
Hamilton Southeastern Consolidated School Building Corp. Rev., (Hamilton County), 4.25%, 7/15/20 (AGM) | 1,000,000 | 1,035,270 | ||||
Indiana Bond Bank Rev., Series 2006 A, 5.00%, 8/1/17 (AGM) | 1,520,000 | 1,567,728 | ||||
Indiana Bond Bank Rev., Series 2006 A, 5.00%, 8/1/18 (AGM) | 1,600,000 | 1,650,096 | ||||
Indiana Bond Bank Rev., Series 2006 A, 5.00%, 8/1/19 (AGM) | 1,680,000 | 1,732,601 | ||||
Indiana Finance Authority Lease Rev., Series 2008 A-1, 5.00%, 11/1/16 | 5,000,000 | 5,206,550 | ||||
Indiana Finance Authority Rev., Series 2014 A, (Methodist Hospitals, Inc.), 5.00%, 9/15/16 | 1,055,000 | 1,088,085 | ||||
Indiana Finance Authority Rev., Series 2014 A, (Methodist Hospitals, Inc.), 5.00%, 9/15/20 | 1,000,000 | 1,128,820 | ||||
Indiana Finance Authority Rev., Series 2014 A, (Methodist Hospitals, Inc.), 5.00%, 9/15/22 | 1,300,000 | 1,491,074 | ||||
Indiana Finance Authority Rev., Series 2014 A, (Methodist Hospitals, Inc.), 5.00%, 9/15/24 | 1,000,000 | 1,150,880 | ||||
Indiana Finance Authority Rev., Series 2014 A, (Methodist Hospitals, Inc.), 5.00%, 9/15/25 | 1,150,000 | 1,309,907 | ||||
Indiana Finance Authority Rev., Series 2014 A, (Methodist Hospitals, Inc.), 5.00%, 9/15/27 | 1,250,000 | 1,402,100 | ||||
Indiana Finance Authority Rev., Series 2014 A, (Methodist Hospitals, Inc.), 5.00%, 9/15/29 | 1,465,000 | 1,624,729 | ||||
Indiana Finance Authority Rev., Series 2014 A, (Methodist Hospitals, Inc.), 5.00%, 9/15/31 | 1,250,000 | 1,377,350 | ||||
Indiana Finance Authority Rev., Series 2015 A, (Convention Center Expansion Project), 5.00%, 2/1/27 | 1,120,000 | 1,346,867 | ||||
Indiana Finance Authority Rev., Series 2015 A, (Convention Center Expansion Project), 5.00%, 2/1/28 | 2,005,000 | 2,392,386 | ||||
Indiana Finance Authority Rev., Series 2015 A, (Convention Center Expansion Project), 5.00%, 2/1/29 | 2,500,000 | 2,944,450 | ||||
Indiana Finance Authority Rev., Series 2015 A, (Stadium Project), 5.00%, 2/1/23 | 1,735,000 | 2,080,751 | ||||
Indiana Finance Authority Rev., Series 2015 A, (Stadium Project), 5.00%, 2/1/24 | 2,200,000 | 2,644,092 | ||||
Indiana Finance Authority Rev., Series 2015 A, (Stadium Project), 5.00%, 2/1/26 | 3,030,000 | 3,686,116 | ||||
Indiana Finance Authority Rev., Series 2015 A, (Stadium Project), 5.25%, 2/1/27 | 2,000,000 | 2,451,420 | ||||
Indiana Finance Authority Wastewater Utility Rev., Series 2011 A, (First Lien), 5.25%, 10/1/23 | 2,645,000 | 3,118,217 | ||||
Indiana Finance Authority Wastewater Utility Rev., Series 2011 A, (First Lien), 5.25%, 10/1/24 | 3,025,000 | 3,560,274 | ||||
Indiana Finance Authority Wastewater Utility Rev., Series 2011 A, (First Lien), 5.25%, 10/1/25 | 1,650,000 | 1,935,021 | ||||
Indiana University Rev., Series 2011 U, 5.00%, 8/1/16 | 1,000,000 | 1,031,720 | ||||
Indiana University Rev., Series 2011 U, 5.00%, 8/1/17 | 2,000,000 | 2,143,840 | ||||
Indiana University Rev., Series 2011 U, 5.00%, 8/1/19 | 4,200,000 | 4,788,210 | ||||
55,888,554 | ||||||
Iowa — 0.1% | ||||||
Iowa Finance Authority Health Facilities Rev., Series 2006 A, (Development Care Initiatives), 5.25%, 7/1/16 | 1,690,000 | 1,722,820 | ||||
Iowa Rev., Series 2009 A, (I-Jobs Program), 5.00%, 6/1/22 | 2,500,000 | 2,813,750 | ||||
4,536,570 |
18
Principal Amount | Value | |||||
Kansas — 0.1% | ||||||
Kansas State Department of Transportation Rev., Series 2009 A, 5.00%, 9/1/16 | $ | 4,500,000 | $ | 4,659,795 | ||
Kentucky — 0.8% | ||||||
Kentucky Asset / Liability Commission Agency Fund Rev., Series 2010 A, (Federal Highway Trust), 5.00%, 9/1/20 | 4,000,000 | 4,597,440 | ||||
Kentucky Economic Development Finance Authority Rev., Series 2009 A, (Baptist Healthcare System), 5.375%, 8/15/24 | 3,000,000 | 3,260,940 | ||||
Kentucky Economic Development Finance Authority Rev., Series 2009 A, (Baptist Healthcare System), 5.625%, 8/15/27 | 1,250,000 | 1,374,012 | ||||
Kentucky Public Transportation Infrastructure Authority Rev., Series 2013 A, (Downtown Crossing Project), 5.00%, 7/1/17 | 8,850,000 | 9,389,673 | ||||
Kentucky State Property & Buildings Commission Rev., (Project No. 82), 5.25%, 10/1/16 (AGM) | 4,600,000 | 4,786,392 | ||||
Kentucky Turnpike Authority Economic Development Road Rev., Series 2015 B, 5.00%, 7/1/19 | 1,000,000 | 1,131,850 | ||||
Kentucky Turnpike Authority Economic Development Road Rev., Series 2015 B, 5.00%, 7/1/20 | 1,500,000 | 1,735,800 | ||||
26,276,107 | ||||||
Louisiana — 0.9% | ||||||
Louisiana Offshore Terminal Authority Deepwater Port Rev., Series 1997 A, (LOOP LLC Project), VRDN, 0.01%, 12/1/15 (LOC: JPMorgan Chase Bank N.A.) | 6,050,000 | 6,050,000 | ||||
Louisiana Public Facilities Authority Rev., Series 2007 A, (Black & Gold Facilities), 5.00%, 7/1/22 (AGC) | 1,465,000 | 1,547,289 | ||||
New Orleans GO, 5.00%, 12/1/19 | 5,000,000 | 5,676,650 | ||||
New Orleans GO, 5.00%, 12/1/20 | 4,000,000 | 4,621,440 | ||||
New Orleans GO, 5.00%, 12/1/21 | 6,000,000 | 7,007,160 | ||||
New Orleans Sewerage Service Rev., 4.00%, 6/1/16 | 500,000 | 508,605 | ||||
New Orleans Sewerage Service Rev., 5.00%, 6/1/17 | 750,000 | 795,038 | ||||
New Orleans Sewerage Service Rev., 5.00%, 6/1/18 | 500,000 | 545,690 | ||||
New Orleans Sewerage Service Rev., 5.00%, 6/1/19 | 350,000 | 392,179 | ||||
New Orleans Sewerage Service Rev., 5.00%, 6/1/21 | 400,000 | 463,672 | ||||
New Orleans Sewerage Service Rev., 5.00%, 6/1/23 | 250,000 | 294,235 | ||||
New Orleans Sewerage Service Rev., 5.00%, 6/1/24 | 200,000 | 236,782 | ||||
Regional Transit Authority Sales Tax Rev., 5.00%, 12/1/17 (AGM) | 1,000,000 | 1,077,490 | ||||
Regional Transit Authority Sales Tax Rev., 5.00%, 12/1/19 (AGM) | 1,000,000 | 1,137,770 | ||||
Regional Transit Authority Sales Tax Rev., 5.00%, 12/1/20 (AGM) | 1,250,000 | 1,445,612 | ||||
31,799,612 | ||||||
Maine — 0.1% | ||||||
Portland Airport Rev., 5.00%, 1/1/40 (AGM) | 1,795,000 | 1,914,242 | ||||
Maryland — 0.9% | ||||||
Maryland Economic Development Corp. Rev., Series 2010 A, (Transportation Facilities), 5.75%, 6/1/35 | 1,000,000 | 1,092,850 | ||||
Maryland GO, Series 2009 B, 5.25%, 8/15/18 | 4,000,000 | 4,467,080 | ||||
Maryland GO, Series 2009 C, 5.00%, 11/1/19 | 5,055,000 | 5,816,131 | ||||
Maryland GO, Series 2011 B, 5.00%, 8/1/19 | 5,000,000 | 5,712,550 | ||||
Maryland GO, Series 2013 A, 5.00%, 3/1/21, Prerefunded at 100% of Par(1) | 10,000,000 | 11,836,700 | ||||
Maryland Health & Higher Educational Facilities Authority Rev., Series 2008 A, (Johns Hopkins University), 5.25%, 7/1/38 | 1,645,000 | 1,794,531 | ||||
30,719,842 |
19
Principal Amount | Value | |||||
Massachusetts — 3.9% | ||||||
Massachusetts Bay Transportation Authority Rev., Series 2008 A, 5.25%, 7/1/18, Prerefunded at 100% of Par(1) | $ | 955,000 | $ | 1,060,824 | ||
Massachusetts Bay Transportation Authority Rev., Series 2008 A, 5.25%, 7/1/34 | 2,345,000 | 2,583,275 | ||||
Massachusetts Development Finance Agency Rev., Series 2007 C, (Wheelock College), 5.00%, 10/1/17 | 735,000 | 770,015 | ||||
Massachusetts GO, Series 2011 A, (Consolidated Loan), 5.00%, 4/1/28 | 10,000,000 | 11,590,800 | ||||
Massachusetts GO, Series 2011 B, (Consolidated Loan), 5.00%, 8/1/22 | 9,635,000 | 11,187,102 | ||||
Massachusetts GO, Series 2013 E, (Consolidated Loan), 5.00%, 8/1/24 | 10,000,000 | 11,930,300 | ||||
Massachusetts GO, Series 2015 A, 5.00%, 7/1/27 | 10,000,000 | 12,639,400 | ||||
Massachusetts Health & Educational Facilities Authority Rev., Series 2009 A, (Harvard University), 5.50%, 11/15/36 | 6,800,000 | 7,712,492 | ||||
Massachusetts Health & Educational Facilities Authority Rev., Series 2009 O, (Massachusetts Institute of Technology), 5.75%, 7/1/18, Prerefunded at 100% of Par(1) | 10,000,000 | 11,238,300 | ||||
Massachusetts Health & Educational Facilities Authority Rev., Series 2010 C, (Massachusetts Eye and Ear Infirmary), 5.375%, 7/1/35 | 2,000,000 | 2,171,240 | ||||
Massachusetts Health & Educational Facilities Authority Rev., Series 2010 G, (Umass Memorial), 5.00%, 7/1/20 | 1,500,000 | 1,659,465 | ||||
Massachusetts Health & Educational Facilities Authority Rev., Series 2010 G, (Umass Memorial), 5.00%, 7/1/21 | 1,050,000 | 1,164,755 | ||||
Massachusetts Port Authority Rev., Series 2012 B, 4.00%, 7/1/18 | 1,305,000 | 1,407,129 | ||||
Massachusetts Port Authority Rev., Series 2012 B, 5.00%, 7/1/19 | 250,000 | 284,000 | ||||
Massachusetts Port Authority Rev., Series 2012 B, 4.00%, 7/1/22 | 2,655,000 | 3,019,771 | ||||
Massachusetts School Building Authority Sales Tax Rev., Series 2011 B, (Senior Lien), 5.00%, 10/15/32 | 6,630,000 | 7,748,879 | ||||
Massachusetts School Building Authority Sales Tax Rev., Series 2012 A, (Senior Lien), 5.00%, 8/15/30 | 7,750,000 | 9,154,765 | ||||
Massachusetts School Building Authority Sales Tax Rev., Series 2012 B, (Senior Lien), 5.00%, 8/15/30 | 3,575,000 | 4,235,267 | ||||
Massachusetts State Department of Transportation Metropolitan Highway Rev., Series 2010 B, (Metropolitan Senior), 5.00%, 1/1/23 | 1,000,000 | 1,126,770 | ||||
Massachusetts State Department of Transportation Metropolitan Highway Rev., Series 2010 B, (Metropolitan Senior), 5.00%, 1/1/24 | 6,000,000 | 6,760,620 | ||||
Massachusetts State Transportation Fund Rev., Series 2013 A, (Accelerated Bridge Program), 5.00%, 6/1/25 | 7,740,000 | 9,027,007 | ||||
Massachusetts State Transportation Fund Rev., Series 2013 A, (Accelerated Bridge Program), 5.00%, 6/1/28 | 1,000,000 | 1,162,490 | ||||
Massachusetts State Transportation Fund Rev., Series 2013 A, (Accelerated Bridge Program), 5.00%, 6/1/29 | 1,755,000 | 2,053,736 | ||||
Massachusetts Water Resources Authority Rev., Series 2011 B, (Charlestown Navy Yard), 5.00%, 8/1/23 | 1,000,000 | 1,194,130 | ||||
Massachusetts Water Resources Authority Rev., Series 2011 B, (Charlestown Navy Yard), 5.00%, 8/1/24 | 1,815,000 | 2,165,349 | ||||
Massachusetts Water Resources Authority Rev., Series 2011 B, (Charlestown Navy Yard), 5.00%, 8/1/25 | 4,215,000 | 5,017,452 | ||||
Massachusetts Water Resources Authority Rev., Series 2011 B, (Charlestown Navy Yard), 5.00%, 8/1/26 | 1,000,000 | 1,187,280 | ||||
131,252,613 | ||||||
Michigan — 2.6% | ||||||
Detroit City School District GO, Series 2012 A, (Building & Site), 5.00%, 5/1/28 (Q-SBLF) | 6,500,000 | 7,211,165 | ||||
Detroit City School District GO, Series 2012 A, (Building & Site), 5.00%, 5/1/31 (Q-SBLF) | 4,750,000 | 5,213,600 |
20
Principal Amount | Value | |||||
Detroit Water and Sewerage Department Disposal Sewage System Rev., Series 2012 A, (Senior Lien), 5.25%, 7/1/39 | $ | 19,825,000 | $ | 21,617,973 | ||
Detroit Water Supply System Rev., Series 2011 A, (Senior Lien), 5.00%, 7/1/17 | 1,300,000 | 1,367,470 | ||||
Detroit Water Supply System Rev., Series 2011 A, (Senior Lien), 5.00%, 7/1/36 | 1,000,000 | 1,065,550 | ||||
Kalamazoo Public Schools GO, (Building & Site), 5.25%, 5/1/16 (AGM) | 1,545,000 | 1,576,410 | ||||
Lansing Board of Water & Light Utility System Rev., Series 2011 A, 5.00%, 7/1/27 | 5,000,000 | 5,794,850 | ||||
Michigan Finance Authority Rev., Series 2014 C-6, (Detroit Water & Sewerage Department), 5.00%, 7/1/33 | 2,000,000 | 2,188,160 | ||||
Michigan Finance Authority Rev., Series 2014 D-4, (Detroit Water & Sewerage Department), 5.00%, 7/1/34 | 1,500,000 | 1,635,360 | ||||
Michigan Finance Authority Rev., Series 2014 H-1, (Detroit Regional Convention Facility Authority Local Project Bonds), 5.00%, 10/1/27 | 3,030,000 | 3,525,314 | ||||
Michigan Finance Authority Rev., Series 2014 H-1, (Detroit Regional Convention Facility Authority Local Project Bonds), 5.00%, 10/1/28 | 3,465,000 | 3,993,447 | ||||
Michigan Finance Authority Rev., Series 2014, (MidMichigan Health Credit Group), 5.00%, 6/1/25 | 1,000,000 | 1,175,020 | ||||
Michigan Finance Authority Rev., Series 2014, (MidMichigan Health Credit Group), 5.00%, 6/1/27 | 1,400,000 | 1,608,782 | ||||
Michigan Finance Authority Rev., Series 2014, (MidMichigan Health Credit Group), 5.00%, 6/1/28 | 1,250,000 | 1,422,400 | ||||
Michigan Finance Authority Rev., Series 2014, (MidMichigan Health Credit Group), 5.00%, 6/1/29 | 1,565,000 | 1,764,459 | ||||
Michigan Finance Authority Rev., Series 2015 A, (Detroit School District), 5.00%, 5/1/18 (Q-SBLF) | 2,000,000 | 2,175,840 | ||||
Michigan State Building Authority Rev., Series 2009 I, (Facilities Program), 5.25%, 10/15/20 | 4,000,000 | 4,547,320 | ||||
Michigan State Hospital Finance Authority Rev., Series 2012 A, (Mclaren Health Care Corporation), 5.00%, 6/1/16 | 1,360,000 | 1,391,647 | ||||
Michigan State Hospital Finance Authority Rev., Series 2012 A, (Mclaren Health Care Corporation), 5.00%, 6/1/17 | 1,600,000 | 1,700,880 | ||||
Michigan State Hospital Finance Authority Rev., Series 2012 A-4, (Ascension Health Credit Group), VRDN, 1.625%, 11/1/19 | 7,495,000 | 7,511,189 | ||||
Wayne County Airport Authority Rev., Series 2007, (Detroit Metropolitan Wayne County Airport), 5.00%, 12/1/18 (NATL-RE) | 3,000,000 | 3,242,340 | ||||
Wayne County Airport Authority Rev., Series 2007, (Detroit Metropolitan Wayne County Airport), 5.00%, 12/1/19 (NATL-RE) | 2,000,000 | 2,158,240 | ||||
Wayne County Airport Authority Rev., Series 2014 B, (Detroit Metropolitan Wayne County Airport), 5.00%, 12/1/30 | 1,000,000 | 1,134,810 | ||||
Wayne County Airport Authority Rev., Series 2014 B, (Detroit Metropolitan Wayne County Airport), 5.00%, 12/1/31 | 650,000 | 735,462 | ||||
Wayne County Airport Authority Rev., Series 2014 B, (Detroit Metropolitan Wayne County Airport), 5.00%, 12/1/32 | 1,175,000 | 1,324,613 | ||||
Wayne County Airport Authority Rev., Series 2014 B, (Detroit Metropolitan Wayne County Airport), 5.00%, 12/1/34 | 1,150,000 | 1,288,828 | ||||
88,371,129 | ||||||
Minnesota — 0.6% | ||||||
Minnesota GO, 5.00%, 11/1/16 | 6,455,000 | 6,731,661 | ||||
Minnesota GO, Series 2010 D, 5.00%, 8/1/19 | 5,000,000 | 5,710,600 | ||||
Rochester Health Care Facilities Rev., Series 2011 C, (Mayo Clinic), VRDN, 4.50%, 11/15/21 | 6,000,000 | 6,936,240 | ||||
19,378,501 |
21
Principal Amount | Value | |||||
Mississippi — 0.9% | ||||||
Mississippi Development Bank Special Obligation Rev., Series 2006 A, (Biloxi, Mississippi), 5.00%, 11/1/16 (Ambac) | $ | 1,645,000 | $ | 1,706,128 | ||
Mississippi Development Bank Special Obligation Rev., Series 2006 A, (Municipal Energy Agency Power Supply), 5.00%, 3/1/17 (XLCA) | 1,000,000 | 1,009,530 | ||||
Mississippi Development Bank Special Obligation Rev., Series 2007 A, (Mississippi Development Bank), 5.00%, 7/1/19 (Ambac) | 4,160,000 | 4,654,083 | ||||
Mississippi Development Bank Special Obligation Rev., Series 2010 D, (Department of Corrections), 5.25%, 8/1/27 | 5,000,000 | 5,692,300 | ||||
Mississippi Development Bank Special Obligation Rev., Series 2013, (Jackson Water and Sewer System Project), 6.875%, 12/1/40 (AGM) | 4,150,000 | 5,323,205 | ||||
Mississippi GO, Series 2013 B, 5.00%, 12/1/27 | 5,000,000 | 5,951,450 | ||||
Mississippi GO, Series 2015 C, 5.00%, 10/1/18 | 3,625,000 | 4,038,032 | ||||
University of Southern Mississippi Educational Building Co. Rev., Series 2006 A, 5.00%, 3/1/16, Prerefunded at 100% of Par (AGM)(1) | 1,940,000 | 1,963,474 | ||||
University of Southern Mississippi Educational Building Co. Rev., Series 2006 A, 5.00%, 3/1/16, Prerefunded at 100% of Par (AGM)(1) | 1,195,000 | 1,209,460 | ||||
31,547,662 | ||||||
Missouri — 0.3% | ||||||
Jackson County Public Building Corp. Rev., Series 2006 A, (Capital Improvements), 5.00%, 12/1/15 (NATL-RE) | 1,425,000 | 1,425,185 | ||||
Missouri Health & Educational Facilities Authority Rev., Series 2008 A, (Washington University), 5.375%, 3/15/39 | 2,000,000 | 2,173,600 | ||||
Missouri Highway & Transportation Commission Rev., Series 2010 A, 5.00%, 5/1/18 | 2,700,000 | 2,965,950 | ||||
Missouri Joint Municipal Electric Utility Commission Rev., Series 2006, (Plum Point), 5.00%, 1/1/16 (NATL-RE) | 3,145,000 | 3,156,637 | ||||
9,721,372 | ||||||
Nebraska — 0.4% | ||||||
Central Plains Energy Project Rev., 5.00%, 9/1/22 | 2,500,000 | 2,899,525 | ||||
Douglas County Hospital Authority No. 3 Rev., (Nebraska Methodist Health System), 5.00%, 11/1/45 | 3,900,000 | 4,288,713 | ||||
Nebraska Public Power District Rev., Series 2008 B, 5.00%, 1/1/18, Prerefunded at 100% of Par(1) | 2,500,000 | 2,713,250 | ||||
Omaha Public Power District Electric System Rev., Series 2007 A, 5.00%, 2/1/17, Prerefunded at 100% of Par(1) | 3,000,000 | 3,155,490 | ||||
13,056,978 | ||||||
Nevada — 0.7% | ||||||
Las Vegas Valley Water District GO, Series 2015 A, (Limited Tax), 5.00%, 6/1/22 | 10,000,000 | 12,014,400 | ||||
Nevada GO, Series 2013 D-1, 5.00%, 3/1/22 | 4,800,000 | 5,750,544 | ||||
Nevada GO, Series 2015 D, (Capital Improvements), 5.00%, 4/1/27 | 5,710,000 | 6,926,401 | ||||
24,691,345 | ||||||
New Hampshire† | ||||||
New Hampshire Health & Education Facilities Authority Rev., Series 2004 A, (Kendal at Hanover), 5.00%, 10/1/18 | 890,000 | 900,484 | ||||
New Jersey — 3.5% | ||||||
New Jersey Economic Development Authority Rev., Series 2005 K, (School Facilities Construction), 5.25%, 12/15/20 (Ambac) | 5,000,000 | 5,502,500 | ||||
New Jersey Economic Development Authority Rev., Series 2008 Y, (School Facilities Construction), 5.00%, 9/1/18, Prerefunded at 100% of Par(1) | 110,000 | 121,911 | ||||
New Jersey Economic Development Authority Rev., Series 2014 PP, (School Facilities Construction), 5.00%, 6/15/26 | 5,000,000 | 5,358,050 |
22
Principal Amount | Value | |||||
New Jersey Economic Development Authority Rev., Series 2014 UU, (School Facilities Construction), 5.00%, 6/15/23 | $ | 2,335,000 | $ | 2,543,072 | ||
New Jersey Economic Development Authority Rev., Series 2014 UU, (School Facilities Construction), 5.00%, 6/15/24 | 4,015,000 | 4,360,210 | ||||
New Jersey Economic Development Authority Rev., Series 2014 UU, (School Facilities Construction), 5.00%, 6/15/25 | 5,000,000 | 5,395,900 | ||||
New Jersey Economic Development Authority Rev., Series 2015 WW, 5.25%, 6/15/40 | 3,250,000 | 3,416,725 | ||||
New Jersey Health Care Facilities Financing Authority Rev., Series 2010, (Hackensack University Medical Center), 5.00%, 1/1/34 | 1,050,000 | 1,137,318 | ||||
New Jersey Health Care Facilities Financing Authority Rev., Series 2010, (The Robert Wood Johnson Foundation), 5.00%, 7/1/31 | 1,725,000 | 1,903,486 | ||||
New Jersey Sports & Exposition Authority Rev., Series 2008 B, 5.00%, 9/1/18(1) | 75,000 | 83,164 | ||||
New Jersey State Turnpike Authority Rev., Series 2009 G, 5.00%, 1/1/18 | 1,700,000 | 1,841,134 | ||||
New Jersey State Turnpike Authority Rev., Series 2013 A, 5.00%, 1/1/28 | 2,000,000 | 2,329,580 | ||||
New Jersey State Turnpike Authority Rev., Series 2013 A, 5.00%, 1/1/29 | 14,940,000 | 17,357,441 | ||||
New Jersey State Turnpike Authority Rev., Series 2014 A, 5.00%, 1/1/27 | 5,000,000 | 5,901,150 | ||||
New Jersey State Turnpike Authority Rev., Series 2014 A, 5.00%, 1/1/33 | 5,215,000 | 5,944,161 | ||||
New Jersey State Turnpike Authority Rev., Series 2014 C, 5.00%, 1/1/20 | 10,000,000 | 11,420,500 | ||||
New Jersey Transportation Trust Fund Authority Rev., Series 2005 B, 5.25%, 12/15/23 (Ambac) | 2,210,000 | 2,444,171 | ||||
New Jersey Transportation Trust Fund Authority Rev., Series 2006 A, 5.25%, 12/15/21 (NATL-RE) | 6,850,000 | 7,738,993 | ||||
New Jersey Transportation Trust Fund Authority Rev., Series 2011 A, 5.25%, 6/15/30 | 5,000,000 | 5,292,550 | ||||
New Jersey Transportation Trust Fund Authority Rev., Series 2011 B, 5.25%, 6/15/23 | 3,000,000 | 3,240,690 | ||||
New Jersey Transportation Trust Fund Authority Rev., Series 2011 B, 5.00%, 6/15/42 | 12,780,000 | 12,995,982 | ||||
New Jersey Transportation Trust Fund Authority Rev., Series 2013 AA, 5.00%, 6/15/44 | 4,900,000 | 4,998,588 | ||||
New Jersey Transportation Trust Fund Authority Rev., Series 2014 AA, 5.00%, 6/15/38 | 6,800,000 | 6,951,640 | ||||
118,278,916 | ||||||
New Mexico — 0.5% | ||||||
New Mexico Finance Authority State Transportation Rev., 5.00%, 6/15/17 | 1,000,000 | 1,067,730 | ||||
New Mexico Finance Authority State Transportation Rev., 5.00%, 6/15/18 | 3,000,000 | 3,313,020 | ||||
New Mexico Finance Authority State Transportation Rev., 4.00%, 6/15/19 | 2,000,000 | 2,206,580 | ||||
New Mexico Hospital Equipment Loan Council Rev., Series 2015 A, (Presbyterian Healthcare Services), 5.00%, 8/1/22 | 725,000 | 867,579 | ||||
New Mexico Hospital Equipment Loan Council Rev., Series 2015 A, (Presbyterian Healthcare Services), 5.00%, 8/1/23 | 1,625,000 | 1,963,682 | ||||
New Mexico Hospital Equipment Loan Council Rev., Series 2015 A, (Presbyterian Healthcare Services), 5.00%, 8/1/25 | 775,000 | 948,817 | ||||
New Mexico Hospital Equipment Loan Council Rev., Series 2015 A, (Presbyterian Healthcare Services), 5.00%, 8/1/26 | 1,000,000 | 1,202,420 | ||||
New Mexico Municipal Energy Acquisition Authority Rev., Series 2014 A, VRDN, 5.00%, 8/1/19 (SBBPA: Royal Bank of Canada) | 5,000,000 | 5,627,150 | ||||
17,196,978 | ||||||
New York — 16.8% | ||||||
Brooklyn Arena Local Development Corp. Rev., (Barclays Center), 6.25%, 7/15/40 | 3,700,000 | 4,203,940 |
23
Principal Amount | Value | |||||
Hempstead Town Local Development Corp. Rev., Series 2011, (Hofstra University), 5.00%, 7/1/24 | $ | 1,465,000 | $ | 1,678,245 | ||
Hempstead Town Local Development Corp. Rev., Series 2011, (Hofstra University), 5.00%, 7/1/26 | 1,130,000 | 1,275,160 | ||||
