Tax Exempt
SEMI-ANNUAL REPORT
December 31, 1996
(Unaudited)
Ohio Tax-Free Money Fund
Tax-Free Money Fund
California Tax-Free Money Fund
Royal Palm Florida Tax-Free Money Fund
Tax-Free Intermediate Term Fund
Ohio Insured Tax-Free Fund
MIDWEST GROUP
LETTER FROM THE PRESIDENT
===============================================================================
Dear Fellow Shareholder:
This past year proved to be anything but stable for the bond market. Early in
1996, economists were concerned about a possible recession. In response, the
Federal Reserve Board lowered interest rates 1/4% to boost the sluggish
economy. By mid-year, all discussion about a recession disappeared as it
became apparent that the economy was growing at an above average pace. Bond
prices fell, sending yields higher as investors became concerned that a robust
economy and strong employment would lead to higher inflation. At the start of
the fourth quarter the market rallied briefly in response to slower growth,
but retreated when economic vigor renewed concerns of rising inflation. The
30-year Treasury bond, after reaching a yield of 6.35% in early December,
closed the year at a yield of 6.60%.
Municipal bonds turned in a strong performance in 1996 relative to Treasuries.
Although they began the year on weak footing, prices firmed notably once the
flat-tax reform issue faded into the background. By year-end, municipal bonds
regained much lost ground and outperformed Treasuries for the year.
At their current levels, municipal bonds continue to offer good value to
investors. While bonds may be trapped in a narrow trading range in the
near-term, we expect them to benefit from an economy enjoying moderate growth
with fairly low levels of inflation. We continue to favor municipal bonds with
high credit quality and good liquidity for which there exists an active and
efficient market. As in the past, the Funds within the Midwest Group Tax-Free
Trust provide high-quality alternatives for investors seeking current tax-free
income consistent with protection of capital.
OHIO TAX-FREE MONEY FUND
The Fund's 7-day effective yield as of December 31, 1996 was 3.30%, which is
equivalent to a taxable yield of 5.91%, assuming the maximum combined federal
and Ohio income tax bracket for individuals.
TAX-FREE MONEY FUND
The Fund's 7-day effective yield as of December 31, 1996 was 3.08%, which is
equivalent to a taxable yield of 5.10%, assuming the maximum federal income
tax bracket for individuals.
CALIFORNIA TAX-FREE MONEY FUND
The Fund's 7-day effective yield as of December 31, 1996 was 3.30%, which is
equivalent to a taxable yield of 6.14%, assuming the maximum combined federal
and California income tax bracket for individuals.
ROYAL PALM FLORIDA TAX-FREE MONEY FUND
The Fund's 7-day effective yields as of December 31, 1996 were 3.24% for
Retail shares and 3.50% for Institutional shares, which are equivalent to
taxable yields of 5.36% and 5.79%, respectively, assuming the maximum federal
income tax bracket for individuals.
TAX-FREE INTERMEDIATE TERM FUND
The Fund's yields for December 31, 1996 were 4.37% for Class A shares and
3.71% for Class C shares, which are equivalent to taxable yields of 7.24% and
6.14%, respectively, assuming the maximum federal income tax bracket for
individuals. The Fund's total returns for the twelve months ended December 31,
1996 for Class A shares and Class C shares, excluding the impact of applicable
sales loads, were 3.87% and 3.31%, respectively.
OHIO INSURED TAX-FREE FUND
The Fund's yields for December 31, 1996 were 4.80% for Class A shares and
4.25% for Class C shares, which are equivalent to taxable yields of 8.59% and
7.61%, respectively, assuming the maximum combined federal and Ohio income tax
bracket for individuals. The Fund's total returns for the twelve months ended
December 31, 1996 for Class A shares and Class C shares, excluding the impact
of applicable sales loads, were 3.07% and 2.51%, respectively.
In addition, we have recently opened an Institutional class of shares in the
Ohio Tax-Free Money Fund, similar to that of the Royal Palm Tax-Free Money
Fund. These shares are specifically geared toward institutional investors,
including banks and bank trust departments, brokerage firms and corporations.
Midwest Group provides clients with opportunities to generate income through a
variety of options. As always, we remain committed to helping you meet your
investment objectives.
Sincerely,
/s/ Robert H. Leshner
Robert H. Leshner
President
February 16, 1997
Photo of: Robert H. Leshner, President
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1996 (Unaudited)
=============================================================================================================
OHIO CALIFORNIA
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND MONEY FUND MONEY FUND
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities:
At acquisition cost.................................. $ 275,098,090 $ 38,047,960 $ 38,475,104
============== ============== ===============
At amortized cost.................................... $ 274,936,278 $ 38,015,241 $ 38,440,167
============== ============== ===============
At value (Note 2).................................... $ 274,936,278 $ 38,015,241 $ 38,440,167
Cash ................................................... 2,711,851 -- --
Interest receivable .................................... 2,384,145 290,575 308,657
Other assets ........................................... 50,860 7,146 8,353
-------------- -------------- ---------------
TOTAL ASSETS....................................... 280,083,134 38,312,962 38,757,177
-------------- -------------- ---------------
LIABILITIES
Bank overdraft.......................................... -- 150,406 64,288
Dividends payable....................................... 258,873 3,294 1,987
Payable for securities purchased........................ -- 1,200,739 --
Payable to affiliates (Note 4) ......................... 126,104 24,178 27,856
Other accrued expenses and liabilities ................. 11,072 3,984 3,730
-------------- -------------- ---------------
TOTAL LIABILITIES.................................. 396,049 1,382,601 97,861
-------------- -------------- ---------------
NET ASSETS ............................................ $ 279,687,085 $ 36,930,361 $ 38,659,316
============== ============== ===============
Net assets consist of:
Capital shares ......................................... $ 279,674,180 $ 36,927,811 $ 38,660,209
Undistributed net investment income..................... -- 3,600 --
Accumulated net realized gains (losses) from
security transactions................................ 12,905 ( 1,050 ) ( 893 )
-------------- -------------- ---------------
Net assets.............................................. $ 279,687,085 $ 36,930,361 $ 38,659,316
============== ============== ===============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) .......... 279,674,336 36,938,254 38,660,209
============== ============== ===============
Net asset value, offering price and redemption price
per share (Note 2) .................................. $ 1.00 $ 1.00 $ 1.00
============== ============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS For
the Six Months Ended December 31, 1996 (Unaudited)
=============================================================================================================
OHIO CALIFORNIA
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND MONEY FUND MONEY FUND
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income...................................... $ 4,665,261 $ 545,042 $ 728,460
-------------- -------------- ---------------
EXPENSES
Investment advisory fees (Note 4).................... 588,522 71,497 102,741
Distribution expenses (Note 4)....................... 246,446 5,854 6,450
Accounting services fees (Note 4).................... 26,500 19,500 19,500
Transfer agent and shareholder services fees (Note 4) 37,788 14,633 11,856
Postage and supplies................................. 21,717 7,223 3,239
Professional fees.................................... 10,356 3,756 3,756
Insurance expense.................................... 9,948 1,917 2,140
Registration fees.................................... 5,180 8,852 4,671
Custodian fees (Note 4).............................. -- 858 3,470
Pricing expenses..................................... 4,491 2,273 2,988
Trustees' fees and expenses ......................... 1,575 1,575 1,575
Reports to shareholders ............................. 2,347 965 832
Other expenses ...................................... 7,196 2,660 1,150
-------------- -------------- ---------------
TOTAL EXPENSES ......................................... 962,066 141,563 164,368
-------------- -------------- ---------------
NET INVESTMENT INCOME .................................. 3,703,195 403,479 564,092
-------------- -------------- ---------------
NET REALIZED GAINS FROM SECURITY TRANSACTIONS .......... -- -- 687
-------------- -------------- ---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ............. $ 3,703,195 $ 403,479 $ 564,779
-------------- -------------- ---------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended December 31, 1996 and June 30, 1996
==================================================================================================================================
CALIFORNIA
OHIO TAX-FREE TAX-FREE TAX-FREE
MONEY FUND MONEY FUND MONEY FUND
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
DEC. 31, 1996 JUNE 30, DEC. 31, 1996 JUNE 30, DEC. 31, 1996 JUNE 30,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income .......................... $ 3,703,195 $ 7,465,588 $ 403,479 $ 870,333 $ 564,092 $ 818,679
Net realized gains (losses) from
security transactions ......................... -- (709) -- (564) 687 116
------------- ------------- ---------- ----------- ---------- ----------
Net increase in net assets from operations ....... 3,703,195 7,464,879 403,479 869,769 564,779 818,795
------------- ------------- ---------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME ..................... (3,703,195) (7,465,588) (399,879) (873,034) (564,092) (818,679)
------------- ------------- ---------- ----------- ---------- ----------
FROM CAPITAL SHARE
TRANSACTIONS (NOTE 5):
Proceeds from shares sold ...................... 336,458,026 565,969,095 29,729,090 49,546,956 88,025,176 119,659,991
Net asset value of shares issued in reinvestment
of distributions to shareholders .............. 2,360,738 4,885,920 391,518 839,246 530,025 753,406
Payments for shares redeemed ................... (299,454,571) (557,137,769)(18,536,235) (51,732,766) (86,018,633) 103,816,208)
------------- ------------- ---------- ----------- ---------- -----------
Net increase (decrease) in net assets from
capital share transactions ..................... 39,364,193 13,717,246 11,584,373 (1,346,564) 2,536,568 16,597,189
------------- ------------- ---------- ----------- ---------- -----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS .................................. 39,364,193 13,716,537 11,587,973 (1,349,829) 2,537,255 16,597,305
NET ASSETS:
Beginning of period ........................... 240,322,892 226,606,355 25,342,388 26,692,217 36,122,061 19,524,756
------------- ------------- ---------- ----------- ---------- -----------
End of period ................................. $ 279,687,085 $ 240,322,892 $36,930,361 $25,342,388 $38,659,316 $36,122,061
============= ============= ========== =========== ========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME .............. $ -- $ -- $ 3,600 $ -- $ -- $ --
============= ============= ========== =========== ========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1996 (Unaudited)
=======================================================================================================
ROYAL PALM
TAX-FREE OHIO INSURED FLORIDA
INTERMEDIATE TAX-FREE TAX-FREE
TERM FUND FUND MONEY FUND
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities:
At acquisition cost ................................ $ 66,462,541 $ 71,959,950 $ 49,495,278
============ ============ ============
At amortized cost .................................. $ 66,135,352 $ 71,919,434 $ 49,444,692
============ ============ ============
At value (Note 2) .................................. $ 68,546,362 $ 76,786,651 $ 49,444,692
Cash .................................................. 33,857 73,039 368,482
Receivable for capital shares sold .................... 40,507 77,716 --
Interest receivable ................................... 1,308,048 750,849 321,382
Other assets .......................................... 17,322 20,490 9,992
------------ ------------ ------------
TOTAL ASSETS ....................................... 69,946,096 77,708,745 50,144,548
------------ ------------ ------------
LIABILITIES
Dividends payable ..................................... 47,195 77,795 53,610
Payable for capital shares redeemed ................... 167,705 38,662 --
Payable for securities purchased ...................... -- -- 1,221,399
Payable to affiliates (Note 4) ........................ 49,328 43,112 19,802
Other accrued expenses and liabilities ................ 5,985 6,397 4,512
------------ ------------ ------------
TOTAL LIABILITIES ................................ 270,213 165,966 1,299,323
------------ ------------ ------------
NET ASSETS ............................................ $ 69,675,883 $ 77,542,779 $ 48,845,225
============ ============ ============
Net assets consist of:
Capital shares ........................................ $ 68,745,123 $ 72,601,169 $ 48,846,357
Accumulated net realized gains (losses) from
security transactions ................................ (1,480,250) 74,393 (1,132)
Net unrealized appreciation on investments ............ 2,411,010 4,867,217 --
------------ ------------ ------------
Net assets ............................................ $ 69,675,883 $ 77,542,779 $ 48,845,225
============ ============ ============
PRICING OF CLASS A SHARES
Net assets applicable to Class A shares ............... $ 64,448,995 $ 73,472,848 $ 32,565,831
============ ============ ============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) (Note 5) ............................ 5,848,666 6,004,449 32,566,983
============ ============ ============
Net asset value and redemption price per share (Note 2) $ 11.02 $ 12.24 $ 1.00
============ ============ ============
Maximum offering price per share (Note 2) ............. $ 11.24 $ 12.75 $ 1.00
============ ============ ============
PRICING OF CLASS C SHARES(A)
Net assets applicable to Class C shares(A) ............ $ 5,226,888 $ 4,069,931 $ 16,279,394
============ ============ ============
Shares of beneficial interest outstanding (unlimited
number of shares authorized,
no par value) (Note 5) ............................. 474,267 332,643 16,279,375
============ ============ ============
Net asset value, offering price and redemption
price per share (Note 2) ........................... $ 11.02 $ 12.24 $ 1.00
============ ============ ============
<FN>
(A) Except for the Royal Palm Florida Tax-Free Money Fund which offers Class B
shares (Note 2).
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Six Months Ended December 31, 1996 (Unaudited)
===================================================================================================
ROYAL PALM
TAX-FREE OHIO INSURED FLORIDA
INTERMEDIATE TAX-FREE TAX-FREE
TERM FUND FUND MONEY FUND
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income ..................................... $1,976,699 $2,302,720 $ 799,852
---------- ---------- ----------
EXPENSES
Investment advisory fees (Note 4) ................... 179,118 198,513 112,092
Distribution expenses, Class A (Note 4) ............. 48,969 6,757 20,286
Distribution expenses, Class C (Note 4) ............. 12,692 4,717 --
Transfer agent and shareholder services fees,
Class A (Note 4) ................................. 35,235 20,262 6,000
Transfer agent and shareholder services fees,
Class C (Note 4) ................................. 6,000 6,000 --
Transfer agent and shareholder services fees,
Class B (Note 4) ................................. -- -- 6,000
Accounting services fees (Note 4) ................... 28,500 28,500 25,500
Postage and supplies ................................ 24,064 12,914 5,353
Pricing expenses .................................... 8,254 8,223 2,378
Professional fees ................................... 4,956 5,256 3,756
Insurance expense ................................... 4,017 4,152 2,207
Custodian fees ...................................... 1,359 1,759 6,505
Registration fees, Common ........................... 2,341 757 4,048
Registration fees, Class A .......................... 4,841 3,323 --
Registration fees, Class C .......................... 4,074 2,163 --
Reports to shareholders ............................. 2,987 1,849 472
Trustees' fees and expenses ......................... 1,575 1,575 1,575
Other expenses ...................................... 1,241 2,373 2,219
---------- ---------- ----------
TOTAL EXPENSES ......................................... 370,223 309,093 198,391
Fees waived by the Adviser (Note 4) ................. -- -- ( 38,837 )
Class B expenses reimbursed by the Adviser (Note 4) . -- -- ( 11,507 )
---------- ---------- ----------
NET EXPENSES ........................................... 370,223 309,093 148,047
---------- ---------- ----------
NET INVESTMENT INCOME .................................. 1,606,476 1,993,627 651,805
---------- ---------- ----------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions ..... 140,532 74,887 66
Net change in unrealized appreciation/depreciation
on investments .................................. 990,103 1,732,034 --
---------- ---------- ----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ....... 1,130,635 1,806,921 66
---------- ---------- ----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ............. $2,737,111 $3,800,548 $ 651,871
========== ========== ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended December 31, 1996 and June 30, 1996
===================================================================================================================================
ROYAL PALM
TAX-FREE FLORIDA
INTERMEDIATE OHIO INSURED TAX-FREE
TERM FUND TAX-FREE FUND MONEY FUND
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
DEC. 31, 1996 JUNE 30, DEC. 31, 1996 JUNE 30, DEC. 31, 1996 JUNE 30,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income ........................ $ 1,606,476 $ 3,575,536 $ 1,993,627 $ 4,034,181 $ 651,805 $ 984,325
Net realized gains from security transactions 140,532 418,573 74,887 637,863 66 --
Net change in unrealized appreciation/
depreciation on investments ................. 990,103 (378,154) 1,732,034 (557,750) -- --
---------- ---------- ---------- ---------- -------- --------
Net increase in net assets from operations ..... 2,737,111 3,615,955 3,800,548 4,114,294 651,871 984,325
---------- ---------- ---------- ---------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A .......... (1,500,636) (3,370,231) (1,907,078) (3,835,050) (405,807) (941,390)
From net investment income, Class C .......... (105,840) (205,305) (86,549) ( 199,131) -- --
From net investment income, Class B .......... -- -- -- -- (245,998) (42,935)
---------- ---------- ---------- ---------- -------- --------
Decrease in net assets from distributions to
shareholders ................................. (1,606,476) (3,575,536) (1,993,627) (4,034,181) (651,805) (984,325)
---------- ---------- ---------- ---------- -------- --------
FROM CAPITAL SHARES
TRANSACTIONS (NOTE 5):
CLASS A
Proceeds from shares sold .................... 6,830,128 15,528,848 79,345,672 149,454,410 30,350,741 51,380,671
Net asset value of shares issued in
reinvestment of distributions to shareholders 1,190,289 2,685,608 1,444,503 2,832,266 338,596 836,936
Payments for shares redeemed ................. (12,292,601) (31,733,808) (84,980,757) (147,848,817) (27,029,932)(47,429,798)
---------- ---------- ---------- ---------- -------- --------
Net increase (decrease) in net assets
from Class A share transactions .............. (4,272,184) (13,519,352) (4,190,582) 4,437,859 3,659,405 4,787,809
---------- ---------- ---------- ---------- -------- --------
CLASS C (A)
Proceeds from shares sold .................... 975,857 3,208,583 573,086 1,212,806 13,801,338 19,950,303
Net asset value of shares issued in
reinvestment of distributions to shareholders 101,101 192,684 75,707 173,201 -- --
Payments for shares redeemed ................. (1,172,931) (2,962,890) (633,030) (1,551,557) (16,666,723) (805,545)
---------- ---------- ---------- ---------- -------- ---------
Net increase (decrease) in net assets
from Class C share transactions (A) .......... (95,973) 438,377 15,763 (165,550) (2,865,385) 19,144,758
---------- ---------- ---------- ---------- -------- ---------
TOTAL INCREASE (DECREASE)
IN NET ASSETS ............................... (3,237,522) (13,040,556) (2,367,898) 4,352,422 794,086 23,932,567
NET ASSETS:
Beginning of period .......................... 72,913,405 85,953,961 79,910,677 75,558,255 48,051,139 24,118,572
---------- ---------- ---------- ---------- -------- ---------
End of period ................................ $ 69,675,883 $ 72,913,405 $ 77,542,779 $ 79,910,677 $ 48,845,225 $48,051,139
========== ========== ========== ========== ======== =========
<FN>
(A) Except for the Royal Palm Florida Tax-Free Money Fund
which offers Class B shares (Note 2).
