LEBENTHAL
FUNDS, INC.
Annual Report
November 30, 1995
LEBENTHAL
THE WORKHORSE OF INVESTMENTS.
[COVER GRAPHIC OMMITED]
<PAGE>
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120 BROADWAY, NEW YORK, N.Y. 10271
LEBENTHAL 212/425-6116
FUNDS, INC. OUTSIDE NYC TOLL FREE 1-800/221-5822
===============================================================================
Dear Shareholder:
Each of the Lebenthal bond funds did extremely well in the twelve months ended
November 30, 1995. We are particularly pleased that our largest fund, The
Lebenthal NY Fund, reaching $105.6 million in assets, was the number one
performing fund among its peers on a rolling 12-month basis for the seven
consecutive months ended October 30, 1995, and number two in November out of 87
funds followed by Lipper Analytical Services, Inc.
The total return statistics of the Lebenthal funds over the last year were
23.56% for the New York Fund, 19.10% for the New Jersey Fund, and 23.11% for the
Taxable Municipal bond fund. These figures do not reflect the maximum 4.5% sales
charge.* Taking that into account, an investor who put $1,000 into each of the
funds on December 1, 1994, reinvested the monthly dividends, and sold on
November 30, 1995, would have received $1,180.40 from the New York Fund,
$1,137.50 from the New Jersey Fund, and $1,175.50 from the Taxable Municipal
Fund.**
The performance records of the $3.3 million New Jersey and $8.7 million Taxable
Municipal Funds relative to their peers have also been excellent. New Jersey's
19.10% total return for the year places it eleventh out of the 49 New Jersey
funds followed by Lipper. The Taxable Municipal Bond Fund's 23.11% total return
can not be directly compared to any Lipper fund category because it is the only
taxable municipal bond fund. However, the average return of the Lipper fund
grouping that most closely approximates it definitionally is the "A rated
Corporate Debt Funds" was 17.73% for the year - which obviously is much lower
than our 23.11% return. This is quite remarkable considering that the average
quality of the Lebenthal Taxable Municipal Bond fund never dropped below AA
during the past year and is currently AA+.
We are also pleased with the 7.94% total annualized return (without load) of the
Lebenthal New York Fund for the three years ended November 30, 1995. This return
places it #6 out of 49 NY funds followed by Lipper, which had been in existence
for the entire period of three extraordinary years. 1993 and 1995 were two of
the best years for bonds; 1994 was the worst in over sixty years.
The last twelve months well prove the desirability of investing moneys as they
become available. If we had followed the advice of the vast majority of
economists, we would still be sitting with a large cash position because
virtually all of them were predicting that interest rates would end up the year
significantly higher than what proved to be the case. I very much believe in
being invested at all times - correctly calling changes in interest rates is
almost impossible.
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* The total return of each fund, assuming payment of a full 4.5% load, for
the one year period ending 11/30/95 was (a) 18.04% for the Lebenthal New
York Municipal Bond Fund; (b) 13.75% for the Lebenthal New Jersey Municipal
Bond Fund; and (c) 17.55% for the Lebenthal Taxable Municipal Bond Fund.
** The total return of each fund, assuming payment of a full 4.5% load, from
inception through November 30, 1995 was (a) 37.24% for the Lebenthal New
York Municipal Bond Fund (inception June 24, 1991); (b) a negative .74% for
the Lebenthal New Jersey Bond Fund (inception December 1, 1993); and (c)
11.11% for The Lebenthal Taxable Municipal Bond Fund (inception December 1,
1993). The SEC yield of the three fund's at their November 30, 1995,
offering prices were: New York, 4.88%; New Jersey, 5.26%; and Taxable
Municipal, 7.12%. Past performance is no guarantee of future results.
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Who would have thought with real economic growth at 2.5%, an unemployment rate
of 5.4%, and the Federal Funds Rate at 5.5%, the long Treasury, after hitting
8.14% in November 1994, would drop back to 6%, near the 1993 low of 5.73%? How
is this possible? The reasons appear to be (1) the lack of inflation, which in
itself is surprising since unemployment below 5.5% has typically caused
wage-push inflation; (2) the view that the Federal Reserve (and other central
banks) will be lowering rates continually all through 1996 in reaction to
slowing economic growth; (3) the knowledge that interest rates always behave
themselves during election years; (4) the belief that the U.S. dollar will
continue to grow in value relative to other currencies causing foreign investors
to move into U.S. denominated instruments; and (5) the hope that federal and
state governments will be successful in reducing deficits by reining in
spending.
The more than six million person growth in employment over the last two years
has not led to inflationary pressures because the growth has largely been in
lower paying jobs - many of which are with temporary agencies that have no
benefits or job security. Plus, there has been a significant and continuing
reduction in the better paying jobs due to productivity improvements and the
ability and willingness to transfer work to lower cost countries. This trend has
been amplified by the strength of the dollar and economic problems, such as the
depression in Mexico.
In this type of environment, people don't spend. For one thing, they really
don't have the money to do so. And, if they are constantly having to worry about
keeping their jobs and avoiding reductions in pay and/or benefits, they are
cautious about buying. Furthermore, individuals are reaching their credit limits
and they are now starting to have difficulties in making required payments on
time. Then, too, individuals are now having to think seriously about saving,
particularly when the adequacy of the government safety net is in question. More
savings are great for keeping interest rates low, of course. But, until savings
are invested and become factories, houses, roads, airports, and unspent income,
they subtract from economic growth in this consumption economy of ours.
If people don't consume, there is no ability to raise prices - and prices could
actually decrease, which is what I believe is happening now - although it will
be awhile before the statistics show it. In any case, there can't be price
increases when it is easy to import the same or better products cheaper. If
there is minimal inflation, there is no need for interest rates to be as high as
they are.
The economy can literally "stop on a dime" if consumers precipitously postpone
purchases of automobiles and housing, which are the two main pillars of the
economy, on a change in consumer confidence in the future. A slowdown in these
industries will quickly cause postponement of orders in other industries leading
to a multi-month draw down of inventories. We are fearful that these negatives
to the economy may already be taking place - with the budget standoff and the
Bosnia adventure perhaps being the catalysts.
Regardless of the preceding comments, I believe that the primary reason interest
rates have fallen so much is the movement of vast amounts of assets from yen
denominated instruments into the U.S. treasury market to take advantage of the
500-600 basis point yield differential between fixed income instruments in the
U.S. and Japan. The movement into U.S. Treasuries became a flood when Japanese
investors determined that they could earn 6% or so on U.S. government bonds and
another few percentage points on a twin U.S. bond and dollar rally versus only
earning between 1/2 of 1% and 2% in yen denominated investments. Indeed, this
vast movement of funds helped drive the dollar and bond prices ever higher and
was a self-fulfilling prophecy. We think the move into the dollar will continue
causing it rise even more - and continue to take bonds with it.
In such an environment of generally rising bond prices, we could have reached
for faster growth using deeply discounted instruments. Instead we chose to be
conservative and concentrate our buying power in current coupon bonds, which
quickly became cushion bonds as interest rates fell. We have continued this
strategy in order to deliver
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an attractive current yield as well as minimize price volatility. Our full
coupon bonds have call protection, mostly into the next century, and are in
keeping with our objective of providing maximum current income consistent with
preservation of capital and reasonable growth.
Bonds are up across the board. But tax frees have not rallied nearly as much as
taxables since their primary buyers are individual investors. The individual has
been patently distracted by the bull market in equities and concerns over
passage of a flat tax. And yet, on an after tax basis, the return on municipals
has not been that much less than equities. And it comes with greater certainty
than any stock can promise. (Of course, candor - not to mention securities law -
requires we say that past performance is no assurance of future results, share
values fluctuate, and the price you get for your shares when you sell could be
more or less than your original cost.)
We expected municipals to outperform taxables last year due to what looked like
the excellent technical condition of the market, notably the expected demand of
more than $300 billion vs. an expected supply of only $150 billion in new
issues. Instead, the public actually took money out of the municipal market
causing yields to rise. Some of those tax free yields are currently 98-100% of
the yields on treasury bonds vs. the more normal relationship of 84%.
What with tax exempts now so attractive vis-a-vis taxable alternatives, what
happens next? We believe that a good sized further rally in fixed income
instruments lies ahead as the Federal Reserve moves aggressively to reduce
interest rates recognizing the increasingly obvious weakness in the economy.
About the only action available to help reboot the economy is significantly
lower interest rates.
We expect municipal bonds to do particularly well because they are very cheap to
taxable obligations, and equities no longer provide competition due to the
correction we expect courtesy of disappointing earnings. Additionally, we
believe that it will soon become obvious a flat tax is not a viable alternative
because (1) it is not fair - you don't tax the little guy's earned income and
exempt the big guy's investment income; (2) the public does not want it; (3) it
is unlikely to generate sufficient revenues to fund the government; (4) it is
sufficiently complicated to turn the economy on its ear and lead to years of
turmoil; and (5) the foolishness could severely damage the chances of whomever's
party proposes a Flat Tax in 1996. After we get a federal budget, nobody better
breathe, let alone tamper with the revenue system, a mighty slim reed on which
all that promise of deficit reduction hangs.
Let me stress again, this is a good time for fixed-income investments - in our
opinion. Also, as I am sure you realize, the information and statistics included
in this commentary are not guaranteed. However, they have been obtained from
reliable sources and are believed to be accurate.
