S E L I G M A N
----------------------------
MUNICIPAL FUND SERIES, INC.
[Graphic Omitted]
MID-YEAR REPORT
MARCH 31, 2000
---------
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 and firm adherence to financial
prudence. While the world has changed dramatically in the 136 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.
[PHOTO OMITTED]
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 in 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 ............................. 11
Statements of Assets and Liabilities .................. 30
Statements of Operations .............................. 32
Statements of Changes in Net Assets ................... 34
Notes to Financial Statements ......................... 39
Financial Highlights .................................. 50
Report of Independent Auditors
and For More Information ............................ 63
Board of Directors and Executive Officers ............. 64
Glossary of Financial Terms ........................... 65
-----------------------------------------------------------
<PAGE>
TO THE SHAREHOLDERS
The past six months were difficult for fixed-income securities, including
municipal bonds. The continued strong pace of the US economic expansion--which
in February became the longest in US history--has caused the Federal Reserve
Board to act on its concern that the increasing demand for goods and services
would exceed the economy's ability to deliver them. The Federal Reserve Board
feared that this could produce an imbalance that could ignite inflation. In an
attempt to slow the economy and ease inflationary pressures, the Federal Reserve
Board raised the federal funds rate three times during this six-month period.
As short-term interest rates moved higher, and the economy showed no signs of
slowing in response, long-term rates increased significantly, and bond prices
fell accordingly. Municipal bonds, however, fared better than did other
fixed-income securities because of an accompanying slowdown in new-issue supply,
which provided some price support for the municipal market.
During the first quarter of 2000, notwithstanding the increases in short-term
rates, the long-term interest-rate environment improved. This was primarily the
result of investors looking for alternatives to the equity markets, which had
become increasingly volatile during this time.
As yet, it seems that the Federal Reserve Board's actions have not slowed the
economy--indeed the consumer price index for March indicated a significant
increase in consumer prices. However, we believe that the Federal Reserve
Board's actions will ultimately be successful in keeping inflation at bay. Such
economic cooling should eventually place downward pressure on interest rates,
which could be positive for fixed-income securities over the long term.
In addition to our expectation that the interest-rate environment will
stabilize, we believe that municipal bonds have unique characteristics that
could allow them to deliver positive performance. First, we anticipate that
municipal new issuance will remain lower in 2000 than in 1999, which would
create a favorable supply and demand environment. Second, continued uncertainty
in the stock market may prompt investors to consider a wider range of securities
for their portfolios, and municipal bonds, which currently offer many investors
after-tax yield advantages over taxable bonds, may be an attractive choice.
Finally, we believe that recent shifts in the way business is conducted in the
municipal marketplace bode well for the long-term success of the industry.
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, financial
statements, and performance history, 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
May 5, 2000
1
<PAGE>
INTERVIEW WITH YOUR PORTFOLIO MANAGER,
THOMAS G. MOLES
Q: WHAT ECONOMIC AND MARKET FACTORS INFLUENCED SELIGMAN MUNICIPAL FUND SERIES
DURING THE PAST SIX MONTHS?
A: The primary factor affecting all fixed-income securities, including
municipal bonds, was the strong economy and the Federal Reserve Board's
response to the continued robust pace of growth. Beginning in 1999, a number
of economic indicators, particularly those related to employment costs and
consumer spending, heightened the Federal Reserve Board's concern. At the
same time, oil prices were on the rise, which exacerbated inflation worries.
Since June 1999, in an attempt to prevent a resurgence in the rate of
inflation, the Federal Reserve Board has raised the federal funds rate five
times for a total of 125 additional basis points. This increase in
short-term rates pushed long-term yields higher, and bond prices lower.
However, during the first fiscal quarter of 2000, bonds rallied as equity
investors sought stability in the face of volatile equity markets.
Another factor that influenced municipal bond performance during the past
six months was the balance between supply and demand. Throughout 1999, a
combination of rising municipal bond yields and strong equity market returns
pushed demand for municipal bonds considerably lower. However, weak demand
was accompanied by a slowdown in new municipal issuances. Such issuances
were down 21% in 1999 from 1998. Through March 31, 2000, issuances were down
32% versus the same period last year.
This slowdown in supply helped to stabilize the municipal market during
periods of Treasury market volatility. Over the past six months, long-term
municipal yields, as measured by the Bond Buyer 20-Bond General Obligation
Index, fluctuated within a narrow trading range of approximately 38 basis
points. In contrast, 10-year US Treasury note yields fluctuated within a
much wider range of 90 basis points. On March 31, 2000, long-term municipal
yields were nearly unchanged from those at the Fund's fiscal year end on
September 30, 1999.
The financial condition of the nation's states, cities, and municipalities
continues to improve. Credit-rating upgrades outnumbered downgrades by a
ratio of seven to one for calendar year 1999, and the first quarter of 2000
represented the 18th consecutive quarter in which upgrades exceeded
downgrades. An exception to this positive news has been the healthcare
sector, which remains under pressure due to merger activity, government
cutbacks, and the growth of managed care.
Q: DID THE MUNICIPAL MARKET SUFFER ANY NEGATIVE EFFECTS FROM THE YEAR 2000
COMPUTER ISSUE?
A. Through the coordinated efforts of governments, businesses, and individuals,
the municipal bond
[PHOTO 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
market entered the new millennium uneventfully. The resources expended to
prevent computer glitches may have contributed to the strong economic
reports released over the past six months.
Q: WHAT WAS YOUR INVESTMENT STRATEGY?
A: Over the past six months, long-term municipal yields rose to levels not seen
in nearly two-and-one-half years. While such a rising-rate environment is
unfavorable for bonds, it provided the Fund with buying opportunities to
lock in higher yields for the long term and to reduce positions in
shorter-term and lower-yielding securities.
The higher yields that were available also facilitated our ongoing efforts
to improve call protection for the Fund. Many of the Fund's older,
higher-coupon bonds are at or near their optional call dates. (Callable
bonds can be redeemed by the issuer, prior to maturity on predetermined
dates and at specified prices.) Issuers generally call bonds when interest
rates have declined sufficiently to allow them to refinance their
outstanding debt at lower rates. Callable bonds thus pose a potential risk
to the Fund's dividend distributions because the proceeds from a called bond
must be reinvested at prevailing, typically lower, yields. By selectively
selling short-call positions and reinvesting the proceeds when higher yields
are available, we hope to protect the Fund's future dividend distributions.
We believe that as a result of these actions the Fund is better positioned
for the long term. However, during periods of rising interest rates, the
Fund's net asset values declined more than they would have had we chosen to
retain short-term defensive holdings, which are less sensitive to changes in
interest rates.
As a result of the ongoing difficulties in the healthcare sector, we have
been particularly diligent in staying abreast of the current financial
status of our hospital credits. We have sold a number of declining credits
and have replaced them with securities showing greater stability.
Q: WHAT IS YOUR OUTLOOK?
A: Municipal investment returns for the first quarter of 2000 have been
positive, with the municipal market outperforming the Treasury, agency, and
corporate sectors. We are optimistic that long-term municipal yields have
peaked and expect that the recent downward trend in yields will continue.
However, until the Federal Reserve Board appears satisfied that economic
growth has slowed to an acceptable rate, the bond markets may find it
difficult to sustain a prolonged rally.
Equity market volatility may continue over the near term, prompting some
investors to seek more stable alternatives for at least a portion of their
investment assets. We are optimistic that the municipal market's record of
safety and stability will spark renewed interest in municipal bonds. In
addition, for many investors, municipal securities currently offer
significant after-tax yield advantages relative to taxable bonds.
We are also encouraged by several positive long-term developments in the
municipal market, including improved disclosure, greater price transparency,
and the emergence of Internet underwriters and secondary market makers. An
open, accessible municipal market benefits all participants by encouraging
informed decision-making and, in our opinion, is essential for the long-term
viability of the municipal industry.
3
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
INVESTMENT RESULTS PER SHARE
NATIONAL SERIES
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (3.22)% n/a (6.77)% 4.63% 5.97% n/a
Without Sales Charge 1.56 n/a (2.09) 5.65 6.49 n/a
CLASS C**
With Sales Charge and CDSC (0.91) (4.53)% n/a n/a n/a n/a
Without Sales Charge and CDSC 1.11 (2.64) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 0.12 n/a (3.79) n/a n/a n/a
Without CDSC 1.11 n/a (2.86) 4.68 n/a 2.96%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97++
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.60 $7.68 $8.17 CLASS A $0.198 -- 4.92%
CLASS C 7.60 7.68 n/a CLASS C 0.164 -- 4.23
CLASS D 7.60 7.68 8.16 CLASS D 0.164 -- 4.25
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 74% Aaa/AAA 36%
General Obligation Bondsoo 26 Aa/AA 31
A/A 24
WEIGHTED AVERAGE MATURITY 25.6 years Baa/BBB 9
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
COLORADO SERIES
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL
---------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (3.52)% n/a (6.81)% 3.35% 5.10% n/a
Without Sales Charge (1.24) n/a (2.11) 4.36 5.62 n/a
CLASS C**
With Sales Charge and CDSC (1.03) (4.98)% n/a n/a n/a n/a
Without Sales Charge and CDSC 0.93 (3.03) n/a n/a n/a n/a
CLASS D**
With 1% CDSC (0.05) n/a (3.91) n/a n/a n/a
Without CDSC 0.93 n/a (2.99) 3.42 n/a 2.48%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $6.96 $7.10 $7.52 CLASS A $0.175 $0.050 4.56%
CLASS C 6.96 7.09 n/a CLASS C 0.144 0.050 3.85
CLASS D 6.96 7.09 7.52 CLASS D 0.144 0.050 3.88
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 83% Aaa/AAA 54%
General Obligation Bondsoo 17 Aa/AA 24
A/A 9
WEIGHTED AVERAGE MATURITY 20.76 years Baa/BBB 13
</TABLE>
--------------------
See footnotes on page 10.
4
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
INVESTMENT RESULTS PER SHARE
GEORGIA SERIES
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (2.95)% n/a (6.34)% 4.57% 6.10% n/a
Without Sales Charge 1.93 n/a (1.67) 5.60 6.61 n/a
CLASS C**
With Sales Charge and CDSC (0.39) (4.16)% n/a n/a n/a n/a
Without Sales Charge and CDSC 1.61 (2.29) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 0.64 n/a (3.46) n/a n/a n/a
Without CDSC 1.61 n/a (2.54) 4.66 n/a 3.34%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.53 $7.75 $8.23 CLASS A $0.190 $0.173 4.65%
CLASS C 7.55 7.76 n/a CLASS C 0.157 0.173 3.95
CLASS D 7.55 7.76 8.25 CLASS D 0.157 0.173 3.99
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 80% Aaa/AAA 50%
General Obligation Bondsoo 20 Aa/AA 15
A/A 28
WEIGHTED AVERAGE MATURITY 22.93 years Baa/BBB 7
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
LOUISIANA SERIES
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (2.97)% n/a (6.15)% 4.24% 5.85% n/a
Without Sales Charge 1.88 n/a (1.50) 5.26 6.37 n/a
CLASS C**
With Sales Charge and CDSC (0.46) (3.94)% n/a n/a n/a n/a
Without Sales Charge and CDSC 1.55 (2.06) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 0.56 n/a (3.33) n/a n/a n/a
Without CDSC 1.55 n/a (2.40) 4.32 n/a 3.16%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.71 $7.81 $8.28 CLASS A $0.198 $0.046 4.70%
CLASS C 7.71 7.80 n/a CLASS C 0.163 0.046 4.00
CLASS D 7.71 7.80 8.28 CLASS D 0.163 0.046 4.04
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 84% Aaa/AAA 82%
General Obligation Bondsoo 16 Aa/AA 9
Baa/BBB 9
WEIGHTED AVERAGE MATURITY 20.30 years
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
------------------
See footnotes on page 10.
5
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
INVESTMENT RESULTS PER SHARE
MARYLAND SERIES
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (2.97)% n/a (5.77)% 4.23% 5.88% n/a
Without Sales Charge 1.71 n/a (1.06) 5.25 6.40 n/a
CLASS C**
With Sales Charge and CDSC (0.88) (3.63)% n/a n/a n/a n/a
Without Sales Charge and CDSC 1.12 (1.74) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 0.13 n/a (3.01) n/a n/a n/a
Without CDSC 1.12 n/a (2.07) 4.26 n/a 3.25%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.72 $7.79 $8.21 CLASS A $0.198 $0.004 4.70%
CLASS C 7.72 7.80 n/a CLASS C 0.163 0.004 3.99
CLASS D 7.72 7.80 8.22 CLASS D 0.163 0.004 4.03
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 81% Aaa/AAA 41%
General Obligation Bondsoo 19 Aa/AA 39
A/A 18
WEIGHTED AVERAGE MATURITY 21.49 years Baa/BBB 2
MASSACHUSETTS SERIES
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (2.46)% n/a (7.65)% 3.97% 5.98% n/a
Without Sales Charge 2.37 n/a (3.08) 4.99 6.49 n/a
CLASS C**
With Sales Charge and CDSC (0.28) (5.22)% n/a n/a n/a n/a
Without Sales Charge and CDSC 1.77 (3.34) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 0.79 n/a (5.02) n/a n/a n/a
Without CDSC 1.77 n/a (4.10) 4.00 n/a 3.09%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
--------- --------- --------- --------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.40 $7.47 $8.08 CLASS A $0.188 $0.055 4.83%
CLASS C 7.39 7.47 n/a CLASS C 0.155 0.055 4.15
CLASS D 7.39 7.47 8.08 CLASS D 0.155 0.055 4.19
------------------------------------------------------------------------------------------------------------------------------
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 95% Aaa/AAA 56%
General Obligation Bondsoo 5 Aa/AA 29
A/A 11
WEIGHTED AVERAGE MATURITY 26.30 years Baa/BBB 4
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
--------------------
See footnotes on page 10.
6
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
INVESTMENT RESULTS PER SHARE
MICHIGAN SERIES
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.75)% n/a (5.37)% 4.39% 6.16% n/a
Without Sales Charge 3.14 n/a (0.61) 5.41 6.68 n/a
CLASS C**
With Sales Charge and CDSC 0.68 (2.95)% n/a n/a n/a n/a
Without Sales Charge and CDSC 2.69 (0.96) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 1.68 n/a (2.45) n/a n/a n/a
Without CDSC 2.69 n/a (1.51) 4.43 n/a 3.40%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN++ SEC YIELD++
--------- --------- --------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $8.05 $8.04 $8.55 CLASS A $0.208 $0.032 4.78%
CLASS C 8.04 8.03 n/a CLASS C 0.172 0.032 4.08
CLASS D 8.04 8.03 8.54 CLASS D 0.172 0.032 4.12
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 73% Aaa/AAA 54%
General Obligation Bondsoo 27 Aa/AA 36
A/A 10
WEIGHTED AVERAGE MATURITY 20.49 years
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
MINNESOTA SERIES
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (3.14)% n/a (6.32)% 3.28% 5.34% n/a
Without Sales Charge 1.73 n/a (1.64) 4.30 5.86 n/a
CLASS C**
With Sales Charge and CDSC (0.66) (4.18)% n/a n/a n/a n/a
Without Sales Charge and CDSC 1.27 (2.24) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 0.29 n/a (3.46) n/a n/a n/a
Without CDSC 1.27 n/a (2.53) 3.36 n/a 2.73%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
--------- --------- --------- ---------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.26 $7.36 $7.80 CLASS A $0.184 $0.041 4.71%
CLASS C 7.26 7.36 n/a CLASS C 0.151 0.041 4.01
CLASS D 7.26 7.36 7.80 CLASS D 0.151 0.041 4.05
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 57% Aaa/AAA 39% Baa/BBB 5%
General Obligation Bondsoo 43 Aa/AA 39 Non-Rated 2
A/A 15
WEIGHTED AVERAGE MATURITY 19.18 years
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
------------------
See footnotes on page 10.
7
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
INVESTMENT RESULTS PER SHARE
MISSOURI SERIES
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (2.52)% n/a (6.44)% 3.96% 5.69% n/a
Without Sales Charge 2.30 n/a (1.74) 4.98 6.20 n/a
CLASS C**
With Sales Charge and CDSC (0.12) (4.13)% n/a n/a n/a n/a
Without Sales Charge and CDSC 1.84 (2.18) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 0.84 n/a (3.58) n/a n/a n/a
Without CDSC 1.84 n/a (2.64) 4.02 n/a 2.93%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
--------- --------- --------- ------------- ---------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.27 $7.29 $7.77 CLASS A $0.177 $0.008 4.57%
CLASS C 7.27 7.29 n/a CLASS C 0.144 0.008 3.88
CLASS D 7.27 7.29 7.77 CLASS D 0.144 0.008 3.92
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 83% Aaa/AAA 51%
General Obligation Bondsoo 17 Aa/AA 31
A/A 15
WEIGHTED AVERAGE MATURITY 21.67 years Baa/BBB 3
NEW YORK SERIES
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (2.78)% n/a (6.95)% 4.74% 6.37% n/a
Without Sales Charge 2.02 n/a (2.32) 5.75 6.90 n/a
CLASS C**
With Sales Charge and CDSC (0.33) (4.47)% n/a n/a n/a n/a
Without Sales Charge and CDSC 1.70 (2.59) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 0.71 n/a (4.12) n/a n/a n/a
Without CDSC 1.70 n/a (3.20) 4.80 n/a 3.41%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
--------- --------- --------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.65 $7.70 $8.24 CLASS A $0.198 $0.005 4.91%
CLASS C 7.66 7.70 n/a CLASS C 0.164 0.005 4.21
CLASS D 7.66 7.70 8.25 CLASS D 0.164 0.005 4.25
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 89% Aaa/AAA 53% Baa/BBB 9%
General Obligation Bondsoo 11 Aa/AA 8 Non-Rated 1
A/A 29
WEIGHTED AVERAGE MATURITY 24.05 years
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
-----------------------
See footnotes on page 10.
8
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
INVESTMENT RESULTS PER SHARE
OHIO SERIES
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
-----------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (3.00)% n/a (6.32)% 3.97% 5.82% n/a
Without Sales Charge 1.82 n/a (1.70) 4.99 6.34 n/a
CLASS C**
With Sales Charge and CDSC (0.52) (3.95)% n/a n/a n/a n/a
Without Sales Charge and CDSC 1.50 (2.06) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 0.51 n/a (3.36) n/a n/a n/a
Without CDSC 1.50 n/a (2.43) 4.11 n/a 3.16%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.56 $7.64 $8.11 CLASS A $0.198 $0.019 4.80%
CLASS C 7.61 7.68 n/a CLASS C 0.165 0.019 4.11
CLASS D 7.61 7.68 8.15 CLASS D 0.165 0.019 4.15
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGS(o)
Revenue Bonds 68% Aaa/AAA 77%
General Obligation Bondsoo 32 Aa/AA 6
A/A 10
WEIGHTED AVERAGE MATURITY 20.90 years Baa/BBB 7
OREGON SERIES
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
AVERAGE ANNUAL
---------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
-------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (3.00)% n/a (6.18)% 4.14% 5.80% n/a
Without Sales Charge 1.80 n/a (1.56) 5.16 6.32 n/a
CLASS C**
With Sales Charge and CDSC (0.70) (3.95)% n/a n/a n/a n/a
Without Sales Charge and CDSC 1.34 (2.02) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 0.36 n/a (3.26) n/a n/a n/a
Without CDSC 1.34 n/a (2.33) 4.21 n/a 3.28%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.38 $7.48 $7.92 CLASS A $0.180 $0.052 4.56%
CLASS C 7.38 7.48 n/a CLASS C 0.147 0.052 3.86
CLASS D 7.38 7.48 7.91 CLASS D 0.147 0.052 3.89
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 77% Aaa/AAA 41%
General Obligation Bondsoo 23 Aa/AA 37
A/A 14
WEIGHTED AVERAGE MATURITY 18.48 years Baa/BBB 8
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
------------------
See footnotes on page 10.
9
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
INVESTMENT RESULTS PER SHARE
SOUTH CAROLINA SERIES
TOTAL RETURNS
FOR PERIODS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------------------------
CLASS C CLASS D
SIX SINCE INCEPTION ONE FIVE 10 SINCE INCEPTION
MONTHS* 5/27/99* YEAR YEARS YEARS 2/1/94
------- --------------- ---- ----- ----- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (2.55)% n/a (6.43)% 4.28% 5.89% n/a
Without Sales Charge 2.28 n/a (1.74) 5.30 6.41 n/a
CLASS C**
With Sales Charge and CDSC (0.21) (4.15)% n/a n/a n/a n/a
Without Sales Charge and CDSC 1.81 (2.26) n/a n/a n/a n/a
CLASS D**
With 1% CDSC 0.83 n/a (3.68) n/a n/a n/a
Without CDSC 1.81 n/a (2.76) 4.32 n/a 3.14%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX*** 2.13 0.26@ (0.08) 6.08 7.15 4.97#
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED MARCH 31, 2000
3/31/00 9/30/99 3/31/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.57 $7.67 $8.18 CLASS A $0.193 $0.076 4.76%
CLASS C 7.56 7.66 n/a CLASS C 0.159 0.076 4.07
CLASS D 7.56 7.66 8.18 CLASS D 0.159 0.076 4.11
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 98% Aaa/AAA 60%
General Obligation Bondsoo 2 Aa/AA 10
A/A 21
WEIGHTED AVERAGE MATURITY 21.77 years Baa/BBB 9
------------------------------------------------------------------------------------------------------------------------------
</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 eachSeries' 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 Brothers Municipal Bond 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 six months ended March
31, 2000.
++ Current yield, representing the annualized yield for the 30-day period
ended March 31, 2000, has been computed in accordance with SEC regulations
and will vary.
o Percentages based on current market values of long-term holdings at March
31, 2000.
oo Includes pre-refunded and escrowed-to-maturity securities.
10
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
NATIONAL SERIES
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
----- ------ --------------- ----------- -----
<S> <C> <C> <C> <C>
ALABAMA--3.6% $4,000,000 Jefferson County Sewer Rev., 5-1/8% due 2/1/2039 .............. Aaa/AAA $ 3,503,040
ALASKA--1.5% 1,500,000 Alaska Housing Finance Corporation Mortgage Rev.,
5-3/4% due 6/1/2024* ....................................... Aaa/AAA 1,444,935
CALIFORNIA--1.7% 1,500,000 San Joaquin Hills Transportation Corridor Agency Rev.
