- -----------------------------------------------------------
Seligman
Tax-Exempt
Series Trust
- -----------------------------------------------------------
11th Annual Report
September 30, 1995
- -----------------------------------------------------------
(LOGO GOES HERE)
To the Shareholders
We are pleased to update you on Seligman Tax-Exempt Series Trust--the
California High-Yield and Quality Series, the Florida Series, and the
North Carolina Series--for the fiscal year ended September 30, 1995.
The past 12 months have been a particularly turbulent period for fixed-
income markets. During the fourth quarter of 1994, a strengthening economy
continued to fuel fears of an acceleration in the inflation rate. By mid-
November, municipal bond yields had climbed to their highest levels since
1991. Investors, until now conspicuous by their absence, were attracted by
higher yields and cautiously began buying. The municipal market, however,
was still trying to absorb an oversupply of inventory as well as attempting
to overcome the aftershocks of the Orange County, California, debacle and
thus improved at a slower rate than the U.S. Treasury market. As 1994 came
to a close, the bond market recovery was firmly under way. The Federal
Reserve Board's (FRB) decision on February 1 to once again raise the
federal funds rate helped to sustain the rally by boosting investor
confidence in the FRB's ability to contain inflation.
The U.S. economy finally began to exhibit signs of moderating during the
second quarter of 1995, spurring further declines in long-term yields. The
FRB, encouraged by economic reports, voted on July 6 to lower the federal
funds rate in order to minimize the risk of a recession. While the bond
markets initially reacted positively to this news, it wasn't long before
the next round of economic reports proved surprisingly robust, prompting
speculation that the economy was not as weak as believed. Long-term yields
reversed their decline and spiked sharply, dashing hopes of an imminent FRB
easing. The municipal market began to improve in late August as signs of
economic strength abated. By September 30, long-term yields were
essentially unchanged from a year ago.
For much of the past year, municipal market participants have been
focusing on tax reform legislation. Investors, concerned about the impact
on the tax-exempt status of municipal securities, have been demanding
higher yields as compensation. Currently, long-term municipal bonds,
compared with taxable bonds, are the most attractive they have been all
year.
A discussion with your Portfolio Manager about your Trust, along with
highlights of performance, long-term investment results, portfolio
holdings, and financial statements, follows this letter.
For any additional information about Seligman Tax-Exempt Series Trust,
or your investment in its shares, please write or call using the toll-free
telephone numbers listed on page 26 of this report.
By order of the Trustees,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Brian T. Zino
Brian T. Zino
President
November 3, 1995
<PAGE>
Seligman Tax-Exempt Series Trust
<TABLE>
<CAPTION>
Highlights September 30, 1995 California California North
High-Yield Quality Florida Carolina
Series Series Series Series
Net Assets:
<S> <C> <C> <C> <C>
Class A (in millions) $51.5 $94.9 $49.0 $37.4
Class D (in millions) 1.3 0.9 0.6 1.3
Yield:*
Class A 4.28% 4.60% 4.04% 4.51%
Class D 3.60 3.94 3.51 4.00
Dividends:**
Class A $0.369 $0.344 $0.403 $0.389
Class D 0.307 0.280 0.339 0.330
Capital Gain Distributions** -- $0.058 $0.002 $0.013
Net asset value per share:
Class A $6.47 $6.65 $7.71 $7.74
Class D 6.48 6.63 7.72 7.74
Maximum offering price per share:
Class A $6.79 $6.98 $8.09 $8.13
Class D 6.48 6.63 7.72 7.74
Moody's/S&P Ratings+
Aaa/AAA 15% 67% 75% 45%
Aa/AA 7 22 16 27
A/A 25 11 9 28
Baa/BBB 14 -- -- --
Non-rated 39 -- -- --
Holdings by Market Sector+
Revenue Bonds 69% 88% 65% 77%
General Obligation Bonds 31 12 35 23
Weighted Average Maturity (years) 15.0 21.8 17.6 22.3
*Current yield representing the annualized yield for the 30-day period ended September 30, 1995.
**Represents per share amount paid or declared in respect of Class A and Class D shares during the year
ended September 30, 1995.
+Percentages based on current market values of long-term holdings.
Note: The yields have been computed in accordance with current SEC regulations and will vary, and the
principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their
original cost. A small portion of each State Series' income may be subject to applicable state and local
taxes and to the federal alternative minimum tax. Past performance is not indicative of future investment
results.
</TABLE>
<PAGE>
Annual Performance Overview
The following is a biography of your Portfolio Manager, a discussion with
him regarding Seligman Tax-Exempt Series Trust, and a chart and table
comparing your Trust's performance to the performance of the Lehman
Brothers Municipal Bond Index.
Your Portfolio Manager
(PHOTO of Thomas G. Moles GOES HERE)
Thomas G. Moles is a Managing Director of J. & W. Seligman & Co.
Incorporated, as well as President and Senior Portfolio Manager of Seligman
Select Municipal Fund and Seligman Quality Municipal Fund, and Vice
President and Senior Portfolio Manager of the Seligman tax-exempt mutual
funds which include 19 separate portfolios. He is responsible for more than
$2 billion in tax-exempt securities. Mr. Moles, with more than 25 years of
experience, has spearheaded Seligman's tax-exempt efforts since joining the
firm in 1983.
Factors Affecting Seligman Tax-Exempt Series Trust
"In general, the investment environment for municipal securities in 1995
was much more advantageous than in 1994. Looking back, interest rates
continued to move higher during the fourth quarter of 1994 as negative
market sentiment prevailed. The net asset values on long-term municipal
bond mutual funds, including your Trust, declined as a result. The
municipal market was further impacted by the Orange County, California,
bankruptcy, which undermined confidence in the market.
"During the first half of 1995, yields on municipal bonds trended lower as
the economy exhibited signs of moderating. The municipal market, however,
underperformed the U.S. Treasury market due to concerns regarding tax
reform. During the third quarter, stronger-than-expected economic reports
caused a brief spike in interest rates. By September 30, however, the
overall decline in long-term yields over the past 12 months had caused the
net asset values of your Trust to improve."
Your Manager's Investment Strategy
"For much of the past year, there has been little difference between yields
on 20-year and 30-year municipal bonds. We took advantage of the narrow
yield spread and shortened maturities where opportunities allowed. By
implementing this strategy, the Trust was able to maintain yields while
lessening volatility.
"As the bond market gradually improved, your Trust assumed a less defensive
posture. Shorter-term prerefunded positions were reduced and replaced with
long-term bonds, as long-term bonds generally realize greater price
appreciation than shorter-term bonds in a declining interest rate
environment.
"The Trust continues to concentrate new purchases in higher-quality
municipal bonds. The market has not been offering enough of an additional
yield on lower-rated bonds to compensate for their increased risk. In
addition, the Trust has focused on bonds issued to provide for essential
services, such as water and sewer facilities, transportation projects, etc.
These bonds generally offer increased security because revenues derived
from the projects are often pledged as repayment for the principal and
interest on the bonds."
Looking Ahead
"The municipal market faces many challenges in the months to come. With the
Federal government shifting more and more responsibilities to individual
states, we are concerned about the impact on state budgets. Additionally,
the possibility exists that future tax reform legislation may affect the
tax-exempt status of municipal securities. At present, however, tax reform
is not a consideration in our decision making process. We will continue to
stay abreast of the latest developments and adjust our strategy
accordingly. Despite the challenges, we remain optimistic about the
prospects for the municipal market. We believe a moderating economy and a
vigilant Federal Reserve Board should keep inflation in check and prevent a
repeat of the dramatic interest rate increases that occurred in 1994."
<PAGE>
Performance Comparison Charts and Tables September 30, 1995
The following charts compare a $10,000 hypothetical investment made in each
Series of Seligman Tax-Exempt Series Trust Class A shares, with and without
the maximum initial sales charge of 4.75%, for the 10-year or since-
inception (where applicable) periods ended September 30, 1995, to a $10,000
hypothetical investment made in the Lehman Brothers Municipal Bond Index
(Lehman Index) for the same periods. The performance of each Series of
Seligman Tax-Exempt Series Trust Class D shares is not shown in the charts
but is included in the table below each chart. It is important to keep in
mind that the Lehman Index excludes the effects of any fees or sales
charges, and does not reflect state-specific bond market performance.
Seligman California Tax-Exempt High-Yield Series
(The following table is the source data for the line chart which appears
at this point in the printed document. This table is not part of the
original printed document and is shown for reference only. The same is
also true for this descriptive paragraph.)
Seligman California Tax-Exempt High-Yield Series
Class A
with without
sales charge sales charge Lehman Index
9/30/85 $9,520.77 $10,000.00 $10,000.00
12/31/85 $10,323.43 $10,843.06 $10,807.87
3/31/86 $11,334.69 $11,905.22 $11,902.14
6/30/86 $11,296.66 $11,865.27 $11,829.06
9/30/86 $11,880.77 $12,478.79 $12,464.87
12/31/86 $12,275.72 $12,893.63 $12,895.64
3/31/87 $12,622.22 $13,257.57 $13,207.78
6/30/87 $12,177.96 $12,790.95 $12,849.29
9/30/87 $11,707.44 $12,296.76 $12,529.90
12/31/87 $12,268.72 $12,886.29 $13,089.78
3/31/88 $12,771.63 $13,414.50 $13,539.73
6/30/88 $13,004.99 $13,659.62 $13,802.22
9/30/88 $13,431.15 $14,107.22 $14,156.10
12/31/88 $13,879.33 $14,577.96 $14,420.02
3/31/89 $14,027.29 $14,733.37 $14,515.52
6/30/89 $14,678.98 $15,417.85 $15,374.75
9/30/89 $14,721.66 $15,462.68 $15,385.45
12/31/89 $15,167.06 $15,930.49 $15,975.78
3/31/90 $15,301.71 $16,071.92 $16,047.33
6/30/90 $15,631.01 $16,417.79 $16,422.02
9/30/90 $15,541.83 $16,324.13 $16,431.64
12/31/90 $16,077.50 $16,886.75 $17,140.38
3/31/91 $16,446.51 $17,274.34 $17,527.83
6/30/91 $16,802.18 $17,647.91 $17,901.99
9/30/91 $17,488.55 $18,368.83 $18,597.71
12/31/91 $17,762.48 $18,656.55 $19,221.27
3/31/92 $18,017.02 $18,923.91 $19,278.39
6/30/92 $18,663.01 $19,602.40 $20,009.10
9/30/92 $19,062.02 $20,021.49 $20,541.50
12/31/92 $19,455.87 $20,435.17 $20,915.25
3/31/93 $20,021.06 $21,028.81 $21,692.06
6/30/93 $20,599.23 $21,636.07 $22,401.82
9/30/93 $21,094.50 $22,156.28 $23,159.00
12/31/93 $21,383.44 $22,459.77 $23,484.78
3/31/94 $20,891.01 $21,942.55 $22,195.61
6/30/94 $21,008.52 $22,065.98 $22,439.94
9/30/94 $21,181.22 $22,247.39 $22,593.72
12/31/94 $20,786.71 $21,833.02 $22,270.84
3/31/95 $22,133.48 $23,247.58 $23,844.34
6/30/95 $22,557.45 $23,692.89 $24,418.70
9/30/95 $23,055.37 $24,215.86 $25,120.77
The table below shows the average annual total returns for the one-, five-,
and 10-year periods through September 30, 1995, for Seligman California
Tax-Exempt High-Yield Series Class A shares, with and without the maximum
initial sales charge of 4.75%, and the Lehman Index. Also included in the
table are the average annual total returns for the one-year and since-
inception periods through September 30, 1995, for Seligman California Tax-
Exempt High-Yield Series Class D shares, with and without the effect of the
1% contingent deferred sales load ("CDSL") imposed on shares redeemed
within one year of purchase, and the Lehman Index.
