SELIGMAN
------------------------
MUNICIPAL FUND [Graphic Omitted]
SERIES, INC.
ANNUAL REPORT
SEPTEMBER 30, 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
[Graphic Omitted] 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
JAMES, JESSE, AND America became an industrial power, the firm helped fund the
JOSEPH SELIGMAN, growing capital needs of the nascent automobile and steel
1870 industries.
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 ............................ 17
Statements of Assets and Liabilities ................. 36
Statements of Operations ............................. 38
Statements of Changes in Net Assets .................. 40
Notes to Financial Statements ........................ 45
Financial Highlights ................................. 56
Report of Independent Auditors ....................... 69
Board of Directors ................................... 70
Executive Officers AND For More Information .......... 71
Glossary of Financial Terms .......................... 72
<PAGE>
TO THE SHAREHOLDERS
The past year has been an increasingly positive one for fixed-income securities.
The beginning of 2000 saw a climate of rising interest rates and uncertainty
about the US economy's direction. As the year progressed, however, general
economic trends and the law of supply and demand--lower issuances and higher
investor demand--converged to create a more favorable environment for bonds
overall and municipal bonds specifically. These factors were reflected in the
strong performances of the Series in Seligman Municipal Fund Series this year.
By June of this year it was apparent that the Federal Reserve Board's efforts to
slow the economy to a more sustainable pace were having an effect. Leading
economic indicators such as new home sales, manufacturing, corporate earnings,
and retail sales all pointed to an economy that is still strong, but whose
growth has slowed. The Fed responded to these signs by leaving interest rates
untouched in June, August, and October of this year.
Despite the slowing, the Fed indicated that inflation is still a concern going
forward because of high oil prices, the continued tight labor market, and the
fact that consumer spending still outpaces personal income. Nonetheless, because
of the presidential election and given the economic slowdown, we don't
anticipate further rate hikes in 2000, although they can't be ruled out at some
point in 2001.
Against this backdrop of stabilizing interest rates, both Treasuries and
municipal bonds have benefited from an environment of shrinking supply and
increased demand. The Treasury Department's debt buyback program, initiated in
January 2000 and intended to pay down the national debt, has reduced the supply
of Treasuries. In the case of municipal bonds, the strong economy has increased
government tax revenues, and many cities and states have therefore issued fewer
bonds for the purpose of raising funds. Moreover, higher interest rates have
made it more costly for municipalities to borrow money, further reducing the
pool of available municipal bonds. These two factors should work in conjunction
to restrain new issue supply, thus increasing the possibility of rising market
prices for issued municipal bonds.
At the same time, inflation fears and earnings warnings caused great volatility
in the stock market this year, prompting some equity investors to seek greater
stability in municipal and other fixed-income securities. If recent stock market
volatility continues and if market returns remain lackluster, there will be
further increased demand for the tax-free returns and the diversifying effect of
municipal bonds.
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 each Series' portfolio 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
November 10, 2000
<PAGE>
INTERVIEW WITH YOUR PORTFOLIO MANAGER,
THOMAS G. MOLES
Q: WHAT ECONOMIC AND MARKET FACTORS HAVE INFLUENCED SELIGMAN MUNICIPAL FUND
SERIES DURING THE PAST TWELVE MONTHS?
A: Throughout the period, the direction of the municipal bond market was
influenced by a combination of factors, including the state of the economy,
supply and demand dynamics, and the planned reduction in US Treasury debt
issuance. At this time last year, long-term yields were trending higher in
response to a strengthening economy. By the start of the new year, it
appeared that the pace of growth was moderating and long-term municipal
yields began a long-awaited decline, supported by a slowdown in municipal
new issue supply. However, the rally would prove premature as the economy,
once again, surprised financial markets with its resilience, sending bond
yields sharply higher. It would take another round of tightening by the
Federal Reserve Board in May to reverse the bond market decline and to
restore investor confidence. For the remainder of Seligman Municipal Fund
Series' fiscal year, municipal market sentiment was optimistic, which
contributed to the positive performance of the market and of Seligman
Municipal Fund Series.
Municipal new issue supply declined during the year due mostly to a
significant reduction in refunding volume. The higher cost of borrowing
prevented many issuers from retiring outstanding, higher-coupon debt through
the issuance of refunding bonds. Among individual states, issuance varied
widely, creating both challenges and opportunities for the Series. The lack
of supply helped to stabilize the market during periods of rising interest
rates.
In January 2000, the US Treasury Department announced its proposal to
eliminate the national debt by 2013 through a reduction in future issuance
and the buyback of outstanding Treasury issues. This decision had
wide-ranging implications, not the least of which was the impact on the
Treasury yield curve. As the supply of the benchmark 30-year Treasury bond
began to contract, the yield curve inverted, and the 30-year Treasury yield
fell below the 10-year yield. While the municipal yield curve remained
positively sloped during the period, it was nevertheless influenced by the
behavior of the Treasury curve, and the spread between short-term and
long-term municipal yields narrowed significantly. This flattening, together
with the overall decline in interest rates, caused long-term municipal
bonds, which comprise the majority of each of the Series, to significantly
outperform short- and intermediate-term municipal bonds.
The unprecedented prosperity of the past decade has improved the financial
status of the nation's states, cities, and municipalities. Credit rating
upgrades have exceeded downgrades by a wide margin in recent years, a trend
that is expected to continue. Further, the companies that insure municipal
bonds have seen their profit picture improve as a result of more
conservative underwriting policies, as well as an expansion into new,
[Picture Omitted]
SELIGMAN MUNICIPALS TEAM: (STANDING, FROM LEFT) AUDREY KUCHTYAK, DEBRA
MCGUINNESS, (SEATED, FROM LEFT) EILEEN COMERFORD, THERESA BARION, 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
and often more lucrative, markets. Seligman Municipal Fund Series has a
significant percentage of insured bonds in its portfolios. The
creditworthiness of these holdings is enhanced by a strengthening municipal
insurance industry.
Q: WHAT WAS YOUR STRATEGY?
A: During the past year, periods of rising interest rates negatively impacted
net asset values among the Series in the Fund. As a result, Seligman
Municipal Fund Series experienced an increase in redemptions that
necessitated the selling of portfolio holdings. Given our positive long-term
outlook for the municipal market, we opted to reduce holdings of defensive
securities in order to better position the Fund to benefit from an expected
future decline in rates. Purchases were concentrated in long-term bonds
because they continue to offer the highest yields and provide the greatest
potential for price appreciation during periods of declining interest rates.
(Conversely, when interest rates rise, long-term bonds will depreciate more
in price than shorter maturity bonds.) This strategy caused the Series to
underperform the market while rates were still climbing, but contributed to
the competitive investment performance reported for Seligman Municipal Fund
Series' fiscal year.
The Series in the Fund remain diversified among the various sectors of the
municipal market. While we seek opportunities in all sectors, we have
increased our focus in the health care sector, which has been experiencing
financial difficulties due primarily to a reduction in government
reimbursements and the growth of managed care. Many hospitals have been
downgraded by municipal rating agencies and remain vulnerable to further
credit deterioration. However, there are still many well-managed,
financially secure hospitals that are trading at attractive levels because
of the negative outlook for the industry as a whole. Through in-depth credit
analysis, we have been able to identify several opportunities and have
selectively purchased health care bonds. Our seasoned municipal team
continually monitors all portfolio holdings to ensure that they meet our
credit criteria.
Q: WHAT IS YOUR OUTLOOK?
A: The Fed voted to leave policy unchanged at its October meeting, a move
widely anticipated by the financial markets. The decision was motivated by
growing evidence of a slowdown in the pace of US economic growth. Further,
productivity improvements continue to contain labor costs despite the lowest
unemployment rate in over 30 years. However, the Fed stressed its intention
to remain vigilant for signs of a buildup in inflationary pressures given
prevailing tight labor markets and the more recent uptick in energy costs.
Until the Fed has declared a victory in the war on inflation, interest rates
will likely fluctuate in response to the latest economic reports. Any upward
movement in long-term interest rates should continue to be tempered by the
supply contraction in the Treasury and municipal markets. Investment
performance for Seligman Municipal Fund Series' fiscal year has been
positive, and we remain hopeful that the year 2000 will end on a positive
note as well.
3
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
The following charts compare a $10,000 hypothetical investment made in each
Series of Seligman Municipal Fund Series Class A shares, with and without the
initial 4.75% maximum sales charge, and assume that all distributions within the
period are invested in additional shares, for the 10-year period ended September
30, 2000, to a $10,000 hypothetical investment made in the Lehman Brothers
Municipal Bond Index (Lehman Index) for the same period. The performances of
each Series of Seligman Municipal Fund Series Class C and Class D shares are not
shown in the charts but are included in the table below each chart. It is
important to keep in mind that the Lehman Index does not include any fees or
sales charges, and does not reflect state-specific bond market performance. The
table below each chart also includes relevant portfolio characteristics for each
Series. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE INVESTMENT RESULTS.
NATIONAL SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9526 10000 10000
12/31/90 10066 10567 10431
3/31/91 10240 10749 10667
6/30/91 10457 10977 10894
9/30/91 10883 11424 11318
12/31/91 11221 11779 11698
3/31/92 11194 11751 11733
6/30/92 11640 12219 12179
9/30/92 11845 12434 12502
12/31/92 12106 12708 12729
3/31/93 12719 13351 13201
6/30/93 13217 13874 13633
9/30/93 13740 14424 14094
12/31/93 13812 14499 14291
3/31/94 12679 13310 13507
6/30/94 12756 13390 13657
9/30/94 12665 13295 13749
12/31/94 12438 13057 13551
3/31/95 13464 14134 14510
6/30/95 13808 14495 14859
9/30/95 14119 14821 15287
12/31/95 14938 15681 15917
3/31/96 14614 15341 15724
6/30/96 14713 15445 15846
9/30/96 15103 15854 16210
12/31/96 15436 16204 16623
3/31/97 15349 16112 16585
6/30/97 15933 16726 17157
9/30/97 16523 17344 17675
12/31/97 17038 17885 18154
3/31/98 17240 18097 18363
6/30/98 17494 18365 18642
9/30/98 18009 18905 19215
12/31/98 18003 18898 19330
3/31/99 18101 19001 19502
6/30/99 17807 18693 19157
9/30/99 17449 18317 19080
12/31/99 17055 17903 18931
3/31/00 17722 18604 19486
6/30/00 17859 18747 19780
9/30/00 18300 19210 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
-----------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------ ----- ----- ----- --------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.66)% (0.07)% 4.30% 6.23% n/a n/a
Without Sales Charge 3.26 4.88 5.33 6.75 n/a n/a
CLASS C**
With Sales Charge and CDSC 0.74 1.88 n/a n/a (1.37)% n/a
Without Sales Charge and CDSC 2.80 3.94 n/a n/a 0.06 n/a
CLASS D**
With 1% CDSC 1.80 2.94 n/a n/a n/a n/a
Without CDSC 2.80 3.94 4.41 n/a n/a 3.16%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
<CAPTION>
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
--------- --------- --------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.65 $7.60 $7.68 CLASS A $0.390 -- 4.69%
CLASS C 7.65 7.60 7.68 CLASS C 0.321 -- 4.01
CLASS D 7.65 7.60 7.68 CLASS D 0.321 -- 4.05
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 79% Aaa/AAA 36%
General Obligation Bondsoo 21 Aa/AA 31
A/A 24
Baa/BBB 9
WEIGHTED AVERAGE MATURITY 24.7 years
</TABLE>
----------------
See footnotes on page 16.
4
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
COLORADO SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9531 10000 10000
12/31/90 9911 10398 10431
3/31/91 10076 10572 10667
6/30/91 10259 10764 10894
9/30/91 10594 11115 11318
12/31/91 10842 11375 11698
3/31/92 10818 11350 11733
6/30/92 11176 11726 12179
9/30/92 11414 11976 12502
12/31/92 11673 12248 12729
3/31/93 12061 12654 13201
6/30/93 12448 13060 13633
9/30/93 12845 13477 14094
12/31/93 12971 13609 14291
3/31/94 12338 12945 13507
6/30/94 12448 13061 13657
9/30/94 12470 13084 13749
12/31/94 12306 12911 13551
3/31/95 13086 13730 14510
6/30/95 13311 13966 14859
9/30/95 13537 14203 15287
12/31/95 14024 14714 15917
3/31/96 13858 14540 15724
6/30/96 14000 14689 15846
9/30/96 14181 14878 16210
12/31/96 14499 15212 16623
3/31/97 14480 15192 16585
6/30/97 14866 15597 17157
9/30/97 15216 15964 17675
12/31/97 15590 16357 18154
3/31/98 15756 16531 18363
6/30/98 15987 16774 18642
9/30/98 16437 17245 19215
12/31/98 16493 17305 19330
3/31/99 16544 17358 19502
6/30/99 16336 17139 19157
9/30/99 15997 16785 19080
12/31/99 15625 16394 18931
3/31/00 16196 16993 19486
6/30/00 16397 17204 19780
9/30/00 16740 17564 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
-----------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------- ----- ----- ------ --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.59)% (0.27)% 3.34% 5.29% n/a n/a
Without Sales Charge 3.36 4.64 4.34 5.79 n/a n/a
CLASS C**
With Sales Charge and CDSC 0.89 1.87 n/a n/a (1.64)% n/a
Without Sales Charge and CDSC 2.91 3.86 n/a n/a (0.16) n/a
CLASS D**
With 1% CDSC 1.91 2.87 n/a n/a n/a n/a
Without CDSC 2.91 3.86 3.43 n/a n/a 2.73%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
--------- --------- --------- ------------- ---------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.02 $6.96 $7.10 CLASS A $0.345 $0.050 4.56%
CLASS C 7.02 6.96 7.09 CLASS C 0.283 0.050 3.87
CLASS D 7.02 6.96 7.09 CLASS D 0.283 0.050 3.88
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 85% Aaa/AAA 62%
General Obligation Bondsoo 15 Aa/AA 17
A/A 7
WEIGHTED AVERAGE MATURITY 21.6 years Baa/BBB 14
</TABLE>
---------------
See footnotes on page 16.
5
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
GEORGIA SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9523 10000 10000
12/31/90 9997 10498 10431
3/31/91 10180 10691 10667
6/30/91 10385 10905 10894
9/30/91 10789 11330 11318
12/31/91 11094 11651 11698
3/31/92 11087 11643 11733
6/30/92 11538 12117 12179
9/30/92 11829 12423 12502
12/31/92 12093 12699 12729
3/31/93 12443 13067 13201
6/30/93 12864 13509 13633
9/30/93 13481 14157 14094
12/31/93 13569 14249 14291
3/31/94 12643 13277 13507
6/30/94 12721 13358 13657
9/30/94 12737 13375 13749
12/31/94 12532 13161 13551
3/31/95 13498 14175 14510
6/30/95 13904 14601 14859
9/30/95 14222 14935 15287
12/31/95 14933 15682 15917
3/31/96 14626 15359 15724
6/30/96 14756 15496 15846
9/30/96 15155 15915 16210
12/31/96 15510 16288 16623
3/31/97 15381 16152 16585
6/30/97 15973 16774 17157
9/30/97 16466 17291 17675
12/31/97 16909 17757 18154
3/31/98 17100 17958 18363
6/30/98 17382 18254 18642
9/30/98 17855 18750 19215
12/31/98 17913 18811 19330
3/31/99 18023 18926 19502
6/30/99 17680 18566 19157
9/30/99 17385 18257 19080
12/31/99 17010 17863 18931
3/31/00 17721 18610 19486
6/30/00 17947 18847 19780
9/30/00 18419 19343 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------- ---- ----- ----- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.05)% 0.87% 4.29% 6.30% n/a n/a
Without Sales Charge 3.94 5.95 5.31 6.82 n/a n/a
CLASS C**
With Sales Charge and CDSC 1.41 3.10 n/a n/a (0.59)% n/a
Without Sales Charge and CDSC 3.49 5.15 n/a n/a 0.82 n/a
CLASS D**
With 1% CDSC 2.49 4.17 n/a n/a n/a n/a
Without CDSC 3.49 5.15 4.39 n/a n/a 3.61%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.64 $7.53 $7.75 CLASS A $0.370 $0.173 4.51%
CLASS C 7.66 7.55 7.76 CLASS C 0.303 0.173 3.82
CLASS D 7.66 7.55 7.76 CLASS D 0.303 0.173 3.86
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 81% Aaa/AAA 42%
General Obligation Bondsoo 19 Aa/AA 21
A/A 29
WEIGHTED AVERAGE MATURITY 22.7 years Baa/BBB 8
</TABLE>
-------------
See footnotes on page 16.
6
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
LOUISIANA SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9530 10000 10000
12/31/90 9993 10486 10431
3/31/91 10203 10707 10667
6/30/91 10415 10929 10894
9/30/91 10816 11349 11318
12/31/91 11131 11680 11698
3/31/92 11118 11666 11733
6/30/92 11575 12146 12179
9/30/92 11803 12386 12502
12/31/92 12003 12595 12729
3/31/93 12459 13074 13201
6/30/93 12836 13469 13633
9/30/93 13231 13884 14094
12/31/93 13377 14037 14291
3/31/94 12656 13281 13507
6/30/94 12710 13338 13657
9/30/94 12724 13352 13749
12/31/94 12589 13211 13551
3/31/95 13417 14079 14510
6/30/95 13681 14356 14859
9/30/95 14034 14726 15287
12/31/95 14742 15469 15917
3/31/96 14503 15218 15724
6/30/96 14549 15268 15846
9/30/96 14921 15657 16210
12/31/96 15256 16009 16623
3/31/97 15240 15992 16585
6/30/97 15746 16523 17157
9/30/97 16140 16936 17675
12/31/97 16546 17362 18154
3/31/98 16725 17551 18363
6/30/98 16931 17767 18642
9/30/98 17444 18305 19215
12/31/98 17527 18393 19330
3/31/99 17603 18471 19502
6/30/99 17299 18153 19157
9/30/99 17019 17858 19080
12/31/99 16717 17542 18931
3/31/00 17338 18194 19486
6/30/00 17541 18406 19780
9/30/00 17989 18877 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
-----------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------ ----- ----- ----- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.12)% 0.67% 4.06% 6.05% n/a n/a
Without Sales Charge 3.75 5.70 5.09 6.56 n/a n/a
CLASS C**
With Sales Charge and CDSC 1.23 2.83 n/a n/a (0.57)% n/a
Without Sales Charge and CDSC 3.28 4.88 n/a n/a 0.86 n/a
CLASS D**
With 1% CDSC 2.28 3.88 n/a n/a n/a n/a
Without CDSC 3.28 4.88 4.15 n/a n/a 3.42%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.80 $7.71 $7.81 CLASS A $0.391 $0.046 4.54%
CLASS C 7.80 7.71 7.80 CLASS C 0.321 0.046 3.86
CLASS D 7.80 7.71 7.80 CLASS D 0.321 0.046 3.90
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 84% Aaa/AAA 81%
General Obligation Bondsoo 16 Aa/AA 10
Baa/BBB 9
WEIGHTED AVERAGE MATURITY 19.9 years
</TABLE>
----------------
See footnotes on page 16.
7
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
MARYLAND SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ -------
9/30/90 9527 10000 10000
12/31/90 10012 10509 10431
3/31/91 10177 10682 10667
6/30/91 10362 10876 10894
9/30/91 10790 11326 11318
12/31/91 11060 11610 11698
3/31/92 11097 11648 11733
6/30/92 11498 12069 12179
9/30/92 11777 12362 12502
12/31/92 11972 12566 12729
3/31/93 12415 13032 13201
6/30/93 12843 13481 13633
9/30/93 13335 13998 14094
12/31/93 13400 14066 14291
3/31/94 12691 13321 13507
6/30/94 12769 13403 13657
9/30/94 12791 13426 13749
12/31/94 12666 13295 13551
3/31/95 13547 14220 14510
6/30/95 13848 14536 14859
9/30/95 14185 14889 15287
12/31/95 14799 15534 15917
3/31/96 14544 15266 15724
6/30/96 14714 15445 15846
9/30/96 15036 15782 16210
12/31/96 15341 16103 16623
3/31/97 15240 15997 16585
6/30/97 15730 16511 17157
9/30/97 16184 16988 17675
12/31/97 16582 17405 18154
3/31/98 16783 17616 18363
6/30/98 17009 17854 18642
9/30/98 17461 18328 19215
12/31/98 17552 18423 19330
3/31/99 17689 18568 19502
6/30/99 17448 18315 19157
9/30/99 17208 18063 19080
12/31/99 16966 17808 18931
3/31/00 17502 18371 19486
6/30/00 17705 18585 19780
9/30/00 18113 19012 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------ ---- ----- ----- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.41)% 0.24% 3.99% 6.12% n/a n/a
Without Sales Charge 3.52 5.26 5.01 6.64 n/a n/a
CLASS C**
With Sales Charge and CDSC 1.11 2.27 n/a n/a (0.42)% n/a
Without Sales Charge and CDSC 3.16 4.32 n/a n/a 1.01 n/a
CLASS D**
With 1% CDSC 2.16 3.32 n/a n/a n/a n/a
Without CDSC 3.16 4.32 4.07 n/a n/a 3.48%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.79 $7.72 $7.79 CLASS A $0.391 $0.004 4.52%
CLASS C 7.80 7.72 7.80 CLASS C 0.322 0.004 3.83
CLASS D 7.80 7.72 7.80 CLASS D 0.322 0.004 3.87
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 78% Aaa/AAA 38%
General Obligation Bondsoo 22 Aa/AA 42
A/A 18
WEIGHTED AVERAGE MATURITY 21.2 years Baa/BBB 2
</TABLE>
---------------
See footnotes on page 16.
8
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
MASSACHUSETTS SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9528 10000 10000
12/31/90 10043 10541 10431
3/31/91 10342 10855 10667
6/30/91 10583 11108 10894
9/30/91 11037 11584 11318
12/31/91 11345 11908 11698
3/31/92 11409 11975 11733
6/30/92 11840 12427 12179
9/30/92 12113 12713 12502
12/31/92 12375 12989 12729
3/31/93 12821 13456 13201
6/30/93 13284 13943 13633
9/30/93 13709 14389 14094
12/31/93 13801 14486 14291
3/31/94 13154 13806 13507
6/30/94 13262 13919 13657
9/30/94 13306 13966 13749
12/31/94 13190 13844 13551
3/31/95 14003 14697 14510
6/30/95 14264 14972 14859
9/30/95 14581 15304 15287
12/31/95 15194 15948 15917
3/31/96 14931 15672 15724
6/30/96 15091 15840 15846
9/30/96 15451 16217 16210
12/31/96 15823 16607 16623
3/31/97 15698 16477 16585
6/30/97 16231 17036 17157
9/30/97 16704 17532 17675
12/31/97 17196 18048 18154
3/31/98 17425 18289 18363
6/30/98 17695 18572 18642
9/30/98 18341 19250 19215
12/31/98 18321 19230 19330
3/31/99 18434 19348 19502
6/30/99 17954 18844 19157
9/30/99 17451 18316 19080
12/31/99 17088 17936 18931
3/31/00 17865 18751 19486
6/30/00 17998 18890 19780
9/30/00 18493 19410 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------ ---- ----- ----- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.36)% 0.97% 3.86% 6.34% n/a n/a
Without Sales Charge 3.49 5.97 4.87 6.86 n/a n/a
CLASS C**
With Sales Charge and CDSC 1.22 2.91 n/a n/a (1.62)% n/a
Without Sales Charge and CDSC 3.18 5.01 n/a n/a (0.20) n/a
CLASS D**
With 1% CDSC 2.18 4.01 n/a n/a n/a n/a
Without CDSC 3.18 5.01 3.95 n/a n/a 3.34%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.48 $7.40 $7.47 CLASS A $0.362 $0.055 4.68%
CLASS C 7.48 7.39 7.47 CLASS C 0.294 0.055 4.00
CLASS D 7.48 7.39 7.47 CLASS D 0.294 0.055 4.04
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 95% Aaa/AAA 59%
General Obligation Bonds 5 Aa/AA 25
A/A 11
WEIGHTED AVERAGE MATURITY 26.5 years Baa/BBB 5
</TABLE>
--------------
See footnotes on page 16.
