Dear Shareholder:
We are pleased to present the Semi-Annual Report on The
Florida TaxFree Funds. In the period since our April 30, 1995
Annual Report, the economy has shown signs of slowing, causing
municipal bond prices to steadily increase, as investors
anticipate lower interest rates.
We at The Hough Group of Funds continue to believe that
either or both of The Florida TaxFree Funds represent prudent
investments for investors who seek to reduce their federal and
Florida intangible tax liabilities.
The Florida TaxFree Money Market Fund
Total net assets of the Fund continued to grow during the
last six months to $114.3 million as of October 31, 1995. This
compares with $105.6 million on April 30, 1995 and $83.3 million
on October 31, 1994.
The industry-respected firm of IBC/Donoghue compiles and
reports mutual fund performance and statistics. We are pleased
to report that, for the six month period ending October 31,
1995, The Florida TaxFree Money Market Fund has been
consistently ranked by IBC/Donoghue in the top two out of seven
Florida tax-free money market funds and the top twelve out of a
total 360 tax- free money market funds tracked by that firm each
month. Based on annualized expenses of .79%, had certain fees
and expenses not been reimbursed by the Adviser, the yield and
ranking would have been lower. Past performance, however, is no
guarantee of future results.
The 7 day average yield of the Fund was 3.72% as of October
31, 1995. For investors in the 36% federal tax bracket who have
Florida intangible assets of $200,000 or more, the tax
equivalent yield was 6.01%.
The Florida TaxFree ShortTerm Fund
As of October 31, 1995, total net assets for the Fund were
$13.3 million, compared with assets of $11.1 million on April
30, 1995. The portfolio had a dollar-weighted average maturity
of 2.46 years and a 30 day SEC yield of 3.87% on October 31,
1995. This yield equates to a tax equivalent yield of 6.25% for
a Floridian in the 36% federal tax bracket with Florida
intangible assets of $200,000 or more.
The Florida TaxFree ShortTerm Fund is a variable net asset
value mutual fund, and therefore the value of shares fluctuates
with the movements of the short-term municipal bond market. The
net asset value per share was $10.02 on October 31, 1995,
compared with $9.89 on April 30, 1995 and $9.79 on October 31,
1994, contributing to a 6.84% cumulative total return on the
Fund for the year ended October 31, 1995. The cumulative total
return is based on changes in the net asset value per share over
a given period and adjusted for dividends paid during that same
period. The Fund paid dividends of 21 cents per share for the
six month period ending October 31, 1995 and 42 cents per share
for the year then ended.
The cumulative total return on the Fund since its inception
November 22, 1993 through October 31, 1995 was 8.55%. This
represents a return of 4.41% on an annualized basis. Another
way of illustrating this return since inception would be that
$10,000 invested on November 22, 1993 would have grown to
$10,854.50 on October 31, 1995.
The Florida Intangible Tax
The Florida intangible tax is assessed against intangible
assets such as stocks, bonds, and mutual funds as of January 1
each year.
Each of The Florida TaxFree Funds will ordinarily invest at
least 65% of its assets in Florida obligations. While
state-specific tax-free funds can invest up to 35% in
out-of-state issues, your Funds' portfolio management committee
intends to keep the Funds fully invested in Florida issues at
the times appropriate to ensure that your investments in the
Funds remain completely exempt from the Florida intangible tax.
We appreciate your investment in The Florida TaxFree Funds
and urge you to contact us at 1-800-557-7555 whenever we can be
of assistance.
Sincerely,
W. Robb Hough, Jr.
President
The Hough Group of Funds
Variable Rate Demand Notes (57%) Principal Amount Value
Alachua County, FL, Hospital RB,
(Retirement Village), 3.75%, 01/01/21,
Kredietbank, N.V., LOC 1,400,000 1,400,000
Brevard County, FL HFA, Housing RB,
(EKS, Inc.), 3.70%,01/01/15,
Citibank, N.A., LOC 500,000 500,000
Broward County, FL HFA, Housing RB,
(Quiet Creek Apts. Project),4.15%,
02/01/05, John Hancock Mutual
Life Ins., Gty 500,000 500,000
Broward County, FL HFA, Housing RB,
(Lake Park Associates),4.00%, 12/01/10,
Society National Bank, LOC 1,000,000 1,000,000
Broward County, FL HFA, Housing RB,
(Fisherman's Landing Project), 4.00%,
11/01/07, Continental Casualty, Gty 2,000,000 2,000,000
Broward County, FL IDA, Industrial
Development RB, (Pavermodule Inc),4.15%,
09/01/04, NationsBank of GA, NA, LOC 460,000 460,000
Burnsville, MN, IDB, (Kinder Care
Learning Centers), Series C, 4.25%,
02/01/01,The Toronto-Dominion Bank, LOC 350,000 350,000
Clay County, FL Development Auth, IDB,
(Carlisle Corp.), 4.10%, 08/01/04, Trust
Company Bank, LOC 1,000,000 1,000,000
Collier County, FL HFA, Housing RB,
(River Reach), 3.90%,12/01/15, Morgan
Guaranty Trust Co., LOC 1,600,000 1,600,000
Collier County, FL IDA, Water and Sewer
RB, (Marco Island Utilities Project),
4.10%, 08/01/12, Sun Bank, N.A., LOC 900,000 900,000
Dade County, FL IDA, Pollution Ctrl RB,
(Florida Power & Light), 3.90%, 06/01/21 500,000 500,000
Dade County, FL IDA, Solid Waste RB,
(Montenay-Dade Ltd), 4.15%,12/01/10,
Banque Paribas, LOC 1,000,000 1,000,000
Dade County, FL HFA, Housing RB, (Star
Creek Apartments), Series 3, 4.00%,
06/01/05, First Union National Bank of
Florida, LOC 1,000,000 1,000,000
Dade County, FL HFA, Housing RB,
(Kendall Court Apartments),Series 4,
4.00%, 06/01/15, First Union National
Bank of Florida, LOC 1,000,000 1,000,000
Dade County, FL, Solid Waste RB,
(Montenay-Dade Ltd), 4.15%, 12/01/13,
Banque Paribas, LOC 3,200,000 3,200,000
Dade County, FL, Water & Sewer RB, 3.90%,
10/05/22, FGIC-Credit Provider, Industrial
Bank of Japan-Liq Provider, SBPA 1,400,000 1,400,000
Dade County, FL Health Facilities Auth,
Hospital RB, (Miami Children's Hospital),
4.20%, 09/01/20, Barnett Bank of South FL,
LOC 800,000 800,000
Dade County, FL IDA, IDB, (Dolphins
Stadium), Series A, 3.80%,01/01/16,
Citibank, N.A. & Hongkong & Shanghai
Banking Corp., LOC 425,000 425,000
Dade County, FL IDA, IDB, (Jay W. Lotspeich
Project), 4.15%, 12/01/06, Dai-Ichi Kangyo
Bank Ltd.,LOC 650,000 650,000
Dade County, FL IDA, Industrial Development
RB, (Pot Co.),4.15%, 12/01/06, Dai-Ichi
Kangyo Bank, Ltd., LOC 450,000 450,000
Dade County, FL IDA, IDB, (Schneider & Reiff
Project), 4.15%, 12/01/06, Dai-Ichi Kangyo
Bank Ltd., LOC 100,000 100,000
Dade County, FL IDA, IDB, (Arlington Sales),
4.15%, 06/01/08, ABN-AMRO Bank, N.V., LOC 95,000 95,000
Dade County, FL IDA, IDB, (Dynacolor Graphics
Project), 4.15%, 06/01/99, ABN-AMRO Bank,
N.V., LOC 605,000 605,000
Dade County, FL HFA, Housing RB, (Bermuda
Villas), 4.15%, 02/01/05, John Hancock Mutual
Life Ins., Gty 500,000 500,000
Dade County, FL HFA, Housing RB, (Mayan Tower
& Villas Project), 4.15%, 02/01/05, John
Hancock Mutual Life Ins., Gty 500,000 500,000
Darien, IL, IDB, (Kinder Care Learning
Centers), Series C, 4.25%, 02/01/01, The
Toronto-Dominion Bank, LOC 350,000 350,000
DeKalb, IL, IDB, (Kinder Care Learning
Centers), Series C, 4.25%, 02/01/01, The
Toronto-Dominion Bank, LOC 500,000 500,000
Escambia County, FL Health Facilities Auth,
(Florida Convalescent Ctrs Program), 4.05%,
01/01/11, The Toronto Dominion Bank, LOC 300,000 300,000
Eustis, FL Health Facilities Auth, Hospital
RB, (Waterman Medical Center), 3.85%,
12/01/15, Banque Paribas, LOC 5,500,000 5,500,000
Eustis, FL Health Facilities Auth, Hospital
RB, (Waterman Medical Center), 3.90%,
11/15/15, Banque Paribas, LOC 2,700,000 2,700,000
Florida HFA, Housing RB, (Clear Lake),
Series D, 4.00%, 12/01/09, Continental
Casualty, Gty 1,000,000 1,000,000
Florida HFA, Housing RB, (Parrot's Landing
Project), 1985 Series AA, 3.90%, 06/15/25,
FNMA Collateralized 1,500,000 1,500,000
Florida HFA, Housing RB, (Sun Point Cove Apts
Project), 1985 Series XX, 3.90%, 06/15/25,
FNMA Collateralized 1,500,000 1,500,000
Florida HFA, Housing RB, (Monterey Lake
Project), 1991 Series E,4.10%, 10/01/02,
Continental Casualty, Gty 2,000,000 2,000,000
Florida HFA, Housing RB, (Buena Vista),
Series MM, 4.15%, 11/01/07, New England
Mutual Life Ins., Gty 1,000,000 1,000,000
Florida HFA, Housing RB, (River Oaks Apt.
