[COMMENT1]Dear Shareholder:
We are pleased to present the Annual Report on The Florida TaxFree Funds.
During the past year, the economy has shown signs of modest growth. Interest
rates were relatively stable throughout the year, with only one change in the
Fed Funds Rate by the Federal Reserve -- a lowering of the rate in January,
1996. In this environment, both funds produced the highest annual returns
1997. in their brief history.
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 grew during the past year to $113.9 million as
of April 30, 1996. This compares with $105.6 million on April 30, 1995.
IBC/Donoghue, a respected mutual fund performance and statistical reporting
company, ranks money market fund performance by category. We are pleased
to report that, for the year ending April 30, 1996, The Florida TaxFree Money
Market Fund has been ranked by IBC/Donoghue in the top 3% out of a total 156
tax-free state specific funds tracked by that firm each month. Based on
annualized expenses of .80%, 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 3.56% as of April 30, 1996. For investors in the 36% federal tax
bracket who have Florida intangible assets of $200,000 or more, the tax
equivalent yield was 5.76%.
The Florida TaxFree ShortTerm Fund
As of April 30, 1996, total net assets for the Fund were $12.3 million,
compared with assets of $11.1 million one year ago. The portfolio had a
dollar-weighted average maturity of 2.74 years and a 30 day SEC yield of
4.11% on April 30, 1996. This yield equates to a tax equivalent yield of 6.62%
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 $9.94 on April
30, 1996, compared with $9.89 on April 30, 1995 , contributing to a 4.85%
cumulative total return on the Fund for the year ended April 30, 1996. 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 42 cents per share for the year ending April 30,
1996.
The cumulative total return on the Fund since its inception November 22, 1993
through April 30, 1996 was 9.97%. This represents a return of 4.09% on an
annualized basis. As shown on the accompanying chart, another way of
illustrating this return since inception would be that $1,000 invested on
November 22, 1993 would have grown to $1,099.72 on April 30, 1996.
Contained in this space is a line graph which compares a $1,000 investment
in the ShortTerm Funds, since inception, to the Lehman index. The vertical
axis shows dollar values at increasing increments of $25 from $1,000- $1,125.
The horizontal axis represents dates at 6 month intervals from November 1993
through April 1996. The graph illustrates the fact that a $1,000 investment
made at inception of the Fund (11/22/93) would have grown to a value
$1,099.72 as of 4/30/96. This compares with the Lehman index over the
same period, which would have grown to $1,115.25. Additional text is
included to describe the composition of the Lehman index as follows:
"The Lehman index
includes bonds maturing within 2-4 years, which have a minimum credit rating
of Baa and were issued within the last 5 years as a part of an issue of at
least 50,000,000. As an unmanaged index, it does not include any operating
expenses."
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 (35%)
Principal Value
Amount
Broward County,FL HFA,Housing RB, (Quiet
Creek Apartments Project),4.35%, 02/01/05,
John Hancock Mutual Life Ins., GTY 500,000 500,000
Broward County, FL HFA, Housing RB,
(Fisherman's Landing Project),4.05%,
11/01/07, Continental Casualty, GTY 2,000,000 2,000,000
Broward County, FL IDA, Industrial
Development RB, (Pavermodule Inc),
4.25%,09/01/04,NationsBank ofGA,NA,LOC 420,000 420,000
Clay County, FL Development Auth,
IDB, (Carlisle Corp.), 4.25%,
08/01/04, Trust Company Bank, LOC 1,000,000 1,000,000
Collier County, FL HFA, Housing
RB, (River Reach), 4.10%, 12/01/15,
Morgan Guaranty Trust Co., LOC 1,000,000 1,000,000
Dade County, FL IDA, Pollution Ctrl RB,
(Florida Power & Light),4.10%,06/01/21 500,000 500,000
Dade County, FL HFA, Housing RB, (Star
Creek Apartments), Series 3,4.10%, 06/01/05,
First Union National Bank of Florida,LOC 975,000 975,000
Dade County, FL HFA, Housing RB,(Kendall
Court Apartments), Series 4,4.10%, 06/01/15,
First Union National Bank of Florida, LOC 975,000 975,000
Dade County, FL Health Facilities Auth,
Hospital RB, (Miami Children's Hospital),
4.20%, 09/01/20, Barnett Bank of
South FL, LOC 2,200,000 2,200,000
Dade County, FL IDA, IDB, (Dolphins Stadium),
Series A, 4.05%,01/01/16, Societe
Generale, LOC 500,000 500,000
Dade County, FL HFA, Housing RB, (Bermuda
Villas), 4.35%, 02/01/05,John Hancock
Mutual Life Ins., GTY 500,000 500,000
Dade County, FL HFA, Housing RB, (Mayan
Tower & Villas Project),4.35%, 02/01/05,
John Hancock Mutual Life Ins., GTY 500,000 500,000
Escambia County, FL Health Facilities Auth,
(Florida Convalescent Ctrs Program), 3.65%,
01/01/11, The Toronto-Dominion Bank, LOC 300,000 300,000
Florida HFA, Housing RB, (Clear Lake),
Series D, 4.05%, 12/01/09, Continental
Casualty, GTY 1,000,000 1,000,000
Florida HFA, Housing RB, (Parrot's Landing
Project), 1985 Series AA, 4.15%, 06/15/25,
FNMA Collateralized 1,500,000 1,500,000
Florida HFA, Housing RB, (Sun Point Cove
Apartments Project), 1985 Series XX,
4.15%, 06/15/25, FNMA Collateralized 1,500,000 1,500,000
Florida HFA, Housing RB, (Monteray
Meadows Apartments), 4.20%,12/01/07,
Citibank, N.A., LOC 1,000,000 1,000,000
Florida HFA, Housing RB, (Huntington Place
Project), 4.55%, 12/01/08, The Sumitomo
Bank, Ltd., LOC 500,000 500,000
Florida HFA, Housing RB, (Heritage Place II),
Series B, 4.35%, 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 IDA, Pollution
Ctrl RB, (Reynolds Metals Company), 3.75%,
12/01/15, National Westminster
Bank, PLC, LOC 900,000 900,000
Hillsborough County, FL IDA, Pollution
Ctrl RB, (Tampa Electric Co.), Series 1990,
4.10%, 09/01/25 500,000 500,000
Variable Rate Demand Notes (Continued) Principal Value
Amount
Hillsborough County, FL IDA, Pollution Ctrl
RB, (Tampa Electric Co.),4.00%, 05/15/18 500,000 500,000
Hillsborough, County, FL, IDA, IDB,
(Serigraphic Arts, Inc.), 4.25%, 09/01/07,