(Orange County Senior Lien Toll Road),
6-3/4% due 1/1/2032o ....................................... Aaa/AAA 1,616,445
FLORIDA--3.7% 4,000,000 Jacksonville Electric Authority (Electric System Rev.),
5.10% due 10/1/2032 ........................................ Aa2/AA 3,543,240
KENTUCKY--2.0% 1,880,000 Trimble County Pollution Control Rev. (Louisville
Gas & Electric Co. Project), 7-5/8% due 11/1/2020* ......... A1/A 1,944,221
MICHIGAN--2.4% 2,250,000 Michigan State Strategic Fund Pollution Control Rev.
(General Motors Corp.), 6.20% due 9/1/2020 ................. A2/A 2,271,938
MISSOURI--4.9% 4,750,000 St. Louis Industrial Development Authority Pollution
Control Rev. (Anheuser-Busch Companies, Inc. Project),
5-7/8% due 11/1/2026* ...................................... A1/A+ 4,671,293
NEVADA--4.5% 5,000,000 Clark County Industrial Development Rev. (Nevada
Power Company Project), 5.90% due 11/1/2032* ............... NR/BBB 4,354,500
NEW YORK--7.4 3,500,000 New York City GOs, 6-1/4% due 4/15/2027 ....................... A3/A- 3,586,975
2,500,000 New York State Mortgage Agency Rev.
(Homeowner Mortgage), 6.35% due 10/1/2030* ................. Aa1/NR 2,565,750
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 975,400
OHIO--3.8% 4,000,000 Ohio Housing Finance Agency Mortgage Rev. (Residential
Mortgage), 5.40% due 9/1/2029* ............................. Aaa/NR 3,658,760
SOUTH 6,000,000 South Dakota Housing Development Authority Rev.
DAKOTA--6.2% (Homeownership Mortgage), 6.15% due 5/1/2026* ................. Aa1/AAA 5,968,740
TENNESSEE--4.8% 5,000,000 Shelby County Health, Educational and Housing
Facility Board Rev. (St. Jude Children's Research Hospital),
5-3/8% due 7/1/2024 ........................................ NR/AA 4,579,050
TEXAS--19.3% 3,700,000 Harris County Health Facilities Development Corp.
Hospital Rev. (St. Luke's Episcopal Hospital Project),
6-3/4% due 2/15/2021 ....................................... Aa3/AAA 3,824,542
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 2,100,160
2,000,000 Harris County Health Facilities Development Corp. SCH
Health Care System Rev. (Sisters of Charity of the
Incarnate Word), 5-3/4% due 7/1/2027++ ..................... Aa3/AAA 2,001,160
4,750,000 Potter County Industrial Development Corp. Pollution
Control Rev. (Southwestern Public Service Company
Project), 5-3/4% due 9/1/2016 .............................. Aaa/AAA 4,816,120
125,000 San Antonio Electric &Gas Rev., 5-1/2% due 2/1/2020 ........... Aa1/AA 129,316
</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.
11
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
NATIONAL SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
----- ------ --------------- ----------- -----
<S> <C> <C> <C> <C>
TEXAS (CONTINUED) $2,375,000 San Antonio Electric & Gas Rev., 5-1/2% due 2/1/2020o .......... Aa1/AA $ 2,302,349
1,975,000 Texas Veterans Housing Assistance GOs, 6.80%
due 12/1/2023* .............................................. Aa1/AA 2,042,091
1,280,000 Travis County Housing Finance Corporation (Single
Family Mortgage Rev.), 6.95% due 10/1/2027 .................. NR/AAA 1,317,043
VIRGINIA--9.5% 5,000,000 Fairfax County Industrial Development Authority
Health Care Rev. (Inova Health System Project),
6% due 8/15/2026 ............................................ Aa2/AA 4,993,000
5,000,000 Pocahontas Parkway Association TollRoad Bonds
(Route 895 Connector), 5-1/2% due 8/15/2028 ................. Baa3/BBB- 4,138,450
WASHINGTON--10.1% 4,325,000 King County Sewer GOs, 6-1/8% due 1/1/2033 ..................... Aaa/AAA 4,368,033
5,520,000 Seattle Water System Rev., 5-5/8% due 8/1/2026 ................. Aaa/AAA 5,346,506
WISCONSIN--6.3% 6,000,000 LaCrosse Resource Recovery Rev. (Northern States Power
Company Project), 6% due 11/1/2021* ......................... A1/AA- 6,028,560
WYOMING--4.1% 4,000,000 Sweetwater County Pollution Control Rev. (Idaho Power
Company Project), 6.05% due 7/15/2026 ....................... A3/A 4,002,120
-----------
TOTAL MUNICIPAL BONDS (Cost $94,217,040)--95.8% ............................................................... 92,093,737
VARIABLE RATE DEMAND NOTES (Cost $1,900,000)--2.0% ............................................................ 1,900,000
OTHER ASSETS LESS LIABILITIES--2.2% ........................................................................... 2,091,197
-----------
NET ASSETS--100.0% ............................................................................................ $96,084,934
===========
</TABLE>
COLORADO SERIES
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------ --------------- ----------- -----
<S> <C> <C> <C>
$ 2,000,000 Adams County, CO Pollution Control Rev. (Public Service Co. of Colorado Project),
5-7/8% due 4/1/2014 .............................................................. Aaa/AAA $ 2,033,760
1,000,000 Boulder, Larimer and Weld Counties,CO (Vrain Valley School District),
5% due 12/15/2022 ................................................................ Aaa/AAA 897,320
1,640,000 Colorado Health Facilities Authority Hospital Improvement Rev.,
(NCMC, Inc. Project), 5-3/4% due 5/15/2024 ....................................... Aaa/AAA 1,618,811
2,250,000 Colorado Health Facilities Authority Rev. (Sisters of Charity of Leavenworth
HealthServices Corporation), 5% due 12/1/2025 .................................... Aaa/AAA 1,973,003
2,000,000 Colorado Health Facilities Authority Rev. (Catholic Health Initiatives),
5% due 12/1/2028 ................................................................. Aa3/AA 1,650,020
1,000,000 Colorado Springs, CO Sales & Use Tax Rev., 5% due 12/1/2015 ......................... A1/AA 948,880
2,350,000 Colorado Springs, CO Utilities Rev., 5-3/8% due 11/15/2026 .......................... Aa2/AA 2,224,346
105,000 Colorado Water Resources & Power Development Authority
(Clean Water Rev.), 6-7/8% due 9/1/2011 .......................................... Aaa/AAA 108,957
2,000,000 Colorado Water Resources & Power Development Authority
(Clean Water Rev.), 6% due 9/1/2014 .............................................. Aaa/AAA 2,050,720
</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.
12
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
COLORADO SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------ --------------- ----------- ---------
<S> <C> <C> <C>
$ 2,000,000 Denver, CO City & County Department of Aviation Airport System Rev.,
5-1/2% due 11/15/2025 ........................................................... Aaa/AAA $ 1,915,180
2,200,000 Denver, CO City & County School District GOs, 5% due 12/1/2023 ..................... Aaa/AAA 1,948,980
2,000,000 Denver, CO Health and Hospital Authority Healthcare Rev., 5-3/8% due 12/1/2028 ..... Baa2/BBB 1,574,580
1,985,000 Fort Collins, CO GOs Water Bonds, 6-3/8% due 12/1/2012o ............................ Aa1/AA 2,083,635
2,500,000 Fort Collins Pollution Control Rev. (Anheuser-Busch Project), 6% due 9/1/2031 ...... A1/A+ 2,497,375
1,000,000 Fountain Valley Authority, CO Water Treatment Rev., 6.80% due 12/1/2019o ........... Aa2/AA 1,027,070
2,250,000 Jefferson County, CO Open Space Sales Tax Rev., 5% due 11/1/2019 ................... Aaa/AAA 2,045,745
1,755,000 Northglenn, CO GOs Joint Water & Wastewater Utility, 6.80% due 12/1/2008 ........... Aaa/NR 1,869,654
2,500,000 Platte River Power Authority, CO Power Rev., 6-1/8% due 6/1/2014 ................... Aa3/AA- 2,574,100
1,055,000 Pueblo County, CO Single Family Mortgage Rev., 7.05% due 11/1/2027 ................. NR/AAA 1,090,722
2,000,000 Puerto Rico Highway & Transportation Authority Rev., 5-1/2% due 7/1/2036 ........... Baa1/A 1,895,800
2,000,000 University of Colorado Hospital Authority Rev., 5-1/4% due 11/15/2022 .............. Aaa/NR 1,843,340
2,000,000 Virgin Islands Public Finance Authority Rev., 5-1/2% due 10/1/2022 ................. NR/BBB- 1,795,680
2,000,000 Westminster, CO (Adams & Jefferson Counties) Sales & Use Tax Rev.,
7% due 12/1/2008 ................................................................ Aaa/AAA 2,054,640
-----------
TOTAL MUNICIPAL BONDS (Cost $40,845,816)--97.7% ........................................................... 39,722,318
VARIABLE RATE DEMAND NOTES (Cost $200,000)--0.5% .......................................................... 200,000
OTHER ASSETS LESS LIABILITIES--1.8% ....................................................................... 748,084
-----------
NET ASSETS--100.0% ........................................................................................ $40,670,402
===========
</TABLE>
GEORGIA SERIES
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------ --------------- ----------- ---------
<S> <C> <C> <C>
$ 2,000,000 Atlanta, GA Airport Rev., 5-5/8% due 1/1/2030* .................................... Aaa/AAA $ 1,909,640
2,500,000 Atlanta, GA Water & Wastewater Rev., 5% due 11/1/2038 ............................. Aaa/AAA 2,148,925
1,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 7.40% due 11/1/2010* ......................................... A1/A+ 1,131,090
2,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 6-3/4% due 2/1/2012* ......................................... A1/A+ 2,095,480
2,000,000 Chatham County, GA School District GOs, 5-1/2% due 8/1/2020 ....................... Aaa/AAA 1,959,100
1,000,000 DeKalb County, GA GOs, 5-1/4% due 1/1/2020 ........................................ Aa1/AA+ 945,850
2,000,000 DeKalb County, GA Water & Sewerage Rev., 5% due 10/1/2028 ......................... Aa2/AA 1,760,820
1,000,000 Fulco Hospital Authority HealthSystem Rev. (Catholic Health East),
5% due 11/15/2028 .............................................................. Aaa/AAA 860,430
1,820,000 Fulton County, GA Development Authority Special Facilities Rev.,
(Delta Airlines, Inc. Project), 5-1/2% due 5/1/2033* ........................... Baa3/BBB- 1,526,580
2,250,000 Georgia Housing & Finance Authority (Single Family Mortgage),
5.20% due 6/1/2029* ............................................................ NR/AAA 1,989,270
</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.
13
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
GEORGIA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- --------------- ----------- -------
<S> <C> <C> <C>
$ 2,000,000 Georgia Housing & Finance Authority (Single Family Mortgage),
6.10% due 6/1/2031* .......................................................... NR/AAA $ 2,004,900
2,500,000 Georgia Municipal Gas Authority Rev. (Southern Storage Gas Project),
6.40% due 7/1/2014 ........................................................... NR/A- 2,502,875
1,000,000 Georgia State GOs, 5-3/4% due 2/1/2011 .......................................... Aaa/AAA 1,030,810
1,000,000 Gwinnett County, GA School District GOs, 6.40% due 2/1/2012 ..................... Aa1/AA+ 1,116,800
2,250,000 Gwinnett County, GA Water & Sewerage Authority Rev., 5.30% due 8/1/2022 ......... Aaa/AAA 2,132,032
1,500,000 Henry County School District, GA GOs, 6.45% due 8/1/2011 ........................ A1/A+ 1,640,235
500,000 Metropolitan Atlanta Rapid Transit Authority, GA Sales Tax Rev.,
6-1/4% due 7/1/2018 .......................................................... A1/AA- 536,925
2,000,000 Monroe County, GA Development Authority Pollution Control Rev.
(Georgia Power Company Plant--Scherer Project), 6% due 7/1/2025 .............. Aaa/AAA 2,003,100
2,500,000 Peachtree City, GA Water & Sewerage Authority Sewer System Rev.,
5.60% due 3/1/2027 ........................................................... Aa3/AA 2,438,475
2,000,000 Private Colleges & Universities Authority Rev., GA (Spelman College Project),
6.20% due 6/1/2014 ........................................................... Aaa/AAA 2,094,540
1,500,000 Private Colleges & Universities Authority Rev., GA (Mercer University Project),
6-1/2% due 11/1/2015++ ....................................................... Aaa/AAA 1,663,305
3,000,000 Private Colleges & Universities Authority Rev., GA (Agnes Scott College Project),
5-5/8% due 6/1/2023 .......................................................... A1/AA 2,933,280
1,000,000 Private Colleges & Universities Authority Rev., GA (Mercer University Project),
5-3/8% due 10/1/2029 ......................................................... A3/NR 892,610
1,500,000 Puerto Rico Highway & Transportation Authority Rev., 5-1/2% due 7/1/2026 ........ Baa1/A 1,435,665
1,000,000 Savannah, GA Airport Rev., 6-1/4% due 1/1/2015* ................................. Aaa/AAA 1,021,940
-----------
TOTAL MUNICIPAL BONDS (Cost $42,237,639)--101.8% ...................................................... 41,774,677
VARIABLE RATE DEMAND NOTES (Cost $600,000)--1.5% ...................................................... 600,000
OTHER ASSETS LESS LIABILITIES--(3.3)% ................................................................. (1,360,884)
-----------
NET ASSETS--100.0% .................................................................................... $41,013,793
===========
</TABLE>
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+ $ 3,126,510
2,500,000 Calcasieu Parish, LA Industrial Development Board (Conoco Inc. Project),
5-3/4% due 12/1/2026* ........................................................ Aa3/AA- 2,397,900
1,570,000 East Baton Rouge Parish, LA Mortgage Finance Authority (Single Family
Mortgage Rev.), 5.40% due 10/1/2025 .......................................... Aaa/NR 1,426,879
3,000,000 East Baton Rouge Parish, LA Public Improvement Sales & Use Tax Rev.,
5.90% due 2/1/2018 ........................................................... Aaa/AAA 3,060,870
</TABLE>
-------------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
14
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
LOUISIANA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------ --------------- ----------- --------
<S> <C> <C> <C>
$ 2,000,000 Jefferson Parish, LA Home Mortgage Authority (Single Family Mortgage Rev.),
6% due 12/1/2024* ................................................................ Aa/NR $ 1,947,120
2,000,000 Jefferson Parish, LA Hospital Service District Rev., 5% due 7/1/2028 ................ Aaa/AAA 1,715,480
2,500,000 Lafayette, LA Public Improvement Sales Tax, 5% due 5/1/2021 ......................... Aaa/AAA 2,227,675
2,495,000 Louisiana Housing Finance Agency Mortgage Rev. (Single Family),
6.45% due 6/1/2027* .............................................................. Aaa/AAA 2,575,514
2,500,000 Louisiana Public Facilities Authority Hospital Rev. (Franciscan Missionaries
of Our Lady Health System Project), 5% due 7/1/2025 .............................. Aaa/AAA 2,165,100
2,500,000 Louisiana Public Facilities Authority Rev. (Loyola University Project),
5-5/8% due 10/1/2016 ............................................................. Aaa/AAA 2,513,700
3,000,000 Louisiana Public Facilities Authority Rev. (Tulane University),
5-3/4% due 2/15/2021 ............................................................. Aaa/AAA 2,978,160
1,500,000 Louisiana State GOs, 5% due 4/15/2018 ............................................... Aaa/AAA 1,373,100
2,500,000 Ouachita Parish, LA Hospital Service District Rev. (Glenwood Regional
Medical Center), 5-3/4% due 5/15/2021 ............................................ Aaa/AAA 2,460,775
185,000 Ouachita Parish, LA Industrial Development Rev. (International Paper Company),
6-1/2% due 4/1/2006 .............................................................. NR/NR 185,161
2,500,000 Saint Bernard Parish, LA Exempt Facility Rev. (Mobil Oil Corporation Project),
5.90% due 11/1/2026* ............................................................. Aaa/AA 2,457,700
1,250,000 Saint Charles Parish, LA Environmental Improvement Rev. (Louisiana Power
and Light Company Project), 6.20% due 5/1/2023* .................................. Baa2/BBB 1,175,612
2,960,000 Saint Charles Parish, LA Waterworks & Wastewater District Utility Rev.,
7.15% due 7/1/2016 ............................................................... Aaa/AAA 3,101,310
2,500,000 Shreveport, LA Airport System Rev., 5-3/8% due 1/1/2024* ............................ Aaa/AAA 2,300,325
1,555,000 Shreveport, LA GOs, 7-1/2% due 4/1/2006++ ........................................... Aaa/AAA 1,743,279
2,750,000 Shreveport, LA GOs, 5% due 3/1/2019 ................................................. Aaa/AAA 2,499,173
2,050,000 Sulphur, LA Housing & Mortgage Finance Trust (Residential Mortgage Rev.),
7-1/4% due 12/1/2010 ............................................................. Aaa/AAA 2,269,514
2,500,000 Tangipahoa Parish, LA Hospital Service District No. 1 Rev. (Northoaks
Medical Center), 6-1/4% due 2/1/2024 ............................................. Aaa/AAA 2,542,400
------------
TOTAL MUNICIPAL BONDS (Cost $48,675,833)--97.6% .............................................................. 48,243,257
VARIABLE RATE DEMAND NOTES (Cost $200,000)--0.4% ............................................................. 200,000
OTHER ASSETS LESS LIABILITIES--2.0% .......................................................................... 973,512
------------
NET ASSETS--100.0% ........................................................................................... $49,416,769
============
</TABLE>
MARYLAND SERIES
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------ --------------- ----------- --------
<S> <C> <C> <C>
$1,000,000 Anne ArundelCounty, MD GOs, 5-1/8% due 2/1/2026 ..................................... Aa2/AA+ $ 914,100
1,340,000 Anne ArundelCounty, MD GOs, 5-1/8% due 2/1/2027 ..................................... Aa2/AA+ 1,222,817
</TABLE>
-------------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
* Interest income earned from this security is subject to the federal
alternative minimum tax.
See Notes to Financial Statements.
15
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
MARYLAND SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------- -----------
<S> <C> <C> <C>
$ 3,000,000 Anne Arundel County, MD Pollution Control Rev. (Baltimore Gas and Electric
Company Project), 6% due 4/1/2024 ............................................... A2/A $ 2,996,220
2,000,000 Baltimore, MD Consolidated Public Improvement GOs, 6-3/8% due 10/15/2006 ........... Aaa/AAA 2,159,820
2,500,000 Baltimore, MD Port Facilities Rev. (Consolidated Coal Sales Co. Project),
6-1/2% due 10/1/2011 ............................................................ Aa3/AA- 2,636,525
2,000,000 Baltimore, MD Project and Refunding Rev. (Water Projects), 5-1/2% due 7/1/2026 ..... Aaa/AAA 1,927,240
1,000,000 Howard County, MD Metropolitan District Project GOs, 5-1/2% due 8/15/2022 .......... Aaa/AAA 984,750
2,000,000 Maryland Community Development Administration Dept. of Housing &
Community Development (Multi-Family Housing), 7.70% due 5/15/2020* .............. Aa/NR 2,067,200
2,420,000 Maryland Community Development Administration Dept. of Housing &
Community Development (Single Family Program), 6.80% due 4/1/2024* .............. Aa2/NR 2,482,654
2,500,000 Maryland Community Development Administration Dept. of Housing &
Community Development (Multi-Family Housing), 6.70% due 5/15/2027 ............... Aa/NR 2,589,550
2,250,000 Maryland Community Development Administration Dept. of Housing &
Community Development (Residential Rev.), 6.15% due 9/1/2032* ................... Aa2/NR 2,251,440
2,710,000 Maryland Health & Higher Educational Facilities Authority Rev. (Good Samaritan
Hospital), 5-3/4% due 7/1/2019++ ................................................ Aaa/AAA 2,732,899
2,000,000 Maryland Health & Higher Educational Facilities Authority Rev.
(Suburban Hospital), 5-1/8% due 7/1/2021 ........................................ A1/A+ 1,683,360
2,750,000 Maryland Health & Higher Educational Facilities Authority Rev.
(Anne Arundel Medical Center), 5% due 7/1/2023 .................................. Aaa/AAA 2,448,353
2,500,000 Maryland Health & Higher Educational Facilities Authority Rev. (Francis Scott Key
Medical Center), 5% due 7/1/2023 ................................................ Aaa/AAA 2,225,775
2,000,000 Maryland Health & Higher Educational Facilities Authority Rev.
(Mercy Medical Center), 5-3/4% due 7/1/2026 ..................................... Aaa/AAA 1,989,060
1,500,000 Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel
Medical Center), 5-1/8% due 7/1/2028 ............................................ Aaa/AAA 1,353,105
1,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Charity
Obligated Group), 5% due 11/1/2029 .............................................. Aa2/AA 875,980
2,000,000 Maryland Transportation Authority Rev. (Baltimore/Washington International
Airport Project), 6-1/4% due 7/1/2014* .......................................... Aaa/AAA 2,085,740
2,000,000 Maryland Transportation Authority Rev. Transportation Facilities Projects,
5-3/4% due 7/1/2015 ............................................................. A1/A+ 2,017,400
1,000,000 Maryland Water Quality Financing Administration Revolving Loan Fund Rev.,
7.10% due 9/1/2013o ............................................................. Aaa/AAA 1,054,730
220,000 Montgomery County, MD Housing Opportunities Commission (Single Family
Mortgage Rev.), 7-3/8% due 7/1/2017 ............................................. Aa2/NR 224,101
1,390,000 Montgomery County, MD Housing Opportunities Commission Rev.,
6.20% due 7/1/2026* ............................................................. Aa2/NR 1,394,281
2,000,000 Northeast Maryland Waste Disposal Authority Solid Waste Rev.
(Montgomery County Resource Recovery Project), 6.30% due 7/1/2016* .............. A2/NR 2,041,220
</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.
16
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
MARYLAND SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------- -----------
<S> <C> <C> <C>
$ 1,000,000 Puerto Rico Highway & Transportation Authority Rev., 5-1/2% due 7/1/2036 ........... Baa1/A $ 947,900
630,000 Puerto Ric Housing Finance Corporation (Single Family Mortgage Rev.