Project), Series TT, 4.00%, 12/01/07,
Citibank N.A., LOC 500,000 500,000
Florida HFA, Housing RB, (Blairstone),Series
VV, 4.00%,12/01/07, Citibank, N.A., LOC 1,000,000 1,000,000
Florida HFA, Housing RB, (Cypress Lake
Project), Series WW, 3.90%, 12/01/07,Citi
bank, N.A., LOC 300,000 300,000
Florida HFA, Housing RB, (Monterey Meadows
Apts.), 3.90%,12/01/08, Citibank, N.A., LOC 500,000 500,000
Florida HFA, Housing RB, (Huntington Place
Project), 4.05%, 12/01/08, The Sumitomo Bank,
Ltd., LOC 500,000 500,000
Florida HFA, Housing RB, (Hampton Lakes),
Series U, 4.15%, 07/01/08, CT General Life
Ins., Gty 500,000 500,000
Florida HFA, Housing RB, (Heritage Place II),
Series B, 4.25%, 12/01/08, Lincoln National
Corp., Gty 500,000 500,000
Florida HFA, Housing RB, (Town Colony),
Series EE, 4.15%, 09/01/08, CT General Life
Ins., Gty 1,000,000 1,000,000
Hillsborough County, FL, Pollution Ctrl RB,
(Reynolds Metals Company), 3.85%, 12/01/15,
National Westminster Bank, PLC, LOC 500,000 500,000
Hillsborough County, FL IDA, Pollution Ctrl
RB, (Tampa Electric Co.), 4.00%, 11/01/20 600,000 600,000
Hillsborough County, FL IDA, IDB, (Seri-
graphic Arts, Inc.), 4.15%, 09/01/07,
Dai-Ichi Kangyo Bank Ltd., LOC 600,000 600,000
Hillsborough County, FL IDA, Industrial
Development RB, (Leslie Controls Inc.),
4.10%, 08/01/19, First Union National
Bank of NC, LOC 1,000,000 1,000,000
Jackson County, FL, Industrial RB, (UniMac
Co. Project), 4.15%, 06/01/08, ABN-AMRO
Bank, N.V., LOC 400,000 400,000
Jacksonville, FL Health Facilities Auth,
Hospital RB, (River Garden/The Coves),
4.00%, 08/01/19, First Union National
Bank of NC, LOC 500,000 500,000
Jacksonville, FL, IDB, (Columbia Paving
Inc.), 4.00, 09/01/07, Dai-Ichi Kangyo Bank
Ltd., LOC 700,000 700,000
Jacksonville, FL IDB, (Coastal Industries
Inc), 4.15%, 08/01/08, ABN-AMRO Bank,
N.V., LOC 575,000 575,000
Lake County, FL IDA, IDB, (Novelty Crystal
Corp.), 4.15%, 03/01/09, ABN-AMRO
Bank, N.V., LOC 400,000 400,000
Lake County, FL IDA, IDB, (Novelty Crystal
Corp.), 4.20%, 06/01/12, Barnett Bank,
N.A., LOC 240,000 240,000
Lee County, FL HFA, Housing RB, (Forestwood
Apts. Project), Series 1995A, 3.90%,
06/15/25, FNMA Collateralized 1,500,000 1,500,000
Manatee County, FL, Pollution Ctrl RB,
(Florida Power & Light), 4.00%, 09/01/24 800,000 800,000
Martin County, FL, Pollution Ctrl RB,
(Florida Power & Light), 4.00%,
09/01/24 600,000 600,000
Martin County, FL, Solid Waste RB, (Florida
Power & Light), 4.00%, 01/01/27 450,000 450,000
Monroe County, FL IDA, IDB, (Beverly
Enterprises), 3.90%, 06/01/10, Morgan
Guaranty Trust Co., LOC 490,000 490,000
Orange County, FL HFA, Housing RB, (Sutton
Place Ltd), Series B, 3.90%, 10/01/08,
NationsBank, N.A., LOC 400,000 400,000
Palm Bay, FL, IDB, (Accudyne Corporation
Project), Series 1995, 4.20%, 07/01/20,
First Union National Bank of NC, LOC 1,500,000 1,500,000
Palm Beach County, FL, IDB, (Florida Conva-
lescent Centers), 4.25%, 11/01/11, SunBank,
N.A., LOC 500,000 500,000
Palm Beach County, FL, IDB, (Palm Beach
Jewish Comm Ctr), 3.95%, 05/01/02, SunBank,
N.A., LOC 400,000 400,000
Pinellas County, FL HFA, Housing RB, (Lynn
Lake II), 4.00%, 07/01/11, NationsBank of
Georgia, N.A., LOC 1,200,000 1,200,000
Pinellas County, FL HFA, Housing RB, (Fox-
bridge Apts Project), Series 1995 A, 3.90%,
06/15/25, FNMA Collateralized 500,000 500,000
Pinellas County, FL, Health Facilities Auth,
Hospital RB, (Bayfront Medical Center, Inc.),
3.90%, 06/01/09 FGIC Insured, Barnett Bank,
of S. FL, N.A. - Liquidity Provider, SBPA 500,000 500,000
Polk County, FL IDA, IDB, (Protel Inc.
