<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 811-03942
Lord Abbett Tax-Free Income Fund, Inc.
--------------------------------------
(Exact name of registrant as specified in charter)
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Address of principal executive offices) (zip code)
Christina T. Simmons, Vice President & Assistant Secretary
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 201-6984
--------------
Date of fiscal year end: 9/30
Date of reporting period: 3/31/04
<Page>
ITEM 1: Report to Shareholders.
<Page>
[LORD ABBETT LOGO]
2004
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
INSURED INTERMEDIATE 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, 2004
<Page>
- --------------------------------------------------------------------------------
LORD ABBETT TAX-FREE INCOME FUND AND LORD ABBETT TAX-FREE INCOME TRUST
SEMI-ANNUAL REPORT
FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2004
DEAR SHAREHOLDERS: We are pleased to provide you with this overview of the
Fund's and Trust's strategies and performance for the six-month period ended
March 31, 2004. On this and the following pages, we discuss the major factors
that influenced performance.
Thank you for investing in Lord Abbett Mutual Funds. We value the trust
that you place in us and look forward to serving your investment needs in the
years to come.
BEST REGARDS,
/s/ Robert S. Dow
ROBERT S. DOW
CHAIRMAN
- --------------------------------------------------------------------------------
Q. WHAT WERE THE OVERALL MARKET CONDITIONS DURING THE REPORTING PERIOD?
A. Despite occasional disappointments in job reports, the overall trend in the
U.S. economy was positive in the period, providing more fuel to speculation that
the Federal Reserve Board would start raising interest rates again in 2004. The
Treasury markets reflected the turmoil, while the municipal bond market more
typically focused on issues related to supply and demand. There were signs,
however, of improving fiscal health in states and municipalities, and the
municipal bond market began to discount the possibility of future defaults.
After a slow period of new issuance during the November-January holiday
period, new bond issues began to fill the pipeline again in February and March.
One of the largest issuers in the period was California, which placed $2 billion
in general obligation bonds on the market in February. The bonds offered
investors generous yields, reflecting the state's earlier downgrade in credit
rating.
Stronger equity markets generally can be counted on to siphon some assets
out of municipal bonds into stocks. Certainly, this was the case in the first
three months of the fiscal year. Demand remained firm, however, as high
net-worth investors sought year-end tax shelters, and institutional investors
continued to find value relative to Treasuries. Demand from retail investors was
intermittent throughout the period and was particularly weak on those occasions
when municipal bond yields dipped below 5%, an unattractive level for most
individual investors. Following a series of terrorist attacks overseas in March,
cash flowed out of equities for the first time in many months, providing support
once again to the fixed-income market in general.
Overall, intermediate- to longer-term maturities outperformed short-term
maturities. In our opinion, short-term maturities remain a significantly
overbought segment of the market and the one most likely to experience the
greatest correction should interest rates rise. Lower-rated credits, in general,
performed well, as investors continued their search for yield in a low
interest-rate environment.
1
<Page>
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND/TRUST PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2004?
A. The Fund/Trust underperformed its long-only benchmark, the Lehman Municipal
Long Current Bond Index,(1) while exhibiting, for the most part, more favorable
performance against its peer groups, as represented in the Lipper Funds
Average.(2) See table below.
<Table>
<Caption>
SIX MONTH RETURN LEHMAN MUNICIPAL LEHMAN
9/30/2003 TO LIPPER FUNDS LONG CURRENT MUNICIPAL
3/31/2004 AVERAGE(2) BOND INDEX(1) INDEX(3)
---------------- ------------ ---------------- ---------
NATIONAL TAX-FREE FUND 3.40% 2.84% 4.71% 3.12%
CALIFORNIA TAX FREE FUND 3.76% 3.26% 4.71% 3.12%
CONNECTICUT TAX-FREE FUND 3.25% 2.75% 4.71% 3.12%
HAWAII TAX-FREE FUND 3.22% 2.60% 4.71% 3.12%
MINNESOTA TAX-FREE FUND 3.15% 3.00% 4.71% 3.12%
MISSOURI TAX-FREE FUND 2.95% 2.56% 4.71% 3.12%
NEW JERSEY TAX-FREE FUND 3.13% 2.92% 4.71% 3.12%
NEW YORK TAX-FREE FUND 3.06% 2.86% 4.71% 3.12%
TEXAS TAX-FREE FUND 3.31% 2.30% 4.71% 3.12%
WASHINGTON TAX-FREE FUND 2.87% 2.18% 4.71% 3.12%
INSURED INTERMEDIATE TAX-FREE FUND 2.15% 2.41% 4.71% 3.12%
FLORIDA TAX-FREE TRUST 2.75% 2.59% 4.71% 3.12%
GEORGIA TAX-FREE TRUST 3.46% 2.33% 4.71% 3.12%
MICHIGAN TAX-FREE TRUST 2.81% 2.37% 4.71% 3.12%
PENNSYLVANIA TAX-FREE TRUST 3.61% 2.83% 4.71% 3.12%
</Table>
STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS*
<Table>
<Caption>
10 YEARS/
1 YEAR 5 YEARS SINCE INCEPTION
------ ------- ---------------
NATIONAL TAX-FREE FUND 2.01% 4.23% 5.71%
CALIFORNIA TAX FREE FUND 1.61% 4.19% 5.29%
CONNECTICUT TAX-FREE FUND 2.10% 4.33% 5.59%
HAWAII TAX-FREE FUND 2.16% 3.95% 5.39%
MINNESOTA TAX-FREE FUND** 1.91% 4.55% 6.06%
MISSOURI TAX-FREE FUND 1.83% 4.46% 5.45%
NEW JERSEY TAX-FREE FUND 1.00% 3.89% 5.47%
NEW YORK TAX-FREE FUND 2.05% 4.78% 5.45%
TEXAS TAX-FREE FUND 2.60% 4.41% 5.88%
WASHINGTON TAX-FREE FUND 1.40% 4.20% 5.89%
INSURED INTERMEDIATE TAX-FREE FUND*** N/A N/A -1.05%
FLORIDA TAX-FREE TRUST 1.63% 3.95% 5.13%
GEORGIA TAX-FREE TRUST** 3.03% 5.35% 7.18%
MICHIGAN TAX-FREE TRUST 1.97% 5.24% 6.15%
PENNSYLVANIA TAX-FREE TRUST 2.53% 4.59% 5.90%
</Table>
PERFORMANCE DATA QUOTED ABOVE IS HISTORICAL. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE
PERFORMANCE DATA QUOTED. BECAUSE OF ONGOING MARKET VOLATILITY, FUND/TRUST
PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL FLUCTUATION. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND/TRUST WILL FLUCTUATE SO THAT
SHARES, ON ANY GIVEN DAY OR WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. YOU CAN OBTAIN PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH
BY CALLING LORD ABBETT AT 800-821-5129 OR REFERRING TO OUR WEBSITE AT
www.lordabbett.com.
*Standardized Average Annual Total Returns, which reflect performance at the
maximum 3.25% sales charge applicable to Class A share investments and include
the reinvestment of all distributions as of March 31, 2004.
**Inception date December 27, 1994.
***Inception date June 30, 2003.
2
<Page>
- --------------------------------------------------------------------------------
Q. WHAT WERE THE MOST SIGNIFICANT FACTORS AFFECTING PERFORMANCE?
A. Throughout the period, investors continued to show a preference for the
higher-yielding, lower quality area of the municipal bonds market, a sector in
which we do not participate. Accordingly, we did not benefit from capital
appreciation in that sector. Also detracting from performance was the short-term
defensive component of the portfolios, as shorter maturities in general
exhibited coupon-driven performance in the period.
Contributing to performance overall was our focus on longer-maturity,
high-quality municipal bonds--a highly liquid segment of the market throughout
the interest rate cycle and one that we believe is most consistent with a
long-term investment perspective. In general, we tended to avoid short-term
paper, preferring instead to build a defensive component in the portfolio
through more marketable paper such as pre-refunded bonds, when available,(4)
which are of high credit quality and offer high coupons.
Reflecting improvements in state budgets, holdings in tax-based general
obligation contributed to performance. Revenue bonds were also a positive factor
later in the period.
The Fund's and the Trust's portfolios are actively managed and, therefore,
their holdings and the weightings of a particular issuer or particular sector as
a percentage of portfolio assets are subject to change.
(1) Lehman Municipal Long Current Bond Index is a total return benchmark
designed for long-term municipal assets. The index includes bonds with a minimum
credit rating of BAA3, bonds issued as part of a deal of at least $50 million,
with an amount outstanding of at least $5 million, a maturity of twenty-two
years or greater and have been issued after December 31, 1990. Indices are
unmanaged, do not reflect the deduction of fees or expenses and are not
available for direct investment.
(2) Lipper Funds Average: Lipper Inc. is a nationally recognized organization
that reports on mutual fund total return performance and calculates fund
rankings. Peer averages are based on universes of funds with similar investment
objectives. Peer group averages include reinvested dividends and capital gains,
if any, and exclude sales charges.(C)2004 REUTERS. All rights reserved. Any
copying, republication or redistribution of Lipper content is expressly
prohibited without the prior written consent of Lipper. An investor cannot
invest directly in an average or index.
(3) Lehman Municipal Index is a broad measure of the municipal bond market with
maturities of at least one year. To be included in this index, bonds must have a
minimum credit rating of at least Baa, an outstanding par value of at least $3
million and be issued as part of a transaction of at least $50 million. Includes
both zero coupon bonds and bonds subject to the Alternative Minimum Tax. Indices
are unmanaged, do not reflect the deduction of fees or expenses and are not
available for direct investment.
(4) Pre-refunded bonds are older, tax-free bonds that typically pay coupons
higher than current market rates and that have been refinanced or "prepaid" by
the proceeds of a second bond issue. The proceeds of this second issuance are
used to "call" or pay off the original issue at its first call date. Until that
time, the monies are held in escrow and are usually invested in U.S. Treasuries.
As a result, pre-refunded bonds are generally deemed to have virtually no
default risk. Typically, when a bond becomes pre-refunded, it appreciates in
value because of its higher credit quality and improved marketability.
3
<Page>
- --------------------------------------------------------------------------------
IMPORTANT PERFORMANCE AND OTHER INFORMATION
THE VIEWS OF THE FUND'S AND TRUST'S MANAGEMENT AND THE PORTFOLIO HOLDINGS
DESCRIBED IN THIS REPORT ARE AS OF MARCH 31, 2004; THESE VIEWS AND HOLDINGS MAY
HAVE CHANGED SUBSEQUENT TO THIS DATE AND THEY DO NOT GUARANTEE THE FUTURE
PERFORMANCE OF THE MARKETS OR THE FUND/TRUST. INFORMATION PROVIDED IN THIS
REPORT SHOULD NOT BE CONSIDERED A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
A NOTE ABOUT RISK: See Notes to Financial Statements for a discussion of
investment risks. For a more detailed discussion of the risks associated with
the Fund/Trust, please see the Prospectus.
PERFORMANCE: Except where noted, comparative Fund/Trust performance does not
account for the deduction of sales charges and would be different if sales
charges were included. The Fund/Trust offers additional classes of shares with
distinct pricing options. For a full description of the differences in pricing
alternatives, please see the Prospectus.
THE PROSPECTUS CONTAINS IMPORTANT INFORMATION ABOUT THE FUND/TRUST, INCLUDING
THE FUND'S/TRUST'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND ONGOING EXPENSES,
THAT YOU SHOULD CAREFULLY CONSIDER BEFORE INVESTING. TO OBTAIN A PROSPECTUS OF
THE FUND/TRUST OR ANY LORD ABBETT MUTUAL FUND, PLEASE CALL YOUR INVESTMENT
PROFESSIONAL OR LORD ABBETT DISTRIBUTOR LLC AT 800-874-3733 OR VISIT
www.lordabbett.com. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
Mutual funds are not insured by the FDIC, are not deposits or other obligations
of, or guaranteed by banks, and are subject to investment risks including
possible loss of principal amount invested.
4
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 96.50%
EDUCATION 14.57%
Boise St Univ ID Rev Gen-Ser A(10) 4.50% 4/1/2033 AAA $ 1,110 $ 1,092,318
CA Ed Fac Auth Rev Ref
Pepperdine Univ Ser A(10) 5.00% 9/1/2033 AAA 10,000 10,339,200
Curators Univ MO Sys Facs Rev Ser A 4.75% 11/1/2028 AA 2,575 2,616,509
DE St Econ Dev Auth Rev
DE Tech Pk Univ De Proj(2) 6.00% 2/1/2021 AAA 900 1,051,830
District of Columbia Rev
James F Oyster Elem Sch Pilot(1) 6.25% 11/1/2021 A 450 499,612
Glendale AZ Ind Dev Auth
Midwestern Univ Ser A 5.75% 5/15/2021 BBB+ 1,000 1,085,130
Glendale AZ Ind Dev Auth
Midwestern Univ Ser A 5.875% 5/15/2031 BBB+ 1,000 1,058,380
IA Higher Ed Ln Auth Rev
Wartburg College(1) 5.50% 10/1/2033 A 1,500 1,593,990
Los Angeles CA Uni Sch
Dist Ser A(15) 5.00% 1/1/2028 AAA 7,000 7,283,220
LA St Univ & Agric &
Mech Clg Hlth Sciences Ctr Pj(15) 6.375% 5/1/2031 AAA 2,290 2,728,146
MA St Dev Fin Agy Rev Boston
Univ Ser P 5.375% 5/15/2039 A3 1,000 1,049,960
MA St Dev Fin Agy Rev Boston
Univ Ser P 6.00% 5/15/2059 A3 1,000 1,141,050
Maricopa Cnty AZ Sch Dist #69
Paradise Vy Ref-Second Ser(10) 5.00% 7/1/2013 AAA 2,150 2,427,952
MA St Hlth & Ed
Fac Auth Rev Boston College(15)(14) 5.125% 6/1/2033 AAA 3,810 3,992,689
NC Cap Fac Fin Agy Rev Duke
Univ Pj Ser A 5.25% 7/1/2042 AA+ 13,900 14,709,119
NY St Dorm Auth Rev
Fashion Inst Tech(11) 5.50% 7/1/2030 AAA 400 442,944
OR St Hlth Hsg Ed & Cul
Fac Auth Reed Clg Pj Ser A 5.75% 7/1/2032 AA- 3,800 4,264,968
PA St Higher Ed Facs Auth Rev
Ursinus College(16) 5.50% 1/1/2024 AA 1,000 1,070,930
RI St Hlth & Ed
Bldg Corp Rev Hgh Ed Fac Brown Univ 6.00% 9/1/2025 AA+ 7,070 7,635,671
TN St Sch Brd Auth Higher Ed
Fac Ser A(11) 5.125% 5/1/2021 AAA 615 656,187
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
TN St Sch Brd Auth Higher Ed
Fac Ser A 5.625% 5/1/2030 AA- $ 150 $ 163,696
Tulsa OK Ind Auth Rev Ser A(15) 5.375% 10/1/2020 Aaa 3,170 3,422,586
Univ Central AR Rev Hsg Sys(11) 6.50% 1/1/2031 AAA 2,425 2,894,504
Univ VT & St Agric College
Univ VT(2) 5.125% 10/1/2037 AAA 1,150 1,206,028
University NC Sys Pool Rev Ser A(2) 5.00% 4/1/2027 AAA 1,900 1,985,500
University VA Univ Rev Gen-Ser B 5.00% 6/1/2033 AAA 4,800 5,011,152
University VA Univ Rev
Residuals Ser 856 RIBs 8.70% 6/1/2019 Aaa 1,925 2,220,603
University VA Univ Rev
Residuals Ser 856 RIBs 8.70% 6/1/2020 Aaa 2,022 2,301,039
University VA Univ Rev
Residuals Ser 856 RIBs 8.70% 6/1/2021 Aaa 2,122 2,388,152
WV Univ Rev Univ
Sys WV Pj Ser A(2) Zero Coupon 4/1/2024 AAA 2,880 1,052,467
WV Univ Rev Univ
Sys WV Pj Ser A(2) Zero Coupon 4/1/2026 AAA 800 262,648
--------------
TOTAL 89,648,180
--------------
GENERAL OBLIGATION 15.12%
Akron OH Impt 5.80% 11/1/2020 AA- 575 667,632
Anchor Bay MI Sch Dist Sch
Bldg & Site 5.00% 5/1/2033 AA+ 1,000 1,040,880
Athens OH City Sch Dist Fac
Constr & Impt(11) 6.00% 12/1/2024 AAA 500 591,640
Bessemer AL School Warrants(2) 5.60% 2/1/2030 Aaa 2,000 2,168,080
Bremerton WA(2) 5.25% 12/1/2027 Aaa 1,000 1,056,150
Canton OH Sch Dist Ser A(15) 5.625% 12/1/2023 AAA 2,900 3,273,926
Clear Creek CO Sch Dist # Re I Ref(11) 5.00% 12/1/2019 AAA 650 696,143
Dallas TX 5.75% 2/15/2020 AA+ 1,615 1,838,064
Delaware Vy PA Regl Fin
Auth Loc Govt Rev Ser C(2) 7.75% 7/1/2027 AAA 1,000 1,417,520
Fairfield OH City Sch Dist
Ref Sch Impt(10) 5.375% 12/1/2020 AAA 1,410 1,539,607
FL St Brd Ed Ref Cap
Outlay Ser A(15) 5.00% 6/1/2013 AAA 1,500 1,691,175
Foothill De Anza CA Cmnty
College Dist Cap Apprec(15) Zero Coupon 8/1/2030 AAA 4,505 1,136,882
Georgetown Cnty SC Sch Dist(11) 5.25% 3/1/2020 AAA 2,485 2,692,547
HI St Ref Ser DB(15) 5.25% 9/1/2013 AAA 3,400 3,902,622
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Jefferson Cnty AL Sch Warrants(11) 5.50% 2/15/2020 AAA $ 1,000 $ 1,111,820
Lake Orion MI Cmnty Sch Dist Ser B 5.25% 5/1/2025 Aaa 4,900 5,189,247
Linn Cnty OR Sch Dist #55
Sweet Home(11) 5.50% 6/15/2020 AAA 1,000 1,123,470
Linn Cnty OR Sch Dist #55
Sweet Home(11) 5.50% 6/15/2025 AAA 2,245 2,480,164
Marion OH City Sch Dist Sch
Fac Constr & Impt(11) 5.625% 12/1/2022 AAA 500 570,055
New York NY Unrefunded
Balance Ser A 6.00% 5/15/2030 A 395 439,856
North East Indpt Sch Dist Tex
PSF GTD 4.75% 1/1/2034 AAA 5,000 5,040,300
North East Indpt Sch Dist Tex
RIBs PSF GTD 8.85% 8/1/2023 AAA 5,560 6,145,802
Omaha NE Ser B 5.25% 12/1/2025 AAA 11,900 11,933,677
OR St Alternate Energy Pj
Ser A AMT 5.00% 1/1/2015 AA- 1,415 1,503,692
OR St Alternate Energy Pj
Ser A AMT 5.05% 1/1/2016 AA- 1,795 1,903,346
OR St Alternate Energy Pj
Ser A AMT 5.10% 1/1/2017 AA- 980 1,035,586
Paw Paw MI Pub Sch Dist Sch
Bldg & Site 6.00% 5/1/2030 AA+ 550 637,648
Philadelphia PA Sch Dist Ser A(11) 5.75% 2/1/2030 AAA 1,200 1,349,364
Powell OH(10) 5.50% 12/1/2032 AAA 1,280 1,388,992
Richland Cnty SC 5.375% 3/1/2030 Aa1 1,140 1,228,088
Richland Cnty SC 5.375% 3/1/2031 Aa1 1,195 1,286,418
Richland Cnty SC 5.375% 3/1/2032 Aa1 1,255 1,349,087
Richland Cnty SC 5.375% 3/1/2033 Aa1 1,320 1,416,941
Richmond VA(11) 5.50% 1/15/2018 AAA 500 569,315
South Wash Cnty MN Indpt Sch
Dist #833 Ser A(15) 5.50% 2/1/2018 AAA 5,065 5,687,691
South Wash Cnty MN Indpt Sch
Dist #833 Ser A(15) 5.50% 2/1/2019 AAA 2,990 3,340,727
Sunman Dearborn IN Inter Sch
Bldg Corp First Mtg(10) 5.00% 1/15/2021 AAA 1,105 1,161,576
Teays Vy OH Loc Sch Dist
Sch Fac Constr 2 Impt(10) 5.375% 12/1/2020 Aaa 500 540,710
TX St Wtr Dev Brd 7.15% 8/1/2035 Aa1 1,915 1,951,098
Washtenaw Cnty MI Multi Lake
San Sew Sys Sylvan Twp Wtr(15) 4.75% 5/1/2021 AAA 700 717,661
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
WV St Pub Svc of Pj(15) 5.75% 6/1/2025 AAA $ 1,800 $ 2,039,112
WV St Ser D(10) 6.50% 11/1/2026 AAA 2,000 2,438,440
Whitehall MI Dist Sch 5.50% 5/1/2019 AA+ 1,400 1,579,844
Wood Cnty OH Pub Libr Impt(15) 5.875% 12/1/2022 Aaa 1,000 1,165,420
Wyandotte Cnty KS Sch 204
Bonner Springs Ser A(11) 5.60% 9/1/2020 Aaa 855 963,474
--------------
TOTAL 93,001,489
--------------
HEALTHCARE 11.86%
Abag Fin Auth for Nonprofit
Corp CA Ctfs Partn Woods Oblig(1) 6.20% 11/1/2029 A 1,000 1,100,060
AZ Hlth Fac Auth Rev AZ
Hlthcare Pooled Fin-C(10) 5.50% 6/1/2014 AAA 1,130 1,308,088
Clackamas Cnty OR Hosp Fac
Legacy Hlth Sys(15)(14) 5.00% 2/15/2015 AAA 1,600 1,742,720
Clackamas Cnty OR Hosp Fac
Legacy Hlth Sys(15)(14) 5.00% 2/15/2016 AAA 1,000 1,080,500
CO Hlth Fac Auth Rev
Catholic Hlth 5.25% 9/1/2024 AA 5,065 5,282,339
CO Hlth Fac Auth Rev
Portercare Adventis Hlth 6.625% 11/15/2026 A 2,000 2,230,700
Erie Cnty OH Hosp Facs Rev
Firelands Regl Med Ctr Ser A 5.50% 8/15/2022 A 1,000 1,043,790
Fargo ND Hlth Sys Rev
Meritcare Obligated Group A(15) 5.375% 6/1/2027 AAA 1,000 1,057,670
Fargo ND Hlth Sys Rev
Meritcare Obligated Ser A(2) 5.125% 6/1/2027 AAA 2,905 3,005,571
Harford Cnty MD Eco Dev
Battelle Mem Institute PJ(c) 5.25% 4/1/2034 A+ 2,625 2,715,746
Harris Cnty TX Hlth Fac Mem
Hermann Hlthcare Sys Ser A(c) 5.125% 12/1/2023 A 500 512,980
Harris Cnty TX Hlth Fac Mem
Hermann Hlthcare Sys Ser A(c) 5.125% 12/1/2024 A 1,085 1,107,720
Harris Cnty TX Hlth Fac Mem
Hermann Hlthcare Ser A 6.375% 6/1/2029 A 1,750 1,994,860
Highlands Cnty FL Fac Auth
Rev Hosp Adventist/Sunbelt Ser A 6.00% 11/15/2031 A 2,750 2,939,227
Jackson OH Hosp Fac Rev Cons
Hlth Sys Jackson Hosp(16) 6.125% 10/1/2023 AA 680 767,156
KY Eco Dev Fin
Auth Norton Hlthcare Inc Ser A(15) Zero Coupon 10/1/2025 AAA 4,300 1,409,024
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Knox Cnty TN Hlth Edl & Hsg
Facs Brd Hosp Facs Rev Ref(11) Zero Coupon 1/1/2023 AAA $ 2,000 $ 709,880
KS St Dev-Susan-Ser Z-Ks
Susan B Allen Mem Hosp(16) 5.125% 12/15/2023 AA 1,025 1,058,681
Lauderdale Cnty & Florence AL
Hlthcare Rev Coffee Hlth Ser A(15) 6.00% 7/1/2029 AAA 1,000 1,152,030
Lubbock TX Hlth Fac Dev Corp
Rev Sears Plains Pj(12) 5.70% 1/20/2041 AAA 2,490 2,642,363
MD St Hlth & Higher Ed Fac
Auth Rev North Arundel Hosp 6.50% 7/1/2026 A 1,000 1,120,440
MD St Hlth & Higher Ed Fac
Catholic Hlth Initiative Ser A 6.00% 12/1/2024 AA 100 114,002
MD St Hlth & Higher Ed Fac
Univ MD Med Sys 6.75% 7/1/2030 A3 1,950 2,235,305
Mesa AZ Ind Dev Auth
Discovery Hlth Sys Ser A(15) 5.75% 1/1/2025 AAA 750 835,695
Minneapolis & St. Paul MN Hsg
Healthpartners Oblic Group PJ 5.875% 12/1/2029 BBB+ 2,100 2,144,016
MS Hosp Equip & Fac
Forrest Cnty Auth Gen Hosp Pj(11) 6.00% 1/1/2030 Aaa 615 704,243
MO St Hlth & Ed Fac
Auth Rites PA-1049 RIBs(2) 16.425% 6/1/2010 NR 855 1,095,999
NH Hlth & Ed Fac
Auth Rev 6.00% 10/1/2024 A+ 250 266,215
NH Hlth & Ed Fac
Dartmouth-Hitchcock Oblig Gr(11) 5.50% 8/1/2027 AAA 3,500 3,788,470
NH Hlth & Ed Fac
Exeter Pj 5.75% 10/1/2031 A+ 1,550 1,621,703
NH St Hlth & Ed
Concord Hosp(11) 5.50% 10/1/2021 Aaa 710 791,906
NJ Hlthcare Fac Fin Auth Rev
Robert Wood Johnson Univ Hosp 5.75% 7/1/2031 A+ 700 745,906
NM St Hosp Equip Ln Council
Presbyterian Hlthcare Ser A 5.50% 8/1/2025 Aa3 2,000 2,106,200
Orange Cnty FL Hlth Fac Auth
Rev Hosp Orlando Regl 5.75% 12/1/2027 A2 1,000 1,051,380
OR St Hlth Hsg Ed &
Cultural Fac Auth Rev(2) 5.25% 11/15/2019 AAA 2,000 2,185,620
Pinellas Cnty FL Hlth Facs
Baycare Hlth System 5.50% 11/15/2033 A1 2,000 2,084,240
Plymouth MN Hlth Fac Rev West
Hlth Pj Ser A(11) 6.125% 6/1/2024 AAA 2,990 3,071,418
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
RI St Hlth & Ed
Bldg RI Hlth 6.50% 8/15/2032 BBB $ 1,000 $ 1,054,570
RI St Hlth & Ed
Bldg Roger Williams Rlty(8) 6.50% 8/1/2029 AAA 1,240 1,365,736
SC Jobs Eco
Dev Auth Hosp Facs Rev 6.375% 8/1/2034 BBB 2,000 2,133,620
St. Cloud MN Hlthcare Rev
Hosp Oblig Group Ser A(11) 6.25% 5/1/2018 Aaa 3,320 3,956,809
Sullivan Cnty TN Hlth Ed &
Hsg Fac Brd Rev Hosp 6.25% 9/1/2022 BBB+ 2,000 2,099,900
Tyler TX Hlth Fac Dev Corp
Hosp Rev Mother Frances Hosp 6.00% 7/1/2027 Baa1 1,500 1,562,100
--------------
TOTAL 72,996,598
--------------
HOUSING 5.20%
CO Hsg Fin Auth Multi
Fam Hsg Ser A AMT 6.80% 10/1/2037 AA+ 2,325 2,412,374
ID Hsg & Fin Assn SF Mtg AMT 5.25% 7/1/2033 Aaa 1,000 1,021,240
ID Hsg Agy Sing Fam Mtg
Ser F AMT(8)(18) 7.45% 7/1/2015 Aaa 230 236,426
IL Hsg Dev Auth Multi
Fam Hsg Lawndale AMT(8) 6.80% 12/1/2016 AAA 1,000 1,054,310
IL Hsg Dev Auth Multi
Fam Hsg Lawndale AMT(8) 7.10% 12/1/2034 AAA 1,500 1,580,400
Kansas City MO Ind Dev Auth
No Oak Crossing Sr Ser A-1 AMT(2) 5.30% 12/1/2020 AAA 1,170 1,207,791
KY Hsg Corp Hsg Rev Ser D AMT 5.25% 7/1/2022 AAA 500 514,040
MA St Hsg Fin Agy Hsg Rev
Rental Mtg Ser A AMT(2)(8) 7.35% 1/1/2035 AAA 1,365 1,413,444
MA St Hsg Fin Agy Hsg Rev
Sing Fam Ser 29 AMT 6.75% 6/1/2026 AA 540 551,837
MD St Cmnty Dev Admin
Dept Hsg & Cmnty Dev Ser B AMT 5.375% 9/1/2022 Aa2 4,160 4,255,846
MD St Cmnty Dev Admin
Residential Ser F AMT 5.50% 9/1/2022 Aa2 2,500 2,573,300
Minneapolis St Paul MN Hsg
Fin Rev Sing Fam Mtg Ser AB AMT(13) 6.25% 11/1/2030 AAA 420 447,779
MN St Hsg Fin Agy Sing
Fam Mtg Ser G-1 AMT 5.60% 7/1/2022 AA+ 360 372,614
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Hmownr Ln Ser B-1 AMT(13) 6.25% 3/1/2031 AAA 305 317,005
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Ser E-1 AMT(13) Zero Coupon 3/1/2029 AAA 805 200,002
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MT St Brd Hsg Sing Fam
Mtg Ser A-1(8)(18) 6.05% 12/1/2037 AA+ $ 4,255 $ 4,415,456
NE Invt Fin Auth Sing Fam
Ser D AMT(13)(7) 5.25% 9/1/2022 AAA 680 696,218
New Orleans LA Fin Auth Mtg
Rev Ser B-2 AMT(13) 6.00% 12/1/2018 Aaa 400 418,692
NC Hsg Fin Agy
Sing Fam Rev Ser BB AMT 6.25% 3/1/2012 AA 680 701,542
OK Hsg Fin Agy Sing Fam
Mtg Ser B-1(13) 5.30% 9/1/2026 Aaa 105 108,504
OK Hsg Fin Agy Sing Fam
Rev Cap Apprec Ser D-1(13) Zero Coupon 3/1/2029 Aaa 4,020 1,050,667
OK Hsg Fin Agy Sing Fam
Rev Mtg Homeowner Ser B-1 Zero Coupon 3/1/2029 Aaa 2,070 533,584
OK Hsg Fin Agy Sing Fam
Rev Mtg Homeowner
Ser D-2 AMT(13) Zero Coupon 9/1/2030 Aaa 2,120 416,877
Prince Georges Cnty MD Hsg
Sing Fam Ser A AMT(13)(7) 6.15% 8/1/2019 AAA 35 36,904
VT Hsg Fin Agy Sing Fam
Hsg Ser 16A AMT(11) 5.50% 11/1/2021 AAA 2,970 3,052,091
WV St Hsg Dev Fd
Hsg Fin Ser B AMT 5.25% 11/1/2018 AAA 2,345 2,399,920
--------------
TOTAL 31,988,863
--------------
INDUSTRIAL 2.71%
Clark Cnty NV Ind Dev
Rev Ser C AMT(2) 5.95% 12/1/2038 AAA 3,320 3,665,745
CT St Dev Auth Solid
Wst Dsp Fac Rev Pfizer Inc AMT 7.00% 7/1/2025 AAA 2,500 2,716,825
Jacksonville FL Swr & Solid
Wst Disp Fac Rev Anheuser AMT 5.875% 2/1/2036 A+ 500 519,705
Moraine OH Solid Waste Disp
General Motors Corp Pj AMT 5.65% 7/1/2024 Baa1 450 458,689
NJ Eco Dev Auth
NJ Nat Gas Co Pj AMT(2) 5.00% 12/1/2038 AAA 5,650 5,815,376
RI St Eco Dev
Providence Place Mall(16) 6.125% 7/1/2020 AA 550 635,063
Texas City TX Ind Dev Corp
Marine Term Rev Arco Pipe Line 7.375% 10/1/2020 AA+ 650 875,056
Wyandotte Cnty Kansas City KS
Univ Govt Ref GM Grp Pj 6.00% 6/1/2025 Baa1 1,900 1,994,715
--------------
TOTAL 16,681,174
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
LEASE 7.27%
AZ St Ctfs Partn Ser A(15) 5.00% 11/1/2020 AAA $ 200 $ 212,258
Bemidji MN Lease Rev MN St
Bureau Criminal Appreh(15) 5.75% 12/1/2018 Aaa 555 630,907
Bemidji MN Lease Rev MN St
Bureau Criminal Appreh(15) 5.75% 12/1/2019 Aaa 315 358,083
Berkeley Cnty SC Sch Dist Inst SAFE 5.00% 12/1/2028 A- 10,125 10,178,257
Boise City ID Lease Rev Urban
Renewal ADA Cnty Courts(2) 6.25% 8/15/2019 AAA 7,385 8,664,156
Charlotte NC Ctfs Partn Gov
Fac Pj-Ser G 5.375% 6/1/2026 AA+ 2,250 2,418,998
Dorchester Cnty SC Sch Dist
Growth Remedy Oppty Tax Hike(c) 5.25% 12/1/2029 A 4,000 4,071,640
Grand Rapids MI Pub Sch(15) 5.00% 11/1/2021 AAA 250 264,635
Greenville Cnty SC Sch Dist
Installment Pur Ref Bldg 5.50% 12/1/2028 AA- 5,500 5,878,785
Henrico Cnty VA Eco Dev Auth
Pub Fac Lease Rev Jail Pj 6.125% 11/1/2019 Aa1 1,000 1,189,840
Murray City UT Mun Bldg
Auth Ser A(2) 5.30% 12/1/2021 Aaa 2,925 3,137,589
Providence RI Redev Agy Rev
Pub Safety & Mun Bldgs Ser A(2) 5.75% 4/1/2029 Aaa 415 471,556
Spartanburg Cnty SC Sch Dist
McCarthy Teszler Pj(19) 5.00% 3/1/2022 AAA 1,000 1,053,000
St Paul MN Port Auth Lease
Rev Office Bldg 5.00% 12/1/2022 AA+ 1,000 1,056,010
West Vy City UT Muni Bldg(2) 5.50% 8/1/2027 AAA 1,000 1,083,140
WY Bldg Corp Rev(2) 6.00% 10/1/2019 AAA 1,425 1,689,893
WY Bldg Corp Rev(2) 6.00% 10/1/2021 AAA 2,000 2,370,480
--------------
TOTAL 44,729,227
--------------
MISCELLANEOUS 9.72%
AZ Tourism & Sports Auth Tax
Multipurpose Stadium(15) 5.375% 7/1/2022 Aaa 5,000 5,493,900
Bi State Dev Agy MO Met Dist
Metrolink Cross Cnty Pj-B(11) 5.00% 10/1/2032 AAA 14,615 15,220,061
Cache Cnty UT Sales Tax Rev(10) 5.00% 12/15/2022 AAA 1,470 1,542,809
Ernest N Morial New Orleans
LA Exhibit Hall Auth Spl Tax RIBs 9.36% 7/15/2028 AAA 5,000 5,625,400
Fontana CA Pub Fin Auth Tax
North Fontana Redev Pj Ser A(2) 5.375% 9/1/2025 AAA 1,540 1,653,190
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Fontana CA Pub Fin Auth Tax
North Fontana Redev Pj Ser A(2) 5.50% 9/1/2032 AAA $ 3,800 $ 4,114,146
George L Smith II GA World
Congress Ctr Auth Rev AMT(15) 5.75% 7/1/2015 AAA 1,500 1,671,105
George L Smith II GA World
Congress Ctr Rev AMT(15) 5.50% 7/1/2020 AAA 700 771,036
IN Bd Bk Rev St
Revolving Fund Prog Ser A 6.75% 2/1/2017 AAA 500 532,140
Larimer Cnty CO Sales & Use
Tax Rev Fairgrounds & Events(15) 5.00% 12/15/2019 AAA 750 803,438
LA Loc Govt Env Fac
Pkg Fac Garage Pj Ser A(2) 5.375% 10/1/2026 AAA 1,500 1,599,345
MA St Wtr Pollutn Abatement
Tr Rites-PA-1221 9.02%# 8/1/2011 AAA(b) 4,500 5,065,110
Memphis-Shelby Cnty TN Sports
Memphis Arena Pj(2) 5.25% 11/1/2023 AAA 1,765 1,899,828
MS Dev Bk Spl Oblig Cap Pj &
Equip Acquisition(2) 5.00% 7/1/2024 AAA 2,000 2,145,620
NY St Mun Bd Bk Agy Spl Sch
Purp Rev Ser C 5.00% 12/1/2023 A+ 3,275 3,344,758
Omaha Convention Hotel Corp.
