GIT Tax-Free Trust
Arizona Portfolio
Maryland Portfolio
Missouri Portfolio
Virginia Portfolio
National Portfolio
Money Market Portfolio
Annual Report
September 30, 1995/Audited
GIT
GIT Investment Funds
<PAGE>
Management's Discussion of Fund Performance
November 11, 1995
Dear Shareholder:
A national economic slowdown reemerged at the end of 1994, led by
a sudden slide in consumer spending followed by falling home
sales and a ripple down effect on other sectors. This caused
real GDP growth to fall from 5.1% in the fourth quarter of 1994
to just .5% in the second quarter of 1995. This slowdown, along
with an inflation rate that has been inching lower, ignited a
bond market rally that saw the Treasury bond yield fall from a
high yield of 7.88% in September 1994 to a low of 6.50% in
September 1995. The municipal market took part in this rally,
but did not keep pace with the Treasury bond, as improved
prospects for tax reform became a constraint. Looking to the
future, as the diminishing amount of new issuance causes reduced
supply, this should cause the municipal market to perform well in
the coming months.
During the past year, we followed a conservative investment
policy for the GIT Tax-Free Trust portfolios, holding general
obligation and revenue issues weighted according to the
fundamentals of each sector. We intend to continue to follow
this policy. In the near term we are likely to maintain average
maturity in the 15-year to 20-year range as we seek the best
value on the yield curve.
National Portfolio
Unlike recent recessions, the current slowdown has been
remarkably even across regions. The southern and mountain states
experienced the greatest declines in job growth and construction.
Midwestern manufacturing fared better than the other regions that
suffered from lower exports and weakening demand for manufactured
goods. The west and northeast regions experienced slow growth,
but not nearly as severe as their sharp downturns of 1989. Lower
market interest rates and inflation, possibly with a boost from
further easing by the Fed, should stimulate economic growth going
into 1996. The credit trend for the National Portfolio remains
stable with an average rating of AA for the fund. Total return
for the year ended September 30, 1995 was 8.40%.
Arizona Portfolio
In Arizona, most indicators of economic activity remained
positive as the state continues to add jobs despite defense
cutbacks. The majority of new jobs in Arizona appeared in the
service sector and the thriving semiconductor and advanced
electronics industry. Arizona has no general obligation debt,
and the credit trends are generally stable among the municipal
issuers throughout the state. The Arizona portfolio has an
average credit rating of AA and posted a total return of 8.95%
for the year ended September 30, 1995.
Maryland Portfolio
Economic growth in the State of Maryland continues to be under
pressure from the recent recession, but it has an economic base
that is both diverse and balanced, with a lower-than-average
dependence on manufacturing. Cutbacks in defense spending and
federal government jobs have hurt the economy. Most of the job
creation is in the high tech and services sectors. Maryland is
ranked fifth among states in per capita personal
Management's Discussion of Fund Performance (continued)
<PAGE>
income. The credit trends of the municipalities throughout the
state are stable and the general obligation debt of the state is
rated AAA. The average credit rating of the portfolio is AA, and
its total return for the year ended September 30, 1995 was 9.17%.
Missouri Portfolio
Missouri has a broad-based and diversified economy that is
dominated by the service sector. Growth has been slow, but
consistent with national rates. Missouri's manufacturing sector
is led by transportation equipment, machinery, and chemicals.
With McDonnell Douglas Corp. as the largest employer in the
state, some of Missouri's industry has been adversely affected by
cutbacks in defense spending. The city of Branson, on the other
hand, has become a major tourist attraction as a music and
entertainment center.
Missouri ranks about in the middle of the nation when measuring
wealth and resources. The state has long record of responsible
and conservative financial operations, low debt, and a broad and
diverse economy as reflected by the AAA rating of its general
obligation debt. The average credit rating of the Missouri
Portfolio is AA, and the total return for the year ended
September 30, 1995 was 8.87%.
Virginia Portfolio
The Commonwealth of Virginia has a broad and diverse economy
spread over three main regions, each of which depends on a
different economic base. Northern Virginia is part of the
Washington, D.C. metropolitan area, with a high concentration in
the government and service sectors. The Tidewater area is more
related to defense, particularly to the U.S. Navy and
shipbuilding. The western part of the state depends on
manufacturing and agriculture.
Growth in population has been rapid over the past two decades,
and unemployment continues to be well below the national
averages. Defense reductions and cutbacks in U.S. Government
employment, however, will continue as a drag on the
commonwealth's economic progress. Conservative fiscal policies
characteristic of the municipalities in Virginia have maintained
low debt ratios with prudent long-range capital planning.
Virginia's general obligation bonds maintain a AAA credit rating,
and the credit trend is considered stable. The average credit
rating for our Virginia portfolio is AA. The total return of the
fund for the year ended September 30, 1995 was 9.54%.
Money Market Portfolio
The Tax-Free Money Market Portfolio continues to provide a high
degree of liquidity and stability. As of September 30, 1995 the
seven-day yield of the fund was 3.34%, which is the taxable
equivalent of 5.22% to an investor in the 36% federal tax
bracket.
Sincerely,
(signature)
A. Bruce Cleveland
President
<PAGE>
Management's Discussion of Fund Performance (continued)
Comparison of Changes in the Value of a $10,000 Investment and
the Lehman Municipal Bond Index
Depicted herein is a graphic presentation consisting of five charts
comparing the values of a $10,000 investment made to each of the portfolios
against the Lehman Municipal Bond Index. Through the use of line graphs,
the following information is presented:
Value (as of Sept. 30, 1995) of a $10,000 investment made on:
Sept. 30, 1985 in the National Portfolio: $21,263 compared to
$25,120 from the index. Average annual total return: 1 year -
8.40 percent; 5 years - 6.95 percent; 10 years - 7.84 percent.
October 31, 1989 in the Arizona Portfolio: $14,535 compared to
$16,132 from the index. Average annual total return: 1 year - 8.95
percent; 5 years - 7 percent; since inception Oct.13, 1989 - 6.37 percent.
February 28, 1993 in the Maryland Portfolio: $10,886 compared to
$11,458 from the index. Average annual total return: 1 year - 9.17
percent; since inception February 10, 1993 - 3.57 percent.
October 31, 1989 in the Missouri Portfolio: $14,345 compared to $16,132
from the index. Average annual total return: 1 year - 8.87 percent;
five years 6.77 percent; since inception October 12, 1989 - 6.13 percent.
October 31, 1987 in the Virginia Portfolio: $17,399 compared to $19,977
from the index. Average annual total retrun: 1 year - 9.54 percent;
5 years - 7.04 percent; since inception October 13, 1987 - 7.98 percent.
Past performance is not predictive of future performance.
Figures as of September 30, unless otherwise noted.
<PAGE>
Report of Ernst & Young LLP
Independent Auditors
To the Board of Trustees and Shareholders, the Arizona Portfolio,
Maryland Portfolio, Missouri Portfolio, Virginia Portfolio,
National Portfolio (formerly known as the High Yield Portfolio)
and Money Market Portfolio, GIT Tax-Free Trust:
We have audited the accompanying statements of assets and
liabilities, including the portfolios of investments, of the GIT
Tax-Free Trust (comprising, respectively, the Arizona, Maryland,
Missouri, Virginia, National and Money Market Portfolios) as of
September 30, 1995, and the related statements of operations for
the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, the financial
highlights of the Maryland Portfolio for each of the two years in
the period then ended and for the period from inception (February
10, 1993) to September 30, 1993, and the financial highlights of
the Arizona, Missouri, Virginia, National and Money Market
Portfolios for each of the five years in the period then ended.
