S E L I G M A N
--------------- [LOGO OMITTED]
MUNICIPAL FUND
SERIES, INC.
ANNUAL REPORT
SEPTEMBER 30, 1999
--------
PROVIDING
INCOME EXEMPT
FROM REGULAR
INCOME
TAX
[lOGO OMITTED]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
<PAGE>
SELIGMAN -- TIMES CHANGE...VALUES ENDURE
J. & W. SELIGMAN & CO. INCORPORATED IS A FIRM WITH A LONG TRADITION OF
INVESTMENT EXPERTISE, OFFERING A BROAD ARRAY OF INVESTMENT CHOICES TO HELP
TODAY'S INVESTORS SEEK THEIR LONG-TERM FINANCIAL GOALS.
TIMES CHANGE...
Established in 1864, Seligman has a history of providing
financial services marked not by fanfare, but rather by a quiet
[PICTURE and firm adherence to financial prudence. While the world has
OMITTED] changed dramatically in the 135 years since Seligman first opened
its doors, the firm has continued to offer its clients
high-quality investment solutions through changing times.
In the late 19th century, as the country grew, Seligman helped
finance the westward expansion of the railroads, the construction
of the Panama Canal, and the launching of urban transit systems.
In the first part of the 20th century, as America became an
industrial power, the firm helped fund the growing capital needs
of the nascent automobile and steel industries.
JAMES, JESSE, AND
JOSEPH SELIGMAN, 1870
With the formation of Tri-Continental Corporation in 1929 --
today, the nation's largest diversified publicly-traded
closed-end investment company -- Seligman began shifting its emphasis from
investment banking to investment management. Despite the stock market crash and
ensuing depression, Seligman was convinced of the importance that investment
companies could have in building wealth for individual investors and launched
its first mutual fund in 1930.
In the decades that followed, Seligman has continued to offer forward-looking
investment solutions, including equity funds that specialize in small companies,
technology, or international securities, and bond funds that focus on high-yield
issuers, US government bonds, or municipal securities.
...VALUES ENDURE
Seligman is proud of its distinctive past and of the traditional values that
continue to shape the firm's business decisions and investment judgment. While
much has changed over the years, the firm's commitment to providing prudent
investment management that seeks to build wealth for clients over time is an
enduring value that will guide Seligman into the new millennium.
TABLE OF CONTENTS
To the Shareholders..................................... 1
Interview With Your Portfolio Manager................... 2
Performance Overview and Portfolio Summary............ 4
Portfolios of Investments............................... 18
Statements of Assets and Liabilities.................... 38
Statements of Operations................................ 40
Statements of Changes in Net Assets..................... 42
Notes to Financial Statements........................... 46
Financial Highlights.................................... 56
Report of Independent Auditors.......................... 69
Board of Directors...................................... 70
Executive Officers and For More Information............. 71
Glossary of Financial Terms............................. 72
<PAGE>
TO THE SHAREHOLDERS
The fiscal year ended September 30, 1999, was a period of steadily rising
interest rates, creating a difficult environment for fixed-income securities and
for Seligman Municipal Fund Series.
At the end of the Fund's fiscal-year 1998, the Federal Reserve Board was easing
monetary policy in an effort to protect the US economy from the effects of the
global economic crisis. Central banks around the world also lowered key interest
rates in response to global turmoil. These easing actions were successful and
the world economy has rebounded. However, the global recovery, combined with
continued growth in the US, soon caused the US Fed to voice concerns about
inflation. In May, the Fed announced its bias toward a tighter policy and has
since followed through with two federal funds rate hikes, for a total of 50
additional basis points.
Throughout this fiscal year, continued robust growth in the US, the recovering
world economy, growing concerns regarding inflation, and tighter monetary
policy, sent market interest rates steadily higher. On September 30, 1998, the
30-year US Treasury bond was yielding 4.98%. One year later, the yield had moved
to 6.06%. Municipal bonds (as measured by the Bond Buyer 20-bond General
Obligation Index) fluctuated within a much narrower range, but still rose
significantly, from 4.94% on September 30, 1998, to 5.73% on September 30, 1999.
The additional stability in the municipal market was largely the result of an
imbalance in municipal supply and demand. Rising yields were attracting
investors, while municipal issuers were reluctant to offer new supply at higher
rates.
Looking ahead, we believe that the US economy will slow, as was intended by the
Fed's most recent actions, and that inflation fears will thus subside and reduce
bond market volatility. We anticipate that the municipal market will outperform
the Treasury market for the balance of calendar-year 1999, as a result of
improving municipal market fundamentals, the most significant of which is the
slowdown in municipal issuance, which is expected to continue into the new year.
As the millennium approaches, we have become concerned that the media's focus on
the Year 2000 (Y2K) computer issue, and the fears that this attention may spark,
will cause some investors to take actions that are not in their best long-term
interests. In our view, the primary danger to investors is losing sight of their
long-term financial goals and altering their portfolios and asset allocations in
an attempt to respond to the confusion surrounding this issue.
In the US, governments and businesses have committed substantial resources to
this issue and, while there may be scattered inconveniences, we believe that the
US will enter the year 2000 relatively seamlessly, and that much of the rest of
the developed world is also well positioned to deal with the new millennium.
For the past several years, J. & W. Seligman & Co. Incorporated (Seligman), your
Fund's manager, and Seligman Data Corp. (Seligman Data), your Fund's shareholder
service agent, have been working to ensure that shareholders do not experience
any Y2K-related inconveniences. We are pleased to report that the early start
has paid off. During the spring of this year, Seligman and Seligman Data
participated in Y2K testing conducted by the Securities Industry Association.
These tests were completed without any Y2K-related problems on the part of
Seligman or Seligman Data. Tests with key service providers were also conducted,
all of which were successfully completed in a Y2K environment.
We appreciate your confidence in Seligman Municipal Fund Series and look forward
to serving your investment needs for many years to come. A discussion with your
Portfolio Manager, as well as the Fund's portfolios of investments and financial
statements, follows this letter.
By order of the Board of Directors,
/s/ WILLIAM C. MORRIS
- ---------------------
William C. Morris
Chairman /s/ BRIAN T. ZINO
-----------------
Brian T. Zino
President
November 5, 1999
1
<PAGE>
INTERVIEW WITH YOUR PORTFOLIO MANAGER,
THOMAS G. MOLES
Q: WHAT ECONOMIC AND MARKET FACTORS INFLUENCED SELIGMAN MUNICIPAL FUND SERIES
IN THE LAST 12 MONTHS?
A: The past 12 months have been challenging for the financial markets,
including the fixed-income markets. At this time last year, global equity
markets were struggling to recover from the Asian financial crisis, as well
as economic turmoil in Russia. In September 1998, the Federal Reserve Board
initiated a series of federal funds rate easings in an effort to restore
stability and liquidity to anxious world markets. At that time, market
participants generally expected that US economic growth would contract as a
result of world events, thereby preventing an acceleration in the rate of
inflation. Additionally, many experts predicted that, with the approach of
the new millennium, computer glitches would at best slow economic growth and
at worst cause major disruptions leading to worldwide recession. One year
later, the Fed has tightened to slow economic growth, world equity markets
have recovered, and most market watchers expect the transition to the year
2000 to be uneventful.
During the past year, the municipal market did not exhibit the degree of
volatility that characterized the US Treasury market. This was largely the
result of the powerful influences of supply and demand that served to
mitigate both upward and downward movements in municipal yields. Last year's
Treasury market rallies were caused by heavy demand for Treasury securities
during periods of equity market declines. Conversely, demand for municipal
bonds was not greatly affected, which lessened municipal market volatility.
Further, year-to-date municipal issuance is down 20% over the same period
last year. This lack of supply held municipal yields steady and was the
primary reason municipal bonds outperformed Treasury bonds for much of the
past 12 months.
While the municipal market was relatively stable overall, it was not immune
to the effects of shifting economic and inflation expectations. By June
1999, municipal yields began moving higher in response to increasing concern
regarding the pace of economic activity and continued to move higher through
fiscal year end. Accordingly, net asset values of the Fund's shares
deteriorated during the last quarter of the fiscal year and performance was
disappointing.
Q: WHAT WAS YOUR INVESTMENT STRATEGY?
A: Over the past year, long-term municipal yields rose to levels not seen in
several years. This presented an opportunity to enhance Fund yields by
purchasing
[PICTURE OMITTED]
SELIGMAN MUNICIPALS TEAM: (STANDING FROM LEFT) AUDREY KUCHTYAK, THERESA BARION,
DEBRA MCGUINNESS, (SEATED) EILEEN COMERFORD, THOMAS G. MOLES (PORTFOLIO MANAGER)
A TEAM APPROACH
Seligman Municipal Fund Series is managed by the Seligman Municipals Team,
headed by Thomas G. Moles. Mr. Moles is assisted in the management of the Fund
by a group of seasoned professionals who are responsible for research and
trading consistent with the Fund's investment objective.
2
<PAGE>
INTERVIEW WITH YOUR PORTFOLIO MANAGER,
THOMAS G. MOLES
higher-yielding, longer-term bonds and by reducing positions in
shorter-term bonds. In general, the longer the maturity of a bond, the more
sensitive it is to changes in interest rates. During periods of declining
interest rates, longer-term bonds outperform shorter-term bonds. However,
during periods of rising interest rates, such as we have been experiencing,
longer-term bonds decline more in price than shorter-term bonds.
New purchases were concentrated in higher-rated bonds due primarily to a
continuation of narrow yield spreads between higher- and lower-quality
bonds. Additionally, a number of holdings received credit- rating upgrades,
further contributing to the overall improvement in the Fund's credit
quality.
The Fund is well diversified among all major sectors of the municipal
marketplace. Most sectors remain stable with the exception of health care,
which remains vulnerable to further credit-quality deterioration mainly as
a result of government cutbacks and the growth of managed care. Many health
care issuers that have been well managed and have maintained consistently
healthy finances are suddenly facing serious budget deficits. As a result of
this alarming trend, we have been particularly diligent in monitoring our
health care holdings. During the past year, portfolio activity in the sector
has been heavier than usual as we restructured our positions. Despite the
current situation, the health care sector continues to offer selective
opportunities. Through in-depth credit analysis, we endeavor to identify
strong health care credits for inclusion in the Fund's portfolio.
Q: WHAT IS YOUR OUTLOOK?
A: The long-awaited economic slowdown has yet to materialize, increasing the
risk that the rate of inflation will accelerate. In response, bond yields
have been rising steadily year to date. For the remainder of calendar year
1999, the bond markets will likely experience continued volatility until
solid signs that the economy is moderating emerge. Many market participants
expect the Fed to raise rates once more before year-end. This, together with
higher market rates, may ease inflationary pressures and spark a bond-market
rally.
As we head toward the new millennium, we believe that there is much to be
optimistic about. In the year 2000, the US economy will likely enter its
tenth year of expansion, an extraordinary achievement. The financial well
being of the nation's states, cities, and municipalities continues to
improve, with many reporting record budget surpluses. The jobless rate
remains below 5% nationally and consumer confidence remains high. Finally,
as one of the few remaining possible ways to shelter income, municipal bond
funds currently offer attractive yields compared to the after-tax yields of
many taxable bond investments.
3
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
The following charts compare a $10,000 hypothetical investment made in each
Series of Seligman Municipal Fund Series Class A shares, with and without the
initial 4.75% maximum sales charge, and assume that all distributions within the
period are invested in additional shares for the 10-year period ended September
30, 1999, to a $10,000 hypothetical investment made in the Lehman Brothers
Municipal Bond Index (Lehman Index) for the same period. The performances of
each Series of Seligman Municipal Fund Series Class C and Class D shares are not
shown in the charts but are included in the table below each chart. It is
important to keep in mind that the Lehman Index does not include any fees or
sales charges, and does not reflect state-specific bond market performance. The
table below each chart also includes relevant portfolio characteristics for each
Series. Seligman National Municipal Series
SELIGMAN NATIONAL MUNICIPAL SERIES
[FIGURES BELOW REPRESENTS LINE CHART IN ITS PRINTED FORM]
"With Load" "Without Load" "Lehman"
09/30/89 9520 10000 10000
9896 10395 10384
9830 10326 10431
10088 10597 10675
09/30/90 9910 10410 10681
10472 11000 11142
10653 11190 11393
10879 11427 11636
09/30/91 11321 11892 12089
11673 12262 12495
11645 12232 12532
12109 12720 13009
09/30/92 12322 12944 13353
12593 13229 13596
13231 13899 14101
13750 14443 14562
09/30/93 14294 15015 15054
14369 15094 15265
13190 13856 14427
13270 13940 14587
09/30/94 13175 13840 14686
12939 13592 14475
14007 14713 15498
14365 15090 15871
09/30/95 14688 15429 16329
15540 16324 17001
15203 15970 16796
15306 16078 16925
09/30/96 15711 16504 17314
16058 16868 17756
15968 16773 17715
16575 17412 18326
09/30/97 17188 18056 18879
17724 18619 19391
17935 18840 19614
18199 19118 19912
09/30/98 18735 19680 20524
18728 19673 20647
18831 19781 20830
18525 19460 20462
09/30/99 18152 19068 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- -------------------------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* MONTHS* YEAR YEARS YEARS
2/1/94
----------------- ---------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (8.21)% (7.66)% 5.58% 6.14%
n/a
Without Sales Charge n/a (3.60) (3.11) 6.62 6.67
n/a
CLASS C**
With Sales Charge and CDSC (5.27)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (3.38) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (4.87) (4.78) n/a n/a
n/a
Without CDSC n/a (3.92) (3.85) 5.63 n/a
3.03%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+ SEC
YIELD++
--------- --------- --------- ---------- -------------
- -----------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $7.68 $8.17 $8.32 CLASS A $0.390 --
4.69%
CLASS C 7.68 N/A N/A CLASS C 0.111 --
3.98
CLASS D 7.68 8.16 8.31 CLASS D 0.318 --
4.02
HOLDINGS BY MARKET SECTORO MOODY'S/S&P RATINGS0
Revenue Bonds 79% Aaa/AAA 38%
General Obligation Bonds00 21 Aa/AA 31
A/A 20
Baa/BBB 11
WEIGHTED AVERAGE MATURITY 25.0 years
</TABLE>
- -------------------
See footnotes on page 16.
4
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN COLORADO MUNICIPAL SERIES
[FIGURES BELOW REPRESENTS LINE CHART IN ITS PRINTED FORM]
"With Load" "Without Load" "Lehman"
09/30/89 9528 10000 10000
9844 10332 10384
9785 10270 10431
10013 10510 10675
09/30/90 9945 10438 10681
10341 10853 11142
10513 11034 11393
10705 11235 11636
09/30/91 11054 11602 12089
11312 11873 12495
11288 11847 12532
11661 12240 13009
09/30/92 11910 12500 13353
12180 12784 13596
12584 13208 14101
12988 13632 14562
09/30/93 13403 14067 15054
13534 14205 15265
12874 13512 14427
12989 13633 14587
09/30/94 13011 13656 14686
12840 13476 14475
13654 14331 15498
13889 14578 15871
09/30/95 14125 14825 16329
14633 15358 17001
14459 15176 16796
14608 15332 16925
09/30/96 14796 15530 17314
15128 15878 17756
15108 15857 17715
15511 16280 18326
09/30/97 15876 16663 18879
16266 17073 19391
16440 17255 19614
16681 17508 19912
09/30/98 17150 18000 20524
17209 18062 20647
17262 18118 20830
17045 17890 20462
09/30/99 16692 17519 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- ---------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* *MONTHS* YEAR YEARS YEARS
2/1/94
--------------- -------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (7.96)% (7.28)% 4.10% 5.26%
n/a
Without Sales Charge n/a (3.30) (2.67) 5.11 5.77
n/a
CLASS C**
With Sales Charge and CDSC (5.89)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (3.93) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (4.83) (4.50) n/a n/a
n/a
Without CDSC n/a (3.88) (3.57) 4.10 n/a
2.54%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
<C>
CLASS A $7.10 $7.52 $7.64 CLASS A $0.343 --
4.48%
CLASS C 7.09 N/A N/A CLASS C 0.096 --
3.76
CLASS D 7.09 7.52 7.63 CLASS D 0.275 --
3.80
<CAPTION>
HOLDINGS BY MARKET SECTOR0 MOODY'S/S&P RATINGS0
<S> <C> <C> <C>
Revenue Bonds 81% Aaa/AAA 55%
General Obligation Bonds00 19 Aa/AA 16
A/A 17
WEIGHTED AVERAGE MATURITY 20.65 years Baa/BBB 12
</TABLE>
- -------------------
See footnotes on page 16.
5
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN GEORGIA MUNICIPAL SERIES
[FIGURES BELOW REPRESENTS LINE CHART IN ITS PRINTED FORM]
"With Load" "Without Load" "Lehman"
09/30/89 9530 10000 10000
9835 10320 10384
9835 10320 10431
10053 10549 10675
09/30/90 10024 10519 10681
10524 11043 11142
10717 11245 11393
10932 11471 11636
09/30/91 11357 11918 12089
11679 12255 12495
11671 12247 12532
12146 12746 13009
09/30/92 12453 13067 13353
12730 13358 13596
13099 13745 14101
13542 14210 14562
09/30/93 14191 14891 15054
14284 14988 15265
13309 13966 14427
13391 14051 14587
09/30/94 13408 14069 14686
13193 13843 14475
14209 14910 15498
14637 15358 15871
09/30/95 14971 15710 16329
15720 16496 17001
15397 16156 16796
15534 16300 16925
09/30/96 15954 16741 17314
16328 17133 17756
16191 16990 17715
16815 17644 18326
09/30/97 17334 18188 18879
17800 18678 19391
18001 18889 19614
18298 19201 19912
09/30/98 18796 19723 20524
18857 19787 20647
18973 19908 20830
18612 19530 20462
09/30/99 18302 19204 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- -------------------------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* *MONTHS* YEAR YEARS YEARS
2/1/94
----------------- ---------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (8.11)% (7.28)% 5.40% 6.23%
n/a
Without Sales Charge n/a (3.54) (2.63) 6.42 6.74
n/a
CLASS C**
With Sales Charge and CDSC (5.72)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (3.84) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (5.03) (4.53) n/a n/a
n/a
Without CDSC n/a (4.09) (3.61) 5.45 n/a
3.35%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ capital gain+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $7.75 $8.23 $8.38 CLASS A $0.374 $0.045
4.53%
CLASS C 7.76 n/a n/a CLASS C 0.107 --
3.82
CLASS D 7.76 8.25 8.40 CLASS D 0.301 0.045
3.86
HOLDINGS BY MARKET SECTOR0 MOODY'S/S&P RATINGS0
Revenue Bonds 69% Aaa/AAA 50%
General Obligation Bonds00 31 Aa/AA 17
A/A 27
WEIGHTED AVERAGE MATURITY 20.68 years Baa/BBB 6
</TABLE>
- ----------------
See footnotes on page 16.
6
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN LOUISIANA MUNICIPAL SERIES
[FIGURES BELOW REPRESENTS LINE CHART IN ITS PRINTED FORM]
"With Load" "Without Load" "Lehman"
09/30/89 9528 10000 10000
9836 10323 10384
9838 10325 10431
10079 10578 10675
09/30/90 10024 10520 10681
10511 11032 11142
10732 11263 11393
10956 11498 11636
09/30/91 11377 11940 12089
11708 12287 12495
11694 12273 12532
12175 12778 13009
09/30/92 12415 13030 13353
12625 13250 13596
13106 13754 14101
13502 14170 14562
09/30/93 13917 14606 15054
14070 14767 15265
13313 13972 14427
13370 14031 14587
09/30/94 13384 14046 14686
13242 13898 14475
14113 14811 15498
14390 15102 15871
09/30/95 14761 15492 16329
15507 16274 17001
15255 16010 16796
15304 16062 16925
09/30/96 15695 16471 17314
16047 16842 17756
16030 16824 17715
16563 17383 18326
09/30/97 16977 17817 18879
17404 18265 19391
17593 18463 19614
17809 18691 19912
09/30/98 18348 19256 20524
18436 19349 20647
18515 19432 20830
18196 19096 20462
09/30/99 17901 18787 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- --------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* *MONTHS* YEAR YEARS YEARS
2/1/94
----------------- ---------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (7.88)% (7.03)% 4.95% 6.00%
n/a
Without Sales Charge n/a (3.32) (2.44) 5.99 6.51
n/a
CLASS C**
With Sales Charge and CDSC (5.43)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (3.55) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (4.83) (4.25) n/a n/a
n/a
Without CDSC n/a (3.89) (3.33) 4.98 n/a
3.17%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $7.81 $8.28 $8.51 CLASS A $0.391 $0.112
4.61%
CLASS C 7.80 n/a n/a CLASS C 0.110 .--
3.90
CLASS D 7.80 8.28 8.50 CLASS D 0.316 0.112
3.94
HOLDINGS BY MARKET SECTOR0 MOODY'S/S&P RATINGS0
Revenue Bonds 84% Aaa/AAA 77%
General Obligation Bonds00 16 Aa/AA 14
Baa/BBB 9
WEIGHTED AVERAGE MATURITY 20.48 years
</TABLE>
- -------------------
See footnotes on page 16.
7
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN MARYLAND MUNICIPAL SERIES
[FIGURES BELOW REPRESENTS LINE CHART IN ITS PRINTED FORM]
"With Load" "Without Load" "Lehman"
09/30/89 9523 10000 10000
9850 10343 10384
9825 10317 10431
10031 10534 10675
09/30/90 9949 10447 10681
10456 10979 11142
10628 11160 11393
10821 11363 11636
09/30/91 11268 11832 12089
11550 12129 12495
11589 12169 12532
12007 12608 13009
09/30/92 12299 12915 13353
12502 13128 13596
12965 13614 14101
13412 14084 14562
09/30/93 13926 14623 15054
13994 14694 15265
13253 13917 14427
13335 14003 14587
09/30/94 13358 14026 14686
13227 13890 14475
14148 14856 15498
14461 15185 15871
09/30/95 14813 15555 16329
15455 16228 17001
15188 15948 16796
15366 16135 16925
09/30/96 15702 16488 17314
16021 16823 17756
15916 16712 17715
16427 17249 18326
09/30/97 16901 17747 18879
17316 18183 19391
17526 18404 19614
17763 18652 19912
09/30/98 18235 19148 20524
18329 19247 20647
18473 19398 20830
18221 19133 20462
09/30/99 17971 18870 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
Investment Results Per Share
Total Returns
For Periods Ended September 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- -------------------------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* MONTHS* YEAR YEARS YEARS
2/1/94
----------------- ---------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (7.35)% (6.08)% 5.10% 6.04%
n/a
Without Sales Charge n/a (2.72) (1.45) 6.11 6.56
n/a
CLASS C**
With Sales Charge and CDSC (4.72)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (2.83) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (3.78) (2.93) n/a n/a
n/a
Without CDSC n/a (2.83) (2.00) 5.20 n/a
3.40%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $7.79 $8.21 $8.32 CLASS A $0.388 $0.028
4.52%
CLASS C 7.80 n/a n/a CLASS C 0.111 .--
3.81
CLASS D 7.80 8.22 8.33 CLASS D 0.314 0.028
3.85
HOLDINGS BY MARKET SECTORO MOODY'S/S&P RATINGS0
Revenue Bonds 74% Aaa/AAA 43%
General Obligation Bonds00 26 Aa/AA 38
A/A 17
WEIGHTED AVERAGE MATURITY 21.32 years Baa/BBB 2
</TABLE>
- -------------------
See footnotes on page 16.
8
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN MASSACHUSETTS MUNICIPAL SERIES
[FIGURES BELOW REPRESENTS LINE CHART IN ITS PRINTED FORM]
"With Load" "Without Load" "Lehman"
09/30/89 9527 10000 10000
9762 10247 10384
9759 10244 10431
9962 10457 10675
09/30/90 9763 10248 10681
10291 10802 11142
10598 11125 11393
10845 11384 11636
09/30/91 11309 11871 12089
11626 12203 12495
11691 12272 12532
12133 12736 13009
09/30/92 12412 13029 13353
12681 13311 13596
13138 13790 14101
13612 14288 14562
09/30/93 14048 14746 15054
14142 14845 15265
13479 14149 14427
13590 14265 14587
09/30/94 13635 14312 14686
13516 14187 14475
14349 15062 15498
14617 15343 15871
09/30/95 14941 15684 16329
15570 16343 17001
15300 16060 16796
15464 16233 16925
09/30/96 15833 16619 17314
16214 17019 17756
16086 16885 17715
16632 17458 18326
09/30/97 17117 17967 18879
17621 18496 19391
17856 18743 19614
18132 19033 19912
09/30/98 18794 19728 20524
18774 19707 20647
18889 19828 20830
18398 19312 20462
09/30/99 17882 18771 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- -------------------------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* MONTHS* YEAR YEARS YEARS
2/1/94
----------------- ---------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (9.79)% (9.35)% 4.56% 5.98%
n/a
Without Sales Charge n/a (5.33) (4.85) 5.57 6.50
n/a
CLASS C**
With Sales Charge and CDSC (6.90)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (5.02) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (6.70) (6.51) n/a n/a
n/a
Without CDSC n/a (5.78) (5.61) 4.60 n/a
3.04%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $7.47 $8.08 $8.27 CLASS A $0.364 $0.050
4.60%
CLASS C 7.47 N/A N/A CLASS C 0.101 --
3.87
CLASS D 7.47 8.08 8.26 CLASS D 0.291 0.050
3.91
HOLDINGS BY MARKET SECTOR0 MOODY'S/S&P RATINGS0
Revenue Bonds 88% Aaa/AAA 51%
General Obligation Bonds00 12 Aa/AA 32
A/A 10
Baa/BBB 4
Non-Rated 3
WEIGHTED AVERAGE MATURITY 23.73 years
</TABLE>
- ----------------
See footnotes on page 16.
9
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN MICHIGAN MUNICIPAL SERIES
[FIGURES BELOW REPRESENTS LINE CHART IN ITS PRINTED FORM]
"With Load" "Without Load" "Lehman"
09/30/89 9520 10000 10000
9833 10328 10384
9826 10321 10431
10059 10565 10675
09/30/90 9955 10457 10681
10408 10932 11142
10624 11159 11393
10858 11404 11636
09/30/91 11283 11851 12089
11658 12245 12495
11680 12268 12532
12152 12765 13009
09/30/92 12473 13101 13353
12744 13386 13596
13176 13839 14101
13659 14347 14562
09/30/93 14091 14801 15054
14207 14922 15265
13549 14232 14427
13627 14313 14587
09/30/94 13683 14372 14686
13520 14201 14475
14409 15134 15498
14657 15395 15871
09/30/95 14990 15745 16329
15653 16442 17001
15400 16176 16796
15516 16297 16925
09/30/96 15914 16715 17314
16238 17056 17756
16175 16990 17715
16741 17584 18326
09/30/97 17211 18078 18879
17656 18545 19391
17864 18764 19614
18142 19056 19912
09/30/98 18696 19637 20524
18737 19680 20647
18865 19815 20830
18510 19442 20462
09/30/99 18179 19094 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- ---------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* MONTHS* YEAR YEARS YEARS
2/1/94
----------------- --------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (8.25)% (7.38)% 4.83% 6.16%
n/a
Without Sales Charge n/a (3.64) (2.77) 5.85 6.68
n/a
CLASS C**
With Sales Charge and CDSC (5.51)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (3.55) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (5.02) (4.56) n/a n/a
n/a
Without CDSC n/a (4.08) (3.65) 4.83 n/a
3.23%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $8.04 $8.55 $8.83 CLASS A $0.400 $0.158
4.49%
CLASS C 8.03 n/a n/a CLASS C 0.112 .--
3.77
CLASS D 8.03 8.54 8.82 CLASS D 0.324 0.158
3.81
HOLDINGS BY MARKET SECTOR0 MOODY'S/S&P RATINGS0
Revenue Bonds 73% Aaa/AAA 59%
General Obligation Bonds00 27 Aa/AA 32
A/A 9
WEIGHTED AVERAGE MATURITY 20.77 years
</TABLE>
- -------------------
See footnotes on page 16.
