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(Logo of Freedom Group of Money Funds)
AN INTERVIEW WITH YOUR PORTFOLIO MANAGERS.
(Q.) WHAT HAS HAPPENED TO SHORT-TERM INTEREST RATES OVER THE PAST SIX MONTHS?
(A.) After raising the Federal Funds rate (the rate
banks charge each other for overnight loans) six
times throughout 1994, the Federal Reserve Bank
acted once again in February of this year. This
move, which left the Fed Funds level at 6%, doubled
the 3% of early last year, was the final step in a
tightening cycle aimed at slowing economic growth
before inflation accelerated.
By early Spring of 1995, the dampening effects of
higher rates began to appear. Signs of economic
slowing were evident in areas such as housing,
retail sales, and auto purchases. By most measures,
inflation remained well behaved, rising slightly but
at a tolerable pace. Interest rates began to turn
lower as it became increasingly evident that no
further hikes were needed. Speculation even turned
to thoughts of a lowering of the Fed Funds rate as
further signs of slower growth appeared. Short term
interest rates fell as the market anticipated that
the next move by the Fed would be toward an easing
in monetary policy to stimulate an economy that was
now growing too slowly. Indeed, in early July, the
Funds rate was cut by .25% and now stands at 5.75%.
(Q.)WHAT HAPPENED IN THE MUNICIPAL MARKET?
(A.) Yields in the municipal market generally follow
their taxable counterparts and for the most part
that occurred during the past year. The tax-exempt
sector, however, was much more volatile due to some
unique fundamental factors. The supply of tax-exempt
securities in 1995 has been even lower than in the
same period of last year. An increase in demand
fueled by the large amount of bond calls,
redemptions and maturities expected in July, coupled
with lower supply, has prevented tax-exempt interest
rates from rising quite as much as taxable rates.
Since April, there have been additional pressures on
the municipal market, particularly in the longer
maturities, in the form of tax reform proposals
coming from Congress. Most of these proposals
contain provisions that could have significant
effects on the tax-exempt markets. Since it appears
highly unlikely that any definitive action will be
taken until 1997 at the earliest, there has been
little effect from these proposals in the money
market sector.
(Q.) HOW DID YOU ADJUST THE AVERAGE MATURITIES OF THE MONEY FUNDS DURING THIS
TIME?
(A.) We began the year with the average maturities
of the money funds relatively short, in line with
our expectations that the Fed would still need to
raise rates. After the rate hike in February, we
continued to emphasize shorter maturities, believing
the Fed was still biased toward further tightening.
As evidence of slower growth accumulated during the
first half, it became apparent that the Fed was near
the end of its tightening cycle. We began to extend
maturities to enable us to lock in the higher rates
for a longer period of time. At this time, we
continue to tilt toward longer maturities while
closely monitoring the economic and inflation signs
that will influence the next Fed move.
(Q.)WHAT IS YOUR OUTLOOK FOR THE REST OF THE YEAR?
(A.) It is becoming increasingly evident that the
slowdown that occurred in the first half will not
result in a recession. In fact, recent data has
pointed to a pick-up in growth. The economic
indicators reflecting the health of the economy and
inflation over the coming months will be crucial in
determining the path the Fed will follow. As long as
inflation remains under control and growth picks up
only moderately, interest rates should continue to
trend slightly lower. We are expecting an additional
one or two moderate rate cuts in the near term to be
followed by a steady policy where rates will remain
stable for a time. We can not rule out a possible
reversal of policy (back to raising rtes) if
inflation rises or growth picks up at an unexpected
pace.
(Q.) COULD YOU REVIEW YOUR INVESTMENT POLICY?
(A.) Our investment policy is very conservative. All
of our investments carry the highest rating assigned
to short-term
(Halftone Photograph of Sarah Scranton, Portfolio Manager, Cash Management Fund)
(Halftone Photograph of Mary Jeanne Currie, Portfolio Manager, Government
Securities Fund) (Halftone Photograph of Paul Marandett, Portfolio Manager, Tax
Exempt Money Fund)
instruments by the major rating agencies. With
preservation of capital the primary objective of our
money funds, we are constantly monitoring and
evaluating the creditworthiness of our holdings to
ensure that this standard is maintained. This
conservative investment approach is also reflected
in the fact that both the Freedom Cash Management
Fund and the Freedom Tax Exempt Money Fund are rated
"AAA" by Standard & Poor's. The Freedom Government
Securities Fund is invested solely in US Treasury
bills and notes, with the added benefit that, for
most shareholders, the Fund's dividends are exempt
from state and local taxes.
Signature
Sarah H. Scranton, CFA
Portfolio Manager
Signature
Mary Jeanne Currie
Portfolio Manager
Signature
Paul Marandett
Portfolio Manager
FREEDOM CASH MANAGEMENT FUND
INVESTMENTS AS OF JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY
AMOUNT RATE DATE VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER -- 78.0%
ABN-AMRO NORTH AMERICA FINANCE INC.
$20,000,000 5.750% 10/02/1995 $ 19,702,917
ABBEY NATIONAL PLC
15,000,000 6.340% 09/05/1995 15,000,266
25,000,000 6.400% 05/29/1996 25,000,000
AMERICAN EXPRESS CREDIT CORP.
5,000,000 6.060% 07/11/1995 4,991,583
10,000,000 5.800% 07/26/1995 9,959,722
10,000,000 5.930% 09/06/1995 9,889,636
10,000,000 5.750% 09/27/1995 9,859,444
AMERICAN GENERAL FINANCE CORP.
10,000,000 5.940% 07/27/1995 9,957,100
10,000,000 5.940% 07/31/1995 9,950,500
5,000,000 5.880% 08/18/1995 4,960,800
10,000,000 5.920% 09/01/1995 9,898,044
10,000,000 5.770% 09/21/1995 9,868,572
AT&T CORP.
15,000,000 5.910% 08/01/1995 14,923,663
10,000,000 5.830% 09/13/1995 9,880,161
10,000,000 5.760% 09/25/1995 9,862,400
ASSET SECURITIZATION COOPERATIVE CORP.
15,000,000 5.970% 08/03/1995 14,917,913
10,500,000 5.800% 08/14/1995 10,425,567
10,000,000 5.930% 08/25/1995 9,909,403
10,000,000 5.830% 09/20/1995 9,868,825
ASSOCIATES CORP. OF NORTH AMERICA
10,000,000 5.900% 07/18/1995 9,972,139
10,000,000 5.950% 07/27/1995 9,957,028
10,000,000 5.920% 08/28/1995 9,904,622
10,000,000 5.920% 08/29/1995 9,902,978
10,000,000 5.820% 09/08/1995 9,888,450
BEAR STEARNS COMPANIES INC. (THE)
10,000,000 5.950% 08/11/1995 9,932,236
CANADIAN IMPERIAL HOLDINGS INC.
