LEBENTHAL FUNDS, INC.
SEMI-ANNUAL REPORT
MAY 31, 1998
(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 well versus their peer funds. For the
twelve months ended May 31,1998, Lipper Analytical Services, Inc., (Lipper)
ranked the $143.4 million Lebenthal New York Fund--class A #7 of the 90 NY
funds listed as being peer funds. For the three years ended May 31,1998, Lipper
ranked the NY Fund--class A #3 out of 80 peer funds. For the five years ended
May 31,1998, Lipper ranked the NY Fund--class A #1 out of 49 peer funds.
The performance records of the $7.9 million Lebenthal New Jersey and $15.3
million Lebenthal Taxable Municipal Bond funds relative to their peers have
also been excellent.
Total returns as provided by Lipper are historical and do not include the sales
charge of 4.5%. Fees waived by the Lebenthal New Jersey and Lebenthal Taxable
Municipal Bond Funds may have had a material effect on the total return figures.
For the year ended May 31, Lipper ranked (a) the Lebenthal New Jersey Fund #2
of 57 New Jersey funds listed as being peer funds and (b) the Lebenthal Taxable
Municipal Fund #5 of 138 taxable funds listed as being peer funds. For the
three years ended May 31, Lipper ranked (a) the New Jersey Fund #1 of 48 New
Jersey funds listed as being peer funds and (b) the Taxable Municipal Fund #2
out of 138 taxable funds listed as being peer funds.
The total return statistics of the Lebenthal funds for the year ended May
31,1998, were 10.50% for the New York Fund, 10.21% for the New Jersey Fund, and
16.50% 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 1,1997, reinvested the monthly dividends, and
sold on May 31,1998, would have offset the full sales charge and still have
received $1,055.20 from the New York Fund, $1,052.10 from the New Jersey Fund,
and $1,111.80 from the Taxable Municipal Fund.
The total return statistics of the Lebenthal funds for the three years ended
May 31,1998, were 26.37% for the New York Fund, 26.45% for the New Jersey Fund,
and 36.01% 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 1,1995, reinvested the monthly dividends,
and sold on May 31,1998, would have offset the full sales charge and still have
received $1,207.60 from the New York Fund, $1,207.70 from the New Jersey Fund,
and $1,298.89 from the Taxable Municipal Fund.
The cumulative total return of the Lebenthal New York Fund for the five years
ended May 31,1998, was 39.52% excluding the 4.5% maximum sales charge and
33.12% if the full 4.5% load had been paid on June 1,1993. All total return
figures assume reinvestment of monthly dividends and capital gains and
fluctuations in share prices.
The cumulative total return of each fund, assuming payment of a full 4.5% load,
from inception through May 31,1998, was (a) 63.98% for the Lebenthal New York
Municipal Bond Fund (June 24,1991); (b) 18.80% for the Lebenthal New Jersey
Bond Fund (December 1,1993); and (c) 38.33% for the Lebenthal Taxable Municipal
Bond Fund (December 1,1993).
The SEC yields of the three funds at their May 31, 1998, offering prices were:
New York, 4.21%; New Jersey, 4.28%; and Taxable Municipal, 5.88%. SEC yield
quotations are based on investment income per share earned during a particular
30 day period, less expenses accrued during such period (net investment
income), and are computed by dividing the fund's net investment income by its
share price on the last day of the period in accordance with the formula
prescribed by the SEC.
Each of the Lebenthal Funds has been and continues to be positioned defensively
in high quality securities that can be readily sold if market conditions
change. We think that caution is desirable because fixed-income investors could
eventually redirect their attention from the Asian financial debacle to the
extremely strong growth of the economies in the U.S., Canada, Mexico, Brazil,
and most of Europe. In other words, we think the downside risk in bonds
outweighs the upside potential over the next year. Please note that we are only
"cautious", not bearish. For the long run, we think that tax-exempt bonds are
good buys at current yield levels versus other investment alternatives and
versus inflation. In any case, we are almost always fully invested because we
have learned that successfully forecasting interest-rate inflection points is
largely impossible.
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.
Note: Past performance is no guarantee of the future. No assurance can be given
that the funds will achieve their objectives. Share price and investment return
will fluctuate, and on the day you sell, the value of your shares may be worth
more or less than the original investment. For more complete information,
including all sales charges, send for a free prospectus. Read it carefully
before you invest or send money.
