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, 1999
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 4
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
Change of Auditors 25
President's Message
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
As of October 31, 1999 total net assets of the Fund were $154.2 million.
This compares with $160.4 million on April 30, 1999 and $169.2 million on
October 31, 1998.
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 five-year period ending October 31, 1999, The
Florida TaxFree Money Market Fund was ranked by IBC in the top 2% out of a
total of approximately 320 tax-free money market funds tracked by that firm.
Had certain fees and expenses not been reimbursed by the Adviser, the yield
and ranking would have been lower. Past performance, however, is no
guarantee of future results.
The 7 day average yield of the Fund was 3.15% as of October 31, 1999. For
investors in the 36% federal tax bracket who have Florida intangible assets
of $200,000 or more, the tax equivalent yield was 5.12%.
The Florida TaxFree ShortTerm Fund
As of October 31, 1999, total net assets for the Fund were $32.8 million,
compared with assets of $29.3 million on April 30, 1999 and $28.9 million on
October 31, 1998. The portfolio had a dollar-weighted average maturity of
2.46 years and a 30 day SEC yield of 4.04% on October 31, 1999. This yield
equates to a tax equivalent yield of 6.51% for a Floridian in the 36% federal
tax bracket with Florida intangible assets of $200,000 or more.
The Florida TaxFree ShortTerm Fund is a variable net asset value mutual fund,
and therefore the value of shares fluctuates with the movements of the short-
term municipal bond market. The net asset value per share was $9.94 on October
31, 1999, compared with $10.11 on April 30, 1999, and $10.13 on October 31,
1998, contributing to a 4.56% cumulative total return on the Fund for the
year ended October 31, 1999. The decrease in net asset value per share is
due primarily to the Federal Reserve Board's interest rate increase over the
past calendar year. 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 20 cents per share for
the six month period ending October 31, 1999 and 40 cents per share for the
year then ending.
The cumulative total return on the Fund since its inception November 22, 1993
through October 31, 1999 was 27.11%. This represents a return of 4.12% 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
$12,710.60 on October 31, 1999 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
Statement of Investments October 31, 1999
THE FLORIDA TAXFREE MONEY MARKET FUND
PRINCIPAL VALUE
VARIABLE RATE DEMAND NOTES AMOUNT
Florida (27%)
Broward County, FL Education, Research, and Training Auth, IDB, (The
International Game Fish Association Project), Series 1997, 4.05%, 08/01/04,
NationsBank, N.A., LOC $1,900,000 $1,900,000
Broward County, FL, IDB, (Pavermodule, Inc. Project), 4.05%, 09/01/04,
NationsBank, N.A., LOC 460,000 460,000
Broward County, FL, IDB, (W.R. Bonsal Company Project), 4.15%, 09/01/08,
NationsBank, N.A., LOC 1,200,000 1,200,000
Collier County, FL HFA, Housing RB, (River Reach), 4.00%, 12/01/15, Morgan
Guaranty Trust Co., LOC 2,100,000 2,100,000
Dade County, FL IDA, Pollution Ctrl RB, (Florida Power & Light), 3.00%,
06/01/21 3,450,000 3,450,000
Dade County, FL Health Facilities Auth, Hospital RB, (Miami Children's
Hospital), 4.30%, 09/01/20,
Barnett Bank of South FL, LOC 2,900,000 2,900,000
Dade County, FL IDA, IDB, (Dolphins Stadium), Series D, 3.95%, 01/01/16,
Societe Generale, LOC 2,100,000 2,100,000
Dade County, FL IDA, IDB, (Arlington Sales), 4.40%, 06/01/08, Credit
Commercial de France, LOC 1,100,000 1,100,000
Florida Gulf Coast University, Certificates of Participation, 3.40%,
08/01/27, First Union National Bank, LOC 1,400,000 1,400,000
Florida HFA, Housing RB, (Clear Lake), Series D, 4.00%, 12/01/09,
Continental Casualty, GTY 1,000,000 1,000,000
Florida HFA, Housing RB, (Lakes of Northdale Project), Series D, 4.10%,
06/01/07, SouthTrust Bank of AL, LOC
1,675,000 1,675,000
Florida HFA, Housing RB, (Springs Colony Project), 1985 Series FF, 4.00%,
09/15/26, FNMA Collateralized 2,000,000 2,000,000
Florida Housing Finance Corp, Housing RB, (South Pointe Project), Series J,
3.54%, 02/15/28, FNMA Collateralized 1,000,000 1,000,000
Florida Local Government Finance Auth, IDB, (Lake Wales Medical Centers
Project), Series A, 3.40%, 03/01/15, First Union National Bank, LOC
783,000 783,000
Hillsborough County, FL IDA, Pollution Control RB, (Reynolds Metals Company),
3.45%, 12/01/15, Dresdner Bank, A.G., LOC 1,000,000 1,000,000
Hillsborough County, FL IDA, Pollution Ctrl RB, (Tampa Electric Co.),
Series 1990, 3.60%, 9/01/25 3,000,000 3,000,000
Hillsborough County, FL IDA, Industrial Development RB, (Berry Packaging Inc.),
4.15%, 07/01/17, NationsBank, N.A., LOC 1,140,000 1,140,000
Indian Trace, FL Community Development District, Water & Sewer RB,
(Basin I Water Management), 3.85%, 05/01/09, MBIA Insured, SBPA: Swiss Bank
1,145,000 1,145,000
Jacksonville, FL, Industrial Development RB, (Coastal Industries),
3.50%, 08/01/08, Credit Commercial de France, LOC
425,000 425,000
Lake County, FL IDA, IDB, (Novelty Crystal Corp.), 4.40%, 03/01/09, Credit
Commercial de France, LOC 1,350,000 1,350,000
Manatee County, FL, Pollution Ctrl RB, (Florida Power & Light), 3.55%,
09/01/24 2,100,000 2,100,000
Putnam County, FL Development Auth, Pollution Ctrl RB, (Florida Power &
Light), 3.25%, 09/01/24 500,000 500,000
St. Johns County, FL HFA, Housing RB, (Anastasia Project), 3.50%, 11/01/14,
Barnett Bank, N.A., LOC 1,000,000 1,000,000
St. Johns County, FL HFA, Housing RB, (Remington Project), 3.45%, 02/15/28,
FNMA Collateralized 1,250,000 1,250,000
St. Petersburg, FL, Public Improv RB, (Florida International Museum Project),
Series 1997A, 4.15%, 10/01/17, SunTrust Bank, Tampa Bay, LOC
4,275,000 4,275,000
Sumter County, FL IDA, IDB, (Great Southern Wood, FL, Inc.), 4.60%,
04/01/05, SouthTrust Bank, LOC 400,000 400,000
