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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 MUNICIPAL INCOME FUND, INC.
----------------------------------------
(Exact name of Registrant as specified in charter)
90 Hudson Street, Jersey City, NJ 07302
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(Address of principal executive offices) (zip code)
Christina T. Simmons, Vice President & Assistant Secretary
90 Hudson Street, Jersey City, NJ 07302
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(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: 3/31/2006
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ITEM 1: REPORT TO SHAREHOLDERS.
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LORD ABBETT
2006
SEMIANNUAL
REPORT
LORD ABBETT
MUNICIPAL INCOME FUND
MUNICIPAL 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
HIGH YIELD MUNICIPAL BOND FUND
MICHIGAN TAX-FREE TRUST
PENNSYLVANIA TAX-FREE TRUST
FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2006
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LORD ABBETT MUNICIPAL INCOME FUND AND
LORD ABBETT MUNICIPAL INCOME TRUST
SEMIANNUAL REPORT
FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2006
DEAR SHAREHOLDERS: We are pleased to provide you with this overview of the
strategies and performance of Lord Abbett Municipal Income Fund and Lord Abbett
Municipal Income Trust for the six-month period ended March 31, 2006. 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
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Q: WHAT WERE THE OVERALL MARKET CONDITIONS DURING THE SIX-MONTH PERIOD ENDED
MARCH 31, 2006?
A: Interest rates finished at higher levels than they were at the start of the
six-month period. Early on, the rise was concentrated in short-term rates, so
that from the middle of February and into early March, the yield curve (a
graphic picture of short-term rates versus long-term rates) inverted; that is,
short rates were higher than long rates. However, long rates rose sharply in
March, causing the yield curve to steepen. Market sentiment turned more bearish
toward the end of the six-month period because of strong economic data and a
rise in energy prices, which raised questions about future potential inflation,
as well as when the Federal Reserve Board (the Fed) might stop raising
short-term interest rates.
While the Fed saw a shift in leadership when Alan Greenspan retired as
chairman and was replaced by Ben Bernanke on February 1, it nevertheless
continued its string of quarter-point rate hikes aimed at reducing monetary
accommodation in the financial system. The Fed implemented two quarter-point
increases in the federal funds rate during fourth quarter 2005 and two more
quarter-point increases in first quarter 2006. The last increase on March 28
raised the fed funds rate to 4.75 percent, which was the fifteenth rate hike
since June 2004. (The fed funds rate, set by the Fed, is the interest rate at
which banks make overnight loans to other depository institutions that need the
funds to meet reserve requirements.)
New municipal issuance hit a record in 2005, but then supply in first
quarter 2006 fell by 29 percent, compared with issuances in first quarter 2005.
Tight supplies helped to mitigate the price erosion in the municipal markets. As
a result, municipal yields did not rise as much as Treasury rates. As a sign of
investors' growing preference for municipals, the ratio of a 10-year municipal
to Treasury
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yield fell to 82.7 percent in March, from 88.9 percent in December 2005. During
the six-month period, high-yield municipal bonds generally outperformed higher
quality issues.
Q: HOW DID EACH FUND PERFORM OVER THE SIX-MONTH PERIOD ENDED MARCH 31, 2006?
A: Each fund (Class A shares) underperformed its benchmark. The National
Tax-Free Income Fund and the individual state-specific funds underperformed
their long-only benchmark, the Lehman Brothers Municipal Long Current Coupon
Bond Index,(1) and, for the most part, underperformed their peer group, as
represented by the Lipper Funds Average.(2)
Insured Intermediate Fund (Class A shares) underperformed its benchmark, the
Lehman Brothers 3-10 Year Insured Tax Exempt Bond Index,(3) and its peer group.
High Yield Municipal Bond Fund (Class A shares) underperformed its benchmark,
the Lehman Brothers Municipal Bond 85-15 High Yield/Investment Grade Index,(4)
but outperformed its peer group, as represented by the Lipper Funds Average.
MUNICIPAL INCOME PERFORMANCE SUMMARY
<Table>
<Caption>
CLASS A SHARES LEHMAN BROTHERS LEHMAN BROTHERS
@ NAV 3/31/06 LIPPER FUNDS MUNICIPAL LONG CURRENT MUNICIPAL
6-MONTH RETURN AVERAGE(2) COUPON BOND(1) INDEX BOND(6) INDEX
-------------- ------------ ----------------------- ---------------
NATIONAL TAX-FREE INCOME FUND 0.86% 0.91% 1.98% 0.98%
CALIFORNIA TAX-FREE INCOME FUND 0.78% 1.03% 1.98% 0.98%
CONNECTICUT TAX-FREE INCOME FUND 0.76% 0.52% 1.98% 0.98%
HAWAII TAX-FREE INCOME FUND 0.48% 0.73% 1.98% 0.98%
MINNESOTA TAX-FREE INCOME FUND 1.11% 0.85% 1.98% 0.98%
MISSOURI TAX-FREE INCOME FUND 0.69% 0.76% 1.98% 0.98%
NEW JERSEY TAX-FREE INCOME FUND 0.68% 0.90% 1.98% 0.98%
NEW YORK TAX-FREE INCOME FUND 0.56% 0.89% 1.98% 0.98%
TEXAS TAX-FREE INCOME FUND 0.61% 0.88% 1.98% 0.98%
WASHINGTON TAX-FREE INCOME FUND 0.84% 1.02% 1.98% 0.98%
INSURED INTERMEDIATE FUND 0.43% 0.60% 0.47%+ 0.98%
FLORIDA TAX-FREE TRUST 0.67% 1.08% 1.98% 0.98%
GEORGIA TAX-FREE TRUST 0.80% 0.77% 1.98% 0.98%
HIGH YIELD MUNICIPAL BOND FUND 2.74% 2.48% 4.07%++/2.79%+++ 0.98%
MICHIGAN TAX-FREE TRUST 0.79% 0.72% 1.98% 0.98%
PENNSYLVANIA TAX-FREE TRUST 0.40% 0.89% 1.98% 0.98%
</Table>
+ Lehman Brothers 3-10 Year Insured Tax-Exempt Bond Index.(3)
++ Lehman Brothers Municipal Bond 85-15 High Yield/Investment Grade Index.(4)
+++ Lehman Brothers Municipal Bond 50-50 High Yield/Investment Grade Index.(5)
The Fund intends to replace this benchmark with the Lehman Brothers
Municipal Bond 85-15 High Yield/Investment Grade Index.