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, 1998 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- ------- --------
MUNICIPAL BONDS (97.19%)
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,600,000 Long Island Power Authority, New York Electric System,
5.50%, due 12/01/29 $ 1,616,080 Baa1 A-
760,000 Metropolitan Trans Authority, New York Commuter Facility,
5.375%, due 07/01/27, (FGIC Insured) 772,988 Aaa AAA
1,000,000 Metropolitan Trans Authority, New York Commuter Facility -
Series R,
5.50%, due 07/01/17 1,021,220 Baa1 BBB+
2,100,000 Metropolitan Trans Authority, New York Commuter Facility -
Series A,
5.25%, due 07/01/28 2,068,647 Baa1 BBB+
1,285,000 Monroe County, New York IDA Civic Facility
(DePaul Community Facility),
6.50%, due 02/01/24, (SONYMA Insured) 1,410,326 Aa
500,000 Monroe County, New York IDA Civic Facility (Nazareth College),
5.25%, due 04/01/23, (MBIA Insured) 499,965 Aaa AAA
405,000 New York, New York, (Prerefunded) - Series C,
7.25%, due 08/15/24 444,390 AAA BBB+
1,265,000 New York, New York (Unrefunded Balance) -
Series C, General Obligation,
7.25%, due 08/15/24 1,367,022 A3 BBB+
2,035,000 New York, New York-Series I, General Obligation,
6.25%, due 04/15/27 2,319,696 A3 BBB+
2,365,000 New York, New York (Unrefunded Balance) - Series C,
6.25%, due 04/15/27 2,566,924 A3 BBB+
1,150,000 New York, New York, City Municipal Water - Series B,
5.75%, due 06/15/26, (MBIA Insured) 1,215,562 Aaa AAA
1,705,000 New York State Dormitory Authority (Health Facilities),
5.50%, due 05/15/24, (FSA Insured) 1,752,348 Aaa AAA
2,400,000 New York State Dormitory Authority (Saint Vincent's Hospital),
7.40%, due 08/01/30, (FHA Insured) 2,652,624 Aa2 AAA
6,990,000 New York State Dormitory Authority (Highlands Living),
6.60%, due 02/01/34, (FHA Insured) 7,747,087 AA
2,330,000 New York State Dormitory Authority
(Presbyterian Residential Community),
6.50%, due 08/01/34, (FHA Insured) 2,538,698 AA
3,500,000 New York State Dormitory Authority
(Jewish Geriatric - Long Island),
7.35%, due 08/01/29, (FHA Insured) 4,042,115 AAA
5,190,000 New York State Dormitory Authority (Niagara Frontier Home),
6.40%, due 02/01/35, (FHA Insured) 5,684,555 AA
1,000,000 New York State Dormitory Authority
(St. Lukes Home Residential Health),
6.375%, due 08/01/35, (FHA Insured) 1,099,150 AA
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1998 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- ------- --------
MUNICIPAL BONDS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 3,900,000 New York State Dormitory Authority
(Nottingham Retirement Community),
6.125%, due 07/01/25, (SONYMA Insured) $ 4,240,782 Aa
4,755,000 New York State Dormitory Authority (Geneva Nursing Home),
6.20%, due 08/01/35, (FHA Insured) 5,167,734 AA
3,300,000 New York State Dormitory Authority (Ellis Hospital),
5.60%, due 08/01/25, (MBIA/FHA Insured) 3,402,333 Aaa AAA
5,750,000 New York State Dormitory Authority (Nursing Home-St. Johns Health),
6.25%, due 02/01/36, (FHA Insured) 6,281,588 AA
2,730,000 New York State Dormitory Authority (Jewish Home of Central NY),
LOC Onbank & Trust Co., 6.25%, due 07/01/25 2,995,056 Aaa
500,000 New York State Dormitory Authority (Dept. Of Education),
5.75%, due 07/01/21 526,570 Aaa AAA
2,400,000 New York State Dormitory Authority (Nursing Home),
6.125%, due 02/01/36, (FHA Insured) 2,571,504 AAA
3,000,000 New York State Dormitory Authority (Methodist Hospital),
6.05%, due 02/01/34, (AMBAC/FHA Insured) 3,270,180 Aaa AAA
750,000 New York State Dormitory Authority
(Grace Manor Health Care Facility),
6.15%, due 07/01/18, (SONYMA Insured) 826,335 Aa2
4,000,000 New York State Dormitory Authority (Nursing Home-Menorah Campus),
6.10%, due 02/01/37, (FHA Insured) 4,284,880 AAA
700,000 New York State Dormitory Authority (Millard Fillmore Hospital),
5.375%, due 02/01/32, (AMBAC/FHA Insured) 707,273 Aaa AAA
1,000,000 New York State Dormitory Authority
(Nursing Home-Rosalind & Joseph),
5.70%, due 02/01/37, (AMBAC/FHA Insured) 1,042,970 Aaa AAA
750,000 New York State Dormitory Authority (Chapel Oaks Inc.),
5.45%, due 07/01/26, (LOC-Allied Irish Bank) 755,910 Aa3
2,000,000 New York State Dormitory Authority
(Hospital United Health Services),
5.375%, due 08/01/27, (AMBAC/FHA Insured) 2,026,680 AAA
2,570,000 New York State Dormitory Authority
(State University Educational Facilities),
5.125%, due 05/15/27 2,511,173 A3 A-
1,500,000 New York State Dormitory Authority
(Hunts Point Multi-Service Center),
5.625%, due 07/01/22, (SONYMA Insured) 1,549,605 Aa2
1,000,000 New York State Dormitory Authority
(FHA-Hospital New York Presbyterian),
5.00%, due 08/01/32, (AMBAC Insured) 965,030 Aaa AAA
500,000 New York State Dormitory Authority (Saint Barnabas Hospital),
5.45%, due 08/01/35, (AMBAC/FHA Insured) 509,740 Aaa AAA
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1998 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- ------- --------
MUNICIPAL BONDS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 New York State Dormitory Authority (FHA-Nursing Home -
Center for Nursing), 5.55%, due 08/01/37, (FHA Insured) $ 1,022,130 AA
1,000,000 New York State Energy Research & Development Authority -
Electric Facilities - (Long Island Lighting), 7.15%, due 02/01/22 1,099,220 Ba1 A-
1,000,000 New York State Energy Research &
Development Authority-Gas Facilities,
(Brooklyn Union Gas), 6.75%, due 02/01/24, (MBIA Insured) 1,090,640 Aaa AAA
500,000 New York State Energy Research & Development Authority -
Pollution Control - (Niagara Mohawk Power Corporation),
6.625%, due 10/01/13, (FGIC Insured) 542,970 Aaa AAA