Tamarac, FL, IDB, (Tampa Bay Business Center, Inc. Project), 4.15%,
08/01/15, NationsBank of FL, NA, LOC 315,000 315,000
Volusia County, FL IDA, IDB, (RS Displays Inc. Project), 3.60%, 06/01/09,
Credit Commercial de France, LOC 675,000 675,000
Other (Non-Florida) (3%)
Floyd County, GA Development Auth, Pollution Ctrl RB, (GA Power Co - Plant
Hammond Project), First Series 1996, 3.30%, 09/01/26
900,000 900,000
Monroe County, GA Development Auth, Pollution Control RB, (GA Power), 1st
Series, 3.40%, 04/01/32 2,000,000 2,000,000
Washington State Housing Finance Commission, Housing RB, (Canyon Lakes II
Project), 3.75%, 10/01/19, U.S. Bank of Washington, N.A., LOC
2,200,000 2,200,000
Total Variable Rate Demand Notes (Cost $46,743,000) $46,743,000
MUNICIPAL BONDS
Florida (63%)
Brevard County, FL School District, Tax Anticipation Notes, 4.00%, 6/30/00
$1,000,000 $1,004,163
Broward County, FL School District, Revenue Anticipation Notes, Series B,
3.50%, 04/13/00 4,450,000 4,458,706
Broward County, FL, Sales Tax RB, Commercial Paper, 3.50%, 11/04/99, Credit
Local de France, Line of Credit 1,350,000 1,350,000
Charlotte County, FL School District, Tax Anticipation Notes, Series 1999,
4.00%, 06/30/00 5,000,000 5,011,236
Dade County, FL, Guaranteed Entitlement Spl Assmt Bonds, Series B, Zero
Coupon, 02/01/00, MBIA Insured 125,000 123,821
District of Columbia, GO Bonds, Series A, 7.10%, 12/01/99, MBIA Insured
170,000 170,493
Escambia County, FL Health Facilities Auth, Hospital RB, (Charity Obligated
Group), Series C, 3.10%, 11/01/99 330,000 330,000
Florida HFA, Housing RB, (Single Family Mortgage), Series B, 5.35%, 01/01/00
220,000 220,641
Florida HFA, Housing RB, (Iona Lakes Project), 1989 Series D, 3.25%,
04/01/00, Continental Casualty, Gty, Mandatory Tender @ 100
1,500,000 1,500,000
Florida Housing Finance Corporation, Housing RB, Homeowner Mortgage, Series 5,
3.15%, 03/31/00, Bayerische Landesbank Girozentrale, GIC
1,500,000 1,500,000
Florida Ports Financing Commission, Transportation RB, (State Transportation
Trust Fund - Intermodal Program), Series 1999, 4.00%, 04/01/00, FGIC Insured
5,245,000 5,251,847
Florida, State of, GO Bonds, Department of Transportation - Right of Way,
5.75%, 07/01/00 100,000 101,293
Florida State Board of Education, GO Bonds, 7.00%, 06/01/00, Pre-refunded@102
1,000,000 1,038,085
Florida State Board of Education, GO Bonds, 7.00%, 06/01/00, Pre-refunded@102
600,000 623,844
Florida State Board of Education, GO Bonds, 7.00%, 06/01/00, Pre-refunded@102
125,000 129,738
Florida State Board of Education, GO Bonds, Series A, Zero Coupon, 06/01/00,
Pre-refunded @ 43.715 250,000 163,340
Florida State Board of Education, GO Bonds, Series A, Zero Coupon, 06/01/00,
Pre-refunded @ 37.6576 1,680,000 619,177
Florida State Board of Education, GO Bonds, Series A, Zero Coupon, 06/01/00,
Pre-refunded @ 32.4381 1,250,000 396,836
Florida State Board of Education, GO Bonds, Series A, 6.10%, 06/01/00
85,000 85,522
Florida State Board of Education, GO Bonds, Series C, 5.40%, 06/01/00
200,000 201,756
Florida State Board of Education, GO Bonds, Series A, 7.25%, 06/01/00,
Pre-refunded @ 102 2,140,000 2,226,812
Florida State Board of Education, GO Bonds, 7.00%, 06/01/00, Pre-refunded@102
1,000,000 1,038,085
Florida State Board of Education, GO Bonds, Series A, (CR 55), 3.75%,
03/01/00, Mandatory Tender @ 100, Citibank, N.A. Liquidity Facility
5,120,000 5,120,000
Florida State Board of Education, GO Bonds, Series A, 5.00%, 01/01/00
100,000 100,286
Florida State Division of Bond Finance, Department of General Services,
Public Improv RB, (Dept of Natural Resources-Preservation 2000), Series A,
5.00%, 07/01/00, AMBAC Insured 150,000 151,356
Florida Local Government Commission, Commercial Paper, (Florida Association
of Counties Pooled Program), 3.35%, 11/09/99, First Union National Bank, LOC
5,810,000 5,810,000
Florida Local Government Commission, Commercial Paper, (Florida Pooled
Program), Series B, 3.55%, 01/10/00, First Union National Bank, LOC
2,000,000 2,000,000
Florida Municipal Power Agency, Commercial Paper, Pooled Loan Project,
3.45%, 11/08/99, First Union National Bank of NC, LOC
1,905,000 1,905,000
Fort Meade, FL, Electric Util RB, Series 1999, 3.40%, 01/01/00, MBIA Insured
70,000 70,000
Hillsborough County, FL School Board, Certificates of Participation, 3.65%,
7/01/00, MBIA Insured 500,000 500,000
Hillsborough County, FL, Public Improv RB, (Museum of Science & Industry),
6.45%, 01/01/00, Pre-refunded @ 102 1,255,000 1,286,184
Hillsborough County, FL, Water & Sewer RB, 9.00%, 12/01/99, Pre-refunded@100
210,000 210,965
Homestead, FL, Special Assessment RB, (Hurricane Andrew), 4.90%, 09/01/00,
Escrowed to Maturity 1,000,000 1,009,705
Indian River County, FL, Water & Sewer RB, 5.90%, 05/01/00, Escrowed to
Maturity 100,000 101,141
Indian Trace, FL Community Development Dist, Special Assessment RB, (Water
Management - Special Benefit), Series A, 5.00%, 05/01/00, MBIA Insured,
Swiss Bank, SBPA 100,000 100,653
Inland Protection Financing Corp, FL, Public Improv RB, 5.00%, 07/01/00,
FSA Insured 1,000,000 1,008,157
Jacksonville, FL Elec Auth, Commercial Paper, Series C-1, 3.60%, 11/05/99,
Morgan Guaranty, Liquidity Provider 1,000,000 1,000,000
Jacksonville, FL, GO Bonds, (Commercial Paper Program), 3.35%, 01/20/00, M
Morgan Guaranty, Bayerische Landesbank Girozentrale, SunBank, LOC
9,800,000 9,800,000
Jacksonville, FL, Commercial Paper, (Florida Power & Light), Series 1992,
3.35%, 11/10/99 2,800,000 2,800,000
Jacksonville, FL, Commercial Paper, (Florida Power & Light), Series 1992,
3.75%, 01/14/00 2,500,000 2,500,000
Lee County, FL Hospital Board of Directors, Hospital RB, (Lee Memorial
Hospital Project), Commercial Paper, 1995 Series A, 3.60%, 11/05/99,
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 D, 3.65%, 12/06/99,
SunTrust Bank, Central FL, LOC 1,800,000 1,800,000
Lee County, FL Hospital Board of Directors, Hospital RB, (Lee Memorial
Hospital Project), Commercial Paper, Series C, 3.85%, 01/11/00,
SunTrust Bank, Central FL, LOC 3,000,000 3,000,000
