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LEBENTHAL
FUNDS, INC.
Semi-Annual Report
May 31, 2000
[GRAPHIC OMITTED]
LEBENTHAL
THE WORKHORSE OF INVESTMENTS.
<PAGE>
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LEBENTHAL 120 BROADWAY, NEW YORK, NY 10271
FUNDS, INC. 212-425-6116
OUTSIDE NYC TOLL FREE 1-800-221-5822
================================================================================
Dear Shareholder:
For the twelve months ended May 31, 2000, Lipper Analytical Services, Inc.
(Lipper) ranked the $125.4 million Lebenthal New York Fund (class A shares) #70
of the #104 NY funds listed as being peer funds. For the twelve months ended May
31, 2000, Lipper ranked the $4.0 million Lebenthal New York Fund (class B
shares) #82 of the 104 NY peer funds. For the three years ended May 31, 2000,
Lipper ranked the NY Fund (class A shares) #19 out of 92 peer funds. For the
five years ended May 31, 2000, Lipper ranked the NY Fund (class A shares) #5 out
of 82 peer funds.
For the twelve months ended May 31, 2000, Lipper ranked (a) the $8.2 million
Lebenthal New Jersey Fund #40 of 59 New Jersey funds listed as being peer funds
and (b) the $12.3 million Lebenthal Taxable Municipal Fund #132 of 173 taxable
funds listed as being peer funds. For the three years ended May 31, 2000, Lipper
ranked (a) the New Jersey Fund 13 of 52 New Jersey funds listed as being peer
funds and (b) the Taxable Municipal Fund 6 out of 135 taxable funds listed as
being peer funds. For the five years ended May 31, 2000, Lipper ranked (a) the
New Jersey Fund #2 of 43 New Jersey funds listed as being peer funds and (b) the
Taxable Municipal Fund #3 out of 110 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,
2000, were (3.06)% for the New York Fund A shares, (3.74)% for the New York Fund
B shares, (3.82)% for the New Jersey Fund, and (0.24)% for the Taxable Municipal
Bond Fund. (Numbers in parentheses are negative.) 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, 1999, reinvested the monthly dividends, and
sold on May 31, 2000, would have offset the full sales charge and received
$925.70 from the New York Fund A shares, $916.70 from New York Fund B shares,
$918.50 from the New Jersey Fund, and $952.70 from the Taxable Municipal Fund.
The total return statistics of the Lebenthal funds for the three years ended May
31, 2000, were 11.62% for the New York Fund, 11.20% for the New Jersey Fund, and
18.66% for the Taxable Municipal Bond Fund. These figures do not reflect the
maximum 4.5% sales charge. Taking that into account, an investor who put $1,000
into each of the funds on June 1, 1997, reinvested the monthly dividends, and
sold on May 31, 2000, would have offset the full sales charge and still have
received $1,021.50 from the New York Fund, $1,020.20 from the New Jersey Fund,
and $1,042.60 from the Taxable Municipal Fund.
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The cumulative total return of the Lebenthal New York Fund for the five years
ended May 31, 2000, was 27.73% excluding the 4.5% maximum sales charge and
21.99% if the full 4.5% load had been paid on June 1, 1995. The cumulative total
return of the Lebenthal New Jersey Fund for the five years ended May 31, 2000,
was 27.59% excluding the 4.5% maximum sales charge and 21.85% if the full 4.5%
load had been paid on June 1, 1995. The cumulative total return of the Lebenthal
Taxable Municipal Bonds Fund for the five years ended May 31, 2000, was 38.48%
excluding the 4.5% maximum sales charge and 32.25% if the full 4.5% load had
been paid on June 1, 1995. 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, 2000, was (a)
65.64% for the Lebenthal New York Municipal Bond Fund-class A shares (inception
June 24,1991); (b) (0.59)% for the Lebenthal New York Municipal Bond Fund-class
B shares (inception December 1, 1997) (c) 19.86% for the Lebenthal New Jersey
Bond Fund (inception December 1, 1993); and (d) 40.84% for the Lebenthal Taxable
Municipal Bond Fund (inception December 1, 1993).
The SEC yields of the funds at their May 31, 2000, offering prices were: New
York (class A), 5.30%; New York (class B), 4.79%; New Jersey, 5.21%; and Taxable
Municipal, 7.20%. 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 world economic growth is slowing, we think that
fixed-income investments are attractive at current prices and yield levels. We
are particularly comfortable with the outlook for tax-free securities because of
the strong technical condition of the municipal bond market. Demand by
individuals wanting to diversify their investment portfolios in an uncertain
equity environment is currently larger than new issue supply, which is about 50%
of "normal" due to large state and local government surpluses caused by bulging
tax receipts.
If we are wrong about the interest rate outlook, the portfolios of each fund can
easily be restructured since the securities in them are readily marketable.
Currently, the Lebenthal funds are mostly fully invested in defensive
high-quality instruments that we think will perform relatively well in the
comfortable interest-rate environment we see ahead. Since we believe that bonds
represent good value for the long run at current prices and yield levels versus
other investment alternatives, we plan to remain almost always fully invested,
particularly since we have learned that successfully forecasting interest-rate
inflection points is largely impossible.
