ANNUAL REPORT
October 31, 2000
[COVER GRAPHIC OMITTED: ACORN, COLUMN, GRADUATION CAP, HANDSHAKE]
GALAXY TAX-EXEMPT BOND FUNDS
GALAXY FUNDS
Galaxy Tax-Exempt Bond Fund
Galaxy Connecticut Municipal
Bond Fund
Galaxy Massachusetts Municipal
Bond Fund
Galaxy New Jersey Municipal
Bond Fund
Galaxy New York Municipal
Bond Fund
Galaxy Rhode Island Municipal
Bond Fund
Galaxy Intermediate Tax-Exempt
Bond Fund
Galaxy Connecticut Intermediate
Municipal Bond Fund
Galaxy Florida Municipal
Bond Fund
Galaxy Massachusetts Intermediate
Municipal Bond Fund
[GRAPHIC OMITTED: GALAXY LOGO]
GALAXY
FUNDS
<PAGE>
CHAIRMAN'S MESSAGE
[BEGIN SIDEBAR] MUTUAL FUNDS:
(BULLET) ARE NOT BANK DEPOSITS
(BULLET) ARE NOT FDIC INSURED
(BULLET) ARE NOT OBLIGATIONS OF, OR GUARANTEED BY, ANY BANK
(BULLET) ARE SUBJECT TO INVESTMENT RISK, INCLUDING POSSIBLE LOSS OF THE
PRINCIPAL AMOUNT INVESTED
[END SIDEBAR]
Dear Shareholder:
Enclosed is the annual report for the Galaxy Tax-Exempt Bond Funds for the
fiscal year ended October 31, 2000. The report includes a Market Overview that
explains the different economic and market factors influencing municipal bond
investments during this time. Following the Market Overview is a Portfolio
Strategy Review that describes how Fleet Investment Advisors Inc. ("FIA")
managed the Funds' portfolios in this climate. Financial statements and a list
of portfolio holdings for each of the Funds as of October 31, 2000 appear at the
end of the report.
In the wake of continued economic strength that threatened higher
inflation, the Federal Reserve (the "Fed") raised short-term interest rates by
125 basis points (1.25%) during the first part of the reporting period. Besides
pushing bond yields higher, the hikes in short-term rates eventually caused
economic growth to slow enough to keep inflation at bay. With slower growth, and
the prospect of reduced supplies of Treasury issues, bond yields moved lower for
most of the second half of the period. Municipal bonds outperformed nearly all
other fixed-income asset classes in this environment.
Over the course of the year, however, volatility increased for both stocks
and bonds. While such volatility can be unnerving, even for experienced
investors, short-term market fluctuations are quite normal and should not deter
you from the asset allocation strategy you've set to meet long-term financial
goals.
The Galaxy Funds have taken several steps to help you reach those goals.
With the completion of the reorganization of the Boston 1784 Funds into the
Galaxy Funds in June 2000, you now have a broader range of Funds from which to
choose in diversifying your portfolio. As assets from the Boston 1784 Funds were
transferred to existing Galaxy Funds in connection with the reorganization, FIA
made the portfolio adjustments necessary in seeking to achieve each Fund's
investment objective. In implementing such trades, FIA sought to make the most
of current market conditions and to maximize the Funds' returns.
Going forward, Keith Banks, FIA's new Chief Investment Officer, will
oversee the portfolio management of the Galaxy Tax-Exempt Bond Funds and other
funds in the Galaxy family. Mr. Banks was the former managing director and head
of U.S. equities for J.P. Morgan Investment Management.
If you would like to know more about the expanded array of Galaxy Funds, or
you have questions about the information in this report, please contact the
Galaxy Information Center at 1-877-BUY-GALAXY (1-877-289-4252) or visit us at
www.galaxyfunds.com. You may also consult your financial advisor.
Sincerely,
/S/ SIGNATURE DWIGHT E. VICKS, JR.
Dwight E. Vicks, Jr.
Chairman of the Board of Trustees
<PAGE>
MARKET OVERVIEW
[BEGIN SIDEBAR]
" THROUGHOUT THE REPORTING PERIOD, WE FOCUSED ON ESSENTIAL-PURPOSE MUNICIPAL
BONDS WITH GOOD CALL PROTECTION AND STRONG LIQUIDITY."
[END SIDEBAR]
TAX-EXEMPT BOND MARKET OVERVIEW
BY FLEET INVESTMENT ADVISORS INC.
Over the past 12-months, municipal bonds were one of the best-performing
asset classes, outpacing returns for all U.S. fixed-income classes except
long-term Treasury bonds. In a dynamic market that gave investors a volatile
ride, municipals benefited from many fundamental and technical factors that
should remain in place for some time to come. The active management discipline
of the Galaxy Tax-Exempt Bond Funds enhanced both the Funds' after-tax income
and total returns, helping them to perform well against their market benchmarks
and peer funds tracked by Lipper Inc. ("Lipper").
A FAVORABLE BALANCE OF SUPPLY AND DEMAND
The start of the Funds' reporting period was characterized by unexpectedly
strong economic numbers that resulted in part from heavy consumer spending. For
the fourth quarter of 1999, the Gross Domestic Product ("GDP"), which measures
the output of U.S. goods and services, rose by 7.3%. Growth remained strong in
the first quarter of 2000, with GDP increasing by 4.8%.
In this environment, Fed monetary policy continued to reflect concerns
about rising energy prices, a tight labor market, and a potential increase in
labor costs. With hikes in short-term interest rates beginning in June of 1999,
the Fed had raised the Fed funds rate to 6.5% by the end of March 2000. Although
inflation remained subdued during this time, and well below expectations,
investors worried about higher inflation in the future and further Fed
tightenings.
In this climate, both Treasury and municipal bonds benefited from favorable
balances of supply and demand. In mid-January, the U.S. Treasury announced that
it would buy back approximately $30 billion in outstanding Treasuries, due to an
ever-growing federal budget surplus. The anticipation of dwindling supplies of
long-term Treasuries initiated a sharp rally in prices at the long end of the
Treasury market and a sharp decline in long-term yields. Meanwhile, the yields
for short-term Treasuries continued to rise, as the Fed raised short-term
interest rates by 25 basis points in both February and March. This resulted in
an "inverted" yield curve, in which long-term Treasuries were yielding 56 basis
points less than one-year Treasury bills by late May.
Movements in the yield curve for municipal bonds paralleled those for the
Treasury curve during this time, as municipals also benefited from both
increasing demand and a deceleration in the growth of new supply. Adding to the
increased demand for municipals were economic uncertainties and increased stock
market volatility, which caused many investors to shift out of stocks and into
higher-quality municipal securities. In tandem with the federal budget surplus,
most state and local governments experienced sharply higher revenues and budget
surpluses that both enhanced their credit quality and sharply diminished their
borrowing needs.
After giving back much of the first-quarter gains in April and May, due to
investor concerns about liquidity and tax-related redemptions, the municipal
bond market regained its footing in June and recovered all of the losses of the
previous two months. Municipal bond prices then moved higher in the months that
followed. When the reporting period closed, 30-year Treasury bonds were yielding
5.79%, versus 6.16% when the period began. Over the same time, the yield for the
Lehman Brothers Quality Intermediate 3- to 15-year Municipal Bond Index ("the
Lehman Index") fell from 5.26% to 5.10%. This left the Lehman Index with a total
return of 8.51%, versus a return of 11.44% for long-term Treasury bonds.
During this time, longer-term municipals had a total return of 10.9%,
versus 4.9% for issues with maturities of one to two years. The strong
performance by longer-term municipals contrasted sharply with results from the
previous 12-month reporting period, when short-term investments substantially
outperformed longer maturities
Over the most recent market cycle, the Galaxy Tax-Exempt Bond Funds
benefited from an active portfolio management process that involved adjusting
investment coupons and maturities to make the most of market conditions and
overweighting bonds with the highest credit ratings. After initially emphasizing
shorter maturities, the Funds took advantage of the April/May selloff to execute
tax-loss swaps, coupon up, and extend maturities - which improved the Funds'
income and total return prospects. Throughout the reporting period, we focused
on essential-purpose municipal bonds with good call protection and strong
liquidity.
1
<PAGE>
[BEGIN SIDEBAR]
" ALTHOUGH FUTURE PRICE GAINS FOR MUNICIPAL BONDS MAY BE MORE MODEST THAN IN THE
LAST SIX MONTHS, MUNICIPALS SHOULD CONTINUE TO BENEFIT FROM THE SAME STRONG
FUNDAMENTAL AND TECHNICAL FORCES THAT HAVE PREVAILED SINCE JUNE OF 2000 -
INCLUDING HEALTHY RETAIL DEMAND AND CONSTRAINED SUPPLIES OF NEW ISSUES."
[END SIDEBAR]
OUTLOOK: MODERATE GROWTH AND INFLATION
By late August, market perception had shifted from worries about an
excessively expanding economy and further hikes in short-term interest rates to
concerns about a sharply decelerating economy and the prospects of an easing in
rates by the Fed sometime in the future. Economic fundamentals reflecting slower
GDP growth, reduced personal consumption, and weaker prices have helped to
ameliorate inflation fears but have added to concerns among stock market
investors. As a result, the bond market should enter the year 2001 with
improving fundamentals and strong technicals - all of which should favor
municipal bonds.
In the third quarter of 2000, GDP growth decelerated to 2.4% - the weakest
increase in four years - and the year-over-year gain for the inflation index
price deflator was just 1.9%. This supports our continued expectation for a
modest GDP growth rate of 3.0% to 3.5% for 2001, which would be well within Fed
guidelines
This environment should remain favorable to longer-term bonds. Although
future price gains for municipal bonds may be more modest than in the last six
months, municipals should continue to benefit from the same strong fundamental
and technical forces that have prevailed since June of 2000 - including healthy
retail demand and constrained supplies of new issues.
For investors in the top income tax brackets, municipals remain extremely
attractive versus Treasuries (trading from 85% to 100% of Treasury yields in
maturities of 10 years or longer) and should continue to enjoy strong demand
while stock prices are volatile. Longer-term, the market should continue to
benefit from shifting demographics. As Baby Boomers worry about high-quality,
stable income and principal stability, they should increasingly shift assets out
of a volatile stock market into municipal bonds.
Meanwhile, mounting surpluses at state and local levels should continue to
limit municipal bond supplies and improve the quality ratings of individual
issues. While there may be temporary periods of price weakness in the municipal
market as seasonal factors increase the supply of new issues, we would view such
weakness as an opportunity to improve the credit quality, structure, and
liquidity characteristics of the Funds' portfolios.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS-- TRUST SHARES/SHARES*
AS OF OCTOBER 31, 2000 1 YEAR 3 YEARS 5 YEARS LIFE OF FUND
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax-Exempt Bond Fund (INCEPTION DATE 12/30/91) 8.32% 4.16% 5.05% 6.00%
------------------------------------------------------------------------------------------------------------------------------
Connecticut Municipal Bond Fund (INCEPTION DATE 3/16/93) 7.71 4.16 5.00 5.06
------------------------------------------------------------------------------------------------------------------------------
Massachusetts Municipal Bond Fund (INCEPTION DATE 3/12/93) 8.47 4.10 4.92 4.87
------------------------------------------------------------------------------------------------------------------------------
New Jersey Municipal Bond Fund (INCEPTION DATE 4/3/98) 7.74 N/A N/A 3.44
------------------------------------------------------------------------------------------------------------------------------
New York Municipal Bond Fund (INCEPTION DATE 12/31/91) 9.12 4.31 5.12 5.87
------------------------------------------------------------------------------------------------------------------------------
Rhode Island Municipal Bond Fund (INCEPTION DATE 6/19/00) N/A N/A N/A 3.82(DAGGER)
------------------------------------------------------------------------------------------------------------------------------
Connecticut Intermediate
Intermediate Tax-Exempt Bond Fund (INCEPTION DATE 6/14/93) 8.34 4.33 5.27 5.57
------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Fund (INCEPTION DATE 8/1/94) 7.81 4.24 5.10 5.79
------------------------------------------------------------------------------------------------------------------------------
Florida Municipal Bond Fund INCEPTION DATE 6/30/97) 7.18 3.90 N/A 4.55
------------------------------------------------------------------------------------------------------------------------------
Massachusetts Intermediate
Municipal Bond Fund (INCEPTION DATE 6/14/93) 7.64 4.21 5.00 5.03
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(DAGGER) Unannualized total return
* THE INTERMEDIATE TAX-EXEMPT BOND FUND, CONNECTICUT INTERMEDIATE MUNICIPAL
BOND FUND, FLORIDA MUNICIPAL BOND FUND AND MASSACHUSETTS INTERMEDIATE MUNICIPAL
BOND FUND COMMENCED OPERATIONS AS SEPARATE PORTFOLIOS (EACH A "PREDECESSOR
FUND") OF THE BOSTON 1784 FUNDS. ON JUNE 26, 2000, EACH PREDECESSOR FUND WAS
REORGANIZED AS A NEW PORTFOLIO OF THE GALAXY FUND. PRIOR TO THE REORGANIZATION,
EACH PREDECESSOR FUND OFFERED AND SOLD ONE SERIES OF SHARES. IN CONNECTION WITH
THE REORGANIZATION, (I) SHAREHOLDERS OF THE PREDECESSOR INTERMEDIATE TAX-EXEMPT
BOND FUND, PREDECESSOR CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND AND
PREDECESSOR MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND EXCHANGED THEIR
SHARES FOR TRUST SHARES AND BKBSHARES OF THE GALAXY INTEMEDIATE TAX-EXEMPT BOND
FUND, GALAXY CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND AND GALAXY
MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND, RESPECTIVELY, AND (II)
SHAREHOLDERS OF THE PREDECESSOR FLORIDA MUNICIPAL BOND FUND EXCHANGED THEIR
SHARES FOR SHARES OF THE GALAXY FLORIDA MUNICIPAL BOND FUND. SHAREHOLDERS OF THE
PREDECESSOR INTERMEDIATE TAX-EXEMPT BOND FUND, PREDECESSOR CONNECTICUT
INTERMEDIATE MUNICIPAL BOND FUND AND PREDECESSOR MASSACHUSETTS MUNICIPAL BOND
FUND WHO PURCHASED THEIR SHARES THROUGH AN INVESTMENT MANAGEMENT, TRUST, CUSTODY
OR OTHER AGENCY RELATIONSHIP WITH BANKBOSTON, N.A. RECEIVED TRUST SHARES, AND
SHAREHOLDERS OF SUCH PREDECESSOR FUNDS WHO PURCHASED THEIR SHARES OTHER THAN
THROUGH AN INVESTMENT MANAGEMENT, TRUST, CUSTODY OR OTHER AGENCY RELATIONSHIP
WITH BANKBOSTON, N.A. RECEIVED BKBSHARES, OF THE GALAXY INTEMEDIATE TAX-EXEMPT
BOND FUND, GALAXY CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND AND GALAXY
MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND, RESPECTIVELY. THE TOTAL RETURNS
SHOWN ABOVE FOR TRUST SHARES OR SHARES OF THE INTERMEDIATE TAX-EXEMPT BOND FUND,
CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND, FLORIDA MUNICIPAL BOND FUND AND
MASSACHUSETTS INTEMEDIATE MUNICIPAL BOND FUND FOR PERIODS PRIOR TO JUNE 26, 2000
REPRESENT THE TOTAL RETURNS FOR THE RESPECTIVE PREDECESSOR FUNDS.
2
<PAGE>
PERFORMANCE AT-A-GLANCE
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS-- RETAIL A SHARES**
AS OF OCTOBER 31, 2000 1 YEAR 3 YEARS 5 YEARS LIFE OF FUND
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax-Exempt Bond Fund (INCEPTION DATE 12/30/91) 4.09% 2.64% 4.01% 5.48%
---------------------------------------------------------------------------------------------------------------------------------
Connecticut Municipal Bond Fund (INCEPTION DATE 3/16/93) 3.50 2.63 4.00 4.36
---------------------------------------------------------------------------------------------------------------------------------
Massachusetts Municipal Bond Fund (INCEPTION DATE 3/12/93) 4.24 2.60 3.93 4.20
---------------------------------------------------------------------------------------------------------------------------------
New Jersey Municipal Bond Fund (INCEPTION DATE 4/3/98) 3.60 N/A N/A 1.75
---------------------------------------------------------------------------------------------------------------------------------
New York Municipal Bond Fund (INCEPTION DATE 12/31/91) 4.86 2.81 4.11 5.28
---------------------------------------------------------------------------------------------------------------------------------
Rhode Island Municipal Bond Fund (INCEPTION DATE 12/20/94) 4.61 2.96 4.36 5.62
---------------------------------------------------------------------------------------------------------------------------------
Intermediate Tax-Exempt Bond Fund (INCEPTION DATE 6/26/00) N/A N/A N/A -0.60(DAGGER)
---------------------------------------------------------------------------------------------------------------------------------
Connecticut Intermediate
Municipal Bond Fund (INCEPTION DATE 6/26/00) N/A N/A N/A -0.66(DAGGER)
---------------------------------------------------------------------------------------------------------------------------------
Massachusetts Intermediate
Municipal Bond Fund (Inception date 6/26/00) N/A N/A N/A -0.52(DAGGER)
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS-- RETAIL B SHARES***
1 YEAR 1 YEAR 3 YEARS 3 YEARS LIFE OF FUND LIFE OF FUND
RETURN BEFORE RETURN AFTER RETURN BEFORE RETURN AFTER RETURN BEFORE RETURN AFTER
CONTINGENT CONTINGENT CONTINGENT CONTINGENT CONTINGENT CONTINGENT
DEFERRED SALES DEFERRED SALES DEFERRED SALES DEFERRED SALES DEFERRED SALES DEFERRED SALES
AS OF OCTOBER 31, 2000 CHARGE DEDUCTED CHARGE DEDUCTED* CHARGE DEDUCTED CHARGE DEDUCTED* CHARGE DEDUCTED CHARGE DEDUCTED*
-----------------------------------------------------------------------------------------------------------------------------------
Tax-Exempt Bond Fund
<S> <C> <C> <C> <C> <C> <C>
(INCEPTION DATE 3/4/96) 7.41% 2.41% 3.29% 2.38% 3.80% 3.62%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(DAGGER) Unannualized total returns.
* As if shares were redeemed at end of period.
** Return figures have been restated to include the effect of the maximum
3.75% front-end sales charge which became effective on December 1,
1995.
*** Retail B Shares are subject to a 5.00% contingent deferred sales charge
if shares are redeemed within the first year. The charge decreases to
4.00%, 3.00%, 3,00%, 2.00% and 1.00% for redemptions made during the
second through sixth years, respectively. Retail B Shares automatically
convert to Retail A Shares after six years. Total returns are from the
date of inception.
3
<PAGE>
PERFORMANCE AT-A-GLANCE (CONTINUED)
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS - BKB SHARES*
AS OF OCTOBER 31, 2000 1 YEAR 3 YEARS 5 YEARS LIFE OF FUND
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Rhode Island Municipal Bond Fund (INCEPTION DATE 6/19/00) N/A N/A N/A 3.81%**
---------------------------------------------------------------------------------------------------------------------------------
Intermediate Tax-Exempt Bond Fund (INCEPTION DATE 6/14/93) 8.33% 4.33% 5.26% 5.57
---------------------------------------------------------------------------------------------------------------------------------
Connecticut Intermediate
Municipal Bond Fund (INCEPTION DATE 8/14/94) 7.80 4.24 5.10 5.78
---------------------------------------------------------------------------------------------------------------------------------
Massachusetts Intermediate
Municipal Bond Fund (INCEPTION DATE 6/14/93) 7.63 4.21 5.00 5.03
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The Intermediate Tax-Exempt Bond Fund, Connecticut Intermediate Municipal
Bond Fund and Massachusetts Intermediate Municipal Bond Fund commenced
operations as separate portfolios (each a "Predecessor Fund") of the Boston
1784 Funds. On June 26, 2000, each Predecessor Fund was reorganized as a new
portfolio of The Galaxy Fund. Prior to the reorganization, each Predecessor
Fund offered and sold one series of shares. In connection with the
reorganization shareholders of the Predecessor Intermediate Tax-Exempt Bond
Fund, Predecessor Connecticut Intermediate Municipal Bond Fund and
Predecessor Massachusetts Intermediate Municipal Bond Fund exchanged their
shares for Trust Shares and BKB Shares of the Galaxy Intemediate Tax-Exempt
Bond Fund, Galaxy Connecticut Intermediate Municipal Bond Fund and Galaxy
Massachusetts Intermediate Municipal Bond Fund, respectively. Shareholders
of the Predecessor Intermediate Tax-Exempt Bond Fund, Predecessor
Connecticut Intermediate Municipal Bond Fund and Predecessor Massachusetts
Municipal Bond Fund who purchased their shares through an investment
management, trust, custody or other agency relationship with BankBoston,
N.A. received Trust Shares, and shareholders of such Predecessor Funds who
purchased their shares other than through an investment management, trust,
custody or other agency relationship with BankBoston, N.A. received BKB
Shares, of the Galaxy Intemediate Tax-Exempt Bond Fund, Galaxy Connecticut
Intermediate Municipal Bond Fund and Galaxy Massachusetts Intermediate
Municipal Bond Fund, respectively. The total returns shown above for BKB
Shares of the Intermediate Tax-Exempt Bond Fund, Connecticut Intermediate
Municipal Bond Fund and Massachusetts Intemediate Municipal Bond Fund for
periods prior to June 26, 2000 represent the total returns for the
respective Predecessor Funds.
** Unannualized total return.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. INVESTMENT RETURNS AND
PRINCIPAL VALUES WILL VARY WITH MARKET CONDITIONS SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
INVESTMENT ADVISOR AND/OR ITS AFFILIATES AND/OR THE ADMINISTRATOR IS PRESENTLY
WAIVING FEES AND/OR REIMBURSING EXPENSES AND MAY REVISE OR DISCONTINUE SUCH
PRACTICE AT ANY TIME. WITHOUT SUCH WAIVERS AND/OR REIMBURSEMENTS, PERFORMANCE
WOULD BE LOWER. TOTAL RETURN FIGURES IN THIS REPORT INCLUDE CHANGES IN SHARE
PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS AND INCLUDE THE
DEDUCTION OF ANY SALES CHARGES, WHERE APPLICABLE, UNLESS OTHERWISE INDICATED.
4
<PAGE>
PORTFOLIO REVIEWS
[GRAPHIC OMITTED: GALAXY LOGO]
GALAXY
FUNDS
[BEGIN SIDEBAR]
THE TAX-EXEMPT BOND FUNDS ARE MANAGED BY THE MUNICIPAL BOND PORTFOLIO MANAGEMENT
TEAM OF FLEET INVESTMENT ADVISORS, INC.
[END SIDEBAR]
PORTFOLIO STRATEGY REVIEW
BY DAVID THOMPSON, BRIAN MCGREEVY, SUSAN SANDERSON AND WAYNE FITZGERALD
Over the past 12 months, the active management process used with the Galaxy
Tax-Exempt Bond Funds has focused on enhancing current tax-free income for
shareholders, improving liquidity, and positioning the Funds to participate
fully in market rallies. To this end, the Funds have improved the coupon and
call protection of their investments, taken advantage of tax-loss swapping
opportunities, and improved overall income production by purchasing high-coupon,
high-quality bonds with intermediate- to longer-term maturities. The Funds have
also tried to improve liquidity and principal stability by emphasizing sector
and geographic diversity. In doing so, we focused on essential-purpose, general
obligation and revenue bonds in states with high income tax rates -- in order to
ensure tradability and strong secondary market support.
MAXIMIZING MARKET CHANGES
Consistent with the market cycle, the Funds remained conservative into the
first quarter of 2000, emphasizing cash and low-volatility investments. After
the market correction in April and May made municipal prices more attractive, we
became more aggressive -- extending maturities by rolling out on the yield
curve, in anticipation of lower yields by year end.
In keeping with their investment objectives as intermediate-term bond
funds, the Galaxy Intermediate Tax-Exempt Bond Fund, the Galaxy Connecticut
Intermediate Municipal Bond Fund and the Galaxy Massachusetts Intermediate
Municipal Bond Fund focused their purchases on issues with maturities of 7 to 12
years. For the longer-term funds -- including the Galaxy Tax-Exempt Bond Fund,
the Galaxy New Jersey Municipal Bond Fund, the Galaxy New York Municipal Bond
Fund, the Galaxy Connecticut Municipal Bond Fund, the Galaxy Massachusetts
Municipal Bond Fund, the Galaxy Rhode Island Municipal Bond Fund and the Galaxy
Florida Municipal Bond Fund -- we emphasized the purchase of issues with
maturities of 12 to 30 years. This strategy helped to optimize current tax-free
income and ensure a competitive total return.
Consistent with the objectives of the state specific funds, we focused on
buying bonds whose income was exempt from both state and federal income taxes.
Limited supplies made this task somewhat more difficult in the Galaxy
Connecticut Municipal Bond Fund, the Connecticut Intermediate Municipal Bond
Fund, the Galaxy Rhode Island Municipal Bond Fund and the Galaxy Florida
Municipal Bond Fund.
NEW OPPORTUNITIES
Looking forward, we believe that technical and fundamental factors should
support the prospects for lower bond yields in coming months, with minimal
downside risk. We expect the municipal yield curve to flatten further, as
longer-maturities outperform shorter-term issues. The longer end of the yield
curve should be biased downward, supported by the persistent use of the federal
budget surplus to buy back Treasury bonds. Short-term yields, by contrast,
should remain locked at current levels, with the Fed unlikely to ease interest
rates before the first quarter of 2001.
Our investment management process will respond accordingly. We believe the
Funds are well positioned to fully participate in future market rallies. If
interest rates are to decline, there will need to be strong evidence of a
persistent economic slowdown (particularly in consumer spending) and constrained
inflationary pressures (particularly in wages and energy costs).
The impact of the presidential elections on municipal bonds, in our view,
will be minimal and will evolve over the next two to three years. With the
extremely tight balance between political parties in the House and Senate, and a
virtual tie in the presidential race, we do not expect major changes in either
tax or spending polices that would affect municipal bonds adversely.
5
<PAGE>
PORTFOLIO REVIEWS
GALAXY TAX-EXEMPT BOND FUND
Trust Shares of the Galaxy Tax-Exempt Bond Fund earned a total return of
8.32% for the 12-months ended October 31, 2000. Over the same time, Retail A
Shares of the Fund had a total return of 8.12% before deducting the maximum
3.75% front-end sales charge, and Retail B Shares of the Fund had a total return
of 7.41% before deducting the maximum 5.00% contingent deferred sales charge.
(Please see the charts on page 3 for total returns after deducting the front-end
sales charge and for total returns after deducting the contingent deferred sales
charge.)
Over the same time, the average general municipal bond fund followed by
Lipper, a mutual fund performance tracking service, had a total return of 7.36%,
and the Lehman Brothers Municipal Bond Index had a total return of 8.51%.
On October 31, 2000, the Fund's Trust Shares had a 30-day Securities and
Exchange Commission ("SEC") annualized yield of 4.52%. On the same date, Retail
A Shares of the Fund had a 30-day SEC annualized yield of 4.15%, and Retail B
Shares had a 30-day SEC annualized yield of 3.67%. For shareholders in the 39.6%
federal income tax bracket, these equaled taxable yields of 7.45%, 6.84%, and
6.06% respectively.
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY TAX-EXEMPT BOND FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF OCTOBER 31, 2000
NORTH CENTRAL 15%
PACIFIC 7%
OTHER TERRITORIES 2%
SOUTH 30%
MOUNTAIN 8%
EAST 38%
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY TAX-EXEMPT BOND FUND
GROWTH OF $10,000 INVESTMENT*
LEHMAN GALAXY GALAXY GALAXY
BROTHERS TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
MUNICIPAL BOND FUND BOND FUND BOND FUND
BOND INDEX RETAIL A SHARES TRUST SHARES BKB SHARES
12/30/91 10000 9625 10000
12/30/92 10582 10062 10455
12/30/93 12072 11635 12089
12/30/94 11546 11082 11515
12/30/95 13213 12657 13084 10000
12/30/96 13967 13167 13742 9615
10/31/97 15465 14153 14807 10398
10/31/98 16705 15229 15970 11250
10/31/99 16409 14817 15450 10889
10/31/2000 17805 16020 16735 11801
*SINCE INCEPTION ON 12/30/91 FOR TRUST AND RETAIL A SHARES. SINCE INCEPTION ON
3/4/96 FOR RETAIL B SHARES. PERFORMANCE FIGURES FOR RETAIL A SHARES INCLUDE
THE EFFECT OF THE MAXIMUM 3.75% FRONT-END SALES CHARGE. PERFORMANCE FIGURES FOR
RETAIL B SHARES REFLECT THE DEDUCTION OF THE 2.00% CONTINGENT DEFERRED SALES
CHARGE (APPLICABLE TO SHARES REDEEMED DURING THE FIFTH YEAR AFTER PURCHASE) AS
IF SHARES WERE REDEEMED ON OCTOBER 31, 2000. THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX IS AN UNMANAGED INDEX IN WHICH INVESTORS CANNOT INVEST. RESULTS FOR THE
INDEX DO NOT REFLECT INVESTMENT MANAGEMENT FEES AND OTHER EXPENSES INCURRED BY
THE FUND.
6
<PAGE>
PORTFOLIO REVIEWS
GALAXY CONNECTICUT MUNICIPAL BOND FUND
For the 12-month reporting period, Trust Shares of the Galaxy Connecticut
Municipal Bond Fund earned a total return of 7.71%. Before deducting the maximum
3.75% front-end sales charge, Retail A Shares of the Fund earned a total return
of 7.50%. (Please see the chart on page 3 for total returns after deducting the
front-end sales charge.) During the same period, the average Connecticut
municipal bond fund tracked by Lipper returned 7.20% and the Lehman Brothers
Municipal Bond Index returned 8.51%.
On October 31, 2000, the Fund's Trust Shares had a 30-day SEC annualized
yield of 4.41%. On the same date Retail A Shares of the Fund had a 30-day SEC
annualized yield of 4.04%. These equal taxable yields of 7.65% and 7.02%,
respectively, for shareholders in the 39.6% federal income tax bracket who live
in the State of Connecticut.
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY CONNECTICUT MUNICIPAL BOND FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF OCTOBER 31, 2000
CASH EQUIVALENTS & NET OTHER ASSETS AND LIABILITIES 4%
CONNECTICUT 86%
PUERTO RICO 6%
OTHER TERRITORIES 4%
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY CONNECTICUT MUNICIPAL BOND FUND
GROWTH OF $10,000 INVESTMENT*
GALAXY GALAXY
LEHMAN CONNECTICUT CONNECTICUT
BROTHERS MUNICIPAL MUNICIPAL
MUNICIPAL BOND FUND BOND FUND
BOND INDEX RETAIL A SHARES TRUST SHARES
3/16/93 10000 9625 10000
10/31/93 10697 10183 10580
10/31/94 10231 9532 9902
10/31/95 12594 10956 11413
10/31/96 12952 11429 11930
10/31/97 14776 12327 12891
10/31/98 15961 13261 13898
10/31/99 15678 12880 13526
10/31/2000 17012 13846 14568
*SINCE INCEPTION ON 3/16/93. PERFORMANCE FIGURES FOR RETAIL A SHARES INCLUDE
THE EFFECT OF THE MAXIMUM 3.75% FRONT-END SALES CHARGE. THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX IS AN UNMANAGED INDEX IN WHICH INVESTORS CANNOT INVEST.
RESULTS FOR THE INDEX DO NOT REFLECT INVESTMENT MANAGEMENT FEES AND OTHER
EXPENSES INCURRED BY THE FUND. RESULTS FOR THE INDEX ARE CALCULATED SINCE
3/31/93 BECAUSE THE INDEX RETURNS ARE CALCULATED AT MONTH-END ONLY.
7
<PAGE>
PORTFOLIO REVIEWS
GALAXY MASSACHUSETTS MUNICIPAL BOND FUND
For the 12-month reporting period, Trust Shares of the Galaxy Massachusetts
Municipal Bond Fund earned a total return of 8.47%. Over the same time, Retail A
Shares of the Fund had a total return of 8.30% before deducting the maximum
3.75% front-end sales charge. (Please see the chart on page 3 for total returns
after deducting the front-end sales charge.)
These total returns compared to 7.54% for the average Massachusetts
municipal bond fund tracked by Lipper and 8.51% for the benchmark Lehman
Brothers Municipal Bond Index.
On October 31, 2000, the Fund's Trust Shares had a 30-day SEC annualized
yield of 4.66% and its Retail A Shares had a 30-day SEC annualized yield of
4.35%. These equaled taxable yields of 8.21% and 7.65% for shareholders in the
39.6% federal income tax bracket who live in the Commonwealth of Massachusetts.
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY MASSACHUSETTS MUNICIPAL BOND FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF OCTOBER 31, 2000
CASH EQUIVALENTS & NET OTHER ASSETS AND LIABILITIES 3%
MASSACHUSETTS 94%
PUERTO RICO 3%
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY MASSACHUSETTS MUNICIPAL BOND FUND
GROWTH OF $10,000 INVESTMENT*
GALAXY GALAXY
LEHMAN MASSACHUSETTS MASSACHUSETTS
BROTHERS MUNICIPAL MUNICIPAL
MUNICIPAL BOND FUND BOND FUND
BOND INDEX RETAIL A SHARES TRUST SHARES
3/12/93 10000 9625 10000
10/31/93 10584 10146 10542
10/31/94 10231 9491 9861
10/31/95 12594 10868 11312
10/31/96 12952 11309 11795
10/31/97 14776 12204 12746
10/31/98 15961 13086 13692
10/31/99 15678 12647 13257
10/31/2000 17012 13696 14379
*SINCE INCEPTION ON 3/12/93. PERFORMANCE FIGURES FOR RETAIL A SHARES INCLUDE
THE EFFECT OF THE MAXIMUM 3.75% FRONT-END SALES CHARGE. THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX IS AN UNMANAGED INDEX IN WHICH INVESTORS CANNOT INVEST.
RESULTS FOR THE INDEX DO NOT REFLECT INVESTMENT MANAGEMENT FEES AND OTHER
EXPENSES INCURRED BY THE FUND. RESULTS FOR THE INDEX ARE CALCULATED SINCE
3/31/93 BECAUSE THE INDEX RETURNS ARE CALCULATED AT MONTH END.
8
<PAGE>
PORTFOLIO REVIEWS
GALAXY NEW JERSEY MUNICIPAL BOND FUND
For the 12 months ended October 31, 2000, Trust Shares of the Galaxy New
Jersey Municipal Bond Fund had a total return of 7.74%. Over the same time,
Retail A Shares of the Fund had a total return of 7.61% before deducting the
maximum 3.75% front-end sales charge. (Please see the chart on page 3 for total
returns after deducting the front-end sales charge.) The average New Jersey
municipal bond fund tracked by Lipper had a total return of 7.16% for the same
period, and the Lehman Brothers Municipal Bond Index had a total return of
8.51%.
On October 31, 2000, the Fund's Trust Shares had a 30-day SECannualized
yield of 4.26%. On the same day, the Fund's Retail A Shares had a 30-day SEC
annualized yield of 4.22%. These equaled taxable yields, of 7.52% and 7.43%,
respectively for shareholders in the 39.6% Federal income tax bracket who live
in the State of New Jersey
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY NEW JERSEY MUNICIPAL BOND FUND DISTRIBUTION OF TOTAL NET ASSETS AS OF
OCTOBER 31, 2000
CASH EQUIVALENTS & NET OTHER ASSETS AND LIABILITIES 3%
OTHER TERRITORIES 3%
NEW JERSEY 87%
PUERTO RICO 7%
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY NEW JERSEY MUNICIPAL BOND FUND
GROWTH OF $10,000 INVESTMENT*
GALAXY GALAXY
LEHMAN NEW JERSEY NEW JERSEY
BROTHERS MUNICIPAL MUNICIPAL
MUNICIPAL BOND FUND BOND FUND
BOND INDEX RETAIL A SHARES TRUST SHARES
4/3/98 10000 9628 10000
10/31/98 10464 10043 10448
10/31/99 10279 9718 10128
10/31/2000 11154 10458 10912
*SINCE INCEPTION ON 4/3/98. PERFORMANCE FIGURES FOR RETAIL A SHARES INCLUDE
THE EFFECT OF THE MAXIMUM 3.75% FRONT-END SALES CHARGE. THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX IS AN UNMANAGED INDEX IN WHICH INVESTORS CANNOT INVEST.
RESULTS FOR THE INDEX DO NOT REFLECT INVESTMENT MANAGEMENT FEES AND OTHER
EXPENSES INCURRED BY THE FUND. RESULTS FOR THE INDEX ARE CALCULATED SINCE
4/30/98 BECAUSE THE INDEX RETURNS ARE CALCULATED AT MONTH-END ONLY.
9
<PAGE>
PORTFOLIO REVIEWS
GALAXY NEW YORK MUNICIPAL BOND FUND
For the 12-months ended October 31, 2000, Trust Shares of the Galaxy New
York Municipal Bond Fund had a total return of 9.12%. During the same time,
Retail A Shares of the Fund returned 8.93% before deducting the maximum 3.75%
front-end sales charge. (Please see the chart on page 3 for total returns after
deducting the front-end sales charge.) Over this period the average New York
tax-exempt bond fund tracked by Lipper returned 7.91%, and the Lehman Brothers
Municipal Bond Index returned 8.51%.
On October 31, 2000, the Fund's Trust Shares had a 30-day SEC annualized
yield of 4.46%. On the same date, the Fund's Retail A Shares had a 30-day SEC
annualized yield of 4.10%. These are the same as taxable yields of 7.87% and
7.27%, respectively, for shareholders in the 39.6% federal income tax bracket
who live in the State of New York.
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY NEW YORK MUNICIPAL BOND FUND DISTRIBUTION OF TOTAL NET ASSETS AS OF
OCTOBER 31, 2000
OTHER TERRITORIES 2%
LOCAL MUNICIPAL BONDS 53%
STATE MUNICIPAL BONDS 40%
CASH EQUIVALENTS & NET OTHER ASSETS AND LIABILITIES 5%
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY NEW YORK MUNICIPAL BOND FUND
GROWTH OF $10,000 INVESTMENT*
GALAXY GALAXY
LEHMAN NEW YORK NEW YORK
BROTHERS MUNICIPAL MUNICIPAL
MUNICIPAL BOND FUND BOND FUND
BOND INDEX RETAIL A SHARES TRUST SHARES
12/31/91 10000 9625 10000
1992 10582 9993 10383
1993 12072 11558 12009
1994 11546 10870 11294
1995 13213 12395 12901
1996 13967 12928 13488
10/31/97 15465 13954 14590
10/31/98 16705 15021 15731
10/31/99 16409 14462 15175
10/31/2000 17805 15753 16558
*SINCE INCEPTION ON 12/30/91. PERFORMANCE FIGURES FOR RETAIL A SHARES INCLUDE
THE EFFECT OF THE MAXIMUM 3.75% FRONT-END SALES CHARGE. THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX IS AN UNMANAGED INDEX IN WHICH INVESTORS CANNOT INVEST.
RESULTS FOR THE INDEX DO NOT REFLECT INVESTMENT MANAGEMENT FEES AND OTHER
EXPENSES INCURRED BY THE FUND.
10
<PAGE>
PORTFOLIO REVIEWS
GALAXY RHODE ISLAND MUNICIPAL BOND FUND
For the period June 19, 2000 (date of initial issuance) through October 31,
2000, Trust Shares of the Galaxy Rhode Island Municipal Bond Fund earned a total
return of 3.82%. During the 12-months ended October 31, 2000, Retail A Shares of
the Fund earned a total return of 8.65% before deducting the maximum 3.75%
front-end sales charge. (Please see the chart on page 3 for total returns after
deducting the front-end sales charge.) For the period June 19, 2000 (date of
initial issuance) through October 31, 2000 BKBShares earned a total return of
3.81%. Over the same time the average Rhode Island municipal bond fund tracked
by Lipper had a total return of 6.84%, and the Lehman Brothers Municipal Bond
Index had a total return of 8.51%.
On October 31, 2000, the Fund's Trust Shares had a 30-day SEC annualized
yield of 4.43%. On the same date, Retail A Shares and BKBShares of the Fund had
30-day SECannualized yields of 4.41% and 4.44%, respectively. These equaled
taxable yields of 8.25%, 8.19% and 8.19%, respectively for shareholders in the
39.6% federal income tax bracket who live in the State of Rhode Island.
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY RHODE ISLAND MUNICIPAL BOND FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF OCTOBER 31, 2000
CASH EQUIVALENTS & NET OTHER ASSETS AND LIABILITIES 2%
RHODE ISLAND 84%
OTHER TERRITORIES 14%
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY RHODE ISLAND MUNICIPAL BOND FUND
GROWTH OF $10,000 INVESTMENT*
GALAXY GALAXY GALAXY
LEHMAN RHODE ISLAND RHODE ISLAND RHODE ISLAND
BROTHERS MUNICIPAL MUNICIPAL MUNICIPAL
MUNICIPAL BOND FUND BOND FUND BOND FUND
BOND INDEX RETAIL A SHARES TRUST SHARES BKB SHARES
12/20/94 10000 9625
1995 11445 10711
1996 12050 11270
10/31/97 12507 12146
10/31/98 13510 13040
10/31/99 13271 12683
6/26/2000 14024 13319 10000 10000
10/31/2000 14400 13780 10382 10381
*SINCE INCEPTION ON 12/20/94 FOR RETAIL ASHARES. SINCE INCEPTION ON
6/19/2000 FOR TRUST AND BKBSHARES. PERFORMANCE FIGURES FOR RETAIL A SHARES
INCLUDE THE EFFECT OF THE MAXIMUM 3.75% FRONT-END SALES CHARGE. THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX IS AN UNMANAGED INDEX IN WHICH INVESTORS CANNOT
INVEST. RESULTS FOR THE INDEX DO NOT REFLECT INVESTMENT MANAGEMENT FEES AND
OTHER EXPENSES INCURRED BY THE FUND. RESULTS FOR THE INDEX ARE CALCULATED SINCE
12/31/94 BECAUSE THE INDEX RETURNS ARE CALCULATED AT MONTH-END ONLY.