Portfolio 1-C), 6.85% due 10/15/2023 ............................................ Aaa/AAA 654,992
2,000,000 Washington Suburban Sanitary District, MD, 6-1/2% due 1/1/2016 ..................... Aa1/AA 2,087,200
------------
TOTAL MUNICIPAL BONDS (Cost $47,576,545)--98.2% ............................................................... 48,048,412
OTHER ASSETS LESS LIABILITIES--1.8% ........................................................................... 857,831
------------
NET ASSETS--100.0% ............................................................................................ $48,906,243
============
</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., 5-1/4% due 11/1/2019 .............. A1/A+ $ 4,776,950
5,000,000 Massachusetts Bay Transportation Authority General Transportation System
Rev., 5-3/4% due 3/1/2026 ........................................................ Aa2/AA- 4,959,800
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Newton-Wellesley
Hospital), 6% due 7/1/2018 ....................................................... Aaa/AAA 5,040,350
3,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Williams College),
5-3/4% due 7/1/2019 .............................................................. Aaa/AA+ 3,501,925
5,100,000 Massachusetts Health & Educational Facilities Authority Rev. (Smith College),
5-3/4% due 7/1/2024 .............................................................. Aa1/AA 4,975,764
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Partners Healthcare
System), 5-3/8% due 7/1/2024 ..................................................... Aaa/AAA 4,596,900
4,000,000 Massachusetts Health & Educational Facilities Authority Rev.
(Harvard University), 5-5/8% due 11/1/2028 ....................................... Aaa/AAA 3,941,600
5,000,000 Massachusetts Health & Educational Facilities Authority Rev.
(South Shore Hospital), 5-3/4% due 7/1/2029 ...................................... A2/A 4,434,250
5,000,000 Massachusetts Housing Finance (Rental Housing Mortgage Rev.),
5-1/2% due 7/1/2030* ............................................................. Aaa/AAA 4,498,950
4,985,000 Massachusetts Housing Finance Agency Rev. (Single Family Housing),
5-1/2% due 12/1/2030* ............................................................ Aaa/AAA 4,563,518
2,000,000 Massachusetts Industrial Finance Agency Electric Utility Rev. (Nantucket Electric
Company Project), 5-7/8% due 7/1/2017* ........................................... Aaa/AAA 2,004,320
3,500,000 Massachusetts Industrial Finance Agency Rev. (Phillips Academy),
5-3/8% due 9/1/2023 .............................................................. Aaa/AA+ 3,306,310
3,000,000 Massachusetts Industrial Finance Agency Rev. (College of the Holy Cross),
5-5/8% due 3/1/2026 .............................................................. Aaa/AAA 2,918,130
2,000,000 Massachusetts Industrial Finance Agency Rev. (Suffolk University),
5-1/4% due 7/1/2027 .............................................................. Aaa/AAA 1,841,900
2,400,000 Massachusetts Port Authority Rev., 5% due 7/1/2023 .................................. Aa3/AA- 2,131,176
</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.
17
<PAGE>
MASSACHUSETTS SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------ -----------
<S> <C> <C> <C>
$2,000,000 Massachusetts Port Authority Rev., 5% due 7/1/2028* .................................... Aa3/AA- $ 1,727,520
3,000,000 Massachusetts Port Authority Special Facilities Rev. (BOSFUEL Project),
5-3/4% due 7/1/2039* ................................................................ Aaa/AAA 2,878,260
2,000,000 Massachusetts State Consolidated Loan GOs, 5% due 5/1/2019 ............................. Aa2/AA- 1,816,680
2,500,000 Massachusetts State Consolidated Loan GOs, 5-7/8% due 2/1/2020 ......................... Aa2/AA- 2,532,750
5,000,000 Massachusetts Water Pollution Abatement Trust Pool Program,
5-1/2% due 8/1/2029 ................................................................. Aaa/AAA 4,816,550
4,500,000 Massachusetts Water Resources Authority Rev., 5-3/4% due 8/1/2039 ...................... Aaa/AAA 4,437,450
5,000,000 Plymouth County, MA Certificates of Participation (Plymouth County
Correctional Facility Project), 5% due 4/1/2022 ..................................... Aaa/AAA 4,404,750
4,000,000 Puerto Rico Highway & Transportation Authority Rev., 5-1/2% due 7/1/2036 ............... Baa1/A 3,791,600
2,750,000 Puerto Rico Port Authority Rev., 6% due 7/1/2021* ...................................... Aaa/AAA 2,758,223
-----------
TOTAL MUNICIPAL BONDS (Cost $88,308,841)--96.2% .................................................................. 86,655,626
VARIABLE RAT DEMAND NOTES (Cost $2,200,000)--2.5% ................................................................ 2,200,000
OTHER ASSETS LESS LIABILITIES--1.3% .............................................................................. 1,206,135
-----------
NET ASSETS--100.0% ............................................................................................... $90,061,761
===========
</TABLE>
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 $ 5,249,150
5,000,000 Detroit, MI GOs, 5-1/2% due 4/1/2016 .................................................. Aaa/AAA 4,973,700
6,000,000 Detroit, MI Water Supply System Rev., 6-1/4% due 7/1/2012o ............................ Aaa/AAA 6,297,360
3,000,000 Grand Haven, MI Electric System Rev., 5-1/4% due 7/1/2013 ............................. Aaa/AAA 2,968,710
5,000,000 Grand Rapids, MI Water Supply System Rev., 5-3/4% due 1/1/2018 ........................ Aaa/AAA 5,003,100
2,000,000 Grand Traverse County, MI Hospital Finance Authority (Munson Healthcare
Obligated Group), 5% due 7/1/2028 ................................................... Aaa/NR 1,708,300
2,500,000 Kalamazoo, MI Hospital Finance Authority Rev. (Bronson Methodist
Hospital), 5-1/2% due 5/15/2028 ..................................................... Aaa/NR 2,341,600
5,000,000 Kent County, MI Airport Rev., 6.10% due 1/1/2025*o .................................... Aa/AAA 5,330,550
1,850,000 Kent County, MI Airport Rev., 5% due 1/1/2028* ........................................ Aaa/AAA 1,582,472
2,775,000 Kentwood, MI Public Schools Building & Site GOs, 6.40% due 5/1/2015o .................. Aa2/A+ 2,916,525
3,000,000 Lansing, MI Building Authority Rev., 5.60% due 6/1/2019 ............................... Aa3/AA+ 2,971,920
3,250,000 Marquette, MI Hospital Finance Authority Rev. (Marquette General Hospital),
6.10% due 4/1/2019 .................................................................. Aaa/AAA 3,305,478
3,000,000 Michigan Public Power Agency Rev. (Belle River Project), 5-1/4% due 1/1/2018 .......... A1/AA- 2,818,350
3,000,000 Michigan State Building Authority Rev., 6-1/4% due 10/1/2020 .......................... Aa2/AA 3,054,540
5,000,000 Michigan State GOs (Environmental Protection Program), 5.40% due 11/1/2019 ............ Aa1/AA+ 4,835,550
</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.
18
<PAGE>
MICHIGAN SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------ ---------
<S> <C> <C> <C>
$ 5,000,000 Michigan State Hospital Finance Authority Rev. (Oakwood Obligated Group),
5-1/8% due 8/15/2025 ......................................................... Aaa/AAA $ 4,427,250
5,250,000 Michigan State Hospital Finance Authority Rev. (Mercy Health Services
Obligated Group), 5-3/4% due 8/15/2026 ....................................... Aa3/AA- 5,076,855
6,000,000 Michigan State Hospital Finance Authority Rev. (Ascension Health Credit Group),
6-1/8% due 11/15/2026 ........................................................ Aa2/AA 6,011,100
5,000,000 Michigan State Hospital Finance Authority Rev. (Sparrow Obligated Group),
6% due 11/15/2036 ............................................................ Aaa/AAA 4,970,200
895,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.80% due 12/1/2016 .......................................................... NR/AA+ 911,055
3,925,000 Michigan State Housing Development Authority Rev. (Rental Housing),
6.65% due 4/1/2023 ........................................................... NR/AA- 4,060,177
4,000,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.05% due 12/1/2027 .......................................................... NR/AA+ 3,999,600
3,000,000 Michigan State Strategic Fund Pollution Control Rev. (Detroit Edison Company),
6-1/2% due 2/15/2016 ......................................................... Aaa/AAA 3,130,110
6,000,000 Michigan State Strategic Fund Pollution Control Rev. (General Motors Corp.),
6.20% due 9/1/2020 ........................................................... A2/A 6,058,500
5,000,000 Michigan State Trunk Line Rev., 5% due 11/1/2026 ................................ Aaa/AAA 4,405,700
6,300,000 Oxford, MI Area Community Schools GOs, 5-1/2% due 5/1/2021 ...................... Aaa/AAA 6,123,600
5,000,000 Royal Oak, MI Hospital Finance Authority Rev. (William Beaumont Hospital),
5-1/4% due 1/1/2020 .......................................................... Aa3/AA 4,531,400
1,000,000 University of Michigan Hospital Rev., 6-3/8% due 12/1/2024o ..................... Aa2/AA 1,014,090
5,000,000 Western Michigan State University Rev., 5-1/8% due 11/15/2022 ................... Aaa/AAA 4,543,450
3,000,000 Wyandotte, MI Electric Rev., 6-1/4% due 10/1/2017 ............................... Aaa/AAA 3,085,020
------------
TOTAL MUNICIPAL BONDS (Cost $117,437,729)--97.4% .......................................................... 117,705,412
VARIABLE RATE DEMAND NOTES (Cost $1,200,000)--1.0% ........................................................ 1,200,000
OTHER ASSETS LESS LIABILITIES--1.6% ....................................................................... 1,998,379
------------
NET ASSETS--100.0% ........................................................................................ $120,903,791
============
</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+ $ 5,055,850
1,500,000 Buffalo, MN Independent School District GOs, 6.15% due 2/1/2022o ................ Aaa/AAA 1,552,530
2,250,000 Burnsville-Eagan-Savage, MN Independent School District GOs,
5-1/8% due 2/1/2016 .......................................................... Aa1/NR 2,163,915
2,350,000 Burnsville-Eagan-Savage, MN Independent School District GOs,
5-1/8% due 2/1/2017 .......................................................... Aa1/NR 2,244,180
1,500,000 Cloquet, MN Pollution Control Rev. (Potlatch Corporation Projects),
5.90% due 10/1/2026 .......................................................... NR/BBB+ 1,354,695
</TABLE>
--------------
+ Ratings have not been audited by Deloitte & Touche LLP.
o Pre-refunded security.
See Notes to Financial Statements.
19
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
MINNESOTA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------ ------------
<S> <C> <C> <C>
$ 2,000,000 Cuyana Range Hospital District, MN Health Facilities Rev., 6% due 6/1/2029 ............ NR/NR $ 1,659,660
3,545,000 Fridley, MNIndependent School District GOs, 5.35% due 2/1/2021 ........................ Aaa/AAA 3,405,362
1,500,000 Minneapolis, MNGOs, 6% due 3/1/2016 ................................................... Aaa/AAA 1,521,405
4,725,000 Minneapolis, MN Rev. (University Gateway Project), 5-1/4% due 12/1/2024 ............... Aa2/AA 4,409,322
3,000,000 Minneapolis, MN Special School District GOs, 5% due 2/1/2014 .......................... Aa1/AA+ 2,892,390
5,000,000 Minneapolis-St. Paul, MN Housing & Redevelopment Authority Health Care
Rev. (Children's Health Care), 5-1/2% due 8/15/2025 ................................. Aaa/AAA 4,738,150
4,000,000 Minneapolis-St. Paul, MN Metropolitan Airport Commission Rev.,
5% due 1/1/2030 ..................................................................... Aaa/AAA 3,507,760
2,250,000 Minnesota Agricultural & Economic Development Board Rev. (Evangelical
Lutheran Good Samaritan Society Project), 5.15% due 12/1/2022 ....................... Aaa/AAA 2,062,418
1,250,000 Minnesota Agricultural & Economic Development Board Rev. (Evangelical
Lutheran Good Samaritan Society Project), 5% due 12/1/2023 .......................... Aaa/AAA 1,113,212
3,000,000 Minnesota Agricultural & Economic Development Board Health Care Facilities
Rev. (Benedictine Health System--St. Mary's Duluth Clinic Health System
Obligated Group), 5-1/8% due 2/15/2029 .............................................. Aaa/AAA 2,675,460
2,775,000 Minnesota Higher Education Facilities Authority Rev. (University of St. Thomas),
5.40% due 4/1/2022 .................................................................. A2/NR 2,613,079
2,000,000 Minnesota Higher Education Facilities Authority Rev. (St. John's University),
5.40% due 10/1/2022 ................................................................. A3/NR 1,870,180
1,775,000 Minnesota Higher Education Facilities Authority Rev. (University of St. Thomas),
5.40% due 4/1/2023 .................................................................. A2/NR 1,664,914
2,500,000 Minnesota Higher Education Facilities Authority Rev. (St. Olaf College),
5-1/4% due 4/1/2029 ................................................................. A3/NR 2,240,625
450,000 Minnesota Housing Finance Agency (Housing Development), 6-1/4% due 2/1/2020 ........... Aa2/AA 454,972
795,000 Minnesota Housing Finance Agency (Single Family Mortgage),
5.65% due 7/1/2022* ................................................................. Aa2/AA+ 737,100
4,780,000 Minnesota Housing Finance Agency (Single Family Mortgage),
6.85% due 1/1/2024* ................................................................. Aa2/AA+ 4,877,847
4,000,000 Minnesota Public Facilities Authority Water Pollution Control Rev.,
6-1/4% due 3/1/2015o ................................................................ Aaa/AAA 4,236,800
5,000,000 Minnesota State GOs, 5.70% due 5/1/2016 ............................................... Aaa/AAA 5,078,700
5,000,000 North Saint Paul-Maplewood, MN Independent School District GOs,
5-1/8% due 2/1/2025 ................................................................. Aa1/AA+ 4,595,900
2,500,000 Northfield, MN Independent School District GOs, 5-1/4% due 2/1/2017 ................... Aa1/NR 2,429,075
4,000,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo
Medical Center), 7.45% due 11/15/2006o .............................................. NR/AA+ 4,078,920
4,500,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo
Medical Center), 6-1/4% due 11/15/2014 .............................................. NR/AA+ 4,667,310
2,575,000 Rochester, MN Independent School District GOs, 5-5/8% due 2/1/2016o ................... Aaa/AA+ 2,652,739
2,715,000 Rochester, MN Independent School District GOs, 5-5/8% due 2/1/2017o ................... Aaa/AA+ 2,796,966
</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.
20
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
MINNESOTA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------ ------------
<S> <C> <C> <C>
$ 4,500,000 Saint Paul, MN Housing and Redevelopment Health Care Rev.,
(Regions Hospital Project), 5.30% due 5/15/2028 ..................................... NR/BBB+ $ 3,437,370
45,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9-1/8% due 10/1/2000 ................................................................ NR/CCC 44,981
5,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9-1/8% due 12/1/2000 ................................................................ NR/CCC 4,994
55,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9-1/8% due 12/1/2000 ................................................................ NR/CCC 54,935
50,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9-1/8% due 10/1/2001 ................................................................ NR/CCC 49,915
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9-1/8% due 12/1/2001 ................................................................ NR/CCC 9,987
55,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9-1/8% due 12/1/2001 ................................................................ NR/CCC 54,929
5,000 Saint Paul Port Authority, MN Industrial Development Rev. Series L,
9-3/4% due 12/1/2001 ................................................................ NR/CCC 5,001
50,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9-1/8% due 10/1/2002 ................................................................ NR/CCC 49,771
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9-1/8% due 12/1/2002 ................................................................ NR/CCC 9,943
60,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9-1/8% due 12/1/2002 ................................................................ NR/CCC 59,659
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series L,
9-3/4% due 12/1/2002 ................................................................ NR/CCC 9,964
1,500,000 Southern Minnesota Municipal Power Agency--Power Supply System Rev.,
5-3/4% due 1/1/2018 ................................................................. A2/A+ 1,483,410
8,700,000 Western Minnesota Municipal Power Agency--Power Supply Rev.,
6-3/8% due 1/1/2016++ ............................................................... Aaa/AAA 9,352,761
------------
TOTAL MUNICIPAL BONDS (Cost $101,783,242)--96.9% .................................................................. 99,979,056
VARIABLE RATE DEMAND NOTES (Cost $1,800,000)--1.7% ................................................................ 1,800,000
OTHER ASSETS LESS LIABILITIES--1.4% ............................................................................... 1,419,586
------------
NET ASSETS--100.0% ................................................................................................ $103,198,642
============
MISSOURI SERIES
<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., 6-1/8% due 10/1/2012o ........ A1/AA $ 2,101,380
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 2,386,950
1,500,000 Hannibal, MO Industrial Development Authority Health Facilities Rev.
(Hannibal Regional Hospital), 5-3/4% due 3/1/2022 ................................... Aaa/AAA 1,474,245
</TABLE>
----------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
o Pre-refunded security.
See Notes to Financial Statements.
21
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
MISSOURI SERIES
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------ ------------
<S> <C> <C> <C>
$ 2,000,000 Missouri Development Finance Board Solid Waste Disposal Rev. (The Procter &
Gamble Company Paper Products Project), 5.20% due 3/15/2029* ........................ Aa2/AA $ 1,784,920
110,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7-3/8% due 3/1/2006 ................................................................. Aaa/AAA 111,036
305,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7% due 3/1/2006 ..................................................................... Aaa/AAA 308,395
1,000,000 Missouri State Environmental Improvement & Energy Resources Authority Rev.
(State Revolving Fund Program), 6.55% due 7/1/2014 .................................. Aaa/NR 1,048,870
2,500,000 Missouri State Environmental Improvement & Energy Resources Authority Rev.
(Union Electric Company Project), 5.45% due 10/1/2028* .............................. A1/AA- 2,280,725
1,000,000 Missouri State Environmental Improvement & Energy Resources Authority--
Water Pollution Control Rev. (State Revolving Fund Program),
5.40% due 7/1/2015 .................................................................. Aaa/NR 994,780
2,000,000 Missouri State GOs, 5-5/8% due 4/1/2017 ............................................... Aaa/AAA 2,029,440
2,500,000 Missouri State Health & Educational Facilities Authority Rev. (Lester E. Cox
Medical Centers Project), 5-1/4% due 6/1/2015 ....................................... Aaa/AAA 2,428,550
1,500,000 Missouri State Health & Educational Facilities Authority Rev. (Sisters of Mercy
Health System, St. Louis, Inc.), 6-1/4% due 6/1/2015 ................................ Aa1/AA+ 1,535,640
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+ 883,810
2,500,000 Missouri State Health & Educational Facilities Authority Rev. (SSM Health Care),
5% due 6/1/2022 ..................................................................... Aaa/AAA 2,229,200
2,400,000 Missouri State Health & Educational Facilities Authority Rev.
(St. Louis University), 5.20% due 10/1/2026 ......................................... Aaa/AAA 2,198,712
2,500,000 Missouri State Health & Educational Facilities Authority Rev.
(The Washington University), 5% due 11/15/2037 ...................................... Aa1/AA+ 2,124,975
820,000 Missouri State Housing Development Commission Housing Development Bonds
(Federally Insured Mortgage Loans), 6% due 10/15/2019 ............................... Aa2/AA+ 819,041
2,205,000 Missouri State Housing Development Commission Single Family Mortgage Rev.
(Homeownership Loan Program), 5.90% due 9/1/2028* ................................... NR/AAA 2,137,019
1,000,000 Puerto Rico Highway & Transportation Authority Rev., 5-1/2% due 7/1/2026 Baa1/A 957,110
1,500,000 St. Charles County, MO Certificates of Participation (Public Water Supply),
5.10% due 12/1/2025 ................................................................. Aaa/NR 1,352,266
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+ 1,682,490
1,500,000 St. Louis, MO Municipal Finance Corporation City Justice Center Leasehold
Improvement Rev., 5.95% due 2/15/2016 ............................................... Aaa/AAA 1,541,580
2,400,000 Southeast Missouri Correctional Facility Lease Rev. (Missouri State Project),
5-3/4% due 10/15/2016 ............................................................... Aa2/NR 2,471,832
2,750,000 University of Missouri Systems Facilities Rev., 5-1/2% due 11/1/2023 .................. Aa2/AA+ 2,658,260
-----------
TOTAL MUNICIPAL BONDS (Cost $40,173,555)--98.1% ................................................................... 39,541,226
OTHER ASSETS LESS LIABILITIES--1.9% ............................................................................... 760,083
-----------
NET ASSETS--100.0% ................................................................................................ $40,301,309
===========
</TABLE>
----------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity 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
MARCH 31, 2000
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.,
5-1/2% due 12/1/2029 ................................................................ Baa1/A- $ 2,308,050
2,000,000 Metropolitan Transportation Authority, NY (Dedicated Tax Fund),
5% due 4/1/2023 ..................................................................... Aaa/AAA 1,777,320
2,000,000 New York City Municipal Water Finance Authority, NY Water & Sewer
System Rev., 6-1/4% due 6/15/2020o .................................................. Aaa/AAA 2,157,600
4,000,000 New York City Municipal Water Finance Authority, NY Water & Sewer
System Rev., 5-1/8% due 6/15/2030 ................................................... Aaa/AAA 3,544,480
1,340,000 New York City, NY GOs, 7-1/4% due 8/15/2024o .......................................... Aaa/A- 1,389,325
5,000 New York City, NY GOs, 7-1/4% due 8/15/2024 ........................................... A3/A- 5,161
1,500,000 New York City, NY GOs, 6-1/4% due 4/15/2027 ........................................... A3/A- 1,537,275
2,345,000 New York City, NY Industrial Development Agency Civic Facility Rev.
(The Nightingale-Bamford School Project), 5.85% due 1/15/2020 ....................... A3/A 2,328,468
3,500,000 New York City, NY Transitional Finance Authority (Future Tax Secured Bonds),
5% due 5/1/2026 ..................................................................... Aa3/AA 3,074,645
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 3,901,600
4,000,000 New York State Dormitory Authority Rev. (Fordham University),
5-3/4% due 7/1/2015 ................................................................. Aaa/AAA 4,045,600
4,000,000 New York State Dormitory Authority Rev. (Rochester Institute of Technology),
5-1/2% due 7/1/2018 ................................................................. Aaa/AAA 3,945,280
3,500,000 New York State Dormitory Authority Rev. (Mental Health Services Facilities
Improvement), 5-3/4% due 8/15/2022 .................................................. A3/A 3,380,230
3,000,000 New York State Dormitory Authority Rev. (Skidmore College), 53U8% due 7/1/2023 ........ Aaa/AAA 2,830,770
1,500,000 New York State Dormitory Authority Rev. (Vassar Brothers Hospital),
5-3/8% due 7/1/2025 ................................................................. Aaa/AAA 1,398,990
2,000,000 New YorkState Dormitory Authority Rev. (Hospital for Special Surgery),
5% due 2/1/2028 ..................................................................... Aaa/AAA 1,732,980
2,000,000 New YorkState Dormitory Authority Rev. (Rockefeller University),
5% due 7/1/2028 ..................................................................... Aaa/AAA 1,790,260
4,000,000 New York State Energy Research &Development Authority Gas Facilities Rev.