We thank you for the opportunity to be of service.
Very truly yours,
/S/ James L. Gammon
James L. Gammon
President
Lebenthal Asset Management, Inc.
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LEBENTHAL NEW YORK MUNICIPAL BOND FUND
PERFORMANCE COMPARISON CHART
===============================================================================
The following chart compares the performance of Lebenthal New York Municipal
Bond Fund (with and without the 4.5% sales load), for the one year and since
inception periods, against the Lehman Brothers Municipal Bond Index (Lehman
Index) for the same time periods. It is important to keep in mind that the
Lehman Index excludes the effects of any fees or sales charges, and does not
reflect state-specific bond market performance.
The following table represents the omitted graph.
<TABLE>
<CAPTION>
INCEPTION LEHMAN MBI LOAD NO-LOAD
- --------- ---------- ---- -------
<C> <C> <C> <C>
08/08/91 10,000.00 9,550.00 10,000.00
08/31/91 10,102.00 9,576.68 10,027.93
09/30/91 10,233.33 9,643.37 10,097.77
10/31/91 10,325.43 9,764.96 10,225.09
11/30/91 10,354.34 9,750.91 10,210.38
12/31/91 10,576.96 10,017.27 10,489.29
01/31/92 10,601.28 9,912.54 10,379.63
02/29/92 10,604.46 9,981.87 10,452.22
03/31/92 10,608.70 10,017.59 10,489.62
04/30/92 10,703.12 10,117.19 10,593.91
05/31/92 10,829.42 10,309.96 10,795.77
06/30/92 11,011.35 10,561.46 11,059.12
07/31/92 11,341.69 10,996.01 11,514.14
08/31/92 11,230.55 10,750.28 11,256.84
09/30/92 11,303.54 10,777.59 11,285.43
10/31/92 11,192.77 10,557.44 11,054.91
11/30/92 11,393.12 10,890.75 11,403.93
12/31/92 11,509.33 11,025.65 11,545.18
01/31/93 11,642.84 11,156.20 11,681.88
02/28/93 12,064.31 11,654.52 12,203.68
03/31/93 11,936.43 11,525.53 12,068.61
04/30/93 12,056.98 11,682.96 12,233.46
05/31/93 12,124.50 11,763.89 12,318.21
06/30/93 12,326.98 11,955.02 12,518.34
07/31/93 12,343.01 11,977.58 12,541.97
08/31/93 12,599.74 12,283.19 12,861.98
09/30/93 12,743.38 12,424.61 13,010.06
10/31/93 12,767.59 12,435.00 13,020.94
11/30/93 12,655.24 12,261.95 12,839.74
12/30/93 12,922.39 12,534.19 13,124.80
01/31/94 13,069.96 12,678.36 13,275.77
02/28/94 12,731.45 12,327.21 12,908.07
03/31/94 12,213.03 11,658.93 12,208.30
04/29/94 12,316.23 11,652.51 12,201.58
05/31/94 12,423.01 11,800.54 12,356.58
06/30/94 12,347.10 11,709.19 12,260.94
07/29/94 12,573.43 11,987.28 12,552.13
08/31/94 12,616.93 12,028.42 12,595.20
09/30/94 12,431.71 11,751.19 12,304.91
10/31/94 12,210.93 11,403.55 11,940.89
11/30/94 11,990.15 11,073.50 11,595.28
12/31/94 12,253.94 11,441.27 11,980.39
01/31/95 12,604.40 11,957.44 12,520.88
02/28/95 12,971.19 12,375.71 12,958.86
03/31/95 13,120.36 12,477.59 13,065.53
04/30/95 13,136.10 12,525.53 13,115.74
05/31/95 13,555.14 12,967.76 13,578.81
06/30/95 13,437.21 12,915.42 13,524.00
07/31/95 13,564.86 12,906.48 13,514.64
08/31/95 13,737.14 13,086.10 13,702.72
09/30/95 13,823.68 13,165.66 13,786.03
10/31/95 14,024.13 13,394.37 14,025.52
11/30/95 14,256.93 13,728.87 14,375.78
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return Since
One Commencement of Operations
Year August 8, 1991
---- --------------
Lebenthal New York Municipal Bond Fund:
<S> <C> <C>
with sales load 18.04% 7.62%
with out sales load 23.56% 8.77%
Lehman Index 18.89% 8.56%
Past performance is not predictive of future performance.
</TABLE>
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LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
PERFORMANCE COMPARISON CHART
===============================================================================
The following chart compares the performance of Lebenthal New Jersey Municipal
Bond Fund (with and without the 4.5% sales load), for the one year and since
inception periods against the Lehman Brothers Municipal Bond Index (Lehman
Index) for the same time periods. It is important to keep in mind that the
Lehman Index excludes the effects of any fees or sales charges, and does not
reflect state-specific bond market performance.
The following tabel represents the omitted graph.
<TABLE>
<CAPTION>
INCEPTION MBI LOAD NO-LOAD
- --------- --- ---- -------
<C> <C> <C> <C>
12/01/93 10,000.00 9,550.00 10,000.00
12/31/93 10,211.10 9,688.16 10,148.21
01/31/94 10,327.71 9,823.53 10,290.01
02/28/94 10,060.22 9,397.71 9,843.97
03/31/94 9,650.57 8,761.68 9,177.74
04/30/94 9,732.41 8,757.23 9,173.08
05/31/94 9,816.79 8,891.50 9,313.72
06/30/94 9,756.81 8,789.68 9,207.06
07/31/94 9,935.65 8,959.27 9,384.71
08/31/94 9,970.03 8,984.09 9,410.70
09/30/94 9,823.67 8,776.38 9,193.14
10/31/94 9,649.20 8,510.54 8,914.67
11/30/94 9,474.74 8,300.86 8,695.03
12/30/94 9,683.19 8,557.55 8,963.91
01/31/95 9,960.12 8,768.49 9,184.87
02/28/95 10,249.96 9,007.48 9,435.21
03/31/95 10,367.84 9,089.45 9,521.07
04/30/95 10,380.28 9,104.86 9,537.22
05/31/95 10,711.41 9,391.12 9,837.06
06/30/95 10,618.22 9,290.91 9,732.10
07/31/95 10,719.09 9,361.34 9,805.87
08/31/95 10,855.23 9,494.65 9,945.52
09/30/95 10,923.62 9,541.02 9,994.09
10/31/95 11,082.01 9,717.88 10,179.34
11/30/95 11,265.97 9,926.16 10,397.51
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return Since
One Commencement of Operations
Year December 1, 1993
---- ----------------
Lebenthal New Jersey Municipal Bond Fund:
<S> <C> <C>
with sales load 13.75% -0.37%
with out sales load 19.10% 1.97%
Lehman Index 18.89% 6.14%
Past performance is not predictive of future performance.
</TABLE>
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LEBENTHAL TAXABLE MUNICIPAL BOND FUND
PERFORMANCE COMPARISON CHART
===============================================================================
The following chart compares the performance of Lebenthal Taxable Municipal Bond
Fund (with and without the 4.5% sales load), for the one year and since
inception periods against the Lehman Brothers Long Corp. Index (Lehman Index)
for the same time periods. It is important to keep in mind that the Lehman Index
excludes the effects of any fees or sales charges, and does not reflect
state-specific bond market performance.
The following table represents the omitted graph.
<TABLE>
<CAPTION>
INCEPTION LONG CORP INDEX LOAD NO-LOAD
- --------- --------------- ---- -------
<C> <C> <C> <C>
12/01/93 10,000.00 9,550.00 10,000.00
12/31/93 10,056.00 9,710.50 10,171.61
01/31/94 10,300.36 9,743.78 10,206.47
02/28/94 9,995.47 9,745.02 10,207.78
03/31/94 9,594.65 9,493.45 9,944.26
04/30/94 9,482.39 9,385.34 9,831.01
05/31/94 9,387.57 9,304.58 9,746.42
06/30/94 9,332.18 9,242.46 9,681.35
07/31/94 9,654.14 9,317.95 9,760.42
08/31/94 9,620.35 9,240.50 9,679.29
09/30/94 9,356.76 9,224.90 9,662.96
10/31/94 9,321.20 9,197.88 9,634.66
11/30/94 9,355.69 8,989.53 9,416.40
12/31/94 9,487.60 9,209.91 9,647.25
01/31/95 9,721.95 9,294.19 9,735.53
02/28/95 10,036.94 9,582.28 10,037.31
03/31/95 10,146.34 9,658.90 10,117.56
04/30/95 10,342.17 9,809.53 10,275.35
05/31/95 10,985.45 10,115.71 10,596.06
06/30/95 11,101.90 10,250.93 10,737.71
07/31/95 10,993.10 10,284.77 10,773.15
08/31/95 11,240.44 10,409.20 10,903.49
09/30/95 11,422.54 10,662.82 11,169.15
10/31/95 11,595.02 10,897.10 11,414.56
11/30/95 11,865.18 11,111.63 11,639.28
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return Since
One Commencement of Operations
Year December 1, 1993
---- ----------------
Lebenthal Taxable Municipal Bond Fund:
<S> <C> <C>
with sales load 17.55% 5.41%
with out sales load 23.11% 7.88%
Lehman Index 26.82% 8.93%
Past performance is not predictive of future performance.
