================================================================================
MID-YEAR REPORT
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SELIGMAN
MUNICIPAL
FUND
SERIES, INC.
- --------------------------------------------------------------------------------
MARCH 31, 1997
[LOGO]
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Providing Income
Free From Regular Income Tax
Since 1983
[LOGO]
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of Capital Stock of
Seligman Municipal Fund Series, Inc., which contains information about the sales
charges, management fees, and other costs. Please read the prospectus carefully
before investing or sending money.
TEA3 3/97
<PAGE>
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TO THE SHAREHOLDERS
================================================================================
The possibility that the Federal Reserve Board would increase the federal funds
rate caused an upward trend in yields, reducing the prices of municipal
securities in the first quarter of 1997. As a result, Seligman Municipal Fund
Series' net asset values declined slightly. However, Seligman Municipal Fund
Series continued to provide monthly income free from regular income tax to its
Shareholders during the period. The Fund's investment results begin on page 2.
During the last six months, the economy continued its expansion without
provoking a significant increase in inflationary pressures. Nonetheless, on
March 25, the Fed increased the fed funds rate -- the interest rate charged for
interbank loans -- from 5.25% to 5.50%, due to concerns that strong consumer
demand could be enough to fuel higher levels of inflation in the near future.
The near-term result of the Fed's action has been an increase in the yields
of fixed-income securities, regardless of maturities. The Bond Buyer 20-Bond
General Obligation Index, a benchmark for the municipal market, moved slightly
higher over the course of the period, from 5.76% on September 30, 1996, to 5.81%
on March 31, 1997.
The current uncertainty about the direction of the economy has caused bearish
sentiment in the municipal bond market, and market participants remain alert for
any signs of a resurgence in inflation, which could prompt another Fed move.
Nevertheless, municipal securities continue to outperform other fixed-income
investments.
The financial markets may remain unsettled in the short term until the effect
of the Fed's action on the economy becomes clearer. However, economic
fundamentals remain encouraging, and we believe that the municipal bond market
will stabilize over time, while continuing to provide investors with attractive
taxable-equivalent yields.
On a final note, we have regretfully accepted Fred E. Brown's decision to
formally retire from your Fund's Board of Directors. Mr. Brown has been elected
Director Emeritus of the Board, and Seligman Municipal Fund Series will still be
able to benefit from his invaluable advice and counsel. Mr. Brown, who was
Chairman and CEO of J. & W. Seligman & Co. from 1965 to 1988, and Chairman of
the Board of your Fund from 1984 to 1988, has served with unparalleled
dedication for nearly 60 years.
A discussion with your Portfolio Manager, portfolio holdings, and financial
statements follow this letter.
We thank you for your continued interest in Seligman Municipal Fund Series,
and look forward to serving your investment needs in the many years to come.
By order of the Board of Directors,
/s/ William C. Morris
- ---------------------
William C. Morris
Chairman
/s/ Brian T. Zino
-----------------
Brian T. Zino
President
May 2, 1997
1
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SELIGMAN MUNICIPAL FUND SERIES, INC.
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INVESTMENT RESULTS March 31, 1997
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NATIONAL COLORADO GEORGIA LOUISIANA MARYLAND MASSACHUSETTS
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<S> <C> <C> <C> <C> <C> <C>
NET ASSETS (in millions)
Class A $95.0 $49.2 $48.4 $55.2 $52.5 $103.4
Class D 2.0 0.2 2.3 0.4 1.9 1.5
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YIELD*
Class A 4.70% 4.17% 4.56% 4.57% 4.53% 4.64%
Class D 3.99 3.47 3.87 3.88 3.83 3.96
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DIVIDENDS**
Class A $0.197 $0.184 $0.191 $0.207 $0.199 $0.201
Class D 0.161 0.151 0.156 0.170 0.163 0.165
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CAPITAL GAIN DISTRIBUTIONS** -- -- $0.028 $0.108 $0.042 $0.077
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL
RETURN
Class A
One Year
With sales charge(1) 0.06% (0.43)% 0.14% 0.05% (0.24)% 0.12%
Without sales charge(2) 5.03 4.49 5.16 5.08 4.79 5.14
Five Years
With sales charge(1) 5.49 4.97 5.73 5.47 5.53 5.56
Without sales charge(2) 6.52 6.01 6.77 6.51 6.55 6.59
Ten Years or since inception 6/15/87
With sales charge(1) 6.24 5.83 6.96 6.50 6.29 6.27
Without sales charge(2) 6.75 6.35 7.50 7.03 6.81 6.79
Class D
One Year
With CDSL(1) 3.20 2.55 3.36 3.16 2.85 3.20
Without CDSL(2) 4.20 3.54 4.35 4.14 3.84 4.19
Since inception February 1, 1994(2) 2.01 2.07 2.82 2.89 2.79 2.78
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NET ASSET VALUE PER SHARE
Class A $7.63 $7.24 $7.77 $8.02 $7.86 $7.70
Class D 7.63 7.23 7.79 8.02 7.87 7.70
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MAXIMUM OFFERING PRICE
PER SHARE
Class A $8.01 $7.60 $8.16 $8.42 $8.25 $8.08
Class D 7.63 7.23 7.79 8.02 7.87 7.70
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MOODY'S/S&P RATINGS+
Aaa/AAA 24% 49% 36% 79% 35% 43%
Aa/AA 46 36 35 13 39 25
A/A 23 10 23 6 24 25
Baa/BBB 4 4 6 2 2 4
Non-rated 3 1 -- -- -- 3
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HOLDINGS BY MARKET SECTOR+
Revenue Bonds 82% 77% 65% 81% 77% 84%
General Obligation Bonds 18 23 35 19 23 16
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WEIGHTED AVERAGE MATURITY
(Years) 26.8 18.3 19.9 20.1 22.1 21.1
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2
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------------------------------------------------------------------------------------------------
MICHIGAN MINNESOTA MISSOURI NEW YORK OHIO OREGON SOUTH CAROLINA
------------------------------------------------------------------------------------------------
NET ASSETS (in millions)
<S> <C> <C> <C> <C> <C> <C> <C>
Class A $141.4 $123.2 $ 52.2 $79.6 $153.5 $ 54.2 $101.3
Class D 1.5 1.8 0.4 1.2 1.0 1.4 3.2
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YIELD*
Class A 4.69% 3.96% 4.28% 4.73% 4.56% 4.48% 4.61%
Class D 4.01 3.24 3.58 4.04 3.87 3.80 3.92
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS**
Class A $0.219 $0.201 $0.189 $0.204 $0.210 $0.188 $0.203
Class D 0.181 0.166 0.154 0.168 0.175 0.153 0.167
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GAIN DISTRIBUTIONS** $0.091 -- $0.084 $0.021 $0.070 $0.041 $0.125
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL
RETURN
Class A
One Year
With sales charge(1) 0.04% (0.32)% 0.01% 0.15% 0.02% 0.19% 0.15%
Without sales charge(2) 5.03 4.61 4.99 5.09 5.00 5.19 5.16
Five Years
With sales charge(1) 5.69 5.26 5.11 5.92 5.41 5.14 5.38
Without sales charge(2) 6.73 6.30 6.14 6.95 6.44 6.17 6.42
Ten Years or since inception 6/30/87
With sales charge(1) 6.59 5.95 6.23 6.35 6.47 6.08 6.98
Without sales charge(2) 7.11 6.47 6.74 6.86 6.99 6.60 7.52
Class D
One Year
With CDSL(1) 3.24 2.68 2.95 3.13 3.07 3.26 3.37
Without CDSL(2) 4.22 3.67 3.93 4.13 4.06 4.25 4.35
Since inception February 1, 1994(2) 2.78 2.40 2.46 2.65 2.75 2.70 2.71
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A $8.29 $7.62 $7.54 $7.88 $7.94 $7.57 $7.86
Class D 8.29 7.62 7.54 7.89 7.98 7.56 7.86
- ------------------------------------------------------------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE
PER SHARE
Class A $8.70 $8.00 $7.92 $8.27 $8.34 $7.95 $8.25
Class D 8.29 7.62 7.54 7.89 7.98 7.56 7.86
- ------------------------------------------------------------------------------------------------------------------------------------
MOODY'S/S&P RATINGS+
Aaa/AAA 52% 40% 48% 47% 71% 39% 65%
Aa/AA 20 38 35 9 16 28 12
A/A 24 19 17 22 7 23 22
Baa/BBB -- -- -- 22 3 10 1
Non-rated 4 3 -- -- 3 -- --
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HOLDINGS BY MARKET SECTOR+
Revenue Bonds 81% 46% 84% 95% 76% 71% 89%
General Obligation Bonds 19 54 16 5 24 29 11
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WEIGHTED AVERAGE MATURITY
(Years) 21.5 16.7 18.5 26.1 19.5 19.4 19.6
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</TABLE>
The performance of Class D shares will be greater than or less than the
performance shown for Class A shares, based on differences in sales charges and
fees paid by shareholders.
* Current yield represents the annualized yield for the 30-day period ended
March 31, 1997.
** Represents per share amount paid or declared with respect to Class A and
Class D shares during the six months ended March 31, 1997.
(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 invested 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 commencement date for the annual
Administration, Shareholder Services and Distribution Plan fee of up to 0.25%
of average daily net assets of each Series.
(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 and any amount may be subject to the federal
alternative minimum tax. Past performance is not indicative of future investment
results.
3
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INTERVIEW WITH YOUR PORTFOLIO MANAGER, THOMAS G. MOLES
- --------------------------------------------------------------------------------
- --------------------------------
[PHOTO]
- --------------------------------
Seligman Municipals Team:(from left) Audrey Kuchtyak, Theresa Barion, Debra
McGuinness, (seated) Eileen Comerford, Thomas G. Moles (Portfolio Manager)
WHAT ECONOMIC AND MARKET FACTORS AFFECTED SELIGMAN MUNICIPAL FUND SERIES IN THE
PAST SIX MONTHS?
"For most of 1996 and up to the present, the municipal bond market has
outperformed other fixed-income markets, due largely to an imbalance in supply
and demand. Heavy bond calls and redemptions resulted in a decrease in the
outstanding municipal bond supply, while positive municipal fundamentals led to
a modest improvement in investor demand. During the month of March, however,
long-term municipal yields began to rise due to an increase in economic growth
and the Federal Reserve Board's resulting attempt to contain it by raising the
federal funds rate. Overall, the higher-yield environment caused a modest
decline in Seligman Municipal Fund Series' net asset values in the first quarter
of 1997. Nonetheless, the continued health of the US economy helped improve the
financial status of many municipal issuers in the last six months, including
issues held by the Fund. If the economy remains on track, this trend could
continue."
WHAT WAS YOUR INVESTMENT STRATEGY?
"During the past six months, our outlook for the municipal market remained
positive. Investment strategy was based on the assumption that long-term yields
would continue to fluctuate within a narrow range. In this environment, Seligman
Municipal Fund Series' performance was primarily due to coupon income rather
than price appreciation. Therefore, portfolio purchases were concentrated in
current coupon bonds, in an effort to maximize coupon returns in the expected
absence of price appreciation.
"We believe that the rise in yields seen in March will be short-lived, and
we view the current market environment as a buying opportunity. We have been
committing cash, where appropriate, to the purchase of longer-term, quality
municipal bonds. While rising interest rates generally have a negative impact on
municipal bond prices and on Seligman Municipal Fund Series' performance,
opportunities to enhance returns exist in all markets. Through active
professional management, we are able to identify undervalued or improving
situations that can benefit the portfolios, regardless of the direction of
interest rates."
WHAT IS YOUR OUTLOOK?
"The fixed-income markets may remain unsettled in the near term until investors
become satisfied that the fed has achieved its objectives. Ultimately, we
anticipate that confidence in the market will be restored, and that long-term
municipal yields will settle back into a narrow trading range. Additionally, new
issue volume in the municipal market is not expected to vary significantly from
last year, and this predictable supply of bonds should add stability to the
marketplace. We are confident that seligman municipal fund series will continue
to play an important role in helping investors meet their long-term financial
goals."
4
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PORTFOLIOS OF INVESTMENTS March 31, 1997
____________________________________________________________________________________________________________________________________
NATIONAL SERIES
<S> <C> <C> <C> <C>
FACE RATINGS MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- ----------- --------------------- ----------------- -------------
ALASKA-- 4.7% $5,000,000 Valdez Marine Terminal Rev. (BP Pipeline Inc. Project),
5 1/2% due 10/1/2028 ......................................... Aa2/AA $ 4,595,300
ARIZONA-- 2.8% 3,000,000 Phoenix Civic Improvement Corporation (New City Hall Project),
5.10% due 7/1/2028 .......................................... Aa/AA+ 2,674,650
CALIFORNIA -- 2.7% 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 2,600,425
FLORIDA-- 4.8% 2,750,000 Jacksonville Electric Authority (Electric System Rev.),
5 1/4% due 10/1/2028 ........................................ Aa1/AA 2,477,502
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 ..................... Aa2/AA 2,219,175
ILLINOIS-- 9.9% 1,000,000 Illinois Health Facilities Authority Rev. (Northwestern
Memorial Hospital), 6.10% due 8/15/2014 .................... Aa2/AA 1,019,200
1,250,000 Illinois Health Facilities Authority Rev. (Edward Hospital
Project), 6% due 2/15/2019 .................................. A2/A 1,215,800
2,500,000 Illinois Health Facilities Authority Rev. (Northwestern
Memorial Hospital), 6% due 8/15/2024 ........................ Aa2/AA 2,505,125
5,000,000 Regional Transportation Authority GOs (Cook, DuPage, Kane,
Lake, McHenry, and Will Counties), 5.85% due 6/1/2023 ....... Aaa/AAA 4,881,800
KENTUCKY -- 2.1% 1,880,000 Trimble County Pollution Control Rev. (Louisville
Gas & Electric Co. Project), 7 5/8% due 11/1/2020* ........... Aa2/AA 2,051,682
MASSA- 2,000,000 Massachusetts Health & Education Facilities Authority Rev.
CHUSETTS-- 2.2% (Amherst College), 6.80% due 11/1/2021....................... Aa1/AA+ 2,141,880
MICHIGAN-- 2.4% 2,250,000 Michigan State Strategic Fund Pollution Control Rev.
(General Motors Corp.), 6.20% due 9/1/2020 .................. A3/A- 2,275,133
MISSOURI-- 5.1% 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- 4,961,550
NEW YORK-- 7.0% 3,410,000 New York City GOs, 7 1/4% due 8/15/2024......................... Baa1/BBB+ 3,637,447
90,000 New York City GOs, 7 1/4% due 8/15/2024 Aaa/BBB+ 99,006
3,000,000 United Nations Development Corp. Rev., 6 1/4% due 7/1/2026...... A/NR 3,030,420
SOUTH 2,000,000 Oconee County Pollution Control Rev. (Duke Power Company
CAROLINA-- 2.2% Project), 7 1/2% due 2/1/2017................................. Aa2/AA- 2,146,300
SOUTH 6,000,000 South Dakota Housing Development Authority Rev.
DAKOTA-- 6.1% (Homeownership Mortgage), 6.15% due 5/1/2026*................ Aa1/AAA 5,911,740
TEXAS-- 19.9% 3,700,000 Harris County Health Facilities Development Corp. Hospital Rev.