9
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
MICHIGAN SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9529 10000 10000
12/31/90 9963 10455 10431
3/31/91 10169 10672 10667
6/30/91 10393 10907 10894
9/30/91 10800 11334 11318
12/31/91 11159 11710 11698
3/31/92 11180 11733 11733
6/30/92 11632 12207 12179
9/30/92 11939 12529 12502
12/31/92 12198 12801 12729
3/31/93 12612 13235 13201
6/30/93 13075 13721 13633
9/30/93 13488 14155 14094
12/31/93 13599 14271 14291
3/31/94 12969 13611 13507
6/30/94 13043 13688 13657
9/30/94 13097 13744 13749
12/31/94 12941 13581 13551
3/31/95 13792 14474 14510
6/30/95 14029 14723 14859
9/30/95 14348 15058 15287
12/31/95 14983 15724 15917
3/31/96 14741 15469 15724
6/30/96 14852 15586 15846
9/30/96 15232 15985 16210
12/31/96 15543 16311 16623
3/31/97 15483 16248 16585
6/30/97 16024 16817 17157
9/30/97 16475 17289 17675
12/31/97 16900 17735 18154
3/31/98 17100 17945 18363
6/30/98 17366 18224 18642
9/30/98 17896 18780 19215
12/31/98 17935 18821 19330
3/31/99 18057 18950 19502
6/30/99 17718 18593 19157
9/30/99 17400 18261 19080
12/31/99 17253 18106 18931
3/31/00 17947 18834 19486
6/30/00 18161 19059 19780
9/30/00 18553 19470 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------ ---- ----- ----- --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.52)% 1.57% 4.24% 6.38% n/a n/a
Without Sales Charge 3.38 6.62 5.27 6.89 n/a n/a
CLASS C**
With Sales Charge and CDSC 0.91 3.64 n/a n/a (0.07)% n/a
Without Sales Charge and CDSC 2.92 5.68 n/a n/a 1.43 n/a
CLASS D**
With 1% CDSC 1.92 4.68 n/a n/a n/a n/a
Without CDSC 2.92 5.68 4.31 n/a n/a 3.59%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ cAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $8.11 $8.05 $8.04 CLASS A $0.414 $0.032 4.65%
CLASS C 8.10 8.04 8.03 CLASS C 0.342 0.032 3.96
CLASS D 8.10 8.04 8.03 CLASS D 0.342 0.032 4.00
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 72% Aaa/AAA 60%
General Obligation Bondsoo 28 Aa/AA 30
A/A 10
WEIGHTED AVERAGE MATURITY 20.6 years
</TABLE>
----------
See footnotes on page 16.
10
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
MINNESOTA SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9529 10000 10000
12/31/90 9973 10466 10431
3/31/91 10103 10602 10667
6/30/91 10290 10798 10894
9/30/91 10587 11110 11318
12/31/91 10724 11254 11698
3/31/92 10838 11373 11733
6/30/92 11168 11719 12179
9/30/92 11403 11966 12502
12/31/92 11547 12117 12729
3/31/93 12022 12615 13201
6/30/93 12475 13092 13633
9/30/93 12892 13529 14094
12/31/93 13104 13752 14291
3/31/94 12681 13307 13507
6/30/94 12771 13402 13657
9/30/94 12907 13545 13749
12/31/94 12772 13403 13551
3/31/95 13410 14073 14510
6/30/95 13659 14334 14859
9/30/95 13889 14575 15287
12/31/95 14229 14931 15917
3/31/96 14059 14754 15724
6/30/96 14175 14875 15846
9/30/96 14443 15157 16210
12/31/96 14711 15437 16623
3/31/97 14707 15433 16585
6/30/97 15058 15802 17157
9/30/97 15432 16194 17675
12/31/97 15743 16521 18154
3/31/98 15893 16678 18363
6/30/98 16112 16908 18642
9/30/98 16617 17437 19215
12/31/98 16722 17548 19330
3/31/99 16827 17658 19502
6/30/99 16548 17365 19157
9/30/99 16270 17074 19080
12/31/99 16028 16819 18931
3/31/00 16551 17369 19486
6/30/00 16759 17587 19780
9/30/00 17140 17987 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------ ---- ----- ----- --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.34)% 0.31% 3.29% 5.54% n/a n/a
Without Sales Charge 3.56 5.35 4.30 6.05 n/a n/a
CLASS C**
With Sales Charge and CDSC 1.13 2.45 n/a n/a (0.88)% n/a
Without Sales Charge and CDSC 3.11 4.42 n/a n/a 0.59 n/a
CLASS D**
With 1% CDSC 2.11 3.42 n/a n/a n/a n/a
Without CDSC 3.11 4.42 3.36 n/a n/a 2.99%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.34 $7.26 $7.36 CLASS A $0.357 $0.041 4.59%
CLASS C 7.34 7.26 7.36 CLASS C 0.292 0.041 3.91
CLASS D 7.34 7.26 7.36 CLASS D 0.292 0.041 3.95
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 58% Aaa/AAA 48%
General Obligation Bondsoo 42 Aa/AA 34
A/A 11
WEIGHTED AVERAGE MATURITY 21.5 years Baa/BBB 5
Non-Rated 2
</TABLE>
---------------
See footnotes on page 16.
11
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
MISSOURI SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9525 10000 10000
12/31/90 9981 10479 10431
3/31/91 10174 10682 10667
6/30/91 10412 10931 10894
9/30/91 10822 11361 11318
12/31/91 11115 11670 11698
3/31/92 11118 11672 11733
6/30/92 11532 12107 12179
9/30/92 11673 12256 12502
12/31/92 11921 12516 12729
3/31/93 12327 12942 13201
6/30/93 12756 13392 13633
9/30/93 13211 13870 14094
12/31/93 13281 13943 14291
3/31/94 12470 13092 13507
6/30/94 12541 13166 13657
9/30/94 12571 13197 13749
12/31/94 12442 13062 13551
3/31/95 13351 14017 14510
6/30/95 13595 14273 14859
9/30/95 13912 14606 15287
12/31/95 14551 15276 15917
3/31/96 14265 14976 15724
6/30/96 14430 15150 15846
9/30/96 14784 15521 16210
12/31/96 15091 15843 16623
3/31/97 14977 15724 16585
6/30/97 15467 16238 17157
9/30/97 15922 16716 17675
12/31/97 16310 17123 18154
3/31/98 16454 17274 18363
6/30/98 16751 17587 18642
9/30/98 17262 18123 19215
12/31/98 17251 18111 19330
3/31/99 17327 18191 19502
6/30/99 17007 17855 19157
9/30/99 16643 17473 19080
12/31/99 16286 17098 18931
3/31/00 17025 17874 19486
6/30/00 17260 18121 19780
9/30/00 17674 18555 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------ ---- ----- ----- --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.09)% 1.20% 3.90% 5.86% n/a n/a
Without Sales Charge 3.81 6.19 4.90 6.38 n/a n/a
CLASS C**
With Sales Charge and CDSC 1.40 3.28 n/a n/a (0.65)% n/a
Without Sales Charge and CDSC 3.37 5.27 n/a n/a 0.82 n/a
CLASS D**
With 1% CDSC 2.37 4.27 n/a n/a n/a n/a
Without CDSC 3.37 5.27 3.97 n/a n/a 3.21%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.37 $7.27 $7.29 CLASS A $0.348 $0.008 4.46%
CLASS C 7.37 7.27 7.29 CLASS C 0.284 0.008 3.79
CLASS D 7.37 7.27 7.29 CLASS D 0.284 0.008 3.81
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 81% Aaa/AAA 51%
General Obligation Bondsoo 19 Aa/AA 36
A/A 10
WEIGHTED AVERAGE MATURITY 22.3 years Baa/BBB 3
</TABLE>
---------------
See footnotes on page 16.
12
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
NEW YORK SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9524 10000 10000
12/31/90 9895 10390 10431
3/31/91 10125 10631 10667
6/30/91 10387 10906 10894
9/30/91 10910 11456 11318
12/31/91 11233 11795 11698
3/31/92 11249 11812 11733
6/30/92 11770 12358 12179
9/30/92 11980 12579 12502
12/31/92 12279 12893 12729
3/31/93 12848 13490 13201
6/30/93 13332 13998 13633
9/30/93 13807 14497 14094
12/31/93 13907 14603 14291
3/31/94 12988 13637 13507
6/30/94 13076 13729 13657
9/30/94 13066 13719 13749
12/31/94 12805 13445 13551
3/31/95 13845 14537 14510
6/30/95 14142 14849 14859
9/30/95 14494 15219 15287
12/31/95 15277 16041 15917
3/31/96 14981 15730 15724
6/30/96 15107 15862 15846
9/30/96 15504 16279 16210
12/31/96 15862 16655 16623
3/31/97 15742 16529 16585
6/30/97 16314 17129 17157
9/30/97 16970 17818 17675
12/31/97 17455 18328 18154
3/31/98 17684 18568 18363
6/30/98 17983 18882 18642
9/30/98 18669 19602 19215
12/31/98 18653 19585 19330
3/31/99 18747 19684 19502
6/30/99 18300 19215 19157
9/30/99 17949 18846 19080
12/31/99 17601 18481 18931
3/31/00 18311 19226 19486
6/30/00 18622 19553 19780
9/30/00 19075 20029 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------ ---- ----- ----- --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (0.75)% 1.28% 4.63% 6.67% n/a n/a
Without Sales Charge 4.18 6.28 5.65 7.19 n/a n/a
CLASS C**
With Sales Charge and CDSC 1.64 3.39 n/a n/a (0.68)% n/a
Without Sales Charge and CDSC 3.70 5.46 n/a n/a 0.75 n/a
CLASS D**
With 1% CDSC 2.70 4.46 n/a n/a n/a n/a
Without CDSC 3.70 5.46 4.69 n/a n/a 3.71%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.77 $7.65 $7.70 CLASS A $0.393 $0.005 4.86%
CLASS C 7.78 7.66 7.70 CLASS C 0.324 0.005 4.18
CLASS D 7.78 7.66 7.70 CLASS D 0.324 0.005 4.21
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 91% Aaa/AAA 50%
General Obligation Bondsoo 9 Aa/AA 7
A/A 32
WEIGHTED AVERAGE MATURITY 25.1 years Baa/BBB 11
</TABLE>
-----------------
See footnotes on page 16.
13
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
OHIO SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9525 10000 10000
12/31/90 9952 10448 10431
3/31/91 10137 10643 10667
6/30/91 10354 10870 10894
9/30/91 10759 11296 11318
12/31/91 11078 11630 11698
3/31/92 11108 11662 11733
6/30/92 11545 12120 12179
9/30/92 11800 12389 12502
12/31/92 12012 12611 12729
3/31/93 12441 13061 13201
6/30/93 12881 13524 13633
9/30/93 13312 13976 14094
12/31/93 13410 14078 14291
3/31/94 12754 13390 13507
6/30/94 12887 13530 13657
9/30/94 12902 13545 13749
12/31/94 12752 13387 13551
3/31/95 13576 14253 14510
6/30/95 13847 14538 14859
9/30/95 14139 14844 15287
12/31/95 14694 15426 15917
3/31/96 14457 15178 15724
6/30/96 14616 15345 15846
9/30/96 14942 15687 16210
12/31/96 15248 16009 16623
3/31/97 15179 15936 16585
6/30/97 15631 16411 17157
9/30/97 16068 16870 17675
12/31/97 16528 17352 18154
3/31/98 16668 17499 18363
6/30/98 16917 17760 18642
9/30/98 17478 18350 19215
12/31/98 17500 18373 19330
3/31/99 17619 18497 19502
6/30/99 17323 18187 19157
9/30/99 17010 17858 19080
12/31/99 16686 17519 18931
3/31/00 17320 18183 19486
6/30/00 17569 18446 19780
9/30/00 17959 18854 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
Investment Results Per Share
Total Returns
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------ ---- ----- ----- --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.27)% 0.58% 3.89% 6.03% n/a n/a
Without Sales Charge 3.69 5.58 4.90 6.55 n/a n/a
CLASS C**
With Sales Charge and CDSC 1.16 2.71 n/a n/a (0.62)% n/a
Without Sales Charge and CDSC 3.22 4.78 n/a n/a 0.81 n/a
CLASS D**
With 1% CDSC 2.22 3.78 n/a n/a n/a n/a
Without CDSC 3.22 4.78 3.99 n/a n/a 3.41%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.64 $7.56 $7.64 CLASS A $0.392 $0.019 4.74%
CLASS C 7.69 7.61 7.68 CLASS C 0.326 0.019 4.05
CLASS D 7.69 7.61 7.68 CLASS D 0.326 0.019 4.19
HOLDINGS BY MARKET SECTORo MoODY'S/S&P RATINGSo
Revenue Bonds 69% Aaa/AAA 79%
General Obligation Bondsoo 31 Aa/AA 6
A/A 8
Baa/BBB 7
WEIGHTED AVERAGE MATURITY 21.6 years
</TABLE>
----------------
See footnotes on page 16.
14
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
OREGON SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9521 10000 10000
12/31/90 9988 10491 10431
3/31/91 10195 10708 10667
6/30/91 10409 10933 10894
9/30/91 10783 11326 11318
12/31/91 11069 11626 11698
3/31/92 11104 11663 11733
6/30/92 11446 12021 12179
9/30/92 11684 12271 12502
12/31/92 11930 12530 12729
3/31/93 12295 12913 13201
6/30/93 12699 13338 13633
9/30/93 13110 13770 14094
12/31/93 13231 13896 14291
3/31/94 12638 13274 13507
6/30/94 12748 13389 13657
9/30/94 12799 13442 13749
12/31/94 12627 13262 13551
3/31/95 13403 14077 14510
6/30/95 13669 14357 14859
9/30/95 13957 14659 15287
12/31/95 14463 15191 15917
3/31/96 14239 14955 15724
6/30/96 14390 15114 15846
9/30/96 14693 15432 16210
12/31/96 15014 15769 16623
3/31/97 14978 15732 16585
6/30/97 15445 16222 17157
9/30/97 15956 16758 17675
12/31/97 16372 17196 18154
3/31/98 16561 17394 18363
6/30/98 16819 17665 18642
9/30/98 17309 18180 19215
12/31/98 17370 18243 19330
3/31/99 17514 18394 19502
6/30/99 17202 18067 19157
9/30/99 16935 17787 19080
12/31/99 16684 17523 18931
3/31/00 17240 18107 19486
6/30/00 17499 18379 19780
9/30/00 17875 18773 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------ ---- ----- ----- --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.27)% 0.57% 4.06% 5.98% n/a n/a
Without Sales Charge 3.68 5.55 5.07 6.50 n/a n/a
CLASS C**
With Sales Charge and CDSC 1.27 2.52 n/a n/a (0.62)% n/a
Without Sales Charge and CDSC 3.23 4.62 n/a n/a 0.84 n/a
CLASS D**
With 1% CDSC 2.23 3.62 n/a n/a n/a n/a
Without CDSC 3.23 4.62 4.16 n/a n/a 3.52%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.47 $7.38 $7.48 CLASS A $0.357 $0.052 4.37%
CLASS C 7.47 7.38 7.48 CLASS C 0.291 0.052 3.67
CLASS D 7.47 7.38 7.48 Class D 0.291 0.052 3.71
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 70% Aaa/AAA 44%
General Obligation Bondsoo 30 Aa/AA 35
A/A 14
WEIGHTED AVERAGE MATURITY 18.3 years Baa/BBB 7
</TABLE>
-------------------
See footnotes on page 16.
15
<PAGE>
PERFORMANCE OVERVIEW AND PORTFOLIO SUMMARY
SOUTH CAROLINA SERIES
[Table below represents line graph in its printed piece]
With Load Without Load Lehman
--------- ------------ ------
9/30/90 9526 10000 10000
12/31/90 10060 10561 10431
3/31/91 10256 10766 10667
6/30/91 10471 10993 10894
9/30/91 10854 11395 11318
12/31/91 11219 11777 11698
3/31/92 11269 11830 11733
6/30/92 11697 12280 12179
9/30/92 11948 12543 12502
12/31/92 12160 12766 12729
3/31/93 12566 13192 13201
6/30/93 12994 13642 13633
9/30/93 13444 14114 14094
12/31/93 13584 14260 14291
3/31/94 12745 13379 13507
6/30/94 12821 13459 13657
9/30/94 12824 13462 13749
12/31/94 12673 13304 13551
3/31/95 13589 14266 14510
6/30/95 13872 14563 14859
9/30/95 14194 14901 15287
12/31/95 14911 15653 15917
3/31/96 14625 15353 15724
6/30/96 14782 15518 15846
9/30/96 15163 15918 16210
12/31/96 15497 16268 16623
3/31/97 15379 16145 16585
6/30/97 15915 16707 17157
9/30/97 16374 17189 17675
12/31/97 16847 17686 18154
3/31/98 17023 17870 18363
6/30/98 17270 18130 18642
9/30/98 17791 18677 19215
12/31/98 17812 18699 19330
3/31/99 17902 18794 19502
6/30/99 17538 18411 19157
9/30/99 17200 18057 19080
12/31/99 16816 17653 18931
3/31/00 17592 18468 19486
6/30/00 17791 18677 19780
9/30/00 18244 19152 20259
The performances of Class C and Class D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------------------
CLASS C CLASS D
SIX ONE FIVE 10 SINCE INCEPTION SINCE INCEPTION
MONTHS* YEAR YEARS YEARS 5/27/99 2/1/94
------ ---- ----- ----- --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (1.25)% 1.06% 4.12% 6.20% n/a n/a
Without Sales Charge 3.70 6.07 5.15 6.71 n/a n/a
CLASS C**
With Sales Charge and CDSC 1.17 3.04 n/a n/a (0.76)% n/a
Without Sales Charge and CDSC 3.24 5.12 n/a n/a 0.67 n/a
CLASS D**
With 1% CDSC 2.24 4.12 n/a n/a n/a n/a
Without CDSC 3.24 5.12 4.18 n/a n/a 3.39%
LEHMAN INDEX*** 3.97 6.18 5.79 7.32 3.16+++ 5.20++++
<CAPTION>
NET ASSET VALUE DIVIDEND, CAPITAL GAIN, AND YIELD INFORMATION
FOR PERIODS ENDED SEPTEMBER 30, 2000
9/30/00 3/31/00 9/30/99 DIVIDENDS+ CAPITAL GAIN+ SEC YIELD++
------- ------- ------- --------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A $7.66 $7.57 $7.67 CLASS A $0.378 $0.076 4.60%
CLASS C 7.65 7.56 7.66 CLASS C 0.309 0.076 3.92
CLASS D 7.65 7.56 7.66 CLASS D 0.309 0.076 3.96
HOLDINGS BY MARKET SECTORo MOODY'S/S&P RATINGSo
Revenue Bonds 100% Aaa/AAA 61%
General Obligation Bonds -- Aa/AA 11
A/A 20
WEIGHTED AVERAGE MATURITY 21.8 years Baa/BBB 8
</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 Index is an unmanaged index that does not include any fees or
sales charges. It is composed of approximately 60% revenue bonds and 40%
state government obligations. Investors cannot invest directly in an index.
+++ From 5/31/99.
++++ From 1/31/94.
+ Represents per share amount paid or declared for the year ended September
30, 2000.
++ Current yield, representing the annualized yield for the 30-day period
ended September 30, 2000, has been computed in accordance with SEC
regulations and will vary.
o Percentages based on current market values of long-term holdings at
September 30, 2000.
oo Includes pre-refunded and escrowed-to-maturity securities.
16
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
NATIONAL SERIES
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
----- ------ --------------- ----------- -----------
<S> <C> <C> <C> <C>
ALABAMA--3.8% $4,000,000 Jefferson County Sewer Rev., 5 1/8% due 2/1/2039 ........... Aaa/AAA $ 3,536,800
ALASKA--1.6% 1,500,000 Alaska Housing Finance Corporation Mortgage Rev.,
5 3/4% due 6/1/2024* .................................... Aaa/AAA 1,469,475
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 1,610,715
FLORIDA--3.9% 4,000,000 Jacksonville Electric Authority (Electric System Rev.),
5.10% due 10/1/2032 ..................................... Aa2/AA 3,610,200
KENTUCKY--2.1% 1,880,000 Trimble County Pollution Control Rev. (Louisville
Gas & Electric Co. Project), 7 5/8% due 11/1/2020* ...... A1/A 1,922,600
MICHIGAN--2.5% 2,250,000 Michigan State Strategic Fund Pollution Control Rev.
(General Motors Corp.), 6.20% due 9/1/2020 .............. A2/A 2,295,697
MISSOURI--5.1% 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+ 4,746,533
NEVADA--4.8% 5,000,000 Clark County Industrial Development Rev. (Nevada
Power Company Project), 5.90% due 11/1/2032* ............ NR/BBB 4,438,900
NEW YORK--7.8% 3,500,000 New York City GOs, 6 1/4% due 4/15/2027 .................... A2/A 3,625,300
2,500,000 New York State Mortgage Agency Rev.
(Homeowner Mortgage), 6.35% due 10/1/2030* .............. Aa1/NR 2,600,375
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 992,930
OHIO--4.1% 4,000,000 Ohio Housing Finance Agency Mortgage Rev. (Residential
Mortgage), 5.40% due 9/1/2029* .......................... Aaa/NR 3,765,000
SOUTH 6,000,000 South Dakota Housing Development Authority Rev.
DAKOTA--6.5% (Homeownership Mortgage), 6.15% due 5/l/2026* ........... Aa1/AAA 6,018,600
TENNESSEE--5.0% 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 4,630,350
TEXAS--17.8% 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 3,804,599
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 2,077,760
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 4,828,233
125,000 San Antonio Electric & Gas Rev., 5 1/2% due 2/1/2020 ....... Aa1/AA 130,930
2,375,000 San Antonio Electric & Gas Rev., 5 1/2% due 2/1/2020o ...... Aa1/AA 2,322,299
</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.
See Notes to Financial Statements.
17
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 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) $1,975,000 Texas Veterans Housing Assistance GOs, 6.80%
due 12/1/2023 ................................ Aa1/AA $ 2,048,588
1,225,000 Travis County Housing Finance Corporation (Single
Family Mortgage Rev.), 6.95% due 10/1/2027 ... NR/AAA 1,261,701
VIRGINIA-- 9.9% 5,000,000 Fairfax County Industrial Development Authority
Health Care Rev. (Inova Health System Project),
6% due 8/15/2026 ............................. Aa2/AA 5,046,400
5,000,000 Pocahontas Parkway Association Toll Road Bonds
(Route 895 Connector), 5 1/2% due 8/15/2028 .. Baa3/BBB- 4,132,850
WASHINGTON-- 10.7% 4,325,000 King County Sewer GOs, 6 1/8% due 1/1/2033 ...... Aaa/AAA 4,422,183
5,520,000 Seattle Water System Rev., 5 5/8% due 8/1/2026 .. Aaa/AAA 5,427,264
WISCONSIN-- 6.6% 6,000,000 LaCrosse Resource Recovery Rev. (Northern States
Power Company Project), 6% due 11/1/2021* ... A1/A- 6,064,260
WYOMING-- 4.4% 4,000,000 Sweetwater County Pollution Control Rev. (Idaho
Power Company Project), 6.05% due 7/15/2026 . A3/A 4,030,160
-----------
TOTAL MUNICIPAL BONDS (Cost $92,239,375)-- 98.3% ...................................................... 90,860,702
VARIABLE RATE DEMAND NOTES (Cost $200,000)-- 0.2% ..................................................... 200,000
OTHER ASSETS LESS LIABILITIES-- 1.5% .................................................................. 1,417,106
-----------
NET ASSETS-- 100.0% ................................................................................... $92,477,808
===========
</TABLE>
COLORADO SERIES
<TABLE>
<CAPTION>
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 $2,036,340
1,000,000 Boulder, Larimer and Weld Counties, CO (Vrain Valley School
District), 5% due 12/15/2022 ................................ Aaa/AAA 911,180
1,640,000 Colorado Health Facilities Authority Hospital Improvement Rev.,
(NCMC, Inc. Project), 5 3/4% due 5/15/2024 .................. Aaa/AAA 1,639,869
2,250,000 Colorado Health Facilities Authority Rev. (Sisters of Charity
of Leavenworth Health Services Corporation),
5% due 12/1/2025............................................ Aaa/AAA 1,996,763
2,000,000 Colorado Health Facilities Authority Rev. (Catholic Health
Initiatives), 5% due 12/1/2028 .............................. Aa3/AA- 1,693,960
2,000,000 Colorado Springs, CO Utilities Rev., 5 3/8%
due 11/15/2026............................................... Aa2/AA 1,886,200
105,000 Colorado Water Resources & Power Development Authority
(Clean Water Rev.), 6 7/8% due 9/1/2011 ..................... Aaa/AAA 108,073
2,000,000 Colorado Water Resources & Power Development Authority
(Clean Water Rev.), 6% due 9/1/2014 ......................... Aaa/AAA 2,048,780
2,000,000 Denver, CO City & County Certificates of Participation, 5 1/2%
due 12/1/2025 ............................................... Aaa/AAA 1,949,300
2,000,000 Denver, CO City & County Department of Aviation Airport System
Rev., 5 1/2% due 11/15/2025 ................................. Aaa/AAA 1,938,980
</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.
See Notes to Financial Statements.