Average Annual Total Returns
<TABLE>
<CAPTION>
Since
One Five 10 One Inception
Year Years Years Year 2/1/94
---- ----- ----- ---- ---------
<S> <C> <C> <C> <C> <C> <C>
Seligman California Tax-Exempt Seligman California Tax-Exempt
High-Yield Series High-Yield Series
Class A with Sales Charge 3.74% 7.15% 8.71% Class D with CDSL 6.78% n/a
Class A without Sales Charge 8.85 8.21 9.25 Class D without CDSL 7.78 3.05%
Lehman Index 11.18 8.86 9.65 Lehman Index 11.18 3.43
See page 7 for footnotes.
</TABLE>
<PAGE>
Seligman California Tax-Exempt Quality Series
(The following table is the source data for the line chart which appears
at this point in the printed document. This table is not part of the
original printed document and is shown for reference only. The same is
also true for this descriptive paragraph.)
Seligman California Tax-Exempt Quality Series
Class A
with without
sales charge sales charge Lehman Index
9/30/85 $9,522.29 $10,000.00 $10,000.00
12/31/85 $10,333.27 $10,851.66 $10,807.87
3/31/86 $11,305.52 $11,872.68 $11,902.14
6/30/86 $11,189.29 $11,750.62 $11,829.06
9/30/86 $11,718.20 $12,306.07 $12,464.87
12/31/86 $12,231.93 $12,845.56 $12,895.64
3/31/87 $12,503.32 $13,130.56 $13,207.78
6/30/87 $11,922.83 $12,520.94 $12,849.29
9/30/87 $11,414.86 $11,987.49 $12,529.90
12/31/87 $12,085.15 $12,691.41 $13,089.78
3/31/88 $12,502.91 $13,130.12 $13,539.73
6/30/88 $12,758.33 $13,398.35 $13,802.22
9/30/88 $13,054.54 $13,709.41 $14,156.10
12/31/88 $13,533.25 $14,212.14 $14,420.02
3/31/89 $13,626.57 $14,310.13 $14,515.52
6/30/89 $14,460.79 $15,186.21 $15,374.75
9/30/89 $14,341.10 $15,060.52 $15,385.45
12/31/89 $14,855.06 $15,600.26 $15,975.78
3/31/90 $14,837.34 $15,581.64 $16,047.33
6/30/90 $15,212.28 $15,975.41 $16,422.02
9/30/90 $14,946.88 $15,696.69 $16,431.64
12/31/90 $15,830.33 $16,624.46 $17,140.38
3/31/91 $16,096.70 $16,904.20 $17,527.83
6/30/91 $16,401.92 $17,224.73 $17,901.99
9/30/91 $17,091.70 $17,949.10 $18,597.71
12/31/91 $17,606.56 $18,489.80 $19,221.27
3/31/92 $17,578.29 $18,460.11 $19,278.39
6/30/92 $18,352.27 $19,272.92 $20,009.10
9/30/92 $18,725.49 $19,664.86 $20,541.50
12/31/92 $19,100.90 $20,059.10 $20,915.25
3/31/93 $20,010.30 $21,014.11 $21,692.06
6/30/93 $20,621.98 $21,656.47 $22,401.82
9/30/93 $21,332.07 $22,402.18 $23,159.00
12/31/93 $21,508.81 $22,587.79 $23,484.78
3/31/94 $20,083.52 $21,091.00 $22,195.61
6/30/94 $20,115.12 $21,124.19 $22,439.94
9/30/94 $20,167.59 $21,179.29 $22,593.72
12/31/94 $19,723.76 $20,713.20 $22,270.84
3/31/95 $21,493.30 $22,571.50 $23,844.34
6/30/95 $21,773.93 $22,866.21 $24,418.70
9/30/95 $22,354.85 $23,476.27 $25,120.77
The table below shows the average annual total returns for the one-, five-,
and 10-year periods through September 30, 1995, for Seligman California
Tax-Exempt Quality Series Class A shares, with and without the maximum
initial sales charge of 4.75%, and the Lehman Index. Also included in the
table are the average annual total returns for the one-year and since-
inception periods through September 30, 1995, for Seligman California Tax-
Exempt Quality Series Class D shares, with and without the effect of the 1%
contingent deferred sales load ("CDSL") imposed on shares redeemed within
one year of purchase, and the Lehman Index.
Average Annual Total Returns
<TABLE>
<CAPTION>
Since
One Five 10 One Inception
Year Years Years Year 2/1/94
---- ----- ----- ---- ---------
<S> <C> <C> <C> <C> <C> <C>
Seligman California Tax-Exempt Seligman California Tax-Exempt
Quality Series Quality Series
Class A with Sales Charge 5.56% 7.33% 8.38% Class D with CDSL 8.61% n/a
Class A without Sales Charge 10.85 8.38 8.91 Class D without CDSL 9.61 0.50%
Lehman Index 11.18 8.86 9.65 Lehman Index 11.18 3.43
See page 7 for footnotes.
</TABLE>
<PAGE>
Seligman Florida Tax-Exempt Series
(The following table is the source data for the line chart which appears
at this point in the printed document. This table is not part of the
original printed document and is shown for reference only. The same is
also true for this descriptive paragraph.)
Seligman Florida Tax-Exempt Series
Class A
with without
sales charge sales charge Lehman Index
11/17/86 $9,520.00 $10,000.00 $10,000.00
12/31/86 $9,440.00 $9,915.96 $9,972.40
3/31/87 $9,746.15 $10,237.55 $10,213.78
6/30/87 $9,038.15 $9,493.86 $9,936.55
9/30/87 $8,497.14 $8,925.56 $9,689.56
12/31/87 $9,211.39 $9,675.82 $10,122.53
3/31/88 $9,528.34 $10,008.75 $10,470.48
6/30/88 $9,821.14 $10,316.32 $10,673.47
9/30/88 $10,181.11 $10,694.43 $10,947.14
12/31/88 $10,602.68 $11,137.25 $11,151.23
3/31/89 $10,667.50 $11,205.34 $11,225.08
6/30/89 $11,466.91 $12,045.05 $11,889.54
9/30/89 $11,329.57 $11,900.79 $11,897.81
12/31/89 $11,806.56 $12,401.83 $12,354.32
3/31/90 $11,780.85 $12,374.83 $12,409.65
6/30/90 $12,088.56 $12,698.06 $12,669.40
9/30/90 $11,921.60 $12,522.68 $12,706.84
12/31/90 $12,568.70 $13,202.41 $13,254.92
3/31/91 $12,807.12 $13,452.86 $13,554.55
6/30/91 $13,070.42 $13,729.43 $13,843.89
9/30/91 $13,519.93 $14,201.60 $14,381.90
12/31/91 $13,902.81 $14,603.78 $14,864.10
3/31/92 $13,936.69 $14,639.37 $14,908.27
6/30/92 $14,487.07 $15,217.51 $15,473.35
9/30/92 $14,769.87 $15,514.56 $15,885.06
12/31/92 $15,164.27 $15,928.85 $16,174.09
3/31/93 $15,728.89 $16,521.94 $16,774.81
6/30/93 $16,410.07 $17,237.46 $17,323.68
9/30/93 $17,015.92 $17,873.85 $17,909.21
12/31/93 $17,214.39 $18,082.34 $18,161.15
3/31/94 $16,183.72 $16,999.71 $17,164.21
6/30/94 $16,310.21 $17,132.58 $17,353.16
9/30/94 $16,337.34 $17,161.07 $17,472.07
12/31/94 $16,264.46 $17,084.52 $17,222.38
3/31/95 $17,402.95 $18,280.41 $18,439.20
6/30/95 $17,677.99 $18,569.31 $18,883.36
9/30/95 $18,113.67 $19,026.96 $19,426.28
The table below shows the average annual total returns for the one-year,
five-year, and since-inception periods through September 30, 1995, for
Seligman Florida Tax-Exempt Series Class A shares, with and without the
maximum initial sales charge of 4.75%, and the Lehman Index. Also included
in the table are the average annual total returns for the one-year and
since-inception periods through September 30, 1995, for Seligman Florida
Tax-Exempt Series Class D shares, with and without the effect of the 1%
contingent deferred sales load ("CDSL") imposed on shares redeemed within
one year of purchase, and the Lehman Index.
Average Annual Total Returns+
<TABLE>
<CAPTION>
Since Since
One Five Inception One Inception
Year Years 11/17/86 Year 2/1/94
---- ----- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C>
Seligman Florida Seligman Florida
Tax-Exempt Series Tax-Exempt Series
Class A with Sales Charge 5.55% 7.69% 6.93% Class D with CDSL 9.07% n/a
Class A without Sales Charge 10.87 8.73 7.52 Class D without CDSL 10.07 1.66%
Lehman Index 11.18 8.86 7.81* Lehman Index 11.18 3.43
*From 11/30/86.
