LEBENTHAL
FUNDS, INC.
Semi-Annual Report
May 31, 1999
(Unaudited)
[GRAPHIC]
LEBENTHAL
THE WORKHORSE OF INVESTMENTS.
<PAGE>
LEBENTHAL 120 BROADWAY, NEW YORK, NY 10271
FUNDS, INC. 212-425-6116
OUTSIDE NYC TOLL FREE 1-800-221-58221
================================================================================
Dear Shareholder:
For the twelve months ended May 31, 1999 Lipper Analytical Services, Inc.,
(Lipper) ranked the $147.6 million Lebenthal New York Fund (class A shares) 13
of the 98 NY funds listed as being peer funds. For the twelve months ended May
31, 1999 Lipper ranked the $3.2 million Lebenthal New York Fund (class B shares)
62 of the 98 NY peer funds. For the three years ended May 31, 1999, Lipper
ranked the NY Fund (class A shares) 6 out of 86 peer funds. For the five years
ended May 31, 1999, Lipper ranked the NY Fund (class A shares) 1 out of 63 peer
funds.
For the twelve months ended May 31, 1999, Lipper ranked (a) the $9.6 million
Lebenthal New Jersey Fund 3 of 57 New Jersey funds listed as being peer funds
and (b) the $15.8 million Lebenthal Taxable Municipal Fund 117 of 157 taxable
funds listed as being peer funds. For the three years ended May 31, 1999, Lipper
ranked (a) the New Jersey Fund 2 of 48 New Jersey funds listed as being peer
funds and (b) the Taxable Municipal Fund 4 out of 129 taxable funds listed as
being peer funds. For the five years ended May 31, 1999, Lipper ranked (a) the
New Jersey Fund 4 of 34 New Jersey funds listed as being peer funds and (b) the
Taxable Municipal Fund 5 out of 86 taxable funds listed as being peer funds.
Total returns as provided by Lipper are historical and do not include any sales
charges. Fees waived by the Lebenthal New Jersey and Lebenthal Taxable Municipal
Bond Funds may have had a material effect on the total return figures.
The total return statistics of the Lebenthal Funds for the year ended May 31,
1999, were 4.20% for the New York Fund A shares, 3.37% for the New York Fund B
shares, 4.85% for the New Jersey Fund, and 2.08% for the Taxable Municipal Bond
Fund. These figures do not reflect the maximum sales charges. Taking that into
account, an investor who put $1,000 into each of the funds on June 1, 1998,
reinvested the monthly dividends, and sold on May 31, 1999, would have offset
the full sales charge and received $998.50 from the New York Fund A shares,
$990.60 from New York Fund B shares, $1,005.00 from the New Jersey Fund, and
$979.10 from the Taxable Municipal Fund.
The total return statistics of the Lebenthal Funds for the three years ended May
31, 1999, were 25.49% for the New York Fund, 25.99% for the New Jersey Fund, and
29.99% for the Taxable Municipal Bond Fund. These figures do not reflect the
maximum 4.5% sales charge. Taking that into account, an investor who put $1,000
into each of the funds on June 1,1996, reinvested the monthly dividends, and
sold on May 31, 1999, would have offset the full sales charge and still have
received $1,063.40 from the New York Fund, $1,065.00 from the New Jersey Fund,
and $1,076.40 from the Taxable Municipal Fund.
The cumulative total return of the Lebenthal New York Fund for the five years
ended May 31, 1999, was 45.29% excluding the 4.5% maximum sales charge and
38.75% if the full 4.5% load had been paid on June 1,1994. The cumulative total
return of the Lebenthal New Jersey Fund for the five years ended May 31, 1999,
was 41.35% excluding the 4.5% maximum sales charge and 34.99% if the full 4.5%
load had been paid on June 1,1994. The cumulative total return of the Lebenthal
Taxable Municipal Bonds Fund for the five years ended May 31, 1999, was 53.34%
excluding the 4.5% maximum sales charge and 46.44% if the full 4.5% load had
been paid on June
<PAGE>
1,1994. 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
or the full contingent deferred sales charge of 5% in the case of the B shares
of the Lebenthal New York Fund, from inception through May 31, 1999, was (a)
71.45% for the Lebenthal New York Municipal Bond Fund--class A shares (inception
June 24,1991); (b) 2.75% for the Lebenthal New York Municipal Bond Fund--class B
(inception December 1, 1997) (c) 24.50% for the Lebenthal New Jersey Bond Fund
(inception December 1,1993); and (d) 41.81% for the Lebenthal Taxable Municipal
Bond Fund (inception December 1,1993).
The SEC yields of the funds at their May 31, 1999, offering prices were: New
York (class A), 4.26%; New York (class B), 3.63%; New Jersey, 4.19%; and Taxable
Municipal, 6.38%. 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 are attractive after their recent
substantial sell-off, the Lebenthal Funds are mostly fully invested but in
defensive instruments that we think will hold their value relatively well if
interest rates should continue to rise. Please note that the securities in each
fund are easily marketed so that we can take advantage of trading opportunities.
For the long run, we think that bonds represent good value at current yield
levels versus other investment alternatives and versus inflation and, 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.
We thank you for the opportunity to be of service.
