LORD ABBETT
National Tax-Free Income Fund
California Tax-Free Income Fund
Connecticut Tax-Free Income Fund
Hawaii Tax-Free Income Fund
Minnesota Tax-Free Income Fund
Missouri Tax-Free Income Fund
New Jersey Tax-Free Income Fund
New York Tax-Free Income Fund
Texas Tax-Free Income Fund
Washington Tax-Free Income Fund
Florida Series
Georgia Series
Michigan Series
Pennsylvania Series
2000 Annual Report
[GRAPHIC OMITTED]
Funds that seek to provide attractive
levels of tax-advantaged income
[LOGO]
<PAGE>
Report to Shareholders
For the Fiscal Year Ended September 30, 2000
[PHOTO]
Robert S. Dow
Chairman
October 6, 2000
"Based on the currently strong fundamentals in the municipal
bond arena, we remain positive in our outlook on municipal
bonds and plan to keep our current strategy intact."
------------------------------------------------
======================
DALBAR
HONORS COMMITMENT TO:
INVESTORS
1999
=====================
Lord, Abbett & Co. is proud to announce
we have received a DALBAR award for
providing consistently good service to
shareholder the 1999 Key Honor Award for
Mutual Fund Service. DALBAR, Inc. an
independent research firm and evaluator
of mutual fund service, presents the
award to financial services firms that
provide consistently solid service to
clients.
------------------------------------------------
Lord Abbett Tax-Free Income Fund and Lord Abbett Tax-Free Income Trust
completed the fiscal year on September 30, 2000, with aggregate net
assets of $1.81 billion. Please see Fund Facts in this report for
individual net assets and performance for each Fund and Series.
Scarce Supply, Strong Investor Interest Continue
Scarce supply and strong individual investor demand were the two
factors that evolved over the year to dominate the tax-free bond
market. However, the fiscal year began with selling pressure arising
from Y2K concerns and tax loss selling. This drove the prices on most
tax-free bonds down to discount levels by early 2000. Since bond
yields move in the opposite direction of their prices, the yields --
or coupons -- of tax-free bonds reached attractive levels relative to
the yields of Treasury securities of the same maturities. As a result,
long-term municipal bonds yielded roughly 95% of what U.S.
Treasuries(1) yielded over the period which, we believe, set the stage
for tremendous value in tax-free bonds.
As 2000 progressed, investor demand surged, and interest focused on
municipal bonds of short- and intermediate-term maturities (15 years
and less) and on coupon income. In addition, credit quality seemed to
gain importance among investors as their appetite for risk dampened
due to the increasing volatility of the stock markets. Overall,
investor interest in fixed-income investments, particularly municipal
bonds, rebounded and the favorable conditions surrounding municipal
bonds fortified investors' views of tax-free bonds as an attractive
alternative to taxable investments.
Portfolio Overviews(2)
Over the past 12 months, we continued to emphasize the high credit
quality of the portfolios with well over 50% of the portfolios' assets
consistently invested in AAA/Aaa-rated securities. In general, bonds
issued by entities in the utilities and transportation sectors, as
well as general obligation bonds, have performed well and have been a
key focus of the portfolios. The average call protection (the length
of time during which a bond cannot be paid off or, "called," by the
issuer) of the portfolios remained between eight and nine years as we
focused on bonds with maturities between 20 and 30 years. Early in the
period, we did not "jump on the bandwagon" and sell bonds that had
depreciated in price; however, we did selectively swap bonds in order
to take some tax losses. Taking tax losses benefits investors in the
Fund in that it helps offset realized gains the portfolio has made
and, in effect, helps shield shareholders from receiving taxable
capital gains distributions in the future. At the same time, we
started making new purchases of de minimus, or deeply discounted bonds
(bonds selling at substantial discount to par).
Throughout the period, we took the opportunity to add more long-term
bonds to the portfolios to capture attractive yields that have not
been available since 1995. By moving out on the yield curve (extending
the average maturity of the portfolios), we were able to continue our
emphasis on call protection while adding to the portfolios' coupon
income.
<PAGE>
Report to Shareholders
For the Fiscal Year Ended September 30, 2000
In addition, we consider many of these longer-term, higher coupon bonds good
candidates to be pre-refunded if rates fall significantly. Pre-refunded bonds
are older tax-free bonds that are "prepaid" by the proceeds of a second bond
issue. The proceeds of this second issuance are used to "call" or pay off the
original issue at its first call date. Until that time, the monies are held in
escrow and are usually invested in U.S. Treasuries. As a result, when a bond is
pre-refunded, it has virtually no default risk and typically appreciates in
value. Our decision to add these longer-term bonds contributed significantly to
the Funds' good performance throughout the last three quarters of the fiscal
year.
Our position in deeper discount, tax-free bonds was another factor in the Funds'
positive performance since these bonds also performed well. Our few holdings in
the healthcare sector detracted slightly from performance late in the period,
but since we avoid lower-rated issues in general, we held far fewer of these
bonds than many of our competitors. Therefore, the impact these bonds had on the
Funds' performance was minimal. On a positive note, most of the portfolios held
tax-free bonds issued in Puerto Rico, which performed extremely well,
particularly at the end of the period. This was due largely to the fact that
Puerto Rico bonds benefited from a dearth of supply of new bonds in most
high-tax states; therefore, tax-free investors in those states sought Puerto
Rico bonds, which generally provide tax-free income in all states.(3)
Outlook
Based on the strong fundamentals and low supply in the current municipal bond
arena, we remain positive in our outlook on municipal bonds and plan to keep our
current strategy and portfolio structures intact. We will continue our efforts
to generate high monthly dividends and to identify tax-free bonds representing
good value, with a focus on bonds of high credit quality and with maturities of
20 to 30 years. Given the right conditions, we may sell off a select portion of
the bonds we purchased at a discount as they appreciate in price in order to
lock in gains for the portfolios. We believe that the portfolios are well
positioned for the stable-to-declining interest rate environment we envision for
the months ahead. Since municipal bonds continue to offer investors favorable,
tax-free(4) income relative to Treasuries and with low credit risk, we
anticipate investor interest will stay strong.
(1) Unlike U.S. Treasury securities, an investment in the Fund is neither
insured nor guaranteed by the U.S. Government.
(2) The Fund's portfolio is actively managed and is subject to change.
(3) Minnesota limits the extent to which income from non-Minnesota bonds may be
considered tax-free for Minnesota tax purposes. Please speak to your tax
advisor for more information.
(4) All or a portion of income derived from this portfolio may be subject to
the Federal Alternative Minimum Tax. Any capital gains realized may be
subject to taxation. Shareholders should consult with their tax advisors
for specific information on taxation.
Risk: The Fund has the ability to invest in derivatives, including options,
financial futures, options on financial futures and residual interest bonds
(also known as "inverse floaters"). These instruments involve special risks.
Theses and other risks are more fully described in the prospects. There can be
no assurance that the Fund will meet its investment objective.
Performance: Past performance is no guarantee of future results. The investment
return and principal value of an investment in the Fund will fluctuate, so that
shares, on any given day or when redeemed, may be worth more or less than their
original cost. Except where noted, comparative fund performance does not account
for the deduction of sales charges, and would be different if sales charges were
included.
Mutual funds are not insured by the FDIC, are not deposits or other obligations
of, or guaranteed by banks, and are subject to investment risks including
possible loss of principal amount invested.
For more complete information about this or any Lord Abbett Mutual Fund,
including risks, charges and ongoing expenses, please call your investment
professional or Lord Abbett Distributor LLC at 800-874-3733 for a Prospectus. An
investor should read the Prospectus carefully before investing.
<PAGE>
Fund Facts
All Funds managed by Lord Abbett emphasize high quality, call protection and
total return potential. Portfolio quality shown as of 9/30/00.
All tax-free
portfolios managed
by Lord Abbett
emphasize:
o High quality
o Total return
potential
o Call protection
Lord Abbett's Focus on Quality(1)
[4 PIE CHART GRAPHICS OMITTED]
Lord Abbett's Tax-Free Record and SEC-Required Information as of 9/30/00 for
Class A Shares
<TABLE>
<CAPTION>
National California Connecticut
Tax-Free Tax-Free Tax-Free
Income Fund(2) Income Fund(2) Income Fund
------------------------------------------------------------------------------------------------------------------------------------
Date of Inception 4/2/84 9/3/85(4) 4/1/91
<S> <C> <C> <C>
Net Assets* (in millions) $539.8 $196.7 $96.9
Dividend Distribution Rate at Net Asset Value(5) 5.13% 5.01% 5.03%
------------------------------------------------------------------------------------------------------------------------------------
Average Annual Rate of Total Return(6) at Net Asset Value:
1 Year 5.02% 6.62% 4.32%
5 Years 5.16% 4.94% 4.68%
10 Years or Life of Series 6.69% 6.52% 6.29%(7)
30-Day SEC Yield(8) 4.70% 4.39% 4.52%
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Average Annual Rate of Total Return(6) at Maximum
Offering Price:
1 Year 1.60% 3.20% 1.00%
5 Years 4.46% 4.26% 3.99%
10 Years or Life of Series 6.34% 6.17% 5.93%(7)
(1) Includes holdings which are not rated by independent ratings services but
are, in Lord Abbett's opinion, of comparable quality.
(2) For specific Class share performance, please see each Fund's Financial
Highlights (pages 46-56).
(3) Returns and yield for Minnesota Tax-Free Income Fund reflect a voluntary
waiver of Lord, Abbett & Co.'s management fee. Absent this waiver, the
Fund's returns and yield would have been lower. Lord, Abbett & Co. may
revise or terminate this waiver at any time.
(4) Date shown is inception of a substantially similar predecessor fund that
became the Fund effective 7/15/96.
(5) The dividend distribution rate is calculated by dividing the annualized
dividend per share of a class derived from net investment income during the
month ended September 30, 2000 by the net asset value on the last day of
that period.
(6) Total return is the percent change in value with dividends and capital
gains reinvested. In the event a portfolio invests in private activity
bonds, the interest income derived therefrom may increase the Federal
Alternative Minimum Tax liability for shareholders subject to that tax. In
the event a portfolio does not invest entirely in municipal bonds, federal,
state and/or local taxes (as applicable) may be applicable to interest
income of such Fund.
* Total Net Assets for Funds, all classes of shares.
<PAGE>
Fund Facts -- continued
[6 PIE CHART GRAPHICS OMITTED]
Hawaii Minnesota Missouri New Jersey New York Texas Washington
Tax-Free Tax-Free Tax-Free Tax-Free Tax-Free Tax-Free Tax-Free
Income Fund Income Fund(3) Income Fund Income Fund Income Fund(2) Income Fund Income Fund
------------------------------------------------------------------------------------------------------------------------------------
10/28/91 12/27/94 5/31/91 1/2/91 4/2/84 1/20/87 4/15/92
$70.2 $20.9 $120.1 $151.0 $233.6 $74.4 $44.5
4.97% 5.55% 5.08% 5.32% 5.24% 5.22% 5.15%
------------------------------------------------------------------------------------------------------------------------------------
4.94% 5.32% 4.63% 5.31% 5.65% 4.14% 4.90%
4.82% 4.74% 4.71% 4.99% 4.77% 4.62% 5.24%
5.88%(7) 5.87%(7) 6.23%(7) 6.74%(7) 6.40% 6.70% 6.11%(7)
4.44% 5.43% 4.49% 4.30% 4.58% 4.54% 4.84%
------------------------------------------------------------------------------------------------------------------------------------
1.60% 1.90% 1.20% 1.80% 2.30% 0.70% 1.60%
4.16% 4.04% 4.02% 4.29% 4.09% 3.94% 4.58%
5.49%(7) 5.26%(7) 5.86%(7) 6.38%(7) 6.04% 6.35% 5.70%(7)
</TABLE>
(7) Since inception.
(8) 30-Day SEC Yield: The 30-day SEC yield for each class of shares is
calculated by dividing annualized net investment income per share during the
30-day period ended September 30, 2000 by the maximum offering price per share
on the last day of that period.
The results quoted in this summary represent Class A share past performance,
which is no indication of future results. The investment return and principal
value of an investment in the Series will fluctuate so that shares, on any given
day or when redeemed, may be worth more or less than their original cost.
The respective SEC-required uniformly computed average annual rates of total
return are at the Class A share maximum sales charge of 3.25%. Effective May 3,
1999, the maximum sales charge was reduced from 4.75% to 3.25%.
Lord Abbett's National, California and New York Tax-Free Income Funds also offer
other classes of shares having varying fees and expenses.
<PAGE>
Series Facts
Lord Abbett's Focus on Quality (9)
[4 PIE CHART GRAPHICS OMITTED]
Lord Abbett's Tax-Free Record and SEC-Required Information as of 9/30/00 for
Class A Shares
<TABLE>
<CAPTION>
Florida Georgia Michigan Pennsylvania
Series(10) Series(11) Series Series
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Date of Inception 9/25/91 12/27/94 12/1/92 2/3/92
<S> <C> <C> <C> <C>
Net Assets (in millions) $99.5 $29.2 $45.7 $91.8
Distribution Rate at Net Asset Value (as of 9/30/00)(12) 4.99% 5.21% 5.17% 5.14%
------------------------------------------------------------------------------------------------------------------------------------
Average Annual Rate of Total Return
at Net Asset Value (as of 9/30/00)(13):
1 Year 4.23% 6.70% 6.26% 5.13%
5 Years 4.18% 6.06% 5.25% 5.14%
Life of Series 5.40% 7.20% 6.03% 6.14%
30-Day SEC Yield(14) (as of 9/30/00) 4.22% 5.43% 4.76% 4.41%
------------------------------------------------------------------------------------------------------------------------------------
Average Annual Rate of Total Return at the
Maximum Offering Price (as of 9/30/00)(13):
1 Year 0.90% 3.20% 2.90% 1.80%
5 Years 3.49% 5.34% 4.56% 4.43%
Life of Series 5.02% 6.58% 5.59% 5.74%
</TABLE>
(9) Includes holdings that are not rated by an independent ratings service but
are, in Lord Abbett's opinion, of comparable quality.
(10) Data shown represents Class A share performance. For Florida Series Class C
share performance, please see the Series' Financial Highlights table on page 54.
For a full discussion of the differences in pricing alternatives, please refer
to the Trust's current prospectus.
(11) Returns and yield for Tax-Free Income
Trust - Georgia Series reflect a voluntary waiver of Lord, Abbett & Co.'s
management fee. Absent this waiver, the Fund's returns and yield would have been
lower. Lord, Abbett & Co. may revise or terminate this waiver at any time.
(12) The dividend distribution rate is calculated by dividing the annualized
dividend per share of a class derived from net investment income during the
month ended September 30, 2000 by the net asset value on the last day of that
period.
(13) Total return is the percent change in value with dividends and
capital gains reinvested. In the event a portfolio invests in private activity
bonds, the interest income derived therefrom may increase the Federal
Alternative Minimum Tax liability for shareholders subject to that tax. In the
event a portfolio does not invest entirely in municipal bonds, federal, state
and local taxes (if any) may be applicable to that portion of interest income
derived from taxable sources.
(14) 30-Day SEC Yield: The 30-day SEC yield for each class of shares is
calculated by dividing annualized net investment income per share during the
30-day period ended September 30, 2000 by the maximum offering price per share
on the last day of that period.
The results quoted above represent past performance for Class A shares, which is
no indication of future results. The investment return and principal value of a
Series investment will fluctuate so that shares, on any given day or when
redeemed, may be worth more or less than their original cost. The respective
SEC-required uniformly computed average annual rates of total return are at the
Class A share maximum sales charge of 3.25%.
<PAGE>
Schedule of Investments
NATIONAL TAX-FREE INCOME FUND September 30, 2000
<TABLE>
<CAPTION>
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Education Bourbon Cnty KY Sch Dist Fin Corp Sch Bldg Rev 5.45% 3/1/2016 Aa3 $ 255 $ 255,635
11.48% Bourbon Cnty KY Sch Dist Fin Corp Sch Bldg Rev 5.45% 3/1/2017 Aa3 400 399,500
Bourbon Cnty KY Sch Dist Fin Corp Sch Bldg Rev 5.50% 3/1/2018 Aa3 350 349,563
Bourbon Cnty KY Sch Dist Fin Corp Sch Bldg Rev 5.50% 3/1/2019 Aa3 410 405,900
Bourbon Cnty KY Sch Dist Fin Corp Sch Bldg Rev 5.50% 3/1/2020 Aa3 485 480,756
Connecticut St Higher Ed Supplemental Ln Auth Rev
Ser A AMT# 7.375% 11/15/2005 A1 60 60,101
Delaware St Econ Dev Auth Rev DE Tech Pk Univ DE Proj (2) 6.00% 2/1/2021 AAA 1,000 1,035,000
District of Columbia Rev James F Oyster Elem Sch Pilot (1) 6.25% 11/1/2021 A 800 822,000
District of Columbia Rev James F Oyster Elem Sch Pilot (1) 6.25% 11/1/2031 A 1,250 1,275,000
Indiana St Ed Fac Auth Rev 6.65% 3/1/2019 Aaa 10,740 11,424,675
Louisiana St Univ & Agric & Mech College Bd Hlth
Sciences Ctr Proj (12) 6.20% 5/1/2020 AAA 650 682,500
Louisiana St Univ & Agric & Mech College Bd Hlth
Sciences Ctr Proj (12) 6.375% 5/1/2031 AAA 2,440 2,571,150
Maine Hlth & Higher Ed Fac Auth Rev Ser B (12) 6.00% 7/1/2029 AAA 100 102,125
Massachusetts St Dev Fin Agy Rev Boston Univ Ser P 5.375% 5/15/2039 A3 1,625 1,446,250
Massachusetts St Dev Fin Agy Rev Boston Univ Ser P 6.00% 5/15/2059 A3 2,000 1,985,000
Massachusetts St Dev Fin Agy Rev Curry College Ser A (1) 5.375% 3/1/2019 A 320 294,800
Massachusetts St Hlth & Ed Fac Auth Rev Harvard Univ Ser P 5.625% 11/1/2028 AAA 515 514,356
Massachusetts St Hlth & Ed Fac Auth Rev New England
Med Ctr Ser F (6) 6.625% 7/1/2025 AAA 1,250 1,295,313
Massachusetts St Hlth & Ed Fac Auth Rev Wellesley
College Ser F 5.125% 7/1/2039 Aa1 165 147,675
Monroe Cnty NY Ind Dev Agy Rev Student Hsg Ser A 5.375% 4/1/2029 aa3 445 396,606
New Jersey Econ Dev Auth Rev United Methodist Homes 5.125% 7/1/2018 BB- 1,000 770,000
New Jersey Econ Dev Auth Sch Rev Princeton Jr Sch Inc
1996 Proj 7.00% 5/1/2020 BB* 960 997,200
Ohio St Higher Ed Fac Cmnty (2) 5.50% 12/1/2025 AAA 1,000 980,000
Pennsylvania St Higher Ed Assistance Agy Student Ln Rev
RIBs AMT# + (2) 7.601% 3/1/2022 AAA 4,500 4,854,375
Pennsylvania St Higher Ed Assistance Agy Student Ln Rev
RIBs AMT# + (2) 8.963% 9/1/2026 AAA 2,000 2,389,420
Private Colleges & Univ Auth GA Emory Univ Ser A 5.50% 11/1/2033 Aa1 1,000 973,750
Private Colleges & Univ Auth GA Emory Univ Ser A 6.40% 10/1/2023 Aa1 310 323,175
Private Colleges & Univ Auth GA Student Ln Rev Ser B AMT# 5.00% 11/1/2033 Aa1 900 785,250
Puerto Rico Ind Tourist Ed Med & Envr Ctrl Fac Ana G
Mendez Univ Sys Proj 5.375% 2/1/2019 BBB 500 468,125
State Univ Iowa Univ Rev Dorm Ser S U I 5.375% 7/1/2021 Aa3 1,000 1,005,000
Texas St Higher Ed Coord Bd College Student Ln Rev AMT# 7.70% 10/1/2025 A 255 262,013
University Central AR Rev Hsg Sys (9) 6.50% 1/1/2031 AAA 2,425 2,597,781
University NC Sys Pool Rev Ser B (12) 4.50% 10/1/2023 AAA 130 108,388
University NC Univ Rev Comp Int Util Sys Zero Coupon 8/1/2019 Aa2 680 232,900
University NC Univ Rev Comp Int Util Sys Zero Coupon 8/1/2021 Aa2 5,980 1,794,000
University Puerto Rico Rev Univ Rev Ser O (12) 5.375% 6/1/2030 AAA 400 386,000
University SC Univ Rev Ser A (6) 5.625% 6/1/2025 Aaa 3,200 3,184,000
University WY Univ Rev Fac Impt (12) 5.50% 6/1/2019 AAA 325 321,344
Vermont Ed & Hlth Bldgs Fin Middlebury College Proj 5.00% 11/1/2038 AA 5,000 4,362,500
Virginia St Pub Sch Auth Ser A 6.20% 8/1/2014 Aa1 1,450 1,531,563
Washington St Higher Ed Fac Auth Rev Gonzaga Univ
Proj (12) 4.75% 4/1/2022 AAA 3,275 2,845,156
West Virginia Sch Bldg Auth Rev Cap Impt Ser B (9) 5.25% 7/1/2021 AAA 3,150 2,988,563
West Virginia Univ Revs Univ Sys W VA Proj Ser A (2) Zero Coupon 4/1/2024 AAA 3,000 746,250
See Notes to Financial Statements 1
<PAGE>
Schedule of Investments (continued)
NATIONAL TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
West Virginia Univ Revs Univ Sys W VA Proj Ser A (2) Zero Coupon 4/1/2026 AAA $ 1,200 $ 264,000
Wisconsin St Hlth & Ed Fac Auth Rev Marquette Univ (12) 4.75% 6/1/2023 AAA 995 858,188
==========
Total 61,972,846
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Finance Delaware Valley PA Regl Fin Auth Loc Govt Rev Ser C (2) 7.75% 7/1/2027 AAA 1,000 1,275,000
0.34% Indiana Bd Bk Rev St Revolving Fund Prog Ser A 6.75% 2/1/2017 AAA 500 536,875
==========
Total 1,811,875
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General Akron OH Impt 5.80% 11/1/2020 AA- 575 589,375
Obligation Athens OH City Sch Dist Fac Constr & Impt (9) 6.00% 12/1/2024 AAA 500 526,250
11.38% Boulder CO Open Space Acq 5.50% 8/15/2018 Aa1 1,405 1,396,219
Cook Cnty IL Ser B (12) 5.125% 11/15/2017 AAA 2,960 2,804,600
Culpeper Cnty VA Sch (9) 6.00% 1/15/2021 AAA 690 718,463
Deer Park TX Indpt Sch Dist 4.00% 2/15/2019 AAA 2,000 1,610,000
Delaware St Ser A 5.25% 4/1/2018 AAA 250 243,438
Delaware St Ser A 5.50% 4/1/2020 AAA 1,890 1,880,550
Dickson Cnty TN Impt & Sch (9) 5.00% 4/1/2020 Aaa 2,695 2,492,875
District of Columbia Ser A (9) 5.375% 6/1/2024 AAA 350 330,750
Dodge KS Univ Sch Dist No. 443 (9) 4.375% 9/1/2018 AAA 2,025 1,723,781
Douglas Cnty NE Sch Dist No 17 Millard (9) 4.75% 6/15/2017 AAA 400 364,500
Florida St Bd of Ed Cap Outl Pub Ed Ser D 4.75% 6/1/2022 AA+ 2,490 2,169,413
Foothill De Anza CA Cmnty College Dist Cap Apprec (12) Zero Coupon 8/1/2030 AAA 4,505 794,006
Honolulu HI City & Cnty Ser D AMT# (6) 4.45% 2/1/2005 AAA 1,000 981,250
Idaho Falls ID Elec Defd Int (6) Zero Coupon 4/1/2013 AAA 500 253,125
Jackson MS Pub Sch Dist Ser B (2) 5.375% 10/1/2020 Aaa 680 660,450
Kilmarnock VA Pub Impt 6.25% 3/1/2027 BB* 1,430 1,478,263
Lane Cnty OR Sch Dist No 52 5.625% 6/15/2020 Aa2 1,000 1,005,000
Linn Cnty OR Cmnty Sch Dist No 9 Lebanon (12) 5.375% 6/15/2030 AAA 3,800 3,657,500
Marion Ohio City Sch Dist Sch Facs Constr & Impt (9) 5.625% 12/1/2022 AAA 1,250 1,248,438
Mississippi St Cap Impt Ser B (6) 4.25% 11/1/2018 AAA 765 628,256
Narragansett MA Regl Sch Dist (2) 5.375% 6/1/2018 Aaa 650 638,625
New Haven CA Univ Sch Dist Ser B (6) Zero Coupon 8/1/2022 AAA 4,200 1,160,250
New Orleans LA (6) 4.75% 12/1/2026 AAA 1,550 1,315,563
Newport News VA (12) 5.00% 3/1/2018 AAA 535 499,556
Norfolk VA Cap Impt (6) 5.25% 7/1/2020 AAA 2,300 2,208,000
North Providence RI Ser A (12) 6.125% 7/1/2016 AAA 1,410 1,492,838
Oregon St Alternate Energy Proj Ser A AMT# 5.00% 1/1/2015 Aa2 1,915 1,814,463
Oregon St Alternate Energy Proj Ser A AMT# 5.05% 1/1/2016 Aa2 1,995 1,897,744
Oregon St Alternate Energy Proj Ser A AMT# 5.10% 1/1/2017 Aa2 1,130 1,081,975
Oregon St Bd Higher Ed Ser D 5.75% 8/1/2029 Aa2 700 703,500
Plain OH Loc Sch Dist Cap Apprec (6) Zero Coupon 12/1/2027 Aaa 750 153,750
Plymouth-Canton MI Cmnty Sch Dist (6) 4.60% 5/1/2014 AAA 325 299,813
Puerto Rico Comwlth Pub Impt 4.50% 7/1/2023 A 440 370,150
Puerto Rico Comwlth RIBs+ 6.521% 7/1/2029 A* 750 796,875
Reynoldburg OH Cap Fac 5.625% 12/1/2025 Aa3 1,435 1,418,856
Richmond VA (9) 5.50% 1/15/2018 AAA 950 950,000
South Wash Cnty MN Indpt Sch Dist No. 833 Ser A (12) 5.50% 2/1/2018 AAA 5,215 5,182,406
South Wash Cnty MN Indpt Sch Dist No. 833 Ser A (12) 5.50% 2/1/2019 AAA 2,990 2,956,363
Taunton MA (9) 4.75% 5/1/2019 AAA 2,535 2,246,644
Teays Valley OH Loc Sch Dist Sch Facs Constr & Impt (6) 5.375% 12/1/2020 Aaa 1,000 975,000
Texas St Wtr Dev Bd 7.15% 8/1/2035 Aa1 1,915 2,037,081
Washington Multnomah & Yamhill Cnty OR Sch Dist No 1J (9) 5.60% 4/1/2020 Aaa 190 190,950
2 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
NATIONAL TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Washington St Ser A 5.75% 7/1/2014 Aa1 $ 1,200 $ 1,230,000
Wyandotte Cnty KS Sch 204 Bonner Springs Ser A (9) 5.60% 9/1/2020 Aaa 1,305 1,300,106
Wyoming OH City Sch Dist 5.25% 12/1/2022 Aa3 1,000 927,496
==========
Total 61,404,506
------------------------------------------------------------------------------------------------------------------------------------
Healthcare Abag. Fin Auth for Nonprofit Corp CA Ctfs Partn O'Connor
16.07% Woods Obligated Group (1) 6.20% 11/1/2029 A 1,000 1,045,000
Arizona Health Facs Auth Hosp Northern AZ Healthcare
AMBAC (2) 4.75% 10/1/2030 AAA 3,005 2,509,175
Clackamas Cnty OR Hosp Fac Auth Rev Legacy Hlth Sys (12) 5.00% 2/15/2015 AAA 1,650 1,600,500
Clackamas Cnty OR Hosp Fac Auth Rev Legacy Hlth Sys (12) 5.00% 2/15/2016 AAA 1,000 956,250
Connecticut St Hlth & Ed Fac Auth Rev The Griffin Hosp
Ser A 5.75% 7/1/2023 aa2 2,060 1,784,475
Cumberland Cnty PA Muni Auth Rev 1st Mtg Carlisle
Hosp & Hlth 6.80% 11/15/2014 BB- 1,650 1,526,250
Dade Cnty FL Hlth Fac Auth Hosp Rev Miami Child (6) 6.875% 8/15/2017 AAA 3,000 3,006,330
Delaware Cnty PA Auth Hosp Rev Crozer Chester Med Ctr (1) 5.375% 12/1/2018 A 2,625 2,375,625
Halifax Hosp Med Ctr FL Hlth Care Fac Rev Halifax Mgmt
Sys Ser A (1) 5.20% 4/1/2018 A 1,170 1,054,463
Hastings MN Hlth Care Fac Rev Regina Med Ctr (1) 5.30% 9/15/2028 A 1,010 869,863
Illinois Hlth Fac Auth Rev Holy Cross Hosp Proj 6.75% 3/1/2024 Ba3 2,000 1,850,000
Indiana Cnty PA Hosp Auth Rev Ser A 7.125% 7/1/2023 A3 1,500 1,550,625
Iowa Fin Auth Rev IA St Revolving Fd Comb Ser 6.25% 5/1/2024 A+ 3,400 3,527,500
Iowa Fin Auth Rev Mercy Hlth Sys Ser V 5.25% 8/15/2021 Aa3 500 455,000
Jackson OH Hosp Fac Rev Cons Hlth Sys Jackson Hosp (3) 6.125% 10/1/2023 AA 680 690,200
Kentucky Economic Dev Fin Auth Norton Healthcare Inc
Ser A (12) Zero Coupon 10/1/2025 AAA 10,000 2,187,500
Kentucky Economic Dev Fin Auth Norton Healthcare Inc
Ser A 6.625% 10/1/2028 -** 3,000 2,895,000
Lucas Cnty OH Hosp Rev Promedia Hlth Care Oblig Corp (2) 5.375% 11/15/2039 AAA 505 465,231
Maryland St Hlth & Higher Ed Fac Auth Rev Catholic Hlth
Initiatives Ser A 6.00% 12/1/2024 Aa3 100 101,500
Maryland St Hlth & Higher Ed Fac Auth Rev Kaiser
Permanente Ser A 5.375% 7/1/2015 A 4,280 4,071,350
Maryland St Hlth & Higher Ed Fac Auth Rev Univ Maryland
Medical System 6.75% 7/1/2030 aa1 1,950 2,013,375
McKean Cnty PA Hosp Auth Rev Bradford Hosp Proj (1) 6.00% 10/1/2013 A 3,500 3,526,250
Mesa Ind Dev Auth Discovery Health Sys Ser A (12) 5.75% 1/1/2025 AAA 850 852,125
Minneapolis & St Paul MN Hsg & Redev Auth Hlth Care
Sys Group Hlth Plan Proj 6.90% 10/15/2022 BB+ 700 707,000
Montgomery AL Med Clinic Brd Hlth Care Fac Rev 7.00% 3/1/2015 aa1 1,305 1,313,326
New Jersey Econ Dev Auth Rev 1st Mtg Cadbury Corp
Ser A (1) 5.50% 7/1/2028 A 550 507,375
New Jersey Hlth Care Fac Fin Auth Rev Hackensack Univ
Med Ctr 6.00% 1/1/2034 A3 110 109,038
New Jersey Hlth Care Fac Fin Auth Rev Robert Wood
Johnson Univ Hosp 5.75% 7/1/2031 A+ 1,000 975,000
New Jersey Hlth Care Fac Fin Auth Rev Ser C (12) 8.60% 7/1/2017 AAA 285 287,471
New Jersey Hlth Care Fac Fin Auth Rev Society of the Valley
Hosp Ser C (12) 6.625% 7/1/2010 AAA 250 252,983
New York St Med Care Fac Fin Agy Rev 8.875% 8/15/2007 A- 605 607,124
North Carolina Med Care Commn Rev NC Hsg Fndtn Inc (1) 6.45% 8/15/2020 A 150 153,750
