N-CSR 1 a2123844zn-csr.txt N-CSR UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number 811-03942 LORD ABBETT TAX-FREE INCOME FUND, INC. -------------------------------------- (Exact name of Registrant as specified in charter) 90 Hudson Street, Jersey City, NJ 07302 --------------------------------------- (Address of principal executive offices) (zip code) Christina T. Simmons, Vice President & Assistant Secretary 90 Hudson Street, Jersey City, NJ 07302 --------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (800) 201-6984 -------------- Date of fiscal year end: 9/30 ---- Date of reporting period: 9/30/03 ------- ITEM 1: Report to Shareholders. [LORD ABBETT LOGO] 2003 ANNUAL REPORT LORD ABBETT TAX-FREE INCOME FUND TAX-FREE INCOME TRUST NATIONAL TAX-FREE FUND CALIFORNIA TAX-FREE FUND CONNECTICUT TAX-FREE FUND HAWAII TAX-FREE FUND MINNESOTA TAX-FREE FUND MISSOURI TAX-FREE FUND NEW JERSEY TAX-FREE FUND NEW YORK TAX-FREE FUND TEXAS TAX-FREE FUND WASHINGTON TAX-FREE FUND INSURED INTERMEDIATE TAX-FREE FUND FLORIDA TAX-FREE TRUST GEORGIA TAX-FREE TRUST MICHIGAN TAX-FREE TRUST PENNSYLVANIA TAX-FREE TRUST FOR THE YEAR ENDED SEPTEMBER 30, 2003 -------------------------------------------------------------------------------- LORD ABBETT TAX-FREE INCOME FUND AND LORD ABBETT TAX-FREE INCOME TRUST ANNUAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003 DEAR SHAREHOLDERS: We are pleased to provide you with this twelve-month overview of the Fund's and Trust's strategies and performance for the fiscal year ended September 30, 2003. On this and the following pages, we discuss the major factors that influenced performance. Thank you for investing in Lord Abbett Mutual Funds. We value the trust that you place in us and look forward to serving your investment needs in the years to come. BEST REGARDS, /s/ Robert S. Dow ROBERT S. DOW CHAIRMAN -------------------------------------------------------------------------------- Q. WHAT WERE THE MOST SIGNIFICANT FACTORS AFFECTING PERFORMANCE? A. Both the Fund and the Trust benefited from portfolio structures designed to manage volatility. Contributing to performance were essential service revenue bonds, which outperformed tax-based general obligation bonds, as tax revenues declined in the economic slowdown. Insured bonds added to performance. Also adding to performance were pre-refunded bonds,(1) a sector of the municipal bond market that we feel is an important component of a defensive position over the long term. As long-term investment managers, our focus is consistent throughout the interest-rate cycle: we remain largely invested in the high-quality end of the municipal bond market. High-quality bonds tend to be less volatile and more liquid than lower-quality bonds. The portfolios' concentration in the high-quality market contributed to performance early in the year, as investors sought quality amid geopolitical uncertainty. Later in the year, positions in liquid, high-quality credits also enabled us to make strategic changes to take advantage of the opportunities created by increased market volatility. However, our lack of participation in the low-quality end of the market detracted from performance overall, as investors were attracted to the high yield offered in that segment of the market, boosting prices, especially in the second half of the year. Q. PLEASE DESCRIBE THE OVERALL MARKET CONDITIONS DURING THE REPORTING PERIOD. A. Geopolitical uncertainties surrounding the war with Iraq were the key drivers of financial markets in the first half of the fiscal year, generating a flight to quality on the part of investors. Fixed-income markets grew more volatile as the year progressed, reflecting mixed economic data and lack of clarity on the future direction of interest rates. 1 -------------------------------------------------------------------------------- Municipal bond markets also faced a mix of fundamental challenges, including budget shortfalls, as tax revenue fell in the sluggish economic environment. States seeking to take advantage of historically low borrowing costs helped to increase the volume of new issues. New issuances were not without credit-quality concerns in some areas. On the demand side, institutional buyers were attracted to the relative value of municipals compared with Treasuries. Retail buyers bought intermittently when yields were attractive but retreated just as quickly when yields fell. (1) Pre-refunded bonds are older, tax-free bonds that typically pay coupons higher than current market rates and that have been refinanced or "prepaid" by the proceeds of a second bond issue. The proceeds of this second issuance are used to "call" or pay off the original issue at its first call date. Until that time, the monies are held in escrow and are usually invested in U.S. Treasuries. As a result, pre-refunded bonds are generally deemed to have virtually no default risk. Typically, when a bond becomes pre-refunded, it appreciates in value because of its higher credit quality and improved marketability. IMPORTANT PERFORMANCE AND OTHER INFORMATION THE VIEWS OF THE FUND'S AND TRUST'S MANAGEMENT AND THE PORTFOLIO HOLDINGS DESCRIBED IN THIS REPORT ARE AS OF SEPTEMBER 30, 2003; THESE VIEWS AND HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THIS DATE AND THEY DO NOT GUARANTEE THE FUTURE PERFORMANCE OF THE MARKETS OR THE FUND/TRUST. INFORMATION PROVIDED IN THIS REPORT SHOULD NOT BE CONSIDERED A RECOMMENDATION TO PURCHASE OR SELL SECURITIES. A NOTE ABOUT RISK: See Notes to Financial Statements for a discussion of investment risks. For a more detailed discussion of the risks associated with the Fund/Trust, please see the Fund's/Trust's Prospectus. PERFORMANCE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. BECAUSE OF ONGOING MARKET VOLATILITY, FUND/TRUST PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL FLUCTUATION. The investment return and principal value of an investment in the Fund/Trust will fluctuate so that shares, on any given day or when redeemed, may be worth more or less than their original cost. The Fund/Trust offers additional classes of shares with distinct pricing options. For a full description of the differences in pricing alternatives, please see the Prospectus. The Fund's/Trust's portfolios are actively managed and, therefore, allocations are subject to change. MUTUAL FUNDS ARE NOT INSURED BY THE FDIC, ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR GUARANTEED BY BANKS AND ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED. For more complete information about this or any Lord Abbett Mutual Fund, including risks, charges and ongoing expenses, please call your Investment Professional or Lord Abbett Distributor LLC at 888-522-2388 for a Prospectus. An investor should read the Prospectus carefully before investing. 2 NATIONAL TAX-FREE FUND -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of General Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The performance of other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND (CLASS A SHARES) LEHMAN MUNICIPAL LIPPER AVERAGE OF (CLASS A SHARES) AT MAXIMUM LEHMAN MUNICIPAL LONG CURRENT GENERAL MUNICIPAL AT NET ASSET VALUE OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 1993 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 1994 $ 9,437 $ 9,130 $ 9,756 $ 9,275 $ 9,628 1995 $ 10,366 $ 10,029 $ 10,847 $ 10,040 $ 10,569 1996 $ 11,020 $ 10,662 $ 11,502 $ 10,730 $ 11,167 1997 $ 12,044 $ 11,653 $ 12,539 $ 11,694 $ 12,136 1998 $ 13,200 $ 12,771 $ 13,632 $ 12,879 $ 13,134 1999 $ 12,691 $ 12,279 $ 13,536 $ 12,436 $ 12,733 2000 $ 13,328 $ 12,895 $ 14,371 $ 13,051 $ 13,332 2001 $ 14,749 $ 14,270 $ 15,866 $ 14,338 $ 14,609 2002 $ 16,013 $ 15,493 $ 17,283 $ 15,605 $ 15,718 2003 $ 16,410 $ 15,877 $ 17,955 $ 15,970 $ 16,173
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS LIFE OF CLASS Class A(4) -0.81% 3.77% 4.73% -- Class B(5) -2.06% 3.66% -- 5.30% Class C(6) 1.80% 3.79% -- 5.40%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. (5) The Class B shares were first offered on 8/1/96. Performance reflects the deduction of a CDSC of 4% for 1 year, 1% for 5 years and 0% for the life of the Class. (6) The Class C shares were first offered on 7/15/96. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance is at net asset value. 3 CALIFORNIA TAX-FREE FUND -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of California Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The performance of the other class will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such class. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND LIPPER AVERAGE OF THE FUND (CLASS A SHARES) LEHMAN LEHMAN MUNICIPAL CALIFORNIA (CLASS A SHARES) AT MAXIMUM MUNICIPAL LONG CURRENT MUNICIPAL AT NET ASSET VALUE OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 1993 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 1994 $ 9,342 $ 9,038 $ 9,756 $ 9,275 $ 9,613 1995 $ 10,148 $ 9,818 $ 10,847 $ 10,040 $ 10,537 1996 $ 10,703 $ 10,355 $ 11,502 $ 10,730 $ 11,247 1997 $ 11,601 $ 11,224 $ 12,539 $ 11,694 $ 12,256 1998 $ 12,629 $ 12,219 $ 13,632 $ 12,879 $ 13,342 1999 $ 12,111 $ 11,718 $ 13,536 $ 12,436 $ 12,951 2000 $ 12,913 $ 12,494 $ 14,371 $ 13,051 $ 13,762 2001 $ 14,348 $ 13,882 $ 15,866 $ 14,338 $ 15,036 2002 $ 15,445 $ 14,943 $ 17,283 $ 15,605 $ 16,174 2003 $ 15,591 $ 15,084 $ 17,955 $ 15,970 $ 16,433
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS LIFE OF CLASS Class A(4) -2.38% 3.62% 4.19% -- Class C(5) 0.26% 3.65% -- 5.06%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. (5) The Class C shares were first offered on 7/15/96. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance is at net asset value. 4 CONNECTICUT TAX-FREE FUND -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of Connecticut Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND (CLASS A SHARES) LEHMAN MUNICIPAL LIPPER AVERAGE OF (CLASS A SHARES) AT MAXIMUM LEHMAN MUNICIPAL LONG CURRENT CONNECTICUT MUNICIPAL AT NET ASSET VALUE OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 1993 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 1994 $ 9,487 $ 9,179 $ 9,756 $ 9,275 $ 9,528 1995 $ 10,485 $ 10,144 $ 10,847 $ 10,040 $ 10,459 1996 $ 11,083 $ 10,722 $ 11,502 $ 10,730 $ 11,022 1997 $ 12,031 $ 11,640 $ 12,539 $ 11,694 $ 11,941 1998 $ 13,032 $ 12,609 $ 13,632 $ 12,879 $ 12,898 1999 $ 12,636 $ 12,226 $ 13,536 $ 12,436 $ 12,643 2000 $ 13,182 $ 12,754 $ 14,371 $ 13,051 $ 13,242 2001 $ 14,589 $ 14,114 $ 15,866 $ 14,338 $ 14,540 2002 $ 15,871 $ 15,355 $ 17,283 $ 15,605 $ 15,708 2003 $ 16,339 $ 15,808 $ 17,955 $ 15,970 $ 16,143
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS Class A(4) -0.40% 3.94% 4.68%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. 5 HAWAII TAX-FREE FUND -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of Hawaii Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND (CLASS A SHARES) LEHMAN MUNICIPAL LIPPER AVERAGE OF (CLASS A SHARES) AT MAXIMUM OFFERING LEHMAN MUNICIPAL LONG CURRENT HAWAII MUNICIPAL AT NET ASSET VALUE PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 1993 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 1994 $ 9,446 $ 9,139 $ 9,756 $ 9,275 $ 9,676 1995 $ 10,418 $ 10,079 $ 10,847 $ 10,040 $ 10,510 1996 $ 11,036 $ 10,677 $ 11,502 $ 10,730 $ 11,121 1997 $ 11,965 $ 11,576 $ 12,539 $ 11,694 $ 12,016 1998 $ 12,993 $ 12,571 $ 13,632 $ 12,879 $ 12,957 1999 $ 12,563 $ 12,154 $ 13,536 $ 12,436 $ 12,654 2000 $ 13,183 $ 12,755 $ 14,371 $ 13,051 $ 13,266 2001 $ 14,357 $ 13,890 $ 15,866 $ 14,338 $ 14,551 2002 $ 15,617 $ 15,110 $ 17,283 $ 15,605 $ 15,732 2003 $ 15,908 $ 15,391 $ 17,955 $ 15,970 $ 16,246
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS Class A(4) -1.37% 3.43% 4.40%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. 6 MINNESOTA TAX-FREE FUND -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of Minnesota Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND LEHMAN MUNICIPAL LIPPER AVERAGE (CLASS A SHARES) (CLASS A SHARES) LEHMAN MUNICIPAL LONG CURRENT OF MINNESOTA MUNICIPAL AT NET ASSET VALUE AT MAXIMUM OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 27-Dec-94 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 30-Sep-95 $ 11,023 $ 10,665 $ 11,280 $ 11,139 $ 11,073 30-Sep-96 $ 11,512 $ 11,138 $ 11,961 $ 11,905 $ 11,645 30-Sep-97 $ 12,545 $ 12,137 $ 13,040 $ 12,974 $ 12,563 30-Sep-98 $ 13,564 $ 13,123 $ 14,176 $ 14,289 $ 13,546 30-Sep-99 $ 13,195 $ 12,766 $ 14,077 $ 13,798 $ 13,248 30-Sep-00 $ 13,897 $ 13,445 $ 14,945 $ 14,480 $ 13,796 30-Sep-01 $ 15,367 $ 14,868 $ 16,500 $ 15,908 $ 15,040 30-Sep-02 $ 16,682 $ 16,140 $ 17,973 $ 17,314 $ 16,161 30-Sep-03 $ 17,278 $ 16,717 $ 18,672 $ 17,719 $ 16,701
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS LIFE OF FUND Class A(4) 0.27% 4.28% 6.04%
(1) Performance for each unmanaged index does not reflect any fees or expenses and is calculated from December 31, 1994. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. Calculated from December 31, 1994. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. The Class A share inception date is 12/27/94. 7 MISSOURI TAX-FREE FUND -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of Missouri Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND LEHMAN MUNICIPAL LIPPER AVERAGE OF (CLASS A SHARES) (CLASS A SHARES) AT LEHMAN MUNICIPAL LONG CURRENT MISSOURI MUNICIPAL AT NET ASSET VALUE MAXIMUM OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 30-Sep-93 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 30-Sep-94 $ 9,478 $ 9,170 $ 9,756 $ 9,275 $ 9,578 30-Sep-95 $ 10,445 $ 10,105 $ 10,847 $ 10,040 $ 10,565 30-Sep-96 $ 11,023 $ 10,665 $ 11,502 $ 10,730 $ 11,162 30-Sep-97 $ 11,930 $ 11,542 $ 12,539 $ 11,694 $ 12,087 30-Sep-98 $ 12,855 $ 12,437 $ 13,632 $ 12,879 $ 13,039 30-Sep-99 $ 12,566 $ 12,158 $ 13,536 $ 12,436 $ 12,716 30-Sep-00 $ 13,147 $ 12,719 $ 14,371 $ 13,051 $ 13,305 30-Sep-01 $ 14,610 $ 14,135 $ 15,866 $ 14,338 $ 14,634 30-Sep-02 $ 15,730 $ 15,219 $ 17,283 $ 15,605 $ 15,777 30-Sep-03 $ 16,231 $ 15,703 $ 17,955 $ 15,970 $ 16,247
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS Class A(4) -0.15% 4.08% 4.61%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. 8 NEW JERSEY TAX-FREE FUND -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of New Jersey Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND LEHMAN MUNICIPAL LIPPER AVERAGE OF (CLASS A SHARES) (CLASS A SHARES) AT LEHMAN MUNICIPAL LONG CURRENT MISSOURI MUNICIPAL AT NET ASSET VALUE MAXIMUM OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) September 30,1993 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 September 30,1994 $ 9,610 $ 9,298 $ 9,756 $ 9,275 $ 9,582 September 30,1995 $ 10,569 $ 10,226 $ 10,847 $ 10,040 $ 10,517 September 30,1996 $ 11,234 $ 10,869 $ 11,502 $ 10,730 $ 11,089 September 30,1997 $ 12,161 $ 11,765 $ 12,539 $ 11,694 $ 11,998 September 30,1998 $ 13,295 $ 12,863 $ 13,632 $ 12,879 $ 12,968 September 30,1999 $ 12,799 $ 12,383 $ 13,536 $ 12,436 $ 12,653 September 30,2000 $ 13,479 $ 13,041 $ 14,371 $ 13,051 $ 13,216 September 30,2001 $ 14,884 $ 14,400 $ 15,866 $ 14,338 $ 14,461 September 30,2002 $ 16,068 $ 15,546 $ 17,283 $ 15,605 $ 15,515 September 30,2003 $ 16,279 $ 15,750 $ 17,955 $ 15,970 $ 15,970
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS Class A(4) -1.97% 3.43% 4.64%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. 9 NEW YORK TAX-FREE FUND -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of New York Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The performance of the other class will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such class. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART
THE FUND THE FUND LEHMAN MUNICIPAL LIPPER AVERAGE OF (CLASS A SHARES) (CLASS A SHARES) AT LEHMAN MUNICIPAL LONG CURRENT MISSOURI MUNICIPAL AT NET ASSET VALUE MAXIMUM OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 30-Sep-93 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 30-Sep-94 $ 9,478 $ 9,170 $ 9,756 $ 9,275 $ 9,578 30-Sep-95 $ 10,445 $ 10,105 $ 10,847 $ 10,040 $ 10,565 30-Sep-96 $ 11,023 $ 10,665 $ 11,502 $ 10,730 $ 11,162 30-Sep-97 $ 11,930 $ 11,542 $ 12,539 $ 11,694 $ 12,087 30-Sep-98 $ 12,855 $ 12,437 $ 13,632 $ 12,879 $ 13,039 30-Sep-99 $ 12,566 $ 12,158 $ 13,536 $ 12,436 $ 12,716 30-Sep-00 $ 13,147 $ 12,719 $ 14,371 $ 13,051 $ 13,305 30-Sep-01 $ 14,610 $ 14,135 $ 15,866 $ 14,338 $ 14,634 30-Sep-02 $ 15,730 $ 15,219 $ 17,283 $ 15,605 $ 15,777 30-Sep-03 $ 16,231 $ 15,703 $ 17,955 $ 15,970 $ 16,247
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS LIFE OF CLASS Class A(4) -0.77% 4.35% 4.57% -- Class C(5) 1.88% 4.40% -- 5.53%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. (5) The Class C shares were first offered on 7/15/96. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance is at net asset value. 10 TEXAS TAX-FREE FUND -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of Texas Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND LEHMAN MUNICIPAL LIPPER AVERAGE OF (CLASS A SHARES) (CLASS A SHARES) AT LEHMAN MUNICIPAL LONG CURRENT MISSOURI MUNICIPAL AT NET ASSET VALUE MAXIMUM OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 30-Sep-93 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 30-Sep-94 $ 9,541 $ 9,231 $ 9,756 $ 9,275 $ 9,732 30-Sep-95 $ 10,604 $ 10,259 $ 10,847 $ 10,040 $ 10,778 30-Sep-96 $ 11,251 $ 10,885 $ 11,502 $ 10,730 $ 11,455 30-Sep-97 $ 12,291 $ 11,892 $ 12,539 $ 11,694 $ 12,452 30-Sep-98 $ 13,427 $ 12,991 $ 13,632 $ 12,879 $ 13,493 30-Sep-99 $ 12,761 $ 12,346 $ 13,536 $ 12,436 $ 13,015 30-Sep-00 $ 13,289 $ 12,858 $ 14,371 $ 13,051 $ 13,472 30-Sep-01 $ 14,792 $ 14,312 $ 15,866 $ 14,338 $ 14,764 30-Sep-02 $ 16,205 $ 15,678 $ 17,283 $ 15,605 $ 15,906 30-Sep-03 $ 16,743 $ 16,199 $ 17,955 $ 15,970 $ 16,455
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS Class A(4) -0.02% 3.83% 4.95%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25% (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. 11 WASHINGTON TAX-FREE FUND -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of Other State Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND (CLASS A SHARES) AT LEHMAN MUNICIPAL LIPPER AVERAGE OF (CLASS A SHARES) MAXIMUM OFFERING LEHMAN MUNICIPAL BOND LONG CURRENT OTHER STATE MUNICIPAL AT NET ASSET VALUE PRICE(2) INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 30-Sep-93 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 30-Sep-94 $ 9,435 $ 9,128 $ 9,756 $ 9,275 $ 9,694 30-Sep-95 $ 10,423 $ 10,084 $ 10,847 $ 10,040 $ 10,561 30-Sep-96 $ 11,132 $ 10,770 $ 11,502 $ 10,730 $ 11,169 30-Sep-97 $ 12,225 $ 11,827 $ 12,539 $ 11,694 $ 12,061 30-Sep-98 $ 13,384 $ 12,949 $ 13,632 $ 12,879 $ 13,000 30-Sep-99 $ 12,826 $ 12,409 $ 13,536 $ 12,436 $ 12,702 30-Sep-00 $ 13,454 $ 13,017 $ 14,371 $ 13,051 $ 13,288 30-Sep-01 $ 14,924 $ 14,439 $ 15,866 $ 14,338 $ 14,503 30-Sep-02 $ 16,224 $ 15,697 $ 17,283 $ 15,605 $ 15,566 30-Sep-03 $ 16,671 $ 16,129 $ 17,955 $ 15,970 $ 15,939
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS Class A(4) -0.61% 3.81% 4.90%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. 12 INSURED INTERMEDIATE TAX-FREE FUND -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of Insured Municipal Debt Funds and the Lehman 3-10 Year Insured Tax-Exempt Bond Index, assuming reinvestment of all dividends and distributions.(1) The performance of other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND LIPPER AVERAGE (CLASS A SHARES) (CLASS A SHARES) LEHMAN 3-10 YEAR OF INSURED AT NET ASSET VALUE AT MAXIMUM OFFERING PRICE(2) INSURED TAX-EXEMPT BOND INDEX(1) MUNICIPAL DEBT FUNDS(3) 30-Jun-03 $ 10,000 $ 9,675 $ 10,000 $ 10,000 31-Jul-03 $ 9,640 $ 9,327 $ 9,586 $ 9,696 31-Aug-03 $ 9,723 $ 9,407 $ 9,683 $ 9,774 30-Sep-03 $ 10,017 $ 9,691 $ 9,978 $ 10,055
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE PERIOD ENDED SEPTEMBER 30, 2003
LIFE OF CLASS Class A(4) -3.13% Class B(5) -4.94% Class C(6) -1.03% Class P(7) 0.11%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for period shown ended September 30, 2003 using the SEC required uniform method to compute total return. (5) The Class B shares were first offered on 6/30/03. Performance reflects the deduction of a CDSC of 5% for the life of the Class. (6) The Class C shares were first offered on 6/30/03. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. (7) The Class P shares were first offered on 6/30/03. Performance is at net asset value. 13 FLORIDA TAX-FREE TRUST -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of Florida Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The performance of the other class will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such class. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND (CLASS A SHARES) LEHMAN MUNICIPAL LIPPER AVERAGE (CLASS A SHARES) AT MAXIMUM LEHMAN MUNICIPAL LONG CURRENT OF FLORIDA MUNICIPAL AT NET ASSET VALUE OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 1993 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 1994 $ 9,406 $ 9,100 $ 9,756 $ 9,275 $ 9,549 1995 $ 10,338 $ 10,002 $ 10,847 $ 10,040 $ 10,573 1996 $ 10,851 $ 10,498 $ 11,502 $ 10,730 $ 11,181 1997 $ 11,676 $ 11,296 $ 12,539 $ 11,694 $ 12,085 1998 $ 12,632 $ 12,221 $ 13,632 $ 12,879 $ 13,083 1999 $ 12,172 $ 11,776 $ 13,536 $ 12,436 $ 12,713 2000 $ 12,687 $ 12,275 $ 14,371 $ 13,051 $ 13,314 2001 $ 14,043 $ 13,587 $ 15,866 $ 14,338 $ 14,587 2002 $ 15,181 $ 14,687 $ 17,283 $ 15,605 $ 15,661 2003 $ 15,578 $ 15,072 $ 17,955 $ 15,970 $ 16,095
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS LIFE OF CLASS Class A(4) -0.77% 3.59% 4.18% -- Class C(5) 1.97% 3.63% -- 4.83%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. (5) The Class C shares were first offered on 7/15/96. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance is at net asset value. 14 GEORGIA TAX-FREE TRUST -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of Georgia Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND (CLASS A SHARES) LEHMAN MUNICIPAL LIPPER AVERAGE (CLASS A SHARES) AT MAXIMUM LEHMAN MUNICIPAL LONG CURRENT OF GEORGIA AT NET ASSET VALUE OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) MUNICIPAL DEBT FUNDS(3) 27-Dec-94 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 30-Sep-95 $ 11,127 $ 10,765 $ 11,280 $ 11,139 $ 11,193 30-Sep-96 $ 11,944 $ 11,556 $ 11,961 $ 11,905 $ 11,858 30-Sep-97 $ 13,107 $ 12,681 $ 13,040 $ 12,974 $ 12,920 30-Sep-98 $ 14,475 $ 14,005 $ 14,176 $ 14,289 $ 14,007 30-Sep-99 $ 13,995 $ 13,540 $ 14,077 $ 13,798 $ 13,567 30-Sep-00 $ 14,932 $ 14,447 $ 14,945 $ 14,480 $ 14,270 30-Sep-01 $ 16,830 $ 16,283 $ 16,500 $ 15,908 $ 15,650 30-Sep-02 $ 18,391 $ 17,793 $ 17,973 $ 17,314 $ 16,896 30-Sep-03 $ 18,981 $ 18,364 $ 18,672 $ 17,719 $ 17,391
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS LIFE OF FUND Class A(4) -0.12% 4.89% 7.18%
(1) Performance for each unmanaged index does not reflect any fees or expenses and is calculated from December 31, 1994. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. Calculated from December 31, 1994. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. The Class A share inception date is 12/27/94. 15 MICHIGAN TAX-FREE TRUST -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of Michigan Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND (CLASS A SHARES) LEHMAN MUNICIPAL LIPPER AVERAGE (CLASS A SHARES) AT MAXIMUM LEHMAN MUNICIPAL LONG CURRENT OF MICHIGAN MUNICIPAL AT NET ASSET VALUE OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 30-Sep-93 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 30-Sep-94 $ 9,497 $ 9,188 $ 9,756 $ 9,275 $ 9,694 30-Sep-95 $ 10,550 $ 10,207 $ 10,847 $ 10,040 $ 10,661 30-Sep-96 $ 11,157 $ 10,794 $ 11,502 $ 10,730 $ 11,271 30-Sep-97 $ 12,152 $ 11,757 $ 12,539 $ 11,694 $ 12,194 30-Sep-98 $ 13,206 $ 12,776 $ 13,632 $ 12,879 $ 13,180 30-Sep-99 $ 12,823 $ 12,406 $ 13,536 $ 12,436 $ 12,848 30-Sep-00 $ 13,625 $ 13,183 $ 14,371 $ 13,051 $ 13,469 30-Sep-01 $ 15,290 $ 14,793 $ 15,866 $ 14,338 $ 14,769 30-Sep-02 $ 16,754 $ 16,209 $ 17,283 $ 15,605 $ 15,924 30-Sep-03 $ 17,283 $ 16,721 $ 17,955 $ 15,970 $ 16,378
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS Class A(4) -0.15% 4.82% 5.27%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. Calculated from November 30, 1992. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. 16 PENNSYLVANIA TAX-FREE TRUST -------------------------------------------------------------------------------- INVESTMENT COMPARISON Below is a comparison of a $10,000 investment in Class A shares to the same investment in Lipper's Average of Pennsylvania Municipal Debt Funds, the Lehman Municipal Bond Index and the Lehman Municipal Long Current Coupon Index, assuming reinvestment of all dividends and distributions.(1) The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [CHART]
THE FUND THE FUND LEHMAN MUNICIPAL LIPPER AVERAGE OF (CLASS A SHARES) (CLASS A SHARES) LEHMAN MUNICIPAL LONG CURRENT PENNSYLVANIA MUNICIPAL AT NET ASSET VALUE AT MAXIMUM OFFERING PRICE(2) BOND INDEX(1) COUPON INDEX(1) DEBT FUNDS(3) 30-Sep-93 $ 10,000 $ 9,675 $ 10,000 $ 10,000 $ 10,000 30-Sep-94 $ 9,485 $ 9,177 $ 9,756 $ 9,275 $ 9,636 30-Sep-95 $ 10,487 $ 10,146 $ 10,847 $ 10,040 $ 10,568 30-Sep-96 $ 11,105 $ 10,744 $ 11,502 $ 10,730 $ 11,187 30-Sep-97 $ 12,087 $ 11,694 $ 12,539 $ 11,694 $ 12,119 30-Sep-98 $ 13,198 $ 12,769 $ 13,632 $ 12,879 $ 13,069 30-Sep-99 $ 12,816 $ 12,400 $ 13,536 $ 12,436 $ 12,702 30-Sep-00 $ 13,473 $ 13,035 $ 14,371 $ 13,051 $ 13,258 30-Sep-01 $ 14,964 $ 14,478 $ 15,866 $ 14,338 $ 14,522 30-Sep-02 $ 16,246 $ 15,718 $ 17,283 $ 15,605 $ 15,640 30-Sep-03 $ 16,656 $ 16,115 $ 17,955 $ 15,970 $ 16,114
FISCAL YEAR-END 9/30 AVERAGE ANNUAL TOTAL RETURNS AT MAXIMUM APPLICABLE SALES CHARGE FOR THE YEAR ENDED SEPTEMBER 30, 2003
1 YEAR 5 YEARS 10 YEARS Class A(4) -0.81% 4.07% 4.89%
(1) Performance for each unmanaged index does not reflect any fees or expenses. The performance of the indices is not necessarily representative of the Fund's performance. Each index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. (2) Reflects the deduction of the maximum initial sales charge of 3.25%. (3) Source: Lipper, Inc. (4) This shows total return which is the percent change in value, after deduction of the maximum initial sales charge of 3.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2003 using the SEC required uniform method to compute total return. 17 SCHEDULE OF INVESTMENTS NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS 97.86% EDUCATION 16.45% CA Ed Fac Auth Rev Ref Pepperdine Univ Ser A(10) 5.00% 9/1/2033 AAA $ 10,000 $ 10,085,400 CA Ed Fac Auth Rev USC 5.00% 10/1/2033 AA+ 10,000 10,097,900 Delaware St Econ Dev Auth Rev DE Tech Pk Univ De Proj(2) 6.00% 2/1/2021 AAA 900 1,030,590 District of Columbia Rev James F Oyster Elem Sch Pilot(1) 6.25% 11/1/2021 A 450 494,802 Forest Hills MI Pub Schs(10) 5.25% 5/1/2020 Aaa 3,200 3,442,656 Glendale AZ Ind Dev Auth Midwestern Univ Ser A 5.75% 5/15/2021 BBB+ 1,000 1,074,200 Glendale AZ Ind Dev Auth Midwestern Univ Ser A 5.875% 5/15/2031 BBB+ 1,000 1,040,700 IA Higher Ed Ln Auth Rev Prv Clg Fac Central College Pj(16) 5.45% 10/1/2026 AA 250 258,337 IA Higher Ed Ln Auth Rev Warthburg College(1) 5.50% 10/1/2033 A 1,500 1,564,830 Indiana St Ed Fac Auth Rev 6.65% 3/1/2019 Aaa 10,740 11,191,510 Louisiana St Univ & Agric & Mech Clg Hlth Sciences Ctr Pj(15) 6.375% 5/1/2031 AAA 2,290 2,649,599 MA St Dev Fin Agy Rev Boston Univ Ser P 5.375% 5/15/2039 A3 1,000 999,150 MA St Dev Fin Agy Rev Boston Univ Ser P 6.00% 5/15/2059 A3 1,000 1,092,490 Maricopa Cnty AZ Sch Dist #69 Paradise VY Ref-Second Ser(10) 5.00% 7/1/2013 AAA 2,150 2,404,797 Massachusetts St Hlth & Ed Facs Auth Rev Boston College(15)(14) 5.125% 6/1/2033 AAA 3,810 3,886,848 NC Cap Facs Fin Agy Rev RITES-PA-1149 RIBs 9.129% 7/1/2042 AA+ 6,950 7,402,584 New York St Dorm Auth Rev Fashion Inst Tech(11) 5.50% 7/1/2030 AAA 400 431,792 Ohio St Higher Edl Fac Rev Commn Oberlin College Proj 5.00% 10/1/2033 AA 5,000 5,043,050 Oregon St Hlth Hsg Ed & Cul Fac Auth Reed Clg Pj Ser A 5.75% 7/1/2032 AA- 3,800 4,159,556 Rhode Island St Hlth & Ed Bldg Corp Rev Hgh Ed Fac Brown Univ 6.00% 9/1/2025 AA+ 7,070 7,751,972
SEE NOTES TO FINANCIAL STATEMENTS. 18 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ TN St Sch Brd Auth Higher Ed Fac Ser A(11) 5.125% 5/1/2021 AAA $ 615 $ 648,800 TN St Sch Brd Auth Higher Ed Fac Ser A 5.625% 5/1/2030 AA- 150 158,985 Tulsa OK Ind Auth Rev Ser A(15) 5.375% 10/1/2020 Aaa 3,170 3,407,623 Univ Central AR Rev Hsg Sys(11) 6.50% 1/1/2031 AAA 2,425 2,832,958 Univ VT & St Agric College Univ VT(2) 5.125% 10/1/2037 AAA 1,150 1,178,727 University NC Sys Pool Rev Ser A(2) 5.00% 4/1/2027 AAA 1,900 1,941,420 University VA Univ Rev Gen-Ser B 5.00% 6/1/2033 AAA 5,000 5,095,650 University VA Univ Rev Residuals Ser 856 RIBs(d) 8.68% 6/1/2019 Aaa 1,925 2,173,594 University VA Univ Rev Residuals Ser 856 RIBs(d) 8.68% 6/1/2020 Aaa 2,022 2,250,759 University VA Univ Rev Residuals Ser 856 RIBs(d) 8.68% 6/1/2021 Aaa 2,122 2,327,788 West Virginia Univ Rev Univ Sys WV Pj Ser A(2) Zero Coupon 4/1/2024 AAA 2,880 1,007,712 West Virginia Univ Rev Univ Sys WV Pj Ser A(2) Zero Coupon 4/1/2026 AAA 800 247,184 ------------- TOTAL 99,373,963 ------------- GENERAL OBLIGATION 17.20% Akron OH Impt 5.80% 11/1/2020 AA- 575 651,699 Athens OH City Sch Dist Fac Constr & Impt(11) 6.00% 12/1/2024 AAA 500 577,975 Bessemer AL School(2) 5.60% 2/1/2030 Aaa 2,000 2,142,640 Bremerton WA(2) 5.25% 12/1/2027 Aaa 1,000 1,032,970 California St Drivers-Ser 352 RIBs 9.288% 2/1/2030 AAA 2,000 2,086,280 Canton OH Sch Dist Ser A(15) 5.625% 12/1/2023 AAA 2,900 3,188,869 Cassia & Twin Falls Cntys Idaho Jt Sch Dist No 151 Ref(10) 5.50% 8/1/2012 Aaa 950 1,088,158 Chesapeake VA Wtr & Swr-Ser B(10) 5.00% 6/1/2033 AAA 1,000 1,014,480 Clear Creek CO Sch Dist # Re I Ref(11) 5.00% 12/1/2019 AAA 650 691,717 Dallas TX 5.75% 2/15/2020 AAA 1,615 1,800,224 Delaware Valley PA Regl Fin Auth Loc Govt Rev Ser C(2) 7.75% 7/1/2027 AAA 1,000 1,383,120 Fairfield OH City Sch Dist Ref Sch Impt(10) 5.375% 12/1/2020 AAA 1,410 1,525,409
SEE NOTES TO FINANCIAL STATEMENTS. 19 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Florida St Brd Ed Ref Cap Outlay Ser A(15) 5.00% 6/1/2013 AAA $ 2,500 $ 2,789,825 Foothill De Anza CA Cmnty College Dist Cap Apprec(15) Zero Coupon 8/1/2030 AAA 4,505 1,059,080 Georgetown Cnty SC Sch Dist(11) 5.25% 3/1/2020 AAA 2,485 2,651,247 Hawaii St Ref Ser DB(15) 5.25% 9/1/2013 AAA 3,400 3,870,118 Jefferson Cnty AL Sch(11) 5.50% 2/15/2020 AAA 1,000 1,091,740 Lake Orion MI Cmnty Sch Dist Ser B 5.25% 5/1/2025 AAA 4,900 5,107,074 Linn Cnty OR Sch Dist #55 Sweet Home(11) 5.50% 6/15/2020 AAA 1,000 1,096,420 Linn Cnty OR Sch Dist #55 Sweet Home(11) 5.50% 6/15/2025 AAA 2,245 2,415,283 Los Angeles Calif Uni Sch Dist Ser A(15) 5.00% 1/1/2028 AAA 5,000 5,072,850 Marion OH City Sch Dist Sch Fac Constr & Impt(11) 5.625% 12/1/2022 AAA 500 555,215 New Jersey St Var Purp Ref-Ser J(15)(14) 5.00% 7/15/2009 AAA 6,400 7,237,952 New York NY Ser A 6.00% 5/15/2030 A 2,175 2,365,573 Omaha NE Ser B 5.25% 12/1/2025 AAA 11,900 11,941,769 Oregon St Alternate Energy Pj Ser A AMT 5.00% 1/1/2015 AA 1,415 1,496,348 Oregon St Alternate Energy Pj Ser A AMT 5.05% 1/1/2016 AA 1,795 1,893,689 Oregon St Alternate Energy Pj Ser A AMT 5.10% 1/1/2017 AA 980 1,029,539 Paw Paw MI Pub Sch Dist Sch Bldg & Site 6.00% 5/1/2030 AAA 550 620,164 Philadelphia PA Sch Dist Ser A(11) 5.75% 2/1/2030 AAA 1,200 1,316,196 Powell Ohio(10) 5.50% 12/1/2032 AAA 1,280 1,358,362 Richland Cnty SC 5.375% 3/1/2030 Aa1 1,140 1,211,307 Richland Cnty SC 5.375% 3/1/2031 Aa1 1,195 1,268,803 Richland Cnty SC 5.375% 3/1/2032 Aa1 1,255 1,330,538 Richland Cnty SC 5.375% 3/1/2033 Aa1 1,320 1,398,408 Richmond VA(11) 5.50% 1/15/2018 AAA 500 559,100 South Wash Cnty MN Indpt Sch Dist #833 Ser A(15) 5.50% 2/1/2018 AAA 5,065 5,586,898 South Wash Cnty MN Indpt Sch Dist #833 Ser A(15) 5.50% 2/1/2019 AAA 2,990 3,280,389 Sunman Dearborn IN Inter Sch Bldg Corp First Mtg(10) 5.00% 1/15/2021 AAA 1,105 1,149,753
SEE NOTES TO FINANCIAL STATEMENTS. 20 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Teays Valley OH Loc Sch Dist Sch Fac Constr 2 Impt(10) 5.375% 12/1/2020 Aaa $ 500 $ 536,620 Tennessee St Ser A(11) 5.00% 8/1/2009 AAA 2,465 2,789,616 Texas St Wtr Dev Brd 7.15% 8/1/2035 Aa1 1,915 2,000,696 Washtenaw Cnty MI Multi Lake San Sew Sys Sylvan Twp Wtr(15) 4.75% 5/1/2021 AAA 700 715,071 Weber Cnty UT Sch Dist Ser B 5.00% 6/15/2021 Aaa 1,485 1,539,618 West Virginia St Pub Svc of Pj(15) 5.75% 6/1/2025 AAA 1,800 1,980,792 West Virginia St Ser D(10) 6.50% 11/1/2026 AAA 2,000 2,385,720 Weston CT 5.00% 8/1/2023 Aaa 420 433,234 Whitehall MI Dist Sch 5.50% 5/1/2019 AAA 1,400 1,548,778 Wood Cnty OH Pub Libr Impt(15) 5.875% 12/1/2022 Aaa 1,000 1,140,100 Wyandotte Cnty KS Sch 204 Bonner Springs Ser A(11) 5.60% 9/1/2020 Aaa 855 944,459 ------------- TOTAL 103,951,885 ------------- HEALTHCARE 12.75% Abag Fin Auth for Nonprofit Corp CA Ctfs Partn Woods Oblig(1) 6.20% 11/1/2029 A 1,000 1,083,790 AZ Hlth Fac Auth Rev AZ Hlthcare Pooled Fin-C(10) 5.50% 6/1/2014 AAA 1,130 1,302,404 Cape Girardeau Cnty MO Ind Dev Auth Health Care Facs Rev 5.75% 6/1/2032 A-(c) 500 510,550 Clackamas Cnty OR Hosp Fac Legacy Hlth Sys(15)(14) 5.00% 2/15/2015 AAA 1,600 1,739,280 Clackamas Cnty OR Hosp Fac Legacy Hlth Sys(15)(14) 5.00% 2/15/2016 AAA 1,000 1,078,210 Colorado Hlth Fac Auth Rev Catholic Hlth 5.25% 9/1/2024 AA 5,065 5,226,776 Colorado Hlth Fac Auth Rev Portercare Adventis Hlth 6.625% 11/15/2026 A 2,000 2,179,000 Erie Cnty Ohio Hosp Facs Rev Firelands Regl Med Ctr Ser A 5.50% 8/15/2022 A 1,000 1,025,190 Fargo ND Health Sys Rev Meritcare Obligated Group A(15) 5.375% 6/1/2027 AAA 1,000 1,030,640 Fargo ND Health Sys Rev Meritcare Obligated Ser A(2) 5.125% 6/1/2027 AAA 2,905 2,940,267 Harris Cnty TX Hlth Fac Mem Hermann Hlthcare Ser A 6.375% 6/1/2029 A 1,750 1,874,145 Highlands Cnty FL Fac Auth Rev Hosp Adventist Health Sys D(d) 5.875% 11/15/2029 A 5,500 5,762,405
SEE NOTES TO FINANCIAL STATEMENTS. 21 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Highlands Cnty FL Fac Auth Rev Hosp Adventist/Sunbelt Ser A 6.00% 11/15/2031 A $ 2,750 $ 2,906,502 Jackson OH Hosp Fac Rev Cons Hlth Sys Jackson Hosp(16) 6.125% 10/1/2023 AA 680 746,082 Kentucky Economic Dev Fin Auth Norton Hlthcare Inc Ser A(15) Zero Coupon 10/1/2025 AAA 4,300 1,349,211 Knox Cnty TN Health Edl & Hsg Facs Brd Hosp Facs Rev Ref(11) Zero Coupon 1/1/2023 AAA 2,735 928,615 KS St Dev-Susan-Ser Z-Ks Susan B Allen Mem Hosp(16) 5.125% 12/15/2023 AA 1,025 1,047,171 Lauderdale Cnty & Florence AL Hlthcare Rev Coffee Hlth Ser A(15) 6.00% 7/1/2029 AAA 1,000 1,133,080 Louisiana Pub Facs Auth Rev Ochsner Clinic Ser A(15) 5.00% 5/15/2022 Aaa 1,000 1,032,320 Lubbock TX Hlth Fac Dev Corp Rev Sears Plains Pj(12) 5.70% 1/20/2041 AAA 2,490 2,618,882 MD St Hlth & Higher Ed Fac Auth Rev North Arundel Hosp 6.50% 7/1/2026 Baa1 1,000 1,084,880 MD St Hlth & Higher Ed Fac Catholic Hlth Initiative Ser A 6.00% 12/1/2024 AA 100 110,686 MD St Hlth & Higher Ed Fac Johns Hopkins 5.00% 11/15/2028 AA- 3,500 3,524,675 MD St Hlth & Higher Ed Fac Univ Maryland Med Sys 6.75% 7/1/2030 Baa1 1,950 2,168,946 Mesa AZ Ind Dev Auth Discovery Hlth Sys Ser A(15) 5.75% 1/1/2025 AAA 750 814,267 Mississippi Hosp Equip & Fac Forrest Cnty Auth Gen Hosp Pj(11) 6.00% 1/1/2030 Aaa 615 694,612 Missouri St Hlth & Ed Fac Auth BJC Hlth 5.25% 5/15/2032 AA 2,000 2,057,700 Missouri St Hlth & Ed Fac Auth Rites PA-1049 RIBs(2) 16.885% 6/1/2010 AAA 855 1,063,603 New Hampshire Hlth & Ed Fac Auth Rev 6.00% 10/1/2024 A+ 250 263,597 New Hampshire Hlth & Ed Fac Dartmouth-Hitchcock Oblig Gr(11) 5.50% 8/1/2027 AAA 3,500 3,736,670 New Hampshire Hlth & Ed Fac Exeter Pj 5.75% 10/1/2031 A+ 1,550 1,602,359 New Hampshire St Hlth & Ed Concord Hosp(11) 5.50% 10/1/2021 Aaa 710 773,183 NJ Hlthcare Fac Fin Auth Rev Robert Wood Johnson Univ Hosp 5.75% 7/1/2031 A+ 700 740,761