10
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN MINNESOTA MUNICIPAL SERIES
"With Load" "Without Load" "Lehman"
09/30/89 9524 10000 10000
9899 10394 10384
9902 10397 10431
10127 10633 10675
09/30/90 10075 10579 10681
10545 11072 11142
10681 11215 11393
10879 11423 11636
09/30/91 11193 11753 12089
11338 11905 12495
11459 12032 12532
11808 12398 13009
09/30/92 12056 12659 13353
12208 12819 13596
12710 13346 14101
13190 13850 14562
09/30/93 13631 14312 15054
13855 14548 15265
13407 14078 14427
13503 14178 14587
09/30/94 13647 14329 14686
13503 14179 14475
14178 14887 15498
14442 15164 15871
09/30/95 14685 15419 16329
15044 15796 17001
14864 15608 16796
14987 15737 16925
09/30/96 15271 16034 17314
15553 16331 17756
15549 16327 17715
15921 16717 18326
09/30/97 16316 17132 18879
16645 17477 19391
16803 17644 19614
17035 17887 19912
09/30/98 17568 18447 20524
17680 18564 20647
17791 18681 20830
17496 18370 20462
09/30/99 17202 18062 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- ---------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* *MONTHS* YEAR YEARS YEARS
2/1/94
----------------- --------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (7.92)% (6.76)% 3.74% 5.57%
n/a
Without Sales Charge n/a (3.31) (2.09) 4.74 6.09
n/a
CLASS C**
With Sales Charge and CDSC (5.40)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (3.47) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (4.69) (3.89) n/a n/a
n/a
Without CDSC n/a (3.75) (2.96) 3.76 n/a
2.75%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $7.36 $7.80 $7.98 CLASS A $0.364 $0.098
4.62%
Class C 7.36 n/a n/a CLASS C 0.102 .--
3.91
Class D 7.36 7.80 7.98 CLASS D 0.295 0.098
3.95
HOLDINGS BY MARKET SECTOR0 MOODY'S/S&P RATINGS0
Revenue Bonds 53% Aaa/AAA 43%
General Obligation Bonds00 47 Aa/AA 36
A/A 14
WEIGHTED AVERAGE MATURITY 19.85 years Baa/BBB 5
Non-Rated 2
</TABLE>
- ----------------
See footnotes on page 16.
11
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN MISSOURI MUNICIPAL SERIES
Missouri Series
"With Load" "Without Load" "Lehman"
09/30/89 9529 10000 10000
9848 10335 10384
9842 10329 10431
10102 10602 10675
09/30/90 10049 10546 10681
10531 11051 11142
10735 11265 11393
10985 11529 11636
09/30/91 11417 11982 12089
11727 12307 12495
11730 12310 12532
12167 12769 13009
09/30/92 12316 12925 13353
12578 13200 13596
13006 13649 14101
13458 14124 14562
09/30/93 13939 14628 15054
14012 14705 15265
13156 13807 14427
13231 13886 14587
09/30/94 13263 13919 14686
13127 13776 14475
14086 14783 15498
14344 15053 15871
09/30/95 14678 15404 16329
15352 16111 17001
15050 15794 16796
15224 15977 16925
09/30/96 15598 16369 17314
15922 16709 17756
15802 16583 17715
16319 17126 18326
09/30/97 16799 17630 18879
17208 18059 19391
17360 18218 19614
17674 18548 19912
09/30/98 18212 19113 20524
18201 19101 20647
18282 19186 20830
17944 18831 20462
09/30/99 17560 18428 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- ---------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* *MONTHS* YEAR YEARS YEARS 2/1/94
----------------- --------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (8.54)% (8.16)% 4.75% 5.79%
n/a
Without Sales Charge n/a (3.95) (3.58) 5.77 6.30
n/a
CLASS C**
With Sales Charge and CDSC (5.88)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (3.95) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (5.33) (5.37) n/a n/a
n/a
Without CDSC n/a (4.39) (4.46) 4.79 n/a
2.86%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $7.29 $7.77 $8.03 CLASS A $0.347 $0.118
4.48%
Class C 7.29 n/a n/a CLASS C 0.097 .--
3.75
Class D 7.29 7.77 8.03 CLASS D 0.277 0.118
3.79
HOLDINGS BY MARKET SECTOR0 MOODY'S/S&P RATINGS0
Revenue Bonds 80% Aaa/AAA 43%
General Obligation Bonds00 20 Aa/AA 35
A/A 20
WEIGHTED AVERAGE MATURITY 21.03 years Baa/BBB 2
</TABLE>
- -------------------
See footnotes on page 16.
12
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN NEW YORK MUNICIPAL SERIES
[FIGURES BELOW REPRESENTS LINE CHART IN ITS PRINTED FORM]
"With Load" "Without Load" "Lehman"
09/30/89 9530 10000 10000
9808 10292 10384
9704 10182 10431
9984 10476 10675
09/30/90 9834 10319 10681
10218 10721 11142
10455 10970 11393
10726 11254 11636
09/30/91 11266 11821 12089
11600 12171 12495
11616 12189 12532
12154 12753 13009
09/30/92 12370 12980 13353
12679 13304 13596
13267 13920 14101
13766 14445 14562
09/30/93 14257 14960 15054
14361 15069 15265
13411 14072 14427
13502 14167 14587
09/30/94 13492 14157 14686
13222 13874 14475
14297 15001 15498
14603 15322 15871
09/30/95 14967 15704 16329
15775 16552 17001
15469 16231 16796
15599 16368 16925
09/30/96 16010 16799 17314
16379 17187 17756
16256 17057 17715
16846 17676 18326
09/30/97 17523 18387 18879
18024 18913 19391
18260 19160 19614
18569 19484 19912
09/30/98 19278 20228 20524
19260 20210 20647
19358 20312 20830
18896 19827 20462
09/30/99 18533 19447 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
Investment Results Per Share
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- ---------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* MONTHS* YEAR YEARS YEARS
2/1/94
----------------- -------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (8.80)% (8.44)% 5.53% 6.36%
n/a
Without Sales Charge n/a (4.26) (3.86) 6.56 6.88
n/a
CLASS C**
With Sales Charge and CDSC (6.09)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (4.22) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (5.75) (5.62) n/a n/a
n/a
Without CDSC n/a (4.81) (4.73) 5.55 n/a
3.41%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $7.70 $8.24 $8.60 CLASS A $0.378 $0.207
4.68%
CLASS C 7.70 n/a n/a CLASS C 0.108 --
3.97
CLASS D 7.70 8.25 8.60 CLASS D 0.304 0.207
4.01
HOLDINGS BY MARKET SECTOR0 MOODY'S/S&P RATINGS0
Revenue Bonds 84% Aaa/AAA 56%
General Obligation Bonds00 16 Aa/AA 9
A/A 25
WEIGHTED AVERAGE MATURITY 23.35 years Baa/BBB 10
</TABLE>
- -----------------
See footnotes on page 16.
13
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN OHIO MUNICIPAL SERIES
[FIGURES BELOW REPRESENTS LINE CHART IN ITS PRINTED FORM]
"With Load" "Without Load" "Lehman"
09/30/89 9524 10000 10000
9868 10361 10384
9895 10389 10431
10098 10603 10675
09/30/90 10067 10570 10681
10518 11043 11142
10714 11250 11393
10943 11490 11636
09/30/91 11371 11940 12089
11708 12293 12495
11740 12327 12532
12201 12811 13009
09/30/92 12471 13095 13353
12695 13330 13596
13149 13806 14101
13614 14295 14562
09/30/93 14069 14773 15054
14172 14881 15265
13479 14153 14427
13620 14301 14587
09/30/94 13636 14318 14686
13477 14151 14475
14349 15066 15498
14635 15367 15871
09/30/95 14943 15691 16329
15530 16306 17001
15279 16043 16796
15448 16220 16925
09/30/96 15791 16581 17314
16116 16921 17756
16042 16844 17715
16520 17347 18326
09/30/97 16982 17831 18879
17468 18341 19391
17616 18496 19614
17879 18773 19912
09/30/98 18473 19396 20524
18496 19420 20647
18621 19552 20830
18308 19224 20462
09/30/99 17977 18876 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- ----------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* MONTHS* YEAR YEARS YEARS 2/1/94
----------------- ------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (7.99)% (7.33)% 4.67% 6.04%
n/a
Without Sales Charge n/a (3.46) (2.68) 5.68 6.56
n/a
CLASS C**
With Sales Charge and CDSC (5.40)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (3.51) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (4.82) (4.44) n/a n/a
n/a
Without CDSC n/a (3.87) (3.52) 4.75 n/a
3.18%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $7.64 $8.11 $8.37 CLASS A $0.384 $0.132
4.49%
CLASS C 7.68 n/a n/a CLASS C 0.108 --
3.76
CLASS D 7.68 8.15 8.41 CLASS D 0.313 0.132
3.80
HOLDINGS BY MARKET SECTOR0 MOODY'S/S&P RATINGS0
Revenue Bonds 68% Aaa/AAA 79%
General Obligation Bonds00 32 Aa/AA 13
A/A 5
Baa/BBB 3
WEIGHTED AVERAGE MATURITY 19.73 years
</TABLE>
- ----------------
See footnotes on page 16.
14
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN OREGON MUNICIPAL SERIES
[FIGURES BELOW REPRESENTS LINE CHART IN ITS PRINTED FORM]
"With Load" "Without Load" "Lehman"
09/30/89 9527 10000 10000
9853 10342 10384
9814 10302 10431
10078 10579 10675
09/30/90 10002 10499 10681
10493 11014 11142
10710 11242 11393
10935 11478 11636
09/30/91 11328 11891 12089
11628 12206 12495
11665 12244 12532
12024 12621 13009
09/30/92 12274 12883 13353
12533 13155 13596
12916 13557 14101
13341 14003 14562
09/30/93 13773 14457 15054
13899 14589 15265
13277 13936 14427
13392 14057 14587
09/30/94 13445 14113 14686
13265 13923 14475
14080 14779 15498
14360 15073 15871
09/30/95 14662 15390 16329
15194 15948 17001
14959 15701 16796
15117 15868 16925
09/30/96 15435 16202 17314
15773 16556 17756
15735 16516 17715
16226 17031 18326
09/30/97 16762 17594 18879
17200 18053 19391
17398 18261 19614
17669 18546 19912
09/30/98 18184 19086 20524
18247 19153 20647
18399 19312 20830
18071 18969 20462
09/30/99 17791 18674 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- ----------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* *MONTHS* YEAR YEARS YEARS
2/1/94
----------------- --------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (7.84)% (6.79)% 4.74% 5.93%
n/a
Without Sales Charge n/a (3.30) (2.16) 5.76 6.44
n/a
CLASS C**
With Sales Charge and CDSC (5.25)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (3.32) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (4.57) (3.85) n/a n/a
n/a
Without CDSC n/a (3.62) (2.92) 4.80 n/a
3.33%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $7.48 $7.92 $8.05 CLASS A $0.354 $0.050
4.45%
CLASS C 7.48 N/A N/A CLASS C 0.100 --
3.72
CLASS D 7.48 7.91 8.04 CLASS D 0.283 0.050
3.76
HOLDINGS BY MARKET SECTOR0 MOODY'S/S&P RATINGS0
Revenue Bonds 66% Aaa/AAA 43%
General Obligation Bonds00 34 Aa/AA 35
A/A 14
WEIGHTED AVERAGE MATURITY 17.56 years Baa/BBB 8
</TABLE>
- --------------
See footnotes on page 16.
15
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SELIGMAN SOUTH CAROLINA MUNICIPAL SERIES
[FIGURES BELOW REPRESENTS LINE CHART IN ITS PRINTED FORM]
"With Load" "Without Load" "Lehman"
09/30/89 9523 10000 10000
9911 10408 10384
9873 10368 10431
10113 10620 10675
09/30/90 9949 10448 10681
10507 11034 11142
10712 11249 11393
10937 11485 11636
09/30/91 11337 11905 12089
11717 12305 12495
11770 12360 12532
12217 12830 13009
09/30/92 12479 13105 13353
12701 13337 13596
13124 13782 14101
13572 14252 14562
09/30/93 14042 14746 15054
14187 14899 15265
13311 13978 14427
13390 14062 14587
09/30/94 13393 14065 14686
13236 13900 14475
14193 14905 15498
14489 15215 15871
09/30/95 14825 15568 16329
15573 16354 17001
15274 16040 16796
15439 16213 16925
09/30/96 15836 16630 17314
16185 16997 17756
16063 16868 17715
16622 17455 18326
09/30/97 17101 17959 18879
17596 18478 19391
17779 18671 19614
18037 18942 19912
09/30/98 18582 19513 20524
18603 19536 20647
18698 19635 20830
18317 19236 20462
09/30/99 17965 18865 20380
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
Investment Results Per Share Total Returns
For Periods Ended September 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
- -------------------------------------------------------------------------
CLASS C
CLASS D
SINCE INCEPTION SIX ONE FIVE 10 SINCE
INCEPTION
5/27/99* *MONTHS* YEAR YEARS YEARS
2/1/94
----------------- -------- ------ ------- -------
- -------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a (8.51)% (7.94)% 5.02% 6.03%
n/a
Without Sales Charge n/a (3.92) (3.32) 6.05 6.55
n/a
CLASS C**
With Sales Charge and CDSC (5.89)% n/a n/a n/a n/a
n/a
Without Sales Charge and CDSC (4.01) n/a n/a n/a n/a
n/a
CLASS D**
With 1% CDSC n/a (5.43) (5.23) n/a n/a
n/a
Without CDSC n/a (4.49) (4.32) 5.06 n/a
3.09%
LEHMAN INDEX*** (1.83)++ (2.16) (0.70) 6.77 7.38
5.02++++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 1999
9/30/99 3/31/99 9/30/98 DIVIDENDS+ CAPITAL GAIN+
SEC YIELD++
--------- --------- --------- ------------- ----------------
- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $7.67 $8.18 $8.38 CLASS A $0.377 $0.066
4.26%
CLASS C 7.66 n/a n/a CLASS C 0.107 --
3.68
CLASS D 7.66 8.18 8.38 CLASS D 0.304 0.066
3.99
HOLDINGS BY MARKET SECTOR0 MOODY'S/S&P RATINGS0
Revenue Bonds 97% Aaa/AAA 60%
General Obligation Bonds00 3 Aa/AA 15
A/A 18
WEIGHTED AVERAGE MATURITY 21.62 years Baa/BBB 7
</TABLE>
- -----------------
* Returns for periods of less than one year are not annualized.
** Return figures reflect any change in price and assume all distributions
within the period are invested in additional shares. Returns for Class A
shares are calculated with and without the effect of the initial 4.75%
maximum sales charge. Returns for Class C shares are calculated with and
without the effect of the initial 1% maximum sales charge and the 1%
contingent deferred sales charge ("CDSC") that is charged on redemptions
made within 18 months of the date of purchase. Returns for Class D shares
are calculated with and without the effect of the 1% CDSC, charged on
redemptions made within one year of the date after purchase. No adjustment
was made to the performance of Class A shares 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. The rates of return will vary and the principal value of an
investment will fluctuate. Shares, if redeemed, may be worth more or less
than their original cost. A portion of each 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.
*** The Lehman Index is an unmanaged index that does not include any fees or
sales charges. It is composed of approximately 60% revenue bonds and 40%
state government obligations. Investors cannot invest directly in an index.
++ From 5/31/99.
++++ From 1/31/94.
+ Represents per share amount paid or declared for the year ended September
30, 1999 (for Class C shares, for the period May 27, 1999 to September 30,
1999).
++ Current yield, representing the annualized yield for the 30-day period
ended September 30, 1999, has been computed in accordance with SEC
regulations and will vary.
0 Percentages based on current market values of long-term holdings at
September 30, 1999.
00 Includes pre-refunded and escrowed-to-maturity securities.
16
<PAGE>
This page intentionally left blank.
17
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
NATIONAL SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
---- -------- --------------- -----------
- ---------
<S> <C> <C> <C>
ALABAMA -- 3.5% $4,000,000 Jefferson County Sewer Rev., 51/8% due 2/1/2039 ............ Aaa/AAA $
3,473,880
ALASKA -- 1.5% 1,500,000 Alaska Housing Finance Corporation Mortgage Rev.,
53/4% due 6/1/2024* ...................................... Aaa/AAA
1,442,565
CALIFORNIA -- 2.6% 1,000,000 Foothill/Eastern Transportation Corridor Agency
Toll Road Rev., 53/4% due 1/15/2040 ......................
Baa3/BBB- 950,480
1,500,000 San Joaquin Hills Transportation Corridor Agency
Rev. (Orange County Senior Lien Toll Road),
63/4% due 1/1/20320 ...................................... Aaa/AAA
1,647,030
FLORIDA -- 3.6% 4,000,000 Jacksonville Electric Authority (Electric System Rev.),
5.10% due 10/1/2032 ...................................... Aa2/AA
3,526,720
ILLINOIS -- 2.5% 2,500,000 Illinois Health Facilities Authority Rev.
(Northwestern Memorial Hospital),
6% due 8/15/2024 ......................................... Aa2/AA
2,490,200
KENTUCKY -- 2.0% 1,880,000 Trimble County Pollution Control Rev.
(Louisville Gas & Electric Co. Project),
75/8% due 11/1/2020* ..................................... Aa2/A+
1,967,213
MICHIGAN -- 2.3% 2,250,000 Michigan State Strategic Fund Pollution Control Rev.
(General Motors Corp.), 6.20% due 9/1/2020 ............... A2/A
2,307,083
MISSOURI -- 4.7% 4,750,000 St. Louis Industrial Development Authority Pollution
Control Rev. (Anheuser-Busch Companies, Inc. Project),
57/8% due 11/1/2026* .................................... A1/A+
4,648,920
NEVADA -- 4.8% 5,000,000 Clark County Industrial Development Rev. (Nevada Power
Company Project), 5.90% due 11/1/2032* ................... NR/BBB
4,702,550
NEW YORK -- 4.7% 3,500,000 New York City GOs, 71/4% due 8/15/2024o Aaa/A-
3,696,980
1,000,000 Trust for Cultural Resources of the City of New York Rev.
(American Museum of Natural History), 5.65% due 4/1/2027 ..
Aaa/AAA 983,550
OHIO -- 3.7% 4,000,000 Ohio Housing Finance Agency Mortgage Rev.
(Residential Mortgage), 5.40% due 9/1/2029* .............. NR/AAA
3,668,000
SOUTH 2,000,000 Oconee County Pollution Control Rev. (Duke Power
CAROLINA -- 2.1% Company Project), 71/2% due 2/1/2017 ....................... Aa2/AA-
2,064,980
SOUTH 6,000,000 South Dakota Housing Development Authority Rev.
DAKOTA -- 6.2% (Homeownership Mortgage), 6.15% due 5/1/2026* ............ Aa1/AAA
6,070,140
TENNESSEE -- 4.7% 5,000,000 Shelby County Health, Educational and Housing Facility
Board Rev. (St. Jude Children's Research Hospital),
53/8% due 7/1/2024 ....................................... NR/AA
4,653,950
TEXAS -- 19.0% 3,700,000 Harris County Health Facilities Development Corp.
Hospital Rev. (St. Luke's Episcopal Hospital
Project), 63/4% due 2/15/2021++ ............................ Aa3/AAA
3,895,952
2,000,000 Harris County Health Facilities Development Corp.
SCH Health Care System Rev. (Sisters of
Charity of the Incarnate Word), 7.10% due 7/1/2021o ..... Aa3/NR
2,134,380
2,000,000 Harris County Health Facilities Development Corp.
SCH Health Care System Rev. (Sisters of Charity
of the Incarnate Word), 53/4% due 7/1/2027++ ............ Aa3/AAA
2,001,280
</TABLE>
- -----------------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
18
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
NATIONAL SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
---- -------- --------------- -----------
- ---------
<S> <C> <C> <C>
TEXAS (CONTINUED) $4,750,000 Potter County Industrial Development Corp. Pollution
Control Rev. (Southwestern Public Service
Company Project), 53/4% due 9/1/2016 ..................... Aaa/AAA $
4,779,355
2,375,000 San Antonio Electric & Gas Rev., 51/2% due 2/1/2020 ........ Aa1/AA
2,284,869
125,000 San Antonio Electric & Gas Rev., 51/2% due 2/1/2020o .......
Aa1/AA 130,994
1,975,000 Texas Veterans Housing Assistance GOs,
6.80% due 12/1/2023* .................................... Aa1/AA
2,065,593
1,340,000 Travis County Housing Finance Corporation (Single
Family Mortgage Rev.), 6.95% due 10/1/2027 ................. NR/AAA
1,396,306
VIRGINIA -- 9.7% 5,000,000 Fairfax County Industrial Development Authority
Health Care Rev. (Inova Health System Project),
6% due 8/15/2026 ........................................ Aa2/AA
5,054,400
5,000,000 Pocahontas Parkway Association Toll Road Bonds
(Route 895 Connector), 51/2% due 8/15/2028 ............. Baa3/BBB-
4,488,850
WASHINGTON -- 9.9% 4,325,000 King County Sewer GOs, 61/8% due 1/1/2033 .................. Aaa/AAA
4,460,632
5,520,000 Seattle Water System Rev., 55/8% due 8/1/2026 .............. Aaa/AAA
5,309,081
WISCONSIN -- 6.2% 6,000,000 LaCrosse Resource Recovery Rev. (Northern States Power
Company Project), 6% due 11/1/2021* .................... A1/AA-
6,050,940
WYOMING -- 4.1% 4,000,000 Sweetwater County Pollution Control Rev. (Idaho Power
Company Project), 6.05% due 7/15/2026 .................. A3/A
4,004,960
- ------------
TOTAL MUNICIPAL BONDS (COST $97,130,825)-- 97.8% .............................................................
96,351,833
VARIABLE RATE DEMAND NOTES (COST $900,000)-- 0.9%
............................................................ 900,000
OTHER ASSETS LESS LIABILITIES-- 1.3% .........................................................................
1,238,603
- ------------
NET ASSETS-- 100.0% ..........................................................................................
$98,490,436
============
</TABLE>
COLORADO SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C> <C>
$3,000,000 Adams County, CO Pollution Control Rev. (Public Service Co. of Colorado Project),
57/8% due 4/1/2014.............................................................. Aaa/AAA
$3,041,940
1,000,000 Boulder, Larimer and Weld Counties, CO (Vrain Valley School District),
5% due 12/15/2022 ..............................................................
Aaa/AAA 896,230
2,000,000 Colorado Health Facilities Authority Rev. (North Colorado Medical Center),
6% due 5/15/2020 ............................................................... Aaa/AAA
2,004,560
2,250,000 Colorado Health Facilities Authority Rev. (Sisters of Charity of Leavenworth
Health Services Corporation), 5% due 12/1/2025 ................................. Aaa/AAA
1,973,407
2,000,000 Colorado Health Facilities Authority Rev. (Catholic Health Initiatives),
5% due 12/1/2028 ............................................................... Aa2/AA
1,692,120
2,400,000 Colorado Springs, CO Sales & Use Tax Rev., 5% due 12/1/2015 ...................... A1/AA
2,255,232
2,350,000 Colorado Springs, CO Utilities Rev., 53/8% due 11/15/2026 ........................ Aa2/AA
2,198,942
</TABLE>
- ---------------------
+ Ratings have not been audited by Deloitte & Touche LLP.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
19
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
COLORADO SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$ 105,000 Colorado Water Resources & Power Development Authority
(Clean Water Rev.), 67/8% due 9/1/2011 ......................................... Aaa/AAA $
110,609
2,000,000 Colorado Water Resources & Power Development Authority
(Clean Water Rev.), 6% due 9/1/2014 ............................................ Aaa/AAA
2,079,200
1,000,000 Colorado Water Resources & Power Development Authority
(Clean Water Rev.), 6.30% due 9/1/2014 ......................................... Aaa/AAA
1,055,530
2,000,000 Denver, CO City & County Department of Aviation Airport System Rev.,
51/2% due 11/15/2025 ........................................................... Aaa/AAA
1,917,040
500,000 Denver, CO City & County School District GOs, 5% due 12/1/2019 ................... Aaa/AAA
451,660
2,200,000 Denver, CO City & County School District GOs, 5% due 12/1/2023 ................... Aaa/AAA
1,951,708
2,000,000 Denver, CO Health and Hospital Authority Healthcare Rev., 53/8% due 12/1/2028 .... Baa2/BBB
1,716,480
1,985,000 Fort Collins, CO GOs Water Bonds, 63/8% due 12/1/2012o ........................... Aa1/AA
2,122,541
2,500,000 Fort Collins Pollution Control Rev. (Anheuser-Busch Project), 6% due 9/1/2031 .... A1/A+
2,512,350
1,000,000 Fountain Valley Authority, CO Water Treatment Rev., 6.80% due 12/1/2019o ......... Aa2/AA
1,042,410
2,250,000 Jefferson County, CO Open Space Sales Tax Rev., 5% due 11/1/2019 ................. Aaa/AAA
2,033,010
1,895,000 Northglenn, CO GOs Joint Water & Wastewater Utility, 6.80% due 12/1/2008++ ....... Aaa/NR
2,061,798
2,500,000 Platte River Power Authority, CO Power Rev., 61/8% due 6/1/2014 .................. Aa3/A+
2,614,375
1,205,000 Pueblo County, CO Single Family Mortgage Rev., 7.05% due 11/1/2027 ............... NR/AAA
1,261,527
2,000,000 Puerto Rico Highway & Transportation Authority Rev., 51/2% due 7/1/2036 .......... Baa1/A
1,909,000
2,000,000 University of Colorado Hospital Authority Rev., 51/4% due 11/15/2022 ............. Aaa/NR
1,844,040
2,000,000 Virgin Islands Public Finance Authority Rev., 51/2% due 10/1/2022 ................ NR/BBB-
1,873,740
2,000,000 Westminster, CO (Adams & Jefferson Counties) Sales & Use Tax Rev.,
7% due 12/1/2008 ............................................................... Aaa/AAA
2,085,440
- -----------
Total Municipal Bonds (Cost $45,364,376) -- 98.0% .........................................................
44,704,889
Variable Rate Demand Notes (Cost $100,000) -- 0.2% ........................................................
100,000
Other Assets Less Liabilities -- 1.8% .....................................................................
821,549
- -----------
NET ASSETS -- 100.0% ......................................................................................
$45,626,438
===========
</TABLE>
GEORGIA SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$ 2,500,000 Atlanta, GA Water & Wastewater Rev., 5% due 11/1/2038 ............................ Aaa/AAA $
2,127,825
1,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 7.40% due 11/1/2010* ......................................... A1/A+
1,129,600
2,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 63/4% due 2/1/2012* .......................................... A1/A+
2,124,040
3,000,000 Chatham County, GA School District GOs, 51/2% due 8/1/2020 ....................... Aaa/AAA
2,937,870
2,000,000 Columbia County, GA School District GOs, 61/4% due 4/1/2013o ..................... Aaa/AAA
2,174,380
1,000,000 DeKalb County, GA GOs, 51/4% due 1/1/2020 ........................................ Aa1/AA+
937,130
1,000,000 DeKalb County, GA Water & Sewerage Rev., 7% due 10/1/2014o ....................... Aaa/AA
1,050,760
2,000,000 DeKalb County, GA Water & Sewerage Rev., 5% due 10/1/2028 ........................ Aa2/AA
1,761,460
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
20
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
GEORGIA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$ 700,000 DeKalb Private Hospital Authority, GA Rev. (Emory University Project),
63/4% due 4/1/2017o ............................................................ Aa1/AA $
739,410
300,000 DeKalb Private Hospital Authority, GA Rev. (Emory University Project),
7% due 4/1/2021o ............................................................... Aa1/AA
317,973
1,000,000 Fulco Hospital Authority Health System Rev. (Catholic Health East),
5% due 11/15/2028 .............................................................. Aaa/AAA
864,280
1,820,000 Fulton County, GA Development Authority Special Facilities Rev.,
(Delta Airlines, Inc. Project), 51/2% due 5/1/2033* ............................ Baa3/BBB-
1,591,426
2,250,000 Georgia Housing & Finance Authority (Single Family Mortgage),
5.20% due 6/1/2029* ............................................................ NR/AAA
1,979,235
2,500,000 Georgia Municipal Gas Authority Rev. (Southern Storage Gas Project),
6.40% due 7/1 .................................................................. NR/A-
2,574,125
1,000,000 Georgia State GOs, 53/4% due 2/1/2011* ........................................... Aaa/AAA
1,037,730
1,000,000 Gwinnett County, GA School District GOs, 6.40% due 2/1/2012 ...................... Aa1/AA+
1,102,410
2,250,000 Gwinnett County, GA Water & Sewerage Authority Rev., 5.30% due 8/1/2022 .......... Aaa/AAA
2,130,188
1,500,000 Henry County School District, GA GOs, 6.45% due 8/1/2011 ......................... A1/A+
1,654,530
500,000 Metropolitan Atlanta Rapid Transit Authority, GA Sales Tax Rev.,
61/4% due 7/1/2018 A1/AA-
539,890
2,000,000 Monroe County, GA Development Authority Pollution Control Rev.
