The Florida
TaxFree Funds
The Florida TaxFree ShortTerm Fund
The Florida TaxFree Money Market Fund
Distributor: William R. Hough & Co.
100 Second Avenue South, Suite 800
St. Petersburg, Florida 33701
(800) 557-7555
Semi-Annual Report
October 31, 1998
This report must be preceded or accompanied by a current prospectus of The
Florida TaxFree Funds.
CONTENTS
President's Message 1
The Florida TaxFree Money Market Fund Statement of Investments
Variable Rate Demand Notes 3
Municipal Bonds 5
The Florida TaxFree ShortTerm Fund Statement of Investments
Variable Rate Demand Notes 9
Municipal Bonds 9
Statements of Assets and Liabilities 17
Statements of Operations 18
Statements of Changes in Net Assets 19
Notes to Financial Statements 20
Dear Shareholder:
We are pleased to present the Semi-Annual Report on The Florida TaxFree Funds.
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 income and Florida Intangible Tax liabilities.
The Florida TaxFree Money Market Fund
Total net assets of the Fund grew during the past year to $169.2 million, as of
October 31, 1998. This compares with $149.4 million on April 30, 1998 and
$154 million on October 31, 1997.
IBC Financial Data, Inc., a respected mutual fund performance and statistical
reporting company, ranks money market fund performance by category. We are
pleased to report that, for the 12 months ending September 30, 1998, The
Florida TaxFree Money Market Fund was ranked by IBC in the top 4% out of a
total of approximately 331 tax-free funds tracked by that firm. Past
performance, however, is no guarantee of future results, and had certain
fees and expenses not been reimbursed by the Adviser, the yield and ranking
would be lower.
The 7 day average yield of the Fund was 3.02% as of October 31, 1998. For
investors in the 36% federal tax bracket who have Florida intangible assets
of $200,000 or more, the tax equivalent yield was 4.92%.
The Florida TaxFree ShortTerm Fund
As of October 31, 1998, total net assets for the Fund were $28.9 million
compared with assets of $22.9 million on April 30, 1998 and $30 million on
October 31,1997. The portfolio had a dollar-weighted average maturity of
2.32 years and a 30 day SEC yield of 3.51% on October 31, 1998. This yield
equates to a tax equivalent yield of 5.68% for a Floridian in the 36%
federal tax bracket with Florida intangible assets of $200,000 or more.
The Florida TaxFree ShortTerm Fund is a variable net asset value mutual
fund, and therefore the value of shares fluctuates with the movements of the
short-term municipal bond market. The net asset value per share was $10.13
on October 31, 1998, compared with $10.05 on April 30, 1998, and $10.06 on
October 31, 1997, contributing to a 4.99% cumulative total return on the
Fund for the year ended October 31, 1998. 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 31,1998 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, 1998 was 24.58%. This represents a return of 4.97% 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 $12,457.70 on October 31, 1998, including reinvestment of all
distributions.
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 completely exempt from the Florida
Intangible Tax by investing in only Florida or other exempt issues at the
appropriate time.
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
The Florida TaxFree Money Market Fund
Statement of Investments
October 31, 1998 (Unaudited)
Variable Rate Demand Notes (46%) Principal
Amount Value
Broward County, FL Education, Research,
and Training Auth, IDB, (The International
Game Fish Association Project),Series 1997,
3.20%, 08/01/04, NationsBank, N.A., LOC
2,000,000 2,000,000
Broward County, FL, IDB, (Pavermodule,
Inc. Project), 3.45%, 09/01/04,
NationsBank, N.A., LOC
740,000 740,000
Broward County, FL, IDB, (W.R. Bonsal
Company Project), 3.30%, 09/01/08,
NationsBank, N.A., LOC
1,300,000 1,300,000
Collier County, FL HFA, Housing RB,
(River Reach), 3.20%, 12/01/15, Morgan
Guaranty Trust Co., LOC
1,900,000 1,900,000
Collier County, FL HFA, Housing RB,
(Saddlebrook Project), 3.50%, 12/25/30,
Texas Commerce Bank, N.A., LOC
4,900,000 4,900,000
Dade County, FL IDA, Pollution Ctrl RB,
(Florida Power & Light), 3.70%, 04/01/20
1,000,000 1,000,000
Dade County, FL Health Facilities Auth,
Hospital RB, (Miami Children's Hospital),
3.75%, 09/01/20, Barnett Bank of South FL, LOC
4,195,000 4,195,000
Dade County, FL IDA, IDB, (Dolphins Stadium),
Series D, 3.10%, 01/01/16, Societe Generale, LO
2,100,000 2,100,000
Dade County, FL IDA, IDB, (Jay W. Lotspeich
Project), 3.85%, 12/01/06,
Credit Commercial de France, LOC
500,000 500,000
Dade County, FL IDA, IDB, (Arlington Sales),
3.85%, 06/01/08, Credit Commercial de France, LOC
1,150,000 1,150,000
Dade County, FL IDA, Industrial Development
RB, (Pot Co.), 3.85%, 12/01/06, Credit
Commercial de France, LOC
500,000 500,000
Dade County, FL IDA, IDB, (Dynacolor
Graphics Project), 3.85%, 06/01/99,
Credit Commercial de France, LOC
475,000 475,000
Dade County, FL IDA, IDB, (Spectrum Programs
Inc. Project), 3.15%, 10/01/16,
NationsBank, N.A., LOC
900,000 900,000
Florida HFA, Housing RB, (Clear Lake),
Series D, 3.15%, 12/01/09, Continental
Casualty, GTY
1,000,000 1,000,000
Florida HFA, Housing RB, (Sun Pointe
Cove Apartments Project), Series 1985XX,
3.10%, 06/15/25, FNMA Collateralized
1,300,000 1,300,000
Florida HFA, Housing RB, (Lakes of
Northdale Project), Series D, 3.25%,
06/01/07, SouthTrust Bank of AL, LOC
1,300,000 1,300,000
Florida HFA, Housing RB, (Springs Colony
Project), 1985 Series FF, 3.10%,
09/15/26, FNMA Collateralized
1,000,000 1,000,000
Florida Housing Finance Corp, Housing RB,
(South Pointe Project), Series J, 3.15%,
02/15/28, FNMA Collateralized
1,000,000 1,000,000
Florida State Board of Education, GO Bonds,
(Trust Receipts - Series SGA 67), 3.75%, 0
6/01/22, Societe Generale, SBPA
4,700,000 4,700,000
Florida State Board of Education, GO Bonds,
(Floater Certificates - Series 32), 3.31%,
06/01/28, Morgan Stanley, Liquidity Facility
2,500,000 2,500,000
Hillsborough County, FL IDA, Pollution
Control RB, (Reynolds Metals Company),
3.15%, 12/01/15, Dresdner Bank, A.G., LOC
1,000,000 1,000,000
Hillsborough County, FL IDA, Pollution
Ctrl RB, (Tampa Electric Co.), 3.70%, 05/15/18
2,000,000 2,000,000
Hillsborough County, FL IDA, Pollution