(St. Luke's Episcopal Hospital Project), 6 3/4% due 2/15/2021 Aa3/AA 3,928,327
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........................................... Aa3/AA 2,209,560
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
5
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PORTFOLIOS OF INVESTMENTS (continued)
____________________________________________________________________________________________________________________________________
NATIONAL SERIES (continued)
<S> <C> <C> <C> <C> <C>
FACE RATINGS MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- ----------- --------------------- ----------------- -------------
TEXAS (continued) $2,000,000 Harris County Health Facilities Development Corp. SCH Health
Care System Rev. (Sisters of Charity of the Incarnate Word),
5 3/4% due 7/1/2027 .......................................... Aa3/AA $ 1,916,960
5,000,000 Potter County Industrial Development Corp. Pollution
Control Rev. (Southwestern Public Service Company Project),
5 3/4% due 9/1/2016 .......................................... Aaa/AAA 4,947,850
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 2,179,420
2,605,000 Texas Veterans' Housing Assistance GOs, 6.80% due 12/1/2023*.... Aa/AA 2,697,685
1,340,000 Travis County Housing Finance Corporation (Single Family
Mortgage Rev.), 6.95% due 10/1/2027 .......................... NR/AAA 1,369,909
VIRGINIA-- 5.1% 5,000,000 Fairfax County Industrial Development Authority Health Care
Rev. (Inova Health System Project), 6% due 8/15/2026.......... Aa2/AA 4,972,250
WASH- 4,325,000 King County GOs, 6 1/8% due 1/1/2033........................... Aaa/AAA 4,353,329
INGTON-- 9.9% 5,520,000 Seattle Water System Rev., 5 5/8% due 8/1/2026................. Aaa/AAA 5,286,725
WISCONSIN -- 6.1% 6,000,000 LaCrosse Resource Recovery Rev. (Northern States Power
Company Project), 6% due 11/1/2021* .......................... A2/AA- 5,951,640
WYOMING-- 4.1% 4,000,000 Sweetwater County Pollution Control Rev. (Idaho Power
Company Project), 6.05% due 7/15/2026 ........................ A3/A 3,956,240
-----------
Total Municipal Bonds (Cost $93,554,991)-- 97.1%................................................ 94,214,030
-----------
VARIABLE RATE DEMAND NOTES
--------------------------
NEW YORK-- 3.5% 200,000 New York City GOs due 8/15/2021............................... VMIG-1/A-1+ 200,000
2,000,000 New York State Energy Research & Development
Authority Pollution Control Rev. due 12/1/2023 ................ NR/A-1+ 2,000,000
1,200,000 New York State Energy Research & Development
Authority Pollution Contro Rev. due 7/1/2027 ................ NR/A-1+ 1,200,000
NORTH 4,600,000 Person County Industrial Facilities & Pollution
CAROLINA-- 4.8% Control Financing Authority Rev. due 11/1/2016................ P-1/NR 4,600,000
-----------
Total Variable Rate Demand Notes (Cost $8,000,000)-- 8.3% ..................................... 8,000,000
-----------
Other Assets Less Liabilities-- (5.4)%......................................................... (5,231,187)
-----------
NET ASSETS-- 100.0%............................................................................ $96,982,843
===========
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
6
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March 31, 1997
____________________________________________________________________________________________________________________________________
COLORADO SERIES
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$3,000,000 Adams County, CO Pollution Control Rev. (Public Service Co. of Colorado Project),
5 7/8% due 4/1/2014................................................................ Aaa/AAA $ 3,041,190
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 1,619,295
2,000,000 Colorado Health Facilities Authority Rev.(Sisters of Charity Health Care Systems,
Inc.), 6% due 5/15/2013........................................................... Aaa/AAA 2,028,200
3,000,000 Colorado Health Facilities Authority Rev. (North Colorado Medical Center),
6% due 5/15/2020.................................................................. Aaa/AAA 2,992,320
2,085,000 Colorado Housing Finance Authority (Single Family Housing Rev.), 5.85% due
11/1/2015......................................................................... Aa1/AA+ 2,086,501
220,000 Colorado Housing Finance Authority (Single Family Residential Housing Rev.),
8% due 3/1/2017................................................................... Aa/NR 224,722
3,500,000 Colorado Springs, CO Utilities Rev., 6 1/8% due 11/15/2020........................... Aa/AA 3,536,925
895,000 Colorado Water Resources & Power Development Authority (Clean Water Bonds),
6 7/8% due 9/1/2011................................................................ Aa2/AA+ 976,078
105,000 Colorado Water Resources & Power Development Authority (Clean Water Bonds),
6 7/8% due 9/1/2011................................................................ Aa2/AA+ 113,989
2,000,000 Colorado Water Resources & Power Development Authority (Clean Water Bonds),
6% due 9/1/2014................................................................... Aa2/AA 2,046,680
1,000,000 Colorado Water Resources & Power Development Authority (Clean Water Rev.),
6.30% due 9/1/2014................................................................ Aa2/AA 1,051,230
2,000,000 Denver, CO City & County (St. Anthony Hospital Systems Rev.), 7 3/4% due 5/1/2014 Aaa/AAA 2,150,560
2,500,000 Denver, CO City & County (Sisters of Charity of Leavenworth Health Services
Corporation), 5% due 12/1/2023.................................................... Aa3/AA 2,184,225
2,250,000 Denver, CO City & County Excise Tax Rev., 6 1/2% due 9/1/2014........................ Aaa/AAA 2,337,750
1,985,000 Fort Collins, CO GOs Water Bonds, 6 3/8% due 12/1/2012........................... Aa/AA 2,110,869
2,500,000 Fort Collins Pollution Control Rev. (Anheuser-Busch Project), 6% due 9/1/2031 A1/AA- 2,530,750
3,000,000 Fountain Valley Authority, CO Water Treatment Rev., 6.80% due 12/1/2019............. Aa/AA 3,226,230
2,000,000 Northgate Public Building Authority, CO (Landowner Assessment Lien),
8 1/4% due 12/1/2001**............................................................. NR/NR 500,000
1,895,000 Northglenn, CO Joint Water & Wastewater Utility, 6.80% due 12/1/2008................ Aaa/NR 2,054,502
2,500,000 Platte River Power Authority, CO Power Rev., 6 1/8% due 6/1/2014..................... Aa3/A+ 2,571,925
2,000,000 Pueblo County, CO Single Family Mortgage Rev., 7.05% due 11/1/2027................... NR/AAA 2,091,900
2,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036...... Baa1/A 1,863,680
3,000,000 University of Colorado Hospital Authority Hospital Rev., 6.40% due 11/15/2022........ Aaa/AAA 3,107,520
2,000,000 Westminster, CO (Adams & Jefferson Counties) Sales & Use Tax Rev.,
7% due 12/1/2008.................................................................. Aaa/AAA 2,155,260
-----------
Total Municipal Bonds (Cost $48,153,957)-- 98.3%.................................................. 48,602,301
Other Assets Less Liabilities-- 1.7%.............................................................. 826,687
-----------
NET ASSETS-- 100.0%............................................................................... $49,428,988
===========
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
7
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PORTFOLIOS OF INVESTMENTS (continued)
____________________________________________________________________________________________________________________________________
GEORGIA SERIES
<S> <C> <C> <C>
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 $ 1,191,612
1,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 7.40% due 11/1/2010*........................................... A1/AA- 1,165,390
2,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 6 3/4% due 2/1/2012*............................................ A1/AA- 2,139,800
3,000,000 Chatham County, GA School District GOs, 5 1/2% due 8/1/2020......................... Aaa/AAA 2,826,990
750,000 Chatham County Hospital Authority, GA Rev. (Memorial Medical Center, Inc.),
7% due 1/1/2021.................................................................. Aaa/AAA 820,935
2,000,000 Columbia County, GA School District GOs, 6 1/4% due 4/1/2013........................ Aaa/AAA 2,095,240
1,000,000 Columbia County, GA Water & Sewerage Rev., 6 1/4% due 6/1/2012...................... Aaa/AAA 1,035,510
1,000,000 DeKalb County, GA GOs, 5 1/4% due 1/1/2020.......................................... Aa1/AA+ 921,430
1,000,000 DeKalb County, GA Water & Sewerage Rev., 7% due 10/1/2014............................ Aaa/AA 1,094,170
2,000,000 DeKalb County, GA Water & Sewerage Rev., 5 1/4% due 10/1/2023....................... Aa/AA 1,814,460
700,000 DeKalb Private Hospital Authority, GA Rev. (Emory University Project),
6 3/4% due 4/1/2017............................................................... Aa1/AA 749,350
300,000 DeKalb Private Hospital Authority, GA Rev. (Emory University Project),
7% due 4/1/2021.................................................................. Aa1/AA 322,698
1,000,000 Fayette County, GA School District GOs, 6 1/8% due 3/1/2015......................... Aa/A+ 1,030,740
3,000,000 Fulton County, GA School District GOs, 55/8% due 1/1/2021.......................... Aa/AA 2,909,910
2,975,000 Georgia Housing & Finance Authority Rev. (Single Family Mortgage),
5 1/4% due 12/1/2020.............................................................. Aa/AA+ 2,722,690
2,500,000 Georgia Municipal Gas Authority Rev. (Southern Storage Gas Project),
6.40% due 7/1/2014............................................................... NR/A- 2,587,850
400,000 Georgia Residential Finance Authority Homeownership Mortgage Rev.,
7.20% due 12/1/2011*............................................................. Aa/AA+ 417,136
1,000,000 Georgia State GOs, 5 3/4% due 2/1/2011....................................... Aaa/AA+ 1,029,250
1,750,000 Glynn-Brunswick Memorial Hospital Authority Rev. (Southeast Georgia Health
Systems Project), 6% due 8/1/2016................................................ Aaa/AAA 1,759,835
1,500,000 Gwinnett County, GA Hospital Authority Rev. Anticipation Certificates
(Gwinnett Hospital System, Inc. Project), 5% due 9/1/2019........................ Aaa/AAA 1,331,550
1,000,000 Gwinnett County, GA School District GOs, 6.40% due 2/1/2012........................ Aa1/AA 1,094,630
735,000 Gwinnett County, GA Water & Sewerage Authority Rev., 6 1/2% due 8/1/2006............ Aa1/AA+ 736,558
1,500,000 Henry County School District, GA GOs, 6.45% due 8/1/2011........................... A1/A+ 1,650,885
1,000,000 Metropolitan Atlanta Rapid Transit Authority, GA Sales Tax Rev., 7 1/4% due 7/1/2010 A1/AA- 1,055,280
500,000 Metropolitan Atlanta Rapid Transit Authority, GA Sales Tax Rev., 6 1/4% due 7/1/2018 A1/AA- 529,755
2,000,000 Monroe County, GA Development Authority Pollution Control Rev. (Georgia Power
Company Plant-- Scherer Project), 6% due 7/1/2025................................ Aaa/AAA 2,011,380
2,500,000 Private Colleges & Universities Authority, GA (Spelman College Project),
6.20% due 6/1/2014............................................................... Aaa/AAA 2,588,050
1,500,000 Private Colleges & Universities Authority, GA (Mercer University Project),
6 1/2% due 11/1/2015.............................................................. Aaa/AAA 1,649,100
3,000,000 Private Colleges & Universities Authority, GA (Agnes Scott College Project),
5 5/8% due 6/1/2023............................................................... Aa/AA- 2,909,880
500,000 Private Colleges & Universities Authority, GA (Emory University Project),
6.40% due 10/1/2023.............................................................. Aa1/AA 524,535
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
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March 31, 1997
____________________________________________________________________________________________________________________________________
GEORGIA SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$2,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2026.... Baa1/A $ 1,862,700
1,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2036.... Baa1/A 931,840
2,000,000 Savannah, GA Airport Rev., 6 1/4% due 1/1/2015*..................................... Aaa/AAA 2,038,280
-----------
Total Municipal Bonds (Cost $48,513,204)-- 97.7%................................................ 49,549,419
Variable Rate Demand Notes (Cost $400,000)-- 0.8%............................................... 400,000
Other Assets Less Liabilities-- 1.5%............................................................ 765,526
-----------
NET ASSETS-- 100.0%............................................................................. $50,714,945
===========
LOUISIANA SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$1,055,000 Alexandria, LA Utilities Rev., 5.30% due 5/1/2013.................................. Aaa/AAA $ 1,011,966
3,000,000 Bastrop, LA Industrial Development Board Pollution Control Rev.
(International Paper Company Project), 6.90% due 3/1/2007........................ A3/A- 3,245,070
2,500,000 Calcasieu Parish, LA Industrial Development Board (Conoco Inc. Project),
5 3/4% due 12/1/2026*............................................................. Aa3/AA- 2,373,900
2,420,000 East Baton Rouge Parish, LA Mortgage Finance Authority (Single Family Mortgage
Rev.), 5.40% due 10/1/2025....................................................... Aaa/NR 2,232,160
1,000,000 East Baton Rouge Parish, LA Public Improvement Sales & Use Tax Rev.,
7 1/4% due 2/1/2009............................................................... Aaa/AAA 1,064,940
3,000,000 East Baton Rouge Parish, LA Public Improvement Sales & Use Tax Rev.,
5.90% due 2/1/2018............................................................... Aaa/AAA 3,019,470
2,000,000 Houma, LA Utilities Rev., 6 1/4% due 1/1/2012....................................... Aaa/AAA 2,099,520
2,000,000 Jefferson Parish, LA Home Mortgage Authority (Single Family Mortgage Rev.),
6% due 12/1/2024*................................................................ Aa/NR 1,926,740
2,500,000 Louisiana Housing Finance Agency Mortgage Rev. (Single Family), 6.45% due 6/1/2027* Aaa/AAA 2,548,625
2,500,000 Louisiana Public Facilities Authority Hospital Rev. (Our Lady of Lourdes Regional
Medical Center Project), 6.45% due 2/1/2022...................................... Aaa/AAA 2,613,675
2,500,000 Louisiana Public Facilities Authority Rev. (Loyola University Project),
5 5/8% due 10/1/2016............................................................. Aaa/AAA 2,423,775
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 2,697,925
3,000,000 Louisiana Public Facilities Authority Rev. (Tulane University), 5 3/4% due 2/15/2021 Aaa/AAA 2,969,040
3,000,000 Louisiana State GOs, 6 1/2% due 5/1/2011............................................ Aaa/AAA 3,201,630
2,000,000 Louisiana State University & Agricultural & Mechanical College Auxiliary Rev.,
5 3/4% due 7/1/2014............................................................... Aaa/AAA 1,986,840
2,500,000 Ouachita Parish, LAHospital Service District Rev. (Glenwood Regional Medical
Center), 5 3/4% due 5/15/2021..................................................... Aaa/AAA 2,451,875
190,000 Ouachita Parish, LA Industrial Development Rev. (International Paper Company),
6 1/2% due 4/1/2006............................................................... NR/NR 190,059
2,500,000 Saint Bernard Parish, LA Exempt Facility Rev. (Mobil OilCorporation Project),
5.90% due 11/1/2026*............................................................. Aa2/AA 2,448,500
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
____________________________________________________________________________________________________________________________________
LOUISIANA SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$1,250,000 Saint Charles Parish, LA Environmental Improvement Rev. (Louisiana
Power and Light Company Project), 6.20% due 5/1/2023*............................ Baa2/BBB $ 1,235,425
2,960,000 Saint Charles Parish, LA Waterworks & Wastewater District Utility Rev.,
7.15% due 7/1/2016............................................................... Aaa/AAA 3,236,701
1,555,000 Shreveport, LA GOs, 7 1/2% due 4/1/2006............................................ Aaa/AAA 1,690,269
2,000,000 Shreveport, LA Water & Sewer Rev., 7 1/8% due 12/1/2014............................ Aaa/AAA 2,064,780
2,050,000 Sulphur, LA Housing & Mortgage Finance Trust (Residential Mortgage Rev.),
7 1/4% due 12/1/2010............................................................. Aaa/AAA 2,304,262
3,000,000 Tangipahoa Parish, LA Hospital Service District No. 1 Rev. (Northoaks
Medical Center), 6 1/4% due 2/1/2024............................................. Aaa/AAA 3,071,190
-----------
Total Municipal Bonds (Cost $52,449,526)-- 97.2%................................................ 54,108,337
Variable Rate Demand Notes (Cost $600,000)-- 1.1%............................................... 600,000
Other Assets Less Liabilities-- 1.7%............................................................ 936,460
-----------
NET ASSETS-- 100.0%............................................................................. $55,644,797
===========
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 $ 3,010,350
2,000,000 Baltimore, MD Consolidated Public Improvement GOs, 6 3/8% due 10/15/2006........... Aaa/AAA 2,178,840
2,500,000 Baltimore, MD Port Facilities Rev. (Consolidated Coal Sales Co. Project),
6 1/2% due 10/1/2011............................................................. Aa3/AA- 2,713,625
2,000,000 Baltimore, MD Project and Refunding Rev. (Water Projects), 5 1/2% due 7/1/2026..... Aaa/AAA 1,902,300
2,000,000 Howard County, MD Metropolitan District Project GOs, 5 1/2% due 8/15/2022.......... Aaa/AA+ 1,902,840
2,000,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Multi-Family Housing), 7.70% due 5/15/2020*......................... Aa/NR 2,116,820
2,465,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Single Family Program), 6.80% due 4/1/2024*......................... Aa/NR 2,538,408
2,500,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Multi-Family Housing), 6.70% due 5/15/2027.......................... Aa/NR 2,583,925
2,710,000 Maryland Health & Higher Educational Facilities Authority Rev. (Good Samaritan
Hospital), 5 3/4% due 7/1/2019................................................... A1/A 2,653,144
3,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins
University), 7 1/2% due 7/1/2020................................................. Aa2/AA- 3,166,920
2,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Suburban Hospital),
5 1/8% due 7/1/2021.............................................................. A1/A+ 1,789,400
2,750,000 Maryland Health & Higher Educational Facilities Authority Rev. (Ann Arundel Medical
Center), 5% due 7/1/2023......................................................... Aaa/AAA 2,424,757
3,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Francis Scott Key
Medical Center), 5% due 7/1/2023................................................. Aaa/AAA 2,645,190
2,000,000 Maryland Health &Higher Educational Facilities Authority Rev. (Mercy Medical
Center), 5 3/4% due 7/1/2026..................................................... Aaa/AAA 1,944,660
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
March 31, 1997
____________________________________________________________________________________________________________________________________
MARYLAND SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$1,000,000 Maryland National Capital Park & Planning Commission GOs (Prince George's
County), 6.90% due 7/1/2010...................................................... Aa2/AA $ 1,085,220
2,000,000 Maryland Transportation Authority Rev. (Baltimore/Washington International
Airport Project), 6 1/4% due 7/1/2014*........................................... Aaa/AAA 2,060,620
3,000,000 Maryland Transportation Authority Rev. Transportation Facilities Projects,
5 3/4% due 7/1/2015.............................................................. A1/A+ 2,966,310
1,000,000 Maryland Water Quality Financing Administration Revolving Loan Fund Rev.,
6.70% due 9/1/2013............................................................... Aaa/AAA 1,094,840
1,000,000 Maryland Water Quality Financing Administration Revolving Loan Fund Rev.,
7.10% due 9/1/2013............................................................... Aaa/AAA 1,110,360
2,500,000 Montgomery County, MD Consolidated Public Improvement GOs,
4.90% due 10/1/2013.............................................................. Aaa/AAA 2,312,100
455,000 Montgomery County, MD Housing Opportunities Commission (Single Family
Mortgage Rev.), 7 3/8% due 7/1/2017.............................................. Aa2/NR 476,972
1,500,000 Montgomery County, MD Housing Opportunities Commission Rev., 6.20% due 7/1/2026*... Aa2/NR 1,477,920
2,000,000 Northeast Maryland Waste Disposal Authority Solid Waste Rev. (Montgomery County
Resource Recovery Project), 6.30% due 7/1/2016*.................................. A/NR 2,029,280
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036.... Baa1/A 931,840
40,000 Puerto Rico Housing Finance Corporation (Single Family Mortgage Rev. Portfolio 1),
7.80% due 10/15/2021............................................................. Aaa/AAA 40,940
630,000 Puerto RicoHousing Finance Corporation (Single Family Mortgage Rev. Portfolio 1-C),
6.85% due 10/15/2023............................................................. Aaa/AAA 657,172
2,500,000 Washington Suburban Sanitary District, MD, 6 1/2% due 1/1/2016..................... Aa1/AA 2,680,725
------------
Total Municipal Bonds (Cost $51,274,795)-- 96.6%................................................ 52,495,478
Variable Rate Demand Notes (Cost $900,000)-- 1.7%............................................... 900,000
Other Assets Less Liabilities-- 1.7%............................................................ 954,754
------------
NET ASSETS-- 100.0%............................................................................. $54,350,232
============
MASSACHUSETTS SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$5,000,000 Boston, MA Water & Sewer Commission General Rev., 5 1/4% due 11/1/2019............. A/A $ 4,764,700
3,000,000 Boston, MA Water & Sewer Commission General Rev., 7.10% due 11/1/2019.............. Aaa/AAA 3,249,990
5,000,000 Massachusetts Bay Transportation Authority General Transportation System,
5 5/8% due 3/1/2026.............................................................. A1/A+ 4,763,500
1,520,000 Massachusetts Education Loan Authority Education Loan Rev., 8% due 6/1/2002........ NR/AAA 1,549,883
3,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Daughters of Charity
National Health Systems-- Carney Hospital), 6% due 7/1/2009...................... Aa2/AA 3,050,760
2,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Daughters of Charity
National Health Systems-- Carney Hospital), 6.10% due 7/1/2014................... Aa2/AA 2,549,250
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Newton-Wellesley
Hospital), 6% due 7/1/2018....................................................... Aaa/AAA 4,999,450
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
____________________________________________________________________________________________________________________________________
MASSACHUSETTS SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$3,295,000 Massachusetts Health & Educational Facilities Authority Rev. (Tufts University),
7.40% due 8/1/2018............................................................... Aaa/A+ $ 3,502,190
705,000 Massachusetts Health & Educational Facilities Authority Rev. (Tufts University),
7.40% due 8/1/2018............................................................... A1/A+ 744,868
3,500,000 Massachusetts Health &Educational Facilities Authority Rev. (Williams College),
5 3/4% due 7/1/2019............................................................... Aa1/AA 3,418,100
2,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University),
8 1/8% due 7/1/2020............................................................... NR/NR 2,783,075
2,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Boston College),
6 5/8% due 7/1/2021............................................................... Aaa/AAA 2,135,420
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Brigham & Women's
Hospital), 6 3/4% due 7/1/2024.................................................... A1/A+ 5,330,500
5,100,000 Massachusetts Health & Educational Facilities Authority Rev. (SmithCollege),
5 3/4% due 7/1/2024............................................................... Aa2/AA- 4,942,665
7,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Harvard University),
5 5/8% due 11/1/2028.............................................................. Aaa/AAA 7,257,825
1,600,000 Massachusetts Housing Finance Agency Rev. (Residential Development),
6 1/4% due 11/15/2012............................................................. Aaa/AAA 1,648,688
4,705,000 Massachusetts Housing Finance Agency Rev. (Single Family Housing),
7.30% due 6/1/2014............................................................... Aa/A+ 4,805,075
3,195,000 Massachusetts Industrial Finance Agency Rev. (Phillips Academy), 5 3/8%
due 9/1/2023..................................................................... Aa1/AA 3,016,527
3,000,000 Massachusetts Industrial Finance Agency Rev. (College of the Holy Cross),
5 5/8% due 3/1/2026............................................................... Aaa/AAA 2,877,990
2,000,000 Massachusetts Industrial Finance Agency Electric Utility Rev. (Nantucket Electric
Company Project), 5 7/8% due 7/1/2017*........................................... Aaa/AAA 1,975,320
2,450,000 Massachusetts Special Obligation Rev. (Highway Improvement Loan), 6% due 6/1/2013.. A1/AA 2,493,218
2,500,000 Massachusetts Special Obligation Rev. (Highway Improvement Loan),
5.80% due 6/1/2014............................................................... A1/AA- 2,506,825
8,000,000 Massachusetts State Consolidated Loan GOs, 5 1/8% due 11/1/2013..................... Aaa/AAA 7,520,160
8,475,000 Massachusetts State Port Authority Rev., 7 1/8% due 7/1/2012........................ Aa/AA 8,541,444
5,500,000 Massachusetts Water Resources Authority General Rev., 5.60% due 11/1/2026.......... Aaa/AAA 5,255,305
730,000 Puerto Rico Electric Power Authority Power Rev., 7 1/8% due 7/1/2014................ Baa1/BBB+ 778,625
4,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2036.... Baa1/A 3,727,360
2,750,000 Puerto Rico Port Authority Rev., 6% due 7/1/2021*.................................. Aaa/AAA 2,735,783
------------
Total Municipal Bonds (Cost $101,487,168)-- 98.1%............................................... 102,924,496