SEE NOTES TO FINANCIAL STATEMENTS. 22 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ NM St Hosp Equip Ln Council Presbyterian Hlthcare Ser A 5.50% 8/1/2025 A+ $ 2,000 $ 2,061,880 North Carolina Med Care Comm 5.50% 1/1/2020 A 565 587,719 Orange Cnty FL Hlth Fac Auth Rev Hosp Orlando Regl 5.75% 12/1/2027 A2 1,000 1,030,780 Oregon St Hlth Hsg Ed & Cultural Fac Auth Rev(2) 5.25% 11/15/2019 AAA 2,000 2,171,740 Plymouth MN Hlth Fac Rev West Hlth Pj Ser A(11) 6.125% 6/1/2024 AAA 2,990 3,134,238 Rhode Island St Hlth & Ed Bldg RI Health 6.50% 8/15/2032 BBB 1,000 1,023,550 Rhode Island St Hlth & Ed Bldg Roger Williams Rlty(8) 6.50% 8/1/2029 AAA 1,240 1,359,127 South Carolina Jobs Economic Dev Auth Hosp Facs Rev 6.375% 8/1/2034 BBB 2,000 2,023,780 St. Cloud MN Hlthcare Rev Hosp Oblig Group Ser A(11) 6.25% 5/1/2018 Aaa 3,320 3,908,603 Sullivan Cnty TN Hlth Ed & Hsg Fac Brd Rev Hosp 6.25% 9/1/2022 BBB+ 2,000 2,065,480 Tyler TX Hlth Fac Dev Corp Hosp Rev Mother Frances Hosp 6.00% 7/1/2027 Baa1 1,500 1,540,890 ------------- TOTAL 77,058,246 ------------- HOUSING 5.90% Colorado Hsg Fin Auth Multi Fam Hsg Ser A AMT 6.80% 10/1/2037 AA+ 2,325 2,428,765 GA St Hsg & Fin Auth Rev Sing Fam Mtg Ser A Sub A-2 AMT(8) 6.40% 12/1/2015 AAA 105 105,250 Idaho Hsg & Fin Assn SF Mtg AMT 5.25% 7/1/2033 Aaa 1,000 1,020,860 Idaho Hsg Agy Sing Fam Mtg Ser F AMT(8) 7.45% 7/1/2015 Aaa 315 325,480 Illinois Hsg Dev Auth Multi Fam Hsg Lawndale AMT(8) 6.80% 12/1/2016 AAA 1,000 1,062,600 Illinois Hsg Dev Auth Multi Fam Hsg Lawndale AMT(8) 7.10% 12/1/2034 AAA 1,500 1,591,545 Kansas City MO Ind Dev Auth N Oak Crossing Sr Ser A-1 AMT(2) 5.30% 12/1/2020 AAA 1,170 1,204,257 Kentucky Hsg Corp Hsg Rev Ser D AMT 5.25% 7/1/2022 AAA 500 517,195 MA St Hsg Fin Agy Hsg Rev Rental Mtg Ser A AMT(2)(8) 7.35% 1/1/2035 AAA 1,375 1,435,995
SEE NOTES TO FINANCIAL STATEMENTS. 23 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ MA St Hsg Fin Agy Hsg Rev Sing Fam Ser 29 AMT 6.75% 6/1/2026 AA $ 685 $ 704,536 Maryland St Cmnty Dev Admin Dept Hsg & Cmnty Dev Ser B AMT 5.375% 9/1/2022 Aa2 4,160 4,279,392 Maryland St Cmnty Dev Admin Residential Ser F AMT 5.50% 9/1/2022 Aa2 2,500 2,588,700 Minneapolis & St. Paul MN Hsg Redev Auth Hlthcare Sys Pj 6.90% 10/15/2022 BBB+ 700 711,081 Minneapolis St Paul MN Hsg Fin Rev Sing Fam Mtg Ser AB AMT(13) 6.25% 11/1/2030 AAA 720 770,357 Minnesota St Hsg Fin Agy Sing Fam Mtg Ser G-1 AMT 5.60% 7/1/2022 AA+ 470 489,820 MO St Hsg Dev Cmnty Mtg Rev Sing Fam Hmownr Ln Ser B-1 AMT(13) 6.25% 3/1/2031 AAA 425 443,632 MO St Hsg Dev Cmnty Mtg Rev Sing Fam Ser E-1 AMT(13) Zero Coupon 3/1/2029 AAA 1,075 258,365 Montana St Brd Hsg Sing Fam Mtg Ser A-1(8) 6.05% 12/1/2037 AA+ 4,255 4,433,923 NE Invt Fin Auth Sing Fam Ser D AMT(13)(7) 5.25% 9/1/2022 AAA 725 744,698 New Orleans LA Fin Auth Mtg Rev Ser B-2 AMT(13) 6.00% 12/1/2018 Aaa 410 432,857 North Carolina Hsg Fin Agy Sing Fam Rev Ser BB AMT 6.25% 3/1/2012 AA 800 831,080 Oklahoma Hsg Fin Agy Sing Fam Mtg Ser B-1(13) 5.30% 9/1/2026 Aaa 115 119,232 Oklahoma Hsg Fin Agy Sing Fam Rev Cap Apprec Ser D-1(13) Zero Coupon 3/1/2029 Aaa 4,505 1,140,125 Oklahoma Hsg Fin Agy Sing Fam Rev Mtg Homeowner Ser B-1 Zero Coupon 3/1/2029 Aaa 2,590 646,309 Oklahoma Hsg Fin Agy Sing Fam Rev Mtg Homeowner Ser D-2 AMT(13) Zero Coupon 9/1/2030 Aaa 2,600 496,626 Prince Georges Cnty MD Hsg Single Fam Ser A AMT(13)(7) 6.15% 8/1/2019 AAA 60 63,838 Vermont Hsg Fin Agy Sing Fam Hsg Ser 16A AMT(11) 5.50% 11/1/2021 AAA 3,300 3,411,276 Washington St Hsg Fin Cmnty Sing Fam Prog Ser A-2 AMT(13)(7) 6.30% 12/1/2027 Aaa 425 443,407 West Virginia St Hsg Dev Fd Hsg Fin Ser B AMT 5.25% 11/1/2018 AAA 2,345 2,403,836 Wyoming Cmnty Dev Auth Hsg Rev Ser 5 5.90% 6/1/2017 AA 500 533,760 ------------- TOTAL 35,638,797 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 24 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ INDUSTRIAL 1.78% Clark Cnty NV Ind Dev Rev Ser C AMT(2) 5.95% 12/1/2038 AAA $ 3,320 $ 3,613,222 Connecticut St Dev Auth Solid Wst Dsp Fac Rev Pfizer Inc AMT 7.00% 7/1/2025 AAA 2,500 2,724,575 Jacksonville FL Swr & Solid Wst Disp Fac Rev Anheuser AMT 5.875% 2/1/2036 A+ 500 518,765 Moraine OH Solid Waste Disp General Motors Corp Pj AMT 5.65% 7/1/2024 Baa1 450 447,782 Rhode Island St Eco Dev Providence Place Mall(16) 6.125% 7/1/2020 AA 550 625,911 Texas City TX Ind Dev Corp Marine Term Rev Arco Pipe Line 7.375% 10/1/2020 AA+ 650 859,248 Wyandotte Cnty KS City KS Univ Govt Ref GM Grp Pj 6.00% 6/1/2025 Baa1 1,900 1,970,376 ------------- TOTAL 10,759,879 ------------- LEASE 5.69% Arizona ST Ctfs Partn Ser A(15) 5.00% 11/1/2020 AAA 200 211,270 Bemidji MN Lease Rev MN St Bureau Criminal Appreh(15) 5.75% 12/1/2018 Aaa 555 624,902 Bemidji MN Lease Rev MN St Bureau Criminal Appreh(15) 5.75% 12/1/2019 Aaa 315 352,762 Boise City ID Lease Rev Urban Renewal ADA Cnty Courts(2) 6.25% 8/15/2019 AAA 7,385 8,611,870 Charlotte NC C Partn Govtl Facs Projs-Ser G 5.375% 6/1/2026 AA+ 2,250 2,368,485 Grand Rapids MI Pub Sch(15) 5.00% 11/1/2021 AAA 250 261,307 Greenville Cnty SC Sch Dist Installment Pur Ref Bldg 5.50% 12/1/2028 AA- 5,500 5,759,545 Henrico Cnty VA Econ Dev Auth Pub Fac Lease Rev Jail Pj 6.125% 11/1/2019 Aa1 1,000 1,178,680 Murray City UT Mun Bldg Auth Ser A(2) 5.30% 12/1/2021 Aaa 2,925 3,105,736 Omaha Convention Hotel Corp. Convention Ctr - Ser A(2) 5.125% 4/1/2032 AAA 1,250 1,272,825 Providence RI Redev Agy Rev Pub Safety & Mun Bldgs Ser A(2) 5.75% 4/1/2029 Aaa 415 455,890 Spartanburg Cnty SC Sch Dist McCarthy Teszler Pj(18) 5.00% 3/1/2022 AAA 1,000 1,039,480 St Paul MN Port Auth Lease Rev Office Bldg 5.00% 12/1/2022 AA+ 1,000 1,038,660
SEE NOTES TO FINANCIAL STATEMENTS. 25 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ State Pub Sch Bldg Auth PA Sch Rev Lease-Philadelphia Sch(11) 5.00% 6/1/2033 AAA $ 3,000 $ 3,034,200 West Vy City Utah Mun Bldg(2) 5.50% 8/1/2027 AAA 1,000 1,061,640 Wyoming Bldg Corp Rev(2) 6.00% 10/1/2019 AAA 1,425 1,659,370 Wyoming Bldg Corp Rev(2) 6.00% 10/1/2021 AAA 2,000 2,308,720 ------------- TOTAL 34,345,342 ------------- MISCELLANEOUS 10.31% AZ Tourism & Sports Auth Tax Multipurpose Stadium(15) 5.375% 7/1/2022 Aaa 5,000 5,448,800 BI State Dev Agy MO Met Dist Metrolink Cross Cnty Proj-B(11) 5.00% 10/1/2032 AAA 5,000 5,070,700 Cache Cnty UT Sales Tax Rev(10) 5.00% 12/15/2022 AAA 1,470 1,516,952 Chicago IL Spl Transn Rev(2) 5.25% 1/1/2031 AAA 12,500 12,973,125 CO Ed & Cultural Fac Auth Rev Colorado Public Radio 5.625% 7/1/2022 BBB 100 106,047 FL St Dept Environmental Protn Preservation Rev FL Forever(15) 5.00% 7/1/2012 AAA 2,500 2,788,250 George L Smith II GA World Congress Ctr Auth Rev AMT(15) 5.75% 7/1/2015 AAA 1,500 1,670,865 George L Smith II GA World Congress Ctr Rev AMT(15) 5.50% 7/1/2020 AAA 700 754,782 Indiana Bd Bk Rev St Revolving Fund Prog Ser A 6.75% 2/1/2017 AAA 500 543,125 Larimer Cnty CO Sales & Use Tax Rev Fairgrounds & Events(15) 5.00% 12/15/2019 AAA 750 798,292 Louisiana Loc Govt Envir Fac Pkg Fac Garage Pj Ser A(2) 5.375% 10/1/2026 AAA 1,500 1,578,045 Memphis-Shelby Cnty TN Sports Memphis Arena Pj(2) 5.25% 11/1/2023 AAA 1,765 1,865,393 MI St Bldg Auth Rev Ref-Facs Prog-Ser I(11) 5.00% 10/15/2009 AAA 5,285 5,995,304 Michigan St Environmental Ref(15)(14) 5.50% 12/1/2013 AAA 1,000 1,162,290 MS Dev Bk Spl Oblig Cap Pjs & Equip Acquisition(2) 5.00% 7/1/2024 AAA 2,000 2,095,120 Omaha Convention Hotel Corp. Rite-PA 1078 RIBs(2) 8.859% 4/1/2010 AAA 5,000 5,182,600 Pittsburgh & Allegheny Cnty PA Auditorium Regl Asset Dist(2) 5.00% 2/1/2029 AAA 2,500 2,525,750 Regional Transn Dist CO Sales(11) 5.00% 11/1/2009 AAA 3,335 3,782,224
SEE NOTES TO FINANCIAL STATEMENTS. 26 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ St. Louis MO Ind Dev Auth Rev Kiel Ctr Multi Purp Arena AMT 7.875% 12/1/2024 BB(b) $ 3,500 $ 3,597,440 UT Tran Auth Sales Tax Rev Ser A(11) 5.00% 6/15/2025 AAA 1,000 1,013,920 Virginia St Pub Bldg Auth Pub Fac Rev Ser A 5.75% 8/1/2020 AA+ 600 675,510 Westminister CO Sales & Use Tax Ref Rev(2) 5.25% 12/1/2022 AAA 1,090 1,168,513 ------------- TOTAL 62,313,047 ------------- POWER 0.90% Grant Cnty WA Pub Util Dist #2 Pr Rap Hydro 2nd Ser B AMT(15) 5.375% 1/1/2018 AAA 300 321,309 HI St Dept Bdg & Fin Spl Purp Mtg Rev HI Elec Co Ser A AMT(15) 6.60% 1/1/2025 AAA 135 143,924 Los Angeles CA Wtr & Pwr Rev Pwr Sys Ser A-A1(11) 5.25% 7/1/2020 AAA 2,600 2,775,188 North Carolina Muni Pwr Agy #1 Catawba Elec Rev(1)(4) 5.00% 1/1/2015 A 1,125 1,139,726 South Carolina St Pub Svc(11) 5.25% 1/1/2019 AAA 950 1,035,994 ------------- TOTAL 5,416,141 ------------- PRE-REFUNDED 12.78% Baltimore MD Rev Water Pj Ser A(11) 6.00% 7/1/2018 AAA 285 340,683 Baltimore MD Rev Water Pj Ser A(11) 6.00% 7/1/2020 AAA 275 328,729 Cobb Cnty GA Kennestone Hosp Auth Rev Ctfs Ser 86 A ETM(15) Zero Coupon 8/1/2015 AAA 1,000 521,880 Culpeper Cnty VA Sch(11) 6.00% 1/15/2021 AAA 690 822,170 Cumberland Cnty NC Ctfs Partn Civic Ctr Proj Ser A(2) 6.40% 12/1/2019 AAA 2,800 3,031,140 Dallas TX Indpt Sch Dist Prerefunded PSF 5.50% 2/15/2017 AAA 8,700 10,102,788 Delaware Transn Auth Trans Sys Rev Sr 6.00% 7/1/2020 AA 6,215 7,429,287 Detroit MI Wtr Supply Sys Prerefunded Sr Lien Ser A(10) 5.25% 7/1/2033 AAA 6,420 7,377,864 Detroit MI Wtr Supply Sys Sr Lien Ser A(10) 5.75% 7/1/2028 AAA 1,500 1,786,980 Fayette Cnty GA Pub Fac Auth Criminal Justice Center Pj 6.00% 6/1/2030 AA 3,500 4,205,215 Glendale AZ Dev Auth Ed Fac Rev Amer Graduate Sch Intl(5) 7.125% 7/1/2020 AAA 1,000 1,115,460
SEE NOTES TO FINANCIAL STATEMENTS. 27 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Houston TX Wtr & Swr Sys Rev Ser D(15) 6.125% 12/1/2029 AAA $ 1,400 $ 1,483,440 Indiana St Ed Fac Auth Rev 6.65% 3/1/2019 Aaa 860 897,376 Iowa Fin Auth Rev ETM 5.25% 8/15/2021 Aa2 235 248,818 Iowa Fin Auth Rev IA St Revolving Fd Comb Ser 6.25% 5/1/2024 A+ 3,400 3,537,360 Kilmarnock VA Pub Impt 6.25% 3/1/2027 BBB 1,430 1,622,235 Lane Cnty OR Sch Dist #052 5.625% 6/15/2020 Aa3 800 937,160 Lauderdale Cnty & Florence AL Hlthcare Auth Rev(15) 5.75% 7/1/2019 AAA 2,000 2,329,900 Linn Cnty OR Cmnty Sch Dist #9 Lebanon(15) 6.125% 6/15/2025 AAA 5,000 6,008,950 Miami-Dade Cnty FL Expwy Auth Toll Sys Rev(10) 6.375% 7/1/2029 AAA 1,000 1,226,560 Missouri St Envr Impt & Enrg Prerefunded St Revolv FD Ser B 7.20% 7/1/2016 Aaa 1,965 2,095,653 NJ St Transn Tr Fd Auth Transn Sys Ser B 6.00% 6/15/2019 AA- 2,550 3,045,235 North Providence RI Ser A(15) 6.125% 7/1/2016 AAA 1,410 1,660,712 Ohio St 6.20% 8/1/2013 AA+ 750 835,177 Phoenix AZ Civic Impt Corp(10) 6.00% 7/1/2024 AAA 2,400 2,888,808 Puerto Rico Comwlth Pub Impt RIBs 10.54% 7/1/2029 A- 750 891,330 Puerto Rico Comwlth Ser A ETM 5.50% 10/1/2040 AAA 1,000 1,090,640 South Carolina Jobs Economic Dev Auth Hosp Fac Rev 7.375% 12/15/2021 BBB 2,000 2,564,880 University NM Tech Dev Corp Lease Rev Univ Ctr Res Ser A(15) 6.55% 8/15/2025 AAA 1,410 1,506,585 Virginia St Pub Sch Auth Ser A 6.20% 8/1/2014 Aa1 1,450 1,542,003 Weber Cnty UT Mun Bldg Auth Lease Rev(16) 7.50% 12/15/2019 Aaa 2,250 2,469,870 White Hsg Util Dist TN Robertson/Sumner Cntys Wtr/Swr(11) 6.00% 1/1/2026 Aaa 1,090 1,288,500 ------------- TOTAL 77,233,388 ------------- RESOURCE RECOVERY 0.38% Cobb Cnty GA Solid Waste Mgmt Auth Rev AMT 6.40% 1/1/2015 AAA 900 945,180 Missouri St Envr Impt & Enrg Unrefunded Bal St Revolving B 7.20% 7/1/2016 Aaa 1,285 1,364,092 ------------- TOTAL 2,309,272 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 28 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ SPECIAL TAX 1.51% Ernest N Morial New Orleans LA Exhibit Hall Auth Spl Tax(2) 5.00% 7/15/2010 AAA $ 3,675 $ 4,122,909 Los Angeles CA Cmnty Facs Dist Playa Vista(2) 4.50% 9/1/2021 AAA 1,825 1,813,831 Portland OR Urb Ren & Redev Downtown Waterfront Ser A(2) 5.50% 6/15/2020 Aaa 650 715,377 Portland OR Urb Ren & Redev Downtown Waterfront Ser A(2) 5.75% 6/15/2019 Aaa 1,500 1,712,790 Salida CA Area Pub Fac Fin Agy Cmnty Fac Dist Spl Tax #1998-1(11) 5.25% 9/1/2028 AAA 355 365,331 San Juan Cnty NM Tax / Motor Ref & Impt(15)(14) 5.25% 5/15/2022 AAA 390 413,548 ------------- TOTAL 9,143,786 ------------- TRANSPORTATION 6.81% Billings MT Arpt Rev AMT(15) 6.10% 7/1/2016 AAA 190 218,842 Billings MT Arpt Rev AMT(15) 6.20% 7/1/2020 AAA 2,775 3,146,767 Houston TX Arpt Sys Rev Sub Lien Ser A AMT(10) 5.50% 7/1/2012 AAA 1,610 1,784,041 Houston TX Arpt Sys Rev Sub Lien Ser A AMT(11) 5.70% 7/1/2030 AAA 2,615 2,669,523 Metropolitan Trans Auth NY Rev Ser U(10)(17) 5.125% 11/15/2031 AAA 5,000 5,107,450 Metropolitan Washington DC Arpt Auth Sys Ref Ser A AMT(d)(10) 5.125% 10/1/2029 AAA 5,700 5,751,015 New Jersey St Tpk Auth Rev Ser A(2) 5.00% 1/1/2030 AAA 10,000 10,176,900 North TX Thruway Auth Dallas North Twy Sys Rev Ref Ser C(11) 3.00% 1/1/2006 AAA 900 933,318 Pennsylvania St Tpk Comm Oil Franchise Tax Rev Sub-Ser B(15) 5.00% 12/1/2031 AAA 4,750 4,810,135 Port Kalama WA Rev Ser B AMT 5.625% 12/1/2015 A3 1,025 1,073,011 Puerto Rico Comwlth Hwy & Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 1,500 1,588,230 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser PMD RIBs(11)(6) 10.68% 7/1/2026 Aaa 500 589,650 Rhode Island St Eco Corp Arpt Rev Ser B(10) 6.00% 7/1/2020 AAA 1,210 1,391,173 Rhode Island St Eco Corp Arpt Rev Ser B(10) 6.00% 7/1/2028 AAA 1,200 1,361,928 San Francisco CA City & Cnty Arpt Lease SFO Fuel Ser A AMT(11) 6.125% 1/1/2027 AAA 500 550,550 ------------- TOTAL 41,152,533 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 29 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ WATER/SEWER 5.40% Brighton Township MI San Sew Drainage Dist(11) 5.25% 10/1/2018 AAA $ 1,615 $ 1,745,928 Broad River NC Wtr Auth(15) 5.375% 6/1/2026 Aaa 400 424,324 Chisholm Creek Util Auth KS Bel Aire & Park City KS Proj(15) 5.25% 9/1/2020 Aaa 320 346,234 Chisholm Creek Util Auth KS Bel Aire & Park City KS Proj(15) 5.25% 9/1/2021 Aaa 1,025 1,101,916 Detroit MI Disp Rev Ref-Sr Lien-Ser A(11) 5.00% 7/1/2028 AAA 3,680 3,730,747 Gainesville GA Wtr & Sew Rev(11) 5.375% 11/15/2020 AAA 2,900 3,146,703 Gautier MI Util Dist Util Sys Rev Ref(10) 5.125% 3/1/2019 Aaa 425 451,052 Grand Forks ND Wtr Rev Ser D(15) 5.375% 9/1/2020 Aaa 1,150 1,235,272 Iowa City IA Swr Rev(11) 5.375% 7/1/2020 Aaa 620 663,983 Kansas St Dev Fin Auth Rev Pub Wtr Supply Revolving Ln-2 4.75% 4/1/2018 Aa3 1,180 1,210,220 Midlothian TX Wtr Dist(11) Zero Coupon 9/1/2022 AAA 2,000 763,160 New York City Muni Wtr Fin 5.125% 6/15/2031 AA 5,000 5,074,250 New York NY City Muni Wtr Fin Auth Wtr & Swr Sys Rev Ser A 5.50% 6/15/2023 AA 1,050 1,106,564 Oregon St Brd Bk Rev OR Econ Cmnty Dev Dept Ser A(15) 5.50% 1/1/2017 AAA 570 627,502 Paragould AR Wtr Swr & Elec Rev(2) 5.65% 12/1/2025 AAA 615 675,602 Rockingham NC Ctfs Partn(2) 5.00% 4/1/2020 AAA 1,205 1,286,651 South Dakota Conservancy Dist(2) 5.00% 8/1/2022 Aaa 2,700 2,789,883 South Dakota Conservancy Dist Rev Clean Wtr St Revolving Fd(2) 5.00% 8/1/2022 Aaa 500 513,985 Utah Wtr Fin Agy Rev Pooled LN Fin Prog(2) 5.125% 7/1/2023 Aaa 1,000 1,031,560 Whittier CA Util Auth Wtr Wtr Rev(15) 5.00% 6/1/2033 AAA 1,000 1,009,860 WV St Wtr Dev Auth Rev Loan Prog III Ser A AMT(2) 6.25% 7/1/2030 AAA 1,470 1,652,706 WV Wtr Dev Auth Infrastucture Rev Ser A(11) 5.625% 10/1/2026 AAA 1,555 1,679,291 York Cnty VA Swr Rev 5.875% 6/1/2024 Aa3 330 364,746 ------------- TOTAL 32,632,139 ------------- TOTAL MUNICIPAL BONDS (COST $559,381,110) 591,328,418 =============
SEE NOTES TO FINANCIAL STATEMENTS. 30 SCHEDULE OF INVESTMENTS (CONTINUED) NATIONAL TAX-FREE FUND SEPTEMBER 30, 2003
RATING: INTEREST MATURITY S&P OR SHARES INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS 2.44% MONEY MARKET MUTUAL FUNDS 2.44% Dreyfus Municipal Cash Management Plus 13,254 $ 13,254,053 SSgA Tax Free Money Market Fund 1,500 1,500,000 ------------- TOTAL SHORT-TERM INVESTMENTS (Cost $14,754,053) 14,754,053 ------------- TOTAL INVESTMENTS 100.30% (Cost $574,135,163) $ 606,082,471 ==============================================================================================================================
SCHEDULE OF INVESTMENTS CALIFORNIA TAX-FREE FUND SEPTEMBER 30, 2003
PRINCIPAL AMOUNT (000) ------------ MUNICIPAL BONDS 97.62% EDUCATION 11.15% Abag Fin Auth For Nonprofit Corps CA Rev Sch of Mech Arts 5.25% 10/1/2026 A3 $ 500 503,345 CA Ed Fac Auth Rev Loyola-Marymount Univ(15) 5.00% 10/1/2024 Aaa 775 786,214 CA Ed Fac Auth Rev Pepperdine Univ 5.75% 9/15/2030 A1 2,000 2,111,240 CA Ed Fac Auth Rev Res Ctfs Ser 113 RIBs 9.015% 12/1/2027 AAA 2,525 2,622,970 CA Ed Fac Auth Rev Scripps College 5.25% 8/1/2021 A1 425 439,569 CA Ed Fac Auth Rev Scripps College 5.25% 8/1/2026 A1 1,145 1,162,530 CA Ed Fac Auth Rev Univ of Southern CA 5.50% 10/1/2027 AA+ 1,160 1,215,529 California Ed Fac Auth Rev Univ of San Diego(2) 5.00% 10/1/2028 Aaa 1,250 1,263,950 California Ed Fac Auth Rev Univ of San Francisco(15) 6.00% 10/1/2016 AAA 75 84,410 California Ed Fac Auth Rev Univ of San Francisco(15) 6.00% 10/1/2026 AAA 2,565 2,846,381 California St Univ Fndtn Rev Monterey Bay(15) 5.30% 6/1/2022 AAA 250 264,985 California St Univ Fndtn Rev Sacramento Auxiliary Ser A(15) 5.50% 10/1/2027 AAA 400 427,184
SEE NOTES TO FINANCIAL STATEMENTS. 31 SCHEDULE OF INVESTMENTS (CONTINUED) CALIFORNIA TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ California St Univ Rev & Colleges Hsg Sys(10) 5.90% 11/1/2021 AAA $ 1,045 $ 1,151,653 California Statewide Cmntys Dev Auth Aux Fndtn CA St Univ(15) 5.20% 6/1/2024 AAA 525 539,831 Inglewood Calif Uni Sch Dist 1998 Election- Ser C(d)(11) 4.75% 10/1/2024 AAA 500 500,000 Los Angeles Calif Uni Sch Dist Ser A(11) 5.00% 7/1/2022 AAA 1,500 1,550,160 Los Angeles Calif Uni Sch Dist Ser D(10) 5.375% 7/1/2025 AAA 1,000 1,039,720 Pleasanton CA Uni Sch Dist Ctfs Partn Fin Proj(2) 4.75% 5/1/2021 AAA 360 362,416 Sonoma Cnty CA Jr College Dist Election 2002-Ser A(11) 5.25% 8/1/2022 AAA 1,140 1,210,030 University CA Rev Multi Purp Ser K 5.25% 9/1/2024 Aa2 1,545 1,589,990 ------------- TOTAL 21,672,107 ------------- GENERAL OBLIGATION 25.11% Anaheim CA Unified High Sch Dist Ser A(11) 5.00% 8/1/2025 AAA 785 797,270 Antelope Valley CA Unified High Sch(15) 5.00% 8/1/2022 AAA 2,180 2,253,422 Barstow CA Unified Sch Dist Ser A(10) 5.00% 8/1/2026 Aaa 2,500 2,533,675 Berryessa CA Unified Sch Dist Election of 1999 Ser B(11) 5.25% 8/1/2019 AAA 1,015 1,098,392 Beverly Hills CA Uni Sch Dist Ser A 5.00% 8/1/2026 AA 1,140 1,151,275 California St(10) 5.25% 9/1/2030 AAA 890 913,282 California St Ref(15) 5.00% 2/1/2022 AAA 2,700 2,766,339 California St Ser B AMT 5.70% 12/1/2032 A 640 656,442 Capistrano CA Unified Sch Dist Fac Impt Dist #1 Ser A(10) 6.00% 8/1/2024 AAA 2,500 2,808,700 Centinela Valley CA High Sch Election 2000 Ser D(10) 5.25% 8/1/2024 AAA 1,145 1,198,620 Centralia CA Sch Dist Election of 2002 Ser A(10) 5.00% 8/1/2023 AAA 1,070 1,097,510 Centralia CA Sch Dist Election of 2002 Ser A(10) 5.00% 8/1/2024 AAA 580 591,246 El Monte CA City Sch Dist Ser A(11) 6.25% 5/1/2025 AAA 1,230 1,403,467 Escondido CA Un Sch Dist Ser A(11) 5.25% 8/1/2022 AAA 2,000 2,112,640 Franklin-McKinley CA Sch Dist Ser B(11) 5.00% 8/1/2027 AAA 675 684,376 Fremont CA Unified High Sch Dist Santa Clara Cnty Ser B(10) 5.25% 9/1/2025 AAA 1,000 1,033,280
SEE NOTES TO FINANCIAL STATEMENTS. 32 SCHEDULE OF INVESTMENTS (CONTINUED) CALIFORNIA TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Lincoln CA Pub Fing Auth Pub Safety & Corp Yard Proj(15) 5.00% 8/1/2028 AAA $ 1,000 $ 1,010,900 Los Angeles CA Cmnty College Ser A(15) 5.00% 6/1/2026 AAA 2,375 2,407,086 Los Angeles Calif Uni Sch Dist MBIA-Ser A(11) 5.00% 7/1/2024 AAA 1,000 1,020,810 Mojave CA Unified Sch Dist Sch Fac Impt Dist #001(10) 5.00% 8/1/2024 AAA 1,060 1,078,857 Mojave CA Unified Sch Dist Sch Facs Impt Dist No 001(10) 5.25% 8/1/2022 AAA 1,230 1,299,274 Montebello CA Unified Sch Dist(11) 5.00% 8/1/2020 AAA 350 367,293 Mount Pleasant CA Elem Sch Dist 1998 Election Ser C(11) 5.50% 3/1/2026 AAA 465 495,234 Oxnard CA Unified High Sch Dist Ref Ser A(15) 6.00% 2/1/2020 AAA 650 760,819 Oxnard CA Unified High Sch Dist Ref Ser A(15) 6.20% 8/1/2030 AAA 3,000 3,447,570 Pittsburgh CA Unified Sch Dist Ser E(11) 6.00% 8/1/2024 AAA 1,380 1,535,167 Pittsburgh CA Redev Agy Los Medanos Cmnty Dev Pj(2) Zero Coupon 8/1/2026 AAA 3,500 1,030,190 Pomona CA Unified Sch Dist(15) 6.15% 8/1/2030 AAA 1,000 1,166,660 Pomona CA Unified Sch Dist Ser A(15) 6.55% 8/1/2029 AAA 1,000 1,267,900 San Gabriel CA Unified Sch Dist Ser A(11) 5.00% 8/1/2024 AAA 2,725 2,773,478 Santa Cruz CA City Elem Sch Dist Ser B(10) 6.00% 8/1/2029 AAA 2,500 2,829,325 South Pasadena CA Uni Sch Dist Election of 2002-Ser A(10) 5.125% 5/1/2028 AAA 1,600 1,636,480 Southwestern Cmnty College(2) 5.375% 8/1/2025 AAA 1,500 1,580,130 ------------- TOTAL 48,807,109 ------------- HEALTHCARE 2.39% CA Infrastructure & Econ Dev Bk Rev Kaiser Hosp Ser A 5.50% 8/1/2031 A 1,300 1,337,674 CA Infrastructure & Econ Dev Bk Rev Kaiser Hosp Ser B 5.55% 8/1/2031 A 650 666,776 CA Infrastructure & Econ Scripps Research Inst Ser A 5.75% 7/1/2030 Aa3 1,500 1,593,975 Torrance CA Hosp Rev Torrance Memorial Med Ctr Ser A 5.50% 6/1/2031 A+ 500 509,965
SEE NOTES TO FINANCIAL STATEMENTS. 33 SCHEDULE OF INVESTMENTS (CONTINUED) CALIFORNIA TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Torrance CA Hosp Rev Torrance Memorial Med Ctr Ser A 6.00% 6/1/2022 A+ $ 500 $ 538,525 ------------- TOTAL 4,646,915 ------------- HOUSING 3.25% California Hsg Fin Agy Rev Home Mtg Ser K AMT**(15)(8) 0.00%/5.70% 2/1/2012 AAA 5,295 3,506,720 & 2015 California Hsg Fin Agy Rev Home Mtg Ser K AMT(15)(8) Zero Coupon 2/1/2022 AAA 5,000 1,797,650 Cathedral City CA Pub Fin Tax Alloc Hsg(15) 5.00% 8/1/2026 AAA 1,000 1,011,610 ------------- TOTAL 6,315,980 ------------- INDUSTRIAL 5.47% California Poll Ctrl Fin Auth Rev Southern CA Ser B AMT(2)(17) 6.40% 12/1/2024 AAA 10,435 10,630,343 ------------- LEASE 10.40% California St Pub Wk Brd Lease Rev Dept Gen Svcs Teale Data(2) 5.25% 3/1/2020 AAA 1,000 1,057,740 Chula Vista CA Ctfs Partn(15) 5.00% 8/1/2023 AAA 1,205 1,238,415 Inglewood CA Pub Fin Auth Rev Ser A(2) 5.25% 8/1/2021 AAA 600 640,800 Orange Cnty CA Recovery Ctfs Partn Residual Ser 128 RIBs(15) 10.365% 7/1/2019 AAA(c) 2,500 3,092,200 Orange Cnty CA Recovery Ctfs Partn Ser A(15) 6.00% 7/1/2026 AAA 750 833,182 Plumas Cnty CA CTFS Partn Cap Impt Prog-Ser A(2) 5.25% 6/1/2023 AAA 1,365 1,436,662 Sacramento CA City Fin Auth Rev Cap Impt Ser A(2) 5.00% 12/1/2020 AAA 2,000 2,087,780 Sacramento CA City Fin Auth Rev Cap Impt Ser A(2) 5.00% 12/1/2026 AAA 900 910,791 San Buenaventura CA Ctfs Partn Ser C(2) 5.25% 2/1/2031 AAA 2,575 2,668,962 San Francisco CA City & Cnty San Bruno Jail No 3(2) 5.25% 10/1/2033 AAA 5,000 5,156,300 Santa Ana CA Unified Sch Dist Ctfs Partn Fin Pj(11) Zero Coupon 4/1/2019 AAA 2,295 1,097,194 ------------- TOTAL 20,220,026 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 34 SCHEDULE OF INVESTMENTS (CONTINUED) CALIFORNIA TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ MISCELLANEOUS 2.43% CA Infrastructure & Econ Bk Rev Asian Museum Fdtn(15) 5.25% 6/1/2030 AAA $ 115 $ 119,246 CA Infrastructure & Econ Bk Rev YMCA Metropolitan LA Pj(2) 5.25% 2/1/2026 AAA 2,000 2,087,120 Loma Linda CA Redev Agy Tax Allocation Ref-Loma Linda(15) 5.125% 7/1/2030 AAA 1,000 1,024,330 Oakland CA JT Pwrs Fin Auth Reassmt Rev 5.50% 9/2/2024 A- 410 426,785 Puerto Rico Pub Fin Corp Comwlth Approp Ser E 5.50% 8/1/2029 BBB+ 1,000 1,054,540 ------------- TOTAL 4,712,021 ------------- POWER 4.42% CA St Dept Wtr Res Pwr Supply Rev Insured Series(18) 5.375% 5/1/2017 AAA 1,000 1,097,690 Los Angeles CA Wtr & Pwr Rev Pwr Sys-A-1(15)(14) 5.00% 7/1/2024 AAA 850 862,648 Puerto Rico Elec Pwr Auth Pwr Rev Ser NN(15) 5.00% 7/1/2032 AAA 1,500 1,538,295 Puerto Rico Elec Pwr Auth Pwr Rev Ser NN 5.125% 7/1/2029 A- 2,750 2,797,273 Puerto Rico Elec Pwr Auth Rev Ser II(11) 5.125% 7/1/2026 AAA 500 519,995 Sacramento CA Muni Util Dist Ref-Ser Q(11) 5.25% 8/15/2022 AAA 1,000 1,056,530 Shasta CA Jt Pwrs Fin Auth Cnty Admin Bldg PJ-A(15) 5.25% 4/1/2023 AAA 675 710,032 ------------- TOTAL 8,582,463 ------------- PRE-REFUNDED 7.48% CA Ed Fac Auth Rev Pooled College/Univ Ser C ETM 6.50% 6/1/2020 Baa3 3,000 3,585,870 California St Pub Wks Brd Lease Rev Dept Corrections(2) 5.80% 1/1/2013 AAA 5,000 5,607,450 M-S-R Pub Pwr Agy CA San Juan Pj Rev Ser D ETM(15) 6.75% 7/1/2020 AAA 980 1,239,808 Sacramento CA Muni Util Dist Elec Rev Ser M 5.25% 7/1/2028 A 1,885 1,963,680 Sacramento CA Muni Util Dist Ser M(15)(14) 5.25% 7/1/2028 AAA 275 286,583
SEE NOTES TO FINANCIAL STATEMENTS. 35 SCHEDULE OF INVESTMENTS (CONTINUED) CALIFORNIA TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Sacramento CA Muni Util Dist Ser M(15)(14) 5.25% 7/1/2028 AAA $ 700 $ 729,484 Santa Cruz CA City High Sch Ser B(10) 6.00% 8/1/2029 AAA 1,000 1,131,730 ------------- TOTAL 14,544,605 ------------- RESOURCE RECOVERY 1.37% California Poll Ctrl Fin Auth Rev Pacific Gas/Elec Ser A AMT(15) 5.35% 12/1/2016 AAA 2,000 2,154,200 San Joaquin Cnty CA Rev Ctfs Partn Solid Waste Sys Facs PJS(15) 5.00% 4/1/2022 AAA 500 516,410 ------------- TOTAL 2,670,610 ------------- SPECIAL TAX 6.93% Concord CA Redev Agy Tax Alloc Ser 3(3) 8.00% 7/1/2018 AAA 35 35,558 CSUCI Fin Auth Rev CA East Campus Cmnty Ser A(15) 5.25% 9/1/2026 AAA 5,500 5,727,205 Los Angeles Cnty CA Met Trans Auth Sales Prop A-1St Sr-Ser A(11) 5.00% 7/1/2027 AAA 400 405,060 Riverside Cnty CA Redev Agy Tax Alloc Jupura Valley Proj(2) 5.25% 10/1/2035 AAA 2,000 2,057,980 Rnr Sch Fin Auth CA Spl Tax Cmnty Fac Dist #92-1 Ser A(2) 5.625% 9/1/2030 AAA 3,985 4,307,187 Salida CA Area Pub Fac Fin Agy Cmnty Fac Dist Spl Tax #1998-1(11) 5.25% 9/1/2028 AAA 900 926,190 ------------- TOTAL 13,459,180 ------------- TRANSPORTATION 12.52% Bay Area Govt Assn CA Rev Bart SFO Extn-Arpt Premium-A(2) 5.00% 8/1/2026 AAA 2,000 2,026,940 Fresno CA Arpt Rev Ser A(11) 5.50% 7/1/2030 AAA 1,500 1,577,025 Port Oakland CA Port Rev Ser J(15) 5.50% 11/1/2026 AAA 5,000 5,333,300 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser D 5.75% 7/1/2041 A 4,000 4,321,840 Puerto Rico Comwlth Hwy & Transn Auth Ser G(10) 5.25% 7/1/2021 AAA 1,000 1,084,030 San Francisco CA City & Cnty Arpt Commn Rev Ser Issue 6 AMT(2) 6.50% 5/1/2018 AAA 4,500 4,699,800 San Francisco CA City & Cnty Aprt Commn Ser 2 Issue 15A AMT(11) 5.00% 5/1/2017 AAA 2,000 2,080,280
SEE NOTES TO FINANCIAL STATEMENTS. 36 SCHEDULE OF INVESTMENTS (CONTINUED) CALIFORNIA TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ San Francisco CA City & Cnty Arpt Lease SFO Fuel Ser A AMT(11) 6.125% 1/1/2027 AAA $ 500 $ 550,550 San Francisco CA City & Cnty Commn Intl Arpt Rev AMT(11) 5.75% 1/1/2014 AAA 500 556,190 San Francisco CA City & Cnty Ref Second Ser 28B(15) 5.25% 5/1/2023 AAA 2,000 2,095,540 ------------- TOTAL 24,325,495 ------------- WATER/SEWER 4.70% El Monte CA Wtr Auth Rev(2) 5.60% 9/1/2029 AAA 2,000 2,153,800 Imperial CA Ctfs Partn Ref Wtr Fac(10) 5.00% 10/15/2020 AAA 3,250 3,414,840 Palo Alto CA Util Rev Ser A 6.25% 6/1/2020 AA+ 1,610 1,688,649 San Luis Opispo Cnty CA Ser A(15) 5.375% 8/1/2030 AAA 1,800 1,875,474 ------------- TOTAL 9,132,763 ------------- TOTAL MUNICIPAL BONDS (Cost $181,141,516) 189,719,617 ============= SHARES (000) ------------ SHORT-TERM INVESTMENT 1.37% MONEY MARKET MUTUAL FUND 1.37% Dreyfus General CA Fund Class A (Cost $2,653,744) 2,654 2,653,744 ------------- TOTAL INVESTMENTS 98.99% (Cost $183,795,260) $ 192,373,361 ==============================================================================================================================
SCHEDULE OF INVESTMENTS CONNECTICUT TAX-FREE FUND SEPTEMBER 30, 2003
PRINCIPAL AMOUNT (000) ------------ MUNICIPAL BONDS 98.10% EDUCATION 19.78% CT St Hlth & Ed Fac Auth Rev CT College Ser E(15) 5.25% 7/1/2022 AAA $ 400 427,664 CT St Hlth & Ed Fac Auth Rev Fairfield Univ Ser I(15) 5.25% 7/1/2019 AAA 600 646,740 CT St Hlth & Ed Fac Auth Rev Fairfield Univ Ser I(15) 5.50% 7/1/2029 AAA 1,235 1,319,313
SEE NOTES TO FINANCIAL STATEMENTS. 37 SCHEDULE OF INVESTMENTS (CONTINUED) CONNECTICUT TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ CT St Hlth & Ed Fac Auth Rev Gunnery Sch(16) 5.35% 7/1/2031 AA $ 695 $ 711,298 CT St Hlth & Ed Fac Auth Rev Loomis Chaffee Sch Ser D 5.25% 7/1/2031 A2 2,750 2,825,460 CT St Hlth & Ed Fac Auth Rev Miss Porters Sch Ser A 5.75% 7/1/2029 A+ 3,200 3,424,000 CT St Hlth & Ed Fac Auth Rev Quinnipiac College Ser E(1)(11) 4.75% 7/1/2028 AAA 500 501,685 CT St Hlth & Ed Fac Auth Rev Suffield Academy Ser A(15) 5.40% 7/1/2027 AAA 1,350 1,424,750 CT St Hlth & Ed Fac Auth Rev Trinity College Ser E(15) 5.875% 7/1/2026 AAA 1,000 1,094,690 CT St Hlth & Ed Fac Auth Rev Trinity College Ser G(2) 5.00% 7/1/2021 AAA 1,000 1,048,100 CT St Hlth & Ed Fac Auth Rev Univ CT Fndtn Ser A 5.375% 7/1/2029 Aa3 210 216,409 CT St Hlth & Ed Fac Auth Rev Univ Hartford Ser E(16) 5.25% 7/1/2032 AA 2,900 2,969,165 CT St Hlth & Ed Fac Auth Rev Univ New Haven Issue D(1)(4) 6.70% 7/1/2026 A 1,000 1,061,780 CT St Hlth & Ed Fac Auth Rev Unrefunded Bal Sacrd Hrt Ser C 6.50% 7/1/2016 BBB- 275 293,895 University CT Ser A(10) 5.625% 3/1/2020 AAA 1,000 1,113,210 ------------- TOTAL 19,078,159 ------------- GENERAL OBLIGATION 25.11% Bridgeport CT Ser C(10) 4.75% 8/15/2021 AAA 1,000 1,020,340 Bridgeport CT Ser C(10) 5.00% 8/15/2020 AAA 500 524,145 Cromwell CT(d)(10) 4.50% 6/15/2023 AAA 800 790,680 CT St Ser A 5.625% 4/15/2020 AA 1,000 1,114,970 CT St Ser B 5.60% 6/15/2020 AA 250 277,005 CT St Ser D 5.125% 11/15/2018 AA 1,500 1,614,840 Hartford CT 6.50% 12/15/2005 A1 730 814,081 Monroe CT 6.60% 4/15/2005 Aa2 100 108,371 Montville CT 6.70% 6/15/2009 Aa3 550 672,963 Montville CT 6.70% 6/15/2010 Aa3 575 707,543 New Haven CT(10) 5.00% 11/1/2019 AAA 1,085 1,145,641 New Haven CT Ser A(2) 5.00% 11/1/2021 AAA 1,000 1,049,050 Puerto Rico Comwlth Pub Impt Zero Coupon 7/1/2018 A- 2,035 1,045,257 Puerto Rico Comwlth Pub Impt Ref(11) 5.125% 7/1/2030 AAA 2,450 2,524,774
SEE NOTES TO FINANCIAL STATEMENTS. 38 SCHEDULE OF INVESTMENTS (CONTINUED) CONNECTICUT TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- $ 1,170 $ 1,179,805 Puerto Rico Comwlth Pub Impt Ser A(10) 5.00% 7/1/2032 AAA 4,285 4,382,184 Redding CT 6.60% 4/15/2010 Aa1 100 122,410 Regional Sch Dist # 16 CT(10) 5.00% 2/1/2020 Aaa 115 121,236 Waterbury CT(11) 5.125% 4/1/2022 AAA 2,250 2,354,828 Waterbury CT Ser A(11) 5.00% 4/1/2019 AAA 1,250 1,324,488 West Haven CT(15) 6.50% 6/15/2006 AAA 100 113,521 Westport CT Lot A 4.50% 2/1/2021 Aaa 720 729,446 Westport CT Lot A 4.625% 2/1/2023 Aaa 485 487,134 ------------- TOTAL 24,224,712 ------------- HEALTHCARE 7.12% CT St Dev Auth Rev Duncaster Inc Pj(16) 5.125% 8/1/2022 AA 235 243,183 CT St Hlth & Ed Fac Auth Rev Bridgeport Hosp Ser A(15) 6.625% 7/1/2018 AAA 1,250 1,290,250 CT St Hlth & Ed Fac Auth Rev Bristol Hosp Ser B(16) 5.50% 7/1/2021 AA 1,000 1,084,380 CT St Hlth & Ed Fac Auth Rev Catholic Hlth East Ser F(15) 5.625% 11/15/2020 AAA 325 359,856 CT St Hlth & Ed Fac Auth Rev Child Care Fac Prog Ser C(2) 5.625% 7/1/2029 AAA 1,000 1,079,740 CT St Hlth & Ed Fac Auth Rev CT College Ser E(15) 5.00% 7/1/2032 AAA 1,050 1,067,755 CT St Hlth & Ed Fac Auth Rev St. Francis Hosp & Med(16) 5.00% 7/1/2022 AA 1,000 1,036,630 CT St Hlth & Ed Fac Auth Rev Waterbury Hosp Issue Ser C(16) 5.75% 7/1/2029 AA 650 704,984 ------------- TOTAL 6,866,778 ------------- HOUSING 6.99% CT St Hsg Fin Auth Fin Prog Subser A-2 AMT 5.50% 11/15/2022 AAA 1,000 1,039,050 CT St Hsg Fin Auth Hsg Mtg Fin Prog Ser D 2 AMT 5.15% 11/15/2022 AAA 555 567,909 CT St Hsg Fin Auth Hsg Mtg Fin Prog Subser A-2 5.35% 11/15/2022 AAA 500 519,985 CT St Hsg Fin Auth Hsg Mtg Fin Ser C - 2 AMT 6.00% 11/15/2020 AAA 760 809,734 CT St Hsg Fin Auth Spl Oblig-Grp Home Mtg-G-h5(2) 5.85% 6/15/2030 AAA 500 531,710
SEE NOTES TO FINANCIAL STATEMENTS. 39 SCHEDULE OF INVESTMENTS (CONTINUED) CONNECTICUT TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ CT St Hsg Fin Auth Spl Oblig-Spl Needs Hsg-SN-h1(2) 5.00% 6/15/2032 AAA $ 750 $ 764,273 CT St Hsg Fin Auth Subser B - 2 AMT 5.75% 11/15/2021 AAA 2,405 2,507,910 ------------- TOTAL 6,740,571 ------------- INDUSTRIAL 3.37% Connecticut St Dev Auth Govt Lease Rev(15) 6.60% 6/15/2014 AAA 500 528,705 Connecticut St Dev Auth Solid Wst Dsp Fac Rev Pfizer Inc AMT 7.00% 7/1/2025 AAA 2,500 2,724,575 ------------- TOTAL 3,253,280 ------------- MISCELLANEOUS 1.09% Puerto Rico Pub Fin Corp Comwlth Approp Ser E 5.50% 8/1/2029 BBB+ 1,000 1,054,540 ------------- POWER 10.06% Puerto Rico Elec Pwr Auth Pwr Rev Ser NN(15) 5.00% 7/1/2032 AAA 1,500 1,538,295 Puerto Rico Elec Pwr Auth Pwr Rev Ser NN 5.125% 7/1/2029 A- 3,000 3,051,570 Puerto Rico Elec Pwr Auth Rev Ser II(11) 5.125% 7/1/2026 AAA 2,925 3,041,971 Puerto Rico Elec Pwr Auth Rev Ser II 5.25% 7/1/2031 A- 1,000 1,026,000 Puerto Rico Elec Pwr Auth Ser HH(11) 5.25% 7/1/2029 AAA 1,000 1,046,520 ------------- TOTAL 9,704,356 ------------- PRE-REFUNDED 16.12% Connecticut St Clean Wtr Fd Rev 5.125% 9/1/2013 AAA 1,870 2,150,949 CT St Hlth & Ed Fac Auth Rev Auth Rev Sacred Heart Ser C 6.50% 7/1/2016 BBB- 725 837,505 CT St Ser A 6.00% 4/15/2015 AA 1,000 1,198,180 CT St Ser B 5.375% 10/1/2011 AA 1,000 1,093,890 CT St Ser S FSA(11)(6) 5.00% 11/15/2009 AAA 1,600 1,822,608 CT St Spl Tax Oblig Rev(10) 6.10% 10/1/2011 AAA 1,000 1,061,280 CT St Spl Tax Oblig Rev Transn Infrastructure-Ser A(10) 6.00% 12/1/2018 AAA 1,000 1,205,340 Municipal Secs Trust Ctfs Ser 7005 Cl B RIBs ETM+ 9.757% 10/1/2040 Aaa 1,000 1,181,280 Puerto Rico Comwlth 6.00% 7/1/2026 AAA 1,000 1,170,600
SEE NOTES TO FINANCIAL STATEMENTS. 40 SCHEDULE OF INVESTMENTS (CONTINUED) CONNECTICUT TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Puerto Rico Elec Pwr Auth Rev Ser X 6.125% 7/1/2021 Aaa $ 750 $ 831,728 Puerto Rico Elec Pwr Auth Ser T RIBs(11) 11.486% 7/1/2018 AAA 1,500 1,677,135 University CT Rev Student Fee Ser A(10) 5.75% 11/15/2020 AAA 205 243,989 University CT Rev Student Fee Ser A 6.00% 11/15/2021 AA- 390 470,402 University CT Rev Student Fee Ser A(10) 6.00% 11/15/2025 AAA 500 603,080 ------------- TOTAL 15,547,966 ------------- TRANSPORTATION 5.44% CT St Spl Tax Oblig Rev Rite PA 1039 R-A RIBs(11) 9.448% 1/1/2010 AAA 500 593,610 CT St Spl Tax Oblig Rev Rite PA 1039 R-B RIBs(11) 9.448% 1/1/2010 AAA 785 919,942 CT St Spl Tax Oblig Rev Rite PA 1039 R-C RIBs(11) 8.698% 7/1/2017 AAA 2,250 2,453,895 Puerto Rico Comwlth Hwy & Ser D(11) 5.00% 7/1/2032 AAA 1,250 1,279,250 ------------- TOTAL 5,246,697 ------------- WATER/SEWER 3.02% Connecticut St Dev Auth Wtr Bridgeport AMT(2)(17) 6.15% 4/1/2035 AAA 500 556,470 Connecticut St Dev Auth Wtr Fac Rev CT Wtr Co Ser A AMT(2) 5.75% 7/1/2028 AAA 250 250,950 South Cent CT Regl Wtr Auth 16th Ser(2) 5.375% 8/1/2030 AAA 1,000 1,054,640 South Cent CT Regl Wtr Auth Sys Rev 16th Ser(2) 5.375% 8/1/2025 AAA 1,000 1,052,230 ------------- TOTAL 2,914,290 ------------- TOTAL MUNICIPAL BONDS (Cost $89,348,851) 94,631,349 ============= SHARES (000) ------------ SHORT-TERM INVESTMENT 1.84% MONEY MARKET MUTUAL FUND 1.84% Dreyfus CT Muni Cash Management (Cost $1,777,379) 1,777 1,777,379 ============= TOTAL INVESTMENTS 99.94% (Cost $91,126,230) $ 96,408,728 ==============================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 41 SCHEDULE OF INVESTMENTS HAWAII TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS 97.57% EDUCATION 6.90% HI St Hsg Fin & Dev Corp Rev Univ of HI Faculty Hsg Pj(2) 5.65% 10/1/2016 AAA $ 1,000 $ 1,087,840 HI St Hsg Fin & Dev Corp Rev Univ of HI Faculty Hsg Pj(2) 5.70% 10/1/2025 AAA 380 405,437 University HI Univ Sys Rev(10) 5.125% 7/15/2032 AAA 1,000 1,025,880 University HI Univ Sys Rev Ser A(10) 5.50% 7/15/2029 AAA 2,500 2,664,600 ------------- TOTAL 5,183,757 ------------- GENERAL OBLIGATION 25.73% Hawaii Cnty HI Ser A(11) 5.00% 7/15/2023 AAA 1,000 1,036,750 Hawaii Cnty HI Ser A(10) 5.50% 7/15/2017 AAA 1,045 1,169,637 Hawaii Cnty HI Ser A(10) 5.60% 5/1/2013 AAA 1,780 2,069,321 Hawaii Cnty HI Ser A(11) 5.625% 5/15/2019 AAA 545 604,519 Hawaii St Ser BZ 6.00% 10/1/2010 AA- 500 594,700 Hawaii St Ser BZ 6.00% 10/1/2012 AA- 500 597,445 Hawaii St Ser CA(10) 8.00% 1/1/2013 AAA 2,000 2,681,000 Hawaii St Ser CP(10) 5.00% 10/1/2016 AAA 900 960,876 Hawaii St Ser CZ(11) 5.25% 7/1/2018 AAA 3,000 3,295,140 Honolulu HI City & Cnty Ser A(11) 5.125% 9/1/2021 AAA 600 629,592 Honolulu HI City & Cnty Ser A(10) 5.50% 9/1/2016 AAA 5 5,546 Honolulu HI City & Cnty Ser B(10) 5.00% 11/1/2016 AAA 265 283,216 Kauai Cnty HI Pub Impt Ser B(15) 5.25% 8/1/2017 AAA 95 104,352 Kauai Cnty HI Ser A(15) 5.50% 8/1/2021 AAA 2,495 2,712,789 Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- 500 504,190 Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 2,000 2,074,800 ------------- TOTAL 19,323,873 ------------- HEALTHCARE 9.07% HI St Dept Bdg & Fin Spl Purp Mtg Rev St Francis Med Ctrs(11) 6.50% 7/1/2022 AAA 1,200 1,215,156 HI St Dept Bdg & Fin Spl Purp Rev Kaiser Permanente Ser A 5.15% 3/1/2015 A 1,250 1,283,237
