THE FLORIDA TAX FREE FUNDS The Florida TaxFree ShortTerm Fund The Florida TaxFree Money Market Fund Semi Annual Report October 31, 2003 Distributor: William R. Hough & Co. 100 Second Ave S, Ste. 800 St. Petersburg, FL 33701 (800) 557 7555 www.hough.com This report must be preceded or accompanied by a current prospectus of The Florida TaxFree Funds. HF 1083 CONTENTS President's Message...............................................2 The Florida TaxFree Money Market Fund Statement of Investments 	Variable Rate Demand Notes................................3 	Municipal Bonds...........................................5 The Florida TaxFree ShortTerm Fund Statement of Investments 	Variable Rate Demand Notes................................11 	Municipal Bonds...........................................11 Statements of Assets and Liabilities..............................18 Statements of Operations..........................................19 Statements of Changes in Net Assets...............................20 Notes to Financial Statements.....................................21 Dear Shareholder: We are pleased to present the Semi-Annual Report on The Florida TaxFree Funds. We at The Hough Group of Funds continue to believe that either or both of The Florida TaxFree Funds represent prudent investments for investors who seek to reduce their federal income and Florida Intangible Tax liabilities. The Florida TaxFree Money Market Fund Total net assets of the Fund were $166.3 million as of October 31, 2003. This compares with $160.8 million on April 30, 2003 and $172.1 million on October 31, 2002. iMoneyNet Inc. (formerly IBC Financial Data, Inc.) is a respected mutual fund performance and statistical reporting company that ranks money market fund performance by category. For the five-year period ending October 31, 2003, The Florida TaxFree Money Fund was ranked number 69 out of 356 tax-exempt money market funds by iMoneyNet, based on total return for the period. For the three-year period ended October 31, 2003, The Florida TaxFree Money Market Fund was ranked 97 out of 422 tax-exempt money market funds by iMoneyNet. For the one-year period ended October 31, 2003, The Florida TaxFree Money Market Fund was ranked 166 out of 516 tax-exempt money market funds by iMoneyNet. Had the adviser not reimbursed certain fees and expenses, the yield and ranking would have been lower. Past performance is also no guarantee of future results. The 7-day average yield of the Fund was 0.50% as of October 31, 2003. For individual investors in the 35% federal tax bracket who have Florida intangible assets of $250,000 or more, the tax equivalent yield was 0.87%. The Florida TaxFree ShortTerm Fund As of October 31, 2003, total net assets for the Fund were $22.9 million, compared with assets of $24.0 million on April 30, 2003 and $23.1 million on October 31, 2002. The portfolio had a dollar-weighted average maturity of 2.4 years and a 30-day SEC yield of 1.49% on October 31, 2003. This yield equates to a tax equivalent yield of 2.39% for an individual investor in the 35% federal tax bracket with Florida intangible assets of $250,000 or more. The Florida TaxFree ShortTerm Fund is a variable net asset value mutual fund, and therefore the value of shares fluctuates with the movements of the short-term municipal bond market. The net asset value per share was $10.17 on October 31, 2003, compared with $10.21 on April 30, 2003, and $10.25 on October 31, 2002. For the six-month period ended October 31, 2003 the Florida TaxFree ShortTerm Fund had a total return of .87%, assuming reinvestment of all distributions. The cumulative total return on the Fund since its inception November 22, 1993 through October 31, 2003 was 51.39%. This represents a return of 4.26% on an annualized basis. Another way of illustrating this return since inception would be that $10,000 invested on November 22, 1993 would have grown to $15,138.80 on October 31, 2003, assuming reinvestment of all distributions. The Florida Intangible Tax The Florida intangible tax is assessed against intangible assets such as stocks, bonds, and mutual funds as of January 1 each year. Each of The Florida TaxFree Funds will ordinarily invest at least 80% of its assets in Florida obligations. While state-specific tax-free funds can invest up to 35% in out-of-state issues, your Funds' portfolio management committee intends to keep the Funds completely exempt from the Florida Intangible Tax by investing in only Florida or other exempt issues at the appropriate time. We appreciate your investment in The Florida TaxFree Funds and urge you to contact us at 1-800-557-7555 whenever we can be of assistance. Sincerely, W. Robb Hough, Jr. President The Hough Group of Funds The Florida TaxFree Money Market Fund Statement of Investments October 31, 2003 (Unaudited) Variable Rate Demand Notes Florida (50.2%) (a) $Principal $Value Amount Alachua, FL, IDB, (Sabine Inc., Project), 1.15%, 09/01/15, SunTrust Bank, N.A., 1,200,000 	1,200,000 LOC Brevard County, FL, Health Facilities RB (Health First Inc, Project), 1.16%, 08/01/14, SunTrust Bank, N.A., LOC 2,300,000 2,300,000 Capital Trust Agency, FL, IDB, (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 1.05%, 10/01/33, JP Morgan Chase Bank, LOC 3,000,000 3,000,000 Collier County, FL, IDA, IDB, (Redlands Christian Migrant Association, Inc., Project), 1.10%, 12/01/26, Bank of America, N.A., LOC 3,900,000 3,900,000 Dade County, FL, IDA, Pollution Ctrl RB, (Florida Power & Light), 1.18%, 06/01/21 3,000,000 3,000,000 Florida Development Finance Corp., IDB, (DSLA Realty LC Project), Series A 1 1.20%, 04/01/25, SunTrust Bank, N.A., LOC 1,570,000 1,570,000 Florida Development Finance Corp., IDB (RL Smith Investments LLC Project), Series A 2, 1.20%, 04/01/25, SunTrust Bank, N.A., LOC 1,565,000 1,565,000 Florida Development Finance, IDB, (Charlotte Community Project), Series A 3, 1.10%, 02/01/21, SunTrust Bank, N.A., LOC 1,495,000 1,495,000 Florida Gulf Coast University Foundation, Inc., Certificates of Participation, Series A, 1.15%, 08/01/32, Wachovia Bank, N.A., LOC 1,000,000 1,000,000 Florida HFA, Housing RB, (Lakes of Northdale Project), Series D, 1.10%, 06/01/07, SouthTrust Bank of AL, LOC 2,065,000 2,065,000 Florida HFA, Housing RB, (Town Colony Development), 1983 Series E, 1.10%, 12/01/05, Credit Suisse First Boston, LOC 1,885,000 1,885,000 Florida HFC, MultiFamily Revenue Refunding, 2002 Series N 1 (Lighthouse Bay Apartments), 1.05%, 11/1/32, Freddie Mac Liquidity Facility 1,000,000 1,000,000 Gulf Breeze, FL, Hospital RB, (Heritage Healthcare Project), 1.25%, 01/01/24, Anchor National Life Insurance Co., SBPA 345,000 345,000 Highlands County, FL Health Facilities Auth, Hospital RB, (Adventist Health System/Sunbelt), Series 2003A, 1.05%, 11/15/32, SunTrust Bank, N.A., LOC 1,000,000 1,000,000 Jackson County, FL, Pollution Control RB, (Gulf Power Company Project), 1.21%, 07/01/22 500,000 500,000 Jacksonville, FL Electric Auth, Electric Util RB, Series B, 1.12%, 10/01/10, Landesbank Hessen Thuringen Girozentrale, SBPA 1,400,000 1,400,000 Jacksonville, FL Electric Auth, Electric Util RB, Series F, 1.12%, 10/01/30, Landesbank Hessen Thuringen Girozentrale, SBPA 500,000 500,000 Jacksonville, FL Electric Auth, Electric System Revenue Bonds, Series 2001B, 1.12%, 10/1/30, Bank of America N.A., SBPA 2,050,000 2,050,000 Jacksonville, FL Electric Auth, Electric Util RB, Series