Exhibit 17(e)
LEBENTHAL FUNDS, INC.
ANNUAL REPORT
NOVEMBER 30, 2004
"THE WORKHORSE OF INVESTMENTS."
[GRAPHIC]
LEBENTHAL
[LEBENTHAL LOGO]
THE WORKHORSE OF INVESTMENTS.
<Page>
LEBENTHAL FUNDS, INC. 120 BROADWAY, NEW YORK, NY 10271
212-425-6116
OUTSIDE NYC TOLL FREE 1-800-594-7078
www.lebenthal.com
Dear Shareholders:
Despite continuing market uncertainty as a result of war, increasing oil prices,
and Federal Reserve tightening, in general the past fiscal year was positive for
bonds. The market appreciated the fact that the Federal Reserve (the "Fed")
acted on what it perceived to be a growing threat of inflation. While the Fed
maintained its overnight interest rate ("Fed Funds Rate") at 1.00% for a good
portion of the year, in June the Fed changed its stance on short-term rates
significantly, and began increasing the Fed Funds Rate in 0.25% increments.
At the beginning of our fiscal year the general consensus had been that the Fed
would not increase the Fed Funds Rate until late 2004 or 2005. However, during
the 2nd calendar quarter of 2004, economic indicators improved which led to the
Fed's gradual tightening of rates. Beginning on June 30, 2004, the Fed raised
rates four times, and at the end of the fiscal year on November 30, 2004, the
Fed Funds rate now stands at 2.00%. The expectation is that the Fed will again
raise rates another 0.25% on December 14th.
While short-maturity yields increased over the course of the fiscal year,
long-maturity yields at times exhibited dramatic volatility, and by the end of
the reporting period were actually flat or lower than they were at the beginning
of the fiscal year.
[CHART]
<Table>
<Caption>
3-MONTH 10-YEAR 30-YEAR
TREASURY BILL TREASURY BOND TREASURY BOND
11/28/2003 0.93% 4.33% 5.13%
2/27/2004 0.94% 3.97% 4.84%
5/31/2004 1.07% 4.65% 5.35%
8/31/2004 1.58% 4.12% 4.93%
11/30/2004 2.23% 4.35% 5.00%
</Table>
Our strategy over the course of the past year has been to be defensive with our
investment decisions in anticipation of the flattening of the yield curve.
<Page>
It is our opinion that the increase in bond prices over the course of the year,
even with the Fed's tightening on the short-end of the curve, was a result of
several different, and at times conflicting, trends:
- - A shift away from a jobless recovery to an economy creating employment was
finally established. After months of moderate numbers, on April 2, 2004, the
non-farm payroll numbers increased by 308,000, rather than the consensus
estimate for an increase of 120,000. The consequences of this increased
employment number were significant, as the market perceived that an increase
in employment prospects could lead to a tight labor market. The tight labor
market would force manufacturing prices higher, and eventually cause an
increase in inflation. As a result, in the period from April until July,
longer-maturity bonds experienced price erosion. Excluding short periods of
time that were likely related to the numerous hurricanes on the Gulf coast,
employment generally continued to improve over the remainder of the year.
- - Concerns surrounding the threat of terrorism continued to affect the markets.
While there were occasional "flights to quality" on days of particularly
violent behavior, the concentration of the world's oil supply in the Middle
East sparked fears of future oil shocks. These fears, coupled with a
significant increase in the cost of oil, may have caused initial concerns
about inflation, and inflation uncertainties translate into bond market
volatility. However, in reality, the spike in oil prices actually supported
bond prices -- especially during the 3rd calendar quarter. When oil prices
surged through $50/barrel, traditional wisdom would predict an increase in
bond yields to compensate for perceived burgeoning inflation. However,
economists predicted that oil price increases would choke the weak economic
improvement, and as such, rising oil prices were actually viewed as
anti-inflationary.
- - The implications of a growing economy cast a positive note on the
creditworthiness of most, but not all, municipalities. In New Jersey, the
state court ruled that the Governor cannot borrow to fund increased spending,
which is very good news for the state's credit. Following the end of the
third quarter, Moody's changed the Commonwealth of Massachusetts' rating from
Aa2 with negative implications to Aa2 stable. They also increased the State
of New York's rating from A2 to A1.
- - The issuance of new municipal bonds decreased as rates began to rise. During
the first quarter of 2004 municipalities were issuing new debt at a record
pace, but by the end of the third quarter there was an 8.8% decline in new
issues relative to the same period in 2003. Most notably, the decrease in
supply was greatest when interest rates began to rise in April and May, ahead
of actual Fed interest rate increases. A decrease in supply minimizes
pressure on the market, and generally results in higher prices and lower
yields relative to other fixed income sectors.
- - The dramatic increase in rates during the second quarter generated
substantial retail interest in the bond market. When it was possible to buy
5% tax free bonds at par, brokers reported substantial sales to retail
investors. On the other hand, institutional investors tend to prefer more
defensive structures than par bond offer, and will therefore purchase premium
bonds. The market now reflects this split in demand with new issues having a
bifurcation of coupons.
It is our belief that the Fed will continue to be concerned about the
inflationary effects of a growing economy in order to reassure the market that
it is serious about keeping inflation in check. The general rate decline across
most of the yield curve implies that the market approves of the Fed's firm yet
measured approach to managing the growth phase of the economic cycle.
Going forward, it is our opinion that the economy will continue to improve, and
that the bond market will continue to have future adjustments. As such, we will
continue to purchase bonds with defensive characteristics as we do not think it
is appropriate to shift to an aggressive stance at this time.
/s/ Gregory W. Serbe
<Page>
LEBENTHAL NEW YORK MUNICIPAL BOND FUND - CLASS A
PERFORMANCE COMPARISON CHART
The following chart compares the performance of Lebenthal New York Municipal
Bond Fund - Class A (with and without the 4.5% sales load), for the one year,
five year, ten year and since inception periods, against the Lehman Brothers
Municipal Bond Index (Lehman Index) for the same time periods. It is important
to keep in mind that the Lehman Index excludes the effects of any fees or sales
charges, and does not reflect state-specific bond market performance.
[CHART]
LEBENTHAL NEW YORK MUNICIPAL BOND FUND - CLASS A
Performance Comparison Chart
<Table>
<Caption>
LEHMAN WITH LOAD WITHOUT LOAD
6/24/91 $ 10,000 $ 9,550 $ 10,000
8/31/91 $ 10,102 $ 9,577 $ 10,028
9/30/91 $ 10,233 $ 9,643 $ 10,098
10/31/91 $ 10,325 $ 9,765 $ 10,225
11/30/91 $ 10,354 $ 9,751 $ 10,210
12/31/91 $ 10,577 $ 10,017 $ 10,489
1/31/92 $ 10,601 $ 9,913 $ 10,380
2/29/92 $ 10,604 $ 9,982 $ 10,452
3/31/92 $ 10,609 $ 10,018 $ 10,490
4/30/92 $ 10,703 $ 10,117 $ 10,594
5/31/92 $ 10,829 $ 10,310 $ 10,796
6/30/92 $ 11,011 $ 10,561 $ 11,059
7/31/92 $ 11,342 $ 10,996 $ 11,514
8/31/92 $ 11,231 $ 10,750 $ 11,257
9/30/92 $ 11,304 $ 10,778 $ 11,285
10/31/92 $ 11,193 $ 10,557 $ 11,055
11/30/92 $ 11,393 $ 10,891 $ 11,404
12/31/92 $ 11,509 $ 11,026 $ 11,545
1/31/93 $ 11,643 $ 11,156 $ 11,682
2/28/93 $ 12,064 $ 11,655 $ 12,204
3/31/93 $ 11,936 $ 11,526 $ 12,069
4/30/93 $ 12,057 $ 11,683 $ 12,233
5/31/93 $ 12,125 $ 11,764 $ 12,318
6/30/93 $ 12,327 $ 11,955 $ 12,518
7/31/93 $ 12,343 $ 11,978 $ 12,542
8/31/93 $ 12,600 $ 12,283 $ 12,862
9/30/93 $ 12,743 $ 12,425 $ 13,010
10/31/93 $ 12,768 $ 12,435 $ 13,021
11/30/93 $ 12,655 $ 12,262 $ 12,840
12/31/93 $ 12,922 $ 12,534 $ 13,125
1/31/94 $ 13,070 $ 12,678 $ 13,276
2/28/94 $ 12,731 $ 12,327 $ 12,908
3/31/94 $ 12,213 $ 11,659 $ 12,208
4/30/94 $ 12,316 $ 11,653 $ 12,202
5/31/94 $ 12,423 $ 11,801 $ 12,357
6/30/94 $ 12,347 $ 11,709 $ 12,261
7/31/94 $ 12,573 $ 11,987 $ 12,552
8/31/94 $ 12,617 $ 12,028 $ 12,595
9/30/94 $ 12,432 $ 11,751 $ 12,305
10/31/94 $ 12,211 $ 11,404 $ 11,941
11/30/94 $ 11,990 $ 11,074 $ 11,595
12/31/94 $ 12,254 $ 11,441 $ 11,980
1/31/95 $ 12,604 $ 11,957 $ 12,521
2/28/95 $ 12,971 $ 12,376 $ 12,959
3/31/95 $ 13,120 $ 12,478 $ 13,066
4/30/95 $ 13,136 $ 12,526 $ 13,116
5/31/95 $ 13,555 $ 12,968 $ 13,579
6/30/95 $ 13,437 $ 12,915 $ 13,524
7/31/95 $ 13,565 $ 12,906 $ 13,515
8/31/95 $ 13,737 $ 13,086 $ 13,703
9/30/95 $ 13,824 $ 13,166 $ 13,786
10/31/95 $ 14,024 $ 13,394 $ 14,026
11/30/95 $ 14,257 $ 13,729 $ 14,376
12/31/95 $ 14,394 $ 13,872 $ 14,526
1/31/96 $ 14,503 $ 13,962 $ 14,620
2/29/96 $ 14,405 $ 13,907 $ 14,563
3/31/96 $ 14,220 $ 13,664 $ 14,313
4/30/96 $ 14,181 $ 13,589 $ 14,234
5/31/96 $ 14,175 $ 13,610 $ 14,256
6/30/96 $ 14,329 $ 13,830 $ 14,486
7/31/96 $ 14,460 $ 13,981 $ 14,645
8/31/96 $ 14,457 $ 14,001 $ 14,666
9/30/96 $ 14,659 $ 14,242 $ 14,918
10/31/96 $ 14,825 $ 14,375 $ 15,057
11/30/96 $ 15,096 $ 14,548 $ 15,238
12/31/96 $ 15,033 $ 14,498 $ 15,187
1/31/97 $ 15,061 $ 14,472 $ 15,159
2/28/97 $ 15,200 $ 14,611 $ 15,305
3/31/97 $ 14,998 $ 14,450 $ 15,136
4/30/97 $ 15,124 $ 14,592 $ 15,285
5/31/97 $ 15,351 $ 14,784 $ 15,486
6/30/97 $ 15,515 $ 14,924 $ 15,633
7/31/97 $ 15,945 $ 15,474 $ 16,208
8/31/97 $ 15,795 $ 15,370 $ 16,099
9/30/97 $ 15,983 $ 15,524 $ 16,262
10/31/97 $ 16,085 $ 15,649 $ 16,392
11/30/97 $ 16,180 $ 15,748 $ 16,496
12/31/97 $ 16,416 $ 15,982 $ 16,741
1/31/98 $ 16,585 $ 16,202 $ 16,971
2/28/98 $ 16,590 $ 16,207 $ 16,976
3/31/98 $ 16,605 $ 16,238 $ 17,009
4/30/98 $ 16,530 $ 16,170 $ 16,938
5/31/98 $ 16,792 $ 16,434 $ 17,214
6/30/98 $ 16,857 $ 16,541 $ 17,326
7/31/98 $ 16,899 $ 16,590 $ 17,378
8/31/98 $ 17,161 $ 16,857 $ 17,657
9/30/98 $ 17,376 $ 17,074 $ 17,831
10/31/98 $ 17,320 $ 16,999 $ 17,800
11/30/98 $ 17,408 $ 17,077 $ 17,882
12/31/98 $ 17,452 $ 17,064 $ 17,868
1/31/99 $ 17,660 $ 17,219 $ 18,030
2/28/99 $ 17,582 $ 17,227 $ 18,039
3/31/99 $ 17,606 $ 17,298 $ 18,113
4/30/99 $ 17,650 $ 17,397 $ 18,216
5/31/99 $ 17,548 $ 17,278 $ 18,093
6/30/99 $ 17,295 $ 17,163 $ 17,971
7/31/99 $ 17,358 $ 17,202 $ 18,013
8/31/99 $ 17,219 $ 17,073 $ 17,878
9/30/99 $ 17,226 $ 17,071 $ 17,876
10/31/99 $ 17,040 $ 16,764 $ 17,554
11/30/99 $ 17,220 $ 16,759 $ 17,549
12/31/99 $ 17,091 $ 16,642 $ 17,426
1/31/2000 $ 17,018 $ 16,617 $ 17,400
2/29/2000 $ 17,215 $ 17,036 $ 17,838
3/31/2000 $ 17,592 $ 17,460 $ 18,282
4/30/2000 $ 17,488 $ 17,406 $ 18,226
5/31/2000 $ 17,397 $ 17,381 $ 18,200
6/30/2000 $ 17,858 $ 17,906 $ 18,750
7/31/2000 $ 18,107 $ 18,248 $ 19,108
8/31/2000 $ 18,385 $ 18,593 $ 19,469
9/30/2000 $ 18,290 $ 18,586 $ 19,461
10/31/2000 $ 18,489 $ 18,744 $ 19,627
11/30/2000 $ 18,630 $ 18,997 $ 19,892
12/31/2000 $ 19,090 $ 19,642 $ 20,567
1/31/2001 $ 19,279 $ 19,904 $ 20,842
2/28/2001 $ 19,341 $ 20,122 $ 21,070
3/31/2001 $ 21,081 $ 20,315 $ 21,272
4/30/2001 $ 20,854 $ 20,186 $ 21,137
5/31/2001 $ 21,079 $ 20,430 $ 21,393
6/30/2001 $ 21,220 $ 20,650 $ 21,623
7/31/2001 $ 21,534 $ 21,098 $ 22,092
8/31/2001 $ 21,889 $ 21,558 $ 22,574
9/30/2001 $ 21,815 $ 21,446 $ 22,457
10/31/2001 $ 22,074 $ 21,721 $ 22,744
11/30/2001 $ 21,889 $ 21,682 $ 22,703
12/31/2001 $ 21,682 $ 21,430 $ 22,439
1/31/2002 $ 22,058 $ 21,869 $ 22,900
2/28/2002 $ 22,324 $ 22,256 $ 23,305
3/31/2002 $ 21,886 $ 21,815 $ 22,843
4/30/2002 $ 22,314 $ 22,125 $ 23,167
5/31/2002 $ 22,450 $ 22,299 $ 23,350
6/30/2002 $ 22,687 $ 22,556 $ 23,619
7/31/2002 $ 22,979 $ 22,896 $ 23,975
8/31/2002 $ 23,255 $ 23,343 $ 24,443
9/30/2002 $ 23,765 $ 24,041 $ 25,173
10/31/2002 $ 23,371 $ 23,595 $ 24,707
11/30/2002 $ 23,274 $ 23,520 $ 24,628
12/31/2002 $ 23,765 $ 24,104 $ 25,240
1/31/2003 $ 23,705 $ 24,007 $ 25,138
2/28/2003 $ 24,036 $ 24,422 $ 25,572
3/31/2003 $ 24,050 $ 24,400 $ 25,550
4/30/2003 $ 24,209 $ 24,557 $ 25,714
5/31/2003 $ 24,776 $ 25,297 $ 26,489
6/30/2003 $ 24,671 $ 25,242 $ 26,432
7/31/2003 $ 23,807 $ 24,412 $ 25,563
8/31/2003 $ 23,985 $ 24,619 $ 25,780
9/30/2003 $ 24,690 $ 25,276 $ 26,467
10/31/2003 $ 24,566 $ 25,269 $ 26,460
11/30/2003 $ 24,822 $ 25,652 $ 26,861
12/31/2003 $ 25,028 $ 25,847 $ 27,065
1/31/2004 $ 25,171 $ 26,000 $ 27,225
2/28/2004 $ 25,550 $ 26,434 $ 27,680
3/31/2004 $ 25,461 $ 26,339 $ 27,580
4/30/2004 $ 24,858 $ 25,591 $ 26,797
5/31/2004 $ 24,768 $ 25,491 $ 26,692
6/30/2004 $ 24,858 $ 25,489 $ 26,690
7/31/2004 $ 25,185 $ 25,863 $ 27,082
8/31/2004 $ 25,690 $ 26,300 $ 27,540
9/30/2004 $ 25,826 $ 26,487 $ 27,735
10/31/2004 $ 26,048 $ 26,704 $ 27,963
11/30/2004 $ 25,834 $ 26,440 $ 27,686
</Table>
<Table>
<Caption>
AVERAGE ANNUAL
TOTAL RETURN SINCE
ONE FIVE TEN COMMENCEMENT OF OPERATIONS
YEAR YEARS YEARS JUNE 24, 1991
Lebenthal New York - Class A
Municipal Bond Fund:
with sales load (1.57)% 5.78% 6.85% 4.97%
without sales load 3.07% 6.76% 7.34% 5.33%
Lehman Index 4.07% 6.78% 7.16% 6.84%
</Table>
Past performance is not predictive of future performance. The performance
information and graph do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares.
