LEBENTHAL
FUNDS, INC.
Annual Report
November 30, 1999
[GRAPHIC OMITTED]
LEBENTHAL
THE WORKHORSE OF INVESTMENTS.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL 120 Broadway, New York, NY 10271
FUNDS, INC. 212-425-6116
OUTSIDE NYC TOLL FREE 1-800-221-5822
================================================================================
- --------------------------------------------------------------------------------
Dear Shareholder:
For the twelve months ended November 30, 1999, Lipper Analytical Services, Inc.
(Lipper) ranked the $134.9 million Lebenthal New York Fund (class A shares) 85
of the 99 NY funds listed as being peer funds. For the twelve months ended
November 30, 1999, Lipper ranked the $3.9 million Lebenthal New York Fund (class
B shares) 93 of the 99 NY peer funds. For the three years ended November 30,
1999, Lipper ranked the NY Fund (class A shares) 37 out of 88 peer funds. For
the five years ended November 30, 1999, Lipper ranked the NY Fund (class A
shares) 2 out of 74 peer funds.
For the twelve months ended November 30, 1999, Lipper ranked (a) the $8.9
million Lebenthal New Jersey Fund 47 of 59 New Jersey funds listed as being peer
funds and (b) the $13.5 million Lebenthal Taxable Municipal Fund 117 of 167
taxable funds listed as being peer funds. For the three years ended November 30,
1999, Lipper ranked (a) the New Jersey Fund 9 of 49 New Jersey funds listed as
being peer funds and (b) the Taxable Municipal Fund 9 out of 132 taxable funds
listed as being peer funds. For the five years ended November 30, 1999, Lipper
ranked (a) the New Jersey Fund 4 of 39 New Jersey funds listed as being peer
funds and (b) the Taxable Municipal Fund 4 out of 97 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 November
30, 1999, were -4.69% for the New York Fund A shares, -5.57% for the New York
Fund B shares, -5.07% for the New Jersey Fund, and -5.77% 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
December 1, 1998, reinvested the monthly dividends, and sold on November 30,
1999, would have offset the full sales charge and received $912.50 from the New
York Fund A shares, $901.60 from New York Fund B shares, $909.00 from the New
Jersey Fund, and $903.00 from the Taxable Municipal Fund.
The cumulative total return statistics of the Lebenthal funds for the three
years ended November 30, 1999, were 10.67% for the New York Fund, 11.16% for the
New Jersey Fund, and 17.26% 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 December 1,1996, reinvested
the monthly dividends, and sold on November 30, 1999, would have offset the full
sales charge and still have received $1,063.40 from the New York Fund, $1,061.50
from the New Jersey Fund, and $1,119.98 from the Taxable Municipal Fund.
The cumulative total return of the Lebenthal New York Fund for the five years
ended November 30, 1999, was 40.78% excluding the 4.5% maximum sales charge and
34.45% if the full 4.5% load had been paid on December
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
1,1994. The cumulative total return of the Lebenthal New Jersey Fund for the
five years ended November 30, 1999, was 36.51% excluding the 4.5% maximum sales
charge and 30.37% if the full 4.5% load had been paid on December 1,1994. The
cumulative total return of the Lebenthal Taxable Municipal Bonds Fund for the
five years ended November 30, 1999, was 49.00% excluding the 4.5% maximum sales
charge and 42.29% if the full 4.5% load had been paid on December 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 November 30, 1999, was
(a) 61.07% for the Lebenthal New York Municipal Bond Fund - class A shares
(inception June 24,1991); (b) -3.23% for the Lebenthal New York Municipal Bond
Fund - class B (inception December 1, 1997) (c) 16.86% for the Lebenthal New
Jersey Bond Fund (inception December 1,1993); and (d) 37.27% for the Lebenthal
Taxable Municipal Bond Fund (inception December 1,1993).
The SEC yields of the funds at their November 30, 1999, offering prices were:
New York (class A), 5.14%; New York (class B), 4.62%; New Jersey, 4.99%; and
Taxable Municipal, 6.99%. 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.
For the entire twentieth century, 1999 was the worst performance year on a total
rate of return basis for tax-exempt bonds and the second worst year for taxable
bonds. During the December 1, 1998, through November 30, 1999, period covered in
this report, prices of long duration taxable and tax-exempt bonds were generally
down more than 25%. Our funds did much better than bonds in general - but still
were down more than we thought possible particularly since the funds were being
managed defensively. Unfortunately, we underestimated the strength of the world
economy and the size of the increase in energy prices - both of which caused the
Federal Reserve to tighten credit more aggressively than we thought likely.
Additionally, the new issue calendar for both taxable and tax-exempt bonds
proved to be larger than we projected.
Because the year 2000 could be another difficult one for fixed-income
instruments - with multiple Federal Reserve Board mandated increases in
short-term rates, we have been increasing the defensiveness of the portfolio.
However, we are being careful not to limit the eventual upside when rates begin
their inevitable decline. In other words, we are not significantly reducing the
duration of our portfolios from current levels.
Since it appears to us that the market has already discounted much of the
projected rise in short-term rates, we do not think that bond prices will
decline in 2000 anywhere near as much as they did in 1999. We believe that the
economy will finally start to show some weakness in late 2000 - allowing for a
significant bond market rally. Inasmuch as the security markets act on
expectations, we would not be surprised if the rally didn't start in early Fall
2000. Of course, we could be wrong about a moderation in rates - and if that
should prove to be the case, we could easily become more defensive since all of
the securities we own are highly marketable. For the long run, we think that
bonds represent good value at current yield levels versus other investment
alternatives and versus inflation.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
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 - CLASS A
PERFORMANCE COMPARISON CHART
================================================================================
The following chart compares the performance of Lebenthal New York Municipal
Bond Fund - Class A (with and without the 4.5% sales load), for the one year and
since inception periods, against the Lehman Brothers Municipal Bond Index
(Lehman Index) for the same time periods. It is important to keep in mind that
the Lehman Index excludes the effects of any fees or sales charges, and does not
reflect state-specific bond market performance.