C, 1.12%, 10/01/30, Dexia Credit Local de France, SBPA 600,000 600,000 Jacksonville, FL Economic Development Commission, IDB, (Goodwill Industries of North Florida Project), 1.02%, 07/01/23, SouthTrust Bank, N.A., LOC 2,600,000 2,600,000 Jacksonville, FL Health Facilities Auth, Hospital RB, (Genesis Rehab Hospital), 1.15%, 05/01/21, Bank of America, N.A., LOC 1,000,000 1,000,000 Jacksonville, FL, Pollution Ctrl RB, (Florida Power & Light), 1.25%, 05/01/29 4,400,000 4,400,000 Lakeland, FL, Electric Util RB, Series A, 1.12%, 10/01/35, The Toronto Dominion Bank, SBPA 2,600,000 2,600,000 Lee County, FL Hospital Board of Directors, Hospital RB, (Lee Memorial Hospital), Series D, 1.12%, 04/01/20/ SunTrust Bank, N.A., Liquidity Facility 1,800,000 1,800,000 Lee County, FL Hospital Board of Directors, Hospital RB, (Lee Memorial Hospital), Series 1995A, 1.17%, 04/01/25, SunTrust Bank, N.A., Liquidity Facility 3,600,000 3,600,000 Lee County, FL Hospital Board of Directors, Hospital RB, (Lee Memorial Hospital), Series 1997B, 1.17%, 04/01/27, SunTrust Bank, N.A., Liquidity Facility 250,000 250,000 Lee County, FL HFA, Housing RB, (University Club Apartments), 1.14%, 05/15/35 SouthTrust Bank, N.A., LOC 800,000 800,000 Manatee County, FL, Pollution Ctrl RB, (Florida Power & Light), 1.17%, 09/01/24 2,000,000 2,000,000 New Hampshire Bond Bank (Pinkerton Academy), 1.10%, 06/1/11, Fleet National Bank, LOC 900,000 900,000 Ocean Highway & Port Authority, FL, Transportation RB, Series 1990, 1.15%, 12/01/20, Wachovia Bank, N.A., LOC 1,500,000 1,500,000 Ocean Highway & Port Authority, FL, Transportation RB, Series 1990, 1.15%, 12/01/20, Wachovia Bank, N.A., LOC 700,000 700,000 Orange County, FL Health Facilities Auth, Hospital RB, (Adventist Health Systems/ Sunbelt Obligated Group), Floater Certificates, Series 171, Series A, 1.20%, 11/15/14, FSA Insured, Morgan Stanley Dean Witter, Liquidity Facility 6,035,000 6,035,000 Orange County, FL Health Facilities Auth, Hospital RB, (Adventist Health Systems/ Sunbelt Obligated Group), 1.05%, 11/15/14, SunTrust Bank N.A., LOC 2,435,000 2,435,000 Orange County, FL IDA, IDB, (Central Florida YMCA Project), Series 2002A, 1.10% 05/01/27, Bank of America, N.A., LOC 1,000,000 1,000,000 Orange County, FL IDA, IDB, (Independent Blood & Tissue Services), Series 2002, 1.05%, 10/01/27, Suntrust Bank N.A., LOC 2,000,000 2,000,000 Palm Beach County, FL, Public Improv RB, (Jewish Community Campus Project), 1.05%, 03/01/27, AMBAC Insured, The Northern Trust Company, SBPA 5,000,000 5,000,000 Palm Beach County, FL, Public Improv RB, (Jewish Community Campus Project), 1.05%, 03/01/30, The Northern Trust Company, LOC 1,200,000 1,200,000 Palm Beach County, FL, Hospital RB, (Hospice of Palm Beach County, Inc., Project), Series 2001, 1.08%, 10/01/31, The Northern Trust Company, LOC 1,700,000 1,700,000 Palm Beach County, FL, IDB, (Henry Morrison Flagler), 1.08%, 11/01/36, The Northern Trust Bank, LOC 3,000,000 3,000,000 Palm Beach County, FL, Higher Education RB, (Benjamin Private School Project), 1.05%, 07/01/25, Bank of America, N.A., LOC 1,500,000 1,500,000 Port Orange, FL, Higher Education RB, (Palmer College Project), 1.06%, 10/01/32, LaSalle Bank, N.A.								 3,000,000 3,000,000 St. Lucie County, FL IDB, (Freedom Plastics FL Project), 1.13%, 11/01/20, LaSalle Bank, N.A., LOC 2,300,000 2,300,000 St. Lucie County, FL, Pollution Control, (Florida Power & Light), 1.18%, 09/01/28 1,800,000 1,800,000 St. Petersburg, FL Health Facilities Auth, Hospital RB, (Menorah Manor Project), Series 1997, 1.10%, 07/01/27, SunTrust Bank N.A., Tampa Bay, LOC 700,000 700,000 Southeast Volusia, FL Hospital District, Hospital RB, (Bert Fish Medical Center), 1.15%, 05/01/22, SouthTrust Bank of Alabama, N.A., LOC 600,000 600,000 Sumter County, FL IDA, IDB, (Great Southern Wood, FL, Inc.), 1.20%, 04/01/05, SouthTrust Bank N.A., LOC 200,000 200,000 Non Florida (2.7%) (a) Brazos River, TX Harbor Nav District, Merey Seeney Project, 1.21%, 04/01/21, Bank of America N.A., LOC 400,000 400,000 Brazos River, TX Harbor Nav District, Merey Seeney Project, 1.21%, Chase Manhattan Bank, LOC 400,000 400,000 Providence, RI Housing Auth, Housing RB, (Cathedral Square), Series A, 1.30%, 09/01/30, Fleet Bank, LOC 2,530,000 2,530,000 Providence, RI Housing Auth, Housing RB, (Cathedral Square), Series B, 1.30%, 09/01/17, Fleet Bank, LOC 1,210,000 1,210,000 Total Variable Rate Demand Notes (Cost $89,535,000) 89,535,000 Municipal Bonds Florida (46.0%) (a) $Principal $Value Amount Arcadia, FL, Sales Tax RB, (Dedicated Pool Local Government), 4.80%, 12/01/03, 100,000 100,300 FGIC Insured Arcadia, FL, Public Improvement RB, (Dedicated Pool Local Government), 5.25%, 12/01/03, Prerefunded @ 102 50,000 51,136 Brevard County, FL, Public Improvement RB, (Fourth Cent Tourist Development Tax, Florida Marlins Training), 3.30%, 03/01/04, FGIC Insured 145,000 146,036 Brevard County, FL, Health & Hospital RB, (Wuestoff Memorial Hospital), 4.60%, 04/01/04, MBIA Insured 60,000 60,767 Broward County, FL, Certificates of Participation (School Board), 4.70%, 07/01/04, AMBAC Insured 100,000 102,378 Broward County, FL, General Obligations (School Board), 5.00%, 02/15/04 750,000 758,426 Broward County, FL, Sales Tax RB, Commercial Paper, 1.00%, 12/02/03, Dexia Credit Local de France, Liquidity Facility 2,500,000 2,500,000 Cape Coral, FL, Water Improvement Assessment, Water RB (Southwest 3 Area), 1.10%, 09/01/04, FSA Insured 100,000 99,999 Clearwater, FL, Public Improvement, Sales Tax RB, 4.00%, 12/01/03, FSA Insured 200,000 200,487 Collier County, FL School Board, Certificates of Participation, 2.13%, 02/15/04, FSA Insured 100,000 100,309 Dade County, FL, Public Improvement GO, 6.90%, 07/01/04, AMBAC Insured 1,050,000 1,090,894 Dade County, FL, Higher Education RB (University of Miami), 4.75%, 04/01/04, MBIA Insured 100,000 101,537 Dade County, FL School Board, Certificates of Participation, 5.70%, 05/01/04, Pre Refunded @ 101 200,000 206,675 Delray Beach, FL Utility Tax RB, 3.00%, 06/01/04, FSA Insured 525,000 530,869 Deltona, FL Utility Revenue Bonds, 2.00%, 10/01/04, MBIA Insured 500,000 504,205 Escambia County, FL HFA, Housing RB, (Single Family Mortgage), Series B, 1.15%, 04/08/04, GNMA/FNMA 725,000 725,000 First Florida Governmental Financing Commission RB, 4.20%, 07/01/04, AMBAC Insured 100,000 102,041 Florida HFA, Housing RB, (Multi family Housing), Series C, 5.35%, 02/01/04, FNMA Collateralized 100,000 100,976 Florida HFA, Housing RB, (Multi family Housing), Series C, 5.35%, 08/01/04, FNMA Collateralized 100,000 102,884 Florida Local Government Commission, Commercial Paper, (Florida Association of Counties Pooled Program), 1.05%, 02/09/04, Wachovia Bank, N.A., LOC 2,389,000 2,389,000 Florida Local Government Commission, Commercial Paper, (Florida Association of Counties Pooled Program), 0.80%, 11/03/03/ Wachovia Bank, N.A., LOC 4,000,000 4,000,000 Florida Local Government Commission, Commercial Paper, (Florida Pooled Program), Series B, 1.00%, 01/14/04, Wachovia Bank, N.A., LOC 1,731,000 1,731,000 Florida State, GO Bonds, (Refunding Sr. Lien), 6.00%, 07/01/04 100,000 103,271 Florida State Board of Education, GO Bonds, (Capital Outlay), Series B, 5.63%, 06/01/04 250,000 256,523 Florida State Board of Education, GO Bonds, (Capital Outlay), Series A, 5.25%, 01/01/04 650,000 654,539 Florida State Board of Education, GO Bonds, (Capital Outlay), Series A, 