2
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The Lipper Funds Average for each fund consists of Municipal Debt Funds for
the particular state involved, except for the National Tax-Free Fund, Washington
Tax-Free Fund, and Insured Intermediate Tax-Free Fund. In the case of those
funds, the applicable Lipper Funds Averages are General Municipal Debt Funds,
Other States Municipal Debt Funds, and Insured Municipal Debt Funds,
respectively.
STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
10 YEARS/
1 YEAR 5 YEARS SINCE INCEPTION
------ ------- ----------------
NATIONAL TAX-FREE INCOME FUND 0.43% 4.04% 5.03%
CALIFORNIA TAX-FREE INCOME FUND 0.54% 3.81% 4.86%
CONNECTICUT TAX-FREE INCOME FUND -0.05% 4.18% 4.90%
HAWAII TAX-FREE INCOME FUND -0.62% 3.61% 4.48%
MINNESOTA TAX-FREE INCOME FUND 0.57% 4.31% 5.18%
MISSOURI TAX-FREE INCOME FUND 0.10% 3.99% 4.80%
NEW JERSEY TAX-FREE INCOME FUND 0.18% 3.64% 4.70%
NEW YORK TAX-FREE INCOME FUND -0.31% 3.98% 4.99%
TEXAS TAX-FREE INCOME FUND -0.52% 4.12% 4.79%
WASHINGTON TAX-FREE INCOME FUND 0.04% 4.00% 5.03%
INSURED INTERMEDIATE FUND* -1.10% N/A 0.51%
FLORIDA TAX-FREE TRUST -0.28% 3.56% 4.36%
GEORGIA TAX-FREE TRUST 0.00% 4.53% 5.80%
HIGH YIELD MUNICIPAL BOND FUND** 3.21% N/A 4.11%
MICHIGAN TAX-FREE TRUST -0.13% 4.15% 5.27%
PENNSYLVANIA TAX-FREE TRUST -0.34% 4.06% 5.06%
</Table>
*SEC effective date June 30, 2003.
**SEC effective date December 30, 2004.
Standardized average annual total returns reflect performance at the
maximum 3.25 percent sales charge applicable to Class A share investments and
include the reinvestment of all distributions as of March 31, 2006.
PERFORMANCE DATA QUOTED REFLECT PAST PERFORMANCE AND ARE NO GUARANTEE OF
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE
QUOTED. BECAUSE OF ONGOING MARKET VOLATILITY, FUND PERFORMANCE MAY BE SUBJECT TO
SUBSTANTIAL FLUCTUATION. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN EACH FUND 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-END BY CALLING LORD ABBETT AT
800-821-5129 OR REFERRING TO OUR WEBSITE AT www.lordabbett.com.
Class A shares purchased with a front-end sales charge have no contingent
deferred sales charge (CDSC). However, certain purchases of Class A shares made
without a front-end sales charge may be subject to a CDSC of 1 percent if the
shares are redeemed within 12 months of the purchase. During certain periods,
certain expenses of the fund have been reimbursed by Lord Abbett; without such
3
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reimbursement of expenses, the fund's returns would have been lower. Please see
section "Your Investment - Purchases" in the prospectus for more information on
redemptions that may be subject to CDSC.
Q: WHAT WERE THE MOST SIGNIFICANT FACTORS AFFECTING PERFORMANCE?
A: Rising yields drove prices lower, detracting from performance overall. Also
detracting from performance relative to the funds' benchmarks, with the
exception of the High Yield Municipal Bond Fund, were redeemed revenue bonds
that were originally issued to finance public-assisted housing.
Many of the bonds that contributed to performance relative to the funds'
benchmarks, with the exception of the High Yield Municipal Bond Fund, were pre-
refunded issues. When a bond becomes pre-refunded, it appreciates in value
because of higher credit quality and improved marketability.
For the High Yield Municipal Bond Fund, airline revenue bonds contributed
the most to relative performance. These are bonds, issued by state authorities,
which provide the funding vehicle for airlines in the municipal market. Tobacco
bonds also contributed to relative performance. Liability cases within the court
system continued to be settled in favor of the tobacco companies. Auto-related
pollution control revenue bonds - bonds issued to finance air quality standards
for facilities in the automotive industry - detracted from relative performance.
Uncertainty about labor negotiations and future corporate strategies at Ford and
General Motors raised the risk premiums for these bonds, causing their prices to
fall.
EACH FUND'S PORTFOLIO IS ACTIVELY MANAGED AND, THEREFORE, ITS HOLDINGS AND
THE WEIGHTINGS OF A PARTICULAR ISSUER OR PARTICULAR SECTOR AS A PERCENTAGE OF
PORTFOLIO ASSETS ARE SUBJECT TO CHANGE.
A PROSPECTUS CONTAINS IMPORTANT INFORMATION ABOUT A FUND, INCLUDING ITS
INVESTMENT OBJECTIVES, RISKS, CHARGES, AND ONGOING EXPENSES, WHICH AN INVESTOR
SHOULD CAREFULLY CONSIDER BEFORE INVESTING. TO OBTAIN A PROSPECTUS ON ANY LORD
ABBETT MUTUAL FUND, PLEASE CONTACT YOUR INVESTMENT PROFESSIONAL OR LORD ABBETT
DISTRIBUTOR LLC AT 800-874-3733 OR VISIT OUR WEBSITE AT www.lordabbett.com. READ
THE PROSPECTUS CAREFULLY BEFORE INVESTING.
4
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(1) Lehman Brothers Municipal Long Current Coupon 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 22
years or longer; and have been issued after December 31, 1990.
(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. [Copyright(C)2006 by 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.
(3) The Lehman Brothers 3-10 Year Insured Tax-Exempt Bond Index consists of
insured tax-free municipal bonds ranging in maturity from 3-10 years.
(4) The Lehman Brothers Municipal Bond 85-15 High Yield/Investment Grade Index
is a total return benchmark designed for municipal portfolios, which contain
both investment and non-investment-grade tax-exempt bonds.
(5) The Lehman Brothers Municipal Bond 50-50 High Yield/Investment Grade Index
is a total return benchmark designed for municipal portfolios, which contain
both investment and non-investment-grade tax-exempt bonds. The index contains an
equal weighting of the Lehman Brothers Municipal Bond Index and the Lehman
Brothers Municipal Non-Investment Grade Index.
(6) The Lehman Brothers Municipal Bond 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. The index includes both zero coupon bonds and bonds subject to the
alternative minimum tax.
Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are
not available for direct investment.
