<PAGE>
ANNUAL LETTER
Dear Fellow Shareholders:
As you know, material has been circulated to you regarding The Board of
Trustee's determination that it was in the best interests of the Funds to
liquidate and distribute the Funds' assets to shareholders and then to dissolve
the Funds.
In view of these circumstances, each of the Funds has suspended sales of its
shares to new investors effective July 28, 1999. This suspension does not affect
the automatic reinvestment of dividends and other distributions.
Carnegie Capital Management Company has been pleased and proud to be
associated with the Carnegie Funds Group for the last 25 years. We will do
everything in our power to complete this transaction to your satisfaction and
wish you the very best continued investment success.
Please vote and sign your proxy as soon as possible.
Sincerely,
/s/ George R. Mateyo
George R. Mateyo
INDEPENDENT AUDITORS' REPORT
[LOGO]
To the Board of Trustees and Shareholders
Liquid Capital Income Trust, Carnegie Government Securities Trust,
Carnegie Tax Free Income Trust and Carnegie Tax Exempt Income Trust:
We have audited the accompanying statements of net assets of Liquid Capital
Income Trust, Carnegie Government Securities Trust, Carnegie Tax Free Income
Trust and Carnegie Tax Exempt Income Trust (comprising the Ohio General
Municipal Fund), as of July 31, 1999, and the related statements of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Trusts' 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 July
31, 1999, by correspondence with the custodian and brokers, and other
appropriate 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 the financial highlights
referred to above present fairly, in all material respects, the financial
position of Liquid Capital Income Trust, Carnegie Government Securities Trust,
Carnegie Tax Free Income Trust and Carnegie Tax Exempt Income Trust, as of July
31, 1999, 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 five years in the period then ended, in
conformity with generally accepted accounting principles.
/s/ KPMG LLP
August 27, 1999
Cleveland, Ohio
1
<PAGE>
LIQUID CAPITAL INCOME TRUST -- FINANCIAL HIGHLIGHTS
Data for each share outstanding throughout the period
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
-------------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.038 0.047 0.045 0.047 0.047
----------- ------------ ------------ ------------ ------------
Total from Investment
Operations 0.038 0.047 0.045 0.047 0.047
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.038) (0.047) (0.045) (0.047) (0.047)
----------- ------------ ------------ ------------ ------------
Total Distributions (0.038) (0.047) (0.045) (0.047) (0.047)
Net Asset Value, End of
Period $1.00 $1.00 $1.00 $1.00 $1.00
----------- ------------ ------------ ------------ ------------
----------- ------------ ------------ ------------ ------------
TOTAL RETURN 3.82% 4.79% 4.58% 4.79% 4.84%
RATIOS/SUPPLEMENTAL
INFORMATION
Expenses as a
percentage of average
daily net assets(1) 1.13% 0.88% 0.94% 0.90% 0.87%
Net investment income
as a percentage of
average daily net
assets(1) 4.03% 4.71% 4.48% 4.69% 4.72%
Net Assets at end of
period $34,794,136 $164,475,955 $185,185,738 $205,508,605 $247,385,884
----------- ------------ ------------ ------------ ------------
----------- ------------ ------------ ------------ ------------
</TABLE>
(1) The percentages should not be construed as representative of the yield or
expenses related to further investments in the Trust.
CARNEGIE GOVERNMENT SECURITIES TRUST -- FINANCIAL HIGHLIGHTS
Data for each share outstanding throughout the period
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
--------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.037 0.045 0.042 0.045 0.044
---------- ----------- ----------- ----------- -----------
Total from Investment
Operations 0.037 0.045 0.042 0.045 0.044
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.037) (0.045) (0.042) (0.045) (0.044)
---------- ----------- ----------- ----------- -----------
Total Distributions (0.037) (0.045) (0.042) (0.045) (0.044)
Net Asset Value, End of
Period $1.00 $1.00 $1.00 $1.00 $1.00
---------- ----------- ----------- ----------- -----------
---------- ----------- ----------- ----------- -----------
TOTAL RETURN 3.73% 4.66% 4.33% 4.58% 4.52%
RATIOS/SUPPLEMENTAL
INFORMATION
Expenses as a
percentage of average
daily net assets(1) 1.16% 0.98% 1.11% 1.03% 1.06%
Net investment income
as a percentage of
average daily net
assets(1) 3.91% 4.51% 4.25% 4.50% 4.38%
Net Assets at end of
period $3,490,559 $14,534,252 $12,440,409 $12,737,746 $14,424,876
---------- ----------- ----------- ----------- -----------
---------- ----------- ----------- ----------- -----------
</TABLE>
(1) The percentages should not be construed as representative of the yield or
expenses related to further investments in the Trust.
See Notes to Financial Statements.
2
<PAGE>
CARNEGIE TAX FREE INCOME TRUST -- FINANCIAL HIGHLIGHTS
Data for each share outstanding throughout the period
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
--------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.023 0.028 0.027 0.029 0.029
---------- ----------- ----------- ----------- -----------
Total from Investment
Operations 0.023 0.028 0.027 0.029 0.029
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.023) (0.028) (0.027) (0.029) (0.029)
---------- ----------- ----------- ----------- -----------
Total Distributions (0.023) (0.028) (0.027) (0.029) (0.029)
Net Asset Value, End of
Period $1.00 $1.00 $1.00 $1.00 $1.00
---------- ----------- ----------- ----------- -----------
---------- ----------- ----------- ----------- -----------
TOTAL RETURN 2.30% 2.81% 2.79% 2.96% 2.92%
RATIOS/SUPPLEMENTAL
INFORMATION
Expenses as a
percentage of average
daily net assets(1) 0.83% 0.90% 0.84% 0.80% 0.82%
Net investment income
as a percentage of
average daily net
assets(1) 2.37% 2.78% 2.74% 2.92% 2.86%
Net Assets at end of
period $7,614,006 $21,805,702 $20,188,763 $25,266,098 $27,615,905
---------- ----------- ----------- ----------- -----------
---------- ----------- ----------- ----------- -----------
</TABLE>
(1) The percentages should not be construed as representative of the yield or
expenses related to further investments in the Trust.
