<PAGE>
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
ANNUAL REPORT
- --------------------------------------------------------------------------------
June 28, 1995
Dear Shareholder:
We are pleased to present to you the Annual Report for the ABT Florida High
Income Municipal Bond Fund. Included with this report is a list of portfolio
holdings along with audited financial statements for the period ended April 30,
1995.
During the twelve months ended April 30, 1995, the Lehman Brothers
Municipal Bond Index returned 9.39%. The Fund's annualized return for the same
period was 7.78%.
Several factors contributed to our performance results for the period.
Most important was the Fund's continued emphasis on income-producing securities.
In a rising interest rate and falling bond price environment, such as we had in
1994, it is extremely beneficial to a portfolio for its income level to provide
an offset to the capital losses incurred by falling prices.
Also contributing to the Fund's performance during the last year was its
large holdings of lower-rated securities. A strengthening economy caused
portfolio credits to generally improve debt repayment coverages and in fact
several holdings received rating agency upgrades including Palm Beach Health
facilities - Good Samaritan Hospital and Polk Industrial Development revenue -
IMC Globel Inc.
Finally, a significant reduction in the number of high yield issues in
Florida has caused prices to improve on portfolio holdings. This should
continue to be the case for some time and will cause prices of high yield
securities to remain firm.
Thank you for your continued support of the ABT Florida High Income
Municipal Bond Fund.
Sincerely,
/s/ Edward W. Cook
Edward W. Cook
President
<PAGE>
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
VS LEHMAN BROTHERS MUNICIPAL BOND INDEX
Comparison of Change in Value of $10,000 Investment
[GRAPH APPEARS HERE SHOWING THE COMPARISON OF CHANGE IN VALUE OF A $10,000
INVESTMENT MADE IN APRIL 1988 BETWEEN THE ABT FLORIDA HIGH INCOME MUNICIPAL FUND
AND THE LEHMAN MUNI BOND INDEX.]
Date ABT Florida Lehman Muni
High Income Bond Index**
Muni Bond Fund*
June, 1992 9525 10000
Oct., 1992 9557 10165
April, 1993 10508 10951
Oct., 1993 11219 11597
April, 1994 10922 11187
Oct., 1994 10980 11106
April, 1995 11748 11849
* The past performance of ABT Florida High Income Municipal Bond Fund should
not be construed as a guarantee of future performance. The investment return and
principal value of an investment will fluctuate when redeemed, shares may be
worth more or less than their original cost. Returns for the Fund reflect the
maximum sales charge of 4.75%.
** The Lehman Brothers Municipal Bond Index is an unmanaged index and does not
take into account charges, fees and expenses.
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
ABT SOUTHERN MASTER TRUST
We have audited the accompanying statement of assets and liabilities of ABT
Florida High Income Municipal Bond Fund (a series of shares of beneficial
interest of ABT Southern Master Trust), including the schedule of investments as
of April 30, 1995, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the two years in the
period then ended and for the period June 17, 1992 (commencement of operations)
to April 30, 1993. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1995 by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of ABT
Florida High Income Municipal Bond Fund as of April 30, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the two years in the period then ended and for the period June 17, 1992 to April
30, 1993 in conformity with generally accepted accounting principles.
TAIT, WELLER & BAKER
PHILADELPHIA, PENNSYLVANIA
JUNE 2, 1995
<PAGE>
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
PRINCIPAL INTEREST MATURITY MARKET
AMOUNT RATE (%) DATE VALUE
--------- ------- -------- ------
MUNICIPAL BONDS - 97.4%
<S> <C> <C> <C> <C>
EDUCATION - 7.4%
$ 2,965,000 Leon County Educ. Facilities Authority Rev.
(Student Housing) 8.250 05/01/14 $ 3,002,063
685,000 Pinellas County Educ. Facilities Authority Rev.
(Eckerd College) 7.750 07/01/14 745,794
600,000 Pinellas County Educ. Facilities Authority Rev.
(Eckerd College) 6.500 08/01/13 576,000
500,000 Pinellas County Educ. Facilities Authority Rev.
(Eckerd College) 6.600 08/01/18 483,125
-----------
4,806,982
-----------
PREREFUNDED - .4%
250,000 Broward County Educ. Facilities Authority Rev.
(Nova University) 7.500 04/01/17 283,125
-----------
HOSPITALS - 12.3%
660,000 Alachua County Health Facilities Authority Rev.