GALAXY INTERMEDIATE TAX-EXEMPT BOND FUND
For the 12-months ended October 31, 2000, Trust Shares of the Galaxy
Intermediate Tax-Exempt Bond Fund (including shares of the Predecessor Fund)
earned a total return of 8.34%. During the period June 26, 2000 (date of initial
issuance) through October 31, 2000, Retail A Shares of the Fund earned a total
return of 3.24%, before deducting the maximum 3.75% front-end sales charge.
(Please see the chart on page 3 for total returns after deducting the front-end
sales charge.) For the 12-months ended October 31, 2000, BKBShares of the Fund
(including shares of the Predecessor Fund) earned a total return of 8.33%. Over
the same time the average intermediate municipal debt fund tracked by Lipper had
a total return of 6.21%, and the Lehman Brothers Quality Intermediate 3-15 Year
Blend Index had a total return of 7.45%.
On October 31, 2000, the Fund's Trust, Retail A Shares and BKBShares had
30-day SEC annualized yields of 4.29%, 4.10% and 4.28%, respectively. These
equaled taxable yields of 7.15%, 6.77% and 7.09%, respectively for shareholders
in the 39.6% federal income tax bracket.
11
<PAGE>
PORTFOLIO REVIEWS
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY INTERMEDIATE TAX-EXEMPT BOND FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF OCTOBER 31, 2000
EAST 37%
SOUTH 26%
PACIFIC 11%
NORTH CENTRAL 11%
OTHER TERRITORIES 8%
MOUNTAIN 7%
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
<TABLE>
<CAPTION>
GALAXY INTERMEDIATE TAX-EXEMPT BOND FUND
GROWTH OF $10,000 INVESTMENT*
LEHMAN BROTHERS LEHMAN GALAXY GALAXY GALAXY
QUALITY BROTHERS INTERMEDIATE INTERMEDIATE INTERMEDIATE
INTERMEDIATE 7-YEAR TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
3-15 YEAR MUNICIPAL BOND FUND BOND FUND BOND FUND
BLEND INDEX BOND INDEX RETAIL A SHARES TRUST SHARES BKB SHARES
<S> <C> <C> <C> <C> <C>
6/14/93 10000 10000 10000 10000 10/31/93 10334 10506 10515 10515 10/31/94 10068
10308 10292 10292 10/31/95 11397 11578 11547 11567 10/31/96 11975 12118 12132
12312 10/31/97 12923 13022 13142 13142 10/31/98 13904 13985 14182 14182 10/31/99
13857 13986 13776 13776 6/26/2000 14446 14780 10000 14029 14458 10/31/2000 14517
14436 9940 14924 14923
</TABLE>
*SINCE INCEPTION ON 6/26/2000 FOR RETAIL A SHARES. SINCE INCEPTION ON
6/14/93 FOR TRUST AND BKBSHARES. PERFORMANCE FIGURES FOR RETAIL A SHARES
INCLUDE THE EFFECT OF THE MAXIMUM 3.75% FRONT-END SALES CHARGE. THE LEHMAN
BROTHERS QUALITY INTERMEDIATE 3-15 YEAR BLEND INDEX AND THE LEHMAN BROTHERS
7-YEAR MUNICIPAL BOND INDEX ARE UNMANAGED INDICES IN WHICH INVESTORS CANNOT
INVEST. RESULTS FOR THE INDICES DO NOT REFLECT INVESTMENT MANAGEMENT FEES
AND OTHER EXPENSES INCURRED BY THE FUND. RESULTS FOR THE INDICES ARE
CALCULATED SINCE 5/31/93 BECAUSE THE INDICES RETURNS ARE CALCULATED AT
MONTH-END ONLY.
GALAXY CONNECTICUT INTERMEDIATE
MUNICIPAL BOND FUND
For the 12-months ended October 31, 2000,Trust Shares of the Galaxy
Connecticut Intermediate Municipal Bond Fund (including shares of the
Predecessor Fund) earned a total return of 7.81%. For the period June 26, 2000
(date of initial issuance) through October 31, 2000, Retail A Shares earned a
total return of 3.23% before deducting the maximum 3.75% front-end sales charge.
(Please see the chart on page 3 for total returns after deducting the front-end
sales charge.) For the 12-months ended October 31, 2000, BKBShares of the Fund
(including shares of the Predecessor Fund) earned a total return of 7.80%. Over
the same time, the average Connecticut municipal bond fund tracked by Lipper had
a total return of 7.20%, and the Lehman Brothers Quality Intermediate 3-15 Year
Blend Index had a total return of 7.45%.
On October 31, 2000, the Fund's Trust, Retail A and BKB Shares had 30-day
SEC annualized yields of 4.24%, 4.08% and 4.28%, respectively. These equaled
taxable yields of 7.44%, 7.14% and 7.33%, respectively, for shareholders in the
39.6% federal income tax bracket who live in the State of Connecticut.
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND DISTRIBUTION OF TOTAL NET
ASSETS AS OF OCTOBER 31, 2000
CASH EQUIVALENTS & NET OTHER ASSETS AND LIABILITIES 1%
CONNECTICUT 82%
PUERTO RICO 14%
OTHER TERRITORIES 3%
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
<TABLE>
<CAPTION>
GALAXY CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
GROWTH OF $10,000 INVESTMENT*
LEHMAN GALAXY GALAXY GALAXY
BROTHERS LEHMAN CONNECTICUT CONNECTICUT CONNECTICUT
QUALITY BROTHERS INTERMEDIATE INTERMEDIATE INTERMEDIATE
INTERMEDIATE 7-YEAR MUNICIPAL MUNICIPAL MUNICIPAL
3-15 YEAR MUNICIPAL BOND FUND BOND FUND BOND FUND
BLEND INDEX BOND INDEX RETAIL A SHARES TRUST SHARES BKB SHARES
<S> <C> <C> <C> <C> <C>
8/1/94 10000 10000 10000 10000
10/31/94 9806 9805 9826 9826
10/31/95 11100 11014 11083 11083
10/31/96 11663 11527 11635 11635
10/31/97 12587 12387 12546 12546
10/31/98 13542 13303 13546 13546
10/31/99 13496 13034 13182 13182
6/26/2000 14069 13969 10000 13777 13777
10/31/2000 14517 14436 9934 14212 14211
</TABLE>
*SINCE INCEPTION ON 8/1/94 FOR TRUST AND BKB SHARES. SINCE INCEPTION ON
6/26/2000 FOR RETAIL A SHARES. PERFORMANCE FIGURES FOR RETAIL A SHARES INCLUDE
THE EFFECT OF THE MAXIMUM 3.75% FRONT-END SALES CHARGE. THE LEHMAN BROTHERS
QUALITY INTERMEDIATE 3-15 YEAR BLEND INDEX AND THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX ARE UNMANAGED INDICES IN WHICH INVESTORS CANNOT INVEST.
RESULTS FOR THE INDICES DO NOT REFLECT INVESTMENT MANAGEMENT FEES AND OTHER
EXPENSES INCURRED BY THE FUND. RESULTS FOR THE INDICES ARE CALCULATED SINCE
7/31/94 BECAUSE THE INDICES RETURNS ARE CALCULATED AT MONTH-END ONLY.
12
<PAGE>
PORTFOLIO REVIEWS
GALAXY FLORIDA MUNICIPAL BOND FUND
For the 12-months ended October 31, 2000, Shares of the Galaxy Florida
Municipal Bond Fund (including shares of the Predecessor Fund) earned a total
return of 7.18%. Over the same time, the average Florida municipal bond fund
tracked by Lipper had a total return of 6.84%, and the Lehman Brothers Quality
Intermediate 3-15 Year Blend Index had a total return of 7.45%.
On October 31, 2000, the Fund's Shares had a 30-day SEC annualized yield of
4.03%. This equaled a taxable yield of 6.77% for shareholders in the 39.6%
federal income tax bracket who live in the State of Florida.
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY FLORIDA MUNICIPAL BOND FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF OCTOBER 31, 2000
CASH EQUIVALENTS & NET OTHER ASSETS AND LIABILITIES 5%
FLORIDA 90%
OTHER TERRITORIES 5%
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY FLORIDA MUNICIPAL BOND FUND
GROWTH OF $10,000 INVESTMENT*
LEHMAN LEHMAN
QUALITY BROTHERS GALAXY
INTERMEDIATE 7-YEAR FLORIDA
3-15 YEAR MUNICIPAL MUNICIPAL
BLEND INDEX BOND INDEX BOND FUND
6/30/97 10000 10000 10000
10/31/97 10332 10328 10344
10/31/98 11116 11091 11098
10/31/99 11079 11092 10825
10/31/2000 11917 12036 11602
*SINCE INCEPTION ON 6/30/97. THE LEHMAN BROTHERS QUALITY INTERMEDIATE 3-15
YEAR BLEND INDEX AND THE LEHMAN BROTHERS 7-YEAR MUNICIPAL BOND INDEX ARE
UNMANAGED INDICES IN WHICH INVESTORS CANNOT INVEST. RESULTS FOR THE INDICES DO
NOT REFLECT INVESTMENT MANAGEMENT FEES AND OTHER EXPENSES INCURRED BY THE FUND.
RESULTS FOR THE INDICES ARE CALCULATED SINCE 5/31/97 BECAUSE THE INDICES
RETURNS ARE CALCULATED AT MONTH-END ONLY.
13
<PAGE>
PORTFOLIO REVIEWS
GALAXY MASSACHUSETTS INTERMEDIATE
MUNICIPAL BOND FUND
For the 12-months ended October 31, 2000, Trust Shares of the Galaxy
Massachusetts Intermediate Municipal Bond Fund (including shares of the
Predecessor Fund) earned a total return of 7.64%. For the period June 26, 2000
(date of initial issuance) through October 31, 2000, Retail A Shares of the Fund
earned a total return of 3.36% before deducting the maximum 3.75% front-end
sales charge. (Please see the chart on page 3 for total returns after deducting
the front-end sales charge.) For the 12-months ended October 31, 2000, BKBShares
of the Fund (inculding shares of the Predecessor Fund) earned a total return of
7.63%. Over the same time, the average Massachusetts municipal bond fund tracked
by Lipper had a total return of 7.54%, and the Lehman Brothers Quality
Intermediate 3-15 Year Blend Index had a total return of 7.45%.
On October 31, 2000, the Fund's Trust, Retail A and BKB Shares had 30-day
SEC annualized yields of 4.23%, 4.09% and 4.24%, respectively. These equaled
taxable yields of 7.53%, 7.23% and 7.46%, respectively, for shareholders in the
39.6% federal income tax bracket who live in the Commonwealth of Massachusetts.
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
GALAXY MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND DISTRIBUTION OF TOTAL NET
ASSETS AS OF OCTOBER 31, 2000
CASH EQUIVALENTS & NET OTHER ASSETS AND LIABILITIES 2%
MASSACHUSETTS 93%
OTHER TERRITORIES 5%
[GRAPHIC OMITTED: EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
<TABLE>
<CAPTION>
GALAXY MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
GROWTH OF $10,000 INVESTMENT*
LEHMAN GALAXY GALAXY GALAXY
BROTHERS LEHMAN MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS
QUALITY BROTHERS INTERMEDIATE INTERMEDIATE INTERMEDIATE
INTERMEDIATE 7-YEAR MUNICIPAL MUNICIPAL MUNICIPAL
3-15 YEAR MUNICIPAL BOND FUND BOND FUND BOND FUND
BLEND INDEX BOND INDEX RETAIL A SHARES TRUST SHARES BKB SHARES
<S> <C> <C> <C> <C> <C>
6/14/93 10000 10000 10000 10000
10/31/93 10334 10506 10579 10579
10/31/94 10068 10308 10096 10096
10/31/95 11397 11578 11253 11253
10/31/96 11975 12118 11741 11741
10/31/97 12923 13022 12692 12692
10/31/98 13904 13985 13617 13617
10/31/99 13857 13966 13344 13344
6/26/2000 14446 14780 10000 13935 14395
10/31/2000 14905 15177p 9948 14364 14363
</TABLE>
*SINCE INCEPTION ON 6/14/93 FOR TRUST AND BKBSHARES. SINCE INCEPTION ON
6/26/00 FOR RETAIL A SHARES. PERFORMANCE FIGURES FOR RETAIL A SHARES INCLUDE
THE EFFECT OF THE MAXIMUM 3.75% FRONT-END SALES CHARGE. THE LEHMAN BROTHERS
QUALITY INTERMEDIATE 3-5 YEAR BLEND INDEX AND THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX ARE UNMANAGED INDICES IN WHICH INVESTORS CANNOT INVEST.
RESULTS FOR THE INDICES DO NOT REFLECT INVESTMENT MANAGEMENT FEES AND OTHER
EXPENSES INCURRED BY THE FUND. RESULTS FOR THE INDICES ARE CALCULATED SINCE
5/31/93 BECAUSE THE INDICES RETURNS ARE CALCULATED AT MONTH-END ONLY.
14
<PAGE>
SHAREHOLDER SERVICES
[BEGIN SIDEBAR]
"A WELL-BALANCED ASSET ALLOCATION PLAN MAY HELP TO CONTROL YOUR RISK WHILE
PURSUING YOUR GOALS."
[END SIDEBAR]
AUTOMATIC INVESTMENT PROGRAM
The Golden Rule of investing is "pay yourself first." That is easy to do with
Galaxy's Automatic Investment Program. For as little as $50 per month deducted
directly from your checking, savings or bank money market account, you can
consistently and conveniently add to your Galaxy investment. When you establish
an Automatic Investment Program, the $2,500 initial investment requirement for
Galaxy is waived. Of course, such a program does not assure a profit and does
not protect against loss in a declining market.
DIVERSIFICATION
A fundamental investment practice is "diversification." A well-balanced asset
allocation plan may help to control your risk while pursuing your goals. Many
mutual funds offer a low-cost way to diversify your investments while you
benefit from professional management. Galaxy's comprehensive array of investment
choices can be used in combination to match the needs of nearly everyone.
EXCHANGE PRIVILEGES
As your investment needs change, you can conveniently exchange your shares in
one Fund for shares in another Fund at no cost (as long as you exchange within
the same share class).
CONSOLIDATED STATEMENTS
If you hold your shares directly with the Galaxy Funds, you will receive a
consolidated statement from Galaxy on a quarterly basis. If your Galaxy Shares
are held in a brokerage account, your Galaxy Funds will appear on your brokerage
Statement.
YOUR FINANCIAL ADVISOR:
Your financial advisor can discuss the Galaxy Funds with you and how they may
help you to achieve your financial goals. Please see your financial advisor if
you have any questions about this report or if you have any questions about your
account.
24-HOUR ACCESS TO REGISTERED REPRESENTATIVES
24 hours a day, seven days a week, 365 days a year, we are ready and available
to help. Our toll-free telephone lines offer round-the-clock access to Fund
information and services. Call toll-free 1-877-BUY-GALAXY (1-877-289-4252) for
information on initial purchases and current performance.
-------------------------------------------------------------------------------
CERTAIN SHAREHOLDER SERVICES MAY NOT BE AVAILABLE TO TRUST, PRIME A AND PRIME B
SHARE INVESTORS. PLEASE CONSULT YOUR FUND PROSPECTUS. SHARES OF THE FUNDS ARE
DISTRIBUTED THROUGH PROVIDENT DISTRIBUTORS, INC., MEMBER NASD AND SIPC.
15
<PAGE>
SHAREHOLDER INFORMATION
[BEGIN SIDEBAR]
TRUSTEES
AND
EXECUTIVE OFFICERS
Dwight E. Vicks, Jr.
CHAIRMAN AND TRUSTEE
John T. O'Neill
PRESIDENT, TREASURER
AND TRUSTEE
Louis DeThomasis,
F.S.C., Ph.D.
TRUSTEE
Donald B. Miller
TRUSTEE
James M. Seed
Trustee
Bradford S. Wellman
TRUSTEE
William Greilich
VICE PRESIDENT
W. Bruce
McConnel, Esq.
SECRETARY
INVESTMENT ADVISOR
Fleet Investment
Advisors Inc.
100 Federal Street
Boston, MA 02110
DISTRIBUTOR
Provident Distributors, Inc.
3200 Horizon Drive
King of Prussia
Pennsylvania 19406
ADMINISTRATOR
PFPC Inc.
4400 Computer Drive
Westborough,
Massachusetts 01581-5108
AUDITOR
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
LEGAL COUNSEL
Drinker Biddle & Reath LLP
One Logan Square
18th and Cherry Streets
Philadelphia, PA 19103-6996
[END SIDEBAR]
This report is submitted for the general information of shareholders of The
Galaxy Fund. It is not authorized for distribution to prospective investors
unless accompanied or preceded by an effective prospectus for each Fund of The
Galaxy Fund, which contains more information concerning the investment policies
and expenses of the Funds as well as other pertinent information. For complete
information, and before making an investment decision on any of the Funds of The
Galaxy Fund, you should request a prospectus from Provident Distributors, Inc.
by calling toll-free 1-877-BUY-GALAXY (1-877-289-4252). Read the prospectus
carefully before you invest.
SHARES OF THE FUNDS ARE NOT BANK DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, FLEETBOSTON FINANCIAL CORPORATION OR ANY OF ITS AFFILIATES, FLEET
INVESTMENT ADVISORS INC., OR ANY FLEET BANK. SHARES OF THE FUNDS ARE NOT
FEDERALLY INSURED BY, GUARANTEED BY, OBLIGATIONS OF OR OTHERWISE SUPPORTED BY
THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD OR ANY OTHER GOVERNMENTAL AGENCY. INVESTMENT RETURN AND PRINCIPAL
VALUE WILL VARY AS A RESULT OF MARKET CONDITIONS OR OTHER FACTORS SO THAT SHARES
OF THE FUNDS, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
AN INVESTMENT IN THE FUNDS INVOLVES INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF
THE PRINCIPAL AMOUNT INVESTED.
[GRAPHIC OMITTED: RECYCLE LOGO]
This report was printed on recycled paper.
16
<PAGE>
TAX-EXEMPT BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MUNICIPAL SECURITIES - 99.81%
ALABAMA - 2.45%
$2,000,000 Huntsville, GO Series A
Pre-refunded 11/01/02
5.60%, 11/01/03.................. $ 2,082,500
2,725,000 Huntsville, GO Series A
Pre-refunded 11/01/02
5.75%, 11/01/04.................. 2,844,219
-------------
4,926,719
-------------
CALIFORNIA - 4.24%
2,500,000 California Educational
Facilities Authority
Stanford University,
Series O
5.13%, 01/01/31.................. 2,390,625
1,915,000 California Rural Home Mortgage
Finance Authority, Single Family
Mortgage, Mortgage-Backed
Securities Program, Series A, AMT
6.35%, 12/01/29
Insured: GNMA/FNMA/FHLMC......... 2,070,594
2,000,000 California State, GO
5.00%, 10/01/19
Insured: FSA..................... 1,930,000
1,000,000 East Bay California
Municipal Utilities District
Water Systems Revenue
5.25%, 06/01/17.................. 1,008,750
1,000,000 San Diego
Water Utilities Funding
5.38%, 08/01/12
Insured: FGIC.................... 1,048,750
-------------
8,448,719
-------------
COLORADO - 1.52%
985,000 Colorado HFA
Single Family Program,
Series B-3
6.55%, 05/01/25.................. 1,050,256
2,000,000 Denver City & County
Airport Revenue,
Series A
5.50%, 11/15/25
Insured: MBIA.................... 1,972,500
-------------
3,022,756
-------------
CONNECTICUT - 2.13%
1,000,000 Connecticut State HEFA
Trinity College,
Series F
5.50%, 07/01/21
Insured: MBIA.................... 1,001,250
500,000 Connecticut State HFA
Housing Mortgage Finance Program,
Series A
6.10%, 05/15/13.................. 520,000
615,000 Connecticut State HFA
Housing Mortgage Finance Program,
SubSeries B-1
6.25%, 05/15/11.................. 642,675
1,520,000 Connecticut State,
SP OB Transportation
Infrastructure,
Series A
5.63%, 12/01/19.................. 1,544,700
PAR VALUE VALUE
---------- -------------
CONNECTICUT (CONTINUED)
$ 500,000 Connecticut State,
SP OB Transportation
Infrastructure,
Series B
6.10%, 09/01/07.................. $ 523,750
-------------
4,232,375
-------------
FLORIDA - 4.30%
2,500,000 Florida State Board of Education
Lottery Revenue, Series C
4.50%, 07/01/17
Insured: FGIC.................... 2,209,375
2,000,000 Hillsborough County School Board,
Series A
5.50%, 07/01/14
Insured: MBIA.................... 2,082,500
2,835,000 Miami, Dade County,
SP OB Series A
5.22%, 10/01/14 (A)
Insured: MBIA.................... 1,297,012
3,000,000 Orange County Tourist Development
Tax Revenue
5.50%, 10/01/31
Insured: AMBAC................... 2,970,000
-------------
8,558,887
-------------
GEORGIA - 4.83%
2,725,000 Atlanta Airport Revenue Series A
5.50%, 01/01/22
Insured: FGIC.................... 2,694,344
2,000,000 De Kalb County
Water and Sewer Revenue
6.25%, 10/01/06.................. 2,172,500
1,000,000 Fulton County
School District, GO
5.60%, 01/01/11.................. 1,050,000
2,000,000 Georgia State, GO Series B
5.75%, 08/01/10.................. 2,157,500
1,500,000 Georgia State, GO Series E
5.50%, 07/01/03.................. 1,541,250
-------------
9,615,594
-------------
HAWAII - 0.97%
1,815,000 Hawaii State, GO Series CU
5.75%, 10/01/08
Insured: MBIA.................... 1,937,512
-------------
IDAHO - 0.85%
500,000 Boise-Kuna Irrigation District
Lucky Peak Hydroelectric Project
6.60%, 07/01/05.................. 516,535
1,160,000 Idaho Housing & Finance
Association
Single Family Mortgage
Series G-2, AMT
5.70%, 07/01/16.................. 1,165,800
-------------
1,682,335
-------------
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
TAX-EXEMPT BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
ILLINOIS - 4.27%
$1,000,000 Chicago Skyway Toll Bridge
5.50%, 01/01/31
Insured: AMBAC................... $ 972,500
1,300,000 Chicago, GO Board of Education
5.60%, 12/01/18
Insured: FGIC.................... 1,308,125
1,000,000 Cook County, GO
7.25%, 11/01/07
Insured: MBIA.................... 1,130,000
3,000,000 Illinois Educational
Facilities Authority,
Wesleyan University
5.65%, 09/01/26
Insured: MBIA.................... 2,992,500
1,000,000 Illinois State, GO
5.80%, 09/01/18
Insured: FGIC.................... 1,027,500
1,000,000 Regional Transportation
Authority
Series A
6.25%, 06/01/15.................. 1,072,500
-------------
8,503,125
-------------
INDIANA - 1.03%
2,000,000 Indianapolis Local Public
Improvement
Bond Bank Series A
6.00%, 01/10/18.................. 2,052,500
-------------
IOWA - 0.85%
1,680,000 Iowa Finance Authority
Single Family Mortgage, Series F
5.55%, 01/01/16
Insured: GNMA/FNMA............... 1,688,400
-------------
KANSAS - 0.83%
1,575,000 Kansas State
Department of Highway
Transportation
5.50%, 09/01/14.................. 1,657,687
-------------
KENTUCKY - 0.52%
1,000,000 Kentucky Housing Corp.
Series C-3
5.70%, 01/01/11.................. 1,028,750
-------------
LOUISIANA - 0.52%
1,000,000 Louisiana State, GO Series A
6.00%, 08/01/02
Insured: FGIC.................... 1,026,250
-------------
MAINE - 1.28%
1,000,000 Maine Governmental
Facilities Authority,
Lease Rent Revenue
5.63%, 10/01/19
Insured: FSA..................... 1,003,750
PAR VALUE VALUE
---------- -------------
MAINE (CONTINUED)
$1,000,000 Maine Municipal Bond Bank,
Series D
5.70%, 11/01/21
Insured: MBIA.................... $ 1,008,750
500,000 Maine Municipal Bond Bank
Sewer & Water SRF Program,
Series A
6.50%, 11/01/08.................. 528,125
-------------
2,540,625
-------------
MARYLAND - 3.86%
2,875,000 Maryland State Community
Development Administration,
Department of Housing &
Community Development,
Series A, AMT
5.70%, 07/01/17.................. 2,871,406
2,000,000 Maryland State Community
Development Administration,
Department of Housing &
Community Development,
Series B, AMT
5.55%, 09/01/25.................. 2,027,500
1,500,000 Maryland State Health & Higher
Education Facilities Authority,
Johns Hopkins University
6.00%, 07/01/10.................. 1,650,000
1,090,000 Montgomery County Housing
Opportunity Commission,
Single Family Mortgage, Series A
5.75%, 07/01/13.................. 1,126,787
-------------
7,675,693
-------------
MASSACHUSETTS - 9.84%
5,750,000 Massachusetts Bay
Transportation Authority,
General
Transportation Systems,
Series A
7.00%, 03/01/21
Insured: MBIA/IBC................ 6,792,187
2,500,000 Massachusetts Bay
Transportation Authority,
Revenue
Assessment, Series A
5.25%, 07/01/30.................. 2,371,875
2,000,000 Massachusetts State HEFA
Partners Healthcare System,
Series A
5.38%, 07/01/17
Insured: MBIA.................... 1,947,500
2,400,000 Massachusetts State HEFA
Capital Asset Program, Series D
4.55%, 01/01/35 (B)
Insured: MBIA.................... 2,400,000
1,000,000 Massachusetts State
IFA Nantucket Electric Company,
Series A, AMT
5.88%, 07/01/17
Insured: AMBAC
SPA: State Street
Bank & Trust Co. ................ 1,025,000
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
TAX-EXEMPT BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$2,000,000 Massachusetts State IFA,
Tufts University, Series H
5.50%, 02/15/12
Insured: MBIA.................... $ 2,090,000
1,000,000 Massachusetts State WRA, Series B
5.50%, 08/01/15
Insured: FSA..................... 1,035,000
2,000,000 Route 3 North
Transportation Improvement
Municipal Securities Association,
Lease Revenue
5.38%, 06/15/33
Insured: MBIA
SPA: State Street Bank
& Trust Co. 1,927,500
-------------
19,589,062
-------------
MINNESOTA - 1.01%
1,000,000 Minnesota State GO
5.50%, 11/01/13.................. 1,038,750
1,000,000 Rochester Health Care Facilities,
Mayo Foundation, Series A
5.50%, 11/15/27
Insured: GO of Mayo Foundation... 971,250
-------------
2,010,000
-------------
MISSOURI - 0.91%
1,000,000 Missouri State HEFA,
St. Louis University
5.50%, 10/01/16.................. 1,028,750
750,000 Missouri State Housing
Development Commission,
Single Family, Series B-2, AMT
6.40%, 03/01/29
Insured: GNMA/FNMA............... 790,312
-------------
1,819,062
-------------
NEBRASKA - 1.02%
2,000,000 Nebraska Investment
Finance Authority,
Single Family Housing
Series A, AMT
5.75%, 09/01/25.................. 2,032,500
-------------
NEVADA - 3.25%
1,000,000 Clark County, GO & Revenue,
Series A
Pre-refunded 06/01/02
6.00%, 06/01/16
Insured: AMBAC................... 1,023,750
1,500,000 Nevada State, GO,
Capital Improvement &
Cultural Affairs, Series A
5.50%, 02/01/18.................. 1,503,750
1,190,000 Nevada State, GO,
Colorado River Commission,
Pre-refunded 07/01/04
6.50%, 07/01/19.................. 1,277,763
PAR VALUE VALUE
---------- -------------
NEVADA (CONTINUED)
$3,000,000 Nevada State, GO,
Projects 66 & 67, Series A
5.00%, 05/15/28
Insured: FGIC.................... $ 2,670,000
-------------
6,475,263
-------------
NEW JERSEY - 3.68%
1,500,000 New Jersey Health Care
Facilities Financing Authority,
AHS Hospital Corp., Series A
6.00%, 07/01/12
Insured: AMBAC................... 1,625,625
500,000 New Jersey State Transportation
Trust Fund Authority,
Transportation System, Series A
5.50%, 06/15/09.................. 527,500
2,000,000 New Jersey State Transportation
Trust Fund Authority,
Transportation System,
Series A
5.63%, 06/15/14.................. 2,110,000
3,000,000 New Jersey State
Turnpike Authority,
Series A
5.75%, 01/01/19
Insured: MBIA.................... 3,071,250
-------------
7,334,375
-------------
NEW MEXICO - 1.02%
750,000 Dona Ana County
Gross Receipt Tax Revenue
5.50%, 06/01/16
Insured: AMBAC................... 770,625
1,280,000 New Mexico Mortgage Finance
Authority,
Single Family Mortgage,
Series B-3
5.50%, 07/01/28
Insured: GNMA/FNMA/FHLMC......... 1,249,600
-------------
2,020,225
-------------
NEW YORK - 10.14%
1,000,000 Battery Park City Authority,
Series A
5.50%, 11/01/10.................. 1,025,000
2,825,000 Long Island Power Authority,
Electric Systems Revenue,
Series A
5.25%, 12/01/26
Insured: MBIA/IBC................ 2,676,688
3,000,000 Long Island Power Authority,
Electric Systems Revenue,
Series 6
4.55%, 05/01/33 (B)
LOC: ABN AMRO Bank, N.V. ........ 3,000,000
2,165,000 Metropolitan Transportation
Authority,
Dedicated Tax Fund, Series C-1
5.25%, 07/01/17
Insured: FGIC.................... 2,127,113
2,000,000 Municipal Assistance Corp.
for New York City, Series E
6.00%, 07/01/04.................. 2,105,000
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
TAX-EXEMPT BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
NEW YORK (CONTINUED)
$1,000,000 Municipal Assistance Corp.
for New York City, Series O
5.25%, 07/01/07.................. $ 1,037,500
1,000,000 New York State, GO
5.50%, 06/15/10.................. 1,028,750
2,000,000 New York State, GO
Series F
5.25%, 09/15/12.................. 2,035,000
1,000,000 New York City, GO
Series I
6.00%, 04/15/09.................. 1,072,500
2,000,000 New York State
Energy Research &
Development Authority,
PCR, New York State
Electric & Gas Corp., Series D
4.55%, 10/01/29 (B)
LOC: First
National Bank, Chicago .......... 2,000,000
1,000,000 New York State
Thruway Authority,
Local Highway & Bridge
5.38%, 04/01/18.................. 992,500
1,000,000 Port Authority of New York and
New Jersey, SP OB,
JFK International Air Terminal,
Series 6, AMT
6.00%, 12/01/07
Insured: MBIA.................... 1,081,250
-------------
20,181,301
-------------
NORTH CAROLINA - 0.46%
875,000 North Carolina HFA,
Single Family Revenue
Series Y
6.30%, 09/01/15.................. 913,281
-------------
OHIO - 2.39%
1,000,000 Cleveland Waterworks
Refunding & Improvement,
First Mortgage
5.50%, 01/01/10
Insured: MBIA.................... 1,045,000
1,460,000 Forest Hills School District, GO
6.00%, 12/01/10
Insured: MBIA.................... 1,607,825
1,000,000 Ohio State Building Authority,
Adult Correctional Facilities,
Series A
6.00%, 04/01/06
Insured: AMBAC................... 1,066,250
1,000,000 Ohio State Higher Education,
Capital Facilities, Series B
5.63%, 05/01/15.................. 1,036,250
-------------
4,755,325
-------------
PAR VALUE VALUE
---------- -------------
PENNSYLVANIA - 4.65%
$2,000,000 Delaware Valley Regional
Finance Authority,
Local Government Revenue,
Series B
5.60%, 07/01/17
Insured: AMBAC................... $ 2,052,500
2,210,000 Elizabeth Forward
School District,
GO, Capital Appreciation,
Series B
5.52%, 09/01/21 (A)
Insured: MBIA.................... 679,575
2,210,000 Elizabeth Forward
School District,
GO, Capital Appreciation,
Series B
5.52%, 09/01/22 (A)
Insured: MBIA.................... 638,138
2,600,000 Lehigh County
General Purpose Authority
Revenue, Lehigh Valley
Hospitals,
Series A
4.60%, 07/01/28 (B)
Insured: AMBAC
SPA: Chase Manhattan Bank........ 2,600,000
1,750,000 Pennsylvania Hills,
GO Pre-refunded 12/01/02
5.80%, 12/01/13
Insured: AMBAC................... 1,798,125
1,500,000 Pennsylvania HFA,
Single Family Mortgage
Series 59-A, AMT
5.75%, 10/01/23.................. 1,483,125
-------------
9,251,463
-------------
PUERTO RICO - 1.68%
3,000,000 Puerto Rico
Electric Power Authority,
Series BB
6.00%, 07/01/12
Insured: MBIA.................... 3,337,500
-------------
RHODE ISLAND - 2.21%
700,000 Rhode Island State HMFC,
Homeownership Opportunity,
Series 13
6.70%, 10/01/15.................. 737,625
1,500,000 Rhode Island State HEBC,
Higher Education Facilities,
Johnson & Wales University
6.38%, 04/01/12
Insured: Connie Lee.............. 1,578,750
1,500,000 Rhode Island State HEBC,
Higher Education Facilities,
Johnson & Wales University,
Series A
5.75%, 04/01/12
Insured: Connie Lee.............. 1,552,500
500,000 Rhode Island State HEBC,
Miriam Hospital Foundation,
Series B
Pre-refunded 04/01/03
6.50%, 04/01/13.................. 530,625
-------------
4,399,500
-------------
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
TAX-EXEMPT BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
SOUTH CAROLINA - 1.81%
$1,500,000 Greenville Waterworks
Revenue Bonds
5.50%, 02/01/22.................. $ 1,486,875
2,100,000 Oconee County, PCR,
Duke Power Co. Project
5.80%, 04/01/14.................. 2,121,000
-------------
3,607,875
-------------
SOUTH DAKOTA - 0.52%
1,000,000 Rapid City Sales Tax
Series B
6.20%, 06/01/12
Insured: FGIC.................... 1,041,250
-------------
TENNESSEE - 1.02%
2,000,000 Metropolitan Government of
Nashville & Davidson County, GO
5.88%, 05/15/26.................. 2,037,500
-------------
TEXAS - 11.73%
1,000,000 Amarillo Health Facilities Corp.,
Baptist St.
Anthony Hospital Corp.
5.50%, 01/01/14
Insured: FSA..................... 1,028,750
5,000,000 Harris County, GO & Revenue
Capital Appreciation, Series A
5.18%, 08/15/07 (A)
Insured: FGIC.................... 3,593,750
2,170,000 Harris County HFDC,
Memorial Hospital System Project,
Series A
6.00%, 06/01/13
Insured: MBIA.................... 2,343,600
2,000,000 Houston Water & Sewer System
Junior Lien, Series A
5.38%, 12/01/27
Insured: FGIC.................... 1,915,000
4,000,000 Houston Water & Sewer System
Junior Lien, Series C
5.35%, 12/01/11 (A)
Insured: AMBAC................... 2,270,000
1,775,000 Katy Independent School District
Capital Appreciation
3.56%, 08/15/11 (A).............. 1,022,844
1,750,000 Lower Colorado River Authority
Junior Lien, 4th Supplement
Capital Appreciation
5.45%, 01/01/13 (A)
Insured: FGIC.................... 920,938
2,000,000 Lower Colorado River Authority
Junior Lien, 5th Supplement
5.38%, 01/01/16.................. 2,015,000
2,000,000 Lower Neches Valley
Authority, IDC,
Mobil Oil Refining Project
5.80%, 05/01/22.................. 1,995,000
2,000,000 New Braunfels Independent School
District, GO,
Capital Appreciation
5.23%, 02/01/07 (A).............. 1,475,000
PAR VALUE VALUE
---------- -------------
TEXAS (CONTINUED)
$1,000,000 North Central HFDC,
Presbyterian Healthcare
Pre-refunded 06/01/05
5.90%, 06/01/21.................. $ 1,053,750
2,000,000 San Antonio Airport System
7.13%, 07/01/05
Insured: AMBAC................... 2,170,000
1,500,000 Texas State, GO Series B,
Pre-refunded 10/01/02
6.10%, 10/01/11.................. 1,545,000
-------------
23,348,632
-------------
UTAH - 1.13%
2,500,000 Central Utah
Water Conservancy, GO
Series D
5.00%, 04/01/27
Insured: AMBAC................... 2,246,875
-------------
VIRGINIA - 0.53%
1,025,000 Virginia State, GO
5.38%, 06/01/04.................. 1,057,031
-------------
WASHINGTON - 2.54%
2,625,000 Port Seattle Series A
5.50%, 02/01/26
Insured: MBIA.................... 2,572,500
1,370,000 Seattle, GO Series A
5.50%, 03/01/11.................. 1,436,788
1,000,000 Washington State, GO Series A
5.63%, 07/01/13.................. 1,037,500
-------------
5,046,788
-------------
WEST VIRGINIA - 1.04%
2,000,000 West Virginia School Building
Authority, Capital Improvement
5.50%, 07/01/11
Insured: AMBAC................... 2,065,000
-------------
WISCONSIN - 2.78%
1,450,000 Wisconsin State, GO Series B,
Pre-refunded 10/01/02
5.50%, 05/01/09.................. 1,497,125
2,000,000 Wisconsin State, GO Series D
5.50%, 05/01/16.................. 2,030,140
2,000,000 Wisconsin State, GO Series C
5.55%, 05/01/21.................. 2,002,500
-------------
5,529,765
-------------
TOTAL MUNICIPAL SECURITIES ...... 198,697,500
-------------
(Cost $196,338,037)
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
TAX-EXEMPT BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
SHARES VALUE
---------- -------------
INVESTMENT COMPANIES - 0.88%
711,671 Dreyfus Tax-Exempt Cash
Management Fund.................. $ 711,671
1,043,910 Federated Tax-Free
Obligations Fund ................ 1,043,910
-------------
TOTAL INVESTMENT COMPANIES ...... 1,755,581
-------------
(Cost $1,755,581)
TOTAL INVESTMENTS - 100.69%...................... 200,453,081
-------------
(Cost $198,093,618)
NET OTHER ASSETS AND LIABILITIES - (0.69)%....... (1,382,413)
-------------
NET ASSETS - 100.00%............................. $ 199,070,668
=============
----------------------------------------
(A) Zero coupon bond. Rate shown reflects effective yield to maturity at
time of purchase.
(B) Variable rate bond. Rate shown reflects the rate in effect at October
31, 2000.
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax. Private activity obligations the interest
on which is subject to the federal AMT for individuals.
Connie Lee College Construction Loan Association
FGIC Federal Guaranty Insurance Corp.
FHLMC Federal Home Loan Mortgage Corp.
FNMA Federal National Mortgage Association
FSA Financial Security Assurance Company
GNMA Government National Mortgage Association
GO General Obligation
HEBC Health and Educational Building Corp.
HEFA Health and Educational Facilities Authority
HFA Housing Finance Authority
HFDC Health Facilities Development Corp.
HMFC Housing & Mortgage Finance Corp.
IBC Insured Bond Certificate
IDC Industrial Development Corp.
IFA Industrial Finance Agency
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
SP OB Special Obligation
SPA Stand-by Purchase Agreement
WRA Water Resource Authority
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
CONNECTICUT MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MUNICIPAL SECURITIES - 95.86%
CONNECTICUT - 85.41%
$ 250,000 Cheshire, GO
5.10%, 08/15/07.................. $ 257,187
885,000 Colchester, GO, Lot A
5.40%, 08/15/10.................. 930,356
400,000 Connecticut State
Airport Revenue,
Bradley International Airport
7.40%, 10/01/04
Insured: FGIC.................... 436,000
500,000 Connecticut State
Airport Revenue,
Bradley International Airport
7.65%, 10/01/12
Insured: FGIC.................... 552,500
500,000 Connecticut State
Clean Water Fund
7.00%, 01/01/11.................. 511,970
200,000 Connecticut State
Clean Water Fund
6.00%, 10/01/12.................. 220,000
500,000 Connecticut State HEFA,
Backus (William W.)