Dai-Ichi Kangyo Bank, Ltd., LOC 600,000 600,000
Hillsborough County, FL IDA, Industrial
Development RB, (Leslie Controls Inc.), 4.20%,
08/01/19, First Union National
Bank of NC, LOC 1,000,000 1,000,000
Jackson County, FL, Industrial RB,
(UniMac Co. Project), 4.25%, 06/01/08,
ABN-AMRO Bank, N.V., LOC 400,000 400,000
Jacksonville, FL Health Facilities Auth,
Hospital RB, (River Garden/The Coves), 4.20%,
08/01/19, First Union National
Bank of NC, LOC 500,000 500,000
Jacksonville, FL, Health Facilities Auth,
Hospital RB, (Baptist Medical Center Project),
4.40%, 06/01/08, MBIA Insured,
Sun Bank, N.A., SBPA 1,000,000 1,000,000
Lake County, FL IDA, IDB, (Novelty Crystal
Corp.), 4.40%, 06/01/12, Barnett
Bank, N.A., LOC 240,000 240,000
Lee County, FL HFA, Housing RB, (Multi
County Program), Series 1996A, 3.74%, 09/01/29,
Bayerische Landesbank Girozentrale, GIC 1,000,000 1,000,000
Los Angeles County, CA IDA, IDB, (353
Properties Ltd. Partnership), 5.00%,
12/01/05, Dai-Ichi Kangyo Bank Ltd., LOC 500,000 500,000
Los Angeles County, CA IDA, IDB, (Coe &
Dru), 5.10%, 12/01/06, Dai-Ichi
Kangyo Bank Ltd., LOC 100,000 100,000
Manatee County, FL HFA, Housing RB, 3.74%,
07/01/29, Bayerische Landesbank
Girozentrale, GIC 500,000 500,000
Manatee County, FL, Pollution Ctrl RB,
(Florida Power & Light), 4.10%, 09/01/24 400,000 400,000
Monroe County, FL IDA, IDB, (Beverly
Enterprises), 4.10%, 06/01/10, Morgan
Guaranty Trust Co., LOC 490,000 490,000
Palm Bay, FL, IDB, (Accudyne Corporation
Project), Series 1995, 4.30%, 04/01/20,
First Union National Bank of NC, LOC 1,500,000 1,500,000
Palm Beach County, FL, IDB, (Florida
Convalescent Centers), 4.40%, 11/01/11,
Sun Bank, N.A., LOC 500,000 500,000
Palm Beach County, FL, IDB, (Palm Beach
Jewish Comm Ctr), 4.15%, 05/01/02,
Sun Bank, N.A., LOC 400,000 400,000
Palm Beach County, FL, IDB, (Palm Beach
Bedding Co. Project), 4.20, 04/01/16, First
Union National Bank of Florida, LOC 1,000,000 1,000,000
Pinellas County, FL HFA, Housing RB,
(Lynn Lake II), 4.10%, 07/01/11,NationsBank
of Georgia, N.A., LOC 1,200,000 1,200,000
Pinellas County, FL, Health Facilities
Auth, Hospital RB, (Bayfront MedicalCenter,
Inc.), 4.15%, 06/01/09, FGIC Insured, Barnett
Bank, of S. FL, N.A., Liquidity Provider 500,000 500,000
Putnam County, FL Development Auth, Pollution
Ctrl RB, (Florida Power & Light), 4.10%,
09/01/24 1,680,000 1,680,000
St. Johns County, FL, Hospital RB,
(Flagler Hospital), 4.20%, 08/01/16,
Kredietbank, N.V., LOC 700,000 700,000
St. Lucie County, FL, IDB, (Florida
Convalescent Center Project), 3.45%,1/01/11,
The Toronto-Dominion Bank, LOC 500,000 500,000
St. Lucie County, FL, Pollution Control RB,
(Florida Power & Light), 4.10%,01/01/26 1,000,000 1,000,000
St. Lucie County, FL, Pollution Control RB,
(Florida Power & Light), 4.30%,01/01/27 800,000 800,000
Southeast Volusia, FL Hospital District,
Hospital RB, (Bert Fish Medical Center),
4.20%, 05/01/22, SouthTrust Bank, LOC 1,000,000 1,000,000
Sumter County, FL IDA, IDB, (Great
Southern Wood, FL, Inc.), 4.40%, 04/01/05,
SouthTrust Bank, LOC 600,000 600,000
Tamarac, FL, IDB, (Tampa Bay Business
Center, Inc. Project), 4.40%, 08/01/15,
NationsBank of FL, NA, LOC 1,000,000 1,000,000
Washington State Housing Fin Comm, Housing
RB, (YMCA Greater Seattle), 4.25%, 07/01/11,
U.S. Bank of Washington, N.A.,LOC 500,000 500,000
Total Variable Rate Demand Notes
(Cost $39,880,000) $39,880,000
Municipal Bonds (65%) Principal Value
Amount
Alachua County, FL, Public Improv RB,
3.60%, 08/01/96, FSA Insured 300,000 300,000
Bay County, FL Water System, Water &
Sewer RB, (Panama City), 10.00%, 09/01/96,
Pre-refunded @ 100 20,000 20,433
Beaver County, PA, GO Bond, 7.20%, 09/01/96,
Pre-refunded @ 100 30,000 30,341
Brevard County, FL, Sales Tax Rfdg & Improv
RB, 3.50%, 12/01/96, FGIC Insured 90,000 90,000
Broward County, FL, Rfdg RB, 7.875%,
07/01/96, Pre-refunded @ 102 50,000 51,315
Broward County, FL Airport System,
Transportation RB, Series A,10/01/96,
Pre-refunded @ 100 85,000 85,847
Broward County, FL HFA, Housing RB, (Deer
Chase Apartments Project),4.125%, 12/01/96,
First Indiana Bank, Collateralized LOC,
Mandatory tender @ 100 865,000 864,598
Broward County, FL School Board, Certificates
of Participation, Series A, Mandatory
Tender, 6.45%, 07/01/96, MBIA Insured 150,000 150,510
California Health Facilities Financing Auth,
Hospital RB, (Children's Hospital), 4.25%,
07/01/96, MBIA Insured 125,000 125,131
California, PA Area School District, GO Bond,
8.80%,1985 Series A,05/15/96,MBIA Insured 25,000 25,046
Chicago, IL, Tender Notes, Series B, 3.65%,
10/31/96, Morgan Guaranty Trust Co., LOC 1,000,000 1,000,000
Chicago, IL, Single Family Mortgage Housing
RB, Series B, 3.30%, 10/15/96, MBIA
Collateralized, Mandatory Tender @ 100 1,000,000 1,000,000
Cincinnati, OH, GO Bond, 6.875%, 12/01/96 115,000 116,948
Cook County, IL School District No 25,
GO Bond, (Arlington Heights),7.50%, 12/01/96,
AMBAC Insured 170,000 173,679
D
ade County, FL Aviation Auth, Airport RB,
Series D, 4.00%, 10/01/96, AMBAC Insured 350,000 350,363
Dade County, FL Educational Facilities Auth,
Higher Education RB,(University of Miami),
Series A, 3.50%, 04/01/97, MBIA Insured 665,000 665,139
Municipal Bonds (Continued) Principal Value
Amount
Dade County, FL, Water & Sewer RB, 4.50%,
10/01/96, FGIC Insured 570,000 571,730
Dade County, FL, Waterworks System Rfdg
GO Bond, 7.10%, 01/01/97,Pre-refunded @ 102 50,000 52,014
Dallas County, TX Utility and Reclamation
District, Water & Sewer RB, Series A, 7.50%,
08/15/96, Pre-refunded @ 100 500,000 505,165
District of Columbia, GO Bond, Series A,
6.70%, 06/01/96, MBIA Insured 50,000 50,137
District of Columbia, GO Bond, Series B,
6.60%, 06/01/96, MBIA Insured 50,000 50,133
District of Columbia, Custodial Receipts, Series
B, 6.50%, 06/01/96, Pre-refunded @ 102 125,000 127,815
Douglas County, GA, Certificates of Participation,
(Georgia Judicial & Administration Complex
Project), 3.80%, 11/01/96, AMBAC Insured 375,000 375,000
Duval County, FL School District, GO Bond,
6.90%, 08/01/96, Escrowed to Maturity 25,000 25,134
East Texas Criminal Justice Facilities