(Santa Fe Healthcare) 7.600 11/15/13 693,000
1,000,000 Bay County Hospital Rev. 8.000 10/01/12 1,060,000
1,500,000 Escambia County Health Facilities Authority Rev.
(Baptist Hospital and Baptist Manor, Inc.) 6.000 10/01/14 1,370,625
250,000 Escambia County Health Facilities Authority Rev.
(Baptist Hospital and Baptist Manor, Inc.) 6.750 10/01/14 249,063
1,000,000 Largo, Fl. Sun Coast Health System Rev.
(Sun Coast Hospital) 6.200 03/01/13 881,250
1,500,000 Palm Beach County Health Facilities Authority Rev.
(Good Samaritan Hospital) 6.200 10/01/11 1,464,375
1,300,000 Palm Beach County Health Facilities Authority Rev.
(Good Samaritan Hospital) 6.300 10/01/22 1,264,250
1,000,000 Tarpon Springs Health Facilities Authority Rev.
(Helen Ellis Hospital) 7.500 05/01/11 1,027,500
-----------
8,010,063
-----------
HOUSING - 2.4%
1,000,000 Broward County HFA, Home Mortgage Rev.
GNMA/FNMA Collateralized 7.350 03/01/23 1,037,500
250,000 Winter Haven Housing Authority MFHR, FHA Insured 7.000 07/01/12 262,187
250,000 Winter Haven Housing Authority MFHR, FHA Insured 7.000 07/01/24 260,312
-----------
1,559,999
-----------
INSURED - 1.0%
650,000 Charlotte County Health Facilities Authority Rev., RIBS,
(Bon Secours Hospital) - FSA (1) 7.538 08/30/27 626,437
-----------
LIFE CARE - 17.4%
1,875,000 Brevard County Health Facilities Authority Rev.
(Coutney Springs Village) 7.500 11/15/12 1,802,344
1,545,000 City of Haileah Gardens IDR
(The Waterford Convalescent Project) 7.875 12/01/07 1,496,719
535,000 Escambia County Health Facilities Authority Rev.
(Azalea Trace, Inc.) 9.250 01/01/06 561,750
125,000 Escambia County Health Facilities Authority Rev.
(Azalea Trace, Inc.) 9.250 01/01/12 132,031
450,000 Escambia County Health Facilities Authority Rev.
(Azalea Trace, Inc.) 8.500 01/01/19 462,938
3,500,000 Homestead IDR
(Community Rehabilitation Providers Program) 7.950 11/01/18 3,342,500
750,000 Jacksonville Health Facilities Authority Rev.
(Cypress Village Project) 7.000 12/01/14 748,125
1,000,000 Jacksonville Health Facilities Authority Rev.
(Cypress Village Project) 7.000 12/01/22 983,750
400,000 Palm Beach Health Facilities Authority Rev.
(The Waterford Project) 7.750 10/01/15 400,500
1,500,000 St. John's IDA (Vicar's Landing Project) 6.750 02/15/12 1,400,625
-----------
11,331,282
-----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL INTEREST MATURITY MARKET
AMOUNT RATE (%) DATE VALUE
- ----------- -------- -------- -------
<S> <C> <C> <C> <C>
PLEDGED REVENUES - 8.8%
$ 3,000,000 City of Tampa Rev. (The Florida Aquarium Inc. Project) 7.750 05/01/27 3,093,750
2,510,000 Tampa Capital Improvement Program Rev. 8.375 10/01/18 2,657,462
-----------
5,751,212
-----------
POLLUTION CONTROL & WASTE MANAGEMENT FACILITIES - 7.9%
5,000,000 Polk County IDA (IMC Global, Inc.) 7.525 01/01/15 5,131,250
-----------
PUBLIC IMPROVEMENT - 1.8%
1,150,000 Hillsborough County Capital Improvement Rev. 6.750 07/01/22 1,198,875
-----------
SPECIAL ASSESSMENTS - 20.8%
400,000 Baytree Community Development District Rev. 8.750 05/01/12 409,500
1,695,000 Collier County Special Assessment Rev.
(Pine Ridge Industrial Park & Naples Production Park) 5.375 11/01/07 1,599,656
925,000 Collier County Special Assessment Rev.