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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 future performance. 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
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<PAGE>
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LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
MAY 31, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
--------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------------ -------------- ------- --------
MUNICIPAL BONDS (89.73%)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,800,000 Cattaraugus County, New York IDA Civic Facility (Olean General Hospital
Project)-Series A, 5.25%, due 08/01/23, (LOC-Fleet National Bank) $ 1,575,090 A+
1,275,000 Dutchess County, New York IDA Civic Facility (Astor Learning Center),
5.15%, due 11/1/24, (LOC-Bank of New York) 1,089,717 AA-
2,000,000 Dutchess County, New York IDA Civic Facility (Kaatsbaan International
Dance Center), 6.125%, due 11/01/29 (a) 1,999,880 AA
1,285,000 Monroe County, New York IDA Civic Facility (DePaul Community Facility),
6.50%, due 02/01/24, (SONYMA Insured) 1,308,194 Aa1
500,000 Monroe County, New York IDA Civic Facility (Nazareth College),
5.25%, due 04/01/23, (MBIA Insured) 447,955 AAA
1,000,000 Monroe County, New York IDA (Southview Towers Project),
6.25%, due 02/01/31, (SONYMA Insured), Subject to AMT 986,330 Aa1
2,000,000 New York, New York City Housing Development Corp Multifamily Housing
Revenue-Series E, 6.25%, due 05/01/36, (SONYMA Insured) 2,002,900 Aa2 AA
1,605,000 New York State Dormitory Authority (Health Facilities)-Series A,
5.50%, due 05/15/24, (FSA Insured) 1,488,300 Aaa AAA
1,300,000 New York State Dormitory Authority (Montefiore Medical Center),
5.50%, due 08/01/38, (AMBAC/FHA Insured) 1,177,852 Aaa AAA
1,000,000 New York State Dormitory Authority (Eger Health Care & Rehab Center),
6.10%, due 8/1/37, (FHA Insured) 982,870 Aaa AAA
1,150,000 New York State Dormitory Authority (Ryan/Clinton Community Health Center),
6.10%, due 07/01/19, (SONYMA Insured) 1,151,633 Aa1
6,750,000 New York State Dormitory Authority (Highlands Living),
6.60%, due 02/01/34, (FHA Insured) 6,954,052 AA
2,330,000 New York State Dormitory Authority (Presbyterian Residential Community),
6.50%, due 08/01/34, (FHA Insured) 2,369,517 AA
3,400,000 New York State Dormitory Authority (Jewish Geriatric-Long Island),
7.35%, due 08/01/29, (FHA Insured) 3,637,966 AAA
5,190,000 New York State Dormitory Authority (Niagara Frontier Home),
6.40%, due 02/01/35, (FHA Insured) 5,234,167 AA
1,000,000 New York State Dormitory Authority (St. Lukes Home Residential Health),
6.375%, due 08/01/35, (FHA Insured) 1,007,140 AA
3,400,000 New York State Dormitory Authority (Nottingham Retirement Community),
6.125%, due 07/01/25, (SONYMA Insured) 3,356,888 Aa1
4,755,000 New York State Dormitory Authority (Geneva Nursing Home),
6.20%, due 08/01/35, (FHA Insured) (b) 4,771,405 AA
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
--------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------------ -------------- ------- --------
MUNICIPAL BONDS (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 5,750,000 New York State Dormitory Authority (Nursing Home-St. Johns Health),
6.25%, due 02/01/36, (FHA Insured) $ 5,790,767 AA
2,730,000 New York State Dormitory Authority (Jewish Home of Central NY),
6.25%, due 07/01/25, (LOC-Onbank & Trust Co.) 2,748,728 Aaa
2,400,000 New York State Dormitory Authority (Nursing Home),
6.125%, due 02/01/36, (FHA Insured) 2,371,968 AAA
6,200,000 New York State Dormitory Authority (Methodist Hospital)-Series A,
6.05%, due 02/01/34, (AMBAC/FHA Insured) 6,145,626 Aaa AAA
750,000 New York State Dormitory Authority (Grace Manor Health Care Facility),
6.15%, due 07/01/18, (SONYMA Insured) 755,647 Aa1
4,670,000 New York State Dormitory Authority (Nursing Home-Menorah Campus),
6.10%, due 02/01/37, (FHA Insured) 4,624,934 AAA
700,000 New York State Dormitory Authority (Millard Fillmore Hospital),
5.375%, due 02/01/32, (AMBAC/FHA Insured) 621,054 Aaa AAA
1,000,000 New York State Dormitory Authority (Nursing Home-Rosalind & Joseph),
5.70%, due 02/01/37, (AMBAC/FHA Insured) 929,750 Aaa AAA
1,500,000 New York State Dormitory Authority (Hunts Point Multi-Service Center),
5.625%, due 07/01/22, (SONYMA Insured) 1,396,920 Aa1
2,400,000 New York State Dormitory Authority (Niagara Lutheran Development)-
Nursing Home, 5.60%, due 08/01/37, (MBIA/FHA Insured) 2,211,648 Aaa AAA
500,000 New York State Dormitory Authority (Saint Barnabas Hospital),
5.45%, due 08/01/35, (AMBAC/FHA Insured) 447,185 Aaa AAA
1,000,000 New York State Dormitory Authority (FHA-Nursing Home-Center for
Nursing), 5.55%, due 08/01/37, (FHA Insured) 900,860 AA
1,500,000 New York State Dormitory Authority (Menorah Home & Hospital)
5.10%, due 08/01/28, (AMBAC/FHA Insured) 1,284,225 Aaa AAA
950,000 New York State Dormitory Authority (Brooklyn Hospital Center),
5.15%, due 02/1/2029, (AMBAC/FHA Insured) 814,045 Aaa
270,000 New York State Energy Research & Development Authority-
Electric Facilities-(Long Island Lighting), Unrefunded Balance,
7.15%, due 02/01/22, Subject to AMT 280,546 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), Subject to AMT 1,039,750 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) 517,885 Aaa AAA
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
--------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------------ -------------- ------- --------
<C> <S> <C> <C> <C>
$ 3,400,000 New York State Housing Finance Agency (Phillips Village Project)-
Series A, 7.75%, due 08/15/17, (FHA/SONYMA Insured) $ 3,601,314 A2