Very truly yours,
/s/ James L. Gammon
<PAGE>
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
MAY 31, 1999 (UNAUDITED)
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<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ -------- ------- --------
MUNICIPAL BONDS (90.61%)
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<S> <C> <C> <C> <C>
$ 2,000,000 Cattaraugus County, New York IDA Civic Facility (Olean General Hospital
Project) - Series A, 5.25%, due 08/01/23, (LOC-Fleet National Bank) $ 1,938,620 A+
1,375,000 Dutchess County, New York IDA Civic Facility (Astor Learning Center),
5.15%, due 11/1/24, (LOC-Bank of New York) 1,316,713 AA-
1,600,000 Long Island Power Authority, New York Electric System - Series A,
5.50%, due 12/01/29 1,618,031 Baa1 A-
760,000 Metropolitan Trans Authority, New York Commuter Facility - Series C-1,
5.375%, due 07/01/27, (FGIC Insured) 772,692 Aaa AAA
1,285,000 Monroe County, New York IDA Civic Facility (DePaul Community Facility),
6.50%, due 02/01/24, (SONYMA Insured) 1,411,341 Aa1
500,000 Monroe County, New York IDA Civic Facility (Nazareth College),
5.25%, due 04/01/23, (MBIA Insured) 499,965 AAA
2,020,000 New York, New York (Unrefunded Balance) - Series I, General Obligation,
6.25%, due 04/15/27 2,210,163 A3 A
3,000,000 New York, New York, City Housing Development Corp Multifamily Housing
Revenue - Series B, 5.25%, due 11/01/31 2,981,370 Aa2 AA
1,150,000 New York, New York, City Municipal Water - Series B, 5.75%, due 06/15/26,
(MBIA Insured) 1,217,436 Aaa AAA
1,705,000 New York State Dormitory Authority (Health Facilities) - Series A,
5.50%, due 05/15/24, (FSA Insured) 1,751,069 Aaa AAA
6,875,000 New York State Dormitory Authority (Highlands Living),
6.60%, due 02/01/34, (FHA Insured) 7,513,275 AA
2,330,000 New York State Dormitory Authority (Presbyterian Residential Community),
6.50%, due 08/01/34, (FHA Insured) 2,514,653 AA
3,500,000 New York State Dormitory Authority (Jewish Geriatric - Long Island),
7.35%, due 08/01/29, (FHA Insured) 3,964,310 AAA
5,190,000 New York State Dormitory Authority (Niagara Frontier Home),
6.40%, due 02/01/35, (FHA Insured) 5,617,760 AA
1,000,000 New York State Dormitory Authority (St. Lukes Home Residential Health),
6.375%, due 08/01/35, (FHA Insured) 1,086,380 AA
3,900,000 New York State Dormitory Authority (Nottingham Retirement Community),
6.125%, due 07/01/25, (SONYMA Insured) 4,202,601 Aa1
4,755,000 New York State Dormitory Authority (Geneva Nursing Home),
6.20%, due 08/01/35, (FHA Insured) 5,114,098 AA
3,300,000 New York State Dormitory Authority (Ellis Hospital),
5.60%, due 08/01/25, (MBIA/FHA Insured) 3,393,357 Aaa AAA
</TABLE>
See Notes to Financial Statements.
<PAGE>
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1999 (UNAUDITED)
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<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ -------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,750,000 New York State Dormitory Authority (Nursing Home-St. Johns Health),
6.25%, due 02/01/36, (FHA Insured) $ 6,215,405 AA
2,730,000 New York State Dormitory Authority (Jewish Home of Central NY),
6.25%, due 07/01/25, (LOC-Onbank & Trust Co.) 2,973,380 Aaa
500,000 New York State Dormitory Authority (Dept. Of Education),
5.75%, due 07/01/21 524,495 Aaa AAA
2,400,000 New York State Dormitory Authority (Nursing Home),
6.125%, due 02/01/36, (FHA Insured) 2,567,376 AAA
3,000,000 New York State Dormitory Authority (Methodist Hospital) - Series A,
6.05%, due 02/01/34, (AMBAC/FHA Insured) 3,204,240 Aaa AAA
750,000 New York State Dormitory Authority (Grace Manor Health Care Facility),
6.15%, due 07/01/18, (SONYMA Insured) 821,400 Aa1
4,000,000 New York State Dormitory Authority (Nursing Home-Menorah Campus),
6.10%, due 02/01/37, (FHA Insured) 4,283,200 AAA
700,000 New York State Dormitory Authority (Millard Fillmore Hospital),
5.375%, due 02/01/32, (AMBAC/FHA Insured) 706,223 Aaa AAA
1,000,000 New York State Dormitory Authority (Nursing Home-Rosalind & Joseph),
5.70%, due 02/01/37, (AMBAC/FHA Insured) 1,037,560 Aaa AAA
750,000 New York State Dormitory Authority (Chapel Oaks Inc.),
5.45%, due 07/01/26, (LOC-Allied Irish Bank) 745,755 Aa3
1,200,000 New York State Dormitory Authority (State University Educational
Facilities), 5.125%, due 05/15/27 1,159,344 A3 A-
1,500,000 New York State Dormitory Authority (Hunts Point Multi-Service Center),
5.625%, due 07/01/22, (SONYMA Insured) 1,552,575 Aa1
2,000,000 New York State Dormitory Authority (Mental Health Services) - Series D,
5.125%, due 08/15/27, (FSA Insured) 1,948,900 A3 AAA
500,000 New York State Dormitory Authority (Saint Barnabas Hospital),
5.45%, due 08/01/35, (AMBAC/FHA Insured) 506,805 Aaa AAA
1,000,000 New York State Dormitory Authority (FHA-Nursing Home - Center for
Nursing), 5.55%, due 08/01/37, (FHA Insured) 1,018,260 AA
1,000,000 New York State Dormitory Authority (North Shore University Hospital),
5.25%, due 11/01/19, (MBIA Insured) 996,230 Aaa AAA
2,000,000 New York State Dormitory Authority (Mental Health Services)- Series B
5.00%, due 02/15/28, (FSA Insured) 1,909,000 Aaa AAA
1,000,000 New York State Dormitory Authority (UTD Hospital Medical Center)
5.20%, due 08/1/2018, (MBIA/FHA Insured) 988,690 Aaa AAA
</TABLE>
See Notes to Financial Statements.
