================================================================================
TO THE SHAREHOLDERS
--------------------------------------------------------------------------------
We are pleased to update you on the National and 12 state-specific portfolios of
Seligman Tax-Exempt Fund Series at their mid-year, March 31, 1996.
Your Fund's total net assets stood at $1,198,479,138 at March 31, compared to
$1,226,464,083 at September 30, 1995. Dividends and gains paid to shareholders
during the six months totaled $39,068,205.
The Federal Reserve Board began lowering the federal funds rate -- the
interest rate charged for interbank loans -- in July 1995, in response to a
slowdown in the rate of economic growth and a stable rate of inflation. This
less restrictive monetary policy encouraged the continuation of the decline in
long-term interest rates through 1995 and into 1996. During the middle of the
first quarter of 1996, however, the economy began to exhibit signs of strength.
Up to this point, the municipal bond market was rallying in anticipation of an
additional Fed easing of short-term interest rates. The realization that a
continued lowering of the federal funds rate was no longer imminent caused
long-term interest rates to spike sharply.
Overall, municipal market psychology has been improving since the end of
1995. Tax reform legislation appears to have faded as an issue in the
presidential race, thereby easing the concerns that overshadowed the municipal
market in 1995. This, together with the higher yields available, has stimulated
demand. While new issue supply has slowed recently due to market conditions,
total first-quarter volume was 35% higher compared to last year's first quarter.
In your Fund, your Manager views the current interest rate environment as an
opportunity to purchase long-term municipal bonds at levels not seen since
September 1995. While we believe that the increase in municipal yields is
temporary, the market may remain unsettled until participants are convinced that
the economy is not re-accelerating. Therefore, new purchases have been
concentrated in current coupon bonds, which are generally less volatile than
discount or zero coupon bonds during periods of uncertainty.
Going forward, we believe the most likely outcome for 1996 is continued
moderate economic growth. However, in the event that the economy exceeds its
non-inflationary potential, we are confident that the Fed will act swiftly to
prevent the economy from growing at an unsustainable rate.
For any additional information about Seligman Tax-Exempt Fund Series, or your
investment in its shares, please write or call using the toll-free telephone
numbers listed on page 47.
By order of the Board of Directors,
/S/ William C. Morris
-------------------
William C. Morris
Chairman
/s/ Brian T. Zino
----------------
Brian T. Zino
President
May 3, 1996
1
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================
SELIGMAN TAX-EXEMPT FUND SERIES, INC.
--------------------------------------------------------------------------------------------------------------------
HIGHLIGHTS March 31, 1996
--------------------------------------------------------------------------------------------------------------------
NATIONAL COLORADO GEORGIA LOUISIANA MARYLAND MASSACHUSETTS
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS (in millions)
Class A $104.3 $52.7 $54.7 $58.9 $54.7 $110.8
Class D 1.5 0.3 2.7 0.4 1.1 1.2
--------------------------------------------------------------------------------------------------------------------
YIELD*
Class A 4.84% 4.40% 4.53% 4.51% 4.47% 4.54%
Class D 4.16 3.71 3.84 3.83 3.78 3.86
--------------------------------------------------------------------------------------------------------------------
DIVIDENDS**
Class A $0.199 $0.185 $0.191 $0.212 $0.201 $0.205
Class D 0.163 0.152 0.155 0.175 0.164 0.169
--------------------------------------------------------------------------------------------------------------------
CAPITAL GAIN DISTRIBUTIONS** -- -- $0.054 $0.062 $0.034 $0.107
--------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL
RETURN
Class A
One Year
With sales charge(1) 3.39% 0.88% 3.20% 2.94% 2.24% 1.55%
Without sales charge(2) 8.54 5.90 8.36 8.09 7.36 6.63
Five Years
With sales charge(1) 6.34 5.56 6.48 6.24 6.37 6.58
Without sales charge(2) 7.37 6.58 7.52 7.29 7.40 7.62
TEN YEARS OR SINCE INCEPTION 5/1/86 6/15/87
With sales charge(1) 7.05 6.16% 7.17% 7.05 6.59 6.84
Without sales charge(2) 7.58 6.69 7.77 7.57 7.11 7.36
Class D
One Year
With CDSL(1) 6.30 3.82 6.35 6.17 5.30 4.56
Without CDSL(2) 7.30 4.82 7.35 7.17 6.30 5.56
Since inception February 1, 1994(2) 1.02 1.40 2.12 2.31 2.31 2.13
--------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A $7.65 $7.29 $7.79 $8.14 $7.93 $7.79
Class D 7.64 7.28 7.80 8.14 7.94 7.79
--------------------------------------------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE
PER SHARE
Class A $8.03 $7.65 $8.18 $8.55 $8.33 $8.18
Class D 7.64 7.28 7.80 8.14 7.94 7.79
--------------------------------------------------------------------------------------------------------------------
MOODY'S/S&P RATINGS
Aaa/AAA 22% 50% 47% 86% 41% 52%
Aa/AA 62 28 28 6 37 16
A/A 11 17 20 6 20 24
Baa/BBB 3 3 5 2 2 8
Non-rated 2 2 -- -- -- --
--------------------------------------------------------------------------------------------------------------------
HOLDINGS BY MARKET SECTOR
Revenue Bonds 81% 79% 67% 80% 63% 78%
General Obligation Bonds 19 21 33 20 37 22
--------------------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE MATURITY
(years) 25.9 19.1 20.8 19.0 20.0 20.9
--------------------------------------------------------------------------------------------------------------------
* Current yield representing the annualized yield for the 30-day period ended
March 31, 1996.
** Represents per share amount paid or declared with respect to Class A and
Class D shares during the six months ended March 31, 1996.
(1) Represents the average compound rate of return per year over the specified
period, and reflects changes in price and assumes all distributions within
the period are reinvested in additional shares; also reflects the effect of
the 4.75% maximum initial sales charge or contingent deferred sales load
("CDSL") of 1%, if applicable. No adjustment was made to Class A shares'
performance for periods prior to January 1, 1993, the commence-ment date for
the annual Administration, Shareholder Services and Distribution Plan fee of
up to 0.25% of average daily net assets of each Series.
</TABLE>
2
<PAGE>
================================================================================
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MINNESOTA MISSOURI NEW YORK OHIO OREGON SOUTH CAROLINA
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSETS (in millions)
Class A $149.6 $128.9 $50.0 $82.1 $165.1 $ 58.7 $110.8
Class D 1.5 2.2 0.7 0.9 1.0 1.5 2.3
----------------------------------------------------------------------------------------------------------------------------------
YIELD*
Class A 4.61% 4.11% 4.36% 4.80% 4.39% 4.42% 4.44%
Class D 3.93 3.41 3.65 4.11 3.70 3.74 3.75
----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS**
Class A $0.224 $0.217 $0.195 $0.207 $0.218 $0.200 $0.207
Class D 0.185 0.181 0.159 0.170 0.182 0.164 0.170
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL GAIN DISTRIBUTIONS** $0.143 $0.020 $0.073 -- $0.038 $0.008 $0.018
----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL
RETURN
Class A
One Year
With sales charge(1) 1.81% (0.17)% 1.74% 3.12% 1.41% 1.15% 2.51%
Without sales charge(2) 6.88 4.84 6.85 8.20 6.48 6.24 7.62
Five Years
With sales charge(1) 6.65 5.81 5.96 7.10 6.32 5.88 6.33
Without sales charge(2) 7.71 6.83 6.99 8.15 7.36 6.91 7.35
TEN YEARS OR SINCE INCEPTION 7/1/86 10/15/86 6/30/87
With sales charge(1) 7.17 6.44 6.86% 7.03 7.04 6.34% 7.19%
Without sales charge(2) 7.69 6.96 7.40 7.56 7.56 6.89 7.79
Class D
One Year
With CDSL(1) 4.76 2.88 4.91 6.24 4.69 4.12 5.48
Without CDSL(2) 5.76 3.86 5.91 7.24 5.69 5.12 6.48
Since inception February 1, 1994(2) 2.13 1.81 1.78 1.97 2.14 1.98 1.96
----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A $8.41 $7.68 $7.63 $7.92 $8.04 $7.61 $7.99
Class D 8.40 7.68 7.64 7.93 8.08 7.60 7.98
----------------------------------------------------------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE
PER SHARE
Class A $8.83 $8.06 $8.01 $8.31 $8.44 $7.99 $8.39
Class D 8.40 7.68 7.64 7.93 8.08 7.60 7.98
----------------------------------------------------------------------------------------------------------------------------------
MOODY'S/S&P RATINGS
Aaa/AAA 56% 43% 42% 57% 67% 35% 65%
Aa/AA 18 32 41 11 14 21 15
A/A 22 21 17 17 10 28 18
Baa/BBB -- -- -- 15 4 5 2
Non-rated 4 4 -- -- 5 11 --
----------------------------------------------------------------------------------------------------------------------------------
HOLDINGS BY MARKET SECTOR
Revenue Bonds 77% 50% 87% 95% 67% 63% 77%
General Obligation Bonds 23 50 13 5 33 37 23
----------------------------------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE MATURITY
(years) 20.0 15.9 18.3 25.7 17.4 17.3 18.1
----------------------------------------------------------------------------------------------------------------------------------
(2) Represents the rate of return as above, but does not reflect the effect of
the 4.75% maximum initial sales charge or 1% CDSL.
+ Percentages based on current market values of long-term holdings. 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.
</TABLE>
3
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL SERIES
FACE RATINGS MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
----- ------ --------------- ----------- -----
<S> <C> <C> <C> <C>
ALABAMA--2.0% $2,000,000 Tuscaloosa G.O. Warrants, 6 3/4% due 7/1/2020 ........................ Aaa/AAA $ 2,133,880
ALASKA--4.4% 5,000,000 Valdez Marine Terminal Rev. (BP Pipeline Inc. Project),
5 1/2% due 10/1/2028 ............................................... Aa3/AA- 4,610,900
ARIZONA--2.5% 3,000,000 Phoenix Civic Improvement Corporation (New City Hall Project),
5.10% due 7/1/2028 ................................................. Aa/AA+ 2,682,930
CALIFORNIA--4.8% 2,500,000 Rancho Water District Financing Authority Rev.,
5.90% due 11/1/2015 ................................................ Aaa/AAA 2,482,650
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 2,564,375
FLORIDA--4.5% 2,750,000 Jacksonville Electric Authority (Electric System Rev.),
5 1/4% due 10/1/2028 .............................................. Aa1/AA 2,463,725
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 2,248,325
ILLINOIS--14.3% 2,000,000 Chicago O'Hare International Airport Rev., 6 3/8% due 1/1/2012 ....... Aaa/AAA 2,112,160
1,000,000 Illinois Health Facilities Authority Rev. (Northwestern Memorial
Hospital), 6.10% due 8/15/2014 .................................... Aa/AA 1,006,790
1,250,000 Illinois Health Facilities Authority Rev. (Edward Hospital Project),
6% due 2/15/2019 .................................................. A/A 1,201,850
2,500,000 Illinois Health Facilities Authority Rev. (Northwestern Memorial
Hospital), 6% due 8/15/2024 ....................................... Aa/AA 2,469,575
3,000,000 Metropolitan Water Reclamation District of Greater Chicago
G.O.'s Capital Improvement Bonds, 7% due 1/1/2011 ................. Aa/AA 3,463,650
5,000,000 Regional Transportation Authority G.O.'s (Cook, DuPage, Kane,
Lake, McHenry, and Will Counties), 5.85% due 6/1/2023 ............. Aaa/AAA 4,873,450
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 2,075,313
MASSACHUSETTS 2,000,000 Massachusetts Health &Education Facilities Authority Rev.
--2.0% (Amherst College), 6.80% due 11/1/2021.............................. Aa1/AA+ 2,170,180
MICHIGAN--2.1% 2,250,000 Michigan State Strategic Fund Pollution Control Rev.
(General Motors Corp.), 6.20% due 9/1/2020 ......................... A3/A- 2,256,255
MISSOURI--4.6% 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- 4,891,350
NEW YORK--3.5% 3,500,000 New York City G.O.'s, 7 1/4% due 8/15/2024 ........................... Baa1/BBB+ 3,691,660
NORTH DAKOTA 2,000,000 Mercer County Pollution Control Rev. (Otter Tail Power Company
--2.0% Project), 6.90% due 2/1/2019 ....................................... Aa3/AA- 2,123,980
OKLAHOMA--4.3% 5,000,000 Oklahoma Industrial Authority Health Facilities Rev. (Sisters
of Mercy Health System, St. Louis, Inc.), 5% due 6/1/2013 .......... Aa/AA 4,517,900
SOUTH 2,000,000 Oconee County Pollution Control Rev. (Duke Power Company
CAROLINA--4.9% Project), 7 1/2% due 2/1/2017....................................... Aa2/AA- 2,174,120
3,000,000 South CarolinAaa/AAAc Service Authority Rev., 5 7/8% due 1/1/2023 .... Aaa/AAA 2,965,770
SOUTH DAKOTA 6,000,000 South Dakota Housing Development Authority Rev.
--5.6% (Homeownership Mortgage), 6.15% due 5/1/2026*....................... Aa1/AAA 5,910,660
TENNESSEE--2.9% 3,000,000 Metropolitan Government of Nashville & Davidson County G.O.'s,
6.15% due 5/15/2025 ................................................ Aa/AA 3,076,800
------------------
* 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.
4
</TABLE>
<PAGE>
================================================================================
March 31, 1996
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL SERIES (continued)
FACE RATINGS MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
----- ------ --------------- ----------- -----
<S> <C> <C> <C> <C>
TEXAS--20.2% $3,000,000 Brazos River Authority Pollution Control Rev. (Houston Light &
Power Company Project), 7 7/8% due 11/1/2018* ...................... A2/A $ 3,098,160
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 3,934,025
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 2,162,740
5,500,000 San Antonio Electric & Gas Rev., 5% due 2/1/2017 ..................... Aa1/AA 4,946,865
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 2,161,880
2,840,000 Texas Veterans' Housing Assistance G.O.'s, 6.80% due 12/1/2023* ...... Aa/AA 2,910,375
2,000,000 Travis County Housing Finance Corporation (Single Family
Mortgage Rev.), 6.95% due 10/1/2027 ................................ NR/AAA 2,100,460
UTAH--6.0% 7,000,000 Intermountain Power Agency Power Supply Rev.,
5 1/4% due 7/1/2017 ................................................ Aa/AA- 6,381,200
VIRGINIA--4.7% 5,000,000 Fairfax County Industrial Development Authority Health Care
Rev. (Inova Health System Project), 6% due 8/15/2026 ............... Aa/AA 4,975,000
WASHINGTON
--4.0% 4,000,000 Seattle Metropolitan Sewer Rev., 6.60% due 1/1/2032 .................. Aaa/AAA 4,257,160
------------
Total Municipal Bonds (Cost $105,572,038)--101.3%.................................................................. 107,096,113
Other Assets Less Liabilities--(1.3)%.............................................................................. (1,337,856)
------------
NET ASSETS--100.0%................................................................................................. $105,758,257
============
</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 $3,033,360
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 1,660,470
3,000,000 Colorado Health Facilities Authority Rev. (Sisters of Charity Health Care Systems, Inc.),
6% due 5/15/2013 ....................................................................... Aaa/AAA 3,030,000
1,220,000 Colorado Health Facilities Authority Rev. (Mercy Medical Center of Durango Project),
6.20% due 11/15/2015 ................................................................... A1/AA- 1,223,928
3,000,000 Colorado Health Facilities Authority Rev. (North Colorado Medical Center),
6% due 5/15/2020 ....................................................................... Aaa/AAA 3,037,590
380,000 Colorado Housing Finance Authority Rev., 7 1/4% due 9/1/2006 ............................. NR/A 390,640
605,000 Colorado Housing Finance Authority (Single Family Housing Rev.), 7 1/4% due 11/1/2010 .... Aa/AA+ 606,652
2,085,000 Colorado Housing Finance Authority (Single Family Housing Rev.), 5.85% due 11/1/2015 ..... Aa/AA+ 2,075,242
305,000 Colorado Housing Finance Authority (Single Family Residential Housing Rev.),
8% due 3/1/2017 ........................................................................ Aa/NR 313,909
------------------
* 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.
5
</TABLE>
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLORADO SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$2,000,000 Colorado Springs, CO Utilities Rev., 5 7/8% due 11/15/2017 ............................... Aaa/AAA $2,004,220
3,500,000 Colorado Springs, CO Utilities Rev., 6 1/8% due 11/15/2020 ............................... Aa/AA 3,546,200
1,000,000 Colorado Water Resources & Power Development Authority (Clean Water Bonds),
6 7/8% due 9/1/2011 .................................................................... Aa/AA+ 1,090,220
2,000,000 Colorado Water Resources & Power Development Authority (Clean Water Bonds),
6% due 9/1/2014 ........................................................................ Aa/AA 2,032,900
1,000,000 Colorado Water Resources & Power Development Authority (Clean Water Rev.),
6.30% due 9/1/2014 ..................................................................... Aa/AA 1,045,760
2,000,000 Denver, CO City & County (St. Anthony Hospital Systems Rev.), 7 3/4% due 5/1/2014 ........ Aaa/AAA 2,215,020
2,500,000 Denver, CO City & County (Sisters of Charity of Leavenworth Health Services
Corporation), 5% due 12/1/2023 ......................................................... Aa/NR 2,188,600
2,250,000 Denver, CO City & County Excise Tax Rev., 6 1/2% due 9/1/2014 ............................ Aaa/AAA 2,341,215
1,985,000 Fort Collins, CO G.O.'s Water Bonds, 6 3/8% due 12/1/2012 ................................ Aa/AA 2,100,229
3,000,000 Fountain Valley Authority, CO Water Treatment Rev., 6.80% due 12/1/2019 .................. A1/AA 3,213,570
1,480,000 Metropolitan Denver, CO Sewer Disposal District No. 001, 6 3/4% due 4/1/2012 ............. A1/AA 1,518,791
2,000,000 Northgate Public Building Authority, CO (Landowner Assessment Lien),
8 1/4% due 12/1/2001** ................................................................. NR/NR 900,000
1,895,000 Northglenn, CO Joint Water & Wastewater Utility, 6.80% due 12/1/2008 ..................... Aaa/NR 1,941,693
2,500,000 Platte River Power Authority, CO Power Rev., 6 1/8% due 6/1/2014 ......................... Aa/A+ 2,550,425
2,000,000 Pueblo County, CO Single Family Mortgage Rev., 7.05% due 11/1/2027 ....................... NR/AAA 2,094,020
2,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 .......... Baa1/A 1,840,100
3,000,000 University of Colorado Hospital Authority Hospital Rev., 6.40% due 11/15/2022 ............ Aaa/AAA 3,114,390
2,000,000 Westminster, CO (Adams & Jefferson Counties) Sales & Use Tax Rev., 7% due 12/1/2008 ...... Aaa/AAA 2,185,760
------------
Total Municipal Bonds (Cost $52,171,518)--100.6%................................................................... 53,294,904
Variable Rate Demand Notes (Cost $700,000)--1.3%................................................................... 700,000
Other Assets Less Liabilities--(1.9)%.............................................................................. (1,023,556)
------------
NET ASSETS--100.0%................................................................................................. $ 52,971,348
============
GEORGIA SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
$1,095,000 Augusta, GA Water & Sewer Rev., 6 1/2% due 5/1/2011 ...................................... A/NR $1,166,832
1,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 7.40% due 11/1/2010* ................................................. A1/AA- 1,184,390
2,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 6 3/4% due 2/1/2012* ................................................. A1/AA- 2,150,040
3,000,000 Chatham County GA School District G.O.'s, 5 1/2% due 8/1/2020 ............................ Aaa/AAA 2,849,070
750,000 Chatham County Hospital Authority, GA Rev. (Memorial Medical Center, Inc.),
7% due 1/1/2021 ........................................................................ Aaa/AAA 821,227
2,000,000 Columbia County, GA School District G.O.'s, 6 1/4% due 4/1/2013 .......................... Aaa/AAA 2,081,460
1,000,000 Columbia County, GA Water & Sewerage Rev., 6 1/4% due 6/1/2012 ........................... Aaa/AAA 1,048,690
------------------
* 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.