Hempstead Town Local Development Corp. Rev., Series 2011, (Hofstra University), 5.00%, 7/1/27 | 1,320,000 | 1,480,789 | ||||
Hudson Yards Infrastructure Corp. Rev., Series 2006 A, 5.00%, 2/15/47 | 5,000,000 | 5,200,550 | ||||
Long Island Power Authority Electric System Rev., Series 1998 2-B, VRDN, 0.02%, 12/1/15 (LOC: Bayerische Landesbank) | 550,000 | 550,000 | ||||
Long Island Power Authority Electric System Rev., Series 2011 A, 5.00%, 5/1/21 | 2,385,000 | 2,782,365 | ||||
Long Island Power Authority Rev., Series 2014 A, 5.00%, 9/1/34 | 11,410,000 | 12,947,840 | ||||
Long Island Power Authority Rev., Series 2014 A, 5.00%, 9/1/35 | 3,500,000 | 3,963,190 | ||||
Metropolitan Transportation Authority Rev., Series 2005 G, 5.00%, 11/15/19 | 1,750,000 | 2,000,670 | ||||
Metropolitan Transportation Authority Rev., Series 2008 B, VRDN, 0.38%, 12/3/15 | 1,000,000 | 986,180 | ||||
Metropolitan Transportation Authority Rev., Series 2008 C, 6.25%, 11/15/23 | 5,000,000 | 5,756,900 | ||||
Metropolitan Transportation Authority Rev., Series 2011 A, 5.00%, 11/15/41 | 2,100,000 | 2,380,854 | ||||
Metropolitan Transportation Authority Rev., Series 2012 E, 5.00%, 11/15/17 | 2,000,000 | 2,162,180 | ||||
Metropolitan Transportation Authority Rev., Series 2012 E, 5.00%, 11/15/26 | 5,000,000 | 5,939,450 | ||||
Metropolitan Transportation Authority Rev., Series 2013 A, 5.00%, 11/15/26 | 4,595,000 | 5,433,082 | ||||
Metropolitan Transportation Authority Rev., Series 2013 B, 5.00%, 11/15/29 | 10,360,000 | 12,012,938 | ||||
Metropolitan Transportation Authority Rev., Series 2013 B, 5.00%, 11/15/43 | 5,000,000 | 5,589,400 | ||||
Metropolitan Transportation Authority Rev., Series 2014 D, VRDN, 0.37%, 12/3/15 | 7,500,000 | 7,443,825 | ||||
Nassau County Interim Finance Authority Rev., Series 2009 A, (Sales Tax Secured Bond), 5.00%, 5/15/19, Prerefunded at 100% of Par(1) | 1,680,000 | 1,911,134 | ||||
Nassau County Interim Finance Authority Rev., Series 2009 A, (Sales Tax Secured Bond), 5.00%, 5/15/19, Prerefunded at 100% of Par(1) | 1,400,000 | 1,592,612 | ||||
Nassau County Interim Finance Authority Rev., Series 2009 A, (Sales Tax Secured Bond), 5.00%, 11/15/21 | 120,000 | 135,088 | ||||
Nassau County Interim Finance Authority Rev., Series 2009 A, (Sales Tax Secured Bond), 5.00%, 11/15/23 | 100,000 | 111,967 | ||||
Nassau County Local Economic Assistance Corp. Rev., (Catholic Health Services of Long Island Obligation Group Project), 5.00%, 7/1/22 | 750,000 | 874,598 | ||||
New York City GO, Series 2004 D, 5.00%, 11/1/17 (AGM) | 5,000 | 5,021 | ||||
New York City GO, Series 2006 J-1, 5.00%, 6/1/18 | 10,000 | 10,242 | ||||
New York City GO, Series 2008 J, VRN, 0.39%, 12/3/15 | 3,500,000 | 3,499,125 | ||||
New York City GO, Series 2013 A-1, 5.00%, 8/1/36 | 4,510,000 | 5,210,583 | ||||
New York City GO, Series 2013 D, 5.00%, 8/1/22 | 7,565,000 | 9,114,085 | ||||
New York City GO, Series 2013 J, 5.00%, 8/1/18 | 4,095,000 | 4,524,197 | ||||
New York City GO, Series 2013 J, 5.00%, 8/1/23 | 10,000,000 | 12,171,300 | ||||
New York City GO, Series 2015 A, 5.00%, 8/1/18 | 5,000,000 | 5,524,050 | ||||
New York City GO, Series 2015 A, 5.00%, 8/1/27 | 5,095,000 | 6,179,267 | ||||
New York City GO, Series 2015 B, 5.00%, 8/1/27 | 4,830,000 | 5,857,872 | ||||
New York City GO, Series 2015 C, 5.00%, 8/1/25 | 1,650,000 | 2,028,890 |
24
Principal Amount | Value | |||||
New York City GO, Series 2015 C, 5.00%, 8/1/26 | $ | 5,370,000 | $ | 6,521,113 | ||
New York City GO, Series 2015-1, 5.00%, 8/1/20 | 5,000,000 | 5,837,050 | ||||
New York City Municipal Water Finance Authority Water & Sewer System Rev., Series 2008 C, 5.00%, 6/15/17(1) | 1,350,000 | 1,440,302 | ||||
New York City Municipal Water Finance Authority Water & Sewer System Rev., Series 2009 EE, (Second General Resolution), 5.00%, 6/15/39 | 7,010,000 | 7,827,927 | ||||
New York City Municipal Water Finance Authority Water & Sewer System Rev., Series 2009 GG-1, (Second General Resolution), 5.00%, 6/15/39 | 5,000,000 | 5,583,400 | ||||
New York City Municipal Water Finance Authority Water & Sewer System Rev., Series 2015 FF, (Second General Resolution), 5.00%, 6/15/39 | 8,695,000 | 10,062,115 | ||||
New York City Transitional Finance Authority Rev., Series 2007 B, (Future Tax Secured Bonds), 5.00%, 5/1/17, Prerefunded at 100% of Par(1) | 2,555,000 | 2,712,848 | ||||
New York City Transitional Finance Authority Rev., Series 2009 S-4, 5.50%, 1/15/39 | 1,700,000 | 1,919,844 | ||||
New York City Transitional Finance Authority Rev., Series 2011 S1-A, 5.00%, 7/15/25 | 4,850,000 | 5,714,513 | ||||
New York City Transitional Finance Authority Rev., Series 2011 A, (Future Tax Secured Bonds), 5.00%, 11/1/16(1) | 445,000 | 463,757 | ||||
New York City Transitional Finance Authority Rev., Series 2011 A, (Future Tax Secured Bonds), 5.00%, 11/1/16(1) | 3,345,000 | 3,489,270 | ||||
New York City Transitional Finance Authority Rev., Series 2011 A, (Future Tax Secured Bonds), 5.00%, 11/1/17(1) | 715,000 | 772,815 | ||||
New York City Transitional Finance Authority Rev., Series 2011 A, (Future Tax Secured Bonds), 5.00%, 11/1/17 | 5,365,000 | 5,803,481 | ||||
New York City Transitional Finance Authority Rev., Series 2011 A-1, (Future Tax Secured Bonds), 5.00%, 11/1/21 | 4,000,000 | 4,771,280 | ||||
New York City Transitional Finance Authority Rev., Series 2011 C, (Future Tax Secured Bonds), 5.00%, 11/1/39 | 4,000,000 | 4,567,800 | ||||
New York City Transitional Finance Authority Rev., Series 2011 D-1, (Future Tax Secured Bonds), 5.00%, 11/1/24 | 4,000,000 | 4,769,680 | ||||
New York City Transitional Finance Authority Rev., Series 2011 D-1, (Future Tax Secured Bonds), 5.00%, 11/1/25 | 6,000,000 | 7,135,860 | ||||
New York City Transitional Finance Authority Rev., Series 2013 I, (Future Tax Secured Bonds), 5.00%, 5/1/28 | 12,960,000 | 15,465,686 | ||||
New York City Transitional Finance Authority Rev., Series 2015 A-1, (Future Tax Secured Bonds), 5.00%, 8/1/29 | 10,000,000 | 12,006,800 | ||||
New York City Transitional Finance Authority Rev., Series 2015 C, (Future Tax Secured Bonds), 5.00%, 11/1/25 | 3,000,000 | 3,713,880 | ||||
New York City Transitional Finance Authority Rev., Series 2015 C, (Future Tax Secured Bonds), 5.00%, 11/1/26 | 15,000,000 | 18,361,950 | ||||
New York City Transitional Finance Authority Rev., Series 2015 S-1, (Building Aid Revenue Bonds), 5.00%, 7/15/29 | 6,375,000 | 7,545,195 | ||||
New York GO, Series 1993 E-3, 5.00%, 8/1/23 | 5,000,000 | 5,912,100 | ||||
New York GO, Series 2009 A, 5.00%, 2/15/39 | 1,700,000 | 1,894,242 | ||||
New York GO, Series 2009 E, 5.00%, 8/1/16 | 2,600,000 | 2,680,782 | ||||
New York GO, Series 2009 H-1, 5.00%, 3/1/17 | 3,000,000 | 3,164,250 | ||||
New York GO, Series 2009 H-1, 5.00%, 3/1/22 | 7,000,000 | 7,821,590 | ||||
New York GO, Series 2009 J-1, 5.00%, 5/15/22 | 6,570,000 | 7,385,140 | ||||
New York GO, Series 2010 A, 5.00%, 8/1/17 | 2,190,000 | 2,345,424 | ||||
New York GO, Series 2010 E, 5.00%, 8/1/19 | 4,555,000 | 5,178,534 | ||||
New York GO, Series 2011 A-1, 5.00%, 8/1/18 | 5,000,000 | 5,524,050 | ||||
New York GO, Series 2011 B, 5.00%, 8/1/16 | 3,705,000 | 3,820,114 | ||||
New York GO, Series 2011 D-1, 5.00%, 10/1/19 | 5,000,000 | 5,708,100 | ||||
New York GO, Series 2012 F, 5.00%, 8/1/16 | 7,720,000 | 7,959,860 |
25
Principal Amount | Value | |||||
New York Liberty Development Corp. Rev., Series 2005, (Goldman Sachs Headquarters), 5.25%, 10/1/35 | $ | 9,535,000 | $ | 11,389,176 | ||
New York Power Authority Rev., Series 2011 A, 5.00%, 11/15/22 | 1,000,000 | 1,210,870 | ||||
New York State Dormitory Authority Personal Income Tax Rev., Series 2008 B, 5.75%, 3/15/36 | 10,000,000 | 11,450,000 | ||||
New York State Dormitory Authority Personal Income Tax Rev., Series 2009 A, 5.00%, 2/15/19, Prerefunded at 100% of Par(1) | 5,000 | 5,640 | ||||
New York State Dormitory Authority Personal Income Tax Rev., Series 2009 A, 5.25%, 2/15/19, Prerefunded at 100% of Par(1) | 30,000 | 34,084 | ||||
New York State Dormitory Authority Personal Income Tax Rev., Series 2009 A, 5.25%, 2/15/25 | 8,795,000 | 9,874,322 | ||||
New York State Dormitory Authority Personal Income Tax Rev., Series 2009 A, 5.00%, 2/15/39 | 3,995,000 | 4,430,175 | ||||
New York State Dormitory Authority Personal Income Tax Rev., Series 2011 C, (General Purpose), 5.00%, 3/15/24 | 6,530,000 | 7,637,553 | ||||
New York State Dormitory Authority Personal Income Tax Rev., Series 2012 A, (General Purpose), 5.00%, 12/15/25 | 8,225,000 | 9,881,104 | ||||
New York State Dormitory Authority Rev., Series 2009 A, (North Shore Long Island Jewish Health System), 5.50%, 5/1/19, Prerefunded at 100% of Par(1) | 1,200,000 | 1,381,884 | ||||
New York State Dormitory Authority Rev., Series 2009, (Brooklyn Law School), 5.75%, 7/1/33 | 1,000,000 | 1,117,180 | ||||
New York State Dormitory Authority Rev., Series 2012 A, (Columbia University), 5.00%, 10/1/22 | 2,800,000 | 3,420,172 | ||||
New York State Dormitory Authority Rev., Series 2012 D, 5.00%, 2/15/27 | 8,235,000 | 9,641,538 | ||||
New York State Dormitory Authority Rev., Series 2012 D, 5.00%, 2/15/22, Prerefunded at 100% of Par(1) | 1,765,000 | 2,130,320 | ||||
New York State Dormitory Authority Rev., Series 2015 A, 5.00%, 3/15/17 | 5,380,000 | 5,686,983 | ||||
New York State Dormitory Authority Rev., Series 2015 A, (Columbia University), 5.00%, 10/1/25 | 3,500,000 | 4,441,290 | ||||
New York State Dormitory Authority Rev., Series 2015 A, (Columbia University), 5.00%, 10/1/45 | 3,500,000 | 4,746,420 | ||||
New York State Dormitory Authority Rev., Series 2015 A, (New York University), 5.00%, 7/1/20 | 1,300,000 | 1,518,842 | ||||
New York State Dormitory Authority Rev., Series 2015 A, (New York University), 5.00%, 7/1/21 | 1,840,000 | 2,193,133 | ||||
New York State Dormitory Authority Rev., Series 2015 A, (New York University), 5.00%, 7/1/22 | 1,580,000 | 1,906,870 | ||||
New York State Dormitory Authority Rev., Series 2015 A, (New York University), 5.00%, 7/1/23 | 3,190,000 | 3,902,008 | ||||
New York State Environmental Facilities Corp. Rev., Series 2015 D, 5.00%, 9/15/23 | 7,660,000 | 9,438,192 | ||||
New York State Environmental Facilities Corp. Rev., Series 2015 D, 5.00%, 3/15/24 | 7,340,000 | 9,096,022 | ||||
New York State Thruway Authority Rev., Series 2009 A-1, 5.00%, 4/1/23 | 3,000,000 | 3,338,130 | ||||
New York State Thruway Authority Rev., Series 2012 I, 5.00%, 1/1/24 | 3,330,000 | 3,959,603 | ||||
New York State Thruway Authority Rev., Series 2013 A, 5.00%, 5/1/19 | 6,900,000 | 7,756,566 | ||||
New York State Thruway Authority Rev., Series 2014 K, 5.00%, 1/1/28 | 5,000,000 | 6,012,550 | ||||
New York State Thruway Authority Rev., Series 2014 K, 5.00%, 1/1/29 | 9,850,000 | 11,721,204 | ||||
New York State Thruway Authority Second General Highway & Bridge Trust Fund Rev., Series 2011 A-1, 5.00%, 4/1/25 | 5,865,000 | 6,767,272 | ||||
New York State Urban Development Corp. Rev., Series 2009 C, (State Personal Income Tax), 5.00%, 12/15/15 | 3,000,000 | 3,006,150 | ||||
New York State Urban Development Corp. Rev., Series 2013 A-1, (State Personal Income Tax), 5.00%, 3/15/28 | 3,900,000 | 4,611,360 |
26
Principal Amount | Value | |||||
Niagara Falls Bridge Commission Toll Rev., Series 1993 A, (Bridge System), 4.00%, 10/1/19 (AGC) | $ | 2,585,000 | $ | 2,766,596 | ||
Port Authority of New York & New Jersey Special Obligation Rev., Series 2010 8, (John F. Kennedy International Airport Terminal), 5.00%, 12/1/20 | 850,000 | 965,405 | ||||
Port Authority of New York & New Jersey Special Obligation Rev., Series 2010 8, (John F. Kennedy International Airport Terminal), 6.00%, 12/1/42 | 2,600,000 | 3,040,102 | ||||
Port Authority of New York & New Jersey Special Obligation Rev., Series 2013 179, 5.00%, 12/1/27 | 10,000,000 | 12,112,300 | ||||
Tobacco Settlement Financing Corp. Rev., Series 2011 A, 5.00%, 6/1/17 | 10,000,000 | 10,646,800 | ||||
Tobacco Settlement Financing Corp. Rev., Series 2011 A, 5.00%, 6/1/18 | 8,025,000 | 8,822,043 | ||||
Tompkins County Development Corp. Rev., Series 2014 A, (Kendal at Ithaca, Inc.), 4.00%, 7/1/29 | 500,000 | 502,350 | ||||
Tompkins County Development Corp. Rev., Series 2014 A, (Kendal at Ithaca, Inc.), 5.00%, 7/1/29 | 730,000 | 804,606 | ||||
Tompkins County Development Corp. Rev., Series 2014 A, (Kendal at Ithaca, Inc.), 5.00%, 7/1/34 | 1,000,000 | 1,086,040 | ||||
Tompkins County Development Corp. Rev., Series 2014 A, (Kendal at Ithaca, Inc.), 5.00%, 7/1/44 | 1,000,000 | 1,070,910 | ||||
Triborough Bridge & Tunnel Authority Rev., Series 2008 C, 5.00%, 11/15/38 | 10,000,000 | 11,020,200 | ||||
Triborough Bridge & Tunnel Authority Rev., Series 2012 B, 4.00%, 11/15/16 | 3,250,000 | 3,363,165 | ||||
Triborough Bridge & Tunnel Authority Rev., Series 2012 B, 5.00%, 11/15/17 | 3,325,000 | 3,601,241 | ||||
Triborough Bridge & Tunnel Authority Rev., Series 2013 A, 5.00%, 11/15/30 | 3,030,000 | 3,527,920 | ||||
Triborough Bridge & Tunnel Authority Rev., Series 2015 A, 5.00%, 11/15/29 | 700,000 | 841,036 | ||||
Westchester County Local Development Corp. Rev., Series 2014 A, (Pace University), 5.50%, 5/1/42 | 3,310,000 | 3,665,527 | ||||
569,961,195 | ||||||
North Carolina — 0.7% | ||||||
Charlotte GO, 5.00%, 8/1/19 | 2,000,000 | 2,212,600 | ||||
Charlotte Water & Sewer System Rev., 5.00%, 7/1/17 | 1,000,000 | 1,069,350 | ||||
Greensboro Rev., (Combined Enterprise System), 5.25%, 6/1/20 | 2,060,000 | 2,422,581 | ||||
North Carolina Eastern Municipal Power Agency Rev., Series 2009 A, 5.00%, 1/1/17(1) | 2,790,000 | 2,923,781 | ||||
North Carolina Eastern Municipal Power Agency Rev., Series 2009 A, 5.00%, 1/1/18(1) | 2,955,000 | 3,205,111 | ||||
North Carolina Municipal Power Agency No. 1 Catawba Electric Rev., Series 2008 C, 5.25%, 1/1/18, Prerefunded at 100% of Par(1) | 2,500,000 | 2,726,125 | ||||
North Carolina Municipal Power Agency No. 1 Catawba Electric Rev., Series 2008 C, 5.25%, 1/1/18, Prerefunded at 100% of Par(1) | 2,000,000 | 2,180,900 | ||||
North Carolina Municipal Power Agency No. 1 Catawba Electric Rev., Series 2009 A, 5.00%, 1/1/30 | 1,800,000 | 1,981,260 | ||||
North Carolina Municipal Power Agency No. 1 Catawba Electric Rev., Series 2012 B, 5.00%, 1/1/28 | 4,050,000 | 4,630,567 | ||||
Raleigh Durham Airport Authority Rev., Series 2015 A, 5.00%, 5/1/20 | 450,000 | 522,549 | ||||
Raleigh Durham Airport Authority Rev., Series 2015 A, 5.00%, 5/1/21 | 360,000 | 426,593 | ||||
Raleigh Durham Airport Authority Rev., Series 2015 A, 5.00%, 5/1/22 | 760,000 | 911,430 | ||||
25,212,847 |
27
Principal Amount | Value | |||||
North Dakota — 0.2% | ||||||
Grand Forks Health Care Facilities Rev., Series 1996 A, (The United Hospital Obligation Group), VRDN, 0.01%, 12/1/15 (LOC: Bank of America N.A.) | $ | 5,600,000 | $ | 5,600,000 | ||
Ohio — 2.4% | ||||||
American Municipal Power, Inc. Rev., Series 2008 A, (Prairie State Energy Campus), 5.00%, 2/15/17(1) | 575,000 | 605,717 | ||||
Cleveland Airport System Rev., Series 2012 A, 5.00%, 1/1/25 (AGM) | 4,000,000 | 4,583,120 | ||||
Cleveland Airport System Rev., Series 2012 A, 5.00%, 1/1/25 | 2,500,000 | 2,825,150 | ||||
Cleveland Airport System Rev., Series 2012 A, 5.00%, 1/1/26 (AGM) | 3,560,000 | 4,046,581 | ||||
Cleveland Airport System Rev., Series 2012 A, 5.00%, 1/1/26 | 2,530,000 | 2,837,901 | ||||
Cleveland COP, Series 2010 A, (Cleveland Stadium), 5.00%, 11/15/19 | 2,450,000 | 2,741,770 | ||||
Cleveland Income Tax Rev., (Subordinate Lien), 5.00%, 5/15/21 | 1,475,000 | 1,723,596 | ||||
Cleveland Income Tax Rev., (Subordinate Lien), 5.00%, 5/15/23 | 1,305,000 | 1,553,929 | ||||
Cleveland-Cuyahoga County Port Authority Rev., (Euclid Avenue Development Corp.), 5.00%, 8/1/39 | 4,900,000 | 5,445,321 | ||||
Cleveland-Cuyahoga County Port Authority Rev., (Euclid Avenue Development Corp.), 5.00%, 8/1/44 | 2,150,000 | 2,290,567 | ||||
Miami University Rev., 5.00%, 9/1/25 | 4,440,000 | 5,135,881 | ||||
Ohio Air Quality Development Authority Rev., Series 2006 A, (FirstEnergy Generation Corp.), VRDN, 3.75%, 12/3/18 (GA: FirstEnergy Solutions Corp.) | 24,600,000 | 25,097,658 | ||||
Ohio GO, Series 2011 A, (Infrastructure Improvement), 5.00%, 9/15/16 | 6,000,000 | 6,224,640 | ||||
Ohio Higher Educational Facility Commission Rev., (Oberlin College), 5.00%, 10/1/19 | 5,000,000 | 5,713,150 | ||||
Ohio Higher Educational Facility Commission Rev., Series 1990 B, (Case Western Reserve University), 6.50%, 10/1/20 | 620,000 | 698,058 | ||||
Ohio State University (The) Rev., Series 2009 A, 5.00%, 12/1/18, Prerefunded at 100% of Par(1) | 200,000 | 223,848 | ||||
Ohio State University (The) Rev., Series 2009 A, 5.00%, 12/1/27 | 1,800,000 | 1,993,266 | ||||
Ohio State University (The) Rev., Series 2010 A, 5.00%, 12/1/16(1) | 225,000 | 235,316 | ||||
Ohio State University (The) Rev., Series 2010 A, 5.00%, 12/1/16 | 3,775,000 | 3,948,386 | ||||
Ohio State Water Development Authority Rev., (Drinking Water Assistance Fund), 5.00%, 6/1/18, Prerefunded at 100% of Par(1) | 2,000,000 | 2,201,000 | ||||
80,124,855 | ||||||
Oklahoma — 0.3% | ||||||
Oklahoma Development Finance Authority Health System Rev., Series 2008 C, 5.50%, 8/15/18, Prerefunded at 100% of Par(1) | 3,000,000 | 3,363,210 | ||||
Oklahoma Development Finance Authority Rev., Series 2015 A, (INTEGRIS Obligated Group), 5.00%, 8/15/25 | 1,500,000 | 1,842,900 | ||||
Oklahoma Development Finance Authority Rev., Series 2015 A, (INTEGRIS Obligated Group), 5.00%, 8/15/26 | 1,000,000 | 1,216,240 | ||||
Oklahoma Development Finance Authority Rev., Series 2015 A, (INTEGRIS Obligated Group), 5.00%, 8/15/27 | 1,000,000 | 1,205,570 | ||||
Pottawatomie County Facilities Authority Rev., (Shawnee Public Schools), 5.00%, 9/1/16 | 2,130,000 | 2,137,391 | ||||
9,765,311 | ||||||
Oregon — 0.4% | ||||||
Oregon GO, Series 2011 J, 5.00%, 5/1/19 | 1,080,000 | 1,223,176 | ||||
Oregon GO, Series 2011 J, 5.00%, 5/1/20 | 1,870,000 | 2,174,398 | ||||
Oregon GO, Series 2011 J, 5.00%, 5/1/21 | 1,500,000 | 1,782,345 | ||||
Oregon GO, Series 2015 O, 5.00%, 8/1/20 | 1,000,000 | 1,171,090 |
28
Principal Amount | Value | |||||
Oregon GO, Series 2015 O, 5.00%, 8/1/21 | $ | 750,000 | $ | 895,155 | ||
Oregon GO, Series 2015 O, 5.00%, 8/1/22 | 700,000 | 849,814 | ||||
Oregon GO, Series 2015 O, 5.00%, 8/1/23 | 1,340,000 | 1,648,307 | ||||
Oregon GO, Series 2015 O, 5.00%, 8/1/24 | 1,000,000 | 1,245,170 | ||||
Oregon Health & Science University Rev., Series 2009 A, 5.75%, 7/1/39 | 2,900,000 | 3,303,129 | ||||
14,292,584 | ||||||
Pennsylvania — 3.9% | ||||||
Allegheny County Hospital Development Authority Rev., Series 2008 A, (University of Pittsburgh Medical Center), 5.00%, 9/1/18 | 1,500,000 | 1,662,750 | ||||
Berks County Municipal Authority Rev., Series 2012 B, (Reading Hospital Medical Center), VRDN, 1.51%, 12/3/15 | 2,500,000 | 2,519,575 | ||||
Central Dauphin School District GO, 7.00%, 2/1/16, Prerefunded at 100% of Par (NATL-RE)(1) | 1,150,000 | 1,163,168 | ||||
Delaware River Port Authority Rev., (Port District Project), 5.00%, 1/1/16 | 1,200,000 | 1,204,620 | ||||
East Stroudsburg Area School District GO, 7.75%, 9/1/16, Prerefunded at 100% of Par (AGM)(1) | 2,580,000 | 2,723,396 | ||||
Exeter Township GO, 5.30%, 7/15/19 (Ambac) | 1,830,000 | 2,090,446 | ||||
Geisinger Authority Health System Rev., VRN, 0.99%, 2/1/16 | 5,000,000 | 4,268,950 | ||||
Pennsylvania Economic Development Financing Authority Rev., Series 2009 A, (Albert Einstein Healthcare Network), 6.25%, 10/15/19, Prerefunded at 100% of Par(1) | 5,000,000 | 5,779,200 | ||||
Pennsylvania Economic Development Financing Authority Unemployment Compensation Rev., Series 2012 A, 5.00%, 7/1/18 | 5,430,000 | 6,002,213 | ||||
Pennsylvania Economic Development Financing Authority Unemployment Compensation Rev., Series 2012 A, 5.00%, 7/1/19 | 15,525,000 | 17,659,843 | ||||
Pennsylvania Economic Development Financing Authority Unemployment Compensation Rev., Series 2012 B, 5.00%, 7/1/20 | 7,250,000 | 8,211,422 | ||||
Pennsylvania GO, 5.375%, 7/1/16 (NATL-RE) | 2,795,000 | 2,879,018 | ||||
Pennsylvania GO, 5.375%, 7/1/18 (AGM) | 1,070,000 | 1,187,754 | ||||
Pennsylvania Higher Educational Facilities Authority Rev., Series 2009 A, (University of Pennsylvania), 5.00%, 9/1/19(1) | 1,000,000 | 1,143,690 | ||||
Pennsylvania Higher Educational Facilities Authority Rev., Series 2012 1, (Temple University), 5.00%, 4/1/25 | 1,000,000 | 1,169,250 | ||||
Pennsylvania Higher Educational Facilities Authority Rev., Series 2012 1, (Temple University), 5.00%, 4/1/26 | 1,000,000 | 1,161,210 | ||||
Pennsylvania Higher Educational Facilities Authority Rev., Series 2012 1, (Temple University), 5.00%, 4/1/27 | 1,150,000 | 1,326,583 | ||||
Pennsylvania Higher Educational Facilities Authority Rev., Series 2015, (University of Pennsylvania), 5.00%, 8/15/20 | 1,600,000 | 1,859,296 | ||||
Pennsylvania Turnpike Commission Rev., Series 2014 A, Capital Appreciation, 0.00%, 12/1/21(4) | 1,800,000 | 1,441,800 | ||||
Pennsylvania Turnpike Commission Rev., Series 2009 B, 5.25%, 6/1/22 | 10,000,000 | 11,213,200 | ||||
Pennsylvania Turnpike Commission Rev., Series 2013 A, VRN, 0.61%, 12/3/15 | 5,000,000 | 4,977,350 | ||||
Pennsylvania Turnpike Commission Rev., Series 2013 A, VRN, 0.69%, 12/3/15 | 3,945,000 | 3,917,543 | ||||