Hospital Issue,
Series D
5.63%, 07/01/17
Insured: AMBAC................... 506,875
900,000 Connecticut State HEFA,
Connecticut College, Series C1
5.50%, 07/01/27
Insured: MBIA.................... 893,250
1,250,000 Connecticut State HEFA,
Connecticut College, Series D-1
5.75%, 07/01/30
Insured: MBIA.................... 1,268,750
2,000,000 Connecticut State HEFA,
Fairfeild University, Series I
5.25%, 07/01/25
Insured: MBIA.................... 1,922,500
750,000 Connecticut State HEFA,
Greenwich Hospital Issue,
Series A
5.30%, 07/01/08
Insured: MBIA.................... 776,250
1,060,000 Connecticut State HEFA,
Middlesex Hospital, Series H
5.00%, 07/01/12
Insured: MBIA.................... 1,056,025
375,000 Connecticut State HEFA,
Newington Childrens Hospital,
Series A
5.65%, 07/01/05
Insured: MBIA.................... 391,406
500,000 Connecticut State HEFA,
Trinity College, Series F
5.50%, 07/01/21
Insured: MBIA.................... 500,625
125,000 Connecticut State HFA,
Housing Mortgage Finance Program,
Series A-1
5.85%, 11/15/16.................. 127,187
400,000 Connecticut State HFA,
Housing Mortgage Finance Program,
Series B
6.25%, 11/15/05.................. 419,000
100,000 Connecticut State HFA,
Housing Mortgage Finance Program,
Series B
6.20%, 05/15/12.................. 104,250
PAR VALUE VALUE
---------- -------------
CONNECTICUT (CONTINUED)
$1,000,000 Connecticut State HFA,
Housing Mortgage Finance Program,
Series B
6.30%, 05/15/24
Insured: FHA..................... $ 1,026,250
1,500,000 Connecticut State HFA,
Housing Mortgage Finance Program,
Series D-2
5.45%, 11/15/24.................. 1,438,125
1,000,000 Connecticut State HFA,
Housing Mortgage Finance Program,
Subseries B-2, AMT
5.85%, 05/15/31.................. 992,500
735,000 Connecticut State
Higher Education
Supplemental Loan Authority,
Family Education Loan Program,
Series A
5.63%, 11/15/07.................. 744,187
1,000,000 Connecticut State
Resource Recovery
Authority, Series A
5.75%, 11/15/07.................. 1,066,250
250,000 Connecticut State, GO, Series A
5.10%, 11/15/04.................. 255,937
1,000,000 Connecticut State, GO, Series A
5.13%, 03/01/10.................. 1,027,500
500,000 Connecticut State, GO, Series C
5.50%, 08/15/05.................. 521,875
10,000 Connecticut State,
Series B, Pre-refunded
5.40%, 03/15/08.................. 10,462
390,000 Connecticut State,
Series B, Unrefunded balance
5.40%, 03/15/08.................. 408,525
25,000 Connecticut State,
Series E, Pre-refunded
6.00%, 03/15/12.................. 27,250
975,000 Connecticut State,
Series E, Unrefunded balance
6.00%, 03/15/12.................. 1,068,844
950,000 Connecticut State,
SP OB Transportation
Infrastructure, Series A
5.13%, 09/01/05.................. 972,562
700,000 Connecticut State,
SP OB Transportation
Infrastructure, Series A
5.40%, 04/01/07.................. 724,500
1,250,000 Connecticut State,
SP OB Transportation
Infrastructure, Series A
5.25%, 09/01/07.................. 1,292,187
1,500,000 Connecticut State,
SP OB Transportation
Infrastructure, Series A
5.38%, 09/01/08.................. 1,565,625
1,750,000 Connecticut State,
SP OB Transportation
Infrastructure, Series A
5.50%, 10/01/12.................. 1,839,688
400,000 Connecticut State,
SP OB Transportation
Infrastructure, Series B
6.13%, 09/01/12.................. 440,500
200,000 Danbury, GO
5.63%, 02/01/13.................. 212,500
250,000 East Hampton, GO
5.10%, 06/15/05
Insured: MBIA.................... 254,688
1,100,000 Fairfield, GO
5.00%, 01/01/18.................. 1,056,000
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
CONNECTICUT MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
CONNECTICUT (CONTINUED)
$ 500,000 Hamden, GO
5.50%, 08/15/14
Insured: MBIA.................... $ 514,375
250,000 Hartford County
Metropolitan District, GO
6.70%, 10/01/09.................. 287,500
1,000,000 Hartford, GO
6.00%, 06/15/02
Insured: FGIC.................... 1,026,250
300,000 Meriden, GO
5.75%, 10/15/04
Insured: AMBAC................... 313,875
580,000 Monroe, GO
5.63%, 04/15/14
Insured: FGIC.................... 595,950
370,000 Montville, GO
5.30%, 12/01/09.................. 386,188
500,000 New Canaan, GO
4.75%, 02/01/18.................. 458,125
1,500,000 New Haven, GO
5.38%, 02/15/11
Insured: FGIC.................... 1,552,500
100,000 New Milford, GO
5.80%, 10/01/01.................. 101,370
250,000 New Milford, GO
5.50%, 08/01/08.................. 263,750
1,000,000 New Milford, GO
5.00%, 05/15/15.................. 973,750
200,000 Norwalk, GO
5.00%, 01/15/06.................. 203,000
500,000 Norwich, GO
5.63%, 09/15/07.................. 526,250
330,000 Regional School
District No. 5, GO
5.05%, 05/15/04.................. 332,888
135,000 Regional School
District No. 5, GO
5.15%, 05/15/05.................. 136,181
225,000 South Central Regional
Water Authority
Water System, Series 11
5.75%, 08/01/12
Insured: FGIC.................... 233,438
175,000 South Central Regional
Water Authority
Water System, Series 12
5.13%, 08/01/07
Insured: FGIC.................... 178,938
1,300,000 Torrington, GO
5.13%, 09/15/12
Insured: FGIC.................... 1,324,375
100,000 Trumbull, GO
6.00%, 05/15/04.................. 105,125
2,000,000 University Connecticut,
GO, Series A
5.38%, 03/01/19
Insured: MBIA.................... 1,997,500
100,000 West Hartford, GO
6.00%, 05/01/07.................. 108,250
250,000 West Haven, GO, Series B
5.40%, 06/01/09.................. 256,563
1,890,000 Westport, GO
5.00%, 07/15/18.................. 1,812,038
-------------
41,508,265
-------------
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS - 1.95%
$1,000,000 Massachusetts Bay Transportation
Authority, Revenue Assessment,
Series A
5.25%, 07/01/30.................. $ 948,750
-------------
PENNSYLVANIA - 2.06%
1,000,000 Lehigh County
General Purpose Authority
Revenue, Lehigh Valley Hospitals,
Series A
4.60%, 07/01/28 (A)
Insured: AMBAC
SPA: Chase Manhattan Bank........ 1,000,000
-------------
PUERTO RICO - 6.44%
1,000,000 Puerto Rico Commonwealth, GO
6.00%, 07/01/16
Insured: MBIA.................... 1,106,250
1,000,000 Puerto Rico
Commonwealth Infrastructure
Financing Authority, Series A
5.50%, 10/01/40.................. 1,001,250
1,000,000 Puerto Rico
Municipal Finance Agency,
GO, Series A
5.50%, 07/01/17
Insured: FSA..................... 1,021,250
-------------
3,128,750
-------------
TOTAL MUNICIPAL SECURITIES ...... 46,585,765
-------------
(Cost $45,786,112)
SHARES
-----------
INVESTMENT COMPANIES - 3.14%
185,926 Federated Connecticut
Municipal Cash Trust............. 185,926
1,342,049 Dreyfus Tax-Exempt
Cash Management
Fund............................. 1,342,049
-------------
TOTAL INVESTMENT COMPANIES ...... 1,527,975
-------------
(Cost $1,527,975)
TOTAL INVESTMENTS - 99.00%....................... 48,113,740
-------------
(Cost $47,314,087)
NET OTHER ASSETS AND LIABILITIES - 1.00%......... 486,017
-------------
NET ASSETS - 100.00%............................. $ 48,599,757
=============
-------------------------------------------
(A) Variable rate bond. Rate shown reflects the rate in effect at October
31, 2000.
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax. Private activity obligations the interest
on which is subject to the federal AMT for individuals.
FGIC Federal Guaranty Insurance Corp.
FHA Federal Housing Authority
FSA Financial Security Assurance Company
GO General Obligation
HEFA Health and Educational Facilities Authority
HFA Housing Finance Authority
MBIA Municipal Bond Insurance Association
SP OB Special Obligation
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
MASSACHUSETTS MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MUNICIPAL SECURITIES - 96.99%
MASSACHUSETTS - 93.55%
$ 300,000 Attleboro, GO
5.20%, 07/01/02
Insured: AMBAC................... $ 304,125
250,000 Boston, GO
5.25%, 10/01/05
Insured: MBIA.................... 258,750
360,000 Boston, GO, Series A
5.45%, 02/01/07
Insured: AMBAC................... 372,600
225,000 Boston, GO, Series A
5.55%, 02/01/08
Insured: AMBAC................... 233,437
200,000 Boston Water & Sewer Commission,
General Purpose, Senior Series A
5.50%, 11/01/01
Insured: FSA..................... 202,156
230,000 Boston Water & Sewer Commission,
General Purpose, Senior Series A
Pre-refunded 11/01/01
7.00%, 11/01/18
Insured: FGIC.................... 240,506
100,000 Brookline, GO
5.60%, 09/01/10.................. 103,375
250,000 Deerfield, GO
5.60%, 06/15/02.................. 254,062
2,015,000 Everett, GO
6.00%, 12/15/11
Insured: MBIA.................... 2,219,019
250,000 Franklin, GO
5.50%, 11/15/02
Insured: MBIA.................... 255,625
2,385,000 Holden, GO,
Municipal Purpose Loan
5.75%, 03/01/18
Insured: FGIC.................... 2,462,512
100,000 Kingston, GO
5.70%, 08/01/07.................. 103,625
250,000 Lowell, GO
6.05%, 04/01/11
Insured: FSA..................... 266,250
100,000 Lynn Water & Sewer Commission
5.30%, 12/01/06
Insured: FGIC.................... 103,125
130,000 Massachusetts Bay Transportation
Authority, Series A
6.00%, 03/01/12.................. 135,200
200,000 Massachusetts Bay Transportation
Authority, Series A
5.75%, 03/01/22.................. 203,500
1,000,000 Massachusetts Bay Transportation
Authority, Series A, SP OB
5.75%, 07/01/18.................. 1,030,000
2,000,000 Massachusetts Bay Transportation
Authority, General Transportation
System, Series A
5.40%, 03/01/08.................. 2,090,000
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$1,000,000 Massachusetts Bay Transportation
Authority, General Transportation
System, Series D
5.00%, 03/01/11.................. $ 1,028,750
750,000 Massachusetts Educational
Financing Authority,
Issue G, Series A, AMT
5.15%, 12/01/15
Insured: MBIA.................... 722,812
370,000 Massachusetts State, GO,
Federal Assisted Housing
6.00%, 02/01/08.................. 394,050
250,000 Massachusetts State, GO, Series A
6.25%, 07/01/02.................. 257,500
250,000 Massachusetts State, GO, Series A
6.25%, 07/01/04.................. 265,313
750,000 Massachusetts State, GO, Series A
5.25%, 02/01/08.................. 766,875
200,000 Massachusetts State, GO, Series B
5.30%, 11/01/05.................. 207,250
100,000 Massachusetts State, GO, Series B
5.50%, 11/01/07.................. 105,250
4,000,000 Massachusetts State
Capital Appreciation,
Federal Highway Note, Series A
5.15%, 06/15/15 (A).............. 1,820,000
250,000 Massachusetts State
Consolidated Loan, GO, Series A
5.75%, 02/01/15
Insured: MBIA.................... 263,750
250,000 Massachusetts State
Consolidated Loan, GO, Series B
5.10%, 07/01/03.................. 254,688
1,000,000 Massachusetts State
Consolidated Loan, GO, Series C
5.02%, 08/01/18 (A).............. 368,750
100,000 Massachusetts State
Convention Center Authorit,y
Boston Common Parking Garage,
Series A
5.35%, 09/01/06.................. 103,375
100,000 Massachusetts State
Convention Center Authority,
Boston Common Parking Garage,
Series A
5.40%, 09/01/07.................. 103,375
2,000,000 Massachusetts State
Development Finance Agency,
Higher Education, Smith College
5.75%, 07/01/23.................. 2,032,500
1,200,000 Massachusetts State
Development Finance Agency,
Lease Revenue,
Visual and Performing Arts
Project
6.00%, 08/01/21.................. 1,270,500
800,000 Massachusetts State
Development Finance Agency,
Regis College
5.00%, 10/01/08.................. 779,000
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
MASSACHUSETTS MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$1,000,000 Massachusetts State
Grant Anticipation Notes,
Series A
5.50%, 06/15/14.................. $ 1,026,250
1,000,000 Massachusetts State, HEFA,
Amherst College, Series G
5.00%, 11/01/18.................. 938,750
2,000,000 Massachusetts State, HEFA,
Amherst College, Series G
5.38%, 11/01/20.................. 1,965,000
400,000 Massachusetts State, HEFA,
Beth Israel Hospital, Series G
5.70%, 07/01/05
Insured: AMBAC................... 414,000
1,000,000 Massachusetts State, HEFA,
Caregroup, Series A
5.50%, 07/01/08.................. 1,043,750
1,000,000 Massachusetts State, HEFA,
Harvard University, Series P
5.63%, 11/01/26.................. 1,006,250
1,000,000 Massachusetts State, HEFA,
Harvard University, Series P
5.38%, 11/01/32.................. 973,750
100,000 Massachusetts State, HEFA,
McLean Hospital Issue, Series C
6.63%, 07/01/15
Insured: FGIC.................... 105,500
250,000 Massachusetts State, HEFA,
Medical Center of
Central Massachusetts,
Series B
6.00%, 07/01/02
Insured: AMBAC................... 255,937
1,110,000 Massachusetts State, HEFA,
Northeastern University, Series G
5.50%, 10/01/12
Insured: MBIA.................... 1,161,337
1,435,000 Massachusetts State, HEFA,
Partners Healthcare System,
Series A
5.38%, 07/01/17
Insured: MBIA.................... 1,397,331
100,000 Massachusetts State, HEFA,
South Shore Hospital, Series E
5.40%, 07/01/07
Insured: MBIA.................... 102,250
325,000 Massachusetts State, HEFA,
South Shore Hospital, Series E
5.50%, 07/01/13
Insured: MBIA.................... 328,250
1,000,000 Massachusetts State, HEFA,
University of Massachusetts,
Series A
5.88%, 10/01/29
Insured: FGIC.................... 1,016,250
500,000 Massachusetts State, HEFA,
Williams College, Series D
5.40%, 07/01/05.................. 518,125
1,750,000 Massachusetts State, HEFA,
Williams College, Series F
5.50%, 07/01/26.................. 1,723,750
150,000 Massachusetts State, HFA,
Single Family, Series 41
5.25%, 06/01/01.................. 150,717
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$1,000,000 Massachusetts State, HFA,
Single Family, Series 77, AMT
5.95%, 06/01/25
Insured: FSA..................... $ 1,026,250
1,250,000 Massachusetts State, IFA,
Belmont Hill School
5.63%, 09/01/20.................. 1,235,937
400,000 Massachusetts State, IFA,
Brooks School
5.95%, 07/01/23.................. 421,500
1,000,000 Massachusetts State, IFA,
Combined Jewish Philanthropies
Series A
6.38%, 02/01/15
Insured: AMBAC................... 1,052,500
1,000,000 Massachusetts State, IFA,
Concord Academy
5.50%, 09/01/27.................. 925,000
1,000,000 Massachusetts State, IFA,
Groton School, Series A
5.00%, 03/01/28.................. 907,500
250,000 Massachusetts State, IFA,
Lesley College Project, Series A
6.00%, 07/01/10
Insured: Connie Lee.............. 266,250
300,000 Massachusetts State, IFA,
Milton Academy, Series B
5.30%, 09/01/08
Insured: MBIA.................... 307,500
950,000 Massachusetts State, IFA,
Nantucket Electric Company,
Series A, AMT
5.88%, 07/01/17
Insured: AMBAC
SPA: State Street Bank
& Trust Co. ..................... 973,750
500,000 Massachusetts State, IFA,
Park School
5.90%, 09/01/26.................. 500,000
2,000,000 Massachusetts State, IFA,
Phillips Academy
5.38%, 09/01/23.................. 1,965,000
1,210,000 Massachusetts State, IFA,
Trustees Deerfield Academy
5.00%, 10/01/23.................. 1,113,200
1,830,000 Massachusetts State, IFA,
Tufts University, Series H
5.50%, 02/15/13
Insured: MBIA.................... 1,905,488
1,200,000 Massachusetts State, IFA,
Wentworth Institute
of Technology
5.65%, 10/01/18.................. 1,176,000
1,300,000 Massachusetts State, IFA,
Worcester Polytechnic Institute,
Series 2
5.25%, 09/01/14
Insured: MBIA.................... 1,306,500
585,000 Massachusetts State
Port Authority
5.63%, 07/01/12.................. 614,250
250,000 Massachusetts State
Port Authority,
Series B
5.30%, 07/01/01.................. 251,603
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
MASSACHUSETTS MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$2,000,000 Massachusetts State
Port Authority
Series C
5.63%, 07/01/18.................. $ 2,027,500
200,000 Massachusetts State, SP OB and
Revenue, Series A
6.00%, 06/01/13
Insured: AMBAC................... 204,750
250,000 Massachusetts State, SP OB and
Revenue, Series A
Pre-refunded 06/01/04
5.80%, 06/01/14.................. 262,500
1,000,000 Massachusetts State, SP OB
and Revenue, Consolidated Loan
Series A
5.50%, 06/01/13.................. 1,042,500
250,000 Massachusetts State
Turnpike Authority,
Series A
5.00%, 01/01/13.................. 248,125
1,000,000 Massachusetts State
Turnpike Authority,
Metropolitan Highway System,
Subordinated Series A
5.13%, 01/01/09
Insured: AMBAC................... 1,025,000
500,000 Massachusetts State
Turnpike Authority,
Metropolitan Highway System,
Subordinated Series A
5.00%, 01/01/39
Insured: AMBAC................... 445,000
250,000 Massachusetts State WPAT
Pooled Loan Program, Series 1
5.00%, 02/01/02.................. 251,875
2,000,000 Massachusetts State WPAT
Pooled Loan Program, Series 5
5.75%, 08/01/16.................. 2,075,000
225,000 Massachusetts State WPAT,
Series A
Prerefunded
5.40%, 08/01/11.................. 235,125
25,000 Massachusetts State WPAT,
Series A
Unrefunded balance
5.40%, 08/01/11.................. 26,000
300,000 Massachusetts State WRA,
Series A
6.30%, 12/01/01.................. 305,955
190,000 Massachusetts State WRA,
Series A
Pre-refunded 07/15/02
6.50%, 07/15/21.................. 200,213
300,000 Massachusetts State WRA,
Series B
5.88%, 11/01/04.................. 312,750
1,165,000 Massachusetts State WRA,
Series B
5.50%, 08/01/15
Insured: FSA..................... 1,205,775
1,000,000 Methuen, GO
5.63%, 11/15/14
Insured: FSA..................... 1,035,000
450,000 New England Education
Loan Marketing Corp., Issue A
5.80%, 03/01/02.................. 457,875
200,000 Northampton, GO
5.30%, 09/01/10
Insured: AMBAC................... 204,500
1,725,000 Plymouth, GO
5.00%, 10/15/18
Insured: MBIA.................... 1,636,594
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$2,500,000 Route 3 North Transportation
Improvement Municipal Securities
Association Lease Revenue
5.38%, 06/15/33
Insured: MBIA
SPA: State Street
Bank & Trust Co. ................ $ 2,409,375
150,000 Salem, GO
5.80%, 07/15/06
Insured: AMBAC................... 155,813
100,000 Salem, GO
5.90%, 07/15/07
Insured: AMBAC................... 104,000
200,000 Sandwich, GO
5.40%, 11/01/07
Insured: AMBAC................... 207,250
1,000,000 Southeastern Massachusetts
University Building Authority,
Series A
5.75%, 05/01/16
Insured: AMBAC................... 1,025,000
1,500,000 Springfield, GO
Municipal Purpose Loan
5.00%, 09/01/15.................. 1,470,000
1,000,000 Springfield, GO
Municipal Purpose Loan
6.00%, 10/01/16.................. 1,063,750
1,000,000 Springfield, GO
Municipal Purpose Loan
5.00%, 11/15/18.................. 951,250
400,000 Taunton, GO
8.00%, 02/01/01.................. 403,408
250,000 University of Lowell
Building Authority
Fifth Series A
6.75%, 11/01/03
Insured: AMBAC................... 265,937
200,000 University of Massachusetts
Building Authority, Series A
5.50%, 05/01/03
Insured: MBIA.................... 204,750
-------------
73,119,600
-------------
PUERTO RICO - 3.44%
500,000 Puerto Rico Commonwealth
Aqueduct & Sewer Authority
6.00%, 07/01/09
Insured: MBIA.................... 556,250
1,000,000 Puerto Rico
Electric Power Authority,
Series BB,
6.00%, 07/01/12
Insured: MBIA.................... 1,112,500
1,000,000 Puerto Rico
Municipal Finance Agency,
GO, Series A,
5.50%, 07/01/17
Insured: FSA..................... 1,021,250
-------------
2,690,000
-------------
TOTAL MUNICIPAL SECURITIES ...... 75,809,600
-------------
(Cost $75,271,510)
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
MASSACHUSETTS MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
SHARES VALUE
---------- -------------
INVESTMENT COMPANIES - 1.79%
1,320,008 Dreyfus Tax-Exempt Cash
Management Fund.................. $ 1,320,008
77,671 Federated Massachusetts
Municipal Cash Trust............. 77,671
-------------
TOTAL INVESTMENT COMPANIES ...... 1,397,679
-------------
(Cost $1,397,679)
TOTAL INVESTMENTS - 98.78%....................... 77,207,279
-------------
(Cost $76,669,189)
NET OTHER ASSETS AND LIABILITIES - 1.22%......... 951,196
-------------
NET ASSETS - 100.00%............................. $ 78,158,475
=============
---------------------------------
(A) Zero coupon bond. Rate shown reflects effective yield to maturity at
time of purchase.
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax. Private activity obligations the interest on
which is subject to federal AMT for individuals.
Connie Lee College Construction Loan Association
FGIC Federal Guaranty Insurance Corp.
FSA Financial Security Assurance Company
GO General Obligation
HEFA Health and Educational Facilities Authority
HFA Housing Finance Agency
IFA Industrial Finance Agency
MBIA Municipal Bond Insurance Association
SP OB Special Obligation
WPAT Water Pollution Abatement Test
WRA Water Resource Authority
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
NEW JERSEY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MUNICIPAL SECURITIES - 96.93%
DELAWARE - 2.22%
$ 250,000 Delaware River & Bay Authority,
Series A
5.40%, 01/01/14
Insured: AMBAC................... $ 253,437
-------------
FLORIDA - 0.88%
100,000 Orange County,
School Board Certificates of
Participation, Series B
4.60%, 08/01/25 (A)
Insured: AMBAC................... 100,000
-------------
NEW JERSEY - 86.68%
400,000 Flemington Raritan,
NJ Regional School District, GO
5.70%, 02/01/15
Insured: FGIC.................... 425,000
235,000 Freehold Township
Board of Education, GO
5.38%, 07/15/10
Insured: FSA..................... 243,812
250,000 Lacey Municipal
Utilities Authority
5.10%, 12/01/16
Insured: MBIA.................... 244,687
50,000 Lenape Regional High School
District, GO
5.00%, 04/01/12
Insured: FGIC.................... 50,187
500,000 Lindenwold Borough School
District, GO
5.20%, 06/01/25
Insured: FSA..................... 475,000
250,000 Mercer County Improvement
Authority Youth Center, Series B
5.00%, 02/15/14
Insured: FGIC.................... 245,937
50,000 Monmouth County Improvement
Authority Governmental Loan
5.50%, 12/01/07
Insured: AMBAC................... 52,687
100,000 Morristown, GO
5.15%, 02/01/09
Insured: FSA..................... 102,875
250,000 New Brunswick, GO
4.80%, 09/15/13
Insured: MBIA.................... 243,125
250,000 New Jersey Building Authority,
State Building Revenue
6.00%, 06/15/07.................. 269,687
250,000 New Jersey Economic Development
Authority, State Office Buildings
5.25%, 06/15/08
Insured: AMBAC................... 259,375
400,000 New Jersey Educational Facilities
Authority, Higher
Education Facility
Trust Fund Bonds, Series A
5.13%, 09/01/06
Insured: AMBAC................... 411,500
PAR VALUE VALUE
---------- -------------
NEW JERSEY (CONTINUED)
$ 250,000 New Jersey Educational Facilities
Authority, Rowan
University Issue,
Series B
5.25%, 07/01/19
Insured: FGIC.................... $ 244,688
75,000 New Jersey Environmental
Infrastructure Trust
Wastewater Treatment, Series F
5.00%, 04/01/14
Insured: MBIA.................... 73,781
500,000 New Jersey Environmental
Infrastructure Trust
Wastewater Treatment, Series G
5.00%, 04/01/12
Insured: FGIC.................... 501,250
300,000 New Jersey Health Care Facilities
Financing Authority,
Medical Center at Princeton
5.13%, 07/01/18
Insured: AMBAC................... 286,875
190,000 New Jersey Sports &
Exposition Authority
Convention Center
Luxury Tax Revenue, Series A,
Pre-refunded 07/01/2002
6.00%, 07/01/13
Insured: MBIA.................... 198,550
250,000 New Jersey State
Educational Facilities Authority,
Capital Improvement Fund,
Series A
5.00%, 09/01/03.................. 253,750
500,000 New Jersey State
Educational Facilities Authority,
William Patterson University,
Series A
5.38%, 07/01/21
Insured: FGIC.................... 491,875
300,000 New Jersey State
Highway Authority,
Garden State Parkway
5.60%, 01/01/17
Insured: FGIC.................... 307,500
250,000 New Jersey State HMFA
Home Buyer, Series G
4.63%, 04/01/15
Insured: MBIA.................... 249,375
190,000 New Jersey State HMFA
Home Buyer, Series O, AMT
5.80%, 10/01/20
Insured: MBIA.................... 190,950
400,000 New Jersey State HMFA
Multi-Family Housing, Series E2
5.75%, 11/01/25
Insured: FSA..................... 404,500
250,000 New Jersey State HMFA, Series B
6.05%, 11/01/17
Insured: FSA..................... 260,938
400,000 New Jersey State Transportation
Trust Fund Authority,
Transportation System, Series A
5.00%, 06/15/06.................. 408,500
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
NEW JERSEY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
NEW JERSEY (CONTINUED)
$ 250,000 New Jersey State Transportation
Trust Fund Authority,
Transportation System, Series A
5.50%, 06/15/09.................. $ 263,750
400,000 New Jersey State Transportation
Trust Fund Authority,
Transportation System, Series A
5.63%, 06/15/12.................. 424,500
295,000 New Jersey State
Turnpike Authority,
Series A
5.75%, 01/01/19
Insured: MBIA.................... 302,006
400,000 Ocean County, GO
General Improvement
5.30%, 12/01/06.................. 417,000
50,000 Old Tappan Board of Education, GO
5.10%, 04/01/15
Insured: FGIC.................... 49,313
50,000 Plumsted Township
Board of Education, GO
5.00%, 03/01/14
Insured: FGIC.................... 49,500
250,000 Trenton, GO
5.70%, 03/01/19
Insured: FGIC.................... 255,938
250,000 Union County, GO
General Improvement
5.13%, 02/01/16.................. 245,938
300,000 Vernon Township
Board of Education, GO
5.38%, 12/01/19
Insured: FGIC.................... 298,875
400,000 West Deptford Township
New Jersey, GO
5.50%, 09/01/20
Insured: FGIC.................... 402,500
250,000 West Orange Board of Education
Certificate of Participation
5.63%, 10/01/29
Insured: MBIA.................... 250,938
-------------
9,856,662
-------------
PUERTO RICO - 7.15%
250,000 Puerto Rico Commonwealth, GO
6.00%, 07/01/16
Insured: MBIA.................... 276,563
250,000 Puerto Rico Commonwealth, GO
5.00%, 07/01/27
Insured: FSA..................... 232,500
50,000 Puerto Rico
Electric Power Authority,
Series AA
5.25%, 07/01/17
Insured: MBIA.................... 50,125
250,000 Puerto Rico
Electric Power Authority,
Series DD
5.25%, 07/01/15
Insured: FSA..................... 253,438
-------------
812,626
-------------
TOTAL MUNICIPAL SECURITIES ...... 11,022,725
-------------
(Cost $10,951,997)
SHARES VALUE
---------- -------------
INVESTMENT COMPANIES - 0.71%
39,299 Dreyfus Tax-Exempt Cash
Management Fund.................. $ 39,299
41,567 Federated Tax-Free
Obligations Fund ................ 41,567
-------------
TOTAL INVESTMENT COMPANIES ...... 80,866
-------------
(Cost $80,866)
TOTAL INVESTMENTS - 97.64%....................... 11,103,591
-------------
(Cost $11,032,863)
NET OTHER ASSETS AND LIABILITES - 2.36%.......... 267,992
-------------
NET ASSETS - 100.00%............................. $ 11,371,583
=============
-----------------------------
(A) Variable rate bond. Rate shown reflects the rate in effect at October
31, 2000.
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax. Private activity obligations the interest on
which is subject to the federal AMT for individuals.
FGIC Federal Guaranty Insurance Corp.
FSA Financial Security Assurance Company
GO General Obligation
HMFA Housing and Mortgage Finance Agency
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
NEW YORK MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MUNICIPAL SECURITIES - 95.95%
NEW YORK - 93.89%
$1,000,000 Albany County, GO
5.50%, 06/01/08
Insured: FGIC.................... $ 1,041,250
1,000,000 Albany County
Airport Authority, AMT
5.38%, 12/15/17
Insured: FSA..................... 981,250
100,000 Canandaigua City
School District, GO
6.50%, 06/01/10
Insured: AMBAC................... 113,000
2,000,000 Long Island Power Authority,
Electric Systems Revenue,
Series A
5.50%, 12/01/13
Insured: FSA..................... 2,092,500
1,000,000 Metropolitan Transportation
Authority,
Dedicated Tax Fund, Series A
5.50%, 04/01/16
Insured: MBIA.................... 1,008,750
2,000,000 Metropolitan Transportation
Authority,
Dedicated Tax Fund, Series A
5.00%, 04/01/23
Insured: FGIC.................... 1,847,500
1,000,000 Metropolitan Transportation
Authority,
Dedicated Tax Fund, Series C-1
5.25%, 07/01/17
Insured: FGIC.................... 982,500
2,000,000 Metropolitan Transportation
Authority,
Transportation Facilities Revenue
Series A
6.00%, 07/01/19.................. 2,065,000
600,000 Monroe County,
GO Public Improvement
Pre-refunded 03/01/01
6.10%, 03/01/09
Insured: MBIA.................... 615,438
25,000 Monroe County,
GO Public Improvement
Unrefunded Balance
6.10%, 03/01/09
Insured: MBIA.................... 25,615
900,000 Monroe County,
GO Public Improvement
Pre-refunded 06/01/04
6.10%, 06/01/14
Insured: AMBAC................... 964,125
1,000,000 Monroe County
Water Authority,
Series A,
Pre-refunded 8/01/01
6.25%, 08/01/11.................. 1,024,490
PAR VALUE VALUE
---------- -------------
NEW YORK (CONTINUED)
$1,000,000 Monroe Woodbury Central
School District, GO
5.63%, 05/15/18
Insured: MBIA.................... $ 1,013,750
1,500,000 Municipal Assistance Corporation
for New York City, Series L
6.00%, 07/01/08.................. 1,627,500
500,000 New Castle, GO
Public Improvement
5.88%, 09/15/09.................. 520,625
2,060,000 New York City, GO
Capital Appreciation, Series F
4.59%, 08/01/08 (A)
Insured: MBIA.................... 1,416,250
3,500,000 New York City, GO
Capital Appreciation, Series G
4.65%, 08/01/08 (A)
Insured: MBIA.................... 2,406,250
1,000,000 New York City, GO Series I
6.00%, 04/15/09.................. 1,072,500
1,000,000 New York City Industrial
Development Agency,
Civic Facility
Trinity Episcopal School Corp.
Project
5.25%, 06/15/17
Insured: MBIA.................... 982,500
500,000 New York City MWFA,
Water & Sewer System, Series A
6.10%, 06/15/06.................. 519,375
2,000,000 New York City MWFA,
Water & Sewer System, Series A
5.13%, 06/15/15.................. 1,977,500
1,000,000 New York City MWFA,
Water & Sewer System, Series A
6.00%, 06/15/17.................. 1,032,500
1,000,000 New York City MWFA,
Water & Sewer System, Series A
5.75%, 06/15/18
Insured: AMBAC................... 1,013,750
750,000 New York City MWFA,
Water & Sewer System, Series B
5.75%, 06/15/13
Insured: MBIA.................... 750,465
1,000,000 New York City MWFA,
Water & Sewer System, Series B
5.75%, 06/15/26
Insured: MBIA.................... 1,003,750
1,000,000 New York City MWFA,
Water & Sewer System, Series B
5.25%, 06/15/29
Insured: FSA..................... 942,500
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
NEW YORK MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
NEW YORK (CONTINUED)
$1,725,000 New York City MWFA,
Water & Sewer System, Series C
5.00%, 06/15/21
Insured: FGIC.................... $ 1,597,781
3,000,000 New York City
Transitional Finance Authority,
Future, Revenue, Series C
5.50%, 11/01/29.................. 2,947,500
2,000,000 New York City Trust For
Cultural Resources,
Revenue American Museum of
Natural History, Class A
5.60%, 04/01/18
Insured: MBIA.................... 2,025,000
1,000,000 New York State, GO,
Pre-refunded 11/15/02
6.13%, 11/15/10.................. 1,043,750
3,000,000 New York State, GO
5.25%, 03/01/15.................. 2,996,250
2,500,000 New York State, GO, Series F
5.25%, 09/15/13.................. 2,528,125
2,000,000 New York State
Dormitory Authority,
City University System
Consolidated 2nd Generation,
Series A
6.13%, 07/01/13
Insured: AMBAC................... 2,190,000
2,000,000 New York State
Dormitory Authority,
Columbia University
5.00%, 07/01/18.................. 1,915,000
1,675,000 New York State
Dormitory Authority,
Fordham University
5.00%, 07/01/28
Insured: MBIA.................... 1,522,156
1,000,000 New York State
Dormitory Authority,
Ithaca College
5.00%, 07/01/21.................. 931,250
1,175,000 New York State
Dormitory Authority,
Mount Sinai School of Medicine
Series B
5.70%, 07/01/11
Insured: MBIA.................... 1,249,906
30,000 New York State
Dormitory Authority,
New York University,
Pre-refunded 07/01/01
6.25%, 07/01/09
Insured: FGIC.................... 30,979
470,000 New York State
Dormitory Authority,
New York University,
Unrefunded Balance
6.25%, 07/01/09
Insured: FGIC.................... 484,048
1,000,000 New York State
Dormitory Authority,
New York University, Series A
6.00%, 07/01/17
Insured: MBIA.................... 1,083,750
PAR VALUE VALUE
---------- -------------
NEW YORK (CONTINUED)
$2,000,000 New York State
Dormitory Authority,
New York University, Series A
5.75%, 07/01/20
Insured: MBIA.................... $ 2,095,000
2,225,000 New York State
Dormitory Authority,
Rochester Institute of Technology
5.30%, 07/01/17
Insured: MBIA.................... 2,197,187
1,500,000 New York State
Dormitory Authority,
Rockefeller University
5.00%, 07/01/28.................. 1,380,000
1,000,000 New York State
Dormitory Authority,
State University
Dormitory Facilities,
Series A
6.00%, 07/01/30.................. 1,027,500
1,125,000 New York State
Dormitory Authority,
University of Rochester,
Series A
5.00%, 07/01/27
Insured: MBIA.................... 1,025,156
100,000 New York State EFC,
PCR State Water, Series A
6.40%, 09/15/06.................. 105,250
500,000 New York State EFC,
PCR State Water, Series B
6.50%, 09/15/08.................. 525,625
1,000,000 New York State EFC,
PCR State Water, Series E
5.00%, 06/15/13
Insured: MBIA.................... 996,250
100,000 New York State EFC,
PCR State Water,
Series E
Pre-refunded 06/15/01
6.88%, 06/15/10.................. 103,500
2,000,000 New York State
Highway & Bridge Authority,
Series B-1
5.75%, 04/01/16
Insured: FGIC.................... 2,080,000
500,000 New York State Housing
Finance Agency,
Multifamily Mortgage Housing,
Series A
6.95%, 08/15/12.................. 524,375
300,000 New York State Local
Government Assistance Corp.
Series A
Pre-refunded 4/01/01
6.88%, 04/01/06.................. 316,125
1,500,000 New York State Local
Government Assistance Corp.
Series E
6.00%, 04/01/14
Insured: GO of New York State.... 1,642,500
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
NEW YORK MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
NEW YORK (CONTINUED)
$ 800,000 New York State Medical Care
Facilities Finance Agency,
Second Mortgage Program
Health Care Projects, Series B
6.35%, 11/01/14.................. $ 828,000
500,000 New York State Mortgage Agency
Homeowner Mortgage, Series 27
6.90%, 04/01/15.................. 520,000
3,000,000 New York State Mortgage Agency
Homeowner Mortgage,
Series 67, AMT
5.70%, 10/01/17.................. 3,000,000
1,000,000 New York State Power Authority
Revenue, General Purpose,
Series AA
Pre-refunded 1/01/02
6.38%, 01/01/12.................. 1,042,500
500,000 New York State Power Authority
Revenue, General Purpose,
Series Z
Pre-refunded 1/01/02
6.63%, 01/01/12.................. 522,500
500,000 Onondaga County, GO
5.88%, 02/15/10.................. 540,000
100,000 Orleans County, GO
6.50%, 09/15/08.................. 111,125
200,000 Port Authority of New York
and New Jersey,
Consolidated Loan,
Series 71
6.90%, 07/15/09.................. 202,864
500,000 Port Authority of New York
and New Jersey,
Consolidated Loan,
Series 78
6.50%, 04/15/11.................. 517,500
1,000,000 Port Authority of New York
and New Jersey, SP OB,
JFK International Air Terminal,
Series 6, AMT
6.00%, 12/01/07
Insured: MBIA.................... 1,081,250
545,000 Rensselaer County, GO
5.25%, 06/01/11
Insured: AMBAC................... 562,713
2,000,000 Triborough Bridge
and Tunnel Authority,
Revenue, General Purpose,
Series B
5.50%, 01/01/30.................. 1,962,500
500,000 Triborough Bridge
and Tunnel Authority,
Revenue, General Purpose,
Series X
6.00%, 01/01/06.................. 508,750
500,000 Triborough Bridge
and Tunnel Authority,
Revenue, General Purpose,
Series X
6.00%, 01/01/07.................. 508,125
750,000 Triborough Bridge
and Tunnel Authority,
Revenue, General Purpose,
Series X
6.00%, 01/01/08.................. 762,188
PAR VALUE VALUE
---------- -------------
NEW YORK (CONTINUED)
$ 300,000 Triborough Bridge
and Tunnel Authority,
Revenue, General Purpose,
Series X
6.63%, 01/01/12.................. $ 343,125
750,000 Triborough Bridge
and Tunnel Authority,
Revenue, General Purpose,
Series Y
6.00%, 01/01/12.................. 818,438
2,000,000 Triborough Bridge
and Tunnel Authority,
Revenue, General Purpose,
Series Y
5.50%, 01/01/17.................. 2,055,000
80,000 Triborough Bridge
and Tunnel Authority,
Revenue, SP OB
Pre-refunded 01/01/02
6.10%, 01/01/05
Insured: FGIC.................... 82,700
20,000 Triborough Bridge
and Tunnel Authority,
Revenue, SP OB
Unrefunded Balance
6.10%, 01/01/05
Insured: FGIC.................... 20,675
50,000 Triborough Bridge
and Tunnel Authority,
Revenue, SP OB
Unrefunded Balance
6.15%, 01/01/06
Insured: FGIC.................... 51,625
500,000 United Nations Development Corp.
Senior Lien, Series A
Pre-refunded 07/01/03
6.00%, 07/01/06.................. 528,750
1,000,000 United Nations Development Corp.
Senior Lien, Series A
Pre-refunded 07/01/03
6.00%, 07/01/12.................. 1,057,500
500,000 United Nations Development Corp.
Subordinated Lien, Series B
Pre-refunded 07/01/03
6.20%, 07/01/11.................. 531,250
-------------
83,763,674
-------------
PENNSYLVANIA - 0.81%
2,210,000 Elizabeth Forward School District, GO
Capital Appreciation, Series B
5.68%, 09/01/20 (A).............. 721,013
-------------
PUERTO RICO - 1.25%
1,000,000 Puerto Rico
Electric Power Authority,
Series BB
6.00%, 07/01/12
Insured: MBIA.................... 1,112,500
-------------
TOTAL MUNICIPAL SECURITIES ...... 85,597,187
-------------
(Cost $84,237,494)
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
NEW YORK MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
SHARES VALUE
---------- -------------
INVESTMENT COMPANIES - 2.86%
2,317,823 Dreyfus Tax-Exempt Cash
Management Fund.................. $ 2,317,823
233,476 Federated New York Municipal
Cash Trust....................... 233,476
-------------
TOTAL INVESTMENT COMPANIES ...... 2,551,299
-------------
(Cost $2,551,299)
TOTAL INVESTMENTS - 98.81%....................... 88,148,486
-------------
(Cost $86,788,793)
NET OTHER ASSETS AND LIABILITIES - 1.19%......... 1,062,830
-------------
NET ASSETS - 100.00%............................. $ 89,211,316
=============
-------------------------------
(A) Zero coupon bond. Rate shown reflects the effective yield to maturity
at time of purchase.
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax. Private activity obligations the interest on
which is subject to the federal AMT for individuals.
EFC Environmental Facilities Corp.
FGIC Federal Guaranty Insurance Corp.
