GIT TAX-FREE TRUST
Arizona Portfolio
Maryland Portfolio
Missouri Portfolio
Virginia Portfolio
National Portfolio
Money Market Portfolio
Semi-Annual Report
March 31, 1995/Unaudited
GIT
GIT INVESTMENT FUNDS
<PAGE>
Letter to Shareholders
May 15, 1995
Dear Shareholder:
A year-long bear market in bonds came to an end in late 1994, as
bonds began a sustained rally coinciding with the Republican
victory in Congress and congressional efforts to seriously
address the problem of chronic federal deficits. In addition, in
early 1995 the Federal Reserve signaled that its interest rate
increases were coming to an end, and that the desired economic
"soft-landing" might be in sight. However, the market's mood was
tempered somewhat by the defeat of the balanced budget amendment
in the U.S. Senate, which appeared to trigger a sharp decline in
the U.S. dollar in the international currency markets, causing
worry that foreigners might reduce their investments in U.S.
markets.
Since September 30, 1994, at the beginning of the six-month
period covered by this report, the yield on benchmark 30-year
U.S. Treasury bonds fell from 7.82% to 7.43% on March 31, 1995.
As of this writing, the 30-year yield has fallen further to
6.94%, as rising bond prices went on to recover a significant
portion of their 1994 losses.
The municipal bond market has outperformed the U.S. Treasury
market during the recent rally, as returns were buoyed by
continued strong demand coupled with a low supply of new tax-
exempt issues. New issue municipal sales in the first quarter of
1995 sank to their lowest levels in five years; state and local
government new issuance was down 46% in the first quarter of
1995, compared to the same period last year. New refunding
issues to take advantage of lower interest rates, which had
soared to a record $34.84 billion in the first quarter of 1993,
shrank to roughly one-tenth that level in the same period this
year.
We are pleased to report that the GIT funds had no exposure to
any of the high profile credit problems which have surfaced in
the municipal bond market, including the well-publicized
bankruptcy of Orange County, California. We have also taken a
very conservative approach in response to the closer-to-home
financial problems of Washington, DC. Despite these market
problems, we feel that municipal bond quality in general is
stable or improving slightly, as the economy improves and prudent
fiscal management becomes increasingly widespread among
municipalities through the lessons learned from the mistakes of
others. Nevertheless, we monitor the credit quality of our
holdings closely and will not sacrifice our credit quality
standards for higher yields.
We intend to continue following the conservative investment
policies that have served us well. With regard to the National
and individual state portfolios, we intend to continue to hold
general obligation and well-backed revenue issues. In the near
term, we expect to continue to maintain average maturities in the
15- to 20-year range since we consider this to be the best value
on the yield curve under current market conditions.
With regard to the Tax-Free Money Market Portfolio, repeated
Federal Reserve Board tightening caused short-term rates to rise
during the six months covered by this report. The fund's seven-
day yield rose from 2.36% on September 30, 1994 to 2.79% on March
31, 1995. The fund continues to provide a high degree of
stability and liquidity, while holding only the highest quality
tax-free instruments. As of this writing the seven-day yield of
the Tax-Free Money Market Portfolio exceeds 3%.
We appreciate your confidence in GIT Investment Funds and
encourage you to look at all 13 of our no-load offerings.
Sincerely,
(signature)
A. Bruce Cleveland
President
<PAGE>
Arizona Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
Credit Rating Principal
Moody's S&P<F1> Amount Value
LONG-TERM MUNICIPAL BONDS:
98.1% of Net Assets
AIRPORT: 4.6%
Aaa AAA Tucson Airport Authority,
Income Revenue (MBIA Insured),
5.7%, 6/1/13 <F5> $500,000 $482,500
EDUCATION: 4.1%
A nr Arizona Educational Loan
Marketing Corporation, Student
Loan Revenue (AMT), 7%,
3/1/03 <F5> 400,000 424,000
ELECTRIC: 4.8%
Aa AA Salt River Project Agricultural
Improvements and Power District,
Electric Systems Revenue, 6%,
1/1/16 500,000 502,500
GENERAL OBLIGATION: 39.4%
Aaa AAA Chandler (FGIC Insured), 7%,
7/1/12 <F5> 300,000 323,250
Aaa AAA Maricopa County School
District, (Number 80 Chandler)
(FGIC Insured), 6.25%,
7/1/11 <F5> 500,000 530,000
Aaa AAA Maricopa County School
District, (Number 216)
(FGIC Insured), 6.7%,
7/1/11 <F5> 300,000 325,500
Aaa AAA Mohave County Unified School
District, (Number 1 Lake
Havasu) (AMBAC Insured), 5.2%,
7/1/09 <F5> 250,000 236,875
Aaa AAA Mohave County Unified School
District, (Number 1 Lake
Havasu) (AMBAC Insured), 5.25%,
7/1/10 <F5> 250,000 236,250
Aaa AAA Navajo County Unified School
District, (Number 32 Blue
Ridge) (CGIC Insured), 6%,
7/1/09 <F5> 500,000 503,750
Aa AA+ Phoenix, 5.25%, 7/1/12 400,000 373,000
Aa AA+ Phoenix, 6%, 7/1/13 500,000 505,000
#Aaa AA+ Scottsdale, 6.9%, 7/1/07 <F5> 100,000 110,250
Aa1 AA+ Scottsdale, 5.5%, 7/1/09 200,000 195,250
Aa AA+ Tempe, 5.35%, 7/1/10 400,000 384,500
A1 AA- Tucson, 5.6%, 7/1/16 400,000 383,228
HOSPITAL: 4.5%
Aaa AAA Arizona Health Facilities
Authority, Hospital System
Revenue (Samaritan Health
Services) (MBIA Insured)
6.25%, 12/1/06 <F5> 250,000 260,625
Aaa AAA Arizona Health Facilities
Authority, Hospital System
Revenue (Phoenix Baptist
Hospital) (MBIA Insured),
6.25%, 9/1/11 <F5> 200,000 204,250
HOUSING: 9.8%
nr AAA Phoenix Industrial Development
Authority, Mortgage Revenue
(Chris Ridge) (FHA), 6.75%,
11/1/12 <F5> 500,000 511,875
nr AAA Pima County Industrial
Development Authority,
Single-Family Mortgage Revenue
(GNMA Collateralized) (AMT),
6.2%, 5/1/27 <F5> 500,000 506,875
INDUSTRIAL DEVELOPMENT: 3.1%
nr AAA Mohave County Industrial
Development Authority,
Industrial Development Revenue
(Citizens Utilities), 7.05%,
8/1/20 <F5> 300,000 318,000
LEASING: 2.9%
Aaa AAA Scottsdale Municipal Property
Corporation, Lease Revenue
(FGIC Insured), 6.25%,
11/1/14 <F5> 300,000 305,250
TRANSPORTATION: 17.9%
Aa AA Arizona State Transportation
Board, Highway Revenue, 6%,
7/1/08 400,000 412,000
Aaa AAA Flagstaff, Street and Highway
User Revenue (FGIC Insured),
5.9%, 7/1/10 <F5> 500,000 509,375
Baa1 A Puerto Rico Commonwealth
Highway and Transportation
Authority, Highway Revenue,
6.375%, 7/1/08 450,000 465,750
A1 A+ Tucson, Street and Highway User
Revenue, 5.5%, 7/1/09 500,000 482,500
See Notes to Portfolios of Investments.
