- --------------------------------------------------------------------------------
LEBENTHAL
FUNDS, INC.
Annual Report
November 30, 1998
[GRAPHIC OMITTED]
LEBENTHAL
THE WORKHOURSE OF INVESTMENTS.
<PAGE>
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120 BROADWAY, NEW YORK, NY 10271
LEBENTHAL 212-425-6116
FUNDS, INC. OUTSIDE NYC TOLL FREE 1-800-221-5822
================================================================================
Dear Shareholder:
The Lebenthal Bond Funds (the "Funds") continue to do well versus their peer
funds. For the year ended November 30, 1998, Lipper Analytical Services, Inc.,
(Lipper) ranked the $147.7 million Lebenthal New York Municipal Bond Fund -
Class A (the "New York Fund") #20 of the 98 New York funds listed as being peer
funds. For the three years ended November 30, 1998, Lipper ranked the New York
Fund - Class A #3 out of 86 peer funds. For the five years ended November 30,
1998, Lipper ranked the New York Fund - Class A #1 out of 58 peer funds.
The performance records of the $9.0 million Lebenthal New Jersey and the $17.8
million Lebenthal Taxable Municipal Bond Funds (the "New Jersey Fund" and the
"Taxable Fund") 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 New Jersey and Taxable Funds may have had a
material effect on the total return figures.
For the year ended November 30, 1998, Lipper ranked (a) the New Jersey Fund #1
of 55 New Jersey funds listed as being peer funds and (b) the Taxable Fund #3 of
147 taxable funds listed as being peer funds. For the three years ended November
30, 1998, Lipper ranked (a) the New Jersey Fund #1 of 44 New Jersey funds listed
as being peer funds and (b) the Taxable Fund #1 out of 120 taxable funds listed
as being peer funds.
The total return statistics of the Funds for the year ended November 30, 1998,
were 7.69% for the New York Fund - Class A, 8.47% for the New Jersey Fund, and
11.85% for the Taxable Fund. These figures do not reflect the maximum 4.5% sales
charge. Taking that into account, an investor who put $1,000 into each of the
funds on December 1, 1997, reinvested the monthly dividends, and sold on
November 30, 1998, would have offset the full sales charge and still have
received $1,031.70 from the New York Fund - Class A, $1,038.20 from the New
Jersey Fund, and $1,072.60 from the Taxable Fund.
The total return statistics of the Funds for the three years ended November 30,
1998, were 24.29% for the New York Fund Class A, 25.38% for the New Jersey Fund,
and 31.83% for the Taxable Fund. These figures do not reflect the maximum 4.5%
sales charge. Taking that into account, an investor who put $1,000 into each of
the funds on December 1, 1995, reinvested the monthly dividends, and sold on
November 30, 1998, would have offset the full sales charge and still have
received $1,191.40 from the New York Fund - Class A, $1,200.40 from the New
Jersey Fund, and $1,264.50 from the Taxable Fund.
The cumulative total return of the New York Fund - Class A for the five years
ended November 30, 1998, was 39.27% excluding the 4.5% maximum sales charge and
33.00% if the full 4.5% load had been paid on December 1, 1993. All total return
figures assume reinvestment of monthly dividends and capital gains and
fluctuations in share prices.
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<PAGE>
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The cumulative total return of each Fund, assuming payment of a full 4.5% load,
from inception through November 30, 1998, was (a) 70.77% for the New York Fund -
Class A (inception June 24,1991); (b) 1.45% for the New York Fund - Class B
(inception December 1, 1997) (c) 23.90% for the New Jersey Fund (inception
December 1, 1993); and (d) 47.36% for the Taxable Fund (inception December
1, 1993).
The SEC yields of the Funds at their November 30, 1998, offering prices were:
New York Fund - Class A, 4.01%; New York Fund - Class B, 3.42%; New Jersey Fund,
4.05%; and Taxable Fund, 5.50%. 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.
Because we believe that interest rates will vary little during 1999, the Funds
are positioned "neutrally". Their neutral positioning should allow them to
perform well versus competing funds and other fixed-income instruments assuming
that rates stay within 50 basis points of current yield levels - as we think
likely. However, in case our interest rate outlook changes, the securities in
each Fund are easily marketed so that we can take advantage of trading
opportunities. For the long run, we think that tax-exempt bonds are good buys at
current yield levels versus other investment alternatives and inflation. Thus,
we plan to remain almost always fully invested, particularly since 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,
/s/ James L. Gammon
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<PAGE>
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LEBENTHAL NEW YORK MUNICIPAL BOND FUND - CLASS A
PERFORMANCE COMPARISON CHART
================================================================================
The following chart compares the performance of Lebenthal New York Municipal
Bond Fund - Class A (with and without the 4.5% sales load), for the one year and
since inception periods, against the Lehman Brothers Municipal Bond Index
(Lehman Index) for the same time periods. It is important to keep in mind that
the Lehman Index excludes the effects of any fees or sales charges, and does not
reflect state-specific bond market performance.
Lebenthal New York Municipal Bond Fund - Class A
Performance Comparison Chart
[The following table was depicted as a line chart in the printed material.]
Lehman Index with sales load without sales load
------------ --------------- ------------------
10000 9550 10000
10102 9576.68 10027.9
10233.3 9643.37 10097.8
10325.4 9764.96 10225.1
11/30/91 10354.3 9750.91 10210.4
10577 10017.3 10489.3
10601.3 9912.54 10379.6
10604.5 9981.87 10452.2
10608.7 10017.6 10489.6
10703.1 10117.2 10593.9
10829.4 10310 10795.8
11011.4 10561.5 11059.1
11341.7 10996 11514.1
11230.5 10750.3 11256.8
11303.5 10777.6 11285.4
11192.8 10557.4 11054.9
11/30/92 11393.1 10890.8 11403.9
11509.3 11025.6 11545.2
11642.8 11156.2 11681.9
12064.3 11654.5 12203.7
11936.4 11525.5 12068.6
12057 11683 12233.5
12124.5 11763.9 12318.2
12327 11955 12518.3
12343 11977.6 12542
12599.7 12283.2 12862
12743.4 12424.6 13010.1
12767.6 12435 13020.9
11/30/93 12655.2 12262 12839.7
12922.4 12534.2 13124.8
13070 12678.4 13275.8
12731.5 12327.2 12908.1
12213 11658.9 12208.3
12316.2 11652.5 12201.6
12423 11800.5 12356.6
12347.1 11709.2 12260.9
12573.4 11987.3 12552.1
12616.9 12028.4 12595.2
12431.7 11751.2 12304.9
12210.9 11403.5 11940.9
11/30/94 11990.1 11073.5 11595.3
12253.9 11441.3 11980.4
12604.4 11957.4 12520.9
12971.2 12375.7 12958.9
13120.4 12477.6 13065.5
13136.1 12525.5 13115.7
13555.1 12967.8 13578.8
13437.2 12915.4 13524
13564.9 12906.5 13514.6
13737.1 13086.1 13702.7
13823.7 13165.7 13786
14024.1 13394.4 14025.5
11/30/95 14256.9 13728.9 14375.8
14393.9 13872 14525.6
14503.3 13961.9 14619.8
14404.7 13907.5 14562.8
14220.3 13664 14312.8
14180.5 13588.8 14234.1
14174.8 13609.7 14256
14329.3 13829.7 14486.5
14459.7 13980.9 14644.8
14456.8 14001.4 14666.3
14659.2 14241.9 14918.2
14824.9 14374.8 15057.5
11/30/96 15096.2 14547.6 15238.5
15032.8 14498.3 15186.7
15061.3 14471.6 15158.8
15199.9 14610.8 15304.6
14997.8 14449.6 15135.8
15123.7 14592.4 15285.3
15350.6 14784 15486.1
15514.8 14924.5 15633.2
15944.6 15473.7 16208.5
15794.7 15369.6 16099.4
15982.7 15524.4 16261.5
16085 15649.1 16392.3
11/30/97 16179.9 15748.5 16496.3
16416.1 15981.6 16740.5
16585.2 16202 16971.4
16590.2 16206.7 16976.3
16605.1 16237.5 17008.6
16530.4 16169.7 16937.5
16791.5 16434 17214.4
16857 16540.6 17326
16899.2 16589.8 17377.6
17161.1 16856.8 17657.3
17375.6 17074 17831.4
17320 16998.8 17799.8
11/30/98 17408.3 17077.2 17881.9
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Average Annual Total Return
One Five Since Commencement of Operations
Year Year June 24, 1991
Lebenthal New York - Class A
Municipal Bond Fund:
with sales load 2.84% 5.87% 7.46%
without sales load 7.69% 6.85% 8.12%
Lehman Index 6.21% 6.85% 9.08%
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Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
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LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
PERFORMANCE COMPARISON CHART
================================================================================
The following chart compares the performance of Lebenthal New Jersey Municipal
Bond Fund (with and without the 4.5% sales load), for the one year and since
inception periods, against the Lehman Brothers Municipal Bond Index (Lehman
Index) for the same time periods. It is important to keep in mind that the
Lehman Index excludes the effects of any fees or sales charges, and does not
reflect state-specific bond market performance.
