SELIGMAN FINANCIAL SERVICES, INC.
AN AFFILIATE OF
[LOGO]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 PARK AVENUE, NEW YORK, NY 10017
THIS REPORT IS INTENDED ONLY FOR THE INFORMATION OF SHAREHOLDERS OR THOSE WHO
HAVE RECEIVED THE OFFERING PROSPECTUS COVERING SHARES OF CAPITAL STOCK OF
SELIGMAN MUNICIPAL FUND SERIES, INC., WHICH CONTAINS INFORMATION ABOUT THE SALES
CHARGES, MANAGEMENT FEES, AND OTHER COSTS. PLEASE READ THE PROSPECTUS CAREFULLY
BEFORE INVESTING OR SENDING MONEY.
TEA2 9/96
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13TH ANNUAL REPORT
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SELIGMAN
MUNICIPAL
FUND
SERIES, INC.
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SEPTEMBER 30, 1996
[LOGO]
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PROVIDING INCOME
FREE FROM REGULAR INCOME TAX
SINCE 1983
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TO THE SHAREHOLDER
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We are pleased to update you on the National and 12 stat e-specific portfolios
of Seligman Municipal Fund Series, Inc. at their fiscal year-end, September 30,
1996.
After reducing interest rates twice in 1995, and again in January 1996, the
Federal Reserve Board left rates unchanged for the next eight months. The
economy's rate of growth, which slowed in the fourth quarter of 1995, bounced
back in the second quarter of 1996. It continued to grow at a healthy pace all
year with virtually no inflationary repercussions. Reports issued in September
supported this view, showing continued increases in production, new home sales,
wages, and spending.
With the lowest unemployment rate since June 1990, strong personal incomes,
interest rates far below their 1980s levels, and few signs of inflationary
pressure, consumer confidence as measured by The Conference Board rose 25% above
its January 1996 level.
In the municipal bond market, interest rates began to decline in the third
quarter of 1995 and continued to do so until February 1996. However, as the
economy picked up steam late in the first quarter of this year, and continued to
grow in the second quarter, municipal market sentiment turned from enthusiasm to
concern regarding inflation. For the last six months, every Fed meeting was
under intense scrutiny by market participants. The inability of municipal bond
investors to gauge the future direction of rates exaggerated their response to
each economic report, with municipal bond yields drifting up or down in response
to the latest data.
On September 24, the Fed decided to maintain the current fed funds rate.
Once the decision was announced, long-term municipal bond yields, as measured by
the Bond Buyer 20-Bond General Obligation Index, declined slightly and ended the
quarter at 5.76%. The unchanged monetary policy somewhat stabilized the
municipal bond market by the end of the Fund's fourth quarter.
Going forward, we foresee continued, albeit moderate, economic growth and a
benign level of inflation. This environment of modest growth, combined with
relatively stable interest rates, should be beneficial for financial markets in
the months ahead. As always, there could be short-term volatility, but we remain
confident in the long-term outlook.
As we near the end of the year, we encourage you to review your overall
investment portfolio. When doing so, you may wish to consult your financial
advisor to discuss financial issues such as tax planning, and to ensure that you
are following the best investment strategy to help you seek your financial
goals.
At the SPECIAL MEETING OF SHAREHOLDERS, held on September 30, 1996, a
proposal was passed permitting the Fund to invest any portion of its net assets
in securities subject to the federal alternative minimum tax. Consequently, your
Fund's name was changed to Seligman Municipal Fund Series, Inc., and the word
"Municipal" will replace the words "Tax-Exempt" in each Series within the Fund.
For specific results of the SPECIAL MEETING OF SHAREHOLDERS, please refer to
page 61.
A discussion with your Portfolio Manager about your Fund, along with
highlights of performance, long-term investment results, portfolio holdings, and
financial statements, follows this letter.
We thank you for your continued interest in Seligman Municipal Fund Series,
and look forward to serving your investment needs in the many years to come.
By order of the Board of Directors,
/s/ William C. Morris
- ---------------------
William C. Morris
Chairman
/s/ Brian T. Zino
-----------------
Brian T. Zino
President
October 30, 1996
1
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SELIGMAN MUNICIPAL FUND SERIES, INC.
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HIGHLIGHTS September 30, 1996
<TABLE>
<CAPTION>
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MASSA-
NATIONAL COLORADO GEORGIA LOUISIANA MARYLAND CHUSETTS
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NET ASSETS (in millions)
<S> <C> <C> <C> <C> <C> <C>
Class A $98.8 $52.3 $51.0 $57.3 $54.0 $109.9
Class D 4.8 0.3 2.3 0.4 2.0 1.4
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YIELD*
Class A 4.92% 4.39% 4.75% 4.63% 4.59% 4.83%
Class D 4.24 3.69 4.09 3.97 3.91 4.17
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DIVIDENDS**
Class A $0.399 $0.371 0.388 $0.422 $0.404 $0.411
Class D 0.328 0.305 0.317 0.347 0.331 0.339
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CAPITAL GAIN DISTRIBUTIONS** -- -- $0.054 $0.062 $0.034 $0.107
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NET ASSET VALUE PER SHARE
September 30, 1996
Class A $7.70 $7.27 $7.87 $ 8.16 $7.99 $7.85
Class D 7.70 7.27 7.88 8.16 7.99 7.84
September 30, 1995
Class A 7.58 7.30 7.81 8.14 7.96 7.91
Class D 7.57 7.29 7.82 8.14 7.97 7.90
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MAXIMUM OFFERING PRICE
PER SHARE
September 30, 1996
Class A $8.08 $7.63 $8.26 $8.57 $8.39 $8.24
Class D 7.70 7.27 7.88 8.16 7.99 7.84
September 30, 1995
Class A 7.96 7.66 8.20 8.55 8.36 8.30
Class D 7.57 7.29 7.82 8.14 7.97 7.90
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MOODY'S/S&P RATINGS+
Aaa/AAA 17% 48% 40% 85% 37% 49%
Aa/AA 54 36 32 7 38 19
A/A 23 11 22 6 23 24
Baa/BBB 4 4 6 2 2 8
Non-rated 2 1 -- -- -- --
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HOLDINGS BY MARKET SECTOR+
Revenue Bonds 86% 78% 67% 79% 65% 82%
General Obligation Bonds 14 22 33 21 35 18
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WEIGHTED AVERAGE MATURITY
(Years) 26.3 18.8 20.4 18.9 19.9 21.2
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</TABLE>
* Current yield representing the annualized yield for the 30-day period ended
September 30, 1996.
** Represents per share amount paid or declared with respect to Class A and
Class D shares during the year ended September 30, 1996.
+ Percentages based on current market values of long-term holdings.
2
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<TABLE>
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SOUTH
MICHIGAN MINNESOTA MISSOURI NEW YORK OHIO OREGON CAROLINA
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NET ASSETS (in millions)
<S> <C> <C> <C> <C> <C> <C> <C>
Class A $148.2 $126.2 $49.9 $82.7 $162.2 $57.3 $108.2
Class D 1.5 2.0 0.6 1.2 1.0 1.5 2.7
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YIELD*
Class A 4.77% 4.26% 4.35% 4.88% 4.65% 4.45% 4.60%
Class D 4.11 3.57 3.68 4.22 3.98 3.78 3.94
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DIVIDENDS**
Class A $0.448 $0.423 $0.387 $0.417 $0.432 $0.397 $0.414
Class D 0.371 0.353 0.318 0.345 0.361 0.328 0.341
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CAPITAL GAIN DISTRIBUTIONS** $0.143 $0.020 $0.073 -- $0.038 $0.008 $0.018
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NET ASSET VALUE PER SHARE
September 30, 1996
Class A $8.46 $7.68 $7.71 $7.98 $8.09 $7.65 $8.07
Class D 8.45 7.68 7.72 7.98 8.13 7.64 8.06
September 30, 1995
Class A 8.54 7.82 7.70 7.86 8.11 7.66 7.97
Class D 8.54 7.82 7.70 7.87 8.15 7.65 7.97
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MAXIMUM OFFERING PRICE
PER SHARE
September 30, 1996
Class A $8.88 $8.06 $8.09 $8.38 $8.49 $8.03 $8.47
Class D 8.45 7.68 7.72 7.98 8.13 7.64 8.06
September 30, 1995
Class A 8.97 8.21 8.08 8.25 8.51 8.04 8.37
Class D 8.54 7.82 7.70 7.87 8.15 7.65 7.97
- -------------------------------------------------------------------------------------------------------------- --------------------
MOODY'S/S&P RATINGS+
Aaa/AAA 51% 41% 41% 53% 70% 38% 66%
Aa/AA 20 35 41 11 15 24 12
A/A 25 20 18 22 10 25 21
Baa/BBB 4 -- -- 14 2 5 1
Non-rated 2 4 -- -- 3 8 --
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HOLDINGS BY MARKET SECTOR+
Revenue Bonds 82% 47% 82% 97% 74% 59% 87%
General Obligation Bonds 18 53 18 3 26 41 13
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WEIGHTED AVERAGE MATURITY
(Years) 21.2 16.3 17.5 26.0 19.0 18.4 20
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</TABLE>
Note: The yields have been computed in accordance with current SEC regulations
and will vary, and the principal value of an investment will fluctuate. Shares,
if redeemed, may be worth more or less than their original cost. National
Series' income and a small portion of each State Series' income may be subject
to applicable state and local taxes. A portion of each Series' income dividends
may be subject to the federal alternative minimum tax. Past performance is not
indicative of future investment results.
3
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ANNUAL PERFORMANCE OVERVIEW
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The following is a discussion with your Portfolio Manager regarding Seligman
Municipal Fund Series, Inc., and a chart and table comparing each Series'
performance to the performance of the Lehman Brothers Municipal Bond Index.
YOUR PORTFOLIO MANAGER
- -------------------------
[PHOTO]
- -------------------------
THOMAS G. MOLES is a Managing Director of J. & W. Seligman & Co. Incorporated,
Vice President and Portfolio Manager of Seligman Municipal Fund Series, Inc. and
the other Seligman municipal mutual funds which include 19 separate portfolios,
and President and Portfolio Manager of Seligman Select Municipal Fund and
Seligman Quality Municipal Fund. He is responsible for more than $2 billion in
municipal securities. Mr. Moles, with more than 25 years of experience, has
spearheaded Seligman's municipal investment efforts since joining the firm in
1983.
WHAT ECONOMIC FACTORS AFFECTED SELIGMAN MUNICIPAL FUND SERIES OVER THE PAST 12
MONTHS?
Throughout the fourth quarter of 1995, the majority of market participants
believed that the economy was growing at a moderate pace and that inflation
remained under control. This bullish outlook caused long-term interest rates to
decline steadily during the fourth quarter of 1995 and into the new year. By
February 1996, however, the economy began to exhibit signs of unexpected
strength and interest rates rose sharply on renewed inflation concerns. Since
then, economic data has been mixed, suggesting weakness in some areas and vigor
in others. Given these conflicting economic reports, market participants have
been unable to form a consensus with respect to the economy. As a result, each
new economic release has led to an amplified shift in interest rates.
On September 24, the Federal Reserve Board stated that it had not seen
sufficient evidence of an acceleration in inflation to warrant an increase in
the fed funds rate. The Fed's decision to hold monetary policy steady helped
stabilize the bond market and prompted a modest decline in long-term yields.
Further, by September 30, 1996, long-term municipal yields, as measured by the
Bond Buyer 20-Bond General Obligation Index, stood at 5.76%, down from 6.00% a
year ago.
WHAT MARKET FACTORS INFLUENCED THE FUND OVER THE PAST 12 MONTHS?
In the municipal bond market, year-to-date new issue supply has increased only
marginally over 1995 levels. However, demand, in particular retail demand, has
been strong, resulting in shortages of certain types of municipal bonds. The
supply imbalance pushed buyers to bid up prices to obtain the specific bonds
they required, which caused a compression of yield spreads, or a narrowing of
yield differentials, within the various sectors of the municipal market. For
example, hospital bonds typically trade at higher yields than similarly rated
general obligation bonds, due to their complexity. This year, many typically
higher-yielding issues such as hospital bonds have been trading at or near
general obligation levels. This market aberration provided us an opportunity to
improve the relative value of the portfolios.
4
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WHAT WAS YOUR INVESTMENT STRATEGY IN THE PAST 12 MONTHS?
We believe that the economy is expanding at an acceptable rate of growth and
that inflation remains in check. Therefore, we have been comfortable purchasing
long-term municipal bonds in spite of the market's frequent ups and downs.
Yields on long-term municipal bonds are significantly higher than yields on
short-term municipal securities. For that reason, short-term positions were kept
to a minimum.
Further, to better protect the net asset values of the Fund's Series during
periods of rising interest rates, we concentrated new acquisitions in current
coupon bonds rather than in discount or zero coupon bonds, as the prices of
discount and zero coupon bonds are more vulnerable to rising interest rates.
Though we primarily focus on our long-term goals rather than short-term gains,
we continuously search for ways to improve the relative value of the Fund by
taking advantage of aberrations and inefficiencies within the municipal
marketplace.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Thus far, 1996 has been a challenging year for fixed-income investors. The
debate within the municipal markets over the strength of the economy most likely
will continue to influence the direction of interest rates in the short term.
Our team, however, takes a long-term, conservative approach to managing your
Fund. We believe municipal bond funds will continue to play an important role in
helping investors meet their long-term financial goals, and we remain committed
to maintaining diversified portfolios of quality municipal bonds while providing
our Shareholders with competitive yields.
5
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PERFORMANCE COMPARISON CHARTS AND TABLES
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The following charts compare a $10,000 hypothetical investment made in each
Series of Seligman Municipal Fund Series Class A shares, with and without the
maximum initial sales charge of 4.75%, for the 10-year or since-inception (where
applicable) periods ended September 30, 1996, to a $10,000 hypothetical
investment made in the Lehman Brothers Municipal Bond Index (Lehman Index) for
the same periods. The performance of each Series of Seligman Municipal Fund
Series Class D shares is not shown in the charts but is included in the table
below each chart. It is important to keep in mind that the Lehman Index does not
include any fees or sales charges, and does not reflect state-specific bond
market performance.
SELIGMAN NATIONAL MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
SELIGMAN NATIONAL MUNICIPAL SERIES CLASS A
LEHMAN BROS.
WITH WITHOUT MUNICIPAL BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............... $ 9,528.09 $ 10,000.00 $ 10,000.00
12/31/86 .............. $ 9,915.79 $ 10,406.89 $ 10,346.00
3/31/87 ............... $ 10,265.11 $ 10,773.50 $ 10,596.37
6/30/87 ............... $ 9,683.28 $ 10,162.85 $ 10,309.21
9/30/87 ............... $ 9,302.34 $ 9,763.05 $ 10,052.51
12/31/87 .............. $ 9,774.75 $ 10,258.85 $ 10,501.86
3/31/88 ............... $ 10,045.66 $ 10,543.19 $ 10,863.12
6/30/88 ............... $ 10,416.15 $ 10,932.03 $ 11,356.24
12/31/88 .............. $ 11,135.46 $ 11,686.98 $ 11,566.34
3/31/89 ............... $ 11,238.83 $ 11,795.46 $ 11,642.67
6/30/89 ............... $ 11,911.28 $ 12,501.21 $ 12,331.92
9/30/89 ............... $ 11,764.04 $ 12,346.68 $ 12,340.55
12/31/89 .............. $ 12,229.02 $ 12,834.68 $ 12,872.09
6/18/90 ............... $ 12,465.94 $ 13,083.35 $ 13,173.30
9/30/90 ............... $ 12,246.51 $ 12,853.05 $ 13,181.20
12/31/90 .............. $ 12,940.57 $ 13,581.50 $ 13,749.31
3/31/91 ............... $ 13,164.21 $ 13,816.22 $ 14,060.05
6/30/91 ............... $ 13,443.24 $ 14,109.08 $ 14,359.53
9/30/91 ............... $ 13,990.13 $ 14,683.05 $ 14,918.11
12/31/91 .............. $ 14,425.26 $ 15,139.74 $ 15,419.36
3/31/92 ............... $ 14,390.28 $ 15,103.03 $ 15,465.62
6/30/92 ............... $ 14,964.14 $ 15,705.32 $ 16,053.31
9/30/92 ............... $ 15,226.90 $ 15,981.08 $ 16,478.73
12/31/92 .............. $ 15,562.42 $ 16,333.22 $ 16,778.64
3/31/93 ............... $ 16,350.58 $ 17,160.42 $ 17,401.13
6/30/93 ............... $ 16,991.22 $ 17,832.79 $ 17,970.14
9/30/93 ............... $ 17,663.80 $ 18,538.69 $ 18,577.54
12/31/93 .............. $ 17,756.13 $ 18,635.59 $ 18,837.62
3/31/94 ............... $ 16,299.82 $ 17,107.15 $ 17,803.44
6/30/94 ............... $ 16,398.49 $ 17,210.70 $ 18,001.05
9/30/94 ............... $ 16,281.59 $ 17,088.02 $ 18,123.46
12/31/94 .............. $ 15,989.75 $ 16,781.73 $ 17,862.48
3/31/95 ............... $ 17,308.69 $ 18,165.99 $ 19,125.36
6/30/95 ............... $ 17,751.48 $ 18,630.72 $ 19,586.28
9/30/95 ............... $ 18,150.50 $ 19,049.51 $ 20,150.37
12/31/95 .............. $ 19,204.14 $ 20,155.35 $ 20,980.56
3/31/96 ............... $ 18,787.59 $ 19,718.17 $ 20,726.70
6/30/96 ............... $ 18,914.67 $ 19,851.54 $ 20,886.29
9/30/96 ............... $ 19,415.38 $ 20,377.05 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman National Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman National Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ----- -----
Seligman National
Municipal Series
Class A with Sales Charge 1.86% 5.75% 6.86%
Class A without Sales Charge 6.97 6.77 7.38
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
---- ------
Seligman National
Municipal Series
Class D with CDSL 5.13% n/a
Class D without CDSL 6.13 1.95%
Lehman Index 6.04 4.40
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See page 18 for footnotes.
6
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September 30, 1996
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SELIGMAN COLORADO MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
SELIGMAN COLORADO MUNICIPAL SERIES CLASS A
LEHMAN BROS.
MUNICIPAL BOND
WITH WITHOUT INDEX
SALES CHARGE SALES CHARGE (SERIES A)
------------ ------------ --------
9/30/86 .............. $ 9,528.30 $ 10,000.00 $ 10,000.00
12/31/86 ............. $ 9,860.92 $ 10,349.08 $ 10,346.00
3/31/87 .............. $ 10,072.31 $ 10,570.93 $ 10,596.37
6/30/87 .............. $ 9,678.75 $ 10,157.89 $ 10,309.21
9/30/87 .............. $ 9,225.33 $ 9,682.02 $ 10,052.51
12/31/87 ............. $ 9,798.58 $ 10,283.65 $ 10,501.86
3/31/88 .............. $ 10,157.58 $ 10,660.41 $ 10,863.12
6/30/88 .............. $ 10,398.37 $ 10,913.12 $ 11,072.78
9/30/88 .............. $ 10,718.49 $ 11,249.09 $ 11,356.24
12/31/88 ............. $ 11,039.67 $ 11,586.17 $ 11,566.34
3/31/89 .............. $ 11,156.27 $ 11,708.54 $ 11,642.67
6/30/89 .............. $ 11,782.41 $ 12,365.68 $ 12,331.92
9/30/89 .............. $ 11,757.65 $ 12,339.70 $ 12,340.55
12/31/89 ............. $ 12,147.84 $ 12,749.21 $ 12,814.43
3/31/90 .............. $ 12,074.71 $ 12,672.45 $ 12,872.09
6/30/90 .............. $ 12,356.92 $ 12,968.63 $ 13,173.30
9/30/90 .............. $ 12,272.38 $ 12,879.92 $ 13,181.20
12/31/90 ............. $ 12,761.01 $ 13,392.74 $ 13,749.31
3/31/91 .............. $ 12,973.78 $ 13,616.06 $ 14,060.05
6/30/91 .............. $ 13,210.03 $ 13,864.00 $ 14,359.53
9/30/91 .............. $ 13,640.86 $ 14,316.16 $ 14,918.11
12/31/91 ............. $ 13,960.14 $ 14,651.24 $ 15,419.36
3/31/92 .............. $ 13,929.36 $ 14,618.93 $ 15,465.62
6/30/92 .............. $ 14,390.82 $ 15,103.23 $ 16,053.31
9/30/92 .............. $ 14,696.95 $ 15,424.51 $ 16,478.73
12/31/92 ............. $ 15,030.79 $ 15,774.87 $ 16,778.64
3/31/93 .............. $ 15,529.89 $ 16,298.67 $ 17,401.13
6/30/93 .............. $ 16,028.12 $ 16,821.55 $ 17,970.14
9/30/93 .............. $ 16,539.56 $ 17,358.31 $ 18,577.54
12/31/93 ............. $ 16,701.27 $ 17,528.02 $ 18,837.62
3/31/94 .............. $ 15,887.17 $ 16,673.62 $ 17,803.44
6/30/94 .............. $ 16,028.86 $ 16,822.32 $ 18,001.05
9/30/94 .............. $ 16,056.65 $ 16,851.48 $ 18,123.46
12/31/94 ............. $ 15,844.98 $ 16,629.33 $ 17,862.48
3/31/95 .............. $ 16,850.04 $ 17,684.14 $ 19,125.36
6/30/95 .............. $ 17,139.83 $ 17,988.27 $ 19,586.28
9/30/95 .............. $ 17,430.50 $ 18,293.33 $ 20,150.37
12/31/95 ............. $ 18,057.45 $ 18,951.30 $ 20,980.56
3/31/96 .............. $ 17,843.67 $ 18,726.95 $ 20,726.70
6/30/96 .............. $ 18,026.74 $ 18,919.08 $ 20,886.29
9/30/96 .............. $ 18,259.41 $ 19,163.26 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Colorado Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Colorado Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ----- -----
Seligman Colorado
Municipal Series
Class A with Sales Charge (0.17)% 4.98% 6.21%
Class A without Sales Charge 4.76 6.01 6.72
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
---- ------
Seligman Colorado
Municipal Series
Class D with CDSL 2.96% n/a
Class D without CDSL 3.95 1.89%
Lehman Index 6.04 4.40
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See page 18 for footnotes.
7
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PERFORMANCE COMPARISON CHARTS AND TABLES (continued)
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SELIGMAN GEORGIA MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
SELIGMAN GEORGIA MUNICIPAL SERIES CLASS A
LEHMAN BROS. MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES D)
6/15/87 ........... $ 9,520.00 $ 10,000.00 $ 10,000.00
6/30/87 ........... $ 9,413.33 $ 9,887.95
9/30/87 ........... $ 8,795.01 $ 9,238.45 $ 9,751.00
12/31/87 .......... $ 9,408.85 $ 9,883.25 $ 10,186.87
3/31/88 ........... $ 9,746.26 $ 10,237.68 $ 10,537.30
6/30/88 ........... $ 10,009.51 $ 10,514.20 $ 10,740.67
9/30/88 ........... $ 10,334.58 $ 10,855.65 $ 11,015.63
12/31/88 .......... $ 10,691.63 $ 11,230.70 $ 11,219.42
3/31/89 ........... $ 10,791.50 $ 11,335.61 $ 11,293.47
6/30/89 ........... $ 11,430.34 $ 12,006.66 $ 11,962.04
9/30/89 ........... $ 11,383.14 $ 11,957.07 $ 11,970.41
12/31/89 .......... $ 11,747.04 $ 12,339.33 $ 12,430.08
3/31/90 ........... $ 11,747.04 $ 12,339.33 $ 12,486.01
6/18/90 ........... $ 12,007.71 $ 12,613.15 $ 12,778.18
9/30/90 ........... $ 11,973.62 $ 12,577.34 $ 12,785.85
12/31/90 .......... $ 12,570.46 $ 13,204.28 $ 13,336.92
3/31/91 ........... $ 12,800.49 $ 13,445.91 $ 13,638.34
6/30/91 ........... $ 13,057.80 $ 13,716.20 $ 13,928.83
9/30/91 ........... $ 13,565.90 $ 14,249.93 $ 14,470.66
12/31/91 .......... $ 13,949.88 $ 14,653.26 $ 14,956.88
3/31/92 ........... $ 13,940.70 $ 14,643.60 $ 15,001.75
6/30/92 ........... $ 14,508.36 $ 15,239.88 $ 15,571.82
9/30/92 ........... $ 14,874.38 $ 15,624.36 $ 15,984.47
12/31/92 .......... $ 15,205.41 $ 15,972.09 $ 16,275.39
3/31/93 ........... $ 15,646.24 $ 16,435.13 $ 16,879.20
6/30/93 ........... $ 16,175.66 $ 16,991.24 $ 17,431.15
9/30/93 ........... $ 16,950.57 $ 17,805.24 $ 18,020.33
12/31/93 .......... $ 17,061.47 $ 17,921.74 $ 18,272.61
3/31/94 ........... $ 15,897.11 $ 16,698.67 $ 17,269.44
6/30/94 ........... $ 15,994.79 $ 16,801.27 $ 17,461.14
9/30/94 ........... $ 16,015.12 $ 16,822.62 $ 17,579.87
12/31/94 .......... $ 15,758.18 $ 16,552.72 $ 17,326.72
3/31/95 ........... $ 16,972.31 $ 17,828.08 $ 18,551.72
6/30/95 ........... $ 17,482.68 $ 18,364.18 $ 18,998.82
9/30/95 ........... $ 17,882.41 $ 18,784.05 $ 19,545.98
12/31/95 .......... $ 18,777.23 $ 19,723.98 $ 20,351.28
3/31/96 ........... $ 18,390.69 $ 19,317.96 $ 20,105.03
6/30/96 ........... $ 18,554.70 $ 19,490.25 $ 20,259.84
9/30/96 ........... $ 19,056.27 $ 20,017.11 $ 20,725.81
The table below shows the average annual total returns for the one-year,
five-year, and since-inception periods through September 30, 1996, for Seligman
Georgia Municipal Series Class A shares, with and without the maximum initial
sales charge of 4.75%, and the Lehman Index. Also included in the table are the
average annual total returns for the one-year and since-inception periods
through September 30, 1996, for Seligman Georgia Municipal Series Class D
shares, with and without the effect of the 1% contingent deferred sales load
("CDSL") imposed on shares redeemed within one year of purchase, and the Lehman
Index.
AVERAGE ANNUAL TOTAL RETURNS
SINCE
ONE FIVE INCEPTION
YEAR YEARS 6/15/87
---- ----- -------
Seligman Georgia
Municipal Series
Class A with Sales Charge 1.50% 6.00% 7.18%
Class A without Sales Charge 6.56 7.03 7.75
Lehman Index 6.04 7.45 8.20*
* From 6/30/87.