SEE NOTES TO FINANCIAL STATEMENTS. 42 SCHEDULE OF INVESTMENTS (CONTINUED) HAWAII TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ HI St Dept Bdg & Fin Spl Purp Rev Kapiolani Hlth 6.20% 7/1/2016 BBB+ $ 1,000 $ 1,045,160 HI St Dept Bdg & Fin Spl Purp Rev Kapiolani Hlth 6.25% 7/1/2021 BBB+ 2,000 2,060,840 HI St Dept Bdg & Fin Spl Purp Rev The Queens Hlth Sys Ser B(15) 5.25% 7/1/2023 AAA 1,000 1,050,260 Puerto Rico Ind Tourist Ed Med Mutuo Oblig Grp Ser A(15) 6.25% 7/1/2024 AAA 150 161,537 ------------ TOTAL 6,816,190 ------------ HOUSING 6.40% HI St Hsg Fin & Dev Corp Sing Fam Mtg Purp Rev Ser A AMT(9) 7.10% 7/1/2024 AAA 880 888,650 HI St Hsg Fin & Dev Corp Sing Fam Mtg Purp Rev Ser B(9) 5.30% 7/1/2028 AAA 850 868,768 HI St Hsg Fin & Dev Corp Sing Fam Mtg Purp Rev Ser B(9) 5.45% 7/1/2017 AAA 1,000 1,043,950 Honolulu HI City & Cnty Mtg Rev FHA Smith Beretania 8A(15)(8) 5.45% 1/1/2025 Aaa 500 503,940 Puerto Rico Hsg Fin Auth Home Mtg Rev AMT-Mtg Bkd Secs-Ser A 4.875% 6/1/2034 AAA 1,500 1,502,190 ------------- TOTAL 4,807,498 ------------- LEASE 0.70% Puerto Rico Pub Fin Corp Comwlth Approp Ser E 5.75% 8/1/2030 BBB+ 500 524,595 ------------- MISCELLANEOUS 5.47% HI St Ctfs Partn Cap Dist Kapolei St Office Ser A(2) 5.00% 5/1/2018 AAA 475 507,048 HI St Ctfs Partn Cap Dist St Office(15) 5.50% 5/1/2020 AAA 500 541,180 Puerto Rico Pub Bldg Auth Rev Govt Fac Ser B(2) 5.00% 7/1/2027 AAA 1,000 1,019,420 Puerto Rico Pub Bldg Auth Rev Gtd Govt Fac Ser D 5.25% 7/1/2036 A- 2,000 2,039,160 ------------- TOTAL 4,106,808 ------------- POWER 7.39% HI St Dept Bdg & Fin Spl Purp HI Elec Co Inc PJS-Ser A AMT(2) 5.10% 9/1/2032 AAA 1,500 1,504,185
SEE NOTES TO FINANCIAL STATEMENTS. 43 SCHEDULE OF INVESTMENTS (CONTINUED) HAWAII TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ HI St Dept Bdg & Fin Spl Purp Mtg Rev HI Elec Co Ser A AMT(15) 6.60% 1/1/2025 AAA $ 2,500 $ 2,665,250 Puerto Rico Elec Pwr Auth Rev Ser II(11) 5.125% 7/1/2026 AAA 1,330 1,383,187 ------------- TOTAL 5,552,622 ------------- PRE-REFUNDED 23.77% Hawaii St Ser CT(11) 5.875% 9/1/2019 AAA 1,175 1,399,637 Hawaii St Ser CU(15) 5.25% 10/1/2020 AAA 1,700 1,951,277 Honolulu HI City & Cnty Brd Wtr Supply Wtr Sys Rev 5.80% 7/1/2021 AA 1,000 1,131,150 Honolulu HI City & Cnty Ser A(15) 5.00% 11/1/2015 AAA 405 455,390 Honolulu HI City & Cnty Ser A(15) 5.00% 11/1/2015 AAA 1,095 1,169,701 Honolulu HI City & Cnty Ser A(10) 5.50% 9/1/2016 AAA 555 640,365 Honolulu HI City & Cnty Ser A(10) 5.50% 9/1/2016 AAA 440 499,730 Honolulu HI City & Cnty Ser B(10) 5.00% 11/1/2016 AAA 235 266,422 Honolulu HI City & Cnty Wtr ETM(10)(17) 6.00% 12/1/2015 AAA 1,000 1,220,250 Kauai Cnty HI(10) 6.125% 8/1/2024 AAA 580 699,068 Maui Cnty HI Ser A(15) 5.00% 3/1/2022 AAA 750 776,520 Maui Cnty HI Ser A(15) 5.75% 6/1/2016 AAA 1,035 1,165,648 Maui Cnty HI Ser A(10) 6.10% 3/1/2020 AAA 500 600,385 Municipal Secs Trust Ctfs Ser 7005 Cl B RIBs ETM+ 9.757% 10/1/2040 Aaa 1,250 1,476,600 Puerto Rico Comwlth 6.00% 7/1/2026 AAA 1,000 1,170,600 Puerto Rico Comwlth 6.50% 7/1/2023 AAA 1,250 1,320,425 Puerto Rico Comwlth Infra Fin Auth Spl Ser A ETM 5.375% 10/1/2024 AAA 300 327,225 Puerto Rico Comwlth Infra Fin Auth Spl Ser A ETM 5.50% 10/1/2032 AAA 200 218,894 Puerto Rico Ind Med & Envr Poll Ctrl St. Luke Hosp Ser A 6.25% 6/1/2010 NR 1,250 1,367,450 ------------- TOTAL 17,856,737 ------------- TRANSPORTATION 12.00% Hawaii St Hwy Rev(11) 5.50% 7/1/2020 AAA 1,100 1,192,565 HI St Hbr Cap Impt Rev AMT(10) 6.25% 7/1/2015 AAA 500 525,885 HI St Hbr Cap Impt Rev AMT(10) 6.375% 7/1/2024 AAA 500 526,150 Puerto Rico Comwlth Hwy & Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 1,000 1,058,820
SEE NOTES TO FINANCIAL STATEMENTS. 44 SCHEDULE OF INVESTMENTS (CONCLUDED) HAWAII TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Puerto Rico Comwlth Hwy & Transn Auth Rev Rites RIBs 9.853% 1/1/2010 NR $ 1,000 $ 1,160,920 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser D 5.75% 7/1/2041 A 1,000 1,080,460 Puerto Rico Comwlth Hwy & Transn Auth Transn Sub PR Rev 5.00% 7/1/2022 A- 20 20,423 Puerto Rico Comwlth Hwy Transn Auth Hwy Rev Ser Y(15)(14) 5.50% 7/1/2036 AAA 250 274,795 Puerto Rico Comwlth Hwy Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A 3,000 3,177,660 ------------- TOTAL 9,017,678 ------------- WATER/SEWER 0.14% Honolulu HI City & Cnty Brd Wtr Supply Wtr Sys Rev(11) 5.25% 7/1/2031 AAA 100 103,594 ------------- TOTAL MUNICIPAL BONDS (Cost $68,141,741) $ 73,293,352 ==============================================================================================================================
SCHEDULE OF INVESTMENTS MINNESOTA TAX-FREE FUND SEPTEMBER 30, 2003 MUNICIPAL BONDS 92.30% EDUCATION 13.04% MN St Higher Ed Fac Auth Rev Hamline Univ Ser 5-B 6.00% 10/1/2029 Baa1 500 523,515 MN St Higher Ed Fac Auth Rev Macalester College Ser 4-J 5.55% 3/1/2017 Aa3 260 282,217 MN St Higher Ed Fac Auth Rev Univ of St Thomas Ser 4-A1 5.625% 10/1/2016 A2 250 264,102 MN St Higher Ed Fac Auth Rev Univ of St Thomas Ser 4-M 5.35% 4/1/2017 A2 250 262,403 Pequot Lakes MN Indpt Sch Dist No 186(10) 5.25% 2/1/2022 AAA 1,550 1,645,372 Prior Lake MN Indpt Sch Dist No 719 Ser A(10) 5.25% 2/1/2023 Aaa 1,470 1,550,997 University MN Ser A 5.75% 7/1/2018 AA 250 298,050 ------------- TOTAL 4,826,656 ------------- GENERAL OBLIGATION 21.71% Buffalo MN Cap Impt Ser B(d)(15) 5.00% 2/1/2024 Aaa 150 153,585 Elk River MN Sch Dist(15) 5.50% 2/1/2021 Aaa 500 547,865
SEE NOTES TO FINANCIAL STATEMENTS. 45 SCHEDULE OF INVESTMENTS (CONTINUED) MINNESOTA TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Hennepin Cnty MN 4.00% 12/1/2007 AAA $ 1,000 $ 1,086,120 Lake Superior MN Indpt Sch Dist #381 Ser A(11) 5.00% 4/1/2023 Aaa 500 515,245 Medford MN Indpt Sch Dist #763 Ser A(11) 5.50% 2/1/2031 Aaa 500 537,990 Minneapolis MN Ser E 5.00% 3/1/2026 AAA 500 511,385 Minnesota St 5.25% 8/1/2014 AAA 265 280,375 Minnesota St 6.00% 11/1/2006 AAA 1,000 1,138,730 Morris MN Indp Sch Dist #769 Bldg(15) 5.00% 2/1/2028 AAA 1,000 1,022,380 North St. Paul Maplewood MN Indpt Sch Dist #622 5.125% 2/1/2025 AA+ 400 410,980 North St. Paul Maplewood MN Indpt Sch Dist #622 Ser A 5.125% 2/1/2020 AA+ 100 104,642 Princeton MN Indpt Sch Dist #477(11) 5.125% 2/1/2024 Aaa 1,000 1,035,300 Puerto Rico Comwlth Pub Impt Unrefunded-Pub Impt(15)(14) 5.00% 7/1/2028 AAA 175 178,805 Ramsey Cnty MN ST Aid Str-Ser C 5.00% 2/1/2024 AAA 500 511,950 ------------- TOTAL 8,035,352 ------------- HEALTHCARE 7.20% Bemidji Minn Hlthcare Fac North Country Health Svcs(16) 5.00% 9/1/2024 AA 1,000 1,021,590 Hastings MN Hlthcare Fac Rev Regina Med Ctr(1) 5.30% 9/15/2028 A 400 404,844 Minneapolis & St. Paul MN Hsg Redev Auth Hlthcare Sys Ser A(11) 5.70% 8/15/2016 AAA 150 161,130 Minneapolis MN Hlthcare Sys Rev(15) 5.00% 5/15/2021 AAA 250 260,875 MN Agric & Econ Dev Bd Rev Hlthcare Fairview Hosp Ser A(15) 5.50% 11/15/2017 AAA 220 240,361 Rochester MN Hlthcare Fac Rev(15)(14) 5.50% 11/15/2027 AAA 500 525,535 St. Paul MN Hsg & Redev Auth Franciscan Hlth Pj(12)(8) 5.30% 11/20/2022 AAA 50 51,970 ------------- TOTAL 2,666,305 ------------- HOUSING 17.06% Dakota Cnty MN Hsg & Redev Auth Sing Fam Mtg Rev AMT(13) 5.85% 10/1/2030 AAA 472 489,837 Eden Prairie MN Multi Fam Hsg Rev Lincoln Parc Pj Ser A-1(12)(8) 6.40% 12/20/2020 Aaa 300 328,839
SEE NOTES TO FINANCIAL STATEMENTS. 46 SCHEDULE OF INVESTMENTS (CONTINUED) MINNESOTA TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Fairbault MN Hsg & Redev Auth Govt Trails Edge Apts Ser A 5.25% 2/1/2028 A3 $ 300 $ 300,939 Minneapolis MN Multi Fam Hsg Rev Mtg East Village South(12)(8) 6.10% 7/20/2020 Aaa 1,000 1,080,140 Minneapolis MN Multifamily Rev Hsg GNMA Coll East Phillips AMT(d)(12) 5.25% 8/20/2044 Aaa 300 301,590 Minnesota St Hsg Fin Agy Residential Hsg Fin Ser F AMT 5.40% 7/1/2030 AA+ 1,500 1,533,180 Minnesota St Hsg Fin Agy Sing Fam Mtg Ser D AMT 5.85% 7/1/2019 AA+ 175 181,998 Minnesota St Hsg Fin Agy Sing Fam Mtg Ser D AMT 6.40% 7/1/2015 AA+ 135 140,061 Minnesota St Hsg Fin Agy Sing Fam Mtg Ser E 5.90% 7/1/2025 AA+ 130 133,727 Minnesota St Hsg Fin Agy Sing Fam Mtg Ser G AMT 6.25% 7/1/2026 AA+ 105 108,817 Robbinsdale MN Hsg Dev Sr Hsg Pj Ser B(10) 5.75% 1/1/2023 Aaa 250 261,565 Scott Cnty MN Hsg & Redev Savage City Hamilton Apts Pj(2) 5.60% 2/1/2019 Aaa 80 83,421 St. Louis Park MN Multi Fam Hsg Mtg Cmnty Hsg(8) 6.15% 12/1/2016 Aa2 100 105,256 St. Paul MN Hsg & Redev Auth Multifamily Hsg Rev Selby AMT(12)(8) 5.50% 9/20/2044 Aaa 750 759,742 St. Paul MN Port Auth Hsg Burlington Apt(12) 5.35% 5/1/2031 AAA 500 504,160 ------------- TOTAL 6,313,272 ------------- LEASE 5.24% Olmsted Cnty MN Hsg & Redev 5.00% 2/1/2023 AAA 275 279,700 Puerto Rico Pub Fin Corp Comwlth Approp Ser E 5.75% 8/1/2030 BBB+ 500 524,595 Rochester MN Indpt Sch Dist #535 Ctfs Partn(11) 5.125% 2/1/2020 AAA 85 90,406 St Paul MN Port Auth Lease Rev Office Bldg 5.25% 12/1/2027 AA+ 1,000 1,043,520 ------------- TOTAL 1,938,221 ------------- MISCELLANEOUS 4.29% Bemidji MN Lease Rev MN St Bureau Crim Appreh(15) 5.80% 12/1/2021 Aaa 460 510,223
SEE NOTES TO FINANCIAL STATEMENTS. 47 SCHEDULE OF INVESTMENTS (CONTINUED) MINNESOTA TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Douglas Cnty MN Hsg & Redev Governmental Hsg Ser A(15) 5.50% 1/1/2032 Aaa $ 560 $ 585,609 Minnesota St Retirement Sys Bldg Rev 6.00% 6/1/2030 AAA 250 283,027 St. Cloud MN Ctfs Partn 5.90% 12/1/2017 A+ 200 207,696 ------------ TOTAL 1,586,555 ------------ POWER 9.64% Chaska MN Elec Rev Ser A 6.00% 10/1/2025 A3 250 267,340 Puerto Rico Elec Pwr Auth Rev Ser DD(11) 4.50% 7/1/2019 AAA 95 97,270 Rochester MN Elec Util Rev(2)(17) 5.25% 12/1/2030 AAA 1,000 1,046,040 South MN Muni Agy Supply Sys Rev Ser A(15) Zero Coupon 1/1/2021 AAA 1,135 504,303 Western MN Mun Pwr Agy Pj Ser A(2) 5.50% 1/1/2016 Aaa 565 632,885 Western MN Muni Pwr Agy(15) 5.00% 1/1/2026 Aaa 1,000 1,022,210 ------------- TOTAL 3,570,048 ------------- PRE-REFUNDED 5.77% Minneapolis MN Spl Sch Dist #001(10) 5.375% 2/1/2014 AAA 250 253,340 Minneapolis MN Spl Sch Dist #001 Ctfs Partn 5.75% 2/1/2015 AA+ 100 115,111 Minneapolis MN Spl Sch Dist #001 Ctfs Partn 5.75% 2/1/2017 AA+ 1,120 1,289,243 Minnesota Pub Fac Auth Wtr Poll Ctrl Rev Ser A 6.25% 3/1/2016 AAA 100 107,337 Puerto Rico Comwlth Pub Impt Prerefunded-Pub Impt(15)(14) 5.00% 7/1/2028 AAA 325 371,394 ------------- TOTAL 2,136,425 ------------- TRANSPORTATION 8.35% Minneapolis & St. Paul MN Met Comm Arpt Rev Sub Ser C(10) 5.25% 1/1/2026 AAA 2,000 2,063,020 Minneapolis & St. Paul MN Met Sub Ser A(15) 5.00% 1/1/2023 AAA 1,000 1,028,260 ------------- TOTAL 3,091,280 ------------- TOTAL MUNICIPAL BONDS (Cost $32,576,883) $ 34,164,114 ==============================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 48 SCHEDULE OF INVESTMENTS MISSOURI TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS 98.15% EDUCATION 7.65% Bowling Green MO Sch Dist R-I Bldg Corp Leasehold Rev(15) 5.85% 3/1/2020 Aaa $ 1,000 $ 1,124,100 Kansas Cnty MO Met Cmnty Colleges Bldg Corp Rev Ref(10) 5.00% 7/1/2021 Aaa 1,000 1,046,300 Mehville MO Sch Dist #R9 Ctfs Partn MO Cap Impt(11) 5.25% 9/1/2013 AAA 1,000 1,131,310 Missouri St Hlth & Ed Fac Auth Ref Washington Univ Ser B 5.00% 3/1/2030 AA+ 1,800 1,822,158 Missouri St Hlth & Ed Fac Auth Washington Univ Ser A 4.75% 11/15/2037 AA+ 2,050 2,009,164 Missouri St Hlth & Ed Fac Auth Webster Univ(15) 5.25% 4/1/2021 Aaa 2,000 2,128,540 University MO Univ Rev Ref-Sys Facs-Ser B(15)(14) 5.00% 11/1/2027 AAA 1,500 1,524,855 University MO Univ Rev Sys Fac 5.50% 11/1/2017 AA+ 950 962,141 ------------- TOTAL 11,748,568 ------------- GENERAL OBLIGATION 20.28% Belton MO Sch Dist No 124 MO Direct Deposit Prog(11) 6.00% 3/1/2020 AAA 1,770 2,026,455 Boone Cnty MO Reorg Sch Dist #R-6 6.00% 3/1/2020 AA+ 500 570,905 Franklin Cnty MO Reorg Sch Dist # R-XV 6.00% 3/1/2020 AA+ 390 445,306 Hazelwood MO Sch Dist Impt-Mo Direct Deposit PG 5.25% 3/1/2020 Aaa 630 682,492 Ladue MO Sch Dist 5.25% 3/1/2016 AAA 2,180 2,369,878 Puerto Rico Comwlth Pub Impt Pub Impt-Ser A(15)(14) 5.50% 7/1/2029 AAA 1,000 1,146,470 Puerto Rico Comwlth Pub Impt Pub Impt-Ser B(10) 5.50% 7/1/2011 AAA 3,985 4,632,841 Puerto Rico Comwlth Pub Impt Ref Pub Impt Ser C(11) 5.00%# 7/1/2021 AAA 3,000 3,370,620 Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 A- 3,595 3,644,036 Springfield MO Sch Dist #R12 Direct Deposit Prog 5.85% 3/1/2020 AA+ 500 562,355 St. Louis Cnty MO Pattonville #R-3 Sch Dist(10) 6.00% 3/1/2019 AAA 845 976,854 St. Louis Cnty MO Sch Dist #R-8 Lindbergh(15) Zero Coupon 3/1/2017 AAA 2,940 1,642,196
SEE NOTES TO FINANCIAL STATEMENTS. 49 SCHEDULE OF INVESTMENTS (CONTINUED) MISSOURI TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ St. Louis Cnty MO Sch Dist #R-8 Lindbergh(15) Zero Coupon 3/1/2018 AAA $ 3,015 $ 1,598,945 St. Louis MO Brd Ed MO Direct Dep Prog-Ser A 5.25% 4/1/2019 AA+ 2,975 3,233,884 St. Louis MO Pub Safety(10) 5.125% 2/15/2018 AAA 270 289,229 University City MO Sch Dist(15) 10.00% 2/15/2008 AAA 1,175 1,548,204 Wentzville MO Sch Dist No R 04 Ser A(10) 4.50% 3/1/2023 Aaa 2,400 2,384,544 ------------- TOTAL 31,125,214 ------------- HEALTHCARE 8.87% Cape Girardeau Cnty MO Ind Dev Auth Health Care Facs Rev 5.75% 6/1/2032 A-(c) 1,900 1,940,090 Hannibal MO Ind Dev Auth Hlth Fac Rev Regl Hosp Ser A(11) 5.625% 3/1/2012 AAA 2,170 2,384,179 Missouri St Hlth & Ed Fac Auth BJC Hlth 5.25% 5/15/2032 AA 5,000 5,144,250 Missouri St Hlth & Ed Fac Auth Rev(2) 5.25% 6/1/2028 AAA 2,000 2,058,740 Missouri St Hlth & Ed Fac Auth Rites PA-1049 RIBs(2) 16.885% 6/1/2010 AAA 855 1,063,603 North Kansas City MO Hosp Rev North Kans City Hosp- Ser A(11) 5.125% 11/15/2033 AAA 1,000 1,016,930 ------------- TOTAL 13,607,792 ------------- HOUSING 5.63% MO St Dev Fin Brd Multi Fam Rev Quality Hill Pj Ser A(16) 5.60% 9/15/2028 AA 2,115 2,160,303 MO St Dev Fin Brd Solid Waste Disp Rev P & G Paper Pj AMT 5.20% 3/15/2029 AA- 1,000 1,056,870 MO St Hsg Dev Cmnty Mtg Rev Sing Fam Mtg AMT(12)(8) 6.22% 3/1/2026 AAA 2,735 2,825,611 MO St Hsg Dev Cmnty Mtg Rev Sing Fam Mtg Rev AMT(13) 5.375% 9/1/2022 AAA 1,915 1,980,340 MO St Hsg Dev Cmnty Mtg Rev Sing Fam Mtg Ser A AMT(12) 6.75% 6/1/2024 AAA 105 105,724 MO St Hsg Dev Cmnty Mtg Rev Sing Fam Ser E-1 AMT(13) Zero Coupon 3/1/2029 AAA 2,110 507,117 ------------- TOTAL 8,635,965 ------------- LEASE 5.52% Gladstone MO Ctfs Partn Ser A(2) 5.35% 6/15/2016 Aaa 1,095 1,204,018
SEE NOTES TO FINANCIAL STATEMENTS. 50 SCHEDULE OF INVESTMENTS (CONTINUED) MISSOURI TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Grandview MO Ctfs Partn(10) 5.00% 1/1/2027 Aaa $ 2,500 $ 2,546,150 MO Dev Fin Brd Cultural Facs Nelson Gallery Fndtn Ser A(15) 5.00% 12/1/2030 AAA 4,650 4,730,724 ------------- TOTAL 8,480,892 ------------- MISCELLANEOUS 16.31% BI State Dev Agy MO Met Dist Metrolink Cross Cnty Proj-B(11) 5.00% 10/1/2032 AAA 5,000 5,070,700 Kansas City MO Muni Assistance Corp Rev Leasehold-Ser 2001A(2) 5.00% 3/1/2019 AAA 1,500 1,591,635 Kansas City MO Muni Assistance Corp Rev Ser A 5.125% 3/1/2019 A2 1,100 1,172,391 Kansas City MO Muni Assistance Leasehold Bartle(15) 5.00% 4/15/2020 AAA 1,500 1,553,745 Missouri St Brd Pub Bldgs Spl Ser A 5.00% 10/15/2027 AA+ 3,000 3,056,850 MO Dev Fin Brd Cultural Facs Nelson Gallery(15) 5.25% 12/1/2013 AAA 2,305 2,583,882 MO St Ctfs Partn Bonne Terre Prison Pj Ser A(2) 5.15% 6/1/2018 AAA 1,015 1,086,293 MO St Dev Fin Brd Infra Fac Rev Hartman Hrtge Ctr Ser A(2) 5.875% 4/1/2020 Aaa 1,000 1,120,960 Puerto Rico Pub Bldg Auth Rev Gtd Govt Fac Ser D 5.25% 7/1/2036 A- 1,250 1,274,475 Puerto Rico Pub Bldg Auth Rev Ref-Govt Facs-Ser C 5.75% 7/1/2018 A- 1,000 1,148,760 St Louis MO Mun Fin Corp Lease Carnahan Courthouse-Ser A(10) 5.125% 2/15/2027 Aaa 1,500 1,538,370 St Louis MO Mun Fin Corp Lease Impt City Justice Ctr Ser A(2) 6.00% 2/15/2020 Aaa 760 873,187 St. Louis MO Ind Dev Auth Rev Convention Ctr Hotel(2) Zero Coupon 7/15/2020 AAA 2,000 914,100 St. Louis MO Ind Dev Auth Rev Kiel Ctr Multi Purp Arena AMT 7.875% 12/1/2024 BB+(b) 2,000 2,055,680 ------------- TOTAL 25,041,028 ------------- POWER 1.33% Puerto Rico Elec Pwr Auth Pwr Rev Ser NN(15) 5.00% 7/1/2032 AAA 500 512,765 Puerto Rico Elec Pwr Auth Pwr Rev Ser NN 5.125% 7/1/2029 A- 1,500 1,525,785 ------------- TOTAL 2,038,550 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 51 SCHEDULE OF INVESTMENTS (CONTINUED) MISSOURI TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ PRE-REFUNDED 17.86% Clay Cnty MO Pub Bldg Auth Leasehold Rev(10) 7.00% 5/15/2014 AAA $ 1,000 $ 1,037,410 Missouri Sch Brds Assoc Lease Partn NIXA Reorg Sch Dist R-2(16) 5.40% 3/1/2020 AA 850 916,784 Missouri St Envr Impt & Enrg Prerefunded St Revolv FD Ser B 7.20% 7/1/2016 Aaa 1,130 1,205,134 Missouri St Envr Impt & Enrg Prerefunded St Revolving FD-D 5.90% 1/1/2019 Aaa 1,860 2,067,557 Missouri St Envr Impt & Enrg Prerefunded St Revolving FD-E 5.625% 7/1/2016 Aaa 630 715,743 Missouri St Hlth & Ed Fac Auth BJC Hlth Sys Ser A ETM 6.50% 5/15/2020 Aa2 4,900 5,148,381 Missouri St Hlth & Ed Fac Auth St Louis Univ High Sch 6.35% 10/1/2014 A2 1,750 1,860,653 Missouri St Hlth & Ed Fac Auth Washington Univ Ser A 6.00% 3/1/2030 Aaa 850 1,012,945 Municipal Secs Trust Ctfs Ser 7005 Cl B RIBs ETM+ 9.757% 10/1/2040 Aaa 3,050 3,602,904 Puerto Rico Comwlth Ser A ETM 5.50% 10/1/2040 AAA 2,700 2,944,728 St Louis MO Mun Fin Corp Lease Rev City Justice Ctr Ser A(2) 6.00% 2/15/2019 AAA 3,500 3,951,745 St. Louis MO Pkg Fac Rev ETM(15) 5.375% 12/15/2021 AAA 10 10,866 St. Louis MO Sch Dist(10) 6.00% 4/1/2012 AAA 645 647,012 University MO Univ Rev Sys Facs 5.80% 11/1/2027 AA+ 1,975 2,296,649 ------------- TOTAL 27,418,511 ------------- RESOURCE RECOVERY 2.15% Missouri St Envr Impt & Enrg Unrefunded Bal St Revolving A 6.55% 7/1/2014 Aaa 560 567,084 Missouri St Envr Impt & Enrg Unrefunded Bal St Revolving B 7.20% 7/1/2016 Aaa 1,120 1,188,936 Missouri St Envr Impt & Enrg Unrefunded Bal St Revolving D 5.625% 7/1/2016 Aaa 220 243,769 Missouri St Envr Impt & Enrg Unrefunded Bal St Revolving E 5.90% 1/1/2019 Aaa 240 262,397 St. Louis MO Ind Dev Auth Anheuser-Busch Pj AMT 5.875% 11/1/2026 A+ 1,005 1,032,185 ------------- TOTAL 3,294,371 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 52 SCHEDULE OF INVESTMENTS (CONTINUED) MISSOURI TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION 10.55% Columbia MO Spl Oblig Cap Impt 5.50% 2/1/2016 AA- $ 330 $ 355,585 Missouri St Hwy & Trans Comm Ser A 5.00% 2/1/2021 AA 1,680 1,755,499 Missouri St Hwy & Trans Comm St Rd Rev Ser A 5.00% 2/1/2022 AA 1,970 2,045,983 Missouri St Hwy & Trans Comm St Rd Rev Ser A 5.25% 2/1/2020 AA 1,830 1,957,148 Puerto Rico Comwlth Hwy & Ser E(11) 5.50% 7/1/2013 AAA 750 874,927 Puerto Rico Comwlth Hwy & Transn Auth Rev Rites RIBs 9.853% 1/1/2010 NR 2,500 2,902,300 St. Louis MO Arpt Rev Airport Dev Prog Ser A(15) 5.25% 7/1/2031 AAA 2,000 2,060,100 St. Louis MO Arpt Rev Airport Ser A(15) 5.125% 7/1/2022 AAA 2,000 2,083,500 St. Louis MO Arpt Rev Cap Impt Prog-Ser A(15) 5.00% 7/1/2032 AAA 1,500 1,521,105 St. Louis MO Arpt Rev Lambert Intl Ser B AMT(10) 5.25% 7/1/2027 AAA 625 633,913 ------------- TOTAL 16,190,060 ------------- WATER/SEWER 2.00% St. Charles Cnty MO Pub Wtr Supply Dist #2 Ctfs Partn(15) 5.125% 12/1/2027 Aaa 3,000 3,075,180 ------------- TOTAL MUNICIPAL BONDS (Cost $142,763,494) $ 150,656,131 ============================================================================================================================== SCHEDULE OF INVESTMENTS NEW JERSEY TAX-FREE FUND SEPTEMBER 30, 2003 MUNICIPAL BONDS 99.52% EDUCATION 15.91% Higher Ed Student Assist Auth NJ Student Loan Rev Ser A AMT(15) 6.15% 6/1/2019 AAA 960 1,028,160 New Jersey St Ed Fac Auth Rev Higher Ed Cap Impt-Ser A(2) 5.25% 9/1/2019 AAA 2,000 2,165,520 New Jersey St Ed Fac Auth Rev Princeton Ser B 5.125% 7/1/2019 AAA 355 376,602 New Jersey St Ed Fac Auth Rev Princeton Ser H 5.25% 7/1/2017 AAA 700 765,072 New Jersey St Ed Fac Auth Rev Princeton Ser H 5.25% 7/1/2022 AAA 2,560 2,705,510
SEE NOTES TO FINANCIAL STATEMENTS. 53 SCHEDULE OF INVESTMENTS (CONTINUED) NEW JERSEY TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ New Jersey St Ed Fac Auth Rev Princeton Ser H 5.25% 7/1/2026 AAA $ 2,350 $ 2,436,151 New Jersey St Ed Fac Auth Rev Princeton Ser H 5.375% 7/1/2024 AAA 2,550 2,701,190 New Jersey St Ed Fac Auth Rev Ser H-Ramapo Clg Of NJ(10) 5.00% 7/1/2019 AAA 1,875 1,986,525 New Jersey St Ed Fac Auth Rev Wm Paterson Ser E(18) 5.00% 7/1/2027 AAA 2,500 2,547,700 New Jersey St Edl Facs Auth Kean Univ Ser D(10) 5.00% 7/1/2033 AAA 2,500 2,540,325 New Jersey St Edl Facs Auth Princeton Theological Seminary 5.00% 7/1/2026 AAA 2,500 2,565,800 Rutgers St Univ NJ Ser A 5.20% 5/1/2027 AA 750 764,497 Rutgers St Univ NJ Ser B(10) 4.75% 5/1/2034 AAA 1,395 1,375,024 University Medicine & Dentist NJ CTFS Partn(2) 5.00% 4/15/2025 AAA 500 511,410 ------------- TOTAL 24,469,486 ------------- GENERAL OBLIGATION 16.63% Chatham Dist NJ Brd Ed(15) 5.00% 1/15/2019 Aaa 1,020 1,073,295 Chatham Dist NJ Brd Ed(15) 5.125% 1/15/2024 Aaa 595 612,618 Chatham Dist NJ Brd Ed(15) 5.25% 1/15/2026 Aaa 1,500 1,554,960 Millburn Township NJ Sch Dist 5.35% 7/15/2018 Aa1 1,050 1,219,764 Millburn Township NJ Sch Dist 5.35% 7/15/2019 Aa1 250 289,200 Montville Township NJ Fire Dist No 23 5.25% 7/15/2016 A2 410 460,438 Morristown NJ(11) 6.50% 8/1/2019 AAA 3,440 3,805,844 New Jersey St Var Purp Ref-Ser J(15)(14) 5.00% 7/15/2009 AAA 3,500 3,958,255 Ocean Cnty NJ Gen Impt 5.125% 9/1/2020 Aa1 1,800 1,920,240 Paterson NJ(11) 9.30% 2/15/2004 AAA 4,200 4,326,210 Pohatcong Township NJ Sch Dist(11) 5.25% 7/15/2026 AAA 1,335 1,450,664 Puerto Rico Comwlth Pub Impt(11)(6) 4.50% 7/1/2023 AAA 1,000 1,001,670 Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 A- 1,840 1,865,098 Washington Township NJ Brd Ed(10) 5.00% 1/1/2027 Aaa 2,000 2,039,100 ------------- TOTAL 25,577,356 ------------- HEALTHCARE 7.35% NJ Econ Dev Auth Rev Masonic Charity Fndtn Pj 6.00% 6/1/2025 A+ 1,000 1,090,000
SEE NOTES TO FINANCIAL STATEMENTS. 54 SCHEDULE OF INVESTMENTS (CONTINUED) NEW JERSEY TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ NJ Hlthcare Fac Fin Auth Rev Bayonne Hosp(11) 6.25% 7/1/2012 AAA $ 1,370 $ 1,444,309 NJ Hlthcare Fac Fin Auth Rev Mtg Englewood Hosp(15)(8) 5.25% 8/1/2013 AAA 1,445 1,623,877 NJ Hlthcare Fac Fin Auth Rev Robert Wood Johnson Univ Hosp 5.75% 7/1/2031 A+ 3,500 3,703,805 NJ Hlthcare Fac Fin Auth Rev Spectrum For Living Ser B(8) 6.50% 2/1/2022 AAA 795 810,065 Puerto Rico Ind Tourist Ed Med & Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2030 AA 1,000 1,097,560 Puerto Rico Ind Tourist Ed Med Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2025 AA 415 456,815 Puerto Rico Ind Tourist Ed Med Mutuo Oblig Grp Ser A(15) 6.25% 7/1/2024 AAA 1,000 1,076,910 ------------- TOTAL 11,303,341 ------------- HOUSING 0.11% Virgin Islands Hsg Fin Auth Sing Fam Rev Ser A AMT(12) 6.50% 3/1/2025 AAA 165 170,714 ------------- INDUSTRIAL 5.03% New Jersey Economic Dev Auth Amer Wtr Co Inc Ser B AMT(10) 5.375% 5/1/2032 AAA 5,000 5,171,700 New Jersey Economic Dev Auth Middlesex Wtr Co Pj AMT(15) 5.35% 2/1/2038 AAA 2,500 2,564,500 ------------- TOTAL 7,736,200 ------------- LEASE 1.66% Monmouth Cnty NJ Impt Auth Rev Govtl Ln(11) 5.00% 12/1/2021 AAA 500 523,540 Union Cnty Impt Auth Rev Lease Madison Redev(11) 5.00% 3/1/2034 Aaa 2,000 2,023,880 ------------- TOTAL 2,547,420 ------------- MISCELLANEOUS 7.01% Carteret NJ Brd Ed Ctfs Partn(15) 5.75% 1/15/2030 Aaa 80 88,048 Carteret NJ Brd Ed Ctfs Partn(15) 6.00% 1/15/2024 Aaa 430 491,503 Casino Reinvestment Dev Ath NJ Ser A(11) 5.25% 10/1/2015 AAA 100 109,594 Hudson Cnty NJ Impt Auth Hudson Regl Fire/Rescue Ser A(2) 5.625% 9/1/2019 Aaa 100 111,163
SEE NOTES TO FINANCIAL STATEMENTS. 55 SCHEDULE OF INVESTMENTS (CONTINUED) NEW JERSEY TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Middlesex Cnty NJ Impt Auth Cnty-Gtd Open Space Tr Fd 5.25% 9/15/2022 AAA $ 1,910 $ 2,044,407 Middlesex Cnty NJ Impt Auth Rev Cnty-Gtd Open Space Tr Fd 5.25% 9/15/2021 AAA 2,000 2,157,480 Monmouth Cnty NJ Impt Auth Rev Unrefunded Bal Govtl Ln(15) 6.40% 12/1/2009 AAA 195 209,572 New Jersey Econ Dev Auth Rev Mun Rehab(2) 5.00% 4/1/2028 AAA 1,600 1,631,504 NJ Envr Infrastructure 5.25% 9/1/2020 AAA 2,000 2,148,480 North Bergen Twp NJ Brd Ed CTFS Partn(11) 6.125% 12/15/2022 Aaa 1,185 1,383,203 Rahway NJ Ctfs Partn(15) 5.625% 2/15/2020 Aaa 365 403,248 ------------- TOTAL 10,778,202 ------------- POWER 3.32% Brick Twp NJ Muni Util Auth(10) 5.00% 12/1/2025 Aaa 2,000 2,044,120 Puerto Rico Elec Pwr Auth Pwr Rev Ser NN(15) 5.00% 7/1/2032 AAA 2,000 2,051,060 Puerto Rico Elec Pwr Auth Pwr Rev Ser NN 5.125% 7/1/2029 A- 1,000 1,017,190 ------------- TOTAL 5,112,370 ------------- PRE-REFUNDED 16.62% Essex Cnty NJ Impt Auth Rev Orange Muni Util & Lease(15) 6.80% 7/1/2014 AAA 1,710 1,914,670 LaFayette Yard NJ Cmnty Dev(15) 5.625% 4/1/2021 Aaa 200 235,008 Monmouth Cnty NJ Impt Auth Rev Prerefuned-Govtl Ln(15) 6.40% 12/1/2009 AAA 880 952,644 Municipal Secs Trust Ctfs Ser 7005 Cl B RIBs ETM+ 9.757% 10/1/2040 Aaa 1,000 1,181,280 New Jersey St Hwy Auth Garden St Pkwy Gen Rev(10) 5.75% 1/1/2015 AAA 200 235,257 NJ Bldg Auth St Bldg Rev 5.375% 6/15/2019 AA- 450 520,127 NJ Bldg Auth St Bldg Ser A(11) 5.25% 12/15/2019 AAA 1,000 1,146,750 NJ Hlthcare Fac Fin Auth Rev Bayonne Hosp Oblig(11) 6.25% 7/1/2012 AAA 230 243,676 NJ St Transn Tr Fd Auth Transn Sys Ser B 6.00% 6/15/2019 AA- 6,500 7,762,365 Pohatcong Township NJ Sch Dist(11) 5.95% 7/15/2023 AAA 650 745,271 Pohatcong Township NJ Sch Dist(11) 5.95% 7/15/2026 AAA 250 286,643 Puerto Rico Comwlth Pub Impt RIBs 10.54% 7/1/2029 A- 750 891,330
SEE NOTES TO FINANCIAL STATEMENTS. 56 SCHEDULE OF INVESTMENTS (CONTINUED) NEW JERSEY TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Puerto Rico Elec Pwr Auth Ser T RIBs(11) 11.486% 7/1/2018 AAA $ 7,000 $ 7,826,630 South Brunswick Township NJ(10) 5.625% 12/1/2023 AAA 45 52,898 Summit NJ 5.70% 6/1/2020 AAA 325 380,881 Trenton NJ Pkg Auth Pkg Rev(10) 6.00% 4/1/2017 Aaa 1,000 1,188,820 ------------- TOTAL 25,564,250 ------------- RESOURCE RECOVERY 0.35% Cape May Cnty NJ Ind Poll Ctrl Fin Auth Rev Atlan City Ser B(15) 7.00% 11/1/2029 AAA 500 538,955 ------------- SPECIAL TAX 1.97% New Jersey St Var Purp Tax & Rev Antic Nts 2.00% 6/25/2004 MIG1 3,000 3,022,350 ------------- TRANSPORTATION 21.35% Delaware Riv & Bay Auth Rev(15) 5.00% 1/1/2033 AAA 1,000 1,018,460 Delaware River Port Auth PA & NJ Ref Port Dist Pj Ser B(11) 5.10% 1/1/2021 AAA 1,435 1,514,901 Delaware River Port Auth PA & NJ Ref Port Dist Pj Ser B(11) 5.20% 1/1/2025 AAA 1,700 1,770,397 Delaware River Port Auth PA & NJ Rev(10) 5.50% 1/1/2026 AAA 1,000 1,061,930 New Jersey St Tpk Auth Rev Ser A(2) 5.00% 1/1/2030 AAA 3,500 3,561,915 New Jersey St Tpk Auth Rev Ser A 5.50% 1/1/2027 A 3,000 3,141,570 New Jersey St Tpk Auth Rev Ser A(15) 5.50% 1/1/2030 AAA 1,500 1,605,180 Port Auth NY & NJ(11) 5.00% 4/15/2032 AAA 5,125 5,230,113 Port Auth NY & NJ Cons 109th Ser 5.375% 1/15/2032 AA- 500 513,030 Port Auth NY & NJ Cons 119th Ser AMT(10) 5.50% 9/15/2019 AAA 150 159,647 Port Auth NY & NJ Cons 125th Ser(11) 5.00% 10/15/2027 AAA 5,000 5,127,600 Puerto Rico Comwlth Hwy & Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 1,000 1,058,820 Puerto Rico Comwlth Hwy & Transn Auth Rev Rites RIBs 9.853% 1/1/2010 NR 2,750 3,192,530 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser PMD RIBs(11)(6) 10.68% 7/1/2026 Aaa 500 589,650 Puerto Rico Comwlth Hwy & Transn Auth Ser B(15)(14) 6.00% 7/1/2026 AAA 3,015 3,285,295 ------------- TOTAL 32,831,038 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 57 SCHEDULE OF INVESTMENTS (CONTINUED) NEW JERSEY TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ WATER/SEWER 2.21% Middlesex Cnty NJ Impt Auth Util Sys Rev Cap Apprec Ser B(2) Zero Coupon 9/1/2023 AAA $ 3,000 $ 1,100,610 North Hudson Swr Auth NJ Rev Ser C(15) 5.00% 8/1/2022 Aaa 1,025 1,060,485 Ocean Twp NJ Swr Auth Ref Ser B(10) 5.25% 12/1/2011 Aaa 170 194,849 Passaic Valley NJ Sew Commrs Swr SYs-Ser F(10) 5.00% 12/1/2020 Aaa 1,000 1,050,350 ------------- TOTAL 3,406,294 ------------- TOTAL MUNICIPAL BONDS (Cost $143,721,432) $ 153,057,976 ------------- ------------------------------------------------------------------------------------------------------------------------------ SCHEDULE OF INVESTMENTS NEW YORK TAX-FREE FUND SEPTEMBER 30, 2003 MUNICIPAL BONDS 99.14% EDUCATION 9.31% Geneva NY Indl Dev Agy Civic Fac Rev Hobart & William Smith(10) 4.25% 2/1/2017 AAA 370 376,549 Hempstead Town NY Ind Dev Agy Civic Fac Rev Hofstra Univ Pj(15) 5.80% 7/1/2015 AAA 750 838,627 New York NY City Ind Dev Agy NY Institute of Tech(15) 5.25% 3/1/2023 AAA 100 105,385 New York St Dorm Auth Lease Rev Court Fac Zero Coupon 8/1/2021 AA+ 3,600 1,572,588 New York St Dorm Auth Lease St Univ 5.375% 7/1/2022 AA- 1,000 1,061,860 New York St Dorm Auth Lease St Univ Dorm Facs Ser A 6.00% 7/1/2030 AA- 3,500 3,972,290 New York St Dorm Auth Lease St Univ Dorm Facs Ser A 6.25% 7/1/2020 AA- 1,250 1,462,263 New York St Dorm Auth Rev 4201 Schools Program 6.25% 7/1/2020 AA- 1,685 1,965,620 New York St Dorm Auth Rev Colgate Univ(15) 6.00% 7/1/2016 AAA 1,000 1,219,410 New York St Dorm Auth Rev New York Univ Ser A(2) 5.75% 7/1/2015 AAA 2,000 2,377,040 New York St Dorm Auth Rev Pace Univ(15) 6.00% 7/1/2029 AAA 1,610 1,837,557 New York St Dorm Auth Rev Pratt Institute(16) 6.00% 7/1/2024 AA 1,000 1,130,290
SEE NOTES TO FINANCIAL STATEMENTS. 58 SCHEDULE OF INVESTMENTS (CONTINUED) NEW YORK TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ New York St Dorm Auth Rev Pratt Institute(16) 6.00% 7/1/2028 AA $ 2,000 $ 2,259,460 New York St Dorm Auth Rev Sp Act Sch Dist Pj(15) 6.00% 7/1/2016 AAA 1,400 1,536,598 New York St Dorm Auth Rev Upstate Cmnty Colleges Ser A(11) 6.00% 7/1/2015 AAA 300 354,603 Rensselaer Cnty NY Ind Dev Polytech Inst Ser B(2)(17) 5.50% 8/1/2022 AAA 200 218,560 Schenectady NY Ind Dev Agy Civic Fac Rev Union College(2) 5.625% 7/1/2031 Aaa 1,500 1,615,875 St. Lawrence Cnty NY Ind Civic Fac Rev Clarkson Univ Proj 5.125% 7/1/2021 A3 250 261,418 ------------- TOTAL 24,165,993 ------------- GENERAL OBLIGATION 10.96% Bethlehem NY AMT(15) 7.20% 3/1/2022 AAA 1,080 1,175,224 Erie Cnty NY Indl Dev Agy Schfac Rev City of Buffalo Pj(11) 5.75% 5/1/2023 AAA 1,250 1,387,350 New York NY 5.625% 3/15/2020 A 1,000 1,068,180 New York NY Ref - Ser B 5.75% 8/1/2016 A 1,000 1,103,970 New York NY Ser A(10)(17) 6.00% 5/15/2030 AAA 5,000 5,528,500 New York NY Ser C(11) 5.75% 3/15/2027 AAA 5,000 5,520,200 New York St Urban Dev Corp Rev Personal Income Tax Ser C 5.00% 3/15/2033 AA 185 186,241 New York NY City Transitional Fin Auth Future Tax Secd-Ser D(15) 5.00% 2/1/2022 AAA 5,000 5,176,850 Puerto Rico Comwlth Pub Impt 5.25% 7/1/2018 A- 2,000 2,189,680 Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- 1,500 1,512,570 Puerto Rico Comwlth Pub Impt Ser A(10) 5.00% 7/1/2032 AAA 1,250 1,278,350 Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 1,645 1,706,523 Puerto Rico Comwlth Pub Impt Unrefunded-Pub Impt(15)(14) 5.00% 7/1/2028 AAA 605 618,153 ------------- TOTAL 28,451,791 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 59 SCHEDULE OF INVESTMENTS (CONTINUED) NEW YORK TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE 8.13% Cortland Cnty NY Ind Dev Agy Cortland Mem Hosp Pj(16) 5.625% 7/1/2024 AA $ 1,750 $ 1,856,977 New York NY City Hlth & Hosp Corp Rev Health Sys-Ser A(2) 5.25% 2/15/2022 AAA 3,000 3,163,230 New York NY City Ind Dev Agy Rev Harbor House Pj A(12) 5.875% 5/20/2044 AAA 610 668,133 New York St Dorm Auth Rev Insd NY St Rehab Assn Ser A(2) 5.50% 7/1/2016 AAA 935 1,061,449 New York St Dorm Auth Rev Lenox Hill Hosp Oblig Group 5.375% 7/1/2020 A3 1,000 1,037,700 New York St Dorm Auth Rev Mental Hlth Svc Fac(15)(14) 6.00% 8/15/2012 AAA 1,460 1,731,210 New York St Dorm Auth Rev Mental Hlth Svc Fac Impt Ser B(15) 6.00% 2/15/2025 AAA 1,000 1,126,940 New York St Dorm Auth Rev Mental Hlth Svc Fac Impt Ser B(15) 6.00% 2/15/2030 AAA 1,000 1,173,730 New York St Dorm Auth Rev Mental Hlth Svc Fac Ser D(15)(14) 6.00% 8/15/2021 AAA 1,000 1,114,120 New York St Dorm Auth Rev Mtg Nursing Home A(8)(15) 5.40% 2/1/2031 AAA 300 311,556 New York St Dorm Auth Rev Mtg Nursing Home A(8)(15) 5.50% 8/1/2030 AAA 1,000 1,071,020 New York St Dorm Auth Rev Mtg Nursing Home A(8)(15) 5.50% 8/1/2038 AAA 1,000 1,064,620 New York St Dorm Auth Rev Utd Cerebral Palsy Aff #1-A(2) 5.75% 7/1/2018 AAA 1,000 1,148,640 New York St Dorm Auth Revs Mem Sloan Kettering Ctr Ser 1(15) 5.00% 7/1/2024 AAA 2,500 2,532,550 New York St Dorm Auth Revs Mem Sloan Kettering CTR-Ser 1 5.00% 7/1/2034 AA 2,000 2,021,380 ------------- TOTAL 21,083,255 ------------- HOUSING 1.96% New York City Hsg Dev Corp Multifamily Hsg Rev Ser A AMT 5.50% 11/1/2034 AA 1,500 1,537,005
SEE NOTES TO FINANCIAL STATEMENTS. 60 SCHEDULE OF INVESTMENTS (CONTINUED) NEW YORK TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ New York St Dorm Auth Lease Rev Court Facs Zero Coupon 8/1/2022 AA+ $ 480 $ 195,792 New York St Dorm Auth Lease Rev Court Facs Ser A 5.50% 5/15/2020 A 1,180 1,270,270 New York St Dorm Auth Revs Insd Jewish Brd Fam & Children(d)(2) 5.00% 7/1/2023 AAA 500 513,945 New York St Mtg Agy Rev Home Owner Mtg Ser 70 5.40% 4/1/2022 Aa1 70 72,499 Puerto Rico Hsg Fin Auth Home Mtg Rev AMT-Mtg Bkd Secs-Ser A 4.875% 6/1/2034 AAA 1,500 1,502,190 ------------- TOTAL 5,091,701 ------------- INDUSTRIAL 0.43% New York Ind Dev Agy Pkg Royal Charter Properties, Inc.(11) 5.75% 12/15/2029 AAA 1,000 1,109,670 ------------- LEASE 2.45% New York St Urban Dev Corp Rev St Fac 5.70% 4/1/2020 AA- 4,150 4,772,749 Puerto Rico Pub Fin Corp Comwlth Approp Ser E 5.75% 8/1/2030 BBB+ 1,500 1,573,785 ------------- TOTAL 6,346,534 ------------- MISCELLANEOUS 4.22% New York NY City Transitional Fin Auth Rev Ser A 5.00% 11/15/2026 AA+ 730 738,490 New York NY City Tr Cultr Res Rev Museum of American Art(1) 6.00% 7/1/2022 A 500 545,960 New York NY City Transitional Fin Future Tax Secd-Ser E(15) 5.25% 2/1/2022 AAA 2,000 2,124,080 Puerto Rico Pub Bldg Auth Rev Govt Fac 5.00% 7/1/2026 A- 2,000 2,018,180 Puerto Rico Pub Bldg Auth Rev Govt Fac Ser D 5.25% 7/1/2027 A- 1,000 1,026,000 Puerto Rico Pub Fin Corp Comwlth Approp Ser E 5.50% 8/1/2029 BBB+ 2,250 2,372,715 Puerto Rico Pub Fin Corp Comwlth Approp Ser E 5.70% 8/1/2025 BBB+ 2,000 2,136,420 ------------- TOTAL 10,961,845 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 61 SCHEDULE OF INVESTMENTS (CONTINUED) NEW YORK TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ POWER 7.30% NY St Enrg Res & Dev Auth Fac Rev Con Edison Inc Ser A AMT(15)(14) 7.125% 12/1/2029 AAA $ 2,500 $ 2,693,875 NY St Enrg Res & Dev Auth Gas Fac Rev Brklyn Ser B RIBs AMT 12.504% 7/1/2026 A+ 4,000 4,981,160 Puerto Rico Elec Pwr Auth Pwr Rev Ser NN(15) 5.00% 7/1/2032 AAA 1,500 1,538,295 Puerto Rico Elec Pwr Auth Pwr Rev Ser NN 5.125% 7/1/2029 A- 3,000 3,051,570 Puerto Rico Elec Pwr Auth Rev Ser II 5.25% 7/1/2031 A- 3,625 3,719,250 Puerto Rico Elec Pwr Auth Rev Ser X 5.50% 7/1/2025 A- 2,915 2,965,604 ------------- TOTAL 18,949,754 ------------- PRE-REFUNDED 27.89% Albany NY Muni Wtr Fin Auth Wtr & Swr Sys Rev Ser A(10) 6.375% 12/1/2017 AAA 650 799,383 Metropolitan Transn Auth NY Commuter Fac Rev Ser A(10) 6.00% 7/1/2016 AAA 2,000 2,357,340 Metropolitan Transn Auth NY Commuter Fac Rev Ser A(10) 6.00% 7/1/2021 AAA 5,000 5,738,250 Metropolitan Transn Auth NY Commuter Fac Rev Ser A(10) 6.10% 7/1/2026 AAA 2,000 2,300,680 Metropolitan Transn Auth NY Dedicated Tax Fd Ser A(10) 4.75% 4/1/2028 AAA 2,500 2,757,525 Metropolitan Transn Auth NY Dedicated Tax Fd Ser A(11) 5.00% 4/1/2029 AAA 2,000 2,254,300 Metropolitan Transn Auth NY Dedicated Tax Fd Ser A(10) 6.00% 4/1/2030 AAA 3,800 4,529,942 Metropolitan Transn Auth NY Svc Cntrct Trans Fac Ser O ETM 5.75% 7/1/2008 AAA 1,000 1,167,420 Metropolitan Transn Auth NY Tran Fac Rev Svc Cntrct Ser R 5.50% 7/1/2017 AAA 1,000 1,172,230 Municipal Secs Trust Ctfs Ser 7005 Cl B RIBs ETM+ 9.757% 10/1/2040 Aaa 2,000 2,362,560 New York City Muni Wtr Fin Wtr & Sew Sys Rev Ser B 6.00% 6/15/2033 AA 3,360 4,051,858 New York City Transitional Fin Auth Rev Future Tax 2nd Ser A 6.00% 8/15/2029 AA+ 200 241,158 New York City Transitional Fin Auth Rev Future Tax 2nd Ser B 6.00% 11/15/2024 AA+ 950 1,143,515
