<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act File Number 811-3942
--------
LORD ABBETT TAX-FREE INCOME FUND, INC.
---------------------------------------
(Exact name of registrant as specified in charter)
90 Hudson Street Jersey City, NJ 07302-3973
-------------------------------------------
(Address of principal executive offices) (zip code)
Christina T. Simmons, Vice President and Assistant Secretary
90 Hudson Street Jersey City, New Jersey 07302-3973
---------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 201-6984
--------------
Date of fiscal year end: 9/30
----
Date of reporting period: 3/31/2003
---------
<Page>
ITEM 1: Report to Shareholders.
<Page>
[LORD ABBETT LOGO]
2003
SEMI-
ANNUAL
REPORT
LORD ABBETT
TAX-FREE INCOME FUND
TAX-FREE INCOME TRUST
NATIONAL TAX-FREE FUND
CALIFORNIA TAX-FREE FUND
CONNECTICUT TAX-FREE FUND
HAWAII TAX-FREE FUND
MINNESOTA TAX-FREE FUND
MISSOURI TAX-FREE FUND
NEW JERSEY TAX-FREE FUND
NEW YORK TAX-FREE FUND
TEXAS TAX-FREE FUND
WASHINGTON TAX-FREE FUND
FLORIDA TAX-FREE TRUST
GEORGIA TAX-FREE TRUST
MICHIGAN TAX-FREE TRUST
PENNSYLVANIA TAX-FREE TRUST
FOR THE SIX MONTHS ENDED MARCH 31, 2003
<Page>
(Unaudited)
- --------------------------------------------------------------------------------
LORD ABBETT TAX-FREE INCOME FUND AND LORD ABBETT TAX-FREE INCOME TRUST
SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED MARCH 31, 2003
DEAR SHAREHOLDERS: We are pleased to provide you with this overview of the
Fund's and Trust's performance for the six months ended March 31, 2003. On this
page, we discuss the factors that influenced performance.
Thank you for investing in Lord Abbett Mutual Funds. We value the trust that
you place in us and look forward to serving your investment needs in the years
to come.
BEST REGARDS,
/s/ Robert S. Dow
ROBERT S. DOW
CHAIRMAN
- --------------------------------------------------------------------------------
MARKET REVIEW
While geopolitical uncertainties were the key drivers of financial markets
in general during the period, tax-exempt municipal bond markets also faced a mix
of fundamental challenges.
This was particularly the case on the supply side, where tax-exempt bond
issuance was robust. States seeking to take advantage of historically low
borrowing costs and eager to make up for budget shortfalls were a large factor
in the issuance numbers, as were a few very large deals. In November 2002,
California brought to market the largest single municipal transaction in U.S.
history -- an unprecedented $11.95 billion power-revenue bond issue.
On the demand side, institutional buyers were attracted to the relative
value of municipals compared with Treasuries. Retail buyers bought
intermittently when yields were attractive, but sold just as quickly when yields
fell. Overall, the municipal market was uncharacteristically volatile in the
period.
PORTFOLIO PERFORMANCE
Given this environment, both the Fund and the Trust benefited from portfolio
structures designed to minimize volatility. Contributing to performance were the
portfolios' holdings in essential service revenue bonds, which outperformed
tax-based general obligation bonds, as tax revenues declined in the economic
slowdown. Insured bonds also added to performance. Historically, in difficult
times, insured bonds have retained more of their market value than comparable
uninsured bonds. From our perspective, bond insurance provides an additional
safety net to bonds that already meet our standards.
Detracting from performance was the portfolios' exposure to pre-refunded
bonds,(1) a sector of the municipal bond market that we feel is an important
component of a defensive position.
(1) Pre-refunded bonds are older, tax-free bonds that typically pay coupons
higher than current market rates and that have been refinanced or "prepaid" by
the proceeds of a second bond issue. The proceeds of this second issuance are
used to "call" or pay off the original issue at its first call date. Until that
time, the monies are held in escrow and are usually invested in U.S. Treasuries.
As a result, pre-refunded bonds are generally deemed to have virtually no
default risk. Typically, when a bond becomes pre-refunded it appreciates in
value because of its higher credit quality and marketability.
1
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 97.16%
EDUCATION 10.72%
Athens GA Hsg Auth Student
Hsg Lease Rev Univ of Georgia East(2) 5.00% 12/1/2033 AAA $ 4,400 $ 4,463,712
Clark-Pleasant IN Inter Sch
First Mtg(12) 5.00% 1/15/2027 AAA 2,250 2,286,405
Delaware St Econ Dev Auth Rev
DE Tech Pk Univ De Proj(2) 6.00% 2/1/2021 AAA 900 1,021,509
District of Columbia Rev
James F Oyster Elem Sch Pilot(1) 6.25% 11/1/2021 A 450 492,660
District of Columbia Rev Univ
George Washington(12) 5.125% 9/15/2031 AAA 5,000 5,101,200
Fairmont St College W VA Ser B(6) 5.25% 6/1/2022 Aaa 2,130 2,237,714
Glendale AZ Ind Dev Auth
Midwestern Univ Ser A 5.875% 5/15/2031 BBB+ 1,000 1,033,780
Glendale AZ Ind Dev Auth
Midwestern Univ Ser A 5.75% 5/15/2021 BBB+ 1,000 1,075,540
IA Higher Ed Ln Auth Rev Prv
Clg Fac Central College Pj(3) 5.45% 10/1/2026 AA 250 257,360
IA Higher Ed Ln Auth Rev
Warthburg College(1) 5.50% 10/1/2033 A 1,500 1,558,440
Indiana St Ed Fac Auth Rev 6.65% 3/1/2019 Aaa 10,740 11,428,004
Louisiana St Univ & Agric &
Mech Clg Hlth Sciences Ctr Pj(12) 6.375% 5/1/2031 AAA 2,290 2,618,271
MA St Dev Fin Agy Rev Boston
Univ Ser P 5.375% 5/15/2039 A3 1,000 1,009,780
MA St Dev Fin Agy Rev Boston
Univ Ser P 6.00% 5/15/2059 A3 1,000 1,101,170
New Jersey St Ed Fac Auth
Princeton Theological Seminary 5.00% 7/1/2026 AAA 650 669,396
New York St Dorm Auth Rev
Fashion Inst Tech(9) 5.50% 7/1/2030 AAA 400 425,068
Oregon St Hlth Hsg Ed & Cul
Fac Auth Reed Clg Pj Ser A 5.75% 7/1/2032 AA- 3,800 4,113,234
Rhode Island St Hlth & Ed
Bldg Corp Rev Hgh Ed Fac Brown Univ 6.00% 9/1/2025 AA+ 7,070 7,708,562
State Univ Iowa Univ Rev S.U.I. 5.00% 9/1/2028 AA 145 145,967
TN St Sch Brd Auth Higher Ed
Fac Ser A 5.625% 5/1/2030 AA- 150 159,566
TN St Sch Brd Auth Higher Ed
Fac Ser A(9) 5.125% 5/1/2021 AAA 615 640,572
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Tulsa OK Ind Auth Rev Ser A(12) 5.375% 10/1/2020 Aaa $ 3,170 $ 3,382,168
Univ Central AR Rev Hsg Sys(9) 6.50% 1/1/2031 AAA 2,425 2,803,154
Univ NC Univ Rev Comp Int Util Sys Zero Coupon 8/1/2021 Aa1 2,075 865,234
Univ VT & St Agric College
Univ VT(2) 5.125% 10/1/2037 AAA 1,150 1,179,107
University Cincinnati OH(6) 4.50% 6/1/2026 AAA 5,000 4,838,900
Virginia St Pub Sch Auth Ser A 6.20% 8/1/2014 Aa1 1,450 1,565,232
West Virginia Univ Rev Univ
Sys WV Pj Ser A(2) Zero Coupon 4/1/2024 AAA 2,880 982,224
West Virginia Univ Rev Univ
Sys WV Pj Ser A(2) Zero Coupon 4/1/2026 AAA 800 243,528
--------------
TOTAL 65,407,457
--------------
GENERAL OBLIGATION 16.35%
Akron OH Impt 5.80% 11/1/2020 AA- 575 640,734
Athens OH City Sch Dist Fac
Constr & Impt(9) 6.00% 12/1/2024 AAA 500 569,440
Bessemer AL School Warrants(2) 5.60% 2/1/2030 Aaa 2,000 2,139,140
Bremerton WA(2) 5.25% 12/1/2027 Aaa 1,000 1,039,100
California St Veterans(12) 5.00% 2/1/2031 AAA 10,000 10,131,100
Canton OH Sch Dist Ser A(12) 5.625% 12/1/2023 AAA 2,900 3,148,356
Clear Creek CO Sch Dist # Re
I Ref(9) 5.00% 12/1/2019 AAA 650 687,206
Culpeper Cnty VA Sch(9) 6.00% 1/15/2021 AAA 690 782,660
Dallas TX 5.75% 2/15/2020 AAA 1,615 1,789,291
Delaware Valley PA Regl Fin
Auth Loc Govt Rev Ser C(2) 7.75% 7/1/2027 AAA 1,000 1,434,680
Fairfield OH City Sch Dist
Ref Sch Impt(6) 5.375% 12/1/2020 AAA 1,410 1,516,441
Foothill De Anza CA Cmnty
College Dist Cap Apprec(12) Zero Coupon 8/1/2030 AAA 4,505 1,050,296
Georgetown Cnty SC Sch Dist(9) 5.25% 3/1/2020 AAA 2,485 2,628,136
Harris Cnty TX Senior Lien Toll(9) 5.125% 8/15/2032 AAA 3,000 3,054,540
Huntsville AL Cap Impt Wts Ser A(2) 5.00% 2/1/2023 AAA 1,000 1,027,290
Jefferson Cnty AL Sch Warrants(9) 5.50% 2/15/2020 AAA 1,000 1,073,710
Josephine Cnty OR Unit Sch
Dis Three Rivs(9) 5.00% 6/15/2020 Aaa 800 833,248
Lake Orion MI Cmnty Sch Dist Ser B 5.25% 5/1/2025 AAA 4,900 5,066,453
Linn Cnty OR Sch Dist #55
Sweet Home(9) 5.50% 6/15/2020 AAA 1,000 1,086,440
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Linn Cnty OR Sch Dist #55
Sweet Home(9) 5.50% 6/15/2025 AAA $ 2,245 $ 2,397,368
Los Angeles Calif Uni Sch
Dist Ser A(12) 4.75% 1/1/2028 AAA 3,000 2,995,470
Marion OH City Sch Dist Sch
Fac Constr & Impt(9) 5.625% 12/1/2022 AAA 500 546,430
Morgan Cnty AL Brd Ed Cap Outlay(9) 4.50% 3/1/2028 Aaa 1,000 955,240
Morgan Cnty AL Brd Ed Cap
Outlay Wts(9) 4.50% 3/1/2025 Aaa 1,500 1,447,245
Multnomah Clackamas Cntys OR
Sch Dist #10 Gresham Barlow(9) 5.00% 6/15/2021 AAA 200 207,476
New York NY Ser A 6.00% 5/15/2030 A 2,175 2,344,802
New York St Ser A 4.50% 3/15/2033 AA 5,000 4,694,950
Omaha NE Ser B 5.25% 12/1/2025 AAA 11,900 12,040,539
Oregon St Alternate Energy Pj
Ser A AMT 5.00% 1/1/2015 AA 1,415 1,497,311
Oregon St Alternate Energy Pj
Ser A AMT 5.10% 1/1/2017 AA 980 1,020,474
Oregon St Alternate Energy Pj
Ser A AMT 5.05% 1/1/2016 AA 1,795 1,875,775
Paw Paw MI Pub Sch Dist Sch
Bldg & Site 6.00% 5/1/2030 AAA 550 612,188
Pennridge PA Sch Dist(12) 5.00% 2/15/2029 Aaa 1,160 1,180,741
Philadelphia PA Sch Dist Ser A(9) 5.75% 2/1/2030 AAA 1,200 1,312,860
Pittsburgh CA Redev Agy Los
Medanos Cmty Dev Proj(2) Zero Coupon 8/1/2028 AAA 2,385 612,492
Powell Ohio(6) 5.50% 12/1/2032 AAA 1,280 1,368,960
Puerto Rico Comwlth Pub Impt
Pub Impt-Ser A(12)(18) 5.50% 7/1/2029 AAA 1,000 1,149,650
Richmond VA(9) 5.50% 1/15/2018 AAA 500 550,560
South Wash Cnty MN Indpt Sch
Dist #833 Ser A(12) 5.50% 2/1/2018 AAA 5,065 5,559,141
South Wash Cnty MN Indpt Sch
Dist #833 Ser A(12) 5.50% 2/1/2019 AAA 2,990 3,264,811
Sunman Dearborn IN Inter Sch
Bldg Corp First Mtg(6) 5.00% 1/15/2021 AAA 1,105 1,143,023
Teays Valley OH Loc Sch Dist
Sch Fac Constr 2 Impt(6) 5.375% 12/1/2020 Aaa 500 534,065
Texas St Wtr Dev Brd 7.15% 8/1/2035 Aa1 1,915 2,049,548
Washtenaw Cnty MI Multi Lake
San Sew Sys Sylvan Twp Wtr(12) 4.75% 5/1/2021 AAA 700 711,865
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Weber Cnty UT Sch Dist Ser B 5.00% 6/15/2021 Aaa $ 1,485 $ 1,533,292
West Muskingum OH Loc Sch
Dist Sch Facs Constr & Imp(6) 4.50% 12/1/2026 Aaa 500 485,090
West Virginia St Ser D(6) 6.50% 11/1/2026 AAA 2,000 2,370,580
Whitehall MI Dist Sch 5.50% 5/1/2019 AAA 1,400 1,524,642
Wood Cnty OH Pub Libr Impt(12) 5.875% 12/1/2022 Aaa 1,000 1,121,700
Wyandotte Cnty KS Sch 204
Bonner Springs Ser A(9) 5.60% 9/1/2020 Aaa 855 932,224
--------------
TOTAL 99,738,773
--------------
HEALTHCARE 13.39%
Abag Fin Auth for Nonprofit
Corp CA Ctfs Partn Woods Oblig(1) 6.20% 11/1/2029 A 1,000 1,096,110
AZ Hlth Fac Auth Rev AZ
Hlthcare Pooled Fing-C(6) 5.50% 6/1/2014 AAA 1,130 1,292,279
Cape Girardeau Cnty MO Ind
Dev Auth Health Care Facs Rev 5.75% 6/1/2032 A-(b) 500 506,705
Clackamas Cnty OR Hosp Fac
Legacy Hlth Sys(12)(18) 5.00% 2/15/2016 AAA 1,000 1,062,280
Clackamas Cnty OR Hosp Fac
Legacy Hlth Sys(12)(18) 5.00% 2/15/2015 AAA 1,600 1,708,944
Cobb Cnty GA Hosp Auth Rev
Ref & Impt-Rev Antic Ctfs(2)(c) 5.25% 4/1/2024 AAA 2,620 2,788,073
Colorado Hlth Fac Auth Rev
Catholic Hlth 5.25% 9/1/2024 AA 5,065 5,161,285
Colorado Hlth Fac Auth Rev
Portercare Adventis Hlth 6.625% 11/15/2026 A- 2,000 2,169,440
Delaware Cnty PA Auth Hosp
Rev Crozer Chester Med Ctr(1)(15) 5.375% 12/1/2018 A 2,625 2,701,964
Delaware St Hlth Fac Rev
Nanticoke Mem Hosp 5.625% 5/1/2032 A- 4,000 4,020,960
Erie Cnty Ohio Hosp Facs Rev
Firelands Regl Med Ctr Ser A 5.50% 8/15/2022 A 1,000 1,016,520
Fargo ND Health Sys Rev
Meritcare Obligated Group A(12) 5.375% 6/1/2027 AAA 1,000 1,031,900
Fargo ND Health Sys Rev
Meritcare Obligated Ser A(2) 5.125% 6/1/2027 AAA 2,905 2,980,617
Harris Cnty TX Hlth Fac Mem
Hermann Hlthcare Ser A 6.375% 6/1/2029 A 1,750 1,864,065
Highlands Cnty FL Fac Auth
Rev Hosp Adventist/Sunbelt Ser A 6.00% 11/15/2031 A- 2,750 2,889,370
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Jackson OH Hosp Fac Rev Cons
Hlth Sys Jackson Hosp(3) 6.125% 10/1/2023 AA $ 680 $ 754,011
Kentucky Economic Dev Fin
Auth Norton Hlthcare Inc Ser A(12) Zero Coupon 10/1/2025 AAA 4,300 1,325,690
Knox Cnty TN Health Edl & Hsg
Facs Brd Hosp Facs Rev Ref(9) Zero Coupon 1/1/2023 AAA 4,750 1,560,755
KS St Dev-Susan-Ser Z-KS
Susan B Allen Mem Hosp(3) 5.125% 12/15/2023 AA 1,025 1,040,980
Lauderdale Cnty & Florence AL
Hlthcare Rev Coffee Hlth Ser A(12) 6.00% 7/1/2029 AAA 1,000 1,123,480
Louisiana Pub Facs Auth Rev
Ochsner Clinic Ser A(12) 5.00% 5/15/2022 Aaa 1,000 1,024,690
Lubbock TX Hlth Fac Dev Corp
Rev Sears Plains Pj(10) 5.70% 1/20/2041 AAA 2,490 2,605,013
MD St Hlth & Higher Ed Fac
Auth Rev North Arundel Hosp 6.50% 7/1/2026 Baa1 1,000 1,081,920
MD St Hlth & Higher Ed Fac
Catholic Hlth Initiative Ser A 6.00% 12/1/2024 AA 100 108,283
MD St Hlth & Higher Ed Fac
Univ Maryland Med Sys 6.75% 7/1/2030 Baa1 1,950 2,166,197
Mesa AZ Ind Dev Auth
Discovery Hlth Sys Ser A(12) 5.75% 1/1/2025 AAA 750 813,158
Minneapolis & St. Paul MN Hsg
Redev Auth Hlthcare Sys Pj 6.90% 10/15/2022 BBB+ 700 717,899
Mississippi Hosp Equip & Fac
Forrest Cnty Auth Gen Hosp Pj(9) 6.00% 1/1/2030 Aaa 615 688,056
Missouri St Hlth & Ed Fac
Auth Rites PA-1049(2) 15.931% 6/1/2010 AAA 855 1,036,183
New Hampshire Hlth & Ed Fac
Auth Rev 6.00% 10/1/2024 A+ 250 262,050
New Hampshire Hlth & Ed Fac
Auth Rev Hlthcare Sys(1)(15) 6.00% 7/1/2022 A 1,750 1,869,823
New Hampshire Hlth & Ed Fac
Dartmouth-Hitchcock Oblig Gr(9) 5.50% 8/1/2027 AAA 3,500 3,731,035
New Hampshire Hlth & Ed Fac
Exeter Pj 5.75% 10/1/2031 A+ 1,550 1,589,277
New Hampshire St Hlth & Ed
Concord Hosp(9) 5.50% 10/1/2021 Aaa 710 764,528
NJ Hlthcare Fac Fin Auth Rev
Robert Wood Johnson Univ Hosp 5.75% 7/1/2031 A+ 700 738,038
NM St Hosp Equip Ln Council
Presbyterian Hlthcare Ser A 5.50% 8/1/2025 A+ 2,000 2,046,720
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
North Carolina Med Care Comm 5.50% 1/1/2020 A $ 565 $ 584,764
Orange Cnty FL Hlth Fac Auth
Rev Hosp Orlando Regl 5.75% 12/1/2027 A2 1,000 1,019,210
Oregon St Hlth Hsg Ed &
Cultural Fac Auth Rev(2) 5.25% 11/15/2019 AAA 2,000 2,158,080
Plymouth MN Hlth Fac Rev West
Hlth Pj Ser A(9) 6.125% 6/1/2024 AAA 2,990 3,187,041
Rhode Island St Hlth & Ed
Bldg RI Health 6.50% 8/15/2032 BBB 1,000 1,025,980
Rhode Island St Hlth & Ed
Bldg Roger Williams Rlty(7) 6.50% 8/1/2029 AAA 1,240 1,356,820
South Carolina Jobs Economic
Dev Auth Hosp Fac Rev 7.375% 12/15/2021 BBB 2,000 2,244,160
South Dakota St Hlth & Ed
Prairie Lakes Hlth 5.625% 4/1/2032 BBB+ 1,170 1,128,711
St. Cloud MN Hlthcare Rev
Hosp Oblig Group Ser A(9) 6.25% 5/1/2018 Aaa 3,320 3,854,918
Sullivan Cnty TN Hlth Ed &
Hsg Fac Brd Rev Hosp 6.25% 9/1/2022 BBB+ 2,000 2,049,060
Tyler TX Hlth Fac Dev Corp
Hosp Rev Mother Frances Hosp 6.00% 7/1/2027 Baa1 1,500 1,504,050
Wisconsin St Hlth & Ed Fac
Auth Rev Hess Mem Hosp Assn(1)(15) 7.875% 11/1/2022 A 1,775 1,947,175
Wisconsin St Hlth & Ed Fac
Auth Rev Wheaton Franciscan Sv(12) 6.50% 8/15/2011 AAA 315 319,757
--------------
TOTAL 81,718,024
--------------
HOUSING 6.54%
Colorado Hsg Fin Auth Multi
Fam Hsg Ser A AMT 6.80% 10/1/2037 AA+ 2,325 2,443,365
GA St Hsg & Fin Auth Rev Sing
Fam Mtg Ser A Sub A-2 AMT(7) 6.40% 12/1/2015 AAA 315 321,177
Idaho Hsg & Fin Assn SF Mtg AMT 5.25% 7/1/2033 Aaa 1,000 1,017,360
Idaho Hsg Agy Sing Fam Mtg
Ser F AMT(7) 7.45% 7/1/2015 Aaa 395 410,093
Illinois Hsg Dev Auth Multi
Fam Hsg Lawndale AMT(7) 6.80% 12/1/2016 AAA 1,000 1,067,210
Illinois Hsg Dev Auth Multi
Fam Hsg Lawndale AMT(7) 7.10% 12/1/2034 AAA 1,500 1,601,805
Kansas City MO Ind Dev Auth
No Oak Crossing Sr Ser A-1 AMT(2) 5.30% 12/1/2020 AAA 1,170 1,197,647
Kentucky Hsg Corp Hsg Rev Ser D AMT 5.25% 7/1/2022 AAA 500 514,795
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
MA St Hsg Fin Agy Hsg Rev
Rental Mtg Ser A AMT(2)(7) 7.35% 1/1/2035 AAA $ 1,385 $ 1,457,546
MA St Hsg Fin Agy Hsg Rev
Sing Fam Ser 29 AMT 6.75% 6/1/2026 AA 975 1,008,082
Maryland St Cmnty Dev Admin
Dept Hsg & Cmnty Dev Ser B AMT 5.375% 9/1/2022 Aa2 5,000 5,124,050
Maryland St Cmnty Dev Admin
Residential Ser F AMT 5.50% 9/1/2022 Aa2 2,500 2,582,050
Maryland St Cmnty Dev Admin
Residential Ser H AMT 5.20% 9/1/2022 Aa2 600 609,630
Maryland St Dev Admin Dept
Hsg & Cmnty Dev Sing Fam Ser 7 AMT 7.30% 4/1/2025 Aa2 55 55,139
Minneapolis St Paul MN Hsg
Fin Rev Sing Fam Mtg Ser AB AMT(11) 6.25% 11/1/2030 AAA 750 812,902
Minnesota St Hsg Fin Agy Sing
Fam Mtg Ser G-1 AMT 5.60% 7/1/2022 AA+ 485 504,400
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Hmownr Ln Ser B-1 AMT(11) 6.25% 3/1/2031 AAA 610 636,328
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Ser E-1 AMT(11) Zero Coupon 3/1/2029 AAA 1,655 406,998
Montana St Brd Hsg Sing Fam
Mtg Ser A-1(7) 6.05% 12/1/2037 AA+ 4,255 4,435,114
NE Invt Fin Auth Sing Fam
Ser D AMT(11)(17) 5.25% 9/1/2022 AAA 750 766,455
New Orleans LA Fin Auth Mtg
Rev Ser B-2 AMT(11) 6.00% 12/1/2018 Aaa 410 432,144
North Carolina Hsg Fin Agy
Sing Fam Rev Ser BB AMT 6.25% 3/1/2012 AA 940 982,958
Oklahoma Hsg Fin Agy Sing Fam
Mtg Ser B-1(11) 5.30% 9/1/2026 Aaa 155 160,462
Oklahoma Hsg Fin Agy Sing Fam Zero Coupon 3/1/2029 Aaa 5,695 1,381,778
Oklahoma Hsg Fin Agy Sing Fam
Rev Mtg Homeowner Ser B-1 Zero Coupon 3/1/2029 Aaa 3,735 893,300
Oklahoma Hsg Fin Agy Sing Fam
Rev Mtg Homeowner Ser D-2 AMT(11) Zero Coupon 9/1/2030 Aaa 3,355 620,876
Prince Georges Cnty MD Hsg
Single Fam Ser A AMT(11)(17) 6.15% 8/1/2019 AAA 80 85,026
Tennessee Hsg Dev Agy Mtg Fin Ser A 5.95% 7/1/2028 AA 1,075 1,094,963
Tennessee Hsg Dev Agy Mtg Fin
Ser A AMT 7.125% 7/1/2026 AA 120 124,128
Vermont Hsg Fin Agy Sing Fam
Hsg Ser 16A AMT(9) 5.50% 11/1/2021 AAA 3,405 3,505,448
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Washington St Hsg Fin Cmnty
Sing Fam Prog Ser A-2 AMT(11)(17) 6.30% 12/1/2027 Aaa $ 560 $ 583,688
West Virginia St Hsg Dev Fd
Hsg Fin Ser B AMT 5.25% 11/1/2018 AAA 2,345 2,392,088
Wyoming Cmnty Dev Auth Hsg
Rev Ser 2 AMT 6.35% 6/1/2029 AA 160 167,011
Wyoming Cmnty Dev Auth Hsg
Rev Ser 5 5.90% 6/1/2017 AA 500 532,330
--------------
TOTAL 39,928,346
--------------
INDUSTRIAL 4.34%
Clark Cnty NV Ind Dev Rev PA
Ser 349 RIBs 9.152% 10/1/2030 A 6,250 6,283,750
Clark Cnty NV Ind Dev Rev Ser
C AMT(2) 5.95% 12/1/2038 AAA 3,320 3,629,457
Connecticut St Dev Auth Solid
Wst Dsp Fac Rev Pfizer Inc AMT 7.00% 7/1/2025 AAA 2,500 2,733,950
Golden St Tob Securitization
Tobacco Avg Life 15.3 6.75% 6/1/2039 A1 5,250 4,877,092
Jacksonville FL Swr & Solid
Wst Disp Fac Rev Anheuser AMT 5.875% 2/1/2036 A+ 500 517,005
Moraine OH Solid Waste Disp
General Motors Corp Pj AMT 5.65% 7/1/2024 A3 450 438,556
Rhode Island St Eco Dev
Providence Place Mall(3) 6.125% 7/1/2020 AA 550 621,825
Texas City TX Ind Dev Corp
Marine Term Rev Arco Pipe Line 7.375% 10/1/2020 AA+ 650 831,279
Tobacco Settlement Fin Corp
Tobacco - Avg Life 15.5 yrs 6.75% 6/1/2039 A1 5,000 4,609,400
Wyandotte Cnty KS City KS
Univ Govt Ref GM Grp Pj 6.00% 6/1/2025 A3 1,900 1,998,420
--------------
TOTAL 26,540,734
--------------
LEASE 5.12%
Arizona ST Ctfs Partn Ser A(12) 5.00% 11/1/2020 AAA 200 209,352
Bemidji MN Lease Rev MN St
Bureau Criminal Appreh(12) 5.75% 12/1/2018 Aaa 555 622,227
Bemidji MN Lease Rev MN St
Bureau Criminal Appreh(12) 5.75% 12/1/2019 Aaa 315 352,469
Boise City ID Lease Rev Urban
Renewal ADA Cnty Courts(2) 6.25% 8/15/2019 AAA 7,385 8,612,313
Grand Rapids MI Pub Sch(12) 5.00% 11/1/2021 AAA 250 259,630
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Greenville Cnty SC Sch Dist
Installment Pur Ref Bldg 5.50% 12/1/2028 AA- $ 6,000 $ 6,273,060
Henrico Cnty VA Econ Dev Auth
Pub Fac Lease Rev Jail Pj 6.125% 11/1/2019 Aa1 1,000 1,165,070
Murray City UT Mun Bldg Auth
Ser A(2) 5.30% 12/1/2021 Aaa 2,925 3,164,090
Providence RI Redev Agy Rev
Pub Safety & Mun Bldgs Ser A(2) 5.75% 4/1/2029 Aaa 415 452,263
Puerto Rico Comwlth Ser A 5.50% 10/1/2040 AAA 1,000 1,077,460
Spartanburg Cnty SC Sch Dist
McCarthy Teszler Pj(13) 5.00% 3/1/2022 AAA 1,000 1,032,260
St Paul MN Port Auth Lease
Rev Office Bldg 5.00% 12/1/2022 AA+ 1,000 1,030,860
Union Cnty Impt Auth Rev
Lease-Madison Redev PJ(c) 5.00% 3/1/2025 Aa1 2,000 2,039,080
West Vy City Utah Mun Bldg(2) 5.50% 8/1/2027 AAA 1,000 1,061,340
Wyoming Bldg Corp Rev(2) 6.00% 10/1/2021 AAA 2,000 2,284,240
Wyoming Bldg Corp Rev(2) 6.00% 10/1/2019 AAA 1,425 1,637,539
--------------
TOTAL 31,273,253
--------------
MISCELLANEOUS 8.43%
AZ Tourism & Sports Auth Tax
Multipurpose Stadium(12) 5.375% 7/1/2022 Aaa 5,000 5,372,600
CO Ed & Cultural Fac Auth Rev
Colorado Public Radio 5.625% 7/1/2022 BBB 100 104,724
Dallas TX Area Rapid Tran Sr
Lien(2) 5.00% 12/1/2031 AAA 1,085 1,094,038
Florida St FL Dept of
Transportation 5.00% 7/1/2027 AA+ 3,500 3,570,070
George L Smith II GA World
Congress Ctr Auth Rev AMT(12) 5.75% 7/1/2015 AAA 1,500 1,670,835
George L Smith II GA World
Congress Ctr Rev AMT(12) 5.50% 7/1/2020 AAA 700 745,731
Hampton VA Convention Ctr Rev(2) 5.125% 1/15/2028 AAA 5,000 5,145,000
Hampton VA Convention Ctr Rev(2) 5.25% 1/15/2023 AAA 1,000 1,050,670
Indiana Bd Bk Rev St
Revolving Fund Prog Ser A 6.75% 2/1/2017 AAA 500 551,085
Louisiana Loc Govt Envir Fac
Pkg Fac Garage Pj Ser A(2) 5.375% 10/1/2026 AAA 1,500 1,579,905
Manchester NH Hsg & Redev
Auth Rev Ser B(1) Zero Coupon 1/1/2022 A 4,640 1,591,752
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Manchester NH Hsg & Redev
Auth Rev Ser B(1) Zero Coupon 1/1/2026 A $ 5,140 $ 1,330,849
Manchester NH Hsg & Redev
Auth Rev Ser B(1) Zero Coupon 1/1/2023 A 4,340 1,379,512
Manchester NH Hsg & Redev
Auth Rev Ser B(1) Zero Coupon 1/1/2019 A 2,170 926,395
Manchester NH Hsg & Redev
Auth Rev Ser B(1) Zero Coupon 1/1/2029 A 3,040 653,722
MS Dev Bk Spl Oblig Cap Pjs &
Equip Acquisition(2) 5.00% 7/1/2024 AAA 2,000 2,093,700
New Hanover Cnty NC Ctfs
Partn New Hanover Cnty Projs(2) 4.625% 3/1/2028 AAA 1,200 1,178,184
Omaha Convention Hotel Corp.
Rite-PA 1078(2) 8.535% 4/1/2010 AAA 5,000 5,286,600
Pittsburgh & Allegheny Cnty
PA Auditorium Regl Asset Dist(2) 5.00% 2/1/2029 AAA 5,000 5,073,200
Southwest Houston TX Redev
Auth Tax Increment Contract(3)(c) 4.75% 9/1/2023 AA 1,000 962,020
St. Louis MO Ind Dev Auth Rev
Kiel Ctr Multi Purp Arena AMT 7.875% 12/1/2024 BBB(a) 3,500 3,564,435
Tobacco Settlement Fing Corp.
