Tax-Exempt
ANNUAL REPORT
JUNE 30, 1998
TAX-FREE
MONEY FUND
CALIFORNIA TAX-FREE
MONEY FUND
OHIO TAX-FREE
MONEY FUND
FLORIDA TAX-FREE
MONEY FUND
TAX-FREE INTERMEDIATE
TERM FUND
OHIO INSURED
TAX-FREE FUND
KENTUCKY
TAX-FREE FUND
Countrywide Investments
COUNTRYWIDE TAX-FREE TRUST
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-4094
Nationwide: (Toll Free) 800-543-8721
Cincinnati: 629-2000
Rate Line: 579-0999
Shareholder Services
Nationwide: (Toll Free) 800-543-0407
Cincinnati: 629-2050
BOARD OF TRUSTEES
Angelo R. Mozilo, Chairman
Robert H. Leshner, President
Donald L. Bogdon, M.D.
H. Jerome Lerner
Howard J. Levine
Fred A. Rappoport
Oscar P. Robertson
John F. Seymour, Jr.
Sebastiano Sterpa
INVESTMENT ADVISER
Countrywide Investments, Inc.
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-4094
TRANSFER AGENT
Countrywide Fund Services, Inc.
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 Countrywide Tax-Free Trust.
<PAGE>
TABLE OF CONTENTS
================================================================================
Letter From the Chairman.......................................................2
Letter From the President......................................................3
Management Discussion and Analysis...........................................4-6
Statements of Assets and Liabilities........................................7-10
Statements of Operations...................................................11-14
Statements of Changes in Net Assets........................................15-18
Financial Highlights.......................................................19-26
Notes to Financial Statements..............................................27-33
Portfolios of Investments:
Tax-Free Money Fund...................................................34-35
California Tax-Free Money Fund........................................36-37
Ohio Tax-Free Money Fund..............................................38-42
Florida Tax-Free Money Fund...........................................43-45
Tax-Free Intermediate Term Fund.......................................46-49
Ohio Insured Tax-Free Fund............................................50-52
Kentucky Tax-Free Fund...................................................53
Notes to Portfolios of Investments............................................54
Report of Independent Public Accountants......................................55
<PAGE>
LETTER FROM THE CHAIRMAN
================================================================================
Photo of: Angelo R. Mozilo
Dear Shareholders:
Nearly 30 years ago David Loeb and I envisioned a full-service mortgage company
that would provide homeownership opportunities to people across the country.
Since our inception in 1969, Countrywide Credit Industries, Inc. has
strategically broadened its scope to offer a complete line of finance-related
products, and today, Countrywide is widely recognized as a highly skilled
provider of diversified products and services.
There are currently 17 funds offered through the Countrywide Family of Funds,
comprised of an innovative financial product line designed to meet the diverse
needs of our investors. As we continue to add new funds, shareholders will be
provided with an even broader range of investment choices. Our merger and
acquisition team at Countrywide Investments continually seeks out new
opportunities to grow the financial portfolio. By anticipating the needs of our
investors, Countrywide Investments also works diligently to provide numerous
shareholder services.
As the nation's largest independent residential mortgage lender and servicer,
Countrywide delivers the dream of homeownership to more than 1.8 million
customers. With 430 offices nationwide and more than 8,500 employees,
Countrywide remains focused on steady growth. The diverse line of Countrywide
funds is an important strategy which augments our mortgage lending and servicing
operations.
Countrywide is committed to the needs of our investors. We will continue to
search for and offer financial products and services that will grow shareholder
value. We look forward to the developing financial opportunities as we approach
the turn of the century.
Sincerely,
/s/ Angelo R. Mozilo
Angelo R. Mozilo
Chairman & Chief Executive Officer
<PAGE>
LETTER FROM THE PRESIDENT
================================================================================
Photo of: Robert H. Leshner
Dear Fellow Shareholders:
We are pleased to present the Countrywide Tax-Free Trust audited annual report
for the fiscal year ended June 30, 1998. This report provides financial data and
performance information for the Tax-Free Money Fund, California Tax-Free Money
Fund, Ohio Tax-Free Money Fund, Florida Tax-Free Money Fund, Tax-Free
Intermediate Term Fund, Ohio Insured Tax-Free Fund and Kentucky Tax-Free Fund.
These Funds represent the seven tax-free money market and bond products
currently offered among the 17 mutual funds that comprise the Countrywide Family
of Funds.
Economic growth continued to be strong during the past year. Consumer
confidence, combined with record low unemployment, led to a surge in consumer
spending and one of the strongest periods on record for the housing market. The
strong domestic picture was in steep contrast to the financial crisis in Asian
markets. As the year progressed, the effects of troubled Asian economies were
felt increasingly at home, suppressing the revenues and profits of many U.S.
companies, especially those with a significant presence in Asia.
The extraordinary mix of strong economic growth and disinflation in the U.S.
left fixed-income investors in a quandary. However, inspired by deteriorating
economic conditions abroad and remarkable performance domestically, interest
rates moved substantively lower during the fiscal year. Lower rates, combined
with the healthiest municipal balance sheets we have seen in years, spurred many
municipalities to access credit markets to fund new and existing projects. The
resulting glut of municipal supply pressured prices of tax-exempt bonds, leading
to underperformance relative to Treasury securities.
We believe the economy will continue to do well, with inflation remaining
subdued. As the year progresses, the fast pace of municipal issuance is likely
to slow, another positive sign for the tax-free market. In general, fixed-income
markets should benefit from continued disinflation and the prospect of a budget
surplus.
Countrywide Investments remains committed to providing products and services
that help investors meet their financial goals. Our success has been built on
the confidence investors have extended to us. We thank you for your support and
look forward to offering service to you in the future.
Sincerely,
/s/ Robert H. Leshner
Robert H. Leshner
President
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Overview
The performance of the domestic economy over the twelve months ended June 30,
1998 has been nothing short of remarkable. Economic growth continued at an above
trend pace with little or no signs of inflation. In fact, inflation, as measured
by the Consumer Price Index, declined from an annual rate of 2.3% on June 30,
1997 to 1.7% a year later. Employment growth, rising incomes and a very strong
stock market buoyed consumer confidence and led to the tremendous growth
experienced over the past year. After a rocky start, the performance of the bond
market was impressive as well. During the summer of 1997, bond yields
experienced somewhat of a roller coaster ride as investor focus shifted from the
low level of inflation to the robust domestic economy. However, in the months
that followed, the focus of investors shifted again to the financial crisis
unfolding in Asia. Bond investors became concerned that weakness in the Asian
economies would negatively impact our domestic economy and, in turn, allow
interest rates to move lower. This remained the dominant theme for the balance
of the fiscal year.
In the Treasury market, yields declined with the 30-year Treasury bond reaching
a near record low of 5.62% on June 30,1998. Yields on short and
intermediate-term Treasuries did not decline as much, however, as the
realization that the Federal Reserve would not lower interest rates provided a
floor for yields on short and intermediate-term Treasuries. Performance in the
municipal market lagged that of the Treasury market for much of the fiscal year.
Low interest rates and healthy financial positions spurred municipalities to
issue a near record amount of new debt. This burdensome new-issue supply caused
municipal bonds to underperform relative to Treasuries.
Tax-Free Intermediate Term Fund
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 conditions
of between three and ten years. To the extent consistent with the Fund's primary
objective, capital appreciation is a secondary objective. For the fiscal year
ended June 30, 1998, the Fund's total returns (excluding the impact of
applicable sales loads) were 5.63% and 4.85% for Class A shares and Class C
shares, respectively. The Lehman Brothers 5-Year Municipal G.O. Bond Index
returned 6.35% during the same period.
The Tax-Free Intermediate Term Fund performed comparably to the Lehman Brothers
5-Year Municipal G.O. Bond Index after giving consideration to associated
operating expenses of the Fund. Our focus in this Fund remains unchanged: to
provide high tax-free income while minimizing principal volatility. Given the
relative steepness of the municipal yield curve, we have recently been buying in
the ten to fifteen year maturity range where the investor is being compensated
for the additional risk.
Ohio Insured Tax-Free Fund
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. For the fiscal year
ended June 30, 1998, the Fund's total returns (excluding the impact of
applicable sales loads) were 7.03% and 6.24% for Class A shares and Class C
shares, respectively. The Lehman Brothers 15-Year Municipal G.O. Bond Index
returned 9.64% during the same period.
Performance of the Fund lagged the performance of the Lehman Brothers 15-Year
Municipal G.O. Bond Index during the first half of the fiscal year as the
general decline in interest rates, combined with the Fund's shorter maturity and
duration, hampered our ability to keep pace. In the second half of the fiscal
year, we selectively sold short-term prerefunded issues and invested the
proceeds in securities with maturities of twenty to twenty-five years and good
call protection. While this swap generated long-term capital gains in the Fund,
we felt it was necessary for two reasons. First, the issues that were sold had
realized most of their upside price potential and would only decline in price as
they approached maturity. Second, we felt the need to restructure the maturity
and duration characteristics of the portfolio in an effort to keep pace with its
benchmark on a total return basis. Going forward, we will continue to look for
those issues which, we believe, will provide the best combination of yield and
total return.
<PAGE>
Kentucky Tax-Free Fund
The Kentucky Tax-Free Fund seeks the highest level of interest income exempt
from federal and Kentucky income taxes, consistent with the protection of
capital. The Fund invests primarily in high and medium-quality Kentucky
municipal obligations. For the ten months ended June 30, 1998, the Fund's total
return (excluding the impact of applicable sales loads) was 6.05%, as compared
to 6.72% for the Lehman Brothers Municipal Bond Index during the same period.
In September 1997, we acquired the Kentucky Tax-Free Fund and assumed portfolio
management responsibility. At that time, the Fund was managed to maximize
liquidity and, as a result, had a weighted-average maturity comparable to that
of intermediate-term funds. After researching the market, we determined that a
long-term maturity structure would allow us to be more competitive with the
other Kentucky tax-free funds in the marketplace. During the first four months
of the fiscal period, we underperformed the Lehman Brothers Municipal Bond Index
due to the relatively short average maturity of the portfolio. In late 1997, we
began to extend the weighted-average maturity of the Fund to bring it more in
line with its benchmark and our peers. This enhanced the performance of the Fund
during the last six months of the period. We will continue to extend the average
maturity of the Fund by seeking issues with maturities of twenty to twenty-five
years and good call protection.
Outlook
Our outlook for the remainder of the year is constructive for the bond market.
With the exception of a larger trade deficit, there has been little impact on
the U.S. economy from the Asian financial crisis. Consumer demand, which has
been one of the main drivers of economic growth, remains strong. However, if the
stock market should falter, consumers will be less willing to spend more than
they are earning. A slowdown in consumption would likely reduce economic
activity, allowing interest rates to move lower. In addition, given that
municipals have lagged the Treasury market for much of the year, we believe that
municipal bonds offer investors added value as a fixed-income investment
alternative.
A Representation of the Graphic Material Contained in the June 30, 1998 Annual
Report for Countrywide Tax-Free Trust is set forth below:
Comparison of the Change in Value since June 30, 1988 of a $10,000 Investment
in the Tax-Free Intermediate Term Fund* and the Lehman Brothers 5-Year
Municipal G.O. Bond Index
LEHMAN BROTHERS 5-YEAR MUNICIPAL G.O. TAX-FREE INTERMEDIATE TERM FUND:
BOND INDEX:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
06/30/88 10,000 06/30/88 9,800
09/30/88 1.14% 10,114 09/30/88 1.14% 9,911
12/31/88 0.61% 10,176 12/31/88 1.16% 10,027
03/31/89 -0.28% 10,147 03/31/89 0.79% 10,106
06/30/89 4.70% 10,624 06/30/89 2.56% 10,364
09/30/89 1.11% 10,742 09/30/89 1.54% 10,524
12/31/89 2.99% 11,063 12/31/89 2.32% 10,769
03/31/90 0.48% 11,116 03/31/90 0.57% 10,830
06/30/90 2.24% 11,365 06/30/90 1.78% 11,023
09/30/90 1.06% 11,486 09/30/90 0.47% 11,075
12/31/90 3.32% 11,867 12/31/90 3.11% 11,419
03/31/91 2.15% 12,122 03/31/91 1.93% 11,638
06/30/91 1.75% 12,334 06/30/91 1.69% 11,836
09/30/91 3.55% 12,772 09/30/91 2.89% 12,178
12/31/91 3.35% 13,200 12/31/91 2.29% 12,457
03/31/92 -0.08% 13,190 03/31/92 0.48% 12,516
06/30/92 3.25% 13,618 06/30/92 2.87% 12,875
09/30/92 2.49% 13,957 09/30/92 2.19% 13,157
12/31/92 1.59% 14,179 12/31/92 1.98% 13,417
03/31/93 2.54% 14,539 03/31/93 3.40% 13,874
06/30/93 2.36% 14,883 06/30/93 2.78% 14,259
09/30/93 2.16% 15,204 09/30/93 3.17% 14,711
12/31/93 1.23% 15,391 12/31/93 1.19% 14,885
03/31/94 -3.15% 14,906 03/31/94 -3.37% 14,383
06/30/94 1.34% 15,106 06/30/94 0.82% 14,501
09/30/94 0.81% 15,228 09/30/94 0.57% 14,583
12/31/94 -0.33% 15,178 12/31/94 -0.91% 14,450
03/31/95 4.06% 15,794 03/31/95 4.35% 15,077
06/30/95 2.55% 16,197 06/30/95 2.29% 15,422
09/30/95 2.73% 16,639 09/30/95 2.07% 15,741
12/31/95 1.83% 16,944 12/31/95 2.43% 16,123
03/31/96 0.32% 16,999 03/31/96 -0.43% 16,054
06/30/96 0.43% 17,072 06/30/96 0.40% 16,119
09/30/96 1.63% 17,350 09/30/96 1.60% 16,377
12/31/96 2.18% 17,728 12/31/96 2.26% 16,747
03/31/97 -0.16% 17,700 03/31/97 -0.15% 16,722
06/30/97 2.49% 18,141 06/30/97 2.36% 17,116
09/30/97 2.19% 18,539 09/30/97 1.87% 17,435
12/31/97 1.84% 18,880 12/31/97 1.69% 17,729
03/31/98 1.17% 19,101 03/31/98 0.84% 17,878
06/30/98 1.01% 19,294 06/30/98 1.13% 18,080
*The chart above represents performance of Class A shares only, which will vary
from the performance of Class C shares based on the difference in loads and fees
paid by shareholders in the different classes. Fund inception was September 10,
1981, and the initial public offering of Class C shares commenced on February 1,
1994.
Tax-Free Intermediate Term Fund
Average Annual Total Returns
1 Year 5 Years 10 Years Since Inception
Class A 3.52% 4.44% 6.10% 6.29%
Class C 4.85% --- --- 3.74%
Past performance is not predictive of future performance.
<PAGE>
Comparison of the Change in Value since June 30, 1988 of a $10,000 Investment
in the Ohio Insured Tax-Free Fund* and the Lehman Brothers 15-Year Municipal
G.O. Bond Index
LEHMAN BROTHERS 15-YEAR MUNICIPAL
G.O. BOND INDEX: OHIO INSURED TAX-FREE FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
06/30/88 10,000 06/30/88 9,600
09/30/88 2.57% 10,257 09/30/88 2.15% 9,806
12/31/88 1.94% 10,456 12/31/88 2.24% 10,026
03/31/89 0.38% 10,496 03/31/89 0.79% 10,104
06/30/89 6.32% 11,159 06/30/89 4.27% 10,536
09/30/89 -0.43% 11,111 09/30/89 -0.04% 10,532
12/31/89 4.42% 11,602 12/31/89 3.71% 10,923
03/31/90 -0.01% 11,601 03/31/90 -0.10% 10,912
06/30/90 2.29% 11,867 06/30/90 1.90% 11,118
09/30/90 -0.41% 11,818 09/30/90 0.08% 11,127
12/31/90 4.42% 12,340 12/31/90 3.97% 11,569
03/31/91 1.85% 12,569 03/31/91 1.78% 11,775
06/30/91 1.96% 12,815 06/30/91 1.96% 12,006
09/30/91 4.09% 13,339 09/30/91 3.67% 12,446
12/31/91 3.13% 13,757 12/31/91 3.19% 12,842
03/31/92 0.54% 13,831 03/31/92 -0.06% 12,835
06/30/92 3.81% 14,358 06/30/92 4.35% 13,393
09/30/92 2.86% 14,769 09/30/92 1.95% 13,654
12/31/92 2.47% 15,133 12/31/92 2.29% 13,967
03/31/93 4.24% 15,775 03/31/93 3.78% 14,495
06/30/93 3.67% 16,354 06/30/93 3.70% 15,032
09/30/93 4.17% 17,036 09/30/93 3.86% 15,611
12/31/93 1.56% 17,302 12/31/93 0.73% 15,725
03/31/94 -6.78% 16,129 03/31/94 -5.28% 14,894
06/30/94 1.42% 16,358 06/30/94 0.50% 14,969
09/30/94 0.41% 16,425 09/30/94 0.17% 14,995
12/31/94 -1.75% 16,137 12/31/94 -0.77% 14,880
03/31/95 8.41% 17,494 03/31/95 6.59% 15,861
06/30/95 2.23% 17,885 06/30/95 1.69% 16,129
09/30/95 3.65% 18,537 09/30/95 2.33% 16,506
12/31/95 4.05% 19,288 12/31/95 4.45% 17,241
03/31/96 -0.95% 19,105 03/31/96 -2.15% 16,869
06/30/96 0.35% 19,172 06/30/96 0.44% 16,944
09/30/96 2.40% 19,632 09/30/96 2.38% 17,346
12/31/96 3.03% 20,227 12/31/96 2.44% 17,770
03/31/97 -0.07% 20,213 03/31/97 -0.81% 17,625
06/30/97 4.18% 21,057 06/30/97 3.21% 18,190
09/30/97 3.43% 21,780 09/30/97 2.42% 18,631
12/31/97 2.83% 22,396 12/31/97 2.24% 19,049
03/31/98 1.32% 22,692 03/31/98 0.89% 19,218
06/30/98 1.76% 23,091 06/30/98 1.31% 19,469
Ohio Insured Tax-Free Fund
Average Annual Total Returns
1 Year 5 Years 10 Years Since Inception
Class A 2.75% 4.45% 6.89% 7.68%
Class C 6.24% --- --- 4.33%
*The chart above represents performance of Class A shares only, which will vary
from the performance of Class C shares based on the difference in loads and fees
paid by shareholders in the different classes. Fund inception was April 1, 1985,
and the initial public offering of Class C shares commenced on November 1, 1993.
Past performance is not predictive of future performance.
