CONTENTS
President's Message 1
The Florida TaxFree Money Market Fund Statement of Investments
Variable Rate Demand Notes 3
Municipal Bonds 6
The Florida TaxFree ShortTerm Fund Statement of Investments
Municipal Bonds 12
Statements of Assets and Liabilities 18
Statements of Operations 19
Statements of Changes in Net Assets 20
Notes to Financial Statements 21
Dear Shareholder:
We are pleased to present the Semi-Annual Report on The Florida TaxFree Funds.
In the period since our April 30, 1996 Annual Report, the economy has been
relatively steady, resulting in a very stable interest rate environment. Due
to the ongoing voluntary commitment of William R. Hough & Co., which serves as
advisor, distributor, and transfer agent to the Funds, expenses continue to be
limited to .20 percent of each fund's respective net assets. This allows us
to offer very competitive returns for investors seeking short-term, liquid
investments that are free from federal and Florida intangible taxes.
The Florida TaxFree Money Market Fund
Total net assets of the Fund continued to grow during the last six months to
$136.6 million as of October 31, 1996. This compares with $113.9 million on
April 30, 1996 and $114.3 million on October 31, 1995.
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, 1996, The Florida TaxFree Money Market Fund has been
consistently ranked by IBC/Donoghue in the top two out of eight Florida tax-free
money market funds and the top five out of a total 293 tax-free money market
funds tracked by that firm each month. Based on annualized expenses of .77%,
had certain fees and expenses not been reimbursed by the Adviser, the yield and
ranking would have been lower, and, of course, past performance is no guarantee
of future results.
The 7 day average yield of the Fund was 3.42% as of October 31, 1996. For
investors in the 36% federal tax bracket who have Florida intangible assets of
$200,000 or more, the tax equivalent yield was 5.54%.
The Florida TaxFree ShortTerm Fund
As of October 31, 1996, total net assets for the Fund were $17.6 million,
compared with assets of $12.4 million on April 30, 1996 and $13.3 million on
October 31, 1995. The portfolio had a dollar-weighted average maturity of 2.95
years and a 30 day SEC yield of 4.12% on October 31, 1996. This yield equates
to a tax equivalent yield of 6.64% 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 $9.99 on October
31, 1996, compared with $9.94 on April 30, 1996 and $10.02 on October 31, 1995,
contributing to a 4.07% cumulative total return on the Fund for the year ended
October 31, 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 21 cents per share for the six
month period ending October 31, 1996 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, 1996 was 12.96%. This represents a return of 4.40% 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 $11,296 on
October 31, 1996, assuming reinvestment of all dividends.
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,
/s/ W. Robb Hough, Jr.
W. Robb Hough, Jr.
President
The Hough Group of Funds
Variable Rate Demand Notes (57%) PrincipalAmount Value
Broward County, FL HFA, Housing RB, (Quiet
Creek Apts. Project), 3.65%, 12/01/29,
John Hancock Mutual Life Ins., GTY $500,000 $500,000
Broward County, FL HFA, Housing RB,
(Fisherman's Landing Project), 3.55%,
11/01/07, Continental Casualty, GTY 2,000,000 2,000,000
Broward County, FL, IDB, (W.R. Bonsal
Company Project), 3.85%, 09/01/08,
NationsBank, N.A., LOC 1,500,000 1,500,000
Collier County, FL HFA, Housing RB,
(River Reach), 3.50%, 12/01/15, Morgan
Guaranty Trust Co., LOC 1,000,000 1,000,000
Dade County, FL IDA, Pollution Ctrl RB,
(Florida Power & Light), 3.65%, 06/01/21 700,000 700,000
Dade County, FL HFA, Housing RB, (Kendall
Court Apartments), Series 4, 3.60%, 06/01/15,
First Union National Bank of Florida, LOC 1,875,000 1,875,000
Dade County, FL IDA, Pollution Ctrl RB,
(Florida Power & Light), 3.55%, 04/01/20 1,000,000 1,000,000
Dade County, FL Health Facilities Auth, Hospital
RB, (Miami Children's Hospital), 3.60%, 09/01/20,
Barnett Bank of South FL, LOC 1,000,000 1,000,000
Dade County, FL IDA, IDB, (Dolphins Stadium),
Series A, 3.55%, 01/01/16, Societe Generale, LOC 500,000 500,000
Dade County, FL IDA, IDB, (Dynacolor Graphics Project),
3.85%, 06/01/99, Credit Commercial de France, LOC 1,275,000 1,275,000
Dade County, FL IDA, IDB, (DNS Manufacturing Project),
3.85%, 11/01/09, Barnett Bank of Broward County, LOC 1,690,000 1,690,000
Dade County, FL IDA, IDB, (Spectrum Programs Inc.
Project), 3.70%, 09/01/16, NationsBank, N.A., LOC 1,000,000 1,000,000
Dade County, FL HFA, Housing RB, (Bermuda Villas),
3.80%, 02/01/05, John Hancock Mutual Life Ins., GTY 500,000 500,000
Dade County, FL HFA, Housing RB, (Mayan Tower & Villas
Project), 3.80%, 02/01/05, John Hancock Mutual
Life Ins., GTY 500,000 500,000
Escambia County, FL Health Facilities Auth, (Florida
Convalescent Ctrs Program), 3.70%, 01/01/11, The
Toronto-Dominion Bank, LOC 300,000 300,000
Florida HFA, Housing RB, (Clear Lake), Series D,
3.50%, 12/01/09, Continental Casualty, GTY 1,000,000 1,000,000
Florida HFA, Housing RB, (Parrot's Landing Project),
1985 Series AA, 3.50%, 06/15/25, FNMA Collateralized 1,500,000 1,500,000
Florida HFA, Housing RB, (Sun Point Cove Apts
Project), 1985 Series XX, 3.50%, 06/15/25,
FNMA Collateralized 1,500,000 1,500,000
Florida HFA, Housing RB, (Lakes of Northdale
Project), Series D, 3.75%, 06/01/07, SouthTrust
Bank of AL, LOC 1,300,000 1,300,000
Florida HFA, Housing RB, (Monterey Lake Project),
1991 Series E, 3.55%, 10/01/05, Continental
Casualty, GTY 2,000,000 2,000,000
Florida HFA, Housing RB, (Monteray Meadows Apts.),
3.50%, 12/01/07, Citibank, N.A., LOC 1,000,000 1,000,000
Florida HFA, Housing RB, (Huntington Place Project),
3.75%, 12/01/08, The Sumitomo Bank, Ltd., LOC 500,000 500,000
Florida HFA, Housing RB, (Town Colony), Series EE,
3.55%, 09/01/08, CT General Life Ins., GTY 1,000,000 1,000,000
Variable Rate Demand Notes (Continued) PrincipalAmount Value
Hillsborough County, FL, Pollution Ctrl RB,
(Reynolds Metals Company), 3.60%, 12/01/15,
Dresdner Bank, A.G., LOC 1,000,000 1,000,000
Hillsborough County, FL IDA, Pollution Ctrl RB,
(Tampa Electric Co.), 3.60%, 09/01/25 700,000 700,000
Hillsborough County, FL IDA, Pollution Ctrl RB,
(Tampa Electric Co.), 3.70%, 11/01/20 1,600,000 1,600,000
Hillsborough County, FL IDA, IDB, (Seaboard Tampa
Terminal), 3.50%, 12/01/16, First Union National
Bank of NC, LOC 2,000,000 2,000,000
Hillsborough, County, FL, IDA, IDB, (Serigraphic
Arts, Inc.), 3.85%, 09/01/07,Dai-Ichi Kangyo Bank,
Ltd., LOC 550,000 550,000
Hillsborough County, FL IDA, Industrial Development
RB, (Leslie Controls Inc.), 3.70%, 08/01/19, First
Union National Bank of NC, LOC 1,000,000 1,000,000
Jacksonville, FL Health Facilities Auth, Hospital
RB, (Baptist Health Properties Project), 3.65%,
06/01/20, Barnett Bank, Jacksonville, LOC 400,000 400,000
Lake Bernadette Community Development District,
Spl Assmt Bonds, (Pasco County, FL), Series, 1996B,
3.65%, 11/01/01, SunTrust Bank, South FL, LOC 1,565,000 1,565,000
Laurel Club Certificate Trust, Variable Rate
Certificates of Participation, 1996 Series A,
3.65%, 06/01/25, Swiss Bank Corp., LOC 1,280,000 1,280,000
Lee County, FL HFA, Housing RB, (Forestwood Apts.