Plymouth MN Hlth Fac Rev West Hlth Proj Ser A (9) 6.125% 6/1/2024 AAA 2,990 3,049,800
Rhode Island St Hlth & Ed Bldg Corp Rev Higher Ed Fac
Brown Univ 6.00% 9/1/2025 Aa1 7,070 7,193,725
See Notes to Financial Statements 3
<PAGE>
Schedule of Investments (continued)
NATIONAL TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Rhode Island St Hlth & Ed Bldg Corp Rev Hlth Fac
Tockwotton Home 6.25% 8/15/2022 BB* $ 650 $ 584,188
Rhode Island St Hlth & Ed Bldg Corp Rev Higher Ed Fac
Johnson & Wales (12) 5.00% 4/1/2029 AAA 3,500 3,071,250
Rhode Island St Hlth & Ed Bldg Corp Rev Roger
Williams Rlty (7) 6.50% 8/1/2029 AAA 3,290 3,421,600
Rochester MN Hlth Care Fac Rev Ser H RIBs+ 7.509% 11/15/2015 AA+ 10,000 10,500,000
Saginaw MI Hosp Fin Auth Covenant Med Ctr Ser F 6.50% 7/1/2030 A 1,000 1,002,500
South Carolina Jobs Econ Dev Auth Hosp Facs Rev Hlth
Alliance Ser A 7.375% 12/15/2021 aa1 2,000 2,055,000
St Cloud MN Health Care Rev Hosp Oblig Group Ser A (9) 6.25% 5/1/2018 Aaa 3,320 3,523,350
Teton Cnty WY Hosp Dist Hosp Rev Ref & Impt (1) 5.80% 12/1/2017 A 210 205,013
University MO Hlth Fac Rev Univ MO Hlth Sys Ser A (2) 5.125% 11/1/2028 AAA 935 841,500
Wisconsin St Hlth & Ed Fac Auth Rev Aurora Hlth Care Ser B 5.50% 2/15/2015 A-* 1,600 1,408,000
Wisconsin St Hlth & Ed Fac Auth Rev Hess Mem Hosp Assn (1) 7.875% 11/1/2022 A 3,275 3,676,184
Wisconsin St Hlth & Ed Fac Auth Rev Wheaton Franciscan
Svc (12) 6.50% 8/15/2011 AAA 315 325,392
==========
Total 86,684,156
------------------------------------------------------------------------------------------------------------------------------------
Housing Arlington Cnty VA Ind Dev Auth Multi Fam Rev Hsg
11.16% Mtg Sr Lien 6.30% 7/1/2016 A 500 520,000
Arlington Cnty VA Ind Dev Auth Multi Fam Rev Hsg
Mtg Sr Lien 8.00% 7/1/2015 BB* 890 895,563
Bexar Cnty TX Hsg Fin Corp Rev Coll Mtg Ser A AMT# (10) 8.20% 4/1/2022 AAA 520 527,150
Colorado Hsg Fin Auth Multi Fam Hsg Ser A AMT# 6.80% 10/1/2037 AA+ 2,360 2,492,750
Georgia St Hsg & Fin Auth Rev Sing Fam Mtg Ser A
Sub A-2 AMT# (7) 6.45% 12/1/2027 AAA 210 215,250
Georgia St Hsg & Fin Auth Rev Sing Fam Mtg Ser B
Sub B-2 AMT# (7) 6.55% 12/1/2027 AAA 1,955 2,008,763
Georgia St Hsg & Fin Auth Rev Sing Fam Mtg Sub
Ser A-2 AMT# (7) 6.40% 12/1/2015 AAA 1,250 1,298,438
Idaho Hsg Agy Sing Fam Mtg Ser F AMT# (7) 7.45% 7/1/2015 Aaa 745 791,563
Illinois Hsg Dev Auth Multi Fam Hsg Lawndale AMT# (7) 6.80% 12/1/2016 AAA 1,000 1,067,500
Illinois Hsg Dev Auth Multi Fam Hsg Lawndale AMT# (7) 7.10% 12/1/2034 AAA 1,500 1,612,500
Indiana St Hsg Fin Auth Sing Fam Mtg Rev Ser B-3 AMT# (8) 5.55% 1/1/2025 Aaa 4,625 4,422,656
Maine St Hsg Auth Mtg Purp Ser A-2 AMT# 6.75% 11/15/2035 Aa2 130 134,388
Manchester NH Hsg & Redev Auth Rev Ser B (1) Zero Coupon 1/1/2019 A 2,570 748,513
Manchester NH Hsg & Redev Auth Rev Ser B (1) Zero Coupon 1/1/2022 A 5,140 1,214,325
Manchester NH Hsg & Redev Auth Rev Ser B (1) Zero Coupon 1/1/2023 A 5,090 1,119,800
Manchester NH Hsg & Redev Auth Rev Ser B (1) Zero Coupon 1/1/2026 A 5,140 912,350
Manchester NH Hsg & Redev Auth Rev Ser B (1) Zero Coupon 1/1/2029 A 3,140 455,300
Maryland St Cmnty Dev Admin Dept Hsg & Cmnty Dev
Sing Fam Ser 7 AMT# 7.30% 4/1/2025 Aa2 270 276,413
Massachusetts St Hsg Fin Agy Hsg Rev Rental Mtg Ser A
AMT# (2) 7.35% 1/1/2035 AAA 1,420 1,515,850
Massachusetts St Hsg Fin Agy Hsg Rev Sing Fam Ser 29
AMT# 6.75% 6/1/2026 Aa3 1,395 1,445,569
Minneapolis St Paul MN Hsg Fin Bd Rev Sing Fam Mtg
Ser AB AMT# (11) 6.25% 11/1/2030 AAA 750 780,000
Minnesota St Hsg Fin Agy Sing Fam Mtg Ser G-1 AMT# 5.60% 7/1/2022 Aa1 945 919,013
Missouri St Hsg Dev Cmnty Mtg Sing Fam Mtg Rev Ser A
AMT# (10) 7.375% 8/1/2023 AAA 375 383,996
Missouri St Hsg Dev Cmnty Mtg Rev Sing Fam Homeowner
Ln Ser B-1 AMT# (11) 6.25% 3/1/2031 AAA 1,000 1,012,500
Missouri St Hsg Dev Cmnty Mtg Rev Sing Fam Ser E-1
AMT# (11) Zero Coupon 3/1/2029 AAA 2,420 420,475
4 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
NATIONAL TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Montana St Bd Hsg Sing Fam Mtg Ser A-1 (7) 6.05% 12/1/2037 AA+ $ 4,580 $ 4,642,975
New Orleans LA Fin Auth Sing Fam Mtg Rev Ser B-2
AMT# (8) 6.00% 12/1/2018 Aaa 610 622,963
North Carolina Hsg Fin Agy Sing Fam Rev Ser BB AMT# 6.25% 3/1/2012 Aa2 1,200 1,248,000
Oklahoma Hsg Fin Agy Sing Fam Rev Mtg
Homeowner Ser B-1 Zero Coupon 3/1/2029 Aaa 4,955 848,544
Oklahoma Hsg Fin Agy Sing Fam Rev Mtg Ser B-1 5.30% 9/1/2026 Aaa 750 719,063
Oklahoma Hsg Fin Agy Sing Fam Rev Mtg Ser B-2 AMT# Zero Coupon 9/1/2030 Aaa 9,900 1,534,500
Oklahoma Hsg Fin Agy Sing Fam Rev Mtg Ser B-2 AMT# 5.40% 3/1/2025 Aaa 1,975 1,858,969
Oklahoma Hsg Fin Agy Sing Fam Rev Ser D-1 (11) Zero Coupon 3/1/2029 Aaa 6,000 1,050,000
Oklahoma Hsg Fin Agy Sing Fam Rev Mtg Homeowner
Ser D-2 AMT# (11) Zero Coupon 9/1/2030 Aaa 4,425 663,750
Oregon St Hlth Hsg Ed & Cultural Fac Auth Reed College
Proj Ser A 5.75% 7/1/2032 AA- 4,000 4,020,000
Prince Georges Cnty MD Hsg Single Family Ser A AMT# 6.15% 8/1/2019 AAA 300 304,500
South Dakota Hsg Dev Auth Home Ownership Mtg Ser A 5.125% 5/1/2027 AAA 5,500 5,080,625
Tennessee Hsg Dev Agy Mtg Fin Ser A 5.95% 7/1/2028 AA 1,780 1,791,125
Tennessee Hsg Dev Agy Mtg Fin Ser A AMT# 7.125% 7/1/2026 AA 815 832,319
Utah St Hsg Fin Agy Sing Fam Mtg Ser A 2 AMT# (7) 7.75% 1/1/2023 AAA 35 35,772
Virginia St Hsg Dev Auth Comwlth Mtg Rites PA 673 RIBs+ 8.397% 1/1/2022 AA+ 3,800 4,099,250
Virginia St Hsg Dev Auth Comwlth Mtg Ser A 7.10% 1/1/2022 Aa1 1,455 1,511,381
Washington St Hsg Fin Cmnty Sing Fam Prog Ser 2-A
AMT# (11) 6.30% 12/1/2027 Aaa 890 906,688
Wyoming Cmnty Dev Auth Hsg Rev Ser 2 AMT# 6.35% 6/1/2029 Aa2 765 780,300
Wyoming Cmnty Dev Auth Hsg Rev Ser 5 5.90% 6/1/2017 Aa2 500 514,370
==========
Total 60,255,719
------------------------------------------------------------------------------------------------------------------------------------
Industrial Bedford Cnty VA Ind Dev Auth Ind Dev Rev Nekoosa
4.30% Packaging Proj AMT# 6.30% 12/1/2025 aa2 465 457,444
Butler AL Ind Dev Bd Solid Waste Disp Rev James River
Proj AMT# 8.00% 9/1/2028 BBB 1,500 1,620,000
California Statewide Cmnty Dev Auth Lease Rev
United Airlines Ser A AMT# 5.70% 10/1/2033 aa3 1,000 906,250
Clark Cnty NV Ind Dev Rev PA Ser 349 RIBs+ 5.082% 10/1/2030 A* 12,500 10,703,125
Clark Cnty NV Ind Dev Rev Ser C AMT# (2) 5.95% 12/1/2038 AAA 3,320 3,349,050
Connecticut St Dev Auth Solid Waste Disp Fac Rev
Pfizer Inc Proj AMT# 7.00% 7/1/2025 AAA 2,500 2,718,750
Effingham Cnty GA Dev Auth Fort James Proj AMT# 5.625% 7/1/2018 aa2 1,000 923,750
Green Bay WI Redev Auth Fort James Proj AMT# 5.60% 5/1/2019 aa2 210 189,788
Jacksonville FL Swr & Solid Waste Disp Fac Rev
Anheuser-Busch Proj AMT# 5.875% 2/1/2036 A+ 500 492,500
Moraine OH Solid Waste Disp General Motors Corp Proj
AMT# 5.65% 7/1/2024 A 450 440,438
Rhode Island St Economic Dev (3) 6.125% 7/1/2020 AA 650 659,749
Texas City TX Ind Dev Corp Marine Term Rev Arco Pipe Line 7.375% 10/1/2020 AA+ 650 774,313
==========
Total 23,235,157
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Bemidji MN Lease Rev MN St Bureau Criminal Appreh (12) 5.75% 12/1/2018 Aaa 555 564,019
aneous Bemidji MN Lease Rev MN St Bureau Criminal Appreh (12) 5.75% 12/1/2019 Aaa 490 496,125
8.18% Boise City ID Urban Renewal Lease Rev Urban Renewal
ADA Cnty Courts (2) 6.25% 8/15/2019 AAA 7,385 7,929,644
Cobb Marietta GA Coliseum & Exhibit Hall Auth Rev (12) 5.625% 10/1/2026 AAA 2,150 2,152,688
Delaware River & Bay Auth Ser A (2) 5.75% 1/1/2029 AAA 1,000 1,011,250
Fayette Cnty GA Pub Facs Auth Rev Criminal Justice
Center Proj 6.00% 6/1/2030 Aa2 3,500 3,609,375
See Notes to Financial Statements 5
<PAGE>
Schedule of Investments (continued)
NATIONAL TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
George L Smith II GA World Congress Ctr Auth Rev
Domed Stadium Proj AMT# (12) 5.75% 7/1/2015 AAA $ 1,500 $ 1,531,875
Hamilton Cnty Ohio Sales Tax Hamilton Cnty Football Proj
Ser B (12) 5.00% 12/1/2027 AAA 4,750 4,298,750
Henrico Cnty VA Econ Dev Auth Pub Fac Lease Rev
Jail Proj 6.125% 11/1/2019 Aa2 1,000 1,057,500
Jefferson Cnty AL (9) 5.50% 2/15/2020 AAA 1,000 986,250
Miami-Dade Cnty FL Sp Oblig Sub Ser A (12) Zero Coupon 10/1/2024 AAA 3,650 871,438
Miami-Dade Cnty FL Sp Oblig Sub Ser B (12) Zero Coupon 10/1/2033 AAA 10,000 1,350,000
New York St Dorm Auth Rev Fashion Inst Tech (9) 5.50% 7/1/2030 AAA 4,000 3,865,000
New York St Dorm Auth Rev Mount Sinai Hlth Ser A 6.50% 7/1/2025 BB+ 2,000 2,060,000
New York St Dorm Auth Rev Mount Sinai Hlth Ser A 6.60% 7/1/2026 BB+ 1,500 1,530,000
Providence RI Redev Agy Rev Pub Safety & Muni Bldg
Ser A (2) 5.75% 4/1/2029 Aaa 415 418,113
St Louis MO Ind Dev Auth Rev Kiel Ctr Multi Purp Arena
AMT# 7.875% 12/1/2024 BB* 3,500 3,666,250
Virginia St Pub Bldg Auth Pub Facs Rev Ser A 5.75% 8/1/2020 Aa1 700 711,375
West Virginia St Pub Svc of COI Proj (12) 5.75% 6/1/2025 AAA 2,000 2,015,000
West Virginia St Bldg Comnty Lease Rev WV Regl Jail
Ser A (2) 5.375% 7/1/2018 AAA 520 516,098
Wyoming Bldg Corp Rev (2) 6.00% 10/1/2019 AAA 1,425 1,476,656
Wyoming Bldg Corp Rev (2) 6.00% 10/1/2021 AAA 2,000 2,062,500
==========
Total 44,179,906
------------------------------------------------------------------------------------------------------------------------------------
Pollution Coconino Cnty AZ Poll Ctrl Cor Rev NV Pwr Co Ser B AMT# 5.80% 11/1/2032 BBB 2,000 1,792,500
1.86% Missouri St Envr Impt & Enrg Res Auth Wtr Poll Ctrl
Revolving Fd Prog Ser B 7.20% 7/1/2016 Aaa 3,250 3,562,813
Missouri St Envr Impt & Enrg Res Auth Wtr Poll Ctrl
Revolving Fd Prog Series E 5.25% 1/1/2019 Aaa 1,000 963,750
Pueblo Cnty Colo Pollutn Ctl (2) 5.10% 1/1/2019 AAA 4,000 3,740,000
==========
Total 10,059,063
------------------------------------------------------------------------------------------------------------------------------------
Power Deptford Twp NJ Muni Util (2) 5.50% 2/1/2023 AAA 500 491,250
7.12% Deptford Twp NJ Muni Util (2) 5.50% 2/1/2027 AAA 250 243,750
Gainesville FL Utils Sys Rev Ser A 5.00% 10/1/2016 AA 1,000 945,000
Gainesville FL Utils Sys Rev Ser A 5.20% 10/1/2022 AA 500 471,250
Grant Cnty WA Pub Util Dist #2 Priest Rapids Hydro 2nd
Ser B AMT# (12) 5.375% 1/1/2018 AAA 300 290,250
Hamilton OH Elec Sys Mtg Rev Ser B (6) 6.30% 10/15/2025 AAA 7,555 7,819,425
Hawaii St Dept Bdg & Fin Sp Purp Mtg Rev RIBs AMT# + 6.229% 12/15/2023 A+ 2,000 1,832,500
Hawaii St Dept Bdg & Fin Sp Purp Mtg Rev HI Elec Co
Ser A AMT# (12) 6.60% 1/1/2025 AAA 135 141,750
Indiana Muni Pwr Agy Pwr Supply Sys Ser A (12) 5.30% 1/1/2023 AAA 1,700 1,615,000
Long Island Pwr Auth NY Elec Rites PA 686 RIBs+ 5.148% 12/1/2029 5,500 5,128,750
Milwaukee WI Loc Dist Heating Fac Rev WI Elec Pwr Co
Proj AMT# 6.85% 10/1/2021 Aa3 4,100 4,264,779
North Carolina Eastern Muni Pwr Agy Pwr Sys Rev Ser G (1) 5.75% 12/1/2016 A 4,750 4,690,625
North Carolina Muni Pwr Agy No. 1 Catawba Elec Rev (1) 5.00% 1/1/2015 A 5,900 5,369,000
Northern Muni Pwr Agy MN Elec Sys Rev Ser B (2) 5.50% 1/1/2018 AAA 1,900 1,862,000
Salt River Proj AZ Agric Impt Pwr Dist Elec Sys Rev Ser C 5.00% 1/1/2025 Aa2 1,905 1,721,644
Western Generation Agy OR Rev Wauna Cogeneration
Ser B AMT# 7.40% 1/1/2016 BB* 1,500 1,561,875
==========
Total 38,448,848
------------------------------------------------------------------------------------------------------------------------------------
6 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
NATIONAL TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Prere- Amarillo TX Hlth Fac Corp Reg RIBs (9)+ 8.277% 1/3/2022 AAA $ 4,050 $ 4,409,438
funded Chattanooga Hamilton Cnty TN Hosp Auth Rev
8.08% Ser B RIBs (9)+ 9.165% 5/25/2021 AAA 3,500 3,735,025
Clermont Cnty OH Hosp Fac Rev Mercey Hlth Ser A (2) 7.50% 9/1/2019 AAA 275 282,741
Cobb Cnty GA Kennestone Hosp Auth Rev Ctfs
Ser 86-A (12) Zero Coupon 8/1/2015 AAA 1,000 406,250
Cumberland Cnty NC Ctfs Partn Civic Ctr Proj Ser A (2) 6.40% 12/1/2019 AAA 2,800 3,041,500
District of Columbia Rev RIBs+ 8.531% 4/25/2022 AAA 7,750 8,486,250
Glendale AZ Dev Auth Ed Fac Rev Amer Graduate Sch Intl (5) 7.125% 7/1/2020 AAA 1,000 1,116,250
Henrico Cnty VA Ind Dev Auth Pub Fac Lease Rev 7.125% 8/1/2021 Aa2 3,095 3,478,006
Indiana St Ed Fac Auth Rev 6.65% 3/1/2019 AAA 860 928,800
Kansas City MO Arpt Rev Gen Impt Ser B (9) 6.875% 9/1/2014 AAA 2,550 2,779,500
Lauderdale Cnty & Florence AL Health Care Auth Rev (12) 5.75% 7/1/2019 AAA 2,000 2,122,500
Minneapolis & St Paul MN Hsg & Redev Auth
Hlth Care Sys Health One Obligated Grp Ser A (12) 6.75% 8/15/2014 AAA 1,300 1,333,839
Montgomery AL Med Clinic Brd Hlth Care Fac Rev 7.00% 3/1/2015 AAA 445 449,499
Ohio St 6.20% 8/1/2013 AAA 750 814,688
Puerto Rico Comwlth Hwy & Transn Auth Hwy Rev Ser T 6.625% 7/1/2018 AAA 372 392,333
Puerto Rico Elec Pwr Auth Pwr Rev RIBs (9)+ 7.378% 7/1/2023 AAA 2,500 2,700,000
Springfield MO Sch Dist No. R-12 Ser A (6) 6.75% 3/1/2011 AAA 1,225 1,236,662
Uintah Cnty UT Poll Ctrl Rev Natl Rural Util Dsrt Ser 84F 2 10.50% 6/15/2014 AAA 1,000 1,016,550
University NM Tech Dev Corp Lease Rev Univ Ctr Res
Ser A (12) 6.55% 8/15/2025 AAA 1,410 1,531,612
Weber Cnty UT Muni Bldg Auth Lease Rev (3) 7.50% 12/15/2019 AAA 3,000 3,378,750
==========
Total 43,640,193
------------------------------------------------------------------------------------------------------------------------------------
Solid Cobb Cnty GA Solid Waste Mgmt Auth Rev AMT# 6.40% 1/1/2015 AAA 900 951,750
Waste
0.18%
------------------------------------------------------------------------------------------------------------------------------------
Trans- Alameda Corridor Transn Auth CA Ser A (12) 4.75% 10/1/2025 AAA 3,000 2,655,000
port- Albuquerque NM Arpt Rev Ser A AMT# (2) 6.60% 7/1/2016 AAA 2,650 2,791,802
ation Billings MT Arpt Rev AMT# (12) 6.10% 7/1/2016 AAA 190 200,450
13.44% Billings MT Arpt Rev AMT# (12) 6.20% 7/1/2020 AAA 2,775 2,906,813
Delaware Transn Auth Transn Sys Rev Sr 6.00% 7/1/2020 AA 6,215 6,416,988
Director St. NV Dept Business & Ind Cap Apprec
Las Vegas Monorail (2) Zero Coupon 1/1/2029 AAA 10,000 1,837,500
Director St. NV Dept Business & Ind Las Vegas
Monorail Proj 1st Tier (2) 5.375% 1/1/2040 AAA 3,835 3,556,963
E-470 Pub Hwy Auth CO Rev Cap Appre Ser B (12) Zero Coupon 9/1/2031 AAA 15,000 2,362,500
Manchester NH Gen Arpt Rev Ser A (9) 5.625% 1/1/2030 AAA 155 152,288
Maryland St Ctfs Partn Aviation Admin Fac AMT# 5.00% 5/1/2022 AA 4,160 3,712,800
Maryland St Ctfs Partn Aviation Admin Fac AMT# 5.00% 5/1/2026 AA 2,585 2,290,956
Massachusetts Bay Transn Auth MA Gen Transn Sys Ser C 5.00% 3/1/2024 Aa2 1,000 896,250
Massachusetts St Port Auth PFC Ser A (9) 5.125% 7/1/2017 AAA 225 215,438
Massachusetts St Tpk Auth Met Hwy Sys Rev Ser A (12) 5.00% 1/1/2027 AAA 5,000 4,443,750
Massachusetts St Tpk Auth Met Hwy Sys Rev Sub Ser A (2) 5.00% 1/1/2039 AAA 4,000 3,485,000
Metropolitan Washington DC Arpt Ser B AMT# 5.50% 10/1/2023 Aa3 1,000 962,500
Minneapolis & St Paul MN Met Arpts Cmnty Arpt Rev
Ser A (2) 5.00% 1/1/2030 AAA 10,000 8,900,000
New Jersey Econ Dev Auth Rev Transn Proj Sublease
Ser A (9) 5.00% 5/1/2018 AAA 200 186,000
New Jersey St Transn Tr Fd Auth Transn Sys Ser A 6.00% 6/15/2019 Aa2 2,750 2,863,438
Port Auth NY & NJ Cons 70th Ser AMT# 7.25% 8/1/2025 AA- 500 508,480
Port Auth NY & NJ RIBs+ 3.933% 8/1/2033 AA* 5,000 3,450,000
Port Kalama WA Rev Ser B AMT# 5.625% 12/1/2015 aa1 1,025 981,438
See Notes to Financial Statements 7
<PAGE>
Schedule of Investments (continued)
NATIONAL TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser B 6.00% 7/1/2026 A $ 1,500 $ 1,546,875
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev
Transn Rev Ser PMD-9 RIBs+ (9) 7.60% 7/1/2026 AAA 500 532,500
Rhode Island St Economic Corp Arpt Rev Ser B (6) 6.00% 7/1/2020 AAA 1,210 1,249,325
Rhode Island St Economic Corp Arpt Rev Ser B (6) 6.00% 7/1/2028 AAA 1,200 1,230,000
Route 3 North Transn Impt Assoc MA Lease Rev (12) 5.375% 6/15/2029 AAA 3,000 2,853,750
San Francisco CA City & Cnty Arpt Commn Intl Arpt
Rev Spl Fac Lease SFO Fuel Ser A AMT# (9) 6.125% 1/1/2027 AAA 500 517,496
Santa Rosa Bay FL Bdg Auth (1) 6.25% 7/1/2028 A 1,550 1,565,500
Santa Rosa Bay FL Bdg Auth Rev 6.25% 7/1/2028 aa3 2,040 1,935,450
Southeastern PA Transn Auth PA Spl Rev Ser B (6) 5.25% 3/1/2016 AAA 1,000 978,750
Tulsa OK Muni Arpt Term Rev American Airlines Proj 6.25% 6/1/2020 aa1 4,500 4,353,750
==========
Total 72,539,750
------------------------------------------------------------------------------------------------------------------------------------
Water/ Arizona Wtr Infrastructure Wtr Quality Ser A 5.625% 10/1/2014 Aa2 1,110 1,140,525
Sewer Atlanta GA Wtr & Waste Wtr Rev Ser A (6) 5.00% 11/1/2038 AAA 4,000 3,515,000
6.60% Baltimore MD Rev Water Proj Ser A (9) 6.00% 7/1/2018 AAA 385 403,288
Baltimore MD Rev Water Proj Ser A (9) 6.00% 7/1/2020 AAA 425 440,406
Colorado Wtr Res Pwr Dev Auth Clean Wtr Rev Ser A 5.25% 9/1/2019 AAA 255 244,800
East Bay CA Muni Util Dist Wtr Sys Rev (12) 5.00% 6/1/2038 AAA 11,000 9,982,496
Fort Worth Texas Wtr & Swr Rev 5.25% 2/15/2016 Aa2 1,150 1,116,938
Hallsdale Powell Util Dist Knox Cnty TN Wtr & Swr
Rev (2) 5.00% 4/1/2019 AAA 1,000 920,000
Harpeth Valley Utils Dist TN Ser A (12) 5.00% 9/1/2028 AAA 1,375 1,222,031
Henry Cnty GA Wtr & Swr Auth Rev (6) 5.625% 2/1/2025 AAA 800 791,000
Henry Cnty GA Wtr & Swr Auth Rev (6) 5.625% 2/1/2030 AAA 1,000 983,750
Iowa City Iowa Swr Rev (9) 5.375% 7/1/2020 Aaa 1,220 1,189,500
Kansas St Dev Fin Auth Rev Pub Wtr Supply
Revolving Ln-2 4.75% 4/1/2018 A2 1,480 1,300,550
Louisville & Jefferson Cnty KY Met Swr & Drain Sys
Ser A (6) 5.00% 5/15/2030 AAA 4,000 3,535,000
Memphis TN San Sew Sys Rev 5.75% 5/1/2017 AA+ 500 511,250
Midlothian TX Water Dist (9) Zero Coupon 9/1/2022 AAA 2,000 532,500
New Orleans LA Sew Svc Rev (6) 5.50% 6/1/2020 AAA 365 358,613
New York NY City Muni Wtr Fin Auth Wtr & Swr Sys
Rev Ser A 5.50% 6/15/2023 AA 1,500 1,456,875
Oregon St Bd Bk Rev OR Economic Cmnty Dev Dept
Ser A (12) 5.50% 1/1/2017 AAA 570 573,563
Phoenix AZ Civic Impt Corp (6) 6.00% 7/1/2024 AAA 2,650 2,732,813
Scottsdale AZ Wtr & Swr Rev Proj of 1989 Ser E 4.50% 7/1/2020 Aa1 640 542,400
White Hsg Util Dist TN Robertson & Sumner Cntys
Wtr & Swr Rev (9) 6.00% 1/1/2026 Aaa 1,255 1,291,081
York Cnty VA Swr Rev 5.875% 6/1/2024 Aa3 530 541,263
York Cnty VA Swr Rev 5.875% 6/1/2029 Aa3 290 295,075
==========
Total 35,620,717
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 100.19% (Cost $537,924,355) 540,804,486
------------------------------------------------------------------------------------------------------------------------------------
8 See Notes to Financial Statements
<PAGE>
Schedule of Investments
NEW YORK TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education Hempstead Town NY Ind Dev Agy Civic Fac Rev
14.27% Hofstra Univ Proj (12) 5.80% 7/1/2015 AAA $ 750 $ 776,250
New York NY City Ind Dev Agy Civic Fac Rev
Light House Intl (12) 4.50% 7/1/2023 AAA 950 790,875
New York NY City Ind Dev Agy Civic Fac Rev
New Sch Ser A (12) 5.75% 9/1/2015 AAA 1,335 1,373,381
New York St Dorm Auth Lease Rev St Univ Dorm
Fac Ser B 5.125% 7/1/2028 A 1,995 1,783,031
New York St Dorm Auth Lease Rev St Univ Dorm Fac Ser A 6.00% 7/1/2030 A 3,500 3,578,750
New York St Dorm Auth Lease Rev St Univ Dorm Fac Ser A 6.25% 7/1/2020 A 1,250 1,318,750
New York St Dorm Auth Lease Rev St Univ Dorm Fac
Ser C (12) 5.50% 7/1/2029 AAA 290 280,213
New York St Dorm Auth Rev Colgate Univ (12) 6.00% 7/1/2016 AAA 1,000 1,075,000
New York St Dorm Auth Rev Fordham Univ (6) 5.75% 7/1/2015 AAA 1,600 1,640,000
New York St Dorm Auth Rev Long Island Univ (3) 5.125% 9/1/2023 AA 500 450,000
New York St Dorm Auth Rev New York Univ Ser A (2) 5.75% 7/1/2015 AAA 2,000 2,082,500
New York St Dorm Auth Rev Pace Univ (12) 6.00% 7/1/2029 AAA 1,610 1,664,338
New York St Dorm Auth Rev Pratt Institute (3) 6.00% 7/1/2024 AA 1,000 1,020,000
New York St Dorm Auth Rev Pratt Institute (3) 6.00% 7/1/2028 AA 2,000 2,045,000
New York St Dorm Auth Rev Sp Act Sch Dist Prog (12) 6.00% 7/1/2016 AAA 1,400 1,454,250
New York St Dorm Auth Rev St Univ Ed Fac 5.50% 5/15/2026 A 75 72,375
New York St Dorm Auth Rev St Univ Ed Fac Ser A 5.25% 5/15/2021 A 1,025 975,031
New York St Dorm Auth Rev Univ Rochester Ser A 6.40% 7/1/2013 A+ 2,030 2,161,950
New York St Dorm Auth Rev Upstate Cmnty College
Ser A (12) 5.00% 7/1/2028 AAA 6,000 5,377,496
New York St Dorm Auth Rev St Univ Adl Fac Ser B (9) 5.75% 5/15/2017 AAA 1,570 1,619,063
Puerto Rico Ind Tourist Ed Med & Envr Ctrl Fac Ana G
Mendez Univ Sys Proj 5.375% 2/1/2019 BBB 320 299,600
Tompkins Cnty NY Ind Dev Agy Rev Civic Fac
Cornell Univ Lake 5.75% 7/1/2030 Aa1 1,500 1,507,500
==========
Total 33,345,353
------------------------------------------------------------------------------------------------------------------------------------
General Bethlehem NY AMT# (12) 7.20% 3/1/2022 AAA 1,080 1,183,950
Obligation Buffalo NY Gen Impt Ser A (2) 4.75% 2/1/2019 AAA 225 198,000
11.25% New York NY Ser C 5.00% 8/15/2028 A 3,900 3,417,375
New York NY Ser H 5.00% 3/15/2021 A 3,000 2,711,250
Puerto Rico Comwlth (12) 5.00% 7/1/2024 AAA 1,000 930,000
Puerto Rico Comwlth (12) 5.00% 7/1/2027 AAA 605 558,113
Puerto Rico Comwlth RIBs+ 6.521% 7/1/2029 A* 1,000 1,062,500
Puerto Rico Comwlth RIBs+ (9) 7.329% 7/1/2020 AAA 12,000 12,285,000
Puerto Rico Comwlth Pub Impt (12) 5.00% 7/1/2028 AAA 1,000 921,250
Puerto Rico Comwlth Pub Impt 5.25% 7/1/2018 A 2,000 1,985,000
Puerto Rico Comwlth Pub Impt (12) 5.75% 7/1/2026 AAA 1,000 1,022,500
==========
Total 26,274,938
------------------------------------------------------------------------------------------------------------------------------------
Healthcare New York NY City Hlth & Hosp Corp Rev RIBs+ (2) 6.826% 2/15/2023 AAA 6,300 5,937,750
6.53% New York St Dorm Auth Rev Mental Hlth Svc Fac (12) 6.00% 8/15/2012 AAA 1,460 1,574,975
New York St Dorm Auth Rev Mental Hlth Svc Fac Impt
Ser B (12) 6.00% 2/15/2025 AAA 1,000 1,035,000
New York St Dorm Auth Rev Mental Hlth Svc Fac Impt
Ser B (12) 6.00% 2/15/2030 AAA 1,000 1,032,500
New York St Dorm Auth Rev Mental Hlth Svc Fac Ser B 5.75% 2/15/2010 A 1,500 1,573,125
New York St Dorm Auth Rev Mental Hlth Svc Fac Ser D (12) 6.00% 8/15/2021 AAA 1,000 1,031,250
New York St Dorm Auth Rev Miriam Osborn Mem Home
Ser B (1) 6.875% 7/1/2025 A 750 794,063
See Notes to Financial Statements 9
<PAGE>
Schedule of Investments (continued)
NEW YORK TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
New York St Dorm Auth Rev Mount Sinai Hlth Ser A 6.50% 7/1/2025 BB+ $ 1,900 $ 1,957,000
New York St Med Care Fac Fin Agy Rev 7.80% 2/15/2019 A 315 318,093
==========
Total 15,253,756
------------------------------------------------------------------------------------------------------------------------------------
Housing New York St Mtg Agy Rev Home Owner Mtg Ser 44 AMT# 7.50% 4/1/2026 Aa1 1,620 1,713,150
0.93% New York St Mtg Agy Rev Home Owner Mtg Ser 67 AMT# 5.80% 10/1/2028 Aa1 400 391,000
New York St Mtg Agy Rev Home Owner Mtg Ser 70 5.40% 4/1/2022 Aa1 70 67,813
==========
Total 2,171,963
------------------------------------------------------------------------------------------------------------------------------------
Industrial New York St Urban Dev Corp Rev Correctl Fac Svc Contrct
4.92% Ser A (9) 5.00% 1/1/2028 AAA 2,000 1,795,000
New York St Urban Dev Corp Rev Correctl Fac Svc Contrct
Ser B (2) 4.75% 1/1/2028 AAA 5,920 5,039,400
New York St Urban Dev Corp Rev St Fac 5.70% 4/1/2020 A 4,150 4,207,063
Suffolk Cnty NY Ind Dev Agy Civic Fac Rev S
Cntry Library (12) 4.75% 1/1/2019 Aaa 500 443,125
==========
Total 11,484,588
------------------------------------------------------------------------------------------------------------------------------------
Miscell- New York City Transitional Fin Auth Rev Future Tax
aneous 2nd Ser B 6.00% 11/15/2024 Aa2 350 361,374
6.69% New York City Transitional Fin Auth Rev Future Tax
2nd Ser B 6.00% 11/15/2029 Aa2 2,000 2,057,500
New York City Transitional Fin Auth Rev Future Tax
2nd Ser C 5.00% 5/1/2029 Aa2 1,000 882,500
New York St Dorm Auth Lease Rev Court Fac Zero Coupon 8/1/2019 Aa1 1,810 615,400
New York St Dorm Auth Lease Rev Court Fac Zero Coupon 8/1/2021 Aa1 4,000 1,205,000
New York St Dorm Auth Lease Rev Court Fac Zero Coupon 8/1/2022 Aa1 3,165 894,113
New York St Dorm Auth Rev Office Gen Svc (12) 5.00% 4/1/2028 AAA 5,000 4,450,000
Puerto Rico Pub Bldg Auth Rev Govt Fac Ser B (2) 5.00% 7/1/2027 AAA 5,595 5,161,388
==========
Total 15,627,275
------------------------------------------------------------------------------------------------------------------------------------
Pollution New York St Enrg Res & Dev Auth Poll Ctrl Rev
9.93% Niagara Mohawk Ser A (6) 7.20% 7/1/2029 AAA 11,750 12,880,938
New York St Envr Fac Poll Ctrl Rev St Wtr
Revolving Fd Ser A 7.50% 6/15/2012 AAA 8,000 8,184,800
New York St Envr Fac Poll Ctrl Rev St Wtr Ser E 6.875% 6/15/2014 Aa1 1,985 2,136,356
==========
Total 23,202,094
------------------------------------------------------------------------------------------------------------------------------------
Power New York St Enrg Res & Dev Auth Fac Rev Con Edison Inc
9.90% Ser A AMT# (12) 7.125% 12/1/2029 AAA 2,500 2,737,500
New York St Enrg Res & Dev Auth Gas Fac Rev Brooklyn
Union Ser B RIBs AMT# + 9.077% 7/1/2026 A 4,000 4,630,000
Puerto Rico Elec Pwr Auth Pwr Rev Ser DD 5.00% 7/1/2028 A- 250 225,000
Puerto Rico Elec Pwr Auth Pwr Rev Ser DD (9) 5.00% 7/1/2028 AAA 1,000 921,250
Puerto Rico Elec Pwr Auth Pwr Rev Ser DD (12) 5.00% 7/1/2028 AAA 2,000 1,842,500
Puerto Rico Elec Pwr Auth Pwr Rev Ser EE (9) 4.75% 7/1/2024 AAA 3,000 2,662,500
Puerto Rico Elec Pwr Auth Pwr Rev Ser HH (9) 5.25% 7/1/2029 AAA 8,000 7,630,000
Puerto Rico Elec Pwr Auth Pwr Rev Ser X 6.00% 7/1/2015 A- 2,375 2,475,938
==========
Total 23,124,688
------------------------------------------------------------------------------------------------------------------------------------
Prere- Metropolitan Transn Auth NY Commuter Fac Rev Ser A (6) 6.00% 7/1/2021 AAA 4,000 4,345,000
funded Metropolitan Transn Auth NY Commuter Fac Rev Ser A (6) 6.10% 7/1/2026 AAA 2,000 2,182,500
11.52% New York St Dorm Auth Rev City Univ Gen Res Ser 2 (12) 6.875% 7/1/2014 AAA 5,650 6,207,938
New York St Dorm Auth Rev Upstate Cmnty Colleges
Ser A 6.20% 7/1/2015 AAA 1,000 1,087,500
New York St Envr Fac Poll Ctrl Rev St Wtr Ser E 6.875% 6/15/2014 AAA 2,795 3,057,031
New York St Med Care Fac Fin Agy Rev 7.50% 2/15/2021 AAA 3,955 4,066,729
Puerto Rico Comwlth Aqueduct & Swr Auth Rev ETM 10.25% 7/1/2009 AAA 925 1,173,594
10 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
NEW YORK TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Puerto Rico Elec Pwr Auth Pwr Rev Ser T RIBs (9)+ 8.094% 7/1/2018 AAA $ 3,500 $ 4,055,624
Puerto Rico Tel Auth Rev RIBs (12)+ 6.82% 1/16/2015 AAA 700 749,000
==========
Total 26,924,916
------------------------------------------------------------------------------------------------------------------------------------
Transpor- Metropolitan Transn Auth NY Commuter Fac Rev Ser A (6) 6.00% 7/1/2016 AAA 2,000 2,092,500
tation Metropolitan Transn Auth NY Commuter Fac Rev Ser B (6) 4.75% 7/1/2026 AAA 7,030 6,028,225
19.10% Metropolitan Transn Auth NY Dedicated Tax Fd Ser A (6) 4.75% 4/1/2028 AAA 2,500 2,131,250
Metropolitan Transn Auth NY Dedicated Tax Fd Ser A (6) 6.00% 4/1/2030 AAA 3,800 3,923,500
Metropolitan Transn Auth NY Svc Contrct Transn Fac Ser O 5.75% 7/1/2008 A 1,000 1,048,750
Metropolitan Transn Auth NY Transn Fac Rev Svc Contrct Ser R 5.50% 7/1/2017 A 1,000 987,500
New York NY City Transn Auth RIBs (2)+ 7.25% 1/1/2030 AA* 5,000 5,175,000
Niagara NY Frontier Auth Arpt Buffalo Niagara Intl Arpt
Ser B (12) 5.50% 4/1/2019 AAA 690 681,375
Port Auth NY & NJ Cons 106th Ser AMT# 6.00% 7/1/2015 AA- 350 362,688
Port Auth NY & NJ Cons 114th Ser (12) 4.75% 8/1/2033 AAA 1,900 1,605,500
Port Auth NY & NJ Cons 93rd Ser 6.125% 6/1/2094 AA- 5,000 5,275,000
Port Auth NY & NJ Sp Oblig Rev 5th Installment Sp Proj
Ser 4 AMT# 6.75% 10/1/2019 B-* 2,970 3,044,250
Puerto Rico Comwlth Hwy & Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 A 1,000 977,500