<Page>
LEBENTHAL NEW YORK MUNICIPAL BOND FUND - CLASS B
PERFORMANCE COMPARISON CHART
The following chart compares the performance of Lebenthal New York Municipal
Bond Fund - Class B (with and without the 5% back end contingent deferred sales
load), for the one year, five year and since inception periods, against the
Lehman Brothers Municipal Bond Index (Lehman Index) for the same time periods.
It is important to keep in mind that the Lehman Index excludes the effects of
any fees or sales charges, and does not reflect state-specific bond market
performance.
[CHART]
LEBENTHAL NEW YORK MUNICIPAL BOND FUND - CLASS B
Performance Comparison Chart
<Table>
<Caption>
LEHMAN WITHOUT LOAD
12/3/97 $ 10,000 $ 10,000
12/31/97 $ 10,146 $ 10,036
1/31/98 $ 10,251 $ 10,152
2/28/98 $ 10,254 $ 10,160
3/31/98 $ 10,263 $ 10,156
4/30/98 $ 10,217 $ 10,106
5/31/98 $ 10,378 $ 10,266
6/30/98 $ 10,419 $ 10,339
7/31/98 $ 10,445 $ 10,349
8/31/98 $ 10,606 $ 10,508
9/30/98 $ 10,739 $ 10,630
10/31/98 $ 10,705 $ 10,604
11/30/98 $ 10,759 $ 10,650
12/31/98 $ 10,786 $ 10,652
1/31/99 $ 10,915 $ 10,750
2/28/99 $ 10,866 $ 10,732
3/31/99 $ 10,882 $ 10,765
4/30/99 $ 10,909 $ 10,814
5/31/99 $ 10,846 $ 10,734
6/30/99 $ 10,689 $ 10,656
7/31/99 $ 10,728 $ 10,668
8/31/99 $ 10,642 $ 10,562
9/30/99 $ 10,646 $ 10,548
10/31/99 $ 10,531 $ 10,361
11/30/99 $ 10,643 $ 10,333
12/31/99 $ 10,563 $ 10,249
1/31/2000 $ 10,518 $ 10,237
2/29/2000 $ 10,640 $ 10,470
3/31/2000 $ 10,873 $ 10,721
4/30/2000 $ 10,809 $ 10,690
5/31/2000 $ 10,752 $ 10,663
6/30/2000 $ 11,037 $ 10,973
7/31/2000 $ 11,191 $ 11,171
8/31/2000 $ 11,363 $ 11,357
9/30/2000 $ 11,304 $ 11,357
10/31/2000 $ 11,427 $ 11,445
11/30/2000 $ 11,514 $ 11,576
12/31/2000 $ 11,799 $ 11,976
1/31/2001 $ 11,915 $ 12,128
2/28/2001 $ 11,953 $ 12,236
3/31/2001 $ 13,029 $ 12,354
4/30/2001 $ 12,889 $ 12,244
5/31/2001 $ 13,028 $ 12,394
6/30/2001 $ 13,115 $ 12,514
7/31/2001 $ 13,309 $ 12,771
8/31/2001 $ 13,529 $ 13,033
9/30/2001 $ 13,483 $ 12,936
10/31/2001 $ 13,643 $ 13,088
11/30/2001 $ 13,529 $ 13,051
12/31/2001 $ 13,401 $ 12,902
1/31/2002 $ 13,633 $ 13,152
2/28/2002 $ 13,797 $ 13,371
3/31/2002 $ 13,527 $ 13,092
4/30/2002 $ 13,791 $ 13,264
5/31/2002 $ 13,875 $ 13,355
6/30/2002 $ 14,022 $ 13,479
7/31/2002 $ 14,202 $ 13,684
8/31/2002 $ 14,373 $ 13,941
9/30/2002 $ 14,688 $ 14,348
10/31/2002 $ 14,444 $ 14,074
11/30/2002 $ 14,384 $ 14,016
12/31/2002 $ 14,688 $ 14,348
1/31/2003 $ 14,651 $ 14,276
2/28/2003 $ 14,856 $ 14,508
3/31/2003 $ 14,864 $ 14,481
4/30/2003 $ 14,963 $ 14,560
5/31/2003 $ 15,313 $ 15,001
6/30/2003 $ 15,248 $ 14,936
7/31/2003 $ 14,714 $ 14,431
8/31/2003 $ 14,824 $ 14,538
9/30/2003 $ 15,260 $ 14,910
10/31/2003 $ 15,183 $ 14,892
11/30/2003 $ 15,341 $ 15,106
12/31/2003 $ 15,468 $ 15,230
1/31/2004 $ 15,557 $ 15,292
2/28/2004 $ 15,791 $ 15,557
3/31/2004 $ 15,736 $ 15,492
4/30/2004 $ 15,363 $ 15,025
5/31/2004 $ 15,308 $ 14,958
6/30/2004 $ 15,364 $ 14,967
7/31/2004 $ 15,566 $ 15,160
8/31/2004 $ 15,877 $ 15,425
9/30/2004 $ 15,962 $ 15,507
10/31/2004 $ 16,099 $ 15,625
11/30/2004 $ 15,967 $ 15,465
</Table>
<Table>
<Caption>
AVERAGE ANNUAL
TOTAL RETURN SINCE
ONE FIVE COMMENCEMENT OF OPERATIONS
YEAR YEARS DECEMBER 3, 1997
Lebenthal New York - Class B
Municipal Bond Fund:
with sales load (1.56)% 5.87% 4.27%
without sales load 2.37% 6.02% 4.27%
Lehman Index 4.07% 6.78% 5.76%
</Table>
Past performance is not predictive of future performance. The performance
information and graph do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares.
<Page>
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
PERFORMANCE COMPARISON CHART
The following chart compares the performance of Lebenthal New Jersey Municipal
Bond Fund (with and without the 4.5% sales load), for the one year, five year,
ten year and since inception periods, against the Lehman Brothers Municipal Bond
Index (Lehman Index) for the same time periods. It is important to keep in mind
that the Lehman Index excludes the effects of any fees or sales charges, and
does not reflect state-specific bond market performance.
[CHART]
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
Performance Comparison Chart
<Table>
<Caption>
LEHMAN WITH LOAD WITHOUT LOAD
12/1/93 $ 10,000 $ 9,550 $ 10,000
12/31/93 $ 10,211 $ 9,688 $ 10,148
1/31/94 $ 10,328 $ 9,824 $ 10,290
2/28/94 $ 10,060 $ 9,398 $ 9,844
3/31/94 $ 9,651 $ 8,762 $ 9,178
4/30/94 $ 9,732 $ 8,757 $ 9,173
5/31/94 $ 9,817 $ 8,892 $ 9,314
6/30/94 $ 9,757 $ 8,790 $ 9,207
7/31/94 $ 9,936 $ 8,959 $ 9,385
8/31/94 $ 9,970 $ 8,984 $ 9,411
9/30/94 $ 9,824 $ 8,776 $ 9,193
10/31/94 $ 9,649 $ 8,511 $ 8,915
11/30/94 $ 9,475 $ 8,301 $ 8,695
12/31/94 $ 9,683 $ 8,558 $ 8,964
1/31/95 $ 9,960 $ 8,768 $ 9,185
2/28/95 $ 10,250 $ 9,007 $ 9,435
3/31/95 $ 10,368 $ 9,089 $ 9,521
4/30/95 $ 10,380 $ 9,105 $ 9,537
5/31/95 $ 10,711 $ 9,391 $ 9,837
6/30/95 $ 10,618 $ 9,291 $ 9,732
7/31/95 $ 10,719 $ 9,361 $ 9,806
8/31/95 $ 10,855 $ 9,495 $ 9,946
9/30/95 $ 10,924 $ 9,541 $ 9,994
10/31/95 $ 11,082 $ 9,718 $ 10,179
11/30/95 $ 11,266 $ 9,926 $ 10,398
12/31/95 $ 11,374 $ 10,032 $ 10,508
1/31/96 $ 11,460 $ 10,137 $ 10,618
2/29/96 $ 11,382 $ 10,088 $ 10,567
3/31/96 $ 11,237 $ 9,863 $ 10,331
4/30/96 $ 11,205 $ 9,839 $ 10,307
5/31/96 $ 11,201 $ 9,881 $ 10,351
6/30/96 $ 11,323 $ 9,974 $ 10,447
7/31/96 $ 11,426 $ 10,113 $ 10,593
8/31/96 $ 11,424 $ 10,140 $ 10,622
9/30/96 $ 11,584 $ 10,294 $ 10,783
10/31/96 $ 11,714 $ 10,372 $ 10,864
11/30/96 $ 11,929 $ 10,510 $ 11,009
12/31/96 $ 11,879 $ 10,510 $ 11,009
1/31/97 $ 11,901 $ 10,510 $ 11,010
2/28/97 $ 12,011 $ 10,621 $ 11,125
3/31/97 $ 11,851 $ 10,489 $ 10,988
4/30/97 $ 11,951 $ 10,602 $ 11,105
5/31/97 $ 12,130 $ 10,775 $ 11,287
6/30/97 $ 12,260 $ 10,883 $ 11,405
7/31/97 $ 12,599 $ 11,243 $ 11,777
8/31/97 $ 12,481 $ 11,143 $ 11,676
9/30/97 $ 12,629 $ 11,267 $ 11,808
10/31/97 $ 12,710 $ 11,331 $ 11,871
11/30/97 $ 12,785 $ 11,441 $ 11,989
12/31/97 $ 12,972 $ 11,619 $ 12,174
1/31/98 $ 13,105 $ 11,802 $ 12,327
2/28/98 $ 13,109 $ 11,781 $ 12,311
3/31/98 $ 13,121 $ 11,747 $ 12,274
4/30/98 $ 13,062 $ 11,694 $ 12,216
5/31/98 $ 13,268 $ 11,911 $ 12,442
6/30/98 $ 13,320 $ 11,993 $ 12,528
7/31/98 $ 13,354 $ 12,009 $ 12,543
8/31/98 $ 13,560 $ 12,212 $ 12,755
9/30/98 $ 13,730 $ 12,385 $ 12,932
10/31/98 $ 13,686 $ 12,320 $ 12,955
11/30/98 $ 13,756 $ 12,390 $ 13,028
12/31/98 $ 13,790 $ 12,395 $ 13,033
1/31/99 $ 13,954 $ 12,565 $ 13,212
2/28/99 $ 13,893 $ 12,557 $ 13,204
3/31/99 $ 13,912 $ 12,583 $ 13,232
4/30/99 $ 13,947 $ 12,649 $ 13,300
5/31/99 $ 13,866 $ 12,574 $ 13,222
6/30/99 $ 13,667 $ 12,433 $ 13,074
7/31/99 $ 13,716 $ 12,466 $ 13,108
8/31/99 $ 13,606 $ 12,319 $ 12,953
9/30/99 $ 13,612 $ 12,241 $ 12,872
10/31/99 $ 13,465 $ 12,034 $ 12,654
11/30/99 $ 13,607 $ 12,141 $ 12,767
12/31/99 $ 13,505 $ 12,042 $ 12,662
1/31/2000 $ 13,447 $ 12,059 $ 12,680
2/29/2000 $ 13,603 $ 12,302 $ 12,936
3/31/2000 $ 13,901 $ 12,545 $ 13,191
4/30/2000 $ 13,819 $ 12,522 $ 13,167
5/31/2000 $ 13,747 $ 12,541 $ 13,187
6/30/2000 $ 14,111 $ 12,948 $ 13,615
7/31/2000 $ 14,308 $ 13,202 $ 13,882
8/31/2000 $ 14,528 $ 13,419 $ 14,110
9/30/2000 $ 14,452 $ 13,356 $ 14,043
10/31/2000 $ 14,610 $ 13,472 $ 14,166
11/30/2000 $ 14,721 $ 13,672 $ 14,377
12/31/2000 $ 15,085 $ 14,072 $ 14,797
1/31/2001 $ 15,234 $ 14,266 $ 15,001
2/28/2001 $ 15,283 $ 14,458 $ 15,203
3/31/2001 $ 16,658 $ 14,580 $ 15,331
4/30/2001 $ 16,478 $ 14,550 $ 15,299
5/31/2001 $ 16,656 $ 14,671 $ 15,426
6/30/2001 $ 16,768 $ 14,687 $ 15,443
7/31/2001 $ 17,016 $ 14,931 $ 15,700
8/31/2001 $ 17,297 $ 15,197 $ 15,979
9/30/2001 $ 17,238 $ 15,112 $ 15,891
10/31/2001 $ 17,443 $ 15,315 $ 16,104
11/30/2001 $ 17,296 $ 15,259 $ 16,045
12/31/2001 $ 17,133 $ 15,160 $ 15,941
1/31/2002 $ 17,430 $ 15,479 $ 16,276
2/28/2002 $ 17,640 $ 15,643 $ 16,449
3/31/2002 $ 17,294 $ 15,363 $ 16,154
4/30/2002 $ 17,632 $ 15,621 $ 16,426
5/31/2002 $ 17,740 $ 15,812 $ 16,626
6/30/2002 $ 17,927 $ 15,979 $ 16,802
7/31/2002 $ 18,158 $ 16,214 $ 17,049
8/31/2002 $ 18,376 $ 16,404 $ 17,249
9/30/2002 $ 18,779 $ 16,783 $ 17,648
10/31/2002 $ 18,467 $ 16,628 $ 17,485
11/30/2002 $ 18,391 $ 16,591 $ 17,445
12/31/2002 $ 18,779 $ 17,001 $ 17,877
1/31/2003 $ 18,731 $ 16,938 $ 17,811
2/28/2003 $ 18,993 $ 17,256 $ 18,145
3/31/2003 $ 19,004 $ 17,215 $ 18,102
4/30/2003 $ 19,130 $ 17,398 $ 18,294
5/31/2003 $ 19,578 $ 17,869 $ 18,789
6/30/2003 $ 19,495 $ 17,749 $ 18,664
7/31/2003 $ 18,812 $ 17,159 $ 18,043
8/31/2003 $ 18,953 $ 17,258 $ 18,147
9/30/2003 $ 19,510 $ 17,833 $ 18,751
10/31/2003 $ 19,412 $ 17,861 $ 18,781
11/30/2003 $ 19,614 $ 18,193 $ 19,130
12/31/2003 $ 19,777 $ 18,381 $ 19,327
1/31/2004 $ 19,890 $ 18,467 $ 19,418
2/28/2004 $ 20,189 $ 18,785 $ 19,752
3/31/2004 $ 20,119 $ 18,717 $ 19,681
4/30/2004 $ 19,642 $ 18,236 $ 19,175
5/31/2004 $ 19,571 $ 18,088 $ 19,020
6/30/2004 $ 19,642 $ 18,175 $ 19,111
7/31/2004 $ 19,901 $ 18,448 $ 19,398
8/31/2004 $ 20,300 $ 18,826 $ 19,796
9/30/2004 $ 20,407 $ 18,995 $ 19,974
10/31/2004 $ 20,583 $ 19,191 $ 20,179
11/30/2004 $ 20,413 $ 19,070 $ 20,052
</Table>
<Table>
<Caption>
AVERAGE ANNUAL
TOTAL RETURN SINCE
ONE FIVE TEN COMMENCEMENT OF OPERATIONS
YEAR YEARS YEARS DECEMBER 1, 1993
Lebenthal New Jersey
Municipal Bond Fund:
with sales load (0.43)% 5.86% 6.55% 4.75%
without sales load 4.26% 6.83% 7.04% 5.19%
Lehman Index 4.07% 6.78% 7.16% 5.97%
</Table>
Past performance is not predictive of future performance. The performance
information and graph do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares.