Project), Series 1995A, 3.50%, 06/15/25,
FNMA Collateralized 485,000 485,000
Los Angeles County, CA IDA, IDB, (Coe & Dru), 4.00%,
12/01/06, Dai-Ichi Kangyo Bank Ltd.,LOC 1,050,000 1,050,000
Marion County, FL IDA, IDB, (Convalescent Centers
Project), 3.90%, 01/01/11, The Toronto-Dominion
Bank, LOC 400,000 400,000
Martin County, FL, Pollution Ctrl RB, (Florida Power
& Light), 3.65%, 09/01/24 200,000 200,000
Martin County, FL, Solid Waste RB, (Florida Power
& Light), 3.70%, 01/01/27 1,000,000 1,000,000
Monroe County, FL IDA, IDB, (Beverly Enterprises),
3.55%, 06/01/10, Morgan Guaranty Trust Co., LOC 460,000 460,000
Okeechobee County, FL, Solid Waste RB, (Chambers
Waste System of FL), 3.85%, 03/01/06, Morgan
Guaranty Trust Co., LOC 2,000,000 2,000,000
Orange County, FL Health Facilities Auth, Hospital
RB, (SHCC Services Inc.), 3.50%, 12/01/23,
SunBank N.A., LOC 1,900,000 1,900,000
Palm Bay, FL, IDB, (Accudyne Corporation Project),
Series 1995, 3.85%, 04/01/20, First Union
National Bank of NC, LOC 1,430,000 1,430,000
Palm Beach County, FL, IDB, (Florida Convalescent
Centers), 3.75%, 11/01/11, SunBank, N.A., LOC 500,000 500,000
Palm Beach County, FL, IDB, (Palm Beach Bedding
Co. Project), 3.75%, 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), 3.70%, 07/01/11, NationsBank of Georgia,
N.A., LOC 1,500,000 1,500,000
Pinellas County, FL, Health Facilities Auth,
Hospital RB, (Bayfront Medical Center, Inc.),
3.50%, 06/01/09, FGIC Insured, Barnett Bank,
of S. FL, N.A., Liquidity Provider 500,000 500,000
Variable Rate Demand Notes (Continued) PrincipalAmount Value
Putnam County, FL Development Auth, Pollution
Ctrl RB, (Florida Power & Light), 3.65%, 09/01/24 1,000,000 1,000,000
St. Johns County, FL, Hospital RB, (Flagler
Hospital), 3.55%, 08/01/16, Kredietbank, N.V., LOC 700,000 700,000
St. Lucie County, FL, IDB, (Florida
Convalescent Center Project), 3.50%, 1/01/11,
The Toronto-Dominion Bank, LOC 500,000 500,000
St. Lucie County, FL IDB, (Orchid Island Juice
Co.), 3.85% 02/01/06, First Union National
Bank of FL, LOC 465,000 465,000
St. Lucie County, FL, Pollution Ctrl RB,
(Florida Power & Light), 3.70%, 01/01/27 1,800,000 1,800,000
Southeast Volusia, FL Hospital District, Hospital
RB, (Bert Fish Medical Center), 3.60%, 05/01/22,
SouthTrust Bank, LOC 1,000,000 1,000,000
Sunrise, FL, Municipal Securities Trust
Receipts-SGB 16, (Utility System RB), 3.65%,
10/01/21, Societe Generale, Liquidity Provider 2,500,000 2,500,000
Sumter County, FL IDA, IDB, (Great Southern Wood,
FL, Inc.), 3.80%, 04/01/05, SouthTrust Bank, LOC 600,000 600,000
Tampa, FL, Occupational License Tax RB, 3.50%,
05/01/27, FGIC Insured, FGIC-SPI, Liquidity Provider 1,000,000 1,000,000
Tamarac, FL, IDB, (Tampa Bay Business Center,
Inc. Project), 3.85%, 08/01/15, NationsBank
of FL, NA, LOC 1,000,000 1,000,000
Volusia County, FL IDA, IDB, (RS Displays Inc.
Project), 3.85%, 06/01/09, Credit Commercial
de France, LOC 825,000 825,000
Total Variable Rate Demand Notes $59,050,000
Municipal Bonds (43%) PrincipalAmount Value
Alachua County, FL School District, GO Bond,
4.20%, 01/01/97, FSA Insured 300,000 300,129
Brazos, TX Higher Education Auth Inc., Higher
Education RB, Series C-1, 5.30%, 11/01/96 90,000 90,000
Brevard County, FL, GO Bond, 4.40%, 03/01/97,
MBIA Insured 50,000 50,045
Brevard County, FL, Sales Tax Rfdg & Improv RB
3.50%, 12/01/96, FGIC Insured 90,000 90,000
Brevard County, FL School District, Tax Anticipation
Notes, 4.20%, 06/30/97 500,000 501,771
Broward County, FL, GO Bond, Series C, 5.00%,
01/01/97 500,000 501,087
Broward County, FL HFA, Housing RB, (Deer Chase
Apts Project), 4.125%, 12/01/96, First Indiana
Bank, Collateralized LOC, Mandatory Tender @ 100 950,000 949,944
Broward County, FL, Sales Tax Revenue Commercial
Paper, Series A, 3.70%, 01/06/97, Mitsubishi
Bank, LOC 1,370,000 1,370,000
Broward County, FL, Sales Tax Revenue Commercial
Paper, 3.60%, 12/06/96, Mitsubishi Bank, LOC 2,793,000 2,793,000
Broward County, FL, Water & Sewer RB, 7.50%,
10/01/97, Pre-refunded @ 102 1,625,000 1,711,373
Cape Coral, FL, Special Assessment Wastewater
Improv RB, 6.65%, 01/01/97, Escrowed to Maturity 50,000 50,214
Cincinnati, OH, GO Bond, 6.875%, 12/01/96 115,000 115,273
Collier County, FL School Board, Certificates of
Participation, 6.60%, 02/15/97, Escrowed
to Maturity 125,000 125,970
Connecticut State Resource Recovery Auth, Solid
Waste RB, (Mid Conn System Bonds), Series A, 7.30%,
11/15/96, Pre-refunded @ 103 200,000 206,203
Cook County, IL School District No 21, GO Bond,
(Wheeling), Series B, 3.75%, 12/01/96, MBIA Insured 395,000 394,959
Cook County, IL School District No 25, GO Bond,
(Arlington Heights), 7.50%, 12/01/96, AMBAC Insured 170,000 170,516
Dade County, FL, Public Improv RB, 6.80%,
06/01/97, FGIC Insured 1,000,000 1,017,292
Dade County, FL Educational Facilities Auth, Higher
Education RB, (University of Miami), 3.50%, Series
A, 04/01/97, MBIA Insured 665,000 665,062
Dade County, FL, Public Service Tax Refunding RB,
5.00%, 10/01/97, FSA Insured 2,000,000 2,019,525
Dade County, FL, Waterworks System Rfdg GO Bond,
7.10%, 01/01/97, Pre- refunded @ 102 50,000 51,252
District of Columbia HFA, Housing RB, Single Family
Mortgage RB, 4.00%, 12/19/96, Mandatory Tender @ 100 500,000 500,000
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, 5.20%,
08/01/97, AMBAC Insured 300,000 303,160
East Texas Criminal Justice Facilities Financing
Corporation, Public Improv RB, (City of Henderson
Project), 4.50%, 11/01/96, AMBAC Insured 500,000 500,000
Escambia County, FL HFA, Housing RB, (Alpine Village
Project), 4.20%, 10/01/97, Harbor Federal S&L Assn.,
Collateralized LOC, Mandatory Tender @ 100 400,000 400,706
Florida HFA, Housing RB, Series QQ, 5.50%, 11/01/96,
Pre-refunded @ 100 2,000,000 2,000,001
Florida HFA, Single Family Mortgage RB, 5.30%,
01/01/97, NMA/FNMA Collateralized 160,000 160,210
Florida HFA, Homeowner Mortgage RB, Series 1A,
4.05%, 07/01/97 100,000 100,093
Florida State, GO Bond, (Dade County Road),
4.70%, 07/01/97 200,000 201,289