Puerto Rico Comwlth Hwy & Transn Auth Transn
Rev Ser A (2) 5.00% 7/1/2028 AAA 2,200 2,026,750
Puerto Rico Comwlth Hwy & Transn Auth Transn
Rev Sub PR St Infrastructure Bk 5.00% 7/1/2028 A- 1,000 900,000
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser B 6.00% 7/1/2026 A 6,000 6,187,500
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser B 6.50% 7/1/2027 A 2,000 2,185,000
==========
Total 44,632,288
------------------------------------------------------------------------------------------------------------------------------------
Water/ Albany NY Muni Wtr Fin Auth Wtr & Swr Sys Rev Ser A (6) 6.375% 12/1/2017 AAA 650 701,188
Sewer Buffalo NY Muni Wtr Fin Auth Wtr Sys Rev (6) 5.75% 7/1/2021 AAA 500 505,625
3.71% Buffalo NY Muni Wtr Fin Auth Wtr Sys Rev (9) 6.00% 7/1/2029 AAA 500 517,500
New York City Muni Wtr Fin Auth Wtr & Swr Sys Rev Ser A (6) 4.75% 6/15/2031 AAA 1,000 843,750
New York City Muni Wtr Fin Auth Wtr & Swr Sys Rev Ser B (6) 5.125% 6/15/2030 AAA 1,000 911,250
New York City Muni Wtr Fin Auth Wtr & Swr Sys Rev Ser B 5.25% 6/15/2029 AA 1,000 928,750
New York City Muni Wtr Fin Auth Wtr & Swr Sys Rev Ser B 6.00% 6/15/2033 AA 4,150 4,264,125
==========
Total 8,672,188
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 98.75% (Cost $225,039,376) 230,714,047
====================================================================================================================================
See Notes to Financial Statements 11
<PAGE>
Schedule of Investments
TEXAS TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education Houston TX Higher Ed Fin Corp Rice Univ Hgr Ed 5.375% 11/15/2029 AAA $4,000 $ 3,760,000
12.24% Texas A & M Univ Rev Fing Sys (12) 5.55% 5/15/2029 AAA 2,000 1,957,500
Texas St Higher Ed Coord Bd College Student Ln Rev AMT# 7.70% 10/1/2025 A 295 303,112
University TX Univ Rev Fin Sys Ser A 5.375% 8/15/2017 AAA 3,130 3,086,963
==========
Total 9,107,575
------------------------------------------------------------------------------------------------------------------------------------
General Azle TX Indpt Sch Dist Ser A 6.00% 2/15/2022 Aaa 250 250,235
Obligation Cedar Hill TX Indpt Sch Dist Zero Coupon 8/15/2020 AAA 2,500 700,000
30.94% Crosby TX Indpt Sch Dst 5.00% 2/15/2024 Aaa 2,000 1,787,500
Cypress-Fairbanks TX Indpt Sch Dist 4.75% 2/15/2022 AAA 1,000 857,500
Gregory Portland TX Indpt Sch Dist 5.50% 8/15/2020 AAA 1,075 1,054,844
Katy TX Indpt Sch Dist 6.125% 2/15/2032 AAA 1,000 1,026,250
Lexington TX Indpt Sch Dist 5.625% 2/15/2030 Aaa 1,130 1,105,988
McAllen TX Indpt Sch Dist 5.25% 4/1/2019 AAA 825 786,844
Pearland TX Indpt Sch Dist 5.125% 2/15/2022 AAA 3,000 2,778,750
Port Beaumont TX Nav Dist Ser A (6) 4.75% 3/1/2018 Aaa 500 441,250
Puerto Rico Comwlth RIBs+ (12) 7.10% 7/1/2026 AAA 500 523,750
San Antonio TX Indpt Sch Dist 5.50% 8/15/2024 AAA 1,000 970,000
Socorro TX Indpt Sch Dist Ref 6.00% 2/15/2015 AAA 920 949,900
Texas St Ser B RIBs+ 7.807% 9/30/2011 Aa1 5,500 6,593,122
Texas St Wtr Dev Bd 7.15% 8/1/2035 Aa1 1,600 1,702,000
Webster TX Ctfs Oblig Ser A (9) 6.00% 3/1/2017 AAA 1,440 1,490,400
==========
Total 23,018,333
------------------------------------------------------------------------------------------------------------------------------------
Healthcare Denton Cnty TX Hlth Fac Dev Corp Rev Lutheran Social Svc 7.50% 8/15/2015 BB* 1,000 995,000
3.17% Georgetown TX Hlth Fac Dev Rev Wesleyan
Homes Inc Proj (1) 5.375% 8/15/2028 A 500 433,125
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl
Fac Hosp De La Concepcion Ser A 6.125% 11/15/2025 Aa2 910 933,888
==========
Total 2,362,013
------------------------------------------------------------------------------------------------------------------------------------
Industrial Lower Neches Valley Auth TX Ind Dev Corp Envr Mobil
13.51% Oil Refining Corp Proj 6.35% 4/1/2026 AAA 1,000 1,027,500
Orange Cnty TX Nav & Port Dist Ind Dev Rev North
Star Steel 6.375% 2/1/2017 A+ 2,400 2,475,000
Texas City TX Ind Dev Corp Marine Term Rev Arco
Pipe Line 7.375% 10/1/2020 AA+ 5,500 6,551,875
==========
Total 10,054,375
------------------------------------------------------------------------------------------------------------------------------------
Pollution Harris Cnty TX Ind Dev Corp Marine Term & Wtr Poll Ctrl 6.625% 2/1/2024 BB+ 1,100 1,116,500
1.50%
------------------------------------------------------------------------------------------------------------------------------------
Power Fort Bend Cnty TX Muni Util Dist #25 (12) 6.00% 10/1/2028 AAA 2,170 2,205,263
6.29% Lubbock TX Elec Lt & Pwr Sys Rev (2) 4.25% 4/15/2018 AAA 460 385,250
Puerto Rico Elec Pwr Auth Pwr Rev Ser EE 4.75% 7/1/2024 A- 750 656,250
Puerto Rico Elec Pwr Auth Pwr Rev Ser HH (9) 5.25% 7/1/2029 AAA 1,500 1,430,625
==========
Total 4,677,388
------------------------------------------------------------------------------------------------------------------------------------
Prere- Austin TX Util Sys Rev Ser A 8.00% 11/15/2016 AAA 1,000 1,021,490
funded Houston TX Wtr & Swr Sys Rev (12) 7.40% 12/1/2018 AAA 1,000 1,024,490
8.49% Houston TX Wtr & Swr Sys Rev Ser A (2) 6.50% 12/1/2021 AAA 335 349,238
Houston TX Wtr & Swr Sys Rev Ser A (2) 6.50% 12/1/2021 AAA 2,665 2,778,262
Texas St Tpk Auth Rev Houston Ship Chan 12.63% 1/1/2020 AAA 995 1,145,494
==========
Total 6,318,974
------------------------------------------------------------------------------------------------------------------------------------
Solid Gulf Coast Waste Disp Auth TX Rev AMT# 5.60% 4/1/2032 BB- 1,000 852,500
Waste
1.15%
------------------------------------------------------------------------------------------------------------------------------------
12 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
TEXAS TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Transpor- Austin TX Arpt Sys Rev Prior Lien Ser A AMT# (12) 6.125% 11/15/2025 AAA $2,500 $ 2,553,125
tation Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser B 6.00% 7/1/2031 A 1,480 1,544,750
8.27% Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser C 6.00% 7/1/2029 A 1,000 1,043,750
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Transn
Rev Ser PMD-9 RIBs+ (9) 7.60% 7/1/2026 AAA 950 1,011,750
==========
Total 6,153,375
------------------------------------------------------------------------------------------------------------------------------------
Water/ Coastal Wtr Auth Tex Contract City of Houston Proj (9) 5.00% 12/15/2025 AAA 2,500 2,250,000
Sewer Houston TX Wtr & Swr Sys Rev Ref Jr Lien Ser A (6) 5.375% 12/1/2027 AAA 1,800 1,703,250
11.36% Midlothian TX Water Dist (9) Zero Coupon 9/1/2022 AAA 2,000 532,500
Upper Trinity Regl Wtr Dist TX Wtr Sys Rev Ser 4 (6) 6.00% 8/1/2026 AAA 3,025 3,100,625
Victoria TX Util Sys Rev (12) 4.75% 12/1/2022 AAA 1,000 865,000
==========
Total 8,451,375
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 96.92% (Cost $70,337,891) $72,112,408
====================================================================================================================================
Schedule of Investments
NEW JERSEY TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education Higher Ed Student Assistance Auth NJ Student Loan
7.84% Rev Ser A AMT# (12) 6.15% 6/1/2019 AAA $1,000 $ 1,030,000
New Jersey Econ Dev Auth Sch Rev Princeton Jr
Sch Inc 1996 Proj 7.00% 5/1/2020 BB* 1,800 1,869,750
New Jersey St Ed Fac Auth Rev Princeton Univ Ser A 5.00% 7/1/2029 AAA 145 130,681
New Jersey St Ed Fac Auth Rev Rowan Univ Ser B (6) 5.375% 7/1/2025 AAA 1,500 1,447,200
New Jersey St Ed Fac Auth Rev Trenton State College Ser E (2) 6.00% 7/1/2019 AAA 1,190 1,209,338
Rutgers St Univ NJ Ser A (2) 4.75% 5/1/2029 AAA 3,000 2,538,750
University Puerto Rico Rev Univ Rev Ser O (12) 5.375% 6/1/2030 AAA 3,750 3,618,750
==========
Total 11,844,469
------------------------------------------------------------------------------------------------------------------------------------
Finance Puerto Rico Comwlth Infrastructure Fin Auth Ser A 5.50% 10/1/2040 AAA 5,000 4,912,500
3.25%
------------------------------------------------------------------------------------------------------------------------------------
General Keansburg NJ 6.80% 12/1/2010 Aa2 1,000 1,061,250
Obligation Marlboro Township NJ Brd Ed (9) 5.25% 7/15/2017 AAA 1,000 981,250
18.58% Millburn Township NJ Sch Dist 5.35% 7/15/2018 Aaa 1,050 1,042,125
Millburn Township NJ Sch Dist 5.35% 7/15/2019 Aaa 250 247,188
Morristown NJ (9) 6.50% 8/1/2019 AAA 3,440 3,676,500
New Jersey St 4.50% 2/1/2019 Aa1 260 222,950
Ocean Cnty NJ Gen Impt 5.125% 9/1/2020 Aa1 1,800 1,710,000
Paterson NJ (9) 9.30% 2/15/2004 AAA 4,200 4,814,250
Puerto Rico Comwlth (12) 5.00% 7/1/2024 AAA 2,000 1,860,000
Puerto Rico Comwlth RIBs+ 6.521% 7/1/2029 A* 750 796,875
Puerto Rico Comwlth RIBs+ (12) 7.231% 7/1/2008 AAA 5,000 5,312,499
Puerto Rico Comwlth Pub Impt 4.50% 7/1/2023 A 2,000 1,682,500
Puerto Rico Comwlth Pub Impt (12) 4.75% 7/1/2023 AAA 1,550 1,377,563
South Brunswick Township NJ Brd Ed (6) 5.625% 12/1/2023 AAA 45 45,225
Summit NJ 5.70% 6/1/2020 AAA 325 329,469
Toms River NJ Sch Dist Regl Sch (6) 5.00% 7/15/2022 AAA 115 104,794
Union Cnty NJ Gen Impt 5.125% 2/1/2018 Aaa 485 465,600
See Notes to Financial Statements 13
<PAGE>
Schedule of Investments (continued)
NEW JERSEY TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
West Deptford Township NJ (6) 5.50% 9/1/2025 Aaa $2,000 $ 1,960,000
Winslow Township NJ Sch Dist (6) 5.20% 8/1/2017 AAA 390 379,275
==========
Total 28,069,313
------------------------------------------------------------------------------------------------------------------------------------
Healthcare Camden Cnty NJ Impt Auth Rev Hlth Care Proj Cooper (1) 6.00% 2/15/2027 A 7,510 7,500,610
13.55% New Jersey Hlth Care Fac Fin Auth Rev Bayonne Hosp (9) 6.25% 7/1/2012 AAA 1,370 1,455,625
New Jersey Hlth Care Fac Fin Auth Rev Hunterdon
Med Ctr Ser A (2) 7.00% 7/1/2020 AAA 5,000 5,119,750
New Jersey Hlth Care Fac Fin Auth Rev Robert
Wood Johnson Univ Hosp 5.75% 7/1/2031 A+ 2,750 2,681,250
New Jersey Hlth Care Fac Fin Auth Rev Spectrum
For Living Ser B (7) 6.50% 2/1/2022 AAA 870 899,363
New Jersey Hlth Care Fac Fin Auth Rev St Barnabas
Hlth Ser B (12) Zero Coupon 7/1/2022 AAA 1,130 319,225
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl
Fac Hosp De La Concepcion Ser A 6.125% 11/15/2025 Aa2 415 425,894
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl
Fac Hosp De La Concepcion Ser A 6.125% 11/15/2030 Aa2 1,000 1,025,000
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl
Facs Rev Hosp Mutuo Oblig Grp Ser A (12) 6.25% 7/1/2024 AAA 1,000 1,042,500
==========
Total 20,469,217
------------------------------------------------------------------------------------------------------------------------------------
Housing Puerto Rico Hsg Fin Corp Sing Fam Mtg Rev
0.19% Portfolio 1 Ser B (10) 7.65% 10/15/2022 AAA 60 61,350
Virgin Islands Hsg Fin Auth Sing Fam
Rev Ser A AMT# (10) 6.50% 3/1/2025 AAA 215 220,913
==========
Total 282,263
------------------------------------------------------------------------------------------------------------------------------------
Industrial New Jersey Econ Dev Auth Wtr Fac Rev American
4.84% Wtr Co Inc Ser B AMT# (6) 5.375% 5/1/2032 AAA 5,000 4,650,000
New Jersey Econ Dev Auth Wtr Fac Rev Middlesex
Wtr Co Proj AMT# (12) 5.35% 2/1/2038 AAA 2,900 2,668,000
==========
Total 7,318,000
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Carteret NJ Bd Ed Ctfs Partn (12) 5.75% 1/15/2030 Aaa 580 580,725
aneous Carteret NJ Bd Ed Ctfs Partn (12) 6.00% 1/15/2024 Aaa 430 444,513
8.76% Casino Reinvestment Dev Auth NJ Pkg Fee Rev Ser A (9) 5.25% 10/1/2015 AAA 150 148,313
Hamilton Township NJ Brd Ed Ctfs Partn Ser B (9) 7.00% 12/15/2015 AAA 970 1,001,234
Hudson Cnty NJ Impt Auth Lease Rev N Hudson
Regl Fire & Rescue Ser A (2) 5.625% 9/1/2019 Aaa 160 160,400
Lafayette Yard NJ Cmnty Dev Hotel/Conf Ctr Proj (12) 5.625% 4/1/2021 Aaa 200 201,750
Monmouth Cnty NJ Impt Auth Rev Govt Ln (12) 6.40% 12/1/2009 AAA 1,075 1,166,375
New Jersey Bldg Auth St Bldg Rev 5.375% 6/15/2019 Aa2 450 439,875
New Jersey Econ Dev Auth Rev Station Plaza
Park & Ride LP Proj AMT# 7.00% 7/1/2016 BB* 4,245 4,420,104
New Jersey Sports & Exposition Auth St Contract Ser A (12) 4.50% 3/1/2024 AAA 2,680 2,217,700
North Bergen Twp NJ Bd Ed Ctfs Partn (9) 6.125% 12/15/2022 Aaa 1,185 1,242,769
Rahway NJ Ctfs Partn (12) 5.625% 2/15/2020 Aaa 365 364,088
Salem Cnty NJ Impt Auth Rev Fin Auth Correctional
Fac & Court House (6) 5.00% 5/1/2018 Aaa 910 838,338
==========
Total 13,226,184
------------------------------------------------------------------------------------------------------------------------------------
Pollution Cape May Cnty NJ Ind Poll Ctrl Fin Auth Rev Atlantic
0.36% City Elec Co Proj Ser B (12) 7.00% 11/1/2029 50 539,375
------------------------------------------------------------------------------------------------------------------------------------
Power Puerto Rico Elec Pwr Auth Pwr Rev Ser HH (9) 5.25% 7/1/2029 AAA 3,000 2,861,250
1.89%
------------------------------------------------------------------------------------------------------------------------------------
14 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
NEW JERSEY TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Prere- Essex Cnty NJ Impt Auth Rev Orange Muni Util & Lease (12) 6.80% 7/1/2014 AAA $1,710 $ 1,898,100
funded New Jersey Hlth Care Fac Fin Auth Rev Bayonne
16.15% Hosp Oblig (9) 6.25% 7/1/2012 AAA 230 247,250
New Jersey Hlth Care Fac Fin Auth Rev Mtg Cathedral
Hlth Ser A (7) 7.25% 2/15/2021 AAA 1,485 1,529,431
New Jersey Sports & Exposition Auth Rev Monmouth Park
Ser A 8.00% 1/1/2025 AAA 3,600 4,122,000
Pohatcong Township NJ Sch Dist (9) 5.95% 7/15/2023 AAA 650 703,625
Pohatcong Township NJ Sch Dist (9) 5.95% 7/15/2026 AAA 250 270,625
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser T 6.625% 7/1/2018 Aaa 283 298,692
Puerto Rico Elec Pwr Auth Pwr Rev RIBs (9)+ 7.378% 7/1/2023 AAA 5,000 5,400,000
Puerto Rico Elec Pwr Auth Pwr Rev Ser T RIBs (9)+ 8.094% 7/1/2018 AAA 7,000 8,111,250
Puerto Rico Pub Bldg Auth Pub Ed & Hlth Fac Ser L 6.875% 7/1/2021 AAA 200 211,750
Puerto Rico Tel Auth Rev RIBs (12)+ 6.82% 1/16/2015 AAA 1,500 1,605,000
==========
Total 24,397,723
------------------------------------------------------------------------------------------------------------------------------------
Transpor- Puerto Rico Comwlth Hwy & Transn Auth Transn
tation Rev Transn Rev Ser PMD-9 RIBs+ (9) 7.60% 7/1/2026 AAA 500 532,500
20.68% New Jersey Econ Dev Auth Rev Dept of Human Svc Ser A 6.25% 7/1/2024 A 85 89,250
New Jersey St Hwy Auth Garden St Pkwy Gen Rev (6) 5.75% 1/1/2015 AAA 200 207,750
New Jersey St Tpk Auth Tpke Rev Ser A 5.50% 1/1/2027 A- 3,000 2,917,500
New Jersey St Transn Tr Fd Auth Transn Sys Ser A (9) 4.50% 6/15/2019 AAA 6,550 5,608,438
New Jersey St Transn Tr Fd Auth Transn Sys Ser A 6.00% 6/15/2019 Aa2 6,500 6,768,125
New Jersey St Transn Tr Fd Auth Transn Sys Ser B 6.00% 6/15/2006 Aa2 2,615 2,787,145
Port Auth NY & NJ Cons 112th Ser AMT# 5.00% 12/1/2016 AA- 1,000 918,750
Port Auth NY & NJ Cons 114th Ser (12) 4.75% 8/1/2033 AAA 635 536,575
Port Auth NY & NJ Cons 117th Ser Sec Installment AMT# (6) 4.75% 11/15/2016 AAA 725 652,500
Port Auth NY & NJ Cons 119th Ser AMT# (6) 5.50% 9/15/2019 AAA 150 146,625
Port Auth NY & NJ RIBs+ 3.933% 8/1/2033 AA* 2,500 1,725,000
Puerto Rico Comwlth Hwy & Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A 380 371,925
Puerto Rico Comwlth Hwy & Transn Auth Ser B (12) 6.00% 7/1/2026 AAA 3,015 3,109,219
Puerto Rico Comwlth Hwy & Transn Auth Transn
Rev Ser A (12) 4.75% 7/1/2038 AAA 2,365 2,036,856
Puerto Rico Comwlth Hwy & Transn Auth Transn
Rev Ser B 6.00% 7/1/2026 A 1,000 1,031,250
South Jersey NJ Port Corp Rev Marine Terminal Ser J (12) 5.10% 1/1/2016 AAA 750 721,875
Trenton NJ Pkg Auth Pkg Rev (6) 6.00% 4/1/2017 Aaa 1,000 1,068,750
==========
Total 31,230,033
------------------------------------------------------------------------------------------------------------------------------------
Water/ Bayonne NJ Muni Util Auth Wtr Sys Rev (12) 5.00% 1/1/2017 Aaa 1,000 943,750
Sewer Middlesex Cnty NJ Impt Auth Util Sys Rev Perth Amboy
3.75% Franchise Proj Ser B (2) Zero Coupon 9/1/2023 AAA 3,000 798,750
Middlesex Cnty NJ Impt Auth Util Sys Rev Perth Amboy
Franchise Proj Ser B (2) Zero Coupon 9/1/2024 AAA 6,000 1,500,000
Middlesex Cnty NJ Impt Auth Util Sys Rev Perth Amboy
Franchise Proj Ser A (2) 5.00% 9/1/2029 AAA 2,450 2,183,563
New Jersey Wastewtr Treatment Trust 6.875% 6/15/2009 Aa2 155 158,754
New Jersey Wastewtr Treatment Trust Ser A MBIA (12) 7.00% 5/15/2006 AAA 75 76,308
==========
Total 5,661,125
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 99.84% (Cost $147,855,497) 150,811,452
====================================================================================================================================
See Notes to Financial Statements 15
<PAGE>
Schedule of Investments
CONNECTICUT TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education Connecticut St Hlth & Ed Fac Auth Rev RIBs+ 7.224% 6/10/2030 AAA $6,800 $ 6,842,499
32.56% Connecticut St Hlth & Ed Fac Auth Rev Brunswick
Sch Ser A (12) 5.00% 7/1/2029 AAA 1,560 1,394,250
Connecticut St Hlth & Ed Fac Auth Rev Fairfield
Univ Ser I (12) 5.50% 7/1/2029 AAA 1,235 1,207,213
Connecticut St Hlth & Ed Fac Auth Rev Miss Porters
Sch Ser A 5.75% 7/1/2029 A+ 3,000 3,014,999
Connecticut St Hlth & Ed Fac Auth Rev Sacred Heart
Univ Issue Ser C 6.50% 7/1/2016 BB- 275 281,531
Connecticut St Hlth & Ed Fac Auth Rev Sacred Heart
Univ Issue Ser E (3) 5.00% 7/1/2028 AA 460 402,500
Connecticut St Hlth & Ed Fac Auth Rev Salisbury Sch
Issue Ser A (3) 4.75% 7/1/2028 AA 3,005 2,546,737
Connecticut St Hlth & Ed Fac Auth Rev St Joseph
College Ser A (3) 5.00% 7/1/2018 AA 485 444,988
Connecticut St Hlth & Ed Fac Auth Rev St Joseph
College Ser A (3) 5.00% 7/1/2019 AA 565 509,206
Connecticut St Hlth & Ed Fac Auth Rev Suffield
Academy Ser A (12) 5.40% 7/1/2027 AAA 1,350 1,294,313
Connecticut St Hlth & Ed Fac Auth Rev Trinity
College Ser E (12) 5.875% 7/1/2026 AAA 1,000 1,016,250
Connecticut St Hlth & Ed Fac Auth Rev Univ CT Fndtn Ser A 5.375% 7/1/2029 A+ 660 622,875
Connecticut St Hlth & Ed Fac Auth Rev Univ New Haven
Issue D (1) 6.70% 7/1/2026 A 1,000 1,038,750
Connecticut St Hlth & Ed Fac Auth Rev Child Care
Fac Prog Subser A (2) 5.00% 7/1/2028 AAA 1,530 1,357,875
Connecticut St Hlth & Ed Fac Auth Rev Choate Rosemary
Hall Issue Ser B (12) 5.00% 7/1/2027 AAA 2,000 1,785,000
Connecticut St Hlth & Edl Fac Auth Rev Quinnipiac
College Ser E (1) 4.75% 7/1/2028 AAA 1,730 1,468,338
Connecticut St Hsg Fin Auth Hsg Mtg Fin Ser A
Subser A-2 AMT# 6.45% 5/15/2022 Aa2 820 839,475
University CT Rev Student Fee Ser A (12) 4.75% 11/15/2024 AAA 1,000 862,500
University CT Rev Student Fee Ser A (12) 4.75% 11/15/2027 AAA 1,500 1,278,750
University CT Rev Student Fee Ser A (6) 5.75% 11/15/2020 AAA 205 208,075
University CT Rev Student Fee Ser A 6.00% 11/15/2021 AA- 390 402,188
University CT Rev Student Fee Ser A (6) 6.00% 11/15/2025 AAA 500 518,750
University CT Ser A (6) 5.625% 3/1/2020 AAA 1,000 1,010,000
University Puerto Rico Rev Univ Rev Ser O (12) 5.375% 6/1/2030 AAA 1,250 1,206,250
==========
Total 31,553,312
------------------------------------------------------------------------------------------------------------------------------------
Finance Puerto Rico Comwlth Infrastructure Fin Auth Ser A 5.50% 10/1/2040 AAA 1,250 1,228,125
1.27%
------------------------------------------------------------------------------------------------------------------------------------
General Connecticut St Ser A 5.00% 6/15/2018 AA 1,285 1,207,900
Obligation Connecticut St Ser A 5.625% 4/15/2020 AA 1,000 1,008,750
12.99% Connecticut St Ser A 6.00% 4/15/2015 AA 1,000 1,070,000
Connecticut St Ser B 5.60% 6/15/2020 AA 250 251,563
Connecticut St Ser C 4.50% 10/15/2015 AA 1,000 893,750
Connecticut St Ser C 4.50% 10/15/2016 AA 500 443,750
Hartford CT 6.50% 12/15/2005 AA- 730 793,875
Killingly CT 7.25% 12/15/2004 A1 250 253,855
Monroe CT 6.60% 4/15/2005 Aa2 100 108,250
Montville CT 6.70% 6/15/2009 Aa3 550 624,938
Montville CT 6.70% 6/15/2010 Aa3 575 656,938
Portland CT 7.10% 12/15/2000 A2 100 100,558
Puerto Rico Comwlth (12) 5.00% 7/1/2024 AAA 1,000 930,000
16 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
CONNECTICUT TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Puerto Rico Comwlth (9) 5.375% 7/1/2025 AAA $ 750 $ 735,000
Puerto Rico Comwlth Pub Impt Zero Coupon 7/1/2018 A 2,000 727,500
Puerto Rico Comwlth Pub Impt 4.50% 7/1/2023 A 500 420,625
Puerto Rico Comwlth Pub Impt (9) 5.00% 7/1/2028 AAA 2,090 1,925,411
Redding CT 6.60% 4/15/2010 Aa1 100 113,875
Voluntown CT 6.75% 10/1/2002 A3 100 104,250
Watertown CT 6.50% 6/15/2003 Aa3 100 105,000
West Haven CT (12) 6.50% 6/15/2006 AAA 100 109,125
==========
Total 12,584,913
------------------------------------------------------------------------------------------------------------------------------------
Healthcare Connecticut St Hlth & Ed Fac Auth Rev Bridgeport
5.87% Hosp Ser A (12) 6.625% 7/1/2018 AAA 1,250 1,296,875
Connecticut St Hlth & Ed Fac Auth Rev Catholic
Hlth East Ser F (12) 5.625% 11/15/2020 AAA 325 322,969
Connecticut St Hlth & Ed Fac Auth Rev Child Care
Fac Prog Ser C (2) 5.625% 7/1/2029 AAA 1,000 982,500
Connecticut St Hlth & Edl Fac Auth Rev Hosp For
Sp Care Ser B 5.50% 7/1/2027 BBB 1,895 1,551,530
Connecticut St Hlth & Ed Fac Auth Rev Waterbury
Hosp Issue Ser C (3) 5.75% 7/1/2029 AA 650 642,688
Connecticut St Hlth & Edl Fac Auth Rev Windham
Cmnty Mem Hosp Ser C 6.00% 7/1/2020 BB- 1,000 895,000
==========
Total 5,691,562
------------------------------------------------------------------------------------------------------------------------------------
Housing Connecticut St Hsg Fin Auth Amt Hsg Mtg Fin
3.30% Ser C-2 AMT# 6.00% 11/15/2020 Aa2 1,000 1,017,500
Connecticut St Hsg Fin Auth Hsg Mtg Fin Prog Ser B 6.75% 11/15/2023 Aa2 1,605 1,679,231
Connecticut St Hsg Fin Auth Spl Oblig Grp Home
Mtg Ser GH-5 (2) 5.85% 6/15/2030 AAA 500 503,125
==========
Total 3,199,856
------------------------------------------------------------------------------------------------------------------------------------
Industrial Connecticut St Dev Auth Govt (12) 6.60% 6/15/2014 AAA 500 535,625
12.82% Connecticut St Dev Auth Ind Dev Rev Watson Foods
Co Inc Proj AMT# 5.90% 6/1/2028 BB- 705 628,331
Connecticut St Dev Auth Poll Ctrl Rev Pfizer Inc Proj 6.55% 2/15/2013 AAA 3,570 3,752,963
Connecticut St Dev Auth Solid Waste Disp Fac Rev
Pfizer Inc Proj AMT# 7.00% 7/1/2025 AAA 2,500 2,718,750
Connecticut St Res Recovery Auth American Fuel Co
Proj Ser A AMT# 6.45% 11/15/2022 BB- 4,985 4,791,831
==========
Total 12,427,500
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Connecticut St Dev Auth Aquarium Rev Mystic
aneous Marinelife Aquarium Proj Ser A 7.00% 12/1/2027 BB* 1,500 1,520,625
10.13% New Haven CT Air Rights Pkg Fac Rev (12) 6.50% 12/1/2015 AAA 8,025 8,295,844
==========
Total 9,816,469
------------------------------------------------------------------------------------------------------------------------------------
Power Puerto Rico Elec Pwr Auth Pwr Rev Ser DD (12) 5.00% 7/1/2028 AAA 3,000 2,763,750
3.84% Puerto Rico Elec Pwr Auth Pwr Rev Ser HH (9) 5.25% 7/1/2029 AAA 1,000 953,750
==========
Total 3,717,500
------------------------------------------------------------------------------------------------------------------------------------
Prere- Connecticut St Hlth & Edl Fac Auth Rev Sacred Heart Ser C 6.50% 7/1/2016 AAA 725 798,406
funded Connecticut St Sp Tax Oblig Rev (6) 6.10% 10/1/2011 AAA 1,000 1,065,000
8.57% Darien CT 5.50% 10/15/2015 AAA 500 524,375
Puerto Rico Comwlth 6.00% 7/1/2026 AAA 1,000 1,105,000
Puerto Rico Comwlth 6.45% 7/1/2017 AAA 2,000 2,175,000
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser T 6.625% 7/1/2018 Aaa 67 70,558
Puerto Rico Comwlth Hwy & Transn Auth Hwy Rev Ser T 6.625% 7/1/2018 AAA 3 3,292
Puerto Rico Elec Pwr Auth Pwr Rev Ser X 6.125% 7/1/2021 Aaa 750 821,250
See Notes to Financial Statements 17
<PAGE>
Schedule of Investments (continued)
CONNECTICUT TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Puerto Rico Elec Pwr Auth Pwr Rev Ser T RIBs (9)+ 8.094% 7/1/2018 AAA $1,500 $ 1,738,125
==========
Total 8,301,006
------------------------------------------------------------------------------------------------------------------------------------
Solid Eastern CT Res Recov Auth Solid Waste Rev Wheelabrator
Waste Libson Proj Ser A AMT# 5.50% 1/1/2020 BBB 3,940 3,265,275
3.37%
------------------------------------------------------------------------------------------------------------------------------------
Transpor- Hartford CT Pkg Sys Rev Ser A 6.50% 7/1/2025 BBB 500 500,625
tation Puerto Rico Comwlth Hwy & Transn Auth Transn
1.56% Rev Ser A (12) 4.75% 7/1/2038 AAA 1,170 1,007,663
==========
Total 1,508,288
------------------------------------------------------------------------------------------------------------------------------------
Water/ Connecticut St Dev Auth Wtr Fac Rev The CT Wtr Co
Sewer Proj Ser A AMT# (2) 5.75% 7/1/2028 AAA 250 248,125
2.78% Connecticut St Dev Auth Wtr Fac Rev Brdgprt
Bridgeport AMT# (2) 6.15% 4/1/2035 AAA 500 516,250
South Cent CT Regl Wtr Auth Sys Rev 16th Ser (2) 5.375% 8/1/2025 AAA 1,000 970,000
South Cent CT Regl Wtr Auth Sys Rev 16th Ser (2) 5.375% 8/1/2030 AAA 1,000 963,750
==========
Total 2,698,125
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 99.06% (Cost $96,205,990) $95,991,931
====================================================================================================================================
Schedule of Investments
MISSOURI TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education Bowling Green MO Sch Dist R-I Bldg Corp Leasehold Rev (12) 5.85% 3/1/2020 Aaa $1,000 $ 1,017,500
11.17% Kansas City MO Sch Dist Bldg Elem Sch Proj Ser D (6) 5.00% 2/1/2014 AAA 2,000 1,952,500
Missouri St Hlth & Ed Fac Auth Ed Fac Rev Maryville
Univ of St. Louis Proj 6.50% 6/15/2022 aa1 750 782,813
Missouri St Hlth & Ed Fac Auth Ed Fac Rev Washington
Univ Ser A 4.75% 11/15/2037 Aa1 3,000 2,478,749
Missouri St Hlth & Ed Fac Auth Ed Fac Rev Washington
Univ Ser A 6.00% 3/1/2030 Aa1 850 875,500
Missouri St Hlth & Ed Fac Auth Ed Fac Rev William
Jewell College (1) 6.125% 8/1/2019 A 800 803,000
Missouri St Hlth & Ed Fac Auth Edu Fac Rev Maryville
Univ St Louis Proj 5.75% 6/15/2017 aa1 400 386,000
University MO Univ Rev Sys Fac 5.50% 11/1/2017 AA+ 1,200 1,200,000
University MO Univ Rev Sys Fac 5.80% 11/1/2027 AA+ 1,975 1,982,406
University Puerto Rico Rev Univ Rev Ser O (12) 5.375% 6/1/2030 AAA 2,000 1,930,000
==========
Total 13,408,468
------------------------------------------------------------------------------------------------------------------------------------
General Boone Cnty MO Reorg Sch Dist #R-6 6.00% 3/1/2020 AA+ 500 521,249
Obligation Franklin Cnty MO Reorg Sch Dis #R-XV 6.00% 3/1/2020 AA+ 390 404,138
14.78% Jasper Cnty MO Sch Dist #R-8 MO Direct Deposit Prog 5.10% 3/1/2019 Aaa 950 889,438
Missouri St Fourth State Bldg Ser A 4.50% 6/1/2020 AAA 645 553,894
Puerto Rico Comwlth Pub Impt 4.50% 7/1/2023 A 3,800 3,196,750
Puerto Rico Comwlth RIBs+ (12) 7.231% 7/1/2008 AAA 1,000 1,062,500
Puerto Rico Comwlth RIBs+ (9) 7.329% 7/1/2020 AAA 4,000 4,095,000
Springfield MO Sch Dist #R-12 Direct Deposit Prog 5.85% 3/1/2020 AA+ 500 510,625
St. Louis Cnty MO Pattonville #R-3 Sch Dist (6) 6.00% 3/1/2019 AAA 845 893,588
St. Louis Cnty MO Sch Dist #R-8 Lindbergh (12) Zero Coupon 3/1/2017 AAA 2,940 1,176,000
18 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
MISSOURI TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
St. Louis Cnty MO Sch Dist #R-8 Lindbergh (12) Zero Coupon 3/1/2018 AAA $3,015 $ 1,130,625
St. Louis MO Pub Safety (6) 5.125% 2/15/2016 AAA 700 679,000
St. Louis MO Pub Safety (6) 5.125% 2/15/2018 AAA 1,120 1,073,800
