<PAGE> 1
Kemper State Tax-Free
Income Series
Semiannual Report to Shareholders
For the Period Ended
February 28, 1995
(LOGO)
<PAGE> 2
DEAR SHAREHOLDER:
We are pleased to provide you with an overview of the municipal bond market and
the performance of your fund for the six-month period ended February 28, 1995.
- - - - - - --------------------------------------------
KEMPER CALIFORNIA TAX-FREE INCOME FUND
PERFORMANCE & DIVIDEND REVIEW
<TABLE>
- - - - - - ----------------------------------------------------------
<S> <C>
Total Return Performance*
FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 1995
(UNADJUSTED FOR ANY SALES CHARGE)
California Tax-Free Income Fund A 3.37%
California Tax-Free Income Fund B 2.91%
California Tax-Free Income Fund C 2.94%
Lipper California Municipal Funds
Category Average** 2.44%
- - - - - - ----------------------------------------------------------
</TABLE>
Returns are historical and do not represent future performance. Returns and net
asset value fluctuate. Shares are redeemable at current net asset value, which
may be more or less than original cost.
When comparing Kemper California Tax-Free Income Fund A to all other California
Municipal funds in its Lipper** category for the following time periods ended
February 28, 1995, this fund ranked: 1-year, 6 of 83; 5-year, 9 of 44; 10-year,
1 of 16.
The following table shows dividend and yield information for Kemper California
Tax-Free Income Fund as of February 28, 1995.
<TABLE>
<CAPTION>
- - - - - - ------------------------------------------------------------
A SHARES B SHARES C SHARES
-------- --------- --------
<S> <C> <C> <C>
February Dividend: $0.033 $0.0278 $ 0.0277
Net Asset Value: $ 7.22 $ 7.22 $ 7.22
Annualized Distribution
Rate+: 5.48% 4.62% 4.60%
SEC Yield+: 5.19% 4.45% 4.46%
Tax Equivalent Yield: 9.09% 7.79% 7.81%
Based on a marginal income tax rate of 42.9% (combined
California State and federal income tax rate)
- - - - - - ------------------------------------------------------------
</TABLE>
- - - - - - ---------------------------------------
KEMPER FLORIDA TAX-FREE INCOME FUND
PERFORMANCE & DIVIDEND REVIEW
<TABLE>
<S> <C>
- - - - - - ----------------------------------------------------------
Total Return Performance*
FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 1995
(UNADJUSTED FOR ANY SALES CHARGE)
Florida Tax-Free Income Fund A 4.28%
Florida Tax-Free Income Fund B 3.82%
Florida Tax-Free Income Fund C 3.90%
Lipper Florida Municipal Funds
Category Average** 3.11%
- - - - - - ----------------------------------------------------------
</TABLE>
Returns are historical and do not represent future performance. Returns and net
asset value fluctuate. Shares are redeemable at current net asset value, which
may be more or less than original cost.
When comparing Kemper Florida Tax-Free Income Fund A to all other Florida
Municipal funds in its Lipper** category for the following time periods ended
February 28, 1995, this fund ranked: 1-year, 3 of 53; 3-year, 2 of 20.
The following table shows dividend and yield information for Kemper Florida
Tax-Free Income Fund as of February 28, 1995.
<TABLE>
<CAPTION>
- - - - - - ------------------------------------------------------------
A SHARES B SHARES C SHARES
-------- -------- --------
<S> <C> <C> <C>
February Dividend: $ 0.0448 $0.037 $ 0.0375
Net Asset Value: $ 10.12 $10.11 $ 10.11
Annualized Distribution
Rate+: 5.31% 4.39% 4.45%
SEC Yield+: 5.05% 4.23% 4.24%
Tax Equivalent Yield: 8.03% 6.72% 6.74%
Based on a 37.1% marginal federal income tax rate
- - - - - - ------------------------------------------------------------
</TABLE>
- - - - - - ---------------------------------------
KEMPER NEW YORK TAX-FREE INCOME FUND
PERFORMANCE & DIVIDEND REVIEW
<TABLE>
- - - - - - ----------------------------------------------------------
<S> <C>
Total Return Performance*
FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 1995
(UNADJUSTED FOR ANY SALES CHARGE)
New York Tax-Free Income Fund A 2.72%
New York Tax-Free Income Fund B 2.29%
New York Tax-Free Income Fund C 2.24%
Lipper New York Municipal Funds
Category Average** 1.83%
- - - - - - ----------------------------------------------------------
</TABLE>
Returns are historical and do not represent future performance. Returns and net
asset value fluctuate. Shares are redeemable at current net asset value, which
may be more or less than original cost.
When comparing Kemper New York Tax-Free Income Fund A to all other New York
Municipal funds in its Lipper** category for the following time periods ended
February 28, 1995, this fund ranked: 1-year, 4 of 71; 5-year, 4 of 37.
The following table shows dividend and yield information for Kemper New York
Tax-Free Income Fund as of February 28, 1995.
<TABLE>
<CAPTION>
- - - - - - ------------------------------------------------------------
A SHARES B SHARES C SHARES
-------- -------- --------
<S> <C> <C> <C>
February Dividend: $0.048 $ 0.0405 $ 0.0408
Net Asset Value: $10.59 $ 10.59 $ 10.58
Annualized Distribution
Rate+: 5.44% 4.59% 4.63%
SEC Yield+: 5.03% 4.35% 4.36%
Tax Equivalent Yield: 9.03% 7.81% 7.83%
Based on a marginal income tax rate of 44.3% (combined
New York City, New York State and federal income tax
rate)
- - - - - - ------------------------------------------------------------
</TABLE>
- - - - - - ---------------------------------------
KEMPER OHIO TAX-FREE INCOME FUND
PERFORMANCE & DIVIDEND REVIEW
<TABLE>
- - - - - - ----------------------------------------------------------
<S> <C>
Total Return Performance*
FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 1995
(UNADJUSTED FOR ANY SALES CHARGE)
Ohio Tax-Free Income Fund A 3.97%
Ohio Tax-Free Income Fund B 3.67%
Ohio Tax-Free Income Fund C 3.77%
Lipper Ohio Municipal Funds
Category Average** 2.69%
- - - - - - ----------------------------------------------------------
</TABLE>
Returns are historical and do not represent future performance. Returns and net
asset value fluctuate. Shares are redeemable at current net asset value, which
may be more or less than original cost.
1
<PAGE> 3
When comparing Kemper Ohio Tax-Free Income Fund A to all other Ohio Municipal
funds in its Lipper** category for the following time period ended February 28,
1995, this fund ranked: 1-year, 1 of 38.
The following table shows dividend and yield information for Kemper Ohio
Tax-Free Income Fund as of February 28, 1995.
<TABLE>
<CAPTION>
- - - - - - ------------------------------------------------------------
A SHARES B SHARES C SHARES
-------- -------- --------
<S> <C> <C> <C>
February Dividend: $ 0.0426 $ 0.0379 $ 0.0378
Net Asset Value: $ 9.67 $ 9.66 $ 9.67
Annualized Distribution
Rate+: 5.29% 4.71% 4.69%
SEC Yield+
(after expense waiver): 5.27% 4.60% 4.61%
SEC Yield+
(before expense waiver): 4.63% 3.70% 3.77%
Tax Equivalent Yield: 8.99% 7.85% 7.87%
Based on a marginal income tax rate of 41.4% (combined
Ohio State and federal income tax rate)
- - - - - - ------------------------------------------------------------
</TABLE>
- - - - - - ---------------------------------------
KEMPER TEXAS TAX-FREE INCOME FUND
PERFORMANCE & DIVIDEND REVIEW
<TABLE>
<CAPTION>
- - - - - - ----------------------------------------------------------
Total Return Performance*
FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 1995
(UNADJUSTED FOR ANY SALES CHARGE)
<S> <C>
Texas Tax-Free Income Fund A 4.64%
Texas Tax-Free Income Fund B 3.88%
Texas Tax-Free Income Fund C 4.10%
Lipper Texas Municipal Funds
Category Average** 2.30%
- - - - - - ----------------------------------------------------------
</TABLE>
Returns are historical and do not represent future performance. Returns and net
asset value fluctuate. Shares are redeemable at current net asset value, which
may be more or less than original cost.
When comparing Kemper Texas Tax-Free Income Fund to all other Texas Municipal
funds in its Lipper** category for the following time period ended February 28,
1995, this fund ranked: 1-year, 1 of 20.
The following table shows dividend and yield information for Kemper Texas
Tax-Free Income Fund as of February 28, 1995.
<TABLE>
<CAPTION>
- - - - - - ------------------------------------------------------------
A SHARES B SHARES C SHARES
-------- -------- --------
<S> <C> <C> <C>
Federal Dividend: $ 0.0463 $ 0.0387 $ 0.0392
Net Asset Value: $ 10.24 $ 10.23 $ 10.24
Annualized Distribution
Rate+: 5.43% 4.54% 4.59%
SEC Yield+
(after expense waiver): 5.26% 4.49% 4.59%
SEC Yield+
(before expense waiver): 5.02% 4.25% 4.33%
Tax Equivalent Yield: 8.36% 7.14% 7.30%
Based on a 37.1% marginal federal income tax rate
- - - - - - ------------------------------------------------------------
</TABLE>
- - - - - - ---------------------------------------
GENERAL ECONOMIC OVERVIEW
Throughout 1994, rising interest rates dominated most economic discussion and
served to dampen the performance of both the income and stock markets. However,
rates have now stabilized and the markets rebounded in the first quarter of
1995, suggesting a growing comfort with the health of the economy.
Specifically, we believe that the economy is now growing at a moderate pace that
can be sustained. Higher interest rates--and we expect rates to continue to
creep up as the year progresses--appear to be having the effect of keeping
inflation under control. At the same time, rates have not risen so high or so
quickly to suggest a disruption of economic growth.
As long as long-term fixed-income markets are assured of low inflation,
increases in short-term rates should not hurt the performance of the bond
market. In fact, with inflation running at 3 percent or below, real (adjusted
for inflation) rates of return are attractive. In March, for example, a
five-year Treasury note offered a 4.50 percent real rate of
return--significantly higher than the post-World War II average real rate of
return of 1.40 percent. This relationship is a strong positive for fixed-income
investors.
MOST MARKETS REBOUNDED IN THE FIRST QUARTER
Data show the 1994 and first-quarter 1995 comparative total returns for the
domestic and international equity and U.S. and non-U.S. bond markets.
<TABLE>
<CAPTION>
1ST QUARTER
1994 1995
---- -----------
<S> <C> <C>
U.S. Stocks (1) 1.31% 9.73%
International Stocks (2) 8.06% 1.94%
U.S. Government Bonds (3) -2.85% 5.06%
Non-U.S. Government Bonds (4) 5.99% 14.44%
</TABLE>
(1) Standard & Poor's 500, an unmanaged index of common stocks that is generally
considered representative of the U.S. stock market.
(2) Morgan Stanley Capital International EAFE Index, an unmanaged index that is
generally considered a measure of international equities in 15 major world
markets excluding the U.S. and Canada.
(3) Salomon Brothers Broad Investment-Grade Bond Index, including Treasury
issues with a maturity of one year or longer (unmanaged).
(4) Salomon Brothers World Government, Non-U.S. Governments, Index, including
the performance of leading government bond markets excluding the U.S.
(unmanaged).
While there are continuing opportunities for investors, it is important to
recognize that the economic expansion is several months into its cycle.
Industries such as housing and steel, which led the economy out of the
recession, cannot be expected to repeat the strong double-digit growth they
enjoyed in 1994. Now that such cyclical industries have experienced most of
their outperformance, we believe that investors' sights will shift to the
industries that produce more consistent earnings, such as consumer nondurables,
technology and selected capital goods.
2
<PAGE> 4
Picking the right sectors to invest in will be the key challenge for equity
investors during the next few quarters.
Leading international economies are lagging the U.S. economy. Japan and Germany,
whose economies typically follow U.S. growth, are not as robust as in past
cycles. This phenomenon makes international investing very complex currently.
Moreover, conditions in emerging market countries underline the importance of
careful research and experience in understanding how these markets work.
We are calm about what has been described as a dollar crisis. While it's true
that the dollar has depreciated against the Japanese yen and many European
currencies, we note that the dollar has appreciated in value against the
currency of Canada and Mexico, two of our largest trading partners.
Political leadership also has some bearing on the progress of the economy and
the state of the financial markets. In the months preceding a presidential
election year, it has not been uncommon for incumbents to attempt to stimulate
growth. Given our Republican Congress and Democratic President, however, we do
not consider this a foregone conclusion as we move closer to 1996.
With that as an economic backdrop, we encourage you to read the following
detailed report of your fund, including a question-and-answer with your fund's
portfolio manager. Thank you for your continued support. We appreciate the
opportunity to serve your investment needs.
Sincerely,
Stephen B. Timbers
Chief Investment and Executive Officer
April 10, 1995
Stephen Timbers is Chief Executive Officer and
is also Chief Investment Officer of Kemper
Financial Services, Inc. (KFS). KFS and its
affiliates manage approximately $60 billion in
assets, including $42 billion in retail mutual
funds. Timbers is a graduate of Yale
University and holds a M.B.A. from Harvard
University.
* Total return measures net investment income and capital gain or loss from
portfolio investments, assuming reinvestment of all dividends. During the
periods noted, securities prices fluctuated. For additional information, see
the Prospectus and Statement of Additional Information and the Financial
Highlights at the end of this report.