Rite-PA 1078 RIBs(2) 8.712% 4/1/2010 AAA 5,000 5,408,700
UT Tran Auth Sales Tax Rev Ser A(11) 5.00% 6/15/2025 AAA 1,000 1,037,040
VA St Pub Bldg Auth Pub
Fac Rev Ser A 5.75% 8/1/2020 AA+ 600 690,624
Westminister CO Sales & Use
Tax Ref Rev(2) 5.25% 12/1/2022 AAA 1,090 1,177,200
--------------
TOTAL 59,795,450
--------------
POWER 3.16%
Grant Cnty WA Pub Util Dist
#2 Pr Rap Hydro 2nd Ser B AMT(15) 5.375% 1/1/2018 AAA 300 322,377
HI St Dept Bdg & Fin Spl Purp
Mtg Rev HI Elec Co Ser A AMT(15) 6.60% 1/1/2025 AAA 135 141,052
Los Angeles CA Wtr & Pwr Rev
Pwr Sys Ser A-A1(11) 5.25% 7/1/2020 AAA 2,600 2,827,916
MI St Strategic Fund Ltd
Oblig Ref-Detroit Ed Co
Pj-Ser A AMT(15) 4.875% 6/1/2029 AAA 13,100 12,995,986
NC Muni Pwr Agy
#1 Catawba Elec Rev(1)(4) 5.00% 1/1/2015 A 1,125 1,137,307
Salt River Proj AZ Agric Impt &
Pwr Dist Elec Sys Rev 4.75% 1/1/2032 AA 945 955,045
SC St Pub Svc(11) 5.25% 1/1/2019 AAA 950 1,042,616
--------------
TOTAL 19,422,299
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
PRE-REFUNDED 12.68%
Baltimore MD Rev Water Pj Ser A(11) 6.00% 7/1/2018 AAA $ 285 $ 338,295
Baltimore MD Rev Water Pj Ser A(11) 6.00% 7/1/2020 AAA 275 326,425
Cobb Cnty GA Kennestone Hosp
Auth Rev Ctfs Ser 86 A ETM(15) Zero Coupon 8/1/2015 AAA 1,000 536,770
Culpeper Cnty VA Sch(11) 6.00% 1/15/2021 AAA 690 818,154
Cumberland Cnty NC Ctfs Partn
Civic Ctr Proj Ser A(2) 6.40% 12/1/2019 AAA 2,800 2,956,072
Dallas TX Indpt Sch Dist PSF GTD 5.50% 2/15/2017 AAA 8,700 10,113,489
DE Transn Auth Trans
Sys Rev Sr 6.00% 7/1/2020 AA 6,215 7,377,205
Detroit MI Wtr Supply Sys Sr
Lien Ser A(10) 5.25% 7/1/2033 AAA 6,420 7,366,822
Detroit MI Wtr Supply Sys Sr
Lien Ser A(10) 5.75% 7/1/2028 AAA 1,500 1,781,865
Fayette Cnty GA Pub Fac Auth
Criminal Justice Center Pj 6.00% 6/1/2030 AA 3,500 4,176,130
Glendale AZ Dev Auth Ed Fac
Rev Amer Graduate Sch Intl(5) 7.125% 7/1/2020 AAA 1,000 1,084,820
Houston TX Wtr & Swr Sys
Rev Ser D(15) 6.125% 12/1/2029 AAA 1,400 1,447,684
IA Fin Auth Rev ETM 5.25% 8/15/2021 Aa2 235 251,095
Lane Cnty OR Sch Dist #052 5.625% 6/15/2020 Aa3 800 931,632
Lauderdale Cnty & Florence AL
Hlthcare Auth Rev(15) 5.75% 7/1/2019 AAA 2,000 2,298,020
Linn Cnty OR Cmnty Sch Dist
No 9 Lebanon(15) 6.125% 6/15/2025 AAA 5,000 5,964,300
NJ St 5.75% 5/1/2020 AA 1,000 1,171,570
New York NY Ser A 6.00% 5/15/2030 A 1,780 2,127,260
NJ St Transn Tr Fd Auth
Transn Sys Ser B 6.00% 6/15/2019 AA- 2,550 3,015,757
North Providence RI Ser A(15) 6.125% 7/1/2016 AAA 1,410 1,631,976
OH St 6.20% 8/1/2013 AA+ 750 815,677
Phoenix AZ Civic Impt Corp(10) 6.00% 7/1/2024 AAA 2,400 2,869,080
Puerto Rico Comwlth Pub Impt RIBs 10.393% 7/1/2029 A- 750 854,580
Puerto Rico Comwlth Ser A ETM 5.50% 10/1/2040 AAA 1,000 1,113,940
SC Jobs Economic
Dev Auth Hosp Fac Rev 7.375% 12/15/2021 BBB 2,000 2,556,960
Univ NM Tech Dev Corp
Lease Rev Univ Ctr Res Ser A(15) 6.55% 8/15/2025 AAA 1,410 1,466,738
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
VA St Pub Sch Auth Ser A 6.20% 8/1/2014 Aa1 $ 1,450 $ 1,503,563
Weber Cnty UT Mun Bldg Auth
Lease Rev(16) 7.50% 12/15/2019 Aaa 2,250 2,397,240
White Hsg Util Dist TN
Robertson/Sumner Cntys Wtr/Swr(11) 6.00% 1/1/2026 Aaa 1,090 1,281,895
Wyandotte Cnty KS Sch 500
Dist No. 500(11) 5.50% 9/1/2019 AAA 6,365 7,405,678
--------------
TOTAL 77,980,692
--------------
RESOURCE RECOVERY 0.37%
Cobb Cnty GA Solid Waste Mgmt
Auth Rev AMT 6.40% 1/1/2015 AAA 900 935,820
MO St Envr Impt & Enrg
Unrefunded Bal St Revolving B 7.20% 7/1/2016 Aaa 1,285 1,329,178
--------------
TOTAL 2,264,998
--------------
SPECIAL TAX 0.53%
Portland OR Urb Ren & Redev
Downtown Waterfront Ser A(2) 5.50% 6/15/2020 Aaa 650 731,686
Portland OR Urb Ren & Redev
Downtown Waterfront Ser A(2) 5.75% 6/15/2019 Aaa 1,500 1,731,120
Salida CA Area Pub Fac Fin
Agy Cmnty Fac Dist Spl Tax #1998-1(11) 5.25% 9/1/2028 AAA 355 376,825
San Juan Cnty NM Tax / Motor
Ref & Impt(15)(14) 5.25% 5/15/2022 AAA 390 418,883
--------------
TOTAL 3,258,514
--------------
TRANSPORTATION 7.38%
Billings MT Arpt Rev AMT(15) 6.10% 7/1/2016 AAA 190 222,627
Billings MT Arpt Rev AMT(15) 6.20% 7/1/2020 AAA 2,775 3,229,378
Houston TX Arpt Sys Rev Sub
Lien Ser A AMT(10) 5.50% 7/1/2012 AAA 1,610 1,810,300
Houston TX Arpt Sys Rev Sub
Lien Ser A AMT(11) 5.70% 7/1/2030 AAA 2,615 2,722,555
Metropolitan Transn Auth NY Ser B 5.25% 11/15/2032 A 10,000 10,555,500
Metropolitan Washington DC
Ref Ser A AMT(10) 5.00% 10/1/2033 AAA 3,800 3,868,970
Minneapolis & St. Paul MN Met
Sub Ser A(15) 5.00% 1/1/2028 AAA 1,415 1,478,038
Municipal Secs Trust Ctfs
144A Ser 7006 Tr Ctf Cl B RIBs(2) 9.031% 1/1/2031 Aaa 6,250 6,881,125
North TX Thruway Auth Dallas
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
North Twy Sys Rev Ref Ser C(11) 3.00% 1/1/2006 AAA $ 900 $ 924,012
PA St Tpk Comm Oil
Franchise Tax Rev Sub-Ser B(15) 5.00% 12/1/2031 AAA 4,750 4,934,062
Port Kalama WA Rev Ser B AMT 5.625% 12/1/2015 A3 1,025 1,071,771
Puerto Rico Comwlth Hwy &
Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 1,500 1,574,910
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(11)(6) 10.61% 7/1/2026 Aaa 500 566,100
RI St Eco Corp Arpt
Rev Ser B(10) 6.00% 7/1/2020 AAA 1,210 1,414,587
RI St Eco Corp Arpt
Rev Ser B(10) 6.00% 7/1/2028 AAA 1,200 1,391,052
San Francisco CA City & Cnty
Arpt Lease SFO Fuel Ser A AMT(11) 6.125% 1/1/2027 AAA 500 551,960
St Paul MN Port Auth Lease
Rev Office Bldg at Robnert St 3-11 5.00% 12/1/2027 AA+ 2,140 2,228,040
--------------
TOTAL 45,424,987
--------------
WATER/SEWER 5.93%
AZ Wtr Infra
Wtr Quality Ser A(c) 5.00% 10/1/2022 AAA 1,500 1,602,270
Brighton Township MI San Sew
Drainage Dist(11) 5.25% 10/1/2018 AAA 1,615 1,746,413
Broad River NC Wtr Auth(15) 5.375% 6/1/2026 Aaa 400 430,592
Chisholm Creek Util Auth KS
Bel Aire & Park City KS Proj(15) 5.25% 9/1/2020 Aaa 320 348,781
Chisholm Creek Util Auth KS
Bel Aire & Park City KS Proj(15) 5.25% 9/1/2021 Aaa 1,025 1,112,607
Gainesville GA Wtr & Sew Rev(11) 5.375% 11/15/2020 AAA 2,900 3,165,263
Gautier MI Util Dist Util Sys
Rev Ref(10) 5.125% 3/1/2019 Aaa 425 454,440
Grand Forks ND Wtr Rev Ser D(15) 5.375% 9/1/2020 Aaa 1,150 1,240,551
Iowa City IA Swr Rev(11) 5.375% 7/1/2020 Aaa 620 668,397
Kansas St Dev Fin Auth Rev
Pub Wtr Supply Revolving Ln-2 4.75% 4/1/2018 Aa3 1,180 1,213,205
Midlothian TX Wtr Dist(11) Zero Coupon 9/1/2022 AAA 2,000 811,700
New York City Muni Wtr Fin 5.125% 6/15/2031 AA 5,000 5,214,900
New York City Muni Wtr Fin
P-Rites-Pa-1248-RIBs 8.52% 12/15/2011 AA(b) 5,000 5,606,200
New York NY City Muni Wtr Fin
Auth Wtr & Swr Sys Rev Ser A 5.50% 6/15/2023 AA 1,050 1,106,332
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
NATIONAL TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
OR St Brd Bk Rev OR Econ
Cmnty Dev Dept Ser A(15) 5.50% 1/1/2017 AAA $ 570 $ 626,162
Paragould AR Wtr Swr & Elec Rev(2) 5.65% 12/1/2025 AAA 615 692,478
Rockingham NC Ctfs Partn(2) 5.00% 4/1/2020 AAA 1,205 1,298,062
SD Conservancy Dist(2) 5.00% 8/1/2022 Aaa 2,700 2,829,573
SD Conservancy Dist
Rev Clean Wtr St Revolving Fd(2) 5.00% 8/1/2022 Aaa 500 521,435
UT Wtr Fin Agy Rev Pooled
LN Fin Prog(2) 5.125% 7/1/2023 Aaa 1,000 1,050,990
WV St Wtr Dev Auth Rev Loan
Prog III Ser A AMT(2) 6.25% 7/1/2030 AAA 1,470 1,679,901
WV Wtr Dev Auth
Infra Rev Ser A(2) 5.50% 10/1/2023 AAA 900 994,617
WV Wtr Dev Auth Infra
Rev Ser A(11) 5.625% 10/1/2026 AAA 1,555 1,702,803
York Cnty VA Swr Rev 5.875% 6/1/2024 Aa3 330 372,418
--------------
TOTAL 36,490,090
--------------
TOTAL MUNICIPAL BONDS (COST $556,981,422) 593,682,561
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENTS 1.67%
MONEY MARKET MUTUAL FUNDS 1.67%
Dreyfus Municipal Cash Management Plus 10,302 10,301,602
SSgA Tax Free Money Mrkt Fund 3 2,811
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $10,304,413) 10,304,413
==============
TOTAL INVESTMENTS 98.17% (COST $567,285,835) $ 603,986,974
==============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
---------
MUNICIPAL BONDS 98.66%
EDUCATION 12.42%
Abag Fin Auth For Nonprofit
Corps CA Rev Sch of Mech Arts 5.25% 10/1/2026 A3 $ 500 518,485
CA Ed Fac Auth Rev Pepperdine Univ 5.75% 9/15/2030 A1 2,000 2,206,040
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
CA Ed Fac Auth Rev Res Ctfs
Ser 113 RIBs 9.075% 12/1/2027 AAA $ 2,525 $ 2,870,420
CA Ed Fac Auth Rev Scripps College 5.25% 8/1/2021 A1 425 447,920
CA Ed Fac Auth Rev Scripps College 5.25% 8/1/2026 A1 1,145 1,191,464
CA Ed Fac Auth Rev Univ of
Southern CA 5.50% 10/1/2027 AA+ 1,160 1,266,302
CA Ed Fac Auth Rev
Univ of San Diego(2) 5.00% 10/1/2028 Aaa 1,250 1,301,650
CA Ed Fac Auth Rev
Univ of San Francisco(15) 6.00% 10/1/2016 AAA 75 83,872
CA Ed Fac Auth Rev
Univ of San Francisco(15) 6.00% 10/1/2026 AAA 2,565 2,859,719
CA St Univ Fndtn Rev
Monterey Bay(15) 5.30% 6/1/2022 AAA 250 270,683
CA St Univ Fndtn Rev
Sacramento Auxiliary Ser A(15) 5.50% 10/1/2027 AAA 400 436,808
CA St Univ Rev &
Colleges Hsg Sys(10) 5.90% 11/1/2021 AAA 1,045 1,139,175
CA Statewide Cmntys
Dev Auth Aux Fndtn CA St Univ(15) 5.20% 6/1/2024 AAA 525 553,691
Golden Vy Uni Sch Dist Fin Proj(2) 5.35% 7/1/2027 AAA 2,250 2,407,950
Los Angeles CA Uni Sch
Dist Ser A(11) 5.00% 7/1/2022 AAA 1,500 1,583,955
Los Angeles CA Uni Sch
Dist Ser D(10) 5.375% 7/1/2025 AAA 1,000 1,068,360
Univ CA Rev Multi Purp Ser K 5.25% 9/1/2024 Aa2 1,545 1,635,862
Univ CA Rev Research
Facs Ser E(2) 5.00% 9/1/2031 AAA 2,000 2,073,880
--------------
TOTAL 23,916,236
--------------
GENERAL OBLIGATION 22.95%
Anaheim CA Unified High Sch
Dist Ser A(11) 5.00% 8/1/2025 AAA 785 816,369
Antelope Vy CA Unified High Sch(15) 5.00% 8/1/2022 AAA 2,180 2,302,908
Barstow CA Unified Sch Dist Ser A(10) 5.00% 8/1/2026 Aaa 2,500 2,596,375
Berryessa CA Unified Sch Dist
Election of 1999 Ser B(11) 5.25% 8/1/2019 AAA 1,015 1,114,582
CA St(10) 5.25% 9/1/2030 AAA 890 931,794
CA St Ref(15) 5.00% 2/1/2022 AAA 2,700 2,816,964
CA St Ser B AMT 5.70% 12/1/2032 A 640 653,683
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Capistrano CA Unified Sch
Dist Fac Impt Dist #1 Ser A(10) 6.00% 8/1/2024 AAA $ 2,500 $ 2,824,575
Centinela Valley CA High Sch
Election 2000 Ser D(10) 5.25% 8/1/2024 AAA 1,145 1,233,222
El Monte CA City Sch Dist Ser A(11) 6.25% 5/1/2025 AAA 1,230 1,416,234
Escondido CA Un Sch Dist Ser A(11) 5.25% 8/1/2022 AAA 2,000 2,151,900
Franklin-McKinley CA Sch Dist Ser B(11) 5.00% 8/1/2027 AAA 675 703,033
Fremont CA Unified High Sch
Dist Santa Clara Cnty Ser B(10) 5.25% 9/1/2025 AAA 1,000 1,057,250
Los Angeles CA Cmnty College Ser A(15) 5.00% 6/1/2026 AAA 2,375 2,464,728
Los Angeles CA Uni Sch
Dist Ser A(11) 5.00% 7/1/2024 AAA 1,000 1,045,850
Mojave CA Unified Sch Dist
Sch Fac Impt Dist #001(10) 5.00% 8/1/2024 AAA 1,060 1,104,605
Mojave CA Unified Sch Dist
Sch Facs Impt Dist No 001(10) 5.25% 8/1/2022 AAA 1,230 1,323,418
Montebello CA Unified Sch Dist(11) 5.00% 8/1/2020 AAA 350 374,549
Mount Pleasant CA Elem Sch
Dist 1998 Election Ser C(11) 5.50% 3/1/2026 AAA 465 509,063
Oxnard CA Unified High Sch
Dist Ref Ser A(15) 6.00% 2/1/2020 AAA 650 774,690
Oxnard CA Unified High Sch
Dist Ref Ser A(15) 6.20% 8/1/2030 AAA 3,000 3,542,790
Pittsburg CA Unified Sch Dist Ser E(11) 6.00% 8/1/2024 AAA 1,380 1,546,180
Pittsburg CA Redev Agy Los
Los Medanos Cmnty Dev Pj(2) Zero Coupon 8/1/2026 AAA 3,500 1,074,710
Pomona CA Unified Sch Dist(15) 6.15% 8/1/2030 AAA 1,000 1,209,470
Pomona CA Unified Sch Dist Ser A(15) 6.55% 8/1/2029 AAA 1,000 1,269,690
San Gabriel CA Unified Sch
Dist Ser A(11) 5.00% 8/1/2024 AAA 2,725 2,839,668
Santa Cruz CA City Elem Sch
Dist Ser B(10) 6.00% 8/1/2029 AAA 2,500 2,864,900
Southwestern Cmnty College(2) 5.375% 8/1/2025 AAA 1,500 1,619,115
--------------
TOTAL 44,182,315
--------------
HEALTHCARE 3.54%
CA Health Facs Fin Cottage
Health Sys Ser B(15) 5.00% 11/1/2033 AAA 2,000 2,059,760
CA Infra & Econ Dev
Bk Rev Kaiser Hosp Ser A 5.50% 8/1/2031 A 1,300 1,359,696
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
CA Infra & Econ Dev
Bk Rev Kaiser Hosp Ser B 5.55% 8/1/2031 A $ 650 $ 682,259
CA Infra & Econ
Scripps Research Inst Ser A 5.75% 7/1/2030 Aa3 1,500 1,657,860
Torrance CA Hosp Rev Torrance
Memorial Med Ctr Ser A 5.50% 6/1/2031 A+ 500 518,235
Torrance CA Hosp Rev Torrance
Memorial Med Ctr Ser A 6.00% 6/1/2022 A+ 500 545,845
--------------
TOTAL 6,823,655
--------------
HOUSING 2.82%
CA Hsg Fin Agy Rev
Home Mtg Ser K AMT**(15)(8) 0.00%/5.70% 2/1/2012
& 2015 AAA 5,295 3,592,816
CA Hsg Fin Agy Rev
Home Mtg Ser K AMT(15)(8) Zero Coupon 2/1/2022 AAA 5,000 1,839,550
--------------
TOTAL 5,432,366
--------------
INDUSTRIAL 5.56%
CA POLL CTRL FIN AUTH
REV SOUTHERN CA SER B AMT(2)(17) 6.40% 12/1/2024 AAA 10,435 10,713,093
--------------
LEASE 10.03%
CA St Pub Wk Brd
Lease Rev Dept Gen Svcs Teale Data(2) 5.25% 3/1/2020 AAA 1,000 1,074,850
Inglewood CA Pub Fin Auth
Rev Ser A(2) 5.25% 8/1/2021 AAA 600 655,008
Orange Cnty CA Recovery Ctfs
Partn Residual Ser 128 RIBs(15) 10.425% 7/1/2019 AAA(b) 2,500 3,050,450
Orange Cnty CA Recovery Ctfs
Partn Ser A(15) 6.00% 7/1/2026 AAA 750 827,760
Plumas Cnty CA Ctfs Partn Cap
Impt Prog-Ser A(2) 5.25% 6/1/2023 AAA 1,365 1,467,225
Sacramento CA City Fin Auth
Rev Cap Impt Ser A(2) 5.00% 12/1/2020 AAA 2,000 2,110,540
Sacramento CA City Fin Auth
Rev Cap Impt Ser A(2) 5.00% 12/1/2026 AAA 900 930,555
San Buenaventura CA Ctfs
Partn Ser C(2) 5.25% 2/1/2031 AAA 2,575 2,738,976
San Francisco CA City & Cnty
San Bruno Jail No 3(2) 5.25% 10/1/2033 AAA 5,000 5,325,400
Santa Ana CA Unified Sch Dist
Ctfs Partn Fin Pj(11) Zero Coupon 4/1/2019 AAA 2,295 1,132,192
--------------
TOTAL 19,312,956
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS 3.22%
CA Infra & Econ Bk
Rev Asian Museum Fdtn(15) 5.25% 6/1/2030 AAA $ 115 $ 121,634
CA Infra & Econ Bk
Rev YMCA Metropolitan LA Pj(2) 5.25% 2/1/2026 AAA 2,000 2,140,660
Fontana CA Pub Fin Auth Tax
North Fontana Redev Pj Ser A(2) 5.50% 9/1/2032 AAA 1,000 1,082,670
Midpeninsula Regl Open Space
Dist CA Fin Auth Rev(2) 4.50% 9/1/2023 AAA 300 299,604
Oakland CA JT Pwrs Fin Auth
Reassmt Rev 5.50% 9/2/2024 A- 405 433,974
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.50% 8/1/2029 BBB+ 1,000 1,085,850
Stockton CA Redev Agy Rev
Stockton Events Ctr-Arena Pj(10) 5.00% 9/1/2036 AAA 1,000 1,036,090
--------------
TOTAL 6,200,482
--------------
POWER 2.78%
CA St Dept Wtr Res Pwr Supply
Rev Insured Series(19) 5.375% 5/1/2017 AAA 500 556,505
Los Angeles CA Wtr & Pwr Rev
Pwr Sys Ser A(15)(14) 5.00% 7/1/2024 AAA 850 884,060
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN(15) 5.00% 7/1/2032 AAA 1,500 1,572,270
Puerto Rico Elec Pwr Auth Rev
Ser II(11) 5.125% 7/1/2026 AAA 500 533,500
Sacramento CA Muni Util Dist
Ref-Ser Q(11) 5.25% 8/15/2022 AAA 1,000 1,076,260
Shasta CA Jt Pwrs Fin Auth
Cnty Admin Bldg Pj Ser A(15) 5.25% 4/1/2023 AAA 675 720,832
--------------
TOTAL 5,343,427
--------------
PRE-REFUNDED 5.94%
CA Ed Fac Auth Rev Pooled
College/Univ Ser C ETM 6.50% 6/1/2020 Baa3 3,000 3,582,960
CA St Pub Wks Brd
Lease Rev Dept Corrections(2) 5.80% 1/1/2013 AAA 4,090 4,492,824
M-S-R Pub Pwr Agy CA San Juan
Pj Rev Ser D ETM(15) 6.75% 7/1/2020 AAA 980 1,216,856
Sacramento CA Muni Util Dist
Ser M(15)(14) 5.25% 7/1/2028 AAA 275 280,588
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Sacramento CA Muni Util Dist
Ser M(15)(14) 5.25% 7/1/2028 AAA $ 700 $ 714,224
Santa Cruz CA City High Sch Ser B(10) 6.00% 8/1/2029 AAA 1,000 1,145,960
--------------
TOTAL 11,433,412
--------------
RESOURCE RECOVERY 1.14%
CA Poll Ctrl Fin Auth
Rev Pacific Gas/Elec Ser A AMT(15) 5.35% 12/1/2016 AAA 2,000 2,189,660
--------------
SPECIAL TAX 7.14%
Concord CA Redev Agy Tax
Alloc Ser 3(3) 8.00% 7/1/2018 AAA 35 35,568
Csuci Fin Auth Rev CA East
Campus Cmnty Ser A(15) 5.25% 9/1/2026 AAA 5,500 5,785,395
Los Angeles Cnty CA Met Trans
Auth Sales Prop A-1St Sr-Ser A(11) 5.00% 7/1/2027 AAA 400 415,008
Riverside Cnty CA Redev Agy
Tax Alloc Jupura Valley Proj(2) 5.25% 10/1/2035 AAA 2,000 2,121,140
Rnr Sch Fin Auth CA Spl Tax
Cmnty Fac Dist #92-1 Ser A(2) 5.625% 9/1/2030 AAA 3,985 4,426,179
Salida CA Area Pub Fac Fin
Agy Cmnty Fac Dist Spl Tax #1998-1(11) 5.25% 9/1/2028 AAA 900 955,332
--------------
TOTAL 13,738,622
--------------
TRANSPORTATION 13.67%
Bay Area Govt Assn CA Rev
Bart SFO Extn-Arpt Premium-A(2) 5.00% 8/1/2026 AAA 2,000 2,077,100
Fresno CA Arpt Rev Ser A(11) 5.50% 7/1/2030 AAA 1,500 1,623,525
Port Oakland CA Port Rev Ser J(15) 5.50% 11/1/2026 AAA 5,000 5,405,450
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser D 5.75% 7/1/2041 A 5,400 6,146,766
Puerto Rico Comwlth Hwy &
Transn Auth Ser G(10) 5.25% 7/1/2021 AAA 1,000 1,096,510
San Francisco CA City & Cnty
Aprt Commn Ser 2 Issue 15A AMT(11) 5.00% 5/1/2017 AAA 2,000 2,113,240
San Francisco CA City & Cnty
Arpt Commn Rev Ser Issue 6 AMT(2) 6.50% 5/1/2018 AAA 4,500 4,607,685
San Francisco CA City & Cnty
Arpt Lease SFO Fuel Ser A AMT(11) 6.125% 1/1/2027 AAA 500 551,960
San Francisco CA City & Cnty
Commn Intl Arpt Rev AMT(11) 5.75% 1/1/2014 AAA 500 561,005
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
San Francisco CA City & Cnty
Ref Second Ser 28B(15) 5.25% 5/1/2023 AAA $ 2,000 $ 2,131,180
--------------
TOTAL 26,314,421
--------------
WATER/SEWER 7.45%
CA Statewide Cmntys
Pooled Fin Pg-Ser C(11) 5.25% 10/1/2034 AAA 500 530,285
El Monte CA Wtr Auth Rev(2) 5.60% 9/1/2029 AAA 2,000 2,213,800
Imperial CA Ctfs Partn Ref Wtr Fac(10) 5.00% 10/15/2020 AAA 3,250 3,478,735
Orange Cnty CA Sant Dist
Ctfs Partn(10) 5.25% 2/1/2027 AAA 4,265 4,539,496
Palo Alto CA Util Rev Ser A 6.25% 6/1/2020 AA+ 1,610 1,654,130
San Luis Opispo Cnty CA Ser A(15) 5.375% 8/1/2030 AAA 1,800 1,923,462
--------------
TOTAL 14,339,908
--------------
TOTAL MUNICIPAL BONDS (Cost $178,254,583) 189,940,553
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 0.23%
MONEY MARKET MUTUAL FUND 0.23%
Dreyfus General CA Fund Class A (Cost $445,767) 446 445,767
--------------
TOTAL INVESTMENTS 98.89% (Cost $178,700,350) $ 190,386,320
==============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
--------------
MUNICIPAL BONDS 98.08%
EDUCATION 19.46%
CT St Hlth & Ed Fac Auth Rev
CT College Ser E(15) 5.25% 7/1/2022 AAA $ 400 432,392
CT St Hlth & Ed Fac Auth Rev
Fairfield Univ Ser I(15) 5.25% 7/1/2019 AAA 600 650,628
CT St Hlth & Ed Fac Auth Rev
Fairfield Univ Ser I(15) 5.50% 7/1/2029 AAA 1,235 1,360,649
CT St Hlth & Ed Fac Auth Rev
Gunnery Sch(16) 5.35% 7/1/2031 AA 695 726,296
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
CT St Hlth & Ed Fac Auth Rev
Loomis Chaffee Sch Ser D 5.25% 7/1/2031 A2 $ 2,750 $ 2,905,980
CT St Hlth & Ed Fac Auth Rev
Miss Porters Sch Ser A 5.75% 7/1/2029 A+ 3,200 3,473,216
CT St Hlth & Ed Fac Auth Rev
Quinnipiac College Ser E(1)(11) 4.75% 7/1/2028 AAA 500 506,700
CT St Hlth & Ed Fac Auth Rev
Suffield Academy Ser A(15) 5.40% 7/1/2027 AAA 1,350 1,447,214
CT St Hlth & Ed Fac Auth Rev
Trinity College Ser E(15) 5.875% 7/1/2026 AAA 1,000 1,102,120
CT St Hlth & Ed Fac Auth Rev
Trinity College Ser G(2) 5.00% 7/1/2021 AAA 1,000 1,059,400
CT St Hlth & Ed Fac Auth Rev
Univ CT Fndtn Ser A 5.25% 7/1/2019 Aa3 200 217,808
CT St Hlth & Ed Fac Auth Rev
Univ CT Fndtn Ser A 5.375% 7/1/2029 Aa3 210 219,973
CT St Hlth & Ed Fac Auth Rev
Univ Hartford Ser E(16) 5.25% 7/1/2032 AA 2,900 3,013,883
CT St Hlth & Ed Fac Auth Rev
Univ New Haven Issue D(1)(4) 6.70% 7/1/2026 A 1,000 1,063,490
CT St Hlth & Ed Fac Auth Rev
Unrefunded Bal Sacred Hrt Ser C 6.50% 7/1/2016 BBB- 275 293,004
--------------
TOTAL 18,472,753
--------------
GENERAL OBLIGATION 23.05%
Bridgeport CT Ser C(10) 4.75% 8/15/2021 AAA 1,000 1,026,180
Bridgeport CT Ser C(10) 5.00% 8/15/2020 AAA 500 529,625
Hartford CT 6.50% 12/15/2005 A1 730 791,977
Montville CT 6.70% 6/15/2009 Aa3 550 664,829
Montville CT 6.70% 6/15/2010 Aa3 575 703,886
New Haven CT(10) 5.00% 11/1/2019 AAA 560 598,640
New Haven CT Ser A(2) 5.00% 11/1/2021 AAA 1,000 1,062,240
Puerto Rico Comwlth Pub Impt Zero Coupon 7/1/2018 A- 2,035 1,072,384
Puerto Rico Comwlth Pub Impt
Pub Impt Ser A 5.25% 7/1/2023 A- 2,300 2,459,551
Puerto Rico Comwlth Pub Impt Ref(11) 5.125% 7/1/2030 AAA 2,450 2,593,178
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- 1,170 1,207,381
Puerto Rico Comwlth Pub Impt Ser A(10) 5.00% 7/1/2032 AAA 4,285 4,487,938
Redding CT 6.60% 4/15/2010 Aa1 100 121,747
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Waterbury CT(11) 5.125% 4/1/2022 AAA $ 2,250 $ 2,379,060
Waterbury CT Ser A(11) 5.00% 4/1/2019 AAA 1,250 1,337,400
West Haven CT(15) 6.50% 6/15/2006 AAA 100 110,843
Westport CT Lot A 4.50% 2/1/2021 Aaa 720 736,164
--------------
TOTAL 21,883,023
--------------
HEALTHCARE 7.30%
CT St Dev Auth Rev Duncaster Inc Pj(16) 5.125% 8/1/2022 AA 235 245,542
CT St Hlth & Ed Fac Auth Rev
Bridgeport Hosp Ser A(15) 6.625% 7/1/2018 AAA 1,250 1,266,700
CT St Hlth & Ed Fac Auth Rev
Bristol Hosp Ser B(16) 5.50% 7/1/2021 AA 1,000 1,095,320
CT St Hlth & Ed Fac Auth Rev
Catholic Hlth East Ser F(15) 5.625% 11/15/2020 AAA 325 365,576
CT St Hlth & Ed Fac Auth Rev
Child Care Fac Prog Ser C(2) 5.625% 7/1/2029 AAA 1,000 1,103,320
CT St Hlth & Ed Fac Auth Rev
CT College Ser E(15) 5.00% 7/1/2032 AAA 1,050 1,096,525
CT St Hlth & Ed Fac Auth Rev
St. Francis Hosp & Med(16) 5.00% 7/1/2022 AA 1,000 1,045,850
CT St Hlth & Ed Fac Auth Rev
Waterbury Hosp Issue Ser C(16) 5.75% 7/1/2029 AA 650 710,132
--------------
TOTAL 6,928,965
--------------
HOUSING 6.22%
CT St Hsg Fin Auth Fin Prog
Subser A-2 AMT 5.50% 11/15/2022 AAA 1,000 1,037,040
CT St Hsg Fin Auth Hsg Mtg
Fin Prog Ser D 2 AMT 5.15% 11/15/2022 AAA 555 566,178
CT St Hsg Fin Auth Hsg Mtg
Fin Prog Subser A-2 5.35% 11/15/2022 AAA 500 516,690
CT St Hsg Fin Auth Spl
Oblig-Grp Home Mtg-G-h5(2) 5.85% 6/15/2030 AAA 500 534,005
CT St Hsg Fin Auth Spl
Oblig-Spl Needs Hsg-Sn-h1(2) 5.00% 6/15/2032 AAA 750 764,962
CT St Hsg Fin Auth Subser B-2 AMT 5.75% 11/15/2021 AAA 2,405 2,490,979
--------------
TOTAL 5,909,854
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL 3.40%
CT St Dev Auth Govt
Lease Rev(15) 6.60% 6/15/2014 AAA $ 500 $ 515,375
CT St Dev Auth Solid
Wst Dsp Fac Rev Pfizer Inc AMT 7.00% 7/1/2025 AAA 2,500 2,716,825
--------------
TOTAL 3,232,200
--------------
MISCELLANEOUS 1.14%
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.50% 8/1/2029 BBB+ 1,000 1,085,850
--------------
POWER 7.20%
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN(15) 5.00% 7/1/2032 AAA 1,500 1,572,270
Puerto Rico Elec Pwr Auth Rev
Ser II(11) 5.125% 7/1/2026 AAA 2,925 3,120,975
Puerto Rico Elec Pwr Auth Rev
Ser II 5.25% 7/1/2031 A- 1,000 1,062,330
Puerto Rico Elec Pwr Auth Ser HH(11) 5.25% 7/1/2029 AAA 1,000 1,080,190
--------------
TOTAL 6,835,765
--------------
PRE-REFUNDED 18.51%
CT St Hlth & Ed Fac Auth Rev
Auth Rev Sacred Heart Ser C 6.50% 7/1/2016 BBB- 725 817,655
CT St Ser A 5.625% 4/15/2020 AA 1,000 1,172,040
CT St Ser A 6.00% 4/15/2015 AA 1,000 1,192,790
CT St Ser B 5.375% 10/1/2011 AA 1,000 1,072,800
CT St Ser B 5.60% 6/15/2020 AA 250 290,780
CT St Ser D 5.125% 11/15/2018 AA 1,500 1,718,715
CT St Ser S FSA(11)(6) 5.00% 11/15/2009 AAA 1,600 1,808,160
CT St Spl Tax Oblig Rev(10) 6.10% 10/1/2011 AAA 1,000 1,035,260
CT St Spl Tax Oblig Rev
Transn Infra Ser A(10) 6.00% 12/1/2018 AAA 1,000 1,198,030
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM+ 9.589% 10/1/2040 Aaa 1,000 1,227,880
Puerto Rico Comwlth 6.00% 7/1/2026 AAA 1,000 1,150,490
Puerto Rico Elec Pwr Auth Rev Ser X 6.125% 7/1/2021 Aaa 750 812,303
Puerto Rico Elec Pwr Auth Ser T RIBs(11) 11.472% 7/1/2018 AAA 1,500 1,597,710
University CT Rev Student Fee Ser A(10) 5.75% 11/15/2020 AAA 205 244,061
University CT Rev Student Fee Ser A 6.00% 11/15/2021 AA- 390 470,172
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
University CT Rev Student Fee Ser A(10) 6.00% 11/15/2025 AAA $ 500 $ 602,785
University CT Ser A(10) 5.625% 3/1/2020 AAA 1,000 1,166,000
--------------
TOTAL 17,577,631
--------------
RESOURCE RECOVERY 1.10%
Stamford CT Wtr Poll Ctl
Sys & Fac Rev Ser A 5.00% 11/15/2032 AA+ 1,000 1,044,170
--------------
TRANSPORTATION 6.49%
CT St Spl Tax Oblig Rev Rite
PA 1039 R-A RIBs(11) 9.293% 1/1/2010 AAA 500 607,480
CT St Spl Tax Oblig Rev Rite
PA 1039 R-B RIBs(11) 9.293% 1/1/2010 AAA 785 940,932
CT St Spl Tax Oblig Rev Rite
PA 1039 R-C RIBs(11) 8.543% 7/1/2017 AAA 2,250 2,511,090
CT St Spl Tax Oblig Rev
Transn Infra Purp(10) 5.00% 1/1/2024 AAA 1,000 1,055,160
Puerto Rico Comwlth Hwy & Ser D(11) 5.00% 7/1/2032 AAA 1,000 1,047,360
--------------
TOTAL 6,162,022
--------------
WATER/SEWER 4.21%
CT St Dev Auth Wtr
Bridgeport AMT(2)(17) 6.15% 4/1/2035 AAA 500 558,135
CT St Dev Auth Wtr
Fac Rev CT Wtr Co Ser A AMT(2) 5.75% 7/1/2028 AAA 250 250,885
South Cent CT Regl Wtr Auth
16th Ser(2) 5.375% 8/1/2030 AAA 1,000 1,075,160
South Cent CT Regl Wtr Auth
18th Ser-A(15) 5.00% 8/1/2033 AAA 1,000 1,044,640
South Cent CT Regl Wtr Auth
Sys Rev 16th Ser(2) 5.375% 8/1/2025 AAA 1,000 1,072,280
--------------
TOTAL 4,001,100
--------------
TOTAL MUNICIPAL BONDS (Cost $86,863,226) 93,133,333
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 0.25%
MONEY MARKET MUTUAL FUND 0.25%
Dreyfus CT Muni Cash Management (Cost $235,138) 235 235,138
--------------
TOTAL INVESTMENTS 98.33% (Cost $87,098,364) $ 93,368,471
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HAWAII TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 99.09%
EDUCATION 7.27%
HI St Hsg Fin & Dev Corp Rev
Univ of HI Faculty Hsg Pj(2) 5.65% 10/1/2016 AAA $ 1,000 $ 1,070,040
HI St Hsg Fin & Dev Corp Rev
Univ of HI Faculty Hsg Pj(2) 5.70% 10/1/2025 AAA 380 405,316
Univ HI Univ Sys Rev(10) 5.125% 7/15/2032 AAA 1,000 1,039,920
Univ HI Univ Sys Rev Ser A(10) 5.50% 7/15/2029 AAA 2,500 2,710,550
--------------
TOTAL 5,225,826
--------------
GENERAL OBLIGATION 24.16%
HI Cnty HI Ser A(11) 5.00% 7/15/2023 AAA 1,000 1,049,120
HI Cnty HI Ser A(10) 5.50% 7/15/2017 AAA 1,045 1,185,375
HI Cnty HI Ser A(10) 5.60% 5/1/2013 AAA 1,780 2,083,454
HI Cnty HI Ser A(11) 5.625% 5/15/2019 AAA 545 616,711
HI St Ser BZ 6.00% 10/1/2010 AA- 500 595,970
HI St Ser BZ 6.00% 10/1/2012 AA- 500 599,645
HI St Ser CA(10) 8.00% 1/1/2013 AAA 2,000 2,681,360
HI St Ser CP(10) 5.00% 10/1/2016 AAA 900 971,667
HI St Ser CZ(11) 5.25% 7/1/2018 AAA 1,000 1,098,720
Honolulu HI City & Cnty Ser A(11) 5.125% 9/1/2021 AAA 600 635,772
Honolulu HI City & Cnty Ser A(10) 5.50% 9/1/2016 AAA 5 5,516
Honolulu HI City & Cnty Ser B(10) 5.00% 11/1/2016 AAA 265 286,515
Kauai Cnty HI Pub Impt Ser B(15) 5.25% 8/1/2017 AAA 95 104,599
Kauai Cnty HI Ser A(15) 5.50% 8/1/2021 AAA 2,495 2,801,037
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- 500 515,975
Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 2,000 2,140,100
--------------
TOTAL 17,371,536
--------------
HEALTHCARE 7.73%
HI St Dept Bdg & Fin Spl Purp
Mtg Rev St Francis Med Ctrs(11) 6.50% 7/1/2022 AAA 1,200 1,215,684
HI St Dept Bdg & Fin Spl Purp
Rev Kapiolani Hlth 6.20% 7/1/2016 BBB+ 1,000 1,045,760
HI St Dept Bdg & Fin Spl Purp
Rev Kapiolani Hlth 6.25% 7/1/2021 BBB+ 2,000 2,071,860
HI St Dept Bdg & Fin Spl Purp
Rev The Queens Hlth Sys Ser B(15) 5.25% 7/1/2023 AAA 1,000 1,067,160
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HAWAII TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Ind Tourist Ed
Med Mutuo Oblig Grp Ser A(15) 6.25% 7/1/2024 AAA $ 150 $ 158,259
--------------
TOTAL 5,558,723
--------------
HOUSING 4.36%
HI St Hsg Fin & Dev Corp Sing
Fam Mtg Purp Rev Ser A AMT(9) 7.10% 7/1/2024 AAA 725 726,385
HI St Hsg Fin & Dev Corp Sing
Fam Mtg Purp Rev Ser B(9) 5.30% 7/1/2028 AAA 850 868,479
HI St Hsg Fin & Dev Corp Sing
Fam Mtg Purp Rev Ser B(9) 5.45% 7/1/2017 AAA 1,000 1,035,800
Honolulu HI City & Cnty Mtg
Rev Smith Beretania 8A(15)(8) 5.45% 1/1/2025 Aaa 500 500,100
--------------
TOTAL 3,130,764
--------------
LEASE 0.74%
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.75% 8/1/2030 BBB+ 500 535,375
--------------
MISCELLANEOUS 5.87%
HI St Ctfs Partn Cap Dist
Kapolei St Office Ser A(2) 5.00% 5/1/2018 AAA 475 512,249
HI St Ctfs Partn Cap Dist St Office(15) 5.50% 5/1/2020 AAA 500 559,190
Puerto Rico Pub Bldg Auth Rev
Govt Fac Ser B(2) 5.00% 7/1/2027 AAA 1,000 1,039,820
Puerto Rico Pub Bldg Auth Rev
Gtd Govt Fac Ser D 5.25% 7/1/2036 A- 2,000 2,104,980
--------------
TOTAL 4,216,239
--------------
POWER 7.74%
HI St Dept Bdg & Fin Spl Purp
HI Elec Co Inc PJS-Ser A AMT(2) 5.10% 9/1/2032 AAA 1,500 1,529,715
HI St Dept Bdg & Fin Spl Purp
Mtg Rev HI Elec Co Ser A AMT(15) 6.60% 1/1/2025 AAA 2,500 2,612,075
Puerto Rico Elec Pwr Auth Rev
Ser II(11) 5.125% 7/1/2026 AAA 1,330 1,419,110
--------------
TOTAL 5,560,900
--------------
PRE-REFUNDED 26.63%
HI St Ser CT(11) 5.875% 9/1/2019 AAA 1,175 1,391,141
Hawaii St Ser CU(15) 5.25% 10/1/2020 AAA 1,700 1,954,269
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HAWAII TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
HI St Dept Bdg & Fin Spl Purp
Rev Kaiser Permanente Ser A ETM 5.15% 3/1/2015 A $ 1,250 $ 1,377,100
Honolulu HI City & Cnty Brd
Wtr Supply Wtr Sys Rev 5.80% 7/1/2021 AA 1,000 1,106,320
Honolulu HI City & Cnty Ser A(15) 5.00% 11/1/2015 AAA 405 450,234
Honolulu HI City & Cnty Ser A(15) 5.00% 11/1/2015 AAA 1,095 1,163,777
Honolulu HI City & Cnty Ser A(10) 5.50% 9/1/2016 AAA 555 633,743
Honolulu HI City & Cnty Ser A(10) 5.50% 9/1/2016 AAA 440 489,689
Honolulu HI City & Cnty Ser B(10) 5.00% 11/1/2016 AAA 235 263,454
Honolulu HI City & Cnty Wtr ETM(10)(17) 6.00% 12/1/2015 AAA 1,000 1,228,910
Kauai Cnty HI(10) 6.125% 8/1/2024 AAA 580 693,976
Maui Cnty HI Ser A(15) 5.00% 3/1/2022 AAA 750 785,865
Maui Cnty HI Ser A(15) 5.75% 6/1/2016 AAA 1,035 1,140,291
Maui Cnty HI Ser A(10) 6.10% 3/1/2020 AAA 500 597,385
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM+ 9.589% 10/1/2040 Aaa 1,250 1,534,850
Puerto Rico Comwlth 6.00% 7/1/2026 AAA 1,000 1,150,490
Puerto Rico Comwlth 6.50% 7/1/2023 AAA 1,250 1,285,350
Puerto Rico Comwlth Infra Fin
Auth Spl Ser A ETM 5.375% 10/1/2024 AAA 300 336,651
Puerto Rico Comwlth Infra Fin
Auth Spl Ser A ETM 5.50% 10/1/2032 AAA 200 224,512
Puerto Rico Ind Med & Envr
Poll Ctrl St. Luke Hosp Ser A 6.25% 6/1/2010 NR 1,250 1,336,163
--------------
TOTAL 19,144,170
--------------
TRANSPORTATION 12.99%
HI St Hwy Rev(11) 5.50% 7/1/2020 AAA 1,100 1,233,408
HI St Hbr Cap Impt Rev AMT(10) 6.25% 7/1/2015 AAA 500 515,450
HI St Hbr Cap Impt Rev AMT(10) 6.375% 7/1/2024 AAA 500 515,600
Puerto Rico Comwlth Hwy &
Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 1,000 1,049,940
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.675% 1/1/2010 NR 1,000 1,273,540
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser D 5.75% 7/1/2041 A 1,000 1,138,290
Puerto Rico Comwlth Hwy &