<PAGE>
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
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 (Menorah Home)
5.10%, due 08/01/28, (AMBAC/FHA Insured) $ 1,949,480 Aaa AAA
2,500,000 New York State Dormitory Authority (Sisters Charity Health Care
Hospital) 5.00%, due 08/01/38, (MBIA/FHA Insured) 2,353,050 Aaa AAA
3,800,000 New York State Dormitory Authority (Brooklyn Hospital Center)
5.15%, due 02/01/29, (AMBAC/FHA Insured) 3,709,370 Aaa AAA
270,000 New York State Energy Research & Development Authority - Electric
Facilities - (Long Island Lighting), 7.15%, due 02/01/22 290,936 A2 A-
1,000,000 New York State Energy Research & Development Authority-Gas Facilities,
(Brooklyn Union Gas), 6.75%, due 02/01/24, (MBIA Insured) 1,081,970 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) 537,115 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) 3,751,424 A2
1,500,000 New York State Housing Finance Agency (Insured-Multifamily Mortgage) -
Series C, 6.50%, due 08/15/24, (FHA Insured) 1,587,360 Aa2 AAA
1,990,000 New York State Housing Finance Agency (Housing Project Mortgage) -
Series A, 6.125%, due 11/01/20, (FSA Insured) 2,134,693 Aaa AAA
2,000,000 New York State Housing Finance Agency (Multifamily Housing) -
Series D, 6.10%, due 11/15/36, (FHA Insured) 2,130,080 AAA
1,940,000 New York State Housing Finance Agency (Hospital & Health Care) -
Series A, 5.15%, due 11/01/16, (MBIA Insured) 1,918,388 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) 1,900,150 AAA
60,000 New York State Medical Care Facilities Finance Agency,
7.30%, due 02/15/21 64,954 A3
6,750,000 New York State Medical Care Facilities Finance Agency - Series B,
6.60%, due 08/15/34, (FHA Insured) 7,402,793 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) 2,729,924 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) 7,524,070 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) 5,439,250 Aa2 AA
1,000,000 New York State Urban Development Corp, (Senior Lien Corp.),
5.50%, due 07/01/26, (HUD Insured) 1,024,370 Aaa AAA
</TABLE>
See Notes to Financial Statements.
<PAGE>
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ -------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 500,000 Oneida County New York Development Agency, (Mohawk Valley Handicap)
5.30%, due 03/15/19, (ACA Insured) $ 492,725 A
1,600,000 Oswego County New York Development Agency, (Seneca Hill Project), -
Series A 5.65%, due 08/01/37, (FHA Insured) 1,648,544 AA
600,000 Oswego County New York Development Agency, (Saint Luke Residential
Health) - Series A, 5.40%, due 02/01/38, (FHA Insured) 598,014 AAA
1,000,000 Otsego County New York Development Agency, (Bassett Healthcare
Project B), 5.375%, due 11/01/20, (MBIA Insured) 1,016,610 Aaa AAA
3,000,000 Syracuse New York Housing Authority (Loretto Residential Health) -
Series A, 5.80%, due 08/01/37, (FHA Insured) 3,125,820 AAA
-------------
Total Municipal Bonds (Cost $129,103,772) 136,693,762
-------------
</TABLE>
<TABLE>
<CAPTION>
Shares
------
CLOSED-END FUNDS (7.92%)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
5,000 Blackrock New York Insured $ 77,500
19,000 Morgan Stanley Dean Witter New York Quality 250,562
91,300 Muniholdings New York Insured Fund 1,329,555
16,200 Muniholdings New York Fund Inc. 233,888
196,196 Muniyield New York Insured Fund II 2,844,842
57,200 Muniyield New York Insured Fund 865,150
82,000 Nuveen New York Performance Plus 1,337,625
79,100 Nuveen New York Investment Quality Muni Fund 1,260,656
97,500 Nuveen New York Select Quality 1,547,813
22,300 Nuveen New York Quality Inc. 347,044
51,000 Van Kampen Merritt New York Quality Muni Trust 806,438
64,000 Van Kampen Merritt 1,044,000
-------------
Total Closed-End Funds (Cost $12,091,079) 11,945,073
-------------
Total Investments (98.53%) (Cost $141,194,851)+ [d1] 148,638,835
Cash and Other Assets, Net of Liabilities (1.47%) 2,212,447
-------------
Net Assets (100.00%) $ 150,851,282
=============
</TABLE>
See Notes to Financial Statements.
<PAGE>
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1999 (UNAUDITED)
================================================================================
+ Aggregate cost for federal income tax purposes is identical.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $8,022,083 and $578,099 respectively,
resulting in net unrealized appreciation of $7,443,984.
KEY:
ACA = American Collectors Association
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
MAY 31, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ -------- ------- --------
MUNICIPAL BONDS (88.20%)
- -----------------------------------------------------------------------------------------------------------------------------
<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) $ 142,071 Aaa AAA
110,000 Essex County, New Jersey Import Authority, County Correctional
Facility - Series A, 5.70%, due 01/01/27, (FGIC Insured) 116,639 Aaa AAA
70,000 Essex County, New Jersey Import Authority Orange School District -
Series A, 6.95%, due 07/01/14, (MBIA Insured) 81,500 Aaa AAA
100,000 Essex County, New Jersey Utilities Authority, Solid Waste Revenue -
Series A, 5.00%, due 04/01/22, (FSA Insured) 98,124 Aaa AAA
200,000 Guam Housing Corp., Single Family - Series A,
5.75%, due 09/01/31, (FHLMC Insured) 212,532 AAA
100,000 Irvington, New Jersey Housing & Mortgage Finance Authority,
6.50%, due 02/01/24, (FHA Insured) 106,324 AAA
300,000 Middlesex County New Jersey Import Authority,
5.90%, due 9/15/21 322,163 Aa3 A+
250,000 New Brunswick, New Jersey Parking Authority Revenue,
5.00%, due 01/01/29, (FGIC Insured) 243,953 Aaa AAA
100,000 New Jersey Economic Development Authority, Economic Development
Revenue, American Airlines Inc. Project, 7.10%, due 11/01/31 107,533 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) 266,760 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) 164,132 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) 162,971 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) 213,844 A+
100,000 New Jersey Economic Development Authority, Pollution Control Revenue,
PSE&G Co. Project, 6.40%, due 05/01/32, (MBIA Insured) 109,772 Aaa AAA
100,000 New Jersey Economic Development Authority, N. J. American Water Co.
Project A, 6.875%, due 11/01/34, (FGIC Insured) 112,115 Aaa AAA
</TABLE>
See Notes to Financial Statements.
