<PAGE> 1
INTERMEDIATE TAX FREE PORTFOLIO 7
-----------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
========================================================================================================================
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Investments, at Value (Cost $20,438,516) $21,902,889
- ------------------------------------------------------------------------------------------------------------------------
Cash 20,065
- ------------------------------------------------------------------------------------------------------------------------
Interest and Other Receivables 342,956
- ------------------------------------------------------------------------------------------------------------------------
Prepaid Expenses and Other 1,576
- ------------------------------------------------------------------------------------------------------------------------
Due from Bankers Trust 4,843
- ------------------------------------------------------------------------------------------------------------------------
Total Assets 22,272,329
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------
Accrued Expenses and Other 19,625
- ------------------------------------------------------------------------------------------------------------------------
Total Liabilities 19,625
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $22,252,704
========================================================================================================================
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Paid-in Capital $20,788,331
- ------------------------------------------------------------------------------------------------------------------------
Net Unrealized Appreciation on Securities 1,464,373
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS, DECEMBER 31, 1995 $22,252,704
========================================================================================================================
STATEMENT OF OPERATIONS
========================================================================================================================
For the year ended December 31, 1995
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- -------------------------------------------------------------------------------------------------------------------------
Interest $1,308,894
- ------------------------------------------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------------------------------------------
Advisory $ 96,572
- ------------------------------------------------------------------------------------------------------------------------
Administration and Services 12,072
- ------------------------------------------------------------------------------------------------------------------------
Professional 14,493
- ------------------------------------------------------------------------------------------------------------------------
Trustees 1,867
- ------------------------------------------------------------------------------------------------------------------------
Miscellaneous 2,212
- ------------------------------------------------------------------------------------------------------------------------
Total Expenses 127,216
- ------------------------------------------------------------------------------------------------------------------------
Less: Expenses Absorbed by Bankers Trust (18,572) 108,644
- ------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,200,250
- ------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
- ------------------------------------------------------------------------------------------------------------------------
Net Realized Gain from SecuritiesTransactions 373,137
- ------------------------------------------------------------------------------------------------------------------------
Net Unrealized Appreciation on Securities 1,660,679
- ------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON SECURITIES 2,033,816
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $3,234,066
========================================================================================================================
</TABLE>
See Notes to Financial Statements on Page 13
<PAGE> 2
INTERMEDIATE TAX FREE PORTFOLIO 8
-----------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
=======================================================================================================================
For the For the
year ended year ended
December December
31, 1995 31, 1994
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
- -----------------------------------------------------------------------------------------------------------------------
OPERATIONS
- -----------------------------------------------------------------------------------------------------------------------
Net Investment Income $ 1,200,250 $ 1,347,292
- -----------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) from Securities Transactions 373,137 (1,317,949)
- ------------------------------------------------------------------------------------------------------------------------
Net Unrealized Appreciation (Depreciation) on Securities 1,660,679 (1,188,059)
- ------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 3,234,066 (1,158,716)
- ------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------
Proceeds from Capital Invested 4,536,602 11,949,297
- -----------------------------------------------------------------------------------------------------------------------
Value of Capital Withdrawn (10,844,181) (17,209,743)
- ------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Capital Transactions (6,307,579) (5,260,446)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DECREASE IN NET ASSETS (3,073,513) (6,419,162)
========================================================================================================================
NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------
Beginning of Year 25,326,217 31,745,379
- -----------------------------------------------------------------------------------------------------------------------
End of Year $ 22,252,704 $ 25,326,217
=======================================================================================================================
</TABLE>
FINANCIAL HIGHLIGHTS
================================================================================
Contained below are selected ratios and supplemental data for each of the
periods presented for the Intermediate Tax Free Portfolio.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
For the period
July 20, 1992
For the year ended December 31, (Commencement
-------------------------------------------- of Operations) to
1995 1994 1993 December 31, 1992
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
RATIOS AND SUPPLEMENTAL DATA
Ratio of Net Investment Income to Average
Net Assets 4.97% 4.58% 4.29% 4.11%*
Ratio of Expenses to Average Net Assets 0.45% 0.45% 0.45% 0.45%*
Decrease Reflected in Above Ratio of Expenses
to Average Net Assets Due to Absorption of
Expenses by Bankers Trust 0.08% 0.14% 0.18% 0.43%*
Portfolio Turnover Rate 95% 118% 40% 132%
Net Assets, End of Period (000's omitted) $22,253 $25,326 $31,745 $9,995
</TABLE>
* Annualized
See Notes to Financial Statements on Page 13
<PAGE> 3
INTERMEDIATE TAX FREE PORTFOLIO 9
-----------------------------------------------------------
<TABLE>
<CAPTION>
SCHEDULE OF PORTFOLIO INVESTMENTS
====================================================================================
December 31, 1995
PRINCIPAL
AMOUNT DESCRIPTION VALUE
====================================================================================
<S> <C> <C>
ARIZONA - 5.42%
- ------------------------------------------------------------------------------------
$1,080,000 Phoenix Arizona Series C,
6.375%, 7/1/02 $ 1,206,328
====================================================================================
CALIFORNIA - 5.95%
- ------------------------------------------------------------------------------------
1,000,000 California State, 6.20%, 11/1/02 1,102,570
- ------------------------------------------------------------------------------------
205,000 California State Maturities,
5.90%, 9/1/02 222,179
- ------------------------------------------------------------------------------------
1,324,749
====================================================================================
CONNECTICUT - 3.78%
- ------------------------------------------------------------------------------------
500,000 Connecticut State Special Tax
Obligatory Revenue, Transportation
Infrastructure Series B, 5.90%, 9/1/05 545,560
- ------------------------------------------------------------------------------------
275,000 Connecticut State Special Tax
Obligatory Revenue, Transportation
Series A, 6.75%, 2/15/99 295,553
- ------------------------------------------------------------------------------------
841,113
====================================================================================
DELAWARE - 2.55%
- ------------------------------------------------------------------------------------
520,000 Delaware Transportation Authority,
6.10%, 7/1/02 566,322
====================================================================================
FLORIDA - 7.10%
- ------------------------------------------------------------------------------------
550,000 Dade County Florida Aviation
Revenue Reference Series E,
5.40%, 10/1/07 576,565
- ------------------------------------------------------------------------------------
1,000,000 Tampa Florida Water and Sewer
Revenue, 5.00%, 10/1/08 1,003,900
- ------------------------------------------------------------------------------------
1,580,465
====================================================================================
ILLINOIS - 8.19%
- ------------------------------------------------------------------------------------
700,000 Illinois State, 5.60%, 10/1/99 734,167
- ------------------------------------------------------------------------------------
1,000,000 Illinois State Sales Tax Series Q,
6.00%, 6/15/12 1,088,320
- ------------------------------------------------------------------------------------
1,822,487
====================================================================================
INDIANA - 1.49%
- ------------------------------------------------------------------------------------
300,000 Indiana University Revenue, Student
Fees Series H, 6.60%, 8/1/01 331,902
====================================================================================
KANSAS - 4.64%
- ------------------------------------------------------------------------------------
1,000,000 Kansas State Department of
Transportation Highway Revenue,
5.10%, 3/1/05 1,032,850
====================================================================================
KENTUCKY - 2.83%
- ------------------------------------------------------------------------------------
600,000 Kentucky State Turnpike Authority
Economic Development Road
Revenue, 5.625%, 7/1/10 629,562
====================================================================================
MICHIGAN - 3.40%
- ------------------------------------------------------------------------------------
500,000 Michigan State Building Authority
(AMBAC Insured) Series I,
6.00%, 10/1/02+ 545,515
- ------------------------------------------------------------------------------------
200,000 Michigan State Housing
Development Authority Single
Family Mortgage Revenue Series B,
6.30%, 12/1/03 210,414
- ------------------------------------------------------------------------------------
755,929
====================================================================================
NEBRASKA - 1.44%
- ------------------------------------------------------------------------------------
300,000 Nebraska Public Power District
