LEBENTHAL FUNDS, INC.
SEMI-ANNUAL REPORT
MAY 31, 1997
(UNAUDITED)
LEBENTHAL FUNDS, INC.
120 BROADWAY, NEW YORK, NY 10271
212-425-6116
OUTSIDE NYC TOLL FREE 1-800-221-5822
_______________________________________________________________________________
Dear Shareholder:
The Lebenthal bond funds continue to do very well versus their peer funds. For
rolling twelve-month periods, for the 26 months ended May 31, 1997, of the 91
New York funds followed by Lipper Analytical Services, Inc. (Lipper), the
$122.4 million Lebenthal New York Fund was the best performing fund for 14
months, the second best performing fund for 5 months, the third best for 1
month, and the fourth best for 2 months.
The total return statistics of the Lebenthal funds for the year ended May 31,
1997, were: 8.99% for the New York Fund, 9.04% for the New Jersey Fund, and
9.31% 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 June 1, 1996, reinvested the monthly dividends, and
sold on May 31, 1997, would have offset the full sales charge and still have
received $1,035.54 from the New York Fund, $1,040.90 from the New Jersey Fund,
and $1,044.30 from the Taxable Municipal Fund.
The performance records of the $5.2 million New Jersey and $14.0 million
Taxable Municipal funds relative to their peers have also been excellent. For
rolling twelve-month periods, for the 12 months ended May 31 that the Lebenthal
New Jersey Fund has been followed by Lipper, it was ranked #1 for 5 months and
#2 for 2 months--out of 55 peer funds. Again, for rolling twelve-month periods,
for the 12 months that the Taxable Municipal Bond Fund has been followed by
Lipper, out of the 122 funds listed as being peer funds, it was ranked in the
top quartile nine times.
We are also exceptionally pleased with the 25.72% and 43.60% total returns
(without load and not annualized) of the Lebenthal New York Fund for the three
year and five year periods ended May 31, 1997. May was the third consecutive
month that the Fund's three year return was the best of its 63 peer funds. For
five year periods, the Fund was ranked #3 in May, #1 in March and April, and #2
in February--out of 43 peer funds.
The total return of each fund, assuming payment of a full 4.5% load, from
inception through May 31, 1997, was (a) 48.40% for The Lebenthal New York
Municipal Bond Fund (June 24, 1991); (b) 8.12% for The Lebenthal New Jersey
Bond Fund (December 1, 1993); and (c) 18.98% for The Lebenthal Taxable
Municipal Bond Fund (December 1, 1993).
The SEC yields of the three funds at their May 31, 1997, offering prices were:
New York, 4.82%; New Jersey, 4.99%; and Taxable Municipal, 7.12%. The
definition of SEC yield is the annualized current return for the 30-day period
prior to a named date divided by the average public offering price for the same
period.
We have been managing each of our funds conservatively and with caution fearing
that bond market participants and the Fed may again choose to focus on the
increased inflation that could result from our powerfully growing economy.
Thus, we are continuing to follow the same strategy that has thus far allowed
us to outperform most of our peer funds, i.e., stay fully invested in
high-quality, liquid instruments with current or premium coupons. Because we
have learned that successfully forecasting interest-rate inflection points is
almost impossible, we almost always stay fully invested. We also believe that
you want us to stay invested in bonds--or you wouldn't have invested in a bond
fund.
Please be mindful that 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,
James L. Gammon
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
MAY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ----------- -------- --------
MUNICIPAL BONDS (98.34%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,285,000 Monroe County, New York IDA Civic Facility (DePaul Community Facility),
6.50%, due 02/01/24, (SONYMA Insured) $ 1,369,900 Aa
4,400,000 New York, New York - Series 1, 6.25%, due 04/15/27, (FHA Insured) 4,473,392 Baa1 BBB+
1,670,000 New York, New York - Series C, General Obligation, 7.25%, due 08/15/24 1,786,666 Baa1 BBB+
1,265,000 New York, New York - Series L, 5.20%, due 08/01/08 1,267,454 Aaa AAA
750,000 New York, New York - Series L, 5.375% due 08/01/11 743,708 Aaa AAA
2,400,000 New York State Dormitory Authority, 7.40%, due 08/01/30, (FHA Insured) 2,634,144 Aa2 AAA
7,160,000 New York State Dormitory Authority (Highlands Center),
6.60%, due 02/01/34, (FHA Insured) 7,588,311 AA
4,000,000 New York State Dormitory Authority (Menorah Nursing Home),
6.10%, due 02/01/37 4,052,920 AAA
2,330,000 New York State Dormitory Authority (Presbyterian Residential Community),
6.50%, due 08/01/34, (FHA Insured) 2,449,576 AA
750,000 New York State Dormitory Authority (State University Educational Facilities),
7.00%, due 05/15/16 800,078 Baa1 BBB+
3,900,000 New York State Dormitory Authority (Nottingham Retirement Community),
6.125%, due 07/01/25, (SONYMA Insured) 4,013,529 Aa
3,500,000 New York State Dormitory Authority (Jewish Geriatric - Long Island),
7.35%, due 08/01/29, (FHA Insured) 3,897,740 AAA
5,190,000 New York State Dormitory Authority (Niagara Frontier Home),
6.40%, due 02/01/35, (FHA Insured) 5,425,315 AA
4,755,000 New York State Dormitory Authority (Geneva Nursing Home II),
6.20%, due 08/01/35, (FHA Insured) 4,862,463 AA
5,750,000 New York State Dormitory Authority (St. Johns Health),
6.25%, due 02/01/36, (FHA Insured) 5,884,205 AA
2,730,000 New York State Dormitory Authority (Jewish Home of Central New York),
6.25%, due 07/01/25, (MBIA Insured) 2,861,122 Aaa
2,400,000 New York State Dormitory Authority (W K Nursing Home Corporation),
6.125%, due 02/01/36, (FHA Insured) 2,437,584 AAA
3,000,000 New York State Dormitory Authority (New York Methodist Hospital),
6.05%, due 02/01/34, (AMBAC Insured) 3,073,140 Aaa AAA
750,000 New York State Dormitory Authority (Grace Manor Health Care Facility),
6.15%, due 07/01/18, (SONYMA Insured) 766,890 Aa2
1,000,000 New York State Dormitory Authority (St. Lukes Home Residential Health),
6.375%, due 08/01/35, (FHA Insured) 1,038,160 AA
</TABLE>
See Notes to Financial Statements.