Lebenthal New York Municipal Bond Fund - Class A
Performance Comparison Chart
[The following table was represented as a line graph in the printed material]
Lehman Index with sales load without sales load
------------ --------------- ------------------
10000 9550 10000
10102 9576.68 10027.9
10233.3 9643.37 10097.8
10325.4 9764.96 10225.1
11/30/91 10354.3 9750.91 10210.4
10577 10017.3 10489.3
10601.3 9912.54 10379.6
10604.5 9981.87 10452.2
10608.7 10017.6 10489.6
10703.1 10117.2 10593.9
10829.4 10310 10795.8
11011.4 10561.5 11059.1
11341.7 10996 11514.1
11230.5 10750.3 11256.8
11303.5 10777.6 11285.4
11192.8 10557.4 11054.9
11/30/92 11393.1 10890.8 11403.9
11509.3 11025.6 11545.2
11642.8 11156.2 11681.9
12064.3 11654.5 12203.7
11936.4 11525.5 12068.6
12057 11683 12233.5
12124.5 11763.9 12318.2
12327 11955 12518.3
12343 11977.6 12542
12599.7 12283.2 12862
12743.4 12424.6 13010.1
12767.6 12435 13020.9
11/30/93 12655.2 12262 12839.7
12922.4 12534.2 13124.8
13070 12678.4 13275.8
12731.5 12327.2 12908.1
12213 11658.9 12208.3
12316.2 11652.5 12201.6
12423 11800.5 12356.6
12347.1 11709.2 12260.9
12573.4 11987.3 12552.1
12616.9 12028.4 12595.2
12431.7 11751.2 12304.9
12210.9 11403.5 11940.9
11/30/94 11990.1 11073.5 11595.3
12253.9 11441.3 11980.4
12604.4 11957.4 12520.9
12971.2 12375.7 12958.9
13120.4 12477.6 13065.5
13136.1 12525.5 13115.7
13555.1 12967.8 13578.8
13437.2 12915.4 13524
13564.9 12906.5 13514.6
13737.1 13086.1 13702.7
13823.7 13165.7 13786
14024.1 13394.4 14025.5
11/30/95 14256.9 13728.9 14375.8
14393.9 13872 14525.6
14503.3 13961.9 14619.8
14404.7 13907.5 14562.8
14220.3 13664 14312.8
14180.5 13588.8 14234.1
14174.8 13609.7 14256
14329.3 13829.7 14486.5
14459.7 13980.9 14644.8
14456.8 14001.4 14666.3
14659.2 14241.9 14918.2
14824.9 14374.8 15057.5
11/30/96 15096.2 14547.6 15238.5
15032.8 14498.3 15186.7
15061.3 14471.6 15158.8
15199.9 14610.8 15304.6
14997.8 14449.6 15135.8
15123.7 14592.4 15285.3
15350.6 14784 15486.1
15514.8 14924.5 15633.2
15944.6 15473.7 16208.5
15794.7 15369.6 16099.4
15982.7 15524.4 16261.5
16085 15649.1 16392.3
11/30/97 16179.9 15748.5 16496.3
16416.1 15981.6 16740.5
16585.2 16202 16971.4
16590.2 16206.7 16976.3
16605.1 16237.5 17008.6
16530.4 16169.7 16937.5
16791.5 16434 17214.4
16857 16540.6 17326
16899.2 16589.8 17377.6
17161.1 16856.8 17657.3
17375.6 17074 17831.4
17320 16998.8 17799.8
11/30/98 17408.3 17077.2 17881.9
17451.9 17090.9 17,896.21
17659.6 17246.4 18,059.06
17581.9 17255.0 18,068.09
17606.5 17325.8 18,142.17
17650.5 17424.6 18,245.58
17548.1 17306.0 18,121.51
17295.4 17190.1 18,000.10
17357.7 17229.6 18,041.50
17218.8 17100.4 17,906.18
17225.7 17098.7 17,904.39
17039.7 16790.9 17,582.12
11/30/99 17220.3 16785.9 17,576.84
- --------------------------------------------------------------------------------
Average Annual Total Return Since
One Five Commencement of Operations
Year Year June 24, 1991
Lebenthal New York - Class A
Municipal Bond Fund:
with sales load -8.75% 7.00% 5.94%
without sales load -4.69% 7.99% 6.52%
Lehman Index -1.08% 7.54% 6.89%
- --------------------------------------------------------------------------------
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND - CLASS B
PERFORMANCE COMPARISON CHART
================================================================================
The following chart compares the performance of Lebenthal New York Municipal
Bond Fund - Class B (with and without the 5.0% back end contingent defered sales
load), for the one year and since inception periods, against the Lehman Brothers
Municipal Bond Index (Lehman Index) for the same time periods. It is important
to keep in mind that the Lehman Index excludes the effects of any fees or sales
charges, and does not reflect state-specific bond market performance.
Lebenthal New York Municipal Bond Fund - Class B
Performance Comparison Chart
[The following table was represented as a line graph in the printed material]
12/03/97 10000.0 10000.0 10000.0
10146.0 9536.0 10036.0
10250.5 9646.1 10151.9
10253.6 9653.7 10159.9
10262.8 9650.4 10156.4
10216.6 9602.7 10106.2
10378.0 9754.5 10265.9
10418.5 9823.5 10338.6
10444.6 9833.5 10349.1
10606.5 9984.2 10507.7
10739.0 10100.7 10630.3
10704.7 10075.8 10604.1
11/30/98 10759.4 10119.9 10650.5
10786.2 10121.2 10651.9
10914.5 10214.7 10750.3
10866.5 10197.1 10731.8
10881.7 10228.5 10764.8
10908.9 10275.2 10814.0
10845.6 10199.0 10733.7
10689.5 10125.4 10656.3
10728.0 10136.2 10667.7
10642.1 10035.5 10561.7
10646.4 10022.6 10548.1
10531.4 9844.4 10360.6
11/30/99 10643.0 9818.2 10333.0
- --------------------------------------------------------------------------------
Average Annual Total Return Since
One Commencement of Operations
Year December 3, 1997
Lebenthal New York - Class B
MunicipalBond Fund:
with sales load -9.84% -1.58%
without sales load -5.57% 0.27%
Lehman Index -1.08% 3.25%
- --------------------------------------------------------------------------------
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
PERFORMANCE COMPARISON CHART
================================================================================
The following chart compares the performance of Lebenthal New Jersey Municipal
Bond Fund (with and without the 4.5% sales load), for the one year and since
inception periods, against the Lehman Brothers Municipal Bond Index (Lehman
Index) for the same time periods. It is important to keep in mind that the
Lehman Index excludes the effects of any fees or sales charges, and does not
reflect state-specific bond market performance.
Lebenthal New Jersey Municipal Bond Fund
Performance Comparison Chart
[The following table was represented as a line graph in the printed material]
Lehman Index with sales load without sales load
------------ --------------- ------------------
10000 9550 10000
10102 9576.68 10027.9
10233.3 9643.37 10097.8
10325.4 9764.96 10225.1
11/30/91 10354.3 9750.91 10210.4
10577 10017.3 10489.3
10601.3 9912.54 10379.6
10604.5 9981.87 10452.2
10608.7 10017.6 10489.6
10703.1 10117.2 10593.9
10829.4 10310 10795.8
11011.4 10561.5 11059.1
11341.7 10996 11514.1
11230.5 10750.3 11256.8
11303.5 10777.6 11285.4
11192.8 10557.4 11054.9
11/30/92 11393.1 10890.8 11403.9
11509.3 11025.6 11545.2
11642.8 11156.2 11681.9
12064.3 11654.5 12203.7
11936.4 11525.5 12068.6
12057 11683 12233.5
12124.5 11763.9 12318.2
12327 11955 12518.3
12343 11977.6 12542
12599.7 12283.2 12862
12743.4 12424.6 13010.1
12767.6 12435 13020.9
11/30/93 12655.2 12262 12839.7
12922.4 12534.2 13124.8
13070 12678.4 13275.8
12731.5 12327.2 12908.1
12213 11658.9 12208.3
12316.2 11652.5 12201.6
12423 11800.5 12356.6
12347.1 11709.2 12260.9
12573.4 11987.3 12552.1
12616.9 12028.4 12595.2
12431.7 11751.2 12304.9
12210.9 11403.5 11940.9
11/30/94 11990.1 11073.5 11595.3
12253.9 11441.3 11980.4
12604.4 11957.4 12520.9
12971.2 12375.7 12958.9
13120.4 12477.6 13065.5
13136.1 12525.5 13115.7
13555.1 12967.8 13578.8
13437.2 12915.4 13524
13564.9 12906.5 13514.6
13737.1 13086.1 13702.7
13823.7 13165.7 13786
14024.1 13394.4 14025.5
11/30/95 14256.9 13728.9 14375.8
14393.9 13872 14525.6
14503.3 13961.9 14619.8
14404.7 13907.5 14562.8
14220.3 13664 14312.8
14180.5 13588.8 14234.1
14174.8 13609.7 14256
14329.3 13829.7 14486.5
14459.7 13980.9 14644.8
14456.8 14001.4 14666.3
14659.2 14241.9 14918.2
14824.9 14374.8 15057.5
11/30/96 15096.2 14547.6 15238.5
15032.8 14498.3 15186.7
15061.3 14471.6 15158.8
15199.9 14610.8 15304.6
14997.8 14449.6 15135.8
15123.7 14592.4 15285.3
15350.6 14784 15486.1
15514.8 14924.5 15633.2
15944.6 15473.7 16208.5
15794.7 15369.6 16099.4
15982.7 15524.4 16261.5
16085 15649.1 16392.3
11/30/97 16179.9 15748.5 16496.3
16416.1 15981.6 16740.5
16585.2 16202 16971.4
16590.2 16206.7 16976.3
16605.1 16237.5 17008.6
16530.4 16169.7 16937.5
16791.5 16434 17214.4
16857 16540.6 17326
16899.2 16589.8 17377.6
17161.1 16856.8 17657.3
17375.6 17074 17831.4
17320 16998.8 17799.8
11/30/98 17408.3 17077.2 17881.9
13790.2 12394.8 13033.3
13954.3 12564.6 13211.8
13892.9 12557.1 13203.9
13912.4 12583.5 13231.6
13947.2 12648.9 13300.4
13866.3 12574.3 13222.0
13666.6 12433.4 13073.9
13715.8 12465.8 13107.9
13606.1 12318.7 12953.2
13611.5 12241.1 12871.6
13464.5 12034.2 12654.1
11/30/99 13607.2 12141.3 12766.7
- --------------------------------------------------------------------------------
Average Annual Total Return Since
One Five Commencement of Operations
Year Year December 1, 1993
Lebenthal New Jersey
Municipal Bond Fund:
with sales load -9.10% 6.33% 2.82%
without sales load -5.07% 7.31% 3.61%
Lehman Index -1.08% 7.54% 5.30%
- --------------------------------------------------------------------------------
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
PERFORMANCE COMPARISON CHART
================================================================================
The following chart compares the performance of Lebenthal Taxable Municipal Bond
Fund (with and without the 4.5% sales load), for the one year and since
inception periods, against the Lehman Brothers Long Corporate Bond Index (Lehman
Index) for the same time periods. It is important to keep in mind that the
Lehman Index excludes the effects of any fees or sales charges.