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OHIO TAX-FREE MONEY FUND
FINANCIAL HIGHLIGHTS
==================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
==================================================================================================================
SIX MONTHS
ENDED
DEC. 31, YEAR ENDED JUNE 30,
1996
(UNAUDITED) 1996 1995 1994 1993 1992
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- --------- --------- --------- ----------
Net investment income...................... 0.015 0.031 0.031 0.020 0.022 0.034
---------- ---------- --------- --------- --------- ----------
Distributions from net investment income .. (0.015) (0.031) (0.031) (0.020) (0.022) (0.034)
---------- ---------- --------- --------- --------- ----------
Net asset value at end of period........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========= ========= ========= ==========
Total return............................... 2.90%(A) 3.14% 3.12% 1.99% 2.19% 3.52%
========== ========== ========= ========= ========= ==========
Net assets at end of period (000's) ....... $279,687 $240,323 $226,606 $213,001 $221,775 $ 218,503
========== ========== ========= ========= ========= ==========
Ratio of expenses to average net assets ... 0.75%(A) 0.75% 0.74% 0.73% 0.74% 0.75%
Ratio of net investment income to
average net assets...................... 2.88%(A) 3.09% 3.08% 1.97% 2.16% 3.43%
<FN>
(A) Annualized.
</FN>
</TABLE>
<TABLE>
<CAPTION>
TAX-FREE MONEY FUND
FINANCIAL HIGHLIGHTS
================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
================================================================================================================
SIX MONTHS
ENDED
DEC. 31, YEAR ENDED JUNE 30,
1996
(UNAUDITED) 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- --------- --------- --------- ----------
Net investment income...................... 0.014 0.031 0.030 0.021 0.024 0.036
---------- ---------- --------- --------- --------- ----------
Distributions from net investment income... (0.014) (0.031) (0.030) (0.021) (0.024) (0.036)
---------- ---------- --------- --------- --------- ----------
Net asset value at end of period........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========= ========= ========= ==========
Total return .............................. 2.80%(A) 3.15% 3.07% 2.12% 2.40% 3.63%
========== ========== ========= ========= ========= ==========
Net assets at end of period (000's) ....... $ 36,930 $ 25,342 $ 26,692 $ 31,168 $34,787 $50,000
========== ========== ========= ========= ========= ==========
Ratio of expenses to average net assets.... 0.99%(A) 0.99% 0.99% 0.99% 0.99% 0.99%
Ratio of net investment income to
average net assets 2.81%(A) 3.09% 3.00% 2.09% 2.39% 3.55%
<FN>
(A) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY FUND
FINANCIAL HIGHLIGHTS
=================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
=================================================================================================================
SIX MONTHS
ENDED
DEC. 31, YEAR ENDED JUNE 30,
1996
(UNAUDITED) 1996 1995 1994 1993 1992
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- --------- --------- --------- ----------
Net investment income...................... 0.014 0.029 0.029 0.019 0.022 0.035
---------- ---------- --------- --------- --------- ----------
Distributions from net investment income... (0.014) (0.029) (0.029) (0.019) (0.022) (0.035)
---------- ---------- --------- --------- --------- ----------
Net asset value at end of period........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========= ========= ========= ==========
Total return .............................. 2.75%(B) 2.95% 2.95% 1.93% 2.26% 3.71%
========== ========== ========= ========= ========= ==========
Net assets at end of period (000's) ....... $ 38,659 $ 36,122 $ 19,525 $ 24,508 $34,487 $21,246
========== ========== ========= ========= ========= ==========
Ratio of expenses to average net assets(A) 0.80%(B) 0.80% 0.70% 0.60% 0.56% 0.34%
Ratio of net investment income to
average net assets 2.74%(B) 2.88% 2.83% 1.90% 2.22% 3.49%
<FN>
(A)Absent fee waivers and/or expense reimbursements by the Adviser, the ratio
of expenses to average net assets would have been 0.82%, 0.85%, 0.86%, 0.85%
and 0.89% for the years ended June 30, 1996, 1995, 1994, 1993 and 1992,
respectively.
(B)Annualized.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
See accompanying notes to finacial statements.
TAX-FREE INTERMEDIATE TERM FUND - CLASS A
FINANCIAL HIGHLIGHTS
================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
================================================================================================================
SIX MONTHS
ENDED
DEC. 31, YEAR ENDED JUNE 30,
1996
(UNAUDITED) 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period..... $ 10.85 $ 10.86 $ 10.69 $ 10.98 $ 10.42 $ 10.15
---------- ---------- --------- --------- --------- ----------
Income from investment operations:
Net investment income .................. 0.25 0.50 0.49 0.48 0.53 0.59
Net realized and unrealized gains (losses)
on investments........................ 0.17 (0.01) 0.17 (0.29) 0.56 0.27
---------- ---------- --------- --------- --------- ----------
Total from investment operations .......... 0.42 0.49 0.66 0.19 1.09 0.86
---------- ---------- --------- --------- --------- ----------
Distributions from net investment income .. (0.25) (0.50) (0.49) (0.48) (0.53) (0.59)
---------- ---------- --------- --------- --------- ----------
Net asset value at end of period........... $ 11.02 $ 10.85 $ 10.86 $ 10.69 $ 10.98 $ 10.42
========== ========== ========= ========= ========= ==========
Total return(A) ........................... 7.73%(B) 4.51% 6.36% 1.70% 10.75% 8.78%
========== ========== ========= ========= ========= ==========
Net assets at end of period (000's) ....... $ 64,449 $ 67,675 $ 81,140 $106,472 $82,168 $26,720
========== ========== ========= ========= ========= ==========
Ratio of expenses to average net assets ... 0.99%(B) 0.99% 0.99% 0.99% 0.99% 1.07%
Ratio of net investment income to
average net assets 4.52%(B) 4.52% 4.59% 4.35% 4.90% 5.75%
Portfolio turnover rate.................... 42%(B) 37% 32% 46% 28% 12%
<FN>
(A) The total returns shown do not include the effect of applicable sales loads.
(B) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TAX-FREE INTERMEDIATE TERM FUND - CLASS C FINANCIAL HIGHLIGHTS
=================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
=================================================================================================================
SIX MONTHS FROM DATE OF
ENDED PUBLIC OFFERING
DEC. 31, YEAR ENDED JUNE 30, (FEB. 1, 1994)
1996 THROUGH
(UNAUDITED) 1996 1995 JUNE 30, 1994
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period......... $ 10.85 $ 10.86 $ 10.69 $ 11.27
------------ -------------- ------------- --------------
Income from investment operations:
Net investment income....................... 0.22 0.44 0.44 0.20
Net realized and unrealized gains (losses)
on investments............................ 0.17 (0.01) 0.17 (0.58)
------------ -------------- ------------- --------------
Total from investment operations............... 0.39 0.43 0.61 (0.38)
------------ -------------- ------------- --------------
Distributions from net investment income....... (0.22) (0.44) (0.44) (0.20)
------------ -------------- ------------- --------------
Net asset value at end of period............... $ 11.02 $ 10.85 $ 10.86 $ 10.69
============ ============== ============= ==============
Total return(A) ............................... 7.13%(C) 4.00% 5.82% (8.28%)(C)
============ ============== ============= ==============
Net assets at end of period (000's)............ $ 5,227 $ 5,239 $ 4,814 $ 3,084
============ ============== ============= ==============
Ratio of expenses to average net assets(B) .... 1.57%(C) 1.49% 1.49% 1.45%(C)
Ratio of net investment income to average net assets 3.94%(C) 4.02% 4.08% 3.79%(C)
Portfolio turnover rate........................ 42%(C) 37% 32% 46%(C)
<FN>
(A) The total returns shown do not include the effect of applicable sales loads.
(B) Absent expense reimbursements by the Adviser, the ratio of expenses to
average net assets would have been 1.75%(C) for the period ended June 30, 1994.
(C) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OHIO INSURED TAX-FREE FUND - CLASS A
FINANCIAL HIGHLIGHTS
================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
================================================================================================================
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DEC. 31, 1996
(UNAUDITED) 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period..... $ 11.97 $ 11.99 $ 11.74 $ 12.41 $ 11.67 $ 11.13
---------- ---------- --------- --------- --------- ----------
Income from investment operations:
Net investment income .................. 0.31 0.62 0.63 0.61 0.65 0.70
Net realized and unrealized gains (losses)
on investments........................ 0.27 (0.02) 0.25 (0.64) 0.74 0.54
---------- ---------- --------- --------- --------- ----------
Total from investment operations .......... 0.58 0.60 0.88 (0.03) 1.39 1.24
---------- ---------- --------- --------- --------- ----------
Less distributions:
Distributions from net investment income (0.31) (0.62) (0.63) (0.61) (0.65) (0.70)
Distributions from net realized gains... -- -- -- (0.03) -- --
---------- ---------- --------- --------- --------- ----------
Total distributions ....................... (0.31) (0.62) (0.63) (0.64) (0.65) (0.70)
---------- ---------- --------- --------- --------- ----------
Net asset value at end of period........... $ 12.24 $ 11.97 $ 11.99 $ 11.74 $ 12.41 $ 11.67
========== ========== ========= ========= ========= ==========
Total return(A) .......................... 9.67%(C) 5.05% 7.75% (0.41%) 12.24% 11.55%
========== ========== ========= ========= ========= ==========
Net assets at end of period (000's) ....... $ 73,473 $ 75,938 $ 71,393 $ 79,889 $81,101 $49,288
========== ========== ========= ========= ========= ==========
Ratio of expenses to average net assets(B) 0.75%(C) 0.75% 0.75% 0.75% 0.75% 0.60%
Ratio of net investment income to
average net assets 5.04%(C) 5.12% 5.35% 4.94% 5.35% 6.10%
Portfolio turnover rate.................... 40%(C) 46% 29% 45% 15% 3%
<FN>
(A) The total returns shown do not include the effect of applicable sales loads.
(B) Absent fee waivers and/or expense reimbursements by the Adviser, the ratio
of expenses to average net assets would have been 0.77% and 0.77% for the
years ended June 30, 1995 and 1992, respectively.
(C) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OHIO INSURED TAX-FREE FUND - CLASS C
FINANCIAL HIGHLIGHTS
==================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
==================================================================================================================
SIX MONTHS FROM DATE OF
ENDED PUBLIC OFFERING
DEC. 31, YEAR ENDED JUNE 30, (NOV. 1, 1993)
1996 THROUGH
(UNAUDITED) 1996 1995 JUNE 30, 1994
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period......... $ 11.97 $ 12.00 $ 11.74 $ 12.62
------------ -------------- ------------- --------------
Income from investment operations:
Net investment income....................... 0.27 0.56 0.57 0.36
Net realized and unrealized gains (losses)
on investments............................ 0.27 (0.03) 0.26 (0.85)
------------ -------------- ------------- --------------
Total from investment operations............... 0.54 0.53 0.83 (0.49)
------------ -------------- ------------- -------------
Less distributions:
Distributions from net investment income.... (0.27) (0.56) (0.57) (0.36)
Distributions from net realized gains....... -- -- -- (0.03)
------------ -------------- ------------- --------------
Total distributions............................ (0.27) (0.56) (0.57) (0.39)
------------ -------------- ------------ --------------
Net asset value at end of period............... $ 12.24 $ 11.97 $ 12.00 $ 11.74
============ ============== ============= ==============
Total return(A) ............................... 9.06%(C) 4.44% 7.31% (6.05%)(C)
============ ============== ============= ==============
Net assets at end of period (000's)............ $ 4,070 3,972 $ 4,165 $ 2,659
============ ============= ============= ==============
Ratio of expenses to average net assets(B) .... 1.33%(C) 1.25% 1.25% 1.22%(C)
Ratio of net investment income to average net assets 4.46%(C) 4.62% 4.84% 4.09%(C)
Portfolio turnover rate........................ 40%(C) 46% 29% 45%(C)
<FN>
(A) The total returns shown do not include the effect of applicable sales loads.
(B) Absent fee waivers and/or expense reimbursements by the Adviser, the ratio
of expenses to average net assets would have been 1.27% and 1.28%(C) for the
periods ended June 30, 1995 and 1994, respectively.
(C) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROYAL PALM FLORIDA TAX-FREE MONEY FUND - CLASS A
FINANCIAL HIGHLIGHTS
===================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===================================================================================================================
SIX MONTHS FROM DATE OF
ENDED PUBLIC OFFERING
DEC. 31, YEAR ENDED JUNE 30, (NOV. 13, 1992)
1996 THROUGH
(UNAUDITED) 1996 1995 1994 JUNE 30, 1993(A)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- --------- ---------- --------- -----------
Net investment income........................... 0.014 0.032 0.031 0.021 0.016
---------- --------- ---------- --------- -----------
Distributions from net investment income ....... (0.014) (0.032) (0.031) (0.021) (0.016)
---------- --------- ---------- --------- -----------
Net asset value at end of period ............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========= ========== ========= ===========
Total return ................................... 2.83%(C) 3.29% 3.17% 2.11% 2.49%(C)
========== ========= ========== ========= ===========
Net assets at end of period (000's) ............ $ 32,566 $ 28,906 $ 24,119 $ 26,276 $ 21,907
========== ========= ========== ========= ===========
Ratio of expenses to average net assets(B) .... 0.75%(C) 0.61% 0.66% 0.58% 0.34%(C)
Ratio of net investment income to
average net assets 2.81%(C) 3.24% 3.12% 2.10% 2.41%(C)
<FN>
(A) No income was earned or expenses incurred from the start of business
through the date of public offering.
(B) Absent fee waivers and/or expense reimbursements by the Adviser, the ratio
of expenses to average net assets would have been 0.92%(C), 0.80%, 0.80%,
0.81% and 0.94%(C) for the periods ended December 31, 1996 and June 30,
1996, 1995, 1994 and 1993, respectively (Note 4).
(C) Annualized.
</FN>
</TABLE>
<TABLE>
<CAPTION>
ROYAL PALM FLORIDA TAX-FREE MONEY FUND - CLASS B
FINANCIAL HIGHLIGHTS
=================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
=================================================================================================================
SIX MONTHS
ENDED PERIOD
DEC. 31, ENDED
1996 JUNE 30,
(UNAUDITED) 1996 (A)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value at beginning of period .................................. $ 1.000 $ 1.000
-------------- ---------------
Net investment income.................................................... 0.015 0.003
-------------- ---------------
Distributions from net investment income ................................ $ (0.015) $ (0.003)
-------------- ---------------
Net asset value at end of period ........................................ $ 1.000 $ 1.000
============== ===============
Total return............................................................. 3.08% (C) 3.03% (C)
============== ===============
Net assets at end of period (000's) ..................................... $ 16,279 $ 19,145
============== ===============
Ratio of expenses to average net assets(B) ............................. 0.50% (C) 0.50% (C)
Ratio of net investment income to average net assets..................... 3.05% (C) 3.03% (C)
<FN>
(A) Represents the period from the initial public offering of Class B shares
(May 29, 1996) through June 30, 1996.
(B) Absent fee waivers and expense reimbursements by the Adviser, the ratio of
expenses to average net assets would have been 0.81%(C) and 0.87%(C) for
the periods ended December 31, 1996 and June 30, 1996, respectively (Note 4).
(C) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 (Unaudited)
==============================================================================
1. ORGANIZATION
Midwest Group Tax Free Trust (the Trust) is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company. The Trust was established as a Massachusetts business
trust under a Declaration of Trust dated April 13, 1981. The Declaration of
Trust, as amended, permits the Trustees to issue an unlimited number of shares
of six funds: the Ohio Tax-Free Money Fund, the Tax-Free Money Fund, the
California Tax-Free Money Fund, the Royal Palm Florida Tax-Free Money Fund,
the Tax-Free Intermediate Term Fund and the Ohio Insured Tax-Free Fund
(individually a Fund and collectively the Funds).
The Ohio Tax-Free Money Fund seeks the highest level of current income exempt
from federal income tax and Ohio personal income tax, consistent with
liquidity and stability of principal. The Fund invests primarily in a
portfolio of high-quality, short-term Ohio municipal obligations.
The Tax-Free Money Fund seeks the highest level of interest income exempt from
federal income tax, consistent with protection of capital, by investing
primarily in high-quality, short-term municipal obligations.
The California Tax-Free Money Fund seeks the highest level of interest income
exempt from federal and California income taxes, consistent with liquidity and
stability of principal, by investing primarily in high-quality, short-term
California municipal obligations.
The Royal Palm Florida Tax-Free Money Fund seeks the highest level of interest
income exempt from federal income tax, consistent with liquidity and stability
of principal, by investing primarily in high-quality, short-term Florida
municipal obligations the value of which is exempt from the Florida intangible
personal property tax.
The Tax-Free Intermediate Term Fund seeks high current income exempt from
federal income tax, consistent with protection of capital, by investing
primarily in high-grade municipal obligations maturing within twenty years or
less with a dollar-weighted average portfolio maturity under normal market
conditions of between three and ten years. To the extent consistent with the
Fund's primary objective, capital appreciation is a secondary objective.