5.75%, 01/01/04, Pre Refunded @ 101 100,000 101,747 Florida State Board of Education, GO Bonds, (Capital Outlay), Series E, 5.80%, 06/01/04, Pre Refunded @ 101 170,000 176,364 Florida State Board of Education, GO Bonds, (Capital Outlay), Series A, 6.00%, 06/01/04, Pre Refunded @ 101 65,000 67,481 Florida State Board of Education, GO Bonds, (Capital Outlay), Series A, 6.10%, 06/01/04, Pre Refunded @ 101 10,000 10,379 Florida State Board of Education, GO Bonds, (Capital Outlay), Series A, 5.24%, 01/01/04 200,000 201,399 Florida State Board of Education, GO Bonds, (Capital Outlay), Series B, 4.38%, 01/01/04 100,000 100,562 Florida State Board of Education, GO Bonds, (Capital Outlay), Series A, 5.00%, 01/01/04 50,000 50,311 Florida State Board of Education, GO Bonds, (Capital Outlay), Series B, 4.20%, 06/01/04 500,000 509,091 Florida State Board of Education, Public Improvement RB, (Lottery Revenues), Series C, 4.00%, 07/01/04, FGIC Insured 100,000 101,947 Florida State Board of Education, Public Improvement RB, (Lottery Revenues), Series C, 5.00%, 07/01/04, FGIC Insured 600,000 615,635 Florida State Correctional Privatization Commission, Certificates of Participation, 4.25%, 08/01/04, MBIA Insured 325,000 332,722 Florida State Department of Environmental Protection, Public Improvement RB, Series A, 5.25%, 07/01/04, FGIC Insured 100,000 102,800 Florida State Division of Bond Finance, Public Improvement RB, Department of General Services, Department of Environmental Protection, (Preservation 2000), Series B, 5.75%, 07/01/04, FGIC Insured 100,000 103,066 Florida State Division of Bond Finance, Public Improvement RB, Department of General Services, Department of Environmental Protection, (Preservation 2000), Series A, 5.00%, 07/01/04, FGIC Insured 275,000 282,193 Florida State Division of Bond Finance, Public Improvement RB, Department of General Services, Department of Environmental Protection, (Preservation 2000), Series A, 4.50%, 07/01/04, MBIA Insured 250,000 255,666 Florida State Division of Bond Finance, Public Improvement RB, Department of General Services, Department of Environmental Protection, (Preservation 2000), Series A, 4.75%, 07/01/04, Pre Refunded @ 101 205,000 211,899 Florida State Divison of Bond Finance, Public Improvement RB, Department of General Services, Department of Environmental Protection, (Preservation 2000), Series A, 5.00%, 07/01/04, MBIA Insured 25,000 25,633 Florida Municipal Loan Council, Public Improvement RB, Series A, 4.75%, 04/01/04, MBIA Insured 100,000 101,430 Florida Municipal Loan Council, Public Improvement RB, Series C, 3.00%, 11/01/03, MBIA Insured 950,000 950,001 Florida State Turnpike Auth, Transportation RB, Series A, 5.00%, 07/01/04, FGIC Insured 50,000 51,282 Fort Lauderdale, FL, GO Bonds, (Park Improvement Project), 5.00%, 01/01/04, Pre Refunded @ 101 200,000 203,302 Fort Lauderdale, FL, GO Bonds, (Park Improvement Project), 5.30%, 01/01/04, Pre Refunded @ 101 500,000 508,501 Fort Myers, FL, Water & Sewer RB, Series A, 5.00%, 04/01/04, FGIC Insured 100,000 101,591 Gainesville, FL Utility System, Electric Util RB, CP Notes, Series C, 0.80%, 11/06/03, Bayerische Landesbank Girozentrale, LOC 1,883,000 1,883,000 Gainesville, FL Utility System, Electric Util RB, CP Notes, Series C, 0.80%, 11/06/03, Bayerische Landesbank Girozentrale, LOC 1,000,000 1,000,000 Halifax, FL Hospital & Healthcare RB (Halifax Hospital & Medical Center), 4.63%, 10/01/04, MBIA Insured 250,000 257,888 Hamilton County, OH, GO Bonds, (County Parking Facility), 4.15%, 12/01/03 250,000 250,000 Hillsborough County, FL School Board, Certificates of Participation, 5.88%, 07/01/04, Pre Refunded @ 102 2,335,000 2,457,113 Hillsborough County, FL School Board, Certificates of Participation, 6.00%, 07/01/04, Pre Refunded @ 102 200,000 210,574 Hillsborough County, FL School District, GO Bonds, 5.25%, 08/15/04, MBIA Insured 100,000 103,283 Jacksonville, FL, Commercial Paper, (Florida Power & Light), Series 1992, 0.90%, 11/13/03 5,300,000 5,300,000 Jacksonville, FL Port Auth, Transportation RB, 7.63%, 11/01/03, Pre Refunded @ 102 585,000 596,700 Kissimmee, FL Utility Auth, Electric Util RB, Commercial Paper, Series 2000B, 0.95%, 12/09/03, Bank of Nova Scotia, Liquidity Facility 6,000,000 6,000,000 Lee County, FL HFA, Housing RB, (Floater, PT 611), 1.30%, 09/02/04, Mandatory Tender @ 100, Merill Lynch Liquidity Facility 2,275,000 2,275,000 Lee County, FL School Board, Certificates of Participation, Series A, 5.75%, 08/01/04, Pre Refunded @ 102 100,000 105,459 Marion County, FL School Board, Certificates of Participation, 2.00%, 06/01/04, FSA Insured 100,000 100,512 Miami Dade County, FL Educational Facilities Auth, Higher Ed RB, Series A, 4.40%, 04/01/04, AMBAC Insured 200,000 202,676 Miami Dade County, FL Tax Revenue (UMSA Public Improvements), 3.00%, 04/01/04, AMBAC Insured 100,000 100,795 Miami Dade County, FL Transportation RB, (Miami International Airport), Commercial Paper, Series A, 0.95%, 11/06/03, J.P. Morgan Chase, Bayerische Landesbank Girozentrale, State Street Bank, LOC 2,541,000 2,541,000 Monroe County, FL, Sales Tax RB, 3.875%, 04/01/04, MBIA Insured 50,000 50,543 Nassau County, FL Water & Sewer Rev, 2.00%, 9/1/04, MBIA Insured 145,000 146,137 Orange County, FL School Board, Certificates of Participation, 4.65 %, 08/01/04, AMBAC Insured 250,000 256,583 Orlando, FL Utilities Commission, Water & Electric RB, (Commercial Paper), Series 1999A, 0.90%, 01/15/04, J.P. Morgan Chase, LOC 6,500,000 6,500,000 Orlando, FL Utilities commission, Water & Electric RB, Series A, 6.02%, 04/01/04, Escrowed to Maturity 100,000 102,161 Palm Beach County, FL, GO Bonds, (Recreational and Cultural Facilities), 2.00%, 07/01/04 865,000 871,013 Palm Beach County, FL Health Facilities Auth, Hospital RB, (Pooled Hospital Loan Project), Commercial Paper, 0.95%, 02/12/04, SunTrust Bank N.A., LOC 2,500,000 2,500,000 Palm Beach County, FL Health Facilties Auth, Hospital RB, (JFK Medical Center), 5.80%, 12/01/03 Pre refunded @ 102 100,000 102,382 Palm Beach County, FL School Board, Certificates of Participation, Series A, 6.20%, 08/01/04, Pre refunded @101 100,000 104,837 Palm Beach County, FL School Board, Certificates of Participation, Series A, 4.90%, 08/01/04 AMBAC Insured 50,000 51,388 Palm Beach County, FL, Public Improvement RB, (Stadium Facility), 4.60%, 12/01/03, MBIA Insured 150,000 150,402 Pasco County, FL, Public Improvement RB, (Guaranteed Entitlement), 2.00%, 12/01/03, FSA Insured 440,000 440,321 Polk County, FL, Public Improvement RB, (FUel Tax Revenue), 4.40% 12/01/03, FGIC Insured 100,000 100,282 Polk County, FL, School Board, Certificates of Participation, Series A, 2.50%, 01/01/04, FSA Insured 100,000 100,245 Polk County, FL, Transportation RB, 4.25%, 12/01/03, FSA Insured 200,000 200,518 Putnam County, FL Development Auth, Pollution Ctrl RB, (Seminole Electric Cooperative, Inc.), Series D, 1.05%, 12/15/03, national Rural Utilities Cooperative Finance Corporation, GTY, Mandatory Tender @ 100 2,500,000 2,500,000 Reedy Creek, FL Improvement Dist Utility Rev, Ser2, 5.00%, 10/1/04, MBIA Insured 2,600,000 2,672,124 St. Petersburg, FL Professional Sports Facs Sales Tax Rev Ref, 2.00%, 10/01/04, FSA Insured 890,000 898,074 Seminole County, FL School Board, Certificate of Participation, 6.13%m 07/01/04, Pre Refunded @102 285,000 300,377 Seminole County, FL School District, Tax Anticipation Notes, 2.00%, 08/20/04 