** Lipper Analytical Services, Inc. performance and rankings are based upon
changes in net asset value with all dividends reinvested and do not include
the effect of sales charges and, if they had, results may have been less
favorable. Performance and rankings are historical and do not reflect future
performance.
+ Current annualized distribution rate is the latest monthly dividend shown as
an annualized percentage of net asset value on February 28, 1995.
Distribution rate simply measures the level of dividends and is not a
complete measure of performance. The SEC yield is net investment income per
share earned over the month ended February 28, 1995 shown as an annualized
percentage of the maximum offering price on that date. The tax equivalent
yields for Kemper Ohio Tax-Free Income Fund and Kemper Texas Tax-Free Income
Fund are calculated after the expense waiver.
The exemption for federal and a particular state or local income tax purposes
may not result in an exemption under the tax laws of any other state or local
taxing authority. There is no Florida or Texas income tax for individuals.
Kemper Florida Tax-Free Income Fund shares are expected to be exempt from
Florida intangibles tax but there is no assurance of exemption. A portion of
income may be subject to the alternative minimum tax for certain investors.
Returns and rankings for Kemper Ohio Tax-Free Income Fund and Kemper Texas
Tax-Free Income Fund reflect the effect of a temporary fee waiver and expense
absorption which improved results. Expenses are being gradually reinstated
for these Funds.
3
<PAGE> 5
A PERFORMANCE REVIEW AND AN INTERVIEW WITH PORTFOLIO MANAGER
CHRIS MIER
[PHOTO] Chris Mier joined Kemper Financial Services, Inc. in 1986 and
is now Senior Vice President of KFS and Portfolio Manager of the
Kemper State Tax-Free Funds. Mr. Mier received his B.A. degree in
Economics from the University of Michigan and went on to receive his
M.M. in Finance from the Kellogg Graduate School of Management at
Northwestern University.
Q: The municipal bond market tends to respond to many of the same factors as
the broader bond market. In general, how did the bond market perform during
the six-month period?
A: The bond market had positive performance for the period. In the first three
months interest rates continued to rise because of the market's fear
that the economy's continued strength would result in higher inflation.
However, in December, January and February, interest rates fell with data
that suggested the economy was slowing. Weaker-than-expected gains in
employment, slowing retail sales, inventory accumulation and lower commodity
prices led the bond market to respond positively. The market also reacted
favorably to the assumption that U.S. monetary policy might be put on hold
in response to slower economic growth.
Q: How did municipal bond yields change over the six-month period?
A: On August 31, 1994, the yield on the Revenue Bond Index was 6.46%. By the
end of November, the index had risen to 7.32%, and at the end of February
the Revenue Bond Index was 6.34%. So, as you can see, interest rates were
modestly lower, resulting in slightly higher bond prices. The muni bond
market advanced 2.80% according to the Lehman Brothers Municipal Bond Index.+
Q: Orange County, California filed for bankruptcy on December 6, 1994. What
impact did this have on the municipal market?
A: Orange County's filing for bankruptcy gained national attention due in part
to the size and prominence of Orange County. While this unprecedented event
could have far-reaching importance for the market in the future, the
bankruptcy filing has not affected the pricing structure of the market as a
whole. Securities relating specifically to the filing were, of course,
adversely affected and will continue to be affected as the event unfolds.
Q: Did any of the Kemper State Tax- Free Funds have exposure to Orange County?
A: At the time of the bankruptcy filing, the $1.1 billion Kemper California
Tax-Free Income Fund held only one instrument issued by Orange County and
that issue, with a par value of $2 million, is fully insured. The other
Kemper State Tax-Free Income Funds didn't hold any instruments issued by
Orange County.
Q: Municipal bond supply fell dramatically during 1994. Why did this occur and
how did it affect municipal bond prices?
A: Remember that in 1993, falling interest rates prompted a record number of
municipal bond issuers to advance-refund their older, higher-paying bonds
and replace them with new bonds issued at the prevailing lower rates. Since
most issuers are only allowed one refunding,
4
<PAGE> 6
new issue supply was expected to drop significantly going forward. This was
in fact the case in 1994 when new issuance fell by 44%. In 1995, lower new
issuance is expected to continue, while a record number of bonds are
scheduled to be called by their issuers. As a result municipals are an asset
class where net reduction in supply is creating positive underpinnings. This
is one of the reasons we have a favorable outlook for municipals in 1995.
Q: How did you manage the portfolios in this environment?
A: We entered into the period with the view that interest rates would probably
continue to move higher, so we positioned the fund somewhat defensively to
cushion the funds' net asset values. We also kept larger than normal cash
positions and kept the average maturities of bonds in the portfolio
shorter than usual, since bonds with shorter maturities tend to be less
sensitive to interest rate movements. For example, at the end of September
1994, the average maturities of the Kemper State Tax-Free Income Series was
approximately 15.5 years.
In late November, we became more comfortable with the market, so we lowered
cash positions and reduced the futures hedge positions. This extended the
funds' average maturities to approximately 18 to 19 years, and allowed the
funds to participate in the bond market rally that continued through
February.
Q: What were your specific strategies regarding each state?
A: New York State and New York City are experiencing slower than anticipated
economic growth. In response, we focused on local general obligation bonds
and essential service revenue bonds, which are likely to be insulated
from any potential problems that may face New York State and New York City.
This was also the case in California, where economic growth continues to lag
the national average. In Ohio, we looked for value in A- and BBB-rated
issues, which tend to offer more income than higher-rated issues. In Texas
and Florida we focused on boosting the percentage of discount bonds in the
portfolios in order to make them more sensitive to interest rate declines.
Q: How do you expect the funds to perform in 1995?
A: We think the economy is slowing from the rapid pace of 1994 and that muni
bonds will have a good year. The Fed's tightening process throughout 1994
should now be substantially complete. The Fed has done a fairly good job in
productively raising rates to slow the economy before any severe
inflationary pressure builds. This has created a favorable environment
for bonds.
Municipals should also be supported by a continuation of favorable supply
and demand fundamentals. The downward trend in new issue supply that we have
seen in recent months is expected to continue since most of the issuers
who refund their debt did so during 1993. Additionally, in the coming years,
muni supply should decline when billions of dollars of municipal bonds are
called by their issuers. Demand should increase in the coming year as
investors regain confidence in the bond market. more income than
higher-rated issues. In Texas and Florida we focused on boosting the
percentage of discount bonds in the portfolios in order to make them more
sensitive to interest rate declines.
Q: How do you expect the funds to perform in 1995?
A: We think the economy is slowing from the rapid pace of 1994 and that muni
bonds will have a good year. The Fed's tightening process throughout 1994
should now be substantially complete. The Fed has done a fairly good job in
productively raising rates to slow the economy before any severe
inflationary pressure builds. This has created a favorable environment for
bonds. Municipals should also be supported by a continuation of
favorable supply and demand fundamentals. The downward trend in new issue
supply that we have seen in recent months is expected to continue since most
of the issuers who refund their debt did so during 1993. Additionally, in
the coming years, muni supply should decline when billions of dollars of
municipal bonds are called by their issuers. Demand should increase in the
coming year as investors regain confidence in the bond market.
+ The Lehman Brothers Municipal Bond Index includes approximately 15,000
bonds. To be included in the index a municipal bond must meet the following
criteria: a minimum credit rating of BBB, have been issued as a part of an
issue of at least $50 million, have been issued within the last 5 years,
and have a maturity of at least 2 years. Bond subject to AMT, variable rate
bonds and zero coupon bonds are excluded from the index. Source is Towers
Data Systems.
5
<PAGE> 7
KEMPER CALIFORNIA TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS February 28, 1995
(Dollars in thousands)
<TABLE>
<CAPTION>
ADVANCE REFUNDED OBLIGATIONS SECURED AS TO PRINCIPAL Principal
AND INTEREST BY OBLIGATIONS OF THE UNITED STATES GOVERNMENT Amount Value
<S> <C> <C>
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
BREA Public Financing Authority, Orange County, Redevelopment Project AB,
Revenue, 6.75%, to be called 8-01-01 @ 102 $ 3,885 $ 4,295
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Bakersfield County Waste Water Treatment Plant, Certificates of Participation,
Revenue, 8.00%, to be called 1-01-98 @ 101 1,750 1,914
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Eskaton Properties, Incorporated,
Revenue, 7.45%, to be called 5-01-00 @ 102 4,800 5,074
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Mercy Health Systems,
Revenue, 7.25%, to be called 6-01-99 @ 102 6,900 7,622
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Unihealth America,
Revenue, 7.625%, to be called 10-01-98 @ 102 90 100
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Foothill-DeAnza Community College District, Santa Clara,
Revenue, 7.875%, to be called 6-01-01 @ 102 4,055 4,717
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Fullerton Redevelopment Agency, Local Government Finance Authority,
7.70%, to be called 2-01-99 @ 102 4,360 4,851
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Kaweah Delta Hospital District, Refunding Revenue, 7.25%, to be called 11-01-96 @ 102 5,750 6,102
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Loma Linda, University Medical Center, Revenue, 7.00%, to be called 12-01-00 @ 102 4,005 4,457
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
City of Los Angeles Convention and Exhibit Center, Certificates of Participation,
Revenue, 9.00%, to be called 12-01-05 @ 100 1,000 1,303
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
City of Los Angeles, Municipal Improvement, Revenue, 7.10%, to be called 6-01-99 @ 102 8,450 9,273
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Northern California Power Agency, Hydroelectric Number One,
Revenue, 7.00%, to be called 1-01-16 @ 100 210 240
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Orange Unified School District, Certificates of Participation,
Revenue, 6.875%, to be called 6-01-99 @ 102 2,620 2,853
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Placer County Water Agency, Certificates of Participation, Revenue, 7.70%, to be called 7-01-98
@ 102 1,990 2,199
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Rancho Cucamonga Redevelopment Agency, Rancho Development Project,
Tax Allocation Project, 7.125%, to be called 9-01-99 @ 102 5,410 5,974
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
San Bernardino County, Capital Facilities Project, Certificates of Participation,
Revenue, 6.80%, to be called 8-01-01 @ 102 4,300 4,746
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
City of San Francisco, State Building Authority, Certificates of Participation,
Revenue, 7.375%, to be called 7-01-96 @ 102 9,740 10,267
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
San Joaquin County, Certificates of Participation, Revenue, 6.70%, to be called 5-15-99 @ 102 1,700 1,842
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
San Jose Redevelopment Agency, Revenue, 7.80%, to be called 8-01-96 @ 102 6,500 6,909
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Santa Margarita Water District, General Obligation, 7.30%, to be called 6-01-97 @ 102 1,080 1,159
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Tulare County Public Facilities Corporation, Certificates of Participation,
Revenue, 8.10%, to be called 11-01-97 @ 102 1,000 1,102
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
West Basin Municipal Water District, West Basin Water Reclamation Program,
Certificates of Participation, Revenue, 6.85%, to be called 8-01-00 @ 102 3,500 3,856
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
TOTAL ADVANCE REFUNDED OBLIGATIONS-8.2% 90,855
OTHER OBLIGATIONS
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Antioch Area Public Facilities Financing Agency, Special Tax Bonds, 5.375%, 2013 12,000 11,170
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Bellflower Civic Center and 1989 Capital Improvement,
Refunding Certificates of Participation, Revenue, 7.20%, 2019 1,880 2,023
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Calaveras County Water District, Refunding Certificates of Participation, Revenue, 5.25%, 2012 3,185 2,940
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Educational Facilities Authority, Mills College, Revenue, 6.875%, 2022 1,775 1,792
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Educational Facilities Authority, Pomona College, Revenue, 6.125%, 2008 3,000 3,063
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Adventist Health System/West,
Revenue, 6.50%, 2007 and 2011 5,750 6,021
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, America Baptist Homes West,
Revenue, 7.65%, 2014 4,000 4,221
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Catholic Hospital, Revenue, 5.00%, 2014 17,280 15,316
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Children's Hospital, Revenue, 7.50%, 2020 3,600 3,964
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Daughters of Charity St. Vincent Health
System, Revenue, 9.25%, 2015 2,500 2,665
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Evangelical Lutheran Good Samaritan Society,
Revenue, 5.30%, 2015 6,695 6,098
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 8
(Dollars in thousands)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Kaiser Permanante,
Revenue, 5.45% and 7.00%, 2013 and 2010 $ 5,125 $ 5,134
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Marshall Hospital Health System, Refunding,
Revenue, 5.125%, 2012 3,770 3,181
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Small Facilities Loan,
Insured Health Facility, Revenue, 6.70%, 2011 1,200 1,217
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, Southern California Presbyterian Homes,
Insured Hospital Revenue, 6.70%, 2011 2,000 2,038