(Georgia Power Company Plant -- Scherer Project), 6% due 7/1/2025 .............. Aaa/AAA
2,040,360
2,500,000 Peachtree City, GA Water & Sewerage Authority Sewer System Rev.,
5.60% due 3/1/2027 ............................................................. Aa3/AA
2,479,100
2,000,000 Private Colleges & Universities Authority Rev., GA (Spelman College Project),
6.20% due 6/1/2014 ............................................................. Aaa/AAA
2,117,100
1,500,000 Private Colleges & Universities Authority Rev.,
GA (Mercer University Project), 61/2% due 11/1/2015++ .......................... Aaa/AAA
1,655,895
3,000,000 Private Colleges & Universities Authority Rev.,
GA (Agnes Scott College Project), 55/8% due 6/1/2023 ........................... A1/AA
2,940,150
1,000,000 Private Colleges & Universities Authority Rev.,
GA (Mercer University Project), 53/8% due 10/1/2029 ............................ A3/NR
903,270
1,500,000 Puerto Rico Highway & Transportation Authority Rev.,
51/2% due 7/1/2026 ............................................................. Baa1/A
1,435,155
2,000,000 Savannah, GA Airport Rev., 61/4% due 1/1/2015* ................................... Aaa/AAA
2,074,380
- -----------
TOTAL MUNICIPAL BONDS (Cost $44,261,498)-- 98.3% ...........................................................
44,419,672
OTHER ASSETS LESS LIABILITIES--1.7% ........................................................................
766,233
- -----------
NET ASSETS-- 100.0% ........................................................................................
$45,185,905
===========
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
21
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
LOUISIANA SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$3,000,000 Bastrop, LA Industrial Development Board Pollution Control Rev.
(International Paper Company Project), 6.90% due 3/1/2007 ...................... A3/BBB+
$3,177,570
2,500,000 Calcasieu Parish, LA Industrial Development Board (Conoco Inc. Project),
53/4% due 12/1/2026* ........................................................... Aa3/AA-
2,423,000
1,675,000 East Baton Rouge Parish, LA Mortgage Finance Authority (Single Family
Mortgage Rev.), 5.40% due 10/1/2025
.............................................................................................. Aaa/NR
1,562,239
3,000,000 East Baton Rouge Parish, LA Public Improvement Sales & Use Tax Rev.,
5.90% due 2/1/2018 Aaa/AAA
3,035,820
2,000,000 Houma, LA Utilities Rev., 61/4% due 1/1/2012 ..................................... Aaa/AAA
2,101,380
2,000,000 Jefferson Parish, LA Home Mortgage Authority (Single Family Mortgage Rev.),
6% due 12/1/2024* .............................................................. Aa/NR
2,000,820
2,000,000 Jefferson Parish, LA Hospital Service District Rev., 5% due
7/1/2028 ....................................................................... Aaa/AAA
1,720,100
2,500,000 Lafayette, LA Public Improvement Sales Tax, 5% due 5/1/2021 ...................... Aaa/AAA
2,224,425
2,495,000 Louisiana Housing Finance Agency Mortgage Rev. (Single Family),
6.45% due 6/1/2027* ............................................................ Aaa/AAA
2,542,454
2,500,000 Louisiana Public Facilities Authority Hospital Rev. (Franciscan Missionaries
of Our Lady Health System Project), 5% due 7/1/2025 ............................ Aaa/AAA
2,168,125
2,500,000 Louisiana Public Facilities Authority Rev. (Loyola University Project),
55/8% due 10/1/2016 ............................................................ Aaa/AAA
2,485,125
3,000,000 Louisiana Public Facilities Authority Rev. (Tulane University),
53/4% due 2/15/2021 ............................................................ Aaa/AAA
2,970,660
1,500,000 Louisiana State GOs, 5% due 4/15/2018 Aaa/AAA
1,356,840
2,500,000 Ouachita Parish, LA Hospital Service District Rev. (Glenwood Regional Medical
Center), 53/4% due 5/15/2021 ................................................... Aaa/AAA
2,457,325
185,000 Ouachita Parish, LA Industrial Development Rev. (International Paper Company),
61/2% due 4/1/2006 ............................................................. NR/NR
185,216
2,500,000 Saint Bernard Parish, LA Exempt Facility Rev. (Mobil Oil Corporation Project),
5.90% due 11/1/2026* ........................................................... Aa2/AA
2,515,550
1,250,000 Saint Charles Parish, LA Environmental Improvement Rev. (Louisiana Power and
Light Company Project), 6.20% due 5/1/2023* .................................... Baa2/BBB
1,239,975
2,960,000 Saint Charles Parish, LA Waterworks & Wastewater District Utility Rev.,
7.15% due 7/1/2016 ............................................................. Aaa/AAA
3,146,569
2,500,000 Shreveport, LA Airport System Rev., 53/8% due 1/1/2024* .......................... Aaa/AAA
2,319,450
1,555,000 Shreveport, LA GOs, 71/2% due 4/1/2006++ ......................................... Aaa/AAA
1,774,115
2,750,000 Shreveport, LA GOs, 5% due 3/1/2019 .............................................. Aaa/AAA
2,483,663
2,050,000 Sulphur, LA Housing & Mortgage Finance Trust (Residential Mortgage Rev.),
71/4% due 12/1/2010++ .......................................................... Aaa/AAA
2,312,011
2,500,000 Tangipahoa Parish, LA Hospital Service District No. 1 Rev. (Northoaks Medical Center),
61/4% due 2/1/2024 ............................................................. Aaa/AAA
2,565,350
- ------------
TOTAL MUNICIPAL BONDS (Cost $50,753,313)-- 96.8% ...........................................................
50,767,782
VARIABLE RATE DEMAND NOTES (Cost $800,000)-- 1.5% ..........................................................
800,000
OTHER ASSETS LESS LIABILITIES-- 1.7% .......................................................................
883,032
- ------------
NET ASSETS-- 100.0% ........................................................................................
$52,450,814
============
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
22
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
MARYLAND SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$1,000,000 Anne Arundel County, MD GOs, 51/8% due 2/1/2026 .................................. Aa2/AA+ $
909,480
1,340,000 Anne Arundel County, MD GOs, 51/8% due 2/1/2027 .................................. Aa2/AA+
1,216,787
3,000,000 Anne Arundel County, MD Pollution Control Rev. (Baltimore Gas and Electric
Company Project), 6% due 4/1/2024 .............................................. A2/A
3,040,200
2,000,000 Baltimore, MD Consolidated Public Improvement GOs, 63/8% due 10/15/2006 .......... Aaa/AAA
2,193,160
2,500,000 Baltimore, MD Port Facilities Rev. (Consolidated Coal Sales Co. Project),
61/2% due 10/1/2011 ............................................................ Aa3/AA-
2,671,850
2,000,000 Baltimore, MD Project and Refunding Rev. (Water Projects), 51/2% due 7/1/2026 .... Aaa/AAA
1,955,980
2,000,000 Howard County, MD Metropolitan District Project GOs, 51/2% due 8/15/2022 ......... Aaa/AAA
1,960,840
2,000,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Multi-Family Housing), 7.70% due 5/15/2020* ....................... Aa/NR
2,084,860
2,420,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Single Family Program), 6.80% due 4/1/2024* ....................... Aa2/NR
2,508,451
2,500,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Residential Rev.), 57/8% due 9/1/2025* ............................ Aa2/NR
2,481,775
2,500,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Multi-Family Housing), 6.70% due 5/15/2027 ........................ Aa/NR
2,614,300
2,710,000 Maryland Health & Higher Educational Facilities Authority Rev. (Good Samaritan
Hospital), 53/4% due 7/1/2019++ ................................................ Aaa/AAA
2,749,431
2,000,000 Maryland Health & Higher Educational Facilities Authority Rev.
(Suburban Hospital), 51/8% due 7/1/2021 ........................................ A1/A+
1,773,240
2,750,000 Maryland Health & Higher Educational Facilities Authority Rev.
(Anne Arundel Medical Center), 5% due 7/1/2023 ................................. Aaa/AAA
2,471,260
2,500,000 Maryland Health & Higher Educational Facilities Authority Rev. (Francis Scott
Key Medical Center), 5% due 7/1/2023 ........................................... Aaa/AAA
2,246,600
2,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Mercy Medical
Center), 53/4% due 7/1/2026 .................................................... Aaa/AAA
2,007,980
1,500,000 Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel
Medical Center), 51/8% due 7/1/2028 ............................................ Aaa/AAA
1,353,225
1,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Charity Obligated
Group), 5% due 11/1/2029 ....................................................... Aa2/AA+
881,570
2,000,000 Maryland Transportation Authority Rev. (Baltimore/Washington International
Airport Project), 61/4% due 7/1/2014* .......................................... Aaa/AAA
2,084,600
2,000,000 Maryland Transportation Authority Rev. Transportation Facilities Projects,
53/4% due 7/1/2015 ............................................................. A1/A+
2,015,460
1,000,000 Maryland Water Quality Financing Administration Revolving Loan Fund Rev.,
6.70% due 9/1/2013o ............................................................ Aaa/AAA
1,065,600
1,000,000 Maryland Water Quality Financing Administration Revolving Loan Fund Rev.,
7.10% due 9/1/2013o ............................................................ Aaa/AAA
1,072,900
240,000 Montgomery County, MD Housing Opportunities Commission (Single
Family Mortgage Rev.), 73/8% due 7/1/2017 ..................................... Aa2/NR
246,993
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
23
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
MARYLAND SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$1,400,000 Montgomery County, MD Housing Opportunities Commission Rev., 6.20% due 7/1/2026*.. Aa2/NR $
1,421,546
2,000,000 Northeast Maryland Waste Disposal Authority Solid Waste Rev. (Montgomery County
Resource Recovery Project), 6.30% due 7/1/2016* ................................. A2/NR
2,062,880
1,000,000 Puerto Rico Highway & Transportation Authority Rev., 51/2% due 7/1/2036 ........... Baa1/A
954,500
630,000 Puerto Rico Housing Finance Corporation (Single Family Mortgage Rev.
Portfolio 1-C), 6.85% due 10/15/2023 ............................................ Aaa/AAA
656,542
2,000,000 Washington Suburban Sanitary District, MD, 61/2% due 1/1/2016 ..................... Aa1/AA
2,109,740
- ------------
TOTAL MUNICIPAL BONDS (Cost $49,828,474)-- 97.0% ...........................................................
50,811,750
VARIABLE RATE DEMAND NOTES (Cost $700,000)-- 1.3% ..........................................................
700,000
OTHER ASSETS LESS LIABILITIES-- 1.7% .......................................................................
860,796
- ------------
NET ASSETS-- 100.0% ........................................................................................
$52,372,546
============
</TABLE>
MASSACHUSETTS SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$5,000,000 Boston, MA Water & Sewer Commission General Rev., 51/4% due 11/1/2019 ............. A1/A+ $
4,799,150
4,000,000 Massachusetts Bay Transportation Authority General Transportation System Rev.,
55/8% due 3/1/2026o ............................................................. Aa3/AA-
4,218,880
805,000 Massachusetts Education Loan Authority Education Loan Rev., 8% due 6/1/2002 ....... NR/AAA
810,563
3,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Daughters of
Charity National Health Systems -- Carney Hospital), 6% due 7/1/2009 ............ Aa2/AA+
3,155,820
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+
2,565,000
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Newton-Wellesley
Hospital), 6% due 7/1/2018 ...................................................... Aaa/AAA
5,030,200
3,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Williams College),
53/4% due 7/1/2019 .............................................................. Aa1/AA+
3,450,895
2,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University),
81/8% due 7/1/20200 ............................................................. NR/NR
2,615,700
5,100,000 Massachusetts Health & Educational Facilities Authority Rev. (Smith College),
53/4% due 7/1/2024 .............................................................. Aa2/AA-
4,987,545
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Partners Healthcare
System), 53/8% due 7/1/2024 ..................................................... Aaa/AAA
4,647,800
6,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Harvard University),
55/8% due 11/1/2028 ............................................................. Aaa/AAA
6,331,780
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (South Shore Hospital),
53/4% due 7/1/2029 .............................................................. A2/AA
4,663,550
5,000,000 Massachusetts Housing Finance (Rental Housing Mortgage Rev.), 51/2% due 7/1/2030*.. Aaa/AAA
4,643,850
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
24
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
MASSACHUSETTS SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$4,985,000 Massachusetts Housing Finance Agency Rev. (Single Family Housing),
51/2% due 12/1/2030* ............................................................. Aaa/AAA $
4,589,041
2,000,000 Massachusetts Industrial Finance Agency Electric Utility Rev. (Nantucket
Electric Company Project), 57/8% due 7/1/2017* .................................. Aaa/AAA
2,001,820
3,500,000 Massachusetts Industrial Finance Agency Rev. (Phillips Academy), 53/8% due 9/1/2023 Aa1/AA+
3,261,650
3,000,000 Massachusetts Industrial Finance Agency Rev. (College of the Holy Cross),
55/8% due 3/1/2026 ............................................................... Aaa/AAA
2,917,470
3,000,000 Massachusetts Industrial Finance Agency Rev. (Suffolk University),
51/4% due 7/1/2027 ............................................................... Aaa/AAA
2,746,470
2,400,000 Massachusetts Port Authority Rev., 5% due 7/1/2023 ................................. Aa3/AA-
2,109,000
2,000,000 Massachusetts Port Authority Rev., 5% due 7/1/2028* ................................ Aa3/AA-
1,705,640
3,000,000 Massachusetts Port Authority Special Facilities Rev. (BOSFUEL Project),
53/4% due 7/1/2039* .............................................................. Aaa/AAA
2,857,050
5,000,000 Massachusetts State Consolidated Loan GOs, 5% due 5/1/2019 ......................... Aa3/AA-
4,513,500
5,000,000 Massachusetts Water Pollution Abatement Trust Pool Program, 51/2% due 8/1/2029 .... Aaa/AAA
4,781,100
5,000,000 Plymouth County, MA Certificates of Participation (Plymouth County Correctional
Facility Project), 5% due 4/1/2022 ............................................... Aaa/AAA
4,403,800
4,000,000 Puerto Rico Highway & Transportation Authority Rev., 51/2% due 7/1/2036 ............ Baa1/A
3,818,000
2,750,000 Puerto Rico Port Authority Rev., 6% due 7/1/2021* .................................. Aaa/AAA
2,787,510
- ------------
TOTAL MUNICIPAL BONDS (Cost $95,851,443)-- 98.3% ...........................................................
94,412,784
- ------------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE RATE DEMAND NOTES
--------------------------
<S> <C> <C> <C>
100,000 Floyd County, GA Development Authority Environmental Improvement Rev.
(Georgia Kraft Co. Project) due 12/1/2015 ........................................ P-1/NR
100,000
2,500,000 Martin County, FL Pollution Control Rev. (Florida Power & Light Co. Project)
due 9/1/2024 ..................................................................... P-1/NR
2,500,000
700,000 New York City GOs due 8/1/2022 ..................................................... VMIG-1/A-1+
700,000
600,000 New York City Municipal Water Finance Authority, NY Water & Sewer System Rev.
due 10/1/2021 .................................................................... VMIG-1/A-1+
600,000
300,000 New York City Municipal Water Finance Authority, NY Water & Sewer System Rev.
due 6/15/2025 .................................................................... VMIG-1/A-1+
300,000
900,000 New York State Energy Research & Development Authority Pollution Control Rev.
(Niagara Mohawk) due 7/1/2015 .................................................... NR/A-1+
900,000
- ------------
TOTAL VARIABLE RATE DEMAND NOTES (Cost $5,100,000) -- 5.3% .................................................
5,100,000
- ------------
OTHER ASSETS LESS LIABILITIES-- (3.6)% .....................................................................
(3,422,220)
- ------------
NET ASSETS-- 100.0% ........................................................................................
$96,090,564
============
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
25
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
MICHIGAN SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$5,000,000 Capital Region Airport Authority, MI Airport Rev., 6.70% due 7/1/2021* ............ Aaa/AAA $
5,302,850
5,000,000 Detroit, MI GOs, 51/2% due 4/1/2016 ............................................... Aaa/AAA
4,909,650
6,000,000 Detroit, MI Water Supply System Rev., 61/4% due 7/1/20120 ......................... Aaa/AAA
6,403,740
3,000,000 Grand Haven, MI Electric System Rev., 51/4% due 7/1/2013 .......................... Aaa/AAA
2,950,740
5,000,000 Grand Rapids, MI Water Supply System Rev., 53/4% due 1/1/2018 ..................... Aaa/AAA
5,001,900
2,000,000 Grand Traverse County, MI Hospital Finance Authority (Munson Healthcare
Obligated Group), 5% due 7/1/2028 ............................................... Aaa/NR
1,732,280
2,500,000 Kalamazoo, MI Hospital Finance Authority Rev. (Bronson Methodist Hospital),
51/2% due 5/15/2028 ............................................................. Aaa/NR
2,365,700
5,000,000 Kent County, MI Airport Rev., 6.10% due 1/1/2025*o ................................ Aa/AAA
5,417,450
1,850,000 Kent County, MI Airport Rev., 5% due 1/1/2028* .................................... Aaa/AAA
1,592,813
2,775,000 Kentwood, MI Public Schools Building & Site GOs, 6.40% due 5/1/20150 .............. Aa2/A+
2,964,366
3,000,000 Lansing, MI Building Authority Rev., 5.60% due 6/1/2019 ........................... Aa3/AA+
2,968,020
3,250,000 Marquette, MI Hospital Finance Authority Rev. (Marquette General Hospital),
6.10% due 4/1/2019 .............................................................. Aaa/AAA
3,277,853
3,000,000 Michigan Public Power Agency Rev. (Belle River Project), 51/4% due 1/1/2018 ....... A1/AA-
2,780,400
3,000,000 Michigan State Building Authority Rev., 61/4% due 10/1/2020 ....................... Aa2/AA
3,098,310
5,000,000 Michigan State GOs (Environmental Protection Program), 5.40% due 11/1/2019 ........ Aa1/AA+
4,810,100
5,000,000 Michigan State Hospital Finance Authority Rev. (Oakwood Obligated Group),
51/8% due 8/15/2025 ............................................................. Aaa/AAA
4,446,400
4,500,000 Michigan State Hospital Finance Authority Rev. (St. John Hospital),
51/4% due 5/15/2026 ............................................................. Aaa/AAA
4,081,410
5,250,000 Michigan State Hospital Finance Authority Rev. (Mercy Health Services
Obligated Group), 53/4% due 8/15/2026 ........................................... Aa3/AA-
5,035,013
5,000,000 Michigan State Hospital Finance Authority Rev. (Charity Obligated Group),
51/8% due 11/1/2029 ............................................................. Aa2/AA+
4,319,350
5,000,000 Michigan State Hospital Finance Authority Rev. (Sparrow Obligated Group),
6% due 11/15/2036 ............................................................... Aaa/AAA
4,984,800
1,285,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.80% due 12/1/2016 ............................................................. NR/AA+
1,322,907
3,925,000 Michigan State Housing Development Authority Rev. (Rental Housing),
6.65% due 4/1/2023 .............................................................. NR/AA-
4,142,994
4,000,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.05% due 12/1/2027 ............................................................. NR/AA+
4,029,080
3,000,000 Michigan State Strategic Fund Pollution Control Rev. (Detroit Edison Company),
61/2% due 2/15/2016 ............................................................. Aaa/AAA
3,156,210
6,000,000 Michigan State Strategic Fund Pollution Control Rev. (General Motors Corp.),
6.20% due 9/1/2020 .............................................................. A2/A
6,152,220
5,000,000 Michigan State Trunk Line Rev., 5% due 11/1/2026 .................................. Aaa/AAA
4,382,700
2,000,000 Midland, MI Water Supply System Rev., 7.20% due 4/1/2010 .......................... A3/A
2,069,220
6,300,000 Oxford, MI Area Community Schools GOs, 51/2% due 5/1/2021 ......................... Aaa/AAA
6,098,715
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
26
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
MICHIGAN SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$5,000,000 Royal Oak, MI Hospital Finance Authority Rev. (William Beaumont Hospital),
51/4% due 1/1/2020 ............................................................ Aa3/AA $
4,514,500
3,000,000 University of Michigan Hospital Rev., 63/8% due 12/1/20240 ...................... Aa2/AA
3,084,090
5,000,000 Western Michigan State University Rev., 51/8% due 11/15/2022 .................... Aaa/AAA
4,544,500
3,000,000 Wyandotte, MI Electric Rev., 61/4% due 10/1/2017 ................................ Aaa/AAA
3,090,630
- -------------
TOTAL MUNICIPAL BONDS (Cost $124,995,202)-- 97.9% .........................................................
125,030,911
VARIABLE RATE DEMAND NOTES (Cost $1,500,000)-- 1.2% .......................................................
1,500,000
OTHER ASSETS LESS LIABILITIES-- 0.9% ......................................................................
1,217,419
- -------------
NET ASSETS-- 100.0% .......................................................................................
$127,748,330
=============
</TABLE>
MINNESOTA SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$5,000,000 Becker, MN Pollution Control Rev. (Northern States Power Company),
6.80% due 4/1/2007 ............................................................. A1/A+ $
5,107,750
1,500,000 Buffalo, MN Independent School District GOs, 6.15% due 2/1/20220 ................. Aaa/AAA
1,551,495
2,250,000 Burnsville - Eagan - Savage, MN Independent School District GOs,
51/8% due 2/1/2016 ............................................................. Aa1/NR
2,125,125
2,350,000 Burnsville - Eagan - Savage, MN Independent School District GOs,
51/8% due 2/1/2017 ............................................................. Aa1/NR
2,200,023
1,500,000 Cloquet, MN Pollution Control Rev. (Potlatch Corporation Projects),
5.90% due 10/1/2026 ............................................................ NR/BBB+
1,435,140
2,000,000 Cuyana Range Hospital District, MN Health Facilities Rev., 6% due 6/1/2029 ....... NR/NR
1,806,200
5,000,000 Edina, MN Housing Development Rev. (Edina Park Plaza Project),
7.70% due 12/1/2028 ............................................................ Aa/NR
5,108,200
3,545,000 Fridley, MN Independent School District GOs, 5.35% due 2/1/2021 .................. Aaa/AAA
3,388,453
1,500,000 Minneapolis, MN GOs, 6% due 3/1/2016 ............................................. Aaa/AAA
1,551,315
4,725,000 Minneapolis, MN Rev. (University Gateway Project), 51/4% due 12/1/2024 ........... Aa2/AA
4,388,674
3,000,000 Minneapolis, MN Special School District GOs, 5% due 2/1/2014 ..................... Aa1/AA+
2,855,190
5,000,000 Minneapolis - St. Paul, MN Housing & Redevelopment Authority Health Care Rev.
(Children's Health Care), 51/2% due 8/15/2025 .................................. Aaa/AAA
4,774,150
4,000,000 Minneapolis - St. Paul, MN Metropolitan Airport Commission Rev.,
5% due 1/1/2030 ................................................................ Aaa/AAA
3,494,520
2,250,000 Minnesota Agricultural & Economic Development Board Rev. (Evangelical
Lutheran Good Samaritan Society Project), 5.15% due 12/1/2022 .................. Aaa/AAA
2,039,738
1,250,000 Minnesota Agricultural & Economic Development Board Rev. (Evangelical
Lutheran Good Samaritan Society Project), 5% due 12/1/2023 ..................... Aaa/AAA
1,104,525
3,000,000 Minnesota Agricultural & Economic Development Board Health Care Facilities
Rev. (Benedictine Health System -- St. Mary's Duluth Clinic Health
System Obligated Group), 51/8% due 2/15/2029 .................................. Aaa/AAA
2,661,930
2,775,000 Minnesota Higher Education Facilities Authority Rev. (University of
St. Thomas), 5.40% due 4/1/2022 ................................................ A2/NR
2,646,517
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
o Pre-refunded security.
See Notes to Financial Statements.
27
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
MINNESOTA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$2,000,000 Minnesota Higher Education Facilities Authority Rev. (St. John's University),
5.40% due 10/1/2022 ............................................................... A3/NR $
1,863,120
1,775,000 Minnesota Higher Education Facilities Authority Rev. (University of St. Thomas),
5.40% due 4/1/2023 ................................................................ A2/NR
1,671,518
2,500,000 Minnesota Higher Education Facilities Authority Rev. (St. Olaf College),
51/4% due 4/1/2029 ................................................................ A3/NR
2,248,450
465,000 Minnesota Housing Finance Agency (Housing Development), 61/4% due 2/1/2020 .......... Aa2/AA
472,156
800,000 Minnesota Housing Finance Agency (Single Family Mortgage), 5.65% due 7/1/2022* ..... Aa2/AA+
761,600
5,000,000 Minnesota Housing Finance Agency (Single Family Mortgage), 6.85% due 1/1/2024* ..... Aa2/AA+
5,150,000
1,500,000 Minnesota Public Facilities Authority Water Pollution Control Rev.,
7.10% due 3/1/20120 ............................................................... Aaa/AAA
1,550,730
4,000,000 Minnesota Public Facilities Authority Water Pollution Control Rev.,
61/4% due 3/1/20150 ............................................................... Aaa/AAA
4,311,240
5,000,000 Minnesota State GOs, 5.70% due 5/1/2016 ............................................. Aaa/AAA
5,058,750
5,000,000 North Saint Paul - Maplewood, MN Independent School District GOs,
51/8% due 2/1/2025 ................................................................ Aa1/AA+
4,523,700
2,500,000 Northfield, MN Independent School District GOs, 51/4% due 2/1/2017 .................. Aa1/NR
2,387,525
4,000,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
7.45% due 11/15/20060 ............................................................. NR/AA+
4,155,920
4,500,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
61/4% due 11/15/2014 .............................................................. NR/AA+
4,725,675
2,575,000 Rochester, MN Independent School District GOs, 55/8% due 2/1/20160 .................. Aaa/AA+
2,682,558
2,715,000 Rochester, MN Independent School District GOs, 55/8% due 2/1/20170 .................. Aaa/AA+
2,828,406
4,500,000 Saint Paul, MN Housing and Redevelopment Health Care Rev.,
(Regions Hospital Project), 5.30% due 5/15/2028 ................................... NR/BBB+
3,879,855
45,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
91/8% due 10/1/2000 ............................................................... NR/CCC
45,064
5,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
91/8% due 12/1/2000 ............................................................... NR/CCC
5,004
55,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
91/8% due 12/1/2000 ............................................................... NR/CCC
55,041
50,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
91/8% due 10/1/2001 ............................................................... NR/CCC
50,103
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
91/8% due 12/1/2001 ............................................................... NR/CCC
10,030
55,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
91/8% due 12/1/2001 ............................................................... NR/CCC
55,167
5,000 Saint Paul Port Authority, MN Industrial Development Rev. Series L,
93/4% due 12/1/2001 ............................................................... NR/CCC
5,025
50,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
91/8% due 10/1/2002 ............................................................... NR/CCC
50,039
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
28
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
MINNESOTA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$ 10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
91/8% due 12/1/2002 ............................................................ NR/CCC $
9,999
60,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
91/8% due 12/1/2002 ............................................................ NR/CCC
59,993
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series L,
93/4% due 12/1/2002 ............................................................ NR/CCC
10,023
1,500,000 Southern Minnesota Municipal Power Agency-- Power Supply System Rev.,
53/4% due 1/1/2018 ............................................................. A2/A+
1,504,560
9,010,000 Western Minnesota Municipal Power Agency-- Power Supply Rev.,
63/8% due 1/1/2016++ ........................................................... Aaa/AAA
9,801,168
- -------------
TOTAL MUNICIPAL BONDS (Cost $108,901,233)-- 97.4% ..........................................................
