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...................................... (351) (121,642)
Increase in net assets from operations................... $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 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 $397,983
for the ShortTerm Fund, which consists of aggregate gross unrealized
appreciation and (depreciation) of $441,741 and ($43,758), 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>
*Total return not annualized for periods less than one year.
<F2>
**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>
*Total return not annualized for periods less than one year.
<F2>
**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