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority, UniHealth America, Revenue, 7.625%, 2015 745 811
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Housing Finance Agency, Home Mortgage,
Revenue, 6.875% to 9.20%, 2010 through 2030 28,685 30,255
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California State, General Obligation, 4.75% to 6.50%, 2007 through 2018 21,220 20,223
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California State Department of Water Resources, Central Valley Project,
Water System Revenue, 5.00% to 5.70%, 2008 through 2019 24,505 22,802
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California State Public Works, State Prison - Madera County, Revenue, 7.40%, 2010 3,365 3,746
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California State Public Works, State Prison - Monterey County, Revenue, 6.40%, 2010 4,000 4,201
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California State University, Housing System Revenue, 6.75%, 2009 1,515 1,606
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Statewide Communities Development Authority, Certificates of Participation,
Catholic Healthcare West, Revenue, 5.50%, 2023 2,475 2,257
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Statewide Communities Development Authority, Certificates of Participation,
Cedars-Sinai Medical Center, Revenue, 5.80% to 6.50%, 2000 through 2012 22,205 22,508
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Statewide Communities Development Authority, Eskaton Properties, Incorporated,
Insured Health Facilities, Certificate of Participation, Revenue, 5.80%, 2013 4,000 3,654
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Statewide Communities Development Authority, Oakland Convention Center,
Lease Revenue, 5.50% to 6.00%, 2005 through 2014 2,500 2,607
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Statewide Communities Development Authority, Certificates of Participation,
Sutter Health Obligated Group, Revenue, 5.50%, 2023 4,500 4,103
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
California Statewide Communities Development Authority, United Western Medical Centers,
Insured Certificates of Participation, Revenue, 6.80%, 2009 4,245 4,345
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Calleguas Las Virgines, Public Financing Authority, Municipal Water Revenue, 5.125%, 2014 3,135 2,817
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
City of Carson Redevelopment Agency, Project Number One, Tax Allocation,
Revenue 5.625% and 6.00%, 2008 and 2016 4,000 3,648
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Central Valley Financing Authority, Carson Ice-Gen Project, Cogeneration Project,
Revenue, 6.00% to 6.20%, 2009 through 2020 13,200 12,457
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Cerritos Public Financing Authority, Los Cerritos Redevelopment Project,
Revenue, 6.00% and 6.05%, 2013 and 2020 15,455 14,695
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Coalinga Public Financing Authority, Revenue, 5.50%, 2014 4,330 4,060
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Concord Redevelopment Agency, Tax Allocation, Revenue, 8.00%, 2018 40 44
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Contra Costa County, County Public Facilities Corporation,
Certificates of Participation, Revenue, 7.80%, 2005 1,250 1,393
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Contra Costa County, Home Mortgage, Revenue, 7.75%, 2022 2,715 3,322
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Contra Costa Water District, Water Revenue, 5.75% and 6.00%, 2014 and 2013 12,180 11,975
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Coronado Community Development Agency, Tax Allocation, Revenue, 7.25%, 2012 4,500 4,847
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
City of Costa Mesa Redevelopment Agency, Downtown Redevelopment Project,
Tax Allocation, Revenue, 5.625%, 2017 3,750 3,216
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Davis State Unified School District Community Facilities, Revenue, 6.10%, 2023 2,150 1,942
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Duarte, City of Hope National Medical Center, Certificates of Participation,
Revenue, 6.125% and 6.25%, 2013 and 2023 27,000 24,613
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
East Bay Municipal Utility District, Special Revenue, 5.00%, 2015 2,600 2,263
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
East Bay Municipal Utility District, Water System, Subordinate Revenue, 5.00%, 2014 4,500 3,980
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Emeryville, California Public Financing Authority, Redevelopment Project Revenue, 6.50%, 2021 9,000 9,005
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Encina Financing Joint Powers Authority, Wastewater Revenue, 6.875%, 2011 3,000 3,166
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Encinitas Public Financing Authority, San Dieguito Water District, Water Revenue, 5.00%, 2013 2,135 1,902
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Fontana Public Financing Authority, Tax Allocation, Revenue, 7.00%, 2021 3,900 3,920
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Foothill-DeAnza Community College District, DeAnza Campus Center Project,
Certificates of Participation, Revenue, 7.35%, 2007 1,700 1,838
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Fresno County Water System Revenue, 5.875%, 2020 7,140 6,988
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 9
(Dollars in thousands)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Fresno Health Facilities, Holy Cross Health System, St. Agnes Medical Center,
Revenue, 6.50% and 6.625%, 2011 and 2021 $ 3,500 $ 3,519
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Fresno Health Facilities, Holy Cross Health System, Revenue, 5.625%, 2015 2,000 1,802
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Garden Grove, Agency Community Development, Community Project,
Tax Allocation, Revenue, 5.875%, 2023 8,865 7,806
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Garden Grove Public Financing Authority, Water Services Capital Improvement,
Revenue, 5.25%, 2015 4,390 3,982
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Hawthorne Community Redevelopment Agency, Tax Allocation, Revenue, 6.625%, 2014 2,000 1,973
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Hollister Joint Powers Financing Authority, Sewer System Improvement,
Revenue, 5.90%, 2023 9,655 8,346
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Inglewood, Civic Center Improvement Project, Certificates of Participation,
Revenue, 6.50% to 7.00%, 2011 through 2021 7,025 7,064
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Inglewood Public Financing Authority, Manchester and North Inglewood Industrial Park
Redevelopment Projects, Revenue, 7.00%, 2022 9,745 9,767
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Irvine Ranch, Water District Joint Powers Agency, Revenue, 7.875%, 2023 5,000 5,241
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lemon Grove Community Development Agency, Tax Allocation,
Revenue, 6.65% and 6.90%, 2006 and 2020 1,500 1,483
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Loma Linda, University Medical Center, Revenue, 5.00% to 7.00%, 2013 through 2022 15,795 14,542
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Long Beach, Certificates of Participation, Airport Project, Revenue, 5.00%, 2016 4,750 4,157
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Long Beach Harbor Department, Revenue, 7.25%, 2019 8,000 8,350
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Long Beach Health Care Systems, Sisters of Charity, Revenue, 6.50%, 2015 4,000 4,016
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Los Angeles, General Obligation, 5.25%, 2011 6,175 5,616
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Los Angeles, Department of Water and Power,
Revenue, 4.75% to 5.25%, 2013 through 2026 41,585 35,078
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Los Angeles, Harbor Department, Revenue, 8.70%, 2015 2,500 2,789
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Los Angeles, Wastewater System, Revenue, 4.70% to 6.625% , 2012 through 2024 40,820 38,305
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Los Angeles County, Metropolitan Transportation Authority, Sales Tax Revenue, 4.75%, 2018 11,600 9,790
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Los Angeles County Public Works Financing Authority, County Flood Control District,
Capital Construction, Revenue, 5.00%, 2011 and 2017 35,240 31,061
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Los Angeles County Public Works Financing Authority, Lease Revenue, 4.75%, 2013 10,000 8,563
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Los Angeles County Public Works Financing Authority, Regional Parks, Revenue, 6.00%, 2015 15,250 15,054
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Los Angeles County, Sanitation Districts Financing Authority,
Revenue, 5.25%, 2019 9,000 7,959
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Los Angeles County, Transportation Commission,
Sales Tax Revenue, 6.50% to 7.40%, 2003 through 2019 23,455 24,517
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Los Banos, Certificates of Participation, Revenue, 6.00%, 2019 2,250 1,975
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Martinez, Multiple Lenders, Home Mortgage Revenue, 10.375%, 2002 35 44
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Metropolitan Water District of Southern California,
Waterworks Revenue, 5.50% to 6.625%, 2012 through 2019 16,500 15,416
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Montebello Community Redevelopment Agency, Montebello Hills Redevelopment, Tax Allocation,
Revenue, 7.50%, 2010 3,750 4,054
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Moreno Valley, Towngate Community Facilities District 87-1, Improvement Area No. 1,
Special Tax Revenue, 7.125%, 2023 2,810 2,768
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Moreno Valley, Towngate Community Facilities, Special Tax Revenue, 6.50%, 2009 3,670 3,693
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Morgan Hill Redevelopment Agency, Multifamily Housing, La Crosse Village Project,
Revenue, 9.30%, 2027 1,000 1,042
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Morgan Hill Redevelopment Agency, Ojo De Agua Community Development Project,
Tax Allocation, Revenue, 5.50%, 1999 3,725 3,726
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Northern California Power Agency, Geothermal Project Number 3,
Revenue, 7.00%, 2007 8,000 8,217
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Northern California Power Agency, Hydroelectric Number One, Revenue, 7.15%, 2024 9,000 9,248
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Oakland, Housing Finance Revenue, 7.10%, 2010 2,190 2,294
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Oakland, Pension Financing Revenue, 7.60%, 2021 26,075 28,442
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Orange County, Civic Center, Certificates of Participation, Revenue, 6.625%, 2010 2,000 2,028
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Oxnard, Financing Authority, Lease Revenue, 5.375%, 2008 2,000 1,924
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Pinole Redevelopment Agency, Pinole Vista Redevelopment Project, Tax Allocation,
Revenue, 5.60%, 2017 2,000 1,772
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 10
(Dollars in thousands)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Pleasanton, Joint Powers Finance Authority, Revenue, 6.00% and 6.15%, 2005 and 2012 $ 16,815 $ 16,619
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Port of Oakland, Revenue, 7.60%, 2016 8,520 9,015
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Rancho Cucamonga Redevelopment Agency, Rancho Development Project, Tax Allocation,
Revenue, 5.00%, 2015 2,000 1,755
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Redbud Hospital District, Insured Health Facility, Revenue, 7.90%, 2011 1,000 1,050
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Reedley, Sierra View Homes, Inc., Insured Certificates of Participation, Revenue, 7.60%, 2021 4,195 4,431
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Riverside, Community College District, Certificates of Participation, Revenue, 5.80%,
2017 9,940 9,012
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Riverside County, Public Facilities Financing, Certificates of Participation,
Revenue, 6.875% and 7.875%, 2009 and 2015 7,250 7,599
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Riverside County Transportation Commission, Revenue, 6.50%, 2009 9,500 9,755
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Riverside, Electric Revenue, 5.00%, 2013 8,885 7,780
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Riverside, Redevelopment Agency Lease Revenue, 6.00%, 2015 5,100 5,108
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Riverside, Sewer Revenue, 5.00%, 2010 1,055 973
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Rohnert Park, Public Safety Facilities Project, Certificates of Participation, 4.75%, 2017 1,630 1,359
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Sacramento, Finance Authority, Lease Revenue, 5.00% and 5.375%, 2014 14,000 12,385
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Sacramento, Municipal Utility District,
Electric Revenue, 5.25% to 6.75%, 2006 through 2015 29,380 28,857
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Sacramento, Redevelopment Agency, Merged Downtown Redevelopment Project, Tax
Allocation, Revenue, 6.50%, 2013 4,000 4,134
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Sacramento County, Sanitation Districts Financing Authority, Revenue, 5.00%, 2016 12,000 10,304
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
San Bernardino Joint Powers Financing Authority, Lease Revenue, 7.15%, 2013 4,250 4,561
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of San Bernardino, Sisters of Charity Health Care System,
Revenue, 6.50% to 7.00%, 2011 through 2021 18,750 19,304
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
San Bernardino County, West Valley Detention Center, Certificates of Participation,
Revenue, 6.50%, 2012 8,000 8,313
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
San Bernardino County, Water Facilities Project, Certificates of Participation, Revenue, 6.75%,
2010 1,000 1,038
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of San Buenaventura, Water Revenue, 4.75%, 2013 3,430 2,936
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
San Diego, Gas and Electric, Industrial Development Revenue, 5.90%, 2018 11,000 10,767
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
San Diego, Misdemeanor Pre-Arraignment Detention Facility, Certificates of Participation,
Revenue, 8.00%, 2002 6,775 7,072
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City and County of San Francisco, International Airport, Revenue, 6.125% to 6.30%, 2009 through
2011 10,650 10,933
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City and County of San Francisco, Library Facilities Project, General Obligation, 6.25%, 2011 1,540 1,569
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City and County of San Francisco, Moscone Convention Center, Revenue, 6.75%, 2015 2,200 2,334
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City and County of San Francisco, Public Improvement, Revenue, 5.50%, 2012 4,625 4,406