10,000,000 5.960% 07/07/1995 9,990,067
10,000,000 5.910% 08/08/1995 9,937,617
10,000,000 5.940% 08/10/1995 9,934,000
10,000,000 5.890% 08/24/1995 9,911,650
CARCO AUTO LOAN MASTER TRUST
50,000,000 6.135% 07/17/1995 50,000,000
CITIZENS UTILITIES CO.
15,000,000 5.920% 08/21/1995 14,874,200
COMMERZBANK U.S. FINANCE INC.
10,000,000 5.950% 07/17/1995 9,973,556
10,000,000 5.800% 09/13/1995 9,880,778
10,000,000 5.820% 09/29/1995 9,854,500
COOPERATIVE ASSOCIATION OF TRACTOR DEALERS INC.
1,500,000 6.180% 07/06/1995 1,498,713
11,000,000 5.900% 07/07/1995 10,989,183
2,900,000 6.180% 07/17/1995 2,892,035
3,600,000 6.050% 08/22/1995 3,568,540
3,500,000 5.950% 09/22/1995 3,451,987
4,500,000 5.800% 10/13/1995 4,424,600
CORPORATE ASSET FUNDING CO. INC.
15,000,000 5.970% 08/02/1995 14,920,400
5,500,000 5.800% 09/25/1995 5,423,794
15,000,000 5.750% 09/28/1995 14,786,771
DEVELOPMENT AUTHORITY OF DEKALB COUNTY,
GEORGIA UNIVERSITY REVENUE BONDS
(EMORY UNIVERSITY PROJECT)
8,500,000 6.070% 09/05/1995 8,500,000
DRESDNER U.S. FINANCE INC.
20,000,000 5.850% 09/05/1995 19,785,500
DUPONT (E.I.) DE NEMOURS & CO.
10,000,000 6.010% 07/14/1995 9,978,298
10,000,000 6.010% 07/18/1995 9,971,619
FORD CREDIT EUROPE PLC
5,000,000 6.090% 07/05/1995 4,996,617
16,500,000 6.040% 07/13/1995 16,366,981
10,000,000 6.030% 07/17/1995 9,973,200
2,000,000 5.960% 07/26/1995 1,493,792
10,000,000 5.810% 09/15/1995 9,877,344
FORD MOTOR CREDIT CO.
10,000,000 5.900% 07/19/1995 9,970,500
GENERAL ELECTRIC CAPITAL CORP.
10,000,000 6.090% 07/06/1995 9,991,542
10,000,000 6.040% 07/12/1995 9,981,544
10,000,000 6.020% 07/14/1995 9,978,261
10,000,000 5.950% 07/21/1995 9,966,944
10,000,000 5.780% 10/06/1995 9,844,261
GOLDEN PEANUT CO.
5,000,000 5.870% 09/06/1995 4,945,376
GOLDMAN SACHS & CO.
10,000,000 5.850% 08/09/1995 9,936,625
10,000,000 5.900% 09/07/1995 9,888,556
10,000,000 5.850% 09/12/1995 9,881,375
HANSON FINANCE (U.K.) PLC
10,000,000 6.050% 07/07/1995 9,989,917
10,000,000 6.050% 07/10/1995 9,984,875
10,000,000 5.980% 08/02/1995 9,946,844
10,000,000 5.900% 08/17/1995 9,922,972
10,000,000 5.880% 09/14/1995 9,877,500
J.P. MORGAN & CO. INC.
10,000,000 5.910% 07/10/1995 9,985,225
10,000,000 5.860% 09/25/1995 9,860,011
20,000,000 6.050% 10/31/1995 19,589,944
METLIFE FUNDING INC.
10,000,000 5.920% 07/25/1995 9,960,533
21,008,000 5.930% 08/07/1995 20,879,962
15,000,000 5.800% 09/28/1995 14,784,917
MINNESOTA MINING & MANUFACTURING CO.
10,000,000 5.900% 08/08/1995 9,937,722
MISSISSIPPI BUSINESS FINANCE CORP. TAXABLE
INDUSTRIAL DEVELOPMENT REVENUE BONDS
10,000,000 6.100% 07/05/1995 10,000,000
NATIONSBANK CORP.
10,000,000 6.010% 07/12/1995 9,981,636
10,000,000 6.010% 08/04/1995 9,943,239
10,000,000 5.940% 08/17/1995 9,922,450
NEW YORK (CITY OF) GENERAL OBLIGATION BONDS
14,000,000 6.180% 07/11/1995 14,000,000
18,000,000 6.080% 09/19/1995 18,000,000
PRUDENTIAL FUNDING CORP.
10,000,000 6.040% 07/05/1995 9,993,289
10,000,000 5.940% 08/09/1995 9,935,650
SHEFFIELD RECEIVABLES CORP.
10,000,000 5.970% 07/13/1995 9,980,100
USAA CAPITAL CORP.
15,000,000 5.880% 08/08/1995 14,906,900
10,000,000 5.900% 08/09/1995 14,904,125
10,000,000 5.740% 08/10/1995 9,936,222
WAL-MART STORES INC.
15,000,000 5.870% 08/22/1995 14,872,817
16,000,000 5.780% 09/11/1995 15,815,040
TOTAL COMMERCIAL PAPER 976,936,585
CERTIFICATES OF DEPOSIT -- 9.0%
ABN-AMRO BANK N.V.
15,000,000 6.240% 08/04/1995 15,000,555
BANQUE NATIONALE DE PARIS
13,000,000 6.170% 08/01/1995 13,002,417
CANADIAN IMPERIAL BANK OF COMMERCE
10,000,000 6.070% 08/15/1995 10,000,468
COMMERZBANK AG
5,000,000 5.920% 09/06/1995 4,999,988
10,000,000 5.900% 09/08/1995 10,000,568
NATIONAL WESTMINSTER BANK PLC
15,000,000 6.010% 07/19/1995 15,000,074
20,000,000 6.090% 07/28/1995 20,000,471
SOCIETE GENERALE
15,000,000 6.030% 08/11/1995 15,000,337
10,000,000 6.340% 08/31/1995 9,999,836
TOTAL CERTIFICATES OF DEPOSIT 113,004,714
BANK NOTES -- 4.0%
HARRIS TRUST & SAVINGS BANK
10,000,000 6.020% 08/15/1995 10,000,000
10,000,000 6.020% 08/16/1995 10,000,000
STATE STREET BANK & TRUST CO.
10,000,000 6.110% 07/20/1995 10,000,000
10,000,000 6.105% 07/24/1995 10,000,000
10,000,000 6.147% 08/23/1995 10,000,000
TOTAL BANK NOTES 50,000,000
BANKERS ACCEPTANCES -- 0.4%
SOCIETE GENERALE
5,000,000 5.870% 08/21/1995 4,958,420
TOTAL BANKERS ACCEPTANCES 4,958,420
DESCRIPTION
REPURCHASE AGREEMENTS -- 7.5%
94,457,000 Bankers Trust Co. 6.00%
dated 6/30/95, due 7/01/95
(Collateralized by U.S.