Municipal Bonds (Continued) Principal Amount Value
Florida State Board of Education, GO Bond,
Series 1989B, 6.30%, 06/01/97 175,000 177,484
Florida State Board of Education, GO Bond,
6.50%, 06/01/97 700,000 711,382
Florida State Board of Education, GO Bond,
Series B, 5.625%, 06/01/97 4,000,000 4,044,796
Florida State Board of Education, GO Bond, Series F,
7.00%, 06/01/97 3,085,000 3,142,025
Florida State Board of Education, Higher
Education RB, Series A, 7.00%, 06/01/97 3,755,000 3,824,927
Florida State Board of Education, GO Bond,
Series C, 5.75%, 05/01/97, Escrowed to Maturity 250,000 252,225
Florida State Board of Education, GO Bond,
Series C-2, 5.50%, 05/01/97, Escrowed to Maturity 35,000 35,252
Florida State Division of Bond Finance, Dept of
General Services, Pub Improv RB, (Seminole County
Road), 7.70%, 11/01/96, Pre-refunded @ 102 275,000 280,500
Florida State Division of Bond Finance, Dept. of
General Services, GO Bond, (Save Our Coast),
Series I, 6.50%, 07/01/97, Pre-refunded @ 102 300,000 311,072
Florida State Division of Bond Finance, Dept. of
General Services, GO Bond, (Save Our Coast),
Series I, 7.20%, 07/01/97, Pre-refunded @ 102 115,000 119,688
Florida State Division of Bond Finance, Dept.
of General Services, GO Bond, (Preservation 2000),
Series A, 4.20%, 07/01/97, FSA Insured 25,000 25,041
Florida Municipal Power Agency, Commercial Paper,
Pooled Loan Project, 3.50%, 11/05/96, First
Union National Bank of NC, LOC 905,000 905,000
Florida Local Government Financing Comm, GO Bond,
Commercial Paper, 3.55%, 11/19/96, First Union
National Bank of Florida, LOC 1,600,000 1,600,000
Fort Myers, FL New Public Housing Auth, Housing
RB, 5.75%, 06/01/97 100,000 101,126
Fort Pierce, FL Util Auth, Special Obligation
Water & Sewer RB, 5.70%, 04/01/97, Escrowed
to Maturity 25,000 25,168
Franklin County, OH Convention Facilities Auth,
Tax & Lease Revenue Anticipation Bonds, 6.40%,
12/01/96, MBIA Insured 250,000
250,533
Gainesville, FL, Electric Util RB, Commercial Paper,
(Utility System C), 3.55%, 12/05/96 1,451,000 1,451,000
Gainesville, FL, Electric Util RB, Commercial Paper,
(Utility System C), 3.50%, 11/18/96 800,000 800,000
Gainesville, FL, Electric Util RB, Commercial Paper,
(Utility System C), 3.50%, 11/07/96 500,000 500,000
Gettysburg, PA Area School District, GO Bond,
4.50%, 11/15/96, AMBAC Insured 100,000 100,002
Hardee County, FL, Sales Tax Rfdg RB, 3.45%,
01/01/97, AMBAC Insured 295,000 294,738
Hawaii County, HI, GO Bond, 6.50%, 12/01/96,
MBIA Insured 50,000 50,112
Hollywood, FL, Water & Sewer RB, 5.60%, 10/01/97,
Escrowed to Maturity 100,000 101,420
Homestead, FL, Special Insurance Assessment RB,
(Hurricane Andrew Covered Claim), 4.40%,
03/01/97, MBIA Insured 95,000 95,153
Houston, TX Water System, Water & Sewer RB, 8.10%,
12/01/96, Pre-refunded @ 102 250,000 255,863
Illinois State, GO Bond, 11.00%, 11/01/96,
Pre-refunded @ 101 1,000,000 1,010,000
Illinois State, Certificates of Participation,
5.20%, 11/01/96, MBIA Insured 75,000 75,000
Iowa Student Loan Liquidity Corporation, Higher
Education RB, Series A, 7.40%, 12/01/96,
AMBAC Insured 80,000 80,216
Municipal Bonds (Continued) Principal Amount Value
Jacksonville, FL, Elec Auth, Electric Util RB,
Series Three-A, 6.875%, 04/01/97,
Pre-refunded @ 101.5 100,000 103,033
Jacksonville, FL Elec Auth, Commercial Paper, Series
D-1, 3.50%, 11/14/96, Credit Suisse,
Liquidity Provider 1,000,000 1,000,000
Jacksonville, FL Elec Auth, Commercial Paper,
Series D-3, 3.50%, 11/06/96, Credit Suisse,
Liquidity Provider 1,100,000 1,100,000
Jacksonville, FL, Commercial Paper, 3.70%,
01/03/97, Morgan Guaranty, Credit
Suisse, Bayerische Landesbank, SunBank, IRC 1,000,000 1,000,000
Jacksonville, FL, Commercial Paper, (Florida Power
& Light), Series 1992, 3.45%, 11/01/96 2,000,000 2,000,000
Jacksonville, FL, Commercial Paper, (Florida Power
& Light), Series 1992, 3.65%, 01/09/97 1,000,000 1,000,000
Kissimmee, FL Util Auth, Electric Util RB,
4.15%, 10/01/97, FGIC Insured 100,000 100,310
Lakeland, FL Hospital System, Hospital RB,
(Lakeland Regional Medical Center Project),
Series B, 4.00%, 11/15/96, MBIA Insured 730,000 730,216
Lake Worth, FL, Water & Electric RB, Series A,
4.125%, 04/01/97, AMBAC Insured 100,000 100,149
Las Vegas, NV Improvement District #404, Public
Improv RB, Zero Coupon, 11/01/96, FSA Insured 350,000 350,000
Lee County, FL, Capital & Transportation Facilities
RB, Series A, 4.00%, 10/01/97, MBIA Insured 100,000 100,176
Lee County, FL, Public Improv RB, SubSeries Two,
6.50%, 10/01/97, Pre-refunded @ 102 25,000 25,554
Lee County, FL Hospital Board of Directors, (Lee
Memorial Hospital Project), Commercial Paper, 1995
Series A, 3.55%, 11/15/96, Sun Bank, N.A., LOC 1,500,000 1,500,000
Lee County, FL School Board, Certificates of
Participation, Series A, 4.20%, 08/01/97,
FSA Insured 100,000 100,142
Lee County, FL IDA, IDB, (Bonita Springs Project),
6.40%, 11/01/96, Asset Guaranty Insured 215,000 215,000
Longboat Key, FL, Water & Sewer RB, 4.00%,
07/01/97, AMBAC Insured 100,000 100,159
Lynn Haven, FL, Capital Improvement RB, Series
1996A, 3.75%, 12/01/96, MBIA Insured 100,000 100,000
Manatee County, FL HFA, Single Family Mortgage RB,
Subseries 1, 4.50%, 05/01/97, GNMA Collateralized 45,000 45,000
Manatee County, FL, Transportation RB, 3.80%,
10/01/97, MBIA Insured 50,000 50,000
Marion County, FL School District, GO Bond, 4.50%,
08/01/97, FSA Insured 50,000 50,139
Martin County, FL School District, Tax Anticipation
Notes, 4.25%, 06/30/97 1,000,000 1,003,176
Miami Beach, FL Health Facilities Auth, Hospital
RB, (Mount Sinai Medical Center Project), 4.60%,
11/15/96, FSA Insured 25,000 25,001
Miami, FL, GO Bond, 4.30%, 12/01/96, FGIC Insured 50,000 50,002
Minneapolis, MN, GO Bond, 6.85%, 12/01/96 100,000 100,235
New Jersey State, GO Bond, 7.30%, 11/01/96,
Pre-refunded @ 101.50 100,000 101,500
Okaloosa County, FL, Water & Sewer RB, Custody
Receipts Loan Obligations, 6.00%, 04/01/97,
MBIA Insured 100,000 100,681
Okaloosa County, FL, Water & Sewer RB, 3.95%,
07/01/97, MBIA Insured 100,000 99,963