Pennsylvania Turnpike Commission Rev., Series 2014 B, 5.00%, 12/1/32 | 6,505,000 | 7,392,802 | ||||
Pennsylvania Turnpike Commission Rev., Series 2014 B, 5.25%, 12/1/39 | 5,000,000 | 5,646,000 | ||||
Pennsylvania Turnpike Commission Rev., Series 2014 C, 5.00%, 12/1/26 | 1,850,000 | 2,197,115 | ||||
Pennsylvania Turnpike Commission Rev., Series 2014 C, 5.00%, 12/1/27 | 945,000 | 1,113,125 | ||||
Pennsylvania Turnpike Commission Rev., Series 2014 C, 5.00%, 12/1/28 | 1,000,000 | 1,168,290 | ||||
Philadelphia Rev., Series 2009 A, (1998 General Ordinance), 5.25%, 8/1/17 | 1,000,000 | 1,071,430 |
29
Principal Amount | Value | |||||
Philadelphia Water & Wastewater Rev., Series 2009 A, 5.25%, 1/1/36 | $ | 1,415,000 | $ | 1,551,491 | ||
Pittsburgh GO, Series 2006 B, 5.25%, 9/1/16 (AGM) | 15,805,000 | 16,376,667 | ||||
Pittsburgh GO, Series 2012 B, 5.00%, 9/1/25 | 3,000,000 | 3,496,320 | ||||
Pittsburgh GO, Series 2012 B, 5.00%, 9/1/26 | 1,000,000 | 1,155,310 | ||||
Southcentral General Authority Rev., Series 2014 A, (Wellspan Health Obligation Group), 5.00%, 6/1/44 | 4,950,000 | 5,484,303 | ||||
Southeastern Pennsylvania Transportation Authority, (Capital Guarantee Receipts), 5.00%, 6/1/16 | 1,060,000 | 1,084,316 | ||||
133,299,446 | ||||||
Rhode Island† | ||||||
Rhode Island Depositors Economic Protection Corp. Rev., Series 1993 A, 6.25%, 8/1/16 (NATL-RE)(1) | 1,015,000 | 1,054,078 | ||||
South Carolina — 0.9% | ||||||
Charleston Educational Excellence Finance Corp. Rev., (Charleston County Schools), 5.00%, 12/1/24 | 1,750,000 | 2,120,125 | ||||
Charleston Educational Excellence Finance Corp. Rev., (Charleston County Schools), 5.00%, 12/1/25 | 2,945,000 | 3,539,272 | ||||
Kershaw County Public Schools Foundation Installment Purchase Rev., (School Improvements), 5.00%, 12/1/16, Prerefunded at 100% of Par (AGC)(1) | 1,060,000 | 1,108,378 | ||||
Kershaw County Public Schools Foundation Installment Purchase Rev., (School Improvements), 5.00%, 12/1/16, Prerefunded at 100% of Par (AGC)(1) | 2,260,000 | 2,363,146 | ||||
Kershaw County Public Schools Foundation Installment Purchase Rev., (School Improvements), 5.00%, 12/1/16, Prerefunded at 100% of Par (AGC)(1) | 700,000 | 731,948 | ||||
Kershaw County Public Schools Foundation Installment Purchase Rev., (School Improvements), 5.00%, 12/1/16, Prerefunded at 100% of Par (AGC)(1) | 3,000,000 | 3,136,920 | ||||
Piedmont Municipal Power Agency Rev., 6.75%, 1/1/19 (FGIC)(1) | 625,000 | 733,625 | ||||
Piedmont Municipal Power Agency Rev., 6.75%, 1/1/19 (NATL-RE) | 875,000 | 1,016,838 | ||||
Piedmont Municipal Power Agency Rev., Series 1991 A, 6.50%, 1/1/16 (FGIC)(1) | 140,000 | 140,764 | ||||
Piedmont Municipal Power Agency Rev., Series 1991 A, 6.50%, 1/1/16 (FGIC)(1) | 485,000 | 487,648 | ||||
Piedmont Municipal Power Agency Rev., Series 1991 A, 6.50%, 1/1/16 (FGIC) | 375,000 | 376,961 | ||||
Piedmont Municipal Power Agency Rev., Series 2009 A-3, 5.00%, 1/1/16 | 5,000,000 | 5,020,250 | ||||
Piedmont Municipal Power Agency Rev., Series 2009 A-3, 5.00%, 1/1/17 | 3,000,000 | 3,143,010 | ||||
South Carolina Jobs-Economic Development Authority Hospital Rev., (Palmetto Health), 5.75%, 8/1/39 | 2,700,000 | 2,918,457 | ||||
South Carolina Ports Authority Rev., 5.00%, 7/1/16 | 2,695,000 | 2,766,202 | ||||
29,603,544 | ||||||
Tennessee — 0.2% | ||||||
Clarksville Public Building Authority Rev., (Adjusted Financing Tennessee Municipal Bond Fund), VRDN, 0.01%, 12/1/15 (LOC: Bank of America N.A.) | 2,570,000 | 2,570,000 | ||||
Memphis Electric System Rev., 5.00%, 12/1/15 | 2,500,000 | 2,500,350 | ||||
Memphis Electric System Rev., 5.00%, 12/1/16 | 1,000,000 | 1,046,140 | ||||
Tennessee State School Board Authority Rev., Series 2008 B, (Higher Educational Facilities), 5.125%, 5/1/18, Prerefunded at 100% of Par(1) | 180,000 | 198,245 | ||||
Tennessee State School Board Authority Rev., Series 2008 B, (Higher Educational Facilities), 5.125%, 5/1/18, Prerefunded at 100% of Par(1) | 820,000 | 903,320 | ||||
7,218,055 |
30
Principal Amount | Value | |||||
Texas — 8.7% | ||||||
Allen Independent School District GO, (School Building), 5.25%, 2/15/34 | $ | 3,325,000 | $ | 3,727,558 | ||
Austin Water & Wastewater System Rev., Series 2011, (Travis, Williamson and Hays Counties), 5.00%, 11/15/28 | 5,300,000 | 6,235,344 | ||||
Canadian River Municipal Water Authority Rev., (Conjunctive Use Groundwater Supply Project), 5.00%, 2/15/16, Prerefunded at 100% of Par (Ambac)(1) | 1,000,000 | 1,010,030 | ||||
Canadian River Municipal Water Authority Rev., (Conjunctive Use Groundwater Supply Project), 5.00%, 2/15/16 | 350,000 | 353,497 | ||||
Central Texas Regional Mobility Authority Rev., (Senior Lien), 6.00%, 1/1/41 | 2,500,000 | 2,860,150 | ||||
Central Texas Regional Mobility Authority Rev., Series 2013 A, (Senior Lien), 5.00%, 1/1/21 | 860,000 | 982,602 | ||||
Central Texas Regional Mobility Authority Rev., Series 2015 A, (Senior Lien), 5.00%, 1/1/45 | 1,900,000 | 2,065,756 | ||||
Central Texas Turnpike System Rev., Series 2015 C, 5.00%, 8/15/42 | 1,750,000 | 1,907,063 | ||||
City of Austin Electric Utility Rev., 4.00%, 11/15/17 | 500,000 | 530,250 | ||||
City of Austin Electric Utility Rev., 5.00%, 11/15/19 | 500,000 | 571,620 | ||||
City of Houston Convention & Entertainment Facilities Department Hotel Occupancy Tax Rev., 5.00%, 9/1/25 | 1,000,000 | 1,198,580 | ||||
City Public Service Board of San Antonio Rev., 5.00%, 2/1/19 | 10,000,000 | 11,245,700 | ||||
Clifton Higher Education Finance Corp. Rev., (IDEA Public Schools), 5.00%, 8/15/39 (PSF-GTD) | 3,300,000 | 3,724,116 | ||||
Cypress-Fairbanks Independent School District GO, 5.00%, 2/15/16 (PSF-GTD) | 1,000,000 | 1,010,170 | ||||
Dallas Area Rapid Transit Sales Tax Rev., Series 2010 A, (Senior Lien), 5.00%, 12/1/15 | 2,185,000 | 2,185,306 | ||||
Dallas Area Rapid Transit Sales Tax Rev., Series 2010 A, (Senior Lien), 5.00%, 12/1/19 | 2,250,000 | 2,581,717 | ||||
Dallas Waterworks & Sewer System Rev., Series 2015 A, 5.00%, 10/1/25 | 2,750,000 | 3,437,280 | ||||
Dallas-Fort Worth International Airport Rev., Series 2011 D, 5.00%, 11/1/20 | 2,900,000 | 3,377,775 | ||||
Dallas-Fort Worth International Airport Rev., Series 2011 D, 5.00%, 11/1/21 | 4,400,000 | 5,090,580 | ||||
Dallas-Fort Worth International Airport Rev., Series 2014 C, 5.00%, 11/1/18 | 720,000 | 799,927 | ||||
Dallas-Fort Worth International Airport Rev., Series 2014 C, 5.00%, 11/1/20 | 725,000 | 844,444 | ||||
Dallas-Fort Worth International Airport Rev., Series 2014 C, 5.00%, 11/1/21 | 500,000 | 590,005 | ||||
Dallas-Fort Worth International Airport Rev., Series 2014 C, 5.00%, 11/1/22 | 400,000 | 479,504 | ||||
Dallas-Fort Worth International Airport Rev., Series 2014 C, 5.00%, 11/1/23 | 645,000 | 782,540 | ||||
Fort Worth Water & Sewer Rev., 5.00%, 2/15/17 | 1,000,000 | 1,053,800 | ||||
Fort Worth Water & Sewer System Rev., Series 2015 A, 5.00%, 2/15/24 | 11,780,000 | 14,422,843 | ||||
Frisco Independent School District GO, Series 2015, 5.00%, 8/15/21 (PSF-GTD) | 4,015,000 | 4,784,354 | ||||
Frisco Independent School District GO, Series 2015, 5.00%, 8/15/22 (PSF-GTD) | 3,140,000 | 3,809,856 | ||||
Garland Independent School District GO, Series 2015 A, 5.00%, 2/15/22 (PSF-GTD) | 4,125,000 | 4,953,382 | ||||
Garland Independent School District GO, Series 2015 A, 5.00%, 2/15/24 (PSF-GTD) | 7,790,000 | 9,564,095 | ||||
Grand Parkway Transportation Corp. Rev., Series 2013 A, 5.125%, 10/1/43 | 2,205,000 | 2,405,501 |
31
Principal Amount | Value | |||||
Harris County Cultural Education Facilities Finance Corp. Rev., Series 2008 B, (The Methodist Hospital System), 5.50%, 12/1/18 | $ | 2,500,000 | $ | 2,816,625 | ||
Harris County Cultural Education Facilities Finance Corp. Rev., Series 2015-1, (Texas Children's Hospital), 5.00%, 10/1/21 | 2,200,000 | 2,607,726 | ||||
Harris County Cultural Education Facilities Finance Corp. Rev., Series 2015-1, (Texas Children's Hospital), 5.00%, 10/1/22 | 2,500,000 | 3,006,125 | ||||
Harris County Cultural Education Facilities Finance Corp. Rev., Series 2015-1, (Texas Children's Hospital), 5.00%, 10/1/23 | 1,950,000 | 2,366,383 | ||||
Harris County GO, Series 2015 A, 5.00%, 10/1/19 | 6,765,000 | 7,746,331 | ||||
Harris County Rev., Series 2009 C, 5.00%, 8/15/17 | 5,000,000 | 5,360,900 | ||||
Harris County Rev., Series 2015 B, (Senior Lien), 5.00%, 8/15/25(3) | 3,170,000 | 3,945,382 | ||||
Harris County Rev., Series 2015 B, (Senior Lien), 5.00%, 8/15/26(3) | 1,660,000 | 2,044,439 | ||||
Harris County Rev., Series 2015 B, (Senior Lien), 5.00%, 8/15/27(3) | 1,500,000 | 1,833,150 | ||||
Harris County Rev., Series 2015 B, (Senior Lien), 5.00%, 8/15/28(3) | 1,000,000 | 1,212,090 | ||||
Harris County Rev., Series 2015 B, (Senior Lien), 5.00%, 8/15/29(3) | 1,000,000 | 1,204,560 | ||||
Harris County-Houston Sports Authority Rev., Series 2014 C, (Second Lien), 5.00%, 11/15/20 | 1,220,000 | 1,397,925 | ||||
Harris County-Houston Sports Authority Rev., Series 2014 C, (Second Lien), 5.00%, 11/15/21 | 900,000 | 1,041,093 | ||||
Harris County-Houston Sports Authority Rev., Series 2014 C, (Second Lien), 5.00%, 11/15/23 | 850,000 | 1,001,071 | ||||
Harris County-Houston Sports Authority Rev., Series 2014 C, (Second Lien), 5.00%, 11/15/24 | 700,000 | 828,807 | ||||
Harris County-Houston Sports Authority Rev., Series 2014 C, (Second Lien), 5.00%, 11/15/25 | 760,000 | 892,407 | ||||
Harris County-Houston Sports Authority Rev., Series 2014 C, (Second Lien), 5.00%, 11/15/26 | 1,000,000 | 1,163,660 | ||||
Harris County-Houston Sports Authority Rev., Series 2014 C, (Second Lien), 5.00%, 11/15/27 | 510,000 | 589,494 | ||||
Harris County-Houston Sports Authority Rev., Series 2014 C, (Second Lien), 5.00%, 11/15/29 | 2,300,000 | 2,620,206 | ||||
Harris County-Houston Sports Authority Rev., Series 2014 C, (Second Lien), 5.00%, 11/15/30 | 1,000,000 | 1,132,560 | ||||
Harris County-Houston Sports Authority Rev., Series 2014 C, (Second Lien), 5.00%, 11/15/32 | 485,000 | 544,092 | ||||
Harris County-Houston Sports Authority Rev., Series 2014 C, (Second Lien), 5.00%, 11/15/33 | 1,000,000 | 1,118,560 | ||||
Houston Airport System Rev., Series 2009 A, (Senior Lien), 5.50%, 7/1/39 | 4,000,000 | 4,401,680 | ||||
Houston Airport System Rev., Series 2012 B, (Subordinate Lien), 5.00%, 7/1/23 | 2,560,000 | 3,027,405 | ||||
Houston Airport System Rev., Series 2012 B, (Subordinate Lien), 5.00%, 7/1/24 | 4,000,000 | 4,688,520 | ||||
Houston Hotel Occupancy Tax Rev., (Convention & Entertainment), 5.00%, 9/1/27 | 2,050,000 | 2,408,299 | ||||
Houston Hotel Occupancy Tax Rev., (Convention & Entertainment), 5.00%, 9/1/28 | 710,000 | 826,681 | ||||
Houston Independent School District GO, Series 2013 B, (Harris County), VRDN, 1.70%, 6/1/18 (PSF-GTD) | 14,050,000 | 14,137,953 | ||||
Lone Star College System GO, 5.00%, 8/15/19, Prerefunded at 100% of Par(1) | 2,650,000 | 3,026,856 | ||||
Lone Star College System GO, 5.00%, 8/15/21 | 1,000,000 | 1,130,120 | ||||
Love Field Airport Modernization Corp. Special Facilities Rev., (Southwest Airlines Co.), 5.25%, 11/1/40 | 2,500,000 | 2,739,125 | ||||
Lower Colorado River Authority Rev., (LCRA Transportation Services), 5.00%, 5/15/22 | 1,000,000 | 1,146,240 |
32
Principal Amount | Value | |||||
Lower Colorado River Authority Rev., (LCRA Transportation Services), 5.00%, 5/15/23 | $ | 3,435,000 | $ | 3,919,232 | ||
Lower Colorado River Authority Rev., (LCRA Transportation Services), 5.00%, 5/15/24 | 2,000,000 | 2,275,820 | ||||
Lubbock Electric Light & Power System Rev., 5.00%, 4/15/16 | 2,000,000 | 2,035,020 | ||||
Mansfield Independent School District GO, VRDN, 1.75%, 8/1/17 (PSF-GTD) | 6,305,000 | 6,388,667 | ||||
Metropolitan Transit Authority of Harris County Rev., Series 2015 B, 5.00%, 11/1/26 | 2,000,000 | 2,451,240 | ||||
Metropolitan Transit Authority of Harris County Rev., Series 2015 B, 5.00%, 11/1/27 | 3,500,000 | 4,257,540 | ||||
North Texas Tollway Authority Rev., Series 2012 A, (First Tier), 5.00%, 1/1/29 | 2,400,000 | 2,712,144 | ||||
North Texas Tollway Authority Rev., Series 2012 B, (First Tier), 5.00%, 1/1/21 | 7,615,000 | 8,882,821 | ||||
North Texas Tollway Authority Rev., Series 2012 B, (First Tier), 5.00%, 1/1/28 | 3,000,000 | 3,406,410 | ||||
North Texas Tollway Authority Rev., Series 2012 B, (First Tier), 5.00%, 1/1/30 | 6,310,000 | 7,111,812 | ||||
North Texas Tollway Authority Rev., Series 2012 B, (First Tier), 5.00%, 1/1/36 | 1,960,000 | 2,168,485 | ||||
North Texas Tollway Authority Rev., Series 2014 A, (First Tier), 5.00%, 1/1/24 | 3,475,000 | 4,163,641 | ||||
North Texas Tollway Authority Rev., Series 2015 B, 5.00%, 1/1/40 | 2,050,000 | 2,267,177 | ||||
Northside Independent School District GO, (School Building), VRDN, 1.00%, 6/1/16 (PSF-GTD) | 6,700,000 | 6,720,368 | ||||
Pasadena Independent School District GO, Series 1996 A, 6.05%, 2/15/16 (PSF-GTD) | 550,000 | 556,760 | ||||
San Antonio Electric & Gas Rev., (Junior Lien), 5.00%, 2/1/43 | 4,300,000 | 4,783,449 | ||||
San Antonio Electric & Gas Rev., Series 2012 B, (Junior Lien), VRDN, 2.00%, 12/1/15 | 3,250,000 | 3,250,130 | ||||
San Antonio GO, 5.00%, 2/1/18 | 2,650,000 | 2,888,155 | ||||
San Antonio Water System Rev., 5.00%, 5/15/17 | 2,365,000 | 2,515,130 | ||||
Tarrant County Cultural Education Facilities Finance Corp. Retirement Facility Rev., (Air Force Village Obligated Group), 5.00%, 5/15/16 | 1,000,000 | 1,012,210 | ||||
Texas GO, 5.00%, 10/1/16 | 3,355,000 | 3,487,288 | ||||
Texas GO, 5.00%, 10/1/17 | 2,225,000 | 2,399,217 | ||||
Texas Transportation Commission State Highway Fund Rev., Series 2006 A, (First Tier), 4.50%, 4/1/16 | 5,000,000 | 5,072,900 | ||||
Texas Transportation Commission State Highway Fund Rev., Series 2014 B, (First Tier), VRDN, 0.36%, 12/3/15 | 4,800,000 | 4,800,624 | ||||
Texas Water Development Board Rev., Series 2015 A, 5.00%, 4/15/28 | 3,570,000 | 4,387,173 | ||||
Texas Water Development Board Rev., Series 2015 A, 5.00%, 10/15/28 | 7,090,000 | 8,695,389 | ||||
University of North Texas Rev., Series 2009 A, (Financing System), 5.00%, 4/15/16 | 1,125,000 | 1,144,890 | ||||
University of North Texas Rev., Series 2015 A, 5.00%, 4/15/27 | 5,770,000 | 6,964,909 | ||||
Williamson County GO, Series 2004 A, (Unlimited Tax Road & Refunding Bonds), 5.00%, 2/15/19 (NATL-RE) | 1,000,000 | 1,122,940 | ||||
294,433,351 | ||||||
U.S. Virgin Islands — 0.3% | ||||||
Virgin Islands Public Finance Authority Rev., Series 2010 A, (Matching Fund Loan Note, Senior Lien), 5.00%, 10/1/25 | 5,500,000 | 6,114,570 | ||||
Virgin Islands Public Finance Authority Rev., Series 2014 C, 5.00%, 10/1/24 | 3,335,000 | 3,783,391 | ||||
9,897,961 |
33
Principal Amount | Value | |||||
Utah — 0.3% | ||||||
Utah GO, Series 2009 C, 5.00%, 7/1/18 | $ | 4,000,000 | $ | 4,426,960 | ||
Utah Transit Authority Sales Tax Rev., 5.00%, 6/15/24 | 2,900,000 | 3,388,157 | ||||
Utah Transit Authority Sales Tax Rev., 5.00%, 6/15/25 | 1,220,000 | 1,413,736 | ||||
9,228,853 | ||||||
Vermont — 0.2% | ||||||
Burlington Airport Rev., Series 2014 A, 5.00%, 7/1/24 (AGM) | 500,000 | 577,785 | ||||
Burlington Airport Rev., Series 2014 A, 5.00%, 7/1/30 (AGM) | 500,000 | 560,705 | ||||
University of Vermont & State Agricultural College Rev., 5.00%, 10/1/19 (Ambac) | 4,290,000 | 4,614,067 | ||||
5,752,557 | ||||||
Virginia — 0.6% | ||||||
Fairfax County Economic Development Authority Rev., (Silver Line Phase I), 5.00%, 4/1/36 | 1,430,000 | 1,597,367 | ||||
Greater Richmond Convention Center Authority Rev., 5.00%, 6/15/24 | 3,000,000 | 3,642,780 | ||||
Greater Richmond Convention Center Authority Rev., 5.00%, 6/15/25 | 1,660,000 | 2,028,421 | ||||
Virginia Resources Authority Clean Water Rev., (State Revolving Fund), 5.00%, 10/1/16 | 5,120,000 | 5,319,680 | ||||
Virginia Resources Authority Clean Water Rev., (State Revolving Fund), 5.00%, 10/1/19, Prerefunded at 100% of Par(1) | 4,150,000 | 4,754,572 | ||||
Virginia Small Business Financing Authority Rev., (Hampton University), 5.25%, 10/1/29 | 2,800,000 | 3,233,972 | ||||
20,576,792 | ||||||
Washington — 5.5% | ||||||
Central Puget Sound Regional Transportation Authority Rev., Series 2012 S-1, 5.00%, 11/1/16 | 2,105,000 | 2,195,557 | ||||
Central Puget Sound Regional Transportation Authority Rev., Series 2012 S-1, 5.00%, 11/1/17 | 5,875,000 | 6,353,342 | ||||
Energy Northwest Electric Rev., Series 2009 A, (Project 3), 5.25%, 7/1/18 | 3,000,000 | 3,332,010 | ||||
Energy Northwest Electric Rev., Series 2010 A, (Project 3), 5.00%, 7/1/18 | 5,115,000 | 5,648,443 | ||||
Energy Northwest Electric Rev., Series 2011 A, (Columbia Generating), 5.00%, 7/1/22 | 5,000,000 | 5,961,000 | ||||
Energy Northwest Electric Rev., Series 2014 A, (Columbia Generating), 5.00%, 7/1/18 | 2,410,000 | 2,661,339 | ||||
Energy Northwest Electric Rev., Series 2014 C, (Project 3), 5.00%, 7/1/28 | 6,945,000 | 8,341,431 | ||||
Kitsap County School District No. 303 Bainbridge Island GO, 5.00%, 6/1/16, Prerefunded at 100% of Par (NATL-RE/School Board Guarantee)(1) | 1,000,000 | 1,023,700 | ||||
Port Seattle Rev., Series 2010 B, (Intermediate Lien), 5.00%, 6/1/22 | 1,000,000 | 1,152,870 | ||||
Seattle Municipal Light & Power Rev., Series 2010 B, 5.00%, 2/1/19 | 5,000,000 | 5,612,800 | ||||
Seattle Municipal Light & Power Rev., Series 2015 B-2, VRDN, 0.69%, 12/3/15 | 11,250,000 | 11,250,000 | ||||
Seattle Water System Rev., Series 2015, 5.00%, 5/1/22 | 10,000,000 | 12,021,400 | ||||
Snohomish County Edmonds School District No. 15 GO, 5.00%, 6/1/16, Prerefunded at 100% of Par (NATL-RE/School Board Guarantee)(1) | 6,690,000 | 6,847,884 | ||||
Tacoma Electric System Rev., Series 2013 A, 5.00%, 1/1/17 | 1,500,000 | 1,573,020 | ||||
Tacoma Electric System Rev., Series 2013 A, 4.00%, 1/1/18 | 1,000,000 | 1,063,920 | ||||
Tacoma Electric System Rev., Series 2013 A, 4.00%, 1/1/19 | 2,000,000 | 2,176,140 | ||||
Tacoma Electric System Rev., Series 2013 A, 5.00%, 1/1/19 | 1,000,000 | 1,118,330 | ||||
Washington GO, Series 2011 C, (Motor Vehicle Tax-Senior 520), 5.00%, 6/1/21 | 1,650,000 | 1,955,399 | ||||
Washington GO, Series 2011 C, (Motor Vehicle Tax-Senior 520), 5.00%, 6/1/22 | 2,000,000 | 2,379,680 |
34
Principal Amount/Shares | Value | |||||
Washington GO, Series 2015 A-1, 5.00%, 8/1/29 | $ | 18,595,000 | $ | 22,423,525 | ||
Washington GO, Series R-2012 A, 5.00%, 7/1/21 | 3,375,000 | 4,005,754 | ||||
Washington GO, Series R-2012 A, 5.00%, 7/1/22 | 5,000,000 | 5,961,000 | ||||
Washington GO, Series R-2012 C, 5.00%, 7/1/23 | 3,855,000 | 4,632,592 | ||||
Washington GO, Series R-2012 C, 5.00%, 7/1/26 | 13,800,000 | 16,445,874 | ||||
Washington GO, Series R-2015 C, 5.00%, 7/1/20 | 6,105,000 | 7,114,889 | ||||
Washington GO, Series R-2015 H, 5.00%, 7/1/27 | 10,000,000 | 12,102,100 | ||||
Washington Health Care Facilities Authority Rev., Series 2006 D, (Providence Health & Services), 5.25%, 10/1/33 (AGM) | 4,500,000 | 4,947,615 | ||||
Washington Health Care Facilities Authority Rev., Series 2007 D, (Multicare Health System), VRDN, 0.01%, 12/1/15 (LOC: Barclays Bank PLC) | 18,480,000 | 18,480,000 | ||||
Washington Health Care Facilities Authority Rev., Series 2015 B, (Seattle Children's Hospital), 5.00%, 10/1/29 | 6,500,000 | 7,673,315 | ||||
Yakima County School District No. 208 West Valley GO, 5.00%, 12/1/16, Prerefunded at 100% of Par (NATL-RE/School Board Guarantee)(1) | 920,000 | 962,182 | ||||
Yakima County School District No. 208 West Valley GO, 5.00%, 12/1/16, Prerefunded at 100% of Par (NATL-RE/School Board Guarantee)(1) | 755,000 | 789,617 | ||||
188,206,728 | ||||||
Wisconsin — 1.0% | ||||||
Wisconsin GO, Series 2011-1, 5.00%, 5/1/19 | 5,000,000 | 5,662,300 | ||||
Wisconsin GO, Series 2011-1, 5.00%, 5/1/20 | 3,000,000 | 3,484,110 | ||||
Wisconsin GO, Series 2011-1, 5.00%, 5/1/21 | 2,500,000 | 2,966,750 | ||||
Wisconsin GO, Series 2015-1, 5.00%, 5/1/25 | 5,000,000 | 6,228,550 | ||||
Wisconsin GO, Series 2015-1, 5.00%, 5/1/27 | 2,750,000 | 3,349,583 | ||||
Wisconsin Health & Educational Facilities Authority Rev., (Luther Hospital), 5.50%, 11/15/22 | 4,655,000 | 5,315,358 | ||||
Wisconsin Health & Educational Facilities Authority Rev., (Luther Hospital), 5.75%, 11/15/30 | 5,800,000 | 6,560,612 | ||||
Wisconsin Transportation Rev., Series 2008 A, 5.00%, 7/1/18 | 500,000 | 553,095 | ||||
34,120,358 | ||||||
TOTAL MUNICIPAL SECURITIES (Cost $3,175,744,711) | 3,341,244,989 | |||||
TEMPORARY CASH INVESTMENTS — 1.0% | ||||||
Federated Tax-Free Obligations Fund, Institutional Shares (Cost $34,100,000) | 34,100,000 | 34,100,000 | ||||
TOTAL INVESTMENT SECURITIES — 99.3% (Cost $3,209,844,711) | 3,375,344,989 | |||||
OTHER ASSETS AND LIABILITIES — 0.7% | 24,238,586 | |||||
TOTAL NET ASSETS — 100.0% | $ | 3,399,583,575 |
35
NOTES TO SCHEDULE OF INVESTMENTS | ||
ACA | - | American Capital Access |
AGC | - | Assured Guaranty Corporation |
AGM | - | Assured Guaranty Municipal Corporation |
BAM | - | Build America Mutual Assurance Company |
COP | - | Certificates of Participation |
FGIC | - | Financial Guaranty Insurance Company |
GA | - | Guaranty Agreement |
GO | - | General Obligation |
LOC | - | Letter of Credit |
NATL-RE | - | National Public Finance Guarantee Corporation - Reinsured |
PSF-GTD | - | Permanent School Fund Guaranteed |
Q-SBLF | - | Qualified School Board Loan Fund |