University City MO Sch Dist (12) 10.00% 2/15/2008 AAA 1,175 1,549,531
==========
Total 17,736,138
------------------------------------------------------------------------------------------------------------------------------------
Healthcare Cape Girardeau Cnty MO Ind Dev Auth Hlth Care Fac
14.14% Rev SE Mo Hosp Assoc (12) 5.25% 6/1/2016 AAA 250 245,625
Hannibal MO Ind Dev Auth Hlth Fac Rev Regl Hosp Ser A (9) 5.625% 3/1/2012 AAA 2,170 2,240,525
Jackson Cnty MO Ind Dev Auth Hlth Care Corp Rev
St Joseph Ctr 7.00% 7/1/2022 aa1 1,500 1,522,500
Lees Summit MO Ind Dev Auth Hlth Fac Rev 6.00% 8/15/2017 A-* 1,200 1,123,500
Missouri St Hlth & Ed Fac Auth Rev BJC Hlth Sys (12) 5.00% 5/15/2038 AAA 1,000 863,750
Missouri St Hlth & Ed Fac Auth Rev Heartland Hlth Sys Proj (2) 6.35% 11/15/2017 AAA 3,600 3,721,500
Missouri St Hlth & Ed Fac Auth Rev Hlth Midwest Ser B (12) 6.25% 2/15/2022 AAA 2,175 2,218,500
Missouri St Hlth & Ed Fac Auth Rev SSM Hlth Care Ser A (12) 5.00% 6/1/2022 AAA 1,750 1,592,500
North Kansas City MO Hosp Rev (2) 4.75% 11/15/2023 Aaa 3,680 3,141,800
Puerto Rico Ind Tourist Ed Med & Envr Ctrl Fac Mennonite
Gen Hosp Proj Ser A 5.625% 7/1/2017 BB- 355 307,075
==========
Total 16,977,275
------------------------------------------------------------------------------------------------------------------------------------
Housing Missouri St Dev Fin Brd Multi Fam Rev Quality Hill Proj
9.32% Ser A (3) 5.60% 9/15/2028 AA 2,115 2,043,618
Missouri St Hsg Dev Cmnty Mtg Rev Sing Fam Mtg
Ser A AMT# (10) 6.75% 6/1/2024 AAA 285 292,481
Missouri St Hsg Dev Cmnty Mtg Rev Sing Fam Mtg
Ser B AMT# (10) 6.40% 12/1/2024 AAA 1,915 1,943,725
Missouri St Hsg Dev Cmnty Mtg Rev 13.5/2005
w/Warrants AMT# (11) 6.22% 3/1/2026 AAA 4,705 4,769,694
Missouri St Hsg Dev Cmnty Mtg Rev Sing Fam Ser E-1
AMT# (11) Zero Coupon 3/1/2029 AAA 4,750 825,313
Puerto Rico Hsg Fin Corp Sing Fam Mtg Rev Portfolio 1
Ser B (10) 7.65% 10/15/2022 AAA 10 10,225
St. Louis Cnty Mo Ind Dev Auth Multi Fam Hsg Rev
Bonhomme Village Apt Proj Ser A (8) 5.35% 7/1/2018 AAA 1,360 1,302,200
==========
Total 11,187,256
------------------------------------------------------------------------------------------------------------------------------------
Industrial Missouri St Dev Fin Bd Solid Waste Disp Rev
7.03% Procter & Gamble Paper Proj AMT# 5.20% 3/15/2029 AA 8,200 7,441,500
St. Louis MO Ind Dev Auth Swr & Solid Waste Disp Fac Rev
Anheuser-Busch Proj AMT# 5.875% 11/1/2026 A+ 1,005 998,719
==========
Total 8,440,219
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Columbia MO Sp Oblig Cap Impt 5.50% 2/1/2016 A 330 326,700
aneous Gladstone MO Ctfs Partn Ser A (2) 5.35% 6/15/2016 Aaa 1,095 1,085,419
11.62% Kansas City MO Muni Assistance Corp Rev Ser A 5.125% 3/1/2019 A3 1,100 1,016,125
Missouri Sch Brd Assoc Lease Partn NIXA Reorg
Sch Dist R-2 (3) 5.40% 3/1/2020 AA 850 824,500
Missouri St Ctfs Partn Bonne Terre Prison Proj Ser A (2) 5.15% 6/1/2018 AAA 1,415 1,337,175
Missouri St Ctfs Partn Bonne Terre Prison Proj Ser A (2) 5.15% 6/1/2019 AAA 905 848,438
Missouri St Dev Fin Brd Infra Fac Rev Hartman Heritage
Ctr Proj Ser A (2) 5.875% 4/1/2020 Aaa 1,000 1,021,250
Missouri St Dev Fin Brd Infra Fac Rev Midtown Redev
Proj Ser A (12) 5.125% 4/1/2013 AAA 1,000 995,000
St. Louis MO Ind Dev Auth Rev Kiel Ctr Multi Purp Arena
AMT# 7.875% 12/1/2024 BB* 2,000 2,095,000
St. Louis MO Muni Fin Corp Lease Hold Rev City Justice Ctr
Ser A (2) 6.00% 2/15/2019 AAA 3,500 3,613,750
See Notes to Financial Statements 19
<PAGE>
Schedule of Investments (continued)
MISSOURI TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
St. Louis MO Muni Fin Corp Leasehold Rev City Justice Ctr
Ser A (2) 6.00% 2/15/2020 Aaa $ 760 $ 793,249
==========
Total 13,956,606
------------------------------------------------------------------------------------------------------------------------------------
Pollution Missouri St Envr Impt & Enrg Res Auth Wtr Poll Ctrl
7.95% Revolving Fd Prog Series E 5.25% 1/1/2019 Aaa 900 867,375
Missouri St Envr Impt & Enrg Res Auth MO St
Environ Wtr Rev 5.90% 1/1/2019 Aaa 2,100 2,152,500
Missouri St Envr Impt & Enrg Res Auth Wtr Poll Ctrl
Revolving Fd Prog Ser B 7.20% 7/1/2016 Aaa 2,250 2,466,563
Missouri St Envr Impt & Enrg Res Auth Wtr Poll Ctrl Ser A 6.55% 7/1/2014 Aaa 3,000 3,142,500
Missouri St Envr Impt & Enrg Res Auth Wtr Poll Ctrl Ser E 5.625% 7/1/2016 Aaa 900 912,375
==========
Total 9,541,313
------------------------------------------------------------------------------------------------------------------------------------
Power Puerto Rico Elec Pwr Auth Pwr Rev Ser HH (9) 5.25% 7/1/2029 AAA 2,000 1,907,500
1.59%
------------------------------------------------------------------------------------------------------------------------------------
Prere- Clay Cnty MO Pub Bldg Auth Lease Hold Rev (6) 7.00% 5/15/2014 AAA 1,000 1,080,000
funded Missouri St Hlth & Ed Fac Auth Ed Fac Rev St Louis Univ
13.10% High Sch 6.35% 10/1/2014 AAA 2,000 2,140,000
Missouri St Hlth & Ed Fac Auth Rev BJC Hlth Sys Ser A 6.50% 5/15/2020 Aa 4,900 5,285,875
Puerto Rico Elec Pwr Auth Pwr Rev RIBs (9)+ 7.378% 7/1/2023 AAA 2,500 2,700,000
Puerto Rico Tel Auth Rev RIBs (12)+ 6.42% 1/25/2007 AAA 2,000 2,125,000
Puerto Rico Tel Auth Rev RIBs (12)+ 6.82% 1/16/2015 AAA 1,000 1,070,000
St. Louis MO Pkg Fac Rev (12) 5.375% 12/15/2021 AAA 10 9,800
St. Louis MO Sch Dist (6) 6.00% 4/1/2012 AAA 1,275 1,321,219
==========
Total 15,731,894
------------------------------------------------------------------------------------------------------------------------------------
Transpor- Lake Of The Ozarks Cmnty Brdg Corp MO Brdg Sys Rev 5.25% 12/1/2020 BB- 1,500 1,297,500
tation Lake Of The Ozarks Cmnty Brdg Corp MO Brdg Sys Rev 5.25% 12/1/2026 BB- 3,000 2,527,500
8.14% Puerto Rico Comwlth Hwy & Transn Auth Transn
Rev Ser A (12) 4.75% 7/1/2038 AAA 5,430 4,676,588
St. Louis MO Arpt Rev Lambert St. Louis Intl Ser B
AMT# (6) 5.25% 7/1/2022 AAA 750 700,312
St. Louis MO Arpt Rev Lambert St. Louis Intl Ser B
AMT# (6) 5.25% 7/1/2027 AAA 625 575,000
==========
Total 9,776,900
------------------------------------------------------------------------------------------------------------------------------------
Water/ St. Charles Cnty MO Pub Wtr Supp Dist #2 Ctfs Partn
Sewer Ser A (12) 5.00% 12/1/2020 Aaa 40 36,700
0.03%
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 98.87% (Cost $118,214,418) 118,700,269
====================================================================================================================================
20 See Notes to Financial Statements
<PAGE>
Schedule of Investments
HAWAII TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education University HI Univ Sys Rev Ser G (2) 5.45% 10/1/2006 AAA $ 275 $ 282,563
0.40%
------------------------------------------------------------------------------------------------------------------------------------
Finance Puerto Rico Pub Fin Corp Comwlth Approp Ser A (9) 5.00% 6/1/2026 AAA 1,000 925,000
1.32%
------------------------------------------------------------------------------------------------------------------------------------
General Hawaii Cnty HI Ref Impt Ser A (6) 5.60% 5/1/2013 AAA 1,780 1,837,850
Obligation Hawaii Cnty HI Ser A (9) 5.625% 5/15/2019 AAA 545 545,681
28.29% Hawaii St (9) 5.875% 9/1/2019 AAA 1,175 1,204,375
Hawaii St (6) 8.00% 1/1/2013 AAA 2,000 2,495,000
Hawaii St Ser BZ 6.00% 10/1/2010 Aa3 500 536,250
Hawaii St Ser BZ 6.00% 10/1/2012 Aa3 500 535,625
Hawaii St Ser CP (6) 5.00% 10/1/2016 AAA 900 853,875
Hawaii St Ser CR (12) 4.75% 4/1/2018 AAA 3,000 2,718,749
Honolulu HI City & Cnty Ser A (12) 5.00% 11/1/2015 AAA 1,095 1,047,094
Honolulu HI City & Cnty Ser A (6) 5.50% 9/1/2016 AAA 5 5,006
Honolulu HI City & Cnty Ser B (6) 5.00% 11/1/2016 AAA 265 251,088
Honolulu HI City & Cnty Wtr (6) 6.00% 12/1/2015 AAA 1,000 1,066,250
Kauai Cnty HI (6) 6.125% 8/1/2024 AAA 580 600,300
Kauai Cnty HI Pub Impt Ser B (12) 5.25% 8/1/2017 AAA 95 91,913
Maui Cnty HI (12) 5.75% 6/1/2016 AAA 1,035 1,055,700
Maui Cnty HI Ser A (6) 6.10% 3/1/2020 AAA 500 520,000
Puerto Rico Comwlth Pub Impt 4.50% 7/1/2023 A 500 420,625
Puerto Rico Comwlth Pub Impt 5.25% 7/1/2018 A 1,000 992,500
Puerto Rico Comwlth RIBs+ (9) 7.329% 7/1/2020 AAA 3,000 3,071,250
==========
Total 19,849,131
------------------------------------------------------------------------------------------------------------------------------------
Healthcare Hawaii St Dept Bdg & Fin Sp Purp Rev Kaiser
11.45% Permanente Ser A 5.15% 3/1/2015 A 2,000 1,827,500
Hawaii St Dept Bdg & Fin Sp Purp Rev Kapiolani Hlth 6.20% 7/1/2016 A 1,000 1,003,750
Hawaii St Dept Bdg & Fin Sp Purp Rev Kapiolani Hlth 6.25% 7/1/2021 A 2,000 1,990,000
Hawaii St Dept Bdg & Fin Sp Purp Rev Wilcox Mem
Hosp Proj 5.25% 7/1/2013 BB+ 1,200 1,045,500
Hawaii St Dept Bdg & Fin Sp Purp Rev Wilcox Mem
Hosp Proj 5.50% 7/1/2028 BB+ 1,350 1,093,500
Hawaii St Dept Bdg & Fin Sp Purp Rev The Queens Hlth
Sys Ser B (12) 5.25% 7/1/2023 AAA 1,000 920,000
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl
Facs Rev Hosp Mutuo Oblig Grp Ser A (12) 6.25% 7/1/2024 AAA 150 156,375
==========
Total 8,036,625
------------------------------------------------------------------------------------------------------------------------------------
Housing Hawaii St Hsg Fin & Dev Corp Rev Univ of HI
6.11% Faculty Hsg Proj (2) 5.65% 10/1/2016 AAA 1,000 1,010,000
Hawaii St Hsg Fin & Dev Corp Rev Univ Of HI
Faculty Hsg Proj (2) 5.70% 10/1/2025 AAA 380 379,050
Hawaii St Hsg Fin & Dev Corp Sing Fam Mtg
Purp Rev Ser A AMT# (8) 7.10% 7/1/2024 AAA 960 986,928
Hawaii St Hsg Fin & Dev Corp Sing Fam Mtg Purp
Rev Ser B (8) 5.30% 7/1/2028 AAA 1,000 937,500
Hawaii St Hsg Fin & Dev Corp Sing Fam Mtg Purp
Rev Ser B (8) 5.45% 7/1/2017 AAA 1,000 977,500
==========
Total 4,290,978
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Hawaii St Ctfs Partn Kapolei St Office Bldg Ser A (2) 5.00% 5/1/2018 AAA 725 672,438
aneous Puerto Rico Pub Bldg Auth Rev Govt Fac Ser B (2) 5.00% 7/1/2027 AAA 1,000 922,500
2.27%
==========
Total 1,594,938
------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 21
<PAGE>
Schedule of Investments (continued)
HAWAII TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Power Hawaii St Dept Bdg & Fin Sp Purp Mtg Rev RIBs AMT# + 6.229% 12/15/2023 A+ $5,000 $ 4,581,249
17.76% Hawaii St Dept Bdg & Fin Sp Purp Mtg Rev HI Elec Co
Ser A AMT# (12) 6.60% 1/1/2025 AAA 2,500 2,625,000
Hawaii St Dept Bdg & Fin Sp Purp Mtg Rev HI Elec Co
Ser C AMT# (12) 7.375% 12/1/2020 AAA 1,750 1,790,443
Hawaii St Dept Bdg & Fin Sp Purp Mtg Rev St Francis
Med Ctrs (9) 6.50% 7/1/2022 AAA 1,200 1,231,500
Puerto Rico Elec Pwr Auth Pwr Rev Ser DD 5.00% 7/1/2028 A- 900 810,000
Puerto Rico Elec Pwr Auth Pwr Rev Ser HH (9) 5.25% 7/1/2029 AAA 1,500 1,430,625
==========
Total 12,468,817
------------------------------------------------------------------------------------------------------------------------------------
Prere- Hawaii St Dept Bdg & Fin Sp Purp Mtg Rev Pali Momi
funded Med Ctr Proj 7.65% 7/1/2019 AAA 1,000 1,043,100
17.02% Honolulu HI City & Cnty Ser A (12) 5.00% 11/1/2015 AAA 405 411,581
Honolulu HI City & Cnty Ser A (6) 5.50% 9/1/2016 AAA 440 465,300
Honolulu HI City & Cnty Ser A (6) 5.50% 9/1/2016 AAA 555 580,669
Honolulu HI City & Cnty Ser B (6) 5.00% 11/1/2016 AAA 235 240,581
Puerto Rico Comwlth 6.00% 7/1/2026 AAA 1,000 1,105,000
Puerto Rico Comwlth 6.45% 7/1/2017 AAA 2,575 2,800,312
Puerto Rico Comwlth 6.50% 7/1/2023 AAA 1,250 1,362,500
Puerto Rico Elec Pwr Auth Pwr Rev RIBs (9)+ 7.378% 7/1/2023 AAA 1,500 1,620,000
Puerto Rico Ind Med & Environmental Poll Ctrl
St Luke Hosp Ser A 6.25% 6/1/2010 AAA 1,390 1,461,238
Puerto Rico Tel Auth Rev RIBs (12)+ 6.82% 1/16/2015 AAA 800 856,000
==========
Total 11,946,281
------------------------------------------------------------------------------------------------------------------------------------
Transpor- Hawaii St Arpt Sys Rev 2nd Ser AMT# (12) 7.00% 7/1/2018 AAA 2,000 2,064,000
tation Hawaii St Hbr Cap Impt Rev AMT# (6) 6.25% 7/1/2015 AAA 500 518,125
10.09% Hawaii St Hbr Cap Impt Rev AMT# (6) 6.375% 7/1/2024 AAA 500 515,000
Puerto Rico Comwlth Hwy 6.625% 7/1/2012 A 500 523,750
Puerto Rico Comwlth Hwy & Transn Auth Transn
Rev Ser A (2) 5.00% 7/1/2028 AAA 1,640 1,510,850
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser B 6.00% 7/1/2026 A 1,000 1,031,250
Puerto Rico Comwlth Hwy & Transn Auth Transn
Rev Sub PR St Infrastructure Bk 5.00% 7/1/2022 A- 20 18,200
Puerto Rico Comwlth Hwy & Transn Auth Transn
Rev Sub PR St Infrastructure Bk 5.00% 7/1/2028 A- 1,000 900,000
==========
Total 7,081,175
------------------------------------------------------------------------------------------------------------------------------------
Water/ Honolulu HI City & Cnty Bd Wtr 5.80% 7/1/2021 AA 1,000 1,011,250
Sewer Honolulu HI City & Cnty Waste Wtr Sys Rev
3.74% 2nd Bd Resolution (6) 4.50% 7/1/2028 AAA 2,000 1,615,000
==========
Total 2,626,250
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 98.45% (Cost $68,333,754) $69,101,758
====================================================================================================================================
22 See Notes to Financial Statements
<PAGE>
Schedule of Investments
WASHINGTON TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education University Puerto Rico Rev Univ Rev Ser O (12) 5.375% 6/1/2030 AAA $ 500 $ 482,500
3.04% Washington St Higher Ed Fac Auth Rev
Gonzaga Univ Proj (12) 4.75% 4/1/2022 AAA 1,000 868,750
==========
Total 1,351,250
------------------------------------------------------------------------------------------------------------------------------------
Finance
1.10% Puerto Rico Comwlth Infrastructure Fin Auth Ser A 5.50% 10/1/2040 AAA 500 491,250
------------------------------------------------------------------------------------------------------------------------------------
General King Cnty WA Ref Ser B (12) 5.00% 1/1/2030 AAA 1,255 1,102,831
Obligation King Cnty WA Ref Swr Ser C (12) 5.25% 1/1/2030 AAA 1,000 921,250
17.99% King Cnty WA Ser B 4.50% 1/1/2024 Aa1 320 262,400
King Cnty WA Pub Hosp Dist #2 (12) 5.00% 12/1/2028 AAA 1,500 1,325,625
Port Seattle WA Ser B AMT# 5.75% 12/1/2025 Aa1 750 740,625
Puerto Rico Comwlth RIBs+ 6.521% 7/1/2029 A* 1,000 1,062,500
Vancouver WA LTD Tax (2) 5.50% 12/1/2025 AAA 1,255 1,214,213
Washington St Ser A 5.75% 9/1/2019 Aa1 250 251,563
Washington St Ser B 5.75% 5/1/2016 Aa1 1,000 1,010,000
Whatcom Cnty WA 5.75% 12/1/2012 A1 115 117,156
==========
Total 8,008,163
------------------------------------------------------------------------------------------------------------------------------------
Healthcare Puerto Rico Ind Tourist Ed Med & Environmental Ctrl
2.30% Fac Hospital de la Concepcion Ser A 6.125% 11/15/2030 Aa2 1,000 1,025,000
------------------------------------------------------------------------------------------------------------------------------------
Housing Skagit Cnty WA Hsg Auth Low Income Hsg Assist
5.40% Rev Mtg Ln (10) 7.00% 6/20/2035 AAA 750 805,313
Snohomish Cnty WA Hsg Auth Rev Cedar St Apt
Proj Ser A AMT# 6.40% 5/1/2027 A 500 514,375
Washington St Hsg Fin Cmnty Sing Fam Mtg
Rev Mtg Ser A AMT# (11) 6.65% 7/1/2016 AAA 20 20,046
Washington St Hsg Fin Cmnty Sing Fam Mtg
Rev Mtg Ser A AMT# (11) 7.05% 7/1/2022 AAA 1,015 1,064,481
==========
Total 2,404,215
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Bellevue WA Convention Ctr Auth Sp Oblig Rev (12) Zero Coupon 2/1/2024 AAA 1,400 357,000
aneous CDP-King Cnty III WA Lease Rev King Street Ctr Proj (12) 5.25% 6/1/2026 AAA 500 465,625
2.43% Spokane WA Pub Fac Dist Hotel Motel & Sales Use
Tax Multi Purp Arena Proj (2) 6.50% 1/1/2018 AAA 250 259,063
==========
Total 1,081,688
------------------------------------------------------------------------------------------------------------------------------------
Power Chelan Cnty WA Pub Util Dist #001 Cons Rev Chelan
24.80% Hydroelec Ser A AMT# (12) 6.40% 7/1/2017 AAA 1,000 1,060,000
Chelan Cnty WA Pub Util Dist #1 Columbia River
Rock Island Hwy Ser A (12) Zero Coupon 6/1/2024 AAA 1,860 460,350
Douglas Cnty WA Pub Util Dist #001 Wells Hydro 8.75% 9/1/2018 Aa3 350 422,625
Douglas Cnty WA Pub Util Dist #001 Wells Hydro
2 Tier Ser B (2) 8.75% 9/1/2006 AAA 3,995 4,399,492
Lewis Cnty WA Pub Util Dist #1 Cowlitz Falls Hydro 5.50% 10/1/2022 Aa1 755 733,294
Puerto Rico Elec Pwr Auth Ser HH (9) 5.375% 7/1/2030 AAA 1,000 965,000
Puerto Rico Elec Pwr Auth Pwr Rev Ser EE 4.75% 7/1/2024 A- 1,500 1,312,500
Puerto Rico Elec Pwr Auth Pwr Rev Ser HH (9) 5.25% 7/1/2029 AAA 1,000 953,750
Seattle WA Muni Lt & Pwr Rev Ser A (12) 5.625% 9/1/2015 AAA 720 731,700
==========
Total 11,038,711
------------------------------------------------------------------------------------------------------------------------------------
Prere- Douglas Cnty WA Pub Util Dist #001 Wells Hydro 8.75% 9/1/2018 AAA 150 187,688
funded Mount Vernon WA (2) 6.85% 12/1/2014 AAA 1,285 1,394,225
16.32% Port Seattle WA Rev Ser B AMT# 6.70% 11/1/2010 AAA 20 21,175
Puerto Rico Elec Pwr Auth Pwr Rev RIBs (9)+ 7.378% 7/1/2023 AAA 3,500 3,780,000
Puerto Rico Tel Auth Rev RIBs (12)+ 6.82% 1/16/2015 AAA 500 535,000
Renton WA Wtr & Swr Rev 6.55% 11/1/2013 AAA 1,000 1,072,500
See Notes to Financial Statements 23
<PAGE>
Schedule of Investments (continued)
WASHINGTON TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Washington St Higher Ed Fac Auth Rev
Whitworth College (5) 7.00% 10/1/2015 AAA $ 250 $ 271,875
==========
Total 7,262,463
------------------------------------------------------------------------------------------------------------------------------------
Transpor- Puerto Rico Comwlth Hwy & Transn Auth Transn
tation Rev Transn Rev Ser PMD-9 RIBs+ (9) 7.60% 7/1/2026 AAA 500 532,500
16.03% Central Puget Sound WA Regl Transit Auth
Sales Tax & Motor (6) 5.25% 2/1/2021 AAA 2,750 2,636,563
Port Kalama WA Rev Ser B AMT# 5.625% 12/1/2015 aa1 400 383,000
Port Seattle WA Passenger Fac Charge Rev Ser A (12) 5.00% 12/1/2023 AAA 1,125 1,013,906
Port Seattle WA Spl Fac Rev Ser C AMT# (12) 6.00% 9/1/2029 AAA 1,000 1,015,000
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser B 6.00% 7/1/2026 A 1,000 1,031,250
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser B 6.00% 7/1/2031 A 500 521,875
==========
Total 7,134,094
------------------------------------------------------------------------------------------------------------------------------------
Water/ King Cnty WA Swr Rev (6) 5.25% 1/1/2026 AAA 1,525 1,423,969
Sewer Seattle WA Wtr Sys Rev 5.25% 12/1/2023 Aa2 1,040 969,800
9.80% Seattle WA Wtr Sys Rev (6) 5.375% 3/1/2029 AAA 1,000 940,000
Vancouver WA Wtr & Swr Rev WA (6) 6.00% 6/1/2020 AAA 1,000 1,028,750
==========
Total 4,362,519
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 99.21% (Cost $43,320,663) $44,159,353
====================================================================================================================================
Schedule of Investments
MINNESOTA TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education Minnesota St Higher Ed Fac Auth Rev Hamline
7.24% Univ Ser 5-B 6.00% 10/1/2029 aa1 $ 500 $ 501,874
Minnesota St Higher Ed Fac Auth Rev Macalester
College Ser 4-J 5.55% 3/1/2017 Aa3 260 260,000
Minnesota St Higher Ed Fac Auth Rev Univ of
St. Thomas Ser 4-A1 5.625% 10/1/2016 A2 250 248,750
Minnesota St Higher Ed Fac Auth Rev Univ of
St. Thomas Ser 4-M 5.35% 4/1/2017 A2 250 241,563
University MN Ser A 5.75% 7/1/2018 Aa2 250 258,438
==========
Total 1,510,625
------------------------------------------------------------------------------------------------------------------------------------
General Minneapolis MN Sp Sch Dist #001 (6) 5.375% 2/1/2014 AAA 250 251,563
Obligation Minneapolis MN Sp Sch Dist #001 Ctfs Partn 5.75% 2/1/2017 Aa1 1,120 1,143,799
24.46% Minneapolis MN Sp Sch Dist #001 Ctfs Partn Ser B 5.125% 2/1/2018 Aa1 300 282,000
Minnesota St 5.25% 8/1/2014 AAA 265 265,331
North St. Paul Maplewood MN Dist Indpt Sch Dist #622 5.125% 2/1/2025 Aa1 400 367,500
North St. Paul Maplewood MN Indpt Sch Dist #622 Ser A 5.125% 2/1/2020 Aa1 550 518,375
Park Rapids MN Indpt Sch Dist #309 4.75% 2/1/2018 Aa1 250 221,563
Princeton MN Indpt Sch Dist #477 (9) 5.125% 2/1/2024 Aaa 1,000 931,250
Puerto Rico Comwlth Pub Impt (12) 5.00% 7/1/2028 AAA 735 677,119
St. Michael MN Indpt Sch Dist #885 5.00% 2/1/2025 Aa1 250 222,500
Windom MN Indpt Sch Dist #177 4.75% 2/1/2019 Aa1 250 220,938
==========
Total 5,101,938
------------------------------------------------------------------------------------------------------------------------------------
24 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
MINNESOTA TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Healthcare Hastings MN Hlth Care Fac Rev Regina Med Ctr (1) 5.30% 9/15/2028 A $ 500 $ 430,625
13.59% Minneapolis & St. Paul MN Hsg & Redev Auth Hlth Care
Sys Childrens Hlth Care Ser A (9) 5.70% 8/15/2016 AAA 150 150,000
Minneapolis & St. Paul MN Hsg & Redev Auth Hlth Care
Sys Group Hlth Plan Proj 6.90% 10/15/2022 BB+ 300 303,000
Minnesota Agric & Econ Dev Brd Rev Hlth Care Sys
Fairview Hosp Ser A (12) 5.50% 11/15/2017 AAA 220 217,250
Rochester MN Hlth Care Fac Rev Mayo Foundation
Ser A (12) 5.50% 11/15/2027 AAA 500 480,625
Rochester MN Hlth Care Fac Rev Ser H RIBs+ 7.509% 11/15/2015 AA+ 1,000 1,050,000
St. Paul MN Hsg & Redev Auth Hosp Rev Healtheast Proj
Ser A 5.70% 11/1/2015 BB- 250 204,063
==========
Total 2,835,563
------------------------------------------------------------------------------------------------------------------------------------
Housing Eden Prairie MN Multi Fam Hsg Rev Lincoln Parc
15.19% Proj Ser A-1 (10) 6.40% 12/20/20 Aaa 305 311,100
Fairbault MN Hsg & Redev Auth Govt Hsg Dev Gross
Rev Trails Edge Apts Ser A 5.25% 2/1/2028 A3 500 459,375
Minneapolis MN Multi Fam Hsg Rev Mtg East Village
South (10) 6.10% 7/20/2020 Aaa 1,000 1,031,248
Minnesota St Hsg Fin Agy Sing Fam Mtg Ser B-1 AMT# 6.75% 1/1/2026 Aa1 95 97,494
Minnesota St Hsg Fin Agy Sing Fam Mtg Ser D AMT# 5.85% 7/1/2019 AA+ 205 205,256
Minnesota St Hsg Fin Agy Sing Fam Mtg Ser D AMT# 6.40% 7/1/2015 Aa1 230 238,625
Minnesota St Hsg Fin Agy Sing Fam Mtg Ser E 5.90% 7/1/2025 Aa1 195 196,219
Minnesota St Hsg Fin Agy Sing Fam Mtg Ser G AMT# 6.25% 7/1/2026 Aa1 195 197,925
Robbinsdale MN Hsg Dev Sr Hsg Proj Ser B (6) 5.75% 1/1/2023 Aaa 250 249,063
Scott Cnty MN Hsg & Redev Savage City Hamilton
Apts Proj (2) 5.60% 2/1/2019 Aaa 80 79,600
St. Louis Park MN Multi Fam Hsg Mtg Cmnty Hsg (7) 6.15% 12/1/2016 Aa 100 103,875
==========
Total 3,169,780
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Bemidji MN Lease Rev MN St Bureau Criminal
aneous Apprehension (12) 5.80% 12/1/2021 Aaa 460 464,599
7.70% Minneapolis MN Sports Arena Proj 5.125% 10/1/2020 AAA 500 470,625
Minnesota St Retirement Sys Bldg Rev 6.00% 6/1/2030 AAA 250 256,563
St. Cloud MN Ctfs Partn 5.90% 12/1/2017 BB+ 200 196,000
St. Paul MN Tax Increment Block 39 Proj Ser A 4.75% 2/1/2019 AA+ 250 219,688
==========
Total 1,607,475
------------------------------------------------------------------------------------------------------------------------------------
Pollution Minnesota Pub Fac Auth Wtr Poll Ctrl Rev Ser A 4.75% 3/1/2017 AAA 300 270,375
1.30%
------------------------------------------------------------------------------------------------------------------------------------
Power Chaska MN Elec Rev Ser A 6.00% 10/1/2025 A3 250 252,500
5.39% Puerto Rico Elec Pwr Auth Pwr Rev Ser DD (9) 4.50% 7/1/2019 AAA 95 83,125
South Minnesota Muni Pwr Agy Pwr Supply Sys Rev
Ser A (12) Zero Coupon 1/1/2021 AAA 1,000 315,000
South Minnesota Muni Pwr Agy Pwr Supply Sys Rev
Ser A (12) 5.00% 1/1/2016 AAA 500 473,125
==========
Total 1,123,750
------------------------------------------------------------------------------------------------------------------------------------
Prere- Marshall MN Elec & Wtr Util Rev (9) 6.45% 7/1/2011 AAA 150 156,750
funded Minneapolis & St. Paul MN Hsg & Redev Auth Hlth Care
11.93% Sys Health One Obligated Grp Ser A (12) 6.75% 8/15/2014 AAA 245 251,377
Minneapolis & St. Paul MN Hsg & Redev Auth Hlth Care Sys
Hlth One Obligated Group Ser A (12) 7.40% 8/15/2011 AAA 500 514,245
Minneapolis MN Hosp Rev Childrens Med Ctr Proj Ser C 7.00% 12/1/2020 AAA 200 207,276
Minneapolis MN Hosp Rev Childrens Med Ctr Proj Ser C 7.30% 12/1/2006 AAA 200 207,660
Minnesota Pub Fac Auth Wtr Poll Ctrl Rev Ser A 6.25% 3/1/2016 AAA 100 106,375
See Notes to Financial Statements 25
<PAGE>
Schedule of Investments (continued)
MINNESOTA TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Minnesota Pub Fac Auth Wtr Poll Ctrl Rev Ser A 6.50% 3/1/2014 AAA $1,000 $ 1,046,250
==========
Total 2,489,933
------------------------------------------------------------------------------------------------------------------------------------
Transpor- Minneapolis & St. Paul MN Met Arpt Cmnty Arpt
tation Rev Ser A (2) 5.20% 1/1/2024 AAA 500 464,375
8.63% Minneapolis & St. Paul MN Met Arpt Cmnty
Ser 13 AMT# 4.50% 1/1/2014 AAA 250 223,750
Minneapolis & St. Paul MN Met Arpts Cmnty Arpt
Rev Ser A (2) 5.00% 1/1/2030 AAA 1,250 1,112,500
==========
Total 1,800,625
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 95.43% (Cost $20,025,240) $19,910,064
====================================================================================================================================
Schedule of Investments
CALIFORNIA TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education Abag Fin Auth For NonProfit Corp CA Rev Ser A
19.83% Calif Schools of Sacred Heart 6.45% 6/1/2030 aa3 $ 1,000 $ 1,042,500
California Cmnty College Fin Auth Lease Rev Ser A (12) 4.625% 9/1/2023 AAA 1,850 1,623,375
California Ed Fac Auth Rev 144A Res Ctfs Ser 113 RIBs+ 5.275% 12/1/2027 AAA 2,525 2,354,563
California Ed Fac Auth Rev Fresno Pacific Univ Ser A 6.75% 3/1/2019 aa3 1,250 1,343,750
California Ed Fac Auth Rev Institute of Technology 4.50% 10/1/2027 AAA 10,000 8,525,000
California Ed Fac Auth Rev Pepperdine Univ 5.75% 9/15/2030 A1 2,000 2,030,000
California Ed Fac Auth Rev Pooled College & Univ Proj Ser B 6.30% 4/1/2021 aa2 1,000 1,027,500
California Ed Fac Auth Rev Pooled College & Univ Ser C 6.50% 6/1/2020 aa3 3,000 3,150,000
California Ed Fac Auth Rev Univ of San Diego (2) 5.00% 10/1/2028 Aaa 2,000 1,847,500
California Ed Fac Auth Rev Univ of San Francisco (12) 6.00% 10/1/2016 AAA 75 79,875
California Ed Fac Auth Rev Univ of San Francisco (12) 6.00% 10/1/2026 AAA 2,665 2,761,606
California Ed Fac Auth Rev Univ of Southern CA Ser C 5.125% 10/1/2028 AA+ 1,470 1,392,825
California St Univ Rev & College Hsg Sys (6) 5.90% 11/1/2021 AAA 1,045 1,082,881
California Statewide Cmntys Dev Auth Auxiliary Fndtn CA
St Univ (12) 5.20% 6/1/2024 AAA 750 722,813
Los Angeles Calif Cmnty Colleg Ser A (9) 6.00% 8/15/2020 AAA 1,455 1,505,925
Rnr Sch Fin Auth CA Spl Tax Cmnty Facs
Dist No. 92-1-Ser A (2) 5.625% 9/1/2030 AAA 3,985 4,064,700
Santa Ana CA Univ Sch Dist Ctfs Partn Fin Proj (9) Zero Coupon 4/1/2019 AAA 2,295 811,856
University Puerto Rico Rev Univ Rev Ser O (12) 5.375% 6/1/2030 AAA 3,750 3,618,750
==========
Total 38,985,419
------------------------------------------------------------------------------------------------------------------------------------
Finance Orange Cnty CA Recovery Ctfs Partn Residual Ctfs
1.78% Ser 128 RIBs+ (12) 6.625% 7/1/2019 AA* 2,500 2,721,875
Orange Cnty CA Recovery Ctfs Partn Ser A (12) 6.00% 7/1/2026 AAA 750 774,375
==========
Total 3,496,250
------------------------------------------------------------------------------------------------------------------------------------
General California St 4.50% 10/1/2018 Aa2 1,800 1,611,000
Obligation California St (6) 4.75% 2/1/2029 AAA 1,945 1,706,738
8.73% Capistrano CA Univ Sch Dist Sch Fac Impt Dist #1 Ser A (6) 6.00% 8/1/2024 AAA 2,500 2,618,750
El Monte CA City Sch Dist Ser A (9) 6.25% 5/1/2025 AAA 1,230 1,316,100
Hacienda La Puente CA Univ Sch Dist CA Ser A (12) 5.25% 8/1/2025 AAA 750 727,500
Laguna Salada CA Un Sch Dis Ser C (6) Zero Coupon 8/1/2026 AAA 1,395 312,131