Municipal Bonds (Continued) Principal Amount Value
Okeechobee, FL, Water & Sewer Revenue Rfdg and
Improv Bonds, 7.875%, 01/01/97, Pre-refunded @ 102 1,500,000 1,540,732
Orange County, FL Health Facilities Auth, Hospital
RB, (Orlando Regional Healthcare), Series B, 3.75%,
10/01/97, MBIA Insured 810,000 810,000
Orange County, FL, Sales Tax RB, Series F, 6.70%,
01/01/97, Pre-refunded @ 102 25,000 25,599
Orange County, FL School District, Revenue
Anticipation Renewal Notes, Series A, 4.25%,
04/15/97 1,500,000 1,504,216
Orange County, FL, Commercial Paper, 3.40%,
11/04/96, NationsBank, N.A., IRC 400,000 400,000
Orlando, FL Utilities Commission, Water & Sewer
RB, 4.50%, 10/01/97 100,000 100,622
Orlando, FL Utilities Commission, Water & Sewer RB,
Subseries A, 4.10%, 10/01/97 100,000 100,266
Orlando, FL, Water & Sewer RB, Commercial Paper,
3.65%, 12/09/96, Union Bank of Switzerland, LOC 2,400,000 2,400,000
Orlando, FL Community Redevelopment Agency, Tax
Increment RB, 4.60%, 10/01/97, FGIC Insured 250,000 251,217
Osceola County, FL School District, GO Bond,
5.20%, 08/01/97, MBIA Insured 50,000 50,435
Palm Beach County, FL, Public Improv RB, (Judicial
Center Parking Facility), 3.60%, 11/01/96,
FGIC Insured 435,000 435,000
Palm Beach County, FL School District, Tax
Anticipation Notes, Series 1996, 4.50%, 09/26/97 1,500,000 1,508,188
Pasco County, FL Solid Waste Disposal & Resource
Recovery System, Solid Waste RB, Series A, 7.35%,
04/01/97, FGIC Insured 40,000 40,496
Pennsylvania State Financing Auth, Muni Lease
Obligation, (Township of Peters Washington County
Proj), 3.75%, 11/01/96, MBIA Insured 100,000 100,000
Pennsylvania State, GO Bond, Fourth Series A, 6.30%,
12/15/96, Pre-refunded @ 101.50 500,000 509,043
Pinellas County, FL HFA Single Family Mortgage
Revenue Bonds, 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, Transportation Improv RB,
5.00%, 08/01/97, FGIC Insured 250,000 252,374
Polk County, FL, Capital Improv RB, 6.20%,
12/01/96, Escrowed to Maturity 100,000 100,165
Puerto Rico Public Bldgs Auth, Gtd Public Education
& Health Facilities RB, Series G, 7.875%, 07/01/97,
Pre-refunded @ 102 135,000 141,158
Puerto Rico Public Bldgs Auth, Gtd Public Education
& Health Facilities RB, Series H, 7.875%, 07/01/97,
Pre-refunded @ 102 100,000 104,590
Puerto Rico Electric Power Auth, Electric Util RB,
9.375%, 07/01/97, Pre-refunded @ 102 300,000 316,219
Puerto Rico Industrial, Medical, & Environmental
Pollution Ctrl Facilities Financing Auth, (Key
Pharmaceutical-Schering Plough), Series A, 3.80%,
12/01/96, Morgan Guaranty Trust Co., LOC,
Optional Tender @ 100 250,000 250,039
Punta Gorda, FL, Water and Sewer RB, (Crossover
Refunding), 4.80%, 01/01/97, AMBAC Insured 40,000 40,028
Putnam County, FL Development Auth, Pollution
Ctrl RB, (Seminole Electric Cooperative, Inc.),
Series D, 3.50%, 12/15/96, National Rural Utilities
Cooperative Finance Corporation, GTY,
Mandatory Tender @100 1,500,000 1,500,000
Municipal Bonds (Continued) PrincipalAmount Value
Putnam County, FL Development Auth, Pollution
Ctrl RB, (Seminole Electric Cooperative, Inc),
Series H-4, 3.80%, 03/15/97, National Rural
Utilities Cooperative Finance Corporation,
GTY, Mandatory Tender @ 100 1,000,000 1,000,000
Sacramento, CA Redevelopment Agency, Tax Allocation
RB, (Merged Downtown Redevelopment Project), 8.15%,
11/01/96, Pre-refunded @ 102 50,000 51,000
St. Johns County, FL, GO Bond, 6.60%, 09/01/97,
Pre-refunded @ 102 25,000 26,017
St. Lucie County, FL School District, GO Bond,
Series 1996A, 3.50%, 02/01/97, FSA Insured 250,000 250,182
St. Lucie County, FL, Commercial Paper, (Florida
Power & Light), 3.50%, 01/07/97 1,000,000 1,000,000
St. Lucie County, FL, Commercial Paper, (Florida
Power & Light), 3.60%, 11/07/96 1,000,000 1,000,000
Sarasota County, FL Public Hosp Dist, Commercial
Paper, Series A, (Sarasota Memorial Hospital), 3.65%,
11/13/96, SunTrust Bank, Central Florida, LOC 900,000 900,000
Sarasota County, FL Public Hosp Dist, Commercial
Paper, Series B, (Sarasota Memorial Hospital), 3.60%,
11/08/96, SunTrust Bank, Central Florida, LOC 2,000,000 2,000,000
Sarasota County, FL Public Hosp Dist, Commercial
Paper, Series B, (Sarasota Memorial Hospital), 3.55%,
12/11/96, SunTrust Bank, Central Florida, LOC 1,000,000 1,000,000
Sarasota County, FL Public Hosp Dist, Commercial
Paper, Series C, (Sarasota Memorial Hospital), 3.70%,
12/10/96, SunTrust Bank, Central Florida, LOC 300,000 300,000
Sarasota County, FL Public Hosp Dist, Commercial
Paper, Series 1996A, (Sarasota Memorial Hospital),
3.60%, 12/03/96, SunTrust Bank, SBPA 1,000,000 1,000,000
Sarasota County, FL Public Hosp Dist, Commercial
Paper, Series 1996A, (Sarasota Memorial Hospital),
3.55%, 12/04/96, SunTrust Bank, SBPA 1,500,000 1,500,000
Seacoast, FL Util Auth, Water & Sewer RB,
Series A, 6.70%, 03/01/97, Escrowed to Maturity 50,000 50,504
Signal Hill, IL School District No. 181, GO Bond,
9.00%, 12/01/96, Asset Guaranty Insured 120,000 120,461
South Dakota State Health & Educational Facilities
Auth, Hospital RB, (Sioux Valley Hospital),
6.95%, 11/01/96, Escrowed to Maturity 100,000 100,000
South Dakota State Bldg Auth, Certificates of
Participation, Series A, 7.50%, 12/01/96,
Pre-refunded @ 102 240,000 245,515
Steamboat Springs, CO, Sales Tax RB, Series B,
4.55%, 12/01/96, MBIA Insured 175,000 175,073
Sunshine State Gov Fin Comm, Commercial Paper,
3.50%, 11/13/96, LOC: Union Bank of Switzerland,
National Westminster Bank, PLC,
Morgan Guaranty Trust Co. 2,300,000 2,300,000
Sunshine State Gov Fin Comm, Commercial Paper,
3.65%, 01/08/97, Florida State Board of
Administration, Liquidity Provider 1,000,000 1,000,000
Tampa, FL, Utility Tax & Special RB, 8.125%,
10/01/97, Pre-refunded @ 102 300,000 317,271
Texas National Research Lab Commission Financing
Corporation, Muni Lease Obligation, (Superconducting
Super Collider Project), 5.70%, 12/01/96,
Escrowed to Maturity 500,000 500,879
Venice, FL, Stormwater & Drain RB, Series 1996,
3.85%, 05/01/97, AMBAC Insured 115,000 115,000
