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 33701-4386
(800) 557-7555
Semi-Annual Report
October 31, 2000
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 8
Municipal Bonds 8
Statements of Assets and Liabilities 15
Statements of Operations 16
Statements of Changes in Net Assets 17
Notes to Financial Statements 18
Dear Shareholder:
We are pleased to present the Semi-Annual Report on The Florida TaxFree
Funds for the six months period ended October 31, 2000. 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 were $138.5 million as of October 31, 2000.
This compares with $137.0 million on April 30, 2000 and $154.2 million on
October 31,1999.
iMoneyNet Inc. (formerly IBC Financial Data, Inc.) is a respected mutual
fund performance and statistical reporting company that ranks money market
fund performance by category. We are pleased to announce for the five-year
period ending October 31, 2000, The Florida TaxFree Money Fund was ranked
number 11 out of 240 tax-exempt money market funds by iMoneyNet, based on
total return for the period. For the three-year period ended
October 31, 2000, The Florida TaxFree Money Market Fund was ranked 17th out
of 270 tax-free state-specific funds by iMoneyNet. We are pleased to report
that, for the year ending October 31, 2000, The Florida TaxFree Money Market
Fund was ranked by iMoney 19th out of a total of approximately 304
tax-free state-specific funds tracked by that firm based on total return for
the period. 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 3.90% as of October 31, 2000. For
investors in the 36% federal tax bracket who have Florida intangible assets
of $200,000 or more, the tax equivalent yield was 6.19%.
The Florida TaxFree ShortTerm Fund
As of October 31, 2000, total net assets for the Fund were $31.2 million,
compared with assets of $32.8 million on April 30, 2000 and $32.8 million on
October 31, 1999. The portfolio had a dollar-weighted average maturity of
2.37 years and a 30-day SEC yield of 4.48% on October 31, 2000. This yield
equates to a tax equivalent yield of 7.10% 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 $9.95
on October 31, 2000, compared with $9.84 on April 30, 2000, and $9.94 on
October 31, 1999, contributing to a 4.70% cumulative total return on the
Fund for the year ended October 31, 2000. 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, 2000 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, 2000 was 32.64%. This represents a return of 4.15% 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 $13,263.80 on October 31, 2000, 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, 2000
Variable Rate Demand Notes Principal Value
Amount
Florida (29.5%)
Capital Trust Agency, FL, Housing RB, (Community Loan Program), Series 1999A,
4.48%, 12/01/32, Anchor National Life Insurance Co., Payment & Liquidity
Agreement, National Union Fire Insurance Co., GTY
$3,000,000 $3,000,000
Collier County, FL HFA, Housing RB, (River Reach), 4.40%, 12/01/15,
Banco Santander Central Hispano, LOC 2,400,000 2,400,000
Dade County, FL IDA, Pollution Ctrl RB, (Florida Power & Light), 4.65%,
06/01/21 200,000 200,000
Dade County, FL IDA, Pollution Ctrl RB, (Florida Power & Light), 4.65%,
06/01/21 1,600,000 1,600,000
Dade County, FL IDA, IDB, (Arlington Sales), 4.85%, 06/01/08, Credit
Commercial de France, LOC 1,050,000 1,050,000
Florida HFA, Housing RB, (Lakes of Northdale Project), Series D, 4.65%,
06/01/07, SouthTrust Bank of AL, LOC 2,065,000 2,065,000
Florida HFA, Housing RB, (Town Colony Development), 1983 Series E, 4.35%,
12/01/05, Credit Suisse First Boston, LOC 1,485,000 1,485,000
Florida Housing Finance Corp, Housing RB, (South Pointe Project), Series J,
4.30%, 02/15/28, FNMA Collateralized 1,000,000 1,000,000
Florida Local Government Finance Auth, IDB, (Lake Wales Medical Centers
Project), Series A, 4.65%, 03/01/15, First Union National Bank, LOC
1,048,000 1,048,000
Jacksonville, FL Electric Auth, Electric Util RB, Series B, 4.60%, 10/01/10,
Landesbank Hessen-Thuringen Girozentrale, SPBA 1,000,000 1,000,000
Jacksonville, FL, Industrial Development RB, (Coastal Industries), 4.75%,
08/01/08, ABN-AMRO Bank, N.V., LOC 375,000 375,000
Lake County, FL IDA, IDB, (Novelty Crystal Corp.), 4.85%, 03/01/09, Credit
Commercial de France, LOC 1,225,000 1,225,000
Martin County, FL, Pollution Control RB, (Florida Power & Light), Series
2000, 4.70%, 07/15/22 500,000 500,000
Miami-Dade County, FL IDA, Industrial Development RB, (Holy Cross Academy
Project), 4.40%, 07/01/20, SunTrust Bank, N.A., LOC
2,500,000 2,500,000
Orange County, FL Health Facilities Auth, Hospital RB, (Adventist Health
Systems/Sunbelt Obligated Group), Floater Certificates - Series 171,
Series A, 4.58%, 11/15/14, FSA Insured, Morgan Stanley Dean Witter,
Liquidity Facility 5,875,000 5,875,000
Palm Beach County, FL HFA, Housing RB, (Azalea Place Apartments), Series
1999A, 4.32%, 12/01/32, SunTrust Bank, LOC 500,000 500,000
Palm Beach County, FL, Water & Sewer RB, 4.75%, 10/01/11, AMBAC Insured,
First Union National Bank, SBPA 3,895,000 3,895,000
St. Lucie County, FL, Pollution Control, (Florida Power & Light), 4.70%,
9/1/28 4,200,000 4,200,000
St. Lucie County, FL, Solid Waste RB, (Florida Power & Light), Series 2000A,
4.85%, 01/15/27 1,000,000 1,000,000
St. Petersburg, FL, Public Improv RB, (Florida International Museum Project),