2,000,000 2,015,846 Starke, FL, Water & Sewer RB, 2.005, 07/01/04, MBIA Insured 190,000 191,124 Sumter County, FL Capital Improvement RB, 2.00%, 06/01/04, MBIA Insured 180,000 180,934 Sunshine State Governmental Financing Comm, Commerical Paper, Series A, 0.90%, 01/12/04, FGIC Insured, SBPA: HSH Nordbank 4,539,000 4,539,000 Sunshine State Givernmental Financing Comm, Commerical Paper, Series C, 0.85%, 02/05/04, FGIC Insured, SBPA: HSH Nordbank 1,330,000 1,330,000 Sunshine State Governmental Financing Comm, Commercial Paper, Series G, 0.93%, 12/03/03, MBIA Insured, SBPA: Landesbank Hessen Thuringen Girozentrale 2,500,000 2,500,000 Sunshine State Governmental Financing Comm, Commercial Paper, Series F, 0.89%, 12/08/03, AMBAC Insured, SBPA: Landesbank Hessen Thuringen Girozentrale 1,500,000 1,500,000 Tampa, FL, Hospital RB, (Catholic Health), Series A 1, 4.30%, 11/15/03, AMBAC Insured 50,000 50,060 Tohopekaliga, FL, Water & Sewer RB, Series A, 2.00%, 10/01/04, FSA Insured 1,675,000 1,689,736 Volusia County, FL School District Refunding GO Bonds, 5.00%, 8/1/04, FGIC Insured 500,000 514,787 Non Florida (1.0%) (a) Adams County, CO School District No. 012, GO Bonds, 6.50%, 12/15/03 135,000 135,871 Evergreen, CO, General Obligation Bonds, (Park & Recreation District), 5.00%, 12/01/03, AMBAC Insured 200,000 200,645 Kent, Washington, General Obligation Bond, 3.00%, 12/01/03, MBIA Insured 200,000 200,322 Larimer Weld & Boulder Counties, CO School District No. R 2J, GO Bonds, 3.00%, 12/15/03, FSA Insured 240,000 240,570 Michigan State South Central Power Agency, Electric Utility RB, (Power Supply System), 5.60%, 11/01/03, MBIA Insured 250,000 250,000 New York State HFA, Housing RB, (Housing Project Mortgage), Series A, 5.20%, 11/01/03, FSA Insured 380,000 380,000 Puerto Rico, Electric Power Authority, Electric Utility RB, 6.00%, 07/01/04, FSA Insured 250,000 258,095 Vermont Municipal Bond Bank, Higher Education RB, Series 1, 5.00%, 12/01/03, AMBAC Insured 100,000 100,324 Total Municipal Bonds (Cost $79,696,928) 79,696,928 Total Investments (Cost $169,231,928) (a) 169,231,928 <FN> <F1> Summary of ratings: AAA/Equivalent 98%, AA/Equivalent 2% Average Portfolio Maturity: 55.4 days AMBAC Ambac Assurance Corporation CP Commercial Paper FGIC Financial Guaranty Insurance Corporation FHA Federal Housing Authority FNMA Federal National Mortgage Association FSA Financial Securities Assurance GIC General Insurance Contract GO General Obligation GNMA Government National Mortgage Association GTY Guarantee HFA Housing Finance Authority IDA Industrial Development Authority IDB Industrial Development Bond LOC Letter of Credit MBIA Municipal Bond Insurance Association RB Revenue Bond SBPA Standby Bond Purchase Agreement SFM Single Family Mortgage (a) Percentages indicated are based on investments </FN> </Table> The Florida TaxFree ShortTerm Fund Statement of Investments October 31, 2003 Variable Rate Demand Notes Florida (4.9%) (a) $Principal $Value Amount Dade County, FL IDA, (Florida Power & Light), 1.18%, 06/01/21 300,000 300,000 Jacksonville, FL Pollution Control RB, (Florida Power & Light), 1.25% 05/01/29 400,000 400,000 St. Lucie County, FL, Pollution Control (Florida Power & Light), 1.18%, 09/01/28 400,000 400,000 Non Florida (2.6%) (a) Brazos River, TX Harbor Navigation District, Solid Waste RB, (Merey Sweeney L.P. Project), Series A, 1.21%, 04/01/21, Chase Manhattan Bank, LOC 200,000 200,000 Providence, RI Housing Auth, Housing RB, (Cathedral Square), Series A, 1.30%, 09/01/30, Fleet Bank LOC 300,000 300,000 Providence, RI Housing Auth, Housing RB, (Cathedral Square), Series B, 1.30%, 09/01/17, Fleet Bank LOC 90,000 90,000 Total Variable Rate Demand Notes (Cost $1,690,000) 1,690,000 Municipal Bonds Florida (91.5%) (a) $Principal $Value Amount Baker County, FL Hospital Auth, Hospital RB, 4.60%, 12/01/06, ACA Insured 175,000 185,960 Baker County, FL Hospital Auth, Hospital RB, 4.65%, 12/01/07, ACA Insured 120,000 129,006 Broward County, FL GO Bonds, Series A, 4.00%, 01/01/09 200,000 211,882 Broward County, FL Educational Facilities Auth, Higher Education RB, (Nova Southeastern University Project), 6.00%, 04/01/08, Connie Lee Insured 170,000 176,521 Broward County, FL Industrial Development RB, (Wheelabrator South Project), 5.00%, 12/01/06 240,000 258,370 Broward County, FL Industrial Development RB, (Wheelabrator South Project), 5.50%, 12/01/08 300,000 335,487 Clearwater, FL Housing Auth, Housing RB, (Hamptons Apartments), 8.25%, 05/01/04, Pre Refunded @ 103 580,000 615,589 Collier County, FL School Board, Certificates of Participation, 4.50%, 02/15/06, FSA Insured 205,000 218,100 Dade County, FL GO Bonds, 5.25%, 11/01/04, FGIC Insured 50,000 52,061 Dade County, FL School Board, Certificates of Participation, Series B, 5.60%, 08/01/06, Pre Refunded @ 101 115,000 128,541 Dade County, FL Solid Waste RB, (Resource Recovery Facility), 5.35%, 10/01/08, AMBAC Insured 110,000 121,730 Dade County, FL School District, GO Bonds, 5.00%, 08/01/05, MBIA Insured 100,000 103,655 Dade County, FL Water & Sewer RB, 4.70%, 10/01/04, FGIC Insured 50,000 51,047 Escambia County, FL Housing Auth, Higher Education RB, (University of West Florida), 4.10% 100,000 107,097 Escambia County, FL HFA, Single Family Mortgage RB, (Multi County Program), 4.10%, 04/01/04, GNMA Collateralized 110,000 110,922 First Florida Governmental Financing Commission, Public Improv RB, 4.20%, 07/01/04, AMBAC Insured 100,000 102,137 First Florida Governmental Financing Commission, Public Improv RB, 4.00%, 07/01/08, MBIA Insured 50,000 53,236 Florida Gas Utility, Gas Tas RB, (Gas Project No. 1), 5.0%, 12/01/06, FSA Insured 190,000 208,329 Florida Gas Utility, Gas Tax RB, (Gas Project No. 1), 4.20%, 12/01/07, FSA Insured 225,000 242,973 Florida Gas Utility, Gas Tax RB, (Gas Project No. 1), 5.00%, 12/01/08, FSA Insured 100,000 111,916 Florida State Department of Transportation, GO Bonds, (Right of Way), 5.80%, 07/01/05, Pre Refunded @ 101 125,000 135,578 Florida State Board of Education, GO Bonds, Capital Outlay, 8.40%, 06/01/07 55,000 63,064 Florida State Board of Education, GO Bonds, Series A, 5.00%, 06/01/07 200,000 220,366 Florida State Board of Education, GO Bonds, Capital Outlay, Series E, 5.80%, 06/01/04, Pre Refunded @ 101 150,000 155,753 Florida State Board of Education, GO Bonds, Capital Outlay, Series A, 6.00%, 01/01/05 100,000 105,550 Florida State Board of Education, GO Bonds, Capital Outlay, Series A, 5.25%, 01/01/09 50,000 55,301 Florida State Board of Education, GO Bonds, 6.20%, 05/01/07, Escrowed to Maturity 150,000 153,324 Florida State Board of Regents, Certificates of Participation, State University System, (FL Atlantic University Foundation, Inc.), 4.00%, 05/01/04, Asset Guaranty Insured 125,000 126,836 Florida State Department of Transportation, Transportation RB, (Alligator Alley), 6.25%, 07/01/06, FGIC Insured 100,000 111,596 Florida State Department of Environmental Protection, Public Improv RB, (Preservation 2000), Series 2001A, 5.00%, 07/01/07, FSA Insured 250,000 275,563 Florida State Division of Bond Finance, Deparment of General Services, Public Improv RB, (Department of Environmental Protection, Preservation 2000), Series B, 6.00%, 07/01/09, AMBAC Insured 100,000 116,501 Florida State Divison of Bond Finance, Department of General Services, Public Improv RB, (Department of Environmental Protection, Preservation 2000), Series B, 5.75%, 