</TABLE>
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LEBENTHAL NEW YORK TAX FREE MONEY FUND
STATEMENT OF INVESTMENTS
NOVEMBER 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- ------
Other Tax Exempt Investments (5.85%)
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<S> <C> <C> <C> <C> <C>
$ 2,000,000 Brentwood, NY UFSD (Suffolk County, NY) TAN (b) 06/28/96 3.93% $ 2,005,518
1,000,000 Dutchess County, NY BAN 08/02/96 3.71 1,003,094 MIG-1
420,000 Syracuse, NY GO - Series A
MBIA Insured 06/15/96 3.70 427,029 Aaa AAA
---------- ---------
3,420,000 Total Other Tax Exempt Investments 3,435,641
---------- ---------
Other Variable Rate Demand Instruments (86.22%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Franklin County, NY IDA IDRB (Kes Chatauqua Project)
LOC Bank of Tokyo, Ltd. 07/01/21 3.80% $ 1,000,000 A1
3,000,000 New York City GO 1993 - Series E3
LOC Morgan Guaranty 08/01/23 3.70 3,000,000 VMIG-1 A1+
100,000 New York City Trust Cultural Resource RB
(Jewish Museum)
LOC Sumitomo Bank, Ltd. 12/01/21 4.00 100,000 VMIG-1 A1
1,800,000 New York City Trust Cultural Resource RB
(Solomon R. Guggenheim Foundation) - Series 90B
LOC Swiss Bank Corp. 12/01/15 3.70 1,800,000 A1+
1,500,000 New York City, NY - Series A5
LOC Kredietbank 08/01/16 3.80 1,500,000 VMIG-1 A1
1,100,000 New York City, NY - Subseries E4
LOC State Street Bank & Trust Co. 08/01/21 3.70 1,100,000 VMIG-1 A1+
` 900,000 New York City, NY GO Bond - Series 1993
Subseries E-5
LOC Sumitomo Bank, Ltd. 08/01/17 3.85 900,000 VMIG-1 A1
2,000,000 New York City, NY GO Bond - Series E2
LOC Fuji Bank, Ltd. 05/15/96 3.80 2,000,000 VMIG-1 A1
1,800,000 New York City, NY GO Bond - Series 1993
Subseries E5
LOC Sumitomo Bank, Ltd. 08/01/10 3.85 1,800,000 VMIG-1 A1
1,500,000 New York City, NY GO - Series E5
LOC Sumitomo Bank, Ltd. 08/01/18 3.85 1,500,000 VMIG-1 A1
2,600,000 New York City, NY GO - Subseries B10
LOC Union Bank of Switzerland 08/15/24 3.55 2,600,000 VMIG-1 A1
400,000 New York City, NY GO - Subseries B2
LOC Dai-Ichi Kangyo Bank, Ltd. 08/15/18 4.05 400,000 VMIG-1 A1
2,400,000 New York City, NY IDA
(Nippon Cargo Airlines Company)
LOC Industrial Bank of Japan, Ltd. 11/01/15 4.75 2,400,000 A1
</TABLE>
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See Notes to Financial Statements.
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LEBENTHAL NEW YORK TAX FREE MONEY FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- ------
Other Variable Rate Demand Instruments (Continued)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,126,000 New York City, NY IDA Civic Facility RB
(The Berkeley Carrol School Project) - Series 1993
LOC Chemical Bank 06/30/23 3.45% $ 1,126,000 VMIG-1
4,700,000 New York City, NY IDRB (Airport Project) - Series 1985
LOC Bayerische Landesbank Girozentrale 04/01/00 3.55 4,700,000 P1 A1+
1,500,000 New York City, NY IDRB (Stroheim & Romann Inc.)
LOC Westdeutsche Landesbank Girozentrale 12/01/15 3.55 1,500,000 A1+
2,200,000 New York City, NY MHRB
(James Tower Development) - Series A
LOC Citibank 07/01/05 3.50 2,200,000 A1+
1,200,000 New York State ERDA PCRB
(Niagara Mohawk Power Corp.)
LOC Toronto-Dominion Bank 12/01/25 3.70 1,200,000 P1
2,000,000 New York State ERDA PCRB
(Rochester Gas & Electric) - Series 1984
LOC The Bank of New York 10/01/14 3.65 2,000,000 P1
1,200,000 New York State Energy Research & Development
(Niagara Mohawk Power)
LOC Morgan Stanley 06/01/29 3.55 1,200,000 VMIG-1 A1+
1,495,000 New York State JDA - Series 1989 03/01/05 4.05 1,495,000 VMIG-1
700,000 New York State JDA - Series A1
LOC Fuji Bank, Ltd. 03/01/03 3.85 700,000 VMIG-1
2,000,000 New York State Local Government Assistance
Corporation - Series D
LOC Societe Generale 04/01/25 3.55 2,000,000 VMIG-1 A1+
1,500,000 New York State Local Government Assistance
Corporation - Series E
LOC Canadian Imperial Bank of Commerce 04/01/25 3.55 1,500,000 VMIG-1 A1+
2,500,000 New York State Local Government Assistance
Corporation - Series 1994B
LOC Swiss Bank Corp. 04/01/23 3.50 2,500,000 VMIG-1 A1+
500,000 New York State Medical Care Pooled
Equipment Authority - Series 1994A
LOC Chemical Bank 11/01/03 3.55 500,000 VMIG-1
1,900,000 New York State Thruway Authority RB
FGIC Insured 01/01/24 3.65 1,900,000 VMIG-1 A1+
500,000 New York, NY - Series B Subseries B6
MBIA Insured 08/15/05 3.70 500,000 VMIG-1 A1+
1,300,000 Niagara Falls Bridge Commission Toll Bridge RB 1993 A
FGIC Insured 10/01/19 3.65 1,300,000 VMIG-1 A1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- ------
Other Variable Rate Demand Instruments (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,200,000 Suffolk County, NY IDA
(Nissequogue Cogen Partners) - Series 1993
LOC Toronto-Dominion Bank 12/15/23 3.75% $ 1,200,000 VMIG-1 A1+
2,000,000 Suffolk County, NY Water Authority BAN 12/14/99 3.65 2,000,000 VMIG-1
1,000,000 Yonkers, NY IDA Civic RB (Consumers Union Facilities)
AMBAC Insured 07/01/24 3.45 1,000,000 VMIG-1 A1+
---------- -----------
50,621,000 Total Other Variable Rate Demand Instruments 50,621,000
---------- ----------
<CAPTION>
Tax Exempt Commercial Paper (3.41%)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 Dorm Authority of the State of NY
Memorial Sloan Kettering Cancer Center RB 1989B
LOC Chemical Bank 12/14/95 3.60% $ 2,000,000 VMIG-1 A1
--------- ---------
2,000,000 Total Tax Exempt Commercial Paper 2,000,000
---------- ----------
<CAPTION>
Variable Rate Demand Instruments - Participations (2.94%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 260,569 Auburn, NY IDA IDRB (Bo-Mer Manufacturing Co., Inc.)
LOC Chemical Bank 10/01/00 5.69% $ 260,569 P1 A1
265,634 Nassau County, NY IDA IDRB
(Steven Klein/Normandie Metal Fabricators)
LOC Chemical Bank 11/01/99 5.69 265,634 P1 A1
266,640 New York City, IDA IDRB (Precision Plating Inc.)
LOC Chemical Bank 09/01/00 5.69 266,640 P1 A1
483,370 New York City, NY
(Seybert-Nicholas Printing Corporation/Kenner Printing)
LOC Chemical Bank 06/01/00 5.69 483,370 P1 A1
216,666 New York City, NY IDA IDRB (Abigail Press, Inc. Project)
LOC Chemical Bank 02/01/99 5.69 216,666 P1 A1
90,000 New York City, NY IDA IDRB (Zaro's Bakeshop Inc.)
LOC Chemical Bank 11/01/96 5.69 90,000 P1 A1
143,041 Ulster County, NY IDA IDRB (Fin Pan Inc. Project)
LOC Chemical Bank 11/01/99 5.69 143,041 P1 A1
---------- ----------
1,725,920 Total Variable Rate Demand Instruments - Participations 1,725,920
---------- ----------
Total Investments (98.42%) (Cost $57,782,561+) 57,782,561
Cash and Other Assets, Net of Liabilities (1.58%) 929,470
----------
Net Assets (100.0%) $58,712,031
==========
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL NEW YORK TAX FREE MONEY FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1995
===============================================================================
FOOTNOTES
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings noted for variable rate demand instruments are those of the
bank whose letter of credit secures such instruments or the guarantor of
the bond. P1 and A1+ are the highest ratings assigned for tax exempt
commercial paper.
(b) Securities that are not rated which the Fund's Board of Directors has
determined to be of comparable quality to those rated securities in which
the Fund invests.
(c) Securities payable on demand at par including accrued interest (usually
with seven days notice) and unconditionally secured as to principal and
interest by a bank letter of credit. The interest rates are adjustable and
are based on bank prime rates or other interest rate adjustment indices.