Transn Auth Transn Sub PR Rev 5.00% 7/1/2022 A- 20 20,734
Puerto Rico Comwlth Hwy
Transn Auth Hwy Rev Ser Y(15)(14) 5.50% 7/1/2036 AAA 250 281,860
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
HAWAII TAX-FREE FUND MARCH 31, 2004
<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% 7/1/2036 A $ 3,000 $ 3,309,510
--------------
TOTAL 9,338,332
--------------
WATER/SEWER 1.60%
Honolulu HI City & Cnty Brd
Wtr Supply Wtr Sys Rev(11) 5.25% 7/1/2031 AAA 100 104,961
Honolulu HI City & Cnty Brd
Wtr Supply Wtr Sys Rev Ser A(10) 5.00% 7/1/2033 AAA 1,000 1,044,770
--------------
TOTAL 1,149,731
--------------
TOTAL MUNICIPAL BONDS (Cost $65,319,182) $ 71,231,596
==============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
MINNESOTA TAX-FREE FUND MARCH 31, 2004
<Table>
MUNICIPAL BONDS 94.70%
EDUCATION 14.26%
MN St Higher Ed Fac Auth Rev
Hamline Univ Ser 5-B 6.00% 10/1/2029 Baa1 500 536,365
MN St Higher Ed Fac Auth Rev
Macalester College Ser 4-J 5.55% 3/1/2017 Aa3 260 284,302
MN St Higher Ed Fac Auth Rev
Univ of St Thomas Ser 4-A1 5.625% 10/1/2016 A2 250 263,778
MN St Higher Ed Fac Auth Rev
Univ of St Thomas Ser 4-M 5.35% 4/1/2017 A2 250 262,438
Pequot Lakes MN Indpt Sch
Dist No 186(10) 5.25% 2/1/2022 AAA 1,550 1,673,551
Prior Lake MN Indpt Sch Dist
No 719 Ser A(10) 5.25% 2/1/2023 Aaa 1,470 1,580,029
Robbinsdale MN Indpt Sch Dist Ser B(15) 4.625% 2/1/2024 Aaa 825 839,008
University MN Ser A 5.75% 7/1/2018 AA 250 298,332
--------------
TOTAL 5,737,803
--------------
GENERAL OBLIGATION 14.27%
Elk River MN Sch Dist(15) 5.50% 2/1/2021 Aaa 500 559,230
Lake Superior MN Indpt Sch
Dist #381 Ser A(11) 5.00% 4/1/2023 Aaa 500 528,920
Medford MN Indpt Sch Dist
#763 Ser A(11) 5.50% 2/1/2031 Aaa 500 551,895
Minneapolis MN Ser E 5.00% 3/1/2026 AAA 500 517,325
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MINNESOTA TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MN St 5.25% 8/1/2014 AAA $ 265 $ 278,279
Morris MN Indp Sch Dist No 769 Bldg(15) 5.00% 2/1/2028 AAA 1,000 1,046,400
North St. Paul Maplewood MN
Indpt Sch Dist #622 5.125% 2/1/2025 AA+ 400 412,520
North St. Paul Maplewood MN
Indpt Sch Dist #622 Ser A 5.125% 2/1/2020 AA+ 100 104,572
Princeton MN Indpt Sch Dist #477(11) 5.125% 2/1/2024 Aaa 1,000 1,038,080
Puerto Rico Comwlth Pub Impt
Unrefunded-Pub Impt(15)(14) 5.00% 7/1/2028 AAA 175 182,742
Ramsey Cnty MN ST Aid Str-Ser C 5.00% 2/1/2024 AAA 500 523,200
--------------
TOTAL 5,743,163
--------------
HEALTHCARE 11.78%
Bemidji MN Hlthcare Fac
North Country Health Svcs(16) 5.00% 9/1/2024 AA 1,000 1,026,880
Duluth MN Economic Dev
Benedictine Hlth Sys-St Marys 5.25% 2/15/2028 A- 1,000 1,021,560
Duluth MN Economic Dev
Benedictine Hlth Sys-St Marys 5.25% 2/15/2033 A- 1,000 1,018,430
Hastings MN Hlthcare Fac Rev
Regina Med Ctr(1) 5.30% 9/15/2028 A 400 410,644
Minneapolis & St. Paul MN Hsg
Redev Auth Hlthcare Sys Ser A(11) 5.70% 8/15/2016 AAA 150 161,096
Minneapolis MN Healthcare Sys Rev(15) 5.00% 5/15/2021 AAA 250 265,402
MN Agric & Econ Dev Bd Rev
Hlthcare Fairview Hosp Ser A(15) 5.50% 11/15/2017 AAA 220 244,966
Rochester MN Hlthcare Fac Rev(15)(14) 5.50% 11/15/2027 AAA 500 539,900
St. Paul MN Hsg & Redev Auth
Franciscan Hlth Pj(12)(8) 5.30% 11/20/2022 AAA 50 52,097
--------------
TOTAL 4,740,975
--------------
HOUSING 16.25%
Crow Wing Cnty Minn Hsg Ser A(15) 4.90% 1/1/2034 Aaa 490 502,564
Dakota Cnty MN Hsg & Redev
Auth Sing Fam Mtg Rev AMT(13) 5.85% 10/1/2030 AAA 196 202,676
Fairbault MN Hsg & Redev Auth
Govt Trails Edge Apts Ser A 5.25% 2/1/2028 A3 300 302,670
Minneapolis MN Multi Fam Hsg
Rev Mtg East Village South(12)(8) 6.10% 7/20/2020 Aaa 1,000 1,079,110
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MINNESOTA TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Minneapolis MN Multi Fam
Rev Hsg East Phillips AMT(12) 5.25% 8/20/2044 Aaa $ 300 $ 304,194
MN St Hsg Fin Agy Rental
Hsg Ser A AMT 5.00% 2/1/2035 AA+ 500 503,300
MN St Hsg Fin Agy Residential
Hsg Fin Ser F AMT 5.40% 7/1/2030 AA+ 1,485 1,517,863
MN St Hsg Fin Agy Sing
Fam Mtg Ser D AMT 5.85% 7/1/2019 AA+ 115 118,910
MN St Hsg Fin Agy Sing
Fam Mtg Ser D AMT 6.40% 7/1/2015 AA+ 85 87,528
MN St Hsg Fin Agy Sing
Fam Mtg Ser E 5.90% 7/1/2025 AA+ 130 133,182
MN St Hsg Fin Agy Sing
Fam Mtg Ser G AMT 6.25% 7/1/2026 AA+ 65 67,063
Robbinsdale MN Hsg Dev Sr Hsg
Pj Ser B(10) 5.75% 1/1/2023 Aaa 250 261,515
Scott Cnty MN Hsg & Redev
Savage City Hamilton Apts Pj(2) 5.60% 2/1/2019 Aaa 80 83,311
St Paul MN Hsg & Redev Auth
Multi Fam Hsg Rev Selby AMT(12)(8) 5.50% 9/20/2044 Aaa 750 766,058
St Paul MN Port Auth Hsg
Burlington Apt(12) 5.35% 5/1/2031 AAA 500 504,560
St. Louis Park MN Multi Fam
Hsg Mtg Cmnty Hsg(8) 6.15% 12/1/2016 Aa2 100 104,652
--------------
TOTAL 6,539,156
--------------
LEASE 4.92%
Olmsted Cnty MN Hsg & Redev 5.00% 2/1/2023 AAA 275 285,106
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.75% 8/1/2030 BBB+ 500 535,375
Rochester MN Indpt Sch Dist
#535 Ctfs Partn(11) 5.125% 2/1/2020 AAA 85 91,180
St Paul MN Port Auth Lease
Rev Office Bldg 5.25% 12/1/2027 AA+ 1,000 1,066,510
--------------
TOTAL 1,978,171
--------------
MISCELLANEOUS 3.99%
Bemidji MN Lease Rev MN St
Bureau Crim Appreh(15) 5.80% 12/1/2021 Aaa 460 520,683
Douglas Cnty MN Hsg & Redev
Governmental Hsg Ser A(15) 5.50% 1/1/2032 Aaa 560 588,370
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
MINNESOTA TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MN St Retirement Sys
Bldg Rev 6.00% 6/1/2030 AAA $ 250 $ 290,332
St. Cloud MN Ctfs Partn 5.90% 12/1/2017 A+ 200 207,384
--------------
TOTAL 1,606,769
--------------
POWER 9.26%
Chaska MN Elec Rev Ser A 6.00% 10/1/2025 A3 250 271,193
Puerto Rico Elec Pwr Auth Rev
Ser DD(11) 4.50% 7/1/2019 AAA 95 97,489
Rochester MN Elec Util Rev(2)(17) 5.25% 12/1/2030 AAA 1,000 1,063,340
South MN Muni Agy Supply Sys
Rev Ser A(15) Zero Coupon 1/1/2021 AAA 1,135 530,124
South MN Muni Agy Supply Sys
Rev Ser A(15) 5.00% 1/1/2013 AAA 1,000 1,124,060
Western MN Mun Pwr Agy Pj Ser A(2) 5.50% 1/1/2016 Aaa 565 639,162
--------------
TOTAL 3,725,368
--------------
PRE-REFUNDED 4.61%
Minneapolis MN Spl Sch Dist
#001 Ctfs Partn 5.75% 2/1/2015 AA+ 100 113,493
Minneapolis MN Spl Sch Dist
#001 Ctfs Partn 5.75% 2/1/2017 AA+ 1,120 1,271,121
Minnesota Pub Fac Auth Wtr
Poll Ctrl Rev Ser A 6.25% 3/1/2016 AAA 100 104,701
Puerto Rico Comwlth Pub Impt
Pub Impt(15)(14) 5.00% 7/1/2028 AAA 325 367,273
--------------
TOTAL 1,856,588
--------------
TRANSPORTATION 10.46%
Minneapolis & St. Paul MN Met
Comm Arpt Rev Sub Ser C(10) 5.25% 1/1/2026 AAA 2,000 2,114,800
Minneapolis & St. Paul MN Met
Sub Ser A(15) 5.00% 1/1/2023 AAA 1,000 1,052,710
St Paul MN Port Auth Lease
Rev Office Bldg at Robnert St 3-11 5.00% 12/1/2027 AA+ 1,000 1,041,140
--------------
TOTAL 4,208,650
--------------
WATER/SEWER 4.90%
MN Pub Facs Auth Ser A 4.40% 3/1/2024 AAA 2,000 1,971,220
--------------
TOTAL MUNICIPAL BONDS (Cost $36,122,585) $ 38,107,863
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
MISSOURI TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 96.26%
EDUCATION 8.67%
Bowling Green MO Sch Dist R-I
Bldg Corp Leasehold Rev(15) 5.85% 3/1/2020 Aaa $ 1,000 $ 1,153,160
Curators Univ MO Sys Facs Rev Ser A 4.75% 11/1/2028 AA 2,585 2,626,670
Kansas Cnty MO Met Cmnty
Colleges Bldg Corp Rev Ref(10) 5.00% 7/1/2021 Aaa 1,000 1,057,100
Mehville MO Sch Dist #R9 Ctfs
Partn MO Cap Impt(11) 5.25% 9/1/2013 AAA 1,000 1,138,940
MO St Hlth & Ed Fac
Auth Ref Washington Univ Ser B 5.00% 3/1/2030 AA+ 1,800 1,862,550
MO St Hlth & Ed Fac
Auth Washington Univ Ser A 4.75% 11/15/2037 AA+ 2,050 2,062,608
MO St Hlth & Ed Fac
Auth Webster Univ(15) 5.25% 4/1/2021 Aaa 2,000 2,147,320
University MO Univ Rev
Ref-Sys Facs-Ser B(15)(14) 5.00% 11/1/2027 AAA 1,500 1,556,400
--------------
TOTAL 13,604,748
--------------
GENERAL OBLIGATION 18.23%
Belton MO Sch Dist No 124 MO
Direct Deposit Prog(11) 6.00% 3/1/2020 AAA 1,770 2,066,829
Boone Cnty MO Reorg Sch Dist #R-6 6.00% 3/1/2020 AA+ 500 582,375
Franklin Cnty MO Reorg Sch
Dist # R-XV 6.00% 3/1/2020 AA+ 390 453,106
Hazelwood MO Sch Dist Impt-MO
Direct Deposit PG 5.25% 3/1/2020 Aaa 630 688,981
Independence MO Sch Dist
Ref-MO Direct Deposit Prog(11) 5.00% 3/1/2012 AAA 2,810 3,162,824
Ladue MO Sch Dist 5.25% 3/1/2016 AAA 1,880 2,052,734
Puerto Rico Comwlth Pub Impt
Pub Impt-Ser A(15)(14) 5.50% 7/1/2029 AAA 1,000 1,178,480
Puerto Rico Comwlth Pub Impt
Pub Impt-Ser B(10) 5.50% 7/1/2011 AAA 3,985 4,648,462
Puerto Rico Comwlth Pub Impt
Ref Pub Impt-Ser C(11) 5.00%# 7/1/2021 AAA 3,000 3,309,930
Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 A- 3,595 3,739,016
Springfield MO Sch Dist
#R12 Direct Deposit Prog 5.85% 3/1/2020 AA+ 500 576,580
St. Louis Cnty MO Pattonville
#R-3 Sch Dist(10) 6.00% 3/1/2019 AAA 845 992,334
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MISSOURI TAX-FREE FUND MARCH 31, 2004
<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(15) Zero Coupon 3/1/2017 AAA $ 2,940 $ 1,708,581
St. Louis Cnty MO Sch Dist
#R-8 Lindbergh(15) Zero Coupon 3/1/2018 AAA 3,015 1,668,622
St. Louis MO Pub Safety(10) 5.125% 2/15/2018 AAA 270 288,406
University City MO Sch Dist(15) 10.00% 2/15/2008 AAA 1,175 1,504,364
--------------
TOTAL 28,621,624
--------------
HEALTHCARE 7.90%
Cape Girardeau Cnty MO Ind
Dev Auth Health Care Facs Rev 5.75% 6/1/2032 A-(b) 1,600 1,653,472
Hannibal MO Ind Dev Auth Hlth
Fac Rev Regl Hosp Ser A(11) 5.625% 3/1/2012 AAA 2,170 2,354,233
MO St Hlth & Ed Fac Auth BJC Hlth 5.25% 5/15/2032 AA 5,000 5,190,400
MO St Hlth & Ed Fac Auth Rev(2) 5.25% 6/1/2028 AAA 2,000 2,105,520
MO St Hlth & Ed Fac Auth
Rites PA-1049 RIBs(2) 16.425% 6/1/2010 NR 855 1,095,999
--------------
TOTAL 12,399,624
--------------
HOUSING 6.51%
MO St Dev Fin Brd Multi Fam
Rev Quality Hill Pj Ser A(16) 5.60% 9/15/2028 AA 2,115 2,163,328
MO St Dev Fin Brd Solid Waste
Disp Rev P & G Paper Pj AMT 5.20% 3/15/2029 AA- 1,000 1,086,890
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Mtg AMT(12)(8) 6.22% 3/1/2026 AAA 2,300 2,365,734
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Mtg Rev AMT(13) 5.375% 9/1/2022 AAA 1,570 1,613,662
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Mtg Ser A AMT(12) 6.75% 6/1/2024 AAA 70 70,108
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Ser E-1 AMT(13) Zero Coupon 3/1/2029 AAA 1,580 392,551
Puerto Rico Hsg Fin Auth
Cap Fd Prog(20) 4.50% 12/1/2023 AA 2,500 2,525,250
--------------
TOTAL 10,217,523
--------------
LEASE 5.75%
Gladstone MO Ctfs Partn Ser A(2) 5.35% 6/15/2016 Aaa 1,095 1,209,449
Grandview MO Ctfs Partn(10) 5.00% 1/1/2027 Aaa 1,700 1,771,978
Kansas City MO Sch Dist Bldg
Ref Elem Sch Pj Ser B(10) 5.00% 2/1/2012 Aaa 1,090 1,221,574
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MISSOURI TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MO Dev Fin Brd Cultural Facs
Nelson Gallery Fndtn Ser A(15) 5.00% 12/1/2030 AAA $ 4,650 $ 4,832,466
--------------
TOTAL 9,035,467
--------------
MISCELLANEOUS 14.91%
BI State Dev Agy MO Met Dist
Metrolink Cross Cnty Pj-B(11) 5.00% 10/1/2032 AAA 6,500 6,769,100
Kansas City MO Muni Assistance Corp
Rev Leasehold-Ser 2001A(2) 5.00% 3/1/2019 AAA 1,500 1,602,015
Kansas City MO Muni
Assistance Corp Rev Ser A 5.125% 3/1/2019 A2 1,100 1,163,140
Kansas City MO Muni
Assistance Leasehold Bartle(15) 5.00% 4/15/2020 AAA 1,500 1,551,075
MO St Brd Pub Bldgs Spl Ser A 5.00% 10/15/2027 AA+ 2,800 2,931,796
MO Dev Fin Brd Cultural Facs
Nelson Gallery(15) 5.25% 12/1/2013 AAA 2,305 2,608,454
MO St Ctfs Partn Bonne Terre
Prison Pj Ser A(2) 5.15% 6/1/2018 AAA 1,015 1,082,964
MO St Dev Fin Brd Infra Fac
Rev Hartman Hrtge Ctr Ser A(2) 5.875% 4/1/2020 Aaa 1,000 1,136,260
Puerto Rico Pub Bldg Auth Rev
Ref-Govt Facs-Ser C 5.75% 7/1/2018 A- 1,000 1,163,610
St. Louis MO Mun Fin Corp
Lease Carnahan Courthouse-Ser A(10) 5.125% 2/15/2027 Aaa 1,500 1,570,515
St. Louis MO Mun Fin Corp
Lease Impt City Justice Ctr Ser A(2) 6.00% 2/15/2020 Aaa 760 888,508
St. Louis MO Ind Dev Auth Rev
Convention Ctr Hotel(2) Zero Coupon 7/15/2020 AAA 2,000 946,380
--------------
TOTAL 23,413,817
--------------
POWER 1.00%
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN 5.125% 7/1/2029 A- 1,500 1,570,125
--------------
PRE-REFUNDED 17.32%
Clay Cnty MO Pub Bldg Auth
Leasehold Rev(10) 7.00% 5/15/2014 AAA 1,000 1,006,800
MO Sch Brds Assoc Lease
Partn NIXA Reorg Sch Dist R-2(16) 5.40% 3/1/2020 AA 850 917,413
MO St Envr Impt & Enrg
St Revolv FD Ser B 7.20% 7/1/2016 Aaa 1,130 1,169,471
MO St Envr Impt & Enrg
St Revolving FD-D 5.90% 1/1/2019 Aaa 1,860 2,021,392
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MISSOURI TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MO St Envr Impt & Enrg
St Revolving FD-E 5.625% 7/1/2016 Aaa $ 630 $ 700,667
MO St Hlth & Ed Fac
Auth BJC Hlth Sys Ser A ETM 6.50% 5/15/2020 NR 4,900 5,024,901
MO St Hlth & Ed Fac
Auth St Louis Univ High Sch 6.35% 10/1/2014 A2 1,750 1,813,402
MO St Hlth & Ed Fac
Auth Washington Univ Ser A 6.00% 3/1/2030 Aaa 850 1,008,381
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM+ 9.589% 10/1/2040 Aaa 3,050 3,745,034
Puerto Rico Comwlth Ser A ETM 5.50% 10/1/2040 AAA 2,700 3,007,638
St Louis MO Mun Fin Corp
Lease Rev City Justice Ctr Ser A(2) 6.00% 2/15/2019 AAA 3,500 3,862,880
St. Louis MO Pkg Fac Rev ETM(15) 5.375% 12/15/2021 AAA 10 10,819
St. Louis MO Sch Dist(10) 6.00% 4/1/2012 AAA 645 646,567
University MO Univ Rev Sys Facs 5.80% 11/1/2027 AA 1,975 2,264,891
--------------
TOTAL 27,200,256
--------------
RESOURCE RECOVERY 1.72%
MO St Envr Impt & Enrg
Unrefunded Bal St Revolving B 7.20% 7/1/2016 Aaa 1,120 1,158,506
MO St Envr Impt & Enrg
Unrefunded Bal St Revolving D 5.625% 7/1/2016 Aaa 220 240,033
MO St Envr Impt & Enrg
Unrefunded Bal St Revolving E 5.90% 1/1/2019 Aaa 240 259,219
St. Louis MO Ind Dev Auth
Anheuser-Busch Pj AMT 5.875% 11/1/2026 A+ 1,005 1,035,713
--------------
TOTAL 2,693,471
--------------
TRANSPORTATION 12.25%
Columbia MO Spl Oblig Cap Impt 5.50% 2/1/2016 AA- 330 350,496
MO St Hwy & Trans Comm
St Rd Rev Ser A 5.00% 2/1/2022 AA 1,970 2,074,036
MO St Hwy & Trans Comm
St Rd Rev Ser A 5.25% 2/1/2020 AA 1,830 1,977,772
Puerto Rico Comwlth Hwy & Ser E(11) 5.50% 7/1/2013 AAA 750 879,780
Puerto Rico Comwlth Hwy & Ser E(11) 5.50% 7/1/2022 AAA 1,500 1,759,275
Puerto Rico Comwlth Hwy & Ser G(10) 5.25% 7/1/2014 AAA 2,500 2,855,400
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.675% 1/1/2010 NR 2,500 3,183,851
St. Louis MO Arpt Rev Airport
Dev Prog Ser A(15) 5.25% 7/1/2031 AAA 2,000 2,105,540
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
MISSOURI TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
St. Louis MO Arpt Rev Airport Ser A(15) 5.125% 7/1/2022 AAA $ 2,000 $ 2,110,480
St. Louis MO Arpt Rev Cap
Impt Prog-Ser A(15) 5.00% 7/1/2032 AAA 1,250 1,295,162
St. Louis MO Arpt Rev Lambert
Intl Ser B AMT(10) 5.25% 7/1/2027 AAA 625 642,825
--------------
TOTAL 19,234,617
--------------
WATER/SEWER 2.00%
St. Charles Cnty MO Pub Wtr
Supply Dist #2 Ctfs Partn(15) 5.125% 12/1/2027 Aaa 3,000 3,137,910
--------------
TOTAL MUNICIPAL BONDS (Cost $141,783,865) $ 151,129,182
==============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2004
<Table>
MUNICIPAL BONDS 97.98%
EDUCATION 15.32%
Higher Ed Student Assist Auth
NJ Student Loan Rev Ser A AMT(15) 6.15% 6/1/2019 AAA 790 851,225
NJ St Ed Fac Auth Rev
Princeton Ser H 5.25% 7/1/2022 AAA 2,560 2,727,706
NJ St Ed Fac Auth Rev
Princeton Ser H 5.25% 7/1/2026 AAA 2,350 2,482,728
NJ St Ed Fac Auth Rev
Princeton Ser H 5.375% 7/1/2024 AAA 2,550 2,740,281
NJ St Ed Fac Auth Rev
Wm Paterson Ser E(19) 5.00% 7/1/2027 AAA 2,500 2,607,825
NJ St Ed Facs Auth
Kean Univ Ser D(10) 5.00% 7/1/2033 AAA 2,500 2,608,850
NJ St Ed Facs Auth
Princeton Theological Seminary 5.00% 7/1/2026 AAA 2,500 2,620,450
NJ St Ed Facs Auth
Ser I Rowan(10) 5.125% 7/1/2030 AAA 2,650 2,790,264
Rutgers St Univ NJ Ctfs Partn(c)(2) 5.00% 1/01/2024 AAA 800 835,616
Rutgers St Univ NJ Ser A 5.20% 5/1/2027 AA 750 777,330
Rutgers St Univ NJ Ser B(10) 4.75% 5/1/2034 AAA 1,395 1,406,118
Univ Medicine & Dentist
NJ Ctfs Partn(2) 5.00% 4/15/2025 AAA 300 314,199
--------------
TOTAL 22,762,592
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION 13.42%
Chathams Dist NJ Brd Ed(15) 5.00% 1/15/2019 Aaa $ 1,020 $ 1,080,588
Chathams Dist NJ Brd Ed(15) 5.125% 1/15/2024 Aaa 595 624,268
Chathams Dist NJ Brd Ed(15) 5.25% 1/15/2026 Aaa 1,500 1,588,335
Millburn Township NJ Sch Dist 5.35% 7/15/2018 Aa1 1,050 1,231,818
Millburn Township NJ Sch Dist 5.35% 7/15/2019 Aa1 250 292,045
Montville Township NJ Fire
Dist No 23 5.25% 7/15/2016 A2 410 464,428
Morristown NJ(11) 6.50% 8/1/2019 AAA 3,440 3,734,086
NJ St Var Purp
Ref-Ser J(15)(14) 5.00% 7/15/2009 AAA 2,200 2,473,746
Ocean Cnty NJ Gen Impt 5.125% 9/1/2020 Aa1 1,800 1,936,854
Pohatcong Township NJ Sch Dist(11) 5.25% 7/15/2026 AAA 1,335 1,499,071
Puerto Rico Comwlth Pub Impt(11)(6) 4.50% 7/1/2023 AAA 1,000 1,011,330
Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 A- 1,840 1,913,710
Washington Township NJ Brd Ed(10) 5.00% 1/1/2027 Aaa 2,000 2,084,520
--------------
TOTAL 19,934,799
--------------
HEALTHCARE 8.98%
NJ Hlthcare Facs
Cap Health Sys Oblic Grp Ser A 5.375% 7/1/2033 Baa1 2,000 2,007,780
NJ Econ Dev Auth Rev Masonic
Charity Fndtn Pj 6.00% 6/1/2025 A+ 1,000 1,110,580
NJ Hlthcare Fac Fin Auth Rev
Bayonne Hosp(11) 6.25% 7/1/2012 AAA 1,370 1,413,018
NJ Hlthcare Fac Fin Auth Rev
Mtg Englewood Hosp(15)(8) 5.25% 8/1/2013 AAA 1,445 1,642,893
NJ Hlthcare Fac Fin Auth Rev
Robert Wood Johnson Univ Hosp 5.75% 7/1/2031 A+ 3,500 3,729,530
NJ Hlthcare Fac Fin Auth Rev
Spectrum For Living Ser B(8) 6.50% 2/1/2022 AAA 780 791,856
Puerto Rico Ind Tourist
Ed Med & Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2030 AA 1,000 1,118,890
Puerto Rico Ind Tourist
Ed Med Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2025 AA 415 465,617
Puerto Rico Ind Tourist
Ed Med Mutuo Oblig Grp Ser A(15) 6.25% 7/1/2024 AAA 1,000 1,055,060
--------------
TOTAL 13,335,224
--------------
HOUSING 1.80%
Middlesex Cnty NJ Impt Auth
Street Student HSG Pj Ser A 5.00% 8/15/2035 Baa1 1,000 992,110
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
40
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Hsg Fin Auth Cap
Fd Prog(20) 4.50% 12/1/2023 AA $ 1,500 $ 1,515,150
Virgin Islands Hsg Fin Auth
Sing Fam Rev Ser A AMT(12) 6.50% 3/1/2025 AAA 165 169,807
--------------
TOTAL 2,677,067
--------------
INDUSTRIAL 6.67%
NJ Eco Dev Auth
Amer Wtr Co Inc Ser B AMT(10) 5.375% 5/1/2032 AAA 5,000 5,238,150
NJ Eco Dev Auth
Middlesex Wtr Co Pj AMT(15) 5.35% 2/1/2038 AAA 2,500 2,603,725
NJ Eco Dev Auth
NJ Nat Gas Co Pj AMT(2) 5.00% 12/1/2038 AAA 2,000 2,058,540
--------------
TOTAL 9,900,415
--------------
LEASE 1.40%
Union Cnty Impt Auth Rev
Lease Madison Redev(11) 5.00% 3/1/2034 Aaa 2,000 2,077,080
--------------
MISCELLANEOUS 5.56%
Carteret NJ Brd Ed Ctfs Partn(15) 5.75% 1/15/2030 Aaa 80 90,350
Carteret NJ Brd Ed Ctfs Partn(15) 6.00% 1/15/2024 Aaa 430 501,066
Casino Reinvestment Dev Ath
NJ Ser A(11) 5.25% 10/1/2015 AAA 100 109,977
Hudson Cnty NJ Impt Auth
Hudson Regl Fire/Rescue Ser A(2) 5.625% 9/1/2019 Aaa 100 113,002
Middlesex Cnty NJ Impt Auth
Cnty-Gtd Open Space Tr Fd 5.25% 9/15/2022 AAA 1,910 2,064,978
Monmouth Cnty NJ Impt Auth
Rev Unrefunded Bal Govtl Ln(15) 6.40% 12/1/2009 AAA 195 205,561
NJ Eco Dev Auth Rev
Mun Rehab(2) 5.00% 4/1/2028 AAA 1,130 1,181,596
NJ Envr Infra 5.25% 9/1/2020 AAA 2,000 2,161,380
North Bergen Twp NJ Brd Ed
Ctfs Partn(11) 6.125% 12/15/2022 Aaa 1,185 1,424,133
Rahway NJ Ctfs Partn(15) 5.625% 2/15/2020 Aaa 365 413,304
--------------
TOTAL 8,265,347
--------------
POWER 4.23%
Brick Twp NJ Muni Util Auth(10) 5.00% 12/1/2025 Aaa 2,000 2,091,360
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN(15) 5.00% 7/1/2032 AAA 3,000 3,144,540
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN 5.125% 7/1/2029 A- $ 1,000 $ 1,046,750
--------------
TOTAL 6,282,650
--------------
PRE-REFUNDED 18.46%
Essex Cnty NJ Impt Auth Rev
Orange Muni Util & Lease(15) 6.80% 7/1/2014 AAA 1,710 1,865,114
LaFayette Yard NJ Cmnty Dev(15) 5.625% 4/1/2021 Aaa 200 234,216
Monmouth Cnty NJ Impt Auth
Rev Govtl Ln(15) 6.40% 12/1/2009 AAA 880 929,051
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM+ 9.589% 10/1/2040 Aaa 1,000 1,227,880
NJ St Ed Fac Auth Rev
Princeton Ser B 5.125% 7/1/2019 AAA 355 402,343
NJ St Ed Fac Auth Rev
Princeton Ser H 5.25% 7/1/2017 AAA 700 800,968
NJ St Hwy Auth Garden
St Pkwy Gen Rev(10) 5.75% 1/1/2015 AAA 200 234,284
NJ Bldg Auth St Bldg Rev 5.375% 6/15/2019 AA- 450 514,998
NJ Bldg Auth St Bldg Ser A(11) 5.25% 12/15/2019 AAA 1,000 1,153,650
NJ Hlthcare Fac Fin Auth Rev
Bayonne Hosp Oblig(11) 6.25% 7/1/2012 AAA 230 237,516
NJ St Transn Tr Fd Auth
Transn Sys Ser B 6.00% 6/15/2019 AA- 6,500 7,687,225
NJ St Transn Tr Fd
Prerefunded Transn Sys B(15) 6.00% 12/15/2014 AAA 1,000 1,207,000
Pohatcong Township NJ Sch Dist(11) 5.95% 7/15/2023 AAA 650 728,650
Pohatcong Township NJ Sch Dist(11) 5.95% 7/15/2026 AAA 250 280,250
Puerto Rico Comwlth Pub Impt RIBs 10.393% 7/1/2029 A- 750 854,580
Puerto Rico Elec Pwr Auth
Ser T RIBs(11) 11.472% 7/1/2018 AAA 7,000 7,455,980
South Brunswick Township NJ(10) 5.625% 12/1/2023 AAA 45 52,631
Summit NJ 5.70% 6/1/2020 AAA 325 376,708
Trenton NJ Pkg Auth Pkg Rev(10) 6.00% 4/1/2017 Aaa 1,000 1,183,170
--------------
TOTAL 27,426,214
--------------
RESOURCE RECOVERY 0.36%
Cape May Cnty NJ Ind Poll
Ctrl Fin Auth Rev Atlan City Ser B(15) 7.00% 11/1/2029 AAA 500 526,625
--------------
TRANSPORTATION 20.14%
Delaware River & Bay Auth Rev(15) 5.00% 1/1/2033 AAA 1,000 1,035,000
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
42
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Delaware River Port Auth PA &
NJ Ref Port Dist Pj Ser B(11) 5.10% 1/1/2021 AAA $ 1,435 $ 1,531,202
Delaware River Port Auth PA &
NJ Ref Port Dist Pj Ser B(11) 5.20% 1/1/2025 AAA 1,700 1,802,000
Delaware River Port Auth PA &
NJ Rev(10) 5.50% 1/1/2026 AAA 1,000 1,071,460
NJ St Tpk Auth Rev Ser A 5.50% 1/1/2027 A 3,000 3,195,270
NJ St Tpk Auth Rev Ser A(15) 5.50% 1/1/2030 AAA 1,500 1,654,665
Port Auth NY & NJ(11) 5.00% 4/15/2032 AAA 5,125 5,363,620
Port Auth NY & NJ Cons 109th Ser 5.375% 1/15/2032 AA- 500 526,945
Port Auth NY & NJ Cons 119th
Ser AMT(10) 5.50% 9/15/2019 AAA 150 161,681
Port Auth NY & NJ Cons 125th Ser(11) 5.00% 10/15/2027 AAA 5,000 5,250,100
Puerto Rico Comwlth Hwy &
Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 1,000 1,049,940
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.675% 1/1/2010 NR 2,750 3,502,235
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(11)(6) 10.61% 7/1/2026 Aaa 500 566,100
Puerto Rico Comwlth Hwy &
Transn Auth Ser B(15)(14) 6.00% 7/1/2026 AAA 3,015 3,215,075
--------------
TOTAL 29,925,293
--------------
WATER/SEWER 1.64%
Middlesex Cnty NJ Impt Auth
Util Sys Rev Cap Apprec Ser B(2) Zero Coupon 9/1/2023 AAA 3,000 1,177,020
North Hudson Swr Auth
NJ Rev Ser C(15) 5.00% 8/1/2022 Aaa 1,025 1,069,598
Ocean Twp NJ Swr Auth Ref Ser B(10) 5.25% 12/1/2011 Aaa 170 195,607
--------------
TOTAL 2,442,225
--------------
TOTAL MUNICIPAL BONDS (Cost $134,967,199) 145,555,531
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 0.74%
MONEY MARKET MUTUAL FUND 0.74%
Dreyfus NJ Muni Cash Management (Cost $1,101,125) 1,101 1,101,125
--------------
TOTAL INVESTMENTS 98.72% (Cost $136,068,324) $ 146,656,656
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
NEW YORK TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 98.55%
EDUCATION 7.70%
Geneva NY Indl Dev Agy Civic
Fac Rev Hobart & William Smith(10) 4.25% 2/1/2017 AAA $ 370 $ 379,294
Hempstead Town NY Ind Dev Agy
Civic Fac Rev Hofstra Univ Pj(15) 5.80% 7/1/2015 AAA 750 828,345
New York NY City Ind Dev Agy
NY Institute of Tech(15) 5.25% 3/1/2023 AAA 100 107,346
NY St Dorm Auth Lease
Rev Court Fac Zero Coupon 8/1/2021 AA+ 3,600 1,648,584
NY St Dorm Auth Rev
4201 Schools Program 6.25% 7/1/2020 AA- 1,685 2,004,139
NY St Dorm Auth Rev
Colgate Univ(15) 6.00% 7/1/2016 AAA 1,000 1,214,750
NY St Dorm Auth Rev New
York Univ Ser A(2) 5.75% 7/1/2015 AAA 2,000 2,380,160
NY St Dorm Auth Rev Pace Univ(15) 6.00% 7/1/2029 AAA 1,610 1,881,221
NY St Dorm Auth Rev
Pratt Institute(16) 6.00% 7/1/2024 AA 1,000 1,124,040
NY St Dorm Auth Rev
Pratt Institute(16) 6.00% 7/1/2028 AA 2,000 2,251,140
NY St Dorm Auth Rev Sp
Act Sch Dist Pj(15) 6.00% 7/1/2016 AAA 1,400 1,505,756
NY St Dorm Auth Rev
Upstate Cmnty Colleges Ser A(11) 6.00% 7/1/2015 AAA 300 355,785
NY St Dorm Auth Rev
Upstate Cmnty Colleges(c) 5.125% 7/1/2021 AA- 1,000 1,067,680
NY St Dorm Auth Rev
Upstate Cmnty Colleges(c) 5.125% 7/1/2022 AA- 1,000 1,060,030
Rensselaer Cnty NY Ind Dev
Polytech Inst Ser B(2)(17) 5.50% 8/1/2022 AAA 200 223,402
Schenectady NY Ind Dev Agy
Civic Fac Rev Union College(2) 5.625% 7/1/2031 Aaa 1,500 1,666,290
St Lawrence Cnty NY Ind Civic
Fac Rev Clarkson Univ Pj 5.125% 7/1/2021 A3 250 261,595
--------------
TOTAL 19,959,557
--------------
GENERAL OBLIGATION 9.98%
Bethlehem NY AMT(15) 7.20% 3/1/2022 AAA 1,080 1,153,278
Erie Cnty NY Indl Dev Agy
Sch Fac Rev City of Buffalo Pj(11) 5.75% 5/1/2023 AAA 1,250 1,419,900
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
44
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
New York NY 5.625% 3/15/2020 A $ 1,000 $ 1,090,450
New York NY Ref - Ser B 5.75% 8/1/2016 A 1,000 1,118,280
New York NY Ser C(11) 5.75% 3/15/2027 AAA 5,000 5,641,150
New York NY Ser E 5.25% 8/1/2014 A 1,000 1,095,600
New York NY City Transitional Fin
Auth Future Tax Secd-Ser D(15) 5.00% 2/1/2022 AAA 5,000 5,284,500
Puerto Rico Comwlth Pub Impt 5.25% 7/1/2018 A- 2,000 2,220,940
Puerto Rico Comwlth Pub Impt
Pub Impt Ser A 5.25% 7/1/2024 A- 1,500 1,598,175
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- 1,500 1,547,925
Puerto Rico Comwlth Pub Impt Ser A(10) 5.00% 7/1/2032 AAA 1,250 1,309,200
Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 1,645 1,760,232
Puerto Rico Comwlth Pub Impt
Unrefunded-Pub Impt(15)(14) 5.00% 7/1/2028 AAA 605 631,765
--------------
TOTAL 25,871,395
--------------
HEALTHCARE 6.72%
Cortland Cnty NY Ind Dev Agy
Cortland Mem Hosp Pj(16) 5.625% 7/1/2024 AA 1,750 1,898,803
New York NY City Hlth & Hosp
Corp Rev Health Sys-Ser A(2) 5.25% 2/15/2022 AAA 3,000 3,214,860
New York NY City Ind Dev Agy
Rev Harbor House Pj A(12) 5.875% 5/20/2044 AA+ 610 683,078
NY St Dorm Auth Rev
Insd NY St Rehab Assn Ser A(2) 5.50% 7/1/2016 AAA 935 1,067,518
NY St Dorm Auth Rev
Lenox Hill Hosp Oblig Group 5.375% 7/1/2020 A3 1,000 1,055,380
NY St Dorm Auth Rev
Mental Hlth Svc Fac(15)(14) 6.00% 8/15/2012 AAA 1,460 1,735,341
NY St Dorm Auth Rev Mtg
Nursing Home A(15)(8) 5.40% 2/1/2031 AAA 300 318,339
NY St Dorm Auth Rev Mtg
Nursing Home A(15)(8) 5.50% 8/1/2030 AAA 1,000 1,099,610
NY St Dorm Auth Rev Mtg
Nursing Home A(15)(8) 5.50% 8/1/2038 AAA 1,000 1,096,660
NY St Dorm Auth Rev Utd
Cerebral Palsy Aff #1-A(2) 5.75% 7/1/2018 AAA 1,000 1,157,170
NY St Dorm Auth Rev
Mem Sloan Kettering Ctr Ser 1(15) 5.00% 7/1/2024 AAA 2,500 2,612,700
NY St Dorm Auth Rev
Ref-NY St Dept of Hlth 5.25% 7/1/2023 AA- 1,000 1,056,710
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
NY St Dorm Auth Rev
Unrefunded Mental D(15)(14) 6.00% 8/15/2021 AAA $ 150 $ 168,043
NY St Dorm Auth Rev
Unrefunded Mental Hlth Svcs(15) 6.00% 2/15/2025 AAA 115 128,303
NY St Dorm Auth Rev
Unrefunded Mental Hlth Svcs-B(15) 6.00% 2/15/2030 AAA 115 131,749
--------------
TOTAL 17,424,264
--------------
HOUSING 2.27%
New York City Hsg Dev Corp
Multi Fam Hsg Rev Ser A AMT 5.50% 11/1/2034 AA 1,500 1,547,250
NY St Dorm Auth Lease
Rev Court Fac Zero Coupon 8/1/2022 AA+ 260 111,995
NY St Dorm Auth Lease
Rev Court Facs Ser A 5.50% 5/15/2020 A 1,180 1,297,894
NY St Dorm Auth Rev
Insd Jewish Brd Fam & Children(2) 5.00% 7/1/2023 AAA 500 526,420
NY St Dorm Auth Rev
Ref-Dept Health(c) 5.00% 7/1/2022 AA- 1,000 1,041,430
NY St Dorm Auth Rev
Ref-Dept Health(c) 5.00% 7/1/2023 AA- 1,000 1,035,610
NY St Mtg Agy Rev Home
Owner Mtg Ser 70 5.40% 4/1/2022 Aa1 70 72,133
NY St Mtg Agy Rev
Homeowner Mtg Ser 111 AMT 4.55% 4/1/2023 Aa1 250 247,490
--------------
TOTAL 5,880,222
--------------
INDUSTRIAL 0.44%
NY Ind Dev Agy Pkg
Royal Charter Properties, Inc.(11) 5.75% 12/15/2029 AAA 1,000 1,131,740
--------------
LEASE 2.47%
NY St Urban Dev Corp Rev St Fac 5.70% 4/1/2020 AA- 4,150 4,806,323
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.75% 8/1/2030 BBB+ 1,500 1,606,125
--------------
TOTAL 6,412,448
--------------
MISCELLANEOUS 3.53%
New York City Transitional
Fin Auth Rev Ser A 5.00% 11/15/2026 AA+ 730 758,959
New York NY City Tr Cultr Res
Rev Museum of American Art(1) 6.00% 7/1/2022 A 500 552,190
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Pub Bldg Auth Rev Govt Fac 5.00% 7/1/2026 A- $ 2,000 $ 2,065,280
Puerto Rico Pub Bldg Auth Rev
Govt Fac Ser D 5.25% 7/1/2027 A- 1,000 1,059,560
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.50% 8/1/2029 BBB+ 2,320 2,519,172
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.70% 8/1/2025 BBB+ 2,000 2,202,180
--------------
TOTAL 9,157,341
--------------
POWER 6.15%
NY St Enrg Res & Dev Auth Fac
Rev Con Edison Inc Ser A AMT(15)(14) 7.125% 12/1/2029 AAA 2,500 2,638,950
NY St Enrg Res & Dev Auth Gas
Fac Rev Bklyn Ser B RIBs AMT 12.504% 7/1/2026 A+ 4,000 4,907,360
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN(15) 5.00% 7/1/2032 AAA 1,500 1,572,270
Puerto Rico Elec Pwr Auth Rev Ser II 5.25% 7/1/2031 A- 3,625 3,850,946
Puerto Rico Elec Pwr Auth Rev Ser X 5.50% 7/1/2025 A- 2,915 2,968,928
--------------
TOTAL 15,938,454
--------------
PRE-REFUNDED 31.35%
Albany NY Muni Wtr Fin Auth
Wtr & Swr Sys Rev Ser A(10) 6.375% 12/1/2017 AAA 650 793,468
Metropolitan Transn Auth NY
Commuter Fac Rev Ser A(10) 6.00% 7/1/2016 AAA 2,000 2,322,620
Metropolitan Transn Auth NY
Commuter Fac Rev Ser A(10) 6.00% 7/1/2021 AAA 5,000 5,607,950
Metropolitan Transn Auth NY
Commuter Fac Rev Ser A(10) 6.10% 7/1/2026 AAA 2,000 2,247,580
Metropolitan Transn Auth NY
Dedicated Tax Fd Ser A(10) 4.75% 4/1/2028 AAA 2,500 2,786,000
Metropolitan Transn Auth NY
Dedicated Tax Fd Ser A(10) 6.00% 4/1/2030 AAA 3,800 4,507,598
Metropolitan Transn Auth NY
Svc Cntrct Transn Fac Ser O ETM 5.75% 7/1/2008 AAA 1,000 1,151,210
Metropolitan Transn Auth NY
Transn Fac Rev Svc Cntrct Ser R 5.50% 7/1/2017 AAA 1,000 1,181,400
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM+ 9.589% 10/1/2040 Aaa 2,000 2,455,760
New York City Muni Wtr Fin
Wtr & Sew Sys Rev Ser B 6.00% 6/15/2033 AA 3,360 4,023,264
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
New York City Transitional
Fin Auth Rev Future Tax 5.50% 5/1/2025 AA+ $ 555 $ 608,918