3,400,000 New York State Housing Finance Agency
(Phillips Village Project - Series A),
7.75%, due 08/15/17, (FHA/SONYMA Insured) 3,781,990 A2
1,500,000 New York State Housing Finance Agency
(Insured-Multifamily Mortgage -
Series C), 6.50%, due 08/15/24, (FHA Insured) 1,572,240 Aa2 AAA
1,990,000 New York State Housing Finance Agency
(Housing Project Mortgage -
Series A), 6.125%, due 11/01/20, (FSA Insured) 2,153,618 Aaa AAA
2,515,000 New York State Housing Finance Agency
(Multifamily Housing - Second Mortgage - Series C),
6.10%, due 08/15/28, (SONYMA Insured) 2,659,210 Aa2
2,000,000 New York State Housing Finance Agency
(Multifamily Housing - Series D),
6.10%, due 11/15/36, (FHA Insured) 2,135,460 AAA
1,750,000 New York State Medical Care Facilities Finance
Agency (Hospital & Nursing
Home) - Series D, 6.60%, due 02/15/31, (FHA Insured) 1,913,905 AAA
6,750,000 New York State Medical Care Facilities
Finance Agency - Series B,
6.60%, due 08/15/34, (FHA Insured) 7,484,265 Aa2 AA
60,000 New York State Medical Care Facilities Finance Agency,
7.30%, due 02/15/21 66,310 A3 A-
5,300,000 New York State Medical Care Facilities Finance
Agency - Series A,
6.90%, due 08/15/34, (AMBAC/FHA Insured), Prerefunded 6,188,015 Aaa AAA
6,950,000 New York State Medical Care Facilities Finance
Agency - Mortgage Project -
Series C, 6.375%, due 08/15/29, (FHA Insured) 7,575,778 Aa2 AA
2,505,000 New York State Medical Care Facilities Finance Agency
(Mortgage Project - Series A),
6.50%, due 02/15/35, (FHA Insured) 2,754,222 Aa2 AA
5,000,000 New York State Medical Care Facilities
Finance Agency (Mortgage Project -
Series E), 6.375%, due 02/15/35, (FHA Insured) 5,481,550 Aa2 AA
1,000,000 New York State Urban Development Corp, (Senior Lien Corp.),
5.50%, due 07/01/26, (HUD Insured) 1,025,640 Aaa AAA
1,600,000 Oswego County New York Development Agency,
(Seneca Hill Project -
Series A), 5.65%, due 08/01/37, (FHA Insured) 1,653,456 AA
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1998 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- ------- --------
MUNICIPAL BONDS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 600,000 Oswego County New York Development Agency, (Saint Luke
Residential Health - Series A), 5.40%, due 02/01/38, (FHA Insured)$ 604,608 AAA
1,000,000 Otsego County New York Development Agency, (Bassett Healthcare
Project B), 5.375%, due 11/01/20, (MBIA Insured) 1,011,260 AAA
3,000,000 Syracuse New York Housing Authority-Series A,
5.80%, due 08/01/37, (FHA Insured) 3,134,400 AAA
TOTAL MUNICIPAL BONDS (COST $128,448,739) 139,405,627
SHARES
- ------------
CLOSED-END FUNDS (.79%)
_______________________________________________________________________________________________________________________
77,428 Muniyield New York Insured Fund II 1,137,224
TOTAL CLOSED-END FUNDS (COST $1,120,355) 1,137,224
TOTAL INVESTMENTS (97.98%) (COST $129,569,094)# 140,542,851
CASH AND OTHER ASSETS, NET OF LIABILITIES (2.02%) 2,895,657
NET ASSETS (100.00%) $ 143,438,508
</TABLE>
# AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS IDENTICAL.
AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION, BASED ON COST FOR
FEDERAL INCOME TAX PURPOSES, ARE $10,980,025 AND $6,268 RESPECTIVELY, RESULTING
IN NET UNREALIZED APPRECIATION OF $10,973,757.
KEY:
AMBAC = AMBAC INDEMNITY CORPORATION
FGIC = FINANCIAL GUARANTY INSURANCE CORPORATION
FHA = FEDERAL HOUSING ADMINISTRATION
DHUD = DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FSA = FINANCIAL SECURITY ASSURANCE, INC.
MBIA = MUNICIPAL BOND INSURANCE ASSOCIATION
MHRB = MULTI-FAMILY HOUSING REVENUE BOND
SONYMA = STATE OF NEW YORK MORTGAGE AGENCY
LOC = LETTER OF CREDIT
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
MAY 31, 1998 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- ------- --------
MUNICIPAL BONDS (88.90%)
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <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) $ 143,474 Aaa AAA
110,000 Essex County, New Jersey Import Authority County Correctional
Facility - Series A, 5.70%, due 01/01/27, (FGIC Insured) 115,879 Aaa AAA
70,000 Essex County, New Jersey Import Authority
Orange School District - Series A,
6.95%, due 07/01/14, (MBIA Insured) 81,004 Aaa AAA
200,000 Guam Housing Corp., Single Family - Series A,
5.75%, due 09/01/31, (FHLMC Insured) 211,382 AAA
100,000 Irvington, New Jersey Housing & Mortgage Finance Authority,
6.50%, due 02/01/24, (FHA Insured) 106,232 AAA
300,000 Middlesex County New Jersey Import Authority, 5.90%, due 9/15/21 322,245 A1 A+
100,000 New Jersey Economic Development Authority, Economic Development
Revenue - American Airlines Inc. Project, 7.10%, due 11/01/31 108,759 Baa2 BBB-
250,000 New Jersey Economic Development Authority, Economic Development
Revenue - Bancroft Incorporated Obligation Group,
6.05%, due 12/01/25, (Connie Lee Insured) 272,175 AAA
150,000 New Jersey Economic Development Authority, Economic Development
Revenue Refunding - Burlington Coat Factory, 6.125%, due 09/01/10,
(LOC - First Union National Bank) 164,460 Aa3
150,000 New Jersey Economic Development Authority, Economic Development
Revenue W.Y. Urban Holding Company, 6.50%, due 06/01/15,
(LOC - Natwest Bank) 163,623 A
200,000 New Jersey Economic Development Authority, Economic Development
Revenue Heath Village Project, 6.00%, due 05/01/16,
(LOC - First Union National Bank) 216,066 A+
100,000 New Jersey Economic Development Authority, Pollution Control Revenue
PSE&G Co. Project, 6.40%, due 05/01/32, (MBIA Insured) 108,481 Aaa AAA
100,000 New Jersey Economic Development Authority, N. J. American Water Co.