Asset-Bkd-Ser A 6.50% 6/1/2033 A1 4,000 3,665,800
Village Ctr Cmnty Dev Dist FL
Ser A(12) 5.00% 11/1/2032 AAA 1,000 1,019,350
Virginia St Pub Bldg Auth Pub
Fac Rev Ser A 5.75% 8/1/2020 AA+ 600 668,502
Westminister CO Sales & Use
Tax Ref Rev(2) 5.25% 12/1/2022 AAA 1,090 1,156,926
--------------
TOTAL 51,435,605
--------------
POWER 2.89%
Grant Cnty WA Pub Util Dist
#2 Pr Rap Hydro 2nd Ser B AMT(12) 5.375% 1/1/2018 AAA 300 317,385
HI St Dept Bdg & Fin Spl Purp
Mtg Rev HI Elec Co Ser A AMT(12) 6.60% 1/1/2025 AAA 135 145,894
Long Island Pwr Auth NY Elec
Rites PA 686 RIBs(12)(18) 9.389% 12/1/2022 AAA 5,500 5,644,540
Los Angeles CA Wtr & Pwr Rev
Pwr Sys Ser A-A1(9) 5.25% 7/1/2020 AAA 2,600 2,775,344
Milwaukee WI Loc Dist Heating
Fac Rev WI Elec Pwr Co Pj AMT 6.85% 10/1/2021 Aa3 4,100 4,180,155
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
North Carolina Muni Pwr Agy
#1 Catawba Elec Rev(1)(15) 5.00% 1/1/2015 A $ 3,475 $ 3,525,735
South Carolina St Pub Svc(9) 5.25% 1/1/2019 AAA 950 1,025,877
--------------
TOTAL 17,614,930
--------------
PRE-REFUNDED 10.14%
Baltimore MD Rev Water Pj Ser A(9) 6.00% 7/1/2018 AAA 285 337,229
Baltimore MD Rev Water Pj Ser A(9) 6.00% 7/1/2020 AAA 275 325,397
Cobb Cnty GA Kennestone Hosp
Auth Rev Ctfs Ser 86 A ETM(12) Zero Coupon 8/1/2015 AAA 1,000 505,300
Cumberland Cnty NC Ctfs Partn
Civic Ctr Proj Ser A(2) 6.40% 12/1/2019 AAA 2,800 3,097,556
Delaware Transn Auth Trans
Sys Rev Sr 6.00% 7/1/2020 AA 5,965 7,058,146
Detroit MI Wtr Supply Sys Sr
Lien Ser A(6) 5.75% 7/1/2028 AAA 1,500 1,764,045
Fayette Cnty GA Pub Fac Auth
Criminal Justice Center Pj 6.00% 6/1/2030 AA 3,500 4,162,830
Glendale AZ Dev Auth Ed Fac
Rev Amer Graduate Sch Intl(5) 7.125% 7/1/2020 AAA 1,000 1,137,160
Houston TX Wtr & Swr Sys Rev
Ser D(12) 6.125% 12/1/2029 AAA 1,400 1,514,968
Indiana St Ed Fac Auth Rev 6.65% 3/1/2019 AAA 860 920,415
Iowa Fin Auth Rev ETM 5.25% 8/15/2021 Aa2 235 250,573
Iowa Fin Auth Rev IA St
Revolving Fd Comb Ser 6.25% 5/1/2024 A+ 3,400 3,619,878
Kilmarnock VA Pub Impt 6.25% 3/1/2027 AAA 1,430 1,636,363
Lane Cnty OR Sch Dist #052 5.625% 6/15/2020 Aa3 800 926,624
Lauderdale Cnty & Florence AL
Hlthcare Auth Rev(12) 5.75% 7/1/2019 AAA 2,000 2,316,480
Linn Cnty OR Cmnty Sch Dist
No 9 Lebanon(12) 6.125% 6/15/2025 AAA 5,000 5,951,300
Massachusetts St Cons Ln-Ser B 6.00% 6/1/2016 AAA 3,300 3,898,587
Missouri St Envr Impt & Enrg
Prerefunded St Revolv FD Ser B 7.20% 7/1/2016 Aaa 1,965 2,150,948
New York St Urban Dev Corp
Rev Correctl Fac(9) 5.125% 1/1/2022 AAA 5,000 5,622,500
NJ St Transn Tr Fd Auth
Transn Sys Ser B 6.00% 6/15/2019 AA- 2,550 3,014,763
North Providence RI Ser A(12) 6.125% 7/1/2016 AAA 1,410 1,661,262
Ohio St 6.20% 8/1/2013 AA+ 750 846,855
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Phoenix AZ Civic Impt Corp (6) 6.00% 7/1/2024 AAA $ 2,400 $ 2,867,592
Puerto Rico Comwlth Pub Impt RIBs 10.239% 7/1/2029 A- 750 911,475
University NM Tech Dev Corp
Lease Rev Univ Ctr Res Ser A(12) 6.55% 8/15/2025 AAA 1,410 1,541,299
Weber Cnty UT Mun Bldg Auth
Lease Rev(3) 7.50% 12/15/2019 AAA 2,250 2,535,165
White Hsg Util Dist TN
Robertson/Sumner Cntys Wtr/Swr(9) 6.00% 1/1/2026 Aaa 1,090 1,277,371
--------------
TOTAL 61,852,081
--------------
RESOURCE RECOVERY 3.26%
Cobb Cnty GA Solid Waste Mgmt
Auth Rev AMT 6.40% 1/1/2015 AAA 900 952,614
Fairfax Co VA Wtr Auth Wtr Rev Ref 5.00% 4/1/2027 AAA 3,000 3,060,990
Missouri St Envr Impt & Enrg
Unrefunded Bal St Revolving B 7.20% 7/1/2016 Aaa 1,285 1,398,131
MS Dev Bk Spl Oblig Waste Wtr
& Solid Waste Mgmt-A(9) 5.00% 2/1/2028 AAA 1,000 1,017,030
Richmond VA Pub Util Rev Ref(9) 5.00% 1/15/2033 AAA 10,000 10,184,300
Sonoma Cnty CA Wtr Agy Wtr
Rev Ser A(12) 5.00% 7/1/2032 AAA 3,200 3,274,432
--------------
TOTAL 19,887,497
--------------
SPECIAL TAX 3.11%
Cache Cnty UT Sales Tax Rev(6) 5.00% 12/15/2022 AAA 1,470 1,507,397
Illinois Sports Fac Auth St
Tax Supported(2) 5.00% 6/15/2032 AAA 4,830 4,891,293
Larimer Cnty CO Sales & Use
Tax Rev Fairgrounds & Events(12) 5.00% 12/15/2019 AAA 750 793,065
Los Angeles CA Cmnty Facs
Dist Playa Vista(2)(c) 4.50% 9/1/2021 AAA 3,825 3,801,170
Memphis-Shelby Cnty TN Sports
Memphis Arena Pj(2) 5.25% 11/1/2023 AAA 1,765 1,854,397
Portland OR Urb Ren & Redev
Downtown Waterfront Ser A(2) 5.75% 6/15/2019 Aaa 1,500 1,692,060
Portland OR Urb Ren & Redev
Downtown Waterfront Ser A(2) 5.50% 6/15/2020 Aaa 650 705,120
Salida CA Area Pub Fac Fin
Agy Cmnty Fac Dist Spl Tax #1998-1(9) 5.25% 9/1/2028 AAA 355 368,469
San Juan Cnty NM Tax / Motor
Ref & Impt(12)(18) 5.25% 5/15/2022 AAA 390 411,594
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
UT Tran Auth Sales Tax Rev Ser A(9) 5.00% 6/15/2025 AAA $ 1,000 $ 1,014,520
West Virginia St Pub Svc of Pj(12) 5.75% 6/1/2025 AAA 1,800 1,964,412
--------------
TOTAL 19,003,497
--------------
TRANSPORTATION 5.83%
Billings MT Arpt Rev AMT(12) 6.10% 7/1/2016 AAA 190 217,200
Billings MT Arpt Rev AMT(12) 6.20% 7/1/2020 AAA 2,775 3,148,211
Colorado Springs CO Arpt Rev
Ref Sys Ser A AMT(9) 5.00% 1/1/2022 AAA 2,000 1,983,040
Dallas TX Area Rapid Tran Sr
Lien(2) 5.00% 12/1/2026 AAA 1,000 1,011,850
Denver CO City & Cnty Arpt
Ser A AMT(6) 5.00% 11/15/2017 AAA 1,000 1,029,580
Greater New Orleans Expwy Ref
& Impt(2)(c) 5.00% 11/1/2033 AAA 4,580 4,651,311
Houston TX Arpt Sys Rev Sub
Lien Ser A AMT(9) 5.70% 7/1/2030 AAA 2,615 2,719,051
Houston TX Arpt Sys Rev Sub
Lien Ser A AMT(6) 5.50% 7/1/2012 AAA 1,610 1,774,123
Metropolitan Trans Auth NY
Rev Ser U FGIC-TCRS(6)(14) 5.125% 11/15/2031 AAA 5,000 5,123,750
Miami-Dade Cnty FL Aviation
Ser A AMT(9) 5.125% 10/1/2035 AAA 3,000 3,003,330
Michigan St Trunk Line Ref
Ser A(12) 4.75% 11/1/2020 AAA 800 815,784
NW Pkwy Pub Hwy Auth CO Rev
Cap Apprec Sr Ser B(9) Zero Coupon 6/15/2028 AAA 10,000 2,301,500
Port Kalama WA Rev Ser B AMT 5.625% 12/1/2015 A3 1,025 1,061,008
Puerto Rico Comwlth Hwy &
Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 1,500 1,619,100
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(9)(16) 10.58% 7/1/2026 Aaa 500 593,410
Rhode Island St Eco Corp Arpt
Rev Ser B(6) 6.00% 7/1/2028 AAA 1,200 1,343,304
Rhode Island St Eco Corp Arpt
Rev Ser B(6) 6.00% 7/1/2020 AAA 1,210 1,377,258
San Francisco CA City & Cnty
Arpt Lease SFO Fuel Ser A AMT(9) 6.125% 1/1/2027 AAA 500 553,295
St. Louis MO Arpt Rev Airport
Dev Prog Ser A(12) 5.00% 7/1/2020 AAA 1,200 1,231,716
--------------
TOTAL 35,557,821
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
WATER/SEWER 7.04%
Arkansas St Cmnty Wtr Sys Pub
Wtr Auth Rev Ref-Ser B(12) 5.00% 10/1/2027 AAA $ 1,125 $ 1,144,564
Atlanta GA Wtr & Waste Wtr
Rev Ser A(12) 5.00% 11/1/2039 AAA 5,000 5,054,350
Austion TX Wtr & Waste System
Ref-Ser B(9) 5.25% 5/15/2031 AAA 1,030 1,062,898
Brighton Township MI San Sew
Drainage Dist(9) 5.25% 10/1/2018 AAA 1,615 1,707,539
Broad River NC Wtr Auth(12) 5.375% 6/1/2026 Aaa 400 423,856
Chisholm Creek Util Auth KS
Bel Aire & Park City KS Proj(12) 5.25% 9/1/2020 Aaa 320 343,827
Chisholm Creek Util Auth KS
Bel Aire & Park City KS Proj(12) 5.25% 9/1/2023 Aaa 445 468,612
Chisholm Creek Util Auth KS
Bel Aire & Park City KS Proj(12) 5.25% 9/1/2021 Aaa 1,025 1,094,762
Clarksburg WV Wtr Rev(6) 5.25% 9/1/2019 AAA 1,500 1,612,095
Detroit MI Wtr Supply Sys SR
Lien-Ser A(12) 5.00% 7/1/2034 AAA 4,000 4,038,040
Evansville IN Sew Wks Rev
Ref-Ser A(2) 5.00% 7/1/2023 AAA 1,000 1,025,740
Fort Lauderdale FL Wtr & Swr(12) 4.625% 9/1/2028 AAA 3,000 2,940,540
Gainesville GA Wtr & Sew Rev(9) 5.375% 11/15/2020 AAA 2,900 3,152,822
Gautier MI Util Dist Util Sys
Rev Ref(6) 5.125% 3/1/2019 Aaa 425 447,814
Grand Forks ND Wtr Rev Ser D(12) 5.375% 9/1/2020 Aaa 1,150 1,220,955
Iowa City IA Swr Rev(9) 5.375% 7/1/2020 Aaa 620 657,863
Kansas St Dev Fin Auth Rev
Pub Wtr Supply Revolving Ln-2 4.75% 4/1/2018 Aa3 1,180 1,218,621
Lexington Cnty SC JT Mun Wtr
& Swr Commn(2) 4.625% 6/1/2033 AAA 2,000 1,950,620
Midlothian TX Wtr Dist(9) Zero Coupon 9/1/2022 AAA 2,000 739,760
New York NY City Muni Wtr Fin
Auth Wtr & Swr Sys Rev Ser A 5.50% 6/15/2023 AA 1,050 1,100,852
Oregon St Brd Bk Rev OR Econ
Cmnty Dev Dept Ser A(12) 5.50% 1/1/2017 AAA 570 621,465
Paragould AR Wtr Swr & Elec Rev(2) 5.65% 12/1/2025 AAA 615 662,429
Rockingham NC Ctfs Partn(2) 5.00% 4/1/2020 AAA 1,205 1,268,937
South Dakota Conservancy Dist(2) 5.00% 8/1/2022 Aaa 2,700 2,768,202
South Dakota Conservancy Dist
Rev Clean Wtr St Revolving Fd(2) 5.00% 8/1/2022 Aaa 500 513,325
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Utah Wtr Fin Agy Rev Pooled
LN Fing Prog(2) 5.125% 7/1/2023 Aaa $ 1,000 $ 1,028,470
Whittier CA Util Auth Wtr Rev(12) 5.00% 6/1/2033 AAA 1,000 1,017,480
WV St Wtr Dev Auth Rev Loan
Prog III Ser A AMT(2) 6.25% 7/1/2030 AAA 1,470 1,629,407
WV Wtr Dev Auth Infrastucture
Rev Ser A(9) 5.625% 10/1/2026 AAA 1,555 1,650,010
York Cnty VA Swr Rev 5.875% 6/1/2024 Aa3 330 362,832
--------------
TOTAL 42,928,687
--------------
TOTAL MUNICIPAL BONDS (Cost $561,184,933) 592,886,705
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 4.70%
FINANCIAL SERVICES 4.70%
Dreyfus Municipal Cash Management Plus (Cost $28,675,844) 28,676 28,675,844
==============
TOTAL INVESTMENTS 101.86% (Cost $589,860,777) $ 621,562,549
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
---------
MUNICIPAL BONDS 96.61%
EDUCATION 10.16%
Abag Fin Auth For Nonprofit
Corps CA Rev Sch of Mech Arts 5.25% 10/1/2026 A3 $ 500 506,205
Abag Fin Auth For Nonprofit
Corps CA Rev Sch of Sacred Hrt 6.45% 6/1/2030 Baa3 1,000 1,076,430
Baldwin Park CA Uni Sch Dist
Election 2002(9)(c) 5.00% 8/1/2027 AAA 1,000 1,020,150
CA Ed Fac Auth Rev
Loyola-Marymount Univ(12) 5.00% 10/1/2024 Aaa 775 795,631
CA Ed Fac Auth Rev Pepperdine Univ 5.75% 9/15/2030 A1 2,000 2,148,320
CA Ed Fac Auth Rev Res Ctfs
Ser 113 RIBs 8.975% 12/1/2027 AAA 2,525 2,686,903
CA Ed Fac Auth Rev Scripps College 5.25% 8/1/2026 A1 1,145 1,168,908
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
CA Ed Fac Auth Rev Scripps College 5.25% 8/1/2021 A1 $ 425 $ 440,924
CA Ed Fac Auth Rev Univ of
Southern CA 5.50% 10/1/2027 AA+ 1,160 1,240,144
California Ed Fac Auth Rev
Univ of San Diego(2) 5.00% 10/1/2028 Aaa 1,250 1,275,138
California Ed Fac Auth Rev
Univ of San Francisco(12) 6.00% 10/1/2026 AAA 2,565 2,891,242
California Ed Fac Auth Rev
Univ of San Francisco(12) 6.00% 10/1/2016 AAA 75 85,925
California St Univ Fndtn Rev
Monterey Bay(12) 5.30% 6/1/2022 AAA 250 264,920
California St Univ Fndtn Rev
Sacramento Auxiliary Ser A(12) 5.50% 10/1/2027 AAA 400 432,236
California St Univ Rev &
Colleges Hsg Sys(6) 5.90% 11/1/2021 AAA 1,045 1,166,732
California Statewide Cmntys
Dev Auth Aux Fndtn CA St Univ(12) 5.20% 6/1/2024 AAA 525 550,462
Sonoma Cnty CA Jr College
Dist Election 2002-Ser A(9) 5.25% 8/1/2022 AAA 1,140 1,208,001
University CA Rev Multi Purp Ser K 5.25% 9/1/2024 AA 1,545 1,608,021
--------------
TOTAL 20,566,292
--------------
GENERAL OBLIGATION 28.41%
Anaheim CA Unified High Sch
Dist Ser A(9) 5.00% 8/1/2025 AAA 785 804,358
Antelope Valley CA Unified
High Sch(12) 5.00% 8/1/2022 AAA 2,180 2,265,456
Barstow CA Unified Sch Dist
Ser A(6) 5.00% 8/1/2026 Aaa 2,500 2,557,850
Berryessa CA Unified Sch Dist
Election of 1999 Ser B(9) 5.25% 8/1/2019 AAA 1,015 1,097,854
California St(6) 5.25% 9/1/2030 AAA 990 1,019,334
California St Veterans(12) 5.00% 2/1/2022 AAA 2,700 2,783,403
California St Veterans(12)(18) 5.00% 2/1/2029 AAA 3,000 3,049,050
California St Veterans Ser B AMT 5.70% 12/1/2032 AA- 715 732,761
Capistrano CA Unified Sch
Dist Fac Impt Dist #1 Ser A(6) 6.00% 8/1/2024 AAA 2,500 2,816,425
Centinela Valley CA High Sch
Election 2000 Ser D(6) 5.25% 8/1/2024 AAA 1,145 1,210,391
Centralia CA Sch Dist
Election of 2002 Ser A(6) 5.00% 8/1/2024 AAA 580 594,071
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Centralia CA Sch Dist
Election of 2002 Ser A(6) 5.00% 8/1/2023 AAA $ 1,070 $ 1,101,255
Corona-Norco CA Uni Sch Dist
Cap Apprec-Ser D(9) Zero Coupon 9/1/2027 AAA 5,085 1,391,408
El Monte CA City Sch Dist Ser A(9) 6.25% 5/1/2025 AAA 1,230 1,405,103
Escondido CA Un Sch Dist Ser A(9) 5.25% 8/1/2022 AAA 1,000 1,058,900
Franklin-McKinley CA Sch Dist
Ser B(9) 5.00% 8/1/2027 AAA 675 688,601
Fremont CA Unified High Sch
Dist Santa Clara Cnty Ser B(6) 5.25% 9/1/2025 AAA 1,000 1,042,300
Los Angeles CA Cmnty College
Ser A(12) 5.00% 6/1/2026 AAA 2,375 2,425,112
Los Angeles CA Uni Sch Dist
Ser A(9) 5.00% 7/1/2024 AAA 1,000 1,028,200
Mojave CA Unified Sch Dist
Sch Fac Impt Dist No 001(6) 5.00% 8/1/2024 AAA 1,060 1,087,751
Mojave CA Unified Sch Dist
Sch Facs Impt Dist No 001(6) 5.25% 8/1/2022 AAA 1,230 1,302,447
Monrovia CA Unified Sch Dist
Cap Apprec Ser B(6) Zero Coupon 8/1/2032 AAA 5,250 1,097,093
Montebello CA Unified Sch Dist(9) 5.00% 8/1/2020 AAA 350 368,091
Mount Pleasant CA Elem Sch
Dist 1998 Election Ser C(9) 5.50% 3/1/2026 AAA 465 499,159
Newark CA Unified Sch Dist
Cap Apprec Elec of 1997 Ser D(9) Zero Coupon 8/1/2026 AAA 5,000 1,436,050
Oxnard CA Unified High Sch
Dist Ref Ser A(12) 6.00% 2/1/2020 AAA 650 763,445
Oxnard CA Unified High Sch
Dist Ref Ser A(12) 6.20% 8/1/2030 AAA 3,000 3,526,470
Pittsburg CA Unified Sch Dist
Ser E(9) 6.00% 8/1/2024 AAA 1,380 1,543,475
Pittsburg CA Redev Agy Los
Medanos Cmnty Dev Pj(2) Zero Coupon 8/1/2026 AAA 3,500 1,005,235
Placer CA Union High Sch Dist
Cap Apprec Ser A(6) Zero Coupon 8/1/2020 AAA 2,000 847,080
Pomona CA Unified Sch Dist(12) 6.15% 8/1/2030 AAA 1,000 1,186,800
Pomona CA Unified Sch Dist
Ser A(12) 6.55% 8/1/2029 AAA 1,000 1,283,080
Rancho Santiago CA Cmnty
College Dist Election of 2002(12) 5.00% 9/1/2027 AAA 2,000 2,040,600
San Gabriel CA Unified Sch
Dist Ser A(9) 5.00% 8/1/2024 AAA 2,725 2,796,340
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Santa Cruz CA City Elem Sch
Dist Ser B(6) 6.00% 8/1/2029 AAA $ 2,500 $ 2,841,475
Southwestern Cmnty College(2) 5.375% 8/1/2025 AAA 1,500 1,602,525
Wiseburn CA Sch Dist Cap Ser A(6) 5.25% 8/1/2022 AAA 3,125 3,285,656
--------------
TOTAL 57,584,604
--------------
HEALTHCARE 2.82%
Abag Fin Auth for Nonprofit
Corp CA Ctfs Partn Woods Oblig(1) 6.20% 11/1/2029 A 975 1,068,707
CA Infrastructure & Econ Dev
Bk Rev Kaiser Hosp Ser A 5.50% 8/1/2031 A 1,300 1,326,598
CA Infrastructure & Econ Dev
Bk Rev Kaiser Hosp Ser B 5.55% 8/1/2031 A 650 664,820
CA Infrastructure & Econ
Scripps Research Inst Ser A 5.75% 7/1/2030 Aa3 1,500 1,611,570
Torrance CA Hosp Rev Torrance
Memorial Med Ctr SerA 5.50% 6/1/2031 A+ 500 506,060
Torrance CA Hosp Rev Torrance
Memorial Med Ctr SerA 6.00% 6/1/2022 A+ 500 535,970
--------------
TOTAL 5,713,725
--------------
HOUSING 3.08%
California Hsg Fin Agy Rev
Home Mtg Ser K AMT(12)(7) Zero Coupon 2/1/2022 AAA 5,000 1,742,450
California Hsg Fin Agy Rev
Home Mtg Ser K AMT **(12)(7) 0.00%/5.7% 2/1/2012 & 2015 AAA 5,295 3,471,508
Cathedral City CA Pub Fing
Tax Alloc Hsg(12) 5.00% 8/1/2026 AAA 1,000 1,026,940
--------------
TOTAL 6,240,898
--------------
INDUSTRIAL 5.29%
California Poll Ctrl Fin Auth
Rev Southern CA Ser B AMT(2)(14) 6.40% 12/1/2024 AAA 10,435 10,727,493
--------------
LEASE 10.01%
California St Pub Wk Brd
Lease Rev Dept Gen Svcs Teale Data(2) 5.25% 3/1/2020 AAA 1,000 1,060,550
Chula Vista CA Ctfs Partn(12) 5.00% 8/1/2023 AAA 1,205 1,242,813
Inglewood CA Pub Fin Auth Rev
Ser A(2) 5.25% 8/1/2021 AAA 600 637,350
Orange Cnty CA Recovery Ctfs
Partn Residual Ser 128 RIBs(12) 10.325% 7/1/2019 AAA(b) 2,500 3,118,150
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Orange Cnty CA Recovery Ctfs
Partn Ser A(12) 6.00% 7/1/2026 AAA $ 750 $ 847,388
Plumas Cnty CA Ctfs Partn Cap
Impt Prog-Ser A(2) 5.25% 6/1/2023 AAA 1,365 1,442,914
Sacramento CA City Fin Auth
Rev Cap Impt Ser A(2) 5.00% 12/1/2020 AAA 2,000 2,092,580
Sacramento CA City Fin Auth
Rev Cap Impt Ser A(2) 5.00% 12/1/2026 AAA 900 918,684
San Buenaventura CA Ctfs
Partn Ser C(2) 5.25% 2/1/2031 AAA 2,575 2,696,669
San Francisco CA City & Cnty
San Bruno Jail No 3(2) 5.25% 10/1/2033 AAA 5,000 5,178,400
Santa Ana CA Unified Sch Dist
Ctfs Partn Fin Pj(9) Zero Coupon 4/1/2019 AAA 2,295 1,053,130
--------------
TOTAL 20,288,628
--------------
MISCELLANEOUS 1.82%
CA Infrastructure & Econ Bk
Rev Asian Museum Fdtn(12) 5.25% 6/1/2030 AAA 115 118,587
CA Infrastructure & Econ Bk
Rev YMCA Metropolitan LA Pj(2) 5.25% 2/1/2026 AAA 2,000 2,095,280
Oakland CA JT Pwrs Fin Auth
Reassmt Rev 5.50% 9/2/2024 A- 410 432,976
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.50% 8/1/2029 BBB+ 1,000 1,041,050
--------------
TOTAL 3,687,893
--------------
POWER 7.61%
CA St Dept Wtr Res Pwr Supply
Rev Insured Series(13) 5.375% 5/1/2017 AAA 1,000 1,102,720
Los Angeles CA Wtr & Pwr Rev
Pwr Sys-A-A-1(12)(18) 5.00% 7/1/2024 AAA 850 868,216
M-S-R Pub Pwr Agy CA San Juan
Pj Rev Ser D ETM(12) 6.75% 7/1/2020 AAA 990 1,246,964
Northern CA Transmission Rev
RIBs(12) 9.012% 4/29/2024 AAA 8,500 8,906,470
Puerto Rico Elec Pwr Auth Rev
Ser II(9) 5.125% 7/1/2026 AAA 500 522,465
Sacramento CA Muni Util Dist
Ref Ser M(12)(18) 5.25% 7/1/2028 AAA 975 1,004,162
Sacramento CA Muni Util Dist
Ref-Ser Q(9) 5.25% 8/15/2022 AAA 1,000 1,059,110
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Shasta CA Jt Pwrs Fing Auth
Cnty Admin Bldg PJ-A(12) 5.25% 4/1/2023 AAA $ 675 $ 710,390
--------------
TOTAL 15,420,497
--------------
PRE-REFUNDED 4.45%
CA Ed Fac Auth Rev Pooled
College/Univ Ser C ETM 6.50% 6/1/2020 Baa3 3,000 3,553,320
East Bay CA Muni Util Dist
Wst Wtr Treatment Sys Rev RIBs(2) 9.37% 6/1/2020 AAA 2,050 2,161,397
San Francisco CA City & Cnty
Arpt Commn Rev Ser Issue 2(12) 6.75% 5/1/2020 AAA 3,230 3,308,780
--------------
TOTAL 9,023,497
--------------
RESOURCE RECOVERY 1.07%
California Poll Ctrl Fin Auth
Rev Pacific Gas/Elec Ser A AMT(12) 5.35% 12/1/2016 AAA 2,000 2,176,380
--------------
SPECIAL TAX 7.92%
Concord CA Redev Agy Tax
Alloc Ser 3(4) 8.00% 7/1/2018 AAA 35 35,557
Csuci Fin Auth Rev CA East
Campus Cmnty Ser A(12) 5.25% 9/1/2026 AAA 5,500 5,692,500
Los Angeles Cnty CA Met Trans
Auth Sales Prop A-1St Sr-Ser A(9) 5.00% 7/1/2027 AAA 400 408,884
Riverside Cnty CA Redev Agy
Tax Alloc Jupura Valley Proj(2) 5.25% 10/1/2035 AAA 2,000 2,102,140
Rnr Sch Fin Auth CA Spl Tax
Cmnty Fac Dist #92-1 Ser A(2) 5.625% 9/1/2030 AAA 3,985 4,329,902
Salida CA Area Pub Fac Fin
Agy Cmnty Fac Dist Spl Tax #1998-1(9) 5.25% 9/1/2028 AAA 900 934,146
San Francisco CA Bay Area
Rapid Tran Dist Sales Tax Rev(2) 5.00% 7/1/2026 AAA 2,500 2,552,300
--------------
TOTAL 16,055,429
--------------
TRANSPORTATION 9.43%
Bay Area Govt Assn CA Rev
Bart SFO Extn-Arpt Premium-A(2) 5.00% 8/1/2026 AAA 2,000 2,046,280
Fresno CA Arpt Rev Ser A(9) 5.50% 7/1/2030 AAA 1,500 1,594,815
Port Oakland CA Port Rev Ser J(12) 5.50% 11/1/2026 AAA 5,000 5,374,500
San Francisco CA City & Cnty
Aprt Commn Ser 2 Issue 15A AMT(9) 5.00% 5/1/2017 AAA 2,000 2,093,000
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
San Francisco CA City & Cnty
Arpt Commn Rev Ser Issue 6 AMT(2) 6.50% 5/1/2018 AAA $ 4,500 $ 4,793,805
San Francisco CA City & Cnty
Arpt Lease SFO Fuel Ser A AMT(9) 6.125% 1/1/2027 AAA 500 553,295
San Francisco CA City & Cnty
Commn Intl Arpt Rev AMT(9) 5.75% 1/1/2014 AAA 500 556,075
San Francisco CA City & Cnty
Ref Second Ser 28B(12) 5.25% 5/1/2023 AAA 2,000 2,104,600
--------------
TOTAL 19,116,370
--------------
WATER/SEWER 4.54%
El Monte CA Wtr Auth Rev(2) 5.60% 9/1/2029 AAA 2,000 2,163,380
Imperial CA Ctfs Partn Ref
Wtr Fac(6) 5.00% 10/15/2020 AAA 3,250 3,421,308
Palo Alto CA Util Rev Ser A 6.25% 6/1/2020 AA+ 1,610 1,723,441
San Luis Obispo Cnty CA Ser A(12) 5.375% 8/1/2030 AAA 1,800 1,894,967
--------------
TOTAL 9,203,096
--------------
TOTAL MUNICIPAL BONDS (Cost $185,130,273) 195,804,802
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 3.90%
FINANCIAL SERVICES 3.90%
Dreyfus General CA Fund Class A (Cost $7,906,779) 7,907 7,906,779
==============
TOTAL INVESTMENTS 100.51% (Cost $193,037,052) $ 203,711,581
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
---------
MUNICIPAL BONDS 96.92%
EDUCATION 23.16%
CT St Hlth & Ed Fac Auth Rev
CT College Ser E(12) 5.00% 7/1/2032 AAA $ 1,550 1,579,775
CT St Hlth & Ed Fac Auth Rev
CT College Ser E(12) 5.25% 7/1/2022 AAA 400 431,880
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
CT St Hlth & Ed Fac Auth Rev
Fairfield Univ Ser I(12) 5.50% 7/1/2029 AAA $ 1,235 $ 1,318,486
CT St Hlth & Ed Fac Auth Rev
Fairfield Univ Ser I(12) 5.25% 7/1/2019 AAA 600 644,352
CT St Hlth & Ed Fac Auth Rev
Gunnery Sch(3) 5.35% 7/1/2031 AA 695 715,475
CT St Hlth & Ed Fac Auth Rev
Loomis Chaffee Sch Ser D 5.25% 7/1/2031 A2 2,750 2,841,300
CT St Hlth & Ed Fac Auth Rev
Miss Porters Sch Ser A 5.75% 7/1/2029 A+ 3,200 3,436,640
CT St Hlth & Ed Fac Auth Rev
Quinnipiac College Ser E(1)(9) 4.75% 7/1/2028 AAA 500 500,575
CT St Hlth & Ed Fac Auth Rev
Suffield Academy Ser A(12) 5.40% 7/1/2027 AAA 1,350 1,408,685
CT St Hlth & Ed Fac Auth Rev
Trinity College Ser E(12) 5.875% 7/1/2026 AAA 1,000 1,103,070
CT St Hlth & Ed Fac Auth Rev
Trinity College Ser G(2) 5.00% 7/1/2021 AAA 1,000 1,048,740
CT St Hlth & Ed Fac Auth Rev
Univ CT Fndtn Ser A 5.375% 7/1/2029 A+ 210 216,774
CT St Hlth & Ed Fac Auth Rev
Univ Hartford Ser E(3) 5.25% 7/1/2032 AA 2,900 3,004,487
CT St Hlth & Ed Fac Auth Rev
Univ New Haven Issue D(1)(15) 6.70% 7/1/2026 A 1,000 1,065,410
CT St Hlth & Ed Fac Auth Rev
Unrefunded Bal Sacrd Hrt Ser C 6.50% 7/1/2016 BBB- 275 292,212
CT St Hlth & Ed Fac Auth Rev
Yale Univ Ser X-1 5.00% 7/1/2042 AAA 2,410 2,438,727
University CT Ser A(6) 5.625% 3/1/2020 AAA 1,000 1,103,570
--------------
TOTAL 23,150,158
--------------
GENERAL OBLIGATION 27.90%
Bridgeport CT Ser C(6) 4.75% 8/15/2021 AAA 1,000 1,013,040
Bridgeport CT Ser C(6) 5.00% 8/15/2020 AAA 500 522,565
CT St Ser A 5.625% 4/15/2020 AA 1,000 1,105,030
CT St Ser B 5.60% 6/15/2020 AA 250 274,465
CT St Ser D 5.125% 11/15/2018 AA 1,500 1,611,720
Hartford CT 6.50% 12/15/2005 A1 730 826,827
Monroe CT 6.60% 4/15/2005 Aa2 100 110,452
Montville CT 6.70% 6/15/2010 Aa3 575 705,128
Montville CT 6.70% 6/15/2009 Aa3 550 669,185
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
New Haven CT(6) 5.00% 11/1/2019 AAA $ 1,085 $ 1,159,442
New Haven CT Ser A(2) 5.00% 11/1/2021 AAA 1,000 1,045,650
New London CT(2) 4.50% 2/1/2023 AAA 725 716,525
Puerto Rico Comwlth Pub Impt Zero Coupon 7/1/2018 A- 2,035 1,018,863
Puerto Rico Comwlth Pub Impt Ref(9) 5.125% 7/1/2030 AAA 2,450 2,540,650
Puerto Rico Comwlth Pub Impt
Ser A(6) 5.00% 7/1/2032 AAA 4,310 4,435,076
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- 1,170 1,173,346
Redding CT 6.60% 4/15/2010 Aa1 100 122,035
Regional Sch Dist #16 CT(6) 5.00% 2/1/2020 Aaa 115 120,855
Waterbury CT(9) 5.125% 4/1/2022 AAA 2,250 2,358,157
Waterbury CT Ser A(9) 5.00% 4/1/2019 AAA 1,250 1,321,387
Watertown CT 6.50% 6/15/2003 Aa3 100 101,090
West Haven CT(12) 6.50% 6/15/2006 AAA 100 114,750
Westport CT Lot A 4.50% 2/1/2021 Aaa 1,605 1,617,712
Westport CT Lot A 4.50% 2/1/2022 Aaa 1,605 1,607,231
Westport CT Lot A 4.625% 2/1/2023 Aaa 1,585 1,591,182
--------------
TOTAL 27,882,363
--------------
HEALTHCARE 5.81%
CT St Dev Auth Rev Duncaster
Inc Pj(3) 5.125% 8/1/2022 AA 235 243,472
CT St Hlth & Ed Fac Auth Rev
Bridgeport Hosp Ser A(12) 6.625% 7/1/2018 AAA 1,250 1,290,750
CT St Hlth & Ed Fac Auth Rev
Bristol Hosp Ser B(3) 5.50% 7/1/2021 AA 1,000 1,081,500
CT St Hlth & Ed Fac Auth Rev
Catholic Hlth East Ser F(12) 5.625% 11/15/2020 AAA 325 356,730
CT St Hlth & Ed Fac Auth Rev
Child Care Fac Prog Ser C(2) 5.625% 7/1/2029 AAA 1,000 1,084,280
CT St Hlth & Ed Fac Auth Rev
St. Francis Hosp & Med(3) 5.00% 7/1/2022 AA 1,000 1,042,280
CT St Hlth & Ed Fac Auth Rev
Waterbury Hosp Issue Ser C(3) 5.75% 7/1/2029 AA 650 709,052
--------------
TOTAL 5,808,064
--------------
HOUSING 6.98%
CT St Hsg Fin Auth Fin Prog
Subser A-2 AMT 5.50% 11/15/2022 AAA 1,000 1,036,010
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
CT St Hsg Fin Auth Hsg Mtg
Fin Prog Ser D 2 AMT 5.15% 11/15/2022 AAA $ 555 $ 565,467
CT St Hsg Fin Auth Hsg Mtg
Fin Prog Subser A-2 5.35% 11/15/2022 AAA 500 518,480
CT St Hsg Fin Auth Hsg Mtg
Fin Ser C - 2 AMT 6.00% 11/15/2020 AAA 1,000 1,062,200
CT St Hsg Fin Auth Spl
Oblig-Grp Home Mtg-GH-5(2) 5.85% 6/15/2030 AAA 500 530,140
CT St Hsg Fin Auth Spl
Oblig-Spl Needs Hsg-SNH-1(2) 5.00% 6/15/2032 AAA 750 760,118
CT St Hsg Fin Auth Subser B - 2 AMT 5.75% 11/15/2021 AAA 2,405 2,505,409
--------------
TOTAL 6,977,824
--------------
INDUSTRIAL 6.95%
Connecticut St Dev Auth Govt
Lease Rev(12) 6.60% 6/15/2014 AAA 500 539,265
Connecticut St Dev Auth Poll
Ctrl Rev Pfizer Inc Pj 6.55% 2/15/2013 AAA 3,570 3,674,066
Connecticut St Dev Auth Solid
Wst Dsp Fac Rev Pfizer Inc AMT 7.00% 7/1/2025 AAA 2,500 2,733,950
--------------
TOTAL 6,947,281
--------------
MISCELLANEOUS 3.47%
CT St Dev Auth Aquar Rev
Mystic Marinelife Aquar Ser A 7.00% 12/1/2027 BBB(a) 1,500 1,536,105
CT St Hlth & Ed Fac Auth Rev
Village Families(2) 5.00% 7/1/2032 AAA 880 893,332
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.50% 8/1/2029 BBB+ 1,000 1,041,050
--------------
TOTAL 3,470,487
--------------
POWER 5.14%
Puerto Rico Elec Pwr Auth Pwr Rev
Ser II(9) 5.125% 7/1/2026 AAA 2,925 3,056,420
Puerto Rico Elec Pwr Auth Pwr Rev
Ser II 5.25% 7/1/2031 A- 1,000 1,025,420
Puerto Rico Elec Pwr Auth Pwr Ser HH(9) 5.25% 7/1/2029 AAA 1,000 1,049,710
--------------
TOTAL 5,131,550
--------------
PRE-REFUNDED 9.36%
CT St Hlth & Ed Fac Auth Rev
Sacred Heart Ser C 6.50% 7/1/2016 BBB- 725 845,328
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
CT St Ser A 6.00% 4/15/2015 AA $ 1,000 $ 1,190,040
CT St Spl Tax Oblig Rev(6) 6.10% 10/1/2011 AAA 1,000 1,084,220
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM 9.527% 10/1/2040 Aaa 1,000 1,154,920
Puerto Rico Comwlth 6.00% 7/1/2026 AAA 1,000 1,173,060
Puerto Rico Elec Pwr Auth Pwr
Rev Ser X 6.125% 7/1/2021 Aaa 750 844,523
Puerto Rico Elec Pwr Auth Pwr
Ser T RIBs(9) 11.29% 7/1/2018 AAA 1,500 1,752,585
University CT Rev Student Fee Ser A 6.00% 11/15/2021 AA- 390 469,275
University CT Rev Student Fee
Ser A(6) 6.00% 11/15/2025 AAA 500 601,635
University CT Rev Student Fee
Ser A(6) 5.75% 11/15/2020 AAA 205 243,218
--------------
TOTAL 9,358,804
--------------
TRANSPORTATION 5.25%
CT St Spl Tax Oblig Rev Rite
PA 1039 R-A RIBs(9) 9.174% 1/1/2010 AAA 500 597,220
CT St Spl Tax Oblig Rev Rite
PA 1039 R-B RIBs(9) 9.174% 1/1/2010 AAA 785 923,757
CT St Spl Tax Oblig Rev Rite
PA 1039 R-C RIBs(9) 8.424% 7/1/2017 AAA 2,250 2,439,090
Puerto Rico Comwlth Hwy & Trans
Auth Trans Rev Ser D(9) 5.00% 7/1/2032 AAA 1,250 1,286,275
--------------
TOTAL 5,246,342
--------------
WATER/SEWER 2.90%
Connecticut St Dev Auth Wtr
Bridgeport AMT(2) (14) 6.15% 4/1/2035 AAA 500 558,295
Connecticut St Dev Auth Wtr
Fac Rev CT Wtr Co Ser A AMT(2) 5.75% 7/1/2028 AAA 250 252,113
South Cent CT Regl Wtr Auth
16th Ser(2) 5.375% 8/1/2030 AAA 1,000 1,043,200
South Cent CT Regl Wtr Auth
Sys Rev 16th Ser(2) 5.375% 8/1/2025 AAA 1,000 1,048,480
--------------
TOTAL 2,902,088
--------------
TOTAL MUNICIPAL BONDS (Cost $91,487,666) 96,874,961
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
INTEREST MATURITY SHARES
INVESTMENTS RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT 1.77%
FINANCIAL SERVICES 1.77%
Dreyfus CT Muni Cash Management (Cost $1,774,539) 1,775 $ 1,774,539
==============
TOTAL INVESTMENTS 98.69% (Cost $93,262,205) $ 98,649,500
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
HAWAII TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
S&P OR AMOUNT
MOODY'S (000)
------- ------------
MUNICIPAL BONDS 93.99%
EDUCATION 6.80%
HI St Hsg Fin & Dev Corp Rev
Univ of HI Faculty Hsg Pj(2) 5.65% 10/1/2016 AAA $ 1,000 1,085,370
HI St Hsg Fin & Dev Corp Rev
Univ of HI Faculty Hsg Pj(2) 5.70% 10/1/2025 AAA 380 407,060
University HI Univ Sys Rev(6) 5.125% 7/15/2032 AAA 1,000 1,023,290
University HI Univ Sys Rev Ser A(6) 5.50% 7/15/2029 AAA 2,500 2,664,375
--------------
TOTAL 5,180,095
--------------
GENERAL OBLIGATION 25.49%
Hawaii Cnty HI Ref Impt Ser A(6) 5.60% 5/1/2013 AAA 1,780 2,060,671
Hawaii Cnty HI Ref Impt Ser A(6) 5.50% 7/15/2017 AAA 1,045 1,159,198
Hawaii Cnty HI Ref Impt Ser A(9) 5.625% 5/15/2019 AAA 545 603,767
Hawaii St Ser BZ 6.00% 10/1/2012 AA- 500 595,335
Hawaii St Ser BZ 6.00% 10/1/2010 AA- 500 590,805
Hawaii St Ser CA(6) 8.00% 1/1/2013 AAA 2,000 2,682,460
Hawaii St Ser CP(6) 5.00% 10/1/2016 AAA 900 957,591
Neal, Hawaii St Ser CZ(9) 5.25% 7/1/2018 AAA 3,000 3,265,440
Honolulu HI City & Cnty Ser A(6) 5.50% 9/1/2016 AAA 5 5,578
Honolulu HI City & Cnty Ser A(9) 5.125% 9/1/2021 AAA 600 626,850
Honolulu HI City & Cnty Ser B(6) 5.00% 11/1/2016 AAA 265 281,043
Honolulu HI City & Cnty Wtr
ETM(6)(14) 6.00% 12/1/2015 AAA 1,000 1,217,170
Kauai Cnty HI Pub Impt Ser B(12) 5.25% 8/1/2017 AAA 95 101,644
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
HAWAII TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Kauai Cnty HI Ser A(12) 5.50% 8/1/2021 AAA $ 2,495 $ 2,698,941
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- 500 501,430
Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 2,000 2,067,760
--------------
TOTAL 19,415,683
--------------
HEALTHCARE 9.66%