<PAGE>
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ -------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 85,000 New Jersey Health Care Facilities Financing Authority, Irvington
General Hospital Issue, 6.40%, due 08/01/25, (FHA Insured) $ 95,447 AAA
125,000 New Jersey Health Care Facilities Financing Authority - General
Hospital Center at Passaic, 6.75%, due 07/01/19, (FSA Insured) 148,776 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) 111,461 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) 159,603 AAA
25,000 New Jersey Health Care Facilities Financing Authority, Capital Health
System Obligation Group, 5.25%, due 07/01/27 22,846 Baa2 BBB-
100,000 New Jersey Health Care Facilities Financing Authority, Community
Medical Center/Kimball, 5.50%, due 07/01/08 106,316 Aaa AAA
235,000 New Jersey Health Care Facilities Financing Authority Revenue
Cathedral Health Services, 5.25%, due 08/01/21, (MBIA/FHA Insured) 236,509 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) 243,678 Aaa AAA
250,000 New Jersey Health Care Facilities Financing Authority Revenue, Palisades
Medical Center Obligation Group, 5.25%, due 07/01/28, (ACA Insured) 243,800 A
100,000 New Jersey Economic Development Authority Revenue, AMT Economic
Growth Series D, 6.55%, due 08/01/14, (LOC - Fleet Bank), Subject to AMT 108,102 A+
100,000 New Jersey Economic Development Authority Revenue, Sewer Facilities,
Anheuser-Busch Project, 5.85%, due 12/01/30, Subject to AMT 106,402 A1 A+
290,000 New Jersey State Education Facilities Authority, Monmouth University -
Series C, 5.40%, due 07/01/06 302,786 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) 106,742 Aaa AAA
150,000 New Jersey State Education Facilities Authority, Trenton State
College - Series E, 6.00%, due 07/01/19, (AMBAC Insured) 160,655 Aaa AAA
375,000 New Jersey State Educational Facilities Authority, Kean University -
Series A, 5.00%, due 07/01/27, (AMBAC Insured) 366,134 Aaa AAA
240,000 New Jersey State Higher Education Assistance Authority, Student
Loan Program - Series A, 5.80%, due 06/01/16, (MBIA Insured) 254,974 Aaa AAA
75,000 New Jersey State Higher Education Assistance Authority, Student Loan -
Series A, 5.30%, due 06/01/17, (AMBAC Insured) 75,373 Aaa AAA
125,000 New Jersey State Housing & Mortgage Finance Agency, MHRB
Refunding - Presidential Plaza, 7.00%, due 05/01/30, (FHA Insured) 135,064 AAA
</TABLE>
See Notes to Financial Statements.
<PAGE>
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ -------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 300,000 New Jersey State Housing & Mortgage Finance Agency, MHRB -
Series A, 6.05%, due 11/01/20, (AMBAC/FHA Insured) $ 316,974 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 106,608 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 76,837 Aaa AAA
125,000 New Jersey State Housing & Mortgage Finance Agency,
Series A, , 6.95%, due 11/01/13, (HUD Section 8 Insured) 134,921 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 159,992 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 402,335 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) 154,168 AAA
250,000 Plainfield, New Jersey Board of Education, Refunding,
5.00%, due 08/01/26, (FSA Insured) 244,173 Aaa 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) 841,231 Aaa AAA
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 73,297 Aaa AAA
500,000 South Jersey Transportation Authority, New Jersey Transportation System
Revenue, 5.00%, due 11/01/29, (AMBAC Insured) 486,270 Aaa AAA
-------------
Total Municipal Bonds (Cost $8,021,688) 8,441,907
-------------
</TABLE>
<TABLE>
<CAPTION>
Shares
------
CLOSED-END FUNDS (9.18%)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
25,000 Muniyield New Jersey Insured Fund 379,688
3,400 Munivest New Jersey Fund 45,900
31,114 Muniyield New Jersey Fund 453,098
-------------
Total Closed-End Funds (Cost $895,018) 878,685
-------------
</TABLE>
See Notes to Financial Statements.
<PAGE>
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Value
Amount (Note 1)
------ --------
COMMERCIAL PAPER (4.44%)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 425,000 Ford Motor Credit Corporation , 4.83% due 6/2/99 $ 425,000
-------------
Total Commercial Paper (Cost $425,000) 425,000
-------------
Total Investments (101.82%)(Cost $9,341,706)+ 9,745,592
Cash and Other Assets, Net of Liabilities (-1.82%) (174,380)
-------------
Net Assets (100.00%) $ 9,571,212
=============
</TABLE>
+ Aggregate cost for federal income tax purposes is identical.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $434,176 and $30,290 respectively,
resulting in net unrealized appreciation of $403,886.
KEY:
ACA = American Collectors Association
AMBAC = Ambac Indemnity Corporation
AMT = Alternative Minimum Tax
FGIC = Financial Guaranty Insurance Corporation
FHA = Federal Housing Administration
FHLMA = Federal Home Loan Mortgage Association
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
FSA = Financial Security Assurance, Inc.
GNMA = Government National Mortgage Associaton
HUD = Department of Housing and Urban Development
LOC = Letter of Credit
MBIA = Municipal Bond Insurance Association
See Notes to Financial Statements.
<PAGE>
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
MAY 31, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ -------- ------- --------
MUNICIPAL BONDS (86.62%)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 150,000 All Saints Health System, 9.00%, due 08/15/24, (MBIA Insured) $ 162,960 Aaa AAA
385,000 Baltimore, Maryland - Series B, General Obligation,
7.90%, due 10/15/16, (FGIC Insured) 405,247 Aaa AAA
1,100,000 Bastrop, Texas Economic Development Corporation, Sales Tax,
8.00%, due 08/15/16 1,154,956 BBB+
100,000 Buffalo, New York - Series F, 9.05%, due 02/01/15, (AMBAC Insured) 104,107 Aaa AAA
240,000 California Housing Finance Agency, Multi-family Housing - Series C,
8.10%, due 02/01/37, (AMBAC Insured) 250,214 Aaa AAA
700,000 Cedartown, Georgia Development Authority, Industrial Park Project A,
7.00%, due 02/01/22, (AMBAC Insured) 691,383 Aaa AAA
2,000,000 Compton, California Community Redevelopment Agency - Series C,
Tax Allocation, 0.00%*, due 08/01/22, (FSA Insured) 370,660 Aaa AAA
150,000 Connecticut State Health and Educational Facilities Authority,
Maefair Health Care, 9.20%, due 11/01/24 179,655 A1 AA-
150,000 Connecticut State Health and Educational Facilities Authority,
Shady Knoll Center, 8.90%, due 11/01/24 171,225 A1 AA-
255,000 Connecticut State Housing Finance Authority - Series F,
9.25%, due 05/15/27 270,428 Aa2 AA
200,000 Connecticut State Housing Finance Authority - Series G,
7.625%, due 05/15/21 200,180 Aa2 AA
100,000 Connecticut State Development Authority - Sub Series B1,
8.50%, due 08/15/14 107,476 A+
125,000 Conyers, Georgia Water & Sewer - Series B,
8.75%, due 07/01/15, (AMBAC Insured) 133,009 Aaa AAA
250,000 Cuyahoga County, Ohio Economic Development, Gateway Arena Project -
Series A, 8.625%, due 06/01/22 274,585
100,000 Dallas-Fort Worth Texas International, Airport Facilities Improvement,
7.07%, due 11/01/24, (MBIA Insured) 99,985 Aaa AAA
500,000 De Kalb County, Georgia Development Authority Revenue,
VA Regional Office Project, 6.875%, due 03/01/20, (MBIA Insured) 466,330 Aaa AAA
500,000 Detroit, Michigan Downtown Development Authority, Development Area No 1
Projects Series - B, 6.68%, due 07/01/28, (MBIA Insured) 466,495 Aaa AAA
200,000 Florida Housing Finance Agency, Taxable Housing Mariner Club - K-2,
8.25%, due 09/01/15, (AMBAC Insured) 204,006 Aaa AAA
1,230,000 Harrisburg, Pennsylvania - Series A, General Obligation,
0.00%*, due 04/01/18, (AMBAC Insured) 320,969 Aaa AAA
</TABLE>
See Notes to Financial Statements.