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ----------- -------- --------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,000,000 New York State Energy Research & Development Authority -
Industrial Development & Pollution Control (Brooklyn Union and Gas),
6.75%, due 02/01/24, (MBIA Insured) $ 1,078,080 Aaa AAA
6,000,000 New York State Energy Research & Development Authority -
Electric Facilities - (Consolidated Edison Company of New York),
6.75%, due 01/15/27 6,318,480 A1 A+
1,000,000 New York State Energy Research & Development Authority -
Electric Facilities - (Long Island Lighting), 7.15%, due 02/01/22 1,061,510 Ba3 BB+
500,000 New York State Energy Research & Development Authority -
Pollution Control - (Niagara Mohawk Power Corporation),
6.625%, due 10/01/13, (FGIC Insured) 538,945 Aaa AAA
1,750,000 New York State Medical Hospital Nursing Facilities Finance Agency,
6.60%, due 02/15/31, (FHA Insured) 1,846,950 AAA
1,500,000 New York State Housing Finance Agency MHRB - Series C,
6.50%, due 08/15/24, (FHA Insured) 1,544,970 Aa2 AAA
2,000,000 New York State Housing Finance Agency MHRB - Series D
6.10%, due 11/15/36, (FHA Insured) 2,027,920 AAA
2,000,000 New York State Housing Finance Agency (Housing Project Meeting-Series A),
6.125%, due 11/01/20, (FSA Insured) 2,030,900 Aaa AAA
2,515,000 New York State Housing Finance Agency
(Multi-family Housing Meeting - Series C),
6.10%, due 08/15/28, (SONYMA Insured) 2,551,493 Aa2
3,400,000 New York State Housing Finance Agency (Phillips Village Project-Series A),
7.75%, due 08/15/17, (FHA/SONYMA Insured) 3,752,274 A2
6,750,000 New York State Medical Care Facilities Finance Agency - Series B,
6.60%, due 08/15/34, (FHA Insured) 7,155,000 Aa2 AA
60,000 New York State Medical Care Facilities Finance Agency, Mental Health,
7.30%, due 02/15/21 65,859 Baa1 BBB+
5,300,000 New York State Medical Care Facilities Finance Agency,
6.90%, due 08/15/34, (AMBAC/FHA Insured) 5,844,363 Aaa AAA
6,950,000 New York State Medical Care Facilities Finance Agency - Series C,
6.375%, due 08/15/29, (FHA Insured) 7,227,027 Aa2 AA
500,000 New York State Medical Care Facilities Finance Agency
(New York Downtown Hospital - Series A), 6.70%, due 02/15/12 524,400 Baa BBB
2,600,000 New York State Medical Care Facilities Finance Agency
(New York Downtown Hospital - Series A), 6.80%, due 02/15/20 2,730,182 Baa BBB
</TABLE>
See Notes to Financial Statements.
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------ -------- --------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,505,000 New York State Medical Care Facilities Finance Agency
(Mortgage Project - Series A), 6.50%, due 02/15/35, (FHA Insured) $ 2,643,026 Aa2 AA
2,000,000 New York State Medical Care Facilities Finance Agency
(Brookdale Hospital Medical Center - Series A), 6.80%, due 08/15/12 2,112,140 Baa BBB
2,550,000 New York State Medical Care Facilities Finance Agency
(Brookdale Hospital Medical Center - Series A), 6.85%, due 02/15/17 2,693,614 Baa BBB
5,000,000 New York State Medical Care Facilities Finance Agency
(Mortgage Project - Series D), 6.375%, due 02/15/35, (FHA Insured) 5,191,300 Aa2 AA
TOTAL MUNICIPAL BONDS (COST $114,516,473) 120,364,730
</TABLE>
<TABLE>
<CAPTION>
COMMERCIAL PAPER (1.11%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
156,000 Ford Motor Credit Company, 5.45%, due 06/10/97 156,000
290,000 Ford Motor Credit Company, 5.52%, due 06/10/97 290,000
615,000 New York, New York A-5, 5.00%, due 08/01/97 615,000
300,000 New York, New York City Municipal Water Finance Authority, Water and
Sewer Systems Revenue Adjustment - Series A, 5.00%, due 06/15/25 300,000
TOTAL COMMERCIAL PAPER(COST $1,361,000) 1,361,000
</TABLE>
<TABLE>
<CAPTION>
SHARES
- ------------
CLOSED-END FUNDS (.57%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
500 Blackrock New York Investment Quality Municipal Trust 6,781
49,801 Muniyield New York Insured Fund II 690,989
TOTAL CLOSED END FUNDS (COST $684,722) 697,770
TOTAL INVESTMENTS (100.02%)(COST $116,562,195#) 122,423,500
CASH AND OTHER ASSETS, NET OF LIABILITIES (-.02%) (26,638)
NET ASSETS (100.00%) $122,396,862
</TABLE>
# Aggregate cost for federal income tax purposes is $116,562,195.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $5,861,305 and $0 respectively, resulting in
net unrealized appreciation of $5,861,305.