Variable Rate Demand Notes (Cost $400,000)-- 0.4%............................................... 400,000
Other Assets Less Liabilities-- 1.5%............................................................ 1,589,059
------------
NET ASSETS-- 100.0%............................................................................. $104,913,555
============
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
March 31, 1997
____________________________________________________________________________________________________________________________________
MICHIGAN SERIES
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$5,000,000 Capital Region Airport Authority, MI Airport Rev., 6.70% due 7/1/2021*............. Aaa/AAA $ 5,330,900
5,000,000 Detroit, MI GOs, 5 1/2% due 4/1/2016............................................... Aaa/AAA 4,778,800
6,000,000 Detroit, MI Water Supply System Rev., 6 1/4% due 7/1/2012.......................... Aaa/AAA 6,254,520
3,000,000 Grand Haven, MI Electric System Rev., 5 1/4% due 7/1/2013.......................... Aaa/AAA 2,860,950
5,000,000 Grand Rapids, MI Water Supply System Rev., 5 3/4% due 1/1/2018..................... Aaa/AAA 4,933,950
1,000,000 Grand Traverse County, MI Hospital Finance Authority (Munson Healthcare
Obligated Group), 6 1/4% due 7/1/2012............................................ Aaa/AAA 1,032,780
1,500,000 Grand Traverse County, MI Hospital Finance Authority (Munson Healthcare
Obligated Group), 6 1/4% due 7/1/2022............................................ Aaa/AAA 1,540,215
3,000,000 Holland School District, MI GOs (School Building and Site Bonds), 7 3/8%
due 5/1/2019.................................................................... NR/NR 3,134,730
3,000,000 Jackson County, MI Hospital Finance Authority Rev. (W.A. Foote Memorial Hospital),
7 1/4% due 6/1/2012.............................................................. NR/NR 3,076,320
5,000,000 Kent County, MI Airport Rev., 6.10% due 1/1/2025*.................................. Aa/AAA 5,095,050
5,000,000 Kent County, MI Refuse Disposal System GOs, 8.40% due 11/1/2010.................... Aa/AAA 5,228,950
2,775,000 Kentwood, MI Public Schools Building & Site GOs, 6.40% due 5/1/2015................ Aa/A+ 2,896,601
3,000,000 Lansing, MIBuilding Authority Rev., 5.60% due 6/1/2019............................. A1/AA+ 2,903,610
3,250,000 Marquette, MIHospital Finance Authority Hospital Rev. (Marquette General Hospital),
6.10% due 4/1/2019............................................................... Aaa/AAA 3,260,335
3,000,000 Michigan Public Power Agency Rev. (Belle River Project), 5 1/4% due 1/1/2018....... A1/AA- 2,734,680
3,000,000 Michigan State Building Authority Rev., 6 1/4% due 10/1/2020....................... A1/AA- 3,072,240
6,000,000 Michigan State GOs (Environmental Protection Program), 5.40% due 11/1/2019......... Aa2/AA 5,613,780
4,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Crittenton Hospital),
5 1/4% due 3/1/2014.............................................................. A1/A+ 3,736,080
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (St. John Hospital),
5 3/4% due 5/15/2016............................................................. Aaa/AAA 4,886,300
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Henry Ford Health System),
5 3/4% due 9/1/2017.............................................................. Aaa/AAA 4,882,400
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Detroit Medical Center),
6 1/2% due 8/15/2018............................................................. A2/A 5,196,200
1,250,000 Michigan State Hospital Finance Authority Hospital Rev. (Crittenton Hospital),
6 3/4% due 3/1/2020.............................................................. Aaa/AAA 1,333,075
2,000,000 Michigan State Hospital Finance Authority Hospital Rev. (St. John Hospital),
5 1/4% due 5/15/2026............................................................. Aaa/AAA 1,804,680
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Sparrow Obligated Group),
6% due 11/15/2036................................................................ Aaa/AAA 4,939,950
2,500,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.80% due 12/1/2016.............................................................. NR/AA+ 2,598,225
5,000,000 Michigan State Housing Development Authority Rev. (Rental Housing),
6.65% due 4/1/2023............................................................... NR/A+ 5,142,400
4,000,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.05% due 12/1/2027.............................................................. NR/AA+ 4,009,240
3,000,000 Michigan State Strategic Fund Pollution Control Rev. (Detroit Edison Company),
6 1/2% due 2/15/2016............................................................. Aaa/AAA 3,189,750
6,000,000 Michigan State Strategic Fund Pollution Control Rev. (General Motors Corp.),
6.20% due 9/1/2020............................................................... A3/A- 6,067,020
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
____________________________________________________________________________________________________________________________________
MICHIGAN SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$7,500,000 Michigan State Trunk Line Rev., 5.80% due 11/15/2024............................... Aaa/AAA $ 7,367,700
2,000,000 Midland, MI Water Supply System Rev., 7.20% due 4/1/2010........................... A/A 2,153,920
6,300,000 Oxford, MI Area Community Schools GOs, 5 1/2% due 5/1/2021.......................... Aaa/AAA 5,977,818
5,000,000 University of Michigan Hospital Rev., 6 3/8% due 12/1/2024.......................... Aa2/AA 5,108,100
5,000,000 Wayne, MI State University Rev., 5.65% due 11/15/2015.............................. Aaa/AAA 4,908,200
3,000,000 Wyandotte, MI Electric Rev., 6 1/4% due 10/1/2017................................... Aaa/AAA 3,088,500
------------
Total Municipal Bonds (Cost $136,782,134)-- 98.1%............................................... 140,137,969
Variable Rate Demand Notes (Cost $200,000)-- 0.1%............................................... 200,000
Other Assets Less Liabilities-- 1.8%............................................................ 2,539,714
------------
NET ASSETS-- 100.0%............................................................................. $142,877,683
============
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+ $ 6,584,625
2,000,000 Breckenridge, MN Hospital Facility Rev. (Franciscan Sisters Health Care, Inc.),
9 3/8% due 9/1/2017.............................................................. NR/NR 2,084,280
1,500,000 Buffalo, MN Independent School District GOs, 6.15% due 2/1/2022.................... Aaa/AAA 1,525,530
1,500,000 Cloquet, MN Pollution Control Rev. (Potlatch Corporation Projects), 5.90% due
10/1/2026........................................................................ NR/A- 1,495,005
3,000,000 Dakota County, MN GOs Capital Improvement, 7.30% due 2/1/2008...................... Aa3/NR 3,073,650
5,000,000 Edina, MN Housing Development Rev. (Edina Park Plaza Project), 7.70% due 12/1/2028. Aa/NR 5,232,150
3,545,000 Fridley, MN Independent School District GOs, 5.35% due 2/1/2021.................... Aaa/AAA 3,305,464
2,000,000 Goodhue County, MN Hospital Facilities Rev. (St. John's Regional Health Center),
8 3/4% due 9/1/2016............................................................. NR/NR 2,079,360
1,200,000 Lakeville, MN Independent School District GOs, 6.70% due 2/1/2015.................. Aaa/AAA 1,244,796
7,500,000 Minneapolis, MN Community Development Agency Tax Increment Rev., Zero Coupon
Bond due 9/1/2003................................................................ Aaa/AAA 5,480,250
1,400,000 Minneapolis-St. Paul Metropolitan Area (Metropolitan Council of the Twin Cities),
MN, 5 1/2% due 12/1/2012......................................................... Aaa/AAA 1,391,166
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 4,680,150
1,500,000 Minneapolis, MNGOs, 6% due 3/1/2016................................................ Aaa/AAA 1,525,515
2,000,000 Minneapolis, MN Hospital Facilities Rev. (Lifespan, Inc.-- Abbott-Northwestern
Hospital, Inc.), 7 7/8% due 12/1/2014............................................ Aaa/AAA 2,092,140
1,500,000 Minneapolis, MN Tax Increment Rev., 7% due 3/1/2003................................ Aaa/AAA 1,532,550
910,000 Minnesota Housing Finance Agency (Housing Development), 6 1/4% due 2/1/2020........ Aa2/AA 919,692
5,000,000 Minnesota Housing Finance Agency (Single Family Mortgage), 6.85% due 1/1/2024*..... Aa2/AA+ 5,180,950
5,500,000 Minnesota Public Facilities Authority Water Pollution Control Rev., 7.10%
due 3/1/2012..................................................................... Aaa/AAA 5,977,730
5,000,000 Minnesota State GOs, 5.70% due 5/1/2016............................................ Aaa/AA+ 5,006,750
5,000,000 North Saint Paul/Maplewood, MNIndependent School District GOs, 5 1/8% due 2/1/2025. Aa1/AA 4,561,850
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
14
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<TABLE>
<CAPTION>
====================================================================================================================================
March 31, 1997
____________________________________________________________________________________________________________________________________
MINNESOTA SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$5,000,000 Northern Municipal Power Agency, MN Electric System Rev., 7 1/4% due 1/1/2016....... A2/A $ 5,285,250
2,500,000 Northern Municipal Power Agency, MN Electric System Rev., 7.40% due 1/1/2018....... Aaa/AAA 2,676,750
2,500,000 Northfield, MN Independent School District GOs, 5 1/4% due 2/1/2017................. Aa1/NR 2,355,850
4,000,000 Plymouth, MN Health Facilities Rev. (Westhealth Project), 6 1/8% due 6/1/2024....... Aaa/AAA 4,056,960
2,000,000 Ramsey & Washington Counties, MN Resource Recovery Rev. (Northern States Power
Company Project), 6 3/4% due 12/1/2006............................................ A1/AA- 2,078,920
4,000,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
7.45% due 11/15/2006............................................................. NR/AA+ 4,364,960
4,500,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
6 1/4% due 11/15/2014............................................................. NR/AA+ 4,701,780
1,000,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
6 1/4% due 11/15/2021............................................................. NR/AA+ 1,040,430
2,575,000 Rochester, MN Independent School District GOs, 5 5/8% due 2/1/2016.................. Aaa/AA 2,558,520
2,715,000 Rochester, MN Independent School District GOs, 5 5/8% due 2/1/2017.................. Aaa/AA 2,690,755
1,000,000 Saint Cloud, MN Hospital Facilities Rev. (Saint Cloud Hospital), 5% due 7/1/020..... Aaa/AAA 896,140
244,457 Saint Paul, MN Science Museum Facilities Rev. (Science Museum of Minnesota Project),
7 1/2% due 12/15/2001............................................................. NR/AAA 258,161
45,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9 1/8% due 10/1/2000.............................................................. NR/CCC 43,400
5,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9 1/8% due 12/1/2000.............................................................. NR/CCC 4,814
55,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9 1/8% due 12/1/2000.............................................................. NR/CCC 52,953
50,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9 1/8% due 10/1/2001.............................................................. NR/CCC 47,820
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9 1/8% due 12/1/2001.............................................................. NR/CCC 9,549
55,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9 1/8% due 12/1/2001.............................................................. NR/CCC 52,518
5,000 Saint Paul Port Authority, MN Industrial Development Rev. Series L,
9 3/4% due 12/1/2001.............................................................. NR/CCC 4,888
50,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9 1/8% due 10/1/2002.............................................................. NR/CCC 47,138
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9 1/8% due 12/1/2002.............................................................. NR/CCC 9,411
60,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9 1/8% due 12/1/2002.............................................................. NR/CCC 56,467
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series L,
9 3/4% due 12/1/2002.............................................................. NR/CCC 9,673
1,500,000 Southern Minnesota Municipal Power Agency-- Power Supply System Rev.,
5 3/4% due 1/1/2018............................................................... A/A+ 1,447,050
750,000 Southern Minnesota Municipal Power Agency-- Power Supply System Rev.,
5 3/4% due 1/1/2018............................................................... Aaa/AAA 751,732
1,500,000 Southern Minnesota Municipal Power Agency-- Power Supply System Rev.,
4 3/4% due 1/1/2016............................................................... A/A+ 1,292,025
3,500,000 Washington County, MN GOs, 5.90% due 2/1/2010...................................... Aa2/AA- 3,560,480
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
____________________________________________________________________________________________________________________________________
MINNESOTA SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$3,090,000 Western Minnesota Municipal Power Agency-- Power Supply Rev., 5 1/2% due 1/1/2015... A1/A $ 2,961,394
9,580,000 Western Minnesota Municipal Power Agency-- Power Supply Rev., 6 3/8% due 1/1/2016... Aaa/AAA 10,315,648
-------------
Total Municipal Bonds (Cost $114,205,808)-- 94.9%............................................... 118,605,039
Variable Rate Demand Notes (Cost $4,900,000)-- 3.9%............................................. 4,900,000
Other Assets Less Liabilities-- 1.2%............................................................ 1,456,095
-------------
NET ASSETS-- 100.0%............................................................................. $124,961,134
=============
MISSOURI SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$2,000,000 Columbia, MO Water and Electric System Improvement Rev., 6 1/8% due 10/1/2012....... A1/AA $ 2,020,920
2,500,000 Curators of the University of Missouri Health Facilities Rev.
(University of Missouri Health System), 5.60% due 11/1/2026...................... Aaa/AAA 2,409,025
1,500,000 Hannibal, MO Industrial Development Authority Health Facilities Rev.
(Hannibal Regional Hospital), 5 3/4% due 3/1/2022................................. Aaa/AAA 1,461,195
3,775,000 Kansas City, MO Water Rev., 6 1/4% due 12/1/2009.................................... Aa/NR 3,872,546
1,500,000 Kansas City School District Building Corporation, MO Leasehold Rev.,
7.90% due 2/1/2008............................................................... Aaa/AAA 1,578,885
1,000,000 Liberty, MO Waterworks Improvement Rev., 6.30% due 10/1/2012....................... Aaa/AAA 1,041,370
2,000,000 Little Blue Valley, MO Sewer District Rev., 7 1/4% due 10/1/2007.................... Aaa/AAA 2,077,440
1,000,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7 3/8% due 3/1/2006............................................................... Aaa/AAA 1,033,360
2,000,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7% due 3/1/2006.................................................................. Aaa/AAA 2,063,660
1,000,000 Missouri State Environmental Improvement & Energy Resources Authority Rev.
(State Revolving Fund Program), 6.55% due 7/1/2014............................... Aa2/NR 1,057,690
2,500,000 Missouri State Environmental Improvement & Energy Resources Authority Rev.
(Union Electric Company Project), 5.45% due 10/1/2028*........................... A1/AA- 2,348,325
2,500,000 Missouri State Environmental Improvement & Energy Resources Authority-- Water
Pollution Control Rev. (State Revolving Fund Program), 5.40% due 7/1/2015........ Aa2/NR 2,369,225
2,000,000 Missouri State GOs, 5 23,825
5/8% due 4/1/2017................................................................. Aaa/AAA 1,994,060
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 2,378,950
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.............................. Aa2/AA 1,542,510
3,500,000 Missouri State Health & Educational Facilities Authority Rev. (SSM Health Care),
6 1/4% due 6/1/2016............................................................... Aaa/AAA 3,592,995
1,000,000 Missouri State Health & Educational Facilities Authority Rev. (Sisters of Mercy
Health System, St. Louis, Inc.), 7 1/4% due 6/1/2019.............................. Aaa/AA 1,076,190
1,000,000 Missouri State Health & Educational Facilities Authority Rev. (Sisters of Mercy
Health System, St. Louis, Inc.), 5% due 6/1/2019................................. Aa2/AA 879,310
2,500,000 Missouri State Health Facilities Rev. (Barnes-Jewish, Inc./Christian Health
Services), 5 1/4% due 5/15/2021................................................... Aa2/AA 2,265,350
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
March 31, 1997
____________________________________________________________________________________________________________________________________
MISSOURI SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$ 860,000 Missouri State Housing Development Commission Housing Development Bonds
(Federally Insured Mortgage Loans), 6% due 10/15/2019............................ Aa2/AA+ $ 858,916
2,000,000 Missouri State Housing Development Commission Single Family Mortgage Rev.
(Homeownership Loan Program), 6 1/8% due 3/1/2028*................................ NR/AAA 1,984,780
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- 1,687,290
1,500,000 St. Louis, MO Municipal Finance Corporation City Justice Center Leasehold
Improvement Rev., 5.95% due 2/15/2016............................................ Aaa/AAA 1,521,465
2,400,000 Southeast Missouri Correctional Facility Lease Rev. (Missouri State Project),
5 3/4% due 10/15/2016............................................................. Aa/AA 2,328,744
2,500,000 Springfield, MO Waterworks Rev., 5.60% due 5/1/2023................................ Aa/A+ 2,372,000
2,750,000 University of Missouri Systems Facilities Rev., 5 1/2% due 11/1/2023................ Aa2/AA+ 2,582,140
-----------
Total Municipal Bonds (Cost $49,789,734)-- 95.8%................................................ 50,398,341
Variable Rate Demand Notes (Cost $1,400,000)-- 2.6%............................................. 1,400,000
Other Assets Less Liabilities-- 1.6%............................................................ 828,002
-----------
NET ASSETS-- 100.0%............................................................................. $52,626,343
===========
NEW YORK SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$5,000,000 Metropolitan Transportation Authority, NY (Commuter Facilities Rev.),
6 1/2% due 7/1/2024............................................................... Baa1/BBB+ $ 5,185,700
3,500,000 Metropolitan Transportation Authority, NY Dedicated Tax Fund Bonds,
5 1/4% due 4/1/2026............................................................... Aaa/AAA 3,208,450
2,900,000 Metropolitan Transportation Authority, NY (Transit Facilities Rev.),
6.10% due 7/1/2026............................................................... Aaa/AAA 2,949,271
2,500,000 Municipal Assistance Corporation for the City of New York, NY, 6.90% due 7/1/2007.. Aa2/AA 2,564,500
4,000,000 New York City Municipal Water Finance Authority, NY Water & Sewer System Rev.,
6 1/4% due 6/15/2020.............................................................. A2/A- 4,130,520
2,435,000 New York City, NY GOs, 7 1/4% due 8/15/2024......................................... Baa1/BBB+ 2,597,415
1,500,000 New York City, NY GOs, 6% due 8/1/2026............................................. Baa1/BBB+ 1,430,385
1,000,000 New York City, NY Trust for Cultural Resources Rev. (Museum of Modern Art),
5 1/2% due 1/1/2021............................................................... Aaa/AAA 946,700
3,500,000 New York State Dormitory Authority Rev. (Rockefeller University), 7 3/8% due
7/1/2014......................................................................... Aaa/AAA 3,694,775
5,000,000 New York State Dormitory Authority Rev. (Fordham University), 5 3/4% due 7/1/2015... Aaa/AAA 4,966,000
3,500,000 New York State Dormitory Authority Rev. (Mental Health Services Facilities
Improvement), 5 3/4% due 8/15/2022................................................ Baa1/BBB+ 3,303,895
5,000,000 New York State Dormitory Authority Rev. (Skidmore College), 5 3/8% due 7/1/2023..... Aaa/AAA 4,595,200
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 2,686,575
3,000,000 New York State Environmental Facilities Corporation Pollution Control Rev.
(State Water-- Revolving Fund), 6.90% due 11/15/2015............................. Aaa/AAA 3,371,070
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
____________________________________________________________________________________________________________________________________
NEW YORK SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$3,000,000 New York State Housing Finance Agency Rev. (Phillips Village Project),
7 3/4% due 8/15/2017*............................................................. A/NR $ 3,301,260
3,000,000 New York State Local Government Assistance Corp., 6% due 4/1/2024................... A3/A 2,992,050
2,000,000 New York State Medical Care Facilities Finance Agency Rev. (The Hospital for
Special Surgery), 6 3/8% due 8/15/2024............................................ Aa/AA 2,048,680
2,000,000 New York State Mortgage Agency (Homeownership Mortgage), 7 1/2% due 4/1/2016........ Aa/NR 2,103,400
3,000,000 New York State Power Authority General Purpose Rev., 6 1/2% due 1/1/2019............ Aaa/AAA 3,182,910
4,000,000 New York State Thruway Authority Service Contract Rev., 6 1/4% due 4/1/2014......... Baa1/BBB 4,056,360
4,000,000 New York State Thruway Authority General Rev., 6% due 1/1/2025..................... Aaa/AAA 4,014,200
4,000,000 Onondaga County, NY Industrial Development Agency Sewer Facilities Rev.
(Bristol Myers-Squibb Co. Project), 5 3/4% due 3/1/2024........................... Aaa/AAA 3,940,560
2,250,000 Port Authority of New York and New Jersey Consolidated Rev., 6 1/8% due 6/1/2094.... A1/AA- 2,311,717
1,000,000 Puerto Rico Highway & Transportation Authority Rev., 5 1/2% due 7/1/2026............ Baa1/A 931,350
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 4,891,600
-----------
Total Municipal Bonds (Cost $77,667,487)-- 98.3%................................................. 79,404,543
Other Assets Less Liabilities-- 1.7%............................................................. 1,382,315
-----------
NET ASSETS-- 100.0%.............................................................................. $80,786,858
===========
OHIO SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$2,000,000 Barberton, OH Sewer System Mortgage Rev., 6 5/8% due 12/1/2006..................... Aaa/AAA $ 2,071,800
2,250,000 Beavercreek Local School District, OH GOs (School Improvement Bonds),
5.70% due 12/1/2020.............................................................. Aaa/AAA 2,204,010
3,450,000 Big Walnut Local School District, OH School Building Construction & Improvement
GOs, 7.20% due 6/1/2007.......................................................... Aaa/AAA 3,825,601
3,000,000 Clermont County, OH Hospital Facilities Rev. (Mercy Health System), 5 7/8%
due 1/1/2015..................................................................... Aaa/AAA 3,014,490
1,000,000 Clermont County, OH Hospital Facilities Rev. (Mercy Health System), 5 5/8%
due 9/1/2021..................................................................... Aaa/AAA 960,860
5,000,000 Cleveland, OH Waterworks Improvement Rev., 5 3/4% due 1/1/2021..................... Aaa/AAA 4,935,750
5,000,000 Columbus, OH GOs, 6 1/2% due 1/1/2010.............................................. Aaa/AAA 5,456,650
4,500,000 Columbus, OH Municipal Airport Authority Rev. (Port Columbus International
Airport Project), 6% due 1/1/2020*............................................... Aaa/AAA 4,455,450
3,000,000 Dayton, OH Water System Mortgage Rev., 6 3/4% due 12/1/2010........................ Aaa/AAA 3,111,750
7,000,000 Erie County, OH Franciscan Services Corp. Rev. (Providence Hospital Inc.),
6% due 1/1/2013.................................................................. NR/A- 6,811,770
7,750,000 Franklin County, OH GOs, 5 3/8% due 12/1/2020...................................... Aaa/AAA 7,347,310
7,500,000 Franklin County, OH Hospital Rev. (Riverside United Methodist Hospital),
5 3/4% due 5/15/2020............................................................. Aa3/NR 7,185,300
5,000,000 Hamilton County, OH Health Care System Rev. (Sisters of Charity Health Care),
6 1/4% due 5/15/2014............................................................. Aaa/AAA 5,156,750
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
March 31, 1997
____________________________________________________________________________________________________________________________________
OHIO SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$2,500,000 Hamilton County, OH Sewer System Rev., 5 1/2% due 12/1/2017........................ Aaa/AAA $ 2,407,225
8,000,000 Hamilton, OH Electric System Mortgage Rev., 6% due 10/15/2023...................... Aaa/AAA 8,072,080
4,000,000 Hudson Local School District, OH GOs, 7.10% due 12/15/2013......................... A1/NR 4,399,440
1,095,000 Lake County, OH Hospital Improvement Rev. (Lake Hospital System Inc.),
8% due 1/1/2013.................................................................. Aaa/AAA 1,120,338
5,000,000 Mount Vernon, OH Hospital Rev. (Knox Community Hospital), 7 7/8% due 6/1/2012...... NR/NR 5,154,750
2,500,000 Northeast, OH Regional Sewer District Wastewater Rev., 5.60% due 11/15/2013........ Aaa/AAA 2,493,400
5,000,000 Ohio Air Quality Development Authority Pollution Control Rev. (Ohio Edison
Company Project), 7.45% due 3/1/2016............................................. Aaa/AAA 5,427,750
2,000,000 Ohio Air Quality Development Authority Rev. (Cincinnati Gas & Electric
Company Project), 5.45% due 1/1/2024............................................. Aaa/AAA 1,861,700
6,500,000 Ohio Air Quality Development Authority Rev. (JMG Project), 6 3/8% due 1/1/2029*.... Aaa/AAA 6,693,505
4,430,000 Ohio Housing Finance Agency Residential Mortgage Rev. (Mortgage-Backed
Securities Program), 6.10% due 9/1/2028*......................................... NR/AAA 4,386,896
3,000,000 Ohio State GOs Infrastructure Improvement, 6 1/2% due 8/1/2011..................... Aa1/AA+ 3,181,710
1,500,000 Ohio State Higher Educational Facilities Commission Mortgage Rev.