108,171,364
VARIABLE RATE DEMAND NOTES (Cost $1,200,000)-- 1.1% ........................................................
1,200,000
OTHER ASSETS LESS LIABILITIES-- 1.5% .......................................................................
1,649,960
- -------------
NET ASSETS-- 100.0% ........................................................................................
$111,021,324
=============
</TABLE>
MISSOURI SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$2,000,000 Columbia, MO Water and Electric System Improvement Rev., 61/8% due 10/1/20120 ..... A1/AA $
2,136,120
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
2,405,575
1,500,000 Hannibal, MO Industrial Development Authority Health Facilities Rev.
(Hannibal Regional Hospital), 53/4% due 3/1/2022 ................................ Aaa/AAA
1,483,155
1,000,000 Missouri Development Finance Board Solid Waste Disposal Rev. (The Procter
& Gamble Company Paper Products Project), 5.20% due 3/15/2029* .................. Aa2/AA
896,330
130,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
73/8% due 3/1/2006 .............................................................. Aaa/AAA
131,355
305,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7% due 3/1/2006 ................................................................. Aaa/AAA
308,858
1,000,000 Missouri State Environmental Improvement & Energy Resources Authority Rev.
(State Revolving Fund Program), 6.55% due 7/1/2014 .............................. Aa1/NR
1,052,530
2,500,000 Missouri State Environmental Improvement & Energy Resources Authority Rev.
(Union Electric Company Project), 5.45% due 10/1/2028* .......................... A1/AA-
2,308,875
2,500,000 Missouri State Environmental Improvement & Energy Resources Authority --
Water Pollution Control Rev. (State Revolving Fund Program),
5.40% due 7/1/2015 .............................................................. Aa1/NR
2,445,325
2,000,000 Missouri State GOs, 55/8% due 4/1/2017 ............................................ Aaa/AAA
2,016,420
2,500,000 Missouri State Health & Educational Facilities Authority Rev. (Lester E. Cox
Medical Centers Project), 51/4% due 6/1/2015 .................................... Aaa/AAA
2,411,825
1,500,000 Missouri State Health & Educational Facilities Authority Rev. (Sisters of
Mercy Health System, St. Louis, Inc.), 61/4% due 6/1/2015 ...................... Aa1/AA+
1,565,955
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
29
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
MISSOURI SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$1,000,000 Missouri State Health & Educational Facilities Authority Rev. (Sisters of
Mercy Health System, St. Louis, Inc.), 5% due 6/1/2019 .......................... Aa1/AA+ $
891,710
2,500,000 Missouri State Health & Educational Facilities Authority Rev. (SSM Health Care),
5% due 6/1/2022 .................................................................. Aaa/AAA
2,211,950
2,400,000 Missouri State Health & Educational Facilities Authority Rev.
(St. Louis University), 5.20% due 10/1/2026 ...................................... Aaa/AAA
2,210,856
2,500,000 Missouri State Health & Educational Facilities Authority Rev.
(The Washington University), 5% due 11/15/2037 ................................... Aa1/AA+
2,140,050
820,000 Missouri State Housing Development Commission Housing Development Bonds
(Federally Insured Mortgage Loans), 6% due 10/15/2019 ............................ Aa2/AA+
829,922
2,285,000 Missouri State Housing Development Commission Single Family Mortgage Rev.
(Homeownership Loan Program), 5.90% due 9/1/2028* ................................ NR/AAA
2,284,863
1,000,000 Puerto Rico Highway & Transportation Authority Rev., 51/2% due 7/1/2026 ............ Baa1/A
956,770
1,500,000 St. Charles County, MO Certificates of Participation (Public Water Supply),
5.10% due 12/1/2025 .............................................................. Aaa/NR
1,348,245
1,500,000 St. Louis, MO Industrial Development Authority Pollution Control Rev.
(Anheuser-Busch Companies, Inc. Project), 6.65% due 5/1/2016 ..................... A1/A+
1,663,455
1,500,000 St. Louis, MO Municipal Finance Corporation City Justice Center Leasehold
Improvement Rev., 5.95% due 2/15/2016 ............................................ Aaa/AAA
1,532,790
2,400,000 Southeast Missouri Correctional Facility Lease Rev. (Missouri State Project),
53/4% due 10/15/2016++ ........................................................... Aa2/NR
2,453,352
2,000,000 Springfield, MO Waterworks Rev., 5.60% due 5/1/20230 ............................... Aa2/A+
2,089,440
2,750,000 University of Missouri Systems Facilities Rev., 51/2% due 11/1/2023 ................ Aa2/AA+
2,664,282
- ------------
TOTAL MUNICIPAL BONDS (Cost $42,856,546)-- 96.3% ...........................................................
42,440,008
VARIABLE RATE DEMAND NOTES (Cost $900,000)-- 2.0% ..........................................................
900,000
OTHER ASSETS LESS LIABILITIES-- 1.7% .......................................................................
735,226
- ------------
NET ASSETS-- 100.0% ........................................................................................
$44,075,234
============
</TABLE>
NEW YORK SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$2,500,000 Long Island Power Authority, NY Electric Systems General Rev.,
51/2% due 12/1/2029 ............................................................... Baa1/A- $
2,329,725
2,000,000 Metropolitan Transportation Authority, NY (Dedicated Tax Fund), 5% due 4/1/2023 .... Aaa/AAA
1,782,000
4,000,000 New York City Municipal Water Finance Authority, NY Water & Sewer
System Rev., 61/4% due 6/15/20200 ................................................. Aaa/AAA
4,384,560
4,000,000 New York City Municipal Water Finance Authority, NY Water & Sewer .
System Rev., 51/8% due 6/15/2030 .................................................. Aaa/AAA
3,568,520
1,340,000 New York City, NY GOs, 71/4% due 8/15/20240 ......................................... Aaa/A-
1,415,415
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
30
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
NEW YORK SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$ 5,000 New York City, NY GOs, 71/4% due 8/15/2024 .......................................... A3/A- $
5,235
1,380,000 New York City, NY GOs, 6% due 8/1/2026 .............................................. A3/A-
1,387,383
2,400,000 New York City, NY Industrial Development Agency Civic Facility Rev.
(The Nightingale-Bamford School Project), 5.85% due 1/15/2020 ..................... A3/A
2,407,320
3,500,000 New York City, NY Transitional Finance Authority (Future Tax Secured Bonds),
5% due 5/1/2026 ................................................................... Aa3/AA
3,088,225
4,000,000 New York City, NY Trust for Cultural Resources Rev. (American Museum of
Natural History), 5.65% due 4/1/2027 .............................................. Aaa/AAA
3,934,200
4,000,000 New York State Dormitory Authority Rev. (Fordham University), 53/4% due 7/1/2015 ... Aaa/AAA
4,032,960
4,000,000 New York State Dormitory Authority Rev. (Rochester Institute of Technology),
51/2% due 7/1/2018 ................................................................ Aaa/AAA
3,901,440
3,500,000 New York State Dormitory Authority Rev. (Mental Health Services Facilities
Improvement), 53/4% due 8/15/2022 ................................................. A3/A-
3,417,120
3,000,000 New York State Dormitory Authority Rev. (Skidmore College), 53/8% due 7/1/2023 ...... Aaa/AAA
2,843,820
1,500,000 New York State Dormitory Authority Rev. (Vassar Brothers Hospital),
53/8% due 7/1/2025 ................................................................ Aaa/AAA
1,411,335
2,000,000 New York State Dormitory Authority Rev. (Hospital for Special Surgery),
5% due 2/1/2028 ................................................................... Aaa/AAA
1,751,000
2,000,000 New York State Dormitory Authority Rev. (Rockefeller University), 5% due 7/1/2028 .. Aaa/AAA
1,769,640
4,000,000 New York State Energy Research & Development Authority Gas Facilities Rev.
(Brooklyn Union Gas), 51/2% due 1/1/2021 .......................................... Aaa/AAA
3,877,840
3,000,000 New York State Environmental Facilities Corporation Pollution Control Rev.
(State Water -- Revolving Fund), 6.90% due 11/15/2015 ............................. Aaa/AAA
3,322,830
3,000,000 New York State Housing Finance Agency Rev. (Phillips Village Project),
73/4% due 8/15/2017* .............................................................. A2/NR
3,238,410
3,000,000 New York State Local Government Assistance Corp., 6% due 4/1/2024 ................... A3/A+
3,021,570
2,000,000 New York State Mortgage Agency Rev. (Homeowner Mortgage), 71/2% due 4/1/2016 ....... Aa2/NR
2,042,160
1,000,000 New York State Mortgage Agency Rev. (Homeowner Mortgage), 51/2% due 10/1/2028* ..... Aa2/NR
920,120
1,000,000 New York State Mortgage Agency Rev. (Homeowner Mortgage), 5.65% due 4/1/2030* ...... Aa2/NR
948,600
2,000,000 New York State Thruway Authority General Rev., 6% due 1/1/20250 ..................... Aaa/AAA
2,159,700
2,000,000 New York State Thruway Authority (Highway and Bridge Trust Fund), 5% due 4/1/2018 .. A3/A
1,778,300
3,000,000 New York State Thruway Authority Service Contract Rev., 61/4% due 4/1/20140 ......... Baa1/NR
3,274,230
4,000,000 Onondaga County, NY Industrial Development Agency Sewer Facilities Rev.
(Bristol-Myers Squibb Co. Project), 53/4% due 3/1/2024* ........................... Aaa/AAA
3,979,000
2,250,000 Port Authority of New York and New Jersey Consolidated Rev., 61/8% due 6/1/2094 ..... A1/AA-
2,369,452
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
31
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
NEW YORK SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$2,250,000 St. Lawrence County, NY Industrial Development Agency Civic Facility Rev.
(Clarkson University Project), 51/2% due 7/1/2029 ................................. Baa1/NR $
2,105,190
1,800,000 Triborough Bridge & Tunnel Authority General Purpose Rev., 51/2% due 1/1/2030 ....... Aa3/A+
1,713,402
- ------------
TOTAL MUNICIPAL BONDS (Cost $78,410,705)-- 97.9% ...........................................................
78,180,702
VARIABLE RATE DEMAND NOTES (Cost $500,000)-- 0.6% ..........................................................
500,000
OTHER ASSETS LESS LIABILITIES-- 1.5% .......................................................................
1,184,894
- ------------
NET ASSETS-- 100.0% ........................................................................................
$79,865,596
============
</TABLE>
OHIO SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$2,250,000 Beavercreek Local School District, OH GOs (School Improvement Bonds),
5.70% due 12/1/2020 ............................................................ Aaa/AAA $
2,252,993
3,450,000 Big Walnut Local School District, OH School Building Construction &
Improvement GOs, 7.20% due 6/1/2007o ........................................... Aaa/AAA
3,684,496
4,000,000 Butler County, OH Transportation Improvement District Highway
Improvement Rev., 51/8% due 4/1/2017 .......................................... Aaa/AAA
3,752,000
4,000,000 Cleveland, OH Airport System Rev., 51/8% due 1/1/2027* ........................... Aaa/AAA
3,532,760
2,395,000 Cleveland, OH Airport System Rev., 51/8% due 1/1/2027 ............................ Aaa/AAA
2,144,675
5,000,000 Cleveland, OH Public Power System Rev., 5% due 11/15/2024 ........................ Aaa/AAA
4,480,050
4,915,000 Cleveland, OH Waterworks Improvement First Mortgage Rev., 53/4% due 1/1/20210 .... Aaa/AAA
5,259,394
85,000 Cleveland, OH Waterworks Improvement First Mortgage Rev., 53/4% due 1/1/2021 ..... Aaa/AAA
85,212
4,500,000 Columbus, OH Municipal Airport Authority Rev. (Port Columbus International
Airport Project), 6% due 1/1/2020* ............................................. Aaa/AAA
4,557,915
1,000,000 Columbus, OH Municipal Airport Authority Rev. (Port Columbus International
Airport Project), 5% due 1/1/2028 .............................................. Aaa/AAA
881,850
7,000,000 Franklin County, OH GOs, 53/8% due 12/1/2020 ..................................... Aaa/AAA
6,763,470
1,250,000 Franklin County, OH Hospital Improvement Rev. (The Children's
Hospital Project), 5.20% due 5/1/2029 .......................................... Aa3/NR
1,121,762
7,500,000 Franklin County, OH Hospital Rev. (Riverside United Methodist Hospital),
53/4% due 5/15/2020 ............................................................ Aa3/NR
7,348,725
2,500,000 Hamilton County, OH Sewer System Rev., 51/2% due 12/1/2017 ....................... Aaa/AAA
2,477,125
5,000,000 Hamilton, OH Electric System Mortgage Rev., 6% due 10/15/2023 .................... Aaa/AAA
5,053,900
4,000,000 Hudson Local School District, OH GOs, 7.10% due 12/15/2013o ...................... A1/NR
4,227,840
1,095,000 Lake County, OH Hospital Improvement Rev. (Lake Hospital System Inc.),
8% due 1/1/2013 ................................................................ Aaa/AAA
1,109,290
6,425,000 Mahoning County, OH Hospital Rev. (Forum Health Obligated Group), 5% due 11/15/2025 Aaa/AAA
5,628,172
2,000,000 Ohio Air Quality Development Authority Rev. (Cincinnati Gas & Electric
Company Project), 5.45% due 1/1/2024 ......................................... Aaa/AAA
1,899,300
6,500,000 Ohio Air Quality Development Authority Rev. (JMG Project), 63/8% due 1/1/2029* ... Aaa/AAA
6,727,695
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
32
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
OHIO SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- --------
<S> <C> <C> <C>
$4,415,000 Ohio Housing Finance Agency Residential Mortgage Rev. (Mortgage-Backed
Securities Program), 6.10% due 9/1/2028* NR/AAA $
4,396,899
2,500,000 Ohio Housing Finance Agency Residential Mortgage Rev.,
5.40% due 9/1/2029* NR/AAA
2,292,500
1,640,000 Ohio State Higher Educational Facilities Commission Rev. (Oberlin College
Project), 53/8% due 10/1/20150 NR/AA
1,722,246
1,360,000 Ohio State Higher Educational Facilities Commission Rev. (Oberlin
College Project), 53/8% due 10/1/2015 NR/AA
1,330,746
4,000,000 Ohio State Higher Educational Facilities Commission Rev. (University of
Dayton Project), 5.40% due 12/1/2022 Aaa/AAA
3,841,400
2,000,000 Ohio State Liquor Profits Rev., 6.85% due 3/1/2000 Aaa/AAA
2,025,740
4,000,000 Ohio State Public Facilities Commission Rev. (Higher Education Capital Facilities),
6.30% due 5/1/20060 Aaa/AAA
4,208,000
2,190,000 Ohio State Water Development Authority Rev. (Safe Water), 93/8% due 12/1/2010++ Aaa/AAA
2,651,630
7,500,000 Ohio State Water Development Authority Rev. (Fresh Water), 51/8% due 12/1/2023 Aaa/AAA
6,827,625
5,000,000 Ohio State Water Development Authority Rev. (Community Assistance),
5 3/8% due 12/1/2024 Aaa/AAA
4,764,550
5,000,000 Ohio State Water Development Authority Rev. (Dayton Power & Light Co.
Project), 6.40% due 8/15/2027 Aa3/AA-
5,189,750
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*
A1/A+
2,538,700
3,000,000 Ohio Turnpike Commission, OH Turnpike Rev., 51/2% due 2/15/2026 Aaa/AAA
2,934,450
2,955,000 Pickerington Local School District, OH School Building Construction GOs,
8% due 12/1/2005++ Aaa/AAA
3,336,165
4,000,000 Puerto Rico Highway & Transportation Authority Rev., 5 1/2% due 7/1/2036 Baa1/A
3,818,000
1,000,000 Puerto Rico Telephone Authority Rev., 51/2% due 1/1/20220 A/AAA
1,055,930
2,500,000 Twinsburg City School District, OH School Improvement GOs,
5.90% due 12/1/2021 Aaa/AAA
2,533,300
3,000,000 University of Toledo, OH General Receipts Bonds, 7.10% due 6/1/20100 Aaa/AAA
3,125,730
2,000,000 Worthington City School District, OH School Building Construction &
Improvement GOs, 83/4% due 12/1/2002 Aaa/AAA
2,055,880
- ------------
TOTAL MUNICIPAL BONDS (Cost $133,630,999)-- 98.0%
133,637,865
VARIABLE RATE DEMAND NOTES (Cost $600,000)-- 0.4%
600,000
OTHER ASSETS LESS LIABILITIES-- 1.6%
2,140,861
- ------------
NET ASSETS-- 100.0%
$136,378,726
============
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
33
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
OREGON SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- ------
<S> <C> <C> <C>
$2,000,000 Benton County, OR Hospital Facilities Authority Rev. (Samaritan Health
Services Project), 51/8% due 10/1/2028 .......................................... NR/A
$1,743,600
2,000,000 Chemeketa, OR Community College District GOs, 5.95% due 6/1/20160 ................. Aaa/AAA
2,138,020
1,500,000 Clackamas County, OR Hospital Facility Authority
Rev. (Legacy Health System), 5 1/4% due 2/15/2018 ............................... NR/AA
1,397,775
1,000,000 Clackamas & Washington Counties, OR GOs (West Linn -- Wilsonville
School District), 5% due 6/1/2017 ............................................... Aaa/AAA
928,920
1,395,000 Eugene, OR Trojan Nuclear Project Rev., 5.90% due 9/1/2009 Aa1/AA-
1,422,900
1,250,000 Multnomah County, OR Education Facility Rev. (University of Portland),
5% due 4/1/2018 ................................................................. Aaa/AAA
1,146,737
1,750,000 Multnomah County School District, OR GOs, 51/2% due 6/1/2015 A1/A+
1,744,400
2,000,000 North Clackamas Parks & Recreation District -- Clackamas
County, OR Rev. (Recreational Facilities), 5.70% due 4/1/2013 ................... NR/A-
2,019,720
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-
1,832,120
750,000 Ontario, OR Hospital Facility Authority Health Facilities Rev. Catholic Health
Corporation (Dominican Sisters of Ontario Inc., d.b.a. Holy Rosary Medical
Center Project), 6.10% due 11/15/2017 ........................................... Aa2/AA
767,115
2,500,000 Oregon Department of Administrative Services Certificates of Participation,
5.80% due 5/1/20240 ............................................................. Aaa/AAA
2,678,025
2,250,000 Oregon Department of Administrative Services Certificates of Participation,
5% due 5/1/2024 ................................................................. Aaa/AAA
2,007,540
1,000,000 Oregon Department of Transportation Regional Light Rail Extension Rev.,
6.20% due 6/1/2008 .............................................................. Aaa/AAA
1,077,210
2,000,000 Oregon Health, Housing, Educational & Cultural Facilities Authority Rev.
(Linfield College Project), 51/4% due 10/1/2023 ................................. Baa1/NR
1,808,140
2,500,000 Oregon Health, Housing, Educational & Cultural Facilities Authority Rev.
(Reed College Project), 53/8% due 7/1/2025 ...................................... NR/AA-
2,361,775
1,250,000 Oregon Health Sciences University Rev., 51/4% due 7/1/2028 ........................ Aaa/AAA
1,139,650
2,000,000 Oregon Housing & Community Services Department Housing & Finance Rev.
(Assisted or Insured Multi-Unit Program), 53/4% due 7/1/2012 .................... Aa2/A+
2,024,180
840,000 Oregon Housing & Community Services Department Mortgage Rev.
(Single Family Mortgage Program), 5.65% due 7/1/2019* ........................... Aa2/NR
804,283
1,000,000 Oregon Housing & Community Services Department Mortgage Rev.
(Single Family Mortgage Program), 6% due 7/1/2027* .............................. Aa2/NR
1,003,260
500,000 Oregon Housing & Community Services Department Mortgage Rev.
(Single Family Mortgage Program), 53/4% due 7/1/2029* ........................... Aa2/NR
482,700
500,000 Oregon State GOs (Veterans' Welfare), 9% due 10/1/2006 ............................ Aa2/AA
625,000
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
34
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
OREGON SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- ------
<S> <C> <C> <C>
$1,260,000 Oregon State GOs (Veterans' Welfare), 57/8% due 10/1/2018 ....................... Aa2/AA
$1,266,779
250,000 Oregon State GOs (Elderly & Disabled Housing), 7.20% due 8/1/2021 ............... Aa2/AA
260,210
1,000,000 Oregon State GOs (Elderly & Disabled Housing), 6.60% due 8/1/2022* .............. Aa2/AA
1,055,580
950,000 Port of Portland, OR International Airport Rev., 7.10% due 7/1/2021*0 ........... Aaa/AAA
1,096,614
50,000 Port of Portland, OR International Airport Rev., 7.10% due 7/1/2021*0 ........... Aaa/AAA
52,912
500,000 Port of Portland, OR International Airport Rev., 53/4% due 7/1/2025* ............ Aaa/AAA
492,030
1,500,000 Port of Portland, OR International Airport Rev., 55/8% due 7/1/2026* ............ Aaa/AAA
1,452,525
2,000,000 Portland, OR GOs, 5.60% due 6/1/2014 ............................................ Aa2/NR
2,018,420
1,250,000 Portland, OR Hospital Facilities Authority Rev. (Legacy Health System),
6 5/8% due 5/1/2011 ........................................................... Aaa/AAA
1,313,462
2,500,000 Portland, OR Sewer System Rev., 5% due 6/1/2015 ................................. Aaa/AAA
2,354,625
1,000,000 Puerto Rico Highway & Transportation Authority Rev., 51/2% due
7/1/2026 ...................................................................... Baa1/A
956,770
630,000 Puerto Rico Housing Finance Corp. Single Family Mortgage Rev.),
6.85% due 10/15/2023 .......................................................... Aaa/AAA
656,542
1,000,000 Puerto Rico Ports Authority Rev., 7% due 7/1/2014* .............................. Aaa/AAA
1,057,040
2,000,000 Salem, OR Hospital Facility Authority Rev. (Salem Hospital), 5% due 8/15/2018 ... NR/AA-
1,800,800
2,600,000 Salem, OR Pedestrian Safety Improvements GOs, 53/4% due 5/1/20110 ............... Aaa/AAA
2,748,460
1,110,000 Tualatin Development Commission, OR (Urban Renewal & Redevelopment),
73/8% due 1/1/2007 ............................................................ Baa1/NR
1,118,203
500,000 Virgin Islands Public Finance Authority Rev., 51/2% due 10/1/2022 ............... NR/BBB-
468,435
2,500,000 Washington and Multnomah Counties, OR (Beaverton School District),
5% due 8/1/2017 ............................................................... Aa2/AA-
2,308,100
1,500,000 Washington County, OR Unified Sewerage Agency Rev., 53/4% due 10/1/2011 ......... Aaa/AAA
1,577,085
- -----------
TOTAL MUNICIPAL BONDS (Cost $55,157,115)-- 97.4% ...........................................................
55,207,662
VARIABLE RATE DEMAND NOTES (Cost $500,000)-- 0.9% ..........................................................
500,000
OTHER ASSETS LESS LIABILITIES-- 1.7% .......................................................................
996,119
- -----------
NET ASSETS-- 100.0% ........................................................................................
$56,703,781
===========
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
35
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 1999
SOUTH CAROLINA SERIES
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- ------
<S> <C> <C> <C>
$3,000,000 Berkeley County, SC Water & Sewer Rev., 5.55% due 6/1/2016 ..................... Aaa/AAA
$2,958,060
745,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 2/1/2004 ........................................................... A1/A
767,223
770,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 8/1/2004 ........................................................... A1/A
792,969
800,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.20% due 2/1/2005 ........................................................... A1/A
823,856
2,500,000 Charleston, SC Waterworks & Sewer System Rev., 6% due 1/1/2012 ................. A1/AA-
2,580,000
5,000,000 Coastal Carolina University, SC Improvement Rev., 5.30% due 6/1/2026 ........... Aaa/NR
4,631,750
6,000,000 Darlington County, SC Industrial Development Rev. (Nucor Corporation Project),
5 3/4% due 8/1/2023* ......................................................... A1/AA-
5,915,280
3,500,000 Darlington County, SC Industrial Development Rev. (Sonoco Products
Company Project), 6% due 4/1/2026* ........................................... A2/A
3,502,310
2,500,000 Fairfield County, SC Pollution Control Rev. (South Carolina Electric & Gas
Company), 6 1/2% due 9/1/2014 ................................................ A1/A+
2,672,575
1,000,000 Georgetown County, SC Pollution Control Facilities Rev. (International Paper
Company), 7 3/8% due 6/15/2005 ............................................... A3/BBB+
1,011,540
3,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 51/2% due 5/1/2016 .... NR/AA
2,889,330
2,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 51/4% due 5/1/2023 .... Aa3/AA
1,779,620
3,000,000 Greenwood County, SC Hospital Facilities Rev. (Self Memorial Hospital),
5 7/8% due 10/1/2017 ......................................................... Aaa/AAA
3,008,250
1,600,000 Lancaster County, SC School District GOs, 6.60% due 7/1/20120 .................. Aaa/AAA
1,723,776
5,000,000 Lexington County, SC Hospital Rev. (Health Services District, Inc.),
5 1/8% due 11/1/2026 ......................................................... Aaa/AAA
4,417,600
1,000,000 Lexington County School District, SC Certificates of Participation
(Red Bank/White Knoll Elementary Project), 7.10% due 9/1/2011o ............... Aaa/AAA
1,072,130
1,000,000 Medical University South Carolina Hospital Facilities Rev., 5.60% due 7/1/2011 . Aaa/AAA
1,037,430
3,000,000 Mount Pleasant, SC Water & Sewer Rev., 6% due 12/1/2020 ........................ Aaa/AAA
3,032,850
1,500,000 North Charleston Sewer District, SC Rev., 63/8% due 7/1/2012 ................... Aaa/AAA
1,656,765
5,000,000 Oconee County, SC Pollution Control Rev. (Duke Power Co. Project),
5.80% due 4/1/2014 ........................................................... Aa2/AA-
5,042,100
1,250,000 Piedmont Municipal Power Agency, SC Electric Rev., 61/4% due 1/1/2021 .......... Aaa/AAA
1,335,550
1,000,000 Puerto Rico Highway & Transportation Authority Rev., 51/2% due 7/1/2036 ........ Baa1/A
954,500
2,000,000 Puerto Rico Highway & Transportation Authority Rev., 5% due 7/1/2038 ........... Baa1/A
1,732,180
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
o Pre-refunded security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
36
<PAGE>
SOUTH CAROLINA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+
MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P
VALUE
-------- --------------- -----------
- ------
<S> <C> <C> <C>
$2,500,000 Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control
Facilities Financing Authority Higher Education Rev. (Inter-American
University of Puerto Rico Project), 5% due 10/1/2022 ......................... Aaa/AAA
$2,268,350
2,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp
Corp. Project), 7.45% due 4/1/2021* .......................................... A3/BBB+
2,114,200
1,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp
Corp. Project), 7 1/8% due 9/1/2021* ......................................... A3/BBB+
1,056,170
5,000,000 Rock Hill, SC Combined Utilities System Rev., 5% due 1/1/2020 .................. Aaa/AAA
4,510,000
3,000,000 South Carolina Job--Economic Development Authority Hospital Rev.