KEY:
AMBAC = Ambac Indemnity Corporation
FGIC = Federal Guaranty Insurance Corporation
FHA = Federal Housing Administration
FSA = Financial Security Assurance, Inc.
MBIA = Municipal Bond Insurance Association
MHRB = Multi-family Housing Revenue Bond
SONYMA = State of New York Mortgage Agency
See Notes to Financial Statements.
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
MAY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------ -------- --------
MUNICIPAL BONDS (101.27%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 125,000 Cape May County, New Jersey Industrial Pollution Control Financing
Authority Atlantic City Electric Company Project A, 7.20%, due 11/01/29,
(MBIA Insured) $ 139,793 Aaa AAA
250,000 Casino Reinvestment Development Authority of New Jersey
Parking Fee Revenue - Series A, 5.25%, due 10/01/14 241,968 Aaa AAA
250,000 Essex County, New Jersey Import Authority County Correctional
Facility - Series A, 5.70%, due 01/01/27 249,773 Aaa AAA
70,000 Essex County, New Jersey Import Authority Orange School District-Series A,
6.95%, due 07/01/14, (MBIA Insured) 78,676 Aaa AAA
100,000 Irvington, New Jersey Housing & Mortgage Finance Authority,
6.50%, due 02/01/24, (FHA Insured) 103,263 AAA
300,000 Middlesex County New Jersey Import Authority, 5.90%, due 9/15/21 304,167 A1 A+
100,000 New Jersey Economic Development Authority, Economic Development
Revenue - American Airlines Inc. Project, 7.10%, due 11/01/31 106,874 Baa2 BB+
250,000 New Jersey Economic Development Authority,
Economic Development Revenue - Bancroft Incorporated Obligation Group,
6.05%, due 12/01/25, (Connie Lee Insured) 255,258 AAA
150,000 New Jersey Economic Development Authority, Economic Development
Revenue Refunding - Burlington Coat Factory, LOC First Fidelity Bank,
6.125%, due 09/01/10 156,863 Aa3
150,000 New Jersey Economic Development Authority, Economic Development
Revenue - W.Y. Urban Holding Company, LOC NatWest Bank, Jersey City,
6.50%, due 06/01/15 157,680 A
200,000 New Jersey Economic Development Authority, Economic Development
Revenue Health Village Project, LOC First Union, 6.00%, due 05/01/16 202,838 A+
100,000 New Jersey Economic Development Authority, Pollution Control Revenue
PSE&G Co. Project, 6.40%, due 05/01/32, (MBIA Insured) 104,836 Aaa AAA
100,000 New Jersey Economic Development Authority, Water Facilities Revenue
Project A, 6.875%, due 11/01/34, (FGIC Insured) 109,552 Aaa AAA
100,000 New Jersey Economic Development Authority Revenue Sewer Facilities -
Anheuser-Busch Project, 5.85%, due 12/01/30 97,423 A1 A+
85,000 New Jersey Health Care Facilities Financing Authority - Irvington General
Hospital Issue - Series 1994, 6.40%, due 08/01/25, (FHA Insured) 89,195 AAA
125,000 New Jersey Health Care Facilities Financing Authority - General
Hospital Center at Passaic, 6.75%, due 07/01/19, (FSA Insured) 136,456 Aaa AAA
100,000 New Jersey Health Care Facilities Financing Authority Revenue Monmouth
Medical Center Issue - Series C, 6.25%, due 7/01/24 (FSA Insured) 105,155 Aaa AAA
</TABLE>
See Notes to Financial Statements.
