Tax-Exempt
================================================================================
SEMI-ANNUAL REPORT
DECEMBER 31, 1998
(UNAUDITED)
- --------------------------------------------------------------------------------
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
================================================================================
[LOGO] Countrywide
------------------
Investments
TABLE OF CONTENTS
================================================================================
Letter From the Chairman ............................................ 2
Letter From the President ........................................... 3
Statements of Assets and Liabilities ................................ 4-7
Statements of Operations ............................................ 8-11
Statements of Changes in Net Assets ................................. 12-15
Financial Highlights ................................................ 16-23
Notes to Financial Highlights ....................................... 24-30
Portfolios of Investments:
Tax-Free Money Fund ............................................ 31-32
California Tax-Free Money Fund ................................. 33-34
Ohio Tax-Free Money Fund ....................................... 35-39
Florida Tax-Free Money Fund .................................... 40-42
Tax-Free Intermediate Term Fund ................................ 43-46
Ohio Insured Tax-Free Fund ..................................... 47-49
Kentucky Tax-Free Fund ......................................... 50
Notes to Portfolios of Investments .................................. 51
1
<PAGE>
LETTER FROM THE CHAIRMAN
================================================================================
Dear Shareholders:
As we approach our 30th anniversary, it is imperative to reflect upon the dreams
that have been realized since David Loeb and I founded Countrywide Credit
Industries, Inc. Countrywide has far exceeded our vision of a full-service
mortgage company that would provide homeownership opportunities for millions of
people across the country. Since our inception in 1969, Countrywide has
strategically broadened its scope to offer a complete line of finance-related
products and services that augment company profits, capitalize core competencies
and enhance customer retention. Today, Countrywide is highly regarded as a
skilled provider of diversified products and services.
We are committed to creating value for our shareholders by offering a variety of
investment opportunities. The Countrywide Family of Funds is comprised of an
innovative financial product line designed to meet the diverse needs of our
investors. There are currently 17 funds offered through Countrywide Investments.
Each fund is designed to fulfill specific financial goals. As the merger and
acquisition team continues to add new funds, shareholders will be provided with
an even broader range of investment choices. Countrywide continues to build
shareholder value by capitalizing on opportunities and pioneering innovative
strategies based on stable, long-term performance. 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 now has more than 2 million customers which represents a servicing
portfolio of over $200 billion. With more than 500 offices nationwide and over
11,000 employees, Countrywide remains focused on steady growth. The diverse line
of Countrywide funds continues to be a critical part of our mortgage lending and
servicing operations.
Countrywide is committed to the needs of our investors. As we look to the
future, Countrywide will continue to search for and offer financial products and
services that will increase shareholder value.
Sincerely,
/s/ Angelo R. Mozilo
Angelo R. Mozilo
Chairman & Chief Executive Officer
2
<PAGE>
LETTER FROM THE PRESIDENT
================================================================================
Dear Fellow Shareholder:
We are pleased to present the Countrywide Tax-Free Trust semi-annual report for
the six months ended December 31, 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.
By many measures 1998 was one of the most volatile years for financial markets
in more than a decade. Global market turmoil eliminated most of the stock
market's gains in the third quarter, but stocks roared back to post a profitable
fourth quarter. Earnings growth should remain positive for the stock market over
the long-term. Short-term, we expect continued volatility, especially for those
stocks that have experienced a dramatic increase in price.
Fixed-income markets did not escape the turbulence of 1998. In August there was
a move towards risk aversion and a dramatic "flight to quality and liquidity"
sparked by concerns about global recession. Widespread selling of riskier bonds
occurred, and even high quality corporate bonds sold off relative to Treasury
bonds. By mid-November, the Federal Reserve cut interest rates three times,
calming the market and reversing the flight to quality. The net effect of this
turbulence was that "safe" bonds outperformed "risky" bonds for the first time
since 1990.
Looking ahead, we expect that yield spreads will continue to narrow relative to
Treasury yields. The reversal of the flight to quality also will continue with
other fixed-income instruments performing better than Treasuries on a relative
basis. In particular, long-term municipal bonds and long-term Treasuries are
trading at nearly the same yield level, providing an attractive opportunity for
tax-conscious investors. This is a truly unique situation, one that has occurred
rarely in the past.
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
3
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998 (Unaudited)
================================================================================
CALIFORNIA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
- --------------------------------------------------------------------------------
ASSETS
Investment securities:
At acquisition cost ....................... $ 28,787,711 $ 49,916,780
============ ============
At amortized cost ......................... $ 28,746,336 $ 49,850,457
============ ============
At market value (Note 2) .................. $ 28,746,336 $ 49,850,457
Cash ......................................... 344,600 --
Interest receivable .......................... 342,633 361,400
Other assets ................................. 15,444 16,490
------------ ------------
TOTAL ASSETS .............................. 29,449,013 50,228,347
------------ ------------
LIABILITIES
Bank overdraft ............................... -- 528,053
Dividends payable ............................ 991 6,522
Payable to affiliates (Note 4) ............... 8,451 36,771
Other accrued expenses and liabilities ....... 6,293 5,205
------------ ------------
TOTAL LIABILITIES ......................... 15,735 576,551
------------ ------------
NET ASSETS ................................... $ 29,433,278 $ 49,651,796
============ ============
Net assets consist of:
Paid-in capital .............................. $ 29,433,911 $ 49,657,792
Accumulated net realized losses
from security transactions ................ (633) (5,996)
------------ ------------
Net assets ................................... $ 29,433,278 $ 49,651,796
============ ============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) (Note 5) .................... 29,444,354 49,657,792
============ ============
Net asset value, offering price and
redemption price per share (Note 2) ....... $ 1.00 $ 1.00
============ ============
See accompanying notes to financial statements.
4
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998 (Unaudited)
================================================================================
OHIO FLORIDA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
- --------------------------------------------------------------------------------
ASSETS
Investment securities:
At acquisition cost ........................ $350,613,289 $ 90,876,969
============ ============
At amortized cost .......................... $350,470,265 $ 90,813,282
============ ============
At market value (Note 2) ................... $350,470,265 $ 90,813,282
Cash .......................................... -- 1,997,468
Interest receivable ........................... 2,770,495 552,775
Other assets .................................. 115,901 2,874
------------ ------------
TOTAL ASSETS ............................... 353,356,661 93,366,399
------------ ------------
LIABILITIES
Bank overdraft ................................ 1,785,351 --
Dividends payable ............................. 381,878 79,185
Payable for securities purchased .............. 801,864 --
Payable to affiliates (Note 4) ................ 178,499 32,357
Other accrued expenses and liabilities ........ 27,158 7,203
------------ ------------
TOTAL LIABILITIES .......................... 3,174,750 118,745
------------ ------------
NET ASSETS .................................... $350,181,911 $ 93,247,654
============ ============
Net assets consist of:
Paid-in capital ............................... $350,168,163 $ 93,261,817
Accumulated net realized gains (losses)
from security transactions ................. 13,748 (14,163)
------------ ------------
Net assets .................................... $350,181,911 $ 93,247,654
============ ============
PRICING OF RETAIL SHARES
Net assets applicable to Retail shares ........ $227,414,536 $ 25,379,987
============ ============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) (Note 5) ..................... 227,401,180 25,385,727
============ ============
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 . $122,767,375 $ 67,867,667
============ ============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) (Note 5) ..................... 122,766,983 67,876,090
============ ============
Net asset value, offering price and
redemption price per share (Note 2) ........ $ 1.00 $ 1.00
============ ============
See accompanying notes to financial statements.
5
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998 (Unaudited)
================================================================================
TAX-FREE OHIO INSURED
INTERMEDIATE TAX-FREE
TERM FUND FUND
- --------------------------------------------------------------------------------
ASSETS
Investment securities:
At acquisition cost ........................ $ 52,430,036 $ 66,372,136
============ ============
At amortized cost .......................... $ 52,161,440 $ 66,289,881
============ ============
At market value (Note 2) ................... $ 54,624,709 $ 71,090,521
Cash .......................................... 2,345 54,899
Interest receivable ........................... 918,167 664,285
Receivable for capital shares sold ............ 30,643 21,774
Other assets .................................. 33,991 36,173
------------ ------------
TOTAL ASSETS ............................... 55,609,855 71,867,652
------------ ------------
LIABILITIES
Dividends payable ............................. 38,999 81,733
Payable for capital shares redeemed ........... 381,001 24,675
Payable for securities purchased .............. 1,998,920 2,527,305
Payable to affiliates (Note 4) ................ 34,829 34,783
Other accrued expenses and liabilities ........ 13,294 9,498
------------ ------------
TOTAL LIABILITIES .......................... 2,467,043 2,677,994
------------ ------------
NET ASSETS .................................... $ 53,142,812 $ 69,189,658
============ ============
Net assets consist of:
Paid-in capital ............................... $ 51,239,618 $ 64,225,076
Accumulated net realized gains
(losses) from security transactions ........ (560,075) 163,942
Net unrealized appreciation on investments .... 2,463,269 4,800,640
------------ ------------
Net assets .................................... $ 53,142,812 $ 69,189,658
============ ============
PRICING OF CLASS A SHARES
Net assets applicable to Class A shares ....... $ 48,589,672 $ 64,201,470
============ ============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) (Note 5) ..................... 4,334,305 5,266,020
============ ============
Net asset value and redemption
price per share (Note 2) ................... $ 11.21 $ 12.19
============ ============
Maximum offering price per share (Note 2) ..... $ 11.44 $ 12.70
============ ============
PRICING OF CLASS C SHARES
Net assets applicable to Class C shares ....... $ 4,553,140 $ 4,988,188
============ ============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) (Note 5) ..................... 406,059 409,252
============ ============
Net asset value, offering price and
redemption price per share (Note 2) ........ $ 11.21 $ 12.19
============ ============
See accompanying notes to financial statements.
6
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1998 (Unaudited)
================================================================================
KENTUCKY
TAX-FREE
FUND
- --------------------------------------------------------------------------------
ASSETS
Investment securities:
At acquisition cost .......................................... $7,032,166
==========
At amortized cost ............................................ $6,989,045
==========
At market value (Note 2) ..................................... $7,137,650
Interest receivable ............................................. 138,167
Receivable from affiliates (Note 4) ............................. 3,080
Organization costs, net (Note 2) ................................ 11,110
Other assets .................................................... 4,458
----------
TOTAL ASSETS ................................................. 7,294,465
----------
LIABILITIES
Bank overdraft .................................................. 8,998
Dividends payable ............................................... 15,029
Other accrued expenses and liabilities .......................... 2,695
----------
TOTAL LIABILITIES ............................................ 26,722
----------
NET ASSETS ...................................................... $7,267,743
==========
Net assets consist of:
Paid-in capital ................................................. $7,119,118
Accumulated net realized gains from security transactions ....... 20
Net unrealized appreciation on investments ...................... 148,605
----------
Net assets ...................................................... $7,267,743
==========
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) (Note 5) ..... 705,302
==========
Net asset value and redemption price per share (Note 2) ......... $ 10.30
==========
Maximum offering price per share (Note 2) ....................... $ 10.73
==========
See accompanying notes to financial statements.
7
<PAGE>
STATEMENTS OF OPERATIONS
For the Six Months Ended December 31, 1998 (Unaudited)
================================================================================
CALIFORNIA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest income ............................. $ 563,998 $ 945,148
--------- ---------
EXPENSES
Investment advisory fees (Note 4) ........... 75,436 139,404
Accounting services fees (Note 4) ........... 15,000 17,500
Transfer agent fees (Note 4) ................ 15,460 14,921
Postage and supplies ........................ 11,526 4,024
Distribution expenses (Note 4) .............. 1,524 12,114
Registration fees ........................... 9,153 3,798
Professional fees ........................... 4,403 4,803
Trustees' fees and expenses ................. 3,829 3,829
Custodian fees .............................. 2,007 2,105
Reports to shareholders ..................... 2,168 1,431
Pricing expenses ............................ 1,395 1,837
Insurance expense ........................... 770 980
Other expenses .............................. 605 2,362
--------- ---------
TOTAL EXPENSES ................................. 143,276 209,108
Fees waived by the Adviser (Note 4) ......... (9,000) --
--------- ---------
NET EXPENSES ................................... 134,276 209,108
--------- ---------
NET INVESTMENT INCOME .......................... 429,722 736,040
--------- ---------
NET REALIZED GAINS (LOSSES)
FROM SECURITY TRANSACTIONS .................. 403 (4,493)
--------- ---------
NET INCREASE IN NET ASSETS FROM OPERATIONS ..... $ 430,125 $ 731,547
========= =========
See accompanying notes to financial statements.
8
<PAGE>
STATEMENTS OF OPERATIONS
For the Six Months Ended December 31, 1998 (Unaudited)
================================================================================
OHIO FLORIDA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest income ............................ $ 6,142,025 $ 1,202,450
----------- -----------
EXPENSES
Investment advisory fees (Note 4) .......... 757,817 171,198
Distribution expenses, Retail class (Note 4) 241,079 16,756
Accounting services fees (Note 4) .......... 36,424 24,000
Transfer agent fees, Retail class (Note 4) . 38,173 6,000
Transfer agent fees,
Institutional class (Note 4) ............ 6,000 6,000
Postage and supplies ....................... 32,482 4,325
Registration fees .......................... 22,439 6,795
Professional fees .......................... 13,103 5,603
Custodian fees (Note 4) .................... 9,055 8,830
Trustees' fees and expenses ................ 3,829 3,829
Pricing expenses ........................... 4,445 2,358
Insurance expense .......................... 4,540 1,320
Reports to shareholders .................... 4,588 294
Other expenses ............................. 5,706 1,190
----------- -----------
TOTAL EXPENSES ................................ 1,179,680 258,498
Fees waived by the Adviser (Note 4) ........ (51,659) (66,477)
----------- -----------
NET EXPENSES .................................. 1,128,021 192,021
----------- -----------
NET INVESTMENT INCOME ......................... 5,014,004 1,010,429
----------- -----------
NET REALIZED GAINS (LOSSES)
FROM SECURITY TRANSACTIONS ................. 224 (14,180)
----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS .... $ 5,014,228 $ 996,249
=========== ===========
See accompanying notes to financial statements.
9
<PAGE>
STATEMENTS OF OPERATIONS
For the Six Months Ended December 31, 1998 (Unaudited)
================================================================================
TAX-FREE OHIO INSURED
INTERMEDIATE TAX-FREE
TERM FUND FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest income ................................ $1,497,707 $1,997,040
---------- ----------
EXPENSES
Investment advisory fees (Note 4) .............. 140,374 182,724
Transfer agent fees, Class A (Note 4) .......... 28,373 17,609
Transfer agent fees, Class C (Note 4) .......... 6,000 6,000
Distribution expenses, Class A (Note 4) ........ 19,611 4,241
Distribution expenses, Class C (Note 4) ........ 13,389 13,870
Accounting services fees (Note 4) .............. 24,000 24,000
Postage and supplies ........................... 23,596 12,088
Registration fees, Common ...................... 1,722 1,599
Registration fees, Class A ..................... 4,922 2,172
Registration fees, Class C ..................... 3,995 1,149
Pricing expenses ............................... 6,633 7,530
Professional fees .............................. 5,603 6,053
Custodian fees ................................. 6,790 3,512
Reports to shareholders ........................ 5,020 3,213
Trustees' fees and expenses .................... 3,829 3,829
Insurance expense .............................. 1,320 1,530
Other expenses ................................. 1,024 2,177
---------- ----------
TOTAL EXPENSES .................................... 296,201 293,296
---------- ----------
NET INVESTMENT INCOME ............................. 1,201,506 1,703,744
---------- ----------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions .. 436,134 591,530
Net change in unrealized appreciation/
depreciation on investments ................. 25,055 119,477
---------- ----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS .. 461,189 711,007
---------- ----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ........ $1,662,695 $2,414,751
========== ==========
See accompanying notes to financial statements.