<PAGE>
Arizona Portfolio
Portfolio of Investments - March 31, 1995 (continued)
Credit Rating Principal
Moody's S&P<F1> Amount Value
WATER AND SEWER: 7.0%
Aaa AAA Arizona State Wastewater
Management Authority, Revenue
(AMBAC Insured), 5.95%,
7/1/12 <F5> $200,000 $200,000
Aaa AAA Chandler, Water and Sewer
Revenue (FGIC Insured), 6.75%,
7/1/06 <F5> 250,000 267,188
nr BBB- Cottonwood, Sewer Revenue,
6.85%, 7/1/02 <F5> 250,000 265,937
TOTAL INVESTMENTS
(Cost $10,049,129) <F2> $10,225,478
Maryland Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
Credit Rating Principal
Moody's S&P<F1> Amount Value
LONG-TERM MUNICIPAL BONDS:
92.6% of Net Assets
EDUCATION: 8.1%
Aa1 AA- Maryland Health and Higher
Educational Facilities
Authority, Revenue (Johns
Hopkins University), 7.5%,
7/1/20 $100,000 $106,125
Aaa AAA Saint Mary's College, College
Revenue (MBIA Insured), 5.55%,
9/1/23 <F5> 100,000 95,125
Aa AA+ University of Maryland System,
Auxiliary Facilities and
Tuition Revenue, 5.5%, 4/1/13 50,000 47,500
ELECTRIC: 5.8%
Baa1 A- Puerto Rico Electric Power
Authority, Power Revenue,
6.25%, 7/1/17 80,000 79,800
Baa1 A- Puerto Rico Electric Power
Authority, Power Revenue, 6%,
7/1/14 100,000 97,500
GENERAL OBLIGATION: 16.1%
Aaa AAA Baltimore (Consolidated Public
Improvement) (AMBAC Insured),
6%, 10/15/04 <F5> 100,000 104,874
#Aaa AAA Harford County, 5.75%, 9/1/08
<F5> 25,000 26,250
Aa AA- Harford County, 5.75%, 9/1/08 25,000 25,156
Aa1 AA+ Howard County (Consolidated
Public Improvement), 6%,
5/15/13 150,000 151,875
Aaa AAA Ocean City (MBIA Insured),
6.3%, 11/1/09 <F5> 50,000 54,187
Aaa AAA Saint Mary's County
(Metropolitan Commission)
(MBIA Insured), 5.85%,
11/1/18 <F5> 80,000 79,000
Aa1 AA Washington Suburban Sanitary
District (General
Construction), 5.875%, 6/1/08 50,000 50,813
HOSPITAL: 9.8%
Aaa AAA Maryland Health and Higher
Educational Facilities
Authority, Hospital Revenue
(North Arundel Hospital) (BIG
Insured), 7.875%, 7/1/21 <F5> 100,000 111,000
A A Maryland Health and Higher
Educational Facilities
Authority, Hospital Revenue
(Good Samaritan Hospital),
5.75%, 7/1/19 100,000 93,375
Baa nr Prince George's County
Hospital, Hospital Revenue
(Greater Southeast Healthcare
System), 6.2%, 1/1/08 100,000 95,625
HOUSING: 14.8%
nr AAA Anne Arundel County, Mortgage
Revenue (Westwinds Apartments)
(FHA), 6%, 12/1/26 <F5> 50,000 49,375
nr AAA Baltimore County, Mortgage
Revenue (Olde Forge Townhouses)
(FHA), 6%, 1/1/10 <F5> 80,000 78,500
nr AAA Frederick, Mortgage Revenue
(Carrollton Apartments) (FHA),
5.8%, 9/1/24 <F5> 100,000 94,250
Aa nr Maryland Community Development
Administration, Multifamily
Housing Revenue (GNMA
Collaterized) (FHA), 5.95%,
5/15/13 <F5> 80,000 78,000
nr AAA Prince George's County Housing
Authority, Single-Family
Mortgage Revenue (GNMA/FNMA
Collaterized) (AMT), 6.5%,
12/1/15 <F5> 150,000 152,438
LEASING: 4.5%
Aa AA- Maryland State Stadium
Authority, Sports Facilities
Lease Revenue (AMT), 7.5%,
12/15/10 <F5> 125,000 136,563
See Notes to Portfolio of Investments.
<PAGE>
Maryland Portfolio
Portfolio of Investments - March 31, 1995 (continued)
Credit Rating Principal
Moody's S&P<F1> Amount Value
POLLUTION CONTROL: 7.4%
A2 A Anne Arundel County, Pollution
Control Revenue (Baltimore Gas
and Electric Company), 6%,
4/1/24 $100,000 $98,250
A1 A Prince George's County,
Pollution Control Revenue
(Potomac Electric), 6.375%,
1/15/23 125,000 127,656
PUBLIC FACILITIES: 8.3%
Aaa AAA Baltimore, Convention Center
Revenue (FGIC Insured), 6.1%,
9/1/14 <F5> 150,000 152,438
Aa AA- Howard County, Special
Facilities Revenue, 5.95%,
2/15/10 100,000 101,500
TRANSPORTATION: 6.8%
#Aaa AAA Maryland State Department of
Transportation, Revenue, 6.7%,
7/1/98 <F5> 100,000 105,125
Aa2 AA Baltimore, Port Facilities
Revenue (Consolidated Coal
Sales), 6.5%, 10/1/11 100,000 104,375
UTILITY: 1.8%
A A+ Puerto Rico Telephone
Authority, Revenue, 5.5%,
1/1/22 60,000 55,275
WASTE: 6.1%
Aaa AAA Montgomery County, Solid Waste
System Revenue (AMBAC Insured)
(AMT), 5.875%, 6/1/13 <F5> 80,000 78,600
#Aaa nr Worcester County (Sanitation),
7.5%, 8/15/06 <F5> 100,000 108,250
WATER: 3.2%
Aaa AAA Baltimore, Water Revenue
(Water Projects) (MBIA
Insured), 5.5%, 7/1/08 <F5> 100,000 96,750
TOTAL INVESTMENTS
(Cost $2,860,019) <F2> $2,835,550
Missouri Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
Credit Rating Principal
Moody's S&P<F1> Amount Value
LONG-TERM MUNICIPAL BONDS:
94.1% of Net Assets
AIRPORT: 4.5%
Aaa AAA St. Louis, Airport Revenue
(Lambert-St. Louis
International) (FGIC Insured)
(AMT), 6.125%, 7/1/12 <F5> $500,000 $505,625
EDUCATION: 5.7%
Aaa AAA Missouri Health and Educational
Facilities Authority,
University Revenue (St. Louis
University) (AMBAC Insured),
6.5%, 8/1/16 <F5> 150,000 154,688
A nr Missouri Higher Education Loan
Authority, Revenue (AMT),
5.9%, 2/15/08 <F5> 500,000 478,750
ELECTRIC: 9.9%
Baa1 AAA Puerto Rico Electric Power
Authority, Power Revenue, 8%,
7/1/08 175,000 195,562
Aaa AAA Sikeston, Electric Revenue
(MBIA Insured), 6%, 6/1/05
<F5> 400,000 416,500
nr A University Development
Foundation, Revenue (Missouri
Power), 5.75%, 5/1/13 <F5> 500,000 488,750
GENERAL OBLIGATION: 27.3%
Aa nr Clayton School District, 5.65%,
2/1/14 <F5> 500,000 486,875
Aaa AAA Farmington School District
(Number R-7) (CGIC Insured),
6.35%, 3/1/12 <F5> 400,000 410,000
Aa nr Jefferson City School District,
6.7%, 3/1/11 <F5> 200,000 221,500
nr AAA Puerto Rico Commonwealth
(Public Improvements), 7.75%,
7/1/17 <F5> 250,000 281,562
Aaa AAA St. Charles County, Francis
Howell School District
(FGIC Insured), 6.5%,
3/1/05 <F5> 250,000 270,000
Aa1 nr St. Louis County, 6.3%,
2/1/11 <F5> 400,000 413,000
Aa nr St. Louis County School
District (Number R-7 Kirkwood),
5.5%, 2/15/13 <F5> 500,000 481,875
Aaa AAA Springfield School District
(Number R-12) (MBIA Insured),
5.25%, 3/1/11 <F5> 500,000 467,500
See Notes to Portfolio of Investments
<PAGE>
Missouri Portfolio
Portfolio of Investments - March 31, 1995 (continued)
Credit Rating Principal
Moody's S&P<F1> Amount Value
HOSPITAL: 12.6%
Aaa AAA Missouri Health and
Educational Facilities
Authority, Health Facilities
Revenue (SSM Health Care)
(MBIA Insured), 6.25%,
6/1/16 <F5> $250,000 $254,063