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ----------- -------- --------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 150,000 New Jersey Health Care Facilities Financing Authority Revenue
St. Joseph's Hospital & Medical Center, 6.00%, due 7/01/26
(Connie Lee Insured) $ 153,653 AAA
100,000 New Jersey Economic Development Authority Revenue Economic
Growth - Series D, LOC NatWest Bank, Jersey City, 6.55%, due 08/01/14 104,326 A
150,000 New Jersey State Education Facilities Authority - Trenton State
College - Series E, 6.00%, due 07/01/19, (AMBAC Insured) 154,079 Aaa AAA
100,000 New Jersey State Education Facilities Authority - New Jersey
Institute Technology Issue - Series A, 6.00%, due 07/01/24, (MBIA Insured) 103,316 Aaa AAA
250,000 New Jersey State Higher Education Assistance Authority - Student Loan
Revenue - Loan Program - Series A, 5.80%, due 06/01/16, (MBIA Insured) 250,403 Aaa AAA
125,000 New Jersey State Housing & Mortgage Finance Agency MHRB
Refunding - Presidential Plaza, 7.00%, due 05/01/30, (FHA Insured) 133,921 AAA
300,000 New Jersey State Housing & Mortgage Finance Agency MHRB
Series A, 6.05%, due 11/01/20, (AMBAC Insured) 305,127 Aaa AAA
100,000 New Jersey State Housing & Mortgage Finance Agency MHRB
Series A, 6.25%, due 05/01/28 (AMBAC Insured) 101,895 Aaa AAA
125,000 New Jersey State Housing & Mortgage Finance Agency Revenue Housing -
Series A, HUD Section 8, 6.95%, due 11/01/13 133,510 A+
150,000 New Jersey State Housing & Mortgage Finance Agency - Home
Buyers - Series O, 6.35%, due 10/01/27, (MBIA Insured), Subject to AMT 153,753 Aaa AAA
140,000 Newark, New Jersey Housing Finance Corporation Mortgage Revenue,
Refunding - HUD Section 8-Manor Apartments-A, 7.50%, due 02/15/24,
(FHA Insured) 151,554 AAA
800,000 Port Authority of New York & New Jersey Special Obligation
Revenue JFK International Air Terminal - Series 6,
5.75%, due 12/01/22, (MBIA Insured) 793,656 Aaa AAA
100,000 Puerto Rico Housing Bank & Finance Agency Single Family Mortgage
Affordable Housing Mortgage - Portfolio I, 6.25%,
due 04/01/29, (GNMA/FNMA/FHLMA Insured), Subject to AMT 101,454 Aaa AAA
TOTAL MUNICIPAL BONDS (Cost $5,088,014) 5,280,417
</TABLE>
<TABLE>
<CAPTION>
COMMERCIAL PAPER (4.76%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
248,000 Ford Motor Credit Company, 5.36%, due 06/02/97 248,000
(COST $248,000)
</TABLE>
See Notes to Financial Statements.
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
VALUE
SHARES (NOTE 1)
- ---------- ------------
CLOSED-END FUNDS (2.03%)
- -------------------------------------------------------------------------------
1,100 Munivest New Jersey Fund $ 14,300
6,100 Muniyield New Jersey Fund 91,500
TOTAL CLOSED-END FUNDS (COST $101,322) 105,800
TOTAL INVESTMENTS (108.06%)(COST $5,437,336#) 5,634,217
CASH AND OTHER ASSETS, NET OF LIABILITIES (- 8.06%) (419,801)
NET ASSETS (100.00%) $ 5,214,416
# Aggregate cost for federal income tax purposes is $5,437,336.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $199,458 and $2,577, respectively, resulting
in net unrealized appreciation of $196,881.
KEY:
AMBAC = Ambac Indemnity Corporation
AMT = Alternative Minimum Tax
FGIC = Federal Guaranty Insurance Corporation
FHA = Federal Housing Authority
FHLMA = Federal Home Loan Mortgage Association
FSA = Financial Security Assurance, Inc.
CONNIE LEE = College Construction Loan Insurance Association
FNMA = Federal National Mortgage Association
GNMA = Government National Mortgage Association
HUD = Housing and Urban Development
LOC = Letter of Credit
MBIA = Municipal Bond Insurance Association
MHRB = Multi-family Housing Revenue Bond
See Notes to Financial Statements.
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
MAY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------ -------- --------
MUNICIPAL BONDS (90.06%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 150,000 All Saints Health System,
9.00%, due 08/15/24, (MBIA Insured) $ 161,739 Aaa AAA
385,000 Baltimore, Maryland - Series B, General Obligation,
7.90%, due 10/15/16, (FGIC Insured) 389,143 Aaa AAA
1,100,000 Bastrop, Texas Economic Development Corporation, 8.00%, due 08/15/16 1,081,817 BBB+
100,000 Buffalo, New York - Series F, 9.05%, due 02/01/15, (AMBAC Insured) 105,114 Aaa AAA
240,000 California Housing Finance Agency - Series C,
8.10%, due 02/01/37, (AMBAC Insured) 237,986 Aaa AAA
2,000,000 Compton, California Community Redevelopment Agency - Series C,
Tax Allocation, 0.00%, due 08/01/22, (FSA Insured) 290,780 Aaa AAA
150,000 Connecticut State Health and Educational Facilities, Maefair Health Care,
9.20%, due 11/01/24 165,900 A1 AA-
125,000 Connecticut State Health and Educational Facilities, Laurelwood,
9.36%, due 11/01/24 137,526 A1 AA-
150,000 Connecticut State Health and Educational Facilities, Shady Knoll Center,
8.90%, due 11/01/24 159,840 A1 AA-
255,000 Connecticut State Housing Finance Authority - Series F,
9.25%, due 05/15/27 285,580 Aa3 AA
200,000 Connecticut State Housing Finance Authority - Series G,
7.625%, due 05/15/21 193,594 Aa3 AA
100,000 Connecticut State Development Authority - Sub series B1,
8.50%, due 08/15/14 103,655 A+
125,000 Conyers, Georgia Water & Sewer - Series B,
8.75%, due 07/01/15, (AMBAC Insured) 132,864 Aaa AAA
250,000 Cuyahoga County, Ohio Economic Development - Series A,
8.625%, due 06/01/22 255,313 A
200,000 Florida Housing Finance Agency - Taxable Housing Mariner Club,
8.25%, due 09/01/15 (AMBAC Insured) 202,870 Aaa AAA
1,230,000 Harrisburg, Pennsylvania - Series A, General Obligation,
0.00%, due 04/01/18, (AMBAC Insured) 250,244 Aaa AAA
1,165,000 Harrisburg, Pennsylvania - Series A, General Obligation,
0.00%, due 04/01/19, (AMBAC Insured) 219,579 Aaa AAA
350,000 Harrison County, Mississippi - Series A, General Obligation,
7.75%, due 04/01/16, (MBIA Insured) 351,162 Aaa
150,000 Idaho Housing Agency, HUD Section 8, 8.50%, due 07/01/09 156,252 A
150,000 Illinois Housing Development Authority,
8.64%, due 12/01/21, (AMBAC Insured) 157,637 Aaa AAA
</TABLE>
See Notes to Financial Statements.