<Page>
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
PERFORMANCE COMPARISON CHART
The following chart compares the performance of Lebenthal Taxable Municipal Bond
Fund (with and without the 4.5% sales load), for the one year, five year, ten
year and since inception periods, against the Lehman Brothers Long U.S. Credit
Index (Lehman Index) (formerly known as the Lehman Brothers Long Corporate Bond
Index) for the same time periods. It is important to keep in mind that the
Lehman Index excludes the effects of any fees or sales charges.
[CHART]
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
Performance Comparison Chart
<Table>
<Caption>
LEHMAN WITH LOAD WITHOUT LOAD
12/1/93 $ 10,000 $ 9,550 $ 10,000
12/31/93 $ 10,054 $ 9,711 $ 10,172
1/31/94 $ 10,300 $ 9,744 $ 10,206
2/28/94 $ 9,989 $ 9,745 $ 10,208
3/31/94 $ 9,586 $ 9,493 $ 9,944
4/30/94 $ 9,472 $ 9,385 $ 9,831
5/31/94 $ 9,376 $ 9,305 $ 9,746
6/30/94 $ 9,319 $ 9,242 $ 9,681
7/31/94 $ 9,640 $ 9,318 $ 9,760
8/31/94 $ 9,606 $ 9,241 $ 9,679
9/30/94 $ 9,340 $ 9,225 $ 9,663
10/31/94 $ 9,307 $ 9,198 $ 9,635
11/30/94 $ 9,343 $ 8,990 $ 9,416
12/31/94 $ 9,475 $ 9,210 $ 9,647
1/31/95 $ 9,708 $ 9,294 $ 9,736
2/28/95 $ 10,023 $ 9,582 $ 10,037
3/31/95 $ 10,131 $ 9,659 $ 10,118
4/30/95 $ 10,327 $ 9,810 $ 10,275
5/31/95 $ 10,970 $ 10,116 $ 10,596
6/30/95 $ 11,086 $ 10,251 $ 10,738
7/31/95 $ 10,978 $ 10,285 $ 10,773
8/31/95 $ 11,224 $ 10,409 $ 10,903
9/30/95 $ 11,406 $ 10,663 $ 11,169
10/31/95 $ 11,579 $ 10,897 $ 11,415
11/30/95 $ 11,848 $ 11,112 $ 11,639
12/31/95 $ 12,120 $ 11,284 $ 11,820
1/31/96 $ 12,140 $ 11,392 $ 11,933
2/29/96 $ 11,692 $ 11,088 $ 11,615
3/31/96 $ 11,566 $ 11,012 $ 11,535
4/30/96 $ 11,419 $ 10,853 $ 11,369
5/31/96 $ 11,396 $ 10,834 $ 11,348
6/30/96 $ 11,613 $ 10,919 $ 11,438
7/31/96 $ 11,623 $ 10,946 $ 11,466
8/31/96 $ 11,532 $ 10,944 $ 11,464
9/30/96 $ 11,856 $ 11,166 $ 11,696
10/31/96 $ 12,294 $ 11,392 $ 11,933
11/30/96 $ 12,652 $ 11,685 $ 12,240
12/31/96 $ 12,389 $ 11,562 $ 12,111
1/31/97 $ 12,349 $ 11,551 $ 12,099
2/28/97 $ 12,430 $ 11,602 $ 12,153
3/31/97 $ 12,137 $ 11,433 $ 11,976
4/30/97 $ 12,359 $ 11,610 $ 12,162
5/31/97 $ 12,526 $ 11,727 $ 12,284
6/30/97 $ 12,772 $ 11,991 $ 12,560
7/31/97 $ 13,461 $ 12,526 $ 13,121
8/31/97 $ 13,129 $ 12,299 $ 12,883
9/30/97 $ 13,437 $ 12,560 $ 13,156
10/31/97 $ 13,686 $ 12,864 $ 13,475
11/30/97 $ 13,841 $ 12,963 $ 13,578
12/31/97 $ 14,057 $ 13,159 $ 13,784
1/31/98 $ 14,192 $ 13,495 $ 14,136
2/28/98 $ 14,179 $ 13,439 $ 14,077
3/31/98 $ 14,236 $ 13,478 $ 14,118
4/30/98 $ 14,340 $ 13,533 $ 14,175
5/31/98 $ 14,587 $ 13,718 $ 14,369
6/30/98 $ 14,740 $ 13,974 $ 14,638
7/31/98 $ 14,642 $ 13,975 $ 14,639
8/31/98 $ 14,655 $ 14,366 $ 15,048
9/30/98 $ 15,187 $ 14,913 $ 15,564
10/31/98 $ 14,776 $ 14,691 $ 15,383
11/30/98 $ 15,318 $ 14,736 $ 15,430
12/31/98 $ 15,327 $ 14,730 $ 15,424
1/31/99 $ 15,528 $ 14,845 $ 15,544
2/28/99 $ 14,981 $ 14,450 $ 15,131
3/31/99 $ 15,026 $ 14,522 $ 15,206
4/30/99 $ 15,044 $ 14,599 $ 15,287
5/31/99 $ 14,779 $ 14,381 $ 15,059
6/30/99 $ 14,583 $ 14,401 $ 15,080
7/31/99 $ 14,440 $ 14,436 $ 15,116
8/31/99 $ 14,357 $ 14,374 $ 15,051
9/30/99 $ 14,509 $ 14,559 $ 15,245
10/31/99 $ 14,599 $ 14,536 $ 15,221
11/30/99 $ 14,574 $ 14,490 $ 15,172
12/31/99 $ 14,441 $ 14,381 $ 15,059
1/31/2000 $ 14,413 $ 14,532 $ 15,217
2/29/2000 $ 14,583 $ 14,891 $ 15,592
3/31/2000 $ 14,709 $ 15,355 $ 16,079
4/30/2000 $ 14,478 $ 15,202 $ 15,918
5/31/2000 $ 14,313 $ 15,071 $ 15,781
6/30/2000 $ 14,821 $ 15,660 $ 16,398
7/31/2000 $ 15,106 $ 16,024 $ 16,779
8/31/2000 $ 15,310 $ 16,371 $ 17,143
9/30/2000 $ 15,222 $ 16,349 $ 17,119
10/31/2000 $ 15,240 $ 16,630 $ 17,413
11/30/2000 $ 15,479 $ 17,082 $ 17,887
12/31/2000 $ 15,771 $ 17,666 $ 18,498
1/31/2001 $ 16,457 $ 18,052 $ 18,903
2/28/2001 $ 16,552 $ 18,329 $ 19,193
3/31/2001 $ 16,562 $ 18,489 $ 19,360
4/30/2001 $ 16,424 $ 18,310 $ 19,173
5/31/2001 $ 16,649 $ 18,507 $ 19,379
6/30/2001 $ 16,764 $ 18,780 $ 19,665
7/31/2001 $ 17,339 $ 19,313 $ 20,223
8/31/2001 $ 17,673 $ 19,703 $ 20,632
9/30/2001 $ 17,242 $ 19,975 $ 20,916
10/31/2001 $ 18,049 $ 20,026 $ 20,970
11/30/2001 $ 17,838 $ 19,644 $ 20,570
12/31/2001 $ 17,689 $ 19,503 $ 20,422
1/31/2002 $ 17,960 $ 19,831 $ 20,765
2/28/2002 $ 18,096 $ 20,122 $ 21,070
3/31/2002 $ 17,585 $ 19,670 $ 20,597
4/30/2002 $ 17,830 $ 20,336 $ 21,294
5/31/2002 $ 18,045 $ 20,594 $ 21,565
6/30/2002 $ 17,940 $ 21,050 $ 22,042
7/31/2002 $ 17,707 $ 21,702 $ 22,725
8/31/2002 $ 18,565 $ 22,331 $ 23,383
9/30/2002 $ 18,929 $ 23,050 $ 24,136
10/31/2002 $ 18,485 $ 22,767 $ 23,840
11/30/2002 $ 19,022 $ 22,647 $ 23,714
12/31/2002 $ 19,798 $ 23,273 $ 24,369
1/31/2003 $ 19,894 $ 23,305 $ 24,403
2/28/2003 $ 20,449 $ 23,791 $ 24,912
3/31/2003 $ 20,372 $ 23,833 $ 24,956
4/30/2003 $ 21,080 $ 24,058 $ 25,192
5/31/2003 $ 22,165 $ 24,890 $ 26,062
6/30/2003 $ 21,897 $ 24,903 $ 26,076
7/31/2003 $ 20,116 $ 23,782 $ 24,903
8/31/2003 $ 20,603 $ 24,013 $ 25,144
9/30/2003 $ 21,681 $ 24,899 $ 26,073
10/31/2003 $ 21,329 $ 24,636 $ 25,797
11/30/2003 $ 21,535 $ 24,846 $ 26,017
12/31/2003 $ 21,862 $ 25,057 $ 26,238
1/31/2004 $ 22,229 $ 25,378 $ 26,574
2/28/2004 $ 22,617 $ 25,810 $ 27,026
3/31/2004 $ 22,896 $ 26,081 $ 27,309
4/30/2004 $ 21,736 $ 25,095 $ 26,277
5/31/2004 $ 21,534 $ 24,979 $ 26,156
6/30/2004 $ 21,667 $ 25,092 $ 26,274
7/31/2004 $ 22,102 $ 25,390 $ 26,587
8/31/2004 $ 22,949 $ 26,063 $ 27,291
9/30/2004 $ 23,224 $ 26,170 $ 27,403
10/31/2004 $ 23,610 $ 26,479 $ 27,726
11/30/2004 $ 23,277 $ 26,190 $ 27,424
</Table>
<Table>
<Caption>
AVERAGE ANNUAL
TOTAL RETURN SINCE
ONE FIVE TEN COMMENCEMENT OF OPERATIONS
YEAR YEARS YEARS DECEMBER 1, 1993
Lebenthal Taxable
Municipal Bond Fund:
with sales load 0.67% 8.33% 8.66% 6.87%
without sales load 5.41% 9.33% 9.16% 7.32%
Lehman Index 8.40% 9.85% 9.59% 7.96%
</Table>
Past performance is not predictive of future performance. The performance
information and graph do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares.
<Page>
UNDERSTANDING YOUR FUND'S EXPENSES
SHAREHOLDER EXPENSE EXAMPLE
As a mutual fund shareholder you incur two types of costs: (1) TRANSACTION
COSTS, including sales charges (loads) on purchase payments and redemption fees
and (2) ONGOING COSTS, including management fees, distribution (12b-1) fees,
shareholder services fees and other Fund expenses. These costs are described in
more detail in the Fund's prospectus. The examples below are intended to help
you understand your ongoing costs of investing in the Funds and help you compare
these with the ongoing costs of investing in other mutual funds
ACTUAL EXPENSES
The first line in the table for each Class of shares shows the ACTUAL account
values and ACTUAL Fund expenses you would have paid on a $1,000 investment in
the Fund from June 1, 2004 through November 30, 2004. It also shows how much a
$1,000 investment would be worth at the close of the period, assuming ACTUAL
Fund returns and expenses. To estimate the expenses you paid over the period,
simply divide your account by $1,000 (for example $8,600 account value divided
by $1,000 = 8.6) and multiply the result by the number in the Expenses Paid
During Period column as shown below for your Fund and Class.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an ASSUMED rate of return of 5% per year before expenses, which is not
the Fund's actual return. Thus, you should NOT use the hypothetical account
values and expenses to estimate the actual ending account balance or your
expenses for the period. Rather, these figures are provided to enable you to
compare the ongoing costs of investing in the Fund and other funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), or redemption fees. Therefore, the second line of the table is
useful in comparing ongoing costs only, and will not help you determine the
relative TOTAL costs of owning different funds. In addition, if these
transaction costs were included, your costs would have been higher.