07/01/06, FGIC Insured 450,000 496,373 Florida State Divison of Bond Finance, Department of General Services, Public Improv RB, (Department of Environmental Protection, Preservation 2000), Series A, 5.00%, 07/01/05, FGIC Insured 350,000 371,494 Florida State Divison of Bond Finance, Department of General Services, Public Improv RB, (Department of Environmental Protection, Preservation 2000), Series A, 5.25%, 07/01/07, MBIA Insured 50,000 54,615 Florida State Turnpike Auth, Transportation RB, Series B, 4.40%, 07/01/07, MBIA Insured 100,000 108,123 Gainesville, FL Utility System Rev, Series C, 5.0%, 10/01/08, FSA Insured 100,000 111,641 Greater Orlando, FL Aviation Auth, Transportation RB, (Orlando, FL Airport), Series B, 3.25%, 10/01/06, FSA Insured 250,000 258,775 Gulf Breeze, FL Local Government Loan, Series 1985 B, 4.40%, 12/01/06, FGIC Insured, Mandatory Tender @ 100 50,000 53,561 Gulf Breeze, FL, Public Improvement RB, (Local Government Loan), Series B, 4.90%, 12/01/08, FGIC Insured, Mandatory Tender @ 100 100,000 111,038 Gulf Breeze, FL, Public Improvement RB, (Local Government Loan), Series C, 4.50%, 12/01/04, FGIC Insured, Mandatory Tender @ 100 260,000 269,396 Gulf Breeze, FL, Public Improvement RB, (Local Government Loan), Series C, 4.60%, 12/01/05, Mandatory Put, FGIC Insured 50,000 53,193 Gulf Breeze, FL Public Improvement RB, (Venice Local Government Loan), 4.00%, 12/01/06, FGIC Insured, Mandatory Tender @ 100 35,000 37,291 Halifax, FL Hospital Medical Center, Hospital RB, Series A, 5.00%,10/01/07, MBIA Insured 440,000 472,767 Highlands County, FL Health Facilities Auth, Hospital RB, (Adventist Health/ Sunbelt), 3.35%, 09/01/05, Mandatory Tender @ 100 500,000 513,765 Hillsborough County, FL, Water & Sewer RB, (Capacity Special Assessment), 4.50%, 03/01/06, FSA Insured 190,000 202,508 Hillsborough County, FL Aviation Auth Rev, Tampa International Airport, Series A, 5.50%, 10/01/08, FSA Insured 150,000 170,240 Hillsborough County, FL IDA, Pollution Control RB, (Tampa Electric Company), 4.00%, 08/01/07, Mandatory Tender @ 100 320,000 324,314 Hillsborough County, FL IDA, Hospital RB, (University Community Hospital), 5.60%, 08/15/07, MBIA Insured 50,000 52,478 Hillsborough County, FL IDA, Hospital RB, (University Community Hospital), 4.90%, 08/15/07 165,000 168,234 Hillsborough County, FL IDA, Hospital RB, (University Community Hospital), 5.10%, 08/15/09 95,000 97,872 Hillsborough County, FL HFA, Housing RB, Single Family Mortgage, Series A 1, 4.25%, 04/01/07, GNMA/FNMA Collateralized 85,000 87,884 Hillsborough County, FL IDA, Hospital RB, (H. Lee Moffitt Cancer Center Project), Series C, 3.00%, 07/01/04 170,000 171,979 Hillsborough County, FL IDA, Hospital RB, (Tampa General Hospital), Series A, 2.50%, 10/01/04 500,000 504,930 Hillsborough County, FL IDA, Hospital RB, (Tampa General Hospital), Series A, 2.50%, 10/01/06 55,000 53,744 Jackson County, FL School Board & Capital Improvement RB, 2.00%, 12/01/05, MBIA Insured 115,000 116,498 Jacksonville, FL Capital Improv RB, (Gator Bowl Project), 6.00%, 10/01/04, Pre Refunded @ 101 165,000 174,083 Jacksonville, FL Electric Auth, Electric Util RB, (St. Johns River), Issue 2, Series 14, 4.90%, 10/01/08 30,000 31,909 Jacksonville, FL, Higher Education RB, (Edward Waters College Project), 3.60%, 10/01/06, Mandatory Tender @ 100, First Union National Bank, LOC 575,000 575,000 Jacksonville, FL Health Facilities Auth, Hospital RB, (Charity Obligated Group), Series A, 5.50%, 08/15/06, MBIA Insured 250,000 275,090 Jacksonville, FL Port Auth, Seaport RB, Series 2000, 4.70%, 11/01/06, Escrowed to Maturity 165,000 178,863 Jacksonville, FL Port Auth, Seaport RB, Series 2000, 4.70%, 11/01/06, MBIA Insured 245,000 264,470 Lafayette County, FL Public Improv RB, Series 2000, 4.90%, 09/01/04 80,000 82,079 Lee County, FL IDA, Hospital RB, (Cypress Cove Healthpark), Series A, 5.90%, 10/01/07 65,000 64,973 Lee County, FL IDA, Water & Sewer RB, (Bonita Springs Utilities Project), 4.75%, 11/01/04, FSA Insured 185,000 191,549 Lee County, FL IDA, Water & Sewer RB, (Bonita Springs Utilities Project), 4.75%, 11/01/05, FSA Insured 210,000 223,238 Lee County, FL IDA, Water & Sewer RB, (Bonita Springs Utilities Project), 3.90%, 11/01/05, AMBAC Insured 295,000 308,467 Lee County, FL Solid Waste System, Solid Waste RB, 5.25%, 10/01/07 MBIA Insured 500,000 548,310 Lee County, FL Memorial Health System, Hospital RB, Series A, 4.00%, 04/01/07, FSA Insured 250,000 265,275 Leesburg, FL, Hospital RB, (Leesburg Regional Medical Center Project), Series A, 4.00%, 07/01/09 600,000 606,972 Martin County, FL Health Facilities Auth, Hospital RB, (Martin Memorial Medical Center), Series B, 5.25%, 11/15/07, MBIA Insured 250,000 278,820 Miami Beach, FL, Water & Sewer RB, 5.4%, 09/01/08, FSA Insured 250,000 271,020 Miami Dade County, FL School Board, Certificates of Participation, Series C, 5.25%, 08/01/06, FSA Insured 100,000 109,374 Miami Dade County, FL Solid Waste System, Solid Waste RB, 4.20%, 10/01/05, AMBAC Insured 75,000 78,992 Naples, FL Hospital RB, (Naples Community Hospital, Inc. Project), 4.90%, 10/01/04, MBIA Insured 200,000 204,828 North Miami, FL Health Facilities Auth, Hospital RB, (Catholic Health Services Obligation Group), 5.10%, 05/15/04, SunTrust Bank, Miami, LOC 190,000 194,353 Northern Palm Beach County, FL Improvement District, Public Improv RB, (Water Control & Improvement, Unit Development 18), 4.30%, 08/01/05, MBIA Insured 50,000 52,517 Ocoee, FL, Public Improvement RB, 3.80%, 10/01/07, MBIA Insured 100,000 106,225 Orange County, FL, Health Facilities Auth, Hospital RB, (Orlando Regional Healthcare), Series A, 6.25%, 10/01/07, Escrowed to Maturity 235,000 272,050 Orange County, FL, Health Facilities Auth, Hospital RB, (Adventist Health System), 5.50%, 11/15/03 250,000 250,253 Orange County, FL, Public Improvement RB, (Tourist Development Tax), 5.00%, 10/01/06, AMBAC Insured 25,000 27,210 Orange County, FL, HFA, Housing RB, (Homeowner Revenue), Series A 1, 4.95%, 09/01/05 15,000 15,289 Orange County, FL, HFA, Housing RB, (Homeowner Revenue), Series A, 2.40%, 09/01/08 135,000 135,549 Orlando, FL, Water & Sewer RB, (Wastewater System), Series A, 3.25%, 10/01/08, AMBAC Insured 170,000 176,115 Osceola County, FL School Board, Certificates of Participation, Series A, (Four Corners Charter School), 5.00%, 08/01/05, MBIA Insured 215,000 228,399 Palm Bay, FL, Water & Sewer RB, (Special Assessment), Series A, 2.10%, 07/01/08, MBIA Insured 130,000 127,128 Palm Beach County, FL, Public Improvement RB, (Criminal Justice Facilities), 5.38%, 06/01/07, FGIC Insured 250,000 278,670 Palm Beach County, FL, Hospital RB, (Lourdes Noreen McKeen Residence for Geriatric Care, Inc.), 3.50%, 12/01/07, Radian Asset Assurance Insured 250,000 259,700 Palm Beach, FL, HFA, Housing RB, (Lake Crystal Apartments Project), 4.20%, 12/01/04, FHLMC Collateralized 130,000 132,891 Pasco County, FL, HFA, Housing RB, (Oak Trail Apartments Project), Series A, 5.35%, 06/01/08, Mandatory Tender @ 100, AXA Reinsurance, Surety 300,000 316,938 Pinellas County, FL, HFA, Single Family Mortgage RB, Series 1997 C, 5.05%, 09/01/07, GNMA Collateralized 35,000 36,102 Pinellas County, FL, HFA, Single Family Mortgage RB, (Multi County Program), Series B 1, 5.05%, 09/01/08, GNMA,FNMA Collateralized 60,000 61,504 Pinellas County, FL, HFA, Single Family Mortgage RB, (Multi County Program), Series A, 3.70%, 09/01/06, GNMA,FNMA