SEE NOTES TO FINANCIAL STATEMENTS. 62 SCHEDULE OF INVESTMENTS (CONTINUED) NEW YORK TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ New York City Transitional Fin Auth Rev Future Tax 2nd Ser B 6.00% 11/15/2029 AA+ $ 2,000 $ 2,407,400 New York City Transitional Fin Auth Rev Future Tax 5.50% 5/1/2025 AA+ 555 596,936 New York City Transitional Fin Prerefunded Future Tax Secd C 5.50% 5/1/2025 AA+ 445 521,010 New York NY City Muni Wtr Fin Ser A 6.125% 6/15/2020 AAA 1,000 1,096,890 New York St Dorm Auth Lease Rev St Univ Dorm Facs Ser A 5.50% 5/15/2026 AA- 75 84,673 New York St Dorm Auth Rev City Univ 3rd Gen Res Ser 2(15) 6.875% 7/1/2014 AAA 5,650 6,012,052 New York St Dorm Auth Rev City Univ Sys Cons 4th Gen A 5.50% 7/1/2023 AA- 1,215 1,421,635 New York St Dorm Auth Rev Ser B(11) 5.75% 5/15/2017 AAA 395 469,525 New York St Dorm Auth Rev Upstate Cmnty Colleges Ser A 6.20% 7/1/2015 AAA 1,000 1,110,270 New York NY City Transitional Fin Auth Prerefunded-Future Tax 6.25% 11/15/2017 AA+ 2,000 2,437,460 New York St Enviro Fac Poll Ctrl Rev St Wtr Ser E 6.875% 6/15/2014 AAA 2,795 2,952,890 NY St Environmental Facscorp St Clean Wtr & Drinking 6.00% 6/15/2019 AAA 80 95,348 Puerto Rico Comwlth 5.375% 7/1/2025 A- 1,640 1,856,431 Puerto Rico Comwlth Aqueduct & Swr Auth Rev ETM 10.25% 7/1/2009 AAA 715 898,319 Puerto Rico Comwlth Hwy & Prerefunded-Ser B(15) 5.875% 7/1/2035 NR 265 316,047 Puerto Rico Comwlth Hwy Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 A 1,000 1,127,910 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser B 6.50% 7/1/2027 A 2,000 2,468,400 Puerto Rico Comwlth Pub Impt(15) 5.00% 7/1/2024 AAA 1,000 1,142,750 Puerto Rico Comwlth Pub Impt(15) 5.75% 7/1/2026 AAA 3,000 3,550,440 Puerto Rico Comwlth Pub Impt Prerefunded-Pub Impt(15)(14) 5.00% 7/1/2028 AAA 1,130 1,291,307 Puerto Rico Comwlth Pub Impt RIBs 10.54% 7/1/2029 A- 1,000 1,188,440 Puerto Rico Elec Pwr Auth Rev Ser X 6.00% 7/1/2015 Aaa 2,375 2,628,697 Puerto Rico Elec Pwr Auth Ser T RIBs(11) 11.486% 7/1/2018 AAA 3,500 3,913,315 Tompkins Cnty NY Ind Dev Agy Civic Fac Cornell Univ Lake 5.625% 7/1/2020 AA+ 115 136,177
SEE NOTES TO FINANCIAL STATEMENTS. 63 SCHEDULE OF INVESTMENTS (CONTINUED) NEW YORK TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Tompkins Cnty NY Ind Dev Agy Civic Fac Cornell Univ Lake 5.75% 7/1/2030 AA+ $ 1,500 $ 1,787,700 ------------- TOTAL 72,388,183 ------------- RESOURCE RECOVERY 5.91% NY St Enrg Res & Dev Auth Poll Ctrl Rev Niagara Mohawk Ser A(10) 7.20% 7/1/2029 AAA 11,750 12,473,212 NY St Enviro Fac Poll Ctrl Rev St Wtr Revolving Fd Ser A 7.50% 6/15/2012 AAA 780 783,744 NY St Enviro Fac Poll Ctrl Rev St Wtr Ser E 6.875% 6/15/2014 AAA 1,985 2,092,905 ------------- TOTAL 15,349,861 ------------- SPECIAL TAX 0.74% New York NY City Transitional Fin Unrefunded-Future Tax Secd-C 5.00% 5/1/2029 AA+ 1,905 1,920,469 ------------- TRANSPORTATION 17.44% Metropolitan Trans Auth NY Rev Ref-Transn-Ser E 5.25% 11/15/2031 A 2,730 2,797,404 Metropolitan Transn Auth NY Ser B 5.25% 1/1/2031 AA- 1,700 1,740,562 New York NY City Transn Auth RIBs(2) 10.43% 1/1/2030 Aaa 5,000 6,069,400 Niagara NY Frontier Auth Arpt Buffalo Niagara Int Arpt Ser B(15) 5.50% 4/1/2019 AAA 690 754,004 Port Auth NY & NJ Cons 106th Ser AMT 6.00% 7/1/2015 AA- 350 382,225 Port Auth NY & NJ Cons 127th Ser AMT(2) 5.125% 6/15/2037 AAA 1,280 1,288,819 Port Auth NY & NJ Cons 132nd Ser 5.00% 9/1/2029 AA- 4,310 4,359,996 Port Auth NY & NJ Cons 93rd Ser 6.125% 6/1/2094 AA- 7,500 8,695,500 Port Auth NY & NJ Sp Oblig Rev 5th Instllmnt Spl Pj Ser 4 AMT 6.75% 10/1/2019 NR 2,970 3,075,227 Puerto Rico Comwlth Hwy & Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 6,000 6,352,920 Puerto Rico Comwlth Hwy & Transn Auth Rev Rites RIBs 9.853% 1/1/2010 NR 2,000 2,321,840 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser D 5.75% 7/1/2041 A 2,000 2,160,920 Puerto Rico Comwlth Hwy & Transn Auth Sub P R St Infras 5.00% 7/1/2028 A- 1,000 1,006,180 Puerto Rico Comwlth Hwy & Unrefunded Balance-Ser B(15) 5.875% 7/1/2035 NR 485 546,260
SEE NOTES TO FINANCIAL STATEMENTS. 64 SCHEDULE OF INVESTMENTS (CONTINUED) NEW YORK TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Puerto Rico Comwlth Hwy Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A $ 3,500 $ 3,707,270 ------------- TOTAL 45,258,527 ------------- WATER/SEWER 2.40% Buffalo NY Muni Wtr Fin Auth Wtr Sys Rev(10) 5.75% 7/1/2021 AAA 500 547,665 Buffalo NY Muni Wtr Fin Auth Wtr Sys Rev(11) 6.00% 7/1/2029 AAA 500 569,445 New York NY City Muni Wtr Fin Ser E 5.00% 6/15/2034 AA 1,000 1,007,570 New York NY City Muni Wtr Fin Unrefunded Balance Ser B 6.00% 6/15/2033 AA 1,470 1,718,548 NY St Environmental Facscorp St Clean Wtr & Drinking 6.00% 6/15/2019 AAA 1,420 1,652,908 Upper Mohawk NY Regl Wtr Fin Auth NY Wtr Sys Rev(2) 5.75% 4/1/2020 Aaa 650 733,434 ------------- TOTAL 6,229,570 ------------- TOTAL MUNICIPAL BONDS (Cost $239,634,808) 257,307,153 ============= SHARES (000) ------------ SHORT-TERM INVESTMENT 0.17% MONEY MARKET MUTUAL FUND 0.17% Dreyfus New York Muni Cash Management (Cost $431,392) 431 431,392 ------------- TOTAL INVESTMENTS 99.31% (Cost $240,066,200) $ 257,738,545 ------------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS TEXAS TAX-FREE FUND SEPTEMBER 30, 2003
PRINCIPAL AMOUNT (000) ------------ MUNICIPAL BONDS 98.70% EDUCATION 12.61% Houston TX Higher Ed Fin Corp Rice Univ 5.375% 11/15/2029 AAA $ 1,000 1,035,480 Rockwall TX Indpt Sch Dist Sch Bldg PSF 5.25% 2/15/2029 AAA 3,000 3,112,170
SEE NOTES TO FINANCIAL STATEMENTS. 65 SCHEDULE OF INVESTMENTS (CONTINUED) TEXAS TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Southwest Higher Ed Auth Inc Southern Methodist Univ(2) 5.125% 10/1/2032 AAA $ 750 $ 755,783 University TX Univ Rev Fin Sys Ser A 5.375% 8/15/2017 AAA 3,030 3,325,455 University TX Univ Rev Fin Sys Ser B 5.00% 8/15/2033 AAA 1,750 1,759,380 ------------- TOTAL 9,988,268 ------------- GENERAL OBLIGATION 31.64% Azle TX Indpt Sch Dist Ser A PSF 6.00% 2/15/2022 Aaa 250 250,572 Blanco TX Ctfs Oblig(18) 5.50% 8/15/2027 AAA 665 701,695 Dallas Cnty TX Ref & Impt Ser A 5.00% 8/15/2020 AAA 450 468,680 Dallas TX Indpt Sch Dist Ref PSF 5.00% 2/15/2021 AAA 300 312,471 Gregory Portland TX Indpt Sch Dist PSF 5.50% 8/15/2020 AAA 1,075 1,180,404 Harris Cnty TX Ctfs Oblig 5.00% 8/15/2019 AA+ 100 104,557 Katy TX Indpt Sch Dist Ltd Tax PSF 6.125% 2/15/2032 AAA 1,000 1,126,330 Laredo TX Indpt Sch Dist PSF 5.25% 8/1/2024 AAA 1,000 1,033,860 Mansfield TX Indpt Sch Dist PSF 5.25% 2/15/2023 AAA 1,000 1,043,340 Pearland TX Indpt Sch Dist Bd Ser A PSF 5.875% 2/15/2019 AAA 1,000 1,134,940 Pearland TX Indpt Sch Dist PSF 5.125% 2/15/2022 AAA 1,500 1,550,670 Pflugerville TX Indpt Sch Dist PSF 5.00% 8/15/2026 AAA 1,000 1,014,880 Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 A- 1,000 1,013,640 San Antonio TX Indpt Sch Dist PSF 5.50% 8/15/2024 AAA 1,000 1,071,220 Socorro TX Indpt Sch Dist Ref PSF 6.00% 2/15/2015 AAA 920 1,031,228 Texas St Ser B RIBs 10.95% 9/30/2011 Aa1 5,500 7,647,750 Texas St Wtr Dev Brd 7.15% 8/1/2035 Aa1 1,600 1,671,600 United Indpt Sch Dist TX PSF 5.125% 8/15/2026 AAA 1,000 1,029,010 Webster TX Ctfs Oblig Ser A(11) 6.00% 3/1/2017 AAA 1,440 1,663,862 ------------- TOTAL 25,050,709 ------------- HEALTHCARE 4.92% Harris Cnty TX Hlth Fac Dev St. Lukes Episcopal Hosp Ser A 5.375% 2/15/2026 AA- 1,000 1,018,870 Harris Cnty TX Hlth Fac Mem Hermann Hlthcare Ser A 6.375% 6/1/2029 A 1,750 1,874,145 Puerto Rico Ind Tourist Ed Med Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2025 AA 910 1,001,692 ------------- TOTAL 3,894,707 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 66 SCHEDULE OF INVESTMENTS (CONTINUED) TEXAS TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ INDUSTRIAL 13.78% Cass Cnty TX Ind Dev Corp Envr Impt Rev Ser A AMT 6.00% 9/1/2025 BBB $ 1,000 $ 1,024,180 Orange Cnty TX Nav & Port Dist Ind Dev Rev North Star Steel 6.375% 2/1/2017 A+ 2,400 2,619,192 Texas City TX Ind Dev Corp Marine Term Rev Arco Pipe Line 7.375% 10/1/2020 AA+ 5,500 7,270,560 ------------- TOTAL 10,913,932 ------------- LEASE 1.34% Harris Cnty Houston TX Sports Auth Rev Sr Lien Ser G(15) 5.25% 11/15/2021 AAA 1,000 1,061,650 POWER 4.38% Fort Bend Cnty TX Muni Util Dist #25(15) 6.00% 10/1/2028 AAA 2,170 2,454,378 Puerto Rico Elec Pwr Auth Pwr Rev Ser NN 5.125% 7/1/2029 A- 1,000 1,017,190 ------------- TOTAL 3,471,568 ------------- PRE-REFUNDED 9.73% Austin TX Indpt Sch Dist Prerefunded PSF 5.75% 8/1/2015 AAA 500 561,865 Burleson Tex Indpt Sch Dist Prerefunded PSF 6.75% 8/1/2024 AAA 2,000 2,302,820 Municipal Secs Trust Ctfs Ser 7005 Cl B RIBs ETM+ 9.757% 10/1/2040 Aaa 500 590,640 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser B 6.00% 7/1/2031 A 1,980 2,383,266 Puerto Rico Comwlth Pub Impt RIBs(15) 10.18% 7/1/2026 Aaa 500 683,480 San Antonio TX Indpt Sch Dist PSF 5.75% 8/15/2015 AAA 1,000 1,180,470 ------------- TOTAL 7,702,541 ------------- RESOURCE RECOVERY 4.79% Gulf Coast Waste Disp Auth TX Sew & Solid Waste Disp Rev AMT 5.90% 4/1/2036 A+ 1,500 1,581,885 Harris Cnty TX Ind Dev Corp Marine Term & Wtr Poll Ctrl 6.625% 2/1/2024 BBB+ 1,100 1,146,244 Red River Auth TX Pollutn Ctl AMT 6.70% 11/1/2030 BBB 1,000 1,065,370 ------------- TOTAL 3,793,499 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 67 SCHEDULE OF INVESTMENTS (CONTINUED) TEXAS TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION 7.55% Austin TX Arpt Sys Rev Prior Lien Ser A AMT(15) 6.125% 11/15/2025 AAA $ 2,500 $ 2,726,525 Houston TX Arpt Sys Rev Sub Lien Ser B(11) 5.50% 7/1/2030 AAA 1,000 1,037,510 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser C 6.00% 7/1/2029A 1,000 1,096,810 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser PMD RIBs(11)(6) 10.68% 7/1/2026 Aaa 950 1,120,335 ------------- TOTAL 5,981,180 ------------- WATER/SEWER 7.96% Dallas TX Wtr Wks & Swr Sys Rev Ref 5.00% 10/1/2012 AA+ 750 824,393 El Paso TX Wtr & Swr Rev Ref & Impt Ser A(11) 5.25% 3/1/2027 AAA 1,000 1,034,290 San Antonio TX Wtr Rev Ref Sys(11) 5.00% 5/15/2028 AAA 1,000 1,008,310 Upper Trinity Regl Wtr Dist TX Wtr Rev Sys Ser 4(10) 6.00% 8/1/2026 AAA 3,025 3,433,405 ------------- TOTAL 6,300,398 ------------- TOTAL MUNICIPAL BONDS (Cost $70,295,761) 78,158,452 ============= SHARES (000) ------------ SHORT-TERM INVESTMENT 0.11% MONEY MARKET MUTUAL FUND 0.11% Dreyfus Municipal Cash Management Plus (Cost $82,570) 83 82,570 ------------- TOTAL INVESTMENTS 98.81% (Cost $70,378,331) $ 78,241,022 ------------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS WASHINGTON TAX-FREE FUND SEPTEMBER 30, 2003
PRINCIPAL AMOUNT (000) ------------ MUNICIPAL BONDS 95.30% EDUCATION 7.81% Univ WA Ed Resh Rev Roosevelt Pj(15)(14) 5.375% 6/1/2029 AAA $ 1,100 1,139,776 Univ WA Rev Student Fac Fee(11) 5.50% 6/1/2019 AAA 810 890,101
SEE NOTES TO FINANCIAL STATEMENTS. 68 SCHEDULE OF INVESTMENTS (CONTINUED) WASHINGTON TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Washington St Higher Ed Fac Auth Rev Gonzaga Univ Pj(15) 4.75% 4/1/2022 AAA $ 1,000 $ 1,007,240 Western WA Univ Rev Student Rec Fee(15) 5.00% 5/1/2033 AAA 900 905,580 ------------- TOTAL 3,942,697 ------------- GENERAL OBLIGATION 20.13% Bremerton WA(2) 5.25% 12/1/2027 Aaa 1,440 1,487,477 King Cnty WA Sch Dist #405 Bellevue(10) 5.00% 12/1/2020 AAA 2,000 2,100,340 King Cnty WA Sch Dist #414 Lake Washington(11)(6) 5.50% 12/1/2019 AAA 1,000 1,106,970 King Cnty WA Ser B 4.50% 1/1/2024 AA+ 320 314,550 King Cnty WA Ser B(15) 5.00% 1/1/2030 AAA 1,000 1,005,780 Port Seattle WA Ser B AMT 5.75% 12/1/2025 AA+ 750 807,277 Port Tacoma WA(2) 5.00% 12/1/2033 AAA 400 402,828 Puerto Rico Comwlth Pub Impt Ref Pub Impt(11) 5.00% 7/1/2024 AAA 1,000 1,029,030 Puerto Rico Pub Fin Corp Comwlth App Ser A(2) 5.125% 6/1/2024 AAA 750 813,645 Thurston & Pierce Cntys WA Cmnty Schs Yelm(11) 5.25% 12/1/2017 Aaa 1,000 1,097,620 ------------- TOTAL 10,165,517 ------------- HEALTHCARE 2.17% Puerto Rico Ind Tourist Ed Med & Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2030 AA 1,000 1,097,560 ------------- HOUSING 2.35% Skagit Cnty WA Hsg Auth Low Income Hsg Assist Rev Mtg Ln(12) 7.00% 6/20/2035 AAA 750 792,232 WA St Hsg Fin Cmnty Sing Fam Mtg Rev Mtg Ser A AMT(13) 7.05% 7/1/2022 AAA 385 394,198 ------------- TOTAL 1,186,430 ------------- MISCELLANEOUS 3.10% Bellevue WA Convention Ctr Auth Sp Oblig Rev(15) Zero Coupon 2/1/2024 AAA 1,400 470,204 Spokane WA Pub Fac Dist Hotel Motel & Sales Use Tax(15) 5.75% 12/1/2028 AAA 1,000 1,094,990 ------------- TOTAL 1,565,194 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 69 SCHEDULE OF INVESTMENTS (CONTINUED) WASHINGTON TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ POWER 17.20% Chelan Cnty WA Pub Util Dist #1 Cons Rev Ser A AMT(15) 6.40% 7/1/2017 AAA $ 1,000 $ 1,135,490 Clark Cnty WA Pub Util Dist #1 Rev(11) 5.125% 1/1/2020 AAA 400 419,568 Douglas Cnty WA Pub Util Dist #1 Wells Hydro 8.75% 9/1/2018 AA 350 432,394 Douglas Cnty WA Pub Util Dist #1 Wells Hydro 2 Tier Ser B(2) 8.75% 9/1/2006 AAA 2,085 2,338,890 Energy Northwest WA Wind Proj Rev(2) 5.00% 7/1/2023 AAA 1,000 1,022,680 Grant Cnty WA Pub Util Dist #002 Elec Rev Ser H(11) 5.00% 1/1/2022 AAA 1,000 1,020,310 Puerto Rico Elec Pwr Auth Pwr Rev Ser NN 5.125% 7/1/2029 A- 1,500 1,525,785 Seattle WA Mun Lt & Pwr Rev Ser A(15) 5.625% 9/1/2015 AAA 720 789,732 ------------- TOTAL 8,684,849 ------------- PRE-REFUNDED 25.13% Douglas Cnty WA Pub Util Dist #1 Wells Hydro 8.75% 9/1/2018 Aaa 150 189,729 Mount Vernon WA(2) 6.85% 12/1/2014 AAA 1,285 1,372,316 Municipal Secs Trust Ctfs Ser 7005 Cl B RIBs ETM+ 9.757% 10/1/2040 Aaa 1,000 1,181,280 Ocean Shores WA Wtr & Swr(11) 5.50% 12/1/2021 Aaa 1,000 1,164,730 Port Seattle WA Spl Fac Rev Prerefunded AMT Ser C(15) 6.00% 9/1/2029 AAA 915 1,084,485 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser B 6.00% 7/1/2031 A 1,000 1,203,670 Puerto Rico Comwlth Pub Impt RIBs 10.54% 7/1/2029 A- 1,000 1,188,440 Renton WA Wtr & Swr Rev 6.55% 11/1/2013 A1 1,000 1,059,900 Tacoma WA Sewer Rev Ser B(10) 6.375% 12/1/2015 AAA 1,000 1,112,330 Vancouver WA Ltd Tax(2) 5.50% 12/1/2025 AAA 1,255 1,464,585 Washington St Higher Ed Fac Auth Rev Whitworth College(5) 7.00% 10/1/2015 AAA 250 265,063 Washington St Ser A 5.75% 9/1/2019 AA+ 250 260,975 Washington St Ser B 5.75% 5/1/2016 AA+ 15 15,418 Washington St Ser B 5.75% 5/1/2016 AA+ 985 1,012,462 Whatcom Cnty WA 5.75% 12/1/2012 A1 115 115,884 ------------- TOTAL 12,691,267 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 70 SCHEDULE OF INVESTMENTS (CONTINUED) WASHINGTON TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION 11.99% Central Puget Sound WA Regl Transit Auth Sales Tax & Motor(10) 5.25% 2/1/2021 AAA $ 1,750 $ 1,926,680 Port Kalama WA Rev Ser B AMT 5.625% 12/1/2015 A3 400 418,736 Port Seattle WA Spl Fac Rev Unrefunded Balance AMT Ser C(15) 6.00% 9/1/2029 AAA 1,085 1,191,135 Puerto Rico Comwlth Hwy & Transn Auth Rev PMD Ser B 6.00% 7/1/2026A 1,000 1,058,820 Puerto Rico Comwlth Hwy & Transn Auth Rev Rites RIBs 9.853% 1/1/2010 NR 750 870,690 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser PMD RIBs(11)(6) 10.68% 7/1/2026 Aaa 500 589,650 ------------- TOTAL 6,055,711 ------------- WATER/SEWER 5.42% King Cnty WA Swr Rev Ref-Ser A(10) 5.00% 1/1/2027 AAA 150 151,719 Pierce Cnty WA Swr Rev(2) 5.00% 8/1/2021 AAA 1,100 1,140,293 Seattle WA Wtr Sys Rev(10) 5.00% 11/1/2026 AAA 300 303,165 Vancouver WA Wtr & Swr Rev(10) 6.00% 6/1/2020 AAA 1,000 1,139,990 ------------- TOTAL 2,735,167 ------------- TOTAL MUNICIPAL BONDS (Cost $44,659,720) 48,124,392 ============= SHARES (000) ---------- SHORT-TERM INVESTMENT 1.97% MONEY MARKET MUTUAL FUND 1.97% Dreyfus Municipal Cash Management Plus (Cost $993,118) 993 993,118 ------------- TOTAL INVESTMENTS 97.27% (Cost $45,652,838) $ 49,117,510 ------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 71 SCHEDULE OF INVESTMENTS INSURED INTERMEDIATE TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS 88.60% EDUCATION 12.78% Appalachian St Univ NC Rev Ref-Util Sys(15) 5.00% 5/15/2010 AAA $ 100 $ 113,007 Maricopa Cnty AZ Sch Dist #69 Paradise VY Ref-Second Ser(10) 5.00% 7/1/2013 AAA 100 111,851 New York St Dorm Auth Rev Insured-Fordham Univ(10) 5.00% 7/1/2011 AAA 100 112,037 Pickens Cnty SC Sch Dist Ref Ser B(10) 2.25% 3/1/2005 AAA 100 101,563 University CO Univ Revs Enterprise Sys-Ser A(15) 5.00% 6/1/2011 AAA 100 111,924 ------------- TOTAL 550,382 ------------- GENERAL OBLIGATION 23.42% Dayton OH City Sch Dist Sch Facs Constr & Impt-Ser D(10) 5.00% 12/1/2010 AAA 100 113,211 Harnett Cnty NC Ctfs Partn Ref-Harnett Cnty Projs(11) 5.00% 10/1/2008 AAA 100 113,580 Hawaii St Ref Ser DB(15) 5.25% 9/1/2013 AAA 100 113,827 Marlboro TWP NJ Brd Ed(11) 5.00% 7/15/2009 AAA 100 113,208 New Jersey St Var Purp Ref-Ser J(15)(14) 5.00% 7/15/2009 AAA 100 113,093 Oseola WI Corp Purp(15) 3.45% 12/1/2007 AAA 100 106,213 Tennessee St Ser A(11) 5.00% 8/1/2009 AAA 100 113,169 Wayne Cnty MI Cmnty College Cmnty College Impt(10) 5.25% 7/1/2010 Aaa 100 114,034 West Windsor Plainsboro NJ Regl Sch Dist Ref(11) 4.00% 12/1/2007 AAA 100 108,571 ------------- TOTAL 1,008,906 ------------- HEALTHCARE 2.35% Wayne Cnty PA Hosp & Hlth Facs Wayne Mem Hosp Proj(15) 2.00% 7/1/2005 AAA 100 101,307 ------------- LEASE 2.68% OH St Bldg Auth Ref-St Facs-Adult Correction-A(11) 5.50% 10/1/2008 AAA 100 115,579 ------------- MISCELLANEOUS 21.04% CT St Spl Tax Oblig Rev Ref-Transn Infrastructure-B(11) 5.00% 10/1/2006 AAA 100 110,552 FL St Dept Environmental Protn Preservation Rev FL Forever(15) 5.00% 7/1/2012 AAA 100 111,530 Lee Cnty FL Ref-Ser A(15) 5.75% 10/1/2011 AAA 100 117,707 Michigan St Environmental Ref(15)(14) 5.50% 12/1/2013 AAA 100 116,229
SEE NOTES TO FINANCIAL STATEMENTS. 72 SCHEDULE OF INVESTMENTS (CONTINUED) INSURED INTERMEDIATE TAX-FREE FUND SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ MO Dev Fin Brd Cultural Facs Nelson Gallery(15) 5.25% 12/1/2013 AAA $ 100 $ 112,099 OR St Dept Administrative Svcs(11) 5.00% 9/1/2012 AAA 100 112,127 Phoenix AZ Str & Hwy User Rev Ref-Jr Lien(10) 5.00% 7/1/2008 AAA 100 112,498 Regional Transn Dist CO Sales(11) 5.00% 11/1/2009 AAA 100 113,410 ------------- TOTAL 906,152 ------------- POWER 2.66% Puerto Rico Elec Pwr Auth Ref Ser JJ(15) 5.25% 7/1/2013 AAA 100 114,605 ------------- PRE-REFUNDED 8.06% Chicago IL Met Wtr Reclamation Dist Gtr Chicago Cap Impt ETM 5.50% 12/1/2010 Aaa 100 116,700 Detroit MI Wtr Supply Sys Prerefunded Sr Lien Ser A(10) 5.25% 7/1/2033 AAA 100 114,920 Muhlenberg PA Sch Dist(10) 5.40% 9/1/2012 AAA 100 115,552 ------------- TOTAL 347,172 ------------- SPECIAL TAX 2.61% Ernest N Morial New Orleans LA Exhibit Hall Auth Spl Tax(2) 5.00% 7/15/2010 AAA 100 112,188 ------------- TRANSPORTATION 7.77% New Haven CT Air Rights Pkg Ref(2) 5.375% 12/1/2012 AAA 100 115,260 North TX Thruway Auth Dallas North Twy Sys Rev Ref Ser C(11) 3.00% 1/1/2006 AAA 100 103,702 Puerto Rico Comwlth Hwy & Ser E(11) 5.50% 7/1/2013 AAA 100 115,849 ------------- TOTAL 334,811 ------------- WATER/SEWER 5.23% Columbus GA Wtr & Sew Rev Ref(11) 5.25% 5/1/2013 AAA 100 113,611 Shreveport La Wtr & Swr Rev Ref-Ser A(10) 5.00% 12/1/2012 AAA 100 111,832 ------------- TOTAL 225,443 ------------- TOTAL MUNICIPAL BONDS (Cost $3,730,586) 3,816,545 ============= SHARES (000) ---------- SHORT-TERM INVESTMENT 4.42% MONEY MARKET MUTUAL FUND 4.42% Dreyfus Municipal Cash Management Plus (Cost $190,383) 190 190,383 ------------- TOTAL INVESTMENTS 93.02% (Cost $3,920,969) $ 4,006,928 ==============================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 73 SCHEDULE OF INVESTMENTS FLORIDA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS 102.23% EDUCATION 2.70% Miami-Dade Cnty FL Ed Fac Auth Rev Ser A(2) 6.00% 4/1/2023 AAA $ 2,000 $ 2,287,880 ------------- GENERAL OBLIGATION 13.49% Boca Raton FL 5.25% 7/1/2016 AAA 1,615 1,769,636 Boca Raton FL 5.25% 7/1/2017 AAA 1,000 1,089,220 Florida St Brd Ed Cap Outlay Pub Ed Ser E 5.625% 6/1/2025 AA+ 1,000 1,075,080 Florida St Brd Ed Cap Outlay Ser A 5.25% 6/1/2024 AA+ 2,000 2,079,080 Florida St Brd Ed Ref Cap Outlay Ser A(15) 5.00% 6/1/2013 AAA 2,500 2,789,825 Hillsborough Cnty FL Sch Brd Ctfs Partn(15) 5.00% 7/1/2029 AAA 1,000 1,014,570 Puerto Rico Comwlth Pub Impt 5.25% 7/1/2017 A- 1,475 1,624,019 ------------ TOTAL 11,441,430 ------------ HEALTHCARE 10.45% Highlands Cnty FL Fac Auth Rev Hosp Adventist Health Sys D(d) 5.875% 11/15/2029 A 2,000 2,095,420 Highlands Cnty FL Fac Auth Rev Hosp Adventist/Sunbelt Ser A 6.00% 11/15/2031 A 2,000 2,113,820 Orange Cnty FL Hlth Fac Auth Rev Hosp Orlando Regl 5.75% 12/1/2032 A2 1,000 1,027,130 Puerto Rico Ind Tourist Ed Med Envr Ctrl Fac Hosp 6.50% 11/15/2020 AA 410 462,156 Sarasota Cnty FL Pub Hosp Brd Rev Sarasota Mem Hosp Ser B(15) 5.50% 7/1/2028 AAA 2,875 3,164,398 ------------- TOTAL 8,862,924 ------------- HOUSING 1.87% Lee Cnty FL Hsg Fin Auth Sing Fam Mtg Rev AMT(13)(7) 6.40% 3/1/2029 Aaa 1,290 1,379,255 Orange Cnty FL Hsg Fin Auth Ser A-1 AMT(13) Zero Coupon 3/1/2028 Aaa 785 208,268 ------------- TOTAL 1,587,523 ------------- INDUSTRIAL 1.56% Lee Cnty FL Ind Dev Auth Ref Bonita Springs Util Pj AMT(2) 5.125% 11/1/2019 AAA 1,250 1,321,450 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 74 SCHEDULE OF INVESTMENTS (CONTINUED) FLORIDA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ LEASE 1.27% Collier Cnty Fla Sch Brd(11) 5.375% 2/15/2021 Aaa $ 1,000 $ 1,076,270 ------------- MISCELLANEOUS 14.20% Florida St Dept Environmental Protn Preservation Rev FL Forever(15) 5.00% 7/1/2012 AAA 2,400 2,676,720 Florida Muni Ln Council Rev(15) Zero Coupon 4/1/2020 AAA 4,000 1,808,760 Jacksonville FL Excise Taxes Ref Ser C AMT(15) 5.25% 10/1/2020 AAA 1,000 1,051,610 Jacksonville FL Sales Tax Rev Ref & Impt Loc Govt(10) 5.375% 10/1/2018 AAA 1,000 1,102,220 Miami-Dade Cnty FL Spl Oblig Sub Ser A(15) Zero Coupon 10/1/2024 AAA 3,000 948,930 Miami-Dade Cnty FL Spl Oblig Sub Ser B(15) 5.00% 10/1/2037 AAA 1,000 1,007,710 Orange Cnty FL Tourist Dev Sub(2) 5.125% 10/1/2025 AAA 1,445 1,480,475 Osceola Cnty Tourist Dev Tax Rev Ser A(10) 5.00% 10/1/2032 AAA 1,400 1,419,236 Tampa FL Sports Auth Rev Tampa Bay Arena Pj(15) 6.00% 10/1/2015 AAA 450 545,625 ------------- TOTAL 12,041,286 ------------- POWER 1.21% Puerto Rico Elec Pwr Auth Pwr Rev Ser NN(15) 5.00% 7/1/2032 AAA 1,000 1,025,530 ------------- PRE-REFUNDED 31.44% Miami-Dade Cnty FL Expwy Auth Toll Sys Rev(10) 6.375% 7/1/2029 AAA 2,250 2,759,760 Municipal Secs Trust Ctfs Ser 7005 Cl B RIBs ETM+ 9.757% 10/1/2040 Aaa 1,250 1,476,600 Orange Cnty FL Tourist Dev Tax Rev ETM(2) 6.00% 10/1/2016 AAA 710 723,582 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser B 6.00% 7/1/2031 A 1,000 1,203,670 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser B 6.50% 7/1/2027 A 1,000 1,234,200 Puerto Rico Comwlth Pub Impt RIBs(15) 10.18% 7/1/2026 Aaa 3,500 4,784,360 Puerto Rico Comwlth Pub Impt RIBs 10.54% 7/1/2029 A- 2,000 2,376,880 Puerto Rico Muni Fin Agy Ser A 6.50% 7/1/2019 AAA 2,915 3,076,958 Tampa Bay Wtr FL Util Sys Rev(10) 6.00% 10/1/2024 AAA 3,000 3,595,410
SEE NOTES TO FINANCIAL STATEMENTS. 75 SCHEDULE OF INVESTMENTS (CONTINUED) FLORIDA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Tampa FL Rev Allegany Hlth Sys St. Joseph(15) 6.70% 12/1/2018 AAA $ 5,000 $ 5,430,000 ------------- TOTAL 26,661,420 ------------- RESOURCE RECOVERY 0.91% Jacksonville FL Pollution Rev Anheuser-Busch Pj 5.70% 8/1/2031 A+ 750 770,145 ------------- SPECIAL TAX 1.93% Tampa FL Util Tax & Spl Rev Ref-Ser A(2) 5.25% 10/1/2020 AAA 1,505 1,637,440 ------------- TRANSPORTATION 10.47% Florida Ports Fin Commn Rev St Transn TR FD Intermodal Pg AMT(10) 5.50% 10/1/2029 AAA 1,295 1,375,096 Jacksonville FL Port Auth Arpt Rev Ser A AMT(10) 6.25% 10/1/2024 AAA 1,000 1,096,510 Miami-Dade Cnty FL Aviation Ser A AMT(11) 5.125% 10/1/2035 AAA 1,900 1,914,288 Miami-Dade Cnty FL Expwy Auth Toll Sys Rev Ref(10) 5.125% 7/1/2025 Aaa 750 771,502 Pensacola FL Arpt Rev Ser A AMT(15) 6.125% 10/1/2018 AAA 1,250 1,409,725 Puerto Rico Comwlth Hwy & Ser E(11) 5.50% 7/1/2013 AAA 650 758,271 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser C 6.00% 7/1/2029 A 880 965,193 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser PMD RIBs(11)(6) 10.68% 7/1/2026 Aaa 500 589,650 ------------- TOTAL 8,880,235 ------------- WATER/SEWER 10.73% Jea FL Wtr & Swr Sys Rev Ser A(15) 5.375% 10/1/2030 AAA 1,000 1,031,590 Lee Cnty FL Wtr & Swr Rev Ref-Ser A(15) 5.00% 10/1/2019 Aaa 1,525 1,623,744 Melbourne FL Wtr & Swr Rev Ref & Impt Ser A(10) 5.00% 10/1/2032 AAA 1,810 1,834,869 Miami Beach FL Stormwater Rev(10) 5.25% 9/1/2020 AAA 1,000 1,073,000 Miami Beach FL Wtr & Swr Rev(2) 5.25% 9/1/2020 AAA 1,000 1,074,240 Miami Beach FL Wtr & Swr Rev(2) 5.50% 9/1/2027 AAA 1,000 1,085,370 Ocala FL Wtr & Swr Rev(10) 5.25% 10/1/2027 Aaa 800 831,376 Sebring FL Wtr & Wastewtr Rev Ref(10) 5.25% 1/1/2020 AAA 500 539,845 ------------- TOTAL 9,094,034 ------------- TOTAL MUNICIPAL BONDS (Cost $79,256,910) $ 86,687,567 =============
SEE NOTES TO FINANCIAL STATEMENTS. 76 SCHEDULE OF INVESTMENTS (CONTINUED) FLORIDA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: INTEREST MATURITY S&P OR SHARES INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENT 2.83% MONEY MARKET MUTUAL FUND 2.83% Dreyfus FL Muni Cash Management (Cost $2,395,643) 2,396 $ 2,395,643 ------------- TOTAL INVESTMENTS 105.06% (Cost $81,652,553) $ 89,083,210 ==============================================================================================================================
SCHEDULE OF INVESTMENTS GEORGIA TAX-FREE TRUST SEPTEMBER 30, 2003
PRINCIPAL AMOUNT (000) ------------ MUNICIPAL BONDS 97.82% EDUCATION 19.50% Athens - Clarke Cnty GA Uni Govt UGA ref Ccrc Bldg LLC Pj(2) 5.00% 12/15/2032 AAA $ 1,800 1,838,484 Athens GA Hsg Auth Student Hsg Univ of Georgia East Campus(2) 5.00% 12/1/2027 Aaa 3,000 3,075,180 Bulloch Cnty GA Dev Auth GA So Univ Pj(2) 5.00% 8/1/2021 Aaa 500 523,210 Fulton Cnty GA Dev Auth Rev GA Tech Athletic Assn(2) 5.50% 10/1/2017 AAA 1,000 1,130,180 Fulton Cnty GA Dev Auth Rev GA Tech Fndtn Fdg Ser A 5.00% 11/1/2031 AA+ 1,400 1,419,446 Fulton Cnty GA Dev Auth Rev GA Tech Fndtn Sac II Pj Ser A 5.125% 11/1/2021 AA+ 750 788,685 Fulton Cnty GA Dev Auth Rev Morehouse College Pj(2) 5.875% 12/1/2030 AAA 1,850 2,076,736 Fulton Cnty GA Dev Auth Rev Tuff Morehouse Pj Ser A(2) 5.50% 2/1/2022 AAA 1,000 1,090,500 Private Colleges & Univ Auth GA Emory Univ Pj Ser A 5.50% 11/1/2020 AA 1,000 1,108,320 Private Colleges & Univ Auth GA Emory Univ Pj Ser A 5.50% 11/1/2025 AA 1,000 1,089,740 Private Colleges & Univ Auth Ga Rev Emory Univ PJ-Ser A 5.75% 11/1/2018 AA 500 573,545 Private Colleges & Univ Auth GA Rev Mercer Univ Pj 5.75% 10/1/2031 Baa1 500 515,325 Private Colleges & Univ Auth Spelman College 5.25% 6/1/2021 Aa3 1,340 1,433,130 ------------- TOTAL 16,662,481 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 77 SCHEDULE OF INVESTMENTS (CONTINUED) GEORGIA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ GENERAL OBLIGATION 9.80% Forsyth Cnty GA Sch Dist 6.00% 2/1/2016 Aa2 $ 2,000 $ 2,346,060 Georgia St Ser C 7.25% 7/1/2005 AAA 1,500 1,656,705 Georgia St Ser C 7.25% 7/1/2006 AAA 1,000 1,155,760 Georgia ST Ser F 5.00% 11/1/2018 AAA 1,000 1,079,420 Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- 330 332,765 Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 1,735 1,799,889 ------------- TOTAL 8,370,599 ------------- HEALTHCARE 5.44% Athens - Clarke Cnty GA Uni Govt Catholic Health East Issue 5.50% 11/15/2032 A 1,000 1,015,690 Clarke Cnty GA Hosp Auth Rev Ctfs Athens Regl Med Ctr Pj(15) 5.125% 1/1/2032 AAA 500 511,605 Cobb Cnty GA Hosp Auth Rev Ref & Impt-Rev Antic(2) 5.25% 4/1/2024 AAA 1,000 1,053,030 Glynn Brunswick GA Mem Hosp Auth Rev Southeast GA Hlth(15) 6.00% 8/1/2016 AAA 400 447,896 Puerto Rico Ind Tourist Ed Med Envr Ctrl Fac Hosp 6.50% 11/15/2020 AA 410 462,156 Tift Cnty GA Dev Auth Rev First Abac LLC Proj-Ser A(2) 5.00% 9/1/2026 Aaa 595 610,887 Ware Cnty GA Hosp Auth Rev Antic Ctfs(15) 5.50% 3/1/2021 Aaa 500 544,010 ------------- TOTAL 4,645,274 ------------- HOUSING 4.49% Clayton Cnty GA Hsg Auth Multi Fam Hsg Rev(12) 5.60% 12/20/2024 Aaa 500 527,725 DeKalb Cnty GA Hsg Auth Multi Fam Lakes At Indian Creek AMT(11) 7.15% 1/1/2025 AAA 500 523,770 Georgia St Hsg & Fin Auth Rev Sing Fam Mtg Ser A Sub A-2 AMT(8) 6.40% 12/1/2015 AAA 80 80,190 Georgia St Hsg & Fin Auth Rev Sing Fam Sub Ser D-2 AMT 5.75% 12/1/2031 AAA 1,160 1,197,085 Georgia St Hsg & Fin Auth Rev AMT-Subseries A-2 4.875% 12/1/2024 AAA 1,000 1,001,340 Savannah GA Economic Dev Auth Mltfmly Hsg Rev AMT(12) 5.15% 11/20/2022 AAA 500 509,735 ------------- TOTAL 3,839,845 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 78 SCHEDULE OF INVESTMENTS (CONTINUED) GEORGIA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ INDUSTRIAL 0.86% Albany Dougherty GA Payroll Dev Auth Procter & Gamble AMT 5.20% 5/15/2028 AA- $ 500 $ 527,185 Monroe Cnty GA Dev Auth Poll GA Pwr Co Plant(2) 5.25% 7/1/2031 AAA 205 208,385 ------------- TOTAL 735,570 ------------- LEASE 4.12% College Park GA Business Civic Ctr Pj(2) 5.75% 9/1/2026 AAA 450 502,227 Georgia Mun Assn Inc Ctfs City Court Atlanta Pj(2) 5.25% 12/1/2026 AAA 750 787,035 Puerto Rico Pub Fin Corp Comwlth Approp Ser A(15) 5.50% 8/1/2020 AAA 1,500 1,662,615 Richmond Cnty GA Pub Fac Cnty Brd Ed Pj(2) 6.00% 11/1/2024 Aaa 500 567,850 ------------- TOTAL 3,519,727 ------------- MISCELLANEOUS 8.47% Association Cnty GA Leasing Pj Rockdale Cnty GA Pub Purp Pj(2) 5.625% 7/1/2020 AAA 25 27,742 Cobb Marietta GA Coliseum & Exhibit Hall Auth Rev(15) 5.625% 10/1/2026 AAA 1,000 1,133,750 Fayette Cnty GA Pub Fac Auth Rev Criminal Justice Center Pj 5.00% 6/1/2026 AA 750 763,140 George L Smith II GA World Congress Ctr Auth Rev AMT(15) 5.75% 7/1/2015 AAA 500 556,955 Puerto Rico Pub Bldg Auth Rev Gtd Govt Fac Ser D 5.25% 7/1/2036 A- 1,250 1,274,475 Puerto Rico Pub Bldg Auth Rev Gtd Govt Fac Ser D 5.375% 7/1/2033 A- 1,300 1,346,189 Puerto Rico Pub Fin Corp Comwlth Approp Ser E 5.70% 8/1/2025 BBB+ 2,000 2,136,420 ------------- TOTAL 7,238,671 ------------- POWER 4.90% Georgia Muni Elec Auth Pwr R Ser FF(15)(14) 5.00% 1/1/2026 AAA 1,300 1,327,898 Municipal Elec Auth GA Combustion Turbine Pj Ser A(15) 5.25% 11/1/2022 AAA 1,445 1,541,627 Puerto Rico Elec Pwr Auth Ref Ser FF(15) 5.25% 7/1/2005 AAA 250 268,053
SEE NOTES TO FINANCIAL STATEMENTS. 79 SCHEDULE OF INVESTMENTS (CONTINUED) GEORGIA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Puerto Rico Elec Pwr Auth Ser HH(11) 5.25% 7/1/2029 AAA $ 1,000 $ 1,046,520 ------------- TOTAL 4,184,098 ------------- PRE-REFUNDED 20.62% Atlanta GA Arpt Fac Rev Ref-Gen-Ser A(10) 5.50% 1/1/2026 AAA 3,645 4,235,709 Atlanta GA Arpt Fac Rev Ser A(10) 5.60% 1/1/2030 AAA 1,500 1,751,625 Atlanta GA ETM 5.60% 12/1/2015 AA- 95 97,458 Cobb Cnty GA Kennestone Hosp Auth Rev Ctfs Ser 86 A ETM(15) Zero Coupon 8/1/2015 AAA 395 206,142 Fayette Cnty GA Pub Fac Auth Criminal Justice Center Pj 6.00% 6/1/2030 AA 1,000 1,201,490 Forsyth Cnty GA Wtr & Sew Auth Rev 6.25% 4/1/2021 AA 750 908,940 Municipal Secs Trust Ctfs Ser 7005 Cl B RIBs ETM+ 9.757% 10/1/2040 Aaa 1,000 1,181,280 Puerto Rico Comwlth Hwy Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 A 2,000 2,255,820 Puerto Rico Comwlth Pub Impt(11)(6) 5.50% 7/1/2017 AAA 500 564,685 Puerto Rico Comwlth Pub Impt(15) 5.75% 7/1/2026 AAA 1,990 2,355,125 Puerto Rico Comwlth Pub Impt RIBs 10.54% 7/1/2029 A- 1,125 1,336,995 Puerto Rico Elec Pwr Auth Ser T RIBs(11) 11.486% 7/1/2018 AAA 1,000 1,118,090 Savannah GA Econ Dev Auth Rev Sub Ser C ETM Zero Coupon 12/1/2021 Aaa 1,000 408,560 ------------- TOTAL 17,621,919 ------------- RESOURCE RECOVERY 2.62% Atlanta GA Wtr & Waste Wtr Rev Ser A-Unrefunded Balance(10) 5.00% 11/1/2029 AAA 2,090 2,132,176 Cobb Cnty GA Solid Waste Mgmt Auth Rev AMT 6.40% 1/1/2015 AAA 100 105,020 ------------- TOTAL 2,237,196 ------------- TRANSPORTATION 10.96% Atlanta GA Arpt Fac Rev AMT(15) Zero Coupon 1/1/2010 AAA 1,500 1,085,580 Macon Bibb Cnty GA Indl Auth Arpt Impt Rev Ref Atlantic AMT(2) 5.00% 4/1/2018 AAA 500 529,060 Metropolitan Atlanta GA Rapid Ref Second Indenture Ser A(15) 6.25% 7/1/2005 AAA 500 544,635 Puerto Rico Comwlth Hwy & Ser D(11) 5.00% 7/1/2032 AAA 475 486,115 Puerto Rico Comwlth Hwy & Transn Auth Rev Rites RIBs 9.853% 1/1/2010 NR 1,750 2,031,610
SEE NOTES TO FINANCIAL STATEMENTS. 80 SCHEDULE OF INVESTMENTS (CONTINUED) GEORGIA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Puerto Rico Comwlth Hwy & Transn Auth Rev Ser B(15) 5.875% 7/1/2020 AAA $ 1,000 $ 1,148,780 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser C 6.00% 7/1/2029 A 250 274,203 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser D 5.75% 7/1/2041 A 1,985 2,144,713 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser PMD RIBs(11)(6) 10.68% 7/1/2026 Aaa 500 589,650 Puerto Rico Comwlth Hwy & Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A 500 529,610 ------------- TOTAL 9,363,956 ------------- WATER/SEWER 6.04% Augusta GA Wtr & Swr Rev(11) 5.25% 10/1/2022 AAA 500 535,120 Augusta GA Wtr & Swr Rev(11) 5.25% 10/1/2030 AAA 1,110 1,154,788 Carroll Cnty GA Wtr Auth Wtr & Swr Rev(2) 5.25% 7/1/2021 Aaa 500 540,765 Elberton GA Combined Util Sys Rev Ref & Impt(2) 5.50% 1/1/2019 Aaa 550 609,862 Glynn Cnty GA Wtr & Swr Rev Ref & Impt(2) 5.00% 4/1/2023 Aaa 750 778,718 Henry Cnty GA Wtr & Sew Auth Rev(10) 5.625% 2/1/2030 AAA 1,050 1,122,870 Woodstock GA Wtr & Swr Rev Ref & Impt(15) 5.00% 7/1/2022 AAA 400 417,216 ------------- TOTAL 5,159,339 ------------- TOTAL MUNICIPAL BONDS (Cost $79,694,919) $ 83,578,675 ==============================================================================================================================
SCHEDULE OF INVESTMENTS MICHIGAN TAX-FREE TRUST SEPTEMBER 30, 2003 MUNICIPAL BONDS 97.76% EDUCATION 8.65% Eastern MI Univ Rev Gen Ser B(10) 5.60% 6/1/2025 AAA 1,430 1,552,980 Forest Hills MI Pub Schs(10) 5.25% 5/1/2020 Aaa 2,000 2,151,660 Grand Valley MI St Univ Rev(10) 5.50% 2/1/2018 AAA 1,150 1,301,225 University MI Univ Rev Student Fee Ser A 6.00% 4/1/2007 Aaa 250 285,680 Wayne Cnty MI Cmnty College Impt(2) 5.50% 7/1/2019 AAA 565 611,968 ------------- TOTAL 5,903,513 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 81 SCHEDULE OF INVESTMENTS (CONTINUED) MICHIGAN TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ GENERAL OBLIGATION 27.35% Belding MI Area Sch(2) 5.00% 5/1/2026 AAA $ 400 $ 404,220 Bloomingdale MI Pub Sch Dist # 16 5.50% 5/1/2021 AAA 450 491,278 Caledonia MI Cmnty Schs Ref(11)(6) 5.25% 5/1/2022 AAA 1,025 1,090,815 Carman-Ainsworth Cmnty Sch(10) 5.00% 5/1/2027 AAA 1,000 1,013,890 Central Montcalm MI Pub Sch(15) 5.90% 5/1/2019 AAA 1,000 1,127,640 Constantine Mich Pub Schs(11)(6) 5.00% 5/1/2025 AAA 1,000 1,017,490 Crawford Ausable MI Sch Dist Sch Bldg & Site 5.00% 5/1/2021 AAA 350 363,394 Detroit MI City Sch Dist Sch Bldg & Site Impt Ser A(10) 5.25% 5/1/2028 AAA 1,000 1,040,420 Elkton Pigeon Bay Port MI Sch Dist 5.375% 5/1/2025 AAA 700 736,547 Huron MI Sch Dist(11) 5.25% 5/1/2021 AAA 250 265,378 Kaleva Norman Etc MI Sch Dist Bldg & Site(10) 6.00% 5/1/2025 Aaa 600 711,090 Laingsburg MI Cmnty Sch Dist Sch Bldg & Site Bd 5.25% 5/1/2026 AAA 450 469,395 Lake Orion MI Cmnty Sch Dist Ref 5.125% 5/1/2022 AAA 550 574,217 Memphis MI Cmnty Sch(10) 5.25% 5/1/2029 Aaa 150 153,705 Paw Paw MI Pub Sch Dist Sch Bldg & Site 6.00% 5/1/2030 AAA 1,325 1,494,030 Saline MI Area Sch(10) 5.50% 5/1/2015 AAA 750 804,533 South Lyon MI Cmnty Sch(11) 5.50% 5/1/2023 AAA 1,425 1,524,551 South Lyon MI Cmnty Sch Sch Bldg and Site(10) 5.25% 5/1/2022 AAA 1,000 1,061,480 Southfield MI Pub Schs Sch Bldg & Site-Ser A(10) 5.25% 5/1/2021 AAA 1,025 1,113,324 Warren MI Cons Sch Dist Sch Bldg & Site(10) 5.00% 5/1/2027 AAA 1,000 1,015,170 Wayne Charter Cnty MI Arpt Hotel-Detroit Met Arpt-A(15) 5.50% 12/1/2018 AAA 1,500 1,661,700 Wayne Cnty MI Bldg Auth Cap Impt Ser A(15) 5.25% 6/1/2016 AAA 500 544,395 ------------- TOTAL 18,678,662 ------------- HEALTHCARE 1.66% Michigan St Hosp Fin Auth Rev Ref Trinity Hlth Ser A(2)(17) 6.00% 12/1/2027 AAA 1,000 1,134,950 ------------- HOUSING 0.95% Michigan St Hsg Dev Auth Ser D 5.95% 12/1/2016 AA+ 500 528,275