SINCE
ONE INCEPTION
YEAR 2/1/94
---- ------
Seligman Georgia
Municipal Series
Class D with CDSL 4.60% n/a
Class D without CDSL 5.60 2.91%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
8
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN LOUISIANA MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
SELIGMAN LOUISIANA MUNICIPAL SERIES CLASS A
LEHMAN BROS. MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............... $ 9,519.81 $ 10,000.00 $ 10,000.00
12/31/86 .............. $ 9,849.25 $ 10,346.05 $ 10,346.00
3/31/87 ............... $ 10,216.60 $ 10,731.94 $ 10,596.37
6/30/87 ............... $ 9,867.77 $ 10,365.50 $ 10,309.21
9/30/87 ............... $ 9,578.63 $ 10,061.78 $ 10,052.51
12/31/87 .............. $ 10,092.92 $ 10,602.01 $ 10,501.86
3/31/88 ............... $ 10,417.38 $ 10,942.84 $ 10,863.12
6/30/88 ............... $ 10,636.19 $ 11,172.70 $ 11,072.78
9/30/88 ............... $ 10,985.51 $ 11,539.63 $ 11,356.24
12/31/88 .............. $ 11,227.28 $ 11,793.59 $ 11,566.34
3/31/89 ............... $ 11,360.88 $ 11,933.95 $ 11,642.67
6/30/89 ............... $ 11,974.91 $ 12,578.94 $ 12,331.92
9/30/89 ............... $ 11,978.21 $ 12,582.41 $ 12,340.55
12/31/89 .............. $ 12,365.24 $ 12,988.97 $ 12,814.43
3/31/90 ............... $ 12,367.41 $ 12,991.24 $ 12,872.09
6/30/90 ............... $ 12,670.83 $ 13,309.97 $ 13,173.30
9/30/90 ............... $ 12,601.16 $ 13,236.79 $ 13,181.20
12/31/90 .............. $ 13,213.99 $ 13,880.54 $ 13,749.31
3/31/91 ............... $ 13,491.57 $ 14,172.12 $ 14,060.05
6/30/91 ............... $ 13,772.33 $ 14,467.03 $ 14,359.53
9/30/91 ............... $ 14,301.61 $ 15,023.01 $ 14,918.11
12/31/91 .............. $ 14,718.04 $ 15,460.45 $ 15,419.36
3/31/92 ............... $ 14,701.05 $ 15,442.60 $ 15,465.62
6/30/92 ............... $ 15,305.73 $ 16,077.79 $ 16,053.31
9/30/92 ............... $ 15,607.37 $ 16,394.64 $ 16,478.73
12/31/92 .............. $ 15,871.06 $ 16,671.63 $ 16,778.64
3/31/93 ............... $ 16,475.06 $ 17,306.09 $ 17,401.13
6/30/93 ............... $ 16,973.01 $ 17,829.16 $ 17,970.14
9/30/93 ............... $ 17,495.30 $ 18,377.80 $ 18,577.54
12/31/93 .............. $ 17,687.92 $ 18,580.14 $ 18,837.62
3/31/94 ............... $ 16,735.60 $ 17,579.80 $ 17,803.44
6/30/94 ............... $ 16,807.10 $ 17,654.89 $ 18,001.05
9/30/94 ............... $ 16,824.53 $ 17,673.20 $ 18,123.46
12/31/94 .............. $ 16,647.04 $ 17,486.76 $ 17,862.48
3/31/95 ............... $ 17,741.12 $ 18,636.03 $ 19,125.36
6/30/95 ............... $ 18,089.77 $ 19,002.27 $ 19,586.28
9/30/95 ............... $ 18,556.53 $ 19,492.57 $ 20,150.37
12/31/95 .............. $ 19,493.28 $ 20,476.57 $ 20,980.56
3/31/96 ............... $ 19,176.87 $ 20,144.20 $ 20,726.70
6/30/96 ............... $ 19,238.78 $ 20,209.24 $ 20,886.29
9/30/96 ............... $ 19,729.62 $ 20,724.85 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Louisiana Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Louisiana Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ----- -----
Seligman Louisiana
Municipal Series
Class A with Sales Charge 1.22% 5.61% 7.03%
Class A without Sales Charge 6.32 6.65 7.56
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
---- ------
Seligman Louisiana
Municipal Series
Class D with CDSL 4.37% n/a
Class D without CDSL 5.37 2.79%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
9
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES (continued)
- --------------------------------------------------------------------------------
SELIGMAN MARYLAND MUNICIPAL SERIES CLASS A
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,523.21 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,894.74 $ 10,390.13 $ 10,346.00
3/31/87 ............ $ 10,071.26 $ 10,575.49 $ 10,596.37
6/30/87 ............ $ 9,543.89 $ 10,021.72 $ 10,309.21
9/30/87 ............ $ 9,198.89 $ 9,659.44 $ 10,052.51
12/31/87 ........... $ 9,805.37 $ 10,296.27 $ 10,501.86
3/31/88 ............ $ 10,086.36 $ 10,591.32 $ 10,863.12
6/30/88 ............ $ 10,314.46 $ 10,830.83 $ 11,072.78
9/30/88 ............ $ 10,646.01 $ 11,178.99 $ 11,356.24
12/31/88 ........... $ 10,905.03 $ 11,450.96 $ 11,566.34
3/31/89 ............ $ 11,034.36 $ 11,586.78 $ 11,642.67
6/30/89 ............ $ 11,679.80 $ 12,264.52 $ 12,331.92
9/30/89 ............ $ 11,650.04 $ 12,233.26 $ 12,340.55
12/31/89 ........... $ 12,049.47 $ 12,652.70 $ 12,814.43
3/31/90 ............ $ 12,019.67 $ 12,621.40 $ 12,872.09
6/30/90 ............ $ 12,271.76 $ 12,886.11 $ 13,173.30
9/30/90 ............ $ 12,170.77 $ 12,780.06 $ 13,181.20
12/31/90 ........... $ 12,790.73 $ 13,431.05 $ 13,749.31
3/31/91 ............ $ 13,001.39 $ 13,652.25 $ 14,060.05
6/30/91 ............ $ 13,237.48 $ 13,900.16 $ 14,359.53
9/30/91 ............ $ 13,784.40 $ 14,474.45 $ 14,918.11
12/31/91 ........... $ 14,129.88 $ 14,837.25 $ 15,419.36
3/31/92 ............ $ 14,176.64 $ 14,886.35 $ 15,465.62
6/30/92 ............ $ 14,688.93 $ 15,424.29 $ 16,053.31
9/30/92 ............ $ 15,046.00 $ 15,799.24 $ 16,478.73
12/31/92 ........... $ 15,294.08 $ 16,059.73 $ 16,778.64
3/31/93 ............ $ 15,860.93 $ 16,654.94 $ 17,401.13
6/30/93 ............ $ 16,407.52 $ 17,228.91 $ 17,970.14
9/30/93 ............ $ 17,036.14 $ 17,888.99 $ 18,577.54
12/31/93 ........... $ 17,118.82 $ 17,975.82 $ 18,837.62
3/31/94 ............ $ 16,212.79 $ 17,024.43 $ 17,803.44
6/30/94 ............ $ 16,313.04 $ 17,129.70 $ 18,001.05
9/30/94 ............ $ 16,340.67 $ 17,158.71 $ 18,123.46
12/31/94 ........... $ 16,181.57 $ 16,991.65 $ 17,862.48
3/31/95 ............ $ 17,307.23 $ 18,173.66 $ 19,125.36
6/30/95 ............ $ 17,690.97 $ 18,576.62 $ 19,586.28
9/30/95 ............ $ 18,121.39 $ 19,028.59 $ 20,150.37
12/31/95 ........... $ 18,906.20 $ 19,852.69 $ 20,980.56
3/31/96 ............ $ 18,579.99 $ 19,510.16 $ 20,726.70
6/30/96 ............ $ 18,797.52 $ 19,738.57 $ 20,886.29
9/30/96 ............ $ 19,208.42 $ 20,170.04 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Maryland Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Maryland Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ----- -----
Seligman Maryland
Municipal Series
Class A with Sales Charge 0.93% 5.82% 6.75%
Class A without Sales Charge 6.00 6.86 7.27
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
---- --------
Seligman Maryland
Municipal Series
Class D with CDSL 3.91% n/a
Class D without CDSL 4.91 2.92%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
10
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN MASSACHUSETTS MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ...... $ 9,527.75 $ 10,000.00 $ 10,000.00
12/31/86 ..... $ 9,861.68 $ 10,350.49 $ 10,346.00
3/31/87 ...... $ 10,163.29 $ 10,667.06 $ 10,596.37
6/30/87 ...... $ 9,676.07 $ 10,155.69 $ 10,309.21
9/30/87 ...... $ 9,322.42 $ 9,784.51 $ 10,052.51
12/31/87 ..... $ 9,856.37 $ 10,344.93 $ 10,501.86
3/31/88 ...... $ 10,242.46 $ 10,750.16 $ 10,863.12
6/30/88 ...... $ 10,480.96 $ 11,000.47 $ 11,072.78
9/30/88 ...... $ 10,734.83 $ 11,266.92 $ 11,356.24
12/31/88 ..... $ 10,950.71 $ 11,493.51 $ 11,566.34
3/31/89 ...... $ 11,005.99 $ 11,551.53 $ 11,642.67
6/30/89 ...... $ 11,657.67 $ 12,235.51 $ 12,331.92
9/30/89 ...... $ 11,613.22 $ 12,188.86 $ 12,340.55
12/31/89 ..... $ 11,900.02 $ 12,489.88 $ 12,814.43
3/31/90 ...... $ 11,896.82 $ 12,486.51 $ 12,872.09
6/30/90 ...... $ 12,143.93 $ 12,745.87 $ 13,173.30
9/30/90 ...... $ 11,901.29 $ 12,491.21 $ 13,181.20
12/31/90 ..... $ 12,544.66 $ 13,166.46 $ 13,749.31
3/31/91 ...... $ 12,919.18 $ 13,559.54 $ 14,060.05
6/30/91 ...... $ 13,220.24 $ 13,875.52 $ 14,359.53
9/30/91 ...... $ 13,786.18 $ 14,469.51 $ 14,918.11
12/31/91 ..... $ 14,171.91 $ 14,874.37 $ 15,419.36
3/31/92 ...... $ 14,251.50 $ 14,957.89 $ 15,465.62
6/30/92 ...... $ 14,790.14 $ 15,523.22 $ 16,053.31
9/30/92 ...... $ 15,130.72 $ 15,880.69 $ 16,478.73
12/31/92 ..... $ 15,458.40 $ 16,224.61 $ 16,778.64
3/31/93 ...... $ 16,014.91 $ 16,808.69 $ 17,401.13
6/30/93 ...... $ 16,593.42 $ 17,415.88 $ 17,970.14
9/30/93 ...... $ 17,124.56 $ 17,973.34 $ 18,577.54
12/31/93 ..... $ 17,239.87 $ 18,094.38 $ 18,837.62
3/31/94 ...... $ 16,431.15 $ 17,245.57 $ 17,803.44
6/30/94 ...... $ 16,565.95 $ 17,387.04 $ 18,001.05
9/30/94 ...... $ 16,621.04 $ 17,444.86 $ 18,123.46
12/31/94 ..... $ 16,475.88 $ 17,292.51 $ 17,862.48
3/31/95 ...... $ 17,491.45 $ 18,358.41 $ 19,125.36
6/30/95 ...... $ 17,818.44 $ 18,701.61 $ 19,586.28
9/30/95 ...... $ 18,213.68 $ 19,116.45 $ 20,150.37
12/31/95 ..... $ 19,014.78 $ 19,920.68 $ 20,980.56
3/31/96 ...... $ 18,651.29 $ 19,575.75 $ 20,726.70
6/30/96 ...... $ 18,851.22 $ 19,785.59 $ 20,886.29
9/30/96 ...... $ 19,300.24 $ 20,256.86 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Massachusetts Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Massachusetts Municipal Series Class D shares, with and
without the effect of the 1% contingent deferred sales load ("CDSL") imposed on
shares redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ---- -----
Seligman Massachusetts
Municipal Series
Class A with Sales Charge 0.99% 5.93% 6.80%
Class A without Sales Charge 5.97 6.96 7.31
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
---- --------
Seligman Massachusetts
Municipal Series
Class D with CDSL 4.02% n/a
Class D without CDSL 5.01 2.82%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
11
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES (continued)
- --------------------------------------------------------------------------------
SELIGMAN MICHIGAN MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,520.62 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,821.45 $ 10,315.97 $ 10,346.00
3/31/87 ............ $ 10,077.55 $ 10,584.98 $ 10,596.37
6/30/87 ............ $ 9,652.43 $ 10,138.44 $ 10,309.21
9/30/87 ............ $ 9,247.67 $ 9,713.30 $ 10,052.51
12/31/87 ........... $ 9,780.98 $ 10,273.47 $ 10,501.86
3/31/88 ............ $ 10,132.37 $ 10,642.56 $ 10,863.12
6/30/88 ............ $ 10,408.30 $ 10,932.38 $ 11,072.78
9/30/88 ............ $ 10,725.43 $ 11,265.49 $ 11,356.24
12/31/88 ........... $ 10,997.06 $ 11,550.80 $ 11,566.34
3/31/89 ............ $ 11,110.68 $ 11,670.14 $ 11,642.67
6/30/89 ............ $ 11,809.60 $ 12,404.26 $ 12,331.92
9/30/89 ............ $ 11,787.86 $ 12,381.43 $ 12,340.55
12/31/89 ........... $ 12,174.96 $ 12,788.01 $ 12,814.43
3/31/90 ............ $ 12,166.07 $ 12,778.68 $ 12,872.09
6/30/90 ............ $ 12,454.44 $ 13,081.56 $ 13,173.30
9/30/90 ............ $ 12,326.06 $ 12,946.71 $ 13,181.20
12/31/90 ........... $ 12,886.98 $ 13,535.88 $ 13,749.31
3/31/91 ............ $ 13,154.24 $ 13,816.59 $ 14,060.05
6/30/91 ............ $ 13,443.48 $ 14,120.40 $ 14,359.53
9/30/91 ............ $ 13,970.01 $ 14,673.44 $ 14,918.11
12/31/91 ........... $ 14,434.27 $ 15,161.09 $ 15,419.36
3/31/92 ............ $ 14,461.82 $ 15,190.03 $ 15,465.62
6/30/92 ............ $ 15,046.69 $ 15,804.35 $ 16,053.31
9/30/92 ............ $ 15,443.76 $ 16,221.41 $ 16,478.73
12/31/92 ........... $ 15,778.74 $ 16,573.26 $ 16,778.64
3/31/93 ............ $ 16,313.79 $ 17,135.25 $ 17,401.13
6/30/93 ............ $ 16,912.53 $ 17,764.14 $ 17,970.14
9/30/93 ............ $ 17,447.22 $ 18,325.75 $ 18,577.54
12/31/93 ........... $ 17,590.20 $ 18,475.94 $ 18,837.62
3/31/94 ............ $ 16,776.33 $ 17,621.08 $ 17,803.44
6/30/94 ............ $ 16,872.11 $ 17,721.69 $ 18,001.05
9/30/94 ............ $ 16,941.26 $ 17,794.32 $ 18,123.46
12/31/94 ........... $ 16,739.62 $ 17,582.53 $ 17,862.48
3/31/95 ............ $ 17,840.15 $ 18,738.47 $ 19,125.36
6/30/95 ............ $ 18,147.55 $ 19,061.34 $ 19,586.28
9/30/95 ............ $ 18,560.02 $ 19,494.58 $ 20,150.37
12/31/95 ........... $ 19,381.48 $ 20,357.40 $ 20,980.56
3/31/96 ............ $ 19,067.50 $ 20,027.62 $ 20,726.70
6/30/96 ............ $ 19,211.22 $ 20,178.57 $ 20,886.29
9/30/96 ............ $ 19,703.62 $ 20,695.77 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Michigan Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Michigan Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
----- ------ ------
Seligman Michigan
Municipal Series
Class A with Sales Charge 1.07% 6.08% 7.02%
Class A without Sales Charge 6.16 7.12 7.54
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman Michigan
Municipal Series
Class D with CDSL 4.10% n/a
Class D without CDSL 5.09 2.81%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
12
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN MINNESOTA MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,523.24 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,837.42 $ 10,329.89 $ 10,346.00
3/31/87 ............ $ 10,125.95 $ 10,632.86 $ 10,596.37
6/30/87 ............ $ 9,676.02 $ 10,160.41 $ 10,309.21
9/30/87 ............ $ 9,338.59 $ 9,806.09 $ 10,052.51
12/31/87 ........... $ 9,784.62 $ 10,274.45 $ 10,501.86
3/31/88 ............ $ 10,155.82 $ 10,664.23 $ 10,863.12
6/30/88 ............ $ 10,392.75 $ 10,913.01 $ 11,072.78
9/30/88 ............ $ 10,716.93 $ 11,253.42 $ 11,356.24
12/31/88 ........... $ 10,981.37 $ 11,531.09 $ 11,566.34
3/31/89 ............ $ 11,030.95 $ 11,583.16 $ 11,642.67
6/30/89 ............ $ 11,694.34 $ 12,279.76 $ 12,331.92
9/30/89 ............ $ 11,610.22 $ 12,191.43 $ 12,340.55
12/31/89 ........... $ 12,067.50 $ 12,671.61 $ 12,814.43
3/31/90 ............ $ 12,071.35 $ 12,675.65 $ 12,872.09
6/30/90 ............ $ 12,345.59 $ 12,963.61 $ 13,173.30
9/30/90 ............ $ 12,282.40 $ 12,897.26 $ 13,181.20
12/31/90 ........... $ 12,854.64 $ 13,498.14 $ 13,749.31
3/31/91 ............ $ 13,021.42 $ 13,673.27 $ 14,060.05
6/30/91 ............ $ 13,262.30 $ 13,926.20 $ 14,359.53
9/30/91 ............ $ 13,645.30 $ 14,328.37 $ 14,918.11
12/31/91 ........... $ 13,822.38 $ 14,514.31 $ 15,419.36
3/31/92 ............ $ 13,968.98 $ 14,668.25 $ 15,465.62
6/30/92 ............ $ 14,394.31 $ 15,114.87 $ 16,053.31
9/30/92 ............ $ 14,697.16 $ 15,432.88 $ 16,478.73
12/31/92 ........... $ 14,883.05 $ 15,628.08 $ 16,778.64
3/31/93 ............ $ 15,494.75 $ 16,270.39 $ 17,401.13
6/30/93 ............ $ 16,079.83 $ 16,884.76 $ 17,970.14
9/30/93 ............ $ 16,617.00 $ 17,448.82 $ 18,577.54
12/31/93 ........... $ 16,890.33 $ 17,735.83 $ 18,837.62
3/31/94 ............ $ 16,344.56 $ 17,162.74 $ 17,803.44
6/30/94 ............ $ 16,460.78 $ 17,284.78 $ 18,001.05
9/30/94 ............ $ 16,636.35 $ 17,469.13 $ 18,123.46
12/31/94 ........... $ 16,461.67 $ 17,285.71 $ 17,862.48
3/31/95 ............ $ 17,284.65 $ 18,149.88 $ 19,125.36
6/30/95 ............ $ 17,605.46 $ 18,486.75 $ 19,586.28
9/30/95 ............ $ 17,902.12 $ 18,798.27 $ 20,150.37
12/31/95 ........... $ 18,339.36 $ 19,257.40 $ 20,980.56
3/31/96 ............ $ 18,120.95 $ 19,028.06 $ 20,726.70
6/30/96 ............ $ 18,270.49 $ 19,185.08 $ 20,886.29
9/30/96 ............ $ 18,616.27 $ 19,548.17 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Minnesota Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Minnesota Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
----- ------ ------
Seligman Minnesota
Municipal Series
Class A with Sales Charge (0.95)% 5.38% 6.41%
Class A without Sales Charge 3.99 6.41 6.93
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman Minnesota
Municipal Series
Class D with CDSL 2.08% n/a
Class D without CDSL 3.06 2.33%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
13
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES (continued)
- --------------------------------------------------------------------------------
SELIGMAN MISSOURI MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,518.85 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,804.66 $ 10,300.25 $ 10,346.00
3/31/87 ............ $ 10,048.49 $ 10,556.41 $ 10,596.37
6/30/87 ............ $ 9,619.54 $ 10,105.77 $ 10,309.21
9/30/87 ............ $ 9,119.13 $ 9,580.07 $ 10,052.51
12/31/87 ........... $ 9,773.73 $ 10,267.77 $ 10,501.86
3/31/88 ............ $ 10,128.45 $ 10,640.42 $ 10,863.12
6/30/88 ............ $ 10,393.69 $ 10,919.06 $ 11,072.78
9/30/88 ............ $ 10,645.43 $ 11,183.54 $ 11,356.24
12/31/88 ........... $ 10,991.21 $ 11,546.79 $ 11,566.34
3/31/89 ............ $ 11,045.43 $ 11,603.73 $ 11,642.67
6/30/89 ............ $ 11,681.05 $ 12,271.49 $ 12,331.92
9/30/89 ............ $ 11,638.94 $ 12,227.24 $ 12,340.55
12/31/89 ........... $ 12,029.13 $ 12,637.15 $ 12,814.43
3/31/90 ............ $ 12,021.95 $ 12,629.61 $ 12,872.09
6/30/90 ............ $ 12,339.69 $ 12,963.40 $ 13,173.30
9/30/90 ............ $ 12,274.94 $ 12,895.38 $ 13,181.20
12/31/90 ........... $ 12,862.48 $ 13,512.62 $ 13,749.31
3/31/91 ............ $ 13,111.83 $ 13,774.55 $ 14,060.05
6/30/91 ............ $ 13,418.13 $ 14,096.35 $ 14,359.53
9/30/91 ............ $ 13,945.88 $ 14,650.77 $ 14,918.11
12/31/91 ........... $ 14,324.41 $ 15,048.44 $ 15,419.36
3/31/92 ............ $ 14,327.52 $ 15,051.71 $ 15,465.62
6/30/92 ............ $ 14,861.34 $ 15,612.50 $ 16,053.31
9/30/92 ............ $ 15,043.56 $ 15,803.93 $ 16,478.73
12/31/92 ........... $ 15,363.22 $ 16,139.74 $ 16,778.64
3/31/93 ............ $ 15,885.99 $ 16,688.94 $ 17,401.13
6/30/93 ............ $ 16,438.77 $ 17,269.66 $ 17,970.14
9/30/93 ............ $ 17,025.32 $ 17,885.85 $ 18,577.54
12/31/93 ........... $ 17,115.11 $ 17,980.17 $ 18,837.62
3/31/94 ............ $ 16,069.96 $ 16,882.19 $ 17,803.44
6/30/94 ............ $ 16,161.41 $ 16,978.27 $ 18,001.05
9/30/94 ............ $ 16,199.73 $ 17,018.53 $ 18,123.46
12/31/94 ........... $ 16,033.87 $ 16,844.29 $ 17,862.48
3/31/95 ............ $ 17,205.36 $ 18,074.98 $ 19,125.36
6/30/95 ............ $ 17,519.87 $ 18,405.4 $ 19,586.28
9/30/95 ............ $ 17,928.84 $ 18,835.04 $ 20,150.37
12/31/95 ........... $ 18,751.67 $ 19,699.46 $ 20,980.56
3/31/96 ............ $ 18,383.13 $ 19,312.29 $ 20,726.70
6/30/96 ............ $ 18,595.95 $ 19,535.87 $ 20,886.29
9/30/96 ............ $ 19,052.20 $ 20,015.18 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Missouri Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Missouri Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ---- -----
Seligman Missouri
Municipal Series
Class A with Sales Charge 1.27% 5.42% 6.66%
Class A without Sales Charge 6.27 6.44 7.19
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman Missouri
Municipal Series
Class D with CDSL 4.46% n/a
Class D without CDSL 5.46 2.64%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
14
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN NEW YORK MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,526.01 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,981.59 $ 10,478.25 $ 10,346.00
3/31/87 ............ $ 10,244.29 $ 10,754.02 $ 10,596.37
6/30/87 ............ $ 9,742.68 $ 10,227.44 $ 10,309.21
9/30/87 ............ $ 9,294.93 $ 9,757.43 $ 10,052.51
12/31/87 ........... $ 9,846.98 $ 10,336.95 $ 10,501.86
3/31/88 ............ $ 10,119.32 $ 10,622.84 $ 10,863.12
6/30/88 ............ $ 10,328.56 $ 10,842.50 $ 11,072.78
9/30/88 ............ $ 10,664.58 $ 11,195.23 $ 11,356.24
12/31/88 ........... $ 10,971.28 $ 11,517.19 $ 11,566.34
3/31/89 ............ $ 11,011.43 $ 11,559.35 $ 11,642.67
6/30/89 ............ $ 11,720.37 $ 12,303.56 $ 12,331.92
9/30/89 ............ $ 11,661.54 $ 12,241.81 $ 12,340.55
12/31/89 ........... $ 12,001.58 $ 12,598.76 $ 12,814.43
3/31/90 ............ $ 11,873.84 $ 12,464.66 $ 12,872.09
6/30/90 ............ $ 12,216.80 $ 12,824.70 $ 13,173.30
9/30/90 ............ $ 12,033.58 $ 12,632.36 $ 13,181.20
12/31/90 ........... $ 12,502.58 $ 13,124.69 $ 13,749.31
3/31/91 ............ $ 12,792.91 $ 13,429.47 $ 14,060.05
6/30/91 ............ $ 13,124.05 $ 13,777.08 $ 14,359.53
9/30/91 ............ $ 13,785.57 $ 14,471.52 $ 14,918.11
12/31/91 ........... $ 14,193.75 $ 14,900.00 $ 15,419.36
3/31/92 ............ $ 14,213.93 $ 14,921.19 $ 15,465.62
6/30/92 ............ $ 14,871.53 $ 15,611.51 $ 16,053.31
9/30/92 ............ $ 15,136.56 $ 15,889.74 $ 16,478.73
12/31/92 ........... $ 15,514.80 $ 16,286.80 $ 16,778.64
3/31/93 ............ $ 16,233.34 $ 17,041.07 $ 17,401.13
6/30/93 ............ $ 16,844.91 $ 17,683.07 $ 17,970.14
9/30/93 ............ $ 17,445.60 $ 18,313.66 $ 18,577.54
12/31/93 ........... $ 17,572.40 $ 18,446.78 $ 18,837.62
3/31/94 ............ $ 16,410.32 $ 17,226.87 $ 17,803.44
6/30/94 ............ $ 16,521.45 $ 17,343.53 $ 18,001.05
9/30/94 ............ $ 16,508.74 $ 17,330.18 $ 18,123.46
12/31/94 ........... $ 16,178.85 $ 16,983.87 $ 17,862.48
3/31/95 ............ $ 17,493.74 $ 18,364.19 $ 19,125.36
6/30/95 ............ $ 17,868.16 $ 18,757.23 $ 19,586.28
9/30/95 ............ $ 18,313.85 $ 19,225.10 $ 20,150.37
12/31/95 ........... $ 19,302.54 $ 20,263.00 $ 20,980.56
3/31/96 ............ $ 18,928.36 $ 19,870.19 $ 20,726.70
6/30/96 ............ $ 19,087.62 $ 20,037.37 $ 20,886.29
9/30/96 ............ $ 19,590.09 $ 20,564.84 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman New York Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman New York Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
----- ------ ------
Seligman New York
Municipal Series
Class A with Sales Charge 1.91% 6.23% 6.96%
Class A without Sales Charge 6.97 7.28 7.48
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman New York
Municipal Series
Class D with CDSL 4.86% n/a
Class D without CDSL 5.86 2.69%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
15
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES (continued)
- --------------------------------------------------------------------------------
SELIGMAN OHIO MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,528.86 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,909.36 $ 10,399.31 $ 10,346.00
3/31/87 ............ $ 10,201.63 $ 10,706.03 $ 10,596.37
6/30/87 ............ $ 9,823.53 $ 10,309.23 $ 10,309.21
9/30/87 ............ $ 9,465.75 $ 9,933.76 $ 10,052.51
12/31/87 ........... $ 9,981.60 $ 10,475.12 $ 10,501.86
3/31/88 ............ $ 10,364.18 $ 10,876.61 $ 10,863.12
6/30/88 ............ $ 10,694.04 $ 11,222.79 $ 11,072.78
9/30/88 ............ $ 10,958.00 $ 11,499.80 $ 11,356.24
12/31/88 ........... $ 11,215.46 $ 11,769.98 $ 11,566.34
3/31/89 ............ $ 11,351.54 $ 11,912.79 $ 11,642.67
6/30/89 ............ $ 11,939.12 $ 12,529.43 $ 12,331.92
9/30/89 ............ $ 11,899.79 $ 12,488.14 $ 12,340.55
12/31/89 ........... $ 12,329.80 $ 12,939.41 $ 12,814.43
3/31/90 ............ $ 12,363.21 $ 12,974.48 $ 12,872.09
6/30/90 ............ $ 12,617.31 $ 13,241.14 $ 13,173.30
9/30/90 ............ $ 12,578.24 $ 13,200.14 $ 13,181.20
12/31/90 ........... $ 13,141.49 $ 13,791.25 $ 13,749.31
3/31/91 ............ $ 13,386.83 $ 14,048.71 $ 14,060.05
6/30/91 ............ $ 13,672.93 $ 14,348.95 $ 14,359.53
9/30/91 ............ $ 14,208.01 $ 14,910.49 $ 14,918.11
12/31/91 ........... $ 14,628.38 $ 15,351.64 $ 15,419.36
3/31/92 ............ $ 14,669.28 $ 15,394.56 $ 15,465.62
6/30/92 ............ $ 15,245.13 $ 15,998.88 $ 16,053.31
9/30/92 ............ $ 15,582.77 $ 16,353.20 $ 16,478.73
12/31/92 ........... $ 15,861.84 $ 16,646.06 $ 16,778.64
3/31/93 ............ $ 16,428.91 $ 17,241.18 $ 17,401.13
6/30/93 ............ $ 17,010.61 $ 17,851.64 $ 17,970.14
9/30/93 ............ $ 17,579.36 $ 18,448.50 $ 18,577.54
12/31/93 ........... $ 17,707.99 $ 18,583.49 $ 18,837.62
3/31/94 ............ $ 16,842.03 $ 17,674.72 $ 17,803.44
6/30/94 ............ $ 17,018.04 $ 17,859.43 $ 18,001.05
9/30/94 ............ $ 17,037.57 $ 17,879.94 $ 18,123.46
12/31/94 ........... $ 16,839.10 $ 17,671.65 $ 17,862.48
3/31/95 ............ $ 17,928.31 $ 18,814.71 $ 19,125.36
6/30/95 ............ $ 18,285.98 $ 19,190.06 $ 19,586.28
9/30/95 ............ $ 18,671.32 $ 19,594.45 $ 20,150.37
12/31/95 ........... $ 19,403.74 $ 20,363.08 $ 20,980.56
3/31/96 ............ $ 19,090.78 $ 20,034.64 $ 20,726.70
6/30/96 ............ $ 19,301.78 $ 20,256.07 $ 20,886.29
9/30/96 ............ $ 19,730.99 $ 20,706.50 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Ohio Municipal Series
Class A shares, with and without the maximum initial sales charge of 4.75%, and
the Lehman Index. Also included in the table are the average annual total
returns for the one-year and since-inception periods through September 30, 1996,
for Seligman Ohio Municipal Series Class D shares, with and without the effect
of the 1% contingent deferred sales load ("CDSL") imposed on shares redeemed
within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
----- ------ ------
Seligman Ohio
Municipal Series
Class A with Sales Charge 0.71% 5.76% 7.03%
Class A without Sales Charge 5.68 6.79 7.55
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman Ohio
Municipal Series
Class D with CDSL 3.74% n/a
Class D without CDSL 4.74 2.83%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
16
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN OREGON MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
10/15/86 ........... $ 9,520.00 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,739.36 $ 10,230.41 $ 10,170.00
3/30/87 ............ $ 9,932.37 $ 10,433.16 $ 10,416.11
6/30/87 ............ $ 9,282.37 $ 9,750.39 $ 10,133.84
9/30/87 ............ $ 8,788.47 $ 9,231.59 $ 9,881.50
12/31/87 ........... $ 9,343.08 $ 9,814.16 $ 10,323.21
3/31/88 ............ $ 9,675.20 $ 10,163.02 $ 10,678.33
6/30/88 ............ $ 10,025.46 $ 10,530.94 $ 10,884.42
9/30/88 ............ $ 10,360.96 $ 10,883.35 $ 11,163.06
12/31/88 ........... $ 10,667.96 $ 11,205.83 $ 11,369.58
3/31/89 ............ $ 10,743.56 $ 11,285.24 $ 11,444.61
6/30/89 ............ $ 11,440.47 $ 12,017.28 $ 12,122.14
9/30/89 ............ $ 11,391.86 $ 11,966.22 $ 12,130.62
12/31/89 ........... $ 11,781.78 $ 12,375.80 $ 12,596.44
3/31/90 ............ $ 11,735.60 $ 12,327.29 $ 12,653.12
6/30/90 ............ $ 12,051.00 $ 12,658.60 $ 12,949.20
9/30/90 ............ $ 11,960.13 $ 12,563.14 $ 12,956.97
12/31/90 ........... $ 12,546.86 $ 13,179.46 $ 13,515.42
3/31/91 ............ $ 12,806.69 $ 13,452.38 $ 13,820.87
6/30/91 ............ $ 13,075.79 $ 13,735.06 $ 14,115.25
9/30/91 ............ $ 13,545.48 $ 14,228.43 $ 14,664.34
12/31/91 ........... $ 13,904.60 $ 14,605.65 $ 15,157.06
3/31/92 ............ $ 13,948.67 $ 14,651.94 $ 15,202.53
6/30/92 ............ $ 14,377.50 $ 15,102.41 $ 15,780.22
9/30/92 ............ $ 14,676.59 $ 15,416.57 $ 16,198.40
12/31/92 ........... $ 14,985.89 $ 15,741.47 $ 16,493.21
3/31/93 ............ $ 15,443.91 $ 16,222.57 $ 17,105.11
6/30/93 ............ $ 15,952.27 $ 16,756.57 $ 17,664.45
9/30/93 ............ $ 16,468.60 $ 17,298.93 $ 18,261.51
12/31/93 ........... $ 16,619.69 $ 17,457.63 $ 18,517.17
3/31/94 ............ $ 15,875.56 $ 16,675.98 $ 17,500.57
6/30/94 ............ $ 16,013.45 $ 16,820.82 $ 17,694.83
9/30/94 ............ $ 16,077.03 $ 16,887.61 $ 17,815.16
12/31/94 ........... $ 15,861.06 $ 16,660.75 $ 17,558.62
3/31/95 ............ $ 16,835.71 $ 17,684.52 $ 18,800.01
6/30/95 ............ $ 17,171.00 $ 18,036.72 $ 19,253.09
9/30/95 ............ $ 17,532.12 $ 18,416.06 $ 19,807.58
12/31/95 ........... $ 18,168.21 $ 19,084.22 $ 20,623.65
3/31/96 ............ $ 17,886.63 $ 18,788.44 $ 20,374.11
6/30/96 ............ $ 18,076.55 $ 18,987.93 $ 20,530.99
9/30/96 ............ $ 18,456.54 $ 19,387.10 $ 21,003.20
The table below shows the average annual total returns for the one-year,
five-year, and since-inception periods through September 30, 1996, for Seligman
Oregon Municipal Series Class A shares, with and without the maximum initial
sales charge of 4.75%, and the Lehman Index. Also included in the table are the
average annual total returns for the one-year and since-inception periods
through September 30, 1996, for Seligman Oregon Municipal Series Class D shares,
with and without the effect of the 1% contingent deferred sales load ("CDSL")
imposed on shares redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
SINCE
ONE FIVE INCEPTION
YEAR YEARS 10/15/86
----- ------ ----------
Seligman Oregon
Municipal Series
Class A with Sales Charge 0.30% 5.35% 6.34%
Class A without Sales Charge 5.27 6.38 6.87
Lehman Index 6.04 7.45 7.77*
* From 10/31/8%6
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman Oregon
Municipal Series
Class D with CDSL 3.33% n/a
Class D without CDSL 4.33 2.64%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
17
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES (continued) September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN SOUTH CAROLINA MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
6/30/87 ............ $ 9,520.00 $ 10,000.00 $ 10,000.00
9/30/87 ............ $ 9,009.03 $ 9,463.26 $ 9,751.00
12/31/87 ........... $ 9,582.65 $ 10,065.81 $ 10,186.87
3/31/88 ............ $ 9,906.29 $ 10,405.76 $ 10,537.30
6/30/88 ............ $ 10,141.85 $ 10,653.20 $ 10,740.67
9/30/88 ............ $ 10,466.76 $ 10,994.49 $ 11,015.63
12/31/88 ........... $ 10,776.14 $ 11,319.46 $ 11,219.42
3/31/89 ............ $ 10,833.49 $ 11,379.69 $ 11,293.47
6/30/89 ............ $ 11,530.38 $ 12,111.72 $ 11,962.04
9/30/89 ............ $ 11,451.60 $ 12,028.97 $ 11,970.41
12/31/89 ........... $ 11,918.91 $ 12,519.84 $ 12,430.08
3/31/90 ............ $ 11,873.26 $ 12,471.89 $ 12,486.01
6/30/90 ............ $ 12,161.35 $ 12,774.50 $ 12,778.18
9/30/90 ............ $ 11,964.34 $ 12,567.55 $ 12,785.85
12/31/90 ........... $ 12,635.41 $ 13,272.46 $ 13,336.92
3/31/91 ............ $ 12,881.38 $ 13,530.84 $ 13,638.34
6/30/91 ............ $ 13,152.03 $ 13,815.13 $ 13,928.83
9/30/91 ............ $ 13,633.01 $ 14,320.36 $ 14,470.66
12/31/91 ........... $ 14,090.86 $ 14,801.30 $ 14,956.88
3/31/92 ............ $ 14,154.25 $ 14,867.87 $ 15,001.75
