STATEMENT
OF INVESTMENTS
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund
November 30, 2022 (Unaudited)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 99.4% | |||||||||
Alabama - .8% | |||||||||
Black Belt Energy Gas District, Revenue Bonds (Gas Project) | 4.00 | 12/1/2026 | 750,000 | a | 742,752 | ||||
Illinois - 3.2% | |||||||||
Chicago II, GO, Refunding, Ser. A | 5.00 | 1/1/2034 | 500,000 | 500,987 | |||||
Chicago II, GO, Refunding, Ser. A | 5.00 | 1/1/2029 | 500,000 | 511,160 | |||||
Chicago II, GO, Refunding, Ser. A | 5.00 | 1/1/2026 | 500,000 | 508,724 | |||||
Chicago II, GO, Ser. A | 5.00 | 1/1/2024 | 500,000 | 504,316 | |||||
Chicago Park District, GO, Refunding, Ser. C | 4.00 | 1/1/2035 | 1,150,000 | 1,108,344 | |||||
3,133,531 | |||||||||
Iowa - .5% | |||||||||
PEFA Inc., Revenue Bonds (Gas Project) | 5.00 | 9/1/2026 | 525,000 | a | 537,918 | ||||
Kentucky - 3.0% | |||||||||
Kentucky Public Energy Authority, Revenue Bonds, Ser. B | 4.00 | 1/1/2025 | 1,000,000 | a | 997,398 | ||||
Kentucky Public Energy Authority, Revenue Bonds, Ser. C1 | 4.00 | 6/1/2025 | 2,000,000 | a | 1,988,251 | ||||
2,985,649 | |||||||||
Michigan - 1.4% | |||||||||
Central Michigan University, Revenue Bonds, Refunding (LOC; TD Bank NA) Ser. A | 1.83 | 10/1/2032 | 1,400,000 | b | 1,400,000 | ||||
Nebraska - 1.0% | |||||||||
Central Plains Energy, Revenue Bonds, Refunding (Central Plains Energy Project) | 4.00 | 8/1/2025 | 1,000,000 | a | 1,003,964 | ||||
New Jersey - 2.5% | |||||||||
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A | 5.00 | 6/1/2031 | 625,000 | 651,208 | |||||
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A | 5.00 | 6/1/2029 | 875,000 | 913,836 | |||||
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A | 5.00 | 6/1/2028 | 875,000 | 914,817 | |||||
2,479,861 | |||||||||
New York - 5.0% | |||||||||
New York Liberty Development Corp., Revenue Bonds, Refunding (Bank of America Tower) | 2.63 | 9/15/2069 | 1,675,000 | 1,504,386 | |||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 99.4% (continued) | |||||||||
New York - 5.0% (continued) | |||||||||
New York Liberty Development Corp., Revenue Bonds, Refunding (Class 1-3 World Trade Center Project) | 5.00 | 11/15/2044 | 2,250,000 | c | 2,126,721 | ||||
New York Transportation Development Corp., Revenue Bonds (Delta Air Lines Inc.) | 5.00 | 1/1/2024 | 1,350,000 | 1,357,436 | |||||
4,988,543 | |||||||||
Pennsylvania - 81.6% | |||||||||
Allegheny County Higher Education Building Authority, Revenue Bonds, Refunding (Duquesne University) | 5.00 | 3/1/2026 | 1,000,000 | 1,060,409 | |||||
Allegheny County Higher Education Building Authority, Revenue Bonds, Refunding (Duquesne University) Ser. 20 | 5.00 | 3/1/2033 | 610,000 | d | 690,240 | ||||
Allegheny County Higher Education Building Authority, Revenue Bonds, Refunding (Duquesne University) Ser. A | 4.00 | 3/1/2037 | 1,000,000 | 975,245 | |||||
Allegheny County Hospital Development Authority, Revenue Bonds, Refunding (Allegheny Health Network Obligated Group) Ser. A | 5.00 | 4/1/2030 | 1,000,000 | 1,071,072 | |||||
Allegheny County Hospital Development Authority, Revenue Bonds, Refunding (UPMC Obligated Group) Ser. A | 5.00 | 7/15/2034 | 690,000 | 741,235 | |||||
Bucks County Industrial Development Authority, Revenue Bonds, Refunding (George School Project) | 3.00 | 9/15/2038 | 850,000 | 746,722 | |||||
Bucks County Industrial Development Authority, Revenue Bonds, Refunding (George School Project) | 3.00 | 9/15/2036 | 800,000 | 727,960 | |||||
Bucks County Industrial Development Authority, Revenue Bonds, Refunding (George School Project) | 3.00 | 9/15/2035 | 775,000 | 717,767 | |||||
Capital Region Water, Revenue Bonds, Refunding | 5.00 | 7/15/2026 | 750,000 | 803,390 | |||||