<PAGE>
Comparison of the Change in Value Since Inception (September 27, 1995) of
a $10,000 Investment in the Kentucky Tax-Free Fund and the Lehman Brothers
Municipal Bond Index
LEHMAN BROTHERS MUNICIPAL
BOND INDEX: (w/ reinvested divds) KENTUCKY TAX-FREE FUND:
MONTHLY MONTHLY
DATE RETURN BALANCE DATE RETURN BALANCE
09/27/95 10,000 09/27/95 9,600
10/31/95 1.45% 10,145 10/31/95 2.42% 9,832
11/30/95 1.66% 10,313 11/30/95 1.90% 10,019
12/31/95 0.96% 10,412 12/31/95 1.23% 10,142
01/31/96 0.76% 10,492 01/31/96 0.65% 10,208
02/29/96 -0.68% 10,420 02/29/96 -0.73% 10,133
03/31/96 -1.28% 10,287 03/31/96 -1.20% 10,011
04/30/96 -0.28% 10,258 04/30/96 -0.17% 9,994
05/31/96 -0.04% 10,254 05/31/96 -0.01% 9,992
06/30/96 1.09% 10,366 06/30/96 -0.18% 9,974
07/31/96 0.91% 10,460 07/31/96 1.66% 10,140
08/31/96 -0.02% 10,458 08/31/96 0.17% 10,157
09/30/96 1.40% 10,604 09/30/96 1.00% 10,259
10/31/96 1.13% 10,724 10/31/96 0.94% 10,355
11/30/96 1.83% 10,920 11/30/96 1.53% 10,514
12/31/96 -0.42% 10,875 12/31/96 -0.34% 10,478
01/31/97 0.19% 10,895 01/31/97 0.26% 10,505
02/28/97 0.92% 10,995 02/28/97 0.89% 10,598
03/31/97 -1.33% 10,849 03/31/97 -0.75% 10,518
04/30/97 0.84% 10,940 04/30/97 0.53% 10,574
05/31/97 1.50% 11,104 05/31/97 1.03% 10,684
06/30/97 1.07% 11,223 06/30/97 0.72% 10,761
07/31/97 2.77% 11,534 07/31/97 1.90% 10,965
08/31/97 -0.94% 11,426 08/31/97 -0.55% 10,904
09/30/97 1.19% 11,562 09/30/97 1.13% 11,027
12/31/97 2.71% 11,875 12/31/97 2.06% 11,254
03/31/98 1.15% 12,012 03/31/98 1.02% 11,368
06/30/98 1.52% 12,194 06/30/98 1.72% 11,564
Kentucky Tax-Free Fund
Average Annual Total Returns
1 Year Since Inception
3.17% 5.40%
Past performance is not predictive of future performance.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998
======================================================================================
CALIFORNIA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
- --------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment securities:
At acquisition cost ................................... $36,750,235 $40,814,685
=========== ===========
At amortized cost ..................................... $36,707,536 $40,697,653
=========== ===========
At market value (Note 2) .............................. $36,707,536 $40,697,653
Cash ..................................................... 325,444 105,757
Interest receivable ...................................... 309,049 503,229
Receivable for securities sold ........................... 500,000 --
Other assets ............................................. 8,908 2,348
----------- -----------
TOTAL ASSETS ........................................ 37,850,937 41,308,987
----------- -----------
LIABILITIES
Dividends payable ........................................ 954 5,230
Payable for securities purchased ......................... 438,641 264,008
Payable to affiliates (Note 4) ........................... 23,780 23,446
Other accrued expenses and liabilities ................... 4,119 3,471
----------- -----------
TOTAL LIABILITIES ................................... 467,494 296,155
----------- -----------
NET ASSETS ............................................... $37,383,443 $41,012,832
=========== ===========
Net assets consist of:
Paid-in capital .......................................... $37,384,479 $41,014,335
Accumulated net realized losses from security transactions ( 1,036 ) ( 1,503 )
----------- -----------
Net assets ............................................... $37,383,443 $41,012,832
=========== ===========
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) (Note 5) ... 37,394,922 41,014,335
=========== ===========
Net asset value, offering price and redemption price
per share (Note 2) ..................................... $ 1.00 $ 1.00
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998
<CAPTION>
=======================================================================================================
OHIO FLORIDA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment securities:
At acquisition cost .................................................. $322,702,801 $ 68,259,809
============ ============
At amortized cost .................................................... $322,516,570 $ 68,180,277
============ ============
At market value (Note 2) ............................................. $322,516,570 $ 68,180,277
Cash .................................................................... -- 73,888
Interest receivable ..................................................... 2,701,856 489,684
Other assets ............................................................ 13,706 2,925
------------ ------------
TOTAL ASSETS ......................................................... 325,232,132 68,746,774
------------ ------------
LIABILITIES
Bank overdraft .......................................................... 49,333 --
Dividends payable ....................................................... 314,897 81,525
Payable for securities purchased ........................................ 4,103,340 5,102,873
Payable to affiliates (Note 4) .......................................... 161,437 27,839
Other accrued expenses and liabilities .................................. 20,614 7,841
------------ ------------
TOTAL LIABILITIES .................................................. 4,649,621 5,220,078
------------ ------------
NET ASSETS .............................................................. $320,582,511 $ 63,526,696
============ ============
Net assets consist of:
Paid-in capital ......................................................... $320,568,987 $ 63,504,408
Accumulated net realized gains from security transactions ............... 13,524 22,288
------------ ------------
Net assets .............................................................. $320,582,511 $ 63,526,696
============ ============
PRICING OF RETAIL SHARES
Net assets applicable to Retail shares .................................. $205,316,016 $ 14,367,574
============ ============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) (Note 5) ................................... 205,302,700 14,363,852
============ ============
Net asset value, offering price and redemption price per share (Note 2) . $ 1.00 $ 1.00
============ ============
PRICING OF INSTITUTIONAL SHARES
Net assets applicable to Institutional shares ........................... $115,266,495 $ 49,159,122
============ ============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) (Note 5) ................................... 115,266,287 49,140,556
============ ============
Net asset value, offering price and redemption price per share (Note 2) . $ 1.00 $ 1.00
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998
<CAPTION>
=====================================================================================================
TAX-FREE OHIO INSURED
INTERMEDIATE TAX-FREE
TERM FUND FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment securities:
At acquisition cost .................................................. $55,640,628 $67,563,484
=========== ===========
At amortized cost .................................................... $55,269,289 $67,480,117
============ ===========
At market value (Note 2) ............................................. $57,707,503 $72,161,280
Cash .................................................................... 196,257 21,861
Interest receivable ..................................................... 1,007,671 642,409
Receivable for capital shares sold ...................................... 57,052 246,525
Receivable for securities sold .......................................... 486,250 3,287,142
Other assets ............................................................ 13,430 4,090
----------- -----------
TOTAL ASSETS ......................................................... 59,468,163 76,363,307
----------- -----------
LIABILITIES
Dividends payable ....................................................... 39,217 74,833
Payable for capital shares redeemed ..................................... 262,082 24,084
Payable for securities purchased ........................................ 1,472,824 1,706,334
Payable to affiliates (Note 4) .......................................... 43,229 45,207
Other accrued expenses and liabilities .................................. 7,824 9,005
----------- -----------
TOTAL LIABILITIES .................................................... 1,825,176 1,859,463
----------- -----------
NET ASSETS .............................................................. $57,642,987 $74,503,844
=========== ===========
Net assets consist of:
Paid-in capital ......................................................... $56,200,982 $68,581,109
Accumulated net realized gains (losses) from security transactions ...... ( 996,209 ) 1,241,572
Net unrealized appreciation on investments .............................. 2,438,214 4,681,163
----------- -----------
Net assets .............................................................. $57,642,987 $74,503,844
=========== ===========
PRICING OF CLASS A SHARES
Net assets applicable to Class A shares ................................. $52,896,431 $69,289,212
=========== ===========
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) (Note 5) ................................... 4,757,501 5,599,945
=========== ===========
Net asset value and redemption price per share (Note 2) ................. $ 11.12 $ 12.37
=========== ===========
Maximum offering price per share (Note 2) ............................... $ 11.35 $ 12.89
=========== ===========
PRICING OF CLASS C SHARES
Net assets applicable to Class C shares ................................. $ 4,746,556 $ 5,214,632
=========== ===========
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) (Note 5) ................................... 426,820 421,552
=========== ===========
Net asset value, offering price and redemption price per share (Note 2) . $ 11.12 $ 12.37
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998
<CAPTION>
======================================================================
KENTUCKY
TAX-FREE
FUND
- ----------------------------------------------------------------------
<S> <C>
ASSETS
Investment securities:
At acquisition cost .................................. $7,400,843
==========
At amortized cost .................................... $7,363,205
==========
At market value (Note 2) ............................. $7,506,941
Cash .................................................... 39,027
Interest receivable ..................................... 131,806
Receivable from affiliates (Note 4) ..................... 1,527
Organization costs, net (Note 2) ........................ 14,288
Other assets ............................................ 667
----------
TOTAL ASSETS ......................................... 7,694,256
----------
LIABILITIES
Dividends payable ....................................... 15,160
Payable for securities purchased ........................ 344,806
Other accrued expenses and liabilities .................. 4,460
----------
TOTAL LIABILITIES .................................... 364,426
----------
NET ASSETS .............................................. $7,329,830
==========
Net assets consist of:
Paid-in capital ......................................... $7,072,889
Accumulated net realized gains from security transactions 113,205
Net unrealized appreciation on investments .............. 143,736
----------
Net assets .............................................. $7,329,830
==========
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) (Note 5) .. 700,507
==========
Net asset value and redemption price per share (Note 2) . $ 10.46
==========
Maximum offering price per share (Note 2) ............... $ 10.90
==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
For the Year Ended June 30, 1998
<CAPTION>
==================================================================================
CALIFORNIA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
- ----------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest income ..................................... $1,176,743 $1,546,509
---------- ----------
EXPENSES
Investment advisory fees (Note 4) ................... 150,790 210,813
Accounting services fees (Note 4) ................... 34,500 34,500
Transfer agent and shareholder services fees (Note 4) 29,891 25,510
Distribution expenses (Note 4) ...................... 10,767 19,803
Postage and supplies ................................ 19,032 7,693
Professional fees ................................... 7,379 8,179
Registration fees ................................... 8,777 2,151
Trustees' fees and expenses ......................... 4,835 4,835
Insurance expense ................................... 3,212 4,138
Pricing expenses .................................... 2,987 2,697
Custodian fees ...................................... 1,890 3,681
Reports to shareholders ............................. 2,085 1,970
Other expenses ...................................... 1,107 767
---------- ----------
TOTAL EXPENSES ......................................... 277,252 326,737
---------- ----------
NET INVESTMENT INCOME .................................. 899,491 1,219,772
---------- ----------
NET REALIZED GAINS FROM SECURITY TRANSACTIONS .......... 7 2,000
---------- ----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ............. $ 899,498 $1,221,772
========== ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
For the Year Ended June 30, 1998
<CAPTION>
==================================================================================================
OHIO FLORIDA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest income ................................................... $12,057,007 $ 2,062,394
----------- -----------
EXPENSES
Investment advisory fees (Note 4) ................................. 1,421,029 276,608
Distribution expenses, Retail class (Note 4) ...................... 435,722 39,096
Accounting services fees (Note 4) ................................. 69,223 48,500
Transfer agent and shareholder services fees, Retail class (Note 4) 73,358 12,000
Transfer agent and shareholder services fees,
Institutional class (Note 4) ...................................... 12,000 12,000
Postage and supplies .............................................. 53,096 10,520
Professional fees ................................................. 24,679 9,679
Insurance expense ................................................. 18,808 5,239
Custodian fees (Note 4) ........................................... 5,731 14,395
Pricing expenses .................................................. 7,609 3,886
Trustees' fees and expenses ....................................... 4,835 4,835
Registration fees ................................................. 7,530 1,034
Reports to shareholders ........................................... 4,928 487
Other expenses .................................................... 12,887 2,341
----------- -----------
TOTAL EXPENSES ....................................................... 2,151,435 440,620
Fees waived by the Adviser (Note 4) ............................... ( 46,680 ) ( 107,645 )
Institutional class expenses reimbursed by the Adviser (Note 4) ... ( 7,979 ) ( 7,114 )
----------- -----------
NET EXPENSES ......................................................... 2,096,776 325,861
----------- -----------
NET INVESTMENT INCOME ................................................ 9,960,231 1,736,533
----------- -----------
NET REALIZED GAINS FROM SECURITY TRANSACTIONS ........................ 573 23,116
----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ........................... $ 9,960,804 $ 1,759,649
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
For the Year Ended June 30, 1998
<CAPTION>
================================================================================================
TAX-FREE OHIO INSURED
INTERMEDIATE TAX-FREE
TERM FUND FUND
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest income ................................................. $ 3,326,159 $ 4,313,747
----------- -----------
EXPENSES
Investment advisory fees (Note 4) ............................... 302,947 378,345
Distribution expenses, Class A (Note 4) ......................... 71,805 18,754
Distribution expenses, Class C (Note 4) ......................... 33,170 29,140
Transfer agent and shareholder services fees, Class A (Note 4) .. 59,018 34,859
Transfer agent and shareholder services fees, Class C (Note 4) .. 12,000 12,000
Accounting services fees (Note 4) ............................... 52,500 52,500
Postage and supplies ............................................ 46,573 25,209
Pricing expenses ................................................ 12,659 15,165
Professional fees ............................................... 9,679 10,679
Registration fees, Common ....................................... 1,768 192
Registration fees, Class A ...................................... 6,093 3,344
Registration fees, Class C ...................................... 4,279 1,905
Insurance expense ............................................... 5,752 6,566
Custodian fees .................................................. 4,823 6,017
Trustees' fees and expenses ..................................... 4,835 4,835
Reports to shareholders ......................................... 5,266 3,265
Other expenses .................................................. 3,885 4,600
----------- -----------
TOTAL EXPENSES ..................................................... 637,052 607,375
Class A expenses reimbursed by the Adviser (Note 4) ............. -- (948)
----------- -----------
NET EXPENSES ....................................................... 637,052 606,427
----------- -----------
NET INVESTMENT INCOME .............................................. 2,689,107 3,707,320
----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions ................... 504,427 1,576,938
Net change in unrealized appreciation/depreciation on investments 120,496 (19,066)
----------- -----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ................... 624,923 1,557,872
----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ......................... $ 3,314,030 $ 5,265,192
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
For the Periods Ended June 30, 1998 and August 31, 1997
<CAPTION>
=========================================================================================
KENTUCKY TAX-FREE FUND
Ten Months Year
Ended Ended
June 30, August 31,
1998(A) 1997
- -----------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest income ................................................ $337,659 $626,947
-------- --------
EXPENSES
Investment advisory fees (Note 4) .............................. 32,172 47,946
Accounting services fees (Note 4) .............................. 28,000 36,000
Transfer agent fees (Note 4) ................................... 9,830 29,221
Professional fees .............................................. 5,821 25,286
Shareholder services fees (Note 4) ............................. -- 29,966
Administration fees (Note 4) ................................... -- 24,866
Amortization of organization costs (Note 2) .................... 5,296 6,351
Pricing expenses ............................................... 3,330 6,443
Custodian fees ................................................. 2,839 2,150
Distribution expenses (Note 4) ................................. 4,776 --
Trustees' fees and expenses .................................... 3,562 1,193
Reports to shareholders ........................................ 592 2,199
Postage and supplies ........................................... 2,279 --
Insurance expense .............................................. 716 1,367
Registration fees .............................................. 149 238
Other expenses ................................................. 454 1,623
-------- --------
TOTAL EXPENSES .................................................... 99,816 214,849
Fees waived and expenses reimbursed (Note 4) ................... ( 68,508 )( 112,585)
-------- --------
NET EXPENSES ...................................................... 31,308 102,264
-------- --------
NET INVESTMENT INCOME ............................................. 306,351 524,683
-------- --------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions ................... 109,080 6,913
Net change in unrealized appreciation/depreciation on investments 51,636 351,842
-------- --------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS .................. 160,716 358,755
-------- --------
NET INCREASE IN NET ASSETS FROM OPERATIONS ........................ $467,067 $883,438
======== ========
(A) Effective as of the close of business on August 29, 1997, the Kentucky Tax-Free Fund was reorganized
and the fiscal year-end of the Fund, subsequent to August 31, 1997, was changed to June 30 (Note 7).
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended June 30, 1998 and 1997
<CAPTION>
=============================================================================================================
CALIFORNIA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
Year Year Year Year
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income ................. $ 899,491 $ 850,627 $ 1,219,772 $ 1,106,884
Net realized gains (losses) from
security transactions ............... 7 7 2,000 (1,923)
------------- ------------- ------------- -------------
Net increase in net assets from operations 899,498 850,634 1,221,772 1,104,961
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ............ (899,491) (850,627) (1,219,772) (1,106,884)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE
TRANSACTIONS (NOTE 5):
Proceeds from shares sold ............. 63,515,504 59,171,857 178,294,681 166,476,608
Net asset value of shares issued in
reinvestment of distributions
to shareholders ................... 884,700 828,537 1,138,976 1,029,746
Payments for shares redeemed .......... (57,142,444) (55,217,113) (170,609,136) (171,440,181)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
from capital share transactions ....... 7,257,760 4,783,281 8,824,521 (3,933,827)
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS ......................... 7,257,767 4,783,288 8,826,521 (3,935,750)
NET ASSETS:
Beginning of year ..................... 30,125,676 25,342,388 32,186,311 36,122,061
------------- ------------- ------------- -------------
End of year ........................... $ 37,383,443 $ 30,125,676 $ 41,012,832 $ 32,186,311
============= ============= ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended June 30, 1998 and 1997
<CAPTION>
===================================================================================================================
OHIO FLORIDA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
Year Year Year Year
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income ....................... $ 9,960,231 $ 7,733,755 $ 1,736,533 $ 1,386,725
Net realized gains from security transactions 573 46 23,116 370
------------- ------------- ------------- -------------
Net increase in net assets from operations ..... 9,960,804 7,733,801 1,759,649 1,387,095
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Retail .......... (6,053,491) (6,297,760) (586,926) (814,499)
From net investment income, Institutional ... (3,906,740) (1,435,995) (1,149,607) (572,226)
------------- ------------- ------------- -------------
Decrease in net assets from distributions to
shareholders ................................ (9,960,231) (7,733,755) (1,736,533) (1,386,725)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE
TRANSACTIONS (NOTE 5):
RETAIL
Proceeds from shares sold ................... 443,151,458 572,337,891 27,490,101 57,130,891
Net asset value of shares issued in
reinvestment of distributions
to shareholders ........................... 5,971,760 4,862,899 577,444 675,817
Payments for shares redeemed ................ (410,526,902) (650,804,392) (36,138,595) (64,279,383)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
from Retail share transactions .............. 38,596,316 (73,603,602) (8,071,050) (6,472,675)
------------- ------------- ------------- -------------
INSTITUTIONAL
Proceeds from shares sold ................... 303,525,174 216,396,635 129,691,125 38,407,914
Net asset value of shares issued in
reinvestment of distributions
to shareholders ........................... 1,880 -- 106,367 --
Payments for shares redeemed ................ (285,849,088) (118,808,315) (100,005,326) (38,204,284)
------------- ------------- ------------- -------------
Net increase in net assets
from Institutional share transactions ....... 17,677,966 97,588,320 29,792,166 203,630
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS .............................. 56,274,855 23,984,764 21,744,232 (6,268,675)
NET ASSETS:
Beginning of year ........................... 264,307,656 240,322,892 41,782,464 48,051,139
------------- ------------- ------------- -------------
End of year ................................. $ 320,582,511 $ 264,307,656 $ 63,526,696 $ 41,782,464
============= ============= ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended June 30, 1998 and 1997
<CAPTION>
===============================================================================================================
TAX-FREE OHIO INSURED
INTERMEDIATE TAX-FREE
TERM FUND FUND
Year Year Year Year
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income ................... $ 2,689,107 $ 3,097,197 $ 3,707,320 $ 3,949,356
Net realized gains from security
transactions .......................... 504,427 120,146 1,576,938 134,212
Net change in unrealized appreciation/
depreciation on investments ........... 120,496 896,811 (19,066) 1,565,046
------------- ------------- ------------- -------------
Net increase in net assets from operations . 3,314,030 4,114,154 5,265,192 5,648,614
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A ..... (2,502,901) (2,894,253) (3,489,518) (3,767,741)
From net investment income, Class C ..... (186,206) (202,944) (217,802) (181,615)
From net realized gains, Class A ........ -- -- (434,273) --
From net realized gains, Class C ........ -- -- (34,811) --
------------- ------------- ------------- -------------
Decrease in net assets from distributions to
shareholders ............................ (2,689,107) (3,097,197) (4,176,404) (3,949,356)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE
TRANSACTIONS (NOTE 5):
CLASS A
Proceeds from shares sold ............... 12,407,637 12,588,991 140,842,715 171,413,856
Net asset value of shares issued in
reinvestment of distributions
to shareholders ....................... 2,009,499 2,298,321 2,921,236 2,840,761
Payments for shares redeemed ............ (20,581,067) (25,016,687) (146,316,005) (180,995,415)
------------- ------------- ------------- -------------
Net decrease in net assets
from Class A share transactions ......... (6,163,931) (10,129,375) (2,552,054) (6,740,798)
------------- ------------- ------------- -------------
CLASS C
Proceeds from shares sold ............... 1,781,236 1,847,102 2,551,977 1,641,830
Net asset value of shares issued in
reinvestment of distributions
to shareholders ....................... 173,075 191,889 209,923 159,120
Payments for shares redeemed ............ (2,418,483) (2,193,811) (2,249,977) (1,214,900)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
from Class C share transactions ......... (464,172) (154,820) 511,923 586,050
------------- ------------- ------------- -------------
TOTAL DECREASE IN NET ASSETS ............... (6,003,180) (9,267,238) (951,343) (4,455,490)
NET ASSETS:
Beginning of year ....................... 63,646,167 72,913,405 75,455,187 79,910,677
------------- ------------- ------------- -------------
End of year ............................. $ 57,642,987 $ 63,646,167 $ 74,503,844 $ 75,455,187
============= ============= ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended June 30, 1998 and August 31, 1997 and 1996
<CAPTION>
====================================================================================================
KENTUCKY TAX-FREE FUND
Ten Months Year Period
Ended Ended Ended
June 30, August 31, August 31,
1998(A) 1997 1996(B)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FROM OPERATIONS:
Net investment income ............................ $ 306,351 $ 524,683 $ 714,832
Net realized gains (losses) from
security transactions .......................... 109,080 6,913 (2,788)
Net change in unrealized appreciation/depreciation
on investments ................................. 51,636 351,842 (259,742)
------------ ------------ ------------
Net increase in net assets from operations .......... 467,067 883,438 452,302
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ....................... (306,351) (524,683) (828,883)
Distributions in excess of net investment income . -- (100,598) --
------------ ------------ ------------
Decrease in net assets from distributions
to shareholders ................................... (306,351) (625,281) (828,883)
------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
Proceeds from shares sold ........................ 458,492 1,302,552 28,751,437
Net asset value of shares issued in
reinvestment of distributions to shareholders .. 157,294 303,297 559,139
Payments for shares redeemed ..................... (1,884,304) (9,266,863) (13,093,506)
------------ ------------ ------------
Net increase (decrease) in net assets from
capital share transactions ........................ (1,268,518) (7,661,014) 16,217,070
------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............. (1,107,802) (7,402,857) 15,840,489
NET ASSETS:
Beginning of period .............................. 8,437,632 15,840,489 --
------------ ------------ ------------
End of period .................................... $ 7,329,830 $ 8,437,632 $ 15,840,489
============ ============ ============
(A) Effective as the close of business on August 29, 1997, the Kentucky Tax-Free Fund was reorganized
and the fiscal year-end of the Fund, subsequent to August 31, 1997, was changed to June 30 (Note 7).