1,500,000 New York State Housing Finance Agency (Insured-Multifamily Mortgage)-
Series C, 6.50%, due 08/15/24, (FHA Insured) 1,534,035 Aa2 AAA
1,990,000 New York State Housing Finance Agency (Housing Project Mortgage)-
Series A, 6.125%, due 11/01/20, (FSA Insured) 1,992,965 Aaa AAA
2,000,000 New York State Housing Finance Agency (Multifamily Housing)-
Series D, 6.10%, due 11/15/36, (FHA Insured) 1,959,820 AAA
1,460,000 New York State Housing Finance Agency (Hospital & Health Care)-
Series A, 5.15%, due 11/01/16 1,339,170 Aaa AAA
60,000 New York State Medical Care Facilities Finance Agency,
7.30%, due 02/15/21 62,539 A3
6,750,000 New York State Medical Care Facilities Finance Agency-Series B,
6.60%, due 08/15/34, (FHA Insured) 6,954,728 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) 2,550,090 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) 7,099,078 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) 5,050,800 Aa2 AA
1,750,000 New York State Medical Care Facilities Finance Agency
Prerefunded, Series D, 6.60%, due 02/15/31, (FHA Insured) 1,851,413 AAA
1,000,000 New York State Urban Development Corp, (Senior Lien Corp.),
5.50%, due 07/01/26, (HUD Insured) 923,320 Aaa AAA
450,000 Oneida County New York Industrial Development Agency, (Mohawk Valley
Handicapped Service), 5.30%, due 03/15/19, (ACA Insured) 398,804 A
3,200,000 Oswego County New York Development Agency (Seneca Hill Project)-
Series A, 5.65%, due 08/01/37, (FHA Insured) 2,928,800 AA
595,000 Oswego County New York Development Agency, (Saint Luke Residential
Health)-Series A, 5.40%, due 02/01/38, (FHA Insured) 520,917 AAA
1,000,000 Otsego County New York Development Agency (Bassett Healthcare
Project B), 5.375%, due 11/01/20, (MBIA Insured) 909,430 Aaa AAA
2,200,000 Syracuse New York Housing Authority (Loretto Residential Health)-
Series A, 5.80%, due 08/01/37, (FHA Insured) 2,076,162 AAA
--------------
Total Municipal Bonds (Cost $116,611,235) 116,176,779
==============
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
--------------------
Value Standard
Shares (Note 1) Moody's & Poor's
------------ -------------- ------- --------
CLOSED-END FUNDS (6.60%)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 458,932 Muniholdings New York Insured Fund Incorporated $ 5,134,302
38,600 Muniholdings New York Insured Fund IV, Incorporated 468,025
26,600 Muniyield New York Insured Fund 294,262
14,100 Nuveen New York Performance Plus 182,419
84,260 Nuveen New York Quality Income Municipal Fund 1,100,646
29,800 Nuveen New York Select Quality Municipal Fund 385,538
22,000 Van Kampen New York Quality Muni Trust 291,500
46,400 Van Kampen Trust Investment Grade New York Munis 684,400
--------------
Total Closed-End Funds (Cost $9,351,358) 8,541,092
--------------
<CAPTION>
Face
Amount
------------
COMMERCIAL PAPER (0.64%)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
837,000 Ford Motor Credit Corporation, 6.54% due 6/05/00 837,000
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Total Commercial Paper (Cost $837,000) 837,000
--------------
Total Investments (96.97%)(Cost $126,799,593)+ 125,554,871
Cash and Other Assets, Net of Liabilities (3.03%) 3,923,450
--------------
Net Assets (100.00%) $ 129,478,321
==============
</TABLE>
(a) When-issued security.
(b) Security has been segregated at the custodian bank for a when-issued
security.
+ Aggregate cost for federal income tax purposes is identical.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $1,887,812 and $3,132,534 respectively,
resulting in net unrealized depreciation of $1,244,722.
KEY:
AMBAC = Ambac Indemnity Corporation
AMT = Alternative Minimum Tax
ACA = American Capital Access
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>
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LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
--------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------------ -------------- ------- --------
MUNICIPAL BONDS (89.10%)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 125,000 Cape May County, New Jersey Industrial Pollution Control Financing
Authority, Atlantic City Electric Company Project A, 7.20%, due 11/01/29,
(MBIA Insured), Subject to AMT $ 134,529 Aaa AAA
70,000 Essex County, New Jersey Import Authority Orange School District-
Series A, 6.95%, due 07/01/14, (MBIA Insured) 76,689 Aaa AAA
100,000 Irvington, New Jersey Housing & Mortgage Finance Authority,
6.50%, due 02/01/24, (FHA Insured) 101,354 AAA
300,000 Middlesex County, New Jersey Import Authority,
5.90%, due 9/15/21 298,530 Aa3 A+
25,000 New Jersey Economic Development Authority, Economic Development
Revenue, Refunding-Heath VLJ-96 Project, 6.00%, due 05/01/16,
(LOC-First Union National Bank) 25,971 A+
175,000 New Jersey Economic Development Authority, Economic Development
Revenue, Unrefunded Balance-Heath VLG-96 Project,
6.00%, due 05/01/16, (LOC-First Union National Bank) 174,989 A+
100,000 New Jersey Economic Development Authority, Economic Development
Revenue, American Airlines Inc. Project, 7.10%, due 11/01/31 100,682 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) 249,870 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) 153,682 Aa3
150,000 New Jersey Economic Development Authority, Economic Development
Revenue, W.Y. Urban Holding Company, 6.50%, due 06/01/15,
(LOC-Fleet Bank), Subject to AMT 154,053 A+
100,000 New Jersey Economic Development Authority, Pollution Control Revenue,
PSE&G Co. Project, 6.40%, due 05/01/32, (MBIA Insured), Subject to AMT 101,688 Aaa AAA
100,000 New Jersey Economic Development Authority, N. J. American Water Co.