<Page>
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
6/1/04 11/30/04 6/1/04-11/30/04
--------------- --------------- ---------------
CLASS A
Actual $ 1,000.00 $ 1,037.20 $ 4.67
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,020.42 $ 4.63
CLASS B
Actual $ 1,000.00 $ 1,033.90 $ 7.88
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.25 $ 7.82
</Table>
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 0.92% AND 1.55%
FOR THE CLASS A AND CLASS B RESPECTIVELY, MULTIPLIED BY THE AVERAGE ACCOUNT
VALUE OVER THE PERIOD, MULTIPLIED BY 183/366 (TO REFLECT THE ONE-HALF YEAR
PERIOD)
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
6/1/04 11/30/04 6/1/04-11/30/04
--------------- --------------- ---------------
SINGLE CLASS
Actual $ 1,000.00 $ 1,054.20 $ 4.88
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,020.25 $ 4.80
</Table>
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 0.95% MULTIPLIED
BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 183/366 (TO
REFLECT THE ONE-HALF YEAR PERIOD)
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
6/1/04 11/30/04 6/1/04-11/30/04
--------------- --------------- ---------------
SINGLE CLASS
Actual $ 1,000.00 $ 1,048.40 $ 5.12
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,020.00 $ 5.05
</Table>
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 1.00% MULTIPLIED
BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 183/366 (TO
REFLECT THE ONE-HALF YEAR PERIOD)
<Page>
LEBENTHAL NEW YORK MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2004
<Table>
<Caption>
RATINGS (UNAUDITED)
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- -------- ---------
MUNICIPAL BONDS (87.76%)
$ 3,000,000 Battery Park City Authority-New York Revenue, Refunding-Series A, 5.00%,
due 11/01/24 $ 3,115,800 Aaa AAA
1,000,000 Chautauqua, New York Tobacco Asset Securitization Corporation, 6.75%,
due 07/01/40 1,018,000
880,000 East Williston, New York Union Free School District-Series A, 5.00%,
due 06/15/18 938,054 Aa2
4,000,000 Erie County, New York Tobacco Asset Securitization Corporation-Series A,
6.25%, due 07/15/40 3,832,200 Ba1 BBB
3,250,00 Essex County, New York IDA Civic Facility (Moses Ludington Nursing Home),
(FHA Insured), 6.375%, due 02/01/50 3,566,713 AAA
5,000,000 Long Island Power Authority-New York Electrical Systems Revenue-Series A
(MBIA Insured), 5.00%, due 09/01/27 5,071,150 Aaa AAA
5,000,000 Metropolitan Transportation Authority New York-Series A, (FGIC Insured),
5.00%, due 11/15/25 5,138,650 Aaa AAA
550,000 Metropolitan Transportation Authority New York-Series A, (FGIC Insured),
5.00%, due 11/15/31 555,456 Aaa AAA
1,000,000 Monroe County, New York IDA (Southview Towers Project), (SONYMA Insured),
Subject to AMT, 6.25%, due 02/01/31 1,082,500 Aa1
7,730,000 Monroe County, New York Tobacco Asset Securitization Corporation, 6.375%,
due 06/01/35 7,658,111 Ba1 BBB
5,425,000 Nassau County, New York Interim Finance Authority-Series A2,
(AMBAC Insured), 5.125%Prerefunded to 11/15/06, due 11/15/21 5,778,927 Aaa AAA
575,000 Nassau County, New York Interim Finance Authority-Series A2,
(AMBAC Insured), 5.125%, due 11/15/21 603,600 Aaa AAA
2,600,000 Nassau County, New York Interim Finance Authority-Series B,
(AMBAC Insured), 5.00%, due 11/15/18 2,775,916 Aaa AAA
1,000,000 New York City Housing Development Corporation
(Multifamily Housing)-Series E, (SONYMA Insured), 6.25%, due 05/01/36 1,079,350 Aa2 AA
1,000,000 New York City Industrial Development Agency
(Saint Francis College), 5.00%, due 10/01/34 997,470 A-
2,600,00 New York City Transitional Finance Authority, Future Tax Secured-Series B,
5.00%, due 08/01/23 2,692,300 Aa2 AA+
700,000 New York City Transitional Finance Authority, Future Tax Secured-Series C,
5.00%, due 08/01/24 718,333 Aa2 AA+
420,000 New York City Transitional Finance Authority-Series B, 5.50%, due 02/01/17 461,899 Aa2 AA+
425,000 New York City Transitional Finance Authority-Series C, 5.375%, due 02/01/18 461,622 Aa2 AA+
2,000,000 New York City Transitional Finance Authority-Series A, 5.375%, due 02/15/23 2,242,960 Aa2 AA+
575,000 New York City Transitional Finance Authority-Series C, 5.375% Prerefunded
to 02/01/11, due 02/01/18 649,664 Aa2 AA+
1,500,000 New York City Transitional Finance Authority-Series C, 5.50%Prerefunded
to 05/01/10, due 11/01/29 1,695,225 Aa2 AA+
</Table>
See Notes to Financial Statements.
<Page>
<Table>
<Caption>
RATINGS (UNAUDITED)
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- -------- ---------
MUNICIPAL BONDS (CONTINUED)
$ 2,300,000 New York Counties Tobacco Trust I, 6.50%, due 06/01/35 $ 2,300,598 Ba1 BBB
1,500,000 New York Counties Tobacco Trust I, 6.625%, due 06/01/42 1,510,200 Ba1 BBB
4,000,000 New York State Dormitory Authority (City University), (FGIC Insured), 5.25%,
due 07/01/18 4,332,000 Aaa AAA
2,795,000 New York State Dormitory Authority (City University), (FGIC Insured), 5.25%,
due 07/01/30 3,107,034 Aaa AAA
1,680,000 New York State Dormitory Authority (Columbia University)-Series B, 5.00%,
due 07/01/21 1,769,830 Aaa AAA
1,800,000 New York State Dormitory Authority (Columbia University)-Series B, 5.00%,
due 07/01/23 1,878,390 Aaa AAA
2,000,000 New York State Dormitory Authority (Court Facilities)-Series A, 5.375%,
due 05/15/23 2,124,840 A2 A
4,500,000 New York State Dormitory Authority (Court Facilities)-Series A, 5.50%,
due 05/15/20 4,859,550 A2 A
1,660,000 New York State Dormitory Authority (Fordham University), 5.00%, due 07/01/22 1,729,023 Aaa AAA
6,105,000 New York State Dormitory Authority (Highlands Living), (FHA Insured), 6.60%,
due 02/01/34 6,247,918 AA
2,150,000 New York State Dormitory Authority (Jewish Geriatric-Long Island),
(FHA Insured), 7.35%, due 08/01/29 2,200,998 AAA
2,250,000 New York State Dormitory Authority (Jewish Home of Central New York),
6.25%, due 07/01/25 2,361,375
1,815,000 New York State Dormitory Authority (Manhattan College), 5.50%, due 07/01/17 1,968,712 AA
2,400,000 New York State Dormitory Authority (Manhattan College), 5.50%, due 07/01/18 2,598,936 AA
2,285,000 New York State Dormitory Authority (Master Board of Cooperative Education
Program), (FSA Insured), 5.00%, due 08/15/23 2,379,393 Aaa AAA
2,500,000 New York State Dormitory Authority (New York State University), 5.125%,
due 05/15/31 2,803,150 Aaa AAA
1,205,000 New York State Dormitory Authority (New York University)-Series 1,
(AMBAC Insured), 5.50%, due 07/01/19 1,385,919 Aaa AAA
1,000,000 New York State Dormitory Authority (New York University)-Series 1,
(AMBAC Insured), 5.50%, due 07/01/22 1,144,290 Aaa AAA
1,000,000 New York State Dormitory Authority (Nursing Home-Menorah Campus),
(AMBAC/FHA Insured), 6.10%, due 02/01/37 1,081,930 AAA
250,000 New York State Dormitory Authority (Rochester University)-Series A, 5.25%,
due 07/01/23 264,860 A1 A+
200,000 New York State Dormitory Authority (Rochester University)-Series A, 5.25%,
due 07/01/24 211,088 A1 A+
4,400,000 New York State Dormitory Authority (Rockefeller University), 5.00%,
due 07/01/28 4,468,332 Aaa AAA
2,400,000 New York State Dormitory Authority (W.K. Nursing Home), (FHA Insured),
6.125%, due 02/01/36 2,568,600 AAA
</Table>
See Notes to Financial Statements.
<Page>
<Table>
<Caption>
RATINGS (UNAUDITED)
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- -------- ---------
MUNICIPAL BONDS (CONTINUED)
$ 715,000 New York State Dormitory Authority-Series B, (FHA Insured), 6.65%,
due 08/15/30 $ 832,403 Aa2 AAA
5,525,000 New York State Energy Research & Development Authority-Pollution Control
Revenue, (Niagra Mohawk Power Corporation) Project A, 5.15%, due 11/01/25 5,761,912 Aaa AAA
985,000 New York State Environmental Facilities Corporation, Personal Income
Tax-Series A, (FGIC Insured), 5.00%, due 01/01/23 1,021,415 Aaa AAA
1,810,000 New York State Housing Finance Agency (Housing Project Mortgage)-Series A,
(FSA Insured), 6.125%, due 11/01/20 1,903,541 Aaa AAA
500,000 New York State Power Authority-, Series A, 5.00%, due 11/15/19 527,850 Aa2 AA-
2,980,000 New York State Throughway Authority (General Revenue)-Series E, 5.00%,
due 01/01/25 3,036,084 Aa3 AA-
950,000 New York State Throughway Authority (Highway and Bridge),
Second Generation-Series B, (FSA Insured), 5.00%, due 04/01/17 1,013,954 Aaa AAA
1,535,000 New York State Throughway Authority (Highway and Bridge)-Series A,
(FGIC Insured), 5.50%, due 04/01/17 1,702,054 Aaa AAA
2,190,000 New York State Throughway Authority (Highway and Bridge)-Series C,
(FGIC Insured), 5.00%, due 04/01/20 2,298,098 Aaa AAA
225,000 New York State Urban Development Corporation, Personal Income
Tax Series C-1 (FGIC Insured), 5.50%, due 03/15/19 248,263 Aaa AAA
1,000,000 New York State Urban Development Corporation, Subordinated Lien
Corporation Purpose-Series A, 5.125%, due 07/01/20 1,056,970 A2 A
1,520,000 New York State Urban Development Corporation, Subordinated Lien
Corporation Purpose-Series A, 5.125%, due 07/01/21 1,599,298 A2 A
3,800,000 New York State Urban Development Corporation (Correctional Facilities),
(FSA Insured), 5.25%, due 01/01/30 4,236,506 Aaa AAA
1,965,000 New York, New York-Series D, (FSA Insured), 5.125%, due 08/01/18 2,110,056 Aaa AAA
500,000 New York, New York-Series G, 5.25%, due 08/01/15 542,755 A2 A
1,000,000 Niagara County, Tobacco Asset Securitization Corporation, 6.25%, due 05/15/40 959,480 Ba1
1,000,000 Port Authority New York & New Jersey, Consolidated-132ND Series, 5.00%,
due 09/01/25 1,025,020 A1 AA-
335,000 Red Hook, New York Central School District, Refunding, (FSA Insured),
5.125%, due 06/15/18 357,747 Aaa
1,000,000 Rensselaer, Tobacco Asset Securitization Corporation-Series A, 5.75%,
due 06/01/43 888,710 Ba1 BBB
1,000,000 Sales Tax Asset Receivable Corp., New York-Series A, (AMBAC Insured),
5.25%, due 10/15/27 1,055,950 Aaa AAA
2,400,000 Triborough, New York State Bridge & Tunnel Authority-, (MBIA Insured),
5.25%, due 11/15/23 2,548,920 Aaa AAA
1,750,000 Triborough, New York State Bridge & Tunnel Authority-Series A, 5.00%,
due 01/01/32 1,761,340 Aa3 AA-
</Table>
See Notes to Financial Statements.
<Page>
<Table>
<Caption>
RATINGS (UNAUDITED)
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- -------- ---------
MUNICIPAL BONDS (CONTINUED)
$ 2,000,000 Triborough, New York State Bridge & Tunnel Authority-Series B, 5.00%,
due 11/15/27 $ 2,026,160 Aa3 AA-
885,000 Westchester County, New York Health Care Corporation-Series B,
(County Guaranteed), 5.25%, due 11/01/17 958,499 Aaa AAA
-------------
TOTAL MUNICIPAL BONDS (COST $141,172,835) 146,903,851
-------------
<Caption>
SHARES
- ------------
CLOSED-END FUNDS (7.68%)
536,324 Muniholdings New York Insured Fund 7,390,545
296,890 Muniyield New York Insured Fund 3,803,161
10,000 Nuveen Insured New York Premium 152,500
100,000 Van Kampen Trust Investment Grade New York Municipals 1,509,000
-------------
TOTAL CLOSED-END FUNDS (COST $12,080,903) 12,855,206
-------------
<Caption>
FACE
AMOUNT
- ------------
COMMERCIAL PAPER (3.64%)
(COST $6,092,000)
$ 6,092,000 General Electric Capital Corporation, 1.97%, due 12/01/04 6,092,000
-------------
TOTAL INVESTMENTS (99.08%) (COST $159,345,738)+ 165,851,057
CASH AND OTHER ASSETS, NET OF LIABILITIES (0.92%) 1,545,086
-------------
NET ASSETS (100.00%) $ 167,396,143
=============
</Table>
+ Aggregate cost for federal income tax purposes is $159,488,455.
Aggregate unrealized appreciation and depreciation, based on cost for federal
income tax purposes, are $6,917,861 and $555,259 respectively, resulting in
net unrealized appreciation of $6,362,602.
KEY:
AMBAC = Ambac Indemnity Corporation
AMT = Alternative Minimum Tax
BOCES = Board of Cooperative Education Services
FGIC = Financial Guaranty Insurance Corporation
FHA = Federal Housing Administration
FSA = Financial Security Assurance, Inc.
IDA = Industrial Development Agency
MBIA = Municipal Bond Insurance Association
SONYMA = State of New York Mortgage Agency
[CHART]
PORTFOLIO COMPOSITION (% OF PORTFOLIO
MARKET VALUE) AS OF 11/30/04
<Table>
Municipal Bonds 88.58%
Closed-End Funds 7.75%
Commercial Paper 3.67%
</Table>
See Notes to Financial Statements.