The Ohio Insured Tax-Free Fund seeks the highest level of interest income
exempt from federal income tax and Ohio personal income tax, consistent with
protection of capital. The Fund invests primarily in high and medium-quality,
long-term Ohio municipal obligations which are protected by insurance
guaranteeing the payment of principal and interest in the event of a default.
The Tax-Free Intermediate Term Fund and the Ohio Insured Tax-Free Fund each
offer two classes of shares: Class A shares (sold subject to a maximum
front-end sales load of 2% for the Tax-Free Intermediate Term Fund and 4% for
the Ohio Insured Tax-Free Fund and a distribution fee of up to 0.25% of
average daily net assets of each Fund) and Class C shares (sold subject to a
maximum contingent deferred sales load of 1% if redeemed within a one-year
period from purchase and a distribution fee of up to 1% of average daily net
assets). Each Class A and Class C share of the Fund represents identical
interests in the Fund's investment portfolio and has the same rights, except
that (i) Class C shares bear the expenses of higher distribution fees, which
is expected to cause Class C shares to have a higher expense ratio and to pay
lower dividends than Class A shares; (ii) certain other class specific
expenses will be borne solely by the class to which such expenses are
attributable; and (iii) each class has exclusive voting rights with respect to
matters relating to its own distribution arrangements.
The Royal Palm Florida Tax-Free Money Fund offers two classes of shares: Class
A shares (Retail shares), sold subject to a distribution fee of up to 0.25% of
average daily net assets, and Class B shares (Institutional shares), sold
without a distribution fee. Each Retail and Institutional share of the Fund
represents identical interests in the Fund's investment portfolio and has the
same rights, except that (i) Retail shares bear the expenses of distribution
fees, which is expected to cause Retail shares to have a higher expense ratio
and to pay lower dividends than Institutional shares; (ii) certain other class
specific expenses will be borne solely by the class to which such expenses are
attributable; (iii) each class has exclusive voting rights with respect to
matters affecting only that class; and (iv) Retail shares are subject to a
lower minimum initial investment requirement and offer certain shareholder
services not available to Institutional shares such as checkwriting and
automatic investment and redemption plans.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
==============================================================================
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Trust's significant accounting policies:
Security valuation -- Ohio Tax-Free Money Fund, Tax-Free Money Fund,
California Tax-Free Money Fund and Royal Palm Florida Tax-Free Money Fund
securities are valued on the amortized cost basis, which approximates market.
This involves initially valuing a security at its original cost and thereafter
assuming a constant amortization to maturity of any discount or premium. This
method of valuation is expected to enable these Funds to maintain a constant
net asset value per share. Tax-Free Intermediate Term Fund and Ohio Insured
Tax-Free Fund securities are valued at market using an independent pricing
service which generally utilizes a computerized grid matrix of tax-exempt
securities and evaluations by its staff to determine what it believes is the
fair value of the securities. On limited occasions, if the valuation provided
by the pricing service ignores certain market conditions affecting the value
of a security or the pricing service cannot provide a valuation, the fair
value of the security will be determined in good faith consistent with
procedures established by the Board of Trustees.
Share valuation -- The net asset value per share of the Ohio Tax-Free Money
Fund, the Tax-Free Money Fund, the California Tax-Free Money Fund and the
Royal Palm Florida Tax-Free Money Fund is calculated daily by dividing the
total value of a Fund's assets, less liabilities, by its number of shares
outstanding. The offering price and redemption price per share is equal to the
net asset value per share.
The net asset value per share of each of the Tax-Free Intermediate Term Fund
and the Ohio Insured Tax-Free Fund is also calculated daily by dividing the
total value of a Fund's assets attributable to that class, less liabilities
attributable to that class, by the number of shares of that class outstanding.
The maximum offering price of Class A shares of the Tax-Free Intermediate Term
Fund is equal to net asset value per share plus a sales load equal to 2.04% of
the net asset value (or 2% of the offering price). The maximum offering price
of Class A shares of the Ohio Insured Tax-Free Fund is equal to net asset
value per share plus a sales load equal to 4.17% of the net asset value (or 4%
of the offering price). The offering price of Class C shares of each Fund is
equal to the net asset value per share.
The redemption price per share of Class A shares and Class C shares of the
Tax-Free Intermediate Term Fund and the Ohio Insured Tax-Free Fund is equal to
the net asset value per share. However, Class C shares of each Fund are
subject to a contingent deferred sales load of 1% of the original purchase
price if redeemed within a one-year period from the date of purchase.
Investment income -- Interest income is accrued as earned. Discounts and
premiums on securities purchased are amortized in accordance with income tax
regulations which approximate generally accepted accounting principles.
Distributions to shareholders -- Distributions from net investment income are
declared daily and paid on the last business day of each month. Net realized
short-term capital gains, if any, may be distributed throughout the year and
net realized long-term capital gains, if any, are distributed at least once
each year. Income distributions and capital gain distributions are determined
in accordance with income tax regulations.
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Allocations between classes -- Investment income earned by the Royal Palm
Florida Tax-Free Money Fund, the Tax-Free Intermediate Term Fund and the Ohio
Insured Tax-Free Fund is allocated daily to each class of shares based on the
percentage of the net asset value of settled shares of such class to the total
of the net asset value of settled shares of both classes of shares. Realized
capital gains and losses and unrealized appreciation and depreciation are
allocated daily to each class of shares based upon its proportionate share of
total net assets of the Fund. Class specific expenses are charged directly to
the class incurring the expense. Common expenses which are not attributable to
a specific class are allocated daily to each class of shares based upon its
proportionate share of total net assets of the Fund.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
==============================================================================
Federal income tax -- It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so
qualifies and distributes at least 90% of its taxable net income, the Fund
will be relieved of federal income tax on the income distributed. Accordingly,
no provision for income taxes has been made. In addition, each Fund intends to
satisfy conditions which enable it to designate the interest income generated
by its investment in municipal securities, which is exempt from federal income
tax when received by the Fund, as exempt-interest dividends upon distribution
to shareholders.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare as dividends
in each calendar year at least 98% of its net investment income (earned during
the calendar year) and 98% of its net realized capital gains (earned during
the twelve months ended October 31) plus undistributed amounts from prior
years.
The following information is based upon the federal income tax cost of
portfolio investments as of December 31, 1996:
- -------------------------------------------------------------------------------
TAX-FREE
INTERMEDIATE OHIO INSURED
TERM FUND TAX-FREE FUND
Gross unrealized appreciation.............. $ 2,450,192 $ 4,920,851
Gross unrealized depreciation.............. (39,182) (53,634)
-------------- ---------------
Net unrealized appreciation................ $ 2,411,010 $ 4,867,217
============== ===============
- -------------------------------------------------------------------------------
The tax basis of investments for each Fund is equal to the amortized cost as
shown on the Statements of Assets and Liabilities.
As of June 30, 1996, the Ohio Tax-Free Money Fund, the Tax-Free Money Fund,
the California Tax-Free Money Fund, the Royal Palm Florida Tax-Free Money
Fund, the Tax-Free Intermediate Term Fund and the Ohio Insured Tax-Free Fund
had capital loss carryforwards for federal income tax purposes of $709,
$1,338, $1,580, $1,198, $1,620,782 and $494, respectively, none of which
expire prior to June 30, 1999. These capital loss carryforwards may be
utilized in the current or future years to offset net realized capital gains
prior to distributing such gains to shareholders.
3. INVESTMENT TRANSACTIONS
For the six months ended December 31, 1996, purchases and proceeds from sales
and maturities of investment securities, excluding short-term investments,
amounted to $14,645,840 and $16,019,554, respectively, for the Tax-Free
Intermediate Term Fund and $18,463,254 and $15,066,358, respectively, for the
Ohio Insured Tax-Free Fund.
4. TRANSACTIONS WITH AFFILIATES
The President of the Trust is the controlling shareholder of Leshner
Financial, Inc. (Leshner), whose wholly-owned subsidiaries include Midwest
Group Financial Services, Inc. (the Adviser), the Trust's investment adviser
and principal underwriter, and MGF Service Corp. (MGF), the shareholder
servicing and transfer agent and accounting and pricing agent for the Trust.
Pursuant to an agreement dated December 10, 1996 between the shareholders of
Leshner and Countrywide Credit Industries, Inc. (CCI), CCI has agreed to
acquire all of the outstanding common stock of Leshner in exchange for newly
issued common stock of CCI. Following such acquisition, which is expected to
be consummated on or about February 28, 1997, Leshner will be a wholly-owned
subsidiary of CCI. CCI is a New York Stock Exchange listed company principally
engaged in residential mortgage lending.
MANAGEMENT AGREEMENT
Each Fund's investments are managed by the Adviser under the terms of a
Management Agreement. Under the Management Agreement, each Fund pays the
Adviser a fee, computed and accrued daily and paid monthly, at an annual rate
of 0.5% of its respective average daily net assets up to $100,000,000, 0.45%
of such net assets from $100,000,000 to $200,000,000, 0.4% of such net assets
from $200,000,000 to $300,000,000 and 0.375% of such net assets in excess of
$300,000,000.
In order to reduce the operating expenses of the Royal Palm Florida Tax-Free
Money Fund, the Adviser voluntarily waived advisory fees of $38,837 and
reimbursed the Fund for $11,507 of Class B expenses during the six months
ended December 31, 1996.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
==============================================================================
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer Agent and Shareholder Service Agreement
between the Trust and MGF, MGF maintains the records of each shareholder's
account, answers shareholders' inquiries concerning their accounts, processes
purchases and redemptions of each Fund's shares, acts as dividend and
distribution disbursing agent and performs other shareholder service
functions. For these services, MGF receives a monthly fee at an annual rate of
$25.00 per shareholder account from each of the Ohio Tax-Free Money Fund, the
Tax-Free Money Fund, the California Tax-Free Money Fund and the Royal Palm
Florida Tax-Free Money Fund and $21.00 per shareholder account from each of
the Tax-Free Intermediate Term Fund and the Ohio Insured Tax-Free Fund,
subject to a $1,000 minimum monthly fee for each Fund, or for each class of
shares of a Fund, as applicable. In addition, each Fund pays out-of-pocket
expenses including, but not limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement between the Trust and
MGF, MGF calculates the daily net asset value per share and maintains the
financial books and records of each Fund. For these services, MGF receives a
monthly fee, based on current asset levels, of $4,250 per month from each of
the Ohio Tax-Free Money Fund and the Royal Palm Florida Tax-Free Money Fund,
$3,250 per month from each of the Tax-Free Money Fund and the California
Tax-Free Money Fund and $4,750 per month from each of the Tax-Free
Intermediate Term Fund and the Ohio Insured Tax-Free Fund. In addition, each
Fund pays certain out-of-pocket expenses incurred by MGF in obtaining
valuations of such Fund's portfolio securities.
UNDERWRITING AGREEMENT
The Adviser is the Funds' principal underwriter and, as such, acts as
exclusive agent for distribution of the Funds' shares. Under the terms of the
Underwriting Agreement between the Trust and the Adviser, the Adviser and
affiliates earned $3,156 and $9,160 from underwriting and broker commissions
on the sale of shares of the Tax-Free Intermediate Term Fund and the Ohio
Insured Tax-Free Fund, respectively, during the six months ended December 31,
1996. In addition, the Adviser collected $2,685 and $1,240 of contingent
deferred sales loads on the redemption of Class C shares of the Tax-Free
Intermediate Term Fund and the Ohio Insured Tax-Free Fund, respectively.
PLANS OF DISTRIBUTION
The Trust has a Plan of Distribution (Class A Plan) under which shares of each
Fund having one class of shares and Class A shares of each Fund having two
classes of shares may directly incur or reimburse the Adviser for expenses
related to the distribution and promotion of shares. The annual limitation for
payment of such expenses under the Class A Plan is 0.25% of average daily net
assets attributable to such shares.
The Trust also has a Plan of Distribution (Class C Plan) under which Class C
shares of the Tax-Free Intermediate Term Fund and the Ohio Insured Tax-Free
Fund may directly incur or reimburse the Adviser for expenses related to the
distribution and promotion of shares. The annual limitation for payment of
such expenses under the Class C Plan is 1% of average daily net assets
attributable to Class C shares.
CUSTODIAN AGREEMENTS
The Fifth Third Bank, which serves as the custodian for each Fund except for
the Royal Palm Florida Tax-Free Money Fund, was a significant shareholder of
record of the Ohio Tax-Free Money Fund as of December 31, 1996. Under the
terms of its Custodian Agreement, The Fifth Third Bank receives from each such
Fund an asset-based fee plus transaction charges for each security transaction
entered into by the Funds. Huntington Trust Company, N.A. (Huntington), which
serves as the custodian for the Royal Palm Florida Tax-Free Money Fund, was a
significant shareholder of record of such Fund as of December 31, 1996. Under
the terms of its Custodian Agreement, Huntington receives from the Fund an
asset-based fee.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
==============================================================================
5. CAPITAL SHARE TRANSACTIONS
Proceeds and payments on capital shares as shown in the Statements of Changes
in Net Assets are the result of the following capital share transactions for
the periods ended December 31, 1996 and June 30, 1996:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
TAX-FREE INTERMEDIATE OHIO INSURED
TERM FUND TAX-FREE FUND
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
DEC. 31, 1996 JUNE 30, DEC. 31, 1996 JUNE 30,
(UNAUDITED) 1996 (UNAUDITED) 1996
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold.................................... 626,071 1,417,723 6,549,516 12,319,913
Shares issued in reinvestment of
distributions to shareholders............... 108,690 244,633 118,809 232,739
Shares redeemed................................ (1,124,942) (2,894,267) (7,009,201) (12,159,274)
------------ -------------- ------------- --------------
Net increase (decrease) in shares outstanding.. (390,181) (1,231,911) (340,876) 393,378
Shares outstanding, beginning of period........ 6,238,847 7,470,758 6,345,325 5,951,947
------------ -------------- ------------- --------------
Shares outstanding, end of period.............. 5,848,666 6,238,847 6,004,449 6,345,325
============ ============== ============= ==============
CLASS C
Shares sold.................................... 89,384 292,369 47,074 99,911
Shares issued in reinvestment of
distributions to shareholders............... 9,234 17,558 6,228 14,227
Shares redeemed................................ (107,220) (270,313) (52,596) (129,418)
------------ -------------- ------------- --------------
Net increase (decrease) in shares outstanding.. (8,602) 39,614 706 (15,280)
Shares outstanding, beginning of period........ 482,869 443,255 331,937 347,217
------------ -------------- ------------- --------------
Shares outstanding, end of period.............. 474,267 482,869 332,643 331,937
============ ============== ============= ==============
</TABLE>
Capital share transactions for the Ohio Tax-Free Money Fund, the Tax-Free
Money Fund, the California Tax-Free Money Fund and the Royal Palm Florida
Tax-Free Money Fund are identical to the dollar value of those transactions as
shown in the Statements of Changes in Net Assets.
6. PORTFOLIO COMPOSITION
As of December 31, 1996, the Ohio Tax-Free Money Fund and the Ohio Insured
Tax-Free Fund were invested exclusively in debt obligations issued by the
State of Ohio and its political subdivisions, agencies, authorities and
instrumentalities and by other issuers the interest from which is exempt from
Ohio personal income tax. The California Tax-Free Money Fund was invested in
debt obligations issued by the State of California and its political
subdivisions, agencies, authorities and instrumentalities and by other issuers
the interest from which is exempt from California income tax. The Royal Palm
Florida Tax-Free Money Fund was invested exclusively in debt obligations
issued by the State of Florida and its political subdivisions, agencies,
authorities and instrumentalities and by other issuers the value of which is
exempt from the Florida intangible personal property tax. As of December 31,
1996, 10.6% of the portfolio securities of the Tax-Free Money Fund were
concentrated in the State of Ohio and 10.3% in the State of Illinois. For
information regarding portfolio composition by state for the Tax-Free
Intermediate Term Fund as of December 31, 1996, see the Fund's Portfolio of
Investments.
As diversified Funds registered under the 1940 Act, it is the policy of the
Tax-Free Money Fund and the Tax-Free Intermediate Term Fund that not more than
25% of the total assets of each such Fund be invested in securities of issuers
which individually comprise more than 5% of its total assets.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
==============================================================================
The Ohio Tax-Free Money Fund, the Tax-Free Money Fund, the California Tax-Free
Money Fund and the Royal Palm Florida Tax-Free Money Fund each invest in
municipal securities maturing in 13 months or less and having a short-term
rating in one of the top two ratings categories by at least two nationally
recognized statistical rating agencies (or by one such agency if a security is
rated by only that agency) or, if unrated, are determined by the Adviser,
under the supervision of the Board of Trustees, to be of comparable quality.
As of December 31, 1996, 43.1% of the Tax-Free Intermediate Term Fund's
portfolio securities were rated AAA/Aaa [using the higher of Standard & Poor's
Corporation (S&P) or Moody's Investors Service, Inc. (Moody's) ratings], 34.6%
were rated AA/Aa, 19.3% were rated A/A and 3.0% were not rated.
As of December 31, 1996, 96.3% of the Ohio Insured Tax-Free Fund's long-term
portfolio securities were either (1) insured by an insurance policy obtained
from a recognized insurer which carries a rating of AAA by S&P or Aaa by
Moody's, (2) guaranteed as to the payment of interest and principal by an
agency or instrumentality of the U.S. Government, or (3) secured as to the
payment of interest and principal by an escrow account consisting of
obligations of the U.S. Government. Three private insurers individually insure
more than 10% of the Ohio Insured Tax-Free Fund's portfolio securities and
collectively insure 76.5% of its portfolio securities.