New Haven CA Univ Sch Dist Ser B (6) Zero Coupon 8/1/2022 AAA 10,000 2,762,500
26 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
CALIFORNIA TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Pittsburg Calif Uni Sch Dist Ser E (9) 6.00% 8/1/2024 AAA $1,380 $ 1,426,575
Placer Calif Un High Sch Dist Cap Apprec Ser A (6) Zero Coupon 8/1/2020 AAA 2,000 650,000
Pomona CA Univ Sch Dist Ser A (12) 6.55% 8/1/2029 AAA 1,000 1,158,750
San Juan CA Uni Sch Dist Cap Apprec (6) Zero Coupon 8/1/2023 AAA 1,000 267,500
Santa Cruz CA City Elem Sch Dist Ser B (6) 6.00% 8/1/2029 AAA 2,500 2,612,500
==========
Total 17,170,044
------------------------------------------------------------------------------------------------------------------------------------
Healthcare Abag Fin Auth for Nonprofit Corp CA Ctfs Partn
5.90% O'Connor Woods Obligated Group (1) 6.20% 11/1/2029 A 1,725 1,802,625
California Infrastructure & Econ Dev Bk Rev (12) 5.25% 6/1/2030 AAA 2,000 1,910,000
California Infrastructure & Econ Dev Bk Rev Scripps
Research Inst-Ser A 5.75% 7/1/2030 A1 1,500 1,522,500
Central CA JT Pwrs Health Fin Auth CTFS Partn
Cmnty Hosp of Central CA 6.00% 2/1/2030 A- 1,500 1,475,625
University CA Rev Ref Multiple Purp Proj Ser E (12) 5.125% 9/1/2020 AAA 500 486,875
Valley Hlth Sys CA Hosp Rev Rites PA 519 RIBs+ 7.915% 5/15/2025 A* 4,000 4,415,000
==========
Total 11,612,625
------------------------------------------------------------------------------------------------------------------------------------
Housing California Hsg Fin Agy Rev Home Mtg Ser A (7) 7.375% 8/1/2017 Aa2 2,785 2,840,700
1.44%
------------------------------------------------------------------------------------------------------------------------------------
Industrial California Statewide Cmnty Dev Auth Lease Rev
0.46% United Airlines Ser A AMT# 5.70% 10/1/2033 aa3 1,000 906,250
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Concord CA Redev Agy Tax Alloc Ser 3 (4) 8.00% 7/1/2018 AAA 35 35,329
aneous Inglewood CA Pub Fin Auth Rev Ser A (2) 5.25% 8/1/2021 AAA 700 688,625
7.44% Los Angeles CA Pkg Rev Ser A (2) 4.75% 5/1/2024 AAA 8,600 7,632,500
Midpeninsula Regl Open Space Dist CA Fin Auth Rev (2) Zero Coupon 9/1/2024 AAA 2,500 606,250
Oakland CA JT Pwrs Fing Auth Reassmt Rev 5.50% 9/2/2024 A- 515 491,181
Pittsburgh CA Redev Agy Tax Alloc Los Medanos Cmnty
Dev Proj (2) Zero Coupon 8/1/2026 AAA 3,500 783,125
San Diego CA Convention Ctr Expansn Fin Auth Lease
Rev Ser A (2) 4.75% 4/1/2028 AAA 5,020 4,405,050
==========
Total 14,642,060
------------------------------------------------------------------------------------------------------------------------------------
Pollution California Poll Ctrl Fin Auth Rev Southern CA Ser B
6.55% AMT# (2) 6.40% 12/1/2024 AAA 12,435 12,885,769
------------------------------------------------------------------------------------------------------------------------------------
Power Los Angeles CA Dept Wtr & Pwr Elec Plt Rev
12.44% Ref-Second Issue 4.75% 11/15/2019 Aa3 2,100 1,918,875
M-S-R Pub Pwr Agy CA San Juan Proj Rev (12) 6.75% 7/1/2020 AAA 1,000 1,146,250
Northern CA Transmission Rev CA Ore Transmission
Ser A (12) 6.50% 5/1/2016 AAA 4,250 4,457,188
Northern CA Transmission Rev RIBs+ (12) 6.052% 4/29/2024 AAA 8,500 8,330,000
Palo Alto CA Util Rev Ser A 6.25% 6/1/2020 AA+ 1,610 1,692,513
Puerto Rico Elec Pwr Auth Pwr Rev Ser HH (9) 5.25% 7/1/2029 AAA 500 476,875
Sacramento CA Muni Util Dist Elec Rev RIBs+ (6) 8.564% 8/15/2018 AAA 6,000 6,442,499
==========
Total 24,464,200
------------------------------------------------------------------------------------------------------------------------------------
Prere- East Bay CA Muni Util Dist Wtr Sys Rev Sub (2) 6.50% 6/1/2017 AAA 5,000 5,468,750
funded Metro Wtr Dist Southern CA Wtr Wks Rev RIBs+ 7.256% 8/5/2022 AAA 7,300 8,002,625
6.85% ==========
Total 13,471,375
------------------------------------------------------------------------------------------------------------------------------------
Transpor- Alameda Corridor Transn Auth CA Rev SR Lien Ser A (12) 5.00% 10/1/2029 AAA 2,000 1,845,000
tation Alameda Corridor Transn Auth CA Ser A (12) 4.75% 10/1/2025 AAA 7,420 6,566,699
16.96% Los Angeles CA Hbr Dept Rev Ser B AMT# 6.625% 8/1/2025 AA 1,000 1,041,250
Los Angeles Cnty CA Met Trans Auth Sales Tax Rev
Prop Second Ser A (9) 4.75% 7/1/2026 AAA 2,400 2,112,000
San Francisco CA City & Cnty Arpt Commn Intl Arpt Rev
Ser Issue 6 AMT# (2) 6.50% 5/1/2018 AAA 4,500 4,786,875
See Notes to Financial Statements 27
<PAGE>
Schedule of Investments (continued)
CALIFORNIA TAX-FREE INCOME FUND September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
San Francisco CA City & Cnty Arpt Commn Intl Arpt
Rev AMT# (9) 5.75% 1/1/2014 AAA $ 500 $ 518,750
San Francisco CA City & Cnty Arpt Commn Intl Arpt Rev
Second Ser Issue 15-B (12) 5.00% 5/1/2024 AAA 2,250 2,084,063
San Francisco CA City & Cnty Arpt Commn Intl Arpt Rev
Second Series-Issue 22 AMT# (2) 5.00% 5/1/2019 AAA 1,000 941,250
San Francisco CA City & Cnty Arpt Commn Intl Arpt Rev
Spl Fac Lease SFO Fuel Ser A AMT# (9) 6.125% 1/1/2027 AAA 500 517,500
San Francisco CA City & Cnty Arpt Commn Intl Rev
Ser Iss 2 (12) 6.75% 5/1/2020 AAA 3,230 3,456,100
San Francisco CA City & Cnty Arpt Commn Intl Rev
Ser Iss 20 (12) 4.50% 5/1/2023 AAA 1,690 1,451,288
San Francisco CA City & Cnty Arpt Commn Intl Rev
Ser Iss 20 (12) 4.50% 5/1/2026 AAA 4,400 3,723,500
San Mateo Cnty CA Transn Dist Ser A (12) 4.50% 6/1/2018 AAA 4,830 4,322,850
==========
Total 33,367,125
------------------------------------------------------------------------------------------------------------------------------------
Water/ Calleguas-Las Virgenes CA Pub Fin Auth Installment
Sewer Las Virgenes Mun Wtr Dist (9) 5.00% 11/1/2023 AAA 2,075 1,942,719
10.32% Chino Basin CA Regl Fin Auth Rev Inland Empire Util
Agy Swr Proj (12) 5.75% 11/1/2022 AAA 145 149,169
Citrus Heights Calif Wtr Dist (6) 5.25% 10/1/2020 AAA 1,800 1,779,750
East Bay CA Muni Util Dist Wst Wtr Treatment
Sys Rev RIBs+ (2) 6.52% 6/1/2020 AAA 2,050 2,047,438
East Bay CA Muni Util Dist Wtr Sys Rev Sub (12) 4.75% 6/1/2028 AAA 2,000 1,767,500
East Bay CA Muni Util Dist Wtr Sys Rev (12) 5.00% 6/1/2038 AAA 5,000 4,537,499
El Monte Calif Wtr Auth Rev Wtr Sys Proj (2) 5.60% 9/1/2029 AAA 2,000 2,020,000
Los Angeles CA Dept Wtr & Pwr Elec Rev 6.40% 5/15/2028 AA 3,000 3,089,370
Los Angeles CA Wst Wtr Sys Rev Ser C (12) 4.00% 6/1/2019 AAA 1,835 1,513,875
Reedley CA Pub Fin Auth Lease Rev Wst Wtr Treatment
Plant Proj (2) 6.05% 5/1/2015 AAA 1,400 1,450,750
==========
Total 20,298,070
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 98.70% (Cost $189,758,920) 194,139,887
====================================================================================================================================
Schedule of Investments
FLORIDA SERIES September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education Miami-Dade Cnty FL Ed Fac Ser A (2) 6.00% 4/1/2023 AAA $2,000 $ 2,087,500
4.95% Tallahassee FL Lease Rev FL ST Univ Proj Ser A (12) 5.25% 8/1/2023 AAA 3,000 2,838,750
==========
Total 4,926,250
------------------------------------------------------------------------------------------------------------------------------------
General Florida ST Brd Ed Cap Outlay Ser A 5.25% 6/1/2024 AA+ 2,000 1,895,000
Obligation Florida St Brd Ed Cap Outlay Public Ed Ser E 5.625% 6/1/2025 AA+ 1,000 997,500
11.80% Puerto Rico Comwlth RIBs+ 6.521% 7/1/2029 A* 2,000 2,125,000
Puerto Rico Comwlth RIBs+ (12) 7.10% 7/1/2026 AAA 3,500 3,666,250
Puerto Rico Comwlth RIBs+ (12) 7.231% 7/1/2008 AAA 1,100 1,168,750
Puerto Rico Comwlth Pub Impt 4.50% 7/1/2023 A 500 420,625
Puerto Rico Comwlth Pub Impt 5.25% 7/1/2017 A 1,475 1,471,313
==========
Total 11,744,438
------------------------------------------------------------------------------------------------------------------------------------
28 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
FLORIDA SERIES September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Healthcare Atlantic Beach FL Hlth Care Fac Rev Fleet Landing Proj (1) 5.50% 10/1/2012 A $ 765 $ 757,350
4.68% Atlantic Beach FL Hlth Care Fac Rev Fleet Landing Proj (1) 5.625% 10/1/2013 A 1,000 1,000,000
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl
Fac Hosp De La Concepcion 6.50% 11/15/2020 Aa2 410 438,188
Sarasota Cnty FL Pub Hosp Brd Rev Sarasota Mem Hosp
Ser B (12) 5.50% 7/1/2028 AAA 2,500 2,462,500
==========
Total 4,658,038
------------------------------------------------------------------------------------------------------------------------------------
Housing Broward Cnty FL Hsg Fin Auth Multi Fam Rev
4.25% Bridgewater Ser A AMT# 5.35% 10/1/2023 A 980 911,400
Dade Cnty FL Hsg Fin Auth Sing Fam Mtg Rev Ser E (8) 7.00% 3/1/2024 Aaa 35 35,849
Lee Cnty FL Hsg Fin Auth Sing Fam Mtg Rev AMT# (11) 6.40% 3/1/2029 Aaa 1,835 1,945,100
Miami Dade Cnty FL Hsg Fin Auth Multi Fam Rev Villa
Esperanza Apts Proj AMT# 5.45% 10/1/2038 A 1,250 1,156,250
Orange Cnty FL Hsg Fin Auth Ser A-1 AMT# (11) Zero Coupon 3/1/2028 Aaa 985 178,531
==========
Total 4,227,130
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Brevard Cnty FL Sales Tax Rev MB (12) 7.00% 12/1/2018 AAA 1,000 1,041,250
aneous Florida Muni Ln Council Rev (12) Zero Coupon 4/1/2020 AAA 4,000 1,305,000
12.01% Miami Dade Cnty FL Sp Oblig Sub Ser A (12) Zero Coupon 10/1/2024 AAA 17,875 4,267,656
Miami Dade Cnty FL Sp Oblig Sub Ser B (12) 5.00% 10/1/2037 AAA 1,250 1,100,000
Orange Cnty FL Tourist Dev Tax Rev (2) 6.00% 10/1/2016 AAA 710 713,571
Orange Cnty FL Tourist Dev Tax Rev Ser A (2) 5.00% 10/1/2014 AAA 1,000 973,750
Tampa FL Sports Auth Rev Tampa Bay Arena Proj (12) 6.00% 10/1/2015 AAA 450 485,438
Taylor Cnty FL Sales Tax Rev (6) 5.625% 10/1/2030 AAA 700 695,625
Village Ctr Cmnty Dev Dist FL Recreational Rev Ser A (12) 5.00% 11/1/2023 AAA 1,500 1,366,875
==========
Total 11,949,165
------------------------------------------------------------------------------------------------------------------------------------
Pollution Citrus Cnty FL Poll Ctrl Rev FL Pwr Corp (12) 6.625% 1/1/2027 AAA 5,740 5,955,250
9.82% Hillsborough Cnty FL Ind Dev Auth Poll Ctrl Rev Tampa Elec 8.00% 5/1/2022 AA 2,500 2,687,500
Jacksonville FL Poll Rev Anheuser-Busch Proj 5.70% 8/1/2031 A+ 1,150 1,125,563
==========
Total 9,768,313
------------------------------------------------------------------------------------------------------------------------------------
Power Gainesville FL Utils Sys Rev Ser A 5.20% 10/1/2022 AA 2,000 1,885,000
5.11% Jacksonville FL Elec Auth Rev Elec Sys Ser 3-C 5.625% 10/1/2035 Aa2 1,000 971,250
Puerto Rico Elec Pwr Auth Pwr Rev Ser EE 4.75% 7/1/2024 A- 2,545 2,226,875
==========
Total 5,083,125
------------------------------------------------------------------------------------------------------------------------------------
Prere- Dunedin FL Hosp Rev Mease Hlth Care (12) 6.75% 11/15/2021 AAA 1,000 1,045,000
funded Hillsborough Cnty FL Sch Brd CTFS Partn (12) 6.00% 7/1/2012 AAA 1,845 1,962,508
17.99% Manatee Cnty FL Pub Util Rev Ser 91A (12) 6.75% 10/1/2013 AAA 1,000 1,042,710
Orlando & Orange Cnty Expwy Auth FL Expwy Rev (6) 6.50% 7/1/2020 AAA 395 404,358
Puerto Rico Elec Pwr Auth Pwr Rev RIBs (9)+ 7.378% 7/1/2023 AAA 1,500 1,620,000
Puerto Rico Muni Fin Agy PR Ser A 6.50% 7/1/2019 AAA 2,915 3,170,063
Puerto Rico Tel Auth Rev RIBs (12)+ 6.42% 1/25/2007 AAA 3,000 3,187,500
Tampa FL Rev Allegany Hlth Sys St Joseph (12) 6.70% 12/1/2018 AAA 5,000 5,487,498
==========
Total 17,919,637
------------------------------------------------------------------------------------------------------------------------------------
Transpor- Dade Cnty FL Seaport (12) 5.125% 10/1/2026 AAA 2,235 2,067,375
tation Jacksonville FL Port Auth Arpt Rev Ser A AMT# (6) 6.25% 10/1/2024 AAA 1,000 1,035,000
13.29% Miami Dade Cnty FL Expwy Authtoll Sys Rev (6) 6.375% 7/1/2029 AAA 1,250 1,345,313
Pensacola FL Arpt Rev Ser A AMT# (12) 6.125% 10/1/2018 AAA 1,250 1,310,938
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser B 6.00% 7/1/2031 A 2,000 2,087,500
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser B 6.50% 7/1/2027 A 1,000 1,092,500
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser C 6.00% 7/1/2029 A 880 918,500
See Notes to Financial Statements 29
<PAGE>
Schedule of Investments (continued)
FLORIDA SERIES September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Puerto Rico Comwlth Hwy & Transn Auth Transn Rev
Transn Rev Ser PMD-9 RIBs+ (9) 7.60% 7/1/2026 AAA $ 500 $ 532,499
Santa Rosa Bay FL Brdg Auth Rev 6.25% 7/1/2028 aa3 1,000 948,750
Santa Rosa Bay FL Brdg Auth Rev Zero Coupon 7/1/2015 BB+ 3,140 1,197,125
Santa Rosa Bay FL Brdg Auth Rev Zero Coupon 7/1/2022 BB+ 3,000 686,250
==========
Total 13,221,750
------------------------------------------------------------------------------------------------------------------------------------
Water/ Melbourne FL Wtr & Swr Rev (6) Zero Coupon 10/1/2025 AAA 4,185 967,781
Sewer Melbourne FL Wtr & Swr Rev (6) 5.25% 10/1/2030 AAA 3,500 3,290,000
14.57% Miami Beach FL Wtr & Swr Rev (2) 5.50% 9/1/2027 AAA 1,000 977,500
Miami-Dade Cnty FL Wtr & Swr Rev Ser A (6) 5.00% 10/1/2029 AAA 1,000 898,750
St. Lucie West Svcs Dist FL Sr Lien Wtr Mgmt
Benefit Ser A (12) 5.25% 5/1/2025 AAA 2,000 1,887,500
Tampa Bay Wtr FL Util Sys Rev (6) 6.00% 10/1/2024 AAA 3,000 3,123,750
Tampa Bay Wtr FL Util Sys Rev Ser B (6) 4.75% 10/1/2027 AAA 3,945 3,358,181
==========
Total 14,503,462
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 98.47% (Cost $96,280,082) $98,001,308
====================================================================================================================================
Schedule of Investments
PENNSYLVANIA SERIES September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education Gettysburg PA Muni Auth College Rev Ser B (2) 4.75% 8/15/2018 AAA $1,200 $ 1,071,000
15.50% Montgomery Cnty PA Ind Dev Auth Rev Hill Sch Proj (12) 5.35% 8/15/2027 Aaa 2,250 2,129,063
New Wilmington PA Muni Auth Rev Westminster College (1) 5.35% 3/1/2028 A 1,000 880,000
Pennsylvania St Higher Ed Assistance Agy Student Ln Rev
RIBs AMT# + (2) 7.601% 3/1/2022 AAA 3,000 3,236,250
Pennsylvania St Higher Ed Fac Auth Bryn Mawr College (2) 5.125% 12/1/2029 AAA 400 364,000
Pennsylvania St Higher Ed Fac Auth Drexel Univ 6.00% 5/1/2029 A- 800 803,000
Pennsylvania St Higher Ed Fac Auth Ser A (12) 6.625% 8/15/2009 AAA 325 343,281
Pennsylvania St Higher Ed Fac Auth Rev Univ Sciences
Philadelphia (12) 5.25% 11/1/2025 AAA 1,225 1,148,438
Pennsylvania St Higher Ed Facs Auth Rev UPMC Hlth Sys
Ser A (9) 5.00% 8/1/2029 AAA 500 435,625
Puerto Rico Ind Tourist Ed Med & Envirml Ctrl Fac
Ana G Mendez Univ Sys 5.375% 2/1/2029 BBB 1,000 920,000
State Pub Sch Bldg Auth PA College Rev College Rev (2) Zero Coupon 7/15/2014 AAA 295 136,069
State Pub Sch Bldg Auth PA College Rev College Rev (2) Zero Coupon 7/15/2015 AAA 295 127,588
State Pub Sch Bldg Auth PA College Rev College Rev (2) Zero Coupon 7/15/2016 AAA 295 119,105
State Pub Sch Bldg Auth PA College Rev
Northhampton Area Cmnty Coll (2) 5.75% 3/1/2020 AAA 1,775 1,786,094
University Puerto Rico Rev Univ Rev Ser O (12) 5.375% 6/1/2030 AAA 750 723,750
==========
Total 14,223,263
------------------------------------------------------------------------------------------------------------------------------------
Finance Delaware Valley PA Regl Fin Auth Loc Govt Rev Ser C (2) 7.75% 7/1/2027 AAA 1,000 1,275,000
4.07% Puerto Rico Comwlth Infrastructure Fin Auth Ser A 5.50% 10/1/2040 AAA 2,500 2,456,250
==========
Total 3,731,250
------------------------------------------------------------------------------------------------------------------------------------
General Downingtown PA Area Sch Dist (9) 4.75% 2/1/2013 Aaa 1,000 942,499
Obligation Lancaster PA Ser A (6) 4.50% 5/1/2028 AAA 1,950 1,584,375
19.35% North East PA Sch Dist (6) 5.20% 9/1/2023 AAA 1,655 1,549,494
30 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
PENNSYLVANIA SERIES September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Philadelphia PA Sch Dist Ser B (2) 5.25% 4/1/2017 AAA $1,000 $ 971,250
Puerto Rico Comwlth (12) 5.00% 7/1/2024 AAA 1,000 930,000
Puerto Rico Comwlth (9) 5.00% 7/1/2027 AAA 500 461,250
Puerto Rico Comwlth Pub Impt 4.50% 7/1/2023 A 2,000 1,682,500
Puerto Rico Comwlth Ser A 6.00% 7/1/2014 A 1,000 1,032,500
Ridley PA Sch Dist (6) 5.00% 11/15/2029 AAA 2,000 1,770,000
Somerset Cnty PA Ser A (6) 5.00% 10/1/2027 Aaa 3,500 3,119,375
Spring-Ford PA Area Sch Dist PA (6) 4.75% 3/1/2025 Aaa 1,500 1,291,875
Tyrone PA Area Sch Dist (12) 4.85% 9/15/2014 AAA 1,650 1,548,938
West Mifflin PA Area Sch Dist (6) 4.875% 2/15/2023 AAA 1,000 885,000
==========
Total 17,769,056
------------------------------------------------------------------------------------------------------------------------------------
Healthcare Chester Cnty PA Hlth & Ed Fac Auth Hlth Sys
9.92% Rev RIBs+ (2) 7.22% 5/15/2020 AAA 2,600 2,577,249
Delaware Cnty PA Auth Hosp Rev Crozer Chester Med Ctr (1) 5.30% 12/1/2027 A 1,000 865,000
Delaware Cnty PA Auth Hosp Rev Crozer Chester Med Ctr (1) 5.375% 12/1/2018 A 1,000 905,000
Pottsville PA Hosp Auth Hosp Rev Hosp & Warne Clinic (1) 5.625% 7/1/2024 A 500 458,750
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl Facs
Rev Hosp Mutuo Oblig Grp Ser A (12) 6.25% 7/1/2024 AAA 850 886,125
Sayre PA Hlth Care Fac Auth Rev Tioga Nursing Fac Ser A (2) 7.25% 10/1/2018 AAA 1,500 1,518,000
Scranton-Lackawanna PA Hlth & Welfare Auth Rev Hosp
Moses Taylor Hosp Proj 6.20% 7/1/2017 BB- 1,055 929,719
York Cnty PA Hosp Auth Rev York Hosp (2) 5.25% 7/1/2017 AAA 1,000 960,000
==========
Total 9,099,843
------------------------------------------------------------------------------------------------------------------------------------
Housing Pennsylvania Hsg Fin Agy Sing Fam Mtg Ser 41-B AMT# 6.65% 4/1/2025 AA+ 990 1,022,175
3.73% Pennsylvania Hsg Fin Agy Sing Fam Mtg Ser 42 AMT# 6.85% 4/1/2025 AA+ 1,980 2,059,200
Pennsylvania Hsg Fin Agy Sing Fam Mtg Ser 59-A AMT# 5.80% 10/1/2029 AA+ 350 342,125
==========
Total 3,423,500
------------------------------------------------------------------------------------------------------------------------------------
Industrial Bradford Cnty PA Ind Dev Auth Intl Paper Co Proj
1.39% Ser A AMT# 6.60% 3/1/2019 BB+ 1,250 1,273,438
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Allegheny Cnty PA Redev Auth Tax Increment Rev
aneous Warerfront Proj Ser A 6.30% 12/15/2018 A-* 1,000 1,010,000
8.37% Philadelphia PA Auth Ind Dev Rev Ed Cmnty Foreign
Med Grads (12) 5.00% 6/1/2015 AAA 400 374,500
Philadelphia PA Auth Ind Dev Rev Natl Board
Med Examiners (12) 4.60% 5/1/2012 AAA 1,000 943,750
Philadelphia PA Pkg Auth Rev Ser A (2) 5.25% 2/15/2029 AAA 180 166,950
Pittsburgh & Allegheny Cnty PA Hotel Room (2) 5.00% 2/1/2024 AAA 2,540 2,308,225
Pittsburgh & Allegheny Cnty PA Pub Auditorium
Hotel Room (2) 5.125% 2/1/2035 AAA 2,000 1,800,000
Washington Cnty PA Auth Rev Cap Fdg Rev Proj &
Equip Prog (2) 6.15% 12/1/2029 AAA 1,000 1,075,000
==========
Total 7,678,425
------------------------------------------------------------------------------------------------------------------------------------
Pollution Allegheny Cnty PA Ind Dev Auth Rev Envirml Impt USX Proj 6.10% 7/15/2020 aa1 1,000 963,750
2.77% York Cnty PA Ind Dev Auth Poll Ctrl Rev Pub Svc
Elec & Gas Ser A (12) 6.45% 10/1/2019 AAA 1,475 1,574,563
==========
Total 2,538,313
------------------------------------------------------------------------------------------------------------------------------------
Power Pennsylvania Econ Dev Recov Rev Northhampton
4.26% Gen Ser A AMT# 6.60% 1/1/2019 BB- 1,500 1,464,375
Philadelphia PA Gas Wks Rev First Ser B (9) 5.00% 7/1/2028 AAA 500 444,375
Puerto Rico Elec Pwr Auth Pwr Rev Ser HH (9) 5.25% 7/1/2029 AAA 1,000 953,750
Puerto Rico Elec Pwr Auth Pwr Rev Ser X 6.00% 7/1/2015 A- 1,000 1,042,500
==========
Total 3,905,000
------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 31
<PAGE>
Schedule of Investments (continued)
PENNSYLVANIA SERIES September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Prere- Bethlehem PA Area Sch Dist PA (12) 6.00% 3/1/2016 AAA $1,000 $ 1,062,500
funded Pennsylvania Conv Ctr Auth Rev Ser A (6) 6.70% 9/1/2016 AAA 855 970,425
16.51% Pennsylvania Intergovt Coop Spl Tax Rev Funding Prog (6) 6.75% 6/15/2021 AAA 2,000 2,177,499
Philadelphia PA Gas Wks Rev Twelfth Ser B (12) 7.00% 5/15/2020 AAA 2,220 2,580,749
Puerto Rico Comwlth 6.45% 7/1/2017 AAA 1,900 2,066,250
Puerto Rico Comwlth (12) 6.45% 7/1/2017 AAA 700 761,250
Puerto Rico Elec Pwr Auth Pwr Rev RIBs (9)+ 7.378% 7/1/2023 AAA 3,000 3,240,000
Puerto Rico Elec Pwr Auth Pwr Rev Ser T RIBs (9)+ 8.094% 7/1/2018 AAA 1,500 1,738,125
Puerto Rico Elec Pwr Auth Pwr Rev Ser X 6.125% 7/1/2021 Aaa 500 547,500
==========
Total 15,144,298
------------------------------------------------------------------------------------------------------------------------------------
Transpor- Allegheny Cnty PA Arpt Rev (12) 5.00% 1/1/2017 AAA 2,000 1,890,000
tation Allegheny Cnty PA Port Auth Spl Rev Transn (12) 6.125% 3/1/2029 AAA 500 516,874
12.57% Delaware River Port Auth PA & NJ (9) 6.00% 1/1/2019 AAA 1,000 1,041,250
Pennsylvania St Tpk Comm Tpk Rev Ser N (12) 5.50% 12/1/2017 AAA 245 244,694
Philadelphia PA Auth For Indl Dev Arpt Rev Philadelphia
Arpt Sys Proj Ser A AMT# (6) 5.00% 7/1/2015 AAA 815 768,138
Puerto Rico Comwlth Hwy 6.625% 7/1/2012 A 2,615 2,739,213
Puerto Rico Port Auth Rev Ser D AMT# (6) 7.00% 7/1/2014 AAA 1,000 1,037,510
Southeastern PA Transn Auth (6) 4.75% 3/1/2029 AAA 1,575 1,336,781
Southeastern PA Transn Auth Spl Rev Ser B (6) 5.25% 3/1/2016 AAA 2,000 1,957,500
==========
Total 11,531,960
------------------------------------------------------------------------------------------------------------------------------------
Water/ Bucks Cnty PA Wtr & Swr Auth Neshaminy Interceptor
Sewer Swr Sys (2) 5.50% 6/1/2017 Aaa 565 563,588
0.61% Total Municipal Bonds 99.05% (Cost $89,416,510) $90,881,934
====================================================================================================================================
Schedule of Investments
MICHIGAN SERIES September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education Eastern MI Univ Rev (6) 5.50% 6/1/2027 AAA $ 500 $ 486,250
6.95% Grand Valley MI St Univ Rev (6) 5.50% 2/1/2018 AAA 1,150 1,162,938
Saginaw Valley St Univ MI Rev (2) 5.25% 7/1/2019 AAA 1,000 963,750
Wayne Cnty MI Cmnty College Cmnty College Impt (2) 5.50% 7/1/2019 AAA 565 562,881
==========
Total 3,175,819
------------------------------------------------------------------------------------------------------------------------------------
Finance Puerto Rico Comwlth Infrastructure Fin Auth Ser A 5.50% 10/1/2040 AAA 500 491,250
1.08%
------------------------------------------------------------------------------------------------------------------------------------
General Anchor Bay MI Sch Dist Sch Bldg & Site Ser I (6) 6.00% 5/1/2023 AAA 1,600 1,652,000
Obligation Belding MI Area Schs (2) 5.00% 5/1/2026 AAA 400 363,497
41.19% Detroit MI City Sch Dist Ser B (6) 4.75% 5/1/2028 AAA 2,200 1,867,250
Greenville MI Pub Sch (9) 6.00% 5/1/2025 AAA 1,000 1,031,250
Hartland MI Cons Sch Dist (6) 6.00% 5/1/2021 AAA 1,950 2,025,563
Howell MI Pub Sch (12) 6.00% 5/1/2025 AAA 1,770 1,814,250
Kaleva Norman Etc MI Sch Dist Bldg & Site (6) 6.00% 5/1/2025 Aaa 600 618,750
Lake Orion MI Cmnty Sch Dist Ser A (9) 6.00% 5/1/2017 AAA 1,335 1,405,088
Memphis MI Cmnty Schs (6) 5.25% 5/1/2029 Aaa 150 140,813
Potterville MI Pub Sch (9) 6.00% 5/1/2029 AAA 1,000 1,030,000
Puerto Rico Comwlth RIBs+ 6.521% 7/1/2029 A* 925 982,813
32 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
MICHIGAN SERIES September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Richmond MI Cmnty Sch Dist (6) 4.75% 5/1/2022 AAA $ 475 $ 414,438
Saline MI Area Schs (6) 5.50% 5/1/2015 AAA 750 757,500
South Lyon MI Cmnty Sch (9) 5.50% 5/1/2023 AAA 1,000 988,750
Southgate MI Cmnty Sch Dist (6) 5.00% 5/1/2025 AAA 1,200 1,093,500
Van Buren Cnty MI (2) 5.00% 5/1/2017 AAA 600 566,250
Van Buren Cnty MI (2) 5.00% 5/1/2018 AAA 450 421,875
Wayne Cnty MI Bldg Auth Cap Impt Ser A (12) 5.25% 6/1/2016 AAA 500 490,000
Zeeland MI Pub Schs (6) 5.25% 5/1/2022 AAA 1,200 1,141,500
==========
Total 18,805,087
------------------------------------------------------------------------------------------------------------------------------------
Healthcare Kalamazoo MI Hosp Fin Auth Fac Rev Fac Rev RIBs+ (6) 5.858% 6/1/2011 AAA 4,000 4,045,000
12.20% Puerto Rico Ind Tourist Ed Ryder Mem Hosp Proj Ser A 6.70% 5/1/2024 BB- 1,575 1,525,781
==========
Total 5,570,781
------------------------------------------------------------------------------------------------------------------------------------
Housing Michigan St Hsg Dev Auth Ser B 6.95% 12/1/2020 AA+ 380 392,350
3.92% Michigan St Hsg Dev Auth Ser D 5.95% 12/1/2016 AA+ 500 514,375
Michigan St Hsg Dev Auth Ser E AMT# 6.20% 12/1/2027 AA+ 875 884,844
==========
Total 1,791,569
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Michigan Muni Bd Auth Rev St Revolving Fd 5.125% 10/1/2020 AAA 750 698,437
aneous Michigan Muni Bd Auth Rev INSD B (2) 6.75% 11/1/2014 AAA 295 318,969
5.40% Michigan St Ctfs Partn (2) Zero Coupon 6/1/2022 AAA 2,000 565,000
Michigan St Hse Representative Ctfs Partn (2) Zero Coupon 8/15/2024 AAA 3,565 882,338
==========
Total 2,464,744
------------------------------------------------------------------------------------------------------------------------------------
Power Grand Haven MI Elec Rev (12) 5.25% 7/1/2016 AAA 450 444,374
9.07% Michigan St Strategic Fd Disp Rev Genesee
Pwr Station AMT# 7.50% 1/1/2021 BB* 500 513,750
Michigan St Strategic Fd Ltd Oblig (2) 7.00% 5/1/2021 AAA 500 587,500
Michigan St Strategic Fd Ltd Oblig Rev Detroit Ed Ser BB (12) 7.00% 7/15/2008 AAA 350 398,563
Puerto Rico Elec Pwr Auth Pwr Rev Ser EE 4.75% 7/1/2024 A- 1,395 1,220,625
Puerto Rico Elec Pwr Auth Pwr Rev Ser HH (9) 5.25% 7/1/2029 AAA 1,025 977,594
==========
Total 4,142,406
------------------------------------------------------------------------------------------------------------------------------------
Prere- Alpena MI Pub Schs (12) 5.625% 5/1/2022 AAA 200 210,250
funded Alpena MI Pub Schs (12) 5.625% 5/1/2022 AAA 300 315,375
11.03% Huron Valley MI Sch Dist (6) 5.75% 5/1/2022 AAA 250 264,687
Lake Orion MI Cmnty Sch Dist (2) 7.00% 5/1/2020 AAA 1,050 1,161,563
Lakeview MI Cmnty Sch (6) 5.60% 5/1/2022 AAA 210 220,500
Michigan Muni Bd Auth Rev INSD Ser G (2) 6.75% 11/1/2014 AAA 1,205 1,322,488
Puerto Rico Elec Pwr Auth Pwr Rev Ser T RIBs (9)+ 8.094% 7/1/2018 AAA 500 579,375
Puerto Rico Tel Auth Rev RIBs (12)+ 6.82% 1/16/2015 AAA 900 963,000
==========
Total 5,037,238
------------------------------------------------------------------------------------------------------------------------------------
Transpor- Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser B 6.00% 7/1/2031 A 1,000 1,043,750
tation Puerto Rico Comwlth Hwy & Transn Auth Transn Rev Ser B 6.50% 7/1/2027 A 1,000 1,092,500
6.28% Wayne Charter Cnty MI Arpt Rev AMT Amt-Detroit Met
Wayne Cnty Ser A AMT# (12) 5.375% 12/1/2016 AAA 750 733,125
==========
Total 2,869,375
------------------------------------------------------------------------------------------------------------------------------------
Water/ Detroit MI Sewer Disp Rev Ser A (12) 5.00% 7/1/2022 AAA 500 457,500
Sewer Muskegon Heights MI Wtr Sys Ser A (12) 5.625% 11/1/2020 Aaa 300 300,750
1.66%
==========
Total 758,250
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 98.78% (Cost $43,588,328) $45,106,519
====================================================================================================================================
See Notes to Financial Statements 33
<PAGE>
Schedule of Investments
GEORGIA SERIES September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Education Fulton Cnty GA Dev Auth Rev Morehouse College Proj (2) 5.875% 12/1/2030 AAA $ 500 $ 508,125