6/30/92 ............ $ 14,692.10 $ 15,432.84 $ 15,571.82
9/30/92 ............ $ 15,007.05 $ 15,763.67 $ 15,984.47
12/31/92 ........... $ 15,273.27 $ 16,043.31 $ 16,275.39
3/31/93 ............ $ 15,782.75 $ 16,578.47 $ 16,879.20
6/30/93 ............ $ 16,321.17 $ 17,144.05 $ 17,431.15
9/30/93 ............ $ 16,886.27 $ 17,737.64 $ 18,020.33
12/31/93 ........... $ 17,061.22 $ 17,921.41 $ 18,272.61
3/31/94 ............ $ 16,007.22 $ 16,814.26 $ 17,269.44
6/30/94 ............ $ 16,102.88 $ 16,914.75 $ 17,461.14
9/30/94 ............ $ 16,106.44 $ 16,918.48 $ 17,579.87
12/31/94 ........... $ 15,917.81 $ 16,720.34 $ 17,326.72
3/31/95 ............ $ 17,068.52 $ 17,929.05 $ 18,551.72
6/30/95 ............ $ 17,423.54 $ 18,301.98 $ 18,998.82
9/30/95 ............ $ 17,828.08 $ 18,726.90 $ 19,545.98
12/31/95 ........... $ 18,727.78 $ 19,671.96 $ 20,351.28
3/31/96 ............ $ 18,368.60 $ 19,294.68 $ 20,105.03
6/30/96 ............ $ 18,565.96 $ 19,501.97 $ 20,259.84
9/30/96 ............ $ 19,044.42 $ 20,004.55 $ 20,725.81
The table below shows the average annual total returns for the one-year,
five-year, and since-inception periods through September 30, 1996, for Seligman
South Carolina Municipal Series Class A shares, with and without the maximum
initial sales charge of 4.75%, and the Lehman Index. Also included in the table
are the average annual total returns for the one-year and since-inception
periods through September 30, 1996, for Seligman South Carolina Municipal Series
Class D shares, with and without the effect of the 1% contingent deferred sales
load ("CDSL") imposed on shares redeemed within one year of purchase, and the
Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
SINCE
ONE FIVE INCEPTION
YEAR YEARS 6/30/87
----- ------ ----------
Seligman South Carolina
Municipal Series
Class A with Sales Charge 1.72% 5.89% 7.20%
Class A without Sales Charge 6.82 6.91 7.78
Lehman Index 6.04 7.45 8.20
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman South Carolina
Municipal Series
Class D with CDSL 4.73% n/a
Class D without CDSL 5.73 2.80%
Lehman Index 6.04 4.40
- ----------
No adjustment was made to Class A shares' performance for periods prior to
January 1, 1993, the commencement date for the annual Administration,
Shareholder Services and Distribution Plan fee of up to 0.25% of average daily
net assets of each Series. The performance of Class D shares will be greater
than or less than the performance shown for Class A shares, based on differences
in sales charges and fees paid by shareholders. Performance data quoted
represent changes in price and assume that all distributions within the periods
are invested in additional shares. The investment return and principal value of
an investment will fluctuate. Shares, if redeemed, may be worth more or less
than their original cost. Past performance is not indicative of future
investment results.
18
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL SERIES
FACE RATINGS MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
----- ------ --------------- ------------ -----
<S> <C> <C> <C> <C>
ALASKA -- 4.5% $5,000,000 Valdez Marine Terminal Rev. (BP Pipeline Inc. Project),
5 1/2% due 10/1/2028 ............................................... Aa3/AA $ 4,703,500
ARIZONA -- 2.6% 3,000,000 Phoenix Civic Improvement Corporation (New City Hall Project),
5.10% due 7/1/2028.................................................. Aa/AA+ 2,724,750
CALIFORNIA -- 2.5% 2,500,000 San Joaquin Hills Transportation Corridor Agency Rev.
(Orange County Senior Lien Toll Road), 6 3/4% due 1/1/2032 ......... NR/NR 2,597,275
FLORIDA -- 4.6% 2,750,000 Jacksonville Electric Authority (Electric System Rev.),
5 1/4% due 10/1/2028................................................ Aa1/AA 2,546,060
2,500,000 Jacksonville Health Facilities Authority Hospital Rev. (Daughters
of Charity National Health System -- St. Vincent's Medical
Center Inc.), 5% due 11/15/2015..................................... Aa/AA 2,222,875
ILLINOIS -- 9.4% 1,000,000 Illinois Health Facilities Authority Rev. (Northwestern Memorial
Hospital), 6.10% due 8/15/2014...................................... Aa/AA 1,012,490
1,250,000 Illinois Health Facilities Authority Rev. (Edward Hospital Project),
6% due 2/15/2019.................................................... A/ A 1,228,763
2,500,000 Illinois Health Facilities Authority Rev. (Northwestern Memorial
Hospital), 6% due 8/15/2024......................................... Aa/AA 2,518,300
5,000,000 Regional Transportation Authority GOs (Cook, DuPage, Kane,
Lake, McHenry, and Will Counties), 5.85% due 6/1/2023............... Aaa/AAA 4,979,450
KENTUCKY -- 2.0% 1,880,000 Trimble County Pollution Control Rev. (Louisville
Gas & Electric Co. Project), 7 5/8% due 11/1/2020*.................. Aa2/AA 2,063,845
MASSA- 2,000,000 Massachusetts Health &Education Facilities Authority Rev.
CHUSETTS -- 2.1% (Amherst College), 6.80% due 11/1/2021.............................. Aa1/AA+ 2,147,920
MICHIGAN -- 2.2% 2,250,000 Michigan State Strategic Fund Pollution Control Rev.
(General Motors Corp.), 6.20% due 9/1/2020.......................... A3/A- 2,282,287
MISSOURI -- 4.9% 5,000,000 St. Louis Industrial Development Authority Pollution Control Rev.
(Anheuser-Busch Companies, Inc. Project), 5 7/8% due 11/1/2026*..... A1/AA- 5,029,650
NEW YORK -- 6.5% 3,410,000 New York City GOs, 7 1/4% due 8/15/2024................................ Baa1/BBB+ 3,602,256
90,000 New York City GOs, 7 1/4% due 8/15/2024 ............................... Baa1/BBB+ 99,600
3,000,000 United Nations Development Corp. Rev., 6 1/4% due 7/1/2026............. A/NR 3,033,870
NORTH 2,000,000 Mercer County Pollution Control Rev. (Otter Tail Power Company
DAKOTA -- 2.0% Project), 6.90% due 2/1/2019........................................ Aa3/AA- 2,134,540
OKLAHOMA -- 4.4%. 5,000,000 Oklahoma Industrial Authority Health Facilities Rev. (Sisters
of Mercy Health System, St. Louis, Inc.), 5% due 6/1/2013........... Aa/AA 4,541,050
SOUTH 2,000,000 Oconee County Pollution Control Rev. (Duke Power Company
CAROLINA -- 2.1% Project), 7 1/2% due 2/1/2017....................................... Aa2/AA- 2,165,700
SOUTH 6,000,000 South Dakota Housing Development Authority Rev.
DAKOTA -- 5.7% (Homeownership Mortgage), 6.15% due 5/1/2026*....................... Aa1/AAA 5,943,120
TENNESSEE -- 3.0% 3,000,000 Metropolitan Government of Nashville & Davidson County GOs,
6.15% due 5/15/2025................................................. Aa/AA 3,074,850
TEXAS -- 25.3% 3,000,000 Brazos River Authority Pollution Control Rev. (Houston Light &
Power Company Project), 7 7/8% due 11/1/2018*....................... A2/A 3,065,850
3,700,000 Harris County Health Facilities Development Corp. Hospital Rev.
(St. Luke's Episcopal Hospital Project), 6 3/4% due 2/15/2021....... Aa/AA 3,920,890
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
19
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL SERIES (continued)
FACE RATINGS MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
----- ------ --------------- ------------ -----
<S> <C> <C> <C> <C>
TEXAS (continued) $2,000,000 Harris County Health Facilities Development Corp. SCH Health
Care System Rev. (Sisters of Charity of the Incarnate Word),
7.10% due 7/1/2021.................................................. Aa/AA $ 2,156,820
5,000,000 Potter County Industrial Development Corp. Pollution
Control Rev. (Southwestern Public Service Company Project),
5 3/4% due 9/1/2016 ................................................ Aaa/AAA 4,970,400
5,500,000 San Antonio Electric & Gas Rev., 5% due 2/1/2017....................... Aa1/AA 5,002,580
2,000,000 Texas State Turnpike Authority Rev. (Dallas North Thruway --
Addison Airport Toll Tunnel Project), 6 3/4% due 1/1/2015........... Aaa/AAA 2,209,080
2,715,000 Texas Veterans' Housing Assistance GOs, 6.80% due 12/1/2023*........... Aa/AA 2,800,523
2,000,000 Travis County Housing Finance Corporation (Single Family
Mortgage Rev.), 6.95% due 10/1/2027................................. NR/AAA 2,111,360
VIRGINIA -- 4.9% 5,000,000 Fairfax County Industrial Development Authority Health Care
Rev. (Inova Health System Project), 6% due 8/15/2026................ Aa/AA 5,032,500
WASH- 3,000,000 Seattle Metropolitan Sewer Rev., 6.60% due 1/1/2032.................... Aaa/AAA 3,205,140
INGTON -- 3.1%
WISCONSIN 6,000,000 LaCrosse Resource Recovery Rev. (Northern States Power
--5.8% Company Project), 6% due 11/1/2021*................................. A2/AA- 5,970,360
WYOMING -- 3.9% 4,000,000 Sweetwater County Pollution Control Rev. (Idaho Power
Company Project), 6.05% due 7/15/2026............................... A3/A 4,016,640
------------
Total Municipal Bonds (Cost $103,673,349) -- 101.5%.................................................................. 105,114,294
Variable Rate Demand Notes (Cost $2,900,000) -- 2.8% ................................................................ 2,900,000
Other Assets Less Liabilities -- (4.3)%.............................................................................. (4,420,941)
------------
NET ASSETS -- 100.0% ................................................................................................ $103,593,353
============
</TABLE>
<TABLE>
<CAPTION>
COLORADO SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 3,000,000 Adams County, CO Pollution Control Rev. (Public Service Co. of Colorado Project),
5 7/8% due 4/1/2014 .................................................................. Aaa/AAA $ 3,017,160
1,500,000 Colorado Association of School Boards Lease Purchase Finance Program Certificates
of Participation (Pueblo School District No. 60), 7 1/4% due 12/1/2009 ................ Aaa/AAA 1,638,120
3,000,000 Colorado Health Facilities Authority Rev. (Sisters of Charity Health Care Systems, Inc.),
6% due 5/15/2013 ...................................................................... Aaa/AAA 3,049,290
3,000,000 Colorado Health Facilities Authority Rev. (North Colorado Medical Center),
6% due 5/15/2020 ...................................................................... Aaa/AAA 3,029,910
365,000 Colorado Housing Finance Authority Rev., 7 1/4% due 9/1/2006 ............................. A/A 372,840
605,000 Colorado Housing Finance Authority (Single Family Housing Rev.), 7 1/4% due 11/1/2010 .... Aa/AA+ 606,537
2,085,000 Colorado Housing Finance Authority (Single Family Housing Rev.), 5.85% due 11/1/2015 ..... Aa/AA+ 2,091,630
250,000 Colorado Housing Finance Authority (Single Family Residential Housing Rev.),
8% due 3/1/2017 ....................................................................... Aa/NR 255,385
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
20
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLORADO SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 3,500,000 Colorado Springs, CO Utilities Rev., 6 1/8% due 11/15/2020 ............................... Aa/AA $ 3,568,495
1,000,000 Colorado Water Resources & Power Development Authority (Clean Water Bonds),
6 7/8% due 9/1/2011 .................................................................. Aa/AA+ 1,089,120
2,000,000 Colorado Water Resources & Power Development Authority (Clean Water Bonds),
6% due 9/1/2014 ....................................................................... Aa/AA 2,038,980
1,000,000 Colorado Water Resources & Power Development Authority (Clean Water Rev.),
6.30% due 9/1/2014 .................................................................... Aa/AA 1,050,090
2,000,000 Denver, CO City & County (St. Anthony Hospital Systems Rev.), 7 3/4% due 5/1/2014 ........ Aaa/AAA 2,180,360
2,500,000 Denver, CO City & County (Sisters of Charity of Leavenworth Health Services
Corporation), 5% due 12/1/2023 ........................................................ Aa/AA 2,212,375
2,250,000 Denver, CO City & County Excise Tax Rev., 6 1/2% due 9/1/2014 ............................ Aaa/AAA 2,356,043
1,985,000 Fort Collins, CO GOs Water Bonds, 6 3/8% due 12/1/2012 ................................... Aa/AA 2,112,397
2,500,000 Fort Collins Pollution Control Rev. (Anheuser-Busch Project), 6% due 9/1/2031 ............ A1/AA- 2,528,800
3,000,000 Fountain Valley Authority, CO Water Treatment Rev., 6.80% due 12/1/2019 .................. Aa/AA 3,266,370
2,000,000 Northgate Public Building Authority, CO (Landowner Assessment Lien),
8 1/4% due 12/1/2001** ................................................................ NR/NR 500,000
1,895,000 Northglenn, CO Joint Water & Wastewater Utility, 6.80% due 12/1/2008 ..................... Aaa/NR 1,941,920
2,500,000 Platte River Power Authority, CO Power Rev., 6 1/8% due 6/1/2014 ......................... Aa/A+ 2,579,125
2,000,000 Pueblo County, CO Single Family Mortgage Rev., 7.05% due 11/1/2027 ....................... NR/AAA 2,101,440
2,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 .......... Baa1/A 1,892,240
3,000,000 University of Colorado Hospital Authority Hospital Rev., 6.40% due 11/15/2022 ............ Aaa/AAA 3,154,710
2,000,000 Westminster, CO (Adams & Jefferson Counties) Sales & Use Tax Rev., 7% due 12/1/2008 ...... Aaa/AAA 2,199,800
------------
Total Municipal Bonds (Cost $50,058,496)-- 96.7% .................................................................. 50,833,137
Variable Rate Demand Notes (Cost $800,000)-- 1.5% ................................................................. 800,000
Other Assets Less Liabilities-- 1.8% .............................................................................. 916,992
------------
NET ASSETS -- 100.0% .............................................................................................. $ 52,550,129
============
</TABLE>
<TABLE>
<CAPTION>
GEORGIA SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 1,095,000 Augusta, GA Water & Sewer Rev., 6 1/2% due 5/1/2011 .................................... A/NR $ 1,166,974
1,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 7.40% due 11/1/2010* .............................................. A1/AA- 1,181,480
2,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 6 3/4% due 2/1/2012* .............................................. A1/AA- 2,152,960
3,000,000 Chatham County, GA School District GOs, 5 1/2% due 8/1/2020 ............................ Aaa/AAA 2,917,860
750,000 Chatham County Hospital Authority, GA Rev. (Memorial Medical Center, Inc.),
7% due 1/1/2021 ..................................................................... Aaa/AAA 817,703
2,000,000 Columbia County, GA School District GOs, 6 1/4% due 4/1/2013 ........................... Aaa/AAA 2,112,900
1,000,000 Columbia County, GA Water & Sewerage Rev., 6 1/4% due 6/1/2012 ......................... Aaa/AAA 1,042,440
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
** Non-income producing, security in default.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
21
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GEORGIA SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 1,000,000 DeKalb County, GA GOs, 5 1/4% due 1/1/2020 ................................................. Aa1/AA+ $ 943,560
1,000,000 DeKalb County, GA Water & Sewerage Rev., 5 3/4% due 10/1/2006 .............................. Aaa/AAA 1,047,320
1,000,000 DeKalb County, GA Water & Sewerage Rev., 7% due 10/1/2014 .................................. Aaa/AA 1,106,600
2,000,000 DeKalb County, GA Water & Sewerage Rev., 5 1/4% due 10/1/2023 .............................. Aa/AA 1,892,500
700,000 DeKalb Private Hospital Authority, GA Rev. (Emory University Project),
6 3/4% due 4/1/2017 ..................................................................... Aa1/AA 741,706
300,000 DeKalb Private Hospital Authority, GA Rev. (Emory University Project), 7% due 4/1/2021 ..... Aa1/AA 322,683
1,000,000 Fayette County, GA School District GOs, 6 1/8% due 3/1/2015 ................................ Aa/A+ 1,037,970
3,000,000 Fulton County, GA School District GOs, 5 5/8% due 1/1/2021 ................................. Aa/AA 2,966,430
2,975,000 Georgia Housing & Finance Authority Rev. (Single Family Mortgage),
5 1/4% due 12/1/2020 .................................................................... Aa/AA+ 2,695,469
2,500,000 Georgia Municipal Gas Authority Rev. (Southern Storage Gas Project),
6.40% due 7/1/2014 ...................................................................... NR/A- 2,586,725
410,000 Georgia Residential Finance Authority Homeownership Mortgage Rev.,
7.20% due 12/1/2011* .................................................................... Aa/AA+ 428,975
1,000,000 Georgia State GOs, 5 3/4% due 2/1/2011 ..................................................... Aaa/AA+ 1,029,160
1,750,000 Glynn-Brunswick Memorial Hospital Authority Rev. (Southeast Georgia Health
Systems Project), 6% due 8/1/2016 ....................................................... Aaa/AAA 1,776,512
1,500,000 Gwinnett County, GA Hospital Authority Rev. Anticipation Certificates
(Gwinnett Hospital System, Inc. Project), 5% due 9/1/2019 ............................... Aaa/AAA 1,348,830
1,000,000 Gwinnett County, GA School District GOs, 6.40% due 2/1/2012 ................................ Aa1/AA 1,098,900
735,000 Gwinnett County, GA Water & Sewerage Authority Rev., 6 1/2% due 8/1/2006 ................... Aa1/AA+ 736,191
1,500,000 Henry County School District, GA GOs, 6.45% due 8/1/2011 ................................... A1/A+ 1,644,705
1,000,000 Metropolitan Atlanta Rapid Transit Authority, GA Sales Tax Rev., 7 1/4% due 7/1/2010 ....... A1/AA- 1,063,030
500,000 Metropolitan Atlanta Rapid Transit Authority, GA Sales Tax Rev., 6 1/4% due 7/1/2018 ....... A1/AA- 535,285
2,000,000 Monroe County, GA Development Authority Pollution Control Rev. (Georgia Power
Company Plant-- Scherer Project), 6% due 7/1/2025 ....................................... Aaa/AAA 2,014,260
2,500,000 Private Colleges & Universities Authority, GA (Spelman College Project),
6.20% due 6/1/2014 ...................................................................... Aaa/AAA 2,623,925
1,500,000 Private Colleges & Universities Authority, GA (Mercer University Project),
6 1/2% due 11/1/2015 .................................................................... Aaa/AAA 1,670,130
3,000,000 Private Colleges & Universities Authority, GA (Agnes Scott College Project),
5 5/8% due 6/1/2023 ..................................................................... Aa/AA- 2,944,890
500,000 Private Colleges & Universities Authority, GA (Emory University Project),
6.40% due 10/1/2023 ..................................................................... Aa1/AA 524,205
2,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2019 ........... Baa1/A 1,895,540
1,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 ........... Baa1/A 946,120
2,000,000 Savannah, GA Airport Rev., 6 1/4% due 1/1/2015* ............................................ Aaa/AAA 2,067,980
-----------
Total Municipal Bonds (Cost $49,614,045) -- 95.8% ................................................................... 51,081,918
Variable Rate Demand Notes (Cost $400,000) -- 0.7% .................................................................. 400,000
Other Assets Less Liabilities -- 3.5% ............................................................................... 1,840,447
-----------
NET ASSETS -- 100.0% ................................................................................................ $53,322,365
===========
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
22
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LOUISIANA SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 1,055,000 Alexandria, LA Utilities Rev., 5.30% due 5/1/2013 ........................................ Aaa/AAA $ 1,011,144
3,000,000 Bastrop, LA Industrial Development Board Pollution Control Rev. (International Paper
Company Project), 6.90% due 3/1/2007 .................................................. A3/A- 3,239,370
2,420,000 East Baton Rouge Parish, LA Mortgage Finance Authority (Single Family
Mortgage Rev.), 5.40% due 10/1/2025 ................................................... Aaa/NR 2,243,413
1,000,000 East Baton Rouge Parish, LA Public Improvement Sales & Use Tax Rev.,
7 1/4% due 2/1/2009 ................................................................... Aaa/AAA 1,079,310
3,000,000 East Baton Rouge Parish, LA Public Improvement Sales & Use Tax Rev.,
5.90% due 2/1/2018 .................................................................... Aaa/AAA 3,034,500
3,500,000 East Baton Rouge Parish, LA Sales Tax Rev., 4.90% due 2/1/2016 .......................... Aaa/AAA 3,162,810
2,000,000 Houma, LA Utilities Rev., 6 1/4% due 1/1/2012 ............................................ Aaa/AAA 2,099,380
2,000,000 Jefferson Parish, LA Home Mortgage Authority (Single Family Mortgage Rev.),
6% due 12/1/2024* ..................................................................... Aa/NR 1,936,500
1,000,000 Jefferson Parish School Board, LA Sales Tax School Bonds, 6 1/4% due 2/1/2008 ............ Aaa/AAA 1,063,280
3,000,000 Lafayette, LA Public Improvement Sales Tax Rev., 5.20% due 5/1/2011 ...................... Aaa/AAA 2,870,370
500,000 Lafayette, LA Public Power Authority Electric Rev., 5 1/2% due 11/1/2011 ................. Aaa/NR 493,425
500,000 Lafayette, LA Public Power Authority Electric Rev., 5 1/2% due 11/1/2012 ................. Aaa/NR 490,565
2,500,000 Louisiana Housing Finance Agency Mortgage Rev. (Single Family), 6.45% due 6/1/2027* ...... Aaa/AAA 2,537,675
2,500,000 Louisiana Public Facilities Authority Hospital Rev. (Our Lady of Lourdes Regional
Medical Center Project), 6.45% due 2/1/2022 ........................................... Aaa/AAA 2,627,875
2,500,000 Louisiana Public Facilities Authority Rev. (Sisters of Mercy Health System, St. Louis, Inc.),
7 3/8% due 6/1/2019 ................................................................... Aaa/AA 2,730,375
1,900,000 Louisiana Public Facilities Authority Rev. (Sisters of Mercy Health System, St. Louis, Inc.),
5% due 6/1/2019 ....................................................................... Aa/AA 1,747,639
3,000,000 Louisiana Public Facilities Authority Rev. (Tulane University), 5 3/4% due 2/15/2021 ..... Aaa/AAA 2,976,450
4,000,000 Louisiana State GOs, 6 1/2% due 5/1/2011 ................................................. Aaa/AAA 4,295,000
2,000,000 Louisiana State University & Agricultural & Mechanical College Auxiliary Rev.,
5 3/4% due 7/1/2014 ................................................................... Aaa/AAA 2,002,760
1,000,000 Ouachita Parish, LAHospital Service District Rev. (Glenwood Regional Medical Center),
5 3/4% due 5/15/2021 .................................................................. Aaa/AAA 988,250
190,000 Ouachita Parish, LA Industrial Development Rev. (International Paper Company),
6 1/2% due 4/1/2006 ................................................................... NR/NR 189,827
1,250,000 Saint Charles Parish, LA Environmental Improvement Rev. (Louisiana Power
and Light Company Project), 6.20% due 5/1/2023* ....................................... Baa2/BBB 1,232,937
2,960,000 Saint Charles Parish, LA Waterworks & Wastewater District Utility Rev.,
7.15% due 7/1/2016 .................................................................... Aaa/AAA 3,295,427
1,555,000 Shreveport, LA GOs, 7 1/2% due 4/1/2006 .................................................. Aaa/AAA 1,723,982
2,000,000 Shreveport, LA Water & Sewer Rev., 7 1/8% due 12/1/2014 .................................. Aaa/AAA 2,071,500
2,050,000 Sulphur, LA Housing & Mortgage Finance Trust (Residential Mortgage Rev.),
7 1/4% due 12/1/2010 .................................................................. Aaa/AAA 2,176,813
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
23
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LOUISIANA SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 3,000,000 Tangipahoa Parish, LA Hospital Service District No. 1 Rev. (Northoaks Medical Center),
6 1/4% due 2/1/2024.................................................................... Aaa/AAA $ 3,120,090
------------
Total Municipal Bonds (Cost $54,499,646) -- 97.9% ................................................................. 56,440,667
Variable Rate Demand Notes (Cost $200,000) -- 0.3% ................................................................ 200,000
Other Assets Less Liabilities -- 1.8% ............................................................................. 1,013,014
------------
NET ASSETS -- 100.0% .............................................................................................. $ 57,653,681
============
</TABLE>
<TABLE>
<CAPTION>
MARYLAND SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 3,000,000 Anne Arundel County, MD Pollution Control Rev. (Baltimore Gas and
Electric Company Project), 6% due 4/1/2024 .......................................... A2/A $ 3,038,550
2,000,000 Baltimore, MD Consolidated Public Improvement GOs, 6 3/8% due 10/15/2006 ............... Aaa/AAA 2,209,980
2,500,000 Baltimore, MD Port Facilities Rev. (Consolidated Coal Sales Co. Project),
6 1/2% due 10/1/2011 ................................................................ Aa3/AA- 2,717,525
2,000,000 Howard County, MD Metropolitan District Project GOs, 5 1/2% due 8/15/2022 .............. Aaa/AA+ 1,988,940
4,000,000 Maryland Capital Improvement GOs, 5.20% due 4/15/2006 .................................. Aaa/AAA 4,054,960
1,000,000 Maryland Community Development Administration Dept. of Economic & Community
Development (Single Family Program), 7 3/4% due 4/1/2009 ............................ Aa/NR 1,031,150
2,000,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Multi-Family Housing), 7.70% due 5/15/2020* ............................ Aa/NR 2,138,980
2,465,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Single Family Program), 6.80% due 4/1/2024* ............................ Aa/NR 2,538,654
2,500,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Multi-Family Housing), 6.70% due 5/15/2027 ............................. Aa/NR 2,607,150
2,710,000 Maryland Health & Higher Educational Facilities Authority Rev. (Good Samaritan
Hospital), 5 3/4% due 7/1/2019 ...................................................... A1/A 2,659,161
3,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins
University), 7 1/2% due 7/1/2020 .................................................... Aa/AA- 3,208,950
2,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Suburban Hospital),
5 1/8% due 7/1/2021 ................................................................. A1/A 1,811,440
2,750,000 Maryland Health & Higher Educational Facilities Authority Rev. (Ann Arundel Medical
Center), 5% due 7/1/2023 ............................................................ Aaa/AAA 2,469,775
3,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Francis Scott Key
Medical Center), 5% due 7/1/2023 .................................................... Aaa/AAA 2,694,300
1,000,000 Maryland National Capital Park & Planning Commission GOs (Prince George's County),
6.90% due 7/1/2010 .................................................................. Aa/AA 1,098,130
2,000,000 Maryland Transportation Authority Rev. (Baltimore/Washington International
Airport Project), 6 1/4% due 7/1/2014* .............................................. Aaa/AAA 2,094,940
3,000,000 Maryland Transportation Authority Rev. Transportation Facilities Projects, 5 3/4%
due 7/1/2015 ........................................................................ A1/A+ 3,002,610
1,000,000 Maryland Water Quality Financing Administration Revolving Loan Fund Rev.,
6.70% due 9/1/2013 ............................................................... Aaa/AAA 1,107,080
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
24
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
MARYLAND SERIES (continued)
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 1,000,000 Maryland Water Quality Financing Administration Revolving Loan Fund Rev.,
7.10% due 9/1/2013 .................................................................... Aaa/AAA $ 1,124,420
2,500,000 Montgomery County, MD Consolidated Public Improvement GOs,
4.90% due 10/1/2013 ................................................................... Aaa/AAA 2,326,275
455,000 Montgomery County, MD Housing Opportunities Commission (Single Family
Mortgage Rev.), 7 3/8% due 7/1/2017 ................................................... Aa/NR 479,993
2,000,000 Northeast Maryland Waste Disposal Authority Solid Waste Rev. (Montgomery County
Resource Recovery Project), 6.30% due 7/1/2016* ....................................... A/NR 2,019,840
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 .......... Baa1/A 946,120
55,000 Puerto Rico Housing Finance Corporation (Single Family Mortgage Rev. Portfolio 1),
7.80% due 10/15/2021 .................................................................. Aaa/AAA 56,764
650,000 Puerto Rico Housing Finance Corporation (Single Family Mortgage Rev. Portfolio 1-C),
6.85% due 10/15/2023 .................................................................. Aaa/AAA 677,508
1,500,000 University of Maryland Auxiliary Facilities and Tuition Rev., 6 1/2% due 4/1/2011 ........ NR/AAA 1,624,950
2,500,000 Washington Suburban Sanitary District, MD, 6 1/2% due 1/1/2016 ........................... Aa1/AA 2,684,450
------------
Total Municipal Bonds (Cost $52,283,695) -- 97.0% ................................................................. 54,412,595