Collateralized 85,000 86,442 Pinellas County, FL, HFA, Single Family Mortgage RB, (Multi County Program), Series A, 2.05%, 09/01/06, GNMA,FNMA Collateralized 155,000 154,774 Plantation, FL, Health Facilities Auth, Hospital RB, (Covenant Village of FL, Inc.), 4.35%, 12/01/03 100,000 100,187 Reedy Creek, FL, Improvement District, Public Improv RB, Series A, 5.00%, 06/01/07, AMBAC Insured 135,000 148,747 Reedy Creek, FL, Improvement District, Public Improv RB, Series A, 4.20%, 06/01/09, AMBAC Insured 50,000 53,712 St. Petersburg, FL, Excise Tax Revenue Refunding RB, 4.50%, 10/01/05, FGIC Insured 100,000 105,788 St. Petersburg, FL, Water & Sewer RB, (Utility Tax Revenue), 5.00%, 06/01/07, AMBAC Insured 300,000 330,549 South Lake County, FL, Hospital District, Hospital RB, (South Lake Hospital, Inc.), 4.63% 65,000 66,712 South Miami, FL, Health Facilities Auth, Hospital RB, (Baptist Health System), 5.00%, 10/01/06, MBIA Insured 100,000 107,899 Sunrise, FL, Water & Sewer RB, Series A, 5.75%, 10/01/06, Pre Refunded @ 101 100,000 112,537 Sunrise Lakes, FL, GO Bonds, (Phase 4 Recreation District), 4.13%, 08/01/04, AMBAC Insured 100,000 102,286 Tallahassee, FL, Electric Utility RB, Series A, 4.00%, 10/01/04, FSA Insured 100,000 102,669 Tampa, FL, Hospital RB, (H. Lee Moffit Project), Series A, 4.25%, 07/01/06 60,000 62,303 Tampa, Fl, Hospital RB, (H. Lee Moffit Project), Series A, 4.63%, 07/01/09 50,000 51,645 Tampa, FL, Health System, Hospital RB, (Catholic Health East), Series A 3, 4.25%, 11/15/08, MBIA Insured 150,000 161,847 Tampa, FL, Sports Authority, Public Improvement RB, (Interlocal Agreement, Tampa Bay), 5.10%, 04/01/05, Escrowed to Maturity 50,000 52,695 Tampa, FL, Water & Sewer RB, 5.00%, 10/01/08, FGIC Insured 50,000 53,999 Turtle Run, FL, Community Development District, Special Assessment RB, (Water Management Benefit), 5.00%, 05/01/05, MBIA Insured 210,000 221,451 Venice, FL, Hospital RB, (Bon Secours Health System Project), 5.10%, 08/15/05, MBIA Insured 100,000 106,454 Venice, FL, Hospital RB, (Bon Secours Health System Project), 5.30%, 08/15/07, MBIA Insured 215,000 237,027 Volusia County, FL Health Facilities Auth, Hospital RB, (John Knox Project), Series A, 5.50%, 06/01/05, Asset Guaranty Insured 300,000 317,802 Volusia County, FL, Water & Sewer RB, 2.00%, 10/01/08, FGIC Insured 190,000 184,743 West Orange, FL Healthcare District, Hospital RB, Series 1999A, 5.00%, 02/01/04 500,000 503,440 Non Florida (1.0%) (a) Puerto Rico Commonwealth Medical Services Administration, Certificates of Participation, Series 2002, 12/01/03 235,000 235,157 Total Municipal Bonds (Cost $20,578,802) (a) 20,971,769 Total Investments (100%) (Cost $22,268,802) (a) 22,661,769 <FN> <F1> Summary of Ratings: AAA/Equivalent: 68%, AA/Equivalent: 16% A/Equivalent: 5%, BBB/Equivalent: 6%, Other: 5% Average Portfolio Maturity: 2.44 Years AMBAC Ambac Assurance Corporation CP Commercial Paper FGIC Financial Guaranty Insurance Corporation FHA Federal Housing Authority FNMA Federal National Mortgage Association FSA Financial Securities Assurance GIC General Insurance Contract GO General Obligation GNMA Government National Mortgage Association GTY Guarantee HFA Housing Finance Authority IDA Industrial Development Authority IDB Industrial Development Bond LOC Letter of Credit MBIA Municipal Bond Insurance Association RB Revenue Bond SBPA Standby Bond Purchase Agreement SFM Single Family Mortgage (a) Percentages indicated are based on investments See Notes to Financial Statements </FN> </Table> THE FLORIDA TAXFREE FUNDS Statement of Assets and Liabilities For the Six Months Ended October 31, 2003 (Unaudited) Money Fund ShortTerm Fund ASSETS Investments in securities, at value (cost $169,231,928 and $22,268,802 respectively).................................... $169,231,928 $22,661,769 Cash......................................................... 65,245 59,062 Receivables: 	Interest............................................. 513,771 280,661 	Fund shares sold..................................... 162,637 0 		Total assets................................. $169,973,581 $23,001,492 LIABILITIES Payable for investment securities purchased.................. $3,482,552 $54,496 Dividend payable............................................. 71,115 48,203 Funds advanced by manager.................................... 73,393 9,681 Funds advanced by custodian.................................. 0 0 		Total liabilities............................ $3,627,060 $112,380 NET ASSETS Paid in capital.............................................. $166,347,906 $22,364,296 Net unrealized appreciation (depreciation) on investments.... 0 392,967 Accumulated net investment income............................ 2,519 10,611 Accumulated net realized gain (loss)......................... (3,904) 121,238 Net assets................................................... $166,346,521 $22,889,112 Number of shares outstanding................................. 166,499,153 2,249,549 Net asset value, offering price and redemption price per share.............................................. $1.00 $10.17 See Notes to Financial Statements THE FLORIDA TAXFREE FUNDS Statements of Operations For the Six Months Ended October 31, 2003 (Unaudited) Money Fund ShortTerm Fund INVESTMENT INCOME Income: 	Interest......................................... $898,402 $355,806 Expenses: 	Investment advisory fee (Note 2)................. 422,552 70,869 	Distribution and service fees (Note 2)........... 41,410 8,136 	Custodian fees................................... 7,002 7,189 	Transfer agency fees and expenses (Note 2)....... 58,301 7,470 	Printing costs................................... 9,906	 1,748 	Professional fees................................ 25,893	 13,815 	Insurance........................................ 4,173 569 	Registration & filing fees....................... 20,523	 12,710 	Trustees' fees & expenses........................ 9,180 1,620 	Other expenses................................... 18,065 19,504 	TOTAL EXPENSES................................... 617,004 143,630 Expense reimbursements & fee reductions (Note 2)......... (194,452) (84,573) 	Net expenses..................................... 422,552 59,057 Net investment income.................................... $475,850 $296,749 REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments.................. $(351) $64,614 Net unrealized appreciation (depreciation) on investments........................................... 0 (186,256) 	Net realized & unrealized gain (loss) on 	investments...................................... $475,499 $175,107 See Notes To Financial Statements THE FLORIDA TAXFREE FUNDS Statement of Changes in Net Assets 						 					Money Fund		 ShortTerm Fund 					Six Months Year Six Months Year 					Ended Ended Ended Ended 					(unaudited) 4/30/03 (unaudited) 4/30/03 					10/31/03 10/31/03 INCREASE (DECREASE) IN NET ASSETS Operations: 	Net investment income.... $475,850 $1,631,470 $296,749 $693,348 	Net realized gain/loss 	on investments........... (351) (3,553) 64,614 144,664 	Unrealized appreciation 	(depreciation) of 	investments.............. 0 0 (186,256) 195,518 	Increase in net assets 	from operations.......... 475,499 1,627,917 175,107 1,033,530 Dividends to shareholders from: 	Net investment income.... (475,850) (1,631,470) (296,749) (693,348) 	Net realized gains....... 0 (41,247) 0 (151,534) Fund share transactions (note 3). 