The rate shown is the rate in effect at the date of this statement.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note MHRB = Multi-Family Housing Revenue Bond
ERDA = Energy Research and Development Authority MBIA = Municipal Bond Insurance Association
FGIC = Federal Guarantee Insurance Company PCRB = Pollution Control Revenue Bond
GO = Government Obligation RAN = Revenue Anticipation Note
IDA = Industrial Development Agency RB = Revenue Bond
IDRB = Industrial Development Revenue Bond TAN = Tax Anticipation Note
JDA = Job Development Authority USFD = Unified School Finance District
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
NOVEMBER 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Ratings
----------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ ------ ----------------
MUNICIPAL BONDS (95.53%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,285,000 Monroe County, NY IDA Civil Facility (DePaul Community Facility),
6.50%, due 2/01/24 $ 1,356,754 Aa
300,000 New York City Unlimited Tax General Obligation, 7.750%, due 8/15/13 338,469 Baa1 BBB+
2,350,000 New York, New York - Series C, 7.25%, due 8/15/24 2,542,912 Baa1 BBB+
4,000,000 New York, New York - Series F, 6.625%, due 2/15/25 4,215,080 Baa1 BBB+
2,400,000 New York State Dormitory Authority Revenue, 7.40%, due 8/01/30 2,719,896 Aa AAA
7,255,000 New York State Dormitory Authority Revenue (Highlands Center),
6.60%, due 2/01/34 7,717,143 AA
2,330,000 New York State Dormitory Authority Revenue (Presbyterian Residential Community),
6.50%, due 8/01/34 2,460,084 AA
750,000 New York State Dormitory Authority Revenue (State University Educational Facilities),
7.00%, due 5/15/16 808,170 Baa1 BBB+
3,900,000 New York State Dormitory Authority Revenue (Nottingham Retirement Community),
6.125%, 7/01/25 3,974,958 AA
3,500,000 New York State Dormitory Authority Revenue (Jewish Geriatric) FHA - Insured Mortgage,
7.35%, due 8/01/29 3,972,080 AAA
5,190,000 New York State Dormitory Authority Revenue
(Niagara Frontier Home) FHA - Insured Mortgage, 6.40%, 2/01/35 5,460,295 AA
1,000,000 New York State Dormitory Authority Revenue (St. Lukes Home Residential Health),
6.375%, 8/01/35 1,051,630 AA
6,000,000 New York State Dormitory Authority Revenue (Our Lady Of Consulation Nursing Home),
FHA - Insured Mortgage, 6.05%, 8/01/35 6,059,400 AA
4,755,000 New York State Dormitory Authority Revenue (Geneva Nursing Home II),
FHA - Insured Mortgage, 6.20%, 8/01/35 4,910,108 AA
1,000,000 New York State Energy Research & Development Authority - Industrial Development
& Pollution Control (Brooklyn Union and Gas), MBIA, 6.75%, due 2/01/24 1,081,590 Aaa AAA
6,000,000 New York State Energy Research & Development Authority - Electric Facilities Revenue -
(Consolidated Edison Company Project), 6.75%, due 1/15/27 6,312,900 A1 A+
1,000,000 New York State Energy Research & Development Authority - Electric Facilities
Revenue - (Long Island Lighting Company Project), 7.15%, due 2/01/22 1,025,930 Ba1 BB+
500,000 New York State Energy Research & Development Authority - Pollution Control Revenue -
(Niagara Mohawk Power Corporation), FGIC, 6.625%, due 10/01/13 544,950 Aaa AAA
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Ratings
----------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ ------ ----------------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 550,000 New York State Environmental Facilities Corp. Pollution Control Revenue -
(State Water Revolving Fund - Series C), 7.20%, due 3/15/11 $ 603,939 Aa A+
1,750,000 New York State Medical Hospital Nursing Facilities, 6.60%, due 2/15/31 1,856,295 AAA
1,500,000 New York State Housing Finance Agency Insured Multi-Family Mortgage Housing Revenue
- Series 1992C, 6.50%, due 8/15/24 1,546,020 Aa AAA
3,400,000 New York State Housing Finance Agency (Phillips Village Project) - Series A,
7.75%, due 8/15/17 3,770,838 A
6,750,000 New York State Medical Care Facilities Finance Agency Revenue
(Hospital & Nursing Home FHA - Insured Mortgage - Series B), 6.60%, due 8/15/34 7,192,192 Aa
175,000 New York State Medical Care Facilities Mental Health Service,
7.30%, due 2/15/21 191,538 Baa1 BBB+
5,300,000 New York State Medical Care Facilities Finance Agency Revenue,
6.90%, due 8/15/34, AMBAC 5,869,803 Aaa AAA
6,950,000 New York State Medical Care Facilities Finance Agency Revenue,
(FHA - Insured Mortgage Project-1995 - Series C), 6.375%, due on 8/15/29 7,269,422 Aa AA
500,000 New York State Medical Care Facilities Finance Agency Revenue,
(New York Downtown Hospital - Series A), 6.70%, due 2/15/12 525,700 Baa BBB
2,600,000 New York State Medical Care Facilities Finance Agency Revenue,
(New York Downtown Hospital - Series A), 6.80%, due 2/15/20 2,754,570 Baa BBB
2,505,000 New York State Medical Care Facilities Finance Agency Revenue,
(FHA - Insured Mortgage Project - Series A), 6.50%, due 2/15/35 2,649,889 Aa AA
2,000,000 New York State Medical Care Facilities Finance Agency Revenue,
(Brookdale Hospital Medical Center - Series A), 6.80%, due 8/15/12 2,118,900 Baa BBB
2,550,000 New York State Medical Care Facilities Finance Agency Revenue,
(Brookdale Hospital Medical Center - Series A), 6.85%, due 2/15/17 2,711,849 Baa BBB
5,000,000 New York State Medical Care Facilities Finance Agency Revenue
FHA Insured Mortgage Project - Series D, 6.375%, due 02/15/35 5,245,700 Aa AA
- ------------- -----------
95,045,000 Total Municipal Bonds (Cost $94,802,181) 100,859,004
- ------------- -----------
<CAPTION>
Shares Market Value
------ ------------
Closed-End Funds (9.50%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 196,722 Intercapital New York Quality $ 2,262,303
131,825 Munivest New York Insured Fund 1,598,378
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
<TABLE>
<CAPTION>
Shares Market Value
------ ------------
Closed-End Funds (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 229,074 Muniyield New York Insured Fund II $ 3,121,133
5,000 Muniyield New York Insured Fund III 66,250
160,000 Muniyield New York Insured Fund 2,360,000
54,547 Taurus Muni New York Holdings 620,472
--------- -----------
777,168 Total Closed-End Funds (Cost $9,032,057) 10,028,536
--------- -----------
Total Investments (105.03%)(Cost $103,834,238+) 110,887,540
Liabilities in Excess of Cash and Other Assets (-5.03%) ( 5,308,453)
-----------
Net Assets(100.00%) $ 105,579,087
===========
+ Aggregate cost for federal income tax purposes is $103,854,498.
Aggregate unrealized appreciation and depreciation, based on cost
for federal income purposes, are $7,033,042 and $0.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
NOVEMBER 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Ratings
----------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ ------ ----------------
Municipal Bonds (85.05%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 125,000 Cape May County, New Jersey Industrial Pollution Control Financing Authority
Revenue - Atlantic City Electric Company Project A, MBIA, 7.20%, due 11/01/29 $ 143,267 Aaa AAA
70,000 Essex County, New Jersey Import Authority Revenue Refunding Bond - Orange
School District - Series A, MBIA, 6.95%, due 07/01/14 80,179 Aaa AAA
100,000 Irvington, New Jersey Housing & Mortgage Finance Authority, 6.50%, due 02/01/24 103,014 AAA
100,000 New Jersey Economic Development Authority - American Airline, 7.10%, due 11/01/31 107,074 Baa2 BB+
250,000 New Jersey Economic Development Authority, Economic Development Revenue -
Bancroft Incorporated Obligation Group, 6.05%, due 12/01/25, Connie Lee 259,735 AAA
150,000 New Jersey Economic Development Authority, Economic Development Revenue
Refunding - Burlington Coat Factory, LOC First Fidelity Bank, 6.125%, due 09/01/10 157,055 A1
150,000 New Jersey Economic Development Authority, Economic Development Revenue -
W.Y. Urban Holding Company, LOC NatWest Bank, Jersey City, 6.50%, due 06/01/15 158,312 AA-
100,000 New Jersey Economic Development Authority PSE&G, MBIA, 6.40%, due 05/01/32 106,897 Aaa AAA
100,000 New Jersey Economic Development Authority Water Facilities Revenue, FGIC, 6.875%
due 11/01/34 110,444 Aaa AAA
100,000 New Jersey Economic Development Authority AMT-Economic Growth - Series D,
LOC NatWest, 6.55%, due 08/01/14 105,244 AA-
85,000 New Jersey Health Care Facilities Financing Authority Refunding Revenue
Irvington General Hospital Issue - Series 1994, FHA, 6.40%, due 08/01/25 89,007 AAA
125,000 New Jersey Health Care Facilities Financing Authority Revenue Bond - General
Hospital Center at Passaic, FSA, 6.75%, due 07/01/19 139,790 Aaa AAA
100,000 New Jersey Health Care Facilities Financing Authority Revenue Bond - Monmouth
Medical Center Issue - Series C, CGIC, 6.25%, due 07/01/24 106,282 Aaa AAA
100,000 New Jersey Health Care Facilities Financing Authority Revenue Bond - Newark
Beth Israel Medical Center, FSA, 6.00%, due 07/01/24 104,048 Aaa AAA
100,000 New Jersey State Educational Facilities Authority Revenue Bond - New Jersey
Institute Tech. Issue - Series A, MBIA, 6.00%, due 07/01/24 104,538 Aaa AAA
125,000 New Jersey State Housing & Mortgage Finance Agency Multi-Family Housing Revenue
Refunding - Presidential Plaza FHA-1, 7.00%, due 05/01/30 132,215 AAA
300,000 New Jersey State Housing & Mortgage Finance Agency Multi-Family Housing
Revenue - Series A, AMBAC, 6.05%, due 11/01/20 304,929 Aaa AAA
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
<TABLE>
<CAPTION>
Ratings
----------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ ------ ----------------
Municipal Bonds (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 125,000 New Jersey State Housing & Mortgage Finance Agency Revenue Housing - Series A,
6.95%, due 11/01/13 $ 133,091 A+
150,000 New Jersey State Housing & Mortgage Finance Agency Revenue AMT - Home
Buyers - Series O, MBIA, 6.35%, due 10/01/27 154,773 Aaa AAA
140,000 Newark, New Jersey Housing Finance Corporation Mortgage Revenue,
Refunding-SEC 8-FHA-Manor Apts-A, 7.50%, due 02/15/24 154,031 AAA
100,000 Puerto Rico Housing Bank & Finance Agency Single Family Mortgage Revenue AMT - Afford
Housing Mortgage - Portfolio I, 6.25%, GNMA/FNMA/FHLMA College, due 04/01/29 101,860 Aaa AAA
--------- ---------
2,695,000 Total Municipal Bonds (Cost $2,683,552) 2,855,785
--------- ---------
<CAPTION>
Shares Market Value
------ ------------
Closed-End Funds (10.21%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 14,100 Munivest New Jersey Fund $ 170,962
12,500 Muniyield New Jersey Fund 171,875
--------- ---------
26,600 Total Closed-End Funds (Cost $338,580) 342,837
--------- ---------
Total Investments (95.26%)(Cost $ 3,022,132+) 3,198,622
Cash and Other Assets, Net of Liabilities (4.74%) 159,261
---------
Net Assets(100.00%) $ 3,357,883
=========
+ Aggregate cost for federal income tax purposes is identical.