(B) Represents the period from the commencement of operations (September 27, 1995) through August 31, 1996.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
TAX-FREE MONEY FUND
FINANCIAL HIGHLIGHTS
=============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Year
=============================================================================================================
Year Ended June 30,
- -------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year............ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- --------- ---------- --------- ----------
Net investment income........................... 0.030 0.029 0.031 0.030 0.021
---------- --------- ---------- --------- ----------
Dividends from net investment income............ (0.030) (0.029) (0.031) (0.030) (0.021)
---------- --------- ---------- --------- ----------
Net asset value at end of year.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========= ========== ========= ==========
Total return ................................... 3.03% 2.89% 3.15% 3.07% 2.12%
========== ========= ========== ========= ==========
Net assets at end of year (000's) .............. $ 37,383 $ 30,126 $ 25,342 $ 26,692 $31,168
========== ========= ========== ========= ==========
Ratio of expenses to average net assets......... 0.92% 0.99% 0.99% 0.99% 0.99%
Ratio of net investment income to average
net assets................................... 2.98% 2.85% 3.09% 3.00% 2.09%
</TABLE>
<PAGE>
<TABLE>
CALIFORNIA TAX-FREE MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
=============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Year
=============================================================================================================
Year Ended June 30,
- -------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year............ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- --------- ---------- --------- ----------
Net investment income........................... 0.029 0.028 0.029 0.029 0.019
---------- --------- ---------- --------- ----------
Dividends from net investment income............ (0.029) (0.028) (0.029) (0.029) (0.019)
---------- --------- ---------- --------- ----------
Net asset value at end of year.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========= ========== ========= ==========
Total return ................................... 2.94% 2.81% 2.95% 2.95% 1.93%
========== ========= ========== ========= ==========
Net assets at end of year (000's) .............. $ 41,013 $ 32,186 $ 36,122 $ 19,525 $24,508
========== ========= ========== ========= ==========
Ratio of expenses to average net assets(A) .... 0.77% 0.80% 0.80% 0.70% 0.60%
Ratio of net investment income to average
net assets.................................... 2.89% 2.76% 2.88% 2.83% 1.90%
(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% and 0.86% for the years ended June 30, 1996, 1995 and 1994, respectively.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
OHIO TAX-FREE MONEY FUND - RETAIL
FINANCIAL HIGHLIGHTS
<CAPTION>
============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Year
============================================================================================================
Year Ended June 30,
- ------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year............ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- --------- ---------- --------- ----------
Net investment income........................... 0.030 0.030 0.031 0.031 0.020
---------- --------- ---------- --------- ----------
Dividends from net investment income ........... (0.030) (0.030) (0.031) (0.031) (0.020)
---------- --------- ---------- --------- ----------
Net asset value at end of year.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========= ========== ========= ==========
Total return.................................... 3.07% 2.99% 3.14% 3.12% 1.99%
========== ========= ========== ========= ==========
Net assets at end of year (000's) .............. $205,316 $166,719 $240,323 $226,606 $213,001
========== ========= ========== ========= ==========
Ratio of expenses to average net assets(A) ..... 0.75% 0.75% 0.75% 0.74% 0.73%
Ratio of net investment income to average
net assets.................................... 3.02% 2.93% 3.09% 3.08% 1.97%
(A) Absent fee waivers by the Adviser, the ratio of expenses to average net assets would have been 0.76% and 0.77%
for the years ended June 30, 1998 and 1997, respectively (Note 4).
</TABLE>
<PAGE>
<TABLE>
OHIO TAX-FREE MONEY FUND - INSTITUTIONAL
FINANCIAL HIGHLIGHTS
<CAPTION>
==================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
==================================================================================
Year Period
Ended Ended
June 30, June 30,
1998 1997(A)
- ----------------------------------------------------------------------------------
<S> <C> <C>
Net asset value at beginning of period ............. $ 1.000 $ 1.000
------------ -----------
Net investment income .............................. 0.033 0.016
------------ -----------
Dividends from net investment income ............... (0.033) (0.016)
------------ -----------
Net asset value at end of period ................... $ 1.000 $ 1.000
============ ===========
Total return ....................................... 3.33% 3.31%(C)
============ ===========
Net assets at end of period (000's) ................ $ 115,266 $ 97,589
============ ===========
Ratio of expenses to average net assets(B) ......... 0.50% 0.50%(C)
Ratio of net investment income to average net assets 3.27% 3.28%(C)
(A) Represents the period from the initial public offering of Institutional shares (January 7, 1997) through June 30, 1997.
(B) Absent fee waivers and/or expense reimbursements by the Adviser, the ratio of expenses to average net assets
would have been 0.52% and 0.56%(C) for the periods ended June 30, 1998 and 1997, respectively (Note 4).
(C) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FLORIDA TAX-FREE MONEY FUND - RETAIL
FINANCIAL HIGHLIGHTS
<CAPTION>
============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Year
============================================================================================================
Year Ended June 30,
- ------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year ........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- --------- ---------- --------- ---------
Net investment income........................... 0.030 0.029 0.032 0.031 0.021
---------- --------- ---------- --------- ---------
Dividends from net investment income ........... (0.030) ( 0.029) ( 0.032) ( 0.031 ) (0.021)
---------- --------- ---------- --------- ---------
Net asset value at end of year ................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========= ========== ========= =========
Total return ................................... 3.03% 2.90% 3.29% 3.17% 2.11%
========== ========= ========== ========= =========
Net assets at end of year (000's) .............. $ 14,368 $ 22,434 $ 28,906 $ 24,119 $26,276
========== ========= ========== ========= =========
Ratio of expenses to average net assets(B) .... 0.75% 0.75% 0.61% 0.66% 0.58%
Ratio of net investment income to average
net assets.................................... 2.98% 2.85% 3.24% 3.12% 2.10%
(A) Represents the period from the initial public offering of Retail shares (November 13, 1992) through June 30, 1993.
(B) Absent fee waivers and/or expense reimbursements by the Adviser, the ratio of expenses to average net assets would
have been 0.95%, 0.94%, 0.80%, 0.80% and 0.81% for the years ended June 30, 1998, 1997, 1996, 1995 and 1994,
respectively (Note 4).
</TABLE>
<PAGE>
<TABLE>
FLORIDA TAX-FREE MONEY FUND - INSTITUTIONAL
FINANCIAL HIGHLIGHTS
<CAPTION>
============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
============================================================================================================
Period
Year Ended June 30, Ended
June 30,
1998 1997 1996(A)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period ................. $ 1.000 $ 1.000 $ 1.000
-------------- --------------- ---------------
Net investment income................................... 0.032 0.031 0.003
-------------- --------------- ---------------
Dividends from net investment income ................... (0.032) (0.031) (0.003)
-------------- --------------- ---------------
Net asset value at end of period ....................... $ 1.000 $ 1.000 $ 1.000
============== =============== ===============
Total return............................................ 3.28% 3.16% 3.03%(C)
============== =============== ===============
Net assets at end of period (000's) .................... $ 49,159 $ 19,349 $ 19,145
============== =============== ===============
Ratio of net expenses to average net assets(B) ........ 0.50% 0.50% 0.50%(C)
Ratio of net investment income to average net assets.... 3.23% 3.11% 3.03%(C)
(A) Represents the period from the initial public offering of Institutional shares (May 29, 1996) through June 30, 1996.
(B) Absent fee waivers and/or expense reimbursements by the Adviser, the ratio of expenses to average net assets would have
been 0.71%, 0.79% and 0.87%(C) for the periods ended June 30, 1998, 1997 and 1996, respectively (Note 4).
(C) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
TAX-FREE INTERMEDIATE TERM FUND - CLASS A
FINANCIAL HIGHLIGHTS
<CAPTION>
============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Year
============================================================================================================
Year Ended June 30,
- ------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year............ $ 11.01 $ 10.85 $ 10.86 $ 10.69 $ 10.98
---------- --------- ---------- --------- ---------
Income from investment operations:
Net investment income ....................... 0.50 0.50 0.50 0.49 0.48
Net realized and unrealized gains (losses)
on investments............................. 0.11 0.16 (0.01) 0.17 (0.29)
---------- --------- ---------- --------- ----------
Total from investment operations ............... 0.61 0.66 0.49 0.66 0.19
---------- --------- ---------- --------- ----------
Dividends from net investment income ........... (0.50) (0.50) (0.50) (0.49) (0.48)
---------- --------- ---------- --------- ----------
Net asset value at end of year.................. $ 11.12 $ 11.01 $ 10.85 $ 10.86 $ 10.69
========== ========= ========== ========= ==========
Total return(A) ................................ 5.63% 6.19% 4.51% 6.36% 1.70%
========== ========= ========== ========= ==========
Net assets at end of year (000's) .............. $ 52,896 $ 58,485 $ 67,675 $ 81,140 $106,472
========== ========= ========== ========= ==========
Ratio of expenses to average net assets ........ 0.99% 0.99% 0.99% 0.99% 0.99%
Ratio of net investment income to average
net asset..................................... 4.50% 4.55% 4.52% 4.59% 4.35%
Portfolio turnover rate......................... 36% 30% 37% 32% 46%
(A) Total returns shown exclude the effect of applicable sales loads.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
TAX-FREE INTERMEDIATE TERM FUND - CLASS C
FINANCIAL HIGHLIGHTS
<CAPTION>
=============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
=============================================================================================================
Period
Year Ended June 30, Ended
June 30,
1998 1997 1996 1995 1994(A)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period.......... $ 11.01 $ 10.85 $ 10.86 $ 10.69 $ 11.27
---------- --------- ---------- --------- ----------
Income from investment operations:
Net investment income........................ 0.42 0.43 0.44 0.44 0.20
Net realized and unrealized gains (losses)
on investments............................. 0.11 0.16 ( 0.01) 0.17 ( 0.58 )
---------- --------- ---------- --------- ----------
Total from investment operations................ 0.53 0.59 0.43 0.61 ( 0.38 )
---------- --------- ---------- --------- ----------
Dividends from net investment income............ ( 0.42) ( 0.43) ( 0.44) ( 0.44 ) ( 0.20 )
---------- --------- ---------- --------- ----------
Net asset value at end of period................ $ 11.12 $ 11.01 $ 10.85 $ 10.86 $ 10.69
========== ========= ========== ========= ==========
Total return(B) ................................ 4.85% 5.49% 4.00% 5.82% ( 8.28%)(D)
========== ========= ========== ========= ==========
Net assets at end of period (000's)............. $ 4,747 $ 5,161 $ 5,239 $ 4,814 $ 3,084
========== ========= ========== ========= ==========
Ratio of expenses to average net assets(C) ..... 1.74% 1.65% 1.49% 1.49% 1.45%(D)
Ratio of net investment income to average
net assets.................................... 3.75% 3.89% 4.02% 4.08% 3.79%(D)
Portfolio turnover rate......................... 36% 30% 37% 32% 46%(D)
(A) Represents the period from the initial public offering of Class C shares (February 1, 1994) through June 30, 1994.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Absent fee waivers and/or expense reimbursements by the Adviser, the ratio of expenses to average net assets would have
been 1.75%(D) for the period ended June 30, 1994.
(D) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
OHIO INSURED TAX-FREE FUND - CLASS A
FINANCIAL HIGHLIGHTS
<CAPTION>
=============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Year
=============================================================================================================
Year Ended June 30,
- -------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year............ $ 12.22 $ 11.97 $ 11.99 $ 11.74 $ 12.41
---------- --------- ---------- --------- ----------
Income from investment operations:
Net investment income ....................... 0.61 0.61 0.62 0.63 0.61
Net realized and unrealized gains (losses)
on investments............................. 0.23 0.25 ( 0.02) 0.25 ( 0.64 )
---------- --------- ---------- --------- ----------
Total from investment operations ............... 0.84 0.86 0.60 0.88 ( 0.03 )
---------- --------- ---------- --------- ----------
Less distributions:
Dividends from net investment income ........ ( 0.61) ( 0.61) ( 0.62) ( 0.63 ) ( 0.61 )
Distributions from net realized gains........ ( 0.08) -- -- -- ( 0.03 )
---------- --------- ---------- --------- ----------
Total distributions ............................ ( 0.69) ( 0.61) ( 0.62) ( 0.63 ) ( 0.64 )
---------- --------- ---------- --------- ----------
Net asset value at end of year.................. $ 12.37 $ 12.22 $ 11.97 $ 11.99 $ 11.74
========== ========= ========== ========= ==========
Total return(A) ............................... 7.03% 7.36% 5.05% 7.75% ( 0.41% )
========== ========= ========== ========= ==========
Net assets at end of year (000's) .............. $ 69,289 $ 70,816 $ 75,938 $ 71,393 $79,889
========== ========= ========== ========= ==========
Ratio of expenses to average net assets(B) .... 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment income to average
net assets.................................... 4.95% 5.05% 5.12% 5.35% 4.94%
Portfolio turnover rate......................... 41% 33% 46% 29% 45%
(A) Total returns shown exclude 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% for the year ended June 30, 1995.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
OHIO INSURED TAX-FREE FUND - CLASS C
FINANCIAL HIGHLIGHTS
<CAPTION>
============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
============================================================================================================
Period
Year Ended June 30, Ended
June 30,
1998 1997 1996 1995 1994(A)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period.......... $ 12.22 $ 11.97 $ 12.00 $ 11.74 $12.62
---------- --------- ---------- --------- ----------
Income from investment operations:
Net investment income........................ 0.52 0.53 0.56 0.57 0.36
Net realized and unrealized gains (losses)
on investments............................. 0.23 0.25 ( 0.03) 0.26 ( 0.85 )
---------- --------- ---------- --------- ----------
Total from investment operations................ 0.75 0.78 0.53 0.83 ( 0.49 )
---------- --------- ---------- -------- ----------
Less distributions:
Dividends from net investment income......... ( 0.52) ( 0.53) ( 0.56) ( 0.57 ) ( 0.36 )
Distributions from net realized gains........ ( 0.08) -- -- -- ( 0.03 )
---------- --------- ---------- --------- ----------
Total distributions............................. ( 0.60) ( 0.53) ( 0.56) ( 0.57 ) ( 0.39 )
---------- --------- --------- --------- ----------
Net asset value at end of period................ $ 12.37 $ 12.22 $ 11.97 $ 12.00 $11.74
========== ========= ========== ========= ==========
Total return(B) ................................ 6.24% 6.65% 4.44% 7.31% ( 6.05%)(D)
========== ========= ========== ========= ==========
Net assets at end of period (000's)............. $ 5,215 $ 4,639 $ 3,972 $ 4,165 $ 2,659
========== ========= ========= ========= =========
Ratio of expenses to average net assets(C) ..... 1.50% 1.42% 1.25% 1.25% 1.22% (D)
Ratio of net investment income to average
net assets.................................... 4.20% 4.37% 4.62% 4.84% 4.09% (D)
Portfolio turnover rate......................... 41% 33% 46% 29% 45% (D)
(A) Represents the period from the initial public offering of Class C shares (November 1, 1993) through June 30, 1994.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) 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%(D) for the periods ended June 30, 1995 and 1994, respectively.
(D) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
KENTUCKY TAX-FREE FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
==========================================================================================================
Per Share Data For a Share Outstanding Throughout Each Period
==========================================================================================================
Ten Months Year Period
Ended Ended Ended
June 30, August 31, August 31,
1998(A) 1997 1996(B)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period.................. $ 10.26 $ 10.06 $ 10.00
-------------- --------------- ---------------
Income from investment operations:
Net investment income................................ 0.41 0.44 0.51(C)
Net realized and unrealized gains on investments..... 0.20 0.28 0.06
-------------- --------------- ---------------
Total from investment operations........................ 0.61 0.72 0.57
-------------- --------------- ---------------
Less distributions:
Dividends from net investment income................. ( 0.41) ( 0.44 ) ( 0.51 )
Distributions in excess of net investment income..... -- ( 0.08 ) --
-------------- --------------- ---------------
Total distributions..................................... ( 0.41) ( 0.52 ) ( 0.51 )
-------------- --------------- ---------------
Net asset value at end of period........................ $ 10.46 $ 10.26 $ 10.06
============== =============== ===============
Total return(D) ........................................ 7.29%(F) 7.36% 5.80%
============== =============== ===============
Net assets at end of period (000's)..................... $ 7,330 $ 8,438 $ 15,840
============== =============== ===============
Ratio of expenses to average net assets(E) ............. 0.49%(F) 0.85% 0.82%(F)
Ratio of net investment income to average net assets.... 4.75%(F) 4.35% 5.30%(F)
Portfolio turnover rate................................. 61%(F) 0% 145%
(A) Effective as of the close of business on August 29, 1997, the Kentucky Tax-Free Fund was reorganized and the
fiscal year-end of the Fund, subsequent to August 31, 1997, was changed to June 30 (Note 7).
(B) Represents the period from the commencement of operations (September 27, 1995) through August 31, 1996.
(C) Calculated using weighted average shares outstanding during the period.
(D) Total returns shown exclude the effect of applicable sales loads.
(E) Absent fee waivers and/or expense reimbursements, the ratio of expenses to average net assets would have been
1.55%(F), 1.78% and 1.65%(F) for the periods ended June 30, 1998 and August 31, 1997 and 1996, respectively (Note 4).
(F) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
================================================================================
1. Organization
The Tax-Free Money Fund, the California Tax-Free Money Fund, the Ohio Tax-Free
Money Fund, the Florida Tax-Free Money Fund, the Tax-Free Intermediate Term
Fund, the Ohio Insured Tax-Free Fund and the Kentucky Tax-Free Fund
(collectively, the Funds) are each a separate series of shares of Countrywide
Tax-Free Trust (the Trust). The Trust is registered under the Investment Company
Act of 1940 (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 each Fund. The Kentucky
Tax-Free Fund was originally organized as a series of Trans Adviser Funds, Inc.
(Note 7).
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 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 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 Kentucky Tax-Free Fund seeks the highest level of interest income exempt
from federal and Kentucky income taxes, consistent with protection of capital.
The Fund invests primarily in high and medium-quality Kentucky municipal
obligations.
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% for a one-year period and a distribution fee of up to
1% of average daily net assets of each Fund). 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 will cause Class C shares to have a higher expense
ratio and to pay lower dividends than those related to 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 Ohio Tax-Free Money Fund and the Florida Tax-Free Money Fund each offer two
classes of shares: Retail shares (sold subject to a distribution fee of up to
0.25% of average daily net assets of each Fund) and 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 will cause Retail shares to have a higher expense ratio and to pay
lower dividends than those related to 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 periods ended June 30, 1998, referred to within the Notes to Financial
Statements, represent the year then ended, except for the Kentucky Tax-Free Fund
which represents the ten months then ended. The following is a summary of the
Trust's significant accounting policies:
Security valuation -- Tax-Free Money Fund, California Tax-Free Money Fund, Ohio
Tax-Free Money Fund and Florida Tax-Free Money Fund securities are valued on an
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, Ohio Insured Tax-Free Fund and Kentucky 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 Tax-Free Money Fund, the
California Tax-Free Money Fund and the Kentucky Tax-Free Fund is calculated
daily by dividing the total value of a Fund's assets, less liabilities, by its
number of shares outstanding. The net asset value per share of each class of
shares of the Ohio Tax-Free Money Fund, the Florida Tax-Free Money Fund, 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 offering price per share of the Tax-Free Money Fund, the California Tax-Free
Money Fund, the Ohio Tax-Free Money Fund and the Florida Tax-Free Money Fund is
equal to the net asset value per share. 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 and shares of the Kentucky 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 each Fund, including each class of shares with
respect to the Ohio Tax-Free Money Fund, the Florida Tax-Free Money Fund, the
Tax-Free Intermediate Term Fund and the Ohio Insured Tax-Free Fund, is equal to
net asset value per share. However, Class C shares of the Tax-Free Intermediate
Term Fund and the Ohio Insured Tax-Free 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 -- Dividends 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 Ohio Tax-Free
Money Fund, the 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.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
Organization costs -- Costs incurred by the Kentucky Tax-Free Fund in connection
with the organization and registration of shares, net of certain expenses, have
been capitalized and are being amortized on a straight-line basis over a five
year period beginning with the Fund's commencement of operations.