FSA Financial Security Assurance Company
GO General Obligation
MBIA Municipal Bond Insurance Association
MWFA Municipal Water Finance Authority
PCR Pollution Control Revenue
SP OB Special Obligation
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
RHODE ISLAND MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MUNICIPAL SECURITIES - 98.20%
ALASKA - 1.08%
$2,000,000 North Slope Boro
Capital Appreciation,
Series B, GO
5.11%, 06/30/09 (A)
Insured: MBIA.................... $ 1,290,000
-------------
ILLINOIS - 0.82%
1,000,000 Chicago Board of Education, GO
5.50%, 12/01/31
Insured: FGIC.................... 972,500
-------------
MASSACHUSETTS - 2.39%
3,000,000 Massachusetts Bay
Transportation Authority,
Revenue Assessment, Series A
5.25%, 07/01/30.................. 2,846,250
-------------
NEVADA - 0.22%
300,000 Nevada State, GO,
Projects 66 & 67,
Series A
5.00%, 05/15/28
Insured: FGIC.................... 267,000
-------------
NEW JERSEY - 1.25%
1,500,000 New Jersey
State Turnpike Authority,
Series A
5.50%, 01/01/30
Insured: MBIA.................... 1,485,000
-------------
PUERTO RICO - 7.32%
250,000 Puerto Rico Commonwealth, GO
6.00%, 07/01/16
Insured: MBIA.................... 276,562
3,500,000 Puerto Rico Commonwealth,
Capital Appreciation GO
4.85%, 07/01/14 (A)
Insured: FSA-CR.................. 1,728,125
500,000 Puerto Rico Commonwealth,
Public Improvement GO
5.50%, 07/01/12
Insured: FSA..................... 538,750
500,000 Puerto Rico Commonwealth
Special Tax Revenue,
Infrastructure Finance Authority,
Series A
5.00%, 07/01/16
Insured: AMBAC................... 490,625
500,000 Puerto Rico
Electric Power Authority
Revenue, Series EE
5.25%, 07/01/15
Insured: MBIA.................... 506,875
PAR VALUE VALUE
---------- -------------
PUERTO RICO (CONTINUED)
$ 360,000 Puerto Rico
Industrial Tourist Educational
Medical & Environmental Control
Facilities,
Inter American University,
Series A
5.25%, 10/01/12
Insured: MBIA.................... $ 373,950
1,550,000 Puerto Rico
Industrial Tourist Educational
Medical & Environmental Control
Facilities,
Inter American University,
Series A
5.38%, 10/01/13
Insured: MBIA.................... 1,613,937
350,000 Puerto Rico
Industrial Tourist Educational
Medical & Environmental Control
Facilities,
Inter American University,
Series A
5.50%, 10/01/14
Insured: MBIA.................... 364,875
400,000 Puerto Rico
Municipal Finance Agency,
Series A
6.00%, 07/01/14
Insured: FSA..................... 429,500
315,000 Puerto Rico
Municipal Finance Agency,
GO, Series A
5.50%, 07/01/17
Insured: FSA..................... 321,694
2,000,000 Puerto Rico
Public Buildings Authority,
Series M
5.75%, 07/01/15
Insured: FSA..................... 2,065,000
-------------
8,709,893
-------------
RHODE ISLAND - 84.23%
1,080,000 Bristol County
Water Authority Revenue,
GO, Series A
5.20%, 12/01/13
Insured: MBIA.................... 1,085,400
1,000,000 Bristol County
Water Authority Revenue,
GO, Series A
5.20%, 12/01/14
Insured: MBIA.................... 998,750
500,000 Bristol County
Water Authority Revenue,
GO, Series A
5.00%, 07/01/16
Insured: MBIA.................... 482,500
200,000 Burrillville, GO
5.85%, 05/01/14
Insured: FGIC.................... 209,500
1,505,000 Central Falls
Detention Facility Corp.,
Donald Wyatt Detention Facility,
Series A
5.25%, 01/15/13.................. 1,497,475
1,000,000 Central Falls
Detention Facility Corp.,
Donald Wyatt Detention Facility,
Series A
5.38%, 01/15/18.................. 971,250
1,000,000 Convention Center Authority,
Series A
5.50%, 05/15/13
Insured: AMBAC................... 1,026,250
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
RHODE ISLAND MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
RHODE ISLAND (CONTINUED)
$ 500,000 Convention Center Authority,
Series A
6.38%, 05/15/23
Insured: MBIA.................... $ 515,180
1,000,000 Cranston, GO
6.10%, 06/15/10
Insured: MBIA.................... 1,072,500
1,500,000 Cranston, GO
6.10%, 06/15/15
Insured: MBIA.................... 1,580,625
1,000,000 Exeter West Greenwich
Regional School District, GO
5.40%, 11/15/10
Insured: MBIA.................... 1,045,000
500,000 Kent County Water Authority,
Series A
6.00%, 07/15/08
Insured: MBIA.................... 528,750
500,000 Lincoln, GO
5.50%, 08/15/10
Insured: MBIA.................... 515,625
995,000 North Kingstown, GO
5.60%, 10/01/16
Insured: FGIC.................... 1,022,362
500,000 North Kingstown, GO
5.75%, 10/01/19
Insured: FGIC.................... 513,750
1,100,000 North Providence
School Improvement Bonds,
Series A
6.00%, 07/01/12
Insured: MBIA.................... 1,188,000
500,000 North Providence
School Improvement Bonds,
Series A
6.05%, 07/01/13
Insured: MBIA.................... 538,125
500,000 Pawtucket, GO
5.70%, 01/15/06
Insured: MBIA.................... 516,250
300,000 Pawtucket, GO
5.63%, 04/15/07
Insured: MBIA.................... 312,375
1,085,000 Providence, GO
5.10%, 01/15/06
Insured: FSA..................... 1,112,125
500,000 Providence, GO
5.45%, 01/15/10
Insured: FSA..................... 523,125
400,000 Providence, GO
5.75%, 04/15/11
Insured: FGIC.................... 416,000
1,825,000 Providence, GO Series A
5.70%, 07/15/12
Insured: FSA..................... 1,927,656
350,000 Providence Housing
Development Corp.,
Mortgage Revenue, Section 8,
Barbara Jordan Apartments,
Series A
6.50%, 07/01/09
Insured: MBIA/FHA................ 369,687
PAR VALUE VALUE
---------- -------------
RHODE ISLAND (CONTINUED)
$ 500,000 Providence
Public Building Authority,
Series A
5.40%, 12/15/11
Insured: FSA..................... $ 511,875
2,035,000 Providence
Public Building Authority,
School & Public
Facilities Project,
Series A
5.38%, 12/15/11
Insured: FSA..................... 2,093,506
500,000 Providence
Public Building Authority,
School & Public
Facilities Project,
Series A
5.13%, 12/15/14
Insured: FSA..................... 495,625
1,500,000 Providence
Public Building Authority,
School & Public
Facilities Project,
Series A
5.25%, 12/15/14
Insured: FSA..................... 1,507,500
1,000,000 Rhode Island Board Authority,
State Public Projects,
Series A
5.25%, 02/01/10
Insured: AMBAC................... 1,023,750
435,000 Rhode Island
Clean Water Protection
Finance Agency PCR, Series A
5.88%, 10/01/15
Insured: MBIA.................... 452,400
500,000 Rhode Island
Clean Water Protection
Finance Agency, PCR, Series A
5.25%, 10/01/16
Insured: AMBAC................... 494,375
150,000 Rhode Island
Clean Water Protection
Finance Agency,
Safe Drinking Water
Providence, Series A
6.20%, 01/01/06
Insured: AMBAC................... 159,562
500,000 Rhode Island
Clean Water Protection
Finance Agency,
Safe Drinking Water
Providence, Series A
6.50%, 01/01/09
Insured: AMBAC................... 538,750
100,000 Rhode Island
Clean Water Protection
Finance Agency,
Safe Drinking Water
Providence, Series A
6.70%, 01/01/15
Insured: AMBAC................... 108,250
500,000 Rhode Island
Clean Water Protection
Finance Agency Wastewater
Treatment System, Cranston
5.80%, 09/01/22
Insured: MBIA.................... 501,250
4,600,000 Rhode Island Depositors Economic
Protection Corp., SP OB,
Series A
6.40%, 08/01/06.................. 5,008,250
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE>
RHODE ISLAND MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
RHODE ISLAND (CONTINUED)
$ 500,000 Rhode Island Depositors Economic
Protection Corp., SP OB, Series A
6.50%, 08/01/07
Insured: FSA..................... $ 553,125
2,500,000 Rhode Island Depositors Economic
Protection Corp., SP OB, Series A
5.88%, 08/01/11.................. 2,715,625
1,000,000 Rhode Island Depositors Economic
Protection Corp., SP OB, Series B
5.80%, 08/01/12
Insured: MBIA.................... 1,077,500
1,000,000 Rhode Island Depositors Economic
Protection Corp., SP OB, Series A
5.75%, 08/01/14
Insured: FSA..................... 1,057,500
250,000 Rhode Island Depositors Economic
Protection Corp., SP OB, Series B
Pre-refunded 02/01/11
5.25%, 08/01/21
Insured: MBIA.................... 256,875
500,000 Rhode Island Depositors Economic
Protection Corp., SP OB, Series A
5.75%, 08/01/21.................. 518,750
1,500,000 Rhode Island Port Authority EDC,
Shepard Building Project,
Series B
6.75%, 06/01/15
Insured: AMBAC................... 1,635,000
200,000 Rhode Island State, GO, Series A
6.10%, 06/15/03.................. 208,000
1,410,000 Rhode Island State, GO, Series A
6.25%, 06/15/07
Insured: FGIC.................... 1,473,450
330,000 Rhode Island State, GO, Series A
Pre-refunded 06/15/02
6.25%, 06/15/07
Insured: FGIC.................... 345,675
2,580,000 Rhode Island State
Consolidated Capital
Development Loan,
GO, Series A
5.25%, 09/01/08.................. 2,670,300
1,000,000 Rhode Island State
Consolidated Capital
Development Loan,
GO, Series A
5.25%, 07/15/10
Insured: FGIC.................... 1,032,500
1,250,000 Rhode Island State
Consolidated Capital
Development Loan,
GO, Series A
5.20%, 09/01/11
Insured: FGIC.................... 1,281,250
2,680,000 Rhode Island State
Consolidated Capital
Development Loan,
GO, Series A
5.00%, 09/01/14
Insured: FGIC.................... 2,616,350
3,240,000 Rhode Island State
Consolidated Capital
Development Loan,
GO, Series A
5.50%, 09/01/15
Insured: FGIC.................... 3,292,650
PAR VALUE VALUE
---------- -------------
RHODE ISLAND (CONTINUED)
$2,425,000 Rhode Island State
Consolidated Capital
Development Loan,
GO, Series A
5.00%, 09/01/16
Insured: FGIC.................... $ 2,318,906
1,120,000 Rhode Island State EDC Airport,
Series A, AMT
6.00%, 07/01/07
Insured: FGIC.................... 1,188,600
1,620,000 Rhode Island State EDC Airport,
Series B
5.00%, 07/01/15
Insured: FSA..................... 1,577,475
500,000 Rhode Island State EDC Airport,
Series B
5.00%, 07/01/18
Insured: FSA..................... 473,125
500,000 Rhode Island State EDC Airport,
Series B
5.00%, 07/01/23
Insured: FSA..................... 462,500
225,000 Rhode Island State EDC Airport,
Series B
5.00%, 07/01/28
Insured: FSA..................... 203,344
750,000 Rhode Island State EDC,
University of Rhode Island
Steam Generation Facility Project
5.00%, 11/01/19
Insured: FSA..................... 707,813
1,215,000 Rhode Island State HEBC
Higher Education Facility,
Brown University
4.75%, 09/01/14.................. 1,143,619
1,000,000 Rhode Island State HEBC
Higher Education Facility,
Brown University
5.00%, 09/01/15.................. 976,250
1,000,000 Rhode Island State HEBC
Higher Education Facility,
Brown University
5.00%, 09/01/17.................. 947,500
500,000 Rhode Island State HEBC
Higher Education Facility,
Brown University
6.00%, 09/01/20.................. 513,750
1,000,000 Rhode Island State HEBC
Higher Education Facility,
Brown University
5.00%, 09/01/23.................. 913,750
275,000 Rhode Island State HEBC
Higher Education Facility,
Bryant College SP OB
6.50%, 06/01/05
Insured: MBIA.................... 288,063
1,420,000 Rhode Island State HEBC
Higher Education Facility,
Johnson & Wales
5.50%, 04/01/18.................. 1,437,750
475,000 Rhode Island State HEBC
Higher Education Facility,
New England Institute
6.00%, 03/01/15
Insured: Connie Lee.............. 493,406
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE>
RHODE ISLAND MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
RHODE ISLAND (CONTINUED)
$ 400,000 Rhode Island State HEBC
Higher Education Facility,
New England Institute
5.90%, 03/01/10
Insured: Connie Lee.............. $ 413,500
300,000 Rhode Island State HEBC
Higher Education Facility,
Providence College
5.60%, 11/01/09
Insured: MBIA.................... 309,375
500,000 Rhode Island State HEBC
Higher Education Facility,
Rhode Island School of Design
5.63%, 06/01/16
Insured: MBIA.................... 506,875
2,000,000 Rhode Island State HEBC
Higher Education Facility,
Roger Williams
5.13%, 11/15/14
Insured: AMBAC................... 1,962,500
1,000,000 Rhode Island State HEBC
Higher Education Facility,
Roger Williams
5.25%, 11/15/16
Insured: Connie Lee.............. 978,750
1,000,000 Rhode Island State HEBC
Higher Education Facility,
Roger Williams
5.00%, 11/15/18
Insured: AMBAC................... 931,250
325,000 Rhode Island State HEBC
Higher Education Facility,
Roger Williams
6.50%, 11/15/24
Insured: Connie Lee.............. 344,094
300,000 Rhode Island State HEBC
Higher Education Facility,
Saint Antoine
6.75%, 11/15/18
LOC: Allied Island State HMFC.... 324,375
260,000 Rhode Island State HEBC
Higher Education Facility,
Salve Regina
6.25%, 03/15/13
Insured: Connie Lee.............. 272,025
180,000 Rhode Island State HEBC
Higher Education Facility
6.50%, 11/15/08
Insured: Connie Lee.............. 188,775
PAR VALUE VALUE
---------- -------------
RHODE ISLAND (CONTINUED)
$ 175,000 Rhode Island State HEBC
Higher Education Facility
6.50%, 11/15/24
Insured: Connie Lee.............. $ 183,969
500,000 Rhode Island State HEBC,
Kent County Hospital
7.00%, 07/01/10
Insured: MBIA.................... 517,220
2,000,000 Rhode Island State HEBC,
Landmark Medical
5.60%, 10/01/12
Insured: FSA..................... 2,032,500
500,000 Rhode Island State HEBC,
Miriam Hospital, Series B
6.60%, 04/01/19.................. 533,125
850,000 Rhode Island State HMFC,
Homeownership Opportunity,
Series E-1
7.50%, 10/01/11
Insured: FHA..................... 872,670
2,000,000 Rhode Island State HMFC,
Homeownership Opportunity,
Series 13
6.70%, 10/01/15.................. 2,107,500
300,000 Rhode Island State HMFC
Homeownership Opportunity,
Series 17-A
6.25%, 04/01/17.................. 310,875
2,000,000 Rhode Island State HMFC
Homeownership Opportunity,
Series 19-A
5.70%, 04/01/15.................. 2,040,000
1,000,000 Rhode Island State HMFC
Homeownership Opportunity,
Series 22-A
5.55%, 04/01/17.................. 1,001,250
500,000 Rhode Island State HMFC
Homeownership Opportunity,
Series 29-A
5.05%, 10/01/15
Insured: FHA..................... 473,750
2,000,000 Rhode Island State HMFC,
Homeownership Opportunity
Series 30-A
4.90%, 10/01/14
Insured: GNMA/FNMA............... 1,957,500
1,500,000 Rhode Island State HMFC,
Homeownership Opportunity,
Series 33-B
5.75%, 04/01/22.................. 1,520,625
2,000,000 Rhode Island State HMFC,
Homeownership Opportunity,
Series 34-A
5.75%, 10/01/31.................. 1,987,500
1,000,000 Rhode Island State HMFC,
Multi-Family Housing, Series A
5.55%, 07/01/05
Insured: AMBAC/FHA............... 1,032,500
500,000 Rhode Island State HMFC
Multifamily Housing, Series A
5.60%, 07/01/10
Insured: AMBAC................... 519,375
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE>
RHODE ISLAND MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
RHODE ISLAND (CONTINUED)
$ 500,000 Rhode Island State HMFC
Multifamily Housing, Series A
6.15%, 07/01/17
Insured: AMBAC................... $ 517,500
1,250,000 Rhode Island State HMFC
Rental Housing Program, Series A
5.65%, 10/01/07.................. 1,278,125
500,000 Rhode Island State
Industrial Facilities Corp.,
Industrial Development Revenue,
Cre Corp. Project
6.50%, 03/01/14
LOC: Fleet Bank.................. 536,875
2,750,000 Rhode Island State
Industrial Facilities Corp.,
Revenue Marine Terminal,
Mobil Oil Refining
6.00%, 11/01/14.................. 2,887,500
1,000,000 Rhode Island State
Turnpike & Bridge Authority
5.00%, 12/01/11.................. 991,250
400,000 Rhode Island State
Turnpike & Bridge Authority
5.35%, 12/01/17.................. 390,500
100,000 South Kingstown, GO, Series B
5.50%, 06/15/10
Insured: FSA..................... 104,875
500,000 South Kingstown, GO
6.25%, 06/15/19
Insured: FGIC.................... 536,250
1,180,000 Warwick, GO, Series A
5.00%, 03/01/15
Insured: FGIC.................... 1,149,025
1,205,000 Warwick, GO, Series A
5.00%, 03/01/16
Insured: FGIC.................... 1,164,331
140,000 Westerly, GO
6.00%, 09/15/14
Insured: AMBAC................... 146,825
-------------
100,268,688
-------------
WASHINGTON - 0.45%
1,000,000 Seattle, GO, Series E
4.85%, 12/15/12 (A).............. 532,500
-------------
WISCONSIN - 0.44%
500,000 Milwaukee County, GO, Series A
5.70%, 09/01/15.................. 526,875
-------------
TOTAL MUNICIPAL SECURITIES ...... 116,898,706
-------------
(Cost $115,683,991)
SHARES VALUE
---------- -------------
INVESTMENT COMPANIES - 0.81%
317,393 Dreyfus Tax-Exempt Cash
Management Fund.................. $ 317,393
648,906 Federated Tax-Free
Obligations Fund ................ 648,906
-------------
TOTAL INVESTMENT COMPANIES ...... 966,299
-------------
(Cost $966,299)
TOTAL INVESTMENTS - 99.01%....................... 117,865,005
-------------
(Cost $116,650,290)
NET OTHER ASSETS AND LIABILITIES - 0.99%......... 1,173,222
-------------
NET ASSETS - 100.00%............................. $ 119,038,227
=============
----------------------------
(A) Zero coupon bond. Rate shown reflects effective yield to maturity at
time of purchase.
AMT Alternative Minimum Tax. Private activity obligations the interest
on which is subject to the federal AMT for individuals.
AMBAC American Municipal Bond Assurance Corp.
Connie Lee College Construction Loan Association
EDC Economic Development Corp.
FGIC Federal Guaranty Insurance Corp.
FHA Federal Housing Authority
FNMA Federal National Mortgage Association
FSA Financial Security Assurance Company
FSA-CR FSA Custodian Receipts
GNMA Government National Mortgage Association
GO General Obligation
HEBC Health and Education Building Corp.
HMFC Housing and Mortgage Finance Corp.
LOC Line of Credit
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
SP OB Special Obligation
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE>
INTERMEDIATE TAX-EXEMPT BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MUNICIPAL BONDS - 100.22%
ALASKA - 2.86%
$5,050,000 Anchorage, GO
6.00%, 10/01/04
Insured: FGIC.................... $ 5,308,812
3,000,000 North Slope Boro,
Capital Appreciation,
Series B, GO
4.68%, 01/01/03 (B)
Insured: MBIA.................... 2,707,500
-------------
8,016,312
-------------
ARIZONA - 1.49%
4,000,000 Pima County
Unified School District No. 1
Tucson, GO
5.88%, 07/01/14
Insured: FGIC.................... 4,140,000
-------------
CALIFORNIA - 1.70%
1,500,000 California State, GO
5.50%, 02/01/10.................. 1,610,625
1,830,000 California State HFA,
Home Mortgage, Series K
5.95%, 08/01/10
Insured: MBIA.................... 1,935,225
1,135,000 Los Angeles County,
Metropolitan Transportation
Authority,
Series A
5.70%, 07/01/12
Insured: AMBAC................... 1,201,681
-------------
4,747,531
-------------
COLORADO - 2.55%
1,250,000 Colorado Department of
Transportation, RAN
6.00%, 06/15/12
Insured: AMBAC................... 1,351,562
3,500,000 Colorado Department of
Transportation, RAN
6.00%, 06/15/15
Insured: AMBAC................... 3,731,875
2,000,000 Denver, Multi-Family
Housing Authority
Revenue, Section 8, Series A
5.35%, 10/01/12
Insured: HUD..................... 2,010,000
-------------
7,093,437
-------------
CONNECTICUT - 1.02%
2,750,000 Connecticut State
Special Tax Obligation
Authority Revenue,
Transportation Infrastructure,
Series B
5.50%, 10/01/12
Insured: MBIA.................... 2,849,687
-------------
DISTRICT OF COLUMBIA - 4.36%
2,000,000 District of Columbia, GO Series A
5.88%, 06/01/05
Insured: FS-CR................... 2,100,000
PAR VALUE VALUE
---------- -------------
DISTRICT OF COLUMBIA (CONTINUED)
$2,500,000 District of Columbia, GO Series A
5.00%, 06/01/15
Insured: MBIA.................... $ 2,387,500
2,000,000 District of Columbia, GO Series B
5.50%, 06/01/10
Insured: FSA..................... 2,090,000
1,000,000 District of Columbia,
Georgetown University, Series A
5.95%, 04/01/14
Insured: MBIA.................... 1,052,500
4,500,000 Washington Convention
Center Revenue,
Senior Lien
5.25%, 10/01/14
Insured: AMBAC................... 4,505,625
-------------
12,135,625
-------------
FLORIDA - 1.85%
2,000,000 Florida State Board of Education
Capital Outlay, GO,
Series E
5.70%, 06/01/14.................. 2,045,000
2,900,000 Florida State Department of
Environmental Protection Revenue,
Series A
5.75%, 07/01/08
Insured: FGIC.................... 3,099,375
-------------
5,144,375
-------------
GEORGIA - 4.04%
1,000,000 Georgia State, GO, Series B
5.75%, 08/01/08.................. 1,072,500
3,000,000 Georgia State, GO, Series D
5.80%, 11/01/10.................. 3,255,000
4,000,000 Georgia State, GO, Series D
5.80%, 11/01/12.................. 4,310,000
2,555,000 Georgia State, GO, Series E
5.50%, 07/01/03.................. 2,625,262
-------------
11,262,762
-------------
HAWAII - 1.36%
3,330,000 Hawaii State, GO Series CM
6.50%, 12/01/14
Insured: FGIC.................... 3,792,037
-------------
ILLINOIS - 0.74%
2,000,000 Chicago O'Hare
International Airport Revenue,
Passenger Facilities Charge,
Series A
5.63%, 01/01/12
Insured: AMBAC................... 2,060,000
-------------
INDIANA - 0.70%
1,900,000 Indiana State
Revolving Fund Program,
Series A
5.90%, 02/01/03.................. 1,954,625
-------------
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE>
INTERMEDIATE TAX-EXEMPT BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MAINE - 1.89%
$1,500,000 Maine Health & Higher Educational
Facilities Authority Revenue,
Series A
4.75%, 07/01/13
Insured: MBIA.................... $ 1,438,125
1,705,000 Maine Municipal
Bond Bank Revenue,
Series A
5.25%, 11/01/08
Insured: FSA..................... 1,771,069
2,000,000 Maine State
Housing Authority Revenue,
Series C-1
5.70%, 11/15/15.................. 2,045,000
-------------
5,254,194
-------------
MASSACHUSETTS - 12.66%
1,365,000 Holyoke, GO Series A
5.60%, 06/15/10
Insured: FSA..................... 1,431,544
1,290,000 Massachusetts Bay
Transportation Authority Revenue,
General Transportation Systems,
Series A
5.50%, 03/01/12
Insured: MBIA.................... 1,352,887
1,000,000 Massachusetts Bay
Transportation Authority Revenue,
General Transportation Systems,
Series C
5.50%, 03/01/08.................. 1,051,250
3,000,000 Massachusetts Bay
Transportation Authority,
Revenue Assessment, Series A
5.75%, 07/01/14.................. 3,153,750
2,000,000 Massachusetts Municipal
Wholesale Electric Co.
Power Supply System
5.15%, 07/01/16
Insured: AMBAC................... 1,922,500
2,000,000 Massachusetts State,
Consolidated Loan, GO, Series B
5.50%, 06/01/11
Insured: FGIC.................... 2,077,500
1,500,000 Massachusetts State,
Consolidated Loan, GO, Series B
5.13%, 06/01/12
Insured: FGIC.................... 1,516,875
1,500,000 Massachusetts State,
Consolidated Loan, GO, Series C
5.00%, 08/01/14
Insured: AMBAC................... 1,481,250
1,000,000 Massachusetts State HEFA
Dana Farber Cancer Project,
Series G-1
6.25%, 12/01/08.................. 1,041,250
1,000,000 Massachusetts State HEFA
Eye & Ear Infirmary, Series B
5.25%, 07/01/11
Insured: ACA..................... 996,250
1,000,000 Massachusetts State HEFA
Suffolk University Project,
Series C
5.85%, 07/01/16
Insured: Connie Lee.............. 1,035,000
475,000 Massachusetts State HFA
Multi-Family Housing Project,
Series A
5.60%, 07/01/07
Insured: MBIA.................... 496,375
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$ 475,000 Massachusetts State HFA
Multi-Family Housing Project,
Series A
5.70%, 07/01/08
Insured: MBIA.................... $ 496,969
1,090,000 Massachusetts State IFA
Assumption College Issue
5.88%, 07/01/11
Insured: Connie Lee.............. 1,160,850
1,250,000 Massachusetts State IFA
Ogden Haverhill Project,
Series A, AMT
5.15%, 12/01/07.................. 1,207,812
1,710,000 Massachusetts State IFA
Ogden Project, Series A
4.95%, 12/01/06.................. 1,650,150
1,595,000 Massachusetts State IFA
Refusetech, Inc.
Project, Series A
6.15%, 07/01/02.................. 1,616,931
3,220,000 Massachusetts State IFA
Refusetech, Inc.
Project, Series A
6.30%, 07/01/05.................. 3,320,625
5,000,000 New England Education
Loan Marketing Corp., Series A
5.70%, 07/01/05.................. 5,193,750
3,000,000 New England Education
Loan Marketing Corp., Series F
5.63%, 07/01/04.................. 3,071,250
-------------
35,274,768
-------------
MICHIGAN - 2.29%
3,250,000 Michigan State
Building Authority,
Facilities Program, Series I
4.75%, 10/15/13
Insured: MBIA.................... 3,111,875
3,220,000 Michigan State House of
Representatives, COP
5.25%, 08/15/14
Insured: AMBAC................... 3,272,325
-------------
6,384,200
-------------
MINNESOTA - 0.91%
2,490,000 Northern Municipal Power Agency,
Minnesota Electric System
5.25%, 01/01/12
Insured: FSA..................... 2,533,575
-------------
MISSISSIPPI - 0.74%
2,000,000 Mississippi State
Highway Authority
Revenue, Four Lane
Highway Project
5.25%, 06/01/06.................. 2,057,500
-------------
MISSOURI - 1.09%
3,000,000 St. Charles County,
Public Water Supply
District No. 2, COP, Series A
5.50%, 12/01/14
Insured: MBIA.................... 3,041,250
-------------
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE>
INTERMEDIATE TAX-EXEMPT BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
NEBRASKA - 2.35%
$3,625,000 Nebraska State,
American Public
Energy Agency Revenue,
Public Gas Agency Project,
Series A
5.25%, 06/01/11
Insured: AMBAC................... $ 3,498,125
3,000,000 Nebraska Investment
Finance Authority,
Single Family Housing Revenue,
Series A
5.75%, 09/01/25.................. 3,048,750
-------------
6,546,875
-------------
NEVADA - 2.76%
3,000,000 Las Vegas, GO
Pre-refunded 04/01/02
6.60%, 10/01/10
Insured: FGIC.................... 3,146,250
3,250,000 Las Vegas Convention &
Visitors Authority
6.00%, 07/01/13
Insured: AMBAC................... 3,489,687
1,000,000 Nevada State, GO,
Capital Improvement &
Cultural Affairs,
Series A
5.50%, 02/01/11.................. 1,041,250
-------------
7,677,187
-------------
NEW HAMPSHIRE - 1.44%
1,000,000 New Hampshire
Higher Education & Health
Facilities Authority Revenue,
Kendal at Hanover Project
5.80%, 10/01/12
LOC: Bank of Ireland............. 1,008,750
2,000,000 New Hampshire
Municipal Bond Bank, GO,
Series B
5.25%, 08/15/11
Insured: FSA..................... 2,067,500
900,000 New Hampshire State HFA,
Single-Family Mortgage Project,
Series B
5.85%, 07/01/10
Insured: FHA..................... 928,125
-------------
4,004,375
-------------
NEW JERSEY - 2.31%
3,000,000 New Jersey State Transportation
Trust Fund Revenue,
Transportation System, Series A
5.50%, 06/15/08.................. 3,157,500
3,000,000 New Jersey State
Turnpike Authority,
Series A
6.00%, 01/01/11
Insured: MBIA.................... 3,277,500
-------------
6,435,000
-------------
NEW YORK - 12.70%
1,500,000 Long Island
Power Authority Revenue,
New York Electric System,
Series A
5.50%, 12/01/12
Insured: FSA..................... 1,575,000
PAR VALUE VALUE
---------- -------------
NEW YORK (CONTINUED)
$1,000,000 Metropolitan Transportation
Authority Revenue,
Commuter Facilities, Series A
5.75%, 07/01/11
Insured: FGIC.................... $ 1,060,000
1,530,000 Metropolitan Transportation
Authority Revenue,
Commuter Facilities, Series A
5.50%, 07/01/15
Insured: FSA-CR.................. 1,558,688
1,740,000 Metropolitan Transportation
Authority Revenue,
Transportation Service Contract,
Series R
5.50%, 07/01/14.................. 1,761,750
5,000,000 New York City, GO, Series A
5.25%, 08/01/06.................. 5,143,750
1,080,000 New York City, GO, Series C
5.25%, 08/15/11.................. 1,097,550
1,000,000 New York City, GO, Series D
6.00%, 02/15/09.................. 1,053,750
600,000 New York City, GO, Series D
6.00%, 02/15/12.................. 627,000
2,000,000 New York City, GO, Series F
5.75%, 02/01/10.................. 2,100,000
1,000,000 New York City, GO, Series F
5.25%, 08/01/14.................. 990,000
1,000,000 New York State
Dormitory Authority Revenue,
Court Facilities Lease, Series A
5.50%, 05/15/10.................. 1,021,250
2,100,000 New York State
Energy Research & Development
Authority, PCR,
New York State
Electric & Gas Corp.,
Series D
4.55%, 10/01/29 (A).............. 2,100,000
3,000,000 New York State, GO,
Series C
5.38%, 10/01/11
Insured: AMBAC-TCRS.............. 3,086,250
1,720,000 New York State HFA,
Housing Mortgage Project,
Series A
5.80%, 11/01/09
Insured: FSA..................... 1,812,450
1,500,000 New York State
Urban Development Authority,
Correctional Capital Facilities
5.00%, 01/01/13
Insured: MBIA-IBC................ 1,486,875
7,225,000 New York State
Urban Development Authority,
Correctional Capital Facilities,
Series A
5.25%, 01/01/14
Insured: FSA..................... 7,369,500
1,505,000 New York State
Urban Development Authority,
Youth Facilities Project
5.70%, 04/01/14
Insured: MBIA.................... 1,546,388
-------------
35,390,201
-------------
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE>
INTERMEDIATE TAX-EXEMPT BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
NORTH CAROLINA - 5.24%
$4,000,000 North Carolina,
Eastern Municipal
Power Agency Revenue
6.00%, 01/01/14.................. $ 4,015,000
2,000,000 North Carolina,
Eastern Municipal
Power Agency Revenue,
Series B
6.00%, 01/01/13
Insured: FGIC-TCRS............... 2,070,000
1,000,000 North Carolina,
Eastern Municipal
Power Agency Revenue,
Series D
5.88%, 01/01/14.................. 996,250
5,000,000 North Carolina,
Eastern Municipal
Power Agency Revenue,
Series D
5.60%, 01/01/16
Insured: ACA IBC................. 4,937,500
2,500,000 North Carolina State,
Public Improvement, GO, Series A
5.25%, 03/01/12.................. 2,578,125
-------------
14,596,875
-------------
OHIO - 1.80%
2,495,000 Ohio State
Higher Education Capital
Facilities Authority, GO,
Series A
5.13%, 02/01/09.................. 2,569,850
2,280,000 Ohio State Infrastructure
Improvement, GO, Series A
5.75%, 02/01/11.................. 2,453,850
-------------
5,023,700
-------------
OKLAHOMA - 0.88%
2,350,000 Enid, Municipal Authority
Sales Tax & Utilities Revenue
5.50%, 02/01/06
Inusred: AMBAC................... 2,458,688
-------------
OREGON - 0.75%
2,000,000 Oregon State
Department of Transportation,
Highway Usertax Revenue
5.75%, 11/15/15.................. 2,095,000
-------------
PENNSYLVANIA - 2.58%
2,000,000 Pennsylvania State
Higher Educational Facilities,
University of Pennsylvania
Health Services,
Series A
5.25%, 01/01/13
Insured: MBIA.................... 2,017,500
2,000,000 Pennsylvania State HFA,
Single-Family Mortgage,
Series 50A
6.00%, 10/01/13.................. 2,090,000
3,000,000 Philadelphia, Water & Wastewater
Authority Revenue,
Regular Fixed Airs Project
5.65%, 06/15/12
Insured: FGIC.................... 3,078,750
-------------
7,186,250
-------------
PAR VALUE VALUE
---------- -------------
PUERTO RICO - 1.15%
$1,000,000 Puerto Rico Commonwealth, GO,
Public Improvement
5.25%, 07/01/10
Insured: FSA-CR.................. $ 1,057,500
2,000,000 Puerto Rico Commonwealth, GO,
Public Improvement
5.50%, 07/01/12
Insured: FSA-CR.................. 2,155,000
-------------
3,212,500
-------------
RHODE ISLAND - 2.30%
1,110,000 Rhode Island HMFC,
Homeownership Opportunity,
Series 15-B
6.20%, 10/01/06.................. 1,172,438
2,500,000 Rhode Island HMFC,
Homeownership Opportunity,
Series 19-A
5.70%, 04/01/15.................. 2,550,000
1,550,000 Rhode Island HMFC,
Homeownership Opportunity,
Series 33-B, AMT
5.75%, 04/01/22.................. 1,571,313
1,015,000 Rhode Island Port Authority &
Economic Development Revenue,
Shepard Building Project,
Pre-refunded 06/01/04, Series B
6.75%, 06/01/15
Insured: AMBAC................... 1,106,350
-------------
6,400,101
-------------
SOUTH CAROLINA - 0.78%
1,000,000 South Carolina State, GO,
Highway System, Series A
4.60%, 05/01/12.................. 961,250
1,150,000 South Carolina State
Public Service Authority Revenue,
Series B
5.88%, 01/01/14
Insured: FGIC.................... 1,204,625
-------------
2,165,875
-------------
TENNESSEE - 1.26%
3,400,000 Metropolitan Nashville
Airport Authority,
Tennessee Airport Revenue, Series C
6.60%, 07/01/15
Insured: FGIC.................... 3,515,158
-------------
TEXAS - 6.97%
5,050,000 Dallas-Fort Worth
Regional Airport,
Joint Revenue, Series A
6.00%, 11/01/09
Insured: MBIA.................... 5,283,563
2,150,000 Houston, GO, Series C
6.00%, 04/01/04.................. 2,249,438
5,000,000 Houston,
Water & Sewer System Revenue,
Junior Lien, Series C
4.48%, 12/01/04 (B)
Insured: AMBAC................... 4,125,000
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE>
INTERMEDIATE TAX-EXEMPT BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
TEXAS (CONTINUED)
$2,050,000 Port of Houston Authority,
Harris County, Series A, AMT
3.80%, 10/01/03.................. $ 1,968,759
2,700,000 Tarrant County,
Health Facilities Development
Corp. Authority,
Harris Methodist Health
System Project,
Series A
5.13%, 09/01/12
Insured: AMBAC................... 2,706,750
3,015,000 Texas Municipal Power Agency
Revenue
Pre-refunded 09/01/02
5.75%, 09/01/12
Insured: MBIA.................... 3,086,606
-------------
19,420,116
-------------
VIRGINIA - 3.21%
3,000,000 Richmond, GO
5.13%, 01/15/07
Insured: FSA..................... 3,082,500
4,000,000 Virginia Commonwealth
Transportation Board,
Federal Highway Reimbursement
Anticipation Note
5.50%, 10/01/03.................. 4,115,000
1,655,000 Virginia State
Housing Development Authority,
Multi-Family Housing, Series H
5.70%, 11/01/07.................. 1,733,613
-------------
8,931,113
-------------
WASHINGTON - 6.03%
2,300,000 Seattle Municipal Light &
Power Authority Revenue
5.88%, 10/01/10.................. 2,495,500
3,000,000 Washington State
Public Power Supply System,
Nuclear Project No. 1, Series A
5.00%, 07/01/13.................. 2,925,000
2,500,000 Washington State
Public Power Supply System,
Nuclear Project No. 1, Series B
5.13%, 07/01/14.................. 2,456,250
2,000,000 Washington State
Public Power Supply System,
Nuclear Project No. 3, Series A
4.23%, 07/01/13 (B)
Insured: BIG..................... 1,007,500
7,800,000 Washington State
Public Power Supply System,
Aces. & Inverse floater
5.40%, 07/01/12
Insured: FSA-CR.................. 7,926,750
-------------
16,811,000
-------------
WEST VIRGINIA - 0.93%
2,500,000 West Virginia State,
College Revenue
5.75%, 04/01/04
Insured: AMBAC................... 2,603,124
-------------
PAR VALUE VALUE
---------- -------------
WISCONSIN - 0.74%
$2,020,000 Wisconsin State
Transportation Revenue,
Series B
5.25%, 07/01/11
Insured: FGIC.................... $ 2,065,450
-------------
WYOMING - 1.79%
5,000,000 Lincoln County, PCR,
Exxon Project,
Series B
4.55%, 11/01/14 (A).............. 5,000,000
-------------
TOTAL MUNICIPAL BONDS ........... 279,280,466
-------------
(Cost $273,890,783)
SHARES
----------
INVESTMENT COMPANIES - 1.10%
335,451 Dreyfus Tax-Exempt
Cash Management ................. 335,451
2,715,152 Federated Investors Tax-Free
Obligations Fund................. 2,715,152
-------------
TOTAL INVESTMENT COMPANIES ...... 3,050,603
-------------
(Cost $3,050,603)
TOTAL INVESTMENTS - 101.32%...................... 282,331,069
-------------
(Cost $276,941,386)
NET OTHER ASSETS AND LIABILITIES - (1.32)%....... (3,670,514)
-------------
NET ASSETS - 100.00%............................. $ 278,660,555
=============
---------------------------------
(A) Variable rate bond. Rate shown reflects the rate in effect at October
31, 2000.
(B) Zero coupon bond. Rate shown reflects the effective yield to maturity
at time of purchase.
ACA American Capital Access
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax. Private activity obligations the interest
on which is subject to the federal AMT for individuals.
Connie Lee College Construction Loan Association
COP Certificate of Participation
FGIC Federal Guaranty Insurance Corp.
FHA Federal Housing Authority
FSA Financial Security Assurance Co.
FSA-CR FSA Custodial Receipts
GO General Obligation
HEFA Health and Educational Facilities Authority
HFA Housing Finance Agency
HMFC Housing and Mortgage Finance Corp.