Lee County, FL IDA, Industrial Development RB, (Bonita Springs Utility
Project), 4.55%, 11/01/99, MBIA Insured 200,000 200,000
Marion County, FL, Public Improv RB, 6.00%, 12/01/99, Pre-refunded @ 100
150,000 150,294
Marion County, FL, Public Improv RB, 6.00%, 12/01/99, Pre-refunded @ 100
500,000 501,134
Mexico Beach, FL Sewer System, Bond Anticipation Notes, Series 1999, 3.90%,
02/15/00 2,183,100 2,184,906
North Miami Beach, FL, GO Bonds, 5.30%, 02/01/00, FGIC Insured
50,000 50,258
Okeechobee, FL, Water & Sewer RB, 6.65%, 01/01/00, Pre-refunded @ 102
165,000 169,066
Orange County, FL HFA, Housing RB, Single Family Mortgage, Series A, 4.40%,
03/01/00, GNMA/FNMA Collateralized 245,000 245,396
Orange County, FL, Sales Tax RB, 6.125%, 01/01/00, Pre-refunded @ 102
1,500,000 1,536,229
Orange County, FL, Sales Tax RB, 4.30%, 01/01/00, FGIC Insured
95,000 95,185
Orlando & Orange County, FL Expressway Auth, Transportation RB, (Junior Lien),
6.50%, 07/01/00, Pre-refunded @ 102 110,000 114,025
Osceola County, FL School Board, Certificates of Participation, Series A,
3.25%, 06/01/00, AMBAC Insured 575,000 574,832
Palm Beach County, FL, GO Bonds, 5.30%, 12/01/99
75,000 75,099
Palm Beach County, FL, Criminal Justice Facilities RB, 6.00%, 06/01/00,
Pre-refunded @ 100 250,000 252,830
Palm Beach, FL HFA, Housing RB, (Lake Crystal Apts Project), 3.30%, 12/01/99,
FHLMC Collateralized 105,000 105,000
Palm Beach County, FL Health Facilities Auth, Hospital RB, (Pooled Hospital
Loan Project), Commercial Paper, 3.60%, 12/02/99, MBIA Insured, Credit Suisse,
SBPA 4,000,000 4,000,000
Port of Palm Beach District, FL, Transportation RB, Series A, 3.80%, 09/01/00,
MBIA Insured 195,000 195,000
Putnam County, FL Development Auth, Pollution Ctrl RB, (Seminole Electric
Cooperative, Inc.), Series D, 3.125%, 12/15/99, 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, 3.60%, 03/15/00, National Rural Utilities
Cooperative Finance Corporation, GTY, Mandatory Tender @ 100
1,500,000 1,500,000
Randolph County, WV County Community Health System, Hospital RB, (Davis
Health System), Series A, 4.00%, 11/01/99, FSA Insured
345,000 345,000
St. Lucie County, FL School District, Certificates of Participation, Series A,
7.25%, 07/01/00, Pre-refunded @ 102 350,000 365,205
St. Lucie County, FL, Commercial Paper, (Florida Power & Light), 3.25%,
11/02/99 2,500,000 2,500,000
St. Lucie County, FL, Commercial Paper, (Florida Power & Light), 3.30%,
01/18/00 3,250,000 3,250,000
Seatac, WA, GO Bonds, 4.220%, 12/01/99, FSA Insured
140,000 140,051
Seekonk, MA, GO Bonds, 6.50%, 11/15/99, MBIA Insured
625,000 625,697
Seminole County, FL School District, Tax Anticipation Notes, 4.00%, 07/28/00
1,000,000 1,004,638
Sunshine State Governmental Financing Comm, Commercial Paper, 3.55%,
11/03/99, FGIC Insured, SBPA: Bank of Nova Scotia
2,260,000 2,260,000
Tamarac, FL, Sales Tax RB, 3.55%, 04/01/00, FGIC Insured
150,000 150,000
Tampa, FL, Hospital RB, (Allegany Health - St. Joseph's), 7.125%, 12/01/99,
Pre-refunded @ 102 500,000 511,559
Tampa, FL, Hospital RB, (Allegany Health - St. Joseph's), 7.375%, 12/01/99,
Pre-refunded @ 102 75,000 76,725
Village Center Community Development District, FL, Public Improv RB, Series A,
3.90%, 11/01/99, MBIA Insured 500,000 500,000
Volusia County, FL School Board, Certificates of Participation, (Master Lease
Program), 3.65%, 08/01/00, FSA Insured 900,000 900,000
Walton County, FL, Certificates of Participation, 3.50%, 07/01/00, FSA Insured
25,000 25,000
Wellington, FL, Public Service Tax RB, Series 1999, 3.60%, 09/01/00, AMBAC
Insured 300,000 299,998
Other (Non-Florida) (7%)
Austin, TX, Water & Sewer RB, 11.125%, 11/15/99, Pre-refunded @ 100
575,000 576,628
Austin, TX, Water & Sewer RB, 4.00%, 11/15/99, FSA Insured
250,000 250,031
Berlin Township, NJ, GO Bonds, 5.65%, 12/15/99, MBIA Insured
100,000 100,225
Berne & Union, OH Local School District, GO Bonds, Series A, 6.05%, 12/01/99,
AMBAC Insured 175,000 175,323
Bordentown Township, NJ, GO Bonds, 4.15%, 11/15/99, FGIC Insured
160,000 160,023
Chester County, PA, GO Bonds, 4.25%, 11/01/99
200,000 200,000
Cook County, IL School District No. 015, GO Bonds, (Palatine), 4.30%,
12/01/99, FSA Insured 100,000 100,044
Cook County, IL School District No. 071, GO Bonds, 7.50%, 12/01/99, MBIA
Insured 125,000 125,377
Cook County, IL School District No. 91, GO Bonds, 5.50%, 12/01/99, FSA
Insured 100,000 100,159
Cook County, IL School District No. 106, GO Bonds, 6.375%, 12/01/99, FGIC
Insured 770,000 771,770
Cook County, IL School District No. 145, GO Bonds, 9.00%, 12/01/99, FSA
Insured 200,000 200,912
Cook County, IL School District No. 149, GO Bonds, 6.25%, 12/01/99, MBIA
Insured 225,000 225,539
Greater Detroit, MI Resource Recovery Auth, Solid Waste RB, Series A, 5.00%,
12/13/99, AMBAC Insured 250,000 250,354
Harris County, TX, GO Bonds, 7.20%, 11/01/99, Pre-refunded @ 100
150,000 150,013
Hartford, CT, GO Bonds, 6.00%, 11/15/99, FGIC Insured
225,000 225,188
Houston, TX Water Conveyance System, Certificates of Participation, 5.50%,
12/15/99, AMBAC Insured 100,000 100,254
Indianapolis, IN, Solid Waste RB, (Ogden Martin System Inc. Project), 6.00%,
12/01/99, AMBAC Insured 150,000 150,272
Lower Pottsgrove Township, PA, Water & Sewer RB, 6.20%, 11/01/99,
Pre-refunded@100 50,000 50,000
Madison, Macoupin, Etc., Counties, IL Community College District No. 536,
Higher Education RB, (Lewis & Clark Community College), 4.15%, 11/01/99,
FGIC Insured 100,000 100,000
Manhattan, KS, Tax Increment RB, (Cent Business District), Series A, 4.50%,
12/01/99, Asset Guaranty, Insured 600,000 600,478
New York State HFA, Housing RB, (State University Construction), Series A,
7.40%, 11/01/99, Escrowed to Maturity 125,000 125,000
New York State Medical Care Facilities Finance Agency, (Hospital RB, (Our
Lady of Victory Hospital Project), Series A, 7.00%, 11/01/99, AMBAC Insured
500,000 500,000
Ocean County, NJ, GO Bonds, Series A, 6.40%, 12/01/99
100,000 100,259
Pennsylvania State Turnpike Commission, Transportation RB, Series E, 7.15%,