Lebenthal New Jersey Municipal Bond Fund
Performance Comparison Chart
[The following table was depicted as a line chart in the printed material.]
Lehman Index with sales load without sales load
------------ --------------- ------------------
10000 9550 10000
10102 9576.68 10027.9
10233.3 9643.37 10097.8
10325.4 9764.96 10225.1
11/30/91 10354.3 9750.91 10210.4
10577 10017.3 10489.3
10601.3 9912.54 10379.6
10604.5 9981.87 10452.2
10608.7 10017.6 10489.6
10703.1 10117.2 10593.9
10829.4 10310 10795.8
11011.4 10561.5 11059.1
11341.7 10996 11514.1
11230.5 10750.3 11256.8
11303.5 10777.6 11285.4
11192.8 10557.4 11054.9
11/30/92 11393.1 10890.8 11403.9
11509.3 11025.6 11545.2
11642.8 11156.2 11681.9
12064.3 11654.5 12203.7
11936.4 11525.5 12068.6
12057 11683 12233.5
12124.5 11763.9 12318.2
12327 11955 12518.3
12343 11977.6 12542
12599.7 12283.2 12862
12743.4 12424.6 13010.1
12767.6 12435 13020.9
11/30/93 12655.2 12262 12839.7
12922.4 12534.2 13124.8
13070 12678.4 13275.8
12731.5 12327.2 12908.1
12213 11658.9 12208.3
12316.2 11652.5 12201.6
12423 11800.5 12356.6
12347.1 11709.2 12260.9
12573.4 11987.3 12552.1
12616.9 12028.4 12595.2
12431.7 11751.2 12304.9
12210.9 11403.5 11940.9
11/30/94 11990.1 11073.5 11595.3
12253.9 11441.3 11980.4
12604.4 11957.4 12520.9
12971.2 12375.7 12958.9
13120.4 12477.6 13065.5
13136.1 12525.5 13115.7
13555.1 12967.8 13578.8
13437.2 12915.4 13524
13564.9 12906.5 13514.6
13737.1 13086.1 13702.7
13823.7 13165.7 13786
14024.1 13394.4 14025.5
11/30/95 14256.9 13728.9 14375.8
14393.9 13872 14525.6
14503.3 13961.9 14619.8
14404.7 13907.5 14562.8
14220.3 13664 14312.8
14180.5 13588.8 14234.1
14174.8 13609.7 14256
14329.3 13829.7 14486.5
14459.7 13980.9 14644.8
14456.8 14001.4 14666.3
14659.2 14241.9 14918.2
14824.9 14374.8 15057.5
11/30/96 15096.2 14547.6 15238.5
15032.8 14498.3 15186.7
15061.3 14471.6 15158.8
15199.9 14610.8 15304.6
14997.8 14449.6 15135.8
15123.7 14592.4 15285.3
15350.6 14784 15486.1
15514.8 14924.5 15633.2
15944.6 15473.7 16208.5
15794.7 15369.6 16099.4
15982.7 15524.4 16261.5
16085 15649.1 16392.3
11/30/97 16179.9 15748.5 16496.3
16416.1 15981.6 16740.5
16585.2 16202 16971.4
16590.2 16206.7 16976.3
16605.1 16237.5 17008.6
16530.4 16169.7 16937.5
16791.5 16434 17214.4
16857 16540.6 17326
16899.2 16589.8 17377.6
17161.1 16856.8 17657.3
17375.6 17074 17831.4
17320 16998.8 17799.8
11/30/98 17408.3 17077.2 17881.9
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Average Annual Total Return Since
One Commencement of Operations
Year December 1, 1993
Lebenthal New Jersey Municipal
Bond Fund:
with sales load 3.59% 4.38%
without sales load 8.47% 5.45%
Lehman Index 6.21% 6.85%
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Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
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LEBENTHAL TAXABLE MUNICIPAL BOND FUND
PERFORMANCE COMPARISON CHART
================================================================================
The following chart compares the performance of Lebenthal Taxable Municipal Bond
Fund (with and without the 4.5% sales load), for the one year and since
inception periods, against the Lehman Brothers Long Corporate Bond Index (Lehman
Index) for the same time periods. It is important to keep in mind that the
Lehman Index excludes the effects of any fees or sales charges.
Lebenthal Taxable Municipal Bond Fund
Performance Comparison Chart
[The following table was depicted as a line chart in the printed material.]
Lehman Index with sales load without sales load
------------ --------------- ------------------
12/1/93 10000 9550 10000
10054 9710.5 10171.6
10297.1 9743.78 10206.5
9986.31 9745.02 10207.8
9583.36 9493.45 9944.26
9469.67 9385.34 9831.01
9372.93 9304.58 9746.42
9316.24 9242.46 9681.35
9636.97 9317.95 9760.42
9603.14 9240.5 9679.29
9337.73 9224.9 9662.96
9303.87 9197.88 9634.66
11/30/94 9340.26 8989.53 9416.4
9471.98 9209.91 9647.25
9705.64 9294.19 9735.53
10019.6 9582.28 10037.3
10128.5 9658.9 10117.6
10324.4 9809.53 10275.4
10966.9 10115.7 10596.1
11082.8 10250.9 10737.7
10974.5 10284.8 10773.1
11221 10409.2 10903.5
11402.8 10662.8 11169.1
11575.5 10897.1 11414.6
11/30/95 11844.8 11111.6 11639.3
12116.8 11284.4 11820.2
12314.1 11392.2 11933.1
11860 11088 11614.5
11732.1 11011.9 11534.8
11582.6 10853.2 11368.6
11559.7 10833.9 11348.4
11733.2 10919 11437.5
11743.8 10945.9 11465.7
11651.4 10944.1 11463.8
11979.2 11166.1 11696.4
12421 11391.8 11932.8
11/30/96 12783 11685.2 12240.1
12517.2 11561.8 12110.9
12476.9 11550.9 12099.4
12559 11601.8 12152.7
12262.5 11433 11975.9
12487.4 11610.3 12161.7
12655.6 11726.9 12283.8
12904.1 11990.8 12560.2
13600.9 12526.4 13121.2
13264.7 12298.6 12882.6
13603.1 12560.1 13156.5
13854.8 12863.8 13474.6
11/30/97 14012 12962.9 13578.5
14230.9 13158.7 13783.6
14367.4 13495.5 14136.3
14353.8 13438.8 14076.9
14411.8 13477.8 14117.8
14516.5 13532.5 14175.2
14766.8 13717.6 14369
14921.6 13974.3 14637.9
14823.1 13975.1 14638.7
14835.8 14365.7 15047.8
15374.8 14913 15563.7
15061.2 14691.1 15383.3
11/30/98 15642.5 14735.5 15429.9
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Average Annual Total Return Since
One Commencement of Operations
Year December 1, 1993
Lebenthal Taxable Municipal
Bond Fund:
with sales load 6.82% 8.06%
without sales load 11.85% 9.06%
Lehman Index 10.67% 8.90%
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Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
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LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Ratings
(Unaudited)
------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- --------- ------------- --------- --------
MUNICIPAL BONDS (98.75%)
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<S> <C> <C> <C> <C>
$ 1,500,000 Cattaraugus County, New York IDA Civic Facility (Olean General
Hospital Project) - Series A, 5.25%, due 08/01/23, (LOC - Fleet
National Bank) $ 1,511,610 A+
1,375,000 Dutchess County, New York IDA Civic Facility (Astor Learning
Center), 5.15%, due 11/01/24, (LOC - Bank of New York) 1,369,087 AA-
1,600,000 Long Island Power Authority, New York Electric System - Series A,
5.50%, due 12/01/29 1,654,512 Baa1 A-
760,000 Metropolitan Trans Authority, New York Commuter Facility - Series
C-1, 5.375%, due 07/01/27, (FGIC Insured) 788,872 Aaa AAA