Ctrl RB, (Tampa Electric Co.), 3.85%, 11/01/20
700,000 700,000
Hillsborough County, FL IDA, IDB,
(Serigraphic Arts, Inc.), 3.85%, 09/01/07,
Credit Commercial de France, LOC
450,000 450,000
Variable Rate Demand Notes (Continued)
Principal
Amount Value
Hillsborough County, FL IDA, Industrial
Development RB, (Berry Packaging Inc.),
3.30%, 07/01/17, NationsBank, N.A., LOC
1,200,000 1,200,000
Inland Protection Financing Corp, FL,
Solid Waste RB, (Series BTP-273 Class A
Certificates), Series 1997, 3.30%,
01/01/04, The Bank of New York,
Liquidity Facility
9,320,000 9,320,000
Miami-Dade County, FL IDA, Industrial
Development RB, (Professional
Modification Services Project),Series 1998,
3.40%, 08/01/18, Bankers Trust Company, LOC
11,000,000 11,000,000
Miami, FL Health Facilities Auth,Hospital
RB, (Mercy Hospital Project),Series 1998,
3.45%, 08/01/20, NationsBank, N.A., LOC
2,000,000 2,000,000
Orange County, FL Educational Facilities
Auth, Higher Education RB, (Rollins College
Project), 3.15%, 05/01/25, Barnett Bank, N.A., LOC
2,000,000 2,000,000
Orange County, FL HFA, Housing RB,
(Post Lake Apartments Project), 3.10%,
06/01/25, FNMA Collateral Agreement, GTY
1,225,000 1,225,000
Orange County, FL HFA, Housing RB,
(Andover Place Apartments Project),
Series 1998F, 3.05%, 07/01/28,
NationsBank, N.A., LOC
1,000,000 1,000,000
Pasco County, FL School Board,
Certificates of Participation, 3.05%,
08/01/26, AMBAC Insured, Landesbank Hessen, SBPA
1,000,000 1,000,000
Pinellas County, FL HFA, Housing RB,
(Lynn Lake II), 3.35%, 07/01/11,
NationsBank of Georgia, N.A., LOC
1,500,000 1,500,000
Riviera Beach, FL, IDB, (Dade Paper &
Bag Co.), 3.80%, 08/01/01, Credit
Commercial de France, LOC
200,000 200,000
St. Lucie County, FL, Pollution
Control RB, (Florida Power & Light),
3.85%, 01/01/27
5,400,000 5,400,000
Sumter County, FL IDA, IDB, (Great
Southern Wood, FL, Inc.), 3.45%,
04/01/05, SouthTrust Bank, LOC
500,000 500,000
Tamarac, FL, IDB, (Tampa Bay Business
Center, Inc. Project), 3.30%, 08/01/15,
NationsBank of FL, NA, LOC
1,600,000 1,600,000
Volusia County, FL IDA, IDB, (RS Displays
Inc. Project), 3.85%, 06/01/09, Credit
Commercial de France, LOC
725,000 725,000
Total Variable Rate Demand Notes $ 77,280,000
Principal
Municipal Bonds (54%) Amount Value
Bay County, FL School District, Public
Improv RB, 3.80%, 06/01/99, FSA Insured
3,640,000 3,640,570
Boynton Beach, FL, Public Improv RB,
4.10%, 11/01/98, AMBAC Insured
100,000 100,000
Bridgeview, IL Park District, GO Bonds,
(Alternate Revenue Source), Series 1998,
3.75%, 12/01/98, MBIA Insured
250,000 250,000
Broward County, FL, GO Bonds, Series C,
5.30%, 01/01/99
2,725,000 2,732,030
Broward County, FL, Sales Tax Revenue
Commercial Paper, Series A, 3.45%,
11/13/98, Bank of Tokyo-Mitsubishi, LOC
4,163,000 4,163,000
Broward County, FL, Sales Tax Revenue
Commercial Paper, Series A, 3.25%,
11/17/98, Bank of Tokyo-Mitsubishi, LOC
2,500,000 2,500,000
Broward County, FL School District,
GO Bonds, 7.125%, 02/15/99,
Pre-refunded @ 102
450,000 463,394
Charlotte County, FL School District,
GO Bonds, 3.90%, 03/01/99, FGIC Insured
50,000 50,000
Dade County, FL School Board, Certificates
of Participation, 4.30%, 05/01/99, AMBAC Insured
250,000 250,907
Dade County, FL School District, GO Bonds,
7.10%, 07/01/99, Pre-refunded @ 102
105,000 109,279
Dade County, FL School District, GO Bonds,
Series A, 4.80%, 06/01/99, MBIA Insured
50,000 50,397
Daytona Beach, FL, Water & Sewer RB,
6.80%, 05/15/99, Pre-refunded @ 102
50,000 51,917
Daytona Beach, FL, Water & Sewer RB,
6.80%, 05/15/99, Pre-refunded @ 102
100,000 103,826
Daytona Beach, FL, Water & Sewer RB,
6.90%, 05/15/99, Pre-refunded @ 102
50,000 51,786
Daytona Beach, FL, Water & Sewer RB,
6.90%, 05/15/99, Pre-refunded @ 102
200,000 207,778
Delray Beach, FL, GO Bonds, 6.70%,
02/01/99, FGIC Insured
25,000 25,195
Derry Township, PA School District,
GO Bonds, 3.80%, 11/15/98, FGIC Insured
270,000 270,000
East County Water Control District,
FL, Public Improv RB, (Lee County Drain),
5.00%, 11/01/98, Asset Guaranty Insured
500,000 500,001
Elyria, OH, GO Bonds, 3.90%, 12/01/98, FGIC Insured
100,000 100,000
Escambia County, FL HFA, Housing RB,
(University of West Florida Foundation,
Inc. Project), 3.50%, 06/01/99, MBIA Insured
260,000 260,000
Escambia County, FL HFA, Housing RB,
(Multi-County Program), Series A, 6.05%,
04/01/99, GNMA Collateralized
65,000 65,510
Escambia County, FL Utilities Auth,
Public Improv RB, Series D, 3.60%,
01/01/99, FGIC Insured
305,000 305,000
Escambia County, FL Utilities Auth,
Water & Sewer RB, Series B, 3.60%,
01/01/99, FGIC Insured
85,000 85,000
Escambia County, FL Utilities Auth,
Water & Sewer RB, Series C, 3.60%,
01/01/99, FGIC Insured
285,000 285,000
Escambia County, FL Utilities Auth,
Public Improv RB, Series 1998, 3.60%,
01/01/99, FSA Insured
510,000 510,000
Florida, State of, GO Bonds, 7.30%,
07/01/99, Pre-refunded @ 102
100,000 104,106
Florida, State of, GO Bonds, (Jacksonville
Transportation), 6.50%, 07/01/99
200,000 202,718
Florida State Board of Education,
GO Bonds, Series A, 5.90%, 06/01/99
520,000 527,742
Florida State Board of Education,
GO Bonds, (Motor Vehicle Tax),
Series A, 5.40%, 01/01/99
250,000 250,648
Florida State Board of Education,
GO Bonds, Series C, 4.80%, 06/01/99
300,000 301,946
Florida State Board of Education,
GO Bonds, Series B, 5.00%, 06/01/99
175,000 176,693
Florida State Board of Education,
GO Bonds, Series A, 4.70%, 01/01/99
60,000 60,068
Florida State Board of Education,
GO Bonds, Series F, 6.00%, 06/01/99
325,000 329,462
Florida State Board of Education,
Lottery RB, Series 1998A, 4.50%,
07/01/99, FGIC Insured
3,680,000 3,697,929
Florida State Board of Regents,
Housing RB, (University of Florida),
Series 1998, 6.00%, 07/01/99, MBIA Insured
180,000 182,903
Florida State Turnpike Auth, Transportation
RB, 7.25%, 07/01/99, Pre-refunded @ 102
200,000 209,654
Florida Local Government Commission,
Commercial Paper, (Florida Association
of Counties Pooled Program), 3.15%, 12/14/98,
First Union National Bank, LOC
1,320,000 1,320,000
Municipal Bonds (Continued) Principal
Amount Value
Florida Local Government Commission,
Commercial Paper, (Florida Association
of Counties Pooled Program), 3.50%,
11/02/98, First Union National Bank, LOC
2,530,000 2,530,000
Florida Local Government Commission,