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City and County of San Francisco, Public Safety Improvement Project, General Obligation, 6.25%,
2011 1,970 2,007
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City and County of San Francisco, Redevelopment Agency, Hotel Tax, Revenue, 6.75%, 2015 3,705 3,937
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City and County of San Francisco, Redevelopment Financing Authority, Redevelopment Project,
Revenue, zero coupon and 5.25%, 2013 and 2021 15,300 12,463
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City and County of San Francisco, Sewer, Revenue, 5.375% and 6.00%, 2011 and 2016 9,245 8,779
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of San Francisco, General Obligation, 6.50%, 2010 1,000 1,031
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
San Jose Financing Authority, Convention Center Project, Revenue, 6.25%, 2008 5,795 5,860
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
San Jose Redevelopment Agency, Tax Allocation, Revenue, 5.75%, 2011 7,555 7,290
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Santa Barbara County, Revenue, Montecito Retirement, Certificates of Participation,
Revenue, 5.75% and 5.80%, 2013 and 2018 5,650 5,071
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Santa Clara, Redevelopment Agency, Bayshore North Project, Tax Allocation, Revenue, 5.75%, 2014 2,700 2,623
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Santa Clarita Public Financing Authority, Local Agency Revenue, 6.70% and 6.75%, 2011 and 2021 4,250 4,329
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Santa Cruz County Housing Authority, Multifamily Housing, Revenue, 7.75%, 2023 2,000 2,148
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Santa Maria, Redevelopment Agency Revenue, Town Center and West Side Parking Facility,
Revenue, 5.00%, 2016 7,180 6,292
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Santa Rosa High School District, General Obligation, 5.90%, 2014 1,530 1,519
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Snowline Joint Unified School District, 1993 Family Projects, Certificates of Participation,
Revenue, 6.30% and 6.40%, 2011 and 2018 3,695 3,608
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
South San Francisco, Capital Improvement Financing Authority, Conference Center Project,
Revenue, 6.125%, 2018 1,925 1,755
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 11
(Dollars in thousands)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Southern California Home Financing Authority, Single Family Mortgage,
Revenue, 6.75% and 7.35%, 2022 and 2024 $ 1,565 $ 1,616
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Southern California Public Power Authority, Mead Adelanto Project, Revenue, 4.75%, 2016 5,000 4,205
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Southern California Public Power Authority, Power Project Revenue, 5.00%, 2015 3,650 3,205
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Torrance Memorial Hospital Medical Center, Revenue, 6.75%, 2012 5,000 5,048
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
University of California, Housing Systems, Revenue, 5.00%, 2013 4,000 3,534
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
University of California, Multiple Purpose Projects,
Revenue, 4.75% to 5.25%, 2012 through 2023 39,995 34,279
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Victor Valley Community College District, Certificates of Participation, Revenue, 6.875%, 2023 8,705 8,720
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
West and Central Basin Financing Authority, Revenue, 5.60%, 2002 250 255
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Western Placer Unified School District, Election of 1993, General Obligation,
zero coupon, 2011 1,590 592
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Westminster Redevelopment Agency, Westminster Commercial Redevelopment Project, Tax Allocation,
Revenue, 7.30%, 2021 2,500 2,542
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Yorba Linda, Redevelopment Agency Tax Allocation, Revenue, 5.25%, 2013 2,825 2,581
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Yosemite Community College District, Certificates of Participation, Revenue, 7.75%, 2011 1,665 1,764
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER OBLIGATIONS-90.0% 1,003,897
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL OBLIGATIONS-98.2%
(Cost: $1,057,485) 1,094,752
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET INSTRUMENTS-.5%
Yield--3.75% to 4.10%
Due--March 1995
(Cost: $5,800) 5,800 5,800
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-98.7%
(Cost: $1,063,285) 1,100,552
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES-1.3% 14,175
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS-100% $1,114,727
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
10
<PAGE> 12
KEMPER FLORIDA TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS February 28, 1995
(Dollars in thousands)
<TABLE>
<CAPTION>
ADVANCE REFUNDED OBLIGATIONS SECURED AS TO PRINCIPAL AND Principal
INTEREST BY OBLIGATIONS OF THE UNITED STATES GOVERNMENT Amount Value
<S> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Charlotte County, Utility System, Revenue, 6.875%, to be called 10-01-01 @ 102 $ 750 $ 831
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Dunedin, Mease Health Care, Revenue, 6.75%, to be called 11-15-01 @ 102 750 831
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Hollywood, Water and Sewer Revenue, 6.875%, to be called 10-01-01 @ 102 1,000 1,114
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Jacksonville Beach, Utility Revenue, 6.75%, to be called 10-01-01 @ 102 1,000 1,107
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Kissimmee Utility Authority, Electric System Improvement and Refunding Revenue,
6.50%, to be called 10-01-01 @ 102 2,750 3,007
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Volusia County Health Facilities Authority, Memorial Health Systems,
Hospital Facilities Revenue, 8.25%, to be called 6-01-00 @ 102 1,940 2,256
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
West Palm Beach Community Redevelopment Agency,
Redevelopment Revenue, 6.75%, to be called 3-01-02 @ 101 1,025 1,126
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ADVANCE REFUNDED OBLIGATIONS-8.4% 10,272
OTHER OBLIGATIONS
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Broward County, North Site Project, Resource Recovery Revenue, 7.95%, 2008 915 1,001
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Broward County, School District of Broward County, General Obligation, 6.00% and 5.70%, 2007 and
2008 5,250 5,442
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Broward County, South Site Project, Resource Recovery Revenue, 7.95%, 2008 970 1,061
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Charlotte County, Utility System, Refunding Revenue, 5.25%, 2012 750 706
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Charlotte County, Utility System, Revenue, 6.75%, 2013 250 269
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Clay County, Utilities System, Revenue, 5.00%, 2013 250 224
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Collier County Special Assessment, Pine Naples, Revenue, 5.60%, 2013 1,165 1,072
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Collier County, Water and Sewer District, Refunding Revenue, 5.25%, 2013 2,000 1,860
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Dade City Governmental Leasing Corporation, Department of Health and Rehabilitative Services,
Revenue, 9.00%, 2020 1,025 1,088
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Dade County Housing Finance Authority, Single Family Mortgage, Revenue, 7.25%, 2023 370 386
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Dade County Public Facilities, Jackson Memorial Hospital, Refunding Revenue, 4.875%, 2015 3,500 3,045
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Dade County Water and Sewer System, Refunding Revenue, 5.00%, 2013 1,900 1,699
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Dunedin City, Utility System Refunding Revenue, 4.50%, 2014 1,770 1,483
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Duval County Housing Finance Authority, GNMA Mortgage-Backed Securities Program,
Single Family Mortgage Revenue, 7.25%, 2019 550 578
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Escambia County Housing Finance Authority, Multi-County Program,
Single Family Mortgage Revenue, 6.90%, 2020 and 2021 3,000 3,091
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Escambia County Pollution Control, Champion International, Revenue, 5.875%, 2022 2,000 1,781
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
First Florida Governmental Financing Commission, Revenue, 6.30%, 2006 1,000 1,072
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Florida Housing Finance Agency, GNMA Collateralized Home Ownership, Revenue, 7.90%, 2022 1,540 1,627
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Florida State Board of Education, Public Education Capital Outlay, Refunding Revenue, 7.25%, 2023 390 426
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Florida State Department of Natural Resources, Revenue, 6.25% and 6.75%, 2007 and 2013 2,000 2,116
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Florida State Division of Facilities Maintenance, Facilities Pool Refunding Revenue, 5.40%, 2010 3,000 2,931
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Florida State Housing Finance Authority, Single Family Mortgage, Refunding Revenue, 6.55%, 2017 1,725 1,748
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Florida State Municipal Power, St. Lucie Project, Refunding Revenue, 5.50%, 2012 500 487
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Gainesville, Utility System Revenue, 6.50%, 2010 1,370 1,482
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Greater Orlando Aviation Authority, Airport Facilities Revenue, 8.375%, 2016 545 605
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Halifax Hospital Medical Center, Hospital Revenue, 6.75%, 2006 3,475 3,777
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Hillsborough County Aviation Authority, Tampa International Airport,
Revenue, 5.50% and 6.90%, 2013 and 2011 1,945 2,000
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Hillsborough County Housing Finance Authority, Single Family Mortgage Revenue, 7.30%, 2022 345 362
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Hillsborough County, Utility Refunding Revenue, 7.00%, 2014 1,325 1,378
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Jacksonville Capital Improvement, Revenue, 5.50%, 2014 and 2019 2,500 2,381
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Jacksonville Electric Authority, Saint Johns River Power Park System, Refunding Revenue, 5.50%,
2013 3,000 2,862
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Jacksonville Health Facilities Authority, Memorial Medical Center Project, Revenue, 6.75%, 2011 2,000 2,131
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Kissimmee Utility Authority, Electric System Improvement and Refunding Revenue,
5.50% and 5.25%, 2015 and 2018 6,465 6,085
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lake County, NRG/Recovery Group Project, Resource Recovery Revenue, 5.95%, 2013 3,120 2,851
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lakeland, Water & Electric, Revenue, 5.75%, 2019 1,400 1,350
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Leesburg, Regional Medical Center Project, Hospital Refunding Revenue, 5.70%, 2018 1,000 841
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Manatee County, General Obligation, 4.75%, 2013 1,000 869
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 13
(Dollars in thousands)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Manatee County, Public Utilities, Revenue Refunding, 5.00%, 2013 $2,000 $ 1,798
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Martin County, Industrial Development Authority, Indiantown Cogeneration, L.P. Project,
Refunding Revenue, 7.875%, 2025 2,325 2,478
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Miami Beach Redevelopment Agency, City Center/Historic Convention Village,
Tax Increment Revenue, 5.875%, 2022 1,500 1,380
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
North Broward Hospital District, Refunding Revenue, 6.50%, 2012 1,000 1,046
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
North Miami, Johnson and Wales University Project,
Educational Facilities Revenue, 6.10% and 6.125%, 2013 and 2020 4,785 4,703
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Orange County Housing Finance Authority, Single Family Mortgage, Revenue, 6.75%, 2018 3,600 3,709
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Orange County, Sales Tax Refunding Revenue, 5.375%, 2024 3,500 3,184
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Orlando Utilities Commission, Water and Electric, Revenue, 5.50%, 2020 2,500 2,313
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Orlando and Orange County Expressway Authority, Junior Lien,
Refunding Revenue, 5.95% and 6.50%, 2023 and 2012 5,000 4,916
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Palm Bay, Utility Corporation Project, Utility System Refunding Revenue, 5.00%, 2015 2,500 2,220
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Palm Beach County, Criminal Justice Facilities, Revenue, 7.20%, 2015 110 129
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Palm Beach County, Solid Waste Authority, Revenue, 8.75%, 2010 245 271
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Pasco County, Solid Waste Disposal and Resource Recovery System, Revenue, 7.80%, 2011 345 377
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Pembroke Pines, Consolidated Utility Systems, Revenue, 6.25%, 2011 1,150 1,191
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Pinellas County, Pollution Control, Florida Power Corporation, Revenue, 7.20%, 2014 2,000 2,122
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Pinellas Park, Public Improvement Refunding, Revenue, 5.00%, 2013 1,000 898
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Reedy Creek Improvement District, Refunding Revenue, 5.00%, 2019 2,000 1,749
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
St. Petersburg Health Facilities Authority, St. Anthony Health Care Center,
Revenue, 7.00% and 6.75%, 2015 and 2021 1,500 1,596
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Sarasota, Water and Sewer System, Refunding Revenue, 4.50%, 2016 3,000 2,456
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Sunrise, Public Facilities, Revenue, 6.50%, 2007 1,000 1,084
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Village Center Community Development District Utility, Revenue, 5.00%, 2013 2,500 2,242
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority, General Obligation Matching Fund Loan, Revenue, 7.25%,
2018 2,100 2,173
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER OBLIGATIONS-89.1% 108,202
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-97.5%
(Cost: $114,441) 118,474
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES-2.5% 3,010
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS-100% $ 121,484
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolio of Investments.