6
</TABLE>
<PAGE>
================================================================================
March 31, 1996
--------------------------------------------------------------------------------
<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 G.O.'s, 5 1/4% due 1/1/2020 ............................................ Aa1/AA+ $ 922,210
4,000,000 DeKalb County, GA Water & Sewerage Rev., 5 3/4% due 10/1/2006 ............................ Aaa/AAA 4,113,040
1,000,000 DeKalb County, GA Water & Sewerage Rev., 7% due 10/1/2014 ...................... Aaa/AA 1,119,470
2,000,000 DeKalb County, GA Water & Sewerage Rev., 5 1/4% due 10/1/2023 ............................ Aa/AA 1,829,220
700,000 DeKalb Private Hospital Authority, GA Rev. (Emory University Project),
6 3/4% due 4/1/2017 .................................................................... Aa1/AA 727,237
300,000 DeKalb Private Hospital Authority, GA Rev. (Emory University Project), 7% due 4/1/2021 ... Aa1/AA 315,903
1,000,000 Fayette County, GA School District G.O.'s, 6 1/8% due 3/1/2015 ........................... Aa/A+ 1,038,730
3,000,000 Fulton County, GA School District G.O.'s, 5 5/8% due 1/1/2021 ............................ Aa/AA 2,927,310
1,250,000 Gainesville, GA Water & Sewerage Rev., 5 1/4% due 11/15/2010 ............................. Aaa/AAA 1,227,400
2,975,000 Georgia Housing & Finance Authority Rev. (Single Family Mortgage),
5 1/4% due 12/1/2020 ................................................................... Aa/AA+ 2,689,340
3,000,000 Georgia Municipal Electric Authority Rev., 6% due 1/1/2026 ............................... Aaa/AAA 3,002,130
2,500,000 Georgia Municipal Gas Authority Rev. (Southern Storage Gas Project),
6.40% due 7/1/2014 ..................................................................... NR/A- 2,549,575
425,000 Georgia Residential Finance Authority Homeownership Mortgage Rev.,
7.20% due 12/1/2011* ................................................................... Aa/AA+ 442,434
1,000,000 Georgia State G.O.'s, 5 3/4% due 2/1/2011 ................................................. Aaa/AA+ 1,028,810
1,500,000 Gwinnett County, GA Hospital Authority Rev. Anticipation Certificates
(Gwinnett Hospital System, Inc. Project), 5% due 9/1/2019 .............................. Aaa/AAA 1,333,215
1,000,000 Gwinnett County, GA School District G.O.'s, 6.40% due 2/1/2012 ........................... Aa1/AA 1,093,140
735,000 Gwinnett County, GA Water & Sewerage Authority Rev., 6 1/2% due 8/1/2006 ................. Aa1/AA+ 739,888
1,500,000 Henry County School District, GA G.O.'s, 6.45% due 8/1/2011 .............................. A1/A+ 1,636,425
1,000,000 Metropolitan Atlanta Rapid Transit Authority, GA Sales Tax Rev., 7 1/4% due 7/1/2010 ..... A1/AA- 1,070,990
500,000 Metropolitan Atlanta Rapid Transit Authority, GA Sales Tax Rev., 6 1/4% due 7/1/2018 ..... A1/A+ 531,110
2,000,000 Monroe County, GA Development Authority Pollution Control Rev. (Georgia Power
Company Plant-- Scherer Project), 6% due 7/1/2025 ...................................... Aaa/AAA 2,020,520
2,500,000 Private Colleges & Universities Authority, GA (Spelman College Project),
6.20% due 6/1/2014 ..................................................................... Aaa/AAA 2,601,125
1,500,000 Private Colleges & Universities Authority, GA (Mercer University Project),
6 1/2% due 11/1/2015 ................................................................... Aaa/AAA 1,644,165
3,000,000 Private Colleges & Universities Authority, GA (Agnes Scott College Project),
5 5/8% due 6/1/2023 .................................................................... Aa/AA- 2,900,520
500,000 Private Colleges & Universities Authority, GA (Emory University Project),
6.40% due 10/1/2023 .................................................................... Aa1/AA 519,575
2,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2019 ......... Baa1/A 1,849,380
1,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 ......... Baa1/A 920,050
1,000,000 Putnam County, GA Development Authority Pollution Control Rev. (Georgia Power
Company Plant), 7 1/4% due 7/1/2021 .................................................... Aaa/AAA 1,027,920
2,000,000 Savannah, GA Airport Rev., 6 1/4% due 1/1/2015* .......................................... Aaa/AAA 2,035,380
------------
Total Municipal Bonds (Cost $56,149,211)--99.6%.................................................................... 57,157,921
Variable Rate Demand Notes (Cost $300,000)--0.5%................................................................... 300,000
Other Assets Less Liabilities--(0.1)%.............................................................................. (53,942)
------------
NET ASSETS--100.0%................................................................................................. $ 57,403,979
============
------------------
* 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.
</TABLE>
7
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS (continued)
--------------------------------------------------------------------------------
<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 $1,007,029
3,000,000 Bastrop, LA Industrial Development Board Pollution Control Rev. (International Paper
Company Project), 6.90% due 3/1/2007 ................................................... A3/A- 3,242,880
2,420,000 East Baton Rouge Parish, LA Mortgage Finance Authority (Single Family
Mortgage Rev.), 5.40% due 10/1/2025 .................................................... Aaa/NR 2,261,369
1,000,000 East Baton Rouge Parish, LA Public Improvement Sales & Use Tax Rev.,
7 1/4% due 2/1/2009 .................................................................... Aaa/AAA 1,075,390
3,000,000 East Baton Rouge Parish, LA Public Improvement Sales & Use Tax Rev.,
5.90% due 2/1/2018 ..................................................................... Aaa/AAA 2,977,890
3,500,000 East Baton Rouge Parish, LA Sales Tax Rev., 4.90% due 2/1/2016 ........................... Aaa/AAA 3,101,140
2,000,000 Houma, LA Utilities Rev., 6 1/4% due 1/1/2012 ............................................ Aaa/AAA 2,096,140
2,000,000 Jefferson Parish, LA Home Mortgage Authority (Single Family Mortgage Rev.),
6% due 12/1/2024* ...................................................................... Aa/NR 1,933,500
1,000,000 Jefferson Parish School Board, LA Sales Tax School Bonds, 6 1/4% due 2/1/2008 ............ Aaa/AAA 1,062,180
1,250,000 Lafayette, LA Public Improvement Sales Tax Rev., 5 1/2% due 3/1/2009 ..................... Aaa/AAA 1,251,688
3,000,000 Lafayette, LA Public Improvement Sales Tax Rev., 5.20% due 5/1/2011 ...................... Aaa/AAA 2,876,910
2,250,000 Louisiana Public Facilities Authority Hospital Rev. (General Health Inc.),
6 1/2% due 11/1/2014 ................................................................... Aaa/AAA 2,372,085
2,000,000 Louisiana Public Facilities Authority Hospital Rev. (Our Lady of Lourdes Regional
Medical Center Project), 6.45% due 2/1/2022 ............................................ Aaa/AAA 2,087,320
3,000,000 Louisiana Public Facilities Authority Hospital Rev. (General Health Inc.),
6% due 11/1/2022 ....................................................................... Aaa/AAA 3,005,790
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 2,769,175
1,900,000 Louisiana Public Facilities Authority Rev. (Sisters of Mercy Health System, St. Louis,
Inc.), 5% due 6/1/2019 ................................................................. Aa/AA 1,687,542
3,000,000 Louisiana Public Facilities Authority Rev. (Tulane University), 5 3/4% due 2/15/2021 ..... Aaa/AAA 2,922,390
4,000,000 Louisiana State G.O.'s, 6 1/2% due 5/1/2011 .............................................. Aaa/AAA 4,285,480
2,000,000 Louisiana State University & Agricultural & Mechanical College Auxiliary Rev.,
5 3/4% due 7/1/2014 .................................................................... Aaa/AAA 1,986,400
190,000 Ouachita Parish, LA Industrial Development Rev. (International Paper Company),
6 1/2% due 4/1/2006 .................................................................... NR/NR 189,240
500,000 Saint Bernard Parish, LA Water and Sewer Commission Water & Sewer Rev.,
8% due 8/1/2006 ........................................................................ Aaa/AAA 517,465
1,250,000 Saint Charles Parish, LA Environmental Improvement Rev. (Louisiana Power
and Light Company Project), 6.20% due 5/1/2023* ........................................ Baa2/BBB 1,197,663
2,960,000 Saint Charles Parish, LA Waterworks & Wastewater District Utility Rev.,
7.15% due 7/1/2016 ..................................................................... Aaa/AAA 3,287,583
1,555,000 Shreveport, LA G.O.'s, 7 1/2% due 4/1/2006 ............................................... Aaa/AAA 1,743,497
2,000,000 Shreveport, LA Water & Sewer Rev., 7 1/8% due 12/1/2014 .................................. Aaa/AAA 2,100,560
2,050,000 Sulphur, LA Housing & Mortgage Finance Trust (Residential Mortgage Rev.),
7 1/4% due 12/1/2010 ................................................................... Aaa/AAA 2,201,802
------------------
* 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.
</TABLE>
8
<PAGE>
================================================================================
March 31, 1996
--------------------------------------------------------------------------------
<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 $ 3,075,000
------------
Total Municipal Bonds (Cost $56,290,295)--98.4%.................................................................... 58,315,108
Other Assets Less Liabilities--1.6%................................................................................ 941,412
------------
NET ASSETS--100.0%................................................................................................. $ 59,256,520
============
MARYLAND SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
$3,000,000 Anne Arundel County, MD Pollution Control Rev. (Baltimore Gas and
Electric Company Project), 6% due 4/1/2024 ............................................. A2/A $3,003,330
2,000,000 Baltimore, MD Consolidated Public Improvement G.O.'s, 6 3/8% due 10/15/2006 .............. Aaa/AAA 2,226,660
2,500,000 Baltimore, MD Port Facilities Rev. (Consolidated Coal Sales Co. Project),
6 1/2% due 10/1/2011 ................................................................... Aa3/AA- 2,706,700
2,000,000 Frederick County, MD Public Facilities G.O.'s, 6.30% due 7/1/2011 ........................ Aaa/AA- 2,206,020
2,000,000 Howard County, MD Metropolitan District Project G.O.'s, 5 1/2% due 8/15/2022 ............. Aaa/AA+ 1,932,400
4,000,000 Maryland Capital Improvement G.O.'s, 5.20% due 4/15/2006 ................................. Aaa/AAA 4,072,120
1,000,000 Maryland Community Development Administration Dept. of Economic & Community
Development (Single Family Program), 7 3/4% due 4/1/2009 ............................... Aa/NR 1,032,830
2,000,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Multi-Family Housing), 7.70% due 5/15/2020* ............................... Aa/NR 2,142,680
2,500,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Single Family Program), 6.80% due 4/1/2024* ............................... Aa/NR 2,559,050
2,500,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Multi-Family Housing), 6.70% due 5/15/2027 ................................ Aa/NR 2,583,450
1,460,000 Maryland Health & Higher Educational Facilities Authority Rev. (Good Samaritan
Hospital), 5 3/4% due 7/1/2019 ......................................................... A1/A 1,407,309
3,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins
University), 7 1/2% due 7/1/2020 ....................................................... Aa1/AA- 3,238,890
2,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Suburban Hospital),
5 1/8% due 7/1/2021 .................................................................... A1/A 1,740,960
2,750,000 Maryland Health & Higher Educational Facilities Authority Rev. (Ann Arundel Medical
Center), 5% due 7/1/2023 ............................................................... Aaa/AAA 2,429,790
3,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Francis Scott Key
Medical Center), 5% due 7/1/2023 ....................................................... Aaa/AAA 2,650,680
1,000,000 Maryland National Capital Park & Planning Commission G.O.'s (Prince George's County),
6.90% due 7/1/2010 ..................................................................... Aa/AA 1,110,530
2,000,000 Maryland Transportation Authority Rev. (Baltimore/Washington International
Airport Project), 6 1/4% due 7/1/2014* ................................................. Aaa/AAA 2,049,980
3,000,000 Maryland Transportation Authority Rev. Transportation Facilities Projects, 5 3/4%
due 7/1/2015 ........................................................................... A1/A+ 2,955,090
1,000,000 Maryland Water Quality Financing Administration Revolving Loan Fund Rev.,
6.70% due 9/1/2013 ..................................................................... Aaa/AAA 1,117,400
------------------
* 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.
9
</TABLE>
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARYLAND SERIES (continued)
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 $ 1,136,420
2,500,000 Montgomery County, MD Consolidated Public Improvement G.O.'s,
4.90% due 10/1/2013 .................................................................... Aaa/AAA 2,296,900
455,000 Montgomery County, MD Housing Opportunities Commission (Single Family
Mortgage Rev.), 7 3/8% due 7/1/2017 .................................................... Aa/NR 481,809
2,000,000 Northeast Maryland Waste Disposal Authority Solid Waste Rev. (Montgomery County
Resource Recovery Project), 6.30% due 7/1/2016* ........................................ A/NR 2,008,100
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 .......... Baa1/A 920,050
55,000 Puerto Rico Housing Finance Corporation (Single Family Mortgage Rev. Portfolio 1),
7.80% due 10/15/2021 ................................................................... Aaa/AAA 58,101
650,000 Puerto Rico Housing Finance Corporation (Single Family Mortgage Rev. Portfolio 1-C),
6.85% due 10/15/2023 ................................................................... Aaa/AAA 674,700
1,500,000 University of Maryland Auxiliary Facilities and Tuition Rev., 6 1/2% due 4/1/2011 ........ NR/AAA 1,636,830
2,500,000 Washington Suburban Sanitary District, MD, 6 1/2% due 1/1/2016 ........................... Aa1/AA 2,674,875
------------
Total Municipal Bonds (Cost $53,101,736)--98.6%.................................................................... 55,053,654
Variable Rate Demand Notes (Cost $600,000)--1.1%................................................................... 600,000
Other Assets Less Liabilities--0.3%................................................................................ 151,588
------------
NET ASSETS--100.0%................................................................................................. $ 55,805,242
============
MASSACHUSETTS SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
$2,000,000 Boston, MA Water & Sewer Commission General Rev., 7 1/8% due 11/1/2009 ................... Aaa/AAA $2,218,860
5,000,000 Boston, MA Water & Sewer Commission General Rev., 5 1/4% due 11/1/2019 ................... A/A 4,679,100
3,000,000 Boston, MA Water & Sewer Commission General Rev., 7.10% due 11/1/2019 .................... Aaa/AAA 3,325,830
5,000,000 Massachusetts Bay Transportation Authority Transportation System Rev.,
6.10% due 3/1/2023 ..................................................................... A1/A+ 4,993,150
1,620,000 Massachusetts Education Loan Authority Education Loan Rev., 8% due 6/1/2002 .............. NR/AAA 1,663,562
3,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Daughters of Charity
National Health Systems--Carney Hospital), 6% due 7/1/2009 ............................. Aa/AA 3,061,860
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 2,526,300
2,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Lahey Clinic
Medical Center), 7 5/8% due 7/1/2018 ................................................... Aaa/AAA 2,732,275
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Newton-Wellesley
Hospital), 6% due 7/1/2018 ............................................................. Aaa/AAA 5,011,600
3,295,000 Massachusetts Health & Educational Facilities Authority Rev. (Tufts University),
7.40% due 8/1/2018 ..................................................................... Aaa/A+ 3,593,296
705,000 Massachusetts Health & Educational Facilities Authority Rev. (Tufts University),
7.40% due 8/1/2018 ..................................................................... A1/A+ 762,063
------------------
* 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.
</TABLE>
10
<PAGE>
================================================================================
March 31, 1996
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MASSACHUSETTS SERIES (continued)
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 $2,852,075
2,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Boston College),
6 5/8% due 7/1/2021 .................................................................... Aaa/AAA 2,147,480
1,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University),
6.35% due 7/1/2022 ..................................................................... NR/AAA 1,019,150
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Brigham & Women's
Hospital), 6 3/4% due 7/1/2024 ......................................................... A1/A+ 5,193,550
3,000,000 Massachusetts Health & Educational Facilities Authority Rev. (New England
Medical Center), 5 3/8% due 7/1/2024 ................................................... Aaa/AAA 2,772,780
1,000,000 Massachusetts Health & Educational Facilities Authority Rev. (New England
Medical Center), 6 5/8% due 7/1/2025 ................................................... Aaa/AAA 1,056,760
7,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Harvard
University), 5 5/8% due 11/1/2028 ...................................................... Aaa/AAA 7,329,825
1,600,000 Massachusetts Housing Finance Agency Rev. (Residential Development),
6 1/4% due 11/15/2012 .................................................................. Aaa/AAA 1,625,424
4,705,000 Massachusetts Housing Finance Agency Rev. (Single Family Housing),
7.30% due 6/1/2014 ..................................................................... Aa/A+ 4,844,644
3,195,000 Massachusetts Industrial Finance Agency Rev. (Phillips Academy), 5 3/8% due 9/1/2023 ..... Aa1/AA 3,013,716
755,000 Massachusetts Municipal Wholesale Electric Company Power Supply System Rev.,
6 3/4% due 7/1/2017 .................................................................... A/BBB+ 805,517
2,450,000 Massachusetts Special Obligation Rev. (Highway Improvement Loan), 6% due 6/1/2013 ........ A1/AA 2,481,213
2,500,000 Massachusetts Special Obligation Rev. (Highway Improvement Loan),
5.80% due 6/1/2014 ..................................................................... A1/AA- 2,496,975
10,000,000 Massachusetts State Consolidated Loan G.O.'s, 5 1/8% due 11/1/2013 ....................... Aaa/AAA 9,386,100
8,475,000 Massachusetts State Port Authority Rev., 7 1/8% due 7/1/2012 ............................. Aa/AA 8,578,819
5,500,000 Massachusetts State Water Resources Authority Rev., 6% due 8/1/2024 ...................... Aaa/AAA 5,528,930
5,000,000 Massachusetts Turnpike Authority Turnpike Rev., 5 1/8% due 1/1/2023 ...................... Aaa/AAA 4,481,350
730,000 Puerto Rico Electric Power Authority Power Rev., 7 1/8% due 7/1/2014 ..................... Baa1/A- 788,750
1,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2019 ......... Baa1/A 924,690
4,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 ......... Baa1/A 3,680,200
2,750,000 Puerto Rico Port Authority Rev., 6% due 7/1/2021* ........................................ Aaa/AAA 2,752,145
------------
Total Municipal Bonds (Cost $106,045,203)--96.7%................................................................... 108,327,989
------------
VARIABLE RATE DEMAND NOTES
--------------------------
1,000,000 New York City Municipal Water Finance Authority, NY Water &Sewer
System Rev. due 6/15/2025 .............................................................. VMIG-1/A-1+ 1,000,000
300,000 New York City, NY Series B G.O.'s due 8/15/2003 .......................................... VMIG-1/A-1+ 300,000
4,100,000 Person County, NCIndustrial Facility &Pollution Control Rev.
due 11/1/2016* ......................................................................... P-1/NR 4,100,000
400,000 Pinellas County, FLHealth Facility Authority Rev. due 12/1/2015 .......................... VMIG-1/A-1 400,000
------------
Total Variable Rate Demand Notes (Cost $5,800,000)--5.2%........................................................... 5,800,000
------------
Other Assets Less Liabilities--(1.9)%.............................................................................. (2,158,549)
------------
NET ASSETS--100.0%................................................................................................. $111,969,440
============
------------------
* 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.