New York City Transitional
Fin Auth Rev Future Tax 2nd Ser A 6.00% 8/15/2029 AA+ 200 238,328
New York City Transitional
Fin Auth Rev Future Tax 2nd Ser B 6.00% 11/15/2024 AA+ 950 1,138,309
New York City Transitional
Fin Auth Rev Future Tax 2nd Ser B 6.00% 11/15/2029 AA+ 2,000 2,396,440
New York City Transitional
Fin Future Tax Secd C 5.50% 5/1/2025 AA+ 445 516,761
New York NY Ser A(10)(17) 6.00% 5/15/2030 AAA 5,000 5,740,450
NY St Dorm Auth Lease
Rev St Univ Dorm Facs Ser A 5.50% 5/15/2026 AA- 75 82,913
NY St Dorm Auth Lease St Univ 5.375% 7/1/2022 AA- 1,000 1,159,520
NY St Dorm Auth Lease
St Univ Dorm Facs Ser A 6.00% 7/1/2030 AA- 3,500 4,195,205
NY St Dorm Auth Lease
St Univ Dorm Facs Ser A 6.25% 7/1/2020 AA- 1,250 1,512,125
NY St Dorm Auth Rev
City Univ 3rd Gen Res Ser 2(15) 6.875% 7/1/2014 AAA 5,650 5,843,004
NY St Dorm Auth Rev City
Univ Sys Cons 4th Gen A RIBs 5.50% 7/1/2023 AA- 1,215 1,418,148
NY St Dorm Auth Rev Ser B(11) 5.75% 5/15/2017 AAA 395 467,755
NY St Dorm Auth Rev
Upstate Cmnty Colleges Ser A 6.20% 7/1/2015 AAA 1,000 1,083,990
NY St Dorm Auth Rev
Mental D(15)(14) 6.00% 8/15/2021 AAA 850 968,856
NY St Dorm Auth Rev
Mental Hlth Svcs(15) 6.00% 2/15/2025 AAA 885 1,046,512
NY St Dorm Auth Rev
Mental Hlth Svcs-B(15) 6.00% 2/15/2030 AAA 885 1,046,512
NY St Envr Fac Poll Ctrl
Rev St Wtr Ser E 6.875% 6/15/2014 AAA 2,795 2,869,151
NY St Envr Fac Corp
St Clean Wtr & Drinking 6.00% 6/15/2019 AAA 80 94,197
Puerto Rico Comwlth 5.375% 7/1/2025 A- 1,640 1,828,551
Puerto Rico Comwlth Aqueduct &
Swr Auth Rev ETM 10.25% 7/1/2009 AAA 670 832,080
Puerto Rico Comwlth Hwy &
Prerefunded-Ser B(15) 5.875% 7/1/2035 NR 265 315,748
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.50% 7/1/2027 A 2,000 2,447,920
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
48
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2004
<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 $ 1,000 $ 1,104,580
Puerto Rico Comwlth Pub Impt(15) 5.00% 7/1/2024 AAA 1,000 1,130,070
Puerto Rico Comwlth Pub Impt(15) 5.75% 7/1/2026 AAA 3,000 3,499,500
Puerto Rico Comwlth Pub Impt(15)(14) 5.00% 7/1/2028 AAA 1,130 1,276,979
Puerto Rico Comwlth Pub Impt RIBs 10.393% 7/1/2029 A- 1,000 1,139,440
Puerto Rico Elec Pwr Auth Rev Ser X 6.00% 7/1/2015 A- 2,375 2,568,658
Puerto Rico Elec Pwr Auth Ser T RIBs(11) 11.472% 7/1/2018 AAA 3,500 3,727,990
Tompkins Cnty NY Ind Dev Agy
Civic Fac Cornell Univ Lake 5.625% 7/1/2020 AA+ 115 135,380
Tompkins Cnty NY Ind Dev Agy
Civic Fac Cornell Univ Lake 5.75% 7/1/2030 AA+ 1,500 1,776,540
--------------
TOTAL 81,287,380
--------------
RESOURCE RECOVERY 5.77%
NY St Enrg Res & Dev Auth
Poll Ctrl Rev Niagara Mohawk Ser A(10) 7.20% 7/1/2029 AAA 11,750 12,153,965
NY St Enviro Fac Poll Ctrl
Rev St Wtr Revolving Fd Ser A 7.50% 6/15/2012 AAA 780 784,446
NY St Enviro Fac Poll Ctrl
Rev St Wtr Ser E 6.875% 6/15/2014 AAA 1,985 2,036,789
--------------
TOTAL 14,975,200
--------------
SPECIAL TAX 0.76%
New York City Transitional
Fin Unrefunded-Future Tax Secd-C 5.00% 5/1/2029 AA+ 1,905 1,969,027
--------------
TRANSPORTATION 18.98%
Metropolitan Transn Auth NY
Rev Ref-Transn-Ser E 5.25% 11/15/2031 A 2,730 2,870,731
Metropolitan Transn Auth NY Ser B 5.25% 1/1/2031 AA- 1,700 1,784,456
New York NY City Transn Auth RIBs(2) 10.36% 1/1/2030 Aaa 5,000 6,435,500
Niagara NY Frontier Auth Arpt
Buffalo Niagara Intl Arpt Ser B(15) 5.50% 4/1/2019 AAA 690 764,486
NY St Twy Auth St Pers Transn - Ser A 2.25% 3/15/2005 AA 4,000 4,042,720
Port Auth NY & NJ Cons 106th Ser AMT 6.00% 7/1/2015 AA- 350 383,110
Port Auth NY & NJ Cons- 132nd Ser 5.00% 9/1/2029 AA- 2,310 2,405,773
Port Auth NY & NJ Cons 93rd Ser 6.125% 6/1/2094 AA- 7,500 8,816,850
Port Auth NY & NJ Sp Oblig
Rev 5th Instllmnt Spl Pj Ser 4 AMT 6.75% 10/1/2019 BB(a) 2,970 3,065,901
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
NEW YORK TAX-FREE FUND MARCH 31, 2004
<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 $ 6,000 $ 6,299,640
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.675% 1/1/2010 NR 2,000 2,547,080
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser D 5.75% 7/1/2041 A 2,000 2,276,580
Puerto Rico Comwlth Hwy &
Transn Auth Sub P R St Infra 5.00% 7/1/2028 A- 1,000 1,024,680
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser G 5.00% 7/1/2033 A 2,000 2,062,560
Puerto Rico Comwlth Hwy &
Unrefunded Balance-Ser B(15) 5.875% 7/1/2035 NR 485 568,711
Puerto Rico Comwlth Hwy
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A 3,500 3,861,095
--------------
TOTAL 49,209,873
--------------
WATER/SEWER 2.43%
Buffalo NY Muni Wtr Fin Auth
Wtr Sys Rev(10) 5.75% 7/1/2021 AAA 500 551,685
Buffalo NY Muni Wtr Fin Auth
Wtr Sys Rev(11) 6.00% 7/1/2029 AAA 500 576,995
New York City Muni Wtr Fin Ser E 5.00% 6/15/2034 AA 1,000 1,036,480
New York City Muni Wtr Fin
Unrefunded Balance Ser B 6.00% 6/15/2033 AA 1,470 1,727,015
NY St Envr Fac Corp
St Clean Wtr & Drinking 6.00% 6/15/2019 AAA 1,420 1,646,376
Upper Mohawk NY Regl Wtr Fin
Auth NY Wtr Sys Rev(2) 5.75% 4/1/2020 Aaa 650 748,891
--------------
TOTAL 6,287,442
--------------
TOTAL MUNICIPAL BONDS (Cost $235,670,848) 255,504,343
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 2.23%
MONEY MARKET MUTUAL FUND 2.23%
Dreyfus New York Muni Cash Management (Cost $5,771,208) 5,771 5,771,208
--------------
TOTAL INVESTMENTS 100.78% (Cost $241,442,056) $ 261,275,551
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
50
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
TEXAS TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 98.73%
EDUCATION 7.54%
Houston TX Higher Ed Fin Corp Rice Univ 5.375% 11/15/2029 AAA $ 1,000 $ 1,059,890
Raven Hills TX Higher Ed Corp
Cardinal Vlg LLC Lamar Univ(15) 5.50% 8/1/2028 Aaa 1,000 1,085,700
Rockwall TX Indpt Sch Dist
Sch Bldg PSF GTD 5.25% 2/15/2029 AAA 3,000 3,171,750
Southwest Higher Ed Auth Inc
Southern Methodist Univ(2) 5.125% 10/1/2032 AAA 750 763,523
--------------
TOTAL 6,080,863
--------------
GENERAL OBLIGATION 34.24%
Azle TX Indpt Sch Dist Ser A PSF GTD 6.00% 2/15/2022 Aaa 250 250,815
Blanco TX Ctfs Oblig(19) 5.50% 8/15/2027 AAA 665 716,152
Dallas Cnty TX Ref & Impt Ser A 5.00% 8/15/2020 AAA 250 265,138
Dallas TX Indpt Sch Dist Ref PSF GTD 5.00% 2/15/2021 AAA 300 316,530
Gainesville TX Hosp Dist(15) 5.375% 8/15/2032 Aaa 1,000 1,058,110
Gregory Portland TX Indpt Sch
Dist PSF GTD 5.50% 8/15/2020 AAA 1,075 1,204,419
Harris Cnty TX Ctfs Oblig 5.00% 8/15/2019 AA+ 100 106,055
Katy TX Indpt Sch Dist Ltd Tax PSF GTD 6.125% 2/15/2032 AAA 1,000 1,148,620
Laredo TX Indpt Sch Dist PSF GTD 5.25% 8/1/2024 AAA 1,000 1,048,090
Mansfield TX Indpt Sch Dist PSF GTD 5.25% 2/15/2023 AAA 1,000 1,061,360
Pearland TX Indpt Sch Dist Bd
Ser A PSF GTD 5.875% 2/15/2019 AAA 1,000 1,151,600
Pearland TX Indpt Sch Dist PSF GTD 5.125% 2/15/2022 AAA 1,500 1,564,380
Pflugerville TX Indpt Sch Dist PSF GTD 5.00% 8/15/2026 AAA 1,000 1,032,880
Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 A- 1,000 1,040,060
San Antonio TX Indpt Sch Dist PSF GTD 5.50% 8/15/2024 AAA 1,000 1,094,390
Socorro TX Indpt Sch Dist Ref PSF GTD 6.00% 2/15/2015 AAA 920 1,018,017
TX St Ser B RIBs 11.00% 9/30/2011 Aa1 5,500 7,686,525
TX St Wtr Dev Brd 7.15% 8/1/2035 Aa1 1,600 1,630,160
TX St Wtr Fin Tax & Rev Antic Notes 2.00% 8/31/2004 SP-1+ 1,500 1,506,345
United Indpt Sch Dist TX PSF GTD 5.125% 8/15/2026 AAA 1,000 1,048,780
Webster TX Ctfs Oblig Ser A(11) 6.00% 3/1/2017 AAA 1,440 1,680,638
--------------
TOTAL 27,629,064
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
TEXAS TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE 5.01%
Harris Cnty TX Hlth Fac Dev
St. Lukes Episcopal Hosp Ser A 5.375% 2/15/2026 AA- $ 1,000 $ 1,030,240
Harris Cnty TX Hlth Fac Mem
Hermann Hlthcare Ser A 6.375% 6/1/2029 A 1,750 1,994,860
Puerto Rico Ind Tourist Ed
Med Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2025 AA 910 1,020,993
--------------
TOTAL 4,046,093
--------------
INDUSTRIAL 13.69%
Cass Cnty TX Ind Dev Corp
Envr Impt Rev Ser A AMT 6.00% 9/1/2025 BBB 1,000 1,047,620
Orange Cnty TX Nav & Port
Dist Ind Dev Rev North Star Steel 6.375% 2/1/2017 A+ 2,400 2,593,320
Texas City TX Ind Dev Corp
Marine Term Rev Arco Pipe Line 7.375% 10/1/2020 AA+ 5,500 7,404,320
--------------
TOTAL 11,045,260
--------------
LEASE 1.33%
Harris Cnty Houston TX Sports
Auth Rev Sr Lien Ser G(15) 5.25% 11/15/2021 AAA 1,000 1,072,470
--------------
POWER 3.02%
Fort Bend Cnty TX Muni Util Dist #25(15) 6.00% 10/1/2028 AAA 2,170 2,440,794
--------------
PRE-REFUNDED 14.31%
Austin TX Arpt Sys Rev 2003
Prior Lien AMT(15) 6.125% 11/15/2025 AAA 415 455,296
Austin TX Indpt Sch Dist PSF GTD 5.75% 8/1/2015 AAA 500 549,515
Burleson TX Indpt Sch Dist PSF GTD 6.75% 8/1/2024 AAA 2,000 2,243,600
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM+ 9.589% 10/1/2040 Aaa 500 613,940
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.00% 7/1/2031 A 1,980 2,366,991
Puerto Rico Comwlth Pub Impt RIBS(15) 10.11% 7/1/2026 Aaa 500 666,500
San Antonio TX Indpt Sch Dist PSF GTD 5.75% 8/15/2015 AAA 1,000 1,167,550
University TX Univ Rev Fin Sys Ser A 5.375% 8/15/2017 AAA 3,030 3,480,834
--------------
TOTAL 11,544,226
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
52
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
TEXAS TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
RESOURCE RECOVERY 4.72%
Gulf Coast Waste Disp Auth TX
Sew & Solid Waste Disp Rev AMT 5.90% 4/1/2036 A+ $ 1,500 $ 1,598,175
Harris Cnty TX Ind Dev Corp
Marine Term & Wtr Poll Ctrl 6.625% 2/1/2024 BBB+ 1,100 1,132,164
Red River Auth TX Poll Ctrl AMT 6.70% 11/1/2030 BBB 1,000 1,079,030
--------------
TOTAL 3,809,369
--------------
TRANSPORTATION 6.90%
Austin TX Arpt Sys Rev Unrefunded
Bal 2003 Prior A AMT(15) 6.125% 11/15/2025 AAA 2,085 2,264,164
Houston TX Arpt Sys Rev Sub
Lien Ser B(11) 5.50% 7/1/2030 AAA 1,000 1,079,740
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser C 6.00% 7/1/2029 A 1,000 1,147,020
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(11)(6) 10.61% 7/1/2026 Aaa 950 1,075,590
--------------
TOTAL 5,566,514
--------------
WATER/SEWER 7.97%
Dallas TX Wtr Wks & Swr Sys Rev Ref 5.00% 10/1/2012 AA+ 750 827,385
El Paso TX Wtr & Swr Rev Ref &
Impt Ser A(11) 5.25% 3/1/2027 AAA 1,000 1,055,510
San Antonio TX Wtr Rev Ref Sys(11) 5.00% 5/15/2028 AAA 1,000 1,032,240
Upper Trinity Regl Wtr Dist
TX Wtr Rev Sys Ser 4(10) 6.00% 8/1/2026 AAA 3,025 3,515,564
--------------
TOTAL 6,430,699
--------------
TOTAL MUNICIPAL BONDS (Cost $70,930,200) 79,665,352
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 0.15%
MONEY MARKET MUTUAL FUND 0.15%
Dreyfus Municipal Cash Management Plus (Cost $123,050) 123 123,050
--------------
TOTAL INVESTMENTS 98.88% (Cost $71,053,250) $ 79,788,402
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
WASHINGTON TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 98.16%
EDUCATION 9.77%
Clark Cnty WA Sch Dist No 114
Evergreen(15) 5.00% 12/1/2021 Aaa $ 1,000 $ 1,062,980
Univ WA Ed Resh Rev Roosevelt Pj(15)(14) 5.375% 6/1/2029 AAA 1,100 1,155,132
Univ WA Rev Student Fac Fee(11) 5.50% 6/1/2019 AAA 810 904,559
WA St Higher Ed Fac
Auth Rev Gonzaga Univ Pj(15) 4.75% 4/1/2022 AAA 1,000 1,012,310
Western WA Univ Rev Student Rec Fee(15) 5.00% 5/1/2033 AAA 900 926,460
--------------
TOTAL 5,061,441
--------------
GENERAL OBLIGATION 24.57%
Bremerton WA(2) 5.25% 12/1/2027 Aaa 1,440 1,520,856
King Cnty WA Sch Dist #405 Bellevue(10) 5.00% 12/1/2020 AAA 2,000 2,119,460
King Cnty WA Sch Dist #414
Lake Washington(11)(6) 5.50% 12/1/2019 AAA 1,000 1,126,000
King Cnty WA Ser B 4.50% 1/1/2024 AA+ 320 319,990
King Cnty WA Ser B(15) 5.00% 1/1/2030 AAA 1,000 1,022,940
Port Seattle WA Ser B AMT 5.75% 12/1/2025 AA+ 750 819,120
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2033 A- 1,500 1,546,920
Puerto Rico Pub Fin Corp
Comwlth App Ser A(2) 5.125% 6/1/2024 AAA 750 838,215
Thurston & Pierce Cntys WA
Cmnty Schs Yelm(11) 5.25% 12/1/2017 Aaa 1,000 1,103,860
WA St Ser B & NT-7 6.25% 6/1/2010 Aa1 1,000 1,191,290
WA St Ser E Motor Veh Tax(2) 5.00% 1/1/2029 AAA 1,080 1,120,403
--------------
TOTAL 12,729,054
--------------
HEALTHCARE 2.16%
Puerto Rico Ind Tourist Ed
Med & Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2030 AA 1,000 1,118,890
--------------
HOUSING 1.51%
Skagit Cnty WA Hsg Auth Low
Income Hsg Assist Rev Mtg Ln(12) 7.00% 6/20/2035 AAA 747 783,678
--------------
MISCELLANEOUS 3.13%
Bellevue WA Convention Ctr
Auth Sp Oblig Rev(15) Zero Coupon 2/1/2024 AAA 1,400 507,038
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
54
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
WASHINGTON TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Spokane WA Pub Fac Dist Hotel
Motel & Sales Use Tax(15) 5.75% 12/1/2028 AAA $ 1,000 $ 1,116,040
--------------
TOTAL 1,623,078
--------------
POWER 16.71%
Chelan Cnty WA Pub Util Dist
#1 Cons Rev Ser A AMT(15) 6.40% 7/1/2017 AAA 1,000 1,136,660
Clark Cnty WA Pub Util Dist #1 Rev(11) 5.125% 1/1/2020 AAA 400 422,216
Douglas Cnty WA Pub Util Dist
#1 Wells Hydro 8.75% 9/1/2018 AA 350 422,775
Douglas Cnty WA Pub Util Dist
#1 Wells Hydro 2 Tier Ser B(2) 8.75% 9/1/2006 AAA 2,085 2,261,433
Energy Northwest WA Wind Proj Rev(2) 5.00% 7/1/2023 AAA 1,000 1,042,430
Grant Cnty WA Pub Util Dist
#002 Elec Rev Ser H(11) 5.00% 1/1/2022 AAA 1,000 1,024,070
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN 5.125% 7/1/2029 A- 1,500 1,570,125
Seattle WA Muni Lt & Pwr Rev Ser A(15) 5.625% 9/1/2015 AAA 720 775,037
--------------
TOTAL 8,654,746
--------------
PRE-REFUNDED 24.15%
Douglas Cnty WA Pub Util Dist
#1 Wells Hydro 8.75% 9/1/2018 Aaa 150 183,991
Mount Vernon WA(2) 6.85% 12/1/2014 AAA 1,285 1,334,845
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM+ 9.589% 10/1/2040 Aaa 1,000 1,227,880
Ocean Shores WA Wtr & Swr(11) 5.50% 12/1/2021 Aaa 1,000 1,161,970
Port Seattle WA Spl Fac Rev
AMT Ser C(15) 6.00% 9/1/2029 AAA 915 1,079,993
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.00% 7/1/2031 A 1,000 1,195,450
Puerto Rico Comwlth Pub Impt RIBs 10.393% 7/1/2029 A- 1,000 1,139,440
Renton WA Wtr & Swr Rev 6.55% 11/1/2013 A1 1,000 1,032,170
Vancouver WA Ltd Tax(2) 5.50% 12/1/2025 AAA 1,255 1,466,041
Vancouver WA Wtr & Swr Rev(10) 6.00% 6/1/2020 AAA 1,000 1,173,560
WA St Higher Ed Fac
Auth Rev Whitworth College(5) 7.00% 10/1/2015 AAA 250 257,423
WA St Ser A 5.75% 9/1/2019 Aa1 250 254,895
WA St Ser B 5.75% 5/1/2016 Aa1 985 988,467
WA St Ser B 5.75% 5/1/2016 Aa1 15 15,053
--------------
TOTAL 12,511,178
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
WASHINGTON TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION 11.91%
Central Puget Sound WA Regl
Transit Auth Sales Tax & Motor(10) 5.25% 2/1/2021 AAA $ 1,750 $ 1,963,185
Port Kalama WA Rev Ser B AMT 5.625% 12/1/2015 A3 400 418,252
Port Seattle WA Spl Fac Rev
Unrefunded Balance AMT Ser C(15) 6.00% 9/1/2029 AAA 1,085 1,217,012
Puerto Rico Comwlth Hwy &
Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 1,000 1,049,940
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.675% 1/1/2010 NR 750 955,155
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(11)(6) 10.61% 7/1/2026 Aaa 500 566,100
--------------
TOTAL 6,169,644
--------------
WATER/SEWER 4.25%
King Cnty WA Swr Rev Ser A(11) 5.25% 1/1/2032 AAA 1,000 1,047,820
Pierce Cnty WA Swr Rev(2) 5.00% 8/1/2021 AAA 1,100 1,152,789
--------------
TOTAL 2,200,609
--------------
TOTAL MUNICIPAL BONDS (Cost $47,044,838) 50,852,318
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 0.00%
MONEY MARKET MUTUAL FUND 0.00%
Dreyfus Municipal Cash Management Plus (Cost $1,395) 1 1,395
--------------
TOTAL INVESTMENTS 98.16% (Cost $47,046,233) $ 50,853,713
==============
SCHEDULE OF INVESTMENTS (UNAUDITED)
INSURED INTERMEDIATE TAX-FREE FUND MARCH 31, 2004
<Caption>
PRINCIPAL
AMOUNT
(000)
---------
MUNICIPAL BONDS 96.97%
EDUCATION 12.53%
Appalachian St Univ NC Rev
Ref-Util Sys(15) 5.00% 5/15/2010 AAA $ 100 112,814
Maricopa Cnty AZ Sch Dist #69
Paradise Vy Ref-Second Ser(10) 5.00% 7/1/2013 AAA 100 112,928
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
56
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
INSURED INTERMEDIATE TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
NY St Dorm Auth Lease
Master Boces Prog Ser A(11) 5.00% 8/15/2008 AAA $ 150 $ 166,578
NY St Dorm Auth Rev
Insured-Fordham Univ(10) 5.00% 7/1/2011 AAA 100 112,714
Pickens Cnty SC Sch Dist Ref Ser B(10) 2.25% 3/1/2005 AAA 100 101,124
University CO Univ Revs
Enterprise Sys-Ser A(15) 5.00% 6/1/2011 AAA 100 112,584
University NC Sys Pool Rev Ser B(2) 4.00% 4/1/2011 AAA 200 212,914
--------------
TOTAL 931,656
--------------
GENERAL OBLIGATION 32.67%
Blackstone-Millville MA Regl Ref(11) 4.00% 5/1/2008 Aaa 150 161,187
Dayton OH City Sch Dist Sch
Facs Constr & Impt-Ser D(10) 5.00% 12/1/2010 AAA 100 113,206
Fairfield OH City Sch Dist
Ref-Sch Impt(10) 4.50% 12/1/2008 AAA 100 109,797
Fremont Custer & El Paso Cnty
CO Sch Dist No. Fremont(11) 2.00% 12/1/2007 Aaa 200 201,194
HI St Ref Ser DB(15) 5.25% 9/1/2013 AAA 100 114,783
Kiski PA Area Sch Dist(10) 3.50% 3/1/2009 AAA 200 209,554
Little Rock AR Cap Impt(11) 4.00% 4/1/2007 AAA 150 159,336
Marlboro TWP NJ Brd Ed(11) 5.00% 7/15/2009 AAA 100 112,391
Montgomery Cnty TN Ref(11) 4.75% 5/1/2014 Aaa 150 163,975
Oklahoma St Ref-Bldg-Ser A(10) 5.00% 7/15/2014 AAA 200 226,050
Oseola WI Corp Purp(15) 3.45% 12/1/2007 AAA 100 105,121
Pima Cnty AZ Univ Sch Dist Ref(c)(11) 4.75% 7/1/2014 AAA 100 108,651
Redlands CA Ref(11) 4.00% 2/1/2009 AAA 100 107,478
South San Antonio TX Indpt
Ref PSF GTD 2.00% 8/15/2006 AAA 200 202,124
TN St Ser A(11) 5.00% 8/1/2009 AAA 100 112,542
Wayne Cnty MI Cmnty College
Cmnty College Impt(10) 5.25% 7/1/2010 Aaa 100 114,177
West Windsor Plainsboro NJ
Regl Sch Dist Ref(11) 4.00% 12/1/2007 AAA 100 107,417
--------------
TOTAL 2,428,983
--------------
HEALTHCARE 2.70%
North Cent TX Health Fac Dev(15) 1.04%# 12/1/2015 AAA 100 100,000
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
INSURED INTERMEDIATE TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Wayne Cnty PA Hosp & Hlth
Facs Wayne Mem Hosp Pj(15) 2.00% 7/1/2005 AAA $ 100 $ 100,906
--------------
TOTAL 200,906
--------------
LEASE 3.04%
Kansas City MO Sch Dist Bldg
Ref Elem Sch Pj Ser B(10) 5.00% 2/1/2012 Aaa 100 112,071
OH St Bldg Auth Ref-St
Facs-Adult Correction-A(11) 5.50% 10/1/2008 AAA 100 113,711
--------------
TOTAL 225,782
--------------
MISCELLANEOUS 18.09%
Baton Rouge LA Sales & Use
Tax Ref Pub Impt Ser A(10) 5.25% 8/1/2007 AAA 100 110,801
CT St Spl Tax Oblig Rev
Ref-Transn Infra-B(11) 5.00% 10/1/2006 AAA 100 108,289
IL St Sales Tax Rev First Ser(11) 5.25% 6/15/2013 AAA 100 114,158
IN Bd Bk Rev Spl Prog-
South Bend Tif-Ser E(15) 5.00% 9/1/2014 AAA 200 219,386
Mercer Cnty NJ Impt Auth Ref-
Regl Sludge Pj(10) 5.00% 12/15/2014 AAA 200 224,298
MI St Envr Ref(15)(14) 5.50% 12/1/2013 AAA 100 117,247
MO Dev Fin Brd Cultural Facs
Nelson Gallery(15) 5.25% 12/1/2013 AAA 100 113,165
OR St Dept Administrative Svcs(11) 5.00% 9/1/2012 AAA 100 112,857
Phoenix AZ Str & Hwy User Rev
Ref-Jr Lien(10) 5.00% 7/1/2008 AAA 100 111,356
Regional Transn Dist CO Sales(11) 5.00% 11/1/2009 AAA 100 113,038
--------------
TOTAL 1,344,595
--------------
POWER 3.82%
Puerto Rico Elec Pwr Auth Ref
Ser JJ(15) 5.25% 7/1/2013 AAA 100 115,329
TX Muni Pwr Agy Rev Ref(15) 5.25% 9/1/2008 AAA 150 168,771
--------------
TOTAL 284,100
--------------
PRE-REFUNDED 4.67%
Chicago IL Met Wtr
Reclamation Dist Gtr Chicago Cap Impt ETM 5.50% 12/1/2010 Aaa 100 116,816
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
58
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
INSURED INTERMEDIATE TAX-FREE FUND MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Detroit MI Wtr Supply Sys Sr
Lien Ser A(10) 5.25% 7/1/2033 AAA $ 100 $ 114,748
Muhlenberg PA Sch Dist(10) 5.40% 9/1/2012 AAA 100 115,655
--------------
TOTAL 347,219
--------------
TRANSPORTATION 8.33%
New Haven CT Air Rights Pkg Ref(2) 5.375% 12/1/2012 AAA 100 115,998
North TX Thruway Auth Dallas
North Twy Sys Rev Ref Ser C(11) 3.00% 1/1/2006 AAA 100 102,668
OR St Dept Transn Rev
Ref-Regl Lt Rail Extn(2) 5.00% 6/1/2009 AAA 150 168,725
PA St Tpk Comm Oil
Sr Ser A(15) 5.25% 12/1/2012 AAA 100 114,655
Puerto Rico Comwlth Hwy & Ser E(11) 5.50% 7/1/2013 AAA 100 117,304
--------------
TOTAL 619,350
--------------
WATER/SEWER 11.12%
Amarillo TX Wtrwks/Swr sys(2) 3.00% 4/1/2007 AAA 150 154,817
Anacortes WA Swr Rev Ref(11) 4.00% 11/1/2007 Aaa 100 106,897
Columbus GA Wtr & Sew Rev Ref(11) 5.25% 5/1/2013 AAA 100 114,503
Lansing MI Sew Disp Sys Ref(10) 5.00% 5/1/2014 AAA 150 168,415
Shreveport LA Wtr & Swr Rev
Ref-Ser A(10) 5.00% 12/1/2012 AAA 100 112,544
Upper Occoquan Sew Auth VA(11) 5.00% 7/1/2011 AAA 150 169,696
--------------
TOTAL 826,872
--------------
TOTAL MUNICIPAL BONDS (Cost $7,092,748) 7,209,463
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 2.03%
MONEY MARKET MUTUAL FUND 2.03%
Dreyfus Municipal Cash Management Plus (Cost $150,834) 151 150,834
--------------
TOTAL INVESTMENTS 99.00% (Cost $7,243,582) $ 7,360,297
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
59
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
FLORIDA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 95.63%
EDUCATION 3.85%
Miami-Dade Cnty FL Ed Fac
Auth Rev Ser A(2) 6.00% 4/1/2023 AAA $ 2,000 $ 2,341,000
Miami-Dade Cnty FL Ed Fac
Univ Miami-Ser A(2) 5.00% 4/1/2034 AAA 1,000 1,047,250
--------------
TOTAL 3,388,250
--------------
GENERAL OBLIGATION 10.84%
Boca Raton FL 5.25% 7/1/2016 AAA 1,615 1,780,537
Boca Raton FL 5.25% 7/1/2017 AAA 1,000 1,095,410
FL St Brd of Ed Pub
Ed Ser A 5.00% 6/1/2032 AA+ 1,250 1,305,950
FL St Brd Ed Cap Outlay
Pub Ed Ser E 5.625% 6/1/2025 AA+ 1,000 1,127,750
FL St Brd Ed Cap Outlay Ser A 5.25% 6/1/2024 AA+ 2,000 2,148,520
FL St FL Dept of
Transn 5.00% 7/1/2032 AA+ 1,000 1,041,990
Hillsborough Cnty FL Sch Brd
Ctfs Partn(15) 5.00% 7/1/2029 AAA 1,000 1,041,990
--------------
TOTAL 9,542,147
--------------
HEALTHCARE 13.80%
Highlands Cnty FL Fac Auth
Rev Hosp Adventist Health Sys D 5.875% 11/15/2029 A 2,000 2,127,420
Highlands Cnty FL Fac Auth
Rev Hosp Adventist/Sunbelt Ser A 6.00% 11/15/2031 A 2,000 2,137,620
Miami FL Health Facs Auth
Catholic Health East Ser B 5.25% 11/15/2033 A 1,000 1,008,960
Orange Cnty FL Hlth Fac Auth
Rev Hosp Orlando Regl 5.75% 12/1/2032 A2 1,000 1,047,800
Pinellas Cnty FL Health Facs
Baycare Health System 5.50% 11/15/2033 A1 2,000 2,084,240
Puerto Rico Ind Tourist Ed
Med Envr Ctrl Fac Hosp 6.50% 11/15/2020 AA 410 477,097
Sarasota Cnty FL Pub Hosp Brd
Rev Sarasota Mem Hosp Ser B(15) 5.50% 7/1/2028 AAA 2,875 3,273,331
--------------
TOTAL 12,156,468
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
60
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
FLORIDA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
HOUSING 2.79%
Lee Cnty FL Hsg Fin Auth Sing
Fam Mtg Rev AMT(13)(7) 6.40% 3/1/2029 Aaa $ 965 $ 1,030,031
Orange Cnty FL Hsg Fin Auth
Ser A-1 AMT(13) Zero Coupon 3/1/2028 Aaa 665 182,190
Puerto Rico Hsg Fin Auth Cap
Fd Prog(20) 4.50% 12/1/2023 AA 1,235 1,247,474
--------------
TOTAL 2,459,695
--------------
INDUSTRIAL 1.51%
Lee Cnty FL Ind Dev Auth Ref
Bonita Springs Util Pj AMT(2) 5.125% 11/1/2019 AAA 1,250 1,332,638
--------------
LEASE 1.25%
Collier Cnty FL Sch Brd(11) 5.375% 2/15/2021 Aaa 1,000 1,098,280
--------------
MISCELLANEOUS 11.56%
Jacksonville FL Excise Taxes
Ref Ser C AMT(15) 5.25% 10/1/2020 AAA 1,000 1,071,770
Jacksonville FL Sales Tax Rev
Better Jacksonville(2) 4.50% 10/1/2030 AAA 2,500 2,428,375
Jacksonville FL Sales Tax Rev
Ref & Impt Loc Govt(10) 5.375% 10/1/2018 AAA 1,000 1,117,210
Miami-Dade Cnty FL Spl Oblig
Sub Ser A(15) Zero Coupon 10/1/2024 AAA 3,000 1,002,030
Miami-Dade Cnty FL Spl Oblig
Sub Ser B(15) 5.00% 10/1/2037 AAA 1,000 1,029,160
Orange Cnty FL Tourist Dev Sub(2) 5.125% 10/1/2025 AAA 1,445 1,524,880
Osceola Cnty Tourist Dev Tax
Rev Ser A(10) 5.00% 10/1/2032 AAA 1,400 1,454,936
Tampa FL Sports Auth Rev
Tampa Bay Arena Pj(15) 6.00% 10/1/2015 AAA 450 548,986
--------------
TOTAL 10,177,347
--------------
PRE-REFUNDED 27.23%
Miami-Dade Cnty FL Expwy Auth
Toll Sys Rev(10) 6.375% 7/1/2029 AAA 1,250 1,521,038
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM+ 9.589% 10/1/2040 Aaa 1,250 1,534,850
Orange Cnty FL Tourist Dev
Tax Rev ETM(2) 6.00% 10/1/2016 AAA 710 723,327
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
FLORIDA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.00% 7/1/2031 A $ 1,000 $ 1,195,450
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.50% 7/1/2027 A 1,000 1,223,960
Puerto Rico Comwlth Pub Impt RIBs(15) 10.11% 7/1/2026 Aaa 3,500 4,665,500
Puerto Rico Comwlth Pub Impt RIBs 10.393% 7/1/2029 A- 2,000 2,278,880
Puerto Rico Muni Fin Agy Ser A 6.50% 7/1/2019 AAA 2,915 2,996,707
Tampa Bay Wtr FL Util Sys Rev(10) 6.00% 10/1/2024 AAA 3,000 3,606,330
Tampa FL Rev Allegany Hlth
Sys St. Joseph(15) 6.70% 12/1/2018 AAA 4,000 4,230,760
--------------
TOTAL 23,976,802
--------------
RESOURCE RECOVERY 0.88%
Jacksonville FL Pollution Rev
Anheuser-Busch Pj 5.70% 8/1/2031 A+ 750 771,330
--------------
SPECIAL TAX 1.87%
Tampa FL Util Tax & Spl Rev
Ref-Ser A(2) 5.25% 10/1/2020 AAA 1,505 1,648,893
--------------
TRANSPORTATION 11.78%
Florida Ports Fin Commn Rev
St Transn TR FD Intermodal Pg AMT(10) 5.50% 10/1/2029 AAA 1,295 1,410,980
Jacksonville FL Port Auth
Arpt Rev Ser A AMT(10) 6.25% 10/1/2024 AAA 1,000 1,084,400
Miami-Dade Cnty FL Aviation
Miami Intl Airport-Hub-Ser B(c)(10) 5.00% 10/1/2030 AAA 1,000 1,030,390
Miami-Dade Cnty FL Expwy Auth
Toll Sys Rev Ref(10) 5.125% 7/1/2025 Aaa 750 792,495
Orlando & Orange Cnty Expwy Ser B(2) 5.00% 7/1/2035 AAA 2,200 2,300,870
Pensacola FL Arpt Rev Ser A AMT(15) 6.125% 10/1/2018 AAA 1,250 1,416,675
Puerto Rico Comwlth Hwy & Ser E(11) 5.50% 7/1/2013 AAA 650 762,476
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser C 6.00% 7/1/2029 A 880 1,009,378
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(11)(6) 10.61% 7/1/2026 Aaa 500 566,100
--------------
TOTAL 10,373,764
--------------
WATER/SEWER 8.27%
Jea FL Wtr & Swr Sys Rev Ser A(c) 4.50% 10/1/2039 AA- 1,000 950,740
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
62
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
FLORIDA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Melbourne FL Wtr & Swr Rev
Ref & Impt Ser A(10) 5.00% 10/1/2032 AAA $ 1,610 $ 1,673,176
Miami Beach FL Stormwater Rev(10) 5.25% 9/1/2020 AAA 1,000 1,080,690
Miami Beach FL Wtr & Swr Rev(2) 5.25% 9/1/2020 AAA 1,000 1,081,870
Miami Beach FL Wtr & Swr Rev(2) 5.50% 9/1/2027 AAA 1,000 1,104,870
Ocala FL Wtr & Swr Rev(10) 5.25% 10/1/2027 Aaa 800 851,816
Sebring FL Wtr & Wastewtr Rev Ref(10) 5.25% 1/1/2020 AAA 500 541,845
--------------
TOTAL 7,285,007
--------------
TOTAL MUNICIPAL BONDS (Cost $77,040,704) 84,210,621
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 4.08%
MONEY MARKET MUTUAL FUND 4.08%
Dreyfus FL Muni Cash Management (Cost $3,592,329) 3,592 3,592,329
--------------
TOTAL INVESTMENTS 99.71% (Cost $80,633,033) $ 87,802,950
==============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
GEORGIA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
---------
MUNICIPAL BONDS 97.47%
EDUCATION 19.93%
Athens-Clarke Cnty GA Univ
Govt UGA ref Ccrc Bldg LLC Pj(2) 5.00% 12/15/2032 AAA $ 1,300 1,346,254
Athens GA Hsg Auth Student
Hsg Univ of GA East Campus(2) 5.25% 12/1/2023 Aaa 500 536,615
Athens GA Hsg Auth Student
Hsg Univ of GA East Campus(2) 5.00% 12/1/2027 Aaa 3,000 3,115,110
Bulloch Cnty GA Dev Auth GA
So Univ Pj(2) 5.00% 8/1/2021 Aaa 500 528,900
Dougherty Cnty GA Sch Dist
Sales Tax 4.00% 3/1/2007 AA 600 636,318
Fulton Cnty GA Dev Auth Rev
GA Tech Athletic Assn(2) 5.50% 10/1/2017 AAA 1,000 1,137,590
Fulton Cnty GA Dev Auth Rev
GA Tech Fndtn Fdg Ser A 5.00% 11/1/2031 AA+ 1,400 1,455,538
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
63
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Fulton Cnty GA Dev Auth Rev
GA Tech Fndtn Sac II Pj Ser A 5.125% 11/1/2021 AA+ $ 750 $ 803,115
Fulton Cnty GA Dev Auth Rev
Morehouse College Pj(2) 5.875% 12/1/2030 AAA 1,850 2,138,951
Fulton Cnty GA Dev Auth Rev
Tuff Morehouse Pj Ser A(2) 5.50% 2/1/2022 AAA 1,000 1,103,370
Marietta GA Dev Auth Rev Ser
Student Hsg-Spsu Student Hsg I 5.125% 9/15/2023 A2 1,000 1,031,020
Private Colleges & Univ Auth
GA Emory Univ Pj Ser A 5.50% 11/1/2020 AA 1,000 1,125,700
Private Colleges & Univ Auth
GA Emory Univ Pj Ser A 5.50% 11/1/2025 AA 1,000 1,103,320
Private Colleges & Univ Auth
GA Rev Emory Univ Pj Ser A 5.75% 11/1/2018 AA 500 580,690
Private Colleges & Univ Auth
GA Rev Mercer Univ Pj 5.75% 10/1/2031 Baa1 500 525,740
Private Colleges & Univ Auth
Spelman College 5.25% 6/1/2021 Aa3 1,340 1,458,711
--------------
TOTAL 18,626,942
--------------
GENERAL OBLIGATION 10.56%
Forsyth Cnty GA Ref 4.25% 3/1/2020 AA 1,000 989,700
Forsyth Cnty GA Sch Dist 6.00% 2/1/2016 Aa2 2,000 2,349,520
GA St Ser C 7.25% 7/1/2005 AAA 1,500 1,612,005
GA St Ser F 5.00% 11/1/2018 AAA 1,000 1,100,900
Puerto Rico Comwlth Pub Impt
Pub Impt Ser A 5.25% 7/1/2024 A- 500 532,725
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 A- 370 381,821
Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 A- 1,000 1,040,060
Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 1,735 1,856,537
--------------
TOTAL 9,863,268
--------------
HEALTHCARE 4.39%
Athens-Clarke Cnty GA Univ
Govt Catholic Health East Issue 5.50% 11/15/2032 A 1,000 1,028,940
Clarke Cnty GA Hosp Auth Rev
Ctfs Athens Regl Med Ctr Pj(15) 5.125% 1/1/2032 AAA 500 520,505
Cobb Cnty GA Hosp Auth Rev
Ref & Impt-Rev Antic Ctfs(2) 5.25% 4/1/2024 AAA 1,000 1,080,220
Glynn Brunswick GA Mem Hosp
Auth Rev Southeast GA Hlth(15) 6.00% 8/1/2016 AAA 400 442,492
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
64
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Ind Tourist Ed
Med Envr Ctrl Fac Hosp 6.50% 11/15/2020 AA $ 410 $ 477,097
Ware Cnty GA Hosp Auth Rev
Antic Ctfs(15) 5.50% 3/1/2021 Aaa 500 553,735
--------------
TOTAL 4,102,989
--------------
HOUSING 3.38%
Clayton Cnty GA Hsg Auth
Multi Fam Hsg Rev(12) 5.60% 12/20/2024 Aaa 495 535,402
DeKalb Cnty GA Hsg Auth Multi
Fam Lakes At Indian Creek AMT(11) 7.15% 1/1/2025 AAA 500 518,590
GA St Hsg & Fin Auth Rev Sing
Fam Sub Ser D-2 AMT 5.75% 12/1/2031 AAA 965 992,937
GA St Hsg & Fin Auth Rev
Subseries A-2 AMT 4.875% 12/1/2024 AAA 600 602,370
Savannah GA Economic Dev Auth
Multi Fam Hsg Rev GNMA AMT(12) 5.15% 11/20/2022 AAA 500 512,310
--------------
TOTAL 3,161,609
--------------