Project), 4.15%, 09/01/07, Dai-Ichi Kangyo
Bank, Ltd., LOC 450,000 450,000
Putnam County, FL Development Auth,
Pollution Ctrl RB, (Florida Power & Light), 4.00%, 09/01/24 580,000 580,000
Riviera Beach, FL, IDB, (Dade Paper & Bag
Co.), 4.00%, 08/01/01,ABN-AMRO Bank, N.V, LOC 575,000 575,000
St. Johns County, FL, Hospital RB,
(Flagler Hospital), 3.90%, 08/01/16,
Kredietbank, N.V., LOC 700,000 700,000
St. Lucie County, FL, IDB, (Florida
Convalescent Center Project), 3.85%,
1/01/11, The Toronto-Dominion Bank, LOC 400,000 400,000
Southeast Volusia, FL Hospital District,
Hospital RB, (Bert Fish Medical Center),
4.00%, 05/01/22, SouthTrust Bank, LOC 1,000,000 1,000,000
Sumter County, FL IDA, IDB, (Great
Southern Wood, FL, Inc.), 4.20%, 04/01/05,
SouthTrust Bank, LOC 700,000 700,000
Tamarac, FL, IDB, (Tampa Bay Business Center,
Inc. Project),4.20%, 08/01/15, NationsBank
of FL, N.A., LOC 1,000,000 1,000,000
Virginia State Housing Development Auth,
Housing RB, (AHC Service Corp), 4.05%,
09/01/17, Mitsubishi Trust & Banking
Corp, LOC 500,000 500,000
Volusia County, FL Health Facilities Auth,
Hospital RB,(Southwest Volusia Healthcare
Corp), 3.85%, 11/15/23, First Union
National Bank of NC, LOC 1,300,000 1,300,000
Volusia County, FL IDA, IDB, (Southern
States Utilities Inc.), 4.10%, 06/01/14,
Sun Bank, N.A., LOC 1,000,000 1,000,000
Volusia County, FL IDA, IDB, (RS Displays,
Inc.), 4.15%, 06/01/09, ABN-AMRO Bank,
N.V., LOC 850,000 850,000
Total Variable Rate Demand Notes* (Cost $66,495,000)
$66,495,000
* These securities have maturities greater than one year but are
redeemable upon demand. For purposes of calculating the Fund's
weighted average maturity, the length to maturity of these
investments is considered to be the greater of the period until
the interest rate is adjusted or until the principal can be
recovered by demand. Principal
Municipal Bonds (43%) Amount Value
Broward County, FL, Rfdg RB, 7.875%,
07/01/96, Pre-refunded @ 102 50,000 52,269
Broward County, FL, GO Bond, Series C,
4.75%, 01/01/96 200,000 200,143
Broward County, FL Health Facilities Auth,
Hospital RB, (Holy Cross Hospital), 9.00%,
12/01/95, Pre-refunded @ 102 55,000 56,272
Broward County, FL School Board, Certifi-
cates of Participation, Series A, 6.45%,
07/01/96, MBIA Insured 150,000 152,030
Broward County, FL School District,
Revenue Anticipation Notes,4.50%,
4/29/96 2,000,000 2,008,112
Chicago, IL, General Obligation Tender
Notes, Series 1995A, 4.60%, 10/31/95,
Morgan Guaranty Trust Co., LOC,
Mandatory Tender @ 100 1,000,000 1,000,000
Clermont County, OH, Econ Development
Rfdg RB, (John Q. Hammans Project-
Clermont Hills) 4.80%, 11/01/95, Optional
Tender @ 100, Fifth Third Bank, LOC 395,000 395,000
Cobb County & Marietta, GA Water Auth,
Water & Sewer RB, 9.25%, 11/01/95,
Pre-refunded @ 102 25,000 25,500
Cook County, IL, GO Bond, Series B, 4.20%,
11/15/95, FGIC Insured 100,000 100,003
Dade County, FL, Special Obligations,
(Miami Beach ConventionCenter), Series A,
7.50%, 12/01/95, FGIC Insured 1,000,000 1,002,299
Escambia County, FL, Tax Increment Bond,
Series A, 6.70%, 01/01/96, FGIC Insured 25,000 25,076
Escambia County, FL Utilities Auth,
Electric Util RB, Series A,9.60%, 01/01/96,
Pre-refunded @ 102 1,000,000 1,029,255
Florida HFA, Homeowner Mortgage & RB, 1995
Series 1A, 3.85%, 07/01/96 140,000 140,000
Florida Local Government Financing Comm,
GO Bond, Commercial Paper, 3.75%, 11/16/95,
First Union National Bank of Florida, LOC 500,000 500,000
Florida, State of, Pollution Ctrl RB, Series
J, 5.70%, 07/01/96 50,000 50,499
Florida, State of, Pollution Ctrl Rfdg RB,
Series W, 6.80%, 07/01/96 75,000 76,307
Florida State Board of Education, GO Bond,
Series A, 6.25%, 01/01/96 95,000 95,258
Florida State Board of Education, GO Bond,
Series 1988, 7.50%, 06/01/96, Pre-refunded
@ 102 80,000 83,188
Florida State Board of Education, GO Bond,
Series B, 5.80%, 06/01/96 2,100,000 2,124,945
Florida State Board of Education, GO Bond,
Series B, 5.625%, 06/01/96 600,000 605,504
Florida State Board of Education, GO Bond,
Series B, 5.30%, 06/01/96 1,320,000 1,330,788
Florida State Board of Education, GO Bond,
Series A, 5.00%, 06/01/96 1,065,000 1,071,612
Florida State Board of Education, GO Bond,
Series B, 5.00%, 06/01/96 1,000,000 1,007,626
Florida State Board of Education, Capital
Outlay Rfdg GO Bond, Series C, 5.125%,
06/01/96 1,000,000 1,007,953
Florida State Division of Bond Finance,
Dept of General Services, Refunding RB,
(Save Our Coast), Dept of Natural Resources,
6.80%, 07/01/96,Pre-refunded @ 102 150,000 155,775
Florida Municipal Power Agency, Electric
Util RB, (Stanton Project), 4.05%, 10/01/96,
MBIA Insured 50,000 50,776
Florida Municipal Power Agency, Commercial
Paper, Pooled Loan Project, 3.50%, 12/05/95,
First Union National Bank of NC, LOC 400,000 400,000
Fort Myers, FL, Public Improv RB, Series C,
5.00%, 06/01/96, AMBAC Insured 160,000 160,812
Gainesville, FL, Electric Util RB, Commercial
Paper, (Utility System C), 3.50%, 11/09/95 1,051,000 1,051,000
Greater Orlando Aviation Auth, Airport RB,
Series B, Commercial Paper, 3.85%, 11/03/95,
Morgan Guaranty Trust Co.,
Liquidity Provider 1,000,000 1,000,000
Greater Orlando Aviation Auth, Airport RB,
Series B, Commercial Paper, 3.90%, 11/27/95,
Morgan Guaranty Trust Co., Liquidity
Provider 1,000,000 1,000,000
Greater Orlando Aviation Auth, Airport
RB, Series B, Commercial Paper, 3.90%,
11/28/95, Morgan Guaranty Trust Co.,
Liquidity Provider 1,000,000 1,000,000
Harris County, TX, Transportation RB,
Series 84-C, 9.00%, 12/01/95, Escrowed
to Maturity 50,000 50,180
Hawaii, State of, GO Bond, Series BD,
8.00%, 11/01/95, Pre-refunded @ 101.50 1,400,000 1,421,000
Hernando County, FL School District, GO
Bond, 6.60%, 08/01/96, Pre-refunded @ 102 25,000 25,920
Hillsborough County, FL Port District, Port
RB, 4.45%, 06/01/96, FSA Insured 150,000 150,000