Virginia State Public School Auth, Special
Obligation RB, (Henrico County), 6.70%, 12/01/96 50,000 50,108
Volusia County, FL Educational Facilities Auth,
Higher Education RB, (Stetson University Project),
Series B, 3.65%, 06/01/97, MBIA Insured 200,000 200,000
Municipal Bonds (Continued) PrincipalAmount Value
Washington Suburban Sanitation District, MD,
Solid Waste RB, 5.90%, 11/01/96 100,000 100,000
Weirton, WV Muni Hospital Bldg Commission,
Hospital RB, (Weirton Medical Center),
Series A, 4.75%, 12/01/96, AMBAC Insured 35,000 35,021
West Virginia State Water Development Auth, Water
& Sewer RB, Series A, 7.00%, 11/01/96,
Pre-refunded @ 100 270,000 270,000
Total Municipal Bonds (Cost $78,671,651) $78,671,651
Total Investments (100%) (Cost $137,721,651) $137,721,651
Summary of Ratings:
AAA/Equivalent (98%), AA/Equivalent (2%)
Average Portfolio Maturity: 64 Days
Municipal Bonds (100%) PrincipalAmount Value
Bay County, FL, Pollution Ctrl RB, (International
Paper Co. Project), 5.70%, 11/01/98 20,000 20,128
Belle Glade, FL, Water & Sewer RB, Series A, 4.05%,
09/01/00, FSA Insured 35,000 34,522
Boynton Beach, FL, Housing RB, (Clipper Cove
Apartments), 4.20%, 01/01/97 60,000 60,026
Bradenton, FL, Util System Water & Sewer RB,
Series A, 7.10%, 10/01/99, AMBAC Insured 100,000 107,650
Brevard County, FL School Board, Certificates of
Indebtedness, 6.55%, 01/01/98, AMBAC Insured 25,000 25,695
Brevard County, FL School Board, Certificates of
Participation, 6.50%, 07/01/02, Pre-refunded @ 102 100,000 111,186
Broward County, FL School District, GO Bond, 6.75%,
02/15/97 25,000 25,193
Broward County, FL School District, GO Bond, 6.75%,
02/15/98 200,000 207,020
Broward County, FL School District, GO Bond,
5.70%, 02/15/01 300,000 314,124
Cape Coral, FL, Water and Sewer Rfdg RB, 4.00%,
01/01/97, FGIC Insured 65,000 65,042
Central Arizona Water Conservation District,
Electric Util RB, (Central Arizona Project)
6.90%, 11/01/96 25,000 25,000
Clay County, FL Util System, Water & Sewer RB,
Series B, 4.125%, 11/01/99, FGIC Insured 100,000 99,693
Clearwater, FL, Water & Sewer RB, Series B,
6.75%, 12/01/98, Pre-refunded @ 103.50 50,000 54,387
Collier County, FL School Board, Municipal Lease
Obligation, Certificates of Participation, 4.00%,
02/15/99, FSA Insured 100,000 99,757
Dade County, FL, GO Bond, 7.40%, 07/01/97 75,000 75,975
Dade County, FL Aviation Auth, Transportation RB,
Series X, 5.25%, 10/01/01 100,000 103,316
Dade County, FL Aviation Auth, Transportation RB,
Series Y, 4.90%, 10/01/01, MBIA Insured 140,000 142,131
Dade County, FL, Guaranteed Entitlement Spl Assmt
Bonds, Series B, Zero Coupon, 02/01/00, MBIA Insured 250,000 215,308
Dade County, FL, Guaranteed Entitlement Spl Assmt
Bonds, Series B, Zero Coupon, 02/01/01, MBIA Insured 250,000 205,720
Dade County, FL HFA, Single Family Mortgage RB,
Series B, 7.50%, 03/01/99, GNMA Collateralized 5,000 5,114
Dade County, FL, Public Improv RB, 7.10%, 06/01/00,
FGIC Insured 70,000 74,253
Dade County, FL School District, GO Bond, 6.90%,
07/01/97 65,000 66,279
Dade County, FL School District, GO Bond, 4.00%,
07/15/99, MBIA Insured 100,000 99,514
Dade County, FL Solid Waste System, Solid
Waste RB, 6.60%, 10/01/98 50,000 51,432
Dade County, FL, Water & Sewer RB, 4.75%,
10/01/99, FGIC Insured 100,000 101,411
Dade County, FL Health Facilities Auth, Hospital
RB, (Catholic Health & Rehabilitation Inc.), 7.45%,
08/15/99, Allied Irish Banks, PLC, LOC 50,000 53,577
Dade County, FL Health Facilities Auth, Hospital
RB, (Baptist Hospital Miami Project), 7.375%,
05/01/97, Pre-refunded @ 102 100,000 103,791
Dade County, FL Health Facilities Auth, Hospital
RB, (Baptist Hospital Miami Project), 4.00%,
05/15/97, MBIA Insured 65,000 65,099
Daytona Beach, FL, Water & Sewer RB, 4.625%,
11/15/98, AMBAC Insured 75,000 75,856
Municipal Bonds (Continued) PrincipalAmount Value
Delray Beach, FL, GO Bond, (Decade of Excellence
Program), 6.80%, 02/01/00, Pre-refunded @ 102 50,000 54,541
Duval County, FL School District, GO Bond,
5.625%, 08/01/00, AMBAC Insured 75,000 77,933
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%,
01/01/97 110,000 109,992
Escambia County, FL, Public Improv RB, 4.75%,
01/01/99 220,000 219,941
Escambia County, FL, Public Improv RB, Series A,
5.00%, 01/01/00 250,000 251,800
Escambia County, FL School Board, Municipal Lease
Obligation, Certificate of Participation, 5.80%,
02/01/00, FSA Insured 50,000 52,116
First FL Governmental Financing Commission, 7.05%,
07/01/98, Pre-refunded @ 102 100,000 106,819
Flagler County, FL, Sales Tax Improv Infrastructure
Surtax RB, 6.30%, 12/01/97, MBIA Insured 100,000 102,646
Florida HFA, Single Family Mortgage RB, Series B,
5.00%, 01/01/98, GNMA/FNMA Collateralized 285,000 287,844
Florida HFA, Housing RB, Single Family Mortgage RB,
1995 Series A, 5.70%, 01/01/01, GNMA Collateralized 75,000 77,374
Florida HFA, Homeowner Mortgage & RB, 1995 Series
1A, 4.75% 07/01/01 100,000 100,000
Florida HFA, Rfdg Homeowner Mortgage & RB,
Series 2, 5.20%, 01/01/02 295,000 298,304
Florida HFA, Housing RB, (Turtle Creek Apartments
Projects), 1996 Series C, 4.75%, 05/01/00,
AMBAC Insured 85,000 85,245
Florida HFA, Housing RB, (Lake Carlton Arms),
7.375%, 12/01/99, National Life Insurance Co., GTY,
Mandatory Tender @ 100 65,000 65,785
Florida HFA, Housing RB, (Crossings Project),
6.625%, 02/01/97, Connecticut General Life Insurance,
GTY, Mandatory Tender @ 100 55,000 55,397
Florida State, Pollution Ctrl RB, Series W, 7.00%,
07/01/98 140,000 146,742
Florida State Board of Education, GO Bond, Series B,
7.00%, 06/01/99, Pre-refunded @ 102 75,000 81,434
Florida State Board of Education, GO Bond, Series A,
Zero Coupon, 06/01/00 Pre-refunded @ 37.658 100,000 31,535
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 66,637
Florida State Board of Education, GO Bond, Series A,
7.25%, 06/01/00, Pre-refunded @ 102 185,000 205,787
Florida State Board of Education, GO Bond, Series A,
5.50%, 01/01/01 250,000 259,385
Florida State Board of Education, GO Bond, Series C,
5.90%, 05/01/00, Escrowed to Maturity 25,000 25,438