12/01/99, Escrowed to Maturity 50,000 50,155
Pennsylvania State Turnpike Commission, Transportation RB, Series K, 7.50%,
12/01/99, Pre-refunded @ 102 485,000 496,123
Pennsylvania State Turnpike Commission, Transportation RB, Series K, 7.50%,
12/01/99, Pre-refunded @ 102 1,000,000 1,023,274
Peoria County, IL, GO Bonds, 4.75%, 12/15/99, FGIC Insured
450,000 450,852
Snohomish County, WA Public Utility District No. 001, Electric Util RB,
4.00%, 12/01/99, FSA Insured 225,000 225,046
Trinity Area, PA School District, GO Bonds, 5.90%, 11/01/99, Escrowed to
Maturity 150,000 150,000
Tumwater, WA, GO Bonds, 5.50%, 12/01/99, MBIA Insured
105,000 105,147
Uxbridge, MA, GO Bonds, 6.75%, 12/15/99, FGIC Insured
125,000 125,445
Volunteer State Student Funding Corp, TN, Higher Education RB, Sub-Series B,
4.85%, 12/01/99 2,000,000 2,001,842
Wayne County, TN, GO Bonds, 3.71%, 12/01/99, FSA Insured
215,000 215,000
Weber County, UT Municipal Building Auth, Public Improv RB, (Lease Rev),
4.25%, 12/15/99, MBIA Insured 125,000 125,075
West Chester County, NY, GO Bonds, 6.625%, 11/01/99
50,000 50,000
Wyoming Valley, PA Sanitation Auth, Water & Sewer RB, 6.75%, 11/15/99,
Pre-refunded @ 102 100,000 102,133
Total Municipal Bonds (Cost $106,379,910) $106,379,910
Total Investments (100%) (Cost $153,122,910) $153,122,910
Summary of Ratings (Unaudited):
AAA/Equivalent 98%, AA/Equivalent 2%
Average Portfolio Maturity: 69 Days
THE FLORIDA TAXFREE SHORTTERM FUND
PRINCIPAL VALUE
AMOUNT
VARIABLE RATE DEMAND NOTES
Florida (5%)
Collier County, FL Health Facilities Auth, Hospital RB, (Cleveland Clinic
Health System Obligated Group Guaranteed), Series 1999, 3.65%, 01/01/33,
NBD Bank, SBPA 300,000 300,000
Dade County, FL IDA, Pollution Ctrl RB, (Florida Power & Light), 3.55%,
04/01/20 100,000 100,000
Hillsborough County, FL IDA, Pollution Ctrl RB, (Tampa Electric Co.), Series
1990, 3.50%, 9/01/25 200,000 200,000
Jacksonville, FL, Pollution Ctrl RB, (Florida Power & Light), 3.5%,05/01/29
400,000 400,000
Palm Beach County, FL, Water & Sewer RB, 3.55%, 10/01/11, The Sanwa Bank,
Limited, LOC 350,000 350,000
St. Johns County, FL HFA, Housing RB, (Remington Project) 3.45%, 02/15/28,
FNMA Collateralized 400,000 400,000
Other (Non-Florida) (3%)
Los Angeles County, CA IDA, IDB, (353 Properties Ltd. Partnership), 4.25%,
12/01/05, Dai-Ichi Kangyo Bank Ltd., LOC 350,000 350,000
Monroe County, GA Development Auth, Pollution Control RB, (GA Power), 1st
Series, 3.60%, 04/01/32 500,000 500,000
Total Variable Rate Demand Notes (Cost $2,600,000) $2,600,000
MUNICIPAL BONDS
Florida (88%)
Baker County, FL Hospital Auth, Hospital RB, Series 1998, 4.30%, 09/01/03,
ACA Insured 305,000 298,391
Bay Medical Center, FL, Hospital RB, (Bay Medical Center Project), 4.70%,
10/01/02, AMBAC Insured 100,000 100,511
Brevard County, FL School Board, Certificates of Participation, 6.50%,
07/01/02, Pre-refunded @ 102 100,000 107,065
Brevard County, FL Solid Waste Management System, Solid Waste RB, 4.00%,
04/01/01, FSA Insured 100,000 99,984
Broward County, FL, GO Bonds, Series C, 5.50%, 01/01/00
100,000 100,283
Broward County, FL, GO Bonds, Series B, 5.60%, 01/01/01
200,000 203,088
Broward County, FL, GO Bonds, Series B, 6.00%, 01/01/04
50,000 52,493
Broward County, FL Airport System, Transportation RB, (Passenger Facility
Charge/Convertible Lien Bonds), Series 1998H-1, 4.50%, 10/01/04, AMBAC
Insured 300,000 296,991
Broward County, FL Educational Facilities Auth, Higher Education RB, (Nova
Southeastern University Project), 5.40%, 04/01/02, Connie Lee Insured
75,000 76,634
Broward County, FL School Board, Certificates of Participation, 6.20%,
07/01/01, MBIA Insured 100,000 103,507
Broward County, FL, Public Improv RB, (Tourist Development Tax Special
Rev - Convention Center), Zero Coupon, 10/01/01, Escrowed to Maturity
450,000 414,509
Canaveral, FL, Transportation RB, 5.40%, 06/01/02, FGIC Insured
100,000 102,442
Celebration Community Development District, FL, Special Assessment RB,
Series B, 4.60%, 05/01/03, MBIA Insured 250,000 248,483
Clay County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
4.80%, 04/01/02, GNMA/FNMA Collateralized 125,000 124,741
Clay County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
4.50%, 04/01/03, GNMA/FNMA Collateralized 250,000 247,108
Clearwater, FL Housing Auth, Housing RB, (Hamptons Apartments), 8.25%,
05/01/04, Pre-refunded @ 103 600,000 700,722
Clearwater, FL Housing Auth, Housing RB, (Hamptons at Clearwater Project),
4.40%, 05/01/00, ACA Insured 130,000 129,994
Collier County, FL, Special Assessment RB, (Pine Ridge Industrial Park &
Naples Production Park Municipal Taxing & Benefit Units), 5.00%, 11/01/99
255,000 255,013
Coral Springs, FL, GO Bonds, 4.25%, 04/01/01
50,000 50,040
Dade County, FL, GO Bonds, 5.25%, 11/01/04, FGIC Insured
50,000 51,349
Dade County, FL Aviation Auth, Transportation RB, Series X, 5.25%, 10/01/01
100,000 101,381
Dade County, FL Educational Facilities Auth, Higher Education RB, (St.
Thomas University), 7.65%, 01/01/00, Pre-refunded @ 102
40,000 41,048
Dade County, FL, Guaranteed Entitlement Spl Assmt Bonds, Series B, Zero
Coupon, 02/01/01, MBIA Insured 250,000 236,675
Dade County, FL School Board, Certificates of Participation, 5.00%, Series A,
05/01/01, Escrowed to Maturity 125,000 126,868
Dade County, FL School Board, Certificates of Participation, Series A, 5.50%,
05/01/04, Pre-refunded @ 101 400,000 416,432
Dade County, FL School District, GO Bonds, 5.00%, 06/01/00, MBIA Insured
50,000 50,359
Dade County, FL School District, GO bonds, 5.50%, 08/01/04, Pre-refunded@101
100,000 103,947
Dade County, FL, Special Assessment RB, (Various Purpose Improv Projects),
Series A, 7.15%, 07/01/00, Pre-refunded @ 100
25,000 25,539
Dade County, FL, Public Improv RB, Special Obligation, (Courthouse Center
Project), 6.35%, 04/01/04, Pre-refunded @ 102
495,000 535,724
Delray Beach, FL, GO Bonds, (Decade of Excellence Program), 6.80%, 02/01/00,
Pre-refunded @ 102 50,000 51,354
Escambia County, FL Health Facilities Auth, Hospital RB, (Azalea Trace, Inc.