Financing Corporation, Public Improv RB,
(City of Henderson Project), 4.50%, 11/01/96, A
MBAC Insured 500,000 502,319
Florida HFA, Housing RB, Series QQ, 5.50%,
11/01/96, Pre-refunded @ 100 2,000,000 2,016,611
Florida HFA, Homeowner Mortgage & RB,
1995 Series 1A, 3.85%, 07/01/96 140,000 140,000
Florida Local Government Financing Comm,
GO Bond, 3.65%, 07/03/96, 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, GO Bond, (Hillsborough
County Expressway), 5.80%, 10/01/96 1,300,000 1,311,657
Florida State Department of Transportation,
GO Bond, (Right of Way), 5.75%, 07/01/96 165,000 165,668
Florida, State of, Pollution Ctrl Rfdg
RB, Series W, 6.80%, 07/01/96 75,000 75,328
Florida, State of, Pollution Ctrl RB, Series
T, 7.20%, 07/01/96, Pre-refunded @ 100 1,000,000 1,025,508
Florida School Boards Association, Inc.,
Muni Lease RB, (Orange County School Board
Project) 6.70%, 07/01/96, AMBAC Insured 200,000 200,953
Florida State Board of Education, GO Bond, Series
1988, 7.50%, 06/01/96, Pre-refunded @ 102 185,000 189,275
Florida State Board of Education, GO Bond, Series
A, 7.50%, 06/01/96, Pre-refunded @ 102 100,000 102,282
Florida State Board of Education, GO Bond, Series
A, 7.80%, 06/01/96,Pre-refunded @ 102 1,000,000 1,023,372
Florida State Board of Education, GO Bond, Series
B, 7.00%, 06/01/96, Pre-refunded @ 102 1,025,000 1,048,259
Florida State Board of Education, GO Bond,
Series B, 5.80%, 06/01/96 2,100,000 2,103,631
Florida State Board of Education, GO Bond,
Series B, 5.625%, 06/01/96 600,000 600,801
Florida State Board of Education, GO Bond,
Series B, 5.30%, 06/01/96 1,320,000 1,321,570
Florida State Board of Education, GO Bond,
Series A, 5.00%, 06/01/96 1,065,000 1,065,963
Florida State Board of Education, GO Bond,
Series B, 5.00%, 06/01/96 1,000,000 1,001,109
Florida State Board of Education, Capital Outlay
Rfdg GO Bond, Series C, 5.125%, 06/01/96 1,000,000 1,001,157
Florida State Board of Education, GO Bond,
Series E, 4.50%, 06/01/96 100,000 100,082
Florida State Division of Bond Finance,
Dept of General Services, Pub Improv RB,
(Seminole County Road), 7.70%, 11/01/96,
Pre-refunded @ 102 275,000 285,804
Florida State Division of Bond Finance, Department
of General Services,GO Bond, (Department
of Environmental Protection, Save Our Coast),
7.50%, 07/01/96, Pre-refunded @ 102 15,000 15,397
Florida State Division of Bond Finance,
Dept of General Services, Refunding RB,
(Dept of Natural Resources-Save Our Coast),
6.80%, 07/01/96, Pre-refunded @ 102 150,000 153,697
Florida State Division of Bond Finance,
Department of General Services,GO Bond,
(Department of Environmental Protection, Save
Our Coast), 5.40%, 07/01/96, MBIA Insured 100,000 100,353
Florida Municipal Power Agency, Electric
Util RB, (St. Lucie Project), 7.375%, 10/01/96,
AMBAC Insured 100,000 103,445
Florida Municipal Power Agency, Electric
Util RB, (Stanton Project), 5.80%, 10/01/96,
MBIA Insured 50,000 50,354
Florida Municipal Power Agency, Electric Util
RB, (St. Lucie Project), 4.20%, 10/01/96,
FGIC Insured 25,000 25,047
Florida Municipal Power Agency, Commercial Paper,
Pooled Loan Project, 3.35%, 05/06/96, First
Union National Bank of NC, LOC 905,000 905,000
Florida State Turnpike Auth, Transportation RB,
Series A, 6.10%, 07/01/96, AMBAC Insured 100,000 100,383
Florida State Turnpike Auth, Transportation RB,
Series A, 5.00%, 07/01/96, FGIC Insured 250,000 250,530
Fort Myers, FL, Public Improv RB, Series C,
5.00%, 06/01/96, AMBAC Insured 160,000 160,119
Fulton County, GA Hospital Auth, Revenue
Anticipation Certificates, (Northside Hospital),
Series B, 3.60%, 10/01/96, MBIA GIC 100,000 100,142
Gainesville, FL, Electric Util RB, Commercial
Paper, (Utility System C),3.15%, 05/08/96 1,451,000 1,451,000
Gainesville, FL, Electric Util RB, Commercial
Paper, (Utility System C),3.40%, 05/13/96 800,000 800,000
Glendale Heights, IL, Water & Sewer RB,
6.75%, 05/01/96, Pre-refunded @ 100 150,000 150,000
Hardee County, FL, Sales Tax Rfdg RB,
3.45%, 01/01/97, AMBAC Insured 295,000 293,948
Hernando County, FL School District, GO
Bond, 6.60%, 08/01/96,Pre-refunded @ 102 25,000 25,641
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, BMTF Mode A,
Subseries 1, 5.70%, 08/01/96,
Escrowed to Maturity 500,000 505,000
Hillsborough, County FL, Public Improv RB,
Capital Improvement Program,(Criminal Justice
Facilities), 4.75%, 08/01/96, FGIC Insured 500,000 501,852
Hillsborough, County FL, Public Improv RB,
Capital Improvement Program,(MOSI Project),
Series A, 5.00%, 07/01/96, MBIA Insured 110,000 110,289
Hillsborough, County FL, Public Improv RB,
Capital Improvement Program,(City Center Project),
Series B, 5.00%, 07/01/96, MBIA Insured 300,000 300,789
Hillsborough County, FL School Board,
Municipal Lease Obligation, (Master Lease
Program), 3.80%, 07/01/96, AMBAC Insured 1,375,000 1,375,110
Immokalee, FL Water & Sewer District,
Bond Anticipation Notes, 3.65%,08/30/96 500,000 500,000
Indian River County, FL School District,
Tax Anticipation Notes, 4.00%, 06/30/96 500,000 500,233
Iowa School Corps, Iowa Cash Anticipation Notes,
Series A, 4.75%, 06/28/96, FSA Insured 500,000 500,632
Iron Mountain, MI School District, Rfdg GO
Bond, 3.50%, 05/01/96, AMBAC Insured 125,000 125,000
Jacksonville, FL, Excise Taxes RB, Series A,
8.30%, 10/01/96, Pre-refunded @ 102% 30,000 31,148
Jacksonville, FL Health Auth, Hospital RB,
(Health South, Inc. Project),4.30%, 05/01/96,
Escrowed to Maturity 100,000 100,000
Kentucky State Turnpike Auth, Econ Development
Road RB, Series A, 7.60%, 07/01/96,
Pre-refunded @ 102 60,000 61,597
Lakeland, FL Hospital System, Hospital RB,
Lakeland Regional Medical Center Project),
Series B, 4.00%, 11/15/96, MBIA Insured 730,000 733,065
Las Vegas, NV Improvement District #404,
Public Improv RB, Zero Coupon, 11/01/96,
FSA Insured 350,000 343,383
Lee County, FL, Road Improvement Rfdg,
RB, 3.85%, 10/01/96, FGIC Insured 350,000 350,016
Leon County, FL, Capital Improvement Rfdg
RB, 7.60%, 10/01/96, Pre-refunded @ 102 25,000 25,924
Leon County, FL School District, GO Bond, Series
B, 7.875%, 07/01/96, Pre-refunded @ 102 1,000,000 1,027,519