Commercial Paper, (Florida Association
of Counties Pooled Program), 3.55%,
11/03/98, First Union National Bank, LOC
1,380,000 1,380,000
Florida Local Government Commission,
Commercial Paper, (Florida Pooled Program),
3.55%, 12/04/98, First Union National Bank, LOC
3,000,000 3,000,000
Florida Municipal Power Agency,
Commercial Paper, Pooled Loan Project,
3.35%, 12/03/98, First Union National Bank of NC, LOC
905,000 905,000
Florida State Division of Bond Finance,
Department of General Services, Public
Improv RB, (Dept of Natural Resources-
Preservation 2000), Series A, 5.75%,
07/01/99, MBIA Insured
125,000 127,046
Fort Lauderdale, FL, GO Bonds, 4.00%, 01/01/99
265,000 265,179
Fort Lauderdale, FL, GO Bonds, 4.00%, 07/01/99
260,000 260,580
Gainesville, FL, Electric Util RB,
Commercial Paper, (Utility System C),
3.15%, 11/10/98, Bank of America &
SunBank, Line of Credit
894,000 894,000
Gainesville, FL, Electric Util RB,
Commercial Paper, (Utility System C),
3.50%, 11/10/98, Bank of America & SunBank,
Line of Credit
2,754,000 2,754,000
Gainesville, FL, Electric Util RB,
Commercial Paper, (Utility System C),
3.30%, 12/14/98, Bank of America & SunBank,
Line of Credit
1,200,000 1,200,000
Hartford, WI, Bond Anticipation Notes,
(Dodge & Washington Counties), 3.75%, 12/01/98
1,030,000 1,030,000
Hillsborough County, FL Aviation Auth,
Airport RB, (Tampa International Arpt),
Series B, 7.00%, 10/01/99, Pre-refunded @ 102
650,000 683,476
Hillsborough County, FL School Board,
Certificates of Participation,
(Master Lease Program), Series A,
3.60%, 07/01/99, MBIA Insured
1,000,000 1,000,000
Homestead, FL, Special Assessment RB,
(Hurricane Andrew), 4.75%, 09/01/99,
Escrowed to Maturity
25,000 25,314
Indian River County, FL School District,
GO Bonds, 6.70%, 04/01/99, Pre-refunded @ 102
50,000 51,578
Indian Trace, FL Community Development
Dist, Special Assessment RB, (Water
Management - Special Benefit), Series A-1,
5.00%, 05/01/99, MBIA Insured, Swiss Bank, SBPA
100,000 100,706
Jacksonville, FL Elec Auth, Commercial
Paper, Series C-1, 3.30%, 11/04/98,
Morgan Guaranty, Liquidity Provider
1,000,000 1,000,000
Jacksonville, FL, GO Bonds, (Commercial
Paper Program), 3.10%, 01/04/99, Morgan
Guaranty, Credit Suisse, Bayerische
Landesbank Girozentrale, SunBank, LOC
3,000,000 2,996,303
Jacksonville, FL, Commercial Paper,
(Florida Power & Light), Series 1992,
3.25%, 11/02/98
3,000,000 3,000,000
King County, WA Water & Sewer District,
Water & Sewer RB, (Federal Way), 6.75%,
12/01/98, FGIC Insured
150,000 150,356
Lee County, FL HFA, Single Family Mortgage
RB, Series A-4, 3.70%, 12/15/98, GNMA
Collateralized, GIC: Transamerica
1,755,000 1,755,000
Lee County, FL Hospital Board of Directors,
Hospital RB, (Lee Memorial Hospital Project),
Commercial Paper, 1995 Series A, 3.65%,
11/05/98, SunTrust Bank, Central FL, LOC
1,500,000 1,500,000
Lee County, FL Hospital Board of Directors,
Hospital RB, (Lee Memorial Hospital Project),
Commercial Paper, Series C, 3.65%, 12/07/98,
SunTrust Bank, Central FL, LOC
3,000,000 3,000,000
Lee County, FL Hospital Board of Directors,
Hospital RB, (Lee Memorial Hospital Project),
Commercial Paper, Series D, 3.55%, 11/12/98,
SunTrust Bank, Central FL, LOC
1,800,000 1,800,000
Lee County, FL Hospital Board of Directors,
Hospital RB, (Lee Memorial Health System Project),
Commercial Paper, 1997 Series B, 3.45%, 12/02/98,
SunTrust Bank, Central FL, LOC
1,000,000 1,000,000
Municipal Bonds (Continued) Principal
Amount Value
Logan, UT, Water & Sewer RB, Series A,
3.70%, 12/15/98, AMBAC Insured
200,000 200,000
Maine Municipal Bond Bank, GO Bonds,
Series A, 7.25%, 11/01/98
750,000 750,000
Manalapan-Englishtown, NJ Regional
Board of Education, GO Bonds, 4.50%,
12/01/98, FGIC Insured
700,000 700,414
Manatee County, FL School District,
Sales Tax RB, 4.00%, 08/01/99, AMBAC Insured
150,000 150,435
Martin County, FL School District,
Tax Anticipation Notes, 4.00%, 06/30/99
1,000,000 1,002,547
Martin County, FL Health Facilities Auth,
Hospital RB, (Martin Memorial Medical
Center), Series A, 3.90%, 11/15/98, MBIA Insured
245,000 245,006
Martin County, FL Health Facilities Auth,
Hospital RB, (Martin Memorial Medical
Center), Series B, 3.90%, 11/15/98, MBIA Insured
420,000 420,011
Miami-Dade County, FL, Special Assessment
RB, 4.00%, 0701/99, MBIA Insured
965,000 967,157
Milwaukee, WI, GO Bonds, (Promissory
Notes), Series D7, 4.50%, 12/01/98
250,000 250,153
New Mexico Educational Assistance
Foundation, Student Loan RB, Series
Three A, 5.25%, 12/01/98
325,000 325,314
Ocoee, FL, Transportation RB, Series
1998, 3.35%, 10/01/99, MBIA Insured
150,000 150,000
Palm Beach County, FL, Public Improv
RB, (N. County Courthouse Expansion),
4.50%, 12/01/98, FSA Insured
315,000 315,202
Palm Beach County, FL Health Facilities
Auth, Hospital RB, (Pooled Hospital Loan
Project), Commercial Paper, 3.20%, 11/04/98,
MBIA Insured, Credit Suisse, SBPA
2,000,000 2,000,000
Parker, CO, Public Improv RB,
(Sales & Use Tax), 3.80%, 11/01/98,
MBIA Insured
530,000 530,000
Pensacola, FL, Natural Gas RB, Zero
Coupon, 12/01/98, Pre-refunded @ 84.015
20,000 16,738
Pocono Mountain, PA School District,
GO Bonds, 3.75%, 11/15/98, FSA Insured
210,000 210,000
Polk County, FL, Public Improv RB,
5.50%, 12/01/98, MBIA Insured
90,000 90,126
Port St. Lucie, FL, Water & Sewer RB,
5.25%, 05/01/99, Escrowed to Maturity
100,000 100,852
Puerto Rico, Commonwealth of, Public
Improv RB, Series A, 7.25%, 07/01/99,
Pre-refunded @ 101.50
155,000 161,704
Puerto Rico Industrial, Medical, and
Environmental Pollution Control Facilities
Financing Auth, IDB, (Key Pharmaceuticals),
3.75%, 12/01/98, Morgan Guaranty Trust Company,
LOC, Optional Tender @ 100
1,500,000 1,499,293
Punta Gorda, FL, Water & Sewer RB,
5.10%, 01/01/99, AMBAC Insured
100,000 100,203
Putnam County, FL Development Auth,
Pollution Ctrl RB, (Seminole Electric
Cooperative, Inc.), Series D, 3.65%,
12/15/98, National Rural Utilities
Cooperative Finance Corporation, GTY,
Mandatory Tender @ 100
1,000,000 1,000,000
Putnam County, FL Development Auth,
Pollution Ctrl RB, (Seminole Electric
Cooperative, Inc.), Series H-4, 3.30%,
3/15/99, National Rural Utilities Cooperative
Finance Corporation, GTY, Mandatory Tender @ 100
1,500,000 1,500,000
Randolph County, WV County Commission,
Hospital RB, (Davis Health System Inc.