10.62% Private Colleges & Univ Auth GA Mercer Hsg Corp
Proj Ser A (1) 5.375% 6/1/2031 A 1,000 910,000
Private Colleges & Univ Auth GA Mercer Univ Proj Ser A 5.25% 10/1/2025 A3 1,300 1,165,125
Richmond County GA Pub Facs Cnty Bd Ed Proj (2) 6.00% 11/1/2024 Aaa 500 523,125
==========
Total 3,106,375
------------------------------------------------------------------------------------------------------------------------------------
General Atlanta GA 5.60% 12/1/2015 AA 95 96,544
Obligation DeKalb Cnty GA 6.00% 1/1/2020 Aa1 250 256,563
7.91% Puerto Rico Comwlth (9) 5.50% 7/1/2017 AAA 500 508,750
Puerto Rico Comwlth RIBs+ 6.521% 7/1/2029 A* 1,125 1,195,311
Puerto Rico Comwlth RIBs+ (9) 7.329% 7/1/2020 AAA 250 255,938
==========
Total 2,313,106
------------------------------------------------------------------------------------------------------------------------------------
Healthcare Cobb Cnty GA Hosp Auth Rev Antic Ctfs Ser A (2) 4.75% 4/1/2026 AAA 2,050 1,737,375
8.85% Glynn-Brunswick GA Mem Hosp Auth Rev Southeast
GA Hlth (12) 6.00% 8/1/2016 AAA 400 413,500
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl
Fac Hosp De La Concepcion 6.50% 11/15/2020 Aa2 410 438,188
==========
Total 2,589,063
------------------------------------------------------------------------------------------------------------------------------------
Housing DeKalb Cnty GA Hsg Auth Multi Fam Rev Lakes At
5.96% Indian Creek AMT# (9) 7.15% 1/1/2025 AAA 500 540,000
Georgia St Hsg & Fin Auth Rev Sing Fam Mtg Sub A-2
AMT# (7) 6.45% 12/1/2027 AAA 210 215,250
Georgia St Hsg & Fin Auth Rev Sing Fam Mtg Sub
Ser A-2 AMT# (7) 6.40% 12/1/2015 AAA 950 986,813
==========
Total 1,742,063
------------------------------------------------------------------------------------------------------------------------------------
Industrial Albany Dougherty GA Payroll Dev Auth Procter &
4.70% Gamble AMT# 5.20% 5/15/2028 Aa2 500 451,250
Effingham Cnty GA Dev Auth Fort James Proj AMT# 5.625% 7/1/2018 aa2 1,000 923,750
==========
Total 1,375,000
------------------------------------------------------------------------------------------------------------------------------------
Miscell- Association Cnty GA Leasing Proj Rockdale Cnty GA
aneous Pub Purp Proj (2) 5.625% 7/1/2020 AAA 25 25,000
8.78% Cobb Marietta GA Coliseum & Exhibit Hall Auth Rev (12) 5.625% 10/1/2026 AAA 1,000 1,001,250
Fayette Cnty GA Pub Facs Auth Rev Criminal Justice
Center Proj 6.00% 6/1/2030 Aa2 1,000 1,031,250
George L Smith II GA World Congress Ctr Auth Rev
Domed Stadium Proj AMT# (12) 5.75% 7/1/2015 AAA 500 510,625
==========
Total 2,568,125
------------------------------------------------------------------------------------------------------------------------------------
Power Puerto Rico Elec Pwr Auth Pwr Rev Ser HH (9) 5.25% 7/1/2029 AAA 3,000 2,861,250
9.78%
------------------------------------------------------------------------------------------------------------------------------------
Prere- Albany GA Sew Sys Rev (12) 6.625% 7/1/2017 AAA 100 105,500
funded Atlanta GA 6.125% 12/1/2023 AA 2,000 2,142,498
20.40% Chatham Cnty GA Sch Dist (12) 6.75% 8/1/2020 AAA 1,035 1,113,919
Cobb Cnty GA Kennestone Hosp Auth Rev Ctfs
Ser 86-A (12) Zero Coupon 8/1/2015 AAA 395 160,469
Metropolitan Atlanta GA Rapid Transn Auth Sales Tax
Rev Ser O 6.55% 7/1/2020 AAA 1,000 1,035,400
Puerto Rico Elec Pwr Auth Pwr Rev Ser T RIBs (9)+ 8.094% 7/1/2018 AAA 1,000 1,158,750
Savannah GA Economic Dev Auth Rev Sub Ser C Zero Coupon 12/1/2021 AAA 1,000 246,250
==========
Total 5,962,786
------------------------------------------------------------------------------------------------------------------------------------
Solid Cobb Cnty GA Solid Waste Mgmt Auth Rev AMT# 6.40% 1/1/2015 AAA 100 105,750
Waste
0.36%
------------------------------------------------------------------------------------------------------------------------------------
34 See Notes to Financial Statements
<PAGE>
Schedule of Investments (continued)
GEORGIA SERIES September 30, 2000
Rating: Principal
Maturity S&P or Amount
Investments Coupon Date Moody's(a) (000) Value
====================================================================================================================================
Transpor- Atlanta GA Arpt Facs Rev AMT# (12) Zero Coupon 1/1/2010 AAA $1,500 $ 881,250
tation Puerto Rico Comwlth Hwy & Transn Auth Transn
8.00% Rev Ser A (12) 4.75% 7/1/2038 AAA 1,075 925,844
Puerto Rico Comwlth Hwy & Transn Auth Transn
Rev Transn Rev Ser PMD-9 RIBs+ (9) 7.60% 7/1/2026 AAA 500 532,500
==========
Total 2,339,594
------------------------------------------------------------------------------------------------------------------------------------
Water/ Atlanta GA Wtr & Waste Wtr Rev Ser A (6) 5.00% 11/1/2029 AAA 1,000 885,000
Sewer Augusta GA Wtr & Swr Rev (9) 5.25% 10/1/2030 AAA 500 470,624
14.01% De Kalb Cnty GA Wtr & Swr 5.00% 10/1/2028 Aa2 355 319,944
Douglasville Douglas Cnty GA Wtr & Swr Auth
Wtr & Swr Rev (6) 4.50% 6/1/2023 AAA 1,970 1,625,250
Forsyth Cnty GA Wtr & Sew Auth Rev 6.25% 4/1/2021 Aa2 750 795,938
==========
Total 4,096,756
------------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 99.37% (Cost $28,732,239) $29,059,868
====================================================================================================================================
</TABLE>
ETM Escrow to Maturity
(a) Unaudited.
# Income from the security may be subject to Alternative
Minimum Tax (AMT).
* This investment has not been rated by an independent ratings
service but is, in Lord Abbett's opinion, of comparable
quality to the rating shown.
** Rated by Fitch.
+ RIB-Residual interest bond. The interest rate is subject to
change periodically and inversely to the prevailing market
rate. The interest rate shown is the rate in effect at
September 30, 2000.
Insured or guaranteed by the indicated municipal bond
insurance corporation or Federal Agency:
(1) American Capital Assets
(2) American Municipal Bond Assurance Corporation
(3) Asset Guaranty
(4) Bond Investors Guaranty
(5) College Construction Loan Insurance Association
(6) Financial Guaranty Insurance Company
(7) Federal Housing Administration
(8) Federal National Mortgage Association
(9) Financial Security Assurance, Inc.
(10) Government National Mortgage Association
(11) Government National Mortgage Association/Federal
National Mortgage Association
(12) Municipal Bond Investors Assurance
See Notes to Financial Statements 35
<PAGE>
Statements of Assets and Liabilities
September 30, 2000
<TABLE>
<CAPTION>
ASSETS: National New York Texas
<S> <C> <C> <C>
Investment in securities, at cost $ 537,924,355 $ 225,039,376 $ 70,337,891
------------------------------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 540,804,486 $ 230,714,047 $ 72,112,408
Cash - 3,103,792 864,290
Receivables:
Interest 8,480,297 3,518,944 1,510,356
Investment securities sold 6,825,768 4,254,436 1,067,746
Capital shares sold 267,668 152,982 11,539
------------------------------------------------------------------------------------------------------------------------------------
Total assets 556,378,219 241,744,201 75,566,339
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 7,801,170 6,710,798 547,600
Payable to bank 5,236,397 - -
Income distribution 1,903,880 847,593 271,157
Capital shares reacquired 688,813 91,331 205,878
Management fees 228,517 98,295 31,610
Directors'/Trustees' fees 288,584 143,886 31,271
12b-1 distribution fees 280,551 130,573 37,909
Accrued expenses and other liabilities 169,552 81,608 35,865
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 16,597,464 8,104,084 1,161,290
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS: $ 539,780,755 $ 233,640,117 $ 74,405,049
====================================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital 563,971,850 246,704,930 77,944,032
Accumulated undistributed (distributions in excess of) net investment income (982,784) (631,554) (140,102)
Accumulated net realized loss from investments (26,088,442) (18,107,930) (5,173,398)
Net unrealized gain (loss) on investments 2,880,131 5,674,671 1,774,517
------------------------------------------------------------------------------------------------------------------------------------
Net assets $ 539,780,755 $ 233,640,117 $ 74,405,049
====================================================================================================================================
OFFERING PRICE:
Net assets by class:
Class A Shares $ 487,188,007 $ 228,361,787 $ 74,405,049
Class B Shares $ 17,594,292 - -
Class C Shares $ 34,998,456 $ 5,278,330 -
Outstanding shares by class:
Class A Shares 45,293,315 21,688,889 7,892,749
Class B Shares 1,631,342 - -
Class C Shares 3,248,814 500,914 -
Net asset value, offering and redemption price per share (net assets divided by
outstanding shares):
Class A Shares-Net asset value $ 10.76 $ 10.53 $ 9.43
Class A Shares-Maximum offering price
(Net asset value plus sales charge 3.25%) $ 11.12 $ 10.88 $ 9.75
Class B Shares-Net asset value $ 10.79 - -
Class C Shares-Net asset value $ 10.77 $ 10.54 -
====================================================================================================================================
ASSETS: New Jersey Connecticut Missouri
Investment in securities, at cost $ 147,855,497 $ 96,205,990 $ 118,214,418
------------------------------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 150,811,452 $ 95,991,931 $ 118,700,269
Cash 5,784,778 1,071,129 234,718
Receivables:
Interest 1,962,398 1,489,149 1,540,049
Investment securities sold 2,424,542 - -
Capital shares sold 80,867 73,838 206,333
------------------------------------------------------------------------------------------------------------------------------------
Total assets 161,064,037 98,626,047 120,681,369
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 9,180,394 1,226,147 -
Payable to bank - - -
Income distribution 558,200 338,089 422,993
Capital shares reacquired 32,491 4,499 15,346
Management fees 63,623 40,819 50,371
Directors'/Trustees' fees 42,283 25,073 28,313
12b-1 distribution fees 72,411 49,702 60,093
Accrued expenses and other liabilities 66,703 40,362 46,071
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 10,016,105 1,724,691 623,187
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS: $ 151,047,932 $ 96,901,356 $ 120,058,182
====================================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital 155,470,194 101,261,661 123,284,988
Accumulated undistributed (distributions in excess of) net investment income (592,264) (144,813) (447,007)
Accumulated net realized loss from investments (6,785,953) (4,001,433) (3,265,650)
Net unrealized gain (loss) on investments 2,955,955 (214,059) 485,851
------------------------------------------------------------------------------------------------------------------------------------
Net assets $ 151,047,932 $ 96,901,356 $ 120,058,182
====================================================================================================================================
OFFERING PRICE:
Net assets by class:
Class A Shares $ 151,047,932 $ 96,901,356 $ 120,058,182
Class B Shares - - -
Class C Shares - - -
Outstanding shares by class:
Class A Shares 30,476,197 9,901,162 24,216,219
Class B Shares - - -
Class C Shares - - -
Net asset value, offering and redemption price per share (net assets divided by
outstanding shares):
Class A Shares-Net asset value $ 4.96 $ 9.79 $ 4.96
Class A Shares-Maximum offering price
(Net asset value plus sales charge 3.25%) $ 5.13 $ 10.12 $ 5.13
Class B Shares-Net asset value - - -
Class C Shares-Net asset value - - -
====================================================================================================================================
ASSETS: Hawaii Washington Minnesota
Investment in securities, at cost $ 68,333,754 $ 43,320,663 $ 20,025,240
------------------------------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 69,101,758 $ 44,159,353 $ 19,910,064
Cash 421,762 - 100,647
Receivables:
Interest 1,004,385 585,769 257,287
Investment securities sold - 484,909 -
Capital shares sold 3,944 14,598 1,011,094
------------------------------------------------------------------------------------------------------------------------------------
Total assets 70,531,849 45,244,629 21,279,092
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased - 489,695 309,067
Payable to bank - 7,045 -
Income distribution 242,128 159,849 76,046
Capital shares reacquired - 14,494 8,050
Management fees 29,518 18,881 -
Directors'/Trustees' fees 18,465 15,923 1,418
12b-1 distribution fees 17,978 - -
Accrued expenses and other liabilities 33,609 26,983 20,222
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 341,698 732,870 414,803
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS: $ 70,190,151 $ 44,511,759 $ 20,864,289
====================================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital 72,638,131 45,897,473 21,888,767
Accumulated undistributed (distributions in excess of) net investment income 108,212 473,144 (66,118)
Accumulated net realized loss from investments (3,324,196) (2,697,548) (843,184)
Net unrealized gain (loss) on investments 768,004 838,690 (115,176)
------------------------------------------------------------------------------------------------------------------------------------
Net assets $ 70,190,151 $ 44,511,759 $ 20,864,289
====================================================================================================================================
OFFERING PRICE:
Net assets by class:
Class A Shares $ 70,190,151 $ 44,511,759 $ 20,864,289
Class B Shares - - -
Class C Shares - - -
Outstanding shares by class:
Class A Shares 14,537,913 9,104,533 4,381,416
Class B Shares - - -
Class C Shares - - -
Net asset value, offering and redemption price per share (net assets divided by
outstanding shares):
Class A Shares-Net asset value $ 4.83 $ 4.89 $ 4.76
Class A Shares-Maximum offering price
(Net asset value plus sales charge 3.25%) $ 4.99 $ 5.05 $ 4.92
Class B Shares-Net asset value - - -
Class C Shares-Net asset value - - -
====================================================================================================================================
ASSETS: California Florida Pennsylvania
Investment in securities, at cost $ 189,758,920 $ 96,280,082 $ 89,416,510
------------------------------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 194,139,887 $ 98,001,308 $ 90,881,934
Cash - 2,538,394 2,598,032
Receivables:
Interest 3,692,693 1,673,184 1,321,421
Investment securities sold 5,448,857 49,849 -
Capital shares sold 13,309 207 59,077
------------------------------------------------------------------------------------------------------------------------------------
Total assets 203,294,746 102,262,942 94,860,464
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 3,662,323 1,991,106 2,452,294
Payable to bank 1,684,806 - -
Income distribution 679,246 340,645 327,191
Capital shares reacquired 134,698 198,406 200,288
Management fees 83,390 41,706 38,656
Directors'/Trustees' fees 172,822 38,231 19,593
12b-1 distribution fees 115,115 57,803 21,603
Accrued expenses and other liabilities 74,905 71,601 51,225
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 6,607,305 2,739,498 3,110,850
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS: $ 196,687,441 $ 99,523,444 $ 91,749,614
====================================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital 214,514,301 110,498,636 93,769,592
Accumulated undistributed (distributions in excess of) net investment income 148,361 18,382 (343,442)
Accumulated net realized loss from investments (22,356,188) (12,714,800) (3,141,960)
Net unrealized gain (loss) on investments 4,380,967 1,721,226 1,465,424
------------------------------------------------------------------------------------------------------------------------------------
Net assets $ 196,687,441 $ 99,523,444 $ 91,749,614
====================================================================================================================================
OFFERING PRICE:
Net assets by class:
Class A Shares $ 186,041,033 $ 94,817,150 $ 91,749,614
Class B Shares - - -
Class C Shares $ 10,646,408 $ 4,706,294 -
Outstanding shares by class:
Class A Shares 18,076,903 20,730,463 18,715,453
Class B Shares - - -
Class C Shares 1,033,807 1,027,252 -
Net asset value, offering and redemption price per share (net assets divided by
outstanding shares):
Class A Shares-Net asset value $ 10.29 $ 4.57 $ 4.90
Class A Shares-Maximum offering price
(Net asset value plus sales charge 3.25%) $ 10.64 $ 4.72 $ 5.06
Class B Shares-Net asset value - - -
Class C Shares-Net asset value $ 10.30 $ 4.58 -
====================================================================================================================================
ASSETS: Michigan Georgia
Investment in securities, at cost $ 43,588,328 $ 28,732,239
----------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 45,106,519 $ 29,059,868
Cash 473,127 -
Receivables:
Interest 801,688 515,430
Investment securities sold - 966,247
Capital shares sold 9,705 97,661
----------------------------------------------------------------------------------------------------------------
Total assets 46,391,039 30,639,206
----------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 489,695 -
Payable to bank - 1,234,716
Income distribution 163,910 105,492
Capital shares reacquired 6,191 30,719
Management fees 19,234 -
Directors'/Trustees' fees 9,590 1,944
12b-1 distribution fees - -
Accrued expenses and other liabilities 36,621 21,598
----------------------------------------------------------------------------------------------------------------
Total liabilities 725,241 1,394,469
----------------------------------------------------------------------------------------------------------------
NET ASSETS: $ 45,665,798 $ 29,244,737
================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital 47,535,732 30,023,928
Accumulated undistributed (distributions in excess of) net investment income (106,780) (97,434)
Accumulated net realized loss from investments (3,281,345) (1,009,386)
Net unrealized gain (loss) on investments 1,518,191 327,629
----------------------------------------------------------------------------------------------------------------
Net assets $ 45,665,798 $ 29,244,737
================================================================================================================
OFFERING PRICE:
Net assets by class:
Class A Shares $ 45,665,798 $ 29,244,737
Class B Shares - -
Class C Shares - -
Outstanding shares by class:
Class A Shares 9,385,793 5,772,847
Class B Shares - -
Class C Shares - -
Net asset value, offering and redemption price per share (net assets divided by
outstanding shares):
Class A Shares-Net asset value $ 4.87 $ 5.07
Class A Shares-Maximum offering price
(Net asset value plus sales charge 3.25%) $ 5.03 $ 5.24
Class B Shares-Net asset value - -
Class C Shares-Net asset value - -
================================================================================================================
</TABLE>
36 See Notes to Financial Statements 37
<PAGE>
Statements of Operations
<TABLE>
<CAPTION>
For the Year Ended September 30, 2000
-----------------------------------------------------------------------------------------------------------------------------------
National New York Texas New Jersey Connecticut
Investment Income
<S> <C> <C> <C> <C> <C>
Interest $ 32,474,759 $ 14,859,989 $ 5,026,947 $ 9,211,763 $ 6,252,773
Expenses:
Management fee 2,785,204 1,183,488 388,928 767,391 510,109
12b-1 distribution plan-Class A 1,768,104 772,333 278,995 543,870 403,025
12b-1 distribution plan-Class B 163,023 - - - -
12b-1 distribution plan-Class C 357,091 54,032 - - -
Shareholder servicing 362,949 166,351 49,743 99,996 49,784
Administration fee 59,352 21,459 6,512 15,681 13,599
Reports to shareholders 89,561 41,027 11,323 26,560 13,924
Professional 82,795 43,506 20,453 24,438 28,345
Registration 72,150 7,333 14,798 3,517 5,204
Directors'/Trustees' 33,628 14,409 1,570 6,525 4,301
Other 51,816 34,745 10,393 8,434 18,004
-----------------------------------------------------------------------------------------------------------------------------------
Gross expenses 5,825,673 2,338,683 782,715 1,496,412 1,046,295
Expense reductions (22,892) (9,284) (10,537) (5,612) (4,567)
Management fees waived - - - - -
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,802,781 2,329,399 772,178 1,490,800 1,041,728
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 26,671,978 12,530,590 4,254,769 7,720,963 5,211,045
-----------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments:
Net realized loss from
investment transactions (18,326,323) (7,442,240) (2,970,246) (5,180,332) (2,514,844)
Net change in unrealized
appreciation/depreciation
on investments 17,066,506 7,539,086 1,692,294 4,980,683 1,375,680
-----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (1,259,817) 96,846 (1,277,952) (199,649) (1,139,164)
-----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
From Operations $ 25,412,161 $ 12,627,436 $ 2,976,817 $ 7,521,314 $ 4,071,881
-----------------------------------------------------------------------------------------------------------------------------------
For the Year Ended September 30, 2000 September 30, 2000
--------------------------------------------------------------------------------------------------- ------------------------------
Missouri Hawaii Washington Minnesota California
Investment Income
Interest $ 7,182,139 $ 4,103,844 $ 2,953,787 $ 1,013,541 $ 12,525,638
Expenses:
Management fee 598,538 340,900 235,023 96,669 997,093
12b-1 distribution plan-Class A 439,006 240,976 - - 663,968
12b-1 distribution plan-Class B - - - - -
12b-1 distribution plan-Class C - - - - 107,276
Shareholder servicing 92,209 39,535 39,358 13,190 108,169
Administration fee 15,337 10,089 6,827 4,178 12,518
Reports to shareholders 21,292 11,455 9,723 3,382 28,520
Professional 27,127 17,087 14,729 16,246 34,847
Registration 5,609 2,904 6,204 3,917 3,609
Directors'/Trustees' 5,515 2,734 2,085 498 9,622
Other 21,204 10,252 20,591 4,514 -
--------------------------------------------------------------------------------------------------- ------------------------------
Gross expenses 1,225,837 675,932 334,540 142,594 1,965,622
Expense reductions (2,788) (2,743) (1,670) (24) (9,764)
Management fees waived - - - (96,669) -
--------------------------------------------------------------------------------------------------- ------------------------------
Net expenses 1,223,049 673,189 332,870 45,901 1,955,858
--------------------------------------------------------------------------------------------------- ------------------------------
Net investment income 5,959,090 3,430,655 2,620,917 967,640 10,569,780
--------------------------------------------------------------------------------------------------- ------------------------------
Realized and unrealized gain (loss) on investments:
Net realized loss from
investment transactions (1,635,808) (1,194,257) (2,226,587) (843,184) (3,562,708)
Net change in unrealized
appreciation/depreciation
on investments 964,573 1,004,913 1,731,685 886,133 5,366,845
--------------------------------------------------------------------------------------------------- ------------------------------
Net realized and unrealized
gain (loss) on investments (671,235) (189,344) (494,902) 42,949 1,804,137
--------------------------------------------------------------------------------------------------- ------------------------------
Net Increase (Decrease)
in Net Assets Resulting
From Operations $ 5,287,855 $ 3,241,311 $ 2,126,015 $ 1,010,589 $ 12,373,917)
--------------------------------------------------------------------------------------------------- ------------------------------
For the Period November 1, 1999 to September 30, 2000*
--------------------------------------------------------------------------------------------------------------------
Florida Pennsylvania Michigan Georgia
Investment Income
Interest $ 5,976,807 $ 4,917,005 $ 2,330,943 $ 1,245,376
Expenses:
Management fee 464,164 415,631 210,891 127,414
12b-1 distribution plan-Class A 306,080 230,313 - -
12b-1 distribution plan-Class B - - - -
12b-1 distribution plan-Class C 44,777 - - -
Shareholder servicing 47,166 68,443 38,203 15,423
Administration fee 11,436 12,003 10,504 5,535
Reports to shareholders 13,470 19,176 10,305 3,931
Professional 30,890 31,948 19,023 17,354
Registration 2,754 3,856 2,377 775
Directors'/Trustees' 3,795 3,765 2,037 784
Other 8,700 12,842 17,518 3,241
--------------------------------------------------------------------------------------------------------------------
Gross expenses 933,232 797,977 310,858 174,457
Expense reductions (3,578) (2,333) (1,122) (35)
Management fees waived - - - (127,414)
--------------------------------------------------------------------------------------------------------------------
Net expenses 929,654 795,644 309,736 47,008
--------------------------------------------------------------------------------------------------------------------
Net investment income 5,047,153 4,121,361 2,021,207 1,198,368
--------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments:
Net realized loss from
investment transactions (1,465,409) (2,302,921) (705,991) (646,050)
Net change in unrealized
appreciation/depreciation
on investments 2,204,249 4,229,523 1,975,239 1,693,665
--------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 738,840 1,926,602 1,269,248 1,047,615
--------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
From Operations $ 5,785,993 $ 6,047,963 $ 3,290,455 $ 2,245,983)
--------------------------------------------------------------------------------------------------------------------
For the Year Ended October 31, 1999
-----------------------------------------------------------------------------------------------------------------
Florida Pennsylvania Michigan Georgia
Investment Income
Interest $ 7,352,487 $ 6,032,242 $ 3,134,160 $ 1,424,016
Expenses:
Management fee 641,726 504,847 265,750 129,345
12b-1 distribution plan-Class A 395,900 308,528 - -
12b-1 distribution plan-Class B - - - -
12b-1 distribution plan-Class C 65,588 - - -
Shareholder servicing 94,668 76,501 50,878 18,550
Administration fee 9,784 10,546 9,648 6,282
Reports to shareholders 21,796 16,143 8,705 2,969
Professional 52,142 36,794 24,553 13,341
Registration 2,994 6,303 1,497 744
Directors'/Trustees' 4,488 3,003 1,679 470
Other 14,840 10,481 4,657 5,438
-----------------------------------------------------------------------------------------------------------------
Gross expenses 1,303,926 973,146 367,367 177,139
Expense reductions (6,562) (5,602) (2,498) (698)
Management fees waived - - - (129,345)
-----------------------------------------------------------------------------------------------------------------
Net expenses 1,297,364 967,544 364,869 47,096
-----------------------------------------------------------------------------------------------------------------
Net investment income 6,055,123 5,064,698 2,769,291 1,376,920
-----------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments:
Net realized loss from
investment transactions (3,917,644) (383,441) (1,385,665) (363,336)
Net change in unrealized
appreciation/depreciation
on investments (8,183,315) (8,873,598) (3,271,625) (2,283,607)
-----------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (12,100,959) (9,257,039) (4,657,290) (2,646,943)
-----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
From Operations $ (6,045,836) $ (4,192,341) $ (1,887,999) $ (1,270,023)
-----------------------------------------------------------------------------------------------------------------
</TABLE>
*The Trust changed its fiscal year-end.