Aggregate unrealized appreciation and depreciation are $176,490
and $0.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
NOVEMBER 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Ratings
----------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ ------ ----------------
MUNICIPAL BONDS (91.25%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 150,000 All Saints Health System Taxable Bonds
9.00%, due 8/15/24, MBIA $ 169,359 Aaa AAA
100,000 Buffalo New York, GO, AMBAC Taxable Bonds
Series F, 9.05%, due 2/01/15 109,166 Aaa AAA
285,000 California Housing Finance MHRB Taxable II
Series C, 8.10%, due 2/01/37 292,946 Aaa AAA
2,000,000 Compton California Community Redevelopment Agency
Capital Appreciation Tax Allocation - Series C 0.00%, due 8/01/22, CGIC 288,020 Aaa AAA
150,000 Connecticut Health and Educational Maefair Health, Taxable Bonds
9.20%, due 11/01/24 180,144 A1 AA-
125,000 Connecticut Health and Educational Facility Authority
Laurelwood Rehab & Skilled Nursing Project, 9.36%, due 11/01/24 146,104 A1 AA-
150,000 Connecticut Health and Educational Facilities Authority Taxable Bonds,
Nursing Home Program Issue - Series 1994, 8.90%, due 11/01/24 174,854 A1 AA-
255,000 Connecticut Housing Finance Authority Housing Mortgage Finance
Program 1993 - Series G, 9.25%, due 5/15/27 283,601 Aa AA
100,000 Connecticut Development Authority Tax - Subseries B1
8.50%, due 8/15/14 104,262 A+
125,000 Conyers GA Water & Sewer Revenue Bonds, AMBAC, 8.75%, due 7/01/15 139,024 Aaa AAA
250,000 Cuyahoga County Ohio Economic Development Revenue
Taxable Gateway Arena PJ-Series A 8.625%, due 6/01/22 274,463 A
150,000 Idaho Housing Agency MFB, 8.50%, due 7/01/09 155,487 A
150,000 Illinois Housing AMBAC, 8.64%, due 12/01/21 153,323 Aaa AAA
2,180,000 Kern County California Pension Obligation
Capital Appreciation Taxable, 0.00% due 8/15/18, MBIA 414,069 Aaa AAA
325,000 Maryland State Community Development Administration MHRB Taxable Bonds
Department Housing & Community Development - F
9.10%, due 5/15/10 351,903 Aa
150,000 Memorial Health System Revenue Bond, MBIA, 8.375%, due 10/01/20 163,473 Aaa AAA
200,000 Michigan State Housing Development Authority Multi-Family
Taxable Bonds - Series A 8.30%, due 11/01/15 210,930 Aaa AAA
190,000 Minnesota State Housing Finance Agency Taxable Bonds
Rental Housing - Series A
8.70%, due 8/01/22 196,540 A+
60,000 Minnesota State Housing - Series B, 8.00%, due 2/01/18 61,555 A+
50,000 Minnesota State Housing Finance Agency - Taxable-Single Family Mortgage-G
8.05%, due 1/01/21 51,471 A+
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
<TABLE>
<CAPTION>
Ratings
----------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ ------ ----------------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 100,000 New Hampshire State Housing and Finance Authority Single Family Mortgage
Revenue Bonds, - Series 1995-C, 9.40%, due 7/01/14 $ 107,859 Aa
240,000 New Jersey State Housing and Mortgage Finance Agency Rental Housing
Revenues - Taxable Bonds, - Series E, 8.95%, due 11/01/12 258,682 A+
180,000 New York, New York - Series D, 9.625%, due 8/01/10 195,995 Baa1 BBB+
40,000 New York, New York Taxable Bonds, 9.90%, due 2/01/10 45,856 Baa1 BBB+
250,000 New York State Environment Facilities Corp. State Service Contract Revenue
Series A 9.625%, due 3/15/21 285,447 Baa1 BBB
300,000 New York State Housing Finance Agency , 8.25%, due 5/15/35 308,943 AAA
110,000 New York State Housing Finance Agency Service Contract Obligation
Revenue - Series B, 8.60%, due 3/15/04 121,275 Baa1 BBB
100,000 Pittsburgh Pennsylvania Urban Redevelopment
Authority, CGIC, 9.07%, due 9/01/14 117,016 Aaa AAA
300,000 Sacramento County, California, 0.00%, due 8/15/21, MBIA 250,836 Aaa AAA
120,000 Southeastern Pennsylvania Trans Authority, FGIC, 8.75%, due 3/01/20 136,501 Aaa AAA
300,000 Tampa Florida Sports Authority Taxable - LN - Arena
PJ Hillsboro, 8.07%, due 10/01/26, MBIA 320,184 Aaa AAA
375,000 Texas State Department Housing & Community
Taxable Mortgage - Series C1, 7.76%, due 9/01/17, MBIA 380,122 Aaa AAA
700,000 United Nations Development Corporation, 8.80%, due 7/01/26 747,712 A
365,000 Virginia State Housing Development Authority Multi-family
Taxable Bonds - Series A, 8.125% due 11/01/15 372,774 AA AA+
350,000 Wisconsin Housing & Economic Development Authority Home Ownership RB
Taxable Bonds - Series H, 7.875% due 3/01/26 356,513 AA AA
---------- ---------
10,975,000 Total Municipal Bonds (Cost $7,435,755) 7,926,409
---------- ---------
<CAPTION>
Shares Market Value
------ ------------
Closed-End Funds (9.51%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 60,000 Blackrock Income Trust $ 405,000
46,761 Hyperion Total Return 420,849
--------- ---------
106,761 Total Closed-End Funds (Cost $ 834,911) 825,849
--------- ---------
Total Investments (100.76%)(Cost $8,270,666+) 8,752,258
Liabilities in Excess of Cash and Other Assets (-0.76%) ( 66,301)
---------
Net Assets(100.00%) $ 8,685,957
=========
+ Aggregate cost for federal income tax purposes is $8,276,728.