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ----------- -------- --------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,180,000 Kern County, California Pension Obligation,
0.00%, due 08/15/18, (MBIA Insured) $ 423,247 Aaa AAA
325,000 Maryland State Community Development Administration,
9.10%, due 05/15/10, (MHF Insured) 348,819 Aa3
150,000 Memorial Health System, 8.375%, due 10/01/20, (MBIA Insured) 155,921 Aaa AAA
200,000 Michigan State Housing Development Authority - Series A,
8.30%, due 11/01/15, (AMBAC Insured) 211,038 Aaa AAA
190,000 Minnesota State Housing Finance Agency - Series A,
8.70%, due 08/01/22 194,853 Aa2 AA
60,000 Minnesota State Housing Finance Agency - Series B,
8.00%, due 02/01/18 61,101 AA
50,000 Minnesota State Housing Finance Agency, Taxable-Single Family
Mortgage - Series G, 8.05%, due 01/01/12 49,572 Aa2 AA+
600,000 Mississippi Hospital Equipment and Facilities, 9.10%, due 04/01/06 607,980 Baa
90,000 New Hampshire State Housing and Finance Authority - Series C,
9.40%, due 07/01/14 96,957 Aa2
240,000 New Jersey State Housing and Mortgage Finance Agency - Series E,
8.95%, due 11/01/12 255,132 AA-
250,000 New York State Environmental Facilities - Series A, 9.625%, due 03/15/21 271,363 Baa1 BBB
300,000 New York State Housing Finance Agency - Series B,
8.25%, due 05/15/35, (FHA Insured) 302,124 AAA
350,000 New York State Housing Finance Agency Revenue - Taxable Multi-family
Housing, 8.11%, due 11/15/38, (FHA Insured) 345,664 AAA
110,000 New York State Housing Finance Agency - Series B, Service Contract
Obligation, 8.60%, due 03/15/04 114,551 Baa1 BBB
100,000 Pittsburgh, Pennsylvania Urban Redevelopment Authority,
9.07%, due 09/01/14, (FSA Insured) 109,757 Aaa AAA
300,000 Sacramento County, California, 0.00%, due 08/15/21, (MBIA Insured) 273,843 Aaa AAA
120,000 Southeastern Pennsylvania Transit Authority - Series B,
8.75%, due 03/01/20, (FGIC Insured) 128,405 Aaa AAA
300,000 Tampa, Florida Sports Authority, 8.07%, due 10/01/26, (MBIA Insured) 304,005 Aaa AAA
795,000 Tennesse Valley Authority, 8.625%, due 11/15/29 843,694 Aaa AAA
375,000 Texas State Department of Housing & Community Affairs - Series C1,
7.76%, due 09/01/17, (MBIA Insured) 369,668 Aaa AAA
</TABLE>
See Notes to Financial Statements.
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ----------- -------- --------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 300,000 Texas State Veterans Housing, General Obligation,
7.35%,due 12/01/21 $ 281,628 Aa AA
1,050,000 United Nations Development Corporation,
8.80%, due 07/01/26 1,090,352 A
365,000 Virginia State Housing Development Authority - Series A,
Multi-family, 8.125%, due 11/01/15 371,227 Aa1 AA+
350,000 Wisconsin Housing & Economic Development Authority - Series H,
7.875%, due 03/01/26 344,264 Aa2 AA
TOTAL MUNICIPAL BONDS (COST $12,474,266) 12,593,760
</TABLE>
<TABLE>
<CAPTION>
COMMERCIAL PAPER (1.54%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
215,000 Ford Motor Credit Company, 5.54%, due 06/09/97 215,000
(COST $215,000)
</TABLE>
<TABLE>
<CAPTION>
SHARES
- ------------
CLOSED-END FUNDS (4.51%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
97,080 Blackrock Income Trust 631,020
TOTAL CLOSED-END FUNDS (COST $617,901) 631,020
TOTAL INVESTMENTS (96.11%)(COST $13,307,167#) 13,439,780
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS (3.89%) 544,254
NET ASSETS (100%) $ 13,984,034
</TABLE>
# Aggregate cost for federal income tax purposes is $13,307,167.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $294,845 and $162,232 respectively, resulting
in net unrealized appreciation of $132,613.
KEY:
AMBAC = Ambac Indemnity Corporation
FGIC = Federal Guaranty Insurance Corporation
FHA = Federal Housing Authority
FSA = Financial Security Assurance, Inc.