Variable Rate Demand Notes (Cost $700,000) -- 1.3% ................................................................ 700,000
Other Assets Less Liabilities -- 1.7% ............................................................................. 975,684
------------
NET ASSETS -- 100.0% .............................................................................................. $ 56,088,279
============
</TABLE>
<TABLE>
<CAPTION>
MASSACHUSETTS SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 5,000,000 Boston, MA Water & Sewer Commission General Rev., 5 1/4% due 11/1/2019 ................... A/A $ 4,737,400
3,000,000 Boston, MA Water & Sewer Commission General Rev., 7.10% due 11/1/2019 .................... Aaa/AAA 3,284,580
5,000,000 Massachusetts Bay Transportation Authority Transportation System Rev.,
6.10% due 3/1/2023 .................................................................... A1/A+ 5,086,100
1,585,000 Massachusetts Education Loan Authority Education Loan Rev., 8% due 6/1/2002 .............. NR/AAA 1,628,286
3,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Daughters of Charity
National Health Systems-- Carney Hospital), 6% due 7/1/2009 ........................... Aa/AA 3,057,780
2,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Daughters of Charity
National Health Systems-- Carney Hospital), 6.10% due 7/1/2014 ........................ Aa/AA 2,530,850
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Newton-Wellesley
Hospital), 6% due 7/1/2018 ............................................................ Aaa/AAA 5,070,650
3,295,000 Massachusetts Health & Educational Facilities Authority Rev. (Tufts University),
7.40% due 8/1/2018 .................................................................... Aaa/A+ 3,545,288
705,000 Massachusetts Health & Educational Facilities Authority Rev. (Tufts University),
7.40% due 8/1/2018 .................................................................... A1/A+ 753,709
3,500,000 Massachusetts Health &Educational Facilities Authority Rev. (Williams College),
5 3/4% due 7/1/2019 ................................................................... Aa1/AA 3,505,565
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
25
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
MASSACHUSETTS SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 2,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University),
8 1/8% due 7/1/2020 ..................................................................... Baa/BBB $ 2,808,875
2,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Boston College),
6 5/8% due 7/1/2021 ..................................................................... Aaa/AAA 2,152,420
1,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University),
6.35% due 7/1/2022 ...................................................................... NR/AAA 1,043,350
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Brigham & Women's
Hospital), 6 3/4% due 7/1/2024 .......................................................... A1/A+ 5,241,800
7,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Harvard University),
5 5/8% due 11/1/2028 .................................................................... Aaa/AAA 7,384,575
1,600,000 Massachusetts Housing Finance Agency Rev. (Residential Development),
6 1/4% due 11/15/2012 ................................................................... Aaa/AAA 1,632,496
4,705,000 Massachusetts Housing Finance Agency Rev. (Single Family Housing),
7.30% due 6/1/2014 ...................................................................... Aa/A+ 4,811,709
3,195,000 Massachusetts Industrial Finance Agency Rev. (Phillips Academy), 5 3/8% due 9/1/2023 ....... Aa1/AA 3,040,138
3,000,000 Massachusetts Industrial Finance Agency Rev. (College of the Holy Cross),
5 5/8% due 3/1/2026 ..................................................................... Aaa/AAA 2,959,500
2,000,000 Massachusetts Industrial Finance Agency Electric Utility Rev. (Nantucket Electric
Company Project), 5 7/8% due 7/1/2017* .................................................. Aaa/AAA 1,998,600
755,000 Massachusetts Municipal Wholesale Electric Company Power Supply System Rev.,
6 3/4% due 7/1/2017 ..................................................................... Baa/BBB+ 789,602
2,450,000 Massachusetts Special Obligation Rev. (Highway Improvement Loan), 6% due 6/1/2013 .......... A1/AA 2,482,585
2,500,000 Massachusetts Special Obligation Rev. (Highway Improvement Loan),
5.80% due 6/1/2014 ...................................................................... A1/AA- 2,512,625
10,000,000 Massachusetts State Consolidated Loan GOs, 5 1/8% due 11/1/2013 ............................. Aaa/AAA 9,461,400
8,475,000 Massachusetts State Port Authority Rev., 7 1/8% due 7/1/2012 ................................ Aa/AA 8,560,089
5,500,000 Massachusetts State Water Resources Authority Rev., 6% due 8/1/2024 ........................ Aaa/AAA 5,568,750
5,000,000 Massachusetts Turnpike Authority Turnpike Rev., 5 1/8% due 1/1/2023 ......................... Aaa/AAA 4,578,750
730,000 Puerto Rico Electric Power Authority Power Rev., 7 1/8% due 7/1/2014 ........................ Baa1/BBB 786,940
1,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2019 ........... Baa1/A 947,770
4,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 ........... Baa1/A 3,784,480
2,750,000 Puerto Rico Port Authority Rev., 6% due 7/1/2021* .......................................... Aaa/AAA 2,758,690
------------
Total Municipal Bonds (Cost $105,809,930) -- 97.5% .................................................................. 108,505,352
Variable Rate Demand Notes (Cost $1,200,000) -- 1.1% ................................................................ 1,200,000
Other Assets Less Liabilities -- 1.4% ............................................................................... 1,571,221
------------
NET ASSETS -- 100.0% ................................................................................................ $111,276,573
============
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
26
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
MICHIGAN SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 5,000,000 Capital Region Airport Authority, MI Airport Rev., 6.70% due 7/1/2021* ................... Aaa/AAA $ 5,342,100
5,000,000 Clarkston Community Schools, MI GOs, 5 3/4% due 5/1/2016 ................................. Aaa/AAA 5,007,000
5,000,000 Detroit, MI Distributable State Aid GOs, 7.20% due 5/1/2009 .............................. Aaa/AAA 5,434,200
6,000,000 Detroit, MI Water Supply System Rev., 6 1/4% due 7/1/2012 ................................ Aaa/AAA 6,276,480
3,000,000 Grand Haven, MI Electric System Rev., 5 1/4% due 7/1/2013 ................................ Aaa/AAA 2,858,370
7,000,000 Grand Rapids, MI Water Supply System Rev., 5 3/4% due 1/1/2018 ........................... Aaa/AAA 6,973,750
1,000,000 Grand Traverse County, MI Hospital Finance Authority (Munson Healthcare
Obligated Group), 6 1/4% due 7/1/2012 ................................................. Aaa/AAA 1,046,720
1,500,000 Grand Traverse County, MI Hospital Finance Authority (Munson Healthcare
Obligated Group), 6 1/4% due 7/1/2022 ................................................. Aaa/AAA 1,558,575
3,000,000 Holland School District, MI GOs (School Building and Site Bonds), 7 3/8% due 5/1/2019 . NR/NR 3,172,560
3,000,000 Jackson County, MI Hospital Finance Authority Rev. (W.A. Foote Memorial Hospital),
7 1/4% due 6/1/2012 ................................................................... NR/NR 3,120,510
5,000,000 Kent County, MI Airport Rev., 6.10% due 1/1/2025* ........................................ Aa/AAA 5,094,800
5,000,000 Kent County, MI Refuse Disposal System GOs, 8.40% due 11/1/2010 .......................... Aa/AAA 5,316,600
2,775,000 Kentwood, MI Public Schools Building & Site GOs, 6.40% due 5/1/2015 ...................... Aa/A+ 2,903,538
3,000,000 Lansing, MIBuilding Authority Rev., 5.60% due 6/1/2019 ................................... A1/AA+ 2,962,590
3,250,000 Marquette, MIHospital Finance Authority Hospital Rev. (Marquette General Hospital),
6.10% due 4/1/2019 .................................................................... Aaa/AAA 3,311,880
3,000,000 Michigan Public Power Agency Rev. (Belle River Project), 5 1/4% due 1/1/2018 ............. A1/AA- 2,817,060
4,000,000 Michigan State Building Authority Rev., 6 1/4% due 10/1/2020 ............................. A1/AA- 4,113,960
1,750,000 Michigan State Comprehensive Transportation Rev., 7 5/8% due 5/1/2011 .................... A1/AA- 1,865,045
6,500,000 Michigan State GOs (Environmental Protection Program), 5.40% due 11/1/2019 ............... Aa/AA 6,250,985
4,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Crittenton Hospital),
5 1/4% due 3/1/2014 ................................................................... A1//A+ 3,723,280
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (St. John Hospital),
5 3/4% due 5/15/2016 .................................................................. Aaa/AAA 4,953,200
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Henry Ford Health System),
5 3/4% due 9/1/2017 ................................................................... Aaa/AAA 4,951,750
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Detroit Medical Center),
6 1/2% due 8/15/2018 .................................................................. A/A 5,190,550
1,250,000 Michigan State Hospital Finance Authority Hospital Rev. (Crittenton Hospital),
6 3/4% due 3/1/2020 ................................................................... Aaa/AAA 1,341,888
2,000,000 Michigan State Hospital Finance Authority Hospital Rev. (St. John Hospital),
5 1/4% due 5/15/2026 .................................................................. Aaa/AAA 1,863,740
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Sparrow Obligated Group),
6% due 11/15/2036 ..................................................................... Aaa/AAA 5,012,400
2,500,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.80% due 12/1/2016 ................................................................... NR/AA+ 2,607,600
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
27
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
MICHIGAN SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 5,000,000 Michigan State Housing Development Authority Rev. (Rental Housing),
6.65% due 4/1/2023 .................................................................... NR/A+ $ 5,165,700
4,000,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.05% due 12/1/2027 ................................................................... NR/AA+ 3,988,440
3,000,000 Michigan State Strategic Fund Pollution Control Rev. (Detroit Edison Company),
6 1/2% due 2/15/2016 .................................................................. Aaa/AAA 3,191,220
6,000,000 Michigan State Strategic Fund Pollution Control Rev. (General Motors Corp.),
6.20% due 9/1/2020 .................................................................... A3/A- 6,086,100
7,500,000 Michigan State Trunk Line Rev., 5.80% due 11/15/2024 ..................................... Aaa/AAA 7,499,400
2,000,000 Midland, MI Water Supply System Rev., 7.20% due 4/1/2010 ................................. A/A 2,171,400
5,000,000 University of Michigan Hospital Rev., 6 3/8% due 12/1/2024 ............................... Aa/AA 5,106,500
5,000,000 Wayne, MI State University Rev., 5.65% due 11/15/2015 .................................... Aaa/AAA 4,879,800
3,000,000 Wyandotte, MI Electric Rev., 6 1/4% due 10/1/2017 ........................................ Aaa/AAA 3,116,550
------------
Total Municipal Bonds (Cost $140,693,987) -- 97.7% ................................................................. 146,276,241
Variable Rate Demand Notes (Cost $900,000) -- 0.6% ................................................................. 900,000
Other Assets Less Liabilities -- 1.7% .............................................................................. 2,488,071
------------
NET ASSETS -- 100.0% ............................................................................................... $149,664,312
============
</TABLE>
MINNESOTA SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 6,250,000 Becker, MN Pollution Control Rev. (Northern States Power Company),
6.80% due 4/1/2007 .................................................................... A2/A+ $ 6,630,438
2,000,000 Breckenridge, MN Hospital Facility Rev. (Franciscan Sisters Health Care, Inc.),
9 3/8% due 9/1/2017 ................................................................... NR/NR 2,131,560
1,500,000 Buffalo, MNIndependent School District GOs, 6.15% due 2/1/2022 ........................... Aaa/AAA 1,533,735
3,000,000 Dakota County, MN GOs Capital Improvement, 7.30% due 2/1/2008 ............................ Aaa/NR 3,120,960
5,000,000 Edina, MN Housing Development Rev. (Edina Park Plaza Project), 7.70% due 12/1/2028 ....... Aa/NR 5,260,650
3,545,000 Fridley, MNIndependent School District GOs, 5.35% due 2/1/2021 ........................... Aa/AAA 3,386,964
2,000,000 Goodhue County, MN Hospital Facilities Rev. (St. John's Regional Health Center),
8 3/4% due 9/1/2016 ................................................................... NR/NR 2,124,780
1,200,000 Lakeville, MN Independent School District No. 194 GOs, 6.70% due 2/1/2015 ................ Aaa/AAA 1,258,368
7,500,000 Minneapolis, MN Community Development Agency Tax Increment Rev., Zero Coupon
Bond due 9/1/2003 ..................................................................... Aaa/AAA 5,329,125
5,500,000 Minneapolis, MN Community Development Agency Tax Increment Rev., Zero Coupon
Bond due 9/1/2004 ..................................................................... Aaa/AAA 3,693,910
1,400,000 Minneapolis-St. Paul Metropolitan Area (Metropolitan Council of the Twin Cities), MN,
5 1/2% due 12/1/2012 .................................................................. Aaa/AAA 1,393,952
5,000,000 Minneapolis-St. Paul, MN Housing & Redevelopment Authority Health Care Rev
(Children's Health Care), 5 1/2% due 8/15/2025 ........................................ Aaa/AAA 4,790,650
</TABLE>
- ----------
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
28
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
MINNESOTA SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 1,500,000 Minneapolis, MNGOs, 6% due 3/1/2016 ...................................................... Aaa/AAA $ 1,530,555
2,000,000 Minneapolis, MN Hospital Facilities Rev. (Lifespan, Inc.-- Abbott-Northwestern
Hospital, Inc.), 7 7/8% due 12/1/2014 ................................................. Aaa/AAA 2,127,460
1,500,000 Minneapolis, MN Tax Increment Rev., 7% due 3/1/2003 ...................................... Aaa/AAA 1,551,135
940,000 Minnesota Housing Finance Agency (Housing Development), 6 1/4% due 2/1/2020 .............. Aa/AA 950,143
5,000,000 Minnesota Housing Finance Agency (Single Family Mortgage), 6.85% due 1/1/2024* ........... Aa/AA+ 5,181,450
5,500,000 Minnesota Public Facilities Authority Water Pollution Control Rev., 7.10% due 3/1/2012 ... Aaa/AAA 6,042,740
5,000,000 Minnesota State GOs, 5.70% due 5/1/2016 .................................................. Aaa/AA+ 5,058,600
5,000,000 North Saint Paul/Maplewood, MN Independent School District GOs, 5 1/8% due 2/1/2025 ...... Aa1/AA 4,578,200
5,000,000 Northern Municipal Power Agency, MN Electric System Rev., 7 1/4% due 1/1/2016 ............ A/A 5,332,450
2,500,000 Northern Municipal Power Agency, MN Electric System Rev., 7.40% due 1/1/2018 ............. Aaa/AAA 2,713,625
2,500,000 Northfield, MN Independent School District GOs, 5 1/4% due 2/1/2017 ...................... Aa1/NR 2,374,025
4,000,000 Plymouth, MN Health Facilities Rev. (Westhealth Project), 6 1/8% due 6/1/2024 ............ Aaa/AAA 4,118,680
2,000,000 Ramsey & Washington Counties, MN Resource Recovery Rev. (Northern States Power
Company Project), 6 3/4% due 12/1/2006 ................................................ A1/AA- 2,099,840
4,000,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
7.45% due 11/15/2006 .................................................................. NR/AA+ 4,418,840
4,500,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
6 1/4% due 11/15/2014 ................................................................. NR/AA+ 4,715,415
1,000,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
6 1/4% due 11/15/2021 ................................................................. NR/AA+ 1,037,260
2,575,000 Rochester, MN Independent School District GOs, 5 5/8% due 2/1/2016 ....................... Aaa/AA 2,587,772
2,715,000 Rochester, MN Independent School District GOs, 5 5/8% due 2/1/2017 ....................... Aaa/AA 2,728,466
1,000,000 Saint Cloud, MNHospital Facilities Rev. (Saint Cloud Hospital), 5% due 7/1/2020 .......... Aaa/AAA 907,010
2,000,000 Saint Cloud, MN Hydroelectric Generation Facility Gross Rev., 7 3/8% due 12/16/2018 ...... NR/A- 2,049,900
264,312 Saint Paul, MN Science Museum Facilities Rev. (Science Museum of Minnesota Project),
7 1/2% due 12/15/2001 ................................................................. NR/AAA 279,697
45,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9 1/8% due 10/1/2000 .................................................................. NR/CCC 43,146
5,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9 1/8% due 12/1/2000 .................................................................. NR/CCC 4,786
55,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9 1/8% due 12/1/2000 .................................................................. NR/CCC 52,642
50,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9 1/8% due 10/1/2001 .................................................................. NR/CCC 47,080
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9 1/8% due 12/1/2001 .................................................................. NR/CCC 9,399
55,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9 1/8% due 12/1/2001 .................................................................. NR/CCC 51,693
5,000 Saint Paul Port Authority, MN Industrial Development Rev. Series L,
9 3/4% due 12/1/2001 .................................................................. NR/CCC 4,821
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
29
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
MINNESOTA SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 50,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series E,
9 1/8% due 10/1/2002 .................................................................... NR/CCC $ 46,660
10,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series H,
9 1/8% due 12/1/2002 .................................................................... NR/CCC 9,316
60,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series I,
9 1/8% due 12/1/2002 .................................................................... NR/CCC 55,894
10,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series L,
9 3/4% due 12/1/2002 .................................................................... NR/CCC 9,593
1,500,000 Southern Minnesota Municipal Power Agency-- Power Supply System Rev.,
5 3/4% due 1/1/2018 ..................................................................... A/A+ 1,481,730
750,000 Southern Minnesota Municipal Power Agency-- Power Supply System Rev.,
5 3/4% due 1/1/2018 ..................................................................... Aaa/AAA 754,507
1,500,000 Southern Minnesota Municipal Power Agency-- Power Supply System Rev.,
4 3/4% due 1/1/2016 ..................................................................... A/A+ 1,315,485
3,500,000 Washington County, MN GOs, 5.90% due 2/1/2010 .............................................. Aa/AA- 3,564,015
3,000,000 Western Minnesota Municipal Power Agency-- Power Supply Rev., 7% due 1/1/2013 .............. A1/A 3,083,520
3,090,000 Western Minnesota Municipal Power Agency-- Power Supply Rev., 5 1/2% due 1/1/2015 .......... A1/A 3,006,477
9,580,000 Western Minnesota Municipal Power Agency-- Power Supply Rev., 6 3/8% due 1/1/2016 .......... Aaa/AAA 10,267,173
Total Municipal Bonds (Cost $120,753,949) -- 98.9% .................................................................. 126,846,292
Other Assets Less Liabilities -- 1.1% ............................................................................... 1,362,726
------------
NET ASSETS -- 100.0% ................................................................................................ $128,209,018
============
</TABLE>
MISSOURI SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <C> <C> <C>
$ 2,000,000 Columbia, MO Water and Electric System Improvement Rev., 6 1/8% due 10/1/2012 ..... A1/AA $ 2,047,560
1,500,000 Hannibal, MO Industrial Development Authority Health Facilities Rev
(Hannibal Regional Hospital), 5 3/4% due 3/1/2022 .............................. Aaa/AAA 1,490,010
3,775,000 Kansas City, MO Water Rev., 6 1/4% due 12/1/2009 .................................. Aa/NR 3,910,145
1,500,000 Kansas City School District Building Corporation, MO Leasehold Rev.,
7.90% due 2/1/2008 ............................................................. Aaa/AAA 1,602,705
1,000,000 Liberty, MO Waterworks Improvement Rev., 6.30% due 10/1/2012 ...................... Aaa/AAA 1,041,470
2,000,000 Little Blue Valley, MO Sewer District Rev., 7 1/4% due 10/1/2007 .................. Aaa/AAA 2,104,600
1,000,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7 3/8% due 3/1/2006 ............................................................ Aaa/AAA 1,048,290
2,000,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7% due 3/1/2006 ................................................................ Aaa/AAA 2,089,700
1,000,000 Missouri State Environmental Improvement & Energy Resources Authority Rev
(State Revolving Fund Program), 6.55% due 7/1/2014 ............................. Aa/NR 1,052,560
2,500,000 Missouri State Environmental Improvement & Energy Resources Authority Rev
(Union Electric Company Project), 5.45% due 10/1/2028* ......................... A1/AA- 2,332,200
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
30
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
MISSOURI SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 2,500,000 Missouri State Environmental Improvement & Energy Resources Authority -- Water
Pollution Control Rev. (State Revolving Fund Program), 5.40% due 7/1/2015 ......... Aa/NR $ 2,430,875
2,000,000 Missouri State GOs, 5 5/8% due 4/1/2017 .............................................. Aaa/AAA 2,020,540
2,500,000 Missouri State Health & Educational Facilities Authority Rev. (Lester E. Cox Medical
Centers Project), 5 1/4% due 6/1/2015 ............................................. Aaa/AAA 2,399,275
1,500,000 Missouri State Health & Educational Facilities Authority Rev. (Sisters of Mercy Health
System, St. Louis, Inc.), 6 1/4% due 6/1/2015 ..................................... Aa/AA 1,518,960
3,500,000 Missouri State Health & Educational Facilities Authority Rev. (SSM Health Care),
6 1/4% due 6/1/2016 ............................................................... Aaa/AAA 3,642,170
1,000,000 Missouri State Health & Educational Facilities Authority Rev. (Sisters of Mercy Health
System, St. Louis, Inc.), 7 1/4% due 6/1/2019 ..................................... Aaa/AA 1,089,030
1,000,000 Missouri State Health & Educational Facilities Authority Rev. (Sisters of Mercy Health
System, St. Louis, Inc.), 5% due 6/1/2019 ......................................... Aa/AA 896,250
2,500,000 Missouri State Health Facilities Rev. (Barnes-Jewish, Inc./Christian Health Services),
5 1/4% due 5/15/2021 .............................................................. Aa/AA 2,314,600
860,000 Missouri State Housing Development Commission Housing Development Bonds
(Federally Insured Mortgage Loans), 6% due 10/15/2019 ............................. Aa/AA+ 865,547
1,500,000 St. Louis, MO Industrial Development Authority Pollution Control Rev. (Anheuser-Busch
Companies, Inc. Project), 6.65% due 5/1/2016 ...................................... A1/AA- 1,696,800
1,500,000 St. Louis, MO Municipal Finance Corporation City Justice Center Leasehold
Improvement Rev., 5.95% due 2/15/2016 ............................................. Aaa/AAA 1,527,180
2,400,000 Southeast Missouri Correctional Facility Lease Rev. (Missouri State Project),
5 3/4% due 10/15/2016 ............................................................. Aa/AA 2,369,040
2,000,000 Springfield, MO Public Utility Rev., 5 1/4% due 3/1/2007 ............................. Aa/AA 2,005,800
2,500,000 Springfield, MO Waterworks Rev., 5.60% due 5/1/2023 .................................. Aa/A+ 2,465,850
2,750,000 University of Missouri University Revenues Refunding & Improvement Systems Facilities,
5 1/2% due 11/1/2023 .............................................................. Aa/AA+ 2,648,718
-----------
Total Municipal Bonds (Cost $46,989,665) -- 96.2% ............................................................ 48,609,875
Variable Rate Demand Notes (Cost $1,100,000) -- 2.2% ......................................................... 1,100,000
Other Assets Less Liabilities -- 1.6% ........................................................................ 796,556
-----------
NET ASSETS -- 100.0% ......................................................................................... $50,506,431
===========
</TABLE>
NEW YORK SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 5,000,000 Metropolitan Transportation Authority, NY (Commuter Facilities Rev.),
6 1/2% due 7/1/2024 ................................................................... Baa1/BBB+ $ 5,200,700
2,900,000 Metropolitan Transportation Authority, NY (Transit Facilities Rev.),
6.10% due 7/1/2026 .................................................................... Aaa/AAA 2,973,080
2,500,000 Municipal Assistance Corporation for the City of New York, NY, 6.90% due 7/1/2007 ........ Aa/AA- 2,594,125
4,000,000 New York City Municipal Water Finance Authority, NY Water & Sewer System Rev.,
6 1/4% due 6/15/2020 .................................................................. A/A- 4,119,160
2,435,000 New York City, NY GOs, 7 1/4% due 8/15/2024 .............................................. Baa1/BBB+ 2,572,285
65,000 New York City, NY GOs, 7 1/4% due 8/15/2024 .............................................. Baa1/BBB+ 71,934
</TABLE>
- ----------
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
31
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
NEW YORK SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 3,500,000 New York State Dormitory Authority Rev. (Rockefeller University), 7 3/8% due 7/1/2014 ..... Aaa/AAA $ 3,745,105
5,000,000 New York State Dormitory Authority Rev. (Fordham University), 5 3/4% due 7/1/2015 ......... Aaa/AAA 4,982,450
5,000,000 New York State Dormitory Authority Rev. (Skidmore College), 5 3/8% due 7/1/2023 ........... Aaa/AAA 4,745,000
4,500,000 New York State Energy Research & Development Authority Electric Facilities Rev
(Consolidated Edison Co. NY), 6.10% due 8/15/2020 ...................................... Aaa/AAA 4,610,025
1,500,000 New York State Energy Research & Development Authority Gas Facilities Rev
(Brooklyn Union Gas Co. Project), 5 1/2% due 1/1/2021 .................................. Aaa/AAA 1,456,860
2,500,000 New York State Energy Research &Development Authority Gas Facilities Rev
(Brooklyn Union Gas), 6 3/4% due 2/1/2024* ............................................. Aaa/AAA 2,691,875
3,000,000 New York State Environmental Facilities Corporation Pollution Control Rev
(State Water-- Revolving Fund), 6.90% due 11/15/2015 ................................... Aaa/AAA 3,394,530
3,000,000 New York State Housing Finance Agency Rev. (Phillips Village Project),
7 3/4% due 8/15/2017* .................................................................. A/NR 3,321,330
3,000,000 New York State Local Government Assistance Corp., 6% due 4/1/2024 ......................... A/A 3,016,230
4,000,000 New York State Medical Care Facilities Finance Agency Rev. (The Hospital for Special
Surgery), 6 3/8% due 8/15/2024 ......................................................... Aa/AA 4,125,240
2,000,000 New York State Mortgage Agency (Homeownership Mortgage), 7 1/2% due 4/1/2016 .............. Aa/NR 2,109,200
4,000,000 New York State Power Authority General Purpose Rev., 6 1/2% due 1/1/2019 .................. Aaa/AAA 4,281,760
4,000,000 New York State Thruway Authority Rev., 6 1/4% due 4/1/2014 ................................ Baa1/BBB 4,036,760
4,000,000 New York State Thruway Authority General Rev., 6% due 1/1/2025 ............................ Aaa/AAA 4,060,760
2,500,000 Niagara Falls, NY Bridge Commission Toll Bridge System Rev., 5 1/4% due 10/1/2015 ......... Aaa/AAA 2,404,100
4,000,000 Onondaga County, NY Industrial Development Agency Sewer Facilities Rev
(Bristol Myers-Squibb Co. Project), 5 3/4% due 3/1/2024 ................................ Aaa/AAA 4,031,240
2,250,000 Port Authority of New York and New Jersey Consolidated Rev., 6 1/8% due 6/1/2094 .......... A1/AA- 2,346,750