</TABLE>
11
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MICHIGAN SERIES
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 $5,325,050
5,000,000 Clarkston Community Schools, MI G.O.'s, 5 3/4% due 5/1/2016 .............................. Aaa/AAA 4,964,400
5,000,000 Detroit, MI Distributable State Aid G.O.'s, 7.20% due 5/1/2009 ........................... Aaa/AAA 5,502,650
6,000,000 Detroit, MI Water Supply System Rev., 6 1/4% due 7/1/2012 ................................ Aaa/AAA 6,286,680
1,500,000 Eastern Michigan University Rev. (Board of Regents), 6 3/8% due 6/1/2014 ................. Aaa/AAA 1,570,485
3,000,000 Grand Haven, MI Electric System Rev., 5 1/4% due 7/1/2013 ................................ Aaa/AAA 2,821,290
7,000,000 Grand Rapids, MI Water Supply System Rev., 5 3/4% due 1/1/2018 ........................... Aaa/AAA 6,804,770
1,000,000 Grand Traverse County, MI Hospital Finance Authority (Munson Healthcare
Obligated Group), 6 1/4% due 7/1/2012 .................................................. Aaa/AAA 1,035,710
1,500,000 Grand Traverse County, MI Hospital Finance Authority (Munson Healthcare
Obligated Group), 6 1/4% due 7/1/2022 .................................................. Aaa/AAA 1,536,705
3,240,000 Holland School District, MI G.O.'s, 6 1/4% due 5/1/2007 .................................. Aaa/AAA 3,482,190
3,000,000 Holland School District, MI G.O.'s (School Building and Site Bonds), 7 3/8% due 5/1/2019 . NR/NR 3,217,170
3,000,000 Jackson County, MI Hospital Finance Authority Rev. (W.A. Foote Memorial Hospital),
7 1/4% due 6/1/2012 .................................................................... NR/NR 3,170,760
4,000,000 Jackson County, MI Hospital Finance Authority Rev. (W.A. Foote Memorial Hospital),
5 1/4% due 6/1/2023 .................................................................... Aaa/AAA 3,639,720
5,000,000 Kent County, MI Airport Rev., 6.10% due 1/1/2025* ........................................ Aa/AAA 5,003,350
1,250,000 Kent County, MI Building Authority G.O.'s (Correctional Facility Improvements),
6% due 12/1/2009 ....................................................................... Aa/AAA 1,296,975
5,000,000 Kent County, MI Refuse Disposal System G.O.'s, 8.40% due 11/1/2010 ....................... Aa/AAA 5,416,000
2,775,000 Kentwood, MI Public Schools Building & Site G.O.'s, 6.40% due 5/1/2015 ................... Aa/A+ 2,888,387
3,000,000 Lansing, MIBuilding Authority Rev., 5.60% due 6/1/2019 ................................... A1/AA+ 2,905,950
3,000,000 Michigan Municipal Bond Authority Rev. (Local Government Loan Program--Group 2),
7.30% due 5/1/2016 ..................................................................... NR/AAA 3,069,840
3,000,000 Michigan Public Power Agency Rev. (Belle River Project), 5 1/4% due 1/1/2018 ............. A1/AA- 2,752,170
2,500,000 Michigan State Building Authority Series II, 6% due 10/1/2009 ............................ Aaa/AAA 2,577,800
4,000,000 Michigan State Building Authority Rev., 6 1/4% due 10/1/2020 ............................. A1/AA- 4,088,760
1,750,000 Michigan State Comprehensive Transportation Rev., 7 5/8% due 5/1/2011 .................... A1/AA- 1,878,380
6,500,000 Michigan State G.O.'s (Environmental Protection Program), 5.40% due 11/1/2019 ............ Aa/AA 6,151,795
2,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Sparrow Obligated Group),
6 1/2% due 11/15/2011 .................................................................. Aaa/AAA 2,115,540
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (St. John Hospital),
5 3/4% due 5/15/2016 ................................................................... Aaa/AAA 4,837,650
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Henry Ford Health System),
5 3/4% due 9/1/2017 .................................................................... Aaa/AAA 4,826,750
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Detroit Medical Center),
6 1/2% due 8/15/2018 ................................................................... A/A 5,140,800
1,250,000 Michigan State Hospital Finance Authority Hospital Rev. (Crittenton Hospital),
6 3/4% due 3/1/2020 .................................................................... Aaa/AAA 1,324,587
1,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Daughters of Charity National
Health System--Providence Hospital), 7% due 11/1/2021 .................................. Aa/AA 1,070,550
2,000,000 Michigan State Hospital Finance Authority Hospital Rev. (St. John Hospital),
5 1/4% due 5/15/2026 ................................................................... Aaa/AAA 1,817,740
------------------
* 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.
</TABLE>
12
<PAGE>
================================================================================
March 31, 1996
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MICHIGAN SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$2,500,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.80% due 12/1/2016 .................................................................... NR/AA+ $2,572,425
5,000,000 Michigan State Housing Development Authority Rev. (Rental Housing),
6.65% due 4/1/2023 ..................................................................... NR/A+ 5,127,050
3,000,000 Michigan State Strategic Fund Pollution Control Rev. (Detroit Edison Company),
6 1/2% due 2/15/2016 ................................................................... Aaa/AAA 3,214,230
6,000,000 Michigan State Strategic Fund Pollution Control Rev. (General Motors Corp.),
6.20% due 9/1/2020 ..................................................................... A3/A- 6,016,680
7,500,000 Michigan State Trunk Line Rev., 5.80% due 11/15/2024 ..................................... Aaa/AAA 7,365,825
2,000,000 Midland, MI Water Supply System Rev., 7.20% due 4/1/2010 ................................. A/A 2,154,880
5,000,000 University of Michigan Hospital Rev., 6 3/8% due 12/1/2024 ............................... Aa/AA 5,103,400
5,000,000 Wayne, MI State University Rev., 5.65% due 11/15/2015 .................................... Aaa/AAA 4,923,900
3,000,000 Wyandotte, MI Electric Rev., 6 1/4% due 10/1/2017 ........................................ Aaa/AAA 3,079,500
------------
Total Municipal Bonds (Cost $142,790,952)--98.0%................................................................... 148,078,494
Variable Rate Demand Notes (Cost $700,000)--0.5%................................................................... 700,000
Other Assets Less Liabilities--1.5%................................................................................ 2,342,995
------------
NET ASSETS--100.0%................................................................................................. $151,121,489
============
MINNESOTA SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
$6,250,000 Becker, MN Pollution Control Rev. (Northern States Power Company),
6.80% due 4/1/2007 ..................................................................... A2/A+ $6,640,125
2,000,000 Breckenridge, MN Hospital Facility Rev. (Franciscan Sisters Health Care, Inc.),
9 3/8% due 9/1/2017 .................................................................... NR/NR 2,186,080
1,500,000 Buffalo, MNIndependent School District G.O.'s, 6.15% due 2/1/2022 ........................ Aaa/AAA 1,539,360
3,000,000 Dakota County, MN G.O.'s Capital Improvement, 7.30% due 2/1/2008 ......................... A1/NR 3,159,420
5,000,000 Edina, MN Housing Development Rev. (Edina Park Plaza Project), 7.70% due 12/1/2028 ....... Aa/NR 5,273,300
3,545,000 Fridley, MNIndependent School District G.O.'s, 5.35% due 2/1/2021 ........................ Aaa/AAA 3,353,960
2,000,000 Goodhue County, MN Hospital Facilities Rev. (St. John's Regional Health Center),
8 3/4% due 9/1/2016 .................................................................... NR/NR 2,176,260
1,200,000 Lakeville, MN Independent School District No. 194 G. O.'s, 6.70% due 2/1/2015 ............ Aaa/AAA 1,273,800
680,000 Lewiston, MN First Mortgage Nursing Home Rev. (Deloughery Home Project),
9.80% due 1/15/2013 .................................................................... NR/A- 743,961
7,500,000 Minneapolis, MN Community Development Agency Tax Increment Rev., Zero Coupon
Bond due 9/1/2003 ...................................................................... Aaa/AAA 5,190,900
5,500,000 Minneapolis, MN Community Development Agency Tax Increment Rev., Zero Coupon
Bond due 9/1/2004 ...................................................................... Aaa/AAA 3,592,875
1,400,000 Minneapolis-St. Paul Metropolitan Area (Metropolitan Council of the Twin Cities), MN,
5 1/2% due 12/1/2012 ................................................................... Aaa/AAA 1,389,332
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 4,755,450
------------------
* 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.
</TABLE>
13
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$5,500,000 Minneapolis, MN G.O.'s, 6 1/2% due 3/1/2013 .............................................. Aaa/AAA $5,700,750
1,500,000 Minneapolis, MNG.O.'s, 6% due 3/1/2016 ................................................... Aaa/AAA 1,522,050
2,000,000 Minneapolis, MN Hospital Facilities Rev. (Lifespan, Inc.--Abbott-Northwestern
Hospital, Inc.), 7 7/8% due 12/1/2014 ................................................... Aaa/AAA 2,167,900
1,500,000 Minneapolis, MN Tax Increment Rev., 7% due 3/1/2003 ....................................... Aaa/AAA 1,563,465
940,000 Minnesota Housing Finance Agency (Housing Development), 6 1/4% due 2/1/2020 . ............. Aa/AA 947,294
5,000,000 Minnesota Housing Finance Agency (Single Family Mortgage), 6.85% due 1/1/2024* ............ Aa/AA+ 5,145,100
5,500,000 Minnesota Public Facilities Authority Water Pollution Control Rev., 7.10% due 3/1/2012 .... Aa1/AAA 6,111,545
5,000,000 North St. Paul/Maplewood, MNIndependent School District G.O.'s, 5 1/8% due 2/1/2025 ....... Aa/AA 4,555,550
5,000,000 Northern Municipal Power Agency, MN Electric System Rev., 7 1/4% due 1/1/2016 ............. A/A 5,314,350
2,500,000 Northern Municipal Power Agency, MN Electric System Rev., 7.40% due 1/1/2018 .............. Aaa/AAA 2,746,350
2,500,000 Northfield, MNIndependent School District G.O.'s, 5 1/4% due 2/1/2017 ..................... Aa/NR 2,343,350
4,000,000 Plymouth, MNHealth Facilities Rev. (Westhealth Project), 6 1/8% due 6/1/2024 .............. Aaa/AAA 4,089,200
2,000,000 Ramsey & Washington Counties, MN Resource Recovery Rev. (Northern States Power
Company Project), 6 3/4% due 12/1/2006 .................................................. A1/AA- 2,108,720
4,000,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
7.45% due 11/15/2006 .................................................................... NR/AA+ 4,452,440
4,500,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
6 1/4% due 11/15/2014 ................................................................... NR/AA+ 4,694,490
1,000,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
6 1/4% due 11/15/2021 ................................................................... NR/AA+ 1,022,640
1,275,000 Saint Cloud, MN Hospital Facilities Rev. (Saint Cloud Hospital), 6 3/4% due 7/1/2011 ...... Aaa/AAA 1,424,188
1,000,000 Saint Cloud, MNHospital Facilities Rev. (Saint Cloud Hospital), 5% due 7/1/2020 ........... Aaa/AAA 895,250
2,000,000 Saint Cloud, MN Hydroelectric Generation Facility Gross Rev., 7 3/8% due 12/16/2018 ....... NR/A- 2,068,580
1,575,000 Saint Paul, MN Housing & Redevelopment Authority Healthcare Facility Rev
(Children's Hospital), 7% due 12/1/2019 ................................................. Aaa/AAA 1,743,714
283,450 Saint Paul, MN Science Museum Facilities Rev. (Science Museum of Minnesota Project),
7 1/2% due 12/15/2001 ................................................................... NR/AAA 301,314
45,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series E,
9 1/8% due 10/1/2000 .................................................................... NR/CCC 43,582
5,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series H,
9 1/8% due 12/1/2000 .................................................................... NR/CCC 4,837
55,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series I,
9 1/8% due 12/1/2000 .................................................................... NR/CCC 53,208
50,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series E,
9 1/8% due 10/1/2001 .................................................................... NR/CCC 47,656
10,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series H,
9 1/8% due 12/1/2001 .................................................................... NR/CCC 9,519
55,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series I,
9 1/8% due 12/1/2001 .................................................................... NR/CCC 52,355
5,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series L,
9 3/4% due 12/1/2001 .................................................................... NR/CCC 4,892
------------------
* 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.
</TABLE>
14
<PAGE>
================================================================================
March 31, 1996
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA SERIES (continued)
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 $ 46,794
10,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series H,
9 1/8% due 12/1/2002 ................................................................... NR/CCC 9,346
60,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series I,
9 1/8% due 12/1/2002 ................................................................... NR/CCC 56,075
10,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series L,
9 3/4% due 12/1/2002 ................................................................... NR/CCC 9,642
1,500,000 Southern Minnesota Municipal Power Agency--Power Supply System Rev.,
5 3/4% due 1/1/2018 .................................................................... A/A+ 1,456,380
750,000 Southern Minnesota Municipal Power Agency--Power Supply System Rev.,
5 3/4% due 1/1/2018 .................................................................... Aaa/AAA 760,192
1,500,000 Southern Minnesota Municipal Power Agency--Power Supply System Rev.,
4 3/4% due 1/1/2016 .................................................................... A/A+ 1,298,625
3,500,000 Washington County, MN G.O.'s, 5.90% due 2/1/2010 ......................................... Aa/AA- 3,579,310
3,000,000 Western Minnesota Municipal Power Agency--Power Supply Rev., 7% due 1/1/2013 ............. A1/A 3,112,830
3,090,000 Western Minnesota Municipal Power Agency--Power Supply Rev., 5 1/2% due 1/1/2015 ......... A1/A 2,950,579
9,580,000 Western Minnesota Municipal Power Agency--Power Supply Rev., 6 3/8% due 1/1/2016 ......... Aaa/AAA 10,236,901
------------
Total Municipal Bonds (Cost $119,052,538)--96.0%................................................................... 125,925,786
Total Variable Rate Demand Notes (Cost $4,000,000)--3.1%........................................................... 4,000,000
Other Assets Less Liabilities--0.9%................................................................................ 1,211,785
------------
NET ASSETS--100.0%................................................................................................. $131,137,571
============
</TABLE>
<TABLE>
<CAPTION>
MISSOURI SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$2,000,000 Columbia, MO Water and Electric System Improvement Rev., 6 1/8% due 10/1/2012 ............ A1/AA $2,051,240
1,500,000 Kansas City Metropolitan Community Colleges Building Corp., MO Rev. (The Junior
College District of Metropolitan Kansas City), 7 3/4% due 7/1/2006 ..................... Aaa/AAA 1,532,625
3,775,000 Kansas City, MO Water Rev., 6 1/4% due 12/1/2009 ......................................... Aa/AA 3,864,694
1,250,000 Kansas City School District Building Corporation, MO Leasehold Rev., 6 1/2% due 2/1/2008 Aaa/AAA 1,349,850
1,500,000 Kansas City School District Building Corporation, MO Leasehold Rev.,
7.90% due 2/1/2008 ..................................................................... Aaa/AAA 1,630,770
1,000,000 Liberty, MO Waterworks Improvement Rev., 6.30% due 10/1/2012 ............................. Aaa/AAA 1,042,150
2,000,000 Little Blue Valley, MO Sewer District Rev., 7 1/4% due 10/1/2007 ......................... Aaa/AAA 2,120,680
1,000,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7 3/8% due 3/1/2006 .................................................................... Aaa/AAA 1,057,470
2,000,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7% due 3/1/2006 ........................................................................ Aaa/AAA 2,104,740
1,000,000 Missouri State Environmental Improvement & Energy Resources Authority Rev ................
(State Revolving Fund Program), 6.55% due 7/1/2014 ..................................... Aa/NR 1,053,900
</TABLE>
------------------
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
15
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MISSOURI SERIES (continued)
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 Rev.
(Union Electric Company Project), 5.45% due 10/1/2028* .................................. A1/AA- $2,255,150
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 2,365,300
2,000,000 Missouri State G.O.'s, 5 5/8% due 4/1/2017 ................................................ Aaa/AAA 2,006,500
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 2,389,250
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 1,516,080
3,500,000 Missouri State Health & Educational Facilities Authority Rev. (SSM Health Care),
6 1/4% due 6/1/2016 ..................................................................... Aaa/AAA 3,605,595
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/AAA 1,104,000
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 875,610
2,500,000 Missouri State Health Facilities Rev. (Barnes-Jewish, Inc./Christian Health Services),
5 1/4% due 5/15/2021 .................................................................... Aa/AA 2,267,075
860,000 Missouri State Housing Development Commission Housing Development Bonds
(Federally Insured Mortgage Loans), 6% due 10/15/2019 ................................... Aa/AA+ 853,541
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- 1,673,865
2,400,000 Southeast Missouri Correctional Facility Lease Rev. (Missouri State Project),
5 3/4% due 10/15/2016 ................................................................... Aa/AA 2,326,848
2,000,000 Springfield, MO Public Utility Rev., 5 1/4% due 3/1/2007 .................................. Aa/AA 1,978,640
2,500,000 Springfield, MO Waterworks Rev., 5.60% due 5/1/2023 ....................................... Aa/A+ 2,379,600
2,750,000 University of Missouri University Revenues Refunding & Improvement Systems
Facilities, 5 1/2% due 11/1/2023 ........................................................ Aa/AA+ 2,600,895
------------
Total Municipal Bonds (Cost $46,719,174)--94.7%.................................................................... 48,006,068
Variable Rate Demand Notes (Cost $1,800,000)--3.5%................................................................. 1,800,000
Other Assets Less Liabilities--1.8%................................................................................ 898,905
------------
NET ASSETS--100.0%................................................................................................. $ 50,704,973
============
</TABLE>
<TABLE>
<CAPTION>
NEW YORK SERIES
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+ $5,161,750
2,500,000 Municipal Assistance Corporation for the City of New York, NY, 6.90% due 7/1/2007 ......... Aa/AA- 2,617,300
4,000,000 New York City Municipal Water Finance Authority, NY Water & Sewer System Rev.,
5 3/4% due 6/15/2018 .................................................................... Aaa/AAA 3,930,720
2,500,000 New York City, NY G.O.'s, 7 1/4% due 8/15/2024 ............................................ Baa1/BBB+ 2,636,900
------------------
* 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.