(Anderson Area Medical Center, Inc.), 5 1/4% due 2/1/2018 .................... NR/AA-
2,779,860
2,000,000 South Carolina Jobs--Economic Development Authority Hospital Rev.
(Georgetown Memorial Hospital), 5% due 11/1/2029 ............................. Aaa/NR
1,722,860
5,000,000 South Carolina Public Service Authority Rev., 57/8% due 1/1/2023 ............... Aaa/AAA
5,001,100
500,000 South Carolina State Housing Finance & Development Authority Rev.
(Homeownership Mortgage), 7.55% due 7/1/2011 ................................. Aa2/AA
510,610
2,055,000 South Carolina State Housing Finance & Development Authority Rental
Housing Rev. (North Bluff Project), 5.60% due 7/1/2016 ....................... NR/AA
2,011,126
1,000,000 South Carolina State Housing Finance & Development Authority
Rev. (Multi-Family Development), 6 7/8% due 11/15/2023 ....................... Aaa/NR
1,044,940
4,640,000 South Carolina State Housing Finance & Development Authority Mortgage Rev.,
5.40% due 7/1/2029* .......................................................... Aaa/NR
4,213,816
5,000,000 South Carolina State Ports Authority Rev., 5.30% due 7/1/2026* ................. Aaa/AAA
4,538,600
5,000,000 South Carolina Transportation Infrastructure Bank Rev., 53/8% due 10/1/2024 .... Aaa/NR
4,727,600
2,500,000 Spartanburg, SC Water System Rev., 5% due 6/1/2027 ............................. Aaa/AAA
2,197,825
3,000,000 University of South Carolina Rev., 53/4% due 6/1/2026 .......................... Aaa/AAA
2,951,490
- -----------
TOTAL MUNICIPAL BONDS (Cost $98,132,261)-- 97.9%
96,986,191
VARIABLE RATE DEMAND NOTES (Cost $400,000)-- 0.4%
400,000
OTHER ASSETS LESS LIABILITIES-- 1.7%
1,678,094
- -----------
NET ASSETS-- 100.0%
$99,064,285
===========
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
37
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
NATIONAL COLORADO GEORGIA
LOUISIANA MARYLAND
SERIES SERIES SERIES
SERIES SERIES
------------ ------------ ------------ ------------
- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (See
portfolios of investments):
Long-term holdings..................... $96,351,833 $44,704,889 $44,419,672 $50,767,782
$50,811,750
Short-term holdings.................... 900,000 100,000 --
800,000 700,000
----------- ----------- ----------- -----------
- -----------
97,251,833 44,804,889 44,419,672 51,567,782
51,511,750
Cash .................................... 77,686 77,601 99,596
59,574 106,165
Interest receivable...................... 1,480,103 872,566 835,308
890,119 904,060
Expenses prepaid to shareholder
service agent ......................... 16,018 6,048 5,670
7,034 7,182
Receivable for Capital Stock sold........ 12,230 -- 5,607
57,517 --
Receivable for securities sold........... -- -- --
100,000 15,040
Other.................................... 9,046 550 592
631 637
----------- ----------- ----------- -----------
- -----------
TOTAL ASSETS............................. 98,846,916 45,761,654 45,366,445 52,682,657
52,544,834
----------- ----------- ----------- -----------
- -----------
LIABILITIES:
Dividends payable........................ 148,680 66,918 65,854
79,075 78,425
Payable for Capital Stock
repurchased ........................... 83,420 6,633 46,648
82,325 17,123
Payable for securities purchased......... -- -- --
- -- --
Accrued expenses and other............... 124,380 61,665 68,038
70,443 76,740
----------- ----------- ----------- -----------
- -----------
TOTAL LIABILITIES........................ 356,480 135,216 180,540
231,843 172,288
----------- ----------- ----------- -----------
- -----------
NET ASSETS............................... $98,490,436 $45,626,438 $45,185,905 $52,450,814
$52,372,546
=========== =========== =========== ===========
===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A................................ $ 11,764 $ 6,292 $ 5,510 $
6,603 $ 6,355
Class C................................ 15 9 23
- -- 9
Class D................................ 1,052 129 298
116 356
Additional paid-in capital............... 100,603,889 45,964,884 44,142,514 52,131,570
51,362,285
Undistributed/accumulated net
realized gain (loss) (1,347,292) 314,611 879,386
298,056 20,265
Net unrealized appreciation
(depreciation) of investments (778,992) (659,487) 158,174
14,469 983,276
----------- ----------- ----------- -----------
- -----------
Net Assets............................... $98,490,436 $45,626,438 $45,185,905 $52,450,814
$52,372,546
=========== =========== =========== ===========
===========
NET ASSETS:
Class A................................ $90,295,874 $44,649,010 $42,692,018 $51,543,103
$49,522,785
Class C................................ $ 115,095 $ 60,163 $ 175,613 $ 8
$ 74,666
Class D................................ $ 8,079,467 $ 917,265 $ 2,318,274 $ 907,703
$ 2,775,095
SHARES OF CAPITAL STOCK
OUTSTANDING ($.001 par value):
Class A................................ 11,763,732 6,292,081 5,510,158
6,602,610 6,354,635
Class C................................ 14,996 8,485 22,619
1 9,573
Class D................................ 1,052,626 129,412 298,565
116,303 355,819
NET ASSET VALUE PER SHARE:
CLASS A................................ $7.68 $7.10 $7.75
$7.81 $7.79
CLASS C................................ $7.68 $7.09 $7.76
$7.80 $7.80
CLASS D................................ $7.68 $7.09 $7.76
$7.80 $7.80
</TABLE>
- ----------
See Notes to Financial Statements.
38
<PAGE>
<TABLE>
<CAPTION>
MASSACHUSETTS MICHIGAN MINNESOTA
MISSOURI
SERIES SERIES SERIES
SERIES
------------ ------------ ------------
- -----------
<S> <C> <C> <C>
<C>
ASSETS:
Investments, at value (See
portfolios of investments):
Long-term holdings....................... $94,412,784 $125,030,911 $108,171,364
$42,440,008
Short-term holdings...................... 5,100,000 1,500,000 1,200,000
900,000
----------- ------------ ------------
- -----------
99,512,784 126,530,911 109,371,364
43,340,008
Cash ...................................... 137,487 129,361 88,212
146,038
Interest receivable........................ 1,485,087 2,397,470 1,843,294
862,910
Expenses prepaid to shareholder
service agent ........................... 13,231 16,753 15,877
6,048
Receivable for Capital Stock sold.......... 41,352 953 74,291
10,711
Receivable for securities sold............. 86,740 -- --
- --
Other...................................... 1,307 1,580 1,363
545
----------- ------------ ------------
- -----------
TOTAL ASSETS............................... 101,277,988 129,077,028 111,394,401
44,366,260
----------- ------------ ------------
- -----------
LIABILITIES:
Dividends payable.......................... 139,211 191,115 164,837
63,086
Payable for Capital Stock
repurchased ............................. 87,133 981,856 77,290
165,101
Payable for securities purchased........... 4,839,869 -- --
- --
Accrued expenses and other................. 121,211 155,727 130,950
62,839
----------- ------------ ------------
- -----------
TOTAL LIABILITIES.......................... 5,187,424 1,328,698 373,077
291,026
----------- ------------ ------------
- -----------
NET ASSETS................................. $96,090,564 $127,748,330 $111,021,324
$44,075,234
=========== ============ ============
===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A.................................. $ 12,444 $ 15,613 $ 14,827 $
5,960
Class C.................................. 31 15 --
3
Class D.................................. 393 258 252
85
Additional paid-in capital................. 96,975,267 127,215,076 111,141,369
44,443,642
Undistributed/accumulated net
realized gain (loss) 541,088 481,659 594,745
42,082
Net unrealized appreciation
(depreciation) of investments (1,438,659) 35,709 (729,869)
(416,538)
----------- ------------ ------------
- -----------
Net Assets................................. $96,090,564 $127,748,330 $111,021,324
$44,075,234
=========== ============ ============
===========
NET ASSETS:
Class A.................................. $92,929,094 $125,559,543 $109,165,501
$43,436,867
Class C.................................. $ 228,113 $ 114,458 $ 7 $
21,241
Class D.................................. $ 2,933,357 $ 2,074,329 $ 1,855,816 $
617,126
SHARES OF CAPITAL STOCK
OUTSTANDING ($.001 par value):
Class A.................................. 12,444,174 15,613,059 14,826,476
5,960,302
Class C.................................. 30,554 14,249 1
2,914
Class D.................................. 392,913 258,231 252,040
84,672
NET ASSET VALUE PER SHARE:
CLASS A.................................. $7.47 $8.04 $7.36
$7.29
CLASS C.................................. $7.47 $8.03 $7.36
$7.29
CLASS D.................................. $7.47 $8.03 $7.36
$7.29
<CAPTION>
NEW YORK OHIO OREGON SOUTH
CAROLINA
SERIES SERIES SERIES
SERIES
----------- ------------ -----------
- --------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (See
portfolios of investments):
Long-term holdings....................... $78,180,702 $133,637,865 $55,207,662
$96,986,191
Short-term holdings...................... 500,000 600,000 500,000
400,000
----------- ------------ -----------
- -----------
78,680,702 134,237,865 55,707,662
97,386,191
Cash ...................................... 130,687 89,261 71,713
144,015
Interest receivable........................ 1,375,340 2,407,651 1,048,750
1,808,965
Expenses prepaid to shareholder
service agent ........................... 10,207 17,767 7,561
13,231
Receivable for Capital Stock sold.......... 2,590 51,418 4,764
23,946
Receivable for securities sold............. -- -- 140,353
Other...................................... 990 1,693
688 1,238
----------- ------------ -----------
- -----------
TOTAL ASSETS............................... 80,200,516 136,805,655 56,981,491
99,377,586
----------- ------------ -----------
- -----------
LIABILITIES:
Dividends payable.......................... 118,517 206,237 80,916
147,603
Payable for Capital Stock
repurchased ............................. 112,851 69,428 123,324
46,032
Payable for securities purchased........... -- --
- -- --
Accrued expenses and other................. 103,552 151,264 73,470
119,666
----------- ------------ -----------
- -----------
TOTAL LIABILITIES.......................... 334,920 426,929 277,710
313,301
----------- ------------ -----------
- -----------
NET ASSETS................................. $79,865,596 $136,378,726 $56,703,781
$99,064,285
=========== ============ ===========
===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A.................................. $ 9,984 $ 17,681 $ 7,281 $
12,104
Class C.................................. 24 2
- -- 44
Class D.................................. 369 173
298 775
Additional paid-in capital................. 80,123,675 136,080,439 56,265,935
99,383,656
Undistributed/accumulated net
realized gain (loss) (38,453) 273,565 379,720
813,776
Net unrealized appreciation
(depreciation) of investments (230,003) 6,866 50,547
(1,146,070)
----------- ------------ -----------
- -----------
Net Assets................................. $79,865,596 $136,378,726 $56,703,781
$99,064,285
=========== ============ ===========
===========
NET ASSETS:
Class A.................................. $76,832,420 $135,034,266 $54,472,877
$92,793,466
Class C.................................. $ 189,227 $ 17,354 $ 8 $
335,045
Class D.................................. $ 2,843,949 $ 1,327,106 $ 2,230,896 $
5,935,774
SHARES OF CAPITAL STOCK
OUTSTANDING ($.001 par value):
Class A.................................. 9,983,619 17,680,543 7,280,478
12,103,778
Class C.................................. 24,565 2,261 1
43,745
Class D.................................. 369,232 172,900 298,402
775,003
NET ASSET VALUE PER SHARE:
CLASS A.................................. $7.70 $7.64
$7.48 $7.67
CLASS C.................................. $7.70 $7.68
$7.48 $7.66
CLASS D.................................. $7.70 $7.68
$7.48 $7.66
</TABLE>
39
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
NATIONAL COLORADO GEORGIA
LOUISIANA MARYLAND
SERIES SERIES SERIES
SERIES SERIES
----------- ----------- -----------
- ----------- -----------
<S> <C> <C> <C>
<C> <C>
INVESTMENT INCOME:
Interest.......................................... $ 5,963,680 $ 2,594,201 $ 2,700,531 $
3,099,085 $ 3,167,637
----------- ----------- -----------
- ----------- -----------
EXPENSES:
Management fees................................... 527,074 236,902 247,712
276,780 280,990
Distribution and service fees..................... 167,666 54,836 75,460
62,013 85,666
Shareholder account services...................... 138,107 64,517 71,553
72,335 80,702
Auditing and legal fees........................... 31,737 26,562 20,612
27,761 25,316
Registration...................................... 29,474 12,083 11,553
8,536 15,550
Custody and related services...................... 18,973 11,897 9,305
9,067 12,824
Shareholder reports and communications............ 12,045 5,098 7,481
7,172 7,179
Directors' fees and expenses...................... 9,028 7,090 7,031
7,347 7,361
Miscellaneous..................................... 4,689 2,941 3,061
3,166 3,221
----------- ----------- -----------
- ----------- -----------
TOTAL EXPENSES.................................... 938,793 421,926 453,768
474,177 518,809
----------- ----------- -----------
- ----------- -----------
NET INVESTMENT INCOME............................. 5,024,887 2,172,275 2,246,763
2,624,908 2,648,828
----------- ----------- -----------
- ----------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments........... 211,923 430,454 884,473
303,123 30,812
Net change in unrealized
appreciation of investments (8,530,095) (3,920,316) (4,441,923)
(4,254,499) (3,439,773)
----------- ----------- -----------
- ----------- -----------
NET LOSS ON INVESTMENTS........................... (8,318,172) (3,489,862) (3,557,450)
(3,951,376) (3,408,961)
----------- ----------- -----------
- ----------- -----------
DECREASE IN NET ASSETS FROM OPERATIONS............ $(3,293,285) $(1,317,587) $(1,310,687)
$(1,326,468) $ (760,133)
=========== =========== ===========
=========== ===========
</TABLE>
- ----------
See Notes to Financial Statements.
40
<PAGE>
<TABLE>
<CAPTION>
MASSACHUSETTS MICHIGAN MINNESOTA MISSOURI
SERIES SERIES SERIES SERIES
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest.................................. $ 5,682,127 $ 7,724,930 $ 6,626,483 $ 2,601,285
----------- ----------- ----------- -----------
EXPENSES:
Management fees........................... 527,272 696,613 596,977 242,203
Distribution and service fees............. 129,426 165,574 140,152 52,103
Shareholder account services.............. 136,008 182,464 170,276 70,841
Auditing and legal fees................... 34,033 38,939 43,018 24,454
Registration.............................. 16,123 21,254 17,758 11,577
Custody and related services.............. 27,374 28,645 28,666 11,821
Shareholder reports and communications.... 14,444 17,965 10,452 5,643
Directors' fees and expenses.............. 8,653 9,147 8,879 7,118
Miscellaneous............................. 4,802 5,893 5,347 3,086
----------- ----------- ----------- -----------
TOTAL EXPENSES............................ 898,135 1,166,494 1,021,525 428,846
----------- ----------- ----------- -----------
NET INVESTMENT INCOME..................... 4,783,992 6,558,436 5,604,958 2,172,439
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: 836,791 616,641 607,305 48,875
Net realized gain (loss) on investments...
Net change in unrealized (10,688,280) (10,841,083) (8,515,969) (3,922,017)
appreciation of investments ----------- ----------- ----------- -----------
(9,851,489) (10,224,442) (7,908,664) (3,873,142)
NET LOSS ON INVESTMENTS................... ----------- ----------- ----------- -----------
$(5,067,497) $(3,666,006) $(2,303,706) $(1,700,703)
DECREASE IN NET ASSETS FROM OPERATIONS.... =========== =========== =========== ===========
<CAPTION>
NEW YORK OHIO OREGON SOUTH CAROLINA
SERIES SERIES SERIES SERIES
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest.................................. $ 4,666,126 $ 8,269,587 $ 3,216,326 $ 5,944,698
----------- ----------- ----------- -----------
EXPENSES:
Management fees........................... 428,752 740,911 299,155 542,489
Distribution and service fees............. 114,966 162,097 84,456 165,063
Shareholder account services.............. 105,556 191,068 82,032 145,959
Auditing and legal fees................... 27,899 43,949 33,035 33,604
Registration.............................. 14,964 21,199 11,508 14,928
Custody and related services.............. 8,280 22,362 12,281 24,859
Shareholder reports and communications.... 11,028 10,679 5,110 12,403
Directors' fees and expenses.............. 8,294 9,373 7,239 7,967
Miscellaneous............................. 4,052 6,142 3,323 4,780
----------- ----------- ----------- -----------
TOTAL EXPENSES............................ 723,791 1,207,780 538,139 952,052
----------- ----------- ----------- -----------
NET INVESTMENT INCOME..................... 3,942,335 7,061,807 2,678,187 4,992,646
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: (30,466) 297,271 383,853 969,149
Net realized gain (loss) on investments...
Net change in unrealized (7,250,070) (11,188,018) (4,304,261) (9,667,415)
appreciation of investments ----------- ----------- ----------- -----------
(7,280,536) (10,890,747) (3,920,408) (8,698,266)
NET LOSS ON INVESTMENTS................... ----------- ----------- ----------- -----------
$(3,338,201) $(3,828,940) $(1,242,221) $(3,705,620)
DECREASE IN NET ASSETS FROM OPERATIONS.... =========== =========== =========== ===========
</TABLE>
41
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
NATIONAL SERIES COLORADO SERIES
GEORGIA SERIES
- ----------------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
SEPTEMBER 30,
- -----------------------------------------------------------------------------------------
1999 1998 1999 1998
1999 1998
-------------- -------------- ------------- ------------
- -------------- -----------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................... $ 5,024,887 $ 4,996,585 $ 2,172,275 $ 2,274,183 $ 2,246,763
$ 2,287,170
Net realized gain on investments......... 211,923 1,375,240 430,454 1,217,468
884,473 355,347
NET CHANGE IN UNREALIZED
APPRECIATION OF INVESTMENTS ........... (8,530,095) 2,557,155 (3,920,316) 133,704
(4,441,923) 1,483,755
------------ ------------- ------------ ------------ ------------
- ------------
Increase (Decrease) in Net Assets
from Operations (3,293,285) 8,928,980 (1,317,587) 3,625,355
(1,310,687) 4,126,272
------------ ------------- ------------ ------------ ------------
- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A................................ (4,766,686) (4,774,389) (2,141,971) (2,263,810)
(2,145,554) (2,185,497)
Class C................................ (996) -- (638) --
(1,879) --
Class D................................ (257,205) (222,196) (29,666) (10,373)
(99,330) (101,673)
Net realized gain on investments:
Class A................................ -- -- -- --
(256,931) (187,062)
Class C................................ -- -- -- --
- -- --
Class D................................ -- -- -- --
(15,052) (10,787)
------------ ------------- ------------ ------------ ------------
- ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS (5,024,887) (4,996,585) (2,172,275) (2,274,183)
(2,518,746) (2,485,019)
------------ ------------- ------------ ------------ ------------
- ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares........ 5,374,193 8,028,491 3,938,964 1,430,445
3,266,648 2,957,644
Investment of dividends.................. 2,813,446 2,791,404 1,250,466 1,272,671
1,454,489 1,509,764
Exchanged from associated Funds.......... 22,062,389 24,012,099 7,143,293 2,248,315
945,166 314,227
Shares issued in payment of
gain distributions ................... -- -- -- --
213,097 154,849
------------ ------------- ------------ ------------ ------------
- ------------
Total.................................... 30,250,028 34,831,994 12,332,723 4,951,431
5,879,400 4,936,484
------------ ------------- ------------ ------------ ------------
- ------------
Cost of shares repurchased............... (11,785,860) (10,630,348) (4,176,969) (7,648,076)
(7,410,411) (7,514,108)
Exchanged into associated Funds.......... (20,956,923) (18,592,948) (4,966,613) (2,745,460)
(686,937) (1,084,357)
------------ ------------- ------------ ------------ ------------
- ------------
Total.................................... (32,742,783) (29,223,296) (9,143,582) (10,393,536)
(8,097,348) (8,598,465)
------------ ------------- ------------ ------------ ------------
- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS....... (2,492,755) 5,608,698 3,189,141 (5,442,105)
(2,217,948) (3,661,981)
------------ ------------- ------------ ------------ ------------
- ------------
INCREASE (DECREASE) IN NET ASSETS........ (10,810,927) 9,541,093 (300,721) (4,090,933)
(6,047,381) (2,020,728)
NET ASSETS:
Beginning of year........................ 109,301,363 99,760,270 45,927,159 50,018,092
51,233,286 53,254,014
------------ ------------- ------------ ------------ ------------
- ------------
END OF YEAR.............................. $98,490,436 $109,301,363 $45,626,438 $45,927,159
$45,185,905 $51,233,286
============ ============= ============ ============ ============
============
</TABLE>
- ----------------
See Notes to Financial Statements.
42
<PAGE>
<TABLE>
<CAPTION>
LOUISIANA SERIES MARYLAND SERIES
-------------------------- --------------------------
YEAR Ended SEPTEMBER 30, YEAR Ended SEPTEMBER 30,
-------------------------- --------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income ................ $ 2,624,908 $ 2,755,599 $ 2,648,828 $ 2,639,840
Net realized gain on investments ..... 303,123 750,930 30,812 183,975
Net change in unrealized
appreciation of investments ....... (4,254,499) 904,770 (3,439,773) 1,341,557
----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ................... (1,326,468) 4,411,299 (760,133) 4,165,372
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ............................ (2,592,830) (2,732,585) (2,529,563) (2,539,788)
Class C ............................ -- -- (491) --
Class D ............................ (32,078) (23,014) (118,774) (100,052)
Net realized gain on investments:
Class A ............................ (742,225) (95,055) (184,646) (307,098)
Class C ............................ -- -- -- --
Class D ............................ (11,055) (862) (10,939) (11,949)
----------- ----------- ----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS ...................... (3,378,188) (2,851,516) (2,844,413) (2,958,887)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .... 2,639,130 1,868,262 2,360,545 5,140,080
Investment of dividends .............. 1,282,591 1,383,759 1,604,067 1,575,152
Exchanged from associated Funds ...... 79,357 74,752 302,980 311,127
Shares issued in payment of
gain distributions ................ 498,800 65,667 148,824 236,682
----------- ----------- ----------- -----------
Total ................................ 4,936,484 3,392,440 4,416,416 7,263,041
----------- ----------- ----------- -----------
Cost of shares repurchased ........... (4,264,493) (4,248,647) (6,166,502) (4,776,521)
Exchanged into associated Funds ...... (224,567) (266,535) (291,435) (285,947)
----------- ----------- ----------- -----------
Total ................................ (4,489,060) (4,515,182) (6,457,937) (5,062,468)
----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS ... 10,818 (1,122,742) (2,041,521) 2,200,573
----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS .... (4,693,838) 437,041 (5,646,067) 3,407,058
NET ASSETS:
Beginning of year .................... 57,144,652 56,707,611 58,018,613 54,611,555
----------- ----------- ----------- -----------
END OF YEAR .......................... $52,450,814 $57,144,652 $52,372,546 $58,018,613
=========== =========== =========== ===========
<CAPTION>
MASSACHUSETTS SERIES MICHIGAN SERIES
--------------------------- ----------------------------
YEAR Ended SEPTEMBER 30, YEAR Ended SEPTEMBER 30,
--------------------------- ----------------------------
1999 1998 1999 1998
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income ................ $ 4,783,992 $ 5,151,550 $ 6,558,436 $ 6,920,269
Net realized gain on investments ..... 836,791 360,413 616,641 2,466,720
Net change in unrealized
appreciation of investments ....... (10,688,280) 4,686,395 (10,841,083) 2,641,464
----------- ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ................... (5,067,497) 10,198,358 (3,666,006) 12,028,453
----------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ............................ (4,692,195) (5,099,272) (6,466,582) (6,853,272)
Class C ............................ (1,124) -- (678) --
Class D ............................ (90,673) (52,278) (91,176) (66,997)
Net realized gain on investments:
Class A ............................ (643,189) (1,288,484) (2,565,404) (1,235,329)
Class C ............................ -- -- -- --
Class D ............................ (9,341) (14,760) (38,013) (15,651)
----------- ------------ ------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS ...................... (5,436,522) (6,454,794) (9,161,853) (8,171,249)
----------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .... 4,563,932 2,818,298 5,706,815 5,106,070
Investment of dividends .............. 2,809,223 3,089,407 3,963,684 4,240,543
Exchanged from associated Funds ...... 22,685,568 10,975,607 835,726 3,035,133
Shares issued in payment of
gain distributions ................ 465,453 958,304 1,930,148 925,258
----------- ------------ ------------ ------------
TOTAL ................................ 30,524,176 17,841,616 12,436,373 13,307,004
----------- ------------ ------------ ------------
Cost of shares repurchased ........... (10,234,861) (10,348,233) (16,216,494) (13,011,091)
Exchanged into associated Funds ...... (24,490,848) (11,696,486) (1,646,007) (3,366,149)
----------- ------------ ------------ ------------
Total ................................ (34,725,709) (22,044,719) (17,862,501) (16,377,240)
----------- ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS ... (4,201,533) (4,203,103) (5,426,128) (3,070,236)
----------- ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS .... (14,705,552) (459,539) (18,253,987) 786,968
NET ASSETS:
Beginning of year .................... 110,796,116 111,255,655 146,002,317 145,215,349
----------- ------------ ------------ ------------
END OF YEAR .......................... $96,090,564 $110,796,116 $127,748,330 $146,002,317
=========== ============ ============ ============
</TABLE>
43
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MINNESOTA SERIES MISSOURI SERIES NEW
YORK SERIES
---------------------------- ---------------------------
- ---------------------------
YEAR Ended SEPTEMBER 30, YEAR Ended SEPTEMBER 30, YEAR Ended
SEPTEMBER 30,
---------------------------- ---------------------------
- ---------------------------
1999 1998 1999 1998
1999 1998
------------ ------------ ----------- -----------
- ----------- -----------
<S> <C> <C> <C> <C>
<C> <C>
OPERATIONS:
Net investment income ................. $ 5,604,958 $ 5,966,394 $ 2,172,439 $ 2,391,647 $
3,942,335 $ 4,037,530
Net realized gain (loss) on investments 607,305 2,326,890 48,875 792,748
(30,466) 2,733,067
Net change in unrealized
appreciation of investments ........ (8,515,969) 714,989 (3,922,017) 984,919
(7,250,070) 1,350,015
------------ ------------ ----------- -----------
- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS .................... (2,303,706) 9,008,273 (1,700,703) 4,169,314
(3,338,201) 8,120,612
------------ ------------ ----------- -----------
- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ............................. (5,526,321) (5,891,605) (2,152,510) (2,377,089)
(3,833,260) (3,969,021)
Class C ............................. -- -- (274) --
(1,806) --
Class D ............................. (78,637) (74,789) (19,655) (14,558)
(107,269) (68,509)
Net realized gain on investments:
Class A ............................. (1,489,186) (139,563) (736,677) (437,159)
(2,031,676) (837,486)
Class C ............................. -- -- -- --
- -- --
Class D ............................. (27,145) (2,075) (6,599) (3,680)
(55,062) (15,723)
------------ ------------ ----------- -----------
- ----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS ...................... (7,121,289) (6,108,032) (2,915,715) (2,832,486)
(6,029,073) (4,890,739)
------------ ------------ ----------- -----------
- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net Proceeds from sales of shares ..... 3,756,676 4,343,082 1,479,059 1,598,115
7,652,890 3,946,501
Investment of dividends ............... 3,721,959 3,976,085 1,107,523 1,147,741
2,390,775 2,391,974
Exchanged from associated Funds ....... 827,963 506,489 521,150 223,404
5,429,214 3,356,915
Shares issued in payment of
gain distributions ................. 1,216,730 114,384 492,702 284,656
1,677,700 678,964
------------ ------------ ----------- -----------
- ----------- -----------
Total ................................. 9,523,328 8,940,040 3,600,434 3,253,916
17,150,579 10,374,354
------------ ------------ ----------- -----------
- ----------- -----------
Cost of shares repurchased ............ (11,554,954) (10,445,285) (5,000,231) (6,940,785)
(8,097,861) (8,302,159)
Exchanged into associated Funds ....... (998,565) (1,391,785) (275,964) (522,272)
(6,823,431) (3,398,115)
------------ ------------ ----------- -----------
- ----------- -----------
Total ................................. (12,553,519) (11,837,070) (5,276,195) (7,463,057)
(14,921,292) (11,700,274)
------------ ------------ ----------- -----------
- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS ..... (3,030,191) (2,897,030) (1,675,761) (4,209,141)
2,229,287 (1,325,920)
------------ ------------ ----------- -----------
- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS ..... (12,455,186) 3,211 (6,292,179) (2,872,313)
(7,137,987) 1,903,953
NET ASSETS:
Beginning of year ..................... 123,476,510 123,473,299 50,367,413 53,239,726
87,003,583 85,099,630
------------ ------------ ----------- -----------
- ----------- -----------
END OF YEAR ........................... $111,021,324 $123,476,510 $44,075,234 $50,367,413
$79,865,596 $87,003,583
============ ============ =========== ===========
=========== ===========
</TABLE>
44
<PAGE>
<TABLE>
<CAPTION>
OHIO SERIES OREGON SERIES SOUTH
CAROLINA SERIES
---------------------------- ---------------------------
- ----------------------------
YEAR Ended SEPTEMBER 30, YEAR Ended SEPTEMBER 30, YEAR Ended
SEPTEMBER 30,
---------------------------- ---------------------------
- ----------------------------
1999 1998 1999 1998
1999 1998
------------ ------------ ----------- -----------
- ----------- ------------
<S> <C> <C> <C> <C>
<C> <C>
OPERATIONS:
Net investment income ................. $ 7,061,807 $ 7,551,775 $ 2,678,187 $ 2,628,729 $
4,992,646 $ 5,074,598
Net realized gain (loss) on investments 297,271 3,398,423 383,853 375,535
969,149 1,214,196
Net change in unrealized
appreciation of investments ........ (11,188,018) 1,953,712 (4,304,261) 1,637,046
(9,667,415) 2,638,545
------------ ------------ ----------- -----------
- ----------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS .................... (3,828,940) 12,903,910 (1,242,221) 4,641,310
(3,705,620) 8,927,339
------------ ------------ ----------- -----------
- ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ............................. (7,006,935) (7,504,421) (2,584,867) (2,555,801)
(4,761,901) (4,905,709)
Class C ............................. (117) -- -- --
(3,556) --
Class D ............................. (54,755) (47,354) (93,320) (72,928)
(227,189) (168,889)
Net realized gain on investments:
Class A ............................. (2,412,770) (2,017,799) (359,284) (700,268)
(835,120) (905,320)
Class C ............................. -- -- -- --
- -- --
Class D ............................. (18,170) (15,589) (16,245) (21,792)
(44,640) (34,538)
------------ ------------ ----------- -----------
- ----------- ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS ...................... (9,492,747) (9,585,163) (3,053,716) (3,350,789)
(5,872,406) (6,014,456)
------------ ------------ ----------- -----------
- ----------- ------------
CAPITAL SHARE TRANSACTIONS:
Net Proceeds from sales of shares ..... 3,574,358 3,924,808 5,650,520 5,491,603
5,997,523 12,987,023
Investment of dividends ............... 4,309,497 4,659,364 1,700,123 1,645,108
2,859,370 2,937,857
Exchanged from associated Funds ....... 1,299,228 474,687 1,106,856 168,042
364,330 504,151
Shares issued in payment of
gain distributions ................. 1,836,174 1,546,463 293,110 555,040
700,269 730,165
------------ ------------ ----------- -----------
- ----------- ------------
Total ................................. 11,019,257 10,605,322 8,750,609 7,859,793
9,921,492 17,159,196
------------ ------------ ----------- -----------
- ----------- ------------
Cost of shares repurchased ............ (14,258,117) (13,498,231) (6,217,621) (5,366,485)
(12,479,379) (11,443,252)
Exchanged into associated Funds ....... (1,290,220) (1,775,539) (1,784,796) (449,600)
(721,823) (1,387,967)
------------ ------------ ----------- -----------
- ----------- ------------
Total ................................. (15,548,337) (15,273,770) (8,002,417) (5,816,085)
(13,201,202) (12,831,219)
------------ ------------ ----------- -----------
- ----------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS ..... (4,529,080) (4,668,448) 748,192 2,043,708
(3,279,710) 4,327,977
------------ ------------ ----------- -----------
- ----------- ------------
INCREASE (DECREASE) IN NET ASSETS ..... (17,850,767) (1,349,701) (3,547,745) 3,334,229
(12,857,736) 7,240,860
NET ASSETS:
Beginning of year ..................... 154,229,493 155,579,194 60,251,526 56,917,297
111,922,021 104,681,161
------------ ------------ ----------- -----------
- ----------- ------------
END OF YEAR ........................... $136,378,726 $154,229,493 $56,703,781 $60,251,526
$99,064,285 $111,922,021
============ ============ =========== ===========
=========== ============
</TABLE>
- ----------
See Notes to Financial Statements.