Revenue, 5.70%, 1/1/05 320,799
====================================================================================
NEVADA - 2.40%
- ------------------------------------------------------------------------------------
500,000 Clark County, Nevada (AMBAC
Insured), 5.70%, 7/1/03+ 534,410
====================================================================================
NEW JERSEY - 1.09%
- ------------------------------------------------------------------------------------
225,000 New Jersey State Turnpike
Authority Series A, 6.00%, 1/1/05 241,654
====================================================================================
NEW YORK - 27.62%
- ------------------------------------------------------------------------------------
500,000 New York City, New York G.O.,
5.625%, 8/1/01 510,650
- ------------------------------------------------------------------------------------
400,000 New York City, New York G.O.,
Series B, Variable Rate Daily
Demand Note, 10/1/20 400,000
- ------------------------------------------------------------------------------------
700,000 New York City, New York G.O.,
Subseries A-5, Variable Rate Daily
Demand Note, 8/1/15 700,000
- ------------------------------------------------------------------------------------
500,000 New York City, New York G.O.,
Subseries B-2, Variable Rate Daily
Demand Note, 8/15/21 500,000
- ------------------------------------------------------------------------------------
1,000,000 New York State Environmental
Facility Corporation Pollution
Control Revenue, 5.75%, 6/15/10 1,070,670
- ------------------------------------------------------------------------------------
1,000,000 New York State G.O., Series B,
5.50%, 8/15/06 1,052,150
- ------------------------------------------------------------------------------------
1,000,000 New York State Power Authority
Revenue and General Purpose
Series CC (AMBAC Insured),
5.125%, 1/1/10+ 1,003,220
- ------------------------------------------------------------------------------------
900,000 Triborough Bridge and Tunnel
Authority New York Revenue
General Purpose Series A,
5.00%, 1/1/07 908,730
- ------------------------------------------------------------------------------------
6,145,420
====================================================================================
OHIO - 4.98%
- ------------------------------------------------------------------------------------
1,000,000 Ohio State Building Authority
Series A, 6.50%, 10/1/01 1,108,080
====================================================================================
TEXAS - 12.15%
- ------------------------------------------------------------------------------------
1,000,000 Austin, Texas Utility System
Revenue Series A, 6.00%, 11/15/04 1,094,760
- ------------------------------------------------------------------------------------
175,000 Garland, Texas Independent School
District, Series A, 6.40%, 2/15/98 179,645
- ------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Page 13
<PAGE> 4
INTERMEDIATE TAX FREE PORTFOLIO 10
-----------------------------------------------------------
<TABLE>
<CAPTION>
SCHEDULE OF PORTFOLIO INVESTMENTS
=============================================================================================================
December 31, 1995
PRINCIPAL
AMOUNT DESCRIPTION VALUE
=============================================================================================================
<S> <C> <C>
$ 500,000 Texas State, G.O., Series A,
6.00%, 10/1/06 $ 551,900
- -------------------------------------------------------------------------------------------------------------
300,000 Texas Water Reserve Finance
Authority Revenue, 7.30%,
8/15/04 323,373
- -------------------------------------------------------------------------------------------------------------
500,000 University of Texas, 6.50%,
8/15/01 553,515
- -------------------------------------------------------------------------------------------------------------
2,703,193
=============================================================================================================
WASHINGTON - 2.44%
- -------------------------------------------------------------------------------------------------------------
500,000 Washington State Series B,
6.00%, 5/1/02 543,370
=============================================================================================================
WISCONSIN - 0.96%
- -------------------------------------------------------------------------------------------------------------
200,000 Wisconsin State Transportation
Revenue Series A, 6.00%, 7/1/00 214,256
=============================================================================================================
TOTAL INVESTMENTS
(Cost $20,438,516) 98.43% $21,902,889
- -------------------------------------------------------------------------------------------------------------
Other Assets in Excess of Liabilities 1.57% 349,815
- -------------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $22,252,704
=============================================================================================================
</TABLE>
+ Insured by American Municipal Bond Assurance Corporation ("AMBAC")
See Notes to Financial Statements on Page 13
<PAGE> 5
INTERMEDIATE TAX FREE PORTFOLIO 13
-----------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
================================================================================
NOTE 1 - ORGANIZATION AND SIGNIFICANT
ACCOUNTING POLICIES
A. Organization
The Intermediate Tax Free Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940 (the "Act"), as amended, as an open-end
management investment company. The Portfolio was organized on December 11,
1991, as an unincorporated trust under the laws of New York and commenced
operations on July 20, 1992. The Declaration of Trust permits the Board of
Trustees (the "Trustees") to issue beneficial interests in the Portfolio.