</TABLE>
16
<PAGE>
================================================================================
March 31, 1996
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$3,000,000 New York City, NY Health & Hospitals Corporation Health System,
5 3/4% due 2/15/2022 .................................................................... Aaa/AAA $2,898,030
3,500,000 New York State Dormitory Authority Rev. (Rockefeller University),
7 3/8% due 7/1/2014 ................................................................. ... Aaa/AAA 3,778,075
5,000,000 New York State Dormitory Authority Rev. (Fordham University), 5 3/4% due 7/1/2015 ......... Aaa/AAA 4,993,700
1,540,000 New York State Dormitory Authority Rev. (Colgate University), 6 1/2% due 7/1/2021 ......... Aaa/AAA 1,706,967
5,000,000 New York State Dormitory Authority Rev. (Skidmore College), 5 3/8% due 7/1/2023 ........... Aaa/AAA 4,626,700
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 4,576,455
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 1,433,520
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 2,678,375
3,000,000 New York State Environmental Facilities Corporation Pollution Control Rev
(State Water--Revolving Fund), 6.90% due 11/15/2015 ....................................... Aaa/AAA 3,381,390
3,000,000 New York State Housing Finance Agency Rev. (Phillips Village Project),
7 3/4% due 8/15/2017* ..................................................................... A/NR 3,313,650
3,500,000 New York State Local Government Assistance Corp., 6% due 4/1/2024 ......................... A/A 3,481,170
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 4,080,240
2,000,000 New York State Mortgage Agency (Homeownership Mortgage), 7 1/2% due 4/1/2016 .............. Aa/NR 2,114,040
5,000,000 New York State Power Authority General Purpose Rev., 6 1/2% due 1/1/2019 .................. Aaa/AAA 5,339,500
4,000,000 New York State Thruway Authority Rev., 6 1/4% due 4/1/2014 ................................ Baa1/BBB 4,003,120
4,000,000 New York State Thruway Authority General Rev., 6% due 1/1/2025 ............................ Aaa/AAA 4,009,000
2,500,000 Niagara Falls, NY Bridge Commission Toll Bridge System Rev., 5 1/4% due 10/1/2015 ......... Aaa/AAA 2,365,750
2,250,000 Port Authority of New York and New Jersey Consolidated Rev., 6 1/8% due 6/1/2094 .......... A1/AA- 2,360,340
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 4,964,950
------------
Total Municipal Bonds (Cost $78,596,354)--97.0%.................................................................... 80,451,642
Total Variable Rate Demand Notes (Cost $2,100,000)--2.5%........................................................... 2,100,000
Other Assets Less Liabilities--0.5%................................................................................ 408,131
------------
NET ASSETS--100.0%................................................................................................. $ 82,959,773
============
</TABLE>
<TABLE>
<CAPTION>
OHIO SERIES
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 $2,115,360
3,450,000 Big Walnut Local School District, OH School Building Construction & Improvement
G.O.'s, 7.20% due 6/1/2007 ............................................................. Aaa/AAA 3,919,786
3,000,000 Clermont County, OH Hospital Facilities Rev. (Mercy Health System), 5 7/8% due 1/1/2015 Aaa/AAA 2,987,880
2,000,000 Cleveland, OH Waterworks Improvement Rev., 6% due 1/1/2017 ............................... A1/A+ 1,967,160
2,250,000 Cleveland, OH Waterworks Improvement Rev., 6 1/2% due 1/1/2021 ........................... Aaa/AAA 2,491,223
------------------
* 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.
</TABLE>
17
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS (continued)
--------------------------------------------------------------------------------
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 G.O.'s, 6 1/2% due 1/1/2010 ................................................. Aaa/AAA $5,344,600
4,500,000 Columbus, OH Municipal Airport Authority Rev. (Port Columbus International
Airport Project), 6% due 1/1/2020* ....................................................... Aaa/AAA 4,482,585
3,000,000 Dayton, OH Water System Mortgage Rev., 6 3/4% due 12/1/2010 .............................. Aaa/AAA 3,164,010
7,000,000 Erie County, OH Franciscan Services Corp. Rev. (Providence Hospital Inc.),
6% due 1/1/2013 .......................................................................... NR/A- 6,783,770
1,000,000 Euclid City School District, OH G.O.'s, 7.10% due 12/1/2011 .............................. A/NR 1,137,320
7,750,000 Franklin County, OH G.O.'s, 5 3/8% due 12/1/2020 ......................................... Aaa/AAA 7,417,912
7,500,000 Franklin County, OH Hospital Rev. (Riverside United Methodist Hospital),
5 3/4% due 5/15/2020 ..................................................................... Aa/NR 7,026,450
5,000,000 Hamilton County, OH Health Care System Rev. (Sisters of Charity Health Care),
6 1/4% due 5/15/2014 ..................................................................... Aaa/AAA 5,160,900
5,000,000 Hamilton County, OH Sewer System Rev. (The Metropolitan Sewer District
of Greater Cincinnati), 7 1/2% due 12/1/2010 ............................................. NR/AAA 5,133,550
2,500,000 Hamilton County, OH Sewer System Rev., 5 1/2% due 12/1/2017 .............................. Aaa/AAA 2,428,925
8,000,000 Hamilton, OH Electric System Mortgage Rev., 6% due 10/15/2023 ............................ Aaa/AAA 8,106,320
4,000,000 Hudson Local School District, OH G.O.'s, 7.10% due 12/15/2013 ............................ A1/NR 4,507,040
1,095,000 Lake County, OH Hospital Improvement Rev. (Lake Hospital System Inc.),
8% due 1/1/2013 .......................................................................... Aaa/AAA 1,143,957
8,000,000 Lucas County, OH Hospital Improvement Rev. (The Toledo Hospital),
5% due 11/15/2010 ........................................................................ Aaa/AAA 7,570,320
3,000,000 Lucas County, OH Hospital Rev. (Riverside Hospital Project), 7 5/8% due 6/1/2015 Baa1/BBB+ 3,069,780
1,000,000 Montgomery County, OH Rev. (Sisters of Charity Health Care Systems, Inc.),
6 5/8% due 5/15/2021 ..................................................................... Aaa/AAA 1,068,440
1,090,000 Mount Vernon, OH Hospital Rev. (Knox Community Hospital), 7 1/2% due 6/1/1996 ............ NR/NR 1,095,886
5,000,000 Mount Vernon, OH Hospital Rev. (Knox Community Hospital), 7 7/8% due 6/1/2012 ............. NR/NR 5,159,100
1,490,000 Napoleon, OH Health Care Facility Rev. (Lutheran Orphans' & Old Folks' Home Society),
10.70% due 7/15/2015 ..................................................................... NR/NR 1,564,098
5,000,000 Ohio Air Quality Development Authority Pollution Control Rev. (Ohio Edison
Company Project), 7.45% due 3/1/2016 ..................................................... Aaa/AAA 5,491,000
2,000,000 Ohio Air Quality Development Authority Rev. (Cincinnati Gas & Electric
Company Project), 5.45% due 1/1/2024 ..................................................... Aaa/AAA 1,882,820
6,500,000 Ohio Air Quality Development Authority Rev. (JMG Project), 6 3/8% due 1/1/2029* .......... Aaa/AAA 6,703,255
6,500,000 Ohio State Building Authority (State Correctional Facilities), 7.35% due 8/1/2006 ........ Aaa/NR 7,222,735
2,000,000 Ohio State Building Authority Workers' Compensation Facilities
(William Green Building), 4 3/4% due 4/1/2014 ............................................ A/A+ 1,769,300
3,000,000 Ohio State G.O.'s Infrastructure Improvement, 6 1/2% due 8/1/2011 ........................ Aa/AA 3,221,160
1,500,000 Ohio State Higher Educational Facilities Commission Mortgage Rev .........................
(University of Dayton Project), 7 1/4% due 12/1/2012 ..................................... Aaa/AAA 1,663,410
3,000,000 Ohio State Higher Educational Facilities Commission Rev. (Oberlin College Project),
5 3/8% due 10/1/2015 ..................................................................... NR/AA 2,858,970
2,000,000 Ohio State Liquor Profits Rev., 6.85% due 3/1/2000 ....................................... Aaa/AAA 2,168,080
7,000,000 Ohio State Public Facilities Commission Rev. (Higher Education Capital Facilities),
6.30% due 5/1/2006 ....................................................................... Aaa/AAA 7,496,580
------------------
* 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.
</TABLE>
18
<PAGE>
================================================================================
March 31, 1996
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OHIO SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$2,000,000 Ohio State Water Development Authority Rev. (Safe Water), 6 3/4% due 12/1/2007 ........... Aaa/AAA $2,115,220
2,570,000 Ohio State Water Development Authority Rev. (Safe Water), 9 3/8% due 12/1/2010 ........... Aaa/AAA 3,182,020
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- 2,595,800
8,000,000 Ohio State Water Development Authority Water Development Rev. (Dayton Power &
Light Co. Project), 6.40% due 8/15/2027 ................................................ Aa3/AA- 8,258,080
2,955,000 Pickerington Local School District, OH School Building Construction G.O.'s,
8% due 12/1/2005 ....................................................................... Aaa/AAA 3,405,401
4,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2%,
due 7/1/2036 ........................................................................... Baa1/A 3,680,200
1,000,000 Puerto Rico Industrial, Medical and Environmental Pollution Control
Facilities Financing Authority Rev. (American Cyanamid Co. Project),
8 3/4% due 5/1/2013 A3/NR 1,023,540
775,000 Toledo, OH Sewer System Rev., 7 3/4% due 11/15/2017 ....................................... Aaa/AAA 847,664
560,000 Toledo, OH Waterworks Rev., 7 3/4% due 11/15/2017 ......................................... Aaa/AAA 612,506
3,000,000 University of Toledo, OH General Receipts Bonds, 7.10% due 6/1/2010 ...................... Aaa/AAA 3,349,380
2,000,000 Worthington City School District, OH School Building
Construction & Improvement G.O.'s, 8 3/4% due 12/1/2002 Aaa/AAA 2,293,560
------------
Total Municipal Bonds (Cost $159,378,521)--100.4%.................................................................. 166,687,053
Other Assets Less Liabilities--(0.4)%.............................................................................. (604,803)
.................................................................................................................. ------------
NET ASSETS--100.0%................................................................................................. $166,082,250
============
</TABLE>
<TABLE>
<CAPTION>
OREGON SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P* VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$1,000,000 Albany, OR G.O.'s Water Bonds, 6 5/8% due 11/1/2009 ...................................... Aaa/AAA $1,002,090
1,000,000 Clackamas County, OR Hospital Facility Authority Rev. (Kaiser Permanente),
6 1/4% due 4/1/2021 .................................................................... Aa3/AA 1,007,880
1,500,000 Clackamas & Washington Counties, OR School District No. 3JT G.O.'s
(West Linn-Wilsonville), 5 7/8% due 8/1/2009 .............................................. A1/AA- 1,524,015
850,000 Columbia River People's Utility District, OR G.O.'s, 7.10% due 5/1/2005 .................. Aaa/AAA 852,686
1,000,000 Deschutes County Hospital Facility Authority, OR (St. Charles Medical Center),
7.60% due 1/1/2013 A1/NR 1,059,030
400,000 Emerald People's Utility District, OR Electric System Rev., 7.20% due 11/1/2006 .......... Aaa/AAA 406,980
2,000,000 Eugene, OR Electric Utility Rev., 5.80% due 8/1/2022 ..................................... Aaa/AAA 1,983,820
1,500,000 Eugene, OR Trojan Nuclear Project Rev., 5.90% due 9/1/2009 ............................... Aa/AA 1,486,215
730,000 Eugene, OR Water Utility System Rev., 6.55% due 8/1/2003 ................................. A1/AA- 748,454
1,000,000 Hood River County School District, OR G.O.'s, 5.65% due 6/1/2008 ......................... Aaa/AAA 1,028,630
900,000 Marion County, OR Solid Waste and Electric Rev. (Ogden Martin Systems of Marion, Inc. ....
Project), 7.70% due 10/1/2009 .......................................................... Aaa/AAA 929,196
1,000,000 Metropolitan Service District, OR G.O.'s (Oregon Convention Center),
6 1/4% due 1/1/2013 .................................................................... Aa/AA+ 1,053,200
1,250,000 Multnomah County School District, OR G.O.'s, 6.80% due 12/15/2004 ........................ Aa/A+ 1,291,925
------------------
* 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.
</TABLE>
19
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OREGON SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$1,750,000 Multnomah County School District, OR G.O.'s, 5 1/2% due 6/1/2015 ......................... A1/A+ $1,697,448
2,000,000 North Clackamas Parks & Recreation District-Clackamas County, OR Rev .....................
(Recreational Facilities), 5.70% due 4/1/2013 NR/A- 1,955,320
2,000,000 North Wasco County People's Utility District-Wasco County, OR Rev ........................
(Bonneville Power Administration), 5.20% due 12/1/2024 Aa/AA 1,802,240
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 2,619,675
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- 728,040
1,000,000 Oregon Department of Transportation Regional Light Rail Extension Rev.,
6.20% due 6/1/2008 ..................................................................... Aaa/AAA 1,082,250
1,850,000 Oregon Health, Housing, Educational &Cultural Facilities Authority Rev ...................
(Reed College Project), 5 3/8% due 7/1/2025 ............................................ NR/A+ 1,693,656
1,250,000 Oregon Health Sciences University Rev., 5 1/4% due 7/1/2028 .............................. Aaa/AAA 1,155,213
400,000 Oregon Housing Agency Mortgage Rev. (Single Family Mortgage Program),
7 3/8% due 7/1/2020* ................................................................... Aa1/NR 408,380
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+ 1,985,200
955,000 Oregon Housing & Community Services Department Mortgage Rev. (Single Family
Mortgage Program), 5.65% due 7/1/2019* ................................................. Aa/NR 916,743
920,000 Oregon Housing & Community Services Department Mortgage Rev. (Single Family
Mortgage Program), 7% due 7/1/2022* .................................................... Aa1/NR 949,900
1,000,000 Oregon State Department of Administrative Services Certificates of Participation,
5 1/2% due 11/1/2020 Aaa/AAA 963,430
2,785,000 Oregon State Fair & Exposition Center Rev., 7 3/8% due 10/1/2006 ......................... NR/NR 2,805,971
500,000 Oregon State G.O.'s (Veterans' Welfare), 9% due 10/1/2006 ................................ Aa/AA- 663,365
1,500,000 Oregon State G.O.'s (Veterans' Welfare), 5 7/8% due 10/1/2018 ............................ Aa/AA- 1,461,660
500,000 Oregon State G.O.'s (Alternate Energy Project), 8.40% due 1/1/2008 ....................... Aa/AA- 556,440
250,000 Oregon State G.O.'s (Elderly & Disabled Housing), 7.20% due 8/1/2021 ..................... Aa/AA- 254,267
1,000,000 Oregon State G.O.'s (Elderly & Disabled Housing), 6.60% due 8/1/2022* .................... Aa/AA- 1,025,570
500,000 Port of Portland, OR International Airport Rev., 6 1/4% due 7/1/2018* .................... Aaa/AAA 506,625
1,000,000 Port of Portland, OR International Airport Rev., 7.10% due 7/1/2021* ..................... Aaa/AAA 1,090,550
500,000 Port of Portland, OR International Airport Rev., 5 3/4% due 7/1/2025* .................... Aaa/AAA 480,815
1,000,000 Port of Umpqua, OR Pollution Control Rev. (International Paper Co. Project),
6.60% due 3/15/2005 .................................................................... A3/A- 1,034,400
1,250,000 Portland, OR Hospital Facilities Authority Rev. (Legacy Health System),
6 5/8% due 5/1/2011 .................................................................... Aaa/AAA 1,330,575
3,000,000 Portland, OR Sewer System Rev., 6% due 10/1/2012 ......................................... Aaa/AAA 3,100,800
1,200,000 Portland, OR Sewer System Rev., 6 1/4% due 6/1/2015 ...................................... A1/A+ 1,240,008
1,000,000 Portland, OR Urban Renewal & Redevelopment Rev. (Downtown Waterfront),
6.40% due 6/1/2008 ..................................................................... A/NR 1,040,640
1,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2019 ......... Baa1/A 924,690
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 .......... Baa1/A 920,050
------------------
* 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.
</TABLE>
20
<PAGE>
================================================================================
March 31, 1996
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OREGON SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$ 655,000 Puerto Rico Housing Finance Corp. (Single Family Mortgage Rev.),
6.85% due 10/15/2023 ................................................................... Aaa/AAA $ 679,890
1,000,000 Puerto Rico Ports Authority Rev., 7% due 7/1/2014* ....................................... Aaa/AAA 1,092,180
1,000,000 Puerto Rico Telephone Authority Rev., 5 1/2% due 1/1/2013 ................................ A/A+ 974,290
1,000,000 Tri-County Metropolitan Transportation District of Oregon G.O.'s (Light Rail Extension),
6% due 7/1/2012 ........................................................................ Aa/AA+ 1,020,490
1,110,000 Tualatin Development Commission, OR (Urban Renewal & Redevelopment),
7 3/8% due 1/1/2007 .................................................................... Baa1/NR 1,128,093
2,000,000 Unified Sewerage Agency Washington County, OR Sewer Rev., 6i% due 10/1/2012 .............. Aaa/AAA 2,088,140
1,000,000 Washington County School District No. 88J, OR G.O.'s., 6.10% due 6/1/2012 ................ Aaa/AAA 1,044,140
1,000,000 Washington County School District No. 23JT Washington & Clackamas Counties,
OR G.O.'s., 6.70% due 1/1/2010 ......................................................... NR/NR 1,074,440
------------
Total Municipal Bonds (Cost $58,396,776)--99.5%.................................................................... 59,869,705
Variable Rate Demand Notes (Cost $100,000)--0.2%................................................................... 100,000
Other Assets Less Liabilities--0.3%................................................................................ 207,683
------------
NET ASSETS--100.0%................................................................................................. $ 60,177,388
============
</TABLE>
<TABLE>
<CAPTION>
SOUTH CAROLINA SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P* VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$1,125,000 Anderson County, SC G.O.'s, 7 3/4% due 4/1/2009 ........................................... NR/A $1,203,199
2,500,000 Anderson County, SC Hospital Rev. (Anderson Memorial Hospital), 5 1/4% due 2/1/2012 ....... Aaa/AAA 2,366,000
1,000,000 Anderson County, SC Hospital Rev. (Anderson Memorial Hospital), 7 1/2% due 2/1/2018 ....... Aaa/AAA 1,080,160
1,500,000 Beaufort-Jasper Water & Sewer Authority, SC Waterworks & Sewer System Rev.,
6 1/2% due 3/1/2013 Aaa/AAA 1,610,025
3,800,000 Berkeley County, SC Water & Sewer Rev., 5.55% due 6/1/2016 ................................ Aaa/AAA 3,687,558
3,000,000 Charleston County, SC Airport District System Rev., 4 3/4% due 7/1/2015 ................... Aaa/AAA 2,596,530
3,000,000 Charleston County, SC Hospital Facilities Rev. (Bon Secours Health System Project),
5 5/8% due 8/15/2025 .................................................................... Aaa/AAA 2,861,190
1,750,000 Charleston County, SC Hospital Facilities Rev. (Medical Society Health Project),
5 1/2% due 10/1/2019 .................................................................... Aaa/AAA 1,636,320
745,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 2/1/2004 ...................................................................... A1/A 805,077
770,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 8/1/2004 ...................................................................... A1/A 832,093
800,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.20% due 2/1/2005 ...................................................................... A1/A 860,840
750,000 Charleston, SC Waterworks & Sewer System Rev., 7 3/4% due 1/1/2011 ........................ Aaa/AAA 811,282
2,500,000 Charleston, SC Waterworks & Sewer System Rev., 6% due 1/1/2012 ............................ A1/AA- 2,530,600
1,500,000 Clemson University, SC Student & Faculty Housing Rev., 6.65% due 6/1/2011 ................. Aaa/AAA 1,587,645
1,000,000 Clinton, SC Utility System Rev., 7.20% due 6/1/2011 ....................................... A/NR 1,073,800
1,150,000 Columbia, SC Parking Facilities Rev., 6 3/4% due 12/1/2013 ................................ Baa1/NR 1,173,633
------------------
* 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.