These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is
to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
securities owned as of September 30, 1995, by correspondence with
the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of each of the respective portfolios
constituting the GIT Tax-Free Trust at September 30, 1995, the
results of their operations for the year then ended, the changes
in their net assets for each of the two years in the period then
ended, and their financial highlights for the periods referred to
above, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
Washington, DC
November 3, 1995
<PAGE>
Arizona Portfolio
Portfolio of Investments - September 30, 1995
Credit Rating* Principal
Moodys S&P Amount Value
LONG-TERM MUNICIPAL BONDS: 95.6% of Net Assets
AIRPORT: 5.0%
Aaa AAA Tucson Airport Authority,
Income Revenue
(MBIA Insured), 5.7%,
6/1/13 $500,000 $497,500
EDUCATION: 4.3%
A nr Arizona Educational Loan
Marketing Corporation,
Student Loan Revenue (AMT),
7%, 3/1/03 400,000 429,000
ELECTRIC: 7.0%
Baa1 A- Puerto Rico Electric Power
Authority, Electric Power
Revenue, 6.375%, 7/1/24 190,000 195,462
Aa AA Salt River Project
Agricultural Improvements
and Power District, Electric
Systems Revenue, 6%, 1/1/16 500,000 505,625
GENERAL OBLIGATION: 30.3%
Aaa AAA Chandler (FGIC Insured), 7%,
7/1/12 300,000 327,000
Aaa AAA Maricopa County School
District (FGIC Insured),
6.25%, 7/1/11 500,000 540,000
Aaa AAA Maricopa County School District
(FGIC Insured), 6.7%, 7/1/11 300,000 331,125
Aaa AAA Navajo County School District,
(CGIC Insured), 6%, 7/1/09 500,000 513,750
Aa AA+ Phoenix, 6%, 7/1/13 500,000 510,625
Aa AA+ Phoenix, 5.3%, 7/1/06 100,000 102,750
#Aaa AA+ Scottsdale, 6.9%, 7/1/07 100,000 112,000
Aa1 AA+ Scottsdale, 5.5%, 7/1/09 200,000 202,000
A1 AA- Tucson, 5.6%, 7/1/16 400,000 393,000
HOSPITAL: 4.7%
Aaa AAA Arizona Health Facilities
Authority, Hospital Revenue
(Samaritan Health Services)
(MBIA Insured), 6.25%,
12/1/06 250,000 265,625
Aaa AAA Arizona Health Facilities
Authority, Hospital Revenue
(Phoenix Baptist Hospital)
(MBIA Insured), 6.25%,
9/1/11 200,000 206,750
HOUSING: 10.2%
nr AAA Phoenix Industrial Development
Authority, Mortgage Revenue
(Chris Ridge) (FHA Insured),
6.75%, 11/1/12 500,000 515,000
nr AAA Pima County Industrial
Development Authority,
Single-Family Mortgage Revenue
(GNMA Collateralized) (AMT),
6.2%, 5/1/27 500,000 510,625
INDUSTRIAL DEVELOPMENT: 3.2%
nr AAA Mohave County Industrial
Development Authority,
Industrial Development Revenue
(Citizens Utilities), 7.05%,
8/1/20 300,000 324,375
LEASING: 3.1%
Aaa AAA Scottsdale Municipal Property
Corporation, Lease Revenue
(FGIC Insured), 6.25%,
11/1/14 300,000 308,250
TRANSPORTATION: 19.1%
Aa AA Arizona State Transportation
Board, Highway Revenue, 6%,
7/1/08 400,000 426,000
Aaa AAA Flagstaff, Street And Highway
User Revenue (FGIC Insured),
5.9%, 7/1/10 500,000 520,000
Baa1 A Puerto Rico Commonwealth Highway
and Transportation Authority,
Highway Revenue, 6.375%,
7/1/08 450,000 475,875
A1 A+ Tucson, Street and Highway User
Revenue, 5.5%, 7/1/09 500,000 487,500
WATER AND SEWER: 8.7%
Aaa AAA Arizona State Wastewater
Manangement Authority, Revenue
(AMBAC Insured), 5.95%,
7/1/12 200,000 203,500
Aaa AAA Chandler, Water and Sewer
Revenue (FGIC Insured), 6.75%,
7/1/06 250,000 271,250
A1 A+ Tucson, Water Revenue (AMBAC
Insured), 5.75%, 7/1/18 400,000 393,000
TOTAL INVESTMENTS (Cost $9,218,605)<F1> $9,567,587
See Notes to Portfolio of Investments.
<PAGE>
Maryland Portfolio
Portfolio of Investments - September 30, 1995
Credit Rating* Principal
Moodys S&P Amount Value
LONG-TERM MUNICIPAL BONDS: 94.8% of Net Assets
EDUCATION: 8.9%
Aa1 AA- Maryland State Health and
Higher Educational Facilities
Authority, University Revenue
(Johns Hopkins University),
7.5%, 7/1/20 $100,000 $108,250
Aaa AAA Saint Mary's College, College
Revenue (MBIA Insured),
5.55%, 9/1/23 100,000 98,750
Aa AA+ University of Maryland,
Auxiliary Facilities and
Tuition Revenue, 5.5%,
4/1/13 50,000 49,438
ELECTRIC: 6.3%
Baa1 A- Puerto Rico Electric Power
Authority, Power Revenue, 6%,
7/1/14 100,000 99,250
Baa1 A- Puerto Rico Electric Power
Authority, Power Revenue,
6.25%, 7/1/17 80,000 81,300
GENERAL OBLIGATION: 14.7%
Aaa AAA Baltimore (AMBAC Insured), 6%,
10/15/04 100,000 108,250
#Aaa AAA Harford County, 5.75%, 9/1/08 25,000 26,969
Aa AA- Harford County, 5.75%, 9/1/08 25,000 25,750
Aa1 AA+ Howard County, 6%, 5/15/13 150,000 153,750
Aaa AAA Ocean City (MBIA Insured), 6.3%,
11/1/09 50,000 55,375
Aa1 AA Washington Suburban Sanitary
District, 5.875%, 6/1/08 50,000 52,563
HOSPITAL: 10.5%
Aaa AAA Maryland State Health and Higher
Educational Facilities Authority,
Hospital Revenue (North Arundel
Hospital) (BIGI Insured), 7.875%,
7/1/21 100,000 111,000
A A Maryland State Health and Higher
Educational Facilities Authority,
Hospital Revenue (Good Samaritan
Hospital), 5.75%, 7/1/19 100,000 94,625
Baa nr Prince George's County Hospital,
Hospital Revenue (Greater
Southeast Healthcare System),
6.2%, 1/1/08 100,000 98,500
HOUSING: 16.0%
nr AAA Anne Arundel County, Mortgage
Revenue (Westwinds Apartments) (FHA),
6%, 12/1/26 50,000 49,688
nr AAA Baltimore County, Mortgage Revenue
(Olde Forge Townhouses) (FHA),
6%, 1/1/10 80,000 79,200
Aa nr Maryland State Community Development
Administration, Multifamily
Housing Revenue (GNMA Collaterized)
(FHA), 5.95%, 5/15/13 80,000 79,300
Aa nr Maryland State Community Development
Administration, Single-Family
Revenue (AMT), 6.2%, 4/1/17 100,000 100,000
nr AAA Prince George's County Housing
Authority, Single-Family Mortgage
Revenue (GNMA/FNMA Collaterized)
(AMT), 6.5%, 12/1/15 150,000 153,562
LEASING: 4.8%
Aa AA- Maryland State Stadium Authority,
Sports Facilities Lease Revenue
(AMT), 7.5%, 12/15/10 125,000 138,594
POLLUTION CONTROL: 8.0%
A2 A Anne Arundel County, Pollution
Control Revenue (Baltimore Gas
and Electric Company), 6%,
4/1/24 100,000 100,500
A1 A Prince George's County, Pollution
Control Revenue (Potomac Electric),
6.375%, 1/15/23 125,000 130,937
PUBLIC FACILITIES: 8.9%
Aaa AAA Baltimore, Convention Center Revenue
(FGIC Insured), 6.1%, 9/1/14 150,000 153,937
Aa AA- Howard County, Special Facilities
Revenue, 5.95%, 2/15/10 100,000 103,375
TRANSPORTATION: 7.4%
Aa3 A-1+ Baltimore, Port Facilities Revenue
(Consolidated Coal Sales),
6.5%, 10/1/11 100,000 107,375
#Aaa AAA Maryland State Department of
Transportation, Revenue, 6.7%,
7/1/98 100,000 105,000
See Notes to Portfolios of Investments.
<PAGE>
Maryland Portfolio
Portfolio of Investments - September 30, 1995 (continued)
Credit Rating* Principal
Moodys S&P Amount Value
UTILITY: 2.0%
A A+ Puerto Rico Telephone Authority,
Telecommunications Revenue, 5.5%,
1/1/22 $60,000 $56,475
WASTE: 3.7%
#Aaa nr Worcester County (Sanitation),
7.5%, 8/15/06 100,000 107,875
WATER: 3.5%
Aaa AAA Baltimore, Water Revenue (MBIA
Insured), 5.5%, 7/1/08 100,000 100,750
TOTAL INVESTMENTS (Cost $2,694,391)<F1> $2,730,338
Missouri Portfolio
Portfolio of Investments - September 30, 1995
LONG-TERM MUNICIPAL BONDS: 94.4% of Net Assets
AIRPORT: 4.5%
Aaa AAA St. Louis, Airport Revenue,
Lambert-St. Louis International
(FGIC Insured) (AMT), 6.125%,
7/1/12 $500,000 $511,875
EDUCATION: 10.0%
A nr Missouri Higher Education Loan
Authority, Student Loan Revenue
(AMT), 5.9%, 2/15/08 500,000 485,625
Aaa AAA Missouri State Health and
Educational Facilities Authority,
University Revenue (St. Louis
University) (AMBAC Insured),
6.5%, 8/1/16 150,000 156,375
Aa nr St. Louis County School District,
Property Tax Revenue, 5.5%,
2/15/12 500,000 498,125
ELECTRIC: 10.6%
nr AAA Puerto Rico Electric Power
Authority, Power Revenue, 8%,
7/1/08 175,000 195,344
Aaa AAA Sikeston, Electric Revenue
(MBIA Insured), 6.25%, 6/1/22 500,000 513,750
nr A University Development Foundation,
Lease Revenue (Missouri Power),
5.75%, 5/1/13 500,000 498,750
GENERAL OBLIGATION: 22.9%
Aa nr Clayton School District, 5.65%,
2/1/14 500,000 498,125
Aaa AAA Farmington School District (CGIC
Insured), 6.35%, 3/1/12 400,000 415,000
Aa nr Jefferson City School District,
6.7%, 3/1/11 200,000 226,500
nr AAA Puerto Rico Commonwealth, 7.75%,
7/1/17 250,000 283,125
Aaa AAA St. Charles County, Francis Howell
School District (FGIC Insured),
6.5%, 3/1/05 250,000 274,375
Aa1 nr St. Louis County, 6.3%, 2/1/11 400,000 418,500
Aa nr St. Louis County School District,
5.5%, 2/15/13 500,000 495,625
HOSPITAL: 12.7%
Aaa AAA Missouri State Health and
Educational Facilities
Authority, Health Facilities
Revenue (SSM Health Care)
(MBIA Insured), 6.25%,
6/1/16 250,000 256,562
Aaa AAA Missouri State Health and
Educational Facilities
Authority, Health
Facilities Revenue (Heartland
Health System) (AMBAC Insured),
6.35%, 11/15/17 500,000 518,125
nr nr Missouri State Health and
Educational Facilities
Authority, Health Facilities
Revenue (Missouri Baptist
Medical Center), 7.625%,
7/1/18 95,000 107,944
nr nr Missouri State Health and
Educational Facilities
Authority, Health Facilities
Revenue (Missouri Baptist
Medical Center), 7.625% ,
7/1/18 45,000 55,294
Aaa AAA Missouri State Health and
Educational Facilities
Authority, Health Facilities
Revenue (Health Midwest)
(MBIA Insured), 6.25%,
2/15/22 500,000 511,250
See Notes to Portfolio of Investments.