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 income and
expenses during the reporting period. Actual results could differ from those
estimates.
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 June 30, 1998:
<TABLE>
<CAPTION>
Tax-Free Ohio Insured Kentucky
Intermediate Tax-Free Tax-Free
Term Fund Fund Fund
<S> <C> <C> <C>
Gross unrealized appreciation........................... $ 2,440,258 $ 4,683,745 $ 144,927
Gross unrealized depreciation........................... (2,044) (2,582) (1,191)
-------------- --------------- ---------------
Net unrealized appreciation............................. $ 2,438,214 $ 4,681,163 $ 143,736
============== =============== ===============
</TABLE>
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, 1998, the Tax-Free Intermediate Term Fund had capital loss
carryforwards for federal income tax purposes of $996,209, none of which expire
prior to June 30, 1999. These capital loss carryforwards may be utilized in
future years to offset net realized capital gains prior to distribution to
shareholders.
3. Investment Transactions
Investment transactions (excluding short-term investments) were as follows for
the period ended June 30, 1998:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Tax-Free Ohio Insured Kentucky
Intermediate Tax-Free Tax-Free
Term Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases of investment securities...................... $ 20,968,625 $ 29,736,635 $ 3,887,513
============== ============== =============
Proceeds from sales and maturities of
investment securities................................. $ 26,989,988 $ 34,424,889 $ 4,688,048
============== ============== =============
</TABLE>
4. Transactions with Affiliates
The Chairman and the President of the Trust are also officers of Countrywide
Financial Services, Inc., whose subsidiaries include Countrywide Investments,
Inc. (the Adviser), the Trust's investment adviser and principal underwriter,
and Countrywide Fund Services, Inc. (CFS), the Trust's transfer agent,
shareholder service agent and accounting services agent. Countrywide Financial
Services, Inc. is a wholly-owned subsidiary of Countrywide Credit Industries,
Inc., a New York Stock Exchange listed company principally engaged in the
business of residential mortgage lending.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
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 million, 0.45% of such net
assets from $100 million to $200 million, 0.4% of such net assets from $200
million to $300 million and 0.375% of such net assets in excess of $300 million.
In order to voluntarily reduce operating expenses during the periods ended June
30, 1998, the Adviser waived $46,680 of its investment advisory fees and
reimbursed $7,979 of Institutional expenses for the Ohio Tax-Free Money Fund,
waived $107,645 of its investment advisory fees and reimbursed $7,114 of
Institutional expenses for the Florida Tax-Free Money Fund, reimbursed $948 of
Class A expenses for the Ohio Insured Tax-Free Fund and waived its investment
advisory fees of $32,172 and reimbursed $36,336 of other operating expenses for
the Kentucky Tax-Free Fund.
The Adviser has agreed, until at least August 31, 1999, to waive fees and
reimburse expenses to the extent necessary to limit total operating expenses to
0.82% for the Kentucky Tax-Free Fund.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement between the Trust and CFS, CFS maintains the records for
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, CFS receives a monthly fee at an annual
rate of $25.00 per shareholder account from each of the Tax-Free Money Fund, the
California Tax-Free Money Fund, the Ohio Tax-Free Money Fund and the Florida
Tax-Free Money Fund and $21.00 per shareholder account from each of the Tax-Free
Intermediate Term Fund, the Ohio Insured Tax-Free Fund and the Kentucky 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 CFS,
CFS calculates the daily net asset value per share and maintains the financial
books and records of each Fund. For these services, CFS receives a monthly fee,
based on current net assets, of $2,500 per month from each of the Tax-Free Money
Fund, the California Tax-Free Money Fund and the Kentucky Tax-Free Fund, $6,000
per month from the Ohio Tax-Free Money Fund and $4,000 per month from each of
the Florida Tax-Free Money Fund, the Tax-Free Intermediate Term Fund and the
Ohio Insured Tax-Free Fund. In addition, each Fund is subject to an additional
charge of 0.001% of its respective average daily net assets in excess of $300
million, and each Fund pays certain out-of-pocket expenses incurred by CFS 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 earned $3,650, $8,177
and $5,781 from underwriting and broker commissions on the sale of shares of the
Tax-Free Intermediate Term Fund, the Ohio Insured Tax-Free Fund and the Kentucky
Tax-Free Fund, respectively, during the periods ended June 30, 1998. In
addition, the Adviser collected $6,430 and $5,587 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.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
CUSTODIAN AGREEMENTS
The Fifth Third Bank, which serves as the custodian for each Fund except for the
Florida Tax-Free Money Fund, was a significant shareholder of record of the Ohio
Tax-Free Money Fund as of June 30, 1998. 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 Florida Tax-Free Money Fund, was a significant shareholder of
record of such Fund as of June 30, 1998. Under the terms of its Custodian
Agreement, Huntington receives from the Fund an asset-based fee.
PRIOR AFFILIATE AGREEMENTS
Prior to August 30, 1997, the investment adviser of the Kentucky Tax-Free Fund
was Trans Financial Bank, N.A.; Forum Financial Corp. served as the transfer
agent and dividend disbursing agent and performed portfolio accounting services;
Forum Financial Services, Inc. acted as distributor of the Fund's shares; and
Forum Administrative Services, LLC supervised the administration of all aspects
of the Fund's operations. Contractual amounts paid by the Fund for the
performance of these services are reflected in the Fund's Statement of
Operations for the year ended August 31, 1997. As of June 30, 1998, Trans
Financial Bank, N.A. was a significant shareholder of record of the Kentucky
Tax-Free Fund.
5. Capital Share Transactions
Capital share transactions for the Tax-Free Money Fund, the California Tax-Free
Money Fund, the Ohio Tax-Free Money Fund and the Florida Tax-Free Money Fund are
identical to the dollar value of those transactions as shown in the Statements
of Changes in Net Assets. Proceeds and payments on capital shares as shown in
the Statements of Changes in Net Assets for the Tax-Free Intermediate Term Fund,
the Ohio Insured Tax-Free Fund and the Kentucky Tax-Free Fund are the result of
the following capital share transactions for the periods shown:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Tax-Free Intermediate Ohio Insured
Term Fund Tax-Free Fund
Year Year Year Year
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold .................................... 1,116,388 1,150,995 11,401,093 14,158,992
Shares issued in reinvestment of
distributions to shareholders ............... 180,589 209,803 236,258 233,941
Shares redeemed ................................ (1,853,155) (2,285,966) (11,832,144) (14,943,520)
----------- ----------- ----------- -----------
Net decrease in shares outstanding ............. (556,178) (925,168) (194,793) ( 550,587 )
Shares outstanding, beginning of year .......... 5,313,679 6,238,847 5,794,738 6,345,325
----------- ----------- ----------- -----------
Shares outstanding, end of year ................ 4,757,501 5,313,679 5,599,945 5,794,738
=========== =========== =========== ===========
CLASS C
Shares sold .................................... 160,180 168,900 206,187 135,167
Shares issued in reinvestment of
distributions to shareholders ............... 15,574 17,517 16,990 13,108
Shares redeemed ................................ (217,791) (200,429) ( 181,289 ) ( 100,548 )
----------- ----------- ----------- -----------
Net increase (decrease) in shares outstanding .. (42,037) (14,012) 41,888 47,727
Shares outstanding, beginning of year .......... 468,857 482,869 379,664 331,937
----------- ----------- ----------- -----------
Shares outstanding, end of year ................ 426,820 468,857 421,552 379,664
=========== =========== =========== ===========
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Kentucky Tax-Free Fund
Ten Months Year Period
Ended Ended Ended
June 30, Aug. 31, Aug. 31,
1998 1997 1996(A)
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares sold .................................. 43,967 127,642 2,814,888
Shares issued in reinvestment of distributions
to shareholders ............................ 15,102 29,744 57,538
Shares redeemed .............................. (181,304) ( 909,256 ) (1,297,814)
--------- --------- ---------
Net increase (decrease) in shares outstanding (122,235) ( 751,870 ) 1,574,612
Shares outstanding, beginning of period ...... 822,742 1,574,612 --
--------- --------- ---------
Shares outstanding, end of period ............ 700,507 822,742 1,574,612
========= ========= =========
</TABLE>
(A) Represents the period from the commencement of operations (September 27,
1995) through August 31, 1996.
6. Portfolio Composition
As of June 30, 1998, 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 exclusively 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 Florida Tax-Free Money Fund
was 65.9% invested 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. The Kentucky Tax-Free Fund was invested exclusively in debt
obligations issued by the State of Kentucky and its political subdivisions,
agencies, authorities and instrumentalities and by other issuers the interest
from which is exempt from Kentucky income tax. As of June 30, 1998, 22.8% of the
portfolio securities of the Tax-Free Money Fund were concentrated in the State
of Ohio, 12.9% in the State of Kentucky and 10.0% in the State of Texas. For
information regarding portfolio composition by state for the Tax-Free
Intermediate Term Fund, see the Fund's Portfolio of Investments.
The Ohio Insured Tax-Free Fund and the Kentucky Tax-Free Fund are each
non-diversified Funds under the 1940 Act. Thus, investments may be concentrated
in fewer issuers than those of a diversified fund. As of June 30, 1998, the
Kentucky Tax-Free Fund had concentrations of investments (10% or greater) in two
issuers which collectively totaled 23.2%. No other Funds had concentrations of
investments in any one issuer.
The Tax-Free Money Fund, the California Tax-Free Money Fund, the Ohio Tax-Free
Money Fund and the 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 June 30, 1998, 42.1% 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], 28.2% were rated
AA/Aa, 26.3% were rated A/A and 3.4% were not rated. For the Kentucky Tax-Free
Fund's portfolio securities, 41.0% were rated AAA/Aaa, 10.2% were rated AA/Aa,
20.4% were rated A/A, and 25.7% were rated BBB/Baa, and 2.7% were not rated.
As of June 30, 1998, 92.9% 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 72.3%
of its portfolio securities.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
The concentration of investments for each Fund as of June 30, 1998, classified
by revenue source, was as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
California Ohio Florida Tax-Free Ohio
Tax-Free Tax-Free Tax-Free Tax-Free Intermediate Insured Kentucky
Money Money Money Money Term Tax-Free Tax-Free
Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
General Obligations............................ 12.5% 14.7% 28.5% 14.5% 20.8% 42.9% --
Revenue Bonds:
Industrial Development/Pollution Control..... 38.1% 31.7% 24.2% 12.4% 8.2% 4.5% 10.7%
Hospital/Health Care......................... 15.9% 4.6% 27.4% 29.0% 12.7% 20.6% 10.6%
Housing/Mortgage............................. 9.3% 5.7% 2.8% 15.6% 11.5% 5.0% 7.1%
Utilities.................................... 6.9% 21.3% 3.4% 5.2% 4.2% 14.4% 7.6%
Education.................................... 6.3% 4.7% 4.5% 8.4% 21.2% 4.3% 11.0%
Transportation............................... 4.6% 2.3% -- 1.3% 6.9% 2.8% 15.7%
Public Facilities............................ 1.4% 1.5% 3.5% 0.2% 1.8% 1.7% 19.2%
Economic Development......................... 5.0% 4.8% 3.5% 5.6% 3.1% -- 12.6%
Leases....................................... -- 4.0% -- 0.5% 2.9% -- 5.5%
Special Tax.................................. -- 1.3% 0.3% 0.5% 3.7% 2.7% --
Miscellaneous................................ -- 3.4% 1.9% 6.8% 3.0% 1.1% --
------- ------- ------- ------- ------ ------ -------
Total ......................................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
======= ======= ======= ======= ====== ====== =======
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
7. Agreement and Plan of Reorganization
The Kentucky Tax-Free Fund was originally organized as a series of Trans Adviser
Funds, Inc. (Trans Adviser), an open-end management investment company
incorporated under the laws of the State of Maryland. Pursuant to an Agreement
and Plan of Reorganization dated May 31, 1997, the Fund, on August 29, 1997,
succeeded to the assets and liabilities of a series of Trans Adviser with the
same name (the Predecessor Fund). The investment objectives, policies and
restrictions of the Fund and its Predecessor Fund are substantially identical.
For federal income tax purposes, the reorganization of the Kentucky Tax-Free
Fund qualifies as a tax-free reorganization with no tax consequences to the
Fund, its Predecessor Fund or their shareholders. In connection with the
reorganization, the fiscal year-end of the Fund, subsequent to August 31, 1997,
has been changed from August 31 to June 30.
8. Federal Tax Information for Shareholders (Unaudited)
In accordance with federal tax requirements, each Fund designates its respective
dividends paid from net investment income during the periods ended June 30, 1998
as "exempt-interest dividends". On November 28, 1997, the Ohio Insured Tax-Free
Fund paid a short-term capital gain distribution of $0.0240 per share and a
long-term capital gain distribution of $0.0550, of which $0.0253 was designated
as 28% rate gains. As required by federal regulations, shareholders will receive
notification of their portion of a Fund's taxable capital gain distributions, if
any, paid during the 1998 calendar year early in 1999.
<PAGE>
<TABLE>
TAX-FREE MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
<CAPTION>
============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 21.8% RATE DATE VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
$ 750,000 Goodman, WI, Sanitation Dist. No. 1 Sys. Rev. BANS.......... 4.100% 12/01/1998 $ 750,000
500,000 Pima Co., AZ, USD No.1 (Tucson), Prerefunded @ 102.......... 6.750 07/01/1998 510,000
200,000 Arizona St. Highway Trans. Rev., Ser. A..................... 5.700 07/01/1998 200,000
635,000 Los Alamos Co., NM, Income Utility Rev., Ser. A............. 4.800 07/01/1998 635,000
110,000 University of New Mexico, Valencia Co. Branch Comm.
College, GO................................................ 4.500 08/01/1998 110,061
100,000 Ohio St., GO................................................ 3.850 08/01/1998 100,000
500,000 Mesquite, TX, ISD GO, Ser. A................................ 7.250 08/15/1998 502,014
130,000 New York St. Medical Care Fac. Rev., Escrowed to Maturity... 7.250 08/15/1998 130,538
370,000 Charlotte, NC, COP, Ser. D (Equipment Acq. Proj.)........... 4.050 09/01/1998 370,180
245,000 Pace, FL, Ppty. Fin. Auth. Util. Sys. Rev................... 4.000 09/01/1998 245,000
110,000 Philadelphia, PA, Parking Auth. Rev., Prerefunded @ 102..... 7.250 09/01/1998 112,825
250,000 Alabama St. Municipal Elec. Auth. Power Supply Rev., Ser. A. 6.000 09/01/1998 250,937
150,000 Ohio St. IDR, Ser. 1997 (Bomaine Corp. Proj.)............... 4.300 11/01/1998 150,000
110,000 Okanogan Co., WA, GO........................................ 3.800 12/01/1998 110,000
1,000,000 Merrimack Co., NH, TANS..................................... 3.780 12/30/1998 1,000,146
500,000 Chesterfield Co., VA, GO, Ser. B............................ 6.200 01/01/1999 505,765
600,000 Massillion, OH, GO BANS..................................... 4.550 01/15/1999 602,034
641,600 American Municipal Power Sys. Impt. BANS (Village
of Milan Proj.)............................................ 3.950 01/22/1999 641,600
435,000 Collin Co., TX, Comm. College Dist. Rev..................... 4.500 02/01/1999 436,684
459,000 St. Mary's, OH, CSD, GO BANS................................ 3.990 02/23/1999 459,399
315,000 Washoe Co., NV, GO, Prerefunded @ 102....................... 7.375 07/01/1999 331,275
- -------------- ------------
$ 8,110,600 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- --------------
(Amortized Cost $8,153,458)................................. $ 8,153,458
------------
<CAPTION>
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE RATE DEMAND NOTES-- 57.5% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 900,000 Eddyville, IA, IDR (Heartland Lysine, Inc.)................. 3.800% 07/01/1998 $ 900,000
1,500,000 Montgomery Co., OH, Ser. 1998A (Miami Valley Hosp.)......... 4.000 07/01/1998 1,500,000
500,000 Hopewell, VA, IDR (Hadson Power)............................ 4.050 07/01/1998 500,000
600,000 Idaho Health Fac. Auth. Rev., Ser. 1995 (St. Luke's Reg.
Medical Cntr.)............................................. 3.750 07/01/1998 600,000
1,550,000 Kentucky Econ. Dev. Fin. Auth. Rev., Ser. 1995 (Sisters
of Charity Nazareth)....................................... 3.800 07/01/1998 1,550,000
500,000 Arapahoe Co., CO, Rev., Ser. 1997 (Denver Jet Cntr. Proj.).. 3.900 07/01/1998 500,000
1,000,000 Ohio St. Air Qual. Dev. Auth. Rev., Ser. 1995A.............. 3.800 07/01/1998 1,000,000
1,000,000 Cuyahoga Co., OH, Hosp. Impt. Rev., Ser. 1997D (Cleveland
Clinic Foundation)......................................... 4.000 07/01/1998 1,000,000
700,000 Pinal, Co., AZ, IDA PCR (Magma Copper Co.).................. 3.900 07/01/1998 700,000
900,000 Pinellas Co., FL, Health Fac. Rev. (Pooled Hosp. Loan)...... 3.900 07/01/1998 900,000
1,800,000 Trinity River, TX, Ser. 1997 (ADP Proj.).................... 4.000 07/01/1998 1,800,000
1,000,000 Hamilton Co., OH, Health System Rev. (Franciscan Sisters)... 4.750 07/01/1998 1,000,000
1,000,000 Chicago, IL, O'Hare International Airport, Ser. B
(American Airlines)........................................ 4.000 07/01/1998 1,000,000
1,000,000 Illinois Dev. Fin. Auth. MFH Rev. (Cobbler Square Proj.).... 4.250 07/01/1998 1,000,000
400,000 Montebello, CA, COP, Ser. 1997 (Montebello Public
Impt. Corp.)............................................... 3.950 07/01/1998 400,000
200,000 Kentucky EDR, Hosp. Facs. Rev., Ser. D (Health Alliance).... 3.550 07/01/1998 200,000
330,000 Coppell, TX, IDR (Minyards Prop., Inc.)..................... 3.900 07/01/1998 330,000
335,000 Frankfort, MN, IDR, Ser. 1995 (J&B, Inc.)................... 4.050 07/02/1998 335,000
70,000 St. Cloud, MN, Hsg. & Redev. Auth. Rev. (Coborn Realty Co.). 3.800 07/02/1998 70,000
1,000,000 District of Columbia MFH, Tyler House Trust COP,
Ser. 1995A................................................. 3.850 07/02/1998 1,000,000
675,000 Brooklyn Park, MN, IDR (Schmidt Proj.)...................... 3.800 07/02/1998 675,000
1,500,000 Athens-Clarke Co., GA, IDR (Nakanishi Corp. Proj.).......... 4.125 07/02/1998 1,500,000
<PAGE>
<CAPTION>
TAX-FREE MONEY FUND (Continued)
============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE RATE DEMAND NOTES-- 57.5% RATE DATE VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
$ 1,200,000 Indiana St. Dev. Fin. Auth. Rev. (Lutheran H.S. Proj.)...... 3.700% 07/02/1998 $ 1,200,000
1,315,000 Mankato, MN, IDR, Ser. 1998 (Sacco Family Proj.)............ 3.950 07/02/1998 1,315,000
525,000 Frankfort, MN, IDR, Ser. 1995 (J&B, Inc.)................... 3.800 07/02/1998 525,000
- -------------- ------------
$ 21,500,000 TOTAL FLOATING & VARIABLE RATE DEMAND NOTES
- --------------
(Amortized Cost $21,500,000)................................ $21,500,000
------------
<CAPTION>
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT ADJUSTABLE RATE PUT BONDS-- 18.9% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 735,000 Buckeye Tax-Exempt Mtg. Bond Trust.......................... 4.050% 08/01/1998 $ 733,481
570,000 Fort Mitchell, KY, Indust. Bldg. Rev.