<Page>
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2004
<Table>
<Caption>
RATINGS (UNAUDITED)
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- -------- ---------
MUNICIPAL BONDS (87.93%)
$ 415,000 Branchburg, New Jersey Board of Education, (FGIC Insured), 5.00%, due
07/15/21 $ 433,032 Aaa AAA
350,000 Delaware River Port Authority, Port District Project-Series A (FSA Insured),
Refunding Port District Project Series A, 5.20%, due 01/01/27 363,205 Aaa AAA
70,000 Essex County, New Jersey Import Authority Orange School District-Series A,
(MBIA Insured), Refunding Orange School District Series A, 6.95%, due 07/01/14 73,387 Aaa AAA
500,000 Freehold Township, New Jersey Board of Education (MBIA Insured), 5.00%, due
02/15/22 518,310 Aaa AAA
250,000 Gloucester County, New Jersey Improvement Authority-Series A, (MBIA Insured),
5.00%, due 07/15/23 260,110 Aaa AAA
100,000 Irvington, New Jersey Housing & Mortgage Finance Authority, (FHA Insured),
6.50%, due 02/01/24 101,740 AAA
650,000 Mercer County, New Jersey Improvement Authority, Government Leasing
Program (AMBAC County Guaranteed), 5.00%, due 12/15/18 693,309 Aaa AAA
200,000 Middlesex County, New Jersey Import Authority, 5.00%, due 08/01/22 207,210 Aaa AAA
115,000 Morris County, New Jersey Improvement Authority, School Improvement,
(County Guaranteed), 5.00%, due 08/15/16 123,642 Aaa
200,000 New Jersey Economic Development Authority, Cigarette Tax, 5.75%, due
06/15/29 204,264 Baa2 BBB
100,000 New Jersey Economic Development Authority, New Jersey American Water Co.
Project A, (FGIC Insured), Subject to AMT, 6.875%, due 11/01/34 102,364 Aaa AAA
500,000 New Jersey Economic Development Authority, School Facilities Construction
Series A, 5.00%, due 06/15/21 520,055 Aaa AAA
50,000 New Jersey Economic Development Authority, Economic Development Revenue,
Heath VLG-96 Project, (LOC-First Union National Bank), 6.00%, due 05/01/16,* 51,662 A+
25,000 New Jersey Economic Development Authority, Economic Development Revenue,
Prerefunded-Heath VLJ-96 Project, (LOC-First Union National Bank), 6.00%, due
05/01/16,* 26,509 A+
150,000 New Jersey Economic Development Authority, Economic Development Revenue,
Refunding-Burlington Coat Factory, (LOC-First Union National Bank), 6.125%, due
09/01/10 155,085 Aa3
100,000 New Jersey Economic Development Authority, Pollution Control Revenue, Public
Service Electric & Gas Company Project, (MBIA Insured), Subject to AMT, 6.40%,
due 05/01/32 102,835 Aaa AAA
125,000 New Jersey Health Care Facilities Financing Authority, General Hospital Center at
Passaic, (FSA Insured), 6.75%, due 07/01/19 157,420 Aaa AAA
150,000 New Jersey Health Care Facilities Financing Authority, Robert Wood Johnson
University Hospital, 5.75%, due 07/01/25 160,770 A2 A
150,000 New Jersey Health Care Facilities Financing Authority, Saint Joseph's Hospital &
Medical Center, (Connie Lee Insured), 6.00%, due 07/01/26 160,579 AAA
500,000 New Jersey State, Variable Purpose, (FGIC Insured), 5.00%, due 08/01/22 520,310 Aaa AAA
</Table>
See Notes to Financial Statements.
<Page>
<Table>
<Caption>
RATINGS (UNAUDITED)
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- -------- ---------
MUNICIPAL BONDS (CONTINUED)
$ 250,000 New Jersey State Educational Facilities Authority, Kean University-Series D,
(FGIC Insured), 5.25%, due 07/01/23 $ 265,307 Aaa AAA
500,000 New Jersey State Educational Facilities Authority, Montclair State
University-Series F, 5.00%, due 07/01/31 506,695 Aaa AAA
275,000 New Jersey State Educational Facilities Authority, Refunding-Princeton
University-Series D, 5.00%, due 07/01/26 284,086 Aaa AAA
100,000 New Jersey State Educational Facilities Authority, Rowan University-Series C,
(FGIC Insured), 5.00%, due 07/01/31 101,509 Aaa AAA
30,000 New Jersey State Higher Education Assistance Authority, Student Loan-Series A,
(AMBAC Insured), Subject to AMT, 5.30%, due 06/01/17 31,106 Aaa AAA
100,000 New Jersey State Housing & Mortgage Finance Agency, MHRB-Series A,
(AMBAC/FHA Insured), 6.25%, due 05/01/28 103,329 Aaa AAA
300,000 New Jersey State Housing & Mortgage Finance Agency, MHRB-Series B,
(FSA Insured), 6.15%, due 11/01/20 320,157 Aaa AAA
275,000 New Jersey State Housing & Mortgage Finance Agency, Refunding Series A,
6.05%, due 11/01/20 282,045 Aaa AAA
500,000 New Jersey State Transport Trust Fund Authority, Transport Systems-Series B,
5.00%, due 12/15/21 518,295 Aaa AAA
325,000 New Jersey State Transport Trust Fund Authority, Transport Systems-Series C,
5.50%, due 06/15/24 350,220 A1 A+
675,000 New Jersey State Turnpike Authority, Highway Improvement, Refunding-Series A,
(FGIC Insured), 5.00%, due 01/01/19 714,562 Aaa AAA
300,000 New Jersey State-Series H, Refunding Series H, 5.25%, due 07/01/19 334,434 Aa3 AA-
140,000 Newark, New Jersey Housing Finance Corporation Mortgage, Refunding-HUD
Section 8-Manor Apartments-Series A, (FHA Insured), 7.50%, due 02/15/24 143,434 AAA
400,000 Old Bridge, New Jersey Board of Education, (MBIA Insured), 5.00%, due 07/15/30 406,968 Aaa AAA
70,000 Puerto Rico Housing Bank & Finance Agency, Single Family Mortgage,
Affordable Housing Mortgage-Portfolio I, (GNMA/FNMA/FHLMC Insured),
Subject to AMT, 6.25%, due 04/01/29 71,803 Aaa AAA
600,000 Tobacco Settlement Financing Corporation, New Jersey, 6.125%, due 06/01/42 550,566 Baa3 BBB
500,000 Tobacco Settlement Financing Corporation, New Jersey, 7.00%, due 06/01/41 507,985 Baa3 BBB
500,000 Union County, New Jersey Improvement Authority, Madison Redevelopment
Project, (FSA insured), 5.00%, due 03/01/25 514,955 Aa1
250,000 University Medicine & Dentistry, New Jersey, (AMBAC Insured), 5.00%, due
04/15/22 260,935 Aaa AAA
250,000 University Medicine & Dentistry, New Jersey-Series A, 5.125%, due 12/01/22 262,978 Aaa AAA
100,000 University Puerto Rico Revenue-Series O, (MBIA Insured), 5.375%, due 06/01/30 102,248 Aaa AAA
250,000 Willingboro New Jersey Utilities Authority-Series H, 5.25%, due 01/01/21 268,168 Aaa
-------------
TOTAL MUNICIPAL BONDS (COST $11,515,317) 11,837,583
-------------
</Table>
See Notes to Financial Statements.
<Page>
<Table>
<Caption>
VALUE
SHARES (NOTE 1)
- ------------ -------------
CLOSED-END FUNDS (7.42%)
38,700 Muniholdings New Jersey Insured Fund $ 566,568
23,400 Muniyield New Jersey Fund Incorporated 344,682
5,800 Muniyield New Jersey Insured Fund 87,348
-------------
TOTAL CLOSED-END FUNDS (COST $885,618) 998,598
-------------
<Caption>
FACE
AMOUNT
- -----------
COMMERCIAL PAPER (3.39%)
(COST $457,000)
$ 457,000 General Electric Capital Corporation, 1.97%, due 12/01/04 457,000
-------------
TOTAL INVESTMENTS (98.74%) (COST $12,857,935)+ 13,293,181
CASH AND OTHER ASSETS, NET OF LIABILITIES (1.26%) 169,682
-------------
NET ASSETS (100.00%) $ 13,462,863
=============
</Table>
+ Aggregate cost for federal income tax purposes is $12,859,968.
Aggregate unrealized appreciation and depreciation, based on cost for federal
income tax purposes, are $476,104 and $42,891 respectively, resulting in net
unrealized appreciation of $433,213.
* Restricted security subject to restrictions on resale under federal
securities laws. Security represents 0.20% of net assets.
KEY
AMBAC = Ambac Indemnity Corporation
AMT = Alternative Minimum Tax
FGIC = Financial Guaranty Insurance Corporation
FHA = Federal Housing Administration
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
FSA = Financial Security Assurance, Inc.
GNMA = Government National Mortgage Association
HUD = Department of Housing and Urban Development
LOC = Letter of Credit
MBIA = Municipal Bond Insurance Association
MHRB = Multi-family Housing Revenue Bond
[CHART]
PORTFOLIO COMPOSITION (% OF MARKET VALUE)
AS OF 11/30/04
<Table>
Municipal Bonds 89.05%
Closed-End Funds 7.51%
Commercial Paper 3.44%
</Table>
See Notes to Financial Statements.
<Page>
LEBENTHAL TAXABLE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2004
<Table>
<Caption>
RATINGS (UNAUDITED)
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- -------- ---------
MUNICIPAL BONDS (90.42%)
$ 350,000 Allen County, Indiana War Memorial Coliseum Additions Building Corporation,
(AMBAC Insured), 6.875%, due 11/01/25 $ 375,802 Aaa
600,000 Atlanta & Fulton County, Georgia Recreational Authority-Downtown Area Project,
(FSA Insured), 7.00%, due 12/01/28 654,144 Aaa AAA
300,000 Bridgeport, Connecticut Taxable Pension Bonds, General Obligation,
(FGIC Insured), 7.64%, due 01/15/30 376,137 Aaa AAA
600,000 Broward County, Florida Airport Systems Revenue, Taxable Series J2, 6.90%, due
10/01/21 691,782 Aaa AAA
125,000 California State University Revenue, Sacramento Auxiliary-Series B,
(MBIA Insured), 6.45%, due 10/01/17 134,110 Aaa AAA
150,000 Connecticut State Health & Educational Facilities Authority, Maefair Health Care,
9.20%, due 11/01/24 207,381 A1 AA
150,000 Connecticut State Health & Educational Facilities Authority, Shady Knoll Center,
8.90%, due 11/01/24 203,245 A1 AA
250,000 Cuyahoga County, Ohio Economic Development, Gateway Arena Project-Series A,
8.625%, due 06/01/22 321,350 Aa2
600,000 Dane County, Wisconsin, Taxable Series C, General Obligation, 5.30%, due
12/01/16 600,000 Aaa
225,000 Detroit, Michigan Downtown Development Authority Tax Increment Revenue,
Taxable-Development Area No.1 Project-B, (MBIA Insured), 6.68%, due 07/01/28 257,200 Aaa AAA
100,000 Florida Housing Finance Agency, Mariner Club-K-2, (AMBAC Insured), 8.25%, due
09/01/15 108,286 Aaa AAA
250,000 Fresno County, California Pension Obligation, (FGIC Insured), 6.67%, due
08/15/18 283,778 Aaa AAA
500,000 Glendale, Arizona Municipal Property Corporate Excise Tax-Series B,
(AMBAC Insured), 5.58%, due 07/01/32 498,295 Aaa AAA
425,000 Harrisburg, Pennsylvania, Resource Recovery Facilities Authority-Series B,
8.05%, due 09/01/25 510,382 Aaa AAA
150,000 Idaho Housing Agency, (HUD Section 8 Insured), 8.50%, due 07/01/09 153,405 A2
250,000 Illinois State, General Obligation, 4.95%, due 06/01/23 237,898 Aa3 AA
110,000 Illinois State, Taxable, Pension Funding, (XLCA/ICR Insured), 5.10%, due
06/01/33 104,502 Aaa AAA
250,000 Industry, California, General Obligation, (MBIA Insured), 6.70%, due 07/01/21 263,410 Aaa AAA
750,000 Jersey City, New Jersey Municipal Utilities Authority-Series B, (MBIA Insured),
5.47%, due 05/15/27 751,732 Aaa AAA
265,000 Kern County, California Pension Obligation, (MBIA Insured), 7.26%, due 08/15/14 310,024 Aaa AAA
205,000 Kutztown, Pennsylvania Area School District-Series A, (FGIC Insured), 6.65%, due
11/15/31 210,027 Aaa AAA
300,000 Lafayette, Louisiana Taxable Refunding, (AMBAC Insured), 5.70%, due 05/01/22 301,503 Aaa AAA
400,000 Los Angeles, California Certificate Participation, Real Property-AK, 7.25%, due
04/01/29 405,808 A2
</Table>
See Notes to Financial Statements.