Project A, 6.875%, due 11/01/34, (FGIC Insured), Subject to AMT 106,287 Aaa AAA
85,000 New Jersey Health Care Facilities Financing Authority, Irvington General
Hospital Issue, 6.40%, due 08/01/25, (FHA Insured) 90,175 AAA
125,000 New Jersey Health Care Facilities Financing Authority-General
Hospital Center at Passaic, 6.75%, due 07/01/19, (FSA Insured) 137,089 Aaa AAA
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
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LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
--------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------------ -------------- ------- --------
MUNICIPAL BONDS (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 100,000 New Jersey Health Care Facilities Financing Authority, Monmouth Medical
Center Issue-Series C, 6.25%, due 07/01/24, (FSA Insured) $ 105,624 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) 148,624 AAA
25,000 New Jersey Health Care Facilities Financing Authority, Capital Health
System Obligation Group, 5.25%, due 07/01/27 17,930 Baa2 BBB-
400,000 New Jersey Health Care Facilities Financing Authority, Hackensack
University Medical Center, 6.00% due 01/01/25 382,668 A3
250,000 New Jersey Health Care Facilities Financing Authority, Palisades Medical
Center Obligation Group, 5.25%, due 07/01/28, (ACA Insured) 206,967 Baa3 A
100,000 New Jersey Economic Development Authority, Economic Growth-Series D,
6.55%, due 08/01/14, (LOC-Fleet Bank), Subject to AMT 103,070 A+
290,000 New Jersey State Education Facilities Authority, Monmouth University-
Series C, 5.40%, due 07/01/06 286,442 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) 100,195 Aaa AAA
150,000 New Jersey State Education Facilities Authority, Trenton State
College-Series E, 6.00%, due 07/01/19, (AMBAC Insured) 150,906 Aaa AAA
50,000 New Jersey State Higher Education Assistance Authority, Student Loan-
Series A, 5.30%, due 06/01/17, (AMBAC Insured), Subject to AMT 46,131 Aaa AAA
250,000 New Jersey State Highway Authority, Garden State Parkway,
5.625%, due 01/01/30 238,407 A1 AA-
125,000 New Jersey State Housing & Mortgage Finance Agency, MHRB
Refunding-Presidential Plaza, 7.00%, due 05/01/30, (FHA Insured) 130,037 AAA
300,000 New Jersey State Housing & Mortgage Finance Agency, MHRB-
Series A, 6.05%, due 11/01/20, (AMBAC/FHA Insured) 294,129 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 97,926 Aaa AAA
25,000 New Jersey State Housing & Mortgage Finance Agency, MHRB -
Series A, 5.65%, due 05/01/40, (AMBAC Insured), Subject to AMT 22,670 Aaa AAA
125,000 New Jersey State Housing & Mortgage Finance Agency,
Series A, 6.95%, due 11/01/13, (HUD Section 8 Insured) 130,733 A+
300,000 New Jersey State Housing & Mortgage Finance Agency, MHRB
Series B, 6.15%, due 11/1/20, (FSA Insured) 301,494 Aaa AAA
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
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LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
--------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------------ -------------- ------- --------
MUNICIPAL BONDS (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 150,000 New Jersey State Housing & Mortgage Finance Agency, Home Buyers-
Series O, 6.35%, due 10/01/27, (MBIA Insured), Subject to AMT $ 150,681 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 349,636 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) 148,207 AAA
800,000 Port Authority of New York & New Jersey Special Obligation, JFK
International Air Terminal-Series 6, 5.75%, due 12/01/22, Subject to AMT 767,864 Aaa AAA
800,000 Port Authority of New York & New Jersey, One Hundred Ninth
MBIA-IBC, 5.375%, due 01/15/32, (MBIA Insured) 724,136 Aaa AAA
300,000 Puerto Rico AES Project, 6.625%, due 06/01/26 301,743 Baa2 BBB
70,000 Puerto Rico Housing Bank & Finance Agency, Single Family Mortgage,
Affordable Housing Mortgage-Portfolio I, 6.25%, due 04/01/29,
(GNMA/FNMA/FHLMC Insured), Subject to AMT 68,972 Aaa AAA
150,000 Rancocas Valley New Jersey Regional High School District
General Obligation, 5.30%, due 02/01/21, (FGIC Insured) 138,680 Aaa AAA
--------------
Total Municipal Bonds (Cost $7,336,849) 7,319,460
--------------
<CAPTION>
Shares
------------
CLOSED-END FUNDS (9.32%)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
33,800 Muniholdings New Jersey Insured Fund IV 397,150
30,514 Muniyield New Jersey Fund 368,075
--------------
Total Closed-End Funds (Cost $844,680) 765,225
--------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
--------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------------ -------------- ------- --------
COMMERCIAL PAPER (3.01%)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
247,400 General Electric Capital Corporation, 6.35% due 6/1/00 $ 247,400
--------------
Total Commercial Paper (Cost $247,400) 247,400
--------------
Total Investments (101.43%)(Cost $8,428,929) + 8,332,085
Liabilities in Excess of Cash and Other Assets (-1.43%) (117,334)
--------------
Net Assets (100.00%) $ 8,214,751
==============
</TABLE>
+ Aggregate cost for federal income tax purposes is identical.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $129,440 and $226,284 respectively,
resulting in net unrealized depreciation of $96,844.
KEY
ACA = American Capital Access
AMBAC = Ambac Indemnity Corporation
AMT = Alternative Minimum Tax
FGIC = Financial Guaranty Insurance Corporation
FHA = Federal Housing Administration
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
FSA = Financial Security Assurance, Inc.
GNMA = Government National Mortgage Association
HUD = Department of Housing and Urban Development
LOC = Letter of Credit
MBIA = Municipal Bond Insurance Association
MHRB = Multi-family Housing Revenue Bond
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
--------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------------ -------------- ------- --------
MUNICIPAL BONDS (95.05%)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 150,000 All Saints Health System, 9.00%, due 08/15/24, (MBIA Insured) $ 157,189 Aaa AAA