SEE NOTES TO FINANCIAL STATEMENTS. 82 SCHEDULE OF INVESTMENTS (CONTINUED) MICHIGAN TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Michigan St Hsg Dev Auth Ser E AMT 6.20% 12/1/2027 AA+ $ 115 $ 119,506 ------------- TOTAL 647,781 ------------- LEASE 3.38% Grand Rapids MI Pub Sch(15) 5.00% 11/1/2021 AAA 250 261,308 Michigan St Ctfs Partn(2) Zero Coupon 6/1/2022 AAA 2,000 807,460 Michigan St Hse Representative Ctfs Partn(2) Zero Coupon 8/15/2024 AAA 3,565 1,241,404 ------------- TOTAL 2,310,172 ------------- MISCELLANEOUS 4.66% MI St Bldg Auth Rev Ref-Facs Prog-Ser I(11) 5.00% 10/15/2009 AAA 1,500 1,701,600 Michigan Muni Bd Auth Rev(2) 6.75% 11/1/2014 AAA 295 318,033 Michigan St Environmental Ref(15)(14) 5.50% 12/1/2013 AAA 1,000 1,162,290 ------------- TOTAL 3,181,923 ------------- POWER 4.56% Lowell MI Elec Supply Sys Rev(15) 5.00% 8/1/2027 AAA 1,000 1,014,190 MI St Strategic Fd Ltd Oblig(2) 7.00% 5/1/2021 AAA 500 651,420 MI St Strategic Fd Ltd Oblig Rev Detroit Fd Ser BB(15) 7.00% 7/15/2008 AAA 350 422,856 Puerto Rico Elec Pwr Auth Pwr Rev Ser NN(15) 5.00% 7/1/2032 AAA 1,000 1,025,530 ------------- TOTAL 3,113,996 ------------- PRE-REFUNDED 27.98% Alpena MI Pub Sch(15) 5.625% 5/1/2022 AAA 200 226,984 Alpena MI Pub Sch(15) 5.625% 5/1/2022 AAA 300 340,476 Anchor Bay MI Sch Dist Sch Bldg & Site Ser I(10) 6.00% 5/1/2023 AAA 1,100 1,303,665 Eastern MI Univ Rev(10) 5.50% 6/1/2027 AAA 500 567,950 Greenville MI Pub Sch Ref(11) 6.00% 5/1/2025 AAA 1,000 1,185,150 Hartland MI Cons Sch Dist(10) 6.00% 5/1/2021 AAA 1,950 2,322,450 Howell MI Pub Sch(15) 6.00% 5/1/2025 AAA 1,100 1,262,668 Huron Valley MI Sch Dist(10) 5.75% 5/1/2022 AAA 250 284,810 Kalamazoo MI Hosp Fin Auth Fac Rev Hosp Rev RIBs ETM(10) 9.408% 6/1/2011 AAA 2,000 2,156,040 Lake Orion MI Cmnty Sch Dist(2) 7.00% 5/1/2020 AAA 1,050 1,158,696 Lake Orion MI Cmnty Sch Dist Ser A(10) 6.00% 5/1/2017 AAA 1,335 1,589,985
SEE NOTES TO FINANCIAL STATEMENTS. 83 SCHEDULE OF INVESTMENTS (CONTINUED) MICHIGAN TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Lakeview MI Cmnty Sch(10) 5.60% 5/1/2022 AAA $ 210 $ 238,153 Michigan Muni Bd Auth Rev Ser G(2) 6.75% 11/1/2014 AAA 1,205 1,303,605 Potterville MI Pub Sch(11) 6.00% 5/1/2029 AAA 1,000 1,185,150 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser B 6.50% 7/1/2027 A 1,000 1,234,200 Puerto Rico Comwlth Pub Impt RIBs 10.54% 7/1/2029 A- 925 1,099,307 Puerto Rico Comwlth Ser A ETM 5.50% 10/1/2040 AAA 1,000 1,090,640 Puerto Rico Elec Pwr Auth Ser T RIBs(11) 11.486% 7/1/2018 AAA 500 559,045 ------------- TOTAL 19,108,974 ------------- TRANSPORTATION 6.04% Kent Cnty MI Arpt Fac Rev Ref Kent Cnty Intl Arpt 5.00% 1/1/2020 AAA 700 721,126 Michigan St Comprehensive Ser B(11) 5.25% 5/15/2020 AAA 1,000 1,080,460 Michigan St Comprehensive Transn Ref Ser A(11) 5.00% 11/1/2021 AAA 700 728,749 Puerto Rico Comwlth Hwy & Transn Auth Rev Rites RIBs 9.853% 1/1/2010 NR 500 580,460 Wayne Charter Cnty MI Arpt Hotel-Detroit Met Arpt-A(15) 5.00% 12/1/2030 AAA 1,000 1,009,450 ------------- TOTAL 4,120,245 ------------- WATER/SEWER 12.53% Detroit MI Disp Rev Ref Ser B(15) 5.25% 7/1/2021 AAA 805 844,010 Detroit MI Disp Rev Ref-Sr Lien-Ser A(11) 5.00% 7/1/2028 AAA 1,000 1,013,790 Detroit MI Wtr Supply Sys SR Lien-Ser A(15) 5.00% 7/1/2034 AAA 1,000 1,006,060 Grand Rapids MI San Swr Sys Rev Ref & Impt Ser A(10) 4.75% 1/1/2028 AAA 1,050 1,039,479 Lansing MI Brd Wtr & Lt Wtr Supply Steam & Elec Util Sys(11) 5.00% 7/1/2022 AAA 1,865 1,934,807 Michigan Muni Bd Auth Rev Drinking Wtr St Revolving FD 5.00% 10/1/2024 AAA 1,000 1,022,530 Muskegon Heights MI Wtr Sys Ser A(15) 5.625% 11/1/2020 Aaa 300 331,533 Muskegon Heights MI Wtr Sys Ser A(15) 5.625% 11/1/2025 Aaa 320 350,736 Ypsilanti MI Wtr Supply & Sew Disp Sys Rev Ser C(2) 5.00% 9/1/2027 AAA 1,000 1,014,320 ------------- TOTAL 8,557,265 ------------- TOTAL MUNICIPAL BONDS (Cost $61,724,411) $ 66,757,481 ==============================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 84 SCHEDULE OF INVESTMENTS (CONTINUED) PENNSYLVANIA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS 97.91% EDUCATION 15.96% Lehigh Cnty PA Gen Purp Auth Rev Desales University Pj(16) 5.125% 12/15/2023 AA $ 1,000 $ 1,026,120 Lycoming Cnty PA Auth College Rev College of Technology(2) 5.25% 5/1/2032 Aaa 700 724,395 Pennsylvania St Higher Ed Facs Auth Rev Auth Rev Lafayette College Pj 6.00% 5/1/2030 AA- 1,425 1,606,787 Pennsylvania St Higher Ed Facs Auth Rev Auth Rev Univ Sciences Phil(15) 5.25% 11/1/2025 AAA 1,000 1,029,550 Pennsylvania St Higher Ed Facs Auth Rev Clarion Univ(18) 5.00% 7/1/2033 AAA 1,000 1,007,600 Pennsylvania St Higher Ed Facs Auth Rev Drexel Univ-Ser A 5.20% 5/1/2032 A 600 609,084 Pennsylvania St Higher Ed Facs Auth Rev Univ of Scranton(2) 5.75% 11/1/2017 AAA 1,000 1,143,590 Pennsylvania St Higher Ed Fac Auth Drexel Univ 6.00% 5/1/2029 A 800 860,216 Pennsylvania St Higher Ed Fac Auth Moravian College Pj 5.375% 7/1/2031 AA 1,000 1,027,630 Pennsylvania St Higher Ed Fac Auth Univ of the Arts(16) 5.625% 3/15/2025 AA 1,000 1,045,840 Pennsylvania St Higher Ed Fac Auth Univ of the Arts(16) 5.75% 3/15/2030 AA 500 534,350 Philadelphia PA Auth Ind Dev Rev Ed Cmnty Foreign Med Grads(15) 5.00% 6/1/2015 AAA 250 267,988 State Pub Sch Bldg Auth PA College Rev(2) Zero Coupon 7/15/2014 AAA 295 188,039 State Pub Sch Bldg Auth PA College Rev(2) Zero Coupon 7/15/2015 AAA 295 178,280 State Pub Sch Bldg Auth PA College Rev(2) Zero Coupon 7/15/2016 AAA 295 168,486 State Pub Sch Bldg Auth PA Daniel Boone Sch Dist B(15) 5.00% 4/1/2028 AAA 500 507,550 State Pub Sch Bldg Auth PA Northhampton Area Cmnty Coll(2) 5.75% 3/1/2020 AAA 1,775 2,000,816 State Pub Sch Bldg Auth PA Rev Del Cnty Cmnty College Pj(15) 5.50% 10/1/2020 AAA 800 873,096 State Pub Sch Bldg Auth PA Sch Rev Lease-Philadelphia Sch(11) 5.25% 6/1/2027 AAA 1,000 1,043,830 ------------- Total 15,843,247 -------------
SEE NOTES TO FINANCIAL STATEMENTS. 85 SCHEDULE OF INVESTMENTS (CONTINUED) PENNSYLVANIA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ GENERAL OBLIGATION 20.53% Delaware Valley PA Regl Fin Auth Loc Govt Rev Ser C(2) 7.75% 7/1/2027 AAA $ 1,000 $ 1,383,120 Mifflin Cnty PA(10) 5.625% 9/1/2031 AAA 2,500 2,661,400 Montgomery Cnty PA 5.00% 9/15/2022 Aaa 625 646,944 Pennsbury PA Sch Dist(10) 5.50% 1/15/2020 Aaa 1,000 1,099,230 Philadelphia PA Sch Dist Ser A(11) 5.50% 2/1/2031 AAA 500 529,390 Philadelphia PA Sch Dist Ser A(11) 5.75% 2/1/2019 AAA 450 506,866 Philadelphia PA Sch Dist Ser A(11) 5.75% 2/1/2020 AAA 250 279,047 Philadelphia PA Sch Dist Ser A(11) 5.75% 2/1/2021 AAA 500 556,415 Philadelphia PA Sch Dist Ser A(11) 5.75% 2/1/2030 AAA 1,250 1,371,038 Philadelphia PA Sch Dist Ser B(10) 5.625% 8/1/2021 AAA 1,000 1,097,180 Philadelphia PA Sch Dist Ser B(10) 5.625% 8/1/2022 AAA 1,000 1,091,810 Philadelphia, PA Tax & Rev Antic Nts 2.00% 6/30/2004 MIG1 1,000 1,007,340 Plum Boro PA Sch Dist(10) 5.25% 9/15/2030 AAA 1,000 1,030,760 Puerto Rico Comwlth Pub Impt Ser A(10) 5.00% 7/1/2032 AAA 750 767,010 Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 2,750 2,852,850 Radnor Twp PA Sch Dist 5.75% 3/15/2026 Aa3 1,200 1,292,268 Riverside PA Sch Dist(10) 5.50% 10/15/2020 AAA 1,000 1,091,800 Tredyffrin-Easttown PA Sch Dist 5.50% 2/15/2017 Aaa 1,000 1,116,570 ------------- TOTAL 20,381,038 ------------- HEALTHCARE 7.64% Allegheny Cnty PA Hosp Dev Catholic Health East Issue 5.50% 11/15/2032 A 1,750 1,763,615 Chester Cnty PA Hlth & Ed Fac Auth Hlth Sys Rev RIBs(2) 10.20% 5/15/2020 AAA 2,600 2,791,724 Delaware Cnty PA Auth Hosp Rev Crozer Chester Med Ctr(1)(4) 5.375% 12/1/2018 A 1,000 1,042,430 Puerto Rico Ind Tourist Ed Med Mutuo Oblig Grp Ser A(15) 6.25% 7/1/2024 AAA 850 915,373 York Cnty PA Hosp Auth Rev York Hosp(2) 5.25% 7/1/2017 AAA 1,000 1,071,830 ------------- TOTAL 7,584,972 ------------- HOUSING 1.09% Pennsylvania Hsg Fin Agy Sing Fam Mtg Ser 41-B AMT 6.65% 4/1/2025 AA+ 510 522,770
SEE NOTES TO FINANCIAL STATEMENTS. 86 SCHEDULE OF INVESTMENTS (CONTINUED) PENNSYLVANIA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Pennsylvania Hsg Fin Agy Sing Fam Mtg Ser 42 AMT 6.85% 4/1/2025 AA+ $ 540 $ 557,615 ------------- TOTAL 1,080,385 ------------- INDUSTRIAL 4.97% Allegheny Cnty PA Ind Dev Auth Rev Envr Impt USX Pj 6.10% 7/15/2020 BBB+ 1,000 1,027,090 Bradford Cnty PA Ind Dev Auth Intl Paper Co Pj Ser A AMT 6.60% 3/1/2019 BBB 1,250 1,302,087 Philadelphia PA Auth For Ind Dev Lease Rev Ser B(11) 5.125% 10/1/2026 AAA 1,000 1,021,310 York Cnty PA Ind Dev Auth Poll Ctrl Rev Svc Elec & Gas Ser A(15) 6.45% 10/1/2019 AAA 1,475 1,579,238 ------------- TOTAL 4,929,725 ------------- LEASE 1.85% West Middlesex Area Sch Dist PA Cap Apprec Ser A(11) Zero Coupon 6/15/2032 AAA 935 204,887 York PA Gen Auth Gtd Rev York City Recreation Corp(2) 5.50% 5/1/2018 AAA 1,475 1,635,642 ------------- TOTAL 1,840,529 ------------- MISCELLANEOUS 5.26% Allegheny Cnty PA Redev Auth Tax Inc Rev Wtrfrt Pj Ser A 6.30% 12/15/2018 A-(c) 1,000 1,112,270 Montgomery Cnty PA Ind Dev Auth Rev Hill Sch Pj(15) 5.35% 8/15/2027 Aaa 2,250 2,314,643 Washington Cnty PA Auth Rev Cap Fdg Rev Pj & Equip Prog(2) 6.15% 12/1/2029 AAA 1,525 1,799,225 ------------- TOTAL 5,226,138 ------------- PRE-REFUNDED 18.42% Allegheny Cnty PA Port Auth Sp Rev Transn(15) 6.00% 3/1/2013 AAA 2,000 2,377,480 Allegheny Cnty PA Port Auth Sp Rev Transn(15) 6.125% 3/1/2029 AAA 500 597,520 Bethlehem PA Area Sch Dist(15) 6.00% 3/1/2016 AAA 1,000 1,111,700 Childrens Trust Fund PR 6.00% 7/1/2026 AAA 750 893,993 Pennsylvania Conv Ctr Auth Rev Ser A ETM(10) 6.70% 9/1/2016 AAA 855 1,064,877
SEE NOTES TO FINANCIAL STATEMENTS. 87 SCHEDULE OF INVESTMENTS (CONTINUED) PENNSYLVANIA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Pennsylvania Intergovt Coop Auth Spl Tax Rev Funding Prog(10) 6.75% 6/15/2021 AAA $ 2,000 $ 2,193,320 Philadelphia PA Gas Wks Rev Twelfth Ser B ETM(15) 7.00% 5/15/2020 AAA 2,220 2,840,113 Puerto Rico Comwlth 6.45% 7/1/2017 AAA 1,900 2,006,343 Puerto Rico Comwlth(15)(14) 6.45% 7/1/2017 AAA 700 739,179 Puerto Rico Comwlth Hwy Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 A 1,000 1,127,910 Puerto Rico Elec Pwr Auth Rev Ser X 6.00% 7/1/2015 Aaa 1,000 1,106,820 Puerto Rico Elec Pwr Auth Rev Ser X 6.125% 7/1/2021 Aaa 500 554,485 Puerto Rico Elec Pwr Auth Ser T RIBs(11) 11.486% 7/1/2018 AAA 1,500 1,677,135 ------------- TOTAL 18,290,875 ------------- TRANSPORTATION 17.70% Allegheny Cnty PA Arpt Rev(15) 5.00% 1/1/2017 AAA 1,000 1,039,630 Delaware River Port Auth PA & NJ Ref Port Dist Pj Ser A(11) 5.20% 1/1/2027 AAA 1,000 1,035,160 Delaware River Port Auth PA & NJ Rev(11) 6.00% 1/1/2019 AAA 1,000 1,144,510 Pennsylvania St Tpk Comm Oil Franchise Tax Rev Sub-Ser B(15) 5.00% 12/1/2031 AAA 1,000 1,012,660 Pennsylvania St Tpk Commn(2) 5.50% 7/15/2033 AAA 3,000 3,240,780 Puerto Rico Comwlth Hwy & Ser G(10) 5.25% 7/1/2020 AAA 1,000 1,093,230 Puerto Rico Comwlth Hwy & Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 500 529,410 Puerto Rico Comwlth Hwy & Transn Auth Rev Rites RIBs 9.853% 1/1/2010 NR 2,750 3,192,530 Puerto Rico Comwlth Hwy & Transn Auth Rev Ser D 5.75% 7/1/2041 A 2,000 2,160,920 Puerto Rico Comwlth Hwy Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A 2,000 2,118,440 Puerto Rico Port Auth Rev Ser D AMT(10) 7.00% 7/1/2014 AAA 1,000 1,002,890 ------------- TOTAL 17,570,160 ------------- WATER/SEWER 4.49% Allegheny Cnty PA San Auth Swr Rev(15) 5.375% 12/1/2024 AAA 2,000 2,109,640 Bucks Cnty PA Wtr & Swr Auth Neshaminy Interceptor Swr Sys(2) 5.50% 6/1/2017 Aaa 465 513,118
SEE NOTES TO FINANCIAL STATEMENTS. 88 SCHEDULE OF INVESTMENTS (CONCLUDED) PENNSYLVANIA TAX-FREE TRUST SEPTEMBER 30, 2003
RATING: PRINCIPAL INTEREST MATURITY S&P OR AMOUNT INVESTMENTS RATE DATE MOODY'S(a) (000) VALUE ------------------------------------------------------------------------------------------------------------------------------ Bucks Cnty PA Wtr & Swr Auth Rev Ser A(2) 5.00% 6/1/2024 AAA $ 1,000 $ 1,021,080 North Huntingdon Township PA(2) 5.25% 4/1/2019 AAA 760 810,350 ------------- TOTAL 4,454,188 ------------- TOTAL MUNICIPAL BONDS (Cost $91,066,532) $ 97,201,257 ==============================================================================================================================
(a) Unaudited. (b) This investment has not been rated by an independent ratings service but is, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the rating shown. (c) This investment has been rated by Fitch IBCA. (d) Security purchased on a when-issued basis. ** Deferred-interest municipals pay no interest for a stipulated number of years, after which they pay a predetermined interest rate. # Variable rate security. This interest rate represents the rate at September 30, 2003. + Restricted security under Rule 144A. AMT-Income from the security may be subject to Alternative Minimum Tax. ETM-Escrow to Maturity. GTD-Guaranteed. Pre-refunded Bonds-A second bond has been issued in order to pay off the first bond issue. Proceeds from the sale of the second bond are held in an "escrow fund" consisting of U.S. Government debt until the first bond issue reaches maturity. PSF-Permanent School Fund. RIBs-Residual Interest Bond. The interest rate is subject to change periodically and inversely to the prevailing market rate. The interest rate represents the rate at September 30, 2003. NR-Not Rated. Insured or guaranteed by the indicated municipal bond insurance corporation or Federal agency: (1) American Capital Asset (2) American Municipal Bond Assurance Corporation (3) Bond Investors Guaranty (4) Certificate Bond Insurance (5) College Construction Loan Insurance Association (6) Custodian Receipt (7) Federal Home Loan Mortgage Corporation (8) Federal Housing Administration (9) Federal National Mortgage Association (10) Financial Guaranty Insurance Company (11) Financial Security Assurance, Inc. (12) Government National Mortgage Association (13) Government National Mortgage Association/Federal National Mortgage Association (14) Insurance Bond Certificate (15) Municipal Bond Investors Assurance (16) Radian Asset Assurance (17) Temporary Custodian Receipts (18) XL Capital Assurance, Inc. SEE NOTES TO FINANCIAL STATEMENTS. 89 STATEMENTS OF ASSETS AND LIABILITIES September 30, 2003
NATIONAL CALIFORNIA ASSETS: Investment in securities, at cost $ 574,135,163 $ 183,795,260 ----------------------------------------------------------------------------- Investment in securities, at value $ 606,082,471 $ 192,373,361 Cash 921,709 5,282 Receivables: Interest and dividends 8,366,393 2,619,429 Investment securities sold 34,767,185 3,539,939 Capital shares sold 164,799 50,155 Prepaid expenses and other assets 41,694 19,953 ----------------------------------------------------------------------------- TOTAL ASSETS 650,344,251 198,608,119 ----------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased 42,394,733 2,967,686 Capital shares reacquired 670,903 178,513 Management fees 245,351 78,623 12b-1 distribution fees 282,708 93,456 Fund administration 20,924 6,755 Directors' fees 293,927 172,814 To bank - - Dividends payable 1,964,535 644,073 Accrued expenses and other liabilities 181,509 127,132 ----------------------------------------------------------------------------- TOTAL LIABILITIES 46,054,590 4,269,052 ============================================================================= NET ASSETS $ 604,289,661 $ 194,339,067 ----------------------------------------------------------------------------- COMPOSITION OF NET ASSETS: Paid-in capital $ 589,993,940 $ 190,369,553 Distributions in excess of net investment income (1,835,360) (139,549) Accumulated net realized loss on investments (15,816,227) (4,469,038) Net unrealized appreciation on investments 31,947,308 8,578,101 ----------------------------------------------------------------------------- NET ASSETS $ 604,289,661 $ 194,339,067 ============================================================================= NET ASSETS BY CLASS: Class A Shares $ 515,694,305 $ 178,155,855 Class B Shares $ 39,121,677 - Class C Shares $ 49,473,679 $ 16,183,212 OUTSTANDING SHARES BY CLASS: Class A Shares 44,832,960 16,501,997 Class B Shares 3,393,938 - Class C Shares 4,295,184 1,498,124 NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (NET ASSETS DIVIDED BY OUTSTANDING SHARES): Class A Shares-Net asset value $ 11.50 $ 10.80 Class A Shares-Maximum offering price (Net asset value plus sales charge of 3.25%) $ 11.89 $ 11.16 Class B Shares-Net asset value $ 11.53 - Class C Shares-Net asset value $ 11.52 $ 10.80 =============================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 90
CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY ASSETS: Investment in securities, at cost $ 91,126,230 $ 68,141,741 $ 32,576,883 $ 142,763,494 $ 143,721,432 -------------------------------------------------------------------------------------------------------------------------- Investment in securities, at value $ 96,408,728 $ 73,293,352 $ 34,164,114 $ 150,656,131 $ 153,057,976 Cash 2,976 979,797 2,970,303 2,005,600 - Receivables: Interest and dividends 1,403,541 1,070,959 403,002 2,201,211 2,110,755 Investment securities sold - 81,420 12,000 215,756 40,977 Capital shares sold 554 22,570 65,970 31,101 134,365 Prepaid expenses and other assets 4,837 26,275 92 32,283 23,972 -------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 97,820,636 75,474,373 37,615,481 155,142,082 155,368,045 -------------------------------------------------------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased 780,144 - 453,517 879,409 - Capital shares reacquired 109,217 2,967 - 95,024 316,626 Management fees 39,375 31,468 14,533 62,145 62,969 12b-1 distribution fees 42,900 28,248 - 53,346 72,046 Fund administration 2,939 2,608 1,244 5,309 5,373 Directors' fees 25,699 18,849 1,567 29,359 43,375 To bank - - - - 477,296 Dividends payable 316,106 244,376 113,342 481,606 538,535 Accrued expenses and other liabilities 34,936 28,924 15,529 47,806 54,803 -------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 1,351,316 357,440 599,732 1,654,004 1,571,023 ========================================================================================================================== NET ASSETS $ 96,469,320 $ 75,116,933 $ 37,015,749 $ 153,488,078 $ 153,797,022 -------------------------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS: Paid-in capital $ 93,400,696 $ 73,884,177 $ 36,246,432 $ 146,691,481 $ 150,631,633 Distributions in excess of net investment income (164,899) (252,486) (114,910) (171,343) (439,953) Accumulated net realized loss on investments (2,048,975) (3,666,369) (703,004) (924,697) (5,731,202) Net unrealized appreciation on investments 5,282,498 5,151,611 1,587,231 7,892,637 9,336,544 -------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 96,469,320 $ 75,116,933 $ 37,015,749 $ 153,488,078 $ 153,797,022 ========================================================================================================================== NET ASSETS BY CLASS: Class A Shares $ 96,469,320 $ 75,116,933 $ 37,015,749 $ 153,488,078 $ 153,797,022 Class B Shares - - - - - Class C Shares - - - - - OUTSTANDING SHARES BY CLASS: Class A Shares 9,145,143 14,775,064 7,198,342 28,654,507 29,555,813 Class B Shares - - - - - Class C Shares - - - - - NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (NET ASSETS DIVIDED BY OUTSTANDING SHARES): Class A Shares-Net asset value $ 10.55 $ 5.08 $ 5.14 $ 5.36 $ 5.20 Class A Shares-Maximum offering price (Net asset value plus sales charge of 3.25%) $ 10.90 $ 5.25 $ 5.31 $ 5.54 $ 5.37 Class B Shares-Net asset value - - - - - Class C Shares-Net asset value - - - - - ==========================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 91 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) September 30, 2003
NEW YORK TEXAS ASSETS: Investment in securities, at cost $ 240,066,200 $ 70,378,331 --------------------------------------------------------------------------------- Investment in securities, at value $ 257,738,545 $ 78,241,022 Cash 9,235 4,567 Receivables: Interest and dividends 3,742,047 1,293,024 Investment securities sold - - Capital shares sold 124,565 64,899 From Lord, Abbett & Co. LLC - - Prepaid expenses and other assets 12,327 19,369 --------------------------------------------------------------------------------- TOTAL ASSETS 261,626,719 79,622,881 --------------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased 506,505 - Capital shares reacquired 229,718 7,200 Management fees 104,937 32,045 12b-1 distribution fees 122,873 67,022 Fund administration 8,963 2,831 Directors'/Trustees' fees 144,878 31,691 Dividends payable 896,670 267,164 Accrued expenses and other liabilities 80,078 29,444 --------------------------------------------------------------------------------- TOTAL LIABILITIES 2,094,622 437,397 ================================================================================= NET ASSETS $ 259,532,097 $ 79,185,484 ================================================================================= COMPOSITION OF NET ASSETS: Paid-in capital $ 246,729,575 $ 75,399,683 Undistributed (distributions in excess of) net investment income (920,238) (189,178) Accumulated net realized loss on investments (3,949,585) (3,887,712) Net unrealized appreciation on investments 17,672,345 7,862,691 --------------------------------------------------------------------------------- NET ASSETS $ 259,532,097 $ 79,185,484 ================================================================================= NET ASSETS BY CLASS: Class A Shares $ 247,153,418 $ 79,185,484 Class B Shares - - Class C Shares $ 12,378,679 - Class P Shares - - OUTSTANDING SHARES BY CLASS: Class A Shares 21,643,637 7,644,705 Class B Shares - - Class C Shares 1,084,265 - Class P Shares - - NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (NET ASSETS DIVIDED BY OUTSTANDING SHARES): Class A Shares-Net asset value $ 11.42 $ 10.36 Class A Shares-Maximum offering price (Net asset value plus sales charge of 3.25%) $ 11.80 $ 10.71 Class B Shares-Net asset value - - Class C Shares-Net asset value $ 11.42 - Class P Shares-Net asset value - - =================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 92
INSURED WASHINGTON INTERMEDIATE FLORIDA ASSETS: Investment in securities, at cost $ 45,652,838 $ 3,920,969 $ 81,652,553 ------------------------------------------------------------------------------------------------- Investment in securities, at value $ 49,117,510 $ 4,006,928 $ 89,083,210 Cash 29,678 276,159 36,896 Receivables: Interest and dividends 754,276 41,781 1,487,685 Investment securities sold 770,100 - 4,829,691 Capital shares sold 102,800 305,292 20,322 From Lord, Abbett & Co. LLC - 47,630 - Prepaid expenses and other assets 159 350 515 ------------------------------------------------------------------------------------------------- TOTAL ASSETS 50,774,523 4,678,140 95,458,319 ------------------------------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased - 326,337 10,198,291 Capital shares reacquired 37,951 - 23,803 Management fees 21,279 1,286 34,680 12b-1 distribution fees - 1,322 44,487 Fund administration 1,726 114 2,931 Directors'/Trustees' fees 16,155 663 38,812 Dividends payable 178,752 6,905 280,478 Accrued expenses and other liabilities 22,095 33,748 42,946 ------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 277,958 370,375 10,666,428 ================================================================================================= NET ASSETS $ 50,496,565 $ 4,307,765 $ 84,791,891 ================================================================================================= COMPOSITION OF NET ASSETS: Paid-in capital $ 49,135,533 $ 4,294,816 $ 85,104,740 Undistributed (distributions in excess of) net investment income 386,456 1,658 (167,738) Accumulated net realized loss on investments (2,490,096) (74,668) (7,575,768) Net unrealized appreciation on investments 3,464,672 85,959 7,430,657 ------------------------------------------------------------------------------------------------- NET ASSETS $ 50,496,565 $ 4,307,765 $ 84,791,891 ================================================================================================= NET ASSETS BY CLASS: Class A Shares $ 50,496,565 $ 3,672,488 $ 78,277,738 Class B Shares - $ 311,808 - Class C Shares - $ 313,486 $ 6,514,153 Class P Shares - $ 9,983 - OUTSTANDING SHARES BY CLASS: Class A Shares 9,699,730 369,499 16,045,904 Class B Shares - 31,397 - Class C Shares - 31,576 1,333,072 Class P Shares - 1,004 - NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (NET ASSETS DIVIDED BY OUTSTANDING SHARES): Class A Shares-Net asset value $ 5.21 $ 9.94 $ 4.88 Class A Shares-Maximum offering price (Net asset value plus sales charge of 3.25%) $ 5.39 $ 10.27 $ 5.04 Class B Shares-Net asset value - $ 9.93 - Class C Shares-Net asset value - $ 9.93 $ 4.89 Class P Shares-Net asset value - $ 9.94 - ================================================================================================= GEORGIA MICHIGAN PENNSYLVANIA ASSETS: Investment in securities, at cost $ 79,694,919 $ 61,724,411 $ 91,066,532 ------------------------------------------------------------------------------------------------- Investment in securities, at value $ 83,578,675 $ 66,757,481 $ 97,201,257 Cash 967,278 929,180 1,054,771 Receivables: Interest and dividends 1,331,803 1,159,902 1,388,680 Investment securities sold 104,171 - 65,000 Capital shares sold 13,317 100,868 86,666 From Lord, Abbett & Co. LLC - - - Prepaid expenses and other assets 236 - 2,667 ------------------------------------------------------------------------------------------------- TOTAL ASSETS 85,995,480 68,947,431 99,799,041 ------------------------------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased - - - Capital shares reacquired 207,735 362,778 37,718 Management fees 34,419 27,779 40,202 12b-1 distribution fees - - 46,295 Fund administration 2,953 2,367 3,429 Directors'/Trustees' fees 1,734 9,579 20,360 Dividends payable 265,339 218,450 323,582 Accrued expenses and other liabilities 42,653 36,905 47,833 ------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 554,833 657,858 519,419 ================================================================================================= NET ASSETS $ 85,440,647 $ 68,289,573 $ 99,279,622 ================================================================================================= COMPOSITION OF NET ASSETS: Paid-in capital $ 81,667,279 $ 65,391,301 $ 94,552,129 Undistributed (distributions in excess of) net investment income 41,241 (228,030) (343,942) Accumulated net realized loss on investments (151,629) (1,906,768) (1,063,290) Net unrealized appreciation on investments 3,883,756 5,033,070 6,134,725 ------------------------------------------------------------------------------------------------- NET ASSETS $ 85,440,647 $ 68,289,573 $ 99,279,622 ================================================================================================= NET ASSETS BY CLASS: Class A Shares $ 85,440,647 $ 68,289,573 $ 99,279,622 Class B Shares - - - Class C Shares - - - Class P Shares - - - OUTSTANDING SHARES BY CLASS: Class A Shares 15,181,731 12,746,023 18,837,413 Class B Shares - - - Class C Shares - - - Class P Shares - - - NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (NET ASSETS DIVIDED BY OUTSTANDING SHARES): Class A Shares-Net asset value $ 5.63 $ 5.36 $ 5.27 Class A Shares-Maximum offering price (Net asset value plus sales charge of 3.25%) $ 5.82 $ 5.54 $ 5.45 Class B Shares-Net asset value - - - Class C Shares-Net asset value - - - Class P Shares-Net asset value - - - =================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 93 STATEMENTS OF OPERATIONS For the Year Ended September 30, 2003
NATIONAL CALIFORNIA INVESTMENT INCOME: Interest $ 32,121,068 $ 10,507,826 Dividends 132,304 26,448 ----------------------------------------------------------------------------- Total investment income 32,253,372 10,534,274 ----------------------------------------------------------------------------- EXPENSES: Management fees 3,038,541 1,001,875 12b-1 distribution plan-Class A 1,797,559 662,145 12b-1 distribution plan-Class B 387,857 - 12b-1 distribution plan-Class C 469,697 155,630 Shareholder servicing 306,960 94,455 Market data 51,371 17,439 Professional 96,824 37,604 Reports to shareholders 56,404 19,126 Fund accounting 17,292 12,107 Fund administration 180,534 59,536 Custody 35,094 14,273 Directors' fees 19,710 6,460 Registration 60,297 9,228 Other - 2,031 ----------------------------------------------------------------------------- Gross expenses 6,518,140 2,091,909 Expense reductions (10,749) (4,575) ----------------------------------------------------------------------------- NET EXPENSES 6,507,391 2,087,334 ----------------------------------------------------------------------------- NET INVESTMENT INCOME 25,745,981 8,446,940 ----------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized loss on investments (3,633,689) (1,186,273) Net change in unrealized appreciation/depreciation on investments (7,999,689) (5,697,202) ============================================================================= NET REALIZED AND UNREALIZED LOSS (11,633,378) (6,883,475) ============================================================================= NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 14,112,603 $ 1,563,465 =============================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 94
CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY INVESTMENT INCOME: Interest $ 5,273,061 $ 3,952,587 $ 1,474,500 $ 7,700,032 $ 8,733,600 Dividends 7,835 - - - 14,424 -------------------------------------------------------------------------------------------------------------------------- Total investment income 5,280,896 3,952,587 1,474,500 7,700,032 8,748,024 -------------------------------------------------------------------------------------------------------------------------- EXPENSES: Management fees 494,330 380,865 156,207 741,604 797,266 12b-1 distribution plan-Class A 351,430 268,236 - 529,899 572,390 12b-1 distribution plan-Class B - - - - - 12b-1 distribution plan-Class C - - - - - Shareholder servicing 48,487 35,539 18,048 88,325 76,454 Market data 8,638 5,889 2,665 9,818 13,963 Professional 21,849 18,344 10,853 28,676 31,647 Reports to shareholders 9,362 7,116 2,572 13,282 15,345 Fund accounting 11,701 9,127 11,696 11,251 13,936 Fund administration 29,320 22,655 9,321 44,102 47,452 Custody 7,253 11,474 7,260 13,030 11,574 Directors' fees 3,059 2,215 774 4,022 5,000 Registration 5,336 2,653 4,592 8,550 4,535 Other 4,586 - - - - -------------------------------------------------------------------------------------------------------------------------- Gross expenses 995,351 764,113 223,988 1,492,559 1,589,562 Expense reductions (2,313) (10,400) (9,750) (18,931) (3,290) -------------------------------------------------------------------------------------------------------------------------- NET EXPENSES 993,038 753,713 214,238 1,473,628 1,586,272 -------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 4,287,858 3,198,874 1,260,262 6,226,404 7,161,752 -------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized loss on investments (337,794) (1,515,044) (135,034) (64,372) (2,262,823) Net change in unrealized appreciation/depreciation on investments (1,137,773) (307,015) (12,332) (1,636,391) (2,907,312) ========================================================================================================================== NET REALIZED AND UNREALIZED LOSS (1,475,567) (1,822,059) (147,366) (1,700,763) (5,170,135) ========================================================================================================================== NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,812,291 $ 1,376,815 $ 1,112,896 $ 4,525,641 $ 1,991,617 ==========================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 95 STATEMENTS OF OPERATIONS (CONTINUED) For the Year Ended September 30, 2003
NEW YORK TEXAS INVESTMENT INCOME: Interest $ 14,051,454 $ 4,336,281 Dividends 32,954 27,863 ---------------------------------------------------------------------------------- Total investment income 14,084,408 4,364,144 ---------------------------------------------------------------------------------- EXPENSES: Management fees 1,281,043 399,392 12b-1 distribution plan-Class A 799,751 292,554 12b-1 distribution plan-Class B - - 12b-1 distribution plan-Class C 105,421 - 12b-1 distribution plan-Class P - - Shareholder servicing 133,450 42,599 Market data 22,115 7,004 Professional 45,554 18,843 Reports to shareholders 24,321 7,511 Fund accounting 12,019 11,646 Fund administration 76,314 23,736 Custody 12,250 4,160 Directors'/Trustees' fees 7,785 2,415 Registration 9,197 5,650 Offering - - Other - 3,061 ---------------------------------------------------------------------------------- Gross expenses 2,529,220 818,571 Expense reductions (4,519) (2,063) 12b-1 distribution plan-Class A reimbursement - - Expenses assumed by Lord, Abbett & Co. LLC - - Management fee waived - - ---------------------------------------------------------------------------------- NET EXPENSES 2,524,701 816,508 ---------------------------------------------------------------------------------- NET INVESTMENT INCOME 11,559,707 3,547,636 ---------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized loss on investments (106,572) (545,423) Net change in unrealized appreciation/depreciation on investments (4,912,170) (462,922) ================================================================================== NET REALIZED AND UNREALIZED GAIN (LOSS) (5,018,742) (1,008,345) ================================================================================== NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,540,965 $ 2,539,291 ==================================================================================
*For the period June 23,2003 (commencement of investment operations) to September 30,2003. SEE NOTES TO FINANCIAL STATEMENTS. 96
INSURED WASHINGTON INTERMEDIATE* FLORIDA INVESTMENT INCOME: Interest $ 2,645,982 $ 20,826 $ 4,672,675 Dividends 17,553 384 22,047 -------------------------------------------------------------------------------------------------- Total investment income 2,663,535 21,210 4,694,722 -------------------------------------------------------------------------------------------------- EXPENSES: Management fees 248,504 3,590 437,411 12b-1 distribution plan-Class A - 2,483 270,100 12b-1 distribution plan-Class B - 253 - 12b-1 distribution plan-Class C - 606 60,030 12b-1 distribution plan-Class P - 12 - Shareholder servicing 32,823 482 53,323 Market data 4,378 298 7,887 Professional 14,034 34,550 35,593 Reports to shareholders 4,534 6,982 8,340 Fund accounting 8,608 - 11,661 Fund administration 14,781 319 25,971 Custody 2,756 1,153 6,321 Directors'/Trustees' fees 1,427 667 2,821 Registration 6,833 1,070 4,489 Offering - 17,280 - Other - 2,981 27,259 -------------------------------------------------------------------------------------------------- Gross expenses 338,678 72,726 951,206 Expense reductions (1,903) - (2,257) 12b-1 distribution plan-Class A reimbursement - (709) - Expenses assumed by Lord, Abbett & Co. LLC - (65,782) - Management fee waived - (3,590) - -------------------------------------------------------------------------------------------------- NET EXPENSES 336,775 2,645 948,949 -------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 2,326,760 18,565 3,745,773 -------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized loss on investments (536,677) (74,668) (1,142,594) Net change in unrealized appreciation/depreciation on investments (528,302) 85,959 (558,447) ================================================================================================== NET REALIZED AND UNREALIZED GAIN (LOSS) (1,064,979) 11,291 (1,701,041) ================================================================================================== NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,261,781 $ 29,856 $ 2,044,732 ================================================================================================== GEORGIA MICHIGAN PENNSYLVANIA INVESTMENT INCOME: Interest $ 3,868,767 $ 3,242,063 $ 5,302,381 Dividends - - - -------------------------------------------------------------------------------------------------- Total investment income 3,868,767 3,242,063 5,302,381 -------------------------------------------------------------------------------------------------- EXPENSES: Management fees 391,842 324,518 499,671 12b-1 distribution plan-Class A - - 246,366 12b-1 distribution plan-Class B - - - 12b-1 distribution plan-Class C - - - 12b-1 distribution plan-Class P - - - Shareholder servicing 47,423 47,907 65,456 Market data 6,282 5,367 8,734 Professional 30,057 26,274 39,824 Reports to shareholders 6,152 5,398 9,365 Fund accounting 12,311 9,740 10,662 Fund administration 23,316 19,274 29,707 Custody 10,155 10,891 8,079 Directors'/Trustees' fees 1,380 1,522 3,121 Registration 5,461 6,549 5,105 Offering - - - Other 4,681 13,972 19,564 -------------------------------------------------------------------------------------------------- Gross expenses 539,060 471,412 945,654 Expense reductions (9,601) (15,453) (8,523) 12b-1 distribution plan-Class A reimbursement - - - Expenses assumed by Lord, Abbett & Co. LLC - - - Management fee waived - - - -------------------------------------------------------------------------------------------------- NET EXPENSES 529,459 455,959 937,131 -------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 3,339,308 2,786,104 4,365,250 -------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized loss on investments (151,629) (128,687) (299,948) Net change in unrealized appreciation/depreciation on investments (636,285) (587,723) (1,645,092) ================================================================================================== NET REALIZED AND UNREALIZED GAIN (LOSS) (787,914) (716,410) (1,945,040) ================================================================================================== NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,551,394 $ 2,069,694 $ 2,420,210 ==================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 97 STATEMENTS OF CHANGES IN NET ASSETS Year Ended September 30, 2003