SBBPA | - | Standby Bond Purchase Agreement |
VRDN | - | Variable Rate Demand Note. Interest reset date is indicated. Rate shown is effective at the period end. |
VRN | - | Variable Rate Note. Interest reset date is indicated. Rate shown is effective at the period end. |
XLCA | - | XL Capital Ltd. |
† | Category is less than 0.05% of total net assets. |
(1) | Escrowed to maturity in U.S. government securities or state and local government securities. |
(2) | Security is a zero-coupon bond. Zero-coupon securities are issued at a substantial discount from their value at maturity. |
(3) | When-issued security. The issue price and yield are fixed on the date of the commitment, but payment and delivery are scheduled for a future date. |
(4) | Coupon rate adjusts periodically based upon a predetermined schedule. Interest reset date is indicated. Rate shown is effective at the period end. |
See Notes to Financial Statements.
36
Statement of Assets and Liabilities |
NOVEMBER 30, 2015 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $3,209,844,711) | $ | 3,375,344,989 | |
Cash | 5,072,208 | ||
Receivable for investments sold | 500,000 | ||
Receivable for capital shares sold | 3,342,401 | ||
Interest receivable | 41,347,251 | ||
3,425,606,849 | |||
Liabilities | |||
Payable for investments purchased | 20,011,971 | ||
Payable for capital shares redeemed | 4,252,521 | ||
Accrued management fees | 1,008,603 | ||
Distribution and service fees payable | 27,485 | ||
Dividends payable | 722,694 | ||
26,023,274 | |||
Net Assets | $ | 3,399,583,575 | |
Net Assets Consist of: | |||
Capital paid in | $ | 3,295,247,361 | |
Distributions in excess of net investment income | (9,955 | ) | |
Accumulated net realized loss | (61,154,109 | ) | |
Net unrealized appreciation | 165,500,278 | ||
$ | 3,399,583,575 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||
Investor Class | $1,590,142,371 | 139,551,768 | $11.39 | |
Institutional Class | $1,725,117,487 | 151,372,924 | $11.40 | |
A Class | $67,655,723 | 5,936,526 | $11.40* | |
C Class | $16,667,994 | 1,463,731 | $11.39 |
*Maximum offering price $11.94 (net asset value divided by 0.955).
See Notes to Financial Statements.
37
Statement of Operations |
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2015 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Interest | $ | 51,527,798 | |
Expenses: | |||
Management fees | 6,155,269 | ||
Distribution and service fees: | |||
A Class | 84,424 | ||
C Class | 83,952 | ||
Trustees' fees and expenses | 100,106 | ||
Other expenses | 262 | ||
6,424,013 | |||
Net investment income (loss) | 45,103,785 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (3,715,618 | ) | |
Futures contract transactions | 569,130 | ||
(3,146,488 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 20,422,967 | ||
Futures contracts | 390,823 | ||
20,813,790 | |||
Net realized and unrealized gain (loss) | 17,667,302 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 62,771,087 |
See Notes to Financial Statements.
38
Statement of Changes in Net Assets |
SIX MONTHS ENDED NOVEMBER 30, 2015 (UNAUDITED) AND YEAR ENDED MAY 31, 2015 | ||||||
Increase (Decrease) in Net Assets | November 30, 2015 | May 31, 2015 | ||||
Operations | ||||||
Net investment income (loss) | $ | 45,103,785 | $ | 91,722,741 | ||
Net realized gain (loss) | (3,146,488 | ) | (24,470,046 | ) | ||
Change in net unrealized appreciation (depreciation) | 20,813,790 | (8,574,223 | ) | |||
Net increase (decrease) in net assets resulting from operations | 62,771,087 | 58,678,472 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (20,554,443) | (44,349,779) | ||||
Institutional Class | (23,632,051) | (45,737,990) | ||||
A Class | (785,099) | (1,351,799) | ||||
C Class | (132,192) | (283,183) | ||||
Decrease in net assets from distributions | (45,103,785) | (91,722,751) | ||||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (3,832,097 | ) | 92,005,181 | |||
Net increase (decrease) in net assets | 13,835,205 | 58,960,902 | ||||
Net Assets | ||||||
Beginning of period | 3,385,748,370 | 3,326,787,468 | ||||
End of period | $ | 3,399,583,575 | $ | 3,385,748,370 | ||
Distributions in excess of net investment income | $ | (9,955 | ) | $ | (9,955 | ) |
See Notes to Financial Statements.
39
Notes to Financial Statements |
NOVEMBER 30, 2015 (UNAUDITED)
1. Organization
American Century Municipal Trust (the trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Massachusetts business trust. Intermediate-Term Tax-Free Bond Fund (the fund) is one fund in a series issued by the trust. The fund is diversified as defined under the 1940 Act. The fund’s investment objective is to seek safety of principal and high current income that is exempt from federal income tax.
The fund offers the Investor Class, the Institutional Class, the A Class and the C Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. The share classes differ principally in their respective sales charges and distribution and shareholder servicing expenses and arrangements. The Institutional Class is made available to institutional shareholders or through financial intermediaries whose clients do not require the same level of shareholder and administrative services as shareholders of other classes. As a result, the Institutional Class is charged a lower unified management fee.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Trustees has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Fixed income securities maturing in greater than 60 days at the time of purchase are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Fixed income securities maturing within 60 days at the time of purchase may be valued at cost, plus or minus any amortized discount or premium or at the evaluated mean as provided by an independent pricing service. Evaluated mean prices are commonly derived through utilization of market models, which may consider, among other factors: trade data, quotations from dealers and active market makers, relevant yield curve and spread data, related sector levels, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
Open-end management investment companies are valued at the reported net asset value per share. Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate clearing corporation.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Trustees or its delegate, in accordance with policies and procedures adopted by the Board of Trustees. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited
40
to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investments, including, but not limited to, futures contracts and when-issued securities. American Century Investment Management, Inc. (ACIM) (the investment advisor) monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for margin requirements on futures contracts.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized gains, if any, are generally declared and paid annually.
Indemnifications — Under the trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and trustees of the trust are also officers and/or directors of American Century Companies, Inc. (ACC). The trust's investment advisor, ACIM, the trust's distributor, American Century Investment Services, Inc. (ACIS), and the trust's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The trust has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent trustees (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds. The rates for the Investment Category Fee range from 0.1625% to 0.2800%. The rates for the Complex Fee range from 0.2500% to 0.3100% for the Investor Class, A Class and C Class. The rates for the Complex Fee range from 0.0500% to 0.1100% for the Institutional Class. The effective annual management fee for each class for the six months ended November 30, 2015 was 0.47% for the Investor Class, A Class and C Class and 0.27% for the Institutional Class.
41
Distribution and Service Fees — The Board of Trustees has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class and C Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the six months ended November 30, 2015 are detailed in the Statement of Operations.
Trustees’ Fees and Expenses — The Board of Trustees is responsible for overseeing the investment advisor’s management and operations of the fund. The trustees receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the six months ended November 30, 2015 were $464,318,084 and $536,471,124, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows (unlimited number of shares authorized):
Six months ended November 30, 2015 | Year ended May 31, 2015 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class | ||||||||||
Sold | 10,778,709 | $ | 122,171,005 | 26,427,631 | $ | 302,461,859 | ||||
Issued in reinvestment of distributions | 1,633,380 | 18,541,777 | 3,434,269 | 39,309,682 | ||||||
Redeemed | (16,220,092 | ) | (183,735,756 | ) | (39,702,795 | ) | (454,522,750 | ) | ||
(3,808,003 | ) | (43,022,974 | ) | (9,840,895 | ) | (112,751,209 | ) | |||
Institutional Class | ||||||||||
Sold | 18,973,848 | 214,974,519 | 44,756,588 | 511,953,520 | ||||||
Issued in reinvestment of distributions | 1,868,372 | 21,212,777 | 3,590,175 | 41,103,949 | ||||||
Redeemed | (17,387,868 | ) | (197,047,603 | ) | (32,497,479 | ) | (371,891,886 | ) | ||
3,454,352 | 39,139,693 | 15,849,284 | 181,165,583 | |||||||
A Class | ||||||||||
Sold | 794,443 | 9,005,337 | 3,806,951 | 43,677,589 | ||||||
Issued in reinvestment of distributions | 67,831 | 770,116 | 115,268 | 1,319,829 | ||||||
Redeemed | (820,725 | ) | (9,300,455 | ) | (1,807,799 | ) | (20,668,605 | ) | ||
41,549 | 474,998 | 2,114,420 | 24,328,813 | |||||||
C Class | ||||||||||
Sold | 73,358 | 830,452 | 257,721 | 2,944,261 | ||||||
Issued in reinvestment of distributions | 8,675 | 98,427 | 18,449 | 211,036 | ||||||
Redeemed | (119,520 | ) | (1,352,693 | ) | (340,823 | ) | (3,893,303 | ) | ||
(37,487 | ) | (423,814 | ) | (64,653 | ) | (738,006 | ) | |||
Net increase (decrease) | (349,589 | ) | $ | (3,832,097 | ) | 8,058,156 | $ | 92,005,181 |
42
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Municipal Securities | — | $ | 3,341,244,989 | — | ||||
Temporary Cash Investments | $ | 34,100,000 | — | — | ||||
$ | 34,100,000 | $ | 3,341,244,989 | — |
7. Derivative Instruments
Interest Rate Risk — The fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The value of bonds generally declines as interest rates rise. A fund may enter into futures contracts based on a bond index or a specific underlying security. A fund may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, a fund will segregate cash, cash equivalents or other appropriate liquid securities on its records in amounts sufficient to meet requirements. Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the futures contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average exposure to interest rate risk derivative instruments held during the period was 270 contracts.
At period end, the fund did not have any derivative instruments disclosed on the Statement of Assets and Liabilities. For the six months ended November 30, 2015, the effect of interest rate risk derivative instruments on the Statement of Operations was $569,130 in net realized gain (loss) on futures contract transactions and $390,823 in change in net unrealized appreciation (depreciation) on futures contracts.
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8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of November 30, 2015, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 3,209,844,711 | |
Gross tax appreciation of investments | $ | 169,742,364 | |
Gross tax depreciation of investments | (4,242,086) | ||
Net tax appreciation (depreciation) of investments | $ | 165,500,278 |
The cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes.
As of May 31, 2015, the fund had accumulated short-term capital losses of $(26,888,126) and accumulated long-term capital losses of $(30,935,980), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended May 31 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||||||
2015(3) | $11.33 | 0.15 | 0.06 | 0.21 | (0.15) | — | (0.15) | $11.39 | 1.83% | 0.47%(4) | 0.47%(4) | 2.58%(4) | 2.58%(4) | 14% | $1,590,142 | ||
2015 | $11.45 | 0.30 | (0.12) | 0.18 | (0.30) | — | (0.30) | $11.33 | 1.59% | 0.47% | 0.47% | 2.64% | 2.64% | 34% | $1,624,982 | ||
2014 | $11.61 | 0.29 | (0.12) | 0.17 | (0.29) | (0.04) | (0.33) | $11.45 | 1.55% | 0.47% | 0.47% | 2.61% | 2.61% | 41% | $1,753,597 | ||
2013 | $11.63 | 0.29 | (0.01) | 0.28 | (0.29) | (0.01) | (0.30) | $11.61 | 2.43% | 0.47% | 0.47% | 2.44% | 2.44% | 58% | $2,040,120 | ||
2012 | $11.06 | 0.33 | 0.57 | 0.90 | (0.33) | — | (0.33) | $11.63 | 8.28% | 0.47% | 0.47% | 2.91% | 2.91% | 62% | $1,963,542 | ||
2011 | $11.09 | 0.39 | (0.03) | 0.36 | (0.39) | — | (0.39) | $11.06 | 3.31% | 0.47% | 0.48% | 3.53% | 3.52% | 14% | $1,717,930 | ||
Institutional Class | |||||||||||||||||
2015(3) | $11.34 | 0.16 | 0.06 | 0.22 | (0.16) | — | (0.16) | $11.40 | 1.93% | 0.27%(4) | 0.27%(4) | 2.78%(4) | 2.78%(4) | 14% | $1,725,117 | ||
2015 | $11.45 | 0.32 | (0.11) | 0.21 | (0.32) | — | (0.32) | $11.34 | 1.89% | 0.27% | 0.27% | 2.84% | 2.84% | 34% | $1,676,931 | ||
2014 | $11.61 | 0.32 | (0.12) | 0.20 | (0.32) | (0.04) | (0.36) | $11.45 | 1.76% | 0.27% | 0.27% | 2.81% | 2.81% | 41% | $1,511,995 | ||
2013 | $11.64 | 0.31 | (0.02) | 0.29 | (0.31) | (0.01) | (0.32) | $11.61 | 2.55% | 0.27% | 0.27% | 2.64% | 2.64% | 58% | $1,939,174 | ||
2012 | $11.06 | 0.35 | 0.59 | 0.94 | (0.36) | — | (0.36) | $11.64 | 8.59% | 0.27% | 0.27% | 3.11% | 3.11% | 62% | $1,447,044 | ||
2011 | $11.09 | 0.41 | (0.03) | 0.38 | (0.41) | — | (0.41) | $11.06 | 3.51% | 0.27% | 0.28% | 3.73% | 3.72% | 14% | $245,759 |
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For a Share Outstanding Throughout the Years Ended May 31 (except as noted) | |||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | |||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||||||
2015(3) | $11.34 | 0.13 | 0.06 | 0.19 | (0.13) | — | (0.13) | $11.40 | 1.70% | 0.72%(4) | 0.72%(4) | 2.33%(4) | 2.33%(4) | 14% | $67,656 | ||
2015 | $11.45 | 0.27 | (0.11) | 0.16 | (0.27) | — | (0.27) | $11.34 | 1.43% | 0.72% | 0.72% | 2.39% | 2.39% | 34% | $66,830 | ||
2014 | $11.61 | 0.27 | (0.12) | 0.15 | (0.27) | (0.04) | (0.31) | $11.45 | 1.30% | 0.72% | 0.72% | 2.36% | 2.36% | 41% | $43,283 | ||
2013 | $11.64 | 0.26 | (0.02) | 0.24 | (0.26) | (0.01) | (0.27) | $11.61 | 2.09% | 0.72% | 0.72% | 2.19% | 2.19% | 58% | $78,349 | ||
2012 | $11.06 | 0.30 | 0.59 | 0.89 | (0.31) | — | (0.31) | $11.64 | 8.11% | 0.72% | 0.72% | 2.66% | 2.66% | 62% | $65,158 | ||
2011 | $11.09 | 0.36 | (0.03) | 0.33 | (0.36) | — | (0.36) | $11.06 | 3.05% | 0.72% | 0.73% | 3.28% | 3.27% | 14% | $30,930 | ||
C Class | |||||||||||||||||
2015(3) | $11.33 | 0.09 | 0.06 | 0.15 | (0.09) | — | (0.09) | $11.39 | 1.32% | 1.47%(4) | 1.47%(4) | 1.58%(4) | 1.58%(4) | 14% | $16,668 | ||
2015 | $11.44 | 0.19 | (0.11) | 0.08 | (0.19) | — | (0.19) | $11.33 | 0.67% | 1.47% | 1.47% | 1.64% | 1.64% | 34% | $17,005 | ||
2014 | $11.60 | 0.18 | (0.12) | 0.06 | (0.18) | (0.04) | (0.22) | $11.44 | 0.54% | 1.47% | 1.47% | 1.61% | 1.61% | 41% | $17,912 | ||
2013 | $11.63 | 0.17 | (0.02) | 0.15 | (0.17) | (0.01) | (0.18) | $11.60 | 1.33% | 1.47% | 1.47% | 1.44% | 1.44% | 58% | $25,592 | ||
2012 | $11.05 | 0.22 | 0.58 | 0.80 | (0.22) | — | (0.22) | $11.63 | 7.30% | 1.47% | 1.47% | 1.91% | 1.91% | 62% | $19,155 | ||
2011 | $11.08 | 0.28 | (0.03) | 0.25 | (0.28) | — | (0.28) | $11.05 | 2.28% | 1.47% | 1.48% | 2.53% | 2.52% | 14% | $9,005 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended November 30, 2015 (unaudited). |
(4) | Annualized. |
See Notes to Financial Statements.
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Approval of Management Agreement |
At a meeting held on June 16, 2015, the Fund’s Board of Trustees unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s directors/trustees, including a majority of the independent Trustees, each year. The Board regards this annual evaluation and renewal as one of its most important responsibilities.
The independent Trustees have memorialized a statement regarding the relationship between their ongoing obligations to oversee and evaluate the performance of the Advisor and their annual consideration of renewal of the management agreement. In that statement, the independent Trustees noted that their assessment of the Advisor’s performance is an ongoing process that takes place over the entire year and is informed by all of the extensive information that the Board and its committees receive and consider over time. This information, together with the materials provided in connection with the review, are central to the Board’s assessment of the Advisor’s performance and its determination whether to renew the Fund’s management agreement.
Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and analysis relating to the proposed renewal. This information and analysis was compiled by the Advisor and certain independent providers of evaluation data concerning the Fund and the services provided to the Fund by the Advisor.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor included, but was not limited to, the following:
• | the nature, extent, and quality of investment management, shareholder services, and other services provided by the Advisor to the Fund; |
• | the wide range of other programs and services the Advisor provides to the Fund and its shareholders on a routine and non-routine basis; |
• | the investment performance of the Fund, including data comparing the Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies; |
• | the cost of owning the Fund compared to the cost of owning similar funds; |
• | the compliance policies, procedures, and regulatory experience of the Fund's service providers; |
• | financial data showing the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the overall profitability of the Advisor; |
• | possible economies of scale associated with the Advisor’s management of the Fund and other accounts under its management; |
• | data comparing services provided and charges to the Advisor's other investment management clients; |
• | acquired fund fees and expenses; |
• | payments by the Fund and the Advisor to financial intermediaries; and |
• | any collateral benefits derived by the Advisor from the management of the Fund. |
In keeping with its practice, the Board held two in-person meetings to review and discuss the information provided in response to their request. The independent Trustees also had the benefit of the advice of their independent counsel throughout the process.
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Factors Considered
The Trustees considered all of the information provided by the Advisor, the independent data providers, and the independent Trustees’ independent counsel in connection with the review. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Trustees did not identify any single factor as being all-important or controlling and each Trustee may have attributed different levels of importance to different factors. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:
Nature, Extent and Quality of Services - Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that under the management agreement, the Advisor provides or arranges at its own expense a wide variety of services including:
• | constructing and designing the Fund |
• | portfolio research and security selection |
• | initial capitalization/funding |
• | securities trading |
• | Fund administration |
• | custody of Fund assets |
• | daily valuation of the Fund’s portfolio |
• | shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications |
• | legal services (except the independent Trustees’ counsel) |
• | regulatory and portfolio compliance |
• | financial reporting |
• | marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans) |
The Board noted that many of these services have expanded over time both in terms of quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management, Shareholder, and Other Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and approved strategies. Further, the Trustees recognize that the Advisor has an obligation to seek the best execution of fund trades. In providing these services, the Advisor utilizes teams of investment professionals (portfolio managers, analysts, research assistants, and securities traders) who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Portfolio Committee, regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Trustees also review detailed performance information during the management agreement approval process. If performance concerns are identified, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The Fund’s performance was below its benchmark for the one-, three-, five-, and ten-year periods reviewed by the Board. The Board discussed the Fund’s performance with the Advisor and was satisfied with the efforts being undertaken by the Advisor. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
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Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities.