10
<PAGE>
STATEMENTS OF OPERATIONS
For the Six Months Ended December 31, 1998 (Unaudited)
================================================================================
KENTUCKY
TAX-FREE
FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest income .............................................. $ 187,021
---------
EXPENSES
Investment advisory fees (Note 4) ............................ 18,302
Accounting services fees (Note 4) ............................ 15,000
Transfer agent fees (Note 4) ................................. 6,000
Professional fees ............................................ 3,923
Trustees' fees and expenses .................................. 3,829
Amortization of organization costs (Note 2) .................. 3,178
Distribution expenses (Note 4) ............................... 3,016
Postage and supplies ......................................... 2,087
Pricing expenses ............................................. 1,889
Registration fees ............................................ 785
Custodian fees ............................................... 658
Reports to shareholders ...................................... 601
Insurance expense ............................................ 380
Other expenses ............................................... 513
---------
TOTAL EXPENSES .................................................. 60,161
Fees waived and expenses reimbursed by the Adviser (Note 4) .. (56,501)
---------
NET EXPENSES .................................................... 3,660
---------
NET INVESTMENT INCOME ........................................... 183,361
---------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions ................ 30,819
Net change in unrealized appreciation/
depreciation on investments ............................... 4,869
---------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ................ 35,688
---------
NET INCREASE IN NET ASSETS FROM OPERATIONS ...................... $ 219,049
=========
See accompanying notes to financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended December 31, 1998 and June 30, 1998
================================================================================================================================
CALIFORNIA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
------------------------------- -------------------------------
Six Months Six Months
Ended Year Ended Year
Dec. 31, Ended Dec. 31, Ended
1998 June 30, 1998 June 30,
(Unaudited) 1998 (Unaudited) 1998
- --------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ................................ $ 429,722 $ 899,491 $ 736,040 $ 1,219,772
Net realized gains (losses) from security transactions 403 7 (4,493) 2,000
------------- ------------- ------------- -------------
Net increase in net assets from operations .............. 430,125 899,498 731,547 1,221,772
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ........................... (429,722) (899,491) (736,040) (1,219,772)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE
TRANSACTIONS (Note 5):
Proceeds from shares sold ............................ 24,486,743 63,515,504 97,486,553 178,294,681
Net asset value of shares issued in
reinvestment of distributions to shareholders ..... 415,630 884,700 714,234 1,138,976
Payments for shares redeemed ......................... (32,852,941) (57,142,444) (89,557,330) (170,609,136)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
from capital share transactions ...................... (7,950,568) 7,257,760 8,643,457 8,824,521
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS ........................................ (7,950,165) 7,257,767 8,638,964 8,826,521
NET ASSETS:
Beginning of period .................................. 37,383,443 30,125,676 41,012,832 32,186,311
------------- ------------- ------------- -------------
End of period ........................................ $ 29,433,278 $ 37,383,443 $ 49,651,796 $ 41,012,832
============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended December 31, 1998 and June 30, 1998
================================================================================================================================
OHIO FLORIDA
TAX-FREE TAX-FREE
MONEY FUND MONEY FUND
------------------------------- -------------------------------
Six Months Six Months
Ended Year Ended Year
Dec. 31, Ended Dec. 31, Ended
1998 June 30, 1998 June 30,
(Unaudited) 1998 (Unaudited) 1998
- --------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ................................ $ 5,014,004 $ 9,960,231 $ 1,010,429 $ 1,736,533
Net realized gains (losses) from security transactions 224 573 (14,180) 23,116
------------- ------------- ------------- -------------
Net increase in net assets from operations .............. 5,014,228 9,960,804 996,249 1,759,649
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Retail ................... (3,039,790) (6,053,491) (229,123) (586,926)
From net investment income, Institutional ............ (1,974,214) (3,906,740) (781,306) (1,149,607)
From net relized gains, Retail ....................... -- -- (5,718) --
From net realized gains, Institutional ............... -- -- (16,553) --
------------- ------------- ------------- -------------
Decrease in net assets from distributions to
shareholders ......................................... (5,014,004) (9,960,231) (1,032,700) (1,736,533)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5):
RETAIL
Proceeds from shares sold ............................ 240,901,813 443,151,458 20,483,484 27,490,101
Net asset value of shares issued in
reinvestment of distributions to shareholders .... 3,034,325 5,971,760 230,208 577,444
Payments for shares redeemed ......................... (221,837,659) (410,526,902) (9,691,817) (36,138,595)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
from Retail share transactions ....................... 22,098,479 38,596,316 11,021,875 (8,071,050)
------------- ------------- ------------- -------------
INSTITUTIONAL
Proceeds from shares sold ............................ 240,091,302 303,525,174 49,432,490 129,691,125
Net asset value of shares issued in
reinvestment of distributions to shareholders .... 12,445 1,880 276,124 106,367
Payments for shares redeemed ......................... (232,603,050) (285,849,088) (30,973,080) (100,005,326)
------------- ------------- ------------- -------------
Net increase in net assets
from Institutional share transactions ................ 7,500,697 17,677,966 18,735,534 29,792,166
------------- ------------- ------------- -------------
TOTAL INCREASE IN NET ASSETS ............................ 29,599,400 56,274,855 29,720,958 21,744,232
NET ASSETS:
Beginning of period .................................. 320,582,511 264,307,656 63,526,696 41,782,464
------------- ------------- ------------- -------------
End of period ........................................ $ 350,181,911 $ 320,582,511 $ 93,247,654 $ 63,526,696
============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended December 31, 1998 and June 30, 1998
================================================================================================================================
TAX-FREE OHIO INSURED
INTERMEDIATE TAX-FREE
TERM FUND FUND
------------------------------- -------------------------------
Six Months Six Months
Ended Year Ended Year
Dec. 31, Ended Dec. 31, Ended
1998 June 30, 1998 June 30,
(Unaudited) 1998 (Unaudited) 1998
- --------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ................................ $ 1,201,506 $ 2,689,107 $ 1,703,744 $ 3,707,320
Net realized gains from security transactions ........ 436,134 504,427 591,530 1,576,938
Net change in unrealized appreciation/depreciation
on investments ................................... 25,055 120,496 119,477 (19,066)
------------- ------------- ------------- -------------
Net increase in net assets from operations .............. 1,662,695 3,314,030 2,414,751 5,265,192
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A .................. (1,113,656) (2,502,901) (1,602,118) (3,489,518)
From net investment income, Class C .................. (87,850) (186,206) (101,626) (217,802)
From net realized gains, Class A ..................... -- -- (1,554,508) (434,273)
From net realized gains, Class C ..................... -- -- (114,652) (34,811)
------------- ------------- ------------- -------------
Decrease in net assets from distributions to
shareholders ......................................... (1,201,506) (2,689,107) (3,372,904) (4,176,404)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE
TRANSACTIONS (Note 5):
CLASS A
Proceeds from shares sold ............................ 5,960,147 12,407,637 73,437,271 140,842,715
Net asset value of shares issued in
reinvestment of distributions to shareholders .... 899,725 2,009,499 2,443,768 2,921,236
Payments for shares redeemed ......................... (11,589,919) (20,581,067) (80,082,522) (146,316,005)
------------- ------------- ------------- -------------
Net decrease in net assets
from Class A share transactions ...................... (4,730,047) (6,163,931) (4,201,483) (2,552,054)
------------- ------------- ------------- -------------
CLASS C
Proceeds from shares sold ............................ 991,332 1,781,236 240,842 2,551,977
Net asset value of shares issued in
reinvestment of distributions to shareholders .... 84,299 173,075 187,773 209,923
Payments for shares redeemed ......................... (1,306,948) (2,418,483) (583,165) (2,249,977)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
from Class C share transactions ...................... (231,317) (464,172) (154,550) 511,923
------------- ------------- ------------- -------------
TOTAL DECREASE IN NET ASSETS ............................ (4,500,175) (6,003,180) (5,314,186) (951,343)
NET ASSETS:
Beginning of period .................................. 57,642,987 63,646,167 74,503,844 75,455,187
------------- ------------- ------------- -------------
End of period ........................................ $ 53,142,812 $ 57,642,987 $ 69,189,658 $ 74,503,844
============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS For the Periods Ended December 31, 1998,
June 30, 1998 and August 31, 1997
===========================================================================================================
Kentucky Tax-Free Fund
----------------------------------------------
Six Months
Ended Ten Months Year
Dec. 31, Ended Ended
1998 June 30, August 31,
(Unaudited) 1998(A) 1997
- -----------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C> <C>
Net investment income ................................ $ 183,361 $ 306,351 $ 524,683
Net realized gains from security transactions ........ 30,819 109,080 6,913
Net change in unrealized appreciation/depreciation
on investments ................................... 4,869 51,636 351,842
------------ ------------ ------------
Net increase in net assets from operations .............. 219,049 467,067 883,438
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ........................... (183,361) (306,351) (524,683)
Distributions in excess of net investment income ..... (144,004) -- (100,598)
------------ ------------ ------------
Decrease in net assets from distributions to shareholders (327,365) (306,351) (625,281)
------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5):
Proceeds from shares sold ............................ 485,491 458,492 1,302,552
Net asset value of shares issued in
reinvestment of distributions to shareholders .... 211,309 157,294 303,297
Payments for shares redeemed ......................... (650,571) (1,884,304) (9,266,863)
------------ ------------ ------------
Net increase (decrease) in net assets
from capital share transactions ...................... 46,229 (1,268,518) (7,661,014)
------------ ------------ ------------
TOTAL DECREASE IN NET ASSETS ............................ (62,087) (1,107,802) (7,402,857)
NET ASSETS:
Beginning of period .................................. 7,329,830 8,437,632 15,840,489
------------ ------------ ------------
End of period ........................................ $ 7,267,743 $ 7,329,830 $ 8,437,632
============ ============ ============
</TABLE>
(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).
See accompanying notes to financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
TAX-FREE MONEY FUND
FINANCIAL HIGHLIGHTS
===================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
Dec. 31, Year Ended June 30,
1998 ------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- --------
Net investment income .............................. 0.014 0.030 0.029 0.031 0.030 0.021
-------- -------- -------- -------- -------- --------
Dividends from net investment income ............... (0.014) (0.030) (0.029) (0.031) (0.030) (0.021)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total return ....................................... 2.87%(B) 3.03% 2.89% 3.15% 3.07% 2.12%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ................ $ 29,433 $ 37,383 $ 30,126 $ 25,342 $ 26,692 $ 31,168
======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets(A) ......... 0.89%(B) 0.92% 0.99% 0.99% 0.99% 0.99%
Ratio of net investment income to average net assets 2.85%(B) 2.98% 2.85% 3.09% 3.00% 2.09%
</TABLE>
(A) Absent fee waivers by the Adviser, the ratio of expenses to average net
assets would have been 0.95%(B) for the period ended December 31, 1998
(Note 4).
(B) Annualized.
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY FUND
FINANCIAL HIGHLIGHTS
===================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
Dec. 31, Year Ended June 30,
1998 ------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- --------
Net investment income .............................. 0.013 0.029 0.028 0.029 0.029 0.019
-------- -------- -------- -------- -------- --------
Dividends from net investment income ............... (0.013) (0.029) (0.028) (0.029) (0.029) (0.019)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total return ....................................... 2.67%(B) 2.94% 2.81% 2.95% 2.95% 1.93%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ................ $ 49,652 $ 41,013 $ 32,186 $ 36,122 $ 19,525 $ 24,508
======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets(A) ......... 0.75%(B) 0.77% 0.80% 0.80% 0.70% 0.60%
Ratio of net investment income to average net assets 2.64%(B) 2.89% 2.76% 2.88% 2.83% 1.90%
</TABLE>
(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.
(B) Annualized.
See accompanying notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
OHIO TAX-FREE MONEY FUND - RETAIL
FINANCIAL HIGHLIGHTS
===================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
Dec. 31, Year Ended June 30,
1998 ------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- --------
Net investment income .............................. 0.014 0.030 0.030 0.031 0.031 0.020
-------- -------- -------- -------- -------- --------
Dividends from net investment income ............... (0.014) (0.030) (0.030) (0.031) (0.031) (0.020)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total return ....................................... 2.84%(B) 3.07% 2.99% 3.14% 3.12% 1.99%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ................ $227,415 $205,316 $166,719 $240,323 $226,606 $213,001
======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets(A) ......... 0.75%(B) 0.75% 0.75% 0.75% 0.74% 0.73%
Ratio of net investment income to average net assets 2.83%(B) 3.02% 2.93% 3.09% 3.08% 1.97%
</TABLE>
(A) Absent fee waivers and/or expense reimbursements by the Adviser, the ratio
of expenses to average net assets would have been 0.78%(B), 0.76% and 0.77%
for the periods ended December 31, 1998 and June 30, 1998 and 1997,
respectively (Note 4).
(B) Annualized.
<TABLE>
<CAPTION>
OHIO TAX-FREE MONEY FUND - INSTITUTIONAL
FINANCIAL HIGHLIGHTS
============================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
- --------------------------------------------------------------------------------------------
Six Months
Ended Year Period
Dec. 31, Ended Ended
1998 June 30, June 30,
(Unaudited) 1998 1997(A)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period ............. $ 1.000 $ 1.000 $ 1.000
-------- -------- --------
Net investment income .............................. 0.016 0.033 0.016
-------- -------- --------
Dividends from net investment income ............... (0.016) (0.033) (0.016)
-------- -------- --------
Net asset value at end of period ................... $ 1.000 $ 1.000 $ 1.000
======== ======== ========
Total return ....................................... 3.10%(C) 3.33% 3.31%(C)
======== ======== ========
Net assets at end of period (000's) ................ $122,767 $115,266 $ 97,589
======== ======== ========
Ratio of expenses to average net assets(B) ......... 0.50%(C) 0.50% 0.50%(C)
Ratio of net investment income to average net assets 3.07%(C) 3.27% 3.28%(C)
</TABLE>
(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 0.53%(C), 0.52% and
0.56%(C) for the periods ended December 31, 1998 and June 30, 1998 and
1997, respectively (Note 4).
(C) Annualized.
See accompanying notes to financial statements.
17
<PAGE>
<TABLE>
<CAPTION>
FLORIDA TAX-FREE MONEY FUND - RETAIL
FINANCIAL HIGHLIGHTS
===================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
Dec. 31, Year Ended June 30,
1998 ------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- --------
Net investment income .............................. 0.014 0.030 0.029 0.032 0.031 0.021
-------- -------- -------- -------- -------- --------
Dividends from net investment income ............... (0.014) (0.030) (0.029) (0.032) (0.031) (0.021)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total return ....................................... 2.78%(B) 3.03% 2.90% 3.29% 3.17% 2.11%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ................ $ 25,380 $ 14,368 $ 22,434 $ 28,906 $ 24,119 $ 26,276
======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets(A) ......... 0.75%(B) 0.75% 0.75% 0.61% 0.66% 0.58%
Ratio of net investment income to average net assets 2.75%(B) 2.98% 2.85% 3.24% 3.12% 2.10%
</TABLE>
(A) Absent fee waivers and/or expense reimbursements by the Adviser, the ratio
of expenses to average net assets would have been 0.94%(B), 0.95%, 0.94%,
0.80%, 0.80% and 0.81% for the periods ended December 31, 1998 and June 30,
1998, 1997, 1996, 1995 and 1994, respectively (Note 4).
(B) Annualized.
<TABLE>
<CAPTION>
FLORIDA TAX-FREE MONEY FUND - INSTITUTIONAL
FINANCIAL HIGHLIGHTS
=========================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
- ---------------------------------------------------------------------------------------------------------
Six Months
Ended Period
Dec. 31, Year Ended June 30, Ended
1998 --------------------- June 30,
(Unaudited) 1998 1997 1996(A)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- --------
Net investment income .............................. 0.015 0.032 0.031 0.003
-------- -------- -------- --------
Dividends from net investment income ............... (0.015) (0.032) (0.031) (0.003)
-------- -------- -------- --------
Net asset value at end of period ................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ========
Total return ....................................... 3.04%(C) 3.28% 3.16% 3.03%(C)
======== ======== ======== ========
Net assets at end of period (000's) ................ $ 67,868 $ 49,159 $ 19,349 $ 19,145
======== ======== ======== ========
Ratio of expenses to average net assets(B) ......... 0.50%(C) 0.50% 0.50% 0.50%(C)
Ratio of net investment income to average net assets 3.01%(C) 3.23% 3.11% 3.03%(C)
</TABLE>
(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 0.69%(C), 0.71%, 0.79%
and 0.87%(C) for the periods ended December 31, 1998 and June 30, 1998,
1997 and 1996, respectively (Note 4).
(C) Annualized.
See accompanying notes to financial statements.
18
<PAGE>
<TABLE>
<CAPTION>
TAX-FREE INTERMEDIATE TERM FUND - CLASS A
FINANCIAL HIGHLIGHTS
===================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
Dec. 31, Year Ended June 30,
1998 ------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 11.12 $ 11.01 $ 10.85 $ 10.86 $ 10.69 $ 10.98
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income ........................... 0.24 0.50 0.50 0.50 0.49 0.48
Net realized and unrealized gains (losses)
on investments .............................. 0.09 0.11 0.16 (0.01) 0.17 (0.29)
-------- -------- -------- -------- -------- --------
Total from investment operations ................... 0.33 0.61 0.66 0.49 0.66 0.19
-------- -------- -------- -------- -------- --------
Dividends from net investment income ............... (0.24) (0.50) (0.50) (0.50) (0.49) (0.48)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ................... $ 11.21 $ 11.12 $ 11.01 $ 10.85 $ 10.86 $ 10.69
======== ======== ======== ======== ======== ========
Total return(A) .................................... 6.02%(B) 5.63% 6.19% 4.51% 6.36% 1.70%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ................ $ 48,590 $ 52,896 $ 58,485 $ 67,675 $ 81,140 $106,472
======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets ............ 0.99%(B) 0.99% 0.99% 0.99% 0.99% 0.99%
Ratio of net investment income to
average net assets .............................. 4.35%(B) 4.50% 4.55% 4.52% 4.59% 4.35%
Portfolio turnover rate ............................ 67%(B) 36% 30% 37% 32% 46%
</TABLE>
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Annualized.
See accompanying notes to financial statements.
19
<PAGE>
<TABLE>
<CAPTION>
TAX-FREE INTERMEDIATE TERM FUND - CLASS C
FINANCIAL HIGHLIGHTS
============================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
- ----------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Period
Dec. 31, Year Ended June 30, Ended
1998 ----------------------------------------------- June 30,
(Unaudited) 1998 1997 1996 1995 1994(A)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ...... $ 11.12 $ 11.01 $ 10.85 $ 10.86 $ 10.69 $ 11.27
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income .................... 0.20 0.42 0.43 0.44 0.44 0.20
Net realized and unrealized gains (losses)
on investments ....................... 0.09 0.11 0.16 (0.01) 0.17 (0.58)
-------- -------- -------- -------- -------- --------
Total from investment operations ............ 0.29 0.53 0.59 0.43 0.61 (0.38)
-------- -------- -------- -------- -------- --------
Dividends from net investment income ........ (0.20) (0.42) (0.43) (0.44) (0.44) (0.20)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ............ $ 11.21 $ 11.12 $ 11.01 $ 10.85 $ 10.86 $ 10.69
======== ======== ======== ======== ======== ========
Total return(B) ............................. 5.25%(D) 4.85% 5.49% 4.00% 5.82% (8.28%)(D)
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ......... $ 4,553 $ 4,747 $ 5,161 $ 5,239 $ 4,814 $ 3,084
======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets(C) .. 1.74%(D) 1.74% 1.65% 1.49% 1.49% 1.45%(D)
Ratio of net investment income to
average net assets ....................... 3.59%(D) 3.75% 3.89% 4.02% 4.08% 3.79%(D)
Portfolio turnover rate ..................... 67%(D) 36% 30% 37% 32% 46%(D)
</TABLE>
(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.