Hillsborough County, FL, Public Improv RB,
Capital Improvement Program, Sub Series 2,
8.20%, 02/01/96, Pre-refunded @ 102 550,000 565,417
Hillsborough County, FL, Public Improv RB,
Capital Improvement Program, BMTF, Mode A
Sub Series 2, 7.70%, 02/01/96,
Pre-refunded @ 102 1,000,000 1,028,711
Hillsborough County, FL School Board,
Municipal Lease Obligation, (Master Lease
Program), 3.80%, 07/01/96, AMBAC Insured 1,375,000 1,375,436
Indian River County, FL School District,
Tax Anticipation Notes, 4.00%, 06/30/96 500,000 500,937
Jacksonville, FL Electric Auth, Electric
Util RB, Commercial Paper, 3.70%, 12/04/95,
Morgan Guaranty Trust Co., LOC 2,000,000 2,000,000
Lake County, FL, Sales Tax RB, 7.40%,
12/01/95, Pre-refunded @ 102 25,000 25,538
Lee County, FL, Road Improvement Rfdg RB,
3.85%, 10/01/96, FGIC Insured 350,000 350,035
Martin County, FL School District, Tax
Anticipation Notes, 4.25%, 06/08/96 1,000,000 1,002,314
Miami, FL, Tax Anticipation Notes, 4.50%,
09/27/96 1,000,000 1,006,095
Monroe County, FL School District, Tax
Anticipation Notes, 4.00%, 06/05/96 1,250,000 1,250,000
North Broward, FL, Hospital RB, 7.60%,
01/01/96, Pre-refunded @ 103 45,000 46,493
North Broward, FL, Hospital RB, 8.00%,
01/01/96, Pre-refunded @ 103 50,000 51,724
Orange County, FL, Public Improv RB,
Series B, 4.20%, 10/01/96, AMBAC Insured 485,000 486,591
Orange County, FL School District, Revenue
Anticipation Notes, Series 1995, 4.50%,
6/25/96 1,500,000 1,507,957
Orange County, FL School District, Tax
Anticipation Notes, Series 1995, 4.50%,
10/16/96 1,000,000 1,006,445
Orange County, FL, GO Bond, Commercial
Paper, 3.45%, 11/06/95, NationsBank,
N.A., IRC 400,000 400,000
Orange County, FL HFA, Multifamily Housing
RB, (Oakwood Project), 4.20%, 10/01/96,Fleet
Bank, N.A., LOC, Mandatory Tender @ 100 600,000 600,000
Orange County, FL HFA, Housing RB,
(Sunlake Apartments), 4.50%, 11/01/95,
Dai-Ichi Kangyo Bank, Ltd., LOC,
Mandatory Tender @ 100 1,000,000 1,000,000
Orlando FL, Water & Sewer RB, Commercial
Paper, 3.80%, 12/01/95, Union Bank of
Switzerland, LOC 1,500,000 1,500,000
Orlando FL, Water & Sewer RB, Commercial
Paper, 3.60%, 11/08/95, Union Bank
of Switzerland, LOC 900,000 900,000
Osceola County, FL School Board, Master
Lease Certificates of Participation,
3.75%, 06/01/96, AMBAC Insured 500,000 500,000
Palm Beach County, FL, Criminal Justice
Facilities RB, 6.50%, 06/01/96, FGIC Insured 150,000 151,908
Palm Beach County, FL Public Building Corp,
Public Improv RB, 7.10% Escrowed to Maturity 200,000 203,030
Palm Beach County, FL, GO Bond, 4.90%,
01/01/96, AMBAC Insured 500,000 500,000
Palm Beach County, FL School District, Tax
Anticipation Notes, Series 1995, 4.50%,
09/27/96 1,655,000 1,664,452
Pennsylvania State Higher Education
Facilities Auth, Higher Education RB,
(Drexel University, 1st Series), 7.70%,
11/01/95, Pre-refunded @ 102 50,000 51,000
Pinellas County, FL, Water & Sewer RB,
Series 1995, 4.50%, 10/01/96, AMBAC
Insured 1,000,000 1,006,520
Putnam County, FL Development Auth, Pollu-
tion Ctrl RB, (Seminole Electric Cooperative,
Inc.), Series D, 3.40%, 12/15/95, National
Rural Utilities Cooperative Finance
Corporation, Gty, Mandatory Tender @ 100 1,500,000 1,500,000
Putnam County, FL Development Auth, Pollution
Ctrl RB, (Seminole Electric Cooperative,
Inc.), Series H-3, 3.75%, 03/15/96, National
Rural Utilities Cooperative Finance
Corporation, Gty, Mandatory Tender @ 100 1,000,000 1,000,000
Regional Transportation Auth, IL, Transpor-
tation RB, Series A, 5.25%, 11/01/95,
FGIC Insured 50,000 50,000
St. Lucie County, FL, Commercial Paper,
(Florida Power & Light), 4.20%, 12/07/95 1,000,000 1,000,000
Sarasota County, FL Public Hosp, Commercial
Paper, Series A, (Sarasota Memorial
Hospital),3.60%, 12/08/95, The Sumitomo
Bank, Ltd., LOC 345,000 345,000
Sarasota County, FL Public Hosp, Commercial
Paper, Series B, (Sarasota Memorial
Hospital), 3.75%, 12/05/95, The Sumitomo
Bank, Ltd., LOC 1,000,000 1,000,000
Sarasota County, FL Public Hosp, Commercial
Paper, Series C, (Sarasota Memorial
Hospital), 4.00%, 01/05/96, Union
Bank of Switzerland, LOC 300,000 300,000
St. Petersburg, FL, Util Tax RB, 7.10%,
06/01/96, Pre-refunded @102 1,000,000 1,038,610
Sunshine State Gov Fin Comm, Commercial
Paper, 3.70%, 12/01/95, LOC: Union Bank
of Switzerland, National Westminster Bank,
PLC, Morgan Guaranty Trust Co. 2,000,000 2,000,000
Tulsa County, OK Industrial Auth, Hospital
RB, (Laureate Psychiatric Clinic), 6.60%,
12/15/95, Escrowed to Maturity 100,000 100,297
Utah State Board of Regents, Student Loan
RB, 4.45%, 11/01/95, AMBAC Insured 155,000 155,000
Virginia Housing Development Auth, Housing
RB, (Commonwealth Mortgage Bonds, Series D,
Subseries D-STEM-1 3.55%, 11/16/95,
Mandatory Tender@ 100 1,000,000 1,000,000
Total Municipal Bonds (Cost $50,774,612)
$50,774,612
Total Investments (100%) (Cost $117,269,112)
$117,269,612
Summary of Ratings:
AAA/Equivalent 91%
AA/Equivalent 9%
Average Portfolio Maturity: 62 Days
7 Day Average Yield: 3.72%
Portion of portfolio subject to the
Federal Alternative Minimum Tax: 18.75%
Principal
Variable Rate Demand Notes (5%) Amount Value
Hillsborough County, FL IDA, Pollution Ctrl
RB, (Tampa Electric Co.), 4.00%, 11/01/20 100,000 100,000
Martin County, FL, Pollution Ctrl RB,
(Florida Power & Light), 4.05%, 01/01/27 400,000 400,000
St. Lucie County, FL, Pollution Ctrl RB,
(Florida Power & Light), 3.80%, 01/01/27 200,000 200,000
$700,000
Total Variable Rate Demand Notes* (Cost $700,000)
* These securities have maturities greater than one year but
are redeemable upon demand. For purposes of calculating the
Fund's weighted average maturity, the length to maturity of
these investments is considered to be the greater of the period
until the interest rate is adjusted or until the principal can
be recovered by demand.