Project), 5.25%, 01/01/03 300,000 298,164
Escambia County, FL Health Facilities Auth, Hospital RB, (Baptist Hospital &
Baptist Manor Project), 4.20%, 10/01/02 165,000 162,104
Escambia County, FL Health Facilities Auth, Hospital RB, (Baptist Hospital &
Baptist Manor Project), 4.40%, 10/01/03 210,000 206,067
Escambia County, FL Health Facilities Auth, Hospital RB, (Charity Obligated
Group), Series C, 3.90%, 11/01/04 250,000 248,698
Escambia County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
Series A, 4.70%, 04/01/01, GNMA Collateralized
90,000 90,009
Escambia County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
Series A, 4.50%, 04/01/03, GNMA Collateralized
245,000 242,165
Escambia County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
4.10%, 04/01/04, GNMA Collateralized 150,000 145,334
Escambia County, FL, Public Improv RB, Series A, 5.00%, 01/01/00
250,000 250,160
Escambia County, FL School Board, Municipal Lease Obligation, Certificates
of Participation, 5.80%, 02/01/00, Escrowed to Maturity
15,000 15,077
Escambia County, FL School Board, Certificates of Participation, 6.25%,
02/01/02, Pre-refunded @ 100 45,000 46,785
Escambia County, FL School Board, Municipal Lease Obligation, Certificates
of Participation, 5.80%, 02/01/00, FSA Insured
35,000 35,176
Florida Development Finance Corporation, IRB, (FDFC Guaranty Program), 1997
Series B, 4.90%, 05/01/03, AMBAC Insured 40,000 40,500
Florida Development Finance Corporation, IRB, (FDFC Guaranty Program), 1997
Series C, 4.90%, 05/01/03, AMBAC Insured 30,000 30,375
Florida Gas Utility, Electric Util RB, (Gas Project No. 1), 5.00%, 12/01/03,
FSA Insured 250,000 254,518
Florida HFA, General Mortgage RB, Series A, 5.75%, 06/01/02, FHA Insured
45,000 45,797
Florida HFA, Housing RB, Single Family Mortgage RB, 1995 Series A, 5.70%,
01/01/01, GNMA Collateralized 70,000 70,713
Florida HFA, Housing RB, (Turtle Creek Apartments Project), 1996 Series C,
4.75%, 05/01/00, AMBAC Insured 85,000 85,080
Florida HFA, Rfdg Homeowner Mortgage & RB, Series 2, 5.20%, 01/01/02
235,000 236,034
Florida HFA, Housing RB, Series C, 4.90%, 08/01/01, FNMA Collateralized
150,000 151,194
Florida HFA, Housing RB, (Crossings Project), 4.85%, 02/01/01, Mandatory
Tender @ 100, CT General, GTY 440,000 442,935
Florida State, GO Bonds, (Pollution Ctrl), Series Y, 6.50%, 07/01/02,
Pre-refunded @ 101 175,000 185,805
Florida State, GO Bonds, (Pollution Ctrl), Series Y, 6.60%, 07/01/02,
Pre-refunded @ 101 135,000 143,672
Florida State, GO Bonds, (Jacksonville Transportation, Sr. Lien), 6.40%,
07/01/02, Pre-refunded @ 101 170,000 180,073
Florida State Department of Transportation, GO Bonds, (Right-of-Way Acquisition
and Bridge Construction), Series 1997A, 6.40%, 07/01/02
200,000 210,224
Florida State Board of Education, GO Bonds, Series A, Zero Coupon, 06/01/00,
Pre-refunded @ 37.658 180,000 70,817
Florida State Board of Education, GO Bonds, Series C, 5.40%, 06/01/03
60,000 61,649
Florida State Board of Education, GO Bonds, Series A, 6.75%, 06/01/01,
Pre-refunded @ 101 175,000 183,391
Florida State Board of Education, GO Bonds, Series C, 6.50%, 06/01/02,
Pre-refunded @ 102 400,000 424,096
Florida State Board of Education, GO Bonds, Series C, 6.625%, 06/01/02,
Pre-refunded @ 101 100,000 106,315
Florida State Board of Education, GO Bonds, Series B, 6.00%, 06/01/02,
Pre-refunded @ 101 295,000 309,201
Florida State Board of Education, GO Bonds, Series C, 5.125%, 06/01/00
100,000 100,787
Florida State Board of Education, GO Bonds, Series A, 5.25%, 06/01/00
65,000 65,560
Florida State Board of Education, GO Bonds, Series B, 6.00%, 06/01/02,
Pre-refunded @ 101 85,000 89,071
Florida State Board of Education, GO Bonds, Series A, 6.50%, 06/01/03
300,000 319,665
Florida State Board of Education, GO Bonds, Series A, 5.00%, 06/01/04
200,000 203,020
Florida State Board of Education, GO Bonds, Series C, 5.90%, 05/01/00,
Escrowed to Maturity 25,000 25,166
Florida State Department of General Services, Division of Facilities
Management, Public Improv RB, (FL Facilities Pool), 7.00%, 09/01/00,
Pre-refunded @ 102 100,000 104,497
Florida State Board of Regents, Certificates of Participation, State
University System, (FL Atlantic University Foundation, Inc.), 4.00%,
05/01/04, Asset Guaranty Insured 125,000 121,484
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 @ 102 100,000 105,918
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 @ 101 100,000 105,551
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 @ 101 175,000 184,714
Florida State Division of Bond Finance, Department of General Services,
Public Improv RB, (Dept of Natural Resources-Preservation 2000), Series A,
6.00%, 07/01/03, AMBAC Insured 500,000 524,055
Florida State Division of Bond Finance, Investment Fraud Restoration
Financing Corp, Miscellaneous RB, 3.85%, 05/01/04, MBIA Insured
250,000 242,745
Florida Municipal Power Agency, Electric Util RB, (St. Lucie Project), 5.00%,
10/01/01, FGIC Insured 100,000 101,183
Florida State Turnpike Auth, Transportation RB, Series A, 6.25%, 07/01/01,
Pre-refunded @ 100 45,000 46,464
Gainesville, FL Util System, Electric Util RB, Series A, 5.90%, 10/01/00
50,000 50,850
Gulf Breeze, FL, Public Improv RB, (Local Government Loan Program), Series
1985B, 4.50%, 12/01/04, FGIC Insured 500,000 496,840
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
100,000 104,834
Hernando County, FL, Solid Waste RB, 7.125%, 10/01/00, Pre-refunded @ 102
75,000 78,639
Hillsborough County, FL Aviation Auth, Transportation RB, (Tampa International
Arpt), Series A, 5.00%, 10/01/01, AMBAC Insured
250,000 252,820
Homestead, FL, Special Assessment RB, (Hurricane Andrew), 5.25%, 03/01/03,
Escrowed to Maturity 140,000 143,170
Indian Trace Community Development District, FL, Water Management-Special
Benefit Bonds, Series A, 5.10%, 05/01/01, MBIA Insured
250,000 252,923
Indian Trace Community Development District, FL, Water Management-Special
Benefit Bonds, Series A, 5.20%, 05/01/02, MBIA Insured
35,000 35,624
Indian Trail Water Control District, FL, Public Improv RB, (Unit of Development
No.1), Series 1990, 7.875%, 07/01/00 10,000 10,121
Jacksonville, FL, Capital Improv RB, (Gator Bowl Project), 5.15%, 10/01/02,
AMBAC Insured 100,000 102,142
Jacksonville, FL, Capital Improv RB, (Gator Bowl Project), 6.00%, 10/01/04,
Pre-refunded @ 101 165,000 175,783
Jacksonville, FL Electric Auth, Electric Util RB, (St. Johns River), Issue 2,
Series 16, 5.00%, 10/01/03 250,000 254,080
Jacksonville, FL Health Facilities Auth, Hospital RB, (St. Lukes Hospital
Association), 6.30%, 11/15/99 50,000 50,045
Jacksonville, FL Health Facilities Auth, Hospital RB, 7.375%, 07/01/02,
Pre-refunded @ 100 50,000 53,727
Jacksonville, FL Health Facilities Auth, Hospital RB, (National Benevolent
Association-Cypress Village Project), Series 1996A, 4.75%, 12/01/99
115,000 115,075
Jacksonville, FL Health Facilities Auth, Hospital RB, (National Benevolent
Association-Cypress Village Project), Series 1996A, 5.00%, 12/01/00
125,000 125,309