1,285,000 Monroe County, New York IDA Civic Facility (DePaul Community
Facility), 6.50%, due 02/01/24, (SONYMA Insured) 1,429,639 Aa1
500,000 Monroe County, New York IDA Civic Facility (Nazareth College),
5.25%, due 04/01/23, (MBIA Insured) 511,985 AAA
155,000 New York, New York (Prerefunded) - Series C,
7.25%, due 08/15/24 169,329 AAA A-
5,000 New York, New York (Unrefunded Balance) - Series C, General
Obligation, 7.25%, due 08/15/24 5,408 A3 A-
2,325,000 New York, New York (Unrefunded Balance) - Series I, General
Obligation, 6.25%, due 04/15/27 2,558,895 A3 A
500,000 New York, New York, City Municipal Water - Series A,
5.00%, due 06/15/27, (FSA Insured) 496,980 AAA
3,000,000 New York, New York, City Housing Development Corp Multifamily
Housing Revenue - Series B, 5.25%, due 11/01/31 3,026,340 Aa2 AA
1,150,000 New York, New York, City Municipal Water - Series B, 5.75%,
due 06/15/26, (MBIA Insured) 1,242,862 Aaa AAA
1,705,000 New York State Dormitory Authority (Health Facilities) - Series
A, 5.50%, due 05/15/24, (FSA Insured) 1,785,595 Aaa AAA
675,000 New York State Dormitory Authority (Health Facilities) - Series
1, 5.00%, due 01/15/23, (FSA Insured) 670,282 Aaa AAA
500,000 New York State Dormitory Authority (Health Facilities) - Series
1, 4.75%, due 01/15/29, (FSA Insured) 478,370 Aaa AAA
6,930,000 New York State Dormitory Authority (Highlands Living),
6.60%, due 02/01/34, (FHA Insured) 7,702,903 AA
2,330,000 New York State Dormitory Authority (Presbyterian Residential
Community), 6.50%, due 08/01/34, (FHA Insured) 2,553,890 AA
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Ratings
(Unaudited)
------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- --------- ------------- --------- --------
MUNICIPAL BONDS (Continued)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,500,000 New York State Dormitory Authority (Jewish Geriatric - Long
Island), 7.35%, due 08/01/29, (FHA Insured) $ 4,042,640 AAA
5,190,000 New York State Dormitory Authority (Niagara Frontier Home),
6.40%, due 02/01/35, (FHA Insured) 5,711,803 AA
1,000,000 New York State Dormitory Authority (St. Lukes Home Residential
Health), 6.375%, due 08/01/35, (FHA Insured) 1,105,290 AA
3,900,000 New York State Dormitory Authority (Nottingham Retirement
Community), 6.125%, due 07/01/25, (SONYMA Insured) 4,280,562 Aa1
4,755,000 New York State Dormitory Authority (Geneva Nursing Home),
6.20%, due 08/01/35, (FHA Insured) 5,200,020 AA
3,300,000 New York State Dormitory Authority (Ellis Hospital),
5.60%, due 08/01/25, (MBIA/FHA Insured) 3,449,457 Aaa AAA
1,000,000 New York State Dormitory Authority (Mental Health Services) -
Series B, 5.125%, due 08/15/21, (MBIA Insured) 1,002,470 Aaa AAA
5,750,000 New York State Dormitory Authority (Nursing Home - St. Johns
Health), 6.25%, due 02/01/36, (FHA Insured) 6,324,713 AA
2,730,000 New York State Dormitory Authority (Jewish Home of Central NY),
6.25%, due 07/01/25, (LOC Onbank & Trust Co.) 3,039,364 Aaa
500,000 New York State Dormitory Authority (Dept. of Education),
5.75%, due 07/01/21 532,175 Aaa AAA
2,400,000 New York State Dormitory Authority (Nursing Home),
6.125%, due 02/01/36, (FHA Insured) 2,615,784 AAA
3,000,000 New York State Dormitory Authority (Methodist Hospital) - Series
A, 6.05%, due 02/01/34, (AMBAC/FHA Insured) 3,319,530 Aaa AAA
750,000 New York State Dormitory Authority (Grace Manor Health Care
Facility), 6.15%, due 07/01/18, (SONYMA Insured) 835,860 Aa1
4,000,000 New York State Dormitory Authority (Nursing Home - Menorah
Campus), 6.10%, due 02/01/37, (FHA Insured) 4,367,840 AAA
700,000 New York State Dormitory Authority (Millard Fillmore Hospital),
5.375%, due 02/01/32, (AMBAC/FHA Insured) 719,698 Aaa AAA
1,000,000 New York State Dormitory Authority (Nursing Home - Rosalind &
Joseph), 5.70%, due 02/01/37, (AMBAC/FHA Insured) 1,059,290 Aaa AAA
750,000 New York State Dormitory Authority (Chapel Oaks Inc.),
5.45%, due 07/01/26, (LOC - Allied Irish Bank) 768,098 Aa3
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Ratings
(Unaudited)
------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- --------- ------------- --------- --------
MUNICIPAL BONDS (Continued)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,000,000 New York State Dormitory Authority (Hospital United Health
Services), 5.375%, due 08/01/27, (AMBAC/FHA Insured) $ 2,065,180 AAA
1,200,000 New York State Dormitory Authority (State University Educational
Facilities), 5.125%, due 05/15/27 1,197,300 A3 A-
1,500,000 New York State Dormitory Authority (Hunts Point Multi - Service
Center), 5.625%, due 07/01/22, (SONYMA Insured) 1,588,155 Aa1
3,000,000 New York State Dormitory Authority (Mental Health Services) -
Series D, 5.125%, due 08/15/27, (FSA Insured) 3,008,340 A3 AAA
500,000 New York State Dormitory Authority (Saint Barnabas Hospital),
5.45%, due 08/01/35, (AMBAC/FHA Insured) 515,500 Aaa AAA
1,000,000 New York State Dormitory Authority (FHA-Nursing Home - Center
for Nursing), 5.55%, due 08/01/37, (FHA Insured) 1,043,610 AA
1,000,000 New York State Dormitory Authority (North Shore University
Hospital), 5.25%, due 11/01/19, (MBIA Insured) 1,024,910 Aaa AAA
3,000,000 New York State Dormitory Authority (Mental Health Services) -
Series B, 5.00%, due 02/15/28, (FSA Insured) 2,981,520 Aaa AAA
1,000,000 New York State Dormitory Authority (UTD Hospital Medical Center),
5.20%, due 08/01/18, (MBIA/FHA Insured) 1,017,630 Aaa AAA
7,250,000 New York State Dormitory Authority (Hospital Special Surgery),
5.00%, due 02/01/28, (MBIA/FHA Insured) 7,150,893 Aaa AAA
2,385,000 New York State Dormitory Authority (St. John's University),
4.75%, due 07/01/28, (MBIA Insured) 2,286,213 Aaa AAA
1,000,000 New York State Energy Research & Development Authority -
Electric Facilities (Long Island Lighting), 7.15%, due 02/01/22 1,090,020 Baa3 A-
1,000,000 New York State Energy Research & Development Authority - Gas
Facilities (Brooklyn Union Gas), 6.75%, due 02/01/24, (MBIA
Insured) 1,096,360 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) 543,905 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) 3,798,242 A2
1,500,000 New York State Housing Finance Agency (Insured-Multifamily
Mortgage) - Series C, 6.50%, due 08/15/24, (FHA Insured) 1,598,040 Aa2 AAA
1,990,000 New York State Housing Finance Agency (Housing Project Mortgage)