<Page>
<Table>
<Caption>
RATINGS (UNAUDITED)
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- -------- ---------
MUNICIPAL BONDS (CONTINUED)
$ 200,000 Los Angeles, California Community Redevelopment Agency, Monterey-Series D,
(FSA Insured), 6.60%, due 09/01/20 $ 215,420 Aaa AAA
100,000 Maryland State Transportation Authority Limited, Baltimore-Washington
International, (MBIA Insured), 6.48%, due 07/01/22 108,293 Aaa
500,000 Miami Dade County, Florida Educational Facilities Authority, Taxable-University
of Miami-Series B, 5.36%, due 04/01/24 500,475 Aaa AAA
200,000 Michigan State Housing Development Authority-Series A, (AMBAC Insured), 8.30%,
due 11/01/15 238,330 Aaa AAA
400,000 Middlesex County, New Jersey General Improvement-Series B, 6.20%, due
06/15/16 419,620 Aa1 AAA
10,000 Minnesota State Housing Finance Agency, Single Family Mortgage-Series G, 8.05%,
due 01/01/12 10,036 Aa1 AA+
250,000 New Jersey Economic Development Authority, State Pension Funding,
Revenue-Series B, 0.00%*, due 02/15/21 98,575 Aaa AAA
500,000 New Jersey Economic Development Authority-Series B, (AMBAC Insured), 5.80%,
due 04/01/25 509,565 Aaa AAA
250,000 New Jersey State Turnpike Authority Turnpike Revenue-Series B,
(AMBAC Insured), 4.252%, due 01/01/16 239,290 Aaa AAA
580,000 New York State Dormitory Authority Revenues, Highland Hospital-Series B,
(MBIA/FHA Insured), 7.45%, due 08/01/35 625,629 Aaa AAA
300,000 New York State Housing Finance Agency, Multi-family Housing-Series B,
(FHA Insured), 8.25%, due 05/15/35 311,358 Aa1 AAA
500,000 Ohio State, Developmental Assistance, (MBIA Insured), 5.32%, due 10/01/18 488,955 Aaa AAA
585,000 Ohio State, Taxable-Developmental Assistance-Series A, (MBIA Insured), 5.61%,
due 10/01/22 588,329 Aaa AAA
300,000 Oregon School Boards Association, Taxable-Pension-Series B, (FGIC Insured),
5.55%, due 06/30/28 304,152 Aaa AAA
500,000 Oregon State, General Obligation, Taxable-Series B, 5.762%, due 06/01/23 521,955 Aa3 AA-
100,000 Pittsburgh, Pennsylvania Urban Redevelopment Authority, (FSA Insured),
9.07%, due 09/01/14 106,370 Aaa AAA
600,000 Richland Lexington, South Carolina Airport District, Columbia Metropolitan
Airport-Series B, (FSA Insured), 6.59%, due 01/01/17 667,566 Aaa AAA
300,000 Rosemont, Illinois Tax Increment Project 5, (FGIC Insured), 6.95%, due 12/01/20 327,819 Aaa AAA
225,000 Sacramento County, California-Series A, (MBIA Insured), 7.68%, due 08/15/21 281,070 Aaa AAA
120,000 Sales Tax Asset Receivable Asset Receivable Corp., NewYork-Series B,
(FGIC Insured), 4.81%, due 10/15/16 116,713 Aaa AAA
130,000 San Diego State University Foundation-Series B, (MBIA Insured), 6.70%,
due 03/01/22 138,174 Aaa AAA
200,000 Tampa, Florida Sports Authority, Hillsboro Arena Project, (MBIA Insured),
8.07%, due 10/01/26 206,660 Aaa AAA
</Table>
See Notes to Financial Statements.
<Page>
<Table>
<Caption>
RATINGS (UNAUDITED)
--------------------
FACE VALUE STANDARD
AMOUNT (NOTE 1) MOODY'S & POOR'S
- ------------ ------------- -------- ---------
MUNICIPAL BONDS (CONTINUED)
$ 290,000 Texas State, Department of Housing and Community Affairs-Series C-1,
(MBIA Insured), 7.76%, due 09/01/17 $ 296,107 Aaa AAA
321,272 Tobacco Settlement Funding Corporation, Louisiana Revenue-Series 2001A,
6.36%, due 05/15/25 312,357 Baa3 BBB
500,000 University of New Mexico, Certificates of Participation, 8.00%, due 06/30/25 556,775 Aaa AAA
500,000 West Haven, Connecticut, (MBIA Insured), 5.84%, due 03/15/22 511,995 Aaa AAA
-------------
TOTAL MUNICIPAL BONDS (COST $15,596,926) 16,661,789
-------------
<Caption>
SHARES
- ------------
CLOSED-END FUNDS (5.04%)
46,000 Blackrock Income Trust Incorporated 332,580
58,000 Hyperion Total Return Fund Incorporated 596,820
-------------
TOTAL CLOSED-END FUNDS (COST $778,001) 929,400
-------------
<Caption>
FACE
AMOUNT
- ------------
COMMERCIAL PAPER (3.11%)
(COST $573,000)
$ 573,000 General Electric Capital Corporation, 1.97%, due 12/01/04 573,000
-------------
TOTAL INVESTMENTS (98.57%) (COST $16,947,927)+ 18,164,189
CASH AND OTHER ASSETS, NET OF LIABILITIES (1.43%) 262,660
-------------
NET ASSETS (100.00%) $ 18,426,849
=============
</Table>
+ Aggregate cost for federal income tax purposes is $16,952,390.
Aggregate unrealized appreciation and depreciation, based on cost for federal
income tax purposes, are $1,274,627 and $62,828 respectively, resulting in
net unrealized appreciation of $1,211,799.
* Zero Coupon Bond
KEY
AMBAC = Ambac Indemnity Corporation
FGIC = Financial Guaranty Insurance Corporation
FHA = Federal Housing Administration
FSA = Financial Security Assurance, Inc.
HUD = Department of Housing and Urban Development
ICR = Insured Custodial Receipts
MBIA = Municipal Bond Insurance Association
XLCA = XL Capital Assurance
[CHART]
PORTFOLIO COMPOSITION (% OF MARKET VALUE)
AS OF 11/30/04
<Table>
Municipal Bonds 91.73%
Closed-End Funds 5.12%
Commercial Paper 3.15%
</Table>
See Notes to Financial Statements.
<Page>
LEBENTHAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
NOVEMBER 30, 2004
<Table>
<Caption>
LEBENTHAL NEW YORK LEBENTHAL NEW JERSEY LEBENTHAL TAXABLE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
--------------------- --------------------- --------------------
ASSETS
Investment in securities, at value (cost $159,345,738
$12,857,935 and $16,947,927) $ 165,851,057 $ 13,293,181 $ 18,164,189
Cash 388 395 484
Receivables:
Capital shares sold 43,118 -- 49,891
Interest and dividends 2,168,506 225,731 288,665
Due from Manager -- 651 10,356
Prepaid Expenses 13,498 1,118 1,454
--------------------- --------------------- --------------------
Total assets 168,076,567 13,521,076 18,515,039
--------------------- --------------------- --------------------
LIABILITIES
Payables:
Capital shares redeemed 76,584 -- 839
Dividends declared 315,128 26,873 51,522
Distribution fee payable (Note 3) 80,255 -- --
Management fee payable (Note 2) 30,866 2,801 3,769
Administration fee payable 30,572 6,576 6,159
Accrued expenses and other liabilities 147,019 21,963 25,901
--------------------- --------------------- --------------------
Total liabilities 680,424 58,213 88,190
--------------------- --------------------- --------------------
NET ASSETS $ 167,396,143 $ 13,462,863 $ 18,426,849
===================== ===================== ====================
NET ASSETS CONSIST OF:
Par value $ 20,272 $ 1,867 $ 2,346
Paid in capital 161,276,103 12,974,581 17,227,933
Undistributed(Accumulated) net investment income/(loss) (315,128) 17 (47,272)
Accumulated net realized gain/(loss) on investments (90,423) 51,152 27,580
Unrealized appreciation on investments -- net 6,505,319 435,246 1,216,262
--------------------- --------------------- --------------------
Total net assets $ 167,396,143 $ 13,462,863 $ 18,426,849
===================== ===================== ====================
CLASS A
Net Assets $ 159,633,518 $ 13,462,863 $ 18,426,849
Shares outstanding (Note 4) 19,333,490 1,867,431 2,346,443
Net asset value and redemption price per share $ 8.26 $ 7.21 $ 7.85
Maximum offering price per share* $ 8.65 $ 7.55 $ 8.22
CLASS B
Net Assets $ 7,762,625 $ -- $ --
Shares outstanding (Note 4) 938,538 -- --
Net asset value, and redemption price per share** $ 8.27 $ -- $ --
</Table>
* The sales charge for Class A shares is 4.5% of the offering price on a single
sale of less than $50,000, reduced on sales of $50,000 or more and certain
other sales.
** Class B shares are sold without an initial sales charge, but are subject to a
5% contingent deferred sales charge if shares are redeemed within 11 months,
reduced on shares held over 12 months.
See Notes to Financial Statements.
<Page>
LEBENTHAL FUNDS, INC.
STATEMENTS OF OPERATIONS
YEAR ENDED NOVEMBER 30, 2004
<Table>
<Caption>
LEBENTHAL NEW YORK LEBENTHAL NEW JERSEY LEBENTHAL TAXABLE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
--------------------- --------------------- --------------------
INVESTMENT INCOME
Income:
Interest $ 8,262,052 $ 645,335 $ 1,109,536
Dividends 867,592 64,348 86,215
--------------------- --------------------- --------------------
Total income 9,129,644 709,683 1,195,751
--------------------- --------------------- --------------------
EXPENSES:
Management fee (Note 2) 396,903 35,580 48,606
Distribution fee:
Class A (Note 3) 427,869 35,580 48,606
Class B (Note 3) 85,522 -- --
Shareholder servicing fees:
Class A 73,997 31,510 34,713
Class B 31,684 -- --
Administration fee 151,140 15,738 19,802
Printing 32,255 2,337 2,986
Custodian fee 24,694 5,852 5,854
Legal and compliance fees 241,404 18,874 28,488
Auditing and accounting fees 82,480 36,573 37,852
Directors' fees 21,719 1,716 2,287
Registration fees:
Class A 11,782 4,614 14,612
Class B 5,146 -- --
Other 76,811 7,325 9,645
--------------------- --------------------- --------------------
Total expenses 1,663,406 195,699 253,451
Less: Reimbursment of expenses by Manager (Note 2) -- (24,838) (10,356)
Fees waived by Distributor (Note 3) (38,452) (35,580) (48,606)
Fees paid indirectly (Note 1) (62) (83) (70)
--------------------- --------------------- --------------------
Net expenses 1,624,892 135,198 194,419
--------------------- --------------------- --------------------
Net investment income 7,504,752 574,485 1,001,332
--------------------- --------------------- --------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain/(loss) on investments 105,464 121,609 56,101
Net realized gain from underlying funds' distributions 40,160 -- --
Change in unrealized appreciation/depreciation of
investments (2,509,956) (172,753) (45,236)
--------------------- --------------------- --------------------
Net realized and unrealized gain on investments (2,364,332) (51,144) 10,865
--------------------- --------------------- --------------------
Increase in net assets from operations $ 5,140,420 $ 523,341 $ 1,012,197
===================== ===================== ====================
</Table>
See Notes to Financial Statements.
<Page>
LEBENTHAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED NOVEMBER 30, 2004 AND 2003
<Table>
<Caption>
LEBENTHAL NEW YORK MUNICIPAL LEBENTHAL NEW JERSEY MUNICIPAL
BOND FUND BOND FUND
--------------------------------------- --------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
NOVEMBER 30, 2004 NOVEMBER 30, 2003 NOVEMBER 30, 2004 NOVEMBER 30, 2003
----------------- ------------------ ----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 7,504,752 $ 7,712,422 $ 574,485 $ 587,150
Net realized gain on investments 145,624 1,188,722 121,609 279,172
Change in unrealized appreciation/
(depreciation) of investments (2,509,956) 981,555 (172,753) (3,559)
----------------- ------------------ ----------------- -----------------
Increase in net assets from
operations 5,140,420 9,882,699 523,341 862,763
Dividends from net investment
income:
Class A shares (7,197,169)* (7,390,991)** (574,168)* (586,485)**
Class B shares (301,409)* (314,903)** -- --
Distributions from net realized
capital gains
Class A Shares (1,104,110) (584,822) -- --
Class B Shares (58,481) (27,890) -- --
Capital share transactions (Note 4) (15,564,404) 12,017,267 (1,419,237) 1,578,917
----------------- ------------------ ----------------- -----------------
Total increase/(decrease) (19,085,153) 13,581,360 (1,470,064) 1,855,195
Net assets:
Beginning of period 186,481,296 172,899,936 14,932,927 13,077,732
----------------- ------------------ ----------------- -----------------
End of period (1) $ 167,396,143 $ 186,481,296 $ 13,462,863 $ 14,932,927
================= ================== ================= =================
(1) Includes Undistributed/
(Accumulated) Net Investment
Income/(Loss) $ (315,128) $ (416,145) $ 17 $ 17
================= ================== ================= =================
</Table>
(Unaudited Information)
* 98.96% and 98.97% designated as exempt interest dividends for federal
income tax purposes for New York Municipal Bond Fund and New Jersey
Municipal Bond Fund, respectively.
** 99.07% and 98.87% designated as exempt interest dividends for federal
income tax purposes for New York Municipal Bond Fund and New Jersey
Municipal Bond Fund, respectively.
See Notes to Financial Statements.
<Page>
<Table>
<Caption>
LEBENTHAL TAXABLE MUNICIPAL
BOND FUND
--------------------------------------
YEAR YEAR
ENDED ENDED
NOVEMBER 30, 2004 NOVEMBER 30, 2003
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 1,001,332 $ 982,197
Net realized gain/loss on investments 56,101 (24,058)
Change in unrealized appreciation/depreciation of investments (45,236) 35,610
----------------- -----------------
Increase in net assets from operations 1,012,197 993,749
Dividends from net investment income (1,001,146) (982,010)
Distribution from net realized capital gains -- (18,332)
Capital share transactions (Note 4) (1,702,284) 4,386,648
----------------- -----------------
Total increase/(decrease) (1,691,233) 4,380,055
Net assets:
Beginning of period 20,118,082 15,738,027
----------------- -----------------
End of period (1) $ 18,426,849 $ 20,118,082
================= =================
(1)Includes Accumulated Net Investment Loss $ (47,272) $ (47,458)
================= =================
</Table>
See Notes to Financial Statements.
<Page>
LEBENTHAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD:
<Table>
<Caption>
LEBENTHAL NEW YORK
MUNICIPAL BOND FUND--CLASS A
------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
------------------------------------------------------------------------
2004 2003 2002 2001 2000
----------- ----------- ----------- ----------- -----------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 8.41 $ 8.33 $ 8.31 $ 7.92 $ 7.64
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Net investment income 0.35 0.36 0.38(a) 0.41 0.41
Net realized and unrealized gain/(loss) on
investments (0.10) 0.11 0.05 0.39 0.28
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.25 0.47 0.43 0.80 0.69
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from net investment income (0.35) (0.36) (0.41) (0.41) (0.41)
Distributions from net realized gain on investments (0.05) (0.03) -- -- --
----------- ----------- ----------- ----------- -----------
Total distributions (0.40) (0.39) (0.41) (0.41) (0.41)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 8.26 $ 8.41 $ 8.33 $ 8.31 $ 7.92
=========== =========== =========== =========== ===========
TOTAL RETURN
(without deduction of sales load) 3.07% 5.76% 4.93% 10.20% 9.28%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 159,634 $ 177,154 $ 165,093 $ 147,456 $ 130,595
Ratio to average net assets:
Expenses 0.87%* 0.85%* 0.88%* 0.81%* 0.86%*
Net investment income 4.21% 4.30% 4.58%(a) 4.93% 5.30%
Portfolio turnover 11.38% 16.64% 13.05% 46.32% 65.05%
</Table>
* Includes fees paid indirectly of less than 0.01% of average net assets.
(a) If the Fund had not adopted the provision of the AICPA Audit and Accounting
Guide for Investment Companies, which requires the amortization of premiums
and accretion of discounts on debt securities using the effective interest
method, net investment income per share and the ratio of of net investment
to average net assets would have been the same as noted above.
See Notes to Financial Statements.