Series 1997A, 4.40%, 10/01/17, SunTrust Bank, Tampa Bay, LOC
4,275,000 4,275,000
Sumter County, FL IDA, IDB, (Great Southern Wood, FL, Inc.), 4.70%,
04/01/05, SouthTrust Bank, LOC 300,000 300,000
Volusia County, FL IDA, IDB, (RS Displays Inc. Project), 4.85%, 06/01/09,
Credit Commercial de France, LOC 625,000 625,000
Other (Non-Florida) (2.5%)
Brazos, TX River Auth, Pollution Control RB, (Texas Utilities Electric Co.),
Series A, 4.75%, 04/01/30, Morgan Guaranty Trust Company, LOC
2,400,000 2,400,000
Brazos, TX River Auth, Pollution Control RB, (Texas Utilities Electric Co.),
Series '96A, 4.75%, 03/01/26, AMBAC Insured, Bank of New York, SBPA
500,000 500,000
Southwestern IL Development Auth, Solid Waste RB, (Shell Oil Company, Wood
River Project), 4.75%, 11/01/25 600,000 600,000
Total Variable Rate Demand Notes (Cost $43,618,000) $43,618,000
Principal
Municipal Bonds Amount Value
Florida (57.1%)
Brevard County, FL School District, Tax Anticipation Notes, 4.60%, 06/29/01
$2,000,000 $2,003,448
Broward County, FL, Gas Tax RB, 6.20%, 09/01/01, Escrowed to Maturity
100,000 101,485
Broward County, FL School District, Revenue Anticipation Notes, Series B,
4.60%, 04/11/01 2,250,000 2,253,323
Broward County, FL School District, Tax Anticipation Notes, 5.00%, 09/11/01
1,750,000 1,760,386
Broward County, FL, Sales Tax RB, Commercial Paper, 4.20%, 11/02/00, Credit
Local de France, Line of Credit 1,010,000 1,010,000
Celebration Community Development District, FL, Special Assessment RB,
5.25%, 05/01/01, MBIA Insured 200,000 200,766
Crescent City, FL, Water & Sewer RB, Bond Anticipation Notes, 5.00%,
04/01/01 1,625,000 1,627,596
Dade County, FL, Transportation RB, (Seaport Bonds), 6.25%, 10/01/01,
Pre-refunded @ 101 75,000 76,947
Dade County, FL School Board, Certificates of Participation, Series A,
4.60%, 05/01/01, Escrowed to Maturity 500,000 500,000
Dunedin, FL, Hospital RB, (Mease Health Care), 4.60%, 11/15/00, MBIA Insured
350,000 350,034
Essex County, FL Improvement Auth, Public Improv RB, 7.00%, 12/01/00,
Pre-refunded @ 102 225,000 229,939
First Florida Governmental Financing Commission, IDB, Series A, 4.40%,
07/01/01, MBIA Insured 200,000 200,000
Florida Rural Utilities Financing Commission, Public Improv RB, (Public
Projects Construction), 5.25%, 09/01/01 2,875,000 2,895,737
Florida State Board of Education, GO Bonds, Series A, 6.75%, 06/01/01,
Pre-refunded @ 101 100,000 102,209
Florida State Board of Education, GO Bonds, Series A, 6.75%, 06/01/01,
Pre-refunded @ 101 200,000 204,587
Florida State Board of Education, GO Bonds, Series A, 4.70%, 06/01/01
500,000 501,107
Florida State Board of Education, GO Bonds, Series A, 4.10%, 01/01/01
100,000 99,976
Florida State Board of Education, GO Bonds, (Capital Outlay), 6.00%,
01/01/01 2,240,000 2,246,944
Florida State Board of Education, GO Bonds, (Capital Outlay), Series A,
5.00%, 06/01/01 2,915,000 2,927,312
Florida State Division of Bond Finance, Department of General Services,
Sales Tax RB, (Dept of Natural Resources-Preservation 2000), Series A,
6.60%, 07/01/01, Pre-refunded @ 102 450,000 465,240
Florida State Division of Bond Finance, Department of General Services,
Sales Tax RB, (Dept of Natural Resources-Preservation 2000), Series A,
6.40%, 07/01/01, Pre-refunded @ 102 1,000,000 1,033,100
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 35,000 36,168
Florida State Division of Bond Finance, Department of General Services,
Sales Tax RB, (Dept of Natural Resources-Preservation 2000), Series A,
4.50%, 07/01/01, MBIA Insured 150,000 150,090
Florida State Division of Bond Finance, Department of General Services,
Public Improv RB, (Dept of Natural Resources-Preservation 2000),
Series B, 5.00%, 07/01/01, FSA Insured 2,000,000 2,008,987
Florida Local Government Commission, Commercial Paper, (Florida Association
of Counties Pooled Program), 4.20%, 11/03/00, First Union National Bank,
LOC 2,915,000 2,915,000
Florida Local Government Commission, Commercial Paper, (Florida Pooled
Program), Series B, 4.25%, 11/08/00, First Union National Bank, LOC
2,000,000 2,000,000
Florida Municipal Power Agency, Commercial Paper, Pooled Loan Project, 4.10%,
11/06/00, First Union National Bank of NC, LOC 1,458,000 1,458,000
Fort Lauderdale, FL, GO Bonds, (Parking Improvement Project), 4.80%,
01/01/01 100,000 100,073
Gainesville, FL Utility System, Electric Util RB, CP Notes, Series C, 4.15%,
11/13/00, Bayerische Landesbank, LOC 1,400,000 1,400,000
Highlands County, FL School Board, Certificates of Participation, 4.20%,
03/01/01, MBIA Insured 285,000 285,000
Hillsborough County, FL, Public Improv RB, (City Center Project), Series B,
5.00%, 07/01/01, MBIA Insured 100,000 100,447
Indian River County, FL, Water & Sewer RB, 6.50%, 05/01/01, Pre-refunded@102
100,000 102,762
Jacksonville, FL, GO Bonds, (Commercial Paper Program), 4.10%, 11/10/00,
Morgan Guaranty, Bayerische Landesbank Girozentrale, SunBank, LOC
9,800,000 9,800,000
Jacksonville, FL, Commercial Paper, (Florida Power & Light), Series 1992,
4.20%, 11/01/00 2,800,000 2,800,000
Jacksonville, FL, Commercial Paper, (Florida Power & Light), Series 1992,
4.20%, 11/01/00 2,500,000 2,500,000
Lee County, FL Hospital Board of Directors, Hospital RB, (Lee Memorial
Hospital), 6.60%, 04/01/01, Pre-refunded @ 102 4,000,000 4,117,523
Lee County, FL Hospital Board of Directors, Hospital RB, (Lee Memorial