20
<PAGE>
<TABLE>
<CAPTION>
OHIO INSURED TAX-FREE FUND - CLASS A
FINANCIAL HIGHLIGHTS
===================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
Dec. 31, Year Ended June 30,
1998 ------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 12.37 $ 12.22 $ 11.97 $ 11.99 $ 11.74 $ 12.41
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income ........................... 0.29 0.61 0.61 0.62 0.63 0.61
Net realized and unrealized gains (losses)
on investments .............................. 0.11 0.23 0.25 (0.02) 0.25 (0.64)
-------- -------- -------- -------- -------- --------
Total from investment operations ................... 0.40 0.84 0.86 0.60 0.88 (0.03)
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ............ (0.29) (0.61) (0.61) (0.62) (0.63) (0.61)
Distributions from net realized gains ........... (0.29) (0.08) -- -- -- (0.03)
-------- -------- -------- -------- -------- --------
Total distributions ................................ (0.58) (0.69) (0.61) (0.62) (0.63) (0.64)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ................... $ 12.19 $ 12.37 $ 12.22 $ 11.97 $ 11.99 $ 11.74
======== ======== ======== ======== ======== ========
Total return(A) .................................... 6.47%(C) 7.03% 7.36% 5.05% 7.75% (0.41%)
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ................ $ 64,201 $ 69,289 $ 70,816 $ 75,938 $ 71,393 $ 79,889
======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets(B) ......... 0.75%(C) 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment income to
average net assets .............................. 4.72%(C) 4.95% 5.05% 5.12% 5.35% 4.94%
Portfolio turnover rate ............................ 29%(C) 41% 33% 46% 29% 45%
</TABLE>
(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.
(C) Annualized.
See accompanying notes to financial statements.
21
<PAGE>
<TABLE>
<CAPTION>
OHIO INSURED TAX-FREE FUND - CLASS C
FINANCIAL HIGHLIGHTS
============================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
- ----------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Period
Dec. 31, Year Ended June 30, Ended
1998 ----------------------------------------------- June 30,
(Unaudited) 1998 1997 1996 1995 1994(A)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ....... $ 12.37 $ 12.22 $ 11.97 $ 12.00 $ 11.74 $ 12.62
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income ..................... 0.25 0.52 0.53 0.56 0.57 0.36
Net realized and unrealized gains (losses)
on investments ........................ 0.11 0.23 0.25 (0.03) 0.26 (0.85)
-------- -------- -------- -------- -------- --------
Total from investment operations ............. 0.36 0.75 0.78 0.53 0.83 (0.49)
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ...... (0.25) (0.52) (0.53) (0.56) (0.57) (0.36)
Distributions from net realized gains ..... (0.29) (0.08) -- -- -- (0.03)
-------- -------- -------- -------- -------- --------
Total distributions .......................... (0.54) (0.60) (0.53) (0.56) (0.57) (0.39)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ............. $ 12.19 $ 12.37 $ 12.22 $ 11.97 $ 12.00 $ 11.74
======== ======== ======== ======== ======== ========
Total return(B) .............................. 5.70%(D) 6.24% 6.65% 4.44% 7.31% (6.05%)(D)
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) .......... $ 4,988 $ 5,215 $ 4,639 $ 3,972 $ 4,165 $ 2,659
======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets(C) ... 1.50%(D) 1.50% 1.42% 1.25% 1.25% 1.22%(D)
Ratio of net investment income to
average net assets ........................ 3.97%(D) 4.20% 4.37% 4.62% 4.84% 4.09%(D)
Portfolio turnover rate ...................... 29%(D) 41% 33% 46% 29% 45%(D)
</TABLE>
(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.
22
<PAGE>
<TABLE>
<CAPTION>
KENTUCKY TAX-FREE FUND
FINANCIAL HIGHLIGHTS
============================================================================================================
Per Share Data For a Share Outstanding Throughout Each Period
- ------------------------------------------------------------------------------------------------------------
Six Months
Ended Ten Months Year Period
Dec. 31, Ended Ended Ended
1998 June 30, August 31, August 31,
(Unaudited) 1998(A) 1997 1996(B)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 10.46 $ 10.26 $ 10.06 $ 10.00
-------- -------- -------- --------
Income from investment operations:
Net investment income ........................... 0.26 0.41 0.44 0.51(C)
Net realized and unrealized gains on investments 0.05 0.20 0.28 0.06
-------- -------- -------- --------
Total from investment operations ................... 0.31 0.61 0.72 0.57
-------- -------- -------- --------
Less distributions:
Dividends from net investment income ............ (0.26) (0.41) (0.44) (0.51)
Distributions from net realized gains ........... (0.21) -- -- --
Distributions in excess of net investment income -- -- (0.08) --
-------- -------- -------- --------
Total distributions ................................ (0.47) (0.41) (0.52) (0.51)
-------- -------- -------- --------
Net asset value at end of period ................... $ 10.30 $ 10.46 $ 10.26 $ 10.06
======== ======== ======== ========
Total return(D) .................................... 5.99%(F) 7.29%(F) 7.36% 5.80%
======== ======== ======== ========
Net assets at end of period (000's) ................ $ 7,268 $ 7,330 $ 8,438 $ 15,840
======== ======== ======== ========
Ratio of expenses to average net assets(E) ......... 0.10%(F) 0.49%(F) 0.85% 0.82%(F)
Ratio of net investment income to average net assets 5.01%(F) 4.75%(F) 4.35% 5.30%(F)
Portfolio turnover rate ............................ 27%(F) 61%(F) 0% 145%
</TABLE>
(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 1.64%(F), 1.55%(F), 1.78% and 1.65%(F)
for the periods ended December 31, 1998, June 30, 1998 and August 31, 1997
and 1996, respectively (Note 4).
(F) Annualized.
See accompanying notes to financial statements.
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 (Unaudited)
================================================================================
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.
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
2. SIGNIFICANT ACCOUNTING POLICIES
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.
25
<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 December 31, 1998:
- --------------------------------------------------------------------------------
Tax-Free Ohio Insured Kentucky
Intermediate Tax-Free Tax-Free
Term Fund Fund Fund
- --------------------------------------------------------------------------------
Gross unrealized appreciation .... $ 2,488,793 $ 4,824,389 $ 152,581
Gross unrealized depreciation .... (25,524) (23,749) (3,976)
----------- ----------- ---------
Net unrealized appreciation ...... $ 2,463,269 $ 4,800,640 $ 148,605
=========== =========== =========
- --------------------------------------------------------------------------------
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 the
current and 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 six months ended December 31, 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 ........................ $18,199,651 $10,206,712 $ 912,039
=========== =========== ===========
Proceeds from sales and maturities of investment securities $21,073,934 $11,560,770 $ 1,207,599
=========== =========== ===========
- --------------------------------------------------------------------------------------------------------
</TABLE>
4. TRANSACTIONS WITH AFFILIATES
The officers 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.
26
<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 six months ended
December 31, 1998, the Adviser waived investment advisory fees of $9,000 for the
Tax-Free Money Fund, $51,659 for the Ohio Tax-Free Money Fund, $66,477 for the
Florida Tax-Free Money Fund and $18,302 for the Kentucky Tax-Free Fund. In
addition, the Adviser reimbursed $38,199 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 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 and the Kentucky Tax-Free Fund, $3,000 per month from the California
Tax-Free Money 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 $1,983, $6,684
and $1,824 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 six months ended December 31, 1998. In
addition, the Adviser collected $8,582 and $1,318 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.
27
<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 December 31, 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 December 31, 1998. Under the terms of its Custodian
Agreement, Huntington receives from the Fund an asset-based fee.
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
-------------------------- --------------------------
Six Months Six Months
Ended Year Ended Year
Dec. 31, Ended Dec. 31, Ended
1998 June 30, 1998 June 30,
(Unaudited) 1998 (Unaudited) 1998
- ------------------------------------------------------------------------------------------------------------
CLASS A
<S> <C> <C> <C> <C>
Shares sold ................................. 533,012 1,116,388 5,936,170 11,401,093
Shares issued in reinvestment of
distributions to shareholders ....... 80,306 180,589 199,017 236,258
Shares redeemed ............................. (1,036,514) (1,853,155) (6,469,112) (11,832,144)
---------- ---------- ---------- -----------
Net decrease in shares outstanding .......... (423,196) (556,178) (333,925) (194,793)
Shares outstanding, beginning of period ..... 4,757,501 5,313,679 5,599,945 5,794,738
---------- ---------- ---------- -----------
Shares outstanding, end of period ........... 4,334,305 4,757,501 5,266,020 5,599,945
========== ========== ========== ===========
CLASS C
Shares sold ................................. 88,453 160,180 19,489 206,187
Shares issued in reinvestment of
distributions to shareholders ....... 7,522 15,574 15,295 16,990
Shares redeemed ............................. (116,736) (217,791) (47,084) (181,289)
---------- ---------- ---------- -----------
Net increase (decrease) in shares outstanding (20,761) (42,037) (12,300) 41,888
Shares outstanding, beginning of period ..... 426,820 468,857 421,552 379,664
---------- ---------- ---------- -----------
Shares outstanding, end of period ........... 406,059 426,820 409,252 421,552
========== ========== ========== ===========
- ------------------------------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Kentucky Tax-Free Fund
----------------------------------------
Six Months
Ended Ten Months Year
Dec. 31, Ended Ended
1998 June 30, Aug. 31,
(Unaudited) 1998 1997
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares sold ................................. 46,788 43,967 127,642
Shares issued in reinvestment of
distributions to shareholders ....... 20,435 15,102 29,744
Shares redeemed ............................. (62,428) (181,304) (909,256)
-------- -------- ---------
Net increase (decrease) in shares outstanding 4,795 (122,235) (751,870)
Shares outstanding, beginning of period ..... 700,507 822,742 1,574,612
-------- -------- ---------
Shares outstanding, end of period ........... 705,302 700,507 822,742
======== ======== =========
- --------------------------------------------------------------------------------------------
</TABLE>
6. PORTFOLIO COMPOSITION
As of December 31, 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 exclusively 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
December 31, 1998, 12.1% of the portfolio securities of the Tax-Free Money Fund
were concentrated in the State of Ohio and 10.5% 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 California Tax-Free Money Fund, the Ohio Tax-Free Money Fund, the Florida
Tax-Free Money Fund, 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 December
31, 1998, the Kentucky Tax-Free Fund had concentrations of investments (10% or
greater) in two issuers which collectively totaled 22.8%. 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 December 31, 1998, 46.4% 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], 18.9%
were rated AA/Aa, 31.1% were rated A/A and 3.6% were not rated. For the Kentucky
Tax-Free Fund's portfolio securities, 46.7% were rated AAA/Aaa, 15.6% were rated
AA/Aa, 12.4% were rated A/A, 22.5% were rated BBB/Baa and 2.8% were not rated.
As of December 31, 1998, 91.6% 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 66.1%
of its portfolio securities.
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
The concentration of investments for each Fund as of December 31, 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 ....................... 17.9% 10.0% 23.6% 7.4% 15.7% 41.2% 4.3%
Revenue Bonds:
Industrial Development/Pollution Control 33.0% 25.2% 21.7% 20.0% 6.2% 4.6% 6.6%
Hospital/Health Care ................... 7.9% 11.9% 26.0% 24.8% 18.1% 21.6% 11.3%
Housing/Mortgage ....................... 9.3% 12.3% 4.4% 10.6% 12.3% 4.6% 7.5%
Utilities .............................. 11.0% 16.0% 9.6% 15.0% 8.5% 16.1% 8.0%
Education .............................. 7.6% 7.2% 4.4% 10.9% 19.2% 2.5% 20.4%
Transportation ......................... 3.5% 8.2% -- 0.6% 4.8% 2.9% 15.7%
Public Facilities ...................... 4.3% 5.3% 4.0% 0.6% 5.6% 1.7% 9.2%
Economic Development ................... 3.8% 0.5% 4.7% 0.6% 2.7% -- 11.2%
Leases ................................. -- 2.6% -- 1.5% 3.0% -- 5.8%
Special Tax ............................ 0.9% 0.8% 0.3% 1.0% 2.0% 2.8% --
Miscellaneous .......................... 0.8% -- 1.3% 7.0% 1.9% 2.0% --
----- ----- ----- ----- ----- ----- -----
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 qualified 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,
was changed from August 31 to June 30.
30
<PAGE>
<TABLE>
<CAPTION>
TAX-FREE MONEY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998 (Unaudited)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Fixed Rate Revenue & General Obligation Bonds-- 33.8% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 500,000 Chesterfield Co., VA, GO, Ser. B ......................................... 6.200% 01/01/99 $ 500,000
500,000 Chicago, IL, Public Library, Ser. C ...................................... 6.100 01/01/99 500,000
345,000 Maricopa CO., AZ, School Dist. Rev ....................................... 3.900 01/01/99 345,000
250,000 North Carolina Muni. Power Catawba Rev ................................... 5.100 01/01/99 250,000
500,000 Texas Turnpike Auth. Rev. (Dallas N. Tollway), Prerefunded @ 102 ......... 7.250 01/01/99 512,917
265,000 Bloomfield, IN, School Dist. Rev ......................................... 3.700 01/05/99 265,000
480,000 Munster, IN, School Bldg. Rev ............................................ 3.600 01/05/99 480,000
600,000 Massillon, OH, GO ........................................................ 4.550 01/15/99 600,144
641,600 American Municipal Power Sys. Impt. BANS (Village of Milan Proj.) ........ 3.950 01/22/99 641,600
435,000 Collin Co., TX, Comm. College Dist. Rev .................................. 4.500 02/01/99 435,267
200,000 College Station, TX, GO .................................................. 7.000 02/15/99 200,804
230,000 Angleton, TX, COP, Ser. A ................................................ 3.800 02/15/99 230,000
459,000 St. Mary's, OH, CSD GO BANS .............................................. 4.000 02/23/99 459,089
220,000 Carson City, NV, Hosp. GO ................................................ 8.000 03/01/99 221,660
250,000 Montgomery Co., TX, Municipal Utility Dist. No. 6 GO ..................... 3.850 03/01/99 250,018
130,000 Breckingridge, MI, Comm. School GO ....................................... 4.500 05/01/99 130,545
150,000 Chester CO., TN, GO ...................................................... 5.250 05/01/99 150,925
100,000 Oxford, MI, Area Comm. School GO ......................................... 4.100 05/01/99 100,160
115,000 Wilson Co., TN, GO, Ser. 1998 ............................................ 4.500 05/01/99 115,312
255,000 Wisconsin St., Health & Education Fac. Rev ............................... 3.700 06/01/99 255,000
315,000 Washoe Co., NV, GO, Prerefunded @ 102 .................................... 7.375 07/01/99 326,246
340,000 West Virginia St. Bldg. Comm. Lease Rev. (WV Regional Jail) .............. 3.600 07/01/99 340,488
250,000 Jefferson, LA, Sales Tax Dist. Rev., Prerefunded @ 100 ................... 8.250 07/01/99 255,511
400,000 American Municipal Power Sys. Impt. BANS, (Montpilier Village Proj.) ..... 3.550 07/15/99 400,000
485,000 Arlington, TX, Perm. Impt. GO ............................................ 4.500 08/15/99 486,748
250,000 Charlotte, NC, COP, Ser. C (Govt. Equipment Proj.) ....................... 5.050 09/01/99 252,813
500,000 Rhode Island St., GO, Ser. B, Prerefunded @ 102 .......................... 6.800 10/15/99 520,963
170,000 Commerce Charter Twnp., MI, Special Assessment GO, Ser. B ................ 3.700 11/01/99 170,481
560,000 American Municipal Power Sys. Impt. BANS, (Wellington Village Proj.) ..... 3.500 12/16/99 560,000
- ----------- ------------
$ 9,895,600 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- ----------- (Amortized Cost $9,956,691) .............................................. $ 9,956,691
------------
===============================================================================================================================
Principal Coupon Maturity Market
Amount Floating & Variable Rate Demand Notes-- 43.6% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 1,700,000 Northern CA, Pwr. Agy. Rev., Ser. 1998 (Hydro Elec. Proj.) ............... 5.350% 01/01/99 $ 1,700,000
330,000 Coppell, TX, IDR (Minyards Prop., Inc.) .................................. 3.050 01/01/99 330,000
500,000 Arapahoe Co., CO, Rev., Ser. 1997 (Denver Jet Ctr. Proj.) ................ 3.400 01/01/99 500,000
200,000 Hope, AR, IDR, Ser. A (Champion Parts, Inc.) ............................. 4.300 01/07/99 200,000
675,000 Brooklyn Park, MN, IDR (Schmidt Proj.) ................................... 4.300 01/07/99 675,000
290,000 Frankfort, MN, IDR, Ser. 1998 (J&B, Inc.) ................................ 4.500 01/07/99 290,000
973,000 Kansas City, MO, IDR, Rev. (A.M. Castle & Co.) ........................... 4.450 01/07/99 973,000
500,000 Frankfort, MN, IDR, Ser. 1998 (J&B, Inc.) ................................ 4.300 01/07/99 500,000
900,000 Eddyville, IA, IDR (Heartland Lysine, Inc.) .............................. 4.500 01/07/99 900,000
649,070 Franklin Park, IL, Rev. (A.M. Castle & Co.) .............................. 4.450 01/07/99 649,070
187,500 Rosemont, IL, IDR (A.M. Castle & Co.) .................................... 4.450 01/07/99 187,500
1,100,000 Scio Twnp., MI, EDR ...................................................... 3.950 01/07/99 1,100,000
1,315,000 Mankato, MN, IDR, Ser. 1998 (Sacco Family Proj.) ......................... 4.400 01/07/99 1,315,000
31
<PAGE>
TAX-FREE MONEY FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Floating & Variable Rate Demand Notes-- 43.6% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 1,515,000 Harvard, IL, Health Care Fac. Rev., Ser. 1998 ............................ 4.250% 01/07/99 $ 1,515,000
1,000,000 Los Angeles, CA, Multi-Family Rev. (Oakwood Apts.) ....................... 5.250 01/07/99 1,000,000
1,000,000 Dist. Of Columbia, MFH, Tyler House Trust COP, Ser. 1995A ................ 4.300 01/07/99 1,000,000
- ----------- ------------
$12,834,570 TOTAL FLOATING & VARIABLE RATE DEMAND NOTES
- ----------- (Amortized Cost $12,834,570) ............................................. $ 12,834,570
------------
===============================================================================================================================
Principal Coupon Maturity Market
Amount Adjustable Rate Put Bonds-- 20.3% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 650,000 Cuyahoga Co., OH, IDR (Halle Office Bldg.) ............................... 4.000% 01/01/99 $ 650,000
680,000 Colorado Health Fac. Auth. Rev., Ser. 1998A .............................. 4.050 02/01/99 678,481
580,000 Citizens Federal Tax-Exempt Mtg. Bond Trust .............................. 3.750 02/01/99 580,000
1,200,000 Lansing, MI, EDR (LGH Office Bldg. Proj.) ................................ 3.600 03/01/99 1,200,000
750,000 Medina Co., OH, IDR (Nationwide One Proj.) ............................... 5.100 03/01/99 751,594
145,000 Owensboro, KY, IDR, Ser. 1985 (Dart Container) ........................... 3.800 04/01/99 145,000
450,000 Wheat Ridge, CO, IDR, Ser. 1984 (Pearse Electronics Proj.) ............... 4.180 06/01/99 450,000
1,000,000 Santa Clara Co., CA, Hsg. Auth. Rev. (Orchard Glen Apartments) ........... 3.360 06/01/99 1,000,000
500,000 Brooklyn Park, MN, IDR (Schmidt Proj.) ................................... 3.700 01/15/00 500,000
- ----------- ------------
$ 5,955,000 TOTAL ADJUSTABLE RATE PUT BONDS
- ----------- (Amortized Cost $5,955,075) .............................................. $ 5,955,075
------------
$28,685,170 TOTAL INVESTMENTS AT VALUE-- 97.7%
=========== (Amortized Cost $28,746,336) ............................................. $ 28,746,336
OTHER ASSETS IN EXCESS OF LIABILITIES-- 2.3% ............................. 686,942
------------
NET ASSETS-- 100.0% ...................................................... $ 29,433,278
============
See accompanying notes to financial statements and notes to portfolios of
investments.