<PAGE>
Missouri Portfolio
Portfolio of Investments - September 30, 1995 (continued)
Credit Rating* Principal
Moodys S&P Amount Value
HOUSING: 9.5%
Aa AA Missouri State Board of Public
Buildings, State Office Building
Revenue, 6.4%, 12/1/08 $300,000 $318,375
nr AAA Missouri State Housing Development
Commission, Single-Family
Mortgage Revenue (GNMA Collaterized)
(AMT), 7.75%, 6/1/22 75,000 78,469
nr AAA Missouri State Housing Development
Commission, Single-Family Mortgage
Revenue (GNMA Collaterized) (AMT),
7.375%, 8/1/23 190,000 200,687
nr AAA St. Louis County, Mortgage Revenue
(Certificates of Receipt) (AMT),
5.65%, 2/1/20 500,000 483,750
LEASING: 4.4%
Aaa AAA Kansas City Municipal Assistance
Corporation, Lease Revenue (H.
Roe Bartle) (AMBAC Insured),
6%, 4/15/20 500,000 506,875
TRANSPORTATION: 3.5%
Baa1 A Puerto Rico Commonwealth Highway
Authority, Highway Revenue,
6%, 7/1/20 405,000 400,444
WASTE: 6.2%
Aa nr Missouri State Environmental
Improvement and Energy
Resources Authority, Water
Pollution Control Revenue,
5.4%, 7/1/15 500,000 472,500
A1 AA- St. Louis Industrial Development
Authority, Pollution Control
Revenue (Anheuser Busch
Company), 6.65%, 5/1/16 200,000 228,750
WATER: 10.0%
Aaa AAA Cape Girardeau, Waterworks
Revenue (FGIC Insured),
6.4%, 3/1/12 400,000 418,000
A1 AA Columbia, Water and Electric
Revenue, 6.125%, 10/1/12 400,000 412,500
Aaa AAA Liberty, Water Revenue (MBIA
Insured), 6.3%, 10/1/12 300,000 314,250
TOTAL INVESTMENTS (Cost $10,491,408)<F1> $10,754,869
Virginia Portfolio
Portfolio of Investments - Septmeber 30, 1995
Credit Rating* Principal
Moodys S&P Amount Value
LONG-TERM MUNICIPAL BONDS: 97.7% of Net Assets
AIRPORT: 3.1%
Aaa AAA Metropolitan Washington D.C. Airports
Authority, Airport Revenue (MBIA
Insured) (AMT), 6.625%,
10/1/12 $500,000 $521,875
Aaa AAA Metropolitan Washington D.C.
Airports Authority, Airport
Revenue (FGIC Insured) (AMT),
7%, 10/1/18 500,000 540,625
EDUCATION: 14.3%
A1 nr Loudoun County Industrial
Development Authority,
Facilities Revenue (George
Washington University),
6.25%, 5/15/22 500,000 507,500
nr BBB- Virginia College Building
Authority, Facilities
Revenue (Marymount University),
7%, 7/1/22 350,000 365,750
Aa AA Virginia College Building
Authority, Facilities Revenue
(Washington and Lee University),
5.75%, 1/1/14 605,000 608,781
Aa AA Virginia College Building Authority,
Facilities Revenue (Washington
and Lee University), 5.8%,
1/1/24 500,000 501,250
Aa AA Virginia State Public School
Authority, Revenue, 6.25%,
8/1/10 500,000 526,875
Aa AA Virginia State Public School
Authority, Revenue, 6.2%,
8/1/13 500,000 519,375
Aa AA Virginia State Public School
Authority, Revenue, 6.5%,
8/1/15 500,000 533,125
Aa AA Virginia State Public School
Authority, Revenue, 5.625%,
8/1/09 250,000 256,250
Aa AA Virginia State Public School
Authority, Special Obligation
(York County), 5.9%, 7/15/13 500,000 509,375
A1 AA- Virginia State University,
University Revenue, 5.75%,
5/1/15 500,000 495,000
See Notes to Portfolio of Investments.
<PAGE>
Virginia Portfolio
Portfolio of Investments - September 30, 1995 (continued)
Credit Rating* Principal
Moodys S&P Amount Value
ELECTRIC: 4.4%
Aaa AAA Hailifax County Industrial
Development Authority, Power
Revenue (Old Dominion Electric)
(MBIA Insured) (AMT), 6%,
12/1/22 $1,000,000 $1,000,000
Baa1 A- Puerto Rico Electric Power
Authority, Power Revenue, 6%,
7/1/14 500,000 496,250
GENERAL OBLIGATION: 24.2%
Aaa AAA Arlington County (Recreational
Facilities Improvements), 6%,
8/1/12 500,000 521,250
Aaa AAA Fairfax County (Public Improvement),
5.625%, 6/1/13 500,000 499,375
Aa A+ Falls Church (School Improvements),
5.5%, 8/1/13 500,000 488,750
Aaa AAA Franklin County (Capital Improvements)
(FGIC Insured), 6.5%, 7/15/12 300,000 316,875
Aa AA- Hampton (Sewer Improvements), 6%,
1/15/08 500,000 533,750
A A Henry County (Public Improvements),
6%, 7/15/14 500,000 506,875
Aaa AAA Newport News (MBIA Insured),
5.5%, 7/1/10 500,000 505,000
Aa AA Norfolk (Public Improvements),
5.5%, 2/1/10 500,000 500,625
Aaa AAA Norfolk (MBIA Insured), 5.75%,
6/1/13 500,000 501,875
Baa1 A Puerto Rico Commonwealth, 6.3%,
7/1/09 1,000,000 1,060,000
A1 AA Richmond (Public Improvements),
6.25%, 1/15/21 875,000 884,844
Aa AA Virginia Beach (Public
Improvements), 6.2%, 9/1/13 500,000 521,250
Aa AA Virginia Beach (Public
Improvements), 5.85%, 11/1/13 350,000 353,500
Aa AA Winchester (Water Utility
Improvements), 5.5%,
1/15/14 1,000,000 976,250
HOSPITAL: 6.2%
Aaa AAA Danville Industrial Development
Authority, Hospital Revenue
(Danville Regional Medical
Center) (FGIC Insured),
6.375%, 10/1/14 500,000 523,125
Aa AA Norfolk Industrial Development
Authority, Hospital Revenue
(Sentara Hospital), 6.5%,
11/1/13 1,000,000 1,061,250
Aaa AAA Roanoke Industrial Development
Authority, Hospital Revenue
(Roanoke Memorial Hospitals)
(MBIA Insured), 6.125%,
7/1/17 500,000 516,250
HOUSING: 3.5%
Aaa AAA Puerto Rico Housing Finance
Corporation, Single-Family
Mortgage Revenue (GNMA
Collateralized), 7.8%,
10/15/21 150,000 156,938
Aa1 AA+ Virginia State Housing Development
Authority, Mortgage Revenue
(AMT), 6.95%, 1/1/10 1,000,000 1,040,000
INDUSTRIAL DEVELOPMENT: 4.7%
Baa3 BBB- Peninsula Ports Authority, Coal
Terminal Revenue, 7.375%,
6/1/20 1,000,000 1,063,750
A1 A Puerto Rico Industrial, Medical,
& Environmental Revenue
(Pepsico, Inc.),
6.25%, 11/15/13 500,000 533,125
OTHER FACILITIES: 9.8%
nr BBB Fairfax County Park Authority,
Facilities Revenue, 6.625%,
7/15/14 500,000 509,375
nr A- Prince William County Park
Authority, Revenue, 6.875%,
10/15/16 500,000 530,625
A nr Prince William County Park
Authority, Revenue, 7.5%,
7/15/20 450,000 513,562
Aaa AAA Riverside Regional Jail
Authority, Jail Facilities
Revenue (MBIA Insured), 6%,
7/1/25 250,000 249,687
nr A+ Roanoke Valley, Resource
Recovery Revenue, 5.75%,
9/1/12 770,000 746,900
Aaa AAA Virginia State Peninsula Regional
Jail Authority, Jail Facilities
Revenue (MBIA Insured), 5.5%,
10/1/14 250,000 241,563
Aa AA Virginia State Public Building
Authority, Building Revenue,
6.25%, 8/1/12 500,000 523,750
TRANSPORTATION: 12.2%
Aaa AAA Chesapeake Bay Bridge and Tunnel,
Highway Revenue (MBIA Insured),
6.375%, 7/1/22 500,000 511,250
Aaa AAA Richmond Metropolitan Authority,
Expressway Revenue (FGIC
Insured), 6.375%, 7/15/16 1,000,000 1,035,000
Aa AA Virginia State Transportation
Board, Revenue (Route 28),
6%, 4/1/10 1,000,000 1,030,000
Aa AA Virginia State Transportation
Board, Revenue (Route 58),
5.625%, 5/15/13 500,000 490,000
Aaa AAA Washington D.C. Metropolitan
Area Transportation Authority,
Transit Revenue (FGIC Insured),
6%, 7/1/07 1,000,000 1,073,750
See Notes to Portfolio of Investments.