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. MULTIPLE CLASSES OF SHARES -- 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 three
classes of 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 charge ("CDSC") of
1% on redemptions within 18 months of purchase. The Fund began offering Class C
shares on May 27, 1999. Class C shares are sold with an initial sales charge of
up to 1% and 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 CDSC, if applicable, of 1% imposed on
redemptions made within 18 months of purchase. Class D shares are sold without
an initial sales charge but are subject to a distribution fee of up to 0.75% and
a service fee of up to 0.25% on an annual basis, and a CDSC, if applicable, of
1% imposed on redemptions made within one year of purchase. The three 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. SIGNIFICANT ACCOUNTING POLICIES -- 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. SECURITY VALUATION -- 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. FEDERAL TAXES -- 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.
C. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- 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. MULTIPLE CLASS ALLOCATIONS -- Each Series' income, expenses (other than
class-specific expenses), and realized and unrealized gains or losses are
allocated daily to each class of shares of that Series 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 year ended September 30, 1999, distribution and service fees
were the only class-specific expenses.
E. DISTRIBUTIONS TO SHAREHOLDERS -- Dividends are declared daily and paid
monthly. Other distributions paid by the Fund are recorded on the ex-dividend
date. The treatment for financial statement purposes of distributions made to
shareholders 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, or 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 SECURITIES -- Purchases and sales of portfolio
securities, excluding short-term investments, for the year ended September 30,
1999, were as follows:
SERIES PURCHASES SALES
------ --------- -----
National $13,710,320 $16,318,815
Colorado 7,204,322 3,868,319
Georgia 11,587,368 13,068,608
Louisiana 4,677,642 5,179,825
Maryland 975,380 1,750,616
Massachusetts 24,515,790 28,748,480
Michigan 5,130,252 13,737,393
Minnesota 11,442,088 16,600,430
Missouri 4,903,510 7,378,015
New York 9,891,643 10,169,039
Ohio 8,765,830 15,311,230
Oregon 8,177,695 7,168,620
South Carolina 19,017,505 22,447,948
46
<PAGE>
NOTES TO FINANCIAL STATEMENTS
At September 30, 1999, each Series' 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 $1,705,295 $2,484,287
Colorado 983,850 1,643,337
Georgia 1,431,042 1,272,868
Louisiana 1,387,501 1,373,032
Maryland 1,662,116 678,840
Massachusetts 1,483,033 2,921,692
Michigan 3,272,639 3,236,930
Minnesota 2,639,804 3,369,673
Missouri 969,122 1,385,660
New York 2,017,724 2,247,727
Ohio 3,301,161 3,294,295
Oregon 1,479,649 1,429,102
South Carolina 1,662,139 2,808,209
4. MANAGEMENT FEE, DISTRIBUTION SERVICES, AND OTHER TRANSACTIONS -- 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 Advisors, 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 sales of Class A and
Class C shares:
DISTRIBUTOR DEALER
SERIES CONCESSIONS COMMISSIONS
- -------------- ----------------- -----------------
National $10,666 $ 78,581
Colorado 6,661 48,597
Georgia 9,380 72,550
Louisiana 10,366 75,186
Maryland 8,989 67,823
Massachusetts 15,801 110,978
Michigan 15,721 117,807
Minnesota 16,002 112,488
Missouri 5,149 38,995
New York 11,345 89,869
Ohio 12,275 89,395
Oregon 16,867 124,997
South Carolina 18,815 139,299
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 year ended
September 30, 1999, the Distributor charged such fees to the Fund pursuant to
the Plan as follows:
TOTAL FEES % OF AVERAGE
SERIES PAID NET ASSETS
------ ---------- ------------
National $102,335 .10%
Colorado 46,686 .10
Georgia 47,988 .10
Louisiana 53,706 .10
Maryland 54,772 .10
Massachusetts 104,516 .10
Michigan 141,587 .10
Minnesota 119,493 .10
Missouri 46,594 .10
New York 85,866 .10
Ohio 147,925 .10
Oregon 58,613 .10
South Carolina 103,775 .10
Under the Plan, with respect to Class C and 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 an annual basis of the average daily net
assets of the Class C and Class D shares for which the organizations are
responsible, and fees for providing other distribution assistance of up to 0.75%
on an annual basis of such average daily net assets. Such fees are paid monthly
by the Fund to the Distributor pursuant to the Plan. For the year ended
September 30, 1999, fees incurred under the Plan equivalent to 1% per annum of
the average daily net assets of Class C and Class D shares were as follows:
SERIES CLASS C CLASS D SERIES CLASS C CLASS D
------ ------- ------- ------ ---------------
National $238 $65,093 Minnesota $ -- $20,659
Colorado 163 7,987 Missouri 64 5,445
Georgia 481 26,991 New York 451 28,649
Louisiana -- 8,307 Ohio 29 14,143
Maryland 121 30,773 Oregon -- 25,843
Massachusetts 293 24,617 South
Michigan 169 23,818 Carolina 892 60,396
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS
The Distributor is entitled to retain any CDSC imposed on certain redemptions of
Class A and Class C shares occurring within 18 months of purchase and on
redemptions of Class D shares occurring within one year after purchase. For the
year ended September 30, 1999, such charges were as follows:
SERIES SERIES
------ ------
National $2,363 Minnesota $ 456
Colorado 592 Missouri 21
Georgia 1,741 New York 1,233
Louisiana 42 Ohio 452
Maryland 1,050 Oregon 3,106
Massachusetts 1,088 South Carolina 6,858
Michigan 894
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of shares of the Fund, as well as distribution
and service fees pursuant to the Plan. For the year ended September 30, 1999,
Seligman Services, Inc. received commissions from the sale of shares of each
Series and distribution and service fees pursuant to the Plan, as follows:
DISTRIBUTION AND
SERIES COMMISSIONS SERVICE FEES
- ------------- ----------- ----------------
National $2,960 $8,433
Colorado 660 2,725
Georgia 205 938
Louisiana 357 956
Maryland 3,964 1,481
Massachusetts 880 2,251
Michigan 1,929 3,104
Minnesota 730 2,745
Missouri -- 3,144
New York 1,097 14,043
Ohio 174 4,351
Oregon 652 1,815
South Carolina 2,061 6,392
Seligman Data Corp., which is owned by certain associated investment
companies, charged at cost for shareholder account services the following
amounts:
SERIES SERIES
- ------------- --------------
National $138,107 Minnesota $170,276
Colorado 64,517 Missouri 70,841
Georgia 71,553 New York 105,556
Louisiana 72,335 Ohio 191,068
Maryland 80,702 Oregon 82,032
Massachusetts 136,008 South Carolina 145,959
Michigan 182,464
Certain officers and directors of the Fund are officers or directors of the
Manager, the Distributor, Seligman Services, Inc., and/or Seligman Data Corp.
The Fund has a compensation agreement under which directors who receive fees
may elect to defer receiving such fees. Directors may elect to have their
deferred fees accrue interest or earn a return based on the performance of
selected Series of the Fund or other funds in the Seligman Group of Investment
Companies. Deferred fees and related accrued earnings are not deductible for
federal income tax purposes until such amounts are paid. The cost of such fees
and earnings accrued thereon is included in directors' fees and expenses, and
the accumulated balances thereof at September 30, 1999, are included in other
liabilities as follows:
SERIES SERIES
- ------------- --------------
National $18,163 Minnesota $15,709
Colorado 11,698 Missouri 11,710
Georgia 11,045 New York 15,553
Louisiana 12,637 Ohio 15,833
Maryland 12,634 Oregon 11,554
Massachusetts 15,649 South Carolina 11,267
Michigan 15,306
5. COMMITTED LINE OF CREDIT -- The Fund is a participant in a joint $750 million
committed line of credit that is shared by substantially all funds in the
Seligman Group of Investment Companies. Each Series' borrowings are limited to
10% of its net assets. Borrowings pursuant to the credit facility are subject to
interest at a rate equal to the overnight federal funds rate plus 0.50%. Each
Series incurs a commitment fee of 0.08% per annum on its share of the unused
portion of the credit facility. The credit facility may be drawn upon only for
temporary purposes and is subject to certain other customary restrictions. The
credit facility commitment expires in June 2000, but is renewable annually with
the consent of the participating banks. For the year ended September 30, 1999,
the Fund had not borrowed from the credit facility.
6. CAPITAL LOSS CARRYFORWARD -- At September 30, 1999, the National Series had a
net capital loss carryforward for federal income tax purposes of $1,347,292,
which is available for offset against future taxable net capital gains, expiring
in various amounts through 2003. Accordingly, no capital gain distribution is
expected to be paid to shareholders of the National Series until net capital
gains have been realized in excess of the available capital loss carryforward.
48
<PAGE>
NOTES TO FINANCIAL STATEMENTS
7. CAPITAL STOCK TRANSACTIONS -- The Fund has 1,300,000,000 shares of Capital
Stock authorized. At September 30, 1999, 100,000,000 shares were authorized for
each Series of the Fund. Transactions in shares of Capital Stock were as
follows:
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
------------------------------------------------ ----------------
- --------------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED SEPTEMBER
30,
------------------------------------------------ SEPTEMBER 30,
- --------------------------------------------
1999 1998 1999 1999
1998
----------------------- ---------------------- ---------------- -------------------
- ----------------------
NATIONAL SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
---------- ----------- --------- ---------- ------ -------- ------- ---------
- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net proceeds
from
sales of shares 522,795 $4,248,236 873,287 $7,098,841 14,919 $118,601 123,246 $1,007,356
114,176 $929,650
Investment
of
dividends...... 326,477 2,639,265 321,523 2,620,048 77 594 21,570 173,587
21,003 171,356
Exchanged
from
associated
Funds 2,035,910 16,425,324 865,763 7,059,979 -- -- 697,233 5,637,065
2,093,008 16,952,120
Shares issued
in
payment of
gain
distributions.. -- -- -- -- -- -- -- --
- -- --
---------- ----------- --------- ---------- ------ -------- ------- ---------
- --------- ----------
Total............ 2,885,182 23,312,825 2,060,573 16,778,868 14,996 119,195 842,049 6,818,008
2,228,187 18,053,126
---------- ----------- --------- ---------- ------ -------- ------- ---------
- --------- ----------
Cost of
shares
repurchased.... (1,251,160) (10,091,427) (1,226,722) (9,998,684) -- -- (209,777) (1,694,433)
(77,574) (631,664)
Exchanged
into
associated
Funds (2,125,455) (17,090,673) (747,805) (6,101,457) -- -- (468,791) (3,866,250)
(1,545,820) 12,491,491)
---------- ----------- --------- ---------- ------ -------- ------- ---------
- --------- ----------
Total............ (3,376,615) (27,182,100) (1,974,527) (16,100,141) -- -- (678,568) (5,560,683)
(1,623,394) (13,123,155)
---------- ----------- --------- ---------- ------ -------- ------- ---------
- --------- ----------
Increase
(Decrease) (491,433) $(3,869,275) 86,046 $ 678,727 14,996 $119,195 163,481 $1,257,325
604,793 $4,929,971
========== =========== ========= ========== ====== ======== ======= =========
========= ==========
</TABLE>
* Commencement of offering of Class C shares.
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
------------------------------------------------ -----------------
- ----------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED
SEPTEMBER 30,
------------------------------------------------ SEPTEMBER 30,
- ----------------------------------------
1999 1998 1999
1999 1998
----------------------- ----------------------- ----------------- ------------------
- ------------------
COLORADO SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
---------- ---------- ---------- ----------- ------- -------- ------- --------
- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net proceeds from
sales of shares... 446,957 $3,319,830 171,756 $1,287,016 28,937 $209,488 54,407 $409,646
19,107 $143,429
Investment of
dividends......... 165,388 1,232,318 168,624 1,265,360 40 290 2,384 17,858
974 7,311
Exchanged from
associated Funds.. 909,439 6,824,823 294,638 2,208,315 -- -- 41,999 318,470
5,319 40,000
Shares issued in
payment of gain
distributions..... -- -- -- -- -- -- -- --
- -- --
---------- ---------- ---------- ----------- ------- -------- ------- --------
- ------- --------
Total............... 1,521,784 11,376,971 635,018 4,760,691 28,977 209,778 98,790 745,974
25,400 190,740
---------- ---------- ---------- ----------- ------- -------- ------- --------
- ------- --------
Cost of shares
repurchased....... (555,222) (4,113,017) (1,009,933) (7,569,275) (6,956) (49,460) (1,952) (14,492)
(10,459) (78,801)
Exchanged into
associated Funds.. (642,500) (4,774,441) (363,810) (2,730,725) (13,536) (97,324) (12,506) (94,848)
(1,959) (14,735)
---------- ---------- ---------- ----------- ------- -------- ------- --------
- ------- --------
Total............... (1,197,722) (8,887,458) (1,373,743) (10,300,000) (20,492) (146,784) (14,458) (109,340)
(12,418) (93,536)
---------- ---------- ---------- ----------- ------- -------- ------- --------
- ------- --------
Increase (Decrease). 324,062 $2,489,513 (738,725) $(5,539,309) 8,485 $ 62,994 84,332 $636,634
12,982 $ 97,204
========== ========== ========== =========== ======= ======== ======= ========
======= ========
</TABLE>
* Commencement of offering of Class C shares.
49
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
--------------------------------------------- ------------------
- --------------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED SEPTEMBER
30,
--------------------------------------------- ------------------
- --------------------------------------------
1999 1998 SEPTEMBER 30, 1999 1999
1998
--------------------- ---------------------- ------------------- -------------------
- ---------------------
GEORGIA SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
--------------------- ---------------------- ------------------- -------------------
- ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net proceeds from
sales of shares 316,556 $2,581,779 248,416 $2,038,654 22,407 $180,954 60,850 $503,915
111,889 $ 918,990
Investment of
dividends...... 169,142 1,378,731 173,232 1,422,482 212 1,669 9,056 74,089
10,608 87,282
Exchanged from
associated Funds 107,712 888,905 31,751 260,904 -- -- 6,834 56,261
6,394 53,323
Shares issued in
payment of gain
distributions.. 24,233 200,164 17,956 145,261 -- -- 1,562 12,933
1,182 9,588
--------- ----------- -------- ----------- ------ -------- -------- ---------
- -------- ---------
Total............. 617,643 5,049,579 471,355 3,867,301 22,619 182,623 78,302 647,198
130,073 1,069,183
--------- ----------- -------- ----------- ------ -------- -------- ---------
- -------- ---------
Cost of shares
repurchased.... (809,338) (6,556,764) (844,100) (6,905,867) -- -- (104,845) (853,647)
(73,925) (608,241)
Exchanged into
associated Funds (75,068) (609,761) (86,018) (703,073) -- -- (9,346) (77,176)
(46,291) (381,284)
--------- ----------- -------- ----------- ------ -------- -------- ---------
- -------- ---------
Total............. (884,406) (7,166,525) (930,118) (7,608,940) -- -- (114,191) (930,823)
(120,216) (989,525)
--------- ----------- -------- ----------- ------ -------- -------- ---------
- -------- ---------
Increase (Decrease) (266,763) $(2,116,946) (458,763) $(3,741,639) 22,619 $182,623 (35,889) $(283,625)
9,857 $ 79,658
======== =========== ======== =========== ====== ======== ======== =========
======== =========
</TABLE>
* Commencement of offering of Class C shares.
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
--------------------------------------------- --------------------
- ------------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED SEPTEMBER
30,
--------------------------------------------- --------------------
- ------------------------------------------
1999 1998 SEPTEMBER 30, 1999 1999
1998
--------------------- ---------------------- ------------------- -------------------
- ---------------------
LOUISIANA SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
--------------------- ---------------------- ------------------- -------------------
- ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net proceeds from
sales of shares... 286,860 $2,335,829 191,119 $1,593,079 1 $ 8 36,897 $303,293
32,909 $ 275,183
Investment of
dividends......... 153,834 1,263,489 163,549 1,366,881 -- -- 2,320 19,102
2,019 16,878
Exchanged from
associated Funds.. 8,079 67,137 3,509 29,131 -- -- 1,465 12,220
5,444 45,621
Shares issued in
payment of gain
distributions.... 58,865 490,938 7,857 64,975 -- -- 944 7,862
84 692
-------- ---------- -------- ----------- ------ ------- ------- --------
- -------- ---------
Total.............. 507,638 4,157,393 366,034 3,054,066 1 8 41,626 342,477
40,456 338,374
-------- ---------- -------- ----------- ------ ------- ------- --------
- -------- ---------
Cost of shares
repurchased...... (496,701) (4,067,199) (505,091) (4,220,025) -- -- (23,790) (197,294)
(3,426) (28,622)
Exchanged into
associated Funds. (27,551) (224,567) (31,881) (266,535) -- -- -- --
- -- --
-------- ---------- -------- ----------- ------ ------- ------- --------
- -------- ---------
Total.............. (524,252) (4,291,766) (536,972) (4,486,560) -- -- (23,790) (197,294)
(3,426) (28,622)
-------- ---------- -------- ----------- ------ ------- ------- --------
- -------- ---------
Increase (Decrease). (16,614) $ (134,373) (170,938) $(1,432,494) 1 $ 8 17,836 $145,183
37,030 $ 309,752
======== ========== ======== =========== ====== ======= ======= ========
======== =========
</TABLE>
* Commencement of offering of Class C shares.
50
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
--------------------------------------------- -------------------
- ------------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED SEPTEMBER
30,
--------------------------------------------- -------------------
- ------------------------------------------
1999 1998 SEPTEMBER 30, 1999 1999
1998
----------------------- --------------------- ------------------- -------------------
- ---------------------
MARYLAND SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
----------------------- --------------------- ------------------- -------------------
- ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net proceeds from
sales of shares... 219,835 $1,796,871 452,967 $3,716,423 9,572 $76,445 59,308 $ 487,229
173,585 $1,423,657
Investment of
dividends......... 185,215 1,505,823 182,716 1,496,930 1 8 12,056 98,236
9,536 78,222
Exchanged from
associated Funds.. 31,342 253,207 35,858 294,333 -- -- 6,029 49,773
2,043 16,794
Shares issued in
payment of gain
distributions.... 16,816 138,396 27,829 225,691 -- -- 1,266 10,428
1,354 10,991
--------- ------------ --------- ----------- ------ ------- -------- ---------
- --------- ----------
Total.............. 453,208 3,694,297 699,370 5,733,377 9,573 76,453 78,659 645,666
186,518 1,529,664
--------- ------------ --------- ----------- ------ ------- -------- ---------
- --------- ----------
Cost of shares
repurchased...... (666,448) (5,412,629) (519,240) (4,254,611) -- -- (92,244) (753,873)
(63,527) (521,910)
Exchanged into
associated Funds. (29,780) (241,553) (34,518) (282,486) -- -- (6,195) (49,882)
(423) (3,461)
--------- ------------ --------- ----------- ------ ------- -------- ---------
- --------- ----------
Total............. (696,228) (5,654,182) (553,758) (4,537,097) -- -- (98,439) (803,755)
(63,950) (525,371)
--------- ------------ --------- ----------- ------ ------- -------- ---------
- --------- ----------
Increase (Decrease) (243,020) $ (1,959,885) 145,612 $ 1,196,280 9,573 $ 76,453 (19,780) $(158,089)
122,568 $ 1,004,293
======== ============ ========= =========== ====== ======== ======= =========
========= ===========
</TABLE>
* Commencement of offering of Class C shares.
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
----------------------------------------------- -------------------
- -----------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED
SEPTEMBER 30,
----------------------------------------------- -------------------
- -----------------------------------------
MASSACHUSETTS 1999 1998 SEPTEMBER 30, 1999
1999 1998
----------------------- ---------------------- ------------------- -------------------
- --------------------
SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
------------------------ ---------------------- ------------------- -------------------
- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net proceeds from
sales of shares. 394,021 $ 3,161,511 301,803 $2,426,260 30,519 $233,167 144,406 $1,169,254
48,564 $392,038
Investment of
dividends....... 346,377 2,758,847 381,287 3,066,637 14 103 6,391 50,273
2,830 22,770
Exchanged from
associated Funds 2,678,695 21,337,252 1,354,117 10,859,223 21 157 166,950 1,348,159
14,321 116,384
Shares issued in
payment of gain
distributions... 56,744 460,197 120,229 951,011 -- -- 648 5,256
923 7,293
---------- ------------ ---------- ----------- ------ -------- -------- ---------
- --------- ---------
Total.............. 3,475,837 27,717,807 2,157,436 17,303,131 30,554 233,427 318,395 2,572,942
66,638 538,485
---------- ------------ ---------- ----------- ------ -------- -------- ---------
- --------- ---------
Cost of shares
repurchased..... (1,208,459) (9,620,904) (1,241,182) (9,987,117) -- -- (78,032) (613,957)
(44,816) (361,116)
Exchanged into
associated Funds (3,050,731) (24,293,627) (1,454,254) (11,696,486) -- -- (25,100)
(197,221) -- --
---------- ------------ ---------- ----------- ------ -------- -------- ---------
- --------- --------
Total............. (4,259,190) (33,914,531) (2,695,436) (21,683,603) -- -- (103,132) (811,178)
(44,816) (361,116)
---------- ------------ ---------- ----------- ------ -------- -------- ---------
- --------- --------
Increase (Decrease) (783,353) $ (6,196,724) (538,000) $(4,380,472) 30,554 $233,427 215,263 $1,761,764
21,822 $ 177,369
========== ============ ========== =========== ====== ======== ======== =========
========= =========
</TABLE>
* Commencement of offering of Class C shares.