(University of Dayton Project), 7 1/4% due 12/1/2012............................. Aaa/AAA 1,641,450
3,000,000 Ohio State Higher Educational Facilities Commission Rev. (Oberlin College Project),
5 3/8% due 10/1/2015............................................................. NR/AA 2,843,490
2,000,000 Ohio State Liquor Profits Rev., 6.85% due 3/1/2000................................. Aaa/AAA 2,121,760
6,000,000 Ohio State Public Facilities Commission Rev. (Higher Education Capital Facilities),
6.30% due 5/1/2006............................................................... Aaa/AAA 6,343,380
2,455,000 Ohio State Water Development Authority Rev. (Safe Water), 9 3/8% due 12/1/2010..... Aaa/AAA 3,045,084
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- 2,599,525
8,000,000 Ohio State Water Development Authority Water Development Rev. (Dayton Power &
Light Co. Project), 6.40% due 8/15/2027.......................................... Aa3/AA- 8,372,720
6,000,000 Ohio Turnpike Commission, OH Turnpike Rev., 5.70% due 2/15/2017.................... Aaa/AAA 5,922,360
2,955,000 Pickerington Local School District, OH School Building Construction GOs,
8% due 12/1/2005................................................................. Aaa/AAA 3,378,954
4,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036.... Baa1/A 3,727,360
775,000 Toledo, OH Sewer System Rev., 7 3/4% due 11/15/2017................................ Aaa/AAA 827,708
560,000 Toledo, OH Waterworks Rev., 7 3/4% due 11/15/2017.................................. Aaa/AAA 598,086
2,500,000 Twinsburg City School District, OH School Improvement GOs, 5.90% due 12/1/2021..... Aaa/AAA 2,508,125
3,000,000 University of Toledo, OH General Receipts Bonds, 7.10% due 6/1/2010................ Aaa/AAA 3,270,930
2,000,000 Worthington City School District, OH School Building Construction & Improvement
GOs, 8 3/4% due 12/1/2002........................................................ Aaa/AAA 2,236,460
------------
Total Municipal Bonds (Cost $146,376,131)-- 97.9%............................................... 151,173,677
Variable Rate Demand Notes (Cost $900,000)-- 0.6%............................................... 900,000
Other Assets Less Liabilities-- 1.5%............................................................ 2,407,012
------------
NET ASSETS-- 100.0%............................................................................. $154,480,689
============
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
19
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
PORTFOLIOS OF INVESTMENTS (continued) March 31, 1997
____________________________________________________________________________________________________________________________________
OREGON SERIES
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$1,000,000 Albany, OR GOs Water Bonds, 6 5/8% due 11/1/2009................................... Aaa/AAA $ 1,002,010
2,000,000 Chemeketa, OR Community College District GOs, 5.95% due 6/1/2016................... Aaa/AAA 2,029,420
1,000,000 Clackamas County, OR Hospital Facility Authority Rev. (Kaiser Permanente),
6 1/4% due 4/1/2021............................................................... Aa3/AA 1,032,230
2,000,000 Eugene, OR Electric Utility Rev., 5.80% due 8/1/2022............................... Aaa/AAA 2,005,540
1,500,000 Eugene, OR Trojan Nuclear Project Rev., 5.90% due 9/1/2009......................... Aa1/AA- 1,507,125
730,000 Eugene, OR Water Utility System Rev., 6.55% due 8/1/2003........................... A1/AA- 746,257
2,500,000 Hillsboro, OR Hospital Facilities Authority Rev. (Tuality Healthcare),
5 3/4% due 10/1/2012.............................................................. NR/BBB+ 2,412,350
1,000,000 Metropolitan Service District, OR GOs (Oregon Convention Center),
6 1/4% due 1/1/2013............................................................... Aa/AA+ 1,041,040
1,250,000 Multnomah County School District, OR GOs, 6.80% due 12/15/2004..................... Aa/A+ 1,256,937
1,750,000 Multnomah County School District, OR GOs, 5 1/2% due 6/1/2015....................... A1/A+ 1,678,093
2,000,000 North Clackamas Parks & Recreation District-- Clackamas County, OR Rev.
(Recreational Facilities), 5.70% due 4/1/2013.................................... NR/A- 1,954,900
2,000,000 North Wasco County People's Utility District-- Wasco County, OR Rev.
(Bonneville Power Administration), 5.20% due 12/1/2024........................... Aa1/AA- 1,810,040
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- 752,198
1,000,000 Oregon Department of Transportation Regional Light Rail Extension Rev.,
6.20% due 6/1/2008............................................................... Aaa/AAA 1,070,590
2,850,000 Oregon Health, Housing, Educational & Cultural Facilities Authority Rev.
(Reed College Project), 5 3/8% due 7/1/2025....................................... NR/A+ 2,678,658
1,250,000 Oregon Health Sciences University Rev., 5 1/4% due 7/1/2028......................... Aaa/AAA 1,149,525
15,000 Oregon Housing Agency Mortgage Rev. (Single Family Mortgage Program),
7 3/8% due 7/1/2020*.............................................................. Aa1/NR 15,355
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+ 1,971,860
945,000 Oregon Housing & Community Services Department Mortgage Rev. (Single Family
Mortgage Program), 5.65% due 7/1/2019*........................................... Aa/NR 894,594
900,000 Oregon Housing & Community Services Department Mortgage Rev. (Single Family
Mortgage Program), 7% due 7/1/2022*.............................................. Aa/NR 930,141
1,000,000 Oregon Housing & Community Services Department Mortgage Rev. (Single Family
Mortgage Program), 6% due 7/1/2027*.............................................. Aa/NR 983,440
500,000 Oregon State GOs (Veterans' Welfare), 9% due 10/1/2006............................. Aa/AA 642,765
1,500,000 Oregon State GOs (Veterans' Welfare), 5 7/8% due 10/1/2018......................... Aa/AA 1,499,085
500,000 Oregon State GOs (Alternate Energy Project), 8.40% due 1/1/2008.................... Aa/AA 543,170
250,000 Oregon State GOs (Elderly & Disabled Housing), 7.20% due 8/1/2021.................. Aa/AA 260,400
1,000,000 Oregon State GOs (Elderly & Disabled Housing), 6.60% due 8/1/2022*................. Aa/AA 1,050,790
950,000 Port of Portland, OR International Airport Rev., 7.10% due 7/1/2021*............... Aaa/AAA 1,084,444
50,000 Port of Portland, OR International Airport Rev., 7.10% due 7/1/2021*............... Aaa/AAA 54,076
500,000 Port of Portland, OR International Airport Rev., 5 3/4% due 7/1/2025*.............. Aaa/AAA 485,685
1,500,000 Port of Portland, OR International Airport Rev., 5 5/8% due 7/1/2026*.............. Aaa/AAA 1,422,135
2,000,000 Portland, OR GOs, 5.60% due 6/1/2014............................................... Aa/NR 1,990,240
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
March 31, 1997
____________________________________________________________________________________________________________________________________
OREGON SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$1,250,000 Portland, OR Hospital Facilities Authority Rev. (Legacy Health System),
6 5/8% due 5/1/2011............................................................. Aaa/AAA $ 1,332,125
3,000,000 Portland, OR Sewer System Rev., 6% due 10/1/2012.................................. Aaa/AAA 3,091,170
1,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2026... Baa1/A 931,350
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036.... Baa1/A 931,840
630,000 Puerto Rico Housing Finance Corp. (Single Family Mortgage Rev.),
6.85% due 10/15/2023............................................................ Aaa/AAA 657,172
1,000,000 Puerto Rico Ports Authority Rev., 7% due 7/1/2014*................................ Aaa/AAA 1,087,820
1,000,000 Puerto Rico Telephone Authority Rev., 5 1/2% due 1/1/2013.......................... A/A+ 974,230
2,600,000 Salem, OR Pedestrian Safety Improvements GOs, 5 3/4% due 5/1/2011................. Aaa/AAA 2,645,838
1,000,000 Tri-County Metropolitan Transportation District of Oregon GOs (Light Rail
Extension), 6% due 7/1/2012..................................................... Aa/AA+ 1,022,330
1,110,000 Tualatin Development Commission, OR (Urban Renewal & Redevelopment),
7 3/8% due 1/1/2007.............................................................. Baa1/NR 1,117,726
2,000,000 Unified Sewerage Agency Washington County, OR Sewer Rev., 6 1/8% due 10/1/2012..... Aaa/AAA 2,075,980
------------
Total Municipal Bonds (Cost $52,793,853)-- 96.8%............................................... 53,822,674
Variable Rate Demand Notes (Cost $900,000)-- 1.6%.............................................. 900,000
Other Assets Less Liabilities-- 1.6%........................................................... 893,867
------------
NET ASSETS-- 100.0%............................................................................ $55,616,541
------------
SOUTH CAROLINA SERIES
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$1,125,000 Anderson County, SC GOs, 7 3/4% due 4/1/2009........................................ NR/A $ 1,158,750
2,500,000 Anderson County, SC Hospital Rev. (Anderson Memorial Hospital), 5 1/4% due 2/1/2012. Aaa/AAA 2,397,825
3,800,000 Berkeley County, SC Water & Sewer Rev., 5.55% due 6/1/2016......................... Aaa/AAA 3,639,792
3,000,000 Charleston County, SC Hospital Facilities Rev. (Bon Secours Health System Project),
5 5/8% due 8/15/2025............................................................. Aaa/AAA 2,827,860
745,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 2/1/2004............................................................... A1/A 792,635
770,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 8/1/2004............................................................... A1/A 819,234
800,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.20% due 2/1/2005............................................................... A1/A 851,912
750,000 Charleston, SC Waterworks & Sewer System Rev., 7 3/4% due 1/1/2011.................. Aaa/AAA 786,323
2,500,000 Charleston, SC Waterworks & Sewer System Rev., 6% due 1/1/2012..................... A1/AA- 2,506,600
1,500,000 Clemson University, SC Student & Faculty Housing Rev., 6.65% due 6/1/2011. Aaa/AAA 1,585,005
1,000,000 Clinton, SC Utility System Rev., 7.20% due 6/1/2011................................ A/NR 1,064,030
6,000,000 Darlington County, SC Industrial Development Rev. (Nucor Corporation Project),
5 3/4% due 8/1/2023*.............................................................. A1/AA- 5,911,440
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
21
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
PORTFOLIO OF INVESTMENTS (continued)
____________________________________________________________________________________________________________________________________
SOUTH CAROLINA SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$2,000,000 Darlington County, SC Industrial Development Rev. (Sonoco Products Company
Project), 6% due 4/1/2026........................................................ A2/A $ 1,993,720
2,500,000 Fairfield County, SC Pollution Control Rev. (South Carolina Electric & Gas
Company), 6 1/2% due 9/1/2014..................................................... A1/A 2,670,875
1,000,000 Georgetown County, SC Pollution Control Facilities Rev. (International Paper
Company), 7 3/8% due 6/15/2005.................................................... A3/A- 1,056,310
3,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5 1/2% due 5/1/2016........ NR/AA- 2,866,800
2,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5 1/4% due 5/1/2023........ A3/AA- 1,808,240
3,000,000 Greenwood County, SC Hospital Facilities Rev. (Self Memorial Hospital),
5 7/8% due 10/1/2017.............................................................. Aaa/AAA 2,980,560
2,425,000 Lancaster County, SC School District GOs, 6.60% due 7/1/2011........................ Aaa/AAA 2,602,122
2,600,000 Lancaster County, SC School District GOs, 6.60% due 7/1/2012........................ Aaa/AAA 2,789,904
2,000,000 Lancaster County, SC Waterworks & Sewer System Rev., 5 1/4% due 5/1/2021............. Aaa/AAA 1,817,180
2,720,000 Laurens County, SC Combined Utility System Rev., 5% due 1/1/2018.................... Aaa/AAA 2,420,038
1,650,000 Laurens County, SC Combined Utility System Rev., 7 5/8% due 1/1/2018................ Aaa/AAA 1,744,446
500,000 Laurens County, SC Health Care System, 7.80% due 1/1/2008........................... Aaa/AAA 524,310
1,000,000 Lexington County School District, SC Certificates of Participation (Red Bank/White
Knoll Elementary Project), 7.10% due 9/1/2011..................................... Aaa/AAA 1,094,160
1,000,000 Medical University South Carolina Hospital Facilities Rev., 5.60% due 7/1/2011...... Aaa/AAA 1,013,050
4,000,000 Mount Pleasant, SC Water & Sewer Rev., 6% due 12/1/2020............................. Aaa/AAA 4,011,760
2,000,000 Myrtle Beach, SC Waterworks & Sewer System Rev., 5 1/4% due 3/1/2020................. Aaa/AAA 1,819,020
1,500,000 North Charleston Sewer District, SC Rev., 6 3/8% due 7/1/2012........................ Aaa/AAA 1,648,035
1,500,000 North Charleston Sewer District, SC Rev., 7 3/4% due 8/1/2018........................ Aaa/AAA 1,601,070
5,000,000 Oconee County, SC Pollution Control Rev. (Duke Power Co. Project),
5.80% due 4/1/2014................................................................ Aa2/AA- 5,058,300
1,250,000 Piedmont Municipal Power Agency, SC Electric Rev., 6 1/4% due 1/1/2021............... Aaa/AAA 1,331,963
4,000,000 Piedmont Municipal Power Agency, SC Electric Rev., 6.30% due 1/1/2022............... Aaa/AAA 4,148,240
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2%, due 7/1/2036..... Baa1/A 931,840
1,000,000 Puerto Rico Telephone Authority Rev., 5 1/2% due 1/1/2022............................ A/A+ 954,430
2,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp Corp. Project),
7.45% due 4/1/2021*............................................................... A1/A- 2,181,080
1,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp Corp. Project),
7 1/8% due 9/1/2021*............................................................... A1/A- 1,068,060
1,000,000 Rock Hill, SC Combined Utilities System Rev., 8% due 1/1/2018....................... Aaa/AAA 1,050,180
5,000,000 Rock Hill, SC Combined Utilities System Rev., 5% due 1/1/2020....................... Aaa/AAA 4,394,600
1,000,000 St. Andrews, SC Public Service District Sewer Systems Rev., 7 3/4% due 1/1/2018...... Aaa/AAA 1,048,430
6,000,000 South Carolina Public Service Authority Rev., 5 7/8% due 1/1/2023................... Aaa/AAA 5,940,420
1,740,000 South Carolina State Housing Authority (Single Family Mortgage Purchase),
6.70% due 7/1/2010................................................................ Aaa/AAA 1,770,154
500,000 South Carolina State Housing Finance & Development Authority (Homeownership
Mortgage), 7.55% due 7/1/2011..................................................... Aa/AA 522,800
2,265,000 South Carolina State Housing Finance & Development Authority Rental Housing Rev.
(North Bluff Project), 5.60% due 7/1/2016......................................... NR/AA 2,174,626
1,000,000 South Carolina State Housing Finance & Development Authority (Multi-Family
Development Rev.), 6 7/8% due 11/15/2023......................................... Aaa/NR 1,035,390
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal minimum tax.
See Notes to Financial Statements.
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
March 31, 1997
____________________________________________________________________________________________________________________________________
SOUTH CAROLINA SERIES (continued)
<S> <C> <C> <C>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
-------- --------------------- ----------------- -------------
$4,000,000 Spartanburg,SCWater System Rev., 6.10% due 6/1/2021 ............................... Aaa/AAA $ 4,041,520
3,000,000 University of South Carolina Rev., 5 3/4% due 6/1/2026 ............................. Aaa/AAA 2,925,210
2,000,000 Western Carolina Regional Sewer Authority, SC Sewer System Rev., 5 1/2% due 3/1/2010 Aaa/AAA 2,004,980
------------
Total Municipal Bonds (Cost $101,150,518)-- 98.9% .............................................. 103,385,229
Other Assets Less Liabilities-- 1.1% ........................................................... 1,141,612
------------
NET ASSETS-- 100.0% ............................................................................ $104,526,841
============
_______________________
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
23
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================================
STATEMENTS OF ASSETS AND LIABILITIES
_____________________________________________________________________________________________________________________
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 .................... $ 94,214,030 $48,602,301 $ 49,549,419 $54,108,337 $52,495,478
Short-term holdings ................... 8,000,000 -- 400,000 600,000 900,000
------------- ----------- ------------ ----------- -----------
102,214,030 48,602,301 49,949,419 54,708,337 53,395,478
Cash ..................................... 268,196 113,168 246,311 207,118 75,602
Interest receivable ...................... 1,573,347 932,653 882,826 966,895 1,017,064
Receivable for securities sold ........... 660,000 5,033 -- -- --
Expenses prepaid to shareholder
service agent ......................... 13,588 7,134 7,474 6,794 9,851
Receivable for Capital Stock sold ........ 4,982 4,371 492 286 32,248
Other .................................... 11,212 5,598 5,551 5,431 21,875
------------- ----------- ------------ ----------- -----------
Total Assets ............................. 104,745,355 49,670,258 51,092,073 55,894,861 54,552,118
------------- ----------- ------------ ----------- -----------
LIABILITIES:
Payable for securities purchased ......... 7,283,083 -- -- -- --
Dividends payable ........................ 191,211 95,683 96,745 110,943 106,042
Payable for Capital Stock repurchased .... 172,522 77,193 211,479 66,755 27,455
Payable to custodian ..................... -- -- -- -- --
Accrued expenses, taxes, and other ....... 115,696 68,394 68,904 72,366 68,389
------------- ----------- ------------ ----------- -----------
Total Liabilities ........................ 7,762,512 241,270 377,128 250,064 201,886
------------- ----------- ------------ ----------- -----------
Net Assets ............................... $ 96,982,843 $49,428,988 $ 50,714,945 $55,644,797 $54,350,232
============= =========== ============ =========== ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ................................ $ 12,444 $ 6,795 $ 6,232 $ 6,887 $ 6,671
Class D ................................ 263 34 295 51 243
Additional paid-in capital ............... 99,585,708 48,895,966 49,700,679 53,943,445 52,866,191
Undistributed/accumulated net realized
gain (loss) ........................... (3,274,611) 77,849 (28,476) 35,603 256,444
Net unrealized appreciation of investments 659,039 448,344 1,036,215 1,658,811 1,220,683
------------- ----------- ------------ ----------- -----------
Net Assets ............................... $ 96,982,843 $49,428,988 $ 50,714,945 $55,644,797 $54,350,232
============= =========== ============ =========== ===========
NET ASSETS:
Class A .................................. $ 94,979,587 $49,180,018 $ 48,418,276 $55,238,854 $52,440,230
Class D .................................. $ 2,003,256 $ 248,970 $ 2,296,669 $ 405,943 $ 1,910,002
SHARES OF CAPITAL STOCK OUTSTANDING
($.001 par value):
Class A .................................. 12,444,094 6,795,275 6,231,599 6,887,280 6,670,857
CLASS D .................................. 262,661 34,419 295,000 50,628 242,787
NET ASSET VALUE PER SHARE:
Class A .................................. $ 7.63 $ 7.24 $ 7.77 $ 8.02 $ 7.86
Class D .................................. $ 7.63 $ 7.23 $ 7.79 $ 8.02 $ 7.87
_______________
See Notes to Financial Statements.