(Brooklyn Union Gas), 5-1/2% due 1/1/2021 ........................................... Aaa/AAA 3,865,240
3,000,000 New York State Environmental Facilities Corporation Pollution Control Rev.
(State Water--Revolving Fund), 6.90% due 11/15/2015 ................................. Aaa/AAA 3,245,220
3,000,000 New York State Housing Finance Agency Rev. (Phillips Village Project),
7-3/4% due 8/15/2017* ............................................................... A2/NR 3,199,350
3,000,000 New York State Local Government Assistance Corp., 6% due 4/1/2024 ..................... A3/AA- 3,030,690
2,000,000 New York State Mortgage Agency Rev. (Homeowner Mortgage),
7-1/2% due 4/1/2016 ................................................................. Aa1/NR 2,038,560
995,000 New York State Mortgage Agency Rev. (Homeowner Mortgage),
5-1/2% due 10/1/2028* ............................................................... Aa1/NR 918,564
</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.
23
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
NEW YORK SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------ ------------
<S> <C> <C> <C>
$ 1,000,000 New York State Mortgage Agency Rev. (Homeowner Mortgage),
5.65% due 4/1/2030* ................................................................. Aa2/NR $ 946,130
2,000,000 New York State Thruway Authority (Highway and Bridge Trust Fund),
5% due 4/1/2018 ..................................................................... A3/A 1,795,900
2,000,000 New York State Thruway Authority Service Contract Rev., 6-1/4% due 4/1/2014o .......... Baa1/NR 2,146,160
4,000,000 Onondaga County, NY Industrial Development Agency Sewer Facilities Rev.
(Bristol-Myers Squibb Co. Project), 5-3/4% due 3/1/2024* ............................ Aaa/AAA 4,004,960
2,250,000 Port Authority of New York and New Jersey Consolidated Rev., 6-1/8% due 6/1/2094 ...... A1/AA- 2,362,253
2,250,000 St. Lawrence County, NY Industrial Development Agency Civic Facility Rev.
(Clarkson University Project), 5-1/2% due 7/1/2029 .................................. Baa1/NR 2,043,922
1,800,000 Triborough Bridge & Tunnel Authority General Purpose Rev., 5-1/2% due 1/1/2030 Aa3/A+ 1,709,082
-----------
TOTAL MUNICIPAL BONDS (Cost $73,513,617)--98.1% ................................................................... 72,454,065
VARIABLE RATE DEMAND NOTES (Cost $100,000)--0.1% .................................................................. 100,000
OTHER ASSETS LESS LIABILITIES--1.8% ............................................................................... 1,317,044
-----------
NET ASSETS--100.0% ................................................................................................ $73,871,109
===========
OHIO SERIES
<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 $ 2,258,100
3,450,000 Big Walnut Local School District, OH School Building Construction &
Improvement GOs, 7.20% due 6/1/2007o ................................................ Aaa/AAA 3,625,708
4,000,000 Butler County, OHTransportation Improvement District Highway
Improvement Rev., 5-1/8% due 4/1/2017 ............................................... Aaa/AAA 3,785,840
3,600,000 Cincinnati, OHGOs, 6% due 12/1/2035 ................................................... Aa1/AA+ 3,656,628
4,000,000 Cleveland, OHAirport System Rev., 5-1/8% due 1/1/2027* ................................ Aaa/AAA 3,521,800
2,395,000 Cleveland,OHAirport System Rev., 5-1/8% due 1/1/2027 .................................. Aaa/AAA 2,159,045
5,000,000 Cleveland, OH Public Power System Rev., 5% due 11/15/2024 ............................. Aaa/AAA 4,448,800
3,915,000 Cleveland, OH Waterworks Improvement First Mortgage Rev., 5-3/4% due 1/1/2021o ........ Aaa/AAA 4,132,870
85,000 Cleveland, OH Waterworks Improvement First Mortgage Rev., 5-3/4% due 1/1/2021 ......... Aaa/AAA 85,255
4,500,000 Columbus, OH Municipal Airport Authority Rev. (Port Columbus International
Airport Project), 6% due 1/1/2020* .................................................. Aaa/AAA 4,521,195
1,000,000 Columbus, OH Municipal Airport Authority Rev. (Port Columbus International
Airport Project), 5% due 1/1/2028 ................................................... Aaa/AAA 878,370
7,000,000 Franklin County, OH GOs, 5-3/8% due 12/1/2020 ......................................... Aaa/AAA 6,791,330
1,250,000 Franklin County, OH Hospital Improvement Rev. (The Children's
Hospital Project), 5.20% due 5/1/2029 ............................................... Aa3/NR 1,078,575
5,200,000 Franklin County, OH Hospital Rev. (Riverside United Methodist Hospital),
5-3/4% due 5/15/2020 ................................................................ Aa3/NR 4,842,292
</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.
24
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
OHIO SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------ ------------
<S> <C> <C> <C>
$ 2,500,000 Hamilton County, OH Sewer System Rev., 5-1/2% due 12/1/2017 ........................... Aaa/AAA $ 2,488,625
5,000,000 Hamilton, OH Electric System Mortgage Rev., 6% due 10/15/2023 ......................... Aaa/AAA 5,047,200
4,000,000 Hudson Local School District, OH GOs, 7.10% due 12/15/2013o ........................... A1/NR 4,158,000
6,425,000 Mahoning County, OHHospital Rev. (Forum Health Obligated Group),
5% due 11/15/2025 ................................................................... Aaa/AAA 5,650,017
2,000,000 Ohio Air Quality Development Authority Rev. (Cincinnati Gas & Electric
Company Project), 5.45% due 1/1/2024 ................................................ Aaa/AAA 1,892,920
6,500,000 Ohio Air Quality Development Authority Rev. (JMG Project), 6-3/8% due 1/1/2029* ....... Aaa/AAA 6,657,690
4,415,000 Ohio Housing Finance Agency Residential Mortgage Rev. (Mortgage-Backed
Securities Program), 6.10% due 9/1/2028* ............................................ Aaa/NR 4,292,925
2,500,000 Ohio Housing Finance Agency Residential Mortgage Rev.,
5.40% due 9/1/2029* ................................................................. Aaa/NR 2,286,725
4,000,000 Ohio State Higher Educational Facilities Commission Rev. (University of
Dayton Project), 5.40% due 12/1/2022 ................................................ Aaa/AAA 3,848,040
4,000,000 Ohio State Public Facilities Commission Rev. (Higher Education Capital Facilities),
6.30% due 5/1/2006o ................................................................. Aaa/AAA 4,161,080
3,000,000 Ohio State University (A State University of Ohio), 5.80% due 12/1/2029 ............... Aa2/AA 3,004,770
2,035,000 Ohio State Water Development Authority Rev. (Safe Water), 9-3/8% due 12/1/2010 ........ Aaa/AAA 2,428,711
7,500,000 Ohio State Water Development Authority Rev. (Fresh Water), 5-1/8% due 12/1/2023 ....... Aaa/AAA 6,844,950
5,000,000 Ohio State Water Development Authority Rev. (Community Assistance),
5-3/8% due 12/1/2024 ................................................................ Aaa/AAA 4,766,700
5,000,000 Ohio State Water Development Authority Rev. (Dayton Power & Light Co.
Project), 6.40% due 8/15/2027 ....................................................... A2/BBB+ 5,053,900
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+ 2,536,900
3,000,000 Ohio Turnpike Commission, OH Turnpike Rev., 5-1/2% due 2/15/2026 ...................... Aaa/AAA 2,927,040
2,955,000 Pickerington Local School District, OH School Building Construction GOs,
8% due 12/1/2005 .................................................................... Aaa/AAA 3,257,947
4,000,000 Puerto Rico Highway &Transportation Authority Rev., 5-1/2% due 7/1/2036 Baa1/A 3,791,600
1,000,000 Puerto Rico Telephone Authority Rev., 5-1/2% due 1/1/2022o ............................ A/AAA 1,038,530
2,500,000 Twinsburg City School District, OH School Improvement GOs,
5.90% due 12/1/2021 ................................................................. Aaa/AAA 2,538,375
2,000,000 Worthington City School District, OH School Building Construction &
Improvement GOs, 8-3/4% due 12/1/2002 ............................................... Aaa/AAA 2,054,320
------------
TOTAL MUNICIPAL BONDS (Cost $127,616,687)--98.0% .................................................................. 126,512,773
OTHER ASSETS LESS LIABILITIES--2.0% ............................................................................... 2,582,456
------------
NET ASSETS--100.0% ................................................................................................ $129,095,229
============
</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.
25
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
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), 5-1/8% due 10/1/2028 ............................................. NR/A $ 1,621,300
2,000,000 Chemeketa, OR Community College District GOs, 5.95% due 6/1/2016o ..................... Aaa/AAA 2,109,360
1,500,000 Clackamas County, OR Hospital Facility Authority Rev. (Legacy Health System),
5-1/4% due 2/15/2018 ................................................................ NR/AA 1,400,940
1,000,000 Clackamas &Washington Counties, OR GOs (West Linn--Wilsonville
School District), 5% due 6/1/2017 ................................................... Aaa/AAA 938,490
1,395,000 Eugene, OR Trojan Nuclear Project Rev., 5.90% due 9/1/2009 ............................ Aa1/AA- 1,405,463
1,250,000 Multnomah County, OREducation Facility Rev. (University of Portland),
5% due 4/1/2018 ..................................................................... Aaa/AAA 1,157,613
1,750,000 Multnomah County School District, OR GOs, 5-1/2% due 6/1/2015 ......................... A1/A+ 1,758,015
2,000,000 North Clackamas Parks & Recreation District--Clackamas County, OR Rev.
(Recreational Facilities), 5.70% due 4/1/2013 ....................................... NR/A- 2,023,020
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- 1,848,600
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 ............................................... Aa3/AA 760,770
2,250,000 Oregon Department of Administrative Services Certificates of Participation,
5% due 5/1/2024 ..................................................................... Aaa/AAA 2,012,490
2,500,000 Oregon Department of Administrative Services Certificates of Participation,
6% due 5/1/2026 ..................................................................... Aaa/AAA 2,552,625
1,000,000 Oregon Department of Transportation Regional Light Rail Extension Rev.,
6.20% due 6/1/2008 .................................................................. Aaa/AAA 1,059,670
2,000,000 Oregon Health, Housing, Educational &Cultural Facilities Authority Rev.
(Linfield College Project), 5-1/4% due 10/1/2023 .................................... Baa1/NR 1,703,060
2,500,000 Oregon Health, Housing, Educational &Cultural Facilities Authority Rev.
(Reed College Project), 5-3/8% due 7/1/2025 ......................................... NR/AA- 2,319,275
1,250,000 Oregon Health Sciences University Rev., 5-1/4% due 7/1/2028 ........................... Aaa/AAA 1,126,637
2,000,000 Oregon Housing & Community Services Department Housing & Finance Rev.
(Assisted or Insured Multi-Unit Program), 5-3/4% due 7/1/2012 ....................... Aa2/A+ 2,001,580
2,500,000 Oregon Housing & Community Services Department Mortgage Rev.
(Single Family Mortgage Program), 6-1/4% due 7/1/2029* .............................. Aa2/NR 2,534,300
500,000 Oregon State GOs (Veterans' Welfare), 9% due 10/1/2006 ................................ Aa2/AA 611,075
1,260,000 Oregon State GOs (Veterans' Welfare), 5-7/8% due 10/1/2018 ............................ Aa2/AA 1,239,777
250,000 Oregon State GOs (Elderly & Disabled Housing), 7.20% due 8/1/2021 ..................... Aa2/AA 256,910
1,000,000 Oregon State GOs (Elderly & Disabled Housing), 6.60% due 8/1/2022* .................... Aa2/AA 1,031,980
950,000 Port of Portland, OR International Airport Rev., 7.10% due 7/1/2021*o ................. Aaa/AAA 1,094,429
50,000 Port of Portland, OR International Airport Rev., 7.10% due 7/1/2021*o ................. Aaa/AAA 52,007
500,000 Port of Portland, OR International Airport Rev., 5-3/4% due 7/1/2025* ................. Aaa/AAA 488,880
</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
MARCH 31, 2000
OREGON SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------ ------------
<S> <C> <C> <C>
$ 1,500,000 Port of Portland, OR International Airport Rev., 5-5/8% due 7/1/2026* ................. Aaa/AAA $ 1,439,340
2,000,000 Portland, OR GOs, 5.60% due 6/1/2014 .................................................. Aa2/NR 2,028,960
1,250,000 Portland, OR Hospital Facilities Authority Rev. (Legacy Health System),
6-5/8% due 5/1/2011 ................................................................. Aaa/AAA 1,299,737
2,500,000 Portland, OR Sewer System Rev., 5% due 6/1/2015 ....................................... Aaa/AAA 2,374,825
1,000,000 Puerto Rico Highway & Transportation Authority Rev., 5-1/2% due 7/1/2026 .............. Baa1/A 957,110
630,000 Puerto Rico Housing Finance Corp. (Single Family Mortgage Rev.),
6.85% due 10/15/2023 ................................................................ Aaa/AAA 654,992
1,000,000 Puerto Rico Ports Authority Rev., 7% due 7/1/2014* .................................... Aaa/AAA 1,043,450
2,000,000 Salem, OR Hospital Facility Authority Rev. (Salem Hospital), 5% due 8/15/2018 ......... NR/AA- 1,793,400
1,000,000 Salem, OR Pedestrian Safety Improvements GOs, 5-3/4% due 5/1/2011o .................... Aaa/AAA 1,043,670
1,110,000 Tualatin Development Commission, OR (Urban Renewal & Redevelopment),
7-3/8% due 1/1/2007 ................................................................. Baa1/NR 1,117,159
500,000 Virgin Islands Public Finance Authority Rev., 5-1/2% due 10/1/2022 .................... NR/BBB- 448,920
2,500,000 Washington and Multnomah Counties, OR (Beaverton School District),
5% due 8/1/2017 ..................................................................... Aa2/AA- 2,332,150
1,500,000 Washington County, OR Unified Sewerage Agency Rev., 5-3/4% due 10/1/2011 .............. Aaa/AAA 1,578,705
------------
TOTAL MUNICIPAL BONDS (Cost $53,721,624)--97.9% ................................................................... 53,220,684
VARIABLE RATE DEMAND NOTES (Cost $300,000)--0.6% .................................................................. 300,000
OTHER ASSETS LESS LIABILITIES--1.5% ............................................................................... 829,177
-----------
NET ASSETS--100.0% ................................................................................................ $54,349,861
===========
SOUTH CAROLINA SERIES
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------ ------------
<S> <C> <C> <C>
$ 745,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 2/1/2004 .................................................................. A1/A $ 761,465
770,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 8/1/2004 .................................................................. A1/A 787,017
800,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.20% due 2/1/2005 .................................................................. A1/A 817,680
2,500,000 Charleston, SC Waterworks & Sewer System Rev., 6% due 1/1/2012 ........................ A1/AA- 2,561,125
5,000,000 Coastal Carolina University, SC Improvement Rev.,
5.30% due 6/1/2026 .................................................................. Aaa/NR 4,644,800
6,000,000 Darlington County, SC Industrial Development Rev. (Nucor Corporation Project),
5-3/4% due 8/1/2023* ................................................................ A1/AA- 5,768,700
3,500,000 Darlington County, SC Industrial Development Rev. (Sonoco Products
Company Project), 6% due 4/1/2026* .................................................. A2/A 3,459,155
4,500,000 Fairfield County, SC Pollution Control Rev. (South Carolina Electric & Gas
Company), 6-1/2% due 9/1/2014 ....................................................... A1/A 4,755,555
</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.
27
<PAGE>
PORTFOLIOS OF INVESTMENTS
MARCH 31, 2000
SOUTH CAROLINA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------ ------------
<S> <C> <C> <C>
$1,000,000 Georgetown County, SC Environmental Improvement Rev.,
(International Paper Company), 5.95% due 3/15/2014 .................................. A3/BBB+ $ 1,008,460
1,000,000 Georgetown County, SC Pollution Control Facilities Rev. (International Paper
Company), 7-3/8% due 6/15/2005o ..................................................... A3/BBB+ 1,006,150
3,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5-1/2% due 5/1/2016 .......... NR/AA 2,894,370
2,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5-1/4% due 5/1/2023 .......... Aa3/AA 1,786,280
3,000,000 Greenwood County, SC Hospital Facilities Rev. (Self Memorial Hospital),
5-7/8% due 10/1/2017 ................................................................ Aaa/AAA 3,024,480
5,000,000 Lexington County,SCHospital Rev. (Health Services District, Inc.),
5-1/8% due 11/1/2026 ................................................................ Aaa/AAA 4,404,000
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 1,054,210
1,000,000 Medical University South Carolina Hospital Facilities Rev., 5.60% due 7/1/2011 ........ Aaa/AAA 1,026,280
3,000,000 Mount Pleasant, SC Water & Sewer Rev., 6% due 12/1/2020 ............................... Aaa/AAA 3,032,490
1,500,000 North Charleston Sewer District, SC Rev., 6-3/8% due 7/1/2012 ......................... Aaa/AAA 1,663,095
1,250,000 Piedmont Municipal Power Agency, SC Electric Rev., 6-1/4% due 1/1/2021 ................ Aaa/AAA 1,331,325
1,000,000 Puerto Rico Highway &Transportation Authority Rev., 5-1/2% due 7/1/2036 ............... Baa1/A 947,900
2,000,000 Puerto Rico Highway &Transportation Authority Rev., 5% due 7/1/2038 ................... Baa1/A 1,719,700
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 2,279,675
2,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp
Corp. Project), 7.45% due 4/1/2021* ................................................. A3/BBB+ 2,065,440
1,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp
Corp. Project), 7-1/8% due 9/1/2021* ................................................ A3/BBB+ 1,029,560
5,000,000 Rock Hill, SC Combined Utilities System Rev., 5% due 1/1/2020 ......................... Aaa/AAA 4,505,700
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- 2,802,090
2,000,000 South Carolina Jobs--Economic Development Authority Hospital Rev.
(Georgetown Memorial Hospital), 5% due 11/1/2029 .................................... Aaa/NR 1,709,880
5,000,000 SouthCarolina Public Service Authority Rev., 5-7/8% due 1/1/2023 ...................... Aaa/AAA 5,010,250
2,010,000 South Carolina State Housing Finance & Development Authority Rental
Housing Rev. (North Bluff Project), 5.60% due 7/1/2016 .............................. NR/AA 1,913,057
1,000,000 South Carolina State Housing Finance & Development Authority Rev.