12
<PAGE> 14
KEMPER NEW YORK TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS February 28, 1995
(Dollars in thousands)
<TABLE>
<CAPTION>
ADVANCE REFUNDED OBLIGATIONS SECURED AS TO PRINCIPAL Principal
AND INTEREST BY OBLIGATIONS OF THE UNITED STATES GOVERNMENT Amount Value
<S> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Battery Park City Authority, Revenue, 8.625%, to be called 6-01-0 @ 100 $ 10 $ 12
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Monroe County, Public Improvement, General Obligation, 7.00%, to be called 6-01-98 @ 102 825 892
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Fordham University, Revenue, 7.20%, to be called 7-01-00 @
102 4,210 4,700
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Manhattanville College, Revenue, 7.50%, to be called 7-01-00
@ 102 560 633
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, State University Educational Facilities,
Revenue, 7.25%, to be called 5-15-00 @ 102 1,545 1,725
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, State University Educational Facilities,
Revenue, 7.25%, to be called 5-15-02 @ 102 155 177
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Buffalo General Hospital,
Revenue, 7.60%, to be called 8-15-98 @ 102 250 276
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home,
Revenue, 7.70%, to be called 8-15-00 @ 102 4,000 4,561
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Mental Health Service Facilities
Improvement,
Revenue, 7.75%, to be called 2-15-00 @ 102 505 572
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Mental Health Service Facilities
Improvement,
Revenue, 7.875%, to be called 8-15-00 @ 102 2,060 2,367
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, St. Mary's Hospital,
Revenue, 8.25%, to be called 11-1-95 @ 102 50 52
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Niagara Falls Bridge Commission, Toll Bridge System, Revenue, 6.30%, to be called 10-01-02 @ 102 2,450 2,663
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ADVANCE REFUNDED OBLIGATIONS-5.8% 18,630
OTHER OBLIGATIONS
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Battery Park City Authority, Refunding Revenue, 5.00%, 2013 6,935 5,912
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Buffalo Municipal Water Finance Authority, Water System, Revenue, 5.00%, 2012 2,900 2,633
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Clifton Park Water Authority, Water System Refunding Revenue, 5.00%, 2014 and 2018 3,250 2,870
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Dutchess County Resource Recovery Agency, Solid Waste Management System, Revenue, 7.50%, 2009 2,000 2,196
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Grand Central District Management Association, Business Improvement, Refunding Revenue, 5.125%,
2014 3,000 2,638
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, Commuter and Transit Facilities,
Revenue, 4.75% to 6.125%, 2011 through 2019 1,685 1,590
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Monroe County, Public Improvement, General Obligation, 7.00%, 2008 and 2009 25 26
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Municipal Assistance Corporation for the City of New York, Revenue, 7.625% and 7.750%, 2008 4,360 4,819
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Nassau County, General Obligation, 5.70%, 2013 1,360 1,336
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Nassau County, Sewer Districts, Refunding Revenue, 5.40%, 2012 2,000 1,904
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New Castle, Public Improvement Refunding Revenue, 4.75%, 2009 through 2011 925 822
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York City, Civil Facilities (USTA National Tennis Center Inc. Project), Revenue, 6.375%,
2014 6,500 6,675
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York City, General Obligation, 6.25% to 8.00%, 1998 through 2008 3,040 3,289
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York City, Education Construction Fund, Revenue, 5.50%, 2011 1,500 1,449
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York City, Health and Hospitals Corporation, Revenue, 5.75%, 2022 3,000 2,858
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York City Housing Development Corporation, Multi-Family Mortgage, Revenue, 6.55%, 2015 2,500 2,540
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York City Housing Development Corporation, Multi-Unit Mortgage, Revenue, 7.30%, 2010 8,800 9,382
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York City Municipal Water Finance Authority, Water and Sewer System,
Revenue, 5.50% to 7.00%, 2015 through 2020 12,020 12,175
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York City Transit Authority, Livingston Plaza Project, Refunding Revenue, 5.40%, 2018 5,530 5,088
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, City University System, Revenue, 7.00%, 2009 2,200 2,357
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Cornell University, Revenue, Revenue, 7.375%, 2020 and 2030 4,000 4,302
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Court Facilities, Lease Revenue, 5.50%, 2010 1,000 928
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Fordham University, Revenue, 5.75% and 7.20%, 2015 6,490 6,415
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Ideal Senior Living Center, Revenue, 7.625%, 2028 400 431
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Judicial Lease Facility, Revenue, 7.375%, 2016 120 140
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, March of Dimes Birth Defect Foundation, Revenue, 5.60%, 2012 750 737
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Menorah Campus, Inc., Revenue, 7.30% and 7.40%, 2016 and
2031 3,900 4,212
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Mount Sinai School of Medicine,
Revenue, 5.00% and 5.15%, 2013 and 2024 9,055 8,099
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Rockefeller University, Revenue, 7.375%, 2014 1,000 1,078
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Special Act School Districts Program, Revenue, 7.00%, 2013 3,300 3,528
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 15
(Dollars in thousands)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, State University Educational Facilities,
Revenue, 5.25% to 7.50%, 2008 through 2019 $ 13,050 $ 12,891
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, St. Vincent's Hospital and Medical Center, Revenue, 7.375%,
2011 2,500 2,723
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, University of Rochester, Revenue, 6.50%, 2009 1,200 1,234
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Upstate Community Colleges,
Revenue, 5.75% to 5.95%, 2006 through 2010 7,370 7,022
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Energy Research and Development Authority, Brooklyn Union Gas Company,
Revenue, 7.00% and 7.125%, 2020 2,345 2,411
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Energy Research and Development Authority, Brooklyn Union Gas Company,
Revenue, 5.60%, 2025 3,015 2,777
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Energy Research and Development Authority, Commonwealth Edison Company,
Refunding Revenue, 5.25%, 2020 4,800 4,299
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Energy Research and Development Authority, Consolidated Edison Company of New
York, Inc., Revenue, 7.50% and 7.75%, 2025 and 2024 5,900 6,184
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Environmental Facilities Corporation, Huntington Resource Recovery Project,
Revenue, 7.50%, 2012 8,245 8,922
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Environmental Facilities Corporation, State Park Infrastructure, Revenue, 5.75%,
2008 1,000 958
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Environmental Facilities Corporation, State Water Pollution Control,
Revolving Fund Revenue, 6.50% to 7.25%, 2010 through 2014 5,500 5,776
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State, Environmental Quality, General Obligation, 6.50%, 2011 4,260 4,448
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Housing Finance Agency, Multi-Family Mortgage Revenue, 6.95%, 2012 1,500 1,581
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Housing Finance Agency, Service Contract Obligation, Revenue, 7.25% and 7.30%,
2012 4,000 4,254
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Housing Finance Agency, State University Construction, Revenue, 8.00%, 2011 200 242
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Housing Finance Agency, West-H.E.L.P. Housing, Revenue, 7.55%, 2002 4,220 4,428
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Local Government Assistance Corporation, Revenue, 6.75% to 7.00%, 2005 through
2009 5,990 6,479
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Albany Medical Center Hospital, Revenue,
8.00%, 2028 1,085 1,193
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Beth Israel Medical Center, Revenue,
5.00%, 2013 3,750 3,355
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Booth Silvercrest Nursing Home, Revenue,
7.60%, 2029 2,000 2,144
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Good Samaritan Hospital, Revenue, 7.625%,
2023 1,000 1,072
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Long Beach Memorial Hospital, Revenue,
7.80%, 2025 1,000 1,093
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Mental Health Service Facilities
Improvement, Revenue, 5.25% to 7.875%, 2014 through 2022 12,420 12,126
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Montefiore Medical Center, Revenue,
7.25%, 2024 2,000 2,108
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, New York Hospital,
FHA Insured Mortgage Revenue, 6.75%, 2014 1,000 1,059
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Presbyterian Hospital, Revenue, 7.875%,
2007 500 537
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Mortgage Agency, Homeowner Mortgage, Revenue, 6.90% to 8.30%, 2009 through 2022 9,060 9,559
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Power Authority, General Purpose, Refunding Revenue, 5.00% and 8.00%, 2014 and
2017 7,320 7,528
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Thruway Authority, General Revenue, 5.75%, 2019 5,070 4,879
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Thruway Authority, Local Highway and Bridge Service Contract,
Revenue, 5.75% and 7.25%, 2013 and 2010 5,480 5,505
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Urban Development Corporation, Correctional Facilities,
Revenue, 5.25% to 5.70%, 2012 through 2018 9,500 8,989
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
New York State Urban Development Corporation, Syracuse University, Center for Science and
Technology, Revenue, 7.75%, 2008 200 212
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Niagara County, Water Treatment Plant, General Obligation, 7.00% and 7.25%, 2012 and 2011 1,215 1,322
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Niagara Falls Bridge Commission, Toll Bridge System, Refunding Revenue, 5.25%, 2015 1,215 1,121
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Niagara Frontier Transportation Authority, Greater Buffalo International Airport,
Airport Revenue, 6.00% and 6.125%, 2014 6,355 6,388
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
North Country New York Development Authority, Solid Waste Management System, Revenue, 6.75%,
2012 3,200 3,208
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
North Hempstead, Solid Waste Management Authority,
Solid Waste Management Refunding Revenue, 5.00%, 2012 3,375 3,026
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Revenue, 5.20% to 8.00%, 2013 through 2023 4,775 4,604
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Suffolk County, General Obligation, Refunding Revenue, 5.40%, 2013 1,000 952
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Suffolk County Water Authority, Water System Revenue, 5.00% to 7.375%, 2009 through 2015 5,245 4,876
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Sullivan County, Public Improvement Refunding Revenue, 4.75%, 2009 and 2010 1,770 1,583
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 16
(Dollars in thousands)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Syracuse, New York, Onondaga County Airport Improvement, General Obligation, 6.00% and 6.125%,
2014 $ 2,135 $ 2,148
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Syracuse, Public Improvement, Refunding Revenue, 4.75%, 2014 2,230 1,863
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Triborough Bridge and Tunnel Authority, General Purpose,
Refunding Revenue, 5.00% to 8.125%, 2012 through 2017 9,535 8,740
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Triborough Bridge and Tunnel Authority, Revenue, Special Obligation, 6.875% and 7.10%, 2015
through 2010 6,000 6,441
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Ulster County, Resource Recovery Agency, Solid Waste System Revenue, 5.90% and 6.00%, 2007 and
2014 4,100 3,797
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Virgin Islands Housing Finance Authority, GNMA Collateralized Home Mortgage, Revenue, 8.10%,
2018 75 79
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority, Matching Fund Loan, Revenue, 7.25%, 2018 5,100 5,277
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER OBLIGATIONS-92.7% 295,842
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
TOTAL OBLIGATIONS-98.5%
(Cost: $302,297) 314,472
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET INSTRUMENTS-1.1%
Yield--3.55% to 4.05%
Due--March 1995
(Cost: $3,515) 3,515 3,515
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-99.6%
(Cost: $305,812) 317,987
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES-.4% 1,332
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS-100% $ 319,319
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
15
<PAGE> 17
KEMPER OHIO TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS February 28, 1995
(Dollars in thousands)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Batavia Local School District, School Improvement, General Obligation, 7.00%, 2014 $ 500 $ 551
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Berea City School District, School Improvement, General Obligation, 5.60% to 5.625%, 2008 through
2012 115 114
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Berea Library Improvement, General Obligation, 6.125%, 2012 5 5
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Celina, Wastewater System Mortgage, Revenue, 5.60%, 2011 600 597
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Clermont County, Mercy Hospital, Revenue, 5.875%, 2015 225 223
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Cleveland, Airport System Improvement, Revenue, 5.75%, 2015 750 728
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Cleveland City School District Library Improvement, General Obligation, 5.875%, 2011 60 61
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Cleveland, Cleveland Public Power, First Mortgage, Revenue, 7.00%, 2017 750 810
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Cleveland, Waterworks Improvement, First Mortgage Refunding Revenue, 6.25% and 6.50%, 2015 and 2011 665 681
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Columbus Municipal Airport Authority, Revenue Bonds, 6.00%, 2014 750 749
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Crawford County, General Obligation, 6.75%, 2019 700 751
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Cuyahoga County, Fairview General Hospital, Revenue, 5.50%, 2014 500 445
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Cuyahoga County, Meridia Health System, Revenue, 6.25%, 2014 950 948
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Dayton, James M. Cox International Airport, Revenue, 5.80%, 2011 350 351
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Delaware County School District, General Obligation, 5.20%, 2016 1,000 903
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Dover, Waterworks System Revenue, 6.00%, 2013 500 508
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Fayette County, Rattlesnake Improvement Area, General Obligation, 5.90%, 2013 200 191
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Franklin County, Convention Facilities Authority, Tax and Lease Revenue, 5.80%, 2013 390 390
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Franklin County, General Obligation, 5.50%, 2011 700 675
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Franklin County, Riverside United Methodist Hospital Project,
Hospital Facilities Refunding Revenue, 5.75%, 2012 695 661
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Green Springs, Health Care Facility, St, Francis Healthcare, Revenue , 7.00%, 2014 400 395
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Highland Heights, General Obligation, 6.15%, 2012 145 147
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lake County, Hospital Facility, Revenue, 5.375%, 2010 600 575
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lakeview Local School District, General Obligation, 6.90%, 2014 700 766
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lucas County, St. Vincent Medical Center, Revenue, 5.375% and 5.45%, 2017 and 2014 800 751
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lucas County, Public Improvement Water Utility, Revenue, 6.05%, 2013 130 133
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Marion County Health Care Facilities Refunding and Improvement, United Church Homes Project,
Revenue, 6.30% and 6.375%, 2015 and 2010 700 632
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Mason, Sewer System, Revenue, 6.00%, 2014 650 659
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Maumee, Hospital Facilities, Refunding Revenue, 5.80%, 2014 850 844
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Montgomery County, Sisters of Charity Health Care Systems, Revenue, 5.25%, 2011 300 283
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Muskingum County, Franciscan Health Advisory Services, Inc., Revenue, 7.50%, 2012 30 31
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Napoleon, Health Care Facility, Lutheran Orphans' and Old Folks' Home Society,
Refunding Revenue, 6.875%, 2023 500 517
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Northeast Ohio Regional Sewer District, Wastewater Improvement, Revenue, 6.50%, 2016 800 832
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio Building Authority, Administrative Building Funds Project, Revenue, 5.50% and 6.30%, 2012 and
2011 265 265
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio Building Authority, Adult Correctional Building Fund Projects, Revenue, 6.125%, 2012 310 314
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio Building Authority, James A. Rhodes State Office Tower, Revenue, 6.25% 2011 215 219
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio Building Authority, Juvenile Correctional Building Project, Revenue, 6.60%, 2014 200 212
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio Higher Educational Facility Commission, Oberlin College Project, Revenue, 5.375%, 2015 500 459
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio Higher Educational Facility, Dayton University, Revenue, 5.80% and 6.60%, 2019 and 2017 930 947
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio Higher Educational Facility, Dominican College, Revenue, 6.625%, 2014 600 606
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio Housing Finance Agency, Single Family Mortgage, Revenue, 7.85%, 2021 380 405
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Electric Generation Agency Joint Venture 5, Belleville Hydroelectric Project,
Revenue, 5.625%, 2016 500 481
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio State Public Facility, Park and Recreation Commission Facilities, Revenue, 5.25%, 2009 750 727
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio State Turnpike, Revenue, 5.45%, 2011 750 721
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio State Water Development Authority, Pure Water Refining and Improvement, Revenue, 5.50%, 2011 270 263
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ohio Water Development Authority, Water Development Refunding, Revenue, 5.00%, 2012 30 27
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Olentangy Local School District, General Obligation, 5.85% and 6.35%, 2007 and 2017 550 562
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Olmstead Falls School District, General Obligation, 6.85%, 2011 250 271
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Orrville, Water System Improvement, Revenue, 6.00%, 2011 500 511
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE> 18
(Dollars in thousands)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Pickerington Local School District, General Obligation, 5.55%, 2007 $ 35 $ 36
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Puerto Rico, Finance Agency, Revenue, 6.00%, 2014 750 762
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Sandusky County, General Obligation, 6.20%, 2013 500 517
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Shawnee State University, General Receipts, Revenue, 6.00%, 2014 200 202
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
City of Springdale, Hospital Facilities First Mortgage, Southwestern Ohio Seniors Services,
Revenue. 6.00%, 2018 750 650
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Toledo, Sewer District, General Obligation, 6.10%, 2014 500 510
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Trumbull County Sewer Improvement, General Obligation, 6.20%, 2014 500 514
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority, Revenue, 7.25%, 2018 225 233
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
West Geauga, School Improvement, General Obligation, 5.95%, 2012 500 508
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Worthington City School District, General Obligation, 6.375%, 2012 40 42
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Youngstown, Various Purpose, General Obligation, 6.125%, 2014 110 113
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL OBLIGATIONS-96.1%
(Cost: $27,188) 27,984
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET INSTRUMENTS-3.1%
Yield--3.75% to 3.90%
Due--March 1995
(Cost: $900) 900 900
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-99.2%
(Cost: $28,088) 28,884
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES-.8% 227
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS-100% $ 29,111
=================================================================================================================================
</TABLE>
See accompanying Notes to Portfolios of Investments
17
<PAGE> 19
KEMPER TEXAS TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS February 28, 1995
(Dollars in thousands)
<TABLE>
<CAPTION>
ADVANCE REFUNDED OBLIGATIONS SECURED AS TO PRINCIPAL Principal
AND INTEREST BY OBLIGATIONS OF THE UNITED STATES GOVERNMENT Amount Value
<S> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Arlington, Permanent Improvement, Revenue, 6.70%, to be called 8-15-02 @ 100 $ 100 $ 109
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Bexar County, Combination Tax and Revenue, Certificates of Obligation, 6.65%, to be called 6-15-02 @
100 125 136
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Colorado River Municipal Water District, Water System Revenue, 6.625%, to be called 1-01-01 @ 100 220 235
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Harris County, Toll Road, Senior Lien, Revenue, 6.50%, to be called 8-15-02 @ 102 250 273
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Tarrant County Water Control and Improvement District Number One,
Revenue, 6.00%, to be called 3-01-01 @ 100 425 444
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Travis County, General Obligation, 6.75%, to be called 9-01-01 @ 100 75 82
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ADVANCE REFUNDED OBLIGATIONS-8.3% 1,279
OTHER OBLIGATIONS
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Arlington, Permanent Improvement, Revenue, 5.75%, 2013 350 341
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Austin, Utility System, Refunding Revenue, 6.25%, 2016 500 510
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Bexar County Housing Finance Development Corporation, Multi-Family Housing, Revenue, 6.875%, 2012 250 259
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Brazos River Authority, Texas Utilities Electric Company Project, Revenue, 8.125%, 2020 350 377
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Cameron County Housing Finance Corporation, Single Family Mortgage, Revenue, 6.75%, 2025 500 513
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Circle C, Utility System, District Number Three, Revenue, 6.50%, 2009 250 261
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
College Station, Public Improvement, General Obligation, 5.50%, 2013 240 231
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Collin County, Jail Facility Financial Corporation, Revenue, 5.00%, 2013 400 363
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Corpus Christi, Utility System Revenue, 5.25%, 2013 300 281
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Dallas-Fort Worth International Airport, Joint Refunding Revenue, 6.00%, 2012 350 353
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Dallas, Waterworks and Sewer System, Revenue, 5.25%, 2013 and 2014 610 557
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Denison, Waterworks and Sewer System, Revenue, 6.40%, 2009 150 155
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Denton County, Improvement and Refunding, General Obligation, 5.00%, 2012 405 366
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Denton, Utility System, Revenue, 6.50%, 2009 150 157
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
East Texas Criminal Justice Facilities Financing Corporation, City of Henderson Project,
Mortgage Revenue, 6.125%, 2014 100 102
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Ector County Hospital District, Hospital Revenue, 7.30%, 2012 450 471
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Farmers Branch, General Obligation, 6.00%, 2009 200 202
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Fort Bend County Levee Improvement District Number 2, Unlimited Tax Levee Improvement,
General Obligation, 6.625%, 2008 200 209
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Fort Worth, General Obligation, 5.75%, 2007 300 304
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Georgetown Higher Education Finance Corporation, Southwestern University Project,
Revenue, 6.30%, 2014 500 506
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Harris County, Health Facilities Development Corporation, Hermann Hospital,
Revenue, 6.375%, 2024 200 203
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Harris County, Health Facilities Development Corporation, St. Luke's Episcopal Hospital Project,
Revenue, 6.75%, 2021 120 122
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Harris County, Hospital District Mortgage, Revenue, 7.40%, 2010 60 69
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Harris County, Mental Health and Mental Retardation Authority,
Revenue, 6.125%, 2006 200 207
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Harris County, Permanent Improvement, General Obligation, 5.125%, 2011 350 322
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Houston, Higher Education Finance Corporation, University of St. Thomas Project.