<PAGE>
Virginia Portfolio
Portfolio of Investments - September 30, 1995 (continued)
Credit Rating* Principal
Moodys S&P Amount Value
WASTE: 5.4%
A1 A+ Fairfax County Economic
Development Authority,
Revenue (Ogden Martin
Systems) (AMT),
7.75%, 2/1/11 $500,000 $548,125
A1 AA- Henrico County, Water and Sewer
Revenue, 6.25%, 5/1/13 500,000 510,625
Aaa AAA Loudoun County Sanitation Authority,
Water and Sewer Revenue (FGIC
Insured), 6.25%, 1/1/16 500,000 514,375
Baa3 BBB West Point Industrial Development
Authority, Waste Revenue
(Chesapeake Corporation),
6.25%, 3/1/19 250,000 251,250
WATER: 9.8%
Aa AA- Fairfax County Water Authority,
Water Revenue, 6%, 4/1/22 1,500,000 1,503,750
Aaa AAA Frederick-Winchester Service
Authority, Sewer Revenue
(AMBAC Insured), 5.75%,
10/1/15 1,000,000 993,750
Aaa AAA Norfolk, Water Revenue (MBIA
Insured), 5.9%, 11/1/25 325,000 320,531
Aaa AAA Norfolk, Water Revenue (MBIA
Insured), 5.75%, 11/1/12 500,000 497,500
TOTAL INVESTMENTS (Cost $31,910,362)<F1> $33,042,056
Credit Rating* Principal
Moodys S&P Amount Value
National Portfolio
Portfolio of Investments - September 30, 1995
LONG-TERM MUNICIPAL BONDS: 95.2% of Net Assets
ARIZONA: 4.8%
Aa AA Arizona State Transportation Board,
Highway Revenue, 6%,
7/1/08 $1,000,000 $1,065,000
Aa AA Salt River Agricultural
Improvements and Power District,
Electric Revenue, 6.2%,
1/1/12 500,000 516,875
CALIFORNIA: 3.2%
Aaa AAA San Jose Redevelopment Agency,
Tax Allocation (MBIA Insured),
6%, 8/1/09 1,000,000 1,058,750
DISTRICT OF COLUMBIA: 3.2%
Aaa AAA Metropolitan Washington D.C.
Airports Authority, Airport
Revenue (MBIA Insured) (AMT),
6.625%, 10/1/19 1,000,000 1,040,000
FLORIDA: 1.5%
Aa AA Florida State Board of
Educational Authority,
General Obligation, 5.85%,
6/1/18 500,000 495,000
HAWAII: 5.0%
Aaa AAA Hawaii State Airports Systems
Revenue (FGIC Insured) (AMT),
7%, 7/1/20 1,500,000 1,629,375
ILLINOIS: 1.1%
Aaa AAA Regional Transit Authority,
Revenue (AMBAC Insured),
7.2%, 11/1/20 300,000 346,500
IOWA: 4.9%
Aaa AAA Mason City, Hospital Facilities
Revenue (Sisters of Mercy)
(FSA Insured), 7%, 8/15/14 1,500,000 1,603,125
KANSAS: 1.6%
Aa AA Kansas State Department of
Transportation, Highway
Revenue, 6.125%, 9/1/09 500,000 534,375
LOUISIANA: 4.9%
Aaa AAA Louisiana, General Obligation
(MBIA Insured), 6%, 5/15/15 500,000 509,375
Aaa AAA Louisiana State Energy and Power
Authority, Power Revenue
(Rodemacher Unit Number Two)
(FGIC Insured), 6.75%,
1/1/08 1,000,000 1,082,500
See Notes to Portfolios of Investments.
<PAGE>
National Portfolio
Portfolio of Investments - September 30, 1995 (continued)
Credit Rating* Principal
Moodys S&P Amount Value
MAINE: 1.5%
Aaa AAA Maine State Turnpike Authority,
Turnpike Revenue (MBIA
Insured), 6%, 7/1/18 $500,000 $501,875
MARYLAND: 3.6%
Aa1 AA+ Howard County, General Obligation,
6%, 8/15/19 500,000 506,250
Aa nr Montgomery County, Single-Family
Mortgage Revenue, 6.65%,
7/1/17 500,000 516,250
nr AAA Prince George's County Housing
Authority, Single-Family
Mortgage Revenue (GNMA/FNMA
Collateralized) (AMT), 6.5%,
12/1/15 150,000 153,562
MASSACHUSETTS: 6.7%
A1 A+ Massachusetts Bay Transportation
Authority, Transit Revenue, 7%,
3/1/14 1,000,000 1,152,500
A1 A+ Massachusetts, General
Obligation, 6%, 8/1/14 500,000 507,500
Aa AA- Massachusetts, Revenue (Sewer
Improvements), 6.25%, 2/1/11 500,000 521,875
MICHIGAN: 2.5%
nr AA+ Michigan State Housing
Development Authority,
Single-Family Mortgage
Revenue (AMT), 7.75%,
12/1/19 790,000 827,525
MISSISSIPPI: 3.9%
Aaa AAA Harrison County Wastewater
Management District, Sewer
Revenue (Wastewater
Treatment Facilities) (FGIC
Insured), 8.5%, 2/1/13 500,000 663,125
Aaa AAA Harrison County Wastewater
Management District, Sewer
Revenue (Wastewater Treatment
Facilities) (FGIC Insured),
7.75%, 2/1/14 500,000 616,875
MISSOURI: 1.6%
Aaa AAA Sikeston, Electric Revenue (MBIA
Insured), 6.25%, 6/1/22 500,000 513,750
NEVADA: 1.6%
Aaa AAA Washoe County, Gas and Water
Facilities Revenue (AMBAC
Insured), 6.3%, 12/1/14 500,000 510,000
NEW JERSEY: 1.7%
A A New Jersey State Turnpike
Authority, Highway Revenue,
6.5%, 1/1/16 500,000 540,625
NORTH CAROLINA: 1.5%
Aa AA- Pitt County, Hospital Revenue
(Pitt County Memorial
Hospital), 5.5%, 12/1/15 500,000 477,500
PENNSYLVANIA: 8.2%
Aaa AAA Lehigh County, Hospital Revenue
(Lehigh Valley Hospital)
(MBIA Insured), 7%,
7/1/16 1,000,000 1,132,500
Aaa AAA Pennsylvania State Higher
Educational Facilities
Authority, University
Revenue (Duquesne
University) (MBIA
Insured), 6.75%, 4/1/20 500,000 531,250
Aaa AAA Pennsylvania State Industrial
Development Authority, Economic
Development Revenue (AMBAC
Insured), 6%, 1/1/12 1,000,000 1,015,000
RHODE ISLAND: 1.6%
Aa1 AA Rhode Island State Health and
Higher Educational Facilities,
University Revenue (Brown
University), 6.75%, 9/1/16 500,000 526,250
SOUTH CAROLINA: 3.3%
Aaa AAA Piedmont Municipal Power Agency,
Electric Revenue (FGIC Insured),
6.5%, 1/1/16 1,000,000 1,090,000
TEXAS: 10.4%
Aaa AAA Lower Colorado River Authority,
Electric Revenue (FSA Insured),
6%, 1/1/16 500,000 502,500
Aaa AAA Texas Public Building Authority,
Building Revenue (MBIA Insured),
7.125%, 8/1/11 1,500,000 1,728,750
Aaa AAA United Independent School District,
General Obligation, 7%,
8/15/05 1,000,000 1,157,500
See Notest to Portfolios of Investments.