The concentration of investments for each Fund as of December 31, 1996,
classified by revenue source, was as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
ROYAL PALM
OHIO CALIFORNIA FLORIDA TAX-FREE OHIO
TAX-FREE TAX-FREE TAX-FREE TAX-FREE INTERMEDIATE INSURED
MONEY MONEY MONEY MONEY TERM TAX-FREE
FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
General Obligations................. 24.8% 24.6% 9.5% 5.0% 20.5% 41.6%
Revenue Bonds:
Industrial Development/Pollution
Control 30.6% 30.3% 26.8% 20.5% 6.9% 6.3%
Hospital/Health Care.............. 27.1% 8.1% 1.9% 35.9% 12.2% 19.2%
Housing/Mortgage.................. 3.1% 13.6% 7.8% 14.8% 11.9% 5.6%
Utilities......................... 0.6% 1.6% 20.0% 7.0% 8.1% 13.7%
Education......................... 2.4% 4.2% 5.8% 8.2% 20.3% 5.3%
Transportation.................... -- 7.4% 14.8% 3.9% 6.2% 3.5%
Public Facilities................. 3.4% -- 3.1% 1.2% 4.8% 3.5%
Economic Development.............. 5.1% 4.2% -- -- 2.2% --
Leases............................ -- -- 6.0% -- 2.4% 0.7%
Special Tax....................... -- 2.6% 0.5% 0.5% 3.1% --
Miscellaneous..................... 2.9% 3.4% 3.8% 3.0% 1.4% 0.6%
----------------------- ----------- ------------ ----------- ------------
Total .............................. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
=========== ============ =========== ============ =========== ===========
See each Fund's Portfolio of Investments for additional information on
portfolio composition.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OHIO TAX-FREE MONEY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1996 (Unaudited)
==============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 25.9% RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,900,000 Erie Co., OH, Hosp. Impt. Rev. (Firelands Comm. Hosp.),
Prerefunded @ 101 8.875% 01/01/1997 $ 1,919,000
675,000 Worthington, OH, CSD School Impt. GO BANS................... 3.750 01/17/1997 675,043
500,000 Marysville, OH (Water Storage Tank Proj.) GO BANS........... 3.880 01/31/1997 500,111
2,000,000 Toledo, OH, CSD Energy Conserv. GO BANS.................... 4.000 01/31/1997 2,000,794
1,950,000 Marion Co., OH, GO BANS..................................... 3.600 02/13/1997 1,950,553
700,000 Ottawa Co., OH (Port Auth. Fac. Proj.) GO BANS.............. 3.550 02/27/1997 700,263
2,000,000 East Palestine, OH, CSD GO BANS............................. 3.500 02/28/1997 2,000,305
1,800,000 Brooklyn, OH, GO BANS, Ser 1................................ 4.100 03/05/1997 1,801,230
1,550,000 Salem, OH, CSD GO BANS...................................... 3.490 03/06/1997 1,550,183
932,000 Huron, OH, GO BANS.......................................... 3.860 03/19/1997 932,492
800,000 Marysville, OH, GO BANS..................................... 3.960 03/21/1997 800,433
3,185,700 Greene Co., OH, GO.......................................... 4.000 03/26/1997 3,187,817
950,000 Geneva on the Lake, OH, GO BANS............................. 4.100 04/03/1997 950,692
2,300,000 Ottawa Co., OH, GO BANS..................................... 3.980 04/09/1997 2,301,366
1,000,000 Trumbull Co., OH, Correctional Fac. GO BANS................. 4.070 04/10/1997 1,000,705
1,250,000 Miami Valley Regional Transit Authority, OH, GO BANS........ 4.750 04/15/1997 1,254,162
1,000,000 Ashland, OH, CSD Energy Conserv. GO......................... 4.150 04/15/1997 1,000,828
1,500,000 Conneaut, OH, Water Treatment Impt. GO BANS................. 4.500 04/15/1997 1,501,655
1,900,000 Brooklyn, OH, GO BANS....................................... 4.400 05/06/1997 1,903,459
3,239,200 Hamilton, OH, GO BANS....................................... 4.000 05/09/1997 3,239,710
2,300,000 Oregon, OH, GO BANS......................................... 4.050 05/29/1997 2,302,052
1,000,000 Cleveland, OH, CSD RANS..................................... 4.500 06/01/1997 1,003,013
1,160,000 Toledo, OH, City Services Special Assessment Notes.......... 4.500 06/02/1997 1,162,324
3,000,000 Greene Co., OH, GO.......................................... 3.880 06/04/1997 3,001,949
3,500,000 Claymont, OH, CSD GO BANS................................... 4.000 06/04/1997 3,500,709
1,040,000 Brook Park, OH, GO BANS..................................... 4.050 06/06/1997 1,041,155
2,000,000 Hudson, OH, Waterworks Impt. GO BANS........................ 4.000 06/11/1997 2,002,294
2,000,000 Plain Township, OH, Fire Station Const. & Impt. GO BANS..... 4.300 06/12/1997 2,002,587
2,000,000 Forest Hills, OH, LSD GO BANS............................... 4.210 06/17/1997 2,005,942
1,150,000 Bexley City, OH, Street Impt. GO BANS....................... 4.250 06/26/1997 1,152,270
2,500,000 Mansfield, OH, CSD GO TANS.................................. 4.500 06/27/1997 2,505,239
1,000,000 Madeira, OH, LSD GO TANS.................................... 4.220 07/17/1997 1,003,283
1,400,000 Powell Village, OH, Road Impt. GO BANS...................... 4.250 07/22/1997 1,401,116
180,000 Powell Village, OH, Street Impt. GO BANS.................... 4.440 07/22/1997 180,325
2,203,000 Orange CSD, OH, Energy Conserv. GO BANS..................... 4.100 07/22/1997 2,204,170
2,000,000 Parma, OH, CSD GO BANS...................................... 4.700 07/31/1997 2,006,673
1,205,000 Shelby, OH, GO BANS, Ser 96................................. 4.300 08/21/1997 1,206,854
600,000 Marysville, OH, Street Impt. GO BANS........................ 4.270 08/28/1997 601,019
940,000 Pepper Pike, OH, Water Impt. GO BANS........................ 4.500 09/19/1997 943,226
1,250,000 Lake Co., OH, GO BANS....................................... 4.150 10/09/1997 1,251,386
1,400,000 Gates Mills Village, OH, Waterworks Impt. GO BANS........... 4.125 10/16/1997 1,402,386
1,050,000 Obetz Village, OH, GO BANS.................................. 4.370 10/23/1997 1,052,198
925,000 Vermillion, OH, Sewer System GO BANS........................ 4.150 10/31/1997 925,737
1,400,000 Bryan, OH, Hydro Electric Dam GO BANS....................... 4.100 11/12/1997 1,402,319
3,000,000 Hamilton, OH, Real Estate Acquisition Rev................... 4.700 11/20/1997 3,007,608
950,000 Marysville, OH, GO BANS..................................... 4.070 12/15/1997 952,285
- -------------- -----------
$ 72,284,900 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- -------------- (Amortized Cost $72,390,920)................................ $72,390,920
-----------
<PAGE>
<CAPTION>
OHIO TAX-FREE MONEY FUND (Continued)
==============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FLOATING AND VARIABLE RATE DEMAND NOTES-- 60.5% RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 340,000 Montgomery Co., OH, IDR (Kindercare)........................ 4.550% 01/01/1997 $ 340,000
2,900,000 Muskingum Co., OH, IDR (Elder-Beerman)...................... 3.950 01/01/1997 2,900,000
1,750,000 Cuyahoga Co., OH, Health Care Fac. Rev., Ser. 1993B
(Hospice of the Western Reserve)............................ 4.250 01/01/1997 1,750,000
2,340,000 Defiance Co., OH, IDR (Isaac Property Proj.)................ 4.250 01/01/1997 2,340,000
210,000 Franklin Co., OH, IDR (Boa Ltd. Proj.)...................... 3.650 01/01/1997 210,000
1,100,000 Franklin Co., OH, IDR (Capitol South)....................... 3.600 01/01/1997 1,100,000
8,000,000 Clermont Co., OH, Hosp. Fac. Rev., Ser.
B (Mercy Health Sys.)....................................... 4.200 01/01/1997 8,000,000
1,300,000 Franklin Co., OH, IDR (Jacobsen Stores)..................... 3.650 01/01/1997 1,300,000
1,600,000 Delaware Co., OH, IDR (Radiation Sterilizers, Inc.)......... 3.600 01/01/1997 1,600,000
4,195,000 Cuyahoga Co., OH, IDR (S & R Playhouse Realty).............. 3.750 01/01/1997 4,195,000
980,000 Centerville, OH, Health Care Rev. (Bethany Lutheran)........ 4.100 01/01/1997 980,000
1,250,000 Cuyahoga Co., OH, Health Care Fac. Rev.
(Benjamin Rose Inst.)....................................... 4.300 01/01/1997 1,250,000
1,700,000 Cleveland-Cuyahoga Co., OH, Port. Auth. Rev.
(Rock & Roll Halll of Fame)................................. 4.250 01/01/1997 1,700,000
500,000 Ohio St. Environ. Impt. Rev. (U.S. Steel Corp.)............. 3.850 01/01/1997 500,000
1,000,000 Butler Co., OH, IDR (Phillip Morris Co.).................... 4.150 01/01/1997 1,000,000
850,000 Hardin Co., OH, Hosp. Impt. Rev., Ser. A
(Hardin Memorial Hosp.)..................................... 4.300 01/01/1997 850,000
960,000 Cuyahoga Co., OH, Health Care Fac. Rev., Ser. 1993A
(Hospice of the Western Reserve)............................ 4.250 01/01/1997 960,000
100,000 Cuyahoga Co., OH, IDR (Schottenstein Stores)................ 4.250 01/01/1997 100,000
2,000,000 Cuyahoga Co., OH, IDR, Ser. 1989 (Motch Corp. Proj.)........ 4.700 01/01/1997 2,000,000
300,000 Medina, OH, IDR (Kindercare)................................ 4.550 01/01/1997 300,000
375,000 Hudson Village, OH, IDR, Ser. A (Kindercare)................ 4.550 01/01/1997 375,000
2,390,000 Erie Co., OH, IDR (Toft Dairy, Inc.)........................ 4.250 01/01/1997 2,390,000
330,000 Franklin Co., OH, IDR (Columbus Dist.)...................... 4.300 01/01/1997 330,000
1,070,000 Huron Co., OH, Rev. (Norwalk Furniture Corp.)............... 4.250 01/01/1997 1,070,000
1,505,000 Greene Co., OH, Health Care Fac. Rev. (Green Oaks Proj.).... 4.250 01/01/1997 1,505,000
287,000 Middletown, OH, IDR, Ser. A (Kindercare).................... 4.550 01/01/1997 287,000
935,000 Lucas Co., OH, IDR, Ser. D (Kindercare)..................... 4.550 01/01/1997 935,000
564,000 Franklin Co., OH, IDR, Ser. D (Kindercare).................. 4.550 01/01/1997 564,000
1,100,000 Delaware Co., OH, IDR, Ser. 1985 (MRG Ltd. Proj.)........... 4.350 01/01/1997 1,100,000
1,000,000 Lucas Co., OH, EDR (Glendale Meadows)....................... 4.250 01/01/1997 1,000,000
494,000 Lorain Co., OH, IDR, Ser. C (Kindercare).................... 4.550 01/01/1997 494,000
1,100,000 Meigs Co., OH, IDR, Ser. 1985 (MRG Ltd. Proj.).............. 4.350 01/01/1997 1,100,000
970,000 Cuyahoga Co., OH, IDR (Pleasant Lake Assoc.)................ 4.250 01/01/1997 970,000
2,000,000 Montgomery Co., OH, EDR (Dayton Art Institute).............. 4.250 01/01/1997 2,000,000
200,000 Stark Co., OH, IDR, Ser. D (Kindercare)..................... 4.550 01/01/1997 200,000
1,000,000 Morrow Co., OH, IDR (Field Container Corp.)................. 4.200 01/01/1997 1,000,000
200,000 Ohio St. Water Dev. Auth. Rev. (Timken Co. Proj.)........... 4.100 01/01/1997 200,000
800,000 Orrville, OH, Hosp. Fac. Rev., Ser. 1990 (Orrville Hosp.)... 4.250 01/01/1997 800,000
805,000 Montgomery Co., OH, Health Care Rev., Ser. A
(Dayton Area MRI Consortium)................................ 4.250 01/01/1997 805,000
2,530,000 Summit Co., OH, IDR (Bowery Assoc.)......................... 4.200 01/01/1997 2,530,000
375,000 Wadsworth, OH, IDR (Kindercare)............................. 4.550 01/01/1997 375,000
1,100,000 Wyandot Co., OH, IDR, Ser. 1985 (MRG Ltd. Proj.)............ 4.350 01/01/1997 1,100,000
2,300,000 Cincinnati-Hamilton Co., OH, Port Auth. Rev.
(Kenwood Office Assoc. Proj.)............................... 5.100 01/02/1997 2,300,000
8,100,000 Cuyahoga Co., OH, Hosp. Impt. Rev. (Univ. Hosp. Cleveland).. 5.000 01/02/1997 8,100,000
5,500,000 Ohio St. Air Quality Dev. Auth. Rev., Ser. 1985B
(Cincinnati Gas & Elec.).................................... 4.700 01/02/1997 5,500,000
2,400,000 Franklin Co., OH, Health Sys. Rev.
(St. Anthony Medical Ctr.).................................. 4.850 01/02/1997 2,400,000
5,000,000 Hamilton Co., OH, Health Sys. Rev. (Franciscan Sisters)..... 5.000 01/02/1997 5,000,000
4,900,000 Ohio St. Air Quality Dev. Auth. Rev., Ser. 1995A............ 4.700 01/02/1997 4,900,000
3,000,000 Lima, OH, Hosp. Fac. Ref. & Impt. Rev., Ser. 96
(Lima Memorial Hosp.)....................................... 4.300 01/02/1997 3,000,000
1,605,000 Village of Andover, OH, Health Care Rev., Ser. 96
(D&M Realty Proj.).......................................... 4.200 01/02/1997 1,605,000
4,000,000 Montgomery Co., OH, Ltd. Obligation Rev., Ser. 96
(St. Vincent de Paul Proj.)................................. 4.250 01/02/1997 4,000,000
1,210,000 Franklin Co., OH, IDR (Ohio Girl Scouts).................... 4.200 01/02/1997 1,210,000
<PAGE>
<CAPTION>
OHIO TAX-FREE MONEY FUND (Continued)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FLOATING AND VARIABLE RATE DEMAND NOTES-- 60.5% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 8,000,000 Franklin Co., OH, IDR (Berwick Steel)....................... 4.250% 01/02/1997 $ 8,000,000
4,800,000 Ohio St. Higher Educ. Fac. Rev. (Pooled Financing).......... 4.200 01/02/1997 4,800,000
475,000 Akron, Bath & Copley, OH, Joint Twp. Hosp. Rev.
(Visiting Nurse Svcs. Proj.)................................ 4.300 01/02/1997 475,000
1,625,000 Ashland, OH, IDR (Landover Properties)...................... 4.150 01/02/1997 1,625,000
4,060,000 Ashtabula Co., OH Hosp. Fac. Rev., Ser. 95
(Ashtabula Co. Med. Ctr. Proj............................... 4.200 01/02/1997 4,060,000
1,900,000 Clinton Co., OH, Hosp. Rev. (Clinton Memorial).............. 4.300 01/02/1997 1,900,000
4,640,000 Trumbull Co., OH, Hosp. Rev. (Shepherd Valley Lutheran)..... 4.200 01/02/1997 4,640,000
6,360,000 Franklin Co., OH, Hosp. Fac. & Impt. Rev.
(U.S. Health Corp. of Columbus)............................. 4.150 01/02/1997 6,360,000
2,000,000 Franklin Co., OH, IDR (Alco Standard Corp.)................. 4.350 01/02/1997 2,000,000
2,720,000 Toledo, OH, City Services Special Assessment Notes.......... 4.150 01/02/1997 2,720,000
1,600,000 Warren Co., OH, IDR (Liquid Container)...................... 4.100 01/02/1997 1,600,000
2,650,000 Westlake, OH, IDR (Nordson Co.)............................. 4.200 01/02/1997 2,650,000
1,745,000 Mahoning Co., OH, Health Care Fac. Rev.
(Ohio Heart Institute)...................................... 4.200 01/02/1997 1,745,000
2,000,000 Lucas Co., OH, IDR (Ohio Citizens Bank Proj.)............... 4.300 01/02/1997 2,000,000
2,045,000 Mahoning Co., OH, Health Care Fac. Rev. (Copeland Oaks)..... 4.200 01/02/1997 2,045,000
485,000 Lucas Co., OH, IDR (Associates Proj.)....................... 4.300 01/02/1997 485,000
400,000 Lucas Co., OH, Rev. (Sunshine Children's Home).............. 4.300 01/02/1997 400,000
750,000 Marion Co., OH, Hosp. Impt. Rev. (Pooled Lease Proj.)....... 4.200 01/02/1997 750,000
4,800,000 Ohio EDR, Ser. 1983 (Court St. Ctr. Assoc. Ltd. Proj.)...... 4.100 01/02/1997 4,800,000
1,540,000 Marion Co., OH, Hosp. Impt. Rev. (Pooled Lease Proj.)....... 4.200 01/02/1997 1,540,000
1,275,000 Marion Co., OH, Hosp. Impt. Rev. (Pooled Lease Proj.)....... 4.200 01/02/1997 1,275,000
640,000 Summit Co., OH, IDR (Go-Jo Indust.)......................... 4.200 01/02/1997 640,000
400,000 Franklin Co., OH, IDR (Columbus College).................... 4.200 01/02/1997 400,000
1,480,000 Toledo, OH, City Services Special Assessment Notes.......... 4.150 01/02/1997 1,480,000
1,150,000 Hamilton Co., OH, EDR, Ser. 1995 (Cincinnati Assoc.