CARNEGIE TAX EXEMPT INCOME TRUST -- OHIO GENERAL MUNICIPAL FUND
FINANCIAL HIGHLIGHTS -- Data for each share outstanding throughout the period
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
-------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.64 $9.66 $9.41 $9.46 $9.50
INCOME FROM INVESTMENT
OPERATIONS:
Net investment
income(2) 0.459 0.477 0.484 0.514 0.556
Net realized and
unrealized
gains/(losses) on
securities (0.256) (0.019) 0.250 (0.050) (0.040)
---------- ---------- ----------- ----------- -----------
Total from Investment
Operations 0.203 0.458 0.734 0.464 0.516
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.459) (0.477) (0.484) (0.514) (0.556)
---------- ---------- ----------- ----------- -----------
Total Distributions (0.459) (0.477) (0.484) (0.514) (0.556)
Net Asset Value, End of
Period $9.38 $9.64 $9.66 $9.41 $9.46
---------- ---------- ----------- ----------- -----------
---------- ---------- ----------- ----------- -----------
TOTAL RETURN 2.03% 4.84% 9.41% 4.98% 5.50%
---------- ---------- ----------- ----------- -----------
---------- ---------- ----------- ----------- -----------
RATIOS/SUPPLEMENTAL
INFORMATION
Net assets at end of
period $8,544,649 $9,220,496 $10,283,205 $11,655,988 $11,448,521
Expenses as a
percentage of average
daily net
assets(1)(2) 0.94% 1.00% 0.95% 0.88% 0.97%
Net investment income
as a percentage of
average daily net
assets(1) 4.76% 4.96% 5.12% 5.41% 5.95%
Portfolio Turnover rate 50.39% 5.36% 3.88% 23.45% 8.77%
</TABLE>
(1) The percentages should not be construed as representative of the yield or
expenses related to further investments in the Fund.
(2) During the periods indicated, the Fund did not make payments or made
partial payments under their Distribution Expenses Plan and CCMC waived
management fees. Net investment income for the Ohio General Municipal Fund
would have been $.430, $.448, $.455, $.483, and $.528, for the years ended
July 31, 1999, 1998, 1997, 1996 and 1995, respectively; had such
Distribution Expense Plan payments been made and had such fees not been
waived. Expenses as a percentage of average net assets would have been
1.24%, 1.30%, 1.25%, 1.18%, and 1.27%, for the same periods, respectively.
See Notes to Financial Statements.
3
<PAGE>
LIQUID CAPITAL INCOME TRUST
STATEMENT OF NET ASSETS
JULY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MATURITY DATES VALUE
AMOUNT (1999) (NOTE A)
- ------------ -------------- -----------
<C> <S> <C> <C>
COMMERCIAL PAPER+ -- 38.7%
$ 1,500,000 American Telephone and Telegraph
Company, 5.05%.......................... 8/23 $ 1,495,581
1,500,000 Bell South Telecommunications Inc.,
5.01%................................... 8/3 1,499,791
1,500,000 Coca-Cola Company, 5.03%................ 8/10 1,498,322
1,500,000 Ford Motor Credit Company, 5.06%........ 8/6 1,499,157
1,500,000 International Lease Finance Corp.,
5.03%................................... 8/20 1,496,228
1,500,000 Lucent Technologies Inc., 5.04%......... 8/27 1,494,750
1,500,000 Merrill Lynch and Company, 5.00%........ 8/2 1,500,000
1,500,000 Motorola Inc., 5.01%.................... 8/3 1,499,790
1,500,000 Walt Disney Company, 4.96%.............. 8/11 1,498,140
-----------
TOTAL COMMERCIAL PAPER (Cost
$13,481,759)............................ 13,481,759
-----------
U.S. GOVERNMENT INTEREST BEARING AND AGENCIES -- 38.7%
1,500,000 Federal Agriculture Mortgage
Association, 4.95%...................... 8/6 1,499,175
1,500,000 Federal Farm Credit Bank, 5.01%......... 8/4 1,499,583
3,500,000 Federal Home Loan Mortgage Corp.,
4.95%................................... 8/16 3,493,263
1,500,000 Federal Home Loan Mortgage Corp.,
4.98%................................... 8/16 1,497,095
1,500,000 Federal Home Loan Mortgage Corp.,
4.97%................................... 8/19 1,496,480
1,500,000 Federal National Mortgage Association,
4.85%................................... 8/5 1,499,394
2,500,000 Federal National Mortgage Association,
4.95%................................... 9/2 2,489,344
-----------
TOTAL U.S. GOVERNMENT INTEREST BEARING
AND AGENCIES
(Cost $13,474,334)...................... 13,474,334
-----------
REPURCHASE AGREEMENTS -- 22.8%
7,936,000 Merrill Lynch Government Securities,
Inc. 4.95%; Collateralized by $7,955,000
Federal National Mortgage Association,
5.56% due 9/15/00, (repurchase proceeds
$7,939,274), market value $8,091,430.... 8/2 7,936,000
-----------
TOTAL INVESTMENTS -- 100.2% (COST
$34,892,093)............................ 34,892,093
OTHER ASSETS LESS LIABILITIES --
(.2%)................................... (97,957)
-----------
NET ASSETS --100.0% -- equivalent to
$1.00 per share for 34,794,136
outstanding Capital Shares in the Trust,
$.10 par value (unlimited number of
shares authorized) -- NOTE E............ $34,794,136
-----------
-----------
</TABLE>
+ At July 31, 1999, investments in commercial paper are diversified among
several industries with no significant concentration. At the time of
purchase, all commercial paper investments are rated A-1 by S&P or P-1 by
Moody's Rating Services. These ratings were not audited by KPMG LLP.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<S> <C> <C>
INTEREST INCOME......................... $ 5,472,819
EXPENSES -- NOTE B
Management fees....................... $ 528,509