(Multi-Family Development), 6-7/8% due 11/15/2023 ................................... Aaa/NR 1,035,130
4,640,000 South Carolina State Housing Finance & Development Authority Mortgage
Rev., 5.40% due 7/1/2029* ........................................................... Aaa/NR 4,244,765
5,000,000 South Carolina State Ports Authority Rev., 5.30% due 7/1/2026* ........................ Aaa/AAA 4,516,600
5,000,000 South Carolina Transportation Infrastructure Bank Rev.,
5-3/8% due 10/1/2024 ................................................................ Aaa/NR 4,717,650
</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
MARCH 31, 2000
SOUTH CAROLINA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
-------- --------------- ------------ ------------
<S> <C> <C> <C>
$ 2,500,000 Spartanburg, SC Water System Rev., 5% due 6/1/2027 .................................... Aaa/AAA $ 2,193,350
3,000,000 University of South Carolina Rev., 5-3/4% due 6/1/2026 ................................ Aaa/AAA 2,963,730
------------
TOTAL MUNICIPAL BONDS (Cost $91,141,915)--98.2% ................................................................... 89,441,114
VARIABLE RATE DEMAND NOTES (Cost $200,000)--0.2% .................................................................. 200,000
OTHER ASSETS LESS LIABILITIES--1.6% ............................................................................... 1,478,152
-----------
NET ASSETS--100.0% ................................................................................................ $91,119,266
===========
</TABLE>
----------
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
29
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2000
<TABLE>
<CAPTION>
NATIONAL COLORADO GEORGIA LOUISIANA MARYLAND
SERIES SERIES SERIES SERIES SERIES
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (See portfolios
of investments):
Long-term holdings ................................ $92,093,737 $39,722,318 $41,774,677 $48,243,257 $48,048,412
Short-term holdings ............................... 1,900,000 200,000 600,000 200,000 --
----------- ----------- ----------- ----------- -----------
93,993,737 39,922,318 42,374,677 48,443,257 48,048,412
Cash ................................................ 672,517 79,113 94,627 144,268 135,961
Interest receivable ................................. 1,544,944 802,206 749,023 871,371 904,659
Receivable for Capital Stock sold ................... 184,471 5,776 31,042 17,356 14,098
Receivable for securities sold ...................... 60,000 -- -- 105,000 --
Expenses prepaid to shareholder
service agent ..................................... 10,299 4,651 4,651 4,651 5,315
Other ............................................... 17,377 2,918 4,063 6,027 1,406
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS ........................................ 96,483,345 40,816,982 43,258,083 49,591,930 49,109,851
----------- ----------- ----------- ----------- -----------
LIABILITIES:
Dividends payable ................................... 184,986 76,547 78,728 95,693 95,372
Payable for Capital Stock repurchased ............... 89,762 10,235 193,419 6,883 33,935
Payable for securities purchased .................... -- -- 1,907,638 -- --
Bank overdraft ...................................... -- -- -- -- --
Accrued expenses and other .......................... 123,663 59,798 64,505 72,585 74,301
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES ................................... 398,411 146,580 2,244,290 175,161 203,608
----------- ----------- ----------- ----------- -----------
NET ASSETS .......................................... $96,084,934 $40,670,402 $41,013,793 $49,416,769 $48,906,243
=========== =========== =========== =========== ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ........................................... $ 12,083 $ 5,717 $ 5,129 $ 6,225 $ 6,024
Class C ........................................... 61 9 25 78 13
Class D ........................................... 507 116 291 102 299
Additional paid-in capital .......................... 99,295,947 41,902,077 41,310,679 49,764,675 48,435,278
Undistributed/(dividends in excess of) net
investment income ................................ 1,218 (2,658) (8,542) 2,131 4,917
Undistributed/accumulated net realized
gain (loss) ....................................... (1,101,579) (111,361) 169,173 76,134 (12,155)
Net unrealized appreciation (depreciation)
of investments .................................... (2,123,303) (1,123,498) (462,962) (432,576) 471,867
----------- ----------- ----------- ----------- -----------
NET ASSETS .......................................... $96,084,934 $40,670,402 $41,013,793 $49,416,769 $48,906,243
=========== =========== =========== =========== ===========
NET ASSETS:
Class A ........................................... $91,771,113 $39,799,427 $38,628,476 $48,024,824 $46,496,502
Class C ........................................... $ 467,079 $ 63,310 $ 189,131 $ 603,764 $ 100,068
Class D ........................................... $ 3,846,742 $ 807,665 $ 2,196,186 $ 788,181 $ 2,309,673
SHARES OF CAPITAL STOCK
OUTSTANDING ($.001 par value):
Class A ........................................... 12,082,741 5,716,946 5,128,774 6,225,332 6,024,297
Class C ........................................... 61,488 9,102 25,058 78,286 12,956
Class D ........................................... 506,417 116,109 290,973 102,197 299,027
NET ASSET VALUE PER SHARE:
CLASS A ........................................... $7.60 $6.96 $7.53 $7.71 $7.72
CLASS C ........................................... $7.60 $6.96 $7.55 $7.71 $7.72
CLASS D ........................................... $7.60 $6.96 $7.55 $7.71 $7.72
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
MASSACHUSETTS MICHIGAN MINNESOTA MISSOURI NEW YORK OHIO OREGON SOUTH CAROLINA
SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES
----------- ------------ ------------ ----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
$86,655,626 $117,705,412 $ 99,979,056 $39,541,226 $72,454,065 $126,512,773 $53,220,684 $89,441,114
2,200,000 1,200,000 1,800,000 -- 100,000 -- 300,000 200,000
----------- ------------ ------------ ----------- ----------- ------------ ----------- -----------
88,855,626 118,905,412 101,779,056 39,541,226 72,554,065 126,512,773 53,520,684 89,641,114
146,481 176,690 88,461 65,223 149,108 -- 102,568 105,006
1,320,146 2,272,023 1,733,265 796,900 1,382,293 2,269,091 976,909 1,627,457
108,750 2,400 12,466 39,684 45,303 16,737 1,668 39,659
-- -- -- -- 5,000 1,048,406 -- --
9,967 12,957 12,292 4,651 7,641 13,621 5,980 9,967
5,384 17,326 2,687 1,103 10,288 18,549 6,937 4,565
----------- ------------ ------------ ----------- ----------- ------------ ----------- -----------
90,446,354 121,386,808 103,628,227 40,448,787 74,153,698 129,879,177 54,614,746 91,427,768
----------- ------------ ------------ ----------- ----------- ------------ ----------- -----------
175,476 240,480 195,546 75,370 144,865 255,336 100,788 172,354
92,125 92,212 108,395 10,209 42,045 74,933 91,091 26,232
-- -- -- -- -- -- -- --
-- -- -- -- -- 306,522 -- --
116,992 150,325 125,644 61,899 95,679 147,157 73,006 109,916
----------- ------------ ------------ ----------- ----------- ------------ ----------- -----------
384,593 483,017 429,585 147,478 282,589 783,948 264,885 308,502
----------- ------------ ------------ ----------- ----------- ------------ ----------- -----------
$90,061,761 $120,903,791 $103,198,642 $40,301,309 $73,871,109 $129,095,229 $54,349,861 $91,119,266
=========== ============ ============ =========== =========== ============ =========== ===========
$ 11,926 $ 14,788 $ 13,976 $ 5,481 $ 9,287 $ 16,913 $ 7,087 $ 11,254
40 35 5 3 34 13 -- 75
210 203 226 60 329 141 276 713
91,853,301 120,440,239 104,915,850 40,882,202 74,626,976 130,217,395 54,692,343 92,877,937
(36,180) 24,312 (21,214) (529) 6,665 17,163 2,140 (11,036)
(114,321) 156,531 93,985 46,421 287,370 (52,482) 148,955 (58,876)
(1,653,215) 267,683 (1,804,186) (632,329) (1,059,552) (1,103,914) (500,940) (1,700,801)
----------- ------------ ------------ ----------- ----------- ------------ ----------- -----------
$90,061,761 $120,903,791 $103,198,642 $40,301,309 $73,871,109 $129,095,229 $54,349,861 $91,119,266
=========== ============ ============ =========== =========== ============ =========== ===========
$88,214,882 $118,994,274 $101,515,208 $39,841,035 $71,089,979 $127,926,210 $52,316,153 $85,161,295
$ 295,463 $ 279,699 $ 39,379 $ 21,479 $ 258,180 $ 101,064 $ 7 $ 565,337
$ 1,551,416 $ 1,629,818 $ 1,644,055 $ 438,795 $ 2,522,950 $ 1,067,955 $ 2,033,701 $ 5,392,634
11,925,722 14,787,685 13,975,474 5,481,095 9,287,085 16,913,056 7,087,453 11,254,364
39,959 34,802 5,421 2,954 33,701 13,289 1 74,787
209,867 202,760 226,319 60,371 329,328 140,428 275,736 713,334
$7.40 $8.05 $7.26 $7.27 $7.65 $7.56 $7.38 $7.57
$7.39 $8.04 $7.26 $7.27 $7.66 $7.61 $7.38 $7.56
$7.39 $8.04 $7.26 $7.27 $7.66 $7.61 $7.38 $7.56
</TABLE>
31
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
NATIONAL COLORADO GEORGIA LOUISIANA MARYLAND
SERIES SERIES SERIES SERIES SERIES
----------- ---------- ---------- ---------- ----------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Interest ................................................ $ 2,946,721 $1,259,825 $1,271,836 $1,526,440 $1,518,625
----------- ---------- ---------- ---------- ----------
EXPENSES:
Management fees ......................................... 241,303 106,029 107,348 126,606 125,532
Distribution and service fees ........................... 78,357 25,030 32,381 31,805 36,771
Shareholder account services ............................ 69,372 33,531 34,717 35,765 38,380
Registration ............................................ 18,657 4,983 2,880 5,203 8,029
Auditing and legal fees ................................. 16,567 12,395 11,699 13,302 12,502
Custody and related services ............................ 10,586 5,246 6,651 5,335 6,928
Shareholder reports and communications .................. 6,660 3,032 3,763 4,469 4,845
Directors' fees and expenses ............................ 5,178 3,990 3,921 4,155 4,163
Miscellaneous ........................................... 1,780 1,042 1,028 1,072 1,163
----------- ---------- ---------- ---------- ----------
TOTAL EXPENSES BEFORE REIMBURSEMENT ..................... 448,460 195,278 204,388 227,712 238,313
Reimbursement of Expenses ............................... -- -- -- -- --
----------- ---------- ---------- ---------- ----------
TOTAL EXPENSES AFTER REIMBURSEMENT ...................... 448,460 195,278 204,388 227,712 238,313
----------- ---------- ---------- ---------- ----------
NET INVESTMENT INCOME ................................... 2,498,261 1,064,547 1,067,448 1,298,728 1,280,312
----------- ---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments ................. 245,713 (104,029) 293,906 85,940 (5,920)
Net change in unrealized appreciation/
depreciation of investments ........................... (1,344,311) (464,011) (621,136) (447,045) (511,409)
----------- ---------- ---------- ---------- ----------
NET GAIN (LOSS) ON INVESTMENTS .......................... (1,098,598) (568,040) (327,230) (361,105) (517,329)
----------- ---------- ---------- ---------- ----------
INCREASE IN NET ASSETS FROM OPERATIONS .................. $ 1,399,663 $ 496,507 $ 740,218 $ 937,623 $ 762,983
=========== ========== ========== ========== ==========
</TABLE>
----------
See Notes to Financial Statements.
32
<PAGE>
<TABLE>
<CAPTION>
MASSACHUSETTS MICHIGAN MINNESOTA MISSOURI NEW YORK OHIO OREGON SOUTH CAROLINA
SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES
----------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,707,631 $3,680,043 $ 3,132,224 $1,226,156 $2,249,229 $ 3,948,688 $1,585,482 $2,808,070
----------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
228,963 309,450 265,690 105,372 189,277 329,498 137,130 234,756
57,197 70,706 60,080 22,913 49,495 69,797 36,938 73,632
67,230 91,270 86,107 34,358 51,411 94,879 41,548 71,340
5,524 6,246 5,649 5,761 7,833 8,407 2,767 4,757
16,595 21,330 17,460 9,731 14,866 21,323 14,286 16,749
13,794 11,093 13,720 6,427 3,690 13,215 9,613 16,211
5,561 11,166 9,334 4,536 5,120 9,774 4,779 4,227
4,851 5,055 4,972 3,988 4,719 5,178 4,056 4,344
1,870 2,265 2,058 1,054 1,516 2,409 1,191 1,782
----------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
401,585 528,581 465,070 194,140 327,927 554,480 252,308 427,798
-- (78,530) -- -- (47,442) (82,641) -- --
----------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
401,585 450,051 465,070 194,140 280,485 471,839 252,308 427,798
----------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
2,306,046 3,229,992 2,667,154 1,032,016 1,968,744 3,476,849 1,333,174 2,380,272
----------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
61,620 174,966 112,276 52,284 377,357 10,288 159,615 90,286
(214,556) 231,974 (1,074,317) (215,791) (829,549) (1,110,780) (551,487) (554,731)
----------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
(152,936) 406,940 (962,041) (163,507) (452,192) (1,100,492) (391,872) (464,445)
----------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
$ 2,153,110 $3,636,932 $ 1,705,113 $ 868,509 $1,516,552 $ 2,376,357 $ 941,302 $1,915,827
=========== ========== =========== ========== ========== =========== ========== ==========
</TABLE>
----------
See Notes to Financial Statements.
33
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
NATIONAL SERIES COLORADO SERIES GEORGIA SERIES
-------------------------- ------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income ..................... $ 2,498,261 $ 5,024,887 $ 1,064,547 $ 2,172,275 $ 1,067,448 $ 2,246,763
Net realized gain (loss) on investments ... 245,713 211,923 (104,029) 430,454 293,906 884,473
Net change in unrealized appreciation/
depreciation of investments ............ (1,344,311) (8,530,095) (464,011) (3,920,316) (621,136) (4,441,923)
----------- ----------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ........................ 1,399,663 (3,293,285) 496,507 (1,317,587) 740,218 (1,310,687)
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ................................. (2,346,353) (4,766,686) (1,049,152) (2,141,971) (1,025,472) (2,145,554)
Class C ................................. (7,561) (996) (931) (638) (3,734) (1,879)
Class D ................................. (143,129) (257,205) (17,122) (29,666) (46,784) (99,330)
Net realized gain on investments:
Class A ................................. -- -- (315,697) -- (950,161) (256,931)
Class C ................................. -- -- (418) -- (3,925) --
Class D ................................. -- -- (5,828) -- (50,033) (15,052)
----------- ----------- ----------- ----------- ----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS .......................... (2,497,043) (5,024,887) (1,389,148) (2,172,275) (2,080,109) (2,518,746)
----------- ----------- ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ......... 3,183,593 5,374,193 628,161 3,938,964 2,096,901 3,266,648
Investment of dividends ................... 1,311,773 2,813,446 542,638 1,250,466 557,831 1,454,489
Exchanged from associated Funds ........... 12,637,505 22,062,389 2,650,418 7,143,293 47,465 945,166
Value of shares issued in payment of
gain distributions ..................... -- -- 220,500 -- 771,491 213,097
----------- ----------- ----------- ----------- ----------- -----------
Total ..................................... 17,132,871 30,250,028 4,041,717 12,332,723 3,473,688 5,879,400
----------- ----------- ----------- ----------- ----------- -----------
Cost of shares repurchased ................ (7,417,010) (11,785,860) (6,392,366) (4,176,969) (5,454,667) (7,410,411)
Exchanged into associated Funds ........... (11,023,983) (20,956,923) (1,712,746) (4,966,613) (851,242) (686,937)
----------- ----------- ----------- ----------- ----------- -----------
Total ..................................... (18,440,993) (32,742,783) (8,105,112) (9,143,582) (6,305,909) (8,097,348)
----------- ----------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS ........ (1,308,122) (2,492,755) (4,063,395) 3,189,141 (2,832,221) (2,217,948)
----------- ----------- ----------- ----------- ----------- -----------
DECREASE IN NET ASSETS .................... (2,405,502) (10,810,927) (4,956,036) (300,721) (4,172,112) (6,047,381)
NET ASSETS:
Beginning of period ....................... 98,490,436 109,301,363 45,626,438 45,927,159 45,185,905 51,233,286
----------- ----------- ----------- ----------- ----------- -----------
END OF PERIOD ............................. $96,084,934 $98,490,436 $40,670,402 $45,626,438 $41,013,793 $45,185,905
=========== =========== =========== =========== =========== ===========
</TABLE>
----------
See Notes to Financial Statements.
34
<PAGE>
<TABLE>
<CAPTION>
LOUISIANA SERIES MARYLAND SERIES MASSACHUSETTS SERIES MICHIGAN SERIES
--------------------------- --------------------------- ---------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
----------- ----------- ----------- ----------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,298,728 $ 2,624,908 $ 1,280,312 $ 2,648,828 $ 2,306,046 $ 4,783,992 $ 3,229,992 $ 6,558,436
85,940 303,123 (5,920) 30,812 61,620 836,791 174,966 616,641
(447,045) (4,254,499) (511,409) (3,439,773) (214,556) (10,688,280) 231,974 (10,841,083)
----------- ----------- ----------- ----------- ----------- ------------ ------------ ------------
937,623 (1,326,468) 762,983 (760,133) 2,153,110 (5,067,497) 3,636,932 (3,666,006)
----------- ----------- ----------- ----------- ----------- ------------ ------------ ------------
(1,270,006) (2,592,830) (1,220,169) (2,529,563) (2,282,715) (4,692,195) (3,158,421) (6,466,582)
(8,723) -- (1,946) (491) (5,151) (1,124) (4,929) (678)
(17,868) (32,078) (53,280) (118,774) (54,360) (90,673) (42,330) (91,176)
(300,679) (742,225) (25,050) (184,646) (694,419) (643,189) (491,905) (2,565,404)
(1,820) -- (38) -- (1,378) -- (510) --
(5,363) (11,055) (1,412) (10,939) (21,232) (9,341) (7,679) (38,013)
----------- ----------- ----------- ----------- ----------- ------------ ------------ ------------
(1,604,459) (3,378,188) (1,301,895) (2,844,413) (3,059,255) (5,436,522) (3,705,774) (9,161,853)
----------- ----------- ----------- ----------- ----------- ------------ ------------ ------------
1,366,525 2,639,130 416,350 2,360,545 831,048 4,563,932 3,248,278 5,706,815
536,966 1,282,591 707,055 1,604,067 1,366,145 2,809,223 1,786,194 3,963,684
41,790 79,357 258,944 302,980 9,510,234 22,685,568 425,804 835,726
206,340 498,800 19,784 148,824 539,579 465,453 373,853 1,930,148
----------- ----------- ----------- ----------- ----------- ------------ ------------ ------------
2,151,621 4,499,878 1,402,133 4,416,416 12,247,006 30,524,176 5,834,129 12,436,373
----------- ----------- ----------- ----------- ----------- ------------ ------------ ------------
(4,214,997) (4,264,493) (4,049,689) (6,166,502) (10,387,452) (10,234,861) (10,077,270) (16,216,494)
(303,833) (224,567) (279,835) (291,435) (6,982,212) (24,490,848) (2,532,556) (1,646,007)
----------- ----------- ----------- ----------- ----------- ------------ ------------ ------------
(4,518,830) (4,489,060) (4,329,524) (6,457,937) (17,369,664) (34,725,709) (12,609,826) (17,862,501)
----------- ----------- ----------- ----------- ----------- ------------ ------------ ------------
(2,367,209) 10,818 (2,927,391) (2,041,521) (5,122,658) (4,201,533) (6,775,697) (5,426,128)
----------- ----------- ----------- ----------- ----------- ------------ ------------ ------------
(3,034,045) (4,693,838) (3,466,303) (5,646,067) (6,028,803) (14,705,552) (6,844,539) (18,253,987)
52,450,814 57,144,652 52,372,546 58,018,613 96,090,564 110,796,116 127,748,330 146,002,317
----------- ----------- ----------- ----------- ----------- ------------ ------------ ------------
$49,416,769 $52,450,814 $48,906,243 $52,372,546 $90,061,761 $ 96,090,564 $120,903,791 $127,748,330
=========== =========== =========== =========== =========== ============ ============ ============
</TABLE>
35
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MINNESOTA SERIES MISSOURI SERIES NEW YORK SERIES
--------------------------- ------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
------------ ------------ ----------- ----------- ----------- -----------
<C> <C> <C> <C> <S> <C>
OPERATIONS:
Net investment income ................. $ 2,667,154 $ 5,604,958 $ 1,032,016 $ 2,172,439 $ 1,968,744 $ 3,942,335
Net realized gain (loss) on investments 112,276 607,305 52,284 48,875 377,357 (30,466)
Net change in unrealized appreciation/
depreciation of investments ......... (1,074,317) (8,515,969) (215,791) (3,922,017) (829,549) (7,250,070)
------------ ------------ ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ..................... 1,705,113 (2,303,706) 868,509 (1,700,703) 1,516,552 (3,338,201)
------------ ------------ ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A .............................(2,651,369) (5,526,321) (1,020,501) (2,152,510) (1,902,451) (3,833,260)
Class C ............................ (443) -- (376) (274) (5,138) (1,806)
Class D ............................ (36,556) (78,637) (11,668) (19,655) (54,490) (107,269)
Net realized gain on investments:
Class A ............................ (602,100) (1,489,186) (47,099) (736,677) (49,722) (2,031,676)
Class C ............................ (34) -- (23) -- (156) --
Class D ............................ (10,902) (27,145) (823) (6,599) (1,656) (55,062)
----------- ------------ ----------- ----------- ----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS ................... (3,301,404) (7,121,289) (1,080,490) (2,915,715) (2,013,613) (6,029,073)
------------ ------------ ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .. 1,767,083 3,756,676 706,895 1,479,059 1,516,834 7,652,890
Investment of dividends ............ 1,720,746 3,721,959 476,717 1,107,523 1,113,913 2,390,775
Exchanged from associated Funds .... 83,458 827,963 165,708 521,150 2,199,586 5,429,214
Values of shares issued in payment of
gain distributions ............... 484,427 1,216,730 30,882 492,702 42,076 1,677,700
------------ ------------ ----------- ----------- ----------- -----------
Total ............................... 4,055,714 9,523,328 1,380,202 3,600,434 4,872,409 17,150,579
------------ ------------ ----------- ----------- ----------- -----------
Cost of shares repurchased .......... (9,096,758) (11,554,954) (4,147,449) (5,000,231) (6,523,490) (8,097,861)
Exchanged into associated Funds ..... (1,185,347) (998,565) (794,697) (275,964) (3,846,345) (6,823,431)
------------ ------------ ----------- ----------- ----------- -----------
Total .............................. (10,282,105) (12,553,519) (4,942,146) (5,276,195) (10,369,835) (14,921,292)
------------ ------------ ----------- ----------- ----------- -----------
FROM CAPITAL SHARE TRANSACTIONS . (6,226,391) (3,030,191) (3,561,944) (1,675,761) (5,497,426) 2,229,287
------------ ------------ ----------- ----------- ----------- -----------
DECREASE IN NET ASSETS ............. (7,822,682) (12,455,186) (3,773,925) (6,292,179) (5,994,487) (7,137,987)
NET ASSETS:
Beginning of period ................ 111,021,324 123,476,510 44,075,234 50,367,413 79,865,596 87,003,583
------------ ------------ ----------- ----------- ----------- -----------
END OF PERIOD ..................... $103,198,642 $111,021,324 $40,301,309 $44,075,234 $73,871,109 $79,865,596
============ ============ =========== =========== =========== ===========
</TABLE>
---------
See Notes to Financial Statements.
36
<PAGE>
<TABLE>
<CAPTION>
OHIO SERIES OREGON SERIES SOUTH CAROLINA SERIES
----------------------------- --------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
----------- ----------- ----------- ----------- ------------ ------------
<C> <C> <C> <C> <C> <C>
$ 3,476,849 $ 7,061,807 $ 1,333,174 $ 2,678,187 $ 2,380,272 $ 4,992,646
10,288 297,271 159,615 383,853 90,286 969,149
(1,110,780) (11,188,018) (551,487) (4,304,261) (554,731) (9,667,415)
----------- ------------ ----------- ----------- ------------ ------------
2,376,357 (3,828,940) 941,302 (1,242,221) 1,915,827 (3,705,620)
----------- ------------ ----------- ----------- ------------ ------------
(3,432,899) (7,006,935) (1,289,036) (2,584,867) (2,260,856) (4,761,901)
(310) (117) -- -- (11,071) (3,556)
(26,477) (54,755) (41,998) (93,320) (119,381) (227,189)
(333,273) (2,412,770) (375,263) (359,284) (901,229) (835,120)
-- -- -- -- (3,335) --
(3,062) (18,170) (15,117) (16,245) (58,374) (44,640)
----------- ------------ ----------- ----------- ------------ ------------
(3,796,021) (9,492,747) (1,721,414) (3,053,716) (3,354,246) (5,872,406)
----------- ------------ ----------- ----------- ------------ ------------
1,441,804 3,574,358 1,144,308 5,650,520 1,587,593 5,997,523
1,969,490 4,309,497 814,837 1,700,123 1,260,694 2,859,370
517,657 1,299,228 425,802 1,106,856 224,074 364,330
252,161 1,836,174 301,664 293,110 757,441 700,269
----------- ------------ ----------- ----------- ------------ ------------
4,181,112 11,019,257 2,686,611 8,750,609 3,829,802 9,921,492
----------- ------------ ----------- ----------- ------------ ------------
(7,754,223) (14,258,117) (3,175,506) (6,217,621) (8,170,917) (12,479,379)
(2,290,722) (1,290,220) (1,084,913) (1,784,796) (2,165,485) (721,823)
----------- ------------ ----------- ----------- ------------ ------------
(10,044,945) (15,548,337) (4,260,419) (8,002,417) (10,336,402) (13,201,202)
----------- ------------ ----------- ----------- ------------ ------------
(5,863,833) (4,529,080) (1,573,808) 748,192 (6,506,600) (3,279,710)
----------- ------------ ----------- ----------- ------------ ------------
(7,283,497) (17,850,767) (2,353,920) (3,547,745) (7,945,019) (12,857,736)
136,378,726 154,229,493 56,703,781 60,251,526 99,064,285 111,922,021
----------- ------------ ----------- ----------- ------------ ------------
$129,095,229 $136,378,726 $54,349,861 $56,703,781 $ 91,119,266 $ 99,064,285
============ ============ =========== =========== ============ ============
</TABLE>
37
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
38
<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-specific
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 accounting principles generally accepted in the United States
of America, 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 six months ended March 31, 2000, 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 six months ended March 31,
2000, were as follows:
SERIES PURCHASES SALES
-------------- ----------- ------------
National $ 5,990,480 $ 9,141,840
Colorado 1,591,784 6,000,669
Georgia 3,901,700 6,210,546
Louisiana -- 2,157,280
Maryland 2,250,000 4,497,830
Massachusetts 11,582,935 19,190,410
Michigan 5,849,040 13,590,295
Minnesota -- 7,180,000
Missouri 890,010 3,624,540
New York 1,495,920 6,765,642
Ohio 6,521,022 12,510,751
Oregon 5,954,500 7,543,160
South Carolina 3,102,380 10,182,368
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS
At March 31, 2000, 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 $1,143,123 $3,266,426
Colorado 650,169 1,773,667
Georgia 895,698 1,358,660
Louisiana 1,100,806 1,533,382
Maryland 1,282,218 810,351
Massachusetts 1,260,762 2,913,977
Michigan 2,692,891 2,425,208
Minnesota 2,051,053 3,855,239
Missouri 828,665 1,460,994
New York 1,323,043 2,382,595
Ohio 2,452,557 3,556,471
Oregon 1,104,896 1,605,836
South Carolina 1,174,744 2,875,545
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. Effective October 18, 1999, the
Manager, at its discretion, agreed to reimburse expenses, other than
distribution and service fees, that exceed 0.60% per annum of the average daily
net assets of each of Michigan Series, New York Series, and Ohio Series.