Lynn Haven, FL, Capital Improvement RB, Series
1996A, 3.75%, 12/01/96, MBIA Insured 100,000 100,000
Manatee County, FL School District, Rfdg GO
Bond, 3.20%, 07/01/96, AMBAC Insured 200,000 199,755
Maricopa County, AZ School District No. 4,
GO Bond, (Mesa Unified), Series C, 6.60%,
07/01/96 AMBAC Insured 500,000 502,126
Martin County, FL School District, Tax
Anticipation Notes, 4.25%, 06/08/96 1,000,000 1,000,399
Massachusetts State College Bldg Auth,
Custodial Receipts/Certificates, Series A,
7.25%, 05/01/96, Pre-refunded @ 102 200,000 204,000
Massachusetts Health & Educational Facilities
Auth, Hospital RB, (Brigham & Women's Hospital
Project) Series B, 7.125%, 07/01/96,
Pre-refunded @ 100 300,000 301,915
Miami, FL, Tax Anticipation Notes, 4.50%,
09/27/96 1,000,000 1,002,744
Monroe County, FL School District, Tax
Anticipation Notes, 4.00%, 06/05/96 1,250,000 1,250,000
North Brevard County, FL Hospital District,
Hospital RB, (Jess Parish Memorial Hospital),
7.10%, 09/01/96, Pre-refunded @ 103 100,000 104,071
Northern Kentucky University, Housing RB,
Consolidated Education Bldgs, Series E, 7.10%,
05/01/96, AMBAC Insured 500,000 500,000
Okeechobee, FL, Water & Sewer Revenue Rfdg
and Improv Bonds, 7.875%, 01/01/97,
Pre-refunded @ 102 1,500,000 1,573,104
Oklahoma State Water Resources Board, Water
& Sewer RB, State LoanProgram, 3.10%, 09/01/96,
Bayerische Landesbank Girozentrale, GIC;
Swiss Bank Corp, SBPA, Mandatory Tender @100 250,000 250,000
Orange County, FL, Public Improv RB, Series B,
4.20%, 10/01/96, AMBAC Insured 485,000 485,727
Orange County, FL School District, Revenue
Anticipation Notes, Series 1995, 4.50%,
6/25/96 1,500,000 1,501,846
Orange County, FL School District, Tax
Anticipation Notes, Series 1995, 4.50%,
10/16/96 1,000,000 1,003,093
Orange County, FL School District, Revenue
Anticipation Renewal Notes, Series A, 4.25%,
04/15/97 1,500,000 1,508,919
Orange County, FL, Commercial Paper, 3.25%,
05/03/96,NationsBank, N.A., IRC 400,000 400,000
Orange County, FL, Tourist Development Tax
Public Improv RB, 7.50%, 10/01/96,
Pre-refunded @ 102 100,000 103,612
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
Orlando, FL, Water & Sewer RB, Commercial
Paper, 3.30%, 06/07/96, Union Bank of
Switzerland, LOC 2,400,000 2,400,000
Orlando-Orange County Expressway Auth, FL,
Transportation RB, 7.50%, 07/01/96,
Pre-refunded @ 102 1,000,000 1,026,084
Orlando-Orange County Expressway Auth, FL,
Transportation RB, 7.25%, 07/01/96,
Pre-refunded @ 102 20,000 20,496
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, GO Bond, 7.20%, 08/01/96,
Pre-refunded @ 102 1,000,000 1,028,656
Palm Beach County, FL, Criminal Justice
Facilities RB, 6.50%,06/01/96, FGIC Insured 150,000 150,277
Palm Beach County, FL, GO Bond, 7.625%, 1
0/01/96, Pre-refunded @ 102 20,000 20,719
Palm Beach County, FL Public Building Corp,
Public Improv RB, 7.10%, 06/01/96,
Escrowed to Maturity 200,000 200,441
Palm Beach County, FL, Public Improv RB,
(Judicial Center Parking Facility), 3.60%,
11/01/96, FGIC Insured 435,000 435,311
Palm Beach County, FL School District, Tax
Anticipation Notes, Series 1995, 4.50%,
09/27/96 1,000,000 1,002,586
Pasco County, FL Solid Waste Disposal &
Recovery System, Solid Waste RB, Series A, 7.35%,
04/01/97, FGIC Insured 40,000 41,101
Philadelphia, PA, Water & Sewer RB, 12th Series,
7.75%, 07/01/96, Pre-refunded @ 102 25,000 25,679
Pinellas County, FL HFA, Single Family
Mortgage RB, Multi-County Program, Series B,
3.40%, 03/01/97, GNMA/FNMA Collateralized,
GIC: Trinity Funding Company 1,000,000 1,000,000
Pinellas County, FL, Water & Sewer RB, Series
1995, 4.50%, 10/01/96, AMBAC Insured 1,000,000 1,003,041
Port St. Lucie, FL, Local Option Gas Tax Rfdg &
Improv RB, 3.50%, 09/01/96, FGIC Insured 85,000 85,000
Puerto Rico Electric Power Auth, Electric Util
RB, Series N, 6.20%, 07/01/96, MBIA Insured 150,000 150,707
Puerto Rico Industrial, Medical, & Environmental
Pollution Control Facilities Financing Auth, (Key
Pharmaceutical-Schering Plough), Series A, 3.80%,
12/01/96, Morgan Guaranty Trust Co., LOC,
Optional Tender @ 100 250,000 250,283
Putnam County, FL Development Auth, Pollution
Ctrl RB, (Seminole Electric Cooperative, Inc.),
Series D, 3.30%, 06/15/96, 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-4, 3.25%, 09/15/96, National Rural
Utilities Cooperative Finance Corporation, GTY,
Mandatory Tender @ 100 1,000,000 1,000,000
St. Cloud, FL, Util Revenue Certificates, 7.20%,
08/01/96, Pre-refunded @ 102 100,000 102,827
St. Johns River Water Management District, FL, Water
& Sewer RB,5.00%, 07/01/96, FSA Insured 1,880,000 1,884,638
St. Lucie County, FL School District, GO Bond,
Series 1996A, 3.50%, 02/01/97, FSA Insured 250,000 250,548
St. Lucie County, FL, Commercial Paper, (Florida
Power & Light), 3.55%, 05/23/96 1,000,000 1,000,000
St. Lucie County, FL, Commercial Paper, (Florida
Power & Light), 3.80%, 05/22/96 1,000,000 1,000,000
St. Petersburg, FL, Util Tax RB, 7.10%,
06/01/96, Pre-refunded @ 102 1,000,000 1,022,709
San Bernardino County, CA, Certificates of
Participation, 7.60%, 07/01/96,
Pre-refunded @ 102 45,000 46,182
Sanford, FL, Water & Sewer RB, 6.00%,
10/01/96, Pre-refunded @ 100 210,000 211,920
Sarasota County, FL Public Hosp Dist, Commercial
Paper Series A,(Sarasota Memorial Hospital),
3.65%, 06/04/96, The Sumitomo Bank, Ltd., LOC 345,000 345,000
Sarasota County, FL Public Hosp Dist, Commercial
Paper Series A,(Sarasota Memorial Hospital), 3.40%,
05/01/96, The Sumitomo Bank, Ltd., LOC 555,000 555,000
Sarasota County, FL Public Hosp Dist, Commercial
Paper, Series B,(Sarasota Memorial Hospital), 3.25%,
05/10/96, The Sumitomo Bank, Ltd., LOC 2,000,000 2,000,000
Sarasota County, FL Public Hosp Dist, Commercial
Paper, Series B,(Sarasota Memorial Hospital), 3.55%,
05/14/96,The Sumitomo Bank, Ltd., LOC 1,000,000 1,000,000
Sarasota County, FL Public Hosp Dist, Commercial
Paper, Series C,(Sarasota Memorial Hospital), 3.35%,
05/07/96,The Sumitomo Bank, Ltd. LOC 300,000 300,000
Seminole County, FL School District, GO
Bond, 5.00%, 08/01/96,MBIA Insured 1,000,000 1,004,464