Chester County Health & Education Facilities Authority, Revenue Bonds (Main Line Health System Inc. Obligated Group) Ser. A | 4.00 | 9/1/2038 | 600,000 | 595,100 | |||||
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 99.4% (continued) | |||||||||
Pennsylvania - 81.6% (continued) | |||||||||
Commonwealth Financing Authority, Revenue Bonds | 5.00 | 6/1/2032 | 1,500,000 | 1,632,328 | |||||
Cumberland County Municipal Authority, Revenue Bonds (Penn State Health Obligated Group) | 5.00 | 11/1/2034 | 1,000,000 | 1,073,251 | |||||
Dallastown Area School District, GO, Refunding (Insured; State Aid Withholding) | 5.00 | 4/15/2031 | 1,400,000 | 1,463,277 | |||||
Dauphin County General Authority, Revenue Bonds, Refunding (Pinnacle Health Systems Project) Ser. A | 5.00 | 6/1/2029 | 1,000,000 | 1,046,792 | |||||
Delaware Valley Regional Finance Authority, Revenue Bonds (LOC; TD BANK NA) Ser. A | 1.80 | 5/1/2055 | 100,000 | b | 100,000 | ||||
Delaware Valley Regional Finance Authority, Revenue Bonds, Ser. A | 2.00 | 10/1/2029 | 1,000,000 | 895,153 | |||||
Derry Township Industrial & Commercial Development Authority, Revenue Bonds, Refunding | 4.00 | 11/15/2028 | 425,000 | 447,334 | |||||
Derry Township Industrial & Commercial Development Authority, Revenue Bonds, Refunding | 4.00 | 11/15/2029 | 355,000 | 375,586 | |||||
Derry Township Industrial & Commercial Development Authority, Revenue Bonds, Refunding | 4.00 | 11/15/2027 | 745,000 | 782,446 | |||||
Geisinger Authority, Revenue Bonds, Refunding (Geisinger Health System Obligated Group) | 5.00 | 4/1/2035 | 1,100,000 | 1,171,497 | |||||
Geisinger Authority, Revenue Bonds, Refunding (Geisinger Health System Obligated Group) | 5.00 | 4/1/2030 | 1,005,000 | a | 1,095,237 | ||||
Latrobe Industrial Development Authority, Revenue Bonds, Refunding (Seton Hill University) | 5.00 | 3/1/2029 | 150,000 | 155,011 | |||||
Latrobe Industrial Development Authority, Revenue Bonds, Refunding (Seton Hill University) | 5.00 | 3/1/2028 | 110,000 | 113,492 | |||||
Latrobe Industrial Development Authority, Revenue Bonds, Refunding (Seton Hill University) | 5.00 | 3/1/2031 | 175,000 | 180,687 | |||||
Latrobe Industrial Development Authority, Revenue Bonds, Refunding (Seton Hill University) | 5.00 | 3/1/2030 | 135,000 | 139,260 | |||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 99.4% (continued) | |||||||||
Pennsylvania - 81.6% (continued) | |||||||||
Latrobe Industrial Development Authority, Revenue Bonds, Refunding (Seton Hill University) | 5.00 | 3/1/2027 | 145,000 | 149,199 | |||||
Latrobe Industrial Development Authority, Revenue Bonds, Refunding (Seton Hill University) | 5.00 | 3/1/2024 | 80,000 | 81,039 | |||||
Latrobe Industrial Development Authority, Revenue Bonds, Refunding (Seton Hill University) | 5.00 | 3/1/2025 | 115,000 | 117,429 | |||||
Latrobe Industrial Development Authority, Revenue Bonds, Refunding (Seton Hill University) | 5.00 | 3/1/2026 | 150,000 | 153,868 | |||||
Lebanon School District, GO, Refunding (Insured; Assured Guaranty Municipal Corp.) | 4.00 | 6/15/2031 | 1,500,000 | 1,566,745 | |||||
Lower Merion Township, GO, Ser. B | 4.00 | 7/15/2034 | 515,000 | 522,062 | |||||
Lower Merion Township, GO, Ser. B | 4.00 | 7/15/2031 | 460,000 | 468,455 | |||||
Montgomery County Higher Education & Health Authority, Revenue Bonds, Refunding (The Hill School Project) | 5.00 | 8/15/2037 | 500,000 | 526,471 | |||||
Montgomery County Higher Education & Health Authority, Revenue Bonds, Refunding (Thomas Jefferson University Obligated Group) | 5.00 | 9/1/2030 | 1,600,000 | 1,734,380 | |||||
Montgomery County Higher Education & Health Authority, Revenue Bonds, Refunding (Thomas Jefferson University Project) | 4.00 | 9/1/2034 | 1,000,000 | 994,656 | |||||