Treasury Notes valued at
$96,347,212. Repurchase
proceeds of $94,504,228.) 94,457,000
TOTAL INVESTMENTS -- 98.9% 1,239,356,719(a)
Other Assets & Liabilities, Net -- 1.1% 13,005,588
$1,252,362,307
TOTAL NET ASSETS -- 100.0%
</TABLE>
(a) Cost for tax purposes is the same.
See Notes to Financial Statements.
FREEDOM GOVERNMENT SECURITIES FUND
INVESTMENTS AS OF JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY
AMOUNT RATE DATE VALUE
<S> <C> <C> <C>
U.S. GOVERNMENT ISSUES -- 99.2%
U.S TREASURY BILLS -- 99.2%
$ 370,000 5.565% 07/06/1995 $ 369,714
10,000,000 5.615% 07/06/1995 9,992,201
5,800,000 5.600% 07/13/1995 5,789,173
425,000 5.600% 07/20/1995 423,744
1,685,000 5.615% 07/20/1995 1,680,007
1,300,000 5.620% 07/20/1995 1,296,144
1,000,000 5.630% 07/20/1995 997,029
1,120,000 5.650% 07/27/1995 1,115,430
7,400,000 5.670% 07/27/1995 7,369,697
4,825,000 5.680% 07/27/1995 4,805,207
3,325,000 5.685% 07/27/1995 3,311,348
15,000,000 5.630% 08/03/1995 14,922,588
10,000,000 5.640% 08/03/1995 9,948,300
10,000,000 5.660% 08/03/1995 9,948,117
110,000 5.380% 08/10/1995 109,342
14,990,000 5.640% 08/10/1995 14,896,063
6,300,000 5.660% 08/10/1995 6,260,380
14,900,000 5.315% 08/17/1995 14,796,608
10,000,000 5.600% 08/17/1995 9,926,889
9,000,000 5.605% 08/17/1995 8,934,141
10,000,000 5.675% 08/17/1995 9,925,910
4,100,000 5.685% 08/17/1995 4,069,569
20,000,000 5.315% 08/24/1995 19,840,550
10,160,000 5.610% 08/24/1995 10,074,504
13,770,000 5.645% 08/24/1995 13,653,403
2,575,000 5.670% 08/24/1995 2,553,100
5,150,000 5.675% 08/24/1995 5,106,161
2,100,000 5.690% 08/24/1995 2,082,077
2,750,000 5.300% 08/31/1995 2,725,303
80,000 5.530% 08/31/1995 79,250
10,000,000 5.615% 08/31/1995 9,904,857
2,125,000 5.640% 08/31/1995 2,104,692
175,000 5.685% 08/31/1995 173,314
2,650,000 5.420% 09/07/1995 2,622,870
900,000 5.580% 09/07/1995 890,514
12,950,000 5.585% 09/07/1995 12,813,385
10,000,000 5.590% 09/07/1995 9,894,411
6,275,000 5.455% 09/14/1995 6,203,687
715,000 5.460% 09/14/1995 706,867
340,000 5.490% 09/14/1995 336,111
2,500,000 5.375% 09/21/1995 2,469,392
15,000,000 5.380% 09/21/1995 14,816,183
9,450,000 5.385% 09/21/1995 9,334,088
200,000 5.420% 09/21/1995 197,531
2,000,000 5.470% 09/21/1995 1,975,081
5,200,000 5.405% 10/05/1995 5,125,050
19,600,000 5.450% 10/05/1995 19,315,147
TOTAL U.S. GOVERNMENT ISSUES -- 99.2% 295,885,129(a)
Other Assets & Liabilities, Net -- 0.8% 2,315,242
TOTAL NET ASSETS -- 100.0% $298,200,371
</TABLE>
(a) Cost for tax purposes is the same.
See Notes to Financial Statements.
FREEDOM TAX EXEMPT MONEY FUND
INVESTMENTS AS OF JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION VALUE
<S> <C> <C>
MUNICIPAL BONDS -- 100.3%
ALABAMA -- 2.3%
$ 2,000,000 Alabama HFA (Heatherbrook) Series 0 (Am-
South LOC) 4.25% 7-05-95 $ 2,000,000
4,000,000 Alabama HFA Series 92A (AmSouth LOC)
4.20% 7-05-95 4,000,000
6,000,000
ARIZONA -- 10.6%
13,000,000 Apache County IDA (Tucson Electric & Gas)
(Barclays Bank LOC) 3.95% 7-05-94 13,000,000
1,000,000 Maricopa County PCR
(Arizona Public Services) Series 85B
(Bank of America LOC) 4.25% 7-03-95 1,000,000
2,500,000 Mesa Municipal Development Corp. Series
85 (United Bank of Switzerland LOC)
3.25% 8-22-95 2,500,000
Pima County IDA (Tucson Electric Power
Co.)
(Barclays Bank LOC)
2,100,000 Series 82A 3.95% 7-05-95 2,100,000
9,100,000 Series 83A 3.95% 7-05-95 9,100,000
27,700,000
ARKANSAS -- 3.0%
7,900,000 Arkansas Development Finance Authority
(FGIC Insured) 4.00% 7-06-95 7,900,000
CALIFORNIA -- 2.4%
1,000,000 Los Angeles County Metropolitan Transit
Authority RANS (Swiss Bank LOC) 5.00%
4-25-96 1,006,029
2,010,000 M-S-R Public Power Agency 9.25% 7-03-95 2,050,200
2,315,000 South Orange County Series 94C (FGIC In-
sured) 4.50% 8-15-95 2,316,346
1,000,000 Stockton Unified School District TANS
5.25% 12-08-95 1,002,350
6,374,925
COLORADO -- 1.3%
2,000,000 Arapahoe County Highway Series M (Swiss
Bank LOC) 4.40% 8-31-95 2,000,000
1,180,000 Colorado Student Loan 4.15% 7-05-95 1,180,000
285,000 Clear Creek County
(National Westminster LOC) 4.25% 7-05-
95 285,000
3,465,000
CONNECTICUT -- 3.9%
2,000,000 Connecticut (C.U.R.B.)