Aaa AAA Missouri Health and Educational
Facilities Authority, Health
Facilities Revenue (Heartland
Health System) (AMBAC Insured),
6.35%, 11/15/17 <F5> 500,000 513,125
Aaa AAA Missouri Health and Educational
Facilities Authority, Health
Facilities Revenue (Children's
Mercy Hospital) (MBIA Insured),
5.65%, 5/15/23 <F5> 500,000 469,375
nr nr Missouri Health and Educational
Facilities Authority, Health
Facilities Revenue (Missouri
Baptist Medical Center),
7.625%, 7/1/18 <F5> 140,000 169,225
HOUSING: 5.4%
Aa AA Missouri State Board of Public
Buildings, State Office
Building Revenue, 6.4%,
12/1/08 300,000 313,125
nr AAA Missouri State Housing
Development Commission,
Single-Family Mortgage Revenue
(GNMA Collaterized) (AMT),
7.75%, 6/1/22 <F5> 80,000 83,900
nr AAA Missouri State Housing
Development Commission,
Single-Family Mortgage Revenue
(GNMA Collaterized) (AMT),
7.375%, 8/1/23 <F5> 190,000 201,400
LEASING: 8.8%
Aaa AAA Kansas City Municipal Assistance
Corporation, Revenue, Leasehold
Improvement (H. Roe Bartle)
(AMBAC Insured), 6%,
4/15/20 <F5> 500,000 502,500
nr AAA St. Louis County, Mortgage
Revenue (Certificates of
Receipt) (AMT), 5.65%,
2/1/20 <F5> 500,000 477,500
TRANSPORTATION: 3.5%
Baa1 A Puerto Rico Commonwealth
Highway Authority, Revenue,
6%, 7/1/20 405,000 391,838
WASTE: 6.1%
Aa nr Missouri State Environmental
Improvement and Energy
Resources Authority, Water
Pollution Control Revenue,
5.4%, 7/1/15 <F5> 500,000 463,750
A1 AA- St. Louis Industrial
Development Authority,
Pollution Control Revenue
(Anheuser Busch Company),
6.65%, 5/1/16 200,000 218,750
WATER: 10.2%
Aaa AAA Cape Girardeau, Waterworks
System Revenue (FGIC Insured),
6.4%, 3/1/12 <F5> 400,000 414,500
A1 AA Columbia, Water and Electric
Revenue, 6.125%, 10/1/12 400,000 403,500
Aaa AAA Liberty, Water Revenue (MBIA
Insured), 6.3%, 10/1/12 <F5> 300,000 311,250
TOTAL INVESTMENTS
(Cost $10,359,778) <F2> $10,459,988
Virginia Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
Credit Rating Principal
Moody's S&P<F1> Amount Value
LONG-TERM MUNICIPAL BONDS:
96.7% of Net Assets
AIRPORT: 3.1%
Aaa AAA Metropolitan Washington D.C.
Airports Authority, General
Airport Revenue (MBIA Insured)
(AMT), 6.625%, 10/1/12 <F5> $500,000 $517,500
Aaa AAA Metropolitan Washington D.C.
Airports Authority, General
Airport Revenue (FGIC Insured)
(AMT), 7%, 10/1/18 <F5> 500,000 534,375
See Notes to Portfolios of Investments.
<PAGE>
Virginia Portfolio
Portfolio of Investments - March 31, 1995 (continued)
Credit Rating Principal
Moody's S&P<F1> Amount Value
EDUCATION: 9.6%
nr nr Loudoun County Industrial
Development Authority,
University Facilities Revenue
(George Washington University),
6.25%, 5/15/22 <F5> $500,000 $498,750
nr BBB- Virginia College Building
Authority, Educational
Facilities Revenue (Marymount
University), 7%, 7/1/22 <F5> 350,000 360,500
Aa AA Virginia College Building
Authority, Educational
Facilities Revenue (Washington
and Lee University), 5.75%,
1/1/14 325,000 319,313
Aa AA Virginia State Public School
Authority, Revenue, 6.25%,
8/1/10 500,000 517,500
Aa AA Virginia State Public School
Authority, Revenue, 6.2%,
8/1/13 500,000 511,875
Aa AA Virginia State Public School
Authority, Revenue, 5.9%,
7/15/14 500,000 501,875
Aa AA Virginia State Public School
Authority, Revenue, 6.5%,
8/1/15 500,000 523,750
ELECTRICAL: 4.4%
Aaa AAA Halifax County Industrial
Development Authority, Revenue
(Old Dominion Electric) (MBIA
Insured) (AMT), 6%,
12/1/22 <F5> 1,000,000 987,500
Baa1 A- Puerto Rico Electric Power
Authority, Revenue, 6%, 7/1/14 500,000 487,500
GENERAL OBLIGATION: 23.5%
Aaa AAA Arlington County (Recreational
Facilities Improvements), 6%,
8/1/12 500,000 511,250
Aa A+ Falls Church (School
Improvements), 5.5%, 8/1/13 500,000 477,500
Aaa AAA Franklin County (Capital
Improvements) (FGIC Insured),
6.5%, 7/15/12 <F5> 300,000 311,625
Aaa AAA Henrico County (Public
Improvements), 5.35%, 1/15/11 1,000,000 961,250
A A Henry County (Public
Improvements), 6%, 7/15/14 500,000 498,125
Aa AA Lynchburg, 5.25%, 4/1/10 1,000,000 945,000
Aa AA Norfolk (Public Improvements),
5.5%, 2/1/10 500,000 485,000
Baa1 A Puerto Rico Commonwealth, 6.3%,
7/1/09 1,000,000 1,021,250
Aa AA Roanoke (Public Improvements),
5%, 8/1/10 250,000 229,062
Aaa AAA Virginia (Higher Educational
Institutions), 6%, 6/1/15 1,000,000 1,011,250
Aa AA Virginia Beach (Public
Improvements) 6.2%, 9/1/13 500,000 511,875
Aa AA Winchester (Water Utility
Improvements), 5.5%, 1/15/14 1,000,000 953,750
HOSPITAL: 7.6%
Aaa AAA Danville Virginia Industrial
Development Authority, Hospital
Revenue (Danville Regional
Medical Center) (FGIC Insured),
6.375%, 10/1/14 <F5> 500,000 515,625
Aa AA Norfolk Industrial Development
Authority, Hospital Revenue
(Sentara Hospital), 6.5%,
11/1/13 1,500,000 1,550,625
Aaa AAA Roanoke Industrial Development
Authority, Hospital Revenue
(Roanoke Memorial Hospitals)
(MBIA Insured), 6.125%,
7/1/17 <F5> 500,000 505,625
HOUSING: 4.3%
Aaa AAA Puerto Rico Housing Finance
Corporation, Single-Family
Mortgage Revenue (GNMA
Collateralized), 7.8%,
10/15/21 <F5> 150,000 157,500
Aa1 AA+ Virginia State Housing
Development Authority,
Commonwealth Mortgage Revenue
(AMT), 6.95%, 1/1/10 <F5> 1,000,000 1,037,500
Aa AA+ Virginia State Housing
Development Authority,
Multifamily Revenue, 8.5%,
5/1/98 150,000 154,312
Aa AA+ Virginia State Housing
Development Authority,
Multifamily Revenue, 8.5%,
11/1/98 100,000 103,000
INDUSTRIAL DEVELOPMENT: 4.6%
Baa3 BBB- Peninsula Ports Authority, Coal
Terminal Revenue, 7.375%,
6/1/20 1,000,000 1,038,750
A1 A Puerto Rico Industrial, Medical,
& Environmental Revenue
(Pepsico, Inc.), 6.25%,
11/15/13 500,000 516,875
OTHER FACILITIES: 6.8%
nr BBB Fairfax County Park Authority,
Facilities Revenue, 6.625%,
7/15/14 <F5> 500,000 499,375
nr A- Prince William County Park
Authority, Revenue, 6.875%,
10/15/16 <F5> 500,000 520,000
A nr Prince William County Park
Authority, Revenue, 7.5%,
7/15/20 <F5> 450,000 487,125
Aaa AAA Riverside Regional Jail
Authority, Jail Facilities
Revenue, (MBIA Insured) 6%,
7/1/25 <F5> 250,000 246,250
Aa AA Virginia State Public Building
Authority, Building Revenue,
6.25%, 8/1/12 500,000 518,125
See Notes to Portfolios of Investments.