Aggregate unrealized appreciation and depreciation, based on cost
for federal income tax purposes, are $493,733 and $18,203.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Lebenthal New York Lebenthal New York Lebenthal New Jersey Lebenthal Taxable
Tax Free Municipal Municipal Municipal
Money Fund Bond Fund Bond Fund Bond Fund
------------------ ------------------ -------------------- --------------
ASSETS
Investment in securities
at value (cost $57,782,561, $103,834,238,
<S> <C> <C> <C> <C>
$3,022,132 and 8,270,666) $ 57,782,561 $ 110,887,540 $ 3,198,622 $ 8,752,258
Receivables:
Securities sold............. 1,000,000 -- -- --
Capital shares sold......... -- 1,455,436 106,061 335,357
Interest.................... 288,170 1,945,872 49,240 127,122
Dividends................... -- -- -- 137
Due from Manager............ -- -- 26,026 11,642
Deferred organization expenses. 663 8,646 23,257 18,764
----------- ----------- --------- ---------
Total assets............. 59,071,394 114,297,494 3,403,206 9,245,280
----------- ----------- --------- ---------
<CAPTION>
LIABILITIES
Payables:
<S> <C> <C> <C> <C>
Securities purchased........ -- 6,394,753 -- --
Capital shares redeemed..... -- 172,820 -- --
Dividends declared.......... 65,570 315,967 10,698 33,072
Due to Administrator........ -- 10,534 -- --
Due to Distributor.......... 12,649 21,068 -- --
Due to Manager.............. 12,649 19,989 -- --
Due to Custodian............ 170,002 1,737,355 3,522 488,494
Accrued expenses and other liabilities 98,493 45,921 31,103 37,757
----------- ----------- --------- ---------
Total liabilities........ 359,363 8,718,407 45,323 559,323
----------- ----------- --------- ---------
<CAPTION>
NET ASSETS $ 58,712,031 $ 105,579,087 $ 3,357,883 $ 8,685,957
========== =========== ========= =========
<S> <C> <C> <C> <C>
Shares outstanding (Note 3).... 58,719,185 13,216,773 500,916 1,203,348
Net asset value, and redemption
price per share........... $ 1.00 $ 7.99 $ 6.70 $ 7.22
Maximum offering price per share* $ 1.00 $ 8.37 $ 7.02 $ 7.56
* The sales charge on the New York Bond Fund, the New Jersey Bond Fund and
the Taxable Bond Fund is 4.5% of the offering price on a single sale of
less than $50,000, reduced on sales of $50,000 or more and certain other
sales. There is no sales charge on the Money Fund.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
STATEMENTS OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Lebenthal New York Lebenthal New York Lebenthal New Jersey Lebenthal Taxable
Tax Free Municipal Municipal Municipal
Money Fund Bond Fund Bond Fund Bond Fund
------------------ ------------------ -------------------- -----------------
INVESTMENT INCOME
<S> <C> <C> <C> <C>
Income:
Interest..................... $ 2,200,657 $ 5,360,054 $ 136,441 $ 345,428
Dividends.................... -- 599,835 12,912 35,287
--------- --------- ------- --------
Total income.............. 2,200,657 5,959,889 149,353 380,715
--------- --------- ------- --------
Expenses: (Note 2)
Management fee............... 144,051 214,981 5,987 11,647
Distribution fee............. 144,051 224,979 5,987 11,647
Administration fee........... -- 112,489 2,994 5,824
Shareholder servicing fee.... 144,051 -- -- --
Custodian fees............... 8,210 11,782 1,997 2,560
Shareholder servicing and
related shareholder expenses 217,466 102,568 17,604 18,033
Interest..................... -- 89,673 -- --
Legal, compliance and filing fees 34,361 60,889 9,903 12,999
Audit and accounting fees.... 63,093 44,597 45,205 50,074
Director's fees.............. 4,918 9,109 256 509
Amortization of organization expenses 10,964 15,319 7,746 6,249
Other........................ 5,607 4,376 1,081 1,106
--------- --------- --------- ---------
Total expenses.............. 776,772 890,762 98,760 120,648
Less: Reimbursement of expenses (Note 2) -- -- ( 69,431) ( 63,701)
Fees paid indirectly.. ( 1,278) -- -- --
Fees waived........... (144,051) -- ( 14,968) ( 29,118)
--------- --------- --------- ---------
Net expenses................ 631,443 890,762 14,361 27,829
--------- --------- --------- ---------
Net investment income.......... 1,569,214 5,069,127 134,992 352,886
--------- --------- --------- ---------
<CAPTION>
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C> <C> <C> <C>
Net realized gain (loss) on investments ( 3,238) 1,283,011 36,790 10,392
Change in unrealized appreciation
(depreciation) of investments -- 11,953,235 221,012 585,669
--------- ---------- -------- ---------
Net realized and unrealized
gain (loss) on investments ( 3,238) 13,236,246 257,802 596,061
--------- ---------- -------- ---------
Increase (decrease) in net
assets from operations.... $1,565,976 $ 18,305,373 $ 392,794 $ 948,947
========= ========== ======== ========
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED NOVEMBER 30, 1995 AND 1994
===============================================================================
<TABLE>
<CAPTION>
Lebenthal New York Tax Free Lebenthal New York Municipal
Money Fund Bond Fund
---------------------------------- ----------------------------
1995 1994 1995 1994
--------------- ------------- -------------- --------
INCREASE (DECREASE) IN NET ASSETS
Operations:
<S> <C> <C> <C> <C>
Net investment income............. $ 1,569,214 $ 918,497 5,069,127 $ 4,417,708
Net realized gain (loss) on
investments................... ( 3,238) 910 1,283,011 ( 4,604,120)
Change in unrealized appreciation. -- -- 11,953,235 ( 8,260,378)
----------- --------- ---------- -----------
Increase (decrease)
in net assets from operations. 1,565,976 919,407 18,305,373 ( 8,446,790)
Dividends from net investment income.. ( 1,569,214)* ( 918,497)* ( 5,069,127)* ( 4,417,708)*
Distributions from net realized gains
on investments................ -- -- -- ( 365,144)
Capital share transactions (Note 3)... 10,865,643 237,828 17,016,993 7,828,771
---------- ---------- ----------- -----------
Total increase (decrease)..... 10,862,405 238,738 30,253,239 ( 5,400,871)
Net assets:
Beginning of year................. 47,849,626 47,610,888 75,325,848 80,726,719
---------- ---------- ----------- -----------
End of year....................... $ 58,712,031 $ 47,849,626 $105,579,087 $ 75,325,848
========== ========== =========== ===========
* Designated as exempt interest dividends for federal income tax purposes.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEARS ENDED NOVEMBER 30, 1995 AND 1994
===============================================================================
<TABLE>
<CAPTION>
Lebenthal New Jersey Municipal Lebenthal Taxable Municipal
Bond Fund Bond Fund
---------------------------------- -----------------------------
1995 1994 1995 1994
--------------- ------------- ------------- -----------
INCREASE (DECREASE) IN NET ASSETS
Operations:
<S> <C> <C> <C> <C>
Net investment income............. $ 134,992 $ 87,979 $ 352,886 $ 170,931
Net realized gain (loss) on
investments................... 36,790 ( 315,519) 10,392 ( 246,621)
Change in unrealized appreciation. 221,012 ( 44,522) 585,669 ( 104,077)
---------- ----------- ---------- ----------
Increase (decrease)
in net assets from operations. 392,794 ( 272,062) 948,947 ( 179,767)
Dividends from net investment income.. ( 134,992 )* ( 87,979 )* ( 352,886) ( 170,931)
Distributions from net realized gains
on investments................ -- -- -- --
Capital share transactions (Note 3)... 954,934 2,505,188 5,099,617 3,340,977
---------- ----------- ---------- ----------
Total increase (decrease)........ 1,212,736 2,145,147 5,695,678 2,990,279
Net assets:
Beginning of year................ 2,145,147 -0- 2,990,279 -0-
---------- ---------- ---------- ----------
End of year...................... $ 3,357,883 $ 2,145,147 $ 8,685,957 $ 2,990,279
========== ========== ========== ==========
* Designated as exempt interest dividends for federal income tax purposes.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
1. Summary of Accounting Policies
Lebenthal Funds, Inc. (the "Company") is registered under the Investment Company
Act of 1940 as an open-end management investment company consisting of Lebenthal
New York Tax Free Money Fund (the "Money Fund"), Lebenthal New York Municipal
Bond Fund (the "New York Bond Fund"), Lebenthal New Jersey Municipal Bond Fund
(the "New Jersey Bond Fund") and Lebenthal Taxable Municipal Bond Fund (the
"Taxable Bond Fund"). Its financial statements are prepared in accordance with
generally accepted accounting principles for investment companies as follows:
a) Valuation of Securities -
For the Money Fund, investments are valued at amortized cost. Under this
valuation method, a portfolio instrument is valued at cost and any discount
or premium is amortized on a constant basis to the maturity of the
instrument. The maturity of variable rate demand instruments is deemed to
be the longer of the period required before the Fund is entitled to receive
payment of the principal amount or the period remaining until the next
interest rate adjustment.
For the New York Bond Fund, the New Jersey Bond Fund and the Taxable Bond
Fund, municipal obligations are stated on the basis of valuations provided
by a pricing service approved by the Board of Directors, which uses
information with respect to transactions in bonds, quotations from bond
dealers, market transactions in comparable securities and various
relationships between securities in determining value. The valuations
provided by such pricing service will be based upon fair market value
determined most likely on the basis of the factors listed above. If a
pricing service is not used, municipal obligations will be valued at quoted
prices provided by municipal bond dealers. Non-tax exempt securities for
which transaction prices are readily available are stated at market value
(determined on the basis of the last reported sales price, or a similar
means). Short-term investments that will mature in 60 days or less are
stated at amortized cost, which approximates market value. All other
securities and assets are valued at their fair market value as determined
in good faith by the Board of Directors.
b) Federal Income Taxes -
It is the policy of each Fund to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its tax-exempt and taxable income to its shareholders.
Therefore, no provision for Federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
d) Organizational Expenses -
The New Jersey Bond Fund and the Taxable Bond Fund are amortizing
organization expenses by straight-line charges against income over the
period ending November 30, 1998.