38 See Notes to Financial Statements 39
<PAGE>
Statements of Changes in Net Assets
Year Ended September 30, 2000
<TABLE>
<CAPTION>
INCREASE(DECREASE) IN NET ASSETS
Operations: National New York Texas
<S> <C> <C> <C>
Net investment income $ 26,671,978 $ 12,530,590 $ 4,254,769
Net realized loss from investment transactions (18,326,323) (7,442,240) (2,970,246)
Net change in unrealized appreciation/depreciation on investments 17,066,506 7,539,086 1,692,294
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 25,412,161 12,627,436 2,976,817
====================================================================================================================================
Distributions to shareholders from:
Net investment income
Class A (26,210,020) (12,341,209) (4,149,860)
Class B (734,890) - -
Class C (1,614,752) (273,867) -
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders (28,559,662) (12,615,076) (4,149,860)
====================================================================================================================================
Capital share transactions:
Net proceeds from sales of shares 39,890,517 11,842,708 2,434,881
Reinvestment of distributions 17,224,696 7,096,411 2,759,399
Cost of shares reacquired (111,249,940) (40,344,068) (14,106,891)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital share transactions (54,134,727) (21,404,949) (8,912,611)
====================================================================================================================================
Net increase (decrease) in net assets (57,282,228) (21,392,589) (10,085,654)
====================================================================================================================================
NET ASSETS:
Beginning of year 597,062,983 255,032,706 84,490,703
====================================================================================================================================
End of year $ 539,780,755 $ 233,640,117 $ 74,405,049
====================================================================================================================================
Accumulated undistributed (distributions in excess of) net investment income $ (982,784) $ (631,554) $ (140,102)
====================================================================================================================================
INCREASE(DECREASE) IN NET ASSETS
Operations: New Jersey Connecticut Missouri
Net investment income $ 7,720,963 $ 5,211,045 $ 5,959,090
Net realized loss from investment transactions (5,180,332) (2,514,844) (1,635,808)
Net change in unrealized appreciation/depreciation on investments 4,980,683 1,375,680 964,573
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 7,521,314 4,071,881 5,287,855
====================================================================================================================================
Distributions to shareholders from:
Net investment income
Class A (8,267,610) (5,373,423) (6,143,146)
Class B - - -
Class C - - -
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders (8,267,610) (5,373,423) (6,143,146)
====================================================================================================================================
Capital share transactions:
Net proceeds from sales of shares 10,924,884 7,141,830 8,553,206
Reinvestment of distributions 4,436,808 2,201,080 4,479,772
Cost of shares reacquired (26,804,601) (22,898,242) (17,894,142)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital share transactions (11,442,909) (13,555,332) (4,861,164)
====================================================================================================================================
Net increase (decrease) in net assets (12,189,205) (14,856,874) (5,716,455)
====================================================================================================================================
NET ASSETS:
Beginning of year 163,237,137 111,758,230 125,774,637
====================================================================================================================================
End of year $ 151,047,932 $ 96,901,356 $ 120,058,182
====================================================================================================================================
Accumulated undistributed (distributions in excess of) net investment income $ (592,264) $ (144,813) $ (447,007)
====================================================================================================================================
INCREASE(DECREASE) IN NET ASSETS
Operations: Hawaii Washington Minnesota
Net investment income $ 3,430,655 $ 2,620,917 $ 967,640
Net realized loss from investment transactions (1,194,257) (2,226,587) (843,184)
Net change in unrealized appreciation/depreciation on investments 1,004,913 1,731,685 886,133
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 3,241,311 2,126,015 1,010,589
====================================================================================================================================
Distributions to shareholders from:
Net investment income
Class A (3,436,297) (2,451,566) (1,082,552)
Class B - - -
Class C - - -
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders (3,436,297) (2,451,566) (1,082,552)
====================================================================================================================================
Capital share transactions:
Net proceeds from sales of shares 8,223,067 3,511,950 4,377,908
Reinvestment of distributions 1,336,208 1,506,371 774,908
Cost of shares reacquired (10,793,485) (12,029,669) (4,059,843)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital share transactions (1,234,210) (7,011,348) 1,092,973
====================================================================================================================================
Net increase (decrease) in net assets (1,429,196) (7,336,899) 1,021,010
====================================================================================================================================
NET ASSETS:
Beginning of year 71,619,347 51,848,658 19,843,279
====================================================================================================================================
End of year $ 70,190,151 $ 44,511,759 $ 20,864,289
====================================================================================================================================
Accumulated undistributed (distributions in excess of) net investment income $ 108,212 $ 473,144 $ (66,118)
====================================================================================================================================
INCREASE(DECREASE) IN NET ASSETS
Operations: S California
Net investment income $ 10,569,780
Net realized loss from investment transactions (3,562,708)
Net change in unrealized appreciation/depreciation on investments 5,366,845
-----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 12,373,917
===============================================================================================
Distributions to shareholders from:
Net investment income
Class A (9,767,172)
Class B -
Class C (504,343)
-----------------------------------------------------------------------------------------------
Total distributions to shareholders (10,271,515)
===============================================================================================
Capital share transactions:
Net proceeds from sales of shares 10,633,219
Reinvestment of distributions 4,735,973
Cost of shares reacquired (40,664,314)
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital share transactions (25,295,122)
===============================================================================================
Net increase (decrease) in net assets (23,192,720)
===============================================================================================
NET ASSETS:
Beginning of year 219,880,161
===============================================================================================
End of year $ 196,687,441
===============================================================================================
Accumulated undistributed (distributions in excess of) net investment income $ 148,361
===============================================================================================
</TABLE>
40 See Notes to Financial Statements 41
<PAGE>
Statements of Changes in Net Assets
Year Ended September 30, 1999
<TABLE>
<CAPTION>
INCREASE(DECREASE) IN NET ASSETS National New York Texas
Operations:
<S> <C> <C> <C>
Net investment income $ 32,381,444 $ 14,517,491 $ 4,618,764
Net realized gain (loss) from investment transactions (6,453,149) (247,046) (2,194,752)
Net change in unrealized appreciation/depreciation on investments (50,382,900) (23,097,350) (6,921,083)
------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (24,454,605) (8,826,905) (4,497,071)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (28,839,888) (13,857,824) (4,626,876)
Class B (591,671) - -
Class C (1,765,949) (308,456) -
Net realized gain from investment transactions
Class A (9,645,280) - (962,026)
Class B (182,252) - -
Class C (691,001) - -
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders (41,716,041) (14,166,280) (5,588,902)
------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sales of shares 59,929,700 11,967,741 8,191,331
Reinvestment of distributions 27,589,196 8,196,054 3,727,256
Cost of shares reacquired (82,595,438) (32,394,646) (9,949,181)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital share transactions 4,923,458 (12,230,851) 1,969,406
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (61,247,188) (35,224,036) (8,116,567)
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 658,310,171 290,256,742 92,607,270
------------------------------------------------------------------------------------------------------------------------------------
End of year $ 597,062,983 $ 255,032,706 $ 84,490,703
------------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of) net investment income $ 904,900 $ (547,068) $ (245,011)
------------------------------------------------------------------------------------------------------------------------------------
INCREASE(DECREASE) IN NET ASSETS New Jersey Connecticut Missouri
Operations:
Net investment income $ 9,173,658 $ 6,089,046 $ 6,610,014
Net realized gain (loss) from investment transactions (1,091,791) (78,227) 1,347,189
Net change in unrealized appreciation/depreciation on investments (14,686,316) (9,571,217) (11,024,090)
-----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (6,604,449) (3,560,398) (3,066,887)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (9,017,246) (6,007,093) (6,637,087)
Class B - - -
Class C - - -
Net realized gain from investment transactions
Class A (3,695,316) - -
Class B - - -
Class C - - -
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders (12,712,562) (6,007,093) (6,637,087)
-----------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sales of shares 12,758,881 13,939,413 11,685,863
Reinvestment of distributions 7,542,942 2,689,871 4,683,324
Cost of shares reacquired (23,874,345) (16,286,208) (25,045,944)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital share transactions (3,572,522) 343,076 (8,676,757)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (22,889,533) (9,224,415) (18,380,731)
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 186,126,670 120,982,645 144,155,368
-----------------------------------------------------------------------------------------------------------------------------------
End of year $ 163,237,137 $ 111,758,230 $ 125,774,637
-----------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of) net investment income $ (231,617) $ (9,671) $ (446,551)
-----------------------------------------------------------------------------------------------------------------------------------
INCREASE(DECREASE) IN NET ASSETS Hawaii Washington Minnesota
Operations:
Net investment income $ 3,835,503 $ 3,205,394 $ 942,107
Net realized gain (loss) from investment transactions (486,199) 109,993 12,207
Net change in unrealized appreciation/depreciation on investments (5,845,381) (5,739,926) (1,551,262)
------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (2,496,077) (2,424,539) (596,948)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (3,617,258) (2,874,908) (913,056)
Class B - - -
Class C - - -
Net realized gain from investment transactions
Class A - - -
Class B - - -
Class C - - -
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders (3,617,258) (2,874,908) (913,056)
------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sales of shares 4,060,791 2,052,719 8,299,061
Reinvestment of distributions 1,536,085 1,877,380 647,287
Cost of shares reacquired (8,834,623) (9,535,733) (1,992,279)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital share transactions (3,237,747) (5,605,634) 6,954,069
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (9,351,082) (10,905,081) 5,444,065
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 80,970,429 62,753,739 14,399,214
------------------------------------------------------------------------------------------------------------------------------------
End of year $ 71,619,347 $ 51,848,658 $ 19,843,279
------------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of) net investment income $ 113,854 $ 303,793 $ 30,745
------------------------------------------------------------------------------------------------------------------------------------
INCREASE(DECREASE) IN NET ASSETS California
Operations:
Net investment income $ 12,181,601
Net realized gain (loss) from investment transactions 286,600
Net change in unrealized appreciation/depreciation on investments (22,493,114)
-----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (10,024,913)
-----------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (11,801,694)
Class B -
Class C -
Net realized gain from investment transactions
Class A -
Class B -
Class C -
-----------------------------------------------------------------------------------------------
Total distributions to shareholders (11,801,694)
-----------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sales of shares 15,242,324
Reinvestment of distributions 5,540,482
Cost of shares reacquired (43,480,555)
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital share transactions (22,697,749)
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (44,524,356)
-----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 264,404,517
-----------------------------------------------------------------------------------------------
End of year $ 219,880,161
-----------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of) net investment income $ (149,904)
-----------------------------------------------------------------------------------------------
</TABLE>
42 See Notes to Financial Statements 43
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the Period November 1, 1999 to September 30, 2000*
-----------------------------------------------------------------------------------------------------------------------------------
INCREAAE(DECREASE) IN NET ASSETS Florida Pennsylvania Michigan Georgia
Operations:
<S> <C> <C> <C> <C>
Net investment income $ 5,047,153 $ 4,121,361 $ 2,021,207 $ 1,198,368
Net realized gain (loss) from investment transactions (1,465,409) (2,302,921) (705,991) (646,050
Net change in unrealized appreciation/depreciation on investments 2,204,249 4,229,523 1,975,239 1,693,665
===================================================================================================================================
Net increase (decrease) in net assets resulting from operations 5,785,993 6,047,963 3,290,455 2,245,983
===================================================================================================================================
Distributions to shareholders from:
Net investment income
Class A (4,425,826) (4,321,196) (2,226,493) (1,348,311
Class C (210,303) - - -
Net realized gain from investment transactions
Class A - - - -
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders (4,636,129) (4,321,196) (2,226,493) (1,348,311
===================================================================================================================================
Capital share transactions:
Net proceeds from sales of shares 11,425,801 8,506,212 2,035,580 4,867,543
Reinvestment of distributions 1,636,007 1,961,465 1,377,398 1,111,569
Cost of shares reacquired (21,657,944) (14,279,496) (8,167,207) (5,063,877
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions (8,596,136) (3,811,819) (4,754,229) 915,235
===================================================================================================================================
Net increase (decrease) in net assets (7,446,272) (2,085,052) (3,690,267) 1,812,907
===================================================================================================================================
NET ASSETS:
Beginning of period 106,969,716 93,834,666 49,356,065 27,431,830
-----------------------------------------------------------------------------------------------------------------------------------
End of period $ 99,523,444 $ 91,749,614 $ 45,665,798 $ 29,244,737
===================================================================================================================================
Accumulated undistributed (distributions in excess of)
net investment income $ 18,382 $ (343,442) $ (106,780) $ (97,434
===================================================================================================================================
Year Ended October 31, 1999
------------------------------------------------------------------------------------------------------------------------------------
INCREAAE(DECREASE) IN NET ASSETS Florida Pennsylvania Michigan Georgia
Operations:
Net investment income $ 6,055,123 $ 5,064,698 $ 2,769,291 $ 1,376,920
Net realized gain (loss) from investment transactions (3,917,644) (383,441) (1,385,665) (363,336)
Net change in unrealized appreciation/depreciation on investments (8,183,315) (8,873,598) (3,271,625) (2,283,607)
====================================================================================================================================
Net increase (decrease) in net assets resulting from operations (6,045,836) (4,192,341) (1,887,999) (1,270,023)
====================================================================================================================================
Distributions to shareholders from:
Net investment income
Class A (5,861,053) (5,110,986) (2,666,930) (1,303,721)
Class C (282,492) - - -
Net realized gain from investment transactions
Class A - - - (156,238)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders 6,143,545 (5,110,986) (2,666,930) (1,459,959)
====================================================================================================================================
Capital share transactions:
Net proceeds from sales of shares 11,496,856 9,216,617 6,967,293 14,058,781
Reinvestment of distributions 2,648,817 2,334,947 1,584,103 1,157,234
Cost of shares reacquired (29,553,307) (11,320,135) (7,778,927) (4,818,661)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions (15,407,634) 231,429 772,469 10,397,354
====================================================================================================================================
Net increase (decrease) in net assets (27,597,015) (9,071,898) (3,782,460) 7,667,372
====================================================================================================================================
NET ASSETS:
Beginning of period 134,566,731 102,906,564 53,138,525 19,764,458
------------------------------------------------------------------------------------------------------------------------------------
End of period $ 106,969,716 $ 93,834,666 $ 49,356,065 $ 27,431,830
====================================================================================================================================
Accumulated undistributed (distributions in excess of)
net investment income $ (529,045) $ (175,891) $ 97,911 $ 52,509)
====================================================================================================================================
Year Ended October 31, 1998
------------------------------------------------------------------------------------------------------------------------------------
INCREAAE(DECREASE) IN NET ASSETS Florida Pennsylvania Michigan Georgia
Operations:
Net investment income $ 6,590,565 $ 5,009,861 $ 2,657,453 $ 854,695
Net realized gain (loss) from investment transactions 2,832,040 376,860 47,231 169,461
Net change in unrealized appreciation/depreciation on investments 342,625 2,421,388 1,185,432 401,895
===================================================================================================================================
Net increase (decrease) in net assets resulting from operations 9,765,230 7,808,109 3,890,116 1,426,051
===================================================================================================================================
Distributions to shareholders from:
Net investment income
Class A (6,344,675) (5,096,457) (2,665,343) (838,393)
Class C (296,112) - - -
Net realized gain from investment transactions
Class A - - - (204,622)
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders (6,640,787) (5,096,457) (2,665,343) (1,043,015)
===================================================================================================================================
Capital share transactions:
Net proceeds from sales of shares 8,004,729 18,457,191 5,381,047 6,912,841
Reinvestment of distributions 2,709,366 2,310,650 1,455,413 666,699
Cost of shares reacquired (24,019,865) (14,810,076) (7,552,518) (2,095,385)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions (13,305,770) 5,957,765 (716,058) 5,484,155
===================================================================================================================================
Net increase (decrease) in net assets (10,181,327) 8,669,417 508,715 5,867,191
===================================================================================================================================
NET ASSETS:
Beginning of period 144,748,058 94,237,147 52,629,810 13,897,267
-----------------------------------------------------------------------------------------------------------------------------------
End of period $ 134,566,731 $ 102,906,564 $ 53,138,525 $ 19,764,458
===================================================================================================================================
Accumulated undistributed (distributions in excess of)
net investment income $ (454,247) $ (129,603) $ (4,450) $ (20,690)
===================================================================================================================================
</TABLE>
*The Trust changed its fiscal year-end.
44 See Notes to Financial Statements 45
<PAGE>
Financial Highlights
NATIONAL TAX-FREE INCOME FUND
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class A Shares)
Net asset value, beginning of year $ 10.79 $ 11.98 $ 11.48 $ 11.08 $ 11.00
========= ========= ======== ======== ==========
Investment operations
Net investment income .51(a) .59 .60 .59 .60
Net realized and unrealized gain (loss) on investments .01 (1.03) .47 .41 .08
--------- --------- -------- -------- ----------
Total from investment operations .52 (.44) 1.07 1.00 .68
--------- --------- -------- -------- ----------
Distributions to shareholders from:
Net investment income (.55) (.56) (.57) (.60) (.60)
Net realized gain -- (.19) -- -- --
--------- --------- -------- -------- ----------
Total distributions (.55) (.75) (.57) (.60) (.60)
--------- --------- -------- -------- ----------
Net asset value, end of year $ 10.76 $ 10.79 $ 11.98 $ 11.48 $ 11.08
========= ========= ======== ======== ==========
Total Return(b) 5.02% (3.85)% 9.60% 9.30% 6.31%
Ratios to Average Net Assets
Expenses, including waiver .98%(e) .95% .88% .87% .90%
Expenses, excluding waiver .99% .95% .88% .87% .90%
Net investment income 4.85% 5.10% 5.18% 5.27% 5.63%
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30, 8/1/96(d)
------------------------------------------------ to
2000 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class B Shares)
Net asset value, beginning of period $ 10.82 $ 11.98 $ 11.50 $ 11.08 $ 11.05
========= ========= ======== ======== =========
Investment operations
Net investment income .44(a) .51 .52 .56 .09
Net realized and unrealized gain (loss) on investments .01 (.99) .46 .41 .03
--------- --------- -------- -------- ---------
Total from investment operations . .45 (.48) .98 .97 .12
--------- --------- -------- -------- ---------
Distributions to shareholders from:
Net investment income (.48) (.49) (.50) (.55) (.09)
Net realized gain -- (.19) -- -- --
--------- --------- -------- -------- ---------
Total distributions (.48) (.68) (.50) (.55) (.09)
--------- --------- -------- -------- ---------
Net asset value, end of period $ 10.79 $ 10.82 $ 11.98 $ 11.50 $ 11.08
========= ========= ======== ======== =========
Total Return(b) 4.32% (4.30)% 8.85% 8.95% 1.16%(c)
Ratios to Average Net Assets
Expenses, including waiver 1.63%(e) 1.54% 1.47% 1.37% .20%(c)
Expenses, excluding waiver 1.63% 1.54% 1.47% 1.37% .20%(c)
Net investment income 4.15% 4.41% 4.49% 4.65% .68%(c)
====================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes
the reinvestment of all distributions.
(c) Not annualized.
(d) Commencement of offering class shares.
(e) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
46
<PAGE>
Financial Highlights (continued)
NATIONAL TAX-FREE INCOME FUND
<TABLE>
<CAPTION>
Year Ended 9/30, 7/15/96(d)
------------------------------------------------ to
2000 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class C Shares)
Net asset value, beginning of period $ 10.81 $ 11.99 $ 11.49 $ 11.08 $ 10.90
======== ======== ========= ======== =========
Investment operations
Net investment income .45(a) .50 .52 .51 .11
Net realized and unrealized gain (loss) on investments (.01) (1.01) .47 .42 .19
-------- -------- --------- -------- ---------
Total from investment operations .44 (.51) .99 .93 .30
-------- -------- --------- -------- ---------
Distributions to shareholders from:
Net investment income (.48) .48) (.49) (.52) (.12)
Net realized gain -- (.19) -- -- --
-------- -------- --------- -------- ---------
Total distributions (.48) (.67) (.49) (.52) (.12)
-------- -------- --------- -------- ---------
Net asset value, end of period $ 10.77 $ 10.81 $ 11.99 $ 11.49 $ 11.08
======== ======== ========= ======== =========
Total Return(b) 4.23% (4.45)% 8.80% 8.61% 2.71%(c)
Ratios to Average Net Assets
Expenses, including waiver 1.63%(e) 1.63% 1.61% 1.59% .34%(c)
Expense, excluding waiver 1.64% 1.63% 1.61% 1.59% .34%(c)
Net investment income 4.19% 4.38% 4.44% 4.54% .96%(c)
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
Supplemental Data for All Classes: 2000 1999 1998 1997 1996
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net assets, end of year (000) $ 539,781 $597,063 $658,310 $646,736% $672,344
Portfolio turnover rate 185.25% 254.13% 304.15% 232.64% 205.35%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
(d) Commencement of offering class shares.
(e) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
47
<PAGE>
Financial Highlights
New York tax-free income fund
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class A Shares)
Net asset value, beginning of year $ 10.51 $ 11.42 $ 11.03 $ 10.78 $ 10.85
========= ========= ======== ======== ==========
Investment operations
Net investment income .55(a) .58 .56 .58 .60
Net realized and unrealized gain (loss)on investments .02 (.94) .41 .26 (.08)
--------- --------- -------- -------- ----------
Total from investment operations .57 (.36) .97 .84 .52
--------- --------- -------- -------- ----------
Distributions to shareholders from:
Net investment income (.55) (.56) (.57) (.59) (.59)
--------- --------- -------- -------- ----------
Net asset value, end of year $ 10.53 $ 10.51 $ 11.43 $ 11.03 $ 10.78
========= ========= ======== ======== ==========
Total Return(b) 5.65% (3.23)% 9.03% 8.01% 4.87%
Ratios to Average Net Assets
Expenses, including waiver .96%(e) .93% .85% .85% .81%
Expenses, excluding waiver .97% .93% .85% .85% .81%
Net investment income 5.28% 5.21% 5.06% 5.35% 5.54%
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30, 7/15/96(d)
------------------------------------------------ to
2000 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class C Shares)
Net asset value, beginning of period $ 10.51 $ 11.42 $ 11.02 $ 10.78 $ 10.63
======== ======== ======== ======== ==========
Investment operations
Net investment income .49(a) .50 .49 .48 .11
Net realized and unrealized gain (loss) on investments .02 (.93) .40 .27 .15
-------- -------- --------- -------- ----------
Total from investment operations .51 (.43) .89 .75 .26
-------- -------- --------- -------- ----------
Distributions to shareholders from:
Net investment income (.48) (.48) (.49) (.51) (.11)
Net asset value, end of period $ 10.54 $ 10.51 $ 11.42 $ 11.02 $ 10.78
======== ======== ======== ======== ==========
Total Return(b) 5.07% (3.93)% 8.34% 7.13% 2.48%(c)
Ratios to Average Net Assets
Expenses, including waiver 1.55%(e) 1.62% 1.57% 1.57% .34%(c)
Expenses, excluding waiver 1.56% 1.62% 1.57% 1.57% .34%(c)
Net investment income 4.72% 4.49% 4.32% 4.60% 1.04%(c)
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
Supplemental Data for All Classes: 2000 1999 1998 1997 1996
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net assets, end of year (000) $233,640 $255,033 $290,257 $300,490 $319,553
Portfolio turnover rate 76.33% 52.67% 64.63% 110.28% 64.25%
===================================================================================================================================
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions.
(c) Not annualized.
(d) Commencement of offering class shares.
(e) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
</TABLE>
48
<PAGE>
Financial Highlights
Texas tax-free income fund
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class A Shares)
Net asset value, beginning of year $ 9.55 $ 10.69 $ 10.40 $ 10.11 $ 10.05
========= ========= ======== ======== =========
Investment operations
Net investment income .51(a) .52 .51 .55 .57
Net realized and unrealized gain (loss) on investments (.13) (1.03) .40 .37 .04
--------- --------- -------- -------- ---------
Total from investment operations .38 (.51) .91 .92 .61
--------- --------- -------- -------- ---------
Distributions to shareholders from:
Net investment income (.50) (.52) (.53) (.56) (.55)
Net realized gain -- (.11) (.09) (.07) --
--------- --------- -------- -------- ---------
Total distributions (.50) (.63) (.62) (.63) (.55)
--------- --------- -------- -------- ---------
Net asset value, end of year $ 9.43 $ 9.55 $ 10.69 $ 10.40 $ 10.11
========= ========= ======== ======== =========
Total Return(b) 4.14% (4.96)% 9.24% 9.25% 6.11%
Ratios to Average Net Assets
Expenses, including waiver .99%(c) .94% .91% .88% .69%(c)
Expenses, excluding waiver 1.01% .94% .91% .88% .87%
Net investment income 5.47% 5.12% 4.85% 5.38% 5.58%
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
Supplemental Data for All Classes: 2000 1999 1998 1997 1996
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net assets, end of year (000) $74,405 $84,491 $92,607 $91,301 $94,414
Portfolio turnover rate 163.39% 168.04% 143.78% 127.88% 112.34%
===================================================================================================================================
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
Financial Highlights
New Jersey tax-free income fund
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class A Shares)
Net asset value, beginning of year $ 4.97 $ 5.54 $ 5.34 $5.18 $ 5.14
========= ========= ======== ======== =========
Investment operations
Net investment income .25(a) .27 .26 .27 .28
Net realized and unrealized gain (loss) on investments --(b) (.47) .22 .15 .04
--------- --------- -------- -------- ---------
Total from investment operations .25 (.20) .48 .42 .32
--------- --------- -------- -------- ---------
Distributions to shareholders from:
Net investment income (.26) (.26) (.26) (.28) (.28)
Net realized gain -- (.11) -- -- --
--------- --------- -------- -------- ---------
Total distributions (.26) (.37) (.26) (.28) (.28)
--------- --------- -------- -------- ---------
Net asset value, end of year $ 4.96 $ 4.97 $ 5.54 $ 5.32 $ 5.18
========= ========= ======== ======== =========
Total Return(c) 5.31% (3.73)% 9.34% 8.25% 6.29%
Ratios to Average Net Assets
Expenses, including waiver .97%(d) .93% .86% .82%(d) .79%(d)
Expenses, excluding waiver .98% .93% .86% .86% .86%
Net investment income 5.03% 5.11% 4.85% 5.21% 5.31%
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
Supplemental Data for All Classes: 2000 1999 1998 1997 1996
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net assets, end of year (000) $151,048 $163,237 $186,127 $184,465 $186,402
Portfolio turnover rate 125.73% 185.16% 118.38% 154.80% 171.63%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Amount is less than $0.01.
(c) Total return does not consider the effects of sales loads and assumes
the reinvestment of all distributions.
(d) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
49
<PAGE>
Financial Highlights
Connecticut tax-free income fund
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class A Shares)
Net asset value, beginning of year $ 9.89 $ 10.73 $ 10.42 $ 10.13 $ 10.12
========= ========= ======== ======== =========
Investment operations
Net investment income .49(a) .54 .52 .55 .57
Net realized and unrealized gain (loss) on investments (.08) (.86) .32 .29 (.01)
--------- --------- -------- -------- ---------
Total from investment operations .41 (.32) .84 .84 .56
--------- --------- -------- -------- ---------
Distributions to shareholders from:
Net investment income (.51) (.52) (.53) (.55) (.55)
--------- --------- -------- -------- ---------
Net asset value, end of year $ 9.79 $ 9.89 $ 10.73 $ 10.42 $ 10.13
========= ========= ======== ======== =========
Total Return(b) 4.32% (3.04)% 8.32% 8.56% 5.70%
Ratios to Average Net Assets
Expenses, including waiver 1.02%(c) .95% .81% .59%(c) .38%(c)
Expenses, excluding waiver 1.02% .95% .81% .78% .80%
Net investment income 5.10% 5.12% 4.95% 5.45% 5.66%
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
Supplemental Data for All Classes: 2000 1999 1998 1997 1996
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net assets, end of year (000) $96,901 $111,758 $120,983 $119,909 $122,885
Portfolio turnover rate 37.92% 53.76% 61.06% 37.09% 63.61%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes
the reinvestment of all distributions.
(c) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
50
<PAGE>
Financial Highlights
MISSOURI tax-free income fund
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class A Shares)
Net asset value, beginning of year $ 4.99 $ 5.36 $ 5.22 $ 5.08 $ 5.08
========= ========= ======== ======== =========
Investment operations
Net investment income .24(a) .25 .25 .27 .27
Net realized and unrealized gain (loss) on investments (.02) (.37) .14 .14 .01
--------- --------- -------- -------- ---------
Total from investment operations .22 (.12) .39 .41 .28
--------- --------- -------- -------- ---------
Distributions to shareholders from:
Net investment income (.25) (.25) (.25) (.27) (.28)
--------- --------- -------- -------- ---------
Net asset value, end of year $ 4.96 $ 4.99 $ 5.36 $ 5.22 $ 5.08
========= ========= ======== ======== =========
Total Return(b) 4.63% (2.25)% 7.75% 8.22% 5.54%
Ratios to Average Net Assets
Expenses, including waiver 1.02%(c) .99% .92%(c) .70%(c) .77%(c)
Expenses, excluding waiver 1.02% .99% .93% .94% .92%
Net investment income 4.98% 4.84% 4.80% 5.22% 5.21%
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
Supplemental Data for All Classes: 2000 1999 1998 1997 1996
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net assets, end of year (000) $120,058 $125,775 $144,155 $140,280 $134,144
Portfolio turnover rate 43.30% 78.85% 72.89% 27.34% 93.17%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes
the reinvestment of all distributions.
(c) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
Financial Highlights
HAWAII tax-free income fund
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class A Shares)
Net asset value, beginning of year $ 4.84 $ 5.25 $ 5.07 $ 4.93 $ 4.91
======== ======== ======== ======== =========
Investment operations
Net investment income .24(a) .26 .25 .26 .27
Net realized and unrealized gain (loss) on investments (.01) (.43) .18 .14 .02
-------- -------- -------- -------- ---------
Total from investment operations .23 (.17) .43 .40 .29
-------- -------- -------- -------- ---------
Distributions to shareholders from:
Net investment income (.24) (.24) (.25) (.26) (.27)
-------- -------- -------- -------- ---------
Net asset value, end of year $ 4.83 $ 4.84 $ 5.25 $ 5.07 $ 4.93
======== ======== ======== ======== =========
Total Return(b) 4.94% (3.31)% 8.59% 8.42% 5.94%
Ratios to Average Net Assets
Expenses, including waiver .99%(c) .97% .92%(c) .58%(c) .57%(c)
Expenses, excluding waiver .99% .97% .93% .87% .87%
Net investment income 5.03% 5.03% 4.78% 5.39% 5.46%
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
Supplemental Data for All Classes: 2000 1999 1998 1997 1996
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net assets, end of year (000) $70,190 $71,619 $80,970 $79,079 $85,344
Portfolio turnover rate 30.06% 27.63% 52.65% 29.09% 59.46%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
51
<PAGE>
Financial Highlights
Washington tax-free income fund
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class A Shares)
Net asset value, beginning of year $ 4.91 $ 5.38 $ 5.16 $ 4.96 $ 4.91
======== ======== ======== ======== ========
Investment operations
Net investment income .27(a) .28 .27 .27 .27
Net realized and unrealized gain (loss) on investments (.04) (.50) .21 .20 .06
-------- -------- -------- -------- --------
Total from investment operations .23 (.22) .48 .47 .33
-------- -------- -------- -------- --------
Distributions to shareholders from:
Net investment income (.25) (.25) (.26) (.27) (.28)
-------- -------- -------- -------- --------
Net asset value, end of year $ 4.89 $ 4.91 $ 5.38 $ 5.16 $ 4.96
======== ======== ======== ======== ========
Total Return(b) 4.90% (4.17)% 9.48% 9.82% 6.80%
Ratios to Average Net Assets
Expenses, including waiver .71%(c) .66% .65% .57%(c) .60%(c)
Expenses, excluding waiver .71% .66% .65% .62% .68%
Net investment income 5.58% 5.42% 5.20% 5.36% 5.47%
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
Supplemental Data for All Classes: 2000 1999 1998 1997 1996
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net assets, end of year (000) $44,512 $51,849 $62,754 $66,215 $71,295
Portfolio turnover rate 152.63% 180.42% 141.56% 132.37% 78.02%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
Financial Highlights
Minnesota tax-free income fund
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class A Shares)
Net asset value, beginning of year $ 4.78 $ 5.18 $ 5.05 $ 4.90 $ 5.01
======== ======== ========= ======== ========
Investment operations
Net investment income .23(a) .27 .27 .27 .30
Net realized and unrealized gain (loss) on investments .01 (.41) .13 .16 (.08)
-------- -------- --------- -------- --------
Total from investment operations .24 (.14) .40 .43 .22
-------- -------- --------- -------- --------
Distributions to shareholders from:
Net investment income (.26) (.26) (.27) (.28) (.29)
Net realized gain -- -- -- -- (.04)
-------- -------- --------- -------- --------
Total distributions (.26) (.26) (.27) (.28) (.33)
-------- -------- --------- -------- --------
Net asset value, end of year $ 4.76 $ 4.78 $ 5.18 $ 5.05 $ 4.90
======== ======== ========= ======== ========
Total Return(b) 5.32% (2.72)% 8.11% 8.97% 4.44%
Ratios to Average Net Assets
Expenses, including waiver .24%(c) .23%(c) .27%(c) .36%(c) .00%(c)
Expenses, excluding waiver .74% .73% .77% .86% .91%
Net investment income 5.00% 5.43% 5.19% 5.51% 5.91%
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30,
-------------------------------------------------------------
Supplemental Data for All Classes: 2000 1999 1998 1997 1996
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net assets, end of year (000) $20,864 $19,843 $14,399 $10,510 $8,047
Portfolio turnover rate 50.37% 22.87% 40.65% 41.45% 43.08%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
52
<PAGE>
Financial Highlights
CALIFORNIA TAX-FREE INCOME FUND
<TABLE>
<CAPTION>
Year Ended 9/30, One Month Year
------------------------------------------------Ended 9/30 Ended 8/31
2000 1999 1998 1997 1996 1996
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class C Shares)
Net asset value, beginning of period $ 10.16 $ 11.12 $ 10.72 $ 10.43 $ 10.32 $ 10.41
======== ======= ======= ======== ======= =======
Net investment income .53(a) .54 .54 .56 .05 .57
Net realized and unrealized gain (loss) on investments .12 (.98) .39 .29 .11 (.09)
-------- ------- ------- -------- ------- -------
Total from investment operations .65 (.44) .93 .85 .16 .48
-------- ------- ------- -------- ------- -------
Net investment income (.52) (.52) (.53) (.56) (.05) (.57)
-------- ------- ------- -------- ------- -------
Net asset value, end of period $ 10.29 $ 10.16 $ 11.12 $ 10.72 $ 10.43 $ 10.32
======== ======= ======= ======== ======= =======
Total Return(b) 6.62% (4.09)% 8.86% 8.39% 1.53%(c) 4.65%
Expenses, including waiver .94%(e ) .93% .87% .72% .07%(c) .75%
Expenses, excluding waiver .94% .93% .87% .85% .07%(c) .86%
Net investment income 5.30% 4.96% 4.98% 5.38% .44%(c) 5.41%
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30, One Month Year
-----------------------------------------------Ended 9/30 7/15/1996(d)
2000 1999 1998 1997 1996 1996
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class C Shares)
Net asset value, beginning of period $ 10.16 $ 11.12 $ 10.72 $ 10.43 $ 10.32 $ 10.28
========= ========= ========= ========= ========= =========
Investment operations
Net Investment income .47(a) .46 .47 .48 .04 .07
Net realized and unrealized gain (loss) on investments .12 (.98) .38 .29 .11 .04
--------- --------- --------- --------- --------- ---------
Total from investment operations .59 (.52) .85 .77 .15 .11
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from:
Net investment income (.45) (.44) (.45) (.48) (.04) (.07)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 10.30 $ 10.16 $ 11.12 $ 10.72 $ 10.43 $ 10.32
========= ========= ========= ========= ========= =========
Total Return(b) 6.02% (4.77)% 8.09% 7.59% 1.47%(c) 1.16%(c)
Ratios to Average Net Assets
Expenses, including waiver 1.55%(e) 1.60% 1.59% 1.46% .13%(c) .17%(c)
Expenses, excluding waiver 1.55% 1.60% 1.59% 1.59% .13%(c) .21%(c)
Net investment income 4.70% 4.28% 4.26% 4.64% .38%(c) .65%(c)
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30, One Month Year
-----------------------------------------------Ended 9/30 7/15/1996(d)
Supplemental Data for All Classes: 2000 1999 1998 1997 1996 1996
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000) $196,687 $219,880 $264,405 $273,009 $294,837 $291,611
Portfolio turnover rate 100.22% 185.43% 187.26% 121.97% 2.74% 132.37%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
(d) Commencement of offering class shares.
(e) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
53
<PAGE>
Financial Highlights
FLORIDA SERIES
<TABLE>
<CAPTION>
11/1/99 Year Ended 10/31,
to -------------------------------------------------------------
9/30/00* 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class C Shares)
Net asset value, beginning of period $ 4.52 $ 4.98 $ 4.87 $ 4.79 $ 4.85 $ 4.49
======= ======= ======= ======= ======= =======
Investment operations
Net investment income .23(a) .23(a) .24 .24 .25 .27
Net realized and unrealized gain (loss) on investment .03 (.46) .11 .09 (.06) .35
------- ------- ------- ------- ------- -------
Total from investment operations .26 (.23) .35 .33 .19 .62
------- ------- ------- ------- ------- -------
Distributions to shareholders from:
Net investment income (.21) (.23) (.24) (.25) (.25) (.26)
------- ------- ------- ------- ------- -------
Net asset value, end of period 4.57 $ 4.52 $ 4.98 $ 4.87 $ 4.79 $ 4.85
======= ======= ======= ======= ======= =======
Total Return(b) 5.86%(c) (4.74)% 7.30% 7.12% 4.09% 14.22%
Ratios to Average Net Assets
Expenses, including waiver .89%(c)(e) .97%(e) .89% .86% .80%(e) .74%(e)
Expenses, excluding waiver .89%(c) .97% .89% .86% .82% .88%
Net investment income 5.00%(c) 4.73% 4.79% 5.03% 5.19% 5.81%
</TABLE>
<TABLE>
<CAPTION>
11/1/99 Year Ended 10/31, 7/15/96(d)
to ---------------------------------------- to
9/30/00* 1999 1998 1997 10/31/96
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class C Shares)
Net asset value, beginning of period $ 4.52 $ 4.98 $ 4.87 $ 4.79 $ 4.70
========= ========= ========= ========= =========
Investment operations
Net investment income .20(a) .20(a) .20 .20 .07
Net realized and unrealized gain (loss) on investments .04 (.46) .11 .10 .09
--------- --------- --------- --------- ---------
Total from investment operations .24 (.26) .31 .30 .16
--------- --------- --------- --------- ---------
Distributions to shareholders from:
Net investment income (.18) (.20) (.20) (.22) (.07)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 4.58 $ 4.52 $ 4.98 $ 4.87 $ 4.79
========= ========= ========= ========= =========
Total Return(b) 5.44%(c) (5.43)% 6.52% 6.33% 3.35%(c)
Ratios to Average Net Assets
Expenses, including waiver 1.42%(c)(e) 1.62%(e) 1.58% 1.57% .44%(c)
Expenses, excluding waiver 1.43%(c) 1.62% 1.58% 1.57% .44%(c)
Net investment income 4.52%(c) 4.07% 4.09% 4.29% 1.37%(c)
</TABLE>
<TABLE>
<CAPTION>
11/1/99 Year Ended 10/31,
to -----------------------------------------------------------------
Supplemental Data for All Classes: 9/30/00* 1999 1998 1997 1996 1995
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000) $99,523 $106,970 $134,567 $144,748 $162,070 $173,242
Portfolio turnover rate 169.02%(c) 191.12% 140.61% 106.32% 167.95% 142.04%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
(d) Commencement of offering class shares.