Project), Series A, 3.80%, 11/01/98, FSA Insured
395,000 395,000
Reading, MA, GO Bonds, 5.60%, 12/15/98,
MBIA Insured
100,000 100,206
Ridley, PA School District, GO Bonds,
4.20%, 11/15/98, FGIC Insured
200,000 200,029
Royal Palm Beach, FL, Water & Sewer RB,
Series 1998, 4.00%, 10/01/99, MBIA Insured
100,000 100,533
St. Lucie County, FL, Commercial Paper,
(Florida Power & Light), 3.55%, 12/08/98
1,000,000 1,000,000
St. Lucie County, FL, Commercial Paper,
(Florida Power & Light), 3.50%, 11/16/98
2,250,000 2,250,000
St. Lucie County, FL, Commercial Paper,
(Florida Power & Light), 3.30%, 11/09/98
2,300,000 2,300,000
Municipal Bonds (Continued) Principal
Amount Value
St. Lucie County, FL, Commercial Paper,
(Florida Power & Light), 3.45%, 11/06/98
1,000,000 1,000,000
Sarasota County, FL Public Hosp Dist,
Commercial Paper, Series B, (Sarasota
Memorial Hospital), 3.30%, 12/04/98,
SunTrust Bank, Central Florida, LOC
1,000,000 1,000,000
Sarasota County, FL Public Hosp Dist,
Commercial Paper, Series 1996A,
(Sarasota Memorial Hospital), 3.40%,
11/09/98 SunTrust Bank, SBPA
6,500,000 6,500,000
Sarasota County, FL Utility System,
Water & Sewer RB, Zero Coupon, 06/01/99,
Pre-refunded @ 26.4863
140,000 36,274
Sarasota, FL, GO Bonds, 3.55%,
08/01/99, FSA Insured
80,000 80,000
Sarasota County, FL Utility System,
Electric Util RB, Zero Coupon, 06/01/99,
Pre-refunded @ 22.7283
75,000 16,697
Seacoast, FL Utility Auth, Water & Sewer
RB, Series A, Zero Coupon, 03/01/99,
Pre-refunded @ 67.6395
105,000 70,122
Seacoast, FL Utility Auth, Water & Sewer
RB, Series A, Zero Coupon, 03/01/99,
Pre-refunded @ 43.4845
50,000 21,486
Seacoast, FL Utility Auth, Water & Sewer
RB, Series A, Zero Coupon, 03/01/99,
Pre-refunded @ 34.7152
310,000 106,232
Seacoast, FL Utility Auth, Water & Sewer
RB, Series A, Zero Coupon, 03/01/99,
Pre-refunded @ 25.9095
130,000 33,265
Seacoast, FL Utility Auth, Water & Sewer
RB, Series A, Zero Coupon, 03/01/99,
Pre-refunded @ 24.0812
1,285,000 305,576
Strongsville, OH City School District,
GO Bonds, 4.05%, 12/01/98, MBIA Insured
100,000 100,024
Sunshine State Governmental Financing Comm,
Commercial Paper, 3.25%, 11/05/98,
AMBAC Insured, SBPA: Union Bank of Switzerland
and The Toronto-Dominion Bank
2,300,000 2,300,000
Sunshine State Governmental Financing Comm,
Commercial Paper, 3.35%, 11/06/98, FGIC
Insured, SBPA: Bank of Nova Scotia
1,260,000 1,260,000
Tampa, FL, Hospital RB, (Catholic Health
East), Series A-2, 3.75%, 11/15/98,
AMBAC Insured
900,000 900,000
University of Washington, Public Improv
RB, (Junior Lien Housing & Dining),
4.90%, 12/01/98, MBIA Insured
100,000 100,086
West Palm Beach, FL, GO Bonds, 6.60%,
03/01/99, Pre-refunded @ 102
50,000 51,442
Total Municipal Bonds (Cost $89,815,124) $ 89,815,124
Total Investments (100%) (Cost $167,095,124) $ 167,095,124
Summary of Ratings (unaudited):
AAA/Equivalent 98%, AA/Equivalent 2%
Average Portfolio Maturity 35.82 Days
The Florida TaxFree ShortTerm Fund
Statement of Investments
October 31, 1998 (Unaudited)
Variable Rate Demand Notes (15%) Principal
Amount Value
Dade County, FL IDA, Pollution Ctrl RB,
(Florida Power & Light), 3.70%, 06/01/21
200,000 200,000
Hillsborough County, FL IDA, Pollution Ctrl
RB, (Tampa Electric Co.), 3.70%, 05/15/18
100,000 100,000
Los Angeles County, CA IDA, IDB, (Kloenne
& Son's Investments), 4.20%, 12/01/05,
Dai-Ichi Kangyo Bank Ltd., LOC
400,000 400,000
Los Angeles County, CA IDA, IDB,
(Socransky Children's Fund), 4.20%,
12/01/05, Dai-Ichi Kangyo Bank Ltd., LOC
750,000 750,000
Los Angeles County, CA IDA, IDB,
(Southland Sheet & Metals Co. Project), 4.20%,
12/01/05, Dai-Ichi Kangyo Bank, Ltd., LOC
400,000 400,000
Los Angeles County, CA IDA, IDB,
(Komax Systems), 4.30%, 12/01/06, Dai-Ichi
Kangyo Bank, Ltd., LOC
1,300,000 1,300,000
Los Angeles County, CA IDA, IDB,
(Walter & Howard Lim), 4.30%, 12/01/06,
Dai-Ichi Kangyo Bank, Ltd., LOC
1,150,000 1,150,000
Palm Beach County, FL, Water & Sewer RB,
4.45%, 10/01/11, The Sanwa Bank, Limited, LOC
200,000 200,000
Total Variable Rate Demand Notes $ 4,500,000
Municipal Bonds (85%) Principal
Amount Value
Baker County, FL Hospital Auth, Hospital RB,
Series 1998, 4.30%, 09/01/03, ACA Insured
305,000 307,486
Bay Medical Center, FL, Hospital RB,
(Bay Medical Center Project), 4.70%,
10/01/02, AMBAC Insured
100,000 103,135
Bradenton, FL Util System, Water & Sewer RB,
Series A, 7.10%, 10/01/99, AMBAC Insured
100,000 103,290
Brevard County, FL School Board, Certificates
of Participation, 6.50%, 07/01/02, Pre-refunded @ 102
100,000 111,450
Broward County, FL, GO Bonds, Series C,
5.50%, 01/01/00
100,000 102,313
Broward County, FL, GO Bonds, Series B,
5.60%, 01/01/01
200,000 208,222
Broward County, FL, GO Bonds, Series B,
6.00%, 01/01/04
50,000 54,046
Broward County, FL, Certificates of Participation,
6.40%, 06/01/03, AMBAC Insured
85,000 88,029
Broward County, FL Educational Facilities
Auth, Higher Education RB, (Nova Southeastern
University Project), 5.40%, 04/01/02,
Connie Lee Insured
75,000 78,984
Broward County, FL, Water & Sewer RB,
Series A, Zero Coupon, 10/01/99,
AMBAC Insured
10,000 9,679
Canaveral, FL, Transportation RB,
5.40%, 06/01/02, FGIC Insured
100,000 105,554
Celebration Community Development
District, FL, Special Assessment RB,
Series B, 4.60%, 05/01/03, MBIA Insured
250,000 257,683
Clay County, FL HFA, Single Family
Mortgage RB, (Multi-County Program),
4.80%, 04/01/02, GNMA/FNMA Collateralized
130,000 132,456
Clay County, FL HFA, Single Family
Mortgage RB, (Multi-County Program),
4.50%, 04/01/03, GNMA/FNMA Collateralized
250,000 253,190
Municipal Bonds (Continued) Principal
Amount Value
Clay County, FL School Board, Certificates
of Participation, (Master Lease Program),
4.50%, 07/01/99, MBIA Insured
140,000 141,144
Clearwater, FL, Water & Sewer RB, Series B,
6.75%, 12/02/98, Pre-refunded @ 103.50
75,000 77,869
Collier County, FL, Special Assessment RB,
(Pine Ridge Industrial Park & Naples
Production Park Municipal Taxing & Benefit
Units), 5.00%, 11/01/99
300,000 304,515
Coral Springs, FL, GO Bonds, 4.25%, 04/01/01
50,000 50,688
Dade County, FL, GO Bonds, Series CC, 6.80%,
10/01/02, AMBAC Insured
200,000 222,420
Dade County, FL Aviation Auth, Transportation
RB, Series X, 5.25%, 10/01/01
100,000 104,164
Dade County, FL Educational Facilities Auth,
Higher Education RB, (St. Thomas University),
7.65%, 01/01/00, Pre-refunded @ 102
40,000 42,699
Dade County, FL, Guaranteed Entitlement
Spl Assmt Bonds, Series B, Zero Coupon,
02/01/00, MBIA Insured
250,000 239,130
Dade County, FL, Guaranteed Entitlement
Spl Assmt Bonds, Series B, Zero Coupon,
02/01/01, MBIA Insured
250,000 230,183
Dade County, FL School Board,
Certificates of Participation,
5.00%, 05/01/01, MBIA Insured
125,000 129,001
Dade County, FL School District,
GO Bonds, 5.00%, 06/01/00, MBIA Insured
50,000 51,146
Dade County, FL Solid Waste System,
Solid Waste RB, Series A, Zero Coupon,
10/01/99, Escrowed to Maturity
70,000 67,704
Dade County, FL, Special Assessment RB,
(Various Purpose Improv Projects),
Series A, 7.15%, 07/01/02, FSA Insured
25,000 26,508
Dade County, FL Health Facilities Auth,
Hospital RB, (Catholic Health & Rehabilitation
Inc.), 7.45%, 08/15/99, SunTrust Bank, LOC
50,000 51,462