HUD = Housing and Urban Development
MBIA = Municipal Bond Insurance Association
MHF = Maryland Housing Fund
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
MAY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
LEBENTHAL LEBENTHAL LEBENTHAL
NEW YORK NEW JERSEY TAXABLE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
------------- ------------ ------------
ASSETS
Investment in securities at value
(cost $116,562,195, $5,437,336
and $13,307,167) $122,423,500 $5,634,217 $13,439,780
Cash 25,110 -- 15,211
Receivables:
Securities sold -- -- 310,606
Capital shares sold 461,485 1,469 81,295
Interest 2,173,964 68,339 202,428
Due from Manager -- 41,027 19,236
Deferred organization expenses -- 11,628 9,382
Total assets 125,084,059 5,756,680 14,077,938
LIABILITIES
Payables:
Securities purchased 1,995,174 -- --
Capital shares redeemed 158,857 491,194 5,559
Dividends declared 341,203 14,815 54,500
Due to custodian -- 4,659 --
Distribution fee payable (Note 3) 25,835 -- --
Management fee payable (Note 2) 23,852 -- --
Administration fee payable 35,633 1,530 4,029
Accrued Directors' fees 3,440 107 267
Accrued expenses and other liabilities 103,203 29,959 29,549
Total liabilities 2,687,197 542,264 93,904
NET ASSETS 122,396,862 5,214,416 13,984,034
NET ASSETS CONSIST OF:
Par value 15,289 774 2,026
Paid in capital 118,353,129 5,289,805 14,268,688
Undistributed investment income-net 8,544 383 305
Accumulated net realized loss on
investments (1,841,405) (273,427) (419,598)
Unrealized appreciation on
investments - net 5,861,305 196,881 132,613
Total net assets $122,396,862 $5,214,416 $13,984,034
Shares outstanding (Note 4) 15,289,172 774,473 2,026,361
Net asset value, and redemption
price per share $8.01 $6.73 $6.90
Maximum offering price per share* $8.39 $7.05 $7.23
* The sales charge 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.
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
LEBENTHAL LEBENTHAL LEBENTHAL
NEW YORK NEW JERSEY TAXABLE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
------------- ------------ ------------
INVESTMENT INCOME
Income:
Interest . $3,630,813 $ 143,767 $ 509,616
Dividends 124,062 8,751 46,723
Total income 3,754,875 152,518 556,339
Expenses:
Management fee (Note 2) 140,080 6,462 17,367
Distribution fee (Note 3) 151,730 6,462 17,367
Administration fee 71,359 3,044 8,302
Shareholder servicing and related
shareholder expenses 72,805 16,110 16,910
Custodian fee 12,903 1,812 2,283
Interest 1,179 28 1,021
Legal, compliance and filing fees 43,137 8,001 5,983
Audit and accounting fees 27,433 21,039 18,893
Directors' fees 7,947 319 838
Amortization of organization
expenses (Note 1) -- 3,862 3,116
Other 13,218 1,261 2,518
Total expenses 541,791 68,400 94,598
Less:Reimbursement of expenses by
Manager (Note 2) -- (39,966) (11,219)
Fees waived by Manager and
Distributor (Notes 2+3) -- (12,924) (34,734)
Fees paid indirectly (Note 1) (1,607) (383) (305)
Net expenses 540,184 15,127 48,340
Net investment income 3,214,691 137,391 507,999
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on investments 90,483 20,069 39,429
Change in unrealized appreciation of
investments (1,369,565) (27,622) (502,546)
Net realized and unrealized gain/
(loss) on investments (1,279,082) (7,553) (463,117)
Increase in net assets from operations $1,935,609 $ 129,838 $ 44,882
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
_______________________________________________________________________________
<TABLE>
<CAPTION>
LEBENTHAL NEW YORK MUNICIPAL LEBENTHAL NEW JERSEY
BOND FUND MUNICIPAL BOND FUND
----------------------------- --------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
MAY 31, 1997 NOVEMBER 30, MAY 31,1997 NOVEMBER 30,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 3,214,691 $ 5,915,750 $ 137,391 $ 230,070
Net realized gain (loss) on investments 90,483 967,689 20,069 (14,767)
Change in unrealized appreciation (1,369,565) 177,568 (27,622) 48,013
Increase in net assets from operations 1,935,609 7,061,007 129,838 263,316
Dividends from net investment income (3,215,599) (5,907,035)* (137,008) (230,070)*
Capital share transactions (Note 4) 1,065,539 15,455,986 39,437 1,791,020
Capital contribution (Note 2) -- 422,268 -- --
Total increase (decrease) (214,451) 17,032,226 32,267 1,824,266
Net assets:
Beginning of period 122,611,313 105,579,087 5,182,149 3,357,883
End of period $122,396,862 $122,611,313 $5,214,416 $5,182,149
Including undistributed net investment income $8,544 9,452 383 --
</TABLE>
* 99.62% and 98.67% designated as exempt interest dividends for federal income
tax purposes for New York Municipal Bond Fund and New Jersey Municipal Bond
Fund, respectively.