5,000,000 United Nations Development Corporation, NY (A Public Benefit Corporation of the State
of New York Senior Lien), 6% due 7/1/2026 .............................................. A/NR 4,965,150
----------
Total Municipal Bonds (Cost $79,357,217) -- 97.6% ................................................................ 81,855,649
Variable Rate Demand Notes (Cost $900,000) -- 1.1% ............................................................... 900,000
Other Assets Less Liabilities -- 1.3% ............................................................................ 1,115,909
----------
NET ASSETS -- 100.0% ............................................................................................. $ 83,871,558
============
</TABLE>
OHIO SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 2,000,000 Barberton, OH Sewer System Mortgage Rev., 6 5/8% due 12/1/2006 ........................... Aaa/AAA $ 2,105,480
2,250,000 Beavercreek Local School District, OH GOs (School Improvement Bonds),
5.70% due 12/1/2020 ................................................................... Aaa/AAA 2,238,120
3,450,000 Big Walnut Local School District, OH School Building Construction & Improvement
GOs, 7.20% due 6/1/2007 ............................................................... Aaa/AAA 3,863,069
3,000,000 Clermont County, OH Hospital Facilities Rev. (Mercy Health System), 5 7/8% due 1/1/2015 .. Aaa/AAA 3,006,480
2,000,000 Cleveland, OH Waterworks Improvement Rev., 6% due 1/1/2017 ............................... A1/A+ 1,986,120
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
32
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
OHIO SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 5,000,000 Columbus, OH GOs, 6 1/2% due 1/1/2010 .................................................. Aaa/AAA $ 5,373,700
4,500,000 Columbus, OH Municipal Airport Authority Rev. (Port Columbus International
Airport Project), 6% due 1/1/2020* .................................................. Aaa/AAA 4,518,495
3,000,000 Dayton, OH Water System Mortgage Rev., 6 3/4% due 12/1/2010 ............................ Aaa/AAA 3,146,880
7,000,000 Erie County, OH Franciscan Services Corp. Rev. (Providence Hospital Inc.),
6% due 1/1/2013 ..................................................................... NR/A- 6,787,480
7,750,000 Franklin County, OH GOs, 5 3/8% due 12/1/2020 .......................................... Aaa/AAA 7,509,982
7,500,000 Franklin County, OH Hospital Rev. (Riverside United Methodist Hospital),
5 3/4% due 5/15/2020 ................................................................ Aa/NR 7,385,175
5,000,000 Hamilton County, OH Health Care System Rev. (Sisters of Charity Health Care),
6 1/4% due 5/15/2014 ................................................................ Aaa/AAA 5,226,200
2,500,000 Hamilton County, OH Sewer System Rev., 5 1/2% due 12/1/2017 ............................ Aaa/AAA 2,465,950
8,000,000 Hamilton, OH Electric System Mortgage Rev., 6% due 10/15/2023 .......................... Aaa/AAA 8,147,680
4,000,000 Hudson Local School District, OH GOs, 7.10% due 12/15/2013 ............................. A1/NR 4,447,600
1,095,000 Lake County, OH Hospital Improvement Rev. (Lake Hospital System Inc.),
8% due 1/1/2013 ..................................................................... Aaa/AAA 1,127,138
8,000,000 Lucas County, OH Hospital Improvement Rev. (The Toledo Hospital),
5% due 11/15/2010 ................................................................... Aaa/AAA 7,557,600
1,000,000 Montgomery County, OH Rev. (Sisters of Charity Health Care Systems, Inc.),
6 5/8% due 5/15/2021 ................................................................ Aaa/AAA 1,066,790
5,000,000 Mount Vernon, OH Hospital Rev. (Knox Community Hospital), 7 7/8% due 6/1/2012 .......... NR/NR 5,154,500
2,500,000 Northeast, OH Regional Sewer District Wastewater Rev., 5.60% due 11/15/2013 ............ Aaa/AAA 2,503,925
5,000,000 Ohio Air Quality Development Authority Pollution Control Rev. (Ohio Edison
Company Project), 7.45% due 3/1/2016 ................................................ Aaa/AAA 5,513,050
2,000,000 Ohio Air Quality Development Authority Rev. (Cincinnati Gas & Electric
Company Project), 5.45% due 1/1/2024 ................................................ Aaa/AAA 1,915,060
6,500,000 Ohio Air Quality Development Authority Rev. (JMG Project), 6 3/8% due 1/1/2029* ........ Aaa/AAA 6,846,190
2,000,000 Ohio State Building Authority Workers' Compensation Facilities
(William Green Building), 4 3/4% due 4/1/2014 ....................................... A/AA- 1,775,060
3,000,000 Ohio State GOs Infrastructure Improvement, 6 1/2% due 8/1/2011 ......................... Aa1/AA+ 3,221,250
1,500,000 Ohio State Higher Educational Facilities Commission Mortgage Rev
(University of Dayton Project), 7 1/4% due 12/1/2012 ................................ Aaa/AAA 1,675,155
3,000,000 Ohio State Higher Educational Facilities Commission Rev. (Oberlin College Project),
5 3/8% due 10/1/2015 ................................................................ NR/AA 2,949,180
2,000,000 Ohio State Liquor Profits Rev., 6.85% due 3/1/2000 ..................................... Aaa/AAA 2,145,240
7,000,000 Ohio State Public Facilities Commission Rev. (Higher Education Capital Facilities),
6.30% due 5/1/2006 .................................................................. Aaa/AAA 7,447,440
2,000,000 Ohio State Water Development Authority Rev. (Safe Water), 6 3/4% due 12/1/2007 ......... Aaa/AAA 2,098,240
2,570,000 Ohio State Water Development Authority Rev. (Safe Water), 9 3/8% due 12/1/2010 ......... Aaa/AAA 3,180,735
2,500,000 Ohio State Water Development Authority Solid Waste Disposal Rev. (North Star BHP
Steel, L.L.C. Project-- Cargill, Incorporated, Guarantor), 6.30% due 9/1/2020* ...... Aa3/AA- 2,587,650
8,000,000 Ohio State Water Development Authority Water Development Rev. (Dayton Power &
Light Co. Project), 6.40% due 8/15/2027 ............................................. Aa3/AA- 8,354,320
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
33
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
OHIO SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 8,000,000 Ohio Turnpike Commission, OH Turnpike Rev., 5.70% due 2/15/2017 .......................... Aaa/AAA $ 8,019,360
2,955,000 Pickerington Local School District, OH School Building Construction GOs,
8% due 12/1/2005 ...................................................................... Aaa/AAA 3,389,710
4,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2%, due 7/1/2036 ......... Baa1/A 3,784,480
775,000 Toledo, OH Sewer System Rev., 7 3/4% due 11/15/2017 ...................................... Aaa/AAA 845,176
560,000 Toledo, OH Waterworks Rev., 7 3/4% due 11/15/2017 ........................................ Aaa/AAA 610,708
2,500,000 Twinsburg City School District, OH School Improvement GOs,
5.90% due 12/1/2021 ................................................................... Aaa/AAA 2,532,275
3,000,000 University of Toledo, OH General Receipts Bonds, 7.10% due 6/1/2010 ...................... Aaa/AAA 3,303,240
2,000,000 Worthington City School District, OH School Building Construction & Improvement
GOs, 8 3/4% due 12/1/2002 ............................................................. Aaa/AAA 2,289,400
------------
Total Municipal Bonds (Cost $152,982,046) -- 98.1% .................................................................. 160,101,283
Variable Rate Demand Notes (Cost $600,000) -- 0.4% .................................................................. 600,000
Other Assets Less Liabilities -- 1.5% ............................................................................... 2,552,234
------------
NET ASSETS -- 100.0% ................................................................................................ $163,253,517
============
</TABLE>
OREGON SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 1,000,000 Albany, OR GOs Water Bonds, 6 5/8% due 11/1/2009 ......................................... Aaa/AAA $ 1,002,340
2,000,000 Chemeketa, OR Community College District GOs, 5.95% due 6/1/2016 ......................... Aaa/AAA 2,035,100
1,000,000 Clackamas County, OR Hospital Facility Authority Rev. (Kaiser Permanente),
6 1/4% due 4/1/2021 ................................................................... Aa3/AA 1,009,550
1,500,000 Clackamas & Washington Counties, OR School District No. 3JT GOs
(West Linn-Wilsonville), 5 7/8% due 8/1/2009 .......................................... A1/AA- 1,532,130
1,000,000 Deschutes County Hospital Facility Authority, OR (St. Charles Medical Center),
7.60% due 1/1/2013 .................................................................... A1/NR 1,039,110
400,000 Emerald People's Utility District, OR Electric System Rev., 7.20% due 11/1/2006 .......... Aaa/AAA 401,120
2,000,000 Eugene, OR Electric Utility Rev., 5.80% due 8/1/2022 ..................................... Aaa/AAA 1,997,160
1,500,000 Eugene, OR Trojan Nuclear Project Rev., 5.90% due 9/1/2009 ............................... Aa1/AA- 1,500,240
730,000 Eugene, OR Water Utility System Rev., 6.55% due 8/1/2003 ................................. A1/AA- 746,257
1,000,000 Metropolitan Service District, OR GOs (Oregon Convention Center),
6 1/4% due 1/1/2013 ................................................................... Aa/AA+ 1,051,260
1,250,000 Multnomah County School District, OR GOs, 6.80% due 12/15/2004 ........................... Aa/A+ 1,274,362
1,750,000 Multnomah County School District, OR GOs, 5 1/2% due 6/1/2015 ............................ A1/A+ 1,743,788
2,000,000 North Clackamas Parks & Recreation District-Clackamas County, OR Rev
(Recreational Facilities), 5.70% due 4/1/2013 ......................................... NR/A- 1,985,220
2,000,000 North Wasco County People's Utility District-Wasco County, OR Rev
(Bonneville Power Administration), 5.20% due 12/1/2024 ................................ Aa1/AA- 1,821,400
2,500,000 Ontario, OR Hospital Facility Authority Health Facilities Rev. Catholic Health Corporation
(Dominican Sisters of Ontario Inc., dba Holy Rosary Hospital Project), 7% due 6/1/2012. NR/NR 2,576,075
</TABLE>
- ----------
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
34
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
OREGON SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 750,000 Ontario, OR Hospital Facility Authority Health Facilities Rev. Catholic Health
Corporation (Dominican Sisters of Ontario Inc., dba Holy Rosary Medical
Center Project), 6.10% due 11/15/2017 ................................................. A1/AA- $ 735,120
1,000,000 Oregon Department of Transportation Regional Light Rail Extension Rev.,
6.20% due 6/1/2008 .................................................................... Aaa/AAA 1,068,880
2,850,000 Oregon Health, Housing, Educational &Cultural Facilities Authority Rev.
(Reed College Project), 5 3/8% due 7/1/2025 ........................................... NR/A+ 2,677,461
1,250,000 Oregon Health Sciences University Rev., 5 1/4% due 7/1/2028 .............................. Aaa/AAA 1,174,725
40,000 Oregon Housing Agency Mortgage Rev. (Single Family Mortgage Program),
7 3/8% due 7/1/2020* .................................................................. Aa1/NR 40,943
2,000,000 Oregon Housing & Community Services Department Housing & Finance Rev.
(Assisted or Insured Multi-Unit Program), 5 3/4% due 7/1/2012 ......................... A1/A+ 1,979,380
945,000 Oregon Housing & Community Services Department Mortgage Rev. (Single Family
Mortgage Program), 5.65% due 7/1/2019* ................................................ Aa/NR 900,765
905,000 Oregon Housing & Community Services Department Mortgage Rev. (Single Family
Mortgage Program), 7% due 7/1/2022* ................................................... Aa/NR 938,784
1,785,000 Oregon State Fair & Exposition Center Rev., 7 3/8% due 10/1/2006 ......................... NR/NR 1,785,178
500,000 Oregon State GOs (Veterans' Welfare), 9% due 10/1/2006 ................................... Aa/AA 654,995
1,500,000 Oregon State GOs (Veterans' Welfare), 5 7/8% due 10/1/2018 ............................... Aa/AA 1,513,905
500,000 Oregon State GOs (Alternate Energy Project), 8.40% due 1/1/2008 .......................... Aa/AA 551,785
250,000 Oregon State GOs (Elderly & Disabled Housing), 7.20% due 8/1/2021 ........................ Aa/AA 258,030
1,000,000 Oregon State GOs (Elderly & Disabled Housing), 6.60% due 8/1/2022* ....................... Aa/AA 1,034,380
500,000 Port of Portland, OR International Airport Rev., 6 1/4% due 7/1/2018* .................... Aaa/AAA 512,930
1,000,000 Port of Portland, OR International Airport Rev., 7.10% due 7/1/2021* ..................... Aaa/AAA 1,095,220
500,000 Port of Portland, OR International Airport Rev., 5 3/4% due 7/1/2025* .................... Aaa/AAA 490,980
1,500,000 Port of Portland, OR International Airport Rev., 5 5/8% due 7/1/2026* .................... Aaa/AAA 1,441,710
2,000,000 Portland, OR GOs, 5.60% due 6/1/2014 ..................................................... Aa/NR 2,009,900
1,250,000 Portland, OR Hospital Facilities Authority Rev. (Legacy Health System),
6 5/8% due 5/1/2011 ................................................................... Aaa/AAA 1,341,000
3,000,000 Portland, OR Sewer System Rev., 6% due 10/1/2012 ......................................... Aaa/AAA 3,096,060
1,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2019 ......... Baa1/A 947,770
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 .......... Baa1/A 946,120
655,000 Puerto Rico Housing Finance Corp. (Single Family Mortgage Rev.),
6.85% due 10/15/2023 .................................................................. Aaa/AAA 682,720
1,000,000 Puerto Rico Ports Authority Rev., 7% due 7/1/2014* ....................................... Aaa/AAA 1,098,500
1,000,000 Puerto Rico Telephone Authority Rev., 5 1/2% due 1/1/2013 ................................ A/A+ 990,380
2,600,000 Salem, OR Pedestrian Safety Improvements GOs, 5 3/4% due 5/1/2011 ....................... Aaa/AAA 2,647,788
1,000,000 Tri-County Metropolitan Transportation District of Oregon GOs (Light Rail Extension),
6% due 7/1/2012 ....................................................................... Aa/AA+ 1,021,570
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
35
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
OREGON SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 1,110,000 Tualatin Development Commission, OR (Urban Renewal & Redevelopment),
7 3/8% due 1/1/2007 ................................................................ Baa1/NR $ 1,126,006
2,000,000 Unified Sewerage Agency Washington County, OR Sewer Rev., 6 1/8% due 10/1/2012 ......... Aaa/AAA 2,080,040
------------
Total Municipal Bonds (Cost $57,048,547) -- 99.4% ................................................................ 58,558,137
Variable Rate Demand Notes (Cost $700,000) -- 1.2% ............................................................... 700,000
Other Assets Less Liabilities -- (0.6)% .......................................................................... (372,870)
------------
NET ASSETS -- 100.0% ............................................................................................. $ 58,885,267
============
</TABLE>
SOUTH CAROLINA SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 1,125,000 Anderson County, SC GOs, 7 3/4% due 4/1/2009 .............................................. A/A $ 1,179,911
2,500,000 Anderson County, SC Hospital Rev. (Anderson Memorial Hospital), 5 1/4% due 2/1/2012 ....... Aaa/AAA 2,383,325
1,500,000 Beaufort-Jasper Water & Sewer Authority, SC Waterworks & Sewer System Rev.,
6 1/2% due 3/1/2013 .................................................................... Aaa/AAA 1,613,700
3,800,000 Berkeley County, SC Water & Sewer Rev., 5.55% due 6/1/2016 ................................ Aaa/AAA 3,741,594
3,000,000 Charleston County, SC Hospital Facilities Rev. (Bon Secours Health System Project),
5 5/8% due 8/15/2025 ................................................................... Aaa/AAA 2,894,070
745,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 2/1/2004 ..................................................................... A1/A 800,339
770,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 8/1/2004 ..................................................................... A1/A 827,196
800,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.20% due 2/1/2005 ..................................................................... A1/A 862,088
750,000 Charleston, SC Waterworks & Sewer System Rev., 7 3/4% due 1/1/2011 ........................ Aaa/AAA 798,645
2,500,000 Charleston, SC Waterworks & Sewer System Rev., 6% due 1/1/2012 ............................ A1/AA- 2,540,825
1,500,000 Clemson University, SC Student & Faculty Housing Rev., 6.65% due 6/1/2011 ................. Aaa/AAA 1,608,900
1,000,000 Clinton, SC Utility System Rev., 7.20% due 6/1/2011 ....................................... A/NR 1,076,930
6,000,000 Darlington County, SC Industrial Development Rev. (Nucor Corporation Project),
5 3/4% due 8/1/2023* ................................................................... A1/AA- 5,884,500
2,000,000 Darlington County, SC Industrial Development Rev. (Sonoco Products Company Project),
6% due 4/1/2026 ........................................................................ A2/A 2,000,320
2,500,000 Fairfield County, SC Pollution Control Rev. (South Carolina Electric & Gas Company),
6 1/2% due 9/1/2014 .................................................................... A1/A 2,657,750
1,000,000 Georgetown County, SC Pollution Control Facilities Rev. (International Paper Company),
7 3/8% due 6/15/2005 ................................................................... A3/A- 1,065,800
3,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5 1/2% due 5/1/2016 .............. Aa/AA- 2,905,530
2,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5 1/4% due 5/1/2023 .............. Aa/AA- 1,834,020
3,000,000 Greenwood County, SC Hospital Facilities Rev. (Self Memorial Hospital),
5 7/8% due 10/1/2017 ................................................................... Aaa/AAA 2,994,600
2,425,000 Lancaster County, SC School District GOs, 6.60% due 7/1/2011 .............................. Aaa/AAA 2,639,176
2,600,000 Lancaster County, SC School District GOs, 6.60% due 7/1/2012 .............................. Aaa/AAA 2,822,846
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
36
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SOUTH CAROLINA SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <C> <C>
$ 2,000,000 Lancaster County, SC Waterworks & Sewer System Rev., 5 1/4% due 5/1/2021 ................ Aaa/AAA $1,876,640
2,720,000 Laurens County, SC Combined Utility System Rev., 5% due 1/1/2018 ........................ Aaa/AAA 2,471,310
1,650,000 Laurens County, SC Combined Utility System Rev., 7 5/8% due 1/1/2018 .................... Aaa/AAA 1,770,235
500,000 Laurens County, SC Health Care System, 7.80% due 1/1/2008 ............................... Aaa/AAA 532,160
1,000,000 Lexington County School District No. 001, SC Certificates of Participation (Red Bank/
White Knoll Elementary Project), 7.10% due 9/1/2011 .................................. Aaa/AAA 1,112,710
1,000,000 Medical University South Carolina Hospital Facilities Rev., 5.60% due 7/1/2011 .......... Aaa/AAA 1,012,950
4,800,000 Mount Pleasant, SC Water & Sewer Rev., 6% due 12/1/2020 ................................. Aaa/AAA 4,851,984
2,000,000 Myrtle Beach, SC Waterworks & Sewer System Rev., 5 1/4% due 3/1/2020 .................... Aaa/AAA 1,872,100
1,500,000 North Charleston Sewer District, SC Rev., 6 3/8% due 7/1/2012 ........................... Aaa/AAA 1,643,625
1,500,000 North Charleston Sewer District, SC Rev., 7 3/4% due 8/1/2018 ........................... Aaa/AAA 1,622,580
5,000,000 Oconee County, SC Pollution Control Facilities Rev. (Duke Power Co. Project),
5.80% due 4/1/2014 ................................................................... Aa2/AA- 5,066,900
1,250,000 Piedmont Municipal Power Agency, SC Electric Rev., 6 1/4% due 1/1/2021 .................. Aaa/AAA 1,351,713
4,000,000 Piedmont Municipal Power Agency, SC Electric Rev., 6.30% due 1/1/2022 ................... Aaa/AAA 4,169,200
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2%, due 7/1/2036 ........ Baa1/A 946,120
1,000,000 Puerto Rico Telephone Authority Rev., 5 1/2% due 1/1/2022 ............................... A/A+ 962,950
2,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp Corp. Project),
7.45% due 4/1/2021* .................................................................. A1/A- 2,194,680
1,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp Corp. Project),
7 1/8% due 9/1/2021* ................................................................. A1/A- 1,071,700
1,000,000 Rock Hill, SC Combined Utilities System Rev., 8% due 1/1/2018 ........................... Aaa/AAA 1,067,890
5,000,000 Rock Hill, SC Combined Utilities System Rev., 5% due 1/1/2020 ........................... Aaa/AAA 4,527,850
1,000,000 St. Andrews, SC Public Service District Sewer Systems Rev., 7 3/4% due 1/1/2018 ......... Aaa/AAA 1,061,900
6,000,000 SouthCarolina Public Service Authority Rev., 5 7/8% due 1/1/2023 ........................ Aaa/AAA 6,011,580
2,000,000 SouthCarolina State, GOs 4 1/4% due 3/1/2009 ............................................ Aaa/AAA 1,812,320
1,740,000 South Carolina State Housing Authority (Single Family Mortgage Purchase),
6.70% due 7/1/2010 ................................................................... Aaa/AAA 1,770,189
500,000 South Carolina State Housing Finance & Development Authority (Homeownership
Mortgage), 7.55% due 7/1/2011 ........................................................ Aa/AA 525,500
2,305,000 South Carolina State Housing Finance & Development Authority Rental Housing Rev
(North Bluff Project), 5.60% due 7/1/2016 ............................................ NR/AA 2,222,135
1,000,000 South Carolina State Housing Finance & Development Authority (Multi-Family
Development Rev.), 6 7/8% due 11/15/2023 ............................................. Aaa/NR 1,039,200
4,000,000 Spartanburg,SCWater System Rev., 6.10% due 6/1/2021 ..................................... Aaa/AAA 4,078,600
3,000,000 University of South Carolina Rev., 5 3/4% due 6/1/2026 .................................. Aaa/AAA 2,995,470
2,000,000 Western Carolina Regional Sewer Authority, SC Sewer System Rev., 5 1/2% due 3/1/2010 .... Aaa/AAA 2,007,920
----------
Total Municipal Bonds (Cost $105,281,042) -- 98.1% ............................................................... 108,782,176
Variable Rate Demand Notes (Cost $700,000) -- 0.6% ............................................................... 700,000
Other Assets Less Liabilities -- 1.3% ............................................................................ 1,394,751
------------
NET ASSETS -- 100.0% .............................................................................................$110,876,927
============
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
37
<PAGE>
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL COLORADO
SERIES SERIES
----------- -----------
<S> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Long-term holdings ................................................ $105,114,294 $50,833,137
Short-term holdings ............................................... 2,900,000 800,000
------------ -----------
108,014,294 51,633,137
Cash ................................................................. 170,064 15,615
Interest receivable .................................................. 1,714,502 977,388
Receivable for Capital Stock sold .................................... 54,154 98,440
Expenses prepaid to shareholder
service agent ..................................................... 10,884 8,393
Receivable for securities sold ....................................... -- 5,000
Other ................................................................ 4,298 2,364
------------ -----------
Total Assets ......................................................... 109,968,196 52,740,337
------------ -----------
LIABILITIES:
Payable for securities purchased ..................................... 6,000,000 --
Dividend payable ..................................................... 187,116 93,867
Payable for Capital Stock repurchased ................................ 76,232 20,442
Accrued expenses, taxes, and other ................................... 111,495 75,899
------------ -----------
Total Liabilities .................................................... 6,374,843 190,208
------------ -----------
Net Assets ........................................................... $103,593,353 $52,550,129
============ ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ............................................................ $ 12,821 $ 7,193
Class D ............................................................ 627 35
Additional paid-in capital ........................................... 105,351,781 51,806,193
Undistributed/accumulated net realized
gain (loss) ....................................................... (3,212,821) (37,933)
Net unrealized appreciation of investments ........................... 1,440,945 774,641
------------ -----------
Net Assets ........................................................... $103,593,353 $52,550,129
============ ===========
NET ASSETS:
Class A ............................................................ $ 98,766,967 $52,295,116
Class D ............................................................ $ 4,826,386 $ 255,013
SHARES OF CAPITAL STOCK OUTSTANDING:
($.001 par value):
Class A ............................................................ 12,820,977 7,192,957
Class D ............................................................ 627,103 35,095
NET ASSET VALUE PER SHARE:
Class A ............................................................ $7.70 $7.27
Class D ............................................................ $7.70 $7.27
</TABLE>
<TABLE>
<CAPTION>
GEORGIA LOUISIANA MARYLAND
SERIES SERIES SERIES
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Long-term holdings ................................................ $51,081,918 $56,440,667 $54,412,595
Short-term holdings ............................................... 400,000 200,000 700,000
----------- ----------- -----------
51,481,918 56,640,667 55,112,595
Cash ................................................................. 44,568 244,646 14,235
Interest receivable .................................................. 951,563 954,068 1,109,581
Receivable for Capital Stock sold .................................... 1,401 -- 6,264
Expenses prepaid to shareholder
service agent ..................................................... 10,512 6,705 8,126
Receivable for securities sold ....................................... 1,000,000 -- 20,000
Other ................................................................ 2,269 2,184 2,521
----------- ----------- -----------
Total Assets ......................................................... 53,492,231 57,848,270 56,273,322
----------- ----------- -----------
LIABILITIES:
Payable for securities purchased ..................................... -- -- --
Dividend payable ..................................................... 93,359 107,873 100,973
Payable for Capital Stock repurchased ................................ 402 6,016 4,533
Accrued expenses, taxes, and other ................................... 76,105 80,700 79,537
----------- ----------- -----------
Total Liabilities .................................................... 169,866 194,589 185,043
----------- ----------- -----------
Net Assets ........................................................... $53,322,365 $57,653,681 $56,088,279
=========== =========== ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ............................................................ $ 6,481 $ 7,014 $ 6,765
Class D ............................................................ 295 48 256
Additional paid-in capital ........................................... 51,668,780 54,950,313 53,723,904
Undistributed/accumulated net realized
gain (loss) ....................................................... 178,936 755,285 228,454
Net unrealized appreciation of investments ........................... 1,467,873 1,941,021 2,128,900
----------- ----------- -----------
Net Assets ........................................................... $53,322,365 $57,653,681 $56,088,279
=========== =========== ===========
NET ASSETS:
Class A ............................................................ $50,994,847 $57,264,452 $54,041,025
Class D ............................................................ $ 2,327,518 $ 389,229 $ 2,047,254
SHARES OF CAPITAL STOCK OUTSTANDING:
($.001 par value):
Class A ............................................................ 6,481,361 7,014,115 6,765,277
Class D ............................................................ 295,222 47,689 256,089
NET ASSET VALUE PER SHARE:
Class A ............................................................ $7.87 $8.16 $7.99
Class D ............................................................ $7.88 $8.16 $7.99
</TABLE>
- ----------
See Notes to Financial Statements.