18
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
COLORADO SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- ---------------------- ----------- --------
<S> <C> <C> <C>
$2,200,000 Denver, CO City & County School District GOs, 5% due 12/1/2023 .............. Aaa/AAA $ 1,984,818
2,000,000 Denver, CO Health and Hospital Authority Healthcare Rev.,
5 3/8% due 12/1/2028 ..................................................... Baa2/BBB 1,575,900
2,500,000 Fort Collins, COPollution Control Rev. (Anheuser-Busch Project),
6% due 9/1/2031 .......................................................... A1/A+ 2,519,975
1,000,000 Fountain Valley Authority, CO Water Treatment Rev., 6.80% due 12/1/2019o .... Aa2/AA 1,015,820
2,250,000 Jefferson County, CO Open Space Sales Tax Rev., 5% due 11/1/2019o ........... Aaa/AAA 2,082,870
1,755,000 Northglenn, CO GOs Joint Water & Wastewater Utility, 6.80% due 12/1/2008++ .. Aaa/NR 1,877,218
2,000,000 Platte River Power Authority, CO Power Rev., 6 1/8% due 6/1/2014 ............ Aa3/AA- 2,074,580
970,000 Pueblo County, CO Single Family Mortgage Rev., 7.05% due 11/1/2027 .......... NR/AAA 1,003,281
2,000,000 Puerto Rico Highway & Transportation Authority Rev., 51/2% due 7/1/2036 ..... Baa1/A 1,965,420
2,000,000 University of Colorado Hospital Authority Rev., 5 1/4% due 11/15/2022 ....... Aaa/NR 1,870,800
2,000,000 Virgin Islands Public Finance Authority Rev., 5 1/2% due 10/1/2022 .......... NR/BBB- 1,862,560
2,000,000 Westminster, CO (Adams & Jefferson Counties) Sales & Use Tax Rev.,
7% due 12/1/2008 ......................................................... Aaa/AAA 2,027,820
-----------
TOTAL MUNICIPAL BONDS (Cost $38,923,462)-- 100.3% ................................................... 38,070,507
OTHER ASSETS LESS LIABILITIES-- (0.3)% .............................................................. (130,549)
-----------
NET ASSETS-- 100.0% ................................................................................. $37,939,958
===========
</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 $ 1,948,040
2,500,000 Atlanta, GA Water & Wastewater Rev., 5% due 11/1/2038 ....................... Aaa/AAA 2,187,250
1,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater
Facilities (Anheuser-Busch), 7.40% due 11/1/2010* ........................ A1/A+ 1,169,750
2,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater
Facilities (Anheuser-Busch), 6 3/4% due 2/1/2012* ........................ A1/A+ 2,088,880
2,000,000 Chatham County, GA School District GOs, 51/2% due 8/1/2020 .................. Aaa/AAA 1,978,420
1,000,000 DeKalb County, GA GOs, 5 1/4% due 1/1/2020 .................................. Aa1/AA+ 956,720
2,000,000 DeKalb County, GA Water & Sewerage Rev., 5% due 10/1/2028 ................... Aa2/AA 1,795,760
1,820,000 Fulton County, GA Development Authority Special Facilities Rev.,
(Delta Airlines, Inc. Project), 5 1/2% due 5/1/2033* ..................... Baa3/BBB- 1,563,835
2,250,000 Georgia Housing & Finance Authority (Single Family Mortgage),
5.20% due 6/1/2029* ...................................................... NR/AAA 2,009,385
1,990,000 Georgia Housing & Finance Authority (Single Family Mortgage),
6.10% due 6/1/2031* ...................................................... Aa2/AAA 2,010,039
2,500,000 Georgia Municipal Gas Authority Rev. (Southern Storage Gas
Project), 6.40% due 7/1/2014 ............................................. NR/A- 2,521,800
</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.
See Notes to Financial Statements.
19
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
GEORGIA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- ---------------------- ----------- --------
<S> <C> <C> <C>
$1,000,000 Gwinnett County, GA School District GOs, 6.40% due 2/1/2012 ................. Aa1/AA+ $ 1,121,260
2,000,000 Gwinnett County, GA Water & Sewerage Authority Rev., 5.30% due 8/1/2022 ..... Aaa/AAA 1,929,660
1,500,000 Henry County School District, GA GOs, 6.45% due 8/1/2011 .................... Aa3/A+ 1,662,465
500,000 Metropolitan Atlanta Rapid Transit Authority, GA Sales Tax Rev.,
6 1/4% due 7/1/2018 ...................................................... A1/AA- 546,545
2,000,000 Monroe County, GA Development Authority Pollution Control Rev.
(Georgia Power Company Plant - Scherer Project), 6% due 7/1/2025 ......... Aaa/AAA 2,011,000
2,500,000 Peachtree City, GA Water & Sewerage Authority Sewer System Rev.,
5.60% due 3/1/2027 ....................................................... Aa3/AA 2,478,750
1,500,000 Private Colleges & Universities Authority Rev., GA (Spelman
College Project), 6.20% due 6/1/2014 ..................................... Aaa/AAA 1,592,400
1,500,000 Private Colleges & Universities Authority Rev., GA (Mercer
University Project), 6 1/2% due 11/1/2015++ .............................. Aaa/AAA 1,673,325
2,500,000 Private Colleges & Universities Authority Rev., GA (Agnes Scott
College Project), 5 5/8% due 6/1/2023 .................................... A1/AA 2,495,025
1,000,000 Private Colleges & Universities Authority Rev., GA (Mercer
University Project), 5 3/8% due 10/1/2029 ................................ A3/NR 922,290
1,500,000 Puerto Rico Highway & Transportation Authority Rev., 5 1/2% due 7/1/2026 .... Baal/A 1,471,515
1,000,000 Savannah, GA Airport Rev., 6 1/4% due 1/1/2015* ............................. Aaa/AAA 1,022,570
-----------
TOTAL MUNICIPAL BONDS (Cost $39,123,449)-- 98.4% .................................................... 39,156,684
OTHER ASSETS LESS LIABILITIES-- 1.6% ................................................................ 640,818
-----------
NET ASSETS-- 100.0% ................................................................................. $39,797,502
===========
LOUISIANA SERIES
<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 ................ Baa1/BBB+ $ 3,114,150
2,500,000 Calcasieu Parish, LA Industrial Development Board (Conoco Inc. Project),
53/4% due 12/1/2026* ..................................................... Aa3/AA- 2,437,075
1,505,000 East Baton Rouge Parish, LA Mortgage Finance Authority (Single Family
Mortgage Rev.), 5.40% due 10/1/2025 ...................................... Aaa/NR 1,419,998
2,000,000 East Baton Rouge Parish, LA Public Improvement Sales & Use Tax Rev.,
5.90% due 2/1/2018 ....................................................... Aaa/AAA 2,050,920
2,000,000 Jefferson Parish, LA Home Mortgage Authority (Single Family Mortgage Rev.),
6% due 12/1/2024* ........................................................ Aa/NR 1,964,760
2,000,000 Jefferson Parish, LA Hospital Service District Rev., 5% due 7/1/2028 ........ Aaa/AAA 1,761,660
2,500,000 Lafayette, LA Public Improvement Sales Tax, 5% due 5/1/2021 ................. Aaa/AAA 2,264,075
2,495,000 Louisiana Housing Finance Agency Mortgage Rev. (Single Family),
6.45% due 6/1/2027* ...................................................... Aaa/AAA 2,612,839
</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.
See Notes to Financial Statements.
20
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
LOUISIANA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------ --------------- ----------- -----------
<S> <C> <C> <C>
$2,500,000 Louisiana Public Facilities Authority Hospital Rev. (Franciscan Missionaries
of Our Lady Health System Project), 5% due 7/1/2025 ............................ Aaa/AAA $ 2,220,700
2,500,000 Louisiana Public Facilities Authority Rev. (Loyola University Project),
5 5/8% due 10/1/2016 ........................................................... Aaa/AAA 2,521,950
2,500,000 Louisiana Public Facilities Authority Rev. (Tulane University),
5 3/4% due 2/15/2021 ........................................................... Aaa/AAA 2,508,425
1,500,000 Louisiana State GOs, 5% due 4/15/2018 ............................................. Aaa/AAA 1,384,470
2,500,000 Ouachita Parish, LA Hospital Service District Rev. (Glenwood Regional
Medical Center), 5 3/4% due 5/15/2021 .......................................... Aaa/AAA 2,507,125
180,000 Ouachita Parish, LA Industrial Development Rev. (International Paper Company),
6 1/2% due 4/1/2006 ............................................................ NR/NR 180,149
2,500,000 Saint Bernard Parish, LA Exempt Facility Rev. (Mobil Oil Corporation Project),
5.90% due 11/1/2026* ........................................................... Aaa/AAA 2,503,350
1,250,000 Saint Charles Parish, LA Environmental Improvement Rev. (Louisiana Power
and Light Company Project), 6.20% due 5/1/2023* ................................ Baa2/BBB 1,181,838
2,960,000 Saint Charles Parish, LA Waterworks & Wastewater District Utility Rev.,
7.15% due 7/1/2016 ............................................................. Aaa/AAA 3,071,414
2,500,000 Shreveport, LA Airport System Rev., 5 3/8% due 1/1/2024* .......................... Aaa/AAA 2,346,850
1,555,000 Shreveport, LA GOs, 7 1/2% due 4/1/2006++ ......................................... Aaa/AAA 1,751,225
2,500,000 Shreveport, LA GOs, 5% due 3/1/2019 ............................................... Aaa/AAA 2,299,200
2,050,000 Sulphur, LA Housing & Mortgage Finance Trust (Residential Mortgage Rev.),
7 1/4% due 12/1/2010++ ......................................................... Aaa/AAA 2,287,677
2,500,000 Tangipahoa Parish, LA Hospital Service District No. 1 Rev. (Northoaks
Medical Center), 6 1/4% due 2/1/2024 ........................................... Aaa/AAA 2,569,225
TOTAL MUNICIPAL BONDS (Cost $46,875,272)-- 97.0% ........................................................... 46,959,075
VARIABLE RATE DEMAND NOTES (Cost $600,000)-- 1.3% .......................................................... 600,000
OTHER ASSETS LESS LIABILITIES-- 1.7% ....................................................................... 841,369
-----------
NET ASSETS-- 100.0% ........................................................................................ $48,400,444
===========
</TABLE>
MARYLAND SERIES
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------ --------------- ----------- -----------
<S> <C> <C> <C>
$1,000,000 Anne Arundel County, MD GOs, 5 1/8% due 2/1/2026 .................................. Aa2/AA+ $ 934,880
1,340,000 Anne Arundel County, MD GOs, 5 1/8% due 2/1/2027 .................................. Aa2/AA+ 1,251,024
3,000,000 Anne Arundel County, MD Pollution Control Rev. (Baltimore Gas and Electric
Company Project), 6% due 4/1/2024 .............................................. A2/A 3,025,110
2,000,000 Baltimore, MD Consolidated Public Improvement GOs, 6 3/8% due 10/15/2006 .......... Aaa/AAA 2,178,820
2,500,000 Baltimore, MD Port Facilities Rev. (Consolidated Coal Sales Co. Project),
6 1/2% due 10/1/2011 ........................................................... Aa3/AA- 2,629,350
</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.
See Notes to Financial Statements.
21
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
MARYLAND SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------------ --------------- ------------ ----------
<S> <C> <C> <C>
$2,000,000 Baltimore, MD Project and Refunding Rev. (Water Projects), 5 1/2% due 7/1/2026 ....... Aaa/AAA $ 1,967,360
1,000,000 Howard County, MD Metropolitan District Project GOs, 5 1/2% due 8/15/2022 ............ Aaa/AAA 1,000,780
2,000,000 Maryland Community Development Administration Dept. of Housing &
Community Development (Multi-Family Housing), 7.70% due 5/15/2020* ................ Aa/NR 2,058,340
2,380,000 Maryland Community Development Administration Dept. of Housing &
Community Development (Single Family Program), 6.80% due 4/1/2024* ................ Aa2/NR 2,440,999
2,500,000 Maryland Community Development Administration Dept. of Housing &
Community Development (Multi-Family Housing), 6.70% due 5/15/2027 ................. Aa/NR 2,583,975
2,250,000 Maryland Community Development Administration Dept. of Housing &
Community Development (Residential Rev.), 6.15% due 9/1/2032* ..................... Aa2/NR 2,268,743
2,570,000 Maryland Department of Transportation Project Certificates
of Participation (Mass Transit Administration Project), 5 1/2% due 10/15/2025* .... Aa3/AA 2,495,136
2,710,000 Maryland Health & Higher Educational Facilities Authority Rev. (Good Samaritan
Hospital), 5 3/4% due 7/1/2019++ .................................................. Aaa/AAA 2,741,138
2,000,000 Maryland Health & Higher Educational Facilities Authority Rev.
(Suburban Hospital), 5 1/8% due 7/1/2021 .......................................... A1/A+ 1,776,280
2,000,000 Maryland Health & Higher Educational Facilities Authority Rev.
(Anne Arundel Medical Center), 5% due 7/1/2023 .................................... Aaa/AAA 1,827,320
2,500,000 Maryland Health & Higher Educational Facilities Authority Rev. (Francis Scott Key
Medical Center), 5% due 7/1/2023 .................................................. Aaa/AAA 2,284,150
2,000,000 Maryland Health & Higher Educational Facilities Authority Rev.
(Mercy Medical Center), 5 3/4% due 7/1/2026 ....................................... Aaa/AAA 2,008,480
1,500,000 Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel
Medical Center), 5 1/8% due 7/1/2028 .............................................. Aaa/AAA 1,382,700
1,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Charity
Obligated Group), 5% due 11/1/2029 ................................................ Aa2/AA 895,880
2,000,000 Maryland Transportation Authority Rev. (Baltimore/Washington International
Airport Project), 6 1/4% due 7/1/2014* ............................................ Aaa/AAA 2,094,000
2,000,000 Maryland Transportation Authority Rev. Transportation Facilities Projects,
5 3/4% due 7/1/2015 ............................................................... A1/A+ 2,017,380
1,000,000 Maryland Water Quality Financing Administration Revolving Loan Fund Rev.,
7.10% due 9/1/2013o ............................................................... Aaa/AAA 1,043,680
110,000 Montgomery County, MD Housing Opportunities Commission (Single Family
Mortgage Rev.), 7 3/8% due 7/1/2017 ............................................... Aa2/NR 111,176
1,390,000 Montgomery County, MD Housing Opportunities Commission Rev.,
6.20% due 7/1/2026* ............................................................... Aa2/NR 1,398,326
2,000,000 Northeast Maryland Waste Disposal Authority Solid Waste Rev.
(Montgomery County Resource Recovery Project), 6.30% due 7/1/2016* ................ A2/NR 2,051,160
1,000,000 Puerto Rico Highway & Transportation Authority Rev., 5 1/2% due 7/1/2036 ............. Baa1/A 982,710
630,000 Puerto Rico Housing Finance Corporation (Single Family Mortgage Rev.),
6.85% due 10/15/2023 .............................................................. Aaa/AAA 651,401
</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.
See Notes to Financial Statements.
22
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
MARYLAND SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- --------------- ----------- --------------
<S> <C> <C> <C>
$2,000,000 Washington Suburban Sanitary District, MD, 6 1/2% due 1/1/2016 ...................... Aa1/AA $ 2,079,440
-----------
TOTAL MUNICIPAL BONDS (Cost $49,185,236)-- 99.6% ................................................................ 50,179,738
VARIABLE RATE DEMAND NOTES (Cost $1,800,000)-- 3.6% ............................................................. 1,800,000
OTHER ASSETS LESS LIABILITIES-- (3.2)% .......................................................................... (1,597,318)
-----------
NET ASSETS-- 100.0% ............................................................................................. $50,382,420
===========
</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+ $ 4,818,800
5,000,000 Massachusetts Bay Transportation Authority General Transportation System
Rev., 5 3/4% due 3/1/2026 ........................................................ Aa2/AA 5,007,500
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Newton-Wellesley
Hospital), 6% due 7/1/2018 ....................................................... Aaa/AAA 5,091,000
3,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Williams College),
5 3/4% due 7/1/2019 .............................................................. Aaa/AA+ 3,523,555
5,100,000 Massachusetts Health & Educational Facilities Authority Rev. (Smith College),
5 3/4% due 7/1/2024 .............................................................. Aa1/AA 5,060,322
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Partners Healthcare
System), 5 3/8% due 7/1/2024 ..................................................... Aaa/AAA 4,672,450
5,000,000 Massachusetts Health & Educational Facilities Authority Rev.
(South Shore Hospital), 5 3/4% due 7/1/2029 ...................................... A2/A 4,466,750
4,000,000 Massachusetts Health & Educational Facilities Authority Rev.
(Harvard University), 6% due 7/1/2035 ............................................ Aaa/AAA 4,223,240
5,000,000 Massachusetts Housing Finance Agency (Rental Housing Mortgage Rev.),
5 1/2% due 7/1/2030* ............................................................. Aaa/AAA 4,648,050
4,985,000 Massachusetts Housing Finance Agency Rev. (Single Family Housing),
5 1/2% due 12/1/2030* ............................................................ Aaa/AAA 4,669,848
2,000,000 Massachusetts Industrial Finance Agency Electric Utility Rev. (Nantucket Electric
Company Project), 5 7/8% due 7/1/2017* ........................................... Aaa/AAA 2,015,260
3,500,000 Massachusetts Industrial Finance Agency Rev. (Phillips Academy),
5 3/8% due 9/1/2023 .............................................................. Aaa/AAA 3,372,635
3,000,000 Massachusetts Industrial Finance Agency Rev. (College of the Holy Cross),
5 5/8% due 3/1/2026 .............................................................. Aaa/AAA 2,950,050
2,000,000 Massachusetts Industrial Finance Agency Rev. (Suffolk University),
5 1/4% due 7/1/2027 .............................................................. Aaa/AAA 1,866,120
2,500,000 Massachusetts Lease Rev. (Route 3 North Transportation Improvement
Association), 5 3/8% due 6/15/2033 ............................................... Aaa/AAA 2,372,825
2,400,000 Massachusetts Port Authority Rev., 5% due 7/1/2023 ................................. Aa3/AA- 2,156,088
2,000,000 Massachusetts Port Authority Rev., 5% due 7/1/2028* ................................ Aa3/AA- 1,746,880
</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.
See Notes to Financial Statements.
23
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
MASSACHUSETTS SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------------ --------------- ----------- -----------
<S> <C> <C> <C>
$4,500,000 Massachusetts Port Authority Special Facilities Rev. (BOSFUEL Project),
5 3/4% due 7/1/2039* .............................................................. Aaa/AAA $ 4,377,105
2,000,000 Massachusetts State Consolidated Loan GOs, 5% due 5/1/2019 .......................... Aa2/AA- 1,847,160
2,500,000 Massachusetts State Consolidated Loan GOs, 5 7/8% due 2/1/2020 ...................... Aa2/AA- 2,561,075
1,000,000 Massachusetts Water Pollution Abatement Trust Pool Program,
5 1/2% due 8/1/2029 ............................................................... Aaa/AAA 971,770
4,500,000 Massachusetts Water Resources Authority Rev., 5 3/4% due 8/1/2039 ................... Aaa/AAA 4,495,410
5,000,000 Plymouth County, MA Certificates of Participation (Plymouth County
Correctional Facility Project), 5% due 4/1/2022 ................................... Aaa/AAA 4,489,350
4,000,000 Puerto Rico Highway & Transportation Authority Rev., 5 1/2% due 7/1/2036 ............ Baa1/A 3,930,840
-----------
TOTAL MUNICIPAL BONDS (Cost $85,843,199)--102.6% ............................................................... 85,334,083
OTHER ASSETS LESS LIABILITIES--(2.6)% .......................................................................... (2,128,579)
------------
NET ASSETS--100.0% ............................................................................................. $83,205,504
===========
MICHIGAN SERIES
<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 $ 5,236,650
5,000,000 Detroit, MI GOs, 5 1/2% due 4/1/2016 ................................................... Aaa/AAA 4,994,800
6,000,000 Detroit, MI Water Supply System Rev., 6 1/4% due 7/1/2012o ............................. Aaa/AAA 6,282,660
1,000,000 Grand Haven, MI Electric System Rev., 5 1/4% due 7/1/2013 .............................. Aaa/AAA 995,320
5,000,000 Grand Rapids, MI Water Supply System Rev., 5 3/4% due 1/1/2018 ......................... Aaa/AAA 5,001,300
2,000,000 Grand Traverse County, MI Hospital Finance Authority (Munson Healthcare
Obligated Group), 5% due 7/1/2028 ................................................... Aaa/NR 1,739,560
2,500,000 Kalamazoo, MI Hospital Finance Authority Rev. (Bronson Methodist
Hospital), 5 1/2% due 5/15/2028 ..................................................... Aaa/NR 2,402,475
5,000,000 Kent County, MI Airport Rev., 6.10% due 1/1/2025*o ..................................... Aaa/AAA 5,330,800
1,850,000 Kent County, MI Airport Rev., 5% due 1/1/2028* ......................................... Aaa/AAA 1,611,960
2,775,000 Kentwood, MI Public Schools Building & Site GOs, 6.40% due 5/1/2015o ................... Aa2/A+ 2,907,867
3,000,000 Lansing, MI Building Authority Rev., 5.60% due 6/1/2019 ................................ Aa3/AA+ 2,984,610
3,250,000 Marquette, MI Hospital Finance Authority Rev. (Marquette General Hospital),
6.10% due 4/1/2019 .................................................................. Aaa/AAA 3,340,838
1,000,000 Michigan and Redevco, Inc. Certificates of Participation,
5 1/2% due 6/1/2027 ................................................................. Aaa/AAA 971,060
3,000,000 Michigan Public Power Agency Rev. (Belle River Project), 5 1/4% due 1/1/2018 ........... A1/AA- 2,846,370
3,000,000 Michigan State Building Authority Rev., 6 1/4% due 10/1/2020 ........................... Aa2/AA 3,065,700
5,000,000 Michigan State GOs (Environmental Protection Program), 5.40% due 11/1/2019 ............. Aa1/AAA 4,849,200
</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.
See Notes to Financial Statements.
24
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
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 $ 4,503,500
5,250,000 Michigan State Hospital Finance Authority Rev. (Mercy Health Services
Obligated Group), 5 3/4% due 8/15/2026 .......................................... Aa3/AA- 5,166,263
6,000,000 Michigan State Hospital Finance Authority Rev. (Ascension Health Credit Group),
6 1/8% due 11/15/2026 ........................................................... Aa2/AA 6,024,180
5,000,000 Michigan State Hospital Finance Authority Rev. (Sparrow Obligated Group),
6% due 11/15/2036 ............................................................... Aaa/AAA 5,047,900
615,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.80% due 12/1/2016 ............................................................. NR/AA+ 620,682
3,925,000 Michigan State Housing Development Authority Rev. (Rental Housing),
6.65% due 4/1/2023 .............................................................. NR/AA- 4,071,049
4,000,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.05% due 12/1/2027 ............................................................. NR/AA+ 4,050,960
3,000,000 Michigan State Strategic Fund Pollution Control Rev. (Detroit Edison Company),
6 1/2% due 2/15/2016 ............................................................ Aaa/AAA 3,120,750
6,000,000 Michigan State Strategic Fund Pollution Control Rev. (General Motors Corp.),
6.20% due 9/1/2020 .............................................................. A2/A 6,121,860
5,000,000 Michigan State Trunk Line Rev., 5% due 11/1/2026 ................................... Aaa/AAA 4,489,950
6,300,000 Oxford, MI Area Community Schools GOs, 5 1/2% due 5/1/2021 ......................... Aaa/AAA 6,193,026
2,500,000 Puerto Rico Infrastructure Financing Authority Special Obligation
Bonds, 5 1/2% due 10/1/2040 ..................................................... Aaa/AAA 2,448,525
5,000,000 Royal Oak, MI Hospital Finance Authority Rev. (William Beaumont Hospital),
5 1/4% due 1/1/2020 ............................................................. Aa3/AA 4,623,050
1,000,000 University of Michigan Hospital Rev., 6 3/8% due 12/1/2024o ........................ Aa2/AA 1,003,240
5,000,000 Western Michigan State University Rev., 5 1/8% due 11/15/2022 ...................... Aaa/AAA 4,618,250
3,000,000 Wyandotte, MI Electric Rev., 6 1/4% due 10/1/2017 .................................. Aaa/AAA 3,088,560
------------
TOTAL MUNICIPAL BONDS (Cost $118,665,514)-- 100.5% ........................................................... 119,752,915
OTHER ASSETS LESS LIABILITIES-- (0.5)% ....................................................................... (550,435)
-----------
NET ASSETS-- 100.0% .......................................................................................... $119,202,480
===========
</TABLE>
MINNESOTA SERIES
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------------ --------------- ----------- ------------
<S> <C> <C> <C>
$1,500,000 Buffalo, MN Independent School District GOs, 6.15% due 2/1/2022o ................... Aaa/AAA $ 1,551,555
1,250,000 Burnsville-Eagan-Savage, MN Independent School District GOs,
5 1/8% due 2/1/2016 ............................................................. Aa1/NR 1,204,513
2,350,000 Burnsville-Eagan-Savage, MN Independent School District GOs,
5 1/8% due 2/1/2017 ............................................................. Aa1/NR 2,246,365
</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.