HUD Department of Housing and Urban Development
IBC Insured Bond Certificate
IFA Industrial Finance Agency
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
RAN Revenue Anticipation Notes
TCRS Transferable Custodial Receipts
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE>
CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MUNICIPAL BONDS - 98.57%
CALIFORNIA - 1.09%
$1,660,000 Los Angeles Regional Airports
Improvement Corp., Lease Revenue,
American Airlines, Los Angeles
International Airport, Series E
4.65%, 12/01/24 (A)
LOC: Wachovia Bank, N.A.......... $ 1,660,000
-------------
CONNECTICUT - 81.58%
1,435,000 Bridgeport, GO, Series A
6.50%, 09/01/08
Insured: AMBAC................... 1,598,231
1,550,000 Bridgeport, GO, Series A
5.45%, 03/01/11
Insured: AMBAC................... 1,608,125
2,000,000 Bridgeport, GO, Series A
6.00%, 07/15/13
Insured: FGIC.................... 2,162,500
3,000,000 Bristol Resource
Recovery Facility,
Operation Committee Solid Waste,
Ogden Martin System
6.50%, 07/01/14.................. 3,131,250
2,025,000 Connecticut State,
GO, Series A
5.25%, 06/15/10.................. 2,106,000
3,000,000 Connecticut State,
GO, Series A
5.25%, 03/15/13.................. 3,052,500
2,500,000 Connecticut State,
GO, Series A
5.25%, 03/15/14.................. 2,534,375
1,000,000 Connecticut State,
GO, Series B
5.75%, 11/01/11.................. 1,076,250
1,500,000 Connecticut State,
GO, Series C
5.80%, 08/15/08.................. 1,576,875
1,500,000 Connecticut State
Clean Water Fund
5.25%, 07/15/11.................. 1,552,500
1,000,000 Connecticut State
Clean Water Fund
6.00%, 10/01/12.................. 1,100,000
1,000,000 Connecticut State,
Unrefunded Balance, Series A, GO
6.25%, 05/15/06.................. 1,083,750
1,615,000 Connecticut State HEFA
Bridgeport Hospital, Series C
5.25%, 07/01/15
Insured: Connie Lee.............. 1,610,962
2,000,000 Connecticut State HEFA
Greenwich Hospital, Series A
5.75%, 07/01/16
Insured: MBIA.................... 2,075,000
2,500,000 Connecticut State HEFA
Hospital For Special Care,
Series B
5.38%, 07/01/17
Insured: ACA-CBI................. 2,368,750
PAR VALUE VALUE
---------- -------------
CONNECTICUT (CONTINUED)
$2,740,000 Connecticut State HEFA
Hospital of Saint Raphael,
Series H
5.30%, 07/01/10
Insured: AMBAC................... $ 2,835,900
1,000,000 Connecticut State HEFA
New Britain General Hospital,
Series B
6.00%, 07/01/09
Insured: AMBAC................... 1,063,750
1,000,000 Connecticut State HEFA
New Horizons VLG Project
7.05%, 11/01/09
Insured: AMBAC-TCRS.............. 1,107,500
1,110,000 Connecticut State HEFA
Newington Childrens Hospital,
Series A
5.85%, 07/01/07
Insured: MBIA.................... 1,173,825
1,390,000 Connecticut State HEFA
Sacred Heart, Series E
4.65%, 07/01/11
Insured: Asset Guaranty.......... 1,322,237
3,400,000 Connecticut State HEFA
Sacred Heart, Series E
4.90%, 07/01/13
Insured: Asset Guaranty.......... 3,234,250
1,000,000 Connecticut State HEFA
Sharon Health Care
6.00%, 11/01/09
Insured: AMBAC-TCRS.............. 1,066,250
2,000,000 Connecticut State HEFA
Stamford Hospital, Series F
5.40%, 07/01/09
Insured: MBIA.................... 2,077,500
2,000,000 Connecticut State HEFA
Trinity College, Series E
5.80%, 07/01/16
Insured: MBIA.................... 2,075,000
1,000,000 Connecticut State HEFA
Yale-New Haven Hospital, Series H
5.63%, 07/01/16
Insured: MBIA.................... 1,017,500
3,215,000 Connecticut State HFA
Housing Mortgage Finance Program,
Series A-1
5.95%, 05/15/11.................. 3,359,675
1,350,000 Connecticut State HFA
Housing Mortgage Finance Program,
Series A
6.20%, 05/15/14.................. 1,402,312
1,000,000 Connecticut State HFA
Housing Mortgage Finance Program,
Series A-3
5.95%, 05/15/17.................. 1,030,000
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE>
CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
CONNECTICUT (CONTINUED)
$2,000,000 Connecticut State HFA
Housing Mortgage Finance Program,
Series B
6.00%, 11/15/15.................. $ 2,080,000
230,000 Connecticut State HFA
Housing Mortgage Finance Program,
Series B-1
6.00%, 05/15/08.................. 242,362
1,010,000 Connecticut State HFA |
Housing Mortgage Finance Program,
Series C-1
6.00%, 11/15/10.................. 1,059,238
430,000 Connecticut State HFA
Housing Mortgage Finance Program,
Series E
6.20%, 05/15/14.................. 448,813
4,200,000 Connecticut State HFA
Housing Mortgage Finance Program,
Series E-1
5.90%, 05/15/15.................. 4,347,000
1,030,000 Connecticut State
Higher Education
Supplemental Loan Authority
Family Educational Loan Program,
Series A
7.00%, 11/15/05.................. 1,060,673
1,215,000 Connecticut State
Higher Education
Supplemental Loan Authority
Family Education Loan Program,
Series A
5.63%, 11/15/11
Insured: AMBAC................... 1,280,306
6,125,000 Connecticut State
Resource Recovery Authority
American Fuel Co., Series A
5.13%, 11/15/14
Insured: MBIA.................... 5,987,188
2,500,000 Connecticut State
Resource Recovery Authority,
Bridgeport Resco Co. Project,
Series B
5.00%, 01/01/07
Insured: MBIA.................... 2,546,875
3,000,000 Connecticut State
Resource Recovery Authority,
Bridgeport Resco LP Co. Project,
Series B
5.13%, 01/01/09
Insured: MBIA.................... 3,078,750
4,750,000 Connecticut State
Resource Recovery Authority
Mid-Connecticut Systems,
Series A
6.25%, 11/15/05
Insured: MBIA.................... 5,124,063
2,275,000 Connecticut State
Resource Recovery Authority
Mid-Connecticut Systems,
Series A
6.25%, 11/15/06
Insured: MBIA.................... 2,465,531
2,000,000 Connecticut State
Resource Recovery Authority
Mid-Connecticut Systems,
Series A
5.38%, 11/15/10
Insured: MBIA.................... 2,077,500
PAR VALUE VALUE
---------- -------------
CONNECTICUT (CONTINUED)
$6,000,000 Connecticut State
Resource Recovery Authority
Mid-Connecticut Systems,
Series A
5.50%, 11/15/11
Insured: MBIA.................... $ 6,240,000
1,160,000 Connecticut State,
SP OB Transportation
Infrastructure, Series A
5.70%, 06/01/12
Insured: FGIC.................... 1,209,300
2,000,000 Connecticut State,
SP OB Transportation
Infrastructure,
Pre-refunded 10/01/04
6.10%, 10/01/12
Insured: FGIC.................... 2,132,500
1,000,000 Connecticut State,
SP OB Transportation
Infrastructure, Series A
5.60%, 06/01/13
Insured: FGIC.................... 1,032,500
2,100,000 Connecticut State,
SP OB Transportation
Infrastructure, Series A
5.25%, 10/01/14
Insured: FGIC.................... 2,123,625
2,000,000 Connecticut State,
SP OB Transportation
Infrastructure, Series B
5.40%, 10/01/10
Insured: MBIA.................... 2,082,500
3,920,000 Connecticut State,
SP OB Transportation
Infrastructure, Series B
5.50%, 10/01/11
Insured: FGIC.................... 4,096,400
1,445,000 Connecticut State,
SP OB Transportation
Infrastructure, Series C
6.25%, 10/01/03
Insured: FGIC.................... 1,517,250
2,000,000 Connecticut State
Special Assessment
Second Injury Fund, Series A
5.25%, 01/01/10
Insured: FSA..................... 2,075,000
1,000,000 Connecticut State
Special Assessment
Second Injury Fund, Series A
5.25%, 01/01/11
Insured: AMBAC................... 1,025,000
2,775,000 Eastern Connecticut
Resource Recovery
Authority, Solid Waste Revenue,
Wheelabrator Lisbon Project,
Series A
5.50%, 01/01/14.................. 2,442,000
500,000 Hartford, GO
5.70%, 10/01/12
Insured: FGIC.................... 524,375
1,000,000 Hartford, GO
5.75%, 10/01/13
Insured: FGIC.................... 1,045,000
1,340,000 Hartford, GO
4.70%, 01/15/15
Insured: FGIC.................... 1,246,200
1,875,000 New Haven, GO, Series A
4.70%, 02/01/15
Insured: FGIC.................... 1,743,750
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE>
CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
CONNECTICUT (CONTINUED)
$1,000,000 Norwich, GO
5.00%, 05/01/04.................. $ 1,017,500
985,000 South Central Connecticut
Regional
Water Authority Water System,
Series A
6.00%, 08/01/09
Insured: MBIA.................... 1,040,406
1,045,000 South Central Connecticut
Regional
Water Authority Water System,
Series A
6.00%, 08/01/10
Insured: MBIA.................... 1,102,475
1,000,000 University of Connecticut,
Series A
5.25%, 04/01/14
Insured: MBIA.................... 1,010,000
1,400,000 Waterbury, GO
4.80%, 02/15/12.................. 1,358,000
1,470,000 Waterbury, GO
4.90%, 02/15/13.................. 1,422,225
1,395,000 Waterbury, GO
5.00%, 02/15/14.................. 1,356,638
550,000 Westport, GO
5.38%, 08/15/14.................. 565,125
1,550,000 Westport, GO
5.38%, 08/15/15.................. 1,582,938
-------------
124,191,773
-------------
GEORGIA - 1.38%
2,000,000 Georgia State, GO, Series E
6.00%, 07/01/04.................. 2,102,500
-------------
NEW YORK - 0.66%
1,000,000 New York State Energy Research &
Development Authority, PCR,
New York State
Electric & Gas Corp.,
Series D
4.55%, 10/01/29 (B).............. 1,000,000
-------------
PUERTO RICO - 13.86%
4,500,000 Puerto Rico Commonwealth,
Capital Appreciation, GO
4.82%, 07/01/14 (C)
Insured: FSA-CR.................. 2,221,875
2,615,000 Puerto Rico Commonwealth
Highway &
Transportation Authority
5.25%, 07/01/14
Insured: MBIA.................... 2,673,838
700,000 Puerto Rico Commonwealth
Highway & Transportation
Authority,
Series X
5.30%, 07/01/04.................. 721,000
PAR VALUE VALUE
---------- -------------
PUERTO RICO (CONTINUED)
$2,500,000 Puerto Rico Commonwealth
Infrastructure
Finance Authority,
Series A
5.25%, 07/01/10
Insured: AMBAC................... $ 2,634,375
1,250,000 Puerto Rico Commonwealth,
Public Improvement, GO
5.25%, 07/01/10
Insured: FSA-CR.................. 1,321,875
3,500,000 Puerto Rico
Electric Power Authority,
Series DD
5.25%, 07/01/14
Insured: FSA..................... 3,578,750
1,000,000 Puerto Rico
Electric Power Authority,
Series Z
5.50%, 07/01/14
Insured: FSA-CR.................. 1,031,250
725,000 Puerto Rico
Industrial Tourist Educational
Medical & Environmental Control
Facilities,
Inter American University,
Series A
5.25%, 10/01/12
Insured: MBIA.................... 753,094
975,000 Puerto Rico
Industrial Tourist Educational
Medical & Environmental Control
Facilities,
Inter American University,
Series A
5.38%, 10/01/13
Insured: MBIA.................... 1,015,219
650,000 Puerto Rico
Industrial Tourist Educational
Medical & Environmental Control
Facilities,
Inter American University,
Series A
5.50%, 10/01/14
Insured: MBIA.................... 677,625
2,650,000 Puerto Rico
Municipal Finance Agency,
Series A
6.00%, 07/01/09
Insured: FSA..................... 2,845,438
1,500,000 Puerto Rico
Municipal Finance Agency,
GO, Series A
5.75%, 08/01/12
Insured: FSA..................... 1,623,750
-------------
21,098,089
-------------
TOTAL MUNICIPAL BONDS ........... 150,052,362
-------------
(Cost $148,055,490)
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE>
CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
SHARES VALUE
---------- -------------
INVESTMENT COMPANIES - 0.26%
240,325 Dreyfus Tax-Exempt Cash
Management Fund.................. $ 240,325
156,339 Federated Tax-Free
Obligations Fund................. 156,339
-------------
TOTAL INVESTMENT COMPANIES ...... 396,664
-------------
(Cost $396,664)
TOTAL INVESTMENTS - 98.83%....................... 150,449,026
-------------
(Cost $148,452,154)
NET OTHER ASSETS AND LIABILITIES - 1.17%......... 1,778,264
-------------
NET ASSETS - 100.00%............................. $ 152,227,290
=============
----------------------------
(A) Variable rate demand notes are payable upon not more than one, seven
or thirty business days notice. Put bond and notes have demand
features which matures within one year. The interest rate shown
reflects the rate in effect at October 31, 2000.
(B) Variable rate bond. Rate shown reflects rate in effect at
October 31, 2000.
(C) Zero coupon bond. Rate shown reflects effective yield to maturity at
time of purchase. ACA American Capital Access ACA-CBI ACA Certificate
of Bond Insurance
AMBAC American Municipal Bond Assurance Corp.
Connie Lee College Construction Loan Association
FGIC Federal Guaranty Insurance Corp.
FSA Financial Security Assurance Company
FSA-CR FSA Custodial Receipts
GO General Obligation
HEFA Health and Educational Facilities Authority
HFA Housing Finance Agency
MBIA Municipal Bond Insurance Association
SP OB Special Obligation
TCRS Transferable Custodial Receipts
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE>
FLORIDA MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MUNICIPAL BONDS - 94.82%
FLORIDA - 89.84%
$ 130,000 Brevard County, Housing & Finance
Authority, Series B
7.00%, 03/01/13
Insured: FSA..................... $ 134,104
1,000,000 Cape Coral, SP OB,
Water Improvement
6.38%, 06/01/09
Insured: FSA..................... 1,047,500
1,000,000 Dade County, Aviation Authority,
Series A, AMT
5.75%, 10/01/15
Insured: MBIA.................... 1,032,500
205,000 Dade County,
Housing & Finance Authority,
Single Family Mortgage Revenue,
Series D
6.95%, 12/15/12
Insured: FSA..................... 211,662
2,140,000 Dade County, School Board COP,
Series A
Pre-refunded 05/01/04
5.75%, 05/01/09
Insured: MBIA.................... 2,244,325
1,000,000 Dade County, School Board COP,
Series B
Pre-refunded 08/01/06
5.70%, 08/01/16
Insured: AMBAC................... 1,065,000
1,000,000 Dade County, School Board COP,
Series B
Pre-refunded 08/01/06
5.60%, 08/01/26
Insured: AMBAC................... 1,060,000
1,000,000 Dade County, School District, GO
6.00%, 07/15/06
Insured: MBIA.................... 1,068,750
1,000,000 Dade County, Water & Sewer System
6.25%, 10/01/06
Insured: FGIC.................... 1,083,750
1,850,000 Dade County, GO, Series I
6.90%, 07/01/04
Insured: AMBAC................... 1,995,688
185,000 Escambia County,
Housing & Finance
Authority, Single Family Mortgage
Revenue, Series A, AMT
7.30%, 10/01/17
Insured: FHA..................... 188,700
1,250,000 Florida State Board of Education
Capital Outlay, GO,
Public Education, Series B
5.75%, 06/01/11
Insured: MBIA.................... 1,304,688
1,000,000 Florida State Board of Education
Capital Outlay, GO,
Series A
5.75%, 01/01/13.................. 1,026,250
1,000,000 Florida State Board of Education
Capital Outlay, GO,
Public Education, Series A
5.75%, 06/01/13.................. 1,060,000
2,000,000 Florida State Bond Finance
Department Revenue,
Environmental Protection,
Series 2000-B
5.50%, 07/01/08
Insured: FSA..................... 2,105,000
PAR VALUE VALUE
---------- -------------
FLORIDA (CONTINUED)
$2,000,000 Florida State Bond Finance
Department Revenue,
Environmental Protection,
Series 2000-A
5.70%, 07/01/09
Insured: AMBAC................... $ 2,090,000
1,000,000 Florida State Bond Finance
Department Revenue,
Environmental Protection,
Series 2000-A
5.50%, 07/01/12
Insured: MBIA.................... 1,030,000
1,500,000 Florida State
Educational Lottery Revenue,
Series C
5.00%, 07/01/13
Insured: FGIC.................... 1,490,625
1,000,000 Florida State
Educational Lottery Revenue,
Series A
5.00%, 07/01/15
Insured: FGIC.................... 975,000
1,815,000 Florida State Housing & Finance
Authority, Homeowner
Mortgages, Series 1
5.05%, 07/01/12
Insured: MBIA.................... 1,812,731
1,980,000 Florida State Housing & Finance
Authority, Plantation Colony
Apartments, Series B
5.70%, 10/01/24
Insured: FNMA.................... 2,059,200
2,200,000 Florida State
Jacksonville Transportation
Senior Lien, GO
6.00%, 07/01/08.................. 2,381,500
1,000,000 Florida State
Jacksonville Transportation
Senior Lien, GO
Pre-refunded 07/01/02
6.40%, 07/01/22.................. 1,041,250
2,000,000 Florida State Turnpike Authority
Revenue, Series A
5.25%, 07/01/11
Insured: FGIC.................... 2,032,500
2,000,000 Gainesville,
Utilities System Authority
Revenue, Series B
5.50%, 10/01/13.................. 2,035,000
2,000,000 Gulf Breeze, Series C
5.00%, 12/01/14
Insured: FGIC.................... 1,970,000
1,300,000 Hillsborough County, IDA,
Allegheny Health Systems
Pre-refunded 12/01/03
6.38%, 12/01/12
Insured: MBIA.................... 1,371,500
2,000,000 Hillsborough County,
School Board COP,
Pre-refunded 07/01/04
5.90%, 07/01/09
Insured: MBIA.................... 2,130,000
2,000,000 Hillsborough County,
School Board COP,
Master Lease Program
Pre-refunded 07/01/05
5.63%, 07/01/15
Insured: AMBAC................... 2,125,000
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE>
FLORIDA MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
FLORIDA (CONTINUED)
$1,000,000 Indian Trace Community,
Water Management, Series A-1
5.50%, 05/01/07
Insured: MBIA.................... $ 1,048,750
1,080,000 Jacksonville Electric Authority
Water & Sewer Revenue, Series B
5.50%, 10/01/05
Insured: FGIC.................... 1,125,900
1,000,000 Lee County, Series A
5.75%, 10/01/11
Insured: MBIA.................... 1,075,000
2,000,000 Lee County,
Water & Sewer Revenue,
Series A
5.00%, 10/01/14
Insured: AMBAC................... 1,970,000
1,000,000 Miami-Dade County,
Aviation Authority
Revenue, Series A, AMT
5.25%, 10/01/07
Insured: FGIC.................... 1,031,250
1,000,000 Orlando, Water &
Electric Utilities
Commission Revenue, Series A
5.25%, 10/01/14.................. 1,005,000
1,500,000 Palm Beach County,
Criminal Justice
Facilities Revenue
5.38%, 06/01/09
Insured: FGIC.................... 1,567,500
1,990,000 Pinellas County, Sewer Revenue
5.00%, 10/01/13
Insured: FGIC.................... 1,977,563
2,500,000 Reedy Creek, Improvements, GO,
Series A
5.75%, 06/01/14
Insured: MBIA.................... 2,571,875
1,000,000 Tampa, Health Systems Revenue,
Catholic Health, Series A-2
4.88%, 11/15/14
Insured: AMBAC................... 958,750
-------------
55,503,811
-------------
NEW YORK - 3.24%
2,000,000 Long Island Power Authority
Electric Systems Revenue,
Series 6
4.55%, 05/01/33 (A)
LOC: ABN AMRO Bank, N.V.
Morgan Guaranty Trust............ 2,000,000
-------------
PUERTO RICO - 1.74%
1,000,000 Puerto Rico Municipal
Finance Agency, GO, Series A
5.50%, 08/01/09
Insured: FSA..................... 1,073,749
-------------
TOTAL MUNICIPAL BONDS ........... 58,577,560
-------------
(Cost $58,089,174)
SHARES VALUE
---------- -------------
INVESTMENT COMPANIES - 4.19%
417,515 Dreyfus Tax-Exempt Cash
Management Fund.................. $ 417,515
2,169,493 Federated Tax-Free
Obligations Fund................. 2,169,493
-------------
TOTAL INVESTMENT COMPANIES ...... 2,587,008
-------------
(Cost $2,587,008)
TOTAL INVESTMENTS - 99.01%....................... 61,164,568
-------------
(Cost $60,676,181)
NET OTHER ASSETS AND LIABILITIES - 0.99%......... 608,476
-------------
NET ASSETS - 100.00%............................. $ 61,773,044
=============
---------------------------
(A) Variable rate bond. Rate shown reflects the rate in effect at
October 31, 2000.
AMBAC American Municipal Bond Assurance Corp.
COP Certificates of Participation
FHA Federal Housing Authority
FGIC Federal Guaranty Insurance Corp.
FNMA Federal National Mortgage Association
FSA Financial Security Assurance Co.
GO General Obligation
IDA Industrial Development Authority
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
SP OB Special Obligation
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE>
MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MUNICIPAL BONDS - 97.74%
MASSACHUSETTS - 92.62%
$2,000,000 Boston, GO
5.25%, 10/01/04
Insured: MBIA.................... $ 2,057,500
1,500,000 Boston, GO, Series A
5.65%, 02/01/09
Insured: AMBAC................... 1,558,125
3,320,000 Boston Water & Sewer Commission
General Purpose, Senior Series A
5.13%, 11/01/15
Insured: FGIC.................... 3,282,650
1,500,000 Brockton, GO
5.13%, 04/01/15
Insured: MBIA.................... 1,490,625
1,905,000 Brookline, GO
5.75%, 04/01/14.................. 2,024,062
650,000 Chelsea School Project,
Loan Act 1948, GO
6.00%, 06/15/04
Insured: AMBAC................... 683,312
1,000,000 Chelsea School Project,
Loan Act 1948, GO
5.70%, 06/15/06
Insured: AMBAC................... 1,055,000
1,105,000 Gloucester, GO
5.10%, 08/01/14
Insured: FGIC.................... 1,102,237
1,500,000 Haverhill, GO
5.30%, 06/15/12
Insured: FGIC.................... 1,541,250
1,000,000 Holyoke, GO, Series A
5.60%, 06/15/11
Insured: FSA..................... 1,046,250
1,475,000 Lawrence, GO
6.25%, 02/15/09
Insured: AMBAC................... 1,570,875
2,740,000 Lowell, GO
5.50%, 08/01/11
Insured: AMBAC................... 2,846,175
1,720,000 Lowell, GO
5.50%, 08/01/12
Insured: AMBAC................... 1,778,050
1,000,000 Lowell, GO,
Pre-refunded 04/01/05
6.63%, 04/01/15
Insured: FSA..................... 1,080,000
1,140,000 Lowell, GO, Series A
5.50%, 01/15/10
Insured: FSA..................... 1,178,475
1,375,000 Lynn Water & Sewer Commission,
Series A
5.00%, 12/01/14
Insured: FSA..................... 1,350,937
1,000,000 Malden, GO
5.00%, 10/01/14
Insured: AMBAC................... 987,500
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$1,885,000 Massachusetts Bay Transportation
Authority,
General Transportation System
Series A
5.60%, 03/01/08.................. $ 1,993,387
3,000,000 Massachusetts Bay Transportation
Authority,
General Transportation System
Series A
5.00%, 03/01/18
Insured: MBIA.................... 2,812,500
3,675,000 Massachusetts Bay Transportation
Authority,
General Transportation System
Series A
Pre-refunded 03/01/05
5.75%, 03/01/25.................. 3,909,281
1,000,000 Massachusetts Bay Transportation
Authority,
General Transportation System,
Series A
Pre-refunded 03/01/06
5.63%, 03/01/26.................. 1,057,500
2,640,000 Massachusetts Bay Transportation
Authority,
General Transportation System,
Series B
Pre-refunded 03/01/04
5.80%, 03/01/10.................. 2,791,800
3,870,000 Massachusetts Bay Transportation
Authority, Series B
6.00%, 03/01/12.................. 4,034,475
795,000 Massachusetts Bay Transportation
Authority, Series A,
Pre-refunded 03/01/05
5.50%, 03/01/07.................. 838,725
2,615,000 Massachusetts Bay Transportation
Authority, Series A,
Pre-refunded 03/01/05
5.75%, 03/01/18
Insured: MBIA-IBC................ 2,781,706
1,000,000 Massachusetts Bay Transportation
Authority, Revenue Assessment,
Series A
5.75%, 07/01/14.................. 1,051,250
705,000 Massachusetts Bay Transportation
Authority, Unrefunded, Series A
5.50%, 03/01/07.................. 739,369
1,000,000 Massachusetts
Educational Financing
Authority, Issue G, Series A
5.13%, 12/01/14
Insured: MBIA.................... 967,500
320,000 Massachusetts Educational Loan
Authority, Issue E, Series B
6.00%, 01/01/12
Insured: AMBAC................... 329,600
695,000 Massachusetts Educational Loan
Authority, Issue E, Series B
6.30%, 07/01/12
Insured: AMBAC................... 721,931
1,000,000 Massachusetts
Municipal Wholesale
Electric Co. Power Supply System,
Series D
6.00%, 07/01/05
Insured: MBIA.................... 1,042,500
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE>
MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$2,000,000 Massachusetts State, GO, Series A
5.75%, 08/01/09
Insured: AMBAC................... $ 2,145,000
3,500,000 Massachusetts State, GO, Series A
5.50%, 02/01/11.................. 3,583,125
5,000,000 Massachusetts State, GO, Series A
5.00%, 11/01/13.................. 4,968,750
2,000,000 Massachusetts State, GO, Series B
5.40%, 11/01/07
Insured: MBIA.................... 2,095,000
1,000,000 Massachusetts State, GO, Series B
5.50%, 11/01/07.................. 1,052,500
5,315,000 Massachusetts State, GO, Series B
6.50%, 08/01/08.................. 5,912,938
1,000,000 Massachusetts State, GO
Consolidated Loan, Series B
5.25%, 05/01/12.................. 1,022,500
3,000,000 Massachusetts State, GO
Consolidated Loan, Series B
5.00%, 04/01/14
Insured: MBIA.................... 2,962,500
1,000,000 Massachusetts State, GO
Consolidated Loan, Series B
5.25%, 05/01/14.................. 1,008,750
3,000,000 Massachusetts State, GO
Consolidated Loan, Series B
Pre-refunded 06/01/06
5.75%, 06/01/16.................. 3,191,250
5,000,000 Massachusetts State, GO
Consolidated Loan, Series C
5.25%, 08/01/14.................. 5,043,750
1,750,000 Massachusetts State, GO
Consolidated Loan, Series C
5.25%, 08/01/15.................. 1,752,188
3,500,000 Massachusetts State, GO
Consolidated Loan, Series D
5.00%, 11/01/11.................. 3,526,250
2,000,000 Massachusetts State, GO
Consolidated Loan, Series D
5.00%, 11/01/14.................. 1,972,500
1,445,000 Massachusetts State Development
Finance Agency, Clark University
5.25%, 07/01/16.................. 1,363,719
1,640,000 Massachusetts State Development
Finance Agency, Curry College,
Series A
5.00%, 03/01/13
Insured: ACA..................... 1,558,000
1,030,000 Massachusetts State Development
Finance Agency, Visual and
Performing Arts Project
5.75%, 08/01/13.................. 1,093,087
2,700,000 Massachusetts State
Federal Highway
Grant Anticipation Notes,
Series A
5.25%, 06/15/08.................. 2,794,500
1,000,000 Massachusetts State
Federal Highway
Grant Anticipation Notes,
Series A
5.25%, 12/15/11.................. 1,026,250
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$2,000,000 Massachusetts State Government
Land Bank, Series B
5.25%, 02/01/06.................. $ 2,062,500
2,000,000 Massachusetts State HEFA
Baystate Medical Center,
Series D
6.00%, 07/01/15
Insured: FGIC.................... 2,062,500
975,000 Massachusetts State HEFA
Berkley College of Music,
Series E
5.00%, 10/01/15
Insured: MBIA.................... 945,750
2,500,000 Massachusetts State HEFA
Boston Medical Center, Series A
5.25%, 07/01/15
Insured: MBIA.................... 2,478,125
1,900,000 Massachusetts State HEFA
Brandeis University, Series I
5.25%, 10/01/12
Insured: MBIA.................... 1,935,625
1,500,000 Massachusetts State HEFA
Brandeis University, Series I
5.25%, 10/01/14
Insured: MBIA.................... 1,509,375
2,000,000 Massachusetts State HEFA
Catholic Health East,
Series B
5.00%, 11/15/18
Insured: AMBAC................... 1,870,000
1,175,000 Massachusetts State HEFA
Dana-Farber Cancer Project,
Series G-1
6.25%, 12/01/09.................. 1,219,062
1,000,000 Massachusetts State HEFA
Hallmark Health System, Series A
5.00%, 07/01/12
Insured: FSA..................... 990,000
1,000,000 Massachusetts State HEFA
Harvard University, Series M
5.75%, 12/01/11.................. 1,020,570
1,500,000 Massachusetts State HEFA
Massachusetts Eye & Ear Infirmary,
Series B
5.25%, 07/01/09
Insured: ACA..................... 1,503,750
2,000,000 Massachusetts State HEFA
Massachusetts General Hospital,
Series G
5.38%, 07/01/11
Insured: AMBAC................... 2,030,000
2,500,000 Massachusetts State HEFA
New England Deaconess Hospital,
Series D
Pre-refunded 04/01/02
6.88%, 04/01/22.................. 2,631,250
2,500,000 Massachusetts State HEFA
Partners Healthcare System,
Series A
5.25%, 07/01/15
Insured: MBIA.................... 2,443,750
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE>
MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$2,465,000 Massachusetts State HEFA
Partners Healthcare System,
Series A
5.38%, 07/01/17
Insured: MBIA.................... $ 2,400,294
4,670,000 Massachusetts State HEFA
Partners Healthcare System,
Series B
5.25%, 07/01/10.................. 4,623,300
1,000,000 Massachusetts State HEFA
Simmons College, Series C
5.00%, 10/01/14
Insured: MBIA.................... 983,750
2,000,000 Massachusetts State HEFA
Smith College, Series D
5.75%, 07/01/16.................. 2,045,000
2,000,000 Massachusetts State HEFA
University of Massachusetts,
Series A
5.25%, 07/01/14
Insured: AMBAC................... 1,995,000
1,245,000 Massachusetts State HFA,
Series A
5.85%, 12/01/08
Insured: MBIA.................... 1,304,138
4,950,000 Massachusetts State HFA
Housing Project, Series A
6.30%, 10/01/13
Insured: AMBAC-TCRS.............. 5,154,187
1,590,000 Massachusetts State HFA
Multi-Family Housing, Series A
6.10%, 07/01/15
Insured: MBIA.................... 1,653,600
2,805,000 Massachusetts State HFA
Rental Housing Mortgage,
Series C, AMT
5.45%, 07/01/18
Insured: AMBAC................... 2,738,381
1,750,000 Massachusetts State HFA
Residential Development,
Series A
6.88%, 11/15/11
Insured: FNMA.................... 1,835,312
1,500,000 Massachusetts State IFA
Ogden Haverhill Project,
Series A
5.20%, 12/01/08.................. 1,440,000
900,000 Massachusetts State IFA
Refusetech, Inc. Project,
Series A
6.15%, 07/01/02.................. 912,375
1,000,000 Massachusetts State IFA
Refusetech, Inc. Project,
Series A
6.30%, 07/01/05.................. 1,031,250
1,550,000 Massachusetts State IFA
Worcester Polytechnic Institute
5.13%, 09/01/17
Insured: MBIA.................... 1,499,625
1,390,000 Massachusetts State
Port Authority,
Series A
6.00%, 07/01/04.................. 1,457,763
1,050,000 Massachusetts State
Port Authority,
Series A
6.00%, 07/01/13.................. 1,081,500
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$1,790,000 Massachusetts State
Port Authority,
Series B, AMT
5.00%, 07/01/13.................. $ 1,745,250
1,385,000 Massachusetts State
Port Authority,
Series B, AMT
5.25%, 07/01/14.................. 1,374,613
1,000,000 Massachusetts State
Port Authority, AMT,
Series E
5.25%, 07/01/13.................. 1,000,000
2,000,000 Massachusetts State, SP OB
Series A
5.50%, 06/01/07.................. 2,072,500
2,780,000 Massachusetts State, SP OB
Series A,
Pre-refunded 06/01/04
5.75%, 06/01/11.................. 2,915,525
700,000 Massachusetts State,
SP OB Revenue,
Series A,
Pre-refunded 06/01/04
5.75%, 06/01/12.................. 734,125
935,000 Massachusetts State WPAT,
Series A
5.45%, 02/01/13.................. 978,244
2,000,000 Massachusetts State WPAT,
MWRA Project, Series A
5.25%, 08/01/05.................. 2,065,000
1,280,000 Massachusetts State WPAT
New Bedford Project, Series A
Pre-refunded 02/01/06
5.70%, 02/01/12.................. 1,356,800
2,835,000 Massachusetts State WPAT
New Bedford Project, Series A
Pre-refunded 02/01/06
5.70%, 02/01/15.................. 3,005,100
2,090,000 Massachusetts State WPAT
Pooled Loan Program, Series 1
5.60%, 08/01/13.................. 2,134,413
730,000 Massachusetts State WPAT
Pooled Loan Program, Series 2
6.13%, 02/01/07.................. 788,400
1,000,000 Massachusetts State WPAT
Loan Program, Series A
5.25%, 08/01/14.................. 1,003,750
3,000,000 Massachusetts State WRA, Series A
Pre-refunded 11/01/06
5.60%, 11/01/26
Insured: FGIC.................... 3,183,750
1,000,000 Massachusetts State WRA Series B
5.88%, 11/01/04.................. 1,042,500
2,000,000 Massachusetts State WRA Series B
6.00%, 11/01/05.................. 2,090,000
2,000,000 Massachusetts State WRA Series C
6.00%, 12/01/11.................. 2,180,000
2,750,000 Massachusetts State WRA Series C,
Pre-refunded 12/01/04
5.25%, 12/01/20
Insured: MBIA-IBC................ 2,873,750
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE>
MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$1,000,000 Massachusetts State WRA, Series D
5.50%, 08/01/10.................. $ 1,052,500
1,405,000 Mendon-Upton Regional School
District, GO
5.50%, 06/01/15
Insured: FGIC.................... 1,434,856
1,425,000 Nantucket Island, GO
6.80%, 12/01/11.................. 1,488,983
2,250,000 Nantucket Island, GO
5.25%, 07/15/10
Insured: MBIA.................... 2,328,750
1,500,000 Palmer, GO
5.50%, 10/01/10
Insured: MBIA.................... 1,548,750
510,000 Peabody, GO, Series A
5.00%, 08/01/14.................. 499,800
1,035,000 Randolph, GO
6.00%, 04/01/04
Insured: FGIC.................... 1,085,456
1,000,000 Route 3 North Transportation
Improvement Assocation
5.75%, 06/15/13
Insured: MBIA.................... 1,055,000
2,000,000 Route 3 North Transportation
Improvement Assocation
5.75%, 06/15/14
Insured: MBIA.................... 2,095,000
1,050,000 Sandwich, GO
5.76%, 08/15/11.................. 1,135,313
1,000,000 Springfield, GO
Municipal Purpose Loan
5.30%, 08/01/11
Insured: AMBAC................... 1,031,250
1,000,000 Springfield, GO
Municipal Purpose Loan
5.30%, 08/01/13
Insured: AMBAC................... 1,018,750
1,255,000 Sutton, GO
5.25%, 04/01/06
Insured: MBIA.................... 1,297,356
3,000,000 University of Lowell
Building Authority
Fifth Series A
5.63%, 11/01/14
Insured: AMBAC................... 3,078,750
1,225,000 West Springfield, GO
5.00%, 03/01/18
Insured: FGIC.................... 1,166,813
1,705,000 Westford, GO
5.50%, 04/01/07
Insured: FGIC.................... 1,790,250
PAR VALUE VALUE
---------- -------------
MASSACHUSETTS (CONTINUED)
$1,000,000 Worcester, GO, Series G
5.30%, 07/01/15
Insured: MBIA.................... $ 1,006,250
1,875,000 Worcester, GO
Municipal Purpose Loan,
Series B
5.25%, 11/01/14
Insured: MBIA.................... 1,893,750
-------------
215,186,133
-------------
NEW YORK - 2.58%
5,000,000 Long Island
Power Authority Electrical
Systems Revenue, Series 6
4.55%, 05/01/33 (A)
LOC: ABN AMRO Bank NV............ 5,000,000
1,000,000 New York State Energy Research &
Development Authority, PCR,
New York State
Electric & Gas Corp.,
Series D
4.55%, 10/01/29 (A)
LOC: First National
Bank of Chicago ................. 1,000,000
-------------
6,000,000
-------------
PUERTO RICO - 2.54%
2,675,000 Puerto Rico
Commonwealth Highway &
Transportation Authority
5.25%, 07/01/13
Insured: MBIA.................... 2,755,250
2,000,000 Puerto Rico Industrial Tourist
Educational Medical &
Environmental
Control Facilities,
Inter American
University, Series A
5.25%, 10/01/12
Insured: MBIA.................... 2,077,500
1,000,000 Puerto Rico Municipal Finance
Agency, GO, Series A
5.50%, 08/01/09
Insured: FSA..................... 1,073,750
-------------
5,906,500
-------------
TOTAL MUNICIPAL BONDS ........... 227,092,633
-------------
(Cost $225,108,212)
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE>
MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
SHARES VALUE
---------- -------------
INVESTMENT COMPANIES - 0.93%
370,482 Dreyfus Tax-Exempt Cash
Management Fund.................. $ 370,482
1,794,264 Federated Tax-Free
Obligations Fund................. 1,794,264
-------------
TOTAL INVESTMENT COMPANIES ...... 2,164,746
-------------
(Cost $2,164,746)
TOTAL INVESTMENTS - 98.67%....................... 229,257,379
-------------
(Cost $227,272,958)
NET OTHER ASSETS AND LIABILITIES - 1.33%......... 3,095,973
-------------
NET ASSETS - 100.00%............................. $ 232,353,352
=============
----------------------------
(A) Variable rate bond. Rate shown reflects the rate in effect at October
31, 2000.
ACA American Capital Access
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax. Private Activity obligations the interest on
which is subject to the federal AMT for individuals.
FGIC Federal Guaranty Insurance Corp.