IMPORTANT PERFORMANCE AND OTHER INFORMATION
The views of each fund's management and the portfolio holdings described in this
report are as of March 31, 2006; these views and holdings may have changed
subsequent to this date, and they do not guarantee the future performance of the
markets or the funds. 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
each fund, please see the prospectus.
PERFORMANCE DATA QUOTED ABOVE ARE 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, each fund's
performance may be subject to substantial fluctuation. Except where noted,
comparative fund performance does not account for the deduction of sales
charges, and would be different if sales charges were included. Each fund offers
additional classes of shares with distinct pricing options. For a full
description of the differences in pricing alternatives, please see the
prospectus.
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.
5
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EXPENSE EXAMPLE
As a shareholder of a Fund, you incur two types of costs: (1) transaction
costs, including sales charges on purchase payments (these charges vary among
the share classes); and (2) ongoing costs, including management fees;
distribution and service (12b-1) fees (these charges vary among the share
classes; also, certain Funds do not yet have effective Rule 12b-1 plans under
which distribution and service fees are paid); and other Fund expenses. This
Example is intended to help you understand your ongoing costs (in dollars) of
investing in each Fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period (October 1, 2005 through March 31,
2006).
ACTUAL EXPENSES
For each class of each Fund, the first line of the applicable table on the
following pages provides information about actual account values and actual
expenses. You may use the information in this line, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the first line under
the heading entitled "Expenses Paid During the Period 10/1/05 - 3/31/06" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
For each class of each Fund, the second line of the applicable table on the
following pages provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in each Fund and
other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
6
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NATIONAL TAX-FREE FUND
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Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,008.60 $ 4.66
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,020.30 $ 4.68
CLASS B
Actual $ 1,000.00 $ 1,005.20 $ 7.90
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,017.03 $ 7.95
CLASS C
Actual $ 1,000.00 $ 1,005.30 $ 7.90
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,017.03 $ 7.95
</Table>
+ For each class of the Fund, expenses are equal to the annualized expense
ratio for such class (0.93% for Class A, 1.58% for Class B and 1.58% for
Class C) multiplied by the average account value over the period,
multiplied by 182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S(a) %*
AAA 52.30%
AA+ 6.92%
Aa1 0.40%
AA 6.07%
Aa2 1.23%
AA- 4.33%
Aa3 0.21%
A+ 2.12%
A 5.40%
A- 2.24%
A2 0.98%
A3 2.59%
BBB+ 5.92%
Baa1 3.07%
BBB 4.18%
Baa2 0.37%
BBB- 1.10%
Baa3 0.57%
Short-Term Investments 0.00%**
Total 100.00%
</Table>
(a) Certain investments have not been rated by an independent ratings service
but are, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the
rating shown.
* Represents percent of total investments.
** Amount is less than 0.01%.
7
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CALIFORNIA TAX-FREE FUND
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Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,007.80 $ 4.71
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,020.25 $ 4.73
CLASS C
Actual $ 1,000.00 $ 1,003.70 $ 7.94
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,017.01 $ 8.00
</Table>
+ For each class of the Fund, expenses are equal to the annualized expense
ratio for such class (0.94% for Class A and 1.59% for Class C) multiplied
by the average account value over the period, multiplied by 182/365 (to
reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S %*
AAA 83.06%
AA 1.46%
AA- 0.36%
Aa3 0.88%
A+ 1.74%
A1 2.10%
A 2.52%
A- 0.81%
A3 0.86%
BBB+ 1.22%
BBB 2.29%
Baa3 2.42%
Short-Term Investment 0.28%
Total 100.00%
</Table>
* Represents percent of total investments.
8
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CONNECTICUT TAX-FREE FUND
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Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges. Therefore, the second line of the table is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were included, your
costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,007.60 $ 2.95
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,022.01 $ 2.97
</Table>
+ Expenses are equal to the Fund's annualized expense ratio of 0.59%
multiplied by the average account value over the period, multiplied by
182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S(a) %*
AAA 68.03%
AA+ 1.15%
Aa1 0.12%
AA 9.30%
AA- 0.48%
Aa3 5.67%
A+ 3.77%
A2 3.28%
A3 1.15%
BBB 5.80%
BBB- 1.13%
Short-Term Investment 0.12%
Total 100.00%
</Table>
(a) Certain investments have not been rated by an independent ratings service
but are, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the
rating shown.
* Represents percent of total investments.
9
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HAWAII TAX-FREE FUND
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,004.80 $ 4.00
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,020.96 $ 4.03
</Table>
+ Expenses are equal to the Fund's annualized expense ratio of 0.80%
multiplied by the average account value over the period, multiplied by
182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S(a) %*
AAA 81.42%
AA 5.00%
Aa2 1.37%
A- 1.96%
BBB+ 7.81%
BBB 2.44%
Total 100.00%
</Table>
(a) Certain investments have not been rated by an independent ratings service
but are, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the
rating shown.
* Represents percent of total investments.
10
<Page>
MINNESOTA TAX-FREE FUND
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,011.10 $ 3.41
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,021.56 $ 3.43
</Table>
+ Expenses are equal to the Fund's annualized expense ratio of 0.68%
multiplied by the average account value over the period, multiplied by
182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S %*
AAA 62.15%
AA+ 11.84%
AA 3.47%
Aa3 0.59%
A 0.90%
A2 3.14%
A- 6.82%
A3 7.32%
Baa1 2.00%
BBB 0.69%
Baa2 1.08%
Total 100.00%
</Table>
* Represents percent of total investments.
11
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MISSOURI TAX-FREE FUND
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,006.90 $ 2.75
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,022.18 $ 2.77
</Table>
+ Expenses are equal to the Fund's annualized expense ratio of 0.55%
multiplied by the average account value over the period, multiplied by
182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S(a) %*
AAA 68.23%
AA+ 5.87%
AA 12.26%
AA- 0.97%
Aa3 0.95%
A+ 1.25%
A2 0.70%
A- 3.35%
A3 0.95%
BBB+ 2.49%
BBB 2.98%
Total 100.00%
</Table>
(a) Certain investments have not been rated by an independent ratings service
but are, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the
rating shown.
* Represents percent of total investments.