Hospital Project), Commercial Paper, 1995 Series A, 4.35%, 12/06/00,
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, 4.35%, 12/06/00, SunTrust
Bank, Central FL, LOC 1,800,000 1,800,000
Longboat Key, FL Beach Erosion Control District A, GO Bonds, 5.10%,
02/01/01, MBIA Insured 100,000 100,194
Orange County, FL, Commercial Paper, 4.15%, 12/04/00, NationsBank, N.A.,
Liquidity Facility 3,400,000 3,400,000
Orange County, FL School Board, Certificates of Participation, 5.00%,
08/01/01, AMBAC Insured 1,655,000 1,662,746
Orlando Utilities Commission, Water & Electric RB, (CP Program), Series 1999
A, 4.25%, 01/18/00, Morgan Guaranty Trust Company of New York, LOC
3,000,000 3,000,000
Palm Beach County, FL Health Facilities Auth, Hospital RB, (Pooled Hospital
Loan Project), Commercial Paper, 4.35%, 11/27/00, MBIA Insured, Credit
Suisse, SBPA 2,500,000 2,500,000
Palm Beach County, FL HFA, Housing RB, (Single Family Homeowner), Series A-2,
4.65%, 05/01/01, GNMA/FNMA Collateralized 1,225,000 1,225,000
Polk County, FL, Public Improv RB, 3.85%, 12/01/00, FSA Insured
200,000 199,895
Putnam County, FL Development Auth, Pollution Ctrl RB, (Seminole Electric
Cooperative, Inc.), Series D, 4.35%, 12/15/00, National Rural Utilities
Cooperative Finance Corporation, GTY, Mandatory Tender @ 100
500,000 500,000
Putnam County, FL Development Auth, Pollution Ctrl RB, (Seminole Electric
Cooperative, Inc.), Series H-3, 4.15%, 03/15/01, National Rural Utilities
Cooperative Finance Corporation, GTY, Mandatory Tender @ 100
1,000,000 1,000,000
St. Lucie County, FL, Public Improv RB, (800 MHZ Radio System Project),
Series A, 4.20%, 04/01/01, MBIA Insured q 150,000 150,000
St. Lucie County, FL School District, GO Bonds, Series A, 3.90%, 02/01/01,
FSA Insured 150,000 149,871
St. Lucie County, FL, Commercial Paper, (Florida Power & Light), 4.10%,
11/07/00 2,500,000 2,500,000
St. Lucie County, FL, Commercial Paper, (Florida Power & Light), 4.25%,
12/05/00 3,250,000 3,250,000
Sunshine State Governmental Financing Comm, Commercial Paper, 4.35%,
01/05/01, FGIC Insured, SBPA: Bank of Nova Scotia
4,539,000 4,539,000
Tampa - Hillsborough County, FL Expressway Auth, Transportation RB, 6.50%,
07/01/01, AMBAC Insured 500,000 500,000
West Palm Beach, FL, GO Bonds, 4.40%, 03/01/01 390,000 390,188
Other (Non-Florida) (10.9%)
Bergen County, NJ Utilities Auth, Water & Sewer RB, Series B, Zero Coupon,
12/15/00, Pre-refunded @ 45.055 150,000 67,215
Connecticut State Special Assessment Unemployment Compensation Advisors Fund,
Special Assessment RB, Series A, (Connecticut Unemployment), 5.50%, 11/15/00,
AMBAC Insured 250,000 250,093
Cook County, IL, GO Bonds, 7.05%, 11/01/00, MBIA Insured
250,000 250,000
Cook County, IL, GO Bonds, Series A, 5.90%, 11/15/00, MBIA Insured
200,000 200,122
Denver, CO City and County Airport, Transportation RB, Series B, 4.80%,
11/15/00, MBIA Insured 500,000 500,074
Florence County, SC, Hospital RB, (McLeod Regional Medical Center Project),
6.75%, 11/01/00, Pre-refunded @ 102 290,000 295,800
Georgia, State of, GO Bond, Series B, 6.70%, 11/01/00, Pre-refunded @ 102
1,000,000 1,020,000
Houston, TX, Water & Sewer RB, Prior Lien, 7.375%, 12/01/00,
Pre-refunded @ 102 500,000 511,232
Houston, TX, Water & Sewer RB, Prior Lien, 7.40%, 12/01/00,
Pre-refunded @ 102 700,000 715,680
Maine Municipal Bond Bank, GO Bonds, Series B, 5.30%, 11/01/00, AMBAC Insured
500,000 500,000
Michigan Municipal Bond Auth, IDB, (Local Government Loan Program),
Series A, 4.55%, 11/01/00, AMBAC Insured 250,000 250,000
Montgomery County, OH, Solid Waste RB, 5.00%, 11/01/00, MBIA Insured
1,000,000 1,000,000
Nassau County, NY, GO Bonds, Series P, 6.30%, 11/01/00, FGIC Insured
100,000 100,000
Neenah-Menasha, WI Sewer Commission, Bond Anticipation Notes, 5.75%,
12/01/00 175,000 175,125
Ohio State Public Facilities Commission, Public Improv RB, Series II-B,
5.375%, 11/01/00, AMBAC Insured 400,000 400,000
Pierce County, WA Public Transportation Benefit Area Corp, Public Improv RB,
(Limited Sales Tax), 5.80%, 12/01/00, FGIC Insured
250,000 250,308
Prince William County, VA, GO Bonds, Series A, 5.60%, 12/01/00
200,000 200,174
Prince William County, VA, GO Bonds, Series A, 6.10%, 12/01/00,
Pre-refunded @ 102 1,000,000 1,021,386
Providence, RI Public Building Auth, Public Improv RB, Series A, 6.90%,
12/15/00, Pre-refunded @ 102 200,000 204,597
St. Charles Parish, LA, Public Improv RB, Series ST-96, 4.50%, 12/01/00,
MBIA Insured 80,000 80,000
Shelby County, TN, GO Bonds, Series A, 6.25%, 12/01/00, Pre-refunded @ 102
100,000 102,144
Virgin Islands Water & Power Auth, Electric Util RB, Series A, 7.40%,
07/01/01, Pre-refunded @ 102 5,000,000 5,195,397
Washington State Health Care Auth, Hospital RB, (Empire Health Services
Spokane), 5.20%, 11/01/00, MBIA Insured 1,500,000 1,500,000
Will County, IL Community United School District No. 365, GO Bonds,
Series A, 5.25%, 11/01/00, FSA Insured 175,000 175,000
Wisconsin State Health & Educational Facilities Auth, Higher Education RB,
(Medical College Wisconsin, Inc. Project), 4.40%, 12/01/00, MBIA Insured
200,000 200,000
Total Municipal Bonds (Cost $94,102,427) $94,102,427
Total Investments (100%) (Cost $137,720,427) $137,720,427
Summary of Ratings (Unaudited):
AAA/Equivalent 98%, AA/Equivalent 2%
Average Portfolio Maturity: 66 Days
The Florida TaxFree Shortterm Fund
Statement of Investments
October 31, 2000 (Unaudited)