25
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
MINNESOTA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- --------------- ----------- ------------
<S> <C> <C> <C>
$1,500,000 Cloquet, MN Pollution Control Rev. (Potlatch Corporation Projects),
5.90% due 10/1/2026 ............................................................. NR/BBB+ $ 1,400,190
2,000,000 Cuyana Range Hospital District, MN Health Facilities Rev., 6% due 6/1/2029 ......... NR/NR 1,644,180
3,545,000 Fridley, MN Independent School District GOs, 5.35% due 2/1/2021 .................... Aaa/AAA 3,437,090
1,500,000 Minneapolis, MN GOs, 6% due 3/1/2016 ............................................... Aaa/AAA 1,521,330
4,725,000 Minneapolis, MN Rev. (University Gateway Project), 5 1/4% due 12/1/2024 ............ Aa2/AA 4,441,547
2,000,000 Minneapolis, MN Special School District GOs, 5% due 2/1/2014 ....................... Aa1/AA+ 1,935,560
5,000,000 Minneapolis - St. Paul, MN Housing & Redevelopment Authority Health Care
Rev. (Children's Health Care), 5 1/2% due 8/15/2025 ............................. Aaa/AAA 4,790,700
5,000,000 Minneapolis - St. Paul, MN Metropolitan Airports Commission Rev.,
5 3/4% due 1/1/2032 ............................................................. Aaa/AAA 5,022,550
2,250,000 Minnesota Agricultural & Economic Development Board Rev. (Evangelical
Lutheran Good Samaritan Society Project), 5.15% due 12/1/2022 ................... Aaa/AAA 2,098,913
1,250,000 Minnesota Agricultural & Economic Development Board Rev. (Evangelical
Lutheran Good Samaritan Society Project), 5% due 12/1/2023 ...................... Aaa/AAA 1,133,663
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 2,708,040
2,775,000 Minnesota Higher Education Facilities Authority Rev. (University of St. Thomas),
5.40% due 4/1/2022 .............................................................. A2/NR 2,640,218
2,000,000 Minnesota Higher Education Facilities Authority Rev. (St. John's University),
5.40% due 10/1/2022 ............................................................. A3/NR 1,887,520
1,775,000 Minnesota Higher Education Facilities Authority Rev. (University of St. Thomas),
5.40% due 4/1/2023 .............................................................. A2/NR 1,684,670
2,500,000 Minnesota Higher Education Facilities Authority Rev. (St. Olaf College),
5 1/4% due 4/1/2029 ............................................................. A3/NR 2,261,175
450,000 Minnesota Housing Finance Agency (Housing Development),
6 1/4% due 2/1/2020 ............................................................. Aa1/AA 452,075
790,000 Minnesota Housing Finance Agency (Single Family Mortgage), 5.65% due 7/1/2022* ..... Aa1/AA+ 764,949
4,750,000 Minnesota Housing Finance Agency (Single Family Mortgage), 6.85% due 1/1/2024* .... Aa1/AA+ 4,873,785
2,000,000 Minnesota Public Facilities Authority Water Pollution Control Rev.,
6 1/4% due 3/1/2015 ............................................................. Aaa/AAA 2,130,600
5,000,000 Minnesota State GOs, 5.70% due 5/1/2016 ............................................ Aaa/AAA 5,097,300
4,000,000 Minnesota State Retirement System Building Rev., 6% due 6/1/2030 ................... Aaa/AAA 4,151,160
5,000,000 North Saint Paul - Maplewood, MN Independent School District GOs,
5 1/8% due 2/l/2025 ............................................................. Aa1/AA+ 4,618,700
2,000,000 Northfield, MN Independent School District GOs, 5 1/4% due 2/1/2017 ................ Aa1/NR 1,950,600
4,500,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo
Medical Center), 6 1/4% due 11/15/2014 .......................................... NR/AA+ 4,663,035
</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.
26
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
MINNESOTA SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------ --------------- ----------- -----------
<S> <C> <C> <C>
$2,575,000 Rochester, MN Independent School District GOs, 5 5/8% due 2/1/2016 ........ Aaa/AA+ $ 2,683,665
2,715,000 Rochester, MN Independent School District GOs, 5 5/8% due 2/1/2017 ........ Aaa/AA+ 2,829,573
3,750,000 Saint Cloud, MN Health Care Rev. (The Saint Cloud Hospital
Obligated Group), 5 7/8% due 5/1/2030 .................................. Aaa/NR 3,785,888
4,500,000 Saint Paul, MN Housing and Redevelopment Health Care Rev.
(Regions Hospital Project), 5.30% due 5/15/2028 ........................ NR/BBB+ 3,630,330
45,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9 1/8% due 10/1/2000 ................................................... NR/CCC 44,997
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 54,715
50,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9 1/8% due 10/1/2001 ................................................... NR/CCC 49,744
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9 1/8% due 12/1/2001 ................................................... NR/CCC 9,948
55,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9 1/8% due 12/1/2001 ................................................... NR/CCC 54,936
5,000 Saint Paul Port Authority, MN Industrial Development Rev. Series L,
9 3/4% due 12/1/2001 ................................................... NR/CCC 4,979
50,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9 1/8% due 10/1/2002 ................................................... NR/CCC 49,561
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9 3/4% due 12/1/2002 ................................................... NR/CCC 9,918
60,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9 1/8% due 12/1/2002 ................................................... NR/CCC 59,405
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series L,
9 1/8% due 12/1/2002 ................................................... NR/CCC 9,901
1,500,000 Southern Minnesota Municipal Power Agency-- Power Supply System Rev.,
5 3/4% due 1/1/2018 .................................................... A2/A+ 1,500,405
8,700,000 Western Minnesota Municipal Power Agency-- Power Supply Rev.,
6 3/8% due 1/1/2016++ .................................................. Aaa/AAA 9,345,714
-----------
TOTAL MUNICIPAL BONDS (Cost $96,915,661)-- 98.3% .................................................... 96,440,656
VARIABLE RATE DEMAND NOTES (Cost $300,000)-- 0.3% ................................................... 300,000
OTHER ASSETS LESS LIABILITIES-- 1.4% ................................................................ 1,386,163
-----------
NET ASSETS-- 100.0% ................................................................................. $98,126,819
===========
</TABLE>
-----------------
+ Ratings have not been audited by Deloitte & Touche LLP.
++ Escrowed-to-maturity security.
See Notes to Financial Statements.
27
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
MISSOURI SERIES
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- --------------- ----------- -----------
<S> <C> <C> <C>
$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 $ 2,432,400
1,500,000 Hannibal, MO Industrial Development Authority Health Facilities Rev.
(Hannibal Regional Hospital), 5 3/4% due 3/1/2022 ................................ Aaa/AAA 1,496,265
2,000,000 Missouri Development Finance Board Solid Waste Disposal Rev. (The Procter &
Gamble Company Paper Products Project), 5.20% due 3/15/2029* ..................... NR/AA 1,834,740
105,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7 3/8% due 3/1/2006 .............................................................. Aaa/AAA 106,120
305,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7% due 3/1/2006 .................................................................. Aaa/AAA 308,050
1,000,000 Missouri State Environmental Improvement & Energy Resources Authority Rev.
(State Revolving Fund Program), 6.55% due 7/1/2014 ............................... Aaa/NR 1,046,400
2,500,000 Missouri State Environmental Improvement & Energy Resources Authority Rev.
(Union Electric Company Project), 5.45% due 10/1/2028* ........................... A1/A+ 2,330,250
2,000,000 Missouri State GOs, 5 5/8% due 4/1/2017 ............................................. Aaa/AAA 2,034,260
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 2,457,175
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+ 1,559,970
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+ 894,720
2,500,000 Missouri State Health & Educational Facilities Authority Rev. (SSM Health Care),
5% due 6/1/2022 .................................................................. Aaa/AAA 2,263,425
2,400,000 Missouri State Health & Educational Facilities Authority Rev.
(St. Louis University), 5.20% due 10/1/2026 ...................................... Aaa/AAA 2,234,592
2,500,000 Missouri State Health & Educational Facilities Authority Rev.
(The Washington University), 5% due 11/15/2037 ................................... Aa1/AA+ 2,162,825
790,000 Missouri State Housing Development Commission Housing Development Bonds
(Federally Insured Mortgage Loans), 6% due 10/15/2019 ............................ Aa2/AA+ 798,382
2,205,000 Missouri State Housing Development Commission Single Family Mortgage Rev.
(Homeownership Loan Program), 5.90% due 9/1/2028* ................................ NR/AAA 2,160,547
1,000,000 Puerto Rico Highway & Transportation Authority Rev., 5 1/2% due 7/1/2026 ............ Baa1/A 981,010
1,500,000 St. Charles County, MO Certificates of Participation (Public Water Supply),
5.10% due 12/1/2025 .............................................................. Aaa/NR 1,374,360
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+ 1,684,635
1,500,000 St. Louis, MO Municipal Finance Corporation City Justice Center Leasehold
Improvement Rev., 5.95% due 2/15/2016 ............................................ Aaa/AAA 1,549,920
2,000,000 Southeast Missouri Correctional Facility Lease Rev. (Missouri State Project),
5 3/4% due 10/15/2016++ .......................................................... Aa2/NR 2,074,520
1,500,000 Springfield, MO School District GOs, 5.85% due 3/1/2020 ............................. NR/AA+ 1,546,365
</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.
28
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
MISSOURI SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- --------------- ----------- ------------
<S> <C> <C> <C>
$2,750,000 University of Missouri Systems Facilities Rev., 5 1/2% due 11/1/2023.............. Aa2/AA+ $ 2,697,008
-----------
TOTAL MUNICIPAL BONDS (Cost $38,262,128)-- 97.8%......................................................... 38,027,939
VARIABLE RATE DEMAND NOTES (Cost $300,000)-- 0.8%........................................................ 300,000
OTHER ASSETS LESS LIABILITIES-- 1.4%..................................................................... 543,242
-----------
NET ASSETS-- 100.0%...................................................................................... $38,871,181
===========
</TABLE>
NEW YORK SERIES
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------------ --------------- ----------- -----------
<S> <C> <C> <C>
$2,500,000 Long Island Power Authority, NY Electric Systems General Rev.,
5 1/2% due 12/1/2029 ......................................................... Baa1/A- $ 2,358,050
2,000,000 Metropolitan Transportation Authority, NY (Dedicated Tax Fund),
5% due 4/1/2023 .............................................................. Aaa/AAA 1,809,620
4,000,000 New York City Municipal Water Finance Authority, NY Water & Sewer
System Rev., 5 1/8% due 6/15/2030 ............................................ Aaa/AAA 3,614,040
5,000 New York City, NY GOs, 7 1/4% due 8/15/2024 ..................................... A2/A 5,105
1,500,000 New York City, NY GOs, 6 1/4% due 4/15/2027 ..................................... A2/A 1,553,700
2,925,000 New York City, NY GOs, 6% due 5/15/2030 ......................................... A2/A 2,993,387
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 2,352,692
3,500,000 New York City, NY Transitional Finance Authority (Future Tax Secured Bonds),
5% due 5/1/2026 .............................................................. Aa3/AA 3,128,825
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 3,971,720
3,000,000 New York State Dormitory Authority Rev. (Fordham University),
5 3/4% due 7/1/2015 .......................................................... Aaa/AAA 3,058,500
4,000,000 New York State Dormitory Authority Rev. (Rochester Institute of Technology),
5 1/2% due 7/1/2018 .......................................................... Aaa/AAA 3,977,240
3,500,000 New York State Dormitory Authority Rev. (Mental Health Services Facilities
Improvement), 5 3/4% due 8/15/2022 ........................................... A3/A 3,469,620
3,000,000 New York State Dormitory Authority Rev. (Skidmore College), 5 3/8%
due 7/1/2023 ................................................................. Aaa/AAA 2,865,240
1,500,000 New York State Dormitory Authority Rev. (Vassar Brothers Hospital),
5 3/8% due 7/1/2025 .......................................................... Aaa/AAA 1,418,520
1,000,000 New York State Dormitory Authority Rev. (Mount Sinai/NYU Health Obligated
Group), 6 1/2% due 7/1/2025 .................................................. Baa1/BBB+ 1,046,350
2,000,000 New York State Dormitory Authority Rev. (Hospital for Special Surgery),
5% due 2/1/2028 .............................................................. Aaa/AAA 1,759,200
2,000,000 New York State Dormitory Authority Rev. (Rockefeller University),
5% due 7/1/2028 .............................................................. Aaa/AAA 1,807,120
</TABLE>
--------------
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
29
<PAGE>
Portfolios of Investments
SEPTEMBER 30, 2000
NEW YORK SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------------ --------------- ----------- -----------
<S> <C> <C> <C>
$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 $ 3,908,920
3,000,000 New York State Environmental Facilities Corporation Pollution Control Rev.
(State Water-- Revolving Fund), 6.90% due 11/15/2015 ........................ Aaa/AAA 3,264,810
3,000,000 New York State Housing Finance Agency Rev. (Phillips Village Project),
7 3/4% due 8/15/2017* ....................................................... A2/NR 3,192,990
3,000,000 New York State Local Government Assistance Corp., 6% due 4/1/2024 .............. A3/AA- 3,059,760
995,000 New York State Mortgage Agency Rev. (Homeowner Mortgage),
5 1/2% due 10/1/2028* ....................................................... Aa1/NR 942,076
1,000,000 New York State Mortgage Agency Rev. (Homeowner Mortgage),
5.65% due 4/1/2030* ......................................................... Aa1/NR 971,910
2,000,000 New York State Thruway Authority (Highway and Bridge Trust Fund),
5% due 4/1/2018 ............................................................. A3/AA- 1,850,380
2,000,000 New York State Thruway Authority Service Contract Rev., 6 1/4% due 4/1/2014o ... Baa1/NR 2,163,800
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 4,061,840
2,250,000 Port Authority of New York and New Jersey Consolidated Rev., 6 1/8% due 6/1/2094 A1/AA- 2,400,592
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 2,070,630
1,800,000 Triborough Bridge & Tunnel Authority General Purpose Rev., 5 1/2% due 1/1/2030 . Aa3/A+ 1,733,994
-----------
TOTAL MUNICIPAL BONDS (Cost $70,998,326)-- 97.6% ......................................................... 70,810,631
VARIABLE RATE DEMAND NOTES (Cost $600,000)-- 0.8% ........................................................ 600,000
OTHER ASSETS LESS LIABILITIES-- 1.6% ..................................................................... 1,134,192
-----------
NET ASSETS-- 100.0% ...................................................................................... $72,544,823
===========
</TABLE>
OHIO SERIES
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- --------------- ----------- ------------
<S> <C> <C> <C>
$2,250,000 Beavercreek Local School District, OH GOs (School Improvement Bonds),
5.70% due 12/1/2020 .................................................................... Aaa/AAA $ 2,270,880
3,450,000 Big Walnut Local School District, OH School Building Construction &
Improvement GOs, 7.20% due 6/1/2007o ................................................... Aaa/AAA 3,580,962
4,000,000 Butler County, OH Transportation Improvement District Highway
Improvement Rev., 5 1/8% due 4/1/2017 .................................................. Aaa/AAA 3,818,600
3,600,000 Cincinnati, OH GOs, 6% due 12/1/2035 ..................................................... Aa1/AA+ 3,719,772
4,000,000 Cleveland, OH Airport System Rev., 5 1/8% due 1/1/2027* .................................. Aaa/AAA 3,598,160
2,395,000 Cleveland, OH Airport System Rev., 5 1/8% due 1/1/2027 ................................... Aaa/AAA 2,184,767
5,000,000 Cleveland, OH Public Power System Rev., 5% due 11/15/2024 ................................ Aaa/AAA 4,519,600
3,915,000 Cleveland, OH Waterworks Improvement First Mortgage Rev.,
5 3/4% due 1/1/2021o ................................................................... Aaa/AAA 4,173,038
</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.
30
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
OHIO SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- --------------- ----------- ------------
<S> <C> <C> <C>
$ 85,000 Cleveland, OH Waterworks Improvement First Mortgage Rev.,
5 3/4% due 1/1/2021 .................................................................... Aaa/AAA $ 85,844
4,500,000 Columbus, OH Municipal Airport Authority Rev. (Port Columbus International
Airport Project), 6% due 1/1/2020* ..................................................... Aaa/AAA 4,556,025
1,000,000 Columbus, OH Municipal Airport Authority Rev. (Port Columbus International
Airport Project), 5% due 1/1/2028 ...................................................... Aaa/AAA 892,890
7,000,000 Franklin County, OH GOs, 5 3/8% due 12/1/2020 ............................................ Aaa/AAA 6,868,470
1,250,000 Franklin County, OH Hospital Improvement Rev. (The Children's
Hospital Project), 5.20% due 5/1/2029 .................................................. Aa3/NR 1,107,500
3,850,000 Franklin County, OH Hospital Rev. (Riverside United Methodist Hospital),
5 3/4% due 5/15/2020 ................................................................... A1/NR 3,588,469
2,500,000 Hamilton County, OH Sewer System Rev., 51/2% due 12/1/2017 ............................... Aaa/AAA 2,500,900
5,000,000 Hamilton, OH Electric System Mortgage Rev., 6% due 10/15/2023 ............................ Aaa/AAA 5,085,750
1,000,000 Hudson Local School District, OH GOs, 7.10% due 12/15/2013o .............................. Al/NR 1,025,360
6,425,000 Mahoning County, OH Hospital Rev. (Forum Health Obligated Group),
5% due 11/15/2025 ...................................................................... Aaa/AAA 5,741,251
2,000,000 Ohio Air Quality Development Authority Rev. (Cincinnati Gas & Electric
Company Project), 5.45% due 1/1/2024 ................................................... Aaa/AAA 1,929,840
6,500,000 Ohio Air Quality Development Authority Rev. (JMG Project),
6 3/8% due 1/1/2029* ................................................................... Aaa/AAA 6,710,470
4,415,000 Ohio Housing Finance Agency Residential Mortgage Rev. (Mortgage-Backed
Securities Program), 6.10% due 9/1/2028* ............................................... Aaa/NR 4,458,135
2,500,000 Ohio Housing Finance Agency Residential Mortgage Rev., 5.40% due 9/1/2029* ............... Aaa/NR 2,353,125
2,500,000 Ohio State Environmental Facilities Rev. (Ford Motor Company Project),
6.15% due 6/1/2030* .................................................................... A2/A 2,563,400
4,000,000 Ohio State Higher Educational Facilities Commission Rev. (University of
Dayton Project), 5.40% due 12/1/2022 ................................................... Aaa/AAA 3,888,880
4,000,000 Ohio State Public Facilities Commission Rev. (Higher Education Capital Facilities),
6.30% due 5/1/2006o .................................................................... Aaa/AAA 4,121,960
3,000,000 Ohio State University (A State University of Ohio), 5.80% due 12/1/2029 .................. Aa2/AA 3,028,230
2,035,000 Ohio State Water Development Authority Rev. (Safe Water),
9 3/8% due 12/1/2010++ ................................................................. Aaa/AAA 2,425,354
7,500,000 Ohio State Water Development Authority Rev. (Fresh Water), 5 1/8% due 12/1/2023 .......... Aaa/AAA 6,932,175
5,000,000 Ohio State Water Development Authority Rev. (Community Assistance),
5 3/8% due 12/1/2024 .................................................................... Aaa/AAA 4,825,900
5,000,000 Ohio State Water Development Authority Rev. (Dayton Power & Light Co.
Project), 6.40% due 8/15/2027 .......................................................... A2/BBB+ 5,067,700
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+ 2,559,425
3,000,000 Ohio Turnpike Commission, OH Turnpike Rev., 51/2% due 2/15/2026 .......................... Aaa/AAA 2,979,510
</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.
31
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
OHIO SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- --------------- ----------- ------------
<S> <C> <C> <C>
$2,955,000 Pickerington Local School District, OH School Building Construction GOs,
8% due 12/1/2005++ ..................................................................... Aaa/AAA $ 3,250,234
4,000,000 Puerto Rico Highway & Transportation Authority Rev., 51/2% due 7/1/2036 .................. Baa1/A 3,930,840
2,500,000 Puerto Rico Infrastructure Financing Authority Rev., 51/2% due 10/1/2040 ................. Aaa/AAA 2,448,525
1,000,000 Puerto Rico Telephone Authority Special Obligation Bonds, 51/2% due 1/1/2022o ............ A/AAA 1,039,970
2,500,000 Twinsburg City School District, OH School Improvement GOs,
5.90% due 12/1/2021 .................................................................... Aaa/AAA 2,558,275
2,000,000 Worthington City School District, OH School Building Construction &
Improvement GOs, 8 3/4% due 12/1/2002 .................................................. Aaa/AAA 2,033,720
-------------
TOTAL MUNICIPAL BONDS (Cost $128,179,492)--98.8% .................................................................. 128,423,906
VARIABLE RATE DEMAND NOTES (Cost $2,200,000)--1.7% ................................................................ 2,200,000
OTHER ASSETS LESS LIABILITIES--(0.5)% ............................................................................. (612,860)
-------------
NET ASSETS--100.00% ............................................................................................... $130,011,046
============
<CAPTION>
OREGON SERIES
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 $ 1,661,480
2,000,000 Chemeketa, OR Community College District GOs, 5.95% due 6/1/2016o ........................ Aaa/AAA 2,130,220
1,500,000 Clackamas County, OR Hospital Facility Authority Rev. (Legacy Health System),
5 1/4% due 2/15/2018 ................................................................... NR/AA 1,407,195
1,000,000 Clackamas & Washington Counties, OR GOs (West Linn-- Wilsonville
School District), 5% due 6/1/2017 ...................................................... Aaa/AAA 948,940
1,285,000 Eugene, OR Trojan Nuclear Project Rev., 5.90% due 9/1/2009 ............................... Aa1/AA- 1,301,062
1,250,000 Multnomah County, OR Education Facility Rev. (University of Portland),
5% due 4/1/2018 ........................................................................ Aaa/AAA 1,170,975
1,750,000 Multnomah County School District, OR GOs, 51/2% due 6/1/2015 ............................. A1/A+ 1,761,707
2,000,000 North Clackamas Parks & Recreation District-- Clackamas County, OR Rev ...................
(Recreational Facilities), 5.70% due 4/1/2013 .......................................... NR/A- 2,112,020
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- 1,879,720
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- 763,208
2,250,000 Oregon Department of Administrative Services Certificates of Participation,
5% due 5/1/2024 ........................................................................ Aaa/AAA 2,052,383
2,500,000 Oregon Department of Administrative Services Certificates of Participation,
6% due 5/1/2026 ........................................................................ Aaa/AAA 2,595,100
1,000,000 Oregon Department of Transportation Regional Light Rail Extension Rev.,
6.20% due 6/1/2008 ..................................................................... Aaa/AAA 1,063,690
</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.
32
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
OREGON SERIES (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- --------------- ----------- ------------
<S> <C> <C> <C>
$2,000,000 Oregon Health, Housing, Educational & Cultural Facilities Authority Rev.
Linfield College Project), 5 1/4% due 10/1/2023 ........................................ Baal/NR $ 1,718,540
2,500,000 Oregon Health, Housing, Educational & Cultural Facilities Authority Rev.
(Reed College Project), 5 3/8% due 7/1/2025 ............................................ NR/AA- 2,357,925
1,250,000 Oregon Health Sciences University Rev., 5 1/4% due 7/1/2028 .............................. Aaa/AAA 1,146,750
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+ 2,005,560
2,500,000 Oregon Housing & Community Services Department Mortgage Rev.
(Single Family Mortgage Program), 6 1/4% due 7/1/2029* ................................. Aa2/NR 2,561,450
2,500,000 Oregon State Bond Bank Rev. (Oregon Economic & Community
Development Department), 51/2% due 1/1/2026 ............................................ Aaa/AAA 2,459,550
500,000 Oregon State GOs (Veterans' Welfare), 9% due 10/1/2006 ................................... Aa2/AA 612,540
1,185,000 Oregon State GOs (Veterans' Welfare), 5 7/8% due 10/1/2018 ............................... Aa2/AA 1,209,162
250,000 Oregon State GOs (Elderly & Disabled Housing), 7.20% due 8/1/2021 ........................ Aa2/AA 255,470
1,000,000 Oregon State GOs (Elderly & Disabled Housing), 6.60% due 8/1/2022* ....................... Aa2/AA 1,048,480
950,000 Port of Portland, OR International Airport Rev., 7.10% due 7/1/2021*o .................... Aaa/AAA 1,095,207
50,000 Port of Portland, OR International Airport Rev., 7.10% due 7/1/2021*o .................... Aaa/AAA 51,445
500,000 Port of Portland, OR International Airport Rev., 5 3/4% due 7/1/2025* .................... Aaa/AAA 497,335
1,500,000 Port of Portland, OR International Airport Rev., 5 5/8% due 7/1/2026* .................... Aaa/AAA 1,466,925
2,000,000 Portland, OR GOs, 5.60% due 6/1/2014 ..................................................... Aa2/NR 2,034,580
1,250,000 Portland, OR Hospital Facilities Authority Rev. (Legacy Health System),
6 5/8% due 5/1/2011 .................................................................... Aaa/AAA 1,288,075
2,500,000 Portland, OR Sewer System Rev., 5% due 6/1/2015 .......................................... Aaa/AAA 2,406,725
1,000,000 Puerto Rico Highway & Transportation Authority Rev., 51/2% due 7/1/2026 .................. Baa1/A 981,010
630,000 Puerto Rico Housing Finance Corp. (Single Family Mortgage Rev.),
6.85% due 10/15/2023 ................................................................... Aaa/AAA 651,401
1,000,000 Puerto Rico Ports Authority Rev., 7% due 7/1/2014* ....................................... Aaa/AAA 1,036,160
2,000,000 Salem, OR Hospital Facility Authority Rev. (Salem Hospital), 5% due 8/15/2018 ............ NR/AA- 1,810,860
1,000,000 Salem, OR Pedestrian Safety Improvements GOs, 5 3/4% due 5/1/2011o ....................... Aaa/AAA 1,054,550
1,110,000 Tualatin Development Commission, OR (Urban Renewal & Redevelopment),
7 3/8% due 1/1/2007 .................................................................... Baa1/NR 1,116,405
500,000 Virgin Islands Public Finance Authority Rev., 51/2% due 10/1/2022 ........................ NR/BBB- 465,640
2,500,000 Washington and Multnomah Counties, OR (Beaverton School District),
5% due 8/1/2017 ........................................................................ Aa2/AA- 2,358,450
1,500,000 Washington County, OR Unified Sewerage Agency Rev., 5 3/4% due 10/1/2011 ................. Aaa/AAA 1,600,890
------------
TOTAL MUNICIPAL BONDS (Cost $56,003,566)--100.7% ................................................................... 56,138,785
VARIABLE RATE DEMAND NOTES (Cost $1,100,000)--2.0% ................................................................. 1,100,000
OTHER ASSETS LESS LIABILITIES--(2.7)% .............................................................................. (1,519,872)
------------
NET ASSETS--100.0% ................................................................................................. $ 55,718,913
============
</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.