Lebenthal Taxable Municipal Bond Fund
Performance Comparison Chart
[The following table was represented as a line graph in the printed material]
Lehman Index with sales load without sales load
------------ --------------- ------------------
12/1/93 10000 9550 10000
10054 9710.5 10171.6
10297.1 9743.78 10206.5
9986.31 9745.02 10207.8
9583.36 9493.45 9944.26
9469.67 9385.34 9831.01
9372.93 9304.58 9746.42
9316.24 9242.46 9681.35
9636.97 9317.95 9760.42
9603.14 9240.5 9679.29
9337.73 9224.9 9662.96
9303.87 9197.88 9634.66
11/30/94 9340.26 8989.53 9416.4
9471.98 9209.91 9647.25
9705.64 9294.19 9735.53
10019.6 9582.28 10037.3
10128.5 9658.9 10117.6
10324.4 9809.53 10275.4
10966.9 10115.7 10596.1
11082.8 10250.9 10737.7
10974.5 10284.8 10773.1
11221 10409.2 10903.5
11402.8 10662.8 11169.1
11575.5 10897.1 11414.6
11/30/95 11844.8 11111.6 11639.3
12116.8 11284.4 11820.2
12314.1 11392.2 11933.1
11860 11088 11614.5
11732.1 11011.9 11534.8
11582.6 10853.2 11368.6
11559.7 10833.9 11348.4
11733.2 10919 11437.5
11743.8 10945.9 11465.7
11651.4 10944.1 11463.8
11979.2 11166.1 11696.4
12421 11391.8 11932.8
11/30/96 12783 11685.2 12240.1
12517.2 11561.8 12110.9
12476.9 11550.9 12099.4
12559 11601.8 12152.7
12262.5 11433 11975.9
12487.4 11610.3 12161.7
12655.6 11726.9 12283.8
12904.1 11990.8 12560.2
13600.9 12526.4 13121.2
13264.7 12298.6 12882.6
13603.1 12560.1 13156.5
13854.8 12863.8 13474.6
11/30/97 14012 12962.9 13578.5
14230.9 13158.7 13783.6
14367.4 13495.5 14136.3
14353.8 13438.8 14076.9
14411.8 13477.8 14117.8
14516.5 13532.5 14175.2
14766.8 13717.6 14369
14921.6 13974.3 14637.9
14823.1 13975.1 14638.7
14835.8 14365.7 15047.8
15374.8 14913 15563.7
15061.2 14691.1 15383.3
11/30/98 15642.5 14735.5 15429.9
15652.1 14729.6 15423.7
15857.1 14844.5 15544.0
15298.4 14449.6 15130.5
15345.0 14521.9 15206.2
15363.0 14598.9 15286.8
15092.4 14381.3 15059.0
14892.8 14401.5 15080.1
14746.2 14436.0 15116.3
14661.6 14374.0 15051.3
14506.3 14559.4 15245.4
14416.7 14536.1 15221.0
11/30/99 14391.7 14489.6 15172.3
- --------------------------------------------------------------------------------
Average Annual Total Return Since
One Five Year Commencement of Operations
Year December 1, 1993
Lebenthal Taxable Municipal
Bond Fund:
with sales load -9.70% 8.06% 5.62%
without sales load -5.77% 9.06% 6.43%
Lehman Index -4.86% 8.47% 6.26%
- --------------------------------------------------------------------------------
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
NOVEMBER 30, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- -------------- -------------- ------- --------
MUNICIPAL BONDS (89.48%)
- -----------------------------------------------------------------------------------------------------------------------------------
<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) $ 1,725,700 A+
1,375,000 Dutchess County, New York IDA Civic Facility (Astor Learning Center),
5.15%, due 11/01/24, (LOC-Bank of New York) 1,182,665 AA-
2,000,000 Dutchess County, New York IDA Civic Facility (Kaatsbaan International
Dance Center), 6.125%, due 11/01/29 (a) 2,009,620 AA
760,000 Metropolitan Trans Authority, New York Commuter Facility - Series C-2,
5.375%, due 07/01/27, (FGIC Insured) 698,204 Aaa AAA
1,285,000 Monroe County, New York IDA Civic Facility (DePaul Community Facility),
6.50%, due 02/01/24, (SONYMA Insured) 1,317,896 Aa1
500,000 Monroe County, New York IDA Civic Facility (Nazareth College),
5.25%, due 04/01/23, (MBIA Insured) 453,770 AAA
1,500,000 Nassau County, New York Tobacco Settlement Corporation,
6.40%, due 07/15/33 1,447,770 A3 A-
170,000 New York, New York (Prerefunded) - Series I, General Obligation,
6.25%, due 04/15/27 185,130 A3 A-
1,850,000 New York, New York (Unrefunded Balance) - Series I, General Obligation,
6.25%, due 04/15/27 1,867,982 A3 A
3,000,000 New York, New York, City Housing Development Corp Multifamily
Housing Revenue - Series B, 5.25%, due 11/01/31 2,605,620 Aa2 AA
1,705,000 New York State Dormitory Authority (Health Facilities) -
Series A, 5.50%, due 05/15/24, (FSA Insured) 1,598,403 Aaa AAA
1,300,000 New York State Dormitory Authority (Montefiore Medical Center),
5.50%, due 08/01/38, (AMBAC Insured) 1,191,684 Aaa AAA
1,000,000 New York State Dormitory Authority (St. Charles Hospital & Rehab Center),
5.50%, due 07/01/22, (MBIA Insured) 938,530 Aaa AAA
6,815,000 New York State Dormitory Authority (Highlands Living),
6.60%, due 02/01/34, (FHA Insured) 7,089,781 AA
2,330,000 New York State Dormitory Authority (Presbyterian Residential Community),
6.50%, due 08/01/34, (FHA Insured) 2,405,911 AA
3,500,000 New York State Dormitory Authority (Jewish Geriatric - Long Island),
7.35%, due 08/01/29, (FHA Insured) 3,832,745 AAA
5,190,000 New York State Dormitory Authority (Niagara Frontier Home),
6.40%, due 02/01/35, (FHA Insured) 5,296,551 AA
1,000,000 New York State Dormitory Authority (St. Lukes Home Residential Health),
6.375%, due 08/01/35, (FHA Insured) 1,019,420 AA
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- -------------- -------------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,900,000 New York State Dormitory Authority (Nottingham Retirement Community),
6.125%, due 07/01/25, (SONYMA Insured) $ 3,900,897 Aa1
4,755,000 New York State Dormitory Authority (Geneva Nursing Home),
6.20%, due 08/01/35, (FHA Insured) (b) 4,791,946 AA
5,750,000 New York State Dormitory Authority (Nursing Home-St. Johns Health),
6.25%, due 02/01/36, (FHA Insured) 5,765,755 AA
2,730,000 New York State Dormitory Authority (Jewish Home of Central NY),
6.25%, due 07/01/25, (LOC-Onbank & Trust Co.) 2,764,698 Aaa
500,000 New York State Dormitory Authority (Dept. Of Education),
5.75%, due 07/01/21 (MBIA Insured) 486,130 Aaa AAA
2,400,000 New York State Dormitory Authority (Nursing Home),
6.125%, due 02/01/36, (FHA Insured) 2,380,416 AAA
3,000,000 New York State Dormitory Authority (Methodist Hospital) - Series A,
6.05%, due 02/01/34, (AMBAC/FHA Insured) 3,002,310 Aaa AAA
750,000 New York State Dormitory Authority (Grace Manor Health Care Facility),
6.15%, due 07/01/18, (SONYMA Insured) 759,420 Aa1
4,000,000 New York State Dormitory Authority (Nursing Home-Menorah Campus),
6.10%, due 02/01/37, (FHA Insured) 3,948,600 AAA
700,000 New York State Dormitory Authority (Millard Fillmore Hospital),
5.375%, due 02/01/32, (AMBAC/FHA Insured) 635,516 Aaa AAA
1,000,000 New York State Dormitory Authority (Nursing Home-Rosalind & Joseph),
5.70%, due 02/01/37, (AMBAC/FHA Insured) 947,520 Aaa AAA
1,500,000 New York State Dormitory Authority (Hunts Point Multi-Service Center),
5.625%, due 07/01/22, (SONYMA Insured) 1,401,000 Aa1
2,400,000 New York State Dormitory Authority (Niagara Lutheran Development) -
Nursing Home, 5.60%, due 08/01/37, (MBIA/FHA Insured) 2,237,496 Aaa AAA