- Series A, 6.125%, due 11/01/20, (FSA Insured) 2,161,319 Aaa AAA
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Ratings
(Unaudited)
------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- --------- ------------- --------- --------
MUNICIPAL BONDS (Continued)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,000,000 New York State Housing Finance Agency (Multifamily Housing) -
Series D, 6.10%, due 11/15/36, (FHA Insured) $ 2,162,720 AAA
490,000 New York State Housing Finance Agency (Nursing Home & Health
Care), 5.15%, due 11/01/16 499,080 Aaa AAA
2,000,000 New York State Housing Finance Agency (Hospital & Health Care) -
Series A, 5.15%, due 11/01/16, (MBIA Insured) 2,037,060 Aaa 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) 1,914,098 AAA
60,000 New York State Medical Care Facilities Finance Agency,
7.30%, due 02/15/21 65,863 A3
6,750,000 New York State Medical Care Facilities Finance Agency - Series B,
6.60%, due 08/15/34, (FHA Insured) 7,510,118 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) 2,768,401 Aa2 AA
6,950,000 New York State Medical Care Facilities Finance Agency (Mortgage
Project) - Series C, 6.375%, due 08/15/29, (FHA Insured) 7,622,830 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) 5,516,400 Aa2 AA
1,000,000 New York State Urban Development Corp (Senior Lien Corp.),
5.50%, due 07/01/26, (HUD Insured) 1,046,190 Aaa AAA
1,600,000 Oswego County, New York Development Agency (Seneca Hill Project)
- Series A, 5.65%, due 08/01/37, (FHA Insured) 1,686,416 AA
600,000 Oswego County, New York Development Agency (Saint Luke
Residential Health) - Series A, 5.40%, due 02/01/38, (FHA
Insured) 615,138 AAA
1,000,000 Otsego County, New York Development Agency (Bassett Healthcare
Project B), 5.375%, due 11/01/20, (MBIA Insured) 1,036,970 Aaa AAA
405,000 St. Lawrence County, New York Development Facility (St. Lawrence
University) - Series A, 5.00%, due 07/01/28, (MBIA Insured) 402,505 Aaa AAA
3,000,000 Syracuse, New York Housing Authority (Loretto Residential Health)
- Series A, 5.80%, due 08/01/37, (FHA Insured) 3,208,560 AAA
-------------
Total Municipal Bonds (Cost $137,897,975) 148,590,639
-------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Value
Shares (Note 1)
- ----------- -------------
CLOSED-END FUNDS (.06%)
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
5,338 Muniyield New York Insured Fund $ 89,078
-------------
Total Closed-End Funds (Cost $82,899) 89,078
-------------
Total Investments (98.81%)(Cost $137,980,874)+ 148,679,717
Cash and Other Assets, Net of Liabilities (1.19%) 1,794,019
-------------
Net Assets (100.00%) $ 150,473,736
=============
</TABLE>
+ Aggregate cost for federal income tax purposes is identical.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $10,705,862 and $7,019, respectively,
resulting in net unrealized appreciation of $10,698,843.
KEY:
AMBAC = Ambac Indemnity Corporation
FGIC = Financial Guaranty Insurance Corporation
FHA = Federal Housing Administration
FSA = Financial Security Assurance, Inc.
HUD = Department of Housing and Urban Development
LOC = Letter of Credit
MBIA = Municipal Bond Insurance Association
SONYMA = State of New York Mortgage Agency
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Ratings
(Unaudited)
------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- --------- ------------- --------- --------
MUNICIPAL BONDS (96.83%)
- ---------------------------------------------------------------------------------------------------------------------------
<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) $ 144,637 Aaa AAA
110,000 Essex County, New Jersey Import Authority, County Correctional
Facility - Series A, 5.70%, due 01/01/27, (FGIC Insured) 118,018 Aaa AAA
70,000 Essex County, New Jersey Import Authority, Orange School District
- Series A, 6.95%, due 07/01/14, (MBIA Insured) 82,982 Aaa AAA
200,000 Guam Housing Corp., Single Family - Series A,
5.75%, due 09/01/31, (FHLMC Insured) 217,532 AAA
100,000 Irvington, New Jersey Housing & Mortgage Finance Authority,
6.50%, due 02/01/24, (FHA Insured) 107,441 AAA
300,000 Middlesex County, New Jersey Import Authority,
5.90%, due 09/15/21 327,414 A1 A+
100,000 New Jersey Economic Development Authority, Economic Development
Revenue, American Airlines Inc. Project, 7.10%, due 11/01/31 108,446 Baa1 BBB-
250,000 New Jersey Economic Development Authority, Economic Development
Revenue, Bancroft Incorporated Obligation Group,
6.05%, due 12/01/25, (Connie Lee Insured) 276,718 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) 167,011 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) 165,355 A
200,000 New Jersey Economic Development Authority, Economic Development
Revenue, Heath Village 1996 Project, 6.00%, due 05/01/16,
(LOC - First Union National Bank) 217,274 A+
100,000 New Jersey Economic Development Authority, Pollution Control
Revenue, PSE&G Co. Project, 6.40%, due 05/01/32, (MBIA Insured) 110,666 Aaa AAA
100,000 New Jersey Economic Development Authority, N.J. American Water
Co. Project A, 6.875%, due 11/01/34, (FGIC Insured) 114,035 Aaa AAA
100,000 New Jersey Economic Development Authority, Economic Growth -
Series D, 6.55%, due 08/01/14, (LOC - Natwest Bank) 109,645 A+
100,000 New Jersey Economic Development Authority, Sewage Facilities,
Anheuser-Busch Project, 5.85%, due 12/01/30 108,489 A1 A+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Ratings
(Unaudited)
------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- --------- ------------- --------- --------
MUNICIPAL BONDS (Continued)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 400,000 New Jersey Economic Development Authority, INSD-EDL
Testing Service - Series A, 4.75%, due 05/15/25 $ 389,988 Aaa AAA
85,000 New Jersey Health Care Facilities Financing Authority, Irvington
General Hospital Issue, 6.40%, due 08/01/25, (FHA Insured) 94,634 AAA
125,000 New Jersey Health Care Facilities Financing Authority, General
Hospital Center at Passaic, 6.75%, due 07/01/19, (FSA Insured) 152,935 Aaa AAA
100,000 New Jersey Health Care Facilities Financing Authority, Monmouth
Medical Center Issue - Series C, 6.25%, due 07/01/24, (FSA
Insured) 111,165 Aaa AAA
150,000 New Jersey Health Care Facilities Financing Authority, St.