Principal
Municipal Bonds (95%) Amount Value
Alachua County, FL Health Facilities Auth,
Hospital RB, (Shands Hospital at the
University of FL), 6.00%, 12/01/97,
MBIA Insured 150,000 156,552
Bradenton, FL, Special Obligation Bond,
9.00%, 10/01/97, Escrowed to Maturity 150,000 164,543
Broward County, FL Health Facilities Auth,
Hospital RB, (Holy Cross Hospital), 9.00%,
12/01/95, Pre-refunded @ 102 55,000 56,335
Broward County, FL HFA, Single Family
Mortgage RB, 6.80%, 09/01/96, GNMA
Collateralized 70,000 71,383
Broward County, FL, Water & Sewer RB,
Zero Coupon, 10/01/99, AMBAC Insured 50,000 42,245
Cape Coral, FL, Water and Sewer Rfdg RB,
7.10%, 02//15/98, Pre-refunded @ 100.50 10,000 10,251
Cape Coral, FL, Water and Sewer Rfdg RB,
4.00%, 01/01/97, FGIC Insured 65,000 65,211
Clearwater, FL, Public Service Tax & Bridge
RB, 8.75%, 12/01/98, MBIA Insured 100,000 102,382
Clearwater, FL, Water & Sewer RB, Series B,
6.75%, 12/01/98, Pre-refunded @ 103.50 50,000 55,362
Collier County, FL School Board, Municipal
Lease Obligation, Certificate of Parti-
cipation, 4.00%, 02/15/99, FSA Insured 100,000 99,507
Dade County, FL, Pub Improv RB, 6.90%,
06/01/98, FGIC Insured 100,000 107,148
Dade County, FL, GO Bond, 7.40%, 07/01/97
75,000
75,744
Dade County, FL, GO Bond, Series G, 5.50%,
07/01/99 250,000 255,455
Dade County, FL Aviation Auth, Airport RB,
Series R, 7.125%, 10/01/99 210,000 217,753
Dade County, FL Aviation Auth, Airport RB,
Series R, 7.20%, 10/01/00 250,000 260,013
Dade County, FL Aviation Auth, Airport RB,
Series D, 4.00%, 10/01/96,AMBAC Insured 100,000 100,230
Dade County, FL Education Facilities Auth,
Higher Ed RB, (St. Thomas Univ), 7.125%,
01/01/00, Escrowed to Maturity 40,000 43,700
Dade County, FL Health Facilities Auth,
Hospital RB, (Baptist Hospital Miami
Project), 4.00%, 05/15/97, MBIA Insured 65,000 65,134
Dade County, FL, Guaranteed Entitlement
Spl Assmt Bonds, Series B, Zero Coupon,
02/01/00, MBIA Insured 250,000 207,265
Dade County, FL HFA, Single Family Mortgage
RB, Series B, 7.50%, 03/01/99, GNMA
Collateralized 10,000 10,345
Dade County, FL, Water & Sewer RB, 4.75%,
10/01/99, FGIC Insured 100,000 101,893
Duval County, FL HFA, Single Family
Mortgage RB, 7.80%, 12/01/98, GNMA
Collateralized 25,000 25,992
Escambia County, FL HFA, Housing RB,
(Alpine Village Project), 4.20%, 10/01/97,
Harbor Fed S&L Assn., Collateralized LOC,
Mandatory Tender @ 100 100,000 100,000
Escambia County, FL, Pub Improv RB,
4.25%, 01/01/97 110,000 109,685
Escambia County, FL, Pub Improv RB,
4.75%, 01/01/99 220,000 220,627
Escambia County, FL School Board
Municipal Lease Obligation, Certificate
of Participation, 5.80%, 02/01/00, FSA
Insured 50,000 52,963
Florida HFA, Housing RB, Single Family
Mortgage RB, Series A, 5.70%, 01/01/01,
GNMA Collateralized 100,000 104,068
Florida HFA, Housing RB, Series 1983F,
5.35%, 06/01/99, Connecticut General
Life Ins., Gty, Mandatory Tender @ 100 250,000 254,763
Florida HFA, Homeowner Mortgage & RB,
1995 Series 1B, 4.75%,07/01/01 120,000 120,169
Florida HFA, Housing RB, (Lake Carlton
Arms), 7.375%, 12/01/99,National Life
Ins. Co., Gty, Mandatory Tender @ 100 65,000 66,471
Florida HFA, Housing RB, (Crossings
Project), 6.625%, 02/01/97,Connecticut
General Life Ins, Gty, Mandatory Tender
@ 100 55,000 56,654
Florida State Board of Education, GO Bond,
Series A, Zero Coupon, 06/01/00,
Pre-refunded @ 37.658 100,000 30,886
Florida State Board of Education, GO Bond,
6.10%, 06/01/00 25,000 26,223
Florida State Board of Education, GO Bond,
Series A, 7.25%, 06/01/00,Pre-refunded @102 200,000 227,230
Florida State Board of Education, GO Bond,
Series C, 5.90%,05/01/00, Escrowed to
Maturity 25,000 25,563
Florida State Board of Education, GO Bond,
Series B1, 7.875%, 06/01/98,Pre-refunded
@ 102 100,000 110,974
Florida State Board of Education, GO Bond,
Series C, 5.125%,06/01/00 200,000 207,508
Florida State Department of General Services,
Division of Facilities Management, (FL
Facilities Pool), Series B, 4.70%, 09/01/01,
AMBAC Insured 200,000 203,768
Florida State Department of General Services,
Division of Facilities Management, (FL
Facilities Pool), Series C, 4.50%, 09/01/00,
FSA Insured 100,000 101,164
Florida State Division of Bond Finance,
Department of General Services, GO Bond,
(Dept of Natural Resources-Preservation
2000), Series A, 5.80%, 07/01/01, MBIA
Insured 90,000 96,532
Florida State Division of Bond Finance,
Department of General Services, GO Bond,
(Department of Environmental Protection,
Save Our Coast), 4.30%, 07/01/99, AMBAC
Insured 100,000 100,332
Florida State Turnpike Auth, Transportation
RB, 7.50%, 07/01/01 250,000 279,408
Florida State Turnpike Auth, Transportation
RB, 7.50%, 07/01/99, Pre-refunded @ 102 100,000 112,669
Florida State Turnpike Auth, Transportation
RB, 7.50%, 07/01/99, Pre-refunded @ 102 40,000 45,068
Florida State Department of Transportation
Turnpike Revenue Bonds, Transportation RB,
5.50%, 07/01/01, AMBAC Insured 150,000 158,649
Ft. Myers, FL, Electric Utility Rfdg RB,
Series B, Zero Coupon, 10/01/99,
Pre-refunded @ 26.012 40,000 8,800
Gainesville, FL Util System, Electric Util
RB, Series A, 5.90%, 10/01/00 50,000 53,418
Hillsborough County, FL Aviation Auth,
Airport RB, (Tampa International Arpt),
Series A, 6.00%, 10/01/96 100,000 101,627
Hillsborough County, FL Aviation Auth,
Airport RB, (Tampa International Arpt),
6.30%, 10/01/00, FGIC Insured 75,000 81,408
Hillsborough County, FL, Pub Improv RB,
(County Center Project), Second Series,
6.00%, 07/01/00 100,000 107,156
Hillsborough County, FL IDA, IDB, (Univer-
sityComm Hosp, Inc.), 4.75%, 08/15/98,
MBIA Insured 100,000 101,429
Hillsborough County, FL IDA, IDB,
(University Comm Hosp, Inc.), 4.85%,
08/15/99, MBIA Insured 100,000 101,864
Hillsborough County, FL, Water & Sewer
RB, 8.20%, 02/01/96, Pre-refunded @ 102 100,000 103,054
Hillsborough County, FL School Board,
Certificates of Participation, 4.60%,
07/01/97, MBIA Insured 100,000 100,987
Hillsborough County, FL, Solid Waste
& Res Recovery RB, 4.50%, 10/01/96,
MBIA Insured 100,000 100,606