<PAGE>
Virginia Portfolio
Portfolio of Investments - March 31, 1995 (continued)
Credit Rating Principal
Moody's S&P<F1> Amount Value
TRANSPORTATION: 12.1%
Aaa AAA Chesapeake Bay Bridge and
Tunnel, Highway Revenue (MBIA
Insured), 6.375%, 7/1/22 <F5> $500,000 $507,500
Aaa AAA Richmond Metropolitan
Authority, Expressway Revenue
(FGIC Insured), 6.375%,
7/15/16 <F5> 1,000,000 1,023,750
Aa AA Virginia State Transportation
Board, Transportation Contract
Revenue (Route 28 Project),
6%, 4/1/10 1,000,000 1,020,000
Aa AA Virginia State Transportation
Board, Transportation Contract
Revenue (Route 58 Corridor
Development), 5.625%, 5/15/13 500,000 484,375
Aaa AAA Washington D.C. Metropolitan
Area Transportation Authority,
Revenue (FGIC Insured), 6%,
7/1/07 <F5> 1,000,000 1,028,750
WASTE: 5.6%
A1 A+ Fairfax County Economic
Development Authority,
Revenue (Ogden Martin Systems)
(AMT), 7.55%, 2/1/03 <F5> 500,000 541,250
A1 A+ Fairfax County Economic
Development Authority, Revenue
(Ogden Martin Systems) (AMT),
7.6%, 2/1/04 <F5> 250,000 270,938
A1 A+ Fairfax County Economic
Development Authority, Revenue
(Ogden Martin Systems) (AMT),
7.75%, 2/1/11 <F5> 500,000 548,750
A1 AA- Henrico County, Water and
Sewer Revenue, 6.25%, 5/1/13 500,000 508,125
WATER: 15.0%
Aa AA- Fairfax County Water Authority,
Water Revenue, 6%, 4/1/22 1,500,000 1,483,125
Aaa AAA Frederick-Winchester Service
Authority, Sewer Revenue
(AMBAC Insured), 5.75%,
10/1/15 <F5> 1,000,000 967,500
Aaa AAA Stafford County, Water Revenue
(FGIC Insured), 5.25%,
6/1/12 <F5> 1,000,000 923,750
nr AA Virginia State Resource
Authority, Water and Sewer
System Revenue (Lot 3), 7.25%,
10/1/11 <F5> 1,500,000 1,676,250
TOTAL INVESTMENTS
(Cost $32,050,483) <F2> $32,512,125
National Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
Credit Rating Principal
Moody's S&P<F1> Amount Value
LONG-TERM MUNICIPAL BONDS:
95.2% of Net Assets
ARIZONA: 7.9%
Aa AA Arizona State Transportation
Board, Highway Revenue, 6%,
7/1/08 $1,000,000 $1,030,000
Aa AA- Maricopa County Unified School
District, General Obligation,
(Number 48 Scottsdale), 6.3%,
7/1/04 1,000,000 1,065,000
Aa AA Salt River Project, Electric
Systems Revenue (Agricultural
Improvements and Power District),
6.2%, 1/1/12 500,000 511,250
CALIFORNIA: 3.1%
Aaa AAA San Jose Redevelopment Agency,
Tax Allocation (MBIA Insured),
6%, 8/1/09 <F5> 1,000,000 1,018,750
GEORGIA: 3.0%
A2 A Burke County Development
Authority, Pollution Control
Revenue (Georgia Power Company,
Plant Vogtle), 6.375%, 8/1/24 1,000,000 1,000,000
HAWAII: 4.8%
Aaa AAA Hawaii State, Airports Systems
Revenue (FGIC Insured) (AMT),
7%, 7/1/20 <F5> 1,500,000 1,580,625
See Notes to Portfolios of Investments.
<PAGE>
National Portfolio
Portfolio of Investments - March 31, 1995 (continued)
Credit Rating Principal
Moody's S&P<F1> Amount Value
ILLINOIS: 1.0%
Aaa AAA Regional Transit Authority,
Revenue (AMBAC Insured),
7.2%, 11/1/20 <F5> $300,000 $342,750
IOWA: 4.8%
Aaa AAA Mason City, Hospital Facilities
Revenue (Sisters of Mercy)
(FSA Insured), 7%,
8/15/14 <F5> 1,500,000 1,588,125
KANSAS: 1.6%
Aa AA Kansas State Department of
Transportation, Highway
Revenue, 6.125%, 9/1/09 500,000 524,375
LOUISIANA: 4.8%
Aaa AAA Louisiana State, General
Obligation, (MBIA Insured),
6%, 5/15/15 <F5> 500,000 498,750
Aaa AAA Louisiana State Energy and Power
Authority, Power Project Revenue
(Rodemacher Unit Number 2)
(FGIC Insured), 6.75%,
1/1/08 <F5> 1,000,000 1,070,000
MARYLAND: 5.8%
Aa AA+ Anne Arundel County, General
Obligation (Utility
Improvements), 6.3%, 8/1/19 725,000 744,938
Aa1 AA+ Howard County, General
Obligation, 6%, 8/15/19 500,000 501,250
Aa nr Montgomery County, Single-Family
Mortgage Revenue, 6.65%,
7/1/17 <F5> 500,000 512,500
nr AAA Prince George's County Housing
Authority, Single-Family
Mortgage Revenue (GNMA/FNMA
Collateralized) (AMT), 6.5%,
12/1/15 <F5> 150,000 152,437
MASSACHUSETTS: 6.5%
A1 A+ Massachusetts Bay Transportation
Authority, Revenue (General
Transportation System), 7%,
3/1/14 1,000,000 1,113,750
A1 A+ Massachusetts State, General
Obligation, 6%, 8/1/14 500,000 498,125
Aa AA- Massachusetts State, Revenue
(Sewer Improvements), 6.25%,
2/1/11 500,000 513,125
MICHIGAN: 2.5%
nr AA+ Michigan State Housing
Development Authority, Revenue
(AMT), 7.75%, 12/1/19 <F5> 790,000 829,500
MISSISSIPPI: 3.9%
Aaa AAA Harrison County Wastewater
Management District, Revenue
(Wastewater Treatment
Facilities) (FGIC Insured),
8.5%, 2/1/13 <F5> 500,000 652,500
Aaa AAA Harrison County Wastewater
Management District, Revenue
(Wastewater Treatment Facilities)
(FGIC Insured), 7.75%,
2/1/14 <F5> 500,000 628,125
NEW JERSEY: 3.2%
A A+ New Jersey Health Care Facilities
Financing Authority, Revenue
(Morristown Memorial Hospital),
7.125%, 7/1/08 500,000 527,500
A A New Jersey State Turnpike
Authority, Highway Revenue,
6.5%, 1/1/16 500,000 528,750
NORTH CAROLINA: 2.9%
A A- North Carolina Eastern Municipal
Power Agency, Electric Revenue,
6.25%, 1/1/12 1,000,000 967,500
PENNSYLVANIA: 12.0%
Aaa AAA Lehigh County General Purpose
Authority, Revenue (Lehigh
Valley Hospital)
(MBIA Insured), 7%,
7/1/16 <F5> 1,000,000 1,108,750
Aaa AAA Pennsylvania State Higher
Educational Facilities
Authority, College & University
Revenue (Duquesne University)
(MBIA Insured), 6.75%,
4/1/20 <F5> 1,300,000 1,343,875
Aaa AAA Pennsylvania State Industrial
Development Authority, Revenue
(AMBAC Insured), 6%,
1/1/12 <F5> 1,500,000 1,511,250
RHODE ISLAND: 1.6%
Aa AA Rhode Island State Health and
Higher Educational Facilities,
Revenue (Brown University),
6.75%, 9/1/16 500,000 521,250
SOUTH CAROLINA: 3.3%
Aaa AAA Piedmont Municipal Power
Agency, Electric Revenue (FGIC
Insured), 6.5%, 1/1/16 <F5> 1,000,000 1,072,500
See Notes to Portfolios of Investments.