500,000 New York State Dormitory Authority (Saint Barnabas Hospital),
5.45%, due 08/01/35, (AMBAC/FHA Insured) 456,420 Aaa AAA
1,000,000 New York State Dormitory Authority (FHA-Nursing Home - Center for
Nursing), 5.55%, due 08/01/37, (FHA Insured) 903,170 AA
1,000,000 New York State Dormitory Authority (North Shore University Hospital),
5.25%, due 11/01/19, (MBIA Insured) 912,370 Aaa AAA
1,500,000 New York State Dormitory Authority (Menorah Home & Hospital),
5.10%, due 08/01/28, (AMBAC/FHA Insured) 1,305,165 Aaa AAA
3,800,000 New York State Dormitory Authority (Brooklyn Hospital Center),
5.15%, due 02/01/29, (AMBAC/FHA Insured) 3,341,264 Aaa
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- -------------- -------------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 270,000 New York State Energy Research & Development Authority -
Electric Facilities - (Long Island Lighting), Unrefunded Balance,
7.15%, due 02/01/22 $ 284,574 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) 1,058,740 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) 526,445 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) 3,642,828 A2
1,500,000 New York State Housing Finance Agency (Insured-Multifamily Mortgage) -
Series C, 6.50%, due 08/15/24, (FHA Insured) 1,549,410 Aa2 AAA
1,990,000 New York State Housing Finance Agency (Housing Project Mortgage) -
Series A, 6.125%, due 11/01/20, (FSA Insured) 1,995,711 Aaa AAA
2,000,000 New York State Housing Finance Agency (Multifamily Housing) -
Series D, 6.10%, due 11/15/36, (FHA Insured) 1,997,020 AAA
1,540,000 New York State Housing Finance Agency (Hospital & Health Care) -
Series A, 5.15%, due 11/01/16 1,423,869 Aaa AAA
60,000 New York State Medical Care Facilities Finance Agency,
7.30%, due 02/15/21 63,552 A3
6,750,000 New York State Medical Care Facilities Finance Agency - Series B,
6.60%, due 08/15/34, (FHA Insured) 7,023,375 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) 2,564,494 Aa2 AA
6,950,000 New York State Medical Care Facilities Finance Agency
(Mortgage Project) - Series C, 6.375%, due 02/15/29, (FHA Insured) 7,186,092 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) 5,058,200 Aa2 AA
1,750,000 New York State Medical Care Facilities Finance Agency,
Prerefunded, Series D, 6.60%, due 02/15/31, (FHA Insured) 1,886,658 AAA
1,000,000 New York State Urban Development Corp, (Senior Lien Corp.),
5.50%, due 07/01/26, (HUD Insured) 930,160 Aaa AAA
500,000 Oneida County New York Industrial Development Agency (Mohawk Valley
Handicapped Service), 5.30%, due 03/15/19, (ACA Insured) 453,270 A
3,200,000 Oswego County New York Development Agency (Seneca Hill Project) -
Series A, 5.65%, due 08/01/37, (FHA Insured) 2,941,664 AA
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- -------------- -------------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 600,000 Oswego County New York Development Agency (Saint Luke Residential
Health) - Series A, 5.40%, due 02/01/38, (FHA Insured) $ 530,052 AAA
1,000,000 Otsego County New York Development Agency (Bassett Healthcare
Project B), 5.375%, due 11/01/20, (MBIA Insured) 930,520 Aaa AAA
2,500,000 Syracuse New York Housing Authority (Loretto Residential Health) -
Series A, 5.80%, due 08/01/37, (FHA Insured) 2,369,200 AAA
3,000,000 Tsasc Incorporated, New York, (Tobacco Flexible Amortization Bond) -
Series 1, 6.375%, due 07/15/39 2,936,580 Aa3 A
--------------
Total Municipal Bonds (Cost $124,722,429) 124,159,889
--------------
<CAPTION>
Shares
- --------------
CLOSED-END FUNDS (9.30%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
133,400 Muniholdings New York Insured Fund III 1,459,063
170,500 Muniholdings New York Insured Fund Incorporated 2,024,688
137,300 Muniholdings New York Fund Incorporated 1,570,369
114,600 Muniholdings New York Insured Fund II Incorporated 1,239,112
213,996 Muniyield New York Insured Fund 2,514,453
112,400 Nuveen New York Performance Plus 1,559,550
114,600 Nuveen New York Investment Quality Municipal Fund 1,532,775
33,000 Nuveen New York Select Quality Municipal Fund 453,750
31,600 Van Kampen Merritt New York Quality 422,650
9,100 Van Kampen Merritt 135,362
--------------
Total Closed-End Funds (Cost $14,615,675) 12,911,772
--------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- -------------- -------------- ------- --------
COMMERCIAL PAPER (0.64%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
$ 890,000 General Electric Capital Corporation, 5.40%, due 12/01/99 $ 890,000
--------------
Total Commercial Paper (Cost $890,000) 890,000
--------------
Total Investments (99.42%) (Cost $140,228,104)+ 137,961,661
Cash and Other Assets, Net of Liabilities (0.58%) 804,555
--------------
Net Assets (100.00%) $ 138,766,216
==============
</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 $140,474,097.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $2,472,231 and $4,984,667, respectively,
resulting in net unrealized depreciation of $2,512,436.
KEY:
AMBAC = Ambac Indemnity Corporation
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>
- --------------------------------------------------------------------------------
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
NOVEMBER 30, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- -------------- -------------- ------- --------
MUNICIPAL BONDS (81.76%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 200,000 Camden County, New Jersey Import Authority Lease Revenue,
5.50%, due 09/01/16, (FGIC Insured) $ 194,858 Aaa AAA
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) 137,927 Aaa AAA
110,000 Essex County, New Jersey Import Authority, County Correctional
Facility - Series A, 5.70%, due 01/01/27, (FGIC Insured) 107,765 Aaa AAA
70,000 Essex County, New Jersey Import Authority Orange School District -
Series A, 6.95%, due 07/01/14, (MBIA Insured) 78,676 Aaa AAA
200,000 Guam Housing Corp., Single Family - Series A,
5.75%, due 09/01/31, (FHLMC Insured) 189,992 AAA
100,000 Irvington, New Jersey Housing & Mortgage Finance Authority,
6.50%, due 02/01/24, (FHA Insured) 102,926 AAA
300,000 Middlesex County, New Jersey Import Authority,
5.90%, due 09/15/21 300,990 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) 26,567 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) 177,707 A+
100,000 New Jersey Economic Development Authority, Economic Development
Revenue, American Airlines Inc. Project, 7.10%, due 11/01/31 103,647 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) 253,317 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) 157,138 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) 157,137 A+
100,000 New Jersey Economic Development Authority, Pollution Control Revenue,
PSE&G Co. Project, 6.40%, due 05/01/32, (MBIA Insured) 102,339 Aaa AAA
100,000 New Jersey Economic Development Authority, N. J. American Water Co.