Jacksonville, FL Health Facilities Auth, Hospital RB, (National Benevolent
Association-Cypress Village Project), Series 1996A, 5.20%, 12/01/01
130,000 130,350
Key West, FL Util Board, Electric Util RB, Capital Appreciation Bonds, 9.75%,
04/01/00, Pre-refunded @ 103 100,000 105,387
Lakeland, FL, Hospital RB, (Lakeland Regional Medical Center), 4.20%, 11/15/02,
MBIA Insured 90,000 89,263
Largo, FL, Hospital RB, (Sun Coast Health System) 5.75%, 03/01/01
285,000 285,157
Lee County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
Series A, Subseries 2, 5.25%, 03/01/02, GNMA Collateralized
50,000 50,335
Lee County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
Series 1996A, Subseries 3, 5.00%, 03/01/00, GNMA Collateralized
40,000 40,113
Lee County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
Series 1996A, Subseries 3, 5.10%, 03/01/01, GNMA Collateralized
40,000 40,177
Lee County, FL School Board, Certificates of Participation, Series A, 6.25%,
08/01/01, Pre-refunded @ 102 80,000 84,214
Lee County, FL School Board, Certificates of Participation, Series A, 4.85%,
08/01/03, FSA Insured 50,000 50,578
Lee County, FL School Board, Certificates of Participation, Series A, 5.50%,
08/01/03, Pre-refunded @ 102 130,000 136,544
Lee County, FL School Board, Certificates of Participation, Series A, 4.30%,
08/01/01, FSA Insured 50,000 50,014
Lee County, FL IDA, Water & Sewer RB, (Bonita Springs Utilities Project),
4.80%, 11/01/01, MBIA Insured 70,000 70,666
Lee County, FL, Public Improv RB, (Local Option Gas Tax Revenues), 4.70%,
10/01/03, FGIC Insured 100,000 100,708
Lee County, FL Solid Waste System, Solid Waste RB, Series A, 6.90%, 10/01/03,
MBIA Insured 100,000 106,089
Lee County, FL Solid Waste System, Solid Waste RB, Series A, 4.50%, 10/01/01,
MBIA Insured 95,000 94,876
Manatee County, FL HFA, Single Family Mortgage RB, Subseries 1, 5.375%,
05/01/02, GNMA Collateralized 35,000 35,342
Marion County, FL Hospital District, Hospital RB, (Munroe Regional Health
System), Series 1999, 4.375%, 10/01/02 250,000 246,425
Marion County, FL, Solid Waste RB, 6.20%, 08/01/00, FGIC Insured
50,000 50,882
Martin County, FL, GO Bonds, 6.40%, 02/01/00, Pre-refunded @ 102
75,000 76,956
Martin County, FL, GO Bonds, 6.50%, 02/01/00, Pre-refunded @ 102
50,000 51,317
Martin County, FL Health Facilities Auth, Hospital RB, (Martin Memorial
Hospital), Series A, 7.00%, 11/15/00, MBIA Insured
175,000 180,458
Martin County, FL, Combined Spl Assmt RB, 5.30%, 11/01/01
145,000 146,288
Miami Beach, FL Health Facilities Auth, Hospital RB, (South Shore Hospital),
Series A, 4.30%, 08/01/03, ACA Insured 500,000 486,785
Miami Beach, FL Redevelopment Agcy, Tax Increm RB, (City Center/Historic
Conv Village), 4.90%, 12/01/01 50,000 49,831
Miami Beach, FL Redevelopment Agcy, Tax Increm RB, (Historic Conv Village),
Series B, 5.25%, 12/01/01 160,000 160,557
Miami-Dade County, FL, Special Obligation RB, Series C, Zero Coupon, 10/01/03,
MBIA Insured 250,000 208,198
Miami-Dade County, FL Aviation Auth, Transportation RB, Series A, 4.20%,
10/01/03, FGIC Insured 250,000 246,528
Miami, FL Health Facilities Auth, Hospital RB, (Mercy Hospital), 6.45%,
08/01/01, AMBAC Insured 100,000 103,555
Miami, FL Health Facilities Auth, Hospital RB, (Mercy Hospital), 6.85%,
08/01/01, Pre-refunded @ 102 250,000 265,683
Miami, FL Sports & Exhibition Auth, Special Obligation RB, 7.20%, 04/01/00,
Pre-refunded @ 102 175,000 180,857
North Miami, FL Health Facilities Auth, Hospital RB, (Catholic Health Services
Obligation Group), 4.80%, 08/15/01, SunTrust Bank, Central Florida, LOC
100,000 100,557
North Miami, FL Health Facilities Auth, Hospital RB, (Catholic Health Services
Obligation Group), 5.10%, 08/15/04, SunTrust Bank, Central Florida, LOC
190,000 192,645
Orange County, FL Health Facilities Auth, Hospital RB, (Orlando Regional
Healthcare), Series A, 5.15%, 11/01/00, MBIA Insured
75,000 75,989
Orange County, FL HFA, Single Family Mortgage RB, 5.50%, 10/01/00, GNMA/FNMA
Collateralized 50,000 50,351
Orange County, FL HFA, Single Family Mortgage RB, Series A, 5.05%, 04/01/02,
GNMA/FNMA Collateralized 75,000 75,268
Orange County, FL HFA, Single Family Mortgage RB, Series A, 4.70%, 03/01/02,
GNMA/FNMA Collateralized 230,000 229,032
Orange County, FL, Public Improv RB, (Tourist Development Tax), Series B,
6.50%, 10/01/02, Pre-refunded @ 102 295,000 317,166
Orlando, FL Utilities Commission, Electric Util RB, Sub-series A, 6.50%,
10/01/01, Pre-refunded @ 102 275,000 291,577
Orlando, FL Utilities Commission, Electric Util RB, 5.20%, 10/01/00
40,000 40,400
Osceola County, FL HFA, Multifamily Housing RB, (Tierra Vista Apartments
Project), Series A, 4.85%, 06/01/03, FSA Insured
70,000 69,906
Palm Beach County, FL, Criminal Justice Facilities RB, 7.15%, 06/01/00,
Pre-refunded @102 175,000 181,683
Palm Beach County, FL Health Facilities Auth, Hospital RB, (Good Samaritan
Health System), 5.40%, 10/01/00, Escrowed to Maturity
105,000 106,467
Palm Beach County, FL Health Facilities Auth, Hospital RB, (The Waterford
Project), Series 1997, 5.00%, 10/01/03 150,000 149,151
Palm Beach, FL HFA, Housing RB, (Lake Crystal Apts Project), 4.20%, 12/01/04,
FHLMC Collateralized 130,000 125,770
Palm Beach County, FL School District, Certificates of Participation,
Series A, 5.50%, 08/01/01, AMBAC Insured 100,000 102,086
Pasco County, FL Solid Waste RB, 5.375%, 04/01/01, AMBAC Insured
250,000 253,093
Pensacola, FL Health Facilities Auth, Hospital RB, (Daughters of Charity
National Health), 4.60%, 01/01/00 100,000 100,058
Pinellas County, FL HFA, Single Family Mortgage RB, Series 1997C, 4.60%,
09/01/02, GNMA Collateralized 100,000 99,561
Pinellas County, FL Educational Facilities Auth, Industrial Development RB,
(College Harbor Issue), Senior Lien, Series 1996A, 7.25%, 12/01/02
280,000 282,736
Pinellas County, FL Educational Facilities Auth, Industrial Development RB,
(College Harbor Issue), Junior Lien, Series 1996B, 5.40%, 12/01/00
60,000 60,229
Pinellas County, FL Educational Facilities Auth, Industrial Development RB,
(College Harbor Issue), Junior Lien, Series 1996B, 5.60%, 12/01/01
60,000 60,289
Pinellas County, FL Educational Facilities Auth, Industrial Development RB,
(College Harbor Issue), Junior Lien, Series 1996B, 5.70%, 12/01/02
65,000 65,655
Pinellas County, FL Health Facilities Auth, Hospital RB, (Morton Plant Health
System Project), 4.70%, 11/15/00, MBIA Insured
200,000 201,536
Pinellas County, FL, Transportation Improv RB, 5.25%, 08/01/00, FGIC Insured
150,000 151,539
Plantation, FL Health Facilities Auth, Hospital RB, (Covenant Village of FL
Project), 4.00%, 12/01/99 275,000 274,907
Plantation, FL, Water & Sewer RB, Zero Coupon, 03/01/03, MBIA Insured
185,000 149,665
Polk County, FL School Board, Certificates of Participation, (School
District Financing Program), 6.375%, 01/01/01, Pre-refunded @ 102
100,000 104,343
Port Everglades, FL Port Auth, Transportation RB, Series A, Zero Coupon,
09/01/01, FGIC Insured 60,000 55,315
Port of Palm Beach District, FL, Transportation RB, Series A, 4.60%, 09/01/05,