Joseph's Hospital & Medical Center, 6.00%, due 07/01/26, (Connie
Lee Insured) 165,133 AAA
100,000 New Jersey Health Care Facilities Financing Authority, AHS
Hospital - Series A, 5.00%, due 07/01/27, (AMBAC Insured) 100,404 Aaa AAA
25,000 New Jersey Health Care Facilities Financing Authority, Capital
Health System Obligation Group, 5.25%, due 07/01/27 24,889 Baa1 A-
100,000 New Jersey Health Care Facilities Financing Authority, Community
Medical Center/Kimball, 5.50%, due 07/01/08 109,178 Aaa AAA
235,000 New Jersey Health Care Facilities Financing Authority,
Cathedral Health Services, 5.25%, due 08/01/21, (MBIA/FHA
Insured) 240,168 Aaa AAA
250,000 New Jersey Health Care Facilities Financing Authority, Medical
Center at Princeton Obligation Group, 5.00%, due 07/01/28,
(AMBAC Insured) 250,642 Aaa AAA
250,000 New Jersey Health Care Facilities Financing Authority, Hackensack
University Medical Center - Series A, 5.00%, due 01/01/28, (MBIA
Insured) 250,973 Aaa AAA
350,000 New Jersey Health Care Facilities Financing Authority,
Centrastate Medical Center Obligation Group, 4.50%, due 07/01/28,
(AMBAC Insured) 327,201 Aaa AAA
300,000 New Jersey Health Care Facilities Financing Authority, Virtua
Health Issue, 4.75%, due 07/01/18, (FSA Insured) 293,253 Aaa AAA
290,000 New Jersey State Education Facilities Authority, Monmouth
University - Series C, 5.40%, due 07/01/06 307,180 Baa2 BBB
100,000 New Jersey State Education Facilities Authority, New Jersey
Institute Tech Issue - Series A, 6.00%, due 07/01/24, (MBIA
Insured) 110,250 Aaa AAA
150,000 New Jersey State Education Facilities Authority, Trenton State
College - Series E, 6.00%, due 07/01/19, (AMBAC Insured) 162,526 Aaa AAA
375,000 New Jersey State Educational Facilities Authority, Kean
University - Series A, 5.00%, due 07/01/27, (AMBAC Insured) 376,684 Aaa AAA
240,000 New Jersey State Higher Education Assistance Authority, Student
Loan Program - Series A, 5.80%, due 06/01/16, (MBIA Insured) 256,714 Aaa AAA
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings
(Unaudited)
------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- --------- ------------- --------- --------
MUNICIPAL BONDS (Continued)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 75,000 New Jersey State Higher Education Assistance Authority, Student
Loan - Series A, 5.30%, due 06/01/17, (AMBAC Insured) $ 75,772 AAA
125,000 New Jersey State Housing & Mortgage Finance Agency, MHRB
Refunding - Presidential Plaza, 7.00%, due 05/01/30, (FHA
Insured) 136,659 AAA
300,000 New Jersey State Housing & Mortgage Finance Agency, MHRB -
Series A, 6.05%, due 11/01/20, (AMBAC/FHA Insured) 320,991 Aaa AAA
100,000 New Jersey State Housing & Mortgage Finance Agency, MHRB -
Series A, 6.25%, due 05/01/28, (AMBAC Insured), Subject to AMT 108,014 Aaa AAA
75,000 New Jersey State Housing & Mortgage Finance Agency, MHRB -
Series A, 5.65%, due 05/01/40, (AMBAC Insured), Subject to AMT 77,845 Aaa AAA
125,000 New Jersey State Housing & Mortgage Finance Agency,
Series A, 6.95%, due 11/01/13, (HUD Section 8 Insured) 134,720 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 161,838 Aaa AAA
400,000 New Jersey State Housing & Mortgage Finance Agency, Home Buyers
- Series X , 5.35%, due 04/01/29, (MBIA Insured), Subject to AMT 404,872 Aaa AAA
140,000 Newark, New Jersey Housing Finance Corporation Mortgage,
Refunding - HUD Section 8 - Manor Apartments - Series A, 7.50%,
due 02/15/24, (FHA Insured) 156,327 AAA
800,000 Port Authority of New York & New Jersey Special Obligation, JFK
International Air Terminal - Series 6, 5.75%, due 12/01/22,
(MBIA Insured) 854,496 Aaa AAA
150,000 Port Authority of New York & New Jersey, 114th Series,
5.00%, due 08/01/24 149,990 A1 AA-
70,000 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 74,085 Aaa AAA
-------------
Total Municipal Bonds (Cost $8,180,695) 8,755,189
-------------
<CAPTION>
Shares
- -----------
CLOSED-END FUNDS (.85%)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
4,589 Muniyield New Jersey Fund 76,866
-------------
Total Closed-End Funds (Cost $73,599) 76,866
-------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Face Value
Amount (Note 1)
- ----------- -------------
COMMERCIAL PAPER (3.23%)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 292,000 General Motors Acceptance Corporation, 4.75%, due 12/03/98 $ 292,000
-------------
Total Commercial Paper (Cost $292,000) 292,000
-------------
Total Investments (100.91%)(Cost $8,546,294)+ 9,124,055
Liabilities in Excess of Cash and Other Assets (-0.91%) (81,912)
-------------
Net Assets (100.00%) $ 9,042,143
=============
</TABLE>
+ Aggregate cost for federal income tax purposes is $8,546,546.
Aggregate unrealized appreciation and depreciation, based on cost for federal
income tax purposes, are $578,537 and $1,028, respectively, resulting in net
unrealized appreciation of $577,509.
KEY:
AMBAC = Ambac Indemnity Corporation
FSA = Financial Security Assurance, Inc.
AMT = Alternative Minimum Tax
GNMA = Government National Mortgage Associaton
FGIC = Financial Guaranty Insurance Corporation
HUD = Department of Housing and Urban Development
FHA = Federal Housing Administration
LOC = Letter of Credit
FHLMA = Federal Home Loan Mortgage Association
MBIA = Municipal Bond Insurance Association
FHLMC = Federal Home Loan Mortgage Corporation
MHRB = Multi-family Housing Revenue Bond
FNMA = Federal National Mortgage Association
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Ratings
(Unaudited)
------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- --------- ------------- --------- --------
MUNICIPAL BONDS (92.32%)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 150,000 All Saints Health System, 9.00%, due 08/15/24, (MBIA Insured) $ 171,559 Aaa AAA
400,000 Atlanta & Fulton County, Georgia, Downtown Arena Project,
7.00%, due 12/01/28, (FSA Insured) 413,960 Aaa AAA
385,000 Baltimore, Maryland - Series B, General Obligation,
7.90%, due 10/15/16, (FGIC Insured) 423,377 Aaa AAA
1,100,000 Bastrop, Texas Economic Development Corporation, Sales Tax,
8.00%, due 08/15/16 1,214,763 BBB+
100,000 Buffalo, New York - Series F, 9.05%, due 02/01/15, (AMBAC
Insured) 105,773 Aaa AAA
240,000 California Housing Finance Agency, Multi-family Housing - Series
C, 8.10%, due 02/01/37, (AMBAC Insured) 256,944 Aaa AAA
700,000 Cedartown, Georgia Development Authority, Industrial Park Project
A, 7.00%, due 02/01/22, (AMBAC Insured) 752,780 Aaa AAA
2,000,000 Compton, California Community Redevelopment Agency - Series C,
Tax Allocation, 0.00%*, due 08/01/22, (FSA Insured) 420,400 Aaa AAA
150,000 Connecticut State Health and Educational Facilities Authority,
Maefair Health Care, 9.20%, due 11/01/24 197,400 A1 AA-
150,000 Connecticut State Health and Educational Facilities Authority,
Shady Knoll Center, 8.90%, due 11/01/24 190,020 A1 AA-
255,000 Connecticut State Housing Finance Authority - Series F,
9.25%, due 05/15/27 295,876 Aa2 AA
200,000 Connecticut State Housing Finance Authority - Series G,
7.625%, due 05/15/21 226,600 Aa2 AA
100,000 Connecticut State Development Authority - Sub Series B1,
8.50%, due 08/15/14 111,698 A+
125,000 Conyers, Georgia Water & Sewer - Series B,
8.75%, due 07/01/15, (AMBAC Insured) 142,975 Aaa AAA
250,000 Cuyahoga County, Ohio Economic Development, Gateway Arena Project
- Series A, 8.625%, due 06/01/22 298,725
100,000 Dallas-Fort Worth, Texas International, Airport Facilities
Improvement, 7.07%, due 11/01/24, (MBIA Insured) 108,540 Aaa AAA
500,000 De Kalb County, Georgia Development Authority Revenue,
VA Regional Office Project, 6.875%, due 03/01/20, (MBIA Insured) 505,750 Aaa AAA
500,000 Detroit, Michigan Downtown Development Authority, Development
Area No. 1 Projects - Series B, 6.68%, due 07/01/28, (MBIA
Insured) 509,600 Aaa AAA
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings
(Unaudited)
------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- --------- ------------- --------- --------
MUNICIPAL BONDS (Continued)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 200,000 Florida Housing Finance Agency, Taxable Housing Mariner Club -
K-2, 8.25%, due 09/01/15, (AMBAC Insured) $ 218,800 Aaa AAA
1,230,000 Harrisburg, Pennsylvania - Series A, General Obligation,
0.00%*, due 04/01/18, (AMBAC Insured) 360,390 Aaa AAA
1,165,000 Harrisburg, Pennsylvania - Series A, General Obligation,
0.00%*, due 04/01/19, (AMBAC Insured) 320,375 Aaa AAA
350,000 Harrison County, Mississippi - Series A, General Obligation,
7.75%, due 04/01/16, (MBIA Insured) 367,570 Aaa