INDUSTRIAL 0.81%
Albany Dougherty GA Payroll
Dev Auth Procter & Gamble AMT 5.20% 5/15/2028 AA- 500 541,875
Monroe Cnty GA Dev Auth Poll
GA Pwr Co Plant(2) 5.25% 7/1/2031 AAA 205 213,054
--------------
TOTAL 754,929
--------------
LEASE 3.85%
College Park GA Business
Civic Ctr Pj(2) 5.75% 9/1/2026 AAA 450 516,524
GA Muni Assn Inc Ctfs
City Court Atlanta Pj(2) 5.25% 12/1/2026 AAA 750 800,482
Puerto Rico Pub Fin Corp
Comwlth Approp Ser A(15) 5.50% 8/1/2020 AAA 1,500 1,708,845
Richmond Cnty GA Pub Fac Cnty
Brd Ed Pj(2) 6.00% 11/1/2024 Aaa 500 573,300
--------------
TOTAL 3,599,151
--------------
MISCELLANEOUS 9.10%
Association Cnty GA Leasing
Pj Rockdale Cnty GA Pub Purp Pj(2) 5.625% 7/1/2020 AAA 25 28,290
Cobb Marietta GA Coliseum &
Exhibit Hall Auth Rev(15) 5.625% 10/1/2026 AAA 1,000 1,130,010
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
65
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Fayette Cnty GA Pub Fac Auth
Rev Criminal Justice Center Pj 5.00% 6/1/2026 AA $ 750 $ 782,602
George L Smith II GA World
Congress Ctr Auth Rev AMT(15) 5.75% 7/1/2015 AAA 500 557,035
Puerto Rico Pub Bldg Auth Rev
Gtd Govt Fac Ser D 5.25% 7/1/2036 A- 1,250 1,315,612
Puerto Rico Pub Bldg Auth Rev
Gtd Govt Fac Ser D 5.375% 7/1/2033 A- 2,300 2,486,415
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.70% 8/1/2025 BBB+ 2,000 2,202,180
--------------
TOTAL 8,502,144
--------------
POWER 5.97%
GA Muni Elec Auth Pwr R
Ser FF(15)(14) 5.00% 1/1/2026 AAA 1,100 1,135,288
Municipal Elec Auth GA Combustion
Cycle Pj Ser A 5.00% 11/1/2023 A 1,000 1,021,250
Municipal Elec Auth GA
Combustion Turbine Pj Ser A(15) 5.25% 11/1/2022 AAA 1,445 1,558,635
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN(15) 5.00% 7/1/2032 AAA 500 524,090
Puerto Rico Elec Pwr Auth Ref
Ser FF(15) 5.25% 7/1/2005 AAA 250 262,600
Puerto Rico Elec Pwr Auth Ser HH(11) 5.25% 7/1/2029 AAA 1,000 1,080,190
--------------
TOTAL 5,582,053
--------------
PRE-REFUNDED 18.68%
Atlanta GA Arpt Fac Rev
Ref-Gen-Ser A(10) 5.50% 1/1/2026 AAA 3,645 4,221,639
Atlanta GA Arpt Fac Rev Ser A(10) 5.60% 1/1/2030 AAA 1,500 1,745,235
Atlanta GA ETM 5.60% 12/1/2015 AA- 95 97,466
Cobb Cnty GA Kennestone Hosp
Auth Rev Ctfs Ser 86 A ETM(15) Zero Coupon 8/1/2015 AAA 395 212,024
Fayette Cnty GA Pub Fac Auth
Criminal Justice Center Pj 6.00% 6/1/2030 AA 1,000 1,193,180
Forsyth Cnty GA Wtr & Sew Auth Rev 6.25% 4/1/2021 AA 750 901,785
Municipal Secs Trust Ctfs Ser
7005 Cl B RIBs ETM+ 9.589% 10/1/2040 Aaa 1,000 1,227,880
Puerto Rico Comwlth Hwy
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 A 2,000 2,209,160
Puerto Rico Comwlth Pub Impt(11)(6) 5.50% 7/1/2017 AAA 500 552,875
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
66
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Comwlth Pub Impt(15) 5.75% 7/1/2026 AAA $ 1,990 $ 2,321,335
Puerto Rico Comwlth Pub Impt RIBs 10.393% 7/1/2029 A- 1,125 1,281,870
Puerto Rico Elec Pwr Auth
Ser T RIBs(11) 11.472% 7/1/2018 AAA 1,000 1,065,140
Savannah GA Econ Dev Auth Rev
Sub Ser C ETM Zero Coupon 12/1/2021 Aaa 1,000 423,950
--------------
TOTAL 17,453,539
--------------
RESOURCE RECOVERY 2.42%
Atlanta GA Wtr & Waste Wtr
Rev Ser A-Unrefunded Balance(10) 5.00% 11/1/2029 AAA 2,090 2,155,187
Cobb Cnty GA Solid Waste Mgmt
Auth Rev AMT 6.40% 1/1/2015 AAA 100 103,980
--------------
TOTAL 2,259,167
--------------
TRANSPORTATION 12.12%
Atlanta GA Arpt Fac Rev AMT(15) Zero Coupon 1/1/2010 AAA 1,235 937,735
Macon Bibb Cnty GA Indl Auth
Arpt Impt Rev Ref Atlantic AMT(2) 5.00% 4/1/2018 AAA 500 528,645
Metropolitan Atlanta GA Rapid
Ref Second Indenture Ser A(15) 6.25% 7/1/2005 AAA 500 531,525
Puerto Rico Comwlth Hwy & Ser D(11) 5.00% 7/1/2032 AAA 225 235,656
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.675% 1/1/2010 NR 1,750 2,228,695
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B(15) 5.875% 7/1/2020 AAA 1,000 1,173,850
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser C 6.00% 7/1/2029 A 250 286,755
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser D 5.75% 7/1/2041 A 3,385 3,853,112
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser PMD RIBs(11)(6) 10.61% 7/1/2026 Aaa 500 566,100
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser D 5.375% 7/1/2036 A 405 434,039
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A 500 551,585
--------------
TOTAL 11,327,697
--------------
WATER/SEWER 6.26%
Augusta GA Wtr & Swr Rev(11) 5.25% 10/1/2022 AAA 500 540,870
Augusta GA Wtr & Swr Rev(11) 5.25% 10/1/2030 AAA 1,110 1,170,362
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
67
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
GEORGIA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Carroll Cnty GA Wtr Auth Wtr &
Swr Rev(2) 5.25% 7/1/2021 Aaa $ 500 $ 545,975
DeKalb Cnty GA Wtr & Swr 5.00% 10/1/2028 AA 1,000 1,034,120
Elberton GA Combined Util Sys
Rev Ref & Impt(2) 5.50% 1/1/2019 Aaa 550 613,712
Glynn Cnty GA Wtr & Swr Rev
Ref & Impt(2) 5.00% 4/1/2023 Aaa 750 787,088
Henry Cnty GA Wtr & Sew Auth Rev(10) 5.625% 2/1/2030 AAA 1,050 1,152,427
--------------
TOTAL 5,844,554
--------------
TOTAL MUNICIPAL BONDS (Cost $85,968,763) $ 91,078,042
==============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2004
<Table>
MUNICIPAL BONDS 96.12%
EDUCATION 8.18%
Eastern MI Univ Rev Gen Ser B(10) 5.60% 6/1/2025 AAA 1,430 1,589,917
Forest Hills MI Pub Schs(10) 5.25% 5/1/2020 Aaa 2,000 2,167,160
Grand Valley MI St Univ Rev(10) 5.50% 2/1/2018 AAA 1,150 1,312,069
Univ MI Univ Rev
Student Fee Ser A 6.00% 4/1/2007 Aaa 250 280,810
Wayne Cnty MI Cmnty College Impt(2) 5.50% 7/1/2019 AAA 565 631,687
--------------
TOTAL 5,981,643
--------------
GENERAL OBLIGATION 28.64%
Anchor Bay MI Sch Dist Sch
Bldg & Site 5.00% 5/1/2033 AA+ 1,000 1,040,880
Belding MI Area Sch(2) 5.00% 5/1/2026 AAA 400 408,844
Bloomingdale MI Pub Sch Dist # 16 5.50% 5/1/2021 AA+ 450 501,763
Caledonia MI Cmnty Schs Ref(11)(6) 5.25% 5/1/2022 AAA 1,025 1,104,663
Carman-Ainsworth Cmnty Sch(10) 5.00% 5/1/2027 AAA 1,000 1,036,240
Central Montcalm MI Pub Sch(15) 5.90% 5/1/2019 AAA 1,000 1,142,560
Crawford Ausable MI Sch Dist
Sch Bldg & Site 5.00% 5/1/2021 AA+ 350 368,938
Detroit MI City Sch Dist Sch
Bldg & Site Impt Ser A(10) 5.25% 5/1/2028 AAA 1,000 1,061,450
Elkton Pigeon Bay Port MI Sch Dist 5.375% 5/1/2025 AA+ 700 749,077
Huron MI Sch Dist(11) 5.25% 5/1/2021 AAA 250 267,805
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
68
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Kaleva Norman Etc MI Sch Dist
Bldg & Site(10) 6.00% 5/1/2025 Aaa $ 600 $ 704,130
Laingsburg MI Cmnty Sch Dist
Sch Bldg & Site Bd 5.25% 5/1/2026 AA+ 450 478,354
Lake Orion MI Cmnty Sch Dist Ref 5.125% 5/1/2022 AA+ 550 584,898
Memphis MI Cmnty Sch(10) 5.25% 5/1/2029 Aaa 150 155,873
Paw Paw MI Pub Sch Dist Sch
Bldg & Site 6.00% 5/1/2030 AA+ 1,325 1,536,152
Saline MI Area Sch(10) 5.50% 5/1/2015 AAA 750 790,073
South Lyon MI Cmnty Sch(11) 5.50% 5/1/2023 AAA 1,425 1,576,364
South Lyon MI Cmnty Sch Sch
Bldg and Site(10) 5.25% 5/1/2022 AAA 1,000 1,077,890
Southfield MI Pub Schs Sch
Bldg & Site-Ser A(10) 5.25% 5/1/2021 AAA 1,025 1,121,647
Warren MI Cons Sch Dist Sch
Bldg & Site(10) 5.00% 5/1/2027 AAA 1,000 1,039,900
Wayne Charter Cnty MI Arpt
Hotel-Detroit Met Arpt-A(15) 5.50% 12/1/2018 AAA 1,500 1,678,110
Wayne Cnty MI Bldg Auth Cap
Impt Ser A(15) 5.25% 6/1/2016 AAA 500 545,245
Williamston MI Cmnty Sch(15) 5.50% 5/1/2025 AAA 1,725 1,976,091
--------------
TOTAL 20,946,947
--------------
HEALTHCARE 1.57%
MI St Hosp Fin Auth Rev
Ref Trinity Hlth Ser A(2)(17) 6.00% 12/1/2027 AAA 1,000 1,151,950
--------------
HOUSING 2.79%
MI St Hsg Dev Auth Ser D 5.95% 12/1/2016 AA+ 500 524,235
Puerto Rico Hsg Fin Auth Cap
Fd Prog(20) 4.50% 12/1/2023 AA 1,500 1,515,150
--------------
TOTAL 2,039,385
--------------
LEASE 3.34%
Grand Rapids MI Pub Sch(15) 5.00% 11/1/2021 AAA 250 264,635
MI St Ctfs Partn(2) Zero Coupon 6/1/2022 AAA 2,000 842,340
MI St Hse
Representative Ctfs Partn(2) Zero Coupon 8/15/2024 AAA 3,565 1,333,061
--------------
TOTAL 2,440,036
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
69
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS 2.73%
MI St Bldg Auth Rev Ref-Facs
Prog-Ser I(11) 5.00% 10/15/2009 AAA $ 1,500 $ 1,687,530
MI Muni Bd Auth Rev(2) 6.75% 11/1/2014 AAA 295 310,287
--------------
TOTAL 1,997,817
--------------
POWER 4.61%
Lowell MI Elec Supply Sys Rev(15) 5.00% 8/1/2027 AAA 750 777,855
MI St Strategic Fd Ltd Oblig(2) 7.00% 5/1/2021 AAA 500 663,525
MI St Strategic Fd Ltd Oblig
Rev Detroit Fd Ser BB(15) 7.00% 7/15/2008 AAA 350 414,754
MI St Strategic Fund Ltd Oblig
Ref Detroit Ed Co Pj-Ser A AMT(15) 4.875% 6/1/2029 AAA 1,000 992,060
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN(15) 5.00% 7/1/2032 AAA 500 524,090
--------------
TOTAL 3,372,284
--------------
PRE-REFUNDED 25.73%
Alpena MI Pub Sch(15) 5.625% 5/1/2022 AAA 200 223,334
Alpena MI Pub Sch(15) 5.625% 5/1/2022 AAA 300 335,001
Anchor Bay MI Sch Dist Sch
Bldg & Site Ser I(10) 6.00% 5/1/2023 AAA 1,100 1,290,905
Eastern MI Univ Rev(10) 5.50% 6/1/2027 AAA 500 556,395
Greenville MI Pub Sch Ref(11) 6.00% 5/1/2025 AAA 1,000 1,173,550
Hartland MI Cons Sch Dist(10) 6.00% 5/1/2021 AAA 1,950 2,311,725
Howell MI Pub Sch(15) 6.00% 5/1/2025 AAA 1,100 1,240,635
Huron Valley MI Sch Dist(10) 5.75% 5/1/2022 AAA 250 280,100
Kalamazoo MI Hosp Fin Auth
Fac Rev Hosp Rev RIBs ETM(10) 9.308% 6/1/2011 AAA 2,000 2,100,620
Lake Orion MI Cmnty Sch Dist(2) 7.00% 5/1/2020 AAA 1,050 1,127,164
Lake Orion MI Cmnty Sch Dist Ser A(10) 6.00% 5/1/2017 AAA 1,335 1,582,643
Lakeview MI Cmnty Sch(10) 5.60% 5/1/2022 AAA 210 234,345
MI Muni Bd Auth Rev Ser G(2) 6.75% 11/1/2014 AAA 1,205 1,269,106
Potterville MI Pub Sch(11) 6.00% 5/1/2029 AAA 1,000 1,173,550
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.50% 7/1/2027 A 1,000 1,223,960
Puerto Rico Comwlth Pub Impt RIBs 10.393% 7/1/2029 A- 925 1,053,982
Puerto Rico Comwlth Ser A ETM 5.50% 10/1/2040 AAA 1,000 1,113,940
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
70
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Elec Pwr Auth
Ser T RIBs(11) 11.472% 7/1/2018 AAA $ 500 $ 532,570
--------------
TOTAL 18,823,525
--------------
TRANSPORTATION 5.07%
Kent Cnty MI Arpt Fac Rev Ref
Kent Cnty Intl Arpt 5.00% 1/1/2020 AAA 700 730,429
MI St Comprehensive Ser B(11) 5.25% 5/15/2020 AAA 1,000 1,087,980
MI St Comprehensive
Transn Ref Ser A(11) 5.00% 11/1/2021 AAA 700 736,911
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.675% 1/1/2010 NR 500 636,770
Wayne Charter Cnty MI Arpt
Hotel-Detroit Met Arpt-A(15) 5.00% 12/1/2030 AAA 500 516,280
--------------
TOTAL 3,708,370
--------------
WATER/SEWER 13.46%
Detroit MI Disp Rev Ref
Senior Lien Ser A(11) 5.25% 7/1/2023 AAA 1,000 1,119,210
Detroit MI Disp Rev Ref Ser B(15) 5.25% 7/1/2021 AAA 805 845,604
Detroit MI Disp Rev Ref-Sr
Lien-Ser A(11) 5.00% 7/1/2028 AAA 1,000 1,039,690
Detroit MI Wtr Supply Sys SR
Lien-Ser A(15) 5.00% 7/1/2034 AAA 1,000 1,032,800
Grand Rapids MI San Swr Sys
Rev Ref & Impt Ser A(10) 4.75% 1/1/2028 AAA 1,050 1,058,652
Lansing MI Brd Wtr & Lt Wtr
Supply Steam & Elec Util Sys(11) 5.00% 7/1/2022 AAA 1,865 1,969,384
MI Muni Bd Auth Rev
Drinking Wtr St Revolving FD 5.00% 10/1/2024 AAA 1,000 1,045,720
Muskegon Heights MI Wtr Sys Ser A(15) 5.625% 11/1/2020 Aaa 300 338,445
Muskegon Heights MI Wtr Sys Ser A(15) 5.625% 11/1/2025 Aaa 320 355,440
Ypsilanti MI Wtr Supply & Sew
Disp Sys Rev Ser C(2) 5.00% 9/1/2027 AAA 1,000 1,037,470
--------------
TOTAL 9,842,415
--------------
TOTAL MUNICIPAL BONDS (Cost $64,720,606) $ 70,304,372
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
71
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 99.68%
EDUCATION 15.71%
Lehigh Cnty PA Gen Purp Auth
Rev Desales University Pj(16) 5.125% 12/15/2023 AA $ 1,000 $ 1,045,960
Lycoming Cnty PA Auth College
Rev College of Technology(2) 5.25% 5/1/2032 Aaa 700 739,550
Norwin PA Sch Dist(c)(11) 5.00% 4/1/2033 AAA 1,000 1,039,050
PA St Higher Ed Facs Auth Rev
Auth Rev Lafayette College Pj 6.00% 5/1/2030 AA- 1,425 1,643,581
PA St Higher Ed Facs Auth Rev
Auth Rev Univ Sciences Phil(15) 5.25% 11/1/2025 AAA 1,000 1,039,860
PA St Higher Ed Facs Auth Rev
Drexel Univ-Ser A 5.20% 5/1/2032 A 600 625,242
PA St Higher Ed Facs Auth Rev
Univ of Scranton(2) 5.75% 11/1/2017 AAA 1,000 1,152,700
PA St Higher Ed Facs Auth Rev
Ursinus College(16) 5.125% 1/1/2033 AA 1,000 1,023,200
PA St Higher Ed Facs Auth Rev
Ursinus College(16) 5.50% 1/1/2024 AA 1,000 1,070,930
PA St Higher Ed Fac
Auth Drexel Univ 6.00% 5/1/2029 A 800 869,328
PA St Higher Ed Fac
Auth Moravian College Pj 5.375% 7/1/2031 AA 1,000 1,047,180
PA St Higher Ed Fac
Auth Univ of the Arts(16) 5.625% 3/15/2025 AA 1,000 1,059,150
PA St Higher Ed Fac
Auth Univ of the Arts(16) 5.75% 3/15/2030 AA 500 549,480
Philadelphia PA Auth Ind Dev
Rev Ed Cmnty Foreign Med Grads(15) 5.00% 6/1/2015 AAA 250 267,973
State Pub Sch Bldg Auth PA
College Rev(2) Zero Coupon 7/15/2014 AAA 295 196,157
State Pub Sch Bldg Auth PA
College Rev(2) Zero Coupon 7/15/2015 AAA 295 186,242
State Pub Sch Bldg Auth PA
College Rev(2) Zero Coupon 7/15/2016 AAA 295 176,239
State Pub Sch Bldg Auth PA
Rev Del Cnty Cmnty College Pj(15) 5.50% 10/1/2020 AAA 800 900,560
State Pub Sch Bldg Auth PA
Sch Rev Lease-Philadelphia Sch(11) 5.25% 6/1/2027 AAA 1,000 1,062,650
--------------
TOTAL 15,695,032
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
72
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION 18.13%
Delaware Valley PA Regl Fin
Auth Loc Govt Rev Ser C(2) 7.75% 7/1/2027 AAA $ 1,000 $ 1,417,520
Mifflin Cnty PA(10) 5.625% 9/1/2031 AAA 2,500 2,766,500
Montgomery Cnty PA 5.00% 9/15/2022 Aaa 625 655,850
Pennsbury PA Sch Dist(10) 5.50% 1/15/2020 Aaa 1,000 1,106,980
Philadelphia PA Sch Dist Ser A(11) 5.50% 2/1/2031 AAA 500 541,190
Philadelphia PA Sch Dist Ser A(11) 5.75% 2/1/2019 AAA 450 514,764
Philadelphia PA Sch Dist Ser A(11) 5.75% 2/1/2020 AAA 250 285,490
Philadelphia PA Sch Dist Ser A(11) 5.75% 2/1/2021 AAA 500 569,675
Philadelphia PA Sch Dist Ser A(11) 5.75% 2/1/2030 AAA 1,250 1,405,587
Philadelphia PA Sch Dist Ser B(10) 5.625% 8/1/2021 AAA 1,000 1,104,320
Philadelphia PA Sch Dist Ser B(10) 5.625% 8/1/2022 AAA 1,000 1,099,150
Philadelphia PA Tax & Rev
Antic Nts 2.00% 6/30/2004 MIG1 1,000 1,002,330
Plum Boro PA Sch Dist(10) 5.25% 9/15/2030 AAA 1,000 1,050,840
Puerto Rico Comwlth Pub Impt Ser A(10) 5.00% 7/1/2032 AAA 500 523,680
Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 A- 2,750 2,942,638
Tredyffrin-Easttown PA Sch Dist 5.50% 2/15/2017 Aaa 1,000 1,129,540
--------------
TOTAL 18,116,054
--------------
HEALTHCARE 7.29%
Allegheny Cnty PA Hosp Dev
Catholic Health East Issue 5.50% 11/15/2032 A 1,500 1,535,010
Chester Cnty PA Hlth & Ed Fac
Auth Hlth Sys Rev RIBs(2) 10.20% 5/15/2020 AAA 2,600 2,727,972
Delaware Cnty PA Auth Hosp
Rev Crozer Chester Med Ctr(1)(4) 5.375% 12/1/2018 A 1,000 1,049,190
Puerto Rico Ind Tourist Ed
Med Mutuo Oblig Grp Ser A(15) 6.25% 7/1/2024 AAA 850 896,801
York Cnty PA Hosp Auth Rev
York Hosp(2) 5.25% 7/1/2017 AAA 1,000 1,079,280
--------------
TOTAL 7,288,253
--------------
HOUSING 1.01%
Puerto Rico Hsg Fin Auth Cap
Fd Prog(20) 4.50% 12/1/2023 AA 1,000 1,010,100
--------------
INDUSTRIAL 4.94%
Allegheny Cnty PA Ind Dev
Auth Rev Envr Impt USX Pj 6.10% 7/15/2020 BBB+ 1,000 1,039,690
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
73
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Bradford Cnty PA Ind Dev Auth
Intl Paper Co Pj Ser A AMT 6.60% 3/1/2019 BBB $ 1,250 $ 1,305,312
Philadelphia PA Auth For Ind
Dev Lease Rev Ser B(11) 5.125% 10/1/2026 AAA 1,000 1,047,280
York Cnty PA Ind Dev Auth
Poll Ctrl Rev Svc Elec & Gas Ser A(15) 6.45% 10/1/2019 AAA 1,475 1,542,481
--------------
TOTAL 4,934,763
--------------
LEASE 1.89%
West Middlesex Area Sch Dist
PA Cap Apprec Ser A(11) Zero Coupon 6/15/2032 AAA 935 224,793
York PA Gen Auth Gtd Rev York
City Recreation Corp(2) 5.50% 5/1/2018 AAA 1,475 1,665,260
--------------
TOTAL 1,890,053
--------------
MISCELLANEOUS 5.34%
Allegheny Cnty PA Redev Auth
Tax Inc Rev Wtrfrt Pj Ser A 6.30% 12/15/2018 A-(b) 1,000 1,113,460
Montgomery Cnty PA Ind Dev
Auth Rev Hill Sch Pj(15) 5.35% 8/15/2027 Aaa 2,250 2,376,427
Washington Cnty PA Auth Rev
Cap Fdg Rev Pj & Equip Prog(2) 6.15% 12/1/2029 AAA 1,525 1,844,732
--------------
TOTAL 5,334,619
--------------
PRE-REFUNDED 22.57%
Allegheny Cnty PA Port Auth
Sp Rev Transn(15) 6.00% 3/1/2013 AAA 2,000 2,354,160
Allegheny Cnty PA Port Auth
Sp Rev Transn(15) 6.125% 3/1/2029 AAA 500 591,420
Bethlehem PA Area Sch Dist(15) 6.00% 3/1/2016 AAA 1,000 1,086,180
Childrens TR FD PR TOB 6.00% 7/1/2026 AAA 750 892,620
PA Conv Ctr Auth
Rev Ser A ETM(10) 6.70% 9/1/2016 AAA 855 1,064,843
PA Intergovt Coop Auth
Spl Tax Rev Funding Prog(10) 6.75% 6/15/2021 AAA 2,000 2,135,660
Philadelphia PA Gas Wks Rev
Twelfth Ser B ETM(15) 7.00% 5/15/2020 AAA 2,220 2,849,481
Puerto Rico Comwlth 6.45% 7/1/2017 AAA 1,900 1,953,504
Puerto Rico Comwlth(15)(14) 6.45% 7/1/2017 AAA 700 719,712
Puerto Rico Comwlth Hwy
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 A 1,000 1,104,580
Puerto Rico Elec Pwr Auth Rev Ser X 6.00% 7/1/2015 A- 1,000 1,081,540
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
74
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2004
<Table>
<Caption>
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Elec Pwr Auth Rev Ser X 6.125% 7/1/2021 A- $ 500 $ 541,535
Puerto Rico Elec Pwr Auth
Ser T RIBs(11) 11.472% 7/1/2018 AAA 1,500 1,597,710
Radnor Twp PA Sch Dist 5.75% 3/15/2026 Aa3 1,200 1,338,624
Riverside PA Sch Dist(10) 5.50% 10/15/2020 AAA 1,000 1,158,760
State Pub Sch Bldg Auth PA
Northhampton Area Cmnty Coll(2) 5.75% 3/1/2020 AAA 1,775 2,089,157
--------------
TOTAL 22,559,486
--------------
TRANSPORTATION 18.26%
Allegheny Cnty PA Arpt Rev(15) 5.00% 1/1/2017 AAA 1,000 1,043,160
Delaware River Port Auth PA &
NJ Ref Port Dist Pj Ser A(11) 5.20% 1/1/2027 AAA 1,000 1,054,610
Delaware River Port Auth PA &
NJ Rev(11) 6.00% 1/1/2019 AAA 1,000 1,167,360
PA St Tpk Comm Oil
Franchise Tax Rev Sub-Ser B(15) 5.00% 12/1/2031 AAA 1,000 1,038,750
PA St Tpk Commn(2) 5.50% 7/15/2033 AAA 3,000 3,332,100
Puerto Rico Comwlth Hwy & Ser G(10) 5.25% 7/1/2020 AAA 1,000 1,101,380
Puerto Rico Comwlth Hwy &
Transn Auth Rev PMD Ser B 6.00% 7/1/2026 A 500 524,970
Puerto Rico Comwlth Hwy &
Transn Auth Rev Rites RIBs 9.675% 1/1/2010 NR 2,750 3,502,235
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser D 5.75% 7/1/2041 A 2,000 2,276,580
Puerto Rico Comwlth Hwy
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 A 2,000 2,206,340
Puerto Rico Port Auth Rev Ser D AMT(10) 7.00% 7/1/2014 AAA 1,000 1,006,400
--------------
TOTAL 18,253,885
--------------
WATER/SEWER 4.54%
Allegheny Cnty PA San Auth Swr Rev(15) 5.375% 12/1/2024 AAA 2,000 2,163,240
Bucks Cnty PA Wtr & Swr Auth
Neshaminy Interceptor Swr Sys(2) 5.50% 6/1/2017 Aaa 465 519,893
Bucks Cnty PA Wtr & Swr Auth
Rev Ser A(2) 5.00% 6/1/2024 AAA 1,000 1,040,690
North Huntingdon Township PA(2) 5.25% 4/1/2019 AAA 760 815,503
--------------
TOTAL 4,539,326
--------------
TOTAL MUNICIPAL BONDS (Cost $91,995,645) $ 99,621,571
==============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
75
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
MARCH 31, 2004
(a) This investment has not been rated by an independent ratings service but
is, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the
rating shown.
(b) This investment has been rated by Fitch IBCA.
(c) Security purchased on a when-issued basis.
** Deferred-interest municipals pay no interest for a stipulated number of
years, after which they pay a predetermined interest rate.
# Variable rate security. The interest rate shown is the rate in effect at
March 31, 2004.
+ Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
AMT-Income from this security may be subject to Alternative Minimum Tax.
ETM-Escrow to Maturity.
GTD-Guaranteed.
Pre-refunded Bonds-A second bond has been issued in order to pay off the first
bond issue. Proceeds from the sale of the second bond are held in an
"escrow fund" consisting of U.S. Government debt until the first bond issue
reaches maturity.
PSF-Permanent School Fund.
RIBs-Residual Interest Bond. The interest rate is subject to change periodically
and inversely to the prevailing market rate. The interest rate shown is the
rate in effect at March 31, 2004.
NR-Not Rated.
Insured or guaranteed by the indicated municipal bond insurance corporation or
Federal agency:
(1) American Capital Asset
(2) American Municipal Bond Assurance Corporation
(3) Bond Investors Guaranty
(4) Certificate Bond Insurance
(5) College Construction Loan Insurance Association
(6) Custodian Receipt
(7) Federal Home Loan Mortgage Corporation
(8) Federal Housing Administration
(9) Federal National Mortgage Association
(10) Financial Guaranty Insurance Company
(11) Financial Security Assurance, Inc.
(12) Government National Mortgage Association
(13) Government National Mortgage Association/Federal National Mortgage
Association
(14) Insurance Bond Certificate
(15) Municipal Bond Investors Assurance
(16) Radian Asset Assurance
(17) Temporary Custodian Receipts
(18) Department of Veterans Affairs
(19) XL Capital Assurance, Inc.
(20) Department of Housing and Urban Development
SEE NOTES TO FINANCIAL STATEMENTS.
76
<Page>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
March 31, 2004
<Table>
<Caption>
NATIONAL CALIFORNIA
ASSETS:
Investment in securities, at cost $ 567,285,835 $ 178,700,350
- -----------------------------------------------------------------------------------------------------
Investment in securities, at value $ 603,986,974 $ 190,386,320
Cash 60,397 123,899
Receivables:
Interest and dividends 8,806,191 2,452,593
Investment securities sold 43,038,513 530,153
Capital shares sold 472,355 398,506
Prepaid expenses and other assets 42,764 14,565
- -----------------------------------------------------------------------------------------------------
TOTAL ASSETS 656,407,194 193,906,036
- -----------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 37,772,517 -
Capital shares reacquired 706,346 381,995
Management fees 261,823 81,222
12b-1 distribution fees 291,383 93,253
Fund administration 22,242 6,963
Directors' fees 290,500 171,781
To bank - -
Dividends payable 1,652,034 525,588
Accrued expenses and other liabilities 171,564 123,371
- -----------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 41,168,409 1,384,173
=====================================================================================================
NET ASSETS $ 615,238,785 $ 192,521,863
=====================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 592,995,112 $ 185,402,380
Distributions in excess of net investment income (2,062,861) (403,712)
Accumulated net realized loss on investments (12,394,605) (4,162,775)
Net unrealized appreciation on investments 36,701,139 11,685,970
- -----------------------------------------------------------------------------------------------------
NET ASSETS $ 615,238,785 $ 192,521,863
=====================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 529,154,215 $ 177,108,310
Class B Shares $ 37,731,393 -
Class C Shares $ 48,353,177 $ 15,413,553
OUTSTANDING SHARES BY CLASS:
Class A Shares 45,414,929 16,136,941
Class B Shares 3,231,207 -
Class C Shares 4,144,459 1,403,578
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 11.65 $ 10.98
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 12.04 $ 11.35
Class B Shares-Net asset value $ 11.68 -
Class C Shares-Net asset value $ 11.67 $ 10.98
=====================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
78
<Page>
<Table>
<Caption>
CONNECTICUT HAWAII MINNESOTA
ASSETS:
Investment in securities, at cost $ 87,098,364 $ 65,319,182 $ 36,122,585
- -------------------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 93,368,471 $ 71,231,596 $ 38,107,863
Cash 96,037 - 1,210,723
Receivables:
Interest and dividends 1,431,003 1,019,841 442,352
Investment securities sold - 61,065 473,668
Capital shares sold 475,440 19,165 159,694
Prepaid expenses and other assets 2,194 249 92
- -------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 95,373,145 72,331,916 40,394,392
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased - - -
Capital shares reacquired - 25,402 6,500
Management fees 39,997 24,857 16,738
12b-1 distribution fees 42,050 39,708 -
Fund administration 2,989 2,612 1,420
Directors' fees 25,128 18,332 1,191
To bank - 101,981 -
Dividends payable 276,119 202,983 108,840
Accrued expenses and other liabilities 33,577 23,429 17,660
- -------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 419,860 439,304 152,349
=========================================================================================================================
NET ASSETS $ 94,953,285 $ 71,892,612 $ 40,242,043
=========================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 90,789,563 $ 69,822,315 $ 39,017,784
Distributions in excess of net investment income (223,941) (233,193) (114,713)
Accumulated net realized loss on investments (1,882,444) (3,608,924) (646,306)
Net unrealized appreciation on investments 6,270,107 5,912,414 1,985,278
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 94,953,285 $ 71,892,612 $ 40,242,043
=========================================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 94,953,285 $ 71,892,612 $ 40,242,043
Class B Shares - - -
Class C Shares - - -
OUTSTANDING SHARES BY CLASS:
Class A Shares 8,896,985 13,978,020 7,734,440
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 $ 10.67 $ 5.14 $ 5.20
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 11.03 $ 5.31 $ 5.37
Class B Shares-Net asset value - - -
Class C Shares-Net asset value - - -
=========================================================================================================================
<Caption>
MISSOURI NEW JERSEY
ASSETS:
Investment in securities, at cost $ 141,783,865 $ 136,068,324
- -----------------------------------------------------------------------------------------------------
Investment in securities, at value $ 151,129,182 $ 146,656,656
Cash 858,161 114,893
Receivables:
Interest and dividends 2,138,270 2,127,619
Investment securities sold 6,647,765 2,806,323
Capital shares sold 83,805 157,186
Prepaid expenses and other assets 22,398 23,701
- -----------------------------------------------------------------------------------------------------
TOTAL ASSETS 160,879,581 151,886,378
- -----------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 3,164,385 2,552,444
Capital shares reacquired 68,690 116,611
Management fees 66,559 63,604
12b-1 distribution fees 55,525 70,801
Fund administration 5,662 5,424
Directors' fees 28,074 42,472
To bank - -
Dividends payable 440,948 412,653
Accrued expenses and other liabilities 43,633 56,917
- -----------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 3,873,476 3,320,926
=====================================================================================================
NET ASSETS $ 157,006,105 $ 148,565,452
=====================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 148,593,816 $ 143,991,965
Distributions in excess of net investment income (202,126) (503,611)
Accumulated net realized loss on investments (730,902) (5,511,234)
Net unrealized appreciation on investments 9,345,317 10,588,332
- -----------------------------------------------------------------------------------------------------
NET ASSETS $ 157,006,105 $ 148,565,452
=====================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 157,006,105 $ 148,565,452
Class B Shares - -
Class C Shares - -
OUTSTANDING SHARES BY CLASS:
Class A Shares 29,009,205 28,294,031
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 $ 5.41 $ 5.25
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 5.59 $ 5.43
Class B Shares-Net asset value - -
Class C Shares-Net asset value - -
=====================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<Page>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)(CONTINUED)
March 31, 2004
<Table>
<Caption>
NEW YORK TEXAS
ASSETS:
Investment in securities, at cost $ 241,442,056 $ 71,053,250
- ---------------------------------------------------------------------------------------------------
Investment in securities, at value $ 261,275,551 $ 79,788,402
Cash 70,936 82,882
Receivables:
Interest and dividends 3,639,154 1,285,153
Investment securities sold - -
Capital shares sold 30,942 1,860
From Lord, Abbett & Co. LLC - -
Prepaid expenses and other assets 847 16,208
- ---------------------------------------------------------------------------------------------------
TOTAL ASSETS 265,017,430 81,174,505
- ---------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 4,229,200 -
Capital shares reacquired 288,296 71,564
Management fees 109,875 34,273
12b-1 distribution fees 128,726 68,070
Fund administration 9,358 3,010
Directors'/Trustees' fees 143,119 31,171
Dividends payable 761,651 244,492
Accrued expenses and other liabilities 78,714 30,294
- ---------------------------------------------------------------------------------------------------
Total liabilities 5,748,939 482,874
===================================================================================================
NET ASSETS $ 259,268,491 $ 80,691,631
===================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 244,094,220 $ 75,924,882
Undistributed (distributions in excess of) net
investment income (1,002,118) (175,462)
Accumulated net realized loss on investments (3,657,106) (3,792,941)
Net unrealized appreciation on investments 19,833,495 8,735,152
- ---------------------------------------------------------------------------------------------------
NET ASSETS $ 259,268,491 $ 80,691,631
===================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 245,214,873 $ 80,691,631
Class B Shares - -
Class C Shares $ 14,053,618 -
Class P Shares - -
OUTSTANDING SHARES BY CLASS:
Class A Shares 21,280,501 7,697,260
Class B Shares - -
Class C Shares 1,219,781 -
Class P Shares - -
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 11.52 $ 10.48
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 11.91 $ 10.83
Class B Shares-Net asset value - -
Class C Shares-Net asset value $ 11.52 -
Class P Shares-Net asset value - -
===================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
80
<Page>
<Table>
<Caption>
INSURED
WASHINGTON INTERMEDIATE FLORIDA
ASSETS:
Investment in securities, at cost $ 47,046,233 $ 7,243,582 $ 80,633,033