</TABLE>
21
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SOUTH CAROLINA SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P* VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$ 500,000 Columbia, SC Waterworks & Sewer System Rev., 7.10% due 2/1/2012 ........................... Aaa/AA $ 562,590
6,000,000 Darlington County, SC Industrial Development Rev. (Nucor Corporation Project),
5 3/4% due 8/1/2023* .................................................................... A1/AA- 5,737,140
1,500,000 Dorchester County School District No. 002, SC G.O.'s, 6.65% due 7/1/2010.. ................ Aaa/AAA 1,632,015
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 Florence County, SC Hospital Rev. (McLeod Regional Medical Center Project),
5 1/4% due 11/1/2009 .................................................................... Aaa/AAA 972,510
1,000,000 Georgetown County, SC Pollution Control Facilities Rev. (International Paper Company),
7 3/8% due 6/15/2005 .................................................................... A3/A- 1,073,310
1,500,000 Grand Strand Water & Sewer Authority, SC Waterworks and Sewer System Rev.,
7% due 6/1/2019 ......................................................................... Aaa/AAA 1,618,785
3,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5 1/2% due 5/1/2016. ............. NR/AA- 2,816,070
2,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5 1/4% due 5/1/2023. ............. Aa/AA- 1,805,220
3,000,000 Greenwood County, SC Hospital Facilities Rev. (Self Memorial Hospital),
5 7/8% due 10/1/2017 ..................................................................... Aaa/AAA 2,976,480
2,425,000 Lancaster County, SC School District G.O.'s, 6.60% due 7/1/2011 ........................... Aaa/AAA 2,606,875
2,600,000 Lancaster County, SC School District G.O.'s, 6.60% due 7/1/2012 ........................... Aaa/AAA 2,787,824
2,000,000 Lancaster County, SC Waterworks & Sewer System Rev., 5 1/4% due 5/1/2021 .................. Aaa/AAA 1,838,120
2,720,000 Laurens County, SC Combined Utility System Rev., 5% due 1/1/2018 .......................... Aaa/AAA 2,437,283
1,650,000 Laurens County, SC Combined Utility System Rev., 7 5/8% due 1/1/2018 ...................... Aaa/AAA 1,796,751
500,000 Laurens County, SC Health Care System, 7.80% due 1/1/2008 ................................. Aaa/AAA 541,275
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 1,106,860
1,000,000 Medical University South Carolina Hospital Facilities Rev., 5.60% due 7/1/2011 ............ Aaa/AAA 1,002,960
4,800,000 Mount Pleasant, SC Water & Sewer Rev., 6% due 12/1/2020 ................................... Aaa/AAA 4,857,744
2,000,000 Myrtle Beach, SC Waterworks & Sewer System Rev., 5 1/4% due 3/1/2020 ...................... Aaa/AAA 1,839,180
1,500,000 North Charleston Sewer District, SC Rev., 6 3/8% due 7/1/2012 ............................. Aaa/AAA 1,643,085
1,500,000 North Charleston Sewer District, SC Rev., 7 3/4% due 8/1/2018 ............................. Aaa/AAA 1,647,375
5,000,000 Oconee County, SC Pollution Control Facilities Rev. (Duke Power Co. Project),
5.80% due 4/1/2014 ...................................................................... Aa2/AA- 4,988,900
1,250,000 Piedmont Municipal Power Agency, SC Electric Rev., 6 1/4% due 1/1/2021 .................... Aaa/AAA 1,337,013
4,000,000 Piedmont Municipal Power Agency, SC Electric Rev., 6.30% due 1/1/2022 ..................... Aaa/AAA 4,121,520
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2%, due 7/1/2036 Baa1/A 920,050
1,000,000 Puerto Rico Telephone Authority Rev., 5 1/2% due 1/1/2022 ................................. A/A+ 954,900
2,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp Corp. Project),
7.45% due 4/1/2021* ..................................................................... A1/A- 2,190,380
1,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp Corp. Project),
7 1/8% due 9/1/2021* .................................................................... A1/A- 1,080,600
1,000,000 Rock Hill, SC Combined Utilities System Rev., 8% due 1/1/2018 ............................. Aaa/AAA 1,085,900
5,000,000 Rock Hill, SC Combined Utilities System Rev., 5% due 1/1/2020 ............................. Aaa/AAA 4,451,850
1,000,000 St. Andrews, SC Public Service District Sewer Systems Rev., 7 3/4% due 1/1/2018 ........... Aaa/AAA 1,070,020
1,150,000 South Carolina Public Service Authority Rev., 5 7/8% due 1/1/2014 ......................... Aaa/AAA 1,172,781
------------------
* 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.
</TABLE>
22
<PAGE>
================================================================================
March 31, 1996
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SOUTH CAROLINA SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P* VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$4,000,000 South Carolina Public Service Authority Rev. (Santee Cooper), 5 1/2% due 1/1/2023 ......... Aaa/AAA $ 3,759,080
1,000,000 South Carolina Public Service Authority Electric Rev. & Electric System Expansion,
8% due 7/1/2019 ......................................................................... Aaa/AA- 1,041,150
4,000,000 South Carolina State G.O.'s, 4 1/4% due 3/1/2009 .......................................... Aaa/AA+ 3,575,880
1,740,000 South Carolina State Housing Authority (Single Family Mortgage Purchase),
6.70% due 7/1/2010 ...................................................................... Aaa/AA 1,769,980
500,000 South Carolina State Housing Finance & Development Authority (Homeownership
Mortgage), 7.55% due 7/1/2011 ........................................................... Aa/AA 526,770
2,340,000 South Carolina State Housing Finance & Development Authority Rental Housing Rev.
(North Bluff Project), 5.60% due 7/1/2016 ............................................... NR/AA 2,222,977
1,000,000 South Carolina State Housing Finance & Development Authority (Multi-Family
Development Rev.), 6 7/8% due 11/15/2023 ................................................ Aaa/NR 1,034,110
1,500,000 Sumter, SC Waterworks & Sewer System Rev., 7.15% due 6/1/2009 ............................. Aaa/AAA 1,638,495
2,000,000 Western Carolina Regional Sewer Authority, SC Sewer System Rev., 5 1/2% due 3/1/2010 ...... Aaa/AAA 1,999,900
1,080,000 Winnsboro, SC Combined Utility System Rev., 6.90% due 7/1/2017 ............................ Aaa/AAA 1,183,172
1,000,000 York County Public Facilities Corporation, SC Certificates of Participation (York County
Justice Center Project), 7 1/2% due 6/1/2011 ............................................ Aaa/NR 1,149,860
------------
Total Municipal Bonds (Cost $112,300,093)--102.5%.................................................................. 115,948,442
Variable Rate Demand Notes (Cost $300,000)--0.3%................................................................... 300,000
Other Assets Less Liabilities--(2.8)%.............................................................................. (3,117,534)
------------
NET ASSETS--100.0%................................................................................................. $113,130,908
============
------------------
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
</TABLE>
23
<PAGE>
================================================================================
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL COLORADO GEORGIA LOUISIANA MARYLAND
SERIES SERIES SERIES SERIES SERIES
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (see portfolios
of investments):
Long-term holdings $107,096,113 $53,294,904 $57,157,921 $58,315,108 $55,053,654
Short-term holdings -- 700,000 300,000 -- 600,000
------------ ----------- ----------- ----------- -----------
107,096,113 53,994,904 57,457,921 58,315,108 55,653,654
Cash -- -- 56,338 309,263 23,761
Receivable for Capital Stock sold 2,196,106 10,904 7,797 -- --
Interest receivable 1,896,901 1,073,516 1,099,786 1,022,057 1,118,593
Expenses prepaid to shareholder
service agent 6,620 3,578 4,759 6,152 40,496
Receivable for securities sold -- 10,067 -- -- 225,000
Other 1,185 577 -- 443 954
------------ ----------- ----------- ----------- -----------
Total Assets 111,196,925 55,093,546 58,626,601 59,653,023 57,062,458
------------ ----------- ----------- ----------- -----------
LIABILITIES:
Payable for securities purchased 4,944,700 1,820,600 910,300 -- 910,300
Dividends payable 207,645 103,966 108,729 117,793 108,869
Payable to custodian 121,427 72,231 -- -- --
Payable for Capital Stock repurchased 31,015 47,138 110,601 201,307 147,402
Accrued expenses, taxes, and other 133,881 78,263 92,992 77,403 90,645
------------ ----------- ----------- ----------- -----------
Total Liabilities 5,438,668 2,122,198 1,222,622 396,503 1,257,216
------------ ----------- ----------- ----------- -----------
Net Assets $105,758,257 $52,971,348 $57,403,979 $59,256,520 $55,805,242
============ =========== =========== =========== ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A 13,628 7,237 7,027 7,237 6,903
Class D 196 34 345 44 135
Additional paid-in capital 108,254,970 52,114,735 56,262,596 56,736,474 53,858,992
Undistributed/accumulated net realized
gain (loss) (4,034,612) (274,044) 125,301 487,952 (12,706)
Net unrealized appreciation of investments 1,524,075 1,123,386 1,008,710 2,024,813 1,951,918
------------ ----------- ----------- ----------- -----------
Net Assets $105,758,257 $52,971,348 $57,403,979 $59,256,520 $55,805,242
============ =========== =========== =========== ===========
NET ASSETS:
Class A $104,256,262 $ 52,721,931 $ 54,715,637 $ 58,900,534 $ 54,733,277
Class D $ 1,501,995 $ 249,417 $ 2,688,342 $ 355,986 $ 1,071,965
SHARES OF CAPITAL STOCK OUTSTANDING
($.001 Par Value):
Class A 13,627,969 7,236,707 7,027,305 7,236,602 6,903,480
Class D 196,469 34,254 344,670 43,748 135,068
NET ASSET VALUE PER SHARE:
Class A $7.65 $7.29 $7.79 $8.14 $7.93
Class D $7.64 $7.28 $7.80 $8.14 $7.94
</TABLE>
----------------
See notes to financal staements.
================================================================================
March 31, 1996
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MASSACHUSETTS MICHIGAN MINNESOTA MISSOURI NEW YORK OHIO
SERIES SERIES SERIES SERIES SERIES SERIES
-------------- -------------- ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (see portfolios
of investments):
Long-term holdings $108,327,989 $148,078,494 $125,925,786 $48,006,068 $80,451,642 $166,687,053
Short-term holdings 5,800,000 700,000 4,000,000 1,800,000 2,100,000 --
------------ ------------ ------------ ----------- ----------- ------------
114,127,989 148,778,494 129,925,786 49,806,068 82,551,642 166,687,053
Cash 164,536 125,335 94,511 64,538 194,904 588,813
Receivable for Capital Stock sold 10,120 16,090 8,401 9,620 12,176 63,083
Interest receivable 1,841,618 3,100,637 1,779,868 1,001,500 1,356,042 3,067,157
Expenses prepaid to shareholder
service agent 9,261 9,662 9,125 3,578 5,546 10,914
Receivable for securities sold -- -- -- -- -- --
Other -- 1,781 82 83 380 960
------------ ------------ ------------ ----------- ----------- ------------
Total Assets 116,153,524 152,031,999 131,817,773 50,885,387 84,120,690 170,417,980
------------ ------------ ------------ ----------- ----------- ------------
LIABILITIES:
Payable for securities purchased 3,641,200 -- -- -- -- 3,641,200
Dividends payable 221,373 307,802 265,454 97,541 168,659 342,929
Payable to custodian -- -- -- -- -- --
Payable for Capital Stock repurchased 181,999 430,236 252,244 9,942 863,475 159,851
Accrued expenses, taxes, and other 139,512 172,472 162,504 72,931 128,783 191,750
------------ ------------ ------------ ----------- ----------- ------------
Total Liabilities 4,184,084 910,510 680,202 180,414 1,160,917 4,335,730
------------ ------------ ------------ ----------- ----------- ------------
Net Assets $111,969,440 $151,121,489 $131,137,571 $50,704,973 $82,959,773 $166,082,250
============ ============ ============ =========== =========== ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A 14,217 17,801 16,790 6,551 10,371 20,535
Class D 151 176 287 90 108 119
Additional paid-in capital 108,914,089 144,838,593 126,504,718 49,042,925 80,834,708 158,567,033
Undistributed/accumulated net realized
gain (loss) 758,197 977,377 (2,257,472) 368,513 259,298 186,031
Net unrealized appreciation of investments 2,282,786 5,287,542 6,873,248 1,286,894 1,855,288 7,308,532
------------ ------------ ------------ ----------- ----------- ------------
Net Assets $111,969,440 $151,121,489 $131,137,571 $50,704,973 $82,959,773 $166,082,250
============ ============ ============ =========== =========== ============
NET ASSETS:
Class A $ 110,796,357 $ 149,641,522 $ 128,935,137 $ 50,017,915 $ 82,104,093 $ 165,119,337
Class D $ 1,173,083 $ 1,479,967 $ 2,202,434 $ 687,058 $ 855,680$ 962,913
SHARES OF CAPITAL STOCK OUTSTANDING
Class A 14,217,487 17,800,704 16,790,436 6,551,481 10,371,279 20,535,216
Class D 150,593 176,180 286,736 89,981 107,969 119,178
NET ASSET VALUE PER SHARE:
Class A $7.79 $8.41 $7.68 $7.63 $7.92 $8.04
Class D $7.79 $8.40 $7.68 $7.64 $7.93 $8.08
</TABLE>
<TABLE>
<CAPTION>
OREGON SOUTH CAROLINA
SERIES SERIES
------------ --------------
<S> <C> <C>
ASSETS:
Investments, at value (see portfolios
of investments):
Long-term holdings $59,869,705 $ 115,948,442
Short-term holdings 100,000 300,000
----------- ------------
59,969,705 116,248,442
Cash 106,592 172,307
Receivable for Capital Stock sold 10,671 13,044
Interest receivable 1,222,343 1,819,257
Expenses prepaid to shareholder
service agent 4,198 7,693
Receivable for securities sold -- --
Other 539 148
----------- ------------
Total Assets 61,314,048 118,260,891
----------- ------------
LIABILITIES:
Payable for securities purchased 910,300 4,748,022
Dividends payable 120,063 224,497
Payable to custodian -- --
Payable for Capital Stock repurchased 34,105 24,672
Accrued expenses, taxes, and other 72,192 132,792
----------- ------------
Total Liabilities 1,136,660 5,129,983
----------- ------------
Net Assets $60,177,388 $113,130,908
=========== ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A 7,710 13,863
Class D 198 290
Additional paid-in capital 58,645,279 108,950,734
Undistributed/accumulated net realized
gain (loss) 51,272 517,672
Net unrealized appreciation of investments 1,472,929 3,648,349
----------- ------------
Net Assets $60,177,388 $113,130,908
=========== ============
NET ASSETS:
Class A $ 58,673,572 $110,811,301
Class D $ 1,503,816 $ 2,319,607
SHARES OF CAPITAL STOCK OUTSTANDING
Class A 7,710,227 13,862,794
Class D 197,748 290,498
NET ASSET VALUE PER SHARE:
Class A $7.61 $7.99
Class D $7.60 $7.98
</TABLE>
25
<PAGE>
================================================================================
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL COLORADO GEORGIA LOUISIANA MARYLAND
SERIES SERIES SERIES SERIES SERIES
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $3,181,583 $1,607,706 $1,694,674 $1,850,777 $1,677,288
---------- ---------- ---------- ---------- ----------
EXPENSES:
Management fees 268,600 137,101 149,572 155,339 143,568
Shareholder account services 61,184 35,203 41,405 35,733 41,615
Distribution and service fees 56,042 28,268 37,999 32,069 32,133
Custody and related services 20,497 13,133 13,849 14,235 13,346
Auditing and legal fees 18,396 12,516 12,923 13,331 12,660
Registration 8,654 2,132 3,207 2,485 3,754
Shareholder reports and communications 4,919 3,618 3,378 3,232 3,663
Directors' fees and expenses 2,341 2,227 2,245 2,208 2,214
Miscellaneous 4,794 2,909 2,806 2,700 2,547
---------- ---------- ---------- ---------- ----------
Total expenses 445,427 237,107 267,384 261,332 255,500
---------- ---------- ---------- ---------- ----------
Net investment income 2,736,156 1,370,599 1,427,290 1,589,445 1,421,788
---------- ---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments 448,221 (6,037) 181,101 497,070 (3,317)
Net change in unrealized appreciation/
depreciation of investments 560,793 (55,538) 115,734 56,579 30,717
---------- ---------- ---------- ---------- ----------
Net gain (loss) on investments 1,009,014 (61,575) 296,835 553,649 27,400
---------- ---------- ---------- ---------- ----------
Increase in net assets from operations $3,745,170 $1,309,024 $1,724,125 $2,143,094 $1,449,188
========== ========== ========== ========== ==========
</TABLE>
26
<PAGE>
================================================================================
For the six months ended March 31, 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 $3,499,618 $4,655,667 $4,284,100 $1,516,757 $2,559,919 $5,250,679
---------- ---------- ---------- ---------- ---------- ----------
EXPENSES:
Management fees 292,480 387,568 336,529 129,454 215,485 430,484
Shareholder account services 79,534 88,694 86,625 33,364 47,738 99,141
Distribution and service fees 62,127 82,616 74,364 25,687 46,583 87,462
Custody and related services 18,158 26,348 24,636 14,622 17,784 31,019
Auditing and legal fees 21,259 26,091 24,890 11,835 15,515 28,529
Registration 4,939 4,853 3,908 3,559 3,817 3,450
Shareholder reports and communications 4,235 4,820 4,837 3,637 3,931 5,135
Directors' fees and expenses 2,322 2,425 2,441 2,182 2,269 2,403
Miscellaneous 3,949 5,659 4,180 2,353 3,462 4,598
---------- ---------- ---------- ---------- ---------- ----------
Total expenses 489,003 629,074 562,410 226,693 356,584 692,221
---------- ---------- ---------- ---------- ---------- ----------
Net investment income 3,010,615 4,026,593 3,721,690 1,290,064 2,203,335 4,558,458
---------- ---------- ---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments 891,980 979,825 (2,157,368) 527,318 1,205,135 202,331
Net change in unrealized appreciation/
depreciation of investments (914,827) (914,987) 62,023 (480,335) (606,964) (870,465)
---------- ---------- ---------- ---------- ---------- ----------
Net gain (loss) on investments (22,847) 64,838 (2,095,345) 46,983 598,171 (668,134)
---------- ---------- ---------- ---------- ---------- ----------
Increase in net assets from operations $2,987,768 $4,091,431 $1,626,345 $1,337,047 $2,801,506 $3,890,324
========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
OREGON SOUTH CAROLINA
SERIES SERIES
----------- --------------
<S> <C> <C>
INVESTMENT INCOME:
Interest $1,847,762 $3,426,305
--------- ---------
EXPENSES:
Management fees 153,837 291,102
Shareholder account services 38,247 68,892
Distribution and service fees 37,076 66,063
Custody and related services 15,376 23,316
Auditing and legal fees 14,277 20,243
Registration 2,729 3,224
Shareholder reports and communications 3,515 3,918
Directors' fees and expenses 2,189 2,184
Miscellaneous 3,485 3,862
---------- ----------
Total expenses 270,731 482,804
---------- ----------
Net investment income 1,577,031 2,943,501
---------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments 54,398 530,443
Net change in unrealized appreciation/
depreciation of investments (378,985) 65,573
---------- ----------
Net gain (loss) on investments (324,587) 596,016
---------- ----------
Increase in net assets from operations $1,252,444 $3,539,517
========== ==========
</TABLE>
27
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL SERIES COLORADO SERIES
----------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/96 9/30/95 3/31/96 9/30/95
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 2,736,156 $ 5,912,049 $ 1,370,599 $ 2,945,189
Net realized gain (loss) on