32
<PAGE>
CALIFORNIA TAX-FREE MONEY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998 (Unaudited)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Fixed Rate Revenue & General Obligation Bonds -- 29.9% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 450,000 Antelope Valley CA, Hosp. Dist. Rev ......................................
(Antelope Valley Hosp.), Prerefunded @ 100 ............................... 7.250% 01/01/99 $ 450,000
205,000 San Ramon, CA, Public Fin. Rev ........................................... 3.600 02/01/99 205,000
500,000 Los Angeles, CA, Wastewater Sys. Rev., Ser. A, Prerefunded @ 102 ......... 7.000 02/01/99 511,418
330,000 Los Angeles, CA, Wastewater Sys. Rev., Ser. A, Prerefunded @ 102 ......... 7.100 02/01/99 337,482
270,000 Big Bear Lake, CA, COP (Big Bear Lake Impt. Agcy.) ....................... 6.000 02/01/99 270,465
285,000 Madera Co., CA, COP (Valley Children's Hosp.) ............................ 3.600 03/15/99 285,000
479,000 University of California, Regents COP, Ser. A ............................ 3.200 04/01/99 477,803
200,000 California Fin. Auth. Solid Waste Disposal Rev.,
Ser. 1998C (City Fibers, Inc.) ........................................... 4.000 04/01/99 200,000
250,000 San Diego Co., CA, Reg. Trans. Comm. Sales Tax Rev., Ser. A .............. 5.000 04/01/99 250,777
500,000 San Francisco, CA, City & Co. Int'l Airport. Rev ......................... 6.100 05/01/99 505,070
125,000 Santa Cruz, CA, COP Parking Rev .......................................... 3.500 05/01/99 125,200
100,000 San Diego, CA, Sewer Rev., Ser. A ........................................ 4.000 05/15/99 100,053
200,000 Selma, CA, GO ............................................................ 3.250 06/01/99 200,000
215,000 Alameda Co., CA, COP Capital Proj ........................................ 4.000 06/01/99 215,518
100,000 California St. Dept. of Water Resource Center Rev., Ser. G (Valley Proj.) 7.125 06/01/99 102,987
1,200,000 California St. GO, Ser. BJ ............................................... 4.125 06/01/99 1,203,739
160,000 California St. University Trust COP ...................................... 6.000 06/01/99 161,415
425,000 Sacramento Co., CA, Airport Sys. Rev., Ser. B ............................ 3.500 07/01/99 424,983
986,000 University of California, Regents COP, Ser. A ............................ 3.200 07/01/99 983,535
255,000 Napa Valley, CA, USD GO .................................................. 7.000 08/01/99 259,735
900,000 Castro Valley CA, USD GO ................................................. 7.000 08/01/99 917,299
340,000 Fremont, CA, USD GO, Ser. A .............................................. 3.400 08/01/99 340,000
110,000 Reef-Sunset CA, USD GO ................................................... 7.500 08/01/99 112,329
330,000 Compton, CA, Cmnty Redev. Agcy. (Walnut Indl. Park), Prerefunded @ 102 ... 7.500 08/01/99 344,498
270,000 California St. Cmntys. Dev. Auth. Rev. (Monterey Peninsula) .............. 4.000 08/15/99 270,729
110,000 California St. Cmntys. Dev. Auth. Rev. (Sutter Health Obligated Group) ... 4.500 08/15/99 110,698
100,000 California St. GO ........................................................ 5.750 09/01/99 101,752
500,000 Los Angeles, CA, GO, Ser. A .............................................. 6.250 09/01/99 510,451
200,000 Glendora, CA, Pub. Fin. Auth. Rev ........................................ 3.150 09/01/99 199,908
105,000 Los Angeles Co., CA, Schs. Regionalized Business Svcs. Rev., Ser. B ...... 3.300 09/01/99 105,000
250,000 Modesto, CA, CSD COP ..................................................... 3.500 09/01/99 250,973
100,000 Southern California Rapid Tran. Dist. Rev ................................ 5.000 09/01/99 101,263
1,000,000 San Francisco, CA, City & Co., USD GO .................................... 4.500 09/22/99 1,007,741
794,000 University of California, Regents COP, Ser. A ............................ 3.250 10/01/99 792,015
300,000 California St. GO ........................................................ 6.600 11/01/99 308,631
1,345,000 California St. Dept. of Veteran Affairs, Home Purchase Rev., Ser. C ...... 4.200 12/01/99 1,346,995
802,000 University of California, Regents COP, Ser. A ............................ 3.350 01/01/00 799,995
- ----------- ------------
$14,791,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- ----------- (Amortized Cost $14,890,457) ............................................. $ 14,890,457
------------
33
<PAGE>
CALIFORNIA TAX-FREE MONEY FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Floating & Variable Rate Demand Notes-- 62.4% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 Newport Beach, CA, Rev., Ser. A (Hoag Memorial Hosp.) .................... 5.100% 01/01/99 $ 2,000,000
1,000,000 Newport Beach, CA, Rev., Ser. 1992 (Hoag Memorial Hosp.) ................. 5.100 01/01/99 1,000,000
1,800,000 Newport Beach, CA, Rev., Ser. B (Hoag Memorial Hosp.) .................... 5.100 01/01/99 1,800,000
100,000 Irvine Ranch, CA, Water Dist., Ser. 1985B ................................ 5.000 01/01/99 100,000
1,400,000 Los Angeles Co., CA, Public Works Fin. Lease Rev., Ser. 1996B ............ 5.350 01/01/99 1,400,000
2,000,000 Los Angeles, CA, MFH Rev. (Oakwood Apts.) ................................ 5.250 01/05/99 2,000,000
1,600,000 Vacaville, CA, IDA IDR (Leggett & Platt, Inc.) ........................... 4.100 01/06/99 1,600,000
3,000,000 San Rafael, CA, IDR, Ser. 1984 (Phoenix American, Inc.) .................. 4.500 01/06/99 3,000,000
1,500,000 Ontario, CA, Rev., Ser. A (Redev. Agcy. Housing Fin.) .................... 5.300 01/06/99 1,500,000
1,000,000 Montebello, CA, COP, Ser. 1997 (Montebello Public Impt. Corp.) ........... 5.000 01/06/99 1,000,000
240,000 California St. Cmntys. Dev. Auth. Rev. (Marko Products) .................. 4.800 01/06/99 240,000
260,000 California St. Cmntys. Dev. Auth. Rev. (Jaygee Reality Co. Proj.) ........ 4.850 01/06/99 260,000
2,000,000 ABN AMRO Munitops (San Diego, CA) ........................................ 4.070 01/06/99 2,000,000
560,000 California St. Cmntys. Dev. Auth. Rev. (Michigan Hanger) ................. 4.800 01/06/99 560,000
2,000,000 Rancho, CA, Water Dist. Fin. Rev., Ser. 1998A ............................ 3.750 01/06/99 2,000,000
1,000,000 Abag Fin. Auth. Nonprofit Corps. MFH Rev ................................. 4.650 01/06/99 1,000,000
1,300,000 San Bernardino Co., CA, Capital Impt. Refinancing Proj. Rev .............. 3.930 01/07/99 1,300,000
1,000,000 San Bernardino Co., CA, COP .............................................. 4.500 01/07/99 1,000,000
900,000 San Bernardino, CA, IDR (LaQuinta Motor Inns) ............................ 4.100 01/07/99 900,000
1,600,000 Alameda Co., CA, IDR (Dicon Fiberoptics, Inc., Proj. A) .................. 4.100 01/07/99 1,600,000
1,500,000 Hanford, CA, Sewer Rev., Ser. A .......................................... 4.500 01/07/99 1,500,000
100,000 California PCR Fin. Auth., Ser. 1983 (Southdown, Inc.) ................... 3.250 01/15/99 100,000
3,100,000 California PCR Fin. Auth., Ser. 1983 (Southdown, Inc.) ................... 3.250 01/15/99 3,100,000
- ----------- ------------
$30,960,000 TOTAL FLOATING AND VARIABLE RATE DEMAND NOTES
- ----------- (Amortized Cost $30,960,000) ............................................. $ 30,960,000
------------
===============================================================================================================================
Principal Coupon Maturity Market
Amount Commercial Paper -- 8.1% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 1,300,000 California PCR (PG&E) .................................................... 2.950% 01/22/99 $ 1,300,000
2,700,000 San Francisco, CA, Airport, Ser. 1997B ................................... 2.850 02/16/99 2,700,000
- ----------- ------------
$ 4,000,000 TOTAL COMMERCIAL PAPER
- ----------- (Amortized Cost $4,000,000) .............................................. $ 4,000,000
------------
$49,751,000 TOTAL INVESTMENTS AT VALUE-- 100.4%
=========== (Amortized Cost $49,850,457) ............................................. $ 49,850,457
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.4)% ........................... (198,661)
------------
NET ASSETS-- 100.0% ...................................................... $ 49,651,796
============
See accompanying notes to financial statements and notes to portfolios of
investments.
34
<PAGE>
OHIO TAX-FREE MONEY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998 (Unaudited)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Fixed Rate Revenue & General Obligation Bonds -- 30.9% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 1,450,000 Seneca Co., OH, Bldg. Acq. & Renovation GO BANS .......................... 3.700% 01/19/99 $ 1,450,175
1,500,000 Pickerington, OH, LSD School Impt. GO BANS ............................... 4.040 01/22/99 1,500,286
710,000 Wood Co., OH, Regional Water & Sewer GO BANS ............................. 4.100 01/22/99 710,058
850,000 Marysville, OH, Various Purpose GO BANS .................................. 4.070 01/28/99 850,163
3,239,377 Toledo, OH, CSD Energy Conserv. GO BANS .................................. 4.000 01/29/99 3,239,855
600,000 North Ridgeville City, OH, Waterworks Sys. Impt. GO BANS ................. 4.200 02/03/99 600,130
1,190,000 Marion Co., OH, Human Services Bldg. Impt. GO BANS ....................... 4.100 02/10/99 1,190,376
1,200,000 South Euclid-Lyndhurst, OH, CSD Energy Conserv. GO BANS .................. 3.980 02/11/99 1,200,298
1,000,000 Mason, OH, CSD GO BANS, Ser. 1998A ....................................... 4.020 02/18/99 1,000,533
2,000,000 Van Wert Co., OH, Jail Construction GO BANS .............................. 3.930 02/18/99 2,000,329
950,000 Ottawa Co., OH, Port Auth. Fac. GO BANS .................................. 3.980 02/23/99 950,372
4,040,000 Southern Ohio LSD Sch. Impt. GO BANS ..................................... 4.300 02/25/99 4,042,658
1,130,000 Akron, OH, Waterworks Rev ................................................ 3.650 03/01/99 1,130,000
500,000 Ohio St. Bldg. Auth. Rev., Ser. A ........................................ 7.150 03/01/99 502,685
1,050,000 Salem, OH, CSD School Impt. GO BANS, Ser. 1998 ........................... 3.900 03/04/99 1,050,343
3,960,000 American Municipal Power Sys. Impt. BANS (City of Wadsworth Proj.) ....... 3.850 03/17/99 3,960,000
1,650,000 Shaker Heights, OH, CSD School Impt. GO BANS ............................. 3.625 03/19/99 1,649,604
300,000 New Knoxville, OH, LSD School Impt. GO BANS .............................. 4.070 03/25/99 300,144
1,800,000 American Municipal Power Sys. Impt. BANS (Lodi Village Proj.) ............ 3.875 03/25/99 1,800,000
1,266,000 Crestline VIllage, OH, Capital Fac. GO BANS, Ser. 1998 ................... 4.250 04/07/99 1,266,639
900,000 Allen Co., OH, Bath Township Ditch GO BANS ............................... 4.100 04/13/99 900,727
1,000,000 Lakewood, OH, Local School Dist. Impt. GO BANS ........................... 4.000 04/15/99 1,002,547
700,000 Marysville, OH, Various Purpose GO BANS .................................. 3.910 04/15/99 700,504
2,000,000 Wynford, OH, GO BANS, Ser. 1998 .......................................... 3.950 04/15/99 2,002,803
3,300,000 Hebron Village, OH, Sanitary Sewer Sys. Rev., Ser. 1998 .................. 4.580 04/15/99 3,305,237
2,000,000 City of East Cleveland, OH School Dist. Impt. GO BANS .................... 3.875 04/27/99 2,003,289
1,000,000 Ohio St. Pub. Fac. Higher Educ. Rev., Ser. II-A .......................... 4.750 05/01/99 1,003,355
1,250,000 Marysville, OH, Various Purpose GO BANS .................................. 4.160 05/06/99 1,251,067
1,150,000 Ross Co., OH, Bldg. Acq. GO BANS ......................................... 4.000 05/19/99 1,150,000
450,000 Springboro, OH, GO BANS .................................................. 4.240 06/01/99 451,519
305,000 Franklin Co., OH, Holy Cross Health Sys. Corp. Rev ....................... 4.250 06/01/99 305,706
1,200,000 Muskingum Co., OH, Juvenile Detention GO BANS ............................ 3.650 06/03/99 1,201,977
2,000,000 Summit Co., OH, Various Purpose GO BANS, Ser. 1998A ...................... 4.500 06/03/99 2,006,112
1,000,000 Norwalk City, OH, Street Impt. GO BANS (Downtown Rental Proj.) ........... 4.000 06/10/99 1,000,715
2,500,000 Hamilton City, OH, Various Purpose GO BANS, Ser. 1998 .................... 3.750 06/11/99 2,500,000
2,000,000 Dayton, OH, Airport Impt. GO BANS, Ser. 1998 ............................. 3.650 06/15/99 2,001,584
2,560,000 Marysville, OH, Various Purpose GO BANS .................................. 3.850 06/15/99 2,562,816
2,650,000 Obetz Village, OH, Street Impt. GO BANS .................................. 4.170 06/15/99 2,652,616
1,870,000 St. Mary's City, OH, Sanitation Impt. GO BANS ............................ 4.200 06/15/99 1,872,440
1,100,000 Van Wert City, OH, Sewer Sys. Impt. GO BANS .............................. 4.150 06/17/99 1,101,453
410,000 Parma, OH, CSD School Impt. GO BANS ...................................... 3.850 06/24/99 410,000
1,640,000 Clark Co., OH, Various Purpose GO BANS ................................... 4.150 06/24/99 1,642,635
820,000 Columbus, OH, GO (Police/Fireman Disability) ............................. 4.000 07/15/99 821,484
800,000 Miami Co., OH, Bldg. Impt. GO BANS ....................................... 3.800 07/15/99 801,864
2,100,000 American Municipal Power Sys. Impt. BANS (Monepelier Villa GE Proj.) ..... 3.950 07/15/99 2,100,000
1,200,000 Sandusky Co., OH, Various Purpose GO BANS ................................ 4.125 07/29/99 1,202,948
927,500 Mason-Deerfield, OH, Joint Fire Dist. GO BANS, Ser. 1998 ................. 4.000 08/05/99 927,500
2,500,000 Ottawa Co., OH, Regional Water Sys. Impt. GO BANS ........................ 4.000 08/06/99 2,504,578
625,000 Lake Co., OH, Hosp. Fac. Rev., Ser. 1998 (Lake Hosp. Sys.) ............... 4.000% 08/15/99 626,497
35
<PAGE>
OHIO TAX-FREE MONEY FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Fixed Rate Revenue & General Obligation Bonds -- 30.9% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 American Municipal Power Sys. Impt. BANS (City of Bryan Proj.) ........... 3.850 08/27/99 $ 3,000,000
520,000 Washington Co., OH, Hosp. Impt. Rev. (Marietta Area Health) .............. 4.000 09/01/99 521,339
375,000 Springboro City, OH, Clear Creek Park Impt. GO BANS ...................... 4.150 09/02/99 375,601
900,000 Springboro, OH, Street Impt. GO BANS (South Tech. Bus. Park) ............. 4.050 09/09/99 902,086
1,000,000 Loveland, OH, Real Estate Acq. GO BANS ................................... 3.860 09/09/99 1,001,393
1,000,000 American Municipal Power Sys. Impt. BANS (Bowling Green) ................. 3.800 09/10/99 1,000,000
200,000 American Municipal Power Sys. Impt. BANS (Bowling Green) ................. 3.800 09/10/99 200,000
500,000 Ravena Township, OH, Twp. Hall and Garage GO BANS ........................ 4.050 09/15/99 501,186
2,440,000 Muskingum Co., OH, Various Purpose GO BANS ............................... 3.800 09/22/99 2,445,111
1,475,000 Mayfield Village, OH, Various Purpose GO BANS ............................ 3.650 09/28/99 1,477,299
1,000,000 Ohio St. Bldg. Auth. Rev., Ser. C, Prerefunded @ 103 ..................... 7.200 10/01/99 1,056,555
500,000 Gallia Co., OH, Hosp. Fac. Rev. (Holzer Med. Center) ..................... 3.300 10/01/99 500,000
600,000 Beachwood, OH, Street & Sewer Impt. GO BANS .............................. 3.750 10/07/99 601,104
550,000 Van Wert Co., OH, Various Purpose GO BANS ................................ 3.800 10/13/99 551,658
1,945,400 Jackson Co., OH, Various Purpose GO BANS, Ser. 1998 ...................... 3.620 10/14/99 1,950,108
2,000,000 Lucas Co., OH, Metro Sewer & Water Dist. Rev., Ser. 1998 ................. 3.625 10/20/99 2,005,024
2,300,000 American Municipal Power Sys. Impt. BANS (Pioneer Village Proj.) ......... 3.400 11/05/99 2,300,000
1,065,000 Marysville, OH, Various Purpose GO BANS .................................. 3.510 11/18/99 1,067,357