12
<Page>
NEW JERSEY TAX-FREE FUND
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,006.80 $ 4.40
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,020.55 $ 4.43
</Table>
+ Expenses are equal to the Fund's annualized expense ratio of 0.88%
multiplied by the average account value over the period, multiplied by
182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S(a) %*
AAA 73.39%
AA+ 1.54%
Aa1 2.54%
AA 4.12%
AA- 5.11%
A+ 0.82%
A 2.40%
A2 3.54%
A- 0.47%
A3 0.78%
BBB+ 0.40%
Baa1 1.55%
BBB 1.94%
BBB- 0.57%
Baa3 0.60%
Short-Term Investment 0.23%
Total 100.00%
</Table>
(a) Certain investments have not been rated by an independent ratings service
but are, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the
rating shown.
* Represents percent of total investments.
13
<Page>
NEW YORK TAX-FREE FUND
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,005.60 $ 3.45
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,021.51 $ 3.48
CLASS C
Actual $ 1,000.00 $ 1,002.20 $ 6.69
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,018.24 $ 6.74
</Table>
+ For each class of the Fund, expenses are equal to the annualized expense
ratio for such class (0.69% for Class A and 1.34% for Class C) multiplied
by the average account value over the period, multiplied by 182/365 (to
reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S %*
AAA 54.70%
AA+ 5.30%
Aa1 0.74%
AA 5.08%
Aa2 0.56%
AA- 10.19%
A+ 8.97%
A 2.53%
A- 0.34%
A3 2.62%
BBB+ 2.98%
Baa1 0.54%
BBB 5.14%
BBB- 0.31%
Short-Term Investment 0.00%**
Total 100.00%
</Table>
(a) Certain investments have not been rated by an independent ratings service
but are, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the
rating shown.
* Represents percent of total investments.
** Amount is less than 0.01%.
14
<Page>
TEXAS TAX-FREE FUND
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,006.10 $ 4.45
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,020.61 $ 4.48
</Table>
+ Expenses are equal to the Fund's annualized expense ratio of 0.89%
multiplied by the average account value over the period, multiplied by
182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S %*
AAA 62.63%
AA+ 9.90%
Aa1 8.36%
AA 1.44%
AA- 1.34%
A+ 5.08%
A 2.48%
A3 0.99%
BBB+ 2.72%
BBB 4.58%
Baa2 0.47%
Short-Term Investment 0.01%
Total 100.00%
</Table>
* Represents percent of total investments.
15
<Page>
WASHINGTON TAX-FREE FUND
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,008.40 $ 3.30
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,021.66 $ 3.33
</Table>
+ Expenses are equal to the Fund's annualized expense ratio of 0.66%
multiplied by the average account value over the period, multiplied by
182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S(a) %*
AAA 82.57%
Aa1 2.33%
AA 3.63%
A3 4.32%
BBB+ 2.42%
BBB 3.02%
Baa3 1.71%
Short-Term Investment 0.00%**
Total 100.00%
</Table>
(a) Certain investments have not been rated by an independent ratings service
but are, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the
rating shown.
* Represents percent of total investments.
** Amount is less than 0.01%.
16
<Page>
INSURED INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,004.30 $ 1.25
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,023.68 $ 1.26
CLASS B
Actual $ 1,000.00 $ 999.50 $ 4.99
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,019.95 $ 5.04
CLASS C
Actual $ 1,000.00 $ 999.50 $ 4.99
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,019.95 $ 5.04
CLASS P
Actual $ 1,000.00 $ 1,003.30 $ 2.25
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,022.64 $ 2.27
</Table>
+ For each class of the Fund, expenses are equal to the annualized expense
ratio for such class (0.25% for Class A, 1.00% for Classes B and C, and
0.45% for Class P) multiplied by the average account value over the period,
multiplied by 182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S %*
AAA 99.99%
Short-Term Investments 0.01%
Total 100.00%
</Table>
* Represents percent of total investments.
17
<Page>
FLORIDA TAX-FREE TRUST
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,006.70 $ 3.90
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,021.05 $ 3.93
CLASS C
Actual $ 1,000.00 $ 1,003.70 $ 7.14
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,017.81 $ 7.19
</Table>
+ For each class of the Fund, expenses are equal to the annualized expense
ratio for such class (0.78% for Class A and 1.43% for Class C) multiplied
by the average account value over the period, multiplied by 182/365 (to
reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S %*
AAA 78.92%
AA 2.04%
A+ 7.11%
A1 0.32%
A 5.17%
BBB+ 3.11%
BBB 3.33%
Short-Term Investment 0.00%**
Total 100.00%
</Table>
* Represents percent of total investments.
** Amount is less than 0.01%.
18
<Page>
GEORGIA TAX-FREE TRUST
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,008.00 $ 1.70
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,023.24 $ 1.72
</Table>
+ Expenses are equal to the Fund's annualized expense ratio of 0.34%
multiplied by the average account value over the period, multiplied by
182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S(a) %*
AAA 67.82%
AA+ 2.10%
AA 9.82%
AA- 0.59%
Aa3 1.34%
A1 0.98%
A 0.96%
A2 0.98%
A- 2.64%
A3 2.08%
BBB+ 4.82%
BBB 4.52%
Baa2 0.50%
Baa3 0.40%
Not Rated 0.45%
Total 100.00%
</Table>
(a) Certain investments have not been rated by an independent ratings service
but are, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the
rating shown.
* Represents percent of total investments.
19
<Page>
HIGH YIELD MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A*
Actual $ 1,000.00 $ 1,027.40 $ 0.00
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,024.93 $ 0.00
CLASS B*
Actual $ 1,000.00 $ 1,026.60 $ 0.81
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,024.13 $ 0.81
CLASS C*
Actual $ 1,000.00 $ 1,025.90 $ 1.01
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,023.95 $ 1.01
CLASS P*
Actual $ 1,000.00 $ 1,026.70 $ 0.00
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,024.93 $ 0.00
</Table>
+ For each class of the Fund, expenses are equal to the annualized expense
ratio for such class (0.00% for Class A, 0.16% for Class B, 0.20% for Class
C and 0.00% for Class P) multiplied by the average account value over the
period, multiplied by 182/365 (to reflect one-half year period).