(Pine Ridge Industrial Park & Naples Production Park) 5.600 11/01/13 825,562
2,500,000 Indian Trace CDD 8.250 05/01/11 2,487,500
500,000 North Palm Beach Water Control District Rev. #3A-1 7.000 07/31/11 505,625
500,000 North Palm Beach Water Control District Rev. Unit Dev. #18 6.875 11/01/13 504,375
1,310,000 North Springs Imp. District Water Management Series A 8.200 05/01/24 1,365,675
1,755,000 Quantum Community Development District Rev. 7.750 03/01/14 1,741,838
2,100,000 Riverwood Community Development District Rev. 7.750 10/01/14 2,055,375
2,000,000 South Indian River Water Control District Rev. #15 7.500 11/01/18 2,010,000
-----------
13,505,106
-----------
SPECIAL TAX - 3.8%
2,500,000 Brevard County Tourist Development Tax Rev.
(Marlins Spring Training Project) 6.875 03/01/13 2,459,375
-----------
TRANSPORTATION - 3.1%
1,000,000 Hillsborough County Aviation Authority Rev.
(Delta Airlines) 6.800 01/01/24 948,750
1,000,000 Port Everglades Authority Rev. 7.500 08/31/08 1,053,750
-----------
2,002,500
-----------
UTILITIES - 10.3%
1,125,000 Crossing at Fleming Island Community Development
District Rev. 7.375 10/01/19 1,070,156
675,000 Martin County IDR (Indiantown Cogeneration PJ-A) 7.875 12/15/25 719,719
500,000 Pace Property Finance Authority Utility Rev. 6.250 09/01/13 479,375
1,000,000 Palm Beach County IDA Rev.
(Okeelanta Power Ltd. Partnership Project) 6.850 02/15/21 976,250
1,000,000 Palm Beach County IDA Rev.
(Osceola Power Ltd. Partnership Project) 6.950 01/01/22 987,500
350,000 St. Lucie County Water and Sewer Authority Rev. 7.500 10/01/22 350,875
2,000,000 Virgin Islands Water and Sewer Authority Rev. 7.600 12/31/07 2,127,500
-----------
6,711,375
-----------
TOTAL INVESTMENTS (COST $63,820,802) - 97.4% 63,377,581
63,535,000 Other assets less liabilities - 2.6% 1,665,294
-----------
TOTAL NET ASSETS - 100.0% $65,042,875
===========
</TABLE>
(1) RIBS - Inverse floating rate security whose coupon is based on receiving
twice the underlying bond coupon less a floating interest rate. As the floating
interest rate moves higher, the income received on the RIB decreases. If the
floating interest rate were to go high enough, the coupon rate on the RIB could
be zero or negative. The rate shown represents the RIB rate at the end of the
semi-annual period.
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ABBREVIATIONS
<S> <C>
FHA - Federal Housing Authority
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
HFA - Housing Financial Authority
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
MFHR - Multi-family Housing Revenue
PCR - Pollution Control Revenue
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities at value - (NOTES 1A AND 4)
(Cost $63,820,802) $63,377,581
Cash 674,888
Receivables
Capital stock sold 173,016
Interest 1,440,972
Due from Adviser (NOTE 3) 56,003
Deferred organization expenses
(net of accumulated amortization of $14,553) (NOTE 1E) 10,830
Other assets 8,594
-----------
TOTAL ASSETS 65,741,884
-----------
LIABILITIES
Payable for capital stock redeemed 386,558
Accrued expenses 53,120
Dividends payable 259,331
-----------
TOTAL LIABILITIES 699,009
-----------
NET ASSETS
Source of net assets
Paid-in capital 66,992,667
Undistributed net investment income 604
Accumulated net realized losses on investments (1,507,175)
Unrealized depreciation of investments (443,221)
-----------
NET ASSETS $65,042,875
===========
Shares outstanding (NOTE 2) 6,398,976
Net asset value and redemption price per share
(Total net assets/shares outstanding) $10.16
Offering price per share (Net asset value/95.25%) $10.67
</TABLE>
* The sales charge is 4.75% on a single sale of less than $100,000, and reduced
on sales of $100,000 or more and certain other sales.