<PAGE>
National Portfolio
Portfolio of Investments - September 30, 1995 (continued)
Credit Rating* Principal
Moodys S&P Amount Value
VIRGINIA: 7.5%
Aaa AAA Chesapeake Bay Bridge and Tunnel,
Highway Revenue (MBIA Insured)
6.375%, 7/1/22 $475,000 $485,688
nr A- Prince William County Park
Authority, Revenue, 6.875%,
10/15/16 500,000 530,625
A1 AA Richmond, General Obligation
(Public Improvements), 6.25%,
1/15/21 500,000 505,625
Aa AA Virginia Beach, General
Obligation, 6.2%, 9/1/13 500,000 521,250
Aa AA+ Virginia State Housing
Development Authority,
Multifamily Revenue, 6.65%,
11/1/13 400,000 415,500
WASHINGTON: 8.0%
A1 AA- Port Seattle, Revenue (AMBAC
Insured) (AMT), 7.6%, 12/1/09 500,000 564,375
A1 A+ Snohomish County Public Utility
District Number One, Electric
Revenue, 7%, 1/1/16 1,000,000 1,061,250
Aa AA Washington, General Obligation,
6%, 9/1/20 500,000 501,875
Aa AA Washington State Public Power
Supply System, Power Revenue
(Nuclear Project Number
Three), 6.5%, 7/1/18 500,000 507,500
WYOMING: 1.5%
Aaa AAA Wyoming Municipal Power Agency
Authority, Electric Revenue
(MBIA Insured), 6.125%,
1/1/16 500,000 506,250
TOTAL LONG-TERM MUNICIPAL BONDS
(Cost $30,471,658)<F1> $31,173,775
SHORT-TERM MUNICIPAL BONDS: 1.2% of Net Assets
LOUISIANA: 0.9%
Aa3 A-1+ West Feliciana Parish, Pollution
Control Revenue (Gulf States
Utilities) (LOC - Canadian
Imperial Bank), 4.5%,
12/1/15^ 300,000 300,000
MISSOURI: 0.3%
VMIG 1A-1 Kansas City Industrial Development
Authority, Hospital Revenue
(Research Health Services
Systems), 4.5%, 10/15/14^ 100,000 100,000
TOTAL SHORT-TERM MUNICIPAL BONDS (Cost $400,000)<F1> 400,000
TOTAL INVESTMENTS (Cost $30,871,658)<F1> $31,573,775
Money Market Portfolio
Portfolio of Investments - September 30, 1995
Credit Rating* Principal
Moodys S&P Amount Value
SHORT-TERM MUNICIPAL SECURITIES: 98.2% of Net Assets
CALIFORNIA: 7.1%
MIG 1 SP-1+ California School Cash Reserve
Program Authority, Property
Tax Revenue (LOC - Industrial
Bank of Japan), 4.75%,
7/3/96$ 400,000 $402,172
P-1 nr Los Angeles Regional Airports,
Lease Revenue (American Airlines)
(LOC - Wachovia Bank of Atlanta),
4.75%, 12/1/24 ^ 200,000 200,000
ILLINOIS: 1.8%
#Aaa AAA Illinois State Toll Highway
Authority, Highway Revenue,
9.125%, 1/1/96 150,000 154,875
KANSAS: 4.7%
P-1 A-1+ Burlington, Pollution Control
Revenue (Kansas City Power and
Light) (LOC - Duetsche Bank
A.G.), 3.65%, 10/2/95 400,000 400,000
See Notes to Portfolios of Investments.
<PAGE>
Money Market Portfolio
Portfolio of Investments - September 30, 1995 (continued)
Credit Rating* Principal
Moodys S&P Amount Value
LOUISIANA: 9.5%
VMIG1 AAA Louisiana Public Facilities
Authority, Hospital Revenue
(Willis-Knighton Medical Project)
(AMBAC Insured), 4.4%,
9/1/23^ $300,000 $300,000
VMIG1 A-1+ New Orleans Aviation Board,
Airport Revenue (MBIA
Insured), 4.4%, 8/1/16^ 400,000 400,000
Aa3 A-1+ West Feliciana Parish, Pollution
Control Revenue (Gulf States
Utilities) (LOC - Canadian
Imperial Bank), 4.5%,
12/1/15^ 100,000 100,000
MINNESOTA: 9.6%
nr A-1+ St. Paul Housing and Redevelopment
Authority, Cooling Revenue
(Series G) (LOC - Credit Local
de France), 4.3%, 6/1/15^ 400,000 400,000
#Aaa AAA Southern Minnesota Municipal
Power Agency, Power Supply
Revenue (Series C), 7.125%
1/1/96 400,000 411,000
MISSOURI: 4.7%
nr A-1+ Independence Industrial
Development Authority,
Industrial Revenue
(Resthaven Project) (LOC -
Credit Local de France),
4.3%, 2/1/25^ 400,000 400,000
NEBRASKA: 4.7%
VMIG1 AAA Nebraska Higher Education Loan
Program, Student Loan Revenue
(MBIA Insured), 4.35%,
12/1/15^ 400,000 400,000
NEW YORK: 4.7%
VMIG1 AAA Triborough Bridge and Tunnel
Authority, Highway Revenue
(MBIA Insured), 4.4%,
1/1/04^ 400,000 400,000
NORTH CAROLINA: 12.4%
VMIG1 A-1+ North Carolina Medical Care
Commission, Hospital Revenue
(Pooled Equipment Financing
Project) (MBIA Insured),
4.2%, 12/1/25^ 300,000 300,000
VMIG1 nr University of North Carolina,
University Revenue (Kenan
Memorial Stadium) (LOC -
Wachovia Bank and Trust),
4.3%, 11/1/07^ 250,000 250,000
nr A-1+ Winston-Salem, Risk Acceptance
Management Corporation (Certificates
of Participation), 4.35%,
7/1/09^ 500,000 500,000
SOUTH CAROLINA: 4.9%
#Aaa AAA Piedmont Municipal Power Agency,
Electric Revenue (AMBAC Insured),
9.25%, 1/1/96 400,000 417,000
TEXAS: 12.0%
#Aaa AAA Lower Colorado River Authority,
Power Revenue, 9%, 1/1/96 400,000 413,000
VMIG1 A-1+ Port Development Corporation,
Marine Terminal Revenue (Stolt
Terminals) (LOC - Credit Suisse),
4.3%, 1/15/14^ 600,000 600,000
UTAH: 4.7%
VMIG1 A-1+ Salt Lake City, Airport Revenue
(LOC - Credit Suisse) (AMT),
4.45%, 6/1/98^ 400,000 400,000
VIRGINIA: 8.3%
VMIG1 nr Harrisonburg Redevelopment and
Housing Authority, Multifamily
Housing Revenue (Rolling Brook
Village) (LOC - Guardian),
5.1%, 2/1/96 400,000 400,000
VMIG1 nr Henrico County Industrial
Development Authority, Revenue
(Hermitage Project) (LOC -
Nationsbank of Virginia), 4.8%,
5/1/24^ 200,000 200,000
Aaa AAA Virginia State, General Obligation
(Public Facilities), 3.2%,
12/1/95 100,000 99,944
WASHINGTON: 4.1%
nr A-1+ Port Kalama, Port Facilities
Revenue (Conagra) (LOC -
Morgan Guaranty Trust), 4.2%,
1/1/04^ 50,000 50,000
nr A-1+ Washington State Housing Finance
Commission, Multifamily Mortgage
Revenue (LOC - Pacific First
Federal), 4.4%, 7/1/20^ 300,000 300,000
WYOMING: 4.7%
Aaa A-1+ Lincoln County, Pollution Control
Revenue (Exxon Project)
(Series A) (AMT), 4.65%,
07/1/17^ 400,000 400,000
TOTAL INVESTMENTS (Cost $8,298,551)<F1> $8,297,991
See Notes to Portfolio of Investments.
<PAGE>
GIT Tax-Free Trust
Notes to Portfolios of Investments
September 30, 1995
[FN]
<F1>Aggregate cost and net unrealized appreciation (depreciation)
of investments for federal income tax purposes is as follows:
Arizona Maryland Missouri
Portfolio Portfolio Portfolio
Aggregate cost $9,218,605 $2,694,391 $10,491,408
Gross unrealized
appreciation $361,042 $43,659 $322,877
Gross unrealized
depreciation 12,060 7,712 59,416
Net unralized
appreciation
(depreciation $348,982 $35,947 $263,461
Money
Virginia National Market
Portfolio Portfolio Portfolio
Aggregate cost $31,910,362 $30,871,658 $8,298,551
Gross unrealized
appreciation $1,172,985 $833,278 $215
Gross unrealized
depreciation 41,291 131,161 775
Net unralized
appreciation
(depreciation $1,131,694 $702,117 $(560)
* Unaudited
^ Security has a variable coupon rate and is putable before
final maturity. Coupon rate as of September 30, 1995
#Aaa Refunded Bonds
AMBAC American Municipal Bond Assurance Corporation
AMT Subject to Alternative Minimum Tax
BIGI Bond Investors Guaranty Insurance Company
CGIC Capital Guaranty Insurance Company
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Administration
FNMA Federal National Mortgage Association
FSA Federal Security Assistance
GNMA Government National Mortgage Association
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corporation
Moody's Moody's Investors Service, Inc.
nr Not rated
S&P Standard & Poor's Corporation
The Notes to Financial Statements are an integral part of these
statements.