385,000 Baltimore, Maryland-Series B, General Obligation,
7.90%, due 10/15/16, (FGIC Insured) 379,741 Aaa AAA
1,100,000 Bastrop, Texas Economic Development Corporation, Sales Tax,
8.00%, due 08/15/16 1,072,577 BBB+
100,000 Buffalo, New York-Series F, 9.05%, due 02/01/15, (AMBAC Insured) 102,388 Aaa AAA
240,000 California Housing Finance Agency, Multi-family Housing-Series C,
8.10%, due 02/01/37, (AMBAC Insured) 232,015 Aaa AAA
2,000,000 Compton, California Community Redevelopment Agency-Series C,
Tax Allocation, 0.00%*, due 08/01/22, (FSA Insured) 320,520 Aaa AAA
150,000 Connecticut State Health and Educational Facilities Authority, Maefair
Health Care, 9.20%, due 11/01/24 163,840 A1 AA
150,000 Connecticut State Health and Educational Facilities Authority, Shady Knoll
Center, 8.90%, due 11/01/24 158,026 A1 AA
255,000 Connecticut State Housing Finance Authority-Series F,
9.25%, due 05/15/27 268,635 Aa2 AA
200,000 Connecticut State Housing Finance Authority-Series G,
7.625%, due 05/15/21 187,512 Aa2 AA
100,000 Connecticut State Development Authority-Sub Series B1,
8.50%, due 08/15/14 101,590 A+
125,000 Conyers, Georgia Water & Sewer-Series B,
8.75%, due 07/01/15, (AMBAC Insured) 132,517 Aaa AAA
250,000 Cuyahoga County, Ohio Economic Development, Gateway Arena Project-
Series A, 8.625%, due 06/01/22 255,110
500,000 Detroit, Michigan Downtown Development Authority Tax Increment
Revenue, Taxable-Dev Area No 1 Project-B, 4.40%, due 07/01/28
(MBIA Insured) 420,085 Aaa AAA
200,000 Florida Housing Finance Agency, Taxable Housing Mariner Club-K-2,
8.25%, due 09/01/15, (AMBAC Insured) 196,510 Aaa AAA
1,230,000 Harrisburg, Pennsylvania-Series A, General Obligation,
0.00%*, due 04/01/18, (AMBAC Insured) 290,305 Aaa AAA
1,165,000 Harrisburg, Pennsylvania-Series A, General Obligation,
0.00%*, due 04/01/19, (AMBAC Insured) 253,551 Aaa AAA
350,000 Harrison County, Mississippi-Series A, General Obligation,
7.75%, due 04/01/16, (MBIA Insured) 340,028 Aaa AAA
150,000 Idaho Housing Agency, 8.50%, due 07/01/09, (HUD Section 8 Insured) 150,825 A
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
--------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------------ -------------- ------- --------
MUNICIPAL BONDS (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 150,000 Illinois Housing Development Authority, Affordable Housing Project,
8.64%, due 12/01/21, (AMBAC Insured) $ 152,610 Aaa AAA
2,180,000 Kern County, California Pension Obligation,
0.00%*, due 08/15/18, (MBIA Insured) 503,754 Aaa AAA
325,000 Maryland State Community Development Administration-Series F,
9.10%, due 05/15/10, (MHF Insured) 335,605 Aa3
150,000 Memorial Health System, Illinois, 8.375%, due 10/01/20, (MBIA Insured) 151,052 Aaa AAA
200,000 Michigan State Housing Development Authority-Series A,
8.30%, due 11/01/15, (AMBAC Insured) 200,118 Aaa AAA
50,000 Minnesota State Housing Finance Agency, Rental Housing-Series B,
8.00%, due 02/01/18 48,755 AA
40,000 Minnesota State Housing Finance Agency, Single Family Mortgage-
Series G, 8.05%, due 01/01/12 38,862 Aa2 AA+
600,000 Mississippi Hospital Equipment and Facilities Authority, Wesley Health
Systems-Series A, 9.10%, due 04/01/06 634,746 AAA
55,000 New Hampshire State Housing and Finance Authority, Single Family-
Series C, 9.40%, due 07/01/14 55,179 Aa2
240,000 New Jersey State Housing and Mortgage Finance Agency, Rental Housing-
Series E, 8.95%, due 11/01/12 244,810 A+
680,000 New York State Dormitory Authority, Highland Hospital-Series B,
7.45%, due 08/01/35, (MBIA/FHA Insured) 639,948 Aaa AAA
250,000 New York State Environmental Facilities-Series A,
9.625%, due 03/15/21 263,775 Baa1 AAA
300,000 New York State Housing Finance Agency, Multi-family Housing-Series B,
8.25%, due 05/15/35, (FHA Insured) 293,484 AAA
350,000 New York State Housing Finance Agency, Multi-family Housing-Series C,
8.11%, due 11/15/38, (FHA Insured) 336,956 AAA
110,000 New York State Housing Finance Agency, Service Contract Obligation -
Series B, 8.60%, due 03/15/04 113,397 Baa1 A
100,000 Pittsburgh, Pennsylvania Urban Redevelopment Authority,
9.07%, due 09/01/14, (FSA Insured) 106,554 Aaa AAA
300,000 Sacramento County, California-Series A, 7.68%, due 08/15/21,
(MBIA Insured) 287,619 Aaa AAA
120,000 Southeastern Pennsylvania Transit Authority-Series B,
8.75%, due 03/01/20, (FGIC Insured) 123,108 Aaa AAA
300,000 Tampa, Florida Sports Authority, Hillsboro Arena Project,
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings
--------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
------------ -------------- ------- --------
MUNICIPAL BONDS (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 300,000 Texas State, Veterans Housing, General Obligation,
7.35%,due 12/01/21 $ 272,568 Aa1 AA
375,000 Texas State Department of Housing and Community Affairs
Series C-1, 7.76%, due 09/01/17, (MBIA Insured) 363,660 Aaa AAA
500,000 Virginia State Housing Development Authority Commonwealth Mortgage,
7.80%, due 07/01/17 487,045 Aa1 AA+
350,000 Virginia State Housing Development Authority Commonwealth Mortgage,
(G.O. of the Authority) 8.375%, due 10/01/20 347,533 Aa1 AA+
175,000 Wisconsin Housing & Economic Development Authority-Series H,
7.875%, due 03/01/26 170,062 Aa2 AA
--------------
Total Municipal Bonds (Cost $11,989,000) 11,645,671
--------------
<CAPTION>
Shares
------------
CLOSED-END FUNDS (3.89%)
------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
63,000 Hyperion Total Return Fund Incorporated 476,437
--------------
Total Closed-End Funds (Cost $509,198) 476,437
--------------
Total Investments (98.94%)(Cost$12,498,198)+ 12,122,108
Cash and Other Assets, Net of Liabilities (1.06%) 129,543
--------------
Net Assets (100.00%) $ 12,251,651
==============
</TABLE>
+ Aggregate cost for federal income tax purposes is identical.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $141,206 and $517,297 respectively,
resulting in net unrealized depreciation of $376,089.