FNMA Federal National Mortgage Association
FSA Financial Security Assurance Company
GO General Obligation
HEFA Health and Educational Facilities Authority
HFA Housing Finance Agency
IFA Industrial Finance Agency
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
MBIA-IBC MBIA Insured Bond Certificates
MWRA Massachusetts Water Resources Authority
PCR Pollution Control Revenue
SP OB Special Obligation
TCRS Transferable Custodial Receipts
WPAT Water Pollution Abatement Test
WRA Water Resource Authority
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS NEW JERSEY NEW YORK
TAX-EXEMPT MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
------------ ----------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost ......................... $198,093,618 $47,314,087 $ 76,669,189 $11,032,863 $86,788,793
Net unrealized appreciation ................. 2,359,463 799,653 538,090 70,728 1,359,693
------------ ----------- ------------- ----------- -----------
Total investments at value .................. 200,453,081 48,113,740 77,207,279 11,103,591 88,148,486
Receivable for investments sold ............... 4,174,181 -- -- -- --
Receivable for shares sold .................... 298,782 461 78,582 143,000 39,330
Interest and dividend receivables ............. 2,959,745 656,586 1,147,900 169,747 1,335,229
Deferred organizational expense (Note 2) ...... -- -- -- 8,221 --
------------ ----------- ------------- ----------- -----------
Total Assets ................................ 207,885,789 48,770,787 78,433,761 11,424,559 89,523,045
------------ ----------- ------------- ----------- -----------
LIABILITIES:
Dividends payable ............................. 428,708 109,442 204,071 35,457 217,214
Payable for investments purchased ............. 8,169,467 -- -- -- --
Payable for shares repurchased ................ 64,000 10,720 6,087 -- 6,850
Advisory fee payable (Note 3) ................. 92,449 14,345 23,169 2,369 41,502
Payable to Fleet affiliates (Note 3) .......... 5,001 3,212 3,700 143 4,299
Payable to Administrator (Note 3) ............. 18,463 8,783 13,448 1,299 12,951
Trustees' fees and expenses payable (Note 3) .. 7,160 1,776 2,570 246 3,379
Accrued expenses and other payables ........... 29,873 22,752 22,241 13,462 25,534
------------ ----------- ------------- ----------- -----------
Total Liabilities ........................... 8,815,121 171,030 275,286 52,976 311,729
------------ ----------- ------------- ----------- -----------
NET ASSETS ....................................... $199,070,668 $48,599,757 $ 78,158,475 $11,371,583 $89,211,316
============ =========== ============= =========== ===========
NET ASSETS CONSIST OF:
Par value (Note 5) ............................ $ 18,634 $ 4,676 $ 7,736 $ 1,151 $ 8,120
Paid-in capital in excess of par value ........ 197,468,235 48,923,818 79,076,609 11,485,013 88,591,996
Undistributed (overdistributed)
net investment income .................... (14,883) (14,614) (21,727) 8,714 3
Accumulated net realized (loss)
on investments sold ...................... (760,781) (1,113,776) (1,442,233) (194,023) (748,496)
Unrealized appreciation (depreciation)
of investments ........................... 2,359,463 799,653 538,090 70,728 1,359,693
------------ ----------- ------------- ----------- -----------
TOTAL NET ASSETS ................................. $199,070,668 $48,599,757 $ 78,158,475 $11,371,583 $89,211,316
============ =========== ============= =========== ===========
Retail A Shares:
Net Assets .................................... $ 21,229,474 $25,345,902 $ 33,830,092 $ 1,197,821 $38,700,032
Shares of beneficial interest outstanding ..... 1,987,189 2,438,776 3,348,618 121,192 3,522,605
NET ASSET VALUE and redemption
price per share .......................... $ 10.68 $ 10.39 $ 10.10 $ 9.88 $ 10.99
Sales charge - 3.75% of offering price ........ 0.42 0.40 0.39 0.38 0.43
------------ ----------- ------------- ----------- -----------
Maximum offering price per share .............. $ 11.10 $ 10.79 $ 10.49 $ 10.26 $ 11.42
============ =========== ============= =========== ===========
Retail B Shares:
Net Assets .................................... $ 3,426,016 N/A N/A N/A N/A
Shares of beneficial interest outstanding ..... 320,697 N/A N/A N/A N/A
------------ ----------- ------------- ----------- -----------
NET ASSET VALUE and offering price per share* . $ 10.68 N/A N/A N/A N/A
============ =========== ============= =========== ===========
Trust Shares:
Net Assets .................................... $174,415,178 $23,253,855 $ 44,328,383 $10,173,762 $50,511,284
Shares of beneficial interest outstanding ..... 16,326,324 2,237,601 4,387,610 1,029,341 4,597,687
------------ ----------- ------------- ----------- -----------
Net Asset Value, offering and
redemption price per share ............... $ 10.68 $ 10.39 $ 10.10 $ 9.88 $ 10.99
============ =========== ============= =========== ===========
BKB Shares:
Net Assets .................................... N/A N/A N/A N/A N/A
Shares of beneficial interest outstanding ..... N/A N/A N/A N/A N/A
------------ ----------- ------------- ----------- -----------
NET ASSET VALUE, offering and
redemption price per share ............... N/A N/A N/A N/A N/A
============ =========== ============= =========== ===========
</TABLE>
-----------------------------------------------------------------------
* Redemption price per share is equal to the Net Asset Value per share less any
applicable contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
56-57
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS
RHODE ISLAND INTERMEDIATE INTERMEDIATE FLORIDA INTERMEDIATE
MUNICIPAL TAX-EXEMPT MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost ......................... $116,650,290 $276,941,386 $148,452,154 $ 60,676,181 $ 227,272,958
Net unrealized appreciation ................. 1,214,715 5,389,683 1,996,872 488,387 1,984,421
------------ ------------ ------------ ------------ -------------
Total investments at value .................. 117,865,005 282,331,069 150,449,026 61,164,568 229,257,379
Receivable for investments sold ............... -- 100,452 -- -- --
Receivable for shares sold .................... 267 5,672 121 -- 490,669
Interest and dividend receivables ............. 1,650,523 4,258,993 2,541,038 904,275 3,556,974
Deferred organizational expense (Note 2) ...... -- -- -- -- --
------------ ------------ ------------ ------------ -------------
Total Assets ................................ 119,515,795 286,696,186 152,990,185 62,068,843 233,305,022
------------ ------------ ------------ ------------ -------------
LIABILITIES:
Dividends payable ............................. 391,690 963,799 464,240 214,424 685,663
Payable for investments purchased ............. -- 6,098,736 -- -- --
Payable for shares repurchased ................ 1,335 796,048 210,067 44,408 112,229
Advisory fee payable (Note 3) ................. 44,862 124,563 60,151 18,944 95,801
Payable to Fleet affiliates (Note 3) .......... -- -- 2 -- 94
Payable to Administrator (Note 3) ............. 12,110 21,690 12,427 7,355 18,739
Trustees' fees and expenses payable (Note 3) .. 1,086 1,204 683 256 1,057
Accrued expenses and other payables ........... 26,485 29,591 15,325 10,412 38,087
------------ ------------ ------------ ------------ -------------
Total Liabilities ........................... 477,568 8,035,631 762,895 295,799 951,670
------------ ------------ ------------ ------------ -------------
NET ASSETS ....................................... $119,038,227 $278,660,555 $152,227,290 $ 61,773,044 $ 232,353,352
============ ============ ============ ============ =============
NET ASSETS CONSIST OF:
Par value (Note 5) ............................ $ 11,071 $ 27,847 $ 14,623 $ 6,259 22,832
Paid-in capital in excess of par value ........ 119,427,537 280,994,008 152,786,044 62,568,214 232,776,837
Undistributed (overdistributed)
net investment income .................... (10,999) (302) (1,047) 227 (2)
Accumulated net realized (loss)
on investments sold ...................... (1,604,097) (7,750,681) (2,569,202) (1,290,043) (2,430,736)
Unrealized appreciation (depreciation)
of investments ........................... 1,214,715 5,389,683 1,996,872 488,387 1,984,421
------------ ------------ ------------ ------------ -------------
TOTAL NET ASSETS ................................. $119,038,22 $278,660,555 $ 152,227,290 $ 61,773,044 $232,353,352
============ ============ ============ ============ =============
Retail A Shares:
Net Assets .................................... $ 26,022,618 $ 1,391 $ 65,955 N/A $ 1,345,310
Shares of beneficial interest outstanding ..... 2,420,291 139 6,336 N/A 132,181
NET ASSET VALUE and redemption
price per share .......................... $ 10.75 $ 10.01 $ 10.41 N/A $ 10.18
Sales charge - 3.75% of offering price ........ 0.42 0.39 0.41 N/A 0.40
------------ ------------ ------------ ------------ -------------
Maximum offering price per share .............. $ 11.17 $ 10.40 $ 10.82 N/A $ 10.58
============ ============ ============ ============ =============
Retail B Shares:
Net Assets .................................... N/A N/A N/A N/A N/A
Shares of beneficial interest outstanding ..... N/A N/A N/A N/A N/A
------------ ------------ ------------ ------------ -------------
NET ASSET VALUE and offering price per share* . N/A N/A N/A N/A N/A
============ ============ ============ ============ =============
Trust Shares:
Net Assets .................................... $ 82,616,767 $261,937,740 $121,974,120 $ 61,773,044 $ 176,305,662
Shares of beneficial interest outstanding ..... 7,683,957 26,175,371 11,717,163 6,259,141 17,324,119
------------ ------------ ------------ ------------ -------------
Net Asset Value, offering and
redemption price per share ............... $ 10.75 $ 10.01 $ 10.41 $ 9.87 $ 10.18
============ ============ ============ ============ =============
BKB Shares:
Net Assets .................................... $ 10,398,842 $ 16,721,424 $ 30,187,215 N/A $ 54,702,380
Shares of beneficial interest outstanding ..... 967,180 1,671,041 2,899,853 N/A 5,375,388
------------ ------------ ------------ ------------ -------------
NET ASSET VALUE, offering and
redemption price per share ............... $ 10.75 $ 10.01 $ 10.41 N/A $ 10.18
============ ============ ============ ============ =============
</TABLE>
-----------------------------------------------------------------------
* Redemption price per share is equal to the Net Asset Value per share less any
applicable contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
56-57
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, 2000
-------------------------------------------------------------
CONNECTICUT MASSACHUSETTS NEW JERSEY
TAX-EXEMPT MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND
------------ ----------- ------------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (Note 2) .............................. $ 9,859,302 $ 2,258,537 $ 3,913,011 $ 483,294
Dividends (Note 2) ............................. 228,892 49,940 62,627 14,594
------------ ----------- ------------- -----------
Total investment income ...................... 10,088,194 2,308,477 3,975,638 497,888
------------ ----------- ------------- -----------
EXPENSES:
Investment advisory fee (Note 3) ............... 1,407,199 336,717 562,252 74,395
Administration fee (Note 3) .................... 133,340 31,943 53,297 7,042
Custodian fee .................................. 16,146 7,787 10,027 7,959
Fund accounting fee (Note 3) ................... 63,646 45,684 62,979 42,268
Professional fees (Note 3) ..................... 23,607 21,965 25,178 18,166
Transfer agent fee (Note 3) .................... 13,061 11,360 9,114 4,931
Shareholder servicing and 12b-1 fees (Note 3) .. 57,521 36,001 46,003 1,054
Trustees' fees and expenses (Note 3) ........... 6,059 2,228 2,355 1,714
Amortization of organization costs (Note 2) .... -- -- -- 3,407
Reports to shareholders ........................ 12,371 9,997 10,111 3,456
Miscellaneous .................................. 44,095 18,365 21,246 2,382
------------ ----------- ------------- -----------
Total expenses before reimbursement/waiver ... 1,777,045 522,047 802,562 166,774
------------ ----------- ------------- -----------
Less: reimbursement/waiver (Note 4) .......... (377,253) (181,582) (301,867) (80,334)
------------ ----------- ------------- -----------
Total expenses net of reimbursement/waiver ... 1,399,792 340,465 500,695 86,440
------------ ----------- ------------- -----------
NET INVESTMENT INCOME ............................. 8,688,402 1,968,012 3,474,943 411,448
------------ ----------- ------------- -----------
NET REALIZED AND UNREALIZED LOSS
ON INVESTMENTS (NOTES 2 & 6):
Net realized loss on investments sold .......... (670,993) (291,686) (1,004,595) (148,987)
Net change in unrealized
appreciation of investments ............... 7,272,858 1,610,242 3,652,816 477,226
------------ ----------- ------------- -----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS ................................. 6,601,865 1,318,556 2,648,221 328,239
------------ ----------- ------------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $ 15,290,267 $ 3,286,568 $ 6,123,164 $ 739,687
============ =========== ============= ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
58-59
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, 2000 PERIOD FROM JUNE 1, 2000 TO OCTOBER 31, 2000
------------------------- ---------------------------------------------------
CONNECTICUT MASSACHUSETTS
NEW YORK RHODE ISLAND INTERMEDIATE INTERMEDIATE FLORIDA INTERMEDIATE
MUNICIPAL MUNICIPAL TAX-EXEMPT MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
----------- ------------ ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (Note 2) .............................. $ 4,667,695 $ 2,978,759 $ 6,075,459 $ 3,159,265 $ 1,262,498 $ 4,907,834
Dividends (Note 2) ............................. 9,257 88,654 167,817 109,158 32,147 94,452
----------- ------------ ----------- ------------ ------------ -------------
Total investment income ...................... 4,676,952 3,067,413 6,243,276 3,268,423 1,294,645 5,002,286
----------- ------------ ----------- ------------ ------------ -------------
EXPENSES:
Investment advisory fee (Note 3) ............... 647,005 432,940 907,202 474,336 193,306 730,266
Administration fee (Note 3) .................... 61,338 39,723 81,016 42,361 17,263 65,217
Custodian fee .................................. 10,409 9,400 5,664 4,552 3,604 5,664
Fund accounting fee (Note 3) ................... 60,198 45,690 26,126 19,296 14,747 26,018
Professional fees (Note 3) ..................... 26,373 48,066 22,381 17,859 16,678 22,059
Transfer agent fee (Note 3) .................... 21,342 6,673 2,149 2,326 1,761 5,908
Shareholder servicing and 12b-1 fees (Note 3) .. 58,189 -- 3,083 4,485 -- 12,625
Trustees' fees and expenses (Note 3) ........... 3,523 2,035 1,585 876 336 1,358
Amortization of organization costs (Note 2) .... -- -- -- -- -- --
Reports to shareholders ........................ 13,585 4,572 6,153 8,099 424 17,091
Miscellaneous .................................. 24,061 17,782 48,524 29,576 11,835 31,720
----------- ------------ ----------- ------------ ------------ -------------
Total expenses before reimbursement/waiver ... 926,023 606,881 1,103,883 603,766 259,954 917,926
----------- ------------ ----------- ------------ ------------ -------------
Less: reimbursement/waiver (Note 4) .......... (185,019) (189,644) (170,209) (104,119) (54,661) (157,092)
----------- ------------ ----------- ------------ ------------ -------------
Total expenses net of reimbursement/waiver ... 741,004 417,237 933,674 499,647 205,293 760,834
----------- ------------ ----------- ------------ ------------ -------------
NET INVESTMENT INCOME ............................. 3,935,948 2,650,176 5,309,602 2,768,776 1,089,352 4,241,452
----------- ------------ ----------- ------------ ------------ -------------
NET REALIZED AND UNREALIZED LOSS
ON INVESTMENTS (NOTES 2 & 6):
Net realized loss on investments sold .......... (462,422) (208,694) (1,438,177) (615,088) (630,739) (1,215,747)
Net change in unrealized
appreciation of investments ............... 3,869,503 3,049,944 13,867,739 6,649,166 2,960,565 10,490,315
----------- ------------ ----------- ------------ ------------ -------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS ................................. 3,407,081 2,841,250 12,429,562 6,034,078 2,329,826 9,274,568
----------- ------------ ----------- ------------ ------------ -------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $ 7,343,029 $ 5,491,426 $17,739,164 $ 8,802,854 $ 3,419,178 $ 13,516,020
=========== ============ =========== ============ ============ =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
58-59
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MAY 31, 2000
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS
INTERMEDIATE INTERMEDIATE FLORIDA INTERMEDIATE
TAX-EXEMPT MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND
------------ ------------ ----------- -------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C>
Interest (Note 2) .................................... $ 17,557,000 $ 9,099,000 $ 3,452,000 $ 13,405,000
------------ ------------ ----------- -------------
Total investment income ............................ 17,557,000 9,099,000 3,452,000 13,405,000
------------ ------------ ----------- -------------
EXPENSES:
Investment advisory fee (Note 3) ..................... 2,453,000 1,266,000 488,000 1,866,000
Administration fee (Note 3) .......................... 215,000 111,000 43,000 163,000
Custodian fee ........................................ 21,000 12,000 8,000 17,000
Professional fees (Note 3) ........................... 22,000 10,000 4,000 17,000
Transfer agent fee (Note 3) .......................... 92,000 74,000 36,000 86,000
Shareholder servicing and 12b-1 fees (Note 3) ........ 829,000 428,000 165,000 630,000
Trustees' fees and expenses (Note 3) ................. 8,000 4,000 2,000 6,000
Reports to shareholders .............................. 13,000 7,000 3,000 10,000
Miscellaneous ........................................ 33,000 9,000 8,000 26,000
------------ ------------ ----------- -------------
Total expenses before reimbursement/waiver ......... 3,686,000 1,921,000 757,000 2,821,000
------------ ------------ ----------- -------------
Less: reimbursement/waiver (Note 4) ................ (1,033,000) (552,000) (229,000) (804,000)
------------ ------------ ----------- -------------
Total expenses net of reimbursement/waiver ......... 2,653,000 1,369,000 528,000 2,017,000
------------ ------------ ----------- -------------
NET INVESTMENT INCOME ................................... 14,904,000 7,730,000 2,924,000 11,388,000
------------ ------------ ----------- -------------
NET REALIZED AND UNREALIZED LOSS
ON INVESTMENTS (NOTES 2 & 6):
Net realized loss on investments sold ................ (6,305,000) (1,938,000) (659,000) (1,141,000)
Net change in unrealized depreciation of investments . (15,145,000) (8,643,000) (3,569,000) (14,553,000)
------------ ------------ ----------- -------------
NET REALIZED AND UNREALIZED
LOSSON INVESTMENTS ................................... (21,450,000) (10,581,000) (4,228,000) (15,694,000)
------------ ------------ ----------- -------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............................ $ (6,546,000) $ (2,851,000) $(1,304,000) $ (4,306,000)
============ ============ =========== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE>
This page left blank intentionally.
61
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
TAX-EXEMPT CONNECTICUT MASSACHUSETTS
BOND FUND MUNICIPAL BOND FUND MUNICIPAL BOND FUND
---------------------------- -------------------------- --------------------------
YEARS ENDED OCTOBER 31, YEARS ENDED OCTOBER 31, YEARS ENDEDOCTOBER 31,
2000 1999 2000 1999 2000 1999
------------- ------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS at beginning of period........... $ 171,085,496 $ 163,142,500 $ 44,562,475 $ 38,768,085 $ 73,593,103 $ 67,559,730
------------- ------------- ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income.................... 8,688,402 7,462,137 1,968,012 1,768,485 3,474,943 3,090,310
Net realized gain (loss) on
investments sold ................... (670,993) (78,657) (291,686) (23,141) (1,004,595) (65,783)
Net change in unrealized appreciation
(depreciation) of investments......... 7,272,858 (13,091,406) 1,610,242 (2,972,756) 3,652,816 (5,600,385)
------------- ------------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations .......... 15,290,267 (5,707,926) 3,286,568 (1,227,412) 6,123,164 (2,575,858)
------------- ------------- ------------ ------------ ------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income................. (1,002,130) (1,025,504) (1,059,549) (1,076,680) (1,589,697) (1,821,052)
Net realized gain on investments...... -- (306,201) -- -- -- --
------------- ------------- ------------ ------------ ------------ ------------
Total Dividends.......................... (1,002,130) (1,331,705) (1,059,549) (1,076,680) (1,589,697) (1,821,052)
------------- ------------- ------------ ------------ ------------ ------------
RETAIL B SHARES:
Net investment income................. (126,624) (118,934) N/A N/A N/A N/A
Net realized gain on investments...... -- (32,760) N/A N/A N/A N/A
------------- ------------- ------------ ------------ ------------ ------------
Total Dividends.................... (126,624) (151,694) N/A N/A N/A N/A
------------- ------------- ------------ ------------ ------------ ------------
TRUST SHARES:
Net investment income................. (7,559,648) (6,325,088) (908,463) (691,805) (1,885,246) (1,269,258)
Net realized gain on investments...... -- (1,646,317) -- -- -- --
------------- ------------- ------------ ------------ ------------ ------------
Total Dividends.................... (7,559,648) (7,971,405) (908,463) (691,805) (1,885,246) (1,269,258)
------------- ------------- ------------ ------------ ------------ ------------
Total Dividends to shareholders.... (8,688,402) (9,454,804) (1,968,012) (1,768,485) (3,474,943) (3,090,310)
------------- ------------- ------------ ------------ ------------ ------------
NET INCREASE FROM SHARE TRANSACTIONS(1)..... 21,383,307 23,105,726 2,718,726 8,790,287 1,917,151 11,699,541
------------- ------------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets.... 27,985,172 7,942,996 4,037,282 5,794,390 4,565,372 6,033,373
------------- ------------- ------------ ------------ ------------ ------------
NET ASSETS AT END OF PERIOD
(INCLUDING LINE A).................... $ 199,070,668 $ 171,085,496 $ 48,599,757 $ 44,562,475 $ 78,158,475 $ 73,593,103
============= ============= ============ ============ ============ ============
(A) Undistributed (overdistributed) net
investment income (loss)............. $ (14,883) $ (26,014) $ (14,614) $ (14,614) $ (21,727) $ (21,727)
============= ============= ============ ============ ============ ============
</TABLE>
---------------------------------------------------------
(1) For detail on share transactions by series, see Statements of Changes in Net
Assets - Capital Stock Activity on pages 68 - 75.
SEE NOTES TO FINANCIAL STATEMENTS.
62-63
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
--------------------------- --------------------------
YEARS ENDED OCTOBER 31, YEARS ENDED OCTOBER 31,
2000 1999 2000 1999
------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
NET ASSETS at beginning of period........... $ 8,723,906 $ 8,516,218 $ 78,038,771 $ 83,019,676
------------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income.................... 411,448 338,909 3,935,948 3,696,094
Net realized gain (loss) on
investments sold ................... (148,987) (44,349) (462,422) 227,275
Net change in unrealized appreciation
(depreciation) of investments......... 477,226 (589,590) 3,869,503 (6,932,960)
------------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations .......... 739,687 (295,030) 7,343,029 (3,009,591)
------------- ----------- ------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income................. (39,818) (46,232) (1,917,353) (1,903,474)
Net realized gain on investments...... -- -- -- --
------------- ----------- ------------ ------------
Total Dividends.......................... (39,818) (46,232) (1,917,353 (1,903,474)
------------- ----------- ------------ ------------
RETAIL B SHARES:
Net investment income................. N/A N/A N/A N/A
Net realized gain on investments...... N/A N/A N/A N/A
------------- ----------- ------------ ------------
Total Dividends.................... N/A N/A N/A N/A
------------- ----------- ------------ ------------
TRUST SHARES:
Net investment income................. (371,630) (292,677) (2,181,119) (1,629,254)
Net realized gain on investments...... -- -- -- --
------------- ----------- ------------ ------------
Total Dividends.................... (371,630) (292,677) (2,181,119) (1,629,254)
------------- ----------- ------------ ------------
Total Dividends to shareholders.... (411,448) (338,909) (4,098,472) (3,532,728)
------------- ----------- ------------ ------------
NET INCREASE FROM SHARE TRANSACTIONS(1)..... 2,319,438 841,627 7,927,988 1,561,414
------------- ----------- ------------ ------------
Net increase (decrease) in net assets.... 2,647,677 207,688 11,172,545 (4,980,905)
------------- ----------- ------------ ------------
NET ASSETS AT END OF PERIOD
(INCLUDING LINE A).................... $ 11,371,583 $ 8,723,906 $ 89,211,316 $ 78,038,771
============= =========== ============ ============
(A) Undistributed (overdistributed) net
investment income (loss)............. $ 8,714 $ 5,370 $ 3 $ 162,527
============= =========== ============ ============
</TABLE>
---------------------------------------------------------
(1) For detail on share transactions by series, see Statements of Changes in Net
Assets - Capital Stock Activity on pages 68 - 75.
SEE NOTES TO FINANCIAL STATEMENTS.
62-63
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
RHODE ISLAND INTERMEDIATE
MUNICIPAL BOND FUND TAX-EXEMPT BOND FUND
---------------------------- ----------------------------------------------
PERIOD FROM
YEARS ENDED OCTOBER 31, JUNE 1, 2000 TO YEARS ENDED MAY 31,
2000 1999 OCTOBER 31, 2000 2000 1999
------------- ------------ ---------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSETS at beginning of period.................... $ 19,833,264 $ 20,209,657 $ 296,710,555 $ 356,995,000 $ 303,578,000
------------- ------------ ---------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income............................. 2,650,176 957,994 5,309,602 14,904,000 14,101,000
Net realized gain (loss) on
investments sold............... (208,694) (76,090) (1,438,177) (6,305,000) 6,046,000
Net change in unrealized appreciation
(depreciation) of investments.................. 3,049,944 (1,483,777) 13,867,739 (15,145,000) (7,281,000)
------------- ------------ ---------------- ------------- -------------
Net increase (decrease) in net
assets resulting from operations ............ 5,491,426 (601,873) 17,739,164 (6,546,000) 12,866,000
------------- ------------ ---------------- ------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income.......................... (1,101,845) (958,948) (278) N/A N/A
Net realized gain on investments............... -- (86,518) -- N/A N/A
------------- ------------ ---------------- ------------- -------------
Total Dividends................................... (1,101,845) (1,045,466) (278) N/A N/A
------------- ------------ ---------------- ------------- -------------
SHARES*:
Net investment income.......................... N/A N/A (887,981) (14,919,445) (14,101,000)
Net realized gain on investments............... N/A N/A -- (3,786,000) (5,447,000)
------------- ------------ ---------------- ------------- -------------
Total Dividends............................. N/A N/A (887,981) (18,705,445) (19,548,000)
------------- ------------ ---------------- ------------- -------------
TRUST SHARES:
Net investment income.......................... (1,356,898) N/A (4,090,860) N/A N/A
Net realized gain on investments............... -- N/A -- N/A N/A
------------- ------------ ---------------- ------------- -------------
Total Dividends............................. (1,356,898) N/A (4,090,860) N/A N/A
------------- ------------ ---------------- ------------- -------------
BKB SHARES:
Net investment income.......................... (191,433) N/A (315,375) N/A N/A
------------- ------------ ---------------- ------------- -------------
Total Dividends............................. (191,433) N/A (315,375) N/A N/A
------------- ------------ ---------------- ------------- -------------
Total Dividends to shareholders............. (2,650,176) (1,045,466) (5,294,494) (18,705,445) (19,548,000)
------------- ------------ ---------------- ------------- -------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1)... 96,363,713 1,270,946 (30,494,670) (35,033,000) 60,099,000
------------- ------------ ---------------- ------------- -------------
Net increase (decrease) in net assets............. 99,204,963 (376,393) (18,050,000) (60,284,445) 53,417,000
------------- ------------ ---------------- ------------- -------------
NET ASSETS AT END OF PERIOD
(INCLUDING LINE A)............................. $ 119,038,227 $ 19,833,264 $ 278,660,555 $ 296,710,555 $ 356,995,000
============= ============ ================ ============= =============
(A) Undistributed (overdistributed) net
investment income (loss)....................... $ (10,999) $ (11,177) $ (302) $ (19,000) $ (3,000)
============= ============ ================ ============= =============
</TABLE>
------------------------------------------------------------
(1) For detail on share transactions by series, see Statements of Changes in Net
Assets - Capital Stock Activity on pages 68 - 75.
* Prior to June 26, 2000, the Intermediate Tax-Exempt Bond and Connecticut
Intermediate Municipal Bond Funds offered only one series of shares, which
are included in these balances (see Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
64-65
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
CONNECTICUT INTERMEDIATE
MUNICIPAL BOND FUND
------------------------------------------------
PERIOD FROM
JUNE 1, 2000 TO YEARS ENDED MAY 31,
OCTOBER 31, 2000 2000 1999
---------------- ------------- -------------
<S> <C> <C> <C>
NET ASSETS at beginning of period.................... $ 148,901,936 $ 187,725,000 $ 142,107,000
---------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income............................. 2,768,776 7,730,000 7,408,000
Net realized gain (loss) on
investments sold............... (615,088) (1,938,000) 1,143,000
Net change in unrealized appreciation
(depreciation) of investments.................. 6,649,166 (8,643,000) (2,686,000)
---------------- ------------- -------------
Net increase (decrease) in net
assets resulting from operations ............ 8,802,854 (2,851,000) 5,865,000
---------------- ------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income.......................... (452) N/A N/A
Net realized gain on investments............... -- N/A N/A
---------------- ------------- -------------
Total Dividends................................... (452) N/A N/A
---------------- ------------- -------------
SHARES*:
Net investment income.......................... (454,853) (7,730,064) (7,408,000)
Net realized gain on investments............... -- (892,000) (1,010,000)
---------------- ------------- -------------
Total Dividends............................. (454,853) (8,622,064) (8,418,000)
---------------- ------------- -------------
TRUST SHARES:
Net investment income.......................... 1,842,145) N/A N/A
Net realized gain on investments............... -- N/A N/A
---------------- ------------- -------------
Total Dividends............................. (1,842,145) N/A N/A
---------------- ------------- -------------
BKB SHARES:
Net investment income.......................... (471,635) N/A N/A
---------------- ------------- -------------
Total Dividends............................. (471,635) N/A N/A
---------------- ------------- -------------
Total Dividends to shareholders............. (2,769,085) (8,622,064) (8,418,000)
---------------- ------------- -------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1)... (2,708,415) (27,350,000) 48,171,000
---------------- ------------- -------------
Net increase (decrease) in net assets............. 3,325,354 (38,823,064) 45,618,000
---------------- ------------- -------------
NET ASSETS AT END OF PERIOD
(INCLUDING LINE A)............................. $ 152,227,290 $ 148,901,936 $ 187,725,000
================ ============= =============
(A) Undistributed (overdistributed) net
investment income (loss)....................... $ (1,047) $ -- $ --
================ ============= =============
</TABLE>
------------------------------------------------------------
(1) For detail on share transactions by series, see Statements of Changes in Net
Assets - Capital Stock Activity on pages 68 - 75.
* Prior to June 26, 2000, the Intermediate Tax-Exempt Bond and Connecticut
Intermediate Municipal Bond Funds offered only one series of shares, which
are included in these balances (see Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
64-65
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA
MUNICIPAL BOND FUND
-----------------------------------------------------------
PERIOD FROM
JUNE 1, 2000 TO YEARS ENDED MAY 31,
OCTOBER 31, 2000 2000 1999
---------------- ------------ ------------
<S> <C> <C> <C>
NET ASSETS at beginning of period............................. $ 61,154,145 $ 68,796,000 $ 51,793,000
---------------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income...................................... 1,089,352 2,924,000 2,504,000
Net realized gain (loss) on investments sold............... (630,739) (659,000) 331,000
Net change in unrealized appreciation
(depreciation) of investments........................... 2,960,565 (3,569,000) (821,000)
---------------- ------------ ------------
Net increase (decrease) in net assets resulting
from operations ....................................... 3,419,178 (1,304,000) 2,014,000
---------------- ------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income................................... N/A N/A N/A
Net realized gain on investments........................ N/A N/A N/A
---------------- ------------ ------------
Total Dividends............................................ N/A N/A N/A
---------------- ------------ ------------
SHARES*:
Net investment income................................... N/A (2,923,855) (2,504,000)
Net realized gain on investments........................ N/A -- (755,000)
---------------- ------------ ------------
Total Dividends...................................... N/A (2,923,855) (3,259,000)
---------------- ------------ ------------
TRUST SHARES:
Net investment income................................... (1,088,989) N/A N/A
Net realized gain on investments........................ -- N/A N/A
---------------- ------------ ------------
Total Dividends...................................... (1,088,989) N/A N/A
---------------- ------------ ------------
BKB SHARES:
Net investment income................................... N/A N/A N/A
Net realized gain on investments........................ N/A N/A N/A
---------------- ------------ ------------
Total Dividends...................................... N/A N/A N/A
---------------- ------------ ------------
Total Dividends to shareholders...................... (1,088,989) (2,923,855) (3,259,000)
---------------- ------------ ------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1)............ (1,711,290) (3,414,000) 18,248,000
---------------- ------------ ------------
Net increase (decrease) in net assets...................... 618,899 (7,641,855) 17,003,000
---------------- ------------ ------------
NET ASSETS AT END OF PERIOD
(INCLUDING LINE A)...................................... $ 61,773,044 $ 61,154,145 $ 68,796,000
================ ============ ============
(A) Undistributed (overdistributed) net
investment income (loss)................................... $ 227 $ -- $ --
================ ============ ============
</TABLE>
--------------------------------------------------------------------
(1) For detail on share transactions by series, see Statements of Changes in
Net Assets - Capital Stock Activity on pages 74 - 75.
* Prior to June 26, 2000, the Florida Municipal Bond and Massachusetts
Intermediate Municipal Bond Funds offered only one series of shares, which
are included in these balances (see Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
66-67
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MASSACHUSETTS INTERMEDIATE
MUNICIPAL BOND FUND
-------------------------------------------------------
PERIOD FROM
JUNE 1, 2000 TO YEARS ENDED MAY 31,
OCTOBER 31, 2000 2000 1999
---------------- ------------- -------------
<S> <C> <C> <C>
NET ASSETS at beginning of period............................. $ 231,140,208 $ 267,871,000 $ 206,137,000
---------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income...................................... 4,241,452 11,388,000 10,113,000
Net realized gain (loss) on investments sold............... (1,215,747) (1,141,000) 1,109,000
Net change in unrealized appreciation
(depreciation) of investments........................... 10,490,315 (14,553,000) (2,392,000)
---------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations ....................................... 13,516,020 (4,306,000) 8,830,000
---------------- ------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income................................... (12,364) N/A N/A
Net realized gain on investments........................ -- N/A N/A
---------------- ------------- -------------
Total Dividends............................................ (12,364) N/A N/A
---------------- ------------- -------------
SHARES*:
Net investment income................................... (703,423) (11,388,000) (10,113,000)
Net realized gain on investments........................ -- -- --
---------------- ------------- -------------
Total Dividends...................................... (703,423) (11,388,000) (10,113,000)
---------------- ------------- -------------
TRUST SHARES:
Net investment income................................... (2,664,672) N/A N/A
Net realized gain on investments........................ -- N/A N/A
---------------- ------------- -------------
Total Dividends...................................... (2,664,672) N/A N/A
---------------- ------------- -------------
BKB SHARES:
Net investment income................................... (861,423) N/A N/A
Net realized gain on investments........................ -- N/A N/A
---------------- ------------- -------------
Total Dividends...................................... (861,423) N/A N/A
---------------- ------------- -------------
Total Dividends to shareholders...................... (4,241,882) (11,388,000) (10,113,000)
---------------- ------------- -------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1)............ (8,060,994) (21,037,000) 63,017,000
---------------- ------------- -------------
Net increase (decrease) in net assets...................... 1,213,144 (36,731,000) 61,734,000
---------------- ------------- -------------
NET ASSETS AT END OF PERIOD
(INCLUDING LINE A)...................................... $ 232,353,352 $ 231,140,000 $ 267,871,000
================ ============= =============
(A) Undistributed (overdistributed) net
investment income (loss)................................... $ (2) $ -- $ --
================ ============= =============
</TABLE>
--------------------------------------------------------------------
(1) For detail on share transactions by series, see Statements of Changes in
Net Assets - Capital Stock Activity on pages 74 - 75.
* Prior to June 26, 2000, the Florida Municipal Bond and Massachusetts
Intermediate Municipal Bond Funds offered only one series of shares, which
are included in these balances (see Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
66-67
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
TAX-EXEMPT BOND FUND
-------------------------------------------------------
YEARS ENDED OCTOBER 31,
2000 1999
-------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
RETAIL A SHARES:
Sold.............................................. 1,791,797 $ 18,608,441 1,027,378 $ 10,924,021
Issued to shareholders in reinvestment
of dividends ................................ 74,101 773,338 90,411 1,054,920
Repurchased....................................... (2,366,348) (24,605,217) (822,141) (8,919,372)
----------- ------------ ----------- -------------
Net increase (decrease)........................... (500,450) $ (5,223,438) 295,648 $ 3,059,569
=========== ============ =========== =============
RETAIL B SHARES:
Sold.............................................. 49,544 $ 513,626 121,001 $ 1,359,050
Issued to shareholders in reinvestment
of dividends ................................ 8,683 90,739 9,992 100,123
Repurchased....................................... (64,874) (669,832) (43,965) (479,393)
----------- ------------ ----------- -------------
Net increase (decrease)........................... (6,647) $ (65,467) 87,028 $ 979,780
=========== ============ =========== =============
TRUST SHARES:
Sold.............................................. 7,048,235 $ 72,972,198 2,480,419 $ 27,090,728
Issued to shareholders in reinvestment
of dividends ............................... 273,242 2,855,131 320,864 3,516,363
Repurchased....................................... (4,737,720) (49,155,117) (1,066,969) (11,540,714)
----------- ------------ ----------- -------------
Net increase...................................... 2,583,757 $ 26,672,212 1,734,314 $ 19,066,377
=========== ============ =========== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
68-69
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
CONNECTICUT MUNICIPAL BOND FUND
-------------------------------------------------------
YEARS ENDED OCTOBER 31,
2000 1999
--------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
---------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
RETAIL A SHARES:
Sold.............................................. 700,973 $ 7,153,911 1,302,912 $ 13,759,257
Issued to shareholders in reinvestment
of dividends ................................ 79,825 811,895 81,055 674,313
Repurchased....................................... (989,731) (10,020,426) (1,033,862) (10,721,396)
---------- -------------- ----------- -------------
Net increase (decrease)........................... (208,933) $ (2,054,620) 350,105 $ 3,712,174
========== ============== =========== =============
RETAIL B SHARES:
Sold.............................................. N/A N/A N/A N/A
Issued to shareholders in reinvestment
of dividends ................................ N/A N/A N/A N/A
Repurchased....................................... N/A N/A N/A N/A
---------- -------------- ----------- -------------
Net increase (decrease)........................... N/A N/A N/A N/A
========== ============== =========== =============
TRUST SHARES:
Sold.............................................. 940,347 $ 9,561,855 832,405 $ 8,822,079
Issued to shareholders in reinvestment
of dividends ............................... 274 2,786 318 2,396
Repurchased....................................... (471,802) (4,791,295) (349,964) (3,746,362)
---------- -------------- ----------- -------------
Net increase...................................... 468,819 $ 4,773,346 482,759 $ 5,078,113
========== ============== =========== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
68-69
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
MASSACHUSETTS MUNICIPAL BOND FUND
-------------------------------------------------------
YEARS ENDED OCTOBER 31,
2000 1999
---------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
RETAIL A SHARES:
Sold.............................................. 1,235,531 $ 12,208,956 1,195,565 $ 12,444,513
Issued to shareholders in reinvestment
of dividends ................................ 117,115 1,155,697 138,671 1,440,807
Repurchased....................................... (2,070,848) (20,326,271) (1,464,110) (15,097,467)
----------- ------------- ----------- -------------
Net increase (decrease)........................... (718,202) $ (6,961,618) (129,874) $ (1,212,147)
=========== ============= =========== =============
RETAIL B SHARES:
Sold.............................................. N/A N/A N/A N/A
Issued to shareholders in reinvestment
of dividends ................................ N/A N/A N/A N/A
Repurchased....................................... N/A N/A N/A N/A
----------- ------------- ----------- -------------
Net increase (decrease)........................... N/A N/A N/A N/A
=========== ============= =========== =============
TRUST SHARES:
Sold.............................................. 2,212,486 $ 21,729,952 1,544,810 $ 15,868,262
Issued to shareholders in reinvestment
of dividends ............................... 3,510 34,688 4,943 50,657
Repurchased....................................... (1,300,931) (12,885,871) (296,766) (3,007,231)
----------- ------------- ----------- -------------
Net increase...................................... 915,065 $ 8,878,769 1,252,987 $ 12,911,688
=========== ============= =========== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
68-69
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NEW JERSEY MUNICIPAL BOND FUND
-------------------------------------------------------
YEARS ENDED OCTOBER 31,
2000 1999
-------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
RETAIL A SHARES:
Sold.............................................. 318,940 $ 3,073,935 152,836 $ 1,530,335
Issued to shareholders in reinvestment
of dividends ................................ 3,639 35,305 2,738 27,090
Repurchased....................................... (337,502) (3,250,420) (99,073) (969,625)
----------- ------------ ----------- -------------
Net increase (decrease)........................... (14,923) $ (141,180) 56,501 $ 587,800
=========== ============ =========== =============
TRUST SHARES:
Sold.............................................. 315,159 $ 3,057,446 74,984 $ 757,940
Issued in connection with acquisition (Note 9).... -- -- -- --
Issued to shareholders in reinvestment
of dividends ................................ 144 1,392 -- --
Repurchased....................................... (62,190) (598,220) (51,120) (504,113)
----------- ------------ ----------- -------------
Net increase...................................... 253,113 $ 2,460,618 23,864 $ 253,827
=========== ============ =========== =============
BKB SHARES:
Sold.............................................. N/A N/A N/A N/A
Issued in connection with acquisition (Note 9).... N/A N/A N/A N/A
Issued to shareholders in reinvestment
of dividends ................................ N/A N/A N/A N/A
Repurchased....................................... N/A N/A N/A N/A
----------- ------------ ----------- -------------
Net increase...................................... N/A N/A N/A N/A
=========== ============ =========== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
70-71
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NEW YORK MUNICIPAL BOND FUND
-------------------------------------------------------
YEARS ENDED OCTOBER 31,
2000 1999
--------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
---------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
RETAIL A SHARES:
Sold.............................................. 1,503,874 $ 16,030,595 790,902 $ 8,808,575
Issued to shareholders in reinvestment
of dividends ................................ 137,108 1,467,088 118,514 1,440,313
Repurchased....................................... (2,028,517) (21,641,046) (1,215,806) (13,618,561)
---------- -------------- ----------- -------------
Net increase (decrease)........................... (387,535) $ (4,143,363) (306,390) $ (3,369,673)
========== ============== =========== =============
TRUST SHARES:
Sold.............................................. 2,123,943 $ 22,723,789 895,936 $ 10,126,919
Issued in connection with acquisition (Note 9).... -- -- -- --
Issued to shareholders in reinvestment
of dividends ................................ 14,448 154,531 15,619 172,798
Repurchased....................................... (1,011,328) (10,806,969) (484,126) (5,368,630)
---------- -------------- ----------- -------------
Net increase...................................... 1,127,063 $ 12,071,351 427,429 $ 4,931,087
========== ============== =========== =============
BKB SHARES:
Sold.............................................. N/A N/A N/A N/A
Issued in connection with acquisition (Note 9).... N/A N/A N/A N/A
Issued to shareholders in reinvestment
of dividends ................................ N/A N/A N/A N/A
Repurchased....................................... N/A N/A N/A N/A
---------- -------------- ----------- -------------
Net increase...................................... N/A N/A N/A N/A
========== ============== =========== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
70-71
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
RHODE ISLAND MUNICIPAL BOND FUND
-------------------------------------------------------
YEARS ENDED OCTOBER 31,
2000 1999
---------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
RETAIL A SHARES:
Sold.............................................. 1,019,352 $ 10,627,539 670,082 $ 7,391,836
Issued to shareholders in reinvestment
of dividends ................................ 35,894 376,889 21,822 490,026
Repurchased....................................... (549,449) (5,742,965) (585,107) (6,610,916)
----------- ------------- ----------- -------------
Net increase (decrease)........................... 505,797 $ 5,261,463 106,797 $ 1,270,946
=========== ============= =========== =============
TRUST SHARES:
Sold.............................................. 367,557 $ 3,931,226 -- --
Issued in connection with acquisition (Note 9).... 7,472,341 78,684,074 -- --
Issued to shareholders in reinvestment
of dividends ................................ 14 149 -- --
Repurchased....................................... (155,955) (1,665,586) -- --
----------- ------------- ----------- -------------
Net increase...................................... 7,683,957 $ 80,949,863 -- --
=========== ============= =========== =============
BKB SHARES:
Sold.............................................. 4,135 $ 45,127 N/A N/A
Issued in connection with acquisition (Note 9).... 1,152,977 12,140,736 N/A N/A
Issued to shareholders in reinvestment
of dividends ................................ 15,368 164,278 N/A N/A
Repurchased....................................... (205,300) (2,197,754) N/A N/A
----------- ------------- ----------- -------------
Net increase...................................... 967,180 $ 10,152,387 N/A N/A
=========== ============= =========== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
70-71
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
INTERMEDIATE TAX-EXEMPT BOND FUND
---------------------------------------------------------------------
PERIOD FROM
JUNE 1, 2000 TO YEARS ENDED MAY 31,
OCTOBER 31, 2000 2000 1999
------------------------------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
---------- ------------ ----------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
RETAIL A SHARES:
Sold..................................... 5,972 $ 59,821 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. -- -- N/A N/A N/A N/A
Repurchased.............................. (5,833) (58,632) N/A N/A N/A N/A
---------- ------------ ----------- ------------- ---------- ------------
Net increase............................. 139 $ 1,189 N/A N/A N/A N/A
========== ============ =========== ============= ========== ============
SHARES*:
Sold..................................... 38,235 $ 375,722 10,897,000 $ 106,799,000 8,401,000 $ 88,484,000
Issued to shareholders in
reinvestment of dividends ............. -- -- 470,000 4,610,000 563,000 5,924,000
Repurchased.............................. (593,718) (5,777,207) (15,006,000) (146,442,000) (3,252,000) (34,309,000)
---------- ------------ ----------- ------------- ---------- ------------
Net increase (decrease).................. (555,483) $ (5,401,485) (3,639,000) $ (35,033,000) 5,712,000 $ 60,099,000
========== ============ =========== ============= ========== ============
TRUST SHARES:
Sold..................................... 435,459 $ 3,978,752 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. 5,382 53,522 N/A N/A N/A N/A
Repurchased.............................. (2,017,756) (19,714,004) N/A N/A N/A N/A
---------- ------------ ----------- ------------- ---------- ------------
Net increase (decrease).................. (1,576,915) $(15,681,730) N/A N/A N/A N/A
========== ============ =========== ============= ========== ============
BKB SHARES:
Sold..................................... 57,927 $ 573,724 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. 29,741 297,562 N/A N/A N/A N/A
Repurchased.............................. (1,031,447) (10,283,930) N/A N/A N/A N/A
---------- ------------ ----------- ------------- ---------- ------------
Net decrease............................. (943,779) $ (9,412,644) N/A N/A N/A N/A
========== ============ =========== ============= ========== ============
</TABLE>
-------------------------------------------------
* Prior to June 26, 2000, the Intermediate Tax-Exempt Bond and Connecticut
Intermediate Municipal Bond Funds offered only one series of shares, which
are included in these balances (see Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
72-73
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
------------------------------------------------------------------
PERIOD FROM
JUNE 1, 2000 TO YEARS ENDED MAY 31,
OCTOBER 31, 2000 2000 1999
------------------------------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
--------- ----------- ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
RETAIL A SHARES:
Sold..................................... 6,292 $ 65,435 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. 44 453 N/A N/A N/A N/A
Repurchased.............................. -- -- N/A N/A N/A N/A
--------- ----------- ----------- ------------ ----------- ------------
Net increase............................. 6,336 $ 65,888 N/A N/A N/A N/A
========= =========== =========== ============ =========== ============
SHARES*:
Sold..................................... 103,558 $ 1,048,443 4,351,000 $ 44,297,000 6,267,000 $ 68,008,000
Issued to shareholders in
reinvestment of dividends ............. -- -- 233,000 2,383,000 198,000 2,159,000
Repurchased.............................. (241,863) (2,444,804) (7,282,000) (74,030,000) (2,025,000) (21,996,000)
--------- ----------- ----------- ------------ ----------- ------------
Net increase (decrease).................. (138,305) $(1,396,361) (2,698,000) $(27,350,000) 4,440,000 $ 48,171,000
========= =========== =========== ============ =========== ============
TRUST SHARES:
Sold..................................... 493,080 $ 4,082,706 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. 2,852 29,511 N/A N/A N/A N/A
Repurchased.............................. (295,701) (2,048,142) N/A N/A N/A N/A
--------- ----------- ----------- ------------ ----------- ------------
Net increase (decrease).................. 200,231 $ 2,064,075 N/A N/A N/A N/A
========= =========== =========== ============ =========== ============
BKB SHARES:
Sold..................................... 124,697 $ 1,295,303 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. 47,685 493,196 N/A N/A N/A N/A
Repurchased.............................. (506,913) (5,230,516) N/A N/A N/A N/A
--------- ----------- ----------- ------------ ----------- ------------
Net decrease............................. (334,531) $(3,442,017) N/A N/A N/A N/A
========= =========== =========== ============ =========== ============
</TABLE>
-------------------------------------------------
* Prior to June 26, 2000, the Intermediate Tax-Exempt Bond and Connecticut
Intermediate Municipal Bond Funds offered only one series of shares, which
are included in these balances (see Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
72-73
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA MUNICIPAL BOND FUND
-------------------------------------------------------------------
PERIOD FROM
JUNE 1, 2000 TO YEARS ENDED MAY 31,
OCTOBER 31, 2000 2000 1999
----------------------------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
---------- ----------- ----------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
RETAIL A SHARES:
Sold..................................... N/A N/A N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. N/A N/A N/A N/A N/A N/A
Repurchased.............................. N/A N/A N/A N/A N/A N/A
---------- ----------- ----------- ------------ ---------- ------------
Net increase ............................ N/A N/A N/A N/A N/A N/A
========== =========== =========== ============ ========== ============
SHARES*:
Sold..................................... 118,755 $ 1,137,471 1,946,000 $ 18,910,000 2,151,000 $ 22,210,000
Issued to shareholders in
reinvestment of dividends ............. -- -- 4,000 36,000 74,000 767,000
Repurchased.............................. (57,681) (556,316) (2,312,000) (22,360,000) (458,000) (4,729,000)
---------- ----------- ----------- ------------ ---------- ------------
Net increase (decrease).................. 61,074 $ 581,155 (362,000) $ (3,414,000) 1,767,000 $ 18,248,000
========== =========== =========== ============ ========== ============
TRUST SHARES:
Sold..................................... 345,470 $ 3,414,114 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. 873 8,573 N/A N/A N/A N/A
Repurchased.............................. (581,217) (5,715,132) N/A N/A N/A N/A
---------- ----------- ----------- ------------ ---------- ------------
Net decrease............................. (234,874) $(2,292,445) N/A N/A N/A N/A
========== =========== =========== ============ ========== ============
BKB SHARES:
Sold..................................... N/A N/A N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. N/A N/A N/A N/A N/A N/A
Repurchased.............................. N/A N/A N/A N/A N/A N/A
---------- ----------- ----------- ------------ ---------- ------------
Net decrease............................. N/A N/A N/A N/A N/A N/A
========== =========== =========== ============ ========== ============
</TABLE>
-----------------------------------------------------
* Prior to June 26, 2000, the Florida Municipal Bond and Massachusetts
Intermediate Municipal Bond Funds offered only one series of shares, which
are included in these balances (see Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
74-75
<PAGE>
GALAXY TAX-EXEMPT BOND FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
--------------------------------------------------------------------
PERIOD FROM
JUNE 1, 2000 TO YEARS ENDED MAY 31,
OCTOBER 31, 2000 2000 1999
------------------------------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
--------- ----------- ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
RETAIL A SHARES:
Sold..................................... 229,654 $ 2,329,849 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. 1,244 12,630 N/A N/A N/A N/A
Repurchased.............................. (98,717) (998,026) N/A N/A N/A N/A
--------- ----------- ----------- ------------ ----------- ------------
Net increase ............................ 132,181 $ 1,344,453 N/A N/A N/A N/A
========= =========== =========== ============ =========== ============
SHARES*:
Sold..................................... 165,820 $ 1,646,253 7,367,000 $ 73,630,000 9,328,000 $ 98,037,000
Issued to shareholders in
reinvestment of dividends ............. -- -- 301,000 3,001,000 291,000 3,049,000
Repurchased.............................. (377,648) (3,755,844) (9,812,000) (97,668,000) (3,627,000) (38,069,000)
--------- ----------- ----------- ------------ ----------- ------------
Net increase (decrease).................. (211,828) $(2,109,591) (2,144,000) $(21,037,000) 5,992,000 $ 63,017,000
========= =========== =========== ============ =========== ============
TRUST SHARES:
Sold..................................... 834,209 $ 6,856,918 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. 1,153 11,673 N/A N/A N/A N/A
Repurchased.............................. (964,882) (8,168,143) N/A N/A N/A N/A
--------- ----------- ----------- ------------ ----------- ------------
Net decrease............................. (129,520) $(1,299,552) N/A N/A N/A N/A
========= =========== =========== ============ =========== ============
BKB SHARES:
Sold..................................... 128,151 $ 1,299,608 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends ............. 88,333 894,035 N/A N/A N/A N/A
Repurchased.............................. (808,149) (8,189,947) N/A N/A N/A N/A
--------- ----------- ----------- ------------ ----------- ------------
Net decrease............................. (591,665) $(5,996,304) N/A N/A N/A N/A
========= =========== =========== ============ =========== ============
</TABLE>
-----------------------------------------------------
* Prior to June 26, 2000, the Florida Municipal Bond and Massachusetts
Intermediate Municipal Bond Funds offered only one series of shares, which
are included in these balances (see Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
74-75
<PAGE>
TAX-EXEMPT BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RETAIL A SHARES TRUST SHARES
YEARS ENDED OCTOBER 31, YEARS ENDED OCTOBER 31,
--------------------------------------------- ---------------------------------------------
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period... $ 10.33 $ 11.30 $ 11.06 $ 10.78 $ 10.78 $ 10.33 $ 11.30 $ 11.06 $ 10.78 $ 10.78
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (A)........... 0.47 0.46 0.48 0.50 0.50 0.49 0.49 0.50 0.53 0.53
Net realized and unrealized
gain (loss) on investments.. ..... 0.35 (0.83) 0.34 0.29 -- 0.35 (0.83) 0.34 0.29 --
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from
Investment Operations:......... 0.82 (0.37) 0.82 0.79 0.50 0.84 (0.34) 0.84 0.82 0.53
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income (0.47) (0.46) (0.49) (0.50) (0.50) (0.49) (0.49) (0.51) (0.53) (0.53)
Dividends from net realized
capital gains..................... -- (0.14) (0.09) (0.01) -- -- (0.14) (0.09) (0.01) --
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Dividends:.................. (0.47) (0.60) (0.58) (0.51) (0.50) (0.49) (0.63) (0.60) (0.54) (0.53)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in
net asset value...................... 0.35 (0.97) 0.24 0.28 -- 0.35 (0.97) 0.24 0.28 --
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period......... $ 10.68 $ 10.33 $ 11.30 $ 11.06 $ 10.78 $ 10.68 $ 10.33 $ 11.30 $ 11.06 $ 10.78
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Total Return(2)........................ 8.12% (3.45)% 7.60% 7.49% 4.77% 8.32% (3.25)% 7.85% 7.75% 5.03%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)...... $ 21,229 $ 25,704 $ 24,764 $ 25,465 $ 28,339 $174,415 $141,999 $135,664 $122,218 $103,163
Ratios to average net assets:
Net investment income including
reimbursement/waiver.... ......... 4.48% 4.25% 4.32% 4.60% 4.68% 4.66% 4.46% 4.55% 4.85% 4.91%
Operating expenses including
reimbursement/waiver....... ...... 0.89% 0.92% 0.94% 0.95% 0.93% 0.71% 0.71% 0.71% 0.70% 0.70%
Operating expenses excluding
reimbursement/waiver....... ...... 1.10% 1.12% 1.15% 1.18% 1.18% 0.91% 0.91% 0.92% 0.96% 0.95%
Portfolio Turnover Rate................ 73% 23% 59% 78% 15% 73% 23% 59% 78% 15%
</TABLE>
--------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund began offering Retail B Shares on March 4, 1996.