<Page>
<Table>
<Caption>
LEBENTHAL NEW YORK
MUNICIPAL BOND FUND--CLASS B
------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
------------------------------------------------------------------------
2004 2003 2002 2001 2000
----------- ----------- ----------- ----------- -----------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 8.42 $ 8.34 $ 8.31 $ 7.92 $ 7.64
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Net investment income 0.29 0.31 0.33(a) 0.35 0.36
Net realized and unrealized gain/(loss) on
investments (0.10) 0.10 (0.05) 0.39 0.28
----------- ----------- ----------- ----------- -----------
Total from investment income 0.19 0.41 0.38 0.74 0.64
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from net investment income (0.29) (0.30) (0.35) (0.35) (0.36)
Distributions from net realized gain on investments (0.05) (0.03) -- -- --
----------- ----------- ----------- ----------- -----------
Total distributions (0.34) (0.33) (0.35) (0.35) (0.36)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 8.27 $ 8.42 $ 8.34 $ 8.31 $ 7.92
=========== =========== =========== =========== ===========
TOTAL RETURN
(without deduction of sales load) 2.37% 5.02% 4.34% 9.39% 8.53%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 7,763 $ 9,328 $ 7,807 $ 6,142 $ 4,300
Ratios to average net assets:
Expenses + 1.55%* 1.55%* 1.55%* 1.55%* 1.55%*
Net investment income 3.53% 3.59% 3.90%(a) 4.16% 4.60%
Portfolio turnover 11.38% 16.64% 13.05% 46.32% 65.05%
</Table>
* Includes fees paid indirectly of less than 0.01% of average net assets.
+ If the Investment Manager had not waived fees and reimbursed expenses and
the Administrator and Distributor had not waived fees, the ratio of
operating expenses to average assets would have been 2.00%, 1.96%, 2.08%,
2.11% and 2.38%, for the years ended November 30, 2004, 2003, 2002, 2001
and 2000, respectively.
(a) If the Fund had not adopted the provision of the AICPA Audit and Accounting
Guide for Investment Companies, which requires the amortization of premiums
and accretion of discounts on debt securities using the effective interest
method, net investment income per share and the ratio of of net investment
to average net assets would have been the same as noted above.
See Notes to Financial Statements.
<Page>
<Table>
<Caption>
LEBENTHAL NEW JERSEY
MUNICIPAL BOND FUND
------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
------------------------------------------------------------------------
2004 2003 2002 2001 2000
----------- ----------- ----------- ----------- -----------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 7.20 $ 7.05 $ 6.99 $ 6.73 $ 6.51
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Net investment income 0.29 0.30 0.31(a) 0.33 0.34
Net realized and unrealized gain/(loss) on
investments 0.01 0.15 0.06 0.26 0.22
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.30 0.45 0.37 0.59 0.56
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from net investment income (0.29) (0.30) (0.31) (0.33) (0.34)
----------- ----------- ----------- ----------- -----------
Total distributions (0.29) (0.30) (0.31) (0.33) (0.34)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 7.21 $ 7.20 $ 7.05 $ 6.99 $ 6.73
=========== =========== =========== =========== ===========
TOTAL RETURN
(without deduction of sales load) 4.26% 6.47% 5.39% 8.90% 8.92%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 13,463 $ 14,933 $ 13,078 $ 11,356 $ 9,192
Ratio to average net assets:
Expenses + 0.95%* 0.95%* 0.95%* 0.93%* 0.75%*
Net investment income 4.03% 4.17% 4.41%(a) 4.66% 5.24%
Portfolio turnover 8.80% 15.63% 21.46% 30.46% 90.39%
</Table>
* Includes fees paid indirectly of less than 0.01% of average net assets.
+ If the Investment Manager had not waived fees and reimbursed expenses and
the Administrator and Distributor had not waived fees, the ratio of
operating expenses to average net assets would have been 1.37%, 1.32%,
1.48%, 1.47% and 1.60%, for the years ended November 30, 2004, 2003, 2002,
2001 and 2000, respectively.
(a) If the Fund had not adopted the provision of the AICPA Audit and Accounting
Guide for Investment Companies, which requires the amortization of premiums
and accretion of discounts on debt securities using the effective interest
method, net investment income per share would have been the same as noted
above and the ratio of net investment income to average net assets would
have been 4.40%.
See Notes to Financial Statements.
<Page>
<Table>
<Caption>
LEBENTHAL TAXABLE
MUNICIPAL BOND FUND
------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
------------------------------------------------------------------------
2004 2003 2002 2001 2000
----------- ----------- ----------- ----------- -----------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 7.84 $ 7.80 $ 7.49 $ 7.11 $ 6.81
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Net investment income 0.40 0.41 0.44(a) 0.47 0.50
Net realized and unrealized gain/(loss) on
investments 0.01 0.04 0.33 0.40 0.30
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.41 0.45 0.77 0.87 0.80
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from net investment income (0.40) (0.41) (0.46) (0.49) (0.50)
Distributions from net realized gains on investments -- (0.00)** -- -- --
----------- ----------- ----------- ----------- -----------
Total distributions (0.40) (0.41) (0.46) (0.49) (0.50)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 7.85 $ 7.84 $ 7.80 $ 7.49 $ 7.11
=========== =========== =========== =========== ===========
TOTAL RETURN
(without deduction of sales load) 5.41% 5.80% 10.36% 12.22% 12.20%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 18,427 $ 20,118 $ 15,738 $ 13,601 $ 12,504
Ratio to average net assets:
Expenses + 1.00%* 1.00%* 1.00%* 1.00%* 0.90%*
Net investment income 5.15% 5.09% 5.83%(a) 6.34% 7.25%
Portfolio turnover 13.69% 7.83% 22.46% 54.63% 29.26%
</Table>
* Includes fees paid indirectly of 0.01% or less of average net assets.
** Amount represents less than $0.01 per share.
+ If the Investment Manager had not waived fees and reimbursed expenses and
the Administrator and Distributor had not waived fees, the ratio of
operating expenses to average net assets would have been 1.30%, 1.24%,
1.34%, 1.35% and 1.37% for the years ended November 30, 2004, 2003, 2002,
2001, and 2000, respectively.
(a) If the Fund had not adopted the provision of the AICPA Audit and Accounting
Guide for Investment Companies, which requires the amortization of premiums
and accretion of discounts on debt securities using the effective interest
method, net investment income per share and the ratio of of net investment
to average net assets would have been the same as noted above.
See Notes to Financial Statements.
<Page>
LEBENTHAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF ACCOUNTING POLICIES
Lebenthal Funds, Inc. (the "Company") is registered under the Investment Company
Act of 1940 as an open-end management investment company consisting of Lebenthal
New York Municipal Bond Fund (the "New York Bond Fund"), Lebenthal New Jersey
Municipal Bond Fund (the "New Jersey Bond Fund") and Lebenthal Taxable Municipal
Bond Fund (the "Taxable Bond Fund") collectively, "The Funds". Effective
December 3, 1997, the New York Bond Fund began to offer a second class of
shares, Class B. Class B shares are sold without an initial sales charge but
will have a higher expense ratio than Class A shares due to higher 12b-1 fees.
The Company's financial statements are prepared in accordance with generally
accepted accounting principles in the United States.
a) VALUATION OF SECURITIES -
Municipal obligations are stated on the basis of valuations provided by a
pricing service approved by the Board of Directors, which uses information
with respect to transactions in bonds, quotations from bond dealers, market
transactions in comparable securities and various relationships between
securities in determining value. If a pricing service is not used,
municipal obligations will be valued at quoted prices provided by municipal
bond dealers. Other securities for which transaction prices are readily
available are stated at market value (determined on the basis of the last
reported sales price, or a similar means). Short-term investments that will
mature in sixty (60) days or less are stated at amortized cost, which
approximates market value. All other securities and assets are valued at
their fair market value as determined in good faith by or under the
direction of the Board of Directors.
b) FEDERAL INCOME TAXES -
It is the Funds' policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax-exempt and taxable income to its shareholders. Therefore, no
provision for Federal income or Excise tax is required.
c) DIVIDENDS AND DISTRIBUTIONS -
Dividends from net investment income are declared daily and paid monthly.
Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Funds' fiscal year, as declared
by the Funds' Board of Directors.
d) GENERAL -
Securities transactions are recorded on a trade date basis. Realized gains
and losses from securities transactions are recorded on the identified cost
basis. Interest income is recorded on the accrual basis and dividend income
is recorded on the ex-dividend date. Premiums and original issue discounts
on securities purchased are amortized over the life of the respective
securities. For the New York Bond Fund, investment income and realized and
unrealized gains and losses are allocated to each class based upon the
relative daily net assets of each class of share. Expenses that are
directly attributable to a class are charged only to
<Page>
that class. Expenses not directly attributable to a specific class are
allocated based upon the relative daily net assets of each class of shares.
e) FEES PAID INDIRECTLY -
Funds leaving excess cash in demand deposit accounts may receive credits
which are available to offset custody expenses. The Statements of
Operations report gross custody expense, and reflect the amount of such
credits as a reduction in total expenses, of $62, $83, and $70, for the New
York Bond Fund, New Jersey Bond Fund, and Taxable Bond Fund, respectively.
f) ESTIMATES -
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Funds to make estimates and
assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expense during the reporting period. Actual results could differ from those
estimates.
2. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Management Contract the Funds pay a management fee to Boston Advisors,
Inc. (the "Manager"), equal to 0.25% of each Fund's average daily net assets up
to $50 million; 0.225% of such assets between $50 million and $100 million; and
0.20% of such assets in excess of $100 million. The Manager manages the
portfolio of securities of each Fund and makes decisions with respect to the
purchase and sale of investments. Although not required to do so, the Manager
has, in the current year, voluntarily agreed to reimburse expenses in the amount
of $24,838 and $10,356 for the New Jersey Bond Fund and New York Municipal Bond
Fund, respectively. As this waiver is voluntary it may be terminated at any
time.
Advest, Inc. retained commissions from the sales of shares of the Company in the
following amounts:
<Table>
<Caption>
COMMISSIONS RETAINED
BY ADVEST, INC.
--------------------
Lebenthal New York Municipal Bond Fund -- Class A $ 211,540
Lebenthal New York Municipal Bond Fund -- Class B $ 32,394
Lebenthal New Jersey Municipal Bond Fund $ 24,221
Lebenthal Taxable Municipal Bond Fund $ 34,331
------------
$ 302,486
============
</Table>
The Directors of the Company who are unaffiliated with the Manager or the
Distributor are paid $6,250 per annum plus an additional $1,000 to the Audit
Committee Chair.
<Page>
3. DISTRIBUTION PLAN
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the Investment
Company Act of 1940, the Company and Advest, Inc. (the Distributor) have entered
into a Distribution Agreement. For its services under the Distribution
Agreement, the Distributor receives a fee equal to 0.25% of the Fund's average
daily net assets for the New York Bond Fund -- Class A shares, the New Jersey
Bond Fund, and the Taxable Bond Fund, and, 1.00% for the New York Bond Fund --
Class B shares. For the year ended November 30, 2004, the Distributor
voluntarily waived fees of $38,452, $35,580 and $48,606 from the New York Bond
Fund -- Class B shares, the New Jersey Bond Fund, and the Taxable Bond Fund,
respectively. There were no additional expenses borne by the Company pursuant to
the Distribution Plan.
4. CAPITAL STOCK
Transactions in capital stock were as follows:
<Table>
<Caption>
LEBENTHAL NEW YORK MUNICIPAL BOND FUND -- LEBENTHAL NEW YORK MUNICIPAL BOND FUND --
CLASS A CLASS A
YEAR ENDED YEAR ENDED
NOVEMBER 30, 2004 NOVEMBER 30, 2003
----------------------------------------- -----------------------------------------
SHARES AMOUNT SHARES AMOUNT
----------------- ----------------- ----------------- -----------------
Sold 1,164,657 $ 9,682,633 1,823,932 $ 15,313,113
Issued as reinvestment of dividends 788,015 6,559,017 755,768 6,338,368
Redeemed (3,684,987) (30,392,551) (1,323,932) (11,070,993)
----------------- ----------------- ----------------- -----------------
Net increase/(decrease) (1,732,315) $ (14,150,901) 1,255,768 $ 10,580,488
================= ================= ================= =================
Shares authorized ($0.001 par value) 6,666,666,667
=================
</Table>
<Table>
<Caption>
LEBENTHAL NEW YORK MUNICIPAL BOND FUND -- LEBENTHAL NEW YORK MUNICIPAL BOND FUND --
CLASS B CLASS B
YEAR ENDED YEAR ENDED
NOVEMBER 30, 2004 NOVEMBER 30, 2003
----------------------------------------- -----------------------------------------
SHARES AMOUNT SHARES AMOUNT
----------------- ----------------- ----------------- -----------------
Sold 40,386 $ 336,410 208,341 $ 1,748,617
Issued as reinvestment of dividends 34,928 291,471 34,535 290,031
Redeemed (244,039) (2,041,384) (71,361) (601,869)
----------------- ----------------- ----------------- -----------------
Net increase/(decrease) (168,725) $ (1,413,503) 171,515 $ 1,436,779
================= ================= ================= =================
Shares authorized ($0.001 par value) 6,666,666,667
=================
</Table>
<Page>
<Table>
<Caption>
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 2004 NOVEMBER 30, 2003
----------------------------------------- -----------------------------------------
SHARES AMOUNT SHARES AMOUNT
----------------- ----------------- ----------------- -----------------
Sold 92,622 $ 667,415 271,430 $ 1,949,364
Issued as reinvestment of dividends 57,925 416,144 64,016 456,815
Redeemed (356,135) (2,502,796) (116,201) (827,262)
----------------- ----------------- ----------------- -----------------
Net increase/(decrease) (205,588) $ (1,419,237) 219,245 $ 1,578,917
================= ================= ================= =================
Shares authorized ($0.001 par value) 6,666,666,667
=================
</Table>
<Table>
<Caption>
LEBENTHAL TAXABLE MUNICIPAL BOND FUND LEBENTHAL TAXABLE MUNICIPAL BOND FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 2004 NOVEMBER 30, 2003
----------------------------------------- -----------------------------------------
SHARES AMOUNT SHARES AMOUNT
----------------- ----------------- ----------------- -----------------
Sold 212,503 $ 1,683,791 712,571 $ 5,675,398
Issued as reinvestment of dividends 86,012 675,630 83,881 664,395
Redeemed (517,404) (4,061,705) (248,617) (1,953,145)
----------------- ----------------- ----------------- -----------------
Net increase/(decrease) (218,889) $ (1,702,284) 547,835 $ 4,386,648
================= ================= ================= =================
Shares authorized ($0.001 par value) 6,666,666,667
=================
</Table>
5. INVESTMENT TRANSACTIONS
Purchases of investment securities for the New York Bond Fund, the New Jersey
Bond Fund, and the Taxable Bond Fund, other than short term debt obligations and
government securities having maturities of one year or less, were $19,461,639,
$1,179,012, and $2,569,142, respectively. Sales of investment securities for the
New York Bond Fund, the New Jersey Bond Fund, and the Taxable Bond Fund, other
than short term obligations, were $35,537,216, $2,282,548, and $4,455,395,
respectively.