Project A, 6.875%, due 11/01/34, (FGIC Insured) 113,000 Aaa AAA
85,000 New Jersey Health Care Facilities Financing
Authority - Irvington General Hospital Issue - Series 1994,
6.40%, due 08/01/25, (FHA Insured) 93,740 AAA
125,000 New Jersey Health Care Facilities Financing Authority - General
Hospital Center at Passaic, 6.75%, due 07/01/19, (FSA Insured) 151,105 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) 110,075 Aaa AAA
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1998 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- ------- --------
MUNICIPAL BONDS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <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) $ 162,011 AAA
100,000 New Jersey Health Care Facilities Financing Authority,
AHS Hospital - Series A,
5.00%, due 07/01/27, (AMBAC Insured) 97,599 Aaa AAA
25,000 New Jersey Health Care Facilities Financing Authority Revenue
Capital Health System Obligation Group, 5.25%, due 07/01/27 24,851 Baa1 A-
100,000 New Jersey Health Care Facilities Financing Authority Revenue
Community Medical Center/Kimball,
5.50%, due 07/01/08, (FSA Insured) 107,529 Aaa AAA
235,000 New Jersey Health Care Facilities Financing Authority Revenue
Cathedral Health Services, 5.25%, due 08/01/21, (MBIA/FHA Insured) 236,001 Aaa AAA
250,000 New Jersey Health Care Facilities Financing Authority
Revenue Medical Center at Princeton Obligation Group,
5.00%, due 07/01/28, (AMBAC Insured) 244,282 Aaa AAA
100,000 New Jersey Economic Development Authority Revenue Economic
Growth - Series D, 6.55%, due 08/01/14, (LOC - Natwest Bank) 109,275 A
100,000 New Jersey Economic Development Authority Revenue
Sewage Facilities, Anheuser-Busch Project, 5.85%, due 12/01/30 106,758 A1 A+
150,000 New Jersey State Education Facilities Authority - Trenton State
College - Series E, 6.00%, due 07/01/19, (AMBAC Insured) 161,279 Aaa AAA
290,000 New Jersey State Education Facilities Authority -
Monmouth University, 5.40%, due 07/01/06 303,517 Baa2 BBB
100,000 New Jersey State Education Facilities Authority -
New Jersey Institute Technology Issue - Series A,
6.00%, due 07/01/24, (MBIA Insured) 108,594 Aaa AAA
375,000 New Jersey State Educational Facilities Authority
Kean University - Series A,
5.00%, due 07/01/27, (AMBAC Insured) 368,212 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) 265,553 Aaa AAA
75,000 New Jersey State Higher Education Assistance Authority -
Student Loan Revenue - Series A,
5.30%, due 06/01/17, (AMBAC Insured) 75,000 AAA
125,000 New Jersey State Housing & Mortgage Finance Agency MHRB
Refunding - Presidential Plaza,
7.00%, due 05/01/30, (FHA Insured) 135,414 AAA
300,000 New Jersey State Housing & Mortgage Finance Agency MHRB
Series A, 6.05%, due 11/01/20, (AMBAC Insured) 318,006 Aaa AAA
100,000 New Jersey State Housing & Mortgage Finance Agency MHRB
Series A, 6.25%, due 05/01/28, (AMBAC Insured) 106,854 Aaa AAA
75,000 New Jersey State Housing & Mortgage Finance Agency, Multi-Family
Housing - Series A, 5.65%, due 05/01/40, (AMBAC Insured) 76,708 Aaa AAA
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1998 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- ------- --------
MUNICIPAL BONDS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 125,000 New Jersey State Housing & Mortgage Finance Agency
Revenue Housing - Series A, HUD Section 8,
6.95%, due 11/01/13 $ 134,755 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 160,614 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) 153,594 AAA
800,000 Port Authority of New York & New Jersey Special Obligation
Revenue JFK International Air Terminal- Series 6,
5.75%, due 12/01/22 843,408 Aaa AAA
100,000 Puerto Rico Commonwealth, 4.875%, due 07/01/23, (MBIA Insured) 96,968 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 105,544 Aaa AAA
TOTAL MUNICIPAL BONDS (COST $6,519,261) 6,984,026
SHARES
- ------------
CLOSED-END FUNDS (9.77%)
- ------------------------------------------------------------------------------------------------------------------------
13,326 Muniyield New Jersey Insured Fund 206,553
22,700 Munivest New Jersey Fund 310,706
16,489 Muniyield New Jersey Fund 250,427
TOTAL CLOSED-END FUNDS (COST $772,582) 767,686
TOTAL INVESTMENTS (98.67%)(COST $7,291,843)# 7,751,712
CASH AND OTHER ASSETS, NET OF LIABILITIES (1.33%) 104,657
NET ASSETS (100.00%) $ 7,856,369
</TABLE>
# AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS IDENTICAL.
AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION, BASED ON COST FOR
FEDERAL INCOME TAX PURPOSES, ARE $466,279 AND $6,410, RESPECTIVELY, RESULTING
IN NET UNREALIZED APPRECIATION OF $459,869.
KEY:
AMBAC = AMBAC INDEMNITY CORPORATION
AMT = ALTERNATIVE MINIMUM TAX
FGIC = FINANCIAL GUARANTY INSURANCE CORPORATION
FHA = FEDERAL HOUSING AUTHORITY
FHLMA = FEDERAL HOME LOAN MORTGAGE ASSOCIATION
FSA = FINANCIAL SECURITY ASSURANCE, INC.