(2) Calculation does not include the effect of any sales charge for Retail A
Shares and Retail B Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the years ended October 31, 2000, 1999, 1998, 1997 and
1996 were $0.45, $0.44, $0.46, $0.47 and $0.48, respectively. Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Trust Shares for the years ended October 31, 2000, 1999, 1998, 1997 and
1996 were $0.47, $0.47, $0.48, $0.51 and $0.51, respectively. Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail B Shares for the years ended October 31, 2000, 1999, 1998 and 1997
and the period ended October 31, 1996 were $0.38, $0.37, $0.40, $0.40 and
$0.25, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
76-77
<PAGE>
TAX-EXEMPT BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RETAIL B SHARES
YEARS ENDED OCTOBER 31, PERIOD ENDED
---------------------------------- OCTOBER 31
2000 1999 1998 1997 1996(1)
------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 10.33 $ 11.30 $ 11.06 $ 10.78 $10.94
------- ------- ------- ------- -----------
Income from Investment Operations:
Net investment income (A)............ 0.40 0.39 0.42 0.43 0.27
Net realized and unrealized
gain (loss) on investments.. ...... 0.35 (0.83) 0.33 0.29 (0.16)
------- ------- ------- ------- -----------
Total from
Investment Operations:.......... 0.75 (0.44) 0.75 0.72 0.11
------- ------- ------- ------- -----------
Less Dividends:
Dividends from net investment income. (0.40) (0.39) (0.42) (0.43) (0.27)
Dividends from net realized
capital gains...................... -- (0.14) (0.09) (0.01) --
------- ------- ------- ------- -----------
Total Dividends:................... (0.40) (0.53) (0.51) (0.44) (0.27)
------- ------- ------- ------- -----------
Net increase (decrease) in
net asset value....................... 0.35 (0.97) 0.24 0.28 (0.16)
------- ------- ------- ------- -----------
Net Asset Value, End of Period.......... $ 10.68 $ 10.33 $ 11.30 $ 11.06 $10.78
======= ======= ======= ======= ===========
Total Return(2)......................... 7.41% (4.07)% 6.95% 6.83% 1.08%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's)....... $ 3,426 $ 3,382 $ 2,715 $ 1,690 $ 787
Ratios to average net assets:
Net investment income including
reimbursement/waiver.... .......... 3.82% 3.61% 3.71% 3.95% 4.08%*
Operating expenses including
reimbursement/waiver....... ....... 1.55% 1.55% 1.55% 1.60% 1.57%*
Operating expenses excluding
reimbursement/waiver....... ....... 1.75% 1.75% 1.76% 1.83% 1.77%*
Portfolio Turnover Rate................. 73% 23% 59% 78% 15%
</TABLE>
--------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund began offering Retail B Shares on March 4, 1996.
(2) Calculation does not include the effect of any sales charge for Retail A
Shares and Retail B Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the years ended October 31, 2000, 1999, 1998, 1997 and
1996 were $0.45, $0.44, $0.46, $0.47 and $0.48, respectively. Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Trust Shares for the years ended October 31, 2000, 1999, 1998, 1997 and
1996 were $0.47, $0.47, $0.48, $0.51 and $0.51, respectively. Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail B Shares for the years ended October 31, 2000, 1999, 1998 and 1997
and the period ended October 31, 1996 were $0.38, $0.37, $0.40, $0.40 and
$0.25, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
76-77
<PAGE>
CONNECTICUT MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RETAIL A SHARES TRUST SHARE
YEARS ENDED OCTOBER 31, YEARS ENDED OCTOBER 31,
--------------------------------------------- ---------------------------------------------
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.. $ 10.09 $ 10.82 $ 10.47 $ 10.14 $ 10.13 $ 10.09 $ 10.82 $ 10.47 $ 10.14 $ 10.13
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (A)........... 0.44 0.43 0.43 0.45 0.42 0.46 0.45 0.45 0.47 0.44
Net realized and unrealized gain
(loss) on investments.. ........... 0.30 (0.73) 0.35 0.33 0.01 0.30 (0.73) 0.35 0.33 0.01
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from Investment
Operations:................... 0.74 (0.30) 0.78 0.78 0.43 0.76 (0.28) 0.80 0.80 0.45
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Less Dividends:
Dividends from net
investment income................ (0.44) (0.43) (0.43) (0.45) (0.42) (0.46) (0.45) (0.45) (0.47) (0.44)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Dividends:.................. (0.44) (0.43) (0.43) (0.45) (0.42) (0.46) (0.45) (0.45) (0.47) (0.44)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in
net asset value...................... 0.30 (0.73) 0.35 0.33 0.01 0.30 (0.73) 0.35 0.33 0.01
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period......... $ 10.39 $ 10.09 $ 10.82 $ 10.47 $ 10.14 10.39 $ 10.09 $ 10.82 $ 10.47 $ 10.14
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Total Return(1)........................ 7.50% (2.87)% 7.58% 7.86% 4.32% 7.71% (2.68)% 7.81% 8.06% 4.54%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)...... $ 25,346 $ 26,715 $ 24,856 $ 23,355 $ 23,244 $ 23,254 $ 17,848 $ 13,913 $ 9,866 $ 6,348
Ratios to average net assets:
Net investment income including
reimbursement/waiver.............. 4.30% 4.07% 4.02% 4.30% 4.13% 4.49% 4.26% 4.24% 4.51% 4.34%
Operating expenses including
reimbursement/waiver.............. 0.84% 0.85% 0.88% 0.70% 0.70% 0.65% 0.65% 0.67% 0.49% 0.49%
Operating expenses excluding
reimbursement/waiver.............. 1.25% 1.25% 1.31% 1.31% 1.38% 1.06% 1.05% 1.10% 1.10% 1.17%
Portfolio Turnover Rate................ 33% 53% 46% 42% 3% 33% 53% 46% 42% 3%
----------------------------------------------
</TABLE>
(1) Calculation does not include the effect of any sales charge for Retail A
Shares.
(A) Netinvestment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the years ended October 31, 2000, 1999, 1998, 1997 and
1996 were $0.40, $0.39, $0.38, $0.38 and $0.35, respectively. Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for Trust
Shares for the years ended October 31, 2000, 1999, 1998, 1997 and 1996 were
$0.42, $0.41, $0.40, $0.41 and $0.37, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
78-79
<PAGE>
MASSACHUSETTS MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RETAIL A SHARE TRUST SHARES
YEARS ENDED OCTOBER 31, YEARS ENDED OCTOBER 31,
--------------------------------------------- ---------------------------------------------
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period... $ 9.76 $ 10.53 $ 10.25 $ 9.94 $ 9.98 $ 9.76 $ 10.53 $ 10.25 $ 9.94 $ 9.98
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (A)........... 0.45 0.43 0.46 0.45 0.43 0.47 0.45 0.47 0.46 0.46
Net realized and unrealized
gain (loss) on investments......... 0.34 (0.77) 0.27 0.32 (0.04) 0.34 (0.77) 0.27 0.32 (0.04)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from Investment
Operations: ................... 0.79 (0.34) 0.73 0.77 0.39 0.81 (0.32) 0.74 0.78 0.42
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Less Dividends:
Dividends from net
investment income ................ (0.45) (0.43) (0.45) (0.46) (0.43) (0.47) (0.45) (0.46) (0.47) 0.46)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Dividends:.................. (0.45) (0.43) (0.45) (0.46) (0.43) (0.47) (0.45) (0.46) (0.47) (0.46)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in
net asset value ..................... 0.34 (0.77) 0.28 0.31 (0.04) 0.34 (0.77) 0.28 0.31 (0.04)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period......... $ 10.10 $ 9.76 $ 10.53 $ 10.25 $ 9.94 $ 10.10 $ 9.76 $ 10.53 $ 10.25 $ 9.94
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Return (1)....................... 8.30% (3.35)% 7.22% 7.92% 4.05% 8.47% (3.17)% 7.42% 8.06% 4.27%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)...... $ 33,830 $ 39,696 $ 44,189 $ 33,318 $ 26,275 $ 44,328 $ 33,897 $ 23,371 $ 13,986 $ 11,047
Ratios to average net assets:
Net investment income including
reimbursement/waiver. ............ 4.55% 4.18% 4.30% 4.38% 4.42% 4.71% 4.36% 4.49% 4.57% 4.60%
Operating expenses including
reimbursement/waiver ............. 0.75% 0.79% 0.78% 0.63% 0.66% 0.59% 0.61% 0.60% 0.44% 0.48%
Operating expenses excluding
reimbursement/waiver ............. 1.15% 1.19% 1.21% 1.20% 1.32% 1.00% 1.01% 1.03% 1.01% 1.14%
Portfolio Turnover Rate................ 34% 34% 44% 48% 16% 34% 34% 44% 48% 16%
</TABLE>
-----------------------------------------
(1) Calculation does not include the effect of any sales charge for Retail A
Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the years ended October 31, 2000, 1999, 1998, 1997 and
1996 were $0.41, $0.39, $0.41, $0.39 and $0.37, respectively. Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for Trust
Shares for the years ended October 31, 2000, 1999, 1998, 1997 and 1996 were
$0.43, $0.41, $0.42, $0.40 and $0.40, repectively.
SEE NOTES TO FINANCIAL STATEMENTS.
80-81
<PAGE>
NEW JERSEY MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RETAIL A SHARES TRUST SHARES
YEAR ENDED OCTOBER 31, PERIOD ENDED YEAR ENDED OCTOBER 31, PERIOD ENDED
---------------------- OCTOBER 31, ---------------------- OCTOBER 31,
2000 1999 1998(1) 2000 1999 1998(1)
--------- --------- ------------ -------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, Beginning of Period........ $ 9.56 $ 10.24 $ 10.00 $ 9.56 $ 10.24 $ 10.00
--------- --------- ------------ -------- ---------- -------------
Income from Investment Operations:
Net investment income (A)................ 0.40 0.36 0.20 0.40 0.38 0.21
Net realized and unrealized gain
(loss) on investments .................. 0.31 (0.68) 0.24 0.32 (0.68) 0.24
--------- --------- ------------ -------- ---------- -------------
Total from Investment Operations:.... 0.71 (0.32) 0.44 0.72 (0.30) 0.45
--------- --------- ------------ -------- ---------- -------------
Less Dividends
Dividends from net investment income..... (0.39) (0.36) (0.20) (0.40) (0.38) (0.21)
--------- --------- ------------ -------- ---------- -------------
Total Dividends:....................... (0.39) (0.36) (0.20) (0.40) (0.38) (0.21)
--------- --------- ------------ -------- ---------- -------------
Net increase (decrease) in net asset value.. 0.32 (0.68) 0.24 0.32 (0.68) 0.24
--------- --------- ------------ -------- ---------- -------------
Net Asset Value, End of Period.............. $ 9.88 $ 9.56 $ 10.24 $ 9.88 $ 9.56 $ 10.24
========= ========= ============ ======== ========== =============
Total Return(2)............................. 7.61% (3.24)% 4.34%** 7.74% 3.06)% 4.48%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's)........... $ 1,198 $ 1,302 $ 815 $ 10,174 $ 7,422 $ 7,701
Ratios to average net assets:
Net investment income including
reimbursement/waive ................... 4.03% 3.56% 3.62%* 4.16% 3.76% 3.79%*
Operating expenses including
reimbursement/waiver .................. 0.99% 1.11% 1.09%* 0.86% 0.92% 0.92%*
Operating expenses excluding
reimbursement/waiver .................. 2.02% 2.11% 3.65%* 1.64% 1.63% 2.07%*
Portfolio Turnover Rate..................... 77% 41% 53%** 77% 41% 53%**
</TABLE>
-----------------------------------------------
* Annualized.
** Not annualized.
(1) The Fund commenced operations on April 3, 1998.
(2) Calculation does not include the effect of any sales charge for Retail A
Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the years ended October 31, 2000 and 1999 and the
period ended October 31, 1998 were $0.30, $0.26 and $0.06, respectively.
Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for Trust
Shares for the years ended October 31, 2000 and 1999 and the period ended
October 31, 1998 were $0.32, $0.30 and $0.15, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
82-83
<PAGE>
NEW YORK MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RETAIL A SHARES TRUST SHARES
YEARS ENDED OCTOBER 31, YEARS ENDED OCTOBER 31,
--------------------------------------------- ---------------------------------------------
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period... $ 10.57 $ 11.44 $ 11.09 $ 10.75 $ 10.78 $ 10.57 $ 11.44 $ 11.09 $ 10.75 $ 10.78
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (A)........... 0.48 0.48 0.48 0.49 0.48 0.50 0.50 0.50 0.52 0.51
Net realized and unrealized gain
(loss) on investments ............ 0.44 (0.89) 0.35 0.34 (0.03) 0.44 (0.89) 0.35 0.34 (0.03)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total from Investment Operations: 0.92 (0.41) 0.83 0.83 0.45 0.94 (0.39) 0.85 0.86 0.48
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income. (0.50) (0.46) (0.48) (0.49) (0.48) (0.52) (0.48) (0.50) (0.52) (0.51)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Dividends:.................. (0.50) (0.46) (0.48) (0.49) (0.48) (0.52) (0.48) (0.50) 0.52) (0.51)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net
asset value 0.42 (0.87) 0.35 0.34 (0.03) 0.42 (0.87) 0.35 0.34 (0.03)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period......... $ 10.99 $ 10.57 $ 11.44 $ 11.09 $ 10.75 $ 10.99 $ 10.57 $ 11.44 $ 11.09 $ 10.75
======= ======== ======== ======== ======== ======== ======== ======== ======== ========
Total Return(1)........................ 8.93% (3.72)% 7.65% 7.93% 4.31% 9.12% (3.54)% 7.82% 8.17% 4.55%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)...... $ 38,700 $ 41,343 $ 48,218 $ 38,434 $ 40,154 $ 50,511 $ 36,696 $ 34,801 $ 27,562 $ 23,762
Ratios to average net assets:
Net investment income including
reimbursement/waiver ............. 4.47% 4.31% 4.27% 4.52% 4.50% 4.65% 4.50% 4.42% 4.75% 4.75%
Operating expenses including
reimbursement/waiver ............. 0.95% 0.96% 0.87% 0.94% 0.95% 0.78% 0.77% 0.72% 0.71% 0.70%
Operating expenses excluding
reimbursement/waiver ............. 1.17% 1.16% 1.20% 1.26% 1.35% 0.98% 0.97% 0.99% 1.02% 1.10%
Portfolio Turnover Rate................ 37% 24% 27% 61% 12% 37% 24% 27% 61% 12%
</TABLE>
---------------------------------------------
(1) Calculation does not include the effect of any sales charge for Retail A
Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the years ended October 31, 2000, 1999, 1998, 1997 and
1996 were $0.45, $0.46, $0.45, $0.45 and $0.44, respectively. Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for Trust
Shares for the years ended October 31, 2000, 1999, 1998, 1997 and 1996 were
$0.47, $0.48, $0.47, $0.49 and $0.47, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
84-85
<PAGE>
RHODE ISLAND MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RETAIL A SHARES TRUST SHARES BKB SHARES
YEARS ENDED OCTOBER 31, PERIOD ENDED PERIOD ENDED
------------------------------------------------ OCTOBER 31, OCTOBER 31,
2000 1999 1998 1997 1996 2000(1) 2000(1)
-------- -------- -------- -------- -------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........... $ 10.36 $ 11.18 $ 10.91 $ 10.65 $ 10.67 $ 10.53 $ 10.53
-------- -------- -------- -------- -------- ------------ ------------
Income from Investment Operations:
Net investment income (A)................... 0.48(3) 0.48 0.50 0.48 0.51 0.18(3) 0.18(3)
Net realized and unrealized gain (loss)
on investments. .......................... 0.39 (0.77) 0.29 0.32 0.03 0.22 0.22
-------- -------- -------- -------- -------- ------------ ------------
Total from Investment Operations:....... 0.87 (0.29) 0.79 0.80 0.54 0.40 0.40
-------- -------- -------- -------- -------- ------------ ------------
Less Dividends:
Dividends from net investment income........ (0.48) (0.48) (0.50) (0.50) (0.51) (0.18)(3) (0.18)(3)
Dividends from net realized capital gains... - (0.05) (0.02) (0.04) (0.05) -- --
-------- -------- -------- -------- -------- ------------ ------------
Total Dividends:......................... (0.48) (0.53) (0.52) (0.54) (0.56) (0.18) (0.18)
-------- -------- -------- -------- -------- ------------ ------------
Net increase (decrease) in net asset value..... 0.39 (0.82) 0.27 0.26 (0.02) 0.22 0.22
-------- -------- -------- -------- -------- ------------ ------------
Net Asset Value, End of Period................. $ 10.75 $ 10.36 $ 11.18 $ 10.91 $ 10.65 $ 10.75 $ 10.75
======== ======== ======== ======== ======== ============ ============
Total Return (2)............................... 8.65% (2.73)% 7.35% 7.78% 5.22% 3.82%** 3.81%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's).............. $ 26,023 $ 19,833 $ 20,210 $ 17,134 $ 14,900 $ 82,617 $ 10,399
Ratios to average net assets:
Net investment income including
reimbursement/waiver .................. 4.58% 4.41% 4.52% 4.50% 4.78% 4.60%* 4.58%*
Operating expenses including
reimbursement/waiver .................. 0.73% 0.80% 0.81% 0.83% 0.77% 0.71%* 0.73%*
Operating expenses excluding
reimbursement/waiver .................. 1.06% 1.20% 1.23% 1.34% 1.34% 1.04%* 1.06%*
Portfolio Turnover Rate........................ 43% 34% 41% 19% 13% 43%** 43%**
</TABLE>
-----------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund began issuing Trust Shares and BKB Shares on June 19, 2000.
(2) Calculation does not include the effect of any sales charge for Retail A
Shares.
(3) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator fo
Retail A Shares for the years ended October 31, 2000, 1999, 1998, 1997 and
1996 were $0.45, $0.44, $0.45, $0.43 and $0.45, respectively. Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for Trust
Shares for the period ended October 31, 2000 was $0.17. Net investment
income per share before reimbursement/waiver of fees by the Investment
Advisor and/or its affiliates and/or the Administrator for BKB Shares for
the period ended October 31, 2000 was $0.17.
SEE NOTES TO FINANCIAL STATEMENTS.
86-87
<PAGE>
INTERMEDIATE TAX-EXEMPT BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RETAIL A SHARES TRUST SHARES
JUNE 26, 2000 JUNE 1, 2000
THROUGH THROUGH YEARS ENDED MAY 31,
OCTOBER 31, OCTOBER 31, -------------------------------------------------------
2000(1) 2000(2) 2000 1999 1998 1997 1996
----------- ----------- -------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 9.82 $ 9.60 $ 10.33 $ 10.52 $ 10.18 $ 9.99 $ 10.14
----------- ----------- -------- --------- --------- --------- --------
Income from Investment Operations:
Net investment income (A)................. 0.15(4) 0.18(4) 0.44 0.45 0.48 0.50 0.51
Net realized and unrealized gain
(loss) on investments ............... 0.19 0.41 (0.62) (0.01) 0.44 0.19 (0.09)
----------- ----------- -------- --------- --------- --------- --------
Total from Investment Operations:..... 0.34 0.59 (0.18) 0.44 0.92 0.69 0.42
----------- ----------- -------- --------- --------- --------- --------
Less Dividends:
Dividends from net investment income...... (0.15) (0.18) (0.44) (0.45) (0.48) (0.50) (0.51)
Dividends from capital gains.............. -- -- (0.11) (0.18) (0.10) -- (0.06)
----------- ----------- -------- --------- --------- --------- --------
Total Dividends:........................ (0.15) (0.18) (0.55) (0.63) (0.58) (0.50) (0.57)
----------- ----------- -------- --------- --------- --------- --------
Net increase (decrease) in net asset value... 0.19 0.41 (0.73) (0.19) 0.34 0.19 (0.15)
----------- ----------- -------- --------- --------- --------- --------
Net Asset Value, End of Period............... $ 10.01 $ 10.01 $ 9.60 $ 10.33 $ 10.52 $ 10.18 $ 9.99
=========== =========== ======== ========= ========= ========== ========
Total Return(3).............................. 3.24%** 6.18%** (1.70)% 4.24% 9.24% 7.74% 4.31%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)............ $ 1 $ 261,938 $296,711 $ 356,995 $ 303,578 $ 250,526 $196,787
Ratios to average net assets:
Net investment income including
reimbursement/waiver ................ 4.21%* 4.38%* 4.50% 4.31% 4.62% 4.92% 4.90%
Operating expenses including
reimbursement/waiver ................ 0.94%* 0.77%* 0.80% 0.80% 0.80% 0.80% 0.79%
Operating expenses excluding
reimbursement/waiver ................ 1.69%* 0.91%* 1.11% 1.11% 1.12% 1.17% 1.21%
Portfolio Turnover Rate...................... 38%** 38%** 48% 69% 34% 33% 37%
</TABLE>
---------------------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund began offering Retail A Shares on June 26, 2000.
(2) The Fund commenced operations on June 14, 1993 as a separate portfolio (the
"Predecessor Fund") of the Boston 1784 Funds. On June 26, 2000, the
Predecessor Fund was reorganized as a new portfolio of Galaxy. Prior to the
reorganization, the Predecessor Fund offered and sold one series of shares.
In connection with the reorganization, shareholders of the Predecessor Fund
exchanged their shares for Trust Shares and BKB Shares of the Fund.
Shareholders of the Predecessor Fund who purchased their shares through an
investment management, trust, custody or other agency relationship with
BankBoston, N.A. received Trust Shares of the Fund. Shareholders of the
Predecessor Fund who purchased their shares other than through an
investment management, trust, custody or other agency relationship with
BankBoston, N.A. received BKB Shares of the Fund.
(3) Calculation does not include the effect of any sales charge for Retail A
Shares.
(4) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the period ended October 31, 2000 was $0.13(4). Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for Trust
Shares for the period ended October 31, 2000 was $0.18(4). Net investment
income per share before reimbursement/waiver of fees by the Investment
Advisor and/or its affiliates and/or the Administrator for BKB Shares for
the period ended October 31, 2000 was $0.17(4).
SEE NOTES TO FINANCIAL STATEMENTS.
88-89
<PAGE>
INTERMEDIATE TAX-EXEMPT BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
BKB SHARES
JUNE 1, 2000
THROUGH
OCTOBER 31, YEARS ENDED MAY 31,
---------------------------------------------------------
2000(2) 2000 1999 1998 1997 1996
----------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 9.60 $ 10.33 $ 10.52 $ 10.18 $ 9.99 $ 10.14
----------- -------- -------- -------- --------- --------
Income from Investment Operations:
Net investment income (A)................. 0.18(4) 0.44 0.45 0.48 0.50 0.51
Net realized and unrealized gain
(loss) on investments ............... 0.41 (0.62) (0.01) 0.44 0.19 (0.09)
----------- -------- -------- -------- --------- --------
Total from Investment Operations:..... 0.59 (0.18) 0.44 0.92 0.69 0.42
----------- -------- -------- -------- --------- --------
Less Dividends:
Dividends from net investment income...... (0.18) (0.44) (0.45) (0.48) (0.50) (0.51)
Dividends from capital gains.............. -- (0.11) (0.18) (0.10) -- (0.06)
----------- -------- -------- -------- --------- --------
Total Dividends:........................ (0.18) (0.55) (0.63) (0.58) (0.50) (0.57)
----------- -------- -------- -------- --------- --------
Net increase (decrease) in net asset value... 0.41 (0.73) (0.19) 0.34 0.19 (0.15)
----------- -------- -------- -------- --------- --------
Net Asset Value, End of Period............... 10.01 $ 9.60 $ 10.33 $ 10.52 $ 10.18 $ 9.99
=========== ======== ======== ======== ========= ========
Total Return(3).............................. 6.17%** (1.70)% 4.24% 9.24% 7.74% 4.31%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)............ $ 16,721 $296,711 $356,995 $303,578 $ 250,526 $196,787
Ratios to average net assets:
Net investment income including
reimbursement/waiver ................ 4.36%* 4.50% 4.31% 4.62% 4.92% 4.90%
Operating expenses including
reimbursement/waiver ................ 0.79%* 0.80% 0.80% 0.80% 0.80% 0.79%
Operating expenses excluding
reimbursement/waiver ................ 0.96%* 1.11% 1.11% 1.12% 1.17% 1.21%
Portfolio Turnover Rate...................... 38%** 48% 69% 34% 33% 37%
</TABLE>
---------------------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund began offering Retail A Shares on June 26, 2000.
(2) The Fund commenced operations on June 14, 1993 as a separate portfolio (the
"Predecessor Fund") of the Boston 1784 Funds. On June 26, 2000, the
Predecessor Fund was reorganized as a new portfolio of Galaxy. Prior to the
reorganization, the Predecessor Fund offered and sold one series of shares.
In connection with the reorganization, shareholders of the Predecessor Fund
exchanged their shares for Trust Shares and BKB Shares of the Fund.
Shareholders of the Predecessor Fund who purchased their shares through an
investment management, trust, custody or other agency relationship with
BankBoston, N.A. received Trust Shares of the Fund. Shareholders of the
Predecessor Fund who purchased their shares other than through an
investment management, trust, custody or other agency relationship with
BankBoston, N.A. received BKB Shares of the Fund.
(3) Calculation does not include the effect of any sales charge for Retail A
Shares.
(4) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the period ended October 31, 2000 was $0.13(4). Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for Trust
Shares for the period ended October 31, 2000 was $0.18(4). Net investment
income per share before reimbursement/waiver of fees by the Investment
Advisor and/or its affiliates and/or the Administrator for BKB Shares for
the period ended October 31, 2000 was $0.17(4).
SEE NOTES TO FINANCIAL STATEMENTS.
88-89
<PAGE>
INTERMEDIATE TAX-EXEMPT BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RETAIL A SHARES TRUST SHARES
JUNE 26, 2000 JUNE 1, 2000
THROUGH THROUGH YEARS ENDED MAY 31,
OCTOBER 31, OCTOBER 31, -------------------------------------------------------
2000(1) 2000(2) 2000 1999 1998 1997 1996
----------- ----------- -------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 10.22 $ 10.00 $ 10.67 $ 10.81 $ 10.38 $ 10.17 $ 10.27
----------- ----------- -------- --------- --------- --------- --------
Income from Investment Operations:
Net investment income (A)................. 0.15(4) 0.19(4) 0.46 0.48 0.50 0.51 0.53
Net realized and unrealized gain
(loss) on investments ............... 0.19 0.41 (0.62) (0.08) 0.45 0.21 (0.10)
----------- ----------- -------- --------- --------- --------- --------
Total from Investment Operations:..... 0.34 0.60 (0.16) 0.40 0.95 0.72 0.43
Less Dividends: ----------- ----------- -------- --------- --------- --------- --------
Dividends from net investment income...... (0.15) (0.19) (0.46) (0.48) (0.50) (0.51) (0.53)
Dividends from capital gains.............. -- -- (0.05) (0.06) (0.02) -- --
----------- ----------- -------- --------- --------- --------- --------
Total Dividends:........................ (0.15) (0.19) (0.51) (0.54) (0.52) (0.51) (0.53)
----------- ----------- -------- --------- --------- --------- --------
Net increase (decrease) in net asset value... 0.19 0.41 (0.67) (0.14) 0.43 0.21 (0.10)
----------- ----------- -------- --------- --------- --------- --------
Net Asset Value, End of Period............... $ 10.41 $ 10.41 $ 10.00 $ 10.67 $ 10.81 $ 10.38 $ 10.17
=========== ============= ======== ========= ========= ========= ========
Total Return(3).............................. 3.23%** 6.01%* *(1.45)% 3.72% 9.29% 7.26% 4.20%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)............ $ 66 $ 121,974 $148,902 $ 187,725 $ 142,107 $ 103,104 $ 81,441
Ratios to average net assets:
Net investment income including
reimbursement/waiver ................ 4.20%* 4.37%* 4.52% 4.37% 4.66% 4.94% 5.02%
Operating expenses including
reimbursement/waiver ................ 0.95%* 0.78%* 0.80% 0.80% 0.80 0.76% 0.75%
Operating expenses excluding
reimbursement/waiver ................ 1.37%* 0.94%* 1.12% 1.12% 1.14% 1.17% 1.29%
Portfolio Turnover Rate...................... 30%** 30%** 30% 19% 17% 4% 20%
</TABLE>
---------------------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund began offering Retail A Shares on June 26, 2000.
(2) The Fund commenced operations on August 1, 1994 as a separate portfolio
(the "Predecessor Fund") of the Boston 1784 Funds. On June 26, 2000, the
Predecessor Fund was reorganized as a new portfolio of Galaxy. Prior to the
reorganization, the Predecessor Fund offered and sold one series of shares.
In connection with the reorganization, shareholders of the Predecessor Fund
exchanged their shares for Trust Shares and BKB Shares of the Fund.
Shareholders of the Predecessor Fund who purchased their shares through an
investment management, trust, custody, or other agency relationship with
BankBoston, N.A. received Trust Shares of the Fund. Shareholders of the
Predecessor Fund who purchased their shares other than through an
investment management, trust, custody or other agency relationship with
BankBoston, N.A. received BKB Shares of the Fund.
(3) Calculation does not include the effect of any sales charge for Retail A
Shares.
(4) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the period ended October 31, 2000 was $0.14(4). Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Trust Shares for the period ended October 31, 2000 was $0.18(4). Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for BKB
Shares for the period ended October 31, 2000 was $0.18(4).
SEE NOTES TO FINANCIAL STATEMENTS.
90-91
<PAGE>
INTERMEDIATE TAX-EXEMPT BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
BKB SHARES
JUNE 1, 2000
THROUGH
OCTOBER 31, YEARS ENDED MAY 31,
---------------------------------------------------------
2000(2) 2000 1999 1998 1997 1996
----------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 10.00 $ 10.67 $ 10.81 $ 10.38 $ 10.17 $ 10.27
----------- -------- -------- -------- --------- --------
Income from Investment Operations:
Net investment income (A)................. 0.19(4) 0.46 0.48 0.50 0.51 0.53
Net realized and unrealized gain
(loss) on investments ............... 0.41 (0.62) (0.08) 0.45 0.21 (0.10)
----------- -------- -------- -------- --------- --------
Total from Investment Operations:..... 0.60 (0.16) 0.40 0.95 0.72 0.43
Less Dividends: ----------- -------- -------- -------- --------- --------
Dividends from net investment income...... (0.19) (0.46) (0.48) (0.50) (0.51) (0.53)
Dividends from capital gains.............. -- (0.05) (0.06) (0.02) -- --
----------- -------- -------- -------- --------- --------
Total Dividends:........................ (0.19) (0.51) (0.54) (0.52) (0.51) (0.53)
----------- -------- -------- -------- --------- --------
Net increase (decrease) in net asset value...
----------- -------- -------- -------- --------- --------
Net Asset Value, End of Period............... $ 10.41 $ 10.00 $ 10.67 $ 10.81 $ 10.38 $ 10.17
=========== ======== ======== ======== ========= ========
Total Return(3).............................. 6.01%** (1.45)% 3.72% 9.29% 7.26% 4.20%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)............ $ 30,187 $148,902 $ 187,725 $142,107 $ 103,104 $ 81,441
Ratios to average net assets:
Net investment income including
reimbursement/waiver ................ 4.35%* 4.52% 4.37% 4.66% 4.94% 5.02%
Operating expenses including
reimbursement/waiver ................ 0.80%* 0.80% 0.80% 0.80% 0.76% 0.75%
Operating expenses excluding
reimbursement/waiver ................ 0.99%* 1.12% 1.12% 1.14% 1.17% 1.29%
Portfolio Turnover Rate...................... 30%** 30% 19% 17% 4% 20%
</TABLE>
---------------------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund began offering Retail A Shares on June 26, 2000.
(2) The Fund commenced operations on August 1, 1994 as a separate portfolio
(the "Predecessor Fund") of the Boston 1784 Funds. On June 26, 2000, the
Predecessor Fund was reorganized as a new portfolio of Galaxy. Prior to the
reorganization, the Predecessor Fund offered and sold one series of shares.
In connection with the reorganization, shareholders of the Predecessor Fund
exchanged their shares for Trust Shares and BKB Shares of the Fund.
Shareholders of the Predecessor Fund who purchased their shares through an
investment management, trust, custody, or other agency relationship with
BankBoston, N.A. received Trust Shares of the Fund. Shareholders of the
Predecessor Fund who purchased their shares other than through an
investment management, trust, custody or other agency relationship with
BankBoston, N.A. received BKB Shares of the Fund.
(3) Calculation does not include the effect of any sales charge for Retail A
Shares.
(4) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the period ended October 31, 2000 was $0.14(4). Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Trust Shares for the period ended October 31, 2000 was $0.18(4). Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for BKB
Shares for the period ended October 31, 2000 was $0.18(4).
SEE NOTES TO FINANCIAL STATEMENTS.
90-91
<PAGE>
FLORIDA MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
TRUST SHARES
JUNE 1, 2000
THROUGH YEARS ENDED MAY 31, PERIOD ENDED
OCTOBER 31, ---------------------- MAY 31,
2000(1) 2000 1999 1998(2)
------------ ---------- --------- ------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period....................... $ 9.51 $ 10.12 $ 10.30 $ 10.00
------------ ---------- --------- ------------
Income from Investment Operations:
Net investment income (A)............................... 0.17 0.43 0.44 0.43
Net realized and unrealized gain (loss) on investments.. 0.36 (0.61) (0.04) 0.32
------------ ---------- --------- ------------
Total from Investment Operations:................... 0.53 (0.18) 0.40 0.75
------------ ---------- --------- ------------
Less Dividends:
Dividends from net investment income.................... (0.17) (0.43) (0.44) (0.43)
Dividends from capital gains............................ -- -- (0.14) (0.02)
------------ ---------- --------- ------------
Total Dividends:...................................... (0.17) (0.43) (0.58) (0.45)
------------ ---------- --------- ------------
Net increase (decrease) in net asset value................. 0.36 (0.61) (0.18) 0.30
------------ ---------- --------- ------------
Net Asset Value, End of Period............................. $ 9.87 $ 9.51 $ 10.12 $ 10.30
============ ========== ========= ============
Total Return............................................... 5.62%** (1.76)% 3.88% 7.63%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's).......................... $ 61,773 $ 61,154 $ 68,796 $ 51,793
Ratios to average net assets:
Net investment income including reimbursement/waiver.... 4.22%* 4.44% 4.25% 4.59%*
Operating expenses including reimbursement/waiver....... 0.79%* 0.80% 0.80% 0.80%*
Operating expenses excluding reimbursement/waiver....... 1.01%* 1.15% 1.14% 1.19%*
Portfolio Turnover Rate.................................... 23%** 28% 11% 21%
</TABLE>
--------------------------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on June 30, 1997 as a separate portfolio (the
"Predecessor Fund") of the Boston 1784 Funds. On June 26, 2000, the
Predecessor Fund was reorganized as a new portfolio of Galaxy. Prior to the
reorganization, the Predecessor Fund offered and sold one series of shares.
In connection with the reorganization, shareholders of the Predecessor Fund
exchanged their shares for Trust Shares of the Fund.
(2) Period from commencement of operations.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or Administrator for the period ended October 31,
2000 was $0.16.
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE>
MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RETAIL A SHARES TRUST SHARES
JUNE 26, 2000 JUNE 1, 2000
THROUGH THROUGH
OCTOBER 31, OCTOBER 31,
2000(1) 2000(2)
--------------- ------------
<S> <C> <C>
Net Asset Value, Beginning of Period............. $ 10.00 $ 9.78
--------------- ------------
Income from Investment Operations:
Net investment income (A)..................... 0.15(4) 0.18(4)
Net realized and unrealized gain (loss)
on investments .......................... 0.18 0.40
--------------- ------------
Total from Investment Operations:......... 0.33 0.58
--------------- ------------
Less Dividends:
Dividends from net investment income.......... (0.15) (0.18)
--------------- ------------
Total Dividends:............................ (0.15) (0.18)
--------------- ------------
Net increase (decrease) in net asset value....... 0.18 0.40
--------------- ------------
Net Asset Value, End of Period................... $ 10.18 $ 10.18
=============== ============
Total Return(3).................................. 3.36%** 5.99%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's)................ $ 1,345 $ 176,306
Ratios to average net assets:
Net investment income including reimbursement/waiver 4.20%* 4.36%*
Operating expenses including reimbursement/waiver 0.93%* 0.77%*
Operating expenses excluding reimbursement/waiver 1.09%* 0.92%*
Portfolio Turnover Rate.......................... 20%** 20%**
</TABLE>
-------------------------------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund began offering Retail A Shares on June 26, 2000.