* The annualized expenses of each class have been restated (0.25% for Class
A, 0.75% for Class B, 0.75% for Class C, and 0.25% for Class P). Had these
restated expenses been in place throughout the most recent fiscal
half-year, expenses paid during the period would have been:
<Table>
<Caption>
HYPOTHETICAL
(5% RETURN
ACTUAL BEFORE EXPENSES)
Class A $ 1.26 $ 1.26
Class B $ 3.79 $ 3.78
Class C $ 3.79 $ 3.78
Class P $ 1.26 $ 1.26
</Table>
20
<Page>
HIGH YIELD MUNICIPAL BOND FUND (CONTINUED)
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S %*
AAA 2.53%
AA+ 0.20%
Aa1 0.33%
AA 0.39%
AA- 0.34%
Aa3 2.63%
A1 0.35%
A- 0.88%
A3 1.54%
BBB+ 0.29%
Baa1 0.44%
BBB 20.16%
Baa2 0.03%
BBB- 6.31%
Baa3 2.61%
BB+ 3.30%
Ba1 2.14%
BB 0.65%
Ba2 0.70%
BB- 0.56%
B1 0.21%
B 4.47%
B2 3.00%
B- 6.10%
CCC 0.72%
Not Rated 39.12%
Short-Term Investments 0.00%**
Total 100.00%
</Table>
* Represents percent of total investments.
** Amount is less than 0.01%.
21
<Page>
MICHIGAN TAX-FREE TRUST
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,007.90 $ 2.75
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,022.31 $ 2.77
</Table>
+ Expenses are equal to the Fund's annualized expense ratio of 0.55%
multiplied by the average account value over the period, multiplied by
182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S(a) %*
AAA 86.54%
AA+ 1.38%
AA 6.93%
BBB+ 1.50%
Baa1 0.50%
BBB 2.62%
BBB- 0.53%
Total 100.00%
</Table>
(a) Certain investments have not been rated by an independent ratings service
but are, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the
rating shown.
* Represents percent of total investments.
22
<Page>
PENNSYLVANIA TAX-FREE TRUST
- --------------------------------------------------------------------------------
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
10/1/05 -
10/1/05 3/31/06 3/31/06
------- ------- -------
CLASS A
Actual $ 1,000.00 $ 1,004.00 $ 3.60
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,021.32 $ 3.63
</Table>
+ Expenses are equal to the Fund's annualized expense ratio of 0.72%
multiplied by the average account value over the period, multiplied by
182/365 (to reflect one-half year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
MARCH 31, 2006
CREDIT RATING:
<Table>
<Caption>
S&P OR MOODY'S(a) %*
AAA 70.16%
AA+ 2.08%
AA 8.10%
AA- 1.61%
Aa3 1.28%
A+ 1.55%
A1 2.74%
A 1.08%
A- 2.16%
BBB+ 4.40%
BBB 4.32%
Baa3 0.52%
Total 100.00%
</Table>
(a) Certain investments have not been rated by an independent ratings service
but are, in Lord, Abbett & Co. LLC's opinion, of comparable quality to the
rating shown.
* Represents percent of total investments.
23
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 99.99%
ACUTE CARE HOSPITAL 0.43%
MA St Hlth & Edl Facs Auth Rev
UMass Mem Issue Ser D 5.00% 7/1/2033 BBB $ 2,500 $ 2,470,475
---------------
EDUCATION 13.12%
Allegheny Cnty PA Higher Ed
Bldg Auth Carnegie Mellon Univ 5.125% 3/1/2032 AA- 2,000 2,068,300
Allegheny Cnty PA Higher Ed
Bldg Auth Univ Rev Ref Ser A(c) 4.75% 2/15/2026 Baa3 500 489,895
CA Edl Facs Auth Rev
Univ South CA Ser A 5.00% 10/1/2033 AA+ 10,000 10,315,100
DE St Econ Dev Auth Rev
DE Tech Pk Univ DE Pj(2) 6.00% 2/1/2021 AAA 900 979,578
Dist of Columbia Rev James F
Oyster Elem Sch Pilot(1) 6.25% 11/1/2021 A 450 478,390
Erie Cnty NY Indl Dev Agy Sch
Fac Rev City Sch Dist Buffalo Pj(12) 5.00% 5/1/2012 AAA 1,500 1,596,750
Glendale AZ Ind Dev Auth
Midwestern Univ Ser A 5.75% 5/15/2021 A- 1,000 1,079,150
Glendale AZ Ind Dev Auth
Midwestern Univ Ser A 5.875% 5/15/2031 A- 1,000 1,071,020
HI St Dept Bdgt & Fin Spl
Purp Rev Chaminade Univ Honolulu(17) 4.70% 1/1/2031 AA(b) 1,270 1,257,084
HI St Dept Bdgt & Fin Spl
Purp Rev Mid Pacific Institute(17) 5.00% 1/1/2026 AA 1,535 1,587,528
IA Higher Ed Ln Auth Rev Ref
Wartburg Ser A 5.30% 10/1/2037 BBB-(b) 3,000 2,955,240
LA St Univ & Agric & Mech
College Hlth Sciences Ctr Pj(16) 6.375% 5/1/2031 AAA 2,290 2,511,924
MA St Dev Fin Agy Rev Boston
Univ Ser P 5.375% 5/15/2039 A3 1,000 1,065,660
MA St Dev Fin Agy Rev Boston
Univ Ser P 6.00% 5/15/2059 A3 1,000 1,133,570
MA St Hlth & Edl Fac Auth Rev
Bost College Ser N(15)(16) 5.125% 6/1/2033 AAA 3,810 3,970,630
MD St Hlth & Higher Edl Facs Auth Rev