38
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MASSACHUSETTS MICHIGAN MINNESOTA
SERIES SERIES SERIES
---------------- ------------- -------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Long-term holdings ............................................... $108,505,352 $146,276,241 $ 126,846,292
Short-term holdings .............................................. 1,200,000 900,000 --
------------ ------------ ------------
109,705,352 147,176,241 126,846,292
Cash ................................................................ 422,466 96,761 12,629
Interest receivable ................................................. 1,828,352 2,840,280 1,973,254
Receivable for Capital Stock sold ................................... 6,490 35,574 14,311
Expenses prepaid to shareholder
service agent .................................................... 14,412 17,005 14,513
Receivable for securities sold ...................................... -- -- --
Other ............................................................... 4,722 6,323 6,181
------------ ------------ ------------
Total Assets ........................................................ 111,981,794 150,172,184 128,867,180
------------ ------------ ------------
LIABILITIES:
Payable for securities purchased .................................... -- -- --
Dividend payable .................................................... 207,742 280,244 243,987
Payable for Capital Stock repurchased ............................... 382,723 92,823 280,721
Accrued expenses, taxes, and other .................................. 114,756 134,805 133,454
------------ ------------ ------------
Total Liabilities ................................................... 705,221 507,872 658,162
------------ ------------ ------------
Net Assets .......................................................... $111,276,573 $149,664,312 $ 128,209,018
============ ============ ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ........................................................... $ 14,004 $ 17,517 $ 16,423
Class D ........................................................... 179 176 265
Additional paid-in capital .......................................... 107,489,251 142,471,611 123,539,415
Undistributed/accumulated net realized
gain (loss) ...................................................... 1,077,717 1,592,754 (1,439,428)
Net unrealized appreciation of investments .......................... 2,695,422 5,582,254 6,092,343
------------ ------------ ------------
Net Assets .......................................................... $111,276,573 $149,664,312 $ 128,209,018
============ ============ ============
NET ASSETS:
Class A ........................................................... $109,871,715 $148,178,147 $ 126,173,076
Class D ........................................................... $ 1,404,858 $ 1,486,165 $ 2,035,942
SHARES OF CAPITAL STOCK OUTSTANDING:
($.001 par value):
Class A ........................................................... 14,003,651 17,517,430 16,423,181
Class D ........................................................... 179,157 175,819 264,940
NET ASSET VALUE PER SHARE:
Class A ........................................................... $7.85 $8.46 $7.68
Class D ........................................................... $7.84 $8.45 $7.68
</TABLE>
<TABLE>
<CAPTION>
MISSOURI NEW YORK OHIO
SERIES SERIES SERIES
------------- ------------- --------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Long-term holdings ............................................... $48,609,875 $ 81,855,649 $160,101,283
Short-term holdings .............................................. 1,100,000 900,000 600,000
----------- ------------ -------------
49,709,875 82,755,649 160,701,283
Cash ................................................................ 55,634 31,854 102,181
Interest receivable ................................................. 985,185 1,365,926 2,919,914
Receivable for Capital Stock sold ................................... 11,098 21,898 46,193
Expenses prepaid to shareholder
service agent .................................................... 5,442 10,877 21,257
Receivable for securities sold ...................................... -- -- --
Other ............................................................... 2,307 3,264 6,929
----------- ------------ -------------
Total Assets ........................................................ 50,769,541 84,189,468 163,797,757
----------- ------------ -------------
LIABILITIES:
Payable for securities purchased .................................... -- -- --
Dividend payable .................................................... 88,459 155,790 306,479
Payable for Capital Stock repurchased ............................... 99,916 62,008 89,597
Accrued expenses, taxes, and other .................................. 74,735 100,112 148,164
----------- ------------ -------------
Total Liabilities ................................................... 263,110 317,910 544,240
----------- ------------ -------------
Net Assets .......................................................... $50,506,431 $ 83,871,558 $163,253,517
=========== ============ =============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ........................................................... $ 6,474 $ 10,372 $ 20,051
Class D ........................................................... 73 144 124
Additional paid-in capital .......................................... 48,336,311 81,147,321 154,733,440
Undistributed/accumulated net realized
gain (loss) ...................................................... 543,363 215,289 1,380,665
Net unrealized appreciation of investments .......................... 1,620,210 2,498,432 7,119,237
----------- ------------ -------------
Net Assets .......................................................... $50,506,431 $ 83,871,558 $163,253,517
=========== ============ =============
NET ASSETS:
Class A ........................................................... $49,940,979 $ 82,719,213 $162,242,942
Class D ........................................................... $ 565,452 $ 1,152,345 $ 1,010,575
SHARES OF CAPITAL STOCK OUTSTANDING:
($.001 par value):
Class A ........................................................... 6,473,717 10,371,788 20,050,368
Class D ........................................................... 73,284 144,353 124,288
NET ASSET VALUE PER SHARE:
Class A ........................................................... $7.71 $7.98 $8.09
Class D ........................................................... $7.72 $7.98 $8.13
</TABLE>
<TABLE>
<CAPTION>
OREGON SOUTH CAROLINA
SERIES SERIES
------ ------
<S> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Long-term holdings $58,558,137 $108,782,176
Short-term holdings 700,000 700,000
----------- ------------
59,258,137 109,482,176
Cash 25,828 25,502
Interest receivable 1,219,258 1,760,507
Receivable for Capital Stock sold 21,540 55,140
Expenses prepaid to shareholder
service agent 8,533 14,343
Receivable for securities sold -- --
Other 2,668 4,530
----------- ------------
Total Assets 60,535,964 111,342,198
----------- ------------
LIABILITIES:
Payable for securities purchased 1,443,311 --
Dividend payable 106,403 197,654
Payable for Capital Stock repurchased 21,432 156,061
Accrued expenses, taxes, and other 79,551 111,556
----------- ------------
Total Liabilities 1,650,697 465,271
----------- ------------
Net Assets $58,885,267 $110,876,927
=========== ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A $ 7,499 $ 13,400
Class D 201 337
Additional paid-in capital 57,085,025 105,654,559
Undistributed/accumulated net realized
gain (loss) 282,952 1,707,497
Net unrealized appreciation of investments 1,509,590 3,501,134
----------- ------------
Net Assets $58,885,267 $110,876,927
=========== ============
NET ASSETS:
Class A $57,345,429 $108,163,191
Class D $ 1,539,838 $ 2,713,736
SHARES OF CAPITAL STOCK OUTSTANDING:
($.001 par value):
Class A 7,498,730 13,400,425
Class D 201,500 336,525
NET ASSET VALUE PER SHARE:
Class A $7.65 $8.07
Class D $7.64 $8.06
</TABLE>
39
<PAGE>
================================================================================
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL COLORADO GEORGIA LOUISIANA MARYLAND
SERIES SERIES SERIES SERIES SERIES
---------- ------------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................. $6,267,187 $ 3,162,333 $3,288,852 $3,608,436 $3,339,274
--------- --------- --------- --------- ---------
EXPENSES:
Management fees ........................... 523,545 267,392 285,693 301,833 283,435
Shareholder account services .............. 121,990 65,683 67,100 68,235 73,379
Distribution and service fees ............. 109,177 52,511 75,161 62,786 65,575
Auditing and legal fees ................... 32,702 38,344 34,213 35,670 34,196
Custody and related services .............. 26,997 6,355 13,117 12,922 9,187
Registration .............................. 18,874 4,224 4,991 4,629 7,353
Shareholder reports and communications .... 12,558 9,381 6,226 7,607 7,755
Trustees' fees and expenses ............... 4,670 4,966 4,306 4,382 4,390
Miscellaneous ............................. 5,048 4,757 3,372 1,882 3,294
--------- --------- --------- --------- --------
Total expenses ............................ 855,561 453,613 494,179 499,946 488,564
--------- --------- --------- --------- --------
Net investment income ..................... 5,411,626 2,708,720 2,794,673 3,108,490 2,850,710
--------- --------- --------- --------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.... 1,270,012 230,074 234,736 764,403 237,843
Net change in unrealized appreciation
of investments .......................... 477,663 (404,283) 574,897 (27,213) 207,699
--------- --------- --------- --------- ------
Net gain (loss) on investments ............ 1,747,675 (174,209) 809,633 737,190 445,542
--------- --------- --------- --------- -------
Increase in Net Assets from
Operations .............................. $7,159,301 $ 2,534,511 $3,604,306 $ 3,845,680 $3,296,252
========= ========= ========= ========== ==========
- ----------
See Notes to Financial Statements.
</TABLE>
40
<PAGE>
================================================================================
For the Year Ended September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MASSACHUSETTS MICHIGAN MINNESOTA MISSOURI NEW YORK OHIO
SERIES SERIES SERIES SERIES SERIES SERIES
------------ ------------- ------------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................. $ 6,894,794 $ 9,206,730 $ 8,270,642 $ 2,994,894 $5,090,734 $ 10,227,494
--------- --------- --------- --------- --------- ----------
EXPENSES:
Management fees ........................... 571,658 759,311 659,120 254,770 423,159 839,336
Shareholder account services .............. 152,595 178,366 174,478 60,686 87,366 190,504
Distribution and service fees ............. 118,706 163,525 148,374 54,939 82,699 172,600
Auditing and legal fees ................... 35,220 35,626 37,098 36,904 32,702 33,866
Custody and related services .............. 19,533 25,707 30,532 11,344 16,444 36,248
Registration .............................. 8,336 6,770 3,706 4,615 5,798 5,293
Shareholder reports and communications..... 9,731 10,446 17,163 10,387 8,126 16,136
Trustees' fees and expenses ............... 4,545 4,534 4,566 4,342 4,532 4,564
Miscellaneous ............................. 5,200 10,136 5,923 3,211 4,355 6,744
--------- --------- ---------- --------- --------- ---------
Total expenses ............................ 925,524 1,194,421 1,080,960 441,198 665,181 1,305,291
--------- --------- --------- --------- --------- ---------
Net investment income ..................... 5,969,270 8,012,309 7,189,682 2,553,696 4,425,553 8,922,203
--------- --------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.... 1,211,500 1,595,202 (1,345,678) 702,168 1,161,126 1,396,965
Net change in unrealized appreciation
of investments .......................... (502,191) (620,275) (718,882) (147,019) 36,180 (1,059,760)
------- ------- ---------- ------- --------- -------
Net gain (loss) on investments ............ 709,309 974,927 (2,064,560) 555,149 1,197,306 337,205
------- ------- ---------- ------- --------- -------
Increase in Net Assets from
Operations .............................. $ 6,678,579 $ 8,987,236 $ 5,125,122 $ 3,108,845 $5,622,859 $ 9,259,408
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
SOUTH
OREGON CAROLINA
SERIES SERIES
<S> <C> <C>
INVESTMENT INCOME: ----------- ---------
Interest ................................. $ 3,636,740 $ 6,744,056
----------- ----------
EXPENSES:
Management fees .......................... 301,447 567,688
Shareholder account services ............. 76,118 135,214
Distribution and service fees ............ 72,961 130,776
Auditing and legal fees .................. 37,556 33,902
Custody and related services ............. 18,134 31,792
Registration ............................. 2,915 2,408
Shareholder reports and communications.... 11,334 14,069
Trustees' fees and expenses .............. 4,336 4,321
Miscellaneous ............................ 4,260 4,942
--------- ---------
Total expenses ........................... 529,061 925,112
--------- ---------
Net investment income .................... 3,107,679 5,818,944
--------- ---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments... 286,078 1,720,268
Net change in unrealized appreciation
of investments ......................... (342,324) (81,642)
-------- -------
Net gain (loss) on investments ........... (56,246) 1,638,626
-------- -------
Increase in Net Assets from
Operations ............................. $ 3,051,433 $ 7,457,570
========= =========
</TABLE>
- ----------
See Notes to Financial Statements.
41
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL SERIES COLORADO SERIES
--------------- ---------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ ------------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income.......... $5,411,626 $5,912,049 $2,708,720 $2,945,189
Net realized gain (loss) on
investments.................. 1,270,012 (4,331,294) 230,074 318,881
Net change in unrealized
appreciation/depreciation of
investments.................. 477,663 10,223,855 (404,283) 1,121,736
----------- ----------- ---------- ----------
Increase in Net Assets from
Operations..................... 7,159,301 11,804,610 2,534,511 4,385,806
----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................... (5,337,292) (5,878,199) (2,698,764) (2,940,344)
Class D.................... (74,334) (33,850) (9,956) (4,845)
Net realized gain on
investments:
Class A.................... -- -- -- --
Class D.................... -- -- -- --
----------- ----------- ---------- ----------
Decrease in Net Assets from
Distributions.................. (5,411,626) (5,912,049) (2,708,720) (2,945,189)
----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A..................... 6,105,129 2,851,364 1,368,525 1,419,305
Class D..................... 940,723 885,065 56,953 102,710
Net asset value of shares issued
in payment of dividends:
Class A..................... 2,793,160 3,020,506 1,465,852 1,614,670
Class D..................... 56,590 23,901 5,835 3,014
Exchanged from associated
Funds:
Class A..................... 30,244,931 9,766,862 1,429,514 523,761
Class D..................... 8,276,409 835,262 1,923 --
Net asset value of shares issued
in payment of gain distribution:
Class A..................... -- -- -- --
Class D..................... -- -- -- --
----------- ----------- ---------- ----------
Total.......................... 48,416,942 17,382,960 4,328,602 3,663,460
----------- ----------- ---------- ----------
Cost of shares repurchased:
Class A..................... (13,127,822) (18,952,660) (5,606,419) (7,041,417)
Class D..................... (326,631) (112,028) (1,000) (10,731)
Exchanged into associated Funds:
Class A..................... (33,145,022) (9,700,508) (1,047,428) (1,293,621)
Class D..................... (5,370,882) (931,548) -- (1,000)
----------- ----------- ---------- ----------
Total.......................... (51,970,357) (29,696,744) (6,654,847) (8,346,769)
----------- ----------- ---------- ----------
Decrease in Net Assets
from Capital Share
Transactions................... (3,553,415) (12,313,784) (2,326,245) (4,683,309)
----------- ----------- ---------- ----------
Increase (Decrease) in Net
Assets......................... (1,805,740) (6,421,223) (2,500,454) (3,242,692)
----------- ----------- ---------- ----------
NET ASSETS:
Beginning of year.............. 105,399,093 111,820,316 55,050,583 58,293,275
----------- ----------- ---------- -----------
End of year.................... $103,593,353 $105,399,093 $ 52,550,129 $ 55,050,583
============ ============ ============ ============
</TABLE>
- ----------
See Notes to Financial Statements.
42
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GEORGIA SERIES LOUISIANA SERIES
-------------- ----------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ ------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income ............... $ 2,794,673 $ 3,154,534 $ 3,108,490 $ 3,363,531
Net realized gain (loss) on
investments ....................... 234,736 362,501 764,403 468,171
Net change in unrealized
appreciation/depreciation of
investments ....................... 574,897 3,043,005 (27,213) 2,190,601
------------ ------------ ------------ ------------
Increase in Net Assets from
Operations .......................... 3,604,306 6,560,040 3,845,680 6,022,303
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ......................... (2,697,792) (3,090,529) (3,091,821) (3,335,643)
Class D ......................... (96,881) (64,005) (16,669) (27,888)
Net realized gain on
investments:
Class A ......................... (395,597) (831,300) (467,263)
Class D ......................... (14,504) (13,226) (3,540) (12,456)
------------ ------------ ------------ ------------
Decrease in Net Assets from
Distributions ....................... (3,204,774) (3,999,060) (3,579,293) (4,452,407)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A ......................... 2,193,735 2,570,447 2,360,417 1,592,654
Class D ......................... 1,001,710 1,264,930 95,464 65,763
Net asset value of shares issued
in payment of dividends:
Class A ......................... 1,741,886 1,976,148 1,645,661 1,855,635
Class D ......................... 77,107 57,730 10,639 23,376
Exchanged from associated
Funds:
Class A ......................... 290,528 1,271,396 4,573 250,945
Class D ......................... 7,853 250 -- --
Net asset value of shares issued
in payment of gain distribution:
Class A ......................... 304,162 644,018 317,865 766,089
Class D ......................... 13,827 12,212 3,070 9,263
------------ ------------ ------------ ------------
Total ............................... 5,630,808 7,797,131 4,437,689 4,563,725
------------ ------------ ------------ ------------
Cost of shares repurchased:
Class A ......................... (10,153,419) (10,210,900) (8,844,981) (5,202,189)
Class D ......................... (419,468) (125,984) (185,368) (354,393)
Exchanged into associated
Funds:
Class A ......................... (1,457,061) (2,507,796) (467,638) (269,863)
Class D ......................... (435,462) (71,202) (5,400) --
------------ ------------ ------------ ------------
Total ............................... (12,465,410) (12,915,882) (9,503,387) (5,826,445)
------------ ------------ ------------ ------------
Decrease in Net Assets
from Capital Share
Transactions ........................ (6,834,602) (5,118,751) (5,065,698) (1,262,720)
------------ ------------ ------------ ------------
Increase (Decrease) in Net .......... (6,435,070) (2,557,771) (4,799,311) 307,176
Assets
NET ASSETS:
Beginning of year ................... 59,757,435 62,315,206 62,452,992 62,145,816
------------ ------------ ------------ ------------
End of year ......................... $ 53,322,365 $ 59,757,435 $ 57,653,681 $ 62,452,992
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MARYLAND SERIES MASSACHUSETTS SERIES
--------------- --------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ ------------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ................. $ 2,850,710 $ 3,008,028 $ 5,969,270 $ 6,394,660
Net realized gain (loss) on
investments ......................... 237,843 236,106 1,211,500 1,446,650
Net change in unrealized
appreciation/depreciation of
investments ......................... 207,699 2,550,147 (502,191) 2,623,425
------------ ------------ ------------- -------------
Increase in Net Assets from ........... 3,296,252 5,794,281 6,678,579 10,464,735
------------ ------------ ------------- -------------
Operations
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ........................... (2,793,641) (2,986,376) (5,917,218) (6,351,161)
Class D ........................... (57,069) (21,652) (52,052) (43,499)
Net realized gain on
investments:
Class A ........................... (237,764) (980,988) (1,556,813) (490,162)
Class D ........................... (3,924) (7,361) (12,717) (4,647)
------------ ------------ ------------- -------------
Decrease in Net Assets from ........... (3,092,398) (3,996,377) (7,538,800) (6,889,469)
------------ ------------ ------------- -------------
Distributions
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A ........................... 2,002,265 1,825,028 3,289,916 3,096,538
Class D ........................... 1,482,760 365,965 664,274 618,045
Net asset value of shares
issued in payment of dividends:
Class A ........................... 1,630,540 1,711,454 3,456,082 3,662,542
Class D ........................... 47,295 14,257 33,741 33,446
Exchanged from associated
Funds:
Class A ........................... 1,117,092 1,329,821 4,648,026 5,018,822
Class D ........................... -- 15,045 180,514 70,140
Net asset value of shares issued
in payment of gain distribution:
Class A ........................... 175,287 716,294 1,131,226 373,978
Class D ........................... 3,460 5,227 9,793 4,460
------------ ------------ ------------- -------------
Total ................................. 6,458,699 5,983,091 13,413,572 12,877,971
------------ ------------ ------------- -------------
Cost of shares repurchased:
Class A ........................... (6,209,930) (6,866,029) (12,032,238) (14,533,095)
Class D ........................... (122,344) (132,593) (239,034) (126,610)
Exchanged into associated
Funds:
Class A ........................... (1,151,307) (1,469,104) (5,473,480) (5,616,572)
Class D ........................... (10,726) (80,763) (133,437) (824,191)
------------ ------------ ------------- -------------
Total ................................. (7,494,307) (8,548,489) (17,878,189) (21,100,468)
------------ ------------ ------------- -------------
Decrease in Net Assets
from Capital Share .................... (1,035,608) (2,565,398) (4,464,617) (8,222,497)
------------ ------------ ------------- -------------
Transactions (4,647,231)
Increase (Decrease) in Net Assets...... (831,754) (767,494) (5,324,838)
NET ASSETS:
Beginning of year ..................... 56,920,033 57,687,527 116,601,411 121,248,642
------------ ------------ ------------- -------------
End of year ........................... $ 56,088,279 $ 56,920,033 $ 111,276,573 $ 116,601,411
============ ============ ============= =============
43
</TABLE>
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MICHIGAN SERIES MINNESOTA SERIES
--------------- ----------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ ------------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income.......... $8,012,309 $8,244,445 $7,189,682 $7,901,996
Net realized gain (loss) on
investments.................. 1,595,202 2,565,892 (1,345,678) 250,044
Net change in unrealized
appreciation/depreciation of
investments.................. (620,275) 2,886,770 (718,882) 1,679,385
----------- ----------- ---------- ----------
Increase in Net Assets from
Operations..................... 8,987,236 13,697,107 5,125,122 9,831,425
----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................... (7,945,727) (8,206,113) (7,091,290) (7,807,472)
Class D.................... (66,582) (38,332) (98,392) (94,524)
Net realized gain on
investments:
Class A.................... (2,526,473) (775,115) (339,461) (243,727)
Class D.................... (24,970) (3,791) (5,862) (3,101)
----------- ----------- ---------- ----------
Decrease in Net Assets from
Distributions.................. (10,563,752) (9,023,351) (7,535,005) (8,148,824)
----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A..................... 5,017,723 6,333,074 5,136,193 4,204,185
Class D..................... 643,962 580,729 355,058 859,498
Net asset value of shares issued
in payment of dividends:
Class A..................... 4,892,727 5,053,914 4,809,942 5,253,143
Class D..................... 43,735 30,472 74,558 63,245
Exchanged from associated
Funds:
Class A..................... 2,197,763 864,699 496,211 1,435,131
Class D..................... 210,059 104,572 48,646 159,356
Net asset value of shares issued
in payment of gain distribution:
Class A..................... 1,901,806 582,931 270,799 192,123
Class D..................... 21,146 3,281 4,666 2,291
----------- ----------- ---------- ----------
Total.......................... 14,928,921 13,553,672 11,196,073 12,168,972
----------- ----------- ---------- ----------
Cost of shares repurchased:
Class A..................... (13,211,454) (14,573,617) (13,463,390) (12,629,875)
Class D..................... (368,116) (181,421) (507,655) (277,761)
Exchanged into associated Funds:
Class A..................... (2,652,409) (2,418,114) (1,423,552) (2,382,699)
Class D..................... (217,280) ( 58,666) (135,371) (247,272)
----------- ----------- ---------- -----------
Total.......................... (16,449,259) (17,231,818) (15,529,968) (15,537,607)
----------- ----------- ---------- -----------
Decrease in Net Assets
from Capital Share
Transactions................... (1,520,338) (3,678,146) (4,333,895) (3,368,635)
----------- ----------- ---------- -----------
Increase (Decrease) in Net
Assets......................... (3,096,854) 995,610 (6,743,778) (1,686,034)
NET ASSETS:
Beginning of year.............. 152,761,166 151,765,556 134,952,796 136,638,830
------------ ------------ ------------ ------------
End of year.................... $149,664,312 $152,761,166 $128,209,018 $134,952,796
============ ============ ============ ============
</TABLE>
- ----------
See Notes to Financial Statements.
44
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MISSOURI SERIES NEW YORK SERIES
------------------------ ------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ ------------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income.......... $2,553,696 $2,737,886 $4,425,553 $4,773,085
Net realized gain (loss) on
investments.................. 702,168 331,360 1,161,126 (945,837)
Net change in unrealized
appreciation/depreciation of
investments.................. (147,019) 2,085,364 36,180 5,008,458
----------- ----------- ---------- ----------
Increase in Net Assets from
Operations..................... 3,108,845 5,154,610 5,622,859 8,835,706
----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................... (2,529,631) (2,720,786) (4,381,889) (4,746,318)
Class D.................... (24,065) (17,100) (43,664) (26,767)
Net realized gain on
investments:
Class A.................... (477,820) (491,076) -- (1,996,017)
Class D.................... (5,541) (3,310) -- (10,892)
----------- ----------- ---------- ----------
Decrease in Net Assets from
Distributions.................. (3,037,057) (3,232,272) (4,425,553) (6,779,994)
----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A..................... 2,604,871 1,490,314 3,350,809 5,616,771
Class D..................... 354,207 221,573 411,499 157,609
Net asset value of shares issued
in payment of dividends:
Class A..................... 1,314,503 1,401,213 2,485,560 2,634,442
Class D..................... 15,852 12,801 31,604 21,246
Exchanged from associated
Funds:
Class A..................... 90,007 365,314 3,161,968 2,263,947
Class D..................... 44,301 -- 184,854 364,576
Net asset value of shares issued
in payment of gain distribution:
Class A..................... 311,188 321,122 -- 1,604,994
Class D..................... 2,649 3,144 -- 9,747
----------- ----------- ---------- ----------
Total.......................... 4,737,578 3,815,481 9,626,294 12,673,332
----------- ----------- ---------- ----------
Cost of shares repurchased:
Class A..................... (4,836,102) (6,123,870) (9,268,664) (15,940,087)
Class D..................... (304,921) 70,945) (258,544) (156,491)
Exchanged into associated Funds:
Class A..................... (788,552) (814,682) (2,173,151) (5,149,991)
Class D..................... (57,294) ( 15,500) (116,722) (7,500)
----------- ----------- ---------- -----------
Total.......................... (5,986,869) (7,024,997) (11,817,081) (21,254,069)
----------- ----------- ---------- -----------
Decrease in Net Assets
from Capital Share
Transactions................... (1,249,291) (3,209,516) (2,190,787) (8,580,737)
----------- ----------- ---------- -----------
Increase (Decrease) in Net
Assets......................... (1,177,503) (1,287,178) (993,481) (6,525,025)
NET ASSETS:
Beginning of year.............. 51,683,934 52,971,112 84,865,039 91,390,064
------------ ------------ ------------ ------------
End of year.................... $ 50,506,431 $ 51,683,934 $ 83,871,558 $ 84,865,039
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
OHIO SERIES OREGON SERIES
------------------------ --------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ --------------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income.......... $8,922,203 $9,431,883 $3,107,679 $3,208,270
Net realized gain (loss) on
investments.................. 1,396,965 810,038 286,078 70,060
Net change in unrealized
appreciation/depreciation of
investments.................. (1,059,760) 5,388,960 (342,324) 1,780,874
----------- ----------- ---------- ----------
Increase in Net Assets from
Operations..................... 9,259,408 15,630,881 3,051,433 5,059,204
----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................... (8,882,222) (9,410,971) (3,041,984) (3,154,482)
Class D.................... (39,981) (20,912) (65,695) (53,788)
Net realized gain on
investments:
Class A.................... (794,088) (1,594,353) (61,975) (140,983)
Class D.................... (3,482) (3,594) (1,566) (2,232)
----------- ----------- ---------- ---------
Decrease in Net Assets from
Distributions.................. (9,719,773) (11,029,830) (3,171,220) (3,351,485)
----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A..................... 4,520,137 4,802,866 3,453,799 3,693,429
Class D..................... 348,741 277,972 410,708 897,335
Net asset value of shares issued
in payment of dividends:
Class A..................... 5,490,252 5,871,637 1,922,589 1,966,334
Class D..................... 34,422 17,037 51,715 38,946
Exchanged from associated
Funds:
Class A..................... 939,551 787,632 554,373 884,994
Class D..................... 4,272 28,117 21,324 --
Net asset value of shares issued
in payment of gain distribution:
Class A..................... 599,050 1,221,569 46,901 107,524
Class D..................... 3,281 3,510 1,353 1,995
----------- ----------- ---------- ----------
Total.......................... 11,939,706 13,010,340 6,462,762 7,590,557
----------- ----------- ---------- ----------
Cost of shares repurchased:
Class A..................... (16,177,726) (15,867,883) (7,135,242) (6,179,880)
Class D..................... (24,324) (10,683) (304,546) (210,837)
Exchanged into associated Funds:
Class A..................... (2,863,802) (2,675,846) (932,697) (2,472,172)
Class D..................... (10,486) -- (129,221) (118,837)
----------- ----------- ---------- -----------
Total.......................... (19,076,338) (18,554,412) (8,501,706) (8,981,726)
----------- ----------- ---------- -----------
Decrease in Net Assets
from Capital Share
Transactions................... (7,136,632) (5,544,072) (2,038,944) (1,391,169)
----------- ----------- ---------- -----------
Increase (Decrease) in Net
Assets......................... (7,596,997) (943,021) (2,158,731) 316,550
NET ASSETS:
Beginning of year.............. 170,850,514 171,793,535 61,043,998 60,727,448
------------ ------------ ------------ ------------
End of year.................... $163,253,517 $170,850,514 $ 58,885,267 $ 61,043,998
============ ============ ============ ============
</TABLE>
45
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SOUTH CAROLINA SERIES
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
1996 1995
---- ----
OPERATIONS:
<S> <C> <C>
Net investment income.......... $5,818,944 $6,032,145
Net realized gain (loss) on
investments.................. 1,720,268 255,806
Net change in unrealized
appreciation/depreciation of
investments.................. (81,642) 5,014,984
----------- -----------
Increase in Net Assets from
Operations..................... 7,457,570 11,302,935
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................... (5,721,911) (5,962,919)
Class D.................... (97,033) (69,226)
Net realized gain on
investments:
Class A.................... (253,251) (207,068)
Class D.................... (5,029) (2,607)
----------- -----------
Decrease in Net Assets from
Distributions.................. (6,077,224) (6,241,820)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A..................... 7,339,428 7,883,988
Class D..................... 1,431,442 440,392
Net asset value of shares issued
in payment of dividends:
Class A..................... 3,322,251 3,428,206
Class D..................... 85,491 56,548
Exchanged from associated
Funds:
Class A..................... 844,016 1,353,402
Class D..................... -- 89,667
Net asset value of shares issued
in payment of gain distribution:
Class A..................... 195,931 162,756
Class D..................... 4,927 2,494
----------- -----------
Total.......................... 13,223,486 13,417,453
----------- -----------
Cost of shares repurchased:
Class A..................... (14,837,001) (17,698,986)
Class D..................... (519,148) (360,978)
Exchanged into associated Funds:
Class A..................... (2,478,917) (2,826,362)
Class D..................... (16,928) (78,655)
----------- -----------
Total.......................... (17,851,994) (20,964,981)
----------- -----------
Decrease in Net Assets
from Capital Share
Transactions................... (4,628,508) (7,547,528)
----------- -----------
Increase (Decrease) in Net
Assets......................... (3,248,162) (2,486,413)
NET ASSETS:
Beginning of year.............. 114,125,089 116,611,502
------------ ------------
End of year.................... $110,876,927 $114,125,089
============ ============
</TABLE>
- ----------
See Notes to Financial Statements.