Mount Lebanon Hospital Authority, Revenue Bonds (St. Clair Memorial Hospital Project) | 5.00 | 7/1/2035 | 1,000,000 | 1,065,669 | |||||
Mount Lebanon Hospital Authority, Revenue Bonds (St. Clair Memorial Hospital Project) | 5.00 | 7/1/2036 | 1,105,000 | 1,171,202 | |||||
Northampton County General Purpose Authority, Revenue Bonds, Refunding (Lafayette College) Ser. A | 5.00 | 11/1/2023 | 1,000,000 | e | 1,022,147 | ||||
Pennsylvania, GO, Ser. 1st | 3.00 | 5/15/2034 | 1,000,000 | 935,319 | |||||
Pennsylvania Economic Development Financing Authority, Revenue Bonds, Refunding (UPMC Obligated Group) Ser. A | 4.00 | 10/15/2037 | 1,375,000 | 1,353,330 | |||||
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 99.4% (continued) | |||||||||
Pennsylvania - 81.6% (continued) | |||||||||
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds (Insured; Build American Mutual) Ser. AT1 | 5.00 | 6/15/2027 | 1,000,000 | 1,070,780 | |||||
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds (The Trustees of the University of Pennsylvania) Ser. A | 5.00 | 8/15/2032 | 1,000,000 | 1,082,759 | |||||
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds (The University of Pennsylvania Health System Obligated Group) | 5.00 | 8/15/2033 | 1,000,000 | 1,105,587 | |||||
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Refunding (Drexel University) | 5.00 | 5/1/2028 | 1,855,000 | 1,982,266 | |||||
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Refunding (Drexel University) (Insured; Assured Guaranty Municipal Corp.) Ser. A | 5.00 | 5/1/2029 | 1,115,000 | 1,231,612 | |||||
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Refunding (The University of Pennsylvania Health System Obligated Group) | 5.00 | 8/15/2035 | 1,200,000 | 1,252,101 | |||||
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Refunding (The University of Pennsylvania Health System Obligated Group) | 5.00 | 8/15/2030 | 375,000 | 428,206 | |||||
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Refunding (The University of Pennsylvania Health System Obligated Group) | 5.00 | 8/15/2029 | 375,000 | 423,185 | |||||
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Refunding (University of Sciences) | 5.00 | 11/1/2025 | 1,000,000 | 1,046,512 | |||||
Pennsylvania Housing Finance Agency, Revenue Bonds, Refunding, Ser. 122 | 3.65 | 10/1/2032 | 1,070,000 | 1,050,148 | |||||
Pennsylvania Housing Finance Agency, Revenue Bonds, Ser. 2019-131A | 3.50 | 4/1/2049 | 1,360,000 | 1,348,395 | |||||
Pennsylvania Turnpike Commission, Revenue Bonds, Refunding | 5.00 | 12/1/2040 | 1,260,000 | 1,328,802 | |||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 99.4% (continued) | |||||||||
Pennsylvania - 81.6% (continued) | |||||||||
Pennsylvania Turnpike Commission, Revenue Bonds, Refunding (LOC; TD Bank NA) | 1.81 | 12/1/2038 | 100,000 | b | 100,000 | ||||
Pennsylvania Turnpike Commission, Revenue Bonds, Refunding (LOC; TD Bank NA) | 1.81 | 12/1/2039 | 1,800,000 | b | 1,800,000 | ||||
Pennsylvania Turnpike Commission, Revenue Bonds, Refunding, Ser. 2nd | 5.00 | 12/1/2038 | 1,230,000 | 1,310,412 | |||||
Pennsylvania Turnpike Commission, Revenue Bonds, Refunding, Ser. A1 | 5.25 | 12/1/2035 | 2,280,000 | 2,384,872 | |||||
Pennsylvania Turnpike Commission, Revenue Bonds, Refunding, Ser. B2 | 5.00 | 6/1/2032 | 1,000,000 | 1,066,834 | |||||
Philadelphia, GO, Refunding | 5.00 | 8/1/2029 | 1,000,000 | 1,076,597 | |||||
Philadelphia, GO, Refunding (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 8/1/2030 | 1,275,000 | 1,380,654 | |||||
Philadelphia, GO, Refunding, Ser. A | 5.00 | 8/1/2029 | 1,000,000 | 1,077,496 | |||||
Philadelphia Airport, Revenue Bonds, Refunding, Ser. B | 5.00 | 7/1/2025 | 1,000,000 | 1,037,603 | |||||