Performing Arts)............................................ 4.200 01/02/1997 1,150,000
1,140,000 Pike Co., OH, EDR (Pleasant Hill)........................... 4.200 01/02/1997 1,140,000
1,000,000 Rickenbacker, OH, Port. Auth. Rev.
(Rickenbacker Holdings, Inc.)............................... 4.200 01/02/1997 1,000,000
3,920,000 Montgomery Co., OH, Health Care Rev.
(Comm. Blood Ctr. Proj.).................................... 4.200 01/02/1997 3,920,000
2,435,000 Toledo-Lucas Co., OH, Port. Auth. Rev., Ser. 1994
(Countrymark Coop Proj.).................................... 4.300 01/02/1997 2,435,000
2,050,000 Ashland Co., OH, Hosp. Fac. Rev., Ser. 1989 (Good Shepherd). 4.500 01/03/1997 2,050,000
800,000 Ohio St. Higher Educ. Fac. Rev. (John Carroll Univ.)........ 4.125 01/06/1996 800,000
4,250,000 Cincinnati-Hamilton Co., OH, Port. Auth. Rev.
(Kaiser Agric. Chemical Co.)................................ 3.150 01/07/1997 4,250,000
1,400,000 Hamilton Co., OH, IDR (ADP System).......................... 3.700 01/15/1997 1,400,000
- -------------- -----------
$169,055,000 TOTAL FLOATING AND VARIABLE RATE DEMAND NOTES
- -------------- (Amortized Cost $169,055,000)............................... $169,055,000
------------
<CAPTION>
==============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT ADJUSTABLE RATE PUT BONDS-- 11.4% RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 275,000 Middletown, OH, IDR (Continental
Commercial Properties Proj.)................................ 3.850% 02/01/1997 $ 275,000
1,360,000 Hamilton, OH, IDR (Continental Commercial Properties Proj.). 3.850 02/01/1997 1,360,000
931,155 Citizens Federal Tax-Exempt Mtg. Bond Trust................. 4.150 03/01/1997 931,155
660,000 Riverside, OH, EDR (Riverside Assoc. Ltd. Proj.)............ 3.800 03/01/1997 660,000
4,740,000 Cuyahoga Co., OH, IDR (Halle Office Bldg.).................. 4.190 04/01/1997 4,740,000
175,000 Franklin Co., OH, IDR (Pan Western Life).................... 3.850 04/01/1997 175,000
650,000 Franklin Co., OH, IDR (GSW Proj.)........................... 3.700 05/01/1997 650,000
3,215,000 Ohio HFA MFH (Lincoln Park)................................. 4.250 05/01/1997 3,215,000
3,835,000 Richland Co., OH, IDR (Mansfield Sq. Proj.)................. 3.700 05/15/1997 3,835,000
935,000 Scioto Co., OH, Health Care Rev. (Hillview Retirement)...... 3.650 06/01/1997 935,000
570,000 Cuyahoga Co., OH, IDR (Welded Ring)......................... 3.650 06/01/1997 570,000
2,355,000 Franklin Co., OH, IDR (Leveque & Assoc. Proj.).............. 3.650 06/01/1997 2,355,000
320,000 Lucas Co., OH, EDR (Cross County Inns, Inc.)................ 3.750 06/01/1997 320,000
825,000 Cuyahoga Co., OH, Health Care Rev. (Cleveland Neighborhood). 3.900 06/01/1997 825,000
1,060,000 Gallia Co., OH, IDR (Jackson Pike Assoc.)................... 3.600 06/15/1997 1,060,000
3,045,000 Ohio Company Tax-Exempt Mtg. Bond Trust, Ser. 2............. 3.900 06/15/1997 3,044,203
<PAGE>
<CAPTION>
OHIO TAX-FREE MONEY FUND (Continued)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT ADJUSTABLE RATE PUT BONDS-- 11.4% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 740,000 Franklin Co., OH, EDR (JAL Realty).......................... 3.900% 07/15/1997 $ 740,000
2,500,000 Ohio St. Air Quality Dev. Auth. Rev.,
Ser. A (Duquesne Light)..................................... 3.950 07/16/1997 2,500,000
2,545,000 Perry Co., OH, Nursing Fac. Rev., Ser. 96
(New Lexington Health Corp. Proj.).......................... 4.000 09/01/1997 2,545,000
1,255,000 Miami Valley Tax-Exempt Mtg. Bond Trust..................... 4.880 10/15/1997 1,255,000
- -------------- -----------
$ 31,991,155 TOTAL ADJUSTABLE RATE PUT BONDS
- -------------- (Amortized Cost $31,990,358)................................ $31,990,358
------------
<CAPTION>
================================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT COMMERCIAL PAPER-- 0.5% RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1,500,000 Ohio St. Air Quality Dev. Auth.
--------------(Cleveland Elec. Illum. Co.) 3.600% 01/15/1997 $ 1,500,000
-----------
$1,500,000 TOTAL COMMERCIAL PAPER
- -------------- (Amortized Cost $1,500,000)................................. $ 1,500,000
-----------
$274,831,055 TOTAL INVESTMENTS AT VALUE -- 98.3%
============== (Amortized Cost $274,936,278)............................... $274,936,278
OTHER ASSETS IN EXCESS OF LIABILITIES-- 1.7% ............... 4,750,807
------------
NET ASSETS-- 100.0% ........................................ $279,687,085
============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TAX-FREE MONEY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1996 (Unaudited)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 36.0% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 250,000 Broward Co., FL, GO, Ser. C................................. 5.000% 01/01/1997 $ 250,000
500,000 Hammond, IN, Multi-School Bldg. Corp. RANS.................. 5.500 01/31/1997 500,000
655,000 Lake Co., IL, Community School Dist. #60 GO................. 3.500 02/01/1997 655,000
500,000 Dallas, TX, GO, Prerefunded @ 101.50........................ 6.875 02/15/1997 509,270
250,000 Dallas, TX, GO.............................................. 5.000 02/15/1997 250,359
900,000 Wisconsin St. Health & Educ. Facs. Auth. Rev.
(Franciscan Sisters)........................................ 4.200 02/15/1997 900,214
850,000 Richland Co., SC, School Dist. #2 GO, Ser. B................ 4.750 03/01/1997 851,469
1,400,000 Mercer Co., NJ, Impt. Auth. Solid Waste Proj.
GO, Ser. 1996B.............................................. 3.750 03/31/1997 1,400,000
200,000 Texas National Guard Armory Rev............................. 6.200 04/01/1997 203,239
500,000 Bayonne, NJ, GO BANS........................................ 3.850 04/11/1997 500,475
525,000 Ross Co., OH, Airport Impt. GO BANS ........................ 4.540 04/25/1997 525,456
200,000 Chippewa Valley, MI, School Dist. GO........................ 5.750 05/01/1997 201,299
295,000 Pickens Co., SC, School Dist. GO, Ser. D.................... 5.000 05/01/1997 296,240
285,000 Pickens Co., SC, School Dist. GO, Ser. E.................... 5.000 05/01/1997 286,198
225,000 Univ. of Kentucky, KY, Univ. Rev., Prerefunded @ 102........ 6.800 05/01/1997 231,671
250,000 Columbus, OH, GO, Ser. 1.................................... 5.500 05/15/1997 251,445
245,000 Berwyn, IL, Hosp. Rev. (MacNeal Memorial Hosp.),
Prerefunded @100............................................ 6.250 06/01/1997 247,321
200,000 Grand River, OK, Dam Auth. Rev., Prerefunded @ 102.......... 6.450 06/01/1997 205,818
100,000 Grand River, OK, Dam Auth. Rev., Prerefunded @ 102.......... 6.800 06/01/1997 103,122
300,000 Grand River, OK, Dam Auth. Rev., Prerefunded @ 102.......... 7.000 06/01/1997 309,975
350,000 Massachusetts St. GO, Ser. A................................ 7.875 06/01/1997 356,095
160,000 Mid-Prairie, IA, Comm. School Dist. GO...................... 6.750 06/01/1997 161,812
250,000 Illinois St. Sales Tax Rev., Ser. 1987D, Prerefunded @ 102.. 7.300 06/15/1997 258,963
600,000 Vermont St. Student Assistance Corp. Educ.
Loan Rev., Ser. A........................................... 6.125 06/15/1997 606,461
515,000 Loveland, OH, GO BANS....................................... 4.250 06/27/1997 515,000
185,000 Philadelphia, PA, School Dist. GO, Ser. A................... 4.300 07/01/1997 185,264
220,000 Arizona St. Muni. Financing Prog. COP, Ser. 16,
Escrowed to Maturity........................................ 8.000 08/01/1997 225,032
420,000 Missouri St. Health & Educ. Facs. Rev. (William
Jewell College)............................................. 4.000 08/01/1997 420,580
415,000 New York, NY, GO, Prerefunded @ 102......................... 8.000 08/01/1997 433,423
225,000 San Juan Co., NM, Jr. College Dist. Rev.,
Escrowed to Maturity........................................ 6.600 08/01/1997 228,185
235,000 Hudson Co., NJ, Vocational School GO, Ser. B................ 5.050 10/01/1997 236,987
500,000 Shawano-Gresham, WI, School Dist. GO BANS................... 4.100 10/01/1997 500,340
500,000 Hamilton, OH, Real Estate Acquisition Rev................... 4.700 11/20/1997 501,268
- -------------- ------------
$13,205,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- -------------- (Amortized Cost $13,307,981)................................ $13,307,981
------------
<CAPTION>
==============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FLOATING AND VARIABLE RATE DEMAND NOTES-- 45.6% RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------
$ 900,000 Eddyville, IA, IDR (Heartland Lysine, Inc.)................. 4.550% 01/01/1997 $ 900,000
1,000,000 New Jersey EDA & EDR (Union Avenue Assoc.).................. 3.800 01/01/1997 1,000,000
700,000 Baltimore, MD, IDR (Wicomico Indust. Center Fac.)........... 3.700 01/02/1997 700,000
825,000 Brooklyn Park, MN, IDR (Schmidt Proj.)...................... 4.350 01/02/1997 825,000
1,000,000 District of Columbia MFH, Tyler House Trust COP, Ser. 1995A. 4.350 01/02/1997 1,000,000
380,000 Frankfort, MN, IDR, Ser. 1995 (J&B, Inc.)................... 4.650 01/02/1997 380,000
550,000 Frankfort, MN, IDR, Ser. 1995 (J&B, Inc.)................... 4.450 01/02/1997 550,000
900,000 Harris Co., TX, Health Facs. Dev. Hosp. Rev., Ser. D
(St. Luke's Episcopal)...................................... 5.000 01/02/1997 900,000
2,735,000 Illinois St. Dev. Fin. Auth. MFH Rev.
(Cobbler Square Proj.)...................................... 4.650 01/02/1997 2,735,000
2,400,000 Nashville, TN, Metro. Airport Auth. Rev..................... 4.950 01/02/1997 2,400,000
1,000,000 Orange Co., CA, Impt. Rev. (Irvine Coast)................... 4.850 01/02/1997 1,000,000
600,000 Pinal Co., AZ, IDA PCR (Magma Copper Co.)................... 5.000 01/02/1997 600,000
1,850,000 Port St. Helens, OR, PCR (Portland General Elec.)........... 5.250 01/02/1997 1,850,000
<PAGE>
<CAPTION>
TAX-FREE MONEY FUND (Continued)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FLOATING AND VARIABLE RATE DEMAND NOTES-- 45.6% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 980,000 Redwood Falls, MN, IDR (Zytec Corp. Proj.).................. 4.800% 01/02/1997 $ 980,000
400,000 St. Cloud, MN, Hsg. & Redev. Auth. (Coborn Realty Co.)...... 4.350 01/02/1997 400,000
600,000 Sweetwater Co., WY, PCR (Pacificorp. Proj. B)............... 4.700 01/02/1997 600,000
- -------------- ------------
$16,820,000 TOTAL FLOATING AND VARIABLE RATE DEMAND NOTES
- -------------- (Amortized Cost $16,820,000)................................ $16,820,000
------------
<CAPTION>
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT ADJUSTABLE RATE PUT BONDS-- 18.6% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 325,000 Broomfield, CO, Rev., Ser. 1992 (Up With People Proj.)...... 4.000% 01/15/1997 $ 325,000
880,000 Buckeye Tax-Exempt Mtg. Bond Trust.......................... 4.500 02/01/1997 878,481
550,000 Milwaukee, WI, IDR (Wayne C. Oldenburg Proj.)............... 3.950 02/01/1997 550,000
330,000\ Lansing, MI, EDR (LGH Office Bldg. Proj.)................... 3.900 02/15/1997 330,000
148,845 Citizens Federal Tax-Exempt Mtg. Bond Trust................. 4.150 03/01/1997 148,845
1,200,000 Owensboro, KY, IDR, Ser. 1985 (Dart Container).............. 3.600 03/01/1997 1,200,000
160,000 Cuyahoga Co., OH, IDR (Halle Office Bldg.).................. 4.190 04/01/1997 160,000
110,000 Kansas City, KS, IDR (Lady Baltimore Foods)................. 4.625 04/01/1997 110,000
430,000 Romulus, MI, Econ. Dev. Corp. (Airport Realty Proj.)........ 3.800 04/01/1997 430,000
230,000 Medina Co., OH, IDR (Nationwide One Proj.).................. 3.900 05/01/1997 229,934
560,000 Summit Co., OH, IDR (Akromold, Inc. Proj.).................. 3.950 05/01/1997 560,000
255,000 Westlake, OH, EDR (Cross County Inns)....................... 3.750 05/01/1997 255,000
1,000,000 Westmoreland Co., PA, IDR (White Cons Indust.).............. 3.960 06/01/1997 1,000,000
710,000 Lexington-Fayette Co., KY, Urban Gov't. Rev.
(Providence Montessori)..................................... 4.10 07/01/1997 710,000
- -------------- ------------
$ 6,888,845 TOTAL ADJUSTABLE RATE PUT BONDS
- -------------- (Amortized Cost $6,887,260)................................. $ 6,887,260
------------
<CAPTION>
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT COMMERCIAL PAPER-- 2.7% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,000,000 Orange Co., FL, Health Facs. Pooled Hosp.
Loan Prog. Rev., Ser. 1985.................................. 3.650% 01/08/1997 $ 1,000,000
- -------------- ------------
$ 1,000,000 TOTAL COMMERCIAL PAPER
- -------------- (Amortized Cost $1,000,000)................................. $ 1,000,000
------------
$ 37,913,845 TOTAL INVESTMENTS AT VALUE-- 102.9%
============== (Amortized Cost $38,015,241)................................ $38,015,241
LIABILITIES IN EXCESS OF OTHER ASSETS-- (2.9%) ............. ( 1,084,880 )
------------
NET ASSETS-- 100.0% ........................................ $36,930,361
============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1996 (Unaudited)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 23.6% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 125,000 San Bernardino, CA, School Health Care Sys. Rev.
Sisters of Charity), Prerefunded @ 102...................... 6.500% 01/01/1997 $ 127,500
100,000 Sacramento, CA, Muni. Utility Dist. Elec. Rev., Ser. S,
Prerefunded @ 102........................................... 6.625 02/01/1997 102,239
220,000 Eureka, CA, School Dist. COP, Prerefunded @ 102............. 7.500 04/01/1997 227,118
1,000,000 Los Angeles Dept. Airports Rev., Prerefunded @ 102.......... 6.900 05/01/1997 1,030,111
265,000 California St. GO........................................... 6.000 05/01/1997 266,843
250,000 Los Angeles Co., CA, Flood Control Dist. GO................. 4.000 05/01/1997 250,375
1,000,000 Alameda Co., CA, Trans. Auth. Sales Tax Rev................. 4.750 05/01/1997 1,003,047
1,000,000 California St., RANS, Ser. 1996A............................ 4.500 06/30/1997 1,002,513
150,000 Los Angeles Co., CA, Trans. Commission Sales Tax Rev.,
Ser. A, Prerefunded @ 102................................... 8.000 07/01/1997 155,918
100,000 Puerto Rico Public Bldg. Auth. Rev., Ser. H,
Prerefunded @ 102........................................... 7.875 07/01/1997 103,930
2,000,000 California School Cash Reserve Prog. Auth., Ser. 1996A...... 4.750 07/02/1997 2,008,640
600,000 Millbrae California School Dist. GO TRANS................... 4.250 07/10/1997 600,597
100,000 San Jose, CA, Redev. Agy., Ser. A (Merged Area Redev. Proj.)