* Zero Coupon Bond
KEY:
AMBAC = Ambac Indemnity Corporation
AMT = Alternative Minimum Tax
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, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Lebenthal Lebenthal Lebenthal
New York New Jersey Taxable
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS
Investment in securities at value (cost $126,799,593, $8,428,929
and $12,498,198) ............................................ $ 125,554,871 $ 8,332,085 $ 12,122,109
Cash ........................................................... 38 16,285 --
Receivables:
Securities sold .......................................... 1,891,673 -- --
Capital shares sold ...................................... 560,755 52,204 2,444
Interest and Dividends ................................... 2,171,670 131,961 205,156
Due from Manager ......................................... -- 31,181 26,598
------------- ------------- -------------
Total assets ........................................... 130,179,007 8,563,716 12,356,307
------------- ------------- -------------
LIABILITIES
Payables:
Securities purchased ..................................... 69,346 299,076 --
Capital shares redeemed .................................. 34,901 55 --
Dividends declared ....................................... 420,403 26,476 --
Distribution fee payable (Note 3) ........................ 34,280 -- 54,783
Management fee payable (Note 2) .......................... 24,945 1,755 2,595
Administration fee payable ............................... 23,231 1,337 3,486
Due to Custodian ......................................... -- -- 21,637
Accrued expenses and other liabilities ......................... 93,580 20,266 22,155
------------- ------------- -------------
Total liabilities ...................................... 700,686 348,965 104,656
------------- ------------- -------------
NET ASSETS ..................................................... 129,478,321 8,214,751 12,251,651
============= ============= =============
NET ASSETS CONSIST OF:
Par value ...................................................... 17,100 1,279 1,839
Paid in capital ................................................ 134,537,020 8,918,316 13,130,242
Undistributed investment income-net ............................ 8,791 (152) --
Accumulated net realized loss on investments ................... (3,839,868) (607,848) (504,341)
Unrealized depreciation on investments--net .................... (1,244,722) (96,844) (376,089)
------------- ------------- -------------
Total net assets ....................................... $ 129,478,321 $ 8,214,751 $ 12,251,651
============= ============= =============
CLASS A
Net Assets ..................................................... $ 125,435,356 $ 8,214,751 $ 12,251,651
Shares outstanding (Note 4) .................................... 16,566,733 1,278,526 1,838,915
Net asset value, and redemption price per share ................ $ 7.57 $ 6.43 $ 6.66
Maximum offering price per share* .............................. $ 7.93 $ 6.73 $ 6.97
CLASS B
Net Assets ..................................................... $ 4,042,965 $ -- $ --
Shares outstanding (Note 4) .................................... 533,683 -- --
Net asset value, and redemption price per share** .............. $ 7.58 $ -- $ --
</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, 2000 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Lebenthal Lebenthal Lebenthal
New York New Jersey Taxable
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest .......................................... $ 3,801,533 $ 231,246 $ 486,809
Dividends ......................................... 356,084 26,263 53,541
----------- ----------- -----------
Total income ................................... 4,157,617 257,509 540,350
----------- ----------- -----------
Expenses:
Management fee (Note 2) ........................... 151,643 10,615 16,272
Distribution fee:
Class A (Note 3) ............................... 161,118 10,615 16,272
Class B (Note 3) ............................... 19,994 -- --
Shareholder servicing fees:
Class A ........................................ 40,326 16,960 16,016
Class B ........................................ 13,772 -- --
Administration fee ................................ 74,352 4,483 7,107
Printing .......................................... 13,222 944 1,398
Custodian fee ..................................... 10,961 2,494 2,690
Interest .......................................... -- -- --
Legal and compliance fees ......................... 38,551 211 4,598
Audit and accounting fees ......................... 32,974 15,127 14,742
Directors' fees ................................... 3,820 248 358
Registration fees:
Class A ........................................ 230 463 2,234
Class B ........................................ 4,262 -- --
Amortization of organization expenses (Note 1) .... -- -- --
Other ............................................. 1,669 1,492 3,705
----------- ----------- -----------
Total expenses ................................. 566,894 63,652 85,392
Less: Reimbursement of expenses by Manager (Note 2) -- (20,682) (10,296)
Fees waived by Distributor (Note 3) ............ (17,229) (10,615) (16,272)
Fees paid indirectly (Note 1) .................. (760) (508) (246)
----------- ----------- -----------
Net expenses ...................................... 548,905 31,847 58,578
----------- ----------- -----------
Net investment income ................................ 3,608,712 225,662 481,772
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments ..................... (2,228,694) (197,871) (32,317)
Change in unrealized appreciation (depreciation) of
investments ....................................... 1,021,721 81,192 (250,336)
----------- ----------- -----------
Net realized and unrealized loss on investments ...... (1,206,973) (116,679) (282,653)
----------- ----------- -----------
Increase in net assets from operations ............... $ 2,401,739 $ 108,983 $ 199,119
=========== =========== ===========
</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, 2000 November 30, May 31, 2000 November 30,
(Unaudited) 1999 (Unaudited) 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income ........ $ 3,608,712 $ 7,413,164 $ 225,662 $ 454,352
Net realized loss on
investments ................ (2,228,694) (1,610,400) (197,871) (182,005)
Change in unrealized
appreciation ............... 1,021,721 (12,965,286) 81,192 (755,797)
------------- ------------- ------------- -------------
Increase (decrease) in net assets
from operations .............. 2,401,739 (7,162,522) 108,983 (483,450)
Dividends from net investment
income
Class A shares ............. (3,515,070) (7,273,696)* (225,662) (454,352)*
Class B shares ............. (93,916) (139,468)* -- --
Dividends from net realized gain
on investments
Class A shares ............. -- (1,761,311) -- --
Class B shares ............. -- (34,360) -- --
Capital share transactions
(Note 4) ..................... (8,080,648) 4,663,837 (579,134) 806,223