<PAGE>
Statements of Assets and Liabilities
September 30, 1995
Arizona Maryland Missouri
Portfolio Portfolio Portfolio
ASSETS
Investments, at cost $9,218,605 $2,694,391 $10,491,408
Investments, at value
(Note 1) $9,567,587 $2,730,338 $10,754,869
Cash 352,451 130,370 480,665
Receivables
Interest 158,786 46,937 164,530
Share subscriptions
receivable (Note 1) 15,000 -- --
Other Assets -- -- --
Total assets 10,093,824 2,907,645 11,400,064
LIABILITIES
Payables
Investment securities
purchased -- -- --
Dividends 10,725 697 6,395
Capital shares redeemed 59,371 26,813 --
Shares reserved for
subscription (Note 1) 15,000 -- --
Other liabilities 3 14 3
Total liabilities 85,099 27,524 6,398
NET ASSETS (Note 4) $10,008,725 $2,880,121 $11,393,666
CAPITAL SHARES
OUTSTANDING 989,647 295,749 1,124,394
NET ASSET VALUE PER SHARE $10.113 $9.738 $10.133
Money
Virginia National Market
Portfolio Portfolio Portfolio
ASSETS
Investments, at cost $31,910,362 $30,871,658 $8,298,551
Investments, at value
(Note 1) $33,042,056 $31,573,775 $8,297,991
Cash 536,611 1,195,934 208,284
Receivables
Interest 585,460 472,208 62,266
Share subscriptions
receivable (Note 1) -- -- 102,994
Other Assets 195 -- --
Total assets 34,164,322 33,241,917 8,671,535
LIABILITIES
Payables
Investment securities
purchased 322,980 485,407 101,020
Dividends 18,936 13,021 822
Capital shares redeemed 5 9,000 12,420
Shares reserved for
subscription (Note 1 -- -- 102,994
Other liabilities 48 96 35
Total liabilities 341,969 507,524 217,291
NET ASSETS (Note 4) $33,822,353 $32,734,393 $8,454,244
CAPITAL SHARES
OUTSTANDING 3,043,054 3,205,840 8,454,870
NET ASSET VALUE PER SHARE $11.115 $10.211 $1.000
Statements of Operations
For the Year Ended September 30, 1995
Arizona Maryland Missouri
Portfolio Portfolio Portfolio
INVESTMENT INCOME
(Note 1)
Interest income $602,433 $156,979 $639,080
EXPENSES (Notes 3 and 4)
Investment advisory
fee 64,823 18,524 69,391
Custodian fees 3,774 1,033 4,106
Professional fees 7,188 2,177 6,847
Salaries and related
expenses 33,086 9,101 37,509
Securities registration
and blue sky expenses 481 1,695 286
Telephone expense 2,148 592 2,454
Data processing and office
equipment expenses 15,742 8,772 15,718
Office and miscellaneous
expenses 8,500 2,193 8,727
Depreciation and
amortization 1,009 277 1,146
Expenses incurred and
paid by investment
adviser -- (18,524) --
Total expenses 136,751 25,840 146,184
NET INVESTMENT INCOME 465,682 131,139 492,896
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized loss on
investments (270,014) (30,774) (116,168)
Net unrealized
appreciation of
investments 636,688 153,130 537,355
NET GAIN ON INVESTMENTS 366,674 122,356 421,187
TOTAL INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS $832,356 $253,495 $914,083
Money
Virginia National Market
Portfolio Portfolio Portfolio
INVESTMENT INCOME
(Note 1)
Interest income $1,941,393 $1,843,025 $328,774
EXPENSES (Notes 3 and 4)
Investment advisory fee 207,900 202,743 45,081
Custodian fees 9,748 9,942 2,564
Professional fees 16,566 16,597 5,331
Salaries and related
expenses 85,637 87,517 22,520
Securities registration
and blue sky expenses 975 7,365 4,435
Telephone expense 5,560 5,700 1,467
Data processing and
office equipment
expenses 32,727 31,319 7,706
Office and
miscellaneous expenses 19,666 18,957 7,208
Depreciation and
amortization 2,606 2,664 686
Expenses incurred
and paid by investment -- -- (23,967)
Total expenses 381,385 382,804 73,031
NET INVESTMENT INCOME 1,560,008 1,460,221 255,743
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized loss
on investments (335,404) (565,552) --
Net unrealized
appreciation
of investments 1,732,461 1,689,690 2,310
NET GAIN ON INVESTMENTS 1,397,057 1,124,138 2,310
TOTAL INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS $2,957,065 $2,584,359 $258,053
The Notes to Financial Statements are an integral part of these
statements.
<PAGE>
Statements of Changes in Net Assets
For the Years Ended September 30
Arizona Portfolio
1995 1994
INCREASE (DECREASE) IN NET
ASSETS RESULTING
FROM OPERATIONS
Net investment income $465,682 $579,256
Net realized loss on investments (270,014) (240,762)
Net unrealized appreciation
(depreciation) of investments 636,688 (1,248,861)
Total increase (decrease) in net
assets resulting from operations 832,356 (910,367)
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (465,682) (579,256)
From net capital gains -- (551,882)
CAPITAL SHARE TRANSACTIONS
(Note 6) (2,172,806) (1,614,268)
TOTAL DECREASE IN NET ASSETS (1,806,132) (3,655,773)
NET ASSETS
Beginning of period 11,814,857 15,470,630
End of period $10,008,725 $11,814,857
Maryland Portfolio
1995 1994
INCREASE (DECREASE) IN NET
ASSETS RESULTING
FROM OPERATIONS
Net investment income $131,139 $151,708
Net realized loss on investments (30,774) (145,563)
Net unrealized appreciation
(depreciation) of investments 153,130 (240,115)
Total increase (decrease) in net
assets resulting from operations 253,495 (233,970)
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (131,139) (151,708)
From net capital gains -- (5,406)
CAPITAL SHARE TRANSACTIONS
(Note 6) (324,850) 96,826
TOTAL DECREASE IN NET ASSETS (202,494) (294,258)
NET ASSETS
Beginning of period 3,082,615 3,376,873
End of period $2,880,121 $3,082,615
Missouri Portfolio
1995 1994
INCREASE (DECREASE) IN
NET ASSETS RESULTING
FROM OPERATIONS
Net investment income $492,896 $546,716
Net realized loss on) (116,168) (209,620)
Net unrealized appreciation
(depreciation) of investments 537,355 (1,117,560)
Total increase (decrease) in net
assets resulting from operations 914,083 (780,464)
DISTRIBUTIONS TO SHAREHOLDERS
From net investment (492,896) (546,716)
From net capital gains -- (482,349)
CAPITAL SHARE TRANSACTIONS
(Note 6) (517,675) (701,239)
TOTAL DECREASE IN NET ASSETS (96,488) (2,510,768)
NET ASSETS
Beginning of period 11,490,154 14,000,922
End of period $11,393,666 $11,490,154
Virginia Portfolio
1995 1994
INCREASE (DECREASE) IN NET
ASSETS RESULTING
FROM OPERATIONS
Net investment income $1,560,008 $1,696,068
Net realized loss on investments (335,404) (765,109)
Net unrealized appreciation
(depreciation) of investments 1,732,461 (3,383,279)
Total increase (decrease) in
net assets resulting
from operations 2,957,065 (2,452,320)
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (1,560,008) (1,696,068)
From net capital gains -- (2,140,949)
CAPITAL SHARE TRANSACTIONS
(Note 6) (3,124,224) (2,253,071)
TOTAL DECREASE IN NET ASSETS (1,727,167) (8,542,408)
NET ASSETS
Beginning of period 35,549,520 44,091,928
End of period $33,822,353 $35,549,520
National Portfolio
1995 1994
INCREASE (DECREASE) IN
NET ASSETS RESULTING
FROM OPERATIONS
Net investment income $1,460,221 $1,513,647
Net realized loss on investments (565,552) (1,469,332)
Net unrealized appreciation
(depreciation) of investments 1,689,690 (2,561,790)
Total increase (decrease) in net
assets resulting from operations 2,584,359 (2,517,475)
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (1,460,221) (1,513,647)
From net capital gains -- (3,338,545)
CAPITAL SHARE TRANSACTIONS
(Note 6) (2,461,944) (1,040,794)
TOTAL DECREASE IN NET ASSETS (1,337,806) (8,410,461)
NET ASSETS
Beginning of period 34,072,199 42,482,660
End of period $32,734,393 $34,072,199
Money Market Portfolio
1995 1994
INCREASE (DECREASE) IN NET
ASSETS RESULTING
FROM OPERATIONS
Net investment income $255,743 $175,951
Net realized loss on -- --
Net unrealized appreciation
(depreciation) of investments 2,310 494
Total increase (decrease) in
net assets resulting
from operations 258,053 176,445
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (255,638) (175,951)
From net capital gains -- --
CAPITAL SHARE TRANSACTIONS
(Note 6) (464,511) (4,475,527)
TOTAL DECREASE IN NET ASSETS (462,096) (4,475,033)
NET ASSETS
Beginning of period 8,916,340 13,391,373
End of period $8,454,244 $8,916,340
The Notes to Financial Statements are an integral part of these
statements.