Revenue, 7.25%, 2007 300 313
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Laredo, General Obligation, 5.625%, 2013 500 487
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lockhart Correctional Facilities Financing Corporation, Revenue, 6.625%, 2012 200 208
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lower Colorado River Authority, Junior Lien, Revenue, 5.25%, 2015 150 135
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lower Colorado River Authority, 6.00%, 2017 400 401
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lubbock, General Obligation, 4.00%, 2011 300 239
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Lubbock, Waterworks System, Subordinate Lien, Certificates of Participation, Revenue, 5.75%, 2010 150 150
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Matagorda County, Navigation District Number 1, Central Power and Light Company,
Pollution Control Revenue, 7.875%, 2016 110 115
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Matagorda County, Navigation District Number 1, Houston Power and Light Company,
Pollution Control Revenue, 7.875%, 2016 100 103
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
North Central Texas Health Facilities Development Corporation, Children's Medical Center of Dallas,
Refunding Revenue, 6.00%, 2016 200 196
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE> 20
(Dollars in thousands)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
North Central Texas Health Facilities Development Corporation, Presbyterian Healthcare System,
Revenue, 6.625%, 2011 $ 100 $ 103
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Paris, Waterworks and Sewer System, Revenue, 6.25%, 2010 200 205
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Socorro Independent School District, General Obligation, 6.625%, 2013 90 94
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Spring Independent School District, General Obligation, 6.375%, 2016 400 410
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Tarrant County, Texas Health Facilities Development Corporation, Harris Methodist,
Health System Revenue, 6.00%, 2014 100 100
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Texas Housing Agency, Single Family Mortgage, Revenue, 7.15%, 2012 85 89
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Texas Municipal Power Agency, Refunding Revenue, 5.25%, 2012 200 188
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Texas Public Finance Authority, General Obligation, 7.00%, 2012 243 249
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Texas Southern University, Board of Regents, Consolidated Revenue, 5.00%, 2013 200 179
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Texas Veterans' Housing Assistance, General Obligation, 5.70%, 2014 240 217
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Titus County Hospital District, Refunding and Improvement, Revenue, 6.125%, 2013 500 461
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Travis County Housing Finance Corporation, Residential Mortgage, Senior Revenue, 7.00%, 2011 290 305
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Travis County Housing Finance Corporation, Single Family Mortgage,
Refunding Revenue, 6.75%, 2014 130 135
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Trinity River Authority, Denton Creek Wastewater System, Revenue, 6.45%, 2015 390 404
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Trinity River Authority, Regional Wastewater System Improvement, Revenue, 6.30%, 2009 150 155
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Tyler Junior College District, Combined Fee Improvement, Refunding Revenue, 5.90%, 2013 500 499
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Waco Health Facilities Development Corporation, Hillcrest Baptist Medical Center Project,
Revenue, 7.125%, 2014 90 96
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER OBLIGATIONS-88.6% 13,677
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-96.9%
(Cost: $14,442) 14,956
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES, LESS CASH AND OTHER ASSETS-3.1% 477
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS-100% $15,433
=================================================================================================================================
</TABLE>
NOTES TO PORTFOLIOS OF INVESTMENTS
At February 28, 1995, the Florida Fund had $29,713,000 (24.5% of net assets)
invested in Water and Waste Utility Bonds, and the Ohio Fund had $6,948,000
(23.8% of net assets) invested in Health Care Bonds.
<TABLE>
<CAPTION>
CALIFORNIA FLORIDA NEW YORK OHIO TEXAS
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Cost of investments for federal income tax purposes $1,062,394 114,441 305,812 28,088 14,442
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation 53,457 5,877 15,632 1,019 597
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Gross unrealized depreciation 15,299 1,844 3,457 223 83
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation 38,158 4,033 12,175 796 514
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements
19
<PAGE> 21
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1995
(in thousands)
<TABLE>
<CAPTION>
CALIFORNIA FLORIDA NEW YORK OHIO TEXAS
FUND FUND FUND FUND FUND
-------------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Investments, at value (Cost: $1,063,285, $114,441,
$305,812, $28,088 and $14,442, respectively) $ 1,100,552 118,474 317,987 28,884 14,956
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Cash 2,960 751 69 60 212
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Receivable for:
Fund shares sold 815 240 262 193 61
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Investments sold 9,485 6,827 9,677 1,197 --
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Interest 19,530 2,422 4,581 415 240
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Total assets 1,133,342 128,714 332,576 30,749 15,469
=================================================================================================================================
LIABILITIES AND NET ASSETS
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Payable for:
Dividends 1,526 157 430 37 21
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Fund shares redeemed 872 75 766 110 --
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Investments purchased 15,347 6,896 11,751 1,459 --
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Management fee 482 56 143 7 4
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Other 388 46 167 25 11
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Total liabilities 18,615 7,230 13,257 1,638 36
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net assets $ 1,114,727 121,484 319,319 29,111 15,433
=================================================================================================================================
ANALYSIS OF NET ASSETS
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Excess of amounts received from issuance of shares over
amounts paid on redemptions of shares on account of
capital $ 1,100,304 118,456 312,790 29,012 15,039
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on sales of investments (22,844) (1,005) (5,646) (697) (120)
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation of investments 37,267 4,033 12,175 796 514
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 1,114,727 121,484 319,319 29,111 15,433
=================================================================================================================================
THE PRICING OF SHARES
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
Net assets applicable to shares outstanding $1,106,547.460 119,463.646 316,553.043 25,434.734 14,567.707
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, no par value 153,307.818 11,799.263 29,898.657 2,631.442 1,423.314
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net asset value and redemption price per share
(Net assets / shares outstanding) $7.22 10.12 10.59 9.67 10.24
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share (net asset value,
plus 4.71% of net asset value or 4.50% of offering
price) $7.56 10.60 11.09 10.13 10.72
=================================================================================================================================
CLASS B SHARES
Net assets applicable to shares outstanding $ 8,030.424 1,983.719 2,692.547 3,473.252 348.792
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, no par value 1,112.581 196.214 254.190 359.371 34.086
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption price
(subject to contingent deferred sales charge) per
share (Net assets / shares outstanding) $7.22 10.11 10.59 9.66 10.23
=================================================================================================================================
CLASS C SHARES
Net assets applicable to shares outstanding $ 148.738 36.834 73.368 203.255 516.109
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, no par value 20.605 3.643 6.932 21.026 50.412
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption price
per share (Net assets / shares outstanding) $7.22 10.11 10.58 9.67 10.24
=================================================================================================================================
</TABLE>
See accompanying Notes to Financial Statements.
20
<PAGE> 22
STATEMENT OF OPERATIONS
Six months ended February 28, 1995
(in thousands)
<TABLE>
<CAPTION>
CALIFORNIA FLORIDA NEW YORK OHIO TEXAS
FUND FUND FUND FUND FUND
---------- ------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
INTEREST INCOME $ 35,304 3,743 10,291 783 469
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Management fee 2,876 330 866 72 42
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Administrative service fee 721 83 229 22 12
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 296 24 128 10 2
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Distribution services fee 22 4 8 10 3
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Professional fees 90 8 21 1 1
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Reports to shareholders 105 9 41 5 3
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 81 15 33 10 6
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Total expenses before expense waiver 4,191 473 1,326 130 69
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Less expenses waived and absorbed by investment manager -- -- -- 69 25
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Total expenses absorbed by Fund 4,191 473 1,326 61 44
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net investment income 31,113 3,270 8,965 722 425
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net realized loss on sales of investments (10,269) (569) (1,991) (330) (89)
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain from futures transactions 515 122 84 25 7
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net realized loss (9,754) (447) (1,907) (305) (82)
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Change in balance of unrealized appreciation of investments 11,868 2,293 481 761 312
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 2,114 1,846 (1,426) 456 230
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 33,227 5,116 7,539 1,178 655
=================================================================================================================================
</TABLE>
See accompanying Notes to Financial Statements.
21
<PAGE> 23
STATEMENT OF CHANGES IN NET ASSETS
Six months ended February 28, 1995 and year ended August 31, 1994
(in thousands)
<TABLE>
<CAPTION>
CALIFORNIA FUND FLORIDA FUND NEW YORK FUND OHIO FUND TEXAS FUND
---------------------- ------------------ ------------------ ----------------- -----------------
OPERATIONS 1995 1994 1995 1994 1995 1994 1995 1994 1995 1994
---------- --------- -------- ------- -------- ------- -------- ------ -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 31,113 66,641 3,270 6,524 8,965 18,901 722 1,051 425 761
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Net realized gain
(loss) on investments (9,754) 14,661 (447) 2,618 (1,907) 2,494 (305) (392) (82) 147
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Net change in
unrealized
appreciation 11,868 (90,085) 2,293 (9,543) 481 (22,614) 761 (443) 312 (725)
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from
operations 33,227 (8,783) 5,116 (401) 7,539 (1,219) 1,178 216 655 183
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Distribution from net
investment income (31,113) (66,641) (3,270) (6,524) (8,965) (18,901) (722) (1,051) (425) (761)
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Distribution from net
realized gain on
investment
transactions (5,442) (49,354) (1,659) (4,031) (3,770) (8,195) -- -- (114) (161)
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Distribution in excess
of net realized gain
on investment
transactions -- (7,648) -- -- -- -- -- (14) -- --
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Total dividends to
shareholders (36,555) (123,643) (4,929) (10,555) (12,735) (27,096) (722) (1,065) (539) (922)
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
from capital share
transactions (50,394) (30,502) (3,424) 5,975 (18,324) 16,693 4,886 9,088 (92) 3,807
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets (53,722) (162,928) (3,237) (4,981) (23,520) (11,622) 5,342 8,239 24 3,068
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Beginning of period 1,168,449 1,331,377 124,721 129,702 342,839 354,461 23,769 15,530 15,409 12,341
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
End of period $1,114,727 1,168,449 121,484 124,721 319,319 342,839 29,111 23,769 15,433 15,409
================================================================================================================================
</TABLE>
22
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF THE TRUST
Kemper State Tax-Free Income Series (the Trust), is an open-end, management
investment company comprised of the following State series: Kemper California
Tax-Free Income Fund (the California Fund), Kemper Florida Tax-Free Income Fund
(the Florida Fund), Kemper New York Tax-Free Income Fund (the New York Fund),
Kemper Ohio Tax-Free Income Fund (the Ohio Fund) and Kemper Texas Tax-Free
Income Fund (the Texas Fund). Kemper Michigan, Kemper New Jersey, and Kemper
Pennsylvania Tax-Free Income Funds commenced offering shares on March 15, 1995.