HI St Dept Bdg & Fin Spl Purp
Mtg Rev St Francis Med Ctrs(9) 6.50% 7/1/2022 AAA 1,200 1,226,952
HI St Dept Bdg & Fin Spl Purp
Rev Kaiser Permanente Ser A 5.15% 3/1/2015 A 1,250 1,272,700
HI St Dept Bdg & Fin Spl Purp
Rev Kapiolani Hlth 6.20% 7/1/2016 BBB+ 1,000 1,042,960
HI St Dept Bdg & Fin Spl Purp
Rev Kapiolani Hlth 6.25% 7/1/2021 BBB+ 2,000 2,055,420
HI St Dept Bdg & Fin Spl Purp
Rev The Queens Hlth Sys Ser B(12) 5.25% 7/1/2023 AAA 1,000 1,030,270
HI St Dept Bdg & Fin Spl Purp
Rev Wilcox Mem Hosp Pj 5.50% 7/1/2028 BBB+ 600 567,882
Puerto Rico Ind Tourist Ed
Med Mutuo Oblig Grp Ser A(12) 6.25% 7/1/2024 AAA 150 163,032
--------------
TOTAL 7,359,216
--------------
HOUSING 4.43%
HI St Hsg Fin & Dev Corp Sing
Fam Mtg Purp Rev Ser A AMT(8) 7.10% 7/1/2024 AAA 960 960,182
HI St Hsg Fin & Dev Corp Sing
Fam Mtg Purp Rev Ser B(8) 5.30% 7/1/2028 AAA 850 866,822
HI St Hsg Fin & Dev Corp Sing
Fam Mtg Purp Rev Ser B(8) 5.45% 7/1/2017 AAA 1,000 1,036,270
Honolulu HI City & Cnty Mtg
Rev FHA Smith Beretania 8A(12)(7) 5.45% 1/1/2025 Aaa 500 511,775
--------------
TOTAL 3,375,049
--------------
LEASE 1.42%
Puerto Rico Comwlth Infra Fin
Auth Spl Ser A ETM 5.50% 10/1/2032 AAA 200 216,238
Puerto Rico Comwlth Infra Fin
Auth Spl Ser A ETM 5.375% 10/1/2024 AAA 300 323,055
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.75% 8/1/2030 BBB+ 500 539,575
--------------
TOTAL 1,078,868
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
HAWAII TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS 5.39%
HI St Ctfs Partn Cap Dist
Kapolei St Office Ser A(2) 5.00% 5/1/2018 AAA $ 475 $ 497,230
HI St Ctfs Partn Cap Dist St
Office(12) 5.50% 5/1/2020 AAA 500 538,155
Puerto Rico Pub Bldg Auth Rev
Govt Fac Ser B(2) 5.00% 7/1/2027 AAA 1,000 1,021,970
Puerto Rico Pub Bldg Auth Rev
Gtd Govt Fac Ser D 5.25% 7/1/2036 A- 2,000 2,046,900
--------------
TOTAL 4,104,255
--------------
POWER 5.94%
HI St Dept Bdg & Fin Spl Purp
HI Elec Co Inc P.L.C.-Ser A AMT(2) 5.10% 9/1/2032 AAA 1,500 1,509,960
HI St Dept Bdg & Fin Spl Purp
Mtg Rev HI Elec Co Ser A AMT(12) 6.60% 1/1/2025 AAA 2,500 2,701,750
HI St Dept Bdg & Fin Spl Purp
Mtg Rev HI Elec Co Ser C AMT(12) 7.375% 12/1/2020 AAA 310 312,985
--------------
TOTAL 4,524,695
--------------
PRE-REFUNDED 22.84%
Childrens TR FD PR TOB 6.00% 7/1/2026 AAA 1,000 1,183,260
Hawaii St Ser CT(9) 5.875% 9/1/2019 AAA 1,175 1,391,693
Hawaii St Ser CU(12) 5.25% 10/1/2020 AAA 1,700 1,936,657
Honolulu HI City & Cnty Brd
Wtr Supply Wtr Sys Rev 5.80% 7/1/2021 AA 1,000 1,137,980
Honolulu HI City & Cnty Ser A(12) 5.00% 11/1/2015 AAA 1,095 1,151,787
Honolulu HI City & Cnty Ser A(12) 5.00% 11/1/2015 AAA 405 454,872
Honolulu HI City & Cnty Ser A(6) 5.50% 9/1/2016 AAA 440 503,325
Honolulu HI City & Cnty Ser A(6) 5.50% 9/1/2016 AAA 555 638,461
Honolulu HI City & Cnty Ser B(6) 5.00% 11/1/2016 AAA 235 266,067
Kauai Cnty HI(6) 6.125% 8/1/2024 AAA 580 692,097
Maui Cnty HI Ser A(12) 5.00% 3/1/2022 AAA 750 772,807
Maui Cnty HI Ser A(6) 6.10% 3/1/2020 AAA 500 594,980
Maui Cnty HI Ser A(12) 5.75% 6/1/2016 AAA 1,035 1,172,914
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM 9.527% 10/1/2040 Aaa 1,250 1,443,650
Puerto Rico Comwlth 6.00% 7/1/2026 AAA 1,000 1,173,060
Puerto Rico Comwlth 6.50% 7/1/2023 AAA 1,250 1,352,162
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
HAWAII TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Puerto Rico Ind Med & Envr
Poll Ctrl St. Luke Hosp Ser A 6.25% 6/1/2010 AAA $ 1,390 $ 1,533,267
--------------
TOTAL 17,399,039
--------------
TRANSPORTATION 11.88%
HI St Hwy Rev(9) 5.50% 7/1/2020 AAA 1,100 1,185,602
HI St Hbr Cap Impt Rev AMT(6) 6.25% 7/1/2015 AAA 500 536,180
HI St Hbr Cap Impt Rev AMT(6) 6.375% 7/1/2024 AAA 500 536,360
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A 3,000 3,164,640
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y(12)(18) 5.50% 7/1/2036 AAA 250 272,892
Puerto Rico Comwlth Hwy &
Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 1,000 1,079,400
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.521% 1/1/2010 A 1,000 1,169,880
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser D 5.75% 7/1/2041 A 1,000 1,084,940
Puerto Rico Comwlth Hwy &
Transn Auth Transn Sub PR Rev 5.00% 7/1/2022 A- 20 20,241
--------------
TOTAL 9,050,135
--------------
WATER/SEWER 0.14%
Honolulu HI City & Cnty Brd
Wtr Supply Wtr Sys Rev(9) 5.25% 7/1/2031 AAA 100 103,716
--------------
TOTAL MUNICIPAL BONDS (Cost $66,583,746) $ 71,590,751
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
MINNESOTA TAX-FREE FUND MARCH 31, 2003
<Table>
MUNICIPAL BONDS 87.54%
EDUCATION 5.24%
MN St Higher Ed Fac Auth Rev
Hamline Univ Ser 5-B 6.00% 10/1/2029 Baa1 500 521,525
MN St Higher Ed Fac Auth Rev
Macalester College Ser 4-J 5.55% 3/1/2017 Aa3 260 281,788
MN St Higher Ed Fac Auth Rev
Univ of St. Thomas Ser 4-A1 5.625% 10/1/2016 A2 250 265,218
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
MINNESOTA TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
MN St Higher Ed Fac Auth Rev
Univ of St. Thomas Ser 4-M 5.35% 4/1/2017 A2 $ 250 $ 262,815
University MN Ser A 5.75% 7/1/2018 AA 250 295,772
--------------
TOTAL 1,627,118
--------------
GENERAL OBLIGATION 17.57%
Elk River MN Sch Dist(12) 5.50% 2/1/2021 Aaa 500 541,565
Hennepin Cnty MN Regl RR Auth 5.00% 12/1/2031 AAA 500 509,525
Lake Superior MN Indpt Sch
Dist #381 Ser A(9) 5.00% 4/1/2023 Aaa 500 513,860
Medford MN Indpt Sch
Dist #763 Ser A(9) 5.50% 2/1/2031 Aaa 500 529,265
Minneapolis MN Ser E 5.00% 3/1/2026 AAA 500 509,970
Minnesota St 5.25% 8/1/2014 AAA 265 281,372
North St. Paul Maplewood MN
Indpt Sch Dist #622 5.125% 2/1/2025 AA+ 400 409,804
North St. Paul Maplewood MN
Indpt Sch Dist #622 Ser A 5.125% 2/1/2020 AA+ 100 103,879
Princeton MN Indpt Sch Dist #477(9) 5.125% 2/1/2024 Aaa 1,000 1,022,750
Puerto Rico Comwlth Pub Impt(12)(18) 5.00% 7/1/2028 AAA 500 516,910
Ramsey Cnty MN St Aid Str-Ser C 5.00% 2/1/2024 AAA 500 510,875
--------------
TOTAL 5,449,775
--------------
HEALTHCARE 11.10%
Bemidji MN Hlthcare Fac
North Country Health Svcs(3) 5.00% 9/1/2024 AA 1,000 1,008,170
Hastings MN Hlthcare Fac Rev
Regina Med Ctr(1) 5.30% 9/15/2028 A 400 402,808
Minneapolis & St. Paul MN Hsg
Redev Auth Hlthcare Sys Pj 6.90% 10/15/2022 BBB+ 275 282,032
Minneapolis & St. Paul MN Hsg
Redev Auth Hlthcare Sys Ser A(9) 5.70% 8/15/2016 AAA 150 160,473
Minneapolis MN Healthcare Sys Rev(12) 5.00% 5/15/2021 AAA 250 259,497
MN Agric & Econ Dev Bd Rev
Hlthcare Fairview Hosp Ser A(12) 5.50% 11/15/2017 AAA 220 240,370
Rochester MN Hlthcare Fac Rev(12)(18) 5.50% 11/15/2027 AAA 500 525,645
St. Paul MN Hsg & Redev Auth
Franciscan Hlth Pj(10)(7) 5.30% 11/20/2022 AAA 50 51,704
Willmaer MN Rice Mem Hosp(9) 5.00% 2/1/2032 Aaa 500 511,665
--------------
TOTAL 3,442,364
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
MINNESOTA TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
HOUSING 17.34%
Dakota Cnty MN Hsg & Redev
Auth Sing Fam Mtg Rev AMT(11) 5.85% 10/1/2030 AAA $ 484 $ 501,419
Eden Prairie MN Multi Fam Hsg
Rev Lincoln Parc Pj Ser A-1(10)(7) 6.40% 12/20/2020 Aaa 305 332,914
Fairbault MN Hsg & Redev Auth
Govt Trails Edge Apts Ser A 5.25% 2/1/2028 A3 400 399,968
Minneapolis MN Multi Fam Hsg
Rev Mtg East Village South(10)(7) 6.10% 7/20/2020 Aaa 1,000 1,077,780
Minnesota St Hsg Fin Agy
Residential Hsg Fin Ser F AMT 5.40% 7/1/2030 AA+ 1,500 1,528,845
Minnesota St Hsg Fin Agy Sing
Fam Mtg Ser D AMT 5.85% 7/1/2019 AA+ 190 197,606
Minnesota St Hsg Fin Agy Sing
Fam Mtg Ser D AMT 6.40% 7/1/2015 AA+ 135 140,538
Minnesota St Hsg Fin Agy Sing
Fam Mtg Ser E 5.90% 7/1/2025 AA+ 130 133,893
Minnesota St Hsg Fin Agy Sing
Fam Mtg Ser G AMT 6.25% 7/1/2026 AA+ 110 114,043
Robbinsdale MN Hsg Dev Sr Hsg
Pj Ser B(6) 5.75% 1/1/2023 Aaa 250 261,475
Scott Cnty MN Hsg & Redev
Savage City Hamilton Apts Pj(2) 5.60% 2/1/2019 Aaa 80 83,318
St. Louis Park MN Multi Fam
Hsg Mtg Cmnty Hsg(7) 6.15% 12/1/2016 Aa2 100 105,502
St. Paul MN Port Auth Hsg
Burlington Apt(10) 5.35% 5/1/2031 AAA 500 504,065
--------------
TOTAL 5,381,366
--------------
LEASE 6.27%
Olmsted Cnty MN Hsg & Redev 5.00% 2/1/2023 AAA 275 278,176
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.75% 8/1/2030 BBB+ 500 539,575
Rochester MN Indpt Sch Dist
#535 Ctfs Partn(9) 5.125% 2/1/2020 AAA 85 89,614
St. Paul MN Port Auth Lease
Rev Office Bldg 5.25% 12/1/2027 AA+ 1,000 1,039,100
--------------
TOTAL 1,946,465
--------------
MISCELLANEOUS 6.07%
Bemidji MN Lease Rev MN St
Bureau Crim Appreh(12) 5.80% 12/1/2021 Aaa 460 507,918
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
MINNESOTA TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Douglas Cnty MN Hsg & Redev
Governmental Hsg Ser A(12) 5.50% 1/1/2032 Aaa $ 560 $ 584,427
Minneapolis MN Tax Increment Ser C 5.00% 2/1/2028 AAA 300 304,248
Minnesota St Retirement Sys Bldg Rev 6.00% 6/1/2030 AAA 250 280,190
St. Cloud MN Ctfs Partn 5.90% 12/1/2017 A+ 200 207,698
--------------
TOTAL 1,884,481
--------------
POWER 11.08%
Chaska MN Elec Rev Ser A 6.00% 10/1/2025 A3 250 267,560
Hutchinson MN Pub Util Rev Ser B(12) 4.625% 12/1/2025 Aaa 1,000 986,810
Puerto Rico Elec Pwr Auth Rev
Ser DD(9) 4.50% 7/1/2019 AAA 95 96,403
Rochester MN Elec Util Rev(2)(14) 5.25% 12/1/2030 AAA 1,000 1,035,630
South MN Muni Agy Supply Sys
Rev Ser A(12) Zero Coupon 1/1/2021 AAA 1,000 427,270
Western MN Mun Pwr Agy Pj Ser A(2) 5.50% 1/1/2016 Aaa 565 624,890
--------------
TOTAL 3,438,563
--------------
PRE-REFUNDED 6.18%
Marshall MN Elec & Wtr Util Rev(9) 6.45% 7/1/2011 AAA 150 151,905
Minneapolis MN Sp Sch Dist #001(6) 5.375% 2/1/2014 AAA 250 258,273
Minneapolis MN Spl Sch
Dist #001 Ctfs Partn 5.75% 2/1/2017 AA+ 1,120 1,283,979
Minneapolis MN Spl Sch
Dist #001 Ctfs Partn 5.75% 2/1/2015 AA+ 100 114,641
Minnesota Pub Fac Auth Wtr
Poll Ctrl Rev Ser A 6.25% 3/1/2016 AAA 100 109,133
--------------
TOTAL 1,917,931
--------------
TRANSPORTATION 6.69%
Minneapolis & St. Paul MN Met
Comm Arpt Rev Sub Ser C(6) 5.25% 1/1/2026 AAA 2,000 2,074,520
--------------
TOTAL MUNICIPAL BONDS (Cost $25,712,223) $ 27,162,583
========================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
MISSOURI TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 97.73%
EDUCATION 9.95%
Bowling Green MO Sch Dist R-I
Bldg Corp Leasehold Rev(12) 5.85% 3/1/2020 Aaa $ 1,000 $ 1,114,540
Kansas Cnty MO Met Cmnty
Colleges Bldg Corp Rev Ref(6) 5.00% 7/1/2021 Aaa 1,000 1,037,540
Mehville MO Sch Dist #R9 Ctfs
Partn MO Cap Impt(9) 5.25% 9/1/2013 AAA 1,000 1,123,900
Missouri St Hlth & Ed Fac
Auth Ref Washington Univ Ser B 5.00% 3/1/2030 AA+ 1,800 1,821,024
Missouri St Hlth & Ed Fac
Auth Rev Washington Univ Ser A 5.125% 6/15/2041 AA+ 3,000 3,048,960
Missouri St Hlth & Ed Fac
Auth Washington Univ Ser A 4.75% 11/15/2037 AA+ 2,050 2,022,448
Missouri St Hlth & Ed Fac
Auth Webster Univ(12) 5.25% 4/1/2021 Aaa 2,000 2,113,540
University MO Univ Rev
Ref-Sys Facs-Ser(12)(18) 5.00% 11/1/2027 AAA 1,500 1,529,295
University MO Univ Rev Sys Fac 5.50% 11/1/2017 AA+ 950 977,882
--------------
TOTAL 14,789,129
--------------
GENERAL OBLIGATION 15.16%
Belton MO Sch Dist No 124 MO
Direct Deposit Prog(9) 6.00% 3/1/2020 AAA 1,770 2,003,516
Boone Cnty MO Reorg Sch Dist #R-6 6.00% 3/1/2020 AA+ 500 573,670
Franklin Cnty MO Reorg Sch
Dist #R-XV 6.00% 3/1/2020 AA+ 390 440,189
Hazelwood MO Sch Dist Impt-MO
Direct Deposit PG 5.25% 3/1/2020 Aaa 630 670,011
Ladue MO Sch Dist 5.25% 3/1/2016 AAA 2,180 2,335,151
Puerto Rico Comwlth Pub Impt 2.50% 7/30/2003 MIG1 2,000 2,009,820
Puerto Rico Comwlth Pub Impt
Pub Impt-Ser A(12)(18) 5.50% 7/1/2029 AAA 1,000 1,149,650
Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 A- 3,595 3,629,620
Springfield MO Sch Dist #R12
Direct Deposit Prog 5.85% 3/1/2020 AA+ 500 557,270
St. Louis Cnty MO Pattonville
Sch Dist #R-3(6) 6.00% 3/1/2019 AAA 845 965,759
St. Louis Cnty MO Sch
Dist #R-8 Lindbergh(12) Zero Coupon 3/1/2017 AAA 2,940 1,596,008
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
MISSOURI TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
St. Louis Cnty MO Sch
Dist #R-8 Lindbergh(12) Zero Coupon 3/1/2018 AAA $ 3,015 $ 1,557,308
St. Louis MO Brd Ed MO Direct
Dep Prog-Ser A 5.25% 4/1/2019 AA+ 2,975 3,202,379
St. Louis MO Pub Safety(6) 5.125% 2/15/2018 AAA 270 283,659
University City MO Sch Dist(12) 10.00% 2/15/2008 AAA 1,175 1,560,482
--------------
TOTAL 22,534,492
--------------
HEALTHCARE 6.47%
Cape Girardeau Cnty MO Ind
Dev Auth Health Care Facs Rev 5.75% 6/1/2032 A-(b) 1,900 1,925,479
Hannibal MO Ind Dev Auth Hlth
Fac Rev Regl Hosp Ser A(9) 5.625% 3/1/2012 AAA 2,170 2,384,070
Missouri St Hlth & Ed Fac
Auth Hlth Midwest Ser B(12) 6.25% 2/15/2022 AAA 2,175 2,210,670
Missouri St Hlth & Ed Fac
Auth Rev(2) 5.25% 6/1/2028 AAA 2,000 2,065,940
Missouri St Hlth & Ed Fac
Auth Rites PA-1049 RIBs(2) 15.931% 6/1/2010 AAA 855 1,036,183
--------------
TOTAL 9,622,342
--------------
HOUSING 6.57%
MO St Dev Fin Brd Multi Fam
Rev Quality Hill Pj Ser A(3) 5.60% 9/15/2028 AA 2,115 2,158,252
MO St Dev Fin Brd Solid Waste
Disp Rev P & G Paper Pj AMT 5.20% 3/15/2029 AA- 1,000 1,031,820
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Mtg AMT(10)(7) 6.22% 3/1/2026 AAA 3,395 3,509,513
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Mtg Rev AMT(11) 5.375% 9/1/2022 AAA 2,070 2,133,425
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Mtg Ser A AMT(10) 6.75% 6/1/2024 AAA 130 131,446
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Ser E-1 AMT(11) Zero Coupon 3/1/2029 AAA 3,245 798,010
--------------
TOTAL 9,762,466
--------------
INDUSTRIAL 0.92%
Childrens TR FD PR TOB
Asset-Bkd Bds 5.50% 5/15/2039 A1 1,500 1,363,140
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
MISSOURI TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
LEASE 8.80%
Gladstone MO Ctfs Partn Ser A(2) 5.35% 6/15/2016 Aaa $ 1,095 $ 1,190,900
Grandview MO CTFS Partn(6) 5.00% 1/1/2027 Aaa 3,000 3,064,800
Jackson Cnty MO Leasehold Rev
Cap Apprec-Truman Sports(2) Zero Coupon 12/1/2020 AAA 750 325,080
MO Dev Fin Brd Cultural Facs
Nelson Gallery Fndtn Ser A(12) 5.00% 12/1/2030 AAA 4,650 4,778,014
Puerto Rico Comwlth Ser A 5.50% 10/1/2040 AAA 2,700 2,909,142
Springfield MO Ctr City Dev
Jordan Vy Pk Exposition Ctr A(2) 5.00% 6/1/2027 Aaa 800 816,456
--------------
TOTAL 13,084,392
--------------
MISCELLANEOUS 16.38%
BI State Dev Agy MO Met Dist
Metrolink Cross Cnty Proj-B(9) 5.25% 10/1/2014 AAA 5,000 5,622,650
BI State Dev Agy MO Met Dist
Metrolink Cross Cnty Proj-B(9) 5.00% 10/1/2032 AAA 3,000 3,053,970
Kansas City MO Muni Assistance
Corp Rev Leasehold-Ser 2001A(2) 5.00% 3/1/2019 AAA 1,500 1,576,320
Kansas City MO Muni
Assistance Corp Rev Ser A 5.125% 3/1/2019 A2 1,100 1,148,411
Kansas City MO Muni
Assistance Leasehold Bartle(12) 5.00% 4/15/2020 AAA 1,500 1,540,140
Lafayette Cnty MO Pub Facs
Justice Ctr Proj(6) 4.50% 12/1/2022 AAA 1,500 1,486,395
MO St Ctfs Partn Bonne Terre
Prison Pj Ser A(2) 5.15% 6/1/2018 AAA 1,015 1,065,689
MO St Dev Fin Brd Infra Fac
Rev Hartman Hrtge Ctr Ser A(2) 5.875% 4/1/2020 Aaa 1,000 1,118,250
Puerto Rico Pub Bldg Auth Rev
Gtd Govt Fac Ser D 5.25% 7/1/2036 A- 1,250 1,279,313
Puerto Rico Pub Bldg Auth Rev
Ref-Govt Facs-Ser C 5.75% 7/1/2018 A- 1,000 1,123,770
St. Louis MO Mun Fin Corp Lease
Carnahan Courthouse-Ser A(6) 5.125% 2/15/2027 Aaa 1,500 1,549,005
St. Louis MO Mun Fin Corp
Lease Impt City Justice Ctr Ser A(2) 6.00% 2/15/2020 Aaa 760 865,556
St. Louis MO Ind Dev Auth Rev
Convention Ctr Hotel(2) Zero Coupon 7/15/2020 AAA 2,000 885,520
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
MISSOURI TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
St. Louis MO Ind Dev Auth Rev
Kiel Ctr Multi Purp Arena AMT 7.875% 12/1/2024 BBB(a) $ 2,000 $ 2,036,820
--------------
TOTAL 24,351,809
--------------
PRE-REFUNDED 16.58%
Clay Cnty MO Pub Bldg Auth
Leasehold Rev(6) 7.00% 5/15/2014 AAA 1,000 1,065,630
Missouri Sch Brds Assoc Lease
Partn NIXA Reorg Sch Dist R-2(3) 5.40% 3/1/2020 AA 850 898,765
Missouri St Envr Impt & Enrg
Prerefunded St Revolv FD Ser B 7.20% 7/1/2016 Aaa 1,130 1,236,932
Missouri St Envr Impt & Enrg
Prerefunded St Revolving FD-D 5.90% 1/1/2019 Aaa 1,860 2,085,767
Missouri St Envr Impt & Enrg
Prerefunded St Revolving FD-E 5.625% 7/1/2016 Aaa 630 719,429
Missouri St Hlth & Ed Fac
Auth BJC Hlth Sys Ser A ETM 6.50% 5/15/2020 Aa2 4,900 5,260,248
Missouri St Hlth & Ed Fac
Auth St. Louis Univ High Sch 6.35% 10/1/2014 A2 1,750 1,901,095
Missouri St Hlth & Ed Fac
Auth Washington Univ Ser A 6.00% 3/1/2030 Aaa 850 1,003,315
Municipal Secs Trust Ctfs
Ser 7005 Cl B RIBs ETM 9.527% 10/1/2040 Aaa 3,050 3,522,506
St. Louis MO Mun Fin Corp
Lease Rev City Justice Ctr Ser A(2) 6.00% 2/15/2019 AAA 3,500 3,984,890
St. Louis MO Pkg Fac Rev ETM(12) 5.375% 12/15/2021 AAA 10 10,605
St. Louis MO Sch Dist(6) 6.00% 4/1/2012 AAA 645 647,161
University MO Univ Rev Sys Facs 5.80% 11/1/2027 AA+ 1,975 2,299,907
--------------
TOTAL 24,636,250
--------------
RESOURCE RECOVERY 2.24%
Missouri St Envr Impt & Enrg
Unrefunded Bal St Revolving A 6.55% 7/1/2014 Aaa 560 572,645
Missouri St Envr Impt & Enrg
Unrefunded Bal St Revolving B 7.20% 7/1/2016 Aaa 1,120 1,218,605
Missouri St Envr Impt & Enrg
Unrefunded Bal St Revolving D 5.625% 7/1/2016 Aaa 220 243,245
Missouri St Envr Impt & Enrg
Unrefunded Bal St Revolving E 5.90% 1/1/2019 Aaa 240 263,746
St. Louis MO Ind Dev Auth
Anheuser-Busch Pj AMT 5.875% 11/1/2026 A+ 1,005 1,028,165
--------------
TOTAL 3,326,406
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
MISSOURI TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION 11.98%
Columbia MO Spl Oblig Cap Impt 5.50% 2/1/2016 AA- $ 330 $ 359,403
Lake of the Ozarks Cmnty Brdg
Corp MO Brdg Sys Rev 5.25% 12/1/2026 BBB-(b) 1,475 1,405,793
Lake of the Ozarks Cmnty Brdg
Corp MO Brdg Sys Rev Ref ACA(1)(15) 5.25% 12/1/2020 A 1,070 1,105,342
Missouri St Hwy & Trans Comm Ser A 5.00% 2/1/2021 AA 1,680 1,744,260
Missouri St Hwy & Trans Comm
St Rd Rev Ser A 5.00% 2/1/2022 AA 1,970 2,033,730
Missouri St Hwy & Trans Comm
St Rd Rev Ser A 5.25% 2/1/2020 AA 1,830 1,956,947
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.521% 1/1/2010 A 2,500 2,924,700
St. Louis MO Arpt Rev Airport
Dev Prog Ser A(12) 5.25% 7/1/2031 AAA 2,000 2,067,420
St. Louis MO Arpt Rev Airport Ser A(12) 5.125% 7/1/2022 AAA 2,000 2,056,020
St. Louis MO Arpt Rev Cap
Impt Prog-Ser A(12) 5.00% 7/1/2032 AAA 1,500 1,522,080
St. Louis MO Arpt Rev Lambert
Intl Ser B AMT(6) 5.25% 7/1/2027 AAA 625 634,581
--------------
TOTAL 17,810,276
--------------
WATER/SEWER 2.68%
St. Charles Cnty MO Pub Wtr
Supply Dist #2 Ctfs Partn(12) 5.00% 12/1/2026 Aaa 875 892,824
St. Charles Cnty MO Pub Wtr
Supply Dist #2 Ctfs Partn(12) 5.125% 12/1/2027 Aaa 3,000 3,085,380
--------------
TOTAL 3,978,204
--------------
TOTAL MUNICIPAL BONDS (Cost $137,695,184) $ 145,258,906
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2003
<Table>
MUNICIPAL BONDS 98.22%
EDUCATION 15.00%
Higher Ed Student Assist Auth
NJ Student Loan Rev Ser A AMT(12) 6.15% 6/1/2019 AAA 1,000 1,068,600
New Jersey St Ed Fac Auth
Princeton Theological Seminary 5.00% 7/1/2026 AAA 2,500 2,574,600
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
New Jersey St Ed Fac Auth Rev
Higher Ed Cap Impt-Ser A(2) 5.25% 9/1/2019 AAA $ 2,000 $ 2,176,380
New Jersey St Ed Fac Auth Rev
Higher Ed Cap Impt-Ser A(2) 5.00% 9/1/2012 AAA 1,625 1,806,561
New Jersey St Ed Fac Auth Rev
Princeton Ser B 5.125% 7/1/2019 AAA 355 375,047
New Jersey St Ed Fac Auth Rev
Princeton Ser H 5.25% 7/1/2017 AAA 700 759,556
New Jersey St Ed Fac Auth Rev
Princeton Ser H 5.25% 7/1/2022 AAA 2,560 2,716,390
New Jersey St Ed Fac Auth Rev
Princeton Ser H 5.375% 7/1/2024 AAA 2,550 2,718,912
New Jersey St Ed Fac Auth Rev
Princeton Ser H 5.25% 7/1/2026 AAA 2,350 2,453,330
New Jersey St Ed Fac Auth Rev
Ser H-Ramapo Clg Of NJ(6) 5.00% 7/1/2019 AAA 1,875 1,972,669
New Jersey St Ed Fac Auth Rev
Wm Paterson Ser E(13) 5.00% 7/1/2027 AAA 2,500 2,548,025
Rutgers St Univ NJ Ser A 5.20% 5/1/2027 AA 750 769,995
Rutgers St Univ NJ Ser B(6) 4.75% 5/1/2034 AAA 1,395 1,392,698
University Medicine & Dentist
NJ Ctfs Partn(2) 5.00% 4/15/2025 AAA 500 511,480
--------------
TOTAL 23,844,243
--------------
GENERAL OBLIGATION 14.44%
Chathams Dist NJ Brd Ed(12) 5.25% 1/15/2026 Aaa 1,500 1,562,085
Chathams Dist NJ Brd Ed(12) 5.125% 1/15/2024 Aaa 595 612,844
Chathams Dist NJ Brd Ed(12) 5.00% 1/15/2019 Aaa 1,020 1,072,948
Millburn Township NJ Sch Dist 5.35% 7/15/2019 Aa1 250 284,600
Millburn Township NJ Sch Dist 5.35% 7/15/2018 Aa1 1,050 1,201,756
Montville Township NJ Fire Dist No 23 5.25% 7/15/2016 A2 410 453,021
Morristown NJ(9) 6.50% 8/1/2019 AAA 3,440 3,864,358
Ocean Cnty NJ Gen Impt 5.125% 9/1/2020 Aa1 1,800 1,907,622
Paterson NJ(9) 9.30% 2/15/2004 AAA 4,200 4,495,386
Pohatcong Township NJ Sch Dist(9) 5.25% 7/15/2026 AAA 1,335 1,452,093
Puerto Rico Comwlth Pub Impt(9)(16) 4.50% 7/1/2023 AAA 1,000 1,000,550
Puerto Rico Comwlth Pub Impt
Ref Ser A(13) 5.50% 7/1/2017 AAA 1,000 1,154,540
Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 A- 1,840 1,857,719
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Washington Township NJ Brd Ed(6) 5.00% 1/1/2027 Aaa $ 2,000 $ 2,039,600
--------------
TOTAL 22,959,122
--------------
HEALTHCARE 11.97%
Camden Cnty NJ Impt Auth Rev
Hlthcare Pj Cooper(1)(15) 6.00% 2/15/2027 A 2,145 2,237,256
NJ Econ Dev Auth Rev Masonic
Charity Fndtn Pj 6.00% 6/1/2025 A+ 1,000 1,096,600
NJ Hlthcare Fac Fin Auth
Hunterdon Med Ctr Ser A(2) 7.00% 7/1/2020 AAA 5,000 5,023,700
NJ Hlthcare Fac Fin Auth Rev
Bayonne Hosp(9) 6.25% 7/1/2012 AAA 1,370 1,470,216
NJ Hlthcare Fac Fin Auth Rev
Fha Insd Mtg Englewood Hosp(7)(12) 5.25% 8/1/2013 AAA 1,445 1,615,409
NJ Hlthcare Fac Fin Auth Rev
Robert Wood Johnson Univ Hosp 5.75% 7/1/2031 A+ 3,500 3,690,190
NJ Hlthcare Fac Fin Auth Rev
Spectrum For Living Ser B(7) 6.50% 2/1/2022 AAA 810 821,024
NJ Hlthcare Fac Fin Auth Rev
St. Peters Univ Hosp Ser A 6.875% 7/1/2030 Baa1 410 437,966
Puerto Rico Ind Tourist Ed
Med & Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2030 AA 1,000 1,094,620
Puerto Rico Ind Tourist Ed
Med Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2025 AA 415 455,662
Puerto Rico Ind Tourist Ed
Med Mutuo Oblig Grp Ser A(12) 6.25% 7/1/2024 AAA 1,000 1,086,880
--------------
TOTAL 19,029,523
--------------
HOUSING 0.11%
Virgin Islands Hsg Fin Auth
Sing Fam Rev Ser A AMT(10) 6.50% 3/1/2025 AAA 165 171,285
--------------
INDUSTRIAL 7.80%
New Jersey Economic Dev Auth
Amer Wtr Co Inc Ser B AMT(6) 5.375% 5/1/2032 AAA 5,000 5,194,900
New Jersey Economic Dev Auth
Middlesex Wtr Co Pj AMT(12) 5.35% 2/1/2038 AAA 2,500 2,590,850
Tobacco Settlement Fin Corp
Tobacco - Avg Life 15.5 yrs 6.75% 6/1/2039 A1 5,000 4,609,400
--------------
TOTAL 12,395,150
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
40
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
LEASE 1.61%
Monmouth Cnty NJ Impt Auth
Rev Govtl Ln(9) 5.00% 12/1/2021 AAA $ 500 $ 521,775
Union Cnty Impt Auth Rev
Lease Madison Redev(9)(c) 5.00% 3/1/2034 Aaa 2,000 2,037,500
--------------
TOTAL 2,559,275
--------------
MISCELLANEOUS 9.61%
Carteret NJ Brd Ed Ctfs Partn(12) 6.00% 1/15/2024 Aaa 430 485,547
Carteret NJ Brd Ed Ctfs Partn(12) 5.75% 1/15/2030 Aaa 80 87,504
Casino Reinvestment Dev
Ath NJ Ser A(9) 5.25% 10/1/2015 AAA 100 109,659
Garden St Preservation TR NJ
Cap Apprec-Sec B(9) Zero Coupon 11/1/2028 AAA 5,655 1,555,691
Hudson Cnty NJ Impt Auth
Hudson Regl Fire/Rescue Ser A(2) 5.625% 9/1/2019 Aaa 100 110,899
Monmouth Cnty NJ Impt Auth
Rev Govt Ln(12) 6.40% 12/1/2009 AAA 1,075 1,177,921
NJ Bldg Auth St Bldg Rev 5.375% 6/15/2019 AA- 450 484,484
NJ Bldg Auth St Bldg Ser A(9) 5.25% 12/15/2020 AAA 1,800 1,947,708
NJ Bldg Auth St Bldg Ser A(9) 5.25% 12/15/2019 AAA 1,000 1,090,380
NJ Econ Dev Auth Rev Station
Plaza Pk & Ride LP AMT 7.00% 7/1/2016 BBB(a) 4,245 4,314,576
NJ Envr Infrastructure 5.25% 9/1/2020 AAA 2,000 2,152,480
North Bergen Twp NJ Brd Ed
Ctfs Partn(9) 6.125% 12/15/2022 Aaa 1,185 1,364,219
Rahway NJ Ctfs Partn(12) 5.625% 2/15/2020 Aaa 365 399,157
--------------
TOTAL 15,280,225
--------------
POWER 1.29%
Brick Twp NJ Muni Util Auth(6) 5.00% 12/1/2025 Aaa 2,000 2,044,480
--------------
PRE-REFUNDED 14.47%
Essex Cnty NJ Impt Auth Rev
Orange Muni Util & Lease(12) 6.80% 7/1/2014 AAA 1,710 1,946,835
LaFayette Yard NJ Cmnty Dev(12) 5.625% 4/1/2021 Aaa 200 232,464
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM 9.527% 10/1/2040 Aaa $ 1,000 $ 1,154,920
NJ Hlthcare Fac Fin Auth Rev
Bayonne Hosp Oblig(9) 6.25% 7/1/2012 AAA 230 249,072
NJ St Transn Tr Fd Auth
Transn Sys Ser B 6.00% 6/15/2019 AA- 6,500 7,684,690
Pohatcong Township NJ Sch Dist(9) 5.95% 7/15/2023 AAA 650 749,905
Pohatcong Township NJ Sch Dist(9) 5.95% 7/15/2026 AAA 250 288,425
Puerto Rico Comwlth Pub Impt RIBs 10.239% 7/1/2029 A- 750 911,475
Puerto Rico Elec Pwr Auth
Ser T RIBs(9) 11.29% 7/1/2018 AAA 7,000 8,178,730
South Brunswick Township NJ(6) 5.625% 12/1/2023 AAA 45 52,526
Summit NJ 5.70% 6/1/2020 AAA 325 376,987
Trenton NJ Pkg Auth Pkg Rev(6) 6.00% 4/1/2017 Aaa 1,000 1,177,660
--------------
TOTAL 23,003,689
--------------
RESOURCE RECOVERY 1.13%
Cape May Cnty NJ Ind Poll Ctrl
Fin Auth Rev Atlan City Ser B(12) 7.00% 11/1/2029 AAA 500 551,475
Salem Cnty NJ Poll Ctl Fin
Ref PSEG Pwr Pj Ser A AMT 5.75% 4/1/2031 Baa1 1,250 1,237,975
--------------
TOTAL 1,789,450
--------------
TRANSPORTATION 18.64%
Delaware Riv & Bay Auth Rev(12) 5.00% 1/1/2033 AAA 1,000 1,022,380
Delaware River Port Auth PA &
NJ Ref Port Dist Pj Ser B(9) 5.20% 1/1/2025 AAA 1,700 1,783,878
Delaware River Port Auth PA &
NJ Ref Port Dist Pj Ser B(9) 5.10% 1/1/2021 AAA 1,435 1,505,042
Delaware River Port Auth
PA & NJ Rev(6) 5.50% 1/1/2026 AAA 1,000 1,070,570
New Jersey St Hwy Auth Garden
St Pkwy Gen Rev(6) 5.75% 1/1/2015 AAA 200 228,138
New Jersey St Tpk Auth Rev Ser A 5.50% 1/1/2027 A- 3,000 3,160,140
New Jersey St Tpk Auth Rev Ser A(12) 5.50% 1/1/2030 AAA 1,500 1,613,400
Port Auth NY & NJ(9) 5.00% 4/15/2032 AAA 5,125 5,242,772
Port Auth NY & NJ Cons 109th Ser 5.375% 1/15/2032 AA- 500 519,785
Port Auth NY & NJ Cons 119th
Ser AMT(6) 5.50% 9/15/2019 AAA 150 157,844
Port Auth NY & NJ Cons 125th Ser(9) 5.00% 10/15/2027 AAA 5,000 5,145,250
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
42
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Puerto Rico Comwlth Hwy &
Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A $ 1,000 $ 1,079,400
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.521% 1/1/2010 A 2,750 3,217,170
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(9)(16) 10.58% 7/1/2026 Aaa 500 593,410
Puerto Rico Comwlth Hwy &
Transn Auth Ser B(12)(18) 6.00% 7/1/2026 AAA 3,015 3,296,631
--------------
TOTAL 29,635,810
--------------
WATER/SEWER 2.15%
Middlesex Cnty NJ Impt Auth
Util Sys Rev Cap Apprec Ser B(2) Zero Coupon 9/1/2023 AAA 3,000 1,110,210
North Hudson Swr Auth NJ
Rev Ser C(12) 5.00% 8/1/2022 Aaa 1,025 1,064,534
Ocean Twp NJ Swr Auth Ref Ser B(6) 5.25% 12/1/2011 Aaa 170 192,734
Passaic Valley NJ Sew Commrs
Swr Sys Ser F(6) 5.00% 12/1/2020 Aaa 1,000 1,049,690
--------------
TOTAL 3,417,168
--------------
TOTAL MUNICIPAL BONDS (Cost $147,050,281) 156,129,420
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 0.88%
FINANCIAL SERVICES 0.88%
Dreyfus NJ Muni Cash Management (Cost $1,407,668) 1,408 1,407,668
==============
TOTAL INVESTMENTS 99.10% (Cost $148,457,949) $ 157,537,088
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
NEW YORK TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
---------
MUNICIPAL BONDS 96.59%
EDUCATION 11.22%
Geneva NY Indl Dev Agy Civic
Fac Rev Hobart & William Smith(6) 4.25% 2/1/2017 AAA $ 370 372,050
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Hempstead Town NY Ind Dev Agy
Civic Fac Rev Hofstra Univ Pj(12) 5.80% 7/1/2015 AAA $ 750 $ 845,512
New York NY City Ind Dev Agy
Marymount Sch of NY Pj(1) 5.125% 9/1/2021 A 575 588,725
New York NY City Ind Dev
Agy NY Institute of Tech(12) 5.25% 3/1/2023 AAA 600 633,180
New York St Dorm Auth Lease
Rev Court Fac Zero Coupon 8/1/2022 AA+ 2,675 1,061,440
New York St Dorm Auth Lease
Rev Court Fac Zero Coupon 8/1/2021 AA+ 3,600 1,530,972
New York St Dorm Auth Lease St Univ 5.00% 7/1/2032 AA- 1,000 1,008,770
New York St Dorm Auth Lease St Univ 5.375% 7/1/2022 AA- 1,000 1,065,510
New York St Dorm Auth Lease
St Univ Dorm Facs Ser A 6.00% 7/1/2030 A+ 3,500 3,917,970
New York St Dorm Auth Lease
St Univ Dorm Facs Ser A 6.25% 7/1/2020 A+ 1,250 1,450,925
New York St Dorm Auth Rev
4201 Schools Program 6.25% 7/1/2020 AA- 1,685 1,950,051
New York St Dorm Auth Rev
City Univ Sys Cons 4th Gen A 5.50% 7/1/2023 AA- 1,215 1,302,152
New York St Dorm Auth Rev
Colgate Univ(12) 6.00% 7/1/2016 AAA 1,000 1,207,460
New York St Dorm Auth Rev
New York Univ Ser A(2) 5.75% 7/1/2015 AAA 2,000 2,348,820
New York St Dorm Auth Rev
Pace Univ(12) 6.00% 7/1/2029 AAA 1,610 1,807,627
New York St Dorm Auth Rev
Pratt Institute(3) 6.00% 7/1/2028 AA 2,000 2,230,160
New York St Dorm Auth Rev
Pratt Institute(3) 6.00% 7/1/2024 AA 1,000 1,118,010
New York St Dorm Auth Rev Sp