Delray Beach, FL, GO Bonds, (Decade of
Excellence Program), 6.80%, 02/01/00,
Pre-refunded @ 102
50,000 53,023
Escambia County, FL Health Facilities Auth,
Hospital RB, (Azalea Trace, Inc. Project),
9.25%, 01/01/99, Pre-refunded @ 102
50,000 51,523
Escambia County, FL Health Facilities Auth,
Hospital RB, (Azalea Trace, Inc. Project),
5.25%, 01/01/03
300,000 305,706
Escambia County, FL Health Facilities Auth,
Hospital RB, (Baptist Hospital & Baptist
Manor Project), 4.20%, 10/01/02
165,000 165,172
Escambia County, FL Health Facilities Auth,
Hospital RB, (Baptist Hospital & Baptist
Manor Project), 4.40%, 10/01/03
210,000 211,657
Escambia County, FL HFA, Single Family
Mortgage RB, (Multi-County Program),
Series A, 4.70%, 04/01/01, GNMA Collateralized
100,000 101,596
Escambia County, FL HFA, Single Family
Mortgage RB, (Multi-County Program),
Series A, 4.50%, 04/01/03, GNMA Collateralized
250,000 253,190
Escambia County, FL, Public Improv RB,
Series A, 5.00%, 01/01/00
250,000 252,985
Escambia County, FL School Board,
Certificates of Participation, 6.25%,
02/01/02, Pre-refunded @ 100
45,000 48,555
Escambia County, FL School Board,
Municipal Lease Obligation, Certificates
of Participation, 5.80%, 02/01/00, Escrowed to Maturity
15,000 15,428
Escambia County, FL School Board,
Municipal Lease Obligation, Certificates
of Participation, 5.80%, 02/01/00, FSA Insured
35,000 35,976
Municipal Bonds (Continued) Principal
Amount Value
Florida Development Finance Corporation,
IRB, (FDFC Guaranty Program), 1997 Series B,
4.90%, 05/01/03, AMBAC Insured
40,000 41,671
Florida Development Finance Corporation,
IRB, (FDFC Guaranty Program), 1997 Series C,
4.90%, 05/01/03, AMBAC Insured
30,000 31,304
Florida HFA, General Mortgage RB,
Series A, 5.75%, 06/01/02, FHA Insured
45,000 47,115
Florida HFA, Housing RB, Single Family
Mortgage RB, 1995 Series A, 5.70%, 01/01/01,
GNMA Collateralized
70,000 72,298
Florida HFA, Housing RB, (Turtle Creek
Apartments Project), 1996 Series C, 4.75%,
05/01/00, AMBAC Insured
85,000 86,082
Florida HFA, Rfdg Homeowner Mortgage &
RB, Series 2, 5.20%, 01/01/02
255,000 261,793
Florida HFA, Housing RB, Series C, 4.90%,
08/01/01, FNMA Collateralized
150,000 154,542
Florida State, Pollution Ctrl RB, Series I,
5.30%, 07/01/98
25,000 25,291
Florida State, GO Bonds, (Pollution Ctrl),
Series Y, 6.50%, 07/01/02, Pre-refunded @ 101
150,000 165,861
Florida State, GO Bonds, (Pollution Ctrl),
Series Y, 6.60%, 07/01/02, Pre-refunded @ 101
135,000 149,735
Florida State, GO Bonds, (Jacksonville
Transportation, Sr. Lien), 6.40%, 07/01/02,
Pre-refunded @ 101
120,000 132,281
Florida State Department of Transportation,
GO Bonds, (Right-of-Way Acquisition and Bridge
Construction), Series 1997A, 6.40%, 07/01/02
200,000 218,358
Florida State Board of Education, GO Bonds,
Series 1991A, 6.40%, 01/01/04
100,000 103,815
Florida State Board of Education, GO Bonds,
Series A, Zero Coupon, 06/01/00, Pre-refunded @ 37.658
100,000 35,647
Florida State Board of Education, GO Bonds,
Series C, 5.40%, 06/01/03
60,000 64,003
Florida State Board of Education, GO Bonds,
Series A, 6.60%, 06/01/01, Pre-refunded @ 101
250,000 270,955
Florida State Board of Education, GO Bonds,
Series C, 6.50%, 06/01/02, Pre-refunded @ 102
400,000 441,492
Florida State Board of Education, GO Bonds,
Series C, 6.625%, 06/01/02, Pre-refunded @ 101
100,000 110,773
Florida State Board of Education, GO Bonds,
Series B, 6.00%, 06/01/02, Pre-refunded @ 101
250,000 271,288
Florida State Board of Education, GO Bonds,
Series A, 7.25%, 06/01/00, Pre-refunded @ 102
200,000 215,576
Florida State Board of Education, GO Bonds,
Series A, 7.25%, 06/01/00, Pre-refunded @ 102
185,000 199,408
Florida State Board of Education, GO Bonds,
Series C, 5.125%, 06/01/00
100,000 102,553
Florida State Board of Education, GO Bonds,
Series A, 5.25%, 06/01/00
65,000 66,789
Florida State Board of Education, GO Bonds,
Series A, 5.50%, 01/01/01
250,000 259,815
Florida State Board of Education, GO Bonds,
Series A, 5.00%, 06/01/04
200,000 210,940
Florida State Board of Education, GO Bonds,
Series C, 5.90%, 05/01/00, Escrowed to Maturity
25,000 25,294
Florida State Department of General Services,
Division of Facilities Management, Public Improv
RB, (FL Facilities Pool), 7.00%, 09/01/00,
Pre-refunded @ 102
100,000 108,229
Florida State Division of Bond Finance,
Department of General Services, Sales Tax RB,
(Dept of Natural Resources-Preservation 2000),
Series A, 6.75%, 07/01/01, Pre-refunded @ 102
100,000 109,896
Florida State Division of Bond Finance,
Department of General Services, Public
Improv RB, (Dept of Natural Resources-Preservation
2000), Series A, 5.80%, 07/01/01, MBIA Insured
115,000 121,048
Florida State Division of Bond Finance,
Department of General Services, Public Improv RB,
(Dept of Natural Resources-Preservation 2000),
Series A, 6.25%, 07/01/02, Pre-refunded @ 101
100,000 109,723
Florida State Division of Bond Finance,
Department of General Services, Public Improv RB,
(Dept of Natural Resources-Preservation 2000),
Series A, 6.25%, 07/01/02, Pre-refunded @ 101
175,000 192,015
Municipal Bonds (Continued) Principal
Amount Value
Florida State Division of Bond Finance, Department
of General Services, Public Improv RB, (Dept of
Environmental Protection-Preservation 2000),
Series A, 5.00%, 07/01/01, AMBAC Insured
150,000 154,868
Florida Municipal Power Agency, Electric Util RB,
(St. Lucie Project), 5.00%, 10/01/01, FGIC Insured
100,000 103,479
Florida State Turnpike Auth, Transportation RB,
7.50%, 07/01/99, Pre-refunded @ 102
40,000 41,994
Florida State Turnpike Auth, Transportation RB,
Series A, 6.25%, 07/01/01, Pre-refunded @ 100
45,000 48,066
Fort Myers, FL, Electric Util RB, Series B,
Zero Coupon, 10/01/99, Pre-refunded @ 26.012
40,000 10,104
Gainesville, FL Util System, Electric Util RB,
Series A, 5.90%, 10/01/00
50,000 52,104
Hernando County, FL School District, GO Bonds,
5.10%, 09/01/01, MBIA Insured
120,000 122,771
Hernando County, FL, Solid Waste RB, 7.10%,
10/01/00, Pre-refunded @ 102
100,000 108,690
Hillsborough County, FL Aviation Auth, Airport RB,
(Tampa International Arpt), Series B, 7.00%,
10/01/99, Pre-refunded @ 102
75,000 79,229
Hillsborough County, FL Aviation Auth, Airport RB,
(Tampa International Arpt), Series A, 6.30%,
10/01/99, Pre-refunded @ 102
35,000 36,753
Hillsborough County, FL Aviation Auth, Airport RB,
(Tampa International Arpt), Series A, 6.30%, 10/01/00,
FGIC Insured
40,000 41,730
Homestead, FL, Special Assessment RB, (Hurricane
Andrew), 5.25%, 03/01/03, Escrowed to Maturity
140,000 147,750
Indian Trace Community Development District, FL,
Water Management-Special Benefit Bonds, Series A,
5.10%, 05/01/01, MBIA Insured
250,000 258,535
Indian Trace Community Development District, FL,
Water Management-Special Benefit Bonds, Series A,
5.20%, 05/01/02, MBIA Insured
35,000 36,675
Indian Trail Water Control District, FL, Public
Improv RB, (Unit of Development No.1), Series 1990,
7.875%, 07/01/00
20,000 20,779
Jacksonville, FL, Capital Improv RB, (Gator Bowl
Project), 5.15%, 10/01/02, AMBAC Insured
100,000 105,056
Jacksonville, FL, Capital Improv RB, (Gator Bowl
Project), 6.00%, 10/01/04, Pre-refunded @ 101
165,000 184,929