</TABLE>
See page 7 for footnotes.
<PAGE>
Seligman North Carolina Tax-Exempt Series
(The following table is the source data for the line chart which appears
at this point in the printed document. This table is not part of the
original printed document and is shown for reference only. The same is
also true for this descriptive paragraph.)
Seligman North Carolina Tax-Exempt Series
Class A
with without
sales charge sales charge Lehman Index
8/27/90 $9,520.00 $10,000.00 $10,000.00
9/30/90 $9,386.66 $9,859.94 $10,005.70
12/31/90 $9,783.90 $10,277.21 $10,437.27
3/31/91 $9,982.14 $10,485.43 $10,673.21
6/30/91 $10,082.82 $10,591.19 $10,901.04
9/30/91 $10,509.87 $11,039.77 $11,324.68
12/31/91 $10,823.93 $11,369.67 $11,704.39
3/31/92 $10,779.24 $11,322.73 $11,739.17
6/30/92 $11,211.91 $11,777.21 $12,184.12
9/30/92 $11,479.45 $12,058.24 $12,508.32
12/31/92 $11,706.35 $12,296.58 $12,735.90
3/31/93 $12,197.08 $12,812.04 $13,208.93
6/30/93 $12,631.47 $13,268.32 $13,641.12
9/30/93 $13,138.91 $13,801.36 $14,102.18
12/31/93 $13,225.95 $13,892.77 $14,300.57
3/31/94 $12,335.48 $12,957.41 $13,515.55
6/30/94 $12,372.28 $12,996.07 $13,664.33
9/30/94 $12,376.73 $13,000.75 $13,757.97
12/31/94 $12,254.16 $12,872.00 $13,561.36
3/31/95 $13,322.58 $13,994.27 $14,519.51
6/30/95 $13,563.10 $14,246.92 $14,869.25
9/30/95 $13,852.23 $14,550.63 $15,296.76
The table below shows the average annual total returns for the one-year,
five-year, and since-inception periods through September 30, 1995, for
Seligman North Carolina Tax-Exempt Series Class A shares, with and without
the maximum initial sales charge of 4.75%, and the Lehman Index. Also
included in the table are the average annual total returns for the one-year
and since-inception periods through September 30, 1995, for Seligman North
Carolina Tax-Exempt Series Class D shares, with and without the effect of
the 1% contingent deferred sales load ("CDSL") imposed on shares redeemed
within one year of purchase, and the Lehman Index.
Average Annual Total Returns+
<TABLE>
<CAPTION>
Since Since
One Five Inception One Inception
Year Years 8/27/90 Year 2/1/94
---- ----- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C>
Seligman North Carolina Seligman North Carolina
Tax-Exempt Series Tax-Exempt Series
Class A with Sales Charge 6.66% 7.05% 6.61% Class D with CDSL 10.19% n/a
Class A without Sales Charge 11.92 8.09 7.64 Class D without CDSL 11.19 1.28%
Lehman Index 11.18 8.86 8.72* Lehman Index 11.18 3.43
*From 8/31/90.
</TABLE>
+ At its discretion, the Manager waived all or a portion of its fees and,
in some cases, reimbursed certain expenses for the Florida and North
Carolina Series. This has the effect of increasing the Series' average
annual total returns for all periods presented.
No adjustment was made to Class A shares' performance for periods prior to
commencement dates, December 27, 1990, in the case of the Florida Series,
and January 1, 1993, in the case of the California High-Yield and
California Quality Series, for the annual Administration, Shareholder
Services and Distribution Plan fee of up to 0.25% of average daily net
assets of each Series. The performance of Class D shares will be greater
than or less than the performance shown for Class A shares, based on
differences in sales charges and fees paid by shareholders. Performance
data quoted represent changes in prices and assume that all distributions
within the periods are invested in additional shares. The investment return
and principal value of an investment will fluctuate so that shares, if
redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
<PAGE>
<TABLE>
Portfolios of Investments September 30, 1995
<CAPTION>
CALIFORNIA HIGH-YIELD SERIES
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
------ --------------- ------------ -----------
<C> <S> <C> <C>
$ 710,000 Alameda, CA Community Improvement Commission Tax Allocation Bonds
(West End Community Improvement Project), 9.20% due 1/1/2016 NR/NR $ 751,457
1,000,000 Bakersfield, CA Hospital Rev. (Bakersfield Memorial Hospital), 6.50% due 1/1/2022 A/A 1,013,220
825,000 Barstow, CA Redevelopment Agency Tax Allocation Bonds (Central Redevelopment
Project), 7 5/8% due 8/1/2011 NR/NR 873,724
3,000,000 California Department of Water Resources Water System Rev. (Central Valley Project),
6% due 12/1/2020 Aa/AA 2,984,250
1,000,000 California Health Facilities Financing Authority Rev. Catholic Health Corporation
(St. Elizabeth Community Hospital Project), 6.30% due 11/15/2015 A1/A+ 1,001,950
1,500,000 California Pollution Control Financing Authority Pollution Control Rev.
(Pacific Gas & Electric Co.), 7.50% due 5/1/2016 A2/A 1,564,800
2,500,000 California Public Works Board Lease Rev. (Department of Corrections--Del Norte),
5 1/8% due 12/1/2008 A/A- 2,376,750
1,000,000 Cupertino, CA Certificates of Participation (Cupertino Public Facilities Corporation),
7.75% due 7/1/2016 NR/NR 1,047,010
175,000 Fairfield, CA Improvement Bonds (Smith Ranch Assessment District),
7.35% due 9/2/2003 NR/NR 180,448
155,000 Fairfield, CA Improvement Bonds (Smith Ranch Assessment District),
7.40% due 9/2/2007 NR/NR 159,745
1,000,000 Folsom, CA Special Tax Bonds (Willow Creek Community Facilities District No. 1),
8.25% due 12/1/2006 NR/NR 1,073,350
1,000,000 Fontana, CA Certificates of Participation (Police Facility Project), 7.75% due 4/1/2016 Baa/NR 1,038,220
500,000 Los Angeles, CA Certificates of Participation (Convention & Exhibition Center
Authority), 7 3/8% due 8/15/2018 Aaa/AAA 561,275
500,000 Los Angeles, CA Community Redevelopment Agency Multi-Family Housing Rev.
(Grand Central Square), 5.85% due 12/1/2026* A/BBB+ 436,460
1,300,000 Los Angeles, CA Wastewater System Rev., 7.10% due 6/1/2018 A1/A 1,426,841
1,000,000 Los Angeles County, CA Certificates of Participation (Sheriff's Training Academy
and San Fernando Courthouse), 7.75% due 7/1/2016 NR/NR 1,047,010
2,385,000 Los Angeles County, CA Transportation Commission Sales Tax Rev.,
5.75% due 7/1/2018 Aaa/AAA 2,308,370
400,000 Milpitas, CA Local Improvement District No. 9 (Milpitas Business Park),
7.25% due 9/2/2007 NR/NR 408,608
400,000 Milpitas, CA Local Improvement District No. 9 (Milpitas Business Park),
7.30% due 9/2/2008 NR/NR 409,380
250,000 Milpitas, CA Local Improvement District No. 9 (Milpitas Business Park),
7.30% due 9/2/2011 NR/NR 255,180
100,000 Oxnard, CA Certificates of Participation (River Ridge Public Parking Project),
9.10% due 12/1/2003 Baa1/BBB+ 102,852
1,000,000 Oxnard Union High School District, CA Certificates of Participation
(Union High School), 7.70% due 11/1/2019 NR/NR 1,139,340
750,000 Petaluma, CA Community Development Commission Tax Allocation Bonds
(Central Business District), 9.30% due 5/15/2010 Baa1/NR 756,727
2,245,000 Pleasanton, CA Joint Powers Financing Authority Reassessment Rev.,
6.15% due 9/2/2012 Baa/NR 2,237,816
1,020,000 Rancho Mirage, CA Improvement Bonds Assessment District No. 22-85
(Frank Sinatra Drive Extension), 8.30% due 9/2/2008 NR/NR 1,053,813
1,200,000 Rancho Mirage, CA Improvement Bonds Assessment District No. 22-85
(Frank Sinatra Drive Extension), 8.30% due 9/2/2011 NR/NR 1,240,296
5,000 Riverside County, CA (Single Family Mortgage Rev.), 10.50% due 9/1/2014 NR/BBB+ 5,253
2,000,000 San Francisco, CA State Building Authority Lease Rev. (State of California Dept. of
General Services Lease), 5% due 10/1/2013 A/A- 1,769,540
3,000,000 San Joaquin Hills, CA Transportation Corridor Agency (Orange County
Senior Lien Toll Road), 6.75% due 1/1/2032 NR/NR 3,040,740
1,500,000 Santa Barbara, CA Certificates of Participation (Harbor Improvement Project),
7.70% due 10/1/2016 NR/NR 1,530,435
1,000,000 Santa Clara, CA Improvement Bonds Project No. 186 (Santa Clara Convention Center
Complex), 7.10% due 9/2/2011 NR/NR 1,030,410
1,500,000 Santa Cruz, CA Hospital Rev. (Dominican Santa Cruz Hospital), 7% due 12/1/2013 A1/A+ 1,586,550
2,000,000 Santa Margarita, CA Water District G.O.'s, 7.50% due 11/1/2005 NR/NR 2,091,640
1,000,000 Southern California Public Power Authority Power Project Rev. (Multiple Projects),
6% due 7/1/2018 A/A 970,910
3,000,000 Southern California Public Power Authority Power Project Rev. (Multiple Projects),
6% due 7/1/2018 Aaa/AAA 3,203,670
940,000 Stanislaus, CA Waste-to-Energy Financing Agency Solid Waste Facility Rev.
(Ogden Martin System of Stanislaus, Inc. Project), 7.50% due 1/1/2005 NR/BBB+ 985,421
785,000 Stanislaus, CA Waste-to-Energy Financing Agency Solid Waste Facility Rev.