Custodian and transfer agent fees..... 350,663
Printing.............................. 111,994
Professional fees..................... 49,978
Postage............................... 49,450
Trustees' fees........................ 24,000
Registration and filing fees.......... 23,706
Insurance expense..................... 14,882
Miscellaneous......................... 46,256 1,199,438
----------------- --------------
INVESTMENT INCOME -- NET................ $ 4,273,381
--------------
--------------
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
---------------------------
1999 1998
------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS --
NOTE C
OPERATIONS:
Investment income -- net............ $ 4,273,381 $ 10,216,408
DISTRIBUTIONS TO SHAREHOLDERS FROM NET
INVESTMENT INCOME..................... (4,273,381) (10,216,408)
CAPITAL SHARE TRANSACTIONS -- NET..... (129,681,819) (20,709,783)
------------- ------------
Total decrease in net assets.... (129,681,819) (20,709,783)
NET ASSETS
Beginning of period................... 164,475,955 185,185,738
------------- ------------
End of period......................... $ 34,794,136 $164,475,955
------------- ------------
------------- ------------
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
CARNEGIE GOVERNMENT SECURITIES TRUST
STATEMENT OF NET ASSETS
JULY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MATURITY DATES VALUE
AMOUNT (1999) (NOTE A)
- ---------- -------------- ------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES -- 75.8%
$ 500,000 Federal Home Loan Bank, 5.01%...... 8/16 $ 499,026
500,000 Federal Home Loan Mortgage Corp.,
4.98%.............................. 8/3 499,931
250,000 Federal Home Loan Mortgage Corp.,
4.90%.............................. 8/9 249,762
400,000 Federal Home Loan Mortgage Corp.,
4.95%.............................. 8/16 399,230
250,000 Federal Home Loan Mortgage Corp.,
4.94%.............................. 8/17 249,485
500,000 Federal Home Loan Mortgage Corp.,
4.96%.............................. 8/18 498,898
250,000 Federal Home Loan Mortgage Corp.,
4.95%.............................. 8/26 249,175
------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $2,645,507).................. $ 2,645,507
------------
REPURCHASE AGREEMENTS -- 24.5%
854,000 Merrill Lynch Government
Securities, Inc., 4.95%;
Collateralized by $860,000 Federal
National Mortgage Association,
5.56% due 9/15/2000 (repurchase
proceeds $854,352), market value
$874,749........................... 8/2 854,000
------------
TOTAL INVESTMENTS -- 100.3% (COST
$3,499,507)........................ 3,499,507
OTHER ASSETS LESS LIABILITIES --
(.3%)............................ (8,948)
------------
NET ASSETS -- 100.0% -- equivalent
to $1.00 per share for 3,490,559
outstanding Capital Shares in the
Trust, $.10 par value (unlimited
number of shares authorized) --
NOTE E........................... $ 3,490,559
------------
------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<S> <C> <C>
INTEREST INCOME......................... $ 514,939
EXPENSES -- NOTE B
Management fees....................... $ 50,531
Custodian and transfer agent fees..... 22,381
Registration and filing fees.......... 16,520
Trustees' fees........................ 8,000
Printing.............................. 7,861
Professional fees..................... 6,540
Insurance expense..................... 1,412
Postage............................... 703
Miscellaneous......................... 3,412 117,360
----------- -----------
INVESTMENT INCOME -- NET................ $ 397,579
-----------
-----------
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
------------------------
1999 1998
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS --
NOTE C
OPERATIONS:
Investment income -- net............ $ 397,579 $ 657,166
DISTRIBUTIONS TO SHAREHOLDERS FROM NET
INVESTMENT INCOME................... (397,579) (657,166)
CAPITAL SHARE TRANSACTIONS -- NET..... (11,043,693) 2,093,843
----------- -----------
Total increase/(decrease)
decrease in net assets.......... (11,043,693) 2,093,843
NET ASSETS
Beginning of period............. 14,534,252 12,440,409
----------- -----------
End of period................... $ 3,490,559 $14,534,252
----------- -----------
----------- -----------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
CARNEGIE TAX FREE INCOME TRUST
STATEMENT OF NET ASSETS
JULY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT RATING* (NOTE A)
- ---------- ------- -----------
<C> <S> <C> <C>
MUNICIPAL SECURITIES+ -- 99.8%
ALABAMA -- 19.7%
$ 200,000 Alabama Special Care Facility
Variable Rate Demand Revenue Bonds
3%, 8/4/1999....................... Aaa $ 200,000
300,000 Birmingham-Carraway Alabama Special
Care Facility Variable Rate Demand
Revenue Bonds 3%, 8/4/1999......... Aa3 300,000
400,000 Daphne Alabama Special Care
Facility Variable Rate Demand
Revenue Bonds 3%, 8/4/1999......... Aa3 400,000
300,000 Columbia Industrial Development
Brd. Pollution Control Variable
Rate Demand Revenue Bonds 3.4%,
8/2/1999........................... A2 300,000
300,000 Stevenson Industrial Development
Brd. Improvement Variable Rate
Demand Revenue Bonds 3.35%,
8/2/1999........................... AA 300,000
ALASKA -- 5.3%
400,000 Alaska State Housing Finance Corp.