24
<PAGE>
=====================================================================================================================
March 31, 1997
_____________________________________________________________________________________________________________________
MASSACHUSETTS MICHIGAN MINNESOTA MISSOURI
SERIES SERIES SERIES SERIES
------------- ------------ -------------- -------------
ASSETS:
Investments, at value (see portfolios
of investments):
Long-term holdings .................... $102,924,496 $140,137,969 $ 118,605,000 $50,398,341
Short-term holdings ................... 400,000 200,000 4,900,000 1,400,000
------------ ------------ ------------- -----------
103,324,496 140,337,969 123,505,039 51,798,341
Cash ..................................... 273,714 300,810 76,121 55,760
Interest receivable ...................... 1,800,539 2,751,054 1,820,056 1,033,984
Receivable for securities sold ........... -- -- -- --
Expenses prepaid to shareholder
service agent ......................... 16,646 19,024 20,722 6,454
Receivable for Capital Stock sold ........ 572 57,257 11,633 809
Other .................................... 11,351 11,091 12,259 6,534
------------ ------------ ------------- -----------
Total Assets ............................. 105,427,318 143,477,205 125,445,830 52,901,882
------------ ------------ ------------- -----------
LIABILITIES:
Payable for securities purchased ......... -- -- -- --
Dividends payable ........................ 211,820 287,883 252,898 100,748
Payable for Capital Stock repurchased .... 197,634 165,571 95,971 94,494
Payable to custodian ..................... -- -- -- --
Accrued expenses, taxes, and other ....... 104,309 146,068 135,827 80,297
------------ ------------ ------------- -----------
Total Liabilities ........................ 513,763 599,522 484,696 275,539
------------ ------------ ------------- -----------
Net Assets ............................... $104,913,555 $142,877,683 $ 124,961,134 $52,626,343
============ ============ ============= ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ................................ $ 13,427 $ 17,057 $ 16,164 $ 6,923
Class D ................................ 195 175 234 58
Additional paid-in capital ............... 103,142,965 138,571,229 121,298,306 51,640,756
Undistributed/accumulated net realized
gain (loss) ........................... 319,640 933,387 (752,801) 369,999
Net unrealized appreciation of investments 1,437,328 3,355,835 4,399,231 608,607
------------ ------------ ------------- -----------
Net Assets ............................... $104,913,555 $142,877,683 $ 124,961,134 $52,626,343
============ ============ ============= ===========
NET ASSETS:
Class A .................................. $103,409,850 $141,426,166 $ 123,173,725 $52,186,499
Class D .................................. $ 1,503,705 $ 1,451,517 $ 1,787,409 $ 439,844
SHARES OF CAPITAL STOCK OUTSTANDING
($.001 par value):
Class A .................................. 13,427,279 17,056,731 16,163,984 6,922,627
CLASS D .................................. 195,348 175,186 234,512 58,337
NET ASSET VALUE PER SHARE:
Class A .................................. $ 7.70 $ 8.29 $ 7.62 $ 7.54
Class D .................................. $ 7.70 $ 8.29 $ 7.62 $ 7.54
NEW YORK OHIO OREGON SOUTH CAROLINA
SERIES SERIES SERIES SERIES
------------- ------------- ----------- -------------
ASSETS:
Investments, at value (see portfolios
of investments):
Long-term holdings .................... $ 79,404,543 $151,173,677 $ 53,822,674 $103,385,229
Short-term holdings ................... -- 900,000 900,000 --
------------ ------------ ------------ ------------
79,404,543 152,073,677 54,722,674 103,385,229
Cash ..................................... 225,555 213,376 3,524 --
Interest receivable ...................... 1,309,019 2,636,809 1,081,576 1,764,102
Receivable for securities sold ........... -- -- -- --
Expenses prepaid to shareholder
service agent ......................... 11,210 21,062 8,153 15,287
Receivable for Capital Stock sold ........ 107,172 68,435 2,857 111,841
Other .................................... 7,471 12,002 8,483 8,537
------------ ------------ ------------ ------------
Total Assets ............................. 81,064,970 155,025,361 55,827,267 105,284,996
------------ ------------ ------------ ------------
LIABILITIES:
Payable for securities purchased ......... -- -- -- --
Dividends payable ........................ 165,544 314,800 105,208 207,806
Payable for Capital Stock repurchased .... 15,332 65,868 31,228 196,742
Payable to custodian ..................... -- -- -- 241,956
Accrued expenses, taxes, and other ....... 97,236 164,004 74,290 111,651
------------ ------------ ------------ ------------
Total Liabilities ........................ 278,112 544,672 210,726 758,155
------------ ------------ ------------ ------------
Net Assets ............................... $ 80,786,858 $154,480,689 $ 55,616,541 $104,526,841
============ ============ ============ ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ................................ $ 10,091 $ 19,342 $ 7,167 $ 12,883
Class D ................................ 157 120 182 409
Additional paid-in capital ............... 79,021,076 148,972,644 54,392,847 102,086,962
Undistributed/accumulated net realized
gain (loss) ........................... 18,478 691,037 187,524 191,876
Net unrealized appreciation of investments 1,737,056 4,797,546 1,028,821 2,234,711
------------ ------------ ------------ ------------
Net Assets ............................... $ 80,786,858 $154,480,689 $ 55,616,541 $104,526,841
============ ============ ============ ============
NET ASSETS:
Class A .................................. $ 79,545,741 $153,520,733 $ 54,239,820 $101,311,052
Class D .................................. $ 1,241,117 $ 959,956 $ 1,376,721 $ 3,215,789
SHARES OF CAPITAL STOCK OUTSTANDING
($.001 par value):
Class A .................................. 10,091,050 19,341,570 7,167,065 12,882,466
CLASS D .................................. 157,306 120,361 182,047 409,309
NET ASSET VALUE PER SHARE:
Class A .................................. $ 7.88 $ 7.94 $ 7.57 $ 7.86
Class D .................................. $ 7.89 $ 7.98 $ 7.56 $ 7.86
- --------------
See Notes to Financial Statements.
25
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================================
STATEMENTS OF OPERATIONS
_____________________________________________________________________________________________________________________
NATIONAL COLORADO GEORGIA LOUISIANA MARYLAND
SERIES SERIES SERIES SERIES SERIES
------------- ------------- ------------- ------------- -------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Interest .............................. $ 3,019,379 $ 1,531,693 $ 1,508,492 $ 1,697,275 $ 1,632,286
----------- ----------- ----------- ----------- -----------
EXPENSES:
Management fees ....................... 253,975 128,759 131,336 142,070 138,621
Shareholder account services .......... 69,948 38,460 38,235 34,435 46,597
Distribution and service fees ......... 63,803 23,089 34,188 28,616 34,208
Auditing and legal fees ............... 16,274 19,096 17,054 20,408 16,955
Custody and related services .......... 15,843 6,639 6,561 5,741 6,616
Registration .......................... 8,410 2,426 2,891 2,969 4,341
Shareholders' meeting ................. 4,612 2,883 2,645 2,059 3,081
Shareholder reports and communications 3,422 4,398 4,571 4,691 1,349
Directors' fees and expenses .......... 2,830 2,669 2,652 2,693 2,693
Miscellaneous ......................... 3,323 2,229 2,259 2,302 2,312
----------- ----------- ----------- ----------- -----------
Total Expenses ........................ 442,440 230,648 242,392 245,984 256,773
----------- ----------- ----------- ----------- -----------
Net Investment Income ................. 2,576,939 1,301,045 1,266,100 1,451,291 1,375,513
----------- ----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments (61,790) 115,782 (20,303) 38,579 320,207
Net change in unrealized appreciation
of investments ...................... (781,906) (326,297) (431,658) (282,210) (908,217)
----------- ----------- ----------- ----------- -----------
Net Loss on Investments ............... (843,696) (210,515) (451,961) (243,631) (588,010)
----------- ----------- ----------- ----------- -----------
Increase in Net Assets from
Operations .......................... $ 1,733,243 $ 1,090,530 $ 814,139 $ 1,207,660 $ 787,503
=========== =========== =========== =========== ===========
________
See Notes to Financial Statements.
26
<PAGE>
===================================================================================================
For the Six Months Ended March 31, 1997
___________________________________________________________________________________________________
MASSACHUSETTS MICHIGAN MINNESOTA MISSOURI
SERIES SERIES SERIES SERIES
-------------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .............................. $ 3,274,807 $ 4,439,994 $ 3,856,513 $ 1,515,488
----------- ----------- ----------- -----------
EXPENSES:
Management fees ....................... 274,182 367,394 316,975 129,939
Shareholder account services .......... 78,581 99,479 103,446 36,983
Distribution and service fees ......... 57,075 77,161 70,151 28,711
Auditing and legal fees ............... 17,647 16,855 18,473 18,377
Custody and related services .......... 14,206 21,223 16,033 6,633
Registration .......................... 5,913 4,226 4,697 3,735
Shareholders' meeting ................. 4,987 7,197 7,862 2,867
Shareholder reports and communications 2,707 5,200 3,296 5,086
Directors' fees and expenses .......... 2,765 2,752 2,765 2,669
Miscellaneous ......................... 2,787 4,353 4,446 2,186
----------- ----------- ----------- -----------
Total Expenses ........................ 460,850 605,840 548,144 237,186
----------- ----------- ----------- -----------
Net Investment Income ................. 2,813,957 3,834,154 3,308,369 1,278,302
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments 324,745 939,714 686,627 374,990
Net change in unrealized appreciation
of investments ...................... (1,258,094) (2,226,419) (1,693,112) (1,011,603)
----------- ----------- ----------- -----------
Net Loss on Investments ............... (933,349) (1,286,705) (1,006,485) (636,613)
----------- ----------- ----------- -----------
Increase in Net Assets from
Operations .......................... $ 1,880,608 $ 2,547,449 $ 2,301,884 $ 641,689
=========== =========== =========== ===========
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
SOUTH
NEW YORK OHIO OREGON CAROLINA
SERIES SERIES SERIES SERIES
------------- ------------- ------------ --------------
INVESTMENT INCOME:
Interest .............................. $ 2,457,300 $ 4,796,286 $ 1,674,933 $ 3,221,208
----------- ----------- ----------- -----------
EXPENSES:
Management fees ....................... 207,168 397,691 143,831 272,300
Shareholder account services .......... 54,044 107,358 41,755 75,785
Distribution and service fees ......... 42,312 80,130 34,117 65,255
Auditing and legal fees ............... 16,272 16,853 18,704 16,880
Custody and related services .......... 6,632 18,188 9,521 15,391
Registration .......................... 4,132 4,811 3,203 3,725
Shareholders' meeting ................. 3,119 7,673 3,136 4,888
Shareholder reports and communications 5,570 4,707 4,770 2,533
Directors' fees and expenses .......... 2,765 2,765 2,665 2,652
Miscellaneous ......................... 2,849 5,403 2,379 3,511
----------- ----------- ----------- -----------
Total Expenses ........................ 344,863 645,579 264,081 462,920
----------- ----------- ----------- -----------
Net Investment Income ................. 2,112,437 4,150,707 1,410,852 2,758,288
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments 19,766 700,992 217,441 194,385
Net change in unrealized appreciation
of investments ...................... (761,376) (2,321,691) (480,769) (1,266,423)
----------- ----------- ----------- -----------
Net Loss on Investments ............... (741,610) (1,620,699) (263,328) (1,072,038)
----------- ----------- ----------- -----------
Increase in Net Assets from
Operations .......................... $ 1,370,827 $ 2,530,008 $ 1,147,524 $ 1,686,250
=========== =========== =========== ===========
27
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
===============================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
_______________________________________________________________________________________________________________
NATIONAL SERIES COLORADO SERIES
---------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/97 9/30/96 3/31/97 9/30/96
------------ ------------- ------------- --------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ..................... $ 2,576,939 $ 5,411,626 $ 1,301,045 $ 2,708,720
Net realized gain (loss) on investments ... (61,790) 1,270,012 115,782 230,074
Net change in unrealized
appreciation of investments ............ (781,906) 477,663 (326,297) (404,283)
------------- ------------- ------------- -------------
Increase in net assets from operations .... 1,733,243 7,159,301 1,090,530 2,534,511
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ................................ (2,490,350) (5,337,292) (1,295,825) (2,698,764)
Class D ................................ (86,589) (74,334) (5,220) (9,956)
Net realized gain on investments:
Class A ................................ -- -- -- --
Class D ................................ -- -- -- --
------------- ------------- ------------- -------------
Decrease in net assets from distributions . (2,576,939) (5,411,626) (1,301,045) (2,708,720)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
CLASS A ................................ 1,407,119 6,105,129 477,413 1,368,525
Class D ................................ 319,961 940,723 27,650 56,953
Net asset value of shares issued in
payment of dividends:
Class A ................................ 1,341,378 2,793,160 702,334 1,465,852
Class D ................................ 59,802 56,590 3,187 5,835
Exchanged from associated Funds:
Class A ................................ 2,531,138 30,244,931 1,363,276 1,429,514
Class D ................................ 16,229,852 8,276,409 -- 1,923
Net asset value of shares issued in payment
of gain distribution:
Class A ................................ -- -- -- --
Class D ................................ -- -- -- --
------------- ------------- ------------- -------------
Total ..................................... 21,889,250 48,416,942 2,573,860 4,328,602
------------- ------------- ------------- -------------
Cost of shares repurchased:
Class A ................................ (5,018,249) (13,127,822) (3,018,053) (5,606,419)
Class D ................................ (505,682) (326,631) (7,483) (1,000)
Exchanged into associated Funds:
Class A ................................ (3,175,585) (33,145,022) (2,430,792) (1,047,428)
Class D ................................ (18,956,548) (5,370,882) (28,158) --
------------- ------------- ------------- -------------
Total ..................................... (27,656,064) (51,970,357) (5,484,486) (6,654,847)
------------- ------------- ------------- -------------
Decrease in net assets
from capital share transactions ........ (5,766,814) (3,553,415) (2,910,626) (2,326,245)
------------- ------------- ------------- -------------
Decrease in net assets .................... (6,610,510) (1,805,740) (3,121,141) (2,500,454)
NET ASSETS:
Beginning of period ....................... 103,593,353 105,399,093 52,550,129 55,050,583
------------- ------------- ------------- -------------
End of period ............................. $ 96,982,843 $ 103,593,353 $ 49,428,988 $ 52,550,129
============= ============= ============= =============
- -----------------
See Notes to Financial Statements.
28
<PAGE>
=====================================================================================================================
_____________________________________________________________________________________________________________________
GEORGIA SERIES LOUISIANA SERIES
---------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/97 9/30/96 3/31/97 9/30/96
------------ -------------- ------------- ---------
OPERATIONS:
Net investment income ..................... $ 1,266,100 $ 2,794,673 $ 1,451,291 $ 3,108,490
Net realized gain (loss) on investments ... (20,303) 234,736 38,579 764,403
Net change in unrealized
appreciation of investments ............ (431,658) 574,897 (282,210) (27,213)
------------ ------------ ------------ ------------
Increase in net assets from operations .... 814,139 3,604,306 1,207,660 3,845,680
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ................................ (1,223,962) (2,697,792) (1,443,112) (3,091,821)
Class D ................................ (42,138) (96,881) (8,179) (16,669)
Net realized gain on investments:
Class A ................................ (180,236) (395,597) (753,044) (467,263)
Class D ................................ (6,873) (14,504) (5,217) (3,540)
------------ ------------ ------------ ------------
Decrease in net assets from distributions . (1,453,209) (3,204,774) (2,209,552) (3,579,293)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
CLASS A ................................ 853,121 2,193,735 583,791 2,360,417
Class D ................................ 512,753 1,001,710 34,710 95,464
Net asset value of shares issued in
payment of dividends:
Class A ................................ 811,423 1,741,886 738,638 1,645,661
Class D ................................ 34,529 77,107 4,772 10,639
Exchanged from associated Funds:
Class A ................................ 191,274 290,528 21,008 4,573
Class D ................................ 21,346 7,853 -- --
Net asset value of shares issued in payment
of gain distribution:
Class A ................................ 140,329 304,162 518,498 317,865
Class D ................................ 6,295 13,827 3,466 3,070
------------ ------------ ------------ ------------
Total ..................................... 2,571,070 5,630,808 1,904,883 4,437,689
------------ ------------ ------------ ------------
Cost of shares repurchased:
Class A ................................ (3,387,899) (10,153,419) (2,834,434) (8,844,981)
Class D ................................ (460,390) (419,468) (19,087) (185,368)
Exchanged into associated Funds:
Class A ................................ (575,845) (1,457,061) (58,354) (467,638)
Class D ................................ (115,286) (435,462) -- (5,400)
------------ ------------ ------------ ------------
Total ..................................... (4,539,420) (12,465,410) (2,911,875) (9,503,387)
------------ ------------ ------------ ------------
Decrease in net assets
from capital share transactions ........ (1,968,350) (6,834,602) (1,006,992) (5,065,698)
------------ ------------ ------------ ------------
Decrease in net assets .................... (2,607,420) (6,435,070) (2,008,884) (4,799,311)
NET ASSETS:
Beginning of period ....................... 53,322,365 59,757,435 57,653,681 62,452,992
------------ ------------ ------------ ------------
End of period ............................. $ 50,714,945 $ 53,322,365 $ 55,644,797 $ 57,653,681
------------ ------------ ------------ ------------
MARYLAND SERIES MASSACHUSETTS SERIES
------------------------------ ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/97 9/30/96 3/31/97 9/30/96
------------- ------------ ------------- ------------
OPERATIONS:
Net investment income ..................... $ 1,375,513 $ 2,850,710 $ 2,813,957 $ 5,969,270
Net realized gain (loss) on investments ... 320,207 237,843 324,745 1,211,500
Net change in unrealized
appreciation of investments ............ (908,217) 207,699 (1,258,094) (502,191)
------------- ------------- ------------- -------------
Increase in net assets from operations .... 787,503 3,296,252 1,880,608 6,678,579
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ................................ (1,334,227) (2,793,641) (2,783,571) (5,917,218)
Class D ................................ (41,286) (57,069) (30,386) (52,052)
Net realized gain on investments:
Class A ................................ (281,130) (237,764) (1,068,791) (1,556,813)
Class D ................................ (11,087) (3,924) (14,031) (12,717)
------------- ------------- ------------- -------------
Decrease in net assets from distributions . (1,667,730) (3,092,398) (3,896,779) (7,538,800)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
CLASS A ................................ 605,335 2,002,265 1,226,433 3,289,916
Class D ................................ 251,960 1,482,760 149,994 664,274
Net asset value of shares issued in
payment of dividends:
Class A ................................ 771,279 1,630,540 1,642,038 3,456,082
Class D ................................ 37,367 47,295 18,176 33,741
Exchanged from associated Funds:
Class A ................................ 463,783 1,117,092 5,709,091 4,648,026
Class D ................................ -- -- 8,924 180,514
Net asset value of shares issued in payment
of gain distribution:
Class A ................................ 205,081 175,287 774,630 1,131,226
Class D ................................ 10,110 3,460 9,688 9,793
------------- ------------- ------------- -------------
Total ..................................... 2,344,915 6,458,699 9,538,974 13,413,572
------------- ------------- ------------- -------------
Cost of shares repurchased:
Class A ................................ (2,383,913) (6,209,930) (5,484,909) (12,032,238)
Class D ................................ (305,021) (122,344) (50,399) (239,034)
Exchanged into associated Funds:
Class A ................................ (413,841) (1,151,307) (8,341,608) (5,473,480)
Class D ................................ (99,960) (10,726) (8,905) (133,437)
------------- ------------- ------------- -------------
Total ..................................... (3,202,735) (7,494,307) (13,885,821) (17,878,189)
------------- ------------- ------------- -------------
Decrease in net assets
from capital share transactions ........ (857,820) (1,035,608) (4,346,847) (4,464,617)
------------- ------------- ------------- -------------
Decrease in net assets .................... (1,738,047) (831,754) (6,363,018) (5,324,838)
NET ASSETS:
Beginning of period ....................... 56,088,279 56,920,033 111,276,573 116,601,411
------------- ------------- ------------- -------------
End of period ............................. $ 54,350,232 $ 56,088,279 $ 104,913,555 $ 111,276,573
------------- ------------- ------------- -------------
29
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (continued)
_____________________________________________________________________________________________________________________
MICHIGAN SERIES MINNESOTA SERIES
------------------------------ ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/97 9/30/96 3/31/97 9/30/96
-------------- ------------- -------------- ------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ..................... $ 3,834,154 $ 8,012,309 $ 3,308,369 $ 7,189,682
Net realized gain (loss) on investments ... 939,714 1,595,202 686,627 (1,345,678)
Net change in unrealized
appreciation of investments ............ (2,226,419) (620,275) (1,693,112) (718,882)
------------- ------------- ------------- -------------
Increase in net assets from operations .... 2,547,449 8,987,236 2,301,884 5,125,122
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ................................ (3,801,120) (7,945,727) (3,264,405) (7,091,290)
Class D ................................ (33,034) (66,582) (43,964) (98,392)
Net realized gain on investments:
Class A ................................ (1,581,301) (2,526,473) -- (339,461)
Class D ................................ (17,780) (24,970) -- (5,862)
------------- ------------- ------------- -------------
Decrease in net assets from distributions . (5,433,235) (10,563,752) (3,308,369) (7,535,005)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A ................................ 2,056,970 5,017,723 4,377,656 5,136,193
Class D ................................ 245,895 643,962 117,634 355,058
Net asset value of shares issued in payment
of dividends:
Class A ................................ 2,304,303 4,892,727 2,210,647 4,809,942
Class D ................................ 23,039 43,735 30,875 74,558
Exchanged from associated Funds:
Class A ................................ 4,753,899 2,197,763 185,278 496,211
Class D ................................ 200,705 210,059 -- 48,646
Net asset value of shares issued in payment
of gain distribution:
Class A ................................ 1,180,119 1,901,806 -- 270,799
Class D ................................ 13,960 21,146 -- 4,666
------------- ------------- ------------- -------------
Total ..................................... 10,778,890 14,928,921 6,922,090 11,196,073
------------- ------------- ------------- -------------
Cost of shares repurchased:
Class A ................................ (8,123,733) (13,211,454) (7,072,948) (13,463,390)
Class D ................................ (384,695) (368,116) (344,115) (507,655)
EXCHANGED INTO ASSOCIATED FUNDS:
Class A ................................ (6,068,908) (2,652,409) (1,707,128) (1,423,552)
Class D ................................ (102,397) (217,280) (39,298) (135,371)
------------- ------------- ------------- -------------
Total ..................................... (14,679,733) (16,449,259) (9,163,489) (15,529,968)
------------- ------------- ------------- -------------
Increase (decrease) in net assets
from capital share transactions ........ (3,900,843) (1,520,338) (2,241,399) (4,333,895)
------------- ------------- ------------- -------------
Increase (decrease) in net assets ......... (6,786,629) (3,096,854) (3,247,884) (6,743,778)
NET ASSETS:
Beginning of period ....................... 149,664,312 152,761,166 128,209,018 134,952,796
------------- ------------- ------------- -------------
End of period ............................. $ 142,877,683 $ 149,664,312 $ 124,961,134 $ 128,209,018
============= ============= ============= =============
___________
See Notes to Financial Statements.