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
_______________________________________________________________________________
LEBENTHAL TAXABLE MUNICIPAL
BOND FUND
--------------------------
SIX MONTHS
ENDED YEAR ENDED
MAY 31, 1997 NOVEMBER 30,
(UNAUDITED) 1996
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 507,999 $ 899,364
Net realized gain (loss) on investments 39,429 (222,798)
Change in unrealized appreciation (502,546) 153,567
Increase in net assets from operations 44,882 830,133
Dividends from net investment income (507,694) (899,364)
Capital share transactions (Note 4) (160,339) 5,990,459
Total increase (decrease) (623,151) 5,921,228
Net assets:
Beginning of period 14,607,185 8,685,957
End of period $13,984,034 $14,607,185
Incuding undistributed net investment income 305 --
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock outstanding throughout each period:
_______________________________________________________________________________
<TABLE>
<CAPTION>
LEBENTHAL NEW YORK
MUNICIPAL BOND FUND
-----------------------------------------------------------------------------
SIX MONTHS
ENDED, YEAR ENDED NOVEMBER 30,
MAY 31,1997 ---------------------------------------------------------------
(UNAUDITED) 1996 1995 1994# 1993 1992
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $8.09 $7.99 $6.84 $8.03 $7.54 $7.19
Income from investment operations:
Net investment income 0.21 0.41 0.43 0.41 0.44 0.47
Net realized and unrealized gain
(loss) on investments (0.08) 0.10 1.15 (1.15) 0.50 0.35
Total from investment operations 0.13 0.51 1.58 (0.74) 0.94 0.82
Less distributions:
Dividends from net investment income (0.21) (0.41) (0.43) (0.41) (0.44) (0.47)
Distributions from net realized gain
on investments -- -- -- (0.04) (0.01) --
Total distributions (0.21) (0.41) (0.43) (0.45) (0.45) (0.47)
Net asset value, end of period $8.01 $8.09 $7.99 $6.84 $8.03 $7.54
TOTAL RETURN
(without deduction of sales load) 1.71% 6.63%* 23.56% (9.62%) 12.63% 11.68%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $122,397 $122,611 $105,579 $75,326 $80,727 $39,350
Ratios to average net assets:
Expenses## 0.89%** 1.09% 0.99% 0.64% 0.20% 0.17%
Net investment income 5.30% 5.17% 5.63% 5.44% 5.42% 6.08%
Portfolio turnover 29.05% 45.92% 148.88% 192.91% 7.88% 8.14%
</TABLE>
# Effective August 15, 1994, the investment advisor changed to Lebenthal
Asset Management, Inc.
## If the Investment Manager had not waived fees and reimbursed expenses and
the Administrator and Distributor had not waived fees, the ratio of operating
expenses to average net assets would have been 1.10%, 1.12%, and 1.44% for the
periods ended November 30, 1994,1993, and 1992, respectively, for the New York
Bond Fund.
* Includes the effect of a capital contribution from the Fund's Manager.
Without the capital contribution the total return would have been 6.24%.
** Includes fees paid indirectly of 0.03% for the New York Municipal Bond Fund.
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
Selected data for a share of capital stock outstanding throughout each period:
_______________________________________________________________________________
LEBENTHAL NEW JERSEY
MUNICIPAL BOND FUND
-----------------------------------------
SIX MONTHS
ENDED YEAR ENDED NOVEMBER 30,
MAY 31,1997 -----------------------------
(UNAUDITED) 1996 1995 1994#*
---------- --------- -------- --------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $6.74 $6.70 $5.95 $7.16
Income from investment operations:
Net investment income 0.18 0.36 0.36 0.32
Net realized and unrealized gain
(loss) on investments (0.01) 0.04 0.75 (1.21)
Total from investment operations 0.17 0.40 1.11 (0.89)
Less distributions:
Dividends from net investment income (0.18) (0.36) (0.36) (0.32)
Net asset value, end of period $6.73 $6.74 $6.70 $5.95
TOTAL RETURN
(without deduction of sales load) 2.57% 6.18% 19.10% (12.70%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $5,214 $5,182 $3,358 $2,145
Ratios to average net assets:
Expenses ## 0.59%** 0.63%** 0.60% 0.60%
Net investment income 5.32% 5.37% 5.64% 4.97%
Portfolio turnover 50.18% 28.56% 61.69% 291.60%
# Effective August 15, 1994, the investment advisor changed to Lebenthal
Asset Management, Inc.
## If the Investment Manager had not waived fees and reimbursed expenses and
the Administrator and Distributor had not waived fees, the ratio of operating
expenses to average net assets would have been 2.65%, 3.20%, 4.13%, and 4.83%
for six months ending May 31, 1997 and the periods ended November 30, 1996,
1995 and 1994, respectively, for the New Jersey Bond Fund;
* Fund commenced operations on December 1, 1993.
** Includes fees paid indirectly of 0.01% for the New Jersey Bond Fund.
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
Selected data for a share of capital stock outstanding throughout each period:
_______________________________________________________________________________
LEBENTHAL TAXABLE
MUNICIPAL BOND FUND
-----------------------------------------
SIX MONTHS
ENDED YEAR ENDED NOVEMBER 30,
MAY 31,1997 -----------------------------
(UNAUDITED) 1996 1995 1994#*
---------- -------- -------- ---------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $7.13 $7.22 $6.34 $7.16
Income from investment operations:
Net investment income 0.25 0.52 0.53 0.44
Net realized and unrealized gain
(loss) on investments (0.23) (0.09) 0.88 (0.82)
Total from investment operations 0.02 0.43 1.41 (0.38)
Less distributions:
Dividends from net investment income (0.25) (0.52) (0.53) (0.44)
Net asset value, end of period $6.90 $7.13 $7.22 $6.34
TOTAL RETURN
(without deduction of sales load) .38% 6.35% 23.11% (5.45%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $13,984 $14,607 $8,686 $2,990
Ratios to average net assets:
Expenses ## 0.70% 0.61% 0.60% 0.60%
Net investment income 7.31% 7.34% 7.57% 6.74%
Portfolio turnover 6.08% 44.46% 84.74% 93.73%
# Effective August 15, 1994, the investment advisor changed to Lebenthal
Asset Management, Inc.