Prerefunded @ 102........................................... 6.800 08/01/1997 103,627
170,000 Pico, CA, Water Dist. COP................................... 3.900 08/15/1997 170,208
1,000,000 Butte Co., CA, Office of Education TRANS.................... 4.500 08/20/1997 1,003,531
195,000 Capistrano, CA, Unified Public Financing Auth. Rev., Ser. B. 4.500 09/01/1997 195,816
275,000 Pleasant Hill, CA, COP (City Hall Proj.), Prerefunded @ 102. 7.000 09/01/1997 286,039
500,000 Fullerton, CA, Joint Union High School District TRANS....... 4.500 09/05/1997 502,115
- -------------- ------------
$ 9,050,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- -------------- (Amortized Cost $9,140,167)................................. $ 9,140,167
------------
<CAPTION>
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FLOATING AND VARIABLE RATE DEMAND NOTES-- 61.6% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,500,000 Union City, CA, MFH (Skylark Apts. Proj. B)................. 2.850% 01/01/1997 $ 2,500,000
500,000 California Statewide Community Dev. Auth. COP, Ser. 1993A... 4.050 01/01/1997 500,000
3,000,000 Santa Paula, CA, Public Fin. Auth. Rev.,
Ser. 1996 (Water Sys. Aquisition Proj.)..................... 4.400 01/01/1997 3,000,000
1,500,000 California Dinuba Fin. Auth., Ser. 1996A
(Wastewater Treatment Plant Proj.).......................... 4.400 01/01/1997 1,500,000
2,100,000 San Rafael, CA, IDR, Ser 1994 (Phoenix American, Inc.)...... 4.300 01/01/1997 2,100,000
1,600,000 Vacaville, CA, IDA IDR (Leggett & Platt, Inc.).............. 4.200 01/01/1997 1,600,000
1,000,000 San Bernardino, CA, IDR (LaQuinta Motor Inns)............... 4.350 01/02/1997 1,000,000
1,500,000 Hanford, CA, Sewer Rev., Ser. A............................. 4.400 01/02/1997 1,500,000
500,000 Orange City, CA, Ser. 1985D (Yorba Linda Apartment Proj.)... 4.150 01/02/1997 500,000
800,000 San Francisco, CA, City & Co. Parking Auth. Rev............. 4.050 01/02/1997 800,000
1,000,000 San Bernardino Co., CA, Capital Impt. Refinancing
Project Rev................................................. 4.400 01/02/1997 1,000,000
1,300,000 San Bernardino Co., CA, COP................................. 4.350 01/02/1997 1,300,000
1,200,000 Los Angeles, CA, Dept. of Water & Power Rev................. 4.100 01/02/1997 1,200,000
1,000,000 California PCR, Ser. A (Ultrapower-Rocklin)................. 5.500 01/31/1997 1,000,000
200,000 Irvine Ranch, CA, Water Dist. Rev., Ser. 1993A.............. 4.850 01/31/1997 200,000
1,500,000 California PCR Fin. Auth. (Pacific Gas & Elec.)............. 4.800 01/31/1997 1,500,000
1,200,000 California PCR Fin. Auth. (Del Marva Power &
Light-Burney Forest Proj.).................................. 4.800 01/31/1997 1,200,000
1,400,000 California PCR Fin. Auth. (Malagra Power Proj. B)........... 5.500 01/31/1997 1,400,000
- -------------- ------------
$23,800,000 TOTAL FLOATING AND VARIABLE RATE DEMAND NOTES
- -------------- (Amortized Cost $23,800,000)................................ $23,800,000
------------
<PAGE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY FUND (Continued)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT COMMERCIAL PAPER-- 14.2% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,000,000 Los Angeles Co., CA, Metro. Trans. Auth., Ser. A............ 3.550% 01/10/1997 $ 2,000,000
1,500,000 Riverside Co., CA, Trans. Auth. Sales Tax Rev............... 3.550 01/15/1997 1,500,000
1,500,000 Los Angeles, CA, Harbor Dept................................ 3.600 01/15/1997 1,500,000
500,000 California PCR Fin. Auth. Rev. (Pacific Gas & Elec.)........ 3.550 01/22/1997 500,000
- -------------- ------------
$ 5,500,000 TOTAL COMMERCIAL PAPER
- -------------- (Amortized Cost $5,500,000)................................. $ 5,500,000
------------
$ 38,350,000 TOTAL INVESTMENTS AT VALUE-- 99.4%
============== (Amortized Cost $38,440,167)................................ $38,440,167
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.6% ............... 219,149
------------
NET ASSETS-- 100.0% ........................................ $38,659,316
============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROYAL PALM FLORIDA TAX-FREE MONEY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1996 (Unaudited)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 20.8% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 100,000 Wakulla Co., FL, Sales Tax Rev., Prerefunded @ 102.......... 7.000% 01/01/1997 $ 102,000
1,000,000 Dunes, FL, Comm. Dev. Dist. Intercoastal Waterway
Rev., Proj. A, Prerefunded @ 102............................ 7.000 02/01/1997 1,021,400
175,000 Escambia Co., FL, School Board COP.......................... 5.250 02/01/1997 175,207
275,000 Longboat Key, FL, Beach Erosion Control Dist. A GO.......... 3.700 02/01/1997 275,000
245,000 Hialeah, FL, Water & Sewer Rev.............................. 5.250 04/01/1997 245,000
250,000 Jacksonville, FL, Elec. Auth. Rev., Ser. 3,
Prerefunded @ 101.50........................................ 6.800 04/01/1997 255,570
150,000 Dade Co., FL, School Board COP, Ser. A...................... 4.600 05/01/1997 150,414
350,000 Florida St. Board of Educ. Cap. Outlay GO, Ser. A........... 5.500 06/01/1997 352,463
580,000 Florida St. Div. Board Fin. Dept. Rev. (Sunshine Skyway),
Escrowed to Maturity ....................................... 9.800 06/01/1997 594,018
1,000,000 Monroe Co., FL, School Dist. TANS........................... 3.600 06/04/1997 999,680
500,000 Broward Co., FL, GO, Prerefunded @ 102...................... 6.900 07/01/1997 517,730
375,000 Florida St. Div. Board Fin. Dept. Rev. (Dept. of
Nature Preservation)........................................ 5.750 07/01/1997 378,331
200,000 Florida St. Turnpike Auth. Rev., Ser. A..................... 5.000 07/01/1997 201,149
175,000 Puerto Rico Commonwealth GO, Prerefunded @ 102.............. 7.125 07/01/1997 181,371
250,000 Venice, FL, Util. Rev., Prerefunded @ 102................... 6.900 07/01/1997 258,504
400,000 Cape Coral, FL, Water Rev................................... 6.625 08/01/1997 406,169
1,000,000 Dade Co., FL, School Board COP, Ser. B...................... 4.250 08/01/1997 1,002,814
100,000 Pinellas Co., FL, Transportation Impt. Rev., Ser. A......... 3.800 08/01/1997 100,030
170,000 Walton Co., FL, GO.......................................... 3.650 08/01/1997 170,000
350,000 Homestead, FL, Special Insurance Assessment Rev............. 4.400 09/01/1997 351,464
225,000 Port Everglades, FL, Port Auth. Rev. (Port,
Airport, Marina Impts.)..................................... 6.900 09/01/1997 229,270
1,240,000 Bay Medical Ctr., FL, Hosp. Rev. (Bay Medical Ctr. Proj.)... 4.000 10/01/1997 1,242,680
250,000 Dade Co., FL, Water & Sewer Rev............................. 4.500 10/01/1997 251,464
200,000 Hollywood, FL, Water & Sewer Rev............................ 5.800 10/01/1997 203,068
350,000 Key West, FL, Util. Board Elec. Rev......................... 3.650 10/01/1997 350,000
125,000 West Palm Beach, FL, Gtd. Entitlement Rev.,
Prerefunded @ 102........................................... 6.500 10/01/1997 129,896
- -------------- ------------
$ 10,035,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- -------------- (Amortized Cost $10,144,692)................................ $10,144,692
------------
<CAPTION>
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FLOATING AND VARIABLE RATE DEMAND NOTES-- 62.9% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,075,000 Broward Co., FL, HFA (Lake Park Assoc. Ltd. Partnership).... 3.850% 01/01/1997 $ 1,075,000
2,000,000 Orange Co., FL, IDR, Ser. 1996A (Univ. of
Central Florida Proj.)...................................... 4.150 01/01/1997 2,000,000
1,000,000 St. John's Co., FL, HFA, Ser. 1996 (Anastasia
Shores Apt. Proj.).......................................... 4.200 01/01/1997 1,000,000
720,000 Volusia Co., FL, Health Facs. Auth. Rev.
(Pooled Hosp. Loan Prog.)................................... 4.200 01/01/1997 720,000
1,000,000 Boca Raton, FL, IDR (Parking Garage)........................ 4.375 01/02/1997 1,000,000
1,200,000 Dade Co., FL, IDA PCR (Florida Power & Light)............... 5.250 01/02/1997 1,200,000
980,000 Dade Co., FL, HFA (Kendall Court Apts.)..................... 4.100 01/02/1997 980,000
1,600,000 Hillsborough Co., FL, IDA PCR (Tampa Elec.)................. 5.250 01/02/1997 1,600,000
1,400,000 Jacksonville, FL, Health Fac. Auth. Rev.,
Ser. 1988 (River Garden).................................... 5.500 01/02/1997 1,400,000
2,400,000 Jacksonville, FL, Health Fac. Auth. Rev.,
Ser. 1996 (Genesis Rehab. Hosp.)............................ 5.000 01/02/1997 2,400,000
1,500,000 Jacksonville, FL, Health Fac. Auth. Rev.
(Faculty Practice Assoc.)................................... 4.35 01/02/1997 1,500,000
1,755,000 Jacksonville, FL, PCR (Florida Power & Light)............... 5.250 01/02/1997 1,755,000
1,500,000 Marion Co., FL, HFA (Paddock Pl. Proj.)..................... 4.200 01/02/1997 1,500,000
1,000,000 Marion Co., FL, HFA (Summer Trace Apts.).................... 4.200 01/02/1997 1,000,000
4,800,000 Pinellas Co., FL, Health Fac. Rev. (Pooled Hosp. Loan)...... 4.800 01/02/1997 4,800,000
1,800,000 Plant City, FL, Hosp. Rev. (South Florida Baptist Hosp.).... 4.400 01/02/1997 1,800,000
2,300,000 St. Lucie Co., FL, PCR (Florida Power & Light).............. 4.000 01/02/1997 2,300,000
<PAGE>
<CAPTION>
ROYAL PALM FLORIDA TAX-FREE MONEY FUND (Continued)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FLOATING AND VARIABLE RATE DEMAND NOTES-- 62.9% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 300,000 St. Lucie Co., FL, PCR (Florida Power & Light).............. 5.250% 01/02/1997 $ 300,000
2,400,000 Volusia Co., FL, Health Facs. Auth.
Rev. (West Volusia Health).................................. 4.000 01/02/1997 2,400,000
- -------------- ------------
$ 30,730,000 TOTAL FLOATING AND VARIABLE RATE DEMAND NOTES
- -------------- (Amortized Cost $30,730,000)................................ $30,730,000
------------
<CAPTION>
==============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT ADJUSTABLE RATE PUT BONDS-- 3.6% RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,770,000 Florida HFA Rev............................................. 3.500% 06/15/1997 $ 1,770,000
- -------------- ------------
$ 1,770,000 TOTAL ADJUSTABLE RATE PUT BONDS
- -------------- (Amortized Cost $1,770,000)................................. $ 1,770,000
------------
<CAPTION>
==============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT COMMERCIAL PAPER-- 13.9% RATE DATE VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,500,000 Orange Co., FL, Health Facs. Pooled Hosp.
Loan Prog., Ser. 1985....................................... 3.650% 01/08/1997 $ 1,500,000
1,500,000 Pinellas Co., FL, Pooled Independent Higher Educ. Fac. Rev.. 3.550 01/14/1997 1,500,000
1,500,000 St. Lucie Co., FL, PCR (Florida Power & Light Proj. B)...... 3.500 01/15/1997 1,500,000
1,100,000 Jacksonville, FL, Rev., Ser. A.............................. 3.550 01/16/1997 1,100,000
1,200,000 Pinellas Co., FL, Pooled Independent Higher Educ. Fac. Rev.. 3.625 01/17/1997 1,200,000
- -------------- ------------
$ 6,800,000 TOTAL COMMERCIAL PAPER
- -------------- (Amortized Cost $6,800,000)................................. $ 6,800,000
------------
$49,335,000 TOTAL INVESTMENTS AT VALUE -- 101.2%
============== (Amortized Cost $49,444,692)................................ $49,444,692
LIABILITIES IN EXCESS OF OTHER ASSETS-- (1.2%) ............. ( 599,467 )
------------
NET ASSETS-- 100.0% ........................................ $48,845,225
============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TAX-FREE INTERMEDIATE TERM FUND
PORTFOLIO OF INVESTMENTS
December 31, 1996 (Unaudited)
================================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT MUNICIPAL BONDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALASKA -- 0.5%
$ 385,000 Alaska St. HFC Rev.......................................... 7.650% 12/01/2010 $ 393,416
------------
ARIZONA -- 3.7%
500,000 Pima Co., AZ, USD No. 1 (Tuscon), Prerefunded @ 102......... 6.750 07/01/1998 530,005
400,000 Arizona Educ. Loan Mkt. Corp. Rev., Ser. A.................. 6.700 03/01/2000 421,208
600,000 Maricopa Co., AZ, School Dist. Rev., Ser.
1991C (Tempe Elem.)......................................... 8.000 07/01/2004 720,996
900,000 Pinal Co, AZ, PCR Magma COP................................. 4.999 12/01/2009 900,000
------------
2,572,209
------------
CALIFORNIA -- 2.5%
500,000 Santa Clara Co., CA, Hsg. Auth. ARPB (Orchard Glen Apts.)... 5.250 11/01/1998 504,510
475,000 Sacramento Co., CA, MFH ARPB (Fairway One Apts.)............ 5.875 02/01/2003 482,538
500,000 Santa Monica, CA, Redev. Agy. Lease Rev..................... 6.000 07/01/2003 536,885
250,000 California HFA Multi-Unit Rental Rev., Ser. B............... 6.500 08/01/2005 263,103
------------
1,787,036
------------
COLORADO -- 1.5%
1,000,000 Westminster, CO, MFH ARPB (Oasis Wexford Apts.),
Mandatory Put.............................................. 5.350 12/01/2005 1,011,260
------------
FLORIDA -- 7.1%
500,000 Florida HFA MFH ARPB, Ser. 1978B (Hampton Lakes II Proj.)... 5.700 04/01/2001 506,365
200,000 Florida St. GO.............................................. 6.500 05/01/2004 202,786
1,000,000 Florida Board of Educ. Capital Outlay GO, Ser. A............ 5.500 06/01/2006 1,045,140
1,000,000 Jacksonville, FL, Excise Tax Rev., Ser. B................... 5.400 10/01/2006 1,017,690
750,000 Hillsborough Co., FL, Solid Waste Rev....................... 5.500 10/01/2006 781,650
1,345,000 Florida HFA MFH Sr. Lien., Ser. I-1......................... 6.100 01/01/2009 1,368,349
------------
4,921,980
------------
GEORGIA -- 1.2%
255,000 Atlanta, GA, Airport Extension & Impt. Rev.,
Escrowed to Maturity........................................ 7.250 01/01/1998 263,933
500,000 Columbus, GA, Med. Ctr. Hosp. Auth. Rev..................... 6.400 08/01/2002 543,600
807,533
------------
ILLINOIS -- 2.6%
500,000 Chicago, IL, Public Bldg. Comm. Rev., Prerefunded @ 102..... 7.700 01/01/1998 529,145
500,000 Aurora, IL, MFH Rev., Ser. 1988 (Fox Valley)................ 7.750 09/01/1998 519,725
680,000 Illinois St. Educ. Fac. Auth. Rev., Ser. A
(Loyola Univ.), Prerefunded @ 102........................... 7.125 07/01/2001 761,641
------------
1,810,511
------------
INDIANA -- 10.1%
3,185,000 Purdue University, IN, COP, Prerefunded @ 102............... 6.250 07/01/2001 3,466,013
1,000,000 Indiana Bond Bank Special Prog. Rev., Ser. A1............... 6.650 01/01/2004 1,078,590
1,865,000 Purdue University, IN, COP.................................. 5.750 07/01/2007 1,948,645
500,000 Indiana HFA Multi-Unit Mtg. Prog. Rev., Ser. 1992A.......... 6.600 01/01/2012 523,365
------------
7,016,613
------------
IOWA -- 1.7%
250,000 Iowa Student Loan Liquidity Corp. Rev....................... 6.400 07/01/2004 268,957
410,000 Iowa HFA Rev................................................ 6.500 07/01/2006 430,811
240,000 Iowa Student Loan Liquidity Corp. Rev....................... 6.600 07/01/2008 251,098
250,000 Cedar Rapids, IA, Hosp. Fac. Rev.
(St. Luke's Methodist Hosp.)................................ 6.000 08/15/2009 262,498
------------
1,213,364
------------
<PAGE>
<CAPTION>
TAX-FREE INTERMEDIATE TERM FUND (Continued)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT MUNICIPAL BONDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
KENTUCKY -- 2.3%
$ 675,000 Owensboro, KY, Elec. Light & Power Rev., Prerefunded @ 102.. 10.250% 01/01/2000 $ 797,958
750,000 Kentucky St. Turnpike Auth. EDR (Revitalization Proj.)...... 5.250 07/01/2005 775,973
------------
1,573,931
------------
LOUISIANA -- 1.5%
440,000 Louisiana Public Fac. Auth. Rev.
(Medical Ctr. of Louisiana)................................. 6.000 10/15/2003 468,983
500,000 West Ouachita Parish, LA, School Dist. GO, Ser. A........... 6.700 03/01/2006 544,645
------------
1,013,628
------------
MARYLAND -- 0.8%
500,000 Maryland St. Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical Sys.)............................ 6.500 07/01/2001 541,385
------------
MASSACHUSETTS -- 4.6%
750,000 Massachusetts St. Indust. Fin. Agy.