Jacksonville, FL Electric Auth, Electric Util RB,
Issue 2, Series 7, 4.85%, 10/01/99
100,000 101,263
Jacksonville, FL Electric Auth, Electric Util RB,
(St. Johns River), Issue 2, Series 16, 5.00%, 10/01/03
250,000 263,108
Jacksonville, FL Health Facilities Auth, Hospital
RB, (St. Lukes Hospital Association), 6.30%, 11/15/99
50,000 51,378
Jacksonville, FL Health Facilities Auth, Hospital
RB, (National Benevolent Association-Cypress
Village Project), Series 1996A, 4.50%, 12/01/98
100,000 100,069
Jacksonville, FL Health Facilities Auth, Hospital
RB, (National Benevolent Association-Cypress Village
Project), Series 1996A, 4.75%, 12/01/99
115,000 115,928
Jacksonville, FL Health Facilities Auth, Hospital
RB, (National Benevolent Association-Cypress
Village Project), Series 1996A, 5.00%, 12/01/00
125,000 127,273
Jacksonville, FL Health Facilities Auth, Hospital
RB, (National Benevolent Association-Cypress Village
Project), Series 1996A, 5.20%, 12/01/01
130,000 133,608
Key West, FL Util Board, Electric Util RB, Capital
Appreciation Bonds, 9.75%, 04/01/00, Pre-refunded @ 103
100,000 111,581
Lakeland, FL, Hospital RB, (Lakeland Regional
Medical Center), 4.20%, 11/15/02, MBIA Insured
90,000 91,235
Lakeland, FL, Electric Util RB, 5.25%, 10/01/01
300,000 312,240
Municipal Bonds (Continued) Principal
Amount Value
Largo, FL, Hospital RB, (Sun Coast Health System)
5.75%, 03/01/01
285,000 289,888
Lee County, FL HFA, Single Family Mortgage RB,
(Multi-County Program), Series A, Subseries 2,
5.25%, 03/01/02, GNMA Collateralized
55,000 56,691
Lee County, FL HFA, Single Family Mortgage RB,
(Multi-County Program), Series 1996A, Subseries 3,
5.00%, 03/01/00, GNMA Collateralized
45,000 45,624
Lee County, FL HFA, Single Family Mortgage RB,
(Multi-County Program), Series 1996A, Subseries
3, 5.10%, 03/01/01, GNMA Collateralized
50,000 51,145
Lee County, FL School Board, Certificates of
Participation, Series A, 6.25%, 08/01/01,
Pre-refunded @ 102
80,000 87,064
Lee County, FL School Board, Certificates of
Participation, Series A, 4.85%, 08/01/03, FSA Insured
50,000 52,194
Lee County, FL School Board, Certificates of
Participation, 4.875%, 08/01/99, FSA Insured
100,000 101,056
Lee County, FL School Board, Certificates of
Participation, Series A, 4.30%, 08/01/01, FSA Insured
50,000 50,737
Lee County, FL Hospital Board of Directors,
Hospital RB, (Lee Memorial Health System Project),
1997 Series A, 5.00%, 04/01/03, MBIA Insured
150,000 156,449
Lee County, FL Hospital Board of Directors,
Hospital RB, (Lee Memorial Health System Project),
5.00%, 04/01/03, MBIA Insured
250,000 260,748
Lee County, FL IDA, Water & Sewer RB, (Bonita
Springs Utilities Project), 4.80%, 11/01/01,
MBIA Insured
70,000 72,109
Lee County, FL Solid Waste System, Solid Waste
RB, Series A, 6.90%, 10/01/03, MBIA Insured
100,000 110,102
Lee County, FL Solid Waste System, Solid Waste RB,
Series A, 4.50%, 10/01/01, MBIA Insured
95,000 96,793
Leon County, FL, Public Improv RB, Series B,
5.25%, 10/01/99, AMBAC Insured
395,000 401,439
Leon County, FL School District, GO Bonds,
6.00%, 07/01/02
250,000 263,453
Manatee County, FL HFA, Single Family Mortgage
RB, Subseries 1, 5.00%, 05/01/99, GNMA Collateralized
40,000 40,253
Manatee County, FL HFA, Single Family Mortgage
RB, Subseries 1, 5.375%, 05/01/02, GNMA Collateralized
40,000 41,430
Martin County, FL, GO Bonds, 6.40%,
02/01/00, Pre-refunded @ 102
75,000 79,170
Martin County, FL, GO Bonds, 6.50%,
02/01/00, Pre-refunded @ 102
50,000 52,841
Martin County, FL Health Facilities Auth,
Hospital RB, (Martin Memorial Hospital),
Series A, 7.00%, 11/15/00, MBIA Insured
175,000 186,323
Martin County, FL, Combined Spl Assmt
RB, 5.30%, 11/01/01
150,000 155,079
Miami Beach, FL Redevelopment Agcy,
Tax Increm RB, (City Center/Historic Conv
Village), 4.90%, 12/01/01
50,000 50,842
Miami Beach, FL Redevelopment Agcy,
Tax Increm RB, (Historic Conv Village),
Series B, 5.25%, 12/01/01
160,000 164,296
Miami-Dade County, FL, Professional
Sports Franchise Facilities Tax RB,
3.60%, 10/01/99, MBIA Insured
135,000 135,275
Miami-Dade County, FL, Professional Sports
Franchise Facilities Tax RB, 3.75%,
10/01/00, MBIA Insured
230,000 230,416
Miami-Dade County, FL, Special Obligation
RB, Series C, Zero Coupon, 10/01/03,
MBIA Insured
250,000 206,438
Miami-Dade County, FL Aviation Auth,
Transportation RB, Series A, 4.20%,
10/01/03, FGIC Insured
250,000 251,763
Municipal Bonds (Continued) Principal
Amount Value
Miami, FL Health Facilities Auth, Hospital RB,
(Mercy Hospital), 6.45%, 08/01/01, AMBAC Insured
100,000 106,911
Miami, FL, Special Rev Rfdg Bonds, 7.30%,
01/01/01, MBIA Insured
100,000 101,583
Miami, FL Sports & Exhibition Auth, Special
Obligation RB, 7.20%, 04/01/00, Pre-refunded @ 102
175,000 187,469
Miramar, FL, Wastewater Improv Assessment RB,
3.625%, 10/01/00, MBIA Insured
175,000 174,804
Naples, FL, Hospital RB, (Naples Community
Hospital, Inc. Project), 4.40%, 10/01/99, MBIA Insured
185,000 186,439
North Broward, FL Hospital District,
Hospital RB, 5.80%, 01/01/99, Escrowed to Maturity
175,000 175,649
North Miami, FL Health Facilities Auth, Hospital
RB, (Catholic Health Services Obligation Group),
4.80%, 08/15/01, SunTrust Bank, Central Florida, LOC
100,000 102,807
North Miami, FL Health Facilities Auth,
Hospital RB, (Catholic Health Services
Obligation Group), 5.10%, 08/15/04, SunTrust
Bank, Central Florida, LOC
190,000 200,598
Okaloosa County, FL, Water & Sewer RB, 7.15%,
01/01/99, Pre-refunded @ 102
50,000 51,348
Orange County, FL Health Facilities Auth,
Hospital RB, (Orlando Regional Healthcare),
Series A, 5.15%, 11/01/00, MBIA Insured
75,000 77,110
Orange County, FL HFA, Single Family Mortgage RB,
5.50%, 10/01/00, GNMA/FNMA Collateralized
55,000 56,487
Orange County, FL HFA, Single Family Mortgage
RB, Series A, 5.05%, 04/01/02, GNMA/FNMA Collateralized
80,000 82,142
Orange County, FL HFA, Single Family Mortgage
RB, Series A, 4.70%, 03/01/02, GNMA/FNMA Collateralized
260,000 263,994
Orange County, FL, Public Improv RB, (Tourist
Development Tax), Series B, 6.50%, 10/01/02,
Pre-refunded @ 102
220,000 246,514
Orlando, FL Utilities Commission, Electric
Util RB, Sub-series A, 6.50%, 10/01/01,
Pre-refunded @ 102
75,000 82,436
Orlando, FL Utilities Commission, Electric
Util RB, 5.20%, 10/01/00
40,000 41,160
Orlando & Orange County, FL Expressway Auth,
Transportation RB, Junior Lien, 6.00%, 7/01/00,
Pre-refunded @ 100
195,000 203,149
Osceola County, FL HFA, Multifamily Housing RB,
(Tierra Vista Apartments Project), Series A,
4.85%, 06/01/03, FSA Insured
70,000 71,877
Palm Beach County, FL, Criminal Justice
Facilities RB, 7.10%, 06/01/00, Pre-refunded @ 102
175,000 188,227
Palm Beach County, FL Health Facilities Auth,
Hospital RB, (Good Samaritan Health System),
5.40%, 10/01/00, Escrowed to Maturity
105,000 108,314
Palm Beach County, FL Health Facilities Auth,
Hospital RB, (The Waterford Project),
Series 1997, 4.35%, 10/01/99
200,000 200,548
Palm Beach County, FL Health Facilities Auth,
Hospital RB, (The Waterford Project),
Series 1997, 5.00%, 10/01/03
150,000 153,671
Palm Beach County, FL, Hospital RB, (Beverly
Enterprises, Inc. Project), 7.125%, 05/01/00,
Pre-refunded @ 102
500,000 536,530
Palm Beach County, FL School District,