(Grandview/Hemmer Proj.)................................... 4.000 08/01/1998 570,000
605,000 Corpus Christi, TX, IDR (Tex-Air Investment Co. Proj.)...... 3.900 08/01/1998 605,000
290,000 Lansing, MI, EDR (LGH Office Bldg. Proj.)................... 3.700 08/15/1998 290,000
1,200,000 Owensboro, KY, IDR, Ser. 1985 (Dart Container).............. 3.750 09/01/1998 1,200,000
106,000 Citizens Federal Tax-Exempt Mtg. Bond Trust................. 3.850 09/01/1998 106,000
150,000 Cuyahoga Co., OH, IDR (Halle Office Bldg.).................. 4.015 10/01/1998 150,000
500,000 Santa Clara Co., CA, Hsg. Auth. Rev. (Orchard
Glen Apartments)........................................... 5.250 11/01/1998 500,000
180,000 Medina Co., OH, IDR (Nationwide One Proj.).................. 3.950 11/01/1998 179,948
1,000,000 Westmoreland Co., PA, IDR (White Cons Indust.).............. 4.010 12/01/1998 1,000,000
540,000 Henderson Co., KY, River Port Auth. IDR
(David Joseph Proj.)....................................... 3.700 01/01/1999 539,649
500,000 Colorado Health Fac. Auth. Rev., Ser. 1998A................. 3.700 01/15/1999 500,000
680,000 Lexington-Fayette Co., KY, Urban Govt. Rev.
(Providence Montessori).................................... 4.125 07/01/1999 680,000
- -------------- ------------
$ 7,056,000 TOTAL ADJUSTABLE RATE PUT BONDS
- --------------
(Amortized Cost $7,054,078)................................. $ 7,054,078
------------
$ 36,666,600 TOTAL INVESTMENT SECURITIES-- 98.2%
==============
(Amortized Cost $36,707,536)................................ $36,707,536
OTHER ASSETS IN EXCESS OF LIABILITIES-- 1.8% ............... 675,907
------------
NET ASSETS-- 100.0% ........................................ $37,383,443
============
See accompanying notes to financial statements and notes to portfolios of
investments.
</TABLE>
<PAGE>
<TABLE>
CALIFORNIA TAX-FREE MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
<CAPTION>
============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 37.5% RATE DATE VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
$ 150,000 Brawley, CA, Wastewater Treatment Fac. Rev., COP............ 3.800% 07/01/1998 $ 150,000
460,000 Shasta, CA, Joint Powers Fin. Auth. Landfill Rev.,
Ser. 1997A................................................. 3.850 07/01/1998 460,000
500,000 Los Angeles Co., CA, Transportation Sales Tax Rev., Ser. A.. 5.200 07/01/1998 500,000
160,000 Los Angeles Co., CA, Transportation Comm. Sales Tax
Rev., Ser. A............................................... 7.200 07/01/1998 163,200
110,000 San Mateo Co., CA, Joint Powers Fin. Auth. Lease Rev........ 3.700 07/15/1998 110,000
1,000,000 Santa Cruz Co., CA, Office of Educ. TRANS................... 4.500 07/30/1998 1,000,460
1,000,000 Butte Co., CA, Office of Educ. TRANS........................ 4.500 07/31/1998 1,000,487
430,000 Calaveras, CA, USD, GO...................................... 3.600 08/01/1998 430,000
100,000 San Jose Redev. Agcy., Tax Alloc. (Merged Area Proj.)....... 4.200 08/01/1998 100,032
250,000 Pasadena, CA, Comm. Dev., Tax Alloc. (Downtown
Redev. Proj.).............................................. 4.750 08/01/1998 250,185
1,000,000 South Coast Air Quality Mgmt. Dist. Bldg. Corp.,
CA, Rev., Prerefunded @ 102................................ 7.800 08/01/1998 1,024,803
500,000 California St. Dept. of Veteran Affairs, Home
Purchase Rev., Ser. A...................................... 8.300 08/01/1998 511,782
1,000,000 Oxnard, CA, School Dist. TRANS.............................. 4.500 08/13/1998 1,000,734
235,000 Northern CA, Power Agcy. Rev................................ 6.125 08/15/1998 235,657
200,000 Los Angeles Co., CA, Public Works Fin. Auth. Rev............ 4.000 09/01/1998 200,090
400,000 Modesto, CA, Irrigation Dist. Fin. Auth. Water Proj.
Rev., Ser. 1998D........................................... 4.250 09/01/1998 400,467
265,000 Montebello, CA, Comm. Redev. Agcy., Tax Alloc., Ser. A..... 4.500 09/01/1998 265,305
300,000 California St. GO........................................... 5.400 09/01/1998 300,766
1,200,000 Simi Valley, CA, Public Fin. Auth. Rev., Prerefunded @ 102.. 7.000 09/01/1998 1,230,193
635,000 California St. GO........................................... 4.700 10/01/1998 636,706
190,000 Virgin Islands, Public Fin. Auth. Rev., Ser. B.............. 6.900 10/01/1998 191,538
1,000,000 California St. GO Veterans Bonds, Ser. A-Q.................. 8.750 10/01/1998 1,012,074
205,000 California St. GO, Veterans Bonds, Ser. A-S................. 11.000 10/01/1998 208,631
215,000 Sacramento, CA, COP, Prerefunded @ 100...................... 6.500 11/01/1998 217,126
750,000 University of California, COP, UCLA Central
Chiller/Congeneration Fac. ................................ 10.750 11/01/1998 767,349
175,000 Rubidoux, CA, Community Service Dist. COP (Water Sys.
Impt. Proj.)............................................... 3.500 12/01/1998 174,834
100,000 California St. Dept. of Veteran Affairs, Home
Purchase Rev., Ser. B...................................... 3.850 12/01/1998 100,000
205,000 San Ramon, CA, Public Fin. Auth., Tax Alloc................. 3.600 02/01/1999 205,000
270,000 Big Bear Lake, CA, COP (Big Bear Lake Impt. Agcy.).......... 6.000 02/01/1999 273,226
500,000 Los Angeles, CA, Wastewater Sys. Rev., Ser. A,
Prerefunded @ 102.......................................... 7.000 02/01/1999 519,835
330,000 Los Angeles, CA, Wastewater Sys. Rev., Ser. A,
Prerefunded @ 102.......................................... 7.100 02/01/1999 342,715
285,000 Madera Co., CA, COP (Valley Childrens Hosp.)................ 3.600 03/15/1999 285,000
200,000 California Fin. Auth. Solid Waste Disposal Rev.,
Ser. 1998C (City Fibers, Inc.)............................. 4.000 04/01/1999 200,000
250,000 San Diego Co., CA, Regional Transportation Comm.
Sales Tax Rev., Ser. A..................................... 5.000 04/01/1999 252,366
100,000 San Diego, CA, Sewer Rev., Ser. A........................... 4.000 05/15/1999 100,125
100,000 California St. GO, Ser. B-J................................. 4.125 06/01/1999 100,118
160,000 California St. University Trust COP......................... 6.000 06/01/1999 163,139
255,000 Napa Valley, CA, USD, GO.................................... 7.000 08/01/1999 263,711
- -------------- ------------
$ 15,185,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS.........
- --------------
(Amortized Cost $15,347,653)................................ $15,347,653
------------
<PAGE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY FUND (Continued)
============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE RATE DEMAND NOTES-- 56.4% RATE DATE VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
$ 1,000,000 California Higher Educ. Loan Auth. Student Loan Rev......... 3.500% 07/01/1998 $ 1,000,000
1,600,000 Vacaville, CA, IDA, IDR (Leggett & Platt, Inc.)............. 3.650 07/01/1998 1,600,000
1,500,000 Dinuba, CA, Fin. Auth. Rev., Ser. 1996A (Wastewater
Treatment Plant Proj.)..................................... 3.950 07/01/1998 1,500,000
400,000 Newport Beach, CA, Rev., Ser. C (Hoag Memorial Hosp.)....... 3.600 07/01/1998 400,000
1,400,000 San Rafael, CA, IDR, Ser. 1984 (Phoenix American, Inc.)..... 3.700 07/01/1998 1,400,000
2,900,000 Santa Paula, CA, Public Fin. Auth. Rev., Ser. 1996
(Water Sys. Acquisition Proj.)............................. 4.300 07/01/1998 2,900,000
1,500,000 Ontario, CA, Rev., Ser. A (Redev. Agcy. Hsg. Fin.).......... 4.250 07/01/1998 1,500,000
600,000 Montebello, CA, COP, Ser. 1997 (Montebello Public
Impt. Corp.)............................................... 3.950 07/01/1998 600,000
1,200,000 Newport Beach, CA, Rev., Ser. A (Hoag Memorial Hosp.)....... 3.600 07/01/1998 1,200,000
1,000,000 San Bernardino Co., CA, Capital Impt.
Refinancing Proj. Rev. .................................... 3.900 07/02/1998 1,000,000
1,150,000 Alameda Co., CA, IDR, Ser. A (Tool Family Partnership)...... 3.500 07/02/1998 1,150,000
1,300,000 San Bernardino Co., CA, COP................................. 3.600 07/02/1998 1,300,000
900,000 San Bernardino, CA, IDR (LaQuinta Motor Inns)............... 3.650 07/02/1998 900,000
1,500,000 Hanford, CA, Sewer Rev., Ser. A............................. 3.900 07/02/1998 1,500,000
2,000,000 Alameda Co., CA, IDR (Dicon Fiberoptics, Inc., Proj. A)..... 3.500 07/02/1998 2,000,000
3,200,000 California PCR Fin. Auth., Ser. 1983 (Southdown, Inc.)...... 3.800 07/15/1998 3,200,000
- -------------- ------------
$ 23,150,000 TOTAL FLOATING & VARIABLE RATE DEMAND NOTES
- --------------
(Amortized Cost $23,150,000)................................ $23,150,000
------------
<CAPTION>
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT ADJUSTABLE RATE PUT BONDS-- 2.9% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 1,200,000 Huntington Park, CA, Redev. Agcy. Rev. (Huntington
Park Personal Storage II).................................. 3.800% 08/01/1998 $ 1,200,000
- -------------- ------------
(Amortized Cost $1,200,000)
<CAPTION>
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT COMMERCIAL PAPER-- 2.4% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 1,000,000 San Diego, CA, IDR (SDG&E).................................. 3.550% 07/14/1998 $ 1,000,000
- -------------- ------------
(Amortized Cost $1,000,000)
$ 40,535,000 TOTAL INVESTMENT SECURITIES-- 99.2%
==============
(Amortized Cost $40,697,653)................................ $40,697,653
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.8% ............... 315,179
------------
NET ASSETS-- 100.0% ........................................ $41,012,832
============
See accompanying notes to financial statements and notes to portfolios of
investments.
</TABLE>
<PAGE>
<TABLE>
OHIO TAX-FREE MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
<CAPTION>
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 33.7% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 500,000 Ohio St. Higher Educ. Fac. Comm. Rev.
(Western Reserve Univ.).................................... 4.750% 07/01/1998 $ 500,000
925,000 Seneca Co., OH, Human Fac. GO BANS.......................... 4.120 07/09/1998 925,054
700,000 Marysville, OH, Road Realignment GO BANS.................... 4.060 07/15/1998 700,069
2,000,000 Plain Township, OH, Fire Station GO BANS.................... 4.330 07/15/1998 2,000,438
893,000 Reynoldsburg City, OH, Cap. Fac. GO BANS, Ser. 1998......... 4.150 07/15/1998 893,135
1,000,000 Springboro City, OH, Water Sys. Impt. GO BANS, Ser. 1998.... 4.050 07/28/1998 1,000,219
2,226,000 Wood Co., OH, Sheriff's Dept. Impt. GO BANS, Ser. 1997...... 4.250 07/31/1998 2,226,615
1,000,000 Euclid City, OH, Various Purpose GO BANS.................... 4.120 07/31/1998 1,000,134
2,000,000 Ohio St. GO................................................. 3.850 08/01/1998 2,000,073
250,000 Ohio St. GO................................................. 4.000 08/01/1998 250,054
1,000,000 Ohio St. GO................................................. 5.500 08/01/1998 1,001,476
270,000 Ohio St., Infrastructure GO................................. 3.800 08/01/1998 270,014
1,000,000 Pickerington, OH, LSD School Impt. GO BANS, Ser. 1998....... 4.070 08/03/1998 1,000,393
1,400,000 Wadsworth, OH, CSD School Impt. GO BANS, Ser. 1998.......... 4.230 08/04/1998 1,400,554
1,000,000 Wadsworth, OH, CSD School Impt. GO BANS..................... 4.375 08/04/1998 1,000,431
1,060,000 Mason-Deerfield Joint Fire Dist. GO BANS, Ser. 1997......... 4.260 08/05/1998 1,060,254
2,440,000 Ottawa Co., OH, Regional Water Sys. Impt. GO BANS........... 4.125 08/06/1998 2,440,578
1,055,000 Marysville, OH, Downtown Sidewalk GO BANS................... 4.220 09/03/1998 1,055,481
207,000 Plain, OH, LSD School Impt. GO BANS......................... 4.310 09/03/1998 207,067
890,000 Marysville, OH, Various Purpose GO BANS..................... 4.160 09/03/1998 890,390
1,000,000 Wilmington, OH, CSD School Impt. GO BANS.................... 4.300 09/08/1998 1,001,113
1,180,000 Loveland, OH, Real Estate Acq. GO BANS...................... 4.110 09/10/1998 1,180,464
250,000 Columbus, OH, GO, Ser. 2.................................... 4.350 09/15/1998 250,329
4,075,000 Mayfield Village, OH, Various Purpose GO BANS............... 4.125 09/29/1998 4,077,107
1,200,000 Rural Lorain, OH, Water Auth. Rev., Prerefunded @ 102....... 7.700 10/01/1998 1,235,107
900,000 Salem, OH, CSD Energy Conserv. GO BANS, Ser. 1997........... 4.130 10/01/1998 900,390
1,050,000 Ohio St. Bldg. Auth. Rev., Ser. C........................... 7.100 10/01/1998 1,058,367
2,000,000 Ontario, OH, LSD School Impt. GO BANS....................... 4.375 10/07/1998 2,003,340
1,000,000 Lake Co., OH, Various Purpose GO BANS....................... 4.070 10/08/1998 1,000,442
1,580,000 Streetsboro City, OH, Various Purpose GO BANS............... 4.150 10/09/1998 1,580,623
2,030,000 Jackson Co., OH, Correction Fac. GO BANS, Ser. 1997........ 4.330 10/15/1998 2,031,884
1,000,000 Hamilton, OH, Elec. Sys. Rev., Ser. B, Prerefunded @ 102.... 8.000 10/15/1998 1,032,011
500,000 Columbus, OH, Water Sys. Rev................................ 5.500 11/01/1998 502,929
1,000,000 Ohio St. Public Fac. Rev., Ser. II-B........................ 4.500 11/01/1998 1,002,597
500,000 Ohio St. Higher Educ. Fac. Comm. Rev. (Xavier
Univ. Proj.), Prerefunded @ 100............................ 7.200 11/01/1998 505,927
500,000 Lima, OH, River Corridor Land Acq. GO BANS.................. 4.250 11/10/1998 500,435
500,000 Cuyahoga Co., OH, Hosp. Rev. (Cleveland Clinic Foundation).. 5.250 11/15/1998 502,819
1,155,000 Marysville, OH, Various Purpose GO BANS..................... 4.220 11/19/1998 1,156,157
3,500,000 Hamilton, OH, Real Estate Acq. GO BANS...................... 4.850 11/19/1998 3,503,227
2,000,000 Summit Co., OH, Various Purpose GO BANS, Ser. 1997B......... 4.875 11/19/1998 2,007,996
1,425,000 Marion Co., OH, Correctional Fac. GO BANS................... 4.100 11/23/1998 1,426,195
1,190,500 Fort Recovery, OH, LSD School Construction GO BANS.......... 4.230 11/24/1998 1,192,721
600,000 Gahanna-Jefferson, OH, CSD GO BANS.......................... 4.500 12/01/1998 601,937
500,000 Kettering, OH, Recreation Center GO......................... 4.300 12/01/1998 501,421
1,580,000 Toledo, OH, Various Purpose GO, Ser. A...................... 3.850 12/01/1998 1,580,000
730,000 Toledo, OH, Various Purpose GO, Ser. B...................... 3.850 12/01/1998 730,293
1,135,000 Olentangy, OH, LSD School Impt. GO BANS..................... 3.900 12/01/1998 1,135,898
300,000 Adams Co., OH, Valley LSD School Impt. GO BANS.............. 4.550 12/01/1998 300,968
640,000 Muskingum Co., OH, Brandywine Blvd. Extension GO BANS....... 4.350 12/02/1998 640,778
<PAGE>
<CAPTION>
OHIO TAX-FREE MONEY FUND (Continued)
============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 33.7% RATE DATE VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
$ 1,200,000 Muskingum Co., OH, Juvenile Detention GO BANS............... 4.100% 12/03/1998 $ 1,202,079
900,000 Hudson City, OH, Various Purpose GO BANS.................... 4.125 12/10/1998 900,826
2,900,000 Geauga Co., OH, Park Dist. GO............................... 4.080 12/10/1998 2,900,981
840,000 Maple Heights, OH, CSD GO TRANS, Ser. 1998.................. 4.000 12/11/1998 840,728
885,000 Painesville City, OH, Various Purpose GO BANS............... 4.140 12/16/1998 885,937
710,000 Wood Co., OH, Regional Water & Sewer GO BANS................ 4.100 01/22/1999 710,570
850,000 Marysville, OH, Various Purpose GO BANS..................... 4.070 01/28/1999 851,276
3,239,377 Toledo, OH, CSD Energy Conserv. GO BANS..................... 4.000 01/29/1999 3,242,999
600,000 North Ridgeville City, OH, Waterworks Sys. Impt. GO BANS.... 4.200 02/03/1999 600,857
1,190,000 Marion Co., OH, Human Services Bldg. Impt. GO BANS.......... 4.100 02/10/1999 1,192,108
1,200,000 South Euclid-Lyndhurst, OH, CSD Energy Conserv. GO.......... 3.980 02/11/1999 1,201,636
1,000,000 Mason, OH, CSD GO BANS, Ser. 1998A.......................... 4.020 02/18/1999 1,002,575