51
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
----------------------------------------------- -------------------
- -----------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED
SEPTEMBER 30,
-----------------------------------------------
- -----------------------------------------
1999 1998 SEPTEMBER 30, 1999
1999 1998
----------------------- ---------------------- -------------------- -------------------
- --------------------
MICHIGAN SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
------------------------ ---------------------- ------------------ -------------------
- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net proceeds from
sales of shares.. 566,910 $ 4,817,469 552,545 $4,780,685 14,221 $116,801 90,158 $ 772,545
37,739 $325,385
Investment of
dividends........ 460,956 3,901,810 484,322 4,190,240 28 226 7,291 61,648
5,822 50,303
Exchanged from
associated Funds. 61,998 530,458 339,541 2,928,969 -- -- 34,906 305,268
12,157 106,164
Shares issued in
payment of gain
distributions.... 221,134 1,897,325 106,820 911,174 -- -- 3,830 32,823
1,653 14,084
---------- ----------- ---------- ----------- ------ -------- ------- ---------
- --------- ---------
Total............. 1,310,998 11,147,062 1,483,228 12,811,068 14,249 117,027 136,185 1,172,284
57,371 495,936
---------- ----------- ---------- ----------- ------ -------- ------- ---------
- --------- ---------
Cost of shares
repurchased...... (1,838,104) (15,497,098) (1,447,886) (12,531,450) -- -- (86,833) (719,396)
(55,636) (479,641)
Exchanged into
associated Funds (192,577) (1,646,007) (382,652) (3,299,610) -- -- -- --
(7,657) (66,539)
---------- ----------- ---------- ----------- ------ -------- ------- ---------
- --------- --------
Total............. (2,030,681) (17,143,105) (1,830,538) (15,831,060) -- -- (86,833) (719,396)
(63,293) (546,180)
---------- ------------ ---------- ----------- ------ -------- ------- ---------
- --------- --------
Increase
(Decrease)....... (719,683) $ (5,996,043) (347,310) $(3,019,992) 14,249 $117,027 49,352 $ 452,888
(5,922) $(50,244)
========= ============ ========= =========== ====== ======== ======= =========
========= ========
</TABLE>
* Commencement of offering of Class C shares.
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
------------------------------------------------ -------------------
- ----------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED
SEPTEMBER 30,
------------------------------------------------
- ----------------------------------------
1999 1998 SEPTEMBER 30, 1999
1999 1998
----------------------- ----------------------- -------------------- -------------------
- -------------------
MINNESOTA SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
----------------------- ----------------------- -------------------- -------------------
- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net proceeds from
sales of shares 448,156 $3,467,423 480,210 $3,759,777 1 $ 8 37,069 $ 289,245
74,514 $583,305
Investment of
dividends...... 475,864 3,675,004 502,233 3,934,003 -- -- 6,072 46,955
5,371 42,082
Exchanged from
associated Funds 79,497 621,391 47,797 373,852 -- -- 26,054 206,572
16,965 132,637
Shares issued in
payment of gain
distributions.. 153,173 1,196,281 14,480 112,803 -- -- 2,615 20,449
203 1,581
----------- ----------- ---------- ----------- ------ ------- ------- --------
- --------- --------
Total............. 1,156,690 8,960,099 1,044,720 8,180,435 1 8 71,810 563,221
97,053 759,605
----------- ----------- ---------- ----------- ------ ------- ------- --------
- --------- --------
Cost of shares
repurchased.... (1,415,157) (10,904,586) (1,308,615) (10,246,157) -- -- (83,338) (650,368)
(25,476) (199,128)
Exchanged into
associated Funds (131,646) (998,565) (138,742) (1,084,969) -- -- -- --
(38,924) (306,816)
---------- ----------- ---------- ----------- ------ ------- ------- --------
- --------- --------
Total............ (1,546,803) (11,903,151) (1,447,357) (11,331,126) -- -- (83,338) (650,368)
(64,400) (505,944)
---------- ----------- ---------- ----------- ------ ------- ------- --------
- --------- --------
Increase
(Decrease) ...... (390,113) $ (2,943,052) (402,637) $(3,150,691) 1 $ 8 (11,528) $ (87,147)
32,653 $ 253,661
========== ============ ========= =========== ====== ======= ======= =========
========= =========
</TABLE>
* Commencement of offering of Class C shares.
52
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
--------------------------------------------- -------------------
- ------------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED SEPTEMBER
30,
--------------------------------------------- -------------------
- ------------------------------------------
1999 1998 SEPTEMBER 30, 1999 1999
1998
--------------------- ---------------------- ------------------- -------------------
- ---------------------
MISSOURI SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
--------------------- ---------------------- ------------------- -------------------
- ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net proceeds from
sales of shares 143,714 $1,117,391 192,882 $1,518,510 2,887 $21,877 43,815 $339,791
10,178 $79,605
Investment of
dividends...... 141,770 1,091,323 144,574 1,135,261 27 202 2,082 15,998
1,589 12,480
Exchanged from
associated Funds 63,527 497,543 28,380 223,404 -- -- 2,979 23,607
- -- --
Shares issued in
payment of gain
distributions.. 62,316 486,691 36,308 281,752 -- -- 770 6,011
374 2,904
-------- ----------- -------- ----------- ------ -------- -------- ---------
- --------- --------
Total............. 411,327 3,192,948 402,144 3,158,927 2,914 22,079 49,646 385,407
12,141 94,989
-------- ----------- -------- ----------- ------ -------- -------- ---------
- --------- --------
Cost of shares
repurchased.... (640,800) (4,889,919) (861,837) (6,778,544) -- -- (14,354) (110,312)
(20,769) (162,241)
Exchanged into
associated Funds (33,222) (255,281) (66,519) (522,272) -- -- (2,657) (20,683)
- -- --
-------- ----------- -------- ----------- ------ -------- -------- ---------
- --------- --------
Total............. (674,022) (5,145,200) (928,356) (7,300,816) -- -- (17,011) (130,995)
(20,769) (162,241)
-------- ----------- -------- ----------- ------ -------- -------- ---------
- --------- ---------
Increase (Decrease) (262,695) $(1,952,252) (526,212) $(4,141,889) 2,914 $ 22,079 32,635 $ 254,412
(8,628) $ (67,252)
======== =========== ======== =========== ====== ======== ======== =========
========= =========
</TABLE>
* Commencement of offering of Class C shares.
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
------------------------------------------------ -------------------
- ----------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED SEPTEMBER
30,
------------------------------------------------
- ----------------------------------------
1999 1998 SEPTEMBER 30, 1999 1999
1998
---------------------- ----------------------- -------------------- -------------------
- -------------------
NEW YORK SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
---------------------- ----------------------- -------------------- -------------------
- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net proceeds from
sales of shares 802,995 $6,593,637 409,090 $3,404,935 35,036 $278,217 94,489 $781,036
64,754 $541,566
Investment of
dividends...... 284,109 2,315,942 280,689 2,342,732 83 644 9,087 74,189
5,891 49,242
Exchanged from
associated Funds 589,737 4,819,554 389,085 3,247,626 -- -- 72,704 609,660
12,843 109,289
Shares issued in
payment of gain
distributions.. 196,696 1,630,608 81,252 666,270 -- -- 5,681 47,092
1,546 12,694
---------- ----------- ---------- ------------ ------ -------- ------- ----------
- --------- --------
Total............. 1,873,537 15,359,741 1,160,116 9,661,563 35,119 278,861 181,961 1,511,977
85,034 712,791
---------- ----------- ---------- ------------ ------ -------- ------- ----------
- --------- --------
Cost of shares
repurchased.... (952,833) (7,728,238) (974,859) (8,149,245) (5,721) (45,709) (39,787) (323,914)
(18,301) (152,914)
Exchanged into
associated
Funds (803,766) (6,577,087) (404,227) (3,375,173) (4,833) (37,500) (26,500) (208,844)
(2,738) (22,942)
---------- ----------- --------- ------------ ------- -------- ------- ----------
- --------- --------
Total........... (1,756,599) (14,305,325) (1,379,086) (11,524,418) (10,554) (83,209) (66,287) (532,758)
(21,039) (175,856)
---------- ----------- ---------- ------------ ------- -------- ------- ----------
- --------- --------
Increase
(Decrease) 116,938 $ 1,054,416 (218,970) $(1,862,855) 24,565 $195,652 115,674 $ 979,219
63,995 $ 536,935
========== =========== ========== =========== ======= ======== ======= =========
========= =========
</TABLE>
* Commencement of offering of Class C shares.
53
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
------------------------------------------------ -------------------
- ----------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED SEPTEMBER
30,
------------------------------------------------
- ----------------------------------------
1999 1998 SEPTEMBER 30, 1999
1999 1998
----------------------- ----------------------- -------------------- -------------------
- -------------------
OHIO SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
----------------------- ----------------------- ------------------- -------------------
- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net proceeds from
sales of shares. 361,672 $ 2,918,252 453,643 $3,716,543 2,248 $17,828 78,121 $638,278
25,288 $ 208,265
Investment of
dividends...... 530,982 4,266,794 563,375 4,618,664 13 95 5,281 42,608
4,941 40,700
Exchanged from
associated Funds 134,140 1,074,172 49,472 404,291 -- -- 27,382 225,056
8,543 70,396
Shares issued in
payment of gain
distributions.. 223,380 1,820,544 189,198 1,532,501 -- -- 1,911 15,630
1,715 13,962
--------- ------------ ---------- --------- ------ ------- ------- ---------
- --------- ---------
Total............. 1,250,174 10,079,762 1,255,688 10,271,999 2,261 17,923 112,695 921,572
40,487 333,323
--------- ------------ ---------- --------- ------ ------- ------- ---------
- --------- ---------
Cost of shares
repurchased.... (1,741,673) (13,920,913) (1,599,143) (13,102,427) -- -- (42,299) (337,204)
(48,136) (395,804)
Exchanged into
associated
Funds ........ (131,868) (1,057,828) (214,380) (1,758,230) -- -- (28,756) (232,392)
(2,092) (17,309)
---------- ------------ ---------- ----------- ------ ------- ------- ---------
- --------- ---------
Total............. (1,873,541) (14,978,741) (1,813,523) (14,860,657) -- -- (71,055) (569,596)
(50,228) (413,113)
---------- ------------ ---------- ----------- ------ ------- ------- ---------
- --------- ---------
Increase (Decrease) (623,367) $ (4,898,979) (557,835) $(4,588,658) 2,261 $17,923 41,640 $ 351,976
(9,741) $ (79,790)
========== ============ ========= =========== ====== ======= ======= =========
========= =========
</TABLE>
* Commencement of offering of Class C shares.
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
------------------------------------------------ -------------------
- ----------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED SEPTEMBER
30,
------------------------------------------------
- ----------------------------------------
1999 1998 SEPTEMBER 30, 1999
1999 1998
----------------------- ----------------------- -------------------- -------------------
- -------------------
OREGON SERIES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
----------------------- ----------------------- ------------------ -------------------
- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net proceeds from
sales of shares 679,526 $ 5,340,535 578,820 $4,579,085 1 $ 8 39,323 $ 309,977
115,620 $ 912,518
Investment of
dividends...... 209,299 1,637,871 201,391 1,588,261 -- -- 7,942 62,252
7,211 56,847
Exchanged from
associated Funds 130,494 1,028,496 15,314 120,904 -- -- 9,849 78,360
5,944 47,138
Shares issued in
payment of gain
distributions.. 35,501 281,167 69,111 536,993 -- -- 1,508 11,943
2,326 18,047
---------- ----------- -------- ---------- ------ ------ ------- ---------
- --------- ---------
Total............. 1,054,820 8,288,069 864,636 6,825,243 1 8 58,622 462,532
131,101 1,034,550
---------- ----------- -------- ---------- ------ ------ ------- ---------
- --------- --------
Cost of shares
repurchased.... (706,461) (5,517,373) (666,927) (5,263,365) -- -- (89,753) (700,248)
(13,128) (103,120)
Exchanged into
associated Funds (226,571) (1,784,105) (55,368) (437,002) -- -- (87) (691)
(1,600) (12,598)
---------- ----------- -------- ---------- ------ ------ ------- ---------
- --------- ---------
Total............. (933,032) (7,301,478) (722,295) (5,700,367) -- -- (89,840) (700,939)
(14,728) (115,718)
---------- ----------- -------- ---------- ------ ------ ------- ---------
- --------- ---------
Increase (Decrease) 121,788 $ 986,591 142,341 $1,124,876 1 $ 8 (31,218) $(238,407)
116,373 $ 918,832
========== =========== ======== ========== ====== ====== ======= =========
========= =========
</TABLE>
* Commencement of offering of Class C shares.
54
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS D
--------------------------------------------- --------------------
- ------------------------------------------
YEAR ENDED SEPTEMBER 30, MAY 27, 1999* TO YEAR ENDED SEPTEMBER
30,
--------------------------------------------- --------------------
- ------------------------------------------
SOUTH CAROLINA 1999 1998 SEPTEMBER 30, 1999 1999
1998
SERIES ------------------------ ---------------------- -------------------- -------------------
- ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
SHARES AMOUNT
------------------------ ---------------------- -------------------- -------------------
- ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net proceeds from
sales of shares.. 495,837 $4,009,453 1,307,029 $10,736,862 43,342 $344,052 201,377 $1,644,018
273,163 $2,250,161
Investment of
dividends...... 333,372 2,699,308 341,280 2,804,800 403 3,128 19,414 156,934
16,202 133,057
Exchanged from
associated Funds 39,056 319,755 54,738 452,032 -- -- 5,412 44,575
6,370 52,119
Shares issued in
payment of gain
distributions.. 80,358 661,343 86,250 698,627 -- -- 4,735 38,926
3,898 31,538
---------- ------------ ---------- ----------- ------ -------- -------- --------
- ------- -----------
Total............. 948,623 7,689,859 1,789,297 14,692,321 43,745 347,180 230,938 1,884,453
299,633 2,466,875
---------- ------------ ---------- ----------- ------ -------- -------- --------
- ------- -----------
Cost of shares
repurchased.... (1,450,098) (11,588,440) (1,319,559) (10,837,647) -- -- (111,023) (890,939)
(73,888) (605,605)
Exchanged into
associated Funds (76,691) (620,953) (162,725) (1,330,837) -- -- (12,742) (100,870)
(6,993) (57,130)
---------- ------------ ---------- ----------- ------ -------- -------- ---------
- ------- ----------
Total............. (1,526,789) (12,209,393) (1,482,284) (12,168,484) -- -- (123,765) (991,809)
(80,881) (662,735)
---------- ------------ ---------- ----------- ------ -------- -------- ---------
- ------- -----------
Increase (Decrease) (578,166) $ (4,519,534) 307,013 $ 2,523,837 43,745 $347,180 107,173 $ 892,644
218,752 $ 1,804,140
========== ============ ========== =========== ====== ======== ======== =========
======= ===========
</TABLE>
* Commencement of offering of Class C shares.
55
<PAGE>
FINANCIAL HIGHLIGHTS
The tables below are intended to help you understand the financial
performance of each Class of each Series for the past five years or from its
inception if less than five years. Certain information reflects financial
results for a single share of a Class that was held throughout the periods
shown. Per share amounts are calculated using average shares outstanding during
the period. "Total return" shows the rate that you would have earned (or lost)
on an investment in each Class, assuming you reinvested all your dividends and
capital gain distributions. Total returns do not reflect any sales charges and
are not annualized for periods of less than one year.
NATIONAL SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
----------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- ---------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................. $8.32 $8.01 $7.70 $7.58
$7.18 $8.08
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.39 0.39 0.39 0.40
0.40 0.11
Net realized and unrealized gain (loss)
on investments ...................................... (0.64) 0.31 0.31 0.12
0.40 (0.40)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.25) 0.70 0.70 0.52
0.80 (0.29)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.39) (0.39) (0.39) (0.40)
(0.40) (0.11)
Distributions from net realized capital gain .......... -- -- -- --
- -- --
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS ................................... (0.39) (0.39) (0.39) (0.40)
(0.40) (0.11)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD ........................ $7.68 $8.32 $8.01 $7.70
$7.58 $7.68
====== ====== ====== ======
====== ======
TOTAL RETURN: (3.11)% 9.00% 9.40% 6.97%
11.48% (3.38)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) .............. $90,296 $101,909 $97,481 $98,767
$104,184 $115
Ratio of expenses to average net assets ............... 0.83% 0.80% 0.84% 0.80%
0.86% 1.74%+
Ratio of net income to average net assets ............. 4.83% 4.82% 5.05% 5.19%
5.46% 4.10%+
Portfolio turnover rate ............................... 13.37% 18.00% 20.63% 33.99%
24.91% 13.37%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR .................... $8.31 $8.02 $7.70 $7.57 $7.18
----- ----- ----- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.32 0.32 0.32 0.33 0.32
Net realized and unrealized gain (loss)
on investments ...................................... (0.63) 0.29 0.32 0.13 0.39
----- ----- ----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.31) 0.61 0.64 0.46 0.71
----- ----- ----- ----- -----
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.32) (0.32) (0.32) (0.33) (0.32)
Distributions from net realized capital gain .......... -- -- -- -- --
----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS ................................... (0.32) (0.32) (0.32) (0.33) (0.32)
----- ----- ----- ----- -----
NET ASSET VALUE, END OF YEAR .......................... $7.68 $8.31 $8.02 $7.70 $7.57
===== ===== ===== ===== =====
TOTAL RETURN: (3.85)% 7.76% 8.56% 6.13% 10.17%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................ $8,079 $7,392 $2,279 $4,826 $1,215
Ratio of expenses to average net assets ............... 1.73% 1.71% 1.75% 1.67% 1.95%
Ratio of net income to average net assets ............. 3.93% 3.91% 4.15% 4.27% 4.40%
Portfolio turnover rate ............................... 13.37% 18.00% 20.63% 33.99% 24.91%
</TABLE>
- -------------
See footnotes on page 68.
56
<PAGE>
FINANCIAL HIGHLIGHTS
COLORADO SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
5/27/99**
YEAR ENDED SEPTEMBER
30, TO
---------------------------------------------------
- ---------
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ................. $7.64 $7.42 $7.27 $7.30
$7.09 $7.47
----- ----- ----- -----
- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................ 0.34 0.36 0.37 0.37
0.38 0.10
Net realized and unrealized gain (loss)
on investments ..................................... (0.54) 0.22 0.15 (0.03)
0.21 (0.38)
----- ----- ----- -----
- ----- -----
TOTAL FROM INVESTMENT OPERATIONS ..................... (0.20) 0.58 0.52 0.34
0.59 (0.28)
----- ----- ----- -----
- ----- -----
LESS DISTRIBUTIONS:
Dividends from net investment income ................. (0.34) (0.36) (0.37) (0.37)
(0.38) (0.10)
Distributions from net realized capital gain ......... -- -- -- --
- -- --
----- ----- ----- -----
- ----- -----
TOTAL DISTRIBUTIONS .................................. (0.34) (0.36) (0.37) (0.37)
(0.38) (0.10)
----- ----- ----- -----
- ----- -----
NET ASSET VALUE, END OF PERIOD ....................... $7.10 $7.64 $7.42 $7.27
$7.30 $7.09
===== ===== ===== =====
===== =====
TOTAL RETURN: (2.67)% 8.03% 7.30% 4.76%
8.56% (3.93)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ............. $44,649 $45,583 $49,780 $52,295
$54,858 $60
Ratio of expenses to average net assets .............. 0.87% 0.90% 0.90% 0.85%
0.93% 1.73%+
Ratio of net income to average net assets ............ 4.60% 4.80% 5.01% 5.07%
5.31% 3.85%+
Portfolio turnover rate .............................. 7.91% 28.66% 3.99% 12.39%
14.70% 7.91%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
---------------------------------------------------
YEAR ENDED SEPTEMBER 30,
---------------------------------------------------
<S> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR .................... $7.63 $7.42 $7.27 $7.29 $7.09
----- ----- ----- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.28 0.29 0.30 0.31 0.30
Net realized and unrealized gain (loss)
on investments ...................................... (0.54) 0.21 0.15 (0.02) 0.20
----- ----- ----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.26) 0.50 0.45 0.29 0.50
----- ----- ----- ----- -----
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.28) (0.29) (0.30) (0.31) (0.30)
Distributions from net realized capital gain .......... -- -- -- -- --
----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS ................................... (0.28) (0.29) (0.30) (0.31) (0.30)
----- ----- ----- ----- -----
NET ASSET VALUE, END OF YEAR .......................... $7.09 $7.63 $7.42 $7.27 $7.29
===== ===== ===== ===== =====
TOTAL RETURN: (3.57)% 6.90% 6.34% 3.95% 7.26%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................ $917 $344 $238 $255 $193
Ratio of expenses to average net assets ............... 1.77% 1.80% 1.81% 1.75% 2.02%
Ratio of net income to average net assets ............. 3.70% 3.90% 4.10% 4.17% 4.23%
Portfolio turnover rate ............................... 7.91% 28.66% 3.99% 12.39% 14.70%
</TABLE>
- ----------------------
See footnotes on page 68.
57
<PAGE>
FINANCIAL HIGHLIGHTS
GEORGIA SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- --------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................. $8.38 $8.12 $7.87 $7.81
$7.48 $8.17
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.37 0.38 0.38 0.39
0.39 0.11
Net realized and unrealized gain (loss)
on investments ...................................... (0.58) 0.29 0.28 0.11
0.43 (0.41)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.21) 0.67 0.66 0.50
0.82 (0.30)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.37) (0.38) (0.38) (0.39)
(0.39) (0.11)
Distributions from net realized capital gain .......... (0.05) (0.03) (0.03) (0.05)
(0.10) --
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS ................................... (0.42) (0.41) (0.41) (0.44)
(0.49) (0.11)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD ........................ $7.75 $8.38 $8.12 $7.87
$7.81 $7.76
====== ====== ====== ======
====== ======
TOTAL RETURN: ......................................... (2.63)% 8.44% 8.65% 6.56%
11.66% (3.84)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) .............. $42,692 $48,424 $50,614 $50,995
$57,678 $176
Ratio of expenses to average net assets ............... 0.87% 0.89% 0.89% 0.83%
0.91% 1.74%+
Ratio of net income to average net assets ............. 4.59% 4.57% 4.82% 4.94%
5.26% 3.89%+
Portfolio turnover rate ............................... 23.93% 2.92% 12.28% 16.24%
3.36% 23.93%++
Without management fee waiver:*
Ratio of expenses to average net assets ............... 0.96%
Ratio of net income to average net assets ............. 5.21%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR .................... $8.40 $8.13 $7.88 $7.82 $7.49
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.30 0.30 0.31 0.32 0.32
Net realized and unrealized gain (loss)
on investments ...................................... (0.59) 0.30 0.28 0.11 0.43
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.29) 0.60 0.59 0.43 0.75
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.30) (0.30) (0.31) (0.32) (0.32)
Distributions from net realized capital gain .......... (0.05) (0.03) (0.03) (0.05) (0.10)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ................................... (0.35) (0.33) (0.34) (0.37) (0.42)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR .......................... $7.76 $8.40 $8.13 $7.88 $7.82
====== ====== ====== ====== ======
TOTAL RETURN: ......................................... (3.61)% 7.59% 7.67% 5.60% 10.58%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................ $2,318 $2,809 $2,640 $2,327 $2,079
Ratio of expenses to average net assets ............... 1.77% 1.80% 1.79% 1.73% 1.90%
Ratio of net income to average net assets ............. 3.69% 3.66% 3.92% 4.03% 4.28%
Portfolio turnover rate ............................... 23.93% 2.92% 12.28% 16.24% 3.36%
Without management fee waiver:*
Net investment income per share ....................... $0.31
Ratio of expenses to average net assets ............... 1.95%
Ratio of net income to average net assets ............. 4.23%
</TABLE>
- -----------------
See footnotes on page 68.
58
<PAGE>
FINANCIAL HIGHLIGHTS
LOUISIANA SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- --------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................. $8.51 $8.28 $8.16 $8.14
$7.94 $8.19
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.39 0.41 0.41 0.42
0.43 0.11
Net realized and unrealized gain (loss)
on investments ...................................... (0.59) 0.24 0.23 0.08
0.34 (0.39)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.20) 0.65 0.64 0.50
0.77 (0.28)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.39) (0.41) (0.41) (0.42)
(0.43) (0.11)
Distributions from net realized capital gain .......... (0.11) (0.01) (0.11) (0.06)
(0.14) --
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS ................................... (0.50) (0.42) (0.52) (0.48)
(0.57) (0.11)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD ........................ $7.81 $8.51 $8.28 $8.16
$8.14 $7.80
====== ====== ====== ======
====== ======
TOTAL RETURN: ......................................... (2.44)% 8.08% 8.17% 6.32%
10.30% (3.55)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) .............. $51,543 $56,308 $56,199 $57,264 $61,988
$ --
Ratio of expenses to average net assets ............... 0.84% 0.88% 0.86% 0.82%
0.89% 1.71%+
Ratio of net income to average net assets ............. 4.76% 4.86% 5.08% 5.15%
5.44% 4.00%+
Portfolio turnover rate ............................... 8.67% 15.72% 16.08% 10.08%
4.82% 8.67%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR .................... $8.50 $8.27 $8.16 $8.14 $7.94
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.32 0.33 0.34 0.35 0.35
Net realized and unrealized gain (loss)
on investments ...................................... (0.59) 0.24 0.22 0.08 0.34
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.27) 0.57 0.56 0.43 0.69
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.32) (0.33) (0.34) (0.35) (0.35)
Distributions from net realized capital gain .......... (0.11) (0.01) (0.11) (0.06) (0.14)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ................................... (0.43) (0.34) (0.45) (0.41) (0.49)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR .......................... $7.80 $8.50 $8.27 $8.16 $8.14
====== ====== ====== ====== ======
TOTAL RETURN: ......................................... (3.33)% 7.11% 7.07% 5.37% 9.17%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................ $908 $837 $509 $389 $465
Ratio of expenses to average net assets ............... 1.74% 1.78% 1.76% 1.72% 1.91%
Ratio of net income to average net assets ............. 3.86% 3.96% 4.18% 4.25% 4.41%
Portfolio turnover rate ............................... 8.67% 15.72% 16.08% 10.08% 4.82%
</TABLE>
- -----------------
See footnotes on page 68.
59
<PAGE>
FINANCIAL HIGHLIGHTS
MARYLAND SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- --------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................. $8.32 $8.14 $7.99 $7.96
$7.71 $8.13
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.39 0.40 0.40 0.40
0.41 0.11
Net realized and unrealized gain (loss)
on investments ...................................... (0.50) 0.23 0.19 0.06
0.38 (0.33)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.11) 0.63 0.59 0.46
0.79 (0.22)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.39) (0.40) (0.40) (0.40)
(0.41) (0.11)
Distributions from net realized capital gain .......... (0.03) (0.05) (0.04) (0.03)
(0.13) --
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS ................................... (0.42) (0.45) (0.44) (0.43)
(0.54) (0.11)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD ........................ $7.79 $8.32 $8.14 $7.99
$7.96 $7.80
====== ====== ====== ======
====== ======
TOTAL RETURN: ......................................... (1.45)% 7.89% 7.64% 6.00%
10.90% (2.83)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) .............. $49,523 $54,891 $52,549 $54,041
$56,290 $75
Ratio of expenses to average net assets ............... 0.87% 0.89% 0.90% 0.84%
0.96% 1.75%+
Ratio of net income to average net assets ............. 4.77% 4.82% 4.99% 5.05%
5.31% 4.04%+
Portfolio turnover rate ............................... 1.80% 7.59% 14.79% 5.56%
3.63% 1.80%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR .................... $8.33 $8.15 $7.99 $7.97 $7.72
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.31 0.32 0.33 0.33 0.33
Net realized and unrealized gain (loss)
on investments ...................................... (0.50) 0.23 0.20 0.05 0.38
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.19) 0.55 0.53 0.38 0.71
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.31) (0.32) (0.33) (0.33) (0.33)
Distributions from net realized capital gain .......... (0.03) (0.05) (0.04) (0.03) (0.13)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ................................... (0.34) (0.37) (0.37) (0.36) (0.46)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR .......................... $7.80 $8.33 $8.15 $7.99 $7.97
====== ====== ====== ====== ======
TOTAL RETURN: ......................................... (2.00)% 6.91% 6.80% 4.91% 9.75%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................ $2,775 $3,128 $2,063 $2,047 $630
Ratio of expenses to average net assets ............... 1.77% 1.80% 1.81% 1.72% 2.02%
Ratio of net income to average net assets ............. 3.87% 3.91% 4.08% 4.14% 4.27%
Portfolio turnover rate ............................... 1.80% 7.59% 14.79% 5.56% 3.63%
</TABLE>
- -----------------
See footnotes on page 68.