Florida State Department of General Services,
Division of Facilities Management, (FL Facilities
Pool), Series C, 4.50%, 09/01/00, FSA Insured 100,000 100,379
Florida Correctional Privatization Commission,
Certificates of Participation, (350 Bed Youthful
Offender Correctional Facility, Columbia County
Project), 4.125%, 08/01/99, AMBAC Insured 200,000 200,092
Municipal Bonds (Continued) PrincipalAmount Value
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 95,024
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 110,000 109,847
Florida State Turnpike Auth, Transportation RB,
7.50%, 07/01/01 250,000 271,945
Florida State Turnpike Auth, Transportation RB,
7.50%, 07/01/99, Pre-refunded @ 102 40,000 44,010
Ft. Myers, FL, Electric Util Rfdg RB, Series B,
Zero Coupon, 10/01/99, Pre-refunded @ 26.012 40,000 9,052
Ft. Myers, FL, Public Improv RB, Series 1996A,
4.40%, 12/01/99, AMBAC Insured 150,000 150,510
Gainesville, FL Util System, Electric Util RB,
Series A, 5.90%, 10/01/00 50,000 52,761
Hernando County, FL, Solid Waste RB, 7.10%,
10/01/00, Pre-refunded @ 102 100,000 111,490
Hillsborough County, FL Aviation Auth, Airport RB,
(Tampa International Arpt), Series B, 7.00%,
10/01/99, Pre-refunded @ 102 75,000 82,034
Hillsborough County, FL Aviation Auth, Airport RB,
(Tampa International Arpt), 6.30%, 10/01/00,
FGIC Insured 75,000 80,240
Hillsborough County, FL School Board, Certificates
of Participation, 4.60%, 07/01/97, MBIA Insured 100,000 100,552
Indian River County, FL, Solid Waste RB, 7.10%,
06/01/99, FGIC Insured 200,000 204,424
Indian Trace Community Development District, FL,
Water Management-Special Benefit Bonds, Series A,
5.20%, 05/01/02, MBIA Insured 35,000 35,874
Indian Trail Water Control District, FL, Public
Improv RB, (Unit of Development No.1), Series
1990, 7.875%, 07/01/00 25,000 26,381
Jacksonville, FL Electric Auth, Electric Util RB,
Issue 2, Series 11, 5.00%, 10/01/98 100,000 101,676
Jacksonville, FL Electric Auth, Electric Util RB,
Issue 2, Series 6, 6.40%, 10/01/00 250,000 267,058
Jacksonville, FL, Guaranteed Entitlement Rfdg RB,
Series A, 4.40%, 10/01/01, AMBAC Insured 100,000 99,734
Jacksonville, FL Health Facilities Auth, Hospital
RB, (Riverside Hospital), 7.25%, 10/01/98,
Escrowed to Maturity 30,000 31,624
Jacksonville, FL Health Facilities Auth, Hospital RB,
(St. Lukes Hospital Association), 5.90%,11/15/96 100,000 100,076
Jacksonville, FL Health Facilities Auth, Hospital RB,
(St. Lukes Hospital Association), 6.30%,11/15/99 50,000 52,659
Jacksonville, FL Health Facilities Auth, Hospital RB,
(National Benevolent Association- Cypress Village
Project), Series 1996A, 4.50%, 12/01/98 100,000 100,095
Jacksonville, FL Health Facilities Auth, Hospital RB,
(National Benevolent Association- Cypress Village
Project), Series 1996A, 4.75%, 12/01/99 115,000 115,159
Jacksonville, FL Health Facilities Auth, Hospital RB,
(National Benevolent Association- Cypress Village
Project), Series 1996A, 5.00%, 12/01/00 125,000 125,224
Jacksonville, FL Health Facilities Auth, Hospital RB,
(National Benevolent Association- Cypress Village
Project), Series 1996A, 5.20%, 12/01/01 130,000 130,000
Key West, FL Util Board, Electric Util RB, 9.75%,
04/01/00, Pre-refunded @ 103 200,000 239,112
Municipal Bonds (Continued) PrincipalAmount Value
Largo, FL, Hospital RB, (Sun Coast Health System)
5.75%, 03/01/01 285,000 289,885
Lee County, FL HFA, Single Family Mortgage RB,
(Multi-County Program), Series A, Subseries 2,
5.25%, 03/01/02, GNMA Collateralized 60,000 60,943
Lee County, FL HFA, Single Family Mortgage RB,
(Multi-County Program), Series 1996A, Subseries 3,
5.00%, 03/01/00, GNMA Collateralized 50,000 50,118
Lee County, FL HFA, Single Family Mortgage RB,
(Multi-County Program), Series 1996A, Subseries 3,
5.10%, 03/01/01, GNMA Collateralized 55,000 55,166
Lee County, FL School Board, Certificates of
Participation, Series A, 6.00%, 08/01/98, FSA Insured 100,000 102,863
Lee County, FL School Board, Certificates of
Participation, 4.75%, 08/01/98, FSA Insured 100,000 101,133
Lee County, FL School Board, Certificates of
Participation, 4.875%, 08/01/99, FSA Insured 100,000 101,977
Lee County, FL School Board, Certificates of
Participation, Series A, 4.30%, 08/01/01, FSA Insured 50,000 49,658
Lee County, FL Hospital Board, Hospital RB,
Lee Memorial Hospital), 7.10%, 04/01/98, BIG Insured 50,000 52,165
Lee County, FL Solid Waste System, Solid Waste RB,
Series A, 6.30%, 10/01/97, MBIA Insured 100,000 102,155
Lee County, FL Solid Waste System, Solid Waste RB,
Series A, 4.50%, 10/01/01, MBIA Insured 95,000 94,666
Leesburg, FL, Hospital Rfdg RB, (Leesburg Regional
Medical Center Project), Series A, 4.80%, 07/01/00 250,000 250,985
Leon County, FL School District, GO Bond, 6.00%,
07/01/02 250,000 265,290
Manatee County, FL HFA, Single Family Mortgage RB,
4.00%, 05/01/98, GNMA Collateralized 40,000 39,879
Manatee County, FL HFA, Single Family Mortgage RB,
Subseries 1, 5.00%, 05/01/99, GNMA Collateralized 45,000 45,410
Manatee County, FL HFA, Single Family Mortgage RB,
Subseries 1, 5.375%, 05/01/02, GNMA Collateralized 45,000 45,706
Martin County, FL, GO Bond, 6.50,%, 02/01/00,
Pre-refunded @ 102 50,000 54,091
Martin County, FL Health Facilities Auth, Hospital RB,
(Martin Memorial Hospital), Series A, 7.00%, 11/15/00,
MBIA Insured 175,000 191,259
Martin County, FL, Gas Tax RB, 4.00%, 07/01/00,
AMBAC Insured 100,000 98,721
Martin County, FL, Combined Special Assessment RB,
4.40%, 11/01/97 100,000 100,155
Martin County, FL, Combined Special Assessment RB,
5.30%, 11/01/01 150,000 151,047
Maryland Energy Financing Administration, Solid
Waste RB, (Wheelabrator Water Technologies Baltimore
L.L.C. Projects), Series 1996, 3.90%, 12/01/96 150,000 150,035
Miami Beach, FL Redevelopment Agcy, Tax Increm RB,
(City Center/Historic Conv Village), 4.00%, 12/01/96 150,000 149,973
Miami Beach, FL Redevelopment Agcy, Tax Increm RB,
(City Center/Historic Conv Village), 4.20%, 12/01/97 100,000 100,000
Miami Beach, FL Redevelopment Agcy, Tax Increm RB,