33
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
SOUTH CAROLINA
<TABLE>
<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 $ 761,241
770,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 8/1/2004 ..................................................................... A1/A 786,786
800,000 Charleston County, SC Public Facilities Corp. Certificates of Participation
7.20% due 2/1/2005 ..................................................................... A1/A 817,432
2,500,000 Charleston, SC Waterworks & Sewer System Rev., 6% due 1/1/2012 ........................... A1/AA- 2,577,050
5,000,000 Coastal Carolina University, SC Improvement Rev.,
5.30% due 6/1/2026 ..................................................................... Aaa/NR 4,711,050
6,000,000 Darlington County, SC Industrial Development Rev. (Nucor Corporation Project),
5 3/4% due 8/1/2023* ................................................................... A1/AA- 5,821,500
3,500,000 Darlington County, SC Industrial Development Rev. (Sonoco Products
Company Project), 6% due 4/1/2026* ..................................................... A2/A 3,419,640
3,000,000 Fairfield County, SC Pollution Control Rev. (South Carolina Electric & Gas
Company), 6 1/2% due 9/1/2014 ........................................................... A1/A 3,164,730
1,000,000 Georgetown County, SC Environmental Improvement Rev.,
(International Paper Company), 5.95% due 3/15/2014 ..................................... Baa1/BBB+ 1,016,660
3,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5 1/2% due 5/1/2016 ............. Aa3/AA 2,926,320
2,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5 1/4% due 5/1/2023 ............. Aa3/AA 1,817,940
3,000,000 Greenwood County, SC Hospital Facilities Rev. (Self Memorial Hospital),
5 7/8% due 10/1/2017 ................................................................... Aaa/AAA 3,035,580
3,000,000 Lexington County, SC Hospital Rev. (Health Services District, Inc.),
5 1/8% due 11/1/2026 ................................................................... Aaa/AAA 2,695,890
1,000,000 Medical University South Carolina Hospital Facilities Rev., 5.60% due 7/1/2011 ........... Aaa/AAA 1,040,910
3,000,000 Mount Pleasant, SC Water & Sewer Rev., 6% due 12/1/2020 .................................. Aaa/AAA 3,051,630
1,500,000 North Charleston Sewer District, SC Rev., 6 3/8% due 7/1/2012 ............................ Aaa/AAA 1,672,320
1,250,000 Piedmont Municipal Power Agency, SC Electric Rev., 6 1/4% due 1/1/2021 ................... Aaa/AAA 1,349,138
1,000,000 Puerto Rico Highway & Transportation Authority Rev., 5 1/2% due 7/1/2036 ................. Baa1/A 982,710
2,000,000 Puerto Rico Highway & Transportation Authority Rev., 5% due 7/1/2038 ..................... Baa1/A 1,761,320
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 2,332,525
2,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp
Corp. Project), 7.45% due 4/1/2021* .................................................... Baa1/BBB+ 2,054,860
1,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp
Corp. Project), 7 1/8% due 9/1/2021* ................................................... Baa1/BBB+ 1,026,430
5,000,000 Rock Hill, SC Combined Utilities System Rev., 5% due 1/1/2020 ............................ Aaa/AAA 4,555,450
3,000,000 South Carolina Jobs-- Economic Development Authority Hospital Rev.
(Anderson Area Medical Center, Inc.), 5 1/4% due 2/1/2018 .............................. NR/AA- 2,833,350
2,000,000 South Carolina Jobs-- Economic Development Authority Hospital Rev.
(Georgetown Memorial Hospital), 5% due 11/1/2029 ....................................... Aaa/NR 1,736,100
</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.
34
<PAGE>
PORTFOLIOS OF INVESTMENTS
SEPTEMBER 30, 2000
SOUTH CAROLINA (CONTINUED)
<TABLE>
<CAPTION>
FACE RATINGS+ MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P VALUE
------- --------------- ----------- ------------
<S> <C> <C> <C>
$5,000,000 South Carolina Public Service Authority Rev., 5 7/8% due 1/1/2023 ........................ Aaa/AAA $ 5,056,800
1,965,000 South Carolina State Housing Finance 8c Development Authority Rental
Housing Rev. (North Bluff Project), 5.60% due 7/1/2016 ................................. NR/AA 1,912,711
1,000,000 South Carolina State Housing Finance & Development Authority Rev.
(Multi-Family Development), 6 7/8% due 11/15/2023 ...................................... Aaa/NR 1,032,980
4,640,000 South Carolina State Housing Finance & Development Authority Mortgage
Rev., 5.40% due 7/1/2029* .............................................................. Aaa/NR 4,343,272
5,000,000 South Carolina State Ports Authority Rev., 5.30% due 7/1/2026* ........................... Aaa/AAA 4,599,800
5,000,000 South Carolina Transportation Infrastructure Bank Rev.,
5 3/8% due 10/1/2024 ................................................................... Aaa/NR 4,814,150
2,500,000 Spartanburg, SC Water System Rev., 5% due 6/1/2027 ....................................... Aaa/AAA 2,235,600
3,000,000 University of South Carolina Rev., 5 3/4% due 6/1/2026 ................................... Aaa/AAA 2,991,750
------------
TOTAL MUNICIPAL BONDS (Cost $85,705,308)--98.2% .................................................................... 84,935,625
VARIABLE RATE DEMAND NOTES (Cost $200,000)--0.2% ................................................................... 200,000
OTHER ASSETS LESS LIABILITIES--1.6% ................................................................................ 1,338,803
------------
NET ASSETS--100.0% ................................................................................................. $ 86,474,428
============
</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.
35
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 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 ................................... $90,860,702 $38,070,507 $39,156,684 $46,959,075 $50,179,738
Short-term holdings .................................. 200,000 -- -- 600,000 1,800,000
----------- ----------- ----------- ----------- -----------
91,060,702 38,070,507 39,156,684 47,559,075 51,979,738
Cash ................................................... 150,862 38,206 138,794 63,035 130,622
Interest receivable .................................... 1,555,151 728,252 684,597 838,440 883,992
Receivable for securities sold ......................... 55,000 -- -- 65,000 30,125
Expenses prepaid to shareholder service agent .......... 8,023 3,343 3,677 3,677 4,011
Receivable for Capital Stock sold ...................... 7,017 -- 299 54,036 12,856
Other .................................................. 1,572 1,929 532 1,605 616
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS ........................................... 92,838,327 38,842,237 39,984,583 48,584,868 53,041,960
----------- ----------- ----------- ----------- -----------
LIABILITIES:
Dividends payable ...................................... 160,783 64,994 64,210 85,267 84,588
Payable for Capital Stock repurchased .................. 84,347 21,856 57,608 23,218 6,543
Payable for securities purchased ....................... -- -- -- -- 2,479,917
Loan payable ........................................... -- 750,000 -- -- --
Accrued expenses and other ............................. 115,389 65,429 65,263 75,939 88,492
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES ...................................... 360,519 902,279 187,081 184,424 2,659,540
----------- ----------- ----------- ----------- -----------
NET ASSETS ............................................. $92,477,808 $37,939,958 $39,797,502 $48,400,444 $50,382,420
=========== =========== =========== =========== ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A .............................................. $ 11,445 $ 5,319 $ 4,899 $ 6,035 $ 6,167
Class C .............................................. 138 11 32 74 21
Class D .............................................. 502 72 278 92 279
Additional paid-in capital ............................. 94,995,927 38,800,850 39,540,245 48,198,045 49,463,129
Undistributed/accumulated net realized
gain (loss) .......................................... (1,151,531) (13,339) 218,813 112,395 (81,678)
Net unrealized appreciation (depreciation)
of investments ....................................... (1,378,673) (852,955) 33,235 83,803 994,502
----------- ----------- ----------- ----------- -----------
NET ASSETS ............................................. $92,477,808 $37,939,958 $39,797,502 $48,400,444 $50,382,420
=========== =========== =========== =========== ===========
NET ASSETS:
Class A .............................................. $87,583,047 $37,358,193 $37,423,140 $47,098,739 $48,041,921
Class C .............................................. $ 1,055,819 $ 76,321 $ 245,564 $ 580,966 $ 161,206
Class D .............................................. $ 3,838,942 $ 505,444 $ 2,128,798 $ 720,739 $ 2,179,293
SHARES OF CAPITAL STOCK OUTSTANDING
($.001 par value):
Class A .............................................. 11,445,278 5,318,735 4,898,762 6,035,094 6,166,749
Class C .............................................. 137,939 10,873 32,075 74,448 20,664
Class D .............................................. 501,618 72,000 278,023 92,379 279,351
NET ASSET VALUE PER SHARE:
CLASS A .............................................. $7.65 $7.02 $7.64 $7.80 $7.79
CLASS C .............................................. $7.65 $7.02 $7.66 $7.80 $7.80
CLASS D .............................................. $7.65 $7.02 $7.66 $7.80 $7.80
</TABLE>
----------
See Notes to Financial Statements.
36
<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>
$ 85,334,083 $119,752,915 $96,440,656 $38,027,939 $70,810,631 $128,423,906 $56,138,785 $84,935,625
-- -- 300,000 300,000 600,000 2,200,000 1,100,000 200,000
------------ ------------ ----------- ----------- ----------- ------------ ----------- -----------
85,334,083 119,752,915 96,740,656 38,327,939 71,410,631 130,623,906 57,238,785 85,135,625
37,022 98,647 104,831 104,665 114,170 128,483 128,061 98,479
1,267,009 2,187,375 1,610,399 732,247 1,272,653 2,246,782 1,029,129 1,517,971
-- -- -- 30,005 -- -- 75,000 --
8,357 10,029 9,360 3,342 6,017 10,363 4,680 7,689
-- 303 30,760 1,904 -- 20,309 1,983 3,898
1,125 15,852 1,288 509 9,604 16,488 686 1,122
------------ ------------ ----------- ----------- ----------- ------------ ----------- -----------
86,647,596 122,065,121 98,497,294 39,200,611 72,813,075 133,046,331 58,478,324 86,764,784
------------ ------------ ----------- ----------- ----------- ------------ ----------- -----------
140,061 217,145 163,353 61,480 139,921 231,717 91,608 143,348
182,784 42,203 70,044 195,366 25,107 182,541 116,810 29,670
-- 2,448,475 -- -- -- 2,448,475 2,469,481 --
3,000,000 -- -- -- -- -- -- --
119,247 154,818 137,078 72,584 103,224 172,552 81,512 117,338
------------ ------------ ----------- ----------- ----------- ------------ ----------- -----------
3,442,092 2,862,641 370,475 329,430 268,252 3,035,285 2,759,411 290,356
------------ ------------ ----------- ----------- ----------- ------------ ----------- -----------
$ 83,205,504 $119,202,480 $98,126,819 $38,871,181 $72,544,823 $130,011,046 $55,718,913 $86,474,428
============ ============ =========== =========== =========== ============ =========== ===========
$ 10,897 $ 14,462 $ 13,143 $ 5,230 $ 8,947 $ 16,792 $ 7,079 $ 10,594
38 44 3 3 52 29 49 117
192 198 222 44 333 185 330 581
83,984,240 117,875,860 98,803,732 38,928,109 72,165,586 129,809,293 55,413,581 87,262,026
(280,747) 224,515 (215,276) 171,984 557,600 (59,667) 162,655 (29,207)
(509,116) 1,087,401 (475,005) (234,189) (187,695) 244,414 135,219 (769,683)
------------ ------------ ----------- ----------- ----------- ------------ ----------- -----------
$ 83,205,504 $119,202,480 $98,126,819 $38,871,181 $72,544,823 $130,011,046 $55,718,913 $86,474,428
============ ============ =========== =========== =========== ============ =========== ===========
$ 81,486,759 $117,241,407 $96,474,864 $38,528,649 $69,549,335 $128,363,851 $52,889,792 $81,137,707
$ 282,743 $ 356,431 $ 23,179 $ 21,903 $ 402,086 $ 221,870 $ 363,879 $ 893,240
$ 1,436,002 $ 1,604,642 $ 1,628,776 $ 320,629 $ 2,593,402 $ 1,425,325 $ 2,465,242 $ 4,443,481
10,896,630 14,461,822 13,142,889 5,230,201 8,947,049 16,792,360 7,078,608 10,594,176
37,825 44,007 3,157 2,973 51,677 28,864 48,730 116,748
192,085 198,158 221,875 43,528 333,332 185,463 330,177 580,791
$7.48 $8.11 $7.34 $7.37 $7.77 $7.64 $7.47 $7.66
$7.48 $8.10 $7.34 $7.37 $7.78 $7.69 $7.47 $7.65
$7.48 $8.10 $7.34 $7.37 $7.78 $7.69 $7.47 $7.65
</TABLE>
37
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
National Colorado Georgia Louisiana Maryland
Series Series Series Series Series
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................................... $ 5,720,238 $ 2,416,031 $ 2,426,371 $ 2,952,547 $ 2,956,674
----------- ----------- ----------- ----------- -----------
EXPENSES:
Management fees ........................................ 472,503 204,606 206,690 246,477 246,125
Distribution and service fees .......................... 139,888 47,244 63,531 61,944 70,819
Shareholder account services ........................... 125,075 59,912 61,967 64,362 69,309
Registration ........................................... 43,214 9,271 10,079 10,681 10,660
Auditing and legal fees ................................ 33,814 24,243 26,309 27,843 25,849
Custody and related services ........................... 27,034 15,770 11,561 14,886 16,888
Shareholder reports and communications ................. 15,687 9,802 10,326 12,062 17,271
Directors' fees and expenses ........................... 7,883 6,500 6,450 6,696 6,697
Miscellaneous .......................................... 3,698 2,736 2,404 2,509 4,632
----------- ----------- ----------- ----------- -----------
Total Expenses Before Reimbursement .................... 868,796 380,084 399,317 447,460 468,250
Reimbursement of expenses .............................. -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Expenses After Reimbursement ..................... 868,796 380,084 399,317 447,460 468,250
----------- ----------- ----------- ----------- -----------
Net Investment Income .................................. 4,851,442 2,035,947 2,027,054 2,505,087 2,488,424
----------- ----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments ................ 213,593 (13,339) 343,546 121,919 (81,678)
Net change in unrealized appreciation/
depreciation of investments .......................... (599,681) (193,468) (124,939) 69,334 11,226
----------- ----------- ----------- ----------- -----------
Net Gain (Loss) on Investments ......................... (386,088) (206,807) 218,607 191,253 (70,452)
----------- ----------- ----------- ----------- -----------
Increase in Net Assets from Operations ................. $ 4,465,354 $ 1,829,140 $ 2,245,661 $ 2,696,340 $ 2,417,972
=========== =========== =========== =========== ===========
</TABLE>
----------
See Notes to Financial Statements.
38
<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>
$ 5,180,754 $ 7,125,394 $ 5,979,946 $ 2,339,895 $ 4,335,808 $ 7,655,972 $ 3,129,366 $ 5,330,106
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
445,379 604,508 513,601 202,975 369,445 646,201 272,180 450,635
109,586 139,178 118,051 45,774 98,045 139,499 74,640 144,102
121,994 164,505 153,243 61,380 91,821 169,869 75,449 127,423
13,682 16,134 11,808 7,089 11,598 17,124 9,825 11,719
36,635 40,646 40,703 21,613 28,772 43,256 29,772 34,333
27,370 26,155 31,235 17,633 9,101 27,822 16,811 37,118
17,811 24,042 24,975 15,812 16,505 34,931 15,921 17,544
7,592 8,041 7,831 6,493 7,361 8,203 6,648 7,228
3,770 5,500 6,152 2,445 4,225 8,011 2,712 3,674
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
783,819 1,028,709 907,599 381,214 636,873 1,094,916 503,958 833,776
-- (164,296) -- -- (99,719) (173,301) -- --
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
783,819 864,413 907,599 381,214 537,154 921,615 503,958 833,776
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
4,396,935 6,260,981 5,072,347 1,958,681 3,798,654 6,734,357 2,625,408 4,496,330
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(122,777) 250,346 (215,276) 177,059 639,600 (12,277) 173,315 105,545
929,543 1,051,692 254,864 182,349 42,308 237,548 84,672 376,387
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
806,766 1,302,038 39,588 359,408 681,908 225,271 257,987 481,932
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 5,203,701 $ 7,563,019 $ 5,111,935 $ 2,318,089 $ 4,480,562 $ 6,959,628 $ 2,883,395 $ 4,978,262
=========== =========== =========== =========== =========== =========== =========== ===========
</TABLE>
39
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
National Series Colorado Series Georgia Series
-------------------------- ------------------------- -------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
-------------------------- ------------------------- -------------------------
2000 1999 2000 1999 2000 1999
----------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income ................... $ 4,851,442 $ 5,024,887 $ 2,035,947 $ 2,172,275 $ 2,027,054 $ 2,246,763
Net realized gain (loss) on investments . 213,593 211,923 (13,339) 430,454 343,546 884,473
Net change in unrealized appreciation/
depreciation of investments .......... (599,681) (8,530,095) (193,468) (3,920,316) (124,939) (4,441,923)
----------- ------------ ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS ............... 4,465,354 (3,293,285) 1,829,140 (1,317,587) 2,245,661 (1,310,687)
----------- ------------ ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A .............................. (4,614,110) (4,766,686) (2,000,964) (2,141,971) (1,931,061) (2,145,554)
Class C .............................. (19,389) (996) (2,342) (638) (7,726) (1,879)
Class D .............................. (217,943) (257,205) (32,641) (29,666) (88,267) (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 ........................ (4,851,442) (5,024,887) (2,357,890) (2,172,275) (3,031,173) (2,518,746)
----------- ------------ ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ....... 7,428,871 5,374,193 1,873,190 3,938,964 2,752,924 3,266,648
Investment of dividends ................. 2,572,024 2,813,446 1,026,118 1,250,466 1,074,285 1,454,489
Exchanged from associated Funds ......... 25,023,673 22,062,389 3,660,418 7,143,293 162,883 945,166
Shares issued in payment of
gain distributions ................... -- -- 220,500 -- 771,491 213,097
----------- ------------ ----------- ----------- ----------- -----------
Total ................................... 35,024,568 30,250,028 6,780,226 12,332,723 4,761,583 5,879,400
----------- ------------ ----------- ----------- ----------- -----------
Cost of shares repurchased .............. (12,242,422) (11,785,860) (8,675,605) (4,176,969) (8,380,502) (7,410,411)
Exchanged into associated Funds ......... (28,408,686) (20,956,923) (5,262,351) (4,966,613) (983,972) (686,937)
----------- ------------ ----------- ----------- ----------- -----------
Total ................................... (40,651,108) (32,742,783) (13,937,956) (9,143,582) (9,364,474) (8,097,348)
----------- ------------ ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS ...... (5,626,540) (2,492,755) (7,157,730) 3,189,141 (4,602,891) (2,217,948)
----------- ------------ ----------- ----------- ----------- -----------
Decrease in Net Assets .................. (6,012,628) (10,810,927) (7,686,480) (300,721) (5,388,403) (6,047,381)
NET ASSETS:
Beginning of year ....................... 98,490,436 109,301,363 45,626,438 45,927,159 45,185,905 51,233,286
----------- ------------ ----------- ----------- ----------- -----------
END OF YEAR ............................. $92,477,808 $ 98,490,436 $37,939,958 $45,626,438 $39,797,502 $45,185,905
=========== ============ =========== =========== =========== ===========
</TABLE>
----------
See Notes to Financial Statements.
40
<PAGE>
<TABLE>
<CAPTION>
Louisiana Series Maryland Series Massachusetts Series Michigan Series
-------------------------- -------------------------- -------------------------- ----------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
-------------------------- -------------------------- -------------------------- ----------------------------
2000 1999 2000 1999 2000 1999 2000 1999
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,505,087 $ 2,624,908 $ 2,488,424 $ 2,648,828 $ 4,396,935 $ 4,783,992 $ 6,260,981 $ 6,558,436
121,919 303,123 (81,678) 30,812 (122,777) 836,791 250,346 616,641
69,334 (4,254,499) 11,226 (3,439,773) 929,543 (10,688,280) 1,051,692 (10,841,083)
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
2,696,340 (1,326,468) 2,417,972 (760,133) 5,203,701 (5,067,497) 7,563,019 (3,666,006)
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
(2,451,535) (2,592,830) (2,384,753) (2,529,563) (4,306,283) (4,692,195) (6,173,631) (6,466,582)
(20,470) -- (4,329) (491) (9,149) (1,124) (12,086) (678)
(33,082) (32,078) (99,342) (118,774) (81,503) (90,673) (75,264) (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)
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
(2,812,949) (3,378,188) (2,514,924) (2,844,413) (5,113,964) (5,436,522) (6,761,075) (9,161,853)
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
2,334,407 2,639,130 3,131,271 2,360,545 1,506,587 4,563,932 4,505,382 5,706,815
1,060,252 1,282,591 1,388,312 1,604,067 2,620,626 2,809,223 3,505,371 3,963,684
87,683 79,357 557,580 302,980 14,610,939 22,685,568 1,002,523 835,726
206,340 498,800 19,784 148,824 539,579 465,453 373,853 1,930,148
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
3,688,682 4,499,878 5,096,947 4,416,416 19,277,731 30,524,176 9,387,129 12,436,373
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
(7,115,679) (4,264,493) (6,531,807) (6,166,502) (15,058,804) (10,234,861) (15,436,089) (16,216,494)
(506,764) (224,567) (458,314) (291,435) (17,193,724) (24,490,848) (3,298,834) (1,646,007)
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
(7,622,443) (4,489,060) (6,990,121) (6,457,937) (32,252,528) (34,725,709) (18,734,923) (17,862,501)
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
(3,933,761) 10,818 (1,893,174) (2,041,521) (12,974,797) (4,201,533) (9,347,794) (5,426,128)
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
(4,050,370) (4,693,838) (1,990,126) (5,646,067) (12,885,060) (14,705,552) (8,545,850) (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
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
$48,400,444 $52,450,814 $50,382,420 $52,372,546 $83,205,504 $96,090,564 $119,202,480 $127,748,330
=========== =========== =========== =========== =========== =========== ============ ============
</TABLE>
41
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Minnesota Series Missouri Series New York Series
------------------------- ------------------------ ------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------- ------------------------ ------------------------
2000 1999 2000 1999 2000 1999
----------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income .................... $ 5,072,347 $ 5,604,958 $ 1,958,681 $ 2,172,439 $ 3,798,654 $ 3,942,335
Net realized gain (loss) on investments .. (215,276) 607,305 177,059 48,875 639,600 (30,466)
Net change in unrealized appreciation/
depreciation of investments ........... 254,864 (8,515,969) 182,349 (3,922,017) 42,308 (7,250,070)
----------- ------------ ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS ................ 5,111,935 (2,303,706) 2,318,089 (1,700,703) 4,480,562 (3,338,201)
----------- ------------ ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ............................... (5,003,652) (5,526,321) (1,940,146) (2,152,510) (3,679,542) (3,833,260)
Class C ............................... (1,046) -- (791) (274) (10,959) (1,806)
Class D ............................... (67,649) (78,637) (17,744) (19,655) (108,153) (107,269)
Net realized gain on investments:
Class A ............................... (602,066) (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 ......................... (5,685,349) (7,121,289) (2,006,626) (2,915,715) (3,850,188) (6,029,073)
----------- ------------ ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ........ 2,589,230 3,756,676 987,188 1,479,059 4,905,977 7,652,890
Investment of dividends .................. 3,263,649 3,721,959 915,702 1,107,523 2,165,648 2,390,775
Exchanged from associated Funds .......... 362,609 827,963 165,993 521,150 3,675,365 5,429,214
Shares issued in payment of
gain distributions .................... 484,427 1,216,730 30,882 492,702 42,076 1,677,700
----------- ------------ ----------- ----------- ----------- -----------
Total .................................... 6,699,915 9,523,328 2,099,765 3,600,434 10,789,066 17,150,579
----------- ------------ ----------- ----------- ----------- -----------
Cost of shares repurchased ............... (17,122,460) (11,554,954) (6,753,674) (5,000,231) (9,380,199) (8,097,861)
Exchanged into associated Funds .......... (1,898,546) (998,565) (861,607) (275,964) (9,360,014) (6,823,431)
----------- ------------ ----------- ----------- ----------- -----------
Total .................................... (19,021,006) (12,553,519) (7,615,281) (5,276,195) (18,740,213) (14,921,292)
----------- ------------ ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS ....... (12,321,091) (3,030,191) (5,515,516) (1,675,761) (7,951,147) 2,229,287
----------- ------------ ----------- ----------- ----------- -----------
DECREASE IN NET ASSETS ................... (12,894,505) (12,455,186) (5,204,053) (6,292,179) (7,320,773) (7,137,987)
NET ASSETS:
Beginning of year ........................ 111,021,324 123,476,510 44,075,234 50,367,413 79,865,596 87,003,583
----------- ------------ ----------- ----------- ----------- -----------
END OF YEAR .............................. $98,126,819 $111,021,324 $38,871,181 $44,075,234 $72,544,823 $79,865,596
=========== ============ =========== =========== =========== ===========
</TABLE>
----------
See Notes to Financial Statements.