<PAGE>
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ -------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,165,000 Harrisburg, Pennsylvania - Series A, General Obligation,
0.00%*, due 04/01/19, (AMBAC Insured) $ 285,833 Aaa AAA
350,000 Harrison County, Mississippi - Series A, General Obligation,
7.75%, due 04/01/16, (MBIA Insured) 357,560 Aaa
150,000 Idaho Housing Agency, 8.50%, due 07/01/09, (HUD Section 8 Insured) 153,255 A
150,000 Illinois Housing Development Authority, Affordable Housing Project,
8.64%, due 12/01/21, (AMBAC Insured) 152,820 Aaa AAA
2,180,000 Kern County, California Pension Obligation,
0.00%*, due 08/15/18, (MBIA Insured) 559,148 Aaa AAA
325,000 Maryland State Community Development Administration - Series F,
9.10%, due 05/15/10, (MHF Insured) 339,398 Aa3
150,000 Memorial Health System, Illinois, 8.375%, due 10/01/20, (MBIA Insured) 161,295 Aaa AAA
200,000 Michigan State Housing Development Authority - Series A,
8.30%, due 11/01/15, (AMBAC Insured) 210,800 Aaa AAA
50,000 Minnesota State Housing Finance Agency, Rental Housing - Series B,
8.00%, due 02/01/18 50,550 AA
45,000 Minnesota State Housing Finance Agency, Single Family Mortgage - Series G,
8.05%, due 01/01/12 44,721 Aa2 AA+
600,000 Mississippi Hospital Equipment and Facilities Authority, Wesley Health
Systems - Series A, 9.10%, due 04/01/06 669,024 AAA
65,000 New Hampshire State Housing and Finance Authority, Single Family -
Series C, 9.40%, due 07/01/14 65,756 Aa2
240,000 New Jersey State Housing and Mortgage Finance Agency, Rental Housing -
Series E, 8.95%, due 11/01/12 248,544 AA-
700,000 New York State Dormitory Authority, Highland Hospital - Series B,
7.45%, due 08/01/35, (MBIA Insured) 707,210 Aaa AAA
250,000 New York State Environmental Facilities - Series A,
9.625%, due 03/15/21 277,997 Baa1 AAA
300,000 New York State Housing Finance Agency, Multi-family Housing - Series B,
8.25%, due 05/15/35, (FHA Insured) 300,330 AAA
350,000 New York State Housing Finance Agency, Multi-family Housing - Series C,
8.11%, due 11/15/38, (FHA Insured) 367,395 AAA
110,000 New York State Housing Finance Agency, Service Contract Obligation -
Series B, 8.60%, due 03/15/04 118,208 Baa1 BBB+
100,000 Pittsburgh, Pennsylvania Urban Redevelopment Authority,
9.07%, due 09/01/14, (FSA Insured) 110,996 Aaa AAA
</TABLE>
See Notes to Financial Statements.
<PAGE>
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------ -------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 300,000 Sacramento County, California - Series A,
7.68%, due 08/15/21, (MBIA Insured) $ 324,342 Aaa AAA
120,000 Southeastern Pennsylvania Transit Authority - Series B,
8.75%, due 03/01/20, (FGIC Insured) 130,372 Aaa AAA
300,000 Tampa, Florida Sports Authority, Hillsboro Arena Project,
8.07%, due 10/01/26, (MBIA Insured) 308,901 Aaa AAA
375,000 Texas State Department of Housing & Community Affairs - Series C-1,
7.76%, due 09/01/17, (MBIA Insured) 385,950 Aaa AAA
300,000 Texas State, Veterans Housing, General Obligation,
7.35%, due 12/01/21 295,578 Aa2 AA
500,000 Virginia State Housing Development Authority Commonwealth Mortgage,
7.80%, due 07/01/17 503,600 Aa1 AA+
365,000 Virginia State Housing Development Authority, Multi-family -
Series A, 8.125%, due 11/01/15 370,891 Aa1 AA+
175,000 Wisconsin Housing & Economic Development Authority - Series H,
7.875%, due 03/01/26 176,517 Aa2 AA
-------------
Total Municipal Bonds (Cost $13,224,365) 13,710,861
-------------
</TABLE>
<TABLE>
<CAPTION>
Shares
------
CLOSED-END FUNDS (8.95%)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
100,000 Blackrock Income Trust Incorporated 662,500
90,795 Hyperion Total Return Fund Incorporated 754,733
-------------
Total Closed-End Funds (Cost $1,441,785) 1,417,233
-------------
</TABLE>
See Notes to Financial Statements.
<PAGE>
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Value
Amount (Note 1)
------ -------------
COMMERCIAL PAPER (7.58%)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 650,000 Ford Motor Credit Corporation, 4.80% due 6/2/99 $ 650,000
550,000 Ford Motor Credit Corporation, 4.80% due 6/3/99 550,000
-------------
Total Commercial Paper (Cost $1,200,000) 1,200,000
-------------
Total Investments (103.15%)(Cost$15,866,150)+ 16,328,094
Liabilities in Excess of Cash and Other Assets (-3.15%) (499,127)
-------------
Net Assets (100.00%) $ 15,828,967
=============
</TABLE>
+ Aggregate cost for federal income tax purposes is identical.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $567,050 and $105,106 respectively,
resulting in net unrealized appreciation of $461,944
* Zero Coupon Bond
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
MBIA = Municipal Bond Insurance Association
MHF = Maryland Housing Fund
See Notes to Financial Statements.