2,000,000 Van Wert Co., OH, Jail Construction GO BANS................. 3.930 02/18/1999 2,001,589
950,000 Ottawa Co., OH, Port Auth. Fac. GO BANS.................... 3.980 02/23/1999 951,662
1,130,000 Akron, OH, Waterworks Rev................................... 3.650 03/01/1999 1,130,000
500,000 Ohio St. Bldg. Auth. Rev., Ser. A........................... 7.150 03/01/1999 511,060
1,050,000 Salem, OH, CSD School Impt. GO BANS, Ser. 1998.............. 3.900 03/04/1999 1,051,362
3,960,000 American Municipal Power, OH, Rev. BANS (City of
Wadsworth Proj.)........................................... 3.850 03/17/1999 3,960,000
300,000 New Knoxville, OH, LSD School Impt. GO BANS................. 4.070 03/25/1999 300,463
1,800,000 American Municipal Power, OH, Rev. BANS (Lodi Village Proj.) 3.875 03/25/1999 1,800,000
1,266,000 Crestline Village, OH, Capital Facilities GO BANS, Ser. 1998 4.250 04/07/1999 1,267,865
900,000 Allen Co., OH, Bath Township Ditch GO BANS.................. 4.100 04/13/1999 902,037
3,300,000 Hebron Village, OH, Sanitary Sewer Sys., Ser. 1998.......... 4.580 04/15/1999 3,314,503
1,000,000 Ohio St. Pub. Fac., Higher Educ. Rev., Ser. II-A............ 4.750 05/01/1999 1,008,499
1,250,000 Marysville, OH, Various Purpose GO BANS..................... 4.160 05/06/1999 1,252,639
1,150,000 Ross Co., OH, Bldg. Acq. GO BANS............................ 4.000 05/19/1999 1,150,000
2,000,000 Summit Co., OH, Various Purpose GO BANS, Ser. 1998A......... 4.500 06/03/1999 2,013,462
1,000,000 Norwalk City, OH, Street Impt. GO BANS (Downtown
Rental Proj.).............................................. 4.000 06/10/1999 1,001,536
2,500,000 Hamilton City, OH, Various Purpose GO BANS, Ser. 1998....... 3.750 06/11/1999 2,500,000
2,400,000 Obetz Village, OH, Street Impt. GO BANS..................... 4.170 06/15/1999 2,403,736
1,870,000 St. Mary's City, OH, Sanitation Impt. GO BANS............... 4.200 06/15/1999 1,875,160
1,100,000 Van Wert City, OH, Sewer Sys. Impt. GO BANS................. 4.150 06/17/1999 1,103,054
410,000 Parma, OH, CSD School Impt. GO BANS......................... 3.850 06/24/1999 410,000
1,640,000 Clark Co., OH, Various Purpose GO BANS...................... 4.150 06/24/1999 1,645,420
2,100,000 American Municipal Power, OH, Rev. BANS
(Montpelier Village Proj.)................................. 3.950 07/15/1999 2,100,000
- -------------- ------------
$107,926,877 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- --------------
(Amortized Cost $108,152,523)............................... $108,152,523
------------
<CAPTION>
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE RATE DEMAND NOTES-- 57.7% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 50,000 Franklin Co., OH, IDR (Columbus Dist.)...................... 3.700% 07/01/1998 $ 50,000
2,200,000 Cuyahoga Co., OH, Educ. Fac. Rev., Ser. 1998 (United
Cerebral Palsy Assoc.)..................................... 3.650 07/01/1998 2,200,000
4,100,000 Hamilton Co., OH, Hosp. Fac. Rev., Ser. 1997B
(Health Alliance of Greater Cincinnati)..................... 3.550 07/01/1998 4,100,000
3,500,000 Summit, OH, Civic Fac. Rev., Ser. 1997 (YMCA Proj.)......... 3.650 07/01/1998 3,500,000
965,000 Centerville, OH, Health Care Rev. (Bethany Memorial)........ 3.600 07/01/1998 965,000
3,000,000 Cuyahoga Co., OH, Hosp. Rev., Ser. 1997C
(Cleveland Clinic Foundation).............................. 3.550 07/01/1998 3,000,000
1,700,000 Lorain Co., OH, IDR (EMH Med. Ctr. Proj.)................... 3.600 07/01/1998 1,700,000
1,000,000 Butler Co., OH, IDR (Phillip Morris Co.).................... 3.600 07/01/1998 1,000,000
1,375,000 Greene Co., OH, Health Care Fac. Rev. (Green Oaks Proj.).... 3.650 07/01/1998 1,375,000
<PAGE>
<CAPTION>
OHIO TAX-FREE MONEY FUND (Continued)
============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE RATE DEMAND NOTES-- 57.7% RATE DATE VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
$ 2,320,000 Erie Co., OH, IDR (Toft Dairy, Inc.)........................ 3.650% 07/01/1998 $ 2,320,000
750,000 Orrville, OH, Hosp. Fac. Rev., Ser. 1990 (Orrville Hosp.)... 3.650 07/01/1998 750,000
2,700,000 Hamilton Co., OH, Health Alliance, Ser. F................... 3.550 07/01/1998 2,700,000
3,000,000 Clinton Co., OH, Hosp. Rev. (Ohio Hospital Cap., Inc.)...... 3.650 07/01/1998 3,000,000
2,000,000 Montgomery Co., OH, EDR Rev. (Dayton Art Institute)......... 3.550 07/01/1998 2,000,000
500,000 Ohio St. Environmental Impt. Rev. (U.S. Steel Corp.)........ 3.850 07/01/1998 500,000
2,900,000 Muskingum Co., OH, IDR (Elder-Beerman)...................... 3.850 07/01/1998 2,900,000
4,045,000 Cuyahoga Co., OH, IDR (S & R Playhouse Realty).............. 3.900 07/01/1998 4,045,000
1,865,000 Franklin Co., OH, IDR (Capitol South)....................... 3.950 07/01/1998 1,865,000
2,200,000 Delaware Co., OH, IDR (Radiation Sterilizers, Inc.)......... 3.900 07/01/1998 2,200,000
1,000,000 Cuyahoga Co., OH, Hosp. Rev., Ser. 1997D (Cleveland
Clinic Foundation)......................................... 4.000 07/01/1998 1,000,000
375,000 Franklin Co., OH, IDR (BOA Ltd. Proj.)...................... 4.000 07/01/1998 375,000
1,000,000 Wyandot Co., OH, IDR, Ser. 1985 (MRG Ltd. Proj.)............ 3.600 07/01/1998 1,000,000
800,000 Cincinnati & Hamilton Co., OH, Port. Auth. EDR
(Kenwood Office Assoc. Proj.).............................. 3.700 07/01/1998 800,000
1,700,000 Montgomery Co., OH, Rev., Ser. 1998A (Miami Valley Hospital) 4.000 07/01/1998 1,700,000
14,500,000 Hamilton Co., OH, Health Sys. Rev. (Franciscan Sisters)..... 4.750 07/01/1998 14,500,000
5,600,000 Ohio St. Air Quality Dev. Auth. Rev., Ser. 1995A
(Cincinnati Gas & Elect.).................................. 3.800 07/01/1998 5,600,000
900,000 Lucas Co., OH, EDR (Glendale Meadows)....................... 3.650 07/01/1998 900,000
905,000 Cuyahoga Co., OH, IDR (Pleasant Lake Assoc.)................ 3.650 07/01/1998 905,000
2,170,000 Summit Co., OH, IDR (Bowery Assoc.)......................... 3.600 07/01/1998 2,170,000
1,000,000 Meigs Co., OH, IDR, Ser. 1985 (MRG Ltd. Proj.).............. 3.600 07/01/1998 1,000,000
494,000 Lorain Co., OH, IDR, Ser. C (Kindercare).................... 3.700 07/01/1998 494,000
300,000 Medina, OH, IDR (Kindercare)................................ 3.700 07/01/1998 300,000
1,000,000 Delaware Co., OH, IDR, Ser. 1985 (MRG Ltd. Proj.)........... 3.600 07/01/1998 1,000,000
375,000 Hudson Village, OH, IDR, Ser. A (Kindercare)................ 3.700 07/01/1998 375,000
965,000 Huron Co., OH, Rev. (Norwalk Furniture Corp.)............... 3.650 07/01/1998 965,000
670,000 Montgomery Co., OH, Health Care Rev., Ser. A
(Dayton Area MRI Consortium)............................... 3.650 07/01/1998 670,000
200,000 Ohio St. Water Dev. Auth. Rev. (Timken Co. Proj.)........... 3.600 07/01/1998 200,000
775,000 Cuyahoga Co., OH, Health Care Fac. Rev., Ser. 1993A
(Hospice of the Western Reserve)............................ 3.650 07/01/1998 775,000
900,000 Cuyahoga Co., OH, Health Care Fac. Rev. (Benjamin
Rose Inst.)................................................ 3.600 07/01/1998 900,000
340,000 Montgomery Co., OH, IDR (Kindercare)........................ 3.700 07/01/1998 340,000
437,000 Stark Co., OH, IDR, Ser. D (Kindercare)..................... 3.700 07/01/1998 437,000
935,000 Lucas Co., OH, IDR, Ser. D (Kindercare)..................... 3.700 07/01/1998 935,000
564,000 Franklin Co., OH, IDR, Ser. D (Kindercare).................. 3.700 07/01/1998 564,000
2,160,000 Defiance Co., OH, IDR (Isaac Property Proj.)................ 3.650 07/01/1998 2,160,000
1,000,000 Morrow Co., OH, IDR (Field Container Corp.)................. 3.550 07/01/1998 1,000,000
1,000,000 Toledo, OH, City Serv., Special Assessment.................. 3.550 07/01/1998 1,000,000
287,000 Middletown, OH, IDR, Ser. A (Kindercare).................... 3.700 07/01/1998 287,000
1,300,000 Franklin Co., OH, IDR (Jacobsen Stores)..................... 3.950 07/01/1998 1,300,000
375,000 Wadsworth, OH, IDR (Kindercare)............................. 3.700 07/01/1998 375,000
1,750,000 Cuyahoga Co., OH, Health Care Fac. Rev., Ser. 1993B
(Hospice of the Western Reserve)........................... 3.650 07/01/1998 1,750,000
2,690,000 Hancock Co., OH, MFM Rev., Ser. A (Crystal Glen Apts.
Proj. Phase II)............................................ 3.600 07/02/1998 2,690,000
4,485,000 Trumbull Co., OH, Health Care Fac. Rev. (Shepherd of
the Valley)................................................ 3.600 07/02/1998 4,485,000
770,000 Marion Co., OH, Hosp. Impt. Rev. (Pooled Lease Proj.)....... 3.600 07/02/1998 770,000
770,000 Marion Co., OH, Hosp. Impt. Rev., Ser. 1992
(Pooled Lease Proj.)....................................... 3.600 07/02/1998 770,000
4,000,000 Montgomery Co., OH, Ltd. Oblig. Rev., Ser. 1996
(St. Vincent De Paul Proj.)................................ 3.750 07/02/1998 4,000,000
3,500,000 Lima, OH, Hosp. Fac. & Impt. Rev., Ser. 1996
(Lima Memorial Hosp.)...................................... 3.600 07/02/1998 3,500,000
1,610,000 Mahoning Co., OH, Health Care Fac. Rev.
(Ohio Heart Institute)..................................... 3.600 07/02/1998 1,610,000
3,200,000 Butler Co., OH, Hosp. Fac. Rev., Ser. 1998A
(Berkeley Square Retirement Cntr. Proj.).................... 3.650 07/02/1998 3,200,000
<PAGE>
<CAPTION>
OHIO TAX-FREE MONEY FUND (Continued)
============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE RATE DEMAND NOTES-- 57.7% RATE DATE VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
$ 750,000 Pike Co., OH, EDR (Pleasant Hill)........................... 3.600% 07/02/1998 $ 750,000
450,000 Akron, Bath & Copley, OH, Joint Twp. Hosp. Rev.
(Visiting Nurse Svcs. Proj.)............................... 3.600 07/02/1998 450,000
1,252,900 Hamilton Co., OH, EDR, Ser. 1995 (Cincinnati Assoc.
for the Performing Arts)................................... 3.650 07/02/1998 1,252,900
350,000 Lucas Co., OH, Rev. (Sunshine Children's Home).............. 3.600 07/02/1998 350,000
3,700,000 Ashtabula Co., OH, Hosp. Fac. Rev., Ser. 1995
(Ashtabula Co. Med. Ctr. Proj.)............................ 3.600 07/02/1998 3,700,000
1,445,000 Village of Andover, OH, Health Care Rev., Ser. 1996
(D&M Realty Proj.)......................................... 3.600 07/02/1998 1,445,000
405,000 Lucas Co., OH, IDR (S.A. Associates Proj.).................. 3.700 07/02/1998 405,000
565,000 Summit Co., OH, IDR (Go-Jo Indust., Inc. Proj.)............. 3.600 07/02/1998 565,000
100,000 Marion Co., OH, Hosp. Impt. Rev. (Pooled Lease Proj.)....... 3.600 07/02/1998 100,000
1,180,000 Franklin Co., OH, IDR (Ohio Girl Scouts).................... 3.600 07/02/1998 1,180,000
1,560,000 Allen Co., OH, Health Care Fac. Rev. (Mennonite
Memorial Home Proj.)....................................... 3.500 07/02/1998 1,560,000
1,900,000 Summit Co., OH, Health Care Fac. Rev., Ser. 1997
(Evant, Inc. Proj.)........................................ 3.600 07/02/1998 1,900,000
2,000,000 Franklin Co., OH, IDR (Alco Standard Corp.)................. 3.650 07/02/1998 2,000,000
1,700,000 Clinton Co., OH, Hosp. Rev. (Clinton Memorial Hosp.)........ 3.600 07/02/1998 1,700,000
5,630,000 Sharonville, OH, IDR (Duke Realty Proj.).................... 3.600 07/02/1998 5,630,000
5,000,000 Hamilton Co., OH, Fac. Rev., Ser. 1997A (Episcopal
Retirement Homes).......................................... 3.650 07/02/1998 5,000,000
1,600,000 Warren Co., OH, IDR (Liquid Container Proj.)................ 3.600 07/02/1998 1,600,000
3,740,000 Montgomery Co., OH, Health Care Rev. (Comm.
Blood Ctr. Proj.).......................................... 3.600 07/02/1998 3,740,000
8,000,000 Franklin Co., OH, IDR (Berwick Steel)....................... 4.250 07/02/1998 8,000,000
1,000,000 Franklin Co., OH, Hosp. Rev. (U.S. Health Corp.)............ 3.550 07/02/1998 1,000,000
4,600,000 Ohio St. Higher Educ. Fac. Rev. (Pooled Fin.)............... 3.600 07/02/1998 4,600,000
400,000 Franklin Co., OH, IDR (Columbus College).................... 3.600 07/02/1998 400,000
4,800,000 Ohio St. EDR, Ser. 1983 (Court St. Ctr. Assoc. Ltd. Proj.).. 3.600 07/02/1998 4,800,000
900,000 Rickenbacker, OH, Port. Auth. Rev. (Rickenbacker
Holdings, Inc.)............................................ 3.600 07/02/1998 900,000
1,750,000 Westlake, OH, IDR (Nordson Co.)............................. 3.500 07/02/1998 1,750,000
5,000,000 Ohio St. Higher Educ. Fac. Comm. Rev. (Pooled Fin.)......... 3.600 07/02/1998 5,000,000
2,000,000 Cuyahoga Co., OH, IDR, Ser. 1989 (Motch Corp. Proj.)........ 3.750 07/02/1998 2,000,000
5,800,000 Hamilton Co., OH, Hosp. Fac. Rev., Ser. 1997A
(Children's Hosp. Med. Ctr................................. 3.600 07/02/1998 5,800,000
1,955,000 Mahoning Co., OH, Health Care Fac. Rev. (Copeland Oaks)..... 3.600 07/02/1998 1,955,000
1,975,000 Ashland Co., OH, Hosp. Fac. Rev., Ser. 1989
(Good Shepherd Home)....................................... 4.000 07/03/1998 1,975,000
600,000 Ohio St. Higher Educ. Fac. Rev., (John Carroll University).. 4.250 07/06/1998 600,000
4,250,000 Cincinnati & Hamilton Co., OH, Port. Auth. Rev.
(Kaiser Agric. Chemical Co.)............................... 3.350 07/07/1998 4,250,000
1,400,000 Hamilton Co., OH, IDR (ADP System).......................... 3.700 07/15/1998 1,400,000
- -------------- ------------
$184,729,900 TOTAL FLOATING & VARIABLE RATE DEMAND NOTES
- --------------
(Amortized Cost $184,729,900)............................... $184,729,900
------------
<PAGE>
<CAPTION>
OHIO TAX-FREE MONEY FUND (Continued)
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT ADJUSTABLE RATE PUT BONDS-- 9.2% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 2,500,000 Ohio St. Air Quality Dev. Auth. Rev., Ser. A
(Duquesne Light)........................................... 3.950% 07/10/1998 $ 2,500,000
1,215,000 Hamilton, OH, IDR (Continental Commercial Ppty.)............ 3.850 08/01/1998 1,215,000
1,000,000 Ohio St. Air Quality Dev. Auth. Rev., Ser. A
(Ohio Edison Proj.)........................................ 4.350 08/01/1998 1,000,371
884,000 Citizens Federal Tax-Exempt Mtg. Bond Trust................. 3.850 09/01/1998 884,000
2,520,000 Perry Co., OH, Nursing Fac. Rev., Ser. 1996
(New Lexington Health Corp. Proj.)......................... 4.000 09/01/1998 2,520,000
640,000 Riverside, OH, Econ. Dev. Rev. (Riverside Assoc. Ltd. Proj.) 3.800 09/01/1998 640,000
4,915,000 Cuyahoga Co., OH, IDR (Halle Office Building)............... 4.015 10/01/1998 4,915,000
165,000 Franklin Co., OH, IDR (Pan Western Life).................... 3.650 10/01/1998 165,000
1,210,000 Miami Valley Tax-Exempt Mtg. Bond Trust..................... 4.880 10/15/1998 1,210,000
1,410,000 Clermont Co., OH, EDR (John Q. Hammons Proj.)............... 3.800 11/01/1998 1,410,000
615,000 Franklin Co., OH, IDR (GSW Proj.)........................... 3.750 11/01/1998 615,000
3,125,000 Ohio St. HFA MFH (Lincoln Park)............................. 3.850 11/01/1998 3,125,000
3,570,000 Richland Co., OH, IDR (Mansfield Sq. Proj.)................. 3.850 11/15/1998 3,570,000
585,000 Cuyahoga Co., OH, Health Care Rev........................... 3.950 12/01/1998 585,000
2,290,000 Franklin Co., OH, IDR (Leveque & Assoc. Proj.).............. 3.800 12/01/1998 2,290,000
905,000 Scioto Co., OH, Health Care Rev. Bonds (Hillview Retirement) 3.800 12/01/1998 905,000
1,000,000 Gallia Co., OH, IDR (Jackson Pike Assoc.)................... 3.700 12/15/1998 1,000,000
1,085,000 Ohio Company Tax-Exempt Mtg. Bond Trust, Ser. 2............. 3.900 12/15/1998 1,084,776
- -------------- ------------
$ 29,634,000 TOTAL ADJUSTABLE RATE PUT BONDS
- --------------
(Amortized Cost $29,634,147)................................ $29,634,147
------------
$322,290,777 TOTAL INVESTMENT SECURITIES -- 100.6%
==============
(Amortized Cost $322,516,570)............................... $322,516,570
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.6)% ............. (1,934,059)
------------
NET ASSETS-- 100.0% ........................................ $320,582,511
============
See accompanying notes to financial statements and notes to portfolios of
investments.