Series 93C (FGIC-SPI Insured) 3.90%
7-01-96 2,000,000
8,200,000 Connecticut GO Series B 3.95% 7-05-95 8,200,000
10,200,000
FLORIDA -- 7.1%
3,200,000 Dade County Aviation Facilities Series
84A (Fuji Bank LOC) 4.25% 7-05-95 3,200,000
4,500,000 Dade County Industrial Development Au-
thority (Florida Power & Light) 4.20%
7-03-95 4,500,000
1,000,000 Florida Housing Authority Series TT (Cit-
ibank LOC) 4.35% 7-05-95 1,000,000
2,515,000 Orange County HFA (Mayflower Project) Se-
ries 88 (Banque Paribas LOC) 4.10%
7-06-95 2,515,000
1,000,000 Orlando Utilities Commission 7.00% 10-01-
95 1,006,093
1,000,000 Putnam County PCR (Seminole Electric)
3.40% 12-15-95 1,000,000
3,000,000 Sunshine State Government Finance Commit-
tee 4.10% 8-01-95 3,000,000
2,300,000 West Orange Memorial Hospital Tax Dis-
trict (Rabobank LOC) 4.00% 7-11-95 2,300,000
18,521,093
GEORGIA -- 3.3%
Burke County Development Authority PCR
Bonds (Oglethorpe Power Corp.)
3,000,000 (Credit Suisse LOC) 4.15% 7-17-95 3,000,000
1,100,000 (FGIC Insured) 4.15% 7-05-95 1,100,000
3,000,000 Fulton County TANS 4.75% 12-29-95 3,008,609
1,500,000 Hapeville Development Authority IDA
(Swiss Bank LOC) 4.35% 7-03-95 1,500,000
8,608,609
HAWAII -- 2.4%
Hawaii State Housing Finance and Develop-
ment Revenue (Industrial Bank of Japan
LOC)
3,800,000 90A 4.25% 7-05-95 3,800,000
2,400,000 90B 4.25% 7-05-95 2,400,000
6,200,000
ILLINOIS -- 6.8%
1,800,000 Chicago GO Tender Notes Series 95A 4.60%
11-01-95 1,800,000
2,000,000 Chicago (United Bank of Switzerland LOC)
4.15% 7-19-95 2,000,000
2,200,000 Illinois Development Finance Authority
VRDN (A.E. Staley Co.) Series 85
(United Bank of Switzerland LOC) 4.15%
7-05-95 2,200,000
1,000,000 Illinois Development Finance Authority
VRDN (Cobbler Square) (Sumitomo LOC)
4.35% 7-05-95 1,000,000
1,000,000 Illinois Development Finance Authority
VRDN (Lake Forest Academy) (Northern
Trust LOC) 4.15% 7-05-95 1,000,000
4,600,000 Illinois Development Finance Authority
(Marriot Corp.) (National Westminster
LOC) 4.25% 7-05-95 4,600,000
1,400,000 Illinois Development Finance Authority CP
(Canadian Imperial Bank of Commerce
LOC) 4.15% 7-25-95 1,400,000
3,700,000 Lisle HFA (Ashley of Lisle Project)
(Credit Suisse LOC) 4.15% 7-05-95 3,700,000
17,700,000
INDIANA -- 5.2%
1,300,000 Indiana HFA Series 94D (FGIC Insured)
4.30% 7-03-95 1,300,000
1,365,000 Indiana HFA Series D (FGIC Insured) 3.90%
7-01-96 1,365,000
1,500,000 Indianapolis MFHA (Canal Square) (Societe
Generale LOC) 4.00% 7-05-95 1,500,000
2,500,000 Jasper County (Northern Indiana Public
Services) (United Bank of Switzerland
LOC) 4.20% 7-03-95 2,500,000
5,000,000 Mt. Vernon PCR (General Electric) 4.10%
8-08-95 5,000,000
2,000,000 Sullivan (Hoosier Energy Electric Cooper-
ative Inc.) (National Rural Utilities
Corp.) 3.85% 8-08-95 2,000,000
13,665,000
IOWA -- 1.3%
Iowa School Corporation (Capital Guaranty
Insured)
2,385,000 Series 95/96A 4.75% 6-28-96 2,405,485
1,000,000 Series 94A 4.25% 7-17-95 1,000,274
3,405,759
KANSAS -- 2.4%
3,000,000 Kansas City IDR (PQ Corp.) (Credit Suisse
LOC) 4.35% 7-03-95 3,000,000
2,000,000 Mission (Woodland Village Project) (Cit-
ibank LOC) 4.00% 7-05-95 2,000,000
1,400,000 City of Wichita VRDN (CSJ Health Care
System) Series 85 (Sumitomo LOC) 4.25%
7-05-95 1,400,000
6,400,000
LOUISIANA -- 4.7%
1,500,000 Ascension Parish (Borden Project) (Credit
Suisse LOC) 4.10% 7-05-95 1,500,000
400,000 East Baton Rouge IDB (Georgia Pacific)
(Toronto Dominion LOC) 3.95% 7-06-95 400,000
3,000,000 New Orleans Aviation Board (MBIA Insured)
4.05% 7-05-95 3,000,000
2,500,000 Plaquemines Port Harbor & Terminal (Tampa
Electric Co. Finance Corp.) Series B
4.00% 7-10-95 2,500,000
West Baton Rouge (Dow Chemical)
1,800,000 4.25% 7-03-95 1,800,000
1,100,000 4.20% 7-25-95 1,100,000
2,000,000 West Feliciana PCR (Gulf States Utili-
ties) (Canadian Imperial Bank of Com-
merce LOC) 4.20% 7-03-95 2,000,000
12,300,000
MICHIGAN -- 1.9%
1,000,000 Ingham Economic Development Corp. (Na-
tional Australia Bank LOC) 4.05% 7-05-
95 1,000,000
1,400,000 Michigan Housing Development Authority
Series 94C 4.05% 7-05-95 1,400,000
1,500,000 Michigan Strategic Fund (Consumer Power)
Series 88A (United Bank of Switzerland
LOC) 4.25% 7-03-95 1,500,000
1,000,000 Michigan Strategic Fund (Dow Chemical)
3.85% 8-09-95 1,000,000
4,900,000
MINNESOTA -- 2.0%
1,000,000 Coon Rapids (Health Central System) (Nor-
west LOC) 4.25% 7-05-95 1,000,000
1,300,000 Duluth (Lake Superior Paper Industries)
(National Australia Bank LOC) 4.05%
7-06-95 1,300,000
1,000,000 Southern Minnesota Municipal Power Agency
6.75% 1-01-96 1,034,091
2,000,000 University of Minnesota 4.50% 8-01-95 2,000,000
5,334,091
MISSISSIPPI -- 1.8%
Claiborne CP (Southern Mississippi Elec-
tric
Power Assoc.)
2,600,000 4.10% 7-05-95 2,600,000
2,000,000 3.15% 8-07-95 2,000,000
4,600,000
MISSOURI -- 3.0%
1,800,000 Columbia (Insurance Reserve Bonds) (Tor-
onto Dominion LOC) 4.25% 7-05-95 1,800,000
5,000,000 Kansas City IDA (Willow Creek Housing
Project) (Citibank LOC) 4.00% 7-05-95 5,000,000
1,000,000 Missouri HEFA Series F (Kansas City S.D.)