42
<PAGE>
<TABLE>
<CAPTION>
OHIO SERIES OREGON SERIES SOUTH CAROLINA SERIES
------------------------------- ------------------------------ ------------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------------- ------------------------------ ------------------------------
2000 1999 2000 1999 2000 1999
------------ ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
$ 6,734,357 $ 7,061,807 $ 2,625,408 $ 2,678,187 $ 4,496,330 $ 4,992,646
(12,277) 297,271 173,315 383,853 105,545 969,149
237,548 (11,188,018) 84,672 (4,304,261) 376,387 (9,667,415)
------------ ------------ ----------- ----------- ----------- -----------
6,959,628 (3,828,940) 2,883,395 (1,242,221) 4,978,262 (3,705,620)
------------ ------------ ----------- ----------- ----------- -----------
(6,677,399) (7,006,935) (2,535,652) (2,584,867) (4,252,545) (4,761,901)
(4,727) (117) (3,604) -- (27,289) (3,556)
(52,231) (54,755) (86,152) (93,320) (216,496) (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)
------------ ------------ ----------- ----------- ----------- -----------
(7,070,692) (9,492,747) (3,015,788) (3,053,716) (5,459,268) (5,872,406)
------------ ------------ ----------- ----------- ----------- -----------
4,837,731 3,574,358 3,839,471 5,650,520 3,510,429 5,997,523
3,863,066 4,309,497 1,620,118 1,700,123 2,420,995 2,859,370
630,928 1,299,228 1,216,015 1,106,856 262,452 364,330
252,161 1,836,174 301,664 293,110 757,441 700,269
------------ ------------ ----------- ----------- ----------- -----------
9,583,886 11,019,257 6,977,268 8,750,609 6,951,317 9,921,492
------------ ------------ ----------- ----------- ----------- -----------
(12,919,249) (14,258,117) (6,232,623) (6,217,621) (16,454,085) (12,479,379)
(2,921,253) (1,290,220) (1,597,120) (1,784,796) (2,606,083) (721,823)
------------ ------------ ----------- ----------- ----------- -----------
(15,840,502) (15,548,337) (7,829,743) (8,002,417) (19,060,168) (13,201,202)
------------ ------------ ----------- ----------- ----------- -----------
(6,256,616) (4,529,080) (852,475) 748,192 (12,108,851) (3,279,710)
------------ ------------ ----------- ----------- ----------- -----------
(6,367,680) (17,850,767) (984,868) (3,547,745) (12,589,857) (12,857,736)
136,378,726 154,229,493 56,703,781 60,251,526 99,064,285 111,922,021
------------ ------------ ----------- ----------- ----------- -----------
$130,011,046 $136,378,726 $55,718,913 $56,703,781 $86,474,428 $99,064,285
============ ============ =========== =========== =========== ===========
</TABLE>
43
<PAGE>
This Page Intentionally Left Blank.
44
<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 year ended September 30, 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 values per share of any Series of the Fund.
3. PURCHASES AND SALES OF SECURITIES -- Purchases and sales of portfolio
securities, excluding short-term investments, for the year ended September 30,
2000, were as follows:
SERIES PURCHASES SALES
-------------- ------------- --------------
National $ 5,990,480 $11,081,680
Colorado 3,535,704 9,952,376
Georgia 3,901,700 9,365,651
Louisiana -- 3,987,815
Maryland 4,728,739 5,293,955
Massachusetts 19,382,775 29,271,658
Michigan 9,259,495 15,856,295
Minnesota 12,494,938 24,168,820
Missouri 2,390,010 7,160,050
New York 5,278,572 13,323,459
Ohio 11,469,497 16,841,494
Oregon 8,414,050 7,728,160
South Carolina 3,102,380 15,626,098
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS
At September 30, 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 $1,299,915 $2,678,588
Colorado 603,786 1,456,741
Georgia 1,003,747 970,512
Louisiana 1,219,610 1,135,807
Maryland 1,466,232 471,730
Massachusetts 1,704,345 2,213,461
Michigan 2,996,028 1,908,627
Minnesota 2,323,404 2,798,409
Missouri 848,963 1,083,152
New York 1,590,359 1,778,054
Ohio 2,826,805 2,582,391
Oregon 1,406,086 1,270,867
South Carolina 1,323,619 2,093,302
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 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 $ 3,757 $36,030
Colorado 5,455 43,910
Georgia 6,586 52,696
Louisiana 5,710 42,287
Maryland 3,525 26,924
Massachusetts 6,405 47,371
Michigan 7,819 56,279
Minnesota 11,942 82,617
Missouri 4,182 30,007
New York 6,995 55,408
Ohio 8,024 59,762
Oregon 10,180 71,198
South Carolina 10,009 78,881
The Fund has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to distribution of its shares. Under the Plan, with
respect to Class A shares, service organizations can enter into agreements with
the Distributor and receive continuing fees of up to 0.25% on an annual basis,
payable quarterly, of the average daily net assets of the Class A shares
attributable to the particular service organizations for providing personal
services and/or the maintenance of shareholder accounts. For the year ended
September 30, 2000, the Distributor charged the Fund fees equivalent to 0.10%
per annum of the average daily net assets of Class A shares pursuant to the Plan
as follows:
SERIES SERIES
-------------- -------------
National $84,177 Minnesota $101,030
Colorado 38,750 Missouri 41,102
Georgia 39,688 New York 70,088
Louisiana 49,159 Ohio 126,325
Maryland 46,021 Oregon 52,104
Massachusetts 86,888 South Carolina 84,755
Michigan 118,792
Under the Plan, with respect to Class C and Class D shares, service
organizations can enter into agreements with the Distributor and receive
continuing fees for providing personal services and/or the maintenance of
shareholder accounts of up to 0.25% on an annual basis of the average daily net
assets of the Class C and Class D shares for which the organizations are
responsible, and fees for providing other distribution assistance of up to 0.75%
on an annual basis of such average daily net assets. Such fees are paid monthly
by the Fund to the Distributor pursuant to the Plan. For the year ended
September 30, 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 $4,558 $51,153 Minnesota $ 258 $16,763
Colorado 571 7,923 Missouri 201 4,471
Georgia 1,919 21,924 New York 2,572 25,385
Louisiana 4,864 7,921 Ohio 1,095 12,079
Maryland 1,031 23,767 Oregon 909 21,627
Massachusetts 2,318 20,380 South
Michigan 2,818 17,568 Carolina 6,642 52,705
The Distributor is entitled to retain any CDSC imposed on certain
redemptions of Class A and Class C shares occurring within 18 months of purchase
and on redemptions of Class D shares occurring within one year after purchase.
For the year ended September 30, 2000, such charges were as follows:
46
<PAGE>
Notes to Financial Statements
SERIES SERIES
------------- -------------
National $ 3,472 Minnesota $ 218
Colorado 574 Missouri 193
Georgia 351 New York 931
Louisiana 674 Ohio 1,797
Maryland 20 Oregon 93
Massachusetts 599 South Carolina 208
Michigan 12,596
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of shares of the Fund, as well as distribution
and service fees pursuant to the Plan. For the year ended September 30, 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 $1,125 $6,196
Colorado 4,307 2,775
Georgia 91 802
Louisiana -- 878
Maryland 3,898 1,275
Massachusetts 419 1,915
Michigan 702 2,644
Minnesota 405 2,482
Missouri -- 2,339
New York 1,838 11,374
Ohio 1,418 3,228
Oregon 9 2,874
South Carolina 2,840 5,992
Seligman Data Corp., which is owned by certain associated investment
companies, charged at cost for shareholder account services the following
amounts:
SERIES SERIES
------------- ------------
National $125,075 Minnesota $153,243
Colorado 59,912 Missouri 61,380
Georgia 61,967 New York 91,821
Louisiana 64,362 Ohio 169,869
Maryland 69,309 Oregon 75,449
Massachusetts 121,994 South Carolina 127,423
Michigan 164,505
Certain officers and directors of the Fund are officers or directors of the
Manager, the Distributor, Seligman Services, Inc., and/or Seligman Data Corp.
The Fund has a compensation agreement under which directors who receive fees
may elect to defer receiving such fees. Directors may elect to have their
deferred fees accrue interest or earn a return based on the performance of
selected Series of the Fund or other funds in the Seligman Group of Investment
Companies. Deferred fees and related accrued earnings are not deductible for
federal income tax purposes until such amounts are paid. The cost of such fees
and earnings accrued thereon is included in directors' fees and expenses, and
the accumulated balances thereof at September 30, 2000, are included in other
liabilities as follows:
SERIES SERIES
------------ -------------
National $17,362 Minnesota $15,146
Colorado 11,385 Missouri 11,396
Georgia 10,793 New York 14,954
Louisiana 12,253 Ohio 15,301
Maryland 12,250 Oregon 11,272
Massachusetts 15,067 South Carolina 11,078
Michigan 14,807
5. COMMITTED LINE OF CREDIT -- The Fund is a participant in a joint $825 million
committed line of credit that is shared by substantially all open-end 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 0.10% 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 2001, but is renewable annually with
the consent of the participating banks.
On September 29, 2000, the Colorado Series and Massachusetts Series borrowed
$750,000 and $3,000,000, respectively, from the credit facility at an interest
rate of 7.25%. All loans were repaid on October 11, 2000. There were no other
borrowings during the year ended September 30, 2000.
6. CAPITAL LOSS CARRYFORWARD -- At September 30, 2000, the National and Colorado
Series had net capital loss carryforwards for federal income tax purposes of
$1,151,531 and $13,339, respectively, which are available for offset against
future taxable net capital gains, expiring in various amounts through 2008.
Accordingly, no capital gain distributions are expected to be paid to
shareholders of these Series until net capital gains have been realized in
excess of the available capital loss carryforwards.
47
<PAGE>
Notes to Financial Statements
7. CAPITAL STOCK TRANSACTIONS -- The Fund has 1,300,000,000 shares of Capital
Stock authorized. At September 30, 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
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
NATIONAL SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 862,009 $ 6,454,145 522,795 $ 4,248,236
Investment of dividends .................................. 326,239 2,453,856 326,477 2,639,265
Exchanged from associated Funds .......................... 2,966,631 22,203,528 2,035,910 16,425,324
Shares issued in payment of gain distributions ........... -- -- -- --
------------ ------------ ------------ ------------
Total .................................................... 4,154,879 31,111,529 2,885,182 23,312,825
------------ ------------ ------------ ------------
Shares repurchased ....................................... (1,365,666) (10,229,474) (1,251,160) (10,091,427)
Exchanged into associated Funds .......................... (3,107,667) (23,350,721) (2,125,455) (17,090,673)
------------ ------------ ------------ ------------
Total .................................................... (4,473,333) (33,580,195) (3,376,615) (27,182,100)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (318,454) $ (2,468,666) (491,433) $ (3,869,275)
============ ============ ============ ============
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
COLORADO SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 260,127 $ 1,811,376 446,957 $ 3,319,830
Investment of dividends .................................. 147,514 1,019,955 165,388 1,232,318
Exchanged from associated Funds .......................... 525,198 3,584,491 909,439 6,824,823
Shares issued in payment of gain distributions ........... 31,384 218,746 -- --
------------ ------------ ------------ ------------
Total .................................................... 964,223 6,634,568 1,521,784 11,376,971
------------ ------------ ------------ ------------
Shares repurchased ....................................... (1,236,204) (8,527,611) (555,222) (4,113,017)
Exchanged into associated Funds .......................... (701,365) (4,874,985) (642,500) (4,774,441)
------------ ------------ ------------ ------------
Total .................................................... (1,937,569) (13,402,596) (1,197,722) (8,887,458)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (973,346) $ (6,768,028) 324,062 $ 2,489,513
============ ============ ============ ============
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
GEORGIA SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 327,381 $ 2,454,778 316,556 $ 2,581,779
Investment of dividends .................................. 137,130 1,024,335 169,142 1,378,731
Exchanged from associated Funds .......................... 17,103 130,342 107,712 888,905
Shares issued in payment of gain distributions ........... 98,005 734,060 24,233 200,164
------------ ------------ ------------ ------------
Total .................................................... 579,619 4,343,515 617,643 5,049,579
------------ ------------ ------------ ------------
Shares repurchased ....................................... (1,072,855) (7,994,410) (809,338) (6,556,764)
Exchanged into associated Funds .......................... (118,160) (872,408) (75,068) (609,761)
------------ ------------ ------------ ------------
Total .................................................... (1,191,015) (8,866,818) (884,406) (7,166,525)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (611,396) $ (4,523,303) (266,763) $ (2,116,946)
============ ============ ============ ============
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
LOUISIANA SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 222,471 $ 1,706,130 286,860 $ 2,335,829
Investment of dividends .................................. 134,623 1,030,330 153,834 1,263,489
Exchanged from associated Funds .......................... 11,641 87,683 8,079 67,137
Shares issued in payment of gain distributions ........... 26,416 202,874 58,865 490,938
------------ ------------ ------------ ------------
Total .................................................... 395,151 3,027,017 507,638 4,157,393
------------ ------------ ------------ ------------
Shares repurchased ....................................... (902,304) (6,889,561) (496,701) (4,067,199)
Exchanged into associated Funds .......................... (60,363) (459,173) (27,551) (224,567)
------------ ------------ ------------ ------------
Total .................................................... (962,667) (7,348,734) (524,252) (4,291,766)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (567,516) $ (4,321,717) (16,614) $ (134,373)
============ ============ ============ ============
</TABLE>
48
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS D
------------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
------------------------------------------------------------ ------------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
--------------------------- --------------------------- --------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
108,959 $ 827,096 14,919 $ 118,601 19,712 $ 147,630 123,246 $ 1,007,356
1,395 10,521 77 594 14,373 107,647 21,570 173,587
41,325 313,326 -- -- 334,493 2,506,819 697,233 5,637,065
-- -- -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
151,679 1,150,943 14,996 119,195 368,578 2,762,096 842,049 6,818,008
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(41) (309) -- -- (269,101) (2,012,639) (209,777) (1,694,433)
(28,695) (215,917) -- -- (650,485) (4,842,048) (468,791) (3,866,250)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(28,736) (216,226) -- -- (919,586) (6,854,687) (678,568) (5,560,683)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
122,943 $ 934,717 14,996 $ 119,195 (551,008) $(4,092,591) 163,481 $ 1,257,325
========== ========== ========== ========== ========== =========== ========== ===========
<CAPTION>
CLASS D
------------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
------------------------------------------------------------ ------------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
--------------------------- --------------------------- --------------------------- ---------------------------
SHARES Amount Shares Amount SHARES Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
5,965 $ 40,283 28,937 $ 209,488 3,125 $ 21,531 54,407 $ 409,646
139 965 40 290 753 5,198 2,384 17,858
7,143 47,856 -- -- 4,116 28,071 41,999 318,470
60 418 -- -- 192 1,336 -- --
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
13,307 89,522 28,977 209,778 8,186 56,136 98,790 745,974
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(3,824) (26,604) (6,956) (49,460) (17,360) (121,390) (1,952) (14,492)
(7,095) (48,177) (13,536) (97,324) (48,238) (339,189) (12,506) (94,848)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(10,919) (74,781) (20,492) (146,784) (65,598) (460,579) (14,458) (109,340)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
2,388 $ 14,741 8,485 $ 62,994 (57,412) $ (404,443) 84,332 $ 636,634
========== ========== ========== ========== ========== =========== ========== ===========
<CAPTION>
CLASS D
------------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
------------------------------------------------------------ ------------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
--------------------------- --------------------------- --------------------------- ---------------------------
SHARES Amount Shares Amount SHARES Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
7,913 $ 59,838 22,407 $ 180,954 31,921 $ 238,308 60,850 $ 503,915
1,021 7,651 212 1,669 5,656 42,299 9,056 74,089
-- -- -- -- 4,314 32,541 6,834 56,261
523 3,925 -- -- 4,462 33,506 1,562 12,933
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
9,457 71,414 22,619 182,623 46,353 346,654 78,302 647,198
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(1) (8) -- -- (51,910) (386,084) (104,845) (853,647)
-- -- -- -- (14,985) (111,564) (9,346) (77,176)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(1) (8) -- -- (66,895) (497,648) (114,191) (930,823)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
9,456 $ 71,406 22,619 $ 182,623 (20,542) $ (150,994) (35,889) $ (283,625)
========== ========== ========== ========== ========== =========== ========== ===========
<CAPTION>
CLASS D
------------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
------------------------------------------------------------ ------------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
--------------------------- --------------------------- --------------------------- ---------------------------
SHARES Amount Shares Amount SHARES Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
79,875 $ 608,790 1 $ 8 2,545 $ 19,487 36,897 $ 303,293
2,540 19,444 -- -- 1,371 10,478 2,320 19,102
-- -- -- -- -- -- 1,465 12,220
237 1,820 -- -- 215 1,646 944 7,862
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
82,652 630,054 1 8 4,131 31,611 41,626 342,477
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(8,205) (61,372) -- -- (21,742) (164,746) (23,790) (197,294)
-- -- -- -- (6,313) (47,591) -- --
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(8,205) (61,372) -- -- (28,055) (212,337) (23,790) (197,294)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
74,447 $ 568,682 1 $ 8 (23,924) $ (180,726) 17,836 $ 145,183
========== ========== ========== ========== ========== =========== ========== ===========
</TABLE>
* Commencement of offering of Class C shares.
49
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
MARYLAND SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 381,437 $ 2,963,254 219,835 $ 1,796,871
Investment of dividends .................................. 171,705 1,317,084 185,215 1,505,823
Exchanged from associated Funds .......................... 71,972 551,580 31,342 253,207
Shares issued in payment of gain distributions ........... 2,416 18,654 16,816 138,396
------------ ------------ ------------ ------------
Total .................................................... 627,530 4,850,572 453,208 3,694,297
------------ ------------ ------------ ------------
Shares repurchased ....................................... (763,161) (5,846,859) (666,448) (5,412,629)
Exchanged into associated Funds .......................... (52,255) (399,171) (29,780) (241,553)
------------ ------------ ------------ ------------
Total .................................................... (815,416) (6,246,030) (696,228) (5,654,182)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (187,886) $ (1,395,458) (243,020) $ (1,959,885)
============ ============ ============ ============
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
MASSACHUSETTS SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 189,809 $ 1,388,902 394,021 $ 3,161,511
Investment of dividends .................................. 352,048 2,573,100 346,377 2,758,847
Exchanged from associated Funds .......................... 2,011,353 14,446,399 2,678,695 21,337,252
Shares issued in payment of gain distributions ........... 71,399 525,499 56,744 460,197
------------ ------------ ------------ ------------
Total .................................................... 2,624,609 18,933,900 3,475,837 27,717,807
------------ ------------ ------------ ------------
Shares repurchased ....................................... (2,010,590) (14,668,979) (1,208,459) (9,620,904)
Exchanged into associated Funds .......................... (2,161,563) (15,837,196) (3,050,731) (24,293,627)
------------ ------------ ------------ ------------
Total .................................................... (4,172,153) (30,506,175) (4,259,190) (33,914,531)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (1,547,544) $(11,572,275) (783,353) $ (6,196,724)
============ ============ ============ ============
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
MICHIGAN SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 466,986 $ 3,703,489 566,910 $ 4,817,469
Investment of dividends .................................. 434,864 3,464,973 460,956 3,901,810
Exchanged from associated Funds .......................... 117,013 934,318 61,998 530,458
Shares issued in payment of gain distributions ........... 45,931 367,908 221,134 1,897,325
------------ ------------ ------------ ------------
Total .................................................... 1,064,794 8,470,688 1,310,998 11,147,062
------------ ------------ ------------ ------------
Shares repurchased ....................................... (1,841,577) (14,636,735) (1,838,104) (15,497,098)
Exchanged into associated Funds .......................... (374,454) (2,949,421) (192,577) (1,646,007)
------------ ------------ ------------ ------------
Total .................................................... (2,216,031) (17,586,156) (2,030,681) (17,143,105)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (1,151,237) $ (9,115,468) (719,683) $ (5,996,043)
============ ============ ============ ============
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
MINNESOTA SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 343,071 $ 2,471,221 448,156 $ 3,467,423
Investment of dividends .................................. 447,659 3,229,518 475,864 3,675,004
Exchanged from associated Funds .......................... 41,489 302,437 79,497 621,391
Shares issued in payment of gain distributions ........... 65,604 476,943 153,173 1,196,281
------------ ------------ ------------ ------------
Total .................................................... 897,823 6,480,119 1,156,690 8,960,099
------------ ------------ ------------ ------------
Shares repurchased ....................................... (2,333,229) (16,828,778) (1,415,157) (10,904,586)
Exchanged into associated Funds .......................... (248,181) (1,779,398) (131,646) (998,565)
------------ ------------ ------------ ------------
Total .................................................... (2,581,410) (18,608,176) (1,546,803) (11,903,151)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (1,683,587) $(12,128,057) (390,113) $ (2,943,052)
============ ============ ============ ============
</TABLE>
50
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS D
-----------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
---------------------------------------------------------- -----------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
-------------------------- --------------------------- -------------------------- ---------------------------
SHARES Amount Shares Amount SHARES Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
10,944 $ 85,126 9,572 $ 76,445 10,842 $ 82,891 59,308 $ 487,229
148 1,142 1 8 9,130 70,086 12,056 98,236
-- -- -- -- 797 6,000 6,029 49,773
-- -- -- -- 146 1,130 1,266 10,428
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
11,092 86,268 9,573 76,453 20,915 160,107 78,659 645,666
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(1) (8) -- -- (89,695) (684,940) (92,244) (753,873)
-- -- -- -- (7,688) (59,143) (6,195) (49,882)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(1) (8) -- -- (97,383) (744,083) (98,439) (803,755)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
11,091 $ 86,260 9,573 $ 76,453 (76,468) $ (583,976) (19,780) $ (158,089)
========== ========== ========== ========== ========== =========== ========== ===========
<CAPTION>
CLASS D
-----------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
------------------------------------------------------------ -----------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
--------------------------- --------------------------- -------------------------- ---------------------------
SHARES Amount Shares Amount SHARES Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
14,596 $ 108,613 30,519 $ 233,167 1,245 $ 9,072 144,406 $ 1,169,254
863 6,292 14 103 5,680 41,234 6,391 50,273
18,434 134,362 21 157 4,060 30,178 166,950 1,348,159
113 831 -- -- 1,803 13,249 648 5,256
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
34,006 250,098 30,554 233,427 12,788 93,733 318,395 2,572,942
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(1) (7) -- -- (53,420) (389,818) (78,032) (613,957)
(26,734) (197,493) -- -- (160,196) (1,159,035) (25,100) (197,221)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(26,735) (197,500) -- -- (213,616) (1,548,853) (103,132) (811,178)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
7,271 $ 52,598 30,554 $ 233,427 (200,828) $(1,455,120) 215,263 $ 1,761,764
========== ========== ========== ========== ========== =========== ========== ===========
<CAPTION>
CLASS D
-----------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
------------------------------------------------------------ -----------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
--------------------------- --------------------------- -------------------------- ---------------------------
SHARES Amount Shares Amount SHARES Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
29,469 $ 235,421 14,221 $ 116,801 71,263 $ 566,472 90,158 $ 772,545
264 2,103 28 226 4,821 38,295 7,291 61,648
-- -- -- -- 8,601 68,205 34,906 305,268
26 212 -- -- 717 5,733 3,830 32,823
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
29,759 237,736 14,249 117,027 85,402 678,705 136,185 1,172,284
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(1) (8) -- -- (101,727) (799,346) (86,833) (719,396)
-- -- -- -- (43,748) (349,413) -- --
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(1) (8) -- -- (145,475) (1,148,759) (86,833) (719,396)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
29,758 $ 237,728 14,249 $ 117,027 (60,073) $ (470,054) 49,352 $ 452,888
========== ========== ========== ========== ========== =========== ========== ===========
<CAPTION>
CLASS D
-----------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
------------------------------------------------------------ -----------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
--------------------------- --------------------------- -------------------------- ---------------------------
SHARES Amount Shares Amount SHARES Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
6,967 $ 49,922 1 $ 8 9,313 $ 68,087 37,069 $ 289,245
141 1,016 -- -- 4,588 33,115 6,072 46,955
-- -- -- -- 8,357 60,172 26,054 206,572
5 35 -- -- 1,025 7,449 2,615 20,449
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
7,113 50,973 1 8 23,283 168,823 71,810 563,221
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(1) (7) -- -- (40,811) (293,675) (83,338) (650,368)
(3,956) (28,500) -- -- (12,637) (90,648) -- --
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(3,957) (28,507) -- -- (53,448) (384,323) (83,338) (650,368)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
3,156 $ 22,466 1 $ 8 (30,165) $ (215,500) (11,528) $ (87,147)
========== ========== ========== ========== ========== =========== ========== ===========
</TABLE>
* Commencement of offering of Class C shares.