</TABLE>
<PAGE>
<TABLE>
FLORIDA TAX-FREE MONEY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 33.9% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 250,000 Puerto Rico Elec. Power Auth. Rev., Ser. O.................. 6.300% 07/01/1998 $ 250,000
200,000 Florida School Board Assoc. Lease Rev. (Orange Co. Proj.)... 6.800 07/01/1998 200,000
140,000 Florida St. GO.............................................. 7.000 07/01/1998 140,000
100,000 Parker, AZ, Street & Highway Rev. Proj. 1997, Ser. A........ 9.000 07/01/1998 100,000
155,000 Florida St. GO, Prerefunded @ 102........................... 7.000 07/01/1998 158,100
1,150,000 Dade Co., FL, GO, Ser. 1.................................... 6.750 07/01/1998 1,150,000
100,000 Brevard Co., FL, School Dist. COP, Ser. A................... 5.110 07/01/1998 100,000
150,000 Florida St. Div. Board Fin. Rev. (Dept. of Natural Resources) 4.300 07/01/1998 150,000
500,000 Seattle, WA, GO, Prerefunded @ 100.......................... 7.200 07/01/1998 500,000
100,000 Broward Co., FL, School Board COP........................... 6.750 07/01/1998 102,812
335,000 Clay Co., FL, School Board Master Lease Program COP......... 4.200 07/01/1998 335,000
300,000 Westfield, IN, High School Bldg. Corp. Rev., Ser. 1998...... 3.600 07/05/1998 300,000
435,000 Lawrence Twp., IN, School Bldg. Corp. Rev................... 3.750 07/05/1998 435,000
385,000 East Chicago, IN, Multi-School Bldg. Rev., Ser. 1998........ 4.000 07/15/1998 385,020
280,000 Lakeland, NY, Central School Dist. GO....................... 6.000 07/15/1998 280,244
835,000 Miami-Dade Co., FL, School Boards COP, Ser. A............... 4.250 08/01/1998 835,084
100,000 Lee Co., FL, School Board COP, Ser. A....................... 4.750 08/01/1998 100,074
500,000 Palm Beach Co., FL, School Board COP, Ser. A................ 4.150 08/01/1998 500,138
150,000 Indian Trail, FL, Water Control Dist. Impt. Rev............. 4.100 08/01/1998 150,043
100,000 Dade Co., FL, School Dist. GO............................... 6.400 08/01/1998 100,206
500,000 Dade Co., FL, School Dist. GO............................... 6.000 08/01/1998 500,941
250,000 Dade Co., FL, School Board COP (G. Holmes Braddock
High School)............................................... 4.375 08/01/1998 250,097
500,000 Seminole Co., FL, School Dist. GO........................... 5.400 08/01/1998 500,672
325,000 Dallas, TX, Tax Increment Fin. Reinvest. Zone, Tax Alloc.... 5.600 08/15/1998 325,656
200,000 Indian River Co., FL, Water & Sewer Rev., Ser. B............ 4.400 09/01/1998 200,180
1,000,000 Yakima Co., WA, BANS........................................ 4.125 09/01/1998 1,000,588
500,000 Aurora, IL, MFH Rev., Ser. 1988 (Fox Valley)................ 7.750 09/01/1998 502,424
150,000 Miami, FL, Spec. Rev........................................ 4.500 09/01/1998 150,160
360,000 Port St. Lucie, FL, Sales Tax Rev........................... 3.500 09/01/1998 360,000
100,000 Hollywood, FL, Water & Sewer Rev............................ 6.000 10/01/1998 100,507
100,000 Broward Co., FL, Airport Sales Rev., Ser. C................. 4.100 10/01/1998 100,060
250,000 Dade Co., FL, Aviation Rev., Ser. A......................... 5.150 10/01/1998 250,827
150,000 Dade Co., FL, Seaport Rev................................... 4.000 10/01/1998 150,090
200,000 Tallahassee, FL, Municipal Elec. Rev., Ser. A............... 4.900 10/01/1998 200,414
250,000 Destin, FL, Capital Impt. Rev., Prerefunded @ 102........... 7.100 10/01/1998 260,127
100,000 Jacksonville, FL, Elec. Auth. Rev........................... 9.750 10/01/1998 101,478
600,000 Indiana St. Univ., IN, Student Fees Rev., Ser. H............ 3.900 10/01/1998 600,140
425,000 Lake Superior St. Univ., MI, Rev............................ 4.500 11/15/1998 426,172
230,000 Clinton Co., IN, Jail Bldg. Corp. Rev....................... 3.900 11/15/1998 230,000
1,339,000 South Bay, FL, Subordinate Water & Sewer Rev. BANS,
Ser. 1998.................................................. 4.350 12/01/1998 1,340,864
320,000 Virginia Beach, VA, Dev. Auth. Lease Rev., Social Svcs. Fac. 4.300 12/01/1998 320,915
230,000 Grand Co., CO, School Dist. East Grand #2................... 3.700 12/01/1998 230,000
300,000 Sycamore, OH, Comm. School Dist. School Impt. GO, Ser. 1998. 3.700 12/01/1998 300,000
2,000,000 Merrimack Co., NH, TANS..................................... 3.780 12/30/1998 2,000,291
185,000 Escambia Co., FL, Utilities Auth. Rev., Ser. 1998A.......... 3.600 01/01/1999 185,000
1,000,000 Florida St. Board of Educ. Cap. Outlay GO, Ser. A........... 4.500 01/01/1999 1,003,160
500,000 Texas Turnpike Auth. Rev. (N. Dallas Tollway),
Prerefunded @ 102.......................................... 7.250 01/01/1999 523,462
<PAGE>
<CAPTION>
FLORIDA TAX-FREE MONEY FUND (Continued)
============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 33.9% RATE DATE VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
$ 300,000 West Palm Beach, FL, GO, Prerefunded @ 102.................. 6.000% 03/01/1999 $ 310,237
360,000 Dade Co., FL, School Board COP, Ser. A...................... 4.300 05/01/1999 361,394
2,500,000 Port St. Joe, FL, Cap. Impt. Rev. BANS, Ser. 1998........... 4.350 07/01/1999 2,507,700
- -------------- ------------
$ 21,489,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- --------------
(Amortized Cost $21,565,277)................................ $21,565,277
------------
<CAPTION>
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE RATE DEMAND NOTES-- 62.6% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 1,900,000 Broward Co., FL, HFA MFH (Margate Investment Proj.)......... 3.600% 07/01/1998 $ 1,900,000
1,000,000 Eustis, FL, Multi-Purpose Rev............................... 3.600 07/01/1998 1,000,000
3,800,000 Pinellas Co., FL, Health Fac. Auth. Rev. (Pooled Hosp. Loan) 3.900 07/01/1998 3,800,000
500,000 Pinal Co., AZ, IDA PCR (Magma Copper Co.)................... 3.900 07/01/1998 500,000
1,000,000 Palm Beach Co., FL, Water & Sewer Rev....................... 4.450 07/01/1998 1,000,000
3,800,000 Kentucky Econ. Dev. Fin. Auth., Ser. 1995 (Sisters
of Charity Nazareth)....................................... 3.800 07/01/1998 3,800,000
2,600,000 Jacksonville, FL, Health Fac. Auth. Rev., Ser. 1996
(Genesis Rehab. Hosp.)..................................... 4.000 07/01/1998 2,600,000
1,000,000 Hillsborough Co., FL, IDA PCR (Tampa Elec.)................. 4.100 07/01/1998 1,000,000
1,500,000 Trinity River, TX, IDR, Ser. 1997 (ADP Proj.)............... 4.000 07/01/1998 1,500,000
2,000,000 Orange Co., FL, IDR, Ser. 1997 (Univ. of Central Florida
Foundation Proj.).......................................... 3.600 07/01/1998 2,000,000
1,000,000 St. Petersburg, FL, HFA Rev., Ser. 1997 (Menorah
Manor Project)............................................. 3.550 07/01/1998 1,000,000
1,305,000 Florida HFA MFH, Ser. EEE (Carlton Arms II Proj.)........... 3.650 07/01/1998 1,305,000
1,735,000 Illinois Dev. Fin. Auth., MFH Rev. (Cobbler Square Proj.)... 4.250 07/01/1998 1,735,000
300,000 Indiana HFA, Ser. 1991 (Capital Access Pool)................ 3.600 07/01/1998 300,000
1,000,000 Indiana Health Fac. Fin. Auth. Rev. (Capital Access Pool)... 3.600 07/01/1998 1,000,000
1,300,000 Manatee Co., FL, HFA MFH Rev. (Harbour Proj. B)............. 3.600 07/01/1998 1,300,000
2,000,000 Boca Raton, FL, IDR (Parking Garage)........................ 3.875 07/02/1998 2,000,000
3,500,000 Iowa Financing Auth. Rev. (Burlington Medical Center)....... 3.650 07/02/1998 3,500,000
1,750,000 Harvard, IL, Health Care Fac. Rev., Ser. 1998............... 3.550 07/02/1998 1,750,000
1,600,000 Plant City, FL, Hosp. Rev. (South Florida Baptist Hosp.).... 3.600 07/02/1998 1,600,000
1,500,000 Marion Co., FL, HFA (Summer Trace Apts.).................... 3.600 07/02/1998 1,500,000
1,500,000 Marion Co., FL, HFA (Paddock Place Proj.)................... 3.600 07/02/1998 1,500,000
1,300,000 Jacksonville, FL, Health Fac. Rev. (Faculty Practice Assoc.) 3.650 07/02/1998 1,300,000
875,000 Volusia Co., FL, HFA MFH Rev., Ser. H (Sun Pointe Apts.).... 3.450 07/07/1998 875,000
- -------------- ------------
$ 39,765,000 TOTAL FLOATING & VARIABLE RATE DEMAND NOTES
- --------------
(Amortized Cost $39,765,000)................................ $39,765,000
------------
<CAPTION>
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT ADJUSTABLE RATE PUT BONDS-- 2.3% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 1,000,000 Putnam Co., FL, Dev. Auth. PCR, Ser. 1984D (Seminole
Elec. Coop.)............................................... 3.650% 12/15/1998 $ 1,000,000
450,000 Wheat Ridge, CO, IDR, Ser. 1984 (Pearse Electronics Proj.).. 4.180 06/01/1999 450,000
- -------------- ------------
$ 1,450,000 TOTAL ADJUSTABLE RATE PUT BONDS
- --------------
(Amortized Cost $1,450,000)................................. $ 1,450,000
------------
<PAGE>
<CAPTION>
FLORIDA TAX-FREE MONEY FUND (Continued)
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT COMMERCIAL PAPER-- 8.5% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 1,500,000 St. Lucie Co., FL, Rev...................................... 3.650% 07/07/1998 $ 1,500,000
1,400,000 Orange Co., FL, Health Fac. Auth. Rev....................... 3.750 07/08/1998 1,400,000
2,500,000 Orange Co., FL, Health Fac. Auth. Rev....................... 3.600 07/09/1998 2,500,000
- -------------- ------------
$ 5,400,000 TOTAL COMMERCIAL PAPER
- --------------
(Amortized Cost $5,400,000)................................. $ 5,400,000
------------
$ 68,104,000 TOTAL INVESTMENT SECURITIES-- 107.3%
- --------------
(Amortized Cost $68,180,277)................................ $68,180,277
LIABILITIES IN EXCESS OF OTHER ASSETS-- (7.3)% ............. ( 4,653,581 )
------------
NET ASSETS-- 100.00% ....................................... $63,526,696
=============
See accompanying notes to financial statements and notes to portfolios of
investments.
</TABLE>
<PAGE>
<TABLE>
TAX-FREE INTERMEDIATE TERM FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
==============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT MUNICIPAL BONDS RATE DATE VALUE
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
ARIZONA -- 2.7%
$ 400,000 Arizona Educ. Loan Mkt. Corp. Rev., Ser. A.................. 6.700% 03/01/2000 $ 415,496
600,000 Maricopa Co., AZ, School Dist. Rev., Ser. 1991C (Tempe Elem.) 8.000 07/01/2004 716,706
300,000 Tucson, AZ, Water Dist. Rev................................. 9.750 07/01/2010 439,422
------------
1,571,624
------------
CALIFORNIA -- 3.2%
600,000 Alameda Co., CA, IDR (Dicon Fiberoptics, Inc. Proj)......... 3.500 07/02/1998 600,000
460,000 Sacramento Co., CA, MFH ARPB (Fairway One Apts.)............ 5.875 02/01/2003 463,100
500,000 Santa Monica, CA, Redev. Agy. Lease Rev..................... 6.000 07/01/2003 540,230
250,000 California HFA Multi-Unit Rental Rev., Ser. B............... 6.500 08/01/2005 264,820
------------
1,868,150
------------
COLORADO -- 0.5%
300,000 Highland Ranch, CO, Metro Dist. GO, Ser. A.................. 5.000 12/01/2010 299,439
------------
FLORIDA -- 13.3%
500,000 Florida HFA MFH ARPB, Ser. 1978B (Hampton Lakes II Proj.)... 5.700 04/01/2001 505,910
200,000 Florida St. GO.............................................. 6.500 05/01/2004 202,836
1,000,000 Jacksonville, FL, Excise Tax Rev., Ser. B................... 5.400 10/01/2006 1,036,760
750,000 Hillsborough Co., FL, Solid Waste Rev....................... 5.500 10/01/2006 802,455
455,000 Pensacola, FL, Airport Rev., Ser. 1997B..................... 5.400 10/01/2007 484,261
1,000,000 Pasco Co., FL, HFA MFH Rev., Ser. 1997B (Cypress
Trail Apt. Proj.).......................................... 5.500 06/01/2008 1,041,070
1,345,000 Florida HFA MFA Sr. Lien, Ser. I-1.......................... 6.100 01/01/2009 1,399,109
1,000,000 Halifax Hosp. Medical Ctr., FL, Health Care Fac. Rev.,
Ser. 1998A................................................. 4.800 04/01/2010 985,630
365,000 Halifax Hosp. Medical Ctr., FL, Health Care Fac. Rev.,
Ser. 1998A................................................. 5.000 04/01/2011 363,609
455,000 Tampa, FL, Health Sys. Rev., Ser. A-1 (Catholic Health East) 5.250 11/15/2011 472,618
365,000 Halifax Hosp. Medical Ctr., FL, Health Care Fac. Rev.,
Ser. 1998A................................................. 5.000 04/01/2012 360,332
------------
7,654,590
------------
ILLINOIS -- 3.5%
1,000,000 Illinois HFA Rev. (Northwestern Medical Fac. Foundation).... 5.000 11/15/2012 995,890
1,000,000 Chicago, IL, Park Dist. GO, Ser. A.......................... 5.250 11/15/2012 1,024,050
------------
2,019,940
------------
INDIANA -- 8.7%
3,185,000 Purdue University, IN, COP, Prerefunded @ 102............... 6.250 07/01/2001 3,439,609
1,000,000 Indiana Bond Bank Special Prog. Rev., Ser. A-1.............. 6.650 01/01/2004 1,073,670
500,000 Indiana HFA Multi-Unit Mtg. Prog. Rev., Ser. 1992A.......... 6.600 01/01/2012 531,155
------------
5,044,434
------------
IOWA -- 2.1%
250,000 Iowa Student Loan Liquidity Corp. Rev....................... 6.400 07/01/2004 269,563
365,000 Iowa HFA Rev................................................ 6.500 07/01/2006 386,396
240,000 Iowa Student Loan Liquidity Corp. Rev....................... 6.600 07/01/2008 255,909
250,000 Cedar Rapids, IA, Hosp. Fac. Rev. (St. Luke's
Methodist Hosp.)........................................... 6.000 08/15/2009 273,125
------------
1,184,993
------------
KENTUCKY -- 3.1%
250,000 Kentucky EDR, Ser. 1995 (Sisters of Charity of Nazareth
Hlth. Sys.)................................................ 3.800 07/01/1998 250,000
675,000 Owensboro, KY, Elec. Light & Power Rev., Prerefunded @ 102.. 10.250 01/01/2000 749,453
750,000 Kentucky St. Turnpike Auth. EDR (Revitalization Proj.)...... 5.250 07/01/2005 791,760
------------
1,791,213
------------
<PAGE>
<CAPTION>
TAX-FREE INTERMEDIATE TERM FUND (Continued)
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT MUNICIPAL BONDS RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
LOUISIANA -- 1.7%
$ 440,000 Louisiana Public Fac. Auth. Rev. (Medical Ctr. of Louisiana) 6.000% 10/15/2003 $ 469,528
500,000 West Ouachita Parish, LA, School Dist. GO, Ser. A........... 6.700 03/01/2006 542,330
------------
1,011,858
------------
MASSACHUSETTS -- 4.0%
750,000 Massachusetts St. Indust. Fin. Agy. ARPB
(Asahi/America, Inc.)...................................... 5.100 03/01/1999 756,495
500,000 New England Educ. Loan Mkt. Corp. Rev., Ser. 1992B.......... 6.600 09/01/2002 542,500
500,000 New England Educ. Loan Mkt. Corp. Rev., Ser. 1992A.......... 6.500 09/01/2002 540,610
450,000 Massachusetts St. Indust. Fin. Agy. Rev., Ser. 1997
(Hudner Assoc.)............................................ 5.000 01/01/2008 460,597
------------
2,300,202
------------
MICHIGAN -- 2.7%
1,000,000 Michigan St. Bldg. Auth. Rev., Ser. II...................... 6.400 10/01/2004 1,085,540
475,000 Battle Creek, MI, EDR Rev. (Kellogg Co Proj.)............... 5.125 02/01/2009 488,347
------------
1,573,887
------------
MISSISSIPPI -- 2.7%
500,000 Mississippi Higher Educ. Rev., Ser. B....................... 6.100 07/01/2001 521,525
1,000,000 Rankin Co., MS, School Dist. GO............................. 5.250 02/01/2010 1,052,320
------------
1,573,845
------------
NEBRASKA -- 1.1%
620,000 Nebraska Invest. Fin. Auth. Rev., Ser. 1989 (Foundation
for Educ. Fund), Escrowed to Maturity...................... 7.000 11/01/2009 635,984
------------
NEVADA -- 2.2%
1,000,000 Las Vegas, NV, GO, Sewer Impt. Rev., Prerefunded @ 102...... 6.500 04/01/2002 1,098,320
185,000 Washoe Co., NV, GO.......................................... 7.375 07/01/2009 195,160
------------
1,293,480
------------
NEW YORK -- 3.6%
500,000 New York Local Govt. Asst. Corp. Rev., Ser. 1991B........... 7.000 04/01/2002 545,325
1,300,000 New York St. Twy Auth. Local Hwy. & Impt. Rev............... 5.500 04/01/2006 1,390,337
------------
1,935,662
------------
NORTH CAROLINA -- 2.0%
1,065,000 Durham, NC, COP, Prerefunded @ 102.......................... 6.375 12/01/2001 1,163,289
------------
<PAGE>
<CAPTION>
TAX-FREE INTERMEDIATE TERM FUND (Continued)
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT MUNICIPAL BONDS RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
OHIO -- 20.0%
$ 700,000 Franklin Co., OH, Rev., Ser. 1993 (American Chemical Soc.).. 5.500% 04/01/2000 $ 715,890
500,000 Franklin Co., OH, Rev. (Online Computer Library Ctr.)....... 5.500 04/15/2000 513,545
670,000 Fairfield, OH, IDR ARPB (Skyline Chili, Inc.)............... 5.000 09/01/2000 670,663
270,000 Warren Co., OH, Hosp. Fac. Rev. (Otterbein Home)............ 7.000 07/01/2003 296,209
1,105,000 Ohio St. EDR Ohio Enterprise Bond Fd. (Smith Steelite Proj.) 5.600 12/01/2003 1,165,554
500,000 Hamilton Co., OH, Hosp. Fac. Rev. (Episcopal
Retirement Home)........................................... 6.600 01/01/2004 541,675
360,000 Ohio St. EDR Ohio Enterprise Bond Fd. (Cheryl & Co.)........ 5.500 12/01/2004 382,957
1,000,000 Ohio St. Special Obligation Elem. & Secondary Educ.
Fac. Rev. ................................................. 5.000 12/01/2004 1,039,440
1,005,000 Franklin Co., OH, Health Care Fac. Rev. (First
Comm. Village)............................................. 6.000 06/01/2006 1,066,144
400,000 Painesville, OH, Elec. Rev.................................. 6.000 11/01/2006 429,964
530,000 Toledo, OH, GO.............................................. 6.000 12/01/2006 589,106
840,000 Kent State University General Receipts Rev.................. 6.000 05/01/2007 934,206
500,000 Ohio St. IDR, Ser. 1997 (Bomaine Corporation Proj.)......... 5.500 11/01/2007 506,090
749,067 Columbus, OH, Special Assessment GO......................... 5.050 04/15/2008 759,764
800,000 West Clermont, OH, LSD GO................................... 6.150 12/01/2008 884,040
500,000 Hamilton Co., OH, Hosp. Fac. Rev. (Bethesda Hosp.).......... 7.000 01/01/2009 507,545
500,000 Jefferson Co., OH, County Jail Construction GO.............. 4.900 12/01/2011 505,975
------------
11,508,767
------------
PENNSYLVANIA -- 4.6%
500,000 Pennsylvania St., IDR, Ser. A, Prerefunded @ 102............ 7.000 07/01/2001 550,625
500,000 Pennsylvania St., Higher Educ. Fac. Auth. Rev., Ser. A
(Univ. of Pennsylvania Health Serv.)........................ 6.000 01/01/2006 548,645
500,000 Pennsylvania Fin. Auth. Muni. Cap. Impt. Proj. Rev.......... 6.600 11/01/2009 553,895
1,000,000 Montgomery Co., PA, GO...................................... 4.600 10/15/2011 985,470
------------
2,638,635
------------
SOUTH CAROLINA -- 2.3%
525,000 South Carolina St. GO, Ser. A............................... 6.000 03/01/2004 560,238
725,000 Richland-Lexington, SC, Airport Dist. Rev., Ser. 1995
(Columbia Metro.).......................................... 6.000 01/01/2008 782,333
------------
1,342,571
------------
SOUTH DAKOTA -- 1.0%
510,000 South Dakota Student Loan Assistance Corp. Rev., Ser. A..... 7.600 08/01/2004 569,277
------------
TENNESSEE -- 2.0%
525,000 Southeast, TN, Tax-Exempt Mtg. Trust ARPB, Ser. 1990........ 7.250 04/01/2003 588,494
500,000 Nashville, TN, Metro. Airport Rev., Ser. C.................. 6.625 07/01/2007 543,590
------------
1,132,084
------------
TEXAS -- 7.2%
500,000 Houston, TX, Sr. Lien Rev., Ser. A (Hotel
Tax & Parking Fac.), Prerefunded @ 100..................... 7.000 07/01/2001 541,750
350,000 Univ. of Texas, TX, Rev., Ser. B, Prerefunded @102.......... 6.750 08/15/2001 384,174
1,000,000 Texas National Research Lab. Fin. Corp. Lease Rev.,
Prerefunded @ 102.......................................... 6.850 12/01/2001 1,107,390
50,000 N. Central, TX, Health Fac. Rev. (Baylor Health Care),
Indexed INFLOS, Prerefunded @ 102.......................... 7.950 05/15/2002 55,400
500,000 N. Texas Higher Educ. Student Loan Rev., Ser. 1991A......... 6.875 04/01/2002 529,395
450,000 N. Central, TX, Health Fac. Rev. (Baylor Health Care),
Indexed INFLOS............................................. 7.950 05/15/2008 493,232
321,908 Midland, TX, HFC Rev., Ser. A-2............................. 8.450 12/01/2011 350,063
650,000 Univ. of Texas, TX, Rev., Ser. B............................ 6.750 08/15/2013 708,240
------------
4,169,644
------------
<PAGE>
<CAPTION>
TAX-FREE INTERMEDIATE TERM FUND (Continued)
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT MUNICIPAL BONDS RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
UTAH -- 1.5%
$ 870,000 Utah St. School Dist. Fin. Corp. Rev., Mandatory Redemption. 8.375% 02/15/2002 $ 872,958
------------
VIRGINIA -- 1.2%
700,000 Virginia St. Resource Auth. Sys. Rev........................ 4.875 05/01/2013 694,484
------------
WASHINGTON -- 2.5%
335,000 Washington St. GO, Ser. A, Prerefunded @ 100................ 6.400 03/01/2001 354,966
1,000,000 Washington St. Motor Vehicle Fuel Tax GO.................... 6.000 09/01/2004 1,074,550
------------
1,429,516
------------
WISCONSIN -- 0.7%
430,000 Wisconsin St. Health and Educ. Fac. Auth. Rev. (Agnesian
Healthcare, Inc.).......................................... 4.900 07/01/2011 426,977
- -------------- ------------
$ 54,465,975 TOTAL MUNICIPAL BONDS-- 100.1%
==============
(Amortized Cost $55,269,289)................................ $57,707,503
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.1)% ............. (64,516)
------------
NET ASSETS-- 100.0% ........................................ $57,642,987
============
See accompanying notes to financial statements and notes to portfolios of
investments.