investments 448,221 (4,331,294) (6,037) 318,881
Net change in unrealized appreciation/depreciation
of investments 560,793 10,223,855 (55,538) 1,121,736
----------- ----------- ---------- ----------
Increase in net assets from operations 3,745,170 11,804,610 1,309,024 4,385,806
----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A (2,706,352) (5,878,199) (1,365,951) (2,940,344)
Class D (29,804) (33,850) (4,648) (4,845)
Net realized gain on investments:
Class A -- -- -- --
Class D -- -- -- --
----------- ----------- ---------- ----------
Decrease in net assets from distributions (2,736,156) (5,912,049) (1,370,599) (2,945,189)
----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A 4,106,594 2,851,364 733,634 1,419,305
Class D 406,119 885,065 53,205 102,710
Net asset value of shares issued in payment of dividends:
Class A 1,398,978 3,020,506 737,212 1,614,670
Class D 24,147 23,901 2,490 3,014
Exchanged from associated Funds:
Class A 7,834,695 9,766,862 85,049 523,761
Class D 153,679 835,262 1,923 --
Net asset value of shares issued in payment of
gain distribution:
Class A -- -- -- --
Class D -- -- -- --
----------- ----------- ---------- ----------
Total 13,924,212 17,382,960 1,613,513 3,663,460
----------- ----------- ---------- ----------
Cost of shares repurchased:
Class A (5,990,122) (18,952,660) (3,016,054) (7,041,417)
CLASS D (219,520) (112,028) -- (10,731)
Exchanged into associated Funds:
Class A (8,280,504) (9,700,508) (615,119) (1,293,621)
Class D (83,916) (931,548) -- (1,000)
----------- ----------- ---------- ----------
Total (14,574,062) (29,696,744) (3,631,173) (8,346,769)
----------- ----------- ---------- ----------
Decrease in net assets from capital share transactions (649,850) (12,313,784) (2,017,660) (4,683,309)
----------- ----------- ---------- ----------
Increase (decrease) in net assets 359,164 (6,421,223) (2,079,235) (3,242,692)
NET ASSETS:
Beginning of period 105,399,093 111,820,316 55,050,583 58,293,275
------------ ------------ ----------- -----------
End of period $105,758,257 $105,399,093 $52,971,348 $55,050,583
============ ============ =========== ===========
</TABLE>
28
<PAGE>
================================================================================
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GEORGIA SERIES LOUISIANA SERIES
----------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/96 9/30/95 3/31/96 9/30/95
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 1,427,290 $ 3,154,534 $ 1,589,445 $ 3,363,531
Net realized gain (loss) on
investments 181,101 362,501 497,070 468,171
Net change in unrealized appreciation/depreciation
of investments 115,734 3,043,005 56,579 2,190,601
---------- ---------- ---------- ----------
Increase in net assets from operations 1,724,125 6,560,040 2,143,094 6,022,303
---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A (1,382,481) (3,090,529) (1,580,766) (3,335,643)
Class D (44,809) (64,005) (8,679) (27,888)
Net realized gain on investments:
Class A (395,597) (831,300) (467,263) (1,076,420)
Class D (14,504) (13,226) (3,540) (12,456)
---------- ---------- ---------- ----------
Decrease in net assets from distributions (1,837,391) (3,999,060) (2,060,248) (4,452,407)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A 1,395,105 2,570,447 1,167,423 1,592,654
Class D 731,952 1,264,930 50,054 65,763
Net asset value of shares issued in payment of dividends:
Class A 882,330 1,976,148 814,126 1,855,635
Class D 39,486 57,730 6,189 23,376
Exchanged from associated Funds:
Class A 225,632 1,271,396 -- 250,945
Class D -- 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 3,592,494 7,797,131 2,358,727 4,563,725
---------- ---------- ---------- ----------
Cost of shares repurchased:
Class A (4,940,289) (10,210,900) (5,024,795) (5,202,189)
CLASS D (111,945) (125,984) (167,561) (354,393)
Exchanged into associated Funds:
Class A (738,020) (2,507,796) (440,289) (269,863)
Class D (42,430) (71,202) (5,400) --
---------- ---------- ---------- ----------
Total (5,832,684) (12,915,882) (5,638,045) (5,826,445)
---------- ---------- ---------- ----------
Decrease in net assets from capital share transactions (2,240,190) (5,118,751) (3,279,318) (1,262,720)
---------- ---------- ---------- ----------
Increase (decrease) in net assets (2,353,456) (2,557,771) (3,196,472) 307,176
NET ASSETS:
Beginning of period 59,757,435 62,315,206 62,452,992 62,145,816
----------- ----------- ----------- -----------
End of period $57,403,979 $59,757,435 $59,256,520 $62,452,992
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
MARYLAND SERIES MASSACHUSETTS SERIES
----------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/96 9/30/95 3/31/96 9/30/95
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 1,421,788 $ 3,008,028 $ 3,010,615 $ 6,394,660
Net realized gain (loss) on
investments (3,317) 236,106 891,980 1,446,650
Net change in unrealized appreciation/depreciation
of investments 30,717 2,550,147 (914,827) 2,623,425
---------- ---------- ----------- -----------
Increase in net assets from operations 1,449,188 5,794,281 2,987,768 10,464,735
---------- ---------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A (1,403,007) (2,986,376) (2,988,518) (6,351,161)
Class D (18,781) (21,652) (22,097) (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 distributions (1,663,476) (3,996,377) (4,580,145) (6,889,469)
---------- ---------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A 711,595 1,825,028 1,429,320 3,096,538
Class D 483,489 365,965 423,539 618,045
Net asset value of shares issued in payment of dividends:
Class A 813,397 1,711,454 1,744,110 3,662,542
Class D 14,953 14,257 15,111 33,446
Exchanged from associated Funds:
Class A 736,251 1,329,821 723,914 5,018,822
Class D -- 15,045 47,422 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 9,792 4,460
---------- ---------- ----------- -----------
Total 2,938,432 5,983,091 5,524,434 12,877,971
---------- ---------- ----------- -----------
Cost of shares repurchased:
Class A (3,113,070) (6,866,029) (5,422,556) (14,533,095)
CLASS D (40,945) (132,593) (197,995) (126,610)
Exchanged into associated Funds:
Class A (674,387) (1,469,104) (2,943,477) (5,616,572)
Class D (10,533) (80,763) -- (824,191)
---------- ---------- ----------- -----------
Total (3,838,935) (8,548,489) (8,564,028) (21,100,468)
---------- ---------- ----------- -----------
Decrease in net assets from capital share transactions (900,503) (2,565,398) (3,039,594) (8,222,497)
---------- ---------- ----------- -----------
Increase (decrease) in net assets (1,114,791) (767,494) (4,631,971) (4,647,231)
NET ASSETS:
Beginning of period 56,920,033 57,687,527 116,601,411 121,248,642
----------- ----------- ------------ ------------
End of period $55,805,242 $56,920,033 $111,969,440 $116,601,411
=========== =========== ============ ============
--------------
See notes to financial statements.
</TABLE>
29
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MICHIGAN SERIES MINNESOTA SERIES
------------------------------ -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/96 9/30/95 3/31/96 9/30/95
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 4,026,593 $ 8,244,445 $ 3,721,690 $ 7,901,996
Net realized gain (loss) on investments 979,825 2,565,892 (2,157,368) 250,044
Net change in unrealized appreciation/depreciation of
investments (914,987) 2,886,770 62,023 1,679,385
----------- ----------- ----------- -----------
Increase in net assets from operations 4,091,431 13,697,107 1,626,345 9,831,425
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A (3,992,194) (8,206,113) (3,670,360) (7,807,472)
Class D (34,399) (38,332) (51,330) (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 (6,578,036) (9,023,351) (4,067,013) (8,148,824)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A 2,623,393 6,333,074 3,189,415 4,204,185
Class D 487,246 580,729 275,434 859,498
Net asset value of shares issued in payment of dividends:
Class A 2,436,756 5,053,914 2,471,593 5,253,143
Class D 22,545 30,472 39,154 63,245
Exchanged from associated Funds:
Class A 364,268 864,699 398,710 1,435,131
Class D 178,681 104,572 16,762 159,356
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 8,035,841 13,553,672 6,666,533 12,168,972
----------- ----------- ----------- -----------
Cost of shares repurchased:
Class A (5,967,438) (14,573,617) (6,728,529) (12,629,875)
Class D (262,237) (181,421) (250,386) (277,761)
Exchanged into associated Funds:
Class A (847,889) (2,418,114) (982,970) (2,382,699)
CLASS D (111,349) (58,666) (79,205) (247,272)
----------- ----------- ----------- -----------
Total (7,188,913) (17,231,818) (8,041,090) (15,537,607)
----------- ----------- ----------- -----------
Increase (decrease) in net assets from capital share
transactions 846,928 (3,678,146) (1,374,557) (3,368,635)
----------- ----------- ----------- -----------
Increase (decrease) in net assets (1,639,677) 995,610 (3,815,225) (1,686,034)
NET ASSETS:
Beginning of period 152,761,166 151,765,556 134,952,796 136,638,830
------------ ------------ ------------ ------------
End of period $151,121,489 $152,761,166 $131,137,571 $134,952,796
============ ============ ============ ============
--------------
See notes to financial statements.
</TABLE>
30
<PAGE>
================================================================================
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MISSOURI SERIES NEW YORK SERIES
----------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/96 9/30/95 3/31/96 9/30/95
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 1,290,064 $ 2,737,886 $ 2,203,335 $ 4,773,085
Net realized gain (loss) on investments 527,318 331,360 1,205,135 (945,837)
Net change in unrealized appreciation/depreciation of
investments (480,335) 2,085,364 (606,964) 5,008,458
---------- ---------- ---------- ----------
Increase in net assets from operations 1,337,047 5,154,610 2,801,506 8,835,706
---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A (1,277,072) (2,720,786) (2,183,541) (4,746,318)
Class D (12,992) (17,100) (19,794) (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 (1,773,425) (3,232,272) (2,203,335) (6,779,994)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A 764,995 1,490,314 1,767,425 5,616,771
Class D 242,609 221,573 75,149 157,609
Net asset value of shares issued in payment of dividends:
Class A 658,976 1,401,213 1,240,768 2,634,442
Class D 7,146 12,801 14,777 21,246
Exchanged from associated Funds:
Class A 68,111 365,314 1,418,111 2,263,947
Class D 33,438 -- 151,221 364,576
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 2,089,112 3,815,481 4,667,451 12,673,332
---------- ---------- ---------- ----------
Cost of shares repurchased:
Class A (2,236,178) (6,123,870) (5,826,740) (15,940,087)
Class D (57,260) (70,945) (195,921) (156,491)
Exchanged into associated Funds:
Class A (289,963) (814,682) (1,068,146) (5,149,991)
CLASS D (48,294) (15,500) (80,081) (7,500)
---------- ---------- ---------- ----------
Total (2,631,695) (7,024,997) (7,170,888) (21,254,069)
---------- ---------- ---------- ----------
Increase (decrease) in net assets from capital share
transactions (542,583) (3,209,516) (2,503,437) (8,580,737)
---------- ---------- ---------- ----------
Increase (decrease) in net assets (978,961) (1,287,178) (1,905,266) (6,525,025)
NET ASSETS:
Beginning of period 51,683,934 52,971,112 84,865,039 91,390,064
----------- ----------- ----------- -----------
End of period $50,704,973 $51,683,934 $82,959,773 $84,865,039
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
OHIO SERIES OREGON SERIES
------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/96 9/30/95 3/31/96 9/30/95
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 4,558,458 $ 9,431,883 $ 1,577,031 $ 3,208,270
Net realized gain (loss) on investments 202,331 810,038 54,398 70,060
Net change in unrealized appreciation/depreciation of
investments (870,465) 5,388,960 (378,985) 1,780,874
----------- ----------- ---------- ----------
Increase in net assets from operations 3,890,324 15,630,881 1,252,444 5,059,204
----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A (4,540,378) (9,410,971) (1,543,427) (3,154,482)
Class D (18,080) (20,912) (33,604) (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 (5,356,028) (11,029,830) (1,640,572) (3,351,485)
----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A 2,622,810 4,802,866 1,861,955 3,693,429
Class D 308,497 277,972 256,040 897,335
Net asset value of shares issued in payment of dividends:
Class A 2,780,424 5,871,637 960,801 1,966,334
Class D 15,198 17,037 25,286 38,946
Exchanged from associated Funds:
Class A 544,479 787,632 121,830 884,994
Class D 4,272 28,117 21,324 --
Net asset value of shares issued in payment of
gain distribution:
Class A 599,049 1,221,569 46,901 107,524
Class D 3,281 3,510 1,353 1,995
----------- ----------- ---------- ----------
Total 6,878,010 13,010,340 3,295,490 7,590,557
----------- ----------- ---------- ----------
Cost of shares repurchased:
Class A (8,355,644) (15,867,883) (3,136,393) (6,179,880)
Class D (5,965) (10,683) (220,820) (210,837)
Exchanged into associated Funds:
Class A (1,808,475) (2,675,846) (356,138) (2,472,172)
CLASS D (10,486) -- (60,621) (118,837)
----------- ----------- ---------- ----------
Total (10,180,570) (18,554,412) (3,773,972) (8,981,726)
----------- ----------- ---------- ----------
Increase (decrease) in net assets from capital share
transactions (3,302,560) (5,544,072) (478,482) (1,391,169)
----------- ----------- ---------- ----------
Increase (decrease) in net assets (4,768,264) (943,021) (866,610) 316,550
NET ASSETS:
Beginning of period 170,850,514 171,793,535 61,043,998 60,727,448
------------ ------------ ----------- -----------
End of period $166,082,250 $170,850,514 $60,177,388 $61,043,998
============ ============ =========== ===========
</TABLE>
31
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (continued)
--------------------------------------------------------------------------------
SOUTH CAROLINA SERIES
-----------------------------
SIX MONTHS YEAR
ENDED ENDED
3/31/96 9/30/95
------------ ------------
OPERATIONS:
Net investment income $ 2,943,501 $ 6,032,145
Net realized gain on investments 530,443 255,806
Net change in unrealized
appreciation/depreciation of investments 65,573 5,014,984
----------- -----------
Increase in net assets from operations 3,539,517 11,302,935
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A (2,896,049) (5,962,919)
Class D (47,452) (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 (3,201,781) (6,241,820)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A 4,512,305 7,883,988
Class D 661,544 440,392
Net asset value of shares issued in
payment of dividends:
Class A 1,654,659 3,428,206
Class D 41,331 56,548
Exchanged from associated Funds:
Class A 609,707 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 7,680,404 13,417,453
----------- -----------
Cost of shares repurchased:
Class A (7,810,468) (17,698,986)
Class D (86,217) (360,978)
Exchanged into associated Funds:
Class A (1,109,636) (2,826,362)
Class D (6,000) (78,655)
----------- -----------
Total (9,012,321) (20,964,981)
----------- -----------
Decrease in net assets from capital
share transactions (1,331,917) (7,547,528)
----------- -----------
DECREASE IN NET ASSETS (994,181) (2,486,413)
NET ASSETS:
Beginning of period 114,125,089 116,611,502
------------ ------------
End of period $113,130,908 $114,125,089
============ ============
--------------
See notes to financial statements.
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
1. 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 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 contingent deferred sales
load ("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 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 class. 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
class. For the six months ended March 31, 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.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the six months ended March 31, 1996, were as follows:
SERIES PURCHASES SALES
------ ----------- ------
National $12,265,547 $ 9,776,009
Colorado 3,905,600 4,482,800
Georgia 6,305,310 7,507,629
Louisiana 1,011,790 4,485,820
Maryland 2,335,143 795,000
Massachusetts 21,058,790 25,146,635
Michigan 13,393,800 13,515,215
Minnesota 24,090,960 25,269,932
Missouri 995,000 3,969,792
New York 10,268,195 13,625,950
Ohio 6,134,775 6,115,795
Oregon 8,095,718 7,677,888
South Carolina 8,300,300 4,764,900
33
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
At March 31, 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 $3,534,681 $2,010,606
Colorado 2,352,804 1,229,418
Georgia 1,883,743 875,033
Louisiana 2,723,683 698,870
Maryland 2,465,914 513,996
Massachusetts 3,669,015 1,386,229
Michigan 6,077,207 789,665
Minnesota 7,872,915 999,667
Missouri 2,072,116 785,222
New York 2,653,783 798,495
Ohio 8,635,505 1,326,973
Oregon 1,954,108 481,179
South Carolina 4,460,164 811,815
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 $ 8,565 $ 64,723
Colorado 3,764 27,725
Georgia 6,911 52,301
Louisiana 5,405 40,776
Maryland 3,567 27,242
Massachusetts 6,678 47,480
Michigan 11,765 88,080
Minnesota 14,727 108,844
Missouri 3,577 28,021
New York 6,657 48,479
Ohio 11,483 86,710
Oregon 6,696 51,987
South Carolina 20,840 150,633
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 six months ended March 31, 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 $48,949 .09%
Colorado 27,136 .10
Georgia 26,521 .09
Louisiana 30,012 .10
Maryland 27,516 .10
Massachusetts 56,932 .10
Michigan 74,618 .10
Minnesota 63,301 .10
Missouri 22,505 .09
New York 41,887 .10
Ohio 83,350 .10
Oregon 29,162 .10
South Carolina 54,682 .10
34
<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 six months ended March 31,
1996, fees paid equivalent to 1% per annum of the average daily net assets of
Class D shares were as follows:
SERIES SERIES
----- ------
National $ 7,093 Minnesota $11,063
Colorado 1,132 Missouri 3,182
Georgia 11,478 New York 4,696
Louisiana 2,057 Ohio 4,112
Maryland 4,617 Oregon 7,914
Massachusetts 5,195 South Carolina 11,381
Michigan 7,998
The Distributor is entitled to retain any CDSL imposed on certain redemptions of
Class D shares occurring within one year of purchase. For the six months ended
March 31, 1996, such charges were as follows:
SERIES SERIES
------ ------
National $1,452 Minnesota $ 10
Georgia 159 Missouri 556
Maryland 50 New York 1,310
Massachusetts 641 Oregon 49
Michigan 250 South Carolina 71
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 six months ended March 31, 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 $ 441 $2,997
Colorado 2,947 1,405
Georgia 60 256
Louisiana -- 324
Maryland 648 659
Massachusetts 137 1,131
Michigan 745 1,103
Minnesota 274 894
Missouri 1,705 1,359
New York 1,169 3,228
Ohio 2,278 1,319
Oregon 307 418
South Carolina 989 742
Seligman Data Corp., which is owned by certain associated investment companies,
charged at cost for shareholder account services the following amounts:
SERIES SERIES
------ ------
National $61,184 Minnesota $86,625
Colorado 35,203 Missouri 33,364
Georgia 41,405 New York 47,738
Louisiana 35,733 Ohio 99,141
Maryland 41,615 Oregon 38,247
Massachusetts 79,534 South Carolina 68,892
Michigan 88,694
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 $26,000 were incurred by the Fund for the legal services of Sullivan &
Cromwell, a member of which firm is a director of the Fund.