Variable Rate Demand Revenue Bonds
3%, 8/4/1999....................... Aaa 400,000
CALIFORNIA-- 3.9%
300,000 Los Angeles Regional Airports
Improvement Corporation Variable
Rate Demand Revenue Bonds 3.4%,
8/2/1999........................... Aa2 300,000
GEORGIA -- 7.8%
300,000 Burke County Georgia Pollution
Control Variable Rate Demand
Revenue Bonds 3.4%, 8/2/1999....... A2 300,000
300,000 Gwinnet County Georgia Hospital
Authority Variable Rate Demand
Revenue Bonds 3%, 8/4/199.......... AAA 300,000
ILLINOIS -- 5.3%
400,000 Chicago O'Hare International
Airport Variable Rate Demand
Revenue Bonds 3%,
8/4/1999........................... Aa3 400,000
LOUISIANA -- 2.6%
200,000 Lake Charles Louisiana Harbor and
Terminal District Variable Rate
Demand Revenue Bonds 3%,
8/4/1999........................... AA- 200,000
MICHIGAN -- 2.6%
200,000 Michigan State Hospital Finance
Authority Variable Rate Demand
Revenue Bonds 3.08%, 8/4/1999...... A1 200,000
NEW YORK -- 3.9%
300,000 New York State Energy Research
Variable Rate Demand Revenue Bonds
3.3%, 8/2/1999..................... Aa3 300,000
NORTH CAROLINA -- 5.3%
400,000 Wake County North Carolina
Industrial Facilities Variable Rate
Demand Revenue Bonds 3.4%,
8/2/1999........................... Aa2 400,000
NORTH DAKOTA -- 5.3%
400,000 Grand Forks North Dakota Hospital
Facilities Variable Rate Demand
Revenue Bonds 3.4%, 8/2/1999....... Aa3 400,000
OHIO -- 2.6%
200,000 Cuyahoga County Ohio Hospital
Variable Rate Demand Revenue Bonds
3.35%, 8/2/1999.................... Aa2 200,000
OKLAHOMA -- 5.3%
400,000 Garfield County Oklahoma Pollution
Control Variable Rate Demand
Revenue Bonds 3.2%, 8/4/1999....... Aa3 400,000
OREGON -- 5.3%
400,000 Port of Portland Pollution Control
Variable Rate Demand Revenue Bonds
3.4%, 8/2/1999..................... Aa3 400,000
PENNSYLVANIA -- 6.5%
400,000 Delaware County Industrial
Development Variable Rate Demand
Revenue Bonds 3.35%, 8/2/1999...... Aaa 400,000
100,000 Lehigh County Hospital Authority
Variable Rate Demand Revenue Bonds
3.4%,
8/2/1999........................... Aaa 100,000
TENNESSEE -- 3.9%
300,000 Nashville Metropolitan Government
Health and Education Variable Rate
Demand Revenue Bonds 3.4%,
8/2/1999........................... AAA 300,000
TEXAS -- 5.3%
400,000 Grapevine Texas Industrial
Development Corporation Variable
Rate Demand Revenue Bonds 3.4%,
8/2/1999........................... Aa3 400,000
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
CARNEGIE TAX FREE INCOME TRUST
STATEMENT OF NET ASSETS-- CONTINUED
JULY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT RATING* (NOTE A)
- ---------- ------- -----------
WASHINGTON -- 3.9%
<C> <S> <C> <C>
$ 300,000 Port of Seattle Washington Variable
Rate Demand General Obligation
Bonds 3%,
8/4/1999........................... Aa1 $ 300,000
WYOMING -- 5.3%
400,000 Lincoln County Wyoming Pollution
Control Variable Rate Demand
Revenue Bonds 3.35%, 8/2/1999...... Aaa 400,000
-----------
TOTAL INVESTMENTS -- 99.8% (COST
$7,600,000)........................ 7,600,000
OTHER ASSETS LESS LIABILITIES --
.2%................................ 14,006
-----------
NET ASSETS -- 100% -- equivalent to
$1.00 per share for 7,614,006
outstanding Capital Shares in the
Trust, $.10 par value (unlimited
number of shares authorized) --
Note E............................. $ 7,614,006
-----------
-----------
</TABLE>
+ Floating Rate Demand Notes (F.R.D.N.) and Floating Rate Participation
Certificates (F.R.P.C.) are instruments whose interest rates vary with
changes in a designated base rate (such as the prime interest rate).
Variable Rate Demand Notes (V.R.D.N.) are instruments whose interest rates
change on a specified date (such as coupon date or interest payment date).
These instruments are payable on demand and are secured by letters of
credit or other credit support agreements from major banks. Maturity dates
disclosed represent the next reset date.
* All ratings are stated as of July 31, 1999 by Moody's Investor Services,
Inc. or Standard and Poor's. Unrated municipal obligations, if any, are
considered by the Trust's investment adviser, Carnegie Capital Management
Company, to have characteristics and quality comparable to the rated
municipal obligations purchased by the Fund, and are in accordance with
policies established by the Board of Trustees. These ratings were not
audited by KPMG LLP.
See Notes to Financial Statements.