MD Inst College of Art 5.00% 6/1/2030 Baa1 2,500 2,531,625
MD St Hlth & Higher Edl Facs Auth Rev
MD Inst College of Art 5.00% 6/1/2035 Baa1 1,925 1,941,671
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MI Higher Ed Student Ln Auth Rev
Student Ln Ser XVII-P AMT GTD(2) 4.875% 3/1/2030 AAA $ 3,180 $ 3,146,642
Milledgeville-Baldwin Cnty GA Fndtn
GA St College & St Univ 6.00% 9/1/2033 BBB 3,000 3,255,090
NY New York City Indl Dev Agy Civic
Fac Rev American Natl Red Cross Pj(2) 4.50% 2/1/2030 Aaa 1,390 1,362,047
NY St Dorm Auth Rev Fashion
Inst Tech(12) 5.50% 7/1/2030 AAA 400 426,376
OR St Hlth Hsg Ed & Cul Facs
Auth Reed College Pj Ser A 5.75% 7/1/2032 AA- 3,800 4,048,976
TN St Sch Bd Auth Higher Edl
Facs Ser A(12) 5.125% 5/1/2021 AAA 615 653,315
Tulsa OK Ind Auth Rev Ser A(16) 5.375% 10/1/2020 Aaa 3,170 3,362,165
Univ Central AR Rev Hsg Sys(12) 6.50% 1/1/2031 AAA 2,425 2,678,801
Univ MA Bldg Auth Sen Comwlth
Ser 4-A(16) 5.125% 11/1/2034 AAA 5,000 5,230,950
Univ NC Sys Pool
Rev Ser A(2) 5.00% 4/1/2027 AAA 1,800 1,873,782
Univ NC Univ Rev Gen 5.00% 12/1/2028 AA+ 2,015 2,098,058
Univ VA Univ Rev Residuals
Ser 856 RIBs 6.57% 6/1/2019 Aaa 1,925 2,120,734
Univ VA Univ Rev Residuals
Ser 856 RIBs 6.57% 6/1/2020 Aaa 2,022 2,235,833
Univ VA Univ Rev Residuals
Ser 856 RIBs 6.57% 6/1/2021 Aaa 2,122 2,335,641
Univ VT & St Agric College VT(2) 5.125% 10/1/2037 AAA 1,150 1,199,910
WV Univ Rev Univ Sys WV Pj
Ser A(2) Zero Coupon 4/1/2024 AAA 2,880 1,242,115
WV Univ Rev Univ Sys WV Pj
Ser A(2) Zero Coupon 4/1/2026 AAA 800 310,576
---------------
TOTAL 74,614,126
---------------
GENERAL OBLIGATION 13.35%
Bessemer AL School Warrants(2) 5.60% 2/1/2030 Aaa 2,000 2,137,060
Birmingham MI City Sch Dist Sch
Bldg and Site(12) 5.00% 11/1/2027 AAA 5,000 5,223,050
CA St 5.10% 2/1/2034 A 4,655 4,720,542
CA St 5.25% 4/1/2034 A 7,500 7,894,500
CA St Rep 5.25% 2/1/2029 A 10,000 10,477,600
Campbell CA Unif Sch Dist
Election 2002 Ser B(11) 5.50% 8/1/2033 AAA 5,000 5,442,950
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Delaware Vly PA Regl Fin Auth
Loc Govt Rev Ser C(2) 7.75% 7/1/2027 AAA $ 1,000 $ 1,400,120
Fairfield OH City Sch Dist
Ref Sch Impt(11) 5.375% 12/1/2020 AAA 1,410 1,530,950
Farmington NM Pollutn Ctrl Rev
San Juan Pj B 4.875% 4/1/2033 BBB 2,500 2,486,975
Foothill-De Anza CA Cmnty
College Dist Cap Apprec(16) Zero Coupon 8/1/2030 AAA 4,505 1,421,192
HI St Ser DG(2) 5.00% 7/1/2009 AAA 3,000 3,121,560
Jefferson Cnty AL Sch Warrants(12) 5.50% 2/15/2020 AAA 1,000 1,055,690
Marion OH City Sch Dist Sch
Fac Constr & Impt(12) 5.625% 12/1/2022 AAA 500 538,110
New York NY Ser K 5.00% 8/1/2023 A+ 4,140 4,302,329
New York NY Unrefunded Bal Ser A 6.00% 5/15/2030 A+ 20 21,616
OR St Alternate Energy Pj Ser A AMT 5.00% 1/1/2015 AA- 1,315 1,340,498
OR St Alternate Energy Pj Ser A AMT 5.05% 1/1/2016 AA- 1,795 1,837,703
OR St Alternate Energy Pj Ser A AMT 5.10% 1/1/2017 AA- 980 1,003,295
Powell OH(11) 5.50% 12/1/2032 AAA 1,280 1,371,827
Richland Cnty SC 5.375% 3/1/2030 AA 1,140 1,228,738
Richland Cnty SC 5.375% 3/1/2031 AA 1,195 1,286,525
Richland Cnty SC 5.375% 3/1/2032 AA 1,255 1,348,774
Richland Cnty SC 5.375% 3/1/2033 AA 1,320 1,416,175
Richmond VA(12) 5.50% 1/15/2018 AAA 500 538,690
Sunnyvale TX Sch Dist Sch
Bldg PSF GTD 5.25% 2/15/2028 AAA 1,000 1,060,010
Sunnyvale TX Sch Dist Sch
Bldg PSF GTD 5.25% 2/15/2031 AAA 1,100 1,161,512
Tob Settlmnt Fin Corp
NY Series C-1 5.50% 6/1/2019 AA- 5,000 5,407,500
Washtenaw Cnty MI Multi Lake
Santn Swr Sys Sylvan Twp Wtr(16) 4.75% 5/1/2021 AAA 700 712,628
Wood Cnty OH Pub Libr Impt(16) 5.875% 12/1/2022 Aaa 1,000 1,104,250
WV St Ser D(11) 6.50% 11/1/2026 AAA 2,000 2,436,360
Wyandotte Cnty KS Sch 204
Bonner Springs Ser A(12) 5.60% 9/1/2020 Aaa 855 907,950
---------------
TOTAL 75,936,679
---------------
HEALTHCARE 18.33%
Abag Fin Auth for Nonprofit
Corp CA Woods Oblig COP(1) 6.20% 11/1/2029 A 1,000 1,075,670
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
AZ Hlth Fac Auth Rev AZ
Hlthcare Pooled Fin C(11) 5.50% 6/1/2014 Aaa $ 1,130 $ 1,239,486
Birmingham Baptist Med Ctr
AL Spl Care Facs Fin Auth Rev
Baptist Hlth Sys Ser A 5.00% 11/15/2030 Baa1 3,250 3,177,817
Brazos Cnty TX Hlth Fac Dev