B. Security Valuation
The Portfolio's investments are carried at fair market value as determined by
an independent pricing service at the end of each business day. Short-term
obligations with remaining maturities of 60 days or less, are valued at
amortized cost which with accrued interest approximates value. Securities for
which quotations are not available are stated at fair value as determined by
the Board of Trustees.
C. Security Transactions and Interest Income
Security transactions are accounted for on a trade date basis (date the order
to buy or sell is executed). Interest income is recorded on the accrual basis
and includes amortization of premium and discount on investments. Realized
gains and losses from securities transactions are recorded on the identified
cost basis.
All of the net investment income and realized and unrealized gains and losses
from the security transactions of the Portfolio are allocated pro rata among
the investors in the Portfolio.
D. Federal Income Taxes
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code. Therefore, no federal income tax provision is required.
E. Other
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts in the financial statements.
NOTE 2 - FEES AND TRANSACTIONS WITH AFFILIATES
The Portfolio has entered into an Administration and Services Agreement with
Bankers Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Portfolio in return for a fee computed daily and
paid monthly at an annual rate of 0.05 of 1% of the Portfolio's average daily
net assets. For the year ended December 31, 1995, this fee aggregated $12,072.
The Portfolio has entered into an Advisory Agreement with Bankers Trust. Under
this Advisory Agreement, the Portfolio pays Bankers Trust an advisory fee
computed daily and paid monthly at an annual rate of 0.40 of 1% of the
Portfolio's average daily net assets. For the year ended December 31, 1995,
this fee aggregated $96,572.
Bankers Trust has voluntarily undertaken to waive and reimburse expenses of the
Portfolio, to the extent necessary, to limit all expenses to 0.45 of 1% of the
average daily net assets of the Portfolio. For the year ended December 31,
1995, expenses of the Portfolio have been reduced by $18,572.
Certain trustees and officers of the Portfolio are also directors, officers
and/or employees of Signature. None of the trustees so affiliated received
compensation for services as trustee of the Portfolio. Similarly, none of the
Portfolio's officers received compensation from the Portfolio.
NOTE 3 - PURCHASES AND SALES OF INVESTMENT
SECURITIES
The aggregate cost of purchases and proceeds from sales of investments, other
than short-term obligations, for the year ended December 31, 1995, were
$20,691,846 and $22,854,169, respectively. The cost of investment for federal
income tax purposes was substantially the same as for financial reporting
purposes. The aggregate gross unrealized appreciation for all investments was
$1,464,373.
<PAGE> 6
INTERMEDIATE TAX FREE PORTFOLIO 14
-----------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To the Trustees and Holders of Beneficial Interest of
the Intermediate Tax Free Portfolio:
We have audited the accompanying statement of assets and liabilities of the
Intermediate Tax Free Portfolio, including the schedule of portfolio
investments, as of December 31, 1995, and the related statement of operations
for the year then ended, the statements of changes in 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 and for the period July 20, 1992
(commencement of operations) to December 31, 1992. These financial statements
and financial highlights are the responsibility of the Portfolio's management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Intermediate Tax Free Portfolio as of December 31, 1995, the results of its
operations, the changes in its net assets, and the financial highlights for the
periods referred to above, in conformity with generally accepted accounting
principles.
/s/ COOPERS & LYBRAND L.L.P.
Kansas City, Missouri
February 7, 1996