7
<PAGE>
CARNEGIE TAX FREE INCOME TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<S> <C> <C>
INTEREST INCOME......................... $ 580,129
EXPENSES -- NOTE B
Management fees....................... $ 90,379
Custodian and transfer fees........... 14,339
Professional fees..................... 11,819
Printing.............................. 9,921
Registration and filing fees.......... 8,614
Trustees' fees........................ 8,000
Postage............................... 2,004
Insurance Expense..................... 1,883
Miscellaneous......................... 3,696 150,655
------------ -----------
INVESTMENT INCOME -- NET................ $ 429,474
-----------
-----------
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
-------------------------
1999 1998
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS --
NOTE C
OPERATIONS:
Investment income -- net............ $ 429,474 $ 570,497
DISTRIBUTIONS TO SHAREHOLDERS FROM NET
INVESTMENT INCOME..................... (429,474) (570,497)
CAPITAL SHARE TRANSACTIONS -- NET... (14,191,696) 1,616,939
------------ -----------
Total increase/(decrease)
decrease in net assets........ (14,191,696) 1,616,939
NET ASSETS
Beginning of period........... 21,805,702 20,188,763
------------ -----------
End of period................. $ 7,614,006 $21,805,702
------------ -----------
------------ -----------
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
CARNEGIE TAX EXEMPT INCOME TRUST
OHIO GENERAL MUNICIPAL FUND
STATEMENT OF NET ASSETS -- JULY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT RATING* (NOTE A)
- ---------- ------- ------------
<C> <S> <C> <C>
MUNICIPAL BONDS -- 90.9%
$ 400,000 Cuyahoga Cnty. University Hosp.
Revenue Refunding & Improvement
5.63%, 1/15/2026................... AAA $ 405,630
500,000 Cuyahoga Cnty. Meridia Hlth. Care
Sys. Revenue Bonds 7.00%,
8/15/2001.......................... AAA 538,647
600,000 Franklin Cnty. Hosp. Revenue
Refunding & Improvement Riverside
7.60%, 5/15/2000................... AAA 630,865
200,000 Franklin Cnty. Riverside Hosp.
Revenue Bonds 7.25%, 5/15/2000..... AAA 209,747
850,000 Hamilton Cnty. Bethesda Hosp.
Revenue Bonds 7.00%, 1/1/2009...... A 857,239
450,000 Mahoning Cnty. Sanitary Sewer Sys.
Revenue Bonds 7.50%, 2/1/2009...... AAA 465,278
145,000 Ohio Capital Corp. Housing Revenue
Bonds 7.60%, 11/1/2023............. AAA 150,489
246,000 Ohio Housing Finance Agency Revenue
Bonds 7.05%, 9/1/2016.............. AAA 255,867
150,000 Rural Lorain Water Auth. Ref. &
Impt. Revenue Bonds 5.45%,
10/1/2018.......................... AAA 151,946
1,415,000 Toledo Sewer System Ref. & Impt.
Revenue Bonds 3.50%, 11/15/2002.... AAA 1,390,325
1,575,000 Toledo Waterworks Ref. & Impt.
Revenue Bonds 4.00%, 11/15/2001.... AAA 1,574,241
500,000 Toledo Waterworks Ref. & Impt.
Revenue Bonds 4.13%, 11/15/2008.... AAA 479,432
145,000 University Heights B General
Obligation Bonds 6.20%,
12/1/2014.......................... NR 155,303
500,000 Washington Water Sys. Revenue Bonds
5.38%, 12/1/2019................... AAA 505,038
------------
TOTAL MUNICIPAL BONDS -- (COST
$7,655,357)........................ 7,770,047
------------
SHORT-TERM TAX EXEMPT INVESTMENTS -- 5.9%
100,000 Burke County Georgia Pollution
Control Variable Rate Demand
Revenue Bonds 3.40%,
8/2/99............................. A2 100,000
200,000 California Statewide Community
Development Variable Rate Demand
Revenue Bonds 2.90%, 8/2/99........ AAA 200,000
200,000 Franciscan Sisters of the Poor,
South Carolina, Variable Rate
Demand Revenue Bonds 3.40%,
8/2/99............................. Aa2 200,000
------------
TOTAL SHORT-TERM TAX EXEMPT
INVESTMENTS (COST $500,000)........ 500,000
------------
TOTAL INVESTMENTS -- 96.8% (COST
$8,155,357)........................ 8,270,047
OTHER ASSETS LESS LIABILITIES --
3.2%............................... 274,602
------------
NET ASSETS -- 100%................. $ 8,544,649
------------
------------
NET ASSET VALUE PER SHARE.......... $ 9.38
------------
------------
SHARES OUTSTANDING (unlimited
number of shares authorized; $.10
par value) -- Note C............... 910,583
------------
------------
MAXIMUM OFFERING PRICE PER SHARE
(net asset value plus 4.71% of net
amount invested or 4.5% of the
offering price).................... $ 9.82
------------
------------
NET ASSETS, AS OF JULY 31, 1999,
ARE COMPRISED OF THE FOLLOWING:
Aggregate paid in capital.......... $ 8,560,607
Accumulated undistributed net
realized losses.................... (130,648)
Unrealized appreciation of
investments -- net................. 114,690
------------
$ 8,544,649
------------
------------
</TABLE>
* All ratings are stated as of July 31, 1999 by Moody's Investor Services,
Inc. or Standard and Poor's. The unrated municipal obligations, if any, are
considered by the Trust's investment adviser, Carnegie Capital Management
Company, to have characteristics and quality comparable to the rated
municipal obligations purchased by the Fund, and are in accordance with
policies established by the Board of Trustees. These ratings were not
audited by KPMG LLP.
See Notes to Financial Statements.