4.50% 9-19-95 1,000,628
7,800,628
MONTANA -- 0.5%
1,200,000 Forsyth PCR (Port. Gen. Elec.) Series D
(Swiss Bank LOC) 4.05% 7-05-95 1,200,000
NEVADA -- 0.8%
2,000,000 Clark County Airport Revenue Series 95A
(Toronto Dominion LOC) 4.15% 7-05-95 2,000,000
NEW HAMPSHIRE -- 0.8%
2,100,000 New Hampshire Business Finance Authority
(CT Light & Power) Series 92A (Canadian
Imperial Bank of Commerce LOC) 4.15%
7-05-95 2,100,000
NEW JERSEY -- 0.5%
1,300,000 New Jersey Turnpike Authority (Societe
Generale LOC) 3.85% 7-05-95 1,300,000
NEW MEXICO -- 0.6%
1,500,000 Albuquerque Hospital Revenue Bonds (St.
Joseph Health Care) (Canadian Imperial
Bank of Commerce LOC) 4.20% 7-05-95 1,500,000
NEW YORK -- 2.4%
1,000,000 Erie County TRANS (United Bank of Swit-
zerland LOC) 4.75% 8-15-95 1,000,888
2,900,000 New York City Series 95B4 (MBIA Insured)
4.25% 7-03-95 2,900,000
2,400,000 New York City Water Finance Agency Series
92C (FGIC-SPI Insured) 4.25% 7-03-95 2,400,000
6,300,888
NORTH CAROLINA -- 2.4%
3,000,000 North Carolina Educational Facilities
VRDN (Bowman Gray Medical School)
(Wachovia Bank LOC) 4.00% 7-06-95 3,000,000
3,200,000 Wake County PCFA (Carolina Power & Light
Co.) Series C (Sumitomo Bank LOC) 4.10%
7-05-95 3,200,000
6,200,000
NORTH DAKOTA -- 0.4%
1,000,000 Oliver County PCR (Minnesota Power &
Light) 4.30% 9-01-95 1,000,000
OHIO -- 1.1%
3,000,000 Ohio State Environmental Improvement Rev-
enue Bonds (USX Corp.) (Sanwa Bank LOC)
4.30% 7-05-95 3,000,000
OREGON -- 1.4%
1,600,000 Clackamas County Hospital Facilities Au-
thority (Kaiser Permanente Health
System) 4.20% 10-01-95 1,600,000
2,000,000 Klamath Falls Electric Revenue Bonds
4.40% 5-01-96 2,000,000
3,600,000
PENNSYLVANIA -- 1.3%
Delaware County IDA Solid Waste Revenue
Bonds (Scott Paper Co.)
300,000 Series 84B (Fuji Bank LOC) 4.20% 7-05-
95 300,000
3,000,000 Series 84D (National Westminster Bank
LOC) 2.25% 7-05-95 3,000,000
3,300,000
SOUTH CAROLINA -- 1.9%
3,000,000 York County (North Carolina Electric)
(NRUCFC) 4.30% 9-15-95 3,000,000
2,000,000 York County (Saluda River Project)
(NRUCFC) Series E1 4.55% 8-15-95 2,000,000
5,000,000
TENNESSEE -- 4.3%
2,000,000 Franklin Industrial Development Board
(Landing Project) (Citibank LOC) 4.00%
7-05-95 2,000,000
1,800,000 Industrial Development Authority of Met-
ropolitan Nashville-Davidson- County
IDR (Credit Suisse LOC) 4.10% 7-15-95 1,800,000
1,400,000 Knox County Industrial Development Board
(Melrose Assoc.) (Credit Suisse LOC)
4.10% 7-15-95 1,400,000
1,000,000 Metropolitan Government of Nashville &
Davidson County (Vanderbuilt
University) 5.10% 1-15-96 1,000,000
Tennessee BANS
2,000,000 Series 95A 4.00% 7-05-95 2,000,000
3,000,000 Series B 4.00% 7-05-95 3,000,000
11,200,000
TEXAS -- 4.9%
4,130,000 Brazos River Authority IDA (Monsanto Co.
Project) 4.15% 7-05-95 4,130,000
1,900,000 Grapevine IDR VRDN (American Airlines)
4.35% 7-03-95 1,900,000
1,000,000 Houston TRANS 4.50% 6-27-96 1,008,030
1,330,000 Hunt County Industrial Development (Trico
Industries) (ABN Amro LOC) 4.50% 7-05-
95 1,330,000
3,000,000 Mansfield Industrial Development (Pier 1
Imports) (National Westminster LOC)
4.10% 7-05-95 3,000,000
1,500,000 Port Development Corp. of Texas VRDN
(Credit Suisse LOC) 4.15% 7-05-95 1,500,000
12,868,030
UTAH -- 5.1%
Intermountain Power Agency
1,000,000 8.80% 7-01-95 1,020,000
1,000,000 9.00% 7-01-95 1,020,000
7,700,000 State Board of Regents Student Loan Reve-
nue Series 88B (AMBAC Insured) 4.00%
7-05-95 7,700,000
400,000 Utah HFA Series 93C 4.20% 7-05-95 400,000
3,300,000 Utah HFA Series 93D 4.20% 7-05-95 3,300,000
13,440,000
VERMONT -- 0.7%
1,800,000 Vermont Education & Building Finance
Agency (Middlebury College)
4.15% 11-01-95 1,800,000
VIRGINIA -- 1.4%
1,600,000 Fairfax County IDA (Fairfax Hospital Sys-
tem) (Dai Ichi Kangyo LOC) 4.15% 7-05-
95 1,600,000
2,000,000 Harrisonburg Virginia Redevelopment and
Housing Revenue Bonds (Misty Ridge
Project) (Banc One LOC) 4.15% 7-06-95 2,000,000
3,600,000
WEST VIRGINIA -- 0.4%
1,000,000 West Virginia School Building Authority
(MBIA Insured) 5.00% 7-01-95 1,000,000
WYOMING -- 4.0%
1,400,000 Lincoln County PCR Refunding Bonds (Exxon
Project) 4.25% 7-03-95 1,400,000
1,000,000 Platte County PCR Series 84A (Societe
Generale LOC) 4.35% 7-03-95 1,000,000
4,800,000 Sweetwater PCR VRDN (Pacificorp) (Credit
Suisse LOC) 3.95% 7-05-95 4,800,000
1,400,000 Sweetwater PCR (Pacificorp) (UBS LOC)
3.60% 8-04-95 1,400,000
2,000,000 Sweetwater PCR (UBS LOC) 3.90% 7-07-95 2,000,000
10,600,000
TOTAL INVESTMENTS -- 100.3% 262,084,023(A)
Other Assets & Liabilities, Net -- (0.3)% (905,105)
TOTAL NET ASSETS -- 100.0% 261,178,918
</TABLE>
Legend:
BANS--Bond Anticipation Notes
CP--Commercial Paper
GO--General Obligation
HEFA--Health and Education Facilities Authority
HFA--Housing Finance Authority
IDA--Industrial Development Authority
IDB--Industrial Development Board
IDR--Industrial Development Revenue
LOC--Letter of Credit
MFHA--Multi-Family Housing Authority
NRUCFC--National Rural Utilities Cooperative
Finance Commission
PCFA--Pollution Control Finance Authority
PCR--Pollution Control Revenue
TANS--Tax Anticipation Notes
TRANS--Tax & Revenue Anticipation Notes
VRDN--Variable Rate Demand Note
Insurance Abbreviations:
AMBAC--AMBAC Indemnity Corp.