South Broward FL Hospital District, Hospital
RB, 7.10%, 05/01/96, Pre-refunded @ 102 25,000 25,500
South Broward FL Hospital District, Hospital RB,
Series 1996, 3.20%, 05/01/96, MBIA Insured 250,000 250,000
South Florida Water Management District,
Special Obligation Land Acquisition Bonds,
3.60%, 10/01/96, AMBAC Insured 235,000 235,000
Sunshine State Gov Fin Comm, Commercial Paper,
3.15%, 05/09/96, LOC: Union Bank of Switzerland,
National Westminster Bank, PLC, Morgan
Guaranty Trust Co. 2,000,000 2,000,000
Sunshine State Gov Fin Comm, Commercial Paper,
3.65%, 05/06/96, LOC: Union Bank of Switzerland,
National Westminister Bank, PLC, Morgan
Guaranty Trust Co. 300,000 300,000
Tampa, FL, Water & Sewer RB, Series 1995, 3.60%,
10/01/96, FGIC Insured 295,000 295,000
Texas National Research Lab Commission
Financing Corporation, Muni Lease Obligation,
(Superconducting Super Collider Project),
5.70%, 12/01/96, Escrowed to Maturity 500,000 506,272
Utah, State of, Bldg & Highway Bonds, 4.70%,
07/01/96 100,000 100,195
Utah State Municipal Finance Corporation,
Local Government RB,(University of Utah Hospital
Project), 6.00%, 5/15/96, MBIA Insured 25,000 25,018
Vermont, State of, Rfdg GO Bond, Series A,
7.00%, 05/15/96, Pre-refunded @ 102 50,000 51,046
Weirton, WV Muni Hospital Bldg Commission,
Hospital RB, (Weirton Medical Center), Series A,
4.75%, 12/01/96, AMBAC Insured 35,000 35,148
West Coast Regional Water Supply Auth, FL, Solid
Waste RB, 4.25%, 10/01/96, MBIA Insured 100,000 100,409
West Palm Beach, FL Parking Facilities, Transportation
RB, 7.70%, 10/01/96, Pre-refunded @ 102 100,000 103,619
West Virginia School Board Auth, Public Improv
RB, Series B, 6.40%,07/01/96, MBIA Insured 100,000 100,417
West Virginia State HFA, Single Family Mortgage
RB, Series A, 6.60%, 07/01/96 200,000 200,938
West Virginia State Water Development Auth,
Water & Sewer RB,Series A, 7.00%, 11/01/96,
Pre-refunded @ 100 270,000 274,614
Total Municipal Bonds (Cost $74,323,149) $74,323,149
Total Investments (100%) (Cost $114,203,149) $114,203,149
Summary of Ratings (Unaudited):
AAA/Equivalent (92%), AA/Equivalent (8%)
Average Portfolio Maturity: 65 Days
Variable Rate Demand Notes (8%) Principal Value
Amount
Hillsborough County, FL IDA, Pollution Ctrl
RB,(Tampa Electric Co.),4.00% 5/15/18 150,000 150,000
Los Angeles County, CA IDA, IDB, (Coe & Dru),
5.10%, 12/01/06, Dai-Ichi Kangyo
Bank Ltd., LOC 800,000 800,000
Total Variable Rate Demand Notes
(Cost $950,000) $950,000
Municipal Bonds (92%) Principal Value
Amount
Alachua County, FL Health Facilities Auth,
Hospital RB, (Shands Hospital at the University
of FL), 6.00%, 12/01/97, MBIA Insured $150,000 154,863
Broward County, FL HFA, Single Family
Mortgage RB, 6.80%, 09/01/96, GNMA
Collateralized 70,000 70,554
Broward County, FL, Tourist Development
Tax, Special Tax RB, 4.70%, 10/01/00,
AMBAC Insured 30,000 30,237
Broward County, FL, Water & Sewer RB,
Zero Coupon, 10/01/99, AMBAC Insured 50,000 42,727
Cape Coral, FL, Water and Sewer Rfdg RB,
7.10%, 08/15/98, Pre-refunded @ 100.50 10,000 10,250
Cape Coral, FL, Water and Sewer Rfdg RB,
4.00%, 01/01/97, FGIC Insured 65,000 65,112
Clearwater, FL, Water & Sewer RB, Series B,
6.75%, 12/02/98, Pre-refunded @ 103.50 50,000 54,666
Collier County, FL School Board, Municipal
Lease Obligation, Certificate of Participation,
4.00%, 02/15/99, FSA Insured 100,000 99,032
Dade County, FL, Public Improv RB, 6.90%,
06/01/98, FGIC Insured 100,000 105,375
Dade County, FL, GO Bond, 7.40%, 07/01/97 75,000 75,744
Dade County, FL Education Facilities Auth,
Higher Ed RB, (St. Thomas Univ), 7.125%,
01/01/00, Escrowed to Maturity 30,000 32,188
Dade County, FL, Guaranteed Entitlement Spl
Assmt Bonds, Series B, Zero Coupon, 02/01/00,
MBIA Insured 250,000 209,235
Dade County, FL, Guaranteed Entitlement Spl
Assmt Bonds, Series B, Zero Coupon, 02/01/01,
MBIA Insured 250,000 198,617
Dade County, FL HFA, Single Family Mortgage
RB, Series B, 7.50%, 03/01/99,
GNMA Collateralized 5,000 5,115
Dade County, FL School District, GO Bond, Series
1995, 6.875%, 08/01/00, MBIA Insured 300,000 326,850
Dade County, FL School District, GO Bond,
4.00%, 07/15/99, MBIA Insured 100,000 98,869
Dade County, FL, Water & Sewer RB, 4.75%,
10/01/99, FGIC Insured 100,000 100,844
Dade County, FL Health Facilities Auth,
Hospital RB, (Catholic Health & Rehabilitation
Inc.), 7.45%, 08/15/99, Allied Irish Banks,
PLC, LOC 50,000 53,937
Municipal Bonds (Continued) Principal Value
Amount
Dade County, FL Health Facilities Auth,
Hospital RB, (Baptist Hospital Miami Project),
7.375%, 05/01/97, Pre-refunded @ 102 100,000 105,457
Dade County, FL Health Facilities Auth
Hospital RB, (Baptist Hospital Miami Project),
4.00%, 05/15/97, MBIA Insured 65,000 65,084
Duval County, FL HFA, Single Family Mortgage
RB, 7.80%, 12/01/98, GNMA Collateralized 25,000 25,766
Escambia County, FL HFA, Housing RB,
(Alpine Village Project), 4.20%, 10/01/97,
Harbor Federal S&L Assn., Collateralized LOC,
Mandatory Tender @ 100 100,000 100,000
Escambia County, FL, Public Improv RB,
4.25%, 01/01/97 110,000 109,887
Escambia County, FL, Public Improv RB,
4.75%, 01/01/99 220,000 219,006
Escambia County, FL, Public Improv RB,
Series A, 5.00%, 01/01/00 250,000 250,647
Escambia County, FL School Board, Municipal
Lease Obligation, Certificate of Participation,
5.80%, 02/01/00, FSA Insured 50,000 52,130
Florida HFA, Housing RB, Single Family
Mortgage RB, Series A, 5.70%, 01/01/01,
GNMA Collateralized 75,000 77,188
Florida HFA, Homeowner Mortgage & RB, 1995
Series 1A, 4.75%, 07/01/01 100,000 99,586
Florida HFA, Homeowner Mortgage & RB, 1995
Series 1B, 4.75%, 07/01/01 120,000 119,503
Florida HFA, Housing RB, (Turtle Creek
Apartments Project), 1996 Series C, 4.75%,
05/01/00, AMBAC Insured 85,000 84,939
Florida HFA, Housing RB, (Lake Carlton Arms),
7.375%, 12/01/99, National Life Insurance Co.,
GTY, Mandatory Tender @ 100 65,000 66,463
Florida HFA, Housing RB, (Crossings Project),
6.625%, 02/01/97, Connecticut General Life
Insurance, GTY, Mandatory Tender @ 100 55,000 56,157
Florida State Board of Education, GO Bond, Series
B, 7.00%, 06/01/99, Pre-refunded @102 75,000 81,878