FNMA = FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA = GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
DHUD = DEPARTMENT OF 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, 1998 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- ------- --------
MUNICIPAL BONDS (100.29%)
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 150,000 All Saints Health System, 9.00%, due 08/15/24, (MBIA Insured) $ 168,853 Aaa AAA
700,000 Atlanta & Fulton County Georgia-Downtown Arena Project,
7.00%, due 12/01/28, (FSA Insured) 706,048 Aaa AAA
385,000 Baltimore, Maryland - Series B, General Obligation,
7.90%, due 10/15/16, (FGIC Insured) 416,628 Aaa AAA
1,100,000 Bastrop, Texas Economic Development Corporation,
8.00%, due 08/15/16 1,154,351 BBB+
100,000 Buffalo, New York - Series F,
9.05%, due 02/01/15, (AMBAC Insured) 105,614 Aaa AAA
240,000 California Housing Finance Agency - Series C,
8.10%, due 02/01/37, (AMBAC Insured) 256,205 Aaa AAA
700,000 Cedartown Georgia Development Authority, Industrial
Park Project A,
7.00%, due 02/01/22, (AMBAC Insured) 709,590 Aaa AAA
2,000,000 Compton, California Community Redevelopment Agency - Series C,
Tax Allocation, 0.00%*, due 08/01/22, (FSA Insured) 400,000 Aaa AAA
150,000 Connecticut State Health and Educational Facilities,
Maefair Health Care, 9.20%, due 11/01/24 186,180 A1 AA-
150,000 Connecticut State Health and Educational Facilities,
Shady Knoll Center, 8.90%, due 11/01/24 178,845 A1 AA-
255,000 Connecticut State Housing Finance Authority - Series F,
9.25%, due 05/15/27 291,488 Aa2 AA
200,000 Connecticut State Housing Finance Authority - Series G,
7.625%, due 05/15/21 214,740 Aa2 AA
100,000 Connecticut State Development Authority - Sub series B1,
8.50%, due 08/15/14 109,056 A+
125,000 Conyers, Georgia Water & Sewer - Series B,
8.75%, due 07/01/15, (AMBAC Insured) 138,970 Aaa AAA
250,000 Cuyahoga County, Ohio Economic Development - Series A,
8.625%, due 06/01/22 286,025 A
100,000 Dallas-Fort Worth Texas International, Airport Facilities,
7.07%, due 11/01/24, (MBIA Insured) 101,960 Aaa AAA
200,000 Florida Housing Finance Agency - Taxable Housing Mariner Club,
8.25%, due 09/01/15, (AMBAC Insured) 215,888 Aaa AAA
1,230,000 Harrisburg, Pennsylvania - Series A, General Obligation,
0.00%*, due 04/01/18, (AMBAC Insured) 334,068 Aaa AAA
1,165,000 Harrisburg, Pennsylvania - Series A, General Obligation,
0.00%*, due 04/01/19, (AMBAC Insured) 296,259 Aaa AAA
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1998 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- ------- --------
MUNICIPAL BONDS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 350,000 Harrison County, Mississippi - Series A, General Obligation,
7.75%, due 04/01/16, (MBIA Insured) $ 364,192 Aaa
150,000 Idaho Housing Agency, HUD Section 8, 8.50%, due 07/01/09 162,105 A
150,000 Illinois Housing Development Authority,
8.64%, due 12/01/21, (AMBAC Insured) 162,268 Aaa AAA
2,180,000 Kern County, California Pension Obligation,
0.00%*, due 08/15/18, (MBIA Insured) 578,790 Aaa AAA
325,000 Maryland State Community Development Administration,
9.10%, due 05/15/10, (MHF Insured) 357,110 Aa3
150,000 Memorial Health System, 8.375%, due 10/01/20, (MBIA Insured) 166,755 Aaa AAA
200,000 Michigan State Housing Development Authority - Series A,
8.30%, due 11/01/15, (AMBAC Insured) 223,298 Aaa AAA
50,000 Minnesota State Housing Finance Agency - Series B,
8.00%, due 02/01/18 53,205 AA
50,000 Minnesota State Housing Finance Agency - Series G,
8.05%, due 01/01/12 53,076 Aa2 AA+
600,000 Mississippi Hospital Equipment and Facilities,
Wellesley Health Systems, 9.10%, due 04/01/06 691,140 AAA
80,000 New Hampshire State Housing and Finance Authority - Series C,
9.40%, due 07/01/14 88,418 Aa2
240,000 New Jersey State Housing and Mortgage Finance Agency - Series E,
8.95%, due 11/01/12 264,036 AA-
700,000 New York State Dormitory Authority Revenue,
Highland Hospital - Series B,
7.45%, due 08/01/35, (MBIA Insured) 724,360 Aaa AAA
250,000 New York State Environmental Facilities - Series A,
9.625%, due 03/15/21 285,310 Baa1 BBB+
300,000 New York State Housing Finance Agency - Series B,
8.25%, due 05/15/35, (FHA Insured) 313,719 AAA
350,000 New York State Housing Finance Agency Revenue - Multi-family
Series C, 8.11%, due 11/15/38, (FHA Insured) 381,430 AAA
110,000 New York State Housing Finance Agency - Series B,
Service Contract Obligation, 8.60%, due 03/15/04 119,878 Baa1 BBB+
100,000 Pittsburgh, Pennsylvania Urban Redevelopment Authority,
9.07%, due 09/01/14, (FSA Insured) 115,040 Aaa AAA
300,000 Sacramento County, California,
0.00%**, due 08/15/21, (MBIA Insured) 335,445 Aaa AAA
120,000 Southeastern Pennsylvania Transit Authority - Series B,
8.75%, due 03/01/20, (FGIC Insured) 134,356 Aaa AAA
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1998 (UNAUDITED)
_______________________________________________________________________________
<TABLE>
<CAPTION>
RATINGS
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- ------- --------
MUNICIPAL BONDS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 300,000 Tampa, Florida Sports Authority,
8.07%, due 10/01/26, (MBIA Insured) $ 323,805 Aaa AAA
375,000 Texas State Department of Housing & Community Affairs -
Series C1, 7.76%, due 09/01/17, (MBIA Insured) 398,576 Aaa AAA
300,000 Texas State Veterans Housing, General Obligation,
7.35%,due 12/01/21 310,296 Aa2 AA
1,050,000 United Nations Development Corporation Refunded,
8.80%, due 07/01/26 1,220,657 AAA
500,000 Virginia State Housing Development Authority
Commonwealth Mortgage, 7.80%, due 07/01/17 530,820 Aa1 AA+
365,000 Virginia State Housing Development Authority - Series A,
Multi-family, 8.125%, due 11/01/15 389,930 Aa1 AA+
350,000 Wisconsin Housing & Economic Development Authority - Series H,
7.875%, due 03/01/26 371,284 Aa2 AA
TOTAL MUNICIPAL BONDS (COST $14,082,983) 15,390,067
TOTAL INVESTMENTS (100.29%)(COST$14,082,983)# 15,390,067
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS (-0.29%) (44,991)
NET ASSETS (100.00%) $ 15,345,076
</TABLE>
# AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS IDENTICAL.
AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION, BASED ON COST FOR
FEDERAL INCOME TAX PURPOSES, ARE $1,307,084 AND $0, RESPECTIVELY, RESULTING IN
NET UNREALIZED APPRECIATION OF $1,307,084.
* ZERO COUPON BOND
** ZERO COUPON BOND UNTIL 08/15/98
KEY:
AMBAC = AMBAC INDEMNITY CORPORATION
FGIC = FINANCIAL GUARANTY INSURANCE CORPORATION
FHA = FEDERAL HOUSING AUTHORITY
FSA = FINANCIAL SECURITY ASSURANCE, INC.