Certain aspects of shareholder and transfer agency service level efficiency and the quality of securities trading activities are measured by independent third party providers and are presented in comparison to other fund groups not managed by the Advisor. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund, its overall profitability, and its financial condition. The Trustees have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the current management fee. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders enhanced and expanded services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, taxes, interest, extraordinary expenses, the fees and expenses of the Fund’s independent Trustees (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing, and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unified fee to the total expense ratio of peer funds. The unified fee charged to shareholders of the Fund was below the median of the total expense ratios of the Fund’s peer group. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
49
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Trustees also requested and received a description of payments made to intermediaries by the Fund and the Advisor. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. The Board noted that the Advisor’s primary business is managing mutual funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor receives proprietary research from broker-dealers that execute fund portfolio transactions. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Trustees. As a result of this process, the Board, including all of the independent Trustees and assisted by the advice of independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and throughout the year, concluded that the management agreement between the Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.
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Additional Information |
Proxy Voting Policies
Descriptions of the principles and policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund are available without charge, upon request, by calling 1-800-345-2021 or visiting the "About Us" page of American Century Investments’ website at americancentury.com. A description of the policies is also available on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
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Notes |
52
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century Municipal Trust | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2016 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-87763 1601 |
SEMIANNUAL REPORT | NOVEMBER 30, 2015 |
Long-Term Tax-Free Fund
Table of Contents |
President’s Letter | 2 | |
Performance | 3 | |
Fund Characteristics | ||
Shareholder Fee Example | ||
Schedule of Investments | ||
Statement of Assets and Liabilities | ||
Statement of Operations | ||
Statement of Changes in Net Assets | ||
Notes to Financial Statements | ||
Financial Highlights | ||
Approval of Management Agreement | ||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
Dear Investor: Thank you for reviewing this semiannual report for the six months ended November 30, 2015. It provides a macroeconomic and financial market overview (below), followed by fund performance, a schedule of fund investments, and other financial information. For additional commentary and updated information on fund performance, key factors that affected asset returns, and other insights regarding the investment markets, we encourage you to visit our website, americancentury.com. | |
Jonathan Thomas |
Municipal Bonds (Munis) Outperformed During a Volatile Period
Widespread concerns about economic growth (especially in China) and central bank monetary policy decisions helped spark sharp financial market volatility during the reporting period. China’s challenges and events included a stock market crash, a sudden currency devaluation, and massive monetary policy intervention by its central bank. These events rippled through the global markets from July through September, contributing to the decision by the U.S. Federal Reserve (the Fed) in September to delay raising its short-term interest rate target for fear of further roiling the markets. However, the Fed indicated in October that it could still raise rates by year end. This environment made it difficult to produce positive investment returns—the S&P 500 Index and the Barclays U.S. Aggregate Bond Index returned -0.21% and -0.12%, respectively, for the six months.
Meanwhile, munis outperformed. Despite default threats in Puerto Rico and financial concerns facing the city of Chicago and the states of Illinois and New Jersey, the broader muni market was viewed as a relative bastion of stability because of its comparatively high overall credit quality. Investors also focused on munis because this sector has historically performed relatively well in periods of rising interest rates, particularly if the rate increases reflect stronger economic conditions. The Barclays Municipal Bond Index advanced 2.37% for the six months.
After the reporting period, the Fed finally began the process of gradually increasing its overnight interest rate target. But we don’t expect a big increase in intermediate- to longer-maturity bond yields in the near term because of deflationary threats and other headwinds still facing the global economy. We believe the Fed’s moves (and conjecture about these moves) will be accompanied by further market volatility. This could present both challenges and opportunities for active investment managers. In this environment, we continue to believe in a disciplined, diversified, long-term investment approach, using professionally managed stock and bond portfolios to meet financial goals. We appreciate your continued trust in us.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Performance |
Total Returns as of November 30, 2015 | |||||||
Average Annual Returns | |||||||
Ticker Symbol | 6 months(1) | 1 year | 5 years | 10 years | Since Inception | Inception Date | |
A Class | MMBAX | 3/31/97 | |||||
No sales charge* | 2.01% | 2.46% | 4.19% | 4.11%(2) | 4.98%(2) | ||
With sales charge* | -2.59% | -2.19% | 3.24% | 3.63%(2) | 4.72%(2) | ||
Barclays Municipal Bond Index | — | 2.37% | 3.10% | 4.79% | 4.73% | 5.32% | — |
Investor Class | ACLVX | 2.05% | 2.63% | 4.45% | — | 4.43% | 4/3/06 |
Institutional Class | ACLSX | 2.15% | 2.92% | 4.66% | — | 4.64% | 4/3/06 |
C Class | ACTCX | 4/3/06 | |||||
No sales charge* | 1.54% | 1.70% | 3.41% | — | 3.40% | ||
With sales charge* | 0.54% | 1.70% | 3.41% | — | 3.40% |
* Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 4.50% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Long-Term Tax-Free acquired all the net assets of the Mason Street Municipal Bond Fund on March 31, 2006, pursuant to a plan of reorganization approved by the acquired fund’s shareholders on March 15, 2006. Performance information prior to April 1, 2006 is that of the Mason Street Municipal Bond Fund.
(1) | Total returns for periods less than one year are not annualized. |
(2) | Returns would have been lower if a portion of the fees had not been waived. |
Total Annual Fund Operating Expenses | |||
Investor Class | Institutional Class | A Class | C Class |
0.47% | 0.27% | 0.72% | 1.47% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
3
Fund Characteristics |
NOVEMBER 30, 2015 | |
Portfolio at a Glance | |
Weighted Average Maturity | 15.6 years |
Average Duration (Modified) | 4.7 years |
Top Five Sectors | % of fund investments |
Hospital | 13% |
Tollroads | 11% |
General Obligation (GO) - State | 10% |
Lease Revenue | 8% |
Prerefunded | 8% |
Top Five States and Territories | % of net assets |
California | 21.1% |
New York | 16.8% |
Texas | 8.6% |
Illinois | 5.6% |
Florida | 4.8% |
Types of Investments in Portfolio | % of net assets |
Municipal Securities | 96.6% |
Temporary Cash Investments | 3.0% |
Other Assets and Liabilities | 0.4% |
4
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from June 1, 2015 to November 30, 2015.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
5
Beginning Account Value 6/1/15 | Ending Account Value 11/30/15 | Expenses Paid During Period(1) 6/1/15 - 11/30/15 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,020.50 | $2.37 | 0.47% |
Institutional Class | $1,000 | $1,021.50 | $1.36 | 0.27% |
A Class | $1,000 | $1,020.10 | $3.64 | 0.72% |
C Class | $1,000 | $1,015.40 | $7.41 | 1.47% |
Hypothetical | ||||
Investor Class | $1,000 | $1,022.65 | $2.38 | 0.47% |
Institutional Class | $1,000 | $1,023.65 | $1.37 | 0.27% |
A Class | $1,000 | $1,021.40 | $3.64 | 0.72% |
C Class | $1,000 | $1,017.65 | $7.41 | 1.47% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, to reflect the one-half year period. |
6
Schedule of Investments |
NOVEMBER 30, 2015 (UNAUDITED)
Principal Amount | Value | |||||
MUNICIPAL SECURITIES — 96.6% | ||||||
Arizona — 2.5% | ||||||
Arizona Health Facilities Authority Rev., Series 2015 A, (Banner Health), 5.00%, 1/1/25 | $ | 20,000 | $ | 24,386 | ||
City of Mesa Excise Tax Rev., 5.00%, 7/1/27 | 100,000 | 106,154 | ||||
Mohave County Industrial Development Authority Correctional Facilities Contract Rev., (Mohave Prison, LLC Expansion), 8.00%, 5/1/25 | 200,000 | 221,312 | ||||
Phoenix Civic Improvement Corp. Airport Rev., Series 2010 A, (Junior Lien), 5.00%, 7/1/40 | 50,000 | 55,649 | ||||
Phoenix Civic Improvement Corp. Excise Tax Rev., Series 2015 A, 5.00%, 7/1/22 | 25,000 | 30,138 | ||||
Phoenix Civic Improvement Corp. Wastewater System Rev., (Senior Lien), 5.50%, 7/1/24 | 250,000 | 278,387 | ||||
Salt River Project Agricultural Improvement & Power District Rev., Series 2009 A, (Electric System Distribution), 5.00%, 1/1/39 | 340,000 | 374,452 | ||||
University Medical Center Corp. Rev., 6.50%, 7/1/19, Prerefunded at 100% of Par(1) | 300,000 | 355,818 | ||||
1,446,296 | ||||||
Arkansas — 0.4% | ||||||
Pulaski County Public Facilities Board Rev., 5.00%, 12/1/42 | 200,000 | 219,352 | ||||
California — 21.1% | ||||||
Alameda Corridor Transportation Authority Rev., Capital Appreciation, Series 1999 A, 0.00%, 10/1/32 (NATL-RE)(2) | 440,000 | 227,181 | ||||
Anaheim Public Financing Authority Rev., Series 2009 A, (Electric System Distribution), 5.25%, 10/1/34 | 200,000 | 222,742 | ||||
Anaheim Public Financing Authority Rev., Series 2014 A, (Anaheim Convention Center Expansion Project), 5.00%, 5/1/46 | 300,000 | 337,647 | ||||
Bay Area Toll Authority Toll Bridge Rev., Series 2009 F-1, (San Francisco Bay Area), 5.125%, 4/1/19, Prerefunded at 100% of Par(1) | 200,000 | 227,002 | ||||
Bay Area Toll Authority Toll Bridge Rev., Series 2014 B, (San Francisco Bay Area), VRDN, 1.50%, 4/2/18 | 30,000 | 30,234 | ||||
California Department of Water Resources Power Supply Rev., Series 2005 G-4, 5.00%, 5/1/16 | 100,000 | 102,023 | ||||
California Department of Water Resources Power Supply Rev., Series 2015 O, 5.00%, 5/1/21 | 240,000 | 286,186 | ||||
California GO, 5.00%, 9/1/25 | 150,000 | 166,943 | ||||
California GO, 5.625%, 4/1/26 | 500,000 | 574,435 | ||||
California GO, 5.00%, 12/1/26 | 200,000 | 243,630 | ||||
California GO, 5.75%, 4/1/27 | 500,000 | 576,125 | ||||
California GO, 5.00%, 2/1/28 (Ambac) | 335,000 | 422,629 | ||||
California GO, 5.75%, 4/1/28 | 500,000 | 576,125 | ||||
California GO, 5.25%, 9/1/28 | 200,000 | 236,942 | ||||
California GO, 5.00%, 10/1/41 | 100,000 | 112,857 | ||||
California GO, 5.00%, 2/1/43 | 250,000 | 283,407 | ||||
California GO, Series 2012 B, VRN, 1.16%, 12/3/15 | 200,000 | 203,472 | ||||
California Health Facilities Financing Authority Rev., Series 2008 C, (Providence Health & Services), 6.50%, 10/1/18, Prerefunded at 100% of Par(1) | 10,000 | 11,561 |
7
Principal Amount | Value | |||||
California Health Facilities Financing Authority Rev., Series 2008 C, (Providence Health & Services), 6.50%, 10/1/18, Prerefunded at 100% of Par(1) | $ | 245,000 | $ | 283,254 | ||
California Health Facilities Financing Authority Rev., Series 2009 A, (Catholic Healthcare West), 6.00%, 7/1/39 | 300,000 | 342,327 | ||||
California Health Facilities Financing Authority Rev., Series 2011 D, (Sutter Health), 5.25%, 8/15/31 | 150,000 | 174,674 | ||||
California Health Facilities Financing Authority Rev., Series 2012 A, (Scripps Health), 5.00%, 11/15/40 | 200,000 | 223,176 | ||||
California Health Facilities Financing Authority Rev., Series 2013 A, (St. Joseph Health System), 5.00%, 7/1/37 | 35,000 | 39,998 | ||||
California Health Facilities Financing Authority Rev., Series 2015, (Cedars-Sinai Medical Center), 5.00%, 11/15/32 | 100,000 | 118,050 | ||||
California Infrastructure & Economic Development Bank Rev., (Academy Motion Picture Arts and Sciences Obligated Group), 5.00%, 11/1/41 | 10,000 | 11,332 | ||||
California Municipal Finance Authority Rev., Series 2015 A, (Community Medical Centers), 5.00%, 2/1/27 | 250,000 | 286,357 | ||||
California Public Works Board Lease Rev., Series 2011 D, (Judicial Council Projects), 5.00%, 12/1/31 | 250,000 | 288,552 | ||||
California Public Works Board Lease Rev., Series 2012 A, (Various Capital Projects), 5.00%, 4/1/37 | 320,000 | 360,800 | ||||
California Public Works Board Lease Rev., Series 2012 D, (California State University Projects), 5.00%, 9/1/36 | 100,000 | 113,842 | ||||
California Statewide Communities Development Authority Rev., Series 2012 A, (Kaiser Permanente), 5.00%, 4/1/42 | 400,000 | 446,568 | ||||
California University Systemwide Rev., Series 2009 A, 5.25%, 11/1/34 | 300,000 | 338,007 | ||||
Chaffey Community College District GO, Series 2007 C, (Election of 2002), 5.00%, 6/1/17, Prerefunded at 100% of Par (NATL-RE)(1) | 265,000 | 282,445 | ||||
Clovis Unified School District GO, Capital Appreciation, Series 2004 A, 0.00%, 8/1/29 (NATL-RE)(2) | 300,000 | 199,284 | ||||
Foothill / Eastern Transportation Corridor Agency Toll Road Rev., Series 2013 A, 6.00%, 1/15/49 | 100,000 | 117,542 | ||||
Foothill / Eastern Transportation Corridor Agency Toll Road Rev., Series 2013 B-3, VRDN, 5.50%, 1/15/23 | 100,000 | 115,403 | ||||
Foothill / Eastern Transportation Corridor Agency Toll Road Rev., Capital Appreciation, Series 2015 A, 0.00%, 1/15/33(2) | 150,000 | 66,968 | ||||
Golden State Tobacco Securitization Corp. Settlement Rev., Series 2013 A, 5.00%, 6/1/30 | 100,000 | 115,014 | ||||
Inland Valley Development Agency Tax Allocation Rev., Series 2014 A, 5.00%, 9/1/44 | 200,000 | 218,038 | ||||
Los Angeles Department of Airports Rev., Series 2010 A, (Los Angeles International Airport), 5.00%, 5/15/40 | 120,000 | 135,773 | ||||
Los Angeles Department of Water & Power System Rev., Series 2008 A-1, 5.25%, 7/1/38 | 400,000 | 438,604 | ||||
Los Angeles Department of Water & Power System Rev., Series 2011 A, 5.00%, 7/1/36 | 150,000 | 173,070 | ||||
Metropolitan Water District of Southern California Rev., Series 2009 C, 5.00%, 7/1/35 | 100,000 | 112,755 | ||||
Northern California Power Agency Rev., Series 2009 A, (Geothermal Project No. 3), 5.25%, 7/1/24 | 200,000 | 227,258 | ||||
Oakland Unified School District Alameda County GO, Series 2013, (Election of 2012), 6.625%, 8/1/38 | 50,000 | 61,290 | ||||
Oakland Unified School District Alameda County GO, Series 2015 A, 5.00%, 8/1/40 | 100,000 | 110,997 | ||||
Palomar Pomerado Health Care District COP, 6.00%, 11/1/41 | 250,000 | 265,692 |
8
Principal Amount | Value | |||||
Poway Unified School District GO, Capital Appreciation, (School Facilities Improvement), 0.00%, 8/1/33(2) | $ | 250,000 | $ | 125,795 | ||
Poway Unified School District GO, Capital Appreciation, (School Facilities Improvement), 0.00%, 8/1/41(2) | 500,000 | 171,380 | ||||
Riverside County Transportation Commission Rev., Series 2013 A, (Limited Tax), 5.25%, 6/1/39 | 200,000 | 232,804 | ||||
San Buenaventura Rev., (Community Memorial Health System), 7.50%, 12/1/41 | 100,000 | 121,760 | ||||
San Diego County Regional Transportation Commission Rev., Series 2012 A, 5.00%, 4/1/48 | 150,000 | 166,548 | ||||
San Diego Public Facilities Financing Authority Lease Rev., Series 2015 A, (Capital Improvement Projects), 5.00%, 10/15/44 | 100,000 | 112,340 | ||||
San Diego Public Facilities Financing Water Authority Rev., Series 2010 A, 5.00%, 8/1/23 | 70,000 | 81,316 | ||||
San Diego Unified School District GO, Capital Appreciation, Series 2012 R-1, 0.00%, 7/1/30(2) | 200,000 | 119,622 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., Series 2014 A, (Senior Lien), 5.00%, 1/15/29 | 100,000 | 110,844 | ||||
Successor Agency to the Richmond County Redevelopment Agency Tax Allocation Rev., Series 2014 A, 4.00%, 9/1/16 (BAM) | 10,000 | 10,252 | ||||
Successor Agency to the Richmond County Redevelopment Agency Tax Allocation Rev., Series 2014 A, 4.00%, 9/1/17 (BAM) | 5,000 | 5,255 | ||||
Successor Agency to the Richmond County Redevelopment Agency Tax Allocation Rev., Series 2014 A, 4.00%, 9/1/18 (BAM) | 10,000 | 10,714 | ||||
Tuolumne Wind Project Authority Rev., Series 2009 A, 5.875%, 1/1/29 | 250,000 | 285,630 | ||||
12,062,471 | ||||||
Colorado — 3.3% | ||||||
Colorado Health Facilities Authority Rev., Series 2008 D, (Catholic Health Initiatives), 6.25%, 10/1/33 | 240,000 | 269,856 | ||||
Colorado Health Facilities Authority Rev., Series 2015, (Valley View Hospital Association), 5.00%, 5/15/45(3) | 80,000 | 87,650 | ||||
Colorado Health Facilities Authority Rev., Series 2015 A, (Covenant Retirement Communities, Inc.), 5.00%, 12/1/35 | 250,000 | 268,885 | ||||
Denver City and County Airport Rev., Series 2012 B, 5.00%, 11/15/25 | 250,000 | 297,330 | ||||
Denver City and County Airport Rev., Series 2013 B, 5.00%, 11/15/43 | 100,000 | 111,442 | ||||
Denver Health & Hospital Authority Rev., Series 2014 A, 5.00%, 12/1/39 | 200,000 | 216,070 | ||||
E-470 Public Highway Authority Rev., Series 2014 A, VRDN, 1.19%, 12/3/15 | 150,000 | 149,528 | ||||
Regional Transportation District Private Activity Rev., (Denver Transit Partners), 6.00%, 1/15/41 | 220,000 | 247,405 | ||||
University of Colorado Enterprise System Rev., Series 2009 A, 5.25%, 6/1/19, Prerefunded at 100% of Par(1) | 200,000 | 228,344 | ||||
1,876,510 | ||||||
Connecticut — 0.1% | ||||||
Connecticut Special Tax Obligation Rev., Series 2015 A, 5.00%, 8/1/28 | 30,000 | 36,122 | ||||
Delaware — 0.2% | ||||||
New Castle County GO, Series 2009 A, 5.00%, 7/15/18, Prerefunded at 100% of Par(1) | 100,000 | 110,454 | ||||
District of Columbia — 1.3% | ||||||
District of Columbia Rev., Series 2011 G, (Income Tax Secured), 5.00%, 12/1/36 | 300,000 | 345,507 | ||||
Washington Metropolitan Area Transit Authority Rev., Series 2009 A, 5.00%, 7/1/17 | 400,000 | 427,148 | ||||
772,655 |
9
Principal Amount | Value | |||||
Florida — 4.8% | ||||||
Brevard County Health Facilities Authority Rev., (Health First, Inc.), 5.00%, 4/1/39 | $ | 250,000 | $ | 273,212 | ||
Broward County Airport System Rev., Series 2012 Q-1, 5.00%, 10/1/24 | 100,000 | 117,678 | ||||
Broward County School Board COP, Series 2012 A, 5.00%, 7/1/26 | 200,000 | 228,882 | ||||
Florida Board of Education Capital Outlay GO, Series 2007 G, 4.75%, 6/1/37 (NATL-RE) | 250,000 | 263,915 | ||||
Florida Board of Education Capital Outlay GO, Series 2011 B, 5.125%, 6/1/40 | 300,000 | 342,132 | ||||
Florida's Turnpike Enterprise Rev., Series 2015 B, (Department of Transportation), 5.00%, 7/1/27 | 100,000 | 121,192 | ||||
Lee County School Board COP, Series 2012 B, 5.00%, 8/1/17 | 200,000 | 214,102 | ||||
Miami-Dade County Aviation Department Rev., Series 2014 B, 5.00%, 10/1/37 | 50,000 | 56,671 | ||||
Miami-Dade County Educational Facilities Authority Rev., Series 2008 A, (University of Miami), 5.50%, 4/1/16, Prerefunded at 100% of Par(1) | 200,000 | 203,510 | ||||
Miami-Dade County Expressway Authority Rev., Series 2014 A, 5.00%, 7/1/30 | 50,000 | 57,559 | ||||
Miami-Dade County Expressway Authority Rev., Series 2014 B, 5.00%, 7/1/31 | 200,000 | 229,586 | ||||
Miami-Dade County Water & Sewer Rev., Series 2013 A, 5.00%, 10/1/42 | 185,000 | 206,375 | ||||
Orlando & Orange County Expressway Authority Rev., Series 2010 A, 5.00%, 7/1/40 | 85,000 | 95,229 | ||||
Orlando Utilities Commission System Rev., Series 2009 B, 5.00%, 10/1/33 | 210,000 | 233,411 | ||||
Tampa Bay Water Rev., Series 2011 A, 5.00%, 10/1/17(1) | 50,000 | 53,901 | ||||
Tampa Bay Water Rev., Series 2011 A, 5.00%, 10/1/17(1) | 50,000 | 53,901 | ||||
2,751,256 | ||||||
Georgia — 2.5% | ||||||
Atlanta Airport Rev., Series 2010 C, 5.75%, 1/1/23 | 250,000 | 299,130 | ||||
Atlanta Airport Rev., Series 2010 C, 5.25%, 1/1/30 | 200,000 | 230,236 | ||||
Gainesville & Hall County Hospital Authority Rev., Series 2014 A, (Northeast Georgia Health Sysytem, Inc. Project), 5.50%, 8/15/54 | 200,000 | 234,338 | ||||
Metropolitan Atlanta Rapid Transit Authority Rev., Series 2009 A, (Third Indenture), 5.00%, 7/1/39 | 400,000 | 445,512 | ||||
Private Colleges & Universities Authority Rev., Series 2014, (Savannah College of Art & Design Project), 5.00%, 4/1/44 | 200,000 | 217,000 | ||||
1,426,216 | ||||||
Guam — 0.6% | ||||||
Guam Government Business Privilege Tax Rev., Series 2011 A, 5.00%, 1/1/31 | 150,000 | 165,431 | ||||
Guam Power Authority Rev., Series 2012 A, 5.00%, 10/1/34 | 150,000 | 162,147 | ||||
327,578 | ||||||
Hawaii — 0.4% | ||||||
Hawaii Pacific Health Special Purpose Rev., Series 2010 B, 5.75%, 7/1/40 | 200,000 | 224,946 | ||||
Idaho — 0.9% | ||||||
Idaho Health Facilities Authority Rev., (Partners In Healthcare, Inc.), 5.50%, 11/1/45 | 250,000 | 243,898 | ||||
Idaho Health Facilities Authority Rev., (St. Luke's Regional Medical Center), 5.00%, 7/1/35 (AGM) | 250,000 | 273,850 | ||||
517,748 | ||||||
Illinois — 5.6% | ||||||
Chicago Midway Airport Rev., Series 2013 B, 5.00%, 1/1/26 | 300,000 | 344,223 | ||||
Chicago O'Hare International Airport Rev., Series 2015 B, 5.00%, 1/1/23 | 45,000 | 53,289 |
10
Principal Amount | Value | |||||
Chicago O'Hare International Airport Rev., Series 2015 B, 5.00%, 1/1/24 | $ | 60,000 | $ | 71,306 | ||
Chicago O'Hare International Airport Rev., Series 2015 B, 5.00%, 1/1/29 | 200,000 | 229,886 | ||||
Chicago Sales Tax Rev., Series 2011 A, 5.25%, 1/1/38 | 100,000 | 106,080 | ||||
Chicago Wastewater Transmission Rev., Series 2008 C, (Second Lien), 5.00%, 1/1/34 | 30,000 | 32,575 | ||||