------------- ------------- ------------- -------------
Total decrease ............. (9,287,895) (11,707,520) (695,813) (131,579)
Net assets:
Beginning of period .......... 138,766,216 150,473,736 8,910,564 9,042,143
------------- ------------- ------------- -------------
End of period (1) ............ $ 129,478,321 $ 138,766,216 $ 8,214,751 $ 8,910,564
============= ============= ============= =============
(1) Includes Undistributed Net
Investment Income (Loss) ..... $ 8,791 $ 9,065 $ (152) $ (152)
============= ============= ============= =============
</TABLE>
(Unaudited Information)
* 98.47% and 98.39% 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, 2000 November 30,
(Unaudited) 1999
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income ........................ $ 481,772 $ 1,056,175
Net realized loss on investments ............. (32,317) (152,602)
Change in unrealized appreciation ............ (250,336) (1,866,190)
------------ ------------
Increase (decrease) in net assets from operations 199,119 (962,617)
Dividends from net investment income ............ (481,772) (1,056,175)
Capital share transactions (Note 4) ............. (952,331) (2,283,652)
------------ ------------
Total decrease ............................. (1,234,984) (4,302,444)
Net assets:
Beginning of period .......................... 13,486,635 17,789,079
------------ ------------
End of period (1) ............................ $ 12,251,651 $ 13,486,635
============ ============
(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, 2000 ---------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
-------- -------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period . $ 7.64 $ 8.53 $ 8.32 $ 8.09 $ 7.99 $ 6.84
-------- -------- --------- --------- -------- --------
Income from investment operations:
Net investment income ................ 0.21 0.41 0.42 0.42 0.41 0.43
Net realized and unrealized
gain (loss) on investments ........ (0.07) (0.79) 0.21 0.23 0.10 1.15
-------- -------- --------- --------- -------- --------
Total from investment operations ..... 0.14 (0.38) 0.63 0.65 0.51 1.58
-------- -------- --------- --------- -------- --------
Less distributions:
Dividends from net investment
income ............................ (0.21) (0.41) (0.42 (0.42 (0.41) (0.43)
Distributions from net realized
gain on investments ............... 0.00 (0.10) -- -- -- --
-------- -------- --------- --------- -------- --------
Total distributions .................. (0.21) (0.51) (0.42 (0.42 (0.41) (0.43)
-------- -------- --------- --------- -------- --------
Net asset value, end of period ....... $ 7.57 $ 7.64 $ 8.53 $ 8.32 $ 8.09 $ 7.99
======== ======== ========= ========= ======== ========
Total Return (1)
(without deduction of sales load) . 1.82% (4.69)% 7.69% 8.27% 6.63%* 23.56%
Ratios/Supplemental Data
Net assets, end of period (000) ...... $125,435 $134,857 $ 147,673 $ 134,144 $122,611 $105,579
Ratios to average net assets:
Expenses (2) ...................... 0.80%** 0.76%** 0.76%** 0.89%** 1.09% 0.99%
Net investment income (2) ......... 5.45% 5.00% 4.92% 5.16% 5.17% 5.63%
Portfolio turnover ................... 17.61% 59.91% 66.04% 60.80% 45.92% 148.88%
</TABLE>
(1) Not annualized for periods less than one year.
(2) Annualized for periods less than one year.
* 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
Ended Year Ended November 30,
May 31, 2000 -------------------------
(Unaudited) 1999 1998*
---------- --------- ---------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ................. $ 7.64 $ 8.54 $ 8.34
--------- --------- ---------
Income from investment operations:
Net investment income ................................ 0.18 0.34 0.33
Net realized and unrealized gain (loss) on investments (0.06) (0.80) 0.20
--------- --------- ---------
Total from investment operations ..................... 0.12 (0.46) 0.53
--------- --------- ---------
Less distributions:
Dividends from net investment income ................. (0.18) (0.34) (0.33)
Distributions from net realized gain on investments .. 0.00 (0.10) --
--------- --------- ---------
Total distributions .................................. (0.18) (0.44) (0.33)
--------- --------- ---------
Net asset value, end of period ....................... $ 7.58 $ 7.64 $ 8.54
========= ========= =========
Total Return (1)
(without deduction of sales load) ................. 1.57% (5.57)% 6.48%
Ratios/Supplemental Data
Net assets, end of period (000) ...................... $ 4,043 $ 3,909 $ 2,801
Ratios to average net assets:
Expenses++ (2) .................................... 1.55%** 1.55%** 1.55%**
Net investment income (2) ......................... 4.70% 4.21% 3.95%
Portfolio turnover ................................... 17.61% 59.91% 66.04%
</TABLE>
(1) Not annualized for periods less than one year.
(2) Annualized for periods less than one year.
* Class commenced operations on December 3, 1997.
++ If the Investment Manager had not waived fees and reimbursed expenses and
the Administrator and Distributor had waived fees, the ratio of operating
expenses to average net assets would have been 2.41%, 2.38% and 4.58% for
the six months ended May 31, 2000 and the years ended November 30, 1999
and 1998, respectively.
** Includes fees paid indirectly of less than .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, 2000 ---------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period . $ 6.51 $ 7.20 $ 6.97 $ 6.74 $ 6.70 $ 5.95
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income ................ 0.17 0.34 0.35 0.35 0.36 0.36
Net realized and unrealized
gain (loss) on investments ........ (0.08) (0.69) 0.23 0.23 0.04 0.75
--------- --------- --------- --------- --------- ---------
Total from investment operations ..... 0.09 (0.35) 0.58 0.58 0.40 1.11
--------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment
income ............................ (0.17) (0.34) (0.35) (0.35) (0.36) (0.36)
Distributions from net realized
gain on investments ............... -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions .................. (0.17) (0.34) (0.35) (0.35) (0.36) (0.36)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ....... $ 6.43 $ 6.51 $ 7.20 $ 6.97 $ 6.74 $ 6.70
========= ========= ========= ========= ========= =========
Total Return (1)
(without deduction of sales load) . 1.42% (5.07)% 8.47% 8.84% 6.18% 19.10%
Ratios/Supplemental Data
Net assets, end of period (000) ...... $ 8,215 $ 8,911 $ 9,042 $ 6,122 $ 5,182 $ 3,358
Ratios to average net assets:
Expenses+ (2) ..................... 0.75%* 0.71%* 0.60%* 0.70%* 0.63%* 0.60%
Net investment income (2) ......... 5.31% 4.84% 4.87% 5.12% 5.37% 5.64%
Portfolio turnover ................... 46.02% 52.66% 31.81% 57.19% 28.56% 61.69%
</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 1.49%, 1.45%,
1.60%, 2.57%, 3.20%, and 4.13% for the six months ended May 31, 2000 and
the years ended November 30, 1999, 1998, 1997, 1996, and 1995,
respectively, for the New Jersey Municipal Bond Fund.