Project A, 6.875%, due 11/01/34, (FGIC Insured) 107,561 Aaa AAA
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1999
================================================================================
<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) $ 92,581 AAA
125,000 New Jersey Health Care Facilities Financing Authority - General
Hospital Center at Passaic, 6.75%, due 07/01/19, (FSA Insured) 138,466 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) 108,198 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) 151,493 AAA
25,000 New Jersey Health Care Facilities Financing Authority, Capital Health
System Obligation Group, 5.25%, due 07/01/27 20,031 Baa2 BBB-
100,000 New Jersey Health Care Facilities Financing Authority, Community Medical
Center/Kimball, 5.50%, due 07/01/08 103,169 Aaa AAA
235,000 New Jersey Health Care Facilities Financing Authority,
Cathedral Health Services, 5.25%, due 08/01/21, (MBIA/FHA Insured) 216,703 Aaa AAA
250,000 New Jersey Health Care Facilities Financing Authority, Palisades Medical
Center Obligation Group, 5.25%, due 07/01/28, (ACA Insured) 219,878 A
300,000 New Jersey Health Care Facilities Financing Authority,
Meridian Health System Obligation Group,
5.25%, due 07/01/29, (FSA Insured) 271,686 Aaa AAA
100,000 New Jersey Economic Development Authority, Economic Growth -
Series D, 6.55%, due 08/01/14, (LOC - Fleet Bank) 103,754 A+
100,000 New Jersey Economic Development Authority, Sewage Facilities,
Anheuser-Busch Project, 5.85%, due 12/01/30 97,625 A1 A+
290,000 New Jersey State Education Facilities Authority, Monmouth University -
Series C, 5.40%, due 07/01/06 292,862 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) 100,858 Aaa AAA
150,000 New Jersey State Education Facilities Authority, Trenton State
College - Series E, 6.00%, due 07/01/19, (AMBAC Insured) 151,364 Aaa AAA
240,000 New Jersey State Higher Education Assistance Authority, Student
Loan Program - Series A, 5.80%, due 06/01/16, (MBIA Insured) 241,044 Aaa AAA
50,000 New Jersey State Higher Education Assistance Authority, Student Loan -
Series A, 5.30%, due 06/01/17, (AMBAC Insured) 47,401 Aaa AAA
125,000 New Jersey State Housing & Mortgage Finance Agency, MHRB
Refunding - Presidential Plaza, 7.00%, due 05/01/30, (FHA Insured) 131,341 AAA
300,000 New Jersey State Housing & Mortgage Finance Agency, MHRB -
Series A, 6.05%, due 11/01/20, (AMBAC/FHA Insured) 299,277 Aaa AAA
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- -------------- -------------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 100,000 New Jersey State Housing & Mortgage Finance Agency, MHRB -
Series A, 6.25%, due 05/01/28, (AMBAC Insured), Subject to AMT $ 100,188 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 68,598 Aaa AAA
125,000 New Jersey State Housing & Mortgage Finance Agency,
Series A, 6.95%, due 11/01/13, (HUD Section 8 Insured) 132,085 A+
150,000 New Jersey State Housing & Mortgage Finance Agency, Home Buyers -
Series O, 6.35%, due 10/01/27, (MBIA Insured), Subject to AMT 153,512 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 353,196 Aaa AAA
250,000 New Jersey State Transportation Trust Fund Authority, Transportation
System-Series A, 5.625%, due 06/15/14 254,095 Aa2 AA-
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) 149,890 AAA
800,000 Port Authority of New York & New Jersey Special Obligation, JFK
International Air Terminal - Series 6, 5.75%, due 12/01/22 782,048 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/FHLMC Insured), Subject to AMT 70,438 Aaa AAA
250,000 Rancocas Valley New Jersey Regional High School District
General Obligation, 5.30%, due 02/01/21, (FGIC Insured) 234,853 Aaa AAA
--------------
Total Municipal Bonds (Cost $7,302,914) 7,285,181
--------------
<CAPTION>
Shares
- --------------
CLOSED-END FUNDS (9.34%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
21,900 Muniyield New Jersey Insured Fund 260,063
31,114 Muniyield New Jersey Fund 381,147
3,000 Muniholdings New Jersey Insured Fund 34,687
4,574 Muniholdings New Jersey Insured Fund III 50,600
8,700 Muniholdings New Jersey Insured Fund IV 105,487
--------------
Total Closed-End Funds (Cost $992,287) 831,984
--------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- -------------- -------------- ------- --------
COMMERCIAL PAPER (1.40%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 125,000 General Electric Capital Corporation, 5.40%, due 12/02/99 $ 125,000
--------------
Total Commercial Paper (Cost $125,000) 125,000
--------------
Total Investments (92.50%) (Cost $8,420,201)+ 8,242,165
Cash and Other Assets, Net of Liabilities (7.50%) 668,399
--------------
Net Assets (100.00%) $ 8,910,564
==============
</TABLE>
+ Aggregate cost for federal income tax purposes is $8,422,323.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $161,931 and $342,089, respectively,
resulting in net unrealized depreciation of $180,158.
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 TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS
NOVEMBER 30, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- -------------- -------------- ------- --------
MUNICIPAL BONDS (91.65%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 150,000 All Saints Health System, 9.00%, due 08/15/24, (MBIA Insured) $ 154,867 Aaa AAA
385,000 Baltimore, Maryland - Series B, General Obligation,
7.90%, due 10/15/16, (FGIC Insured) 387,379 Aaa AAA
1,100,000 Bastrop, Texas Economic Development Corporation, Sales Tax,
8.00%, due 08/15/16 1,109,977 BBB+
100,000 Buffalo, New York - Series F, 9.05%, due 02/01/15, (AMBAC Insured) 102,453 Aaa AAA
240,000 California Housing Finance Agency, Multi-family Housing - Series C,
8.10%, due 02/01/37, (AMBAC Insured) 234,598 Aaa AAA
2,000,000 Compton, California Community Redevelopment Agency - Series C,
Tax Allocation, 0.00%*, due 08/01/22, (FSA Insured) 332,040 Aaa AAA
150,000 Connecticut State Health and Educational Facilities Authority, Maefair
Health Care, 9.20%, due 11/01/24 169,639 A1 AA-
150,000 Connecticut State Health and Educational Facilities Authority, Shady Knoll
Center, 8.90%, due 11/01/24 162,021 A1 AA-
255,000 Connecticut State Housing Finance Authority - Series F,
9.25%, due 05/15/27 263,581 Aa2 AA
200,000 Connecticut State Housing Finance Authority - Series G,
7.625%, due 05/15/21 192,816 Aa2 AA
100,000 Connecticut State Development Authority - Sub Series B1,
8.50%, due 08/15/14 103,478 A+
125,000 Conyers, Georgia Water & Sewer - Series B,
8.75%, due 07/01/15, (AMBAC Insured) 125,750 Aaa AAA
250,000 Cuyahoga County, Ohio Economic Development, Gateway Arena Project -
Series A, 8.625%, due 06/01/22 259,907
500,000 Detroit, Michigan Downtown Development Authority Tax Increment
Revenue, Taxable-Dev Area No 1 Project-B,
6.68%, due 07/01/28, (MBIA Insured) 441,920 Aaa AAA
200,000 Florida Housing Finance Agency, Taxable Housing Mariner Club - K-2,
8.25%, due 09/01/15, (AMBAC Insured) 198,182 Aaa AAA
1,230,000 Harrisburg, Pennsylvania - Series A, General Obligation,
0.00%*, due 04/01/18, (AMBAC Insured) 300,796 Aaa AAA
1,165,000 Harrisburg, Pennsylvania - Series A, General Obligation,
0.00%*, due 04/01/19, (AMBAC Insured) 263,838 Aaa AAA
350,000 Harrison County, Mississippi - Series A, General Obligation,
7.75%, due 04/01/16, (MBIA Insured) 352,023 Aaa
150,000 Idaho Housing Agency, 8.50%, due 07/01/09, (HUD Section 8 Insured) 151,035 A
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- -------------- -------------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 150,000 Illinois Housing Development Authority, Affordable Housing Project,