(e) The ratio includes expenses paid through an expense offset arrangement.
*The Trust changed its fiscal year-end.
See Notes to Financial Statements.
54
<PAGE>
Financial Highlights
Pennsylvania SERIES
<TABLE>
<CAPTION>
11/1/99 Year Ended 10/31,
to -----------------------------------------------------------
9/30/00* 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class C Shares)
Net asset value, beginning of period $ 4.81 $ 5.28 $ 5.14 $ 5.01 $ 5.01 $ 4.62
====== ======= ====== ======= ======= =======
Net investment income .22(a) .26(a) .27 .28 .28 .28
Net realized and unrealized gain (loss) on investments .10 (.47) .14 .13 --(e) .40
------ ------- ------ ------- ------- -------
Total from investment operations .32 (.21) .41 .41 .28 .68
------ ------- ------ ------- ------- -------
Net investment income (.23) (.26) (.27) (.28) (.28) (.29)
------ ------- ------ ------- ------- -------
Net asset value, end of period 4.90 $ 4.81 $ 5.28 $ 5.14 $ 5.01 $ 5.01
====== ======= ====== ======= ======= =======
Total Return(b) 6.83%(c) (4.13)% 8.12% 8.37% 5.68% 15.02%
Ratios to Average Net Assets
Expenses, including waiver .88%(c)(d) .96%(d) .72% .61%(d) .62%(d) .50%(d)
Expenses, excluding waiver .88%(c) .96% .72% .65% .69% .65%
Net investment income 4.54%(c) 5.02% 5.05% 5.47% 5.55% 5.83%
</TABLE>
<TABLE>
<CAPTION>
11/1/99 Year Ended 10/31,
to ------------------------------------------------------------
Supplemental Data for All Classes: 9/30/00* 1999 1998 1997 1996 1995
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000) $91,750 $93,835 $102,907 $94,237 $92,605 $93,494
Portfolio turnover rate 61.00% 40.76% 65.20% 70.99% 78.30% 126.11%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
(d) The ratio includes expenses paid through an expense offset arrangement.
(e) Amount represents less than $0.01.
*The Trust changed its fiscal year-end.
See Notes to Financial Statements.
Financial Highlights
Michigan SERIES
<TABLE>
<CAPTION>
11/1/99 Year Ended 10/31,
to -----------------------------------------------------------
9/30/00* 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class C Shares)
Net asset value, beginning of period $4.75 $ 5.18 $ 5.06 $ 4.93 $ 4.93 $ 4.53
===== ====== ====== ====== ====== =======
Investment operations
Net investment income .21(a) .26(a) .26 .27 .27 .28
Net realized and unrealized gain (loss) on investments .14 (.44) .12 .13 (.01) .40
----- ------ ------ ------ ------ -------
Total from investment operations .35 (.18) .38 .40 .26 .68
----- ------ ------ ------ ------ -------
Distributions to shareholders from:
Net investment income (.23) (.25) (.26) (.27) (.26) (.28)
----- ------ ------ ------ ------ -------
Net asset value, end of period $4.87 $ 4.75 $ 5.18 $ 5.06 $ 4.93 $ 4.93
===== ====== ====== ====== ====== =======
Total Return(b) 7.57%(c) (3.55)% 7.59% 8.24% 5.53% 15.39%
Ratios to Average Net Assets
Expenses, including waiver .67%(c)(d) .69%(d) .69% .60%(d) .44%(d) .25%(d)
Expenses, excluding waiver .67%(c) .69% .69% .68% .73% .75%
Net investment income 4.37%(c) 5.21% 4.98% 5.37% 5.59% 5.95%
</TABLE>
<TABLE>
<CAPTION>
11/1/99 Year Ended 10/31,
to -----------------------------------------------------------------
Supplemental Data for All Classes: 9/30/00* 1999 1998 1997 1996 1995
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000) $45,666 $49,356 $53,139 $52,630 $52,975 $54,186
Portfolio turnover rate 111.48% 186.97% 82.33% 68.50% 85.26% 98.89%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
(d) The ratio includes expenses paid through an expense offset arrangement.
*The Trust changed its fiscal year-end.
See Notes to Financial Statements.
55
<PAGE>
Financial Highlights
Georgia SERIES
<TABLE>
<CAPTION>
11/1/99 Year Ended 10/31,
to ------------------------------------------------------------
9/30/00* 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance (Class C Shares)
Net asset value, beginning of period $ 4.91 $ 5.43 $ 5.31 $ 5.14 $ 5.12 $ 4.76
====== ====== ======= ====== ====== =======
Investment operations
Net investment income .21(a) .28 .27 .27 .29 .25
Net realized and unrealized gain (loss) on investments .19 (.50) .19 .19 .04 .37
------ ------ ------- ------ ------ -------
Total from investment operations .40 (.22) .46 .46 .33 .62
------ ------ ------- ------ ------ -------
Distributions to shareholders from:
Net investment income (.24) (.26) (.27) (.28) (.29) (.26)
Net realized gain -- (.04) (.07) (.01) (.02) --
------ ------ ------- ------ ------ -------
Total distribution (.24) (.30) (.34) (.29) (.31) (.26)
------ ------ ------- ------ ------ -------
Net asset value, end of period $ 5.07 $ 4.91 $ 5.43 $ 5.31 $ 5.14 $ 5.12
====== ====== ======= ====== ====== =======
Total Return(b) 8.59%(c) 4.36% 9.00% 9.27% 6.69% 13.15%
Ratios to Average Net Assets
Expenses, including waiver .17%(c)(d) .18%(d) .24%(d) .38%(d) .03%(d) .00%(d)
Expenses, excluding waiver .63%(c) .68% .74% .88% .83% 1.08%
Net investment income 4.30%(c) 5.32% 5.07% 5.23% 5.55% 5.44%
</TABLE>
<TABLE>
<CAPTION>
11/1/99 Year Ended 10/31,
to -----------------------------------------------------------------
Supplemental Data for All Classes: 9/30/00* 1999 1998 1997 1996 1995
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000) $29,245 $27,432 $19,764 $13,897 $10,688 $5,203
Portfolio turnover rate 122.44% 115.87% 126.52% 90.40% 72.53% 142.69%
===================================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
(d) The ratio includes expenses paid through an expense offset arrangement.
*The Trust changed its fiscal year-end.
See Notes to Financial Statements.
<PAGE>
<PAGE>
Notes to Financial Statements
1. Organization
This report covers the financial statements of Lord Abbett Tax-Free Income Fund,
Inc. (the "Company") and Lord Abbett Tax-Free Income Trust (the "Trust"). The
Company and Trust are registered under the Investment Company Act of 1940 (the
"Act") as open-end management investment companies and consist of the following
ten and four portfolios, respectively, (separately, a "Fund" and collectively,
the "Funds"): National Tax-Free Income Fund ("National"), New York Tax-Free
Income Fund ("New York"), Texas Tax-Free Income Fund ("Texas"), New Jersey
Tax-Free Income Fund ("New Jersey"), Connecticut Tax-Free Income Fund
("Connecticut"), Missouri Tax-Free Income Fund ("Missouri"), Hawaii Tax-Free
Income Fund ("Hawaii"), Washington Tax-Free Income Fund ("Washington"),
Minnesota Tax-Free Income Fund ("Minnesota"), California Tax-Free Income Fund
("California"), Florida Series ("Florida"), Pennsylvania Series
("Pennsylvania"), Michigan Series ("Michigan") and Georgia Series ("Georgia").
Each Fund is non-diversified as defined under the Act, except for National. The
financial statements have been prepared in conformity with accounting principles
generally accepted in the United States of America, which permit management to
make certain estimates and assumptions at the date of the financial statements.
The Trust changed its fiscal year-end from October 31 to September 30, to
conform to the fiscal year-end of the Company. Accordingly, the financial
statements of the Trust cover an eleven-month period from November 1, 1999 to
September 30, 2000.
2. Significant Accounting Policies
(a) Investment Valuation-Securities are valued at prices supplied by independent
pricing services. Such prices reflect broker/dealer supplied valuations and
electronic data processing techniques. Prices reflect the mean of the bid and
asked prices. Securities for which market quotations are not readily available
are valued at fair value, as determined in accordance with procedures adopted by
the Board of Directors/Trustees. Short-term securities with 60 days or less
remaining to maturity are valued using the amortized cost method, which
approximates current market value.
(b) Security Transactions and Investment Income-Security transactions are
recorded as of the date that the securities are purchased or sold (trade date).
Realized gains and losses from sales of portfolio securities are calculated
using the identified-cost method. Interest income is recorded on the accrual
basis. For multi-class funds, net investment income and realized and unrealized
gains or losses are allocated to each class of shares, daily, based upon the
relative proportion of net assets at the beginning of the day.
(c) Federal Taxes-It is the policy of the Company and Trust to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of their taxable net investment
income and capital gains to their shareholders. Therefore, no federal income tax
provision is required.
(d) Reclassification-Certain reclassifications have been made to prior year
financial statements to conform to the current period presentation. Such
reclassifications have no impact on the previously reported net asset value.
(e) Expenses-Expenses incurred by the Company and Trust that do not specifically
relate to an individual Fund are allocated to the Funds on a pro rata basis.
Class A, Class B and Class C shares bear all expenses and fees relating to their
respective 12b-1 Plans.
3. Management Fees and Other Transactions with Affiliates
Management Fees
The Company and Trust each have a management agreement with Lord, Abbett & Co.
("Lord Abbett"), pursuant to which Lord Abbett supplies the Company and Trust
with investment management services and executive and other personnel, pays the
remuneration of officers, provides office space and pays for ordinary and
necessary office and clerical expenses relating to research and statistical work
and super vision of the Company's and Trust's investment portfolios. The
management fee is based on average daily net assets for each month at an annual
rate of 0.50%. Lord Abbett may voluntarily waive management fees or reimburse
any Fund for certain of its other expenses. For the year ended September 30,
2000 for Minnesota, and for the period ended September 30, 2000 and the year
ended October 31, 1999 for Georgia, Lord Abbett voluntarily waived its
management fees.
57
<PAGE>
Notes to Financial Statements (continued)
12b-1 Plans
Each of the Funds has adopted a distribution plan (the "Plan") with respect to
one or more classes of shares pursuant to Rule 12b-1 of the Act, which provides
for the payment of ongoing account maintenance and distribution fees to Lord
Abbett Distributor LLC ("Distributor"), an affiliate of Lord Abbett. The fees
are accrued daily at annual rates based upon average daily net assets as
follows:
Fee Class A(1) Class B Class C(4)
--------------------------------------------------------------------------------
Service .25%(2) .25% .25%
Distribution .10%(3) .75% .75%
(1) The Class A Plans of Washington, Minnesota, Michigan and Georgia will not
go into effect until the quarter subsequent to the net assets of each Fund
reaching $100 million. As of 9/30/00, the net assets of each fund have not
reached $100 million.
(2) The annual rate is 0.15% of the average daily net asset value of shares
sold prior to the effective date of the Class A Plan for National, New
York, Texas, New Jersey, Hawaii, Washington, Minnesota and Pennsylvania.
(3) In addition, the Funds pay a one-time distribution fee of up to 1% on
certain qualifying purchases.
(4) Service and distribution fees are accrued at an annual rate of up to 1%.
Commissions
Distributor received the following commissions on sales of shares of the Funds
after concessions were paid to authorized distributors:
Year Ended September 30, 2000
---------------------------------------------------
Distributor Dealers'
Commissions Concessions
---------------------------------------------------
National $33,763 $158,778
New York 14,336 66,896
Texas 8,253 37,898
New Jersey 19,841 93,061
Connecticut 16,332 75,858
Missouri 25,923 122,672
Hawaii 9,604 46,020
Washington 4,669 22,418
Minnesota 12,003 66,056
California 13,701 62,871
Florida* 5,480 25,709
Pennsylvania* 13,690 66,517
Michigan* 8,754 40,258
Georgia* 13,345 60,464
Year Ended October 31, 1999
---------------------------------------------------
Distributor Dealers'
Commissions Concessions
---------------------------------------------------
Florida $19,203 $123,182
Pennsylvania 34,170 213,869
Michigan 20,680 142,339
Georgia 40,828 269,680
* For the period 11/1/99 - 9/30/00.
58
<PAGE>
Notes to Financial Statements (continued)
4. Distributions and Capital Loss Carryforwards
Dividends from net investment income are declared daily and paid monthly.
Taxable net realized gains from securities transactions, reduced by capital loss
carryforwards, are distributed to shareholders annually. The capital loss
carryforward amount is available to offset future net capital gains.
At September 30, 2000, the capital loss carryforwards, along with the related
expiration dates, are as follows:
<TABLE>
<CAPTION>
2002 2003 2004 2005 2007 2008 Total
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
National - - - - - $15,235,896 $15,235,896
New York - $8,259,602 $1,668,796 - - 983,645 10,912,043
Texas - - - - - 3,125,112 3,125,112
New Jersey - - - - - 4,594,253 4,594,253
Connecticut - 721,307 537,856 - - 677,619 1,936,782
Missouri - 495,713 1,103,066 $31,063 - 151,236 1,781,078
Hawaii - 68,514 1,575,226 - $37,384 584,699 2,265,823
Washington - - 470,961 - - 947,474 1,418,435
Minnesota - - - - - 19,877 19,877
California $11,890,149 5,761,785 - - - 3,282,765 20,934,699
Florida 3,653,800 2,642,077 1,035,870 - 3,917,644 1,465,409 12,714,800
Pennsylvania - 455,598 - - 383,441 2,302,921 3,141,960
Michigan 818,540 371,149 - - 1,385,665 705,991 3,281,345
Georgia - - - - 363,336 640,751 1,004,087
</TABLE>
5. Portfolio Securities Transactions
Purchases and sales of investment securities (other than short-term investments)
are as follows:
Year Ended September 30, 2000
-------------------------------------------------
Purchases Sales
-------------------------------------------------
National $1,035,590,784 $1,127,778,121
New York 182,018,571 203,577,532
Texas 127,411,381 141,126,605
New Jersey 191,499,434 207,833,012
Connecticut 38,102,975 52,346,813
Missouri 51,090,300 54,386,197
Hawaii 20,252,095 21,065,070
Washington 71,833,724 80,904,103
Minnesota 10,671,431 9,411,765
California 197,989,432 219,913,503
Florida* 170,981,849 181,703,490
Pennsylvania* 54,924,418 57,842,663
Michigan* 51,460,627 59,058,671
Georgia* 36,016,079 33,545,417
Year Ended October 31, 1999
-------------------------------------------------
Purchases Sales
-------------------------------------------------
Florida $244,258,532 $254,930,480
Pennsylvania 40,580,318 41,245,867
Michigan 102,712,634 100,482,219
Georgia 37,943,069 28,791,044
* For the period 11/1/99 - 9/30/00.
59
<PAGE>
Notes to Financial Statements (continued)
As of September 30, 2000, the aggregate cost of investments, gross unrealized
appreciation, gross unrealized depreciation and net unrealized appreciation
(depreciation) of investments based on cost for federal income tax purposes were
as follows:
<TABLE>
<CAPTION>
Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation
Tax Cost Appreciation Depreciation (Depreciation)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
National $537,890,794 $12,774,332 $(9,860,640) $2,913,692
New York 225,039,376 7,472,021 (1,797,350) 5,674,671
Texas 70,337,891 2,180,728 (406,211) 1,774,517
New Jersey 147,843,741 4,960,285 (1,992,574) 2,967,711
Connecticut 96,205,990 2,480,641 (2,694,700) (214,059)
Missouri 118,182,632 2,986,787 (2,469,150) 517,637
Hawaii 68,333,754 1,896,503 (1,128,499) 768,004
Washington 43,313,175 1,241,710 (395,532) 846,178
Minnesota 20,024,980 331,800 (446,716) (114,916)
California 189,758,920 6,627,636 (2,246,669) 4,380,967
Florida 96,280,082 3,091,981 (1,370,755) 1,721,226
Pennsylvania 89,416,510 2,847,765 (1,382,341) 1,465,424
Michigan 43,588,328 1,613,632 (95,441) 1,518,191
Georgia 28,726,940 715,078 (382,150) 332,928
</TABLE>
6. Directors'/Trustees' Remuneration
The Directors/Trustees associated with Lord Abbett and all officers of the
Company and Trust receive no compensation from the Company or Trust for acting
as such. Outside Directors'/Trustees' fees and retirement costs are allocated
among all funds in the Lord Abbett group based on the net assets of each fund.
The outside Directors/Trustees may elect to defer receipt of such fees. The
deferred fees earn a return based on the performance of the Company, Trust, or
other funds within the Lord Abbett Family of Funds. The cost of such fees and
earnings accrued thereon is included in Directors'/ Trustees' expense. Deferred
fees and related accrued earnings are not deductible for Federal income tax
purposes until such amounts are paid.
7. Concentration of Risk
The ability of issuers of debt securities held by the Funds to meet their
obligations may be affected by economic and political developments in a specific
state or industry.
Each fund may invest up to 20% of its net assets in residual interest bonds
("RIBs"). RIBs, sometimes referred to as inverse floaters, are debt instruments
with a floating or variable interest rate that moves in the opposite direction
of the interest rate on another security or the value of an index. Changes in
the interest rate on the other security or index inversely affect the residual
interest paid on the RIB, with the result that when interest rates rise, RIBs
make lower interest payments and their values fall faster than fixed-rate bonds.
But when interest rates fall, not only do RIBs make higher interest payments,
their values also rise faster than fixed-rate bonds.
8. Expense Reduction
The Company and Trust have entered into agreements with their transfer agents
whereby credits realized as a result of uninvested cash balances were used to
reduce a portion of the Company's and Trust's expenses.
60
<PAGE>
Notes to Financial Statements (continued)
9. Certain Reclassifications
Net investment income distributions and capital gains distributions are
determined in accordance with income tax regulations, which may differ from
accounting principles generally accepted in the United States of America.
Permanent items identified at September 30, 2000, have been reclassified among
the components of net assets as follows:
Accumulated
Undistributed Net Realized
Net Investment Loss from
Income Investments Paid-In Capital
-------------------------------------------------------------------------------
New Jersey $186,000 $(186,000)
Connecticut 27,236 (27,236)
Missouri 183,600 (183,600)
Minnesota 18,049 $(1,034) (17,015)
Florida 136,403 (136,403)
Pennsylvania 32,284 (32,284)
Michigan 595 (595)
10. Summary of Capital Transactions
The Company has 1,000,000,000 authorized shares (par value $.001) of which
900,000,000 are issued and allocated as follows: 150,000,000 to National,
110,000,000 to each of New York, New Jersey, and California, and 70,000,000 to
each of Texas, Connecticut, Missouri, Hawaii, Washington and Minnesota. The
Trust has an unlimited number of shares of beneficial interest authorized.
Transactions in shares of capital for the single class Funds are as follows:
<TABLE>
<CAPTION>
Year Ended 9/30/2000
-------------------------------------------------------------------------------------------------
Texas New Jersey Connecticut Missouri Hawaii Washington
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 260,996 2,250,716 736,683 1,742,762 1,744,087 724,732
Reinvestment
of distributions 295,645 908,267 227,874 915,352 281,425 312,241
Shares reacquired (1,513,525) (5,511,587) (2,360,325) (3,664,444) (2,278,597) (2,495,081)
---------------------------------------------------------------------------------------------------------------------
Share increase
(decrease) (956,884) (2,352,604) (1,395,768) (1,006,330) (253,085) (1,458,108)
---------------------------------------------------------------------------------------------------------------------
Year Ended 9/30/2000
------------------------------------------------------------------------------------------------------------
Minnesota Pennsylvania* Michigan* Georgia*
------------------------------------------------------------------------------------------------------------
Shares sold 932,341 1,753,389 427,725 979,476
Reinvestment
of distributions 165,247 407,357 288,807 224,252
Shares reacquired (869,421) (2,963,573) (1,716,609) (1,020,611)
------------------------------------------------------------------------------------------------------------
Share increase
(decrease) 228,167 (802,827) (1,000,077) 183,117
------------------------------------------------------------------------------------------------------------
*For the period November 1, 1999 to September 30, 2000.
Year Ended 9/30/99
---------------------------------------------------------------------------------------------------
Texas New Jersey Connecticut Missouri Hawaii Washington Minnesota
----------------------------------------------------------------------------------------------------------------------------
Shares sold 800,026 2,390,789 1,319,866 2,223,451 796,560 389,460 1,638,218
Reinvestment
of distributions 361,537 1,410,888 256,280 894,762 300,269 358,276 127,846
Shares
reacquired (974,822) (4,548,695) (1,552,956) (4,783,618) (1,723,055) (1,843,141) (391,138)
----------------------------------------------------------------------------------------------------------------------------
Share increase
(decrease) 186,741 (747,018) 23,190 (1,665,405) (626,226) (1,095,405) 1,374,926)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31/99
--------------------------------------------------------------------------------
Pennsylvania Michigan Georgia
--------------------------------------------------------------------------------
Shares sold 1,782,011 1,369,248 2,650,359
Reinvestment
of distributions 453,990 313,540 219,532
Shares
reacquired (2,210,655) (1,554,501) (918,111)
--------------------------------------------------------------------------------
Share increase
(decrease) 25,346 128,287 1,951,780
--------------------------------------------------------------------------------
Year Ended 10/31/98
-------------------------------------------------------------------------------------------------------
Pennsylvania Michigan Georgia
-------------------------------------------------------------------------------------------------------
Shares sold 3,532,337 1,049,221 1,288,523
Reinvestment of distributions 443,670 283,947 124,402
Shares reacquired (2,833,326) (1,470,712) (390,439)
-------------------------------------------------------------------------------------------------------
Share increase (decrease) 1,142,681 (137,544) 1,022,486
-------------------------------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements (continued)
Transactions (both shares and dollars) in Funds with multiple classes are as
follows:
Year Ended Year Ended
National September 30, 2000 September 30, 1999
-----------------------------------------------------------------------------------------------------------------------------------
Class A Shares Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------------------------------
Shares sold 2,901,563 $ 30,727,287 3,553,093 $ 41,120,760
Reinvestment of distributions 1,523,399 16,150,135 2,202,784 25,529,495
Shares reacquired (9,399,995) (99,389,229) (6,125,009) (70,108,828)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease (4,975,033) $(52,511,807) (369,132) $ (3,458,573)
-----------------------------------------------------------------------------------------------------------------------------------
Class B Shares
-----------------------------------------------------------------------------------------------------------------------------------
Shares sold 474,146 $ 5,031,939 916,903 $10,609,930
Reinvestment of distributions 24,938 265,133 36,662 425,255
Shares reacquired (351,289) (3,706,518) (260,671) (2,964,850)
-----------------------------------------------------------------------------------------------------------------------------------
Increase 147,795 $ 1,590,554) 692,894 $ 8,070,335
-----------------------------------------------------------------------------------------------------------------------------------
Class C Shares
-----------------------------------------------------------------------------------------------------------------------------------
Shares sold 388,903 $ 4,131,291 703,876 $ 8,199,010
Reinvestment of distributions 76,223 809,428 140,566 1,634,446
Shares reacquired (770,042) (8,154,193) (828,590) (9,521,760)
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) (304,916) $(3,213,474) 15,852 $ 311,696
-----------------------------------------------------------------------------------------------------------------------------------
New York
-----------------------------------------------------------------------------------------------------------------------------------
Class A Shares
-----------------------------------------------------------------------------------------------------------------------------------
Shares sold 1,102,478 $ 11,370,264 962,807 $ 10,721,047
Reinvestment of distributions 670,950 6,941,256 718,857 7,998,946
Shares reacquired (3,724,261) (38,428,967) (2,855,684) (31,414,585)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease (1,950,833) $(20,117,447) (1,174,020) $(12,694,592)
-----------------------------------------------------------------------------------------------------------------------------------
Class C Shares
-----------------------------------------------------------------------------------------------------------------------------------
Shares sold 46,095 $ 472,444 110,588 $1,246,694
Reinvestment of distributions 15,005 155,155 17,744 197,108
Shares reacquired (185,933) (1,915,101) (89,612) (980,061)
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) (124,833) $(1,287,502)) 38,720 $ 463,741
-----------------------------------------------------------------------------------------------------------------------------------
California
-----------------------------------------------------------------------------------------------------------------------------------
Class A Shares
-----------------------------------------------------------------------------------------------------------------------------------
Shares sold 952,596 $ 9,459,594 1,200,714 $ 12,975,648
Reinvestment of distributions 458,269 4,570,411 484,951 5,243,714
Shares reacquired (3,727,721) (37,099,980) (3,813,581) (40,951,155)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease (2,316,856) $(23,069,975) (2,127,916) $(22,731,793)
-----------------------------------------------------------------------------------------------------------------------------------
Class C Shares
-----------------------------------------------------------------------------------------------------------------------------------
Shares sold 117,415 $ 1,173,625 208,570 $ 2,266,676
Reinvestment of distributions 16,588 165,562 27,360 296,768
Shares reacquired (357,304) (3,564,334) (235,865) (2,529,400)
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) (223,301) $(2,225,147) 65 $ 34,044
-----------------------------------------------------------------------------------------------------------------------------------
62
<PAGE>
Notes to Financial Statements (continued)
Florida
Period Ended Year Ended Year Ended
September 30, 2000* October 31, 1999 October 31, 1998
------------------------------------------------------------------------------------------------------------------------------------
Class A Shares Shares Amount Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------------------
Shares sold 2,395,156 $10,888,821 2,140,580 $10,489,982 1,389,830 $6,880,942
Reinvestment of distributions 351,468 1,587,145 521,529 2,536,233 526,740 2,597,397
Shares reacquired (4,356,161) (19,667,710) (5,872,974) (27,847,385) (4,542,387) (22,396,582)
------------------------------------------------------------------------------------------------------------------------------------
Decrease (1,609,537) $(7,191,744) (3,210,865) $(14,821,170) (2,625,817) $(12,918,243)
------------------------------------------------------------------------------------------------------------------------------------
Period Ended Year Ended Year Ended
September 30, 2000* October 31, 1999 October 31, 1998
------------------------------------------------------------------------------------------------------------------------------------
Class C Shares Shares Amount Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------------------
Shares sold 119,156 $536,980 206,290 $1,006,874 227,206 $1,123,787
Reinvestment of distributions 10,811 48,862 23,004 112,584 23,490 111,969
Shares reacquired (439,613) (1,990,234) (351,921) (1,705,922) (329,582) (1,623,283)
------------------------------------------------------------------------------------------------------------------------------------
Decrease (309,646) $(1,404,392)) (122,627) $(586,464) (78,886) $(387,527)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The Company and the Trust (unaudited)
During the year ended September 30, 2000, 100%, of the distributions paid
by National, New York, Texas, New Jersey, Connecticut, Missouri, Hawaii,
Washington, Minnesota, California, Florida*, Pennsylvania*, Michigan* and
Georgia*, were exempt interest dividends and as such, are not subject to
U.S. Federal income tax.
*For the period November 1, 1999 to September 30, 2000.
63
<PAGE>
Independent Auditors' Reports
The Board of Directors and Shareholders,
Lord Abbett Tax-Free Income Fund, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Lord Abbett Tax-Free Income Fund, Inc. (the
"Company"), comprising, respectively, National Tax-Free Income Fund, New York
Tax-Free Income Fund, Texas Tax-Free Income Fund, New Jersey Tax-Free Income
Fund, Connecticut Tax-Free Income Fund, Missouri Tax-Free Income Fund, Hawaii
Tax-Free Income Fund, Washington Tax-Free Income Fund, Minnesota Tax-Free Income
Fund, and California Tax-Free Income Fund (collectively, the "Funds"), as of
September 30, 2000, the related statements of operations for the year then ended
and 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 the financial highlights are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements and the 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 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 Funds
constituting Lord Abbett Tax-Free Income Fund, Inc. as of September 30, 2000,
the results of their operations for the year then ended, the changes in their
net assets for each of the two years in the period then ended, and the financial
highlights for each of the periods presented, in conformity with accounting
principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
New York, New York
November 16, 2000
The Board of Trustees and Shareholders,
Lord Abbett Tax-Free Income Trust:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Lord Abbett Tax-Free Income Trust (the
"Trust"), comprising, respectively, Florida Series, Pennsylvania Series,
Michigan Series, and Georgia Series (collectively, the "Series"), as of
September 30, 2000, and the related statements of operations for the period
November 1, 1999 to September 30, 2000 and for the year ended October 31, 1999,
the statements of changes in net assets for the period November 1, 1999 to
September 30, 2000 and for each of the years in the two year period ended
October 31, 1999, and the financial highlights for each of the periods
presented. These financial statements and the financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and the 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 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 Lord Abbett
Tax-Free Income Trust as of September 30, 2000, the results of their operations
for the period November 1, 1999 to September 30, 2000 and for the year ended
October 31, 1999, the changes in their net assets for the period November 1,
1999 to September 30, 2000 and for each of the years in the two year period
ended October 31, 1999, and their financial highlights for each of the periods
presented, in conformity with accounting principles generally accepted in the
United States of America.
/s/ Deloitte & Touche LLP
New York, New York
November 16, 2000
64
<PAGE>
Lord, Abbett & Co.
Investment
Team Profile
Lord Abbett uses a team of portfolio managers and analysts acting together to
manage the Funds' investments.
Timothy Browse, Investment Team Leader, has been in the investment management
business since 1985. He received his BA from St. Lawrence University, an MBA
from Boston University and is the holder of a Chartered Financial Analyst
designation. Philip Fang, Investment Manager, has 12 years investment
experience. He received his BA from the University of Texas at Austin. Scott
Smith, Investment Manager, has been in the investment business since 1989. Other
team members include:
Walter Menendez, Municipal Bond Trader, who joined Lord Abbett in 1994; Lena
Brandow, Municipal Research Analyst, with the Firm since 1998; and Luke
Morosanu, Portfolio Assistant, who joined Lord Abbett in 2000.
The team reports directly to Robert Dow, Managing Partner and Chief Investment
Officer. Mr. Dow, together with Zane Brown, Partner and Director of Fixed Income
Management, oversee and review the team's investment strategies and
implementation.
About Your Fund and Trust's
Board of Directors and Trustees
The Securities and Exchange Commission (SEC) views the role of the independent
Board of Trustees as one of the most important com po nents in overseeing a
mutual fund. The Board of Trustees watches over the Funds' general oper ations
and represents your interests. Trustees review and approve every contract
between your Fund and Lord, Abbett & Co. (the Funds' investment manager) and
Lord Abbett Distributor LLC (the Funds' underwriter). They meet regularly to
review a wide variety of information and issues regard ing the Funds. Every
Trustee possesses extensive business experience. Lord Abbett Tax-Free Income
Fund and Trust shareholders are indeed fortunate to have a group of independent
Trustees with diverse backgrounds to provide a variety of viewpoints in
overseeing the Fund. Below, we feature one of our Trustees, E. Thayer Bigelow,
Jr.
E. Thayer Bigelow, Jr.
Director -- Lord Abbett
Tax-Free Income Fund
[PHOTO OF E. THAYER BIGELOW]
Mr. Bigelow is a graduate of Trinity College and earned his MBA at the
University of Virginia's Darden Business School. He is currently Senior Advisor
at Time Warner Inc. Prior to that, he was acting CEO of Courtroom Television
Network, and previously served for five years as President and CEO of Time
Warner Cable Programming, Inc.
Mr. Bigelow serves as a member of the Board of Trustees for the Cate School. He
is also a member of the Board of Directors of Crane Co. He has been an
independent director for all of Lord Abbett's Family of Funds since 1994.
<PAGE>
Investing in the
Lord Abbett
Family of Funds
<TABLE>
<CAPTION>
GROWTH INCOME
===================================================================================================================
Growth Funds Growth & Income Funds Tax-Free Money
Income Funds Income Funds Market Fund
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alpha Series(1) Affiliated Fund Bond-Debenture Fund o California U.S. Government
Global Fund Balanced Series(2) High Yield Fund o Connecticut Securities Money
Equity Series Growth & Income Series Global Fund-- o Florida Market Fund(3)(4)
Growth Research Fund-- Income Series o Georgia
Opportunities Large-Cap Series U.S. Government o Hawaii
Fund Securities Series(3) o Michigan
International Series Limited Duration U.S. o Minnesota
Large-Cap Growth Fund Government Securities o Missouri
Mid-Cap Value Fund Series(3) o National
Research Fund World Bond- o New Jersey
Small-Cap Value Series Debenture Series o New York
o Pennsylvania
o Texas
o Washington
</TABLE>
Finding the right mutual fund can be confusing. At Lord, Abbett & Co., we
believe that your investment professional provides value in helping you identify
and understand your investment objectives and, ultimately, offering fund
recommendations suitable for your individual needs.
For more complete information about any Lord Abbett Fund, including risks,
charges and ongoing expenses, call your investment professional or Lord Abbett
Distributor LLC at 800-874-3733 for a prospectus. Read it carefully before
investing.
Numbers to Keep Handy
For Shareholder Account or Statement Inquiries: 800-821-5129
For Literature Only: 800-874-3733
24-Hour Automated Shareholder Service Line: 800-865-7582
Visit Our Website: www.lordabbett.com
(1) Lord Abbett Securities Trust-Alpha Series is a "fund of funds" investing in
shares of Lord Abbett Developing Growth Fund, Lord Abbett Research
Fund-Small-Cap Value Series and Lord Abbett Securities Trust-International
Series.
(2) Lord Abbett Investment Trust-Balanced Series is a "fund of funds" investing
in shares of certain other Lord Abbett Funds.
(3) An investment in this Fund is neither insured nor guaranteed by the U.S.
Government.
(4) An investment in the Fund is neither insured not guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund. This Fund is managed to
maintain, and has maintained, its stable $1.00 price per share.
[LOGO] Lord, Abbett & Co.
Investment Management
A Tradition of Performance Through Disciplined Investing
Lord Abbett Mutual Fund shares are distributed by:
LORD ABBETT DISTRIBUTOR LLC
-----------------------------------------------------
90 Hudson Street o Jersey City, New Jersey 07302-3973
LATFI 2-900
(11/00)