Chicago Wastewater Transmission Rev., Series 2008 C, (Second Lien), 5.00%, 1/1/35 | 30,000 | 32,480 | ||||
Chicago Wastewater Transmission Rev., Series 2008 C, (Second Lien), 5.00%, 1/1/39 | 105,000 | 113,178 | ||||
Chicago Wastewater Transmission Rev., Series 2014, (Second Lien), 5.00%, 1/1/39 | 100,000 | 107,061 | ||||
Chicago Waterworks Rev., (Second Lien), 5.00%, 11/1/39 | 30,000 | 32,069 | ||||
Illinois Finance Authority Rev., Series 2008 A, (Prairie Power, Inc.), VRDN, 1.30%, 5/8/17 (GA: National Rural Utilities Cooperative Finance Corp.) | 190,000 | 190,123 | ||||
Illinois Finance Authority Rev., Series 2008 D, (Advocate Health Care Network), 6.25%, 11/1/18, Prerefunded at 100% of Par(1) | 200,000 | 230,020 | ||||
Illinois Finance Authority Rev., Series 2015 A, (OSF Healthcare System), 5.00%, 11/15/45 | 200,000 | 220,002 | ||||
Illinois GO, 5.50%, 7/1/38 | 100,000 | 106,363 | ||||
Illinois GO, 5.00%, 2/1/39 | 100,000 | 103,450 | ||||
Illinois GO, 5.00%, 5/1/39 | 200,000 | 207,078 | ||||
Illinois Toll Highway Authority Rev., Series 2014 B, (Senior Lien), 5.00%, 1/1/39 | 50,000 | 55,464 | ||||
Illinois Toll Highway Authority Rev., Series 2014 C, 5.00%, 1/1/36 | 200,000 | 225,662 | ||||
Railsplitter Tobacco Settlement Authority Rev., 5.00%, 6/1/17 | 150,000 | 158,687 | ||||
Railsplitter Tobacco Settlement Authority Rev., 6.00%, 6/1/28 | 250,000 | 297,260 | ||||
Springfield Electric Rev., (Senior Lien), 5.00%, 3/1/24(3) | 250,000 | 294,580 | ||||
3,210,836 | ||||||
Indiana — 0.2% | ||||||
Indiana Finance Authority Wastewater Utility Rev., Series 2011 A, (First Lien), 5.25%, 10/1/25 | 100,000 | 117,274 | ||||
Kentucky — 1.2% | ||||||
Kentucky Asset / Liability Commission Agency Fund Rev., Series 2010 A, (Federal Highway Trust), 5.00%, 9/1/20 | 135,000 | 155,164 | ||||
Kentucky Property & Buildings Community Rev., 5.50%, 11/1/28 | 250,000 | 279,050 | ||||
Kentucky Turnpike Authority Economic Development Road Rev., Series 2008 A, (Revitalization), 5.00%, 7/1/17 | 240,000 | 256,089 | ||||
690,303 | ||||||
Maryland — 0.3% | ||||||
Maryland Economic Development Corp. Student Housing Rev., (University of Maryland, College Park), 5.00%, 6/1/19 | 150,000 | 161,739 | ||||
Massachusetts — 2.9% | ||||||
Massachusetts Bay Transportation Authority Rev., Series 2008 A, 5.25%, 7/1/18, Prerefunded at 100% of Par(1) | 60,000 | 66,649 | ||||
Massachusetts Bay Transportation Authority Rev., Series 2008 A, 5.25%, 7/1/34 | 140,000 | 154,225 | ||||
Massachusetts Bay Transportation Authority Rev., Series 2012 A, 5.00%, 7/1/41 | 150,000 | 172,501 | ||||
Massachusetts Development Finance Agency Rev., Series 2015 F, (Lahey Clinic), 5.00%, 8/15/45 | 90,000 | 100,830 | ||||
Massachusetts GO, Series 2008 A, (Consolidated Loan), 5.00%, 8/1/18, Prerefunded at 100% of Par(1) | 200,000 | 220,312 | ||||
Massachusetts Health & Educational Facilities Authority Rev., Series 2009 A, (Harvard University), 5.50%, 11/15/36 | 200,000 | 226,838 |
11
Principal Amount | Value | |||||
Massachusetts School Building Authority Sales Tax Rev., Series 2012 A, (Senior Lien), 5.00%, 8/15/30 | $ | 250,000 | $ | 295,315 | ||
Massachusetts School Building Authority Sales Tax Rev., Series 2013 A, (Senior Lien), 5.00%, 5/15/43 | 200,000 | 228,994 | ||||
Massachusetts Water Resources Authority Rev., Series 2011 C, 5.25%, 8/1/42 | 150,000 | 176,376 | ||||
1,642,040 | ||||||
Michigan — 1.8% | ||||||
Detroit City School District GO, Series 2012 A, (Building & Site), 5.00%, 5/1/31 (Q-SBLF) | 250,000 | 274,400 | ||||
Detroit Water and Sewerage Department Disposal Sewage System Rev., Series 2012 A, (Senior Lien), 5.25%, 7/1/39 | 425,000 | 463,437 | ||||
Michigan Finance Authority Rev., Series 2015 A, (Detroit School District), 5.00%, 5/1/18 (Q-SBLF) | 250,000 | 271,980 | ||||
1,009,817 | ||||||
Mississippi — 0.7% | ||||||
Mississippi Development Bank Special Obligation Rev., Series 2013, (Jackson Water and Sewer System Project), 6.875%, 12/1/40 (AGM) | 100,000 | 128,270 | ||||
Mississippi Development Bank Special Obligation Rev., Series 2015 A, (Municipal Energy Agency of Mississippi Power Supply), 5.00%, 3/1/29 (AGM)(3) | 250,000 | 286,560 | ||||
414,830 | ||||||
Missouri — 0.9% | ||||||
Missouri Health & Educational Facilities Authority Rev., Series 2008 A, (Washington University), 5.375%, 3/15/39 | 250,000 | 271,700 | ||||
Missouri Joint Municipal Electric Utility Commission Rev., Series 2014 A, (Plum Point), 5.00%, 1/1/34 | 200,000 | 226,834 | ||||
498,534 | ||||||
Nebraska — 0.7% | ||||||
Douglas County Hospital Authority No. 3 Rev., (Nebraska Methodist Health System), 5.00%, 11/1/45 | 200,000 | 219,934 | ||||
Nebraska Public Power District Rev., Series 2008 B, 5.00%, 1/1/18, Prerefunded at 100% of Par(1) | 150,000 | 162,795 | ||||
382,729 | ||||||
New Jersey — 4.6% | ||||||
Monmouth County GO, (County College Bonds), 4.00%, 9/15/17, Prerefunded at 100% of Par(1) | 250,000 | 264,505 | ||||
New Jersey Economic Development Authority Rev., Series 2011 EE, (School Facilities Construction), 5.00%, 9/1/23 | 70,000 | 74,406 | ||||
New Jersey Economic Development Authority Rev., Series 2015 WW, 5.25%, 6/15/40 | 250,000 | 262,825 | ||||
New Jersey Health Care Facilities Financing Authority Rev., Series 2010, (Hackensack University Medical Center), 5.00%, 1/1/34 | 200,000 | 216,632 | ||||
New Jersey Health Care Facilities Financing Authority Rev., Series 2010, (The Robert Wood Johnson Foundation), 5.00%, 7/1/31 | 200,000 | 220,694 | ||||
New Jersey Health Care Facilities Financing Authority Rev., Series 2014 A, (Barnabas Health Obligated), 5.00%, 7/1/44 | 200,000 | 217,972 | ||||
New Jersey State Turnpike Authority Rev., Series 2009 H, 5.00%, 1/1/36 | 250,000 | 273,750 | ||||
New Jersey State Turnpike Authority Rev., Series 2014 A, 5.00%, 1/1/27 | 200,000 | 236,046 | ||||
New Jersey Transportation Trust Fund Authority Rev., Series 2006 A, 5.25%, 12/15/22 (AGM) | 100,000 | 114,774 | ||||
New Jersey Transportation Trust Fund Authority Rev., Series 2011 B, 5.00%, 6/15/42 | 200,000 | 203,380 | ||||
New Jersey Transportation Trust Fund Authority Rev., Series 2013 AA, 5.00%, 6/15/44 | 100,000 | 102,012 |
12
Principal Amount | Value | |||||
New Jersey Transportation Trust Fund Authority Rev., Series 2014 AA, 5.00%, 6/15/38 | $ | 200,000 | $ | 204,460 | ||
New Jersey Turnpike Authority Rev., Series 2015 E, 5.00%, 1/1/45 | 200,000 | 223,502 | ||||
2,614,958 | ||||||
New York — 16.8% | ||||||
Dutchess County Local Development Corp. Rev., Series 2015 A, (Marist College), 5.00%, 7/1/28 | 100,000 | 118,152 | ||||
Hudson Yards Infrastructure Corp. Rev., Series 2011 A, 5.75%, 2/15/47 | 55,000 | 62,819 | ||||
Long Island Power Authority Electric System Rev., Series 2008 A, 6.00%, 5/1/19, Prerefunded at 100% of Par(1) | 250,000 | 292,825 | ||||
Long Island Power Authority Electric System Rev., Series 2008 B, 5.25%, 4/1/19 (AGC-ICC) | 150,000 | 170,097 | ||||
Long Island Power Authority Rev., Series 2014 A, 5.00%, 9/1/44 | 175,000 | 195,193 | ||||
Metropolitan Transportation Authority Rev., Series 2008 C, 6.50%, 11/15/28 | 250,000 | 289,505 | ||||
Metropolitan Transportation Authority Rev., Series 2012 C, 5.00%, 11/15/41 | 300,000 | 333,837 | ||||
Metropolitan Transportation Authority Rev., Series 2013 B, 5.00%, 11/15/43 | 250,000 | 279,470 | ||||
Nassau County Local Economic Assistance Corp. Rev., (Catholic Health Services of Long Island Obligation Group Project), 5.00%, 7/1/22 | 100,000 | 116,613 | ||||
New Rochelle Rev., Series 2015 A, (Iona College), 5.00%, 7/1/40 | 200,000 | 218,788 | ||||
New York City GO, Series 2009 C, 5.00%, 8/1/23 | 500,000 | 563,515 | ||||
New York City GO, Series 2013 A-1, 5.00%, 8/1/36 | 90,000 | 103,981 | ||||
New York City GO, Series 2015 C, 5.00%, 8/1/25 | 50,000 | 61,482 | ||||
New York City Municipal Water Finance Authority Water & Sewer System Rev., Series 2009 GG-1, (Second General Resolution), 5.00%, 6/15/39 | 70,000 | 78,168 | ||||
New York City Municipal Water Finance Authority Water & Sewer System Rev., Series 2011 GG, (Second General Resolution), 5.00%, 6/15/43 | 250,000 | 284,960 | ||||
New York City Municipal Water Finance Authority Water & Sewer System Rev., Series 2012 FF, (Second General Resolution), 5.00%, 6/15/45 | 600,000 | 667,212 | ||||
New York City Municipal Water Finance Authority Water & Sewer System Rev., Series 2015 FF, (Second General Resolution), 5.00%, 6/15/39 | 145,000 | 167,798 | ||||
New York City Transitional Finance Authority Rev., Series 2009 S-4, 5.50%, 1/15/39 | 300,000 | 338,796 | ||||
New York City Transitional Finance Authority Rev., Series 2011 S1-A, 5.00%, 7/15/25 | 150,000 | 176,737 | ||||
New York City Transitional Finance Authority Rev., Series 2011 C, (Future Tax Secured Bonds), 5.00%, 11/1/39 | 200,000 | 228,390 | ||||
New York City Transitional Finance Authority Rev., Series 2013 F-1, (Future Tax Secured Bonds), 5.00%, 2/1/28 | 200,000 | 237,568 | ||||
New York City Transitional Finance Authority Rev., Series 2013 I, (Future Tax Secured Bonds), 5.00%, 5/1/42 | 200,000 | 224,376 | ||||
New York City Transitional Finance Authority Rev., Series 2015 S-1, (Building Aid Revenue Bonds), 5.00%, 7/15/29 | 125,000 | 147,945 | ||||
New York GO, Series 2009 A, 5.00%, 2/15/39 | 300,000 | 334,278 | ||||
New York Liberty Development Corp. Rev., (World Trade Center), 5.125%, 11/15/44 | 100,000 | 112,210 | ||||
New York Liberty Development Corp. Rev., Series 2005, (Goldman Sachs Headquarters), 5.25%, 10/1/35 | 260,000 | 310,560 | ||||
New York State Dormitory Authority Personal Income Tax Rev., Series 2012 A, (General Purpose), 5.00%, 12/15/25 | 200,000 | 240,270 | ||||
New York State Dormitory Authority Rev., Series 2009 A, (North Shore Long Island Jewish Health System), 5.50%, 5/1/19, Prerefunded at 100% of Par(1) | 250,000 | 287,892 | ||||
New York State Dormitory Authority Rev., Series 2014 A, (Touro College & University System), 5.25%, 1/1/34 | 150,000 | 164,651 |
13
Principal Amount | Value | |||||
New York State Dormitory Authority Rev., Series 2015 A, (North Shore Long Island Jewish Obligated Group), 5.00%, 5/1/26 | $ | 300,000 | $ | 357,006 | ||
New York State Environmental Facilities Corp. Rev., Series 2009 A, 5.125%, 6/15/38 | 280,000 | 316,246 | ||||
New York State Power Authority Rev., Series 2011 A, 5.00%, 11/15/38 | 200,000 | 223,932 | ||||
New York State Thruway Authority Rev., Series 2013 A, 5.00%, 5/1/19 | 100,000 | 112,414 | ||||
New York State Thruway Authority Rev., Series 2014 K, 5.00%, 1/1/29 | 150,000 | 178,495 | ||||
New York State Urban Development Corp. Rev., Series 2009 C, (State Personal Income Tax), 5.00%, 12/15/15 | 120,000 | 120,246 | ||||
New York State Urban Development Corp. Rev., Series 2013 A-1, (State Personal Income Tax), 5.00%, 3/15/28 | 100,000 | 118,240 | ||||
Port Authority of New York & New Jersey Special Obligation Rev., Series 2010 8, (John F. Kennedy International Airport Terminal), 6.00%, 12/1/42 | 250,000 | 292,317 | ||||
Tobacco Settlement Financing Corp. Rev., Series 2011 A, 5.00%, 6/1/17 | 360,000 | 383,285 | ||||
Tobacco Settlement Financing Corp. Rev., Series 2011 A, 5.00%, 6/1/18 | 305,000 | 335,293 | ||||
Tompkins County Development Corp. Rev., Series 2014 A, (Kendal at Ithaca, Inc.), 5.00%, 7/1/44 | 100,000 | 107,091 | ||||
Triborough Bridge & Tunnel Authority Rev., Series 2008 C, 5.00%, 11/15/38 | 200,000 | 220,404 | ||||
Westchester County Local Development Corp. Rev., Series 2014 A, (Pace University), 5.50%, 5/1/42 | 35,000 | 38,759 | ||||
9,611,816 | ||||||
North Carolina — 1.0% | ||||||
North Carolina Eastern Municipal Power Agency Rev., Series 2008 C, 6.75%, 1/1/19, Prerefunded at 100% of Par(1) | 250,000 | 293,785 | ||||
North Carolina Municipal Power Agency No. 1 Rev., Series 2008 A, 5.25%, 1/1/16(1) | 145,000 | 145,635 | ||||
North Carolina Municipal Power Agency No. 1 Rev., Series 2008 A, 5.25%, 1/1/16(1) | 35,000 | 35,154 | ||||
North Carolina Municipal Power Agency No. 1 Rev., Series 2008 A, 5.25%, 1/1/16 | 120,000 | 120,523 | ||||
595,097 | ||||||
Ohio — 1.5% | ||||||
Cleveland-Cuyahoga County Port Authority Rev., (Euclid Avenue Development Corp.), 5.00%, 8/1/39 | 100,000 | 111,129 | ||||
Cleveland-Cuyahoga County Port Authority Rev., (Euclid Avenue Development Corp.), 5.00%, 8/1/44 | 100,000 | 106,538 | ||||
Franklin County Hospital Rev., Series 2011 A, (Ohio Health Corp.), 5.00%, 11/15/41 | 200,000 | 221,100 | ||||
Ohio Air Quality Development Authority Rev., Series 2006 A, (FirstEnergy Generation Corp.), VRDN, 3.75%, 12/3/18 (GA: FirstEnergy Solutions Corp.) | 400,000 | 408,092 | ||||
846,859 | ||||||
Oklahoma — 0.3% | ||||||
Oklahoma Turnpike Authority Rev., Series 2011 A, (Second Series), 5.00%, 1/1/28 | 150,000 | 172,440 | ||||
Oregon — 1.0% | ||||||
Clackamas County Hospital Facility Authority Rev., Series 2009 A, (Legacy Health System), 5.50%, 7/15/35 | 200,000 | 221,396 | ||||
Oregon Health & Science University Rev., Series 2009 A, 5.75%, 7/1/39 | 300,000 | 341,703 | ||||
563,099 | ||||||
Pennsylvania — 3.3% | ||||||
Montgomery County Industrial Development Authority Health System Rev., Series 2015 A, (Albert Einstein Heathcare Network), 5.25%, 1/15/45 | 140,000 | 150,217 | ||||
Pennsylvania Economic Development Financing Authority Unemployment Compensation Rev., Series 2012 A, 5.00%, 7/1/18 | 250,000 | 276,345 |
14
Principal Amount | Value | |||||
Pennsylvania Higher Educational Facilities Authority Rev., Series 2012 1, (Temple University), 5.00%, 4/1/27 | $ | 100,000 | $ | 115,355 | ||
Pennsylvania Turnpike Commission Rev., Series 2008 C, 6.00%, 6/1/28 (AGC) | 200,000 | 221,428 | ||||
Pennsylvania Turnpike Commission Rev., Series 2011 B, 5.25%, 12/1/41 | 150,000 | 165,124 | ||||
Pennsylvania Turnpike Commission Rev., Series 2014 A, Capital Appreciation, 0.00%, 12/1/21(4) | 200,000 | 160,200 | ||||
Pennsylvania Turnpike Commission Rev., Series 2014 C, 5.00%, 12/1/44 | 120,000 | 133,211 | ||||
Philadelphia Gas Works Rev., Series 2009 A, (1998 General Ordinance), 5.00%, 8/1/16 | 300,000 | 308,988 | ||||
Philadelphia Water & Wastewater Rev., Series 2009 A, 5.25%, 1/1/36 | 250,000 | 274,115 | ||||
Southcentral General Authority Rev., Series 2014 A, (Wellspan Health Obligation Group), 5.00%, 6/1/44 | 50,000 | 55,397 | ||||
1,860,380 | ||||||
Rhode Island — 0.2% | �� | |||||
Tobacco Settlement Financing Corp. Rev., Series 2015 B, 5.00%, 6/1/50 | 110,000 | 111,663 | ||||
South Carolina — 0.3% | ||||||
Piedmont Municipal Power Agency Rev., Series 2009 A-3, 5.00%, 1/1/17 | 175,000 | 183,342 | ||||
Tennessee — 1.3% | ||||||
Clarksville Public Building Authority Rev., (Adjusted Financing Morristown Loans), VRDN, 0.01%, 12/1/15 (LOC: Bank of America N.A.) | 755,000 | 755,000 | ||||
Texas — 8.6% | ||||||
Board of Managers Joint Guadalupe County-City of Seguin Hospital Rev., 5.00%, 12/1/45(3) | 200,000 | 202,354 | ||||
Canadian River Municipal Water Authority Rev., (Conjunctive Use Groundwater Supply Project), 5.00%, 2/15/16 | 300,000 | 302,997 | ||||
Central Texas Regional Mobility Authority Rev., Series 2015 A, (Senior Lien), 5.00%, 1/1/45 | 100,000 | 108,724 | ||||
Central Texas Turnpike System Rev., Series 2015 C, 5.00%, 8/15/42 | 300,000 | 326,925 | ||||
Clifton Higher Education Finance Corp. Rev., (IDEA Public Schools), 5.00%, 8/15/39 (PSF-GTD) | 200,000 | 225,704 | ||||
Dallas-Fort Worth International Airport Rev., Series 2011 D, 5.00%, 11/1/20 | 100,000 | 116,475 | ||||
Dallas-Fort Worth International Airport Rev., Series 2011 D, 5.00%, 11/1/21 | 100,000 | 115,695 | ||||
Dallas-Fort Worth International Airport Rev., Series 2014 C, 5.00%, 11/1/20 | 25,000 | 29,119 | ||||
Grand Parkway Transportation Corp. Rev., Series 2013 A, 5.125%, 10/1/43 | 45,000 | 49,092 | ||||
Harris County Toll Road Rev., Series 2009 A, (Senior Lien), 5.00%, 8/15/38 | 400,000 | 443,380 | ||||
Harris County-Houston Sports Authority Rev., Capital Appreciation, Series 2014 A, 0.00%, 11/15/53 (AGM)(2) | 1,000,000 | 167,070 | ||||
Houston Convention & Entertainment Facilities Department Special Tax Rev., 5.00%, 9/1/40 | 125,000 | 138,528 | ||||
Love Field Airport Modernization Corp. Special Facilities Rev., (Southwest Airlines Co.), 5.25%, 11/1/40 | 100,000 | 109,565 | ||||
New Hope Cultural Education Facilities Corp. Rev., Series 2015 A, (Tarleton State University), 5.00%, 4/1/47 | 250,000 | 258,310 | ||||
North Texas Tollway Authority Rev., Series 2010, (First Tier), 6.00%, 1/1/38 | 300,000 | 354,249 | ||||
North Texas Tollway Authority Rev., Series 2010, (First Tier), 6.00%, 1/1/43 | 150,000 | 177,124 | ||||
North Texas Tollway Authority Rev., Series 2012 A, (First Tier), 5.00%, 1/1/29 | 100,000 | 113,006 | ||||
North Texas Tollway Authority Rev., Series 2012 B, (First Tier), 5.00%, 1/1/36 | 40,000 | 44,255 | ||||
North Texas Tollway Authority Rev., Series 2014 A, (First Tier), 5.00%, 1/1/24 | 25,000 | 29,954 | ||||
North Texas Tollway Authority Rev., Series 2015 B, 5.00%, 1/1/40 | 60,000 | 66,356 | ||||
Northside Independent School District GO, (School Building), VRDN, 1.00%, 6/1/16 (PSF-GTD) | 300,000 | 300,912 |
15
Principal Amount/Shares | Value | |||||
San Antonio Electric & Gas Rev., (Junior Lien), 5.00%, 2/1/43 | $ | 50,000 | $ | 55,622 | ||
Tarrant County Cultural Education Facilities Finance Corp. Rev., (Scott & White Memorial Hospital and Scott, Sherwood & Brindley Foundation), 5.50%, 8/15/18, Prerefunded at 100% of Par(1) | 250,000 | 279,697 | ||||
Texas GO, Series 2015 D, (Water Utility Improvements), 5.00%, 5/15/25 | 250,000 | 310,875 | ||||
Texas Municipal Gas Acquisition & Supply Corp. III Rev., 5.00%, 12/15/30 | 100,000 | 109,615 | ||||
Texas Transportation Commission State Highway Fund Rev., Series 2014 B, (First Tier), VRDN, 0.36%, 12/3/15 | 200,000 | 200,026 | ||||
University of North Texas Rev., Series 2009 A, 5.00%, 4/15/32 | 250,000 | 276,920 | ||||
4,912,549 | ||||||
Utah — 0.4% | ||||||
Utah State Board of Regents Rev., 5.25%, 8/1/21 (NATL-RE) | 210,000 | 251,068 | ||||
Vermont — 0.5% | ||||||
Burlington Airport Rev., Series 2014 A, 5.00%, 7/1/30 (AGM) | 250,000 | 280,353 | ||||
Virginia — 1.2% | ||||||
Virginia Resources Authority Clean Water Rev., (State Revolving Fund), 5.00%, 10/1/16 | 200,000 | 207,800 | ||||
Virginia Small Business Financing Authority Rev., (Hampton University), 5.25%, 10/1/29 | 200,000 | 230,998 | ||||
Washington County Industrial Development Authority Hospital Facility Rev., Series 2009 C, (Mountain States Health Alliance), 7.75%, 7/1/38 | 200,000 | 228,272 | ||||
667,070 | ||||||
Washington — 2.1% | ||||||
Energy Northwest Electric Rev., Series 2014 C, (Project 3), 5.00%, 7/1/28 | 55,000 | 66,059 | ||||
King County Sewer Rev., Series 2011 B, 5.00%, 1/1/34 | 200,000 | 228,840 | ||||
Port of Seattle Rev., Series 2010 B, (Intermediate Lien), 5.00%, 6/1/30 | 200,000 | 226,296 | ||||
Washington GO, Series 2008 A, 5.00%, 7/1/18, Prerefunded at 100% of Par(1) | 200,000 | 220,670 | ||||
Washington GO, Series 2015 A-1, 5.00%, 8/1/29 | 200,000 | 241,178 | ||||
Washington GO, Series R-2012C, 5.00%, 7/1/26 | 200,000 | 238,346 | ||||
1,221,389 | ||||||
Wisconsin — 1.1% | ||||||
Wisconsin Health & Educational Facilities Authority Rev., (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/19, Prerefunded at 100% of Par(1) | 300,000 | 352,806 | ||||
Wisconsin Transportation Rev., Series 2008 A, 5.00%, 7/1/18 | 250,000 | 276,548 | ||||
629,354 | ||||||
TOTAL MUNICIPAL SECURITIES (Cost $51,031,541) | 55,176,143 | |||||
TEMPORARY CASH INVESTMENTS — 3.0% | ||||||
Federated Tax-Free Obligations Fund, Institutional Shares (Cost $1,700,000) | 1,700,000 | 1,700,000 | ||||
TOTAL INVESTMENT SECURITIES — 99.6% (Cost $52,731,541) | 56,876,143 | |||||
OTHER ASSETS AND LIABILITIES — 0.4% | 218,893 | |||||
TOTAL NET ASSETS — 100.0% | $ | 57,095,036 |
16
NOTES TO SCHEDULE OF INVESTMENTS | ||
AGC | - | Assured Guaranty Corporation |
AGC-ICC | - | Assured Guarantee Corporation - Insured Custody Certificates |
AGM | - | Assured Guaranty Municipal Corporation |
BAM | - | Build America Mutual Assurance Company |
COP | - | Certificates of Participation |
GA | - | Guaranty Agreement |
GO | - | General Obligation |
LOC | - | Letter of Credit |
NATL-RE | - | National Public Finance Guarantee Corporation - Reinsured |
PSF-GTD | - | Permanent School Fund Guaranteed |
Q-SBLF | - | Qualified School Board Loan Fund |
VRDN | - | Variable Rate Demand Note. Interest reset date is indicated. Rate shown is effective at the period end. |
VRN | - | Variable Rate Note. Interest reset date is indicated. Rate shown is effective at the period end. |
(1) | Escrowed to maturity in U.S. government securities or state and local government securities. |
(2) | Security is a zero-coupon bond. Zero-coupon securities are issued at a substantial discount from their value at maturity. |
(3) | When-issued security. The issue price and yield are fixed on the date of the commitment, but payment and delivery are scheduled for a future date. |
(4) | Coupon rate adjusts periodically based upon a predetermined schedule. Interest reset date is indicated. Rate shown is effective at the period end. |
See Notes to Financial Statements.
17
Statement of Assets and Liabilities |
NOVEMBER 30, 2015 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (cost of $52,731,541) | $ | 56,876,143 | |
Cash | 416,766 | ||
Receivable for capital shares sold | 36,023 | ||
Interest receivable | 724,876 | ||
58,053,808 | |||
Liabilities | |||
Payable for investments purchased | 858,613 | ||
Payable for capital shares redeemed | 64,352 | ||
Accrued management fees | 21,350 | ||
Distribution and service fees payable | 4,157 | ||
Dividends payable | 10,300 | ||
958,772 | |||
Net Assets | $ | 57,095,036 | |
Net Assets Consist of: | |||
Capital paid in | $ | 55,312,648 | |
Distributions in excess of net investment income | (354 | ) | |
Accumulated net realized loss | (2,361,860 | ) | |
Net unrealized appreciation | 4,144,602 | ||
$ | 57,095,036 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||
Investor Class | $42,381,334 | 3,688,603 | $11.49 | |
Institutional Class | $1,317,662 | 114,637 | $11.49 | |
A Class | $11,101,506 | 966,444 | $11.49* | |
C Class | $2,294,534 | 199,714 | $11.49 |
*Maximum offering price $12.03 (net asset value divided by 0.955).