5,556,236 (6,012,535) (954,034) 1,410,951 	Net increase (decrease) 	in net assets............ 5,555,885 (6,057,335) (1,075,676) 1,599,599 Net Assets: 	Beginning of period...... 160,790,636 166,847,971 23,964,788 22,365,189 	End of period............ $166,346,521 $160,790,636 $22,889,112 $23,964,788 See Notes to Financial Statements 1. Summary of Accounting Policies The Florida TaxFree Money Market Fund (the "Money Fund") and The Florida TaxFree ShortTerm Fund (the "ShortTerm Fund") are series of The Hough Group of Funds (the "Trust"), which was organized as a Massachusetts Business Trust on July 22, 1993. The Trust is registered as an open-end non-diversified management investment company and commenced operations on November 22, 1993. Both Funds seek a high level of current interest income, exempt from federal income tax, as is consistent with the preservation of capital and liquidity, and both are intended to be exempt from Florida intangible property tax. Each Fund is considered to be a separate entity for financial reporting and tax purposes. Their financial statements are prepared in accordance with accounting principles generally accepted in the United States of America for investment companies as follows: Valuation of Securities For the Money Fund, investments are stated at amortized cost. Under this valuation method, a portfolio instrument is valued at cost and any discount or premium is amortized to the maturity of the instrument. For the ShortTerm Fund, municipal obligations are stated on the basis of valuations provided by an independent pricing service approved by the Board of Trustees, which considers information with respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various relationships between securities in determining value. Variable Rate Demand Notes The Funds have invested in certain variable interest demand notes that are redeemable at specified intervals upon demand. The securities are secured as to principal and interest by bank letters of credit or corporate or insurance company guarantees. The maturity of these instruments for the purpose of calculating the portfolio's weighted average maturity is considered to be the greater of the period until the interest rate is adjusted or until the principal can be recovered by demand. Securities Traded on a When-Issued or Delayed Delivery Bonds The Funds may trade on a when-issued or delayed delivery basis, with payment and delivery scheduled for a future date. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Funds will generally purchase these securities with the intention of acquiring such securities, it may sell such securities before the settlement date. Federal Income Taxes It is the policy of each Fund to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its income to its shareholders. Therefore, no provision for federal income tax is required. Dividends and Distributions Dividends from investment income (excluding capital gains and losses if any) are declared daily and paid monthly. Distributions of net realized gains, if any, on the sales of investments are recorded on the ex-dividend date, and made after the close of the Fund's fiscal year and in November, December and/or January, as declared by the Board of Trustees. Such distributions are subject to federal income taxes. Dividends paid from net investment income are generally exempt from federal income taxes. However, certain shareholders may be subject to the Alternative Minimum Tax (AMT). General Securities transactions are accounted for on the trade date (the date an order to buy or sell is executed). Interest income, including amortization of premium and accretion of discount, is recorded on the accrual basis. Realized gains or losses from securities transactions are recorded on the identified cost basis. In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or its affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote. Expenses Expenses arising in connection with each Fund are allocated directly to the respective Fund, if specifically identifiable. Other expenses are allocated between the Funds in proportion to the relative net assets of each Fund. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 2. Investment Management Fees and Other Transactions with Affiliate Under its investment advisory agreements, William R. Hough & Co. (WRH) provides the Funds with investment research, advice, and supervision, and manages the business affairs of each Fund. For these services, the Money Fund and ShortTerm Fund have agreed to pay WRH a monthly fee at an annual rate of .50% and .60%, respectively, of their average net assets. For the six-month period ended October 31, 2003, management fees totaled $422,552 and $70,869 for the Money Fund and ShortTerm Fund, respectively. The Funds also compensate WRH for services provided under a Transfer Agency and Fund Accounting Agreement at the rate of $18 per account per year. During the six month period ended October 31, 2003, fees under this agreement amounted to $32,301 and $2,394 for the Money Fund and the ShortTerm Fund, respectively. However, these and all other expenses of the Funds were paid by WRH to the extent that they exceeded .50% of each Fund's average daily net assets. Expenses in excess of .50% of each Fund's average daily net assets, exclusive of interest, taxes, expenses of withholding taxes, brokerage commissions, extraordinary expenses and distribution fees payable by a fund under its distribution and service plan, will continue to be paid by WRH until notice is otherwise provided to shareholders. To the extent that actual expenses in future years are less than the maximum .50% expense limitation, the Funds may be required to reimburse WRH for expenses paid in excess of the limitation during the prior three years, subject to the .50% expense limitation. Amounts subject to recapture and related expiration dates are as follows: 		 4/30/2004	4/30/2005	4/30/2006 Money Fund	 $ 464,465	$ 503,009	$ 368,675 ShortTerm Fund	 $ 150,561	$ 169,943	$ 148,206 The Funds have adopted Distribution and Service Plans (the "Plans") under Securities and Exchange Commission Rule 12b-1, which authorize each Fund to pay WRH up to .25% of its annual average net assets for shareholder support services or sales activities. The amounts reported as distribution and service fees in the 2. Investment Management Fees and Other Transactions with Affiliate (continued) Statements of Operations represent Fund distribution costs, such as advertising, printing, and dealer commissions, all of which were paid by WRH, and are included in expense reimbursements and fee reductions. During the six-month period ended October 31, 2003, the Money Fund paid $314 to WRH for brokerage fees and the ShortTerm Fund paid $208 to WRH for brokerage fees. Fees are paid to Trustees of the Trust at the rate of $1,000 per year plus $500 per quarterly meeting and $400 per audit committee meeting per trustee. Subsequent Event - Sale of William R. Hough & Co. On December 15, 2003, it was announced that WRH, which serves as advisor, distributor, and transfer agent for The Florida TaxFree Funds, was purchased by RBC Dain Rauscher, Inc., a wholly owned subsidiary of Royal Bank of Canada. It is uncertain at this time what impact this transaction will have on the Funds. The anticipated closing date for the purchase of WRH is February 27, 2004. 