<PAGE>
National Portfolio
Portfolio of Investments - March 31, 1995 (continued)
Credit Rating Principal
Moody's S&P<F1> Amount Value
TEXAS: 8.5%
Aaa AAA Texas Public Building Authority,
Building Revenue (MBIA Insured),
7.125%, 8/1/11 <F5> $1,500,000 $1,691,250
Aaa AAA United Independent School
District, General Obligation
(Permanent School Fund), 7%,
8/15/05 1,000,000 1,113,750
VIRGINIA: 5.8%
Aaa AAA Chesapeake Bay Bridge and Tunnel
(MBIA Insured), Highway Revenue,
6.375%, 7/1/22 <F5> 475,000 482,125
nr A- Prince William County Park
Authority Revenue, 6.875%,
10/15/16 <F5> 500,000 520,000
Aa AA Virginia Beach, General
Obligation, 6.2%, 9/1/13 500,000 511,875
Aa AA+ Virginia State Housing
Development Authority,
Multifamily Revenue, 6.65%,
11/1/13 400,000 413,000
WASHINGTON: 8.1%
A1 AA- Port Seattle, Revenue (AMBAC
Insured) (AMT), 7.6%,
12/1/09 <F5> 1,000,000 1,112,500
A1 A+ Snohomish County Public Utility
District Number 1, Electric
Revenue, 7%, 1/1/16 1,000,000 1,053,750
Aa AA Washington State Public Power
Supply System, Revenue (Nuclear
Project Number 3), 6.5%,
7/1/18 500,000 502,500
TOTAL LONG-TERM MUNICIPAL BONDS
(Cost $31,206,650) <F2> 31,358,000
SHORT-TERM MUNICIPAL BONDS:
2.4% of Net Assets
LOUISIANA: 1.5%
VMIG1 A-1+ New Orleans Aviation Board, Revenue
(MBIA Insured), 3.95%,
8/1/16 <F3> <F5> 500,000 500,000
MISSOURI: 0.9%
VMIG1 A-1+ Kansas City Industrial
Development Authority, Hospital
Revenue (Research Health
Services Systems), 4.5%,
10/15/14 <F3> 100,000 100,000
Aa3 A-1+ West Feliciana Parish,
Pollution Control Revenue (Gulf
States Utilities Company) 4.5%,
12/1/15 <F3> 200,000 200,000
TOTAL SHORT-TERM MUNICIPAL BONDS
(Cost $800,000) <F2> 800,000
TOTAL INVESTMENTS
(Cost $32,006,650) <F2> $32,158,000
Money Market Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
Credit Rating Principal
Moody's S&P<F1> Amount Value
SHORT-TERM MUNICIPAL SECURITIES: 95.7%
ARIZONA: 3.3%
VMIG1 A-1 Maricopa County Industrial
Development Authority, Hospital
Facilities Revenue (Samaritan
Health Services), 3.85%,
12/1/08 <F3> $300,000 $300,000
CALIFORNIA: 7.7%
VMIG1 A-1+ California Higher Education
Loan Authority, Student Loan
Revenue (LOC - Student Loan
Marketing) (AMT), 3.85%,
7/1/02 <F3> <F5> 500,000 499,410
P-1 nr Los Angeles Regional Airports,
Lease Revenue (American
Airlines) (LOC - Wachovia Bank
of Atlanta), 4.6%,
12/1/24 <F3> <F5> 200,000 200,000
FLORIDA: 2.3%
Aaa AAA Santa Rosa County, Capital
Improvement Revenue (FGIC
Insured), 7.875%,
8/1/17 <F4> <F5> 200,000 208,274
See Notes to Portfolios of Investments
<PAGE>
Money Market Portfolio
Portfolio of Investments - March 31, 1995 (continued)
Credit Rating Principal
Moody's S&P<F1> Amount Value
GEORGIA: 3.3%
Aaa AA+ Georgia, General Obligation
(Series D), 6.8%, 8/1/95 $300,000 $302,355
KANSAS: 4.4%
P-1 A-1+ Burlington, Pollution Control
Revenue (Kansas City Power and
Light) (LOC - Duetsche Bank
A.G.), 4%, 10/1/17 <F3> <F5> 400,000 400,000
LOUISIANA: 6.6%
VMIG1 A-1+ New Orleans Aviation Board,
Airport Revenue (MBIA Insured),
3.95%, 8/1/16 <F3> <F5> 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 <F3> <F5> 200,000 200,000
MARYLAND: 12.3%
VMIG1 nr Baltimore County, Hospital
Revenue (Sheppard and Enoch
Pratt Hospital) (LOC - Societe
General), 3.95%,
7/1/21 <F3> <F5> 300,000 300,000
VMIG1 A-1 Baltimore Industrial Development
Authority, Revenue (Capital
Acquisitions) (LOC - Dai-Ichi
Kangyo), 4.1%, 8/1/16 <F3><F5> 400,000 400,000
#Aaa AAA Maryland Health and Higher
Educational Facilities
Authority, University Revenue
(Johns Hopkins University),
9.25%, 7/1/95 <F5> 400,000 412,700
MISSOURI: 2.2%
VMIG1 A-1 Kansas City Industrial
Development Authority, Hospital
Revenue (Research Health
Service) (MBIA Insured), 4.5%,
10/15/14 <F3> <F5> 200,000 200,000
NORTH CAROLINA: 5.5%
nr A-1+ Winston-Salem, Floating Risk
Acceptance Management
Corporation (Certificate of
Participation), 4.3%,
7/1/09 <F3> <F5> 500,000 500,000
NEBRASKA: 8.3%
VMIG1 AAA Nebraska Higher Education Loan
Program, Student Loan Revenue
(MBIA Insured), 4.1%,
12/1/15 <F3> <F5> 750,000 750,000
NEVADA: 4.4%
VMIG1 A-1+ Clark County, Industrial
Development Revenue (Nevada
Cogeneration Association #2),
4.7%, 12/1/22 <F3> 400,000 400,000
NEW YORK: 3.3%
Aaa AAA New York State Dormitory
Authority, Special Obligation
(State University Educational
Facilities), 6.3%, 5/1/95 300,000 300,572
SOUTH CAROLINA: 4.6%
#AAA AAA South Carolina Public Service
Authority, Electric Power and
Light Revenue (Santee Cooper),
9.5%, 7/1/95 400,000 416,992
TEXAS: 7.7%
VMIG1 A-1+ Port Development Corporation,
Marine Terminal Revenue
(Stolt Terminals) (LOC -
Credit Suisse), 4.15%,
1/15/14 <F3> <F5> 600,000 600,000
#AAA A+ San Antonio, Water Revenue,
6.6%, 5/1/95 100,000 100,171
UTAH: 4.4%
VMIG1 A-1+ Salt Lake City, Airport Revenue
(LOC - Credit Suisse) (AMT),
4.30%, 6/1/98 <F3> <F5> 400,000 400,000
VIRGINIA: 10.6%
nr nr Arlington County, General
Obligation, 9%, 6/1/95 <F5> 100,000 103,242
VMIG1 nr Harrisonburg Redevelopment and
Housing Authority, Multifamily
Housing Revenue (Rolling
Brook Village) (LOC -
Guardian), 5.1%, 2/1/96 <F5> 400,000 400,000
nr AAA Henrico County, General
Obligation (Public
Improvements), 8.2%,
7/1/95 <F5> 100,000 102,655
MIG1 Spl+ Richmond, General Obligation
(Revenue Anticipation Notes)
5.5%, 6/30/95 250,000 255,730
Aaa AAA Upper Occoquan Sewer Authority,
Sewer Revenue (AMBAC Insured),
4%, 7/1/95 <F5> 100,000 99,916
See Notes to Portfolios of Investments.
<PAGE>
Money Market Portfolio
Portfolio of Investments - March 31, 1995 - (continued)
Credit Rating Principal
Moody's S&P<F1> Amount Value
WASHINGTON: 4.4%
nr A-1+ Port Kalama, Port Facilities
Revenue (Conagra) (LOC -
Morgan Guaranty Trust), 4.15%,
1/1/04 <F3> <F5> $100,000 $100,000
nr A-1+ Washington State Housing Finance
Commission, Multifamily Mortgage
Revenue (LOC - Pacific First
Federal), 4.25%,
7/1/20 <F3> <F5> 300,000 300,000
TOTAL INVESTMENTS
(Cost $8,637,132) <F2> $8,652,017
Notes to Portfolio of Investments:
[FN]
<F1>
Moody's Moody's Investors Service, Inc.