See Notes to Financial Statements.
18
Statement of Operations |
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2015 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Interest | $ | 1,080,440 | |
Expenses: | |||
Management fees | 131,100 | ||
Distribution and service fees: | |||
A Class | 13,869 | ||
C Class | 11,774 | ||
Trustees' fees and expenses | 1,685 | ||
158,428 | |||
Net investment income (loss) | 922,012 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | (95,788 | ) | |
Futures contract transactions | (16,332 | ) | |
(112,120 | ) | ||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | 284,817 | ||
Futures contracts | 14,644 | ||
299,461 | |||
Net realized and unrealized gain (loss) | 187,341 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,109,353 |
See Notes to Financial Statements.
19
Statement of Changes in Net Assets |
SIX MONTHS ENDED NOVEMBER 30, 2015 (UNAUDITED) AND YEAR ENDED MAY 31, 2015 | ||||||
Increase (Decrease) in Net Assets | November 30, 2015 | May 31, 2015 | ||||
Operations | ||||||
Net investment income (loss) | $ | 922,012 | $ | 1,971,525 | ||
Net realized gain (loss) | (112,120 | ) | (589,298 | ) | ||
Change in net unrealized appreciation (depreciation) | 299,461 | 37,021 | ||||
Net increase (decrease) in net assets resulting from operations | 1,109,353 | 1,419,248 | ||||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (719,490 | ) | (1,543,092 | ) | ||
Institutional Class | (2,630 | ) | (11,596 | ) | ||
A Class | (172,183 | ) | (359,238 | ) | ||
C Class | (27,709 | ) | (57,599 | ) | ||
Decrease in net assets from distributions | (922,012 | ) | (1,971,525 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | (2,471,738 | ) | (1,072,960 | ) | ||
Net increase (decrease) in net assets | (2,284,397 | ) | (1,625,237 | ) | ||
Net Assets | ||||||
Beginning of period | 59,379,433 | 61,004,670 | ||||
End of period | $ | 57,095,036 | $ | 59,379,433 | ||
Distributions in excess of net investment income | $ | (354 | ) | $ | (354 | ) |
See Notes to Financial Statements.
20
Notes to Financial Statements |
NOVEMBER 30, 2015 (UNAUDITED)
1. Organization
American Century Municipal Trust (the trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Massachusetts business trust. Long-Term Tax-Free Fund (the fund) is one fund in a series issued by the trust. The fund is diversified as defined under the 1940 Act. The fund’s investment objective is to seek a high level of current income exempt from federal income taxes, consistent with preservation of capital.
The fund offers the Investor Class, the Institutional Class, the A Class and the C Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. The share classes differ principally in their respective sales charges and distribution and shareholder servicing expenses and arrangements. The Institutional Class is made available to institutional shareholders or through financial intermediaries whose clients do not require the same level of shareholder and administrative services as shareholders of other classes. As a result, the Institutional Class is charged a lower unified management fee.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Trustees has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Fixed income securities maturing in greater than 60 days at the time of purchase are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Fixed income securities maturing within 60 days at the time of purchase may be valued at cost, plus or minus any amortized discount or premium or at the evaluated mean as provided by an independent pricing service. Evaluated mean prices are commonly derived through utilization of market models, which may consider, among other factors: trade data, quotations from dealers and active market makers, relevant yield curve and spread data, related sector levels, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
Open-end management investment companies are valued at the reported net asset value per share. Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate clearing corporation.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Trustees or its delegate, in accordance with policies and procedures adopted by the Board of Trustees. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited
21
to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investments, including, but not limited to, futures contracts and when-issued securities. American Century Investment Management, Inc. (ACIM) (the investment advisor) monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for margin requirements on futures contracts.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized gains, if any, are generally declared and paid annually.
Indemnifications — Under the trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and trustees of the trust are also officers and/or directors of American Century Companies, Inc. (ACC). The trust's investment advisor, ACIM, the trust's distributor, American Century Investment Services, Inc. (ACIS), and the trust's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The trust has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent trustees (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds. The rates for the Investment Category Fee range from 0.1625% to 0.2800%. The rates for the Complex Fee range from 0.2500% to 0.3100% for the Investor Class, A Class and C Class. The rates for the Complex Fee range from 0.0500% to 0.1100% for the Institutional Class. The effective annual management fee for each class for the six months ended November 30, 2015 was 0.47% for the Investor Class, A Class and C Class and 0.27% for the Institutional Class.
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Distribution and Service Fees — The Board of Trustees has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class and C Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the six months ended November 30, 2015 are detailed in the Statement of Operations.
Trustees’ Fees and Expenses — The Board of Trustees is responsible for overseeing the investment advisor’s management and operations of the fund. The trustees receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the six months ended November 30, 2015 were $6,920,262 and $10,333,353, respectively.
5. Capital Share Transactions
Transactions in shares of the fund were as follows (unlimited number of shares authorized):
Six months ended November 30, 2015 | Year ended May 31, 2015 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class | ||||||||||
Sold | 362,639 | $ | 4,150,871 | 662,547 | $ | 7,676,403 | ||||
Issued in reinvestment of distributions | 57,316 | 655,741 | 121,481 | 1,406,786 | ||||||
Redeemed | (667,619 | ) | (7,623,301 | ) | (847,558 | ) | (9,794,367 | ) | ||
(247,664 | ) | (2,816,689 | ) | (63,530 | ) | (711,178 | ) | |||
Institutional Class | ||||||||||
Sold | 112,237 | 1,285,612 | 2,178 | 25,003 | ||||||
Issued in reinvestment of distributions | 223 | 2,557 | 993 | 11,511 | ||||||
Redeemed | (38 | ) | (436 | ) | (31,504 | ) | (363,816 | ) | ||
112,422 | 1,287,733 | (28,333 | ) | (327,302 | ) | |||||
A Class | ||||||||||
Sold | 47,498 | 543,760 | 95,270 | 1,100,639 | ||||||
Issued in reinvestment of distributions | 14,926 | 170,756 | 30,263 | 350,225 | ||||||
Redeemed | (127,600 | ) | (1,454,401 | ) | (135,421 | ) | (1,567,606 | ) | ||
(65,176 | ) | (739,885 | ) | (9,888 | ) | (116,742 | ) | |||
C Class | ||||||||||
Sold | 2,206 | 25,257 | 26,408 | 307,219 | ||||||
Issued in reinvestment of distributions | 2,422 | 27,706 | 4,960 | 57,433 | ||||||
Redeemed | (22,441 | ) | (255,860 | ) | (24,356 | ) | (282,390 | ) | ||
(17,813 | ) | (202,897 | ) | 7,012 | 82,262 | |||||
Net increase (decrease) | (218,231 | ) | $ | (2,471,738 | ) | (94,739 | ) | $ | (1,072,960 | ) |
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6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Municipal Securities | — | $ | 55,176,143 | — | ||||
Temporary Cash Investments | $ | 1,700,000 | — | — | ||||
$ | 1,700,000 | $ | 55,176,143 | — |
7. Derivative Instruments
Interest Rate Risk — The fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The value of bonds generally declines as interest rates rise. A fund may enter into futures contracts based on a bond index or a specific underlying security. A fund may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, a fund will segregate cash, cash equivalents or other appropriate liquid securities on its records in amounts sufficient to meet requirements. Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the futures contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average exposure to interest rate risk derivative instruments held during the period was 10 contracts.
At period end, the fund did not have any derivative instruments disclosed on the Statement of Assets and Liabilities. For the six months ended November 30, 2015, the effect of interest rate risk derivative instruments on the Statement of Operations was $(16,332) in net realized gain (loss) on futures contract transactions and $14,644 in change in net unrealized appreciation (depreciation) on futures contracts.
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8. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of November 30, 2015, the components of investments for federal income tax purposes were as follows:
Federal tax cost of investments | $ | 52,734,469 | |
Gross tax appreciation of investments | $ | 4,169,096 | |
Gross tax depreciation of investments | (27,422 | ) | |
Net tax appreciation (depreciation) of investments | $ | 4,141,674 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of May 31, 2015, the fund had accumulated short-term capital losses of $(1,351,287) and accumulated long-term capital losses of $(898,896), which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. Any unlimited losses will be required to be utilized prior to the losses which carry an expiration date. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. Capital loss carryovers expire as follows:
2016 | 2017 | 2018 | 2019 | Unlimited (Short-Term) | Unlimited (Long-Term) |
$(178,394) | $(175,946) | $(72,593) | $(71,439) | $(852,915) | $(898,896) |
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended May 31 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2015(3) | $11.45 | 0.19 | 0.04 | 0.23 | (0.19) | $11.49 | 2.05% | 0.47%(4) | 3.36%(4) | 12% | $42,381 | ||
2015 | $11.55 | 0.39 | (0.10) | 0.29 | (0.39) | $11.45 | 2.51% | 0.47% | 3.36% | 27% | $45,058 | ||
2014 | $11.74 | 0.36 | (0.19) | 0.17 | (0.36) | $11.55 | 1.60% | 0.47% | 3.22% | 36% | $46,195 | ||
2013 | $11.70 | 0.33 | 0.04 | 0.37 | (0.33) | $11.74 | 3.17% | 0.47% | 2.78% | 49% | $65,026 | ||
2012 | $10.89 | 0.39 | 0.81 | 1.20 | (0.39) | $11.70 | 11.22% | 0.48% | 3.42% | 38% | $49,255 | ||
2011 | $11.02 | 0.43 | (0.13) | 0.30 | (0.43) | $10.89 | 2.77% | 0.48% | 3.94% | 23% | $23,674 | ||
Institutional Class | |||||||||||||
2015(3) | $11.45 | 0.20 | 0.04 | 0.24 | (0.20) | $11.49 | 2.15% | 0.27%(4) | 3.56%(4) | 12% | $1,318 | ||
2015 | $11.54 | 0.41 | (0.09) | 0.32 | (0.41) | $11.45 | 2.81% | 0.27% | 3.56% | 27% | $25 | ||
2014 | $11.73 | 0.38 | (0.19) | 0.19 | (0.38) | $11.54 | 1.81% | 0.27% | 3.42% | 36% | $353 | ||
2013 | $11.69 | 0.35 | 0.04 | 0.39 | (0.35) | $11.73 | 3.38% | 0.27% | 2.98% | 49% | $430 | ||
2012 | $10.89 | 0.42 | 0.79 | 1.21 | (0.41) | $11.69 | 11.35% | 0.28% | 3.62% | 38% | $280 | ||
2011 | $11.02 | 0.45 | (0.13) | 0.32 | (0.45) | $10.89 | 2.97% | 0.28% | 4.14% | 23% | $279 |
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For a Share Outstanding Throughout the Years Ended May 31 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||
2015(3) | $11.44 | 0.18 | 0.05 | 0.23 | (0.18) | $11.49 | 2.01% | 0.72%(4) | 3.11%(4) | 12% | $11,102 | ||
2015 | $11.55 | 0.36 | (0.11) | 0.25 | (0.36) | $11.44 | 2.17% | 0.72% | 3.11% | 27% | $11,806 | ||
2014 | $11.73 | 0.33 | (0.18) | 0.15 | (0.33) | $11.55 | 1.44% | 0.72% | 2.97% | 36% | $12,026 | ||
2013 | $11.70 | 0.30 | 0.03 | 0.33 | (0.30) | $11.73 | 2.91% | 0.72% | 2.53% | 49% | $18,444 | ||
2012 | $10.89 | 0.36 | 0.81 | 1.17 | (0.36) | $11.70 | 10.85% | 0.73% | 3.17% | 38% | $20,645 | ||
2011 | $11.02 | 0.40 | (0.13) | 0.27 | (0.40) | $10.89 | 2.52% | 0.73% | 3.69% | 23% | $16,820 | ||
C Class | |||||||||||||
2015(3) | $11.45 | 0.13 | 0.04 | 0.17 | (0.13) | $11.49 | 1.54% | 1.47%(4) | 2.36%(4) | 12% | $2,295 | ||
2015 | $11.55 | 0.27 | (0.10) | 0.17 | (0.27) | $11.45 | 1.49% | 1.47% | 2.36% | 27% | $2,490 | ||
2014 | $11.74 | 0.25 | (0.19) | 0.06 | (0.25) | $11.55 | 0.60% | 1.47% | 2.22% | 36% | $2,431 | ||
2013 | $11.70 | 0.21 | 0.04 | 0.25 | (0.21) | $11.74 | 2.15% | 1.47% | 1.78% | 49% | $3,355 | ||
2012 | $10.89 | 0.28 | 0.81 | 1.09 | (0.28) | $11.70 | 10.12% | 1.48% | 2.42% | 38% | $4,087 | ||
2011 | $11.02 | 0.32 | (0.13) | 0.19 | (0.32) | $10.89 | 1.76% | 1.48% | 2.94% | 23% | $3,201 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Six months ended November 30, 2015 (unaudited). |
(4) | Annualized. |
See Notes to Financial Statements.
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Approval of Management Agreement |
At a meeting held on June 16, 2015, the Fund’s Board of Trustees unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s directors/trustees, including a majority of the independent Trustees, each year. The Board regards this annual evaluation and renewal as one of its most important responsibilities.
The independent Trustees have memorialized a statement regarding the relationship between their ongoing obligations to oversee and evaluate the performance of the Advisor and their annual consideration of renewal of the management agreement. In that statement, the independent Trustees noted that their assessment of the Advisor’s performance is an ongoing process that takes place over the entire year and is informed by all of the extensive information that the Board and its committees receive and consider over time. This information, together with the materials provided in connection with the review, are central to the Board’s assessment of the Advisor’s performance and its determination whether to renew the Fund’s management agreement.
Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and analysis relating to the proposed renewal. This information and analysis was compiled by the Advisor and certain independent providers of evaluation data concerning the Fund and the services provided to the Fund by the Advisor.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor included, but was not limited to, the following:
• | the nature, extent, and quality of investment management, shareholder services, and other services provided by the Advisor to the Fund; |
• | the wide range of other programs and services the Advisor provides to the Fund and its shareholders on a routine and non-routine basis; |
• | the investment performance of the Fund, including data comparing the Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies; |
• | the cost of owning the Fund compared to the cost of owning similar funds; |
• | the compliance policies, procedures, and regulatory experience of the Fund's service providers; |
• | financial data showing the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the overall profitability of the Advisor; |
• | possible economies of scale associated with the Advisor’s management of the Fund and other accounts under its management; |
• | data comparing services provided and charges to the Advisor's other investment management clients; |
• | acquired fund fees and expenses; |
• | payments by the Fund and the Advisor to financial intermediaries; and |
• | any collateral benefits derived by the Advisor from the management of the Fund. |
In keeping with its practice, the Board held two in-person meetings to review and discuss the information provided in response to their request. The independent Trustees also had the benefit of the advice of their independent counsel throughout the process.
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Factors Considered
The Trustees considered all of the information provided by the Advisor, the independent data providers, and the independent Trustees’ independent counsel in connection with the review. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Trustees did not identify any single factor as being all-important or controlling and each Trustee may have attributed different levels of importance to different factors. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:
Nature, Extent and Quality of Services - Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that under the management agreement, the Advisor provides or arranges at its own expense a wide variety of services including:
• | constructing and designing the Fund |
• | portfolio research and security selection |
• | initial capitalization/funding |
• | securities trading |
• | Fund administration |
• | custody of Fund assets |
• | daily valuation of the Fund’s portfolio |
• | shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications |
• | legal services (except the independent Trustees’ counsel) |
• | regulatory and portfolio compliance |
• | financial reporting |
• | marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans) |
The Board noted that many of these services have expanded over time both in terms of quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management, Shareholder, and Other Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and approved strategies. Further, the Trustees recognize that the Advisor has an obligation to seek the best execution of fund trades. In providing these services, the Advisor utilizes teams of investment professionals (portfolio managers, analysts, research assistants, and securities traders) who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Portfolio Committee, regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Trustees also review detailed performance information during the management agreement approval process. If performance concerns are identified, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The Fund’s performance was above its benchmark for the ten-year period and was below its benchmark for the one-, three-, and five-year periods reviewed by the Board. The Board discussed the Fund’s performance with the Advisor and was satisfied with the efforts being undertaken by the Advisor. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
29
Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities.
Certain aspects of shareholder and transfer agency service level efficiency and the quality of securities trading activities are measured by independent third party providers and are presented in comparison to other fund groups not managed by the Advisor. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund, its overall profitability, and its financial condition. The Trustees have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the current management fee. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders enhanced and expanded services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, taxes, interest, extraordinary expenses, the fees and expenses of the Fund’s independent Trustees (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing, and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unified fee to the total expense ratio of peer funds. The unified fee charged to shareholders of the Fund was below the median of the total expense ratios of the Fund’s peer universe. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
30
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Trustees also requested and received a description of payments made to intermediaries by the Fund and the Advisor. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. The Board noted that the Advisor’s primary business is managing mutual funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor receives proprietary research from broker-dealers that execute fund portfolio transactions. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Trustees. As a result of this process, the Board, including all of the independent Trustees and assisted by the advice of independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and throughout the year, concluded that the management agreement between the Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.
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Additional Information |
Proxy Voting Policies
Descriptions of the principles and policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund are available without charge, upon request, by calling 1-800-345-2021 or visiting the "About Us" page of American Century Investments’ website at americancentury.com. A description of the policies is also available on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century Municipal Trust | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2016 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-87761 1601 |
SEMIANNUAL REPORT | NOVEMBER 30, 2015 |
Tax-Free Money Market Fund
Table of Contents |
President’s Letter | 2 | |
Performance | 3 | |
Fund Characteristics | ||
Shareholder Fee Example | ||
Schedule of Investments | ||
Statement of Assets and Liabilities | ||
Statement of Operations | ||
Statement of Changes in Net Assets | ||
Notes to Financial Statements | ||
Financial Highlights | ||
Approval of Management Agreement | ||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
Dear Investor: Thank you for reviewing this semiannual report for the six months ended November 30, 2015. It provides a macroeconomic and financial market overview (below), followed by fund performance, a schedule of fund investments, and other financial information. For additional commentary and updated information on fund performance, key factors that affected asset returns, and other insights regarding the investment markets, we encourage you to visit our website, americancentury.com. | |
Jonathan Thomas |
Municipal Bonds (Munis) Outperformed During a Volatile Period
Widespread concerns about economic growth (especially in China) and central bank monetary policy decisions helped spark sharp financial market volatility during the reporting period. China’s challenges and events included a stock market crash, a sudden currency devaluation, and massive monetary policy intervention by its central bank. These events rippled through the global markets from July through September, contributing to the decision by the U.S. Federal Reserve (the Fed) in September to delay raising its short-term interest rate target for fear of further roiling the markets. However, the Fed indicated in October that it could still raise rates by year end. This environment made it difficult to produce positive investment returns—the S&P 500 Index and the Barclays U.S. Aggregate Bond Index returned -0.21% and -0.12%, respectively, for the six months.
Meanwhile, munis outperformed. Despite default threats in Puerto Rico and financial concerns facing the city of Chicago and the states of Illinois and New Jersey, the broader muni market was viewed as a relative bastion of stability because of its comparatively high overall credit quality. Investors also focused on munis because this sector has historically performed relatively well in periods of rising interest rates, particularly if the rate increases reflect stronger economic conditions. The Barclays Municipal Bond Index advanced 2.37% for the six months.
After the reporting period, the Fed finally began the process of gradually increasing its overnight interest rate target. But we don’t expect a big increase in intermediate- to longer-maturity bond yields in the near term because of deflationary threats and other headwinds still facing the global economy. We believe the Fed’s moves (and conjecture about these moves) will be accompanied by further market volatility. This could present both challenges and opportunities for active investment managers. In this environment, we continue to believe in a disciplined, diversified, long-term investment approach, using professionally managed stock and bond portfolios to meet financial goals. We appreciate your continued trust in us.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Performance |
Total Returns as of November 30, 2015 | |||||||
Average Annual Returns | |||||||
Ticker Symbol | 6 months(1) | 1 year | 5 years | 10 years | Since Inception | Inception Date | |
Investor Class | BNTXX | 0.01%(2) | 0.02%(2) | 0.02%(2) | 0.94%(2) | 2.56%(2) | 7/31/84 |
(1) | Total returns for periods less than one year are not annualized. |
(2) | Returns would have been lower if a portion of the management fee had not been waived. |
Total Annual Fund Operating Expenses | |
Investor Class | 0.50% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future
results. Current performance may be higher or lower than the performance shown. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
An investment in the fund is neither insured nor guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
The 7-day current yield more closely reflects the current earnings of the fund than the total return.