(Ogden Martin System of Stanislaus, Inc. Project), 7 5/8% due 1/1/2010 NR/BBB+ 834,628
250,000 Tustin, CA Improvement Bonds (Assessment District No. 85-1), 8.15% due 9/2/2011 NR/NR 256,377
615,000 Tustin, CA Improvement Bonds (Assessment District No. 85-1), 8.15% due 9/2/2011 NR/NR 635,855
1,000,000 Ukiah, CA Electric Rev., 8% due 6/1/2018 NR/AAA 1,047,160
-----------
Total Municipal Bonds (Cost $44,563,474)--88.0% 46,437,481
-----------
Variable Rate Demand Notes
--------------------------
2,000,000 New York City G.O.'s due 10/1/2021 VMIG-1/A-1+ 2,000,000
3,300,000 Person County, NC Industrial Facility & Pollution Control Rev. due 11/1/2016* P-1/NR 3,300,000
-----------
Total Variable Rate Demand Notes (Cost $5,300,000)--10.0% 5,300,000
-----------
Other Assets Less Liabilities--2.0% 1,043,830
-----------
NET ASSETS--100.0% $52,781,311
* Interest income earned from this security is subject to the federal alternative minimum tax. ===========
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
<PAGE>
<CAPTION>
CALIFORNIA QUALITY SERIES
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
------ --------------- ------------ -----------
<C> <S> <C> <C>
$2,000,000 California Department of Water Resources Water System Rev. (Central Valley Project),
6 1/8% due 12/1/2013 Aa/AA $ 2,021,140
2,000,000 California Educational Facilities Authority Rev. (Stanford University), 6.75% due 1/1/2013 Aaa/AAA 2,187,160
3,200,000 California Educational Facilities Authority Rev. (University of Southern California Project),
5.80% due 10/1/2015 Aa/AA 3,086,304
3,440,000 California Educational Facilities Authority Rev. (Pomona College), 6% due 2/15/2017 Aa1/AA 3,439,656
4,500,000 California Educational Facilities Authority Rev. (California Institute of Technology),
6% due 1/1/2021 Aaa/AAA 4,501,755
3,000,000 California Health Facilities Financing Authority Health Facility Rev. (Kaiser Permanente),
6.50% due 12/1/2020 Aa3/AA 3,056,340
2,000,000 California Health Facilities Financing Authority Insured Hospital Rev.
(Scripps Memorial Hospital), 6 3/8% due 10/1/2022 Aaa/AAA 2,061,400
5,000 California Housing Finance Agency (Housing Revenue Insured Bonds),
8.75% due 8/1/2010 Aaa/AAA 5,309
425,000 California Housing Finance Agency (Housing Revenue Insured Bonds),
8 5/8% due 8/1/2015 Aaa/AAA 450,547
2,000,000 California Housing Finance Agency Housing Rev., 5.60% due 8/1/2024 Aaa/AAA 1,862,300
2,850,000 California Housing Finance Agency Home Mortgage Rev., 6.75% due 2/1/2025* Aa/AA- 2,911,132
960,000 California Public Capital Improvements Financing Authority (Pooled Projects),
8.10% due 3/1/2018 Aaa/AAA 1,036,819
3,000,000 California Public Works Board Lease Rev. (Correctional Facilities Improvements),
5.75% due 9/1/2021 A/A- 2,797,590
7,000,000 California State G.O.'s, 4.75% due 9/1/2010 A1/A 6,170,010
3,000,000 California Statewide Communities Development Authority Certificates of Participation
(The Trustees of the J. Paul Getty Trust), 5% due 10/1/2023 Aaa/AAA 2,632,140
5,000,000 Contra Costa Water District, CA, 5.50% due 10/1/2019 Aaa/AAA 4,732,600
3,500,000 East Bay, CA Municipal Utility District Water System Rev., 6% due 6/1/2012 Aaa/AAA 3,537,275
2,500,000 Eastern Municipal Water District Riverside County, CA Water and Sewer Rev.,
6.75% due 7/1/2012 Aaa/AAA 2,786,375
3,000,000 Fresno, CA Sewer System Rev., 5.25% due 9/1/2019 Aaa/AAA 2,760,540
2,000,000 Industry, CA G.O.'s, 7 3/8% due 7/1/2015 Aaa/AAA 2,247,300
3,000,000 Los Angeles Department of Water & Power, CA Electric Plant Rev., 6 3/8% due 2/1/2020 Aa/AA- 3,060,480
2,000,000 M-S-R Public Power Agency, CA (San Juan Project), 6 7/8% due 7/1/2019 Aaa/AAA 2,088,720
2,000,000 Marin, CA Municipal Water District Water Rev., 5.65% due 7/1/2023 A1/AA 1,885,140
3,000,000 Metropolitan Water District of Southern California Waterworks G.O.'s,
5.75% due 3/1/2014 Aaa/AAA 2,949,660
4,500,000 Northern California Power Agency Public Power Rev. (Combustion Turbine Project A-1),
6% due 8/15/2010 Aaa/AAA 4,567,815
4,500,000 Orange County, CA Local Transportation Authority (Measure M Sales Tax Rev.),
6% due 2/15/2009 Aaa/AAA 4,624,740
3,250,000 San Francisco Bay Area Rapid Transit District, CA (Sales Tax Rev.), 6.60% due 7/1/2012 Aaa/AAA 3,474,868
3,000,000 San Francisco, CA (City & County) Airport Commission Rev.
(International Airport), 6.60% due 5/1/2024* Aaa/AAA 3,160,950
3,000,000 San Francisco, CA (City & County) Public Utilities Commission Water Rev.,
6% due 11/1/2015 Aa/AA 3,001,500
2,000,000 Santa Rosa, CA (Sonoma County) Wastewater Rev. (Subregional Wastewater Project),
6.50% due 9/1/2022 Aaa/AAA 2,100,580
4,500,000 Southern California Public Power Authority Transmission Project Rev.,
5% due 7/1/2022 Aaa/AAA 3,893,085
5,000,000 University of California Regents (Multiple Purpose Projects), 6 3/8% due 9/1/2024 Aaa/AAA 5,152,100
-----------
Total Municipal Bonds (Cost $92,560,054)--98.4% 94,243,330
Variable Rate Demand Notes (Cost $300,000)--0.3% 300,000
Other Assets Less Liabilities--1.3% 1,266,225
-----------
NET ASSETS--100.0% $95,809,555
* Interest income earned from this security is subject to the federal alternative minimum tax. ===========
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
<PAGE>
<CAPTION>
FLORIDA SERIES
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
------ --------------- ------------ -----------
<C> <S> <C> <C>
500,000 Broward County, FL G.O.'s (Environmentally Sensitive Lands Project),
6.90% due 7/1/2009 Aaa/AAA $ 532,925
2,000,000 Broward County, FL Water & Sewer Utility Rev., 6.50% due 10/1/2017 Aaa/AAA 2,227,080
2,500,000 Broward County, FL Water & Sewer Utility Rev., 5% due 10/1/2018 Aaa/AAA 2,241,825
1,500,000 Broward County School District, FL G.O.'s, 7 1/8% due 2/15/2008 Aaa/AAA 1,659,285
1,500,000 Citrus County, FL Pollution Control Rev. (Florida Power Corporation Crystal River
Power Plant Project), 6 5/8% due 1/1/2027 A1/A+ 1,574,070
2,000,000 Collier County, FL Water & Sewer Rev., 5.25% due 7/1/2021 Aaa/AAA 1,838,640
1,250,000 Dade County, FL Aviation Rev., 6 1/8% due 10/1/2020* Aaa/AAA 1,262,425
1,000,000 Dade County, FL Public Facilities Rev. (Jackson Memorial Hospital),
5.25% due 6/1/2023 Aaa/AAA 910,520
1,000,000 Dade County, FL Seaport G.O.'s, 6.25% due 10/1/2021 Aaa/AAA 1,030,420
2,000,000 Dade County Health Facilities Authority, FL Hospital Rev. (Baptist Hospital
of Miami Project), 5.25% due 5/15/2021 Aaa/AAA 1,826,700
1,000,000 Dunes Community Development District, FL Rev. (Intracoastal Waterway Bridge Project),
7% due 2/1/2007 NR/A 1,056,540
1,000,000 Florida Housing Finance Agency (General Mortgage Rev.), 6.35% due 6/1/2014 NR/AAA 1,020,140
1,000,000 Florida Housing Finance Agency Rev. (Single Family Mortgage), 6.55% due 7/1/2014* Aa/AAA 1,026,300
1,000,000 Florida State Board of Education Public Education Capital Outlay, 6.75% due 6/1/2021 Aa/AA 1,116,560
1,000,000 Florida State Department of Natural Resources Rev. (Save Our Coast),
7.35% due 7/1/2008 Aaa/AAA 1,045,700
1,000,000 Florida State Municipal Power Agency Rev. (St. Lucie Project), 5.50% due 10/1/2012 Aaa/AAA 972,030
2,500,000 Florida State Turnpike Authority Turnpike Rev., 5 5/8% due 7/1/2025 Aaa/AAA 2,441,500
1,500,000 Gainesville, FL Utilities System Rev., 5.50% due 10/1/2013 Aa/AA 1,455,000
2,500,000 Hillsborough County, FL Aviation Authority Rev. (Tampa International Airport),
5 3/8% due 10/1/2023* Aaa/AAA 2,329,225
1,000,000 Hollywood, FL Water & Sewer Rev., 6 7/8% due 10/1/2021 Aaa/AAA 1,135,670
1,050,000 Jacksonville Beach, FL Utilities Rev., 7.50% due 10/1/2014 Aaa/AAA 1,108,391
1,500,000 Jacksonville Electric Authority, FL Rev. (St. Johns River Power Park System),
5.50% due 10/1/2013 Aa1/AA 1,456,620
2,000,000 Kissimmee Utility Authority, FL Electric System Improvement Rev.,
5.25% due 10/1/2018 Aaa/AAA 1,856,440
1,000,000 Lee County, FL Transportation Facilities Rev., 6% due 10/1/2015 Aaa/AAA 1,010,650
1,000,000 Naples, FL Hospital Rev. (Naples Community Hospital, Inc. Project), 7% due 10/1/2013 Aaa/AAA 1,050,720
1,000,000 Orange County Health Facilities Authority, FL Rev. (Orlando Regional Medical Center),
6.80% due 10/1/2015 Aaa/AAA 1,072,120
2,000,000 Orlando, FL Utilities Commission Water & Electric Rev., 5.50% due 10/1/2026 Aa/AA- 1,884,020
1,000,000 Orlando-Orange County Expressway Authority, FL Expressway Rev., 7.50% due 7/1/2016 Aaa/AAA 1,046,790
1,000,000 Osceola County, FL Transportation Rev. (Osceola Parkway Project), 6.10% due 4/1/2017 Aaa/AAA 1,012,550
1,200,000 Palm Beach County, FL Criminal Justice Facilities Rev., 7.25% due 6/1/2011 Aaa/AAA 1,362,492
1,500,000 Palm Beach County, FL Water & Sewer Rev., 7 1/8% due 10/1/2009 A1/A+ 1,570,740
1,625,000 Palm Beach County, FL Water & Sewer Rev., 5.25% due 10/1/2013 Aaa/AAA 1,536,340
1,000,000 Pensacola Health Facilities Authority, FL Health Facilities Rev. (Daughters of Charity
National Health System--Sacred Heart Hospital of Pensacola), 5.25% due 1/1/2011 Aa/NR 930,350
1,000,000 St. Lucie County, FL Utility System Rev., 7 1/8% due 10/1/2017 Aaa/AAA 1,137,310
1,250,000 Volusia County, FL Educational Facilities Authority Rev. (Embry-Riddle Aeronautical
University Project), 6 5/8% due 10/15/2022 NR/AAA 1,319,025