(Historic Conv Village), Series B, 5.25%,12/01/01 160,000 160,914
Municipal Bonds (Continued) Principal Amount Value
Miami, FL, GO Bond, 6.70%, 08/01/97 350,000 357,119
Miami, FL, Special Rev Rfdg Bond, 7.30%, 01/01/01,
MBIA Insured 100,000 105,686
Nassau County, FL, Certificates of Indebtedness,
5.50%, 12/01/96 107,000 107,016
North Miami, FL Health Facilities Auth, Hospital RB,
(Catholic Health Services Obligation Group),
4.80%, 08/15/01, SunTrust Bank, Central Florida, LOC 100,000 99,486
Ocala, FL, Power Supply Electric Util RB, 6.75%,
10/01/98, MBIA Insured 25,000 25,563
Okaloosa County, FL, Water & Sewer RB, 7.15%,
01/01/99, Pre-refunded @ 102 50,000 53,934
Okeechobee, FL Util Auth, Util Sys Acquisition &
Improv RB, Series 1995, 4.25%,10/01/00, MBIA Insured 100,000 99,676
Orange County, FL Health Facilities Auth, Hospital RB,
(Orlando Regional Medical Center Project),
6.15%, 10/01/97, Pre-refunded @ 102 100,000 104,165
Orange County, FL Health Facilities Auth, Hospital RB,
(Adventist Health Systems Sunbelt Obligated Group),
4.40%, 11/15/97, AMBAC Insured 100,000 104,700
Orange County, FL Health Facilities Auth, Hospital RB,
(Adventist Health Systems Sunbelt Obligated Group),
6.60%, 11/15/98, AMBAC Insured 100,000 100,695
Orange County, FL HFA, Single Family Mortgage RB,
5.50%, 10/01/00, GNMA/FNMA Collateralized 100,000 102,791
Orange County, FL HFA, Single Family Mortgage RB,
Series A, 5.05%, 04/01/02, GNMA/FNMA Collateralized, 100,000 100,702
Orange County, FL HFA, Housing RB, (Post Lake
(Orlando)), 7.50%, 01/01/98, The Bank of Tokyo,
Limited, LOC 50,000 51,161
Orlando, FL Utility Commission, Electric Util RB,
Series B, 4.15%, 10/01/97 50,000 50,119
Palm Beach County, FL, GO Bond, Series B, 3.40%,
07/01/97 100,000 99,768
Panama City - Bay County, FL, Airport RB, 4.25%,
10/01/99, MBIA Insured 75,000 74,916
Pensacola, FL Health Facilities Auth, Hospital RB,
(Daughters of Charity National Health), 4.60%,
01/01/00 300,000 301,212
Pinellas County, FL Health Facilities Auth,
Hospital RB, (Morton Plant Health System Project)
4.70%, 11/15/00, MBIA Insured 100,000 100,803
Pinellas County, FL Health Facilities Auth, Hospital
RB, (Sunshine Village Nursing Home), 6.50%, 10/01/99 130,000 129,854
Pinellas County, FL, Resource Recovery RB, Series A,
6.70%, 10/01/01 MBIA Insured 300,000 328,599
Plantation, FL, Water & Sewer RB, Capital Appreciation
Series B, Zero Coupon, 03/01/97, MBIA Insured 100,000 98,674
Port Orange, FL, Water & Sewer RB, 6.00%, 10/01/98,
AMBAC Insured 100,000 103,688
Port St. Lucie, FL, Water & Sewer RB, Series 1996A,
Zero Coupon, 09/01/01, FGIC Insured 150,000 118,820
Puerto Rico Commonwealth Infrastructure Financing
Auth, Spl Tax RB, 7.60%, Series A, 07/01/00 200,000 212,478
Puerto Rico Housing Bank & Finance Agency, Single
Family Mortgage RB, 4.50%, 12/01/98 85,000 84,563
St. Johns County, FL IDA, Hospital RB, (Flagler
Hospital), 5.00%, 08/01/97 100,000 100,721
St. Lucie County, FL School District, GO Bond,
Series A, 3.80%, 02/01/00, FSA Insured 100,000 97,841
Municipal Bonds (Continued)
Principal
Amount
Value
St. Petersburg, FL Health Facilities Auth, Hospital RB,
(Allegheny Health - St. Anthony), Series C, 7.75%,
01/01/98, Pre-refunded @ 102 40,000 42,478
St. Petersburg, FL Professional Sports Facility, Sales
Tax RB, Series 1995, 5.00%, 10/01/00, MBIA Insured 100,000 102,350
Sarasota County, FL Health Facilities Auth, (Sunnyside
Properties Project), Series 1995, 5.50%,05/15/01 500,000 493,490
Sarasota County, FL Utility System, Electric Util RB,
Zero Coupon, 06/01/99, Pre-refunded @ 22.7283 400,000 80,620
Sarasota County, FL, Electric Util RB, 7.10%,
06/01/98, Pre-refunded @ 102 100,000 106,664
Seacoast, FL Util Auth, Water & Sewer RB, Series A,
Zero Coupon, 03/01/99, Pre-refunded @ 27.8751 315,000 79,689
Seminole, FL Water Control District, Special Assessment
Bonds, (Unit of Development No.2), Series 1996,
5.95%, 08/01/01 290,000 289,495
Tallahassee, FL Health Facilities, Hospital RB,
(Tallahassee Memorial Regional Medical Center),
Series B, 5.30%, 12/01/00, MBIA Insured 75,000 77,240
Tallahassee, FL Municipal Airport, Airport Rfdg RB,
4.60%, 10/01/01, AMBAC Insured 165,000 165,000
Tallahassee, FL, Electric Util RB, Series A,
4.90%, 10/01/98 50,000 50,747
Tampa, FL Sports Auth, IDB, (Tampa Bay Arena Project),
4.30%, 04/01/99, MBIA Insured 80,000 80,362
University Community Hospital Inc. FL, Hospital RB,
6.80%, 09/01/99, Escrowed to Maturity 100,000 106,539
Winter Haven, FL, Water & Sewer RB, 6.50%, 07/01/00,
AMBAC Insured 25,000 26,306
Winter Springs, FL, Water & Sewer RB, 7.15%,
04/01/00, Pre-refunded @ 102 100,000 110,513
Total Investments (Cost $16,603,768) $16,681,933
Summary of Ratings:
AAA (69%), AA (14%) A (4%), BBB (10%),
Non-rated (3%)
Average Portfolio Maturity: 2.95 Years
Statements of Assets and Liabilities
Money Fund ShortTerm Fund
ASSETS
Investments in securities, at value
(cost $137,721,651 and $16,603,768
respectively) $ 137,721,651 $ 16,681,933
Receivables:
Interest 1,133,092 236,597
Fund shares sold 59,975 1,622,246
From manager for reimbursable costs -- 4,721
Organization costs, net of accumulated
amortization 17,526 17,526
Total assets 138,932,244 18,563,023
LIABILITIES
Payable for investment securities purchased 1,719,003 485,659
Payable for fund shares redeemed 3,489 --
Dividend payable 388,352 65,627
Funds advanced by custodian 173,625 463,116
Funds advanced by manager 50,191 --
Total liabilities 2,334,660 1,014,402
NET ASSETS
Net assets $ 136,597,584 $ 17,548,621
Number of shares outstanding 136,597,584 1,757,203
Net asset value, offering price and redemption
price per share $ 1.00 $ 9.99
Statements of Operations
Money Fund ShortTerm Fund
INVESTMENT INCOME
Income:
Interest $ 2,196,507 $ 305,175
Expenses:
Investment advisory fee (Note 2) 307,691 40,601
Custodian fees (Note 3) 19,891 7,032
Distribution fees (Note 2) 42,556 11,408
Transfer agency fees and expenses (Note 2) 42,099 6,810
Printing costs 2,552 284
Professional fees 10,175 7,162
Insurance 1,855 207