Certificates of Participation, Series A, 5.50%,
08/01/01, AMBAC Insured
100,000 104,931
Panama City - Bay County, FL, Airport RB,
4.25%, 10/01/99, MBIA Insured
75,000 75,550
Pasco County, FL School District, GO Bonds,
6.10%, 07/01/03, MBIA Insured
150,000 158,337
Pensacola, FL Health Facilities Auth,
Hospital RB, (Daughters of Charity National
Health), 4.60%, 01/01/00
100,000 101,108
Municipal Bonds (Continued) Principal
Amount Value
Pinellas County, FL HFA, Single Family
Mortgage RB, Series 1997C, 4.60%, 09/01/02,
GNMA Collateralized
100,000 101,789
Pinellas County, FL, Capital Improv RB, 5.50%, 10/01/99
100,000 101,782
Pinellas County, FL Educational Facilities
Auth, Industrial Development RB, (College Harbor
Issue), Senior Lien, Series 1996A, 7.25%, 12/01/02
280,000 290,651
Pinellas County, FL Educational Facilities Auth,
Industrial Development RB, (College Harbor Issue),
Junior Lien, Series 1996B, 5.40%, 12/01/00
60,000 61,133
Pinellas County, FL Educational Facilities Auth,
Industrial Development RB, (College Harbor Issue),
Junior Lien, Series 1996B, 5.60%, 12/01/01
60,000 61,688
Pinellas County, FL Educational Facilities Auth,
Industrial Development RB, (College Harbor Issue),
Junior Lien, Series 1996B, 5.70%, 12/01/02
65,000 67,560
Pinellas County, FL Health Facilities Auth,
Hospital RB, (Morton Plant Health System Project),
4.70%, 11/15/00, MBIA Insured
100,000 101,987
Pinellas County, FL Health Facilities Auth,
Hospital RB, (Sunshine Village Nursing Home),
6.50%, 10/01/99
130,000 131,108
Pinellas County, FL, Transportation Improv RB,
5.25%, 08/01/00, FGIC Insured
150,000 154,211
Plantation, FL Health Facilities Auth,
Hospital RB, (Covenant Village of FL Project),
4.00%, 12/01/99
275,000 275,572
Plantation, FL, Water & Sewer RB, Zero Coupon,
03/01/03, MBIA Insured
245,000 194,457
Polk County, FL School Board, Certificates
of Participation, (School District Financing
Program), 6.375%, 01/01/01, Pre-refunded @ 102
100,000 107,685
Port Orange, FL, Water & Sewer RB, 6.40%,
10/01/02, AMBAC Insured
100,000 103,420
Port St. Lucie, FL, Water & Sewer RB,
Series 1996A, Zero Coupon, 09/01/01,
Escrowed to Maturity
150,000 135,074
Puerto Rico Electric Power Auth, Electric
Util RB, Series X, 4.75%, 07/01/02, MBIA Insured
75,000 77,624
Puerto Rico Industrial, Tourist, Educational,
Medical & Environmental Control Facilities
Financing Auth, Hospital RB, (Auxilio Mutuo Obligated
Group), 1997 Series A, 4.80%, 07/01/02, MBIA Insured
190,000 196,969
Reedy Creek, FL Improv Dist, Water & Sewer RB,
Series 1991-1, 6.50%, 10/01/01, Pre-refunded @ 101
80,000 87,209
St. Johns County, FL IDA, Hospital RB,
(Flagler Hospital Project), 5.50%, 08/01/00
230,000 236,633
St. Johns County, FL IDA, Hospital RB,
(Flagler Hospital Project), 5.60%, 08/01/01
185,000 193,220
St. Johns River Management District, FL,
Water & Sewer RB, (Land Acquisition), 5.50%,
07/01/99, Pre-refunded @ 100
50,000 50,854
St. Lucie County, FL School Board, Certificates
of Participation, 5.00%, 07/01/03, FSA Insured
55,000 57,677
St. Petersburg, FL Professional Sports Facility,
Sales Tax RB, Series 1995, 5.00%, 10/01/00, MBIA Insured
100,000 102,515
St. Petersburg, FL, Public Improv RB,
5.80%, 02/01/00, MBIA Insured
40,000 41,310
Sarasota County, FL Health Facilities Auth,
Hospital RB, (Sunnyside Properties Project),
Series 1995, 5.50%, 05/15/01
500,000 505,765
Sarasota County, FL Utility System, Electric
Util RB, Zero Coupon, 06/01/99, Pre-refunded @ 22.7283
400,000 89,040
Municipal Bonds (Continued) Principal
Amount Value
Seacoast, FL Util Auth, Water & Sewer System
RB, Series A, Zero Coupon, 03/01/99,
Pre-refunded @ 67.6395
30,000 20,096
Seacoast, FL Util Auth, Water & Sewer System RB,
Series A, Zero Coupon, 03/01/99,
Pre-refunded @ 27.8751
315,000 86,959
Seacoast, FL Util Auth, Water & Sewer RB,
Series A, 7.30%, 03/01/99, Pre-refunded @ 102
55,000 56,889
Seminole County, FL School Board, Certificates
of Participation, Series A, 6.125%, 07/01/04,
Pre-refunded @ 102
185,000 209,176
Seminole, FL Water Control District,
Spl Assmt Bonds, (Unit of Development No. 2),
Series 1996, 5.95%, 08/01/01
225,000 230,238
South Broward Hospital District, FL, Hospital
RB, 4.65%, 05/01/00, AMBAC Insured
50,000 50,740
South Broward Hospital District, FL,
Hospital RB, 5.05%, 05/01/04, AMBAC Insured
100,000 105,241
Sunrise Lakes, FL, GO Bonds, (Phase 4 Recreation
Dist), 4.125%, 08/01/04, AMBAC Insured
100,000 100,862
Tallahassee, FL, Electric Util RB, Series A,
4.00%, 10/01/04, FSA Insured
100,000 100,000
Tallahassee, FL Health Facilities, Hospital RB,
(Tallahassee Memorial Regional Medical Center),
Series B, 5.30%, 12/01/00, MBIA Insured
75,000 77,416
Tallahassee, FL Municipal Airport, Airport
Rfdg RB, 4.60%, 10/01/01, AMBAC Insured
165,000 168,932
Tampa, FL Sports Auth, IDB, (Tampa Bay Arena
Project), 4.30%, 04/01/99, MBIA Insured
80,000 80,290
University of South Florida, University Rev
Housing Facilities RB, Series A, 7.00%,
07/01/00, MBIA Insured
165,000 174,055
University of South Florida, University Rev
Housing Facilities RB, Series A, 7.00%,
07/01/02, MBIA Insured
185,000 205,554
Virgin Islands Port Auth, Transportation RB,
(Rohlsen Terminal), Series 1998A, 4.35%, 09/01/03
455,000 454,386
Volusia County, FL, Special Assessment RB,
(Bethune Beach Wastewater Project), 6.60%, 07/01/01
540,000 556,124
Winter Springs, FL, Water & Sewer RB, 7.15%,
04/01/00, Pre-refunded @ 102
100,000 107,036
Total Municipal Bonds (Cost $26,170,805) $ 26,555,984
Total Investments (100%) (Cost $30,670,805) $ 31,055,984
Summary of Ratings (unaudited): AAA/Equivalent 55%, AA/Equivalent 14%,
A/Equivalent 19%, BBB/Equivalent 10%, Other 2%
Average Portfolio Maturity 2.32 Years
Statement of Assets and Liabilities
For the Six Months Ended October 31, 1998 (Unaudited)
Money Fund ShortTerm Fund
ASSETS
Investments in securities, at value
(cost $167,095,124 and $30,670,805
respectively) $ 167,095,124 $ 31,055,984
Cash 1,193,884 119,617
Receivables:
Interest 1,221,532 381,792
Fund shares sold 406,163 --
Organization costs, net of accumulated
amortization 626 626
Total assets 169,917,329 31,558,019
LIABILITIES
Payable for investment securities purchased 236,438 2,570,528
Dividend payable 426,776 92,723
Funds advanced by manager 56,621 8,529
Total liabilities 719,835 2,671,780
NET ASSETS
Net assets $ 169,197,668 $ 28,886,239
Number of shares outstanding $ 169,197,494 $ 2,852,767
Net asset value, offering price and redemption
price per share $ 1.00 $ 10.13
Statements Of Operations
For the Six Months Ended October 30, 1998 (Unaudited)
Money Fund ShortTerm Fund
INVESTMENT INCOME
Income:
Interest $ 2,796,044 $ 550,860
Expenses:
Investment advisory fee (Note 2) 391,307 73,138
Custodian fees (Note 3) 18,307 6,292
12b-1 fees (Note 2) 48,394 9,432
Transfer agency fees and expenses (Note 2) 49,505 6,154
Printing costs 7,005 1,236
Professional fees 9,899 8,265
Insurance 2,950 521
Registration and filing fees 20,745 10,497
Trustees' fees and expenses 4,378 773
Amortization of organization costs 4,260 4,260
Other expenses 11,653 2,057
Total expenses 568,403 122,625
Expense reimbursements and fee
reductions (Note 2) (263,189) (73,941)
Custodian fees paid indirectly (Note 3) (13,834) (3,289)