- ----------------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 50,853,713 $ 7,360,297 $ 87,802,950
Cash 31,490 77,844 93,001
Receivables:
Interest and dividends 751,975 77,339 1,474,235
Investment securities sold 1,129,621 - 2,427,483
Capital shares sold 110,805 10,060 45,281
From Lord, Abbett & Co. LLC - 53,770 -
Prepaid expenses and other assets 159 14,670 53,390
- ----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 52,877,763 7,593,980 91,896,340
- ----------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 736,253 108,212 3,041,640
Capital shares reacquired 103,744 - 376,044
Management fees 22,656 2,688 37,351
12b-1 distribution fees - 4,207 45,571
Fund administration 1,837 239 3,145
Directors'/Trustees' fees 15,774 1,820 38,368
Dividends payable 165,514 11,523 261,494
Accrued expenses and other liabilities 22,934 30,539 37,762
- ----------------------------------------------------------------------------------------------------------------------
Total liabilities 1,068,712 159,228 3,841,375
======================================================================================================================
NET ASSETS $ 51,809,051 $ 7,434,752 $ 88,054,965
======================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 50,096,079 $ 7,368,571 $ 87,869,931
Undistributed (distributions in excess of) net
investment income 355,557 1,756 (149,622)
Accumulated net realized loss on investments (2,450,065) (52,290) (6,835,261)
Net unrealized appreciation on investments 3,807,480 116,715 7,169,917
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 51,809,051 $ 7,434,752 $ 88,054,965
======================================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 51,809,051 $ 4,563,741 $ 81,709,576
Class B Shares - $ 415,580 -
Class C Shares - $ 2,445,242 $ 6,345,389
Class P Shares - $ 10,189 -
OUTSTANDING SHARES BY CLASS:
Class A Shares 9,882,403 455,468 16,634,594
Class B Shares - 41,509 -
Class C Shares - 244,320 1,289,902
Class P Shares - 1,017 -
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 5.24 $ 10.02 $ 4.91
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 5.42 $ 10.36 $ 5.07
Class B Shares-Net asset value - $ 10.01 -
Class C Shares-Net asset value - $ 10.01 $ 4.92
Class P Shares-Net asset value - $ 10.02 -
======================================================================================================================
<Caption>
GEORGIA MICHIGAN PENNSYLVANIA
ASSETS:
Investment in securities, at cost $ 85,968,763 $ 64,720,606 $ 91,995,645
- ----------------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 91,078,042 $ 70,304,372 $ 99,621,571
Cash 711,824 1,172,004 258,993
Receivables:
Interest and dividends 1,403,576 1,224,770 1,398,808
Investment securities sold 105,834 1,454,888 987,775
Capital shares sold 499,588 283,798 280,570
From Lord, Abbett & Co. LLC - - -
Prepaid expenses and other assets 236 197 2,605
- ----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 93,799,100 74,440,029 102,550,322
- ----------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased - 989,200 2,048,254
Capital shares reacquired 18,530 20,507 119,397
Management fees 39,107 30,843 42,249
12b-1 distribution fees - - 46,999
Fund administration 3,329 2,612 3,594
Directors'/Trustees' fees 825 8,853 19,641
Dividends payable 260,685 208,817 288,209
Accrued expenses and other liabilities 35,529 35,291 42,283
- ----------------------------------------------------------------------------------------------------------------------
Total liabilities 358,005 1,296,123 2,610,626
======================================================================================================================
NET ASSETS $ 93,441,095 $ 73,143,906 $ 99,939,696
======================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 88,382,123 $ 69,583,533 $ 93,628,509
Undistributed (distributions in excess of) net
investment income 87,476 (183,540) (289,172)
Accumulated net realized loss on investments (137,783) (1,839,853) (1,025,567)
Net unrealized appreciation on investments 5,109,279 5,583,766 7,625,926
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 93,441,095 $ 73,143,906 $ 99,939,696
======================================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 93,441,095 $ 73,143,906 $ 99,939,696
Class B Shares - - -
Class C Shares - - -
Class P Shares - - -
OUTSTANDING SHARES BY CLASS:
Class A Shares 16,366,706 13,534,483 18,668,598
Class B Shares - - -
Class C Shares - - -
Class P Shares - - -
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 5.71 $ 5.40 $ 5.35
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 5.90 $ 5.58 $ 5.53
Class B Shares-Net asset value - - -
Class C Shares-Net asset value - - -
Class P Shares-Net asset value - - -
======================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
81
<Page>
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended March 31, 2004
<Table>
<Caption>
NATIONAL CALIFORNIA
INVESTMENT INCOME:
Interest $ 15,321,183 $ 4,608,260
Dividends 56,360 5,023
- -----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 15,377,543 4,613,283
- -----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 1,529,586 480,799
12b-1 distribution plan-Class A 920,578 317,203
12b-1 distribution plan-Class B 192,179 -
12b-1 distribution plan-Class C 244,257 77,597
Shareholder servicing 166,609 46,634
Professional 47,972 17,749
Reports to shareholders 29,330 9,194
Fund administration 122,367 38,464
Custody 17,552 6,420
Directors' fees 6,891 2,253
Registration 26,075 3,084
Other 71,478 10,947
- -----------------------------------------------------------------------------------------------------
Gross expenses 3,374,874 1,010,344
Expense reductions (2,795) (1,077)
- -----------------------------------------------------------------------------------------------------
NET EXPENSES 3,372,079 1,009,267
- -----------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 12,005,464 3,604,016
- -----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investments 3,421,622 306,263
Net change in unrealized appreciation/depreciation
on investments 4,753,831 3,107,869
=====================================================================================================
NET REALIZED AND UNREALIZED GAIN 8,175,453 3,414,132
=====================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 20,180,917 $ 7,018,148
=====================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
82
<Page>
<Table>
<Caption>
CONNECTICUT HAWAII MINNESOTA
INVESTMENT INCOME:
Interest $ 2,374,839 $ 1,849,314 $ 879,333
Dividends 1,759 - -
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 2,376,598 1,849,314 879,333
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 237,196 183,132 96,436
12b-1 distribution plan-Class A 168,732 139,456 -
12b-1 distribution plan-Class B - - -
12b-1 distribution plan-Class C - - -
Shareholder servicing 22,683 17,518 11,996
Professional 9,983 8,453 6,194
Reports to shareholders 4,498 3,444 1,846
Fund administration 18,976 14,651 7,715
Custody 2,946 2,623 751
Directors' fees 1,047 736 234
Registration 3,489 1,450 1,500
Other 6,961 5,347 4,814
- -------------------------------------------------------------------------------------------------------------------------
Gross expenses 476,511 376,810 131,486
Expense reductions (494) (1,735) (914)
- -------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 476,017 375,075 130,572
- -------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,900,581 1,474,239 748,761
- -------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investments 166,531 57,445 56,698
Net change in unrealized appreciation/depreciation
on investments 987,609 760,803 398,047
=========================================================================================================================
NET REALIZED AND UNREALIZED GAIN 1,154,140 818,248 454,745
=========================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 3,054,721 $ 2,292,487 $ 1,203,506
=========================================================================================================================
<Caption>
MISSOURI NEW JERSEY
INVESTMENT INCOME:
Interest $ 3,816,003 $ 3,942,733
Dividends - 4,125
- -----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 3,816,003 3,946,858
- -----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 387,615 381,232
12b-1 distribution plan-Class A 283,208 278,297
12b-1 distribution plan-Class B - -
12b-1 distribution plan-Class C - -
Shareholder servicing 46,571 43,754
Professional 14,806 14,792
Reports to shareholders 7,401 7,332
Fund administration 31,009 30,499
Custody 4,336 4,945
Directors' fees 1,287 1,722
Registration 4,119 3,000
Other 6,760 11,780
- -----------------------------------------------------------------------------------------------------
Gross expenses 787,112 777,353
Expense reductions (4,991) (784)
- -----------------------------------------------------------------------------------------------------
NET EXPENSES 782,121 776,569
- -----------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,033,882 3,170,289
- -----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investments 193,795 219,968
Net change in unrealized appreciation/depreciation
on investments 1,452,680 1,251,788
=====================================================================================================
NET REALIZED AND UNREALIZED GAIN 1,646,475 1,471,756
=====================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,680,357 $ 4,642,045
=====================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
83
<Page>
STATEMENTS OF OPERATIONS (UNAUDITED)(CONTINUED)
For the Six Months Ended March 31, 2004
<Table>
<Caption>
NEW YORK TEXAS
INVESTMENT INCOME:
Interest $ 6,767,957 $ 2,103,400
Dividends 13,816 5,480
- ---------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 6,781,773 2,108,880
- ---------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 649,135 200,077
12b-1 distribution plan-Class A 434,762 146,050
12b-1 distribution plan-Class B - -
12b-1 distribution plan-Class C 66,238 -
12b-1 distribution plan-Class P - -
Shareholder servicing 69,564 20,493
Professional 22,516 9,332
Reports to shareholders 12,400 3,834
Fund administration 51,931 16,006
Custody 7,189 3,038
Directors'/Trustees' fees 2,642 835
Registration 3,549 2,750
Offering - -
Other 21,265 8,739
- ---------------------------------------------------------------------------------------------------
Gross expenses 1,341,191 411,154
Expense reductions (1,512) (453)
12b-1 distribution plan-Class A reimbursement - -
Expenses assumed by Lord, Abbett & Co. LLC - -
Management fee waived - -
- ---------------------------------------------------------------------------------------------------
NET EXPENSES 1,339,679 410,701
- ---------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 5,442,094 1,698,179
- ---------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments 292,479 94,771
Net change in unrealized appreciation/depreciation
on investments 2,161,150 872,461
===================================================================================================
NET REALIZED AND UNREALIZED GAIN 2,453,629 967,232
===================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,895,723 $ 2,665,411
===================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
84
<Page>
<Table>
<Caption>
INSURED
WASHINGTON INTERMEDIATE FLORIDA
INVESTMENT INCOME:
Interest $ 1,294,686 $ 85,561 $ 2,199,581
Dividends 4,277 451 4,686
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,298,963 86,012 2,204,267
- ----------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 127,519 13,498 210,424
12b-1 distribution plan-Class A - 7,655 131,617
12b-1 distribution plan-Class B - 1,850 -
12b-1 distribution plan-Class C - 6,474 32,647
12b-1 distribution plan-Class P - 23 -
Shareholder servicing 16,805 383 23,781
Professional 7,168 21,012 16,021
Reports to shareholders 2,436 320 3,972
Fund administration 10,201 1,200 16,834
Custody 2,393 1,022 4,056
Directors'/Trustees' fees 471 1,219 984
Registration 3,492 14,757 1,071
Offering - 32,443 -
Other 8,942 5,296 3,781
- ----------------------------------------------------------------------------------------------------------------------
Gross expenses 179,427 107,152 445,188
Expense reductions (376) (159) (469)
12b-1 distribution plan-Class A reimbursement - (2,172) -
Expenses assumed by Lord, Abbett & Co. LLC - (77,493) -
Management fee waived - (13,498) -
- ----------------------------------------------------------------------------------------------------------------------
NET EXPENSES 179,051 13,830 444,719
- ----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,119,912 72,182 1,759,548
- ----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments 40,031 22,378 740,507
Net change in unrealized appreciation/depreciation
on investments 342,808 30,756 (260,740)
======================================================================================================================
NET REALIZED AND UNREALIZED GAIN 382,839 53,134 479,767
======================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,502,751 $ 125,316 $ 2,239,315
======================================================================================================================
<Caption>
GEORGIA MICHIGAN PENNSYLVANIA
INVESTMENT INCOME:
Interest $ 2,101,760 $ 1,731,333 $ 2,575,570
Dividends - - -
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 2,101,760 1,731,333 2,575,570
- ----------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 221,132 178,743 249,964
12b-1 distribution plan-Class A - - 152,657
12b-1 distribution plan-Class B - - -
12b-1 distribution plan-Class C - - -
12b-1 distribution plan-Class P - - -
Shareholder servicing 25,212 25,651 30,925
Professional 16,592 14,133 18,766
Reports to shareholders 4,250 3,472 4,776
Fund administration 17,690 14,299 19,997
Custody 1,783 1,366 1,806
Directors'/Trustees' fees 499 444 980
Registration 1,250 2,084 2,127
Offering - - -
Other 7,628 403 2,287
- ----------------------------------------------------------------------------------------------------------------------
Gross expenses 296,036 240,595 484,285
Expense reductions (2,153) (1,669) (2,232)
12b-1 distribution plan-Class A reimbursement - - -
Expenses assumed by Lord, Abbett & Co. LLC - - -
Management fee waived - - -
- ----------------------------------------------------------------------------------------------------------------------
NET EXPENSES 293,883 238,926 482,053
- ----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,807,877 1,492,407 2,093,517
- ----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments 13,846 66,915 37,723
Net change in unrealized appreciation/depreciation
on investments 1,225,523 550,696 1,491,201
======================================================================================================================
NET REALIZED AND UNREALIZED GAIN 1,239,369 617,611 1,528,924
======================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 3,047,246 $ 2,110,018 $ 3,622,441
======================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
85
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
For the Six Months Ended March 31, 2004
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NATIONAL CALIFORNIA
OPERATIONS:
Net investment income $ 12,005,464 $ 3,604,016
Net realized gain on investments 3,421,622 306,263
Net change in unrealized appreciation/depreciation on
investments 4,753,831 3,107,869
- -----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 20,180,917 7,018,148
=====================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (10,727,892) (3,601,377)
Class B (660,344) -
Class C (844,729) (266,802)
- -----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (12,232,965) (3,868,179)
=====================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 35,360,163 10,727,943
Reinvestment of distributions 8,167,721 2,207,674
Cost of shares reacquired (40,526,712) (17,902,790)
- -----------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 3,001,172 (4,967,173)
=====================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 10,949,124 (1,817,204)
=====================================================================================================
NET ASSETS:
Beginning of period 604,289,661 194,339,067
- -----------------------------------------------------------------------------------------------------
END OF PERIOD $ 615,238,785 $ 192,521,863
=====================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (2,062,861) $ (403,712)
=====================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
86
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS CONNECTICUT HAWAII MINNESOTA
OPERATIONS:
Net investment income $ 1,900,581 $ 1,474,239 $ 748,761
Net realized gain on investments 166,531 57,445 56,698
Net change in unrealized appreciation/depreciation on
investments 987,609 760,803 398,047
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,054,721 2,292,487 1,203,506
=========================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,959,623) (1,454,946) (748,564)
Class B - - -
Class C - - -
- -------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,959,623) (1,454,946) (748,564)
=========================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 2,893,784 882,624 4,621,755
Reinvestment of distributions 1,008,173 827,353 631,021
Cost of shares reacquired (6,513,090) (5,771,839) (2,481,424)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS (2,611,133) (4,061,862) 2,771,352
=========================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (1,516,035) (3,224,321) 3,226,294
=========================================================================================================================
NET ASSETS:
Beginning of period 96,469,320 75,116,933 37,015,749
- -------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 94,953,285 $ 71,892,612 $ 40,242,043
=========================================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (223,941) $ (233,193) $ (114,713)
=========================================================================================================================
<Caption>
INCREASE (DECREASE) IN NET ASSETS MISSOURI NEW JERSEY
OPERATIONS:
Net investment income $ 3,033,882 $ 3,170,289
Net realized gain on investments 193,795 219,968
Net change in unrealized appreciation/depreciation on
investments 1,452,680 1,251,788
- -----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,680,357 4,642,045
=====================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (3,064,665) (3,233,947)
Class B - -
Class C - -
- -----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (3,064,665) (3,233,947)
=====================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 11,064,429 6,099,562
Reinvestment of distributions 2,525,585 1,914,142
Cost of shares reacquired (11,687,679) (14,653,372)
- -----------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 1,902,335 (6,639,668)
=====================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 3,518,027 (5,231,570)
=====================================================================================================
NET ASSETS:
Beginning of period 153,488,078 153,797,022
- -----------------------------------------------------------------------------------------------------
END OF PERIOD $ 157,006,105 $ 148,565,452
=====================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (202,126) $ (503,611)
=====================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)(CONTINUED)
For the Six Months Ended March 31, 2004
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NEW YORK TEXAS
OPERATIONS:
Net investment income $ 5,442,094 $ 1,698,179
Net realized gain on investments 292,479 94,771
Net change in unrealized appreciation/depreciation
on investments 2,161,150 872,461
- ---------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 7,895,723 2,665,411
===================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (5,282,687) (1,684,463)
Class B - -
Class C (241,287) -
Class P - -
- ---------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (5,523,974) (1,684,463)
===================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 9,196,960 3,082,820
Reinvestment of distributions 3,332,333 1,229,365
Cost of shares reacquired (15,164,648) (3,786,986)
- ---------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS (2,635,355) 525,199
===================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (263,606) 1,506,147
===================================================================================================
NET ASSETS:
Beginning of period 259,532,097 79,185,484
- ---------------------------------------------------------------------------------------------------
END OF PERIOD $ 259,268,491 $ 80,691,631
===================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ (1,002,118) $ (175,462)
===================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
88
<Page>
<Table>
<Caption>
INSURED
INCREASE (DECREASE) IN NET ASSETS WASHINGTON INTERMEDIATE FLORIDA
OPERATIONS:
Net investment income $ 1,119,912 $ 72,182 $ 1,759,548
Net realized gain on investments 40,031 22,378 740,507
Net change in unrealized appreciation/depreciation
on investments 342,808 30,756 (260,740)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,502,751 125,316 2,239,315
======================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,150,811) (56,932) (1,625,239)
Class B - (3,502) -
Class C - (11,527) (116,193)
Class P - (123) -
- ----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,150,811) (72,084) (1,741,432)
======================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 3,147,295 4,119,281 9,072,513
Reinvestment of distributions 841,840 55,523 783,990
Cost of shares reacquired (3,028,589) (1,101,049) (7,091,312)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 960,546 3,073,755 2,765,191
======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 1,312,486 3,126,987 3,263,074
======================================================================================================================
NET ASSETS:
Beginning of period 50,496,565 4,307,765 84,791,891
- ----------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 51,809,051 $ 7,434,752 $ 88,054,965
======================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ 355,557 $ 1,756 $ (149,622)
======================================================================================================================
<Caption>
INCREASE (DECREASE) IN NET ASSETS GEORGIA MICHIGAN PENNSYLVANIA
OPERATIONS:
Net investment income $ 1,807,877 $ 1,492,407 $ 2,093,517
Net realized gain on investments 13,846 66,915 37,723
Net change in unrealized appreciation/depreciation
on investments 1,225,523 550,696 1,491,201
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,047,246 2,110,018 3,622,441
======================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,761,642) (1,447,917) (2,038,747)
Class B - - -
Class C - - -
Class P - - -
- ----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,761,642) (1,447,917) (2,038,747)
======================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 13,762,536 8,719,140 3,979,142
Reinvestment of distributions 1,469,953 1,001,627 1,075,789
Cost of shares reacquired (8,517,645) (5,528,535) (5,978,551)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 6,714,844 4,192,232 (923,620)
======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 8,000,448 4,854,333 660,074
======================================================================================================================
NET ASSETS:
Beginning of period 85,440,647 68,289,573 99,279,622
- ----------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 93,441,095 $ 73,143,906 $ 99,939,696
======================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ 87,476 $ (183,540) $ (289,172)
======================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended September 30, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NATIONAL CALIFORNIA
OPERATIONS:
Net investment income $ 25,745,981 $ 8,446,940
Net realized loss on investments (3,633,689) (1,186,273)
Net change in unrealized appreciation/depreciation
on investments (7,999,689) (5,697,202)
- -----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 14,112,603 1,563,465
=====================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (23,106,774) (8,268,393)
Class B (1,475,958) -
Class C (1,798,412) (602,949)
- -----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (26,381,144) (8,871,342)
=====================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 87,871,238 21,862,214
Reinvestment of distributions 17,228,752 4,746,343
Cost of shares reacquired (100,082,141) (31,432,216)
- -----------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 5,017,849 (4,823,659)
=====================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (7,250,692) (12,131,536)
=====================================================================================================
NET ASSETS:
Beginning of year 611,540,353 206,470,603
- -----------------------------------------------------------------------------------------------------
END OF YEAR $ 604,289,661 $ 194,339,067
=====================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (1,835,360) $ (139,549)
=====================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
90
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS CONNECTICUT HAWAII MINNESOTA
OPERATIONS:
Net investment income $ 4,287,858 $ 3,198,874 $ 1,260,262
Net realized loss on investments (337,794) (1,515,044) (135,034)
Net change in unrealized appreciation/depreciation
on investments (1,137,773) (307,015) (12,332)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,812,291 1,376,815 1,112,896
=========================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (4,356,708) (3,177,488) (1,329,120)
Class B - - -
Class C - - -
- -------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (4,356,708) (3,177,488) (1,329,120)
=========================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 8,277,443 5,689,315 13,529,899
Reinvestment of distributions 2,133,051 1,718,249 1,074,347
Cost of shares reacquired (12,755,193) (10,478,031) (4,940,488)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS (2,344,699) (3,070,467) 9,663,758
=========================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (3,889,116) (4,871,140) 9,447,534
=========================================================================================================================
NET ASSETS:
Beginning of year 100,358,436 79,988,073 27,568,215
- -------------------------------------------------------------------------------------------------------------------------
END OF YEAR $ 96,469,320 $ 75,116,933 $ 37,015,749
=========================================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (164,899) $ (252,486) $ (114,910)
=========================================================================================================================
<Caption>
INCREASE (DECREASE) IN NET ASSETS MISSOURI NEW JERSEY
OPERATIONS:
Net investment income $ 6,226,404 $ 7,161,752
Net realized loss on investments (64,372) (2,262,823)
Net change in unrealized appreciation/depreciation
on investments (1,636,391) (2,907,312)
- -----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,525,641 1,991,617
=====================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (6,009,033) (7,202,044)
Class B - -
Class C - -
- -----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (6,009,033) (7,202,044)
=====================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 21,797,533 12,943,621
Reinvestment of distributions 4,742,370 4,120,036
Cost of shares reacquired (16,574,053) (22,789,599)
- -----------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 9,965,850 (5,725,942)
=====================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 8,482,458 (10,936,369)
=====================================================================================================
NET ASSETS:
Beginning of year 145,005,620 164,733,391
- -----------------------------------------------------------------------------------------------------
END OF YEAR $ 153,488,078 $ 153,797,022
=====================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (171,343) $ (439,953)
=====================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
For the Year Ended September 30, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NEW YORK TEXAS
OPERATIONS:
Net investment income $ 11,559,707 $ 3,547,636
Net realized loss on investments (106,572) (545,423)
Net change in unrealized appreciation/depreciation
on investments (4,912,170) (462,922)
- --------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 6,540,965 2,539,291
==================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (11,283,897) (3,451,579)
Class B - -
Class C (421,949) -
Class P - -
Net realized gain
Class A - -
- --------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (11,705,846) (3,451,579)
==================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 39,026,822 5,794,790
Reinvestment of distributions 6,958,868 2,443,223
Cost of shares reacquired (42,918,061) (9,508,780)
- --------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 3,067,629 (1,270,767)
==================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (2,097,252) (2,183,055)
==================================================================================================
NET ASSETS:
Beginning of period 261,629,349 81,368,539
- --------------------------------------------------------------------------------------------------
END OF PERIOD $ 259,532,097 $ 79,185,484
==================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ (920,238) $ (189,178)
==================================================================================================
</Table>
* For the period June 23, 2003 (commencement of investment operations) to
September 30, 2003.