Registration and filing fees 22,145 10,462
Trustees' fees and expenses 3,960 440
Amortization of organization costs 4,260 4,260
Other expenses 13,220 2,098
Total expenses 470,404 90,764
Expense reimbursements fees (Note 2) (341,049) (75,368)
Custodian fees paid indirectly (Note 3) (6,279) (1,862)
Net expenses 123,076 13,534
Net investment income $ 2,073,431 $ 291,641
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments 170 (412)
Unrealized appreciation (depreciation) on investments -- 62,485
Net realized and unrealized gain (loss) on investments 170 62,073
Increase in net assets from operations $ 2,073,601 $ 353,714
Statements of Changes in Net Assets
MONEY FUND SHORT TERM FUND
Six Months Six Months
Ended Year Ended Year
10/31/96 Ended 10/31/96 Ended
(Unaudited) 4/30/96 (Unaudited) 4/30/96
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income ... $2,073,431 $4,212,055 $291,641 $562,826
Net realized gain (loss)
on investments 170 -- (412) 3,238
Unrealized appreciation
of investments -- -- 62,485 44,890
Increase in net assets
from operations 2,073,601 4,212,055 353,714 610,954
Dividends to shareholders
from net investment income..(2,073,431) (4,212,055) (291,641) (562,826)
Fund share transactions
(Note 4) 22,654,407 8,296,539 5,142,720 1,182,701
Net increase in net
assets 22,654,577 8,296,539 5,204,793 1,230,829
Net Assets:
Beginning of period 113,943,177 105,646,638 12,343,828 11,112,999
End of period $136,597,584 $113,943,177 $17,548,621 $12,343,828
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. 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 property 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 October
31, 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.
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, 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, 1996,
management fees totalled $307,691 and $40,601 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, 1996, fees under this
agreement amounted to $21,043 and $2,374 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 distribution 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 Plans
been operational.
During the six month period ended October 31, 1996, the Money Fund and the
ShortTerm Fund paid $668 and $3,527, 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, 1996, custodian fees were reduced by
earnings credits of $6,279 and $1,862 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
$136,597,584 and $17,570,265, respectively. Transactions in Fund shares for
the six months ended October 31, 1996 and the year ended April 30, 1996 were
as follows:
MONEY FUND* SHORTTERM FUND
SHARES AMOUNT
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
10/31/96 4/30/96 10/31/96 4/30/96 10/31/96 4/30/96
Sold 135,112,829 249,259,567 1,182,806 1,964,966 $11,789,261 $19,623,819
Issued on
reinvested
dividends 1,879,457 4,189,167 26,204 52,842 260,643 528,044
Redeemed (114,337,879)(245,152,195) (693,855)(1,899,770)(6,907,184)(18,969,162)
Net increase
(decrease) 22,654,407 8,296,539 515,155 118,038 $5,142,720 $1,182,701
* 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, 1996
were $8,845,327 and $6,351,775, respectively. At October 31, 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 $78,165 for
the ShortTerm Fund, consisted of aggregate gross unrealized appreciation and
(depreciation) of $91,943 and ($13,778), respectively. As of October 31, 1996,
the accumulated net realized loss was $99,809 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.
6. Financial Highlights
Money Fund
Six Months Period
Ended Year Year from
Per share operating performance 10/31/96 Ended Ended 11/22/93*
(for a share outstanding (unaudited) 4/30/96 4/30/95 to 4/30/94
throughout the period)
Net asset value,
beginning of period........ $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net Investment Income............ 0.017 0.036 0.035 0.011
Net realized and unrealized
gain (loss) on investments....... -- -- -- --
Total from investment operations. 0.017 0.036 0.035 0.011
Less distributions:
Dividends from net investment income..(0.017) (0.036) (0.035) (0.011)
Net asset value, end of period........$1.00 $1.00 $1.00 $1.00
Total return dagger...................3.49% 3.69% 3.59% 2.49%
Ratios/Supplemental Data.............
Net assets at end of period (000's).$136,598 $113,943 $105,647 $23,516
Ratios to Average Daily Net Assets dagger
Expenses............................ .20% .20% .07% .00%
Expenses (Before reimbursement)..... .77% .80%double1.04% 1.96%
dagger
Net Investment Income...............3.37% 3.62% 3.63% 2.55%
6. Financial Highlights (continued)
ShortTerm Fund
Six Months Year Year Period
Per share operating performance Ended Ended Ended from
(for a share outstanding 10/31/96 4/30/96 4/30/95 11/22/93*
throughout the period) (unaudited) to 4/30/94
Net asset value, beginning of
period........ $9.94 $9.89 $9.86 $10.00
Income from investment operations:
Net Investment income.......... 0.22 0.42 0.42 0.16
Net realized and unrealized
gain (loss)
on investments............... 0.05 0.05 0.03 (0.14)
Total from investment
operations........ 0.27 0.47 0.45 0.02
Less distributions:
Dividends from net
investment income..... (0.22) (0.42) (0.42) (0.16)
Net asset value, end of period.... $9.99 $9.94 $9.89 $9.86
Total return dagger............... 4.07% 4.85% 4.66% 0.49%
Ratios/Supplemental Data..........
Net assets at end of
period (000's).......... $17,549 $12,344 $11,113 $10,757
Ratios to Average Daily Net Assets dagger
Expenses......................... .20% .20% .07% .05%
Expenses (Before reimbursement).. 1.34% 1.42%double 1.50% 2.77%
dagger
Net Investment Income............ 4.31% 4.25% 4.25% 3.79%
Portfolio turnover rate........... 34.5% 83.4% 35.9% 10.9%
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*Commencement of operations
dagger Figures are annualized for periods less than a year.
double dagger Effective for the year ended April 30, 1996, expense ratios
(before reimbursement) no longer reflect reductions from custodian fee offset
arrangements.