51
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
MISSOURI SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 130,718 $ 933,414 143,714 $ 1,117,391
Investment of dividends .................................. 125,588 902,737 141,770 1,091,323
Exchanged from associated Funds .......................... 6,127 43,346 63,527 497,543
Shares issued in payment of gain distributions ........... 4,183 30,163 62,316 486,691
------------ ------------ ------------ ------------
Total .................................................... 266,616 1,909,660 411,327 3,192,948
------------ ------------ ------------ ------------
Shares repurchased ....................................... (899,785) (6,441,813) (640,800) (4,889,919)
Exchanged into associated Funds .......................... (96,932) (690,603) (33,222) (255,281)
------------ ------------ ------------ ------------
Total .................................................... (996,717) (7,132,416) (674,022) (5,145,200)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (730,101) $ (5,222,756) (262,695) $ (1,952,252)
============ ============ ============ ============
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
NEW YORK SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 598,057 $ 4,529,204 802,995 $ 6,593,637
Investment of dividends .................................. 278,406 2,113,607 284,109 2,315,942
Exchanged from associated Funds .......................... 448,275 3,380,112 589,737 4,819,554
Shares issued in payment of gain distributions ........... 5,397 41,071 196,696 1,630,608
------------ ------------ ------------ ------------
Total .................................................... 1,330,135 10,063,994 1,873,537 15,359,741
------------ ------------ ------------ ------------
Shares repurchased ....................................... (1,169,212) (8,853,545) (952,833) (7,728,238)
Exchanged into associated Funds .......................... (1,197,493) (9,099,703) (803,766) (6,577,087)
------------ ------------ ------------ ------------
Total .................................................... (2,366,705) (17,953,248) (1,756,599) (14,305,325)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (1,036,570) $ (7,889,254) 116,938 $ 1,054,416
============ ============ ============ ============
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
OHIO SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 549,134 $ 4,181,871 361,672 $ 2,918,252
Investment of dividends .................................. 508,734 3,820,471 530,982 4,266,794
Exchanged from associated Funds .......................... 51,377 381,824 134,140 1,074,172
Shares issued in payment of gain distributions ........... 33,096 249,874 223,380 1,820,544
------------ ------------ ------------ ------------
Total .................................................... 1,142,341 8,634,040 1,250,174 10,079,762
------------ ------------ ------------ ------------
Shares repurchased ....................................... (1,674,345) (12,530,354) (1,741,673) (13,920,913)
Exchanged into associated Funds .......................... (356,179) (2,663,134) (131,868) (1,057,828)
------------ ------------ ------------ ------------
Total .................................................... (2,030,524) (15,193,488) (1,873,541) (14,978,741)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (888,183) $ (6,559,448) (623,367) $ (4,898,979)
============ ============ ============ ============
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
OREGON SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 439,717 $ 3,246,798 679,526 $ 5,340,535
Investment of dividends .................................. 214,472 1,573,661 209,299 1,637,871
Exchanged from associated Funds .......................... 53,745 388,928 130,494 1,028,496
Shares issued in payment of gain distributions ........... 39,867 293,823 35,501 281,167
------------ ------------ ------------ ------------
Total .................................................... 747,801 5,503,210 1,054,820 8,288,069
------------ ------------ ------------ ------------
Shares repurchased ....................................... (794,009) (5,822,585) (706,461) (5,517,373)
Exchanged into associated Funds .......................... (155,662) (1,135,963) (226,571) (1,784,105)
------------ ------------ ------------ ------------
Total .................................................... (949,671) (6,958,548) (933,032) (7,301,478)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (201,870) $ (1,455,338) 121,788 $ 986,591
============ ============ ============ ============
</TABLE>
52
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS D
-----------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
---------------------------------------------------------- -----------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
-------------------------- --------------------------- -------------------------- ---------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
-- -- 2,887 $ 21,877 7,451 $ 53,774 43,815 $ 339,791
57 $ 409 27 202 1,755 12,556 2,082 15,998
-- -- -- -- 17,129 122,647 2,979 23,607
3 23 -- -- 97 696 770 6,011
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
60 432 2,914 22,079 26,432 189,673 49,646 385,407
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(1) (7) -- -- (43,651) (311,854) (14,354) (110,312)
-- -- -- -- (23,925) (171,004) (2,657) (20,683)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(1) (7) -- -- (67,576) (482,858) (17,011) (130,995)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
59 $ 425 2,914 $ 22,079 (41,144) $ (293,185) 32,635 $ 254,412
========== ========== ========== ========== ========== =========== ========== ===========
<CAPTION>
CLASS D
-----------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
---------------------------------------------------------- -----------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
-------------------------- --------------------------- -------------------------- ---------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
33,053 $ 255,390 35,036 $ 278,217 16,090 $ 121,383 94,489 $ 781,036
480 3,650 83 644 6,368 48,391 9,087 74,189
-- -- -- -- 38,864 295,253 72,704 609,660
12 92 -- -- 120 913 5,681 47,092
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
33,545 259,132 35,119 278,861 61,442 465,940 181,961 1,511,977
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(6,433) (48,128) (5,721) (45,709) (63,171) (478,526) (39,787) (323,914)
-- -- (4,833) (37,500) (34,171) (260,311) (26,500) (208,844)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(6,433) (48,128) (10,554) (83,209) (97,342) (738,837) (66,287) (532,758)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
27,112 $ 211,004 24,565 $ 195,652 (35,900) $ (272,897) 115,674 $ 979,219
========== ========== ========== ========== ========== =========== ========== ===========
<CAPTION>
CLASS D
-----------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
---------------------------------------------------------- -----------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
-------------------------- --------------------------- -------------------------- ---------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
28,323 $ 213,806 2,248 $ 17,828 58,171 $ 442,054 78,121 $ 638,278
547 4,170 13 95 5,088 38,425 5,281 42,608
-- -- -- -- 33,572 249,104 27,382 225,056
-- -- -- -- 301 2,287 1,911 15,630
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
28,870 217,976 2,261 17,923 97,132 731,870 112,695 921,572
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(2,267) (17,228) -- -- (49,488) (371,667) (42,299) (337,204)
-- -- -- -- (35,081) (258,119) (28,756) (232,392)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(2,267) (17,228) -- -- (84,569) (629,786) (71,055) (569,596)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
26,603 $ 200,748 2,261 $ 17,923 12,563 $ 102,084 41,640 $ 351,976
========== ========== ========== ========== ========== =========== ========== ===========
<CAPTION>
CLASS D
-----------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
---------------------------------------------------------- -----------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
-------------------------- --------------------------- -------------------------- ---------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
48,313 $ 357,056 1 $ 8 31,627 $ 235,617 39,323 $ 309,977
416 3,118 -- -- 5,906 43,339 7,942 62,252
-- -- -- -- 111,813 827,087 9,849 78,360
-- -- -- -- 1,064 7,841 1,508 11,943
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
48,729 360,174 1 8 150,410 1,113,884 58,622 462,532
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
-- -- -- -- (55,678) (410,038) (89,753) (700,248)
-- -- -- -- (62,957) (461,157) (87) (691)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
-- -- -- -- (118,635) (871,195) (89,840) (700,939)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
48,729 $ 360,174 1 $ 8 31,775 $ 242,689 (31,218) $ (238,407)
========== ========== ========== ========== ========== =========== ========== ===========
</TABLE>
* Commencement of offering of Class C shares.
53
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000 1999
----------------------------- -----------------------------
SOUTH CAROLINA SERIES SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales of shares .......................................... 347,250 $ 2,615,446 495,837 $ 4,009,453
Investment of dividends .................................. 302,518 2,264,599 333,372 2,699,308
Exchanged from associated Funds .......................... 24,539 179,859 39,056 319,755
Shares issued in payment of gain distributions ........... 95,104 715,184 80,358 661,343
------------ ------------ ------------ ------------
Total .................................................... 769,411 5,775,088 948,623 7,689,859
------------ ------------ ------------ ------------
Shares repurchased ....................................... (1,946,151) (14,520,234) (1,450,098) (11,588,440)
Exchanged into associated Funds .......................... (332,862) (2,462,541) (76,691) (620,953)
------------ ------------ ------------ ------------
Total .................................................... (2,279,013) (16,982,775) (1,526,789) (12,209,393)
------------ ------------ ------------ ------------
Increase (decrease) ...................................... (1,509,602) $(11,207,687) (578,166) $ (4,519,534)
============ ============ ============ ============
</TABLE>
54
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CLASS D
-----------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30,
---------------------------------------------------------- -----------------------------------------------------------
YEAR ENDED 5/27/99* To
9/30/00 9/30/99 2000 1999
-------------------------- --------------------------- -------------------------- ---------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
79,797 $ 600,169 43,342 $ 344,052 39,584 $ 294,814 201,377 $ 1,644,018
3,534 26,483 403 3,128 17,387 129,913 19,414 156,934
-- -- -- -- 11,020 82,593 5,412 44,575
444 3,335 -- -- 5,183 38,922 4,735 38,926
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
83,775 629,987 43,745 347,180 73,174 546,242 230,938 1,884,453
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(1) (8) -- -- (258,835) (1,933,843) (111,023) (890,939)
(10,771) (81,000) -- -- (8,551) (62,542) (12,742) (100,870)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
(10,772) (81,008) -- -- (267,386) (1,996,385) (123,765) (991,809)
---------- ---------- ---------- ---------- ---------- ----------- ---------- -----------
73,003 $ 548,979 43,745 $ 347,180 (194,212) $(1,450,143) 107,173 $ 892,644
========== ========== ========== ========== ========== =========== ========== ===========
</TABLE>
* Commencement of offering of Class C shares.
55
<PAGE>
FINANCIAL HIGHLIGHTS
The tables below are intended to help you understand the financial
performance of each Class of each Series for the past five years or from its
inception if less than five years. Certain information reflects financial
results for a single share of a Class that was held throughout the periods
shown. Per share amounts are calculated using average shares outstanding during
the period. "Total return" shows the rate that you would have earned (or lost)
on an investment in each Class, assuming you reinvested all your dividends and
capital gain distributions. Total returns do not reflect any sales charges and
are not annualized for periods of less than one year.
NATIONAL SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.68 $ 8.08
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.39 0.39 0.39 0.39 0.40 0.32 0.11
Net realized and unrealized gain (loss)
on investments ............................. (0.03) (0.64) 0.31 0.31 0.12 (0.03) (0.40)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.36 (0.25) 0.70 0.70 0.52 0.29 (0.29)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.39) (0.39) (0.39) (0.39) (0.40) (0.32) (0.11)
Distributions from net realized capital gain . -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.39) (0.39) (0.39) (0.39) (0.40) (0.32) (0.11)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.65 $ 7.68 $ 8.32 $ 8.01 $ 7.70 $ 7.65 $ 7.68
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 4.88% (3.11)% 9.00% 9.40% 6.97% 3.94% (3.38)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $ 87,583 $ 90,296 $101,909 $ 97,481 $ 98,767 $ 1,056 $ 115
Ratio of expenses to average net assets ...... 0.87% 0.83% 0.80% 0.84% 0.80% 1.77% 1.74%+
Ratio of net income to average net assets .... 5.18% 4.83% 4.82% 5.05% 5.19% 4.28% 4.10%+
Portfolio turnover rate ...................... 6.54% 13.37% 18.00% 20.63% 33.99% 6.54% 13.37%++
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Data:
Net Asset Value, Beginning of Year ........... $ 7.68 $ 8.31 $ 8.02 $ 7.70 $ 7.57
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.32 0.32 0.32 0.32 0.33
Net realized and unrealized gain (loss)
on investments ............................. (0.03) (0.63) 0.29 0.32 0.13
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.29 (0.31) 0.61 0.64 0.46
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.32) (0.32) (0.32) (0.32) (0.33)
Distributions from net realized capital gain . -- -- -- -- --
-------- -------- -------- -------- --------
Total Distributions .......................... (0.32) (0.32) (0.32) (0.32) (0.33)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.65 $ 7.68 $ 8.31 $ 8.02 $ 7.70
======== ======== ======== ======== ========
Total Return: ................................ 3.94% (3.85)% 7.76% 8.56% 6.13%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 3,839 $ 8,079 $ 7,392 $ 2,279 $ 4,826
Ratio of expenses to average net assets ...... 1.77% 1.73% 1.71% 1.75% 1.67%
Ratio of net income to average net assets .... 4.28% 3.93% 3.91% 4.15% 4.27%
Portfolio turnover rate ...................... 6.54% 13.37% 18.00% 20.63% 33.99%
</TABLE>
----------
See footnotes on page 68.
56
<PAGE>
FINANCIAL HIGHLIGHTS
COLORADO SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.47
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.35 0.34 0.36 0.37 0.37 0.28 0.10
Net realized and unrealized gain (loss)
on investments ............................. (0.03) (0.54) 0.22 0.15 (0.03) (0.02) (0.38)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.32 (0.20) 0.58 0.52 0.34 0.26 (0.28)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.35) (0.34) (0.36) (0.37) (0.37) (0.28) (0.10)
Distributions from net realized capital gain . (0.05) -- -- -- -- (0.05) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.40) (0.34) (0.36) (0.37) (0.37) (0.33) (0.10)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.02 $ 7.10 $ 7.64 $ 7.42 $ 7.27 $ 7.02 $ 7.09
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 4.64% (2.67)% 8.03% 7.30% 4.76% 3.86% (3.93)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $ 37,358 $ 44,649 $ 45,583 $ 49,780 $ 52,295 $ 76 $ 60
Ratio of expenses to average net assets ...... 0.91% 0.87% 0.90% 0.90% 0.85% 1.81% 1.73%+
Ratio of net income to average net assets .... 4.99% 4.60% 4.80% 5.01% 5.07% 4.09% 3.85%+
Portfolio turnover rate ...................... 8.81% 7.91% 28.66% 3.99% 12.39% 8.81% 7.91%++
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 7.09 $ 7.63 $ 7.42 $ 7.27 $ 7.29
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.28 0.28 0.29 0.30 0.31
Net realized and unrealized gain (loss)
on investments ............................. (0.02) (0.54) 0.21 0.15 (0.02)
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.26 (0.26) 0.50 0.45 0.29
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.28) (0.28) (0.29) (0.30) (0.31)
Distributions from net realized capital gain . (0.05) -- -- -- --
-------- -------- -------- -------- --------
Total Distributions .......................... (0.33) (0.28) (0.29) (0.30) (0.31)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.02 $ 7.09 $ 7.63 $ 7.42 $ 7.27
======== ======== ======== ======== ========
Total Return: ................................ 3.86% (3.57)% 6.90% 6.34% 3.95%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 505 $ 917 $ 344 $ 238 $ 255
Ratio of expenses to average net assets ...... 1.81% 1.77% 1.80% 1.81% 1.75%
Ratio of net income to average net assets .... 4.09% 3.70% 3.90% 4.10% 4.17%
Portfolio turnover rate ...................... 8.81% 7.91% 28.66% 3.99% 12.39%
</TABLE>
----------
See footnotes on page 68.
57
<PAGE>
FINANCIAL HIGHLIGHTS
GEORGIA SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.76 $ 8.17
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.37 0.37 0.38 0.38 0.39 0.30 0.11
Net realized and unrealized gain (loss)
on investments ............................. 0.06 (0.58) 0.29 0.28 0.11 0.07 (0.41)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.43 (0.21) 0.67 0.66 0.50 0.37 (0.30)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.37) (0.37) (0.38) (0.38) (0.39) (0.30) (0.11)
Distributions from net realized capital gain . (0.17) (0.05) (0.03) (0.03) (0.05) (0.17) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.54) (0.42) (0.41) (0.41) (0.44) (0.47) (0.11)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.64 $ 7.75 $ 8.38 $ 8.12 $ 7.87 $ 7.66 $ 7.76
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 5.95% (2.63)% 8.44% 8.65% 6.56% 5.15% (3.84)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $ 37,423 $ 42,692 $ 48,424 $ 50,614 $ 50,995 $ 246 $ 176
Ratio of expenses to average net assets ...... 0.91% 0.87% 0.89% 0.89% 0.83% 1.81% 1.74%+
Ratio of net income to average net assets .... 4.96% 4.59% 4.57% 4.82% 4.94% 4.06% 3.89%+
Portfolio turnover rate ...................... 9.57% 23.93% 2.92% 12.28% 16.24% 9.57% 23.93%++
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 7.76 $ 8.40 $ 8.13 $ 7.88 $ 7.82
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.30 0.30 0.30 0.31 0.32
Net realized and unrealized gain (loss)
on investments ............................. 0.07 (0.59) 0.30 0.28 0.11
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.37 (0.29) 0.60 0.59 0.43
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.30) (0.30) (0.30) (0.31) (0.32)
Distributions from net realized capital gain . (0.17) (0.05) (0.03) (0.03) (0.05)
-------- -------- -------- -------- --------
Total Distributions .......................... (0.47) (0.35) (0.33) (0.34) (0.37)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.66 $ 7.76 $ 8.40 $ 8.13 $ 7.88
======== ======== ======== ======== ========
Total Return: ................................ 5.15% (3.61)% 7.59% 7.67% 5.60%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 2,129 $ 2,318 $ 2,809 $ 2,640 $ 2,327
Ratio of expenses to average net assets ...... 1.81% 1.77% 1.80% 1.79% 1.73%
Ratio of net income to average net assets .... 4.06% 3.69% 3.66% 3.92% 4.03%
Portfolio turnover rate ...................... 9.57% 23.93% 2.92% 12.28% 16.24%
</TABLE>
----------
See footnotes on page 68.
58
<PAGE>
FINANCIAL HIGHLIGHTS
LOUISIANA SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.80 $ 8.19
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.39 0.39 0.41 0.41 0.42 0.32 0.11
Net realized and unrealized gain (loss)
on investments ............................. 0.04 (0.59) 0.24 0.23 0.08 0.05 (0.39)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.43 (0.20) 0.65 0.64 0.50 0.37 (0.28)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.39) (0.39) (0.41) (0.41) (0.42) (0.32) (0.11)
Distributions from net realized capital gain . (0.05) (0.11) (0.01) (0.11) (0.06) (0.05) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.44) (0.50) (0.42) (0.52) (0.48) (0.37) (0.11)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.80 $ 7.81 $ 8.51 $ 8.28 $ 8.16 $ 7.80 $ 7.80
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 5.70% (2.44)% 8.08% 8.17% 6.32% 4.88% (3.55)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $ 47,099 $ 51,543 $ 56,308 $ 56,199 $ 57,264 $ 581 $--
Ratio of expenses to average net assets ...... 0.88% 0.84% 0.88% 0.86% 0.82% 1.78% 1.71%+
Ratio of net income to average net assets .... 5.10% 4.76% 4.86% 5.08% 5.15% 4.20% 4.00%+
Portfolio turnover rate ...................... -- 8.67% 15.72% 16.08% 10.08% -- 8.67%++
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 7.80 $ 8.50 $ 8.27 $ 8.16 $ 8.14
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.32 0.32 0.33 0.34 0.35
Net realized and unrealized gain (loss)
on investments ............................. 0.05 (0.59) 0.24 0.22 0.08
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.37 (0.27) 0.57 0.56 0.43
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.32) (0.32) (0.33) (0.34) (0.35)
Distributions from net realized capital gain . (0.05) (0.11) (0.01) (0.11) (0.06)
-------- -------- -------- -------- --------
Total Distributions .......................... (0.37) (0.43) (0.34) (0.45) (0.41)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.80 $ 7.80 $ 8.50 $ 8.27 $ 8.16
======== ======== ======== ======== ========
Total Return: ................................ 4.88% (3.33)% 7.11% 7.07% 5.37%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 721 $ 908 $ 837 $ 509 $ 389
Ratio of expenses to average net assets ...... 1.78% 1.74% 1.78% 1.76% 1.72%
Ratio of net income to average net assets .... 4.20% 3.86% 3.96% 4.18% 4.25%
Portfolio turnover rate ...................... -- 8.67% 15.72% 16.08% 10.08%
</TABLE>
----------
See footnotes on page 68.
59
<PAGE>
FINANCIAL HIGHLIGHTS
MARYLAND SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.80 $ 8.13
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.39 0.39 0.40 0.40 0.40 0.32 0.11
Net realized and unrealized gain (loss)
on investments ............................. -- (0.50) 0.23 0.19 0.06 -- (0.33)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.39 (0.11) 0.63 0.59 0.46 0.32 (0.22)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.39) (0.39) (0.40) (0.40) (0.40) (0.32) (0.11)
Distributions from net realized capital gain . -- (0.03) (0.05) (0.04) (0.03) -- --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.39) (0.42) (0.45) (0.44) (0.43) (0.32) (0.11)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.79 $ 7.79 $ 8.32 $ 8.14 $ 7.99 $ 7.80 $ 7.80
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 5.26% (1.45)% 7.89% 7.64% 6.00% 4.32% (2.83)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $ 48,042 $ 49,523 $ 54,891 $ 52,549 $ 54,041 $ 161 $ 75
Ratio of expenses to average net assets ...... 0.91% 0.87% 0.89% 0.90% 0.84% 1.81% 1.75%+
Ratio of net income to average net assets .... 5.10% 4.77% 4.82% 4.99% 5.05% 4.20% 4.04%+
Portfolio turnover rate ...................... 9.76% 1.80% 7.59% 14.79% 5.56% 9.76% 1.80%++
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 7.80 $ 8.33 $ 8.15 $ 7.99 $ 7.97
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.32 0.31 0.32 0.33 0.33
Net realized and unrealized gain (loss)
on investments ............................. -- (0.50) 0.23 0.20 0.05
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.32 (0.19) 0.55 0.53 0.38
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.32) (0.31) (0.32) (0.33) (0.33)
Distributions from net realized capital gain . -- (0.03) (0.05) (0.04) (0.03)
-------- -------- -------- -------- --------
Total Distributions .......................... (0.32) (0.34) (0.37) (0.37) (0.36)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.80 $ 7.80 $ 8.33 $ 8.15 $ 7.99
======== ======== ======== ======== ========
Total Return: ................................ 4.32% (2.00)% 6.91% 6.80% 4.91%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 2,179 $ 2,775 $ 3,128 $ 2,063 $ 2,047
Ratio of expenses to average net assets ...... 1.81% 1.77% 1.80% 1.81% 1.72%
Ratio of net income to average net assets .... 4.20% 3.87% 3.91% 4.08% 4.14%
Portfolio turnover rate ...................... 9.76% 1.80% 7.59% 14.79% 5.56%
</TABLE>
----------
See footnotes on page 68.
60
<PAGE>
FINANCIAL HIGHLIGHTS
MASSACHUSETTS SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.47 $ 7.96
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.36 0.36 0.38 0.40 0.41 0.29 0.10
Net realized and unrealized gain (loss)
on investments ............................. 0.07 (0.75) 0.37 0.22 0.05 0.07 (0.49)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.43 (0.39) 0.75 0.62 0.46 0.36 (0.39)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.36) (0.36) (0.38) (0.40) (0.41) (0.29) (0.10)
Distributions from net realized capital gain . (0.06) (0.05) (0.09) (0.08) (0.11) (0.06) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.42) (0.41) (0.47) (0.48) (0.52) (0.35) (0.10)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.48 $ 7.47 $ 8.27 $ 7.99 $ 7.85 $ 7.48 $ 7.47
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 5.97% (4.85)% 9.80% 8.11% 5.97% 5.01% (5.02)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $ 81,487 $ 92,929 $109,328 $110,011 $109,872 $ 283 $ 228
Ratio of expenses to average net assets ...... 0.86% 0.83% 0.80% 0.84% 0.80% 1.76% 1.73%+
Ratio of net income to average net assets .... 4.95% 4.56% 4.72% 5.06% 5.24% 4.05% 3.80%+
Portfolio turnover rate ...................... 22.46% 23.88% 13.41% 29.26% 26.30% 22.46% 23.88%++
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 7.47 $ 8.26 $ 7.99 $ 7.84 $ 7.90
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.29 0.29 0.31 0.33 0.34
Net realized and unrealized gain (loss)
on investments ............................. 0.07 (0.74) 0.36 0.23 0.05
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.36 (0.45) 0.67 0.56 0.39
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.29) (0.29) (0.31) (0.33) (0.34)
Distributions from net realized capital gain . (0.06) (0.05) (0.09) (0.08) (0.11)
-------- -------- -------- -------- --------
Total Distributions .......................... (0.35) (0.34) (0.40) (0.41) (0.45)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.48 $ 7.47 $ 8.26 $ 7.99 $ 7.84
======== ======== ======== ======== ========
Total Return: ................................ 5.01% (5.61)% 8.68% 7.29% 5.01%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 1,436 $ 2,934 $ 1,468 $ 1,245 $ 1,405
Ratio of expenses to average net assets ...... 1.76% 1.73% 1.71% 1.74% 1.70%
Ratio of net income to average net assets .... 4.05% 3.66% 3.81% 4.16% 4.32%
Portfolio turnover rate ...................... 22.46% 23.88% 13.41% 29.26% 26.30%
</TABLE>
----------
See footnotes on page 68.