Franciscan Svcs Corp Oblig Grp 5.375% 1/1/2032 A- 1,605 1,648,287
CA Statewide Cmntys Dev Auth
Rev Daughters of Charity Hlth A 5.25% 7/1/2035 BBB+ 4,995 5,082,412
Chatham Cnty GA Hosp Auth Rev
Hosp Impt Mem Hlth Univ A 5.50% 1/1/2034 A- 1,990 2,092,127
Clackamas Cnty OR Hosp Fac
Legacy Hlth Sys(15)(16) 5.00% 2/15/2015 AAA 1,600 1,672,000
Clackamas Cnty OR Hosp Fac
Legacy Hlth Sys(15)(16) 5.00% 2/15/2016 AAA 1,000 1,041,470
CO Hlth Fac Auth Rev
Catholic Hlth 5.25% 9/1/2024 AA 5,065 5,247,745
CO Hlth Fac Auth Rev Hosp
Poudre Vly Hlthcare F 5.00% 3/1/2025 BBB+ 5,560 5,579,571
Coffee Cnty GA Hosp Auth Rev
Ref Coffee Regl Med Ctr Inc Pj 5.00% 12/1/2015 BBB+ 1,000 1,019,650
Coffee Cnty GA Hosp Auth Rev
Ref Coffee Regl Med Ctr Inc Pj 5.00% 12/1/2026 BBB+ 2,000 1,979,540
CT St Hlth & Edl Facs Auth
Rev Kent Sch Ser D(16) 4.375% 7/1/2023 Aaa 350 346,013
Erie Cnty OH Hosp Facs Rev
Firelands Regl Med Ctr Ser A 5.50% 8/15/2022 A 1,000 1,044,810
Fargo ND Hlth Sys Rev
Meritcare Oblig Grp A(16) 5.375% 6/1/2027 AAA 1,000 1,036,620
Hamilton Cnty OH Hosp Facs
Cincinnati Childrens Hosp J(11) 5.25% 5/15/2034 AAA 3,395 3,568,620
Hannibal MO Indl Dev Auth
Hlth Facs Rev(c) 5.00% 3/1/2019 BBB+ 1,675 1,730,443
Hlthcare Auth For Baptist
Hlth AL Ser D 5.00% 11/15/2017 A3 1,250 1,290,288
Hlthcare Auth For Baptist
Hlth AL Ser D 5.00% 11/15/2018 A3 750 771,885
Hlthcare Auth For Baptist
Hlth AL Ser D 5.00% 11/15/2021 A3 1,200 1,225,656
IL Fin Auth Rev Northwestern
Mem Hosp Ser A 5.25% 8/15/2034 AA+ 10,000 10,488,800
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Johnson City TN Hlth & Edl
Facs Bd Hosp Rev First Mtg Mtn
Sts Hlth Ser A 5.50% 7/1/2036 BBB+ $ 2,000 $ 2,085,720
Kent Hosp Fin Auth MI Rev
Met Hosp Pj Ser A 6.00% 7/1/2035 BBB 2,125 2,277,426
KY Econ Dev Fin Auth Norton
Hlthcare Inc Ser A(16) Zero Coupon 10/1/2025 AAA 4,300 1,709,336
Lauderdale Cnty & Florence AL
Hlthcare Rev Coffee Hlth Ser A(16) 6.00% 7/1/2029 AAA 1,000 1,090,420
Louisiana Pub Facs Auth Rev
Pennington Med Fndtn Rev 5.00% 7/1/2031 A3 1,000 1,007,900
Lubbock TX Hlth Fac Dev Corp.
Rev Sears Plains Pj(13) 5.70% 1/20/2041 AAA 2,490 2,633,026
MA St Hlth & Edl Facs Auth Rev
Milton Hosp Ser D 5.375% 7/1/2035 BBB- 2,500 2,533,400
Maricopa Cnty AZ Hosp Rev Sun
Hlth Corp 5.00% 4/1/2025 Baa1 2,500 2,523,425
MI St Hosp Fin Auth Rev
Marquette Gen Hosp Oblig Grp A 5.00% 5/15/2034 Baa1 1,250 1,235,050
Minneapolis & St Paul MN Hsg
Hlthpartners Oblig Grp Pj 5.875% 12/1/2029 BBB+ 2,100 2,212,812
MO St Hlth & Edl Facs Auth
PA 1049 RIBs RITES(2) 9.047% 6/1/2010 AAA(a) 855 1,086,979
Monongalia Cnty WV Bldg
Cmnty Hosp Rev Monongalia
Gen Hosp Ser A 5.25% 7/1/2035 A- 2,000 2,026,140
MS Hosp Equip & Fac Forrest
Cnty Auth Gen Hosp Pj(12) 6.00% 1/1/2030 Aaa 615 668,782
NH Hlth & Edl Fac Auth Rev 6.00% 10/1/2024 A+ 250 273,330
NH Hlth & Edl Fac
Dartmouth-Hitchcock Oblig Grp(12) 5.50% 8/1/2027 AAA 3,500 3,786,440
NH Hlth & Edl Fac Exeter Pj 5.75% 10/1/2031 A+ 1,550 1,632,259
NH St Hlth & Ed Concord Hosp(12) 5.50% 10/1/2021 Aaa 710 756,164
NJ Hlthcare Fac Fin Auth Rev
Robert Wood Johnson Univ Hosp 5.75% 7/1/2031 A2 3,065 3,268,332
NJ Hlthcare Facs Fin Auth Rev
Hunterdon Medical Ctr Ser A 5.125% 7/1/2035 A- 1,000 1,019,480
NY St Dorm Auth Revs Catholic
Hlth Long Island Oblig Grp 5.00% 7/1/2027 Baa1 2,250 2,260,395
OR St Hlth Hsg Ed & Cultural
Fac Auth Rev(2) 5.25% 11/15/2019 AAA 2,000 2,132,160
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Plymouth MN Hlth Fac Rev West
Hlth Pj Ser A(12) 6.125% 6/1/2024 AAA $ 2,990 $ 3,001,272
RI St Hlth & Ed Bldg Roger
Williams Rlty(9) 6.50% 8/1/2029 AA 1,240 1,371,948
SC Jobs Econ Dev Auth Hosp
Facs Rev 6.375% 8/1/2034 BBB+ 220 244,169
St Cloud MN Hlthcare Rev Hosp
Oblig Group Ser A(12) 6.25% 5/1/2018 Aaa 3,320 3,648,614
Tyler TX Hlth Fac Dev Corp
Hosp Rev Mother Frances Hosp 6.00% 7/1/2027 Baa1 1,500 1,560,675
WI St Hlth & Edl Facs Auth Rev
Marshfield Clinic Ser A 5.125% 2/15/2026 BBB+ 1,300 1,318,512
WI St Hlth & Edl Facs Auth Rev
Marshfield Clinic Ser A 5.375% 2/15/2034 BBB+ 2,500 2,562,325
---------------
TOTAL 104,285,40
---------------
HOUSING 4.48%
ID Hsg & Fin Assn SF Mtg AMT 5.25% 7/1/2033 Aaa 125 126,567
ID Hsg Agy Sing Fam Mtg