8.64%, due 12/01/21, (AMBAC Insured) $ 154,072 Aaa AAA
2,180,000 Kern County, California Pension Obligation,
0.00%*, due 08/15/18, (MBIA Insured) 513,455 Aaa AAA
325,000 Maryland State Community Development Administration - Series F,
9.10%, due 05/15/10, (MHF Insured) 336,866 Aa3
150,000 Memorial Health System, Illinois, 8.375%, due 10/01/20, (MBIA Insured) 156,606 Aaa AAA
200,000 Michigan State Housing Development Authority - Series A,
8.30%, due 11/01/15, (AMBAC Insured) 201,266 Aaa AAA
50,000 Minnesota State Housing Finance Agency, Rental Housing - Series B,
8.00%, due 02/01/18 49,500 AA
40,000 Minnesota State Housing Finance Agency, Single Family Mortgage -
Series G, 8.05%, due 01/01/12 39,300 Aa2 AA+
600,000 Mississippi Hospital Equipment and Facilities Authority, Wesley Health
Systems - Series A, 9.10%, due 04/01/06 651,624 AAA
60,000 New Hampshire State Housing and Finance Authority, Single Family -
Series C, 9.40%, due 07/01/14 61,323 Aa2
240,000 New Jersey State Housing and Mortgage Finance Agency, Rental Housing -
Series E, 8.95%, due 11/01/12 246,029 AA-
700,000 New York State Dormitory Authority, Highland Hospital - Series B,
7.45%, due 08/01/35, (MBIA Insured) 678,461 Aaa AAA
250,000 New York State Environmental Facilities - Series A,
9.625%, due 03/15/21 270,938 Baa1 AAA
300,000 New York State Housing Finance Agency, Multi-family Housing - Series B,
8.25%, due 05/15/35, (FHA Insured) 293,784 AAA
350,000 New York State Housing Finance Agency, Multi-family Housing - Series C,
8.11%, due 11/15/38, (FHA Insured) 344,484 AAA
110,000 New York State Housing Finance Agency, Service Contract Obligation -
Series B, 8.60%, due 03/15/04 115,539 Baa1 A-
100,000 Pittsburgh, Pennsylvania Urban Redevelopment Authority,
9.07%, due 09/01/14, (FSA Insured) 107,304 Aaa AAA
300,000 Sacramento County, California - Series A,
7.68%, due 08/15/21, (MBIA Insured) 302,463 Aaa AAA
120,000 Southeastern Pennsylvania Transit Authority - Series B,
8.75%, due 03/01/20, (FGIC Insured) 123,155 Aaa AAA
300,000 Tampa, Florida Sports Authority, Hillsboro Arena Project,
8.07%, due 10/01/26, (MBIA Insured) 296,253 Aaa AAA
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings
---------------------
Face Value Standard
Amount (Note 1) Moody's & Poor's
- -------------- -------------- ------- --------
MUNICIPAL BONDS (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 300,000 Texas State, Veterans Housing, General Obligation,
7.35%,due 12/01/21 $ 279,189 Aa1 AA
375,000 Texas State Department of Housing and Community Affairs
Series C-1, 7.76%, due 09/01/17, (MBIA Insured) 368,164 Aaa AAA
500,000 Virginia State Housing Development Authority Commonwealth Mortgage,
7.80%, due 07/01/17 480,435 Aa1 AA+
450,000 Virginia State Housing Development Authority Commonwealth Mortgage,
8.375%, due 10/01/20 450,954 Aa1 AA+
365,000 Virginia State Housing Development Authority, Multi-family - Series A,
8.125%, due 11/01/15 360,653 Aa1 AA+
175,000 Wisconsin Housing & Economic Development Authority - Series H,
7.875%, due 03/01/26 172,057 Aa2 AA
--------------
Total Municipal Bonds (Cost $12,424,964) 12,360,174
--------------
<CAPTION>
Shares
- --------------
CLOSED-END FUNDS (8.42%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
90,880 Blackrock Income Trust Incorporated 545,280
80,000 Hyperion Total Return Fund Incorporated 590,000
--------------
Total Closed-End Funds (Cost $1,196,243) 1,135,280
--------------
Total Investments (100.07%) (Cost$13,621,207)+ 13,495,454
Liabilities in Excess of Cash and Other Assets (-0.07%) (8,819)
--------------
Net Assets (100.00%) $ 13,486,635
==============
</TABLE>
+ Aggregate cost for federal income tax purposes is $13,709,480.
Aggregate unrealized appreciation and depreciation, based on cost for
federal income tax purposes, are $205,061 and $419,087, respectively,
resulting in net unrealized depreciation of $214,026.
* 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
NOVEMBER 30, 1999
================================================================================
<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 $140,228,104, $8,420,201
and $13,621,207) .................................................... $ 137,961,661 $ 8,242,165 $ 13,495,454
Cash ................................................................... 101,791 11,844 --
Receivables:
Securities sold .................................................. 3,706,138 495,637 --
Capital shares sold .............................................. 357,785 65,056 8,642
Interest and dividends ........................................... 2,195,570 136,206 204,032
Due from Manager ................................................. -- 51,423 26,492
------------- ------------- -------------
Total assets ................................................... 144,322,945 9,002,331 13,734,620
------------- ------------- -------------
LIABILITIES
Payables:
Securities purchased ............................................. 3,702,713 39,964 --
Capital shares redeemed .......................................... 1,307,145 4,000 138,086
Dividends declared ............................................... 413,944 26,774 47,631
Distribution fee payable (Note 3) ................................ 29,904 -- --
Management fee payable (Note 2) .................................. 26,381 1,856 2,828
Administration fee payable ....................................... 23,661 1,364 3,339
Due to custodian ................................................. -- -- 40,409
Accrued expenses and other liabilities ................................. 52,981 17,809 15,692
------------- ------------- -------------
Total liabilities .............................................. 5,556,729 91,767 247,985
------------- ------------- -------------
NET ASSETS ............................................................. 138,766,216 8,910,564 13,486,635
============= ============= =============
NET ASSETS consist of:
Par value .............................................................. 18,168 1,369 1,979
Paid in capital ........................................................ 142,616,600 9,497,360 14,082,433
Undistributed investment income-net .................................... 9,065 (152) --
Accumulated net realized loss on investments ........................... (1,611,174) (409,977) (472,024)
Unrealized depreciation on investments - net ........................... (2,266,443) (178,036) (125,753)
------------- ------------- -------------
Total net assets ............................................... $ 138,766,216 $ 8,910,564 $ 13,486,635
============= ============= =============
CLASS A
Net Assets ............................................................. $ 134,856,800 $ 8,910,564 $ 13,486,635
Shares outstanding (Note 4) ............................................ 17,656,480 1,368,922 1,979,100
Net asset value and redemption price per share ......................... $ 7.64 $ 6.51 $ 6.81
Maximum offering price per share* ...................................... $ 8.00 $ 6.82 $ 7.13
CLASS B
Net Assets ............................................................. $ 3,909,416 $ -- $ --
Shares outstanding (Note 4) ............................................ 511,564 -- --
Net asset value, offering price and redemption price per share** ....... $ 7.64 $ -- $ --
</TABLE>
* The sales charge for Class A is 4.5% of the offering price on a single
sale of less than $50,000, reduced on sales of $50,000 or more and certain
other sales.