DHUD = DEPARTMENT OF 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, 1998 (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 $129,569,094, $7,291,843
and $14,082,983) $ 140,542,851 $ 7,751,712 $ 15,390,067
Cash -- 27,717 --
Receivables:
Securities sold 2,409,464 -- --
Capital shares sold 1,140,708 15,655 21,750
Interest and Dividends -- 116,277 280,059
Due from Manager 14,908 70,820 57,900
Deferred organization expenses -- 3,883 3,133
Total assets 144,107,931 7,986,064 15,752,909
LIABILITIES
Payables:
Securities purchased -- 75,287 --
Capital shares redeemed 48,539 -- 113,886
Due to custodian 68,638 -- 202,480
Dividends declared 413,874 23,106 58,657
Distribution fee payable (Note 3) 31,073 -- --
Management fee payable (Note 2) 27,764 1,654 3,267
Administration fee payable 25,521 1,915 2,395
Accrued Directors' fees 2,661 163 299
Accrued expenses and other liabilities 51,353 27,570 26,849
Total liabilities 669,423 129,695 407,833
NET ASSETS 143,438,508 7,856,369 15,345,076
NET ASSETS CONSIST OF:
Par value 17,037 1,113 2,040
Paid in capital 132,897,628 7,666,721 14,363,740
Undistributed investment
income - net 8,544 -- --
Accumulated net realized loss on
investments (458,458) (271,334) (327,788)
Unrealized appreciation on
investments - net 10,973,757 459,869 1,307,084
Total net assets $ 143,438,508 $ 7,856,369 $ 15,345,076
CLASS A
Net Assets $ 142,688,622 $ 7,856,369 $ 15,345,076
Shares outstanding (Note 4) 16,948,187 1,113,174 2,039,989
Net asset value, and redemption
price per share $ 8.42 $ 7.06 $ 7.52
Maximum offering price per share* $ 8.82 $ 7.39 $ 7.87
CLASS B
Net Assets $ 749,886 $ -- $ --
Shares outstanding (Note 4) 89,025 -- --
Net asset value, and redemption
price per share** $ 8.42 $ -- $ --
* THE SALES CHARGE FOR CLASS A 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.
** CLASS B SHARES ARE SOLD WITHOUT AN INITIAL SALES CHARGE, BUT ARE SUBJECT TO
A 5% CONTINGENT DEFERRED SALES CHARGE IF SHARES ARE REDEEMED WITHIN 11 MONTHS,
REDUCED ON SHARES HELD OVER 12 MONTHS.
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)
_______________________________________________________________________________
LEBENTHAL LEBENTHAL LEBENTHAL
NEW YORK NEW JERSEY TAXABLE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
---------- ---------- -----------
INVESTMENT INCOME
Income:
Interest $ 4,024,182 $ 182,638 $ 561,689
Dividends 14,249 16,789 4,906
Total income 4,038,431 199,427 566,595
Expenses:
Management fee (Note 2) 159,056 8,975 19,391
Distribution fee
- Class A (Note 3) 174,529 8,975 19,391
- Class B (Note 3) 1,045 -- --
Shareholder servicing fees
- Class A 45,089 14,437 16,556
- Class B 13,920 -- --
Administration fee 72,712 3,079 7,372
Printing 12,886 514 1,366
Custodian fee 7,253 2,532 2,546
Interest 2,121 41 296
Legal and compliance fees 24,917 2,843 673
Audit and accounting fees 34,460 22,954 24,900
Directors' fees 3,817 168 418
Registration fees
- Class A 6,146 2,878 3,463
- Class B 1,455 -- --
Amortization of organization
expenses (Note 1) -- 3,862 3,116
Other 37 289 834
Total expenses 559,443 71,547 100,322
Less: Reimbursement of
expenses by Manager (Note 2) (13,863) (39,995) (25,651)
Fees waived by
Distributor (Note 3) (1,045) (8,975) (19,391)
Fees paid indirectly (Note 1) (826) (431) (514)
Net expenses 543,709 22,146 54,766
Net investment income 3,494,722 177,281 511,829
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net realized gain/(loss) on
investments 211,113 (6,705) 34,114
Change in unrealized appreciation
of investments 1,374,252 81,457 267,761
Net realized and unrealized gain
on investments 1,585,365 74,752 301,875
Increase in net assets from
operations $ 5,080,087 $ 252,033 $ 813,704
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
_______________________________________________________________________________
LEBENTHAL LEBENTHAL
NEW YORK MUNICIPAL NEW JERSEY MUNICIPAL
BOND FUND BOND FUND
-------------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
MAY 31, 1998 NOV. 30, MAY 31, 1998 NOV. 31,
(UNAUDITED) 1997 (UNAUDITED) 1997
----------- --------- ------------- --------
INCREASE (DECREASE)
IN NET ASSETS
Operations:
Net investment income 3,494,722 $ 6,460,590 $ 177,281 $ 279,289
Net realized gain
(loss) on
investments 211,113 1,262,317 (6,705) 28,867
Change in unrealized
appreciation 1,374,252 2,368,635 81,457 153,909
Increase in net assets
from operations 5,080,087 10,091,542 252,033 462,065
Dividends from net
investment income
Class A shares (3,489,396) (6,461,498) (177,281) (279,289)
Class B shares (5,326) -- -- --
Capital share
transactions
(Note 4) 7,709,083 7,902,703 1,660,033 756,659
Total increase 9,294,448 11,532,747 1,734,785 939,435
Net assets:
Beginning of period 134,144,060 122,611,313 6,121,584 5,182,149
End of period (1) $ 143,438,508 $ 134,144,060 $ 7,856,369 $ 6,121,584
(1) Includes
Undistributed
Net Investment
Income $ 8,544 $ 8,544 $ -- $ --
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
_______________________________________________________________________________
LEBENTHAL TAXABLE MUNICIPAL
BOND FUND
---------------------------
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1998 NOVEMBER 30,
(UNAUDITED) 1997
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 511,829 $ 1,010,769
Net realized gain (loss) on investments 34,114 97,125