Hillsborough County, FL, Solid Waste
& Res Recovery RB, 4.50%, 10/01/97,
MBIA Insured 100,000 100,967
Homestead, FL, Special Insurance, Spec
Assess Bond, (Hurricane Andrew), 4.20%,
03/01/96, Escrowed to Maturity 5,000 5,017
Homestead, FL, Special Insurance, Spec
Assess Bond, (Hurricane Andrew), 4.20%,
03/01/96, MBIA Insured 110,000 110,362
Jacksonville, FL Electric Auth, Electric
Util RB, (St. Johns River Power Park),
Series 3-B, 4.20%, 10/01/99 100,000 100,320
Jacksonville, FL Electric Auth, Electric
Util RB, (St. John's River Power Park),
Issue 1, Series 2, 9.40%, 10/01/96 100,000 104,942
Jacksonville, FL Electric Auth, Electric
Util RB, Series Two 1987A-2, 6.80%,
10/01/97 100,000 105,377
Jacksonville, FL Electric Auth, Electric
Util RB, Series Two 1987A-1, 7.40%,
10/01/97 50,000 53,665
Jacksonville, FL Electric Auth, Electric
Util RB, 7.50%, 10/01/97, Pre-refunded
@ 101.50 100,000 107,897
Jacksonville, FL Electric Auth, Electric
Util RB, (St. Johns River Power Park),
Series 3-A, 6.50%, 04/01/97,
Pre-refunded @ 101.50 50,000 52,455
Jacksonville, FL Health Facilities Auth,
Hospital RB, (Riverside Hospital), 7.25%,
10/01/98 30,000 31,826
Jacksonville, FL Health Facilities Auth,
Hospital RB, (St. Lukes Hospital
Association), 5.90%, 11/15/96 100,000 102,148
Jacksonville, FL Port Auth, Airport RB,
7.00%, 10/01/96, AMBAC Insured 80,000 82,274
Jacksonville, FL, Sales Tax RB, (River
City Renaissance Project), Series 1995,
6.00%, 10/01/00, FGIC Insured 150,000 161,945
Kentucky State Property & Bldgs Commission,
Public Improv RB, (Project 26),
Second Series, 6.90%,12/01/95 100,000 100,280
Kentucky State Property & Bldgs Commission,
Public Improv RB, (Project 34),
Second Series, 6.80%,12/01/95 50,000 50,136
Key West, FL Util Board, Electric Util RB,
Zero Coupon (Step to9.75% on 10/01/96),
04/01/00, Pre-refunded @ 103 200,000 227,560
Lakeland, FL Hospital System, Hospital RB,
(Lakeland Regional Med Cent), 4.10%,
11/15/95, FGIC Insured 25,000 25,003
Lakeland, FL, Electric Util RB, (Lakeland,
FL Water), 6.45%, 10/01/96 75,000 76,797
Largo, FL, Hospital RB, (SunCoast Hospital),
5.25%, 03/01/96 185,000 185,337
Lee County, FL School Board, Certificates
of Participation, .75%, 08/01/98, FSA
Insured 100,000 101,306
Lee County, FL School Board, Certificates
of Participation, 4.875%, 08/01/99, FSA
Insured 100,000 102,715
Lee County, FL Hospital Board, Hospital RB,
(Lee Memorial Hospital), 6.85%, 04/01/96,
BIG Insured 100,000 101,221
Lee County, FL Hospital Board, Hospital RB,
(Lee Memorial Hospital), 7.10%, 04/01/98,
BIG Insured 50,000 53,372
Leesburg, FL, Hospital RB, (Leesburg
Regional Medical Center), 4.30%, 07/01/96 105,000 104,892
Leon County, FL, Capital Improv RB,
8.10%, 10/01/96, Pre-refunded @ 102 30,000 31,732
Leon County, FL School District, GO Bond,
6.55%, 07/01/97, Pre-refunded @ 102 50,000 53,019
Levy County, FL School Board, Certificates
of Participation, Municipal Lease
Obligation, 5.00%, 07/01/00, Asset
Guaranty Insured 100,000 102,246
Martin County, FL, GO Bond, 6.50,%,
02/01/00, Pre-refunded @ 102 50,000 54,980
Martin County, FL HFA, Hospital RB, (Martin
Memorial Hospital), Series A, 7.00%,
11/15/00, MBIA Insured 75,000 84,049
Miami Beach, FL, GO Bond, 6.35%, 09/01/96,
Pre-refunded @ 102 100,000 104,012
Miami Beach, FL Redevelopment Agcy, Tax
Increm RB, (City Center/Historic Conv
Village), 4.00%, 12/01/96 150,000 149,460
Miami Beach, FL Redevelopment Agcy, Tax
Increm RB, (City Center/Historic Conv
Village), 4.20%, 12/01/97 100,000 99,425
Miami Beach, FL, Water & Sewer RB, Series
1995, 4.20%, 09/01/96, FSA Insured 200,000 201,148
Miami, FL, GO Bond, 7.00%, 06/01/96, FGIC
Insured 25,000 25,467
Miami, FL, GO Bond, 7.50%, 08/01/96 100,000 102,704
Miami, FL, Parking Facilities,
Transportation RB, 4.50%, 10/01/98 100,000 100,403
Nassau County, FL, Certificates of
Indebtedness, 5.50%, 12/01/95 89,000 89,057
Nassau County, FL, Certificates of
Indebtedness, 5.50%, 12/01/96 107,000 107,351
Okaloosa County, FL, Water & Sewer RB,
7.15%, 01/01/99, Pre-refunded @ 102 50,000 55,141
Okeechobee, FL Util Auth, Util Sys
Acquisition & Improvement RB,Series
1995,4.25%, 10/01/00, MBIA Insured 100,000 100,261
Orange County, FL Health Facilities Auth,
Hospital RB, (Adventist Health Systems/
Sunbelt Obligated Group), 4.40%, 11/15/97,
AMBAC Insured 100,000 101,048
Orange County, FL HFA, Single Family
Mortgage RB, 5.50%, 10/01/00,
GNMA/FNMA Collateralized 100,000 103,649
Orange County, FL HFA, Housing RB, (Post
Lake (Orlando)), 7.50%, 01/01/98,
The Bank of Tokyo, Limited, LOC 50,000 52,042
Orlando, FL Util Commission, Sub-Series C,
7.00%, 10/01/99, Pre-refunded @ 102 50,000 55,778
Orlando, FL Waste Water System, Solid
Waste RB, Series B, 7.50%, 10/01/96,
Pre-refunded @102 45,000 47,358
Orlando-Orange County Expressway Auth,
FL, Transportation RB, 7.50%,
07/01/96, Pre-refunded @ 102 130,000 135,671
Orlando-Orange County Expressway Auth,
FL, Transportation RB, 7.25%,
07/01/96, Pre-refunded @ 102 50,000 52,100
Orlando-Orange County Expressway Auth,
FL, Transportation RB, 4.50%,
07/01/99, FGIC Insured 100,000 101,412
Palm Beach County, FL, Criminal Justice
Facilities RB, 6.60%, 06/01/97, FGIC
Insured 50,000 51,961
Palm Beach County, FL, Pub Improv RB,
7.25%, 10/01/96, Pre-refunded @ 102 50,000 52,508
Palm Beach County, FL Solid Waste Auth,
Solid Waste RB, 7.90%, 07/01/97 100,000 105,904
Panama City - Bay County, FL, Airport RB,
4.25%, 10/01/99, MBIA Insured 75,000 75,051
Pasco County, FL School Board, Certificates
of Participation,Series A, 5.25%,
08/01/96, FSA Insured 25,000 25,337
Plantation, FL, Water & Sewer RB, Capital
Appreciation Series B, Zero Coupon,
03/01/97, MBIA Insured 100,000 94,646
Port St. Lucie, FL, Sales Tax Revenue Notes,
Series 1995, 4.40%, 09/01/96 250,000 250,535
Puerto Rico Housing Bank & Finance Agency,
Single Family Mortgage RB, 4.50%,12/01/98 85,000 84,178
Puerto Rico Telephone Auth, Pub Improv RB,
Series M, 4.30%, 01/01/98 200,000 199,908
Punta Gorda, FL Health Facilities Auth,
Hospital RB, (Adventist Health/Sunbelt),
6.40%, 11/15/95, AMBAC Insured 50,000 50,049