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 $2,040 $19,207
Colorado 2,098 15,201
Georgia 4,348 35,784
Louisiana 2,431 19,433
Maryland 1,241 9,481
Massachusetts 3,406 25,974
Michigan 4,247 29,230
Minnesota 8,060 55,761
Missouri 2,959 20,818
New York 2,176 17,204
Ohio 4,427 33,231
Oregon 4,789 32,172
South Carolina 3,688 30,164
The Fund has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to distribution of its shares. Under the Plan, with
respect to Class A shares, service organizations can enter into agreements with
the Distributor and receive continuing fees of up to 0.25% on an annual basis,
payable quarterly, of the average daily net assets of the Class A shares
attributable to the particular service organizations for providing personal
services and/or the maintenance of shareholder accounts. For the six months
ended March 31, 2000, the Distributor charged such fees to the Fund pursuant to
the Plan as follows:
TOTAL FEES % OF AVERAGE
SERIES PAID NET ASSETS
-------------- ---------- ------------
National $43,497 .10%
Colorado 20,666 .10
Georgia 20,259 .10
Louisiana 25,548 .10
Maryland 23,662 .10
Massachusetts 43,043 .10
Michigan 59,695 .10
Minnesota 51,181 .10
Missouri 19,903 .10
New York 35,689 .10
Ohio 63,622 .10
Oregon 26,370 .10
South Carolina 42,840 .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 six months ended
March 31, 2000, 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 $1,684 $33,176 Minnesota $ 100 $ 8,799
Colorado 229 4,135 Missouri 105 2,905
Georgia 894 11,228 New York 1,183 12,623
Louisiana 2,028 4,229 Ohio 71 6,104
Maryland 457 12,652 Oregon -- 10,568
Massachusetts 1,211 12,943 South
Michigan 1,141 9,870 Carolina 2,592 28,200
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
40
<PAGE>
shares occurring within one year after purchase. For the six months ended March
31, 2000, such charges were as follows:
SERIES SERIES
------------- -------------
National $ 3,472 Minnesota $ 218
Colorado 439 Missouri 193
Georgia 175 New York 786
Louisiana 60 Ohio 1,797
Maryland 20 Oregon 57
Massachusetts 592 South Carolina 182
Michigan 12,427
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 six months ended March 31, 2000,
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 $ 287 $3,755
Colorado 1,592 1,331
Georgia 51 393
Louisiana -- 439
Maryland 351 606
Massachusetts 276 1,094
Michigan 613 1,358
Minnesota 191 1,277
Missouri -- 1,249
New York 895 6,095
Ohio 142 1,936
Oregon 5 912
South Carolina 217 3,188
Seligman Data Corp., which is owned by certain associated investment
companies, charged at cost for shareholder account services the following
amounts:
SERIES SERIES
------------- ------------
National $69,372 Minnesota $86,107
Colorado 33,531 Missouri 34,358
Georgia 34,717 New York 51,411
Louisiana 35,765 Ohio 94,879
Maryland 38,380 Oregon 41,548
Massachusetts 67,230 South Carolina 71,340
Michigan 91,270
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 March 31, 2000, are included in other
liabilities as follows:
SERIES SERIES
------------- --------------
National $17,398 Minnesota $15,108
Colorado 11,299 Missouri 11,311
Georgia 10,689 New York 14,938
Louisiana 12,185 Ohio 15,243
Maryland 12,182 Oregon 11,173
Massachusetts 15,041 South Carolina 10,936
Michigan 14,744
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 six months ended March 31, 2000,
the Fund did not borrow 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.
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS
7. CAPITAL STOCK TRANSACTIONS--The Fund has 1,300,000,000 shares of Capital
Stock authorized. At March 31, 2000, 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
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
NATIONAL SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 365,222 $ 2,721,344 522,795 $ 4,248,236
Investment of dividends ........................... 164,290 1,226,389 326,477 2,639,265
Exchanged from associated Funds ................... 1,413,538 10,566,306 2,035,910 16,425,324
Shares issued in payment of gain distributions .... -- -- -- --
---------- ------------ ---------- ------------
Total ............................................. 1,943,050 14,514,039 2,885,182 23,312,825
---------- ------------ ---------- ------------
Shares repurchased ................................ (757,512) (5,630,842) (1,251,160) (10,091,427)
Exchanged into associated Funds ................... (866,529) (6,475,306) (2,125,455) (17,090,673)
---------- ------------ ---------- ------------
Total ............................................. (1,624,041) (12,106,148) (3,376,615) (27,182,100)
---------- ------------ ---------- ------------
Increase (decrease) ............................... 319,009 $ 2,407,891 (491,433) $ (3,869,275)
========== ============ ========== ============
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
COLORADO SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 86,866 $ 594,601 446,957 $ 3,319,830
Investment of dividends ........................... 78,556 539,328 165,388 1,232,318
Exchanged from associated Funds ................... 375,755 2,574,491 909,439 6,824,823
Shares issued in payment of gain distributions .... 31,384 218,746 -- --
---------- ------------ ---------- ------------
Total ............................................. 572,561 3,927,166 1,521,784 11,376,971
---------- ------------ ---------- ------------
Shares repurchased ................................ (912,480) (6,275,550) (555,222) (4,113,017)
Exchanged into associated Funds ................... (235,216) (1,625,517) (642,500) (4,774,441)
---------- ------------ ---------- ------------
Total ............................................. (1,147,696) (7,901,067) (1,197,722) (8,887,458)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (575,135) $ (3,973,901) 324,062 $ 2,489,513
========== ============ ========== ============
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
GEORGIA SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 250,955 $ 1,880,318 316,556 $ 2,581,779
Investment of dividends ........................... 71,698 531,373 169,142 1,378,731
Exchanged from associated Funds ................... 2,001 14,924 107,712 888,905
Shares issued in payment of gain distributions .... 98,005 734,060 24,233 200,164
---------- ------------ ---------- ------------
Total ............................................. 422,659 3,160,675 617,643 5,049,579
---------- ------------ ---------- ------------
Shares repurchased ................................ (703,131) (5,213,606) (809,338) (6,556,764)
Exchanged into associated Funds ................... (100,912) (742,242) (75,068) (609,761)
---------- ------------ ---------- ------------
Total ............................................. (804,043) (5,955,848) (884,406) (7,166,525)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (381,384) $ (2,795,173) (266,763) $ (2,116,946)
========== ============ ========== ============
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
LOUISIANA SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 101,710 $ 769,916 286,860 $ 2,335,829
Investment of dividends ........................... 68,956 523,425 153,834 1,263,489
Exchanged from associated Funds ................... 5,557 41,790 8,079 67,137
Shares issued in payment of gain distributions .... 26,416 202,874 58,865 490,938
---------- ------------ ---------- ------------
Total ............................................. 202,639 1,538,005 507,638 4,157,393
---------- ------------ ---------- ------------
Shares repurchased ................................ (545,880) (4,138,595) (496,701) (4,067,199)
Exchanged into associated Funds ................... (34,037) (256,242) (27,551) (224,567)
---------- ------------ ---------- ------------
Total ............................................. (579,917) (4,394,837) (524,252) (4,291,766)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (377,278) $ (2,856,832) (16,614) $ (134,373)
========== ============ ========== ============
</TABLE>
42
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
45,972 $ 345,080 14,919 $118,601 15,673 $ 117,169 123,246 $ 1,007,356
542 4,041 77 594 10,901 81,343 21,570 173,587
6,512 48,188 -- -- 271,404 2,023,011 697,233 5,637,065
-- -- -- -- -- -- -- --
------- --------- ------ -------- -------- ----------- -------- -----------
53,026 397,309 14,996 119,195 297,978 2,221,523 842,049 6,818,008
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (8) -- -- (239,034) (1,786,160) (209,777) (1,694,433)
(6,533) (47,822) -- -- (605,153) (4,500,855) (468,791) (3,866,250)
------- --------- ------ -------- -------- ----------- -------- -----------
(6,534) (47,830) -- -- (844,187) (6,287,015) (678,568) (5,560,683)
------- --------- ------ -------- -------- ----------- -------- -----------
46,492 $ 349,479 14,996 $119,195 (546,209) $(4,065,492) 163,481 $ 1,257,325
======= ========= ====== ======== ======== =========== ======== ===========
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
2,289 $ 15,540 28,937 $209,488 2,616 $ 18,020 54,407 $ 409,646
82 567 40 290 400 2,743 2,384 17,858
7,142 47,856 -- -- 4,116 28,071 41,999 318,470
60 418 -- -- 192 1,336 -- --
------- --------- ------ -------- -------- ----------- -------- -----------
9,573 64,381 28,977 209,778 7,324 50,170 98,790 745,974
------- --------- ------ -------- -------- ----------- -------- -----------
(1,861) (12,905) (6,956) (49,460) (14,841) (103,911) (1,952) (14,492)
(7,095) (48,177) (13,536) (97,324) (5,786) (39,052) (12,506) (94,848)
------- --------- ------ -------- -------- ----------- -------- -----------
(8,956) (61,082) (20,492) (146,784) (20,627) (142,963) (14,458) (109,340)
------- --------- ------ -------- -------- ----------- -------- -----------
617 $ 3,299 8,485 $ 62,994 (13,303) $ (92,793) 84,332 $ 636,634
======= ========= ====== ======== ======== =========== ======== ===========
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1,428 $ 10,356 22,407 $180,954 27,702 $ 206,227 60,850 $ 503,915
489 3,634 212 1,669 3,071 22,824 9,056 74,089
-- -- -- -- 4,315 32,541 6,834 56,261
523 3,925 -- -- 4,462 33,506 1,562 12,933
------- --------- ------ -------- -------- ----------- -------- -----------
2,440 17,915 22,619 182,623 39,550 295,098 78,302 647,198
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (8) -- -- (32,494) (241,053) (104,845) (853,647)
-- -- -- -- (14,648) (109,000) (9,346) (77,176)
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (8) -- -- (47,142) (350,053) (114,191) (930,823)
------- --------- ------ -------- -------- ----------- -------- -----------
2,439 $ 17,907 22,619 $182,623 (7,592) $ (54,955) (35,889) $ (283,625)
======= ========= ====== ======== ======== =========== ======== ===========
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
77,017 $ 586,644 1 $ 8 1,309 $ 9,965 36,897 $ 303,293
1,032 7,800 -- -- 756 5,741 2,320 19,102
-- -- -- -- -- -- 1,465 12,220
237 1,820 -- -- 215 1,646 944 7,862
------- --------- ------ -------- -------- ----------- -------- -----------
78,286 596,264 1 8 2,280 17,352 41,626 342,477
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (8) -- -- (10,073) (76,394) (23,790) (197,294)
-- -- -- -- (6,313) (47,591) -- --
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (8) -- -- (16,386) (123,985) (23,790) (197,294)
------- --------- ------ -------- -------- ----------- -------- -----------
78,285 $ 596,256 1 $ 8 (14,106) $ (106,633) 17,836 $ 145,183
======= ========= ====== ======== ======== =========== ======== ===========
</TABLE>
* Commencement of offering of Class C shares.
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
MARYLAND SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 41,254 $ 313,868 219,835 $ 1,796,871
Investment of dividends ........................... 87,821 669,647 185,215 1,505,823
Exchanged from associated Funds ................... 33,227 252,944 31,342 253,207
Shares issued in payment of gain distributions .... 2,416 18,654 16,816 138,396
---------- ------------ ---------- ------------
Total ............................................. 164,718 1,255,113 453,208 3,694,297
---------- ------------ ---------- ------------
Shares repurchased ................................ (465,994) (3,555,700) (666,448) (5,412,629)
Exchanged into associated Funds ................... (29,062) (220,692) (29,780) (241,553)
---------- ------------ ---------- ------------
Total ............................................. (495,056) (3,776,392) (696,228) (5,654,182)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (330,338) $ (2,521,279) (243,020) $ (1,959,885)
========== ============ ========== ============
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
MASSACHUSETTS SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 105,036 $ 759,548 394,021 $ 3,161,511
Investment of dividends ........................... 183,927 1,331,393 346,377 2,758,847
Exchanged from associated Funds ................... 1,304,707 9,418,840 2,678,695 21,337,252
Shares issued in payment of gain distributions .... 71,399 525,499 56,744 460,197
---------- ------------ ---------- ------------
Total ............................................. 1,665,069 12,035,280 3,475,837 27,717,807
---------- ------------ ---------- ------------
Shares repurchased ................................ (1,395,210) (10,137,878) (1,208,459) (9,620,904)
Exchanged into associated Funds ................... (788,311) (5,762,331) (3,050,731) (24,293,627)
---------- ------------ ---------- ------------
Total ............................................. (2,183,521) (15,900,209) (4,259,190) (33,914,531)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (518,452) $ (3,864,929) (783,353) $ (6,196,724)
========== ============ ========== ============
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
MICHIGAN SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 332,845 $ 2,628,342 566,910 $ 4,817,469
Investment of dividends ........................... 222,784 1,761,027 460,956 3,901,810
Exchanged from associated Funds ................... 51,855 410,737 61,998 530,458
Shares issued in payment of gain distributions .... 45,931 367,908 221,134 1,897,325
---------- ------------ ---------- ------------
Total ............................................. 653,415 5,168,014 1,310,998 11,147,062
---------- ------------ ---------- ------------
Shares repurchased ................................ (1,185,443) (9,368,949) (1,838,104) (15,497,098)
Exchanged into associated Funds ................... (293,346) (2,307,236) (192,577) (1,646,007)
---------- ------------ ---------- ------------
Total ............................................. (1,478,789) (11,676,185) (2,030,681) (17,143,105)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (825,374) $ (6,508,171) (719,683) $ (5,996,043)
========== ============ ========== ============
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
MINNESOTA SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 231,592 $ 1,657,851 448,156 $ 3,467,423
Investment of dividends ........................... 237,450 1,702,552 475,864 3,675,004
Exchanged from associated Funds ................... 3,286 23,286 79,497 621,391
Shares issued in payment of gain distributions .... 65,604 476,943 153,173 1,196,281
---------- ------------ ---------- ------------
Total ............................................. 537,932 3,860,632 1,156,690 8,960,099
---------- ------------ ---------- ------------
Shares repurchased ................................ (1,237,876) (8,859,621) (1,415,157) (10,904,586)
Exchanged into associated Funds ................... (151,058) (1,083,299) (131,646) (998,565)
---------- ------------ ---------- ------------
Total ............................................. (1,388,934) (9,942,920) (1,546,803) (11,903,151)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (851,002) $ (6,082,288) (390,113) $ (2,943,052)
========== ============ ========== ============
</TABLE>
44
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
3,337 $ 25,733 9,572 $ 76,445 10,044 $ 76,749 59,308 $ 487,229
47 356 1 8 4,852 37,052 12,056 98,236
-- -- -- -- 798 6,000 6,029 49,773
-- -- -- -- 146 1,130 1,266 10,428
------- --------- ------ -------- -------- ----------- -------- -----------
3,384 26,089 9,573 76,453 15,840 120,931 78,659 645,666
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (8) -- -- (64,944) (493,981) (92,244) (753,873)
-- -- -- -- (7,688) (59,143) (6,195) (49,882)
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (8) -- -- (72,632) (553,124) (98,439) (803,755)
------- --------- ------ -------- -------- ----------- -------- -----------
3,383 $ 26,081 9,573 $ 76,453 (56,792) $ (432,193) (19,780) $ (158,089)
======= ========= ====== ======== ======== =========== ======== ===========
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
8,620 $ 63,397 30,519 $233,167 1,113 $ 8,103 144,406 $ 1,169,254
451 3,254 14 103 4,359 31,498 6,391 50,273
8,455 61,216 21 157 4,060 30,178 166,950 1,348,159
113 831 -- -- 1,803 13,249 648 5,256
------- --------- ------ -------- -------- ----------- -------- -----------
17,639 128,698 30,554 233,427 11,335 83,028 318,395 2,572,942
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (7) -- -- (34,185) (249,567) (78,032) (613,957)
(8,233) (60,845) -- -- (160,196) (1,159,036) (25,100) (197,221)
------- --------- ------ -------- -------- ----------- -------- -----------
(8,234) (60,852) -- -- (194,381) (1,408,603) (103,132) (811,178)
------- --------- ------ -------- -------- ----------- -------- -----------
9,405 $ 67,846 30,554 $233,427 (183,046) $(1,325,575) 215,263 $ 1,761,764
======= ========= ====== ======== ======== =========== ======== ===========
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
20,397 $ 163,167 14,221 $116,801 57,525 $ 456,769 90,158 $ 772,545
131 1,030 28 226 3,057 24,137 7,291 61,648
-- -- -- -- 1,918 15,067 34,906 305,268
26 212 -- -- 717 5,733 3,830 32,823
------- --------- ------ -------- -------- ----------- -------- -----------
20,554 164,409 14,249 117,027 63,217 501,706 136,185 1,172,284
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (8) -- -- (90,336) (708,313) (86,833) (719,396)
-- -- -- -- (28,352) (225,320) -- --
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (8) -- -- (118,688) (933,633) (86,833) (719,396)
------- --------- ------ -------- -------- ----------- -------- -----------
20,553 $ 164,401 14,249 $117,027 (55,471) $ (431,927) 49,352 $ 452,888
======= ========= ====== ======== ======== =========== ======== ===========
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
6,967 $ 49,922 1 $ 8 8,106 $ 59,310 37,069 $ 289,245
54 382 -- -- 2,482 17,812 6,072 46,955
-- -- -- -- 8,357 60,172 26,054 206,572
5 35 -- -- 1,025 7,449 2,615 20,449
------- --------- ------ -------- -------- ----------- -------- -----------
7,026 50,339 1 8 19,970 144,743 71,810 563,221
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (7) -- -- (33,055) (237,130) (83,338) (650,368)
(1,605) (11,400) -- -- (12,636) (90,648) -- --
------- --------- ------ -------- -------- ----------- -------- -----------
(1,606) (11,407) -- -- (45,691) (327,778) (83,338) (650,368)
------- --------- ------ -------- -------- ----------- -------- -----------
5,420 $ 38,932 1 $ 8 (25,721) $ (183,035) (11,528) $ (87,147)
======= ========= ====== ======== ======== =========== ======== ===========
</TABLE>
* Commencement of offering of Class C shares.