SEE NOTES TO FINANCIAL STATEMENTS.
92
<Page>
<Table>
<Caption>
INSURED
INCREASE (DECREASE) IN NET ASSETS WASHINGTON INTERMEDIATE* FLORIDA
OPERATIONS:
Net investment income $ 2,326,760 $ 18,565 $ 3,745,773
Net realized loss on investments (536,677) (74,668) (1,142,594)
Net change in unrealized appreciation/depreciation
on investments (528,302) 85,959 (558,447)
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,261,781 29,856 2,044,732
====================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (2,382,580) (17,525) (3,594,847)
Class B - (538) -
Class C - (1,178) (226,244)
Class P - (60) -
Net realized gain
Class A - - -
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (2,382,580) (19,301) (3,821,091)
====================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 7,523,395 4,290,634 8,839,350
Reinvestment of distributions 1,662,262 11,784 1,593,473
Cost of shares reacquired (6,616,919) (5,208) (14,116,455)
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 2,568,738 4,297,210 (3,683,632)
====================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 1,447,939 4,307,765 (5,459,991)
====================================================================================================================
NET ASSETS:
Beginning of period 49,048,626 - 90,251,882
- --------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 50,496,565 $ 4,307,765 $ 84,791,891
====================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ 386,456 $ 1,658 $ (167,738)
====================================================================================================================
<Caption>
INCREASE (DECREASE) IN NET ASSETS GEORGIA MICHIGAN PENNSYLVANIA
OPERATIONS:
Net investment income $ 3,339,308 $ 2,786,104 $ 4,365,250
Net realized loss on investments (151,629) (128,687) (299,948)
Net change in unrealized appreciation/depreciation
on investments (636,285) (587,723) (1,645,092)
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,551,394 2,069,694 2,420,210
====================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (3,203,266) (2,853,218) (4,360,779)
Class B - - -
Class C - - -
Class P - - -
Net realized gain
Class A (214,585) - -
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (3,417,851) (2,853,218) (4,360,779)
====================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 29,415,648 19,167,974 9,858,382
Reinvestment of distributions 2,740,742 1,886,197 2,139,148
Cost of shares reacquired (15,685,717) (10,612,775) (12,279,254)
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 16,470,673 10,441,396 (281,724)
====================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 15,604,216 9,657,872 (2,222,293)
====================================================================================================================
NET ASSETS:
Beginning of period 69,836,431 58,631,701 101,501,915
- --------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 85,440,647 $ 68,289,573 $ 99,279,622
====================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME $ 41,241 $ (228,030) $ (343,942)
====================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
93
<Page>
FINANCIAL HIGHLIGHTS
NATIONAL TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.50 $ 11.73 $ 11.33 $ 10.76 $ 10.79 $ 11.98
=========== =========== =========== =========== =========== ===========
Investment operations
Net investment income .23(a) .50(a) .54(a) .53(a) .51(a) .59
Net realized and
unrealized gain (loss) .16 (.22) .40 .59 .01 (1.03)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .39 .28 .94 1.12 .52 (.44)
----------- ----------- ----------- ----------- ----------- -----------
Distributions to
shareholders from:
Net investment income (.24) (.51) (.54) (.55) (.55) (.56)
Net realized gain - - - - - (.19)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions (.24) (.51) (.54) (.55) (.55) (.75)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 11.65 $ 11.50 $ 11.73 $ 11.33 $ 10.76 $ 10.79
=========== =========== =========== =========== =========== ===========
Total Return(b) 3.40%(c) 2.48% 8.57% 10.64% 5.02% (3.85)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense
reductions .51%(c) .98% 1.03% 1.01% .98% .95%
Expenses, excluding expense
reductions .51%(c) .98% 1.04% 1.06% .99% .95%
Net investment income 2.00%(c) 4.33% 4.74% 4.78% 4.85% 5.10%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 529,154 $ 515,694 $ 530,563 $ 512,426 $ 487,188 $ 542,601
Portfolio turnover rate 82.60% 209.07% 63.74% 77.46% 185.25% 254.13%
================================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
94
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
NATIONAL TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.53 $ 11.76 $ 11.36 $ 10.79 $ 10.82 $ 11.98
=========== =========== =========== =========== =========== ===========
Investment operations
Net investment income .20(a) .42(a) .47(a) .46(a) .44(a) .51
Net realized and
unrealized gain (loss) .15 (.21) .40 .60 .01 (.99)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .35 .21 .87 1.06 .45 (.48)
----------- ----------- ----------- ----------- ----------- -----------
Distributions to
shareholders from:
Net investment income (.20) (.44) (.47) (.49) (.48) (.49)
Net realized gain - - - - - (.19)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions (.20) (.44) (.47) (.49) (.48) (.68)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 11.68 $ 11.53 $ 11.76 $ 11.36 $ 10.79 $ 10.82
=========== =========== =========== =========== =========== ===========
Total Return(b) 3.06%(c) 1.86% 7.88% 9.96% 4.32% (4.30)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense
reductions .83%(c) 1.63% 1.65% 1.64% 1.63% 1.54%
Expenses, excluding expense
reductions .83%(c) 1.63% 1.66% 1.69% 1.63% 1.54%
Net investment income 1.68%(c) 3.68% 4.12% 4.15% 4.15% 4.41%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 37,732 $ 39,122 $ 36,250 $ 28,531 $ 17,594 $ 16,053
Portfolio turnover rate 82.60% 209.07% 63.74% 77.46% 185.25% 254.13%
==============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
95
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
NATIONAL TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.52 $ 11.76 $ 11.35 $ 10.77 $ 10.81 $ 11.99
=========== =========== =========== =========== =========== ===========
Investment operations
Net investment income .20(a) .42(a) .47(a) .46(a) .45(a) .50
Net realized and
unrealized gain (loss) .15 (.22) .41 .60 (.01) (1.01)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .35 .20 .88 1.06 .44 (.51)
----------- ----------- ----------- ----------- ----------- -----------
Distributions to
shareholders from:
Net investment income (.20) (.44) (.47) (.48) (.48) (.48)
Net realized gain - - - - - (.19)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions (.20) (.44) (.47) (.48) (.48) (.67)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 11.67 $ 11.52 $ 11.76 $ 11.35 $ 10.77 $ 10.81
=========== =========== =========== =========== =========== ===========
Total Return(b) 3.07%(c) 1.80% 7.95% 10.04% 4.23% (4.45)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense
reductions .83%(c) 1.63% 1.61% 1.68% 1.63% 1.63%
Expenses, excluding expense
reductions .83%(c) 1.63% 1.62% 1.73% 1.64% 1.63%
Net investment income 1.68%(c) 3.68% 4.16% 4.11% 4.19% 4.38%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 48,353 $ 49,474 $ 44,727 $ 37,803 $ 34,999 $ 38,409
Portfolio turnover rate 82.60% 209.07% 63.74% 77.46% 185.25% 254.13%
==============================================================================================================================
</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
CALIFORNIA TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.80 $ 11.19 $ 10.89 $ 10.29 $ 10.16 $ 11.12
=========== =========== =========== =========== =========== ===========
Investment operations
Net investment income .21(a) .46(a) .52(a) .51(a) .53(a) .54
Net realized and
unrealized gain (loss) .19 (.36) .29 .61 .12 (.98)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .40 .10 .81 1.12 .65 (.44)
----------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders
from net investment income (.22) (.49) (.51) (.52) (.52) (.52)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 10.98 $ 10.80 $ 11.19 $ 10.89 $ 10.29 $ 10.16
=========== =========== =========== =========== =========== ===========
Total Return(b) 3.76%(c) .94% 7.65% 11.09% 6.62% (4.09)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense
reductions .50%(c) .99% 1.03% 1.00% .94% .93%
Expenses, excluding expense
reductions .50%(c) .99% 1.04% 1.04% .94% .93%
Net investment income 1.90%(c) 4.27% 4.82% 4.81% 5.30% 4.96%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 177,108 $ 178,156 $ 192,181 $ 192,624 $ 186,041 $ 207,113
Portfolio turnover rate 23.64% 86.47% 45.31% 72.84% 100.22% 185.43%
==============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
97
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
CALIFORNIA TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.80 $ 11.20 $ 10.91 $ 10.30 $ 10.16 $ 11.12
=========== =========== =========== =========== =========== ===========
Investment operations
Net investment income .17(a) .39(a) .46(a) .45(a) .47(a) .46
Net realized and
unrealized gain (loss) .20 (.37) .27 .61 .12 (.98)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .37 .02 .73 1.06 .59 (.52)
----------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders
from net investment income (.19) (.42) (.44) (.45) (.45) (.44)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 10.98 $ 10.80 $ 11.20 $ 10.91 $ 10.30 $ 10.16
=========== =========== =========== =========== =========== ===========
Total Return(b) 3.43%(c) .26% 6.94% 10.53% 6.02% (4.77)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense
reductions .82%(c) 1.63% 1.61% 1.55% 1.55% 1.60%
Expenses, excluding expense
reductions .82%(c) 1.63% 1.62% 1.59% 1.55% 1.60%
Net investment income 1.58%(c) 3.63% 4.22% 4.26% 4.70% 4.28%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 15,414 $ 16,183 $ 14,290 $ 11,591 $ 10,646 $ 12,767
Portfolio turnover rate 23.64% 86.47% 45.31% 72.84% 100.22% 185.43%
==============================================================================================================================
</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.
98
<Page>
FINANCIAL HIGHLIGHTS
CONNECTICUT TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.55 $ 10.71 $ 10.32 $ 9.79 $ 9.89 $ 10.73
=========== =========== =========== =========== =========== ===========
Investment operations
Net investment income .21(a) .46(a) .50(a) .49(a) .49(a) .54
Net realized and
unrealized gain (loss) .13 (.16) .38 .53 (.08) (.86)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .34 .30 .88 1.02 .41 (.32)
----------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders
from net investment income (.22) (.46) (.49) (.49) (.51) (.52)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 10.67 $ 10.55 $ 10.71 $ 10.32 $ 9.79 $ 9.89
=========== =========== =========== =========== =========== ===========
Total Return(b) 3.25%(c) 2.95% 8.79% 10.65% 4.32% (3.04)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense
reductions .50%(c) 1.01% 1.03% 1.01% 1.02% .95%
Expenses, excluding expense
reductions .50%(c) 1.01% 1.04% 1.03% 1.02% .95%
Net investment income 2.00%(c) 4.33% 4.82% 4.85% 5.10% 5.12%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 94,953 $ 96,469 $ 100,358 $ 101,242 $ 96,901 $ 111,758
Portfolio turnover rate 6.08% 41.50% 48.64% 21.52% 37.92% 53.76%
==============================================================================================================================
</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
HAWAII TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.08 $ 5.20 $ 5.01 $ 4.83 $ 4.84 $ 5.25
=========== =========== =========== =========== =========== ===========
Investment operations
Net investment income .10(a) .21(a) .23(a) .22(a) .24(a) .26
Net realized and
unrealized gain (loss) .06 (.12) .20 .20 (.01) (.43)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .16 .09 .43 .42 .23 (.17)
----------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders
from net investment income (.10) (.21) (.24) (.24) (.24) (.24)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 5.14 $ 5.08 $ 5.20 $ 5.01 $ 4.83 $ 4.84
=========== =========== =========== =========== =========== ===========
Total Return(b) 3.22%(c) 1.86% 8.78% 8.88% 4.94% (3.31)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense
reductions .51%(c) .99% 1.05% 1.04% .99% .97%
Expenses, excluding expense
reductions .51%(c) 1.00% 1.06% 1.07% .99% .97%
Net investment income 2.01%(c) 4.20% 4.60% 4.49% 5.03% 5.03%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 71,893 $ 75,117 $ 79,988 $ 71,022 $ 70,190 $ 71,619
Portfolio turnover rate 2.25% 27.90% 30.99% 32.38% 30.06% 27.63%
==============================================================================================================================
</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.
100
<Page>
FINANCIAL HIGHLIGHTS
MINNESOTA TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.14 $ 5.18 $ 5.00 $ 4.76 $ 4.78 $ 5.18
======== ======== ======== ========= ======== ========
Investment operations
Net investment income .10(a) .21(a) .24(a) .25(a) .23(a) .27
Net realized and
unrealized gain (loss) .06 (.03) .18 .24 .01 (.41)
-------- -------- -------- --------- -------- --------
Total from investment
operations .16 .18 .42 .49 .24 (.14)
-------- -------- -------- --------- -------- --------
Distributions to shareholders
from net investment income (.10) (.22) (.24) (.25) (.26) (.26)
-------- -------- -------- --------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 5.20 $ 5.14 $ 5.18 $ 5.00 $ 4.76 $ 4.78
======== ======== ======== ========= ======== ========
Total Return(b) 3.15%(c) 3.57% 8.56% 10.57% 5.32% (2.72)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver
and expense reductions .34%(c) .69% .46% .19% .24% .23%
Expenses, excluding waiver
and expense reductions .34%(c) .72% .75% .82% .74% .73%
Net investment income 1.94%(c) 4.03% 4.79% 5.16% 5.00% 5.43%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 40,242 $ 37,016 $ 27,568 $ 24,708 $ 20,864 $ 19,843
Portfolio turnover rate 18.21% 35.15% 22.33% 24.34% 50.37% 22.87%
============================================================================================================
</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.
101
<Page>
FINANCIAL HIGHLIGHTS
MISSOURI TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.36 $ 5.41 $ 5.25 $ 4.96 $ 4.99 $ 5.36
======== ======== ======== ========= ======== ========
Investment operations
Net investment income .11(a) .22(a) .23(a) .25(a) .24(a) .25
Net realized and
unrealized gain (loss) .05 (.05) .16 .29 (.02) (.37)
-------- -------- -------- --------- -------- --------
Total from investment
operations .16 .17 .39 .54 .22 (.12)
-------- -------- -------- --------- -------- --------
Distributions to shareholders
from net investment income (.11) (.22) (.23) (.25) (.25) (.25)
-------- -------- -------- --------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 5.41 $ 5.36 $ 5.41 $ 5.25 $ 4.96 $ 4.99
======== ======== ======== ========= ======== ========
Total Return(b) 2.95%(c) 3.18% 7.67% 11.11% 4.63% (2.25)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver
and expense reductions .50%(c) 1.00% 1.03% .89% 1.02% .99%
Expenses, excluding waiver
and expense reductions .50%(c) 1.01% 1.06% 1.08% 1.02% .99%
Net investment income 1.96%(c) 4.19% 4.44% 4.80% 4.98% 4.84%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ----------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 157,006 $ 153,488 $ 145,006 $ 130,122 $ 120,058 $ 125,775
Portfolio turnover rate 15.81% 48.47% 80.04% 43.75% 43.30% 78.85%
=============================================================================================================
</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.
102
<Page>
FINANCIAL HIGHLIGHTS
NEW JERSEY TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.20 $ 5.37 $ 5.21 $ 4.96 $ 4.97 $ 5.54
======== ======== ======== ========= ======== ========
Investment operations
Net investment income .11(a) .24(a) .25(a) .25(a) .25(a) .27
Net realized and
unrealized gain (loss) .05 (.17) .15 .26 -(d) (.47)
-------- -------- -------- --------- -------- --------
Total from investment
operations .16 .07 .40 .51 .25 (.20)
-------- -------- -------- --------- -------- --------
Distributions to
shareholders from:
Net investment income (.11) (.24) (.24) (.26) (.26) (.26)
Net realized gain - - - - - (.11)
-------- -------- -------- --------- -------- --------
Total distributions (.11) (.24) (.24) (.26) (.26) (.37)
-------- -------- -------- --------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 5.25 $ 5.20 $ 5.37 $ 5.21 $ 4.96 $ 4.97
======== ======== ======== ========= ======== ========
Total Return(b) 3.13%(c) 1.31% 7.96% 10.41% 5.31% (3.73)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver
and expense reductions .51%(c) 1.00% 1.03% .90% .97% .93%
Expenses, excluding waiver
and expense reductions .51%(c) 1.00% 1.05% 1.06% .98% .93%
Net investment income 2.08%(c) 4.49% 4.77% 4.93% 5.03% 5.11%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ----------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 148,565 $ 153,797 $ 164,733 $ 160,171 $ 151,048 $ 163,237
Portfolio turnover rate 16.06% 70.02% 97.76% 101.02% 125.73% 185.16%
=============================================================================================================
</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.
(d) Amount is less than $0.01.
SEE NOTES TO FINANCIAL STATEMENTS.
103
<Page>
FINANCIAL HIGHLIGHTS
NEW YORK TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE
(CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.42 $ 11.66 $ 11.16 $ 10.53 $ 10.51 $ 11.43
======== ======== ======== ========= ======== ========
Investment operations
Net investment income .24(a) .52(a) .54(a) .53(a) .55(a) .58
Net realized and
unrealized gain (loss) .11 (.24) .49 .64 .02 (.94)
-------- -------- -------- --------- -------- --------
Total from investment
operations .35 .28 1.03 1.17 .57 (.36)
-------- -------- -------- --------- -------- --------
Distributions to shareholders
from net investment income (.25) (.52) (.53) (.54) (.55) (.56)
-------- -------- -------- --------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 11.52 $ 11.42 $ 11.66 $ 11.16 $ 10.53 $ 10.51
======== ======== ======== ========= ======== ========
Total Return(b) 3.06%(c) 2.55% 9.50% 11.35% 5.65% (3.23)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense
reductions .50%(c) .96% 1.03% 1.01% .96% .93%
Expenses, excluding expense
reductions .50%(c) .96% 1.04% 1.04% .97% .93%
Net investment income 2.11%(c) 4.54% 4.80% 4.80% 5.28% 5.21%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ----------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 245,214 $ 247,153 $ 252,831 $ 242,367 $ 228,362 $ 248,456
Portfolio turnover rate 18.78% 47.94% 51.72% 70.03% 76.33% 52.67%
=============================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
104
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
NEW YORK TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE
(CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.42 $ 11.67 $ 11.17 $ 10.54 $ 10.51 $ 11.42
======== ======== ======== ========= ======== ========
Investment operations
Net investment income .21(a) .44(a) .48(a) .46(a) .49(a) .50
Net realized and
unrealized gain (loss) .10 (.23) .49 .65 .02 (.93)
-------- -------- -------- --------- -------- --------
Total from investment
operations .31 .21 .97 1.11 .51 (.43)
-------- -------- -------- --------- -------- --------
Distributions to shareholders
from net investment income (.21) (.46) (.47) (.48) (.48) (.48)
-------- -------- -------- --------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 11.52 $ 11.42 $ 11.67 $ 11.17 $ 10.54 $ 10.51
======== ======== ======== ========= ======== ========
Total Return(b) 2.74%(c) 1.88% 8.90% 10.74% 5.07% (3.93)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense
reductions .82%(c) 1.63% 1.51% 1.62% 1.55% 1.62%
Expenses, excluding expense
reductions .82%(c) 1.63% 1.52% 1.65% 1.56% 1.62%
Net investment income 1.79%(c) 3.87% 4.32% 4.19% 4.72% 4.49%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 14,054 $ 12,379 $ 8,798 $ 6,662 $ 5,278 $ 6,577
Portfolio turnover rate 18.78% 47.94% 51.72% 70.03% 76.33% 52.67%
============================================================================================================
</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.
105
<Page>
FINANCIAL HIGHLIGHTS
TEXAS TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.36 $ 10.47 $ 9.99 $ 9.43 $ 9.55 $ 10.69
======== ======== ======== ========= ======== ========
Investment operations
Net investment income .22(a) .46(a) .45(a) .46(a) .51(a) .52
Net realized and
unrealized gain (loss) .12 (.13) .48 .57 (.13) (1.03)
-------- -------- -------- --------- -------- --------
Total from investment
operations .34 .33 .93 1.03 .38 (.51)
-------- -------- -------- --------- -------- --------
Distributions to
shareholders from:
Net investment income (.22) (.44) (.45) (.47) (.50) (.52)
Net realized gain - - - - - (.11)
-------- -------- -------- --------- -------- --------
Total distributions (.22) (.44) (.45) (.47) (.50) (.63)
-------- -------- -------- --------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.48 $ 10.36 $ 10.47 $ 9.99 $ 9.43 $ 9.55
======== ======== ======== ========= ======== ========
Total Return(b) 3.31%(c) 3.32% 9.55% 11.30% 4.14% (4.96)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver
and expense reductions .51%(c) 1.02% 1.00% .64% .99% .94%
Expenses, excluding waiver
and expense reductions .51%(c) 1.02% 1.05% 1.09% 1.01% .94%
Net investment income 2.12%(c) 4.44% 4.49% 4.70% 5.47% 5.12%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 80,692 $ 79,185 $ 81,369 $ 77,860 $ 74,405 $ 84,491
Portfolio turnover rate 14.48% 58.09% 89.30% 108.27% 163.39% 168.04%
============================================================================================================
</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.
106
<Page>
FINANCIAL HIGHLIGHTS
WASHINGTON TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.21 $ 5.32 $ 5.15 $ 4.89 $ 4.91 $ 5.38
======== ======== ======== ========= ======== ========
Investment operations
Net investment income .11(a) .24(a) .26(a) .26(a) .27(a) .28
Net realized and
unrealized gain (loss) .04 (.10) .17 .26 (.04) (.50)
-------- -------- -------- --------- -------- --------
Total from investment
operations .15 .14 .43 .52 .23 (.22)
-------- -------- -------- --------- -------- --------
Distributions to shareholders
from net investment income (.12) (.25) (.26) (.26) (.25) (.25)
-------- -------- -------- --------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 5.24 $ 5.21 $ 5.32 $ 5.15 $ 4.89 $ 4.91
======== ======== ======== ========= ======== ========
Total Return(b) 2.87%(c) 2.75% 8.71% 10.92% 4.90% (4.17)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense
reductions .35%(c) .68% .71% .70% .71% .66%
Expenses, excluding expense
reductions .35%(c) .68% .72% .73% .71% .66%
Net investment income 2.20%(c) 4.68% 5.14% 5.22% 5.58% 5.42%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2004 ---------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 51,809 $ 50,497 $ 49,049 $ 45,883 $ 44,512 $ 51,849
Portfolio turnover rate 20.26% 58.05% 40.20% 52.09% 152.63% 180.42%
============================================================================================================
</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.
107
<Page>
FINANCIAL HIGHLIGHTS
INSURED INTERMEDIATE TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED 6/23/2003(a)
3/31/2004 TO
(UNAUDITED) 9/30/2003
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.94 $ 10.00
========= =========
Unrealized depreciation on investments (.01)
---------
NET ASSET VALUE ON SEC EFFECTIVE DATE $ 9.99
=========
Investment operations
Net investment income(b) .13 .06
Net realized and unrealized gain (loss) .08 (.05)
--------- ---------
Total from investment operations .21 .01
--------- ---------
Distributions to shareholders from
net investment income (.13) (.06)
--------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.02 $ 9.94
========= =========
Total Return(c) 2.15%(d) .16%(d)(e)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions .13%(d)+ .07%(d)+
Expenses, excluding waiver and expense reductions 1.70%(d)+ 2.47%(d)+
Net investment income 1.39%(d)+ .66%(d)+
<Caption>
SIX MONTHS
ENDED 6/23/2003(a)
3/31/2004 TO
SUPPLEMENTAL DATA: (UNAUDITED) 9/30/2003
- -------------------------------------------------------------------------------------
Net assets, end of period (000) $ 4,564 $ 3,673
Portfolio turnover rate 16.47% 107.99%
=====================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
108
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
INSURED INTERMEDIATE TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED 6/23/2003(a)
3/31/2004 TO
(UNAUDITED) 9/30/2003
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.93 $ 10.00
========= =========
Unrealized depreciation on investments (.02)
---------
NET ASSET VALUE ON SEC EFFECTIVE DATE $ 9.98
=========
Investment operations
Net investment income(b) .10 .05
Net realized and unrealized gain (loss) .07 (.05)
--------- ---------
Total from investment operations .17 -
--------- ---------
Distributions to shareholders from
net investment income (.09) (.05)
--------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.01 $ 9.93
========= =========
Total Return(c) 1.77%(d) .04%(d)(e)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions .50%(d)+ .27%(d)+
Expenses, excluding waiver and expense reductions 2.02%(d)+ 2.64%(d)+
Net investment income 1.02%(d)+ .46%(d)+
<Caption>
SIX MONTHS
ENDED 6/23/2003(a)
3/31/2004 TO
SUPPLEMENTAL DATA: (UNAUDITED) 9/30/2003
- -------------------------------------------------------------------------------------
Net assets, end of period (000) $ 416 $ 312
Portfolio turnover rate 16.47% 107.99%
=====================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
109
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
INSURED INTERMEDIATE TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED 6/23/2003(a)
3/31/2004 TO
(UNAUDITED) 9/30/2003
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.93 $ 10.00
========= =========
Unrealized depreciation on investments (.02)
---------
NET ASSET VALUE ON SEC EFFECTIVE DATE $ 9.98
=========
Investment operations
Net investment income(b) .10 .05
Net realized and unrealized gain (loss) .07 (.05)
--------- ---------
Total from investment operations .17 -
--------- ---------
Distributions to shareholders from
net investment income (.09) (.05)
--------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.01 $ 9.93
========= =========
Total Return(c) 1.74%(d) (.04)%(d)(e)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions .50%(d)+ .27%(d)+
Expenses, excluding waiver and expense reductions 2.02%(d)+ 2.64%(d)+
Net investment income 1.02%(d)+ .46%(d)+
<Caption>
SIX MONTHS
ENDED 6/23/2003(a)
3/31/2004 TO
SUPPLEMENTAL DATA: (UNAUDITED) 9/30/2003
- -------------------------------------------------------------------------------------
Net assets, end of period (000) $ 2,445 $ 313
Portfolio turnover rate 16.47% 107.99%
=====================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
110
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
INSURED INTERMEDIATE TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED 6/23/2003(a)
3/31/2004 TO
(UNAUDITED) 9/30/2003
PER SHARE OPERATING PERFORMANCE (CLASS P SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.94 $ 10.00
========= =========
Unrealized depreciation on investments (.01)
---------
NET ASSET VALUE ON SEC EFFECTIVE DATE $ 9.99
=========
Investment operations
Net investment income(b) .13 .06
Net realized and unrealized gain (loss) .07 (.05)
--------- ---------
Total from investment operations .20 .01
--------- ---------
Distributions to shareholders from
net investment income (.12) (.06)
--------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.02 $ 9.94
========= =========
Total Return(c) 2.05%(d) .11%(d)(e)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions .22%(d)+ .12%(d)+
Expenses, excluding waiver and expense reductions 1.74%(d)+ 2.49%(d)+
Net investment income 1.30%(d)+ .61%(d)+
<Caption>
SIX MONTHS
ENDED 6/23/2003(a)
3/31/2004 TO
SUPPLEMENTAL DATA: (UNAUDITED) 9/30/2003
- -------------------------------------------------------------------------------------
Net assets, end of period (000) $ 10 $ 10
Portfolio turnover rate 16.47% 107.99%
=====================================================================================
</Table>
+ The ratios have been determined on a Fund basis.