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1995
<TABLE>
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
INCOME
Interest $ 4,949,306
-----------
EXPENSES
Advisory fees (NOTE 3) 417,109
12b-1 fees (NOTE 3) 173,795
Transfer agent fees and expenses 78,574
Administration fees 53,059
Accounting services 47,040
Custodian fees 17,602
Registration and filing fees 24,113
Trustees' fees and expenses 6,137
Insurance 11,389
Audit fees 10,001
Reports to shareholders 7,701
Legal fees 20,432
Other 3,531
Amortization of organization expenses (NOTE 1E) 5,081
-----------
TOTAL EXPENSES 875,564
Fees waived and expenses reimbursed by Adviser (NOTE 3) (460,752)
-----------
NET EXPENSES 414,812
-----------
NET INVESTMENT INCOME 4,534,494
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1B AND 4)
Net realized loss on investments $(1,288,520)
Decrease in unrealized depreciation 1,557,790
-----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 269,270
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 4,803,764
===========
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED APRIL 30,
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
1995 1994
---- ----
<S> <C> <C>
OPERATIONS
Net investment income $ 4,534,494 $ 3,893,076
Net realized loss on investments (1,288,520) (90,453)
Unrealized appreciation (depreciation)
on investments during the year 1,557,790 (2,507,703)
------------ -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 4,803,764 1,294,920
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
($.65 and $.68 per share, respectively) (4,533,890) (3,893,076)
Net realized gains on investments
($.02 per share) - (128,202)
------------ -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (4,533,890) (4,021,278)
------------ -----------
FUND SHARE TRANSACTIONS
Proceeds from sale of shares 12,266,977 50,869,045
Proceeds from distributions reinvested 1,069,096 817,601
Cost of shares redeemed (21,245,986) (9,818,418)
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM FUND SHARE TRANSACTIONS (7,909,913) 41,868,228
------------ -----------
INCREASE (DECREASE) IN NET ASSETS (7,640,039) 39,141,870
NET ASSETS
Beginning of year 72,682,914 33,541,044
------------ -----------
END OF YEAR (INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME OF
$604 AND $-0-, RESPECTIVELY) $ 65,042,875 $72,682,914
============ ===========
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
As of April 30, 1995, there were an unlimited number of shares at $0.01 par
value authorized. Transactions are summarized as follows:
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
--------------------
1995 1994
---- ----
<S> <C> <C>
Shares sold 1,229,625 4,825,427
Shares issued on reinvestment of distributions 107,271 77,796
Shares redeemed (2,147,860) (932,258)
---------- ---------
Net increase (decrease) in shares outstanding (810,964) 3,970,965
========== =========
</TABLE>
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEARS ENDED APRIL 30, PERIOD ENDED
---------------------
1995 1994 APRIL 30, 1993*
---- ---- ---------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE AT BEGINNING OF PERIOD $ 10.08 $ 10.36 $ 10.00
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .65 .68 .61
Net realized and unrealized gain (loss)
on investments .08 (.26) .39
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS .73 .42 1.00
------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.65) (.68) (.61)
Distributions from net realized gains
on investments - (.02) (.03)
------- ------- -------
TOTAL DIVIDENDS AND DISTRIBUTIONS (.65) (.70) (.64)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 10.16 $ 10.08 $ 10.36
======= ======= =======
TOTAL RETURN ** 7.56% 3.32% 11.89%***
RATIOS/SUPPLEMENTAL DATA
NET ASSETS AT END OF PERIOD (000'S OMITTED) $65,043 $72,683 $ 33,541
RATIO OF EXPENSES TO AVERAGE NET ASSETS
Prior to fee waiver and expense
reimbursement 1.26% 1.12% 1.12%***
After fee waiver and expense
reimbursement .60% .14% -
RATIO OF NET INVESTMENT INCOME TO
AVERAGE NET ASSETS
Prior to fee waiver and expense
reimbursement 5.86% 5.18% 4.80%***
After fee waiver and expense
reimbursement 6.52% 6.16% 5.92%***
PORTFOLIO TURNOVER RATE 28% 31% 50%
</TABLE>
* COMMENCED OPERATIONS ON JUNE 17, 1992.
** TOTAL RETURN DOES NOT CONSIDER THE EFFECT OF THE SALES LOAD.
*** ANNUALIZED.
<PAGE>
- --------------------------------------------------------------------------------
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1995
- --------------------------------------------------------------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ABT Florida High Income Municipal Bond Fund (the "FUND") is a series of ABT
Southern Master Trust (the "TRUST"), a Massachusetts Business Trust. The
Fund is registered under the Investment Company Act of 1940 as an open-end,
diversified management investment company. The following is a summary of
significant accounting policies followed by the Fund in the preparation of
its financial statements.
A. VALUATION OF INVESTMENTS
Investments in municipal bonds are valued at the mean between bid and
asked quotations obtained from a recognized statistical valuation
service determined by reference to stated interest rates, maturity
dates, bond ratings, and current market conditions. The Fund invests
primarily in debt instruments in the State of Florida, and the ability
of the issuers to meet their obligations may be affected by economic
developments within this state.
B. INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME
Investment transactions are accounted for on a trade date basis.
Interest income is accrued on a daily basis. Premium and discounts on
investments purchased are amortized in accordance with the provisions
of the Internal Revenue Code.
C. INCOME TAXES
It is the Fund's intention to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and
to distribute all of its taxable income to its shareholders. Therefore,
no provision has been made for federal income taxes.
D. DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income are declared daily and
distributions from net realized gains on investments, if any, will be
declared annually. All such dividends and distributions are recorded on
the ex-dividend date.
E. ORGANIZATION EXPENSES
Expenses incurred in connection with the Fund's organization and
registration aggregating $25,383 were deferred and are being amortized
on a straight-line basis over a period of five years.
(2) TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
As of April 30, 1995, there were an unlimited number of shares at $0.01 par
value authorized. Transactions are summarized as follows:
<PAGE>
- --------------------------------------------------------------------------------
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
(3) INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund pays monthly an advisory fee to Palm Beach Capital Management,
Ltd. (the "ADVISER") equal on an annual basis to .60% of the average daily
net assets of the Fund.
Fishkind & Associates, Inc. (the "SUBADVISER") services as the subadviser
to the Adviser pursuant to an investment subadvisory agreement under which
the Subadviser has contracted to provide the Adviser with credit analysis
and other information with respect to the Fund's investments. The
Subadviser will receive a fee from the Adviser representing one-half of the
Adviser's fee and is responsible for its own expenses.
ABT Financial Services, Inc. ("ABT"), an affiliate of the Adviser, serves
as the Fund's principal Underwriter and Distributor. For the year ended
April 30, 1995, ABT received $72,385 for underwriting concessions on sales
of shares and $1,800 in commissions as a retail broker.
The Fund has adopted a distribution plan ("12B-1 PLAN") pursuant to which
the Fund reimburses ABT monthly (subject to a limit of .25% per annum of
the Fund's average daily net assets) for ABT's costs and expenses in
connection with any activity that is primarily intended to result in a sale
of Fund shares. Such distribution fees are set forth in the Statement of
Operations.
During the year ended April 30, 1995, the Adviser limited operating
expenses by reimbursing the Fund for some of its expenses as stated in the
Statement of Operations. This is a voluntary reimbursement and there is no
guarantee that the Adviser will continue this practice.
During the six months ended October 31, 1994, The Bank of New York provided
administrative and accounting services for the Fund, for which they
received the fees shown in the Statement of Operations. Effective November
1, 1994, administrative and accounting services were provided by the
Adviser, and all fees for these services were paid to the Adviser. During
the period November 1, 1994 to April 30, 1995 such fees amounted to
$39,307.
Certain officers and trustees of the Trust are also officers and/or
directors of the Adviser, Subadviser and/or ABT.
(4) INVESTMENT TRANSACTIONS
During the year ended April 30, 1995, the cost of purchases and the
proceeds from sales of investment securities other than short-term
obligations were $19,572,755 and $30,631,727, respectively. The cost of
securities for federal income tax purposes is the same as that shown in the
investment portfolio. Realized gains and losses are reported on an
identified cost basis.
At April 30, 1995, the aggregate gross unrealized appreciation and
depreciation of portfolio securities, based on cost for federal income tax
purposes, was as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 615,602
Unrealized depreciation (1,058,823)
------------
Net unrealized depreciation $ (443,221)
============
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
ABT FLORIDA HIGH INCOME MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
(5) REORGANIZATION
On March 3, 1995, the Adviser and certain of its affiliates entered into an
Asset Purchase Agreement with First Union National Bank ("FIRST UNION")
pursuant to which First Union would acquire substantially all of the assets
of the Adviser (the "ACQUISITION"). On March 15, 1995, in connection with
the Acquisition, the Trust, on behalf of the Fund, entered into an
Agreement and Plan of Reorganization (the "PLAN") with Evergreen Municipal
Trust, on behalf of Evergreen Florida High Income Municipal Bond Fund
("EVERGREEN"). The Plan provides that the Fund will transfer substantially
all of its assets in exchange for Class A shares of beneficial interest of
Evergreen on a tax-free basis. Evergreen is a diversified series of
Evergreen Municipal Trust which was created to effect the acquisition and
has had no operations other than those related to organizational matters
and the registration of its shares. The investment objectives of Evergreen
are substantially the same as those of the Fund. It is anticipated that the
Plan will be consummated at the close of business on June 30, 1995.