35
<PAGE>
================================================================================
NOTES TO FINCIAL 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 cost of such fees
and interest is included in directors' fees and expenses, and the accumulated
balances thereof at March 31, 1996, are as follows:
SERIES SERIES
------ ------
National $15,968 Minnesota $13,431
Colorado 9,707 Missouri 9,708
Georgia 9,045 New York 13,431
Louisiana 10,622 Ohio 13,431
Maryland 10,622 Oregon 9,529
Massachusetts 13,431 South Carolina 9,045
Michigan 12,942
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, 1995, the net loss
carryforwards for the National, Colorado, and New York Series amounted to
$457,352, $268,007, and $48,960, respectively, which are available for offset
against future taxable net gains, expiring in 2003. Accordingly, no capital gain
distributions are expected to be paid to shareholders of the National, Colorado,
and New York Series until net capital gains have been realized in excess of the
available capital loss carryforwards.
36
<PAGE>
================================================================================
--------------------------------------------------------------------------------
6. At March 31, 1996, 40,000,000 shares each were authorized for the National
and Missouri Series; 30,000,000 shares each for the Massachusetts, Michigan,
Minnesota, and Ohio Series; 25,000,000 shares for the Colorado Series; and
20,000,000 shares each for the Georgia, Louisiana, Maryland, New York, Oregon,
and South Carolina Series, all at a par value of $.001 per share.Transactions in
shares of Capital Stock were as follows:
<TABLE>
<CAPTION>
NATIONAL SERIES COLORADO SERIES GEORGIA SERIES
----------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95
----------------------- ----------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A 525,216 390,656 99,054 197,677 175,775 342,804
Class D 51,947 119,342 7,191 14,107 91,356 168,888
Shares issued in payment of dividends:
Class A 179,610 414,132 99,707 226,321 110,992 263,035
Class D 3,102 3,246 337 424 4,958 7,605
Exchanged from associated Funds:
Class A 1,019,414 1,396,452 11,520 73,282 28,390 169,875
Class D 19,655 122,280 258 -- -- 32
Shares issued in payment of gain distributions:
Class A -- -- -- -- 38,308 94,017
Class D -- -- -- -- 1,739 1,780
--------- --------- -------- --------- ------- ---------
Total 1,798,944 2,446,108 218,067 511,811 451,518 1,048,036
--------- --------- -------- --------- ------- ---------
Shares repurchased:
Class A (767,467) (2,610,634) (408,560) (997,269) (619,897) (1,363,466)
Class D (28,051) (14,877) -- (1,468) (13,876) (16,580)
Exchanged into associated Funds:
Class A (1,071,964) (1,359,162) (82,801) (185,668) (93,061) (337,410)
Class D (10,647) (131,648) -- (136) (5,309) (9,351)
--------- --------- -------- --------- ------- ---------
Total (1,878,129) (4,116,321) (491,361) (1,184,541) (732,143) (1,726,807)
--------- --------- -------- --------- ------- ---------
Decrease in shares (79,185) (1,670,213) (273,294) (672,730) (280,625) (678,771)
========= ========= ======= ========= ======= =========
</TABLE>
37
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LOUISIANA SERIES MARYLAND SERIES MASSACHUSETTS SERIES
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A 140,932 203,544 87,769 235,573 179,865 399,337
Class D 6,149 8,145 60,066 46,497 53,447 80,201
Shares issued in payment of dividends:
Class A 98,350 235,011 100,724 222,065 219,487 475,382
Class D 748 2,969 1,850 1,836 1,904 4,357
Exchanged from associated Funds:
Class A -- 32,811 91,056 174,666 90,734 643,216
Class D -- -- -- 1,883 5,961 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 373 1,269 429 737 1,238 618
-------- --------- --------- --------- --------- ---------
Total 285,222 588,693 363,642 784,286 695,468 1,663,780
-------- --------- --------- --------- --------- ---------
Shares repurchased:
Class A (605,748) (660,838) (385,199) (892,644) (680,662) (1,900,781)
Class D (20,026) (43,956) (4,999) (16,759) (24,659) (16,608)
Exchanged into associated Funds:
Class A (53,184) (34,105) (83,565) (192,205) (369,210) (722,628)
Class D (657) -- (1,310) (10,109) -- (108,292)
-------- --------- --------- --------- --------- ---------
Total (679,615) (738,899) (475,073) (1,111,717) (1,074,531) (2,748,309)
-------- --------- --------- --------- --------- ---------
Decrease in shares (394,393) (150,206) (111,431) (327,431) (379,063) (1,084,529)
======== ======= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
MICHIGAN SERIES MINNESOTA SERIES MISSOURI SERIES
----------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95
----------- ----------- ------------ --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A 304,620 757,584 407,560 544,854 97,908 199,885
Class D 56,847 69,200 35,185 111,851 31,128 28,871
Shares issued in payment of dividends:
Class A 283,936 607,709 316,330 681,571 84,691 187,773
Class D 2,631 3,659 5,011 8,190 918 1,688
Exchanged from associated Funds:
Class A 42,243 104,833 50,872 186,606 8,850 49,003
Class D 20,787 12,331 2,138 20,768 4,260 --
Shares issued in payment of gain distributions:
Class A 222,434 75,509 34,629 26,068 40,153 46,811
Class D 2,476 425 596 310 342 458
-------- --------- --------- --------- -------- ---------
Total 935,974 1,631,250 852,321 1,580,218 268,250 514,489
-------- --------- --------- --------- -------- ---------
SHARES REPURCHASED:
Class A (695,476) (1,759,378) (861,846)(1,640,906) (287,267) (829,527)
Class D (30,916) (22,079) (32,027) (35,960) (7,364) (9,384)
Exchanged into associated Funds:
Class A (98,665) (293,434) (125,621) (308,844) (37,241) (108,014)
Class D (12,895) (7,254) (10,098) (32,624) (6,165) (2,017)
-------- ------- ------- --------- -------- ---------
Total (837,952) (2,082,145) (1,029,592)(2,018,334) (338,037) (948,942)
-------- --------- --------- --------- -------- ---------
Increase (decrease) in shares 98,022 (450,895) (177,271) (438,116) (69,787) (434,453)
======== ========= ========= ========= ======== =========
</TABLE>
38
<PAGE>
================================================================================
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK SERIES OHIO SERIES OREGON SERIES
-------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95
----------------------- ----------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A 219,649 759,986 319,669 607,544 240,096 491,549
Class D 9,274 20,328 37,525 35,134 33,009 119,881
Shares issued in payment of dividends:
Class A 153,964 346,619 338,973 742,966 124,061 263,145
Class D 1,831 2,790 1,844 2,142 3,269 5,200
Exchanged from associated Funds:
Class A 176,257 307,438 66,874 100,205 15,627 117,527
Class D 18,524 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 579,499 1,718,742 838,950 1,658,179 425,019 1,013,038
------- --------- --------- --------- -------- ---------
Shares repurchased:
Class A (723,935) (2,115,969) (1,017,348) (2,013,198) (405,093) (827,019)
Class D (24,042) (20,029) (720) (1,314) (28,894) (27,866)
Exchanged into associated Funds:
Class A (132,852) (706,020) (222,955) (340,747) (45,828) (344,772)
Class D (10,091) (980) (1,268) -- (7,878) (15,720)
------- --------- --------- --------- -------- ---------
Total (890,920) (2,842,998) (1,242,291) (2,355,259) (487,693) (1,215,377)
------- --------- --------- --------- -------- ---------
Decrease in shares (311,421) (1,124,256) (403,341) (697,080) (62,674) (202,339)
======= ========= ========= ========= ======== =========
</TABLE>
SOUTH CAROLINA SERIES
----------------------------
SIX MONTHS YEAR
ENDED ENDED
3/31/96 9/30/95
-----------------------
Sale of shares:
Class A 554,130 1,022,961
Class D 82,237 56,814
SHARES ISSUED IN PAYMENT OF DIVIDENDS:
Class A 203,310 444,222
Class D 5,084 7,314
Exchanged from associated Funds:
Class A 75,339 173,490
Class D -- 12,150
Shares issued in payment of gain distributions:
Class A 24,100 22,923
Class D 607 351
--------- ---------
Total 944,807 1,740,225
--------- ---------
Shares repurchased:
Class A (956,897) (2,310,043)
Class D (10,561) (46,819)
Exchanged into associated Funds:
Class A (135,951) (376,197)
Class D (741) (10,186)
--------- ---------
Total (1,104,150) (2,743,245)
--------- ---------
Decrease in shares (159,343) (1,003,020)
========= =========
39
<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 Series' 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 using average shares outstanding. The
total return based on net asset value measures a Series' 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 the Fund. The total returns for periods of
less than one year are not annualized.
<TABLE>
<CAPTION>
NET INCREASE
NET ASSET REALIZED & (DECREASE) DISTRIBUTIONS NET INCREASE NET ASSET
VALUE AT NET UNREALIZED FROM DIVIDENDS FROM (DECREASE) IN VALUE AT
PER SHARE OPERATING BEGINNING INVESTMENT INVESTMENT INVESTMENT PAID OR NET GAIN NET ASSET END
PERFORMANCE: OF PERIOD INCOME* GAIN (LOSS) OPERATIONS DECLARED REALIZED VALUE OF PERIOD
----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
NATIONAL SERIES
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Six months ended 3/31/96 $7.58 $0.20 $0.07 $0.27 $(0.20) $-- $0.07 $7.65
Year ended 9/30/95 7.18 0.40 0.40 0.80 (0.40) -- 0.40 7.58
Year ended 9/30/94 8.72 0.41 (1.04) (0.63) (0.41) (0.50) (1.54) 7.18
Year ended 9/30/93 8.07 0.45 0.78 1.23 (0.45) (0.13) 0.65 8.72
Year ended 9/30/92 7.90 0.48 0.20 0.68 (0.48) (0.03) 0.17 8.07
Year ended 9/30/91 7.44 0.49 0.54 1.03 (0.49) (0.08) 0.46 7.90
COLORADO SERIES
Six months ended 3/31/96 7.30 0.19 (0.01) 0.18 (0.19) -- (0.01) 7.29
Year ended 9/30/95 7.09 0.38 0.21 0.59 (0.38) -- 0.21 7.30
Year ended 9/30/94 7.76 0.37 (0.59) (0.22) (0.37) (0.08) (0.67) 7.09
Year ended 9/30/93 7.34 0.39 0.49 0.88 (0.39) (0.07) 0.42 7.76
Year ended 9/30/92 7.22 0.42 0.12 0.54 (0.42) -- 0.12 7.34
Year ended 9/30/91 6.91 0.44 0.31 0.75 (0.44) -- 0.31 7.22
GEORGIA SERIES
Six months ended 3/31/96 7.81 0.19 0.03 0.22 (0.19) (0.05) (0.02) 7.79
Year ended 9/30/95 7.48 0.39 0.43 0.82 (0.39) (0.10) 0.33 7.81
Year ended 9/30/94 8.43 0.41 (0.86) (0.45) (0.41) (0.09) (0.95) 7.48
Year ended 9/30/93 7.85 0.43 0.62 1.05 (0.43) (0.04) 0.58 8.43
Year ended 9/30/92 7.63 0.46 0.25 0.71 (0.46) (0.03) 0.22 7.85
Year ended 9/30/91 7.18 0.47 0.46 0.93 (0.47) (0.01) 0.45 7.63
LOUISIANA SERIES
Six months ended 3/31/96 8.14 0.21 0.06 0.27 (0.21) (0.06) -- 8.14
Year ended 9/30/95 7.94 0.43 0.34 0.77 (0.43) (0.14) 0.20 8.14
Year ended 9/30/94 8.79 0.44 (0.77) (0.33) (0.44) (0.08) (0.85) 7.94
Year ended 9/30/93 8.38 0.46 0.51 0.97 (0.46) (0.10) 0.41 8.79
Year ended 9/30/92 8.18 0.49 0.24 0.73 (0.49) (0.04) 0.20 8.38
Year ended 9/30/91 7.70 0.50 0.50 1.00 (0.50) (0.02) 0.48 8.18
MARYLAND SERIES
Six months ended 3/31/96 7.96 0.20 -- 0.20 (0.20) (0.03) (0.03) 7.93
Year ended 9/30/95 7.71 0.41 0.38 0.79 (0.41) (0.13) 0.25 7.96
Year ended 9/30/94 8.64 0.42 (0.76) (0.34) (0.42) (0.17) (0.93) 7.71
Year ended 9/30/93 8.15 0.44 0.59 1.03 (0.44) (0.10) 0.49 8.64
Year ended 9/30/92 7.94 0.46 0.24 0.70 (0.46) (0.03) 0.21 8.15
Year ended 9/30/91 7.45 0.47 0.49 0.96 (0.47) -- 0.49 7.94
MASSACHUSETTS SERIES
Six months ended 3/31/96 7.91 0.21 (0.01) 0.20 (0.21) (0.11) (0.12) 7.79
Year ended 9/30/95 7.66 0.42 0.28 0.70 (0.42) (0.03) 0.25 7.91
Year ended 9/30/94 8.54 0.44 (0.67) (0.23) (0.44) (0.21) (0.88) 7.66
Year ended 9/30/93 8.06 0.47 0.55 1.02 (0.47) (0.07) 0.48 8.54
Year ended 9/30/92 7.86 0.49 0.24 0.73 (0.49) (0.04) 0.20 8.06
Year ended 9/30/91 7.26 0.50 0.62 1.12 (0.50) (0.02) 0.60 7.86
--------------------------
See pages 44 and 45 for footnotes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
------------------------------------------------------------------------------------------------------------------------------------
ADJUSTED
RATIO OF
RATIO OF NET ADJUSTED NET
TOTAL RETURN RATIO OF INVESTMENT NET ASSETS ADJUSTED NET RATIO OF INVESTMENT
BASED ON EXPENSES TO INCOME AT END OF INVESTMENT EXPENSES TO INCOME
PER SHARE OPERATING NET ASSET AVERAGE TO AVERAGE PORTFOLIO PERIOD INCOME AVERAGE NET TO AVERAGE
PERFORMANCE: VALUE NET ASSETS* NET ASSETS* TURNOVER (000's OMITTED) PER SHARE* ASSETS* NET ASSETS*
-----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
NATIONAL SERIES
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Six months ended 3/31/96 3.51% 0.82%+ 5.12%+ 9.24% $104,256
Year ended 9/30/95 11.48 0.86 5.46 24.91 104,184
Year ended 9/30/94 (7.83) 0.85 5.30 24.86 111,374
Year ended 9/30/93 16.00 0.86 5.49 72.68 136,394
Year ended 9/30/92 8.84 0.77 6.02 63.99 132,130
Year ended 9/30/91 14.24 0.80 6.35 71.67 136,326
COLORADO SERIES
Six months ended 3/31/96 2.37 0.86+ 5.01+ 7.36 52,722
Year ended 9/30/95 8.56 0.93 5.31 14.70 54,858
Year ended 9/30/94 (2.92) 0.86 5.06 10.07 58,197
Year ended 9/30/93 12.54 0.90 5.21 14.09 67,912
Year ended 9/30/92 7.74 0.81 5.81 23.22 64,900
Year ended 9/30/91 11.15 0.84 6.19 14.60 64,310
GEORGIA SERIES
Six months ended 3/31/96 2.84 0.86+ 4.81+ 10.90 54,716
Year ended 9/30/95 11.66 0.91 5.26 3.36 57,678 $0.39 0.96% 5.21%
Year ended 9/30/94 (5.52) 0.73 5.21 19.34 61,466 0.40 0.93 5.01
Year ended 9/30/93 13.96 0.63 5.34 12.45 64,650 0.40 0.93 5.04
Year ended 9/30/92 9.64 0.47 5.95 10.24 44,585 0.43 0.87 5.55
Year ended 9/30/91 13.30 0.59 6.30 6.07 28,317 0.43 1.09 5.80
LOUISIANA SERIES
Six months ended 3/31/96 3.34 0.84+ 5.12+ 1.66 58,901
Year ended 9/30/95 10.30 0.89 5.44 4.82 61,988
Year ended 9/30/94 (3.83) 0.87 5.31 17.16 61,441
Year ended 9/30/93 12.10 0.87 5.40 9.21 67,529
Year ended 9/30/92 9.13 0.80 5.89 25.45 57,931
Year ended 9/30/91 13.49 0.83 6.31 20.85 50,089
MARYLAND SERIES
Six months ended 3/31/96 2.53 0.87+ 4.96+ 1.44 54,733
Year ended 9/30/95 10.90 0.96 5.31 3.63 56,290
Year ended 9/30/94 (4.08) 0.92 5.17 17.68 57,263
Year ended 9/30/93 13.23 0.97 5.28 14.10 64,472
Year ended 9/30/92 9.15 0.86 5.76 29.57 57,208
Year ended 9/30/91 13.26 0.88 6.09 18.84 54,068
MASSACHUSETTS SERIES
Six months ended 3/31/96 2.40 0.83+ 5.15+ 18.67 110,796
Year ended 9/30/95 9.58 0.86 5.51 16.68 115,711
Year ended 9/30/94 (2.94) 0.85 5.46 12.44 120,149
Year ended 9/30/93 13.18 0.88 5.65 20.66 139,504
Year ended 9/30/92 9.75 0.77 6.27 27.92 128,334
Year ended 9/30/91 15.84 0.83 6.64 14.37 118,022
--------------------------
See pages 44 and 45 for footnotes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
FINANCIAL HIGHLIGHTS (continued)
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE
NET ASSET REALIZED & (DECREASE) DISTRIBUTIONS NET INCREASE NET ASSET
VALUE AT NET UNREALIZED FROM DIVIDENDS FROM (DECREASE) IN VALUE AT
PER SHARE OPERATING BEGINNING INVESTMENT INVESTMENT INVESTMENT PAID OR NET GAIN NET ASSET END
PERFORMANCE: OF PERIOD INCOME* GAIN (LOSS) OPERATIONS DECLARED REALIZED VALUE OF PERIOD