** Class B shares are sold without an initial sales charge, but are subject
to a 5% contingent deferred sales charge if shares are redeemed within 11
months, reduced on shares held over 12 months.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
STATEMENTS OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1999
================================================================================
<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 ......................................................... $ 8,108,801 $ 488,700 $ 1,109,272
Dividends ........................................................ 456,708 32,507 76,384
------------ ------------ ------------
Total income .................................................. 8,565,509 521,207 1,185,656
------------ ------------ ------------
Expenses:
Management fee (Note 2) .......................................... 333,175 23,475 39,370
Distribution fee:
Class A (Note 3) .............................................. 363,794 23,475 39,370
Class B (Note 3) .............................................. 33,151 -- --
Shareholder servicing fees:
Class A ....................................................... 71,587 30,768 31,625
Class B ....................................................... 27,870 -- --
Administration fee ............................................... 147,346 8,925 16,117
Printing ......................................................... 13,655 1,206 2,416
Custodian fee .................................................... 23,654 3,106 3,087
Interest ......................................................... 979 180 784
Legal and compliance fees ........................................ 63,856 9,321 6,779
Audit and accounting fees ........................................ 87,075 30,174 32,704
Directors' fees .................................................. 8,200 462 960
Registration fees:
Class A ....................................................... 1,582 3,127 6,114
Class B ....................................................... 2,695 -- --
Other ............................................................ 2,846 1,671 2,025
------------ ------------ ------------
Total expenses ................................................ 1,181,465 135,890 181,351
Less: Reimbursement of expenses by Manager (Note 2) .............. -- (44,366) (11,652)
Fees waived by Distributor (Note 3) ........................... (27,474) (23,475) (39,370)
Fees paid indirectly (Note 1) ................................. (1,646) (1,194) (848)
------------ ------------ ------------
Net expenses ..................................................... 1,152,345 66,855 129,481
------------ ------------ ------------
Net investment income ............................................... 7,413,164 454,352 1,056,175
------------ ------------ ------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized loss on investments .................................... (1,610,400) (182,005) (152,602)
Change in unrealized appreciation of investments .................... (12,965,286) (755,797) (1,866,190)
------------ ------------ ------------
Net realized and unrealized loss on investments ..................... (14,575,686) (937,802) (2,018,792)
------------ ------------ ------------
Decrease in net assets from operations .............................. $ (7,162,522) $ (483,450) $ (962,617)
============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED NOVEMBER 30, 1999 AND 1998
================================================================================
<TABLE>
<CAPTION>
Lebenthal New York Municipal Lebenthal New Jersey Municipal
Bond Fund Bond Fund
----------------------------------- -----------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income .................. $ 7,413,164 $ 7,075,712 $ 454,352 $ 379,638
Net realized gain (loss) on
investments .......................... (1,610,400) 2,462,544 (182,005) 36,505
Change in unrealized
appreciation ......................... (12,965,286) 1,099,338 (755,797) 199,349
------------- ------------- ------------- -------------
Increase (Decrease) in net assets
from operations ........................ (7,162,522) 10,637,594 (483,450) 615,492
Dividends from net investment
income:
Class A shares ....................... (7,273,696)* (7,033,260) (454,352)* (379,638)
Class B shares ....................... (139,468)* (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) ............................... 4,663,837 12,767,794 806,223 2,684,705
------------- ------------- ------------- -------------
Total increase (decrease) ............ (11,707,520) 16,329,676 (131,579) 2,920,559
Net assets:
Beginning of period .................... 150,473,736 134,144,060 9,042,143 6,121,584
------------- ------------- ------------- -------------
End of period (1) ...................... $ 138,766,216 $ 150,473,736 $ 8,910,564 $ 9,042,143
============= ============= ============= =============
(1) Includes Undistributed Net
Investment Income (Loss) ............... $ 9,065 $ 8,544 $ (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)
YEARS ENDED NOVEMBER 30, 1999 AND 1998
================================================================================
<TABLE>
<CAPTION>
Lebenthal Taxable Municipal
Bond Fund
--------------------------------------
1999 1998
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income .................................................... $ 1,056,175 $ 1,036,722
Net realized gain (loss) on investments .................................. (152,602) 42,480
Change in unrealized appreciation ........................................ (1,866,190) 701,114
------------ ------------
Increase (Decrease) in net assets from operations ........................... (962,617) 1,780,316
Dividends from net investment income ........................................ (1,056,175) (1,036,722)
Capital share transactions (Note 4) ......................................... (2,283,652) 2,051,611
------------ ------------
Total increase (decrease) .............................................. (4,302,444) 2,795,205
Net assets:
Beginning of period ...................................................... 17,789,079 14,993,874
------------ ------------
End of period (1) ........................................................ $ 13,486,635 $ 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
------------------------------------------------------------------------
Year Ended November 30,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
--------- --------- --------- --------- ---------
<S> <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
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income ....................... 0.41 0.42 0.42 0.41 0.43
Net realized and unrealized gain (loss)
on investments ........................... (0.79) 0.21 0.23 0.10 1.15
--------- --------- --------- --------- ---------
Total from investment operations ............ (0.38) 0.63 0.65 0.51 1.58
--------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income ........ (0.41) (0.42) (0.42) (0.41) (0.43)
Distributions from net realized gain
on investments ........................... (0.10) -- -- -- --
--------- --------- --------- --------- ---------
Total distributions ......................... (0.51) (0.42) (0.42) (0.41) (0.43)
--------- --------- --------- --------- ---------
Net asset value, end of period .............. $ 7.64 $ 8.53 $ 8.32 $ 8.09 $ 7.99
========= ========= ========= ========= =========
Total Return
(without deduction of sales load) ........ (4.69)% 7.69% 8.27% 6.63%* 23.56%
Ratios/Supplemental Data
Net assets, end of period (000) ............. $ 134,857 $ 147,673 $ 134,144 $ 122,611 $ 105,579
Ratios to average net assets:
Expenses ................................. 0.76%** 0.76%** 0.89%** 1.09% 0.99%
Net investment income .................... 5.00% 4.92% 5.16% 5.17% 5.63%
Portfolio turnover .......................... 59.91% 66.04% 60.80% 45.92% 148.88%
</TABLE>
* 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:
================================================================================
Lebenthal New York
Municipal Bond Fund -- Class B
------------------------------
Year Ended November 30,
------------------------------
1999 1998*
--------- ---------
Per Share Operating Performance:
Net asset value, beginning of period ........... $ 8.54 $ 8.34
--------- ---------
Income from investment operations:
Net investment income .......................... 0.34 0.33
Net realized and unrealized gain (loss)
on investments .............................. (0.80) 0.20
--------- ---------
Total from investment operations ............... (0.46) 0.53
--------- ---------
Less distributions:
Dividends from net investment income ........... (0.34) (0.33)
Distributions from net realized gain
on investments .............................. (0.10) --
--------- ---------
Total distributions ............................ (0.44) (0.33)
--------- ---------
Net asset value, end of period ................. $ 7.64 $ 8.54
========= =========
Total Return (1)
(without deduction of sales load) ........... (5.57)% 6.48%
Ratios/Supplemental Data
Net assets, end of period (000) ................ $ 3,909 $ 2,801
Ratios to average net assets:
Expenses++ (2) .............................. 1.55%** 1.55%**
Net investment income (2) ................... 4.21% 3.95%
Portfolio turnover ............................. 59.91% 66.04%
(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 not waived fees, the ratio of
operating expenses to average net assets would have been 2.38% and 4.58%
for the periods 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
---------------------------------------------------------------------
Year Ended November 30,
---------------------------------------------------------------------
1999 1998 1997 1996 1995
--------- --------- --------- --------- ---------
<S> <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
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income ................. 0.34 0.35 0.35 0.36 0.36
Net realized and unrealized gain (loss)
on investments ..................... (0.69) 0.23 0.23 0.04 0.75
--------- --------- --------- --------- ---------
Total from investment operations ...... (0.35) 0.58 0.58 0.40 1.11
--------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income .. (0.34) (0.35) (0.35) (0.36) (0.36)
Distributions from net realized gain
on investments ..................... -- -- -- -- --
--------- --------- --------- --------- ---------
Total distributions ................... (0.34) (0.35) (0.35) (0.36) (0.36)
--------- --------- --------- --------- ---------
Net asset value, end of period ........ $ 6.51 $ 7.20 $ 6.97 $ 6.74 $ 6.70
========= ========= ========= ========= =========
Total Return
(without deduction of sales load) .. (5.07)% 8.47% 8.84% 6.18% 19.10%
Ratios/Supplemental Data
Net assets, end of period (000) ....... $ 8,911 $ 9,042 $ 6,122 $ 5,182 $ 3,358
Ratios to average net assets:
Expenses+ .......................... 0.71%* 0.60%* 0.70%* 0.63%* 0.60%
Net investment income .............. 4.84% 4.87% 5.12% 5.37% 5.64%
Portfolio turnover .................... 52.66% 31.81% 57.19% 28.56% 61.69%
</TABLE>
+ 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 1.45%, 1.60%,
2.57%, 3.20%, and 4.13% for the years ended November 30, 1999, 1998, 1997,
1996, and 1995, respectively.