150,000 Idaho Housing Agency, 8.50%, due 07/01/09, (HUD Section 8
Insured) 161,820 A
150,000 Illinois Housing Development Authority, Affordable Housing
Project, 8.64%, due 12/01/21, (AMBAC Insured) 162,990 Aaa AAA
2,180,000 Kern County, California Pension Obligation, 0.00%*, due 08/15/18,
(MBIA Insured) 618,030 Aaa AAA
325,000 Maryland State Community Development Administration - Series F,
9.10%, due 05/15/10, (MHF Insured) 360,750 Aa3
150,000 Memorial Health System, Illinois, 8.375%, due 10/01/20, (MBIA
Insured) 176,445 Aaa AAA
200,000 Michigan State Housing Development Authority - Series A,
8.30%, due 11/01/15, (AMBAC Insured) 228,000 Aaa AAA
50,000 Minnesota State Housing Finance Agency, Rental Housing - Series
B, 8.00%, due 02/01/18 53,250 AA
45,000 Minnesota State Housing Finance Agency, Single Family Mortgage -
Series G, 8.05%, due 01/01/12 47,525 AA
600,000 Mississippi Hospital Equipment and Facilities Authority,
Wellesley Health Systems - Series A, 9.10%, due 04/01/06 709,680 AAA
75,000 New Hampshire State Housing and Finance Authority, Single Family
- Series C, 9.40%, due 07/01/14 77,250 Aa2
240,000 New Jersey State Housing and Mortgage Finance Agency, Rental
Housing - Series E, 8.95%, due 11/01/12 262,560 AA-
700,000 New York State Dormitory Authority, Highland Hospital - Series B,
7.45%, due 08/01/35, (MBIA Insured) 759,990 Aaa AAA
250,000 New York State Environmental Facilities - Series A,
9.625%, due 03/15/21 285,803 Baa1 BBB+
300,000 New York State Housing Finance Agency, Multi-family Housing -
Series B, 8.25%, due 05/15/35, (FHA Insured) 325,890 AAA
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Ratings
(Unaudited)
------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- --------- ------------- --------- --------
MUNICIPAL BONDS (Continued)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 350,000 New York State Housing Finance Agency, Multi-family Housing -
Series C, 8.11%, due 11/15/38, (FHA Insured) $ 400,575 AAA
110,000 New York State Housing Finance Agency, Service Contract
Obligation - Series B, 8.60%, due 03/15/04 124,113 Baa1 BBB+
100,000 Pittsburgh, Pennsylvania Urban Redevelopment Authority,
9.07%, due 09/01/14, (FSA Insured) 122,660 Aaa AAA
300,000 Sacramento County, California - Series A, 7.68%, due 08/15/21,
(MBIA Insured) 364,110 Aaa AAA
120,000 Southeastern Pennsylvania Transit Authority - Series B,
8.75%, due 03/01/20, (FGIC Insured) 140,544 Aaa AAA
300,000 Tampa, Florida Sports Authority, Hillsboro Arena Project,
8.07%, due 10/01/26, (MBIA Insured) 332,763 Aaa AAA
375,000 Texas State Department of Housing & Community Affairs - Series
C-1, 7.76%, due 09/01/17, (MBIA Insured) 411,225 Aaa AAA
300,000 Texas State, Veterans Housing, General Obligation,
7.35%, due 12/01/21 319,020 Aa2 AA
1,050,000 United Nations Development Corporation, New York - Series A,
8.80%, due 07/01/26 1,238,853 AAA
500,000 Virginia State Housing Development Authority, Commonwealth
Mortgage, 7.80%, due 07/01/17 548,150 Aa1 AA+
365,000 Virginia State Housing Development Authority, Multi-family -
Series A, 8.125%, due 11/01/15 394,346 Aa1 AA+
175,000 Wisconsin Housing & Economic Development Authority - Series H,
7.875%, due 03/01/26 181,808 Aa2 AA
-------------
Total Municipal Bonds (Cost $14,651,280) 16,422,025
=============
<CAPTION>
Shares
- ----------
CLOSED-END FUNDS (4.63%)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
94,895 Hyperion Total Return Fund Incorporated 824,400
------------
Total Closed-End Funds (Cost $854,708) 824,400
============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Face Value
Amount (Note 1)
- ------------ ------------
COMMERCIAL PAPER (4.04%)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 500,000 Ford Motor Credit Corporation, 5.15%, due 12/02/98 $ 500,000
218,000 General Motors Acceptance Corporation, 4.75%, due 12/03/98 218,000
-------------
Total Commercial Paper (Cost $718,000) 718,000
-------------
Total Investments (100.99%)(Cost $16,223,988)+ 17,964,425
Liabilities in Excess of Cash and Other Assets (-0.99%) (175,346)
-------------
Net Assets (100.00%) $ 17,789,079
=============
</TABLE>
+ Aggregate cost for federal income tax purposes is $16,232,226.
Aggregate unrealized appreciation and depreciation, based on cost for federal
income tax purposes, are $1,762,507 and $30,308, respectively, resulting in
net unrealized appreciation of $1,732,199.
* Zero Coupon Bond
KEY:
AMBAC = Ambac Indemnity Corporation
HUD = Department of Housing and Urban Development
FGIC = Financial Guaranty Insurance Corporation
MBIA = Municipal Bond Insurance Association
FHA = Federal Housing Administration
MHF = Maryland Housing Fund
FSA = Financial Security Assurance, Inc.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Lebenthal New York Lebenthal New Jersey Lebenthal Taxable
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
-------------------- -------------------- --------------------
<S> <C> <C> <C>
ASSETS
Investment in securities at value (cost $137,980,874,
$8,546,294 and $16,223,988)......................... $ 148,679,717 $ 9,124,055 $ 17,964,425
Cash ................................................ 70,189 1,987 1,082
Receivables:
Securities sold................................... 232,280 -- --
Capital shares sold............................... 441,211 80,085 116,745
Interest.......................................... 2,519,417 142,817 271,505
Due from Manager.................................. 17,545 29,214 31,302
------------- ------------- -------------
Total assets.................................... 151,960,359 9,378,158 18,385,059
------------- ------------- -------------
LIABILITIES
Payables:
Securities purchased.............................. -- 291,647 500,400
Capital shares redeemed........................... 939,667 753 10,522
Dividends......................................... 389,569 23,192 61,608
Distribution fee payable (Note 3)................. 41,061 -- --
Management fee payable (Note 2)................... 29,708 1,825 3,542
Administration fee payable........................ 12,367 550 1,184
Accrued expenses and other liabilities................. 74,251 18,048 18,724
------------- ------------- -------------
Total liabilities............................... 1,486,623 336,015 595,980
------------- ------------- -------------
NET ASSETS............................................. $ 150,473,736 $ 9,042,143 $ 17,789,079
============= ============= =============
NET ASSETS consist of:
Par value.............................................. $ 17,633 $ 1,257 $ 2,300
Paid in capital........................................ 137,953,298 8,691,249 16,365,764
Undistributed investment income - net.................. 8,544 -- --
Accumulated net realized gain (loss) on investments.... 1,795,418 (228,124) (319,422)
Unrealized appreciation on investments - net........... 10,698,843 577,761 1,740,437
------------- ------------- -------------
Total net assets................................ $ 150,473,736 $ 9,042,143 $ 17,789,079
============= ============= =============
Class A
Net Assets............................................. $ 147,672,902 $ 9,042,143 $ 17,789,079
Shares outstanding (Note 4)............................ 17,305,012 1,256,518 2,300,399
Net asset value, and redemption price per share........ $ 8.53 $ 7.20 $ 7.73
Maximum offering price per share*...................... $ 8.93 $ 7.54 $ 8.09
Class B
Net Assets............................................. $ 2,800,834 $ -- $ --
Shares outstanding (Note 4)............................ 328,063 -- --
Net asset value, and redemption price per share**...... $ 8.54 $ -- $ --
</TABLE>
* 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.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
STATEMENTS OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1998
================================================================================
<TABLE>
<CAPTION>
Lebenthal New York Lebenthal New Jersey Lebenthal Taxable
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
-------------------- -------------------- --------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest ........................................... $ 8,124,260 $ 397,269 $ 1,128,345
Dividends........................................... 56,617 29,455 21,602
------------- ------------- -------------
Total income...................................... 8,180,877 426,724 1,149,947
------------- ------------- -------------
Expenses:
Management fee (Note 2)............................. 327,319 19,473 40,186