Act Sch Dist Pj(12) 6.00% 7/1/2016 AAA 1,400 1,549,044
New York St Dorm Auth Rev
Upstate Cmnty Colleges Ser A(9) 6.00% 7/1/2015 AAA 300 350,151
Rensselaer Cnty NY Ind Dev
Polytech Inst Ser B(2)(14) 5.50% 8/1/2022 AAA 200 214,344
Schenectady NY Ind Dev Agy
Civic Fac Rev Union College(2) 5.625% 7/1/2031 Aaa 1,500 1,610,415
St Lawrence Cnty NY Ind Civic
Fac Rev Clarkson Univ Proj 5.125% 7/1/2021 A3 250 256,082
--------------
TOTAL 28,419,370
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
44
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION 11.62%
Bethlehem NY AMT(12) 7.20% 3/1/2022 AAA $ 1,080 $ 1,194,934
New York NY 5.625% 3/15/2020 A 1,000 1,057,930
New York NY Ref - Ser B 5.75% 8/1/2016 A 1,000 1,082,410
New York NY Ser A(6)(14) 6.00% 5/15/2030 AAA 5,000 5,498,150
New York NY Ser C(9) 5.75% 3/15/2027 AAA 5,000 5,506,450
New York NY City Transitional Fin
Auth Future Tax Secd-Ser D(12) 5.00% 2/1/2022 AAA 5,000 5,168,400
Puerto Rico Comwlth 5.375% 7/1/2025 A- 1,640 1,703,747
Puerto Rico Comwlth Pub Impt 5.25% 7/1/2018 A- 2,000 2,173,280
Puerto Rico Comwlth Pub Impt(12) 5.00% 7/1/2024 AAA 1,000 1,036,670
Puerto Rico Comwlth Pub Impt(12)(18) 5.00% 7/1/2028 AAA 1,735 1,793,678
Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 1,645 1,700,732
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- 1,500 1,504,290
--------------
TOTAL 29,420,671
--------------
HEALTHCARE 7.02%
Columbia Cnty NY Ind Dev Agy
Civic Fac Rev Hudson(10) 6.875% 3/20/2037 Aaa 300 346,284
Cortland Cnty NY Ind Dev Agy
Cortland Mem Hosp Pj(3) 5.625% 7/1/2024 AA 1,750 1,872,938
New York NY City Hlth & Hosp 5.375% 2/15/2026 A3 1,000 1,012,240
New York NY City Hlth & Hosp
Corp Rev Health Sys-Ser A(2) 5.25% 2/15/2022 AAA 3,000 3,153,090
New York NY City Ind Dev Agy
Rev Harbor House Pj A(10) 5.875% 5/20/2044 AAA 610 661,569
New York St Dorm Auth Rev
Insd NY St Rehab Assn Ser A(2) 5.50% 7/1/2016 AAA 935 1,055,279
New York St Dorm Auth Rev
Lenox Hill Hosp Oblig Group 5.375% 7/1/2020 A3 1,000 1,034,140
New York St Dorm Auth Rev
Mental Hlth Svc Fac(12)(18) 6.00% 8/15/2012 AAA 1,460 1,733,881
New York St Dorm Auth Rev
Mental Hlth Svc Fac Impt Ser B(12) 6.00% 2/15/2030 AAA 1,000 1,113,290
New York St Dorm Auth Rev
Mental Hlth Svc Fac Impt Ser B(12) 6.00% 2/15/2025 AAA 1,000 1,116,460
New York St Dorm Auth Rev
Mental Hlth Svc Fac Ser D(12)(18) 6.00% 8/15/2021 AAA 1,000 1,114,060
New York St Dorm Auth Rev Mtg
Nursing Home A(12)(7) 5.50% 8/1/2038 AAA 1,000 1,051,020
New York St Dorm Auth Rev Mtg
Nursing Home A(12)(7) 5.40% 2/1/2031 AAA 300 312,279
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
New York St Dorm Auth Rev Mtg
Nursing Home A(12)(7) 5.50% 8/1/2030 AAA $ 1,000 $ 1,052,420
New York St Dorm Auth Rev Utd
Cerebral Palsy Aff #1-A(2) 5.75% 7/1/2018 AAA 1,000 1,143,500
--------------
TOTAL 17,772,450
--------------
HOUSING 0.63%
New York City Hsg Dev Corp
Multifamily Hsg Rev Ser A AMT 5.50% 11/1/2034 AA 1,500 1,532,160
New York St Mtg Agy Rev Home
Owner Mtg Ser 70 5.40% 4/1/2022 Aa1 70 72,400
--------------
TOTAL 1,604,560
--------------
INDUSTRIAL 0.44%
New York Ind Dev Agy Pkg
Royal Charter Properties, Inc.(9) 5.75% 12/15/2029 AAA 1,000 1,109,610
--------------
LEASE 2.52%
New York St Urban Dev Corp
Rev St Fac 5.70% 4/1/2020 AA- 4,150 4,758,556
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.75% 8/1/2030 BBB+ 1,500 1,618,725
--------------
TOTAL 6,377,281
--------------
MISCELLANEOUS 4.22%
New York NY City Tr Cultr Res
Rev Museum of American Art(1) 6.00% 7/1/2022 A 500 545,625
NY St Hsg Fin Agy St Economic Dev 5.00% 3/15/2033 AA 2,625 2,659,860
Puerto Rico Pub Bldg Auth Rev
Govt Fac 5.00% 7/1/2026 A- 2,000 2,007,200
Puerto Rico Pub Bldg Auth Rev
Govt Fac Ser D 5.25% 7/1/2027 A- 1,000 1,024,940
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.50% 8/1/2029 BBB+ 2,250 2,342,363
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.70% 8/1/2025 BBB+ 2,000 2,111,920
--------------
TOTAL 10,691,908
--------------
POWER 6.47%
Long Island Pwr Auth NY Elec
Sys Rev Gen Ser A(12)(18) 5.50% 12/1/2029 AAA 2,000 2,026,280
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
NY St Enrg Res & Dev Auth Fac
Rev Con Edison Inc Ser A AMT(12)(18) 7.125% 12/1/2029 AAA $ 2,500 $ 2,753,100
NY St Enrg Res & Dev Auth Gas
Fac Rev Brklyn Ser B RIBs AMT 12.304% 7/1/2026 A+ 4,000 4,842,280
Puerto Rico Elec Pwr Auth Rev Ser II 5.25% 7/1/2031 A- 3,625 3,717,147
Puerto Rico Elec Pwr Auth Rev Ser X 5.50% 7/1/2025 A- 2,915 3,044,747
--------------
TOTAL 16,383,554
--------------
PRE-REFUNDED 23.27%
Metropolitan Transn Auth NY
Commuter Fac Rev Ser A(6) 6.00% 7/1/2021 AAA 5,000 5,785,950
Metropolitan Transn Auth NY
Commuter Fac Rev Ser A(6) 6.10% 7/1/2026 AAA 2,000 2,320,680
Metropolitan Transn Auth NY
Commuter Fac Rev Ser A(6) 6.00% 7/1/2016 AAA 2,000 2,351,660
Metropolitan Transn Auth NY
Dedicated Tax Fd Ser A(6) 4.75% 4/1/2028 AAA 2,500 2,755,450
Metropolitan Transn Auth NY
Dedicated Tax Fd Ser A(6) 6.00% 4/1/2030 AAA 3,800 4,501,290
Metropolitan Transn Auth NY
Svc Cntrct Trans Fac Ser O ETM 5.75% 7/1/2008 AAA 1,000 1,163,580
Metropolitan Transn Auth NY
Tran Fac Rev Svc Cntrct Ser R 5.50% 7/1/2017 AAA 1,000 1,173,730
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM 9.527% 10/1/2040 Aaa 2,000 2,309,840
New York City Muni Wtr Fin
Wtr & Sew Sys Rev Ser B 6.00% 6/15/2033 AA 3,360 4,023,231
New York City Transitional
Fin Auth Rev Future Tax 2nd Ser A 6.00% 8/15/2029 AA+ 200 239,400
New York City Transitional
Fin Auth Rev Future Tax 2nd Ser B 6.00% 11/15/2029 AA+ 2,000 2,390,920
New York City Transitional
Fin Auth Rev Future Tax 2nd Ser B 6.00% 11/15/2024 AA+ 950 1,135,687
New York City Transitional
Fin Auth Rev Unrefunded-Future Tax 5.50% 5/1/2025 AA+ 555 593,323
New York City Transitional
Fin Prerefunded Future Tax Secd C 5.50% 5/1/2025 AA+ 445 516,823
New York St Dorm Auth Lease
Rev St Univ Dorm Facs Ser A 5.50% 5/15/2026 AA- 75 85,259
New York St Dorm Auth Rev
City Univ 3rd Gen Res Ser 2(12) 6.875% 7/1/2014 AAA 5,650 6,165,732
New York St Dorm Auth Rev Ser B(9) 5.75% 5/15/2017 AAA 395 465,934
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
New York St Dorm Auth Rev
Upstate Cmnty Colleges Ser A 6.20% 7/1/2015 AAA $ 1,000 $ 1,127,680
New York St Enviro Fac Poll Ctrl
Rev St Wtr Ser E 6.875% 6/15/2014 AAA 2,795 3,031,038
Puerto Rico Comwlth Aqueduct &
Swr Auth Rev ETM 10.25% 7/1/2009 AAA 750 956,385
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.50% 7/1/2027 A 2,000 2,454,080
Puerto Rico Comwlth Pub Impt(12) 5.75% 7/1/2026 AAA 3,000 3,522,780
Puerto Rico Comwlth Pub Impt RIBs 10.239% 7/1/2029 A- 1,000 1,215,300
Puerto Rico Elec Pwr Auth Rev Ser X 6.00% 7/1/2015 Aaa 2,375 2,667,766
Puerto Rico Elec Pwr Auth Ser T RIBs(9) 11.29% 7/1/2018 AAA 3,500 4,089,365
Tompkins Cnty NY Ind Dev Agy
Civic Fac Cornell Univ Lake 5.75% 7/1/2030 AA+ 1,500 1,773,435
Tompkins Cnty NY Ind Dev Agy
Civic Fac Cornell Univ Lake 5.625% 7/1/2020 AA+ 115 135,035
--------------
TOTAL 58,951,353
--------------
RESOURCE RECOVERY 6.20%
New York St Enrg Res & Dev Auth
Poll Ctrl Rev Niagara Mohawk Ser A(6) 7.20% 7/1/2029 AAA 11,750 12,784,470
New York St Enviro Fac Poll Ctrl
Rev St Wtr Revolving Fd Ser A 7.50% 6/15/2012 AAA 780 785,124
New York St Enviro Fac Poll Ctrl
Rev St Wtr Ser E 6.875% 6/15/2014 AAA 1,985 2,137,607
--------------
TOTAL 15,707,201
--------------
SPECIAL TAX 2.69%
New York St Urban Dev Corp
Rev Personal Income Tax Ser C 5.00% 3/15/2033 AA 1,500 1,508,145
New York NY City Transitional Fin
Future Tax(2) 5.25% 8/1/2022 AAA 5,000 5,302,350
--------------
TOTAL 6,810,495
--------------
TRANSPORTATION 17.90%
Metropolitan Trans Auth NY
Rev Ref-Transn-Ser E 5.25% 11/15/2031 A 3,080 3,178,406
Metropolitan Transn Auth NY
Ded Tax Fd(9) 5.00% 11/15/2032 AAA 230 232,967
Metropolitan Transn Auth NY Ser B 5.25% 1/1/2031 AA- 2,200 2,268,068
New York NY City Transn Auth(2) 10.33% 1/1/2030 Aaa 5,000 5,944,900
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
48
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Niagara NY Frontier Auth Arpt
Buffalo Niagara Int Arpt Ser B(12) 5.50% 4/1/2019 AAA $ 690 $ 748,202
Port Auth NY & NJ Cons 106th
Ser AMT 6.00% 7/1/2015 AA- 350 387,226
Port Auth NY & NJ Cons 127th
Ser AMT(2) 5.125% 6/15/2037 AAA 2,000 2,046,960
Port Auth NY & NJ Cons 93rd Ser 6.125% 6/1/2094 AA- 7,500 8,833,125
Port Auth NY & NJ Sp Oblig
Rev 5th Instllmnt Spl Pj Ser 4 AMT 6.75% 10/1/2019 BBB(a) 2,970 3,084,196
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 A 1,000 1,051,460
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A 4,500 4,746,960
Puerto Rico Comwlth Hwy &
Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 6,000 6,476,400
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.521% 1/1/2010 A 2,000 2,339,760
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser D 5.75% 7/1/2041 A 2,000 2,169,880
Puerto Rico Comwlth Hwy &
Transn Auth Ser B(12) 5.875% 7/1/2035 AAA 750 840,248
Puerto Rico Comwlth Hwy &
Transn Auth Sub PR St Infras 5.00% 7/1/2028 A- 1,000 1,001,730
--------------
TOTAL 45,350,488
--------------
WATER/SEWER 2.39%
Albany NY Muni Wtr Fin Auth
Wtr & Swr Sys Rev Ser A(6) 6.375% 12/1/2017 AAA 650 767,851
Buffalo NY Muni Wtr Fin Auth
Wtr Sys Rev(6) 5.75% 7/1/2021 AAA 500 551,095
Buffalo NY Muni Wtr Fin Auth
Wtr Sys Rev(9) 6.00% 7/1/2029 AAA 500 563,960
New York City Muni Wtr Fin
Unrefunded Balance Ser B 6.00% 6/15/2033 AA 1,470 1,734,041
New York St Environmental Wtr &
Drinking Revolving Ser A 6.00% 6/15/2019 AAA 1,500 1,701,930
Upper Mohawk NY Regl Wtr Fin
Auth NY Wtr Sys Rev(2) 5.75% 4/1/2020 Aaa 650 726,265
--------------
TOTAL 6,045,142
--------------
TOTAL MUNICIPAL BONDS (Cost $227,204,435) 244,644,083
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
INTEREST MATURITY SHARES
INVESTMENTS RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT 2.57%
FINANCIAL SERVICES 2.57%
Dreyfus New York Muni Cash Management (Cost $6,510,098) 6,510 $ 6,510,098
==============
TOTAL INVESTMENTS 99.16% (Cost $233,714,533) $ 251,154,181
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
TEXAS TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
S&P OR AMOUNT
MOODY'S (000)
------- ---------
MUNICIPAL BONDS 94.86%
EDUCATION 8.84%
Houston TX Higher Ed Fin Corp
Higher Ed Rev Rice Univ Proj - Ser A 5.375% 11/15/2029 AAA $ 1,000 1,047,960
Southwest Higher Ed Auth Inc
Southern Methodist Univ(2) 5.125% 10/1/2032 AAA 750 760,350
University TX Univ Rev Fin Sys Ser A 5.375% 8/15/2017 AAA 3,030 3,288,550
University TX Univ Rev Fin Sys Ser B 5.00% 8/15/2033 AAA 2,000 2,022,480
--------------
TOTAL 7,119,340
--------------
GENERAL OBLIGATION 34.56%
Azle TX Indpt Sch Dist Ser A 6.00% 2/15/2022 Aaa 250 251,182
Barbers Hill Isd Ref - Tx Ref 5.00% 2/15/2027 AAA 945 955,215
Blanco TX Ctfs Oblig(13) 5.50% 8/15/2027 AAA 665 704,381
Canyon TX Indpt Sch Dist Ref &
Impt Ser A 5.375% 2/15/2025 AAA 365 384,250
Dallas Cnty TX Ref & Impt Ser A 5.00% 8/15/2020 AAA 450 466,155
Dallas TX Indpt Sch Dist Ref 5.00% 2/15/2021 AAA 300 309,081
El Paso TX Ctfs Oblig(12)(c) 4.75% 8/15/2028 AAA 1,000 982,570
Gregory Portland TX Indpt Sch Dist 5.50% 8/15/2020 AAA 1,075 1,162,699
Harris Cnty TX Ctfs Oblig 5.00% 8/15/2019 AA+ 360 374,198
Katy TX Indpt Sch Dist Ltd Tax 6.125% 2/15/2032 AAA 1,000 1,117,280
Laredo TX Indpt Sch Dist 5.25% 8/1/2024 AAA 1,000 1,035,270
Little Elm TX Indpt Sch Dist
Cap Apprec Ref Zero Coupon 8/15/2033 AAA 1,925 321,514
Mansfield TX Indpt Sch Dist 5.25% 2/15/2023 AAA 1,000 1,040,430
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
50
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
TEXAS TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Pearland TX Indpt Sch Dist 5.125% 2/15/2022 AAA $ 1,500 $ 1,547,010
Pearland TX Indpt Sch Dist Bd Ser A 5.875% 2/15/2019 AAA 1,000 1,131,190
Pflugerville TX Indpt Sch Dist 5.00% 8/15/2026 AAA 1,000 1,010,160
Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 A- 1,000 1,009,630
San Antonio TX Indpt Sch Dist 5.50% 8/15/2024 AAA 1,000 1,057,600
Socorro TX Indpt Sch Dist Ref 6.00% 2/15/2015 AAA 920 1,029,655
Texas St Ser B RIBs 10.545% 9/30/2011 Aa1 5,500 7,575,645
Texas St Wtr Dev Brd 7.15% 8/1/2035 Aa1 1,600 1,712,416
United Indpt Sch Dist TX 5.125% 8/15/2026 AAA 1,000 1,024,230
Webster TX Ctfs Oblig Ser A(9) 6.00% 3/1/2017 AAA 1,440 1,641,240
--------------
TOTAL 27,843,001
--------------
HEALTHCARE 6.07%
Denton Cnty TX Hlth Fac Dev
Corp Rev Lutheran Social Svc 7.50% 8/15/2015 BB(b) 1,000 1,018,530
Harris Cnty TX Hlth Fac Dev
St. Lukes Episcopal Hosp Ser A 5.375% 2/15/2026 AA- 1,000 1,011,680
Harris Cnty TX Hlth Fac Mem
Hermann Hlthcare Ser A 6.375% 6/1/2029 A 1,750 1,864,065
Puerto Rico Ind Tourist Ed
Med Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2025 AA 910 999,162
--------------
TOTAL 4,893,437
--------------
INDUSTRIAL 16.03%
Cass Cnty TX Ind Dev Corp
Envr Impt Rev Ser A AMT 6.00% 9/1/2025 BBB 1,000 995,060
Orange Cnty TX Nav & Port
Dist Ind Dev Rev North Star Steel 6.375% 2/1/2017 A+ 2,400 2,541,936
Texas City TX Ind Dev Corp
Marine Term Rev Arco Pipe Line 7.375% 10/1/2020 AA+ 5,500 7,033,895
Tobacco Settlement Auth WA
Asset Backed 6.625% 6/1/2032 A1 1,500 1,386,030
Tobacco Settlement Fin Corp 7.00% 6/1/2041 A1 1,000 956,740
--------------
TOTAL 12,913,661
--------------
LEASE 1.30%
Harris Cnty Houston TX Sports
Auth Rev Sr Lien Ser G(12) 5.25% 11/15/2021 AAA 1,000 1,052,300
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
TEXAS TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
POWER 3.02%
Fort Bend Cnty TX Muni Util
Dist #25 (12) 6.00% 10/1/2028 AAA $ 2,170 $ 2,431,160
--------------
PRE-REFUNDED 5.20%
Municipal Secs Trust Ctfs
Ser 7005 Cl B RIBs ETM 9.527% 10/1/2040 Aaa 500 577,460
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.00% 7/1/2031 A 1,480 1,768,348
Puerto Rico Comwlth Pub Impt RIBs(12) 10.08% 7/1/2026 Aaa 500 674,260
San Antonio TX Indpt Sch Dist 5.75% 8/15/2015 AAA 1,000 1,167,720
--------------
TOTAL 4,187,788
--------------
RESOURCE RECOVERY 4.65
Gulf Coast Waste Disp Auth TX
Swr & Solid Waste Disp Rev AMT 5.90% 4/1/2036 A+ 1,500 1,567,005
Harris Cnty TX Ind Dev Corp
Marine Term & Wtr Poll Ctrl 6.625% 2/1/2024 BBB+ 1,100 1,138,720
Red River Auth TX Poll Ctl AMT 6.70% 11/1/2030 BBB 1,000 1,039,270
--------------
TOTAL 3,744,995
--------------
TRANSPORTATION 7.44%
Austin TX Arpt Sys Rev Prior
Lien Ser A AMT(12) 6.125% 11/15/2025 AAA 2,500 2,705,000
Houston TX Arpt Sys Rev Sub
Lien Ser B(9) 5.50% 7/1/2030 AAA 1,000 1,044,820
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser C 6.00% 7/1/2029 A 1,000 1,113,450
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(9)(16) 10.58% 7/1/2026 Aaa 950 1,127,479
--------------
TOTAL 5,990,749
--------------
WATER/SEWER 7.75%
Dallas TX Wtr Wks & Swr Sys Rev Ref 5.00% 10/1/2012 AA+ 750 808,523
El Paso TX Wtr & Swr Rev Ref &
Impt Ser A(9) 5.25% 3/1/2027 AAA 1,000 1,037,410
San Antonio TX Wtr Rev Ref Sys(9) 5.00% 5/15/2028 AAA 1,000 1,010,890
Upper Trinity Regl Wtr Dist
TX Wtr Rev Sys Ser 4(6) 6.00% 8/1/2026 AAA 3,025 3,387,455
--------------
TOTAL 6,244,278
--------------
TOTAL MUNICIPAL BONDS (Cost $69,574,811) 76,420,709
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
52
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
TEXAS TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
INTEREST MATURITY SHARES
INVESTMENTS RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT 4.74%
FINANCIAL SERVICES 4.74
Dreyfus Municipal Cash Management Plus -
Insurance Shares (Cost $3,819,353) 3,819 $ 3,819,353
==============
TOTAL INVESTMENTS 99.60% (Cost $73,394,164) $ 80,240,062
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
WASHINGTON TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
S&P OR AMOUNT
MOODY'S (000)
------- ---------
MUNICIPAL BONDS 98.12%
EDUCATION 7.85%
Univ WA Ed Resh Rev Roosevelt Pj(12)(18) 5.375% 6/1/2029 AAA $ 1,100 1,135,684
Univ WA Rev Student Fac Fee(9) 5.50% 6/1/2019 AAA 810 874,768
Washington St Higher Ed Fac
Auth Rev Gonzaga Univ Pj(12) 4.75% 4/1/2022 AAA 1,000 1,005,740
Western WA Univ Rev
Student Rec Fee(12) 5.00% 5/1/2033 AAA 900 908,469
--------------
TOTAL 3,924,661
--------------
GENERAL OBLIGATION 21.82%
Bremerton WA(2) 5.25% 12/1/2027 Aaa 1,440 1,496,304
King Cnty WA Sch Dist #405
Bellevue(6) 5.00% 12/1/2020 AAA 2,000 2,069,600
King Cnty WA Sch Dist #414
Lake Washington(9)(16) 5.50% 12/1/2019 AAA 1,000 1,076,880
King Cnty WA Sch Dist #411
Issaquah(6) 5.25% 12/1/2018 AAA 1,000 1,079,190
King Cnty WA Ser B 4.50% 1/1/2024 AA+ 320 306,240
King Cnty WA Ser B(12) 5.00% 1/1/2030 AAA 1,000 1,007,320
Port Seattle WA Ser B AMT 5.75% 12/1/2025 AA+ 750 801,113
Puerto Rico Pub Fin Corp
Comwlth App Ser A(2) 5.125% 6/1/2024 AAA 750 818,895
Snohomish Cnty WA(12) 4.50% 12/1/2023 AAA 1,000 967,260
Washington St Motor Vehicle
Fuel Ser 03-C(12) Zero Coupon 6/1/2030 AAA 5,000 1,166,800
Whatcom Cnty WA 5.75% 12/1/2012 A1 115 117,531
--------------
TOTAL 10,907,133
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
WASHINGTON TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
HEALTHCARE 2.19%
Puerto Rico Ind Tourist Ed
Med & Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2030 AA $ 1,000 $ 1,094,620
--------------
HOUSING 6.65%
Kitsap Cnty WA Cons Hsg Auth
Bremerton Govt Ctr(12) 5.00% 7/1/2034 Aaa 1,500 1,508,250
Skagit Cnty WA Hsg Auth Low
Income Hsg Assist Rev Mtg Ln(10) 7.00% 6/20/2035 AAA 750 798,127
Snohomish Cnty WA Hsg Auth
Rev Cedar St Apt Pj Ser A AMT 6.40% 5/1/2027 A 500 522,515
Washington St Hsg Fin Cmnty Sing
Fam Mtg Rev Mtg Ser A AMT(11) 7.05% 7/1/2022 AAA 480 492,845
--------------
TOTAL 3,321,737
--------------
INDUSTRIAL 2.77%
Tobacco Settlement Auth WA 6.625% 6/1/2032 A1 1,500 1,386,030
--------------
MISCELLANEOUS 0.94%
Bellevue WA Convention Ctr
Auth Sp Oblig Rev(12) Zero Coupon 2/1/2024 AAA 1,400 467,138
--------------
POWER 15.36%
Chelan Cnty WA Pub Util
Dist #1 Cons Rev Ser A AMT(12) 6.40% 7/1/2017 AAA 1,000 1,142,620
Clark Cnty WA Pub Util
Dist #1 Rev(9) 5.125% 1/1/2020 AAA 400 414,844
Douglas Cnty WA Pub Util
Dist #1 Wells Hydro 8.75% 9/1/2018 AA 350 440,381
Douglas Cnty WA Pub Util
Dist #1 Wells Hydro 2 Tier Ser B(2) 8.75% 9/1/2006 AAA 2,780 3,091,499
Grant Cnty WA Pub Util
Dist #002 Elec Rev Ser H(9) 5.00% 1/1/2022 AAA 1,000 1,021,480
Lewis Cnty WA Pub Util
Dist #1 Cowlitz Falls Hydro 5.50% 10/1/2022 Aa1 755 778,548
Seattle WA Mun Lt & Pwr Rev Ser A(12) 5.625% 9/1/2015 AAA 720 789,451
--------------
TOTAL 7,678,823
--------------
PRE-REFUNDED 19.69%
Douglas Cnty WA Pub Util
Dist #1 Wells Hydro 8.75% 9/1/2018 Aaa 150 193,039
Mount Vernon WA(2) 6.85% 12/1/2014 AAA 1,285 1,405,816
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
54
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
WASHINGTON TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Municipal Secs Trust Ctfs
Ser 7005 Cl B RIBs ETM 9.527% 10/1/2040 Aaa $ 1,000 $ 1,154,920
Ocean Shores WA Wtr & Swr(9) 5.50% 12/1/2021 Aaa 1,000 1,149,290
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.00% 7/1/2031 A 500 597,415
Puerto Rico Comwlth Pub Impt RIBs 10.239% 7/1/2029 A- 1,000 1,215,300
Renton WA Wtr & Swr Rev 6.55% 11/1/2013 A1 1,000 1,084,670
Vancouver WA Ltd Tax(2) 5.50% 12/1/2025 AAA 1,255 1,454,307
Washington St Higher Ed Fac
Auth Rev Whitworth College(5) 7.00% 10/1/2015 AAA 250 271,725
Washington St Ser A 5.75% 9/1/2019 AA+ 250 266,157
Washington St Ser B 5.75% 5/1/2016 AA+ 985 1,034,260
Washington St Ser B 5.75% 5/1/2016 AA+ 15 15,750
--------------
TOTAL 9,842,649
--------------
TRANSPORTATION 14.23%
Central Puget Sound WA Regl
Transit Auth Sales Tax & Motor(6) 5.25% 2/1/2021 AAA 1,750 1,896,160
Port Kalama WA Rev Ser B AMT 5.625% 12/1/2015 A3 400 414,052
Port Seattle WA Spl Fac Rev
Prerefunded Ser C AMT(12) 6.00% 9/1/2029 AAA 915 1,073,826
Port Seattle WA Spl Fac Rev
Unrefunded Balance Ser C AMT(12) 6.00% 9/1/2029 AAA 1,085 1,177,236
Puerto Rico Comwlth Hwy &
Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 1,000 1,079,400
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.521% 1/1/2010 A 750 877,410
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(9)(16) 10.58% 7/1/2026 Aaa 500 593,410
--------------
TOTAL 7,111,494
--------------
WATER/SEWER 6.62%
Pierce Cnty WA Swr Rev(2) 5.00% 8/1/2021 AAA 1,100 1,129,315
Seattle WA Wtr Sys Rev 5.25% 12/1/2023 AA 1,040 1,051,575
Vancouver WA Wtr & Swr Rev(6) 6.00% 6/1/2020 AAA 1,000 1,129,150
--------------
TOTAL 3,310,040
--------------
TOTAL MUNICIPAL BONDS (Cost $45,731,838) 49,044,325
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
WASHINGTON TAX-FREE FUND MARCH 31, 2003
<Table>
<Caption>
RATING:
INTEREST MATURITY S&P OR SHARES
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT 0.43%
FINANCIAL SERVICES 0.43%
Dreyfus Municipal Cash Management Plus
(Cost $213,973) 214 $ 213,973
==============
TOTAL INVESTMENTS 98.55% (Cost $45,945,811) $ 49,258,298
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
FLORIDA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
---------
MUNICIPAL BONDS 95.27%
EDUCATION 2.55%
Miami-Dade Cnty FL Ed Fac
Auth Rev Ser A(2) 6.00% 4/1/2023 AAA $ 2,000 2,258,420
--------------
GENERAL OBLIGATION 8.62%
Boca Raton FL 5.25% 7/1/2017 AAA 1,000 1,091,860
Boca Raton FL 5.25% 7/1/2016 AAA 1,615 1,760,528
Florida St Brd Ed Cap Outlay
Pub Ed Ser E 5.625% 6/1/2025 AA+ 1,000 1,078,610
Florida St Brd Ed Cap Outlay Ser A 5.25% 6/1/2024 AA+ 2,000 2,097,200
Puerto Rico Comwlth Pub Impt 5.25% 7/1/2017 A- 1,475 1,598,398
--------------
TOTAL 7,626,596
--------------
HEALTHCARE 7.64%
Highlands Cnty FL Fac Auth
Rev Hosp Adventist/Sunbelt Ser A 6.00% 11/15/2031 A- 2,000 2,101,360
Orange Cnty FL Hlth Fac Auth
Rev Hosp Orlando Regl 5.75% 12/1/2032 A2 1,000 1,015,460
Puerto Rico Ind Tourist Ed
Med Envr Ctrl Fac Hosp 6.50% 11/15/2020 AA 410 462,172
Sarasota Cnty FL Pub Hosp Brd
Rev Sarasota Mem Hosp Ser B(12) 5.50% 7/1/2028 AAA 2,875 3,180,900
--------------
TOTAL 6,759,892
--------------
HOUSING 1.64%
Lee Cnty FL Hsg Fin Auth Sing
Fam Mtg Rev AMT(11)(17) 6.40% 3/1/2029 Aaa 1,140 1,225,534
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
56
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FLORIDA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Orange Cnty FL Hsg Fin Auth
Ser A-1 AMT(11) Zero Coupon 3/1/2028 Aaa $ 865 $ 222,798
--------------
TOTAL 1,448,332
--------------
INDUSTRIAL 2.53%
Childrens TR FD PR TOB
Asset-Bkd Bds 5.50% 5/15/2039 A1 1,000 908,760
Lee Cnty FL Ind Dev Auth Ref
Bonita Springs Util Pj AMT(2) 5.125% 11/1/2019 AAA 1,250 1,331,588
--------------
TOTAL 2,240,348
--------------
LEASE 2.91%
Collier Cnty FL Sch Brd(9) 5.375% 2/15/2021 Aaa 1,000 1,077,740
Palm Beach Cnty FL Sch Brd Ser B(2) 5.375% 8/1/2016 AAA 1,350 1,498,109
--------------
TOTAL 2,575,849
--------------
MISCELLANEOUS 15.29%
Clearwater FL Rev Spring
Training Fac(12) 5.375% 3/1/2027 AAA 1,530 1,686,656
Clearwater FL Rev Spring
Training Fac(12) 5.375% 3/1/2031 AAA 470 519,801
Florida Muni Ln Council Rev(12) Zero Coupon 4/1/2020 AAA 4,000 1,804,280
Florida St Dept of Transportation 5.00% 7/1/2027 AA+ 1,500 1,530,030
Jacksonville FL Sales Tax Rev
Ref & Impt Loc Govt(6) 5.375% 10/1/2018 AAA 1,000 1,103,580
Miami-Dade Cnty FL Spl Oblig
Sub Ser A(12) Zero Coupon 10/1/2024 AAA 3,000 937,530
Miami-Dade Cnty FL Spl Oblig
Sub Ser B(12) 5.00% 10/1/2037 AAA 1,000 1,011,170
Orange Cnty FL Tourist Dev Sub(2) 5.125% 10/1/2025 AAA 1,445 1,487,483
Orange Cnty FL Tourist Dev
Tax Rev ETM(2) 6.00% 10/1/2016 AAA 710 712,698
Osceola Cnty Tourist Dev Tax
Rev Ser A(6) 5.00% 10/1/2032 AAA 1,400 1,423,282
Tampa FL Sports Auth Rev
Tampa Bay Arena Pj(12) 6.00% 10/1/2015 AAA 450 543,753
Village Ctr Cmnty Dev Dist FL
Rev Ser A(12) 5.00% 11/1/2032 AAA 750 764,512
--------------
TOTAL 13,524,775
--------------
PRE-REFUNDED 30.13%
Melbourne FL Wtr & Swr Rev ETM(6) Zero Coupon 10/1/2025 AAA 2,000 647,080
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FLORIDA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Miami-Dade Cnty FL Expwy Auth
Toll Sys Rev(6) 6.375% 7/1/2029 AAA $ 1,250 $ 1,519,188
Municipal Secs Trust Ctfs
Ser 7005 Cl B RIBs ETM 9.527% 10/1/2040 Aaa 1,250 1,443,650
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.50% 7/1/2027 A 1,000 1,227,040
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.00% 7/1/2031 A 2,000 2,389,660
Puerto Rico Comwlth Pub Impt RIBs 10.239% 7/1/2029 A- 2,000 2,430,600
Puerto Rico Comwlth Pub Impt RIBs(12) 10.08% 7/1/2026 Aaa 3,500 4,719,820
Puerto Rico Muni Fin Agy Ser A 6.50% 7/1/2019 AAA 2,915 3,149,424
Tampa Bay Wtr FL Util Sys Rev(6) 6.00% 10/1/2024 AAA 3,000 3,573,720
Tampa FL Rev Allegany Hlth
Sys St. Joseph(12) 6.70% 12/1/2018 AAA 5,000 5,555,950
--------------
TOTAL 26,656,132
--------------
RESOURCE RECOVERY 0.87%
Jacksonville FL Pollution Rev
Anheuser-Busch Pj 5.70% 8/1/2031 A+ 750 768,248
--------------
SPECIAL TAX 1.86%
Tampa FL Util Tax & Spl Rev
Ref-Ser A(2) 5.25% 10/1/2020 AAA 1,505 1,647,734
--------------
TRANSPORTATION 9.17%
Florida Ports Fin Commn Rev
St Transn TR FD Intermodal Pg AMT(6) 5.50% 10/1/2029 AAA 1,295 1,360,501
Jacksonville FL Port Auth
Arpt Rev Ser A AMT(6) 6.25% 10/1/2024 AAA 1,000 1,100,200
Miami-Dade Cnty FL Aviation
Ser A AMT(9) 5.125% 10/1/2035 AAA 1,900 1,902,109
Miami-Dade Cnty FL Expwy Auth
Toll Sys Rev Ref(6) 5.125% 7/1/2025 Aaa 750 772,485
Pensacola FL Arpt Rev Ser A AMT(12) 6.125% 10/1/2018 AAA 1,250 1,403,925
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser C 6.00% 7/1/2029 A 880 979,836
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(9)(16) 10.58% 7/1/2026 Aaa 500 593,410
--------------
TOTAL 8,112,466
--------------
WATER/SEWER 12.06%
Broward Cnty FL Wtr & Swr Ref(12) 4.50% 10/1/2025 AAA 2,000 1,939,420
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
58
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FLORIDA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Fort Lauderdale FL Wtr & Swr Rev(12) 4.625% 9/1/2028 AAA $ 1,285 $ 1,259,531
Melbourne FL Wtr & Swr Rev
Ref & Impt Ser A(6) 5.00% 10/1/2032 AAA 1,810 1,840,100
Miami Beach FL Stormwater Rev(6) 5.25% 9/1/2020 AAA 1,000 1,078,230
Miami Beach FL Wtr & Swr Rev(2) 5.50% 9/1/2027 AAA 1,000 1,076,130
Miami Beach FL Wtr & Swr Rev(2) 5.25% 9/1/2020 AAA 1,000 1,078,230
Ocala FL Wtr & Swr Rev(6) 5.25% 10/1/2027 Aaa 800 836,504
Sebring FL Wtr & Wastewtr Rev Ref(6) 5.25% 1/1/2020 AAA 500 540,765
Tampa FL Wtr & Swr Rev Ref Ser A 5.00% 10/1/2026 AA 1,000 1,019,691
--------------
TOTAL 10,668,601
--------------
TOTAL MUNICIPAL BONDS (Cost $76,627,542) 84,287,393
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 3.13%
FINANCIAL SERVICES 3.13%
Dreyfus Florida Municipal Money Market
Fund (Cost $2,770,262) 2,770 2,770,262
==============
TOTAL INVESTMENTS 98.40% (Cost $79,397,804) $ 87,057,655
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
GEORGIA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
---------
MUNICIPAL BONDS 96.29%
EDUCATION 20.80%
Athens - Clarke Cnty GA Uni
Gov Uga ref Ccrc Bldg LLC Pj(2) 5.00% 12/15/2032 AAA $ 2,000 2,035,240
Athens GA Hsg Auth Student
Hsg Univ of Georgia East Campus(2) 5.00% 12/1/2027 Aaa 3,000 3,062,040
Bulloch Cnty GA Dev Auth GA
So Univ Pj(2) 5.00% 8/1/2021 Aaa 500 521,165
Fulton Cnty GA Dev Auth Rev
GA Tech Athletic Assn(2) 5.50% 10/1/2017 AAA 1,000 1,119,590
Fulton Cnty GA Dev Auth Rev
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
59
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
GA Tech Fndtn Fdg Ser A 5.00% 11/1/2031 AA+ $ 1,400 $ 1,420,356
Fulton Cnty GA Dev Auth Rev
GA Tech Fndtn Sac II Pj Ser A 5.125% 11/1/2021 AA+ 750 789,570
Fulton Cnty GA Dev Auth Rev
Morehouse College Pj(2) 5.875% 12/1/2030 AAA 1,850 2,049,153
Fulton Cnty GA Dev Auth Rev
Tuff Morehouse Pj Ser A(2) 5.50% 2/1/2022 AAA 1,000 1,060,900
Private Colleges & Univ Auth
GA Emory Univ Pj Ser A 5.50% 11/1/2025 AA 1,000 1,065,550
Private Colleges & Univ Auth
GA Emory Univ Pj Ser A 5.50% 11/1/2020 AA 1,000 1,095,670
Private Colleges & Univ Auth
GA Rev Mercer Univ Pj 5.75% 10/1/2031 Baa1 500 523,260
Private Colleges & Univ Auth
Spelman College 5.25% 6/1/2021 Aa3 1,340 1,442,684
--------------
TOTAL 16,185,178
--------------
GENERAL OBLIGATION 11.21%
Atlanta GA ETM 5.60% 12/1/2015 AA- 95 99,004
De Kalb Cnty GA 6.00% 1/1/2020 Aaa 250 256,050
Forsyth Cnty GA Sch Dist 6.00% 2/1/2016 Aa2 2,000 2,314,220
Georgia St Ser C 7.25% 7/1/2005 AAA 1,500 1,690,320
Georgia St Ser C 7.25% 7/1/2006 AAA 1,000 1,170,630
Georgia St Ser F 5.00% 11/1/2018 AAA 1,000 1,068,210
Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 1,735 1,793,782
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- 330 330,944
--------------
TOTAL 8,723,160
--------------
HEALTHCARE 5.18%
Athens - Clarke Cnty GA Uni
Govt Catholic Health East Issue 5.50% 11/15/2032 A 1,000 1,007,360
Clarke Cnty GA Hosp Auth Rev
Ctfs Athens Regl Med Ctr Pj(12) 5.125% 1/1/2032 AAA 500 510,540
Cobb Cnty GA Hosp Auth Rev
Ref & Impt-Rev Antic Ctfs(2)(c) 5.25% 4/1/2024 AAA 1,000 1,064,150