Variable Rate Demand Notes
Principal
Amount Value
Florida (1.6%)
St. Lucie County, FL, Solid Waste RB, (Florida Power & Light), Series 2000A,
4.70%, 01/15/27 500,000 500,000
Other (Non-Florida) (1.4%)
Los Angeles County, CA IDA, IDB, (Socransky Children's Fund), 4.90%,
12/01/05, Dai-Ichi Kangyo Bank Ltd., LOC 125,000 125,000
Los Angeles County, CA IDA, IDB, (353 Properties Ltd. Partnership), 4.90%,
12/01/05, Dai-Ichi Kangyo Bank Ltd., LOC 300,000 300,000
Total Variable Rate Demand Notes (Cost $925,000) $925,000
Municipal Bonds Principal
Amount Value
Florida (90.1%)
Altamonte Springs, FL Community Redevelopment Agency, Tax Increment RB,
5.50%, 04/01/02 $150,000 $152,043
Baker County, FL Hospital Auth, Hospital RB, Series 1998, 4.30%, 12/01/03,
ACA Insured 305,000 294,987
Baker County, FL Hospital Auth, Hospital RB, Series 1998, 4.40%, 12/01/04,
ACA Insured 320,000 307,894
Bay Medical Center, FL, Hospital RB, (Bay Medical Center Project), 4.70%,
10/01/02, AMBAC Insured 100,000 100,322
Brevard County, FL Solid Waste Management System, Solid Waste RB, 4.00%,
04/01/01, FSA Insured 100,000 99,785
Broward County, FL Airport System, Transportation RB, (Passenger Facility
Charge/Convertible Lien Bonds), Series 1998H-1, 4.50%, 10/01/04, AMBAC
Insured 300,000 298,821
Broward County, FL Educational Facilities Auth, Higher Education RB, (Nova
Southeastern University Project), 5.40%, 04/01/02, Connie Lee Insured
75,000 75,922
Broward County, FL Health Facilities Auth, Hospital RB, (North Beach
Hospital Project), 6.50%, 08/15/01, MBIA Insured
100,000 101,596
Broward County, FL, Public Improv RB, (Tourist Development Tax Special Rev -
Convention Center), Zero Coupon, 10/01/01, Escrowed to Maturity
450,000 432,311
Canaveral, FL, Transportation RB, 5.40%, 06/01/02, FGIC Insured
100,000 101,474
Celebration Community Development District, FL, Special Assessment RB,
Series B, 4.60%, 05/01/03, MBIA Insured 250,000 250,700
Clay County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
4.80%, 04/01/02, GNMA/FNMA Collateralized 115,000 115,384
Clay County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
4.50%, 04/01/03, GNMA/FNMA Collateralized 235,000 234,514
Clearwater, FL Housing Auth, Housing RB, (Hamptons Apartments), 8.25%,
05/01/04, Pre-refunded @ 103 600,000 677,034
Coral Springs, FL, GO Bonds, 4.25%, 04/01/01 50,000 49,991
Dade County, FL, GO Bonds, 5.25%, 11/01/04, FGIC Insured
50,000 51,247
Dade County, FL Aviation Auth, Transportation RB, Series X, 5.25%, 10/01/01
100,000 100,838
Dade County, FL, Guaranteed Entitlement Spl Assmt Bonds, Series B, Zero
Coupon, 02/01/01, MBIA Insured 250,000 247,315
Dade County, FL School Board, Certificates of Participation, 5.00%,
Series A, 05/01/01, Escrowed to Maturity 125,000 125,454
Dade County, FL School Board, Certificates of Participation, Series A, 5.50%,
05/01/04, Pre-refunded @ 101 430,000 447,725
Dade County, FL School Board, Certificates of Participation, Series B, 5.60%,
08/01/06, Pre-refunded @ 101 115,000 121,863
Dade County, FL School District, GO Bonds, 5.50%, 08/01/04, Pre-refunded@101
100,000 104,320
Dade County, FL, Public Improv RB, Special Obligation, (Courthouse Center
Project), 6.35%, 04/01/04, Pre-refunded @ 102 495,000 531,650
Escambia County, FL Health Facilities Auth, Hospital RB, (Azalea Trace, Inc.
Project), 5.25%, 01/01/03 300,000 292,173
Escambia County, FL Health Facilities Auth, Hospital RB, (Baptist Hospital &
Baptist Manor Project), 4.10%, 10/01/01 375,000 370,661
Escambia County, FL Health Facilities Auth, Hospital R B, (Baptist Hospital
& Baptist Manor Project), 4.20%, 10/01/02 165,000 160,035
Escambia County, FL Health Facilities Auth, Hospital RB, (Baptist Hospital &
Baptist Manor Project), 4.40%, 10/01/03 210,000 201,338
Escambia County, FL Health Facilities Auth, Hospital RB, (Charity Obligated
Group), Series C, 3.90%, 11/01/04 250,000 244,750
Escambia County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
Series A, 4.70%, 04/01/01, GNMA Collateralized
90,000 90,080
Escambia County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
Series A, 4.50%, 04/01/03, GNMA Collateralized 240,000 239,503
Escambia County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
4.10%, 04/01/04, GNMA Collateralized 145,000 141,437
Escambia County, FL School Board, Certificates of Participation, 6.25%,
02/01/02, Pre-refunded @ 100 45,000 46,016
Florida Development Finance Corporation, IRB, (FDFC Guaranty Program), 1997
Series B, 4.90%, 05/01/03, AMBAC Insured 40,000 40,252
Florida Gas Utility, Electric Util RB, (Gas Project No. 1), 5.00%, 12/01/03,
FSA Insured 250,000 249,215
Florida HFA, General Mortgage RB, Series A, 5.75%, 06/01/02, FHA Insured
45,000 45,900
Florida HFA, Housing RB, Single Family Mortgage RB, 1995 Series A, 5.70%,
01/01/01, GNMA Collateralized 70,000 70,130
Florida HFA, Rfdg Homeowner Mortgage & RB, Series 2, 5.20%, 01/01/02
220,000 221,586
Florida HFA, Housing RB, Series C, 4.90%, 08/01/01, FNMA Collateralized
150,000 150,426
Florida State, GO Bonds, (Pollution Ctrl), Series Y, 6.50%, 07/01/02,
Pre-refunded @ 101 175,000 182,555
Florida State, GO Bonds, (Pollution Ctrl), Series Y, 6.60%, 07/01/02,
Pre-refunded @ 101 135,000 141,041
Florida State, GO Bonds, (Jacksonville Transportation, Sr. Lien), 6.40%,
07/01/02, Pre-refunded @ 101 170,000 177,069
Florida State Department of Transportation, GO Bonds, (Right-of-Way