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
Summary of Accounting Policies (Continued)
e) General -
Securities transactions are recorded on a trade date basis. Interest income
is accrued as earned and dividend income is recorded on the ex-dividend
date. Premiums and original issue discounts on securities purchased by the
New York Bond Fund, the New Jersey Bond Fund and the Taxable Bond Fund are
amortized over the life of the respective securities. Realized gains and
losses from securities transactions are recorded on the identified cost
basis.
2. Investment Advisory Fees and Other Transactions with Affiliates
For the Money Fund:
Under the Management Contract, the Money Fund pays an investment management fee
to Reich & Tang Asset Management L.P. (its Manager), equal to .25% of the Fund's
average daily net assets up to $100 million and .20% of such assets in excess of
$100 million.
Pursuant to a Distribution Plan adopted under Securities and Exchange Commission
Rule 12b-1, the Fund and Lebenthal & Co., Inc. (its Distributor) have entered
into a Shareholder Servicing and Administration Agreement under which the
Distributor receives from the Fund a fee equal to .25% of the Fund's average
daily net assets up to $100 million and .20% of such assets in excess of $100
million. The Distributor has agreed to reimburse the Fund for its expenses
(exclusive of interest, taxes, brokerage, and extraordinary expenses) which in
any year exceed the limits on investment company expenses prescribed by any
state in which the Fund's shares are qualified for sale. No such reimbursement
was required for the year ended November 30, 1995.
For the New York Bond Fund, the New Jersey Bond Fund and the Taxable Bond Fund:
Under the Management Contract the Funds pay a management fee to Lebenthal Asset
Management, Inc. (its Manager), equal to .25% of the Fund's average daily net
assets up to $50 million; .225% of such assets between $50 million and $100
million; and .20% of such assets in excess of $100 million. The Manager
supervises all aspects of the Fund's operations. The Manager has agreed to
reimburse the Fund for its expenses (exclusive of interest, taxes, brokerage,
and extraordinary expenses) which in any year exceed the limits on investment
company expenses prescribed by any state in which the Fund's shares are
qualified for sale. For the year ended November 30, 1995, the Manager
voluntarily waived management fees of $5,987 and $11,647 for the New Jersey Bond
Fund and the Taxable Bond Fund, respectively. In addition, although not required
to do so, the Manager has agreed to reimburse expenses for the New Jersey Bond
Fund and the Taxable Bond Fund amounting to $69,431 and $63,701, respectively.
Pursuant to the Administrative Services Agreement, the Fund pays Reich & Tang
Asset Management L.P., (its Administrator) a fee equal to .125% of the Fund's
average daily net assets up to $100 million and .10% of such assets in excess of
$100 million. For the year ended November 30, 1995, the Administrator
voluntarily waived administration fees for the New Jersey Bond Fund and the
Taxable Bond Fund of $2,994 and $5,824, respectively.
For all Funds:
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the Investment
Company Act of 1940, the Company and Lebenthal & Co., Inc. (the Distributor)
have entered into a Distribution Agreement. For its services under the
Distribution Agreement, the Distributor receives from each Fund a fee equal to
.25% of the Fund's average daily net assets. For the year ended November 30,
1995, the Distributor voluntarily waived fees of $144,051, $5,987 and $11,647
from the Money Fund, the New Jersey Bond Fund and the Taxable Bond Fund,
respectively. There were no additional expenses borne by the Company pursuant to
the Distribution Plan.
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
Investment Advisory Fees and Other Transactions with Affiliates (Continued)
Lebenthal & Co., Inc. retained commissions of $535,793 from the sales of shares
of the New York Bond, the New Jersey Bond Fund and the Taxable Bond Fund.
Included in the Statements of Operations under the caption "Shareholder
servicing and related shareholder expenses" are fees of $135,570, $13,347, $424
and $537 for the Money Fund, the New York Bond Fund, the New Jersey Bond Fund
and the Taxable Bond Fund, respectively, paid to Fundtech Services, L.P., an
affiliate of Reich & Tang Asset Management L.P. as servicing agent to the Funds.
Included in the Statements of Operations of the Money Fund under the caption
"Custodian fees" are custodian expense offsets of $1,278.
Fees are paid to Directors of the Company who are unaffiliated with the
Managers, the Distributor or the Administrator on the basis of $2,000 per annum
plus $500 per meeting attended.
3. Capital Stock
At November 30, 1995, there were 20,000,000,000 shares of $.001 par value stock
authorized and capital paid in for the Money Fund, the New York Bond Fund, the
New Jersey Bond Fund and the Taxable Bond Fund amounted to $58,719,185, and
$101,846,956, $3,460,122 and $8,440,594, respectively. Transactions in capital
stock were as follows:
<TABLE>
<CAPTION>
Lebenthal New York Tax Free Money Fund Lebenthal New York Tax Free Money Fund
Year Ended Year Ended
November 30, 1995 November 30, 1994
-------------------------------------- --------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold.................................. 270,883,569 $ 270,883,569 181,240,729 $ 181,240,729
Issued on reinvestment of dividends... 1,499,794 1,499,794 870,979 870,979
Redeemed.............................. (261,517,720) (261,517,720) (181,873,880) (181,873,880)
----------- ----------- ----------- -----------
Net increase (decrease)............... 10,865,643 $ 10,865,643 237,828 $ 237,828
=========== =========== =========== ===========
<CAPTION>
Lebenthal New York Municipal Bond Fund Lebenthal New York Municipal Bond Fund
Year Ended Year Ended
November 30, 1995 November 30, 1994
-------------------------------------- --------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold.................................. 3,626,833 $ 27,728,133 3,069,379 $ 23,445,492
Issued on reinvestment of dividends... 584,439 4,424,986 528,597 3,988,593
Redeemed.............................. ( 2,011,809) ( 15,136,126) ( 2,631,314) ( 19,605,314)
---------- ----------- ---------- -----------
Net increase (decrease)............... 2,199,463 $ 17,016,993 966,662 $ 7,828,771
========== =========== ========== ===========
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
3. Capital Stock (Continued)
<TABLE>
<CAPTION>
Lebenthal New Jersey Municipal Bond Fund Lebenthal New Jersey Municipal Bond Fund
Year Ended Year Ended
November 30, 1995 November 30, 1994
---------------------------------------- ----------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold.................................. 320,760 $ 2,060,689 378,649 $ 2,606,421
Issued on reinvestment of dividends... 18,321 118,158 9,222 59,421
Redeemed.............................. ( 198,975) ( 1,223,913) ( 27,061) ( 160,654)
-------- ---------- -------- --------
Net increase (decrease)............... 140,106 $ 954,934 360,810 $ 2,505,188
======== =========== ======== =========
</TABLE>
<TABLE>
<CAPTION>
Lebenthal Taxable Municipal Bond Fund Lebenthal Taxable Municipal Bond Fund
Year Ended Year Ended
November 30, 1995 November 30, 1994
------------------------------------- -------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold.................................. 928,692 $ 6,373,549 502,012 $ 3,537,995
Issued on reinvestment of dividends... 39,468 270,713 12,689 85,390
Redeemed.............................. ( 236,166) ( 1,544,645) ( 43,347) ( 282,408)
-------- ---------- -------- ---------
Net increase (decrease)............... 731,994 $ 5,099,617 471,354 $ 3,340,977
======== ========== ======== =========
</TABLE>
4. Investment Transactions
Purchases of investment securities for the New York Bond Fund, the New Jersey
Bond Fund, and the Taxable Bond Fund, other than short term obligations, were
$167,258,181, $3,235,046 and $9,344,665, respectively. Sales of investment
securities for the New York Bond Fund, the New Jersey Bond Fund and the Taxable
Bond Fund, other than short term obligations, were $142,019,560, $1,459,033 and
$4,078,655, respectively. Accumulated undistributed realized gains(losses) at
November 30, 1995 amounted to ($7,154), ($3,321,171), ($278,729) and ($236,229)
for the Money Fund, the New York Bond Fund, the New Jersey Bond Fund and the
Taxable Bond Fund, respectively. Tax basis capital losses which may be carried
forward to offset future capital gains through November 30, 2002 amounted to
($3,916), ($3,290,709), ($278,729) and ($230,167) for the Money Fund, the New
York Bond Fund, the New Jersey Bond Fund, and the Taxable Bond Fund,
respectively and ($3,238) through November 30, 2003 for the Money Fund.
5. Concentration of Credit Risk
The Money Fund and the New York Bond Fund invest primarily in obligations of
political subdivisions of the state of New York and the New Jersey Bond Fund
invests primarily in obligations of political subdivisions of the state of New
Jersey and accordingly these funds are subject to the risk associated with the
non-performance of such issuers. Approximately 79% of the investments of the
Money Fund are further secured, as to principal and interest, by letters of
credit issued by financial institutions. The Fund maintains a policy of
monitoring its exposure by reviewing the creditworthiness of the issuers, as
well as that of the financial institutions issuing the letters of credit, and by
limiting the amount of holdings with letters of credit from one financial
institution.
6. Subsequent Event
Effective December 11, 1995, the Money Fund stopped offering the sale of its
shares and transferred all of its net assets to an unaffiliated investment
company, Alliance Municipal Trust-New York Portfolio.