Glynn Brunswick GA Mem Hosp
Auth Rev Southeast GA Hlth(12) 6.00% 8/1/2016 AAA 400 447,676
Puerto Rico Ind Tourist Ed
Med Envr Ctrl Fac Hosp 6.50% 11/15/2020 AA 410 462,172
Ware Cnty GA Hosp Auth Rev
Antic Ctfs(12) 5.50% 3/1/2021 Aaa 500 542,775
--------------
TOTAL 4,034,673
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
60
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
HOUSING 3.86%
Clayton Cnty GA Hsg Auth
Multi Fam Hsg Rev(10) 5.60% 12/20/2024 Aaa $ 500 $ 531,010
DeKalb Cnty GA Hsg Auth Multi
Fam Lakes At Indian Creek AMT(9) 7.15% 1/1/2025 AAA 500 528,410
GA St Hsg & Fin Auth Rev Sing
Fam Mtg Ser A Sub A-2 AMT(7) 6.40% 12/1/2015 AAA 240 244,706
GA St Hsg & Fin Auth Rev Sing
Fam Sub Ser D-2 AMT 5.75% 12/1/2031 AAA 1,160 1,194,777
Savannah GA Economic Dev Auth
Mltfmly Hsg Rev AMT(10) 5.15% 11/20/2022 AAA 500 506,085
--------------
TOTAL 3,004,988
--------------
INDUSTRIAL 0.93%
Albany Dougherty GA Payroll
Dev Auth Procter & Gamble AMT 5.20% 5/15/2028 AA- 500 514,910
Monroe Cnty GA Dev Auth Poll
GA Pwr Co Plant(2) 5.25% 7/1/2031 AAA 205 208,464
--------------
TOTAL 723,374
--------------
LEASE 4.48%
College Park GA Business Civic Ctr Pj(2) 5.75% 9/1/2026 AAA 450 495,468
Georgia Mun Assn Inc Ctfs
City Court Atlanta Pj(2) 5.25% 12/1/2026 AAA 750 785,445
Puerto Rico Pub Fin Corp
Comwlth Approp Ser A(12) 5.50% 8/1/2020 AAA 1,500 1,642,365
Richmond Cnty GA Pub Fac
Cnty Brd Ed Pj(2) 6.00% 11/1/2024 Aaa 500 567,450
--------------
TOTAL 3,490,728
--------------
MISCELLANEOUS 9.28%
Association Cnty GA Leasing
Pj Rockdale Cnty GA Pub Purp Pj(2) 5.625% 7/1/2020 AAA 25 27,438
Cobb Marietta GA Coliseum &
Exhibit Hall Auth Rev(12) 5.625% 10/1/2026 AAA 1,000 1,136,910
Fayette Cnty GA Pub Fac Auth
Rev Criminal Justice Center Pj 5.00% 6/1/2026 AA 750 764,310
George L Smith II GA World
Congress Ctr Auth Rev AMT(12) 5.75% 7/1/2015 AAA 500 556,945
Puerto Rico Pub Bldg Auth Rev
Gtd Govt Fac Ser D 5.375% 7/1/2033 A- 1,300 1,347,320
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Puerto Rico Pub Bldg Auth Rev
Gtd Govt Fa c Ser D 5.25% 7/1/2036 A- $ 1,250 $ 1,279,313
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.70% 8/1/2025 BBB+ 2,000 2,111,920
--------------
TOTAL 7,224,156
--------------
POWER 3.67%
Municipal Elec Auth GA
Combustion Turbine Pj Ser A(12) 5.25% 11/1/2022 AAA 1,445 1,535,457
Puerto Rico Elec Pwr Auth Ref Ser FF(12) 5.25% 7/1/2005 AAA 250 271,073
Puerto Rico Elec Pwr Auth Ser HH(9) 5.25% 7/1/2029 AAA 1,000 1,049,710
--------------
TOTAL 2,856,240
--------------
PRE-REFUNDED 13.30%
Chatham Cnty GA Sch Dist(12) 6.75% 8/1/2020 AAA 1,035 1,074,858
Cobb Cnty GA Kennestone Hosp
Auth Rev Ctfs Ser 86 A ETM(12) Zero Coupon 8/1/2015 AAA 395 199,593
Fayette Cnty GA Pub Fac Auth
Criminal Justice Center Pj 6.00% 6/1/2030 AA 1,000 1,189,380
Forsyth Cnty GA Wtr & Sew Auth Rev 6.25% 4/1/2021 AA 750 900,960
Municipal Secs Trust Ctfs
Ser 7005 Cl B RIBs ETM 9.527% 10/1/2040 Aaa 1,000 1,154,920
Puerto Rico Comwlth Pub Impt(12) 5.75% 7/1/2026 AAA 1,990 2,336,777
Puerto Rico Comwlth Pub Impt(9)(16) 5.50% 7/1/2017 AAA 500 568,350
Puerto Rico Comwlth Pub Impt RIBs 10.239% 7/1/2029 A- 1,125 1,367,213
Puerto Rico Elec Pwr Auth
Ser T RIBs(9) 11.29% 7/1/2018 AAA 1,000 1,168,390
Savannah GA Econ Dev Auth Rev
Sub Ser C ETM Zero Coupon 12/1/2021 Aaa 1,000 390,780
--------------
TOTAL 10,351,221
--------------
RESOURCE RECOVERY 0.14%
Cobb Cnty GA Solid Waste Mgmt
Auth Rev AMT 6.40% 1/1/2015 AAA 100 105,846
--------------
TRANSPORTATION 15.43%
Atlanta GA Arpt Fac Rev AMT(12) Zero Coupon 1/1/2010 AAA 1,500 1,059,495
Atlanta GA Arpt Fac Rev Ser A(6) 5.60% 1/1/2030 AAA 1,500 1,589,895
Macon Bibb Cnty GA Indl Auth
Arpt Impt Rev Ref Atlantic AMT(2) 5.00% 4/1/2018 AAA 500 520,575
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
62
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 A $ 2,000 $ 2,102,920
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A 500 527,440
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.521% 1/1/2010 A 1,750 2,047,290
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B(12) 5.875% 7/1/2020 AAA 1,000 1,135,160
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser C 6.00% 7/1/2029 A 250 278,362
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser D 5.75% 7/1/2041 A 1,985 2,153,606
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(9)(16) 10.58% 7/1/2026 Aaa 500 593,410
--------------
TOTAL 12,008,153
--------------
WATER/SEWER 8.01%
Atlanta GA Wtr & Waste Wtr
Rev Ser A-Unrefunded Balance(6) 5.00% 11/1/2029 AAA 1,000 1,016,570
Augusta GA Wtr & Swr Rev(9) 5.00% 10/1/2032 AAA 1,000 1,017,390
Augusta GA Wtr & Swr Rev(9) 5.25% 10/1/2022 AAA 500 533,095
Augusta GA Wtr & Swr Rev(9) 5.25% 10/1/2030 AAA 1,110 1,155,510
Carroll Cnty GA Wtr Auth Wtr &
Swr Rev(2) 5.25% 7/1/2021 Aaa 500 538,130
Elberton GA Combined Util Sys
Rev Ref & Impt(2) 5.50% 1/1/2019 Aaa 550 605,220
Fulton Cnty GA Wtr & Swr Rev(6) 4.75% 1/1/2028 AAA 250 249,982
Henry Cnty GA Wtr & Sew Auth Rev(6) 5.625% 2/1/2030 AAA 1,050 1,116,266
--------------
TOTAL 6,232,163
--------------
TOTAL MUNICIPAL BONDS (Cost $71,639,957) $ 74,939,880
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2003
<Table>
MUNICIPAL BONDS 93.61%
EDUCATION 8.80%
Eastern MI Univ Rev Gen Ser B(6) 5.60% 6/1/2025 AAA 1,430 1,525,295
Forest Hills MI Pub Sch(6) 5.25% 5/1/2020 Aaa 900 957,312
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
63
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Grand Valley MI St Univ Rev(6) 5.50% 2/1/2018 AAA $ 1,150 $ 1,319,188
University MI Univ Rev
Student Fee Ser A 6.00% 4/1/2007 Aaa 250 286,035
Wayne Cnty MI Cmnty College Impt(2) 5.50% 7/1/2019 AAA 565 608,008
Western MI Univ Rev Ref Gen(2) 5.00% 7/15/2021 AAA 1,000 1,030,000
--------------
TOTAL 5,725,838
--------------
GENERAL OBLIGATION 30.98%
Belding MI Area Sch(2) 5.00% 5/1/2026 AAA 400 409,704
Bloomingdale MI Pub Sch Dist #16 5.50% 5/1/2021 AAA 450 481,122
Caledonia MI Cmnty Sch Ref(9)(16) 5.25% 5/1/2022 AAA 1,025 1,084,993
Carman-Ainsworth Cmnty Sch(6) 5.00% 5/1/2027 AAA 1,000 1,020,440
Central Montcalm MI Pub Sch(12) 5.90% 5/1/2019 AAA 1,000 1,121,040
Crawford Ausable MI Sch Dist
Sch Bldg & Site 5.00% 5/1/2021 AAA 350 360,297
Detroit MI City Sch Dist
Bldg & Site Impt Ser A(6) 5.25% 5/1/2028 AAA 1,000 1,041,260
Elkton Pigeon Bay Port MI Sch Dist 5.375% 5/1/2025 AAA 700 731,143
Huron MI Sch Dist(9) 5.25% 5/1/2021 AAA 250 264,305
Kalamazoo MI City Sch Dist
Bldg & Site(9) 5.00% 5/1/2021 AAA 1,000 1,033,510
Kaleva Norman Etc MI Sch Dist
Bldg & Site(6) 6.00% 5/1/2025 Aaa 600 704,772
Laingsburg MI Cmnty Sch Dist
Sch Bldg & Site Bd 5.25% 5/1/2026 AAA 450 465,237
Lake Orion MI Cmnty Sch Dist Ref 5.125% 5/1/2022 AAA 550 569,145
Memphis MI Cmnty Sch(6) 5.25% 5/1/2029 Aaa 150 154,712
Paw Paw MI Pub Sch Dist
Sch Bldg & Site 6.00% 5/1/2030 AAA 1,325 1,474,818
Puerto Rico Comwlth Pub Impt 2.50% 7/30/2003 MIG1 1,000 1,004,910
Puerto Rico Comwlth Pub Impt
Ref Ser A(13) 5.50% 7/1/2017 AAA 500 577,270
Romulus MI Cmnty Sch Ref 5.00% 5/1/2029 AAA 1,000 1,009,890
Saline MI Area Sch(6) 5.50% 5/1/2015 AAA 750 811,950
South Lyon MI Cmnty Sch(9) 5.50% 5/1/2023 AAA 1,425 1,512,281
South Lyon MI Cmnty Sch
Bldg and Site(6) 5.25% 5/1/2022 AAA 1,000 1,057,800
Southfield MI Pub Sch Bldg &
Site-Ser A(6) 5.25% 5/1/2021 AAA 1,025 1,085,844
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
64
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Wayne Charter Cnty MI Arpt
Hotel-Detroit Met Arpt-A(12) 5.50% 12/1/2018 AAA $ 1,500 $ 1,646,145
Wayne Cnty MI Bldg Auth Cap
Impt Ser A(12) 5.25% 6/1/2016 AAA 500 545,950
--------------
TOTAL 20,168,538
--------------
HEALTHCARE 5.88%
Kalamazoo MI Hosp Fin Auth
Fac Rev Hosp Rev RIBs ETM(6) 9.158% 6/1/2011 AAA 2,000 2,201,480
Michigan St Hosp Fin Auth Rev
Ref Trinity Hlth Ser A(2)(14) 6.00% 12/1/2027 AAA 1,000 1,114,340
Royal Oak MI Hosp Fin Auth
Rev Will Beaumont Hosp Ser M(12) 5.25% 11/15/2035 AAA 500 512,860
--------------
TOTAL 3,828,680
--------------
HOUSING 1.31%
Michigan St Hsg Dev Auth Ser D 5.95% 12/1/2016 AA+ 500 528,155
Michigan St Hsg Dev Auth Ser E AMT 6.20% 12/1/2027 AA+ 310 321,932
--------------
TOTAL 850,087
--------------
LEASE 5.14%
Grand Rapids MI Pub Sch(12) 5.00% 11/1/2021 AAA 250 259,630
Michigan St Ctfs Partn(2) Zero Coupon 6/1/2022 AAA 2,000 796,960
Michigan St Hse
Representative Ctfs Partn(2) Zero Coupon 8/15/2024 AAA 3,565 1,210,424
Puerto Rico Comwlth Ser A 5.50% 10/1/2040 AAA 1,000 1,077,460
--------------
TOTAL 3,344,474
--------------
MISCELLANEOUS 0.50%
Michigan Muni Bd Auth Rev(2) 6.75% 11/1/2014 AAA 295 323,742
--------------
POWER 3.21%
Lowell MI Elec Supply Sys Rev(12) 5.00% 8/1/2027 AAA 1,000 1,017,090
MI St Strategic Fd Ltd Oblig(2) 7.00% 5/1/2021 AAA 500 649,835
MI St Strategic Fd Ltd Oblig
Rev Detroit Fd Ser BB(12) 7.00% 7/15/2008 AAA 350 422,664
--------------
TOTAL 2,089,589
--------------
PRE-REFUNDED 24.41%
Alpena MI Pub Sch(12) 5.625% 5/1/2022 AAA 300 340,362
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
65
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Alpena MI Pub Sch(12) 5.625% 5/1/2022 AAA $ 200 $ 226,908
Anchor Bay MI Sch Dist Bldg &
Site Ser I(6) 6.00% 5/1/2023 AAA 1,100 1,292,082
Eastern MI Univ Rev(6) 5.50% 6/1/2027 AAA 500 571,660
Greenville MI Pub Sch Ref(9) 6.00% 5/1/2025 AAA 1,000 1,174,620
Hartland MI Cons Sch Dist(6) 6.00% 5/1/2021 AAA 1,950 2,300,064
Howell MI Pub Sch(12) 6.00% 5/1/2025 AAA 1,100 1,264,010
Huron Valley MI Sch Dist(6) 5.75% 5/1/2022 AAA 250 284,848
Lake Orion MI Cmnty Sch Dist(2) 7.00% 5/1/2020 AAA 1,050 1,180,410
Lake Orion MI Cmnty Sch Dist Ser A(6) 6.00% 5/1/2017 AAA 1,335 1,574,659
Lakeview MI Cmnty Sch(6) 5.60% 5/1/2022 AAA 210 238,050
Michigan Muni Bd Auth Rev Ser G(2) 6.75% 11/1/2014 AAA 1,205 1,334,465
Potterville MI Pub Sch(9) 6.00% 5/1/2029 AAA 1,000 1,174,620
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.50% 7/1/2027 A 1,000 1,227,040
Puerto Rico Comwlth Pub Impt RIBs 10.239% 7/1/2029 A- 925 1,124,152
Puerto Rico Elec Pwr Auth Ser T RIBs(9) 11.29% 7/1/2018 AAA 500 584,195
--------------
TOTAL 15,892,145
--------------
TRANSPORTATION 4.75%
Kent Cnty MI Arpt Fac Rev Ref
Kent Cnty Intl Arpt 5.00% 1/1/2020 AAA 700 713,237
Michigan St Comprehensive Ser B(9) 5.25% 5/15/2020 AAA 1,000 1,067,870
Michigan St Comprehensive
Transn Ref Ser A(9) 5.00% 11/1/2021 AAA 700 724,654
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.521% 1/1/2010 A 500 584,940
--------------
TOTAL 3,090,701
--------------
WATER/SEWER 8.63%
Detroit MI Disp Rev Ref Ser B(12) 5.25% 7/1/2021 AAA 805 854,419
Detroit MI Wtr Supply Sys SR
Lien-Ser A(12) 5.00% 7/1/2034 AAA 1,000 1,009,510
Grand Rapids MI San Swr Sys
Rev Ref & Impt Ser A(6) 4.75% 1/1/2028 AAA 1,050 1,042,366
Michigan Muni Bd Auth Rev
Drinking Wtr St Revolving FD 5.00% 10/1/2024 AAA 1,000 1,023,530
Muskegon Heights MI Wtr Sys Ser A(12) 5.625% 11/1/2020 Aaa 300 327,084
Muskegon Heights MI Wtr Sys Ser A(12) 5.625% 11/1/2025 Aaa 320 343,949
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
66
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Ypsilanti MI Wtr Supply & Sew
Disp Sys Rev Ser C(2) 5.00% 9/1/2027 AAA $ 1,000 $ 1,017,230
--------------
TOTAL 5,618,088
--------------
TOTAL MUNICIPAL BONDS (Cost $56,170,080) $ 60,931,882
========================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2003
<Table>
MUNICIPAL BONDS 98.35%
EDUCATION 16.12%
Lehigh Cnty PA Gen Purp Auth
Rev Desales University Pj(3) 5.125% 12/15/2023 AA 1,000 1,021,780
Lycoming Cnty PA Auth College
Rev College of Technology(2) 5.25% 5/1/2032 Aaa 700 730,261
PA St Higher Ed Fac Auth Rev
Auth Bryn Mawr College(2) 5.125% 12/1/2029 AAA 150 153,567
PA St Higher Ed Fac Drexel Univ 5.20% 5/1/2032 A 600 605,832
PA St Higher Ed Fac
Lafayette College Pj 6.00% 5/1/2030 AA- 1,425 1,586,125
PA St Higher Ed Fac
Saint Josephs Univ(3) 5.125% 12/15/2022 AA 1,000 1,019,430
PA St Higher Ed Fac
Univ of Scranton(2) 5.75% 11/1/2017 AAA 1,000 1,129,320
PA St Higher Ed Fac
Univ Sciences Phil(12) 5.25% 11/1/2025 AAA 1,000 1,041,600
Pennsylania St Pub Sch Bldg A
Lehigh(6) 5.25% 10/1/2032 Aaa 775 806,798
Pennsylvania St Higher Ed Fac
Auth Drexel Univ 6.00% 5/1/2029 A 800 860,520
Pennsylvania St Higher Ed Fac
Auth Moravian College Pj(3) 5.375% 7/1/2031 AA 1,000 1,031,140
Pennsylvania St Higher Ed Fac
Auth Univ of the Arts(3) 5.625% 3/15/2025 AA 1,000 1,047,640
Pennsylvania St Higher Ed Fac
Auth Univ of the Arts(3) 5.75% 3/15/2030 AA 500 531,720
Philadelphia PA Auth Ind Dev
Rev Ed Cmnty Foreign Med Grads(12) 5.00% 6/1/2015 AAA 250 263,567
State Pub Sch Bldg Auth PA
College Rev(2) Zero Coupon 7/15/2014 AAA 295 183,343
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
67
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
State Pub Sch Bldg Auth PA
College Rev(2) Zero Coupon 7/15/2016 AAA $ 295 $ 164,406
State Pub Sch Bldg Auth PA
College Rev(2) Zero Coupon 7/15/2015 AAA 295 174,091
State Pub Sch Bldg Auth PA
Daniel Boone Sch Dist B(12) 5.00% 4/1/2028 AAA 1,000 1,019,710
State Pub Sch Bldg Auth PA
Northhampton Area Cmnty Coll(2) 5.75% 3/1/2020 AAA 1,775 1,979,693
State Pub Sch Bldg Auth PA
Rev Del Cnty Cmnty College Pj(12) 5.50% 10/1/2020 AAA 800 862,544
--------------
TOTAL 16,213,087
--------------
GENERAL OBLIGATION 20.88%
Delaware Valley PA Regl Fin
Auth Loc Govt Rev Ser C(2) 7.75% 7/1/2027 AAA 1,000 1,434,680
Mifflin Cnty PA(6) 5.625% 9/1/2031 AAA 2,500 2,682,375
Montgomery Cnty PA 5.00% 9/15/2022 Aaa 625 644,975
Pennsbury PA Sch Dist(6) 5.50% 1/15/2020 Aaa 1,000 1,090,990
Philadelphia PA Sch Dist Ser A(9) 5.75% 2/1/2020 AAA 250 277,897
Philadelphia PA Sch Dist Ser A(9) 5.75% 2/1/2030 AAA 1,250 1,367,562
Philadelphia PA Sch Dist Ser A(9) 5.50% 2/1/2031 AAA 500 531,940
Philadelphia PA Sch Dist Ser A(9) 5.75% 2/1/2019 AAA 450 505,021
Philadelphia PA Sch Dist Ser A(9) 5.75% 2/1/2021 AAA 500 550,515
Philadelphia PA Sch Dist Ser B(6) 5.625% 8/1/2022 AAA 1,000 1,092,830
Philadelphia PA Sch Dist Ser B(6) 5.625% 8/1/2021 AAA 1,000 1,088,040
Plum Boro PA Sch Dist(6) 5.25% 9/15/2030 AAA 1,000 1,040,800
Puerto Rico Comwlth Pub Impt Ser A(6) 5.00% 7/1/2032 AAA 750 771,765
Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 2,750 2,843,170
Radnor Twp PA Sch Dist 5.75% 3/15/2026 Aa3 1,200 1,299,696
Riverside PA Sch Dist(6) 5.50% 10/15/2020 AAA 1,000 1,078,510
Tredyffrin-Easttown PA Sch Dist 5.50% 2/15/2017 Aaa 1,000 1,098,860
Wilson PA Area Sch Dist(6) 4.00% 3/15/2012 Aaa 1,550 1,592,269
--------------
TOTAL 20,991,895
--------------
HEALTHCARE 8.81%
Allegheny Cnty PA Hosp Dev
Catholic Health East Issue 5.50% 11/15/2032 A 2,000 2,004,300
Chester Cnty PA Hlth & Ed Fac
Auth Hlth Sys Rev RIBs(2) 9.80% 5/15/2020 AAA 2,600 2,842,372
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
68
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Chester Cnty PA Hlth & Ed Fac
Auth Rev The Devereux Fndtn(3) 5.00% 11/1/2027 AA $ 500 $ 493,710
Chester Cnty PA Hlth & Ed Fac
Auth Rev The Devereux Fndtn(3) 5.00% 11/1/2022 AA 500 508,355
Delaware Cnty PA Auth Hosp
Rev Crozer Chester Med Ctr(1)(15) 5.375% 12/1/2018 A 1,000 1,029,320
Puerto Rico Ind Tourist Ed
Med Mutuo Oblig Grp Ser A(12) 6.25% 7/1/2024 AAA 850 923,848
York Cnty PA Hosp Auth Rev
York Hosp(2) 5.25% 7/1/2017 AAA 1,000 1,061,980
--------------
TOTAL 8,863,885
--------------
HOUSING 1.15%
Pennsylvania Hsg Fin Agy Sing
Fam Mtg Ser 41-B AMT 6.65% 4/1/2025 AA+ 525 542,052
Pennsylvania Hsg Fin Agy Sing
Fam Mtg Ser 42 AMT 6.85% 4/1/2025 AA+ 590 612,155
--------------
TOTAL 1,154,207
--------------
INDUSTRIAL 5.96%
Allegheny Cnty PA Ind Dev
Auth Gtd Ser A Cnty Office Bldg(12) 5.00% 11/1/2022 AAA 1,000 1,032,230
Allegheny Cnty PA Ind Dev
Auth Rev Envr Impt USX Pj 6.10% 7/15/2020 BBB+ 1,000 1,021,840
Bradford Cnty PA Ind Dev Auth
Intl Paper Co Pj Ser A AMT 6.60% 3/1/2019 BBB 1,250 1,306,838
Philadelphia PA Auth For Ind
Dev Lease Rev Ser B(9) 5.125% 10/1/2026 AAA 1,000 1,030,700
York Cnty PA Ind Dev Auth
Poll Ctrl Rev Svc Elec & Gas Ser A(12) 6.45% 10/1/2019 AAA 1,475 1,606,275
--------------
TOTAL 5,997,883
--------------
LEASE 1.81%
West Middlesex Area Sch Dist
PA Cap Apprec Ser A(9) Zero Coupon 6/15/2032 AAA 935 201,829
York PA Gen Auth Gtd Rev York
City Recreation Corp(2) 5.50% 5/1/2018 AAA 1,475 1,614,668
--------------
TOTAL 1,816,497
--------------
MISCELLANEOUS 5.23%
Allegheny Cnty PA Redev Auth
Tax Inc Rev Wtrfrt Pj Ser A 6.30% 12/15/2018 A-(b) 1,000 1,104,500
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
69
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Montgomery Cnty PA Ind Dev
Auth Rev Hill Sch Pj(12) 5.35% 8/15/2027 Aaa $ 2,250 $ 2,339,393
Washington Cnty PA Auth Rev
Cap Fdg Rev Pj & Equip Prog(2) 6.15% 12/1/2029 AAA 1,525 1,812,005
--------------
TOTAL 5,255,898
--------------
POWER 1.12%
Puerto Rico Elec Pwr Auth Rev Ser X 6.00% 7/1/2015 Aaa 1,000 1,123,270
--------------
PRE-REFUNDED 16.13%
Allegheny Cnty PA Port Auth
Sp Rev Transn(12) 6.125% 3/1/2029 AAA 500 592,715
Allegheny Cnty PA Port Auth
Sp Rev Transn(12) 6.00% 3/1/2013 AAA 2,000 2,357,360
Bethlehem PA Area Sch Dist(12) 6.00% 3/1/2016 AAA 1,000 1,121,310
Childrens TR FD PR TOB 6.00% 7/1/2026 AAA 750 887,445
Pennsylvania Conv Ctr Auth
Rev Ser A ETM(6) 6.70% 9/1/2016 AAA 855 1,069,605
Pennsylvania Intergovt Coop
Auth Spl Tax Rev Funding Prog(6) 6.75% 6/15/2021 AAA 2,000 2,231,420
Philadelphia PA Gas Wks Rev
Twelfth Ser B ETM(12) 7.00% 5/15/2020 AAA 2,220 2,832,276
Puerto Rico Comwlth 6.45% 7/1/2017 AAA 1,900 2,054,109
Puerto Rico Comwlth(12)(18) 6.45% 7/1/2017 AAA 700 756,777
Puerto Rico Elec Pwr Auth Rev Ser X 6.125% 7/1/2021 Aaa 500 563,015
Puerto Rico Elec Pwr Auth Ser T RIBs(9) 11.29% 7/1/2018 AAA 1,500 1,752,585
--------------
TOTAL 16,218,617
--------------
TRANSPORTATION 16.73%
Allegheny Cnty PA Arpt Rev(12) 5.00% 1/1/2017 AAA 1,000 1,031,630
Delaware River Port Auth PA &
NJ Ref Port Dist Pj Ser A(9) 5.20% 1/1/2027 AAA 1,000 1,044,190
Delaware River Port Auth PA &
NJ Rev(9) 6.00% 1/1/2019 AAA 1,000 1,132,280
Pennsylvania St Tpk Commn(2) 5.00% 7/15/2031 AAA 300 305,535
Pennsylvania St Tpk Commn(2) 5.50% 7/15/2033 AAA 3,000 3,202,470
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 A 1,000 1,051,460
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A 2,000 2,109,760
Puerto Rico Comwlth Hwy &
Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 500 539,700
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
70
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2003
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ------------------------------------------------------------------------------------------------------------------------
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.521% 1/1/2010 A $ 2,750 $ 3,217,170
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser D 5.75% 7/1/2041 A 2,000 2,169,880
Puerto Rico Port Auth Rev Ser D AMT(6) 7.00% 7/1/2014 AAA 1,000 1,013,710
--------------
TOTAL 16,817,785
--------------
WATER/SEWER 4.41%
Allegheny Cnty PA San Auth
Swr Rev(12) 5.375% 12/1/2024 AAA 2,000 2,086,760
Bucks Cnty PA Wtr & Swr Auth
Neshaminy Interceptor Swr Sys(2) 5.50% 6/1/2017 Aaa 465 513,137
Bucks Cnty PA Wtr & Swr Auth
Rev Ser A(2) 5.00% 6/1/2024 AAA 1,000 1,022,810
North Huntingdon Township PA(2) 5.25% 4/1/2019 AAA 760 808,936
--------------
TOTAL 4,431,643
--------------
TOTAL MUNICIPAL BONDS (Cost $92,750,615) $ 98,884,667
========================================================================================================================
</Table>
(a) Unaudited
(b) This investment has not been rated by an independent ratings service but
is, in Lord Abbett's opinion, of comparable quality to the rating shown.
(c) This investment has been rated by Fitch IBCA.
(d) Securities purchased on a when-issued basis.
** Deferred-interest municipals pay no interest for a stipulated number of
years, after which they pay a predetermined interest rate.
AMT-Income from the security may be subject to Alternative Minimum Tax.
ETM-Escrow to Maturity
GTD-Guaranteed
Prerefunded Bonds-A second bond has been issued in order to pay off the first
bond issue. Proceeds from the sale of the second bond are held in an
"escrow fund" consisting of U.S. Government debt until the first bond issue
reaches maturity.
PSF-Permanent School Fund
RIBs-Residual Interest Bond. The interest rate is subject to change
periodically and inversely to the prevailing market rate.
The interest rate shown is the rate in effect at March 31, 2003. Insured or
guaranteed by the indicated municipal bond insurance corporation or Federal
agency:
(1) American Capital Asset
(2) American Municipal Bond Assurance Corporation
(3) Radian Asset Assurance
(4) Bond Investors Guaranty
(5) College Construction Loan Insurance Association
(6) Financial Guaranty Insurance Company
(7) Federal Housing Administration
(8) Federal National Mortgage Association
(9) Financial Security Assurance, Inc.
(10) Government National Mortgage Association
(11) Government National Mortgage Association/Federal National Mortgage
Association
(12) Municipal Bond Investors Assurance
(13) XL Capital Assurance Inc.
(14) Temporary Custodian Receipts
(15) Certificate Bond Insurance
(16) Custodian Receipt
(17) Federal Home Loan Mortgage Corporation
(18) Insurance Bond Certificate
SEE NOTES TO FINANCIAL STATEMENTS.
71
<Page>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
March 31, 2003
<Table>
<Caption>
NATIONAL CALIFORNIA
ASSETS:
Investment in securities, at cost $ 589,860,777 $ 193,037,052
- ------------------------------------------------------------------------------------------
Investment in securities, at value $ 621,562,549 $ 203,711,581
Cash 254,759 241,802
Receivables:
Interest and dividends 8,098,259 2,673,563
Investment securities sold 16,362,590 3,655,091
Capital shares sold 843,429 304,326
Prepaid expenses and other assets 57,037 23,259
- ------------------------------------------------------------------------------------------
TOTAL ASSETS 647,178,623 210,609,622
- ------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 33,555,899 6,591,073
Capital shares reacquired 391,267 220,398
Management fees 260,239 85,402
12b-1 distribution fees 377,306 98,689
Administration fees 20,066 6,612
Directors'/Trustees' fees 288,823 171,174
Dividends payable 1,918,325 700,352
Accrued expenses and other liabilities 162,395 60,150
- ------------------------------------------------------------------------------------------
TOTAL LIABILITIES 36,974,320 7,933,850
==========================================================================================
NET ASSETS $ 610,204,303 $ 202,675,772
==========================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 595,285,131 $ 202,422,501
Distributions in excess of net investment income (2,236,111) (64,921)
Accumulated net realized loss on investments (14,546,489) (10,356,337)
Net unrealized appreciation on investments 31,701,772 10,674,529
- ------------------------------------------------------------------------------------------
NET ASSETS $ 610,204,303 $ 202,675,772
==========================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 524,667,608 $ 187,199,100
Class B Shares $ 39,220,757 -
Class C Shares $ 46,315,938 $ 15,476,672
OUTSTANDING SHARES BY CLASS:
Class A Shares 45,538,211 17,169,434
Class B Shares 3,396,255 -
Class C Shares 4,013,331 1,418,548
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 11.52 $ 10.90
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 11.91 $ 11.27
Class B Shares-Net asset value $ 11.55 -
Class C Shares-Net asset value $ 11.54 $ 10.91
==========================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
72
<Page>
<Table>
<Caption>
CONNECTICUT HAWAII MINNESOTA
ASSETS:
Investment in securities, at cost $ 93,262,205 $ 66,583,746 $ 25,712,223
- ------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 98,649,500 $ 71,590,751 $ 27,162,583
Cash 403,247 3,717,824 3,420,151
Receivables:
Interest and dividends 1,443,778 1,164,471 363,846
Investment securities sold 1,030,970 - 89,000
Capital shares sold 71,125 13,059 110,888
Prepaid expenses and other assets 6,373 60,843 2,029
- ------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 101,604,993 76,546,948 31,148,497
- ------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 1,000,000 - -
Capital shares reacquired 153,078 438 1,400
Management fees 42,506 33,080 12,957
12b-1 distribution fees 48,336 59,506 -
Administration fees 3,286 2,518 1,032
Directors'/Trustees' fees 24,952 18,346 1,404
Dividends payable 340,008 242,185 94,182
Accrued expenses and other liabilities 37,565 20,773 10,064
- ------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,649,731 376,846 121,039
============================================================================================================
NET ASSETS $ 99,955,262 $ 76,170,102 $ 31,027,458
============================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 96,823,847 $ 75,035,095 $ 30,242,051
Distributions in excess of net investment income (161,510) (213,060) (76,595)
Accumulated net realized loss on investments (2,094,370) (3,658,938) (588,358)
Net unrealized appreciation on investments 5,387,295 5,007,005 1,450,360
- ------------------------------------------------------------------------------------------------------------
NET ASSETS $ 99,955,262 $ 76,170,102 $ 31,027,458
============================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 99,955,262 $ 76,170,102 $ 31,027,458
Class B Shares - - -
Class C Shares - - -
OUTSTANDING SHARES BY CLASS:
Class A Shares 9,472,111 15,013,112 6,033,251
Class B Shares - - -
Class C Shares - - -
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 10.55 $ 5.07 $ 5.14
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 10.90 $ 5.24 $ 5.31
Class B Shares-Net asset value - - -
Class C Shares-Net asset value - - -
============================================================================================================
<Caption>
MISSOURI NEW JERSEY
ASSETS:
Investment in securities, at cost $ 137,695,184 $ 148,457,949
- ------------------------------------------------------------------------------------------
Investment in securities, at value $ 145,258,906 $ 157,537,088
Cash 5,072,338 172,504
Receivables:
Interest and dividends 2,162,919 2,284,961
Investment securities sold 979,594 1,828,131
Capital shares sold 53,870 271,646
Prepaid expenses and other assets 24,358 49,983
- ------------------------------------------------------------------------------------------
TOTAL ASSETS 153,551,985 162,144,313
- ------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 4,118,359 2,061,109
Capital shares reacquired 158,741 329,156
Management fees 62,517 67,933
12b-1 distribution fees 62,003 99,244
Administration fees 4,915 5,212
Directors'/Trustees' fees 28,482 42,159
Dividends payable 449,151 532,741
Accrued expenses and other liabilities 36,178 44,923
- ------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,920,346 3,182,477
==========================================================================================
NET ASSETS $ 148,631,639 $ 158,961,836
==========================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 141,980,461 $ 154,263,999
Distributions in excess of net investment income (204,799) (375,631)
Accumulated net realized loss on investments (707,745) (4,005,671)
Net unrealized appreciation on investments 7,563,722 9,079,139
- ------------------------------------------------------------------------------------------
NET ASSETS $ 148,631,639 $ 158,961,836
==========================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 148,631,639 $ 158,961,836
Class B Shares - -
Class C Shares - -
OUTSTANDING SHARES BY CLASS:
Class A Shares 27,791,730 30,261,531
Class B Shares - -
Class C Shares - -
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 5.35 $ 5.25
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 5.53 $ 5.43
Class B Shares-Net asset value - -
Class C Shares-Net asset value - -
==========================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
73
<Page>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
March 31, 2003
<Table>
<Caption>
NEW YORK TEXAS
ASSETS:
Investment in securities, at cost $ 233,714,533 $ 73,394,164
- ------------------------------------------------------------------------------------------
Investment in securities, at value $ 251,154,181 $ 80,240,062
Cash 332,874 385,021
Receivables:
Interest and dividends 3,556,946 1,289,683
Investment securities sold 2,653,808 854,242
Capital shares sold 144,032 100,217
Prepaid expenses and other assets 27,234 17,600
- ------------------------------------------------------------------------------------------
TOTAL ASSETS 257,869,075 82,886,825
- ------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 3,000,000 1,874,537
Capital shares reacquired 213,987 24,000
Management fees 107,506 34,267
12b-1 distribution fees 176,347 71,151