Florida State Board of Education, GO Bond,
Series A, Zero Coupon, 06/01/00,
Pre-refunded @ 37.658 100,000 31,035
Florida State Board of Education, GO Bond,
6.10%, 06/01/00 25,000 25,908
Florida State Board of Education, GO Bond,
Series C, 5.125%, 06/01/00 100,000 103,569
Florida State Board of Education, GO Bond,
Series A, 5.25%, 06/01/00 65,000 66,798
Florida State Board of Education, GO Bond,
Series C, 5.90%, 05/01/00, Escrowed
to Maturity 25,000 25,416
Florida State Department of General Services,
Division of Facilities Management, (FL
Facilities Pool), Series C, 4.50%, 09/01/00,
FSA Insured 100,000 99,877
Florida Correctional Privatization Commission,
Certificates of Participation,(South Bay
Correctional Facility Project), 4.125%,
08/01/99, MBIA Insured 200,000 198,906
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 94,912
Florida State Division of Bond Finance,
Department of General Services, GO Bond,
(Dept of Environmental Protection-
Preservation 2000), Series A, 4.30%,
07/01/00, MBIA Insured 110,000 109,166
Florida State Turnpike Auth, Transportation
RB, 7.50%, 07/01/01 250,000 273,133
Florida State Turnpike Auth, Transportation
RB, 7.50%, 07/01/99, Pre-refunded @ 102 100,000 110,811
Florida State Turnpike Auth, Transportation
RB, 7.50%, 07/01/99, Pre-refunded @ 102 40,000 44,324
Ft. Myers, FL, Electric Utility Rfdg RB,
Series B, Zero Coupon, 10/01/99,
Pre-refunded @ 26.012 40,000 8,933
Gainesville, FL Util System, Electric Util RB,
Series A, 5.90%, 10/01/00 50,000 52,714
Hillsborough County, FL Aviation Auth, Airport
RB, (Tampa International Arpt), Series B,
7.00%,10/01/99, Pre-refunded @ 102 75,000 82,417
Hillsborough County, FL Aviation Auth, Airport
RB, (Tampa International Arpt), Series A,
6.00%, 10/01/96 100,000 100,796
Hillsborough County, FL Aviation Auth, Airport
RB, (Tampa International Arpt), 6.30%, 10/01/00,
FGIC Insured 75,000 80,353
Hillsborough County, FL, Public Improv RB,
(County Center Project), Second Series,
6.00%, 07/01/00 100,000 104,979
Hillsborough County, FL School Board,
Certificates of Participation, 4.60%,
07/01/97, MBIA Insured 100,000 100,708
Indian Trail Water Control District, FL,
Public Improvement RB, (Unit of Development No.1),
Series 1990, 7.875%, 07/01/00 25,000 26,388
Jacksonville, FL Electric Auth, Electric
Util RB, (St. Johns River Power Park),
Series 3-B, 4.20%, 10/01/99 100,000 99,588
Jacksonville, FL, Guaranteed Entitlement Rfdg
RB, Series A,4.40%,10/01/01,AMBAC Insured 100,000 99,047
Jacksonville, FL Health Facilities Auth,
Hospital RB, (Riverside Hospital), 7.25%,
10/01/98 30,000 31,421
Jacksonville, FL Health Facilities Auth,
Hospital RB, (St. Lukes Hospital Association),
5.90%, 11/15/96 100,000 101,043
Jacksonville, FL Health Facilities Auth,
Hospital RB, (St. Lukes Hospital Association),
6.30%, 11/15/99 50,000 52,999
Jacksonville, FL Port Auth, Airport RB, 7.00%,
10/01/96, AMBAC Insured 80,000 81,043
Key West, FL Util Board, Electric Util RB,
Zero Coupon (Step to 9.75% on 10/01/96), 04/01/00,
Pre-refunded @ 103 200,000 227,000
Lakeland, FL, Electric Util RB, (Lakeland,
FL Water), 6.45%, 10/01/96 75,000 75,824
Lee County, FL School Board, Certificates of
Participation, 4.75%, 08/01/98,FSA Insured 100,000 100,715
Lee County, FL School Board, Certificates of
Participation, 4.875%,08/01/99, FSA Insured 100,000 101,707
Lee County, FL School Board, Certificates of
Participation, Series A, 4.30%,
08/01/01, FSA Insured 50,000 49,304
Lee County, FL Hospital Board, Hospital RB,
(Lee Memorial Hospital), 7.10%, 04/01/98,
BIG Insured 50,000 52,551
Lee County, FL Solid Waste System, Solid
Waste RB, Series A, 6.30%, 10/01/97,
MBIA Insured 100,000 103,097
Lee County, FL Solid Waste System, Solid
Waste RB, Series A, 4.50%, 10/01/01,
MBIA Insured 95,000 93,739
Leesburg, FL, Hospital RB, (Leesburg
Regional Medical Center), 4.30%,07/01/96 105,000 104,970
Leesburg, FL, Hospital Rfdg RB, (Leesburg
Regional Medical Center Project), Series A,
4.80%, 07/01/00 250,000 249,703
Leon County, FL, Capital Improv RB, 8.10%,
10/01/96, Pre-refunded @ 102 40,000 41,528
Levy County, FL School Board, Certificates of
Participation, Municipal Lease Obligation,
5.00%, 07/01/00, Asset Guaranty Insured 100,000 101,420
Manatee County, FL HFA, Single Family Mortgage,
RB, 4.00%, 05/01/98, GNMA Collateralized 40,000 39,870
Martin County, FL, GO Bond, 6.50,%, 02/01/00,
Pre-refunded @ 102 50,000 54,169
Martin County, FL Health Facilities Auth,
Hospital RB, (Martin Memorial Hospital), Series A,
7.00%, 11/15/00, MBIA Insured 175,000 192,259
Martin County, FL, Combined Special Assessment
RB, 4.40%, 11/01/97 100,000 100,014
Martin County, FL, Combined Special Assessment
RB, 5.30%, 11/01/01 150,000 150,071
Miami Beach, FL, GO Bond, Series A, 6.35%,
09/01/96, Pre-refunded @ 102 100,000 102,877
Miami Beach, FL Redevelopment Agcy, Tax
Increm RB, (City Center/Historic Conv Village),
4.00%, 12/01/96 150,000 149,756
Miami Beach, FL Redevelopment Agcy, Tax
Increm RB, (City Center/Historic Conv Village),
4.20%, 12/01/97 100,000 99,497
Miami, FL, GO Bond, 7.00%, 06/01/96,
FGIC Insured 25,000 25,067
Miami, FL, GO Bond, 7.50%, 08/01/96 100,000 100,906
Miami, FL, Parking Facilities, Transportation
RB, 4.50%, 10/01/98 100,000 100,110
Nassau County, FL, Certificates of
Indebtedness, 5.50%, 12/01/96 107,000 107,085
Okaloosa County, FL, Water & Sewer RB,
7.15%, 01/01/99, Pre-refunded @ 102 50,000 54,314
Okeechobee, FL Util Auth, Util Sys
Acquisition & Improvement RB, Series 1995,
4.25%, 10/01/00, MBIA Insured 100,000 99,005
Orange County, FL Health Facilities Auth,
(Orlando Regional Medical Center Project),
6.15%, 10/01/97, Pre-refunded @ 102 100,000 105,181
Orange County, FL Health Facilities Auth,
Hospital RB, (Adventist Health Systems/Sunbelt
Obligated Group), 4.40%, 11/15/97,
AMBAC Insured 100,000 100,784
Orange County, FL HFA, Single Family
Mortgage RB, 5.50%, 10/01/00,
GNMA/FNMA Collateralized 100,000 102,794
Orange County, FL HFA, Single Family Mortgage
RB, Series A, 5.05%, 04/01/02,
GNMA/FNMA Collateralized, 100,000 100,000
Orange County, FL HFA, Housing RB,