INCREASE (DECREASE) IN NET ASSETS NATIONAL CALIFORNIA OPERATIONS: Net investment income $ 25,745,981 $ 8,446,940 Net realized loss on investments (3,633,689) (1,186,273) Net change in unrealized appreciation/depreciation on investments (7,999,689) (5,697,202) ----------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 14,112,603 1,563,465 ============================================================================= DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A (23,106,774) (8,268,393) Class B (1,475,958) - Class C (1,798,412) (602,949) ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS (26,381,144) (8,871,342) ============================================================================= CAPITAL SHARE TRANSACTIONS: Net proceeds from sales of shares 87,871,238 21,862,214 Reinvestment of distributions 17,228,752 4,746,343 Cost of shares reacquired (100,082,141) (31,432,216) ----------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS 5,017,849 (4,823,659) ============================================================================= NET INCREASE (DECREASE) IN NET ASSETS (7,250,692) (12,131,536) ============================================================================= NET ASSETS: Beginning of year 611,540,353 206,470,603 ----------------------------------------------------------------------------- END OF YEAR $ 604,289,661 $ 194,339,067 ============================================================================= DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (1,835,360) $ (139,549) =============================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 98
INCREASE (DECREASE) IN NET ASSETS CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY OPERATIONS: Net investment income $ 4,287,858 $ 3,198,874 $ 1,260,262 $ 6,226,404 $ 7,161,752 Net realized loss on investments (337,794) (1,515,044) (135,034) (64,372) (2,262,823) Net change in unrealized appreciation/depreciation on investments (1,137,773) (307,015) (12,332) (1,636,391) (2,907,312) -------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,812,291 1,376,815 1,112,896 4,525,641 1,991,617 ========================================================================================================================== DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A (4,356,708) (3,177,488) (1,329,120) (6,009,033) (7,202,044) Class B - - - - - Class C - - - - - -------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS (4,356,708) (3,177,488) (1,329,120) (6,009,033) (7,202,044) ========================================================================================================================== CAPITAL SHARE TRANSACTIONS: Net proceeds from sales of shares 8,277,443 5,689,315 13,529,899 21,797,533 12,943,621 Reinvestment of distributions 2,133,051 1,718,249 1,074,347 4,742,370 4,120,036 Cost of shares reacquired (12,755,193) (10,478,031) (4,940,488) (16,574,053) (22,789,599) -------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (2,344,699) (3,070,467) 9,663,758 9,965,850 (5,725,942) ========================================================================================================================== NET INCREASE (DECREASE) IN NET ASSETS (3,889,116) (4,871,140) 9,447,534 8,482,458 (10,936,369) ========================================================================================================================== NET ASSETS: Beginning of year 100,358,436 79,988,073 27,568,215 145,005,620 164,733,391 -------------------------------------------------------------------------------------------------------------------------- END OF YEAR $ 96,469,320 $ 75,116,933 $ 37,015,749 $ 153,488,078 $ 153,797,022 ========================================================================================================================== DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (164,899) $ (252,486) $ (114,910) $ (171,343) $ (439,953) ==========================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 99 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) Year Ended September 30, 2003
INCREASE (DECREASE) IN NET ASSETS NEW YORK TEXAS OPERATIONS: Net investment income $ 11,559,707 $ 3,547,636 Net realized loss on investments (106,572) (545,423) Net change in unrealized appreciation/depreciation on investments (4,912,170) (462,922) ---------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 6,540,965 2,539,291 ================================================================================== DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A (11,283,897) (3,451,579) Class B - - Class C (421,949) - Class P - - Net realized gain Class A - - ---------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS (11,705,846) (3,451,579) ================================================================================== CAPITAL SHARE TRANSACTIONS: Net proceeds from sales of shares 39,026,822 5,794,790 Reinvestment of distributions 6,958,868 2,443,223 Cost of shares reacquired (42,918,061) (9,508,780) ---------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS 3,067,629 (1,270,767) ================================================================================== NET INCREASE (DECREASE) IN NET ASSETS (2,097,252) (2,183,055) ================================================================================== NET ASSETS: Beginning of period 261,629,349 81,368,539 ---------------------------------------------------------------------------------- END OF PERIOD $ 259,532,097 $ 79,185,484 ================================================================================== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ (920,238) $ (189,178) ==================================================================================
*For the period June 23,2003 (commencement of investment operations) to September 30,2003. SEE NOTES TO FINANCIAL STATEMENTS. 100
INSURED INCREASE (DECREASE) IN NET ASSETS WASHINGTON INTERMEDIATE* FLORIDA OPERATIONS: Net investment income $ 2,326,760 $ 18,565 $ 3,745,773 Net realized loss on investments (536,677) (74,668) (1,142,594) Net change in unrealized appreciation/depreciation on investments (528,302) 85,959 (558,447) -------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,261,781 29,856 2,044,732 ================================================================================================== DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A (2,382,580) (17,525) (3,594,847) Class B - (538) - Class C - (1,178) (226,244) Class P - (60) - Net realized gain Class A - - - -------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS (2,382,580) (19,301) (3,821,091) ================================================================================================== CAPITAL SHARE TRANSACTIONS: Net proceeds from sales of shares 7,523,395 4,290,634 8,839,350 Reinvestment of distributions 1,662,262 11,784 1,593,473 Cost of shares reacquired (6,616,919) (5,208) (14,116,455) -------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS 2,568,738 4,297,210 (3,683,632) ================================================================================================== NET INCREASE (DECREASE) IN NET ASSETS 1,447,939 4,307,765 (5,459,991) ================================================================================================== NET ASSETS: Beginning of period 49,048,626 - 90,251,882 -------------------------------------------------------------------------------------------------- END OF PERIOD $ 50,496,565 $ 4,307,765 $ 84,791,891 ================================================================================================== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ 386,456 $ 1,658 $ (167,738) ================================================================================================== INCREASE (DECREASE) IN NET ASSETS GEORGIA MICHIGAN PENNSYLVANIA OPERATIONS: Net investment income $ 3,339,308 $ 2,786,104 $ 4,365,250 Net realized loss on investments (151,629) (128,687) (299,948) Net change in unrealized appreciation/depreciation on investments (636,285) (587,723) (1,645,092) -------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,551,394 2,069,694 2,420,210 ================================================================================================== DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A (3,203,266) (2,853,218) (4,360,779) Class B - - - Class C - - - Class P - - - Net realized gain Class A (214,585) - - -------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS (3,417,851) (2,853,218) (4,360,779) ================================================================================================== CAPITAL SHARE TRANSACTIONS: Net proceeds from sales of shares 29,415,648 19,167,974 9,858,382 Reinvestment of distributions 2,740,742 1,886,197 2,139,148 Cost of shares reacquired (15,685,717) (10,612,775) (12,279,254) -------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS 16,470,673 10,441,396 (281,724) ================================================================================================== NET INCREASE (DECREASE) IN NET ASSETS 15,604,216 9,657,872 (2,222,293) ================================================================================================== NET ASSETS: Beginning of period 69,836,431 58,631,701 101,501,915 -------------------------------------------------------------------------------------------------- END OF PERIOD $ 85,440,647 $ 68,289,573 $ 99,279,622 ================================================================================================== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ 41,241 $ (228,030) $ (343,942) ==================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 101 STATEMENTS OF CHANGES IN NET ASSETS Year Ended September 30, 2002
INCREASE (DECREASE) IN NET ASSETS NATIONAL CALIFORNIA OPERATIONS: Net investment income $ 27,146,448 $ 9,507,076 Net realized gain on investments 3,472,516 245,780 Net change in unrealized appreciation/depreciation on investments 17,539,926 4,841,134 ----------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 48,158,890 14,593,990 ============================================================================= DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Class A (24,360,519) (8,729,491) Class B (1,306,098) - Class C (1,629,500) (501,001) ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS (27,296,117) (9,230,492) ============================================================================= CAPITAL SHARE TRANSACTIONS: Net proceeds from sales of shares 112,022,029 25,394,908 Reinvestment of distributions 17,554,600 5,008,377 Cost of shares reacquired (117,659,510) (33,511,579) ----------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 11,917,119 (3,108,294) ============================================================================= NET INCREASE (DECREASE) IN NET ASSETS 32,779,892 2,255,204 ============================================================================= NET ASSETS: Beginning of year 578,760,461 204,215,399 ----------------------------------------------------------------------------- END OF YEAR $ 611,540,353 $ 206,470,603 ============================================================================= UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ (1,909,201) $ 284,853 =============================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 102
INCREASE (DECREASE) IN NET ASSETS CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY OPERATIONS: Net investment income $ 4,751,298 $ 3,411,857 $ 1,220,309 $ 5,963,454 $ 7,597,934 Net realized gain on investments 749,305 382,498 30,099 1,018,147 977,977 Net change in unrealized appreciation/depreciation on investments 2,855,223 2,514,391 883,643 3,322,968 3,901,863 -------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 8,355,826 6,308,746 2,134,051 10,304,569 12,477,774 ========================================================================================================================== DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Class A (4,666,381) (3,493,168) (1,196,122) (5,909,705) (7,410,189) Class B - - - - - Class C - - - - - -------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS (4,666,381) (3,493,168) (1,196,122) (5,909,705) (7,410,189) ========================================================================================================================== CAPITAL SHARE TRANSACTIONS: Net proceeds from sales of shares 8,823,698 12,019,332 4,846,903 17,602,461 16,690,884 Reinvestment of distributions 2,147,736 1,827,196 956,958 4,539,731 4,254,272 Cost of shares reacquired (15,544,316) (7,695,736) (3,881,976) (11,653,711) (21,450,389) -------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (4,572,882) 6,150,792 1,921,885 10,488,481 (505,233) ========================================================================================================================== NET INCREASE (DECREASE) IN NET ASSETS (883,437) 8,966,370 2,859,814 14,883,345 4,562,352 ========================================================================================================================== NET ASSETS: Beginning of year 101,241,873 71,021,703 24,708,401 130,122,275 160,171,039 -------------------------------------------------------------------------------------------------------------------------- END OF YEAR $ 100,358,436 $ 79,988,073 $ 27,568,215 $ 145,005,620 $ 164,733,391 ========================================================================================================================== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ (96,049) $ (242,424) $ (40,680) $ (388,714) $ (401,641) ==========================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 103 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) Year Ended September 30, 2002
INCREASE IN NET ASSETS NEW YORK TEXAS OPERATIONS: Net investment income $ 11,836,535 $ 3,481,721 Net realized gain on investments 2,480,435 362,090 Net change in unrealized appreciation/depreciation on investments 8,324,389 3,392,827 ----------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 22,641,359 7,236,638 ============================================================================= DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Class A (11,318,011) (3,456,519) Class C (306,953) - ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS (11,624,964) (3,456,519) ============================================================================= CAPITAL SHARE TRANSACTIONS: Net proceeds from sales of shares 34,088,342 6,622,967 Reinvestment of distributions 6,992,893 2,413,147 Cost of shares reacquired (39,497,523) (9,308,122) ----------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 1,583,712 (272,008) ----------------------------------------------------------------------------- NET INCREASE IN NET ASSETS 12,600,107 3,508,111 ============================================================================= NET ASSETS: Beginning of year 249,029,242 77,860,428 ----------------------------------------------------------------------------- END OF YEAR $ 261,629,349 $ 81,368,539 ============================================================================= UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ (823,882) $ (285,235) =============================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 104
INCREASE IN NET ASSETS WASHINGTON FLORIDA GEORGIA MICHIGAN PENNSYLVANIA OPERATIONS: Net investment income $ 2,377,355 $ 4,125,652 $ 2,321,307 $ 2,475,098 $ 4,416,932 Net realized gain on investments 175,857 353,938 461,293 357,663 386,036 Net change in unrealized appreciation/depreciation on investments 1,398,877 2,398,830 2,505,000 2,088,011 3,159,831 -------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,952,089 6,878,420 5,287,600 4,920,772 7,962,799 ========================================================================================================================== DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Class A (2,369,030) (3,898,923) (2,298,082) (2,503,130) (4,405,152) Class C - (223,468) - - - -------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS (2,369,030) (4,122,391) (2,298,082) (2,503,130) (4,405,152) ========================================================================================================================== CAPITAL SHARE TRANSACTIONS: Net proceeds from sales of shares 4,893,708 6,485,650 28,219,929 10,510,102 9,381,743 Reinvestment of distributions 1,554,802 1,552,170 1,872,091 1,630,447 2,088,771 Cost of shares reacquired (4,866,363) (9,570,166) (9,480,146) (5,256,754) (8,076,736) -------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 1,582,147 (1,532,346) 20,611,874 6,883,795 3,393,778 -------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS 3,165,206 1,223,683 23,601,392 9,301,437 6,951,425 ========================================================================================================================== NET ASSETS: Beginning of year 45,883,420 89,028,199 46,235,039 49,330,264 94,550,490 -------------------------------------------------------------------------------------------------------------------------- END OF YEAR $ 49,048,626 $ 90,251,882 $ 69,836,431 $ 58,631,701 $ 101,501,915 ========================================================================================================================== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ 486,493 $ (49,177) $ (98,258) $ (171,755) $ (289,776) ==========================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 105 FINANCIAL HIGHLIGHTS NATIONAL TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE (CLASS A SHARES) NET ASSET VALUE, BEGINNING OF YEAR $ 11.73 $ 11.33 $ 10.76 $ 10.79 $ 11.98 ========== ========== ========== ========== ========== Investment operations Net investment income .50(a) .54(a) .53(a) .51(a) .59 Net realized and unrealized gain (loss) (.22) .40 .59 .01 (1.03) ---------- ---------- ---------- ---------- ---------- Total from investment operations .28 .94 1.12 .52 (.44) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from: Net investment income (.51) (.54) (.55) (.55) (.56) Net realized gain - - - - (.19) ---------- ---------- ---------- ---------- ---------- Total distributions (.51) (.54) (.55) (.55) (.75) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 11.50 $ 11.73 $ 11.33 $ 10.76 $ 10.79 ========== ========== ========== ========== ========== Total Return(b) 2.48% 8.57% 10.64% 5.02% (3.85)% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions .98% 1.03% 1.01% .98% .95% Expenses, excluding expense reductions .98% 1.04% 1.06% .99% .95% Net investment income 4.33% 4.74% 4.78% 4.85% 5.10% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 515,694 $ 530,563 $ 512,426 $ 487,188 $ 542,601 Portfolio turnover rate 209.07% 63.74% 77.46% 185.25% 254.13% ==============================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 106 FINANCIAL HIGHLIGHTS (CONTINUED) NATIONAL TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE (CLASS B SHARES) NET ASSET VALUE, BEGINNING OF YEAR $ 11.76 $ 11.36 $ 10.79 $ 10.82 $ 11.98 ========== ========== ========== ========== ========== Investment operations Net investment income .42(a) .47(a) .46(a) .44(a) .51 Net realized and unrealized gain (loss) (.21) .40 .60 .01 (.99) ---------- ---------- ---------- ---------- ---------- Total from investment operations .21 .87 1.06 .45 (.48) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from: Net investment income (.44) (.47) (.49) (.48) (.49) Net realized gain - - - - (.19) ---------- ---------- ---------- ---------- ---------- Total distributions (.44) (.47) (.49) (.48) (.68) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 11.53 $ 11.76 $ 11.36 $ 10.79 $ 10.82 ========== ========== ========== ========== ========== Total Return(b) 1.86% 7.88% 9.96% 4.32% (4.30)% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions 1.63% 1.65% 1.64% 1.63% 1.54% Expenses, excluding expense reductions 1.63% 1.66% 1.69% 1.63% 1.54% Net investment income 3.68% 4.12% 4.15% 4.15% 4.41% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 39,122 $ 36,250 $ 28,531 $ 17,594 $ 16,053 Portfolio turnover rate 209.07% 63.74% 77.46% 185.25% 254.13% ==============================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 107 FINANCIAL HIGHLIGHTS (CONTINUED) NATIONAL TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE (CLASS C SHARES) NET ASSET VALUE, BEGINNING OF YEAR $ 11.76 $ 11.35 $ 10.77 $ 10.81 $ 11.99 ========== ========== ========== ========== ========== Investment operations Net investment income .42(a) .47(a) .46(a) .45(a) .50 Net realized and unrealized gain (loss) (.22) .41 .60 (.01) (1.01) ---------- ---------- ---------- ---------- ---------- Total from investment operations .20 .88 1.06 .44 (.51) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from: Net investment income (.44) (.47) (.48) (.48) (.48) Net realized gain - - - - (.19) ---------- ---------- ---------- ---------- ---------- Total distributions (.44) (.47) (.48) (.48) (.67) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 11.52 $ 11.76 $ 11.35 $ 10.77 $ 10.81 ========== ========== ========== ========== ========== Total Return(b) 1.80% 7.95% 10.04% 4.23% (4.45)% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions 1.63% 1.61% 1.68% 1.63% 1.63% Expenses, excluding expense reductions 1.63% 1.62% 1.73% 1.64% 1.63% Net investment income 3.68% 4.16% 4.11% 4.19% 4.38% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 49,474 $ 44,727 $ 37,803 $ 34,999 $ 38,409 Portfolio turnover rate 209.07% 63.74% 77.46% 185.25% 254.13% ==============================================================================================================================
(a) Calculated using average shares outstanding during the year. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. SEE NOTES TO FINANCIAL STATEMENTS. 108 FINANCIAL HIGHLIGHTS CALIFORNIA TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE (CLASS A SHARES) NET ASSET VALUE, BEGINNING OF YEAR $ 11.19 $ 10.89 $ 10.29 $ 10.16 $ 11.12 ========== ========== ========== ========== ========== Investment operations Net investment income .46(a) .52(a) .51(a) .53(a) .54 Net realized and unrealized gain (loss) (.36) .29 .61 .12 (.98) ---------- ---------- ---------- ---------- ---------- Total from investment operations .10 .81 1.12 .65 (.44) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.49) (.51) (.52) (.52) (.52) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 10.80 $ 11.19 $ 10.89 $ 10.29 $ 10.16 ========== ========== ========== ========== ========== Total Return(b) .94% 7.65% 11.09% 6.62% (4.09)% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions .99% 1.03% 1.00% .94% .93% Expenses, excluding expense reductions .99% 1.04% 1.04% .94% .93% Net investment income 4.27% 4.82% 4.81% 5.30% 4.96% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 178,156 $ 192,181 $ 192,624 $ 186,041 $ 207,113 Portfolio turnover rate 86.47% 45.31% 72.84% 100.22% 185.43% ==============================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 109 FINANCIAL HIGHLIGHTS (CONTINUED) CALIFORNIA TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE (CLASS C SHARES) NET ASSET VALUE, BEGINNING OF YEAR $ 11.20 $ 10.91 $ 10.30 $ 10.16 $ 11.12 ========== ========== ========== ========== ========== Investment operations Net investment income .39(a) .46(a) .45(a) .47(a) .46 Net realized and unrealized gain (loss) (.37) .27 .61 .12 (.98) ---------- ---------- ---------- ---------- ---------- Total from investment operations .02 .73 1.06 .59 (.52) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.42) (.44) (.45) (.45) (.44) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 10.80 $ 11.20 $ 10.91 $ 10.30 $ 10.16 ========== ========== ========== ========== ========== Total Return(b) .26% 6.94% 10.53% 6.02% (4.77)% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions 1.63% 1.61% 1.55% 1.55% 1.60% Expenses, excluding expense reductions 1.63% 1.62% 1.59% 1.55% 1.60% Net investment income 3.63% 4.22% 4.26% 4.70% 4.28% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 16,183 $ 14,290 $ 11,591 $ 10,646 $ 12,767 Portfolio turnover rate 86.47% 45.31% 72.84% 100.22% 185.43% ==============================================================================================================================
(a) Calculated using average shares outstanding during the year. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. SEE NOTES TO FINANCIAL STATEMENTS. 110 FINANCIAL HIGHLIGHTS CONNECTICUT TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF YEAR $ 10.71 $ 10.32 $ 9.79 $ 9.89 $ 10.73 ========== ========== ========== ========== ========== Investment operations Net investment income .46(a) .50(a) .49(a) .49(a) .54 Net realized and unrealized gain (loss) (.16) .38 .53 (.08) (.86) ---------- ---------- ---------- ---------- ---------- Total from investment operations .30 .88 1.02 .41 (.32) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.46) (.49) (.49) (.51) (.52) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 10.55 $ 10.71 $ 10.32 $ 9.79 $ 9.89 ========== ========== ========== ========== ========== Total Return(b) 2.95% 8.79% 10.65% 4.32% (3.04)% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions 1.01% 1.03% 1.01% 1.02% .95% Expenses, excluding expense reductions 1.01% 1.04% 1.03% 1.02% .95% Net investment income 4.33% 4.82% 4.85% 5.10% 5.12% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 96,469 $ 100,358 $ 101,242 $ 96,901 $ 111,758 Portfolio turnover rate 41.50% 48.64% 21.52% 37.92% 53.76% ==============================================================================================================================
(a) Calculated using average shares outstanding during the year. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. SEE NOTES TO FINANCIAL STATEMENTS. 111 FINANCIAL HIGHLIGHTS HAWAII TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF YEAR $ 5.20 $ 5.01 $ 4.83 $ 4.84 $ 5.25 ========== ========== ========== ========== ========== Investment operations Net investment income .21(a) .23(a) .22(a) .24(a) .26 Net realized and unrealized gain (loss) (.12) .20 .20 (.01) (.43) ---------- ---------- ---------- ---------- ---------- Total from investment operations .09 .43 .42 .23 (.17) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.21) (.24) (.24) (.24) (.24) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 5.08 $ 5.20 $ 5.01 $ 4.83 $ 4.84 ========== ========== ========== ========== ========== Total Return(b) 1.86% 8.78% 8.88% 4.94% (3.31)% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions .99% 1.05% 1.04% .99% .97% Expenses, excluding expense reductions 1.00% 1.06% 1.07% .99% .97% Net investment income 4.20% 4.60% 4.49% 5.03% 5.03% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 75,117 $ 79,988 $ 71,022 $ 70,190 $ 71,619 Portfolio turnover rate 27.90% 30.99% 32.38% 30.06% 27.63% ==============================================================================================================================
(a) Calculated using average shares outstanding during the year. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. SEE NOTES TO FINANCIAL STATEMENTS. 112 FINANCIAL HIGHLIGHTS MINNESOTA TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF YEAR $ 5.18 $ 5.00 $ 4.76 $ 4.78 $ 5.18 ========== ========== ========== ========== ========== Investment operations Net investment income .21(a) .24(a) .25(a) .23(a) .27 Net realized and unrealized gain (loss) (.03) .18 .24 .01 (.41) ---------- ---------- ---------- ---------- ---------- Total from investment operations .18 .42 .49 .24 (.14) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.22) (.24) (.25) (.26) (.26) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 5.14 $ 5.18 $ 5.00 $ 4.76 $ 4.78 ========== ========== ========== ========== ========== Total Return(b) 3.57% 8.56% 10.57% 5.32% (2.72)% RATIOS TO AVERAGE NET ASSETS Expenses, including waivers and expense reductions .69% .46% .19% .24% .23% Expenses, excluding waivers and expense reductions .72% .75% .82% .74% .73% Net investment income 4.03% 4.79% 5.16% 5.00% 5.43% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 37,016 $ 27,568 $ 24,708 $ 20,864 $ 19,843 Portfolio turnover rate 35.15% 22.33% 24.34% 50.37% 22.87% ==============================================================================================================================
(a) Calculated using average shares outstanding during the year. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. SEE NOTES TO FINANCIAL STATEMENTS. 113 FINANCIAL HIGHLIGHTS MISSOURI TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF YEAR $ 5.41 $ 5.25 $ 4.96 $ 4.99 $ 5.36 ========== ========== ========== ========== ========== Investment operations Net investment income .22(a) .23(a) .25(a) .24(a) .25 Net realized and unrealized gain (loss) (.05) .16 .29 (.02) (.37) ---------- ---------- ---------- ---------- ---------- Total from investment operations .17 .39 .54 .22 (.12) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.22) (.23) (.25) (.25) (.25) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 5.36 $ 5.41 $ 5.25 $ 4.96 $ 4.99 ========== ========== ========== ========== ========== Total Return(b) 3.18% 7.67% 11.11% 4.63% (2.25)% RATIOS TO AVERAGE NET ASSETS Expenses, including waivers and expense reductions 1.00% 1.03% .89% 1.02% .99% Expenses, excluding waivers and expense reductions 1.01% 1.06% 1.08% 1.02% .99% Net investment income 4.19% 4.44% 4.80% 4.98% 4.84% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 153,488 $ 145,006 $ 130,122 $ 120,058 $ 125,775 Portfolio turnover rate 48.47% 80.04% 43.75% 43.30% 78.85% ==============================================================================================================================
(a) Calculated using average shares outstanding during the year. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. SEE NOTES TO FINANCIAL STATEMENTS. 114 FINANCIAL HIGHLIGHTS NEW JERSEY TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF YEAR $ 5.37 $ 5.21 $ 4.96 $ 4.97 $ 5.54 ========== ========== ========== ========== ========== Investment operations Net investment income .24(a) .25(a) .25(a) .25(a) .27 Net realized and unrealized gain (loss) (.17) .15 .26 -(c) (.47) ---------- ---------- ---------- ---------- ---------- Total from investment operations .07 .40 .51 .25 (.20) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from: Net investment income (.24) (.24) (.26) (.26) (.26) Net realized gain - - - - (.11) ---------- ---------- ---------- ---------- ---------- Total distributions (.24) (.24) (.26) (.26) (.37) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 5.20 $ 5.37 $ 5.21 $ 4.96 $ 4.97 ========== ========== ========== ========== ========== Total Return(b) 1.31% 7.96% 10.41% 5.31% (3.73)% RATIOS TO AVERAGE NET ASSETS Expenses, including waivers and expense reductions 1.00% 1.03% .90% .97% .93% Expenses, excluding waivers and expense reductions 1.00% 1.05% 1.06% .98% .93% Net investment income 4.49% 4.77% 4.93% 5.03% 5.11% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 153,797 $ 164,733 $ 160,171 $ 151,048 $ 163,237 Portfolio turnover rate 70.02% 97.76% 101.02% 125.73% 185.16% ==============================================================================================================================
(a) Calculated using average shares outstanding during the year. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. (c) Amount is less than $0.01. SEE NOTES TO FINANCIAL STATEMENTS. 115 FINANCIAL HIGHLIGHTS NEW YORK TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE (CLASS A SHARES) NET ASSET VALUE, BEGINNING OF YEAR $ 11.66 $ 11.16 $ 10.53 $ 10.51 $ 11.43 ========== ========== ========== ========== ========== Investment operations Net investment income .52(a) .54(a) .53(a) .55(a) .58 Net realized and unrealized gain (loss) (.24) .49 .64 .02 (.94) ---------- ---------- ---------- ---------- ---------- Total from investment operations .28 1.03 1.17 .57 (.36) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.52) (.53) (.54) (.55) (.56) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 11.42 $ 11.66 $ 11.16 $ 10.53 $ 10.51 ========== ========== ========== ========== ========== Total Return(b) 2.55% 9.50% 11.35% 5.65% (3.23)% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions .96% 1.03% 1.01% .96% .93% Expenses, excluding expense reductions .96% 1.04% 1.04% .97% .93% Net investment income 4.54% 4.80% 4.80% 5.28% 5.21% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 247,153 $ 252,831 $ 242,367 $ 228,362 $ 248,456 Portfolio turnover rate 47.94% 51.72% 70.03% 76.33% 52.67% ==============================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 116 FINANCIAL HIGHLIGHTS (CONTINUED) NEW YORK TAX-FREE FUND
YEAR ENDED 9/30 -------------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE (CLASS C SHARES) NET ASSET VALUE, BEGINNING OF YEAR $ 11.67 $ 11.17 $ 10.54 $ 10.51 $ 11.42 ========== ========== ========== ========== ========== Investment operations Net investment income .44(a) .48(a) .46(a) .49(a) .50 Net realized and unrealized gain (loss) (.23) .49 .65 .02 (.93) ---------- ---------- ---------- ---------- ---------- Total from investment operations .21 .97 1.11 .51 (.43) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.46) (.47) (.48) (.48) (.48) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 11.42 $ 11.67 $ 11.17 $ 10.54 $ 10.51 ========== ========== ========== ========== ========== Total Return(b) 1.88% 8.90% 10.74% 5.07% (3.93)% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions 1.63% 1.51% 1.62% 1.55% 1.62% Expenses, excluding expense reductions 1.63% 1.52% 1.65% 1.56% 1.62% Net investment income 3.87% 4.32% 4.19% 4.72% 4.49% YEAR ENDED 9/30 -------------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of year (000) $ 12,379 $ 8,798 $ 6,662 $ 5,278 $ 6,577 Portfolio turnover rate 47.94% 51.72% 70.03% 76.33% 52.67% ==============================================================================================================================
(a) Calculated using average shares outstanding during the year. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. SEE NOTES TO FINANCIAL STATEMENTS. 117 FINANCIAL HIGHLIGHTS TEXAS TAX-FREE FUND
YEAR ENDED 9/30 ---------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF YEAR $ 10.47 $ 9.99 $ 9.43 $ 9.55 $ 10.69 ========== ========== ========== ========== ========== Investment operations Net investment income .46(a) .45(a) .46(a) .51(a) .52 Net realized and unrealized gain (loss) (.13) .48 .57 (.13) (1.03) ---------- ---------- ---------- ---------- ---------- Total from investment operations .33 .93 1.03 .38 (.51) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from: Net investment income (.44) (.45) (.47) (.50) (.52) Net realized gain - - - - (.11) ---------- ---------- ---------- ---------- ---------- Total distributions (.44) (.45) (.47) (.50) (.63) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 10.36 $ 10.47 $ 9.99 $ 9.43 $ 9.55 ========== ========== ========== ========== ========== Total Return(b) 3.32% 9.55% 11.30% 4.14% (4.96)% RATIOS TO AVERAGE NET ASSETS Expenses, including waivers and expense reductions 1.02% 1.00% .64% .99% .94% Expenses, excluding waivers and expense reductions 1.02% 1.05% 1.09% 1.01% .94% Net investment income 4.44% 4.49% 4.70% 5.47% 5.12% YEAR ENDED 9/30 ---------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------- Net assets, end of year (000) $ 79,185 $ 81,369 $ 77,860 $ 74,405 $ 84,491 Portfolio turnover rate 58.09% 89.30% 108.27% 163.39% 168.04% =============================================================================================================================