Acquisition and Bridge Construction), Series 1997A, 6.40%, 07/01/02
200,000 206,260
Florida State Board of Education, GO Bonds, Series C, 5.40%, 06/01/03
60,000 61,327
Florida State Board of Education, GO Bonds, Series A, 6.75%, 06/01/01,
Pre-refunded @ 101 175,000 179,170
Florida State Board of Education, GO Bonds, Series C, 6.50%, 06/01/02,
Pre-refunded @ 101 400,000 416,636
Florida State Board of Education, GO Bonds, Series C, 6.625%, 06/01/02,
Pre-refunded @ 101 100,000 104,347
Florida State Board of Education, GO Bonds, Series B, 6.00%, 06/01/02,
Pre-refunded @ 101 295,000 305,045
Florida State Board of Education, GO Bonds, Series B, 6.00%, 06/01/02,
Pre-refunded @ 101 85,000 87,901
Florida State Board of Education, GO Bonds, Series A, 6.50%, 06/01/03
300,000 314,586
Florida State Board of Education, GO Bonds, Series A, 5.00%, 06/01/04
200,000 203,198
Florida State Board of Regents, Certificates of Participation, State
University System, (FL Atlantic University Foundation, Inc.), 4.00%,
05/01/04, Asset Guaranty Insured 125,000 121,693
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 @ 102 100,000 103,550
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 @ 101 100,000 103,921
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 @ 101 175,000 181,862
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 500,000 518,195
Florida State Division of Bond Finance, Investment Fraud Restoration
Financing Corp, Miscellaneous RB, 3.85%, 05/01/04, MBIA Insured
250,000 242,353
Florida Municipal Power Agency, Electric Util RB, (St. Lucie Project), 5.00%,
10/01/01, FGIC Insured 100,000 100,617
Florida State Turnpike Auth, Transportation RB, Series A, 6.25%, 07/01/01,
Pre-refunded @ 100 45,000 45,577
Gulf Breeze, FL, Public Improv RB, (Local Government Loan Program), Series
1985B, 4.50%, 12/01/04, FGIC Insured, Mandatory Tender @ 100
590,000 589,681
Halifax Hospital Medical Center, FL, Hospital RB, (Halifax Management Systems),
Series A, 4.50%, 04/01/05, ACA Insured 240,000 231,898
Hernando County, FL School District, GO Bonds, 5.10%, 09/01/01, MBIA Insured
120,000 120,767
Hillsborough County, FL Aviation Auth, Transportation RB, (Tampa International
Arpt), Series A, 5.00%, 10/01/01, AMBAC Insured
250,000 251,320
Homestead, FL, Special Assessment RB, (Hurricane Andrew), 5.25%, 03/01/03,
Escrowed to Maturity 140,000 142,472
Indian Trace Community Development District, FL, Water Management-Special
Benefit Bonds, Series A, 5.10%, 05/01/01, MBIA Insured
250,000 250,995
Indian Trace Community Development District, FL, Water Management-Special
Benefit Bonds, Series A, 5.20%, 05/01/02, MBIA Insured
35,000 35,391
Inland Protection Financing Corp, FL, Solid Waste RB, (Special Obligation),
5.00%, 01/01/02, FSA Insured 300,000 301,932
Jacksonville Beach, FL, Electric Utility RB, 6.75%, 10/01/01,
Pre-refunded @ 102 115,000 119,751
Jacksonville, FL, Capital Improv RB, (Gator Bowl Project), 5.15%, 10/01/02,
AMBAC Insured 100,000 101,320
Jacksonville, FL, Capital Improv RB, (Gator Bowl Project), 6.00%, 10/01/04,
Pre-refunded @ 101 165,000 175,286
Jacksonville, FL Electric Auth, Electric Util RB, Series 3-A, 4.50%,
10/01/05 500,000 497,400
Jacksonville, FL, Excise Tax RB, 5.65%, 10/01/05, Escrowed to Maturity
280,000 292,530
Jacksonville, FL Health Facilities Auth, Hospital RB, 7.375%, 07/01/02,
Pre-refunded @ 100 50,000 52,305
Jacksonville, FL Health Facilities Auth, Hospital RB, (National Benevolent
Association-Cypress Village Project), Series 1996A, 5.00%, 12/01/00
125,000 125,005
Jacksonville, FL Health Facilities Auth, Hospital RB, (National Benevolent
Association-Cypress Village Project), Series 1996A, 5.20%, 12/01/01
130,000 129,995
Jacksonville, FL Health Facilities Auth, Hospital RB, (National Benevolent
Association-Cypress Village Florida Project), Series 2000A, 5.50%
03/01/02 120,000 120,875
Jacksonville, FL Health Facilities Auth, Hospital RB, (National Benevolent
Association-Cypress Village Florida Project), Series 2000A, 5.75%
03/01/03 125,000 127,081
Lakeland, FL, Hospital RB, (Lakeland Regional Medical Center), 4.20%,
11/15/02, MBIA Insured 90,000 89,161
Largo, FL, Hospital RB, (Sun Coast Health System), 5.75%, 03/01/01
285,000 284,558
Lee County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
Series A, Subseries 2, 5.25%, 03/01/02, GNMA Collateralized
40,000 40,354
Lee County, FL HFA, Single Family Mortgage RB, (Multi-County Program),
Series 1996A, Subseries 3, 5.10%, 03/01/01, GNMA Collateralized
35,000 35,068
Lee County, FL School Board, Certificates of Participation, Series A, 6.25%,
08/01/01, Pre-refunded @ 102 80,000 82,705
Lee County, FL School Board, Certificates of Participation, Series A, 4.85%,
08/01/03, FSA Insured 50,000 50,405
Lee County, FL School Board, Certificates of Participation, Series A, 5.50%,
08/01/03, Pre-refunded @ 102 230,000 240,295
Lee County, FL School Board, Certificates of Participation, Series A, 4.30%,
08/01/01, FSA Insured 50,000 49,997
Lee County, FL IDA, Water & Sewer RB, (Bonita Springs Utilities Project),
4.80%, 11/01/01, MBIA Insured 70,000 70,216
Lee County, FL IDA, Water & Sewer RB, (Bonita Springs Utilities Project),
4.75%, 11/01/04, FSA Insured 185,000 185,599
Lee County, FL IDA, Water & Sewer RB, (Bonita Springs Utilities Project),
4.75%, 11/01/05, FSA Insured 210,000 210,477