Change in unrealized appreciation 267,761 404,164
Increase in net assets from operations 813,704 1,512,058
Dividends from net investment income (511,829) (1,010,769)
Capital share transactions (Note 4) 49,327 (114,600)
Total increase 351,202 386,689
Net assets:
Beginning of period 14,993,874 14,607,185
End of period (1) $ 15,345,076 $ 14,993,874
(1)Includes Undistributed Net
Investment Income $ -- $ --
_______________________________________________________________________________
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 - CLASS A
--------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED NOVEMBER 30,
MAY 31, 1998 ------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994# 1993
------------ ----- ----- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 8.32 $ 8.09 $ 7.99 $ 6.84 $ 8.03 $ 7.54
Income from investment operations:
Net investment income 0.21 0.42 0.41 0.43 0.41 0.44
Net realized and unrealized gain
(loss) on investments 0.10 0.23 0.10 1.15 (1.15) 0.50
Total from investment operations 0.31 0.65 0.51 1.58 (0.74) 0.94
Less distributions:
Dividends from net investment
income (0.21) (0.42) (0.41) (0.43) (0.41) (0.44)
Distributions from net realized gain
on investments -- -- -- -- (0.04) (0.01)
Total distributions (0.21) (0.42) (0.41) (0.43) (0.45) (0.45)
Net asset value, end of period $ 8.42 $ 8.32 $ 8.09 $ 7.99 $ 6.84 $ 8.03
TOTAL RETURN (1)
(without deduction of sales load) 3.73 % 8.27% 6.63%* 23.56% (9.62)% 12.63%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 142,689 $ 134,144 $ 122,611 $ 105,579 $ 75,326 $ 80,727
Ratios to average net assets:
Expenses (2) 0.78%** 0.89%** 1.09% 0.99% 0.64%## 0.20%##
Net investment income (2) 4.98% 5.16% 5.17% 5.63% 5.44% 5.42%
</TABLE>
# EFFECTIVE AUGUST 15, 1994, THE INVESTMENT MANAGER 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%, AND 1.12% FOR THE PERIODS
ENDED NOVEMBER 30, 1994, AND 1993, 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 LESS THAN 0.01% FOR THE NEW YORK MUNICIPAL
BOND FUND.
(1) NOT ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(2) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
_______________________________________________________________________________
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 YORK
MUNICIPAL BOND FUND - CLASS B
-----------------------------
SIX MONTHS ENDED
MAY 31, 1998*
(UNAUDITED)
-----------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 8.34
Income from investment operations:
Net investment income 0.14
Net realized and unrealized gain (loss) on investments 0.08
Total from investment operations 0.22
Less distributions:
Dividends from net investment income (0.14)
Distributions from net realized gain on investments --
Total distributions (0.14)
Net asset value, end of period $ 8.42
Total Return (1)
(without deduction of sales load) 2.65%
Ratios/Supplemental Data
Net assets, end of period (000) $ 750
Ratios to average net assets:
Expenses (2) 1.54%**
Net investment income (2) 14.07%
Portfolio turnover 30.66%
(1) NOT ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(2) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
* CLASS COMMENCED OPERATIONS ON DECEMBER 3, 1997.
** IF THE INVESTMENT MANAGER AND DISTRIBUTOR HAD NOT WAIVED FEES AND
REIMBURSED EXPENSES, THE RATIO OF OPERATING EXPENSES TO AVERAGE NET ASSETS
WOULD HAVE BEEN 12.70%.
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD:
_______________________________________________________________________________
<TABLE>
<CAPTION>
LEBENTHAL NEW JERSEY
MUNICIPAL BOND FUND
----------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED NOVEMBER 30,
MAY 31, 1998 -------------------------------------------
(UNAUDITED) 1997 1996 1995 1994#*
------------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 6.97 $ 6.74 $ 6.70 $ 5.95 $ 7.16
Income from investment operations:
Net investment income 0.17 0.35 0.36 0.36 0.32
Net realized and unrealized gain
(loss) on investments 0.09 0.23 0.04 0.75 (1.21)
Total from investment operations 0.26 0.58 0.40 1.11 (0.89)
Less distributions:
Dividends from net investment income (0.17) (0.35) (0.36) (0.36) (0.32)
Net asset value, end of period $ 7.06 $ 6.97 $ 6.74 $ 6.70 $ 5.95
TOTAL RETURN (1)
(without deduction of sales load) 3.81% 8.84% 6.18% 19.10% (12.70%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 7,856 $ 6,122 $ 5,182 $ 3,358 $ 2,145
Ratios to average net assets:
Expenses ## (2) 0.63%** 0.70%** 0.63%** 0.60% 0.60%
Net investment income (2) 4.94% 5.12% 5.37% 5.64% 4.97%
Portfolio turnover 17.93% 57.19% 28.56% 61.69% 291.60%
</TABLE>
# EFFECTIVE AUGUST 15, 1994, THE INVESTMENT MANAGER CHANGED TO LEBENTHAL
ASSET MANAGEMENT, INC.
* FUND COMMENCED OPERATIONS ON DECEMBER 1, 1993.
## 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 1.98%, 2.57%, 3.20%, 4.13%, AND
4.83% FOR THE SIX MONTHS ENDED MAY 31, 1998 AND FOR THE YEARS ENDED NOVEMBER
30, 1997, 1996, 1995 AND 1994, RESPECTIVELY, FOR THE NEW JERSEY BOND FUND.
** INCLUDES FEES PAID INDIRECTLY OF 0.01%, 0.02%, AND 0.03% FOR THE NEW JERSEY
BOND FUND, FOR 1998, 1997, AND 1996, RESPECTIVELY.
(1) NOT ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(2) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
_______________________________________________________________________________
See Notes to Financial Statements.