Administration fees 8,389 2,629
Directors'/Trustees' fees 143,038 31,126
Dividends payable 877,525 263,429
Accrued expenses and other liabilities 68,135 21,206
- ------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,594,927 2,322,345
==========================================================================================
NET ASSETS $ 253,274,148 $ 80,564,480
==========================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 246,412,765 $ 77,147,189
Undistributed (distributions in excess of) net
investment income (830,057) (211,558)
Accumulated net realized loss on investments (9,748,208) (3,217,049)
Net unrealized appreciation on investments 17,439,648 6,845,898
- ------------------------------------------------------------------------------------------
NET ASSETS $ 253,274,148 $ 80,564,480
==========================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 243,447,129 $ 80,564,480
Class C Shares $ 9,827,019 -
OUTSTANDING SHARES BY CLASS:
Class A Shares 21,313,908 7,813,573
Class C Shares 860,195 -
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 11.42 $ 10.31
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 11.80 $ 10.66
Class C Shares-Net asset value $ 11.42 -
==========================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
74
<Page>
<Table>
<Caption>
WASHINGTON FLORIDA GEORGIA
ASSETS:
Investment in securities, at cost $ 45,945,811 $ 79,397,804 $ 71,639,957
- ------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 49,258,298 $ 87,057,655 $ 74,939,880
Cash 181,592 250,277 3,048,669
Receivables:
Interest and dividends 788,090 1,393,102 1,187,071
Investment securities sold 1,000,000 3,996,570 -
Capital shares sold 19,771 329,113 166,064
Prepaid expenses and other assets 981 1,113 1,438
- ------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 51,248,732 93,027,830 79,343,122
- ------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 980,850 4,026,973 1,038,722
Capital shares reacquired 54,047 54,895 182,247
Management fees 21,982 37,816 32,661
12b-1 distribution fees - 63,064 -
Administration fees 1,640 2,904 2,578
Directors'/Trustees' fees 15,822 38,096 1,605
Dividends payable 173,925 281,801 234,297
Accrued expenses and other liabilities 17,890 48,160 26,105
- ------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,266,156 4,553,709 1,518,215
============================================================================================================
NET ASSETS $ 49,982,576 $ 88,474,121 $ 77,824,907
============================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 48,351,632 $ 91,275,325 $ 74,599,629
Undistributed (distributions in excess of) net
investment income 446,471 (161,285) (17,912)
Accumulated net realized loss on investments (2,128,014) (10,299,770) (56,733)
Net unrealized appreciation on investments 3,312,487 7,659,851 3,299,923
- ------------------------------------------------------------------------------------------------------------
NET ASSETS $ 49,982,576 $ 88,474,121 $ 77,824,907
============================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 49,982,576 $ 82,601,974 $ 77,824,907
Class C Shares - $ 5,872,147 -
OUTSTANDING SHARES BY CLASS:
Class A Shares 9,563,134 16,920,716 13,939,543
Class C Shares - 1,200,617 -
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 5.23 $ 4.88 $ 5.58
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 5.41 $ 5.04 $ 5.77
Class C Shares-Net asset value - $ 4.89 -
============================================================================================================
<Caption>
MICHIGAN PENNSYLVANIA
ASSETS:
Investment in securities, at cost $ 56,170,080 $ 92,750,615
- ------------------------------------------------------------------------------------------
Investment in securities, at value $ 60,931,882 $ 98,884,667
Cash 3,379,654 876,593
Receivables:
Interest and dividends 1,045,009 1,435,633
Investment securities sold 3,192,397 45,000
Capital shares sold 268,367 41,427
Prepaid expenses and other assets 331 3,605
- ------------------------------------------------------------------------------------------
TOTAL ASSETS 68,817,640 101,286,925
- ------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 3,271,695 -
Capital shares reacquired 170,671 175,442
Management fees 27,645 42,749
12b-1 distribution fees - 130,668
Administration fees 2,149 3,288
Directors'/Trustees' fees 9,291 19,500
Dividends payable 208,434 324,543
Accrued expenses and other liabilities 33,260 47,332
- ------------------------------------------------------------------------------------------
TOTAL LIABILITIES 3,723,145 743,522
==========================================================================================
NET ASSETS $ 65,094,495 $ 100,543,403
==========================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 62,305,362 $ 95,966,577
Undistributed (distributions in excess of) net
investment income (262,305) (411,344)
Accumulated net realized loss on investments (1,710,364) (1,145,882)
Net unrealized appreciation on investments 4,761,802 6,134,052
- ------------------------------------------------------------------------------------------
NET ASSETS $ 65,094,495 $ 100,543,403
==========================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 65,094,495 $ 100,543,403
Class C Shares - -
OUTSTANDING SHARES BY CLASS:
Class A Shares 12,180,687 19,116,091
Class C Shares - -
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHAR
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 5.34 $ 5.26
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 5.52 $ 5.44
Class C Shares-Net asset value - -
==========================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
75
<Page>
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended March 31, 2003
<Table>
<Caption>
NATIONAL CALIFORNIA
INVESTMENT INCOME:
Interest $ 16,394,170 $ 5,282,553
Dividends 71,728 14,483
- ------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 16,465,898 5,297,036
- ------------------------------------------------------------------------------------------
EXPENSES:
Management fees 1,503,494 499,811
12b-1 distribution plan-Class A 954,621 326,853
12b-1 distribution plan-Class B 187,488 -
12b-1 distribution plan-Class C 225,600 73,901
Shareholder servicing 176,045 50,362
Professional 50,827 24,002
Reports to shareholders 35,557 11,310
Fund accounting 11,379 9,378
Fund administration 58,597 19,547
Custody 17,437 7,283
Directors'/Trustees' fees 9,828 3,221
Registration 32,623 6,875
Other - 15,529
- ------------------------------------------------------------------------------------------
Gross expenses 3,263,496 1,048,072
Expense reductions (5,783) (2,586)
- ------------------------------------------------------------------------------------------
NET EXPENSES 3,257,713 1,045,486
- ------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 13,208,185 4,251,550
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments (2,363,951) (1,311,787)
Net change in unrealized appreciation/depreciation
on investments (8,245,225) (3,600,774)
==========================================================================================
NET REALIZED AND UNREALIZED LOSS (10,609,176) (4,912,561)
==========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 2,599,009 $ (661,011)
==========================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
76
<Page>
<Table>
<Caption>
CONNECTICUT HAWAII MINNESOTA
INVESTMENT INCOME:
Interest $ 2,679,043 $ 2,000,789 $ 703,268
Dividends 4,719 - -
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 2,683,762 2,000,789 703,268
- ------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 245,615 188,895 71,729
12b-1 distribution plan-Class A 178,824 134,671 -
12b-1 distribution plan-Class B - - -
12b-1 distribution plan-Class C - - -
Shareholder servicing 25,712 19,050 8,992
Professional 12,962 10,139 6,161
Reports to shareholders 5,563 4,242 1,538
Fund accounting 18,282 8,756 8,503
Fund administration 9,579 7,401 2,766
Custody 6,172 3,005 1,432
Directors'/Trustees' fees 1,525 1,105 386
Registration 4,917 1,902 2,704
Other 6,329 2,051 -
- ------------------------------------------------------------------------------------------------------------
Gross expenses 515,480 381,217 104,211
Expense reductions (1,293) (5,926) (4,771)
- ------------------------------------------------------------------------------------------------------------
NET EXPENSES 514,187 375,291 99,440
- ------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 2,169,575 1,625,498 603,828
- ------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments (383,189) (1,507,613) (20,388)
Net change in unrealized appreciation/depreciation
on investments (1,032,976) (451,621) (149,203)
============================================================================================================
NET REALIZED AND UNREALIZED LOSS (1,416,165) (1,959,234) (169,591)
============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 753,410 $ (333,736) $ 434,237
============================================================================================================
<Caption>
MISSOURI NEW JERSEY
INVESTMENT INCOME:
Interest $ 3,817,188 $ 4,490,672
Dividends - 8,324
- ------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 3,817,188 4,498,996
- ------------------------------------------------------------------------------------------
EXPENSES:
Management fees 358,520 401,100
12b-1 distribution plan-Class A 262,849 297,933
12b-1 distribution plan-Class B - -
12b-1 distribution plan-Class C - -
Shareholder servicing 45,937 44,768
Professional 14,424 16,319
Reports to shareholders 8,017 9,287
Fund accounting 9,081 9,177
Fund administration 13,948 15,724
Custody 2,590 5,976
Directors'/Trustees' fees 2,006 2,493
Registration 5,655 3,121
Other 4,854 -
- ------------------------------------------------------------------------------------------
Gross expenses 727,881 805,898
Expense reductions (13,104) (2,181)
- ------------------------------------------------------------------------------------------
NET EXPENSES 714,777 803,717
- ------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,102,411 3,695,279
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments 152,580 (537,292)
Net change in unrealized appreciation/depreciation
on investments (1,965,306) (3,164,717)
==========================================================================================
NET REALIZED AND UNREALIZED LOSS (1,812,726) (3,702,009)
==========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 1,289,685 $ (6,730)
==========================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
77
<Page>
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
For the Six Months Ended March 31, 2003
<Table>
<Caption>
NEW YORK TEXAS
INVESTMENT INCOME:
Interest $ 7,105,979 $ 2,200,213
Dividends 23,708 13,458
- ------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 7,129,687 2,213,671
- ------------------------------------------------------------------------------------------
EXPENSES:
Management fees 635,345 199,086
12b-1 distribution plan-Class A 422,265 147,362
12b-1 distribution plan-Class C 45,387 -
Shareholder servicing 76,351 22,813
Professional 24,241 9,729
Reports to shareholders 14,443 4,453
Fund accounting 9,658 8,765
Fund administration 24,947 7,773
Custody 5,943 1,832
Directors'/Trustees' fees 3,882 1,221
Registration 5,129 3,860
Other 912 7,163
- ------------------------------------------------------------------------------------------
Gross expenses 1,268,503 414,057
Expense reductions (2,874) (1,382)
- ------------------------------------------------------------------------------------------
NET EXPENSES 1,265,629 412,675
- ------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 5,864,058 1,800,996
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments (126,028) 125,240
Net change in unrealized appreciation/depreciation
on investments (5,144,867) (1,479,715)
==========================================================================================
NET REALIZED AND UNREALIZED LOSS (5,270,895) (1,354,475)
==========================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 593,163 $ 446,521
==========================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
78
<Page>
<Table>
<Caption>
WASHINGTON FLORIDA GEORGIA
INVESTMENT INCOME:
Interest $ 1,324,477 $ 2,365,127 $ 1,838,085
Dividends 8,409 12,981 -
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,332,886 2,378,108 1,838,085
- ------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 121,698 217,951 182,874
12b-1 distribution plan-Class A - 148,815 -
12b-1 distribution plan-Class C - 28,873 -
Shareholder servicing 18,176 28,599 19,405
Professional 7,404 20,089 19,021
Reports to shareholders 2,695 31,187 19,468
Fund accounting 8,608 8,807 7,994
Fund administration 4,734 8,527 7,047
Custody 1,066 5,393 2,981
Directors'/Trustees' fees 712 1,407 688
Registration 5,088 3,476 2,763
Other - 14,767 -
- ------------------------------------------------------------------------------------------------------------
Gross expenses 170,181 517,891 262,241
Expense reductions (1,190) (1,354) (6,127)
- ------------------------------------------------------------------------------------------------------------
NET EXPENSES 168,991 516,537 256,114
- ------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,163,895 1,861,571 1,581,971
- ------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments (174,595) (1,224,519) (56,819)
Net change in unrealized appreciation/depreciation
on investments (680,487) (329,253) (1,220,118)
============================================================================================================
NET REALIZED AND UNREALIZED LOSS (855,082) (1,553,772) (1,276,937)
============================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 308,813 $ 307,799 $ 305,034
============================================================================================================
<Caption>
MICHIGAN PENNSYLVANIA
INVESTMENT INCOME:
Interest $ 1,562,191 $ 2,668,366
Dividends - -
- ------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,562,191 2,668,366
- ------------------------------------------------------------------------------------------
EXPENSES:
Management fees 154,931 249,556
12b-1 distribution plan-Class A - 178,940
12b-1 distribution plan-Class C - -
Shareholder servicing 24,157 34,393
Professional 12,552 20,593
Reports to shareholders 19,102 32,362
Fund accounting 8,659 8,866
Fund administration 5,975 9,751
Custody 5,378 2,563
Directors'/Trustees' fees 759 1,463
Registration 2,339 3,968
Other 8,758 10,772
- ------------------------------------------------------------------------------------------
Gross expenses 242,610 553,227
Expense reductions (11,391) (5,716)
- ------------------------------------------------------------------------------------------
NET EXPENSES 231,219 547,511
- ------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,330,972 2,120,855
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments 67,717 (382,540)
Net change in unrealized appreciation/depreciation
on investments (858,991) (1,645,765)
==========================================================================================
NET REALIZED AND UNREALIZED LOSS (791,274) (2,028,305)
==========================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 539,698 $ 92,550
==========================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
Six Months Ended March 31, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NATIONAL CALIFORNIA
OPERATIONS:
Net investment income $ 13,208,185 $ 4,251,550
Net realized gain (loss) on investments (2,363,951) (1,311,787)
Net change in unrealized appreciation/depreciation
on investments (8,245,225) (3,600,774)
- -----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS 2,599,009 (661,011)
===============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (11,880,885) (4,299,251)
Class B (747,716) -
Class C (906,494) (302,073)
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (13,535,095) (4,601,324)
===============================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 50,634,340 14,251,441
Reinvestment of distributions 8,851,973 2,439,541
Cost of shares reacquired (49,886,277) (15,223,478)
- -----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 9,600,036 1,467,504
===============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (1,336,050) (3,794,831)
===============================================================================================
NET ASSETS
Beginning of period 611,540,353 206,470,603
- -----------------------------------------------------------------------------------------------
END OF PERIOD $ 610,204,303 $ 202,675,772
===============================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (2,236,111) $ (64,921)
===============================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
80
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS CONNECTICUT HAWAII MINNESOTA
OPERATIONS:
Net investment income $ 2,169,575 $ 1,625,498 $ 603,828
Net realized gain (loss) on investments (383,189) (1,507,613) (20,388)
Net change in unrealized appreciation/depreciation
on investments (1,032,976) (451,621) (149,203)
- -----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS 753,410 (333,736) 434,237
=================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (2,235,036) (1,596,134) (639,743)
Class B - - -
Class C - - -
- -----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (2,235,036) (1,596,134) (639,743)
=================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 5,377,989 3,457,548 5,532,936
Reinvestment of distributions 1,073,538 864,742 521,427
Cost of shares reacquired (5,373,075) (6,210,391) (2,389,614)
- -----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 1,078,452 (1,888,101) 3,664,749
=================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (403,174) (3,817,971) 3,459,243
=================================================================================================================
NET ASSETS
Beginning of period 100,358,436 79,988,073 27,568,215
- -----------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 99,955,262 $ 76,170,102 $ 31,027,458
=================================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (161,510) $ (213,060) $ (76,595)
=================================================================================================================
<Caption>
INCREASE (DECREASE) IN NET ASSETS MISSOURI NEW JERSEY
OPERATIONS:
Net investment income $ 3,102,411 $ 3,695,279
Net realized gain (loss) on investments 152,580 (537,292)
Net change in unrealized appreciation/depreciation
on investments (1,965,306) (3,164,717)
- -----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS 1,289,685 (6,730)
===============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (2,918,496) (3,669,269)
Class B - -
Class C - -
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (2,918,496) (3,669,269)
===============================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 10,743,322 8,458,825
Reinvestment of distributions 2,276,025 2,120,053
Cost of shares reacquired (7,764,517) (12,674,434)
- -----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 5,254,830 (2,095,556)
===============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 3,626,019 (5,771,555)
===============================================================================================
NET ASSETS
Beginning of period 145,005,620 164,733,391
- -----------------------------------------------------------------------------------------------
END OF PERIOD $ 148,631,639 $ 158,961,836
===============================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (204,799) $ (375,631)
===============================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
81
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
Six Months Ended March 31, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NEW YORK TEXAS
OPERATIONS:
Net investment income $ 5,864,058 $ 1,800,996
Net realized gain (loss) on investments (126,028) 125,240
Net change in unrealized appreciation/depreciation
on investments (5,144,867) (1,479,715)
- -----------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 593,163 446,521
===============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (5,683,595) (1,727,319)
Class C (186,638) -
Net realized gain
Class A - -
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (5,870,233) (1,727,319)
===============================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 15,824,829 3,546,899
Reinvestment of distributions 3,541,407 1,219,405
Cost of shares reacquired (22,444,367) (4,289,565)
- -----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS (3,078,131) 476,739
===============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (8,355,201) (804,059)
===============================================================================================
NET ASSETS
Beginning of period 261,629,349 81,368,539
- -----------------------------------------------------------------------------------------------
END OF PERIOD $ 253,274,148 $ 80,564,480
===============================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ (830,057) $ (211,558)
===============================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
82
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS WASHINGTON FLORIDA GEORGIA
OPERATIONS:
Net investment income $ 1,163,895 $ 1,861,571 $ 1,581,971
Net realized gain (loss) on investments (174,595) (1,224,519) (56,819)
Net change in unrealized appreciation/depreciation
on investments (680,487) (329,253) (1,220,118)
- -----------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 308,813 307,799 305,034
=================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,203,917) (1,860,405) (1,501,625)
Class C - (113,274) -
Net realized gain
Class A - - (214,585)
- -----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,203,917) (1,973,679) (1,716,210)
=================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 4,214,489 4,837,625 15,334,835
Reinvestment of distributions 829,403 795,440 1,377,871
Cost of shares reacquired (3,214,838) (5,744,946) (7,313,054)
- -----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 1,829,054 (111,881) 9,399,652
=================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 933,950 (1,777,761) 7,988,476
=================================================================================================================
NET ASSETS
Beginning of period 49,048,626 90,251,882 69,836,431
- -----------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 49,982,576 $ 88,474,121 $ 77,824,907
=================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ 446,471 $ (161,285) $ (17,912)
=================================================================================================================
<Caption>
INCREASE (DECREASE) IN NET ASSETS MICHIGAN PENNSYLVANIA
OPERATIONS:
Net investment income $ 1,330,972 $ 2,120,855
Net realized gain (loss) on investments 67,717 (382,540)
Net change in unrealized appreciation/depreciation
on investments (858,991) (1,645,765)
- -----------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 539,698 92,550
===============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,421,522) (2,242,423)
Class C - -
Net realized gain
Class A - -
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,421,522) (2,242,423)
===============================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 10,965,418 5,837,194
Reinvestment of distributions 935,813 1,080,127
Cost of shares reacquired (4,556,613) (5,725,960)
- -----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 7,344,618 1,191,361
===============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 6,462,794 (958,512)
===============================================================================================
NET ASSETS
Beginning of period 58,631,701 101,501,915
- -----------------------------------------------------------------------------------------------
END OF PERIOD $ 65,094,495 $ 100,543,403
===============================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ (262,305) $ (411,344)
===============================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
83
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended September 30, 2002
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NATIONAL CALIFORNIA
OPERATIONS:
Net investment income $ 27,146,448 $ 9,507,076
Net realized gain on investments 3,472,516 245,780
Net change in unrealized appreciation/depreciation
on investments 17,539,926 4,841,134
- -----------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 48,158,890 14,593,990
===============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (24,360,519) (8,729,491)
Class B (1,306,098) -
Class C (1,629,500) (501,001)
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (27,296,117) (9,230,492)
===============================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 112,022,029 25,394,908
Reinvestment of distributions 17,554,600 5,008,377
Cost of shares reacquired (117,659,510) (33,511,579)
- -----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 11,917,119 (3,108,294)
===============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 32,779,892 2,255,204
===============================================================================================
NET ASSETS
Beginning of year 578,760,461 204,215,399
- -----------------------------------------------------------------------------------------------
END OF YEAR $ 611,540,353 $ 206,470,603
===============================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ (1,909,201) $ 284,853
===============================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
84
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS CONNECTICUT HAWAII MINNESOTA
OPERATIONS:
Net investment income $ 4,751,298 $ 3,411,857 $ 1,220,309
Net realized gain on investments 749,305 382,498 30,099
Net change in unrealized appreciation/depreciation
on investments 2,855,223 2,514,391 883,643
- -----------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 8,355,826 6,308,746 2,134,051
=================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (4,666,381) (3,493,168) (1,196,122)
Class B - - -
Class C - - -
- -----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (4,666,381) (3,493,168) (1,196,122)
=================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 8,823,698 12,019,332 4,846,903
Reinvestment of distributions 2,147,736 1,827,196 956,958
Cost of shares reacquired (15,544,316) (7,695,736) (3,881,976)
- -----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS (4,572,882) 6,150,792 1,921,885
=================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (883,437) 8,966,370 2,859,814
=================================================================================================================
NET ASSETS
Beginning of year 101,241,873 71,021,703 24,708,401
- -----------------------------------------------------------------------------------------------------------------
END OF YEAR $ 100,358,436 $ 79,988,073 $ 27,568,215
=================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ (96,049) $ (242,424) $ (40,680)
=================================================================================================================
<Caption>
INCREASE (DECREASE) IN NET ASSETS MISSOURI NEW JERSEY
OPERATIONS:
Net investment income $ 5,963,454 $ 7,597,934
Net realized gain on investments 1,018,147 977,977
Net change in unrealized appreciation/depreciation
on investments 3,322,968 3,901,863
- -----------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 10,304,569 12,477,774
===============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (5,909,705) (7,410,189)
Class B - -
Class C - -
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (5,909,705) (7,410,189)
===============================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 17,602,461 16,690,884
Reinvestment of distributions 4,539,731 4,254,272
Cost of shares reacquired (11,653,711) (21,450,389)
- -----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 10,488,481 (505,233)
===============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 14,883,345 4,562,352
===============================================================================================
NET ASSETS
Beginning of year 130,122,275 160,171,039
- -----------------------------------------------------------------------------------------------
END OF YEAR $ 145,005,620 $ 164,733,391