30
<PAGE>
=====================================================================================================================
_____________________________________________________________________________________________________________________
MISSOURI SERIES NEW YORK SERIES
------------------------------ -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/97 9/30/96 3/31/97 9/30/96
------------- ------------- ------------- -------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ..................... $ 1,278,302 $ 2,553,696 $ 2,112,437 $ 4,425,553
Net realized gain (loss) on investments ... 374,990 702,168 19,766 1,161,126
Net change in unrealized
appreciation of investments ............ (1,011,603) (147,019) (761,376) 36,180
------------ ------------ ------------ ------------
Increase in net assets from operations .... 641,689 3,108,845 1,370,827 5,622,859
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ................................ (1,267,515) (2,529,631) (2,086,651) (4,381,889)
Class D ................................ (10,787) (24,065) (25,786) (43,664)
Net realized gain on investments:
Class A ................................ (542,355) (477,820) (213,515) --
Class D ................................ (5,999) (5,541) (3,062) --
------------ ------------ ------------ ------------
Decrease in net assets from distributions . (1,826,656) (3,037,057) (2,329,014) (4,425,553)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A ................................ 4,674,327 2,604,871 2,540,115 3,350,809
Class D ................................ 7,200 354,207 149,854 411,499
Net asset value of shares issued in payment
of dividends:
Class A ................................ 656,613 1,314,503 1,185,421 2,485,560
Class D ................................ 8,751 15,852 17,862 31,604
Exchanged from associated Funds:
Class A ................................ 140,217 90,007 2,315,019 3,161,968
Class D ................................ 100 44,301 1,500 184,854
Net asset value of shares issued in payment
of gain distribution:
Class A ................................ 354,701 311,188 166,872 --
Class D ................................ 5,296 2,649 2,545 --
------------ ------------ ------------ ------------
Total ..................................... 5,847,205 4,737,578 6,379,188 9,626,294
------------ ------------ ------------ ------------
Cost of shares repurchased:
Class A ................................ (1,880,707) (4,836,102) (5,607,743) (9,268,664)
Class D ................................ (101,357) (304,921) (46,535) (258,544)
EXCHANGED INTO ASSOCIATED FUNDS:
Class A ................................ (526,680) (788,552) (2,830,032) (2,173,151)
Class D ................................ (33,582) (57,294) (21,391) (116,722)
------------ ------------ ------------ ------------
Total ..................................... (2,542,326) (5,986,869) (8,505,701) (11,817,081)
------------ ------------ ------------ ------------
Increase (decrease) in net assets
from capital share transactions ........ 3,304,879 (1,249,291) (2,126,513) (2,190,787)
------------ ------------ ------------ ------------
Increase (decrease) in net assets ......... 2,119,912 (1,177,503) (3,084,700) (993,481)
NET ASSETS:
Beginning of period ....................... 50,506,431 51,683,934 83,871,558 84,865,039
------------ ------------ ------------ ------------
End of period ............................. $ 52,626,343 $ 50,506,431 $ 80,786,858 $ 83,871,558
============ ============ ============ ============
OHIO SERIES OREGON SERIES
---------------------------- -------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
3/31/97 9/30/96 3/31/97 9/30/96
-------------- ------------- -------------- -------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ..................... $ 4,150,707 $ 8,922,203 $ 1,410,852 $ 3,107,679
Net realized gain (loss) on investments ... 700,992 1,396,965 217,441 286,078
Net change in unrealized
appreciation of investments ............ (2,321,691) (1,059,760) (480,769) (342,324)
------------- ------------- ------------- -------------
Increase in net assets from operations .... 2,530,008 9,259,408 1,147,524 3,051,433
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ................................ (4,129,995) (8,882,222) (1,381,288) (3,041,984)
Class D ................................ (20,712) (39,981) (29,564) (65,695)
Net realized gain on investments:
Class A ................................ (1,382,343) (794,088) (304,704) (61,975)
Class D ................................ (8,277) (3,482) (8,165) (1,566)
------------- ------------- ------------- -------------
Decrease in net assets from distributions . (5,541,327) (9,719,773) (1,723,721) (3,171,220)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A ................................ 1,837,689 4,520,137 1,003,867 3,453,799
Class D ................................ 113,045 348,741 102,371 410,708
Net asset value of shares issued in payment
of dividends:
Class A ................................ 2,572,963 5,490,252 876,641 1,922,589
Class D ................................ 18,345 34,422 22,055 51,715
Exchanged from associated Funds:
Class A ................................ 226,723 939,551 32,221 554,373
Class D ................................ -- 4,272 92,319 21,324
Net asset value of shares issued in payment
of gain distribution:
Class A ................................ 1,060,708 599,050 232,602 46,901
Class D ................................ 7,582 3,281 6,239 1,353
------------- ------------- ------------- -------------
Total ..................................... 5,837,055 11,939,706 2,368,315 6,462,762
------------- ------------- ------------- -------------
Cost of shares repurchased:
Class A ................................ (10,759,011) (16,177,726) (4,249,731) (7,135,242)
Class D ................................ (156,224) (24,324) (355,828) (304,546)
EXCHANGED INTO ASSOCIATED FUNDS:
Class A ................................ (667,850) (2,863,802) (438,770) (932,697)
Class D ................................ (15,479) (10,486) (16,515) (129,221)
------------- ------------- ------------- -------------
Total ..................................... (11,598,564) (19,076,338) (5,060,844) (8,501,706)
------------- ------------- ------------- -------------
Increase (decrease) in net assets
from capital share transactions ........ (5,761,509) (7,136,632) (2,692,529) (2,038,944)
------------- ------------- ------------- -------------
Increase (decrease) in net assets ......... (8,772,828) (7,596,997) (3,268,726) (2,158,731)
NET ASSETS:
Beginning of period ....................... 163,253,517 170,850,514 58,885,267 61,043,998
------------- ------------- ------------- -------------
End of period ............................. $ 154,480,689 $ 163,253,517 $ 55,616,541 $ 58,885,267
============= ============= ============= =============
31
</TABLE>
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
SOUTH CAROLINA SERIES
------------------------------
SIX MONTHS YEAR
ENDED ENDED
3/31/97 9/30/96
------------- -------------
OPERATIONS:
Net investment income ..................... $ 2,758,288 $ 5,818,944
Net realized gain on investments .......... 194,385 1,720,268
Net change in unrealized
appreciation of investments ............ (1,266,423) (81,642)
------------- -------------
Increase in net assets from operations .... 1,686,250 7,457,570
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ................................ (2,698,141) (5,721,911)
Class D ................................ (60,147) (97,033)
Net realized gain on investments:
Class A ................................ (1,667,625) (253,251)
Class D ................................ (42,381) (5,029)
------------- -------------
Decrease in net assets from distributions . (4,468,294) (6,077,224)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A ................................ 2,049,724 7,339,428
Class D ................................ 706,946 1,431,442
Net asset value of shares issued in payment
of dividends:
Class A ................................ 1,575,855 3,322,251
Class D ................................ 51,880 85,491
Exchanged from associated Funds:
Class A ................................ 305,050 844,016
Class D ................................ -- --
Net asset value of shares issued in payment
of gain distribution:
Class A ................................ 1,298,064 195,931
Class D ................................ 40,550 4,927
------------- -------------
TOTAL ..................................... 6,028,069 13,223,486
------------- -------------
Cost of shares repurchased:
Class A ................................ (8,560,333) (14,837,001)
Class D ................................ (151,555) (519,148)
Exchanged into associated Funds:
Class A ................................ (816,673) (2,478,917)
Class D ................................ (67,550) (16,928)
------------- -------------
Total ..................................... (9,596,111) (17,851,994)
------------- -------------
Decrease in net assets
from capital share transactions ........ (3,568,042) (4,628,508)
------------- -------------
Decrease in net assets .................... (6,350,086) (3,248,162)
NET ASSETS:
Beginning of period ....................... 110,876,927 114,125,089
------------- -------------
End of period ............................. $ 104,526,841 $ 110,876,927
============= =============
- ------------------
See Notes to Financial Statements.
32
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Seligman Municipal 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, the commencement date of Class D shares,
were classified as Class A shares. Class A shares are sold with an initial sales
charge of up to 4.75% and a continuing service fee of up to 0.25% on an annual
basis. Class A shares purchased in an amount of $1,000,000 or more are sold
without an initial sales charge but are subject to a contingent deferred sales
load ("CDSL") of 1% on redemptions within eighteen months of purchase. Class D
shares are sold without an initial sales charge but are subject to a
distribution fee of up to 0.75% and a service fee of up to 0.25% on an annual
basis, and a CDSL of 1% imposed on certain redemptions made within one year of
purchase. The two classes of shares for each Series represent interests in the
same portfolio of investments, have the same rights and are generally identical
in all respects except that each class bears its separate distribution and
certain other class expenses, and has exclusive voting rights with respect to
any matter on which a separate vote of any class is required.
2. The financial statements have been prepared in conformity with generally
accepted accounting principles which require management to make certain
estimates and assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the Fund:
a. All municipal 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 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 attributable to a particular class, are charged
directly to such class. For the six months ended March 31, 1997,
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 realized 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, 1997, were as follows:
SERIES PURCHASES SALES
- -------- ----------- -----------
National $11,746,238 $21,792,805
Colorado -- 2,018,250
Georgia 1,902,160 2,969,160
Louisiana 8,894,825 10,977,641
Maryland 5,462,960 6,793,900
Massachusetts 15,495,424 20,138,170
Michigan 10,962,466 15,845,815
Minnesota 1,489,485 8,860,565
Missouri 4,457,100 2,030,000
New York 10,000,775 11,700,530
Ohio 11,376,700 18,650,303
Oregon 4,389,360 8,855,760
South Carolina -- 4,317,125
33
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
At March 31, 1997, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes, and the tax
basis gross unrealized appreciation and depreciation of portfolio securities
were as follows:
TOTAL TOTAL
UNREALIZED UNREALIZED
SERIES APPRECIATION DEPRECIATION
- -------- ---------- ----------
National $2,101,523 $1,442,484
Colorado 2,072,378 1,624,034
Georgia 1,773,095 736,880
Louisiana 2,122,406 463,595
Maryland 1,826,140 605,457
Massachusetts 2,688,080 1,250,752
Michigan 4,188,940 833,105
Minnesota 5,543,548 1,144,317
Missouri 1,401,570 792,963
New York 2,311,901 574,845
Ohio 6,045,914 1,248,368
Oregon 1,463,458 434,637
South Carolina 3,077,614 842,903
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 $2,952 $22,378
Colorado 2,434 17,366
Georgia 4,357 31,126
Louisiana 2,860 22,069
Maryland 3,106 23,691
Massachusetts 5,156 39,074
Michigan 8,944 68,939
Minnesota 5,216 40,832
Missouri 1,920 15,046
New York 7,475 54,393
Ohio 8,629 65,227
Oregon 4,715 37,431
South Carolina 8,207 63,079
The Fund has an Administration, Shareholder Services and Distribution Plan (the
"Plan") with respect to distribution of its shares. Under the Plan, with respect
to Class A shares, 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, 1997, the Distributor charged such fees to the Fund pursuant to
the Plan as follows:
ANNUALIZED
TOTAL FEES % OF AVERAGE
SERIES PAID NET ASSETS
- -------- ------- ------------
National $43,157 .09%
Colorado 21,828 .09
Georgia 23,517 .09
Louisiana 26,672 .09
Maryland 24,092 .09
Massachusetts 49,902 .09
Michigan 69,520 .10
Minnesota 59,993 .10
Missouri 26,040 .10
New York 36,172 .09
Ohio 75,334 .10
OREGON 26,767 .10
South Carolina 50,881 .10
34
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
Under the Plan, with respect to Class D shares, 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, 1997, fees paid equivalent to 1%
per annum of the average daily net assets of Class D shares were as follows:
SERIES SERIES
- ------------------------- --------------------------
National ....... $20,646 Minnesota ....... $10,158
Colorado ....... 1,261 Missouri ........ 2,671
Georgia ........ 10,671 New York ........ 6,140
Louisiana ...... 1,944 Ohio ............ 4,796
Maryland ....... 10,116 Oregon .......... 7,350
Massachusetts .. 7,173 South Carolina .. 14,374
Michigan ....... 7,641
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, 1997, such charges were as follows:
SERIES SERIES
- ------------------------- --------------------------
National ....... $1,296 Minnesota ....... $371
Georgia ........ 4,076 Missouri ........ 47
Maryland ....... 2,180 New York ........ 5
Massachusetts .. 34 Ohio ............ 237
Michigan ....... 248 South Carolina .. 694
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, 1997,
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 $ 68 $3,103
Colorado 3,438 1,610
Georgia 105 489
Louisiana -- 339
Maryland 255 715
Massachusetts 238 1,017
Michigan 145 1,192
Minnesota 428 1,039
Missouri 227 1,572
New York 695 6,104
Ohio 1,485 1,544
Oregon 7 590
South Carolina 1,754 714
Seligman Data Corp., which is owned by certain associated investment companies,
charged at cost for shareholder account services the following amounts:
SERIES SERIES
- ------------------------- --------------------------
National ....... $69,948 Minnesota ....... $103,446
Colorado ....... 38,460 Missouri ........ 36,983
Georgia ........ 38,235 New York ........ 54,044
Louisiana ...... 34,435 Ohio ............ 107,358
Maryland ....... 46,597 Oregon .......... 41,755
Massachusetts .. 78,581 South Carolina .. 75,785
Michigan ....... 99,479
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 $16,000 were incurred by the Fund for the legal services of Sullivan &
Cromwell, a retired member of which firm is a director of the Fund.
35
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
The Fund has a compensation agreement under which directors who receive fees may
elect to defer receiving such fees. Interest is accrued on the deferred
balances. Deferred fees and the related accrued interest are not deductible for
federal income tax purposes until such amounts are paid. The cost of such fees
and interest is included in directors' fees and expenses, and the accumulated
balances thereof at March 31, 1997, are as follows:
SERIES SERIES
- ------------------------- --------------------------
National ....... $17,327 Minnesota ....... $14,660
Colorado ....... 10,746 Missouri ........ 10,746
Georgia ........ 10,050 New York ........ 14,660
Louisiana ...... 11,707 Ohio ............ 14,660
Maryland ....... 11,707 Oregon .......... 10,559
Massachusetts .. 14,660 South Carolina .. 10,050
Michigan ....... 14,145
5. In accordance with current federal income tax law, each of the Series' net
realized capital gains and losses are considered separately for purposes of
determining taxable capital gains. At September 30, 1996, the net loss
carryforwards for the National and Colorado Series amounted to $3,212,821 and
$37,933, respectively, which are available for offset against future taxable net
gains, expiring in various amounts through 2004. Accordingly, no capital gain
distributions are expected to be paid to shareholders of the National and
Colorado Series until net capital gains have been realized in excess of the
available capital loss carryforwards.
6. The Fund has 1,300,000,000 shares of Capital Stock authorized. At March 31,
1997, 100,000,000 shares were authorized for each Series of the Fund.