(Post Lake (Orlando)), 7.50%, 01/01/98,
The Bank of Tokyo, Limited, LOC 50,000 51,416
Orlando, FL Utility Commission, Electric
Util RB, Sub-Series C, 7.00%, 10/01/99,
Pre-refunded @ 102 50,000 54,945
Orlando, FL Waste Water System, Solid Waste
RB, Series B, 7.50%,10/01/96,
Pre-refunded @ 102 45,000 46,608
Orlando-Orange County Expressway Auth, FL,
Transportation RB, 7.25%, 07/01/96,
Pre-refunded @ 102 50,000 51,294
Palm Beach County, FL, Public Improv RB,
7.25%, 10/01/96, Pre-refunded @ 102 50,000 51,735
Panama City - Bay County, FL, Airport RB,
4.25%, 10/01/99, MBIA Insured 75,000 74,527
Pasco County, FL School Board, Certificates of
Participation, Series A, 5.25%, 08/01/96,
FSA Insured 25,000 25,089
Plantation, FL, Water & Sewer RB, Capital
Appreciation Series B, Zero Coupon, 03/01/97,
MBIA Insured 100,000 96,624
Port St. Lucie, FL, Capital Appreciation
Bonds, Water & Sewer RB, Series 1996A, Zero
Coupon, 09/01/01, FGIC Insured 150,000 115,011
Puerto Rico Commonwealth Infrastructure
Financing Auth, Spl Tax RB, 7.60%, Series A,
07/01/00 200,000 213,626
Puerto Rico Housing Bank & Finance Agency,
Single Family Mortgage RB, 4.50%, 12/01/98 85,000 84,099
Puerto Rico Telephone Auth, Public Improv RB,
Series M, 4.30%, 01/01/98 200,000 199,066
St. Johns County, FL IDA, Hospital RB,
(Flagler Hospital), 5.00%, 08/01/97 100,000 100,899
St. Petersburg, FL Health Facilities Auth,
Hospital RB, (Allegheny Health -St. Anthony),
Series C, 7.75%, 01/01/98,
Pre-refunded @ 102 40,000 43,009
St. Petersburg, FL Professional Sports
Facility, Sales Tax RB, Series 1995, 5.00%,
10/01/00 MBIA Insured 100,000 101,980
Sarasota County, FL Health Facilities Auth,
(Sunnyside Properties Project), Series 1995,
5.50%, 05/15/01 500,000 489,245
Sarasota County, FL Utility System, Electric
Util RB, Zero Coupon, 06/01/99,
Pre-refunded @ 22.7283 400,000 79,484
Seacoast, FL Util Auth, Water & Sewer System RB,
Series A, Zero Coupon, 03/01/99,
Prefunded @ 27.8751 315,000 77,610
Seminole County, FL, Gas Tax Rfdg RB, Series A,
5.00%, 10/01/96, FGIC Insured 25,000 25,133
Tallahassee, FL Municipal Airport, Airport Rfdg
RB, 4.60%, 10/01/01, AMBAC Insured 165,000 163,824
Tampa, FL, Public Improv Collateralized RB,
7.30%, 10/01/96, Yasuda Trust, Den Danske Bank,
Royal Bank of Canada, LOC 250,000 252,635
Tampa, FL Sports Auth, IDB, (Tampa Bay Arena
Project), 4.30%, 04/01/99,MBIA Insured 80,000 80,000
Titusville, FL, Public Improv RB, 5.75%,
10/01/99, AMBAC Insured 150,000 156,841
West Palm Beach, FL Parking Facilities,
Transportation RB, Series A, 7.70%, 10/01/96,
Pre-refunded @ 102 50,000 51,827
Total Municipal Bonds
(Cost $11,210,354) $11,226,034
Total Investments (100%) (Cost $12,160,354) $12,176,034
Summary of Ratings (Unaudited):
AAA (53%), AA (16%), A (19%), BBB (9%)
Non-Rated (3%)
Average Portfolio Maturity: 2.74 Years
THE FLORIDA TAXFREE FUNDS
Statements of Assets and Liabilities
April 30, 1996
Assets Money Fund ShortTerm Fund
Investments in securities, at value
(cost $114,203,149 and
$12,160,354 respectively) $114,203,149 $ 12,176,034
Cash 62,817 37,203
Receivables:
Interest 1,285,878 148,684
Fund shares sold 265,735 --
From manager for reimbursable costs -- 7,096
Organization costs, net of accumulated
amortization 21,785 21,785
Total assets 115,839,364 12,390,802
LIABILITIES
Payable for investment securities purchased 1,565,865 --
Dividend payable 319,150 46,974
Funds advanced by manager 11,172 --
Total liabilities 1,896,187 46,974
NET ASSETS
Net assets $113,943,177 $ 12,343,828
Number of shares outstanding 113,943,177 1,242,046
Net asset value, offering price and
redemption price per share $ 1.00$ 9.94
THE FLORIDA TAXFREE FUNDS
Statements of Operations
Year Ended April 30, 1996
Money Fund ShortTerm Fund
INVESTMENT INCOME
Income:
Interest $ 4,444,733 $ 589,306
Expenses:
12b-1 fees (Note 2) 122,464 32,641
Investment advisory fee (Note 2) 581,695 79,440
Custodian fees (Note 3) 41,275 17,738
Transfer agency fees and expenses
(Note 2) 88,651 13,881
Printing costs 6,118 263
Professional fees 32,333 20,380
Insurance 3,366 374
Registration and filing fees 19,607 10,987
Trustees' fees and expenses 5,142 1,230
Amortization of organization costs 8,473 8,473
Other expenses 16,147 2,765
Total expenses 925,271 188,172
Expense reimbursements and fee
reductions (Note 2) (676,078) (158,149)
Custodian fees paid indirectly (Note 3) (16,515) (3,543)
Net expenses 232,678 26,480
Net investment income $ 4,212,055 $ 562,826
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments -- 3,238
Unrealized appreciation (depreciation)
on investments -- 44,890
Net realized and unrealized gain
(loss) on investments -- 48,128
Increase in net assets from
operations $ 4,212,055 $ 610,954
THE FLORIDA TAXFREE FUNDS
Statements of Changes in Net Assets
MONEY FUND SHORTTERM FUND
Year Ended Year Ended Year Ended Year Ended
4/30/96 4/30/95 4/30/96 4/30/95
INCREASE (DECREASE)
IN NET ASSETS
Operations:
Net investment income $4,212,055 $2,996,519 $562,826 $469,005
Net realized gain
(loss) on investment -- (26) 3,238 (102,090)
Unrealized appreciation of
investments -- -- 44,890 120,554
Increase in net assets
from operations 4,212,055 2,996,493 610,954 487,469
Dividends to shareholders
from net investment
income (4,212,055) (2,996,519) (562,826) (469,005)
Fund share transactions
(Note 4) 8,296,539 82,130,183 1,182,701 337,293
Net increase in
net assets 8,296,539 82,130,157 1,230,829 355,757
Net Assets:
Beginning of period 105,646,638 23,516,481 11,112,999 10,757,242
End of period $113,943,177 $105,646,638 $12,343,828 $11,112,999
THE FLORIDA TAXFREE FUNDS
Notes to Financial Statements - April 30, 1996
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 non-diversified manage
ment investment company and commenced operations on November 22, 1993. Both
funds seek a high level of current interest income, exempt from federal income
tax, as is consistent with the preservation of capital and liquidity, and both
are intended to be exempt from Florida Intangible Tax. 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
April 30, 1996 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.