<PAGE>
LEBENTHAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
MAY 31, 1999 (UNAUDITED)
================================================================================
<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 $141,194,851,
$9,341,706 and $15,866,150)......................... $ 148,638,835 $ 9,745,592 $ 16,328,094
Cash................................................... 159,212 6,737 3,322
Receivables:
Securities sold................................... 987,790 98,867 --
Capital shares sold............................... 630,047 89,340 21,402
Interest and Dividends............................ 2,338,465 136,846 229,620
Due from Manager.................................. 2,561 25,760 17,879
------------- ------------- -------------
Total assets.................................... 152,756,910 10,103,142 16,600,317
------------- ------------- -------------
LIABILITIES
Payables:
Securities purchased.............................. 1,281,465 486,270 658,250
Capital shares redeemed........................... 47,199 -- 29,763
Dividends declared................................ 431,449 27,404 62,378
Distribution fee payable (Note 3)................. 31,506 -- --
Management fee payable (Note 2)................... 28,861 2,056 3,376
Administration fee payable........................ 24,892 1,503 2,737
Accrued expenses and other liabilities................. 60,256 14,697 14,846
------------- ------------- -------------
Total liabilities............................... 1,905,628 531,930 771,350
------------- ------------- -------------
NET ASSETS............................................. $ 150,851,282 $ 9,571,212 $ 15,828,967
============= ============= =============
NET ASSETS consist of:
Par value.............................................. $ 18,262 $ 1,356 $ 2,198
Paid in capital........................................ 143,239,318 9,406,781 15,607,740
Undistributed investment income-net.................... 8,414 -- --
Accumulated net realized gain/(loss) on investments.... 141,304 (240,811) (242,915)
Unrealized appreciation on investments--net............ 7,443,984 403,886 461,944
Total net assets................................ $ 150,851,282 $ 9,571,212 $ 15,828,967
============= ============= =============
Class A
Net Assets............................................. $ 147,605,362 $ 9,571,212 $ 15,828,967
Shares outstanding (Note 4)............................ 17,869,680 1,356,240 2,198,115
Net asset value, and redemption price per share........ $ 8.26 $ 7.06 $ 7.20
Maximum offering price per share*...................... $ 8.65 $ 7.39 $ 7.54
Class B
Net Assets............................................. $ 3,245,920 $ -- $ --
Shares outstanding (Note 4)............................ 392,787 -- --
Net asset value, and redemption price per share**...... $ 8.26 $ -- $ --
</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
SIX MONTHS ENDED MAY 31, 1999 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Lebenthal New York Lebenthal New Jersey Lebenthal New Jersey
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
-------------------- -------------------- --------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest ........................................... $ 4,167,104 $ 250,560 $ 585,369
Dividends........................................... 56,353 5,843 34,159
------------- ------------- -------------
Total income...................................... 4,223,457 256,403 619,528
------------- ------------- -------------
Expenses:
Management fee (Note 2)............................. 167,665 11,889 21,118
Distribution fee:
Class A (Note 3).................................. 184,896 11,889 21,118
Class B (Note 3).................................. 15,197 -- --
Shareholder servicing fees:
Class A........................................... 44,086 12,241 14,194
Class B........................................... 14,841 -- --
Administration fee.................................. 74,086 4,574 8,245
Printing............................................ 7,910 525 1,121
Custodian fee....................................... 9,342 498 1,563
Interest............................................ 1,027 464 401
Legal and compliance fees........................... 30,060 504 1,103
Audit and accounting fees........................... 45,855 19,121 19,657
Directors' fees..................................... 3,650 152 368
Registration fees:
Class A........................................... 1,615 2,464 3,222
Class B........................................... 180 -- --
Other............................................... 8,543 26 25
------------- ------------- -------------
Total expenses.................................... 608,953 64,347 92,135
Less: Reimbursement of expenses by Manager (Note 2). -- (18,703) (3,039)
Fees waived by Distributor (Note 3).......... (15,197) (11,889) (21,118)
Fees paid indirectly (Note 1)................ (1,027) (464) (401)
------------- ------------- -------------
Net expenses...................................... 592,729 33,291 67,577
------------- ------------- -------------
Net investment income.................................. 3,630,728 223,112 551,951
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments................ 141,557 (12,687) 76,507
Change in unrealized appreciation (depreciation) of
investments......................................... (3,254,859) (173,875) (1,278,493)
------------- ------------- -------------
Net realized and unrealized gain (loss) on investments. (3,113,302) (186,562) (1,201,986)
------------- ------------- -------------
Increase (decrease) in net assets from operations...... $ 517,426 $ 36,550 $ (650,035)
============= ============= =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
LEBENTHAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Lebenthal New York Municipal Lebenthal New Jersey Municipal
Bond Fund Bond Fund
------------------------------------------ ------------------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
May 31, 1999 November 30, May 31, 1999 November 30,
(Unaudited) 1998 (Unaudited) 1998
-------------------- -------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income....... $ 3,630,728 $ 7,075,712 $ 223,112 $ 379,638
Net realized gain (loss) on
investments............... 141,557 2,462,544 (12,687) 36,505
Change in unrealized
appreciation.............. (3,254,859) 1,099,338 (173,875) 199,349
------------- ------------- ------------- ------------
Increase in net assets from
operations.................. 517,426 10,637,594 36,550 615,492
Dividends from net investment
income:
Class A shares............ (3,569,430) (7,033,260)* (223,112) (379,638)*
Class B shares............ (61,428) (42,452)* -- --
Dividends from net realized
gain on investments:
Class A shares............ (1,761,311) -- -- --
Class B shares............ (34,360) -- -- --
Capital share transactions
(Note 4).................... 5,286,649 12,767,794 715,631 2,684,705
------------- ------------- ------------- ------------
Total increase............ 377,546 16,329,676 529,069 2,920,559
Net assets:
Beginning of period......... 150,473,736 134,144,060 9,042,143 6,121,584
------------- ------------- ------------- ------------
End of period (1)........... $ 150,851,282 $ 150,473,736 $ 9,571,212 $ 9,042,143
============= ============= ============= ============
(1) Includes Undistributed Net
Investment Income........... $ 8,414 $ 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)