FGIC--Federal Guaranty Insurance Corporation
MBIA--Municipal Bond Investors Assurance
FGIC--SPI--Federal Guaranty Insurance Corporation--
Securities Purchased Inc.
Maturity dates for many bonds and notes represent the next scheduled date
at which the interest rate may be adjusted or a "demand" or "put" feature
may be exercised.
(a) Cost for tax purposes is the same.
See Notes to Financial Statements.
FREEDOM GROUP OF MONEY FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
FREEDOM FREEDOM FREEDOM
CASH GOVERNMENT TAX EXEMPT
MANAGEMENT SECURITIES MONEY
FUND FUND FUND
<S> <C> <C> <C>
ASSETS
Investments, at amortized cost $1,239,356,719 $295,885,129 $262,084,023
Cash 768,679 107,993 1,049,272
Receivable for Fund shares sold 13,881,169 3,010,594 1,538,559
Interest receivable 2,534,484 -- 1,580,593
Prepaid expenses 23,200 5,947 6,499
Other assets 65,869 26,570 28,841
1,256,630,120 299,036,233 266,287,787
LIABILITIES
Payable for Investments purchased -- -- 4,373,956
Payable for Fund shares redeemed 800,729 93,115 216,656
Dividends payable 2,671,740 580,455 372,733
Accrued expenses:
Investment adviser's fee 471,020 115,335 110,249
Shareholder servicing fee 303,394 30,318 32,224
Trustees' fee 11,790 1,812 3,051
Other 9,140 14,827 --
4,267,813 835,862 5,108,869
NET ASSETS $1,252,362,307 $298,200,371 $261,178,918
NET ASSETS CONSIST OF:
Capital paid in $1,252,509,672 $298,190,762 $261,171,158
Accumulated net realized gain (loss) (147,365) 9,609 7,760
$1,252,362,307 $298,200,371 $261,178,918
SHARES ISSUED AND OUTSTANDING (UNLIMITED SHARES
AUTHORIZED) 1,252,509,672 298,190,762 261,171,158
NET ASSET VALUE PER SHARE $ 1.00 $ 1.00 $ 1.00
</TABLE>
See Notes to Financial Statements.
FREEDOM GROUP OF MONEY FUNDS
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
FREEDOM FREEDOM FREEDOM
CASH GOVERNMENT TAX EXEMPT
MANAGEMENT SECURITIES MONEY
FUND FUND FUND
<S> <C> <C> <C>
INTEREST INCOME $34,797,848 $7,458,760 $5,098,199
EXPENSES
Investment adviser's fee 2,679,600 647,110 654,495
Transfer agent and shareholder services 1,171,780 115,035 104,840
Custodian 111,395 20,172 3,970
Compensation of Trustees 24,655 7,380 9,050
Audit 16,470 10,620 10,195
Legal 29,260 6,195 6,990
Printing, postage and stationery 83,270 14,665 14,155
Membership dues 26,390 6,768 7,390
Registration expense 25,340 18,100 19,945
Insurance expense 32,254 8,174 9,155
Other 2,135 904 1,519
4,202,549 855,123 841,704
INVESTMENT INCOME -- NET 30,595,299 6,603,637 4,256,495
REALIZED GAIN(LOSS) ON INVESTMENTS -- NET -- 11,586 --
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $30,595,299 $6,615,223 $4,256,495
</TABLE>
See Notes to Financial Statements.
FREEDOM GROUP OF MONEY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FREEDOM FREEDOM FREEDOM
CASH MANAGEMENT FUND GOVERNMENT SECURITIES FUND TAX EXEMPT MONEY FUND
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1995* 1994 JUNE 30, 1995* 1994 JUNE 30, 1995* 1994
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 30,595,299 $ 39,357,687 $ 6,603,637 $ 9,232,714 $ 4,256,495 $ 6,041,672
Net realized gain
(loss) from security
transactions -- 312 11,586 (35,617) -- 463
Net increase re-
sulting from op-
erations 30,595,299 39,357,999 6,615,223 9,197,097 4,256,495 6,042,135
Dividends to share-
holders (30,595,299) (39,357,687) (6,603,637) (9,232,714) (4,256,495) (6,041,672)
-- 312 11,586 (35,617) -- 463
FROM CAPITAL TRANSAC-
TIONS:
(At Net Asset Value of
$1 per share)
Proceeds from sale of
shares 2,181,312,190 3,645,672,303 633,122,601 1,043,326,877 510,379,022 1,051,627,434
Net asset value of
shares issued to
shareholders in rein-
vestment of dividends 27,146,719 37,467,219 5,757,560 8,671,139 3,662,568 5,553,668
Cost of shares re-
deemed (2,039,757,698) (3,738,056,248) (609,125,255) (1,133,336,914) (500,907,985) (1,079,609,948)
Increase (decrease)
in net assets de-
rived from capi-
tal share trans-
actions 168,701,211 (54,916,726) 29,754,906 (81,338,898) 13,133,605 (22,428,846)
Net increase (de-
crease) in net assets 168,701,211 (54,916,414) 29,766,492 (81,374,515) 13,133,605 (22,428,383)
NET ASSETS:
Beginning of period 1,083,661,096 1,138,577,510 268,433,879 349,808,394 248,045,313 270,473,696
End of period $ 1,252,362,307 $ 1,083,661,096 $ 298,200,371 $ 268,433,879 $ 261,178,918 $ 248,045,313
DIVIDENDS TO SHAREHOLDERS
PER SHARE $ 0.0267 $ 0.0353 $ 0.0253 $ 0.0331 $ 0.0161 $ 0.0216
</TABLE>
* Unaudited
See Notes to Financial Statements.