S&P Standard & Poor's Corporation
<F2>
Aggregate cost for federal income tax purposes
<F3>
Security has a variable coupon rate and is putable before final maturity.
Coupon rate as of March 31, 1995
<F4>
Security is putable before final maturity.
<F5>
#Aaa Refunded Bonds
AMBAC American Municipal Bond Assurance Corporation
AMT Subject to Alternative Minimum Tax
BIG 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 Financial Security Assistance
GNMA Government National Mortgage Association
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corporation
nr Not rated
[/FN]
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
Statements of Assets and Liabilities
March 31, 1995
Arizona Maryland Missouri
Portfolio Portfolio Portfolio
ASSETS
Investments, at cost $10,049,129 $2,860,019 $10,359,778
Investments, at value
(Note 1) 10,225,478 2,835,550 10,459,988
Cash 434,617 178,143 497,061
Receivables
Investment securities sold -- -- --
Interest 161,935 49,028 165,506
Share subscriptions
receivable (Note 1) 274 -- --
Other assets -- -- --
Total assets 10,822,304 3,062,721 11,122,555
LIABILITIES
Payables
Investment securities
purchased 384,846 -- --
Dividends 12,666 672 7,660
Capital shares redeemed -- -- --
Shares reserved for
subscription (Note 1) 274 -- --
Other liabilities 13 -- 14
Total liabilities 397,799 672 7,674
NET ASSETS (Note 4) $10,424,505 $3,062,049 $11,114,881
CAPITAL SHARES OUTSTANDING 1,047,472 319,854 1,112,315
NET ASSET VALUE PER SHARE $9.952 $9.573 $9.993
Money
Virginia National Market
Portfolio Portfolio Portfolio
ASSETS
Investments, at cost $32,050,483 $32,006,650$8,637,132
Investments, at value
(Note 1) 32,512,125 32,158,000 8,652,017
Cash 331,680 306,506 315,827
Receivables
Investment securities sold 1,111,049 533,647 --
Interest 708,519 462,002 76,487
Share subscriptions
receivable (Note 1) 6,574 200 10,745
Other assets 195 -- --
Total assets 34,670,142 33,460,355 9,055,076
LIABILITIES
Payables
Investment securities
purchased 1,008,222 502,917 --
Dividends 20,067 13,657 912
Capital shares redeemed 7,548 603 896
Shares reserved for
subscription (Note 1) 6,574 200 10,745
Other liabilities 477 274 12
Total liabilities 1,042,888 517,651 12,565
NET ASSETS (Note 4) $33,627,254 $32,942,704$9,042,511
CAPITAL SHARES OUTSTANDING 3,081,368 3,280,060 9,027,809
NET ASSET VALUE PER SHARE $10.913 $10.043 $1.000
Statements of Assets Operations
For the Six Months Ended March 31, 1995
(Unaudited)
Arizona Maryland Missouri
Portfolio Portfolio Portfolio
INVESTMENT INCOME (Note 1)
Interest income $309,836 $78,394 $321,624
EXPENSES (Notes 3 and 4)
Investment advisory fee 32,879 9,166 33,671
Custodian fees 1,944 421 2,088
Professional fees 3,855 578 3,803
Salaries and related
expenses 16,100 3,516 17,383
Securities registration
and blue sky expenses 372 1,324 158
Telephone expense 1,134 248 1,227
Data processing and office
equipment expenses 8,225 3,904 7,940
Office and miscellaneous
expenses 4,056 992 3,936
Depreciation and
amortization 464 101 500
Expenses and advisory fee
waived -- (9,166) --
Total expenses 69,029 11,084 70,706
NET INVESTMENT INCOME 240,807 67,310 250,918
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized loss on
investments (268,395) (22,978) (106,727)
Net unrealized appreciation
on investments 464,054 92,714 374,103
NET GAIN ON INVESTMENTS 195,659 69,736 267,376
TOTAL INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $436,466 $137,046 $518,294
Money
Virginia National Market
Portfolio Portfolio Portfolio
INVESTMENT INCOME (Note 1)
Interest income 982,760 $936,384 $151,879
EXPENSES (Notes 3 and 4)
Investment advisory fee 104,190 101,260 23,052
Custodian fees 4,511 4,779 1,313
Professional fees 7,177 7,464 3,081
Salaries and related
expenses 37,517 39,803 10,982
Securities registration
and blue sky 426 6,083 3,684
Telephone expense 2,648 2,812 778
Data processing and
office equipment 14,722 14,769 3,733
Office and miscellaneous
expenses 10,001 10,251 4,016
Depreciation and
amortization 1,080 1,145 316
Expenses and advisory fee
waived -- -- (13,610)
Total expenses 182,272 188,366 37,345
NET INVESTMENT INCOME 800,488 748,018 114,534
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized loss on
investments 274,674) (556,765) --
Net unrealized
appreciation on
investments 1,062,410 1,138,923 17,755
NET GAIN ON INVESTMENTS 787,736 582,158 17,755
TOTAL INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $1,588,224 $1,330,176 $132,289
The Notes to Financial Statements are an integral part of these
statements.
<PAGE>
Statements of Changes in Net Assets
Arizona Portfolio Maryland Portfolio
Six Months Six Months
ended Year ended Year
March 31, Ended March 31, Ended
1995 Sept. 30, 1995 Sept. 30,
(Unaudited) 1994 (Unaudited) 1994
INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM
OPERATIONS
Net investment
income $240,807 $579,256 $67,310 $151,708
Net realized loss
on investments (268,395) (240,762) (22,978) (145,563)
Net unrealized
appreciation
(depreciation) of
investments 464,054 (1,248,861)92,714 (240,115)
Total increase
(decrease) in net
assets resulting
from operations 436,466 (910,367) 137,046 (233,970)
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment
income (240,807) (579,256) (67,310) (151,708)
Net capital gains -- (551,882) -- (5,406)
CAPITAL SHARE
TRANSACTIONS
(Note 6) (1,586,011)(1,614,268)(90,302) 96,826
TOTAL INCREASE
(DECREASE) IN NET
ASSETS (1,390,352)(3,655,773)(20,566) (294,258)
NET ASSETS
Beginning of
period 11,814,857 15,470,630 3,082,615 3,376,873
End of period $10,424,505$11,814,857$3,062,049 $3,082,615
Missouri Portfolio Virginia Portfolio
Six Months Six Months
ended Year ended Year
March 31, Ended March 31, Ended
1995 Sept. 30, 1995 Sept. 30,
(Unaudited) 1994 (Unaudited) 1994
INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM
OPERATIONS
Net investment
income $250,918 $546,716 $800,488 $1,696,068
Net realized loss
on investments (106,727) (209,620) (274,674) (765,109)
Net unrealized
appreciation
(depreciation)
of investments 374,103 (1,117,560)1,062,410 (3,383,279)
Total increase
(decrease) in net
assets resulting
from operations 518,294 (780,464) 1,588,224 (2,452,320)
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment
income (250,918) (546,716) (800,488) (1,696,068)
Net capital gains -- (482,349) -- (2,140,949)
CAPITAL SHARE
TRANSACTIONS
(Note 6) (642,649) (701,239) (2,710,002)(2,253,071)
TOTAL INCREASE
(DECREASE) IN NET
ASSETS (375,273) (2,510,768)(1,922,266)(8,542,408)
NET ASSETS
Beginning of
period 11,490,154 14,000,922 35,549,520 44,091,928
End of period $11,114,881$11,490,154$33,627,254$35,549,520
The Notes to Financial Statements are an integral part of these
statements.
<PAGE>
Statements of Changes in Net Assets
National Portfolio Money Market Portfolio
Six Months Six Months
ended Year ended Year
March 31, Ended March 31, Ended
1995 Sept. 30, 1995 Sept. 30,
(Unaudited) 1994 (Unaudited) 1994
INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM
OPERATIONS
Net investment
income $748,018 $1,513,647 $114,534 $175,951
Net realized loss
on investments (556,765) (1,469,332) -- --
Net unrealized
appreciation
(depreciation)
of investments 1,138,923 (2,561,789) 17,755 494
Total increase
(decrease) in net
assets resulting
from operations 1,330,176 (2,517,474)132,289 176,445
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment
income (748,018) (1,513,647)(114,534) (175,951)
Net capital gains -- (3,338,545) -- --
CAPITAL SHARE
TRANSACTIONS
(Note 6) (1,711,653)(1,040,794)108,416 (4,475,527)
TOTAL INCREASE
(DECREASE) IN NET
ASSETS (1,129,495)(8,410,460)126,171 (4,475,033)
NET ASSETS
Beginning of
period 34,072,199 42,482,659 8,916,340 13,391,373
End of period $32,942,704$34,072,199$9,042,511 $8,916,340
The Notes to Financial Statements are an integral part of these
statements.