3
Fund Characteristics |
NOVEMBER 30, 2015 | |
7-Day Current Yield | |
After waiver(1) | 0.01% |
Before waiver | -0.30% |
7-Day Effective Yield | |
After waiver(1) | 0.01% |
(1) Yields would have been lower if a portion of the management fee had not been waived. | |
Portfolio at a Glance | |
Weighted Average Maturity | 27 days |
Weighted Average Life | 44 days |
Portfolio Composition by Maturity | % of fund investments |
1-30 days | 88% |
31-90 days | 3% |
91-180 days | 1% |
More than 180 days | 8% |
4
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from June 1, 2015 to November 30, 2015.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or Institutional Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
5
Beginning Account Value 6/1/15 | Ending Account Value 11/30/15 | Expenses Paid During Period(1) 6/1/15 - 11/30/15 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class (after waiver) | $1,000 | $1,000.10 | $0.85 | 0.17% |
Investor Class (before waiver) | $1,000 | $1,000.10(2) | $2.50 | 0.50% |
Hypothetical | ||||
Investor Class (after waiver) | $1,000 | $1,024.15 | $0.86 | 0.17% |
Investor Class (before waiver) | $1,000 | $1,022.50 | $2.53 | 0.50% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, divided by 366, to reflect the one-half year period. |
(2) | Ending account value assumes the return earned after waiver and would have been lower if a portion of the management fee had not been waived. |
6
Schedule of Investments |
NOVEMBER 30, 2015 (UNAUDITED)
Principal Amount | Value | |||||
MUNICIPAL SECURITIES — 94.2% | ||||||
Alabama — 0.3% | ||||||
City of Tuscaloosa GO, Series 2014 C, 1.00%, 1/1/16 | $ | 530,000 | $ | 530,309 | ||
Arkansas — 0.6% | ||||||
City of Lowell Rev., (Arkansas Democrat Gazett Project), VRDN, 0.12%, 12/2/15 (LOC: JPMorgan Chase Bank N.A.) | 1,000,000 | 1,000,000 | ||||
California — 16.2% | ||||||
California State University PUTTERs Rev., Series 2008-2646Z, VRDN, 0.09%, 12/3/15 (AGM)(LIQ FAC: JPMorgan Chase Bank N.A.)(1) | 845,000 | 845,000 | ||||
City of Los Angeles GO, 2.00%, 6/30/16 | 3,000,000 | 3,029,163 | ||||
County of Riverside Rev., Series 2015 D, 2.00%, 10/12/16 | 2,500,000 | 2,536,570 | ||||
Eastern Municipal Water District Water & Sewer Rev., Series 2012 A, VRN, 0.05%, 12/3/15 | 3,500,000 | 3,500,000 | ||||
Elsinore Valley Municipal Water District COP, Series 2007 A, 4.25%, 7/1/16 (NATL-RE) | 750,000 | 767,393 | ||||
Metropolitan Water District of Southern California Rev., Series 2015 E, VRN, 0.08%, 12/3/15 | 6,320,000 | 6,320,000 | ||||
Victorville Joint Powers Finance Authority Lease Rev., Series 2007 A, (Cogeneration Facility), VRDN, 0.86%, 12/3/15 (LOC: BNP Paribas) | 8,440,000 | 8,440,000 | ||||
25,438,126 | ||||||
Colorado — 1.9% | ||||||
Colorado Educational & Cultural Facilities Authority Rev., (Telluride Mountain School), VRDN, 0.12%, 12/3/15 (LOC: Wells Fargo Bank N.A.) | 1,260,000 | 1,260,000 | ||||
Midcities Metropolitan District No. 1 Rev., Series 2004 B, VRDN, 0.11%, 12/3/15 (LOC: BNP Paribas) | 1,740,000 | 1,740,000 | ||||
3,000,000 | ||||||
District of Columbia — 3.2% | ||||||
District of Columbia Income Tax Secured Rev., Series 2015 A, VRN, 0.13%, 12/3/15 | 5,000,000 | 5,000,000 | ||||
Florida — 2.4% | ||||||
Tender Option Bond Trust Receipts / Certificates Rev., Series XF0096, VRDN, 0.11%, 12/3/15 (AGM-CR and XLCA)(LIQ FAC: JPMorgan Chase Bank N.A.)(1) | 3,700,000 | 3,700,000 | ||||
Georgia — 4.6% | ||||||
Stephens County Development Authority Solid Waste Disposable Facilities Rev., (Caterpillar, Inc.), VRDN, 0.17%, 12/3/15 | 1,520,000 | 1,520,000 | ||||
Tender Option Bond Trust Receipts / Certificates Rev., Series 2015-ZF0210, VRDN, 0.13%, 12/3/15 (LIQ FAC: JPMorgan Chase Bank N.A.)(1) | 1,600,000 | 1,600,000 | ||||
Valdosta-Lowndes County Industrial Development Authority Rev., (Steeda Autosports Project), VRDN, 0.15%, 12/3/15 (LOC: Bank of America N.A.) | 2,465,000 | 2,465,000 | ||||
Walton County Development Authority Rev., (Walton Press, Inc.), VRDN, 0.15%, 12/3/15 (LOC: Bank of America N.A.) | 1,680,000 | 1,680,000 | ||||
7,265,000 | ||||||
Idaho — 1.9% | ||||||
State of Idaho GO, 2.00%, 6/30/16 | 3,000,000 | 3,029,622 |
7
Principal Amount | Value | |||||
Illinois — 6.0% | ||||||
Chicago Industrial Development Rev., (Evans Food Products Company, Inc.), VRDN, 0.17%, 12/3/15 (LOC: Bank of America N.A.) | $ | 885,000 | $ | 885,000 | ||
Illinois Finance Authority Rev., (Andre's Imaging & Graphics, Inc.), VRDN, 0.17%, 12/3/15 (LOC: U.S. Bank N.A.) | 1,280,000 | 1,280,000 | ||||
Illinois Finance Authority Rev., (The Uniform Law Foundation), VRDN, 0.07%, 12/3/15 (LOC: PNC Bank N.A.) | 2,740,000 | 2,740,000 | ||||
Illinois Finance Authority Rev., Series 1997, (Radiological Society), VRDN, 0.11%, 12/3/15 (LOC: JPMorgan Chase Bank N.A.) (Acquired 8/23/11, Cost $360,000)(2) | 360,000 | 360,000 | ||||
Illinois Housing Development Authority Multi-Family Housing Rev., (Rome Meadows), VRDN, 0.41%, 12/3/15 (LOC: First National Bank and FHLB) | 1,745,000 | 1,745,000 | ||||
Rock Island County Metropolitan Airport Authority Rev., (Elliott Aviation), VRDN, 0.17%, 12/2/15 (LOC: U.S. Bank N.A.) | 615,000 | 615,000 | ||||
Village of McCook Rev., Series 1996 B, (Illinois St. Andrew Society), VRDN, 0.06%, 12/3/15 (LOC: Northern Trust Company) | 1,700,000 | 1,700,000 | ||||
9,325,000 | ||||||
Indiana — 0.2% | ||||||
University of Southern Indiana Rev., Series 1999 G, (Student Fee), VRDN, 0.11%, 12/2/15 (LOC: JPMorgan Chase Bank N.A.) | 250,000 | 250,000 | ||||
Iowa — 0.3% | ||||||
Iowa Finance Authority Industrial Development Rev., (Embria Health Sciences), VRDN, 0.15%, 12/3/15 (LOC: Wells Fargo Bank N.A.) | 530,000 | 530,000 | ||||
Louisiana — 2.7% | ||||||
Calcasieu Parish Industrial Development Board, Inc. Rev., (Hydroserve Westlake LLC), VRDN, 0.11%, 12/2/15 (LOC: JPMorgan Chase Bank N.A.) | 1,200,000 | 1,200,000 | ||||
Terrebonne Economic Development Authority Gulf Opportunity Zone Rev., (Buquet Distribution Co.), VRDN, 0.24%, 12/3/15 (LOC: Community Bank and FHLB) | 3,000,000 | 3,000,000 | ||||
4,200,000 | ||||||
Maryland — 1.0% | ||||||
County of Montgomery Rev., (American Gastroenterological), VRDN, 0.12%, 12/3/15 (LOC: Wells Fargo Bank N.A.) | 1,535,000 | 1,535,000 | ||||
Massachusetts — 0.2% | ||||||
Massachusetts Industrial Finance Agency Rev., (Hi-Tech Mold & Tool, Inc.), VRDN, 0.30%, 12/2/15 (LOC: TD Bank N.A.) | 360,000 | 360,000 | ||||
Minnesota — 5.1% | ||||||
City of Minnetonka Rev., (Brier Creek Apartments Partnership LLP), VRDN, 0.12%, 12/3/15 (LOC: Wells Fargo Bank N.A.) | 200,000 | 200,000 | ||||
St. Paul Port Authority Rev., (Bigos-Sibley Project), VRDN, 0.05%, 12/3/15 (LIQ FAC: FHLMC) | 7,845,000 | 7,844,950 | ||||
8,044,950 | ||||||
Missouri — 1.2% | ||||||
Missouri State Health & Educational Facilities Authority Rev., (Kansas City Art Institute), VRDN, 0.03%, 12/1/15 (LOC: Commerce Bank N.A.) | 1,900,000 | 1,900,000 | ||||
Nevada — 2.5% | ||||||
Nevada Housing Division Rev., (Multi Unit Housing), VRDN, 0.10%, 12/3/15 (LOC: Citibank N.A.) | 2,365,000 | 2,365,000 | ||||
State of Nevada GO, Series 2013 D-1, (Capital Improvement & Cultural Affairs), 4.00%, 3/1/16 | 1,500,000 | 1,514,019 | ||||
3,879,019 |
8
Principal Amount | Value | |||||
New Mexico — 0.3% | ||||||
City of Albuquerque Industrial Rev., (CVI Laser LLC), VRDN, 0.20%, 12/3/15 (LOC: Bank of America N.A.)(Acquired 1/29/15, Cost $500,000)(2) | $ | 500,000 | $ | 500,000 | ||
New York — 2.1% | ||||||
North Amityville Fire Co., Inc. Rev., VRDN, 0.20%, 12/3/15 (LOC: Citibank N.A.) | 2,455,000 | 2,455,000 | ||||
Suffolk County Industrial Development Agency Rev., (JBC Realty LLC), VRDN, 0.25%, 12/2/15 (LOC: JPMorgan Chase Bank N.A.) | 790,000 | 790,000 | ||||
3,245,000 | ||||||
North Carolina — 7.2% | ||||||
Austin Trust Rev., Series 2008-3509, VRDN, 0.15%, 12/3/15 (LIQ FAC: Bank of America N.A)(1) | 4,000,000 | 4,000,000 | ||||
North Carolina Capital Facilities Finance Agency Rev., (Lees-McRae College, Inc.), VRDN, 0.12%, 12/3/15 (LOC: Branch Banking & Trust) | 4,745,000 | 4,745,000 | ||||
North Carolina Medical Care Commission Facilities Rev., (Mission St. Joseph's), VRDN, 0.08%, 12/3/15 (SBBPA: Branch Banking & Trust) | 2,455,000 | 2,455,000 | ||||
11,200,000 | ||||||
Ohio — 2.2% | ||||||
County of Putnam Healthcare Facilities Rev., (Hilty Memorial Home), VRDN, 0.06%, 12/3/15 (LOC: First Federal Bank of Midwest and FHLB) | 3,430,000 | 3,430,000 | ||||
Pennsylvania — 2.9% | ||||||
Pennsylvania Economic Development Financing Authority Rev., (Westmoreland-Fayette, Inc.), VRDN, 0.15%, 12/3/15 (LOC: PNC Bank N.A.) | 400,000 | 400,000 | ||||
Pennsylvania Economic Development Financing Authority Rev., Series 2000 A-4, (John C. Helfrick), VRDN, 0.21%, 12/3/15 (LOC: PNC Bank N.A.) | 500,000 | 500,000 | ||||
Pennsylvania Economic Development Financing Authority Rev., Series 2005 C-1, (Miquon School Project), VRDN, 0.10%, 12/3/15 (LOC: PNC Bank N.A.) | 400,000 | 400,000 | ||||
Pennsylvania Economic Development Financing Authority Rev., Series 2007 A-1, (Siem Tool / PRJP Partnership Obligated Group), VRDN, 0.11%, 12/3/15 (LOC: PNC Bank N.A.) | 700,000 | 700,000 | ||||
Pennsylvania Economic Development Financing Authority Rev., Series B-1, (Seven Shes Realty), VRDN, 0.10%, 12/3/15 (LOC: PNC Bank N.A.) | 650,000 | 650,000 | ||||
Pennsylvania Economic Development Financing Authority Rev., Series B-2, VRDN, 0.11%, 12/3/15 (LOC: PNC Bank N.A.) | 1,900,000 | 1,900,000 | ||||
4,550,000 | ||||||
South Carolina — 4.2% | ||||||
South Carolina Jobs Economic Development Authority Rev., (Franco Manufacturing Co., Inc.), VRDN, 0.30%, 12/2/15 (LOC: Bank of America N.A.) | 2,000,000 | 2,000,000 | ||||
South Carolina Jobs Economic Development Authority Rev., (Medical University of South Carolina Foundation), VRDN, 0.12%, 12/3/15 (LOC: Wells Fargo Bank N.A.) | 2,100,000 | 2,100,000 | ||||
South Carolina Jobs Economic Development Authority Rev., (YMCA of Beaufort County Project), VRDN, 0.08%, 12/3/15 (LOC: Branch Banking & Trust) | 2,510,000 | 2,510,000 | ||||
6,610,000 | ||||||
Texas — 16.6% | ||||||
Austin Trust Rev., Series 2008-1197, VRDN, 0.11%, 12/3/15 (LIQ FAC: Bank of America N.A.)(1) | 3,125,000 | 3,125,000 |
9
Principal Amount/ Shares | Value | |||||
Barbers Hill Independent School District GO, 5.00%, 2/15/16 (LOC: Texas Permanent School Fund and PSF-GTD) | $ | 900,000 | $ | 908,870 | ||
Board of San Antonio Electric & Gas Rev., 5.00%, 2/1/16 | 1,000,000 | 1,008,045 | ||||
Brazos Harbor Industrial Development Corp. Rev., (BASF Corp.), VRDN, 0.04%, 12/2/15 | 3,500,000 | 3,500,000 | ||||
City of Frisco GO, 5.00%, 2/15/16 (NATL-RE) | 1,685,000 | 1,701,747 | ||||
Eanes Independent School District GO, Series 2015 A, 2.00%, 8/1/16 (LOC: Texas Permanent School Fund and PSF-GTD) | 2,320,000 | 2,343,821 | ||||
JPMorgan Chase PUTTERs/DRIVERs Trust Rev., Series 4302Z, VRDN, 0.12%, 12/3/15 (LIQ FAC: JPMorgan Chase Bank N.A.)(1) | 4,000,000 | 4,000,000 | ||||
Mission Economic Development Corp. Industrial Rev., (CMI Project), VRDN, 0.15%, 12/3/15 (LOC: Wells Fargo Bank N.A.) | 4,425,000 | 4,425,000 | ||||
Mission Economic Development Corp. Solid Waste Disposal Rev., (IESI Corp.), VRDN, 0.06%, 12/3/15 (LOC: Bank of America N.A.) | 5,000,000 | 5,000,000 | ||||
26,012,483 | ||||||
Utah — 0.4% | ||||||
Ogden City Redevelopment Agency Tax Increment Rev., Series 2005 A, VRDN, 0.12%, 12/3/15 (LOC: Wells Fargo Bank N.A.) | 545,000 | 545,000 | ||||
Virginia — 2.1% | ||||||
Barclays Capital Municipal Trust Receipts Rev., Series 2009 4-B, (Virginia College), VRDN, 0.09%, 12/3/15 (LIQ FAC: Barclays Bank PLC)(1) | 3,335,000 | 3,335,000 | ||||
Washington — 1.8% | ||||||
Washington Economic Development Finance Authority Rev., Series 2006 F, (Wesmar Co., Inc.), VRDN, 0.14%, 12/3/15 (LOC: U.S. Bank N.A.) | 2,745,000 | 2,745,000 | ||||
Wisconsin — 4.1% | ||||||
Wisconsin Housing & Economic Development Authority Rev., Series 2003 E, VRDN, 0.07%, 12/2/15 (AGM)(SBBPA: FHLB) | 6,375,000 | 6,375,000 | ||||
TOTAL MUNICIPAL SECURITIES | 147,534,509 | |||||
TEMPORARY CASH INVESTMENTS — 4.1% | ||||||
Federated Tax-Free Obligations Fund, Institutional Shares | 6,400,000 | 6,400,000 | ||||
TOTAL INVESTMENT SECURITIES — 98.3% | 153,934,509 | |||||
OTHER ASSETS AND LIABILITIES — 1.7% | 2,637,318 | |||||
TOTAL NET ASSETS — 100.0% | $ | 156,571,827 |
10
NOTES TO SCHEDULE OF INVESTMENTS | ||
AGM | - | Assured Guaranty Municipal Corporation |
AGM-CR | - | Assured Guaranty Municipal Corporation - Custodian Receipts |
COP | - | Certificates of Participation |
DRIVERs | - | Derivative Inverse Tax-Exempt Receipts |
FHLB | - | Federal Home Loan Bank |
FHLMC | - | Federal Home Loan Mortgage Corporation |
GO | - | General Obligation |
LIQ FAC | - | Liquidity Facilities |
LOC | - | Letter of Credit |
NATL-RE | - | National Public Finance Guarantee Corporation - Reinsured |
PSF-GTD | - | Permanent School Fund Guaranteed |
PUTTERs | - | Puttable Tax-Exempt Receipts |
SBBPA | - | Standby Bond Purchase Agreement |
VRDN | - | Variable Rate Demand Note. Interest reset date is indicated. Rate shown is effective at the period end. |
VRN | - | Variable Rate Note. Interest reset date is indicated. Rate shown is effective at the period end. |
XLCA | - | XL Capital Ltd. |
(1) | Restricted security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold without restriction to qualified institutional investors and have been deemed liquid under policies approved by the Board of Trustees. The aggregate value of these securities at the period end was $20,605,000, which represented 13.2% of total net assets. |
(2) | Restricted security that may not be offered for public sale without being registered with the Securities and Exchange Commission and/or may be subject to resale, redemption or transferability restrictions. The aggregate value of these securities at the period end was $860,000, which represented 0.5% of total net assets. |
See Notes to Financial Statements.
11
Statement of Assets and Liabilities |
NOVEMBER 30, 2015 (UNAUDITED) | |||
Assets | |||
Investment securities, at value (amortized cost and cost for federal income tax purposes) | $ | 153,934,509 | |
Cash | 827,233 | ||
Receivable for investments sold | 1,575,000 | ||
Receivable for capital shares sold | 231,601 | ||
Interest receivable | 176,440 | ||
156,744,783 | |||
Liabilities | |||
Payable for capital shares redeemed | 151,286 | ||
Accrued management fees | 21,670 | ||
172,956 | |||
Net Assets | $ | 156,571,827 | |
Investor Class Capital Shares | |||
Shares outstanding (unlimited number of shares authorized) | 156,586,581 | ||
Net Asset Value Per Share | $ | 1.00 | |
Net Assets Consist of: | |||
Capital paid in | $ | 156,566,751 | |
Undistributed net investment income | 600 | ||
Undistributed net realized gain | 4,476 | ||
$ | 156,571,827 |
See Notes to Financial Statements.
12
Statement of Operations |
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2015 (UNAUDITED) | |||
Investment Income (Loss) | |||
Income: | |||
Interest | $ | 139,280 | |
Expenses: | |||
Management fees | 382,429 | ||
Trustees' fees and expenses | 4,601 | ||
Other expenses | 186 | ||
387,216 | |||
Fees waived | (255,695 | ) | |
131,521 | |||
Net investment income (loss) | 7,759 | ||
Net realized gain (loss) on investment transactions | 4,476 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 12,235 |
See Notes to Financial Statements.
13
Statement of Changes in Net Assets |
SIX MONTHS ENDED NOVEMBER 30, 2015 (UNAUDITED) AND YEAR ENDED MAY 31, 2015 | ||||||
Increase (Decrease) in Net Assets | November 30, 2015 | May 31, 2015 | ||||
Operations | ||||||
Net investment income (loss) | $ | 7,759 | $ | 16,301 | ||
Net realized gain (loss) | 4,476 | 600 | ||||
Net increase (decrease) in net assets resulting from operations | 12,235 | 16,901 | ||||
Distributions to Shareholders | ||||||
From net investment income | (7,759 | ) | (16,301 | ) | ||
From net realized gains | — | (17,565 | ) | |||
Decrease in net assets from distributions | (7,759 | ) | (33,866 | ) | ||
Capital Share Transactions | ||||||
Proceeds from shares sold | 35,548,770 | 68,526,214 | ||||
Proceeds from reinvestment of distributions | 7,577 | 33,543 | ||||
Payments for shares redeemed | (39,303,368 | ) | (75,394,148 | ) | ||
Net increase (decrease) in net assets from capital share transactions | (3,747,021 | ) | (6,834,391 | ) | ||
Net increase (decrease) in net assets | (3,742,545 | ) | (6,851,356 | ) | ||
Net Assets | ||||||
Beginning of period | 160,314,372 | 167,165,728 | ||||
End of period | $ | 156,571,827 | $ | 160,314,372 | ||
Undistributed net investment income | $ | 600 | $ | 600 | ||
Transactions in Shares of the Fund | ||||||
Sold | 35,548,770 | 68,526,214 | ||||
Issued in reinvestment of distributions | 7,577 | 33,543 | ||||
Redeemed | (39,303,368 | ) | (75,394,148 | ) | ||
Net increase (decrease) in shares of the fund | (3,747,021 | ) | (6,834,391 | ) |
See Notes to Financial Statements.
14
Notes to Financial Statements |
NOVEMBER 30, 2015 (UNAUDITED)
1. Organization
American Century Municipal Trust (the trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Massachusetts business trust. Tax-Free Money Market Fund (the fund) is one fund in a series issued by the trust. The fund is diversified as defined under Rule 2a-7 of the 1940 Act. The fund’s investment objectives are to seek safety of principal and high current income that is exempt from federal income tax.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value (NAV) per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. Investments are generally valued at amortized cost, which approximates fair value. Open-end management investment companies are valued at the reported NAV per share. If the fund determines that the valuation methods do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Trustees or its delegate, in accordance with policies and procedures adopted by the Board of Trustees.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Distributions to Shareholders — Distributions from net investment income, if any, are declared daily and paid monthly. The fund may make short-term capital gains distributions to comply with the distribution requirements of the Internal Revenue Code. The fund does not expect to realize any long-term capital gains, and accordingly, does not expect to pay any long-term capital gains distributions.
Indemnifications — Under the trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
15
3. Fees and Transactions with Related Parties
Certain officers and trustees of the trust are also officers and/or directors of American Century Companies, Inc. (ACC). The trust's investment advisor, American Century Investment Management, Inc. (ACIM), the trust's distributor, American Century Investment Services, Inc., and the trust's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The trust has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee). The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent trustees (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on the daily net assets of the fund and paid monthly in arrears. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds. The rates for the Investment Category Fee range from 0.1570% to 0.2700%. The rates for the Complex Fee range from 0.2500% to 0.3100%. In order to maintain a positive yield, ACIM may voluntarily waive a portion of the management fee on a daily basis. The fee waiver may be revised or terminated at any time by the investment advisor without notice. The effective annual management fee for the six months ended November 30, 2015 was 0.49% before waiver and 0.16% after waiver.
Trustees’ Fees and Expenses — The Board of Trustees is responsible for overseeing the investment advisor’s management and operations of the fund. The trustees receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
4. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments. There were no significant transfers between levels during the period.
The following is a summary of the level classifications as of period end. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Municipal Securities | — | $ | 147,534,509 | — | ||||
Temporary Cash Investments | $ | 6,400,000 | — | — | ||||
$ | 6,400,000 | $ | 147,534,509 | — |
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5. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
6. Money Market Fund Reform
In July 2014, the Securities and Exchange Commission adopted amendments to the rules that govern money market mutual funds. The amendments consist of structural and operational reforms intended to make money market funds more resilient for investors. In response to the amendments to the rules, beginning in the fall of 2016, the board will have the ability to impose a liquidity fee or suspend redemptions in times of severe market stress and the fund will only be available to shareholders who are retail investors. The fund will continue to seek to maintain a stable NAV. Management anticipates there will be no changes to the financial statement disclosures.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended May 31 (except as noted) | ||||||||||||||
Per-Share Data | Ratios and Supplemental Data | |||||||||||||
Distributions From: | Ratio to Average Net Assets of: | |||||||||||||
Net Asset Value, Beginning of Period | Income From Investment Operations: Net Investment Income (Loss) | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(1) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Net Assets, End of Period (in thousands) | |||
Investor Class | ||||||||||||||
2015(2) | $1.00 | —(3) | —(3) | — | —(3) | $1.00 | 0.01% | 0.17%(4) | 0.50%(4) | 0.01%(4) | (0.32)%(4) | $156,572 | ||
2015 | $1.00 | —(3) | —(3) | —(3) | —(3) | $1.00 | 0.02% | 0.17% | 0.50% | 0.01% | (0.32)% | $160,314 | ||
2014 | $1.00 | —(3) | —(3) | —(3) | —(3) | $1.00 | 0.04% | 0.24% | 0.50% | 0.01% | (0.25)% | $167,166 | ||
2013 | $1.00 | —(3) | —(3) | — | —(3) | $1.00 | 0.01% | 0.40% | 0.50% | 0.01% | (0.09)% | $182,944 | ||
2012 | $1.00 | —(3) | —(3) | — | —(3) | $1.00 | 0.01% | 0.43% | 0.50% | 0.01% | (0.06)% | $208,238 | ||
2011 | $1.00 | —(3) | —(3) | — | —(3) | $1.00 | 0.07% | 0.45% | 0.50% | 0.07% | 0.02% | $237,389 |
Notes to Financial Highlights |
(1) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(2) | Six months ended November 30, 2015 (unaudited). |
(3) | Per-share amount was less than $0.005. |
(4) | Annualized. |
See Notes to Financial Statements.
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Approval of Management Agreement |
At a meeting held on June 16, 2015, the Fund’s Board of Trustees unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s directors/trustees, including a majority of the independent Trustees, each year. The Board regards this annual evaluation and renewal as one of its most important responsibilities.
The independent Trustees have memorialized a statement regarding the relationship between their ongoing obligations to oversee and evaluate the performance of the Advisor and their annual consideration of renewal of the management agreement. In that statement, the independent Trustees noted that their assessment of the Advisor’s performance is an ongoing process that takes place over the entire year and is informed by all of the extensive information that the Board and its committees receive and consider over time. This information, together with the materials provided in connection with the review, are central to the Board’s assessment of the Advisor’s performance and its determination whether to renew the Fund’s management agreement.
Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and analysis relating to the proposed renewal. This information and analysis was compiled by the Advisor and certain independent providers of evaluation data concerning the Fund and the services provided to the Fund by the Advisor.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor included, but was not limited to, the following:
• | the nature, extent, and quality of investment management, shareholder services, and other services provided by the Advisor to the Fund; |
• | the wide range of other programs and services the Advisor provides to the Fund and its shareholders on a routine and non-routine basis; |
• | the investment performance of the Fund, including data comparing the Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies; |
• | the cost of owning the Fund compared to the cost of owning similar funds; |
• | the compliance policies, procedures, and regulatory experience of the Fund's service providers; |
• | financial data showing the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the overall profitability of the Advisor; |
• | possible economies of scale associated with the Advisor’s management of the Fund and other accounts under its management; |
• | data comparing services provided and charges to the Advisor's other investment management clients; |
• | acquired fund fees and expenses; |
• | payments by the Fund and the Advisor to financial intermediaries; and |
• | any collateral benefits derived by the Advisor from the management of the Fund. |
In keeping with its practice, the Board held two in-person meetings to review and discuss the information provided in response to their request. The independent Trustees also had the benefit of the advice of their independent counsel throughout the process.
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Factors Considered
The Trustees considered all of the information provided by the Advisor, the independent data providers, and the independent Trustees’ independent counsel in connection with the review. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Trustees did not identify any single factor as being all-important or controlling and each Trustee may have attributed different levels of importance to different factors. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:
Nature, Extent and Quality of Services - Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that under the management agreement, the Advisor provides or arranges at its own expense a wide variety of services including:
• | constructing and designing the Fund |
• | portfolio research and security selection |
• | initial capitalization/funding |
• | securities trading |
• | Fund administration |
• | custody of Fund assets |
• | daily valuation of the Fund’s portfolio |
• | shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications |
• | legal services (except the independent Trustees’ counsel) |
• | regulatory and portfolio compliance |
• | financial reporting |
• | marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans) |
The Board noted that many of these services have expanded over time both in terms of quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management, Shareholder, and Other Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and approved strategies. Further, the Trustees recognize that the Advisor has an obligation to seek the best execution of fund trades. In providing these services, the Advisor utilizes teams of investment professionals (portfolio managers, analysts, research assistants, and securities traders) who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Portfolio Committee, regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Trustees also review detailed performance information during the management agreement approval process. If performance concerns are identified, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The Fund’s performance was in the first quartile of its peer group for the one-, three-, five-, and ten-year periods reviewed by the Board. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
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Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities.
Certain aspects of shareholder and transfer agency service level efficiency and the quality of securities trading activities are measured by independent third party providers and are presented in comparison to other fund groups not managed by the Advisor. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund, its overall profitability, and its financial condition. The Trustees have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the current management fee. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders enhanced and expanded services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, taxes, interest, extraordinary expenses, the fees and expenses of the Fund’s independent Trustees (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing, and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unified fee to the total expense ratio of peer funds. Given the industry-wide proliferation of fee waivers to support positive money market fund yields, the Board recognized that net fee comparisons may be less statistically relevant than in prior years. With that in mind, the Board reviewed peer data on both a gross basis and net of applicable waivers. The Board concluded that
21
the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Trustees also requested and received a description of payments made to intermediaries by the Fund and the Advisor. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. The Board noted that the Advisor’s primary business is managing mutual funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor receives proprietary research from broker-dealers that execute fund portfolio transactions. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Trustees. As a result of this process, the Board, including all of the independent Trustees and assisted by the advice of independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and throughout the year, concluded that the management agreement between the Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.
22
Additional Information |
Proxy Voting Policies
Descriptions of the principles and policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund are available without charge, upon request, by calling 1-800-345-2021 or visiting the "About Us" page of American Century Investments’ website at americancentury.com. A description of the policies is also available on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
23
Notes |
24
Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century Municipal Trust | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2016 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-87764 1601 |
ITEM 2. CODE OF ETHICS.
Not applicable for semiannual report filings.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semiannual report filings.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semiannual report filings.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) | The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form. |
(b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During the reporting period, there were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board.
ITEM 11. CONTROLS AND PROCEDURES.
(a) | The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. |
(b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
ITEM 12. EXHIBITS.
(a)(1) | Not applicable for semiannual report filings. |
(a)(2) | Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are filed and attached hereto as EX-99.CERT. |
(a)(3) | Not applicable. |
(b) | A certification by the registrant’s chief executive officer and chief financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is furnished and attached hereto as EX- 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | American Century Municipal Trust | |||
By: | /s/ Jonathan S. Thomas | |||
Name: | Jonathan S. Thomas | |||
Title: | President | |||
Date: | January 28, 2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Jonathan S. Thomas | ||
Name: | Jonathan S. Thomas | ||
Title: | President | ||
(principal executive officer) | |||
Date: | January 28, 2016 |
By: | /s/ C. Jean Wade | ||
Name: | C. Jean Wade | ||
Title: | Vice President, Treasurer, and | ||
Chief Financial Officer | |||
(principal financial officer) | |||
Date: | January 28, 2016 |