===============================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ (388,714) $ (401,641)
===============================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
85
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended September 30, 2002
<Table>
<Caption>
INCREASE IN NET ASSETS NEW YORK TEXAS
OPERATIONS:
Net investment income $ 11,836,535 $ 3,481,721
Net realized gain on investments 2,480,435 362,090
Net change in unrealized appreciation/depreciation
on investments 8,324,389 3,392,827
- -----------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 22,641,359 7,236,638
===============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (11,318,011) (3,456,519)
Class C (306,953) -
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (11,624,964) (3,456,519)
===============================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 34,088,342 6,622,967
Reinvestment of distributions 6,992,893 2,413,147
Cost of shares reacquired (39,497,523) (9,308,122)
- -----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 1,583,712 (272,008)
===============================================================================================
NET INCREASE IN NET ASSETS 12,600,107 3,508,111
===============================================================================================
NET ASSETS
Beginning of year 249,029,242 77,860,428
- -----------------------------------------------------------------------------------------------
END OF YEAR $ 261,629,349 $ 81,368,539
===============================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ (823,882) $ (285,235)
===============================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
86
<Page>
<Table>
<Caption>
INCREASE IN NET ASSETS WASHINGTON FLORIDA GEORGIA
OPERATIONS:
Net investment income $ 2,377,355 $ 4,125,652 $ 2,321,307
Net realized gain on investments 175,857 353,938 461,293
Net change in unrealized appreciation/depreciation
on investments 1,398,877 2,398,830 2,505,000
- -----------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,952,089 6,878,420 5,287,600
=================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (2,369,030) (3,898,923) (2,298,082)
Class C - (223,468) -
- -----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (2,369,030) (4,122,391) (2,298,082)
=================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 4,893,708 6,485,650 28,219,929
Reinvestment of distributions 1,554,802 1,552,170 1,872,091
Cost of shares reacquired (4,866,363) (9,570,166) (9,480,146)
- -----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 1,582,147 (1,532,346) 20,611,874
=================================================================================================================
NET INCREASE IN NET ASSETS 3,165,206 1,223,683 23,601,392
=================================================================================================================
NET ASSETS
Beginning of year 45,883,420 89,028,199 46,235,039
- -----------------------------------------------------------------------------------------------------------------
END OF YEAR $ 49,048,626 $ 90,251,882 $ 69,836,431
=================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ 486,493 $ (49,177) $ (98,258)
=================================================================================================================
<Caption>
INCREASE IN NET ASSETS MICHIGAN PENNSYLVANIA
OPERATIONS:
Net investment income $ 2,475,098 $ 4,416,932
Net realized gain on investments 357,663 386,036
Net change in unrealized appreciation/depreciation
on investments 2,088,011 3,159,831
- -----------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,920,772 7,962,799
===============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (2,503,130) (4,405,152)
Class C - -
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (2,503,130) (4,405,152)
===============================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 10,510,102 9,381,743
Reinvestment of distributions 1,630,447 2,088,771
Cost of shares reacquired (5,256,754) (8,076,736)
- -----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 6,883,795 3,393,778
===============================================================================================
NET INCREASE IN NET ASSETS 9,301,437 6,951,425
===============================================================================================
NET ASSETS
Beginning of year 49,330,264 94,550,490
- -----------------------------------------------------------------------------------------------
END OF YEAR $ 58,631,701 $ 101,501,915
===============================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ (171,755) $ (289,776)
===============================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<Page>
FINANCIAL HIGHLIGHTS
NATIONAL TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
Net asset value,
beginning of period $ 11.73 $ 11.33 $ 10.76 $ 10.79 $ 11.98 $ 11.48
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .26(a) .54(a) .53(a) .51(a) .59 .60
Net realized and
unrealized gain (loss) (.21) .40 .59 .01 (1.03) .47
----------- --------- --------- --------- --------- ---------
Total from investment
operations .05 .94 1.12 .52 (.44) 1.07
----------- --------- --------- --------- --------- ---------
Distributions to
shareholders from:
Net investment income (.26) (.54) (.55) (.55) (.56) (.57)
Net realized gain - - - - (.19) -
----------- --------- --------- --------- --------- ---------
Total distributions (.26) (.54) (.55) (.55) (.75) (.57)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.52 $ 11.73 $ 11.33 $ 10.76 $ 10.79 $ 11.98
=========== ========= ========= ========= ========= =========
Total Return(b) .48%(c) 8.57% 10.64% 5.02% (3.85)% 9.60%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .49%(c) 1.03% 1.01% .98% .95% .88%
Expenses, excluding
expense reductions .49%(c) 1.04% 1.06% .99% .95% .88%
Net investment income 2.24%(c) 4.74% 4.78% 4.85% 5.10% 5.18%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 524,667 $ 530,563 $ 512,426 $ 487,188 $ 542,601 $ 606,428
Portfolio turnover rate 65.29% 63.74% 77.46% 185.25% 254.13% 304.15%
============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
88
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
NATIONAL TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.76 $ 11.36 $ 10.79 $ 10.82 $ 11.98 $ 11.50
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .22(a) .47(a) .46(a) .44(a) .51 .52
Net realized and
unrealized gain (loss) (.20) .40 .60 .01 (.99) .46
----------- --------- --------- --------- --------- ---------
Total from investment
operations .02 .87 1.06 .45 (.48) .98
----------- --------- --------- --------- --------- ---------
Distributions to
shareholders from:
Net investment income (.23) (.47) (.49) (.48) (.49) (.50)
Net realized gain - - - - (.19) -
----------- --------- --------- --------- --------- ---------
Total distributions (.23) (.47) (.49) (.48) (.68) (.50)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.55 $ 11.76 $ 11.36 $ 10.79 $ 10.82 $ 11.98
=========== ========= ========= ========= ========= =========
Total Return(b) .19%(c) 7.88% 9.96% 4.32% (4.30)% 8.85%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .81%(c) 1.65% 1.64% 1.63% 1.54% 1.47%
Expenses, excluding
expense reductions .81%(c) 1.66% 1.69% 1.63% 1.54% 1.47%
Net investment income 1.92%(c) 4.12% 4.15% 4.15% 4.41% 4.49%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 39,221 $ 36,250 $ 28,531 $ 17,594 $ 16,053 $ 9,472
Portfolio turnover rate 65.29% 63.74% 77.46% 185.25% 254.13% 304.15%
============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
NATIONAL TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.76 $ 11.35 $ 10.77 $ 10.81 $ 11.99 $ 11.49
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .22(a) .47(a) .46(a) .45(a) .50 .52
Net realized and
unrealized gain (loss) (.21) .41 .60 (.01) (1.01) .47
----------- --------- --------- --------- --------- ---------
Total from investment
operations .01 .88 1.06 .44 (.51) .99
----------- --------- --------- --------- --------- ---------
Distributions to
shareholders from:
Net investment income (.23) (.47) (.48) (.48) (.48) (.49)
Net realized gain - - - - (.19) -
----------- --------- --------- --------- --------- ---------
Total distributions (.23) (.47) (.48) (.48) (.67) (.49)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.54 $ 11.76 $ 11.35 $ 10.77 $ 10.81 $ 11.99
=========== ========= ========= ========= ========= =========
Total Return(b) .12%(c) 7.95% 10.04% 4.23% (4.45)% 8.80%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .81%(c) 1.61% 1.68% 1.63% 1.63% 1.61%
Expenses, excluding
expense reductions .81%(c) 1.62% 1.73% 1.64% 1.63% 1.61%
Net investment income 1.92%(c) 4.16% 4.11% 4.19% 4.38% 4.44%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 46,316 $ 44,727 $ 37,803 $ 34,999 $ 38,409 $ 42,410
Portfolio turnover rate 65.29% 63.74% 77.46% 185.25% 254.13% 304.15%
============================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
90
<Page>
FINANCIAL HIGHLIGHTS
CALIFORNIA TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.19 $ 10.89 $ 10.29 $ 10.16 $ 11.12 $ 10.72
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .23(a) .52(a) .51(a) .53(a) .54 .54
Net realized and
unrealized gain (loss) (.27) .29 .61 .12 (.98) .39
----------- --------- --------- --------- --------- ---------
Total from investment
operations (.04) .81 1.12 .65 (.44) .93
----------- --------- --------- --------- --------- ---------
Distributions to
shareholders from
net investment income (.25) (.51) (.52) (.52) (.52) (.53)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.90 $ 11.19 $ 10.89 $ 10.29 $ 10.16 $ 11.12
=========== ========= ========= ========= ========= =========
Total Return(b) (.31)%(c) 7.65% 11.09% 6.62% (4.09)% 8.86%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .50%(c) 1.03% 1.00% .94% .93% .87%
Expenses, excluding
expense reductions .50%(c) 1.04% 1.04% .94% .93% .87%
Net investment income 2.14%(c) 4.82% 4.81% 5.30% 4.96% 4.98%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 187,199 $ 192,181 $ 192,624 $ 186,041 $ 207,113 $ 250,427
Portfolio turnover rate 46.31% 45.31% 72.84% 100.22% 185.43% 187.26%
============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
CALIFORNIA TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.20 $ 10.91 $ 10.30 $ 10.16 $ 11.12 $ 10.72
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .20(a) .46(a) .45(a) .47(a) .46 .47
Net realized and
unrealized gain (loss) (.27) .27 .61 .12 (.98) .38
----------- --------- --------- --------- --------- ---------
Total from investment
operations (.07) .73 1.06 .59 (.52) .85
----------- --------- --------- --------- --------- ---------
Distributions to
shareholders from
net investment income (.22) (.44) (.45) (.45) (.44) (.45)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.91 $ 11.20 $ 10.91 $ 10.30 $ 10.16 $ 11.12
=========== ========= ========= ========= ========= =========
Total Return(b) (.58)%(c) 6.94% 10.53% 6.02% (4.77)% 8.09%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .82%(c) 1.61% 1.55% 1.55% 1.60% 1.59%
Expenses, excluding
expense reductions .82%(c) 1.62% 1.59% 1.55% 1.60% 1.59%
Net investment income 1.82%(c) 4.22% 4.26% 4.70% 4.28% 4.26%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 15,477 $ 14,290 $ 11,591 $ 10,646 $ 12,767 $ 13,978
Portfolio turnover rate 46.31% 45.31% 72.84% 100.22% 185.43% 187.26%
============================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
92
<Page>
FINANCIAL HIGHLIGHTS
CONNECTICUT TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.71 $ 10.32 $ 9.79 $ 9.89 $ 10.73 $ 10.42
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .23(a) .50(a) .49(a) .49(a) .54 .52
Net realized and
unrealized gain (loss) (.15) .38 .53 (.08) (.86) .32
----------- --------- --------- --------- --------- ---------
Total from investment
operations .08 .88 1.02 .41 (.32) .84
----------- --------- --------- --------- --------- ---------
Distributions to
shareholders from
net investment income (.24) (.49) (.49) (.51) (.52) (.53)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.55 $ 10.71 $ 10.32 $ 9.79 $ 9.89 $ 10.73
=========== ========= ========= ========= ========= =========
Total Return(b) .77%(c) 8.79% 10.65% 4.32% (3.04)% 8.32%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .52%(c) 1.03% 1.01% 1.02% .95% .81%
Expenses, excluding
expense reductions .52%(c) 1.04% 1.03% 1.02% .95% .81%
Net investment income 2.20%(c) 4.82% 4.85% 5.10% 5.12% 4.95%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 99,955 $ 100,358 $ 101,242 $ 96,901 $ 111,758 $ 120,983
Portfolio turnover rate 25.89% 48.64% 21.52% 37.92% 53.76% 61.06%
============================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
93
<Page>
FINANCIAL HIGHLIGHTS
HAWAII TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.20 $ 5.01 $ 4.83 $ 4.84 $ 5.25 $ 5.07
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .11(a) .23(a) .22(a) .24(a) .26 .25
Net realized and
unrealized gain (loss) (.13) .20 .20 (.01) (.43) .18
----------- --------- --------- --------- --------- ---------
Total from investment
operations (.02) .43 .42 .23 (.17) .43
----------- --------- --------- --------- --------- ---------
Distributions to shareholders
from net investment income (.11) (.24) (.24) (.24) (.24) (.25)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.07 $ 5.20 $ 5.01 $ 4.83 $ 4.84 $ 5.25
=========== ========= ========= ========= ========= =========
Total Return(b) (.42)%(c) 8.78% 8.88% 4.94% (3.31)% 8.59%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .50%(c) 1.05% 1.04% .99% .97% .92%
Expenses, excluding
expense reductions .51%(c) 1.06% 1.07% .99% .97% .93%
Net investment income 2.14%(c) 4.60% 4.49% 5.03% 5.03% 4.78%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 76,170 $ 79,988 $ 71,022 $ 70,190 $ 71,619 $ 80,970
Portfolio turnover rate 22.21% 30.99% 32.38% 30.06% 27.63% 52.65%
============================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
94
<Page>
FINANCIAL HIGHLIGHTS
MINNESOTA TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.18 $ 5.00 $ 4.76 $ 4.78 $ 5.18 $ 5.05
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .11(a) .24(a) .25(a) .23(a) .27 .27
Net realized and
unrealized gain (loss) (.04) .18 .24 .01 (.41) .13
----------- --------- --------- --------- --------- ---------
Total from investment
operations .07 .42 .49 .24 (.14) .40
----------- --------- --------- --------- --------- ---------
Distributions to shareholders
from net investment income (.11) (.24) (.25) (.26) (.26) (.27)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.14 $ 5.18 $ 5.00 $ 4.76 $ 4.78 $ 5.18
=========== ========= ========= ========= ========= =========
Total Return(b) 1.46%(c) 8.56% 10.57% 5.32% (2.72)% 8.11%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver
and expense reductions .34%(c) .46% .19% .24% .23% .27%
Expenses, excluding waiver
and expense reductions .36%(c) .75% .82% .74% .73% .77%
Net investment income 2.10%(c) 4.79% 5.16% 5.00% 5.43% 5.19%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 31,027 $ 27,568 $ 24,708 $ 20,864 $ 19,843 $ 14,399
Portfolio turnover rate 12.13% 22.33% 24.34% 50.37% 22.87% 40.65%
============================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
95
<Page>
FINANCIAL HIGHLIGHTS
MISSOURI TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.41 $ 5.25 $ 4.96 $ 4.99 $ 5.36 $ 5.22
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .11(a) .23(a) .25(a) .24(a) .25 .25
Net realized and
unrealized gain (loss) (.06) .16 .29 (.02) (.37) .14
----------- --------- --------- --------- --------- ---------
Total from investment
operations .05 .39 .54 .22 (.12) .39
----------- --------- --------- --------- --------- ---------
Distributions to shareholders
from net investment income (.11) (.23) (.25) (.25) (.25) (.25)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.35 $ 5.41 $ 5.25 $ 4.96 $ 4.99 $ 5.36
=========== ========= ========= ========= ========= =========
Total Return(b) .92%(c) 7.67% 11.11% 4.63% (2.25)% 7.75%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver
and expense reductions .49%(c) 1.03% .89% 1.02% .99% .92%
Expenses, excluding waiver
and expense reductions .50%(c) 1.06% 1.08% 1.02% .99% .93%
Net investment income 2.16%(c) 4.44% 4.80% 4.98% 4.84% 4.80%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 148,632 $ 145,006 $ 130,122 $ 120,058 $ 125,775 $ 144,155
Portfolio turnover rate 31.36% 80.04% 43.75% 43.30% 78.85% 72.89%
============================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
96
<Page>
FINANCIAL HIGHLIGHTS
NEW JERSEY TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.37 $ 5.21 $ 4.96 $ 4.97 $ 5.54 $ 5.32
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .12(a) .25(a) .25(a) .25(a) .27 .26
Net realized and
unrealized gain (loss) (.12) .15 .26 -(b) (.47) .22
----------- --------- --------- --------- --------- ---------
Total from investment
operations - .40 .51 .25 (.20) .48
----------- --------- --------- --------- --------- ---------
Distributions to shareholders
from:
Net investment income (.12) (.24) (.26) (.26) (.26) (.26)
Net realized gain - - - - (.11) -
----------- --------- --------- --------- --------- ---------
Total distributions (.12) (.24) (.26) (.26) (.37) (.26)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.25 $ 5.37 $ 5.21 $ 4.96 $ 4.97 $ 5.54
=========== ========= ========= ========= ========= =========
Total Return(d) .02%(c) 7.96% 10.41% 5.31% (3.73)% 9.34%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver
and expense reductions .51%(c) 1.03% .90% .97% .93% .86%
Expenses, excluding waiver
and expense reductions .51%(c) 1.05% 1.06% .98% .93% .86%
Net investment income 2.29%(c) 4.77% 4.93% 5.03% 5.11% 4.85%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 158,962 $ 164,733 $ 160,171 $ 151,048 $ 163,237 $ 186,127
Portfolio turnover rate 35.24% 97.76% 101.02% 125.73% 185.16% 118.38%
============================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Amount is less than $0.01.
(c) Not annualized.
(d) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
SEE NOTES TO FINANCIAL STATEMENTS.
97
<Page>
FINANCIAL HIGHLIGHTS
NEW YORK TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.66 $ 11.16 $ 10.53 $ 10.51 $ 11.43 $ 11.03
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .26(a) .54(a) .53(a) .55(a) .58 .56
Net realized and
unrealized gain (loss) (.24) .49 .64 .02 (.94) .41
----------- --------- --------- --------- --------- ---------
Total from investment
operations .02 1.03 1.17 .57 (.36) .97
----------- --------- --------- --------- --------- ---------
Distributions to shareholders
from net investment income (.26) (.53) (.54) (.55) (.56) (.57)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.42 $ 11.66 $ 11.16 $ 10.53 $ 10.51 $ 11.43
=========== ========= ========= ========= ========= =========
Total Return(b) .23%(c) 9.50% 11.35% 5.65% (3.23)% 9.03%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .48%(c) 1.03% 1.01% .96% .93% .85%
Expenses, excluding
expense reductions .48%(c) 1.04% 1.04% .97% .93% .85%
Net investment income 2.32%(c) 4.80% 4.80% 5.28% 5.21% 5.06%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 243,447 $ 252,831 $ 242,367 $ 228,362 $ 248,456 $ 283,551
Portfolio turnover rate 21.25% 51.72% 70.03% 76.33% 52.67% 64.63%
============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
98
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
NEW YORK TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.67 $ 11.17 $ 10.54 $ 10.51 $ 11.42 $ 11.02
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .23(a) .48(a) .46(a) .49(a) .50 .49
Net realized and
unrealized gain (loss) (.25) .49 .65 .02 (.93) .40
----------- --------- --------- --------- --------- ---------
Total from investment
operations (.02) .97 1.11 .51 (.43) .89
----------- --------- --------- --------- --------- ---------
Distributions to shareholders
from net investment income (.23) (.47) (.48) (.48) (.48) (.49)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.42 $ 11.67 $ 11.17 $ 10.54 $ 10.51 $ 11.42
=========== ========= ========= ========= ========= =========
Total Return(b) (.11)%(c) 8.90% 10.74% 5.07% (3.93)% 8.34%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .81%(c) 1.51% 1.62% 1.55% 1.62% 1.57%
Expenses, excluding
expense reductions .81%(c) 1.52% 1.65% 1.56% 1.62% 1.57%
Net investment income 1.99%(c) 4.32% 4.19% 4.72% 4.49% 4.32%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 9,827 $ 8,798 $ 6,662 $ 5,278 $ 6,577 $ 6,706
Portfolio turnover rate 21.25% 51.72% 70.03% 76.33% 52.67% 64.63%
============================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
99
<Page>
FINANCIAL HIGHLIGHTS
TEXAS TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.47 $ 9.99 $ 9.43 $ 9.55 $ 10.69 $ 10.40
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .23(a) .45(a) .46(a) .51(a) .52 .51
Net realized and
unrealized gain (loss) (.17) .48 .57 (.13) (1.03) .40
----------- --------- --------- --------- --------- ---------
Total from investment
operations .06 .93 1.03 .38 (.51) .91
----------- --------- --------- --------- --------- ---------
Distributions to
shareholders from:
Net investment income (.22) (.45) (.47) (.50) (.52) (.53)
Net realized gain - - - - (.11) (.09)
----------- --------- --------- --------- --------- ---------
Total distributions (.22) (.45) (.47) (.50) (.63) (.62)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.31 $ 10.47 $ 9.99 $ 9.43 $ 9.55 $ 10.69
=========== ========= ========= ========= ========= =========
Total Return(b) .62%(c) 9.55% 11.30% 4.14% (4.96)% 9.24%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver
and expense reductions .51%(c) 1.00% .64% .99% .94% .91%
Expenses, excluding waiver
and expense reductions .51%(c) 1.05% 1.09% 1.01% .94% .91%
Net investment income 2.26%(c) 4.49% 4.70% 5.47% 5.12% 4.85%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 80,564 $ 81,369 $ 77,860 $ 74,405 $ 84,491 $ 92,607
Portfolio turnover rate 27.71% 89.30% 108.27% 163.39% 168.04% 143.78%
============================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
100
<Page>
FINANCIAL HIGHLIGHTS
WASHINGTON TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.32 $ 5.15 $ 4.89 $ 4.91 $ 5.38 $ 5.16
=========== ========= ========= ========= ========= =========
Investment operations
Net investment income .12(a) .26(a) .26(a) .27(a) .28 .27
Net realized and
unrealized gain (loss) (.08) .17 .26 (.04) (.50) .21
----------- --------- --------- --------- --------- ---------
Total from
investment operations .04 .43 .52 .23 (.22) .48
----------- --------- --------- --------- --------- ---------
Distributions to shareholders
from net investment income (.13) (.26) (.26) (.25) (.25) (.26)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.23 $ 5.32 $ 5.15 $ 4.89 $ 4.91 $ 5.38
=========== ========= ========= ========= ========= =========
Total Return(b) .76%(c) 8.71% 10.92% 4.90% (4.17)% 9.48%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .35%(c) .71% .70% .71% .66% .65%
Expenses, excluding
expense reductions .35%(c) .72% .73% .71% .66% .65%
Net investment income 2.38%(c) 5.14% 5.22% 5.58% 5.42% 5.20%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2003 -----------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 49,983 $ 49,049 $ 45,883 $ 44,512 $ 51,849 $ 62,754
Portfolio turnover rate 19.13% 40.20% 52.09% 152.63% 180.42% 141.56%
============================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
101
<Page>
FINANCIAL HIGHLIGHTS
FLORIDA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999
3/31/2003 ----------------------------- TO
(UNAUDITED) 2002 2001 9/30/2000*
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 4.97 $ 4.82 $ 4.57 $ 4.52
=========== =========== =========== =========
Investment operations
Net investment income .10(a) .23(a) .23(a) .23(a)
Net realized and
unrealized gain (loss) (.08) .15 .25 .03
----------- ----------- ----------- ---------
Total from investment
operations .02 .38 .48 .26
----------- ----------- ----------- ---------
Distributions to
shareholders from net
investment income (.11) (.23) (.23) (.21)
----------- ----------- ----------- ---------
NET ASSET VALUE, END OF PERIOD $ 4.88 $ 4.97 $ 4.82 $ 4.57
=========== =========== =========== =========
Total Return(b) .45%(c) 8.10% 10.68% 5.86%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .57%(c) 1.07% .99% .89%(c)
Expenses, excluding
expense reductions .57%(c) 1.08% 1.05% .89%(c)
Net investment income 2.15%(c) 4.74% 4.77% 5.00%(c)
<Caption>
YEAR ENDED 10/31
-------------------------------------
1999 1998 1997
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 4.98 $ 4.87 $ 4.79
========= ========= =========
Investment operations
Net investment income .23 .24 .24
Net realized and
unrealized gain (loss) (.46) .11 .09
--------- --------- ---------
Total from investment
operations (.23) .35 .33
--------- --------- ---------
Distributions to
shareholders from net
investment income (.23) (.24) (.25)
--------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 4.52 $ 4.98 $ 4.87
========= ========= =========
Total Return(b) (4.74)% 7.30% 7.12%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .97% .89% .86%
Expenses, excluding
expense reductions .97% .89% .86%
Net investment income 4.73% 4.79% 5.03%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999
3/31/2003 ----------------------------- TO
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 9/30/2000*
- --------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 82,602 $ 84,325 $ 83,798 $ 94,817
Portfolio turnover rate 40.65% 82.90% 84.37% 169.02%
==================================================================================================
<Caption>
YEAR ENDED 10/31
-------------------------------------
SUPPLEMENTAL DATA: 1999 1998 1997
- -----------------------------------------------------------------------
Net assets,
end of period (000) $ 100,924 $ 127,292 $ 137,252
Portfolio turnover rate 191.12% 140.61% 106.32%
=======================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
102
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
FLORIDA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999
3/31/2003 ------------------------- TO
(UNAUDITED) 2002 2001 9/30/2000*
------------------------------------------
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 4.98 $ 4.83 $ 4.58 $ 4.52
=========== ========= ========= =========
Investment operations
Net investment income .09(a) .20(a) .20(a) .20(a)
Net realized and
unrealized gain (loss) (.08) .14 .25 .04
----------- --------- --------- ---------
Total from investment
operations .01 .34 .45 .24
----------- --------- --------- ---------
Distributions to
shareholders from
net investment income (.10) (.19) (.20) (.18)
----------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 4.89 $ 4.98 $ 4.83 $ 4.58
=========== ========= ========= =========
Total Return(b) .13%(c) 7.32% 9.99% 5.44%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .89%(c) 1.73% 1.64% 1.42%(c)
Expenses, excluding
expense reductions .89%(c) 1.74% 1.70% 1.43%(c)
Net investment income 1.83%(c) 4.08% 4.13% 4.52%(c)
<Caption>
YEAR ENDED 10/31
-------------------------------------
1999 1998 1997
-------------------------------------
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 4.98 $ 4.87 $ 4.79
========= ========= =========
Investment operations
Net investment income .20 .20 .20
Net realized and
unrealized gain (loss) (.46) .11 .10
--------- --------- ---------
Total from investment
operations (.26) .31 .30
--------- --------- ---------
Distributions to
shareholders from
net investment income (.20) (.20) (.22)
--------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 4.52 $ 4.98 $ 4.87
========= ========= =========
Total Return(b) (5.43)% 6.52% 6.33%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions 1.62% 1.58% 1.57%
Expenses, excluding
expense reductions 1.62% 1.58% 1.57%
Net investment income 4.07% 4.09% 4.29%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999
3/31/2003 ------------------------- TO
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 9/30/2000*
- -----------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 5,872 $ 5,927 $ 5,230 $ 4,706
Portfolio turnover rate 40.65% 82.90% 84.37% 169.02%
===============================================================================================
<Caption>
YEAR ENDED 10/31
-------------------------------------
SUPPLEMENTAL DATA: 1999 1998 1997
- -----------------------------------------------------------------------
Net assets,
end of period (000) $ 6,046 $ 7,275 $ 7,496
Portfolio turnover rate 191.12% 140.61% 106.32%
=======================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
* The Trust changed its fiscal year-end.