St. Johns County, FL IDA, Hospital RB,
(Flagler Hospital), 5.00%, 08/01/97 100,000 101,180
St. Johns County, FL, Water & Sewer RB,
Series A, 5.80%, 06/01/97, MBIA Insured 50,000 51,469
St. Lucie County, FL, Sales Tax RB, 3.75%,
10/01/98, FGIC Insured 120,000 119,538
St. Petersburg, FL Health Facilities Auth,
Hospital RB,(Allegheny Health -St. Anthony),
Series C, 7.75%, 01/01/98, Pre-refunded @ 102 40,000 43,736
St. Petersburg, FL Professional Sports
acility, Sales Tax RB,Series 1995, 5.00%,
10/01/00 MBIA Insured 100,000 103,562
Seminole County, FL, Gas Tax Rfdg RB,
Series A, 5.00%, 10/01/96, FGIC Insured 25,000 25,314
Tampa, FL, Public Improv Collateralized
RB, 7.30%, 10/01/96,Yasuda Trust, Den
Danske Bank, Royal Bank of Canada, LOC 250,000 256,090
Tampa, FL Sports Auth, IDB, (Tampa Bay
Arena Project), 4.30%,04/01/99, MBIA Insured 80,000 80,554
Taylor County, FL Board Co Comm.,
Certificates of Indebtedness,5.20%, 01/01/96 85,000 85,098
Titusville, FL, Pub Improv RB, 5.75%,
10/01/99, AMBAC Insured 150,000 158,978
Volusia County, FL School Board, Certificates
of Participation, Master Lease Program,
4.40, 08/01/01, FSA Insured 100,000 99,742
West Palm Beach, FL Parking Facilities,
Transportation RB,Series A, 7.70%,
10/01/96, Pre-refunded @ 102 50,000 52,709
$12,688,340
Total Municipal Bonds (Cost $12,577,605)
Total Investments (100%) (Cost $13,277,605) $13,388,340 Summary of Ratings:
AAA/Equivalent 53%
AA/Equivalent 16%
A/Equivalent 19%
BBB/Equivalent 9%
NR 3%
Average Portfolio Maturity: 2.46 Years
30 Day Annualized Yield: 3.87%
Portion of portfolio subject to
Federal Alternative Minimum Tax: 10.80%
THE FLORIDA TAXFREE FUNDS
Statements of Assets and Liabilities
October 31, 1995 (Unaudited)
ASSETS Money Fund ShortTerm Fund
Investments in securities, at value
(cost $117,269,612 and $13,277,605
respectively) $ 117,269,612 $ 13,388,340
Cash -- 201,154
Receivables:
Interest 940,744 166,923
Fund shares sold 173,420 --
Organization costs, net of
accumulated amortization 25,999 25,999
Total assets 118,409,775 13,782,416
LIABILITIES
Payable for investment securities
purchased 2,958,280 403,224
Dividend payable 356,023 49,284
Funds advanced by custodian 615,595 --
Funds advanced by manager 106,579 8,193
Total liabilities 4,036,477 460,701
NET ASSETS
Net assets $ 114,373,298 $ 13,321,715
Number of shares outstanding 114,373,298 1,329,789
Net asset value, offering price
and redemption price per share $ 1.00 $ 10.02
See Notes To Financial StatementsTHE FLORIDA TAXFREE FUNDS
Statements of Operations
Six Months Ended October 31, 1995 (Unaudited)
Money Fund ShortTerm Fund
INVESTMENT INCOME
Income:
Interest $ 2,190,414 $ 276,243
Expenses:
12b-1 fees (Note 2) 46,240 13,478
Investment advisory fee (Note 2) 277,097 37,356
Custodian fees (Note 3) 19,297 7,985
Transfer agency fees and expenses
(Note 2) 39,812 7,159
Printing costs 3,747 290
Professional fees 17,641 9,957
Insurance 1,683 187
Registration and filing fees 13,538 7,793
Trustees' fees and expenses 2,710 790
Amortization of organization costs 4,260 4,260
Other expenses 11,271 1,228
Total expenses 437,296 90,483
Expense reimbursements fees (Note 2) (320,706) (76,239)
Custodian fees paid indirectly(Note 3) (5,751) (1,792)
Net expenses 110,839 12,452
Net investment income $2,079,575 $ 263,791
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss)
on investments -- 20,566
Unrealized appreciation
(depreciation) on investments -- 139,945
Net realized and unrealized gain
(loss) on investments -- 160,511
Increase in net assets from
operations $ 2,079,575 $ 424,302
THE FLORIDA TAXFREE FUNDS
Statements of Changes in Net Assets
MONEY FUND SHORTTERM FUND
Six Months Six Months
Ended Year Ended Year
10/31/95 Ended 10/31/95 Ended
(Unaudited) 4/30/95 (Unaudited) 4/30/95
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment
income $2,079,575 $2,996,519 $ 263,791 $ 469,005
Net realized gain
(loss) on
investments -- (26) 20,566 (102,090)
Unrealized
appreciation
of investments -- -- 139,945 120,554
Increase in net
assets from
operations 2,079,575 2,996,493 424,302 487,469
Dividends to
shareholders
from net
investment
income (2,079,575) (2,996,519) (263,791) (469,005)
Fund share
transactions
(Note 4) 8,726,660 82,130,183 2,048,205 337,293
Net increase in
net assets 8,726,660 82,130,157 2,208,716 355,757
Net Assets:
Beginning of
period 105,646,638 23,516,481 11,112,999 10,757,242
End of period $114,373,298 $105,646,638 $13,321,715 $11,112,999
THE FLORIDA TAXFREE FUNDS
Notes to Financial Statements - October 31, 1995 (Unaudited)
1. Summary of Accounting Policies
The Florida TaxFree Money Market Fund (the "Money Fund") and The
Florida TaxFree ShortTerm Fund (the "ShortTerm Fund") are series
of The Hough Group of Funds (the "Trust") which was organized as
a Massachusetts Business Trust on July 22, 1993. The Trust is
registered as an open-end diversified management investment
company and commenced operations on November 22, 1993. Each
Fund is considered to be a separate entity for financial
reporting and tax purposes. Their financial statements are
prepared in accordance with generally accepted accounting
principles for investment companies as follows:
Valuation of Securities
For the Money Fund, investments are stated at amortized cost.
Under this valuation method, a portfolio instrument is valued at
cost and any discount or premium is amortized on a constant
basis to the maturity of the instrument.
For the ShortTerm Fund, municipal obligations are stated on the
basis of valuations provided by an independent pricing service
approved by the Board of Trustees, which considers information
with respect to transactions in bonds, quotations from bond
dealers, market transactions in comparable securities and
various relationships between securities in determining value.
Variable Rate Demand Notes
The Funds have invested in certain variable interest demand
notes which are redeemable at specified intervals upon demand.
The securities are secured as to principal and interest by bank
letters of credit or corporate or insurance company guarantees.