-----------
Total Municipal Bonds (Cost $46,771,044)--96.8% 48,057,113
Variable Rate Demand Notes (Cost $500,000)--1.0% 500,000
Other Assets Less Liabilities--2.2% 1,075,778
-----------
NET ASSETS--100.0% $49,632,891
* Interest income earned from this security is subject to the federal alternative minimum tax. ===========
Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
<CAPTION>
NORTH CAROLINA SERIES
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
------ --------------- ------------ -----------
<C> <S> <C> <C>
1,250,000 Appalachian State University, NC Housing & Student Center System Rev.,
5 5/8% due 7/15/2015 Aaa/AAA $1,221,450
600,000 Buncombe County, NC Metropolitan Sewerage District (Sewerage System Rev.),
5.50% due 7/1/2022 Aaa/AAA 574,842
2,000,000 Charlotte-Mecklenburg Hospital Authority, NC Health Care System Rev.,
6.25% due 1/1/2020 Aa/AA 2,018,980
1,000,000 Charlotte, NC Certificates of Participation (Charlotte-Mecklenburg Law Enforcement
Center Project), 5 3/8% due 6/1/2013 Aa1/AA 961,860
2,000,000 Charlotte, NC Water & Sewer G.O.'s, 5.90% due 2/1/2017 Aaa/AAA 2,051,300
1,590,000 Concord, NC Utilities System Rev., 5.75% due 12/1/2017 Aaa/AAA 1,574,116
500,000 Cumberland County, NC Hospital Facility Rev. (Cumberland County Hospital
System, Inc.), 6% due 10/1/2021 Aaa/AAA 498,040
2,000,000 Fayetteville, NC Public Works Commission Rev., 4.75% due 3/1/2014 Aaa/AAA 1,739,540
2,500,000 Martin County Industrial Facilities and Pollution Control Financing Authority, NC
(Weyerhaeuser Company Project), 5.65% due 12/1/2023* A2/A 2,305,200
1,000,000 North Carolina Eastern Municipal Power Agency Power System Rev., 5% due 1/1/2021 Aaa/BBB+ 892,100
500,000 North Carolina Educational Facilities Financing Authority Rev. (Duke University Project),
6.75% due 10/1/2021 Aa1/AA 534,830
500,000 North Carolina Educational Facilities Financing Authority Rev. (Elon College Project),
6 3/8% due 1/1/2014 NR/AAA 515,940
600,000 North Carolina Housing Finance Agency Rev. (Multi-Family), 5.80% due 7/1/2014 Aa/AA 574,812
1,500,000 North Carolina Housing Finance Agency Rev. (Single Family), 6.50% due 3/1/2018 Aa/A+ 1,542,750
250,000 North Carolina Housing Finance Agency Rev. (Multi-Family), 5.90% due 7/1/2026 Aa/AA 237,750
750,000 North Carolina Medical Care Commission Hospital Rev. (North Carolina Baptist
Hospital Project), 6 3/8% due 6/1/2014 Aa/AA- 771,263
1,000,000 North Carolina Medical Care Commission Hospital Rev. (Mercy Hospital Project),
6.50% due 8/1/2015 NR/A- 1,016,670
1,250,000 North Carolina Medical Care Commission Hospital Rev. (Rex Hospital Project),
6.25% due 6/1/2017 A1/A+ 1,299,500
1,500,000 North Carolina Medical Care Commission Hospital Rev. (Carolina Medicorp Project),
6% due 5/1/2021 Aa/AA 1,495,995
1,000,000 North Carolina Medical Care Commission Hospital Rev. (Memorial Mission Hospital
Project), 6% due 10/1/2022 Aaa/AAA 996,020
2,250,000 North Carolina Medical Care Commission Hospital Rev. (Presbyterian Health Services
Corp. Project), 6% due 10/1/2024 Aa/AA 2,228,580
2,000,000 North Carolina Municipal Power Agency No. 1 Catawba Electric Rev., 5% due 1/1/2018 Aaa/AAA 1,762,600
3,000,000 North Carolina Municipal Power Agency No. 1 Catawba Electric Rev., 5% due 1/1/2020 Aaa/AAA 2,682,120
1,000,000 Orange, NC Water & Sewer Authority Rev., 5.20% due 7/1/2016 Aa/AA 930,310
250,000 Piedmont Triad Airport Authority, NC Airport Rev. Series "A," 6.75% due 7/1/2016 Aaa/AAA 269,042
775,000 Raleigh, NC G.O.'s, 6.50% due 3/1/2008 Aaa/AAA 838,356
200,000 Transylvania County, NC G.O.'s, 6.80% due 4/1/2007 A/A 218,324
500,000 University of North Carolina Chapel Hill Housing System Rev., 6.40% due 11/1/2010 NR/AA- 529,365
500,000 University of North Carolina Hospitals at Chapel Hill Rev., 6 3/8% due 2/15/2017 A1/AA- 519,150
1,550,000 Wake County Industrial Facilities & Pollution Control Financing Authority, NC
(Carolina Power & Light), 6.90% due 4/1/2009 A2/A1 1,670,141
1,500,000 Wake County, NC Hospital System Rev. (Wake Medical Center), 5 1/8% due 10/1/2026 Aaa/AAA 1,331,550
500,000 Wayne County, NC G.O.'s, 5.90% due 2/1/2009 A/A+ 520,630
1,440,000 Wilkes County, NC G.O.'s, 5.30% due 6/1/2007 A/A 1,443,614
-----------
Total Municipal Bonds (Cost $37,370,897)--97.6% 37,766,740
Variable Rate Demand Notes (Cost $500,000)--1.3% 500,000
Other Assets Less Liabilities--1.1% 436,162
-----------
NET ASSETS--100.0% $38,702,902
===========
* Interest income earned from this security is subject to the federal alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statements of Assets and Liabilities September 30, 1995
<CAPTION>
California California North
High-Yield Quality Florida Carolina
Series Series Series Series
----------- ----------- ----------- -----------
Assets:
<S> <C> <C> <C> <C>
Investments, at value (see portfolios of investments):
Long-term holdings $46,437,481 $94,243,330 $48,057,113 $37,766,740
Short-term holdings 5,300,000 300,000 500,000 500,000
----------- ----------- ----------- -----------
51,737,481 94,543,330 48,557,113 38,266,740
Cash 70,293 145,213 65,678 53,168
Interest receivable 890,243 1,351,681 1,168,113 669,582
Receivable for Shares of Beneficial Interest sold 324,150 2,882 52,397 984
Expenses prepaid to shareholder service agent 19,954 38,052 19,693 22,151
Other -- 3,683 -- 1,521
----------- ----------- ----------- -----------
Total Assets 53,042,121 96,084,841 49,862,994 39,014,146
----------- ----------- ----------- -----------
Liabilities:
Dividends payable 101,114 168,241 85,866 64,328
Payable for Shares of Beneficial Interest repurchased 80,664 -- 62,567 188,545
Accrued expenses, taxes, and other 79,032 107,045 81,670 58,371
----------- ----------- ----------- -----------
Total Liabilities 260,810 275,286 230,103 311,244
----------- ----------- ----------- -----------
Net Assets $52,781,311 $95,809,555 $49,632,891 $38,702,902
=========== =========== =========== ===========
Composition of Net Assets:
Shares of Beneficial Interest, at par:
Class A $ 7,962 $ 14,285 $6,362 $4,839
Class D 197 130 78 162
Additional paid-in capital 50,819,382 94,151,974 48,046,264 38,235,553
Undistributed/accumulated net realized gain (loss) 79,763 (40,110) 294,118 66,505
Net unrealized appreciation of investments 1,874,007 1,683,276 1,286,069 395,843
----------- ----------- ----------- -----------
Net Assets $52,781,311 $95,809,555 $49,632,891 $38,702,902
=========== =========== =========== ===========
Net Assets:
Class A $51,504,554 $94,946,861 $49,029,496 $37,446,269
Class D $ 1,276,757 $ 862,694 $ 603,395 $ 1,256,633
Shares of Beneficial Interest outstanding (Unlimited
shares authorized, except Florida Series 20,000,000
shares authorized; $.001 par value):
Class A 7,962,130 14,285,339 6,361,677 4,838,689
Class D 197,165 130,027 78,171 162,457
Net Asset Value per share:
Class A $6.47 $6.65 $7.71 $7.74
Class D $6.48 $6.63 $7.72 $7.74
- ----------------
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statements of Operations For the year ended September 30, 1995
<CAPTION>
California California North
High-Yield Quality Florida Carolina
Series Series Series Series
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Investment income:
Interest $3,250,691 $6,033,338 $3,002,407 $2,385,611
---------- ---------- ---------- ----------
Expenses:
Management fees 241,396 483,174 94,276 55,938
Shareholder account services 72,646 134,036 75,022 94,761
Distribution and service fees 53,370 100,684 119,281 105,492
Auditing and legal fees 25,202 25,215 26,390 28,217
Custody and related services 21,208 97,901 18,151 27,960
Shareholder reports and communications 9,317 7,820 7,458 6,758
Trustees' fees and expenses 7,984 8,115 7,298 7,153
Registration 5,363 6,697 4,099 5,697
Miscellaneous 6,985 8,704 6,769 4,217
---------- ---------- ---------- ----------
Total expenses 443,471 872,346 358,744 336,193
---------- ---------- ---------- ----------
Net investment income 2,807,220 5,160,992 2,643,663 2,049,418
---------- ---------- ---------- ----------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss) on investments 88,139 (40,110) 295,392 67,083
Net change in unrealized appreciation/
depreciation of investments 1,121,392 4,529,579 2,057,465 2,320,714
---------- ---------- ---------- ----------
Net gain on investments 1,209,531 4,489,469 2,352,857 2,387,797
---------- ---------- ---------- ----------
Increase in net assets from operations $4,016,751 $9,650,461 $4,996,520 $4,437,215
========== ========== ========== ==========
- -----------------
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
California High-Yield California Quality
Series Series
----------------------------- -----------------------------
Year ended September 30 Year ended September 30
----------------------------- -----------------------------
1995 1994 1995 1994
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 2,807,220 $ 2,855,053 $ 5,160,992 $ 5,537,990
Net realized gain (loss) on investments 88,139 296,724 (40,110) 1,699,245
Net change in unrealized appreciation/depreciation
of investments 1,121,392 (2,966,240) 4,529,579 (13,151,970)
----------- ----------- ----------- ------------