Lee County, FL, Public Improv RB, (Local Option Gas Tax Revenues), 4.70%,
10/01/03, FGIC Insured 100,000 100,590
Lee County, FL Solid Waste System, Solid Waste RB, Series A, 6.90%, 10/01/03,
MBIA Insured 100,000 103,869
Lee County, FL Solid Waste System, Solid Waste RB, Series A, 4.50%, 10/01/01,
MBIA Insured 95,000 95,081
Manatee County, FL HFA, Single Family Mortgage RB, Subseries 1, 5.375%,
05/01/02, GNMA Collateralized 35,000 35,413
Marion County, FL Hospital District, Hospital RB, (Munroe Regional Health
System), Series 1999, 4.375%, 10/01/02 250,000 245,528
Miami Beach, FL Health Facilities Auth, Hospital RB, (South Shore Hospital),
Series A, 4.30%, 08/01/03, ACA Insured 385,000 375,240
Miami Beach, FL Redevelopment Agcy, Tax Increm RB, (City Center/Historic
Conv Village), 4.90%, 12/01/01 50,000 49,972
Miami Beach, FL Redevelopment Agcy, Tax Increm RB, (Historic Conv Village),
Series B, 5.25%, 12/01/01 160,000 160,824
Miami-Dade County, FL, Special Obligation RB, Series C, Zero Coupon,
10/01/03, MBIA Insured 250,000 218,128
Miami-Dade County, FL Aviation Auth, Transportation RB, Series A, 4.20%,
10/01/03, FGIC Insured 250,000 246,093
Miami, FL Health Facilities Auth, Hospital RB, (Mercy Hospital), 6.45%,
08/01/01, AMBAC Insured 100,000 101,482
Miami, FL Health Facilities Auth, Hospital RB, (Mercy Hospital), 6.85%,
08/01/01, Pre-refunded @ 102 250,000 259,538
North Broward, FL Hospital District, Hospital RB, 6.50%, 01/01/02,
Pre-refunded @ 102 550,000 573,606
North Miami, FL Health Facilities Auth, Hospital RB, (Catholic Health
Services Obligation Group), 5.10%, 08/15/04, SunTrust Bank, Central
Florida, LOC 190,000 190,828
Orange County, FL Health Facilities Auth, Hospital RB, (Orlando Regional
Healthcare), Series A, 5.15%, 11/01/00, Escrowed to Maturity
50,000 50,000
Orange County, FL Health Facilities Auth, Hospital RB, (Orlando Regional
Healthcare), Series A, 5.15%, 11/01/00, MBIA Insured
25,000 25,000
Orange County, FL Health Facilities Auth, Hospital RB, (Adventist Health
System), 5.50%, 11/15/03 250,000 249,925
Orange County, FL HFA, Single Family Mortgage RB, Series A, 5.05%, 04/01/02,
GNMA/FNMA Collateralized 75,000 75,504
Orange County, FL HFA, Single Family Mortgage RB, Series A, 4.70%, 03/01/02,
GNMA/FNMA Collateralized 230,000 230,426
Orange County, FL, Public Improv RB, (Tourist Development Tax), Series B,
6.50%, 10/01/02, Pre-refunded @ 102 295,000 311,874
Osceola County, FL HFA, Multifamily Housing RB, (Tierra Vista Apartments
Project), Series A, 4.85%, 06/01/03, FSA Insured
60,000 60,243
Osceola County, FL, Sales Tax RB, 3.95%, 04/01/04, FSA Insured
150,000 146,087
Osceola County, FL School Board, Certificates of Participation, Series A,
(Four Corners Charter School), 4.25%, 08/01/01, MBIA Insured
180,000 179,876
Osceola County, FL School Board, Certificates of Participation, Series A,
(Four Corners Charter School), 5.00%, 08/01/05, MBIA Insured
215,000 218,621
Palm Beach County, FL Health Facilities Auth, Hospital RB, (The Waterford
Project), Series 1997, 5.00%, 10/01/03 150,000 146,156
Palm Beach County, FL Health Facilities Auth, Hospital RB, (Birch Corp
Obligated Group), Series A, 5.00%, 12/01/01 145,000 145,840
Palm Beach, FL HFA, Housing RB, (Lake Crystal Apts Project), 4.20%,
12/01/04, FHLMC Collateralized 130,000 128,891
Palm Beach County, FL, IDB, (The Henry Morrison Flagler Museum Project),
4.25%, 11/01/01, The Northern Trust Company, LOC, Mandatory Tender @ 100
1,000,000 1,000,000
Palm Beach County, FL School District, Certificates of Participation,
Series A, 5.50%, 08/01/01, AMBAC Insured 100,000 100,866
Pasco County, FL School Board, Certificates of Participation, Series A,
6.20%, 08/01/02, Escrowed to Maturity 250,000 257,625
Pasco County, FL, Solid Waste RB, 5.375%, 04/01/01, AMBAC Insured
250,000 250,903
Pinellas County, FL HFA, Single Family Mortgage RB, Series 1997C, 4.60%,
09/01/02, GNMA Collateralized 100,000 100,081
Pinellas County, FL Educational Facilities Auth, Higher Education RB,
(Eckerd College Issue), 6.25%, 08/01/02 50,000 50,677
Pinellas County, FL Educational Facilities Auth, Industrial Development RB,
(College Harbor Issue), Senior Lien, Series 1996A, 7.25%, 12/01/02
280,000 293,286
Pinellas County, FL Educational Facilities Auth, Industrial Development RB,
(College Harbor Issue), Junior Lien, Series 1996B, 5.40%, 12/01/00
60,000 60,043
Pinellas County, FL Educational Facilities Auth, Industrial Development RB,
(College Harbor Issue), Junior Lien, Series 1996B, 5.60%, 12/01/01
60,000 60,527
Pinellas County, FL Educational Facilities Auth, Industrial Development RB,
(College Harbor Issue), Junior Lien, Series 1996B, 5.70%, 12/01/02
65,000 66,115
Pinellas County, FL, Solid Waste RB, (Resource Recovery), 5.10%, 10/01/03,
MBIA Insured 250,000 252,478
Pinellas County, FL, Water & Sewer RB, 5.70%, 10/01/02, Pre-refunded @ 102
165,000 172,044
Plantation, FL, Water & Sewer RB, Zero Coupon, 03/01/03, MBIA Insured
135,000 121,053
Polk County, FL School Board, Certificates of Participation, (School
District Financing Program), 6.375%, 01/01/01, Pre-refunded @ 102
100,000 102,312
Port Everglades, FL Port Auth, Transportation RB, Series A, Zero Coupon,
09/01/01, FGIC Insured 60,000 57,816
Port of Palm Beach District, FL, Transportation RB, Series A, 4.60%,
09/01/05, MBIA Insured 500,000 497,420
Port St. Lucie, FL, Water & Sewer RB, Series 1996A, Zero Coupon, 09/01/01,