61
<PAGE>
FINANCIAL HIGHLIGHTS
MICHIGAN SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 8.03 $ 8.43
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.41 0.40 0.41 0.43 0.45 0.34 0.11
Net realized and unrealized gain (loss)
on investments ............................. 0.10 (0.63) 0.30 0.23 0.06 0.10 (0.40)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.51 (0.23) 0.71 0.66 0.51 0.44 (0.29)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.41) (0.40) (0.41) (0.43) (0.45) (0.34) (0.11)
Distributions from net realized capital gain . (0.03) (0.16) (0.07) (0.09) (0.14) (0.03) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.44) (0.56) (0.48) (0.52) (0.59) (0.37) (0.11)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 8.11 $ 8.04 $ 8.83 $ 8.60 $ 8.46 $ 8.10 $ 8.03
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 6.62% (2.77)% 8.63% 8.16% 6.16% 5.68% (3.55)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $117,241 $125,560 $144,161 $143,370 $148,178 $ 356 $ 114
Ratio of expenses to average net assets ...... 0.70% 0.82% 0.79% 0.81% 0.78% 1.60% 1.73%+
Ratio of net income to average net assets .... 5.20% 4.73% 4.78% 5.13% 5.29% 4.30% 3.96%+
Portfolio turnover rate ...................... 7.80% 3.73% 23.60% 10.98% 19.62% 7.80% 3.73%++
Without expense reimbursement:*
Ratio of expenses to average net assets ...... 0.84% 1.74%
Ratio of net income to average net assets .... 5.06% 4.16%
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 8.03 $ 8.82 $ 8.59 $ 8.45 $ 8.54
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.34 0.32 0.33 0.36 0.37
Net realized and unrealized gain (loss)
on investments ............................. 0.10 (0.63) 0.30 0.23 0.05
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.44 (0.31) 0.63 0.59 0.42
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.34) (0.32) (0.33) (0.36) (0.37)
Distributions from net realized capital gain . (0.03) (0.16) (0.07) (0.09) (0.14)
-------- -------- -------- -------- --------
Total Distributions .......................... (0.37) (0.48) (0.40) (0.45) (0.51)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 8.10 $ 8.03 $ 8.82 $ 8.59 $ 8.45
======== ======== ======== ======== ========
Total Return: ................................ 5.68% (3.65)% 7.66% 7.19% 5.09%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 1,605 $ 2,074 $ 1,841 $ 1,845 $ 1,486
Ratio of expenses to average net assets ...... 1.60% 1.72% 1.70% 1.71% 1.68%
Ratio of net income to average net assets .... 4.30% 3.83% 3.87% 4.23% 4.39%
Portfolio turnover rate ...................... 7.80% 3.73% 23.60% 10.98% 19.62%
Without expense reimbursement:*
Ratio of expenses to average net assets ...... 1.74%
Ratio of net income to average net assets .... 4.16%
</TABLE>
----------
See footnotes on page 68.
62
<PAGE>
FINANCIAL HIGHLIGHTS
MINNESOTA SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.36 $ 7.72
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.36 0.36 0.38 0.40 0.42 0.29 0.10
Net realized and unrealized gain (loss)
on investments ............................. 0.02 (0.52) 0.20 0.11 (0.12) 0.02 (0.36)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.38 (0.16) 0.58 0.51 0.30 0.31 (0.26)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.36) (0.36) (0.38) (0.40) (0.42) (0.29) (0.10)
Distributions from net realized capital gain . (0.04) (0.10) (0.01) -- (0.02) (0.04) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.40) (0.46) (0.39) (0.40) (0.44) (0.33) (0.10)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.34 $ 7.36 $ 7.98 $ 7.79 $ 7.68 $ 7.34 $ 7.36
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 5.35% (2.09)% 7.68% 6.85% 3.99% 4.42% (3.47)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $ 96,475 $109,165 $121,374 $121,674 $126,173 $ 23 $--
Ratio of expenses to average net assets ...... 0.87% 0.84% 0.81% 0.85% 0.81% 1.77% 1.74%+
Ratio of net income to average net assets .... 4.95% 4.71% 4.87% 5.21% 5.47% 4.05% 3.94%+
Portfolio turnover rate ...................... 12.38% 9.74% 21.86% 6.88% 26.89% 12.38% 9.74%++
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 7.36 $ 7.98 $ 7.79 $ 7.68 $ 7.82
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.29 0.30 0.31 0.33 0.35
Net realized and unrealized gain (loss)
on investments ............................. 0.02 (0.52) 0.20 0.11 (0.12)
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.31 (0.22) 0.51 0.44 0.23
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.29) (0.30) (0.31) (0.33) (0.35)
Distributions from net realized capital gain . (0.04) (0.10) (0.01) -- (0.02)
-------- -------- -------- -------- --------
Total Distributions .......................... (0.33) (0.40) (0.32) (0.33) (0.37)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.34 $ 7.36 $ 7.98 $ 7.79 $ 7.68
======== ======== ======== ======== ========
Total Return: ................................ 4.42% (2.96)% 6.71% 5.89% 3.06%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 1,629 $ 1,856 $ 2,103 $ 1,799 $ 2,036
Ratio of expenses to average net assets ...... 1.77% 1.74% 1.72% 1.75% 1.71%
Ratio of net income to average net assets .... 4.05% 3.81% 3.96% 4.31% 4.57%
Portfolio turnover rate ...................... 12.38% 9.74% 21.86% 6.88% 26.89%
</TABLE>
----------
See footnotes on page 68.
63
<PAGE>
FINANCIAL HIGHLIGHTS
MISSOURI SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.29 $ 7.68
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.35 0.35 0.36 0.38 0.39 0.28 0.10
Net realized and unrealized gain (loss)
on investments ............................. 0.09 (0.62) 0.28 0.19 0.08 0.09 (0.39)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.44 (0.27) 0.64 0.57 0.47 0.37 (0.29)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.35) (0.35) (0.36) (0.38) (0.39) (0.28) (0.10)
Distributions from net realized capital gain . (0.01) (0.12) (0.07) (0.08) (0.07) (0.01) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.36) (0.47) (0.43) (0.46) (0.46) (0.29) (0.10)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.37 $ 7.29 $ 8.03 $ 7.82 $ 7.71 $ 7.37 $ 7.29
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 6.19% (3.58)% 8.41% 7.70% 6.27% 5.27% (3.95)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $ 38,529 $ 43,437 $ 49,949 $ 52,766 $ 49,941 $ 22 $ 21
Ratio of expenses to average net assets ...... 0.93% 0.87% 0.89% 0.89% 0.86% 1.83% 1.74%+
Ratio of net income to average net assets .... 4.83% 4.50% 4.59% 4.93% 5.03% 3.93% 3.75%+
Portfolio turnover rate ...................... 6.00% 10.43% 21.26% 6.47% 8.04% 6.00% 10.43%++
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 7.29 $ 8.03 $ 7.82 $ 7.72 $ 7.70
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.28 0.28 0.29 0.31 0.32
Net realized and unrealized gain (loss)
on investments ............................. 0.09 (0.62) 0.28 0.18 0.09
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.37 (0.34) 0.57 0.49 0.41
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.28) (0.28) (0.29) (0.31) (0.32)
Distributions from net realized capital gain . (0.01) (0.12) (0.07) (0.08) (0.07)
-------- -------- -------- -------- --------
Total Distributions .......................... (0.29) (0.40) (0.36) (0.39) (0.39)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.37 $ 7.29 $ 8.03 $ 7.82 $ 7.72
======== ======== ======== ======== ========
Total Return: ................................ 5.27% (4.46)% 7.45% 6.60% 5.46%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 321 $ 617 $ 418 $ 474 $ 565
Ratio of expenses to average net assets ...... 1.83% 1.77% 1.79% 1.80% 1.76%
Ratio of net income to average net assets .... 3.93% 3.60% 3.69% 4.02% 4.13%
Portfolio turnover rate ...................... 6.00% 10.43% 21.26% 6.47% 8.04%
</TABLE>
----------
See footnotes on page 68.
64
<PAGE>
FINANCIAL HIGHLIGHTS
NEW YORK SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.70 $ 8.14
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.39 0.38 0.40 0.41 0.42 0.32 0.11
Net realized and unrealized gain (loss)
on investments ............................. 0.08 (0.69) 0.40 0.32 0.12 0.09 (0.44)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.47 (0.31) 0.80 0.73 0.54 0.41 (0.33)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.39) (0.38) (0.40) (0.41) (0.42) (0.32) (0.11)
Distributions from net realized capital gain . (0.01) (0.21) (0.08) (0.02) -- (0.01) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.40) (0.59) (0.48) (0.43) (0.42) (0.33) (0.11)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.77 $ 7.70 $ 8.60 $ 8.28 $ 7.98 $ 7.78 $ 7.70
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 6.28% (3.86)% 10.02% 9.45% 6.97% 5.46% (4.22)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $ 69,549 $ 76,833 $ 84,822 $ 83,528 $ 82,719 $ 402 $ 189
Ratio of expenses to average net assets ...... 0.70% 0.81% 0.81% 0.82% 0.77% 1.60% 1.69%+
Ratio of net income to average net assets .... 5.17% 4.63% 4.74% 5.09% 5.24% 4.27% 3.96%+
Portfolio turnover rate ...................... 7.30% 11.85% 39.85% 23.83% 25.88% 7.30% 11.85%++
Without expense reimbursement:*
Ratio of expenses to average net assets 0.83% 1.73%
Ratio of net income to average net assets 5.04% 4.14%
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 7.70 $ 8.60 $ 8.29 $ 7.98 $ 7.87
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.32 0.30 0.32 0.34 0.34
Net realized and unrealized gain (loss)
on investments ............................. 0.09 (0.69) 0.39 0.33 0.11
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.41 (0.39) 0.71 0.67 0.45
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.32) 0.30) (0.32) (0.34) (0.34)
Distributions from net realized capital gain . (0.01) (0.21) (0.08) (0.02) --
-------- -------- -------- -------- --------
Total Distributions .......................... (0.33) (0.51) (0.40) (0.36) (0.34)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.78 $ 7.70 $ 8.60 $ 8.29 $ 7.98
======== ======== ======== ======== ========
Total Return: ................................ 5.46% (4.73)% 8.88% 8.60% 5.86%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 2,593 $ 2,844 $ 2,182 $ 1,572 $ 1,152
Ratio of expenses to average net assets ...... 1.60% 1.71% 1.72% 1.73% 1.68%
Ratio of net income to average net assets .... 4.27% 3.73% 3.83% 4.18% 4.33%
Portfolio turnover rate ...................... 7.30% 11.85% 39.85% 23.83% 25.88%
Without expense reimbursement:*
Ratio of expenses to average net assets ...... 1.73%
Ratio of net income to average net assets .... 4.14%
</TABLE>
----------
See footnotes on page 68.
65
<PAGE>
FINANCIAL HIGHLIGHTS
OHIO SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.68 $ 8.06
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.39 0.38 0.40 0.42 0.43 0.33 0.11
Net realized and unrealized gain (loss)
on investments ............................. 0.02 (0.60) 0.29 0.17 0.02 0.03 (0.38)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.41 (0.22) 0.69 0.59 0.45 0.36 (0.27)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.39) (0.38) (0.40) (0.42) (0.43) (0.33) (0.11)
Distributions from net realized capital gain . (0.02) (0.13) (0.11) (0.07) (0.04) (0.02) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.41) (0.51) (0.51) (0.49) (0.47) (0.35) (0.11)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.64 $ 7.64 $ 8.37 $ 8.19 $ 8.09 $ 7.69 $ 7.68
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 5.58% (2.68)% 8.77% 7.54% 5.68% 4.78% (3.51)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $128,364 $135,034 $153,126 $154,419 $162,243 $ 222 $ 18
Ratio of expenses to average net assets ...... 0.71% 0.81% 0.78% 0.81% 0.77% 1.61% 1.71%+
Ratio of net income to average net assets .... 5.21% 4.78% 4.92% 5.19% 5.32% 4.31% 3.99%+
Portfolio turnover rate ...................... 9.02% 6.07% 24.74% 11.76% 12.90% 9.02% 6.07%++
Without expense reimbursement:*
Ratio of expenses to average net assets ...... 0.84% 1.74%
Ratio of net income to average net assets 5.08% 4.18%
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 7.68 $ 8.41 $ 8.23 $ 8.13 $ 8.15
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.33 0.31 0.33 0.35 0.36
Net realized and unrealized gain (loss)
on investments ............................. 0.03 (0.60) 0.29 0.17 0.02
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.36 (0.29) 0.62 0.52 0.38
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.33) (0.31) (0.33) (0.35) (0.36)
Distributions from net realized capital gain . (0.02) (0.13) (0.11) (0.07) (0.04)
-------- -------- -------- -------- --------
Total Distributions .......................... (0.35) (0.44) (0.44) (0.42) (0.40)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.69 $ 7.68 $ 8.41 $ 8.23 $ 8.13
======== ======== ======== ======== ========
Total Return: ................................ 4.78% (3.52)% 7.78% 6.57% 4.74%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 1,425 $ 1,327 $ 1,103 $ 1,160 $ 1,011
Ratio of expenses to average net assets ...... 1.61% 1.71% 1.69% 1.71% 1.67%
Ratio of net income to average net assets .... 4.31% 3.88% 4.01% 4.29% 4.42%
Portfolio turnover rate ...................... 9.02% 6.07% 24.74% 11.76% 12.90%
Without expense reimbursement:*
Ratio of expenses to average net assets ...... 1.74%
Ratio of net income to average net assets .... 4.18%
</TABLE>
----------
See footnotes on page 68.
66
<PAGE>
FINANCIAL HIGHLIGHTS
OREGON SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.48 $ 7.83
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.36 0.35 0.36 0.38 0.40 0.29 0.10
Net realized and unrealized gain (loss)
on investments ............................. 0.04 (0.52) 0.28 0.26 -- 0.04 (0.35)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.40 (0.17) 0.64 0.64 0.40 0.33 (0.25)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.36) (0.35) (0.36) (0.38) (0.40) (0.29) (0.10)
Distributions from net realized capital gain . (0.05) (0.05) (0.10) (0.04) (0.01) (0.05) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.41) (0.40) (0.46) (0.42) (0.41) (0.34) (0.10)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.47 $ 7.48 $ 8.05 $ 7.87 $ 7.65 $ 7.47 $ 7.48
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 5.55% (2.16)% 8.48% 8.60% 5.27% 4.62% (3.32)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $ 52,890 $ 54,473 $ 57,601 $ 55,239 $ 57,345 $ 364 $--
Ratio of expenses to average net assets ...... 0.89% 0.86% 0.88% 0.90% 0.86% 1.79% 1.73%+
Ratio of net income to average net assets .... 4.86% 4.52% 4.60% 4.88% 5.18% 3.96% 3.77%+
Portfolio turnover rate ...................... 14.46% 12.28% 12.62% 19.46% 28.65% 14.46% 12.28%++
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 7.48 $ 8.04 $ 7.87 $ 7.64 $ 7.65
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.29 0.28 0.29 0.31 0.33
Net realized and unrealized gain (loss)
on investments ............................. 0.04 (0.51) 0.27 0.27 --
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.33 (0.23) 0.56 0.58 0.33
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.29) (0.28) (0.29) (0.31) (0.33)
Distributions from net realized capital gain . (0.05) (0.05) (0.10) (0.04) (0.01)
-------- -------- -------- -------- --------
Total Distributions .......................... (0.34) (0.33) (0.39) (0.35) (0.34)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.47 $ 7.48 $ 8.04 $ 7.87 $ 7.64
======== ======== ======== ======== ========
Total Return: ................................ 4.62% (2.92)% 7.37% 7.77% 4.33%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 2,465 $ 2,231 $ 2,650 $ 1,678 $ 1,540
Ratio of expenses to average net assets ...... 1.79% 1.76% 1.79% 1.80% 1.76%
Ratio of net income to average net assets .... 3.96% 3.62% 3.69% 3.98% 4.28%
Portfolio turnover rate ...................... 14.46% 12.28% 12.62% 19.46% 28.65%
</TABLE>
----------
See footnotes on page 68.
67
<PAGE>
FINANCIAL HIGHLIGHTS
SOUTH CAROLINA SERIES
<TABLE>
<CAPTION>
CLASS A CLASS C
-------------------------------------------------------- -------------------
YEAR ENDED SEPTEMBER 30, YEAR 5/27/99**
-------------------------------------------------------- ENDED TO
2000 1999 1998 1997 1996 9/30/00 9/30/99
-------- -------- -------- -------- -------- -------- --------
<S> <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 $ 7.66 $ 8.08
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.38 0.38 0.39 0.40 0.41 0.31 0.11
Net realized and unrealized gain (loss)
on investments ............................. 0.07 (0.64) 0.29 0.22 0.12 0.07 (0.42)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations ............. 0.45 (0.26) 0.68 0.62 0.53 0.38 (0.31)
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.38) (0.38) (0.39) (0.40) (0.41) (0.31) (0.11)
Distributions from net realized capital gain . (0.08) (0.07) (0.07) (0.13) (0.02) (0.08) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions .......................... (0.46) (0.45) (0.46) (0.53) (0.43) (0.39) (0.11)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ............... $ 7.66 $ 7.67 $ 8.38 $ 8.16 $ 8.07 $ 7.65 $ 7.66
======== ======== ======== ======== ======== ======== ========
Total Return: ................................ 6.07% (3.32)% 8.66% 7.99% 6.82% 5.12% (4.01)%
Ratios/Supplemental Data:
Net Assets, end of period (000s omitted) ..... $ 81,138 $ 92,793 $106,328 $101,018 $108,163 $ 893 $ 335
Ratio of expenses to average net assets ...... 0.86% 0.83% 0.80% 0.84% 0.80% 1.76% 1.72%+
Ratio of net income to average net assets .... 5.04% 4.65% 4.74% 5.04% 5.15% 4.14% 3.96%+
Portfolio turnover rate ...................... 3.49% 18.06% 16.63% -- 20.66% 3.49% 18.06%++
<CAPTION>
CLASS D
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share DATA:
Net Asset Value, Beginning of Year ........... $ 7.66 $ 8.38 $ 8.16 $ 8.06 $ 7.97
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................ 0.31 0.30 0.31 0.33 0.34
Net realized and unrealized gain (loss)
on investments ............................. 0.07 (0.65) 0.29 0.23 0.11
-------- -------- -------- -------- --------
Total from Investment Operations ............. 0.38 (0.35) 0.60 0.56 0.45
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment income ......... (0.31) (0.30) (0.31) (0.33) (0.34)
Distributions from net realized capital gain . (0.08) (0.07) (0.07) (0.13) (0.02)
-------- -------- -------- -------- --------
Total Distributions .......................... (0.39) (0.37) (0.38) (0.46) (0.36)
-------- -------- -------- -------- --------
Net Asset Value, End of Year ................. $ 7.65 $ 7.66 $ 8.38 $ 8.16 $ 8.06
======== ======== ======== ======== ========
Total Return: ................................ 5.12% (4.32)% 7.68% 7.15% 5.73%
Ratios/Supplemental Data:
Net Assets, end of year (000s omitted) ....... $ 4,443 $ 5,936 $ 5,594 $ 3,663 $ 2,714
Ratio of expenses to average net assets ...... 1.76% 1.73% 1.71% 1.75% 1.70%
Ratio of net income to average net assets .... 4.14% 3.75% 3.83% 4.13% 4.25%
Portfolio turnover rate ...................... 3.49% 18.06% 16.63% -- 20.66%
</TABLE>
----------
* During the periods stated, the Manager, at its discretion, reimbursed
expenses for the Michigan, New York and Ohio Series.
** Commencement of offering of Class C shares.
+ Annualized.
++ For the year ended September 30, 1999.
See Notes to Financial Statements.
68
<PAGE>
REPORT OF INDEPENDENT AUDITORS
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
SELIGMAN MUNICIPAL FUND SERIES, INC.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Seligman Municipal Fund Series, Inc.
(comprising, respectively, the National, Colorado, Georgia, Louisiana, Maryland,
Massachusetts, Michigan, Minnesota, Missouri, New York, Ohio, Oregon, and South
Carolina Series) as of September 30, 2000, and the related statements of
operations for the year then ended and of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with 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 September 30,
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 September 30, 2000, the results of their operations for the year then
ended and 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.
DELOITTE & TOUCHE LLP
New York, New York
November 10, 2000
69
<PAGE>
BOARD OF DIRECTORS
JOHN R. GALVIN (2, 4)
DIRECTOR, Raytheon Company
DEAN EMERITUS, Fletcher School of Law and Diplomacy
at Tufts University
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)
DIRECTOR, Commonwealth Industries, Inc.
TRUSTEE, New York-Presbyterian Hospital
RETIRED CHAIRMAN AND SENIOR PARTNER,
Sullivan & Cromwell, Law Firm
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
LEROY C. RICHIE (4)
CHAIRMAN & CEO, Q Standards Worldwide, Inc.
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
FRED E. BROWN
DIRECTOR EMERITUS
----------
Member: (1) Executive Committee
(2) Audit Committee
(3) Director Nominating Committee
(4) Board Operations Committee
70
<PAGE>
EXECUTIVE OFFICERS
WILLIAM C. MORRIS
CHAIRMAN
BRIAN T. ZINO
PRESIDENT
THOMAS G. MOLES
VICE PRESIDENT
LAWRENCE P. VOGEL
VICE PRESIDENT AND TREASURER
FRANK J. NASTA
SECRETARY
FOR MORE INFORMATION
MANAGER
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
GENERAL COUNSEL
Sullivan & Cromwell
INDEPENDENT AUDITORS
Deloitte & Touche LLP
GENERAL DISTRIBUTOR
Seligman Advisors, Inc.
100 Park Avenue
New York, NY 10017
SHAREHOLDER SERVICE AGENT
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
IMPORTANT TELEPHONE NUMBERS
(800) 221-2450 Shareholder Services
(212) 682-7600 Outside the United States
(800) 622-4597 24-Hour Automated Telephone Access Service
71
<PAGE>
GLOSSARY OF FINANCIAL TERMS
CAPITAL GAIN DISTRIBUTION -- A payment to mutual fund shareholders of profits
realized on the sale of securities in a fund's portfolio.
CAPITAL APPRECIATION/DEPRECIATION -- An increase or decrease in the market value
of a mutual fund's portfolio securities, which is reflected in the net asset
value of the fund's shares. Capital appreciation/depreciation of an individual
security is in relation to the original purchase price.
COMPOUNDING -- The change in the value of an investment as shareholders receive
earnings on their investment's earnings. For example, if $1,000 is invested at a
fixed rate of 7% a year, the initial investment is worth $1,070 after one year.
If the return is compounded, second year earnings will not be based on the
original $1,000, but on the $1,070, which includes the first year's earnings.
CONTINGENT DEFERRED SALES CHARGE (CDSC) -- Depending on the class of shares
owned, a fee charged by a mutual fund when shares are sold back to the fund. The
CDSC expires after a fixed time period.
DIVIDEND -- A payment by a mutual fund, usually derived from the fund's net
investment income (dividends and interest less expenses).
DIVIDEND YIELD -- A measurement of a fund's dividend as a percentage of the
maximum offering price or net asset value.
EXPENSE RATIO -- The cost of doing business for a mutual fund, expressed as a
percent of the fund's net assets.
INVESTMENT OBJECTIVE -- The shared investment goal of a fund and its
shareholders.
MANAGEMENT FEE -- The amount paid by a mutual fund to its investment advisor(s).
MULTIPLE CLASSES OF SHARES -- Although an individual mutual fund invests in only
one portfolio of securities, it may offer investors several purchase options
which are "classes" of shares. Multiple classes permit shareholders to choose
the fee structure that best meets their needs and goals. Generally, each class
will differ in terms of how and when sales charges and certain fees are
assessed.
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. (NASD) -- A self-regulatory
body with authority over firms that distribute mutual funds.
NET ASSET VALUE (NAV) PER SHARE -- The market worth of one fund share, obtained
by adding a mutual fund's total assets (securities, cash, and any accrued
earnings), subtracting liabilities, and dividing the resulting net assets by the
number of shares outstanding.
OFFERING PRICE -- The price at which a mutual fund's share can be purchased. The
offering price per share is the current net asset value plus any sales charge.
PORTFOLIO TURNOVER -- A measure of the trading activity in a mutual fund's
investment portfolio that reflects how often securities are bought and sold.
PROSPECTUS -- The legal document describing a mutual fund to all prospective
shareholders. It contains information required by the Securities and Exchange
Commission (SEC), such as a fund's investment objective and policies, services,
investment restrictions, how shares are bought and sold, fund fees and other
charges, and the fund's financial highlights.
SEC YIELD -- SEC Yield refers to the net income earned by a fund during a recent
30-day period. This income is annualized and then divided by the maximum
offering price per share on the last day of the 30-day period. The SEC Yield
formula reflects semiannual compounding.
SECURITIES AND EXCHANGE COMMISSION -- The primary US federal agency that
regulates the registration and distribution of mutual fund shares.
STATEMENT OF ADDITIONAL INFORMATION -- A document that contains more detailed
information about an investment company and that supplements the prospectus. It
is available at no charge upon request.
TOTAL RETURN -- A measure of a fund's performance encompassing all elements of
return. Reflects the change in share price over a given period and assumes all
distributions are taken in additional fund shares. The AVERAGE ANNUAL TOTAL
RETURN represents the average annual compounded rate of return for the periods
presented.
YIELD ON SECURITIES -- For bonds, the current yield is the coupon rate of
interest, divided by the purchase price. For stocks, the yield is measured by
dividing dividends paid by the market price of the stock.
----------
Adapted from the Investment Company Institute's 2000 MUTUAL FUND FACT BOOK.
72
<PAGE>
SELIGMAN ADVISORS, INC.
an affiliate of
[LOGO]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 Park Avenue, New York, NY 10017
www.seligman.com
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.
TEA2 9/00 [RECYCLE LOGO] Printed on Recycled Paper