Distribution fee:
Class A (Note 3).................................. 357,160 19,473 40,186
Class B (Note 3).................................. 10,739 -- --
Shareholder servicing fees:
Class A........................................... 88,984 25,876 29,348
Class B........................................... 31,018 -- --
Administration fee.................................. 139,816 7,511 15,642
Printing............................................ 13,829 1,250 3,057
Custodian fee....................................... 19,848 2,974 4,352
Interest............................................ 3,413 63 1,588
Legal and compliance fees........................... 56,541 1,682 625
Audit and accounting fees........................... 71,784 38,918 41,785
Directors' fees..................................... 5,072 168 561
Registration fees:
Class A........................................... 6,576 224 541
Class B........................................... 2,755 -- --
Amortization of organization expenses (Note 1)...... -- 7,745 6,249
Other............................................... 6,127 499 2,185
------------- ------------- -------------
Total expenses.................................... 1,140,981 125,856 186,305
Less: Reimbursement of expenses by Manager (Note 2). (21,825) (58,043) (31,797)
Fees waived by Distributor (Note 3)........... (10,739) (19,473) (40,186)
Fees paid indirectly (Note 1)................. (3,252) (1,254) (1,097)
------------- ------------- -------------
Net expenses...................................... 1,105,165 47,086 113,225
------------- ------------- -------------
Net investment income.................................. 7,075,712 379,638 1,036,722
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments....................... 2,462,544 36,505 42,480
Change in unrealized appreciation of investments....... 1,099,338 199,349 701,114
------------- ------------- -------------
Net realized and unrealized gain on investments........ 3,561,882 235,854 743,594
------------- ------------- -------------
Increase in net assets from operations................. $ 10,637,594 $ 615,492 $ 1,780,316
============= ============= =============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED NOVEMBER 30, 1998 AND 1997
================================================================================
<TABLE>
<CAPTION>
Lebenthal New York Municipal Lebenthal New Jersey Municipal
Bond Fund Bond Fund
------------------------------------------ ------------------------------------------
1998 1997 1998 1997
-------------------- -------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income....... $ 7,075,712 $ 6,460,590 $ 379,638 $ 279,289
Net realized gain on
investments............... 2,462,544 1,262,317 36,505 28,867
Change in unrealized
appreciation.............. 1,099,338 2,368,635 199,349 153,909
-------------- ------------- ------------- -------------
Increase in net assets from
operations.................. 10,637,594 10,091,542 615,492 462,065
Dividends from net investment
income:
Class A shares............ (7,033,260)* (6,461,498) (379,638)* (279,289)
Class B shares............ (42,452)* -- -- --
Capital share transactions
(Note 4).................... 12,767,794 7,902,703 2,684,705 756,659
-------------- ------------- ------------- -------------
Total increase............ 16,329,676 11,532,747 2,920,559 939,435
Net assets:
Beginning of period......... 134,144,060 122,611,313 6,121,584 5,182,149
-------------- ------------- ------------- -------------
End of period (1)........... $ 150,473,736 $ 134,144,060 $ 9,042,143 $ 6,121,584
============== ============= ============= =============
(1) Includes Undistributed Net
Investment Income......... $ 8,544 $ 8,544 $ -- $ --
============== ============= ============= =============
</TABLE>
(Unaudited Information)
* 99.15% and 97.63% 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.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEARS ENDED NOVEMBER 30, 1998 AND 1997
================================================================================
Lebenthal Taxable Municipal
Bond Fund
---------------------------------
1998 1997
---------------- -------------
IINCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income.................. $ 1,036,722 $ 1,010,769
Net realized gain on
investments.......................... 42,480 97,125
Change in unrealized
appreciation......................... 701,114 404,164
------------- -------------
Increase in net assets from
operations............................. 1,780,316 1,512,058
Dividends from net investment
income................................. (1,036,722) (1,010,769)
Capital share transactions
(Note 4)............................... 2,051,611 (114,600)
------------- -------------
Total increase....................... 2,795,205 386,689
Net assets:
Beginning of period.................... 14,993,874 14,607,185
------------- -------------
End of period (1)...................... $ 17,789,079 $ 14,993,874
============= =============
(1) Includes Undistributed Net
Investment Income..................... $ -- $ --
============= =============
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
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
------------------------------------------------------------------------
Year Ended November 30,
------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------- ------------- ------------- ------------- -------------
<S> <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
-------- --------- --------- --------- ---------
Income from investment operations:
Net investment income......................... 0.42 0.42 0.41 0.43 0.41
Net realized and unrealized
gain (loss) on investments................. 0.21 0.23 0.10 1.15 (1.15)
-------- --------- --------- --------- ---------
Total from investment operations.............. 0.63 0.65 0.51 1.58 (0.74)
-------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income.......... (0.42) (0.42) (0.41) (0.43) (0.41)
Distributions from net realized
gain on investments........................ -- -- -- -- (0.04)
-------- --------- --------- --------- ---------
Total distributions........................... (0.42) (0.42) (0.41) (0.43) (0.45)
-------- --------- --------- --------- ---------
Net asset value, end of period................ $ 8.53 $ 8.32 $ 8.09 $ 7.99 $ 6.84
======== ========= ========= ========= =========
Total Return
(without deduction of sales load).......... 7.69% 8.27% 6.63%* 23.56% (9.62%)
Ratios/Supplemental Data
Net assets, end of period (000)............... $147,673 $ 134,144 $ 122,611 $ 105,579 $ 75,326
Ratios to average net assets:
Expenses................................... 0.76%** 0.89%** 1.09% 0.99% 0.64%
Net investment income...................... 4.92% 5.16% 5.17% 5.63% 5.44%
Portfolio turnover............................ 66.04% 60.80% 45.92% 148.88% 192.91%
</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% for the
period ended November 30, 1994.
* 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% of average net assets.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
Selected data for a share of capital stock outstanding throughout the period:
================================================================================
Lebenthal New York
Municipal Bond Fund-Class B
---------------------------
Period Ended November 30,
---------------------------
1998*
-------------
Per Share Operating Performance:
Net asset value, beginning of period.......... $ 8.34
---------
Income from investment operations:
Net investment income......................... 0.33
Net realized and unrealized
gain on investments........................ 0.20
---------
Total from investment operations.............. 0.53
---------
Less distributions:
Dividends from net investment income.......... (0.33)
---------
Net asset value, end of period................ $ 8.54
=========
Total Return (1)
(without deduction of sales load).......... 6.48%
Ratios/Supplemental Data
Net assets, end of period (000)............... $ 2,801
Ratios to average net assets:
Expenses ++ (2)............................ 1.55%**
Net investment income (2).................. 3.95%
Portfolio turnover............................ 66.04%
* Class commenced operations on December 3, 1997.
++ 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 4.58%.
** Includes fees paid indirectly of less than .01% of average net assets.
(1) Not annualized for periods less than one year.