2,000,000 Summit Co., OH, Various Purpose GO BANS, Ser. 1998 ....................... 3.625 11/18/99 2,012,383
3,500,000 Hamilton Co., OH, Real Estate Acq. Rev. BANS (Hamilton Enterprise Park Proj.) 3.260 11/18/99 3,507,747
1,000,000 Belmont Co., OH, Sanitary Sewer Impt. GO BANS ............................ 3.510 11/23/99 1,002,248
1,545,000 Marion Co., OH, Various Purpose GO BANS .................................. 3.470 11/23/99 1,547,939
580,000 Muskingum Co., OH, Brandywine Blvd. Extension GO BANS .................... 3.650 11/30/99 581,405
2,000,000 Eastern Ohio Regional Wastewater Auth., Wastewater Impt. Rev. BANS ....... 4.200 12/02/99 2,005,743
2,000,000 American Municipal Power Sys. Impt. BANS ................................. 3.400 12/03/99 2,000,000
1,000,000 Logan Co., OH, Sanitary Sewer Sys. Impt. GO BANS ......................... 3.640 12/15/99 1,002,675
810,000 Mahoning Valley, OH, Sanitation Dist. Rev ................................ 4.000 12/15/99 816,783
- ------------ ------------
$108,148,277 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- ------------ (Amortized Cost $108,341,365) ............................................ $108,341,365
------------
===============================================================================================================================
Principal Coupon Maturity Market
Amount Floating and Variable Rate Demand Notes -- 62.0% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 500,000 Ohio St. Higher Educ. Fac. Rev. (John Carroll University) ................ 4.350% 01/04/99 $ 500,000
500,000 Franklin Co., OH, Health Sys. Rev. (St. Anthony Medical Center) .......... 4.900 01/04/99 500,000
100,000 Ohio St. Water Dev. Auth. Impt. Rev., Ser. 1996B (Mead Corp.) ............ 4.900 01/04/99 100,000
1,950,000 Ohio St. Air Quality Dev. Auth. Rev., Ser. 1985B (CG&E) .................. 5.200 01/04/99 1,950,000
14,000,000 Hamilton Co., OH, Health Sys. Rev. (Franciscan Sisters) .................. 6.000 01/04/99 14,000,000
1,100,000 Ohio St. PCR (Sohio Air Proj.) ........................................... 5.000 01/04/99 1,100,000
1,210,000 Ohio St. PCR (Sohio Water Proj.) ......................................... 5.000 01/04/99 1,210,000
9,000,000 Ohio St. Air Quality Dev. Auth. Rev., Ser. A (CG&E) ...................... 5.000 01/04/99 9,000,000
2,200,000 Ohio St. Air Quality Dev. Auth. Rev., Ser. 1995A (CG&E) .................. 5.200 01/04/99 2,200,000
375,000 Franklin Co., OH, IDR (BOA Ltd. Proj.) ................................... 3.800 01/04/99 375,000
500,000 Ohio St. Env. Impt. Rev. (U.S. Steel Corp.) .............................. 3.500 01/04/99 500,000
3,100,000 Delaware Co., OH, IDR (Radiation Sterilizers, Inc.) ...................... 3.500 01/04/99 3,100,000
1,765,000 Franklin Co., OH, IDR (Capitol South) .................................... 3.800 01/04/99 1,765,000
3,885,000 Cuyahoga Co., OH, IDR (S&R Playhouse Realty) ............................. 3.500 01/04/99 3,885,000
2,900,000 Muskingum Co., OH, IDR (Elder-Beerman) ................................... 3.500 01/04/99 2,900,000
1,300,000 Franklin Co., OH, IDR (Jacobsen Stores) .................................. 3.800 01/04/99 1,300,000
2,200,000 Cuyahoga Co., OH, Educ. Fac. Rev., Ser. 1998
(United Cerebral Palsy Assoc.) ........................................... 4.050 01/06/99 2,200,000
3,200,000 Hamilton Co., OH, Hosp. Fac. Rev., Ser. E
(Health Alliance of Greater Cincinnati) .................................. 4.050% 01/06/99 3,200,000
36
<PAGE>
OHIO TAX-FREE MONEY FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Floating and Variable Rate Demand Notes -- 62.0% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 950,000 Centerville, OH, Health Care Rev. (Bethany Memorial) ..................... 4.100 01/06/99 $ 950,000
3,000,000 Cuyahoga Co., OH, Hosp. Rev., Ser. 1997C
(Cleveland Clinic Foundation) ............................................ 4.100 01/06/99 3,000,000
1,700,000 Lorain Co., OH, IDR (EMH Med. Ctr. Proj.) ................................ 4.050 01/06/99 1,700,000
1,000,000 Butler Co., OH, IDR (Phillip Morris Co.) ................................. 4.300 01/06/99 1,000,000
1,245,000 Greene Co., OH, Health Care Fac. Rev. (Green Oaks Proj.) ................. 4.050 01/06/99 1,245,000
2,240,000 Erie Co., OH, IDR (Toft Dairy, Inc.) ..................................... 4.050 01/06/99 2,240,000
715,000 Orrville, OH, Hosp. Fac. Rev., Ser. 1990 (Orrville Hosp.) ................ 4.000 01/06/99 715,000
3,000,000 Clinton Co., OH, Hosp. Rev. (Ohio Hospital Cap., Inc.) ................... 4.000 01/06/99 3,000,000
2,000,000 Montgomery Co., OH, EDR (Dayton Art Institute) ........................... 4.150 01/06/99 2,000,000
7,000,000 ABN AMRO Munitops Trust Certificates 1998-18 (Cleveland Water Works) ..... 4.100 01/06/99 7,000,000
865,000 Monroe, OH, IDR, Ser. 1985 (Magnode Corp.) ............................... 3.800 01/06/99 865,000
900,000 Wyandot Co., OH, IDR, Ser. 1985 (MRG Ltd. Proj.) ......................... 4.100 01/06/99 900,000
3,500,000 Summit, OH, Civic Fac., Ser. 1997 (YMCA Proj.) ........................... 4.050 01/06/99 3,500,000
4,000,000 Lorain Co., OH, Hosp. Fac. Rev., Ser. 1998A (Catholic Healthcare Partners) 3.950 01/06/99 4,000,000
885,000 Cuyahoga Co., OH, IDR (Pleasant Lake Assoc.) ............................. 4.050 01/06/99 885,000
2,050,000 Summit Co., OH, IDR (Bowery Assoc.) ...................................... 4.050 01/06/99 2,050,000
900,000 Meigs Co., OH, IDR, Ser. 1985 (MRG Ltd. Proj.) ........................... 4.100 01/06/99 900,000
494,000 Lorain Co., OH, IDR, Ser. C (Kindercare) ................................. 4.150 01/06/99 494,000
300,000 Medina, OH, IDR (Kindercare) ............................................. 4.150 01/06/99 300,000
900,000 Delaware Co., OH, IDR, Ser. 1985 (MRG Ltd. Proj.) ........................ 4.100 01/06/99 900,000
375,000 Hudson Village, OH, IDR, Ser. A (Kindercare) ............................. 4.150 01/06/99 375,000
885,000 Huron Co., OH, Rev. (Norwalk Furniture Corp.) ............................ 4.050 01/06/99 885,000
520,000 Montgomery Co., OH, Health Care Rev., Ser. A
(Dayton Area MRI Consortium) ............................................. 4.050 01/06/99 520,000
555,000 Cuyahoga Co., OH, Health Care Fac. Rev., Ser. 1993A
(Hospice of the Western Reserve) ......................................... 4.050 01/06/99 555,000
340,000 Montgomery Co., OH, IDR (Kindercare) ..................................... 4.150 01/06/99 340,000
437,000 Stark Co., OH, IDR, Ser. D (Kindercare) .................................. 4.150 01/06/99 437,000
935,000 Lucas Co., OH, IDR, Ser. D (Kindercare) .................................. 4.150 01/06/99 935,000
564,000 Franklin Co., OH, IDR, Ser. D (Kindercare) ............................... 4.150 01/06/99 564,000
1,980,000 Defiance Co., OH, IDR (Isaac Property Proj.) ............................. 4.050 01/06/99 1,980,000
1,000,000 Morrow Co., OH, IDR (Field Container Corp.) .............................. 4.050 01/06/99 1,000,000
287,000 Middletown, OH, IDR, Ser. A (Kindercare) ................................. 4.150 01/06/99 287,000
3,500,000 Ohio St. Higher Educ. Fac. Rev. (Kenyon College Proj.) ................... 4.150 01/06/99 3,500,000
375,000 Wadsworth, OH, IDR (Kindercare) .......................................... 4.150 01/06/99 375,000
1,750,000 Cuyahoga Co., OH, Health Care Fac. Rev., Ser. 1993B
(Hospice of the Western Reserve) ......................................... 4.050 01/06/99 1,750,000
1,390,000 Village of Andover, OH, Health Care Rev., Ser. 1996 (D&M Realty Proj.) ... 4.050 01/06/99 1,390,000
1,900,000 Ashland Co., OH, Hosp. Fac. Rev., Ser. 1989 (Good Shepherd Home) ......... 4.000 01/06/99 1,900,000
1,000,000 Toledo, OH, City Service Special Assessment .............................. 4.000 01/06/99 1,000,000
1,270,000 Franklin Co., OH, Health Care Fac. Rev. (Lifeline Organ Procurement) ..... 4.050 01/07/99 1,270,000
468,000 Cleveland, OH, Parking Fac. Rev .......................................... 4.100 01/07/99 468,000
2,380,000 Franklin Co., OH, EDR (Dominican Sisters) ................................ 4.050 01/07/99 2,380,000
905,000 Ohio St. Water Dev. Auth. Impt. Rev ...................................... 4.100 01/07/99 905,000
4,430,000 Trumbull Co., OH, Health Care Fac. Rev. (Shepherd of the Valley) ......... 4.050 01/07/99 4,430,000
510,000 Marion Co., OH, Hosp. Impt. Rev. (Pooled Lease Proj.) .................... 4.050 01/07/99 510,000
100,000 Marion Co., OH, Hosp. Impt. Rev. (Pooled Lease Proj.) .................... 4.050 01/07/99 100,000
3,800,000 Montgomery Co., OH, Ltd. Oblig. Rev., Ser. 1996
(St. Vincent de Paul Proj.) .............................................. 4.200 01/07/99 3,800,000
7,305,000 Lima, OH, Hosp. Fac. & Impt. Rev., Ser. 1996 (Lima Memorial Hosp.) ....... 4.050 01/07/99 7,305,000
1,515,000 Mahoning Co., OH (Ohio Heart Institute) .................................. 4.050 01/07/99 1,515,000
3,200,000 Butler Co., OH, Hosp. Fac. Rev., Ser. 1998A
(Berkeley Square Retirement Cntr. Proj.) ................................. 4.050 01/07/99 3,200,000
425,000 Akron, Bath & Copley, OH, Joint Twnsp. Hosp. Rev .........................
(Visiting Nurse Svcs. Proj.) ............................................. 4.100% 01/07/99 425,000
37
<PAGE>
OHIO TAX-FREE MONEY FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Floating and Variable Rate Demand Notes -- 62.0% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 300,000 Lucas Co., OH, Rev. (Sunshine Children's Home) ........................... 4.100 01/07/99 $ 300,000
3,600,000 Ashtabula Co., OH, Hosp. Fac. Rev., Ser. 1995
(Ashtabula Co. Med. Ctr. Proj.) .......................................... 4.050 01/07/99 3,600,000
1,150,000 Franklin Co., OH, IDR (Ohio Girl Scouts) ................................. 4.050 01/07/99 1,150,000
1,560,000 Allen Co., OH, Health Care Fac. Rev. (Mennonite Memorial Home Proj.) ..... 4.000 01/07/99 1,560,000
1,900,000 Summit Co., OH, Health Care Fac. Rev., Ser. 1997 (Evant, Inc. Proj.) ..... 4.100 01/07/99 1,900,000
1,700,000 Clinton Co., OH, Hosp. Rev. (Clinton Memorial Hosp.) ..................... 4.100 01/07/99 1,700,000
5,575,000 Sharonville, OH, IDR (Duke Realty Proj.) ................................. 4.050 01/07/99 5,575,000
5,000,000 Hamilton Co., OH, Fac. Rev., Ser. 1997A (Episcopal Retirement Homes) ..... 4.050 01/07/99 5,000,000
1,600,000 Warren Co., OH, IDR (Liquid Container Proj.) ............................. 4.050 01/07/99 1,600,000
3,555,000 Montgomery Co., OH, Health Care Rev. (Comm. Blood Ctr. Proj.) ............ 4.050 01/07/99 3,555,000
8,000,000 Franklin Co., OH, IDR (Berwick Steel) .................................... 5.000 01/07/99 8,000,000
1,000,000 Franklin Co., OH, Hosp. Rev. (U.S. Health Corp.) ......................... 4.050 01/07/99 1,000,000
4,400,000 Ohio St. Higher Educ. Fac. Rev. (Pooled Fin.) ............................ 4.050 01/07/99 4,400,000
400,000 Franklin Co., OH, IDR (Columbus College) ................................. 4.050 01/07/99 400,000
900,000 Rickenbacker, OH, Port. Auth. Rev. (Rickenbacker Holdings, Inc.) ......... 4.050 01/07/99 900,000
4,900,000 Ohio St. Higher Educ. Fac. Rev. (Pooled Fin.) ............................ 4.050 01/07/99 4,900,000
5,300,000 Hamilton Co., OH, Hosp. Fac. Rev., Ser. 1997A (Children's Hosp. Med. Ctr.) 4.000 01/07/99 5,300,000
1,955,000 Mahoning Co., OH, Health Care Fac. Rev. (Copeland Oaks) .................. 4.050 01/07/99 1,955,000
590,000 Ohio St. IDR, Ser. 1994 (A.M. Castle & Co. Proj.) ........................ 4.450 01/07/99 590,000
2,000,000 Geauga Co., OH, Health Care Fac. Rev., Ser. 1998A (Heather Hill Proj.) ... 4.100 01/07/99 2,000,000
3,500,000 Delaware Co., OH, Health Care Fac. Rev.,
Ser. 1998 (Sarah Moore Home Proj.) ....................................... 4.150 01/07/99 3,500,000
3,950,000 Franklin Co., OH, EDR, Ser. 1998 (Unity Resource Center Proj.) ........... 4.050 01/07/99 3,950,000
3,000,000 Hamilton OH, MFH Rev., Ser. A (Knollwood Village Apts.) .................. 4.050 01/07/99 3,000,000
2,000,000 Hamilton OH, MFH Rev. (Knollwood Village Apts.) .......................... 4.050 01/07/99 2,000,000
2,690,000 Hancock Co., OH, MFM Rev., Ser. A (Crystal Glen Apts. Proj. Phase II) .... 4.050 01/07/99 2,690,000
610,000 Pike Co., OH, EDR (Pleasant Hill) ........................................ 4.050 01/07/99 610,000
1,178,900 Hamilton Co., OH, EDR, Ser. 1995 (Cincinnati Assoc. for the Performing Arts) 4.050 01/07/99 1,178,900
405,000 Lucas Co., OH, IDR (Associates Proj.) .................................... 4.150 01/07/99 405,000
535,000 Summit Co., OH, IDR (Go-Jo Indust., Inc. Proj.) .......................... 4.050 01/07/99 535,000
2,000,000 Franklin Co., OH, IDR (Alco Standard Corp.) .............................. 4.100 01/07/99 2,000,000
4,800,000 Ohio St., EDR, Ser. 1983 (Court St. Ctr. Assoc. Ltd. Proj.) .............. 4.100 01/07/99 4,800,000
1,750,000 Westlake, OH, IDR (Nordson Co.) .......................................... 4.150 01/07/99 1,750,000
2,000,000 Cuyahoga Co., OH, IDR, Ser. 1989 (Motch Corp. Proj.) ..................... 4.200 01/07/99 2,000,000
1,400,000 Hamilton Co., OH, IDR (ADP System) ....................................... 3.500 01/15/99 1,400,000
- ------------ ------------
$216,733,900 TOTAL FLOATING AND VARIABLE RATE DEMAND NOTES
- ------------ (Amortized Cost $216,733,900) ............................................ $216,733,900
------------
38
<PAGE>
OHIO TAX-FREE MONEY FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Adjustable Rate Put Bonds -- 6.4% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 615,000 Riverside, OH, EDR (Riverside Assoc. Ltd. Proj.) ......................... 3.600% 03/01/99 $ 615,000
4,740,000 Cuyahoga Co., OH, IDR (Halle Office Building) ............................ 3.790 04/01/99 4,740,000
165,000 Franklin Co., OH, IDR (Pan Western Life) ................................. 3.650 04/01/99 165,000
1,390,000 Clermont Co., OH, EDR (John Q. Hammons Proj.) ............................ 3.400 05/01/99 1,390,000
580,000 Franklin Co., OH, IDR (GSW Proj.) ........................................ 3.250 05/01/99 580,000
3,030,000 Ohio St. HFA MFH (Lincoln Park) .......................................... 3.600 05/01/99 3,030,000
3,570,000 Richland Co., OH, IDR (Mansfield Sq. Proj.) .............................. 3.100 05/15/99 3,570,000
585,000 Cuyahoga Co., OH, Health Care Rev ........................................ 3.400 06/01/99 585,000
2,215,000 Franklin Co., OH, IDR (Leveque & Assoc. Proj.) ........................... 3.000 06/01/99 2,215,000
875,000 Scioto Co., OH, Health Care Rev. (Hillview Retirement) ................... 3.000 06/01/99 875,000
940,000 Gallia Co., OH, IDR (Jackson Pike Assoc.) ................................ 3.000 06/15/99 940,000
2,495,000 Perry Co., OH, Nursing Fac. Rev., Ser. 1996
(New Lexington Health Corp. Proj.) ....................................... 4.000 09/01/99 2,495,000
1,195,000 Miami Valley Tax-Exempt Mtg. Bond Trust .................................. 4.880 10/15/99 1,195,000
- ------------ ------------
$ 22,395,000 TOTAL ADJUSTABLE RATE PUT BONDS
- ------------ (Amortized Cost $22,395,000) ............................................. $ 22,395,000
------------
===============================================================================================================================
Principal Coupon Maturity Market
Amount Commercial Paper -- 0.8% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Lorain Co., OH ........................................................... 2.950% 02/04/99 $ 3,000,000
- ------------ ------------
TOTAL COMMERCIAL PAPER
(Amortized Cost $3,000,000)
$350,277,177 TOTAL INVESTMENTS AT VALUE-- 100.1%
============ (Amortized Cost $350,470,265) ............................................ $350,470,265
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.1)% ........................... (288,354)
------------
NET ASSETS-- 100.0% ...................................................... $350,181,911
============
See accompanying notes to financial statements and notes to portfolios of
investments.