Transactions in shares of Capital Stock were as follows:
<TABLE>
<CAPTION>
NATIONAL SERIES COLORADO SERIES GEORGIA SERIES
---------------------- -------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/97 9/30/96 3/31/97 9/30/96 3/31/97 9/30/96
------------ ----------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A .................................... 182,097 787,838 65,182 186,485 107,849 278,594
Class D .................................... 41,316 122,738 3,792 7,709 64,912 125,912
Shares issued in payment of dividends:
CLASS A .................................... 173,432 362,598 95,998 200,194 102,809 221,658
Class D .................................... 7,725 7,360 436 799 4,366 9,793
Exchanged from associated Funds:
Class A .................................... 326,931 3,977,611 186,242 197,002 24,279 36,617
Class D .................................... 2,099,433 1,084,989 -- 258 2,693 1,004
Shares issued in payment of gain distributions:
Class A .................................... -- -- -- -- 17,674 38,308
Class D .................................... -- -- -- -- 792 1,739
---------- ---------- -------- -------- -------- ----------
Total ......................................... 2,830,934 6,343,134 351,650 592,447 325,374 713,625
---------- ---------- -------- -------- -------- ----------
Shares repurchased:
Class A .................................... (648,800) (1,709,147) (412,220) (766,043) (429,436) (1,294,735)
Class D .................................... (65,326) (42,115) (1,025) (139) (58,429) (53,212)
Exchanged into associated Funds:
Class A .................................... (410,543) (4,341,083) (332,884) (142,468) (72,937) (185,879)
Class D .................................... (2,447,590) (706,332) (3,879) -- (14,556) (55,816)
---------- ---------- -------- -------- -------- ----------
Total ......................................... (3,572,259) (6,798,677) (750,008) (908,650) (575,358) (1,589,642)
---------- ---------- -------- -------- -------- ----------
Decrease in shares ............................ (741,325) (455,543) (398,358) (316,203) (249,984) (876,017)
========== ========== ======== ======== ======== ==========
</TABLE>
36
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------
LOUISIANA SERIES MARYLAND SERIES MASSACHUSETTS SERIES
----------------------- ------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/97 9/30/96 3/31/97 9/30/96 3/31/97 9/30/96
----------------------- -------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A .................................... 71,662 289,128 75,646 251,027 156,299 420,626
Class D .................................... 4,284 11,771 31,509 187,262 19,097 84,893
Shares issued in payment of dividends:
Class A .................................... 91,011 201,153 96,638 203,932 209,743 439,779
Class D .................................... 588 1,298 4,677 5,928 2,323 4,303
Exchanged from associated Funds:
Class A .................................... 2,599 559 58,245 138,972 729,185 598,715
Class D .................................... -- -- -- -- 1,134 23,224
Shares issued in payment of gain distributions:
Class A .................................... 63,776 38,670 25,571 21,748 98,428 142,832
Class D .................................... 426 374 1,259 429 1,232 1,238
-------- ---------- -------- -------- ---------- ----------
Total ......................................... 234,346 542,953 293,545 809,298 1,217,441 1,715,610
-------- ---------- -------- -------- ---------- ----------
Shares repurchased:
Class A .................................... (348,680) (1,076,395) (298,448) (777,341) (699,262) (1,532,595)
Class D .................................... (2,359) (22,258) (38,240) (15,227) (6,462) (29,941)
Exchanged into associated Funds:
Class A .................................... (7,203) (56,582) (52,072) (144,008) (1,070,765) (700,147)
Class D .................................... -- (657) (12,507) (1,335) (1,133) (17,262)
-------- ---------- -------- -------- ---------- ----------
Total ......................................... (358,242) (1,155,892) (401,267) (937,911) (1,777,622) (2,279,945)
-------- ---------- -------- -------- ---------- ----------
Decrease in shares ............................ (123,896) (612,939) (107,722) (128,613) (560,181) (564,335)
======== ========== ======== ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
MICHIGAN SERIES MINNESOTA SERIES MISSOURI SERIES
---------------------- ---------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/97 9/30/96 3/31/97 9/30/96 3/31/97 9/30/96
----------- ----------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A .................................... 244,259 590,794 568,663 662,567 612,440 336,439
Class D .................................... 29,248 75,571 15,270 45,645 935 45,866
Shares issued in payment of dividends:
Class A .................................... 273,752 577,449 287,055 622,155 85,738 170,657
Class D .................................... 2,740 5,165 4,006 9,641 1,142 2,059
Exchanged from associated Funds:
Class A .................................... 563,533 261,523 24,114 63,682 18,300 11,737
Class D .................................... 23,696 24,587 -- 6,252 13 5,683
Shares issued in payment of gain distributions:
Class A .................................... 139,825 222,433 -- 34,629 46,125 40,153
Class D .................................... 1,654 2,476 -- 597 688 342
---------- ---------- ---------- ---------- -------- --------
TOTAL ......................................... 1,278,707 1,759,998 899,108 1,445,168 765,381 612,936
Shares repurchased:
Class A .................................... (962,538) (1,562,041) (917,620) (1,744,913) (245,294) (626,785)
Class D .................................... (45,907) (43,655) (44,605) (65,660) (13,338) (40,183)
Exchanged into associated Funds:
Class A .................................... (719,530) (314,340) (221,409) (183,451) (68,399) (102,871)
Class D .................................... (12,064) (25,575) (5,099) (17,466) (4,387) (7,345)
---------- ---------- ---------- ---------- -------- --------
Total ......................................... (1,740,039) (1,945,611) (1,188,733) (2,011,490) (331,418) (777,184)
---------- ---------- ---------- ---------- -------- --------
Increase (decrease) in shares ................. (461,332) (185,613) (289,625) (566,322) 433,963 (164,248)
========== ========== ========== ========== ======== ========
</TABLE>
37
<PAGE>
<TABLE>
<CAPTION>
===============================================================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- -------------------------------------------------------------------------------------------------------------------------------
NEW YORK SERIES OHIO SERIES OREGON SERIES
----------------------- -------------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/97 9/30/96 3/31/97 9/30/96 3/31/97 9/30/96
----------- -------- ------------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A .................................... 317,212 420,183 227,832 556,577 130,784 449,036
Class D .................................... 18,709 51,905 13,955 42,516 13,363 53,330
Shares issued in payment of dividends:
Class A .................................... 148,056 311,826 319,461 676,616 114,485 250,740
Class D .................................... 2,229 3,961 2,267 4,228 2,883 6,750
Exchanged from associated Funds:
Class A .................................... 289,031 396,166 28,216 115,979 4,212 72,458
Class D .................................... 186 22,805 -- 522 12,068 2,730
Shares issued in payment of gain distributions:
Class A .................................... 20,729 -- 131,276 73,144 30,287 6,052
Class D .................................... 316 -- 934 399 813 175
---------- ---------- ---------- ---------- -------- ----------
Total ......................................... 796,468 1,206,846 723,941 1,469,981 308,895 841,271
---------- ---------- ---------- ---------- -------- ----------
Shares repurchased:
Class A .................................... (701,270) (1,161,173) (1,332,811) (1,993,888) (554,036) (932,734)
Class D .................................... (5,820) (31,991) (19,169) (2,985) (46,426) (39,953)
Exchanged into associated Funds:
Class A .................................... (354,496) (273,410) (82,772) (354,919) (57,397) (122,134)
Class D .................................... (2,667) (14,800) (1,914) (1,268) (2,154) (16,869)
---------- ---------- ---------- ---------- -------- ----------
Total ......................................... (1,064,253) (1,481,374) (1,436,666) (2,353,060) (660,013) (1,111,690)
---------- ---------- ---------- ---------- -------- ----------
Decrease in shares ............................ (267,785) (274,528) (712,725) (883,079) (351,118) (270,419)
========== ========== ========== ========== ======== ==========
</TABLE>
SOUTH CAROLINA SERIES
----------------------------
SIX MONTHS YEAR
ENDED ENDED
3/31/97 9/30/96
------------- ----------
Sale of shares:
Class A .................................... 256,156 909,638
Class D .................................... 88,452 179,334
Shares issued in payment of dividends:
Class A .................................... 196,961 412,361
Class D .................................... 6,492 10,618
Exchanged from associated Funds:
Class A .................................... 37,942 104,833
Class D .................................... -- --
Shares issued in payment of gain distributions:
Class A .................................... 161,652 24,100
Class D .................................... 5,056 607
---------- ----------
Total ......................................... 752,711 1,641,491
---------- ----------
Shares repurchased:
Class A .................................... (1,068,864) (1,840,951)
Class D .................................... (18,784) (65,796)
Exchanged into associated Funds:
Class A .................................... (101,806) (308,319)
Class D .................................... (8,432) (2,110)
---------- ----------
Total ......................................... (1,197,886) (2,217,176)
---------- ----------
Decrease in shares ............................ (445,175) (575,685)
========== ==========
38
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The Fund's financial highlights are presented below. "Per share operating
performance" data is designed to allow investors to trace the operating
performance of each Class, on a per share basis, from the beginning net asset
value to the ending net asset value, so that investors may understand what
effect the individual items have on their investment, assuming it was held
throughout the period. Generally, per share amounts are derived by converting
the actual dollar amounts incurred for each item, as disclosed in the financial
statements, to their equivalent per share amounts, based on average shares
outstanding.
"Total return based on net asset value" measures each Class's performance
but assumes that investors purchased shares at net asset value as of the
beginning of the period, invested dividends and capital gains paid at net asset
value, and then sold their shares at the net asset value on the last day of the
period. The total return computations do not reflect any sales charges investors
may incur in purchasing or selling shares of each Series. The total returns for
periods of less than one year are not annualized.
NATIONAL SERIES
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ----------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.70 $7.58 $7.18 $8.72 $8.07 $7.90
------- ------- -------- -------- -------- --------
Net investment income .................. 0.20 0.40 0.40 0.41 0.45 0.48
Net realized and unrealized gain (loss) (0.07) 0.12 0.40 (1.04) 0.78 0.20
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.13 0.52 0.80 (0.63) 1.23 0.68
Dividends paid or declared ............. (0.20) (0.40) (0.40) (0.41) (0.45) (0.48)
Distributions from net gain realized ... -- -- -- (0.50) (0.13) (0.03)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net
asset value .......................... (0.07) 0.12 0.40 (1.54) 0.65 0.17
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $7.63 $7.70 $7.58 $7.18 $8.72 $8.07
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.63% 6.97% 11.48% (7.83)% 16.00% 8.84%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.83%+ 0.80% 0.86% 0.85% 0.86% 0.77%
Net investment income to
average net assets ................... 5.10%+ 5.19% 5.46% 5.30% 5.49% 6.02%
Portfolio turnover ..................... 11.85% 33.99% 24.91% 24.86% 72.68% 63.99%
Net assets, end of period (000s omitted) $94,980 $98,767 $104,184 $111,374 $136,394 $132,130
</TABLE>
<TABLE>
<CAPTION>
CLASS D
-----------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
--------- ---- ---- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.70 $7.57 $7.18 $8.20
------ ------ ------ -----
Net investment income .................. 0.16 0.33 0.32 0.22
Net realized and unrealized gain (loss) (0.07) 0.13 0.39 (1.02)
------ ------ ------ -----
Increase (decrease) from
investment operations ................ 0.09 0.46 0.71 (0.80)
Dividends paid or declared ............. (0.16) (0.33) (0.32) (0.22)
Distributions from net gain realized ... -- -- -- --
------ ------ ------ -----
Net increase (decrease) in net
asset value .......................... (0.07) 0.13 0.39 (1.02)
------ ------ ------ -----
Net asset value, end of period ......... $7.63 $7.70 $7.57 $7.18
====== ====== ====== ====
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.16% 6.13% 10.17% (9.96)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.74%+ 1.67% 1.95% 1.76%
Net investment income to
average net assets ................... 4.17%+ 4.27% 4.40% 4.37%+
Portfolio turnover ..................... 11.85% 33.99% 24.91% 24.86%++
Net assets, end of period (000s omitted) $2,003 $4,826 $1,215 $446
- ------------------------
See footnotes on page 45.
39
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================
FINANCIAL HIGHLIGHTS (continued)
- ----------------------------------------------------------------------------------------------------------
COLORADO SERIES
CLASS A
-------------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ------------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $7.27 $7.30 $7.09 $7.76 $7.34 $7.22
------- ------- -------- -------- -------- --------
Net investment income .................. 0.18 0.37 0.38 0.37 0.39 0.42
Net realized and unrealized gain (loss) (0.03) (0.03) 0.21 (0.59) 0.49 0.12
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.15 0.34 0.59 (0.22) 0.88 0.54
Dividends paid or declared ............. (0.18) (0.37) (0.38) (0.37) (0.39) (0.42)
Distributions from net gain realized ... -- -- -- (0.08) (0.07) --
------- ------- -------- -------- -------- --------
Net increase (decrease) in net
asset value .......................... (0.03) (0.03) 0.21 (0.67) 0.42 0.12
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $7.24 $7.27 $7.30 $7.09 $7.76 $7.34
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 2.11% 4.76% 8.56% (2.92)% 12.54% 7.74%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.89%+ 0.85% 0.93% 0.86% 0.90% 0.81%
Net investment income to
average net assets ................... 5.05%+ 5.07% 5.31% 5.06% 5.21% 5.81%
Portfolio turnover ..................... -- 12.39% 14.70% 10.07% 14.09% 23.22%
Net assets, end of period (000s omitted) $49,180 $52,295 $54,858 $58,197 $67,912 $64,900
</TABLE>
<TABLE>
<CAPTION>
COLORADO SERIES
CLASS D
------------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
---------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.27 $7.29 $7.09 $7.72
------ ------ ------ -----
Net investment income .................. 0.15 0.31 0.30 0.20
Net realized and unrealized gain (loss) (0.04) (0.02) 0.20 (0.63)
----
Increase (decrease) from
investment operations ................ 0.11 0.29 0.50 (0.43)
Dividends paid or declared ............. (0.15) (0.31) (0.30) (0.20)
Distributions from net gain realized ... -- -- -- --
------ ------ ------ -----
Net increase (decrease) in net
asset value .......................... (0.04) (0.02) 0.20 (0.63)
------ ------ ------ -----
Net asset value, end of period ......... $7.23 $7.27 $7.29 $7.09
====== ====== ====== =====
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.51% 3.95% 7.26% (5.73)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.80%+ 1.75% 2.02% 1.78%+
Net investment income to
average net assets ................... 4.14%+ 4.17% 4.23% 4.05%+
Portfolio turnover ..................... -- 12.39% 14.70% 10.07%++
Net assets, end of period (000s omitted) $249 $255 $193 $96
</TABLE>
<TABLE>
<CAPTION>
GEORGIA SERIES
CLASS A
-----------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ----------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.87 $7.81 $7.48 $8.43 $7.85 $7.63
-------- -------- -------- -------- -------- --------
Net investment income .................. 0.19 0.39 0.39 0.41 0.43 0.46
Net realized and unrealized gain (loss) (0.07) 0.11 0.43 (0.86) 0.62 0.25
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.12 0.50 0.82 (0.45) 1.05 0.71
Dividends paid or declared ............. (0.19) (0.39) (0.39) (0.41) (0.43) (0.46)
Distributions from net gain realized ... (0.03) (0.05) (0.10) (0.09) (0.04) (0.03)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net
asset value .......................... (0.10) 0.06 0.33 (0.95) 0.58 0.22
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $7.77 $7.87 $7.81 $7.48 $8.43 $7.85
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.49% 6.56% 11.66% (5.52)% 13.96% 9.64%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.88%+ 0.83% 0.91% 0.73% 0.63% 0.47%
Net investment income to
average net assets ................... 4.85%+ 4.94% 5.26% 5.21% 5.34% 5.95%
Portfolio turnover ..................... 3.71% 16.24% 3.36% 19.34% 12.45% 10.24%
Net assets, end of period (000s omitted) $48,418 $50,995 $57,678 $61,466 $64,650 $44,585
Without management fee waiver:*
Net investment income per share......... $0.39 $0.40 $0.40 $0.43
Ratios:
Expenses to average net assets.......... 0.96% 0.93% 0.93% 0.87%
Net investment income to
average net assets.................... 5.21% 5.01% 5.04% 5.55%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.88 $7.82 $7.49 $8.33
------ ------ ------ -----
Net investment income .................. 0.16 0.32 0.32 0.22
Net realized and unrealized gain (loss) (0.06) 0.11 0.43 (0.84)
------ ------ ------ -----
Increase (decrease) from
investment operations ................ 0.10 0.43 0.75 (0.62)
Dividends paid or declared ............. (0.16) (0.32) (0.32) (0.22)
Distributions from net gain realized ... (0.03) (0.05) (0.10) --
------ ------ ------ -----
Net increase (decrease) in net
asset value .......................... (0.09) 0.06 0.33 (0.84)
------ ------ ------ -----
Net asset value, end of period ......... $7.79 $7.88 $7.82 $7.49
====== ====== ====== ====
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.17% 5.60% 10.58% (7.57)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.79% +1.73% 1.90% 1.76%+
Net investment income to
average net assets ................... 3.94%+ 4.03% 4.28% 4.28%+
Portfolio turnover ..................... 3.71% 16.24% 3.36% 19.34%++
Net assets, end of period (000s omitted) $2,297 $2,327 $2,079 $849
Without management fee waiver:*
Net investment income per share......... $0.31 $0.21
Ratios:
Expenses to average net assets.......... 1.95% 1.90%+
Net investment income to
average net assets.................... 4.23% 4.15%+
- ---------------------
See footnotes on page 45.
40
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================
- ----------------------------------------------------------------------------------------------------------
LOUISIANA SERIES
CLASS A
-----------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ----------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $8.16 $8.14 $7.94 $8.79 $8.38 $8.18
------- ------- -------- -------- -------- --------
Net investment income .................. 0.21 0.42 0.43 0.44 0.46 0.49
Net realized and unrealized gain (loss) (0.03) 0.08 0.34 (0.77) 0.51 0.24
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations .................. 0.18 0.50 0.77 (0.33) 0.97 0.73
Dividends paid or declared ............. (0.21) (0.42) (0.43) (0.44) (0.46) (0.49)
Distributions from net gain realized ... (0.11) (0.06) (0.14) (0.08) (0.10) (0.04)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net
asset value ............................ (0.14) 0.02 0.20 (0.85) 0.41 0.20
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $8.02 $8.16 $8.14 $7.94 $8.79 $8.38
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 2.14% 6.32% 10.30% (3.83)% 12.10% 9.13%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.86%+ 0.82% 0.89% 0.87% 0.87% 0.80%
Net investment income to
average net assets ................... 5.11%+ 5.15% 5.44% 5.31% 5.40% 5.89%
Portfolio turnover ..................... 16.02% 10.08% 4.82% 17.16% 9.21% 25.45%
Net assets, end of period (000s omitted) $55,239 $57,264 $61,988 $61,441 $67,529 $57,931
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $8.16 $8.14 $7.94 $8.73
------ ------ ------ -----
Net investment income .................. 0.17 0.35 0.35 0.24
Net realized and unrealized gain (loss) (0.03) 0.08 0.34 (0.79)
------ ------ ------ -----
Increase (decrease) from
investment operations ................ 0.14 0.43 0.69 (0.55)
Dividends paid or declared ............. (0.17) (0.35) (0.35) (0.24)
Distributions from net gain realized ... (0.11) (0.06) (0.14) --
------ ------ ------ -----
Net increase (decrease) in net
asset value .......................... (0.14) 0.02 0.20 (0.79)
------ ------ ------ -----
Net asset value, end of period ......... $8.02 $8.16 $8.14 $7.94
====== ====== ====== =====
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.69% 5.37% 9.17% (6.45)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.76%+ 1.72% 1.91% 1.78%+
Net investment income to
average net assets ................... 4.20%+ 4.25% 4.41% 4.33%+
Portfolio turnover ..................... 16.02% 10.08% 4.82% 17.16%++
Net assets, end of period (000s omitted) $406 $389 $465 $704
</TABLE>
<TABLE>
<CAPTION>
MARYLAND SERIES
CLASS A
-----------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ----------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.99 $7.96 $7.71 $8.64 $8.15 $7.94
------- ------- -------- -------- -------- --------
Net investment income .................. 0.20 0.40 0.41 0.42 0.44 0.46
Net realized and unrealized gain (loss) (0.09) 0.06 0.38 (0.76) 0.59 0.24
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.11 0.46 0.79 (0.34) 1.03 0.70
Dividends paid or declared ............. (0.20) (0.40) (0.41) (0.42) (0.44) (0.46)
Distributions from net gain realized ... (0.04) (0.03) (0.13) (0.17) (0.10) (0.03)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net
asset value .......................... (0.13) 0.03 0.25 (0.93) 0.49 0.21
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $7.86 $7.99 $7.96 $7.71 $8.64 $8.15
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.36% 6.00% 10.90% (4.08)% 13.23% 9.15
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.89%+ 0.84% 0.96% 0.92% 0.97% 0.86
Net investment income to
average net assets ................... 4.99%+ 5.05% 5.31% 5.17% 5.28% 5.76%
Portfolio turnover ..................... 10.11% 5.56% 3.63% 17.68% 14.10% 29.57%
Net assets, end of period (000s omitted) $52,440 $54,041 $56,290 $57,263 $64,472 $57,208
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.99 $7.97 $7.72 $8.46
------ ------ ------ -----
Net investment income .................. 0.16 0.33 0.33 0.23
Net realized and unrealized gain (loss) (0.08) 0.05 0.38 (0.74)
------ ------ ------ -----
Increase (decrease) from
investment operations ................ 0.08 0.38 0.71 (0.51)
Dividends paid or declared ............. (0.16) (0.33) (0.33) (0.23)
Distributions from net gain realized ... (0.04) (0.03) (0.13) --
------ ------ ------ -----
Net increase (decrease) in net
asset value .......................... (0.12) 0.02 0.25 (0.74)
------ ------ ------ -----
Net asset value, end of period ......... $7.87 $7.99 $7.97 $7.72
====== ====== ====== ====
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.03% 4.91% 9.75% (6.21)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.80%+ 1.72% 2.02% 1.80%+
Net investment income to
average net assets ................... 4.08%+ 4.14% 4.27% 4.26%+
Portfolio turnover ..................... 10.11% 5.56% 3.63% 17.68%++
Net assets, end of period (000s omitted) $1,910 $2,047 $630 $424
</TABLE>
- -------------------
See footnotes on page 45.
41
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================
FINANCIAL HIGHLIGHTS (continued)
- ----------------------------------------------------------------------------------------------------------
MASSACHUSETTS SERIES
CLASS A
-------------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ------------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.85 $7.91 $7.66 $8.54 $8.06 $7.86
------- ------- -------- -------- -------- --------
Net investment income .................. 0.20 0.41 0.42 0.44 0.47 0.49
Net realized and unrealized gain (loss) (0.07) 0.05 0.28 (0.67) 0.55 0.24
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.13 0.46 0.70 (0.23) 1.02 0.73
Dividends paid or declared ............. (0.20) (0.41) (0.42) (0.44) (0.47) (0.49)
Distributions from net gain realized ... (0.08) (0.11) (0.03) (0.21) (0.07) (0.04)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net
asset value .......................... (0.15) (0.06) 0.25 (0.88) 0.48 0.20
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $7.70 $7.85 $7.91 $7.66 $8.54 $8.06
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.60% 5.97% 9.58% (2.94)% 13.18% 9.75%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.83%+ 0.80% 0.86% 0.85% 0.88% 0.77%
Net investment income to
average net assets ................... 5.14%+ 5.24% 5.51% 5.46% 5.65% 6.27%
Portfolio turnover ..................... 14.46% 26.30% 16.68% 12.44% 20.66% 27.92%
Net assets, end of period (000s omitted) $103,410 $109,872 $115,711 $120,149 $139,504 $128,334
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.84 $7.90 $7.66 $8.33
------ ------ ------ -----
Net investment income .................. 0.17 0.34 0.34 0.24
Net realized and unrealized gain (loss) (0.06) 0.05 0.27 (0.67)
------ ------ ------ -----
Increase (decrease) from
investment operations ................ 0.11 0.39 0.61 (0.43)
Dividends paid or declared ............. (0.17) (0.34) (0.34) (0.24)
Distributions from net gain realized ... (0.08) (0.11) (0.03) --
------ ------ ------ -----
Net increase (decrease) in net
asset value .......................... (0.14) (0.06) 0.24 (0.67)
------ ------ ------ -----
Net asset value, end of period ......... $7.70 $7.84 $7.90 $7.66
====== ====== ====== ====
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.28% 5.01% 8.33% (5.34)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.74%+ 1.70% 1.95% 1.78%+
Net investment income to
average net assets ................... 4.23%+ 4.32% 4.47% 4.52%+
Portfolio turnover ..................... 14.46% 26.30% 16.68% 12.44%++
Net assets, end of period (000s omitted) $1,504 $1,405 $809 $1,099
</TABLE>
<TABLE>
<CAPTION>
MICHIGAN SERIES
CLASS A
-----------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ----------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $8.46 $8.54 $8.28 $9.08 $8.68 $8.38
------- ------- -------- -------- -------- --------
Net investment income .................. 0.22 0.45 0.46 0.46 0.47 0.50
Net realized and unrealized gain (loss) (0.08) 0.06 0.30 (0.71) 0.59 0.35
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.14 0.51 0.76 (0.25) 1.06 0.85
Dividends paid or declared ............. (0.22) (0.45) (0.46) (0.46) (0.47) (0.50)
Distributions from net gain realized ... (0.09) (0.14) (0.04) (0.09) (0.19) (0.05)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net
asset value .......................... (0.17) (0.08) 0.26 (0.80) 0.40 0.30
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $8.29 $8.46 $8.54 $8.28 $9.08 $8.68
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.64% 6.16% 9.56% (2.90)% 12.97% 10.55%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.82%+ 0.78% 0.87% 0.84% 0.83% 0.76%
Net investment income to
average net assets ................... 5.22%+ 5.29% 5.50% 5.32% 5.41% 5.93%
Portfolio turnover ..................... 7.55% 19.62% 20.48% 10.06% 6.33% 32.12%
Net assets, end of period (000s omitted) $141,426 $148,178 $151,589 $151,095 $164,638 $144,524
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... 8.45 $8.54 $8.28 $9.01
------ ------ ------ -----
Net investment income .................. 0.18 0.37 0.37 0.25
Net realized and unrealized gain (loss) (0.07) 0.05 0.30 (0.73)
------ ------ ------ -----
Increase (decrease) from
investment operations ................ 0.11 0.42 0.67 (0.48)
Dividends paid or declared ............. (0.18) (0.37) (0.37) (0.25)
Distributions from net gain realized ... (0.09) (0.14) (0.04) --
------ ------ ------ -----
Net increase (decrease) in net
asset value .......................... (0.16) (0.09) 0.26 (0.73)
------ ------ ------ -----
Net asset value, end of period ......... $8.29 $8.45 $8.54 $8.28
====== ====== ====== ====
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.31% 5.09% 8.36% (5.47)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.72%+ 1.68% 2.01% 1.75%+
Net investment income to
average net assets ................... 4.32%+ 4.39% 4.40% 4.40%+
Portfolio turnover ..................... 7.55% 19.62% 20.48% 10.06%++
Net assets, end of period (000s omitted) $1,452 $1,486 $1,172 $671
</TABLE>
- --------------------------
See footnotes on page 45.