</TABLE>
<PAGE>
<TABLE>
OHIO INSURED TAX-FREE FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
<CAPTION>
==============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 95.4% RATE DATE VALUE
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
$ 200,000 Montgomery Co., OH, Hosp. Rev. (Sisters of Charity),
Prerefunded @ 102.......................................... 6.625% 05/15/2001 $ 216,486
250,000 Franklin Co., OH, IDR (1st Comm. Village Healthcare),
Crossover Refunded @ 101.5.................................. 10.125 08/01/2001 295,818
30,000 Clermont Co., OH, Hosp. Fac. Rev., Ser. A (Mercy
Health Sys.), Prerefunded @ 100............................ 7.500 09/01/2001 33,047
460,000 Westerville, Minerva Park & Blendon, OH, Joint Hosp.
Dist. Rev. (St. Ann's), Prerefunded @ 102.................. 7.100 09/15/2001 509,864
1,000,000 Clermont Co., OH, Hosp. Fac. Rev. (Mercy Health Sys.),
Prerefunded @ 102.......................................... 6.730 09/25/2001 1,098,820
850,000 Alliance, OH, Waterworks Sys. Rev., Prerefunded @ 102....... 6.650 10/15/2001 933,682
500,000 Clermont Co., OH, Sewer Sys. Rev., Ser. 1991,
Prerefunded @ 102.......................................... 7.100 12/01/2001 557,450
5,000 Cleveland, OH, Waterworks Impt. Rev., Ser. 1992B (First Mtg.),
Prerefunded @ 102........................................... 6.500 01/01/2002 5,480
1,000,000 Kent St. Univ. General Receipts Rev., Prerefunded @ 102..... 6.500 05/01/2002 1,101,820
500,000 Franklin Co., OH, Hosp. Rev., Ser. 1991 (Mt. Carmel),
Prerefunded @ 102.......................................... 6.750 06/01/2002 555,455
500,000 Mahoning Co., OH, Hosp. Impt. Rev. (YHA, Inc.),
Prerefunded @ 100.......................................... 7.000 10/15/2002 555,450
675,000 Reynoldsburg, OH, CSD GO, Prerefunded @102.................. 6.550 12/01/2002 752,774
145,000 Ohio St. Bldg. Auth. Rev. (Columbus St. Proj.),
Prerefunded @ 100.......................................... 10.125 04/01/2003 172,775
35,000 Ohio St. Bldg. Auth. Rev. (Frank Lausch Proj.),
Prerefunded @ 100.......................................... 10.125 04/01/2003 41,704
230,000 Summit Co., OH, GO, Ser. A, Prerefunded @ 100............... 6.900 08/01/2003 258,589
290,000 Alliance, OH, CSD GO........................................ 6.900 12/01/2006 321,288
500,000 Mansfield, OH, Hosp. Impt. Rev. (Mansfield General)......... 6.700 12/01/2009 546,575
250,000 Ohio St. Water Dev. Auth. & Impt. Rev., Ser. I,
Escrowed to Maturity....................................... 7.000 12/01/2009 293,158
500,000 Ohio Capital Corp. MFH Rev., Ser. 1990A..................... 7.500 01/01/2010 527,555
500,000 Hamilton, OH, Water Sys. Mtg. Rev., Ser. 1991A.............. 6.400 10/15/2010 542,330
500,000 Butler Co., OH, Hosp. Fac. Rev. (Middletown Regional Hosp.). 6.750 11/15/2010 547,730
1,000,000 Canton, OH, Waterworks Sys. GO, Ser. 1995................... 5.750 12/01/2010 1,086,490
495,000 Cleveland, OH, Waterworks Impt Rev., Ser. F (First Mtg.).... 6.500 01/01/2011 537,580
255,000 Cuyahoga Co., OH, Hosp. Rev. (University Hosp.),
Escrowed to Maturity....................................... 9.000 06/01/2011 326,576
450,000 Ohio HFA SFM Rev., Ser. 1991D............................... 7.000 09/01/2011 476,784
500,000 Greene Co., OH, Water Sys. Rev.............................. 6.850 12/01/2011 549,440
365,000 Bexley, OH, CSD GO.......................................... 7.125 12/01/2011 454,002
600,000 Westerville, OH, Water Sys. Impt. GO........................ 6.450 12/01/2011 660,828
530,000 Urbana, OH, Wastewater Impt. GO............................. 7.050 12/01/2011 595,482
500,000 Maple Heights, OH, Various Purpose GO....................... 7.000 12/01/2011 556,545
500,000 Cleveland, OH, GO, Ser. A................................... 6.375 07/01/2012 550,295
255,000 Summit Co., OH, GO, Ser. A.................................. 6.900 08/01/2012 278,740
500,000 Worthington, OH, CSD GO..................................... 6.375 12/01/2012 543,890
500,000 Strongsville, OH, CSD GO.................................... 5.375 12/01/2012 532,875
500,000 Summit Co., OH, Various Purpose GO.......................... 6.625 12/01/2012 545,895
95,000 Ohio St. Higher Educ. Fac. Comm. Rev........................ 7.250 12/01/2012 103,268
500,000 Warrensville Heights, OH, GO................................ 6.400 12/01/2012 548,270
1,095,000 West Clermont, OH, LSD GO................................... 6.900 12/01/2012 1,271,886
500,000 Brunswick, OH, CSD GO....................................... 6.900 12/01/2012 550,225
290,000 Ohio HFA SFM Rev., Ser. 1990D............................... 7.500 09/01/2013 305,126
1,000,000 Lorain Co., OH, Hosp. Rev. (Catholic Health Care Partners).. 5.625 09/01/2014 1,062,610
500,000 Ohio St. Bldg. Auth Rev., Ser. 1994A (Juvenille
Correctional Bldg.)........................................ 6.600 10/01/2014 564,495
460,000 Bedford Heights, OH, GO..................................... 6.500 12/01/2014 517,969
290,000 Garfield Heights, OH, Various Purpose GO.................... 6.300 12/01/2014 323,341
530,000 Ottawa Co., OH, GO.......................................... 5.750 12/01/2014 568,605
1,000,000 Portage Co., OH, GO......................................... 6.200 12/01/2014 1,109,450
290,000 Northwest, OH, LSD GO....................................... 7.050 12/01/2014 320,502
<PAGE>
<CAPTION>
OHIO INSURED TAX-FREE FUND (Continued)
============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 95.4% RATE DATE VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
$ 1,000,000 Clermont Co., OH, Hosp. Fac. Rev. (Mercy Health Sys.)....... 5.875% 09/01/2015 $ 1,059,510
600,000 Toledo-Lucas Co., OH, Convention Ctr. Rev................... 5.700 10/01/2015 641,568
400,000 Warren, OH, Waterworks Rev.................................. 5.500 11/01/2015 427,788
1,420,000 Stow, OH, Safety Center Const. GO........................... 6.150 12/01/2015 1,558,194
1,000,000 Tuscarawas Valley, OH, LSD GO, Ser. 1995.................... 6.600 12/01/2015 1,142,820
1,700,000 Massillon, OH, GO........................................... 6.625 12/01/2015 1,945,446
500,000 Ohio St. Higher Educ. Fac. Rev. (Univ. of Dayton)........... 6.750 12/01/2015 555,805
500,000 Delaware, OH, CSD GO........................................ 5.750 12/01/2015 530,425
1,000,000 Buckeye Valley, OH, LSD GO.................................. 6.850 12/01/2015 1,227,460
750,000 Columbus-Polaris Hsg. Corp. Ohio Mtg. Rev.,
Prerefunded @ 10........................................... 7.400 01/01/2016 870,795
500,000 Cleveland, OH, Waterworks Impt. Rev., Ser. F (First Mtg.)... 6.250 01/01/2016 538,990
500,000 Ohio St. Air Quality Dev. Rev., Ser. A (Ohio Edison)........ 7.450 03/01/2016 534,300
316,000 Ohio HFA SFM Rev., Ser. 1990F............................... 7.600 09/01/2016 334,581
846,000 Ohio HFA SFM Rev., Ser. 1991D............................... 7.050 09/01/2016 895,034
500,000 Celina, OH, Wastewater Sys. Mtg. Rev........................ 6.550 11/01/2016 539,565
1,000,000 Cleveland, OH, Public Power Sys. Rev., Ser. 1............... 7.000 11/15/2016 1,152,810
750,000 Montgomery Co., OH, Hosp. Rev. (Miami Valley Hosp.)......... 6.250 11/15/2016 815,145
590,000 Garfield Heights, OH, Various Purpose GO.................... 7.050 12/01/2016 639,513
1,000,000 Greater Cleveland, OH, Regional Transit Auth. GO............ 5.650 12/01/2016 1,055,150
815,000 Butler Co., OH, GO.......................................... 5.750 12/01/2016 869,263
2,250,000 North Olmsted, OH, GO....................................... 5.000 12/01/2016 2,236,522
1,260,000 Cleveland, OH, Airport Sys. Rev., Ser. C.................... 5.125 01/01/2017 1,260,542
800,000 Ohio St. Bldg. Auth. Rev. (Adult Correctional Bldg.)........ 5.600 04/01/2017 839,632
750,000 Butler Co., OH, Transportation Impt. Dist., Ser. A.......... 5.125 04/01/2017 748,688
1,000,000 Lorain Co., OH, Hosp. Rev................................... 5.625 09/01/2017 1,052,040
500,000 Toledo, OH, Sewer Sys. Rev.................................. 6.350 11/15/2017 558,565
1,000,000 Mason, OH, CSD GO........................................... 5.300 12/01/2017 1,025,040
755,000 Dayton, OH, GO.............................................. 5.000 12/01/2017 747,563
1,330,000 Ohio St. Univ. COP (Agriculture Tech. Inst.)................ 5.050 12/01/2017 1,307,643
1,000,000 Rocky River, OH, CSD GO, Ser. 1998.......................... 5.375 12/01/2017 1,051,310
1,000,000 Hamilton Co., OH, Sewer Sys. Impt. Rev., Ser. A............. 5.000 12/01/2017 990,150
1,400,000 Cuyahoga Co., OH, Util. Sys. Impt. Rev. (Medical
Center Proj.).............................................. 5.125 02/15/2018 1,390,494
1,660,000 Franklin Co., OH, Hosp. Rev. (Holy Cross Health Sys.)....... 5.000 06/01/2018 1,625,090
500,000 Ohio St. Air Quality Dev. Rev., Ser. 1990B (Ohio Edison).... 7.100 06/01/2018 534,625
1,265,000 Defiance, OH, Waterworks Sys. GO............................ 5.650 12/01/2018 1,339,369
1,000,000 Hamilton Co., OH, Sales Tax Rev. (Football Stadium Proj.)... 5.000 12/01/2018 984,870
1,000,000 S. Euclid-Lyndhurst, OH, CSD GO, Ser. 1996.................. 6.400 12/01/2018 1,135,060
500,000 Seneca Co., OH, GO (Jail Fac.).............................. 6.500 12/01/2018 550,835
500,000 Newark, OH, Water Sys. Impt. Rev............................ 6.000 12/01/2018 544,560
1,000,000 Little Miami, OH, LSD GO.................................... 5.000 12/01/2018 986,100
500,000 Crawford Co., OH, GO........................................ 6.750 12/01/2019 569,915
1,000,000 Butler Co., OH, Sales Tax Rev............................... 5.000 12/15/2019 981,910
360,000 Cuyahoga Co., OH, Hosp. Rev. (University Hosp.)............. 6.250 01/15/2020 387,047
1,000,000 Alliance, OH, Waterworks Sys. Rev........................... 5.000 11/15/2020 977,550
1,210,000 Greene Co., OH, Sewer Sys. Rev.............................. 5.125 12/01/2020 1,205,789
1,000,000 Ohio St. Air Quality Dev. Rev., Ser. 1985A (Columbus
Southern Power)............................................ 6.375 12/01/2020 1,086,150
15,000 Puerto Rico, HFC SFM Rev., Ser. A........................... 7.800 10/15/2021 15,310
1,750,000 Cuyahoga Co., OH, Hosp. Rev., Ser. I (Walker Center)........ 5.000 01/01/2023 1,699,460
1,000,000 Ohio St. Air Quality Dev. Rev. (Penn Power)................. 6.450 05/01/2027 1,086,270
- -------------- ------------
$ 66,412,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- --------------
(Amortized Cost $66,380,117)................................ $71,061,280
------------
<PAGE>
<CAPTION>
OHIO INSURED TAX-FREE FUND (Continued)
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE RATE DEMAND NOTES-- 1.5% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 1,100,000 Hamilton Co., OH, Waterworks Sys. Rev. (Health Alliance).... 3.550% 07/01/1998 $ 1,100,000
- -------------- ------------
(Amortized Cost $1,100,000)
$ 67,512,000 TOTAL INVESTMENT SECURITIES-- 96.9%
==============
(Amortized Cost $67,480,117)................................ $72,161,280
OTHER ASSETS IN EXCESS OF LIABILITIES-- 3.1% ............... 2,342,564
------------
NET ASSETS-- 100.0% ........................................ $74,503,844
============
See accompanying notes to financial statements and notes to portfolios of
investments.
</TABLE>
<PAGE>
<TABLE>
KENTUCKY TAX-FREE FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS-- 101.0% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 90,000 Jefferson Co., KY, Capital Proj. Corp. Rev., Ser. A......... 0.000% 08/15/1999 $ 85,606
200,000 Owensboro, KY, Electric Light & Power Rev.,
Prerefunded @ 102.......................................... 10.250 01/01/2000 222,060
200,000 Mt. Sterling, KY, Lease Rev., Kentucky League of Cities..... 5.625 03/01/2003 210,398
615,000 Kentucky St. Turnpike Auth. Resource Recovery Road Rev.,
Escrowed to Maturity....................................... 6.125 07/01/2007 659,784
50,000 Lexington-Fayette Urban Co., KY, Airport Corp.,
First Mtg. Rev. ........................................... 7.750 04/01/2008 51,493
450,000 Ashland, KY, PCR (Ashland Oil, Inc.)........................ 7.375 07/01/2009 479,331
275,000 Kentucky St.Turnpike Auth. Resource Recovery Road Rev.,
Ser. A..................................................... 6.000 07/01/2009 275,508
370,000 Kentucky St. EDR, Ser. A (South Central Nursing)............ 6.000 07/01/2011 403,581
250,000 Kentucky Higher Educ. Student Loan Rev., Ser. D............. 7.100 12/01/2011 269,457
200,000 Univ. of Louisville, KY, Rev., Ser. H....................... 5.875 05/01/2012 213,974
400,000 Kentucky St. EDA Hosp. Sys. Rfdg. and Impt. Rev.
(Appalachian Reg. Healthcare).............................. 5.800 10/01/2012 416,508
725,000 Boone Co., KY, Public Properties Corp. Sewer Sys. Rev....... 5.150 12/01/2012 733,497
305,000 Fern Creek, KY, Fire Protection Dist. Hldg. Co. Rev.
(Fire Station No. 2)....................................... 5.750 01/15/2014 316,017
350,000 Richmond, KY, Water, Gas & Sewer Rev., Ser. A.............. 5.000 07/01/2015 349,206
350,000 Kentucky St. EDA, Ser. 1998A (Catholic Health).............. 5.000 12/01/2018 342,535
200,000 Kentucky Area Dev. Dist. Fin. Trust Lease Prog. Rev.
(Calloway Fire)............................................ 5.600 12/01/2018 202,856
295,000 Ashland, KY, Solid Waste Rev. (Ashland Oil, Inc. Proj.)..... 7.200 10/01/2020 321,674
350,000 Lexington-Fayette Co., KY, Proj. Rev.
(University of Kentucky Alumni Assn., Inc.)................ 5.000 11/01/2020 343,511
260,000 Greater Kentucky Hsg Assistance Corp. Mtg. Rev., Ser. A
(FHA, Osage, Sec. 8)....................................... 5.350 07/01/2022 260,081
270,000 Greater Kentucky Hsg Assistance Corp. Mtg. Rev., Ser. A..... 6.250 07/01/2022 275,759
350,000 Kenton Co., KY, Public Properties Corp. Rev., Ser. A........ 5.000 03/01/2023 339,360
400,000 Kentucky St. EDR Fin. Auth. Health Care Fac. Rev., Ser. 1998
(Christian Church Homes).................................... 5.375 11/15/2023 393,712
250,000 Louisville & Jefferson Co., KY, Regional Airport Auth.
Sys. Rev., Ser. A.......................................... 5.000 07/01/2025 241,033
- -------------- ------------
$ 7,205,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- --------------
(Amortized Cost $7,263,205)................................. $ 7,406,941
------------
<CAPTION>
=============================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE RATE DEMAND NOTES-- 1.4% RATE DATE VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 100,000 Kentucky St. EDR, Ser. 1995 (Sisters of Charity of
Nazareth Hlth. Sys.)....................................... 3.800% 07/01/1998 $ 100,000
- -------------- ------------
(Amortized Cost $100,000)
$ 7,305,000 TOTAL INVESTMENT SECURITIES-- 102.4%
==============
(Amortized Cost $7,363,205)................................. $ 7,506,941
LIABILITIES IN EXCESS OF OTHER ASSETS-- (2.4)% ............. ( 177,111 )
------------
NET ASSETS-- 100.0% ........................................ $ 7,329,830
============
See accompanying notes to financial statements and notes to portfolios of
investments.
</TABLE>
<PAGE>
NOTES TO PORTFOLIOS OF INVESTMENTS
June 30, 1998
================================================================================
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
June 30, 1998.
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.
<TABLE>
<CAPTION>
PORTFOLIO ABBREVIATIONS:
<S> <C>
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 Revenue 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
</TABLE>
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
================================================================================
LOGO: ARTHUR ANDERSEN LLP
To the Shareholders and Board of Trustees of Countrywide Tax-Free Trust:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments of Countrywide Tax-Free Trust (comprising,
respectively, the Tax-Free Money Fund, California Tax-Free Money Fund, Ohio
Tax-Free Money Fund, Florida Tax-Free Money Fund, Tax-Free Intermediate Term
Fund, Ohio Insured Tax-Free Fund and Kentucky Tax-Free Fund) (a Massachusetts
business trust) as of June 30, 1998, and (i) for the Tax-Free Money Fund,
California Tax-Free Money Fund, Ohio Tax-Free Money Fund, Florida Tax-Free Money
Fund, Tax-Free Intermediate Term Fund, Ohio Insured Tax-Free Fund the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years then ended and the financial highlights for
the periods indicated thereon and (ii) for the Kentucky Tax-Free Fund the
related statements of operations, statements of changes in net assets and the
financial highlights for the ten-month period ended June 30, 1998 and the year
ended August 31, 1997. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits. The financial statements and financial highlights for the Kentucky
Tax-Free Fund for the period ended August 31, 1996 were audited by other
auditors whose report dated October 18, 1996, expressed an unqualified opinion
on those financial statements and financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1998, by correspondence with custodians and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights audited by us
and referred to above present fairly, in all material respects, the financial
position of each of the respective portfolios constituting Countrywide Tax-Free
Trust as of June 30, 1998, the results of their operations for the year then
ended, the changes in their net assets for each of the two years then ended, and
the financial highlights for the periods referred above, in conformity with
generally accepted accounting principles.
/s/ Arthur Andersen LLP
Cincinnati, Ohio,
August 7, 1998
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> COUNTRYWIDE TAX FREE TRUST
<SERIES>
<NUMBER> 1
<NAME> TAX-FREE MONEY FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 36,707,536
<INVESTMENTS-AT-VALUE> 36,707,536
<RECEIVABLES> 809,049
<ASSETS-OTHER> 325,444
<OTHER-ITEMS-ASSETS> 8,908
<TOTAL-ASSETS> 37,850,937
<PAYABLE-FOR-SECURITIES> 438,641
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 28,853
<TOTAL-LIABILITIES> 467,494
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 37,384,479
<SHARES-COMMON-STOCK> 37,394,922
<SHARES-COMMON-PRIOR> 30,137,162
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,036)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 37,383,443
<DIVIDEND-INCOME> 0
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