39
<PAGE>
FLORIDA TAX-FREE FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998 (Unaudited)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Fixed Rate Revenue & General Obligation Bonds -- 14.8% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 320,000 Florida St. Board of Educ. Cap. Outlay GO, Ser. A ........................ 5.400% 01/01/99 $ 320,000
1,000,000 Florida St. Board of Educ. Cap. Outlay GO, Ser. A ........................ 4.500 01/01/99 1,000,000
185,000 Escambia Co., FL, Utilities Auth. Rev., Ser. 1998A ....................... 3.600 01/01/99 185,000
130,000 Live Oak, FL, Excise Tax Rev ............................................. 4.950 01/01/99 130,000
125,000 Escambia Co., FL, Health Fac. Auth. Rev ..................................
(Azalea Trace, Inc.), Prerefunded @ 102 .................................. 9.250 01/01/99 127,500
300,000 West Palm Beach, FL, GO, Prerefunded @ 102 ............................... 6.000 03/01/99 307,029
500,000 Homestead, FL, Special Ins. Assessment Rev ............................... 4.750 03/01/99 501,315
265,000 Osceola Co., FL, Gas Tax Rev ............................................. 3.850 04/01/99 265,208
1,000,000 Broward Co., FL, Educ. Fac. Auth. Rev., Prerefunded @ 102 ................ 8.500 04/01/99 1,032,355
360,000 Dade Co., FL, School Board COP, Ser. A ................................... 4.300 05/01/99 360,550
220,000 Florida St. Board of Educ. Cap. Outlay GO, Ser. D ........................ 4.500 06/01/99 220,887
1,000,000 Florida St. Board of Educ. Cap. Outlay GO, Ser. B ........................ 6.500 06/01/99 1,012,550
1,320,000 Broward Co., FL, COP, Master Lease Program ............................... 3.100 06/01/99 1,320,516
490,000 Marion Co., FL, School Board COP, Ser. B ................................. 3.000 06/01/99 489,858
245,000 Jacksonville, FL, Elec. Auth. Rev., Ser. A
(Baptist Med. Ctr.), Prerefunded @ 102 ................................... 7.300 06/01/99 252,457
100,000 Florida St. PCR, Ser. X .................................................. 5.600 07/01/99 100,891
2,500,000 Port St. Joe, FL, Cap. Impt. Rev. BANS, Ser. 1998 ........................ 4.350 07/01/99 2,504,051
325,000 Cape Coral, FL, GO, Prerefunded @ 102 .................................... 6.800 07/01/99 337,211
100,000 Brevard Co., FL, School Board COP, Ser. A ................................ 5.300 07/01/99 100,746
200,000 Broward Co., FL, School Board COP ........................................ 6.750 07/01/99 203,107
100,000 Broward Co., FL, School Board COP ........................................ 6.000 07/01/99 101,138
100,000 Florida St. Div. Board Fin. Rev. (Dept. of Natural Resources) ............ 4.600 07/01/99 100,640
175,000 St. Johns Co., FL, School Board COP ...................................... 4.400 07/01/99 176,022
200,000 Miami-Dade Co., FL, School Board COP, Ser. A ............................. 4.000 08/01/99 200,562
250,000 Palm Beach Co., FL, School Board COP ..................................... 5.375 08/01/99 253,093
500,000 Palm Beach Co., FL, School Board COP ..................................... 4.500 08/01/99 502,972
100,000 Dade Co., FL, School Board COP ........................................... 4.625 08/01/99 100,492
100,000 Florida St. Correctional Privatization COP (Bay Co. Proj.) ............... 4.625 08/01/99 100,810
100,000 Florida St. Dept. Gen. Services Div. Facs. Mgmt. Rev., Ser. B ............ 4.600 09/01/99 100,712
150,000 Homestead, FL, Special Ins. Assessment Rev ............................... 4.750 09/01/99 151,069
500,000 Dade Co., FL, Water & Sewer System Rev ................................... 4.750 10/01/99 506,211
100,000 Jacksonville, FL, Elec. Auth. Rev ........................................ 4.600 10/01/99 101,022
100,000 Pinellas Co., FL, Resource Recovery Rev., Ser. A ......................... 6.500 10/01/99 102,376
155,000 Jacksonville, FL, Elec. Auth. Rev., Ser. 5
(St. John's River), Prerefunded @ 100 .................................... 6.000 10/01/99 158,051
500,000 Hillsborough Co., FL, Aviation Auth. Rev., Ser. B, Prerefunded @ 102 ..... 7.000 10/01/99 522,483
- ------------ ------------
$ 13,815,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- ------------ (Amortized Cost $13,948,884) ............................................. $ 13,948,884
------------
===============================================================================================================================
Principal Coupon Maturity Market
Rate Floating & Variable Rate Demand Notes -- 67.1% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 5,100,000 Jacksonville, FL, Health Fac. Auth. Rev., Ser. 1996 (Genesis Rehab. Hosp.) 4.750% 01/01/99 $ 5,100,000
3,400,000 Hillsborough Co., FL, IDA PCR (Tampa Elec.) .............................. 4.000 01/01/99 3,400,000
4,000,000 Pinellas Co., FL, HFA Rev. (Pooled Hosp. Loan) ........................... 4.700 01/01/99 4,000,000
500,000 Florida St. Board of Educ. Cap. Outlay Rev., Ser. 1997 ................... 5.000 01/01/99 500,000
2,200,000 Manatee Co., FL, PCR (Florida Power & Light) ............................. 4.700 01/01/99 2,200,000
7,600,000 St. Lucie Co., FL, PCR (Florida Power & Light) ........................... 4.700 01/01/99 7,600,000
400,000 Tampa Sports Auth. Rev. (Stadium Proj.) .................................. 5.000 01/01/99 400,000
40
<PAGE>
FLORIDA TAX-FREE FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Rate Floating & Variable Rate Demand Notes -- 67.1% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 1,680,000 Putnam Co., FL, Dev. Auth. PCR (Florida Power & Light) ................... 4.700% 01/01/99 $ 1,680,000
875,000 Volusia Co., FL, HFA MFH Rev., Ser. H (Sun Pointe Apts.) ................. 3.500 01/05/99 875,000
1,900,000 Broward Co., FL, HFA MFH Rev. (Margate Investment Proj.) ................. 3.750 01/06/99 1,900,000
900,000 Eustis, FL, Multi-Purpose Rev ............................................ 4.000 01/06/99 900,000
2,000,000 Florida St. of Environmental Preservation 2000 Rev ....................... 4.100 01/06/99 2,000,000
2,000,000 Orange Co., FL, IDR, Ser. 1997 (Univ. of Central Florida Foundation) ..... 3.600 01/06/99 2,000,000
900,000 St. Petersburg, FL, HFA Rev., Ser. 97 (Menorah Manor Project) ............ 4.000 01/06/99 900,000
1,305,000 Florida HFA MFH Rev., Ser. EEE (Carlton Arms II Proj.) ................... 3.900 01/06/99 1,305,000
1,300,000 Manatee Co., FL, HFA MFH Rev. (Harbour Proj. B) .......................... 4.200 01/06/99 1,300,000
200,000 Clay Co., FL, HFA, MFH Rev. (Bluff Apts. Phase I) ........................ 3.300 01/06/99 200,000
2,000,000 ABN AMRO Munitops Cert. Trust 1998-8 (Dade Co., FL, Water & Sewer Sys. Rev.) 4.200 01/06/99 2,000,000
2,000,000 ABN AMRO Munitops Cert. Trust 1998-9 (Florida Board of Educ., Ser. 1998) . 4.200 01/06/99 2,000,000
225,000 Putnam Co., FL, Dev. Auth. PCR, Ser. H-1 (Seminole Elec. Coop.) .......... 4.050 01/06/99 225,000
630,000 Putnam Co., FL, Dev. Auth. PCR, Ser. H-2 (Seminole Elec. Coop.) .......... 4.050 01/06/99 630,000
400,000 Dade Co., FL, IDA Rev .................................................... 3.950 01/06/99 400,000
1,000,000 Lee Co., FL, IDR Educ. Fac. Rev. (The Canterberury School Proj.) ......... 4.000 01/06/99 1,000,000
5,000,000 Dade Co., FL, Water & Sewer Sys. Rev ..................................... 3.400 01/06/99 5,000,000
2,800,000 Orange Co., FL, IDA Rev. (Trinity Prep School) ........................... 3.600 01/06/99 2,800,000
2,000,000 Boca Raton, FL, IDR (Parking Garage) ..................................... 4.370 01/07/99 2,000,000
1,600,000 Plant City, FL, Hosp. Rev. (South Florida Baptist Hosp.) ................. 4.050 01/07/99 1,600,000
1,500,000 Marion Co., FL, HFA Rev. (Summer Trace Apts.) ............................ 3.750 01/07/99 1,500,000
1,500,000 Marion Co., FL, HFA Rev. (Paddock Place Proj.) ........................... 3.750 01/07/99 1,500,000
1,300,000 Jacksonville, FL, Health Fac. Rev. (Faculty Practice Assoc.) ............. 4.100 01/07/99 1,300,000
1,000,000 Florida Housing Fin. Corp. MFH Rev., (South Pointe Proj.) ................ 3.800 01/07/99 1,000,000
1,000,000 Highlands Co., FL, Health Fac. Rev. (Adventist Sunbelt) .................. 3.950 01/07/99 1,000,000
1,000,000 Jacksonville, FL, Health Fac. Rev. (River Garden) ........................ 3.550 01/21/99 1,000,000
1,350,000 Jacksonville, FL, Health Fac. Rev. (River Garden) ........................ 3.600 01/21/99 1,350,000
- ------------ ------------
$ 62,565,000 TOTAL FLOATING & VARIABLE RATE DEMAND NOTES
- ------------ (Amortized Cost $62,565,000) ............................................. $ 62,565,000
------------
41
<PAGE>
FLORIDA TAX-FREE FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Adjustable Rate Put Bonds -- 1.1% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 Putnam Co., FL, Dev. Auth. PCR, Ser. 1984D (Seminole Elec. Coop.) ........ 3.150% 01/06/99 $ 1,000,000
- ------------ ------------
TOTAL ADJUSTABLE RATE PUT BONDS
(Amortized Cost $1,000,000)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Commercial Paper -- 14.4% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 Pinellas Co., FL, Educ. Fac. Auth. Rev. (Pooled Loan Program) ............ 3.150% 01/06/99 $ 2,000,000
1,500,000 St. Lucie Co., FL, Rev ................................................... 3.000 01/11/99 1,500,000
4,300,000 Sarasota Co., FL, Pub. Hosp. Dist. Rev. (Sarasota Memorial Hosp.) ........ 3.200 01/15/99 4,299,398
3,000,000 Sunshine St. Govt. Fin. Comm. Rev., Ser. B ............................... 2.950 01/19/99 3,000,000
2,500,000 Orange Co., FL, Health Fac. Auth. Rev .................................... 3.050 01/21/99 2,500,000
- ------------ ------------
$ 13,300,000 TOTAL COMMERCIAL PAPER
- ------------ (Amortized Cost $13,299,398) ............................................. $ 13,299,398
------------
$ 90,680,000 TOTAL INVESTMENTS AT VALUE-- 97.4%
============ (Amortized Cost $90,813,282) ............................................. $ 90,813,282
OTHER ASSETS IN EXCESS OF LIABILITIES-- 2.6% ............................. 2,434,372
------------
NET ASSETS-- 100.0% ...................................................... $ 93,247,654
============
See accompanying notes to financial statements and notes to portfolio of
investments.
42
<PAGE>
TAX-FREE INTERMEDIATE TERM FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998 (Unaudited)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Municipal Bonds -- 102.8% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
ARIZONA -- 3.0%
$ 400,000 Arizona Educ. Loan Mkt. Corp. Rev., Ser. A ............................... 6.700% 03/01/00 $ 413,588
600,000 Maricopa Co., AZ, School Dist. Rev., Ser. 1991C (Tempe Elem.) ............ 8.000 07/01/04 721,380
300,000 Tucson, AZ, Water Dist. Rev .............................................. 9.750 07/01/10 444,090
------------
1,579,058
------------
CALIFORNIA -- 2.4%
455,000 Sacramento Co., CA, MFH ARPB (Fairway One Apts.) ......................... 5.875 02/01/03 455,473
500,000 Santa Monica, CA, Redev. Agy. Lease Rev .................................. 6.000 07/01/03 543,810
250,000 California HFA Multi-Unit Rental Rev., Ser. B ............................ 6.500 08/01/05 266,085
------------
1,265,368
------------
COLORADO -- 0.6%
300,000 Highland Ranch, CO, Metro Dist. GO, Ser. A ............................... 5.000 12/01/10 304,080
------------
FLORIDA -- 12.3%
500,000 Florida HFA MFH ARPB, Ser. 1978B (Hampton Lakes II Proj.) ................ 5.700 04/01/01 502,145
750,000 Hillsborough Co., FL, Solid Waste Rev .................................... 5.500 10/01/06 809,790
455,000 Pensacola, FL, Airport Rev., Ser. 1997B .................................. 5.400 10/01/07 492,010
1,000,000 Pasco Co., FL, HFA MFH Rev., Ser. 1997B (Cypress Trail Apts.) ............ 5.500 06/01/08 1,055,590
1,345,000 Florida HFA MFA Sr. Lien, Ser. I-1 ....................................... 6.100 01/01/09 1,422,445
1,000,000 Halifax Hosp. Medical Ctr., FL, Health Care Fac. Rev., Ser. 1998A ........ 4.800 04/01/10 1,011,640
365,000 Halifax Hosp. Medical Ctr., FL, Health Care Fac. Rev., Ser. 1998A ........ 5.000 04/01/11 372,756
455,000 Tampa, FL, Health Sys. Rev., Ser. A-1 (Catholic Health East) ............. 5.250 11/15/11 486,572
365,000 Halifax Hosp. Medical Ctr., FL, Health Care Fac. Rev., Ser. 1998A ........ 5.000 04/01/12 369,796
------------
6,522,744
------------
GEORGIA -- 1.0%
500,000 Savannah, GA, Hosp. Auth. Rev ............................................ 5.250 07/01/13 521,970
------------
ILLINOIS -- 9.5%
235,000 Harvard, IL, Health Care Fac. Rev., Ser. 1998 (Harvard Memorial Hosp.) ... 4.250 07/01/18 235,000
------------
INDIANA -- 0.4%
3,185,000 Purdue University, IN, COP, Prerefunded @ 102 ............................ 6.250 07/01/01 3,440,947
1,000,000 Indiana Bond Bank Special Prog. Rev., Ser. A-1 ........................... 6.650 01/01/04 1,074,150
500,000 Indiana HFA Multi-Unit Mtg. Prog. Rev., Ser. 1992A ....................... 6.600 01/01/12 533,135
------------
5,048,232
------------
IOWA -- 2.2%
130,000 Cedar Rapids, IA, Hosp. Fac. Rev .........................................