Increase (decrease) in net assets from operations 4,016,751 185,537 9,650,461 (5,914,735)
----------- ----------- ----------- ------------
Distributions to shareholders:
Net investment income:
Class A (2,768,632) (2,841,218) (5,122,722) (5,523,434)
Class D (38,588) (13,835) (38,270) (14,556)
Net realized gain on investments:
Class A -- (651,601) (893,986) (2,473,637)
Class D -- -- (7,846) --
----------- ----------- ----------- ------------
Decrease in net assets from distributions (2,807,220) (3,506,654) (6,062,824) (8,011,627)
----------- ----------- ----------- ------------
Transactions in Shares of Beneficial Interest:*
Net proceeds from sale of shares:
Class A 6,943,019 3,186,756 3,791,860 8,288,928
Class D 707,886 702,222 336,722 742,183
Shares issued in payment of dividends:
Class A 1,388,517 1,419,731 2,556,436 2,772,508
Class D 29,049 9,395 16,286 5,784
Exchanged from associated Funds:
Class A 2,554,338 459,044 1,674,871 2,025,609
Class D 9,444 2,892 36,700 110,731
Shares issued in payment of gain distributions:
Class A -- 441,866 588,709 1,645,620
Class D -- -- 3,308 --
----------- ----------- ----------- ------------
Total 11,632,253 6,221,906 9,004,892 15,591,363
----------- ----------- ----------- -----------
Cost of shares repurchased:
Class A (6,675,164) (5,032,468) (12,989,249) (10,846,020)
Class D (12,518) (46,242) (274,505) (16,784)
Exchanged into associated Funds:
Class A (1,900,990) (380,165) (3,245,114) (2,700,925)
Class D (128,605) (2,902) (105,836) (2,000)
----------- ----------- ----------- ------------
Total (8,717,277) (5,461,777) (16,614,704) (13,565,729)
----------- ----------- ---------- ------------
Increase (decrease) in net assets from transactions
in Shares of Beneficial Interest 2,914,976 760,129 (7,609,812) 2,025,634
----------- ----------- ----------- ------------
Increase (decrease) in net assets 4,124,507 (2,560,988) (4,022,175) (11,900,728)
Net Assets:
Beginning of year 48,656,804 51,217,792 99,831,730 111,732,458
----------- ----------- ----------- ------------
End of year $52,781,311 $48,656,804 $95,809,555 $ 99,831,730
=========== =========== ============ ============
<PAGE>
<CAPTION>
North Carolina
Florida Series Series
----------------------------- ------------------------------
Year ended September 30 Year ended September 30
----------------------------- ------------------------------
1995 1994 1995 1994
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 2,643,663 $ 2,878,001 $ 2,049,418 $ 2,159,442
Net realized gain (loss) on investments 295,392 200,813 67,083 270,319
Net change in unrealized appreciation/depreciation
of investments 2,057,465 (5,275,433) 2,320,714 (4,951,199)
----------- ----------- ----------- -----------
Increase (decrease) in net assets from operations 4,996,520 (2,196,619) 4,437,215 (2,521,438)
----------- ----------- ----------- -----------
Distributions to shareholders:
Net investment income:
Class A (2,625,734) (2,874,294) (1,991,128) (2,133,632)
Class D (17,929) (3,707) (58,290) (25,810)
Net realized gain on investments:
Class A (13,355) (813,447) (67,575) (239,782)
Class D (68) -- (2,384) --
----------- ----------- ----------- -----------
Decrease in net assets from distributions (2,657,086) (3,691,448) (2,119,377) (2,399,224)
----------- ----------- ----------- -----------
Transactions in Shares of Beneficial Interest:*
Net proceeds from sale of shares:
Class A 2,612,961 5,761,739 3,259,927 7,080,082
Class D 463,188 252,386 514,321 1,346,158
Shares issued in payment of dividends:
Class A 1,095,007 1,194,799 1,126,718 1,263,936
Class D 10,660 2,701 34,388 8,781
Exchanged from associated Funds:
Class A 1,500,260 1,958,021 1,065,941 748,851
Class D 334,150 -- 583,255 --
Shares issued in payment of gain distributions:
Class A 7,441 425,883 51,235 179,478
Class D 60 -- 2,322 --
----------- ----------- ----------- -----------
Total 6,023,727 9,595,529 6,638,107 10,627,286
----------- ----------- ----------- -----------
Cost of shares repurchased:
Class A (7,404,963) (5,704,776) (7,888,154) (3,909,952)
Class D (147,983) (5,020) (171,491) (1,959)
Exchanged into associated Funds:
Class A (998,971) (711,426) (1,326,399) (419,075)
Class D (319,464) -- (1,069,453) (1,267)
------------ ----------- ----------- ------------
Total (8,871,381) (6,421,222) (10,455,497) (4,332,253)
----------- ----------- ----------- -----------
Increase (decrease) in net assets from transactions
in Shares of Beneficial Interest (2,847,654) 3,174,307 (3,817,390) 6,295,033
----------- ----------- ----------- -----------
Increase (decrease) in net assets (508,220) (2,713,760) (1,499,552) 1,374,371
Net Assets:
Beginning of year 50,141,111 52,854,871 40,202,454 38,828,083
----------- ----------- ----------- -----------
End of year $49,632,891 $50,141,111 $38,702,902 $40,202,454
=========== =========== =========== ===========
- -----------------
*The Trust began offering Class D shares on February 1, 1994.
See notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
1. Seligman Tax-Exempt Series Trust (the "Trust") consists of four separate
series: the "California High-Yield Series," the "California Quality
Series," the "Florida Series," and the "North Carolina Series." Each Series
of the Trust offers two classes of shares. All shares existing prior to
February 1, 1994, were classified as Class A shares. Class A shares are
sold with an initial sales charge of up to 4.75% and a continuing service
fee of up to 0.25% on an annual basis. Class D shares are sold without an
initial sales charge but are subject to a higher distribution fee and a
contingent deferred sales load ("CDSL") of 1% imposed on certain
redemptions made within one year of purchase. The two classes of shares for
each Series represent interests in the same portfolio of investments, have
the same rights and are generally identical in all respects except that
each class bears its separate distribution and certain class expenses and
has exclusive voting rights with respect to any matter to which a separate
vote of any class is required.
2. Significant accounting policies followed, all in conformity with
generally accepted accounting principles, are given below:
a. All tax-exempt securities and other short-term holdings maturing in more
than 60 days are valued based upon quotations provided by an independent
pricing service or, in their absence, at fair value determined in
accordance with procedures approved by the Trustees. Short-term holdings
maturing in 60 days or less are generally valued at amortized cost.
b. There is no provision for federal income or excise tax. Each Series has
elected to be taxed as a regulated investment company and intends to
distribute substantially all taxable net income and net gain realized.
Dividends are declared daily and paid monthly.
c. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income
tax purposes. Interest income is recorded on the accrual basis. The
Trust amortizes original issue discounts and premiums paid on purchases
of portfolio securities. Discounts other than original issue discounts
are not amortized.
d. All income, expenses (other than class-specific expenses), and realized
and unrealized gains or losses are allocated daily to each class of
shares based upon the relative value of the shares of each class. Class-
specific expenses, which include distribution and service fees and any
other items that can be specifically attributed to a particular class,
are charged directly to such class.
e. The treatment for financial statement purposes of distributions made
during the year from net investment income or net realized gains may
differ from their ultimate treatment for federal income tax purposes.
These differences are caused primarily by differences in the timing of
the recognition of certain components of income, expense, and capital
gain for federal income tax purposes. Where such differences are
permanent in nature, they are reclassified in the components of net
assets based on their ultimate characterization for federal income tax
purposes. Any such reclassifications will have no effect on net assets,
results of operations, or net asset value per share of any Series of the
Trust.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the year ended September 30, 1995, were as follows:
Series Purchases Sales
------ ----------- -----------
California High-Yield $ 8,114,668 $ 8,718,821
California Quality 10,743,235 19,929,752
Florida 5,607,565 8,373,867
North Carolina 1,678,668 5,455,081
At September 30, 1995, the cost of investments for federal income tax
purposes was $49,923,360, $93,083,794, $48,557,113, and $38,266,740,
respectively, for the California High-Yield, California Quality, Florida
and North Carolina Series, and the tax basis gross unrealized appreciation
and depreciation of portfolio securities were as follows:
Total Total
Unrealized Unrealized
Series Appreciation Depreciation
------ ------------ ------------
California High-Yield $2,153,643 $ 339,522
California Quality 3,694,304 2,234,768
Florida 1,921,697 635,628
North Carolina 1,138,842 742,999
4. J. & W. Seligman & Co. Incorporated (the "Manager") manages the affairs
of the Trust and provides the necessary personnel and facilities.
