Municipal Tax Free Bond Fund (SOAMX)
Seeks high current income that is exempt from federal income tax, including alternative minimum tax (AMT). (Income may be subject to state and local taxes).
Seeks to achieve its investment objectives by investing, under usual circumstances, at least 80% of its assets in municipal bonds.
The portfolio managers seek out municipal bonds with the potential to offer high current income, generally focusing on municipal bonds that can provide consistently attractive
Ratings apply to the bonds in the portfolio, excluding cash. They do not remove market risk associated with the fund.
Bond ratings apply to underlying holdings of the Fund and not the Fund itself. The portfolio is rated by Moody’s Investor Services and Standard & Poors (S&P). In determining the percentage breakdown of credit ratings of the bonds in the portfolio, the higher of the two ratings is taken thus improving the overall evaluation of the portfolio.
Moody’s assigns bond credit ratings ranging from highest to lowest of Aaa, Aa, A, Baa, Ba, Caa, Ca, C, with WR and NR as withdrawn and not rated. S&P assigns bond credit ratings from highest to the of AAA, AA, A, BBB, BB, B, CCC, CC, C, D.
Ratings are subject to change.
Fund Symbol: SOAMX
Inception Date: 02/28/2008
Net Assets: $35,921,911
Dividend Frequency: Monthly
Gross Expense Ratio: 1.19%
Net Expense Ratio:* 0.92%
*The adviser has contractually agreed
to waive advisory fees and/or reimburse expenses for the Municipal Tax Free Bond Fund until May 1, 2024
This fund may be suitable for intermediate to long-term investors who seek high current income exempt from federal income tax. Investors should be willing to accept the risks and potential volatility of such investments.
The Fund has holdings in 27 states and 1 district:
Top Holdings by Percentage
This fund holds 145 positions.
School Board of Miami-Dade County (The), Certificates of Participation, 4.00%, 2033-02-01
City of Orlando, FL, Public Improvements, Revenue Bonds, 5.00%, 2046-10-01
Nevada System of Higher Education, Certificates of Participation, 4.00%, 2027-07-01
California State Public Works Board, Revenue Bonds, 5.00%, 2029-11-01
Indiana Finance Authority Wastewater Utility Revenue, Revenue Bonds, 5.00%, 2046-10-01
Southern Minnesota Municipal Power Agency Power Supply System, Revenue Bonds, 5.00%, 2041-01-01
Hudson Yards Infrastructure Corp., Revenue Bonds, 4.00%, 2044-02-15
State of Connecticut, General Obligation Unlimited, 5.00%, 2032-04-15
Indiana Finance Authority Wastewater Utility Revenue, Revenue Bonds, 5.00%, 2050-10-01
Massachusetts School Building Authority, Revenue Bonds, 5.25%, 2048-02-15
Percentage of portfolio's income that was exempt from these states' income taxes in 2022:
Percentages include Puerto Rico
and the Virgin Islands
Source: Ultimus Fund Solutions, LLC 6/30/2023
Principal Risks of Investing in the Municipal Tax Free Bond Fund: An investment in the Municipal Tax Free Bond Fund could lose money over short or long periods of time. You should expect and be able to bear the risk that the Municipal Tax Free Bond Fund’s share price will fluctuate within a wide range. There is no assurance that the Municipal Tax Free Bond Fund will achieve its investment objective. The Municipal Tax Free Bond Fund’s performance could be adversely affected by the following principal risks:
Interest Rate Risk, which is the possibility that overall bond prices will decline because of rising interest rates. Interest rate risk is expected to be high for the Municipal Tax Free Bond Fund because it invests mainly in long-term bonds, whose prices are much more sensitive to interest rate fluctuations than are the prices of short-term bonds.
Credit Risk, which is the possibility that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Credit risk should be moderate to high for the Municipal Tax Free Bond Fund because it seeks to invest a portion of the Fund’s assets in low-quality bonds.
Credit Risks of Lower-Grade Securities, which is the possibility that municipal securities rated below investment grade, or unrated of similar quality (i.e., “junk bonds”), may be subject to greater price fluctuations and risks of loss of income and principal than investment grade municipal securities. Securities that are (or that have fallen) below investment-grade have a greater risk that the issuers may not meet their debt obligations. These types of securities are generally considered speculative in relation to the issuer’s ongoing ability to make principal and interest payments. During periods of rising interest rates or economic downturn, the trading market for these securities may not be active and may reduce the Municipal Tax Free Bond Fund’s ability to sell these securities (see “Liquidity Risk”) at an acceptable price. If the issuer of securities defaults on its payment of interest or principal, the Municipal Tax Free Bond Fund may lose its entire investment in those securities.
Call Risk, which is the possibility that during periods of falling interest rates, issuers of callable bonds may call (redeem) higher coupon rate bonds before their maturity dates. The Municipal Tax Free Bond Fund would then lose potential price appreciation and would be forced to reinvest the unanticipated
proceeds at lower interest rates, resulting in a decline in the Municipal Tax Free Bond Fund’s income. Call risk is typically higher for long-term bonds.
Tobacco Bond Risk, which is the possibility that payments of principal and interest, which are not generally backed by the full faith, credit or taxing
power of the state or local government, may, with respect to “Tobacco Settlement Revenue Bonds,” be affected by fluctuations in the future revenue flow
from tobacco companies used to secure these payments or, in the case of “Subject to Appropriation Tobacco Bonds,” by a state’s inability or failure to
pass a specific periodic appropriation to pay interest and/or principal on the bonds as the payments come due.
There are risks inherent in investing. Past performance is no guarantee of future results.
Offering by prospectus only. Investors are advised to consider the Fund’s investment objectives, risks, charges and expenses before investing.
The prospectus contains this and other information about the investment company. Read the prospectus carefully before you invest or send money.
Neither the information, nor any statement expressed or implied herein, constitutes solicitation by David Lerner Associates, Inc. for the purchase or sale of any securities. For complete information regarding performance data current to the most recent month end and to obtain a prospectus, contact: David Lerner Associates, Inc., 477 Jericho Turnpike, P.O. Box 9006, Syosset, New York 11791-9006, 1-800-367-3000.
Member FINRA & SIPC.