<Page>
6. INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS
Income dividends and capital gain distributions are determined in accordance
with income tax regulations, which may differ from generally acceptable
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities held by each
fund, timing differences and differing characterization of distributions made by
each fund as a whole.
As determined on November 30, 2004, permanent differences resulting primarily
from different book and tax accounting for amortization of bond premium and
characterization of distributions were reclassified at year end. These
reclassifications had no effect on net income, net assets or net assets per
share of each fund.
Tax character of distributions paid to shareholders during the years ended
November 30, 2004 and 2003 were as follows:
<Table>
<Caption>
TAX-EXEMPT ORDINARY LONG-TERM
INCOME INCOME CAPITAL GAIN TOTAL
----------- ----------- ------------ ------------
YEAR ENDED NOVEMBER 30, 2004:
Lebenthal New York Municipal Bond Fund $ 7,319,763 $ 77,798 $ 1,263,608 $ 8,661,169
Lebenthal New Jersey Municipal Bond Fund 568,269 5,899 -- 574,168
Lebenthal Taxable Municipal Bond Fund -- 1,001,146 -- 1,001,146
YEAR ENDED NOVEMBER 30, 2003:
Lebenthal New York Municipal Bond Fund $ 7,569,813 $ 71,965 $ 676,828 $ 8,318,606
Lebenthal New Jersey Municipal Bond Fund 574,390 12,095 -- 586,485
Lebenthal Taxable Municipal Bond Fund -- 981,029 19,313 1,000,342
</Table>
At November 30, 2004, the components of distributable earning on a tax basis
were as follows:
<Table>
<Caption>
UNDISTRIBUTED UNDISTRIBUTED
ORDINARY TAX-EXEMPT LONG-TERM UNREALIZED
INCOME INCOME GAIN APPRECIATION TOTAL
------------- ------------ ------------- -------------- --------------
Lebenthal New York Municipal Bond Fund $ -- $ -- $ 52,293 $ 6,362,602 $ 6,414,895
Lebenthal New Jersey Municipal Bond Fund -- 26,889 53,186 433,213 513,288
Lebenthal Taxable Municipal Bond Fund 32,059 -- 4,234 1,211,799 1,248,092
</Table>
The differences between book and tax basis components of distributable earnings
are primarily due to timing differences on wash sales, dividends payments, and
amortization of bond premium.
There are no capital losses to be carried forward to offset future capital
gains. Capital loss carryforwards utilized during the year ended November 30,
2004 were $70,882 and $24,058, respectively for the New Jersey Bond Fund and the
Taxable Bond Fund.
<Page>
7. CONCENTRATION OF CREDIT RISK
The New York Bond Fund invests primarily in obligations of political
subdivisions of the state of New York and the New Jersey Bond Fund invests
primarily in obligations of political subdivisions of the state of New Jersey
and accordingly these Funds are subject to the risk associated with the
non-performance of such issuers. Each Fund maintains a policy of monitoring its
exposure by reviewing the creditworthiness of the issuers, as well as that of
financial institutions issuing letters of credit, and by limiting the amount of
holdings with letters of credit from one financial institution.
8. CONTRACTUAL OBLIGATIONS
The Fund enters into contracts that contain a variety of indemnifications. The
Fund's maximum exposure under these arrangements is unknown. However, the Fund
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
<Page>
LEBENTHAL FUNDS, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF THE LEBENTHAL FUNDS, INC.:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Lebenthal New York Municipal
Bond, Lebenthal New Jersey Municipal Bond, and the Lebenthal Taxable Municipal
Bond (hereafter referred to as the "Funds") at November 30, 2004, the results of
each of their operations for the year then ended, the changes in each of 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.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at November 30, 2004 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
BOSTON, MASSACHUSETTS
JANUARY 21, 2005
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LEBENTHAL FUNDS, INC.
PROXY RESULTS (UNAUDITED)
At a special meeting of shareholders of the Lebenthal Funds, Inc. (the "Fund")
held on May 20, 2004, such shareholders voted on the following proposals:
PROPOSAL 1 - To approve the new Management Contracts between the Fund, on behalf
of each of the Portfolios, and Boston Advisors, Inc. (the "Manager"). The number
of shares voted are as follows:
<Table>
<Caption>
SHARES VOTED SHARES VOTED SHARES
FOR AGAINST WITHHELD
------------ ------------ --------
LEBENTHAL NEW YORK
MUNICIPAL BOND FUND 21,600,283 254,354 508,085
LEBENTHAL NEW JERSEY
MUNICIPAL BOND FUND 1,972,531 44,289 53,117
LEBENTHAL TAXABLE
MUNICIPAL BOND FUND 1,535,618 19,691 35,655
</Table>
PROPOSAL 2 - To elect five directors of the Fund, each to hold office until
their successors are duly elected and qualified. The number of shares voted are
as follows:
<Table>
<Caption>
LEBENTHAL NEW YORK SHARES VOTED SHARES VOTED
MUNICIPAL BOND FUND FOR AGAINST
- -------------------------- ------------ ------------
Penny Zuckerwise 22,029,857 332,865
Victor Chang 22,029,727 332,995
Mone Anathan III 22,028,465 334,257
Allen G. Botwinick 22,029,857 332,865
Ezekiel Russell Peach, Jr. 22,022,303 340,419
</Table>
<Table>
<Caption>
LEBENTHAL NEW JERSEY SHARES VOTED SHARES VOTED
MUNICIPAL BOND FUND FOR AGAINST
- -------------------------- ------------ ------------
Penny Zuckerwise 2,056,413 13,524
Victor Chang 2,056,413 13,524
Mone Anathan III 2,056,413 13,524
Allen G. Botwinick 2,056,413 13,524
Ezekiel Russell Peach, Jr. 2,056,413 13,524
</Table>
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<Table>
<Caption>
LEBENTHAL TAXABLE SHARES VOTED SHARES VOTED
MUNICIPAL BOND FUND FOR AGAINST
- -------------------------- ------------ ------------
Penny Zuckerwise 1,569,410 21,554
Victor Chang 1,569,410 21,554
Mone Anathan III 1,563,311 27,653
Allen G. Botwinick 1,569,410 21,554
Ezekiel Russell Peach, Jr. 1,569,410 21,554
</Table>
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to securities held in the Fund's portfolio is
available, without charge and upon request, by calling 1-800-594-7078. A report
on "Form N-PX" of how the Fund voted any such proxies during the most recent
12-month period ended November 30 is available through the Lebenthal Funds, Inc.
Internet site at http://www.lebenthalfunds.com. This information is also
available from the EDGAR database on the SEC's Internet site at
http://www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
The Fund files with the SEC a complete schedule of its portfolio holdings, as of
the close of the first and third quarters of its fiscal year, on "Form N-Q."
These filings are available on the SEC's website at http://www.sec.gov and may
be reviewed and copied at the SEC's Public Reference Room in Washington, DC.
(Call 1-800-SEC-0330 for information on the operation of the Public Reference
Room.) You may also access this information by using the CONTACT US tab of the
Lebenthal Funds, Inc. website at http://www.lebenthal.com to make your
request.
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LEBENTHAL FUNDS, INC.
DIRECTORS AND OFFICERS (UNAUDITED)
The Directors, nominees and officers of the Fund and their principal occupations
during the past five years are set forth below.
<Table>
<Caption>
NUMBER OF
FUNDS
IN FUND OTHER
NAME, POSITION(S) COMPLEX DIRECTORSHIPS
ADDRESS HELD WITH TERM OF OFFICE AND PRINCIPAL OCCUPATION(S) OVERSEEN HELD BY
AND AGE THE FUND LENGTH OF TIME SERVED(1) DURING PAST 5 YEARS BY DIRECTORS DIRECTORS
- ------- ------------ ------------------------ ----------------------------- ------------ ---------------
INTERESTED DIRECTOR
Allen G. Botwinick Chairman Since 2004 Consultant of Advest, Inc. 7 Chairman of the
90 State House Square and Director since 2004. Executive Vice Board and
Hartford, CT 06103 President of Administration Trustee of
Age 61 and Operations, The Advest Boston Advisors
Group, Inc. and Advest, Inc. Trust since
from 1992 to 2004. March 2000.
DISINTERESTED DIRECTORS
Mone Anathan III Director Since 2004 Dean's Council, Harvard 7 Trustee of
99 Garden Street Divinity School, 2004 to Boston Advisors
Cambridge, MA 02136 present. Student, Harvard Trust since
Age 65 Divinity School, 1997 to 2003. March 2000.
President, Filene's Basement Director,
(off-price retailer) from 1995 Brookstone,
to August 1997. Inc. (specialty
retailer),
since 1989.
Victor Chang Director Since 1990 Retired. Guest lecturer and 7 Trustee of
One Federal Street researcher for central banks Boston
Boston, MA 02110 and the U.S. and foreign Advisors
Age: 66 governments. Economic Trust
investment consultant, Fuji since
Securities, Inc. (retired, December
October 1998). 2003.
Ezekiel Russell Director Since 2004 Retired,1999 to present; 7 Trustee of
Peach, Jr. Robert Finnegan & Lynah, PC Boston
137 Atlantic Avenue (public accounting), Advisors
Marblehead, MA 01945 partner/principal, 1968 to Trust
Age: 71 1999. since
March
2000;
Trustee of
Salem Five
Cent
Savings
Bank.
Penny Zuckerwise Director Since 2002 Chief Executive Officer, 7 Current
Utendahl Capital Utendahl Capital Management, Board/Advisory
Management, L.P. L.P, a financial services Board
30 Broad Street company, 2004 to present. positions
21st Floor Principal and founder, include
New York, NY 10004 Wiserock L.L.C. since 1999, a BBR
Age: 49 company which provides Partners,
strategy, management oversight an asset
and business advice. management
Co-founder, general partner and
and governing board member, advisory
Boldcap Ventures LLC (formerly services
Angels4equity) since June firm,
2000, a private equity Lioness
investment fund. Capital
partners,
a private
equity
fund
investing
in women
and
minority
owned
companies,
and
Colspace,
a software
based knowledge
management
company;
Trustee of
Boston Advisors
Trust since
December 2003.
</Table>
(1) Each Director will hold office for an indefinite term until the earliest of
(i) the next meeting of shareholders, if any, called for the purpose of
considering the election or re-election of such Director and until the
election and qualification of his or her successor, if any, elected at such
meeting, or (ii) the date a Director resigns or retires, or a Director is
removed by the Board of Directors or shareholders, in accordance with the
Fund's ByLaws, as amended, and Articles of Incorporation, as amended. Each
officer will hold office for an indefinite term until the date he or she
resigns or retires or until his or her successor is elected and qualifies.
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<Table>
<Caption>
NAME, POSITION(S)
ADDRESS HELD WITH TERM OF OFFICE AND PRINCIPAL OCCUPATION(S)
AND AGE THE FUND LENGTH OF TIME SERVED DURING PAST 5 YEARS
- ------- --------------- ----------------------- --------------------------------------------------------------
Alexandra Lebenthal President Since 2004 President of the Fund since 2004. Director and Chairman of
120 Broadway the Fund from 2002 to 2004. President of the Fund from 1995
New York, NY 10271 to February 2002. President of Lebenthal, a Division of
Age: 40 Advest, Inc., since December 2001. Director, Senior Vice
President and Senior Managing Director of Advest, Inc. since
2001. President of Lebenthal & Co., Inc. from 1995 to
December 2001. Executive Vice President of Lebenthal Asset
Management, Inc. from 1997 to June 2002.
Michael J. Vogelzang Executive Since 2004 Executive Vice President of the Fund since 2004. President
One Federal Street Vice of the Fund from 2002 to 2004. President and Chief
Boston, MA 02110 President Investment Officer of Boston Advisors, Inc. since April 1999
Age: 43 and Senior Vice President and Chief Investment Officer from
August 1997 to 1999. President and Chief Executive Officer
of Boston Advisors Trust since March 2000. Trustee of Boston
Advisors Trust from 2000 to 2003. Director of Advest, Inc.
since 2001.
Ronald Maggiacomo Treasurer Since 2003 Treasurer of the Fund since October 2003. Treasurer of
One Federal Street Boston Advisors Trust since December 2003. Chief Operating
Boston, MA 02110 Officer of Boston Advisors, Inc. since March 2003. President
Age: 62 of Billings & Co. Inc. since March 1982. Vice President of
Bank Street Management Company since June 2003. (All
companies for which Mr. Maggiacomo serves as an officer are
subsidiaries of The Advest Group, Inc.)
Gregory Serbe Secretary Since 2000 Secretary of the Fund since 2000. Senior Portfolio Manager
120 Broadway of the Fund since April 1, 2001, and Assistant Portfolio
New York, NY 10271 Manager of the Fund from 1998 to 2001. Senior Portfolio
Age: 59 Manager of Boston Advisors New York Municipal Money Market
Fund and Boston Advisors Tax Free Money Market Fund since
January 2005. President of Lebenthal Asset Management, a
division of Boston Advisors, Inc. and Senior Vice President
of Boston Advisors, Inc. since 2002. Managing Director of
Lebenthal Asset Management, Inc. from 1998 to 1999, Senior
Managing Director of Lebenthal Asset Management, Inc. from
1999 to 2000, Executive Vice President and Chief Operating
Officer of Lebenthal Asset Management, Inc. from 2000 to
2001 and President of Lebenthal Asset Management, Inc. from
2001 to June 2002.
Tanya Kerrigan Chief Since 2004 Chief Compliance Officer of the Fund since 2004. Assistant
One Federal Street Compliance Secretary of the Fund since 2003. Vice President and
Boston, MA 02110 Officer and Director of Compliance of Boston Advisors, Inc. since
Age: 32 Assistant October 2003. Compliance Officer of H.C. Wainwright & Co.,
Secretary Inc. from December 1999 to April 2003. Full time law student
from August 1997 to May 2000.
</Table>
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION INCLUDES ADDITIONAL INFORMATION
ABOUT THE FUND'S DIRECTORS AND IS AVAILABLE, WITHOUT CHARGE, UPON REQUEST, BY
CALLING 1-800-221-5822.
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This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective prospectus, which includes
information regarding the Fund's objectives and policies, experience of its
management, marketability of shares, and other information.
LEBENTHAL FUNDS, INC.
120 Broadway
New York, New York 10271
(800) 594-7078
DISTRIBUTOR AND
SHAREHOLDER SERVICING AGENT
Advest, Inc.
90 State House Square
Hartford, CT 06108