The Funds currently offer three classes of shares. Class A shares are sold to
investors subject to an initial sales charge. Class B shares are sold without an
initial sales charge but are subject to higher ongoing expenses than Class A
shares and a contingent deferred sales charge payable upon certain redemptions.
Class B shares automatically convert to Class A shares six years after issuance.
Class C shares are sold without an initial or a contingent deferred sales charge
but are subject to higher ongoing expenses than Class A shares and do not
convert into another class. Each share of a Fund represents an identical
interest in the investments of the Fund and has the same rights.
2. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION
Investments are stated at value. Fixed income securities are valued by using
market quotations, or independent pricing services that use prices provided by
market makers or estimates of market values obtained from yield data relating to
instruments or securities with similar characteristics. Exchange traded fixed
income options are valued at the last sale price unless there is no sale price,
in which event prices provided by market makers are used. Over-the-counter
traded fixed income options are valued based upon prices provided by market
makers. Financial futures and options thereon are valued at the settlement price
established each day by the board of trade or exchange on which they are traded.
Other securities and assets are valued at fair value as determined in good faith
by the Board of Trustees.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the trade date (date the order to
buy or sell is executed). Interest income is recorded on the accrual basis and
premiums and original issue discounts on securities are amortized. Realized
gains and losses from investment transactions are reported on an identified cost
basis. Realized and unrealized gains and losses on financial futures and options
are included in net realized and unrealized gain (loss) on investments, as
appropriate.
EXPENSES
Expenses arising in connection with a specific Fund are allocated to that Fund.
Other Trust expenses are allocated among the Funds in proportion to their
relative net assets.
FUND SHARE VALUATION
Fund shares are sold and redeemed on a continuous basis at net asset value (plus
an initial sales charge on most sales of Class A shares). Proceeds payable on
redemption of Class B shares will be reduced by the amount of any applicable
contingent deferred sales charge. On each day the New York Stock Exchange is
open for trading, the net asset value per share is determined as of the earlier
of 3:00 p.m. Chicago time or the close of the Exchange. The net asset value per
share is determined separately for each class by dividing the Fund's net assets
attributable to that class by the number of shares of the class outstanding.
FEDERAL INCOME TAXES AND DIVIDENDS TO SHAREHOLDERS
Each Fund has complied with the special provisions
of the Internal Revenue Code available to investment companies during the six
months ended February 28, 1995. The accumulated net realized loss on sales of
investments for federal income tax purposes at February 28, 1995, is $9,754,000
in the Kemper California Tax-Free Income Fund, $447,000 in the Kemper Florida
Tax-Free Income Fund, $1,907,000 in the Kemper New York Tax-Free Income Fund,
$393,000 in the Kemper Ohio Tax-Free Income Fund, and $82,000 in the Texas
Tax-Free Income Fund. These loss carryovers are available to offset future
taxable gains in the respective Funds, and, if not used, expire during the
period 2001 through 2003.
Each Fund declares and records a daily dividend equal to its net investment
income for that day, to holders of shares for which payment has been received.
Income dividends are distributed monthly. Net realized capital gains, if any,
will be distributed at least annually.
Differences in dividends per share for a Fund are due to different class
expenses. Dividends payable to its shareholders are recorded by each Fund on the
ex-dividend date.
Distributions are determined in accordance with income tax principles which may
treat certain transactions differently than generally accepted accounting
principles.
3. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT
The Trust has a management agreement with Kemper Financial Services, Inc. (KFS)
and each Fund pays a management fee at an annual rate of .55% of the first $250
million of average daily net assets declining gradually to .40% of average daily
net assets in excess of $12.5 billion. The California, Florida and New York
Funds incurred a management fee of $2,876,000,
23
<PAGE> 25
$330,000 and $866,000, respectively, for the six months ended February 28, 1995.
KFS waived the Texas Fund's management fee and absorbed all other operating
expenses until December 31, 1992. Thereafter, the management fee and operating
expenses are being reinstated gradually. For the six months ended February 28,
1995, the Texas Fund paid a management fee of $17,000 after the waiver.
KFS waived the Ohio Fund's management fee and absorbed all other operating
expenses until June 30, 1994. Thereafter, the management fee and operating
expenses are being reinstated gradually. For the six months ended February 28,
1995, the Ohio Fund paid a management fee of $24,000 after the waiver.
UNDERWRITING AND DISTRIBUTION SERVICES AGREEMENT
The Trust has an underwriting and distribution services agreement with Kemper
Distributors, Inc. (KDI). Before February 1, 1995, KFS was the Trust's principal
underwriter and distributor. As principal underwriter for the Trust, KDI (as
successor to KFS) retained commissions of $110,000 for the six months ended
February 28, 1995 for the sale of Class A shares, after allowing $733,000 as
commissions to retail firms, of which $146,000 was paid to firms affiliated with
KDI. For services under the distribution services agreement, the Trust pays KDI
a fee of .75% of average daily net assets of the Class B and Class C shares.
Pursuant to the agreement, KDI enters into related selling group agreements with
various firms that provide distribution services to investors. KDI compensates
these firms at various rates for sales of Class B and Class C shares. During the
six months ended February 28, 1995, the Funds incurred a distribution services
fee for Class B and Class C shares of $40,000, and KDI paid $365,000 for
commissions and distribution fees to firms, including $142,000 to firms
affiliated with KDI. In addition, KDI received $11,000 of contingent deferred
sales charges.
ADMINISTRATIVE SERVICES AGREEMENT
The Trust has an administrative services agreement with KDI. Before February 1,
1995, KFS was the Trust's administrator. For providing information and
administrative services to shareholders, the Trust pays KDI a fee at an annual
rate of up to .25% of average daily net assets. KDI in turn has various
arrangements with financial services firms that provide these services and pays
these firms based on assets of Trust accounts the firms service. For the six
months ended February 28, 1995, the Trust incurred an administrative services
fee of $1,053,000 and KDI (as successor to KFS) paid $1,077,000 to firms,
including $158,000 that was paid to firms affiliated with KDI.
CUSTODIAN AND TRANSFER AGENT AGREEMENTS
The Trust has a custodian agreement and a transfer agent agreement with
Investors Fiduciary Trust Company (IFTC), which was 50% owned by KFS until
January 31, 1995, when KFS sold IFTC to a third party. For the six months ended
February 28, 1995, the Trust incurred custodian and transfer agent fees of
$230,000 (excluding related expenses). Pursuant to a services agreement with
IFTC, Kemper Service Company (KSvC), an affiliate of KFS, is the shareholder
service agent of the Trust. For the six months ended February 28, 1995, IFTC
remitted shareholder service fees of $357,000 to KSvC.
OFFICERS AND TRUSTEES
Certain officers or trustees of the Trust are also officers or directors of KFS.
For the six months ended February 28, 1995, the Trust made no payments to its
officers and incurred trustees' fees of $29,000 to independent trustees.
4. INVESTMENT TRANSACTIONS
For the six months ended February 28, 1995, investment transactions (excluding
short term instruments) are as follows (in thousands):
<TABLE>
<CAPTION>
CALIFORNIA FLORIDA NEW YORK OHIO TEXAS
FUND FUND FUND FUND FUND
---------- ------- -------- ------ -----
<S> <C> <C> <C> <C> <C>
Purchases $304,462 42,237 91,796 17,499 3,251
- - - - - - ----------------------------------------------------------------------------
Proceeds from sales 338,827 45,979 110,799 12,090 3,423
- - - - - - ----------------------------------------------------------------------------
</TABLE>
5. CAPITAL SHARE TRANSACTIONS
The following tables summarize the activity in capital shares of the Funds (in
thousands):
<TABLE>
<CAPTION>
Six months
ended Year ended
February 28, August 31,
1995 1994
------------------- -------------------
CALIFORNIA FUND Shares Amount Shares Amount
------- --------- ------- ---------
<S> <C> <C> <C> <C>
Shares sold:
Class A 5,989 $ 41,360 19,801 $ 161,763
- - - - - - ------------------------------------------------------------------
Class B 937 6,513 416 3,012
- - - - - - ------------------------------------------------------------------
Class C 10 65 11 82
- - - - - - ------------------------------------------------------------------
Shares issued in
reinvestment of
dividends:
Class A 3,104 21,431 10,566 68,651
- - - - - - ------------------------------------------------------------------
Class B 14 94 2 11
- - - - - - ------------------------------------------------------------------
Shares redeemed:
Class A (17,132) (118,436) (35,357) (264,021)
- - - - - - ------------------------------------------------------------------
Class B (205) (1,421) -- --
- - - - - - ------------------------------------------------------------------
Conversion of shares:
Class A 52 353 -- --
- - - - - - ------------------------------------------------------------------
Class B (52) (353) -- --
- - - - - - ------------------------------------------------------------------
Net decrease from
capital share
transactions $ (50,394) $ (30,502)
- - - - - - ------------------------------------------------------------------
</TABLE>
24
<PAGE> 26
<TABLE>
<CAPTION>
Six months
ended Year ended
February 28, August 31,
1995 1994
----------------- -----------------
FLORIDA FUND Shares Amount Shares Amount
------ -------- ------ --------
<S> <C> <C> <C> <C>
Shares sold:
Class A 1,575 $ 15,264 2,658 $ 28,070
- - - - - - -------------------------------------------------------------------
Class B 145 1,412 87 880
- - - - - - -------------------------------------------------------------------
Class C 2 21 1 15
- - - - - - -------------------------------------------------------------------
Shares issued in reinvestment
of dividends:
Class A 288 2,784 565 5,970
- - - - - - -------------------------------------------------------------------
Class B 2 25 -- --
- - - - - - -------------------------------------------------------------------
Shares redeemed:
Class A (2,317) (22,603) (2,786) (28,960)
- - - - - - -------------------------------------------------------------------
Class B (33) (327) -- --
- - - - - - -------------------------------------------------------------------
Conversion of shares:
Class A 5 52 -- --
- - - - - - -------------------------------------------------------------------
Class B (5) (52) -- --
- - - - - - -------------------------------------------------------------------
Net (decrease) increase from
capital share transactions $ (3,424) $ 5,975
===================================================================
</TABLE>
<TABLE>
<CAPTION>
Year ended
Six months ended August 31,
February 28, 1995 1994
----------------- ----------------
NEW YORK FUND Shares Amount Shares Amount
------ -------- ------ -------
<S> <C> <C> <C> <C>
Shares sold:
Class A 882 $ 9,173 5,052 $56,846
- - - - - - ------------------------------------------------------------------
Class B 135 1,437 149 1,618
- - - - - - ------------------------------------------------------------------
Class C 3 38 7 73
- - - - - - ------------------------------------------------------------------
Shares issued in reinvestment
of dividends:
Class A 829 8,455 1,688 18,895
- - - - - - ------------------------------------------------------------------
Class B 4 45 1 7
- - - - - - ------------------------------------------------------------------
Shares redeemed:
Class A (3,612) (37,119) (5,511) (60,693)
- - - - - - ------------------------------------------------------------------
Class B (30) (319) (5) (53)
- - - - - - ------------------------------------------------------------------
Class C (3) (34) -- --
- - - - - - ------------------------------------------------------------------
Net (decrease) increase from
capital share transactions $(18,324) $16,693
==================================================================
</TABLE>
<TABLE>
<CAPTION>
Six months ended Year ended
February 28, 1995 August 31, 1994
----------------- ---------------
OHIO FUND Shares Amount Shares Amount
------ -------- ------ ------
<S> <C> <C> <C> <C>
Shares sold:
Class A 423 $ 4,010 875 $8,852
- - - - - - -------------------------------------------------------------------
Class B 243 2,262 121 1,159
- - - - - - ------------------------------------------------------------------
Class C 11 103 10 94
- - - - - - ------------------------------------------------------------------
Shares issued in reinvestment
of dividends:
Class A 56 409 96 643
- - - - - - ------------------------------------------------------------------
Class B 4 32 -- --
- - - - - - ------------------------------------------------------------------
Shares redeemed:
Class A (207) (1,900) (168) (1,611)
- - - - - - ------------------------------------------------------------------
Class B (3) (30) (5) (49)
- - - - - - ------------------------------------------------------------------
Net increase from capital
share transactions $ 4,886 $9,088
==================================================================
</TABLE>
<TABLE>
<CAPTION>
Six months ended
February 28, Year ended
1995 August 31, 1994
---------------- ----------------
TEXAS FUND Shares Amount Shares Amount
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares sold:
Class A 145 $ 1,433 544 $ 5,678
- - - - - - -------------------------------------------------------------------
Class B 30 309 3 35
- - - - - - -------------------------------------------------------------------
Class C 4 42 45 461
- - - - - - -------------------------------------------------------------------
Shares issued in reinvestment
of dividends:
Class A 34 328 56 583
- - - - - - -------------------------------------------------------------------
Class C 2 8 -- --
- - - - - - -------------------------------------------------------------------
Shares redeemed:
Class A (225) (2,212) (285) (2,950)
- - - - - - -------------------------------------------------------------------
Net (decrease) increase from
capital share transactions $ (92) $ 3,807
===================================================================
</TABLE>
25
<PAGE> 27
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Class A
--------------------------------------------------------------
Six months
ended
February 28, Year ended August 31,
CALIFORNIA FUND 1995 1994 1993 1992 1991
------------ --------- --------- --------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $7.22 8.01 7.57 7.31 6.96
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .20 .39 .44 .46 .46
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments .04 (.44) .53 .29 .35
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .24 (.05) .97 .75 .81
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment income .20 .39 .44 .46 .46
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Distribution from net realized gain on investments .04 .30 .09 .03 --
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Distribution in excess of net realized gain on investments -- .05 -- -- --
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Total dividends .24 .74 .53 .49 .46
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.22 7.22 8.01 7.57 7.31
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 3.37 (.74) 13.21 10.47 12.00
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%):
Expenses .76 .74 .63 .64 .66
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net investment income 5.69 5.30 5.68 6.11 6.43
=================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Class C