Compensation of all officers of the Trust, all trustees of the Trust who
are employees or consultants of the Manager, and all personnel of the Trust
and the Manager is paid by the Manager. The Manager's fee is calculated
daily and payable monthly, equal to 0.50% per annum of each Series' average
daily net assets. For the year ended September 30, 1995, the Manager, at
its discretion, waived a portion of its fees for the Florida and North
Carolina Series equal to $151,047 and $141,479, respectively. The
management fee reflected in the Statements of Operations represent 0.19%
and 0.14%, respectively, per annum of their average net assets.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of each Series' shares and an affiliate of the Manager,
received the following concessions after commissions were paid to dealers
for sale of Class A shares:
Distributor Dealer
Series Concessions Commissions
------ ----------- -----------
California High-Yield $12,307 $ 91,517
California Quality 16,713 120,277
Florida 12,397 93,763
North Carolina 15,113 115,498
The Trust has an Administration, Shareholder Services and Distribution
Plan (the "Plan") with respect to Class A shares under which service
organizations can enter into agreements with the Distributor and receive
continuing fees of up to 0.25% on an annual basis, payable quarterly, of
the average daily net assets of the Class A shares attributable to the
particular service organizations for providing personal services and/or the
maintenance of shareholder accounts. The Distributor charges such fees to
the Trust pursuant to the Plan. For the year ended September 30, 1995, for
the California High-Yield, California Quality, Florida, and North Carolina
Series, fees paid aggregated $45,340, $91,898, $115,228, and $92,244,
respectively, or 0.10%, 0.10%, 0.24%, and 0.24%, respectively, per annum of
average daily net assets.
The Trust has a Plan with respect to Class D shares under which service
organizations can enter into agreements with the Distributor and receive
continuing fees for providing personal services and/or the maintenance of
shareholder accounts of up to 0.25% on an annual basis of the average daily
net assets of the Class D shares for which the organizations are
responsible, and fees for providing other distribution assistance of up to
0.75% on an annual basis of such average daily net assets. Such fees are
paid monthly by the Trust to the Distributor pursuant to the Plan. For the
year ended September 30, 1995, fees paid amounted to $8,030, $8,786,
$4,053, and $13,248, or 1% per annum of the average daily net assets of
Class D shares of the California High-Yield, California Quality, Florida,
and North Carolina Series, respectively.
The Distributor is entitled to retain any CDSL imposed on certain
redemptions of Class D shares occurring within one year of purchase. For
the year ended September 30, 1995, such charges amounted to $288 for the
California High-Yield Series, $399 for the California Quality Series, $189
for the Florida Series, and $276 for the North Carolina Series.
Effective April 1, 1995, Seligman Services, Inc., an affiliate of the
Manager, became eligible to receive commissions from certain sales of Fund
shares, as well as distribution and service fees pursuant to the Plan. For
the period ended September 30, 1995, Seligman Services, Inc. received
commissions of $798 from sales of shares of the Trust. Seligman Services,
Inc. also received distribution and service fees of $4,574, pursuant to the
Plan.
Seligman Data Corp., which is owned by certain associated investment
companies, charged at cost for shareholder account services the following
amounts:
Series
------
California High-Yield $ 72,646
California Quality 134,036
Florida 75,022
North Carolina 94,761
Certain officers and trustees of the Trust are officers or directors of
the Manager, the Distributor, Seligman Services, Inc., and/or Seligman Data
Corp.
Fees of $23,000 were incurred by the Trust for the legal services of
Sullivan & Cromwell, a member of which firm is a trustee of the Trust.
The Trust has a compensation agreement under which trustees who receive
fees may elect to defer receiving such fees. Interest is accrued on the
deferred balances. Deferred fees and the related accrued interest are not
deductible for federal income tax purposes until such amounts are paid. The
cost of such fees and interest is included in trustees' fees and expenses,
and the accumulated balances thereof at September 30, 1995, were as
follows:
Series
------
California High-Yield $23,502
California Quality 23,502
Florida 10,630
North Carolina 7,207
5. Class-specific expenses charged to Class A and Class D during the year
ended September 30, 1995, which are included in the corresponding captions
of the Statements of Operations, were as follows:
<TABLE>
<CAPTION>
Shareholder
Distribution reports and
Series and service fees Registration communications
- ------ ---------------- ------------ --------------
<S> <C> <C> <C> <C>
California High-Yield: Class A $45,340 $1,034 $765
Class D 8,030 554 165
California Quality: Class A 91,898 1,328 1,026
Class D 8,786 517 207
Florida: Class A 115,228 988 364
Class D 4,053 393 18
North Carolina: Class A 92,244 1,534 579
Class D 13,248 865 363
</TABLE>
<PAGE>
6. Transactions in Shares of Beneficial Interest were as follows:*
<TABLE>
<CAPTION>
California High-Yield Series California Quality Series
---------------------------- ---------------------------
Year ended September 30 Year ended September 30
---------------------------- ---------------------------
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Sale of shares:
Class A 1,079,685 487,989 590,593 1,210,817
Class D 110,995 108,907 53,458 112,971
Shares issued in payment of dividends:
Class A 219,618 218,487 397,979 409,496
Class D 4,570 1,471 2,531 887
Exchanged from associated Funds:
Class A 404,353 70,262 265,696 294,395
Class D 1,488 452 5,830 16,307
Shares issued in payment
of gain distributions:
Class A -- 66,949 100,634 234,753
Class D -- -- 566 --
--------- --------- --------- ---------
Total 1,820,709 954,517 1,417,287 2,279,626
--------- --------- --------- ---------
Shares repurchased:
Class A (1,056,589) (772,412) (2,039,599) (1,614,125)
Class D (1,935) (7,290) (42,182) (2,585)
Exchanged into associated Funds:
Class A (302,366) (58,674) (513,872) (400,621)
Class D (21,039) (454) (17,443) (313)
--------- --------- --------- ---------
Total (1,381,929) (838,830) (2,613,096) (2,017,644)
--------- --------- ---------- ---------
Increase (decrease) in shares 438,780 115,687 (1,195,809) 261,982
========= ========= ========= =========
<PAGE>
<CAPTION>
Note 6. (continued)
Florida Series North Carolina Series
--------------------------- ---------------------------
Year ended September 30 Year ended September 30
--------------------------- ---------------------------
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Sale of shares:
Class A 347,578 734,617 438,845 892,418
Class D 60,844 33,552 72,260 175,027
Shares issued in payment of dividends:
Class A 146,628 154,793 151,286 163,227
Class D 1,419 362 4,585 1,170
Exchanged from associated Funds:
Class A 199,964 252,598 147,787 95,126
Class D 43,212 -- 82,219 --
Shares issued in payment
of gain distributions:
Class A 1,075 53,369 7,647 22,323
Class D 9 -- 347 --
--------- --------- --------- ---------
Total 800,729 1,229,291 904,976 1,349,291
--------- --------- --------- ---------
Shares repurchased:
Class A (999,949) (744,532) (1,057,443) (508,245)
Class D (19,405) (672) (22,493) (262)
Exchanged into associated Funds:
Class A (135,404) (92,862) (183,108) (54,138)
Class D (41,150) -- (150,222) (174)
--------- --------- --------- ---------
Total (1,195,908) (838,066) (1,413,266) (562,819)
--------- --------- --------- ---------
Increase (decrease) in shares (395,179) 391,225 (508,290) 786,472
========= ========= ========= =========
- ------------------------
*The Trust began offering Class D shares on February 1, 1994.
</TABLE>
<PAGE>
Financial Highlights
The Trust's financial highlights are presented below. The per share
operating performance data is designed to allow investors to trace the
operating performance, on a per share basis, from a Series' beginning net
asset value to the ending net asset value so that they can understand what
effect the individual items have on their investment assuming it was held
throughout the period. Generally, the per share amounts are derived by
converting the actual dollar amounts incurred foreach item as disclosed in
the financial statements to their equivalent per share amounts using
average shares outstanding.
The total return based on net asset value measures a Series' performance
assuming investors purchased shares at net asset value as of the beginning
of the period, reinvested dividends and capital gains paid at net asset
value, and then sold their shares at the net asset value per share on the
last day of the period. The total return computations do not reflect any
sales charges investors may incur in purchasing or selling shares of the
Trust. The total returns for periods of less than one year are not
annualized.