Net expenses 291,380 45,395
Net investment income $ 2,504,664 $ 505,465
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments $ (3,584) $ 3,884
Unrealized appreciation (depreciation) on
investments -- 184,043
Net realized and unrealized gain (loss) on
investments (3,584) 187,927
Increase in net assets from operations $ 2,501,080 $ 693,392
Statement of Changes in Net Assets
October 31, 1998 (Unaudited)
MONEY FUND SHORTTERM FUND
Six Months Six Months
Ended Year Ended Year
10/31/98 Ended 10/31/98 Ended
(Unaudited) 4/30/98 (Unaudited) 4/30/98
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income
$ 2,504,664 $ 5,314,283 $ 505,465 $ 1,158,959
Net realized gain (loss) on
Investments
(3,584) 4,030 3,884 49,460
Unrealized appreciation (depreciation) of
Investments
-- -- 184,043 244,669
Increase in net assets from operations
2,501,080 5,318,313 693,392 1,453,088
Dividends to shareholders from:
Net investment income(2,505,459) (5,314,077) (505,465) (1,158,959)
Realized gains -- -- -- --
Fund share transactions (Note 4)
19,840,662 12,904,402 5,745,620 (6,194,004)
Net increase in net assets
19,836,283 12,908,638 5,933,547 (5,899,875)
Net Assets:
Beginning of period 149,361,385 136,452,747 22,952,692 28,252,567
End of period $169,197,668 $149,361,385 $28,886,239 $22,952,692
Notes to Financial Statements - October 31, 1998 (Unaudited)
1. Summary of Accounting Policies
The Florida TaxFree Money Market Fund (the "Money Fund") and The Florida
TaxFree ShortTerm Fund (the "ShortTerm Fund") are series of The Hough Group
of Funds (the "Trust") which was organized as a Massachusetts Business Trust
on July 22, 1993. The Trust is registered as an open-end non-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, 1998 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, William R. Hough & Co. (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, 1998, management fees totaled
$391,307 and $73,138 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, 1998, fees under this agreement
amounted to $39,988 and $3,310 for the Money Fund and the ShortTerm Fund,
respectively. However, these and all other expenses of the Funds were paid
by WRH to the extent that they exceeded .40% of each Fund's average daily
net assets, and will continue to be paid at that level until notice is
otherwise provided 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. 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, and are included in expense reimbursements and fee reductions.
During the six-month period ended October 31, 1998, the Money Fund and the
ShortTerm Fund paid $165 and $960, 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, 1998, custodian fees were reduced
by earnings credits of $13,384 and $3,289 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
$169,197,494 and $28,534,012, respectively. Transactions in Fund shares for
the six-month period ended October 31, 1998 and the year ended April 30, 1998
were as follows:
MONEY FUND*
Six Months Year
Ended Ended
10/31/98 4/30/98
Sold 153,643,562 364,568.053
Issued on reinvested dividends
2,428,967 5,018,708
Redeemed (136,231,867) (356,682,359)
Net increase 19,840,662 12,904,402
SHORTTERM FUND
SHARES AMOUNT
Six Months Year Six Months Year
Ended Ended Ended Ended
10/31/98 4/30/98 10/31/98 4/30/98
Sold 1,269,970 2,728,078 12,818,738 27,392,402
Issued on reinvested dividends
44,375 111,735 447,155 1,122,079
Redeemed 745,911 (3,453,934) (7,520,272) (34,708,485)
Net increase
(568,435) (614,121) $ 5,745,620 $ (6,194,004)
* 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, 1998
were $7,870,436 and $1,999,953, respectively. At October 31, 1998, the cost
of securities for federal income tax purposes was the same as that for
financial reporting purposes. Net unrealized appreciation, which amounted to
$385,179 for the ShortTerm Fund, consisted of aggregate gross unrealized
appreciation and (depreciation) of $388,677 and ($3,498), respectively.
As of October 31, 1998, the accumulated net realized loss was $32,952 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
Per share operating performance
(for a share outstanding throughout the period)
Six Months Year Year Year Year Period
Ended Ended Ended Ended Ended from
10/31/98 4/30/98 4/30/97 4/30/96 4/30/95 11/22/93*
(Unaudited) to 4/30/94
Net asset value, beginning of period........
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net Investment Income.....................
0.016 0.034 0.034 0.036 0.035 0.011
Less distributions:
Dividends from net investment Income........
(0.016) (0.034) (0.034) (0.036) (0.035) (0.011)
Net asset value, end of period...............
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total return dagger .....................................
3.34% 3.50% 3.42% 3.69% 3.59% 2.49%
Ratios/Supplemental Data
Net assets at end of period (000's)..........
$169,197 $149,361 $136,453 $113,943 $105,647 $23,516
Ratios to Average Daily Net Assets (Dragger)
Expenses......................................
.37% .26% .20% .20% .07% .00%
Expenses (Before reimbursement)(Double Dragger)....
.73% .73% .78% .80% 1.04% 1.96%
Net Investment Income....................
3.20% 3.43% 3.36% 3.62% 3.63% 2.55%
* Commencement of operations.
Dagger: Figures are annualized for periods less than a year.
Double Dragger: Effective for the year ended April 30, 1996 and thereafter,
expense ratios (before reimbursement) no longer reflect reduction from
custodian fee offset arrangements.
6. Financial Highlights (continued)
ShortTerm Fund
Six Months Year Year Year Year Period
Ended Ended Ended Ended Ended from
10/31/98 4/30/98 4/30/97 4/30/96 4/30/95 11/22/93*
(Unaudited) to 4/30/94
Per share operating performance
(for a share outstanding throughout the period)
Net asset value, beginning of period.........
$10.05 $9.95 $9.94 $9.89 $9.86 $10.00
Income from investment operations:
Net Investment income.....................
.21 .42 .43 .42 .42 .16
Net realized and unrealized gain (loss)
on investments...........................
.08 .10 .01 .05 .03 (.14)
Total from investment operations........
0.29 0.52 0.44 0.47 0.45 0.02
Less distributions:
Dividends from net investment income......................................
(0.21) (0.42) (0.43) (0.42) (0.42) (0.16)
Net asset value, end of period................
$10.13 $10.05 $9.95 $9.94 $9.89 $9.86
Total return dagger .....................................
4.99% 5.23% 4.59% 4.85% 4.66% 0.49%
Ratios/Supplemental Data
Net assets at end of period (000's)..........
$28,886 $22,953 $28,853 $12,344 $11,113 $10,757
Ratios to Average Daily Net Assets (Dagger)
Expenses......................................
.37% .26% .20% .20% .07% .05%
Expenses (Before reimbursement) (Double Dagger)...
.99% .93% 1.18% 1.42% 1.50% 2.77%
Net Investment Income.....................
4.10% 4.20% 4.27% 4.25% 4.25% 3.79%
Portfolio turnover rate...........................
9.22% 40.2% 40.9% 83.4% 35.9% 10.9%
* Commencement of operations.
Dagger: Figures are annualized for periods less than a year.
Double Dagger: Effective for the year ended April 30, 1996 and thereafter,
expense ratios (before reimbursement) no longer reflect reduction from
custodian fee offset arrangements.