(a) Commencement of investment operations; SEC effective date and date shares
first became available to the public is June 30, 2003.
(b) Calculated using average shares outstanding during the period.
(c) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(d) Not annualized.
(e) Total return for the period June 30, 2003 (SEC effective date) to September
30, 2003.
SEE NOTES TO FINANCIAL STATEMENTS.
111
<Page>
FINANCIAL HIGHLIGHTS
FLORIDA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2004 ------------------------------------ TO --------------------
(UNAUDITED) 2003 2002 2001 9/30/2000* 1999 1998
PER SHARE OPERATING PERFORMANCE
(CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 4.88 $ 4.97 $ 4.82 $ 4.57 $ 4.52 $ 4.98 $ 4.87
======== ======== ======== ======== ======== ======== ========
Investment operations
Net investment income .10(a) .21(a) .23(a) .23(a) .23(a) .23 .24
Net realized and
unrealized gain (loss) .03 (.09) .15 .25 .03 (.46) .11
-------- -------- -------- -------- -------- -------- --------
Total from investment
operations .13 .12 .38 .48 .26 (.23) .35
-------- -------- -------- -------- -------- -------- --------
Distributions to
shareholders from
net investment income (.10) (.21) (.23) (.23) (.21) (.23) (.24)
-------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD $ 4.91 $ 4.88 $ 4.97 $ 4.82 $ 4.57 $ 4.52 $ 4.98
======== ======== ======== ======== ======== ======== ========
Total Return(b) 2.75%(c) 2.62% 8.10% 10.68% 5.86%(c) (4.74)% 7.30%
RATIOS TO AVERAGE
NET ASSETS
Expenses, including
expense reductions .50%(c) 1.04% 1.07% .99% .89%(c) .97% .89%
Expenses, excluding
expense reductions .50%(c) 1.04% 1.08% 1.05% .89%(c) .97% .89%
Net investment income 2.12%(c) 4.33% 4.74% 4.77% 5.00%(c) 4.73% 4.79%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2004 ------------------------------------ TO ---------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 9/30/2000* 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 81,710 $ 78,278 $ 84,325 $ 83,798 $ 94,817 $ 100,924 $ 127,292
Portfolio turnover rate 30.94% 86.95% 82.90% 84.37% 169.02% 191.12% 140.61%
=============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
112
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
FLORIDA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2004 ------------------------------------ TO --------------------
(UNAUDITED) 2003 2002 2001 9/30/2000* 1999 1998
PER SHARE OPERATING PERFORMANCE
(CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 4.89 $ 4.98 $ 4.83 $ 4.58 $ 4.52 $ 4.98 $ 4.87
======== ======== ======== ======== ======== ======== ========
Investment operations
Net investment income .09(a) .18(a) .20(a) .20(a) .20(a) .20 .20
Net realized and
unrealized gain (loss) .03 (.09) .14 .25 .04 (.46) .11
-------- -------- -------- -------- -------- -------- --------
Total from investment
operations .12 .09 .34 .45 .24 (.26) .31
-------- -------- -------- -------- -------- -------- --------
Distributions to
shareholders from
net investment income (.09) (.18) (.19) (.20) (.18) (.20) (.20)
-------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD $ 4.92 $ 4.89 $ 4.98 $ 4.83 $ 4.58 $ 4.52 $ 4.98
======== ======== ======== ======== ======== ======== ========
Total Return(b) 2.42%(c) 1.97% 7.32% 9.99% 5.44%(c) (5.43)% 6.52%
RATIOS TO AVERAGE
NET ASSETS
Expenses, including
expense reductions .83%(c) 1.71% 1.73% 1.64% 1.42%(c) 1.62% 1.58%
Expenses, excluding
expense reductions .83%(c) 1.71% 1.74% 1.70% 1.43%(c) 1.62% 1.58%
Net investment income 1.79%(c) 3.66% 4.08% 4.13% 4.52%(c) 4.07% 4.09%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2004 ------------------------------------ TO --------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 9/30/2000* 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 6,345 $ 6,514 $ 5,927 $ 5,230 $ 4,706 $ 6,046 $ 7,275
Portfolio turnover rate 30.94% 86.95% 82.90% 84.37% 169.02% 191.12% 140.61%
=============================================================================================================================
</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.
113
<Page>
FINANCIAL HIGHLIGHTS
GEORGIA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2004 ------------------------------------ TO --------------------
(UNAUDITED) 2003 2002 2001 9/30/2000* 1999 1998
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.63 $ 5.70 $ 5.44 $ 5.07 $ 4.91 $ 5.43 $ 5.31
======== ======== ======== ======== ======== ======== ========
Investment operations
Net investment income .12(a) .24(a) .23(a) .26(a) .21(a) .28 .27
Net realized and
unrealized gain (loss) .07 (.06) .26 .37 .19 (.50) .19
-------- -------- -------- -------- -------- -------- --------
Total from investment
operations .19 .18 .49 .63 .40 (.22) .46
-------- -------- -------- -------- -------- -------- --------
Distributions to
shareholders from:
Net investment income (.11) (.23) (.23) (.26) (.24) (.26) (.27)
Net realized gain - (.02) - - - (.04) (.07)
-------- -------- -------- -------- -------- -------- --------
Total distributions (.11) (.25) (.23) (.26) (.24) (.30) (.34)
-------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD $ 5.71 $ 5.63 $ 5.70 $ 5.44 $ 5.07 $ 4.91 $ 5.43
======== ======== ======== ======== ======== ======== ========
Total Return(b) 3.46%(c) 3.21% 9.27% 12.69% 8.59%(c) 4.36% 9.00%
RATIOS TO AVERAGE
NET ASSETS
Expenses, including
waiver and expense
reductions .33%(c) .68% .69% .31% .17%(c) .18% .24%
Expenses, excluding
waiver and expense
reductions .33%(c) .69% .72% .78% .63%(c) .68% .74%
Net investment income 2.04%(c) 4.26% 4.24% 4.81% 4.30%(c) 5.32% 5.07%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2004 ------------------------------------ TO --------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 9/30/2000* 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 93,441 $ 85,441 $ 69,836 $ 46,235 $ 29,245 $ 27,432 $ 19,764
Portfolio turnover rate 7.07% 34.13% 48.66% 43.50% 122.44% 115.87% 126.52%
=============================================================================================================================
</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.
114
<Page>
FINANCIAL HIGHLIGHTS
MICHIGAN TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2004 ------------------------------------ TO --------------------
(UNAUDITED) 2003 2002 2001 9/30/2000* 1999 1998
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.36 $ 5.43 $ 5.20 $ 4.87 $ 4.75 $ 5.18 $ 5.06
======== ======== ======== ======== ======== ======== ========
Investment operations
Net investment income .11(a) .23(a) .25(a) .25(a) .21(a) .26 .26
Net realized and
unrealized gain (loss) .04 (.07) .23 .33 .14 (.44) .12
-------- -------- -------- -------- -------- -------- --------
Total from investment
operations .15 .16 .48 .58 .35 (.18) .38
-------- -------- -------- -------- -------- -------- --------
Distributions to
shareholders from
net investment income (.11) (.23) (.25) (.25) (.23) (.25) (.26)
-------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD $ 5.40 $ 5.36 $ 5.43 $ 5.20 $ 4.87 $ 4.75 $ 5.18
======== ======== ======== ======== ======== ======== ========
Total Return(b) 2.81%(c) 3.16% 9.57% 12.21% 7.57%(c) (3.55)% 7.59%
RATIOS TO AVERAGE
NET ASSETS
Expenses, including
expense reductions .34%(c) .71% .73% .69% .67%(c) .69% .69%
Expenses, excluding
expense reductions .34%(c) .73% .75% .74% .67%(c) .69% .69%
Net investment income 2.09%(c) 4.28% 4.77% 4.91% 4.37%(c) 5.21% 4.98%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2004 ------------------------------------ TO --------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 9/30/2000* 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 73,144 $ 68,290 $ 58,632 $ 49,330 $ 45,666 $ 49,356 $ 53,139
Portfolio turnover rate 10.37% 59.46% 48.09% 100.27% 111.48% 186.97% 82.33%
=============================================================================================================================
</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.
115
<Page>
FINANCIAL HIGHLIGHTS
PENNSYLVANIA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2004 ------------------------------------ TO --------------------
(UNAUDITED) 2003 2002 2001 9/30/2000* 1999 1998
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 5.27 $ 5.37 $ 5.18 $ 4.90 $ 4.81 $ 5.28 $ 5.14
======== ======== ======== ======== ======== ======== ========
Investment operations
Net investment income .11(a) .23(a) .24(a) .25(a) .22(a) .26 .27
Net realized and
unrealized gain (loss) .08 (.10) .19 .28 .10 (.47) .14
-------- -------- -------- -------- -------- -------- --------
Total from investment
operations .19 .13 .43 .53 .32 (.21) .41
-------- -------- -------- -------- -------- -------- --------
Distributions to
shareholders from
net investment income (.11) (.23) (.24) (.25) (.23) (.26) (.27)
-------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD $ 5.35 $ 5.27 $ 5.37 $ 5.18 $ 4.90 $ 4.81 $ 5.28
======== ======== ======== ======== ======== ======== ========
Total Return(b) 3.61%(c) 2.52% 8.57% 11.06% 6.83%(c) (4.13)% 8.12%
RATIOS TO AVERAGE
NET ASSETS
Expenses, including
waiver and expense
reductions .48%(c) .94% 1.08% .90% .88%(c) .96% .72%
Expenses, excluding
waiver and expense
reductions .48%(c) .95% 1.10% 1.06% .88%(c) .96% .72%
Net investment income 2.10%(c) 4.37% 4.66% 4.88% 4.54%(c) 5.02% 5.05%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 11/1/1999 YEAR ENDED 10/31
3/31/2004 ------------------------------------ TO --------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 9/30/2000* 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Net assets,
end of period (000) $ 99,940 $ 99,280 $101,502 $ 94,550 $ 91,750 $ 93,835 $102,907
Portfolio turnover rate 11.14% 29.76% 60.87% 65.63% 61.00% 40.76% 65.20%
=============================================================================================================================
</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.
116
<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 five
portfolios and their respective classes (separately, a "Fund" and collectively,
the "Funds"): Florida Series ("Florida"), Class A, C and P shares; Georgia
Series ("Georgia"), Michigan Series ("Michigan"), Pennsylvania Series
("Pennsylvania"), Class A and P shares, and Lord Abbett Insured Intermediate
Tax-Free Fund ("Insured"), Class A, B, C and P. Each Fund is non-diversified as
defined under the Act, except for National and Insured. As of the date of this
report, only Insured has issued class P shares.
The investment objective of each Fund is to seek the maximum amount of interest
income exempt from federal income tax as is consistent with reasonable risk.
Each Fund (except for National and Insured) also seeks as high a level of
interest income exempt from the personal income tax of its state as is
consistent with reasonable risk. New York also seeks as high a level of interest
income exempt from New York City personal income tax as is consistent with
reasonable risk. Each class has different expenses and dividends. A front-end
sales charge is normally added to the Net Asset Value ("NAV") for Class A
shares. There is no front-end sales charge in the case of the Class B, C and P
shares, although there may be a contingent deferred sales charge ("CDSC") as
follows: certain redemptions of Class A shares made within 24 months following
any purchases made without a sales charge; Class B shares redeemed before the
sixth anniversary of purchase; and Class C shares redeemed before the first
anniversary of purchase. Class B shares will convert to Class A shares on the
eighth anniversary of the original purchase of Class B shares.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) INVESTMENT VALUATION-Securities are valued at prices supplied by independent
pricing services approved by the Directors/Trustees. Such prices reflect
broker/dealer supplied valuations and electronic data processing techniques.
Prices reflect the mean of the bid and asked prices. Securities for which
market quotations are not readily available are valued at
117
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
fair value, as determined by management and approved in good faith by the
Board of Directors/Trustees. Short-term securities with 60 days or less
remaining to maturity are valued using the amortized cost method, which
approximates current market value.
(b) SECURITY TRANSACTIONS-Security transactions are recorded as of the date that
the securities are purchased or sold (trade date). Realized gains and losses
from sales of portfolio securities are calculated using the identified-cost
method. Realized and unrealized gains or losses are allocated to each class
of shares, based upon the relative proportion of net assets at the beginning
of the day.
(c) INVESTMENT INCOME-Dividend income is recorded on the ex-dividend date.
Interest income is recorded on the accrual basis. Discounts are accreted and
premiums are amortized using the effective interest method. Investment
income is allocated to each class of shares based upon the relative
proportion of net assets at the beginning of the day.
(d) FEDERAL TAXES-It is the policy of each Fund to meet the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all taxable income and capital
gains to its shareholders. Therefore, no federal income tax provision is
required.
(e) EXPENSES-Expenses incurred by the Company and Trust that do not specifically
relate to an individual Fund are allocated to the Funds on a pro-rata basis.
Expenses, excluding class specific expenses, are allocated to each class of
shares based upon the relative proportion of net assets at the beginning of
the day. Class A, B, C and P shares bear all expenses and fees relating to
their respective 12b-1 Distribution Plans.
(f) OFFERING COSTS-Lord Abbett incurred initial offering costs on behalf of
Insured that will be reimbursed by the Fund in full amount thereof. Such
expenses were deferred and are being amortized on the straight-line method
over a period of one year from the commencement of investment operations.
(g) WHEN-ISSUED MUNICIPAL BONDS-Each Fund may purchase new issues of municipal
bonds, which are generally offered on a when-issued basis, with delivery and
payment normally taking place approximately one month after the purchase
date.
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES
The Company and Trust each have a management agreement with Lord, Abbett & 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 .50%
for all Funds, excluding Insured. The management fee for Insured is based on
average daily net assets at the following annual rate:
<Table>
- -----------------------------------
First $2 Billion .45%
Next $3 Billion .425%
Over $5 Billion .40%
</Table>
118
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
For the six months ended March 31, 2004, Lord Abbett waived its management fee
and reimbursed all other expenses (excluding 12b-1 service fees) for Insured.
Lord Abbett provides 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.
12b-1 DISTRIBUTION PLAN
Each Fund has adopted a distribution 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, 2004, the net assets of
each such Fund have not reached $100 million.
(2) Annual service fee is .15% of the average daily net assets attributable to
Class A shares sold prior to the following dates:
<Table>
<Caption>
DATE
- --------------------------------------------------------------------------------
National, New York, Texas June 1, 1990
Hawaii January 1, 1993
New Jersey July 1, 1992
Florida October 1, 1992
Pennsylvania March 31, 1998
</Table>
(3) In addition, the Funds pay a one-time distribution fee of up to 1% on
certain qualifying purchases, which is generally amortized over a two-year
period.
(4) For the six months ended March 31, 2004, Lord Abbett reimbursed this
portion of the fees payable under the plan for Insured Class A.
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, 2004:
<Table>
<Caption>
DISTRIBUTOR DEALERS'
COMMISSIONS CONCESSIONS
- --------------------------------------------------------------------------------
National $ 57,625 $ 272,359
California 20,302 93,962
Connecticut 7,546 34,870
Hawaii 3,526 17,577
Minnesota 16,273 77,986
Missouri 34,201 162,310
New Jersey 13,821 63,036
New York 12,580 60,945
Texas 4,573 22,806
Washington 10,635 49,265
Insured 1,497 7,596
Florida 3,986 18,843
Georgia 47,244 223,793
Michigan 18,392 104,859
Pennsylvania 10,242 48,275
</Table>
One Director/Trustee and certain of the Company's and Trust's officers have an
interest in Lord Abbett.
119
<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 declared and distributed to shareholders
at least annually. The capital loss carryforward amount is available to offset
future net capital gains. Dividends and distributions to shareholders are
recorded on the ex-dividend date. The amount of dividends and distributions from
net investment income and net realized capital gains are determined in
accordance with federal income tax regulations which may differ from accounting
principles generally accepted in the United States of America. These book/tax
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the components of net assets based on their federal tax basis treatment;
temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for tax purposes are reported as distributions of paid-in capital.
The tax character of the distributions paid during the six months ended March
31, 2004, and the fiscal year ended September 30, 2003 are as follows:
<Table>
<Caption>
NATIONAL CALIFORNIA
- --------------------------------------------------------------------------------------
3/31/2004* 9/30/2003 3/31/2004* 9/30/2003
- --------------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ - $ 709,004 $ - $ -
Tax exempt income 12,232,965 25,672,140 3,868,179 8,871,342
- --------------------------------------------------------------------------------------
Total distributions paid $ 12,232,965 $ 26,381,144 $ 3,868,179 $ 8,871,342
======================================================================================
<Caption>
CONNECTICUT HAWAII
- --------------------------------------------------------------------------------------
3/31/2004* 9/30/2003 3/31/2004* 9/30/2003
- --------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 1,959,623 $ 4,356,708 $ 1,454,946 $ 3,177,488
- --------------------------------------------------------------------------------------
Total distributions paid $ 1,959,623 $ 4,356,708 $ 1,454,946 $ 3,177,488
======================================================================================
<Caption>
MINNESOTA MISSOURI
- --------------------------------------------------------------------------------------
3/31/2004* 9/30/2003 3/31/2004* 9/30/2003
- --------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 748,564 $ 1,329,120 $ 3,064,665 $ 6,009,033
- --------------------------------------------------------------------------------------
Total distributions paid $ 748,564 $ 1,329,120 $ 3,064,665 $ 6,009,033
======================================================================================
<Caption>
NEW JERSEY NEW YORK
- --------------------------------------------------------------------------------------
3/31/2004* 9/30/2003 3/31/2004* 9/30/2003
- --------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 3,233,947 $ 7,202,044 $ 5,523,974 $ 11,705,846
- --------------------------------------------------------------------------------------
Total distributions paid $ 3,233,947 $ 7,202,044 $ 5,523,974 $ 11,705,846
======================================================================================
</Table>
120
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
<Table>
<Caption>
TEXAS WASHINGTON
- --------------------------------------------------------------------------------------
3/31/2004* 9/30/2003 3/31/2004* 9/30/2003
- --------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 1,684,463 $ 3,451,579 $ 1,150,811 $ 2,382,580
- --------------------------------------------------------------------------------------
Total distributions paid $ 1,684,463 $ 3,451,579 $ 1,150,811 $ 2,382,580
======================================================================================
<Caption>
INSURED FLORIDA
- --------------------------------------------------------------------------------------
3/31/2004* 9/30/2003** 3/31/2004* 9/30/2003
- --------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 72,084 $ 19,301 $ 1,741,432 $ 3,821,091
- --------------------------------------------------------------------------------------
Total distributions paid $ 72,084 $ 19,301 $ 1,741,432 $ 3,821,091
======================================================================================
<Caption>
GEORGIA MICHIGAN
- --------------------------------------------------------------------------------------
3/31/2004* 9/30/2003 3/31/2004* 9/30/2003
- --------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 1,761,642 $ 3,203,266 $ 1,447,917 $ 2,853,218
Net long term capital gains - 214,585 - -
- --------------------------------------------------------------------------------------
Total distributions paid $ 1,761,642 $ 3,417,851 $ 1,447,917 $ 2,853,218
======================================================================================
<Caption>
PENNSYLVANIA
- --------------------------------------------------------
3/31/2004* 9/30/2003
- --------------------------------------------------------
Distributions paid from:
Tax exempt income $ 2,038,747 $ 4,360,779
- --------------------------------------------------------
Total distributions paid $ 2,038,747 $ 4,360,779
========================================================
</Table>
*Unaudited
**For the period June 23, 2003 (commencement of investment operations) to
September 30, 2003.
As of September 30, 2003, the capital loss carryforwards, along with the related
expiration dates, were as follows:
<Table>
<Caption>
2004 2005 2006 2007 2008 2009 2010 2011 TOTAL
- ---------------------------------------------------------------------------------------------------------------------------------
National $ - $ - $ - $ - $ 11,399,772 $ 385,136 $ - $ 255,373 $ 12,040,281
California - - - - 3,282,765 - - 34,990 3,317,755
Connecticut 268,469 - - - 677,619 518,107 - - 1,464,195
Hawaii 1,096,898 - - 37,384 584,699 268,000 - - 1,986,981
Minnesota - - - - - 560,978 - - 560,978
Missouri 484,385 31,063 - - 151,236 86,407 - - 753,091
New Jersey - - - - 3,467,129 - - 405,467 3,872,596
New York 1,668,796 - - - 983,645 1,190,572 - 25,993 3,869,006
Texas - - - - 2,739,564 579,267 - - 3,318,831
Washington 295,103 - - - 947,474 710,842 - 42,693 1,996,112
Florida 1,035,870 - - 3,917,644 1,479,660 - - 763,887 7,197,061
Georgia - - - - - - - 92,644 92,644
Michigan - - - 998,605 711,637 - - - 1,710,242
Pennsylvania - - - - 762,318 - - 1,955 764,273
</Table>
121
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
As of March 31, 2004, the aggregate unrealized security 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 $ 566,924,415 $ 37,848,601 $ (786,042) $ 37,062,559
California 178,559,240 11,865,849 (38,769) 11,827,080
Connecticut 87,098,247 6,291,659 (21,435) 6,270,224
Hawaii 65,319,182 5,915,672 (3,258) 5,912,414
Minnesota 36,129,577 1,983,019 (4,733) 1,978,286
Missouri 141,817,557 9,312,260 (635) 9,311,625
New Jersey 135,970,187 10,686,469 - 10,686,469
New York 241,442,056 20,185,549 (352,054) 19,833,495
Texas 71,048,475 8,757,368 (17,441) 8,739,927
Washington 47,046,233 3,839,084 (31,604) 3,807,480
Insured 7,243,582 126,802 (10,087) 116,715
Florida 80,633,033 7,249,244 (79,327) 7,169,917
Georgia 85,968,763 5,137,171 (27,892) 5,109,279
Michigan 64,720,606 5,583,829 (63) 5,583,766
Pennsylvania 91,996,669 7,713,625 (88,723) 7,624,902
</Table>
The difference between book-basis and tax-basis unrealized gains (losses) is
primarily attributable to wash sales and other temporary tax adjustments.
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, 2004
- -----------------------------------------------------------------------------------
PURCHASES SALES
- -----------------------------------------------------------------------------------
National $ 499,923,714 $ 505,474,698
California 44,866,881 47,898,357
Connecticut 5,675,121 8,231,031
Hawaii 1,625,195 4,423,691
Minnesota 10,250,367 6,731,516
Missouri 23,924,427 25,005,442
New Jersey 23,959,027 32,821,033
New York 47,937,651 51,880,720
Texas 12,013,491 11,380,534
Washington 12,438,961 10,019,179
Insured 4,323,179 949,510
Florida 25,500,607 28,457,457
Georgia 12,474,941 6,080,067
Michigan 10,057,954 7,109,221
Pennsylvania 12,020,200 11,017,182
</Table>
There were no purchases or sales of U.S. Government securities for the six
months ended March 31, 2004.
122
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
6. DIRECTORS'/TRUSTEES' REMUNERATION
The Company's and Trust's officers and the one Director/Trustee who are
associated with Lord Abbett do not receive any compensation from the Company or
Trust for serving in such capacities. Outside Directors'/Trustees' fees are
allocated among all Lord Abbett-sponsored funds based on the net assets of each
fund. There is an equity based plan available to all outside Directors/Trustees
under which outside Directors/Trustees must defer receipt of a portion of, and
may elect to defer receipt of an additional portion of, Directors'/Trustees'
fees. The deferred amounts are treated as though equivalent dollar amounts have
been invested proportionately in the funds. 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 U.S. federal income tax purposes
until such amounts are paid.
7. EXPENSE REDUCTIONS
The Funds have entered into agreements with their transfer agent and/or
custodian whereby credits realized as a result of uninvested cash balances are
used to reduce a portion of the Funds' expenses.
8. CUSTODIAN AND ACCOUNTING AGENT
State Street Bank and Trust Company ("SSB") is the Funds' custodian and
accounting agent. SSB performs custodian, accounting and recordkeeping functions
relating to portfolio transactions and calculating each Fund's NAV.
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 and Insured) is non-diversified which means that it
may invest a greater portion of its assets in a single issuer than a diversified
fund. Thus, it may be exposed to greater risk.
Because each Fund other than National and Insured invests primarily in issuers
of its particular state, its performance may be more affected by local, state
and regional factors than a fund investing in municipal bonds issued in many
states, such as National and Insured. These factors may include economic,
political or state legislative developments, erosion of the tax base and the
possibility of credit problems. In addition, downturns or developments in the
U.S. economy or in foreign economies may harm the performance of each Fund, and
may do so disproportionately as a result of the corresponding disproportionate
impact of such occurrences on particular state, territory, or local economies.
123
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
Each Fund may invest up to 20% of its net assets in residual interest bonds
("RIBs"). RIBs, sometimes referred to as inverse floaters, are debt instruments
with a floating or variable interest rate that moves in the opposite direction
of the interest rate on another security or the value of an index. Changes in
the interest rate on the other security or index inversely affect the residual
interest paid on the RIB, with the result that when interest rates rise, RIBs
make lower interest payments and their values fall faster than fixed-rate bonds.
But, when interest rates fall, not only do RIBs make higher interest payments,
their values also rise faster than fixed-rate bonds.
Each Fund may purchase securities on a forward commitment or when-issued basis.
Delivery and payment for such securities can take place a month or more after
the transaction date. During this period such securities are subject to market
fluctuations.
10. SUMMARY OF CAPITAL TRANSACTIONS
The Company has 1,000,000,000 authorized shares of capital stock (par value
$.001) of which 900,000,000 are issued and allocated as follows: 150,000,000 to
National, 110,000,000 to each of California, New Jersey, and New York, and
70,000,000 to each of Connecticut, Hawaii, Minnesota, Missouri, Texas, and
Washington. The Trust has an unlimited number of shares of beneficial interest
authorized.
<Table>
<Caption>
SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED)
---------------------------------------------------------------------
CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY
- --------------------------------------------------------------------------------------------------------
SHARES SOLD 272,823 172,996 893,969 2,059,226 1,168,274
REINVESTMENT OF DISTRIBUTIONS 95,613 162,880 122,567 471,499 368,130
SHARES REACQUIRED (616,594) (1,132,920) (480,438) (2,176,027) (2,798,186)
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) (248,158) (797,044) 536,098 354,698 (1,261,782)
- --------------------------------------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED)
---------------------------------------------------------------------
TEXAS WASHINGTON GEORGIA MICHIGAN PENNSYLVANIA
- --------------------------------------------------------------------------------------------------------
SHARES SOLD 296,459 600,810 2,430,115 1,625,133 754,645
REINVESTMENT OF DISTRIBUTIONS 118,724 161,789 261,217 187,020 203,884
SHARES REACQUIRED (362,628) (579,926) (1,506,357) (1,023,693) (1,127,344)
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) 52,555 182,673 1,184,975 788,460 (168,815)
- --------------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED SEPTEMBER 30, 2003
---------------------------------------------------------------------
CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY
- --------------------------------------------------------------------------------------------------------
SHARES SOLD 784,378 1,118,700 2,634,465 4,063,538 2,469,761
REINVESTMENT OF DISTRIBUTIONS 202,793 338,450 209,576 888,995 786,255
SHARES REACQUIRED (1,212,005) (2,073,364) (963,379) (3,103,766) (4,363,119)
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) (224,834) (616,214) 1,880,662 1,848,767 (1,107,103)
- --------------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED SEPTEMBER 30, 2003
---------------------------------------------------------------------
TEXAS WASHINGTON GEORGIA MICHIGAN PENNSYLVANIA
- --------------------------------------------------------------------------------------------------------
SHARES SOLD 562,546 1,436,340 5,253,056 3,578,052 1,876,842
REINVESTMENT OF DISTRIBUTIONS 237,487 318,921 491,682 353,430 407,087
SHARES REACQUIRED (923,282) (1,270,360) (2,815,614) (1,989,612) (2,336,153)
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) (123,249) 484,901 2,929,124 1,941,870 (52,224)
- --------------------------------------------------------------------------------------------------------
</Table>
124
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONCLUDED)
Transactions (both shares and dollars) in Funds with multiple classes are as
follows:
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
NATIONAL MARCH 31, 2004 (UNAUDITED) SEPTEMBER 30, 2003
- ------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------
CLASS A SHARES
SHARES SOLD 2,657,299 $ 30,696,779 5,669,665 $ 65,071,288
REINVESTMENT OF DISTRIBUTIONS 640,143 7,380,287 1,359,829 15,627,071
SHARES REACQUIRED (2,715,473) (31,452,821) (7,418,567) (85,075,942)
- ------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) 581,969 $ 6,624,245 (389,073) $ (4,377,583)
- ------------------------------------------------------------------------------------------------------
CLASS B SHARES
SHARES SOLD 153,801 $ 1,787,714 980,446 $ 11,338,944
REINVESTMENT OF DISTRIBUTIONS 28,676 331,300 58,692 675,936
SHARES REACQUIRED (345,208) (4,001,001) (727,080) (8,357,818)
- ------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) (162,731) $ (1,881,987) 312,058 $ 3,657,062
- ------------------------------------------------------------------------------------------------------
CLASS C SHARES
SHARES SOLD 247,662 $ 2,875,670 988,068 $ 11,461,006
REINVESTMENT OF DISTRIBUTIONS 39,511 456,134 80,448 925,745
SHARES REACQUIRED (437,898) (5,072,890) (577,892) (6,648,381)
- ------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) (150,725) $ (1,741,086) 490,624 $ 5,738,370
- ------------------------------------------------------------------------------------------------------
<Caption>
CALIFORNIA
- ------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------
CLASS A SHARES
SHARES SOLD 844,366 $ 9,194,622 1,492,737 $ 16,255,433
REINVESTMENT OF DISTRIBUTIONS 193,876 2,101,899 413,818 4,507,517
SHARES REACQUIRED (1,403,298) (15,246,634) (2,583,054) (28,071,598)
- ------------------------------------------------------------------------------------------------------
DECREASE (365,056) $ (3,950,113) (676,499) $ (7,308,648)
- ------------------------------------------------------------------------------------------------------
CLASS C SHARES
SHARES SOLD 141,680 $ 1,533,321 510,721 $ 5,606,781
REINVESTMENT OF DISTRIBUTIONS 9,756 105,775 21,919 238,826
SHARES REACQUIRED (245,982) (2,656,156) (310,511) (3,360,618)
- ------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) (94,546) $ (1,017,060) 222,129 $ 2,484,989
- ------------------------------------------------------------------------------------------------------
<Caption>
NEW YORK
- ------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------
CLASS A SHARES
SHARES SOLD 567,713 $ 6,496,548 2,926,447 $ 33,217,359
REINVESTMENT OF DISTRIBUTIONS 283,589 3,235,477 594,191 6,775,806
SHARES REACQUIRED (1,214,438) (13,914,430) (3,567,933) (40,743,765)
- ------------------------------------------------------------------------------------------------------
DECREASE (363,136) $ (4,182,405) (47,295) $ (750,600)
- ------------------------------------------------------------------------------------------------------
CLASS C SHARES
SHARES SOLD 236,490 $ 2,700,412 506,318 $ 5,809,463
REINVESTMENT OF DISTRIBUTIONS 8,488 96,856 16,052 183,062
SHARES REACQUIRED (109,462) (1,250,218) (192,259) (2,174,296)
- ------------------------------------------------------------------------------------------------------
INCREASE 135,516 $ 1,547,050 330,111 $ 3,818,229
- ------------------------------------------------------------------------------------------------------
</Table>
125
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
<Table>
<Caption>
SIX MONTHS ENDED PERIOD ENDED
INSURED MARCH 31, 2004 (UNAUDITED) SEPTEMBER 30, 2003*
- ------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------
CLASS A SHARES
SHARES SOLD 166,297 $ 1,653,879 368,851 $ 3,663,501
REINVESTMENT OF DISTRIBUTIONS 5,420 53,886 1,182 11,397
SHARES REACQUIRED (85,748) (863,082) (534) (5,208)
- ------------------------------------------------------------------------------------------------------
INCREASE 85,969 $ 844,683 369,499 $ 3,669,690
- ------------------------------------------------------------------------------------------------------
CLASS B SHARES
SHARES SOLD 13,800 $ 137,344 31,393 $ 307,348
REINVESTMENT OF DISTRIBUTIONS 38 383 4 38
SHARES REACQUIRED (3,726) (37,556) - -
- ------------------------------------------------------------------------------------------------------
INCREASE 10,112 $ 100,171 31,397 $ 307,386
- ------------------------------------------------------------------------------------------------------
CLASS C SHARES
SHARES SOLD 232,588 $ 2,328,058 31,544 $ 309,785
REINVESTMENT OF DISTRIBUTIONS 114 1,130 32 307
SHARES REACQUIRED (19,958) (200,411) - -
- ------------------------------------------------------------------------------------------------------
INCREASE 212,744 $ 2,128,777 31,576 $ 310,092
- ------------------------------------------------------------------------------------------------------
CLASS P SHARES
SHARES SOLD - $ - 1,000 $ 10,000
REINVESTMENT OF DISTRIBUTIONS 13 124 4 42
- ------------------------------------------------------------------------------------------------------
INCREASE 13 $ 124 1,004 $ 10,042
- ------------------------------------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED YEAR ENDED
FLORIDA MARCH 31, 2004 (UNAUDITED) SEPTEMBER 30, 2003
- ------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------
CLASS A SHARES
SHARES SOLD 1,758,872 $ 8,691,274 1,544,362 $ 7,546,963
REINVESTMENT OF DISTRIBUTIONS 153,087 744,917 314,963 1,533,647
SHARES REACQUIRED (1,323,269) (6,455,580) (2,768,788) (13,472,904)
- ------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) 588,690 $ 2,980,611 (909,463) $ (4,392,294)
- ------------------------------------------------------------------------------------------------------
CLASS C SHARES
SHARES SOLD 78,279 $ 381,239 262,470 $ 1,292,387
REINVESTMENT OF DISTRIBUTIONS 8,016 39,073 12,271 59,826
SHARES REACQUIRED (129,465) (635,732) (131,233) (643,551)
- ------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) (43,170) $ (215,420) 143,508 $ 708,662
- ------------------------------------------------------------------------------------------------------
</Table>
*For the period June 23, 2003 (commencement of investment operations) to
September 30, 2003.
126
<Page>
HOUSEHOLDING
The Company and Trust have adopted a policy that allows them to send only one
copy of the Funds' Prospectus, proxy material, annual report and semi-annual
report to certain shareholders residing at the same "household." This reduces
Fund expenses, which benefits you and other shareholders. If you need additional
copies or do not want your mailings to be "householded," please call Lord Abbett
at 800-821-5129 or send a written request with your name, the name of your fund
or funds and your account number or numbers to Lord Abbett Family of Funds,
P.O. Box 219336, Kansas City, MO 64121.
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that Lord Abbett uses to vote
proxies related to the Funds' portfolio securities is available without charge,
upon request, (i) by calling 888-522-2388, (ii) on Lord Abbett's web site at
www.LordAbbett.com, and (iii) on the SEC's website at www.sec.gov.
127
<Page>
[LORD ABBETT(R) LOGO]
<Table>
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
This report when not used for the general Lord Abbett Washington Tax-Free Income Fund
information of shareholders of the Fund, is to Lord Abbett Tax-Free Income Trust
be distributed only if preceded or accompanied Lord Abbett Insured Intermediate Tax-Free Fund
by a current Fund Prospectus. Florida Series
Georgia Series
Lord Abbett Mutual Fund shares are distributed by: Michigan Series
LORD ABBETT DISTRIBUTOR LLC Pennsylvania Series LATFI-3-304
90 Hudson Street - Jersey City, New Jersey 07302-3973 (5/04)
</Table>
<Page>
ITEM 2: Code of Ethics.
Not applicable
ITEM 3: Audit Committee Financial Expert.
Not applicable.
ITEM 4-8: [Reserved]
ITEM 9: Submission of Matters to a Vote of Security Holders.
Not Applicable.
ITEM 10: Controls and Procedures.
(a) Based on their evaluation of the registrant's disclosure controls
and procedures (as defined in Rule 30a-2(c) under the Investment
Company Act of 1940) as of May 24, 2004, the Chief Executive
Officer and Chief Financial Officer of the registrant have
concluded that such disclosure controls and procedures are
reasonably designed and effective to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to them by others within those
entities.
(b) There were no significant changes in the registrant's internal
controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and
material weaknesses.
ITEM 11: Exhibits.
ITEM 11(a): Not applicable.
ITEM 11(b):
(i) Certification 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) is attached hereto as a part of EX-99.CERT.
(ii) Certification of each principal executive officer and principal
financial officer of the registrant as required by Section 906 of the
Sarbanes-Oxley Act of 2002 is attached hereto as a part of
EX-99.906CERT.
<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 24, 2004
<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 24, 2004