(a) Calculated using average shares outstanding during the year. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. SEE NOTES TO FINANCIAL STATEMENTS. 118 FINANCIAL HIGHLIGHTS WASHINGTON TAX-FREE FUND
YEAR ENDED 9/30 ---------------------------------------------------------------------- 2003 2002 2001 2000 1999 PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF YEAR $ 5.32 $ 5.15 $ 4.89 $ 4.91 $ 5.38 ========== ========== ========== ========== ========== Investment operations Net investment income .24(a) .26(a) .26(a) .27(a) .28 Net realized and unrealized gain (loss) (.10) .17 .26 (.04) (.50) ---------- ---------- ---------- ---------- ---------- Total from investment operations .14 .43 .52 .23 (.22) ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.25) (.26) (.26) (.25) (.25) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 5.21 $ 5.32 $ 5.15 $ 4.89 $ 4.91 ========== ========== ========== ========== ========== Total Return(b) 2.75% 8.71% 10.92% 4.90% (4.17)% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions .68% .71% .70% .71% .66% Expenses, excluding expense reductions .68% .72% .73% .71% .66% Net investment income 4.68% 5.14% 5.22% 5.58% 5.42% YEAR ENDED 9/30 ---------------------------------------------------------------------- SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------- Net assets, end of year (000) $ 50,497 $ 49,049 $ 45,883 $ 44,512 $ 51,849 Portfolio turnover rate 58.05% 40.20% 52.09% 152.63% 180.42% =============================================================================================================================
(a) Calculated using average shares outstanding during the year. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. SEE NOTES TO FINANCIAL STATEMENTS. 119 FINANCIAL HIGHLIGHTS INSURED INTERMEDIATE TAX-FREE FUND
6/23/2003(a) TO 9/30/2003 PER SHARE OPERATING PERFORMANCE (CLASS A SHARES) NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 ============ Unrealized depreciation on investments (.01) ------------ NET ASSET VALUE ON SEC EFFECTIVE DATE $ 9.99 ============ Investment operations Net investment income(b) .06 Net realized and unrealized loss (.05) ------------ Total from investment operations .01 ------------ Distributions to shareholders from net investment income (.06) ------------ NET ASSET VALUE, END OF PERIOD $ 9.94 ============ Total Return(c) .16%(d)(e) RATIOS TO AVERAGE NET ASSETS Expenses, including waivers and expense reductions .07%(d)(+) Expenses, excluding waivers and expense reductions 2.47%(d)(+) Net investment income .66%(d)(+) 6/23/2003(a) TO SUPPLEMENTAL DATA: 9/30/2003 ------------------------------------------------------------------------- Net assets, end of period (000) $ 3,673 Portfolio turnover rate 107.99% =========================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 120 FINANCIAL HIGHLIGHTS (CONTINUED) INSURED INTERMEDIATE TAX-FREE FUND
6/23/2003(a) TO 9/30/2003 PER SHARE OPERATING PERFORMANCE (CLASS B SHARES) NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 ============ Unrealized depreciation on investments (.02) ------------ NET ASSET VALUE ON SEC EFFECTIVE DATE $ 9.98 ============ Investment operations Net investment income(b) .05 Net realized and unrealized loss (.05) ------------ Total from investment operations - ------------ Distributions to shareholders from net investment income (.05) ------------ NET ASSET VALUE, END OF PERIOD $ 9.93 ============ Total Return(c) .04%(d)(e) RATIOS TO AVERAGE NET ASSETS Expenses, including waivers and expense reductions .27%(d)(+) Expenses, excluding waivers and expense reductions 2.64%(d)(+) Net investment income .46%(d)(+) 6/23/2003(a) TO SUPPLEMENTAL DATA: 9/30/2003 ------------------------------------------------------------------------- Net assets, end of period (000) $ 312 Portfolio turnover rate 107.99% =========================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 121 FINANCIAL HIGHLIGHTS (CONTINUED) INSURED INTERMEDIATE TAX-FREE FUND
6/23/2003(a) TO 9/30/2003 PER SHARE OPERATING PERFORMANCE (CLASS C SHARES) NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 ============ Unrealized depreciation on investments (.02) ------------ NET ASSET VALUE ON SEC EFFECTIVE DATE $ 9.98 ============ Investment operations Net investment income(b) .05 Net realized and unrealized loss (.05) ------------ Total from investment operations - ------------ Distributions to shareholders from net investment income (.05) ------------ NET ASSET VALUE, END OF PERIOD $ 9.93 ============ Total Return(c) (.04)%(d)(e) RATIOS TO AVERAGE NET ASSETS Expenses, including waivers and expense reductions .27%(d)(+) Expenses, excluding waivers and expense reductions 2.64%(d)(+) Net investment income .46%(d)(+) 6/23/2003(a) TO SUPPLEMENTAL DATA: 9/30/2003 ------------------------------------------------------------------------- Net assets, end of period (000) $ 313 Portfolio turnover rate 107.99% =========================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 122 FINANCIAL HIGHLIGHTS (CONTINUED) INSURED INTERMEDIATE TAX-FREE FUND
6/23/2003(a) TO 9/30/2003 PER SHARE OPERATING PERFORMANCE (CLASS P SHARES) NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 Unrealized depreciation on investments (.01) ------------ NET ASSET VALUE ON SEC EFFECTIVE DATE $ 9.99 ============ Investment operations Net investment income(b) .06 Net realized and unrealized loss (.05) ------------ Total from investment operations .01 ------------ Distributions to shareholders from net investment income (.06) ------------ NET ASSET VALUE, END OF PERIOD $ 9.94 ============ Total Return(c) .11%(d)(e) RATIOS TO AVERAGE NET ASSETS Expenses, including waivers and expense reductions .12%(d)(+) Expenses, excluding waivers and expense reductions 2.49%(d)(+) Net investment income .61%(d)(+) 6/23/2003(a) TO SUPPLEMENTAL DATA: 9/30/2003 ------------------------------------------------------------------------- Net assets, end of period (000) $ 10 Portfolio turnover rate 107.99% =========================================================================
(+) The ratios have been determined on a Fund basis. (a) Commencement of investment operations; SEC effective date and date shares first became available to the public is June 30, 2003. (b) Calculated using average shares outstanding during the period. (c) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. (d) Not annualized. (e) Total return for the period June 30, 2003 (SEC effective date) to September 30, 2003. SEE NOTES TO FINANCIAL STATEMENTS. 123 FINANCIAL HIGHLIGHTS FLORIDA TAX-FREE TRUST
YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31 -------------------------------------- TO ------------------------ 2003 2002 2001 9/30/2000* 1999 1998 PER SHARE OPERATING PERFORMANCE (CLASS A SHARES) NET ASSET VALUE, BEGINNING OF PERIOD $ 4.97 $ 4.82 $ 4.57 $ 4.52 $ 4.98 $ 4.87 ========== ========== ========== ========== ========== ========== Investment operations Net investment income .21(a) .23(a) .23(a) .23(a) .23 .24 Net realized and unrealized gain (loss) (.09) .15 .25 .03 (.46) .11 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations .12 .38 .48 .26 (.23) .35 ---------- ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.21) (.23) (.23) (.21) (.23) (.24) ---------- ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 4.88 $ 4.97 $ 4.82 $ 4.57 $ 4.52 $ 4.98 ========== ========== ========== ========== ========== ========== Total Return(b) 2.62% 8.10% 10.68% 5.86%(c) (4.74)% 7.30% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions 1.04% 1.07% .99% .89%(c) .97% .89% Expenses, excluding expense reductions 1.04% 1.08% 1.05% .89%(c) .97% .89% Net investment income 4.33% 4.74% 4.77% 5.00%(c) 4.73% 4.79% YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31 -------------------------------------- TO ------------------------ SUPPLEMENTAL DATA: 2003 2002 2001 9/30/2000* 1999 1998 --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000) $ 78,278 $ 84,325 $ 83,798 $ 94,817 $ 100,924 $ 127,292 Portfolio turnover rate 86.95% 82.90% 84.37% 169.02% 191.12% 140.61% =================================================================================================================================
SEE NOTES TO FINANCIAL STATEMENTS. 124 FINANCIAL HIGHLIGHTS (CONTINUED) FLORIDA TAX-FREE TRUST
YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31 -------------------------------------- TO ------------------------ 2003 2002 2001 9/30/2000* 1999 1998 PER SHARE OPERATING PERFORMANCE (CLASS C SHARES) NET ASSET VALUE, BEGINNING OF PERIOD $ 4.98 $ 4.83 $ 4.58 $ 4.52 $ 4.98 $ 4.87 ========== ========== ========== ========== ========== ========== Investment operations Net investment income .18(a) .20(a) .20(a) .20(a) .20 .20 Net realized and unrealized gain (loss) (.09) .14 .25 .04 (.46) .11 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations .09 .34 .45 .24 (.26) .31 ---------- ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.18) (.19) (.20) (.18) (.20) (.20) ---------- ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 4.89 $ 4.98 $ 4.83 $ 4.58 $ 4.52 $ 4.98 ========== ========== ========== ========== ========== ========== Total Return(b) 1.97% 7.32% 9.99% 5.44%(c) (5.43)% 6.52% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions 1.71% 1.73% 1.64% 1.42%(c) 1.62% 1.58% Expenses, excluding expense reductions 1.71% 1.74% 1.70% 1.43%(c) 1.62% 1.58% Net investment income 3.66% 4.08% 4.13% 4.52%(c) 4.07% 4.09% YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31 -------------------------------------- TO ------------------------ SUPPLEMENTAL DATA: 2003 2002 2001 9/30/2000* 1999 1998 --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000) $ 6,514 $ 5,927 $ 5,230 $ 4,706 $ 6,046 $ 7,275 Portfolio turnover rate 86.95% 82.90% 84.37% 169.02% 191.12% 140.61% =================================================================================================================================
(a) Calculated using average shares outstanding during the period. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. (c) Not annualized. *The Trust changed its fiscal year-end. SEE NOTES TO FINANCIAL STATEMENTS. 125 FINANCIAL HIGHLIGHTS GEORGIA TAX-FREE TRUST
YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31 -------------------------------------- TO ------------------------ 2003 2002 2001 9/30/2000* 1999 1998 PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF PERIOD $ 5.70 $ 5.44 $ 5.07 $ 4.91 $ 5.43 $ 5.31 ========== ========== ========== ========== ========== ========== Investment operations Net investment income .24(a) .23(a) .26(a) .21(a) .28 .27 Net realized and unrealized gain (loss) (.06) .26 .37 .19 (.50) .19 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations .18 .49 .63 .40 (.22) .46 ---------- ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from: Net investment income (.23) (.23) (.26) (.24) (.26) (.27) Net realized gain (.02) - - - (.04) (.07) ---------- ---------- ---------- ---------- ---------- ---------- Total distributions (.25) (.23) (.26) (.24) (.30) (.34) ---------- ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 5.63 $ 5.70 $ 5.44 $ 5.07 $ 4.91 $ 5.43 ========== ========== ========== ========== ========== ========== Total Return(b) 3.21% 9.27% 12.69% 8.59%(c) 4.36% 9.00% RATIOS TO AVERAGE NET ASSETS Expenses, including waivers and expense reductions .68% .69% .31% .17%(c) .18% .24% Expenses, excluding waivers and expense reductions .69% .72% .78% .63%(c) .68% .74% Net investment income 4.26% 4.24% 4.81% 4.30%(c) 5.32% 5.07% YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31 -------------------------------------- TO ------------------------ SUPPLEMENTAL DATA: 2003 2002 2001 9/30/2000* 1999 1998 --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000) $ 85,441 $ 69,836 $ 46,235 $ 29,245 $ 27,432 $ 19,764 Portfolio turnover rate 34.13% 48.66% 43.50% 122.44% 115.87% 126.52% =================================================================================================================================
(a) Calculated using average shares outstanding during the period. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. (c) Not annualized. *The Trust changed its fiscal year-end. SEE NOTES TO FINANCIAL STATEMENTS. 126 FINANCIAL HIGHLIGHTS MICHIGAN TAX-FREE TRUST
YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31 -------------------------------------- TO ------------------------ 2003 2002 2001 9/30/2000* 1999 1998 PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF PERIOD $ 5.43 $ 5.20 $ 4.87 $ 4.75 $ 5.18 $ 5.06 ========== ========== ========== ========== ========== ========== Investment operations Net investment income .23(a) .25(a) .25(a) .21(a) .26 .26 Net realized and unrealized gain (loss) (.07) .23 .33 .14 (.44) .12 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations .16 .48 .58 .35 (.18) .38 ---------- ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.23) (.25) (.25) (.23) (.25) (.26) ---------- ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 5.36 $ 5.43 $ 5.20 $ 4.87 $ 4.75 $ 5.18 ========== ========== ========== ========== ========== ========== Total Return(b) 3.16% 9.57% 12.21% 7.57%(c) (3.55)% 7.59% RATIOS TO AVERAGE NET ASSETS Expenses, including expense reductions .71% .73% .69% .67%(c) .69% .69% Expenses, excluding expense reductions .73% .75% .74% .67%(c) .69% .69% Net investment income 4.28% 4.77% 4.91% 4.37%(c) 5.21% 4.98% YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31 -------------------------------------- TO ------------------------ SUPPLEMENTAL DATA: 2003 2002 2001 9/30/2000* 1999 1998 --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000) $ 68,290 $ 58,632 $ 49,330 $ 45,666 $ 49,356 $ 53,139 Portfolio turnover rate 59.46% 48.09% 100.27% 111.48% 186.97% 82.33% =================================================================================================================================
(a) Calculated using average shares outstanding during the period. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. (c) Not annualized. *The Trust changed its fiscal year-end. SEE NOTES TO FINANCIAL STATEMENTS. 127 FINANCIAL HIGHLIGHTS PENNSYLVANIA TAX-FREE TRUST
YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31 -------------------------------------- TO ------------------------ 2003 2002 2001 9/30/2000* 1999 1998 PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF PERIOD $ 5.37 $ 5.18 $ 4.90 $ 4.81 $ 5.28 $ 5.14 ========== ========== ========== ========== ========== ========== Investment operations Net investment income .23(a) .24(a) .25(a) .22(a) .26 .27 Net realized and unrealized gain (loss) (.10) .19 .28 .10 (.47) .14 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations .13 .43 .53 .32 (.21) .41 ---------- ---------- ---------- ---------- ---------- ---------- Distributions to shareholders from net investment income (.23) (.24) (.25) (.23) (.26) (.27) ---------- ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 5.27 $ 5.37 $ 5.18 $ 4.90 $ 4.81 $ 5.28 ========== ========== ========== ========== ========== ========== Total Return(b) 2.52% 8.57% 11.06% 6.83%(c) (4.13)% 8.12% RATIOS TO AVERAGE NET ASSETS Expenses, including waivers and expense reductions .94% 1.08% .90% .88%(c) .96% .72% Expenses, excluding waivers and expense reductions .95% 1.10% 1.06% .88%(c) .96% .72% Net investment income 4.37% 4.66% 4.88% 4.54%(c) 5.02% 5.05% YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31 -------------------------------------- TO ------------------------ SUPPLEMENTAL DATA: 2003 2002 2001 9/30/2000* 1999 1998 --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000) $ 99,280 $ 101,502 $ 94,550 $ 91,750 $ 93,835 $ 102,907 Portfolio turnover rate 29.76% 60.87% 65.63% 61.00% 40.76% 65.20% =================================================================================================================================
(a) Calculated using average shares outstanding during the period. (b) Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. (c) Not annualized. *The Trust changed its fiscal year-end. SEE NOTES TO FINANCIAL STATEMENTS. 128 NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION Lord Abbett Tax-Free Income Fund, Inc. (the "Company") and Lord Abbett Tax-Free Income Trust (the "Trust") are registered under the Investment Company Act of 1940 (the "Act") as open-end management investment companies. The Company was organized as a Maryland corporation on December 27, 1983. The Trust was organized as a Massachusetts Business Trust on September 11, 1991 and was reorganized as a Delaware Business Trust on July 22, 2002. The Company consists of the following ten portfolios and their respective classes (separately, a "Fund" and collectively, the "Funds"): Lord Abbett National Tax-Free Income Fund ("National"), Class A, B, C and P shares; Lord Abbett California Tax-Free Income Fund ("California") and Lord Abbett New York Tax-Free Income Fund ("New York"), Class A, C and P shares; Lord Abbett Connecticut Tax-Free Income Fund ("Connecticut"), Lord Abbett Hawaii Tax-Free Income Fund ("Hawaii"), Lord Abbett Minnesota Tax-Free Income Fund ("Minnesota"), Lord Abbett Missouri Tax-Free Income Fund ("Missouri"), Lord Abbett New Jersey Tax-Free Income Fund ("New Jersey"), Lord Abbett Texas Tax-Free Income Fund ("Texas") and Lord Abbett Washington Tax-Free Income Fund ("Washington"), Class A and P shares. The Trust consists of the following five portfolios and their respective classes (separately, a "Fund" and collectively, the "Funds"): Florida Series ("Florida"), Class A, C and P shares; Georgia Series ("Georgia"), Michigan Series ("Michigan"), Pennsylvania Series ("Pennsylvania"), Class A and P shares, and Lord Abbett Insured Intermediate Tax-Free Fund ("Insured"), Class A, B, C and P. Insured commenced investment operations and was capitalized with a $2,230,000 investment from Lord, Abbett & Co. LLC ("Lord Abbett") on June 23, 2003. Shares first became available to the public on June 30, 2003. Each Fund is non-diversified as defined under the Act, except for National and Insured. As of the date of this report, only Insured has issued class P shares. The investment objective of each Fund is to seek the maximum amount of interest income exempt from federal income tax as is consistent with reasonable risk. Each Fund (except for National and Insured) also seeks as high a level of interest income exempt from the personal income tax of its state as is consistent with reasonable risk. New York also seeks as high a level of interest income exempt from New York City personal income tax as is consistent with reasonable risk. Each class has different expenses and dividends. A front-end sales charge is normally added to the NAV for Class A shares. There is no front-end sales charge in the case of the Class B, C and P shares, although there may be a contingent deferred sales charge ("CDSC") as follows: certain redemptions of Class A shares made within 24 months following any purchases made without a sales charge; Class B shares redeemed before the sixth anniversary of purchase; and Class C shares redeemed before the first anniversary of purchase. Class B shares will convert to Class A shares on the eighth anniversary of the original purchase of Class B shares. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 2. SIGNIFICANT ACCOUNTING POLICIES (a) INVESTMENT VALUATION-Securities are valued at prices supplied by independent pricing services approved by the Directors/Trustees. Such prices reflect broker/dealer supplied 129 NOTES TO FINANCIAL STATEMENTS (CONTINUED) valuations and electronic data processing techniques. Prices reflect the mean of the bid and asked prices. Securities for which market quotations are not readily available are valued at fair value, as determined by management and approved in good faith by the Board of Directors/Trustees. Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates current market value. (b) SECURITY TRANSACTIONS-Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses from sales of portfolio securities are calculated using the identified-cost method. Realized and unrealized gains or losses are allocated to each class of shares, based upon the relative proportion of net assets at the beginning of the day. (c) INVESTMENT INCOME-Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Discounts are accreted and premiums are amortized using the effective interest method. Investment income is allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. (d) FEDERAL TAXES-It is the policy of each Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no federal income tax provision is required. (e) EXPENSES-Expenses incurred by the Company and Trust that do not specifically relate to an individual Fund are allocated to the Funds on a pro-rata basis. Expenses, excluding class specific expenses, are allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. Class A, Class B, Class C and Class P shares bear all expenses and fees relating to their respective 12b-1 Distribution Plans. (f) OFFERING COSTS-Lord Abbett incurred initial offering costs on behalf of Insured which will be reimbursed by the Fund in the full amount thereof. Such expenses were deferred and are being amortized on the straight-line method over a period of one year from the commencement of operations. (g) WHEN-ISSUED MUNICIPAL BONDS-Each Fund may purchase new issues of municipal bonds, which are generally offered on a when-issued basis, with delivery and payment normally taking place approximately one month after the purchase date. 3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES The Company and Trust each have a management agreement with Lord Abbett, pursuant to which Lord Abbett supplies each Fund with investment management services and executive and other personnel, pays the remuneration of officers, provides office space and pays for ordinary and necessary office and clerical expenses relating to research and statistical work and supervision of each Fund's investment portfolio. The management fee is based on each Fund's average daily net assets for each month at an annual rate of .50% for all Funds, excluding Insured. The management fee for Insured is based on average daily net assets at the following annual rates: ----------------------------------- First $2 Billion .45% Next $3 Billion .425% Over $5 Billion .40% 130 NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the period June 23, 2003 (commencement of investment operations) to September 30, 2003, Lord Abbett waived its management fee and reimbursed all other expenses (excluding 12b-1 fees) for Insured. In addition, effective January 1, 2003, Lord Abbett began providing certain administrative services to each Fund pursuant to an Administrative Services Agreement at an annual rate of .04% of each Fund's average daily net assets. This results in Lord Abbett paying fund accounting expenses that were previously charged to the Funds. 12b-1 DISTRIBUTION PLAN Each Fund has adopted a distribution plan (the "Plan") with respect to one or more classes of shares pursuant to Rule 12b-1 of the Act, which provides for the payment of ongoing distribution and service fees to Lord Abbett Distributor LLC ("Distributor"), an affiliate of Lord Abbett. The fees are accrued daily at annual rates based upon average daily net assets as follows:
FEE CLASS A(1) CLASS B CLASS C CLASS P ----------------------------------------------------------------------------------- Service .25%(2) .25% .25% .25% Distribution .10%(3)(4)(5) .75% .75% .20%
(1) The Class A Plans of Minnesota, Washington, Georgia and Michigan will not go into effect until the quarter subsequent to the net assets of each of these Funds reaching $100 million. As of September 30, 2003, the net assets of each such Fund have not reached $100 million. (2) Annual service fee is .15% of the average daily net assets attributable to Class A shares sold prior to the following dates:
DATE ------------------------------------------------------------------------- National, New York, Texas June 1, 1990 Hawaii January 1, 1993 New Jersey July 1, 1992 Florida October 1, 1992 Pennsylvania March 31, 1998
(3) In addition, until January 1, 2003, the Company and Trust paid an incremental marketing expense of approximately .03% of average daily net assets attributable to Class A. (4) In addition, the Company and Trust pay a one-time distribution fee of up to 1% on certain qualifying purchases, which is generally amortized over a two-year period. (5) For the period June 23, 2003 (commencement of investment operations) to September 30, 2003, Lord Abbett waived its distribution fee for Insured. 131 NOTES TO FINANCIAL STATEMENTS (CONTINUED) COMMISSIONS Distributor received the following commissions on sales of Class A shares of the Funds after concessions were paid to authorized dealers for the year ended September 30, 2003:
DISTRIBUTOR DEALERS' COMMISSIONS CONCESSIONS -------------------------------------------------------------------------------- National $ 117,973 $ 551,461 California 35,559 162,008 Connecticut 29,369 140,879 Hawaii 16,752 76,666 Minnesota 42,791 213,233 Missouri 81,368 387,118 New Jersey 31,291 145,271 New York 39,177 187,694 Texas 11,727 61,828 Washington 28,488 133,883 Insured* 593 3,000 Florida 22,344 105,445 Georgia 112,811 531,744 Michigan 66,846 347,792 Pennsylvania 36,890 169,544
*For the period June 23, 2003 (commencement of investment operations) to September 30, 2003. One Director/Trustee and certain of the Company's and Trust's officers have an interest in Lord Abbett. 4. DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS Dividends from net investment income, if any, are declared daily and paid monthly. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations which may differ from accounting principles generally accepted in the United States of America. These book/tax differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions which exceed net investment income and net realized capital gains for tax purposes are reported as distributions of paid-in capital. 132 NOTES TO FINANCIAL STATEMENTS (CONTINUED) The tax character of the distributions paid during the years ended September 30, 2003 and September 30, 2002 are as follows:
NATIONAL CALIFORNIA -------------------------------------------------------------------------------------------------------- 9/30/2003 9/30/2002 9/30/2003 9/30/2002 -------------------------------------------------------------------------------------------------------- Distributions paid from: Tax exempt income $ 26,381,144 $ 27,296,117 $ 8,871,342 $ 9,230,492 Ordinary income - - - - Net long term capital gains - - - - -------------------------------------------------------------------------------------------------------- Total distributions paid $ 26,381,144 $ 27,296,117 $ 8,871,342 $ 9,230,492 ======================================================================================================== CONNECTICUT HAWAII -------------------------------------------------------------------------------------------------------- 9/30/2003 9/30/2002 9/30/2003 9/30/2002 -------------------------------------------------------------------------------------------------------- Distributions paid from: Tax exempt income $ 4,356,708 $ 4,666,381 $ 3,177,488 $ 3,493,168 Ordinary income - - - - Net long term capital gains - - - - -------------------------------------------------------------------------------------------------------- Total distributions paid $ 4,356,708 $ 4,666,381 $ 3,177,488 $ 3,493,168 ======================================================================================================== MINNESOTA MISSOURI -------------------------------------------------------------------------------------------------------- 9/30/2003 9/30/2002 9/30/2003 9/30/2002 -------------------------------------------------------------------------------------------------------- Distributions paid from: Tax exempt income $ 1,329,120 $ 1,196,122 $ 6,009,033 $ 5,909,705 Ordinary income - - - - Net long term capital gains - - - - -------------------------------------------------------------------------------------------------------- Total distributions paid $ 1,329,120 $ 1,196,122 $ 6,009,033 $ 5,909,705 ======================================================================================================== NEW JERSEY NEW YORK -------------------------------------------------------------------------------------------------------- 9/30/2003 9/30/2002 9/30/2003 9/30/2002 -------------------------------------------------------------------------------------------------------- Distributions paid from: Tax exempt income $ 7,202,044 $ 7,410,189 $ 11,705,846 $ 11,624,964 Ordinary income - - - - Net long term capital gains - - - - -------------------------------------------------------------------------------------------------------- Total distributions paid $ 7,202,044 $ 7,410,189 $ 11,705,846 $ 11,624,964 ======================================================================================================== TEXAS WASHINGTON -------------------------------------------------------------------------------------------------------- 9/30/2003 9/30/2002 9/30/2003 9/30/2002 -------------------------------------------------------------------------------------------------------- Distributions paid from: Tax exempt income $ 3,451,579 $ 3,456,519 $ 2,382,580 $ 2,369,030 Ordinary income - - - - Net long term capital gains - - - - -------------------------------------------------------------------------------------------------------- Total distributions paid $ 3,451,579 $ 3,456,519 $ 2,382,580 $ 2,369,030 ========================================================================================================
133 NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FLORIDA GEORGIA -------------------------------------------------------------------------------------------------------- 9/30/2003 9/30/2002 9/30/2003 9/30/2002 -------------------------------------------------------------------------------------------------------- Distributions paid from: Tax exempt income $ 3,821,091 $ 4,122,391 $ 3,203,266 $ 2,298,082 Ordinary income - - - - Net long term capital gains - - 214,585 - -------------------------------------------------------------------------------------------------------- Total distributions paid $ 3,821,091 $ 4,122,391 $ 3,417,851 $ 2,298,082 ======================================================================================================== MICHIGAN PENNSYLVANIA -------------------------------------------------------------------------------------------------------- 9/30/2003 9/30/2002 9/30/2003 9/30/2002 -------------------------------------------------------------------------------------------------------- Distributions paid from: Tax exempt income $ 2,853,218 $ 2,503,130 $ 4,360,779 $ 4,405,152 Ordinary income - - - - Net long term capital gains - - - - -------------------------------------------------------------------------------------------------------- Total distributions paid $ 2,853,218 $ 2,503,130 $ 4,360,779 $ 4,405,152 ======================================================================================================== INSURED ------------------------------------------------------------------------ 9/30/2003* ------------------------------------------------------------------------ Distributions paid from: Tax exempt income $ 19,301 Ordinary income - Net long term capital gains - ------------------------------------------------------------------------ Total distributions paid $ 19,301 ========================================================================
* For the period June 23, 2003 (commencement of investment operations) to September 30, 2003. As of September 30, 2003, the components of accumulated earnings (losses) on a tax basis are as follows:
NATIONAL CALIFORNIA -------------------------------------------------------------------------------------------------------- Capital loss carryforwards* $ (12,040,281) $ (3,317,755) Temporary differences (5,972,726) (1,431,942) Unrealized gains - net 32,308,728 8,719,211 -------------------------------------------------------------------------------------------------------- Total accumulated earnings - net $ 14,295,721 $ 3,969,514 ======================================================================================================== CONNECTICUT HAWAII -------------------------------------------------------------------------------------------------------- Capital loss carryforwards* $ (1,464,195) $ (1,986,981) Temporary differences (749,796) (1,931,874) Unrealized gains - net 5,282,615 5,151,611 -------------------------------------------------------------------------------------------------------- Total accumulated earnings - net $ 3,068,624 $ 1,232,756 ======================================================================================================== MINNESOTA MISSOURI -------------------------------------------------------------------------------------------------------- Capital loss carryforwards* $ (560,978) $ (753,091) Temporary differences (249,944) (309,257) Unrealized gains - net 1,580,239 7,858,945 -------------------------------------------------------------------------------------------------------- Total accumulated earnings - net $ 769,317 $ 6,796,597 ======================================================================================================== NEW JERSEY NEW YORK -------------------------------------------------------------------------------------------------------- Capital loss carryforwards* $ (3,872,596) $ (3,869,006) Temporary differences (2,396,696) (1,000,817) Unrealized gains - net 9,434,681 17,672,345 -------------------------------------------------------------------------------------------------------- Total accumulated earnings - net $ 3,165,389 $ 12,802,522 ========================================================================================================
134 NOTES TO FINANCIAL STATEMENTS (CONTINUED)
TEXAS WASHINGTON -------------------------------------------------------------------------------------------------------- Undistributed tax exempt income - net $ - $ 402,610 -------------------------------------------------------------------------------------------------------- Total undistributed earnings $ - $ 402,610 ======================================================================================================== Capital loss carryforwards* (3,318,831) (1,996,112) Temporary differences (762,834) (510,138) Unrealized gains - net 7,867,466 3,464,672 -------------------------------------------------------------------------------------------------------- Total accumulated earnings - net $ 3,785,801 $ 1,361,032 ======================================================================================================== INSURED FLORIDA -------------------------------------------------------------------------------------------------------- Undistributed tax exempt income - net $ 1,658 $ - -------------------------------------------------------------------------------------------------------- Total undistributed earnings $ 1,658 $ - ======================================================================================================== Capital loss carryforwards* - (7,197,061) Temporary differences (74,668) (546,445) Unrealized gains - net 85,959 7,430,657 -------------------------------------------------------------------------------------------------------- Total accumulated earnings - net $ 12,949 $ (312,849) ======================================================================================================== GEORGIA MICHIGAN -------------------------------------------------------------------------------------------------------- Undistributed tax exempt income - net $ 42,975 $ - -------------------------------------------------------------------------------------------------------- Total undistributed earnings $ 42,975 $ - -------------------------------------------------------------------------------------------------------- Capital loss carryforwards* (92,644) (1,710,242) Temporary differences (60,719) (424,556) Unrealized gains - net 3,883,756 5,033,070 -------------------------------------------------------------------------------------------------------- Total accumulated earnings - net $ 3,773,368 $ 2,898,272 ======================================================================================================== PENNSYLVANIA ------------------------------------------------------------------------ Capital loss carryforwards* $ (764,273) Temporary differences (641,935) Unrealized gains - net 6,133,701 ------------------------------------------------------------------------ Total accumulated earnings - net $ 4,727,493 ========================================================================