---------------------------- ----------------------------
Six months May 31, Six months May 31,
ended 1994 to ended 1994 to
February 28, August 31, February 28, August 31,
1995 1994 1995 1994
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $7.22 7.23 $ 7.22 7.23
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .17 .08 .17 .08
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments .04 (.01) .04 (.01)
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .21 .07 .21 .07
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment income .17 .08 .17 .08
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Distribution from net realized gain on investments .04 -- .04 --
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Total dividends .21 .08 .21 .08
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.22 7.22 $ 7.22 7.22
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 2.91 1.05 2.94 .96
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%):
Expenses 1.63 1.60 1.58 1.56
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Net investment income 4.65 4.48 4.76 4.76
==============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Six months
ended
February 28, Year ended August 31,
1995 1994 1993 1992 1991
------------ --------- --------- --------- -------
<S> <C> <C> <C> <C> <C>
SUPPLEMENTAL DATA FOR ALL CLASSES:
Net assets at end of period (in thousands) $1,114,727 1,168,449 1,331,377 1,182,891 973,408
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 57 37 59 15 17
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
26
<PAGE> 28
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------------------
Six months April 25,
ended 1991 to
February 28, Year ended August 31, August 31,
FLORIDA FUND 1995 1994 1993 1992 1991
------------ ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $10.11 10.98 10.22 9.69 9.50
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .27 .52 .58 .64 .23
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments .15 (.52) .81 .53 .19
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .42 -- 1.39 1.17 .42
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment income .27 .52 .58 .64 .23
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Distribution from net realized gain on investments .14 .35 .05 -- --
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Total dividends .41 .87 .63 .64 .23
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.12 10.11 10.98 10.22 9.69
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 4.28 (.11) 13.96 12.51 4.27
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%)(A):
Expenses .78 .79 .63 .25 --
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Net investment income 5.46 5.04 5.48 6.25 6.52
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class B Class C
----------------------------- -----------------------------
Six months May 31, Six months May 31,
ended 1994 to ended 1994 to
February 28, August 31, February 28, August 31,
1995 1994 1995 1994
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $10.10 10.13 $10.10 10.13
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .22 .11 .23 .11
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments .15 (.03) .15 (.03)
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .37 .08 .38 .08
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment income .22 .11 .23 .11
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Distribution from net realized gain on investments .14 -- .14 --
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Total dividends .36 .11 .37 .11
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.11 10.10 $10.11 10.10
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 3.82 .74 3.90 .75
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%):
Expenses 1.67 1.70 1.54 1.54
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Net investment income 4.45 4.28 4.57 4.52
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six months April 25,
ended 1991 to
February 28, Year ended August 31, August 31,
1995 1994 1993 1992 1991
------------ ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
SUPPLEMENTAL DATA FOR ALL CLASSES:
Net assets at end of period (in thousands) $121,484 124,721 129,702 109,276 41,923
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 73 53 35 20 33
===============================================================================================================================
</TABLE>
27
<PAGE> 29
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------------------
Six months
ended
February 28, Year ended August 31,
NEW YORK FUND 1995 1994 1993 1992 1991
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $10.73 11.59 10.97 10.41 9.90
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .29 .58 .63 .65 .69
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments (.01) (.60) .72 .56 .51
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .28 (.02) 1.35 1.21 1.20
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment income .29 .58 .63 .65 .69
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Distribution from net realized gain on investments .13 .26 .10 -- --
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Total dividends .42 .84 .73 .65 .69
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.59 10.73 11.59 10.97 10.41
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 2.72 (.19) 12.82 12.07 12.54
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%)(B):
Expenses .83 .76 .67 .66 .40
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net investment income 5.63 5.29 5.69 6.12 6.77
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class B Class C
-------------------------- --------------------------
Six months May 31, Six months May 31,
ended 1994 to ended 1994 to
February 28, August 31, February 28, August 31,
1995 1994 1995 1994
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $10.73 10.77 $ 10.73 10.77
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .24 .12 .25 .12
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net loss on investments (.01) (.04) (.02) (.04)
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .23 .08 .23 .08
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment income .24 .12 .25 .12
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Distribution from net realized gain on investments .13 -- .13 --
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Total dividends .37 .12 .38 .12
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.59 10.73 $ 10.58 10.73
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 2.29 .75 2.24 .70
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%):
Expenses 1.69 1.68 1.59 1.63
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Net investment income 4.71 4.36 4.65 4.68
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six months
ended
February 28, Year ended August 31,
1995 1994 1993 1992 1991
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
SUPPLEMENTAL DATA FOR ALL CLASSES:
Net assets at end of period (in thousands) $319,319 342,839 354,461 290,464 229,350
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 59 43 36 16 26
- - - - - - ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
28
<PAGE> 30
<TABLE>
<CAPTION>
Class A
--------------------------------------------
Six months Year March 22,
ended ended 1993 to
February 28, August 31, August 31,
OHIO FUND 1995 1994 1993
------------ ---------- ----------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 9.56 9.98 9.50
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .26 .53 .24
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments .11 (.41) .48
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .37 .12 .72
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment income .26 .53 .24
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Distribution from net realized gain on investments -- .01 --
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Total dividends .26 .54 .24
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.67 9.56 9.98
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 3.97 1.23 7.54
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%)(C):
Expenses absorbed by the Fund .42 .02 --
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Net investment income 5.58 5.44 5.21
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (%)(C):
Operating expenses .90 .82 .86
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Net investment income 5.11 4.64 4.36
================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Class C
----------------------------- ---------------------------
Six months May 31, Six months May 31,
ended 1994 to ended 1994 to
February 28, August 31, February 28, August 31,
1995 1994 1995 1994
------------ ------------ ------------ ----------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $9.56 9.54 $ 9.56 9.54
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .24 .14 .24 .14
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Net gain on investments .10 .02 .11 .02
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .34 .16 .35 .16
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment income .24 .14 .24 .14
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Total dividends .24 .14 .24 .14
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.66 9.56 $ 9.67 9.56
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 3.67 1.55 3.77 1.55
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%)(C):
Expenses absorbed by the Fund .86 .22 .85 .21
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Net investment income 5.02 4.72 5.03 5.04
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (%)(C):
Operating expenses 1.87 1.72 1.85 1.67
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Net investment income 4.01 3.22 4.03 3.58
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six months Year March 22,
ended ended 1993 to
February 28, August 31, August 31,
1995 1994 1993
------------ ---------- ----------
<S> <C> <C> <C>
SUPPLEMENTAL DATA FOR ALL CLASSES:
Net assets at end of period (in thousands) $ 29,111 23,769 15,530
- - - - - - --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 99 103 17
================================================================================================================================
</TABLE>
29
<PAGE> 31
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------
Six months November 1,
ended 1991 to
February 28, Year ended August 31, August 31,
TEXAS FUND 1995 1994 1993 1992
------------ ------- ---------- -----------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $10.14 10.69 9.95 9.50
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .28 .56 .60 .50
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments .18 (.42) .74 .45
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .46 .14 1.34 .95
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment income .28 .56 .60 .50
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Distribution from net realized gain on investments .08 .13 -- --
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Total dividends .36 .69 .60 .50
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.24 10.14 10.69 9.95
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 4.64 1.28 13.89 10.15
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%)(D):
Expenses absorbed by the Fund .55 .36 .08 --
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Net investment income 5.66 5.38 5.79 5.98
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS(%)(D):
Operating expenses .87 .90 .79 .93
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Net investment income 5.34 4.82 5.08 5.05
==============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Class C
---------------------------- ----------------------------
Six months May 31, Six months May 31,
ended 1994 to ended 1994 to
February 28, August 31, February 28, August 31,
1995 1994 1995 1994
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $10.15 10.17 $ 10.15 10.17
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .23 .12 .24 .12
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments .16 (.02) .17 (.02)
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .39 .10 .41 .10
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Less dividends:
Distribution from net investment income .23 .12 .24 .12
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Distribution from net realized gain on investments .08 -- .08 --
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Total dividends .31 .12 .32 .12
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.23 10.15 $ 10.24 10.15
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 3.88 .92 4.10 .88
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%)(D):
Expenses absorbed by the Fund 1.45 1.24 1.42 1.23
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Net investment income 4.54 4.44 4.79 3.96
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS(%)(D):
Operating expenses 1.77 1.78 1.74 1.77
- - - - - - -------------------------------------------------------------------------------------------------------------------------------
Net investment income 4.22 3.90 4.47 3.42
===============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Six months November 1,
ended 1991 to
February 28, Year ended August 31, August 31,
1995 1994 1993 1992
------------ ------- ---------- -----------
<S> <C> <C> <C> <C>
SUPPLEMENTAL DATA FOR ALL CLASSES:
Net assets at end of period (in thousands) $ 15,433 15,409 12,341 7,810
- - - - - - ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 44 58 47 18
==============================================================================================================================
</TABLE>
30
<PAGE> 32
NOTES FOR ALL FUNDS:
(a) Certain expenses of the Florida Fund were waived or absorbed by KFS during
each of the three periods shown ending August 31, 1993. If no waiver was in
place during this time, the expense ratios would have increased .86%, .42%
and .01% of average net assets, respectively, with a corresponding decrease
in the net investment income ratios during these periods.
(b) Certain expenses of the New York Fund were waived or absorbed by KFS during
the period ended August 31, 1991. If no waiver was in place during this
time, the expense ratio would have increased .32% of average net assets with
a corresponding decrease in the net investment income ratio.
(c) Certain expenses of the Ohio Fund were waived or absorbed by KFS from March
22, 1993 through June 30, 1994. Thereafter, these expenses are being
gradually reinstated. "Other Ratios to Average Net Assets" are computed
without the undertaking to waive such expenses.
(d) Certain expenses of the Texas Fund were waived or absorbed by KFS from
November 1, 1991 through December 31, 1992. Thereafter, expenses (excluding
the management fee) were gradually reinstated through October 1, 1993 and
the management fee is being gradually reinstated through June, 1995. "Other
Ratios to Average Net Assets" are computed without the undertaking to waive
such expenses.
Ratios have been determined on an annualized basis. Total return is not
annualized and does not reflect the effect of sales charges.
31
<PAGE> 33
(KEMPER LOGO)
KEMPER FINANCIAL SERVICES, INC.
120 South LaSalle Street
Chicago, IL 60603
KEMPER STATE TAX-FREE INCOME SERIES
<TABLE>
<CAPTION>
<S> <C>
Trustees Officers
STEPHEN B. TIMBERS J. PATRICK BEIMFORD, JR.
President and Vice President
Trustee
CHRISTOPHER J. MIER
DAVID W. BELIN Vice President
Trustee
JOHN E. PETERS
LEWIS A. BURNHAM Vice President
Trustee
PHILIP J. COLLORA
DONALD L. DUNAWAY Vice President and
Trustee Secretary
ROBERT B. HOFFMAN CHARLES F. CUSTER
Trustee Vice President and
Assistant Secretary
DONALD R. JONES
Trustee JEROME L. DUFFY
Treasurer
DAVID B. MATHIS
Trustee ELIZABETH C. WERTH
Assistant Secretary
WILLIAM P. SOMMERS
Trustee
- - - - - - -----------------------------------------------------------
<S> <C>
Legal Counsel Custodian and Transfer Agent
VEDDER, PRICE, KAUFMAN INVESTORS FIDUCIARY
& KAMMHOLZ TRUST COMPANY
222 North LaSalle Street 127 West 10th Street
Chicago, IL 60601 Kansas City, MO 64105
Shareholder Service Agent
KEMPER SERVICE COMPANY
P.O. Box 419557
Kansas City, MO 64141
800-621-1048
</TABLE>
Investment Manager
KEMPER FINANCIAL SERVICES, INC.
Principal Underwriter
KEMPER DISTRIBUTORS, INC.
120 South LaSalle Street
Chicago, IL 60603
(LOGO)
Printed on Recycled Paper
This report is not to be distributed 237850
KSTIS-3 (4/95) unless preceded or accompanied by a Printed in the U.S.A.
Kemper Tax-Free Income Funds prospectus