3. Fund Shares Transactions in Fund shares for the six month period ended October 31, 2003 and the year ended April 30,2003 were as follows: 		Money Fund				 ShortTerm Fund 						 Shares Dollars 		Six Months	Year	 Six Months Year Six Months Year 		Ended		Ended Ended Ended Ended Ended 		10/31/03	4/30/03 10/31/03 4/30/03 10/31/03 4/30/03 Sold.......... 212,208,483 432,376,137 833,323 2,149,066 8,522,880 21,951,567 Issued on reinvested dividends..... 477,831 1,599,401 25,452 73,320 259,376 750,482 Redeemed...... (207,130,078) (439,988,073) (955,500) (2,082,121) (9,736,290) (21,291,098) Net increase (decrease).... 5,556,236 (6,012,535) (96,725) 140,265 (954,034) 1,410,951 All at $1.00 per share 4. Investment Transactions Purchases and sales/maturities of investment securities (excluding short term securities) for the ShortTerm Fund for the six months ended October 31, 2003 were $7,118,618 and $7,191,054, respectively. 5. Federal Income Taxes & Distributions to Shareholders At October 31, 2003, the cost of securities for federal income tax purposes was approximately the same as that for financial reporting purposes. Market value includes net unrealized appreciation over tax cost of $22,263,786 for the ShortTerm Fund, which consists of aggregate gross unrealized appreciation and (depreciation) of $437,012 and (44,045), respectively. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from accounting principals generally accepted in the United States of America. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from that reflected in the accompanying financial statements. Differences between book basis and tax basis distributions and undistributed gains are attributed primarily to market discount accretion. The amount and character of tax-basis distributions and composition of net assets are finalized at fiscal year end; accordingly, tax basis balances have not been determined as of October 31, 2003. As of April 30, 2003, the ShortTerm Fund had net tax basis capital loss carryforwards in the aggregate of $3,553, which are available to offset future distributable, realized taxable gains. THE FLORIDA TAX FREE FUNDS Notes to Financial Statements (Unaudited) (Continued) 6. Financial Highlights 							 MONEY FUND PER SHARE OPERATING PERFORMANCE 6 Months Year Year Year Year Year (for a share outstanding 		Ended	 Ended Ended Ended Ended Ended throughout the period)			10/31/03 4/30/03 4/30/02 4/30/01 4/30/00 4/30/99 					 Net asset value, beginning of period..................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Income from investment operations: 	Net investment 	income................ 0.003 0.010 0.019 0.036 0.032 0.030 Less distributions: 	Dividends from net 	investment income..... (0.003) (0.010) (0.019) (0.036) (0.031) (0.030) 	Return of capital..... 0.000 0.000 0.000 0.000 (0.001) 0.000 Total Distributions (0.003) (0.010) (0.019) (0.036) (0.032) (0.030) Net asset value, end of period........................ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 TOTAL RETURN.................. 0.29% 0.99% 1.89% 3.70% 3.26% 3.02% Ratios/supplemental Data Net assets at end of period (000's)............. $166,347 $160,791 $166,848 $152,342 $137,051 $160,410 Ratios to average daily net assets:* 	Expenses.............. .50% .47% .40% .40% .40% .39% 	Expenses (before 	reimbursement)........ .72% .69% .70%	 .74% .70% .73% 	Net investment 	income................ .56% .96% 1.84% 3.63% 3.11% 2.96% <FN> <F1> * Figures for six months ended October 31, 2003 are annualized </FN> 6. Financial Highlights (continued) 							 SHORTTERM FUND PER SHARE OPERATING PERFORMANCE 6 Months Year Year Year Year Year (for a share outstanding 		Ended	 Ended Ended Ended Ended Ended throughout the period)			10/31/03 4/30/03 4/30/02 4/30/01 4/30/00 4/30/99 					 Net asset value, beginning of period..................... $10.21 $10.14 $10.09 $9.84 $10.11 $10.05 Income from investment operations: 	Net investment 	income................		0.13 0.30 0.38 0.41 0.41 0.40 	Net realized and 	unrealized gain (loss) 	on investments........ (0.04) 0.13 0.10 0.25 (0.27) 0.06 	Total from investment 	operations............ 0.09 0.43 0.48 0.66 0.14 0.46 Less distributions: 	Dividends from net 	investment income.....		(0.13) (0.30) (0.38) (0.41) (0.40) (0.40) 	Net realized gains.... 0.00 (0.06) (0.05) 0.00	 0.00 0.00 	Return of capital.....		0.00 0.00 0.00 0.00 (0.01) 0.00 Total distributions			(0.13) (0.36) (0.43) (0.41) (0.41) (0.40) Net asset value, end of period........................		$10.17	 $10.21 $10.14 $10.09 $9.84 $10.11 TOTAL RETURN..................		0.87% 2.72% 4.77% 6.79% 1.39% 4.71% Ratios/supplemental data Net assets at end of period (000's).............		$22,889 $23,965 $22,365 $28,484 $32,779 $29,356 Ratios to average daily net assets:* 	Expenses..............		.50% .43% .40% .40% .40% .39% 	Expenses (before 	reimbursement)........		1.21% 1.11% 1.07% .92% .91% .93% 	Net investment 	income................		2.49% 3.18% 3.73% 4.07% 3.97% 4.00% Portfolio turnover rate.......		34.7% 19.7% 62.1% 26.0% 32.2% 25.6% <FN> <F1> * Figures for six months ended October 31, 2003 are annualized </FN> Interested Trustee W. Robb Hough, Jr., age 50 Current Positions Held with the Funds: President and Chairman Term of Office and Length of Time Served: Indefinitely until successor is elected. Chairman since November 1993; President since May 1996. Principal Occupations During the Past Five Years: President, William R. Hough & Co. Number of Portfolios Overseen Within the Fund Complex: 2 Other Directorships Held Outside the Fund Complex: Director and President, William R. Hough & Co. Independent Trustees Daniel Calabria, age 67 Current Positions Held with the Funds: Trustee Term of Office and Length of Time Served: Indefinitely until successor is elected. Trustee since November 1993. Principal Occupations During the Past Five Years: Retired; Trustee for various mutual funds Number of Portfolios Overseen Within the Fund Complex: 2 Other Directorships Held Outside the Fund Complex: Trustee, IDEX Mutual Funds; Trustee, AEGON/Transamerica Series Funds William C. James, age 76 Current Positions Held with the Funds: Trustee Term of Office and Length of Time Served: Indefinitely until successor is elected. Trustee since November 1993. Principal Occupations During the Past Five Years: Retired; Private Investor Number of Portfolios Overseen Within the Fund Complex: 2 Other Directorships Held Outside the Fund Complex: None James T. Lang, age 82 Current Positions Held with the Funds: Trustee Term of Office and Length of Time Served: Indefinitely until successor is elected. Trustee since November 1993. Principal Occupations During the Past Five Years: Financial manager of U.S. Department of Commerce Grants to World Trade Association of Florida, financial consultant, trustee of various individual trusts Number of Portfolios Overseen Within the Fund Complex: 2 Other Directorships Held Outside the Fund Complex: Vice-Chairman of the Pinellas County Educational Facilities Authority Peter B. Wells, age 49 Current Positions Held with the Funds: Trustee Term of Office and Length of Time Served: Indefinitely until successor is elected. Trustee since May 2000. Principal Occupations During the Past Five Years: Certified Public Accountant, Wells, Houser, Schatzel & Thomas, P.A. Number of Portfolios Overseen Within the Fund Complex: 2 Other Directorships Held Outside the Fund Complex: None