<PAGE>
Financial Highlights
Selected data for a share outstanding throughout each period:
Arizona Portfolio
Year Year Year Year Year Year
ended ended ended ended ended ended
Sept. 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30
1995<F6> 1994 1993 1992 1991 1990<F8>
Net asset
value
beginning
of period $9.706 11.208 10.568 10.187 9.703 10.000
Net
investment
income $0.219 0.436 0.490 0.528 0.569 0.590
Net realized
& unrealized
gains
(loss) on
securities $0.246 (1.102) 0.786 0.434 0.484 (0.297)
Total from
investment
operations $0.465 (0.666) 1.276 0.962 1.053 0.293
Distributions
from net
investment
income $(0.219) (0.436) (0.490) (0.528) (0.569) (0.590)
Distributions
from capital
gains -- (0.400) (0.146) (0.053) -- --
Total
distribu-
tions $(0.219) (0.836) (0.636) (0.581) (0.569) (0.590)
Net asset
value end
of period $9.952 9.706 11.208 10.568 10.187 9.703
Total
return 9.78%<F7>(6.20) 12.57 9.74 11.11 3.25<F7>
Net assets
end of
period (in
thousands) $10,425 11,815 15,471 11,911 8,061 3,831
Ratio of
expenses to
average net
assets 1.31%<F7>1.29 1.23 1.15 0.47 --
Ratio of net
investment
income to
average
net assets 4.56%<F7>4.23 4.54 5.14 5.61 6.59<F7>
Portfolio
turnover 17% 67 63 23 57 14
Maryland Portfolio
Year Year Year
ended ended ended
Sept. 30 Sept. 30 Sept. 30
1995<F6> 1994 1993<F9>
Net asset
value
beginning
of period $9.323 10.441 10.000
Net
investment
income $0.211 0.455 0.274
Net realized
& unrealized
gains
(loss) on
securities $0.250 (1.102) 0.441
Total from
investment
operations $0.461 (0.647) 0.715
Distributions
from net
investment
income $(0.211) (0.455) (0.274)
Distributions
from capital
gains -- (0.016) --
Total
distribu-
tions $(0.211) (0.471) (0.274)
Net asset
value end
of period $9.573 9.323 10.441
Total
return 10.10%<F7> (6.33) 11.91<F7>
Net assets
end of
period (in
thousands) $3,062 3,083 3,377
Ratio of
expenses to
average net
assets 0.75%<F7> 0.64 0.20<F7>
Ratio of net
investment
income to
average
net assets 4.58%<F7> 4.60 4.72<F7>
Portfolio
turnover 5% 78 35
Missouri Portfolio
Year Year Year Year Year Year
ended ended ended ended ended ended
Sept. 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30
1995<F6> 1994 1993 1992 1991 1990<F10>
Net asset
value
beginning
of period $9.728 11.173 10.468 10.117 9.684 10.000
Net
investment
income $0.222 0.437 0.494 0.514 0.585 0.580
Net realized
& unrealized
gains
(loss) on
securities $0.265 (1.058) 0.726 0.377 0.433 (0.316)
Total from
investment
operations $0.487 (0.621) 1.220 0.891 1.018 0.264
Distributions
from net
investment
income $(0.222) (0.437) (0.494) (0.514) (0.585) (0.580)
Distributions
from capital
gains -- (0.387) (0.021) (0.026) -- --
Total
distribu-
tions $(0.222) (0.824) (0.515) (0.540) (0.585) (0.580)
Net asset
value end
of period $9.993 9.728 11.173 10.468 10.117 9.684
Total
return 10.26%<F7>(5.80) 11.98 9.06 10.80 2.94<F7>
Net assets
end of
period (in
thousands) $11,115 11,490 14,001 11,023 7,227 4,079
Ratio of
expenses to
average net
assets 1.31%<F7>1.29 1.23 1.18 0.45 --
Ratio of net
investment
income to
average
net assets 4.64%<F7>4.23 4.59 5.05 5.85 6.56<F7>
Portfolio
turnover 2% 52 65 8 33 3
Virginia Portfolio
Year Year Year Year Year Year
ended ended ended ended ended ended
Sept. 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30
1995<F6> 1994 1993 1992 1991 1990
Net asset
value
beginning
of period $10.631 12.372 11.621 11.351 10.832 10.891
Net
investment
income $0.256 0.479 0.569 0.592 0.609 0.624
Net realized
& unrealized
gains
(loss) on
securities $0.282 (1.146) 0.871 0.387 0.519 (0.059)
Total from
investment
operations $0.538 (0.667) 1.440 0.979 1.128 0.565
Distributions
from net
investment
income $(0.256) (0.479) (0.569) (0.592) (0.609) (0.624)
Distributions
from capital
gains -- (0.595) (0.120) (0.117) -- --
Total
distribu-
tions $(0.256) (1.074) (0.689) (0.709) (0.609) (0.624)
Net asset
value end
of period $10.913 10.631 12.372 11.621 11.351 10.832
Total
return 10.25%<F7>(5.67) 12.85 8.92 10.66 5.28<F7>
Net assets
end of
period (in
thousands) $33,627 35,550 44,092 37,421 30,696 24,607
Ratio of
expenses to
average net
assets 1.09%<F7>1.18 1.10 1.13 1.18 1.25
Ratio of net
investment
income to
average
net assets 4.79%<F7>4.23 4.80 5.20 5.47 5.69<F7>
Portfolio
turnover 30% 104 80 74 73 11
National Portfolio
Year Year Year Year Year Year
ended ended ended ended ended ended
Sept. 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30
1995<F6> 1994 1993 1992 1991 1990
Net asset
value
beginning
of period $9.851 11.910 11.329 10.794 10.364 10.597
Net
investment
income $0.223 0.420 0.550 0.605 0.632 0.693
Net realized
& unrealized
gains
(loss) on
securities $0.192 (1.122) 0.793 0.535 0.430 (0.233)
Total from
investment
operations $0.415 (0.702) 1.343 1.140 1.062 0.460
Distributions
from net
investment
income $(0.223) (0.420) (0.550) (0.605) (0.632) (0.693)
Distributions
from capital
gains -- (0.937) (0.212) -- -- --
Total
distribu-
tions $(0.223) (1.357) (0.762) (0.605) (0.632) (0.693)
Net asset
value end
of period $10.043 9.851 11.910 11.329 10.794 10.364
Total
return 8.63%<F7>(6.25) 12.44 10.83 10.50 4.38
Net assets
end of
period (in
thousands) $32,943 34,072 42,483 41,273 40,352 40,360
Ratio of
expenses to
average net
assets 1.16%<F7>1.23 1.10 1.17 1.24 1.24
Ratio of net
investment
income to
average
net assets 4.60%<F7>3.98 4.83 5.47 5.95 6.54
Portfolio
turnover 29% 175 212 114 91 41
Money Market Portfolio
Year Year Year Year Year Year
ended ended ended ended ended ended
Sept. 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30
1995<F6> 1994 1993 1992 1991 1990
Net asset
value
beginning
of period $1.000 1.000 1.000 1.000 1.000 1.000
Net
investment
income $0.012 0.015 0.020 0.030 0.040 0.050
Net realized
& unrealized
gains
(loss) on
securities -- -- -- -- -- --
Total from
investment
operations $0.012 0.015 0.020 0.030 0.040 0.050
Distributions
from net
investment
income $(0.012) (0.015) (0.020) (0.030) (0.040) (0.050)
Distributions
from capital
gains -- -- -- -- -- --
Total
distribu-
tions $(0.012) (0.015) (0.020) (0.030) (0.040) (0.050)
Net asset
value end
of period $1.000 1.000 1.000 1.000 1.000 1.000
Total
return 2.49%<F7>1.97 1.53 2.57 4.13 5.36
Net assets
end of
period (in
thousands) $9,043<F7>8,916 13,391 14,861 17,844 23,463
Ratio of
expenses to
average net
assets 0.81%<F7>0.81 0.81 0.83 0.81 0.81
Ratio of net
investment
income to
average
net assets 2.48%<F7>1.52 1.52 2.55 4.12 5.22
Portfolio
turnover -- -- -- -- -- --
[FN]
<F6>
For the six months ended March 31, 1995 (unaudited)
<F7>
Annualized
<F8>
For the period from October 13, 1989 (inception) to September 30,
1990
<F9>
For the period from February 10, 1993 (inception) to September
30, 1990
<F10>
For the period from October 12, 1989 (inception) to September 30,
1990
[FN]
The Notes to Financial Statements are an integral part of these
statements.