Escrowed to Maturity 150,000 144,633
St. Johns County, FL IDA, Hospital RB, (Flagler Hospital Project), 5.60%,
08/01/01 185,000 185,923
St. Lucie County, FL School Board, Certificates of Participation, 5.00%,
07/01/03, FSA Insured 55,000 55,638
St. Petersburg, FL Health Facilities Auth, Hospital RB, (All Children's
Hospital), Series A, 6.30%, 11/15/04, MBIA Insured
50,000 52,633
Sarasota County, FL Health Facilities Auth, Hospital RB, (Sunnyside
Properties Project), Series 1995, 5.50%, 05/15/01
174,000 173,833
Sarasota County, FL, Public Improv RB, (Infrastructure Sales Surtax Rev),
3.70%, 09/01/03, FSA Insured 125,000 121,200
Sarasota County, FL, Public Improv RB, (Infrastructure Sales Surtax Rev),
3.80%, 09/01/04, FSA Insured 125,000 120,535
Seminole County, FL School Board, Certificates of Participation, Series A,
6.125%, 07/01/04, Pre-refunded @ 102 185,000 198,303
Seminole, FL Water Control District, Spl Assmt Bonds, (Unit of Development
No. 2), Series 1996, 5.95%, 08/01/01 80,000 80,602
South Broward Hospital District, FL, Hospital RB, 5.05%, 05/01/04, AMBAC
Insured 100,000 101,405
South Lake County, FL Hospital District, Hospital RB, (South Lake Hospital,
Inc.), 4.625%, 10/01/04 65,000 63,101
Sunrise Lakes, FL, GO Bonds, (Phase 4 Recreation Dist), 4.125%, 08/01/04,
AMBAC Insured 100,000 98,284
Tallahassee, FL, Electric Util RB, Series A, 4.00%, 10/01/04, FSA Insured
100,000 97,339
Tallahassee, FL Health Facilities, Hospital RB, (Tallahassee Memorial
Regional Medical Center), Series B, 5.30%, 12/01/00, MBIA Insured
75,000 75,053
Tallahassee, FL Health Facilities, Hospital RB, (Tallahassee Memorial
Regional Medical Center), Series B, 5.625%, 12/01/03, MBIA Insured
200,000 205,928
Tallahassee, FL Municipal Airport, Airport Rfdg RB, 4.60%, 10/01/01, AMBAC
Insured 165,000 165,285
University of South Florida, University Rev Housing Facilities RB,
Series A, 7.00%, 07/01/02, MBIA Insured 185,000 192,548
Volusia County, FL Health Facilities Auth, Hospital RB, (John Knox Project),
Series A, 5.50%, 06/01/05, Asset Guaranty Insured
300,000 307,902
Volusia County, FL, Special Assessment RB, (Bethune Beach Wastewater Project),
6.60%, 07/01/01 95,000 95,447
West Orange, FL Healthcare District, Hospital RB, Series 1999A, 5.00%,
02/01/04 500,000 494,515
Winter Park, FL , GO Bonds, 4.55%, 07/01/01 50,000 50,079
Other (Non-Florida) (6.9%)
Berkeley County, WV Building Commission, Hospital RB, (City Hospital
Project), 5.90%, 11/01/00 250,000 250,000
Guam, Government of, GO Bonds, Series A, 4.90%, 11/15/04
500,000 503,000
Hawaii, State of, GO Bonds, Series CI, 4.00%, 11/01/00
250,000 250,000
Oconto County, WI, GO Bonds, (Promissory Notes), 4.40%, 12/01/00
100,000 99,996
Puerto Rico Electric Power Auth, Electric Util RB, Series X, 4.75%,
07/01/02, MBIA Insured 75,000 75,783
Puerto Rico Housing Bank and Finance Agency, Housing RB, (Commonwealth
Appropriations - Subsidy Prepayment), 4.75%, 12/01/00
240,000 240,098
Upper Arlington, OH City Schools, GO Bonds, 6.50%, 12/01/00
220,000 220,370
Virgin Islands Port Auth, Transportation RB, (Rohlsen Terminal), Series
1998A, 4.35%, 09/01/03 455,000 446,778
Total Municipal Bonds (Cost $29,834,298) $ 29,722,587
Total Investments (100%) (Cost $30,759,298) $ 30,647,587
Summary of Ratings (Unaudited): AAA/Equivalent 61%, AA/Equivalent 9%,
A/Equivalent 14%, BBB/Equivalent 10%, Other 6%
Average Portfolio Maturity: 2.18 Years
The Florida TaxFree Funds
Statements of Assets and Liabilities
October 31, 2000 (Unaudited)
Money Fund Shortterm Fund
ASSETS
Investments in securities, at value
(cost $137,720,427 and $30,759,298 respectively)
$137,720,427 $30,647,587
Cash 891,323 282,453
Receivables:
Interest 1,346,412 438,171
Fund shares sold 134,930 --
Total assets 140,093,092 31,368,211
LIABILITIES
Payable for investment securities purchased
1,054,611 --
Dividend payable 457,364 109,323
Funds advanced by manager 48,519 10,628
Total liabilities 1,560,494 119,951
NET ASSETS
Paid in capital 138,547,872 31,377,549
Net unrealized appreciation/(depreciation) of investments
-- (111,712)
Accumulated net realized loss (15,274) (17,577)
Net assets $138,532,598 $31,248,260
Number of shares outstanding 138,700,105 3,140,495
Net asset value, offering price and
redemption price per share $1.00 $9.95
The Florida TaxFree Funds
Statements of Operations
For the Six Months Ended October 31, 2000 (Unaudited)
Money Fund Shortterm Fund
INVESTMENT INCOME
Income:
Interest $2,810,208 $688,280
Expenses:
Investment advisory fee (Note 2) 348,334 97,257
Distribution and service fees (Note 2) 40,930 11,443
Custodian fees (Note 3) 16,747 7,026
Transfer agency fees and expenses
(Note 2) 56,298 6,555
Printing costs 6,782 553
Professional fees 12,313 6,988
Insurance 1,638 289
Registration and filing fees 9,373 10,883
Trustees' fees and expenses 5,228 923
Other expenses 13,343 2,478
Total expenses 510,986 144,395
Expense reimbursements and fee
reductions (Note 2) (220,430) (75,118)
Custodian fees paid indirectly (Note 3) (11,889) (4,438)
Net expenses 278,667 64,839
Net investment income $2,531,541 $623,441
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss)
on investments $247 $3,250
Unrealized appreciation (depreciation) on
investments -- 338,162
Net realized and unrealized gain (loss)
on investments -- 341,412
Increase in net assets from operations $2,531,788 $964,853