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
7. Selected Financial Information:
<TABLE>
<CAPTION>
Lebenthal New York
Tax Free Money Fund
-------------------------------------------------------------------------------------------
Year Year Year Year December 24, 1990
Ended Ended Ended Ended (Inception) to
November 30, 1995 November 30, 1994 November 30, 1993 November 30, 1992 November 30, 1991
----------------- ----------------- ----------------- ----------------- -----------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- -------- --------
Income from investment operations:
Net investment income............. .027 0.018 0.016 0.025 0.029
Net realized and unrealized
gain on investments............ -- -- -- -- --
-------- -------- ------- -------- --------
Total from investment operations... .027 0.018 0.016 0.025 0.029
-------- -------- ------- -------- --------
Less distributions:
Dividends from net investment income ( .027) ( 0.018) ( 0.016) ( 0.025) ( 0.029)
Distributions from net realized
gain on investments............ -- -- -- -- --
-------- -------- ------- -------- --------
Total distributions................ ( .027) ( 0.018) ( 0.016) ( 0.025) ( 0.029)
-------- --------- -------- --------- --------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========= ======== ========= ========
Total Return
(without deduction of sales load) 2.77% 1.82% 1.66% 2.54% 3.54%*
Ratios/Supplemental Data
Net assets, end of period (000).... $ 58,712 $ 47,850 $ 47,611 $ 50,941 $ 45,618
Ratios to average net assets:
Expenses......................... 1.10%++ 0.99%++ 0.89%++ 0.89%++ 0.58%*++
Net investment income............ 2.72%++ 1.80%++ 1.65%++ 2.48%++ 3.74%*++
* Annualized. + Not Annualized
++ Management, shareholder servicing, and distribution fees for the Money Fund
of .25%, .25%, .34%, .34% and .66% of average net assets, respectively,
were waived during each period. For the New York Bond Fund advisory,
management, administration, and distribution fees of .38%, .58%, .62% and
.775% of average net assets, respectively, were waived during each period;
and expenses were reimbursed equivalent to .08%, .34%, .65% and 1.78% of
average net assets. For the New Jersey Bond Fund advisory, management,
administration and distribution fees of .63% and .68% of average net
assets, respectively, were waived during the period and expenses were
reimbursed equivalent to 2.90% and 3.55% of average net assets,
respectively. For the Taxable Bond Fund advisory, management,
administration and distribution fees of .63% and .68% of average net
assets, respectively, were waived during the period; and expenses were
reimbursed equivalent to 1.36% and 2.32% of average net assets,
respectively.
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
<TABLE>
<CAPTION>
Lebenthal New York
Municipal Bond Fund
--------------------------------------------------------------------------------------------
Year Year Year Year June 24, 1991
Ended Ended Ended Ended (Inception) to
November 30, 1995 November 30, 1994+++ November 30, 1993 November 30, 1992 November 30, 1991
----------------- -------------------- ----------------- ----------------- -----------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 6.84 $ 8.03 $ 7.54 $ 7.19 $ 7.16
------- ------- ------ -------- ------
Income from investment operations:
Net investment income........... 0.43 0.41 0.44 0.47 0.14
Net realized and unrealized
gain/(loss) on investments . 1.15 ( 1.15) 0.50 0.35 0.03
----- ----- ----- ----- -----
Total from investment operations 1.58 ( .74) 0.94 0.82 .17
----- ----- ----- ----- -----
Less distributions:
Dividends from net investment income ( 0.43) ( 0.41) ( 0.44) ( 0.47) ( 0.14 )
Distributions from net realized
gain on investments......... -- ( 0.04) ( 0.01) -- --
----- ----- ------ ---- ------
Total distributions............. ( 0.43) ( 0.45) ( 0.45) ( 0.47) ( 0.14)
----- ----- ------ ----- ------
Net asset value, end of period.. $ 7.99 $ 6.84 $ 8.03 $ 7.54 $ 7.19
====== ====== ====== ====== ======
Total Return
(without deduction of sales load) 23.56% ( 9.62%) 12.63% 11.68 2.36%+
Ratios/Supplemental Data
Net assets, end of period (000). $105,579 $75,326 $80,727 $39,350 $14,549
Ratios to average net assets:
Expenses...................... 0.99% 0.64%++ 0.20%++ 0.17%++ 0%*++
Net investment income......... 5.63% 5.44%++ 5.42%++ 6.08%++ 6.08%*++
Portfolio turnover.............. 148.88% 192.91% 7.88% 8.14% 0%
Bank loans
Amount outstanding at end of period (000) $1,737 -- -- -- --
Average amount of bank loans outstanding
during the period (000) 1,857 -- -- -- --
Average number of shares outstanding
during the period (000) 11,866 -- -- -- --
Average amount of debt per share
during the period 0.16 -- -- -- --
+++ Effective August 15, 1994, the investment advisor changed to Lebenthal Asset Management, Inc.
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
7. Selected Financial Information: (Continued)
<TABLE>
<CAPTION>
Lebenthal New Jersey Lebenthal Taxable
Municipal Bond Fund Municipal Bond Fund
---------------------------------------- -------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
November 30, 1995 November 30, 1994+++ November 30, 1995 November 30, 1994+++
----------------- ---------------------- ---------------------- -----------------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 5.95 $ 7.16 $ 6.34 $ 7.16
------ ------ --------- -----
Income from investment operations:
Net investment income.............. 0.36 0.32 0.53 0.44
Net realized and unrealized
gain (loss) on investments .... 0.75 ( 1.21) 0.88 ( 0.82)
----- ----- ------ -----
Total from investment operations... 1.11 ( 0.89) 1.41 ( 0.38)
----- ----- ------- -----
Less distributions:
Dividends from net investment income ( 0.36) ( 0.32) ( 0.53) ( 0.44)
Distributions from net realized
gain on investments............ -- -- -- --
------ ------ ----- -----
Total distributions................ ( 0.36) ( 0.32) ( 0.53) ( 0.44)
----- ----- ----- -----
Net asset value, end of period..... $ 6.70 $ 5.95 $ 7.22 $ 6.34
====== ====== ====== ======
Total Return
(without deduction of sales load) 19.10% ( 12.70%) 23.11% ( 5.45%)
Ratios/Supplemental Data
Net assets, end of period (000).... $3,358 $2,145 $8,686 $2,990
Ratios to average net assets:
Expenses......................... 0.60%++ 0.60%++ .60%++ 0.60%++
Net investment income............ 5.64% 4.97%++ 7.57%++ 6.74%++
Portfolio turnover................. 61.69% 291.60% 84.74% 93.73%
* Annualized + Not Annualized
++ Management, shareholder servicing, and distribution fees for the Money Fund
of .25%, .25%, .34%, .34% and .66% of average net assets, respectively,
were waived during each period. For the New York Bond Fund advisory,
management, administration, and distribution fees of .38%, .58%, .62% and
.775% of average net assets, respectively, were waived during each period;
and expenses were reimbursed equivalent to .08%, .34%, .65% and 1.78% of
average net assets. For the New Jersey Bond Fund advisory, management,
administration and distribution fees of .63% and .68% of average net
assets, respectively, were waived during the period and expenses were
reimbursed equivalent to 2.90% and 3.55% of average net assets,
respectively. For the Taxable Bond Fund advisory, management,
administration and distribution fees of .63% and .68% of average net
assets, respectively, were waived during the period; and expenses were
reimbursed equivalent to 1.36% and 2.32% of average net assets,
respectively.
+++ Effective August 15, 1994, the investment advisor changed to Lebenthal
Asset Management, Inc.
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
INDEPENDENT AUDITOR'S REPORT
===============================================================================
The Board of Directors and Shareholders
Lebenthal Funds, Inc.
We have audited the accompanying statements of assets and liabilities and the
statements of investments of Lebenthal New York Tax Free Money Fund, Lebenthal
New York Municipal Bond Fund, Lebenthal New Jersey Municipal Bond Fund, and
Lebenthal Taxable Municipal Bond Fund, series of Lebenthal Funds, Inc., as of
November 30, 1995, and the related statements of operations, the statements of
changes in net assets and the selected financial information for each of the
periods indicated in the accompanying financial statements. These financial
statements and selected financial information are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and selected financial information 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 selected
financial information are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amount and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of November 30, 1995, by correspondence with the custodian and brokers.
An audit also includes assessing the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and selected financial information
referred to above present fairly, in all material respects, the financial
position of the Lebenthal New York Tax Free Money Fund, Lebenthal New York
Municipal Bond Fund, Lebenthal New Jersey Municipal Bond Fund and Lebenthal
Taxable Municipal Bond Fund, series of Lebenthal Funds, Inc. as of November 30,
1995, the results of their operations, the changes in their net assets and the
selected financial information for the periods indicated, in conformity with
generally accepted accounting principles.
/S/ McGladrey & Pullen, LLP
New York, New York
December 29, 1995
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
This report is submitted for the general information of the shaerholders of the
Fund. It is not authorized for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective prospectus, which includes
information regarding the Fund's objectives and policies, experience of its
management, marketability of shares, and other information.
- -------------------------------------------------------------------------------
Lebenthal Funds, Inc.
120 Broadway
New York, New York 10271
(212) 425-6116
Distributor and
Shareholder Servicing Agent
Lebenthal & Co., Inc.
120 Broadway
New York, New York 10271
[Cover Graphic Omitted}