* 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
--------------------------------------------------------------------------
Year Ended November 30,
--------------------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
<S> <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
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income ................. 0.49 0.49 0.50 0.52 0.53
Net realized and unrealized gain (loss)
on investments ..................... (0.92) 0.36 0.24 (0.09) 0.88
---------- ---------- ---------- ---------- ----------
Total from investment operations ...... (0.43) 0.85 0.74 0.43 1.41
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income .. (0.49) (0.49) (0.50) (0.52) (0.53)
Distributions from net realized gain
on investments ..................... -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total distributions ................... (0.49) (0.49) (0.50) (0.52) (0.53)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ........ $ 6.81 $ 7.73 $ 7.37 $ 7.13 $ 7.22
========== ========== ========== ========== ==========
Total Return
(without deduction of sales load) .. (5.77)% 11.85% 10.89% 6.35% 23.11%
Ratios/Supplemental Data
Net assets, end of period (000) ....... $ 13,487 $ 17,789 $ 14,994 $ 14,607 $ 8,686
Ratios to average net assets:
Expenses+ .......................... 0.82%* 0.70%* 0.79%* 0.61%* 0.60%
Net investment income .............. 6.71% 6.45% 7.06% 7.34% 7.57%
Portfolio turnover .................... 21.12% 23.75% 34.52% 44.46% 84.74%
</TABLE>
+ If the Investment Manager had not waived fees and reimbursed expenses and
the Administrator and Distributor had not waived fees, the ratio of
operating expenses to average net assets would have been 1.15%, 1.15%,
1.42%, 1.63% and 2.59% for the years ended November 30, 1999, 1998, 1997,
1996 and 1995, respectively.
* Includes fees paid indirectly of 0.01% of average net assets.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Summary of Accounting Policies
Lebenthal Funds, Inc. (the "Company") is registered under the Investment Company
Act of 1940 as an open-end management investment company consisting of Lebenthal
New York Municipal Bond Fund (the "New York Bond Fund"), Lebenthal New Jersey
Municipal Bond Fund (the "New Jersey Bond Fund") and Lebenthal Taxable Municipal
Bond Fund (the "Taxable Bond Fund") collectively, "The Funds". Effective
December 3, 1997, the New York Bond Fund began to offer a second class of
shares, Class B. Class B shares are sold without an initial sales charge but
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.
The Funds may periodically make reclassifications among certain of their
capital accounts as a result of the timing and characterization of certain
income and capital gains distributions determined annually in accordance
with federal tax regulations which may differ from generally accepted
accounting principals. For the year ended November 30, 1999, $521 of
accumulated net realized gain was reclassified to undistributed net
investment income for the New York Municipal Bond Fund and $152 of
accumulated net realized loss was reclassified to undistributed net
investment income for the New Jersey Bond Fund.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
Summary of Accounting Policies (Continued)
d) 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.
e) 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 $1,646, $1,194 and $848 for
the New York Bond Fund, New Jersey Bond Fund, and Taxable Bond Fund,
respectively.
f) 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 $44,366 and $11,652, respectively.
Lebenthal & Co., Inc. retained commissions of $137,162 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.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
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 year ended November 30, 1999, the
Distributor voluntarily waived fees of $23,475, $39,370 and $27,474 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 November 30, 1999, 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 Lebenthal New York
Municipal Bond Fund -- Municipal Bond Fund --
Class A Class A
Year Ended Year Ended
November 30, 1999 November 30, 1998
---------------------------------- ----------------------------------
Shares Amount Shares Amount
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sold ....................................... 1,710,476 $ 14,032,690 2,792,372 $ 23,568,425
Issued as reinvestment of dividends ........ 944,845 7,762,044 731,001 6,165,292
Redeemed ................................... (2,303,853) (18,618,190) (2,338,936) (19,743,010)
------------ ------------ ------------ ------------
Net increase ............................... 351,468 $ 3,176,544 1,184,437 $ 9,990,707
============ ============ ============ ============
<CAPTION>
Lebenthal New York Lebenthal New York
Municipal Bond Fund -- Municipal Bond Fund --
Class B Class B
Year Ended Year Ended
November 30, 1999 November 30, 1998*
---------------------------------- ----------------------------------
Shares Amount Shares Amount
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Sold ....................................... 204,461 $ 1,651,979 329,526 $ 2,789,840
Issued as reinvestment of dividends ........ 16,355 134,065 3,624 30,740
Redeemed ................................... (37,315) (298,751) (5,087) (43,493)
----------- ----------- ----------- -----------
Net increase ............................... 183,501 $ 1,487,293 328,063 $ 2,777,087
=========== =========== =========== ===========
</TABLE>
* Lebenthal New York Municipal Bond Fund -- Class B commenced operations on
December 3, 1997.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
Capital Stock (Continued)
<TABLE>
<CAPTION>
Lebenthal New Jersey Lebenthal New Jersey
Municipal Bond Fund Municipal Bond Fund
Year Ended Year Ended
November 30, 1999 November 30, 1998
--------------------------------- ---------------------------------
Shares Amount Shares Amount
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Sold ....................................... 249,427 $ 1,755,135 494,730 $ 3,512,395
Issued as reinvestment of dividends ........ 56,103 389,942 45,998 325,833
Redeemed ................................... (193,126) (1,338,854) (162,955) (1,153,523)
----------- ----------- ----------- -----------
Net increase ............................... 112,404 $ 806,223 377,773 $ 2,684,705
=========== =========== =========== ===========
<CAPTION>
Lebenthal Taxable Lebenthal Taxable
Municipal Bond Fund Municipal Bond Fund
Year Ended Year Ended
November 30, 1999 November 30, 1998
--------------------------------- ---------------------------------
Shares Amount Shares Amount
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Sold ....................................... 194,919 $ 1,451,904 558,753 $ 4,254,162
Issued as reinvestment of dividends ........ 102,506 744,150 93,338 706,972
Redeemed ................................... (618,724) (4,479,706) (385,439) (2,909,523)
----------- ----------- ----------- -----------
Net increase (decrease) .................... (321,299) $(2,283,652) 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 $90,207,384,
$5,047,873, and $3,268,135, 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 and government securities having maturities of one
year or less, were $87,246,669, $4,825,730, and $5,103,290, 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,
2003, 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.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
7. Concentration of Credit Risk
The New York Bond Fund invests primarily in obligations of political
subdivisions of the state of New York and the New Jersey Bond Fund invests
primarily in obligations of political subdivisions of the state of New Jersey
and accordingly these funds are subject to the risk associated with the
non-performance of such issuers. Each Fund maintains a policy of monitoring its
exposure by reviewing the creditworthiness of the issuers, as well as that of
financial institutions issuing letters of credit, and by limiting the amount of
holdings with letters of credit from one financial institution.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
LEBENTHAL FUNDS, INC.
INDEPENDENT AUDITOR'S REPORT
================================================================================
To the Shareholders and Board of Directors of the
Lebenthal Funds, Inc.:
In our opinion, the accompanying statements of assets and liabilities, including
the statements of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of each of the funds constituting
Lebenthal Funds, Inc. (hereafter referred to as the "Funds") at November 30,
1999, the results of their operations for the year then ended, the changes in
their net assets for each of the two years in the period then ended and the
financial highlights for each of the three years in the period then ended, in
conformity with accounting principles generally accepted in the United States.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. The financial highlights for each of the two years in the period
ended November 30, 1996 for the Funds were audited by other auditors, whose
report, dated January 10, 1997, expressed an unqualified opinion on those
statements. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States, which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at November 30, 1999 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Kansas City, Missouri
January 7, 2000
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
[This Page Intentionally Left Blank.]
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
[This Page Intentionally Left Blank.]
- --------------------------------------------------------------------------------
<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 1-800-221-5822