Philadelphia Airport, Revenue Bonds, Refunding, Ser. B | 5.00 | 7/1/2027 | 1,000,000 | 1,059,535 | |||||
Philadelphia Airport, Revenue Bonds, Refunding, Ser. B | 5.00 | 7/1/2031 | 1,520,000 | 1,597,452 | |||||
Philadelphia Authority for Industrial Development, Revenue Bonds (Green Bond) (Philadelphia Museum) Ser. A | 5.00 | 2/15/2034 | 1,250,000 | 1,330,576 | |||||
Philadelphia Authority for Industrial Development, Revenue Bonds, Refunding (St. Joseph's University) | 5.00 | 11/1/2026 | 850,000 | 898,098 | |||||
Philadelphia Authority for Industrial Development, Revenue Bonds, Refunding (St. Joseph's University) | 5.00 | 11/1/2027 | 850,000 | 907,031 | |||||
Philadelphia Industrial Development Authority, Revenue Bonds, Refunding (Children's Hospital of Philadelphia Project) | 4.00 | 7/1/2036 | 1,000,000 | 1,008,399 | |||||
Philadelphia Water & Wastewater, Revenue Bonds, Ser. C | 5.00 | 6/1/2037 | 2,000,000 | 2,231,612 | |||||
Pittsburgh, GO, Refunding, Ser. A | 3.00 | 9/1/2033 | 325,000 | 312,509 | |||||
Pittsburgh, GO, Refunding, Ser. A | 3.00 | 9/1/2032 | 500,000 | 481,381 | |||||
Pittsburgh & Allegheny County Sports & Exhibition Authority, Revenue Bonds | 5.00 | 12/15/2032 | 1,000,000 | 1,073,582 | |||||
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 99.4% (continued) | |||||||||
Pennsylvania - 81.6% (continued) | |||||||||
Pittsburgh & Allegheny County Sports & Exhibition Authority, Revenue Bonds | 5.00 | 12/15/2024 | 940,000 | 979,134 | |||||
Pittsburgh Water & Sewer Authority, Revenue Bonds (Insured; Assured Guaranty Municipal Corp.) Ser. B | 5.00 | 9/1/2023 | 1,000,000 | e | 1,017,957 | ||||
Southeastern Pennsylvania Transportation Authority, Revenue Bonds | 5.00 | 6/1/2038 | 2,500,000 | 2,805,011 | |||||
Susquehanna Township School District, GO, Refunding (Insured; State Aid Withholding) Ser. R | 3.00 | 5/15/2031 | 1,730,000 | 1,682,737 | |||||
The Canonsburg-Houston Joint Authority, Revenue Bonds, Ser. A | 5.00 | 12/1/2023 | 1,260,000 | 1,285,734 | |||||
The Pennsylvania University, Revenue Bonds, Ser. A | 5.00 | 9/1/2033 | 1,010,000 | 1,085,634 | |||||
The Philadelphia School District, GO (Insured; State Aid Withholding) Ser. A | 5.00 | 9/1/2028 | 500,000 | 545,121 | |||||
Tredyffrin Easttown School District, GO (Insured; State Aid Withholding) | 5.00 | 2/15/2034 | 240,000 | 260,707 | |||||
Upper Merion Area School District, GO (Insured; State Aid Withholding) | 5.00 | 1/15/2026 | 275,000 | e | 294,509 | ||||
Upper Merion Area School District, GO (Insured; State Aid Withholding) | 5.00 | 1/15/2026 | 250,000 | e | 267,735 | ||||
Upper Moreland Township School District, GO (Insured; State Aid Withholding) | 4.00 | 10/1/2033 | 780,000 | 782,003 | |||||
Upper St. Clair Township School District, GO (Insured; State Aid Withholding) | 5.00 | 10/1/2041 | 1,000,000 | 1,038,378 | |||||
West Chester Area School District, GO, Refunding (Insured; State Aid Withholding) | 2.00 | 3/15/2031 | 820,000 | 720,174 | |||||
West Mifflin School District, GO, Refunding (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 4/1/2026 | 1,000,000 | 1,065,073 | |||||
Whitemarsh Township, GO, Refunding | 4.00 | 11/15/2039 | 1,000,000 | 1,005,448 | |||||
80,982,813 | |||||||||
Texas - .2% | |||||||||
Texas, GO, Ser. A | 1.92 | 6/1/2045 | 200,000 | b | 200,000 | ||||
U.S. Related - .2% | |||||||||
Puerto Rico, Notes | 0.01 | 11/1/2051 | 560,320 | b | 198,914 | ||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Total Investments (cost $102,826,951) | 99.4% | 98,653,945 | ||
Cash and Receivables (Net) | 0.6% | 602,596 | ||
Net Assets | 100.0% | 99,256,541 |
GO—General Obligation
a These securities have a put feature; the date shown represents the put date and the bond holder can take a specific action to retain the bond after the put date.