## If the Investment Manager had not waived fees and reimbursed expenses and
the Administrator and Distributor had not waived fees, the ratio of operating
expenses to average net assets would have been 1.36%, 1.63%, 2.59%, and 3.60%
for six months ending May 31, 1997 and the periods ended November 30, 1996,
1995 and 1994, respectively, for the Taxable Bond Fund;
* Fund commenced operations on December 1, 1993.
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
_______________________________________________________________________________
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 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 principals as
follows:
A) VALUATION OF SECURITIES -
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
services 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.
Other 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 sixty (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 net investment income 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 -
Costs incurred in connection with the organization of each Fund and their
initial registration are amortized on a straight-line basis over a five-year
period from each Fund's commencement of operations.
E) GENERAL -
Securities transactions are recorded on a trade date basis. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Interest income is recorded on the accrual basis and dividend income is
recorded on the ex-dividend date. Premiums and original issue discounts on
securities purchased are amortized over the life of the respective securities.
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
_______________________________________________________________________________
SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
F) FEES PAID INDIRECTLY -
Funds leaving excess cash in demand deposit accounts may receive credits which
are available to offset custody expenses. The Statements of Operations report
gross custody expense, and reflect the amount of such credits as a reduction in
total expenses.
G) ESTIMATES -
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Funds to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
2. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Management Contract the Funds pay a management fee to Lebenthal Asset
Management, Inc. (its Manager), equal to 0.25% of each Fund's average daily net
assets up to $50 million; 0.225% of such assets between $50 million and $100
million; and 0.20% of such assets in excess of $100 million. The Manager
manages the portfolio of securities of each Fund and makes decisions with
respect to the purchase and sale of investments. 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 six months ended May 31, 1997, the Manager
voluntarily waived management fees of $6,462 and $17,367 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 $39,966 and $11,219,
respectively.
Lebenthal & Co., Inc. retained commissions of $149,353 from the sales of shares
of the Company.
The Directors of the Company who are unaffiliated with the Manager or the
Distributor are paid $2,000 per annum plus $500 per meeting attended.
Included in the Statement of Changes in Net Assets of the New York Municipal
Bond Fund for the year ended November 30, 1996 is a reimbursement of $422,268
from the Fund's Manager representing a loss on a security purchased in excess
of a regulatory limitation.
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
_______________________________________________________________________________
3. DISTRIBUTION PLAN
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
0.25% of the Fund's average daily net assets. For the six months ended May 31,
1997, the Distributor voluntarily waived fees of $6,462 and $17,367 from 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.
4. CAPITAL STOCK
At May 31, 1997, there were 20,000,000,000 shares of $0.001 par value stock
authorized. Transactions in capital stock were as follows:
LEBENTHAL NEW YORK LEBENTHAL NEW YORK
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1997 NOVEMBER 30, 1996
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
Sold 901,898 $ 7,206,485 3,470,847 $27,552,574
Issued as reinvestment
of dividends 355,775 2,836,672 665,870 5,256,989
Redeemed (1,125,002) (8,977,618) (2,196,989) (17,353,577)
Net increase 132,671 $ 1,065,539 1,939,728 $15,455,986
LEBENTHAL NEW JERSEY LEBENTHAL NEW JERSEY
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1997 NOVEMBER 30, 1996
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------
Sold 77,854 $ 519,722 392,200 $ 2,608,455
Issued as reinvestment
of dividends 17,251 115,018 31,934 211,384
Redeemed (89,493) (595,303) (156,189) (1,028,819)
Net increase 5,612 $ 39,437 267,945 $ 1,791,020
LEBENTHAL TAXABLE LEBENTHAL TAXABLE
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1997 NOVEMBER 30, 1996
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------
Sold 227,263 $ 1,577,832 1,164,585 $ 8,169,453
Issued as reinvestment
of dividends 51,094 353,862 102,059 708,161
Redeemed (301,231) (2,092,033) (420,759) (2,887,155)
Net increase (decrease) (22,872) $ (160,339) 845,885 $ 5,990,459
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
_______________________________________________________________________________
5. 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 debt obligations
and government securities having maturities of one year or less, were
$36,991,342, $3,055,619, and $827,474 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 $34,675,815,
$2,481,567, and $1,502,983 respectively.
6. FEDERAL INCOME TAXES
Tax basis capital losses which may be carried forward to offset future capital
gains through November 30, 2004 amounted to $1,927,724, $293,496 and $453,168
for the New York Bond Fund, the New Jersey Bond Fund, and the Taxable Bond
Fund, respectively.
7. CONCENTRATION OF CREDIT RISK
The New York Bond Fund invests 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. Each Fund maintains a policy of monitoring its
exposure by reviewing the creditworthiness of the issuers, as well as that of
financial institutions issuing letters of credit, and by limiting the amount of
holdings with letters of credit from one financial institution.
This report is submitted for the general information of the shareholders 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
120 BROADWAY, NEW YORK, NY 10271
(212) 425-6116
OUTSIDE OF NYC 1-800-221-5822