9
<PAGE>
CARNEGIE TAX EXEMPT INCOME TRUST
OHIO GENERAL MUNICIPAL FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<S> <C>
INTEREST INCOME................................... $ 524,321
EXPENSES -- NOTE B
Management fees................................... 45,858
12b-1 fees........................................ 27,568
Shareholder Reporting............................. 10,547
Professional fees................................. 9,250
Trustees' fees.................................... 8,000
Custodian and Transfer Agent fees................. 2,622
Registration and filing fees...................... 1,100
Insurance expense................................. 781
Miscellaneous expenses............................ 8,676
---------
Total expenses before fee waivers........... 114,402
Fee waivers....................................... 27,568
---------
Total net expenses.......................... 86,834
---------
NET INVESTMENT INCOME............................. 437,487
---------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
- -- NET
Realized gain on investments...................... 143,278
Change in unrealized appreciation of
investments....................................... (377,323)
---------
Net loss on investments........................... (234,045)
---------
NET INCREASE IN NET ASSETS FROM OPERATIONS........ $ 203,442
---------
---------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
------------------------
1999 1998
----------- -----------
<S> <C> <C>
INCREASE (DECREASE)
IN NET ASSETS
OPERATIONS
Net investment income................... $ 437,487 $ 470,847
Realized gain on investments -- net..... 143,278 47,896
Change in unrealized appreciation of
investments -- net...................... (377,323) (67,102)
----------- -----------
Net increase in net assets from
operations.............................. 203,442 451,641
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET
INVESTMENT INCOME....................... (437,487) (470,847)
CAPITAL SHARE TRANSACTIONS -- NOTE C
Shares sold............................. 648,789 616,998
Shares issued on reinvestment of
distributions........................... 288,411 319,004
----------- -----------
937,200 936,002
Shares redeemed......................... (1,379,002) (1,979,505)
----------- -----------
Net decrease from capital shares
transactions............................ (441,802) (1,043,503)
----------- -----------
Total decrease in net assets...... (675,847) (1,062,709)
NET ASSETS
Beginning of period..................... 9,220,496 10,283,205
----------- -----------
End of period........................... $ 8,544,649 $ 9,220,496
----------- -----------
----------- -----------
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
CARNEGIE FUNDS GROUP (THE "TRUSTS")
NOTES TO FINANCIAL STATEMENTS
NOTE A -- ACCOUNTING POLICIES
Liquid Capital Income Trust (LCI), Carnegie Government Securities Trust
(CGST) and Carnegie Tax Free Income Trust (CTF) (the "Money Funds") are money
market funds. The Trusts are open-end, diversified management investment
companies registered under the Investment Company Act of 1940, as amended.
Carnegie Tax-Exempt Income Trust is a business trust organized under the
laws of the State of Ohio pursuant to a Declaration of Trust dated September 19,
1985 and is registered under the Investment Company Act of 1940, as amended, as
a non-diversified, open-end management investment company. The Trust offers
shares of beneficial interest in the Ohio General Municipal Fund ("Ohio
General"). Ohio General is managed in accordance with the investment objectives
and policies of the Fund.
The following is a summary of significant accounting policies followed by
the Trusts. The policies are in conformity with generally accepted accounting
principles.
USE OF ESTIMATES -- The preparation of financial statements requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of income and expenses for the period. Actual results could differ from
those estimates.
SECURITY VALUATIONS -- Investment securities for LCI, CGST and CTF are
valued using the amortized cost method whereby a security is valued at cost
adjusted for the amortization of any premiums or discounts over the period until
maturity. The cost of portfolio securities is substantially the same for
financial reporting and federal income tax purposes.
The value of municipal obligations held by Ohio General are furnished by
pricing services approved by the Trust's Board of Trustees using methods based
on market transactions for comparable securities and other factors which are
generally recognized by institutional traders. Short-term portfolio securities
are valued using the amortized cost method whereby a security is valued at cost
adjusted for the amortization of any premiums or discounts over the period until
maturity. Securities are valued at the average of the bid and asked price.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security transactions
are accounted for on the trade date (date order to buy or sell is executed).
Interest income is determined on the basis of accrued interest and discount
earned (including original issue and market discount) and premium amortized.
Realized gains and losses, if any, on sales of securities are calculated on the
identified cost basis.
REPURCHASE AGREEMENTS -- For LCI and CGST, all repurchase agreements are
collateralized by United States Government Securities and such collateral is in
the possession of the Trusts' custodian. Each Trust evaluates collateral daily.
The market value of collateral is noted in the Statement of Net Assets. Unless
otherwise noted, the purchase date for all repurchase agreements was July 30,
1999.
FEDERAL INCOME TAXES -- The Trusts have elected to fulfill the applicable
requirements of the Internal Revenue Code relating to regulated investment
companies by distributing all income to shareholders and, accordingly, no
provision for federal income taxes is required.
Distributions paid by Ohio General from net investment income on tax-exempt
municipal obligations are not includable by shareholders as gross income for
federal income tax purposes because Ohio General has fulfilled certain
requirements of the Internal Revenue Code applicable to regulated investment
companies which will enable Ohio General to pay exempt-interest distributions.
For the year ended July 31, 1999, Ohio General had capital loss carryovers for
federal income tax purposes of $130,648.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS -- Delivery and payment for
securities which have been purchased on a when-issued or delayed delivery basis
can take place a month or more after the date of the transaction. The securities
so purchased are subject to market fluctuation during this period. The Trusts
instruct the custodian to segregate assets in a separate account with a market
value equal to the amount of its purchase commitment. At July 31, 1999, there
were no when-issued securities.
CAPITAL SHARE TRANSACTIONS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Money
Funds' shares are sold in continuous public offerings and are redeemed at their
respective net asset values. LCI and CGST declare and pay dividends each
business day to distribute their net investment income and realized net
short-term capital gains, if any.
CTF declares a dividend each business day and pays the dividend monthly. For
LCI and CGST, all such dividends are automatically reinvested in additional
shares of the applicable Trust at their respective net asset values. For CTF,
the shareholders may elect a cash distribution of dividends or elect automatic
reinvestment in additional shares of the Trust at its net asset value.