46
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Seligman Municipal Fund Series, Inc., formerly, Seligman Tax-Exempt Fund
Series, Inc., (the "Fund") consists of 13 separate series: the "National
Series," the "Colorado Series," the "Georgia Series," the "Louisiana Series,"
the "Maryland Series," the "Massachusetts Series," the "Michigan Series," the
"Minnesota Series," the "Missouri Series," the "New York Series," the "Ohio
Series," the "Oregon Series," and the "South Carolina Series." Each Series of
the Fund offers two classes of shares. All shares existing prior to February 1,
1994, were classified as Class A shares. Class A shares are sold with an initial
sales charge of up to 4.75% and a continuing service fee of up to 0.25% on an
annual basis. Class A shares purchased in an amount of $1,000,000 or more are
sold without an initial sales charge but are subject to a contingent deferred
sales load ("CDSC") of 1% on redemptions within 18 months of purchase. Class D
shares are sold without an initial sales charge but are subject to a
distribution fee of up to 0.75% and a service fee of up to 0.25% on an annual
basis, and a CDSL of 1% imposed on certain redemptions made within one year of
purchase. The two classes of shares for each Series represent interests in the
same portfolio of investments, have the same rights and are generally identical
in all respects except that each class bears its separate distribution and
certain other class expenses, and has exclusive voting rights with respect to
any matter to which a separate vote of any class is required.
2. Significant accounting policies followed, all in conformity with generally
accepted accounting principles, are given below:
a. All tax-exempt securities and other short-term holdings maturing in more than
60 days are valued based upon quotations provided by an independent pricing
service or, in their absence, at fair value determined in accordance with
procedures approved by the Board of Directors. Short-term holdings maturing in
60 days or less are generally valued at amortized cost.
b. There is no provision for federal income or excise tax. Each Series has
elected to be taxed as a regulated investment company and intends to distribute
substantially all taxable net income and net gain realized. Dividends are
declared daily and paid monthly.
c. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income tax
purposes. Interest income is recorded on the accrual basis. The Fund amortizes
original issue discounts and premiums paid on purchases of portfolio securities.
Discounts other than original issue discounts are not amortized.
d. All income, expenses (other than class-specific expenses), and realized and
unrealized gains or losses are allocated daily to each class of shares based
upon the relative value of the shares of each cla 3/4 Class-specific expenses,
which include distribution and service fees and any other items that are
specifically attributed to a particular class, are charged directly to such
cla 3/4 For the year ended September 30, 1996, distribution and service fees
were the only class-specific expenses.
e. The treatment for financial statement purposes of distributions made during
the year from net investment income or net realized gains may differ from their
ultimate treatment for federal income tax purposes. These differences are caused
primarily by differences in the timing of the recognition of certain components
of income, expense, and capital gain for federal income tax purposes. Where such
differences are permanent in nature, they are reclassified in the components of
net assets based on their ultimate characterization for federal income tax
purposes. Any such reclassification will have no effect on net assets, results
of operations, or net asset value per share of the Fund. At September 30, 1996,
realized capital gains for federal tax purposes exceeded realized capital gains
for financial statement purposes for the Minnesota Series by $1,439,428.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the year ended September 30, 1996, were as follows:
SERIES PURCHASES SALES
------ --------- -----
National $35,263,857 $35,494,531
Colorado 6,405,600 9,330,531
Georgia 9,037,810 16,811,229
Louisiana 5,957,485 11,484,148
Maryland 3,512,218 3,033,100
Massachusetts 29,288,895 33,926,280
Michigan 29,300,120 32,144,653
Minnesota 34,276,811 34,781,821
Missouri 3,961,250 6,838,449
New York 21,560,440 24,099,490
Ohio 21,170,955 28,708,510
Oregon 17,038,668 18,193,093
South Carolina 23,148,520 27,825,391
47
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
At September 30, 1996, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes, and the
tax basis gross unrealized appreciation and depreciation of portfolio securities
were as follows:
TOTAL TOTAL
UNREALIZED UNREALIZED
SERIES APPRECIATION DEPRECIATION
-------- ---------------- ----------------
National $2,838,707 $1,397,762
Colorado 2,370,526 1,595,885
Georgia 1,988,118 520,245
Louisiana 2,472,756 531,735
Maryland 2,470,422 341,522
Massachusetts 3,579,573 884,151
Michigan 5,702,789 120,535
Minnesota 6,826,658 734,315
Missouri 2,053,138 432,928
New York 2,879,723 381,291
Ohio 7,847,432 728,195
Oregon 1,775,249 265,659
South Carolina 3,868,077 366,943
4. J. & W. Seligman & Co. Incorporated (the "Manager") manages the affairs of
the Fund and provides the necessary personnel and facilities. Compensation of
all officers of the Fund, all directors of the Fund who are employees or
consultants of the Manager, and all personnel of the Fund and the Manager is
paid by the Manager. The Manager's fee, calculated daily and payable monthly, is
equal to 0.50% per annum of each Series' average daily net assets.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of each Series' shares and an affiliate of the Manager, received
the following concessions after commissions were paid to dealers for the sale of
Class A shares:
DISTRIBUTOR DEALER
SERIES CONCESSIONS COMMISSIONS
----- ----------- -----------
National $15,618 $120,046
Colorado 6,810 50,693
Georgia 10,864 82,566
Louisiana 11,649 85,328
Maryland 10,368 73,461
Massachusetts 13,360 93,885
Michigan 21,956 161,994
Minnesota 22,738 168,882
Missouri 7,979 61,487
New York 11,497 86,499
Ohio 20,073 150,807
Oregon 13,323 100,702
South Carolina 32,649 237,864
The Fund has an Administration, Shareholder Services and Distribution Plan (the
"Plan") with respect to Class A shares under which service organizations can
enter into agreements with the Distributor and receive continuing fees of up to
0.25% on an annual basis, payable quarterly, of the average daily net assets of
the Class A shares attributable to the particular service organizations for
providing personal services and/or the maintenance of shareholder accounts. For
the year ended September 30, 1996, the Distributor charged such fees to the Fund
pursuant to the Plan as follows:
ANNUALIZED
TOTAL FEES % OF AVERAGE
SERIES PAID NET ASSETS
----- ---------- ----------
National $91,913 .09%
Colorado 50,124 .10
Georgia 51,150 .09
Louisiana 58,864 .10
Maryland 51,901 .10
Massachusetts 106,702 .10
Michigan 148,323 .10
Minnesota 126,825 .10
Missouri 49,092 .10
New York 72,626 .09
Ohio 163,554 .10
Oregon 57,596 .10
South Carolina 107,885 .10
48
<PAGE>
The Fund has a Plan with respect to Class D shares under which service
organizations can enter into agreements with the Distributor and receive
continuing fees for providing personal services and/or the maintenance of
shareholder accounts of up to 0.25% on a annual basis of the average daily net
assets of the Class D shares for which the organizations are responsible, and
fees for providing other distribution assistance of up to 0.75% on an annual
basis of such average daily net assets. Such fees are paid monthly by the Fund
to the Distributor pursuant to the Plan. For the year ended September 30, 1996,
fees paid equivalent to 1% per annum of the average daily net assets of Class D
shares were as follows:
SERIES SERIES
------ ------
National $17,264 Minnesota $21,549
Colorado 2,387 Missouri 5,847
Georgia 24,011 New York 10,073
Louisiana 3,922 Ohio 9,046
Maryland 13,674 Oregon 15,365
Massachusetts 12,004 South Carolina 22,891
Michigan 15,202
The Distributor is entitled to retain any CDSL imposed on certain redemptions of
Class D shares occurring within one year of purchase. For the year ended
September 30, 1996, such charges were as follows:
SERIES SERIES
------ ------
National $1,933 Minnesota $ 258
Georgia 280 Missouri 1,486
Louisiana 131 New York 1,810
Maryland 370 Oregon 192
Massachusetts 641 South Carolina 3,624
Michigan 1,551
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of Fund shares, as well as distribution and
service fees pursuant to the Plan. For the year ended September 30, 1996,
Seligman Services, Inc. received commis-sions from sales of shares of each
Series and distribution and service fees pursuant to the Plan, as follows:
DISTRIBUTION AND
SERIES COMMISSIONS SERVICE FEES
------ ------------- ---------------------
National $1,736 $6,257
Colorado 4,437 2,997
Georgia 525 667
Louisiana -- 647
Maryland 1,251 1,399
Massachusetts 689 2,555
Michigan 1,315 2,656
Minnesota 1,717 2,122
Missouri 1,754 3,149
New York 2,144 8,922
Ohio 2,276 2,929
Oregon 763 797
South Carolina 2,229 1,484
Seligman Data Corp., which is owned by certain associated investment companies,
charged at cost for shareholder account services the following amounts:
SERIES SERIES
------ ------
National $121,990 Minnesota $174,478
Colorado 65,683 Missouri 60,686
Georgia 67,100 New York 87,366
Louisiana 68,235 Ohio 190,504
Maryland 73,379 Oregon 76,118
Massachusetts 152,595 South Carolina 135,214
Michigan 178,366
Certain officers and directors of the Fund are officers or directors of the
Manager, the Distributor, Seligman Services, Inc., and/or Seligman Data Corp.
Fees of $46,000 were incurred by the Fund for the legal services of Sullivan &
Cromwell, a member of which firm is a director of the Fund.
49
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
The Fund has a compensation agreement under which directors who receive fees may
elect to defer receiving such fees. Interest is accrued on the deferred
balances. Deferred fees and the related accrued interest are not deductible for
federal income tax purposes until such amounts are paid. The annual cost of such
fees and interest is included in directors' fees and expenses, and the
accumulated balances thereof at September 30, 1996, are as follows:
SERIES SERIES
- ----- -----
National $16,686 Minnesota $14,084
Colorado 10,266 Missouri 10,266
Georgia 9,586 New York 14,084
Louisiana 11,203 Ohio 14,084
Maryland 11,203 Oregon 10,083
Massachusetts 14,084 South Carolina 9,586
Michigan 13,582
5. In accordance with current federal income tax law, each of the Series' net
realized capital gains and losses are considered separately for purposes of
determining taxable capital gains. At September 30, 1996, the net loss
carryforwards for the National and Colorado Series amounted to $3,212,821 and
$37,933, respectively, which are available for offset against future taxable net
gains, expiring in various amounts through 2004. Accordingly, no capital gain
distributions are expected to be paid to shareholders of the National and
Colorado Series until net capital gains have been realized in excess of the
available capital loss carryforwards.
6. The Fund has 1,300,000,000 shares of Capital Stock authorized. At September
30, 1996, 100,000,000 shares were authorized for each Series of the Fund.
Transactions in shares of Capital Stock were as follows:
<TABLE>
<CAPTION>
NATIONAL SERIES COLORADO SERIES GEORGIA SERIES
--------------------------- ----------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
--------------------------- ------------------------ -------------------------
1996 1995 1996 1995 1996 1995
------------- ---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A ..................... 787,838 390,656 186,485 197,677 278,594 342,804
Class D ..................... 122,738 119,342 7,709 14,107 125,912 168,888
Shares issued in payment
of dividends:
Class A ..................... 362,598 414,132 200,194 226,321 221,658 263,035
Class D ..................... 7,360 3,246 799 424 9,793 7,605
Exchanged from associated Funds:
Class A ..................... 3,977,611 1,396,452 197,002 73,282 36,617 169,875
Class D ..................... 1,084,989 122,280 258 -- 1,004 32
Shares issued in payment
of gain distributions:
Class A ..................... -- -- -- -- 38,308 94,017
Class D ..................... -- -- -- -- 1,739 1,780
--------- --------- -------- --------- --------- ---------
Total 6,343,134 2,446,108 592,447 511,811 713,625 1,048,036
--------- --------- -------- --------- --------- ---------
Shares repurchased:
Class A ..................... (1,709,147) (2,610,634) (766,043) (997,269) (1,294,735) (1,363,466)
Class D ..................... (42,115) (14,877) (139) (1,468) (53,212) (16,580)
Exchanged into associated Funds:
Class A ..................... (4,341,083) (1,359,162) (142,468) (185,668) (185,879) (337,410)
Class D ..................... (706,332) (131,648) -- (136) (55,816) (9,351)
--------- --------- -------- --------- --------- ---------
Total ............................ (6,798,677) (4,116,321) (908,650) (1,184,541) (1,589,642) (1,726,807)
--------- --------- -------- --------- --------- ---------
Decrease in shares ............... (455,543) (1,670,213) (316,203) (672,730) (876,017) (678,771)
========= ========= ======== ========= ========= =========
</TABLE>
50
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LOUISIANA SERIES MARYLAND SERIES MASSACHUSETTS SERIES
---------------------------- ----------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
---------------------------- ----------------------- -------------------------
1996 1995 1996 1995 1996 1995
------------- ---------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A ................................... 289,128 203,544 251,027 235,573 420,626 399,337
Class D ................................... 11,771 8,145 187,262 46,497 84,893 80,201
Shares issued in payment of dividends:
Class A ................................... 201,153 235,011 203,932 222,065 439,779 475,382
Class D ................................... 1,298 2,969 5,928 1,836 4,303 4,357
Exchanged from associated Funds:
Class A ................................... 559 32,811 138,972 174,666 598,715 643,216
Class D ................................... -- -- -- 1,883 23,224 8,872
Shares issued in payment of gain distributions:
Class A ................................... 38,670 104,944 21,748 101,029 142,832 51,797
Class D ................................... 374 1,269 429 737 1,238 618
---------- -------- -------- ---------- ---------- ----------
Total ...................................... 542,953 588,693 809,298 784,286 1,715,610 1,663,780
---------- -------- -------- ---------- ---------- ----------
Shares repurchased:
Class A .................................. (1,076,395) (660,838) (777,341) (892,644) (1,532,595) (1,900,781)
Class D .................................. (22,258) (43,956) (15,227) (16,759) (29,941) (16,608)
Exchanged into associated Funds:
Class A .................................. (56,582) (34,105) (144,008) (192,205) (700,147) (722,628)
Class D .................................. (657) -- (1,335) (10,109) (17,262) (108,292)
---------- -------- -------- ---------- ---------- ----------
Total ......................................... (1,155,892) (738,899) (937,911) (1,111,717) (2,279,945) (2,748,309)
---------- -------- -------- ---------- ---------- ----------
Decrease in shares ............................ (612,939) (150,206) (128,613) (327,431) (564,335) (1,084,529)
========== ======== ======== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
MICHIGAN SERIES MINNESOTA SERIES MISSOURI SERIES
---------------------------- ----------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
---------------------------- ----------------------- -------------------------
1996 1995 1996 1995 1996 1995
------------- ---------- ---------- -------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A .................................. 590,794 757,584 662,567 544,854 336,439 199,885
Class D .................................. 75,571 69,200 45,645 111,851 45,866 28,871
Shares issued in payment of dividends:
Class A .................................. 577,449 607,709 622,155 681,571 170,657 187,773
Class D .................................. 5,165 3,659 9,641 8,190 2,059 1,688
Exchanged from associated Funds:
Class A .................................. 261,523 104,833 63,682 186,606 11,737 49,003
Class D .................................. 24,587 12,331 6,252 20,768 5,683 --
Shares issued in payment of gain distributions:
Class A .................................. 222,433 75,509 34,629 26,068 40,153 46,811
Class D .................................. 2,476 425 597 310 342 458
---------- ----------- ----------- ----------- ---------- ----------
Total ......................................... 1,759,998 1,631,250 1,445,168 1,580,218 612,936 514,489
---------- ----------- ----------- ----------- ---------- ----------
Shares repurchased:
Class A .................................. (1,562,041) (1,759,378) (1,744,913) (1,640,906) (626,785) (829,527)
Class D .................................. (43,655) (22,079) (65,660) (35,960) (40,183) (9,384)
Exchanged into associated Funds:
Class A .................................. (314,340) (293,434) (183,451) (308,844) (102,871) (108,014)
Class D .................................. (25,575) (7,254) (17,466) (32,624) (7,345) (2,017)
---------- ----------- ---------- ----------- ---------- ----------
Total ......................................... (1,945,611) (2,082,145) (2,011,490) (2,018,334) (777,184) (948,942)
---------- ----------- ---------- ----------- ---------- ----------
Decrease in shares ............................ (185,613) (450,895) (566,322) (438,116) (164,248) (434,453)
========== =========== ========== ========== ========== ==========
</TABLE>
51
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK SERIES OHIO SERIES OREGON SERIES
------------------------ ----------------------- ------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
------------------------ ----------------------- ------------------------
1996 1995 1996 1995 1996 1995
---------- ---------- ---------- --------- --------- -------
<S> <C> <C> <C> <C> <C> <C>
SALE OF SHARES:
Class A .................................... 420,183 759,986 556,577 607,544 449,036 491,549
Class D .................................... 51,905 20,328 42,516 35,134 53,330 119,881
Shares issued in payment of dividends:
Class A .................................... 311,826 346,619 676,616 742,966 250,740 263,145
Class D .................................... 3,961 2,790 4,228 2,142 6,750 5,200
Exchanged from associated Funds:
Class A .................................... 396,166 307,438 115,979 100,205 72,458 117,527
Class D .................................... 22,805 46,880 522 3,512 2,730 --
Shares issued in payment of gain distributions:
Class A .................................... -- 233,284 73,144 166,200 6,052 15,449
Class D .................................... -- 1,417 399 476 175 287
---------- ---------- ---------- ---------- ---------- ----------
Total ......................................... 1,206,846 1,718,742 1,469,981 1,658,179 841,271 1,013,038
---------- ---------- ---------- ---------- ---------- ----------
Shares repurchased:
Class A .................................... (1,161,173) (2,115,969) (1,993,888) (2,013,198) (932,734) (827,019)
Class D .................................... (31,991) (20,029) (2,985) (1,314) (39,953) (27,866)
Exchanged into associated Funds:
Class A .................................... (273,410) (706,020) (354,919) (340,747) (122,134) (344,772)
Class D .................................... (14,800) (980) (1,268) -- (16,869) (15,720)
---------- ---------- ---------- ---------- ---------- ----------
Total ......................................... (1,481,374) (2,842,998) (2,353,060) (2,355,259) (1,111,690) (1,215,377)
---------- ---------- ---------- ---------- ---------- ----------
Decrease in shares ............................ (274,528) (1,124,256) (883,079) (697,080) (270,419) (202,339)
========== ========== ========== ========== ========== ==========
</TABLE>
SOUTH CAROLINA SERIES
----------------------------
YEAR ENDED
SEPTEMBER 30,
----------------------------
1996 1995
----------- ----------
Sale of shares:
Class A ................................... 909,638 1,022,961
Class D ................................... 179,334 56,814
Shares issued in payment of dividends:
Class A ................................... 412,361 444,222
Class D ................................... 10,618 7,314
Exchanged from associated Funds:
Class A ................................... 104,833 173,490
Class D ................................... -- 12,150
Shares issued in payment of gain distributions:
Class A ................................... 24,100 22,923
Class D ................................... 607 351
---------- ----------
Total .......................................... 1,641,491 1,740,225
---------- ----------
Shares repurchased:
Class A ................................... (1,840,951) (2,310,043)
Class D ................................... (65,796) (46,819)
Exchanged into associated Funds:
Class A ................................... (308,319) (376,197)
Class D ................................... (2,110) (10,186)
---------- ----------
Total .......................................... (2,217,176) (2,743,245)
---------- ----------
Decrease in shares ............................. (575,685) (1,003,020)
========== ==========
52
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The Fund's financial highlights are presented below. The per share operating
performance data is designed to allow investors to trace the operating
performance, on a per share basis, from a Class' beginning net asset value to
the ending net asset value so that they may understand what effect the
individual items have on their investment assuming it was held throughout the
period. Generally, the per share amounts are derived by converting the actual
dollar amounts incurred for each item as disclosed in the financial statements
to their equivalent per share amounts, based on average shares outstanding.
The total return based on net asset value measures each Class' performance
assuming investors purchased shares at net asset value as of the beginning of
the period, reinvested dividends and capital gains paid at net asset value, and
then sold their shares at the net asset value per share on the last day of the
period. The total return computations do not reflect any sales charges investors
may incur in purchasing or selling shares of each Series. The total returns for
periods of less than one year are not annualized.
<TABLE>
<CAPTION>
NATIONAL SERIES CLASS A
------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
------------------------------------------------
<S> <C> <C> <C> <C> <C>
PERFORMANCE: 1996 1995 1994 1993 1992
---- ---- ---- ---- ----
Net asset value, beginning of period.................... $7.58 $7.18 $8.72 $8.07 $7.90
--------- --------- --------- --------- ---------
Net investment income................................... 0.40 0.40 0.41 0.45 0.48
Net realized and unrealized gain (loss)................. 0.12 0.40 (1.04) 0.78 0.20
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.52 0.80 (0.63) 1.23 0.68
Dividends paid or declared.............................. (0.40) (0.40) (0.41) (0.45) (0.48)
Distributions from net gain realized.................... -- -- (0.50) (0.13) (0.03)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. 0.12 0.40 (1.54) 0.65 0.17
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $7.70 $7.58 $7.18 $8.72 $8.07
========= ========= ========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 6.97% 11.48% (7.83)% 16.00% 8.84%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 0.80% 0.86% 0.85% 0.86% 0.77%
Net investment income to average net assets............. 5.19% 5.46% 5.30% 5.49% 6.02%
Portfolio turnover...................................... 33.99% 24.91% 24.86% 72.68% 63.99%
Net assets, end of period (000s omitted)................ $98,767 $104,184 $111,374 $136,394 $132,130
</TABLE>
<TABLE>
<CAPTION>
CLASS D
-------------------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
<S> <C> <C> <C>
1996 1995 9/30/94
---- ---- -------
Net asset value, beginning of period.................... $7.57 $7.18 $8.20
--------- --------- ---------
Net investment income................................... 0.33 0.32 0.22
Net realized and unrealized gain (loss)................. 0.13 0.39 (1.02)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.46 0.71 (0.80)
Dividends paid or declared.............................. (0.33) (0.32) (0.22)
Distributions from net gain realized.................... -- -- --
--------- --------- ---------
Net increase (decrease) in net asset value.............. 0.13 0.39 (1.02)
--------- --------- ---------
Net asset value, end of period.......................... $7.70 $7.57 $7.18
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 6.13% 10.17% (9.96)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.67% 1.95% 1.76%+
Net investment income to average net assets............. 4.27% 4.40% 4.37%+
Portfolio turnover...................................... 33.99% 24.91% 24.86%++
Net assets, end of period (000s omitted)................ $4,826 $1,215 $446
</TABLE>
- ----------
See footnotes on page 59.
53
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLORADO SERIES
CLASS A
------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $7.30 $7.09 $7.76 $7.34 $7.22
--------- --------- --------- --------- ---------
Net investment income................................... 0.37 0.38 0.37 0.39 0.42
Net realized and unrealized gain (loss)................. (0.03) 0.21 (0.59) 0.49 0.12
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.34 0.59 (0.22) 0.88 0.54
Dividends paid or declared.............................. (0.37) (0.38) (0.37) (0.39) (0.42)
Distributions from net gain realized.................... -- -- (0.08) (0.07) --
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. (0.03) 0.21 (0.67) 0.42 0.12
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $7.27 $7.30 $7.09 $7.76 $7.34
========= ========= ========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 4.76% 8.56% (2.92)% 12.54% 7.74%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 0.85% 0.93% 0.86% 0.90% 0.81%
Net investment income to average net assets............. 5.07% 5.31% 5.06% 5.21% 5.81%
Portfolio turnover...................................... 12.39% 14.70% 10.07% 14.09% 23.22%
Net assets, end of period (000s omitted)................ $52,295 $54,858 $58,197 $67,912 $64,900
</TABLE>
<TABLE>
<CAPTION>
COLORADO SERIES CLASS D
-----------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
----------------
PERFORMANCE: 1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $7.29 $7.09 $7.72
--------- --------- ---------
Net investment income................................... 0.31 0.30 0.20
Net realized and unrealized gain (loss)................. (0.02) 0.20 (0.63)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.29 0.50 (0.43)
Dividends paid or declared.............................. (0.31) (0.30) (0.20)
Distributions from net gain realized.................... -- -- --
--------- --------- ---------
Net increase (decrease) in net asset value.............. (0.02) 0.20 (0.63)
--------- --------- ---------
Net asset value, end of period.......................... $7.27 $7.29 $7.09
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 3.95% 7.26% (5.73)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.75% 2.02% 1.78%+
Net investment income to average net assets............. 4.17% 4.23% 4.05%+
Portfolio turnover...................................... 12.39% 14.70% 10.07%++
Net assets, end of period (000s omitted)................ $255 $193 $96
</TABLE>
<TABLE>
<CAPTION>
GEORGIA SERIES CLASS A
PER SHARE OPERATING ------------------------------------------------
PERFORMANCE
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
<S> <C> <C> <C> <C> <C>
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
Net asset value, beginning of period.................... $7.81 $7.48 $8.43 $7.85 $7.63
--------- --------- --------- --------- ---------
Net investment income*.................................. 0.39 0.39 0.41 0.43 0.46
Net realized and unrealized gain (loss)................. 0.11 0.43 (0.86) 0.62 0.25
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.50 0.82 (0.45) 1.05 0.71
Dividends paid or declared.............................. (0.39) (0.39) (0.41) (0.43) (0.46)
Distributions from net gain realized.................... (0.05) (0.10) (0.09) (0.04) (0.03)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. 0.06 0.33 (0.95) 0.58 0.22
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $7.87 $7.81 $7.48 $8.43 $7.85
========= ========= ========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 6.56% 11.66% (5.52)% 13.96% 9.64%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets*......................... 0.83% 0.91% 0.73% 0.63% 0.47%
Net investment income to average net assets*............ 4.94% 5.26% 5.21% 5.34% 5.95%
Portfolio turnover...................................... 16.24% 3.36% 19.34% 12.45% 10.24%
Net assets, end of period (000s omitted)................ $50,995 $57,678 $61,466 $64,650 $44,585
Without management fee waiver and expense
reimbursement:*
Net investment income per share......................... $0.39 $0.40 $0.40 $0.43
Ratios:
Expenses to average net assets.......................... 0.96% 0.93% 0.93% 0.87%
Net investment income to average net assets............. 5.21% 5.01% 5.04% 5.55%
</TABLE>
<TABLE>
<CAPTION>
GEORGIA SERIES CLASS D
PER SHARE OPERATING -----------------------------
PERFORMANCE YEAR ENDED 2/1/94**
SEPTEMBER 30, TO
----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $7.82 $7.49 $8.33
--------- --------- ---------
Net investment income*.................................. 0.32 0.32 0.22
Net realized and unrealized gain (loss)................. 0.11 0.43 (0.84)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.43 0.75 (0.62)
Dividends paid or declared.............................. (0.32) (0.32) (0.22)
Distributions from net gain realized.................... (0.05) (0.10) --
--------- --------- ---------
Net increase (decrease) in net asset value.............. 0.06 0.33 (0.84)
--------- --------- ---------
Net asset value, end of period.......................... $7.88 $7.82 $7.49
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 5.60% 10.58% (7.57)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets*......................... 1.73% 1.90% 1.76%+
Net investment income to average net assets*............ 4.03% 4.28% 4.28%+
Portfolio turnover...................................... 16.24% 3.36% 19.34%++
Net assets, end of period (000s omitted)................ $2,327 $2,079 $849
Without management fee waiver and expense
reimbursement:*
Net investment income per share......................... $0.31 $0.21
Ratios:
Expenses to average net assets.......................... 1.95% 1.90%+
Net investment income to average net assets............. 4.23% 4.15%+
</TABLE>
- ----------
See footnotes on page 59.