* At September 30, 2003, the capital loss carryforwards along with the related expiration dates are as follows:
2004 2005 2006 2007 --------------------------------------------------------------------------------- National $ - $ - $ - $ - California - - - - Connecticut 268,469 - - - Hawaii 1,096,898 - - 37,384 Minnesota - - - - Missouri 484,385 31,063 - - New Jersey - - - - New York 1,668,796 - - - Texas - - - - Washington 295,103 - - - Florida 1,035,870 - - 3,917,644 Georgia - - - - Michigan - - - 998,605 Pennsylvania - - - - 2008 2009 2010 2011 TOTAL ------------------------------------------------------------------------------------------------ National $ 11,399,772 $ 385,136 $ - $ 255,373 $ 12,040,281 California 3,282,765 - - 34,990 3,317,755 Connecticut 677,619 518,107 - - 1,464,195 Hawaii 584,699 268,000 1,986,981 Minnesota - 560,978 - - 560,978 Missouri 151,236 86,407 - - 753,091 New Jersey 3,467,129 - - 405,467 3,872,596 New York 983,645 1,190,572 - 25,993 3,869,006 Texas 2,739,564 579,267 - - 3,318,831 Washington 947,474 710,842 - 42,693 1,996,112 Florida 1,479,660 - - 763,887 7,197,061 Georgia - - - 92,644 92,644 Michigan 711,637 - - - 1,710,242 Pennsylvania 762,318 - - 1,955 764,273
135 NOTES TO FINANCIAL STATEMENTS (CONTINUED) Capital losses incurred after October 31 ("post-October losses), within the taxable year are deemed to arise on the first business day of the Fund's next taxable year. Each Fund incurred and will elect to defer net capital losses during fiscal 2003 as follows:
POST-OCTOBER LOSSES --------------------------------------- National $ 3,714,264 California 1,151,283 Connecticut 579,824 Hawaii 1,679,388 Minnesota 135,034 Missouri 70,139 New Jersey 1,814,786 New York 80,579 Texas 568,881 Washington 493,984 Insured 74,668 Florida 378,707 Georgia 58,985 Michigan 196,526 Pennsylvania 297,993
As of September 30, 2003, the aggregate security unrealized gains and losses based on cost for U.S. Federal income tax purposes are as follows:
GROSS GROSS NET UNREALIZED UNREALIZED UNREALIZED TAX COST GAIN LOSS GAIN ------------------------------------------------------------------------------------- National $ 573,773,743 $ 32,883,556 $ (574,828) $ 32,308,728 California 183,654,150 8,961,788 (242,577) 8,719,211 Connecticut 91,126,113 5,328,983 (46,368) 5,282,615 Hawaii 68,141,741 5,182,955 (31,344) 5,151,611 Minnesota 32,583,875 1,635,910 (55,671) 1,580,239 Missouri 142,797,186 7,882,430 (23,485) 7,858,945 New Jersey 143,623,295 9,464,835 (30,154) 9,434,681 New York 240,066,200 18,085,583 (413,238) 17,672,345 Texas 70,373,556 7,867,466 - 7,867,466 Washington 45,652,838 3,480,242 (15,570) 3,464,672 Insured 3,920,969 85,959 - 85,959 Florida 81,652,553 7,455,885 (25,228) 7,430,657 Georgia 79,694,919 4,033,771 (150,015) 3,883,756 Michigan 61,724,411 5,056,222 (23,152) 5,033,070 Pennsylvania 91,067,556 6,246,063 (112,362) 6,133,701
The difference between book-basis and tax-basis unrealized gains (losses) is primarily attribtable to wash sales, and other temporary tax adjustments. 136 NOTES TO FINANCIAL STATEMENTS (CONTINUED) Permanent items identified during the year ended September 30, 2003 have been reclassified among the components of net assets based on their tax basis treatment as follows:
UNDISTRIBUTED/ (DISTRIBUTIONS IN EXCESS OF ACCUMULATED NET INVESTMENT NET REALIZED INCOME) LOSS PAID-IN CAPITAL --------------------------------------------------------------------------------- National $ 709,004 $ - $ (709,004) California - 5,761,785 (5,761,785) Hawaii (31,448) - 31,448 Minnesota (5,372) - 5,372 New Jersey 1,980 - (1,980) New York 49,783 5,779,167 (5,828,950) Washington (44,217) - 44,217 Insured* 2,394 - (2,394) Florida (43,243) 2,642,077 (2,598,834) Georgia 3,457 (86) (3,371) Michigan 10,839 - (10,839) Pennsylvania (58,637) - 58,637
*For the period June 23, 2003 (commencement of investment operations) to September 30, 2003. 5. PORTFOLIO SECURITIES TRANSACTIONS Purchases and sales of investment securities (other than short-term investments) are as follows:
YEAR ENDED SEPTEMBER 30, 2003 ------------------------------------------------------------- PURCHASES SALES ------------------------------------------------------------- National $ 1,250,874,003 $ 1,250,273,149 California 169,618,403 176,814,243 Connecticut 40,146,420 45,677,367 Hawaii 20,471,257 22,511,573 Minnesota 18,776,830 10,287,695 Missouri 77,574,928 70,023,210 New Jersey 108,969,843 112,633,737 New York 123,630,530 120,507,755 Texas 44,858,040 46,421,237 Washington 30,279,143 27,595,874 Insured* 6,943,419 3,129,747 Florida 73,303,827 73,144,225 Georgia 40,027,374 26,068,063 Michigan 47,205,923 36,699,492 Pennsylvania 29,142,369 31,588,306
* For the period June 23, 2003 (commencement of investment operations) to September 30, 2003. There were no purchases or sales of U.S. Government securities for the year ended September 30, 2003. 137 NOTES TO FINANCIAL STATEMENTS (CONTINUED) 6. DIRECTORS'/TRUSTEES' REMUNERATION The Company's and Trust's officers and the one Director/Trustee who are associated with Lord Abbett do not receive any compensation from the Company or Trust for serving in such capacities. Outside Directors'/Trustees' fees are allocated among all Lord Abbett-sponsored funds based on the net assets of each fund. There is an equity based plan available to all outside Directors/Trustees under which outside Directors/Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of Directors'/Trustees' fees. The deferred amounts are treated as though equivalent dollar amounts have been invested proportionately in the Company or Trust. Such amounts and earnings accrued thereon are included in Directors'/Trustees' fees on the Statements of Operations and in Directors'/Trustees' fees payable on the Statements of Assets and Liabilities and are not deductible for federal income tax purposes until such amounts are paid. 7. EXPENSE REDUCTIONS The Funds have entered into agreements with their transfer agent and/or custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds' expenses. 8. CUSTODIAN AND ACCOUNTING AGENT State Street Bank and Trust Company ("SSB") is the Funds' custodian and accounting agent. SSB performs custodian, accounting and record keeping functions relating to portfolio transactions and calculating each Fund's net asset value. 9. INVESTMENT RISKS Each Fund's performance and the value of its investments will vary in response to changes in interest rates and other market factors. As interest rates rise, a Fund's investments typically will lose value. This risk is usually greater for long-term bonds than for short-term bonds. As a result, the Funds, which tend to invest in longer-term bonds than many other municipal bond funds, normally will have more price volatility than those other funds. Additional risks that could reduce each Fund's performance or increase volatility include call risk, governmental risk, legislative risk, management risk and credit risk. Credit risk varies among states based upon the economic and fiscal conditions of each state and the municipalities within the state. Each Fund (except National and Insured) is non-diversified which means that it may invest a greater portion of its assets in a single issuer than a diversified fund. Thus, it may be exposed to greater risk. Because each Fund other than National and Insured invests primarily in issuers of its particular state, its performance may be more affected by local, state and regional factors than a fund investing in municipal bonds issued in many states, such as National and Insured. These factors may include economic, political or state legislative developments, erosion of the tax base and the possibility of credit problems. In addition, downturns or developments in the U.S. economy or in foreign economies may harm the performance of each Fund, and may do so disproportionately as a result of the corresponding disproportionate impact of such occurrences on particular state, territory, or local economies. 138 NOTES TO FINANCIAL STATEMENTS (CONTINUED) Each Fund may invest up to 20% of its net assets in residual interest bonds ("RIBs"). RIBs, sometimes referred to as inverse floaters, are debt instruments with a floating or variable interest rate that moves in the opposite direction of the interest rate on another security or the value of an index. Changes in the interest rate on the other security or index inversely affect the residual interest paid on the RIB, with the result that when interest rates rise, RIBs make lower interest payments and their values fall faster than fixed-rate bonds. But when interest rates fall, not only do RIBs make higher interest payments, their values also rise faster than fixed-rate bonds. Each Fund may purchase securities on a forward commitment or when-issued basis. Delivery and payment for such securities can take place a month or more after the transaction date. During this period such securities are subject to market fluctuations. 10. SUMMARY OF CAPITAL TRANSACTIONS The Company has 1,000,000,000 authorized shares of capital stock (par value $.001) of which 900,000,000 are issued and allocated as follows: 150,000,000 to National, 110,000,000 to each of California, New Jersey, and New York, and 70,000,000 to each of Connecticut, Hawaii, Minnesota, Missouri, Texas, and Washington. The Trust has an unlimited number of shares of beneficial interest authorized.
YEAR ENDED SEPTEMBER 30, 2003 -------------------------------------------------------------------------------- CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 784,378 1,118,700 2,634,465 4,063,538 2,469,761 REINVESTMENT OF DISTRIBUTIONS 202,793 338,450 209,576 888,995 786,255 SHARES REACQUIRED (1,212,005) (2,073,364) (963,379) (3,103,766) (4,363,119) ------------------------------------------------------------------------------------------------------------------ INCREASE (DECREASE) (224,834) (616,214) 1,880,662 1,848,767 (1,107,103) ------------------------------------------------------------------------------------------------------------------ YEAR ENDED SEPTEMBER 30, 2003 -------------------------------------------------------------------------------- TEXAS WASHINGTON GEORGIA MICHIGAN PENNSYLVANIA ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 562,546 1,436,340 5,253,056 3,578,052 1,876,842 REINVESTMENT OF DISTRIBUTIONS 237,487 318,921 491,682 353,430 407,087 SHARES REACQUIRED (923,282) (1,270,360) (2,815,614) (1,989,612) (2,336,153) ------------------------------------------------------------------------------------------------------------------ INCREASE (DECREASE) (123,249) 484,901 2,929,124 1,941,870 (52,224) ------------------------------------------------------------------------------------------------------------------ YEAR ENDED SEPTEMBER 30, 2002 -------------------------------------------------------------------------------- CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 853,997 2,390,770 962,671 3,364,100 3,202,830 REINVESTMENT OF DISTRIBUTIONS 208,106 365,054 190,599 868,887 817,964 SHARES REACQUIRED (1,502,754) (1,535,997) (773,983) (2,234,491) (4,127,923) ------------------------------------------------------------------------------------------------------------------ INCREASE (DECREASE) (440,651) 1,219,827 379,287 1,998,496 (107,129) ------------------------------------------------------------------------------------------------------------------
139 NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2002 -------------------------------------------------------------------------------- TEXAS WASHINGTON GEORGIA MICHIGAN PENNSYLVANIA ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 662,436 945,389 5,149,300 2,017,019 1,803,527 REINVESTMENT OF DISTRIBUTIONS 241,267 302,561 342,996 313,339 404,088 SHARES REACQUIRED (928,704) (947,446) (1,736,593) (1,012,841) (1,561,369) ------------------------------------------------------------------------------------------------------------------ INCREASE (DECREASE) (25,001) 300,504 3,755,703 1,317,517 646,246 ------------------------------------------------------------------------------------------------------------------
Transactions (both shares and dollars) in Funds with multiple classes are as follows:
YEAR ENDED YEAR ENDED NATIONAL SEPTEMBER 30, 2003 SEPTEMBER 30, 2002 ------------------------------------------------------------------------------------------------------------------ CLASS A SHARES SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 5,669,665 $ 65,071,288 7,751,014 $ 87,781,034 REINVESTMENT OF DISTRIBUTIONS 1,359,829 15,627,071 1,428,874 16,160,809 SHARES REACQUIRED (7,418,567) (85,075,942) (9,175,849) (103,951,138) ------------------------------------------------------------------------------------------------------------------ INCREASE (DECREASE) (389,073) $ (4,377,583) 4,039 $ (9,295) ------------------------------------------------------------------------------------------------------------------ CLASS B SHARES ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 980,446 $ 11,338,944 1,127,290 $ 12,857,643 REINVESTMENT OF DISTRIBUTIONS 58,692 675,936 48,216 546,813 SHARES REACQUIRED (727,080) (8,357,818) (605,266) (6,875,994) ------------------------------------------------------------------------------------------------------------------ INCREASE 312,058 $ 3,657,062 570,240 $ 6,528,462 ------------------------------------------------------------------------------------------------------------------ CLASS C SHARES ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 988,068 $ 11,461,006 1,002,981 $ 11,383,352 REINVESTMENT OF DISTRIBUTIONS 80,448 925,745 74,735 846,978 SHARES REACQUIRED (577,892) (6,648,381) (605,076) (6,832,378) ------------------------------------------------------------------------------------------------------------------ INCREASE 490,624 $ 5,738,370 472,640 $ 5,397,952 ------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED CALIFORNIA SEPTEMBER 30, 2003 SEPTEMBER 30, 2002 ------------------------------------------------------------------------------------------------------------------ CLASS A SHARES SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 1,492,737 $ 16,255,433 2,019,108 $ 21,727,564 REINVESTMENT OF DISTRIBUTIONS 413,818 4,507,517 448,801 4,840,005 SHARES REACQUIRED (2,583,054) (28,071,598) (2,972,942) (31,999,921) ------------------------------------------------------------------------------------------------------------------ DECREASE (676,499) $ (7,308,648) (505,033) $ (5,432,352) ------------------------------------------------------------------------------------------------------------------ CLASS C SHARES ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 510,721 $ 5,606,781 338,503 $ 3,667,344 REINVESTMENT OF DISTRIBUTIONS 21,919 238,826 15,597 168,372 SHARES REACQUIRED (310,511) (3,360,618) (141,033) (1,511,658) ------------------------------------------------------------------------------------------------------------------ INCREASE 222,129 $ 2,484,989 213,067 $ 2,324,058 ------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED NEW YORK SEPTEMBER 30, 2003 SEPTEMBER 30, 2002 ------------------------------------------------------------------------------------------------------------------ CLASS A SHARES SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 2,926,447 $ 33,217,359 2,823,672 $ 31,478,472 REINVESTMENT OF DISTRIBUTIONS 594,191 6,775,806 613,701 6,853,956 SHARES REACQUIRED (3,567,933) (40,743,765) (3,456,554) (38,511,864) ------------------------------------------------------------------------------------------------------------------ DECREASE (47,295) $ (750,600) (19,181) $ (179,436) ------------------------------------------------------------------------------------------------------------------ CLASS C SHARES ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 506,318 $ 5,809,463 233,172 $ 2,609,870 REINVESTMENT OF DISTRIBUTIONS 16,052 183,062 12,420 138,937 SHARES REACQUIRED (192,259) (2,174,296) (88,141) (985,659) ------------------------------------------------------------------------------------------------------------------ INCREASE 330,111 $ 3,818,229 157,451 $ 1,763,148 ------------------------------------------------------------------------------------------------------------------
140 NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FLORIDA ------------------------------------------------------------------------------------------------------------------ CLASS A SHARES SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 1,544,362 $ 7,546,963 1,145,637 $ 5,514,044 REINVESTMENT OF DISTRIBUTIONS 314,963 1,533,647 312,748 1,501,638 SHARES REACQUIRED (2,768,788) (13,472,904) (1,887,030) (9,058,564) ------------------------------------------------------------------------------------------------------------------ DECREASE (909,463) $ (4,392,294) (428,645) $ (2,042,882) ------------------------------------------------------------------------------------------------------------------ CLASS C SHARES ------------------------------------------------------------------------------------------------------------------ SHARES SOLD 262,470 $ 1,292,387 202,583 $ 971,606 REINVESTMENT OF DISTRIBUTIONS 12,271 59,826 10,502 50,532 SHARES REACQUIRED (131,233) (643,551) (107,063) (511,602) ------------------------------------------------------------------------------------------------------------------ INCREASE 143,508 $ 708,662 106,022 $ 510,536 ------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD ENDED INSURED SEPTEMBER 30, 2003* ---------------------------------------------------------------------------------- CLASS A SHARES SHARES AMOUNT ---------------------------------------------------------------------------------- SHARES SOLD 368,851 $ 3,663,501 REINVESTMENT OF DISTRIBUTIONS 1,182 11,397 SHARES REACQUIRED (534) (5,208) ---------------------------------------------------------------------------------- INCREASE 369,499 $ 3,669,690 ----------------------------------------------------------------------------------
CLASS B SHARES SHARES AMOUNT ---------------------------------------------------------------------------------- SHARES SOLD 31,393 $ 307,348 REINVESTMENT OF DISTRIBUTIONS 4 38 SHARES REACQUIRED - - ---------------------------------------------------------------------------------- INCREASE 31,397 $ 307,386 ----------------------------------------------------------------------------------
CLASS C SHARES SHARES AMOUNT ---------------------------------------------------------------------------------- SHARES SOLD 31,544 $ 309,785 REINVESTMENT OF DISTRIBUTIONS 32 307 SHARES REACQUIRED - - ---------------------------------------------------------------------------------- INCREASE 31,576 $ 310,092 ----------------------------------------------------------------------------------
CLASS P SHARES SHARES AMOUNT ---------------------------------------------------------------------------------- SHARES SOLD 1,000 $ 10,000 REINVESTMENT OF DISTRIBUTIONS 4 42 SHARES REACQUIRED - - ---------------------------------------------------------------------------------- INCREASE 1,004 $ 10,042 ----------------------------------------------------------------------------------
* For the period June 23, 2003 (commencement of investment operations) to September 30, 2003. The majority of the outstanding capital shares of Insured are held by Lord Abbett and partners and employees of Lord Abbett. 141 INDEPENDENT AUDITORS' REPORT THE BOARD OF DIRECTORS AND SHAREHOLDERS, LORD ABBETT TAX-FREE INCOME FUND, INC.: We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Lord Abbett Tax-Free Income Fund, Inc. (the "Fund"), comprising Lord Abbett National Tax-Free Income Fund, Lord Abbett California Tax-Free Income Fund, Lord Abbett Connecticut Tax-Free Income Fund, Lord Abbett Hawaii Tax-Free Income Fund, Lord Abbett Minnesota Tax-Free Income Fund, Lord Abbett Missouri Tax-Free Income Fund, Lord Abbett New Jersey Tax-Free Income Fund, Lord Abbett New York Tax-Free Income Fund, Lord Abbett Texas Tax-Free Income Fund, and Lord Abbett Washington Tax-Free Income Fund, as of September 30, 2003, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2003 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the portfolios constituting Lord Abbett Tax-Free Income Fund, Inc., as of September 30, 2003, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP New York, New York November 18, 2003 142 INDEPENDENT AUDITORS' REPORT THE BOARD OF TRUSTEES AND SHAREHOLDERS, LORD ABBETT TAX-FREE INCOME TRUST: We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Lord Abbett Tax-Free Income Trust (the "Trust"), comprising Florida Series, Georgia Series, Michigan Series, Pennsylvania Series and Lord Abbett Insured Intermediate Tax-Free Fund, as of September 30, 2003, and the related statements of operations, the statements of changes in net assets and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2003 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the portfolios constituting Lord Abbett Tax-Free Income Trust as of September 30, 2003, the results of their operations, the changes in their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP New York, New York November 18, 2003 143 BASIC INFORMATION ABOUT MANAGEMENT The Company's Board of Directors and the Trust's Board of Trustees are responsible for the management of the business and affairs of the Company and Trust in accordance with the laws of the States of Maryland and Delaware. Each Board appoints officers who are responsible for the day-to-day operations of the Company and Trust and who execute policies authorized by the Boards. Each Board also approves an investment adviser to the Company and the Trust and continues to monitor the cost and quality of the services provided by the investment adviser, and annually considers whether to renew the contract with the adviser. Lord, Abbett & Co. LLC ("Lord Abbett"), a Delaware limited liability company, is the investment adviser of the Company and Trust. The following Director/Trustee is the Managing Partner of Lord Abbett and is an "interested person" as defined in the Act. Mr. Dow is also an officer, director, or trustee of each of the fourteen Lord Abbett-sponsored funds, which consist of 48 portfolios or series.
CURRENT POSITION LENGTH OF SERVICE NAME, ADDRESS AND WITH COMPANY PRINCIPAL OCCUPATION OTHER DATE OF BIRTH AND TRUST DURING PAST FIVE YEARS DIRECTORSHIPS --------------------------------------------------------------------------------------------------------------------- ROBERT S. DOW Director since 1989; Managing Partner and Chief N/A Lord, Abbett & Co. LLC Trustee since 1991 Investment Officer of Lord 90 Hudson Street and Chairman since Abbett since 1996. Jersey City, NJ 1996 Date of Birth: 3/8/1945
----------------- The following outside Directors/Trustees are also directors or trustees of each of the fourteen Lord Abbett-sponsored funds, which consist of 48 portfolios or series.
CURRENT POSITION LENGTH OF SERVICE NAME, ADDRESS AND WITH COMPANY PRINCIPAL OCCUPATION OTHER DATE OF BIRTH AND TRUST DURING PAST FIVE YEARS DIRECTORSHIPS --------------------------------------------------------------------------------------------------------------------- E. THAYER BIGELOW Director/Trustee since Managing General Currently serves as Bigelow Media, LLC 1994 Partner, Bigelow director of Adelphia 41 Madison Ave., Media, LLC (since Communications Inc., Suite 3810 2000); Senior Adviser, Crane Co. and Huttig New York, NY Time Warner Inc. (1998 Building Products Inc. Date of Birth: 10/22/1941 - 2000); Acting Chief Executive Officer of Courtroom Television Network (1997 - 1998); President and Chief Executive Officer of Time Warner Cable Programming, Inc. (1991 - 1997). WILLIAM H.T. BUSH Director/Trustee since Co-founder and Currently serves as Bush-O'Donnell & Co., Inc. 1998 Chairman of the Board director of Wellpoint 101 South Hanley Road of the financial Health Network, Inc., Suite 1250 advisory firm of DT Industries Inc., St. Louis, MO Bush-O'Donnell & and Engineered Support Date of Birth: 7/14/1938 Company (since 1986). Systems, Inc.
144 BASIC INFORMATION ABOUT MANAGEMENT (CONTINUED)
CURRENT POSITION LENGTH OF SERVICE NAME, ADDRESS AND WITH COMPANY PRINCIPAL OCCUPATION OTHER DATE OF BIRTH AND TRUST DURING PAST FIVE YEARS DIRECTORSHIPS --------------------------------------------------------------------------------------------------------------------- ROBERT B. CALHOUN, JR. Director/Trustee since Managing Director of Currently serves as Monitor Clipper Partners 1998 Monitor Clipper director of Avondale, 650 Madison Ave., 9th Fl. Partners (since 1997) Inc. and Interstate New York, NY and President of Bakeries Corp. Date of Birth: 10/25/1942 Clipper Asset Management Corp. (since 1991), both private equity investment funds. STEWART S. DIXON Director/Trustee Partner in the law N/A Wildman, Harrold, Allen & Dixon since 1976, retired firm of Wildman, 225 W. Wacker Drive, Suite 2800 12/31/2002 Harrold, Allen & Dixon Chicago, IL (since 1967). Date of Birth: 11/5/1930 FRANKLIN W. HOBBS Director/Trustee since Senior Advisor (since Currently serves as Houlihan Lokey 2000 April 2003) and Former director of Adolph Howard & Zukin Chief Executive Coors Company. 685 Third Ave. Officer of Houlihan New York, NY Lokey Howard & Zukin, Date of Birth: 7/30/1947 an investment bank (January 2002 - April 2003); Chairman of Warburg Dillon Read (1999 - 2001); Global Head of Corporate Finance of SBC Warburg Dillon Read (1997 - 1999); Chief Executive Officer of Dillon, Read & Co. (1994 - 1997). C. ALAN MACDONALD Director/Trustee since Retired - General Currently serves as 415 Round Hill Road 1988 Business and director of Greenwich, CT Governance Consulting Fountainhead Water Date of Birth: 5/19/1933 (since 1992); formerly Company, Lincoln President and CEO of Snacks, H.J. Baker, Nestle Foods. and Seix Fund, Inc.* THOMAS J. NEFF Director/Trustee since Chairman of Spencer Currently serves as Spencer Stuart 1982 Stuart, an executive director of Ace, Ltd. 277 Park Avenue search consulting firm and Exult, Inc. New York, NY (since 1996); Date of Birth: 10/2/1937 President of Spencer Stuart (1979-1996).
145 BASIC INFORMATION ABOUT MANAGEMENT (CONTINUED)
CURRENT POSITION LENGTH OF SERVICE NAME, ADDRESS AND WITH COMPANY PRINCIPAL OCCUPATION OTHER DATE OF BIRTH AND TRUST DURING PAST FIVE YEARS DIRECTORSHIPS --------------------------------------------------------------------------------------------------------------------- JAMES F. ORR, III Director/Trustee President and CEO of Currently serves as 80 Pinckney Street since 2002; retired LandingPoint Capital Chairman of Boston, MA 3/3/2003 (since 2002); Chairman Rockefeller Date of Birth: 3/5/1943 and CEO of United Foundation, Director Asset Management of Nashua Corp. and Corporation (2000 to SteelPoint 2001); Chairman and Technologies. CEO of UNUM Provident Corporation (1999 - merger); Chairman and CEO of UNUM Corporation (1988 - 1999).
---------- * Seix Fund, Inc. is a registered investment company that is advised by Seix Investment Advisors Inc. Seix Investment Advisors Inc.'s Chairman, CEO, and Chief Investment Officer is married to Robert Dow, the Company's and Trust's Chairman, CEO, and President and the Managing Partner of Lord Abbett. ---------- None of the officers listed below have received compensation from the Company or Trust. All the officers of the Company and Trust may also be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, New Jersey 07302.
CURRENT POSITION LENGTH OF PRINCIPAL OCCUPATION NAME, AND WITH COMPANY SERVICE OF DURING PAST (DATE OF BIRTH) AND TRUST CURRENT POSITION FIVE YEARS --------------------------------------------------------------------------------------------------------------------- ROBERT S. DOW Chairman, CEO and Elected in 1996 Managing Partner and (3/8/1945) President Chief Investment Officer of Lord Abbett since 1996. RICHARD D. SMOLA Executive Vice Elected in 2003 Partner and Investment (10/27/1956) President Manager, joined Lord Abbett in 1991. TRACIE E. AHERN Vice President and Elected in 1999 Partner and Director (1/12/1968) Treasurer of Portfolio Accounting and Operations, joined Lord Abbett in 1999, prior thereto Vice President - Head of Fund Administration of Morgan Grenfell. JOAN A. BINSTOCK Chief Financial Elected in 1999 Partner and Chief (3/4/1954) Officer and Vice Operations Officer, President joined Lord Abbett in 1999, prior thereto Chief Operating Officer of Morgan Grenfell. LINA BRANDOW Vice President Elected in 2002 Municipal Research (8/18/1959) Analyst, joined Lord Abbett in 1998, formerly Senior Vice President and Municipal Analyst at Lehman Brothers.
146 BASIC INFORMATION ABOUT MANAGEMENT (CONTINUED)
CURRENT POSITION LENGTH OF PRINCIPAL OCCUPATION NAME, AND WITH COMPANY SERVICE OF DURING PAST (DATE OF BIRTH) AND TRUST CURRENT POSITION FIVE YEARS --------------------------------------------------------------------------------------------------------------------- DANIEL E. CARPER Vice President Elected in 1998 Partner, joined (1/22/1952) (Company) Lord Abbett in 1979. 1991 (Trust) PHILIP P. FANG Vice President Elected in 1994 Investment Manager, (6/19/1965) joined Lord Abbett in 1991. PAUL A. HILSTAD Vice President and Elected in 1995 Partner and General (12/13/1942) Secretary Counsel, joined Lord Abbett in 1995. LAWRENCE H. KAPLAN Vice President and Elected in 1997 Partner and Deputy (1/16/1957) Assistant Secretary General Counsel, joined Lord Abbett in 1997. A. EDWARD OBERHAUS, III Vice President Elected in 1996 Partner and Manager of (12/21/1959) Equity Trading, joined Lord Abbett in 1983. CHRISTINA T. SIMMONS Vice President and Elected in 2000 Assistant General (11/12/1957) Assistant Secretary Counsel, joined Lord Abbett in 1999, formerly Assistant General Counsel of Prudential Investments from 1998 to 1999, prior thereto Counsel of Drinker, Biddle & Reath LLP, a law firm. BERNARD J. GRZELAK Assistant Treasurer Elected in 2003 Director of Fund (6/12/1971) Administration, joined Lord Abbett in 2003, formerly Vice President, Lazard Asset Management from 2000 to 2003, prior thereto Manager of Deloitte & Touche LLP. PETER SCOTT SMITH Vice President Elected in 2000 Investment Manager, (9/15/1966) joined Lord Abbett in 1992.
Please call 1-888-522-2388 for a copy of the Statement of Additional Information (SAI), which contains further information about the Company's Directors and the Trust's Trustees. It is available free upon request. 147 HOUSEHOLDING The Company and Trust have adopted a policy that allows them to send only one copy of the Funds' Prospectus, proxy material, annual report and semi-annual report to certain shareholders residing at the same "household." This reduces Fund expenses, which benefits you and other shareholders. If you need additional copies or do not want your mailings to be "householded," please call Lord Abbett at 800-821-5129 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219100, Kansas City, MO 64121. PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that Lord Abbett uses to vote proxies relating to the Funds' portfolio securities is available without charge, upon request, by calling 888-522-2388 or on Lord Abbett's web site at www.LordAbbett.com. 148 [LORD ABBETT(R) LOGO] Lord Abbett Tax-Free Income Fund Inc. Lord Abbett National Tax-Free Income Fund Lord Abbett California Tax-Free Income Fund Lord Abbett Connecticut Tax-Free Income Fund Lord Abbett Hawaii Tax-Free Income Fund Lord Abbett Minnesota Tax-Free Income Fund Lord Abbett Missouri Tax-Free Income Fund Lord Abbett New Jersey Tax-Free Income Fund Lord Abbett New York Tax-Free Income Fund Lord Abbett Texas Tax-Free Income Fund Lord Abbett Washington Tax-Free Income Fund This report when not used for the general Lord Abbett Tax-Free Income Trust information of shareholders of the Fund, is to Lord Abbett Insured Intermediate Tax-Free Fund be distributed only if preceded or accompanied Florida Series by a current Fund Prospectus. Georgia Series Michigan Series Lord Abbett Mutual Fund shares are distributed by: Pennsylvania Series LORD ABBETT DISTRIBUTOR LLC 90 Hudson Street - Jersey City, New Jersey 07302-3973
LATFI-2-903 (11/03) ITEM 2: Code of Ethics. (a) In accordance with applicable requirements, the Registrant adopted a Sarbanes-Oxley Code of Ethics on June 19, 2003 that applies to the principal executive officer and senior financial officers of the Registrant ("Code of Ethics"). The Code of Ethics was in effect from June 19, 2003 through the end of the reporting period on September 30, 2003 (the "Period"). (b) Not applicable. (c) The Registrant has not amended the Code of Ethics as described in Form N-CSR during the Period. (d) The Registrant has not granted any waiver, including an implicit waiver, from a provision of the Code of Ethics as described in Form N-CSR during the Period. (e) Not applicable. (f) See Item 10(a) concerning the filing of the Code of Ethics. ITEM 3: Audit Committee Financial Expert. The Registrant's Board of Directors has determined that each of the independent Trustees who comprise the audit committee are audit committee financial experts. The members of the audit committee are E. Thayer Bigelow, Robert B. Calhoun, and Franklin W. Hobbs. Each audit committee member is independent within the meaning of the Form N-CSR. ITEM 4: Principal Accountant Fees and Services. Not applicable. ITEM 5: Audit Committee of Listed Registrants Not applicable. ITEM 6: [Reserved] ITEM 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. ITEM 8: [Reserved] ITEM 9: Controls and Procedures. (a) Based on their evaluation of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of November 18, 2003, the Chief Executive Officer and Chief Financial Officer of the Registrant have concluded that such disclosure controls and procedures are reasonably designed and effective to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to them by others within those entities. (b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant's last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 10: Exhibits. ITEM 10(a): Code of Ethics, as required by Item 2, is attached hereto as part of EX-99.CODEETH. ITEM 10(b): (i) Certification of each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) is attached hereto as a part of EX-99.CERT. (ii) Certification of each principal executive officer and principal financial officer of the Registrant as required by Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto as a part of EX-99.906CERT. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. LORD ABBETT TAX-FREE INCOME FUND, INC. /s/ Robert S. Dow ----------------- Robert S. Dow Chief Executive Officer, Chairman and President /s/ Joan A. Binstock -------------------- Joan A. Binstock Chief Financial Officer and Vice President Date: November 18, 2003 Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. LORD ABBETT TAX-FREE INCOME FUND, INC. /s/ Robert S. Dow ----------------- Robert S. Dow Chief Executive Officer, Chairman and President /s/ Joan A. Binstock -------------------- Joan A. Binstock Chief Financial Officer and Vice President Date: November 18, 2003