Ohio General shares are sold in a continuous public offering and are
redeemed at the net asset value. The Fund declares distributions each business
day and pays the distributions monthly. Shareholders may elect to reinvest such
distributions at the net asset value on the payment date or receive the
distributions in cash.
The amount of dividends and distributions are determined in accordance with
federal income tax regulations, which may differ from generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their federal tax basis treatment; temporary differences do not require
reclassification.
As of July 31, 1999, the following reclassifications have been made to
increase (decrease) such accounts:
<TABLE>
<CAPTION>
ACCUMULATED
AGGREGATE PAID IN UNDISTRIBUTED NET
CAPITAL REALIZED LOSS
------------------ ------------------
<S> <C> <C>
Ohio General Fund....................... $(258,208) $258,208
</TABLE>
NOTE B -- MANAGEMENT FEE AND DISTRIBUTION FEE
Pursuant to the investment advisory contract (the "Advisory Contract") in
effect between the Trusts and Carnegie Capital Management Company ("CCMC"), CCMC
is responsible for the management of the investments for the Trusts, and the
overall management of the business affairs, subject to the general supervision
and control of the Board of Trustees.
CCMC performs and bears the cost of research, statistical analysis and
continuous supervision of the investment portfolios of the Trusts and furnishes
office facilities and certain clerical and administrative services. In addition,
CCMC, together with Carnegie Fund Distributors, Inc. ("CFD"), the Fund's
principal underwriter and a wholly-owned subsidiary of CCMC, bears promotional
expenses,
11
<PAGE>
CARNEGIE FUNDS GROUP (THE "TRUSTS")
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
including costs of printing and distributing prospectuses utilized for
promotional purposes, other than those waived under the Distribution Expense
Plan described below.
LCI compensates CCMC with a management fee at an annual rate of .50% of
LCI's average daily net assets up to $700 million, .45% of the next $500
million, .40% of the next $800 million and .35% of the average daily net assets
exceeding $2.0 billion. For the year ended July 31, 1999, LCI had $15,389
payable to CCMC for management fees, and for the year then ended CCMC earned
management fees of $528,509.
CGST compensates CCMC with a management fee at an annual rate of .50% of
CGST's average daily net assets up to $100 million, .40% of the next $200
million and .35% of average daily net assets in excess of $300 million. For the
year ended July 31, 1999, CGST had $1,538 payable to CCMC for management fees,
and for the year then ended CCMC earned management fees of $50,531.
CTF compensates CCMC with a management fee at an annual rate of .50% of
CTF's average daily net assets. For the year ended July 31, 1999, CTF had $3,371
payable to CCMC for management fees, and for the year then ended CCMC earned
management fees of $90,379.
Ohio General compensates CCMC with a management fee at an annual rate of
.50% of Ohio General's average daily net assets. For the year ended July 31,
1999, Ohio General had $3,548 payable to CCMC for management fees, and for the
year then ended CCMC earned management fees of $45,858.
In addition, in the event that the aggregate operating expenses of the Money
Funds and Ohio General (excluding certain expenses and, where permitted by
applicable state securities regulations, expenses incurred as part of the
Distribution Expense Plan described below) exceed any expense limitations
imposed by applicable state securities regulations, CCMC will reimburse 100% of
such excess expenses. There were no excess expenses for the year ended July 31,
1999.
The Trustees have adopted a Distribution Expense Plan pursuant to Rule 12b-1
under the 1940 Act with respect to Ohio General. Pursuant to the Distribution
Expense Plan, Ohio General will pay to CFD quarterly a Distribution Fee at the
annual rate of .30 of 1% of the average daily net assets. If actual Distribution
Expenses incurred for the year are less than the yearly Distribution Fee, as
calculated above, the Ohio General will pay an amount equal to such Distribution
Expenses. CFD is required to use .20 of 1% of such fee to make continuing
payments to authorized securities dealers for their continuing distribution and
promotional assistance in connection with the sale of the shares of Ohio
General. The remaining portion of the Distribution Fee must be utilized by CFD
for expenses incurred which are primarily intended to result in the sale of
shares including, but not limited to, paying for the preparation, printing and
distribution of sales literature and other promotional materials to existing and
prospective investors and by directly or indirectly purchasing radio,
television, newspaper and other media advertising and conducting sales seminars,
sales contests, and other incentives. Distribution fees in the amount of $27,568
for the year ended July 31, 1999 were waived for the Ohio General Municipal
Fund.
For the year ended July 31, 1999, CFD received sales charges paid by the
purchasers of Ohio General's shares of $8,762. Such sales charges are not
expenses of Ohio General and hence are not reflected in the accompanying
Statements of Operations. CCMC, CFD and the Trusts have certain officers in
common.
LCI compensates independent trustees with a quarterly fee of $1,500. CGST,
CTF and Ohio General compensate trustees with a quarterly fee of $500.