* Includes fees paid indirectly of 0.01%, 0.01%, 0.02%, 0.02%, and 0.03% of
average net assets for the New Jersey Municipal Bond Fund, for 2000, 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, 2000 ----------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
------------ ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period . $ 6.81 $ 7.73 $ 7.37 $ 7.13 $ 7.22 $ 6.34
------- ------- ------- ------- ------- ------
Income from investment operations:
Net investment income ................ 0.25 0.49 0.49 0.50 0.52 0.53
Net realized and unrealized
gain (loss) on investments ........ (0.15) (0.92) 0.36 0.24 (0.09) 0.88
------- ------- ------- ------- ------- ------
Total from investment operations ..... 0.10 (0.43) 0.85 0.74 0.43 1.41
------- ------- ------- ------- ------- ------
Less distributions:
Dividends from net investment
income ............................ (0.25) (0.49) (0.49) (0.50) (0.52) (0.53)
Distributions from net realized
gain on investments ............... -- -- -- -- -- --
------- ------- ------- ------- ------- ------
Total distributions .................. (0.25) (0.49) (0.49) (0.50) (0.52) (0.53)
------- ------- ------- ------- ------- ------
Net asset value, end of period ....... $ 6.66 $ 6.81 $ 7.73 $ 7.37 $ 7.13 $ 7.22
======= ======= ======= ======= ======= ======
Total Return (1)
(without deduction of sales load) . 1.48% (5.77)% 11.85% 10.89% 6.35% 23.11%
Ratios/Supplemental Data
Net assets, end of period (000) ...... $12,252 $13,487 $17,789 $14,994 $14,607 $8,686
Ratios to average net assets:
Expenses+ (2) ..................... 0.90%* 0.82%* 0.70%* 0.79%* 0.61%* 0.60%
Net investment income (2) ......... 7.40% 6.71% 6.45% 7.06% 7.34% 7.57%
Portfolio turnover ................... 0.00% 21.12% 23.75% 34.52% 44.46% 84.74%
</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 1.30%, 1.15%,
1.15%, 1.42%, 1.63% and 2.59% for the six months ended May 31, 2000 and
the years ended November 30, 1999, 1998, 1997, 1996 and 1995,
respectively, for the Taxable Municipal Bond Fund.
* Includes fees paid indirectly of less than 0.01% of average net assets for
2000, and 0.01% of average net assets for 1999, 1998 and 1997.
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See Notes to Financial Statements.
<PAGE>
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LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
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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.
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<PAGE>
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LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
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 $760, $508, and $246, 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 Jersey Bond Fund, and
the Taxable Bond Fund amounting to $20,682 and $10,296, respectively.
Lebenthal & Co., Inc. retained commissions of $35,827 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.
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<PAGE>
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LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
3. Distribution Plan
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the Investment
Company Act of 1940, the Company and Lebenthal & Co., Inc. (the Distributor)
have entered into a Distribution Agreement. For its services under the
Distribution Agreement, the Distributor receives 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, 2000, the
Distributor voluntarily waived fees of $10,615, $16,272 and $17,229 from the New
Jersey Bond Fund, the Taxable Bond Fund, and the New York Bond Fund - Class B
shares, respectively. There were no additional expenses borne by the Company
pursuant to the Distribution Plan.
4. Capital Stock
At May 31,2000, 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 Lebenthal New York Municipal
Bond Fund-- Bond Fund--
Class A Class A
Six Months Ended Year Ended
May 31, 2000 November 30, 1999
---------------------------- ----------------------------
Shares Amount Shares Amount
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sold .............................. 542,412 $ 4,111,869 1,710,476 $ 14,032,690
Issued as reinvestment of dividends 386,383 2,932,127 944,845 7,762,044
Redeemed .......................... (2,018,542) (15,289,113) (2,303,853) (18,618,190)
------------ ------------ ------------ ------------
Net increase (decrease) ........... (1,089,747) $ (8,245,117) 351,468 $ 3,176,544
============ ============ ============ ============
<CAPTION>
Lebenthal New York Municipal Lebenthal New York Municipal
Bond Fund-- Bond Fund--
Class B Class B
Six Months Ended Year Ended
May 31, 2000 November 30, 1999
---------------------------- ----------------------------
Shares Amount Shares Amount
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sold .............................. 44,120 $ 332,686 204,461 $ 1,651,979
Issued as reinvestment of dividends 9,289 70,528 16,355 134,065
Redeemed .......................... (31,290) (238,745) (37,315) (298,751)
------------ ------------ ------------ ------------
Net increase ...................... 22,119 $ 164,469 183,501 $ 1,487,293
============ ============ ============ ============
</TABLE>
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<PAGE>
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LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
Capital Stock (Continued)
<TABLE>
<CAPTION>
Lebenthal New Jersey Municipal Lebenthal New Jersey Municipal
Bond Fund-- Bond Fund--
Six Months Ended Year Ended
May 31, 2000 November 30, 1999
------------------------------ ------------------------------
Shares Amount Shares Amount
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Sold .............................. 45,345 $ 291,511 249,427 $ 1,755,135
Issued as reinvestment of dividends 29,334 189,359 56,103 389,942
Redeemed .......................... (165,075) (1,060,004) (193,126) (1,338,854)
----------- ----------- ----------- -----------
Net increase (decrease) ........... (90,396) $ (579,134) 112,404 $ 806,223
=========== =========== =========== ===========
<CAPTION>
Lebenthal Taxable Municipal Lebenthal Taxable Municipal
Bond Fund-- Bond Fund--
Six Months Ended Year Ended
May 31, 2000 November 30, 1999
------------------------------ ------------------------------
Shares Amount Shares Amount
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Sold .............................. 59,402 $ 399,338 194,919 $ 1,451,904
Issued as reinvestment of dividends 45,757 310,160 102,506 744,150
Redeemed .......................... (245,344) (1,661,829) (618,724) (4,479,706)
----------- ----------- ----------- -----------
Net increase (decrease) ........... (140,185) $ (952,331) (321,299) $(2,283,652)
=========== =========== =========== ===========
</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 $23,142,091,
$3,851,012 and $0, 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 $34,291,687, $3,767,524, and $1,145,916, respectively.
6. Federal Income Taxes
Tax basis capital losses which may be carried forward to offset future capital
gains through November 30, 2007 amounted to $407,603 ($213,105, $14,767 and
$179,731 expiring November 30, 2001, November 30, 2004 and November 30, 2007,
respectively), $383,751 ($88,183, $223,001 and $72,567 expiring November 30,
2001, November 30, 2004 and November 30, 2007, respectively) and $1,365,181
expiring November 30, 2007 for the New Jersey Bond Fund, the Taxable Bond Fund
and the New York Bond Fund, respectively.
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<PAGE>
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LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
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.
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<PAGE>
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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, NY 10271
(212) 425-6116
OUTSIDE OF NYC 1-800-221-5822
--------------------------------