LEBENTHAL FUNDS, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD:
_______________________________________________________________________________
<TABLE>
<CAPTION>
LEBENTHAL NEW JERSEY
MUNICIPAL BOND FUND
----------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED NOVEMBER 30,
MAY 31, 1998 -------------------------------------------
(UNAUDITED) 1997 1996 1995 1994#*
------------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 7.37 $ 7.13 $ 7.22 $ 6.34 $ 7.16
Income from investment operations:
Net investment income 0.24 0.50 0.52 0.53 0.44
Net realized and unrealized gain
(loss) on investments 0.15 0.24 (0.09) 0.88 (0.82)
Total from investment operations 0.39 0.74 0.43 1.41 (0.38)
Less distributions:
Dividends from net investment income (0.24) (0.50) (0.52) (0.53) (0.44)
Net asset value, end of period $ 7.52 $ 7.37 $ 7.13 $ 7.22 $ 6.34
TOTAL RETURN (1)
(without deduction of sales load) 5.42% 10.89% 6.35% 23.11% (5.45%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 15,345 $ 14,994 $ 14,607 $ 8,686 $ 2,990
Ratios to average net assets:
Expenses ## (2) 0.71% 0.79%** 0.61%** 0.60% 0.60%
Net investment income (2) 6.60% 7.06% 7.34% 7.57% 6.74%
Portfolio turnover 12.58% 34.52% 44.46% 84.74% 93.73%
</TABLE>
# EFFECTIVE AUGUST 15, 1994, THE INVESTMENT MANAGER CHANGED TO LEBENTHAL
ASSET MANAGEMENT, INC.
* FUND COMMENCED OPERATIONS ON DECEMBER 1, 1993.
## 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 1.29%, 1.42%, 1.63%, 2.59%, AND
3.60% FOR THE SIX MONTHS ENDED MAY 31, 1998 AND FOR THE YEARS ENDED NOVEMBER
30, 1997, 1996, 1995 AND 1994, RESPECTIVELY, FOR THE TAXABLE BOND FUND.
** INCLUDES FEES PAID INDIRECTLY OF 0.01% FOR THE TAXABLE BOND FUND.
_______________________________________________________________________________
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") collectively, The Funds.
Effective December 3, 1997, the New York Bond Fund began to offer a second
class of shares, Class B. Class B shares are sold without an initial sales
charge but will have a higher expense ratio than Class A shares due to higher
12b-1 fees. The Company's financial statements are prepared in accordance with
generally accepted accounting principles 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. 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 or under the direction of the Board of Directors.
B) FEDERAL INCOME TAXES -
It is the Funds' policy 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 Funds' fiscal year, as declared by the Funds'
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.
For the New York Bond Fund, investment income and
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
_______________________________________________________________________________
SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
realized and unrealized gains and losses are allocated to each class based
upon the relative daily net assets of each class of share. Expenses that are
directly attributable to a class are charged only to that class. Expenses not
directly attributable to a specific class are allocated based upon the relative
daily net assets of each class of shares.
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, of $826, $431, and $514, for the New York Bond
Fund, New Jersey Bond Fund, and Taxable Bond Fund, respectively.
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. Although not required to do
so, the Manager has voluntarily agreed to reimburse expenses for the New York
Bond Fund - Class B, the New Jersey Bond Fund, and the Taxable Bond Fund
amounting to $13,863, $39,995 and $25,651, respectively.
Lebenthal & Co., Inc. retained commissions of $132,217 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.
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 a fee equal to 0.25% of the
Fund's average daily net assets for the New York Bond Fund - Class A shares,
the New Jersey Bond Fund, and the Taxable Bond Fund, and, 1.00% for the New
York Bond Fund - Class B shares. For the six months ended May 31, 1998, the
Distributor voluntarily
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
_______________________________________________________________________________
waived fees of $8,975, $19,391 and $1,045 from the New Jersey Bond Fund, the
Taxable Bond Fund, and the Class B shares of the New York Bond Fund,
respectively. There were no additional expenses borne by the Company pursuant
to the Distribution Plan.
4. CAPITAL STOCK
At May 31, 1998, 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 -
CLASS A CLASS A
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30, 1997
----------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ ---------- ------------
Sold 1,569,182 $ 13,181,895 2,533,634 $ 20,632,289
Issued as
reinvestment of
dividends 362,348 3,039,221 704,599 5,693,051
Redeemed (1,103,918) (9,259,967) (2,274,159) (18,422,637)
Net increase 827,612 $ 6,961,149 964,074 $ 7,902,703
LEBENTHAL NEW YORK
MUNICIPAL BOND FUND -
CLASS B
SIX MONTHS ENDED
MAY 31, 1998*
-----------------------
SHARES AMOUNT
--------- ---------
Sold 88,607 $ 744,429
Issued as
reinvestment of
dividends 418 3,505
Redeemed -- --
Net increase 89,025 $ 747,934
LEBENTHAL NEW JERSEY LEBENTHAL NEW JERSEY
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30, 1997
----------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ ---------- ------------
Sold 301,740 $ 2,134,075 198,467 $ 1,350,032
Issued as
reinvestment of
dividends 21,159 148,964 34,595 234,078
Redeemed (88,470) (623,006) (123,178) (827,451)
Net increase 234,429 $ 1,660,033 109,884 $ 756,659
* LEBENTHAL NEW YORK MUNICIPAL BOND FUND - CLASS B COMMENCED OPERATIONS ON
DECEMBER 3, 1997.
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
_______________________________________________________________________________
LEBENTHAL TAXABLE LEBENTHAL TAXABLE
MUNICIPAL BOND FUND MUNICIPAL BOND FUND
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30, 1997
--------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
------- ----------- -------- -----------
Sold 212,272 $ 1,590,574 399,620 $ 2,813,420
Issued as
reinvestment of
dividends 46,714 349,194 99,357 698,549
Redeemed (252,744) (1,890,441) (514,463) (3,626,569)
Net increase/
(decrease) 6,242 $ 49,327 (15,486) $ (114,600)
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
$43,178,887, $2,944,995, and $1,956,082, 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 $44,183,681,
$1,257,206, and $2,271,205, 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 $658,345 (maturing November 30,
2001), $264,623 ($249,856 and $14,767 maturing November 30, 2001 and November
30, 2004, respectively) and $353,362 ($130,361 and $223,001 maturing November
30, 2001 and November 30, 2004, respectively) 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
THEWORKHORSEOFINVESTMENTS.