Financial Highlights
Selected data for a share outstanding thoughout each year:
Year ended
Sept. 30 1991 1992 1993 1994 1995
Arizona Portfolio
Net asset value
beginning of
period $9.703 $10.187 $10.568 $11.208 $9.706
Net investment
income $0.569 $0.528 $0.490 $0.436 $0.440
Net realized &
unrealized
gains
(losses) on
securities $0.484 $0.434 $0.786 $(1.102) $0.407
Total from
investment
operations $1.053 $0.962 $1.276 $(0.666) $0.847
Distributions
from net
investment
income $(0.569) $(0.528) $(0.490) $(0.436) $(0.440)
Distributions
from capital
gains -- $(0.053) $(0.146) $(0.400) --
Total
distribu-
tions $(0.569) $(0.581) $(0.636) $(0.836) $(0.440)
Net asset
value end
of period $10.187 $10.568 $11.208 $9.706 $10.113
Total return 11.11% 9.74% 12.57% (6.20)% 8.95%
Net assets end
of period
(thousands) $8,061 $11,911 $15,471 $11,815 $10,009
Ratio of
expenses
to average
net assets 0.47% 1.15% 1.23% 1.29% 1.31%
Ratio of net
investment
income to
average net
assets 5.61% 5.14% 4.54% 4.23% 4.48%
Portfolio
turnover 57% 23% 63% 67% 24%
Maryland Portfolio
1993<F1> 1994 1995
Net asset value
beginning of
period $10.000 $10.441 $9.323
Net investment
income $0.274 $0.455 $0.418
Net realized &
unrealized
gains
(losses) on
securities $0.441 $(1.102) $0.415
Total from
investment
operations $0.715 $(0.647) $0.833
Distributions
from net
investment
income $(0.274) $(0.455) $(0.418)
Distributions
from capital
gains -- $(0.016) --
Total
distribu-
tions $(0.274) $(0.471) $(0.418)
Net asset
value end
of period $10.441 $9.323 $9.738
Total return 11.91%<F2> (6.33)% 9.17%
Net assets end
of period
(thousands) $3,377 $3,083 $2,880
Ratio of
expenses
to average
net assets 0.20%<F2> 0.64% 0.87%
Ratio of net
investment
income to
average net
assets 4.72%<F2> 4.60% 4.42%
Portfolio
turnover 35% 78% 9%
Missouri Portfolio
1991 1992 1993 1994 1995
Net asset value
beginning of
period $9.684 $10.117 $10.468 $11.173 $9.728
Net investment
income $0.585 $0.514 $0.494 $0.437 $0.436
Net realized &
unrealized
gains
(losses) on
securities $0.433 $0.377 $0.726 $(1.058) $0.405
Total from
investment
operations $1.018 $0.891 $1.220 $(0.621) $0.841
Distributions
from net
investment
income $(0.585) $(0.514) $(0.494) $(0.437) $(0.436)
Distributions
from capital
gains -- $(0.026) $(0.021) $(0.387) --
Total
distribu-
tions $(0.585) $(0.540) $(0.515) $(0.824) $(0.436)
Net asset
value end
of period $10.117 $10.468 $11.173 $9.728 $10.133
Total return 10.80% 9.06% 11.98% (5.80)% 8.87%
Net assets end
of period
(thousands) $7,227 $11,023 $14,001 $11,490 $11,394
Ratio of
expenses
to average
net assets 0.45% 1.18% 1.23% 1.29% 1.31%
Ratio of net
investment
income to
average net
assets 5.85% 5.05% 4.59% 4.23% 4.43%
Portfolio
turnover 33% 8% 65% 52% 16%
Virginia Portfolio
1991 1992 1993 1994 1995
Net asset value
beginning of
period $10.832 $11.351 $11.621 $12.372 $10.631
Net investment
income $0.609 $0.592 $0.569 $0.479 $0.503
Net realized &
unrealized
gains
(losses) on
securities $0.519 $0.387 $0.871 $(1.146) $0.484
Total from
investment
operations $1.128 $0.979 $1.440 $(0.667) $0.987
Distributions
from net
investment
income $(0.609) $(0.592) $(0.569) $(0.479) $(0.503)
Distributions
from capital
gains -- $(0.117) $(0.120) $(0.595) --
Total
distribu-
tions $(0.609) $(0.709) $(0.689) $(1.074) $(0.503)
Net asset
value end
of period $11.351 $11.621 $12.372 $10.631 $11.115
Total return 10.66% 8.92% 12.85% (5.67)% 9.54%
Net assets end
of period
(thousands) $30,696 $37,421 $44,092 $35,550 $33,822
Ratio of
expenses
to average
net assets 1.18% 1.13% 1.10% 1.18% 1.14%
Ratio of net
investment
income to
average net
assets 5.47% 5.20% 4.80% 4.23% 4.68%
Portfolio
turnover 73% 74% 80% 104% 55%
National Portfolio
1991 1992 1993 1994 1995
Net asset value
beginning of
period $10.364 $10.794 $11.329 $11.910 $9.851
Net investment
income $0.632 $0.605 $0.550 $0.420 $0.446
Net realized &
unrealized
gains
(losses) on
securities $0.430 $0.535 $0.793 $(1.122) $0.360
Total from
investment
operations $1.062 $1.140 $1.343 $(0.702) $0.806
Distributions
from net
investment
income $(0.632) $(0.605) $(0.550) $(0.420) $(0.446)
Distributions
from capital
gains -- -- $(0.212) $(0.937) --
Total
distribu-
tions $(0.632) $(0.605) $(0.762) $(1.357) $(0.446)
Net asset
value end
of period $10.794 $11.329 $11.910 $9.851 $10.211
Total return 10.50% 10.83% 12.44% (6.25)% 8.40%
Net assets end
of period
(thousands) $40,352 $41,273 $42,483 $34,072 $32,734
Ratio of
expenses
to average
net assets 1.24% 1.17% 1.10% 1.23% 1.18%
Ratio of net
investment
income to
average net
assets 5.95% 5.47% 4.83% 3.98% 4.49%
Portfolio
turnover 91% 114% 212% 175% 56%
Money Market Portfolio
1991 1992 1993 1994 1995
Net asset value
beginning of
period $1.000 $1.000 $1.000 $1.000 $1.000
Net investment
income $0.04 $0.03 $0.02 $0.015 $0.028
Net realized &
unrealized
gains
(losses) on
securities -- -- -- -- --
Total from
investment
operations $0.040 $0.030 $0.020 $0.015 $0.028
Distributions
from net
investment
income $(0.040) $(0.030) $(0.020) $(0.015) $(0.028)
Distributions
from capital
gains -- -- -- -- --
Total
distribu-
tions $(0.040) $(0.030) $(0.020) $0.015) $(0.028)
Net asset
value end
of period $1.000 $1.000 $1.000 $1.000 $1.000
Total return 4.13% 2.57% 1.53% 1.56% 2.87%
Net assets end
of period
(thousands) $17,844 $14,861 $13,391 $8,916 $8,454
Ratio of
expenses
to average
net assets 0.81% 0.83% 0.81% 0.81% 0.81%
Ratio of net
investment
income to
average net
assets 4.12% 2.55% 1.52% 1.52% 2.83%
Portfolio
turnover -- -- -- -- --
[FN]
<F1>For the period from February 10, 1993 (inception) to
September 30, 1993
<F2>Annualized
The Notest to Financial Statements are an integral part of these
statements.
<PAGE>
GIT Tax-Free Trust
Notes to Financial Statements
September 30, 1995
1. Summary of Significant Accounting Policies. GIT Tax-Free Trust
(the "Trust") is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 as an open-
end, diversified investment management company. The Trust
maintains six separate portfolios which invest principally in
securities exempt from federal income taxes, commonly known as
"municipal" securities. The Arizona, Maryland, Missouri and
Virginia Portfolios (the "State Portfolios") invest solely in
securities exempt from both federal and state income taxes in
their respective states. The National Portfolio (High Yield
Portfolio prior to February 1, 1993) seeks higher yields and
invests in long-term securities. The Money Market Portfolio
invests in short-term securities and is priced according to the
"penny rounding" method whereby the share price is rounded to the
nearest cent to maintain a stable share price of $1.00. The
State and National Portfolios' price per share fluctuates as the
market value of the respective underlying portfolio of securities
fluctuates.
Securities Valuation: Securities having maturities of 60 days or
less are valued at amortized cost, which approximates market
value. Securities having longer maturities, for which market
quotations are readily available are valued at the mean between
their bid and asked prices. Securities for which market
quotations are not readily available are valued at their fair
value as determined in good faith by the trustees. Investment
transactions are recorded on the trade date. The cost of
investments sold is determined on the identified cost basis for
financial statement and federal income tax purposes.
Investment Income: Interest income, net of amortization of
premium and original issue discount, and other income (if any) is
accrued as earned.
Dividends and Income Tax: Net investment income, determined as
gross investment income less expenses, is declared as a regular
dividend each business day. Declared dividends are distributed
to shareholders or reinvested in additional shares as of the
close of business at the end of each month. For the National and
State Portfolios, realized gains and losses and unrealized
appreciation and depreciation are reflected as changes in net
asset value per share and do not affect regular dividends paid.
Capital gain dividends, reflecting net realized capital gains of
each portfolio (if any) are declared and paid at least once per
year. In accordance with the provisions of Subchapter M of the
Internal Revenue Code applicable to regulated investment
companies, all taxable income of each portfolio (if any) is
distributed to its shareholders, and therefore, no federal income
tax provision is required.
Share Subscriptions: Shares purchased by check or otherwise not
paid for in immediately available funds are accounted for as
share subscriptions receivable and shares reserved for
subscriptions.
2. Investment Advisory Fees and Other Transactions with
Affiliates. The investment adviser to the Trust, Bankers Finance
Investment Management Corp. ("BFIMC"), earns an advisory fee
equal to 0.625% per annum of the average net assets of the State
and National Portfolios and 0.5% per annum of the average net
assets of the Money Market Portfolio; the fees accrue daily and
are payable monthly. For the year ended September 30, 1995, BFIMC
waived $18,524 of such fees for the Maryland Portfolio. In order
to meet the securities registration requirements of certain
states, BFIMC has undertaken to reimburse the Trust by the
amount, if any, by which the total expenses of the Trust (less
certain excepted expenses) exceed the applicable expense
limitation in any state or other jurisdiction in which the Trust
is subject to regulation during the fiscal year. The Trust
believes the current applicable expense limitation is 2.5% per
annum of the average net assets of the Trust up to $30 million,
2% of any amount of such net assets exceeding $30 million but not
exceeding $100 million, and 1.5% per annum of such amount in
excess of $100 million. BFIMC is responsible for the fees and
expenses of trustees who are affiliated with BFIMC, the rent
expense of the Trust's principal executive office premises and
certain promotional expenses. For the year ended September 30,
1995, outside trustee fees were
<PAGE>
Notes to Financial Statements (continued)
$1,100 for the Arizona, Missouri,
Virginia, National and Money Market Portfolios and $500 for the
Maryland Portfolio, respectively. As of September 30, 1995,
certain officers, trustees, companies and individuals affiliated
with the Trust had investments aggregating 0.2%, 0.2% and 1.0% of
the National, Arizona and Money Market Portfolios' shares
outstanding, respectively. As of September 30, 1995, no
outstanding shares of the Maryland, Missouri or Virginia
Portfolios were owned by any officer, trustee, affiliated company
or affiliated individual.