42
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================
- ----------------------------------------------------------------------------------------------------------
MINNESOTA SERIES
CLASS A
-------------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ------------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.68 $7.82 $7.72 $8.28 $7.89 $7.81
------- ------- -------- -------- -------- --------
Net investment income .................. 0.20 0.42 0.45 0.45 0.47 0.49
Net realized and unrealized gain (loss) (0.06) (0.12) 0.11 (0.44) 0.51 0.09
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.14 0.30 0.56 0.01 0.98 0.58
Dividends paid or declared ............. (0.20) (0.42) (0.45) (0.45) (0.47) (0.49)
Distributions from net gain realized ... -- (0.02) (0.01) (0.12) (0.12) (0.01)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net
asset value .......................... (0.06) (0.14) 0.10 (0.56) 0.39 0.08
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $7.62 $7.68 $7.82 $7.72 $8.28 $7.89
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.83% 3.99% 7.61% 0.12% 13.06% 7.71%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.85%+ 0.81% 0.87% 0.85% 0.90% 0.80%+
Net investment income to
average net assets ................... 5.22%+ 5.47% 5.89% 5.70% 5.89% 6.29%
Portfolio turnover ..................... 1.21% 26.89% 5.57% 3.30% 5.73% 12.08%
Net assets, end of period (000s omitted) $123,174 $126,173 $132,716 $134,990 $144,600 $151,922
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.68 $7.82 $7.73 $8.22
------ ------ ------ -----
Net investment income .................. 0.17 0.35 0.38 0.25
Net realized and unrealized gain (loss) (0.06) (0.12) 0.10 (0.49)
------ ------ ------ -----
Increase (decrease) from
investment operations .................. 0.11 0.23 0.48 (0.24)
Dividends paid or declared ............. (0.17) (0.35) (0.38) (0.25)
Distributions from net gain realized ... -- (0.02) (0.01) --
------ ------ ------ -----
Net increase (decrease) in net
asset value ............................ (0.06) (0.14) 0.09 (0.49)
------ ------ ------ -----
Net asset value, end of period ......... $7.62 $7.68 $7.82 $7.73
====== ====== ====== ====
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.37% 3.06% 6.45% (3.08)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.75%+ 1.71% 1.85% 1.74%+
Net investment income to
average net assets .................... 4.32%+ 4.57% 4.92% 4.68%+
Portfolio turnover ..................... 1.21% 26.89% 5.57% 3.30%++
Net assets, end of period (000s omitted) $1,787 $2,036 $2,237 $1,649
</TABLE>
<TABLE>
<CAPTION>
MISSOURI SERIES
CLASS A
-----------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ----------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.71 $7.70 $7.41 $8.31 $7.80 $7.72
------- ------- -------- -------- -------- --------
Net investment income .................. 0.19 0.39 0.40 0.40 0.42 0.44
Net realized and unrealized gain (loss) (0.09) 0.08 0.36 (0.79) 0.57 0.15
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.10 0.47 0.76 (0.39) 0.99 0.59
Dividends paid or declared ............. (0.19) (0.39) (0.40) (0.40) (0.42) (0.44)
Distributions from net gain realized ... (0.08) (0.07) (0.07) (0.11) (0.06) (0.07)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net
asset value .......................... (0.17) 0.01 0.29 (0.90) 0.51 0.08
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $7.54 $7.71 $7.70 $7.41 $8.31 $7.80
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.31% 6.27% 10.67% (4.85)% 13.17% 7.87%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.90%+ 0.86% 0.88% 0.74% 0.71% 0.83%
Net investment income to
average net assets ................... 4.93%+ 5.03% 5.31% 5.18% 5.29% 5.71%
Portfolio turnover ..................... 4.04% 8.04% 3.88% 14.33% 17.03% 18.80%
Net assets, end of period (000s omitted) $52,186 $49,941 $51,169 $52,621 $56,861 $49,459
Without management fee waiver:*
Net investment income per share......... $0.39 $0.39 $0.41
Ratios:
Expenses to average net assets.......... 0.93% 0.88% 0.91%
Net investment income
to average net assets................. 5.26% 5.04% 5.09%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.72 $7.70 $7.41 $8.20
------ ------ ------ -----
Net investment income .................. 0.15 0.32 0.32 0.22
Net realized and unrealized gain (loss) (0.10) 0.09 0.36 (0.79)
------ ------ ------ -----
Increase (decrease) from
investment operations ................ 0.05 0.41 0.68 (0.57)
Dividends paid or declared ............. (0.15) (0.32) (0.32) (0.22)
Distributions from net gain realized ... (0.08) (0.07) (0.07) --
------ ------ ------ -----
Net increase (decrease) in net
asset value .......................... (0.18) 0.02 0.29 (0.79)
------ ------ ------ -----
Net asset value, end of period ......... $7.54 $7.72 $7.70 $7.41
====== ====== ====== ====
TOTAL RETURN BASED
ON NET ASSET VALUE: .................. 0.73% 5.46% 9.49% (7.16)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.80%+ 1.76% 1.98% 1.70%+
Net investment income to
average net assets ................... 4.03%+ 4.13% 4.23% 4.27%+
Portfolio turnover ..................... 4.04% 8.04% 3.88% 14.33%++
Net assets, end of period (000s omitted) $440 $565 $515 $350
Without management fee waiver:*
Net investment income per share......... $0.32 $0.22
Ratios:
Expenses to average net assets.......... 2.03% 1.80%+
Net investment income
to average net assets................. 4.18% 4.17%+
</TABLE>
- --------------------
See footnotes on page 45.
43
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================
FINANCIAL HIGHLIGHTS (continued)
- ----------------------------------------------------------------------------------------------------------
NEW YORK SERIES
CLASS A
-------------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ------------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.98 $7.86 $7.67 $8.75 $8.13 $7.94
------- ------- -------- -------- -------- --------
Net investment income .................. 0.20 0.42 0.42 0.43 0.45 0.49
Net realized and unrealized gain (loss) (0.08) 0.12 0.36 (0.88) 0.74 0.26
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.12 0.54 0.78 (0.45) 1.19 0.75
Dividends paid or declared ............. (0.20) (0.42) (0.42) (0.43) (0.45) (0.49)
Distributions from net gain realized ... (0.02) -- (0.17) (0.20) (0.12) (0.07)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net
asset value .......................... (0.10) 0.12 0.19 (1.08) 0.62 0.19
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $7.88 $7.98 $7.86 $7.67 $8.75 $8.13
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.54% 6.97% 10.93% (5.37)% 15.26% 9.80%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.82%+ 0.77% 0.88% 0.87% 0.94% 0.79%
Net investment income to
average net assets ................... 5.11%+ 5.24% 5.52% 5.31% 5.37% 6.09%
Portfolio turnover ..................... 12.48% 25.88% 34.05% 28.19% 27.90% 42.90%
Net assets, end of period (000s omitted) $79,546 $82,719 $83,980 $90,914 $104,685 $92,681
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.98 $7.87 $7.67 $8.55
------ ------ ------ -----
Net investment income .................. 0.17 0.34 0.34 0.23
Net realized and unrealized gain (loss) (0.07) 0.11 0.37 (0.88)
------ ------ ------ -----
Increase (decrease) from
investment operations ................ 0.10 0.45 0.71 (0.65)
Dividends paid or declared ............. (0.17) (0.34) (0.34) (0.23)
Distributions from net gain realized ... (0.02) -- (0.17) --
------ ------ ------ -----
Net increase (decrease) in net
asset value .......................... (0.09) 0.11 0.20 (0.88)
------ ------ ------ -----
Net asset value, end of period ......... $7.89 $7.98 $7.87 $7.67
====== ====== ====== ====
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.21% 5.86% 9.87% (7.73)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.73%+ 1.68% 1.96% 1.81%+
Net investment income to
average net assets ................... 4.19%+ 4.33% 4.42% 4.39%+
Portfolio turnover ..................... 12.48% 25.88% 34.05% 28.19%++
Net assets, end of period (000s omitted) $1,241 $1,152 $885 $476
</TABLE>
<TABLE>
<CAPTION>
OHIO SERIES
CLASS A
-----------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ----------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $8.09 $8.11 $7.90 $8.77 $8.28 $8.06
------- ------- -------- -------- -------- --------
Net investment income .................. 0.21 0.43 0.44 0.44 0.46 0.49
Net realized and unrealized gain (loss) (0.08) 0.02 0.28 (0.70) 0.56 0.26
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.13 0.45 0.72 (0.26) 1.02 0.75
Dividends paid or declared ............. (0.21) (0.43) (0.44) (0.44) (0.46) (0.49)
Distributions from net gain realized ... (0.07) (0.04) (0.07) (0.17) (0.07) (0.04)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net
asset value .......................... (0.15) (0.02) 0.21 (0.87) 0.49 0.22
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $7.94 $8.09 $8.11 $7.90 $8.77 $8.28
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.59% 5.68% 9.59% (3.08)% 12.81% 9.68%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.81%+ 0.77% 0.84% 0.84% 0.85% 0.75%
Net investment income to
average net assets ................... 5.22%+ 5.32% 5.56% 5.34% 5.44% 6.02%
Portfolio turnover ..................... 7.20% 12.90% 2.96% 9.37% 30.68% 7.15%
Net assets, end of period (000s omitted) $153,521 $162,243 $170,191 $171,469 $190,083 $170,427
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $8.13 $8.15 $7.92 $8.61
------ ------ ------ -----
Net investment income .................. 0.17 0.36 0.36 0.24
Net realized and unrealized gain (loss) (0.08) 0.02 0.30 (0.69)
------ ------ ------ -----
Increase (decrease) from
investment operations ................ 0.09 0.38 0.66 (0.45)
Dividends paid or declared ............. (0.17) (0.36) (0.36) (0.24)
Distributions from net gain realized ... (0.07) (0.04) (0.07) --
------ ------ ------ -----
Net increase (decrease) in net
asset value .......................... (0.15) (0.02) 0.23 (0.69)
------ ------ ------ -----
Net asset value, end of period ......... $7.98 $8.13 $8.15 $7.92
====== ====== ====== ====
TOTAL RETURN BASED
ON NET ASSET VALUE: .................. 1.14% 4.74% 8.67% (5.36)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.71%+ 1.67% 1.93% 1.78%+
Net investment income to
average net assets ................... 4.32%+ 4.42% 4.48% 4.41%+
Portfolio turnover ..................... 7.20% 12.90% 2.96% 9.37%++
Net assets, end of period (000s omitted) $960 $1,011 $660 $324
- ---------------------
See footnotes on page 45.
44
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================
- ----------------------------------------------------------------------------------------------------------
OREGON SERIES
CLASS A
-------------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ------------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.65 $7.66 $7.43 $8.08 $7.60 $7.42
------- ------- -------- -------- -------- --------
Net investment income .................. 0.19 0.40 0.40 0.40 0.42 0.42
Net realized and unrealized gain (loss) (0.04) -- 0.25 (0.59) 0.48 0.18
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.15 0.40 0.65 (0.19) 0.90 0.60
Dividends paid or declared ............. (0.19) (0.40) (0.40) (0.40) (0.42) (0.42)
Distributions from net gain realized ... (0.04) (0.01) (0.02) (0.06) -- --
------- ------- -------- -------- -------- --------
Net increase (decrease) in net asset value (0.08) (0.01) 0.23 (0.65) 0.48 0.18
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $7.57 $7.65 $7.66 $7.43 $8.08 $7.60
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.94% 5.27% 9.05% (2.38)% 12.21% 8.35%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.90%+ 0.86% 0.86% 0.78% 0.78% 0.68%
Net investment income to average
net assets ........................... 4.92%+ 5.18% 5.40% 5.20% 5.35% 5.63%
Portfolio turnover ..................... 7.82% 28.65% 2.47% 9.43% 8.08% 0.21%
Net assets, end of period (000s omitted) $54,240 $57,345 $59,549 $59,884 $62,095 $48,797
Without management fee waiver:*
Net investment income per share......... $0.40 $0.39 $0.41 $0.42
Ratios:
Expenses to average net assets.......... 0.91% 0.89% 0.93% 0.83%
Net investment income to
average net assets.................... 5.35% 5.09% 5.20% 5.48%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $7.64 $7.65 $7.43 $8.02
------ ------ ------ -----
Net investment income .................. 0.15 0.33 0.33 0.22
Net realized and unrealized gain (loss) (0.04) -- 0.24 (0.59)
------ ------ ------ -----
Increase (decrease) from
investment operations ................ 0.11 0.33 0.57 (0.37)
Dividends paid or declared ............. (0.15) (0.33) (0.33) (0.22)
Distributions from net gain realized ... (0.04) (0.01) (0.02) --
------ ------ ------ -----
Net increase (decrease) in net asset value (0.08) (0.01) 0.22 (0.59)
------ ------ ------ -----
Net asset value, end of period ......... $7.56 $7.64 $7.65 $7.43
====== ====== ====== ====
TOTAL RETURN BASED
ON NET ASSET VALUE: 1.49% 4.33% 7.86% (4.76)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.80%+ 1.76% 1.83% 1.72%+
Net investment income to average
net assets ........................... 4.02%+ 4.28% 4.41% 4.32%+
Portfolio turnover ..................... 7.82% 28.65% 2.47% 9.43%++
Net assets, end of period (000s omitted) $1,377 $1,540 $1,495 $843
Without management fee waiver:*
Net investment income per share......... $0.33 $0.22
Ratios:
Expenses to average net assets.......... 1.88% 1.82%+
Net investment income to
average net assets.................... 4.36% 4.22%+
</TABLE>
<TABLE>
<CAPTION>
SOUTH CAROLINA SERIES
CLASS A
-----------------------------------------------------------
PER SHARE OPERATING SIX MONTHS YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ENDED ----------------------------------------------
3/31/97 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $8.07 $7.97 $7.61 $8.52 $8.00 $7.71
------- ------- -------- -------- -------- --------
Net investment income .................. 0.20 0.41 0.41 0.41 0.43 0.45
Net realized and unrealized gain (loss) (0.08) 0.12 0.37 (0.79) 0.54 0.31
------- ------- -------- -------- -------- --------
Increase (decrease) from
investment operations ................ 0.12 0.53 0.78 (0.38) 0.97 0.76
Dividends paid or declared ............. (0.20) (0.41) (0.41) (0.41) (0.43) (0.45)
Distributions from net gain realized ... (0.13) (0.02) (0.01) (0.12) (0.02) (0.02)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net asset value (0.21) 0.10 0.36 (0.91) 0.52 0.29
------- ------- -------- -------- -------- --------
Net asset value, end of period ......... $7.86 $8.07 $7.97 $7.61 $8.52 $8.00
======= ======= ======== ======== ======== ========
TOTAL RETURN BASED ON
NET ASSET VALUE: 1.43% 6.82% 10.69% (4.61)% 12.52% 10.08%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 0.82%+ 0.80% 0.88% 0.83% 0.85% 0.81%
Net investment income to average
net assets ............................. 5.08%+ 5.15% 5.38% 5.12% 5.19% 5.71%
Portfolio turnover ..................... -- 20.66% 4.13% 1.81% 17.69% 3.37%
Net assets, end of period (000s omitted) $101,311 $108,163 $112,421 $115,133 $120,589 $82,882
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------
YEAR ENDED
PER SHARE OPERATING SIX MONTHS SEPTEMBER 30, 2/1/94**
PERFORMANCE: ENDED --------------- TO
3/31/97 1996 1995 9/30/94
------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $8.06 $7.97 $7.61 $8.42
------ ------ ------ -----
Net investment income .................. 0.17 0.34 0.34 0.22
Net realized and unrealized gain (loss) (0.07) 0.11 0.37 (0.81)
------ ------ ------ -----
Increase (decrease) from
investment operations ................ 0.10 0.45 0.71 (0.59)
Dividends paid or declared ............. (0.17) (0.34) (0.34) (0.22)
Distributions from net gain realized ... (0.13) (0.02) (0.01) --
------ ------ ------ -----
Net increase (decrease) in net asset value (0.20) 0.09 0.36 (0.81)
------ ------ ------ -----
Net asset value, end of period ......... $7.86 $8.06 $7.97 $7.61
====== ====== ====== ====
TOTAL RETURN BASED ON
NET ASSET VALUE: 1.10% 5.73% 9.63% (7.14)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.72%+ 1.70% 1.85% 1.74%+
Net investment income to average
net assets ........................... 4.17%+ 4.25% 4.40% 4.29%+
Portfolio turnover ..................... -- 20.66% 4.13% 1.81%++
Net assets, end of period (000s omitted) $3,216 $2,714 $1,704 $1,478
</TABLE>
- -----------------
* During the periods stated, the Manager, at its discretion, waived portions of
its fees for the Georgia, Missouri, and Oregon Series.
** Commencement of offering of Class D shares.
+ Annualized.
++ For the year ended September 30, 1994.
See notes to Financial Statements.
45
<PAGE>
================================================================================
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
SELIGMAN MUNICIPAL FUND SERIES, INC.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of the National, Colorado, Georgia, Louisiana,
Maryland, Massachusetts, Michigan, Minnesota, Missouri, New York, Ohio, Oregon,
and South Carolina Series of Seligman Municipal Fund Series, Inc. as of March
31, 1997, 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, 1996, 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, 1997 by correspondence with the Fund's custodian and brokers; where replies
were not received from brokers, we performed other auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each Series of
Seligman Municipal Fund Series, Inc. as of March 31, 1997, the results of their
operations, the changes in their net assets, and the financial highlights for
the respective stated periods, in conformity with generally accepted accounting
principles.
/S/ DELOITTE & TOUCHE LLP
_________________________
DELOITTE & TOUCHE LLP
New York, New York
May 2, 1997
46
<PAGE>
================================================================================
Board of Directors
- --------------------------------------------------------------------------------
FRED E. BROWN
Director Emeritus
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
Director, Kimberly-Clark Corporation
Director, Baptist Medical Center
JOHN E. MEROW
Retired Chairman and Senior 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,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Kerr-McGee Corporation
JAMES C. PITNEY 3
Retired Partner, Pitney, Hardin, Kipp & Szuch, Law Firm
Director, Public Service Enterprise Group
JAMES Q. RIORDAN 3
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
RONALD T. SCHROEDER 1
Managing Director,
J. & W. Seligman & Co. Incorporated
ROBERT L. SHAFER 3
Director or Trustee,
Various Organizations
JAMES N. WHITSON 2
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, C-SPAN
Director, Red Man Pipe and Supply Company
BRIAN T. ZINO 1
President
President, J. & W. Seligman & Co. Incorporated
Chairman and President, Seligman Data Corp.
- ----------------
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
47