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
MISSOURI SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 92,018 $ 654,795 143,714 $ 1,117,391
Investment of dividends ........................... 65,880 467,966 141,770 1,091,323
Exchanged from associated Funds ................... 6,087 43,061 63,527 497,543
Shares issued in payment of gain distributions .... 4,183 30,163 62,316 486,691
---------- ------------ ---------- ------------
Total ............................................. 168,168 1,195,985 411,327 3,192,948
---------- ------------ ---------- ------------
Shares repurchased ................................ (559,584) (3,963,761) (640,800) (4,889,919)
Exchanged into associated Funds ................... (87,791) (623,693) (33,222) (255,281)
---------- ------------ ---------- ------------
Total ............................................. (647,375) (4,587,454) (674,022) (5,145,200)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (479,207) $ (3,391,469) (262,695) $ (1,952,252)
========== ============ ========== ============
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
NEW YORK SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 175,068 $ 1,310,232 802,995 $ 6,593,637
Investment of dividends ........................... 144,903 1,087,412 284,109 2,315,942
Exchanged from associated Funds ................... 277,566 2,071,448 589,737 4,819,554
Shares issued in payment of gain distributions .... 5,397 41,071 196,696 1,630,608
---------- ------------ ---------- ------------
Total ............................................. 602,934 4,510,163 1,873,537 15,359,741
---------- ------------ ---------- ------------
Shares repurchased ................................ (809,311) (6,091,838) (952,833) (7,728,238)
Exchanged into associated Funds ................... (490,157) (3,681,459) (803,766) (6,577,087)
---------- ------------ ---------- ------------
Total ............................................. (1,299,468) (9,773,297) (1,756,599) (14,305,325)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (696,534) $ (5,263,134) 116,938 $ 1,054,416
========== ============ ========== ============
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
OHIO SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 165,387 $ 1,235,248 361,672 $ 2,918,252
Investment of dividends ........................... 261,914 1,950,152 530,982 4,266,794
Exchanged from associated Funds ................... 36,507 268,553 134,140 1,074,172
Shares issued in payment of gain distributions .... 33,096 249,874 223,380 1,820,544
---------- ------------ ---------- ------------
Total ............................................. 496,904 3,703,827 1,250,174 10,079,762
---------- ------------ ---------- ------------
Shares repurchased ................................ (991,057) (7,374,583) (1,741,673) (13,920,913)
Exchanged into associated Funds ................... (273,334) (2,034,571) (131,868) (1,057,828)
---------- ------------ ---------- ------------
Total ............................................. (1,264,391) (9,409,154) (1,873,541) (14,978,741)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (767,487) $ (5,705,327) (623,367) $ (4,898,979)
========== ============ ========== ============
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
OREGON SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 149,700 $ 1,092,956 679,526 $ 5,340,535
Investment of dividends ........................... 109,221 794,725 209,299 1,637,871
Exchanged from associated Funds ................... 41,158 296,671 130,494 1,028,496
Shares issued in payment of gain distributions .... 39,867 293,823 35,501 281,167
---------- ------------ ---------- ------------
Total ............................................. 339,946 2,478,175 1,054,820 8,288,069
---------- ------------ ---------- ------------
Shares repurchased ................................ (402,137) (2,931,989) (706,461) (5,517,373)
Exchanged into associated Funds ................... (130,834) (954,822) (226,571) (1,784,105)
---------- ------------ ---------- ------------
Total ............................................. (532,971) (3,886,811) (933,032) (7,301,478)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (193,025) $ (1,408,636) 121,788 $ 986,591
========== ============ ========== ============
</TABLE>
46
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
-- -- 2,887 $ 21,877 7,220 $ 52,100 43,815 $ 339,791
38 $ 273 27 202 1,195 8,478 2,082 15,998
-- -- -- -- 17,129 122,647 2,979 23,607
3 23 -- -- 97 696 770 6,011
------- --------- ------ -------- -------- ----------- -------- -----------
41 296 2,914 22,079 25,641 183,921 49,646 385,407
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (7) -- -- (26,017) (183,681) (14,354) (110,312)
-- -- -- -- (23,925) (171,004) (2,657) (20,683)
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (7) -- -- (49,942) (354,685) (17,011) (130,995)
------- --------- ------ -------- -------- ----------- -------- -----------
40 $ 289 2,914 $ 22,079 (24,301) $ (170,764) 32,635 $ 254,412
======= ========= ====== ======== ======== =========== ======== ===========
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
13,366 $ 101,262 35,036 $278,217 14,015 $ 105,340 94,489 $ 781,036
246 1,850 83 644 3,280 24,651 9,087 74,189
-- -- -- -- 17,161 128,138 72,704 609,660
12 92 -- -- 120 913 5,681 47,092
------- --------- ------ -------- -------- ----------- -------- -----------
13,624 103,204 35,119 278,861 34,576 259,042 181,961 1,511,977
------- --------- ------ -------- -------- ----------- -------- -----------
(4,488) (33,034) (5,721) (45,709) (52,613) (398,618) (39,787) (323,914)
-- -- (4,833) (37,500) (21,867) (164,886) (26,500) (208,844)
------- --------- ------ -------- -------- ----------- -------- -----------
(4,488) (33,034) (10,554) (83,209) (74,480) (563,504) (66,287) (532,758)
------- --------- ------ -------- -------- ----------- -------- -----------
9,136 $ 70,170 24,565 $195,652 (39,904) $ (304,462) 115,674 $ 979,219
======= ========= ====== ======== ======== =========== ======== ===========
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
13,280 $ 99,468 2,248 $ 17,828 14,175 $ 107,088 78,121 $ 638,278
15 115 13 95 2,568 19,223 5,281 42,608
-- -- -- -- 33,572 249,104 27,382 225,056
-- -- -- -- 301 2,287 1,911 15,630
------- --------- ------ -------- -------- ----------- -------- -----------
13,295 99,583 2,261 17,923 50,616 377,702 112,695 921,572
------- --------- ------ -------- -------- ----------- -------- -----------
(2,267) (17,228) -- -- (48,265) (362,412) (42,299) (337,204)
-- -- -- -- (34,823) (256,151) (28,756) (232,392)
------- --------- ------ -------- -------- ----------- -------- -----------
(2,267) (17,228) -- -- (83,088) (618,563) (71,055) (569,596)
------- --------- ------ -------- -------- ----------- -------- -----------
11,028 $ 82,355 2,261 $ 17,923 (32,472) $ (240,861) 41,640 $ 351,976
======= ========= ====== ======== ======== =========== ======== ===========
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
-- -- 1 $ 8 7,079 $ 51,352 39,323 $ 309,977
-- -- -- -- 2,766 20,112 7,942 62,252
-- -- -- -- 17,910 129,131 9,849 78,360
-- -- -- -- 1,064 7,841 1,508 11,943
------- --------- ------ -------- -------- ----------- -------- -----------
-- -- 1 8 28,819 208,436 58,622 462,532
------- --------- ------ -------- -------- ----------- -------- -----------
-- -- -- -- (33,269) (243,517) (89,753) (700,248)
-- -- -- -- (18,216) (130,091) (87) (691)
------- --------- ------ -------- -------- ----------- -------- -----------
-- -- -- -- (51,485) (373,608) (89,840) (700,939)
------- --------- ------ -------- -------- ----------- -------- -----------
-- -- 1 $ 8 (22,666) $ (165,172) (31,218) $ (238,407)
======= ========= ====== ======== ======== =========== ======== ===========
</TABLE>
* Commencement of offering of Class C shares.
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99
-------------------------- --------------------------
SOUTH CAROLINA SERIES SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales of shares ................................... 155,687 $ 1,156,501 495,837 $ 4,009,453
Investment of dividends ........................... 159,247 1,180,277 333,372 2,699,308
Exchanged from associated Funds ................... 19,462 141,481 39,056 319,755
Shares issued in payment of gain distributions .... 95,104 715,184 80,358 661,343
---------- ------------ ---------- ------------
Total ............................................. 429,500 3,193,443 948,623 7,689,859
---------- ------------ ---------- ------------
Shares repurchased ................................ (1,000,146) (7,428,522) (1,450,098) (11,588,440)
Exchanged into associated Funds ................... (278,768) (2,054,650) (76,691) (620,953)
---------- ------------ ---------- ------------
Total ............................................. (1,278,914) (9,483,172) (1,526,789) (12,209,393)
---------- ------------ ---------- ------------
Increase (decrease) ............................... (849,414) $ (6,289,729) (578,166) $ (4,519,534)
========== ============ ========== ============
</TABLE>
48
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS C CLASS D
----------------------------------------- --------------------------------------------------
SIX MONTHS ENDED 5/27/99* TO SIX MONTHS ENDED YEAR ENDED
3/31/00 9/30/99 3/31/00 9/30/99
-------------------- ----------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- --------- ------ -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
35,995 $ 270,471 43,342 $344,052 21,727 $ 160,621 201,377 $ 1,644,018
1,432 10,579 403 3,128 9,432 69,838 19,414 156,934
-- -- -- -- 11,020 82,593 5,412 44,575
444 3,335 -- -- 5,183 38,922 4,735 38,926
------- --------- ------ -------- -------- ----------- -------- -----------
37,871 284,385 43,745 347,180 47,362 351,974 230,938 1,884,453
------- --------- ------ -------- -------- ----------- -------- -----------
(1) (7) -- -- (100,842) (742,388) (111,023) (890,939)
(6,828) (51,000) -- -- (8,189) (59,835) (12,742) (100,870)
------- --------- ------ -------- -------- ----------- -------- -----------
(6,829) (51,007) -- -- (109,031) (802,223) (123,765) (991,809)
------- --------- ------ -------- -------- ----------- -------- -----------
31,042 $ 233,378 43,745 $347,180 (61,669) $ (450,249) 107,173 $ 892,644
======= ========= ====== ======== ======== =========== ======== ===========
</TABLE>
* Commencement of offering of Class C shares.
49
<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 and one-half years or
from its inception if less than five and one-half 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
------------------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.68 $8.32 $8.01 $7.70 $7.58 $7.18 $7.68 $8.08
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.20 0.39 0.39 0.39 0.40 0.40 0.16 0.11
Net realized and unrealized gain (loss)
on investments ............................... (0.08) (0.64) 0.31 0.31 0.12 0.40 (0.08) (0.40)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.12 (0.25) 0.70 0.70 0.52 0.80 0.08 (0.29)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.20) (0.39) (0.39) (0.39) (0.40) (0.40) (0.16) (0.11)
Distributions from net realized capital gain ... -- -- -- -- -- -- -- --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.20) (0.39) (0.39) (0.39) (0.40) (0.40) (0.16) (0.11)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $7.60 $7.68 $8.32 $8.01 $7.70 $7.58 $7.60 $7.68
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 1.56% (3.11)% 9.00% 9.40% 6.97% 11.48% 1.11% (3.38)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $91,771 $90,296 $101,909 $97,481 $98,767 $104,184 $467 $115
Ratio of expenses to average net assets ........ 0.86%+ 0.83% 0.80% 0.84% 0.80% 0.86% 1.76%+ 1.74%+
Ratio of net income to average net assets ...... 5.24%+ 4.83% 4.82% 5.05% 5.19% 5.46% 4.34%+ 4.10%+
Portfolio turnover rate ........................ 6.47% 13.37% 18.00% 20.63% 33.99% 24.91% 6.47% 13.37%++
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.68 $8.31 $8.02 $7.70 $7.57 $7.18
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.16 0.32 0.32 0.32 0.33 0.32
Net realized and unrealized gain (loss)
on investments ............................... (0.08) (0.63) 0.29 0.32 0.13 0.39
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.08 (0.31) 0.61 0.64 0.46 0.71
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.16) (0.32) (0.32) (0.32) (0.33) (0.32)
Distributions from net realized capital gain ... -- -- -- -- -- --
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.16) (0.32) (0.32) (0.32) (0.33) (0.32)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $7.60 $7.68 $8.31 $8.02 $7.70 $7.57
======= ======= ======== ======= ======= ========
TOTAL RETURN: 1.11% (3.85)% 7.76% 8.56% 6.13% 10.17%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $ 3,847 $ 8,079 $ 7,392 $ 2,279 $ 4,826 $ 1,215
Ratio of expenses to average net assets ........ 1.76%+ 1.73% 1.71% 1.75% 1.67% 1.95%
Ratio of net income to average net assets ...... 4.34%+ 3.93% 3.91% 4.15% 4.27% 4.40%
Portfolio turnover rate ........................ 6.47% 13.37% 18.00% 20.63% 33.99% 24.91%
</TABLE>
----------
See footnotes on page 62.
50
<PAGE>
FINANCIAL HIGHLIGHTS
COLORADO SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------ ----------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------ ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.10 $7.64 $7.42 $7.27 $7.30 $7.09 $7.09 $7.47
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.17 0.34 0.36 0.37 0.37 0.38 0.15 0.10
Net realized and unrealized gain (loss)
on investments ............................... (0.09) (0.54) 0.22 0.15 (0.03) 0.21 (0.09) (0.38)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.08 (0.20) 0.58 0.52 0.34 0.59 0.06 (0.28)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.17) (0.34) (0.36) (0.37) (0.37) (0.38) (0.14) (0.10)
Distributions from net realized capital gain ... (0.05) -- -- -- -- -- (0.05) --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.22) (0.34) (0.36) (0.37) (0.37) (0.38) (0.19) (0.10)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $6.96 $7.10 $7.64 $7.42 $7.27 $7.30 $6.96 $7.09
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: (1.24)% (2.67)% 8.03% 7.30% 4.76% 8.56% 0.93% (3.93)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $39,799 $44,649 $45,583 $49,780 $52,295 $54,858 $63 $60
Ratio of expenses to average net assets ........ 0.90%+ 0.87% 0.90% 0.90% 0.85% 0.93% 1.80%+ 1.73%+
Ratio of net income to average net assets ...... 5.04%+ 4.60% 4.80% 5.01% 5.07% 5.31% 4.14%+ 3.85%+
Portfolio turnover rate ........................ 3.88% 7.91% 28.66% 3.99% 12.39% 14.70% 3.88% 7.91%++
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.09 $7.63 $7.42 $7.27 $7.29 $7.09
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.15 0.28 0.29 0.30 0.31 0.30
Net realized and unrealized gain (loss)
on investments ............................... (0.09) (0.54) 0.21 0.15 (0.02) 0.20
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.06 (0.26) 0.50 0.45 0.29 0.50
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.14) (0.28) (0.29) (0.30) (0.31) (0.30)
Distributions from net realized capital gain ... (0.05) -- -- -- -- --
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.19) (0.28) (0.29) (0.30) (0.31) (0.30)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $6.96 $7.09 $7.63 $7.42 $7.27 $7.29
======= ======= ======== ======= ======= ========
TOTAL RETURN: 0.93% (3.57)% 6.90% 6.34% 3.95% 7.26%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $808 $917 $344 $238 $255 $193
Ratio of expenses to average net assets ........ 1.80% 1.77% 1.80% 1.81% 1.75% 2.02%
Ratio of net income to average net assets ...... 4.14% 3.70% 3.90% 4.10% 4.17% 4.23%
Portfolio turnover rate ........................ 3.88% 7.91% 28.66% 3.99% 12.39% 14.70%
</TABLE>
----------
See footnotes on page 62.
51
<PAGE>
FINANCIAL HIGHLIGHTS
GEORGIA SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------ ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.75 $8.38 $8.12 $7.87 $7.81 $7.48 $7.76 $8.17
------ ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.19 0.37 0.38 0.38 0.39 0.39 0.16 0.11
Net realized and unrealized gain (loss)
on investments ............................... (0.05) (0.58) 0.29 0.28 0.11 0.43 (0.04) (0.41)
------ ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.14 (0.21) 0.67 0.66 0.50 0.82 0.12 (0.30)
------ ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.19) (0.37) (0.38) (0.38) (0.39) (0.39) (0.16) (0.11)
Distributions from net realized capital gain ... (0.17) (0.05) (0.03) (0.03) (0.05) (0.10) (0.17) --
------ ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.36) (0.42) (0.41) (0.41) (0.44) (0.49) (0.33) (0.11)
------ ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $7.53 $7.75 $8.38 $8.12 $7.87 $7.81 $7.55 $7.76
====== ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 1.93% (2.63)% 8.44% 8.65% 6.56% 11.66% 1.61% (3.84)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $38,628 $42,692 $48,424 $50,614 $50,995 $57,678 $189 $176
Ratio of expenses to average net assets ........ 0.90%+ 0.87% 0.89% 0.89% 0.83% 0.91% 1.80%+ 1.74%+
Ratio of net income to average net assets ...... 5.02%+ 4.59% 4.57% 4.82% 4.94% 5.26% 4.12%+ 3.89%+
Portfolio turnover rate ........................ 9.29% 23.93% 2.92% 12.28% 16.24% 3.36% 9.29% 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%
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.76 $8.40 $8.13 $7.88 $7.82 $7.49
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.16 0.30 0.30 0.31 0.32 0.32
Net realized and unrealized gain (loss)
on investments ............................... (0.04) (0.59) 0.30 0.28 0.11 0.43
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.12 (0.29) 0.60 0.59 0.43 0.75
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.16) (0.30) (0.30) (0.31) (0.32) (0.32)
Distributions from net realized capital gain ... (0.17) (0.05) (0.03) (0.03) (0.05) (0.10)
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.33) (0.35) (0.33) (0.34) (0.37) (0.42)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $7.55 $7.76 $8.40 $8.13 $7.88 $7.82
======= ======= ======== ======= ======= ========
TOTAL RETURN: 1.61% (3.61)% 7.59% 7.67% 5.60% 10.58%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $2,196 $2,318 $2,809 $2,640 $2,327 $2,079
Ratio of expenses to average net assets ........ 1.80%+ 1.77% 1.80% 1.79% 1.73% 1.90%
Ratio of net income to average net assets ...... 4.12%+ 3.69% 3.66% 3.92% 4.03% 4.28%
Portfolio turnover rate ........................ 9.29% 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 62.
52
<PAGE>
FINANCIAL HIGHLIGHTS
LOUISIANA SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.81 $8.51 $8.28 $8.16 $8.14 $7.94 $7.80 $8.19
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.20 0.39 0.41 0.41 0.42 0.43 0.16 0.11
Net realized and unrealized gain (loss)
on investments ............................... (0.05) (0.59) 0.24 0.23 0.08 0.34 (0.04) (0.39)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.15 (0.20) 0.65 0.64 0.50 0.77 0.12 (0.28)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.20) (0.39) (0.41) (0.41) (0.42) (0.43) (0.16) (0.11)
Distributions from net realized capital gain ... (0.05) (0.11) (0.01) (0.11) (0.06) (0.14) (0.05) --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.25) (0.50) (0.42) (0.52) (0.48) (0.57) (0.21) (0.11)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $7.71 $7.81 $8.51 $8.28 $8.16 $8.14 $7.71 $7.80
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 1.88% (2.44)% 8.08% 8.17% 6.32% 10.30% 1.55% (3.55)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $48,025 $51,543 $56,308 $56,199 $57,264 $61,988 $604 $ --
Ratio of expenses to average net assets ........ 0.88%+ 0.84% 0.88% 0.86% 0.82% 0.89% 1.78% 1.71%+
Ratio of net income to average net assets ...... 5.15%+ 4.76% 4.86% 5.08% 5.15% 5.44% 4.25% 4.00%+
Portfolio turnover rate ........................ -- 8.67% 15.72% 16.08% 10.08% 4.82% -- 8.67%++
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.80 $8.50 $8.27 $8.16 $8.14 $7.94
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.16 0.32 0.33 0.34 0.35 0.35
Net realized and unrealized gain (loss)
on investments ............................... (0.04) (0.59) 0.24 0.22 0.08 0.34
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.12 (0.27) 0.57 0.56 0.43 0.69
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.16) (0.32) (0.33) (0.34) (0.35) (0.35)
Distributions from net realized capital gain ... (0.05) (0.11) (0.01) (0.11) (0.06) (0.14)
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.21) (0.43) (0.34) (0.45) (0.41) (0.49)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $7.71 $7.80 $8.50 $8.27 $8.16 $8.14
======= ======= ======== ======= ======= ========
TOTAL RETURN: 1.55% (3.33)% 7.11% 7.07% 5.37% 9.17%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $788 $908 $837 $509 $389 $465
Ratio of expenses to average net assets ........ 1.78%+ 1.74% 1.78% 1.76% 1.72% 1.91%
Ratio of net income to average net assets ...... 4.25%+ 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 62.
53
<PAGE>
FINANCIAL HIGHLIGHTS
MARYLAND SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.79 $8.32 $8.14 $7.99 $7.96 $7.71 $7.80 $8.13
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.20 0.39 0.40 0.40 0.40 0.41 0.16 0.11
Net realized and unrealized gain (loss)
on investments ............................... (0.07) (0.50) 0.23 0.19 0.06 0.38 (0.08) (0.33)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.13 (0.11) 0.63 0.59 0.46 0.79 0.08 (0.22)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.20) (0.39) (0.40) (0.40) (0.40) (0.41) (0.16) (0.11)
Distributions from net realized capital gain ... -- (0.03) (0.05) (0.04) (0.03) (0.13) -- --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.20) (0.42) (0.45) (0.44) (0.43) (0.54) (0.16) (0.11)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $7.72 $7.79 $8.32 $8.14 $7.99 $7.96 $7.72 $7.80
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 1.71% (1.45)% 7.89% 7.64% 6.00% 10.90% 1.12% (2.83)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $46,497 $49,523 $54,891 $52,549 $54,041 $56,290 $100 $75
Ratio of expenses to average net assets ........ 0.90%+ 0.87% 0.89% 0.90% 0.84% 0.96% 1.80%+ 1.75%+
Ratio of net income to average net assets ...... 5.15%+ 4.77% 4.82% 4.99% 5.05% 5.31% 4.25%+ 4.04%+
Portfolio turnover rate ........................ 4.60% 1.80% 7.59% 14.79% 5.56% 3.63% 4.60% 1.80%++
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.80 $8.33 $8.15 $7.99 $7.97 $7.72
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.16 0.31 0.32 0.33 0.33 0.33
Net realized and unrealized gain (loss)
on investments ............................... (0.08) (0.50) 0.23 0.20 0.05 0.38
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.08 (0.19) 0.55 0.53 0.38 0.71
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.16) (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 ............................ (0.16) (0.34) (0.37) (0.37) (0.36) (0.46)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $7.72 $7.80 $8.33 $8.15 $7.99 $7.97
======= ======= ======== ======= ======= ========
TOTAL RETURN: 1.12% (2.00)% 6.91% 6.80% 4.91% 9.75%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $2,310 $2,775 $3,128 $2,063 $2,047 $630
Ratio of expenses to average net assets ........ 1.80%+ 1.77% 1.80% 1.81% 1.72% 2.02%
Ratio of net income to average net assets ...... 4.25%+ 3.87% 3.91% 4.08% 4.14% 4.27%
Portfolio turnover rate ........................ 4.60% 1.80% 7.59% 14.79% 5.56% 3.63%
</TABLE>
----------
See footnotes on page 62.
54
<PAGE>
FINANCIAL HIGHLIGHTS
MASSACHUSETTS SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.47 $8.27 $7.99 $7.85 $7.91 $7.66 $7.47 $7.96
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.19 0.36 0.38 0.40 0.41 0.42 0.15 0.10
Net realized and unrealized gain (loss)
on investments ............................... (0.01) (0.75) 0.37 0.22 0.05 0.28 (0.02) (0.49)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.18 (0.39) 0.75 0.62 0.46 0.70 0.13 (0.39)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.19) (0.36) (0.38) (0.40) (0.41) (0.42) (0.15) (0.10)
Distributions from net realized capital gain ... (0.06) (0.05) (0.09) (0.08) (0.11) (0.03) (0.06) --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.25) (0.41) (0.47) (0.48) (0.52) (0.45) (0.21) (0.10)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $7.40 $7.47 $8.27 $7.99 $7.85 $7.91 $7.39 $7.47
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 2.37% (4.85)% 9.80% 8.11% 5.97% 9.58% 1.77% (5.02)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $88,215 $92,929 $109,328 $110,011 $109,872 $115,711 $ 295 $ 228
Ratio of expenses to average net assets ........ 0.85%+ 0.83% 0.80% 0.84% 0.80% 0.86% 1.75%+ 1.73%+
Ratio of net income to average net assets ...... 5.06%+ 4.56% 4.72% 5.06% 5.24% 5.51% 4.16%+ 3.80%+
Portfolio turnover rate ........................ 13.04% 23.88% 13.41% 29.26% 26.30% 16.68% 13.04% 23.88%++
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.47 $8.26 $7.99 $7.84 $7.90 $7.66
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.15 0.29 0.31 0.33 0.34 0.34
Net realized and unrealized gain (loss)
on investments ............................... (0.02) (0.74) 0.36 0.23 0.05 0.27
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.13 (0.45) 0.67 0.56 0.39 0.61
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.15) (0.29) (0.31) (0.33) (0.34) (0.34)
Distributions from net realized capital gain ... (0.06) (0.05) (0.09) (0.08) (0.11) (0.03)
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.21) (0.34) (0.40) (0.41) (0.45) (0.37)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $7.39 $7.47 $8.26 $7.99 $7.84 $7.90
======= ======= ======== ======= ======= ========
TOTAL RETURN: 1.77% (5.61)% 8.68% 7.29% 5.01% 8.33%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $1,551 $2,934 $1,468 $1,245 $1,405 $809
Ratio of expenses to average net assets ........ 1.75%+ 1.73% 1.71% 1.74% 1.70% 1.95%
Ratio of net income to average net assets ...... 4.16%+ 3.66% 3.81% 4.16% 4.32% 4.47%
Portfolio turnover rate ........................ 13.04% 23.88% 13.41% 29.26% 26.30% 16.68%
</TABLE>
----------
See footnotes on page 62.