FREEDOM MUTUAL FUND
FREEDOM GROUP OF TAX EXEMPT MONEY FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1. ACCOUNTING POLICIES. The Freedom Mutual Fund and the Freedom
Group of Tax Exempt Funds (the "Trusts") are Massachusetts business trusts
registered under the Investment Company Act of 1940, as amended, as open-
end management companies. The Agreements and Declarations of Trust permit
the issuance of an unlimited number of shares of beneficial interest in
separate series, with shares of each series representing interests in a
separate portfolio of assets and operating as a separate distinct fund (a
"Fund"). The Freedom Mutual Fund consists of the Freedom Cash Management
Fund and the Freedom Government Securities Fund. The Freedom Group of Tax
Exempt Funds consists of the Freedom Tax Exempt Money Fund and the Freedom
California Tax Exempt Money Fund. The financial statements of the Freedom
California Tax Exempt Money Fund are included in a separate annual report
for that Fund.
The following is a summary of significant accounting policies followed by
the Trusts in the preparation of their financial statements. The policies
are in conformity with generally accepted accounting principles.
Security Valuation and Transactions. Each Trust values its portfolio se-
curities utilizing the amortized cost valuation method. This method in-
volves valuing a portfolio security at its cost and thereafter assuming a
constant amortization to maturity of any discount or premium. Cost is de-
termined and gains and losses are based upon the specific identification
method for both financial statement and federal income tax purposes. In-
vestment securities transactions are accounted for on the date the securi-
ties are purchased or sold.
Expenses. The majority of the expenses of each Trust are directly identi-
fiable to an individual Fund. Expenses which are not readily identifiable
as belonging to a specific Fund are allocated in such manner as deemed eq-
uitable by the Trustees, taking into consideration, among other things,
the nature and type of expense and the relative sizes of the Funds.
Trustees' fees of $6,000 per Trust, per year, plus $250 per meeting of the
Board of Trustees and $350 per meeting of any committee thereof, are paid
to each Trustee who is not an interested person of the Trusts. No remuner-
ation is paid by either Trust to any Trustee or officer of that Trust who
is affiliated with Freedom Capital Management Corporation, the Trusts' ad-
viser.
The Trusts have entered into an insurance agreement with ICI Mutual Insur-
ance Company, under which each Trust pays both an annual insurance premium
and a one-time reserve premium, and is committed to provide additional
funds of up to 300% of its initial annual premium if and when called upon.
Federal Income Tax. It is each Fund's policy to comply with the provi-
sions of the Internal Revenue Code applicable to regulated investment com-
panies and to distribute all of its income to its shareholders. It is also
the intention of the Funds to make sufficient distributions to sharehold-
ers to avoid imposition of excise tax on undistributed amounts under the
Internal Revenue Code. Therefore, no federal income or excise tax provi-
sion is required.
Interest Income and Dividends to Shareholders. Interest income is accrued
as earned. Dividends to shareholders are declared daily from net invest-
ment income, which consists of interest accrued or discount earned (in-
cluding original issue and market discount) less amortization of premium
and the estimated expenses of the Fund applicable to the dividend period.
Other. Investment security transactions are accounted for on the date the
securities are purchased or sold. The custodian takes possession through
the federal book-entry system of securities collateralizing repurchase
agreements. Collateral is marked-to-market daily to ensure that the market
value of the underlying assets remains sufficient to protect the Funds in
the event of default by the seller. In connection with transactions in re-
purchase agreements, if the seller defaults and the collateral declines,
or if the seller enters an insolvency proceeding, realization of the col-
lateral by the Funds may be limited or delayed.
The Funds may purchase or sell securities on a when-issued basis. Payment
and delivery may take place more than a week after the date of the trans-
action. The price that will be paid for the underlying securities is fixed
at the time the transaction is negotiated.
NOTE 2. INVESTMENT ADVISOR AND OTHER RELATED PARTY TRANSACTIONS. Freedom
Capital Management Corporation ("FCMC") is the investment advisor of the
Funds and also furnishes the Funds with administration and other services
and office facilities in Boston. For these services and facilities, each
Fund pays a monthly fee, computed separately for each Fund, based upon the
average daily net asset value of each Fund, at the annual rate of one half
of one percent (.50%) on the first $500 million of average daily net as-
sets and forty-five hundreths of one percent (.45%) for average daily net
assets in excess of that amount. The Funds themselves pay no salaries or
compensation to any of their officers.
The Funds' Advisory Agreements provide that if, in any fiscal year, the
total expenses of any Fund (excluding taxes, interest, brokerage commis-
sions and extraordinary items, but including the management fee) exceed
the expense limitations applicable to that Fund imposed by the securities
regulations of any state in which it is registered to sell shares, FCMC
will pay or reimburse that Fund for that excess up to the amount of its
management fee during that fiscal year. Although there is no certainty
that these limitations will be in effect in the future, the most restric-
tive limitation on an annual basis currently applicable to the Funds is
2.5% of the first $30 million of average daily net assets, 2.0% of the
next $70 million and 1.5% of average daily net assets over $100 million.
Tucker Anthony Incorporated ("Tucker Anthony") and Freedom Distributors
Corporation act as distributors of the Trusts' shares and receive no com-
pensation for such services. John Hancock Clearing Corporation, an affili-
ate of Tucker Anthony, received reimbursements from the Funds for main-
taining and servicing certain shareholder accounts for the six months
ended June 30, 1995 as follows:
<TABLE>
<CAPTION>
CASH GOVERNMENT TAX
MANAGEMENT SECURITIES EXEMPT MONEY
FUND FUND FUND
<S> <C> <C>
$474,625 $47,160 $41,630
</TABLE>
John Hancock Investor Services Corporation ("JHIS") (formerly John Hancock
Services, Inc.), a wholly-owned subsidiary of the Berkeley Financial
Group, an affiliate of FCMC, is transfer agent for the Funds. JHIS re-
ceived the following from the Funds for the six months ended June 30,
1995:
<TABLE>
<CAPTION>
CASH GOVERNMENT TAX
MANAGEMENT SECURITIES EXEMPT MONEY
FUND FUND FUND
<S> <C> <C>
$697,155 $67,875 $63,210
</TABLE>
NOTE 3. Purchases and sales (including maturities) of investments (ex-
cluding repurchase agreements) for the six months ended June 30, 1995 were
as follows:
<TABLE>
<CAPTION>
CASH GOVERNMENT TAX
MANAGEMENT SECURITIES EXEMPT MONEY
FUND FUND FUND
<S> <C> <C> <C>
Purchases
U.S. Government $ 44,507,447 $720,324,318 --
Other $3,298,381,027 -- $330,083,884
Sales
U.S. Government $ 115,000,000 $691,920,942 --
Other $3,152,322,000 -- $312,217,000
</TABLE>
"OUR FINANCIAL HIGHLIGHTS"
The table of FINANCIAL HIGHLIGHTS below represents a summary history of
our operations. The table expresses the information in terms of a single
share outstanding throughout each period.