(2) Annualized for periods less than one year.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
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
------------------------------------------------------------------------
Year Ended November 30,
------------------------------------------------------------------------
1998 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......................... 0.35 0.35 0.36 0.36 0.32
Net realized and unrealized
gain (loss) on investments................. 0.23 0.23 0.04 0.75 (1.21)
-------- --------- --------- --------- ---------
Total from investment operations.............. 0.58 0.58 0.40 1.11 (0.89)
-------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income.......... (0.35) (0.35) (0.36) (0.36) (0.32)
-------- --------- --------- --------- ---------
Net asset value, end of period................ $ 7.20 $ 6.97 $ 6.74 $ 6.70 $ 5.95
======== ========= ========= ========= =========
Total Return
(without deduction of sales load).......... 8.47% 8.84% 6.18% 19.10% (12.70%)
Ratios/Supplemental Data
Net assets, end of period (000)............... $ 9,042 $ 6,122 $ 5,182 $ 3,358 $ 2,145
Ratios to average net assets:
Expenses ................................ 0.60%** 0.70%** 0.63%** 0.60% 0.60%
Net investment income...................... 4.87% 5.12% 5.37% 5.64% 4.97%
Portfolio turnover............................ 31.81% 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 1.60%, 2.57%,
3.20%, 4.13%, and 4.83% for the years ended November 30, 1998, 1997, 1996,
1995 and 1994, respectively.
** Includes fees paid indirectly of 0.02%, 0.02%, and 0.03% of average net
assets for 1998, 1997, and 1996, respectively.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
Selected data for a share of capital stock outstanding throughout each period:
================================================================================
<TABLE>
<CAPTION>
Lebenthal Taxable
Municipal Bond Fund
------------------------------------------------------------------------
Year Ended November 30,
------------------------------------------------------------------------
1998 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......................... 0.49 0.50 0.52 0.53 0.44
Net realized and unrealized
gain (loss) on investments................. 0.36 0.24 (0.09) 0.88 (0.82)
-------- --------- --------- --------- ---------
Total from investment operations.............. 0.85 0.74 0.43 1.41 (0.38)
-------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income.......... (0.49) (0.50) (0.52) (0.53) (0.44)
-------- --------- --------- --------- ---------
Net asset value, end of period................ $ 7.73 $ 7.37 $ 7.13 $ 7.22 $ 6.34
======== ========= ========= ========= =========
Total Return
(without deduction of sales load).......... 11.85% 10.89% 6.35% 23.11% (5.45%)
Ratios/Supplemental Data
Net assets, end of period (000)............... $ 17,789 $ 14,994 $ 14,607 $ 8,686 $ 2,990
Ratios to average net assets:
Expenses ................................ 0.70%** 0.79%** 0.61%** 0.60% 0.60%
Net investment income...................... 6.45% 7.06% 7.34% 7.57% 6.74%
Portfolio turnover............................ 23.75% 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 1.15%, 1.42%,
1.63%, 2.59%, and 3.60% for the years ended November 30, 1998, 1997, 1996,
1995 and 1994, respectively.
** Includes fees paid indirectly of 0.01% of average net assets.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Summary of Accounting Policies
Lebenthal Funds, Inc. (the "Company") is registered under the Investment Company
Act of 1940 as an open-end management investment company consisting of Lebenthal
New York 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
have a higher expense ratio than Class A shares, which have an initial sales
charge, 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 their tax-exempt and taxable income to their
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.
The Funds may periodically make reclassifications among certain of their
capital accounts as a result of the timing and characterization of certain
income and capital gains distributions determined annually in accordance
with federal tax regulations which may differ from generally accepted
accounting principles. For the year ended November 30, 1998, $2,445 of
paid-in capital was reclassified to accumulated net realized gain for the
New York Bond Fund.
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.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
Summary of Accounting Policies (Continued)
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
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 $3,252, $1,254, and $1,097
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 management 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. (the 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 $21,825,
$58,043 and $31,797, respectively.
Lebenthal & Co., Inc. retained commissions of $260,824 from the sales of shares
of the Funds.
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
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
Distribution Plan (Continued)
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 year ended November 30, 1998, the Distributor voluntarily waived fees of
$10,739, $19,473 and $40,186 from the New York Bond Fund - Class B, 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 November 30, 1998, there were 26,666,666,667 shares of $0.001 par value stock
authorized. Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
Lebenthal New York Municipal Bond Fund - Lebenthal New York Municipal Bond Fund -
Class A Class A
Year Ended Year Ended
November 30, 1998 November 30, 1997
------------------------------------------ ------------------------------------------
Shares Amount Shares Amount
-------------------- -------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
Sold .......................... 2,792,372 $ 23,568,425 2,533,634 $ 20,632,289
Issued as reinvestment of dividends 731,001 6,165,292 704,599 5,693,051
Redeemed......................... (2,338,936) (19,743,010) (2,274,159) (18,422,637)
-------------- ------------- ------------- -------------
Net increase..................... 1,184,437 $ 9,990,707 964,074 $ 7,902,703
============== ============= ============= =============
</TABLE>
Lebenthal New York Municipal Bond Fund -
Class B
Period Ended
November 30, 1998*
------------------------------------------
Shares Amount
-------------------- --------------------
Sold ............................ 329,526 $ 2,789,840
Issued as reinvestment of dividends 3,624 30,740
Redeemed........................... (5,087) (43,493)
-------------- -------------
Net increase....................... 328,063 $ 2,777,087
============== =============
<TABLE>
<CAPTION>
Lebenthal New Jersey Municipal Bond Fund Lebenthal New Jersey Municipal Bond Fund
Year Ended Year Ended
November 30, 1998 November 30, 1997
------------------------------------------ ------------------------------------------
Shares Amount Shares Amount
-------------------- -------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
Sold .......................... 494,730 $ 3,512,395 198,467 $ 1,350,032
Issued as reinvestment of dividends 45,998 325,833 34,595 234,078
Redeemed......................... (162,955) (1,153,523) (123,178) (827,451)
-------------- ------------- ------------- -------------
Net increase..................... 377,773 $ 2,684,705 109,884 $ 756,659
============== ============= ============= =============
</TABLE>
* Lebenthal New York Municipal Bond Fund--Class B commenced operations on
December 3, 1997.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
<TABLE>
<CAPTION>
Lebenthal Taxable Municipal Bond Fund Lebenthal Taxable Municipal Bond Fund
Year Ended Year Ended
November 30, 1998 November 30, 1997
---------------------------------------- ------------------------------------------
Shares Amount Shares Amount
------------------ -------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
Sold .......................... 558,753 $ 4,254,162 399,620 $ 2,813,420
Issued as reinvestment of dividends 93,338 706,972 99,357 698,549
Redeemed......................... (385,439) (2,909,523) (514,463) (3,626,569)
-------------- ------------- ------------- -------------
Net increase/(decrease).......... 266,652 $ 2,051,611 (15,486) $ (114,600)
============== ============= ============= =============
</TABLE>
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 $100,083,091,
$5,031,448, and $4,827,894, 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 $94,941,310, $2,424,643, and $3,781,426,
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 $227,872 ($213,105 and $14,767
expiring November 30, 2001 and November 30, 2004, respectively) and $311,184
($88,183 and $223,001 expiring November 30, 2003 and November 30, 2004,
respectively) for the, 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.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
INDEPENDENT AUDITOR'S REPORT
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To the Shareholders and Board of Directors of the
Lebenthal Funds, Inc.:
In our opinion, the accompanying statements of assets and liabilities, including
the statements of portfolio investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of each of the Funds
constituting Lebenthal Funds, Inc., hereafter referred to as the "Funds", at
November 30, 1998, and the results of their operations, the changes in their net
assets and the financial highlights for each of the fiscal periods presented, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights, hereafter referred to as "financial
statements," are the responsibility of the Funds' management; our responsibility
is to express an opinion on these financial statements based on our audits. The
financial highlights for each of the three years in the period ended November
30, 1996 for the Funds were audited by other auditors, whose report, dated
January 10, 1997, expressed an unqualified opinion on those statements. We
conducted our audits of these financial statements in accordance with generally
accepted auditing standards, which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at November 30, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
/s/ PricewaterhouseCoopers LLP
Kansas City, Missouri
January 12, 1999
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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.
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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
[GRAPHIC OMITTED]
LEBENTHAL
120 Broadway, New York, New York 10271
(212) 425-6116
OUTSIDE OF NYC 1-800-221-5822
