January 22, 1998
Tax-Free New Jersey Fund
Tax-Free Ohio Fund
Tax-Free Pennsylvania Fund
A Class/B Class/C Class
Supplement to Prospectus dated September 2, 1997
The following replaces information under Summary of Expenses
for the Class A, B and C Shares of Tax-Free New Jersey Fund and
Tax-Free Ohio Fund:
Annual Operating Expenses
(as a percentage of Class A Class B Class C
average daily net assets) Shares Shares Shares
Management Fees
(after voluntary
waivers) . . . . . . . . 0.00%+ 0.00%+ 0.00%+
12b-1 Plan Expenses
(including
service fees). . . . . . 0.25%++ 1.00%++ 1.00%++
Other Operating Expenses . . . 0.25%+ 0.25%+ 0.25%+
------- ------- ------
Total Operating Expenses
(after voluntary
waivers). . . . . . . . 0.50%+ 1.25%+ 1.25%+
==== ==== ====
+ Total Operating Expenses and Other Operating Expenses for
Class A Shares, Class B Shares and Class C Shares are based on
estimated amounts for the first full fiscal year of the Classes,
after giving effect to the voluntary expense waiver. Beginning
January 22, 1998, the Manager has elected voluntarily to waive
that portion, if any, of the annual management fees payable by a
Fund and to pay certain expenses of that Fund to the extent
necessary to ensure that the Total Operating Expenses of each
Class of a Fund, excluding each such Class' 12b-1 fees, do not
exceed 0.25% through July 31, 1998. From the commencement of
operations through January 21, 1998, commitments of waiver and
payment by the Manager that were different from that currently in
effect for each Fund were in place. The expense information
previously appearing in the Summary of Expenses table with
respect to these Funds has been restated restated to reflect the
current fees. See the information provided below. If the
voluntary expense waivers by the Manager were not in effect, it
is estimated that for the first full year, the Total Operating
Expenses, as a percentage of average daily net assets, would be
1.91%, 2.66% and 2.66%, respectively, for Class A Shares, Class B
Shares and Class C Shares of Tax-Free New Jersey Fund, which
would include Management Fees of 0.54% for each Class, and 1.91%,
2.66% and 2.66%, respectively, for Class A Shares, Class B Shares
and Class C Shares of Tax-Free Ohio Fund, which would include
Management Fees of 0.54% for each Class.
++ Class A Shares, Class B Shares and Class C Shares are subject
to separate 12b-1 Plans. Long-term shareholders may pay more
than the economic equivalent of the maximum front-end sales
charges permitted by rules of the National Association of
Securities Dealers, Inc. (the "NASD").
The following example illustrates the expenses that an
investor would pay on a $1,000 investment over various time
periods, assuming (1) a 5% annual rate of return, (2) redemption
and no redemption at the end of each time period and (3) for
Class B Shares and Class C Shares, payment of a CDSC at the time
of redemption, if applicable. The following example assumes the
voluntary waiver of the management fee by the Manager as
discussed above.
Tax-Free New Jersey Fund
Assuming Redemption Assuming No Redemption
1 year 3 years 1 year 3 years
Class A Shares $42(1) $53 $42 $53
Class B Shares(2) $53 $70 $13 $40
Class C Shares $23 $40 $13 $40
Tax-Free Ohio Fund
Assuming Redemption Assuming No Redemption
1 year 3 years 1 year 3 years
Class A Shares $42(1) $53 $42 $53
Class B Shares(2) $53 $70 $13 $40
Class C Shares $23 $40 $13 $40
(1) Generally, no redemption charge is assessed upon redemption
of Class A Shares. Under certain circumstances, however, a
Limited CDSC or other CDSC, which has not been reflected in this
calculation, may be imposed on certain redemptions within 12
months of purchase. See Contingent Deferred Sales Charge for Certain
Redemptions of Class A Shares Purchased at Net Asset Value under
Redemption and Exchange in the Prospectus.
(2) At the end of approximately eight years after purchase,
Class B Shares will be automatically converted into Class A
Shares. The example above does not assume conversion of Class B
Shares since it reflects figures only for one and three years.
See Automatic Conversion of Class B Shares under Classes of Shares in
the Prospectus for a description of the automatic conversion
feature.
The following supplements the section of the Prospectus
entitled Management of the Funds:
The Manager elected voluntarily to waive that portion, if any,
of the annual management fees payable by Tax-Free New Jersey Fund
and Tax-Free Ohio Fund and to pay certain expenses of these Funds
to the extent necessary to ensure that the Total Operating
Expenses of each Class of the Funds, excluding each such Class'
12b-1 fees, did not exceed 0.75%, from the commencement of the
public offering of the Classes through January 21, 1998.
Beginning January 22, 1998, the Manager has elected voluntarily
to waive that portion, if any, of the annual management fees
payable by the Funds and to pay certain of the Funds' expenses to
the extent necessary to ensure that the Total Operating Expenses
of each Class of the Funds do not exceed 0.25% (excluding the
12b-1 plan expenses). This waiver and expense limitation will
extend through July 31, 1998.