(2) The Fund commenced operations on June 14, 1993 as a separate portfolio (the
"Predecessor Fund") of the Boston 1784 Funds. On June 26, 2000, the
Predecessor Fund was reorganized as a new portfolio of Galaxy. Prior to the
reorganization, the Predecessor Fund offered and sold one series of shares.
In connection with the reorganization, shareholders of the Predecessor Fund
exchanged their shares for Trust Shares and BKB Shares of the Fund.
Shareholders of the Predecessor Fund who purchased their shares through an
investment management, trust, custody, or other agency relationship with
BankBoston, N.A. received Trust Shares of the Fund. Shareholders of the
Predecessor Fund who purchased their shares other than through an
investment management, trust, custody or other agency relationship with
BankBoston, N.A. received BKBShares of the Fund.
(3) Calculation does not include the effect of any sales charge for Retail A
Shares.
(4) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the period ended October 31, 2000 was $0.15(4). Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for Trust
Shares for the period ended October 31, 2000 was $0.18(4).
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE>
MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED MAY 31,
----------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period............. $ 10.39 $ 10.42 $ 10.01 $ 9.78 $ 9.90
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (A)..................... 0.45 0.45 0.47 0.47 0.48
Net realized and unrealized gain (loss)
on investments .......................... (0.61) (0.03) 0.41 0.23 (0.12)
-------- -------- -------- -------- --------
Total from Investment Operations:......... (0.16) 0.42 0.88 0.70 0.36
-------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income.......... (0.45) (0.45) (0.47) (0.47) (0.48)
-------- -------- -------- -------- --------
Total Dividends:............................ (0.45) (0.45) (0.47) (0.47) (0.48)
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value....... (0.61) (0.03) 0.41 0.23 (0.12)
-------- -------- -------- -------- --------
Net Asset Value, End of Period................... $ 9.78 $ 10.39 $ 10.42 $ 10.01 $ 9.78
======== ======== ======== ======== ========
Total Return(3).................................. (1.51)% 4.10% 8.91% 7.30% 3.64%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)................ $231,140 $267,871 $206,137 $147,459 $106,619
Ratios to average net assets:
Net investment income including reimbursement/waiver 4.52% 4.32% 4.54% 4.74% 4.73%
Operating expenses including reimbursement/waiver 0.80% 0.80% 0.80% 0.79% 0.80%
Operating expenses excluding reimbursement/waiver 1.12% 1.12% 1.14% 1.18% 1.28%
Portfolio Turnover Rate.......................... 11% 9% 6% 9% 47%
</TABLE>
-------------------------------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund began offering Retail A Shares on June 26, 2000.
(2) The Fund commenced operations on June 14, 1993 as a separate portfolio (the
"Predecessor Fund") of the Boston 1784 Funds. On June 26, 2000, the
Predecessor Fund was reorganized as a new portfolio of Galaxy. Prior to the
reorganization, the Predecessor Fund offered and sold one series of shares.
In connection with the reorganization, shareholders of the Predecessor Fund
exchanged their shares for Trust Shares and BKB Shares of the Fund.
Shareholders of the Predecessor Fund who purchased their shares through an
investment management, trust, custody, or other agency relationship with
BankBoston, N.A. received Trust Shares of the Fund. Shareholders of the
Predecessor Fund who purchased their shares other than through an
investment management, trust, custody or other agency relationship with
BankBoston, N.A. received BKBShares of the Fund.
(3) Calculation does not include the effect of any sales charge for Retail A
Shares.
(4) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for
Retail A Shares for the period ended October 31, 2000 was $0.15(4). Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for Trust
Shares for the period ended October 31, 2000 was $0.18(4).
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE>
MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
BKB SHARES
JUNE 1, 2000 YEARS ENDED MAY 31,
THROUGH -------------------------------------------------
OCTOBER 31, 2000(1) 2000 1999 1998 1997 1996
------------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period..................... $ 9.78 $ 10.39 $ 10.42 $ 10.01 $ 9.78 $ 9.90
------------------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (A)............................. 0.18(2) 0.45 0.45 0.47 0.47 0.48
Net realized and unrealized gain (loss)
on investments.. ................................ 0.40 (0.61) (0.03) 0.41 0.23 (0.12)
------------------- -------- -------- -------- -------- --------
Total from Investment Operations:................. 0.58 (0.16) 0.42 0.88 0.70 0.36
------------------- -------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income.................. (0.18) (0.45) (0.45) (0.47) (0.47) (0.48)
------------------- -------- -------- -------- -------- --------
Total Dividends:.................................... (0.18) (0.45) (0.45) (0.47) (0.47) (0.48)
------------------- -------- -------- -------- -------- --------
Net increase (decrease) in net asset value............... 0.40 (0.61) (0.03) 0.41 0.23 (0.12)
------------------- -------- -------- -------- -------- --------
Net Asset Value, End of Period........................... $ 10.18 $ 9.78 $ 10.39 $ 10.42 $ 10.01 $ 9.78
=================== ======== ======== ======== ======== ========
Total Return............................................. 5.98%** (1.51)% 4.10% 8.91% 7.30% 3.64%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)........................ $ 54,702 $231,140 $267,871 $206,137 $147,459 $106,619
Ratios to average net assets:
Net investment income including reimbursement/waiver.. 4.33%* 4.52% 4.32% 4.54% 4.74% 4.73%
Operating expenses including reimbursement/waiver..... 0.80%* 0.80% 0.80% 0.80% 0.79% 0.80%
Operating expenses excluding reimbursement/waiver..... 1.00%* 1.12% 1.12% 1.14% 1.18% 1.28%
Portfolio Turnover Rate.................................. 20%** 11% 9% 6% 9% 47%
</TABLE>
--------------------------------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on June 14, 1993 as a separate portfolio (the
"Predecessor Fund") of the Boston 1784 Funds. On June 26, 2000, the
Predecessor Fund was reorganized as a new portfolio of Galaxy. Prior to the
reorganization, the Predecessor Fund offered and sold one series of shares.
In connection with the reorganization, shareholders of the Predecessor Fund
exchanged their shares for Trust Shares and BKB Shares of the Fund.
Shareholders of the Predecessor Fund who purchased their shares through an
investment management, trust, custody, or other agency relationship with
BankBoston, N.A. received Trust Shares of the Fund. Shareholders of the
Predecessor Fund who purchased their shares other than through an
investment management, trust, custody or other agency relationship with
BankBoston, N.A. received BKB Shares of the Fund.
(2) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
(A) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or its affiliates and/or the Administrator for BKB
Shares for the period ended October 31, 2000 was $0.17(2).
SEE NOTES TO FINANCIAL STATEMENTS.
94
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
The Galaxy Fund, a Massachusetts business trust (the "Trust"), is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company. As of the date of this report, the Trust offered
thirty-seven managed investment portfolios. The accompanying financial
statements and financial highlights are those of the Tax-Exempt Bond Fund,
Connecticut Municipal Bond Fund, Massachusetts Municipal Bond Fund, New Jersey
Municipal Bond Fund, New York Municipal Bond Fund, Rhode Island Municipal Bond
Fund, Intermediate Tax-Exempt Bond Fund (formerly known as Boston 1784
Tax-Exempt Medium-Term Income Fund), Connecticut Intermediate Municipal Bond
Fund (formerly known as Boston 1784 Connecticut Tax-Exempt Income Fund), Florida
Municipal Bond Fund (formerly known as Boston 1784 Florida Tax-Exempt Income
Fund) and Massachusetts Intermediate Municipal Bond Funds (formerly known as
Boston 1784 Massachusetts Tax-Exempt Income Fund) (individually, a
"Fund",collectively, the "Funds") only.
The Florida Municipal Bond Fund is authorized to issue one series of shares
(referred to herein as "Trust Shares"). The Connecticut Municipal Bond,
Massachusetts Municipal Bond, New Jersey Municipal Bond and New York Municipal
Bond Funds are authorized to issue two series of shares (Trust Shares and Retail
A Shares). The Rhode Island Municipal Bond, Intermediate Tax-Exempt Bond,
Connecticut Intermediate Municipal Bond and Massachusetts Intermediate Municipal
Bond Funds are authorized to issue three series of shares (Trust Shares, Retail
A and BKBShares). The Tax-Exempt Bond Fund is authorized to issue five series of
shares (Trust Shares, Retail A Shares, Retail B Shares, Prime AShares and Prime
B Shares), but is currently offering only Trust Shares, Retail A Shares and
Retail B Shares. Trust Shares, Retail A Shares, Retail B Shares, Prime A Shares,
Prime B Shares and BKB Shares are substantially the same except that (i) Retail
A Shares are subject to a maximum 3.75% front-end sales charge, (ii) Prime A
Shares are subject to a maximum 4.75% front-end sales charge, (iii) Retail B
Shares and Prime B Shares are subject to a maximum 5.00% contingent deferred
sales charge, and (iv) each series of shares bears the following series specific
expenses: distribution fees and/or shareholder servicing fees and transfer
agency charges. Six years after purchase, Retail B Shares will convert
automatically to Retail A Shares and eight years after purchase, Prime B Shares
will convert automatically to Prime A Shares. BKB Shares of the Rhode Island
Municipal Bond Fund, Intermediate Tax-Exempt Bond, Connecticut Intermediate
Municpal Bond and Massachusetts Intermediate Municipal Bond Fund will convert to
Retail A Shares of the same Fund on the first anniversary of the closing of the
reorganization of the Boston 1784 Funds into the Trust provided that prior
thereto the Board of Trustees of the Trust has determined that such conversion
is in the best interest of the holders of such BKB Shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates. The following is a
summary of significant accounting policies in conformity with generally accepted
accounting principles consistently followed by the Funds in the preparation of
their financial statements.
PORTFOLIO VALUATION: Investment securities are valued by an independent
pricing service approved by the Trust's Board of Trustees. When, in the judgment
of the service, quoted bid prices are readily available and are representative
of the bid side of the market, investments are valued at the mean between quoted
bid prices and asked prices. Other investments are carried at fair value as
determined by the service based on methods which include consideration of yields
or prices of bonds of comparable quality, coupon maturity and type; indications
as to values from dealers; and general market conditions. Short-term obligations
that mature in 60 days or less are valued at amortized cost, which approximates
fair value. The securities of other registered investment companies are valued
at the net asset value of the securities. All other securities and other assets
are appraised at their fair value as determined in good faith under consistently
applied procedures established by and under the general supervision of the Board
of Trustees.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
accounted for on a trade date basis. Net realized gains or losses on sales of
securities are determined by the identified cost method. Interest and dividend
income is recorded on the accrual basis. Investment income and realized and
unrealized gains and losses are allocated to the separate series of a Fund based
upon the relative net assets of each series.
DIVIDENDS TO SHAREHOLDERS: Dividends from net investment income are
determined separately for each series and are declared daily and paid monthly.
Net realized capital gains, if any, are distributed at least annually.
Income dividends and capital gain dividends are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles.
FEDERAL INCOME TAXES: The Trust treats each Fund as a separate entity for
federal income tax purposes. Each Fund intends to qualify each year as a
"regulated investment company" under Subchapter M of the Internal Revenue Code.
By so qualifying, each
95
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Fund will not be subject to federal income taxes to the extent that it
distributes substantially all of its taxable or tax-exempt income, if any, for
its tax period ending October 31. In addition, by distributing in each calendar
year substantially all of its net investment income, capital gains and certain
other amounts, if any, each Fund will not be subject to a federal excise tax.
Therefore, no federal income or excise tax provision is recorded.
EXPENSES: The Trust accounts separately for the assets, liabilities and
operations of each Fund. Expenses directly attributable to a Fund are charged to
the Fund, while expenses which are attributable to more than one fund of the
Trust are allocated among the respective funds.
In addition, expenses of a Fund not directly attributable to the operations
of a particular series of shares of the Fund are allocated to the separate
series based upon the relative net assets of each series. Operating expenses
directly attributable to a series of shares of a Fund are charged to the
operations of that series.
ORGANIZATION COSTS: The New Jersey Municipal Bond Fund bears all costs in
connection with its organization, including the fees and expenses of registering
and qualifying its initial shares for distribution under federal and state
securities laws. All such costs are amortized using the straight-line method
over a period of five years beginning with the commencement of the Fund's
operations. In the event that any of the initial shares purchased by the Fund's
sponsor are redeemed during such period by any holder thereof, the Fund will be
reimbursed by such holder for any unamortized organization costs in the same
proportion as the number of initial shares being redeemed bears to the number of
initial shares outstanding at the time of redemption.
WHEN-ISSUED SECURITIES: Each Fund may purchase and sell securities, such as
municipal obligations, on a "when-issued" basis. Delivery of the security and
payment take place after the date of the commitment to purchase and such
securities are subject to market fluctuations during this period. The fair value
of these securities is determined in the same manner as other municipal
obligations. The Trust's custodian will set aside cash or liquid portfolio
securities equal to the amount of the when-issued commitment in a separate
account.
3. INVESTMENT ADVISORY, ADMINISTRATION, DISTRIBUTION
SHAREHOLDER SERVICES AND OTHER FEES
The Trust and Fleet Investment Advisors Inc. (the "Investment Advisor" or
"Fleet"), an indirect wholly-owned subsidiary of FleetBoston Financial
Corporation, are parties to an investment advisory agreement under which the
Investment Advisor provides services for a fee, computed daily and paid monthly,
at the annual rate of 0.75% of the average daily net assets of each Fund (See
Note 4).
Prior to June 26, 2000, Fleet National Bank (formerly known as BankBoston,
N.A.)("FNB"), an affiliate of the Investment Advisor, provided investment
advisory services to the Boston 1784 Tax-Exempt Medium-Term Income Fund, Boston
1784 Connecticut Tax-Exempt Income Fund, Boston 1784 Florida Tax-Exempt Income
Fund and Boston 1784 Massachusetts Tax-Exempt Income Fund, predecessor funds of
the Galaxy Intermediate Tax-Exempt Bond Fund, Galaxy Connecticut Intermediate
Municipal Bond Fund, Galaxy Florida Municipal Bond Fund and Galaxy Massachusetts
Intermediate Municipal Bond Fund, respectively (collectively, the "Predecessor
Funds", see Note 10). FNB was paid a fee for its services at the annual rate of
0.74% of each Predecessor Fund's average daily net assets. For the period June
1, 2000 through June 25, 2000, the fees paid to FNB by the Predecessor Funds and
the fees waived by FNB, which are included in the investment advisory fees and
the reimbursement/waivers, respectively, on the Statement of Operations for the
period June 1, 2000 through October 31, 2000 are as follows:
INVESTMENT INVESTMENT
FUND ADVISORY FEE ADVISORY FEE WAIVER
---- ------------ -------------------
Intermediate Tax-Exempt Bond .............. $150,942 $13,679
Connecticut Intermediate Municipal Bond ... 75,905 8,160
Florida Municipal Bond .................... 31,665 4,371
Massachusetts Intermediate Municipal Bond . 118,181 12,117
The Trust and PFPC Inc. (formerly known as First Data Investor Services
Group, Inc.), a member of PNC Financial Services Group (formerly known as PNC
Bank Corp.), are parties to an administration agreement under which PFPCInc.
(the "Administrator") provides services for a fee, computed daily and paid
monthly, at the annual rate of 0.09% of the first $2.5 billion of the combined
average daily net assets of the Funds and the other funds offered by the Trust
(whose financial statements are provided in separate reports), 0.085% of the
next $2.5 billion of combined average daily net assets, 0.075% of the next $7
billion of combined average daily net assets, 0.065% of the next $3 billion of
combined average daily net assets, 0.06% of the next $3 billion of combined
average daily net assets, 0.0575% of the next $3 billion of combined average
daily net assets and 0.0525% of the combined average daily net assets in excess
of $21 billion. Prior to December 1, 1999, the services described above were
provided by First Data Investor Services Group, Inc., a wholly-owned subsidiary
of First Data Corp. On that date, PFPC Trust Co., a wholly owned subsidiary of
PNC Bank Corp., acquired all of the outstanding stock of First Data Investor
Services Group, Inc. As part of that transaction, PFPC Inc., also an indirect
wholly-owned subsidiary of PNC Bank Corp., was merged into First Data Investor
Services Group, Inc., which then changed its name to PFPC Inc.
In addition, PFPC Inc. also provides certain fund accounting, custody,
administration and transfer agency services in accordance with certain fee
arrangements. Pursuant to such fee arrangements, PFPC Inc. compensates The Chase
Manhattan Bank, the Trust's custodian bank, for its services.
96
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Prior to June 26, 2000, SEI Investments Mutual Funds Services ("SEI"), a
wholly-owned subsidiary of SEI Investments Company, provided certain
administrative services to the Predecessor Funds. The fees paid to SEI were
based on the level of average aggregate net assets of the Boston 1784 Funds. For
the period ended October 31, 2000, the fees paid to SEI by the Predecessor
Funds, which are included in the administration fees on the Statement of
Operations for the period June 1, 2000 through October 31, 2000, were as
follows:
FUND ADMINISTRATION FEE
---- ------------------
Intermediate Tax-Exempt Bond .............. $13,335
Connecticut Intermediate Municipal Bond ... 6,706
Florida Municipal Bond .................... 2,797
Massachusetts Intermediate Municipal Bond . 10,441
Provident Distributors, Inc. (the "Distributor"), serves as the exclusive
distributor of the Trust's shares. Prior to December 1, 1999, First Data
Distributors, Inc., a wholly-owned subsidiary of First Data Investor Services
Group, Inc., acted as the exclusive distributor of the Trust's shares.
Prior to June 26, 2000, SEI Investments Distribution Co. (the "Boston 1784
Distributor") served as the exclusive distributor of shares of the Predecessor
Funds. The Predecessor Funds had adopted a Distribution Plan (the "Boston 1784
Plan") which allowed each Predecessor Fund to use up to 0.25% of its average
daily net assets for the sale and distribution of its shares. At the time of the
reorganization of the Predecessor Funds into the Trust, the Boston 1784
Distributor was waiving all fees payable under the Boston 1784 Plan.
The Trust has adopted a shareholder services plan (the "Services Plan")
with respect to Retail A Shares and Trust Shares of the Funds. Currently, the
Services Plan has not been implemented with respect to the Funds' Trust Shares.
The Services Plan provides compensation to institutions (including and currently
limited to Fleet Bank and its affiliates) which provide shareholder liaison
and/or administrative support services to their customers who beneficially own
Retail A Shares at an aggregate annual rate not to exceed 0.30% of the average
daily net asset value of the outstanding Retail A Shares of each Fund
beneficially owned by such customers. The Trust, under the direction of the
Board of Trustees, is currently limiting fees payable under the Services Plan
with respect to each Fund to an aggregate annual rate not to exceed 0.15% of the
average daily net asset value of the outstanding Retail A Shares beneficially
owned by such customers. No fees were charged under the Services Plan with
respect to the Rhode Island Municipal Bond Fund for the year ended October 31,
2000.
The Trust has adopted a distribution and services plan (the "12b-1 Plan")
with respect to Retail B Shares of the Tax-Exempt Bond Fund. Under the 12b-1
Plan, the Trust may pay (i) the Distributor or another person for expenses and
activities primarily intended to result in the sale of Retail B Shares, (ii)
institutions for shareholder liaison services and (iii) institutions for
administrative support services. Currently, payments under the 12b-1 Plan for
distribution services are being made solely to broker-dealer affiliates of Fleet
Bank and payments under the 12b-1 Plan for shareholder liaison and shareholder
administrative support services are being made solely to Fleet Bank and its
affilitates. Payments for distribution expenses may not exceed an annual rate of
0.65% of the average daily net assets attributable to each of the Fund's
outstanding Retail B Shares. The fees for shareholder liaison services and/or
administrative support services may not exceed the annual rates of 0.15% and
0.15%, respectively, of the average daily net assets attributable to the Fund's
outstanding Retail B Shares owned of record or beneficially by customers of
institutions. The Trust, under the direction of the Board of Trustees, is
currently limiting each Fund's payments for shareholder liaison and
administrative support services under the 12b-1 Plan to an aggregate fee of not
more than 0.15% of the average daily net asset value of Retail B Shares owned of
record or beneficially by customers of institutions. For the year or period
ended October 31, 2000, the Funds paid fees under the Services Plan and 12b-1
Plan as follows:
SERVICES 12B-1 PLAN
FUND PLAN SERVICES DISTRIBUTION
---- -------- -------- ------------
Tax-Exempt Bond ................. $31,350 $ 4,610 $21,561
New Jersey Municipal Bond ....... 1,054 N/A N/A
New York Municipal Bond ......... 58,189 N/A N/A
Connecticut Municipal Bond ...... 36,001 N/A N/A
Massachusetts Municipal Bond .... 46,003 N/A N/A
Intermediate Tax-Exempt Bond .... 1 N/A N/A
Connecticut Intermediate
Municipal Bond ............ 16 N/A N/A
Massachusetts Intermediate
Municipal Bond ............ 362 N/A N/A
The Trust has adopted a distribution plan (the "Prime A Shares Plan") with
respect to Prime A Shares of the Tax-Exempt Bond Fund. Under the Prime A Shares
Plan, the Trust may pay the Distributor or another person for expenses and
activities primarily intended to result in the sale of Prime A Shares. Payments
by the Trust under the Prime A Shares Plan may not exceed the annual rate of
0.30% of the average daily net assets attributable to each Fund's outstanding
Prime A Shares. The Trust, under the direction of the Board of Trustees, intends
to limit the Fund's payments under the Prime A Shares Plan to an annual rate of
not more than 0.25% of the average daily net assets of the Fund's outstanding
Prime A Shares.
The Trust has adopted a distribution and services plan (the "Prime B Shares
Plan") with respect to Prime B Shares of the Tax-Exempt Bond Fund. Under the
Prime B Shares Plan, the Trust may pay (i) the Distributor or another person for
expenses and activities primarily intended to result in the sale of Prime B
Shares, (ii) institutions for shareholder liaison services, and (iii)
institutions for administrative support services. Payments for distribution
expenses may not exceed an annual rate of 0.75% of the average daily net assets
attributable to the Fund's outstanding Prime B Shares. The fees for shareholder
liaison services and/or administrative support services may not exceed the
annual rates of 0.25% and 0.25%, respectively, of the average daily net assets
97
<PAGE>
NOTES TO FINANCIAL STATEMENTS
attributable to each Fund's outstanding Prime B Shares owned of record or
beneficially by customers of institutions. The Trust, under the direction of the
Board of Trustees, intends to limit the Fund's payments for shareholder liaison
and administrative support services under the Prime B Shares Plan to an
aggregate fee of not more than 0.25% of the average daily net assets of Prime B
Shares owned of record or beneficially by customers of institutions. As of
October 31, 2000, the Tax-Exempt Bond Fund had not commenced its offering of
Prime A Shares and Prime B Shares.
The Trust has adopted a shareholder services plan (the "BKB Plan") with
respect to BKB Shares of the Rhode Island Municipal Bond, Intermediate
Tax-Exempt Bond, Connecticut Intermediate Municipal Bond and Massachusetts
Intermediate Municipal Bond Funds. The BKB Plan provides compensation to
institutions (including Fleet Bank and its affiliates) which provide shareholder
liaison and/or administrative support services to their customers who
beneficially own BKB Shares at an aggregate annual rate not to exceed 0.30% of
the average daily net asset value of the outstanding BKB Shares of each Fund
beneficially owned by such customers. The Trust, under the direction of the
Board of Trustees, is currently limiting fees payable under the BKB Plan with
respect to each Fund to an aggregate annual rate not to exceed 0.15% of the
average daily net asset value of the outstanding BKB Shares beneficially owned
by such customers. For the year or period ended October 31, 2000, payments have
been made under the BKB Plan as follows:
BKB
FUND PLAN
---- -------
Rhode Island Municipal Bond ..... $ --
Intermediate Tax-Exempt Bond .... 3,083
Connecticut Intermediate
Municipal Bond ............. 4,469
Massachusetts Intermediate
Municipal Bond ............. 12,263
Retail A Shares, Retail B Shares, Trust Shares, Prime A Shares, Prime B
Shares and BKB Shares of the Funds each bear series specific transfer agent
charges based upon the number of shareholder accounts for each series. For the
year ended October 31, 2000, transfer agent charges for each series (other than
Prime A Shares and Prime B Shares, which had not been issued prior to the date
of the report) were as follows:
FUND RETAIL A RETAIL B TRUST BKB
---- -------- -------- ------ ------
Tax-Exempt Bond ................ $ 10,257 $ 1,799 $1,005 N/A
Connecticut Municipal Bond ..... 11,354 N/A 6 N/A
Massachusetts Municipal Bond ... 9,110 N/A 4 N/A
New Jersey Municipal Bond ...... 2,978 N/A 1,953 N/A
New York Municipal Bond ........ 20,829 N/A 513 N/A
Rhode Island Municipal Bond .... 5,552 N/A 135 $ 986
Intermediate Tax-Exempt Bond ... 52 N/A 20 2,077
Connecticut Intermediate
Municipal Bond ................. 30 N/A 159 2,137
Florida Municipal Bond ......... N/A N/A 1,761 N/A
Massachusetts Intermediate
Municipal Bond ................. 146 N/A 67 5,695
Certain officers of the Trust are officers of the Investment Advisor or
PFPC Inc. Such officers receive no compensation from the Trust for serving in
their respective roles. Effective September 8, 2000, each Trustee is entitled to
receive for services as a Trustee of the Trust, The Galaxy VIP Fund ("VIP") and
Galaxy Fund II ("Galaxy II") an aggregate fee of $54,000 per annum plus certain
other fees for attending or participating in meetings as well as reimbursement
for expenses incurred in attending meetings. For the period May 28, 1999 until
September 7, 2000, each Trustee was entitled to receive for services as a
Trustee of the Trust, VIP and Galaxy II an aggregate fee of $45,000 per annum
plus certain other fees for attending or participating in meetings as well as
reimbursement for expenses incurred in attending meetings. Prior to May 28,
1999, each Trustee was entitled to receive for services as a Trustee of the
Trust, VIP and Galaxy II an aggregate fee of $40,000 per annum plus certain
other fees for attending or participating in meetings as well as reimbursement
for expenses incurred in attending meetings. The Chairman of the Board of
Trustees and the President and Treasurer of the Trust, VIP and Galaxy II are
also entitled to additional fees for their services in these capacities. These
fees are allocated among the funds of the Trust, VIP and Galaxy II based on
their relative net assets.
Each Trustee is eligible to participate in The Galaxy Fund/The Galaxy VIP
Fund/Galaxy Fund II Deferred Compensation Plan (the "Plan"), an unfunded,
non-qualified deferred compensation plan. The Plan allows each trustee to defer
receipt of all or a percentage of fees which otherwise would be payable for
services performed.
Expenses for the year ended October 31, 2000 include legal fees paid to
Drinker Biddle & Reath LLP. A partner of that firm is Secretary to the Trust.
4. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES
The Investment Advisor and/or its affiliates and/or the Administrator
voluntarily agreed to waive a portion of their fees and/or reimburse the Funds
for certain expenses so that total expenses would not exceed certain expense
limitations established for each Fund. The respective parties, at their
discretion, may revise or discontinue the voluntary fee waivers and/or expense
reimbursements at any time. For the year ended October 31, 2000, the Investment
Advisor and/or its affiliates and/or the Administrator waived fees and/or
reimbursed expenses with respect to the Funds as follows:
EXPENSES
FUND FEES WAIVED REIMBURSED
-------- ----------- ----------
Tax-Exempt Bond................ $ 377,253 $ --
Connecticut Municipal Bond..... 181,582 --
Massachusetts Municipal Bond... 301,867 --
New Jersey Municipal Bond...... 80,334 --
New York Municipal Bond........ 174,535 10,484
Intermediate Tax-Exempt Bond... 139,804 30,405
98
<PAGE>
Notes to Financial Statements
EXPENSES
FUND FEES WAIVED REIMBURSED
-------- ----------- ----------
Rhode Island Municipal Bond.... $ 189,644 $ --
Connecticut Intermediate
Municipal Bond............. 78,396 25,723
Florida Municipal Bond......... 43,659 11,002
Massachusetts Intermediate
Municipal Bond............. 124,314 32,778
5. SHARES OF BENEFICIAL INTEREST
The Trust's Declaration of Trust authorizes the Trustees to issue an
unlimited number of shares of beneficial interest, each with a par value of
$0.001. Shares of the Trust are currently classified into forty-three classes of
shares, each consisting of one or more series.
Each share represents an equal proportionate interest in the respective
Fund, bears the same fees and expenses (except that Retail A Shares of a Fund
bear the expense of payments under the Services Plan, Retail B Shares of a Fund
bear the expense of payments under the 12b-1 Plan, Prime A Shares of a Fund bear
the expense of payments under the Prime A Shares Plan, Prime B Shares of a Fund
bear the expense of payments under the Prime B Shares Plan, BKB Shares of a Fund
bear the expense of payments under the BKB Plan and Trust Shares, Retail A
Shares, Retail B Shares, Prime A Shares, Prime B Shares and BKB Shares of a Fund
each bear series specific transfer agent charges) and is entitled to such
dividends and distributions of income earned as are declared at the discretion
of the Trust's Board of Trustees.
Shareholders are entitled to one vote for each full share held and a
proportionate fractional vote for each fractional share held, and will vote in
the aggregate and not by class or series, except as otherwise expressly required
by law or when the Board of Trustees determines that the matter to be voted on
affects only the interests of shareholders of a particular class or series.
6. PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of securities, other than
short-term investments, for the year ended October 31, 2000 were as follows
FUND PURCHASE SALES
---- ------------ ------------
Tax-Exempt Bond ............................ $161,558,499 $131,697,514
Connecticut Municipal Bond ................. 17,504,218 14,186,873
Massachusetts Municipal Bond ............... 25,764,496 24,568,443
New Jersey Municipal Bond .................. 9,811,894 7,289,875
New York Municipal Bond .................... 35,841,507 30,710,601
Rhode Island Municipal Bond ................ 31,099,421 24,394,356
Intermediate Tax-Exempt Bond* .............. 88,024,512 105,517,579
Connecticut Intermediate Municipal Bond* ... 42,700,461 36,961,270
Florida Municipal Bond* .................... 11,170,165 15,352,532
Massachusetts Intermediate Municipal Bond* . 37,799,102 39,752,150
* For the period of 6/1/00 through 10/31/00.
The aggregate gross unrealized appreciation and depreciation, net
unrealized appreciation (depreciation), and cost for all securities as computed
on a federal income tax basis at October 31, 2000 for each Fund is as follows:
FUND APPRECIATION (DEPRECIATION)
---- ------------ --------------
Tax-Exempt Bond ........................... $ 3,361,715 $ (1,002,252)
Connecticut Municipal Bond ................ 1,100,911 (301,258)
Massachusetts Municipal Bond .............. 1,240,406 (787,182)
New Jersey Municipal Bond ................. 127,615 (56,887)
New York Municipal Bond ................... 1,995,253 (635,560)
Rhode Island Municipal Bond ............... 2,284,351 (1,069,636)
Intermediate Tax-Exempt Bond .............. 6,037,630 (816,428)
Connecticut Intermediate Municipal Bond ... 3,121,292 (1,193,577)
Florida Municipal Bond .................... 814,929 (326,542)
Massachusetts Intermediate Municipal Bond . 3,926,510 (1,942,089)
FUND NET COST
---- ----------- ------------
Tax-Exempt Bond ............................ $ 2,359,463 $198,093,618
Connecticut Municipal Bond ................. 799,653 47,314,087
Massachusetts Municipal Bond ............... 453,224 76,754,055
New Jersey Municipal Bond .................. 70,728 11,032,863
New York Municipal Bond .................... 1,359,693 86,788,794
Rhode Island Municipal Bond ................ 1,214,715 116,650,290
Intermediate Tax-Exempt Bond ............... 5,221,202 277,109,867
Connecticut Intermediate Municipal Bond .... 1,927,715 148,521,311
Florida Municipal Bond ..................... 488,387 60,676,181
Massachusetts Intermediate Municipal Bond .. 1,984,421 227,272,958
7. CONCENTRATION OF CREDIT
The Connecticut Municipal Bond and Connecticut Intermediate Municipal Bond
Funds, Massachusetts Municipal Bond and Massachusetts Intermediate Municipal
Bond Funds, New Jersey Municipal Bond Fund, New York Municipal Bond Fund, Rhode
Island Municipal Bond Fund and Florida Municipal Bond Fund invest primarily in
debt obligations issued by the State of Connecticut, the Commonwealth of
Massachusetts, the State of New Jersey, the State of New York, the State of
Rhode Island and the State of Florida, respectively, and their respective
political subdivisions, agencies and public authorities to obtain funds for
various public purposes. The Funds, as non-diversified investment portfolios,
are more susceptible to economic and political factors adversely affecting
issuers of each respective state's specific municipal securities than are
municipal bond funds that are not concentrated in these issuers to the same
extent
8. LINE OF CREDIT
Each Fund and other affiliated funds participate in a $150 million
unsecured line of credit pursuant to a credit agreement. Borrowings may be made
under the credit agreement only for temporary or emergency purposes, such as
repurchase or redemption of shares of the Funds. Interest is charged to each
Fund based on its borrowings. In addition, a commitment fee based on the average
daily unused portion of the line of credit is computed daily and paid quarterly
at an annual rate of 0.10%, and allocated among the Funds based on average daily
net assets. For the year ended October 31, 2000, no borrowings have been made by
the Funds against the line of credit.
99
<PAGE>
NOTES TO FINANCIAL STATEMENTS
9. ACQUISITION OF BOSTON 1784 FUNDS
At a meeting held on January 25, 2000, the Board of Trustees of the Trust
approved an Agreement and Plan of Reorganization (the "Agreement") providing for
the acquisition of the Boston 1784 Funds by the Trust. Pursuant to the
Agreement, (i) all of the assets and liabilities of the Boston 1784 Rhode Island
Tax-Exempt Income Fund were transferred to the Galaxy Rhode Island Municipal
Bond Fund in exchange for 7,472,341 Trust Shares and 1,152,977 BKB Shares of the
Galaxy Rhode Island Municipal Bond Fund, (ii) all of the assets and liabilities
of the Boston 1784 Tax-Exempt Medium-Term Income Fund were transferred to the
Galaxy Intermediate Tax-Exempt Bond Fund in exchange for 27,580,006 TrustShares
and 2,614,820 BKB Shares of the Galaxy Intermediate Tax-Exempt Bond Fund, (iii)
all of the assets and liabilities of the Boston 1784 Connecticut Tax-Exempt
Income Fund were transferred to the Galaxy Connecticut Intermediate Municipal
Bond Fund in exchange for 11,516,932 Trust Shares and 3,234,384 BKB Shares of
the Galaxy Connecticut Intermediate Municipal Bond Fund, (iv) all of the assets
and liabilities of the Boston 1784 Florida Tax-Exempt Income Fund were
transferred to the Galaxy Florida Municipal Bond Fund in exchange for 6,494,015
shares of the Galaxy Florida Municipal Bond Fund, and (v) all of the assets and
liabilities of the Boston 1784 Massachusetts Tax-Exempt Income Fund were
transferred to the Galaxy Massachusetts Intermediate Municipal Bond Fund in
exchange for 17,448,642 TrustShares and 5,967,053 BKB Shares of the Galaxy
Massachusetts Intermediate Municipal Bond Fund. In related transacations, the
assets and liabilities of the other Boston 1784 Funds were transferred to
corresponding Galaxy portfolios. The acquisition, which qualified as a tax-free
reorganization for federal income tax purpose, was completed on June 26, 2000,
following the approval of the reorganization by Boston 1784 Fund shareholders.
The Galaxy Intermediate Tax-Exempt Bond, Galaxy Connecticut Intermediate
Municipal Bond, Galaxy Florida Municipal Bond and Galaxy Massachusetts
Intermediate Municipal had nominal assets and liabilities prior to the
reorganization and were organized solely to acquire the assets and continue the
business, including carrying forward the financial and performance histories of
the Boston 1784 Tax-Exempt Medium-Term Income Fund, Boston 1784 Connecticut
Tax-Exempt Income Fund, Boston 1784 Florida Tax-Exempt Income Fund and Boston
1784 Massachusetts Tax-Exempt Income Fund, respectively. Following the
reorganization, the Galaxy Intermediate Tax-Exempt Bond Fund, Galaxy Connecticut
Intermediate Municipal Bond Fund, Galaxy Florida Municipal Bond Fund and Galaxy
Massachusetts Intermediate Municipal Bond Fund changed their fiscal year from
May 31 to October 31. The following is a summary of the Net Assets, Shares
Outstanding, Net Asset Value per share and Unrealized Depreciation associated
with the acquisition of the Boston 1784 Rhode Island Tax-Exempt Income Fund by
the Galaxy Rhode Island Municipal Bond Fund:
BEFORE AFTER
ACQUISITION ACQUISITION
--------------------------- ------------
GALAXY BOSTON 1784 GALAXY
RHODE ISLAND RHODE ISLAND RHODE ISLAND
MUNICIPAL TAX-EXEMPT MUNICIPAL
BOND FUND INCOME FUND BOND FUND
------------ ------------ ------------
Net Assets ....................... $ 24,798,712 $ 90,824,977 $115,623,689
Shares Outstanding ............... 2,355,069 9,057,917 10,980,387
Net Asset Value, per share ....... $ 10.53 $ 10.03 $ --
Trust Net Asset Value, per share . $ -- $ -- $ 10.53
BKBNet Asset Value, per share .... $ -- $ -- $ 10.53
Unrealized Depreciation .......... $ (16,888) $ (1,371,970) $ (1,388,858)
100
<PAGE>
NOTES TO FINANCIAL STATEMENTS
10. CAPITAL LOSS CARRYFORWARD
At October 31, 2000, the following Funds had capital loss carryforwards:
FUND AMOUNT EXPIRATION
---- ---------- ----------
Tax-Exempt Bond ........................... $ 78,657 2007
682,124 2008
Connecticut Municipal Bond ................ 31,295 2002
685,391 2003
82,263 2005
23,141 2007
291,686 2008
Massachusetts Municipal Bond .............. 286,989 2003
65,783 2007
1,004,595 2008
New Jersey Municipal Bond ................. 687 2006
44,349 2007
148,987 2008
New York Municipal Bond ................... 263,502 2003
16,589 2004
468,405 2008
Rhode Island Municipal Bond ............... 1,395,225 2007
208,872 2008
Intermediate Tax-Exempt Bond .............. 2,337,174 2007
5,245,026 2008
Connecticut Intermediate Municipal Bond ... 2,498,045 2008
Florida Municipal Bond .................... 1,290,043 2008
Massachusetts Intermediate Municipal Bond . 74,231 2004
52,756 2007
2,303,749 2008
The availability of a certain portion of these capital loss carryforwards,
which were acquired on June 19, 2000 or June 26, 2000 in connection with the
Boston 1784 Funds reorganization, may be limited in a given year.
11. TAX INFORMATION (UNAUDITED)
During the fiscal year ended October 31, 2000, the Funds earned the
following percent of their income from municipal obligations which generally
qualify as exempt from federal and state taxation:
FUND INCOME
---- ------
Tax-Exempt Bond .............................. 100.00%
Connecticut Municipal Bond ................... 100.00%
Massachusetts Municipal Bond ................. 100.00%
New Jersey Municipal Bond .................... 100.00%
New York Municipal Bond ...................... 100.00%
Rhode Island Municipal Bond .................. 100.00%
Intermediate Tax-Exempt Bond ................. 100.00%
Connecticut Intermediate Municipal Bond ...... 100.00%
Florida Municipal Bond ....................... 100.00%
Massachusetts Intermediate Municipal Bond .... 100.00%
101
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees of
The Galaxy Fund:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of the Galaxy Tax-Exempt Bond Fund, Galaxy
Connecticut Municipal Bond Fund, Galaxy Massachusetts Municipal Bond Fund,
Galaxy New Jersey Municipal Bond Fund, Galaxy New York Municipal Bond Fund,
Galaxy Rhode Island Municipal Bond Fund (collectively the "Existing Galaxy
Funds") and the Galaxy Intermediate Tax-Exempt Bond Fund, Galaxy Connecticut
Intermediate Municipal Bond Fund, Galaxy Florida Municipal Bond Fund and Galaxy
Massachusetts Intermediate Municipal Bond Fund (collectively, the "Boston 1784
Funds")(ten of the portfolios constituting The Galaxy Fund) as of October 31,
2000, and for the Existing Galaxy Funds the related statements of operations for
the year then ended, the statements of changes in net assets and financial
highlights for each of the two years in the period then ended, and for the
Boston 1784 Funds the statements of operations, statements of changes in net
assets and financial highlights for the period June 1, 2000 to October 31, 2000.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The financial
highlights for the three years ended October 31, 1998 for the Existing Galaxy
Funds were audited by other auditors whose report dated December 23, 1998,
expressed an unqualified opinion on those financial highlights. The statements
of operations for the year ended May 31, 2000, 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 for the Boston
1784 Funds were audited by other auditors whose report dated July 17, 2000
expressed an unqualified opinion on those statements and financial highlights.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. 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
financial statements and financial highlights. Our procedures included
confirmation of securities owned as of October 31, 2000 by correspondence with
the custodian and brokers or other appropriate auditing procedures where replies
from brokers were not received. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Galaxy Tax-Exempt Bond Fund, Galaxy Connecticut Municipal Bond Fund, Galaxy
Massachusetts Municipal Bond Fund, Galaxy New Jersey Municipal Bond Fund, Galaxy
New York Municipal Bond Fund, Galaxy Rhode Island Municipal Bond Fund, Galaxy
Intermediate Tax-Exempt Bond Fund, Galaxy Connecticut Intermediate Municipal
Bond Fund, Galaxy Florida Municipal Bond Fund and Galaxy Massachusetts
Intermediate Municipal Bond Fund portfolios of The Galaxy Fund at October 31,
2000, the results of their operations, changes in their net assets and the
financial highlights for each of the periods indicated above, in conformity with
accounting principles generally accepted in the United States.
/S/SIGNATURE ERNST & YOUNG LLP
Boston, Massachusetts
December 15, 2000
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[GRAPHIC OMITTED: GALAXY LOGO]
GALAXY
FUNDS
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------------------------
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------------------------
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