--------------------------------------------------------------------------------------------------------------------------------
MICHIGAN SERIES
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Six months ended 3/31/96 $8.54 $0.22 $0.01 $0.23 $(0.22) $(0.14) $(0.13) $8.41
Year ended 9/30/95 8.28 0.46 0.30 0.76 (0.46) (0.04) 0.26 8.54
Year ended 9/30/94 9.08 0.46 (0.71) (0.25) (0.46) (0.09) (0.80) 8.28
Year ended 9/30/93 8.68 0.47 0.59 1.06 (0.47) (0.19) 0.40 9.08
Year ended 9/30/92 8.38 0.50 0.35 0.85 (0.50) (0.05) 0.30 8.68
Year ended 9/30/91 7.89 0.51 0.51 1.02 (0.51) (0.02) 0.49 8.38
MINNESOTA SERIES
Six months ended 3/31/96 7.82 0.22 (0.12) 0.10 (0.22) (0.02) (0.14) 7.68
Year ended 9/30/95 7.72 0.45 0.11 0.56 (0.45) (0.01) 0.10 7.82
Year ended 9/30/94 8.28 0.45 (0.44) (0.01) (0.45) (0.12) (0.56) 7.72
Year ended 9/30/93 7.89 0.47 0.51 0.98 (0.47) (0.12) 0.39 8.28
Year ended 9/30/92 7.81 0.49 0.09 0.58 (0.49) (0.01) 0.08 7.89
Year ended 9/30/91 7.49 0.49 0.32 0.81 (0.49) -- 0.32 7.81
MISSOURI SERIES
Six months ended 3/31/96 7.70 0.20 -- 0.20 (0.20) (0.07) (0.07) 7.63
Year ended 9/30/95 7.41 0.40 0.36 0.76 (0.40) (0.07) 0.29 7.70
Year ended 9/30/94 8.31 0.40 (0.79) (0.39) (0.40) (0.11) (0.90) 7.41
Year ended 9/30/93 7.80 0.42 0.57 0.99 (0.42) (0.06) 0.51 8.31
Year ended 9/30/92 7.72 0.44 0.15 0.59 (0.44) (0.07) 0.08 7.80
Year ended 9/30/91 7.22 0.46 0.50 0.96 (0.46) -- 0.50 7.72
NEW YORK SERIES
Six months ended 3/31/96 7.86 0.21 0.06 0.27 (0.21) -- 0.06 7.92
Year ended 9/30/95 7.67 0.42 0.36 0.78 (0.42) (0.17) 0.19 7.86
Year ended 9/30/94 8.75 0.43 (0.88) (0.45) (0.43) (0.20) (1.08) 7.67
Year ended 9/30/93 8.13 0.45 0.74 1.19 (0.45) (0.12) 0.62 8.75
Year ended 9/30/92 7.94 0.49 0.26 0.75 (0.49) (0.07) 0.19 8.13
Year ended 9/30/91 7.40 0.50 0.54 1.04 (0.50) -- 0.54 7.94
OHIO SERIES
Six months ended 3/31/96 8.11 0.22 (0.03) 0.19 (0.22) (0.04) (0.07) 8.04
Year ended 9/30/95 7.90 0.44 0.28 0.72 (0.44) (0.07) 0.21 8.11
Year ended 9/30/94 8.77 0.44 (0.70) (0.26) (0.44) (0.17) (0.87) 7.90
Year ended 9/30/93 8.28 0.46 0.56 1.02 (0.46) (0.07) 0.49 8.77
Year ended 9/30/92 8.06 0.49 0.26 0.75 (0.49) (0.04) 0.22 8.28
Year ended 9/30/91 7.62 0.51 0.45 0.96 (0.51) (0.01) 0.44 8.06
OREGON SERIES
Six months ended 3/31/96 7.66 0.20 (0.04) 0.16 (0.20) (0.01) (0.05) 7.61
Year ended 9/30/95 7.43 0.40 0.25 0.65 (0.40) (0.02) 0.23 7.66
Year ended 9/30/94 8.08 0.40 (0.59) (0.19) (0.40) (0.06) (0.65) 7.43
Year ended 9/30/93 7.60 0.42 0.48 0.90 (0.42) -- 0.48 8.08
Year ended 9/30/92 7.42 0.42 0.18 0.60 (0.42) -- 0.18 7.60
Year ended 9/30/91 6.96 0.44 0.46 0.90 (0.44) -- 0.46 7.42
SOUTH CAROLINA SERIES
Six months ended 3/31/96 7.97 0.21 0.04 0.25 (0.21) (0.02) 0.02 7.99
Year ended 9/30/95 7.61 0.41 0.37 0.78 (0.41) (0.01) 0.36 7.97
Year ended 9/30/94 8.52 0.41 (0.79) (0.38) (0.41) (0.12) (0.91) 7.61
Year ended 9/30/93 8.00 0.43 0.54 0.97 (0.43) (0.02) 0.52 8.52
Year ended 9/30/92 7.71 0.45 0.31 0.76 (0.45) (0.02) 0.29 8.00
Year ended 9/30/91 7.23 0.46 0.52 0.98 (0.46) (0.04) 0.48 7.71
--------------------------
See pages 44 and 45 for footnotes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
------------------------------------------------------------------------------------------------------------------------------------
ADJUSTED
RATIO OF NET ADJUSTED RATIO OF
TOTAL RETURN RATIO OF INVESTMENT NET ASSETS ADJUSTED NET RATIO OF NET INVESTMENT
BASED ON EXPENSES TO INCOME AT END OF INVESTMENT EXPENSES TO INCOME
PER SHARE OPERATING NET ASSET AVERAGE TO AVERAGE PORTFOLIO PERIOD INCOME AVERAGE NET TO AVERAGE
PERFORMANCE: VALUE NET ASSETS* NET ASSETS* TURNOVER (000's OMITTED) PER SHARE* ASSETS* NET ASSETS*
----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN SERIES
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Six months ended 3/31/96 2.74% 0.80%+ 5.20%+ 8.85% $149,642
Year ended 9/30/95 9.56 0.87 5.50 20.48 151,589
Year ended 9/30/94 (2.90) 0.84 5.32 10.06 151,095
Year ended 9/30/93 12.97 0.83 5.41 6.33 164,638
Year ended 9/30/92 10.55 0.76 5.93 32.12 144,524
Year ended 9/30/91 13.34 0.80 6.28 22.81 129,004
MINNESOTA SERIES
Six months ended 3/31/96 1.22 0.82+ 5.54+ 18.85 128,935
Year ended 9/30/95 7.61 0.87 5.89 5.57 132,716
Year ended 9/30/94 0.12 0.85 5.70 3.30 134,990
Year ended 9/30/93 13.06 0.90 5.89 5.73 144,600
Year ended 9/30/92 7.71 0.80 6.29 12.08 151,922
Year ended 9/30/91 11.10 0.80 6.28 2.61 182,979
MISSOURI SERIES
Six months ended 3/31/96 2.53 0.86+ 4.99+ 1.98 50,018
Year ended 9/30/95 10.67 0.88 5.31 3.88 51,169 $0.39 0.93% 5.26%
Year ended 9/30/94 (4.85) 0.74 5.18 14.33 52,621 0.39 0.88 5.04
Year ended 9/30/93 13.17 0.71 5.29 17.03 56,861 0.41 0.91 5.09
Year ended 9/30/92 7.87 0.83 5.71 18.80 49,459
Year ended 9/30/91 13.61 0.88 6.10 16.30 47,659
NEW YORK SERIES
Six months ended 3/31/96 3.36 0.82+ 5.12+ 12.10 82,104
Year ended 9/30/95 10.93 0.88 5.52 34.05 83,980
Year ended 9/30/94 (5.37) 0.87 5.31 28.19 90,914
Year ended 9/30/93 15.26 0.94 5.37 27.90 104,685
Year ended 9/30/92 9.80 0.79 6.09 42.90 92,681
Year ended 9/30/91 14.56 0.80 6.57 44.57 83,684
OHIO SERIES
Six months ended 3/31/96 2.25 0.80+ 5.31+ 3.62 165,119
Year ended 9/30/95 9.59 0.84 5.56 2.96 170,191
Year ended 9/30/94 (3.08) 0.84 5.34 9.37 171,469
Year ended 9/30/93 12.81 0.85 5.44 30.68 190,083
Year ended 9/30/92 9.68 0.75 6.02 7.15 170,427
Year ended 9/30/91 12.96 0.77 6.42 13.95 156,179
OREGON SERIES
Six months ended 3/31/96 2.02 0.86+ 5.15+ 12.62 58,674
Year ended 9/30/95 9.05 0.86 5.40 2.47 59,549 0.40 0.91 5.35
Year ended 9/30/94 (2.38) 0.78 5.20 9.43 59,884 0.39 0.89 5.09
Year ended 9/30/93 12.21 0.78 5.35 8.08 62,095 0.41 0.93 5.20
Year ended 9/30/92 8.35 0.68 5.63 0.21 48,797 0.42 0.83 5.48
Year ended 9/30/91 13.25 0.71 6.06 7.60 39,350 0.42 0.91 5.86
SOUTH CAROLINA SERIES
Six months ended 3/31/96 3.03 0.81+ 5.08+ 4.16 110,811
Year ended 9/30/95 10.69 0.88 5.38 4.13 112,421
Year ended 9/30/94 (4.61) 0.83 5.12 1.81 115,133
Year ended 9/30/93 12.52 0.85 5.19 17.69 120,589
Year ended 9/30/92 10.08 0.81 5.71 3.37 82,882
Year ended 9/30/91 13.95 0.81 6.14 9.05 63,863 0.45 0.91 6.04
--------------------------
See pages 44 and 45 for footnotes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
FINANCIAL HIGHLIGHTS (continued)
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE
NET ASSET REALIZED & (DECREASE) DISTRIBUTIONS NET INCREASE NET ASSET
VALUE AT NET UNREALIZED FROM DIVIDENDS FROM (DECREASE) IN VALUE AT
PER SHARE OPERATING BEGINNING INVESTMENT INVESTMENT INVESTMENT PAID OR NET GAIN NET ASSET END
PERFORMANCE: OF PERIOD INCOME* GAIN (LOSS) OPERATIONS DECLARED REALIZED VALUE OF PERIOD
-------------------------------------------------------------------------------------------------------------------------------
CLASS D SHARES:
NATIONAL SERIES
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Six months ended 3/31/96 $7.57 $0.16 $0.07 $0.23 $(0.16) $ -- $0.07 $7.64
Year ended 9/30/95 7.18 0.32 0.39 0.71 (0.32) -- 0.39 7.57
2/1/94** to 9/30/94 8.20 0.22 (1.02) (0.80) (0.22) -- (1.02) 7.18
COLORADO SERIES
Six months ended 3/31/96 7.29 0.15 (0.01) 0.14 (0.15) -- (0.01) 7.28
Year ended 9/30/95 7.09 0.30 0.20 0.50 (0.30) -- 0.20 7.29
2/1/94** TO 9/30/94 7.72 0.20 (0.63) (0.43) (0.20) -- (0.63) 7.09
GEORGIA SERIES
Six months ended 3/31/96 7.82 0.16 0.03 0.19 (0.16) (0.05) (0.02) 7.80
Year ended 9/30/95 7.49 0.32 0.43 0.75 (0.32) (0.10) 0.33 7.82
2/1/94** to 9/30/94 8.33 0.22 (0.84) (0.62) (0.22) -- (0.84) 7.49
LOUISIANA SERIES
Six months ended 3/31/96 8.14 0.18 0.06 0.24 (0.18) (0.06) -- 8.14
Year ended 9/30/95 7.94 0.35 0.34 0.69 (0.35) (0.14) 0.20 8.14
2/1/94** TO 9/30/94 8.73 0.24 (0.79) (0.55) (0.24) -- (0.79) 7.94
MARYLAND SERIES
Six months ended 3/31/96 7.97 0.16 -- 0.16 (0.16) (0.03) (0.03) 7.94
Year ended 9/30/95 7.72 0.33 0.38 0.71 (0.33) (0.13) 0.25 7.97
2/1/94** TO 9/30/94 8.46 0.23 (0.74) (0.51) (0.23) -- (0.74) 7.72
MASSACHUSETTS SERIES
Six months ended 3/31/96 7.90 0.17 -- 0.17 (0.17) (0.11) (0.11) 7.79
Year ended 9/30/95 7.66 0.34 0.27 0.61 (0.34) (0.03) 0.24 7.90
2/1/94** TO 9/30/94 8.33 0.24 (0.67) (0.43) (0.24) -- (0.67) 7.66
MICHIGAN SERIES
Six months ended 3/31/96 8.54 0.19 -- 0.19 (0.19) (0.14) (0.14) 8.40
Year ended 9/30/95 8.28 0.37 0.30 0.67 (0.37) (0.04) 0.26 8.54
2/1/94** TO 9/30/94 9.01 0.25 (0.73) (0.48) (0.25) -- (0.73) 8.28
MINNESOTA SERIES
Six months ended 3/31/96 7.82 0.18 (0.12) 0.06 (0.18) (0.02) (0.14) 7.68
Year ended 9/30/95 7.73 0.38 0.10 0.48 (0.38) (0.01) 0.09 7.82
2/1/94** TO 9/30/94 8.22 0.25 (0.49) (0.24) (0.25) -- (0.49) 7.73
MISSOURI SERIES
Six months ended 3/31/96 7.70 0.16 0.01 0.17 (0.16) (0.07) (0.06) 7.64
Year ended 9/30/95 7.41 0.32 0.36 0.68 (0.32) (0.07) 0.29 7.70
2/1/94** TO 9/30/94 8.20 0.22 (0.79) (0.57) (0.22) -- (0.79) 7.41
NEW YORK SERIES
Six months ended 3/31/96 7.87 0.17 0.06 0.23 (0.17) -- 0.06 7.93
Year ended 9/30/95 7.67 0.34 0.37 0.71 (0.34) (0.17) 0.20 7.87
2/1/94** TO 9/30/94 8.55 0.23 (0.88) (0.65) (0.23) -- (0.88) 7.67
OHIO SERIES
Six months ended 3/31/96 8.15 0.18 (0.03) 0.15 (0.18) (0.04) (0.07) 8.08
Year ended 9/30/95 7.92 0.36 0.30 0.66 (0.36) (0.07) 0.23 8.15
2/1/94** TO 9/30/94 8.61 0.24 (0.69) (0.45) (0.24) -- (0.69) 7.92
OREGON SERIES
Six months ended 3/31/96 7.65 0.16 (0.04) 0.12 (0.16) (0.01) (0.05) 7.60
Year ended 9/30/95 7.43 0.33 0.24 0.57 (0.33) (0.02) 0.22 7.65
2/1/94** TO 9/30/94 8.02 0.22 (0.59) (0.37) (0.22) -- (0.59) 7.43
SOUTH CAROLINA SERIES
Six months ended 3/31/96 7.97 0.17 0.03 0.20 (0.17) (0.02) 0.01 7.98
Year ended 9/30/95 7.61 0.34 0.37 0.71 (0.34) (0.01) 0.36 7.97
2/1/94** to 9/30/94 8.42 0.22 (0.81) (0.59) (0.22) -- (0.81) 7.61
</TABLE>
--------------------
*During the periods stated, the Manager, at its discretion, waived all or
portions of its fees for the Georgia, Missouri, Oregon, and South Carolina
Series. The adjusted net investment income per share and adjusted ratios
reflect what the results would have been had the Manager not waived its fees.
**Commencement of offering of Class D shares.
+Annualized.
++For the year ended 9/30/94.
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
------------------------------------------------------------------------------------------------------------------------------------
ADJUSTED
RATIO OF
RATIO OF NET ADJUSTED NET
TOTAL RETURN RATIO OF INVESTMENT NET ASSETS ADJUSTED NET RATIO OF INVESTMENT
BASED ON EXPENSES TO INCOME AT END OF INVESTMENT EXPENSES TO INCOME
PER SHARE OPERATING NET ASSET AVERAGE TO AVERAGE PORTFOLIO PERIOD INCOME AVERAGE NET TO AVERAGE
PERFORMANCE: VALUE NET ASSETS* NET ASSETS* TURNOVER (000's OMITTED) PER SHARE* ASSETS* NET ASSETS*
------------------------------------------------------------------------------------------------------------------------------------
CLASS D SHARES:
NATIONAL SERIES
<S> <C> <C> <C> <C> <C>
Six months ended 3/31/96 3.04% 1.73%+ 4.21%+ 9.24% $1,502
Year ended 9/30/95 10.17 1.95 4.40 24.91 1,215
2/1/94** to 9/30/94 (9.96) 1.76 4.37 24.86++ 446
COLORADO SERIES
Six months ended 3/31/96 1.91 1.76+ 4.11+ 7.36 249
Year ended 9/30/95 7.26 2.02 4.23 14.70 193
2/1/94** TO 9/30/94 (5.73) 1.78 4.05 10.07++ 96
GEORGIA SERIES
Six months ended 3/31/96 2.38 1.77+ 3.90+ 10.90 2,688
Year ended 9/30/95 10.58 1.90 4.28 3.36 2,079 $0.31 1.95% 4.23%
2/1/94** to 9/30/94 (7.57) 1.76 4.28 19.34++
849 0.21 1.90+ 4.15+
LOUISIANA SERIES
Six months ended 3/31/96 2.88 1.74+ 4.22+ 1.66 356
Year ended 9/30/95 9.17 1.91 4.41 4.82 465
2/1/94** TO 9/30/94 (6.45) 1.78 4.33 17.16++ 704
MARYLAND SERIES
Six months ended 3/31/96 2.07 1.77+ 4.06+ 1.44 1,072
Year ended 9/30/95 9.75 2.02 4.27 3.63 630
2/1/94** TO 9/30/94 (6.21) 1.80 4.26 17.68++ 424
MASSACHUSETTS SERIES
Six months ended 3/31/96 2.08 1.73+ 4.25+ 18.67 1,173
Year ended 9/30/95 8.33 1.95 4.47 16.68 890
2/1/94** TO 9/30/94 (5.34) 1.78 4.52 12.44++ 1,099
MICHIGAN SERIES
Six months ended 3/31/96 2.15 1.70+ 4.30+ 8.85 1,480
Year ended 9/30/95 8.36 2.01 4.40 20.48 1,172
2/1/94** TO 9/30/94 (5.47) 1.75 4.40 10.06++ 671
MINNESOTA SERIES
Six months ended 3/31/96 0.77 1.72+ 4.64+ 18.85 2,202
Year ended 9/30/95 6.45 1.85 4.92 5.57 2,237
2/1/94** TO 9/30/94 (3.08) 1.74 4.68 3.30++ 1,649
MISSOURI SERIES
Six months ended 3/31/96 2.20 1.77+ 4.08+ 1.98 687
Year ended 9/30/95 9.49 1.98 4.23 3.88 515 0.32 2.03 4.18
2/1/94** TO 9/30/94 (7.16) 1.70 4.27 14.33++ 350 0.22 1.80+ 4.17+
NEW YORK SERIES
Six months ended 3/31/96 2.89 1.72+ 4.22+ 12.10 856
Year ended 9/30/95 9.87 1.96 4.42 34.05 885
2/1/94** TO 9/30/94 (7.73) 1.81 4.39 28.19++ 476
OHIO SERIES
Six months ended 3/31/96 1.80 1.71+ 4.40+ 3.62 963
Year ended 9/30/95 8.67 1.93 4.48 2.96 660
2/1/94** TO 9/30/94 (5.36) 1.78 4.41 9.37++ 324
OREGON SERIES
Six months ended 3/31/96 1.57 1.76+ 4.25+ 12.62 1,504
Year ended 9/30/95 7.86 1.83 4.41 2.47 1,495 0.33 1.88 4.36
2/1/94** TO 9/30/94 (4.76) 1.72 4.32 9.43++ 843 0.22 1.82+ 4.22+
SOUTH CAROLINA SERIES
Six months ended 3/31/96 2.44 1.71+ 4.18+ 4.16 2,320
Year ended 9/30/95 9.63 1.85 4.40 4.13 1,704
2/1/94** to 9/30/94 (7.14) 1.74 4.29 1.81++ 1,478
</TABLE>
--------------------
*During the periods stated, the Manager, at its discretion, waived all or
portions of its fees for the Georgia, Missouri, Oregon, and South Carolina
Series. The adjusted net investment income per share and adjusted ratios
reflect what the results would have been had the Manager not waived its fees.
**Commencement of offering of Class D shares.
+Annualized.
++For the year ended 9/30/94.
See notes to financial statements.
<PAGE>
================================================================================
REPORT OF INDEPENDENT AUDITORS
--------------------------------------------------------------------------------
The Board of Directors and Shareholders,
Seligman Tax-Exempt 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 Tax-Exempt Fund Series, Inc. as of March
31, 1996, the related statements of operations for the six months then ended and
of changes in net assets for the six months then ended and for the year ended
September 30, 1995, 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 March
31, 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 Tax-Exempt Fund Series, Inc. as of March 31, 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.
DELOITTE & TOUCHE LLP
New York, New York
May 3, 1996
<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
Vice President, Pfizer Inc.
Director, USLIFE Corporation
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
---------------------
Member:
1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
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
<PAGE>
SELIGMAN FINANCIAL SERVICES, INC.
an affiliate of
[GRAPHIC OMITTED]
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 Tax-Exempt 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.
TEA3 3/96
===============================================================================
MID-YEAR REPORT
SELIGMAN
TAX-EXEMPT
FUND
SERIES, INC.
March 31, 1996
Providing Tax-Free Income
Since 1983