SEE NOTES TO FINANCIAL STATEMENTS.
103
<Page>
FINANCIAL HIGHLIGHTS
GEORGIA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2003 ------------------------ TO -------------------------------------
(UNAUDITED) 2002 2001 9/30/2000* 1999 1998 1997
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.70 $ 5.44 $ 5.07 $ 4.91 $ 5.43 $ 5.31 $ 5.14
============ ========= ========== ========== ========= ========= =========
Investment operations
Net investment income .12(a) .23(a) .26(a) .21(a) .28 .27 .27
Net realized and
unrealized gain (loss) (.11) .26 .37 .19 (.50) .19 .19
------------ --------- ---------- ---------- --------- --------- ---------
Total from investment
operations .01 .49 .63 .40 (.22) .46 .46
------------ --------- ---------- ---------- --------- --------- ---------
Distributions to
shareholders from:
Net investment income (.11) (.23) (.26) (.24) (.26) (.27) (.28)
Net realized gain (.02) - - - (.04) (.07) (.01)
------------ --------- ---------- ---------- --------- --------- ---------
Total distributions (.13) (.23) (.26) (.24) (.30) (.34) (.29)
------------ --------- ---------- ---------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 5.58 $ 5.70 $ 5.44 $ 5.07 $ 4.91 $ 5.43 $ 5.31
============ ========= ========== ========== ========= ========= =========
Total Return(b) .22%(c) 9.27% 12.69% 8.59%(c) 4.36% 9.00% 9.27%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
waiver and expense
reductions .35%(c) .69% .31% .17%(c) .18% .24% .38%
Expenses, excluding
waiver and expense
reductions .36%(c) .72% .78% .63%(c) .68% .74% .88%
Net investment income 2.16%(c) 4.24% 4.81% 4.30%(c) 5.32% 5.07% 5.23%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2003 ------------------------ TO -------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 9/30/2000* 1999 1998 1997
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 77,825 $ 69,836 $ 46,235 $ 29,245 $ 27,432 $ 19,764 $ 13,897
Portfolio turnover rate 25.67% 48.66% 43.50% 122.44% 115.87% 126.52% 90.40%
===================================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
*The Trust changed its fiscal year-end.
SEE NOTES TO FINANCIAL STATEMENTS.
104
<Page>
FINANCIAL HIGHLIGHTS
MICHIGAN TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2003 ------------------------ TO -------------------------------------
(UNAUDITED) 2002 2001 9/30/2000* 1999 1998 1997
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.43 $ 5.20 $ 4.87 $ 4.75 $ 5.18 $ 5.06 $ 4.93
============ ========= ========== ========== ========= ========= =========
Investment operations
Net investment income .11(a) .25(a) .25(a) .21(a) .26 .26 .27
Net realized and
unrealized gain (loss) (.08) .23 .33 .14 (.44) .12 .13
------------ --------- ---------- ---------- --------- --------- ---------
Total from investment
operations .03 .48 .58 .35 (.18) .38 .40
------------ --------- ---------- ---------- --------- --------- ---------
Distributions to
shareholders from
net investment income (.12) (.25) (.25) (.23) (.25) (.26) (.27)
------------ --------- ---------- ---------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 5.34 $ 5.43 $ 5.20 $ 4.87 $ 4.75 $ 5.18 $ 5.06
============ ========= ========== ========== ========= ========= =========
Total Return(b) .62%(c) 9.57% 12.21% 7.57%(c) (3.55)% 7.59% 8.24%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
expense reductions .37%(c) .73% .69% .67%(c) .69% .69% .60%
Expenses, excluding
expense reductions .39%(c) .75% .74% .67%(c) .69% .69% .68%
Net investment income 2.14%(c) 4.77% 4.91% 4.37%(c) 5.21% 4.98% 5.37%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2003 ------------------------ TO -------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 9/30/2000* 1999 1998 1997
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 65,094 $ 58,632 $ 49,330 $ 45,666 $ 49,356 $ 53,139 $ 52,630
Portfolio turnover rate 45.43% 48.09% 100.27% 111.48% 186.97% 82.33% 68.50%
===================================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
*The Trust changed its fiscal year-end.
See Notes to Financial Statements.
105
<Page>
FINANCIAL HIGHLIGHTS
PENNSYLVANIA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2003 ------------------------ TO -------------------------------------
(UNAUDITED) 2002 2001 9/30/2000* 1999 1998 1997
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.37 $ 5.18 $ 4.90 $ 4.81 $ 5.28 $ 5.14 $ 5.01
============ ========= ========== ========== ========= ========= =========
Investment operations
Net investment income .11(a) .24(a) .25(a) .22(a) .26 .27 .28
Net realized and
unrealized gain (loss) (.10) .19 .28 .10 (.47) .14 .13
------------ --------- ---------- ---------- --------- --------- ---------
Total from investment
operations .01 .43 .53 .32 (.21) .41 .41
------------ --------- ---------- ---------- --------- --------- ---------
Distributions to
shareholders from
net investment income (.12) (.24) (.25) (.23) (.26) (.27) (.28)
------------ --------- ---------- ---------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 5.26 $ 5.37 $ 5.18 $ 4.90 $ 4.81 $ 5.28 $ 5.14
============ ========= ========== ========== ========= ========= =========
Total Return(b) .17%(c) 8.57% 11.06% 6.83%(c) (4.13)% 8.12% 8.37%
RATIOS TO AVERAGE NET ASSETS
Expenses, including
waiver and expense
reductions .55%(c) 1.08% .90% .88%(c) .96% .72% .61%
Expenses, excluding
waiver and expense
reductions .56%(c) 1.10% 1.06% .88%(c) .96% .72% .65%
Net investment income 2.12%(c) 4.66% 4.88% 4.54%(c) 5.02% 5.05% 5.47%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2003 ------------------------ TO -------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2002 2001 9/30/2000* 1999 1998 1997
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 100,543 $ 101,502 $ 94,550 $ 91,750 $ 93,835 $ 102,907 $ 94,237
Portfolio turnover rate 13.93% 60.87% 65.63% 61.00% 40.76% 65.20% 70.99%
===================================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
*The Trust changed its fiscal year-end.
SEE NOTES TO FINANCIAL STATEMENTS.
106
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
Lord Abbett Tax-Free Income Fund, Inc. (the "Company") and Lord Abbett Tax-Free
Income Trust (the "Trust") are registered under the Investment Company Act of
1940 (the "Act") as open-end management investment companies. The Company was
organized as a Maryland corporation on December 27, 1983. The Trust was
organized as a Massachusetts Business Trust on September 11, 1991 and was
reorganized as a Delaware Business Trust on July 22, 2002.
The Company consists of the following ten portfolios and their respective
classes (separately, a "Fund" and collectively, the "Funds"): Lord Abbett
National Tax-Free Income Fund ("National"), Class A, B, C and P shares; Lord
Abbett California Tax-Free Income Fund ("California") and Lord Abbett New York
Tax-Free Income Fund ("New York"), Class A, C and P shares; Lord Abbett
Connecticut Tax-Free Income Fund ("Connecticut"), Lord Abbett Hawaii Tax-Free
Income Fund ("Hawaii"), Lord Abbett Minnesota Tax-Free Income Fund
("Minnesota"), Lord Abbett Missouri Tax-Free Income Fund ("Missouri"), Lord
Abbett New Jersey Tax-Free Income Fund ("New Jersey"), Lord Abbett Texas
Tax-Free Income Fund ("Texas") and Lord Abbett Washington Tax-Free Income Fund
("Washington"), Class A and P shares. The Trust consists of the following four
portfolios and their respective classes (separately, a "Fund" and collectively,
the "Funds"): Florida Series ("Florida"), Class A, C and P shares; Georgia
Series ("Georgia"), Michigan Series ("Michigan") and Pennsylvania Series
("Pennsylvania"), Class A and P shares. Each Fund is non-diversified as defined
under the Act, except for National. As of the date of this report, no P shares
have been issued for any of the classes of shares.
The investment objective of each Fund is to seek the maximum amount of interest
income exempt from federal income tax as is consistent with reasonable risk.
Each Fund (except for National) also seeks as high a level of interest income
exempt from the personal income tax of its state as is consistent with
reasonable risk. New York also seeks as high a level of interest income exempt
from New York City personal income tax as is consistent with reasonable risk.
Each class has different expenses and dividends. A front-end sales charge is
normally added to the NAV for Class A shares. There is no front-end sales charge
in the case of the Class B, C and P shares, although there may be a contingent
deferred sales charge ("CDSC") as follows: certain redemptions of Class A shares
made within 24 months following any purchases made without a sales charge; Class
B shares redeemed before the sixth anniversary of purchase; and Class C shares
redeemed before the first anniversary of purchase. Class B shares will convert
to Class A shares on the eighth anniversary of your original purchase of Class B
shares.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) INVESTMENT VALUATION-Securities are valued at prices supplied by
independent pricing services approved by the Board of Directors/Trustees.
Such prices reflect broker/dealer supplied valuations and electronic data
processing techniques. Prices reflect the mean of the
107
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
bid and asked prices. Securities for which market quotations are not
readily available are valued at fair value, as determined by management and
approved in good faith by the Board of Directors/Trustees. Short-term
securities with 60 days or less remaining to maturity are valued using the
amortized cost method, which approximates current market value.
(b) SECURITY TRANSACTIONS-Security transactions are recorded as of the date
that the securities are purchased or sold (trade date). Realized gains and
losses from sales of portfolio securities are calculated using the
identified-cost method. Realized and unrealized gains or losses are
allocated to each class of shares, based upon the relative proportion of
net assets at the beginning of the day.
(c) INVESTMENT INCOME-Interest income is recorded on the accrual basis and
discounts are accreted and premiums are amortized using the effective
interest method. Investment income is allocated to each class of shares
based upon the relative proportion of net assets at the beginning of the
day.
(d) FEDERAL TAXES-It is the policy of each Fund to meet the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all taxable income to shareholders. Therefore, no
federal income tax provision is required.
(e) EXPENSES-Expenses incurred by the Company and Trust that do not
specifically relate to an individual Fund are allocated to the Funds on a
pro-rata basis. Expenses excluding class specific expenses are allocated to
each class of shares based upon the relative proportion of net assets at
the beginning of the day. Class A, Class B and Class C shares bear all
expenses and fees relating to their respective 12b-1 Distribution Plans.
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES
The Company and Trust each have a management agreement with Lord, Abbett & Co.
LLC ("Lord Abbett"), pursuant to which Lord Abbett supplies each Fund with
investment management services and executive and other personnel, pays the
remuneration of officers, provides office space and pays for ordinary and
necessary office and clerical expenses relating to research and statistical work
and supervision of each Fund's investment portfolio. The management fee is based
on each Fund's average daily net assets for each month at an annual rate of
0.50%.
108
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
12b-1 DISTRIBUTION PLAN
Each of the Funds have adopted a distribution plan (the "Plan") with respect to
one or more classes of shares pursuant to Rule 12b-1 of the Act, which provides
for the payment of ongoing distribution and service fees to Lord Abbett
Distributor LLC ("Distributor"), an affiliate of Lord Abbett. The fees are
accrued daily at annual rates based upon average daily net assets as follows:
<Table>
<Caption>
FEE CLASS A(1) CLASS B CLASS C CLASS P
- --------------------------------------------------------------------------------
Service .25%(2) .25% .25% .25%
Distribution .10%(3)(4) .75% .75% .20%
</Table>
(1) The Class A Plans of Minnesota, Washington, Georgia and Michigan will not
go into effect until the quarter subsequent to the net assets of each of
these Funds reaching $100 million. As of March 31, 2003, the net assets of
each such Fund have not reached $100 million.
(2) Annual service fee on shares sold prior to June 1, 1990 is .15% of the
average daily net asset value.
(3) In addition, until January 1, 2003, the Company and Trust paid an
incremental marketing expense of approximately .03% of average daily net
assets of Class A.
(4) In addition, the Company and Trust pay a one-time distribution fee of up to
1% on certain qualifying purchases, which is generally amortized over a
two-year period.
Effective January 1, 2003, the incremental marketing expense of approximately
..03% of average daily net assets of Class A was terminated under the Plan. Also,
effective January 1, 2003, Lord Abbett began providing certain administrative
services to each Fund pursuant to an Administrative Services Agreement at an
annual rate of .04% of each Fund's average daily net assets. This will result in
Lord Abbett paying fund accounting expenses that were previously charged to the
Funds.
COMMISSIONS
Distributor received the following commissions on sales of Class A shares of the
Funds after concessions were paid to authorized dealers for the six months ended
March 31, 2003:
<Table>
<Caption>
DISTRIBUTOR DEALERS'
COMMISSIONS CONCESSIONS
- --------------------------------------------------------------------------------
National $ 59,110 $ 278,551
California 20,611 93,656
Connecticut 18,035 84,163
Hawaii 7,527 35,867
Minnesota 21,333 110,832
Missouri 41,763 195,501
New Jersey 17,269 78,682
New York 19,381 93,606
Texas 5,897 34,807
Washington 18,043 84,339
Florida 12,053 57,008
Georgia 63,588 292,847
Michigan 33,216 169,771
Pennsylvania 20,382 92,701
</Table>
One Director/Trustee and certain of the Company's and Trust's officers have an
interest in Lord Abbett.
109
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS
Dividends from net investment income, if any, are declared daily and paid
monthly. Taxable net realized gains from investment transactions, reduced by
capital loss carryforwards, if any, are distributed to shareholders at least
annually. The capital loss carryforward amount is available to offset future net
capital gains. Dividends and distributions to shareholders are recorded on the
ex-dividend date. The amount of dividends and distributions from net investment
income and net realized capital gains are determined in accordance with federal
income tax regulations which may differ from accounting principles generally
accepted in the United States of America. These book/tax differences are either
considered temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the components of net
assets based on their federal tax basis treatment; temporary differences do not
require reclassification. Dividends and distributions which exceed net
investment income and net realized capital gains for tax purposes are reported
as distributions of paid-in capital.
The tax character of the distributions paid during the six months ended March
31, 2003 and the fiscal year ended September 30, 2002 are as follows:
<Table>
<Caption>
NATIONAL CALIFORNIA
- ----------------------------------------------------------------------------------------------
3/31/2003 9/30/2002 3/31/2003 9/30/2002
- ----------------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 13,535,095 $ 27,296,117 $ 4,601,324 $ 9,230,492
Ordinary income - - - -
Net long term capital gains - - - -
- ----------------------------------------------------------------------------------------------
Total distributions 13,535,095 27,296,117 4,601,324 9,230,492
Tax return of capital - - - -
- ----------------------------------------------------------------------------------------------
Total distributions paid $ 13,535,095 $ 27,296,117 $ 4,601,324 $ 9,230,492
==============================================================================================
<Caption>
CONNECTICUT HAWAII
- ----------------------------------------------------------------------------------------------
3/31/2003 9/30/2002 3/31/2003 9/30/2002
- ----------------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 2,235,036 $ 4,666,381 $ 1,596,134 $ 3,493,168
Ordinary income - - - -
Net long term capital gains - - - -
- ----------------------------------------------------------------------------------------------
Total distributions 2,235,036 4,666,381 1,596,134 3,493,168
Tax return of capital - - - -
- ----------------------------------------------------------------------------------------------
Total distributions paid $ 2,235,036 $ 4,666,381 $ 1,596,134 $ 3,493,168
==============================================================================================
<Caption>
MINNESOTA MISSOURI
- ----------------------------------------------------------------------------------------------
3/31/2003 9/30/2002 3/31/2003 9/30/2002
- ----------------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 639,743 $ 1,196,122 $ 2,918,496 $ 5,909,705
Ordinary income - - - -
Net long term capital gains - - - -
- ----------------------------------------------------------------------------------------------
Total distributions 639,473 1,196,122 2,918,496 5,909,705
Tax return of capital - - - -
- ----------------------------------------------------------------------------------------------
Total distributions paid $ 639,743 $ 1,196,122 $ 2,918,496 $ 5,909,705
==============================================================================================
</Table>
110
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<Table>
<Caption>
NEW JERSEY NEW YORK
- ----------------------------------------------------------------------------------------------
3/31/2003 9/30/2002 3/31/2003 9/30/2002
- ----------------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 3,669,269 7,410,189 $ 5,870,233 $ 11,624,964
Ordinary income - - - -
Net long term capital gains - - - -
- ----------------------------------------------------------------------------------------------
Total distributions 3,669,269 7,410,189 5,870,233 11,624,964
Tax return of capital - - - -
- ----------------------------------------------------------------------------------------------
Total distributions paid $ 3,669,269 $ 7,410,189 5,870,233 $ 11,624,964
==============================================================================================
<Caption>
TEXAS WASHINGTON
- ----------------------------------------------------------------------------------------------
3/31/2003 9/30/2002 3/31/2003 9/30/2002
- ----------------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 1,727,319 $ 3,456,519 $ 1,203,917 $ 2,369,030
Ordinary income - - - -
Net long term capital gains - - - -
- ----------------------------------------------------------------------------------------------
Total distributions 1,727,319 3,456,519 1,203,917 2,369,030
Tax return of capital - - - -
- ----------------------------------------------------------------------------------------------
Total distributions paid $ 1,727,319 $ 3,456,519 $ 1,203,917 $ 2,369,030
==============================================================================================
<Caption>
FLORIDA GEORGIA
- ----------------------------------------------------------------------------------------------
3/31/2003 9/30/2002 3/31/2003 9/30/2002
- ----------------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 1,973,679 $ 4,122,391 $ 1,501,625 $ 2,298,082
Ordinary income - - - -
Net long term capital gains - - 214,585 -
- ----------------------------------------------------------------------------------------------
Total distributions 1,973,679 4,122,391 1,716,210 2,298,082
Tax return of capital - - - -
- ----------------------------------------------------------------------------------------------
Total distributions paid $ 1,973,679 $ 4,122,391 $ 1,716,210 $ 2,298,082
==============================================================================================
<Caption>
MICHIGAN PENNSYLVANIA
- ----------------------------------------------------------------------------------------------
3/31/2003 9/30/2002 3/31/2003 9/30/2002
- ----------------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 1,421,522 $ 2,503,130 $ 2,242,423 $ 4,405,152
Ordinary income - - - -
Net long term capital gains - - - -
- ----------------------------------------------------------------------------------------------
Total distributions 1,421,522 2,503,130 2,242,423 4,405,152
Tax return of capital - - - -
- ----------------------------------------------------------------------------------------------
Total distributions paid $ 1,421,522 $ 2,503,130 $ 2,242,423 $ 4,405,152
==============================================================================================
</Table>
111
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At fiscal year end September 30, 2002, the capital loss carryforwards along with
the related expiration dates were as follows:
<Table>
<Caption>
AMOUNT YEARS OF EXPIRATION
- --------------------------------------------------------------------------------
National $ 11,784,908 2008 to 2009
California 9,044,550 2003 to 2008
Connecticut 1,706,225 2004 to 2009
Hawaii 2,151,325 2004 to 2009
Minnesota 560,978 2009
Missouri 783,352 2004 to 2009
New Jersey 3,467,129 2008
New York 9,622,180 2003 to 2009
Texas 3,342,289 2008 to 2009
Washington 1,953,418 2004 to 2009
Florida 9,075,251 2003 to 2008
Georgia - -
Michigan 1,778,081 2007 to 2008
Pennsylvania 762,318 2008
</Table>
As of March 31, 2003, the aggregate security unrealized gains and losses based
on cost for U.S. Federal income tax purposes are as follows:
<Table>
<Caption>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
TAX COST GAIN LOSS GAIN
- --------------------------------------------------------------------------------
National $ 589,429,428 $ 33,215,896 $ (1,082,775) $ 32,133,121
California 192,869,598 10,858,577 (16,594) 10,841,983
Connecticut 93,252,245 5,404,673 (7,418) 5,397,255
Hawaii 66,552,298 5,121,299 (82,846) 5,038,453
Minnesota 25,709,686 1,455,973 (3,076) 1,452,897
Missouri 137,694,982 7,694,396 (130,472) 7,563,924
New Jersey 148,294,030 9,942,602 (699,544) 9,243,058
New York 233,762,934 17,665,159 (273,912) 17,391,247
Texas 73,389,440 7,034,123 (183,501) 6,850,622
Washington 45,901,594 3,501,490 (144,786) 3,356,704
Florida 79,354,561 7,766,313 (63,219) 7,703,094
Georgia 71,643,414 3,335,698 (39,232) 3,296,466
Michigan 56,150,458 4,788,928 (7,504) 4,781,424
Pennsylvania 92,680,941 6,291,811 (88,085) 6,203,726
</Table>
The difference between book-basis and tax basis unrealized gains (losses) is
primarily attributable to wash sales and other temporary tax adjustments.
112
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
5. PORTFOLIO SECURITIES TRANSACTIONS
Purchases and sales of investment securities (other than short-term investments)
are as follows:
<Table>
<Caption>
SIX MONTHS ENDED MARCH 31, 2003
- --------------------------------------------------------------------------------
PURCHASES SALES
- --------------------------------------------------------------------------------
National $ 386,865,044 $ 387,156,284
California 91,141,261 94,026,020
Connecticut 25,087,488 28,428,136
Hawaii 16,059,322 19,700,517
Minnesota 4,772,440 3,259,620
Missouri 45,759,488 43,462,083
New Jersey 55,241,205 57,318,851
New York 53,202,207 62,592,732
Texas 21,602,825 24,584,669
Washington 12,422,553 9,029,057
Florida 33,991,307 36,295,072
Georgia 24,121,563 18,412,327
Michigan 31,240,249 26,464,012
Pennsylvania 13,658,455 14,400,447
</Table>
6. DIRECTORS'/TRUSTEES' REMUNERATION
The Company's and Trust's officers and the one Director/Trustee who are
associated with Lord Abbett do not receive any compensation from the Company or
Trust for serving in such capacities. Outside Directors'/Trustees' fees are
allocated among all Lord Abbett-sponsored funds based on the net assets of each
fund. There is an equity based plan available to all outside Directors/Trustees
under which outside Directors/Trustees must defer receipt of a portion of, and
may elect to defer receipt of an additional portion of Directors'/Trustees'
fees. The deferred amounts are treated as though equivalent dollar amounts have
been invested proportionately in the Company or Trust. Such amounts and earnings
accrued thereon are included in Directors'/Trustees' fees on the Statements of
Operations and in Directors'/Trustees' fees payable on the Statements of Assets
and Liabilities and are not deductible for federal income tax purposes until
such amounts are paid.
7. EXPENSE REDUCTIONS
The Funds have entered into agreements with their transfer agent and/or
custodian whereby credits realized as a result of uninvested cash balances are
used to reduce a portion of the Funds' expenses.
8. CUSTODIAN AND ACCOUNTING AGENT
State Street Bank and Trust Company ("SSB") is the Funds' custodian and
accounting agent. SSB performs custodian functions, and accounting and record
keeping functions, relating to portfolio transactions and calculating each
Fund's net asset value.
113
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
9. INVESTMENT RISKS
Each Fund's performance and the value of its investments will vary in response
to changes in interest rates and other market factors. As interest rates rise, a
Fund's investments typically will lose value. This risk is usually greater for
long-term bonds than for short-term bonds. As a result, the Funds, which tend to
invest in longer-term bonds than many other municipal bond funds, normally will
have more price volatility than those funds.
Additional risks that could reduce each Fund's performance or increase
volatility include call risk, governmental risk, legislative risk, management
risk and credit risk. Credit risk varies among states based upon the economic
and fiscal conditions of each state and the municipalities within the state.
Each Fund (except National) is non-diversified which means that it may invest a
greater portion of its assets in a single issuer than a diversified fund. Thus,
it may be exposed to greater risk.
Because each Fund other than National invests primarily in issuers of its
particular state, its performance may be more affected by local, state and
regional factors than a fund investing in municipal bonds issued in many states,
such as National. These factors may include economic, political or state
legislative developments, erosion of the tax base and the possibility of credit
problems. In addition, downturns or developments in the U.S. economy or in
foreign economies may harm the performance of each Fund, and may do so
disproportionately as a result of the corresponding disproportionate impact of
such occurrences on particular state, territory, or local economies.
Each Fund may invest up to 20% of its net assets in residual interest bonds
("RIBs"). RIBs, sometimes referred to as inverse floaters, are debt instruments
with a floating or variable interest rate that moves in the opposite direction
of the interest rate on another security or the value of an index. Changes in
the interest rate on the other security or index inversely affect the residual
interest paid on the RIB, with the result that when interest rates rise, RIBs
make lower interest payments and their values fall faster than fixed-rate bonds.
But when interest rates fall, not only do RIBs make higher interest payments,
their values also rise faster than fixed-rate bonds.
Each Fund may purchase securities on a forward commitment or when-issued basis.
Delivery and payment for such securities can take place a month or more after
the transaction date. During this period such securities are subject to market
fluctuations.
For a more complete discussion of the risks associated with the Funds, please
see the Funds' Prospectus.
114
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
10. SUMMARY OF CAPITAL TRANSACTIONS
The Company has 1,000,000,000 authorized shares of capital stock (par value
$.001) of which 900,000,000 are issued and allocated as follows: 150,000,000 to
National, 110,000,000 to each of California, New Jersey, and New York, and
70,000,000 to each of Connecticut, Hawaii, Minnesota, Missouri, Texas, and
Washington. The Trust has an unlimited number of shares of beneficial interest
authorized.
<Table>
<Caption>
SIX MONTHS ENDED MARCH 31, 2003(UNAUDITED)
- --------------------------------------------------------------------------------------------------------------
CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY
- --------------------------------------------------------------------------------------------------------------
Shares sold 511,344 681,062 1,081,991 2,019,036 1,614,613
Reinvestment of distributions 102,175 169,964 101,999 427,457 403,231
Shares reacquired (511,385) (1,229,192) (468,419) (1,460,503) (2,419,229)
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) 102,134 (378,166) 715,571 985,990 (401,385)
- --------------------------------------------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED MARCH 31, 2003(UNAUDITED)
- --------------------------------------------------------------------------------------------------------------
TEXAS WASHINGTON GEORGIA MICHIGAN PENNSYLVANIA
- --------------------------------------------------------------------------------------------------------------
Shares sold 345,206 807,006 2,756,502 2,055,973 1,114,141
Reinvestment of distributions 118,613 158,820 247,686 175,231 205,529
Shares reacquired (418,200) (617,521) (1,317,252) (854,670) (1,093,216)
- --------------------------------------------------------------------------------------------------------------
Increase 45,619 348,305 1,686,936 1,376,534 226,454
- --------------------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED SEPTEMBER 30, 2002
- --------------------------------------------------------------------------------------------------------------
CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY
- --------------------------------------------------------------------------------------------------------------
Shares sold 853,997 2,390,770 962,671 3,364,100 3,202,830
Reinvestment of distributions 208,106 365,054 190,599 868,887 817,964
Shares reacquired (1,502,754) (1,535,997) (773,983) (2,234,491) (4,127,923)
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) (440,651) 1,219,827 379,287 1,998,496 (107,129)
- --------------------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED SEPTEMBER 30, 2002
- --------------------------------------------------------------------------------------------------------------
TEXAS WASHINGTON GEORGIA MICHIGAN PENNSYLVANIA
- --------------------------------------------------------------------------------------------------------------
Shares sold 662,436 945,389 5,149,300 2,017,019 1,803,527
Reinvestment of distributions 241,267 302,561 342,996 313,339 404,088
Shares reacquired (928,704) (947,446) (1,736,593) (1,012,841) (1,561,369)
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) (25,001) 300,504 3,755,703 1,317,517 646,246
- --------------------------------------------------------------------------------------------------------------
</Table>
Transactions (both shares and dollars) in Funds with multiple classes are as
follows:
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
NATIONAL MARCH 31, 2003(UNAUDITED) SEPTEMBER 30, 2002
- ----------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------
Shares sold 3,326,798 $ 38,139,740 7,751,014 $ 87,781,034
Reinvestment of distributions 699,209 8,036,739 1,428,874 16,160,809
Shares reacquired (3,709,829) (42,597,715) (9,175,849) (103,951,138)
- ----------------------------------------------------------------------------------------------
Increase (decrease) 316,178 $ 3,578,764 4,039 $ (9,295)
- ----------------------------------------------------------------------------------------------
CLASS B SHARES
- ----------------------------------------------------------------------------------------------
Shares sold 645,263 $ 7,433,711 1,127,290 $ 12,857,643
Reinvestment of distributions 29,490 339,767 48,216 546,813
Shares reacquired (360,378) (4,147,601) (605,266) (6,875,994)
- ----------------------------------------------------------------------------------------------
Increase 314,375 $ 3,625,877 570,240 $ 6,528,462
- ----------------------------------------------------------------------------------------------
</Table>
115
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
NATIONAL MARCH 31, 2003(UNAUDITED) SEPTEMBER 30, 2002
- ----------------------------------------------------------------------------------------------
CLASS C SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------
Shares sold 440,578 $ 5,060,889 1,002,981 $ 11,383,352
Reinvestment of distributions 41,293 475,467 74,735 846,978
Shares reacquired (273,100) (3,140,961) (605,076) (6,832,378)
- ----------------------------------------------------------------------------------------------
Increase 208,771 $ 2,395,395 472,640 $ 5,397,952
- ----------------------------------------------------------------------------------------------
<Caption>
CALIFORNIA
- ----------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------
Shares sold 1,045,741 $ 11,361,035 2,019,108 $ 21,727,564
Reinvestment of distributions 212,876 2,321,205 448,801 4,840,005
Shares reacquired (1,267,679) (13,775,624) (2,972,942) (31,999,921)
- ----------------------------------------------------------------------------------------------
Decrease (9,062) $ (93,384) (505,033) $ (5,432,352)
- ----------------------------------------------------------------------------------------------
CLASS C SHARES
- ----------------------------------------------------------------------------------------------
Shares sold 265,285 $ 2,890,406 338,503 $ 3,667,344
Reinvestment of distributions 10,850 118,336 15,597 168,372
Shares reacquired (133,582) (1,447,854) (141,033) (1,511,658)
- ----------------------------------------------------------------------------------------------
Increase 142,553 $ 1,560,888 213,067 $ 2,324,058
- ----------------------------------------------------------------------------------------------
<Caption>
NEW YORK
- ----------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------
Shares sold 1,234,550 $ 14,009,331 2,823,672 $ 31,478,472
Reinvestment of distributions 302,722 3,454,609 613,701 6,853,956
Shares reacquired (1,914,296) (21,755,121) (3,456,554) (38,511,864)
- ----------------------------------------------------------------------------------------------
Decrease (377,024) $ (4,291,181) (19,181) $ (179,436)
- ----------------------------------------------------------------------------------------------
CLASS C SHARES
- ----------------------------------------------------------------------------------------------
Shares sold 159,248 $ 1,815,498 233,172 $ 2,609,870
Reinvestment of distributions 7,601 86,798 12,420 138,937
Shares reacquired (60,808) (689,246) (88,141) (985,659)
- ----------------------------------------------------------------------------------------------
Increase 106,041 $ 1,213,050 157,451 $ 1,763,148
- ----------------------------------------------------------------------------------------------
<Caption>
FLORIDA
- ----------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------
Shares sold 939,678 $ 4,567,888 1,145,637 $ 5,514,044
Reinvestment of distributions 157,669 767,669 312,748 1,501,638
Shares reacquired (1,131,998) (5,501,784) (1,887,030) (9,058,564)
- ----------------------------------------------------------------------------------------------
Decrease (34,651) $ (166,227) (428,645) $ (2,042,882)
- ----------------------------------------------------------------------------------------------
CLASS C SHARES
- ----------------------------------------------------------------------------------------------
Shares sold 55,180 $ 269,737 202,583 $ 971,606
Reinvestment of distributions 5,692 27,771 10,502 50,532
Shares reacquired (49,819) (243,162) (107,063) (511,602)
- ----------------------------------------------------------------------------------------------
Increase 11,053 $ 54,346 106,022 $ 510,536
- ----------------------------------------------------------------------------------------------
</Table>
116
<Page>
HOUSEHOLDING
The Company and the Trust have adopted a policy that allows them to send only
one copy of the Funds' prospectus, proxy material, annual report and semi-annual
report to certain shareholders residing at the same "household." This reduces
Fund expenses, which benefits you and other shareholders. If you need additional
copies or do not want your mailings to be "householded," please call Lord Abbett
at 800-821-5129 or send a written request with your name, the name of your fund
or funds and your account number or numbers to Lord Abbett Family of Funds, P.O.
Box 219100, Kansas City, MO 64121.
117
<Page>
[LORD ABBETT LOGO]
PRSRT STD
U.S. POSTAGE
PAID
PERMIT 552
HACKENSACK, NJ
Lord Abbett Tax-Free Income Fund, Inc.
Lord Abbett National Tax-Free Income Fund
Lord Abbett California Tax-Free Income Fund
Lord Abbett Connecticut Tax-Free Income Fund
Lord Abbett Hawaii Tax-Free Income Fund
Lord Abbett Minnesota Tax-Free Income Fund
Lord Abbett Missouri Tax-Free Income Fund
Lord Abbett New Jersey Tax-Free Income Fund
Lord Abbett New York Tax-Free Income Fund
Lord Abbett Texas Tax-Free Income Fund
Lord Abbett Washington Tax-Free Income Fund
Lord Abbett Tax-Free Income Trust
Florida Series
Georgia Series
Michigan Series LATFI-3-303
Pennsylvania Series (5/03)
This report when not used
for the general information of
shareholders of the Fund, is to
be distributed only if preceded or
accompanied by a current Fund Prospectus.
Lord Abbett Mutual Fund shares
are distributed by:
LORD ABBETT DISTRIBUTOR LLC
90 Hudson Street - Jersey City,
New Jersey 07302-3973
<Page>
ITEM 2: Code of Ethics.
Not applicable
ITEM 3: Audit Committee Financial Expert.
Not applicable.
ITEM 4-8: [Reserved]
ITEM 9: Controls and Procedures.
Not applicable.
ITEM 10: Exhibits.
ITEM 10(a): Not applicable.
ITEM 10(b): Separate certifications of each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2 under
the Act (17 CFR 270.30a-2) and Section 906 of the Sarbanes-Oxley Act of 2002 are
attached hereto as a part of EX-99.CERT.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
LORD ABBETT TAX-FREE INCOME FUND, INC.
/s/ Robert S. Dow
-----------------
Robert S. Dow
Chief Executive Officer,
Chairman and President
/s/ Joan A. Binstock
--------------------
Joan A. Binstock
Chief Financial Officer and Vice President
Date May 22, 2003
<Page>
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
LORD ABBETT TAX-FREE INCOME FUND, INC.
/s/ Robert S. Dow
-----------------
Robert S. Dow
Chief Executive Officer,
Chairman and President
/s/ Joan A. Binstock
--------------------
Joan A. Binstock
Chief Financial Officer and Vice President
Date May 22, 2003