================================================================================
<TABLE>
<CAPTION>
Lebenthal Taxable Municipal
Bond Fund
------------------------------------------
Six Months Year
Ended Ended
May 31, 1999 November 30,
(Unaudited) 1998
-------------------- --------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income................................................... $ 551,951 $ 1,036,722
Net realized gain (loss) on investments................................. 76,507 42,480
Change in unrealized appreciation....................................... (1,278,493) 701,114
------------ ------------
Increase (decrease) in net assets from operations......................... (650,035) 1,780,316
Dividends from net investment income...................................... (551,951) (1,036,722)
Capital share transactions (Note 4)....................................... (758,126) 2,051,611
------------ ------------
Total increase (decrease)............................................. (1,960,112) 2,795,205
Net assets:
Beginning of period..................................................... 17,789,079 14,993,874
------------ ------------
End of period (1)....................................................... $ 15,828,967 $ 17,789,079
============ ============
(1) Includes Undistributed Net Investment Income............................. $ -- $ --
============ ============
</TABLE>
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
--------------------------------------------------------------------------------------
Six Months
Ended Year Ended November 30,
May 31, 1999 ------------------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994+
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period... $ 8.53 $ 8.32 $ 8.09 $ 7.99 $ 6.84 $ 8.03
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.................. 0.20 0.42 0.42 0.41 0.43 0.41
Net realized and unrealized
gain (loss) on investments.......... (0.17) 0.21 0.23 0.10 1.15 (1.15)
--------- --------- --------- --------- --------- ---------
Total from investment operations....... 0.03 0.63 0.65 0.51 1.58 (0.74)
--------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment
income.............................. (0.20) (0.42) (0.42) (0.41) (0.43) (0.41)
Distributions from net realized
gain on investments................. (0.10) -- -- -- -- (0.04)
--------- --------- --------- --------- --------- ---------
Total distributions.................... (0.30) (0.42) (0.42) (0.41) (0.43) (0.45)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period......... $ 8.26 $ 8.53 $ 8.32 $ 8.09 $ 7.99 $ 6.84
========= ========= ========= ========= ========= =========
Total Return (1)
(without deduction of sales load)... 0.39% 7.69% 8.27% 6.63%* 23.56 %(9.62)%
Ratios/Supplemental Data
Net assets, end of period (000)........ $ 147,605 $ 147,673 $ 134,144 $ 122,611 $ 105,579 $ 75,326
Ratios to average net assets:
Expenses (2)........................ 0.77%** 0.76%** 0.89%** 1.09% 0.99% 0.64%++
Net investment income (2)........... 4.83% 4.92% 5.16% 5.17% 5.63% 5.44%
Portfolio turnover..................... 27.18% 66.04% 60.80% 45.92% 148.88% 192.91%
</TABLE>
(1) Not annualized for periods less than one year.
(2) Annualized for periods less than one year.
+ 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 each period:
================================================================================
<TABLE>
<CAPTION>
Lebenthal New York
Municipal Bond Fund--Class B
----------------------------
Six Months Period
Ended Ended
May 31, 1999 November
(Unaudited) 30, 1998*
------------- -------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period....................................................... $ 8.54 $ 8.34
-------- --------
Income from investment operations:
Net investment income...................................................................... 0.17 0.33
Net realized and unrealized gain (loss) on investments..................................... (0.18) 0.20
-------- --------
Total from investment operations........................................................... (0.01) 0.53
-------- --------
Less distributions:
Dividends from net investment income....................................................... (0.17) (0.33)
Distributions from net realized gain on investments........................................ (0.10) --
-------- --------
Total distributions........................................................................ (0.27) (0.33)
-------- --------
Net asset value, end of period............................................................. $ 8.26 $ 8.54
======== ========
Total Return (1)
(without deduction of sales load)....................................................... (0.12)% 6.45%
Ratios/Supplemental Data
Net assets, end of period (000)............................................................ $ 3,246 $ 2,801
Ratios to average net assets:
Expenses++ (2).......................................................................... 1.55%** 1.55%**
Net investment income (2)............................................................... 4.03% 3.95%
Portfolio turnover......................................................................... 27.18% 66.04%
</TABLE>
(1) Not annualized for periods less than one year.
(2) Annualized for periods less than one year.
++ If the Investment Manager had not waived fees and reimbursed expenses and
the Administrator and Distributor had not waived fees, the ratio of
operating expenses to average net assets would have been 2.44% and 4.58%
for the six months ended May 31, 1999 and the year ended November 30,
1998, respectively.
* Class commenced operations on December 3, 1997.
** 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 each period:
================================================================================
<TABLE>
<CAPTION>
Lebenthal New Jersey
Municipal Bond Fund
--------------------------------------------------------------------------------------
Six Months
Ended Year Ended November 30,
May 31, 1999 ------------------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994+
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period... $ 7.20 $ 6.97 $ 6.74 $ 6.70 $ 5.95 $ 7.16
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.................. 0.17 0.35 0.35 0.36 0.36 0.32
Net realized and unrealized
gain (loss) on investments.......... (0.14) 0.23 0.23 0.04 0.75 (1.21)
--------- --------- --------- --------- --------- ---------
Total from investment operations....... 0.03 0.58 0.58 0.40 1.11 (0.89)
--------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment
income.............................. (0.17) (0.35) (0.35) (0.36) (0.36) (0.32)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period......... $ 7.06 $ 7.20 $ 6.97 $ 6.74 $ 6.70 $ 5.95
========= ========= ========= ========= ========= =========
Total Return (1)
(without deduction of sales load)... 0.40% 8.47% 8.84% 6.18%* 19.10% (12.70)%
Ratios/Supplemental Data
Net assets, end of period (000)........ $ 9,571 $ 9,042 $ 6,122 $ 5,182 $ 3,358 $ 2,145
Ratios to average net assets:
Expenses (2)........................ 0.70%** 0.60%** 0.70%** 0.63%** 0.60% 0.60%
Net investment income (2)........... 4.69% 4.87% 5.12% 5.37% 5.64% 4.97%
Portfolio turnover..................... 26.85% 31.87% 57.19% 28.56% 61.69% 291.60%
</TABLE>
(1) Not annualized for periods less than one year.