NOTE C -- CAPITAL SHARES
Transactions in shares (and capital for the Money Funds) were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
--------------------------
1999 1998
------------ ------------
<S> <C> <C>
LCI
Shares sold........................... 187,629,352 666,052,853
Shares issued on reinvestment of
distributions....................... 4,273,381 10,216,408
------------ ------------
191,902,733 676,269,261
Shares redeemed....................... (321,584,552) (696,979,044)
------------ ------------
Net decrease in capital shares........ (129,681,819) (20,709,783)
------------ ------------
------------ ------------
CGST
Shares sold........................... 5,543,944 14,224,541
Shares issued on reinvestment of
distributions....................... 397,579 657,166
------------ ------------
5,941,523 14,881,707
Shares redeemed....................... (16,985,216) (12,787,864)
------------ ------------
Net increase/(decrease) in capital
shares.............................. (11,043,693) 2,093,843
------------ ------------
------------ ------------
CTF
Shares sold........................... 24,208,447 41,751,665
Shares issued on reinvestment of
distributions....................... 429,474 570,497
------------ ------------
24,637,921 42,322,162
Shares redeemed....................... (38,829,617) (40,705,223)
------------ ------------
Net increase/(decrease) in capital
shares.............................. (14,191,696) 1,616,939
------------ ------------
------------ ------------
OHIO GENERAL
Shares sold........................... 66,804 64,230
Shares issued on reinvestment of
distributions from net investment
income.............................. 29,968 33,074
------------ ------------
Net increase/(decrease) in capital
shares................................ 96,772 97,304
Shares redeemed......................... (142,706) (205,805)
------------ ------------
Net decrease in capital shares.......... (45,934) (108,501)
------------ ------------
------------ ------------
</TABLE>
12
<PAGE>
CARNEGIE FUNDS GROUP (THE "TRUSTS")
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
NOTE D -- PURCHASES AND SALES OF INVESTMENT SECURITIES -- OHIO GENERAL MUNICIPAL
FUND
Purchases of investment securities and value of securities maturing or sold
excluding short-term securities during the year ended July 31, 1999 amounted to
$4,370,078 and $5,404,221 respectively.
For Federal income tax purposes, the identified cost of securities owned on
July 31, 1999 was $8,155,357. Aggregate unrealized appreciation on the cost
basis of investments was $136,789, and aggregate unrealized depreciation was
$22,099. Net unrealized appreciation at July 31, 1999 was $114,690.
NOTE E -- NET ASSETS
Net Assets, as of July 31, 1999, are comprised of the following:
<TABLE>
<CAPTION>
LCI CGST CTF
----------- ---------- ----------
<S> <C> <C> <C>
Capital shares, at par............. $ 3,479,414 $ 349,056 $ 761,401
Capital shares in excess of par.... 31,314,722 3,141,503 6,852,605
----------- ---------- ----------
Net Assets......................... $34,794,136 $3,490,559 $7,614,006
----------- ---------- ----------
----------- ---------- ----------
</TABLE>
NOTE F -- CONCENTRATION OF CREDIT RISK
The Ohio General Municipal Fund invests substantially all of its assets in a
non-diversified portfolio of tax-exempt debt obligations issued by the State of
Ohio and its authorities and agencies. The Issuers' abilities to meet their
obligations may be affected by economic or political developments in the state
of Ohio.
NOTE G -- FUNDS' TERMINATION PLAN
On July 27, 1999, the board of trustees of each of the Funds determined that
it would be in the best interests of the Funds and their shareholders to
terminate the Funds by liquidating and distributing the Funds' assets to
shareholders and dissolving the Funds under applicable state law.
Under the governing Declaration of Trust for each Fund, this termination
must be approved by shareholders in order to become effective. Each Fund will
hold a special meeting of shareholders to vote upon its termination, and
shareholders have been furnished with a proxy statement for that special
meeting, which is scheduled to be held on October 4, 1999. The proxy statement
contains an explanation of the events that led the trustees to consider
terminating the Funds and the reasons for their determination that it would be
appropriate to do so.
In view of the circumstances, each of the Funds has suspended sales of its
shares to new investors, effective July 28, 1999. This suspension does not
affect the automatic reinvestment of dividends and other distributions, which
will continue to be made on behalf of shareholders. Existing shareholders may
continue to purchase additional shares of the Funds and continue to have the
right to redeem shares in any of the Funds.
13
<PAGE>
CARNEGIE CAPITAL
MANAGEMENT COMPANY
THE CARNEGIE FUNDS GROUP
1228 Euclid Avenue, Cleveland, Ohio 44115
Phone: (216) 781-4440
call toll free (800) 321-2322
- --------------------------------------------------------------------------------
CARNEGIE
Liquid Capital Income Trust
is a money market fund with dividends compounded
daily. Withdraw cash at any time without penalty.
CARNEGIE
Government Securities Trust
is a money market fund investing in securities issued
or guaranteed by the U.S. Government, its agencies
or instrumentalities and repurchase agreements.
CARNEGIE
Tax Free Income Trust
provides income free from federal income taxation--
while offering all the advantages of
a money market fund.
CARNEGIE
Tax Exempt Income Trust
Ohio General Municipal Fund
provides a high level of current income
exempt from federal income tax.
THIS REPORT WAS PREPARED FOR SHAREHOLDERS OF THE TRUST. IT IS NOT AUTHORIZED FOR
DISTRIBUTION TO OTHERS UNLESS IT IS ACCOMPANIED OR PRECEDED BY A CURRENT
COMBINED PROSPECTUS. FOR MORE COMPLETE INFORMATION ON CARNEGIE FUNDS, INCLUDING
SALES CHARGES AND EXPENSES, SEE THE APPROPRIATE SECTIONS OF THE COMBINED
PROSPECTUS, WHICH MAY BE OBTAINED FROM CARNEGIE OR YOUR BROKER. READ THE
PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
[LOGO]
CARNEGIE CAPITAL MANAGEMENT COMPANY
Carnegie
Funds Group
- ------------------
- Liquid Capital Income Trust
- Carnegie Government Securities Trust
- Carnegie Tax Free Income Trust
- Carnegie Tax Exempt Income Trust -- Ohio General Municipal Fund
-------------------------------------
Annual Report
July 31, 1999
--------------------------------
<TABLE>
<C> <S>
[LOGO] CARNEGIE CAPITAL MANAGEMENT COMPANY
100 The Halle Building
1228 Euclid Avenue
Cleveland, Ohio 44115-1831
</TABLE>