ARPB (Asahi/America, Inc.).................................. 5.100 03/01/1999 756,525
500,000 New England Educ. Loan Mkt. Corp. Rev., Ser. 1992E.......... 6.500 09/01/2002 539,280
500,000 New England Educ. Loan Mkt. Corp. Rev., Ser. 1992B.......... 6.600 09/01/2002 539,830
1,280,000 Worcester, MA, GO........................................... 6.000 07/01/2006 1,384,922
------------
3,220,557
------------
MICHIGAN -- 3.0%
1,000,000 Michigan St. Bldg. Auth. Rev., Ser. II...................... 6.400 10/01/2004 1,087,120
930,000 West Bloomfield, MI, School Dist............................ 6.200 05/01/2007 1,013,644
------------
2,100,764
------------
MINNESOTA -- 1.1%
700,000 Centennial, MN, ISD GO, Ser. A.............................. 5.600 02/01/2002 735,847
------------
MISSISSIPPI -- 1.1%
500,000 Mississippi Higher Educ. Rev., Ser. B....................... 6.100 07/01/2001 521,305
250,000 Hattiesburg, MS, Water & Sewer Rev.......................... 4.800 08/01/2002 251,670
------------
772,975
------------
NEBRASKA -- 1.1%
40,000 Nebraska Invest. Fin. Auth. SFM Rev., Ser. A................ 8.600 05/15/1997 40,710
655,000 Nebraska Invest. Fin. Auth. Rev., Ser. 1989
(Foundation for Educ. Fund), Escrowed to Maturity........... 7.000 11/01/2009 689,754
------------
730,464
------------
NEVADA -- 2.4%
315,000 Washoe Co., NV, GO, Prerefunded @ 102....................... 7.375 07/01/1999 343,158
1,000,000 Las Vegas, NV, GO, Sewer Impt. Rev., Prerefunded @ 102...... 6.500 04/01/2002 1,103,140
185,000 Washoe Co., NV, GO.......................................... 7.375 07/01/2009 200,479
------------
1,646,777
------------
NEW YORK -- 2.9%
500,000 New York Local Gov't. Asst. Corp. Rev., Ser. 1991B.......... 7.000 04/01/2002 555,890
85,000 New York, NY, GO............................................ 8.000 08/01/2005 88,613
1,300,000 New York St. Twy Auth. Local Hwy Impt. Rev.................. 5.500 04/01/2006 1,358,331
------------
2,002,834
------------
NORTH CAROLINA -- 6.3%
1,065,000 Durham, NC, COP............................................. 6.375 12/01/2003 1,172,746
1,200,000 Asheville, NC, GO........................................... 6.100 03/01/2002 1,279,080
980,000 Univ. of North Carolina Chapel Hill Rev. (Univ. NC Hosp.)... 5.050 02/15/2009 968,583
1,000,000 Univ. of North Carolina Chapel Hill Rev. (Univ. NC Hosp.)... 5.150 02/15/2010 987,280
------------
4,407,689
------------
<PAGE>
<CAPTION>
TAX-FREE INTERMEDIATE TERM FUND (Continued)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT MUNICIPAL BONDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OHIO -- 16.5%
$ 500,000 Ohio St. Bldg. Auth. Rev., Ser. A, Escrowed to Maturity..... 7.150% 03/01/1999 $ 530,905
700,000 Franklin Co., OH, Dev. & Ref. Rev., Ser. 1993
(American Chemical Soc.).................................... 5.500 04/01/2000 718,340
500,000 Franklin Co., OH, Rev. (Online Computer Library Ctr.)....... 5.500 04/15/2000 513,245
710,000 Fairfield, OH, IDR ARPB (Skyline Chili, Inc.)............... 5.000 09/01/2000 709,716
950,000 Akron, Bath & Copley, OH, Joint Twp. Hosp. Rev.
(Summa Health Systems)...................................... 5.900 11/15/2002 1,003,457
270,000 Warren Co., OH, Hosp. Fac. Rev. (Otterbein Home)............ 7.000 07/01/2003 294,702
1,000,000 Ohio St. EDR Ohio Enterprise Bond Fd.
(Smith Steelite Proj.)...................................... 5.600 12/01/2003 1,013,730
500,000 Hamilton Co., OH, Hosp. Fac. Rev.
(Episcopal Retirement Home)................................. 6.600 01/01/2004 543,765
825,000 Jackson, OH, Electric Sys. Mtg. Rev......................... 5.200 07/15/2004 823,961
445,000 Ohio St. EDR Ohio Enterprise Bond Fd. (Cheryl & Co.)........ 5.500 12/01/2004 462,920
1,005,000 Franklin Co., OH, Health Care Fac. Rev.
(First Comm. Village)....................................... 6.000 06/01/2006 1,026,225
400,000 Painesville, OH, Elec. Rev.................................. 6.000 11/01/2006 423,772
530,000 Toledo, OH, GO.............................................. 6.000 12/01/2006 574,902
840,000 Kent State University General Receipts Rev.................. 6.000 05/01/2007 907,788
590,000 Ohio St. GO................................................. 4.950 08/01/2008 586,790
800,000 West Clermont, OH, LSD GO................................... 6.150 12/01/2008 863,112
500,000 Hamilton Co., OH, Hosp. Fac. Rev. (Bethesda Hosp.).......... 7.000 01/01/2009 514,360
------------
11,511,690
------------
PENNSYLVANIA -- 2.4%
590,000 Chartiers Valley, PA, Comm. Dev. ARPB (Colonial Bldg.
Partners Proj.)............................................. 5.625 12/01/1997 596,136
500,000 Pennsylvania St., IDR, Ser. A, Prerefunded @ 102............ 7.000 07/01/2001 557,730
500,000 Pennsylvania Fin. Auth. Muni. Cap. Impt. Proj. Rev.......... 6.600 11/01/2009 534,420
------------
1,688,286
------------
SOUTH CAROLINA -- 3.4%
145,000 Piedmont, SC, Muni. Power Agy. Rev., Ser. A., ETM........... 6.000 01/01/2002 155,043
855,000 Piedmont, SC, Muni. Power Agy. Rev., Ser. A., (Non- ETM).... 6.000 01/01/2002 905,539
525,000 South Carolina St. GO, Ser. A............................... 6.000 03/01/2004 561,850
725,000 Richland-Lexington, SC, Airport Dist. Rev., Ser. 1995
(Columbia Metro.)........................................... 6.000 01/01/2008 762,569
------------
2,385,001
------------
TENNESSEE -- 1.6%
525,000 Southeast, TN, Tax-Exempt Mtg. Trust ARPB, Ser. 1990,
Mandatory Put............................................... 7.250 04/01/2003 562,380
500,000 Nashville, TN, Metro. Airport Rev., Ser. C.................. 6.625 07/01/2007 546,105
------------
1,108,485
------------
TEXAS -- 9.0%
500,000 N. Central, TX, Health Fac. Rev. (Baylor Health Care),
Indexed INFLOS.............................................. 7.300 11/01/1997 547,625
500,000 Texas Turnpike Auth. Rev. (Dallas N. Tollway),
Prerefunded @ 102........................................... 7.250 01/01/1999 540,165
500,000 Houston, TX, Sr. Lien Rev., Ser. A
(Hotel Tax & Parking Fac.), Prerefunded @ 100............... 7.000 07/01/2001 552,125
350,000 Univ. of Texas, TX, Rev., Ser. B, Prerefunded @102.......... 6.750 08/15/2001 389,452
1,000,000 Texas National Research Lab. Fin. Corp. Lease Rev.,
Prerefunded @ 102........................................... 6.850 12/01/2001 1,122,420
500,000 N. Texas Higher Educ. Student Loan Rev., Ser. 1991A......... 6.875 04/01/2002 529,530
650,000 Lufkin, TX, ISD GO.......................................... 7.250 02/15/2006 759,408
650,000 Galveston, TX, Health Fac. Rev. (Devereux Foundation)....... 4.900 11/01/2006 649,955
432,860 Midland, TX, HFC Rev., Ser. A2.............................. 8.450 12/01/2011 465,337
650,000 Univ. of Texas, TX, Rev., Ser. B............................ 6.750 08/15/2013 703,079
------------
6,259,096
------------
UTAH -- 1.3%
870,000 Utah St. School Dist. Fin. Corp. Rev.,
Mandatory Redemption....................................... 8.375 08/15/1998 934,927
------------
<PAGE>
<CAPTION>
TAX-FREE INTERMEDIATE TERM FUND (Continued)
================================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT MUNICIPAL BONDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VIRGINIA -- 1.5%
$ 500,000 Chesterfield Co., VA, GO, Ser. B............................ 6.200% 01/01/1999 $ 521,530
500,000 Chesapeake, VA, GO.......................................... 5.900 08/01/2005 534,420
------------
1,055,950
------------
WASHINGTON -- 3.2%
750,000 Seattle, WA, Drain & Wastewater Util. Rev.,
Prerefunded @ 102........................................... 7.000 12/01/1999 819,683
335,000 Washington St. GO, Ser. A, Prerefunded @ 100................ 6.400 03/01/2001 359,568
1,000,000 Washington St. Motor Vehicle Fuel Tax GO.................... 6.000 09/01/2004 1,070,600
------------
2,249,851
------------
WISCONSIN -- 1.5%
505,000 Village of Dresser, WI, PCR (F & A Dairy, Inc.)............. 6.000 05/01/2000 512,383
500,000 Wisconsin Public Power System Rev., Ser. A,
Prerefunded @ 102........................................... 7.500 07/01/2000 559,920
- -------------- ------------
1,072,303
------------
$ 64,662,860 TOTAL MUNICIPAL BONDS-- 98.4%
============== (Amortized Cost $66,135,352)................................ $68,546,362
OTHER ASSETS IN EXCESS OF LIABILITIES-- 1.6% ............... 1,129,521
------------
NET ASSETS-- 100.0% ........................................ $69,675,883
============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OHIO INSURED TAX-FREE FUND
PORTFOLIO OF INVESTMENTS
December 31, 1996 (Unaudited)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 98.2% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 470,000 Clermont Co., OH, Hosp. Fac. Rev. (Mercy Health Sys.),
Prerefunded @ 102........................................... 7.500% 09/01/1999 $ 517,569
500,000 Montgomery Co., OH, Garbage & Refuse Rev., Ser. A,
Prerefunded @ 102........................................... 7.100 11/01/1999 548,050
500,000 Ohio St. Bldg. Auth. Local Jail Rev., Prerefunded @ 102..... 7.350 04/01/2000 555,185
500,000 Ohio St. Higher Educ. Fac. Rev. (Ohio Northern Univ.),
Prerefunded @ 100........................................... 7.250 05/15/2000 546,300
500,000 Akron, Bath & Copley, OH, Joint Twp. Hosp. Rev.
(Children's Hosp.), Prerefunded @ 102....................... 7.450 11/15/2000 563,885
500,000 Franklin Co., OH, Convention Fac. Auth. Tax &
Lease Rev., Prerefunded @ 102............................... 7.000 12/01/2000 557,205
500,000 Fairfield Co., OH, Hosp. Fac. Rev.
(Lancaster-Fairfield Hosp.), Prerefunded @ 102.............. 7.100 06/15/2001 561,440
250,000 Franklin Co., OH, IDR (1st Community Village Healthcare),
Prerefunded @ 101.50........................................ 10.125 08/01/2001 306,955
30,000 Clermont Co., OH, Hosp. Fac. Rev., Ser. A
(Mercy Health Sys.), Prerefunded @ 100...................... 7.500 09/01/2001 33,828
1,000,000 Clermont Co., OH, Hosp. Fac. Rev. (Mercy Health Sys.),
Prerefunded @ 102........................................... 6.733 09/01/2001 1,109,230
460,000 Westerville, Minerva Park & Blendon, OH, Joint
Hosp. Dist. Rev. (St. Ann's), Prerefunded @ 102............. 7.100 09/15/2001 518,889
1,310,000 Cuyahoga Co., OH, Hosp. Rev. (Mt. Sinai), Prerefunded @ 102. 6.625 11/01/2001 1,455,541
500,000 Springfield, OH, LSD GO, Prerefunded @ 102.................. 6.600 12/01/2001 558,475
500,000 Clermont Co., OH, Sewer Sys. Rev., Ser. 1991,
Prerefunded @ 102........................................... 7.100 12/01/2001 567,155
5,000 Cleveland, OH, Waterworks Impt. Rev., Prerefunded @ 102..... 6.500 01/01/2002 5,535
15,000 Summit Co., OH, GO, Ser. A, Prerefunded @ 100............... 6.900 08/01/2002 16,750
40,000 Ohio St. Bldg. Auth. Rev. (Frank Lausch Proj.),
Prerefunded @ 100........................................... 10.125 04/01/2003 48,739
160,000 Ohio St. Bldg. Auth. Rev. (Columbus St. Proj.),
Prerefunded @ 100........................................... 10.125 04/01/2003 193,699
230,000 Summit Co., OH, GO, Ser. A, Prerefunded @ 100............... 6.900 08/01/2003 260,273
290,000 Alliance, OH, CSD GO........................................ 6.900 12/01/2006 322,727
500,000 Cleveland, OH, Waterworks Impt. Rev., Ser. G (First Mtg.)... 5.500 01/01/2009 516,880
1,000,000 Franklin Co., OH, Hosp. Impt. Rev. (Holy Cross Health Sys.). 7.625 06/01/2009 1,109,010
500,000 Mansfield, OH, Hosp. Impt. Rev. (Mansfield General)......... 6.700 12/01/2009 547,680
250,000 Ohio St. Water Dev. Auth. & Impt. Rev. (Pure Water),
Escrowed to Maturity........................................ 7.000 12/01/2009 283,415
500,000 Ohio Capital Corp. MFH Rev.................................. 7.500 01/01/2010 534,875
500,000 Hamilton, OH, Water Sys. Mtg. Rev., Ser. 1991A.............. 6.400 10/15/2010 539,555
500,000 Montgomery Co., OH, Solid Waste Rev......................... 5.350 11/01/2010 500,370
500,000 Butler Co., OH, Hosp. Fac. Rev. (Middletown Regional Hosp.). 6.750 11/15/2010 552,110
1,000,000 Canton, OH, Waterworks Sys. GO, Ser. 1995................... 5.750 12/01/2010 1,040,250
500,000 St. Mary's, OH, Elec. Sys. Rev.............................. 7.150 12/01/2010 555,470
495,000 Cleveland, OH, Waterworks Impt. Rev., Ser. F (First Mtg.)... 6.500 01/01/2011 538,209
275,000 Cuyahoga Co., OH, Hosp. Rev. (University Hosp.),
Escrowed to Maturity........................................ 9.000 06/01/2011 305,621
1,500,000 Ohio St. Water Dev. Auth. PCR............................... 5.300 06/01/2011 1,486,515
570,000 Ohio HFA SFM Rev., Ser. 1991D............................... 7.000 09/01/2011 604,120
365,000 Bexley, OH, CSD GO.......................................... 7.125 12/01/2011 433,689
500,000 Greene Co., OH, Water Sys. Rev.............................. 6.850 12/01/2011 553,940
500,000 Maple Heights, OH, GO....................................... 7.000 12/01/2011 557,195
760,000 Springboro, OH, CSD GO...................................... 6.000 12/01/2011 820,048
500,000 Stark Co., OH, GO........................................... 7.050 12/01/2011 550,845
500,000 Strongsville, OH, CSD GO.................................... 5.350 12/01/2011 504,485
530,000 Urbana, OH, Wastewater Impt. GO............................. 7.050 12/01/2011 595,556
600,000 Westerville, OH, Water Sys. Impt. GO........................ 6.450 12/01/2011 655,926
500,000 Cleveland, OH, GO, Ser. A................................... 6.375 07/01/2012 543,095
255,000 Summit Co., OH, GO, Ser. A.................................. 6.900 08/01/2012 281,665
500,000 Brunswick, OH, CSD GO....................................... 6.900 12/01/2012 555,025
500,000 Ohio St. Higher Educ. Fac. Rev. (Univ. of Dayton)........... 7.250 12/01/2012 556,290
500,000 Strongsville, OH, CSD GO.................................... 5.375 12/01/2012 503,440
500,000 Summit Co., OH, GO.......................................... 6.625 12/01/2012 548,590
500,000 Warrensville Heights, OH, GO................................ 6.400 12/01/2012 542,645
1,095,000 West Clermont, OH, LSD GO................................... 6.900 12/01/2012 1,253,830
<PAGE>
<CAPTION>
OHIO INSURED TAX-FREE FUND (Continued)
=================================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 98.2% RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 500,000 Worthington, OH, CSD GO..................................... 6.375% 12/01/2012 $ 542,630
1,000,000 Hamilton Co., OH, Hosp. Fac. Rev., Ser. D
(Children's Hosp. Medical Ctr.)............................. 5.000 05/15/2013 950,560
350,000 Ohio HFA SFM Rev., Ser. 1990D............................... 7.500 09/01/2013 369,212
1,000,000 Butler Co., OH, Sewer Sys. Rev.............................. 5.125 12/01/2013 967,440
500,000 Ohio St. Bldg. Auth. Rev., Ser. 1994A
(Juvenile Correctional Bldg.)............................... 6.600 10/01/2014 552,880
500,000 Mahoning Co., OH, Hosp. Impt. Rev. (YHA, Inc.).............. 7.000 10/15/2014 547,280
460,000 Bedford Heights, OH, GO..................................... 6.500 12/01/2014 510,536
290,000 Garfield Heights, OH, GO.................................... 6.300 12/01/2014 312,130
290,000 Northwest, OH, LSD GO....................................... 7.050 12/01/2014 323,802
530,000 Ottawa Co., OH, GO.......................................... 5.750 12/01/2014 543,801
1,000,000 Portage Co., OH, GO......................................... 6.200 12/01/2014 1,064,700
1,000,000 Clermont Co., OH, Hosp. Fac. Rev. (Mercy Health Sys.)....... 5.875 09/01/2015 1,018,590
600,000 Toledo-Lucas Co., OH, Convention Ctr. Ref. Rev.............. 5.700 10/01/2015 608,154
500,000 Cuyahoga Co., OH, GO........................................ 5.250 11/15/2015 487,120
1,000,000 Buckeye Valley, OH, Delaware Co. LSD GO..................... 6.850 12/01/2015 1,175,720
1,750,000 Dayton, OH, Airport Rev. (James M. Cox
Dayton Int'l. Airport)...................................... 5.250 12/01/2015 1,690,885
500,000 Delaware, OH, CSD GO........................................ 5.750 12/01/2015 507,900
1,700,000 Massillon, OH, GO........................................... 6.625 12/01/2015 1,913,333
500,000 Ohio St. Higher Educ. Fac. Rev. (Univ. of Dayton)........... 6.750 12/01/2015 554,225
1,420,000 Stow, OH, Safety Center Const. GO........................... 6.150 12/01/2015 1,510,525
1,000,000 Tuscarawas, OH, LSD GO, Ser. 1995........................... 6.600 12/01/2015 1,109,210
500,000 Cleveland, OH, Waterworks Impt. Rev......................... 6.250 01/01/2016 529,275
750,000 Columbus-Polaris Hsg. Corp. Ohio Mtg. Rev.,
Prerefunded @100............................................ 7.400 01/01/2016 845,677
500,000 Ohio St. Air Quality Dev. Auth. Rev. (Ohio Edison).......... 7.450 03/01/2016 550,320
380,000 Ohio HFA SFM Rev., Ser. 1990F............................... 7.600 09/01/2016 402,982
1,055,000 Ohio HFA SFM Rev., Ser. 1991D............................... 7.050 09/01/2016 1,115,019
500,000 Celina, OH, Wastewater Sys. Mtg. Rev........................ 6.550 11/01/2016 541,280
1,000,000 Cleveland, OH, Public Power Sys. Rev........................ 7.000 11/15/2016 1,152,940
750,000 Montgomery Co., OH, Hosp. Rev. (Miami Valley Hosp.)......... 6.250 11/15/2016 790,875
705,000 Big Walnut, OH, LSD GO (Community Library Proj.)............ 6.650 12/01/2016 777,876
815,000 Butler Co., OH, GO.......................................... 5.750 12/01/2016 834,201