The Florida TaxFree Funds
Statements of Changes in Net Assets
MONEY FUND SHORTTERM FUND
Six Months Year Ended Six Months Year Ended
Ended 4/30/00 Ended 4/30/00
(Unaudited) (Unaudited)
10/31/00 10/31/00
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income
$2,531,541 $4,879,769 $623,441 $1,245,714
Net realized gain (loss) on Investments
247 (12,676) 3,250 (6,735)
Unrealized appreciation (depreciation) of Investments
-- -- 338,162 (777,160)
Increase in net assets from operations
2,531,788 4,867,093 964,853 461,819
Dividends to shareholders from:
Net investment income
(2,531,541) (4,879,7690) (623,441) (1,245,826)
Return of capital
-- (152,232) -- (39,015)
Fund share transactions (Note 4)
1,480,875 (23,194,009) (1,871,657) 4,245,594
Net increase (decrease) in net assets
1,481,122 (23,358,917) (1,530,245) 3,422,572
Net Assets:
Beginning of period
137,051,476 160,410,393 32,778,505 29,355,933
End of period
$138,532,598 $137,051,476 $31,248,260 $32,778,505
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, 2000 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 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
six-month period ended October 31, 2000, management fees totaled $348,334
and $97,257 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, 2000, fees under this agreement amounted
to $33,810 and $2,733 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.
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, 2000, the Money Fund paid $55
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, 2000, custodian fees were reduced
by earnings credits of $11,889 and $4,438 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
$138,547,872 and $31,377,549, respectively. Transactions in Fund shares for
the six-month period ended October 31, 2000 and the year ended
April 30, 2000 were as follows:
MONEY FUND* SHORTTERM FUND
SHARES AMOUNT
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
10/31/00 4/30/00 10/31/00 4/30/00 10/31/00 4/30/00
Sold
154,435,417 366,240,680 894,425 2,809,994 8,867,257 27,972,466
Issued on reinvested dividends
2,483,325 4,566,581 61,635 116,384 609,803 1,159,919
Redeemed
(155,437,867) (394,001,270)(1,145,066) (2,500,149) (11,348,717) (24,886,791)
Net increase (decrease)
1,480,875 (23,194,009) (189,066) 426,229 $(1,871,657) $4,245,594
* 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, 2000 were $2,839,855 and $3,706,894, respectively. At
October 31, 2000, the cost of securities for federal income tax purposes was
the same as that for financial reporting purposes. Net unrealized
depreciation, which amounted to $111,712 for the ShortTerm Fund, consisted
of aggregate gross unrealized appreciation and (depreciation) of $81,578 and
($193,290), respectively. As of October 31, 2000, the accumulated net
realized losses were $15,274 and $17,577 for the Money Fund and ShortTerm
Fund, respectively. For tax purposes, such losses are available to offset
future realized capital gains. The capital loss carryforwards expire
in varying amounts through 2008 for the Money Fund and the ShortTerm
Fund.
6. Financial Highlights
Money Fund
Six Months Year Year Year Year Year
Ended (Unaudited)Ended Ended Ended Ended Ended
10/31/00 4/30/00 4/30/99 4/30/98 4/30/97 4/30/96
Per share operating performance
(for a share outstanding throughout the period)
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
0.018 0.032 0.030 0.034 0.034 0.036
Less distributions:
Dividends from net investment
Income (0.018) (0.031) (0.030) (0.034) (0.034) (0.036)
Return of capital
-- (0.001) -- -- -- --
Net asset value, end of period
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total return*
3.71% 3.26% 3.02% 3.50% 3.42% 3.69%
Ratios/Supplemental Data
Net assets at end of period (000's)
$138,532 $137,051 $160,410 $149,361 $136,453 $113,943
Ratios to Average Daily Net Assets*
Expenses .40% .40% .39% .26% .20% .20%
Expenses (Before reimbursement)
.73% .70% .73% .73% .78% .80%
Net Investment Income
3.63% 3.11% 2.96% 3.43% 3.36% 3.62%
* Figures for six-months ended October 31, 2000 are annualized.
6. Financial Highlights (continued)
ShortTerm Fund
Six Months Year Year Year Year Year
Ended (Unaudited) Ended Ended Ended Ended Ended
10/31/00 4/30/00 4/30/99 4/30/98 4/30/97 4/30/96
Per share operating performance
(for a share outstanding throughout the period)
Net asset value, beginning of period
$9.84 $10.11 $10.05 $9.95 $9.94 $9.89
Income from investment operations:
Net Investment income
0.19 0.41 0.40 0.42 0.43 0.42
Net realized and unrealized gain (loss) on investments
0.12 (0.27) 0.06 0.10 0.01 0.05
Total from investment operations
0.31 0.14 0.46 0.52 0.44 0.47
Less distributions:
Dividends from net investment income
(0.20) (0.40) (0.40) (0.42) (0.43) (0.42)
Return of capital
-- (0.01) -- -- -- --
Net asset value, end of period
$9.95 $9.84 $10.11 $10.05 $9.95 $9.94
Total return*
4.35% 1.39% 4.71% 5.23% 4.59% 4.85%
Ratios/Supplemental Data
Net assets at end of period (000's)
$31,248 $32,779 $29,356 $22,953 $28,853 $12,344
Ratios to Average Daily Net Assets*
Expenses .40% .40% .39% .26% .20% .20%
Expenses (Before reimbursement)
.89% .91% .93% .93% 1.18% 1.42%
Net Investment Income
3.85% 3.97% 4.00% 4.20% 4.27% 4.25%
Portfolio turnover rate
9.84% 32.2% 25.6% 40.2% 40.9% 83.4%
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 31,2000 are annualized (except for
portfolio turnover rate).