54
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------
LOUISIANA SERIES
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
PERFORMANCE: 1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $8.14 $7.94 $8.79 $8.38 $8.18
--------- --------- --------- --------- ---------
Net investment income................................... 0.42 0.43 0.44 0.46 0.49
Net realized and unrealized gain (loss)................. 0.08 0.34 (0.77) 0.51 0.24
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.50 0.77 (0.33) 0.97 0.73
Dividends paid or declared.............................. (0.42) (0.43) (0.44) (0.46) (0.49
Distributions from net gain realized.................... (0.06) (0.14) (0.08) (0.10) (0.04
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. 0.02 0.20 (0.85) 0.41 0.20
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $8.16 $8.14 $7.94 $8.79 $8.38
========= ========= ========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 6.32% 10.30% (3.83)% 12.10% 9.13%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 0.82% 0.89% 0.87% 0.87% 0.80%
Net investment income to average net assets............. 5.15% 5.44% 5.31% 5.40% 5.89%
Portfolio turnover...................................... 10.08% 4.82% 17.16% 9.21% 25.45%
Net assets, end of period (000s omitted)................ $57,264 $61,988 $61,441 $67,529 $57,931
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $8.14 $7.94 $8.73
--------- --------- ---------
Net investment income................................... 0.35 0.35 0.24
Net realized and unrealized gain (loss)................. 0.08 0.34 (0.79)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.43 0.69 (0.55)
Dividends paid or declared.............................. (0.35) (0.35) (0.24)
Distributions from net gain realized.................... (0.06) (0.14) --
--------- --------- ---------
Net increase (decrease) in net asset value.............. 0.02 0.20 (0.79)
--------- --------- ---------
Net asset value, end of period.......................... $8.16 $8.14 $7.94
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 5.37% 9.17% (6.45)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.72% 1.91% 1.78%+
Net investment income to average net assets............. 4.25% 4.41% 4.33%+
Portfolio turnover...................................... 10.08% 4.82% 17.16%++
Net assets, end of period (000s omitted)................ $389 $465 $704
</TABLE>
<TABLE>
<CAPTION>
MARYLAND SERIES CLASS A
------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $7.96 $7.71 $8.64 $8.15 $7.94
--------- --------- --------- --------- ---------
Net investment income................................... 0.40 0.41 0.42 0.44 0.46
Net realized and unrealized gain (loss)................. 0.06 0.38 (0.76) 0.59 0.24
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.46 0.79 (0.34) 1.03 0.70
Dividends paid or declared.............................. (0.40) (0.41) (0.42) (0.44) (0.46)
Distributions from net gain realized.................... (0.03) (0.13) (0.17) (0.10) (0.03)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. 0.03 0.25 (0.93) 0.49 0.21
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $7.99 $7.96 $7.71 $8.64 $8.15
========= ========= ========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 6.00% 10.90% (4.08)% 13.23% 9.15%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 0.84% 0.96% 0.92% 0.97% 0.86%
Net investment income to average net assets............. 5.05% 5.31% 5.17% 5.28% 5.76%
Portfolio turnover...................................... 5.56% 3.63% 17.68% 14.10% 29.57%
Net assets, end of period (000s omitted)................ $54,041 $56,290 $57,263 $64,472 $57,208
</TABLE>
<TABLE>
<CAPTION>
MARYLAND SERIES CLASS D
-----------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $7.97 $7.72 $8.46
--------- --------- ---------
Net investment income................................... 0.33 0.33 0.23
Net realized and unrealized gain (loss)................. 0.05 0.38 (0.74)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.38 0.71 (0.51)
Dividends paid or declared.............................. (0.33) (0.33) (0.23)
Distributions from net gain realized.................... (0.03) (0.13) --
--------- --------- ---------
Net increase (decrease) in net asset value.............. 0.02 0.25 (0.74)
--------- --------- ---------
Net asset value, end of period.......................... $7.99 $7.97 $7.72
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 4.91% 9.75% (6.21)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.72% 2.02% 1.80%+
Net investment income to average net assets............. 4.14% 4.27% 4.26%+
Portfolio turnover...................................... 5.56% 3.63% 17.68%++
Net assets, end of period (000s omitted)................ $2,047 $630 $424
</TABLE>
55
- ----------
See footnotes on page 59.
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MASSACHUSETTS SERIES CLASS A
------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $7.91 $7.66 $8.54 $8.06 $7.86
--------- --------- --------- --------- ---------
Net investment income................................... 0.41 0.42 0.44 0.47 0.49
Net realized and unrealized gain (loss)................. 0.05 0.28 (0.67) 0.55 0.24
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.46 0.70 (0.23) 1.02 0.73
Dividends paid or declared.............................. (0.41) (0.42) (0.44) (0.47) (0.49)
Distributions from net gain realized.................... (0.11) (0.03) (0.21) (0.07) (0.04)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. (0.06) 0.25 (0.88) 0.48 0.20
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $7.85 $7.91 $7.66 $8.54 $8.06
========= ========= ========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 5.97% 9.58% (2.94)% 13.18% 9.75%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 0.80% 0.86% 0.85% 0.88% 0.77%
Net investment income to average net assets............. 5.24% 5.51% 5.46% 5.65% 6.27%
Portfolio turnover...................................... 26.30% 16.68% 12.44% 20.66% 27.92%
Net assets, end of period (000s omitted)................ $109,872 $115,711 $120,149 $139,504 $128,334
</TABLE>
<TABLE>
<CAPTION>
MASSACHUSETTS SERIES CLASS D
------------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $7.90 $7.66 $8.33
--------- --------- ---------
Net investment income................................... 0.34 0.34 0.24
Net realized and unrealized gain (loss)................. 0.05 0.27 (0.67)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.39 0.61 (0.43)
Dividends paid or declared.............................. (0.34) (0.34) (0.24)
Distributions from net gain realized.................... (0.11) (0.03) --
--------- --------- ---------
Net increase (decrease) in net asset value.............. (0.06) 0.24 (0.67)
--------- --------- ---------
Net asset value, end of period.......................... $7.84 $7.90 $7.66
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 5.01% 8.33% (5.34)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.70% 1.95% 1.78%+
Net investment income to average net assets............. 4.32% 4.47% 4.52%+
Portfolio turnover...................................... 26.30% 16.68% 12.44%++
Net assets, end of period (000s omitted)................ $1,405 $809 $1,099
</TABLE>
<TABLE>
<CAPTION>
MICHIGAN SERIES CLASS A
------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $8.54 $8.28 $9.08 $8.68 $8.38
--------- --------- --------- --------- ---------
Net investment income................................... 0.45 0.46 0.46 0.47 0.50
Net realized and unrealized gain (loss)................. 0.06 0.30 (0.71) 0.59 0.35
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.51 0.76 (0.25) 1.06 0.85
Dividends paid or declared.............................. (0.45) (0.46) (0.46) (0.47) (0.50)
Distributions from net gain realized.................... (0.14) (0.04) (0.09) (0.19) (0.05)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. (0.08) 0.26 (0.80) 0.40 0.30
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $8.46 $8.54 $8.28 $9.08 $8.68
========= ========= ========= ===== =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 6.16% 9.56% (2.90)% 12.97% 10.55%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 0.78% 0.87% 0.84% 0.83% 0.76%
Net investment income to average net assets............. 5.29% 5.50% 5.32% 5.41% 5.93%
Portfolio turnover...................................... 19.62% 20.48% 10.06% 6.33% 32.12%
Net assets, end of period (000s omitted)................ $148,178 $151,589 $151,095 $164,638 $144,524
</TABLE>
<TABLE>
<CAPTION>
MICHIGAN SERIES CLASS D
------------------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $8.54 $8.28 $9.01
--------- --------- ---------
Net investment income................................... 0.37 0.37 0.25
Net realized and unrealized gain (loss)................. 0.05 0.30 (0.73)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.42 0.67 (0.48)
Dividends paid or declared.............................. (0.37) (0.37) (0.25)
Distributions from net gain realized.................... (0.14) (0.04) --
--------- --------- ---------
Net increase (decrease) in net asset value.............. (0.09) 0.26 (0.73)
--------- --------- ---------
Net asset value, end of period.......................... $8.45 $8.54 $8.28
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 5.09% 8.36% (5.47)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.68% 2.01% 1.75%+
Net investment income to average net assets............. 4.39% 4.40% 4.40%+
Portfolio turnover...................................... 19.62% 20.48% 10.06%++
Net assets, end of period (000s omitted)................ $1,486 $1,172 $671
</TABLE>
- ----------
See footnotes on page 59.
56
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA SERIES CLASS A
--------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: --------------------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $7.82 $7.72 $8.28 $7.89 $7.81
--------- --------- --------- --------- ---------
Net investment income................................... 0.42 0.45 0.45 0.47 0.49
Net realized and unrealized gain (loss)................. (0.12) 0.11 (0.44) 0.51 0.09
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.30 0.56 0.01 0.98 0.58
Dividends paid or declared.............................. (0.42) (0.45) (0.45) (0.47) (0.49)
Distributions from net gain realized.................... (0.02) (0.01) (0.12) (0.12) (0.01)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. (0.14) 0.10 (0.56) 0.39 0.08
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $7.68 $7.82 $7.72 $8.28 $7.89
========= ========= ========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 3.99% 7.61% 0.12% 13.06% 7.71%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 0.81% 0.87% 0.85% 0.90% 0.80%
Net investment income to average net assets............. 5.47% 5.89% 5.70% 5.89% 6.29%
Portfolio turnover...................................... 26.89% 5.57% 3.30% 5.73% 12.08%
Net assets, end of period (000s omitted)................ $126,173 $132,716 $134,990 $144,600 $151,922
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA SERIES CLASS D
-----------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
----------------
PERFORMANCE: 1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $7.82 $7.73 $8.22
--------- --------- ---------
Net investment income................................... 0.35 0.38 0.25
Net realized and unrealized gain (loss)................. (0.12) 0.10 (0.49)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.23 0.48 (0.24)
Dividends paid or declared.............................. (0.35) (0.38) (0.25)
Distributions from net gain realized.................... (0.02) (0.01) --
--------- --------- ---------
Net increase (decrease) in net asset value.............. (0.14) 0.09 (0.49)
--------- --------- ---------
Net asset value, end of period.......................... $7.68 $7.82 $7.73
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 3.06% 6.45% (3.08)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.71% 1.85% 1.74%+
Net investment income to average net assets............. 4.57% 4.92% 4.68%+
Portfolio turnover...................................... 26.89% 5.57% 3.30%++
Net assets, end of period (000s omitted)................ $2,036 $2,237 $1,649
</TABLE>
<TABLE>
<CAPTION>
MISSOURI SERIES CLASS A
-------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: -------------------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $7.70 $7.41 $8.31 $7.80 $7.72
--------- --------- --------- --------- ---------
Net investment income*.................................. 0.39 0.40 0.40 0.42 0.44
Net realized and unrealized gain (loss)................. 0.08 0.36 (0.79) 0.57 0.15
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.47 0.76 (0.39) 0.99 0.59
Dividends paid or declared.............................. (0.39) (0.40) (0.40) (0.42) (0.44)
Distributions from net gain realized.................... (0.07) (0.07) (0.11) (0.06) (0.07)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. 0.01 0.29 (0.90) 0.51 0.08
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $7.71 $7.70 $7.41 $8.31 $7.80
========= ========= ========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 6.27% 10.67% (4.85)% 13.17% 7.87%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets*......................... 0.86% 0.88% 0.74% 0.71% 0.83%
Net investment income to average net assets*............ 5.03% 5.31% 5.18% 5.29% 5.71%
Portfolio turnover...................................... 8.04% 3.88% 14.33% 17.03% 18.80%
Net assets, end of period (000s omitted)................ $49,941 $51,169 $52,621 $56,861 $49,459
Without management fee waiver and expense
reimbursement:*
Net investment income per share......................... $0.39 $0.39 $0.41
Ratios:
Expenses to average net assets.......................... 0.93% 0.88% 0.91%
Net investment income to average net assets............. 5.26% 5.04% 5.09%
</TABLE>
<TABLE>
<CAPTION>
MISSOURI SERIES CLASS D
-------------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $7.70 $7.41 $8.20
--------- --------- ---------
Net investment income*.................................. 0.32 0.32 0.22
Net realized and unrealized gain (loss)................. 0.09 0.36 (0.79)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.41 0.68 (0.57)
Dividends paid or declared.............................. (0.32) (0.32) (0.22)
Distributions from net gain realized.................... (0.07) (0.07) --
--------- --------- ---------
Net increase (decrease) in net asset value.............. 0.02 0.29 (0.79)
--------- --------- ---------
Net asset value, end of period.......................... $7.72 $7.70 $7.41
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 5.46% 9.49% (7.16)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets*......................... 1.76% 1.98% 1.70%+
Net investment income to average net assets*............ 4.13% 4.23% 4.27%+
Portfolio turnover...................................... 8.04% 3.88% 14.33%++
Net assets, end of period (000s omitted)................ $565 $515 $350
Without management fee waiver and expense
reimbursement:*
Net investment income per share......................... $0.32 $0.22
Ratios:
Expenses to average net assets.......................... 2.03% 1.80%+
Net investment income to average net assets............. 4.18% 4.17%+
</TABLE>
57
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK SERIES CLASS A
---------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ---------------------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $7.86 $7.67 $8.75 $8.13 $7.94
--------- --------- --------- --------- ---------
Net investment income................................... 0.42 0.42 0.43 0.45 0.49
Net realized and unrealized gain (loss)................. 0.12 0.36 (0.88) 0.74 0.26
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.54 0.78 (0.45) 1.19 0.75
Dividends paid or declared.............................. (0.42) (0.42) (0.43) (0.45) (0.49)
Distributions from net gain realized.................... -- (0.17) (0.20) (0.12) (0.07)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. 0.12 0.19 (1.08) 0.62 0.19
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $7.98 $7.86 $7.67 $8.75 $8.13
========= ========= ========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 6.97% 10.93% (5.37)% 15.26% 9.80%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 0.77% 0.88% 0.87% 0.94% 0.79%
Net investment income to average net assets............. 5.24% 5.52% 5.31% 5.37% 6.09%
Portfolio turnover...................................... 25.88% 34.05% 28.19% 27.90% 42.90%
Net assets, end of period (000s omitted)................ $82,719 $83,980 $90,914 $104,685 $92,681
</TABLE>
<TABLE>
<CAPTION>
NEW YORK SERIES CLASS D
------------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $7.87 $7.67 $8.55
--------- --------- ---------
Net investment income................................... 0.34 0.34 0.23
Net realized and unrealized gain (loss)................. 0.11 0.37 (0.88)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.45 0.71 (0.65)
Dividends paid or declared.............................. (0.34) (0.34) (0.23)
Distributions from net gain realized.................... -- (0.17) --
--------- --------- ---------
Net increase (decrease) in net asset value.............. 0.11 0.20 (0.88)
--------- --------- ---------
Net asset value, end of period.......................... $7.98 $7.87 $7.67
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 5.86% 9.87% (7.73)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.68% 1.96% 1.81%+
Net investment income to average net assets............. 4.33% 4.42% 4.39%+
Portfolio turnover...................................... 25.88% 34.05% 28.19%++
Net assets, end of period (000s omitted)................ $1,152 $885 $476
</TABLE>
<TABLE>
<CAPTION>
OHIO SERIES CLASS A
------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $8.11 $7.90 $8.77 $8.28 $8.06
--------- --------- --------- --------- ---------
Net investment income................................... 0.43 0.44 0.44 0.46 0.49
Net realized and unrealized gain (loss)................. 0.02 0.28 (0.70) 0.56 0.26
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.45 0.72 (0.26) 1.02 0.75
Dividends paid or declared.............................. (0.43) (0.44) (0.44) (0.46) (0.49)
Distributions from net gain realized.................... (0.04) (0.07) (0.17) (0.07) (0.04)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. (0.02) 0.21 (0.87) 0.49 0.22
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $8.09 $8.11 $7.90 $8.77 $8.28
========= ========= ========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 5.68% 9.59% (3.08)% 12.81% 9.68%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 0.77% 0.84% 0.84% 0.85% 0.75%
Net investment income to average net assets............. 5.32% 5.56% 5.34% 5.44% 6.02%
Portfolio turnover...................................... 12.90% 2.96% 9.37% 30.68% 7.15%
Net assets, end of period (000s omitted)................ $162,243 $170,191 $171,469 $190,083 $170,427
</TABLE>
<TABLE>
<CAPTION>
OHIO SERIES CLASS D
-----------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $8.15 $7.92 $8.61
--------- --------- ---------
Net investment income................................... 0.36 0.36 0.24
Net realized and unrealized gain (loss)................. 0.02 0.30 (0.69)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.38 0.66 (0.45)
Dividends paid or declared.............................. (0.36) (0.36) (0.24)
Distributions from net gain realized.................... (0.04) (0.07) --
--------- --------- ---------
Net increase (decrease) in net asset value.............. (0.02) 0.23 (0.69)
--------- --------- ---------
Net asset value, end of period.......................... $8.13 $8.15 $7.92
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 4.74% 8.67% (5.36)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.67% 1.93% 1.78%+
Net investment income to average net assets............. 4.42% 4.48% 4.41%+
Portfolio turnover...................................... 12.90% 2.96% 9.37%++
Net assets, end of period (000s omitted)................ $1,011 $660 $324
</TABLE>
- ----------
See footnotes on page 59.
58
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OREGON SERIES CLASS A
------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $7.66 $7.43 $8.08 $7.60 $7.42
--------- --------- --------- --------- ---------
Net investment income*.................................. 0.40 0.40 0.40 0.42 0.42
Net realized and unrealized gain (loss)................. -- 0.25 (0.59) 0.48 0.18
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.40 0.65 (0.19) 0.90 0.60
Dividends paid or declared.............................. (0.40) (0.40) (0.40) (0.42) (0.42)
Distributions from net gain realized.................... (0.01) (0.02) (0.06) -- --
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. (0.01) 0.23 (0.65) 0.48 0.18
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $7.65 $7.66 $7.43 $8.08 $7.60
========= ========= ========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 5.27% 9.05% (2.38)% 12.21% 8.35%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets*......................... 0.86% 0.86% 0.78% 0.78% 0.68%
Net investment income to average net assets*............ 5.18% 5.40% 5.20% 5.35% 5.63%
Portfolio turnover...................................... 28.65% 2.47% 9.43% 8.08% 0.21%
Net assets, end of period (000s omitted)................ $57,345 $59,549 $59,884 $62,095 $48,797
Without management fee waiver and
expense reimbursement:*
Net investment income per share......................... $0.40 $0.39 $0.41 $0.42
Ratios:
Expenses to average net assets........................ 0.91% 0.89% 0.93% 0.83%
Net investment income to average net assets........... 5.35% 5.09% 5.20% 5.48%
</TABLE>
<TABLE>
<CAPTION>
OREGON SERIES CLASS D
-----------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $7.65 $7.43 $8.02
--------- --------- ---------
Net investment income*.................................. 0.33 0.33 0.22
Net realized and unrealized gain (loss)................. -- 0.24 (0.59)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.33 0.57 (0.37)
Dividends paid or declared.............................. (0.33) (0.33) (0.22)
Distributions from net gain realized.................... (0.01) (0.02) --
--------- --------- ---------
Net increase (decrease) in net asset value.............. (0.01) 0.22 (0.59)
--------- --------- ---------
Net asset value, end of period.......................... $7.64 $7.65 $7.43
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: 4.33% 7.86% (4.76)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets*......................... 1.76% 1.83% 1.72%+
Net investment income to average net assets*............ 4.28% 4.41% 4.32%+
Portfolio turnover...................................... 28.65% 2.47% 9.43%++
Net assets, end of period (000s omitted)................ $1,540 $1,495 $843
Without management fee waiver and
expense reimbursement:*
Net investment income per share......................... $0.33 $0.22
Ratios:
Expenses to average net assets........................ 1.88% 1.82%+
Net investment income to average net assets........... 4.36% 4.22%+
</TABLE>
<TABLE>
<CAPTION>
SOUTH CAROLINA SERIES CLASS A
-------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: -------------------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $7.97 $7.61 $8.52 $8.00 $7.71
--------- --------- --------- --------- ---------
Net investment income................................... 0.41 0.41 0.41 0.43 0.45
Net realized and unrealized gain (loss)................. 0.12 0.37 (0.79) 0.54 0.31
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations.......... 0.53 0.78 (0.38) 0.97 0.76
Dividends paid or declared.............................. (0.41) (0.41) (0.41) (0.43) (0.45)
Distributions from net gain realized.................... (0.02) (0.01) (0.12) (0.02) (0.02)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value.............. 0.10 0.36 (0.91) 0.52 0.29
--------- --------- --------- --------- ---------
Net asset value, end of period.......................... $8.07 $7.97 $7.61 $8.52 $8.00
========= ========= ========= ========= =========
TOTAL RETURN BASED ON
NET ASSET VALUE: 6.82% 10.69% (4.61)% 12.52% 10.08%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 0.80% 0.88% 0.83% 0.85% 0.81%
Net investment income to average net assets............. 5.15% 5.38% 5.12% 5.19% 5.71%
Portfolio turnover...................................... 20.66% 4.13% 1.81% 17.69% 3.37%
Net assets, end of period (000s omitted)................ $108,163 $112,421 $115,133 $120,589 $82,882
</TABLE>
<TABLE>
<CAPTION>
SOUTH CAROLINA SERIES CLASS D
-----------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period.................... $7.97 $7.61 $8.42
--------- --------- ---------
Net investment income................................... 0.34 0.34 0.22
Net realized and unrealized gain (loss)................. 0.11 0.37 (0.81)
--------- --------- ---------
Increase (decrease) from investment operations.......... 0.45 0.71 (0.59)
Dividends paid or declared.............................. (0.34) (0.34) (0.22)
Distributions from net gain realized.................... (0.02) (0.01) --
--------- --------- ---------
Net increase (decrease) in net asset value.............. 0.09 0.36 (0.81)
--------- --------- ---------
Net asset value, end of period.......................... $8.06 $7.97 $7.61
========= ========= =========
TOTAL RETURN BASED ON
NET ASSET VALUE: 5.73% 9.63% (7.14)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.70% 1.85% 1.74%+
Net investment income to average net assets............. 4.25% 4.40% 4.29%+
Portfolio turnover...................................... 20.66% 4.13% 1.81%++
Net assets, end of period (000s omitted)................ $2,714 $1,704 $1,478
</TABLE>
- ----------
* During the periods stated, the Manager at its discretion, waived all or
portions of its fees for the Georgia, Missouri, and Oregon Series.
** Commencement of offering of Class D shares.
+ Annualized
++ For the year ended September 30, 1994.
See Notes to Financial Statements.
59
<PAGE>
================================================================================
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
SELIGMAN MUNICIPAL FUND SERIES, INC.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of the National, Colorado, Georgia, Louisiana,
Maryland, Massachusetts, Michigan, Minnesota, Missouri, New York, Ohio, Oregon
and South Carolina Series of Seligman Municipal Fund Series, Inc. (formerly
Seligman Tax-Exempt Fund Series, Inc.) as of September 30, 1996, the related
statements of operations for the year then ended and of changes in net assets
for each of the years in the two-year period then ended, and the financial
highlights for each of the periods presented. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1996 by correspondence with the Fund's custodian and brokers;
where replies were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each Series of
Seligman Municipal Fund Series, Inc. as of September 30, 1996, the results of
their operations, the changes in their net assets, and the financial highlights
for the respective stated periods, in conformity with generally accepted
accounting principles.
/s/DELOITTE & TOUCHE LLP
New York, New York
October 30, 1996
60
<PAGE>
================================================================================
PROXY RESULTS
- --------------------------------------------------------------------------------
Seligman Municipal Fund Series, Inc. Shareholders voted on the following
proposals at the Special Meeting of Shareholders held on September 30, 1996, in
New York, NY. Each Director was elected, and all other proposals were approved.
The description of each proposal and number of shares voted are as follows:
ELECTION OF DIRECTORS:
FOR WITHHELD
--- ---------
Fred E. Brown 85,846,451 2,140,661
John R. Galvin 85,851,675 2,135,437
Alice S. Ilchman 85,818,039 2,169,073
Frank A. McPherson 85,831,415 2,155,697
John E. Merow 85,937,945 2,049,167
Betsy S. Michel 85,974,898 2,012,214
William C. Morris 85,968,753 2,018,359
James C. Pitney 85,895,550 2,091,562
James Q. Riordan 85,913,398 2,073,714
Ronald T. Schroeder 85,962,440 2,024,672
Robert L. Shafer 85,878,304 2,108,808
James N. Whitson 85,947,104 2,040,008
Brian T. Zino 85,976,353 2,010,759
RATIFICATION OF DELOITTE & TOUCHE LLP AS INDEPENDENT AUDITORS:
FOR AGAINST ABSTAIN NON-VOTE
- --- ------- ------- ---------
83,599,827 570,927 3,816,358 n/a
APPROVAL TO PERMIT ANY PORTION OF INVESTMENTS IN SECURITIES SUBJECT TO THE
FEDERAL ALTERNATIVE MINIMUM TAX:
SERIES FOR AGAINST ABSTAIN NON-VOTE
- --------------- --------- ------- --------- -------
National 6,660,927 419,838 577,103 171,544
Colorado 3,015,391 283,717 415,886 152,733
Georgia 3,947,344 188,085 337,558 103,516
Louisiana 3,581,306 507,762 312,014 104,266
Maryland 3,310,346 367,134 282,861 117,675
Massachusetts 6,572,489 614,584 533,388 586,521
Michigan 7,889,523 718,166 1,005,536 570,903
Minnesota 6,885,355 753,334 741,214 310,607
Missouri 2,980,511 300,450 204,955 54,336
New York 4,635,959 432,369 364,351 347,030
Ohio 9,844,272 878,590 870,677 623,238
Oregon 3,956,882 448,353 537,848 132,156
South Carolina 8,145,526 425,295 634,086 131,602
61
<PAGE>
================================================================================
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
FRED E. BROWN
DIRECTOR AND CONSULTANT,
J. & W. Seligman & Co. Incorporated
JOHN R. GALVIN 2
DEAN, Fletcher School of Law
and Diplomacy at Tufts University
DIRECTOR, USLIFE Corporation
ALICE S. ILCHMAN 3
PRESIDENT, Sarah Lawrence College
TRUSTEE, Committee for Economic Development
DIRECTOR, NYNEX
CHAIRMAN, The Rockefeller Foundation
FRANK A. MCPHERSON 2
CHAIRMAN AND CEO, Kerr-McGee Corporation
DIRECTOR, Kimberly-Clark Corporation
DIRECTOR, Baptist Medical Center
JOHN E. MEROW
PARTNER, Sullivan & Cromwell, Law Firm
DIRECTOR, Commonwealth Aluminum Corporation
BETSY S. MICHEL 2
DIRECTOR OR TRUSTEE, Various Organizations
WILLIAM C. MORRIS 1
CHAIRMAN
CHAIRMAN OF THE BOARD AND PRESIDENT,
J. & W. Seligman & Co. Incorporated
CHAIRMAN, Carbo Ceramics Inc.
DIRECTOR, Kerr-McGee Corporation
JAMES C. PITNEY 3
PARTNER, Pitney, Hardin, Kipp & Szuch, Law Firm
DIRECTOR, Public Service Enterprise Group
JAMES Q. RIORDAN 3
DIRECTOR, The Brooklyn Union Gas Company
TRUSTEE, Committee for Economic Development
DIRECTOR, Dow Jones & Co., Inc.
DIRECTOR, Public Broadcasting Service
RONALD T. SCHROEDER 1
MANAGING DIRECTOR,
J. & W. Seligman & Co. Incorporated
ROBERT L. SHAFER 3
DIRECTOR OR TRUSTEE,
Various Organizations
JAMES N. WHITSON 2
EXECUTIVE VICE PRESIDENT AND DIRECTOR,
Sammons Enterprises, Inc.
DIRECTOR, C-SPAN
DIRECTOR, Red Man Pipe and Supply Company
BRIAN T. ZINO 1
PRESIDENT
MANAGING DIRECTOR, J. & W. Seligman & Co. Incorporated
CHAIRMAN, Seligman Data Corp.
- ----------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
62
<PAGE>
================================================================================
EXECUTIVE OFFICERS
- --------------------------------------------------------------------------------
WILLIAM C. MORRIS
CHAIRMAN
BRIAN T. ZINO
PRESIDENT
THOMAS G. MOLES
VICE PRESIDENT
LAWRENCE P. VOGEL
VICE PRESIDENT
THOMAS G. ROSE
TREASURER
FRANK J. NASTA
SECRETARY
- --------------------------------------------------------------------------------
MANAGER
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
GENERAL COUNSEL
Sullivan & Cromwell
INDEPENDENT AUDITORS
Deloitte & Touche LLP
GENERAL DISTRIBUTOR
Seligman Financial Services, Inc.
100 Park Avenue
New York, NY 10017
SHAREHOLDER SERVICE AGENT
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
IMPORTANT TELEPHONE NUMBERS
(800) 221-2450 SHAREHOLDER
SERVICES
(800) 622-4597 24-HOUR AUTOMATED TELEPHONE ACCESS SERVICE