(St. Luke's Methodist Hosp.), Prerefunded @ 102 .......................... 6.000 08/15/03 142,396
250,000 Iowa Student Loan Liquidity Corp. Rev .................................... 6.400 07/01/04 270,580
345,000 Iowa HFA Rev ............................................................. 6.500 07/01/06 365,634
240,000 Iowa Student Loan Liquidity Corp. Rev .................................... 6.600 07/01/08 255,432
120,000 Cedar Rapids, IA, Hosp. Fac. Rev. (St. Luke's Methodist Hosp.) ........... 6.000 08/15/09 132,889
------------
1,166,931
------------
KENTUCKY -- 2.9%
675,000 Owensboro, KY, Elec. Light & Power Rev., Prerefunded @ 102 ............... 10.250 01/01/00 734,724
750,000 Kentucky St. Turnpike Auth. EDR (Revitalization Proj.) ................... 5.250 07/01/05 805,418
------------
1,540,142
------------
43
<PAGE>
TAX-FREE INTERMEDIATE TERM FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Municipal Bonds -- 102.8% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
LOUISIANA -- 1.9%
$ 440,000 Louisiana Public Fac. Auth. Rev. (Medical Ctr. of Louisiana) ............. 6.000% 10/15/03 $ 470,527
500,000 West Ouachita Parish, LA, School Dist. GO, Ser. A ........................ 6.700 03/01/06 540,500
------------
1,011,027
------------
MASSACHUSETTS -- 2.9%
500,000 New England Educ. Loan Mkt. Corp. Rev., Ser. 1992B ....................... 6.600 09/01/02 540,490
500,000 New England Educ. Loan Mkt. Corp. Rev., Ser. 1992A ....................... 6.500 09/01/02 538,490
450,000 Massachusetts St. Indust. Fin. Agy. Rev., Ser. 1997 (Hudner Assoc.) ...... 5.000 01/01/08 468,868
------------
1,547,848
------------
MICHIGAN -- 3.0%
1,000,000 Michigan St. Bldg. Auth. Rev., Ser. II ................................... 6.400 10/01/04 1,085,110
475,000 Battle Creek, MI, EDR (Kellogg Co. Proj.) ................................ 5.125 12/01/09 492,817
------------
1,577,927
------------
MISSISSIPPI -- 1.7%
500,000 Mississippi Higher Educ. Rev., Ser. B .................................... 6.100 07/01/01 520,035
335,000 Jackson, MS, GO .......................................................... 5.250 02/01/10 357,984
------------
878,019
------------
NEBRASKA -- 1.1%
590,000 Nebraska Invest. Fin. Auth. Rev., Ser. 1989
(Foundation for Educ. Fund), Escrowed to Maturity ........................ 7.000 11/01/09 606,078
------------
NEVADA -- 2.4%
1,000,000 Las Vegas, NV, GO, Sewer Impt., Prerefunded @ 102 ........................ 6.500 04/01/02 1,101,380
185,000 Washoe Co., NV, GO ....................................................... 7.375 07/01/09 192,443
------------
1,293,823
------------
NEW YORK -- 1.0%
500,000 New York Local Govt. Asst. Corp. Rev., Ser. 1991B, Prerefunded @ 102 ..... 7.000 04/01/02 545,505
------------
NORTH CAROLINA -- 4.3%
1,065,000 Durham, NC, COP, Prerefunded @ 102 ....................................... 6.375 12/01/01 1,165,291
1,000,000 Winston-Salem, NC, Water & Sewer Sys. Rev ................................ 5.750 06/01/08 1,124,620
------------
2,289,911
------------
44
<PAGE>
TAX-FREE INTERMEDIATE TERM FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Municipal Bonds -- 102.8% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
OHIO -- 31.1%
$ 500,000 Hamilton Co., OH, Hosp. Fac. Rev. (Bethesda Hosp.) ....................... 7.000% 07/01/99 $ 508,625
700,000 Franklin Co., OH, Dev. & Ref. Rev., Ser. 1993 (American Chemical Soc.) ... 5.500 04/01/00 716,072
500,000 Franklin Co., OH, Rev. (Online Computer Library Ctr.) .................... 5.500 04/15/00 509,670
625,000 Fairfield, OH, IDR ARPB (Skyline Chili, Inc.) ............................ 5.000 09/01/00 626,294
270,000 Warren Co., OH, Hosp. Fac. Rev. (Otterbein Home) ......................... 7.000 07/01/03 295,812
1,020,000 Ohio St. EDR Ohio Enterprise Bond Fd. (Smith Steelite Proj.) ............. 5.600 12/01/03 1,084,760
500,000 Hamilton Co., OH, Hosp. Fac. Rev. (Episcopal Retirement Home) ............ 6.600 01/01/04 538,935
335,000 Ohio St. EDR Ohio Enterprise Bond Fd. (Cheryl & Co.) ..................... 5.500 12/01/04 361,267
1,005,000 Franklin Co., OH, Health Care Rev. (First Comm. Village) ................. 6.000 06/01/06 1,075,471
530,000 Toledo, OH, GO ........................................................... 6.000 12/01/06 596,785
840,000 Kent State University General Receipts Rev ............................... 6.000 05/01/07 948,671
710,000 Hamilton Co., OH, Health Care Fac. (Twin Towers) ......................... 5.750 10/01/07 776,505
500,000 Ohio St. IDR, Ser. 1997 (Bomaine Corporation Proj.) ...................... 5.500 11/01/07 511,540
749,067 Columbus, OH, Special Assessment GO ...................................... 5.050 04/15/08 771,464
800,000 West Clermont, OH, LSD GO ................................................ 6.150 12/01/08 892,872
930,000 Hamilton Co., OH, Health Care Fac. (Twin Towers) ......................... 5.250 10/01/10 972,315
1,000,000 Franklin Co., OH, Rev. (Online Computer Library Ctr.) .................... 4.650 10/01/11 1,006,270
875,000 Miami University, OH, General Receipts ................................... 4.400 12/01/11 869,435
500,000 Jefferson Co., OH, County Jail Construction GO ........................... 4.900 12/01/11 522,155
1,000,000 Franklin Co., OH, Rev. (Online Computer Library Ctr.) .................... 4.700 10/01/12 1,001,490
520,000 Sycamore, OH, Comm. City School Dist. COP ................................ 4.700 12/01/12 520,676
1,365,000 Toledo, OH, GO ........................................................... 5.000 12/01/13 1,423,559
------------
16,530,643
------------
PENNSYLVANIA -- 2.1%
500,000 Pennsylvania St., IDR, Ser. A, Prerefunded @ 102 ......................... 7.000 07/01/01 549,445
500,000 Pennsylvania St., Higher Educ. Fac. Auth. Rev., Ser. A
(Univ. of Pennsylvania Health Serv.) ..................................... 6.000 01/01/06 555,260
------------
1,104,705
------------
SOUTH CAROLINA -- 1.5%
725,000 Richland-Lexington, SC, Airport Dist. Rev., Ser. 1995 (Columbia Metro.) .. 6.000 01/01/08 789,576
------------
TENNESSEE -- 7.1%
525,000 Southeast, TN, Tax-Exempt Mtg. Trust ARPB, Ser. 1990 ..................... 7.250 04/01/03 585,821
500,000 Nashville, TN, Metro. Airport Rev., Ser. C ............................... 6.625 07/01/07 542,615
500,000 Greater Dickson, TN, Gas Sys. & Impt. Rev., Ser. A ....................... 4.500 01/01/11 497,710
1,000,000 Nashville & Davidson Co., TN, Heatlh & Educ. Fac. Rev.,
Ser. A (Vanderbilt Univ.) ................................................ 5.000 10/01/11 1,038,980
1,035,000 Johnson City, TN, Health & Educ. Fac. Rev. (Medical Center Hosp.) ........ 5.500 07/01/13 1,123,058
------------
3,788,184
------------
45
<PAGE>
TAX-FREE INTERMEDIATE TERM FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Municipal Bonds -- 102.8% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
TEXAS -- 7.6%
$ 500,000 Houston, TX, Sr. Lien Rev., Ser. A
(Hotel Tax & Parking Fac.), Prerefunded @ 100 ............................ 7.000% 07/01/01 $ 540,300
1,000,000 Texas National Research Lab. Fin. Corp. Lease Rev., Prerefunded @ 102 .... 6.850 12/01/01 1,107,210
500,000 N. Texas Higher Educ. Student Loan Rev., Ser. 1991A ...................... 6.875 04/01/02 525,760
50,000 N. Central, TX, Health Fac. Rev. (Baylor Health Care),
Indexed INFLOS, Prerefunded @ 102 ........................................ 7.470 05/15/02 55,512
450,000 N. Central, TX, Health Fac. Rev. (Baylor Health Care), Indexed INFLOS .... 7.470 05/15/08 494,833
267,543 Midland, TX, HFC Rev., Ser. A-2 .......................................... 8.450 12/01/11 292,588
10,000 San Antonio, TX, Elec. & Gas Rev ......................................... 5.000 02/01/12 10,547
990,000 San Antonio, TX, Elec. & Gas Rev ......................................... 5.000 02/01/12 1,011,810
------------
4,038,560
------------
WISCONSIN -- 0.8%
430,000 Wisconsin St. Health & Educ. Fac. Auth. Rev. (Agnesian Healthcare, Inc.) . 4.900 07/01/11 439,378
- ------------ ------------
$ 51,266,610 TOTAL MUNICIPAL BONDS-- 102.8%
============ (Amortized Cost $52,161,440) ............................................. $ 54,624,709
LIABILITIES IN EXCESS OF OTHER ASSETS-- (2.8)% ........................... (1,481,897)
------------
NET ASSETS-- 100.0% ...................................................... $ 53,142,812
============
See accompanying notes to financial statements and notes to portfolios of
investments.
46
<PAGE>
OHIO INSURED TAX-FREE FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998 (Unaudited)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Fixed Rate Revenue & General Obligation Bonds -- 101.8% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 200,000 Montgomery Co., OH, Hosp. Rev. (Sisters of Charity), Prerefunded @ 102 ... 6.625% 05/15/01 $ 216,362
30,000 Clermont Co., OH, Hosp. Fac. Rev., Ser. A
(Mercy Health Sys.), Prerefunded @ 100 ................................... 7.500 09/01/01 32,939
440,000 Ohio HFA SFM Rev., Ser. D ................................................ 7.000 09/01/01 465,533
460,000 Westerville, Minerva Park & Blendon, OH, Joint Hosp. Dist. Rev ...........
(St. Ann's), Prerefunded @ 102 ........................................... 7.100 09/15/01 509,422
1,000,000 Clermont Co., OH, Hosp. Fac. Rev. (Mercy Health Sys.), Prerefunded @ 102 . 6.733 09/25/01 1,093,070
850,000 Alliance, OH, Waterworks Sys. Rev., Prerefunded @ 102 .................... 6.650 10/15/01 934,014
500,000 Clermont Co., OH, Sewer Sys. Rev., Ser. 1991, Prerefunded @ 102 .......... 7.100 12/01/01 557,270
461,000 Cleveland, OH, Waterworks Impt. Rev., Ser. 1992B
(First Mtg.), Prerefunded @ 102 .......................................... 6.500 01/01/02 506,565
1,000,000 Kent St. Univ. General Receipts Rev., Prerefunded @ 102 .................. 6.500 05/01/02 1,105,250
500,000 Franklin Co., OH, Hosp. Rev., Ser. 1991 (Mt. Carmel), Prerefunded @ 102 .. 6.750 06/01/02 557,035
500,000 Mahoning Co., OH, Hosp. Impt. Rev. (YHA, Inc.), Prerefunded @ 100 ........ 7.000 10/15/02 539,450
675,000 Reynoldsburg, OH, CSD GO, Prerefunded @102 ............................... 6.550 12/01/02 756,473
142,000 Ohio St. Bldg. Auth. Rev. (Columbus St. Proj.), Prerefunded @ 100 ........ 10.125 04/01/03 170,184
33,000 Ohio St. Bldg. Auth. Rev. (Frank Lausch Proj.), Prerefunded @ 100 ........ 10.125 04/01/03 39,545
230,000 Summit Co., OH, GO, Ser. A, Prerefunded @ 100 ............................ 6.900 08/01/03 259,826
290,000 Alliance, OH, CSD GO ..................................................... 6.900 12/01/06 320,395
500,000 Mansfield, OH, Hosp. Impt. Rev. (Mansfield General) ...................... 6.700 12/01/09 546,170
250,000 Ohio St. Water Dev. Auth. & Impt. Rev., Ser. I, Escrowed to Maturity ..... 7.000 12/01/09 296,555
490,000 Ohio Capital Corp. MFH Rev., Ser. 1990A .................................. 7.500 01/01/10 513,834
500,000 Hamilton, OH, Water Sys. Mtg. Rev., Ser. 1991A ........................... 6.400 10/15/10 542,005
500,000 Butler Co., OH, Hosp. Fac. Rev. (Middletown Regional Hosp.) .............. 6.750 11/15/10 546,900
1,000,000 Canton, OH, Waterworks Sys. GO, Ser. 1995 ................................ 5.750 12/01/10 1,105,320
39,000 Cleveland, OH, Waterworks Impt Rev., Ser. F (First Mtg.) ................. 6.500 01/01/11 42,377
255,000 Cuyahoga Co., OH, Hosp. Rev. (University Hosp.), Escrowed to Maturity .... 9.000 06/01/11 332,158
500,000 Greene Co., OH, Water Sys. Rev ........................................... 6.850 12/01/11 548,975
365,000 Bexley, OH, CSD GO ....................................................... 7.125 12/01/11 461,236
600,000 Westerville, OH, Water Sys. Impt. GO ..................................... 6.450 12/01/11 663,054
530,000 Urbana, OH, Wastewater Impt. GO .......................................... 7.050 12/01/11 597,405
500,000 Cleveland, OH, GO, Ser. A ................................................ 6.375 07/01/12 552,500
255,000 Summit Co., OH, GO, Ser. A ............................................... 6.900 08/01/12 278,304
500,000 Worthington, OH, CSD GO .................................................. 6.375 12/01/12 545,680
500,000 Strongsville, OH, CSD GO ................................................. 5.375 12/01/12 546,005
500,000 Summit Co., OH, Various Purpose GO ....................................... 6.625 12/01/12 550,810
95,000 Ohio St. Higher Educ. Fac. Comm. Rev ..................................... 7.250 12/01/12 103,607
1,095,000 West Clermont, OH, LSD GO ................................................ 6.900 12/01/12 1,282,344
500,000 Brunswick, OH, CSD GO .................................................... 6.900 12/01/12 549,800
1,000,000 Lorain Co., OH, Hosp. Rev. (Catholic Health Care Partners) ............... 5.625 09/01/14 1,079,710
500,000 Ohio St. Bldg. Auth Rev., Ser. 1994A (Juvenile Correctional Bldg.) ....... 6.600 10/01/14 568,705
460,000 Bedford Heights, OH, GO .................................................. 6.500 12/01/14 522,146
290,000 Garfield Heights, OH, Various Purpose GO ................................. 6.300 12/01/14 326,984
530,000 Ottawa Co., OH, GO ....................................................... 5.750 12/01/14 578,129
1,000,000 Portage Co., OH, GO ...................................................... 6.200 12/01/14 1,119,530
290,000 Northwest, OH, LSD GO .................................................... 7.050 12/01/14 320,241
250,000 Franklin Co., OH, IDR (1st Comm. Village Healthcare),
Crossover Prerefunded @ 102 .............................................. 10.125 08/01/15 291,460
1,000,000 Clermont Co., OH, Hosp. Fac. Rev. (Mercy Health Sys.) .................... 5.875 09/01/15 1,067,060
600,000 Toledo-Lucas Co., OH, Convention Ctr. Rev ................................ 5.700 10/01/15 652,734
400,000 Warren, OH, Waterworks Rev ............................................... 5.500 11/01/15 435,544
1,700,000 Massillon, OH, GO ........................................................ 6.625 12/01/15 1,958,689
500,000 Ohio St. Higher Educ. Fac. Rev. (Univ. of Dayton) ........................ 6.750 12/01/15 557,780
47
<PAGE>
OHIO INSURED TAX-FREE FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Fixed Rate Revenue & General Obligation Bonds -- 101.8% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 500,000 Delaware, OH, CSD GO ..................................................... 5.750% 12/01/15 $ 538,010
1,000,000 Buckeye Valley, OH, LSD GO ............................................... 6.850 12/01/15 1,248,520
750,000 Columbus-Polaris Hsg. Corp. Ohio Mtg. Rev., Prerefunded @ 100 ............ 7.400 01/01/16 875,160
500,000 Cleveland, OH, Waterworks Impt. Rev., Ser. F (First Mtg.) ................ 6.250 01/01/16 541,275
500,000 Ohio St. Air Quality Dev. Rev., Ser. A (Ohio Edison) ..................... 7.450 03/01/16 530,545
826,000 Ohio HFA SFM Rev., Ser. 1991D ............................................ 7.050 09/01/16 872,834
271,000 Ohio HFA SFM Rev., Ser. 1990F ............................................ 7.600 09/01/16 285,355
500,000 Celina, OH, Wastewater Sys. Mtg. Rev ..................................... 6.550 11/01/16 539,215
1,000,000 Cleveland, OH, Public Power Sys. Rev., Ser. 1 ............................ 7.000 11/15/16 1,178,510
750,000 Montgomery Co., OH, Hosp. Rev. (Miami Valley Hosp.) ...................... 6.250 11/15/16 821,190
590,000 Garfield Heights, OH, Various Purpose GO ................................. 7.050 12/01/16 636,055
1,000,000 Greater Cleveland, OH, Regional Transit Auth. GO ......................... 5.650 12/01/16 1,070,380
815,000 Butler Co., OH, GO ....................................................... 5.750 12/01/16 883,436
1,000,000 Greater Cleveland, OH, Regional Trans Auth. GO ........................... 4.750 12/01/16 987,020
1,260,000 Cleveland, OH, Airport Sys. Rev., Ser. C ................................. 5.125 01/01/17 1,281,962
800,000 Ohio St. Bldg. Auth. Rev. (Adult Correctional Bldg.) ..................... 5.600 04/01/17 851,224
750,000 Butler Co., OH, Transportation Impt. Dist., Ser. A ....................... 5.125 04/01/17 763,103
1,000,000 Lorain Co., OH, Hosp. Rev ................................................ 5.625 09/01/17 1,066,710
500,000 Toledo, OH, Sewer Sys. Rev ............................................... 6.350 11/15/17 564,715
1,000,000 Mason, OH, CSD GO ........................................................ 5.300 12/01/17 1,045,210
1,000,000 Rocky River, OH, CSD GO, Ser. 1998 ....................................... 5.375 12/01/17 1,068,330
1,000,000 Hamilton Co., OH, Sewer Sys. Impt. Rev., Ser. A .......................... 5.000 12/01/17 1,007,040
1,400,000 Cuyahoga Co., OH, Util. Sys. Impt. Rev. (Medical Center Proj.) ........... 5.125 02/15/18 1,412,446
1,260,000 Franklin Co., OH, Hosp. Rev. (Holy Cross Health Sys.) .................... 5.000 06/01/18 1,251,596
500,000 Ohio St. Air Quality Dev. Rev., Ser. 1990B (Ohio Edison) ................. 7.100 06/01/18 532,065
1,265,000 Defiance, OH, Waterworks Sys. GO ......................................... 5.650 12/01/18 1,364,644
1,000,000 Hamilton Co., OH, Sales Tax Rev. (Football Stadium Proj.) ................ 5.000 12/01/18 996,330
1,000,000 S. Euclid-Lyndhurst, OH, CSD GO, Ser. 1996 ............................... 6.400 12/01/18 1,150,310
500,000 Seneca Co., OH, GO (Jail Fac.) ........................................... 6.500 12/01/18 560,230
500,000 Newark, OH, Water Sys. Impt. Rev ......................................... 6.000 12/01/18 557,440
1,000,000 Little Miami, OH, LSD GO ................................................. 5.000 12/01/18 1,000,040
2,650,000 Westerville, OH, GO ...................................................... 4.500 12/01/18 2,513,154
500,000 Crawford Co., OH, GO ..................................................... 6.750 12/01/19 574,035
1,405,000 Akron OH, GO ............................................................. 4.750 12/01/19 1,361,473
1,000,000 Butler Co., OH, Sales Tax Rev ............................................ 5.000 12/15/19 996,120
360,000 Cuyahoga Co., OH, Hosp. Rev. (University Hosp.) .......................... 6.250 01/15/20 388,897
720,000 University of Toledo, OH, Rev ............................................ 4.750 06/01/20 692,806
1,000,000 Alliance, OH, Waterworks Sys. Rev ........................................ 5.000 11/15/20 994,680
1,210,000 Greene Co., OH, Sewer Sys. Rev ........................................... 5.125 12/01/20 1,219,293
1,000,000 Ohio St. Air Quality Dev. Rev., Ser. 1985A (Columbus Southern Power) ..... 6.375 12/01/20 1,094,450
15,000 Puerto Rico, HFC SFM Rev., Ser. A ........................................ 7.800 10/15/21 15,269
2,000,000 Hamilton Co., OH (Children's Hosp.) ...................................... 5.000 05/15/23 1,969,420
1,000,000 Washington Co., OH, Hosp. Rev ............................................ 4.500 09/01/23 914,950
1,000,000 Springboro OH, Water System Rev .......................................... 4.750 12/01/23 956,330
1,000,000 Ohio St. Air Quality Dev. Rev. (Penn Power) .............................. 6.450 05/01/27 1,091,660
- ------------ ------------
$ 65,902,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- ------------ (Amortized Cost $65,609,881) ............................................. $ 70,410,521
------------
48
<PAGE>
OHIO INSURED TAX-FREE FUND (Continued)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Floating & Variable Rate Demand Notes -- 1.0% Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 680,000 Marion Co., OH, Hosp. Impt., Rev., Ser. 1992 (Pooled Lease Project) ...... 4.050% 01/07/99 $ 680,000
- ------------ ------------
TOTAL FLOATING & VARIABLE RATE DEMAND NOTES
(Amortized Cost $680,000)
$ 66,582,000 TOTAL INVESTMENTS AT VALUE-- 102.8%
============ (Amortized Cost $66,289,881) ............................................. $ 71,090,521
LIABILITIES IN EXCESS OF OTHER ASSETS-- (2.8)% ........................... (1,900,863)
------------
NET ASSETS-- 100.0% ...................................................... $ 69,189,658
============
See accompanying notes to financial statements and notes to portfolios of
investments.