(2) Annualized for periods less than one year.
+ 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 1.34%, 1.60%,
2.57%, 3.20%, 4.13%, and 4.83% for the six months ended May 31, 1999 and
the years ended November 30, 1998, 1997, 1996, 1995 and 1994,
respectively.
* Fund commenced operations on December 1, 1993.
** Includes fees paid indirectly of 0.01%, 0.02%, 0.02%, and 0.03% of average
net assets for 1999, 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
--------------------------------------------------------------------------------------
Six Months
Ended Year Ended November 30,
May 31, 1999 ------------------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994+
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period... $ 7.73 $ 7.37 $ 7.13 $ 7.22 $ 6.34 $ 7.16
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.................. 0.25 0.49 0.50 0.52 0.53 0.44
Net realized and unrealized
gain (loss) on investments.......... (0.54) 0.36 0.24 (0.09) 0.88 (0.82)
--------- --------- --------- --------- --------- ---------
Total from investment operations....... (0.29) 0.85 0.74 0.43 1.41 (0.38)
--------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment
income.............................. (0.24) (0.49) (0.50) (0.52) (0.53) (0.44)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period......... $ 7.20 $ 7.73 $ 7.37 $ 7.13 $ 7.22 $ 6.34
========= ========= ========= ========= ========= =========
Total Return (1)
(without deduction of sales load)... (3.77)% 11.85% 10.89% 6.35%* 23.11% (5.45)%
Ratios/Supplemental Data
Net assets, end of period (000)........ $ 15,829 $ 17,789 $ 14.994 $ 14,607 $ 8.686 $ 2,990
Ratios to average net assets:
Expenses (2)........................ 0.80%** 0.70%** 0.79%** 0.61% 0.60% 0.60%
Net investment income (2)........... 6.54% 6.45% 7.06% 7.34% 7.57% 6.74%
Portfolio turnover..................... 9.22% 23.75% 34.52% 44.46% 84.74% 93.73%
</TABLE>
(1) Not annualized for periods less than one year.
(2) Annualized for periods less than one year.
+ 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 1.09%, 1.15%,
1.42%, 1.63%, 2.59%, and 3.60 for the six months ended May 31, 1999 and
the years ended November 30, 1998, 1997, 1996, 1995 and 1994,
respectively.
* Fund commenced operations on December 1, 1993.
** Includes fees paid indirectly of less than 0.01% of average net assets for
the six months ended May 31, 1999 and 0.01% of average net assets for 1998
and 1997.
See Notes to Financial Statements.
<PAGE>
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
<PAGE>
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 $1,027, $464, and $401, 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 $0, $18,703
and $3,039, respectively.
Lebenthal & Co., Inc. retained commissions of $81,843 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, 1999, the
Distributor voluntarily waived fees of $11,889, $21,118 and $15,197 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.
<PAGE>
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
4. Capital Stock
At May 31, 1999, there were 20,000,000,000 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
Six Months Ended Year Ended
May 31, 1999 November 30, 1998
------------------------------------------ ------------------------------------------
Shares Amount Shares Amount
-------------------- -------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
Sold............................. 933,625 $ 7,825,286 2,792,372 $ 23,568,425
Issued as reinvestment of
dividends ..................... 545,306 4,582,067 731,001 6,165,292
Redeemed......................... (914,263) (7,664,599) (2,338,936) (19,743,010)
-------------- ------------- ------------- -------------
Net increase..................... 564,668 $ 4,742,754 1,184,437 $ 9,990,707
============== ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
Lebenthal New York Municipal Bond Fund-- Lebenthal New York Municipal Bond Fund--
Class B Class B
Six Months Ended Year Ended
May 31, 1999 November 30, 1998*
------------------------------------------ ------------------------------------------
Shares Amount Shares Amount
-------------------- -------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
Sold............................. 64,133 $ 538,601 329,526 $ 2,789,840
Issued as reinvestment of
dividends ..................... 8,894 74,772 3,624 30,740
Redeemed......................... (8,303) (69,478) (5,087) (43,493)
-------------- ------------- ------------- -------------
Net increase..................... 64,724 $ 543,895 328,063 $ 2,777,087
============== ============= ============= =============
</TABLE>
* Lebenthal New York Municipal Bond Fund--Class B commenced operations on
December 3, 1997.
<TABLE>
<CAPTION>
Lebenthal New Jersey Municipal Bond Fund Lebenthal New Jersey Municipal Bond Fund
Six Months Ended Year Ended
May 31, 1999 November 30, 1998
------------------------------------------ ------------------------------------------
Shares Amount Shares Amount
-------------------- -------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
Sold............................. 152,376 $ 1,091,370 494,730 $ 3,512,395
Issued as reinvestment of
dividends ..................... 26,479 189,720 45,998 325,833
Redeemed......................... (79,133) (565,459) (162,955) (1,153,523)
-------------- ------------- ------------- -------------
Net increase..................... 99,722 $ 715,631 377,773 $ 2,684,705
============== ============= ============= =============
</TABLE>
<PAGE>
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
Capital Stock (Continued)
<TABLE>
<CAPTION>
Lebenthal Taxable Municipal Bond Fund Lebenthal Taxable Municipal Bond Fund
Six Months Ended Year Ended
May 31, 1999 November 30, 1998
------------------------------------------ ------------------------------------------
Shares Amount Shares Amount
-------------------- -------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
Sold............................. 154,041 $ 1,163,834 558,753 $ 4,254,162
Issued as reinvestment of
dividends 51,114 384,463 93,338 706,972
Redeemed......................... (307,439) (2,306,423) (385,439) (2,909,523)
-------------- ------------- ------------- -------------
Net increase/(decrease).......... (102,284) $ (758,126) 266,652 $ 2,051,611
============== ============= ============= =============
</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 $37,475,700,
$2,868,368 and $1,304,593, respectively. Sales of investment securities for the
New York Bond Fund, the New Jersey Bond Fund, and the Taxable Bond Fund, other
than short term obligations, were $34,407,215, $2,193,888 and $2,225,862,
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>
- --------------------------------------------------------------------------------
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
LEBENTHAL
120 Broadway, New York, NY 10271
(212) 425-6116
Outside of NYC 1-800-221-582228