<TABLE>
<CAPTION>
Per Share Operating Performance:
Net Increase
Net Asset Realized & (Decrease) Distributions Net Increase
Value at Net Unrealized from Dividends from (Decrease) in
Fiscal Year Beginning Investment Investment Investment Paid or Net Gain Net Asset
or Period of Period Income* Gain (Loss) Operations Declared Realized Value
Class A:
<S> <C> <C> <C> <C> <C> <C> <C>
California High-Yield Series
Year ended 9/30/95 $6.30 $0.37 $0.17 $0.54 ($0.37) -- $0.17
Year ended 9/30/94 6.73 0.37 (0.34) 0.03 (0.37) (0.09) (0.43)
Year ended 9/30/93 6.65 0.39 0.28 0.67 (0.39) (0.20) 0.08
Year ended 9/30/92 6.50 0.41 0.16 0.57 (0.41) (0.01) 0.15
Year ended 9/30/91 6.18 0.42 0.33 0.75 (0.42) (0.01) 0.32
California Quality Series
Year ended 9/30/95 6.39 0.34 0.32 0.66 (0.34) (0.06) 0.26
Year ended 9/30/94 7.28 0.35 (0.73) (0.38) (0.35) (0.16) (0.89)
Year ended 9/30/93 6.85 0.37 0.54 0.91 (0.37) (0.11) 0.43
Year ended 9/30/92 6.65 0.40 0.22 0.62 (0.40) (0.02) 0.20
Year ended 9/30/91 6.22 0.40 0.46 0.86 (0.40) (0.03) 0.43
Florida Series
Year ended 9/30/95 7.34 0.40 0.37 0.77 (0.40) -- 0.37
Year ended 9/30/94 8.20 0.42 (0.74) (0.32) (0.42) (0.12) (0.86)
Year ended 9/30/93 7.56 0.46 0.65 1.11 (0.46) (0.01) 0.64
Year ended 9/30/92 7.37 0.47 0.19 0.66 (0.47) -- 0.19
Year ended 9/30/91 6.90 0.43 0.47 0.90 (0.43) -- 0.47
North Carolina Series
Year ended 9/30/95 7.30 0.39 0.45 0.84 (0.39) (0.01) 0.44
Year ended 9/30/94 8.22 0.41 (0.87) (0.46) (0.41) (0.05) (0.92)
Year ended 9/30/93 7.61 0.43 0.63 1.06 (0.43) (0.02) 0.61
Year ended 9/30/92 7.39 0.44 0.22 0.66 (0.44) -- 0.22
Year ended 9/30/91 7.04 0.45 0.35 0.80 (0.45) -- 0.35
Class D:
California High-Yield Series
Year ended 9/30/95 6.31 0.31 0.17 0.48 (0.31) -- 0.17
2/1/94**--9/30/94 6.67 0.21 (0.36) (0.15) (0.21) -- (0.36)
California Quality Series
Year ended 9/30/95 6.38 0.28 0.31 0.59 (0.28) (0.06) 0.25
2/1/94**--9/30/94 7.13 0.19 (0.75) (0.56) (0.19) -- (0.75)
Florida Series
Year ended 9/30/95 7.34 0.34 0.38 0.72 (0.34) -- 0.38
2/1/94**--9/30/94 8.10 0.24 (0.76) (0.52) (0.24) -- (0.76)
North Carolina Series
Year ended 9/30/95 7.29 0.33 0.46 0.79 (0.33) (0.01) 0.45
2/1/94**--9/30/94 8.17 0.23 (0.88) (0.65) (0.23) -- (0.88)
<PAGE>
<CAPTION>
Ratio of Net
Net Asset Total Return Ratio of Investment Net Assets
Value at Based on Expenses to Income at End of
Fiscal Year End Net Asset Average to Average Portfolio Period
or Period of Period Value Net Assets* Net Assets* Turnover (000's omitted)
Class A:
<S> <C> <C> <C> <C> <C> <C>
California High-Yield Series
Year ended 9/30/95 $6.47 8.85% 0.90% 5.84% 17.64% $51,504
Year ended 9/30/94 6.30 0.41 0.85 5.74 8.36 48,007
Year ended 9/30/93 6.73 10.66 0.88 5.94 7.70 51,218
Year ended 9/30/92 6.65 9.00 0.82 6.20 45.50 49,448
Year ended 9/30/91 6.50 12.53 0.83 6.67 5.13 49,172
California Quality Series
Year ended 9/30/95 6.65 10.85 0.89 5.34 11.24 94,947
Year ended 9/30/94 6.39 (5.46) 0.81 5.20 22.16 99,020
Year ended 9/30/93 7.28 13.92 0.82 5.30 15.67 111,732
Year ended 9/30/92 6.85 9.56 0.78 5.86 34.25 93,557
Year ended 9/30/91 6.65 14.35 0.78 6.19 20.11 77,884
Florida Series
Year ended 9/30/95 7.71 10.87 0.72 5.38 11.82 49,030
Year ended 9/30/94 7.34 (3.99) 0.42 5.49 6.17 49,897
Year ended 9/30/93 8.20 15.21 0.23 5.82 16.42 52,855
Year ended 9/30/92 7.56 9.24 0.17 6.32 12.62 37,957
Year ended 9/30/91 7.37 13.41 0.90 6.00 -- 28,173
North Carolina Series
Year ended 9/30/95 7.74 11.92 0.82 5.21 4.38 37,446
Year ended 9/30/94 7.30 (5.80) 0.44 5.29 15.61 38,920
Year ended 9/30/93 8.22 14.46 0.23 5.44 3.13 38,828
Year ended 9/30/92 7.61 9.23 0.14 5.83 12.51 21,836
Year ended 9/30/91 7.39 11.97 0.07 6.10 -- 9,255
Class D:
California High-Yield Series
Year ended 9/30/95 6.48 7.78 1.91 4.84 17.64 1,277
2/1/94**--9/30/94 6.31 (2.47) 1.74+ 4.73+ 8.36++ 650
California Quality Series
Year ended 9/30/95 6.63 9.61 1.88 4.36 11.24 863
2/1/94**--9/30/94 6.38 (8.01) 1.77+ 4.39+ 22.16++ 812
Florida Series
Year ended 9/30/95 7.72 10.07 1.66 4.53 11.82 603
2/1/94**--9/30/94 7.34 (6.64) 1.29+ 4.61+ 6.17++ 244
North Carolina Series
Year ended 9/30/95 7.74 11.19 1.64 4.42 4.38 1,257
2/1/94**--9/30/94 7.29 (8.15) 1.27+ 4.49+ 15.61++ 1,282
<CAPTION>
Adjusted
Adjusted Ratio of
Adjusted Net Ratio of Net Investment
Investment Expenses to Income
Fiscal Year Income Average Net to Average
or Period per Share* Assets* Net Assets*
Class A:
<S> <C> <C> <C>
California High-Yield Series
Year ended 9/30/95
Year ended 9/30/94
Year ended 9/30/93
Year ended 9/30/92
Year ended 9/30/91
California Quality Series
Year ended 9/30/95
Year ended 9/30/94
Year ended 9/30/93
Year ended 9/30/92
Year ended 9/30/91
Florida Series
Year ended 9/30/95 $0.37 1.03% 5.07%
Year ended 9/30/94 0.38 1.00 4.91
Year ended 9/30/93 0.40 1.03 5.01
Year ended 9/30/92 0.41 1.02 5.47
Year ended 9/30/91 0.42 1.15 5.75
North Carolina Series
Year ended 9/30/95 0.36 1.18 4.85
Year ended 9/30/94 0.35 1.13 4.60
Year ended 9/30/93 0.35 1.22 4.45
Year ended 9/30/92 0.34 1.40 4.57
Year ended 9/30/91 0.22 3.22 2.96
Class D:
California High-Yield Series
Year ended 9/30/95
2/1/94**--9/30/94
California Quality Series
Year ended 9/30/95
2/1/94**--9/30/94
Florida Series
Year ended 9/30/95 0.31 1.97 4.22
2/1/94**--9/30/94 0.21 1.84+ 4.06+
North Carolina Series
Year ended 9/30/95 0.31 2.00 4.06
2/1/94**--9/30/94 0.20 1.95+ 3.82+
</TABLE>
*During the periods stated, the Manager, at its discretion, waived all or
a portion of its fees and, in some cases, reimbursed certain expenses for
the Florida and North Carolina Series. The adjusted net investment income
per share and adjusted ratios reflect what the results would have been
had the Manager not waived fees and reimbursed expenses.
**Commencement of operations.
+Annualized.
++For the year ended September 30, 1994.
See notes to financial statements.
<PAGE>
Report of Independent Auditors
The Trustees and Shareholders,
Seligman Tax-Exempt Series Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of the California High-Yield,
California Quality, Florida and North Carolina Series of Seligman Tax-
Exempt Series Trust as of September 30, 1995, the related statements of
operations for the year then ended and of changes in net assets for each of
the years in the two-year period then ended, and the financial highlights
for each of the periods presented. These financial statements and financial
highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 1995 by correspondence with the
Trust's custodian. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the California
High-Yield, California Quality, Florida and North Carolina Series of
Seligman Tax-Exempt Series Trust as of September 30, 1995, the results of
their operations, the changes in their net assets, and the financial
highlights for the respective stated periods, in conformity with generally
accepted accounting principles.
/s/ DELOITTE & TOUCHE LLP
- --------------------------
DELOITTE & TOUCHE LLP
New York, New York
November 3, 1995
<PAGE>
Trustees
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
John R. Galvin 2
Dean, Fletcher School of Law and Diplomacy at
Tufts University
Director, USLIFE Corporation
Alice S. Ilchman 3
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Director, NYNEX
Chairman, The Rockefeller Foundation
Frank A. McPherson 2
Chairman and CEO, Kerr-McGee Corporation
Director, Kimberly-Clark Corporation
Director, Baptist Medical Center
John E. Merow
Partner, Sullivan & Cromwell, Law Firm
Director, Commonwealth Aluminum Corporation
Betsy S. Michel 2
Director or Trustee,
Various Organizations
William C. Morris 1
Chairman
Chairman of the Board and President,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Daniel Industries, Inc.
Director, Kerr-McGee Corporation
James C. Pitney 3
Partner, Pitney, Hardin, Kipp & Szuch, Law Firm
Director, Public Service Enterprise Group
James Q. Riordan 3
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
Ronald T. Schroeder 1
Managing Director, J. & W. Seligman & Co. Incorporated
Robert L. Shafer 3
Vice President, Pfizer Inc.
Director, USLIFE Corporation
James N. Whitson 2
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, C-SPAN
Director, Red Man Pipe and Supply Company
Brian T. Zino 1
President
Managing Director, J. & W. Seligman & Co. Incorporated
- ---------------------
Member:
1 Executive Committee
2 Audit Committee
3 Trustee Nominating Committee
<PAGE>
Executive Officers
William C. Morris
Chairman
Brian T. Zino
President
Thomas G. Moles
Vice President
Lawrence P. Vogel
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
Manager
J. & W. Seligman & Co.
Incorporated
100 Park Avenue
New York, NY 10017
General Counsel
Sullivan & Cromwell
Independent Auditors
Deloitte & Touche LLP
General Distributor
Seligman Financial Services, Inc.
100 Park Avenue
New York, NY 10017
Shareholder Service Agent
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
Important Telephone Numbers
(800) 221-2450 Shareholder Services
(800) 622-4597 24-Hour Automated
Telephone
Access Service
<PAGE>
SELIGMAN FINANCIAL SERVICES, INC.
an affiliate of
(LOGO GOES HERE)
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 Park Avenue, New York, NY 10017
This report is intended only for the information of shareholders or those
who have received the offering prospectus covering shares of Beneficial
Interest of Seligman Tax-Exempt Series Trust, which contains information
about the sales charges, management fee, and other costs. Please read the
prospectus carefully before investing or sending money.
TEB2 9/95