3. Other Expenses. With the exception of certain expenses of
the Trust payable by it directly, all support services are
provided to the Trust under a services agreement between the
Trust and BFIMC, pursuant to which, such services are to be
provided for amounts not exceeding the cost to BFIMC of the
support provided. Common expenses incurred by the Trust are
allocated among the portfolios based on the ratio of net assets
of each portfolio to the combined net assets. For the year
ended September 30, 1995, expenses of $71,928 for the Arizona
Portfolio; $25,840 for the Maryland Portfolio; $76,793 for the
Missouri Portfolio; $173,485 for the Virginia Portfolio; $180,061
for the National Portfolio; and $27,950 for the Money Market
Portfolio have been reimbursed to BFIMC under the Services
Agreement. As of September 30, 1995, expenses of $18,752 for
the Arizona Portfolio; $10,398 for the Maryland Portfolio; and
$10,623 for the Missouri Portfolio have been incurred by BFIMC on
behalf of the portfolios, the billings of which have been
deferred. For the year ended September 30, 1995, BFIMC incurred
expenses of $23,967 on behalf of the Money Market Portfolio, the
billing of which has been waived.
Had BFIMC not waived the billing of advisory fees and/or expenses
for the Arizona Portfolio, Maryland Portfolio, Missouri
Portfolio, and Money Market Portfolio, the ratios of expenses and
net investment income to average net assets would have been:
Ratio of Ratio of
to net
expense investment
Year average income to
ended net average net
Sept. 30 assets assets
Arizona Portfolio 1991 1.20% 4.88
Maryland Portfolio<F3> 1995 1.50% 3.80%
1994 1.34 3.90
1993<F2> 1.74<F1> 3.18<F1>
Missouri Portfolio 1991 1.28% 5.02%
Money Market Portfolio 1995 1.07% 2.56%
1994 1.02 1.31
1993 1.03 1.30
1992 1.02 2.36
1991 1.01 3.91
[FN]
<F1>Annualized
<F2>For the period from February 10, 1993 (inception) to
September 30, 1993
<F3> For the periods ended September 30, 1994 and 1993, ratios
include expenses of which the billing has been deferred.
<PAGE>
Notes to Financial Statements (continued)
4. Net Assets. At September 30, 1995, net assets include the
following:
Arizona Maryland Missouri
Portfolio Portfolio Portfolio
Net paid in capital shares
of beneficial interest $10,244,173 $3,028,240 $11,471,005
Accumulated net
realized losses (584,430) (184,066) (340,800)
Undistributed net
investment income -- -- --
Net unrealized appreciation
(depreciation) of
investments 348,982 35,947 263,461
Total net assets $10,008,725 $2,880,121 $11,393,666
Market
Virginia National Market
Portfolio Portfolio Portfolio
Net paid in capital shares
of beneficial interest $34,149,450 $34,288,780 $8,454,813
Accumulated net
realized losses (1,458,791) (2,256,504) (114)
Undistributed net
investment income -- -- 105
Net unrealized appreciation
(depreciation) of
investments 1,131,694 702,117 (560)
Total net assets $33,822,353 $32,734,393 $8,454,244
5. Investment Transactions. Purchases and sales of securities
other than short-term securities, for the year ended September
30, 1995, were as follows:
Arizona Maryland Missouri
Portfolio Portfolio Portfolio
Purchases $2,384,276 $247,524 $1,715,342
Sales 4,357,948 376,535 2,119,659
Virginia National
Portfolio Portfolio
Purchases $17,809,372 $17,299,675
Sales 19,238,261 19,376,834
As of September 30, 1995 capital loss carryover available which
may offset future capital gains, for federal income tax purposes
was $584,430 for the Arizona Portfolio; $184,066 for the Maryland
Portfolio; $340,800 for the Missouri Portfolio; $1,458,791 for
the Virginia Portfolio; and $2,256,504 for the National
Portfolio. The preceding carryover expires September 30, 2003.
As of September 30, 1995 capital loss carryover available for the
Money Market Portfolio is $114, which expires September 30, 1998.
<PAGE>
Notes to Financial Statements (continued)
6. Capital Share Transactions. An unlimited number of capital
shares, without par value, are authorized. Transactions in
capital shares for the years ended September 30 were as follows:
Arizona Portfolio
1994 1995
In Dollars
Shares sold $1,043,837 $3,038,623
Shares issued in reinvestment
of dividends 325,705 877,776
Total shares issued 1,369,542 3,916,399
Shares redeemed (3,542,348) (5,530,667)
Net increase (decrease) $(2,172,806) $(1,614,268)
In Shares
Shares sold 105,634 289,230
Shares issued in reinvestment
of dividends 33,184 84,476
Total shares issued 138,818 373,706
Shares redeemed (366,427) (536,785)
Net increase (decrease) (227,609) (163,079)
Maryland Portfolio
1994 1995
In Dollars
Shares sold $839,221 $1,952,141
Shares issued in reinvestment
of dividends 122,234 148,732
Total shares issued 961,455 2,100,873
Shares redeemed (1,286,305) (2,004,047)
Net increase (decrease) $(324,850) $96,826
In Shares
Shares sold 89,232 195,700
Shares issued in reinvestment
of dividends 12,957 15,137
Total shares issued 102,189 210,837
Shares redeemed (137,100) (203,611)
Net increase (decrease) (34,911) 7,226
Missouri Portfolio
1994 1995
In Dollars
Shares sold $1,645,931 $2,517,679
Shares issued in reinvestment
of dividends 408,754 874,712
Total shares issued 2,054,685 3,392,391
Shares redeemed (2,572,360) (4,093,630)
Net increase (decrease) $(517,675) $(701,239)
In Shares
Shares sold 166,322 242,656
Shares issued in reinvestment
of dividends 41,558 84,374
Total shares issued 207,880 327,030
Shares redeemed (264,672) (398,901)
Net increase (decrease) (56,792) (71,871)
Virginia Portfolio
1994 1995
In Dollars
Shares sold $4,967,609 $6,960,403
Shares issued in reinvestment
of dividends 1,335,773 3,454,038
Total shares issued 6,303,382 10,414,441
Shares redeemed (9,427,606) (12,667,512)
Net decrease $(3,124,224) $(2,253,071)
In Shares
Shares sold 463,732 606,350
Shares issued in reinvestment
of dividends 124,012 304,237
Total shares issued 587,744 910,587
Shares redeemed (888,537) (1,130,528)
Net decrease (300,793) (219,941)
National Portfolio
1994 1995
In Dollars
Shares sold $3,422,847 $8,477,033
Shares issued in reinvestment
of dividends 1,307,981 4,516,906
Total shares issued 4,730,828 12,993,939
Shares redeemed (7,192,772) (14,034,733)
Net decrease $(2,461,944) $(1,040,794)
In Shares
Shares sold 344,542 803,610
Shares issued in reinvestment
of dividends 131,677 429,466
Total shares issued 476,219 1,233,076
Shares redeemed (729,127) (1,341,342)
Net decrease (252,908) (108,266)
Missouri Portfolio
1994 1995
In Dollars
Shares sold $8,322,074 $8,291,730
Shares issued in reinvestment
of dividends 244,526 167,837
Total shares issued 8,566,600 8,459,567
Shares redeemed (9,031,111) (12,935,094)
Net decrease $(464,511) $(4,475,527)
In Shares
Shares sold 8,322,074 8,291,730
Shares issued in reinvestment
of dividends 244,526 167,837
Total shares issued 8,566,600 8,459,567
Shares redeemed (9,031,111) (12,935,094)
Net decrease (464,511) (4,475,527)
<PAGE>
GIT Tax-Free Trust
Special Tax Information
September 30, 1995
(Unaudited)
Pursuant to Section 852 of the Internal Revenue Code of 1986
$465,682 for the Arizona Portfolio; $131,139 for the Maryland
Portfolio; $492,896 for the Missouri Portfolio; $1,560,008 for
the Virginia Portfolio; $1,460,221 for the National Portfolio;
and $255,638 for the Tax-Free Money Market Portfolio is
designated as tax-exempt dividends.
In January 1996, shareholders of the Tax-Free Trust will receive
Federal income tax information on all distributions paid to their
accounts in calendar year 1995, including any distributions paid
between September 30, 1995 and December 31, 1995.
<PAGE>
This page was left blank intentionally.
<PAGE>
Telephone Numbers
Shareholder Service
Washington, DC area: 703/528-6500
Toll-free nationwide: 800/336-3063
24-Hour ACCESS
Toll-free nationwide: 800/448-4422
The GIT Family of Mutual Funds
GIT Equity Trust
Special Growth Portfolio
Select Growth Portfolio
Equity Income Portfolio
Worldwide Growth Portfolio
GIT Income Trust
Maximum Income Portfolio
Government Portfolio
GIT Tax-Free Trust
Arizona Portfolio
Maryland Portfolio
Missouri Portfolio
Virginia Portfolio
National Portfolio
Money Market Portfolio
Government Investors Trust
For more complete information on any GIT Investment Fund,
including charges and expenses, request a prospectus by
calling the numbers above. Read it carefully before you
invest or send money. This prospectus does not constitute an
offering by the distributor in any jurisdiction in which such
offering may not be lawfully made.
GIT
GIT INVESTMENT FUNDS
1655 Fort Myer Drive
Arlington Virginia 22209
http://www.gitfunds.com