MBIA Insured 500,000 493,430
Port St. Lucie, FL, Water & Sewer RB, Series 1996A, Zero Coupon, 09/01/01,
Escrowed to Maturity 150,000 138,687
Reedy Creek, FL Improv Dist, Water & Sewer RB, Series 1991-1, 6.50%, 10/01/01,
Pre-refunded @ 101 80,000 84,084
St. Johns County, FL IDA, Hospital RB, (Flagler Hospital Project), 5.50%,
08/01/00 230,000 232,244
St. Johns County, FL IDA, Hospital RB, (Flagler Hospital Project), 5.60%,
08/01/01 185,000 187,916
St. Lucie County, FL School Board, Certificates of Participation, 5.00%,
07/01/03, FSA Insured 55,000 55,881
St. Petersburg, FL Professional Sports Facility, Sales Tax RB, Series 1995,
5.00%, 10/01/00, MBIA Insured 100,000 101,029
St. Petersburg, FL, Public Improv RB, 5.80%, 02/01/00, MBIA Insured
40,000 40,201
St. Petersburg, FL, Water & Sewer RB, Series B, 4.00%, 10/01/00, FSA Insured
250,000 250,308
Sarasota County, FL Health Facilities Auth, Hospital RB, (Sunnyside Properties
Project), Series 1995, 5.50%, 05/15/01 340,000 341,435
Sarasota County, FL, Public Improv RB, (Infrastructure Sales Surtax Rev),
3.70%, 09/01/03, FSA Insured 125,000 121,590
Sarasota County, FL, Public Improv RB, (Infrastructure Sales Surtax Rev),
3.80%, 09/01/04, FSA Insured 125,000 120,858
Seminole County, FL School Board, Certificates of Participation, Series A,
6.125%, 07/01/04, Pre-refunded @ 102 185,000 199,030
Seminole, FL Water Control District, Spl Assmt Bonds, (Unit of Development
No. 2), Series 1996, 5.95%, 08/01/01 155,000 155,443
South Broward Hospital District, FL, Hospital RB, 4.65%, 05/01/00, AMBAC
Insured 50,000 50,208
South Broward Hospital District, FL, Hospital RB, 5.05%, 05/01/04, AMBAC
Insured 100,000 101,655
South Lake County, FL Hospital District, Hospital RB, (South Lake Hospital,
Inc.), 4.625%, 10/01/04 65,000 63,706
Sunrise Lakes, FL, GO Bonds, (Phase 4 Recreation Dist), 4.125%, 08/01/04,
AMBAC Insured 100,000 98,006
Tallahassee, FL, Electric Util RB, Series A, 4.00%, 10/01/04, FSA Insured
100,000 97,510
Tallahassee, FL Health Facilities, Hospital RB, (Tallahassee Memorial
Regional Medical Center), Series B, 5.30%, 12/01/00, MBIA Insured
75,000 76,150
Tallahassee, FL Municipal Airport, Airport Rfdg RB, 4.60%, 10/01/01, AMBAC
Insured 165,000 165,325
University of South Florida, University Rev Housing Facilities RB, Series A,
7.00%, 07/01/00, MBIA Insured 165,000 168,371
University of South Florida, University Rev Housing Facilities RB, Series A,
7.00%, 07/01/02, MBIA Insured 185,000 196,986
Virgin Islands Port Auth, Transportation RB, (Rohlsen Terminal), Series 1998A,
4.35%, 09/01/03 455,000 442,133
Volusia County, FL Health Facilities Auth, Hospital RB, (John Knox Project),
Series A, 5.50%, 06/01/05, Asset Guaranty Insured
300,000 306,780
Volusia County, FL, Special Assessment RB, (Bethune Beach Wastewater Project),
6.60%, 07/01/01 320,000 322,371
Volusia County, FL School Board, Certificates of Participation, (Master Lease
Program), 10.00%, 08/01/00, FSA Insured 200,000 209,096
West Orange, FL Healthcare District, Hospital RB, Series 1999A, 5.00%,
02/01/04 500,000 494,870
Winter Springs, FL, Water & Sewer RB, 7.15%, 04/01/00, Pre-refunded @ 102
100,000 103,324
Other (Non-Florida) (4%)
Guam, Government of, GO Bonds, Series A, 4.90%, 11/15/04
500,000 493,405
Puerto Rico, Commonwealth of, GO Bonds, 5.00%, 07/01/01
600,000 605,802
Puerto Rico Electric Power Auth, Electric Util RB, Series X, 4.75%, 07/01/02,
MBIA Insured 75,000 75,313
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 190,000 191,028
Total Municipal Bonds (Cost $30,059,583) $ 29,864,718
Total Investments (100%) (Cost $32,659,583) $ 32,464,718
Summary of Ratings (Unaudited): AAA/Equivalent 62%, AA/Equivalent 12%,
A/Equivalent 12%, BBB/Equivalent 8%, Other 6%
Average Portfolio Maturity: 2.46 Years
THE FLORIDA TAXFREE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1999 (UNAUDITED)
Money Fund ShortTerm Fund
ASSETS
Investments in securities, at value
(cost $153,122,910 and
$32,659,583 respectively) $153,122,910 $32,464,718
Cash 24,355 158,202
Receivables:
Interest 1,376,129 452,103
Fund shares sold 127,400 --
Total assets 154,650,794 33,075,023
LIABILITIES
Payable for investment securities
purchased -- 105,322
Dividend payable 403,000 111,596
Funds advanced by manager 52,394 11,008
Total liabilities 455,394 227,926
NET ASSETS
Net assets $154,195,400 $32,847,097
Number of shares outstanding 154,206,660 3,304,968
Net asset value, offering price and
redemption price per share $1.00 $9.94
THE FLORIDA TAXFREE FUNDS
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 1999 (UNAUDITED)
INVESTMENT INCOME Money Fund ShortTerm Fund
Income:
Interest $2,663,708 $669,516
Expenses:
Investment advisory fee (Note 2) 392,020 92,448
Distribution and service fees (Note 2) 47,759 10,192
Custodian fees (Note 3) 12,990 13,206
Transfer agency fees and expenses (Note 2) 54,483 7,480
Printing costs 8,189 1,240
Professional fees 19,602 8,400
Insurance 1,638 289
Registration and filing fees 13,827 10,566
Trustees' fees and expenses 4,378 773
Other expenses 11,943 2,138
Total expenses 566,829 146,732
Expense reimbursements and fee
reductions (Note 2) (244,199) (83,115)
Custodian fees paid indirectly (
(Note 3) (9,014) (1,985)
Net expenses 313,616 61,632
Net investment income $2,350,092 $607,884
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments $(8,415) $(50)
Unrealized appreciation (depreciation)
on investments __ (522,152)
Net realized and unrealized gain (loss)
on investments (8,415) (522,202)
Increase in net assets from operations $2,341,677 $85,682
THE FLORIDA TAXFREE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
MONEY FUND
Six Months Year
Ended (unaudited) Ended
10/31/99 4/30/99
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $2,350,092 $4,889,815
Net realized gain (loss) on
Investments (8,415) (7,193)
Unrealized appreciation (depreciation) of
Investments -- --
Increase in net assets from
operations 2,341,677 4,882,622
Dividends to shareholders from:
Net investment income (2,350,092) (4,890.020)
Fund share transactions (Note 4) (6,206,578) 11,056,406
Net increase (decrease) in net assets (6,214,993) 11,049,008
Net Assets:
Beginning of period 160,410,393 149,361,385
End of period $154,195,400 $160,410,393
SHORTTERM FUND
Six Months Year
Ended Ended
(Unaudited) 4/30/99
10/31/99
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income $607,884 $1,072,403
Net realized gain (loss) on
investments (50) 22,744
Unrealized appreciation (depreciation)
of investments (522,152) 126,150
Increase in net assets from operations 85,682 1,221,297
Dividends to shareholders from
Net investment income (607,996) (1,072,291)
Fund share tranactions (Note 4) 4,013,478 6,254,235
Net Increase (decrease) in net assets 3,491,164 6,403,241
Net Assets
Beginning of period 29,355,933 22,952,692
End of period $32,847,097 $29,355,933
NOTES TO FINANCIAL STATEMENTS (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 straight line 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.