60
<PAGE>
FINANCIAL HIGHLIGHTS
MASSACHUSETTS SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- --------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD $8.27 $7.99 $7.85 $7.91
$7.66 $7.96
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.36 0.38 0.40 0.41
0.42 0.10
Net realized and unrealized gain (loss)
on investments (0.75) 0.37 0.22 0.05
0.28 (0.49)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.39) 0.75 0.62 0.46
0.70 (0.39)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.36) (0.38) (0.40) (0.41)
(0.42) (0.10)
Distributions from net realized capital gain (0.05) (0.09) (0.08) (0.11)
(0.03) --
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS (0.41) (0.47) (0.48) (0.52)
(0.45) (0.10)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD $7.47 $8.27 $7.99 $7.85
$7.91 $7.47
====== ====== ====== ======
====== ======
TOTAL RETURN: (4.85)% 9.80% 8.11% 5.97%
9.58% (5.02)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) $92,929 $109,328 $110,011 $109,872
$115,711 $228
Ratio of expenses to average net assets 0.83% 0.80% 0.84% 0.80%
0.86% 1.73%+
Ratio of net income to average net assets 4.56% 4.72% 5.06% 5.24%
5.51% 3.80%+
Portfolio turnover rate 23.88% 13.41% 29.26% 26.30%
16.68% 23.88%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR $8.26 $7.99 $7.84 $7.90 $7.66
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.29 0.31 0.33 0.34 0.34
Net realized and unrealized gain (loss)
on investments (0.74) 0.36 0.23 0.05 0.27
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.45) 0.67 0.56 0.39 0.61
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.29) (0.31) (0.33) (0.34) (0.34)
Distributions from net realized capital gain (0.05) (0.09) (0.08) (0.11) (0.03)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.34) (0.40) (0.41) (0.45) (0.37)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR $7.47 $8.26 $7.99 $7.84 $7.90
====== ====== ====== ====== ======
TOTAL RETURN: (5.61)% 8.68% 7.29% 5.01% 8.33%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) $2,934 $1,468 $1,245 $1,405 $809
Ratio of expenses to average net assets 1.73% 1.71% 1.74% 1.70% 1.95%
Ratio of net income to average net assets 3.66% 3.81% 4.16% 4.32% 4.47%
Portfolio turnover rate 23.88% 13.41% 29.26% 26.30% 16.68%
</TABLE>
- -----------------
See footnotes on page 68.
<PAGE>
FINANCIAL HIGHLIGHTS
MICHIGAN SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- --------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD $8.83 $8.60 $8.46 $8.54
$8.28 $8.43
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.40 0.41 0.43 0.45
0.46 0.11
Net realized and unrealized gain (loss)
on investments (0.63) 0.30 0.23 0.06
0.30 (0.40)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.23) 0.71 0.66 0.51
0.76 (0.29)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.40) (0.41) (0.43) (0.45)
(0.46) (0.11)
Distributions from net realized capital gain (0.16) (0.07) (0.09) (0.14)
(0.04) --
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS (0.56) (0.48) (0.52) (0.59)
(0.50) (0.11)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD $8.04 $8.83 $8.60 $8.46
$8.54 $8.03
====== ====== ====== ======
====== ======
TOTAL RETURN: (2.77)% 8.63% 8.16% 6.16%
9.56% (3.55)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) $125,560 $144,161 $143,370 $148,178
$151,589 $114
Ratio of expenses to average net assets 0.82% 0.79% 0.81% 0.78%
0.87% 1.73%+
Ratio of net income to average net assets 4.73% 4.78% 5.13% 5.29%
5.50% 3.96%+
Portfolio turnover rate 3.73% 23.60% 10.98% 19.62%
20.48% 3.73%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR $8.82 $8.59 $8.45 $8.54 $8.28
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.32 0.33 0.36 0.37 0.37
Net realized and unrealized gain (loss)
on investments (0.63) 0.30 0.23 0.05 0.30
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.31) 0.63 0.59 0.42 0.67
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.32) (0.33) (0.36) (0.37) (0.37)
Distributions from net realized capital gain (0.16) (0.07) (0.09) (0.14) (0.04)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.48) (0.40) (0.45) (0.51) (0.41)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR $8.03 $8.82 $8.59 $8.45 $8.54
====== ====== ====== ====== ======
TOTAL RETURN: (3.65)% 7.66% 7.19% 5.09% 8.36%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) $2,074 $1,841 $1,845 $1,486 $1,172
Ratio of expenses to average net assets 1.72% 1.70% 1.71% 1.68% 2.01%
Ratio of net income to average net assets 3.83% 3.87% 4.23% 4.39% 4.40%
Portfolio turnover rate 3.73% 23.60% 10.98% 19.62% 20.48%
</TABLE>
- -----------------
See footnotes on page 68.
62
<PAGE>
FINANCIAL HIGHLIGHTS
MINNESOTA SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- --------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD $7.98 $7.79 $7.68 $7.82
$7.72 $7.72
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.36 0.38 0.40 0.42
0.45 0.10
Net realized and unrealized gain (loss)
on investments (0.52) 0.20 0.11 (0.12)
0.11 (0.36)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.16) 0.58 0.51 0.30
0.56 (0.26)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.36) (0.38) (0.40) (0.42)
(0.45) (0.10)
Distributions from net realized capital gain (0.10) (0.01) -- (0.02)
(0.01) --
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS (0.46) (0.39) (0.40) (0.44)
(0.46) (0.10)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD $7.36 $7.98 $7.79 $7.68
$7.82 $7.36
====== ====== ====== ======
====== ======
TOTAL RETURN: (2.09)% 7.68% 6.85% 3.99%
7.61% (3.47)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) $109,165 $121,374 $121,674 $126,173
$132,716 $ --
Ratio of expenses to average net assets 0.84% 0.81% 0.85% 0.81%
0.87% 1.74%+
Ratio of net income to average net assets 4.71% 4.87% 5.21% 5.47%
5.89% 3.94%+
Portfolio turnover rate 9.74% 21.86% 6.88% 26.89%
5.57% 9.74%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR $7.98 $7.79 $7.68 $7.82 $7.73
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.30 0.31 0.33 0.35 0.38
Net realized and unrealized gain (loss)
on investments (0.52) 0.20 0.11 (0.12) 0.10
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS (0.22) 0.51 0.44 0.23 0.48
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.30) (0.31) (0.33) (0.35) (0.38)
Distributions from net realized capital gain (0.10) (0.01) -- (0.02) (0.01)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS (0.40) (0.32) (0.33) (0.37) (0.39)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR $7.36 $7.98 $7.79 $7.68 $7.82
====== ====== ====== ====== ======
TOTAL RETURN: (2.96)% 6.71% 5.89% 3.06% 6.45%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) $1,856 $2,103 $1,799 $2,036 $2,237
Ratio of expenses to average net assets 1.74% 1.72% 1.75% 1.71% 1.85%
Ratio of net income to average net assets 3.81% 3.96% 4.31% 4.57% 4.92%
Portfolio turnover rate 9.74% 21.86% 6.88% 26.89% 5.57%
</TABLE>
- -----------------
See footnotes on page 68.
63
<PAGE>
FINANCIAL HIGHLIGHTS
MISSOURI SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- --------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................. $8.03 $7.82 $7.71 $7.70
$7.41 $7.68
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.35 0.36 0.38 0.39
0.40 0.10
Net realized and unrealized gain (loss)
on investments ...................................... (0.62) 0.28 0.19 0.08
0.36 (0.39)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.27) 0.64 0.57 0.47
0.76 (0.29)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.35) (0.36) (0.38) (0.39)
(0.40) (0.10)
Distributions from net realized capital gain .......... (0.12) (0.07) (0.08) (0.07)
(0.07) --
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS ................................... (0.47) (0.43) (0.46) (0.46)
(0.47) (0.10)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD ........................ $7.29 $8.03 $7.82 $7.71
$7.70 $7.29
====== ====== ====== ======
====== ======
TOTAL RETURN: ......................................... (3.58)% 8.41% 7.70% 6.27%
10.67% (3.95)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) .............. $43,437 $49,949 $52,766 $49,941
$51,169 $21
Ratio of expenses to average net assets ............... 0.87% 0.89% 0.89% 0.86%
0.88% 1.74%+
Ratio of net income to average net assets ............. 4.50% 4.59% 4.93% 5.03%
5.31% 3.75%+
Portfolio turnover rate ............................... 10.43% 21.26% 6.47% 8.04%
3.88% 10.43%++
Without management fee waiver:*
Net investment income per share ....................... $0.39
Ratio of expenses to average net assets ............... 0.93%
Ratio of net income to average net assets ............. 5.26%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR .................... $8.03 $7.82 $7.72 $7.70 $7.41
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.28 0.29 0.31 0.32 0.32
Net realized and unrealized gain (loss)
on investments ...................................... (0.62) 0.28 0.18 0.09 0.36
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.34) 0.57 0.49 0.41 0.68
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.28) (0.29) (0.31) (0.32) (0.32)
Distributions from net realized capital gain .......... (0.12) (0.07) (0.08) (0.07) (0.07)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ................................... (0.40) (0.36) (0.39) (0.39) (0.39)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR .......................... $7.29 $8.03 $7.82 $7.72 $7.70
====== ====== ====== ====== ======
TOTAL RETURN: ......................................... (4.46)% 7.45% 6.60% 5.46% 9.49%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................ $617 $418 $474 $565 $515
Ratio of expenses to average net assets ............... 1.77% 1.79% 1.80% 1.76% 1.98%
Ratio of net income to average net assets ............. 3.60% 3.69% 4.02% 4.13% 4.23%
Portfolio turnover rate ............................... 10.43% 21.26% 6.47% 8.04% 3.88%
Without management fee waiver:*
Ratio of expenses to average net assets ............... 2.03%
Ratio of net income to average net assets ............. 4.18%
</TABLE>
- ---------------
See footnotes on page 68.
64
<PAGE>
FINANCIAL HIGHLIGHTS
NEW YORK SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- --------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................. $8.60 $8.28 $7.98 $7.86
$7.67 $8.14
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.38 0.40 0.41 0.42
0.42 0.11
Net realized and unrealized gain (loss)
on investments ...................................... (0.69) 0.40 0.32 0.12
0.36 (0.44)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.31) 0.80 0.73 0.54
0.78 (0.33)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.38) (0.40) (0.41) (0.42)
(0.42) (0.11)
Distributions from net realized capital gain .......... (0.21) (0.08) (0.02) --
(0.17) --
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS ................................... (0.59) (0.48) (0.43) (0.42)
(0.59) (0.11)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD ........................ $7.70 $8.60 $8.28 $7.98
$7.86 $7.70
====== ====== ====== ======
====== ======
TOTAL RETURN: ......................................... (3.86)% 10.02% 9.45% 6.97%
10.93% (4.22)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) .............. $76,833 $84,822 $83,528 $82,719
$83,980 $189
Ratio of expenses to average net assets ............... 0.81% 0.81% 0.82% 0.77%
0.88% 1.69%+
Ratio of net income to average net assets ............. 4.63% 4.74% 5.09% 5.24%
5.52% 3.96%+
Portfolio turnover rate ............................... 11.85% 39.85% 23.83% 25.88%
34.05% 11.85%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR .................... $8.60 $8.29 $7.98 $7.87 $7.67
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.30 0.32 0.34 0.34 0.34
Net realized and unrealized gain (loss)
on investments ...................................... (0.69) 0.39 0.33 0.11 0.37
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.39) 0.71 0.67 0.45 0.71
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.30) (0.32) (0.34) (0.34) (0.34)
Distributions from net realized capital gain .......... (0.21) (0.08) (0.02) -- (0.17)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ................................... (0.51) (0.40) (0.36) (0.34) (0.51)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR .......................... $7.70 $8.60 $8.29 $7.98 $7.87
====== ====== ====== ====== ======
TOTAL RETURN: ......................................... (4.73)% 8.88% 8.60% 5.86% 9.87%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................ $2,844 $2,182 $1,572 $1,152 $885
Ratio of expenses to average net assets ............... 1.71% 1.72% 1.73% 1.68% 1.96%
Ratio of net income to average net assets ............. 3.73% 3.83% 4.18% 4.33% 4.42%
Portfolio turnover rate ............................... 11.85% 39.85% 23.83% 25.88% 34.05%
</TABLE>
- -----------------
See footnotes on page 68.
65
<PAGE>
FINANCIAL HIGHLIGHTS
OHIO SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- --------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................. $8.37 $8.19 $8.09 $8.11
$7.90 $8.06
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.38 0.40 0.42 0.43
0.44 0.11
Net realized and unrealized gain (loss)
on investments ...................................... (0.60) 0.29 0.17 0.02
0.28 (0.38)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.22) 0.69 0.59 0.45
0.72 (0.27)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.38) (0.40) (0.42) (0.43)
(0.44) (0.11)
Distributions from net realized capital gain .......... (0.13) (0.11) (0.07) (0.04)
(0.07) --
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS ................................... (0.51) (0.51) (0.49) (0.47)
(0.51) (0.11)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD ........................ $7.64 $8.37 $8.19 $8.09
$8.11 $7.68
====== ====== ====== ======
====== ======
TOTAL RETURN: ......................................... (2.68)% 8.77% 7.54% 5.68%
9.59% (3.51)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) .............. $135,034 $153,126 $154,419 $162,243
$170,191 $18
Ratio of expenses to average net assets ............... 0.81% 0.78% 0.81% 0.77%
0.84% 1.71%+
Ratio of net income to average net assets ............. 4.78% 4.92% 5.19% 5.32%
5.56% 3.99%+
Portfolio turnover rate ............................... 6.07% 24.74% 11.76% 12.90%
2.96% 6.07%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR .................... $8.41 $8.23 $8.13 $8.15 $7.92
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.31 0.33 0.35 0.36 0.36
Net realized and unrealized gain (loss)
on investments ...................................... (0.60) 0.29 0.17 0.02 0.30
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.29) 0.62 0.52 0.38 0.66
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.31) (0.33) (0.35) (0.36) (0.36)
Distributions from net realized capital gain .......... (0.13) (0.11) (0.07) (0.04) (0.07)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ................................... (0.44) (0.44) (0.42) (0.40) (0.43)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR .......................... $7.68 $8.41 $8.23 $8.13 $8.15
====== ====== ====== ====== ======
TOTAL RETURN: ......................................... (3.52)% 7.78% 6.57% 4.74% 8.67%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................ $1,327 $1,103 $1,160 $1,011 $660
Ratio of expenses to average net assets ............... 1.71% 1.69% 1.71% 1.67% 1.93%
Ratio of net income to average net assets ............. 3.88% 4.01% 4.29% 4.42% 4.48%
Portfolio turnover rate ............................... 6.07% 24.74% 11.76% 12.90% 2.96%
</TABLE>
- -----------------
See footnotes on page 68.
66
<PAGE>
FINANCIAL HIGHLIGHTS
OREGON SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- --------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................. $8.05 $7.87 $7.65 $7.66
$7.43 $7.83
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.35 0.36 0.38 0.40
0.40 0.10
Net realized and unrealized gain (loss)
on investments ...................................... (0.52) 0.28 0.26 .--
0.25 (0.35)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.17) 0.64 0.64 0.40
0.65 (0.25)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.35) (0.36) (0.38) (0.40)
(0.40) (0.10)
Distributions from net realized capital gain .......... (0.05) (0.10) (0.04) (0.01)
(0.02) .--
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS ................................... (0.40) (0.46) (0.42) (0.41)
(0.42) (0.10)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD ........................ $7.48 $8.05 $7.87 $7.65
$7.66 $7.48
====== ====== ====== ======
====== ======
TOTAL RETURN: ......................................... (2.16)% 8.48% 8.60% 5.27%
9.05% (3.32)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) .............. $54,473 $57,601 $55,239 $57,345
$59,549 $--
Ratio of expenses to average net assets ............... 0.86% 0.88% 0.90% 0.86%
0.86% 1.73%+
Ratio of net income to average net assets ............. 4.52% 4.60% 4.88% 5.18%
5.40% 3.77%+
Portfolio turnover rate ............................... 12.28% 12.62% 19.46% 28.65%
2.47% 12.28%++
Without management fee waiver:*
Ratio of expenses to average net assets ............... 0.91%
Ratio of net income to average net assets ............. 5.35%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR .................... $8.04 $7.87 $7.64 $7.65 $7.43
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.28 0.29 0.31 0.33 0.33
Net realized and unrealized gain (loss)
on investments ...................................... (0.51) 0.27 0.27 .-- 0.24
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.23) 0.56 0.58 0.33 0.57
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.28) (0.29) (0.31) (0.33) (0.33)
Distributions from net realized capital gain .......... (0.05) (0.10) (0.04) (0.01) (0.02)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ................................... (0.33) (0.39) (0.35) (0.34) (0.35)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR .......................... $7.48 $8.04 $7.87 $7.64 $7.65
====== ====== ====== ====== ======
TOTAL RETURN: ......................................... (2.92)% 7.37% 7.77% 4.33% 7.86%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................ $2,231 $2,650 $1,678 $1,540 $1,495
Ratio of expenses to average net assets ............... 1.76% 1.79% 1.80% 1.76% 1.83%
Ratio of net income to average net assets ............. 3.62% 3.69% 3.98% 4.28% 4.41%
Portfolio turnover rate ............................... 12.28% 12.62% 19.46% 28.65% 2.47%
Without management fee waiver:*
Ratio of expenses to average net assets ............... 1.88%
Ratio of net income to average net assets ............. 4.36%
</TABLE>
- -----------------
See footnotes on page 68.
67
<PAGE>
FINANCIAL HIGHLIGHTS
SOUTH CAROLINA SERIES
<TABLE>
<CAPTION>
CLASS A
CLASS C
---------------------------------------------------
- ----------
YEAR ENDED SEPTEMBER 30,
5/27/99**
- --------------------------------------------------- TO
1999 1998 1997 1996 1995
9/30/99
---- ---- ---- ---- ----
- ---------
<S> <C> <C> <C> <C>
<C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................. $8.38 $8.16 $8.07 $7.97
$7.61 $8.08
------ ------ ------ ------
- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.38 0.39 0.40 0.41
0.41 0.11
Net realized and unrealized gain (loss)
on investments ...................................... (0.64) 0.29 0.22 0.12
0.37 (0.42)
------ ------ ------ ------
- ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.26) 0.68 0.62 0.53
0.78 (0.31)
------ ------ ------ ------
- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.38) (0.39) (0.40) (0.41)
(0.41) (0.11)
Distributions from net realized capital gain .......... (0.07) (0.07) (0.13) (0.02)
(0.01) --
------ ------ ------ ------
- ------ ------
TOTAL DISTRIBUTIONS ................................... (0.45) (0.46) (0.53) (0.43)
(0.42) (0.11)
------ ------ ------ ------
- ------ ------
NET ASSET VALUE, END OF PERIOD ........................ $7.67 $8.38 $8.16 $8.07
$7.97 $7.66
====== ====== ====== ======
====== ======
TOTAL RETURN: ......................................... (3.32)% 8.66% 7.99% 6.82%
10.69% (4.01)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) .............. $92,793 $106,328 $101,018 $108,163
$112,421 $335
Ratio of expenses to average net assets ............... 0.83% 0.80% 0.84% 0.80%
0.88% 1.72%+
Ratio of net income to average net assets ............. 4.65% 4.74% 5.04% 5.15%
5.38% 3.96%+
Portfolio turnover rate ............................... 18.06% 16.63% .-- 20.66%
4.13% 18.06%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR .................... $8.38 $8.16 $8.06 $7.97 $7.61
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.30 0.31 0.33 0.34 0.34
Net realized and unrealized gain (loss)
on investments ...................................... (0.65) 0.29 0.23 0.11 0.37
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ...................... (0.35) 0.60 0.56 0.45 0.71
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.30) (0.31) (0.33) (0.34) (0.34)
Distributions from net realized capital gain .......... (0.07) (0.07) (0.13) (0.02) (0.01)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ................................... (0.37) (0.38) (0.46) (0.36) (0.35)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR .......................... $7.66 $8.38 $8.16 $8.06 $7.97
====== ====== ====== ====== ======
TOTAL RETURN: ......................................... (4.32)% 7.68% 7.15% 5.73% 9.63%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................ $5,936 $5,594 $3,663 $2,714 $1,704
Ratio of expenses to average net assets ............... 1.73% 1.71% 1.75% 1.70% 1.85%
Ratio of net income to average net assets ............. 3.75% 3.83% 4.13% 4.25% 4.40%
Portfolio turnover rate ............................... 18.06% 16.63% -- 20.66% 4.13%
</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 C shares.
+ Annualized.
++ For the year ended September 30, 1999.
See Notes to Financial Statements.
68
<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 Seligman Municipal Fund Series, Inc.
(comprising, respectively, the National, Colorado, Georgia, Louisiana, Maryland,
Massachusetts, Michigan, Minnesota, Missouri, New York, Ohio, Oregon, and South
Carolina Series) as of September 30, 1999, the related statements of operations
for the year then ended and of changes in net assets for each of the years in
the two-year period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1999 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 referred to
above present fairly, in all material respects, the financial position of each
of the respective Series constituting the Seligman Municipal Fund Series, Inc.
as of September 30, 1999, the results of their operations, the changes in their
net assets, and their 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
November 5, 1999
- --------------------------------------------------------------------------------
69
<PAGE>
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
JOHN R. GALVIN 2, 4
DEAN, Fletcher School of Law and Diplomacy
at Tufts University
DIRECTOR, Raytheon Company
ALICE S. ILCHMAN 3, 4
TRUSTEE, Committee for Economic Development
CHAIRMAN, The Rockefeller Foundation
FRANK A. MCPHERSON 2, 4
DIRECTOR, Kimberly-Clark Corporation
DIRECTOR, Baptist Medical Center
DIRECTOR, Conoco Inc.
JOHN E. MEROW 2, 4
RETIRED CHAIRMAN AND SENIOR PARTNER,
Sullivan & Cromwell, Law Firm
DIRECTOR, Commonwealth Industries, Inc.
DIRECTOR, New York Presbyterian Hospital
BETSY S. MICHEL 2, 4
TRUSTEE, The Geraldine R. Dodge Foundation
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, 4
RETIRED PARTNER, Pitney, Hardin, Kipp & Szuch, Law Firm
JAMES Q. RIORDAN 3, 4
DIRECTOR, KeySpan Energy Corporation
TRUSTEE, Committee for Economic Development
DIRECTOR, Public Broadcasting Service
RICHARD R. SCHMALTZ 1
MANAGING DIRECTOR, DIRECTOR OF INVESTMENTS,
J. & W. Seligman & Co. Incorporated
TRUSTEE EMERITUS, Colby College
ROBERT L. SHAFER 3, 4
RETIRED VICE PRESIDENT, Pfizer Inc.
JAMES N. WHITSON 2, 4
DIRECTOR AND CONSULTANT, Sammons Enterprises, Inc.
DIRECTOR, C-SPAN
DIRECTOR, CommScope, Inc.
BRIAN T. ZINO 1
PRESIDENT
PRESIDENT, J. & W. Seligman & Co. Incorporated
CHAIRMAN, Seligman Data Corp.
DIRECTOR, ICI Mutual Insurance Company
MEMBER OF THE BOARD OF GOVERNORS,
Investment Company Institute
DIRECTOR EMERITUS
FRED E. BROWN
DIRECTOR AND CONSULTANT,
J. &W. Seligman &Co. Incorporated
- ----------------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
4 Board Operations Committee
- --------------------------------------------------------------------------------
70
<PAGE>
EXECUTIVE OFFICERS
- --------------------------------------------------------------------------------
WILLIAM C. MORRIS
CHAIRMAN
BRIAN T. ZINO
PRESIDENT
THOMAS G. MOLES
VICE PRESIDENT
LAWRENCE P. VOGEL
VICE PRESIDENT
THOMAS G. ROSE
TREASURER
FRANK J. NASTA
SECRETARY
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FOR MORE INFORMATION
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 Advisors, 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
(212) 682-7600 Outside the United States
(800) 622-4597 24-Hour Automated Telephone Access Service
- --------------------------------------------------------------------------------
71
<PAGE>
GLOSSARY OF FINANCIAL TERMS
CAPITAL GAIN DISTRIBUTION -- A payment to mutual fund shareholders of profits
realized on the sale of securities in a fund's portfolio.
CAPITAL APPRECIATION/DEPRECIATION -- An increase or decrease in the market value
of a mutual fund's portfolio securities, which is reflected in the net asset
value of the fund's shares. Capital appreciation/depreciation of an individual
security is in relation to the original purchase price.
COMPOUNDING -- The change in the value of an investment as shareholders receive
earnings on their investment's earnings. For example, if $1,000 is invested at a
fixed rate of 7% a year, the initial investment is worth $1,070 after one year.
If the return is compounded, second year earnings will not be based on the
original $1,000, but on the $1,070, which includes the first year's earnings.
CONTINGENT DEFERRED SALES CHARGE (CDSC) -- Depending on the class of shares
owned, a fee charged by a mutual fund when shares are sold back to the fund. The
CDSC expires after a fixed time period.
DIVIDEND -- A payment by a mutual fund, usually derived from the fund's net
investment income (dividends and interest less expenses).
DIVIDEND YIELD -- A measurement of a fund's dividend as a percentage of the
maximum offering price or net asset value.
EXPENSE RATIO -- The cost of doing business for a mutual fund, expressed as a
percent of the fund's net assets.
INVESTMENT OBJECTIVE -- The shared investment goal of a fund and its
shareholders.
MANAGEMENT FEE -- The amount paid by a mutual fund to its investment advisor(s).
MULTIPLE CLASSES OF SHARES -- Although an individual mutual fund invests in only
one portfolio of securities, it may offer investors several purchase options
which are "classes" of shares. Multiple classes permit shareholders to choose
the fee structure that best meets their needs and goals. Generally, each class
will differ in terms of how and when sales charges and certain fees are
assessed.
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. (NASD) -- A self-regulatory
body with authority over firms that distribute mutual funds.
NET ASSET VALUE (NAV) PER SHARE -- The market worth of one fund share, obtained
by adding a mutual fund's total assets (securities, cash, and any accrued
earnings), subtracting liabilities, and dividing the resulting net assets by the
number of shares outstanding.
OFFERING PRICE -- The price at which a mutual fund's share can be purchased. The
offering price per share is the current net asset value plus any sales charge.
PORTFOLIO TURNOVER -- A measure of the trading activity in a mutual fund's
investment portfolio that reflects how often securities are bought and sold.
PROSPECTUS -- The legal document describing a mutual fund to all prospective
shareholders. It contains information required by the Securities and Exchange
Commission (SEC), such as a fund's investment objective and policies, services,
investment restrictions, how shares are bought and sold, fund fees and other
charges, and the fund's financial highlights.
SEC YIELD -- SEC Yield refers to the net income earned by a fund during a recent
30-day period. This income is annualized and then divided by the maximum
offering price per share on the last day of the 30-day period. The SEC Yield
formula reflects semiannual compounding.
SECURITIES AND EXCHANGE COMMISSION -- The primary US federal agency that
regulates the registration and distribution of mutual fund shares.
STATEMENT OF ADDITIONAL INFORMATION -- A document that contains more detailed
information about an investment company and that supplements the prospectus. It
is available at no charge upon request.
TOTAL RETURN -- A measure of a fund's performance encompassing all elements of
return. Reflects the change in share price over a given period and assumes all
distributions are taken in additional fund shares. The AVERAGE ANNUAL TOTAL
RETURN represents the average annual compounded rate of return for the periods
presented.
YIELD ON SECURITIES -- For bonds, the current yield is the coupon rate of
interest, divided by the purchase price. For stocks, the yield is measured by
dividing dividends paid by the market price of the stock.
- --------------------
Adapted from the Investment Company Institute's 1999 MUTUAL FUND FACT BOOK.
72
<PAGE>
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 fee, and other costs. Please read the prospectus
carefully before investing or sending money.
SELIGMAN ADVISORS, INC.
AN AFFILIATE OF
[lOGO]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 PARK AVENUE, NEW YORK, NY 10017
TEA2 9/99 Printed on Recycled Paper