<TABLE>
<CAPTION>
RATIO OF NET
NET ASSET DIVIDENDS RATIO OF INVESTMENT
VALUE FROM NET ASSET NET ASSETS EXPENSES INCOME
BEGINNING NET NET VALUE END TO AVERAGE TO AVERAGE
OF INVESTMENT INVESTMENT END OF TOTAL OF PERIOD DAILY DAILY
PERIOD ENDED PERIOD INCOME INCOME PERIOD RETURN (THOUSANDS) NET ASSETS NET ASSETS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CASH MANAGEMENT FUND
June 30, 1995++ $1.00 $0.0267 $(0.0267) $1.00 2.72% $1,252,362 0.74%+ 5.39%+
December 31, 1994 1.00 0.0353 (0.0353) 1.00 3.59% 1,083,661 0.75% 3.54%
December 31, 1993 1.00 0.0247 (0.0247) 1.00 2.50% 1,138,578 0.75% 2.47%
December 31, 1992 1.00 0.0309 (0.0309) 1.00 3.13% 1,069,472 0.78% 3.09%
December 31, 1991 1.00 0.0546 (0.0546) 1.00 5.60% 1,183,684 0.77% 5.46%
December 31, 1990 1.00 0.0753 (0.0753) 1.00 7.80% 1,103,050 0.78% 7.49%
December 31, 1989 1.00 0.0844 (0.0844) 1.00 8.78% 1,111,954 0.80% 8.45%
December 31, 1988 1.00 0.0679 (0.0679) 1.00 7.01% 800,970 0.85% 6.81%
December 31, 1987 1.00 0.0588 (0.0588) 1.00 6.04% 691,151 0.84% 5.88%
December 31, 1986 1.00 0.0602 (0.0602) 1.00 6.19% 700,841 0.85% 5.93%
December 31, 1985 1.00 0.0740 (0.0740) 1.00 7.66% 489,849 0.84% 7.40%
GOVERNMENT SECURITIES
FUND
June 30, 1995++ $1.00 $0.0253 $(0.0253) $1.00 2.58% $ 298,200 0.66%+ 5.10%+
December 31, 1994 1.00 0.0331 (0.0331) 1.00 3.36% 268,434 0.65% 3.31%
December 31, 1993 1.00 0.0246 (0.0246) 1.00 2.49% 349,808 0.59% 2.47%
December 31, 1992 1.00 0.0315 (0.0315) 1.00 3.18% 336,804 0.60% 3.15%
December 31, 1991 1.00 0.0521 (0.0521) 1.00 5.34% 352,803 0.57% 5.30%
December 31, 1990 1.00 0.0743 (0.0743) 1.00 7.69% 266,179 0.66% 7.41%
December 31, 1989 1.00 0.0817 (0.0817) 1.00 8.48% 179,730 0.69% 8.21%
December 31, 1988 1.00 0.0647 (0.0647) 1.00 6.67% 169,967 0.71% 6.47%
December 31, 1987 1.00 0.0550 (0.0550) 1.00 5.64% 195,394 0.72% 5.53%
December 31, 1986 1.00 0.0587 (0.0587) 1.00 6.03% 208,498 0.70% 5.89%
December 31, 1985 1.00 0.0731 (0.0731) 1.00 7.56% 133,770 0.73% 7.32%
TAX EXEMPT MONEY FUND
June 30, 1995++ $1.00 $0.0161 $(0.0161) $1.00 1.63% $ 261,179 0.64%+ 3.25%+
December 31, 1994 1.00 0.0216 (0.0216) 1.00 2.19% 248,045 0.65% 2.16%
December 31, 1993 1.00 0.0171 (0.0171) 1.00 1.73% 270,474 0.63% 1.71%
December 31, 1992 1.00 0.0232 (0.0232) 1.00 2.35% 243,333 0.63% 2.32%
December 31, 1991 1.00 0.0389 (0.0389) 1.00 3.96% 252,393 0.61% 3.90%
December 31, 1990 1.00 0.0522 (0.0522) 1.00 5.35% 251,439 0.59% 5.20%
December 31, 1989 1.00 0.0555 (0.0555) 1.00 5.69% 229,859 0.60% 5.58%
December 31, 1988 1.00 0.0459 (0.0459) 1.00 4.69%* 205,166 0.57%(a) 4.57%(a)
December 31, 1987 1.00 0.0398 (0.0398) 1.00 4.05%* 222,820 0.53%(a) 3.98%(a)
December 31, 1986 1.00 0.0434 (0.0434) 1.00 4.43%* 230,799 0.49%(a) 4.31%(a)
December 31, 1985 1.00 0.0483 (0.0483) 1.00 4.94%* 116,526 0.47%(a) 4.88%(a)
</TABLE>
+ Annualized.
++ Unaudited.
(a) Net of fees waived by the Adviser which amounted to $0.0008, $0.0016,
$0.0019 and $0.0029 per share in the years 1988, 1987, 1986 and 1985,
respectively.
* Total return would have been lower had the Advisor not waived fees.
Periods less than a year are not annualized.
NO SALES OR REDEMPTION CHARGES
DISTRIBUTORS
Freedom Distributors Corporation
One Beacon Street
Boston, Massachusetts 02108-3105
Telephone Toll Free
800-453-8206
INVESTMENT ADVISOR
Freedom Capital Management Corporation
One Beacon Street
Boston, Massachusetts 02108-3105
TRANSFER AND SHAREHOLDER
SERVICES AGENT
John Hancock Investor
Services Corporation
P.O. Box 9102
Boston, Massachusetts 02205-9102
Telephone Toll Free
800-257-3336
MYSTIC SEAPORT, MYSTIC CONNECTICUT
Settled in the mid-eighteenth century, the Mystic
area grew rapidly until ship and boat yards lined
the entire six-mile Mystic River.
In 1929, after the decline of the ship-building
industry, three Mystic residents founded the
Maritime Historical Association to preserve the
area's maritime heritage.
Today, Mystic Seaport, a privately operated
non-profit educational institution, provides a view
of life in New England's small coastal communities
through their 19th century development. It is home
of the Charles W. Morgan, the only surviving wooden
whaleship from the 19th century American whalers'
fleet.
Flag Logo
(Logo of Freedom Group of Money Funds)
FREEDOM GROUP OF MONEY FUNDS
This report has been prepared for shareholders and
may be distributed to others only if preceded or
accompanied by a current prospectus for the Freedom
Group of Money Funds.
FOISA 0695
FREEDOM
GROUP OF MONEY FUNDS
(Drawing of sailing ship and seaport)
FREEDOM
CASH MANAGEMENT FUND
FREEDOM
GOVERNMENT SECURITIES FUND
FREEDOM
TAX EXEMPT MONEY FUND
SEMI-ANNUAL REPORT
JUNE 30, 1995