b The Variable Rate shall be determined by the Remarketing Agent in its sole discretion based on prevailing market conditions and may, but need not, be established by reference to one or more financial indices.
c Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2022, these securities were valued at $2,126,721 or 2.14% of net assets.
d Security purchased on a when-issued or delayed basis for which the fund has not taken delivery as of November 30, 2022.
e These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date.
STATEMENT
OF FINANCIAL FUTURES
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund
November 30, 2022 (Unaudited)
Futures | ||||||
Description | Number of | Expiration | Notional | Market | Unrealized (Depreciation) ($) | |
Futures Short | ||||||
U.S. Treasury Ultra Long Bond | 4 | 3/22/2023 | 536,419 | 545,125 | (8,706) | |
Ultra 10 Year U.S. Treasury Notes | 33 | 3/22/2023 | 3,906,130 | 3,948,656 | (42,526) | |
Gross Unrealized Depreciation | (51,232) | |||||
See notes to financial statements.
STATEMENT
OF INVESTMENTS
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund
November 30, 2022 (Unaudited)
The following is a summary of the inputs used as of November 30, 2022 in valuing the fund’s investments:
Level 1-Unadjusted Quoted Prices | Level 2- Other Significant Observable Inputs | Level 3-Significant Unobservable Inputs | Total | |||
Assets ($) | ||||||
Investments in Securities:† | ||||||
Municipal Securities | - | 98,653,945 | - | 98,653,945 | ||
Liabilities ($) | ||||||
Other Financial Instruments: | ||||||
Futures†† | (51,232) | - | - | (51,232) | ||
† See Statement of Investments for additional detailed categorizations, if any.
†† Amount shown represents unrealized appreciation (depreciation) at period end.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund is an investment company and applies the accounting and reporting guidance of the FASB ASC Topic 946 Financial Services-Investment Companies. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:
The Trust’s Board of Trustees (the “Board”) has designated the Adviser as the fund’s valuation designee, effective September 8, 2022, to make all fair value determinations with respect to the fund’s portfolio investments, subject to the Board’s oversight and pursuant to Rule 2a-5 under the Act.
Investments in municipal securities are valued each business day by an independent pricing service (the “Service”) approved by the Board. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Municipal investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of the following: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. The Service is engaged under the general oversight of the Board. All of the preceding securities are generally categorized within Level 2 of the fair value hierarchy.
When market quotations or official closing prices are not readily available, or are determined not to accurately reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.
For securities where observable inputs are limited, assumptions about market activity and risk are used and such securities are generally categorized within Level 3 of the fair value hierarchy.
Derivatives: A derivative is a financial instrument whose performance is derived from the performance of another asset. Each type of derivative instrument that was held by the fund at November 30, 2022 is discussed below.
Futures: In the normal course of pursuing its investment objective, the fund is exposed to market risk, including interest rate risk as a result of changes in value of underlying financial instruments. The fund invests in futures in order to manage its exposure to or protect against changes in the market. A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a counterparty, which consist of cash or cash equivalents. The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations. When the contracts are closed, the fund recognizes a realized gain or loss which is reflected in the Statement of Operations. There is minimal counterparty credit risk to the fund with futures since they are exchange traded, and the exchange guarantees the futures against default.
At November 30, 2022, accumulated net unrealized depreciation on investments was $4,173,006, consisting of $265,709 gross unrealized appreciation and $4,438,715 gross unrealized depreciation.
At November 30, 2022, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).
Additional investment related disclosures are hereby incorporated by reference to the annual and semi-annual reports previously filed with the SEC on Form N-CSR.