55
<PAGE>
FINANCIAL HIGHLIGHTS
MICHIGAN SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $8.04 $8.83 $8.60 $8.46 $8.54 $8.28 $8.03 $8.43
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.21 0.40 0.41 0.43 0.45 0.46 0.17 0.11
Net realized and unrealized gain (loss)
on investments ............................... 0.04 (0.63) 0.30 0.23 0.06 0.30 0.04 (0.40)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.25 (0.23) 0.71 0.66 0.51 0.76 0.21 (0.29)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.21) (0.40) (0.41) (0.43) (0.45) (0.46) (0.17) (0.11)
Distributions from net realized capital gain ... (0.03) (0.16) (0.07) (0.09) (0.14) (0.04) (0.03) --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.24) (0.56) (0.48) (0.52) (0.59) (0.50) (0.20) (0.11)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $8.05 $8.04 $8.83 $8.60 $8.46 $8.54 $8.04 $8.03
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 3.14% (2.77)% 8.63% 8.16% 6.16% 9.56% 2.69% (3.55)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $118,994 $125,560 $144,161 $143,370 $148,178 $151,589 $280 $114
Ratio of expenses to average net assets ........ 0.71%+ 0.82% 0.79% 0.81% 0.78% 0.87% 1.61%+ 1.73%+
Ratio of net income to average net assets ...... 5.24%+ 4.73% 4.78% 5.13% 5.29% 5.50% 4.34%+ 3.96%+
Portfolio turnover rate ........................ 4.89% 3.73% 23.60% 10.98% 19.62% 20.48% 4.89% 3.73%++
Without expense reimbursement:*
Net investment income per share ................ $0.20 $0.17
Ratio of expenses to average net assets ........ 0.84%+ 1.74%+
Ratio of net income to average net assets ...... 5.11%+ 4.21%+
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $8.03 $8.82 $8.59 $8.45 $8.54 $8.28
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.17 0.32 0.33 0.36 0.37 0.37
Net realized and unrealized gain (loss)
on investments ............................... 0.04 (0.63) 0.30 0.23 0.05 0.30
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.21 (0.31) 0.63 0.59 0.42 0.67
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.17) (0.32) (0.33) (0.36) (0.37) (0.37)
Distributions from net realized capital gain ... (0.03) (0.16) (0.07) (0.09) (0.14) (0.04)
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.20) (0.48) (0.40) (0.45) (0.51) (0.41)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $8.04 $8.03 $8.82 $8.59 $8.45 $8.54
======= ======= ======== ======= ======= ========
TOTAL RETURN: 2.69% (3.65)% 7.66% 7.19% 5.09% 8.36%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $1,630 $2,074 $1,841 $1,845 $1,486 $1,172
Ratio of expenses to average net assets ........ 1.61%+ 1.72% 1.70% 1.71% 1.68% 2.01%
Ratio of net income to average net assets ...... 4.34%+ 3.83% 3.87% 4.23% 4.39% 4.40%
Portfolio turnover rate ........................ 4.89% 3.73% 23.60% 10.98% 19.62% 20.48%
Without expense reimbursement:*
Net investment income per share ................ $0.17
Ratio of expenses to average net assets ........ 1.74%+
Ratio of net income to average net assets ...... 4.21%+
</TABLE>
----------
See footnotes on page 62.
56
<PAGE>
FINANCIAL HIGHLIGHTS
MINNESOTA SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.36 $7.98 $7.79 $7.68 $7.82 $7.72 $7.36 $7.72
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.18 0.36 0.38 0.40 0.42 0.45 0.15 0.10
Net realized and unrealized gain (loss)
on investments ............................... (0.06) (0.52) 0.20 0.11 (0.12) 0.11 (0.06) (0.36)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.12 (0.16) 0.58 0.51 0.30 0.56 0.09 (0.26)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.18) (0.36) (0.38) (0.40) (0.42) (0.45) (0.15) (0.10)
Distributions from net realized capital gain ... (0.04) (0.10) (0.01) -- (0.02) (0.01) (0.04) --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.22) (0.46) (0.39) (0.40) (0.44) (0.46) (0.19) (0.10)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $7.26 $7.36 $7.98 $7.79 $7.68 $7.82 $7.26 $7.36
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 1.73% (2.09)% 7.68% 6.85% 3.99% 7.61% 1.27% (3.47)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $101,515 $109,165 $121,374 $121,674 $126,173 $132,716 $39 $ --
Ratio of expenses to average net assets ........ 0.86%+ 0.84% 0.81% 0.85% 0.81% 0.87% 1.76%+ 1.74%+
Ratio of net income to average net assets ...... 5.04%+ 4.71% 4.87% 5.21% 5.47% 5.89% 4.14%+ 3.94%+
Portfolio turnover rate ........................ -- 9.74% 21.86% 6.88% 26.89% 5.57% -- 9.74%++
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.36 $7.98 $7.79 $7.68 $7.82 $7.73
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.15 0.30 0.31 0.33 0.35 0.38
Net realized and unrealized gain (loss)
on investments ............................... (0.06) (0.52) 0.20 0.11 (0.12) 0.10
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.09 (0.22) 0.51 0.44 0.23 0.48
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.15) (0.30) (0.31) (0.33) (0.35) (0.38)
Distributions from net realized capital gain ... (0.04) (0.10) (0.01) -- (0.02) (0.01)
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.19) (0.40) (0.32) (0.33) (0.37) (0.39)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. 7.26 $7.36 $7.98 $7.79 $7.68 $7.82
======= ======= ======== ======= ======= ========
TOTAL RETURN: 1.27% (2.96)% 6.71% 5.89% 3.06% 6.45%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $1,644 $1,856 $2,103 $1,799 $2,036 $2,237
Ratio of expenses to average net assets ........ 1.76%+ 1.74% 1.72% 1.75% 1.71% 1.85%
Ratio of net income to average net assets ...... 4.14%+ 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 62.
57
<PAGE>
FINANCIAL HIGHLIGHTS
MISSOURI SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.29 $8.03 $7.82 $7.71 $7.70 $7.41 $7.29 $7.68
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.18 0.35 0.36 0.38 0.39 0.40 0.14 0.10
Net realized and unrealized gain (loss)
on investments ............................... (0.01) (0.62) 0.28 0.19 0.08 0.36 (0.01) (0.39)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.17 (0.27) 0.64 0.57 0.47 0.76 0.13 (0.29)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.18) (0.35) (0.36) (0.38) (0.39) (0.40) (0.14) (0.10)
Distributions from net realized capital gain ... (0.01) (0.12) (0.07) (0.08) (0.07) (0.07) (0.01) --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.19) (0.47) (0.43) (0.46) (0.46) (0.47) (0.15) (0.10)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $7.27 $7.29 $8.03 $7.82 $7.71 $7.70 $7.27 $7.29
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 2.30% (3.58)% 8.41% 7.70% 6.27% 10.67% 1.84% (3.95)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $39,841 $43,437 $49,949 $52,766 $49,941 $51,169 $21 $21
Ratio of expenses to average net assets ........ 0.91%+ 0.87% 0.89% 0.89% 0.86% 0.88% 1.81%+ 1.74%+
Ratio of net income to average net assets ...... 4.91%+ 4.50% 4.59% 4.93% 5.03% 5.31% 4.01%+ 3.75%+
Portfolio turnover rate ........................ 2.19% 10.43% 21.26% 6.47% 8.04% 3.88% 2.19% 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%
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.29 $8.03 $7.82 $7.72 $7.70 $7.41
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.14 0.28 0.29 0.31 0.32 0.32
Net realized and unrealized gain (loss)
on investments ............................... (0.01) (0.62) 0.28 0.18 0.09 0.36
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.13 (0.34) 0.57 0.49 0.41 0.68
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.14) (0.28) (0.29) (0.31) (0.32) (0.32)
Distributions from net realized capital gain ... (0.01) (0.12) (0.07) (0.08) (0.07) (0.07)
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.15) (0.40) (0.36) (0.39) (0.39) (0.39)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $7.27 $7.29 $8.03 $7.82 $7.72 $7.70
======= ======= ======== ======= ======= ========
TOTAL RETURN: 1.84% (4.46)% 7.45% 6.60% 5.46% 9.49%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $439 $617 $418 $474 $565 $515
Ratio of expenses to average net assets ........ 1.81%+ 1.77% 1.79% 1.80% 1.76% 1.98%
Ratio of net income to average net assets ...... 4.01%+ 3.60% 3.69% 4.02% 4.13% 4.23%
Portfolio turnover rate ........................ 2.19% 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 62.
58
<PAGE>
FINANCIAL HIGHLIGHTS
NEW YORK SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.70 $8.60 $8.28 $7.98 $7.86 $7.67 $7.70 $8.14
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.20 0.38 0.40 0.41 0.42 0.42 0.16 0.11
Net realized and unrealized gain (loss)
on investments ............................... (0.04) (0.69) 0.40 0.32 0.12 0.36 (0.03) (0.44)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.16 (0.31) 0.80 0.73 0.54 0.78 0.13 (0.33)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.20) (0.38) (0.40) (0.41) (0.42) (0.42) (0.16) (0.11)
Distributions from net realized capital gain ... (0.01) (0.21) (0.08) (0.02) -- (0.17) (0.01) --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.21) (0.59) (0.48) (0.43) (0.42) (0.59) (0.17) (0.11)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $7.65 $7.70 $8.60 $8.28 $7.98 $7.86 $7.66 $7.70
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 2.02% (3.86)% 10.02% 9.45% 6.97% 10.93% 1.70% (4.22)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $71,090 $76,833 $84,822 $83,528 $82,719 $83,980 $258 $189
Ratio of expenses to average net assets ........ 0.71%+ 0.81% 0.81% 0.82% 0.77% 0.88% 1.61%+ 1.69%+
Ratio of net income to average net assets ...... 5.23%+ 4.63% 4.74% 5.09% 5.24% 5.52% 4.33%+ 3.96%+
Portfolio turnover rate ........................ 2.04% 11.85% 39.85% 23.83% 25.88% 34.05% 2.04% 11.85%++
Without expense reimbursement:*
Net investment income per share ................ $0.19 $0.16
Ratio of expenses to average net assets ........ 0.83%+ 1.73%+
Ratio of net income to average net assets ...... 5.11%+ 4.21%+
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.70 $8.60 $8.29 $7.98 $7.87 $7.67
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.16 0.30 0.32 0.34 0.34 0.34
Net realized and unrealized gain (loss)
on investments ............................... (0.03) (0.69) 0.39 0.33 0.11 0.37
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.13 (0.39) 0.71 0.67 0.45 0.71
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.16) (0.30) (0.32) (0.34) (0.34) (0.34)
Distributions from net realized capital gain ... (0.01) (0.21) (0.08) (0.02) -- (0.17)
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.17) (0.51) (0.40) (0.36) (0.34) (0.51)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $7.66 $7.70 $8.60 $8.29 $7.98 $7.87
======= ======= ======== ======= ======= ========
TOTAL RETURN: 1.70% (4.73)% 8.88% 8.60% 5.86% 9.87%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $2,523 $2,844 $2,182 $1,572 $1,152 $885
Ratio of expenses to average net assets ........ 1.61%+ 1.71% 1.72% 1.73% 1.68% 1.96%
Ratio of net income to average net assets ...... 4.33%+ 3.73% 3.83% 4.18% 4.33% 4.42%
Portfolio turnover rate ........................ 2.04% 11.85% 39.85% 23.83% 25.88% 34.05%
Without expense reimbursement:*
Net investment income per share ................ $0.16
Ratio of expenses to average net assets ........ 1.73%+
Ratio of net income to average net assets ...... 4.21%+
</TABLE>
----------
See footnotes on page 62.
59
<PAGE>
FINANCIAL HIGHLIGHTS
OHIO SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.64 $8.37 $8.19 $8.09 $8.11 $7.90 $7.68 $8.06
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.20 0.38 0.40 0.42 0.43 0.44 0.16 0.11
Net realized and unrealized gain (loss)
on investments ............................... (0.06) (0.60) 0.29 0.17 0.02 0.28 (0.05) (0.38)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.14 (0.22) 0.69 0.59 0.45 0.72 0.11 (0.27)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.20) (0.38) (0.40) (0.42) (0.43) (0.44) (0.16) (0.11)
Distributions from net realized capital gain ... (0.02) (0.13) (0.11) (0.07) (0.04) (0.07) (0.02) --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.22) (0.51) (0.51) (0.49) (0.47) (0.51) (0.18) (0.11)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $7.56 $7.64 $8.37 $8.19 $8.09 $8.11 $7.61 $7.68
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 1.82% (2.68)% 8.77% 7.54% 5.68% 9.59% 1.50% (3.51)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $127,926 $135,034 $153,126 $154,419 $162,243 $170,191 $101 $18
Ratio of expenses to average net assets ........ 0.71%+ 0.81% 0.78% 0.81% 0.77% 0.84% 1.61%+ 1.71%+
Ratio of net income to average net assets ...... 5.28%+ 4.78% 4.92% 5.19% 5.32% 5.56% 4.38%+ 3.99%+
Portfolio turnover rate ........................ 5.09% 6.07% 24.74% 11.76% 12.90% 2.96% 5.09% 6.07%++
Without expense reimbursement:*
Net investment income per share ................ $0.19 $0.16
Ratio of expenses to average net assets ........ 0.84%+ 1.74%+
Ratio of net income to average net assets ...... 5.15%+ 4.25%+
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.68 $8.41 $8.23 $8.13 $8.15 $7.92
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.16 0.31 0.33 0.35 0.36 0.36
Net realized and unrealized gain (loss)
on investments ............................... (0.05) (0.60) 0.29 0.17 0.02 0.30
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.11 (0.29) 0.62 0.52 0.38 0.66
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.16) (0.31) (0.33) (0.35) (0.36) (0.36)
Distributions from net realized capital gain ... (0.02) (0.13) (0.11) (0.07) (0.04) (0.07)
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.18) (0.44) (0.44) (0.42) (0.40) (0.43)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $7.61 $7.68 $8.41 $8.23 $8.13 $8.15
======= ======= ======== ======= ======= ========
TOTAL RETURN: 1.50% (3.52)% 7.78% 6.57% 4.74% 8.67%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $1,068 $1,327 $1,103 $1,160 $1,011 $660
Ratio of expenses to average net assets ........ 1.61%+ 1.71% 1.69% 1.71% 1.67% 1.93%
Ratio of net income to average net assets ...... 4.38%+ 3.88% 4.01% 4.29% 4.42% 4.48%
Portfolio turnover rate ........................ 5.09% 6.07% 24.74% 11.76% 12.90% 2.96%
Without expense reimbursement:*
Net investment income per share ................ $0.16
Ratio of expenses to average net assets ........ 1.74%+
Ratio of net income to average net assets ...... 4.25%+
</TABLE>
----------
See footnotes on page 62.
60
<PAGE>
FINANCIAL HIGHLIGHTS
OREGON SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.48 $8.05 $7.87 $7.65 $7.66 $7.43 $7.48 $7.83
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.18 0.35 0.36 0.38 0.40 0.40 0.15 0.10
Net realized and unrealized gain (loss)
on investments ............................... (0.05) (0.52) 0.28 0.26 -- 0.25 (0.05) (0.35)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.13 (0.17) 0.64 0.64 0.40 0.65 0.10 (0.25)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.18) (0.35) (0.36) (0.38) (0.40) (0.40) (0.15) (0.10)
Distributions from net realized capital gain ... (0.05) (0.05) (0.10) (0.04) (0.01) (0.02) (0.05) --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.23) (0.40) (0.46) (0.42) (0.41) (0.42) (0.20) (0.10)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $7.38 $7.48 $8.05 $7.87 $7.65 $7.66 $7.38 $7.48
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 1.80% (2.16)% 8.48% 8.60% 5.27% 9.05% 1.34% (3.32)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $52,316 $54,473 $57,601 $55,239 $57,345 $59,549 $ -- $ --
Ratio of expenses to average net assets ........ 0.89%+ 0.86% 0.88% 0.90% 0.86% 0.86% 1.79%+ 1.73%+
Ratio of net income to average net assets ...... 4.90%+ 4.52% 4.60% 4.88% 5.18% 5.40% 4.00%+ 3.77%+
Portfolio turnover rate ........................ 11.20% 12.28% 12.62% 19.46% 28.65% 2.47% 11.20% 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%
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.48 $8.04 $7.87 $7.64 $7.65 $7.43
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.15 0.28 0.29 0.31 0.33 0.33
Net realized and unrealized gain (loss)
on investments ............................... (0.05) (0.51) 0.27 0.27 -- 0.24
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.10 (0.23) 0.56 0.58 0.33 0.57
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.15) (0.28) (0.29) (0.31) (0.33) (0.33)
Distributions from net realized capital gain ... (0.05) (0.05) (0.10) (0.04) (0.01) (0.02)
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.20) (0.33) (0.39) (0.35) (0.34) (0.35)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $7.38 $7.48 $8.04 $7.87 $7.64 $7.65
======= ======= ======== ======= ======= ========
TOTAL RETURN: 1.34% (2.92)% 7.37% 7.77% 4.33% 7.86%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $2,034 $2,231 $2,650 $1,678 $1,540 $1,495
Ratio of expenses to average net assets ........ 1.79%+ 1.76% 1.79% 1.80% 1.76% 1.83%
Ratio of net income to average net assets ...... 4.00%+ 3.62% 3.69% 3.98% 4.28% 4.41%
Portfolio turnover rate ........................ 11.20% 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 62.
61
<PAGE>
FINANCIAL HIGHLIGHTS
SOUTH CAROLINA SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30, SIX MONTHS 5/27/99**
ENDED ------------------------------------------------- ENDED TO
3/31/00 1999 1998 1997 1996 1995 3/31/00 9/30/99
------- ------- -------- ------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.67 $8.38 $8.16 $8.07 $7.97 $7.61 $7.66 $8.08
------- ------- -------- ------- ------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.19 0.38 0.39 0.40 0.41 0.41 0.16 0.11
Net realized and unrealized gain (loss)
on investments ............................... (0.02) (0.64) 0.29 0.22 0.12 0.37 (0.02) (0.42)
------- ------- -------- ------- ------- -------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.17 (0.26) 0.68 0.62 0.53 0.78 0.14 (0.31)
------- ------- -------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.19) (0.38) (0.39) (0.40) (0.41) (0.41) (0.16) (0.11)
Distributions from net realized capital gain ... (0.08) (0.07) (0.07) (0.13) (0.02) (0.01) (0.08) --
------- ------- -------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS ............................ (0.27) (0.45) (0.46) (0.53) (0.43) (0.42) (0.24) (0.11)
------- ------- -------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD ................. $7.57 $7.67 $8.38 $8.16 $8.07 $7.97 $7.56 $7.66
======= ======= ======== ======= ======= ======== ======= =======
TOTAL RETURN: 2.28% (3.32)% 8.66% 7.99% 6.82% 10.69% 1.81% (4.01)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $85,161 $92,793 $106,328 $101,018 $108,163 $112,421 $565 $335
Ratio of expenses to average net assets ........ 0.85%+ 0.83% 0.80% 0.84% 0.80% 0.88% 1.75% 1.72%+
Ratio of net income to average net assets ...... 5.13%+ 4.65% 4.74% 5.04% 5.15% 5.38% 4.23% 3.96%+
Portfolio turnover rate ........................ 3.39% 18.06% 16.63% -- 20.66% 4.13% 3.39% 18.06%++
<CAPTION>
CLASS D
-------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------
3/31/00 1999 1998 1997 1996 1995
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $7.66 $8.38 $8.16 $8.06 $7.97 $7.61
------- ------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.16 0.30 0.31 0.33 0.34 0.34
Net realized and unrealized gain (loss)
on investments ............................... (0.02) (0.65) 0.29 0.23 0.11 0.37
------- ------- -------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 0.14 (0.35) 0.60 0.56 0.45 0.71
------- ------- -------- ------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.16) (0.30) (0.31) (0.33) (0.34) (0.34)
Distributions from net realized capital gain ... (0.08) (0.07) (0.07) (0.13) (0.02) (0.01)
------- ------- -------- ------- ------- --------
TOTAL DISTRIBUTIONS ............................ (0.24) (0.37) (0.38) (0.46) (0.36) (0.35)
------- ------- -------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD ................. $7.56 $7.66 $8.38 $8.16 $8.06 $7.97
======= ======= ======== ======= ======= ========
TOTAL RETURN: 1.81% (4.32)% 7.68% 7.15% 5.73% 9.63%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $5,393 $5,936 $5,594 $3,663 $2,714 $1,704
Ratio of expenses to average net assets ........ 1.75% 1.73% 1.71% 1.75% 1.70% 1.85%
Ratio of net income to average net assets ...... 4.23% 3.75% 3.83% 4.13% 4.25% 4.40%
Portfolio turnover rate ........................ 3.39% 18.06% 16.63% -- 20.66% 4.13%
</TABLE>
----------
* During the periods stated, the Manager, at its discretion, reimbursed
expenses and/or waived portions of its fees for the Georgia, Michigan,
Missouri, New York, Ohio and Oregon Series.
** Commencement of offering of Class C shares.
+ Annualized.
++ For the year ended September 30, 1999.
See Notes to Financial Statements.
62
<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 March 31, 2000, and the related statements of operations
for the six months then ended, the statements of changes in net assets for the
six months then ended and for the year ended September 30, 1999, 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 auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements.
Our procedures included confirmation of securities owned as of March 31, 2000,
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, the 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 March 31, 2000, the results of their operations for the six months then
ended, the changes in their net assets, and their financial highlights for all
the respective stated periods, in conformity with accounting principles
generally accepted in the United States of America.
/S/ Deloitte & Touche LLP
--------------------------------
DELOITTE & TOUCHE LLP
New York, New York
May 5, 2000
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
63
<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
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
EXECUTIVE OFFICERS
WILLIAM C. MORRIS BRIAN T. ZINO THOMAS G. MOLES
CHAIRMAN PRESIDENT VICE PRESIDENT
LAWRENCE P. VOGEL THOMAS G. ROSE FRANK J. NASTA
VICE PRESIDENT TREASURER SECRETARY
64
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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.
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Adapted from the Investment Company Institute's 1999 MUTUAL FUND FACT BOOK.
65
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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
[SELIGMAN LOGO]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 PARK AVENUE, NEW YORK, NY 10017
TEA3 3/00 [RECYCLE LOGO] PRINTED ON RECYCLED PAPER