The maturity of these instruments for the purpose of calculating
the portfolio's weighted average maturity is considered to be
the greater of the period until the interest rate is adjusted or
until the principal can be recovered by demand.
Federal Income Taxes
It is the policy of each Fund to comply with the requirements of
the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its income to its
Shareholders. Therefore, no provision for federal income tax is
required.
Dividends and Distributions
Dividends from investment income (excluding capital gains and
losses if any) are declared daily and paid monthly.
Distributions of net capital gains, if any, realized on the
sales of investments are made after the close of the Fund's
fiscal year and in December and/or January, as declared by the
Board of Trustees. Dividends paid from net investment income for
the period ended October 31, 1995 are exempt from federal income
taxes. However, certain Shareholders may be subject to the
Alternative Minimum Tax (AMT).
General
Securities transactions are accounted for on the trade date (the
date the order to buy or sell is executed). Interest income is
recorded on the accrual basis. Realized gains or losses from
securities transactions are recorded on the identified cost
basis.
1. Summary of Accounting Policies (Continued)
Organization Expenses
Organization expenses were advanced on behalf of the Funds by
its Adviser, William R. Hough & Company (WRH). These expenses
are being amortized on a straight-line basis over a five-year
period. During the amortization period, the proceeds of any
redemption of the original shares will be reduced by a pro rata
portion of any then unamortized expenses based on the ratio of
shares redeemed to the total initial shares outstanding
immediately prior to redemption.
Expenses
Expenses arising in connection with each Fund are allocated
directly to the respective Fund, if specifically identifiable.
Other expenses are allocated between the Funds in proportion to
the relative net assets of each Fund.
2. Investment Management Fees and Other Transactions with
Affiliate
Under its investment advisory agreements, WRH provides the Funds
with investment research, advice, and supervision, and manages
the business affairs of each Fund. For these services, the
Money Fund and ShortTerm Fund have agreed to pay WRH a monthly
fee at an annual rate of .50% and .60%, respectively, of their
average net assets for the month. For the six months ended
October 31, 1995, management fees totalled $277,097 and $37,356
for the Money Fund and ShortTerm Fund, respectively. The Funds
also compensate WRH for services provided under a Transfer
Agency and Fund Accounting Agreement at the rate of $18 per
account per year. During the six month period ended October 31,
1995, fees under this agreement amounted to $18,381 and $2,394
for the Money Fund and the ShortTerm Fund, respectively.
However, these and all other expenses of the Funds are being
paid by WRH to the extent that they exceed .20% of each Fund's
average daily net assets, and will continue to be paid at that
level until notice is otherwise provided to shareholders.
The Funds have adopted Distribution and Service Plans (the
"Plans") under Securities and Exchange Commission Rule 12b-1,
which authorize each Fund to pay WRH up to .25% of its annual
average net assets for shareholder support services or sales
activities. However, the Plans are not yet in operation and the
Funds have no obligation to make payments to WRH under the Plans
until they become operational, subject to approval by the Board
of Trustees. The amounts reported as 12b-1 fees in the
Statements of Operations represent Fund distribution costs, such
as advertising, printing, and dealer commissions, all of which
were paid by WRH, but which would be payable by the Funds had
the 12b-1 plans been operational.
During the six month period ended October 31, 1995, the Money
Fund and the ShortTerm Fund paid $345 and $474, respectively, to
WRH for brokerage fees on executions of portfolio investment
transactions.
Fees are paid to Trustees of the Trust at the rate of $1,200 per
year plus $250 per meeting.
3. Custodian Fees Paid Indirectly
For the six month period ended October 31, 1995, custodian fees
were reduced by earnings credits of $5,751 and $1,792 on average
daily cash balances for the Money Fund and ShortTerm Fund,
respectively.
4. Fund Shares
The Funds have authorized an unlimited number of shares at no
par value. Capital paid in for the Money Fund and the ShortTerm
Fund aggregated $114,373,324 and $13,293,049, respectively.
Transactions in Fund shares for the six months ended October 31,
1995 and the year ended April 30, 1995 were as follows:
MONEY FUND
Six Months Year
Ended Ended
10/31/95 4/30/95
Sold 105,709,685 233,833,318
Issued on reinvested
dividends 2,063,371 2,664,073
Redeemed (99,046,396) (154,367,208)
Net increase (decrease) 8,726,660 82,130,183
SHORTTERM FUND
SHARES AMOUNT
Six Months Year Six Months Year
Ended Ended Ended Ended
10/31/95 4/30/95 10/31/95 4/30/95
Sold 1,156,233 1,370,566 $11,515,536 $13,488,498
Issued on rein-
vested dividends 24,137 45,162 240,217 44,306
Redeemed (974,589)(1,382,237) (9,707,548)(13,595,511)
Net increase
(decrease) 205,781 33,491 2,048,205 337,293
* All at $1.00 per share
5. Investment Transactions
Purchases and sales/maturities of investment securities
(excluding short-term securities) for the ShortTerm Fund for the
six months ended October 31, 1995 were $5,228,753 and
$2,638,239, respectively. At October 31, 1995, the cost of
securities for federal income tax purposes was the same as that
for financial reporting purposes. The aggregate gross
unrealized appreciation and (depreciation) for the ShortTerm
Fund was $114,957 and ($4,222), respectively. Accumulated net
realized losses on investment transactions as of October 31,
1995 were $26 for the Money Fund and $82,070 for the ShortTerm
Fund.
5. Financial Highlights
Money Fund
Six Months Period
Per share operating performance Ended Year from
(for a share outstanding 10/31/95 Ended 11/23/93(1)
throughout the period) (Unaudited) 4/30/95 to 4/30/94
Net asset value,
beginning of period $1.00 $1.00 $1.00
Income from investment operations:
Net investment income 0.019 0.035 0.011
Net realized and unrealized gain
on investments -- -- --
Total from investment operations 0.019 0.035 0.011
Less distributions:
Dividends from net investment income (0.019) (0.035) (0.011)
Net asset value, end of period $1.00 $1.00 $1.00
Total return (annualized) 3.79% 3.59% 2.49%
Ratios/Supplemental Data
Net assets at end of period 000's) $114,373 $105,647 $23,516
Ratios to Average Daily Net Assets(2)
Expenses .20% .07% .00%
Expenses (Before reimbursement) .79% .79% 1.71%
Net Investment Income 3.75% 3.63% 2.55%
Net Investment Income
(Before reimbursement) 3.16% 2.91% .84%
Portfolio turnover rate N/A N/A N/A
(1) Commencement of operations.
(2) Figures are annualized for periods less than a year. ShortTerm Fund
Six Months Period
Per share operating performance Ended Year from
(for a share outstanding 10/31/95 Ended 11/23/93(1)
throughout the period) (Unaudited) 4/30/95 to 4/30/94
Net asset value,
beginning of period $9.89 $9.86 $10.00
Income from investment operations:
Net investment income 0.21 0.42 0.16
Net realized and unrealized gain
on investments 0.13 0.03 (0.14)
Total from investment operations 0.034 0.45 0.02
Less distributions:
Dividends from net investment income (0.21) (0.42) (0.16)
Net asset value, end of period $10.02 $9.89 $9.86
Total return (annualized) 6.94% 4.66% .49%
Ratios/Supplemental Data
Net assets at end of period 000's) $13,322 $11,113 $10,757
Ratios to Average Daily Net Assets(2)
Expenses .20% .07% .05%
Expenses (Before reimbursement) 1.22% 1.25% 2.52%
Net Investment Income 4.24% 4.25% 3.79%
Net Investment Income
(Before reimbursement) 3.22% 3.07% 1.32%
Portfolio turnover rate 23.6% 35.9% 10.9%
(1) Commencement of operations.
(2) Figures are annualized for periods less than a year.