590,000 Garfield Heights, OH, GO.................................... 7.050 12/01/2016 649,997
1,000,000 Greater Cleveland, OH, Regional Transit Auth. GO............ 5.650 12/01/2016 1,000,800
1,000,000 North Olmsted, OH, GO....................................... 5.000 12/01/2016 942,200
1,780,000 Troy, OH, GO................................................ 5.000 12/01/2016 1,654,706
1,335,000 Kent St. Univ. General Receipts Rev......................... 5.500 05/01/2017 1,330,034
850,000 Alliance, OH, Waterworks Sys. Rev........................... 6.650 10/15/2017 930,036
500,000 Toledo, OH, Sewer Sys. Rev.................................. 6.350 11/15/2017 537,130
675,000 Reynoldsburg, OH, CSD GO.................................... 6.550 12/01/2017 739,516
500,000 Ohio St. Air Quality Dev. Auth. Rev., Ser. 1990B
(Ohio Edison)............................................... 7.100 06/01/2018 546,640
500,000 Newark, OH, Water Sys. Impt. Rev............................ 6.000 12/01/2018 519,550
1,000,000 S. Euclid-Lyndhurst, OH, CSD GO, Ser. 1996.................. 6.400 12/01/2018 1,090,670
500,000 Seneca Co., OH, GO (Jail Fac.).............................. 6.500 12/01/2018 547,875
500,000 Franklin Co., OH, Hosp. Rev., Ser. 1991 (Mt. Carmel)........ 6.750 06/01/2019 550,705
500,000 Crawford Co., OH, GO........................................ 6.750 12/01/2019 561,965
360,000 Cuyahoga Co., OH, Hosp. Rev. (University Hosp.)............. 6.250 01/15/2020 379,649
500,000 Lucas Co., OH, Hosp. Impt. Rev. (St. Vincent's Hosp.)....... 6.750 08/15/2020 541,845
1,750,000 Celina, OH, CSD GO.......................................... 5.250 12/01/2020 1,676,395
1,000,000 Ohio St. Air Quality Dev. Auth. Rev., Ser. 1985A
(Columbus Southern Power)................................... 6.375 12/01/2020 1,071,250
200,000 Montgomery Co., OH, Hosp. Rev. (Sisters of Charity)......... 6.625 05/15/2021 214,850
15,000 Puerto Rico HFC SFM Rev., Ser. A............................ 7.800 10/15/2021 15,392
1,700,000 Lorain Co., OH, Hosp. Rev. (EMH Regional Med. Ctr.)......... 5.375 11/01/2021 1,648,881
1,220,000 Butler Co., OH, Sewer Sys. Rev.............................. 5.250 12/01/2021 1,174,030
1,000,000 Kent St. Univ. General Receipts Rev......................... 6.500 05/01/2022 1,089,170
1,000,000 Cleveland, OH, Parking Facs. Rev............................ 5.500 09/15/2022 991,750
<PAGE>
<CAPTION>
OHIO INSURED TAX-FREE FUND (Continued)
===============================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 98.2% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 160,000 Puerto Rico HFC Rev......................................... 6.850% 10/15/2023 $ 167,733
1,000,000 Springboro, OH, CSD GO...................................... 5.100 12/01/2023 941,440
1,000,000 Ohio St. Turnpike Rev., Ser. 1996A.......................... 5.500 02/15/2026 982,830
1,000,000 Ohio St. Air Quality PCR (Penn Power)....................... 6.450 05/01/2027 1,070,760
- -------------- ------------
$ 71,935,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- -------------- (Amortized Cost $71,319,434)................................ $76,186,651
------------
<CAPTION>
================================================================================================================
PRINCIPAL COUPON MATURITY
AMOUNT FLOATING AND VARIABLE RATE DEMAND NOTES-- 0.8% RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 100,000 Ohio St. Air Quality Dev. Auth. Rev., Ser. 1985B............ 4.700% 01/02/1997 $ 100,000
500,000 Cuyahoga Co., OH, Hosp. Impt. Rev. (Univ. Hosp. Cleveland).. 5.000 01/02/1997 500,000
- -------------- ------------
$ 600,000 TOTAL FLOATING AND VARIABLE RATE DEMAND NOTES
- -------------- (Amortized Cost $600,000)................................... $ 600,000
------------
$ 72,535,000 TOTAL INVESTMENTS AT VALUE-- 99.0%
============== (Amortized Cost $71,919,434)................................ $76,786,651
OTHER ASSETS IN EXCESS OF LIABILITIES-- 1.0% .............. 756,128
------------
NET ASSETS-- 100.0% ........................................ $77,542,779
============
</TABLE>
<PAGE>
NOTES TO PORTFOLIOS OF INVESTMENTS
December 31, 1996 (Unaudited)
==============================================================================
Variable and adjustable rate put bonds earn interest at a coupon rate which
fluctuates at specified intervals, usually daily, monthly or semi-annually.
The rates shown in the Portfolios of Investments are the coupon rates in
effect at December 31, 1996.
Put bonds may be redeemed at the discretion of the holder on specified dates
prior to maturity. Mandatory put bonds are automatically redeemed at a
specified put date unless action is taken by the holder to prevent redemption.
Bonds denoted as prerefunded are anticipated to be redeemed prior to their
scheduled maturity. The dates indicated in the Portfolios of Investments are
the stipulated prerefunded dates.
PORTFOLIO ABBREVIATIONS:
ARPB - Adjustable Rate Put Bonds
ISD - Independent School District
BANS - Bond Anticipation Notes
LSD - Local School District
COP - Certificates of Participation
MFH - Multi-Family Housing
CSD - City School District
MFM - Multi-Family Mortgage
EDA - Economic Development Authority
PCR - Pollution Control Revenue
EDR - Economic Development
RANS - Revenue Anticipation Notes
GO - General Obligation
SFM - Single Family Mortgage
HFA - Housing Finance Authority/Agency
TANS - Tax Anticipation Notes
HFC - Housing Finance Corporation
TRANS - Tax Revenue Anticipation Notes
IDA - Industrial Development Authority/Agency
USD - Unified School District
IDR - Industrial Development Revenue
VRDN - Variable Rate Demand Notes
<PAGE>
MIDWEST GROUP OF FUNDS(R)
MIDWEST GROUP TAX FREE TRUST
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-3874
Nationwide (Toll Free) 800-543-8721
Cincinnati 629-2000
Rate Line 579-0999
Shareholder Services
Nationwide (Toll Free) 800-543-0407
Cincinnati 629-2050
OFFICERS
Robert H. Leshner, President
John F. Splain, Secretary
Mark J. Seger, Treasurer
INVESTMENT ADVISER/UNDERWRITER
MIDWEST GROUP FINANCIAL SERVICES, INC.
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-3874
TRANSFER AGENT
MGF SERVICE CORP.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
This report is authorized for distribution only when it is
accompanied or preceded by a current prospectus of Midwest Group Tax
Free Trust.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> MIDWEST GROUP TAX FREE TRUST
<SERIES>
<NUMBER> 1
<NAME> TAX-FREE MONEY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 38,015,241
<INVESTMENTS-AT-VALUE> 38,015,241
<RECEIVABLES> 290,575
<ASSETS-OTHER> 7,146
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 38,312,962
<PAYABLE-FOR-SECURITIES> 1,200,739
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 181,862
<TOTAL-LIABILITIES> 1,382,601
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 36,927,811
<SHARES-COMMON-STOCK> 36,938,254
<SHARES-COMMON-PRIOR> 25,353,881
<ACCUMULATED-NII-CURRENT> 3,600
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,050)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 36,930,361
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 545,042
<OTHER-INCOME> 0
<EXPENSES-NET> 141,563
<NET-INVESTMENT-INCOME> 403,479
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 403,479
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 399,879
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 29,729,090
<NUMBER-OF-SHARES-REDEEMED> 18,536,235
<SHARES-REINVESTED> 391,518
<NET-CHANGE-IN-ASSETS> 11,587,973
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,050)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 71,497
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 141,563
<AVERAGE-NET-ASSETS> 28,434,551
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> .014
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .014
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> .99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> MIDWEST GROUP TAX FREE TRUST
<SERIES>
<NUMBER> 21
<NAME> TAX-FREE INTERMEDIATE TERM FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 66,135,352
<INVESTMENTS-AT-VALUE> 68,546,362
<RECEIVABLES> 1,348,555
<ASSETS-OTHER> 17,322
<OTHER-ITEMS-ASSETS> 33,857
<TOTAL-ASSETS> 69,946,096
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 270,213
<TOTAL-LIABILITIES> 270,213
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 68,745,123
<SHARES-COMMON-STOCK> 5,848,666
<SHARES-COMMON-PRIOR> 6,238,847
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,480,250)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,411,010
<NET-ASSETS> 64,448,995
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,976,699
<OTHER-INCOME> 0
<EXPENSES-NET> 370,223
<NET-INVESTMENT-INCOME> 1,606,476
<REALIZED-GAINS-CURRENT> 140,532
<APPREC-INCREASE-CURRENT> 990,103
<NET-CHANGE-FROM-OPS> 2,737,111
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,500,636
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 626,071
<NUMBER-OF-SHARES-REDEEMED> 1,124,942
<SHARES-REINVESTED> 108,690
<NET-CHANGE-IN-ASSETS> (3,225,863)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,620,782)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 179,118
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 370,223
<AVERAGE-NET-ASSETS> 65,909,833
<PER-SHARE-NAV-BEGIN> 10.85
<PER-SHARE-NII> .25
<PER-SHARE-GAIN-APPREC> .17
<PER-SHARE-DIVIDEND> .25
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.02
<EXPENSE-RATIO> .99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> MIDWEST GROUP TAX FREE TRUST
<SERIES>
<NUMBER> 23
<NAME> TAX-FREE INTERMEDIATE TERM FUND CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 66,135,352
<INVESTMENTS-AT-VALUE> 68,546,362
<RECEIVABLES> 1,348,555
<ASSETS-OTHER> 17,322
<OTHER-ITEMS-ASSETS> 33,857
<TOTAL-ASSETS> 69,946,096
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 270,213
<TOTAL-LIABILITIES> 270,213
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 68,745,123
<SHARES-COMMON-STOCK> 474,267
<SHARES-COMMON-PRIOR> 482,869
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,480,250)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,411,010
<NET-ASSETS> 5,226,888
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,976,699
<OTHER-INCOME> 0
<EXPENSES-NET> 370,223
<NET-INVESTMENT-INCOME> 1,606,476
<REALIZED-GAINS-CURRENT> 140,532
<APPREC-INCREASE-CURRENT> 990,103
<NET-CHANGE-FROM-OPS> 2,737,111
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 105,840
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 89,384
<NUMBER-OF-SHARES-REDEEMED> 107,220
<SHARES-REINVESTED> 9,234
<NET-CHANGE-IN-ASSETS> (11,659)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,620,782)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 179,118
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 370,223
<AVERAGE-NET-ASSETS> 5,330,312
<PER-SHARE-NAV-BEGIN> 10.85
<PER-SHARE-NII> .22
<PER-SHARE-GAIN-APPREC> .17
<PER-SHARE-DIVIDEND> .22
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.02
<EXPENSE-RATIO> 1.57
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> MIDWEST GROUP TAX FREE TRUST
<SERIES>
<NUMBER> 31
<NAME> OHIO INSURED TAX-FREE FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 71,919,434
<INVESTMENTS-AT-VALUE> 76,786,651
<RECEIVABLES> 828,565
<ASSETS-OTHER> 20,490
<OTHER-ITEMS-ASSETS> 73,039
<TOTAL-ASSETS> 77,708,745
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 165,966
<TOTAL-LIABILITIES> 165,966
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 72,601,169
<SHARES-COMMON-STOCK> 6,004,449
<SHARES-COMMON-PRIOR> 6,345,325
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 74,393
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,867,217
<NET-ASSETS> 73,472,848
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,302,720
<OTHER-INCOME> 0
<EXPENSES-NET> 309,093
<NET-INVESTMENT-INCOME> 1,993,627
<REALIZED-GAINS-CURRENT> 74,887
<APPREC-INCREASE-CURRENT> 1,732,034
<NET-CHANGE-FROM-OPS> 3,800,548
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,907,078
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,549,516
<NUMBER-OF-SHARES-REDEEMED> 7,009,201
<SHARES-REINVESTED> 118,809
<NET-CHANGE-IN-ASSETS> (2,465,335)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (494)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 198,513
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 309,093
<AVERAGE-NET-ASSETS> 75,107,730
<PER-SHARE-NAV-BEGIN> 11.97
<PER-SHARE-NII> .31
<PER-SHARE-GAIN-APPREC> .27
<PER-SHARE-DIVIDEND> .31
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.24
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> MIDWEST GROUP TAX FREE TRUST
<SERIES>
<NUMBER> 33
<NAME> OHIO INSURED TAX-FREE FUND CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 71,919,434
<INVESTMENTS-AT-VALUE> 76,786,651
<RECEIVABLES> 828,565
<ASSETS-OTHER> 20,490
<OTHER-ITEMS-ASSETS> 73,039
<TOTAL-ASSETS> 77,708,745
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 165,966
<TOTAL-LIABILITIES> 165,966
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 72,601,169
<SHARES-COMMON-STOCK> 332,643
<SHARES-COMMON-PRIOR> 331,937
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 74,393
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,867,217
<NET-ASSETS> 4,069,931
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,302,720
<OTHER-INCOME> 0
<EXPENSES-NET> 309,093
<NET-INVESTMENT-INCOME> 1,993,627
<REALIZED-GAINS-CURRENT> 74,887
<APPREC-INCREASE-CURRENT> 1,732,034
<NET-CHANGE-FROM-OPS> 3,800,548
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 86,549
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 47,074
<NUMBER-OF-SHARES-REDEEMED> 52,596
<SHARES-REINVESTED> 6,228
<NET-CHANGE-IN-ASSETS> 97,437
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (494)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 198,513
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 309,093
<AVERAGE-NET-ASSETS> 3,852,979
<PER-SHARE-NAV-BEGIN> 11.97
<PER-SHARE-NII> .27
<PER-SHARE-GAIN-APPREC> .27
<PER-SHARE-DIVIDEND> .27
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.24
<EXPENSE-RATIO> 1.33
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> MIDWEST GROUP TAX FREE TRUST
<SERIES>
<NUMBER> 6
<NAME> OHIO TAX-FREE MONEY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 274,936,278
<INVESTMENTS-AT-VALUE> 274,936,278
<RECEIVABLES> 2,384,145
<ASSETS-OTHER> 50,860
<OTHER-ITEMS-ASSETS> 2,711,851
<TOTAL-ASSETS> 280,083,134
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 396,049
<TOTAL-LIABILITIES> 396,049
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 279,674,180
<SHARES-COMMON-STOCK> 279,674,336
<SHARES-COMMON-PRIOR> 240,309,987
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12,905
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 279,687,085
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,665,261
<OTHER-INCOME> 0
<EXPENSES-NET> 962,066
<NET-INVESTMENT-INCOME> 3,703,195
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 3,703,195
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,703,195
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 336,458,026
<NUMBER-OF-SHARES-REDEEMED> 299,454,571
<SHARES-REINVESTED> 2,360,738
<NET-CHANGE-IN-ASSETS> 39,364,193
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 12,905
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 588522
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 962,066
<AVERAGE-NET-ASSETS> 255,179,313
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> .015
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .015
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
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<ARTICLE> 6
<CIK> 0000352667
<NAME> MIDWEST GROUP TAX FREE TRUST
<SERIES>
<NUMBER> 7
<NAME> CALIFORNIA TAX-FREE MONEY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 38,440,167
<INVESTMENTS-AT-VALUE> 38,440,167
<RECEIVABLES> 308,657
<ASSETS-OTHER> 8,353
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 38,757,177
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 97,861
<TOTAL-LIABILITIES> 97,861
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 38,660,209
<SHARES-COMMON-STOCK> 38,660,209
<SHARES-COMMON-PRIOR> 36,123,641
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (893)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 38,659,316
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 728,460
<OTHER-INCOME> 0
<EXPENSES-NET> 164,368
<NET-INVESTMENT-INCOME> 564,092
<REALIZED-GAINS-CURRENT> 687
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 564,779
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 564,092
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 88,025,176
<NUMBER-OF-SHARES-REDEEMED> 86,018,633
<SHARES-REINVESTED> 530,025
<NET-CHANGE-IN-ASSETS> 2,537,255
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,580)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 102,741
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 164,368
<AVERAGE-NET-ASSETS> 40,870,893
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> .014
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .014
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> .80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> MIDWEST GROUP TAX FREE TRUST
<SERIES>
<NUMBER> 81
<NAME> ROYAL PALM FLORIDA TAX-FREE MONEY FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 49,444,692
<INVESTMENTS-AT-VALUE> 49,444,692
<RECEIVABLES> 321,382
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