THE FLORIDA TAXFREE FUNDS
Notes to Financial Statements - (Continued)
1. Summary of Accounting Policies (Continued)
Organization Expenses
Organization expenses are being amortized on a straight-line basis over a
five-year period.
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.
Accounting Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
2. Investment Management Fees and Other Transactions with Affiliate
Under its investment advisory agreements, William R. Hough & Co. (WRH)
provides the Funds with investment research, advice, 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 year ended April 30, 1996, management fees totaled $581,695 and $79,440
for the Money Fund and ShortTerm Fund, respectively. The Funds also
compensate WRHfor services provided under a Transfer Agency and Fund Accounting
Agreement at the rate of $18 per account per year. During the year ended
April 30, 1996, fees under this agreement amounted to $38,266 and $4,825 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 year ended April 30, 1996, the Money Fund and the ShortTerm Fund
paid $766 and $4,025, 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 year ended April 30, 1996, custodian fees were reduced by earnings
credits of $16,515 and $3,543 on average daily cash balances for the Money
Fund and ShortTerm Fund, respectively.
THE FLORIDA TAXFREE FUNDS
Notes to Financial Statements - (Continued)
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
$113,943,177 and $12,427,545, respectively. Transactions in Fund shares
for the years ended April 30, 1996 and 1995 were as follows:
MONEY FUND*
Year Year
Ended Ended
4/30/96 4/30/95
Sold 249,259,567 233,833,318
Issued on reinvested
dividends 4,189,167 2,664,073
Redeemed (245,152,195) (154,367,208)
Net increase 8,296,539 82,130,183
SHORTTERM FUND
SHARE AMOUNT
Year Year Year Year
Ended Ended Ended Ended
4/30/96 4/30/95 4/30/96 4/30/95
Sold 1,964,966 1,370,566 $19,623,819 $13,488,498
Issued on Reinvested
Dividends 52,842 45,162 528,044 444,306
Redeemed (1,899,770) (1,382,237) (18,969,162) (13,595,511)
Net Increase 118,038 33,491 $1,182,701 $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 year ended April 30, 1996 were
$11,530,512 and $10,004,369, respectively. At April 30, 1996, the cost of
securities for federal income tax purposes was the same as that for financial
reporting purposes. Net unrealized appreciation, which amounted to $15,680
for the ShortTerm Fund, consisted of aggregate gross unrealized appreciation
and (depreciation) of $51,568 and ($35,888), respectively. As of April 30,
1996, the accumulated net realized loss was $99,397 for the ShortTerm Fund.
For tax purposes, such losses are available to offset future realized capital
gains until the capital loss carryforwards expire in 2003.
THE FLORIDA TAXFREE FUNDS
Notes to Financial Statements - (Continued)
5. Financial Highlights
Money Fund
Per share operating performance
(for a share outstanding throughout
the period) Year Year Period
Ended Ended from
4/30/96 4/30/95 11/22/93*to 4/30/94
Net asset value, beginning $1.00 $1.00 $1.00
of period
Income from investment
operations:
Net investment income 0.036 0.035 0.011
Net realized and unrealized
gain(loss)on investments -- -- --
Total from investment
operations 0.036 0.035 0.011
Less distributions:
Dividends from net
investment income (0.036) (0.035) (0.011)
Net asset value,
end of period $1.00 $1.00 $1.00
Total returnH 3.69% 3.59% 2.49%
Ratios/Supplemental Data
Net assets at end of
period (000's) $113,943 $105,647 $23,516
Ratios to Average Daily
Net AssetsH
Expenses .20% .07% .00%
Expenses (Before
reimbursement) .80%I 1.04% 1.96%
Net Investment Income 3.62% 3.63% 2.55%
Portfolio turnover rate N/A N/A N/A
ShortTerm Fund
Per share operating performance
(for a share outstanding throughout
the period) Year Year Period
Ended Ended From
4/30/96 4/30/95 11/22/93*to 4/30/94
Net asset value, beginning
of period $9.89 9.86 $10.00
Income from investment
operations:
Net investment income 0.42 0.42 0.16
Net realized and unrealized
gain (loss) on investments 0.05 0.03 (0.14)
Total from investment
operations 0.47 0.45 0.02
Less distributions:
Dividends from net
investment income (0.42) (0.42) (0.16)
Net asset value,
end of period $ 9.94 $9.89 $9.86
Total Returnh 4.85% 4.66% 0.49%
Ratios/Supplemental Data
Net assets at end of
period (000's) $12,344 $11,113 $10,757
Ratios to Average Daily
Net AssetsH
Expenses .20% .07% .05%
Expenses
(Before reimbursement) 1.42%I 1.50% 2.77%
Net Investment Income 4.25% 4.25% 3.79%
Portfolio turnover rate 83.4% 35.9% 10.9%
* Commencement of operations.
H Figures are annualized for periods less than a year.
I Effective for year ending April 30, 1996, expense ratios (before
reimbursement) do not reflect reductions from custodian fee offset
arrangements.
The ratios after including these reductions were .78% and 1.40% for the Money
Fund and ShortTerm Fund, respectively. However, the manager has voluntarily
agreed to limit fees and expenses of the funds in order to maintain the total
operating expense ratio of each fund at 0.20%.
THE FLORIDA TAXFREE FUNDS
Independent Auditor's Report
The Board of Trustees and Shareholders
The Florida TaxFree Funds
We have audited the accompanying statements of assets and liabilities,
including the statements of investments of The Florida TaxFree Money Market
Fund and The Florida TaxFree ShortTerm Fund, series of The Hough Group of
Funds, as of April 30, 1996, the related statements of operation 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 two
years in the period then ended and for the period from November 22, 1993
(commencement of operations) to April 30, 1994. These financial statements
and financial highlights are the responsibility of the Funds' management.
Our responsibility is to express an opinion on these financial statements and
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 amount and disclosures
in the financial statements. Our procedures included confirmation of securities
owned as of April 30, 1996, by correspondence with the custodian and brokers.
An audit also includes assessing 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
Florida TaxFree Money Market Fund and The Florida TaxFree ShortTerm
Fund, series of the The Hough Group of Funds as of April 30, 1996, the results
of their operations, the changes in their net assets and the financial high
lights for the periods indicated, in conformity with generally accepted
accounting principles.
New York, New York
May 24, 1996
(This page is intentionally left blank.)
(This page is intentionally left blank.)
[COMMENT1]
THE FLORIDA TAXFREE FUNDS
1
The Florida TaxFree Money Market Fund
Statement of Investments
April 30, 1996
16
See Notes To Financial Statements
The Florida TaxFree ShortTerm Fund
Statement of Investments
April 30, 1996
37