Securities Traded on a When-Issued or Delayed Delivery Bonds
The Funds may trade on a when-issued or delayed delivery basis, with payment
and delivery scheduled for a future date. These transactions are subject to
market fluctuations and are subject to the risk that the value at delivery
may be more or less than the trade date purchase price. Although the Funds
will generally purchase these securities with the intention of acquiring such
securities, it may sell such securities before the settlement date.
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, 1999 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 an
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.
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 Short
Term 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 six-month period
ended October 31, 1999, management fees totaled $392,020 and $92,448 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, 1999, fees under this agreement amounted to $34,929 and $2,916
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 .28% of each Fund's average daily net assets for the period May 1 -
June 14, 1998, and .40% of each Fund's average daily net assets for the
period June 15, 1998 through April 30, 1999. Expenses in excess of .40% of
each Fund's average daily net assets will continue to be paid by WRH 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. The amounts reported as distribution and
service 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, 1999, the Money Fund and the
ShortTerm Fund paid $91 and $2, 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, 1999, custodian fees were reduced
by earnings credits of $9,014 and $1,985 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
$154,206,660 and $33,056,105, respectively. Transactions in Fund shares for
the six-month period ended October 31, 1999 and the year ended
April 30, 1999 were as follows:
MONEY FUND* SHORTTERM FUND
Six Months Year SHARES AMOUNT
Ended Ended Six Months Year Ended Six Months Year Ended
10/31/99 4/30/99 Ended 10/31/99 4/30/99 Ended 10/31/99 4/30/99
SOLD:
153,382,488 340,729,327 1,462,176 2,417,264 14,621,091 24,440,324
ISSUED ON REINVESTED DIVIDENDS:
2,137,884 4,744,159 54,025 93,290 541,387 942,753
REDEEMED:
(161,726,950)(334,417,080) (1,114,497) (1,891,621) (11,149,000) (19,128,842)
NET INCREASE (DECREASE)
(6,206,578) 11,056,406 401,704 618,933 4,013,478 6,254,235
* 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-month period ended October 31,
1999 were $7,290,135 and $4,827,573, respectively. At October 31, 1999, the
cost of securities for federal income tax purposes was the same as that for
financial reporting purposes. Net unrealized depreciation, which amounted
to $194,865 for the ShortTerm Fund, consisted of aggregate gross unrealized
appreciation and (depreciation) of $51,990 and ($246,855), respectively.
As of October 31, 1999, the accumulated net realized losses were $11,260 and
$14,143 for the Money Fund and ShortTerm Fund, respectively. For tax
purposes, such losses are available to offset future realized capital gains
until the capital loss carryforwards expire in 2007 for the Money Fund and
2002 for the ShortTerm Fund.
6. Financial Highlights
Money Fund
Per share operating performance
(for a share outstanding throughout the period)
Six Months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
10/31/99 4/30/99 4/30/98 4/30/97 4/30/96 4/30/95
Net value, beginning of period:
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net Investment Income:
0.015 0.030 0.034 0.034 0.036 0.035
Less distributions:
Dividends from net investment
Income:
(0.015) (0.030) (0.034) (0.034) (0.036) (0.035)
Net asset value, end of period:
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total return*:
3.01% 3.02% 3.50% 3.42% 3.69% 3.59%
Ratios/Supplemental Data
Net assets at end of period (000's):
$154,195 $160,410 $149,361 $136,453 $113,943 $105,647
Ratios to Average Daily Net Assets*
Expenses:
.40% .39% .26% .20% .20% .07%
Expenses (Before reimbursement)**:
72% .73% .73% .78% .80% 1.04%
Net Investment Income:
2.99% 2.96% 3.43% 3.36% 3.62% 3.63%
** Effective for the year ended April 30, 1996 and thereafter, expense
ratios (before reimbursement) no longer reflect reduction from custodian
fee offset arrangements.
* Figures for six-months ended October 31,1999 are annualized.
6. Financial Highlights (continued)
ShortTerm Fund
Per share operating performance
(for a share outstanding throughout the period)
Six Months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
10/31/99 4/30/99 4/30/98 4/30/97 4/30/96 4/30/95
Net asset value, beginning of period:
$10.11 $10.05 $9.95 $9.94 $9.89 $9.86
Income from investment operations:
Net investment income:
0.20 0.40 0.42 0.43 0.42 0.42
Net realized and unrealized gain (loss) on investments:
(0.17) 0.06 0.10 0.01 0.05 0.03
Total from investment operations:
0.03 0.46 0.52 0.44 0.47 0.45
Less distributions:
Dividends from net investment income
(0.20) (0.40) (0.42) (0.43) (0.42) (0.42)
Net asset value, end of period:
$9.94 $10.11 $10.05 $9.95 $9.94 $9.89
Total return*:
0.57% 4.71% 5.23% 4.59% 4.85% 4.66%
Ratios/Supplemental Data
Net assets at end of period (000's):
$32,847 $29,356 $22,953 $28,853 $12,344 $11,113
Ratios to Average Daily Net Assets*
Expenses:
.40% .39% .26% .20% .20% .07%
Expenses (Before reimbursement)**:
.95% .93% .93% 1.18% 1.42% 1.50%
Net Investment
Income:
3.93% 4.00% 4.20% 4.27% 4.25% 4.25%
Portfolio turnover rate:
17.2% 25.6% 40.2% 40.9% 83.4% 35.9%
** Effective for the year ended April 30, 1996 and thereafter, expense ratios
(before reimbursement) no longer reflect reduction from custodian fee
offset arrangements.
* Figures for six-months ended October 31,1999 are annualized (except for
portfolio turnover rate).
CHANGE OF AUDITORS
On August 13, 1999, McGladrey & Pullen, LLP (McGladrey) resigned as independent
auditors of the Funds pursuant to an agreement by PricewaterhouseCoopers LLP
(PwC) to acquire McGladrey's investment company practice. The McGladrey
partners and professionals serving the Funds at the time of the acquisition
joined PwC. The reports of McGladrey on the financial statements of the
Funds during the past two fiscal years contained no adverse opinion or
disclaimer of opinion, and were not qualified or modified as to uncertainty,
audit scope or accounting principles. In connection with its audits for the
two most recent fiscal years and through August 13, 1999, there were no
disagreements with McGladrey on any matter of accounting principle or
practices, financial statement disclosure, or auditing scope or procedure,
which disagreements, if not resoved to the satisfaction of McGladrey would
have caused it to make reference to the subject matter of disagreement in
connection with its report. On August 26, 1999, the Funds, with the
approval of their Board of Trustees and their Audit Committee, engaged PwC
as its independent auditors.
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