49
<PAGE>
KENTUCKY TAX-FREE FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998 (Unaudited)
===============================================================================================================================
Principal Coupon Maturity Market
Amount Fixed Rate Revenue & General Obligation Bonds -- 98.2 % Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------------
$ 45,000 Jefferson Co., KY, Capital Proj. Corp. Rev., Ser. A ...................... 0.000% 08/15/99 $ 43,779
200,000 Owensboro, KY, Electric Light & Power Rev., Prerefunded @ 102 ............ 10.250 01/01/00 217,696
250,000 Kentucky Higher Educ. Student Loan Corp. Rev ............................. 7.100 12/01/01 267,412
200,000 Mt. Sterling, KY, Lease Rev., Kentucky League of Cities .................. 5.625 03/01/03 212,246
555,000 Kentucky St. Turnpike Auth. Resource Recovery Road Rev.,
Escrowed to Maturity ..................................................... 6.125 07/01/07 601,797
450,000 Ashland, KY, PCR (Ashland Oil, Inc.) ..................................... 7.375 07/01/09 473,441
275,000 Kentucky St. Turnpike Auth. Resource Recovery Road Rev., Ser. A .......... 6.000 07/01/09 275,622
370,000 Kentucky St. EDR, Ser. A (South Central Nursing) ......................... 6.000 07/01/11 409,535
200,000 Univ. of Louisville, KY, Rev., Ser. H .................................... 5.875 05/01/12 215,048
400,000 Kentucky St. EDA Hosp. Sys. Rfdg. and Impt. Rev ..........................
(Appalachian Reg. Healthcare) ............................................ 5.800 10/01/12 412,808
305,000 Fern Creek, KY, Fire Protection Dist. Hldg. Co. Rev. (Fire Station No. 2) 5.750 01/15/14 317,322
350,000 Richmond, KY, Water, Gas & Sewer Rev., Ser. A ............................ 5.000 07/01/15 355,667
295,000 Barren Co., KY, School Dist. Fin. Rev .................................... 4.750 12/01/16 285,681
355,000 Fayette Co., KY, School Dist. Fin. Rev ................................... 4.625 08/01/18 340,367
350,000 Kentucky St. EDA, Ser. 1998A (Catholic Health) ........................... 5.000 12/01/18 344,351
200,000 Kentucky Area Dev. Dist. Fin. Trust Lease Prog. Rev. (Calloway Fire) ..... 5.600 12/01/18 203,422
350,000 Lexington-Fayette Co., KY, Proj. Rev .....................................
(University of Kentucky Alumni Assn., Inc.) .............................. 5.000 11/01/20 347,221
260,000 Greater Kentucky Hsg Assistance Corp. Mtg. Rev.,
Ser. A (FHA, Osage, Sec .8) .............................................. 5.350 07/01/22 261,284
270,000 Greater Kentucky Hsg Assistance Corp. Mtg. Rev., Ser. A .................. 6.250 07/01/22 276,250
350,000 Kenton Co., KY, Pub. Properties Corp. Rev., Ser. A ....................... 5.000 03/01/23 341,817
400,000 Kentucky St. EDR Fin. Auth. Health Care Fac. Rev.,
Ser.1998 (Christian Church Homes) ........................................ 5.375 11/15/23 399,700
300,000 Wilder, KY, Public Proj. GO .............................................. 4.750 12/01/23 292,332
250,000 Louisville & Jefferson Co., KY, Regional Airport Auth. Sys. Rev., Ser. A . 5.000 07/01/25 242,852
- ------------ ------------
$ 6,980,000 TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS
- ------------ (Amortized Cost $6,989,045) .............................................. $ 7,137,650
------------
$ 6,980,000 TOTAL INVESTMENTS AT VALUE-- 98.2%
============ (Amortized Cost $6,989,045) .............................................. $ 7,137,650
OTHER ASSETS IN EXCESS OF LIABILITIES-- 1.8% ............................. 130,093
------------
NET ASSETS-- 100.0% ...................................................... $ 7,267,743
============
</TABLE>
See accompanying notes to financial statements and notes to portfolios of
investments.
50
<PAGE>
NOTES TO PORTFOLIOS OF INVESTMENTS
December 31, 1998 (Unaudited)
================================================================================
Variable and adjustable rate put bonds earn interest at a coupon rate which
fluctuates at specified intervals, usually daily, monthly or semi-annually. The
rates shown in the Portfolios of Investments are the coupon rates in effect at
December 31, 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>
51
<PAGE>
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.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> COUNTRYWIDE TAX FREE TRUST
<SERIES>
<NUMBER> 1
<NAME> TAX-FREE MONEY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 28,746,336
<INVESTMENTS-AT-VALUE> 28,746,336
<RECEIVABLES> 342,633
<ASSETS-OTHER> 344,600
<OTHER-ITEMS-ASSETS> 15,444
<TOTAL-ASSETS> 29,449,013
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 15,735
<TOTAL-LIABILITIES> 15,735
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29,433,911
<SHARES-COMMON-STOCK> 29,444,354
<SHARES-COMMON-PRIOR> 37,394,922
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (633)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 29,433,278
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 563,998
<OTHER-INCOME> 0
<EXPENSES-NET> 134,276
<NET-INVESTMENT-INCOME> 429,722
<REALIZED-GAINS-CURRENT> 403
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 430,125
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 429,722
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 24,486,743
<NUMBER-OF-SHARES-REDEEMED> 32,852,941
<SHARES-REINVESTED> 415,630
<NET-CHANGE-IN-ASSETS> (7,950,165)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,036)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 75,436
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 143,276
<AVERAGE-NET-ASSETS> 29,925,855
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .014
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .014
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .89
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> COUNTRYWIDE TAX FREE TRUST
<SERIES>
<NUMBER> 21
<NAME> TAX-FREE INTERMEDIATE TERM FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 52,161,440
<INVESTMENTS-AT-VALUE> 54,624,709
<RECEIVABLES> 948,810
<ASSETS-OTHER> 2,345
<OTHER-ITEMS-ASSETS> 33,991
<TOTAL-ASSETS> 55,609,855
<PAYABLE-FOR-SECURITIES> 1,998,920
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 468,123
<TOTAL-LIABILITIES> 2,467,043
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 51,239,618
<SHARES-COMMON-STOCK> 4,334,305
<SHARES-COMMON-PRIOR> 4,757,501
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (560,075)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,463,269
<NET-ASSETS> 48,589,672
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,497,707
<OTHER-INCOME> 0
<EXPENSES-NET> 296,201
<NET-INVESTMENT-INCOME> 1,201,506
<REALIZED-GAINS-CURRENT> 436,134
<APPREC-INCREASE-CURRENT> 25,055
<NET-CHANGE-FROM-OPS> 1,662,695
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,113,656
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 533,012
<NUMBER-OF-SHARES-REDEEMED> 1,036,514
<SHARES-REINVESTED> 80,306
<NET-CHANGE-IN-ASSETS> (4,306,759)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (996,209)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 140,374
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 296,201
<AVERAGE-NET-ASSETS> 50,815,540
<PER-SHARE-NAV-BEGIN> 11.12
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> .09
<PER-SHARE-DIVIDEND> .24
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.21
<EXPENSE-RATIO> .99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> COUNTRYWIDE TAX FREE TRUST
<SERIES>
<NUMBER> 22
<NAME> TAX-FREE INTERMEDIATE TERM FUND CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 52,161,440
<INVESTMENTS-AT-VALUE> 54,624,709
<RECEIVABLES> 948,810
<ASSETS-OTHER> 2,345
<OTHER-ITEMS-ASSETS> 33,991
<TOTAL-ASSETS> 55,609,855
<PAYABLE-FOR-SECURITIES> 1,998,920
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 468,123
<TOTAL-LIABILITIES> 2,467,043
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 51,239,618
<SHARES-COMMON-STOCK> 406,059
<SHARES-COMMON-PRIOR> 426,820
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (560,075)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,463,269
<NET-ASSETS> 4,553,140
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,497,707
<OTHER-INCOME> 0
<EXPENSES-NET> 296,201
<NET-INVESTMENT-INCOME> 1,201,506
<REALIZED-GAINS-CURRENT> 436,134
<APPREC-INCREASE-CURRENT> 25,055
<NET-CHANGE-FROM-OPS> 1,662,695
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 87,850
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 88,453
<NUMBER-OF-SHARES-REDEEMED> 116,736
<SHARES-REINVESTED> 7,522
<NET-CHANGE-IN-ASSETS> (193,416)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (996,209)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 140,374
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 296,201
<AVERAGE-NET-ASSETS> 4,855,056
<PER-SHARE-NAV-BEGIN> 11.12
<PER-SHARE-NII> .20
<PER-SHARE-GAIN-APPREC> .09
<PER-SHARE-DIVIDEND> .20
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.21
<EXPENSE-RATIO> 1.74
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> COUNTRYWIDE TAX FREE TRUST
<SERIES>
<NUMBER> 31
<NAME> OHIO INSURED TAX-FREE FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 66,289,881
<INVESTMENTS-AT-VALUE> 71,090,521
<RECEIVABLES> 686,059
<ASSETS-OTHER> 54,899
<OTHER-ITEMS-ASSETS> 36,173
<TOTAL-ASSETS> 71,867,652
<PAYABLE-FOR-SECURITIES> 2,527,305
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 150,689
<TOTAL-LIABILITIES> 2,677,994
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 64,225,076
<SHARES-COMMON-STOCK> 5,266,020
<SHARES-COMMON-PRIOR> 5,599,945
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 163,942
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,800,640
<NET-ASSETS> 64,201,470
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,997,040
<OTHER-INCOME> 0
<EXPENSES-NET> 293,296
<NET-INVESTMENT-INCOME> 1,703,744
<REALIZED-GAINS-CURRENT> 591,530
<APPREC-INCREASE-CURRENT> 119,477
<NET-CHANGE-FROM-OPS> 2,414,751
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,602,118
<DISTRIBUTIONS-OF-GAINS> 1,554,508
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,936,170
<NUMBER-OF-SHARES-REDEEMED> 6,469,112
<SHARES-REINVESTED> 199,017
<NET-CHANGE-IN-ASSETS> (5,087,742)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,241,572
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 182,724
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 293,296
<AVERAGE-NET-ASSETS> 67,385,626
<PER-SHARE-NAV-BEGIN> 12.37
<PER-SHARE-NII> .29
<PER-SHARE-GAIN-APPREC> .11
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<PER-SHARE-NAV-END> 12.19
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> COUNTRYWIDE TAX FREE TRUST
<SERIES>
<NUMBER> 32
<NAME> OHIO INSURED TAX-FREE FUND CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 66,289,881
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<OVERDISTRIBUTION-GAINS> 0
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<EXPENSES-NET> 293,296
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<REALIZED-GAINS-CURRENT> 591,530
<APPREC-INCREASE-CURRENT> 119,477
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<DISTRIBUTIONS-OF-INCOME> 101,626
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<OVERDIST-NET-GAINS-PRIOR> 0
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<INTEREST-EXPENSE> 0
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<PER-SHARE-NAV-BEGIN> 12.37
<PER-SHARE-NII> .25
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<PER-SHARE-NAV-END> 12.19
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
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<SERIES>
<NUMBER> 61
<NAME> OHIO TAX-FREE MONEY FUND RETAIL SHARES
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> DEC-31-1998
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<SHARES-COMMON-PRIOR> 205,302,701
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<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 227,414,536
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,142,025
<OTHER-INCOME> 0
<EXPENSES-NET> 1,128,021
<NET-INVESTMENT-INCOME> 5,014,004
<REALIZED-GAINS-CURRENT> 224
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<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 240,901,813
<NUMBER-OF-SHARES-REDEEMED> 221,837,659
<SHARES-REINVESTED> 3,034,325
<NET-CHANGE-IN-ASSETS> 22,098,520
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 13,524
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 757,817
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,179,680
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<PER-SHARE-NII> .014
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<PER-SHARE-DIVIDEND> .014
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<PER-SHARE-NAV-END> 1.00
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000352667
<NAME> COUNTRYWIDE TAX FREE TRUST
<SERIES>
<NUMBER> 62
<NAME> OHIO TAX-FREE MONEY FUND INSTITUTIONAL SHARES
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 350,470,265
<INVESTMENTS-AT-VALUE> 350,470,265
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<SENIOR-EQUITY> 0
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<OVERDISTRIBUTION-GAINS> 0
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<INTEREST-INCOME> 6,142,025
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<EXPENSES-NET> 1,128,021
<NET-INVESTMENT-INCOME> 5,014,004
<REALIZED-GAINS-CURRENT> 224
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<GROSS-EXPENSE> 1,179,680
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<PER-SHARE-NAV-BEGIN> 1.00
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</TABLE>
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<NAME> CALIFORNIA TAX-FREE MONEY FUND
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