<PAGE>
GIT Tax-Free Trust
Notes to Financial Statements (Unaudited)
March 31, 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 six months ended March 31, 1995,
BFIMC waived $9,166 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 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 six months
ended March 31, 1995, outside trustee fees were $1,200 for the
Arizona,
<PAGE>
Notes to Financial Statements (continued)
Missouri, Virginia, National and Money Market Portfolios. For
the six months ended March 31, 1995, no outside trustee fees were
paid by the Maryland Portfolio. As of March 31, 1995, certain
officers, trustees, companies and individuals affiliated with the
Trust had investments aggregating 0.2%, 0.2% and 0.6%
respectively, of the National, Arizona and Money Market
Portfolios' shares outstanding. As of March 31, 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 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 six months ended
March 31, 1995, expenses of $36,150 for the Arizona Portfolio;
$11,084 for the Maryland Portfolio; $37,035 for the Missouri
Portfolio; $78,082 for the Virginia Portfolio; $87,106 for the
National Portfolio; and $14,293 for the Money Market Portfolio
have been reimbursed to BFIMC under the Services Agreement.
As of March 31, 1995, expenses of $24,723 for the Arizona
Portfolio; $15,422 for the Maryland Portfolio; and $20,968 for
the Missouri Portfolio have been incurred by BFIMC on behalf of
the portfolios, the billings of which have been deferred.
Had BFIMC not waived the billing of 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 net
Ratio of investment
expense to income to
Year ended average average
September 30 net assets net assets
Arizona Portfolio 1991 1.20% 4.88%
1990<F13> 1.92<F12> 4.68<F12>
Maryland
Portfolio <F16> 1995<F11> 1.38%<F12> 3.95%<F12>
1994 1.34 3.90%
1993<F14> 1.74<F12> 3.18<12>
Missouri Portfolio 1991 1.28% 5.02
1990<F15> 2.03<F12> 4.53<F12>
Money Market Portfolio 1995<F11> 1.10%<F12> 2.18%<F12>
1994 1.02 1.31
1993 1.03 1.30
1992 1.02 2.36
1991 1.01 3.91
[FN]
<F11>
For the six months ended March 31, 1995
<F12>
Annualized
<F13>
For the period from October 13, 1989 (inception) to September 30,
1990
<F14>
For the period from February 10, 1993 (inception) to September
30, 1993
<F15>
For the period from October 12, 1989 (inception) to September 30,
1990
<F16>
For the years 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 March 31, 1995, net assets include the
following:
Arizona Maryland Missouri
Portfolio Portfolio Portfolio
Net paid-in capital
on shares of
beneficial
interest $10,830,967 $3,262,789 $11,346,032
Accumulated
undistributed net
realized losses (582,811) (176,270) (331,359)
Net unrealized
appreciation
(depreciation)
of investments 176,349 (24,470) 100,208
Total net assets $10,424,505 $3,062,049 $11,114,881
For federal income tax purposes:
Gross unrealized
appreciation of
investments $254,483 $16,830 $262,424
Gross unrealized
depreciation of
investments 78,134 41,300 162,216
Money
Virginia National Market
Portfolio Portfolio Portfolio
Net paid-in capital
on shares of
beneficial $34,563,672 $35,039,071 $9,027,798
Accumulated
undistributed net
realized losses (1,398,061) (2,247,717) (172)
Net unrealized
appreciation
(depreciation)
of investments 461,643 151,350 14,885
Total net assets $33,627,254 $32,942,704 $9,042,511
For federal income tax purposes:
Gross unrealized
appreciation of
investments $1,090,627 $600,589 $18,097
Gross unrealized
depreciation of
investments 628,984 449,239 3,212
5. Investment Transactions. Purchases and sales of securities
other than short-term securities, for the six months ended March
31, 1995, were as follows:
Arizona Maryland Missouri Virginia National
Portfolio Portfolio Portfolio Portfolio Portfolio
Purchases $1,698,464 $147,524 $192,432 $9,723,967 $8,859,790
Sales 2,843,742 125,270 742,604 11,085,085 10,272,545
See Notes to Portfolio of Investments.
<PAGE>
6. Capital Share Transactions. An unlimited number of capital
shares, without par value, are authorized. Transactions in
capital shares for the six months ended March 31, 1995 and the
year ended September 30, 1994 were as follows:
Arizona Portfolio Maryland Portfolio
Period Ended Period Ended
March 31, Sept.30, March 31, Sept. 30,
1995 1994 1995 1994
In Dollars
Shares sold $385,017 $3,038,623 $460,431 $1,952,141
Shares issued in
reinvestment
of dividends 167,654 877,776 63,006 148,732
Total shares
issued 552,671 3,916,399 523,437 2,100,873
Shares redeemed (2,138,682) (5,530,667) (613,739) (2,004,047)
Net increase
(decrease) $(1,586,011) $(1,614,268) $(90,302) $96,826
In Shares
Shares sold 40,086 289,230 50,043 195,700
Shares issued in
reinvestment
of dividends 17,462 84,476 6,832 15,137
Total shares
issued 57,548 373,706 56,875 210,837
Shares redeemed (227,332) (536,785) (67,682) (203,611)
Net increase
(decrease) (169,784) (163,079) (10,807) 7,226
Missouri Portfolio Virginia Portfolio
Period Ended Period Ended
March 31, Sept.30, March 31, Sept. 30,
1995 1994 1995 1994
In Dollars
Shares sold $555,342 $2,517,679 $2,737,829 $6,960,403
Shares issued in
reinvestment
of dividends 206,621 874,712 685,281 3,454,038
Total shares
issued 761,963 3,392,391 3,423,110 10,414,441
Shares redeemed (1,404,612) (4,093,630) (6,133,112)(12,667,512)
Net increase
(decrease) $(642,649) $(701,239) $(2,710,002)$(2,253,071)
In Shares
Shares sold 57,975 242,656 261,660 606,350
Shares issued in
reinvestment
of dividends 21,527 84,374 64,993 304,237
Total shares
issued 79,502 327,030 326,653 910,587
Shares
redeemed (148,373) (398,901) (589,132) (1,130,528)
Net increase
(decrease) (68,871) (71,871) (262,479) (219,941)
National Portfolio Money Market Portfolio
Period Ended Period Ended
March 31, Sept.30, March 31, Sept. 30,
1995 1994 1995 1994
In Dollars
Shares sold $1,565,173 $8,477,033 $4,382,040 $8,291,730
Shares issued
in reinvestment
of dividends 672,058 4,516,906 109,310 167,837
Total shares
issued 2,237,231 12,993,939 4,491,350 8,459,567
Shares redeemed (3,948,884) (14,034,733) (4,382,934)(12,935,094)
Net increase
(decrease) $(1,711,653) $(1,040,794) $108,416 $(4,475,527)
In Shares
Shares sold 162,273 803,610 4,382,040 8,291,730
Shares issued
in reinvestment
of dividends 69,109 429,466 109,310 167,837
Total shares
issued 231,382 1,233,076 4,491,350 8,459,567
Shares redeemed (410,069) (1,341,342) (4,382,934)(12,935,094)
Net increase
(decrease) (178,687) (108,266) 108,416 (4,475,527)
<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.
GIT
GIT INVESTMENT FUNDS
1655 Fort Myer Drive
Arlington Virginia 22209