Ser F AMT(7)(9) 7.45% 7/1/2015 Aaa 115 115,830
Kansas City MO Ind Dev Auth
No Oak Crossing Sr Ser A-1 AMT(2) 5.30% 12/1/2020 AAA 1,055 1,078,168
KY Hsg Corp Hsg Rev Ser D AMT 5.25% 7/1/2022 AAA 500 511,385
LA Hsg Fin Agy Mtg Rev Sing
Fam Hmownr B AMT(14) 5.80% 6/1/2036 Aaa 2,000 2,146,640
MD St Cmnty Dev Admin Dept
Hsg & Cmnty Dev Ser B AMT 5.375% 9/1/2022 Aa2 4,160 4,230,637
MD St Cmnty Dev Admin
Residential Ser F AMT 5.50% 9/1/2022 Aa2 2,500 2,547,125
Minneapolis St Paul MN Hsg
Fin Rev Sing Fam Mtg Ser AB AMT(14) 6.25% 11/1/2030 AAA 190 200,328
MN St Hsg Fin Agy Sing Fam
Mtg Ser G-1 AMT 5.60% 7/1/2022 AA+ 205 209,164
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Hmownr Ln Pg A-1 AMT(14) 5.90% 9/1/2035 AAA 1,955 2,075,721
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Hmownr Ln Ser B-1 AMT(14) 6.25% 3/1/2031 AAA 135 136,057
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Ser E-1 AMT(14) Zero Coupon 3/1/2029 AAA 400 114,408
MT St Bd Hsg Sing Fam Mtg
Ser A-1(7)(9) 6.05% 12/1/2037 AA+ 4,255 4,379,544
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
NC Hsg Fin Agy Sing Fam Rev
Ser BB AMT 6.25% 3/1/2012 AA $ 400 $ 403,804
New Orleans LA Fin Auth Mtg
Rev Ser B-2 AMT(14) 6.00% 12/1/2018 Aaa 280 282,411
OK Hsg Fin Agy Sing Fam Mtg
Ser B-1(14) 5.30% 9/1/2026 Aaa 60 61,199
OK Hsg Fin Agy Sing Fam Rev
Cap Apprec Ser D-1(14) Zero Coupon 3/1/2029 Aaa 2,345 697,684
OK Hsg Fin Agy Sing Fam Rev
Mtg Hmownr Ser B-1 Zero Coupon 3/1/2029 Aaa 1,250 362,513
OK Hsg Fin Agy Sing Fam Rev
Mtg Hmownr Ser D-2 AMT(14) Zero Coupon 9/1/2030 Aaa 1,115 244,018
Pinellas Cnty FL Hsg Fin Auth
Sing Fam Hsg Rev Multi Cnty Pg
Ser A-1 AMT(14) 5.50% 9/1/2035 Aaa 940 986,605
Prince Georges Cnty MD Hsg
Sing Fam Ser A AMT(8)(14) 6.15% 8/1/2019 AAA 5 5,172
VT Hsg Fin Agy Sing Fam Hsg
Ser 16-A AMT(12) 5.50% 11/1/2021 AAA 2,125 2,174,003
WV St Hsg Dev Fd Hsg Fin
Ser B AMT 5.25% 11/1/2018 AAA 2,345 2,367,981
---------------
TOTAL 25,456,964
---------------
INDUSTRIAL 2.40%
Bayonne NJ Redev Agy Royal
Caribbean Pj Ser A AMT 5.375% 11/1/2035 BBB- 750 761,152
Clark Cnty NV Indl Dev Rev
Ser C AMT(2) 5.95% 12/1/2038 AAA 3,320 3,606,649
Fulton Cnty GA Dev Auth Loc
Dist Cooling Fac Rev Sr Maxon
Atlantic Station A AMT 5.125%# 3/1/2026 BBB 500 490,500
Jacksonville FL Swr & Solid
Wst Disp Fac Rev Anheuser AMT 5.875% 2/1/2036 A+ 500 511,620
NJ Econ Dev Auth Econ Dev Rev
Kapkowski Rd Landfill Pj 6.50% 4/1/2028 Baa3 2,325 2,747,429
RI St Econ Dev Providence
Place Mall(17) 6.125% 7/1/2020 AA 550 599,351
Texas City TX Indl Dev Corp
Marine Term Rev Arco Pipe Line 7.375% 10/1/2020 AA+ 650 840,847
TSASC Inc NY Ser 1 5.00% 6/1/2026 BBB 4,150 4,102,981
---------------
TOTAL 13,660,529
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
LEASE 3.71%
AZ St Ser A COP(16) 5.00% 11/1/2020 AAA $ 200 $ 208,056
Bemidji MN Lease Rev MN St
Bureau Criminal Appreh(16) 5.75% 12/1/2018 Aaa 555 584,215
Bemidji MN Lease Rev MN St
Bureau Criminal Appreh(16) 5.75% 12/1/2019 Aaa 315 331,582
Charlotte NC Govt Fac Pj Ser G COP 5.375% 6/1/2026 AA+ 2,250 2,416,117
CO St Dept Corrections
CO St Penitentiary II Pj B COP(2) 5.00% 3/1/2016 AAA 750 798,180
Grand Rapids MI Pub Sch(16) 5.00% 11/1/2021 AAA 250 260,645
Greenville Cnty SC Sch Dist
Installment Pur Rev BEST 5.50% 12/1/2028 AA- 5,500 5,972,835
Henrico Cnty VA Eco Dev Auth
Pub Fac Lease Rev Jail Pj 6.125% 11/1/2019 Aa1 1,000 1,097,610
Lancaster Edl Assistance Sch
Dist Lancaster Cnty Pj 5.00% 12/1/2029 BBB+ 1,750 1,747,480
McClain Cnty OK Econ Rev Dev
Auth Edl Facs Lease Rev New Castle
Pub Schs Pj 5.00% 9/1/2012 BBB+ 500 516,570
McClain Cnty OK Econ Rev Dev
Auth Edl Facs Lease Rev New Castle
Pub Schs Pj 5.00% 9/1/2013 BBB+ 895 925,161
Murray City UT Muni Bldg Auth
Lease Rev Ser A(2) 5.30% 12/1/2021 Aaa 2,925 3,091,345
Spartanburg Cnty SC Sch Dist
McCarthy Teszler Pj(19) 5.00% 3/1/2022 AAA 1,000 1,039,140
St Paul MN Port Auth Lease
Rev Office Bldg 5.00% 12/1/2022 AA+ 1,000 1,035,400
West Vly City UT Muni Bldg(2) 5.50% 8/1/2027 AAA 1,000 1,076,060
---------------
TOTAL 21,100,396
---------------
MISCELLANEOUS 6.38%
AZ Tourism & Sports Auth Tax Rev
Multipurpose Stadium Fac Ser A(16) 5.00% 7/1/2031 Aaa 670 697,597
George L Smith II GA World
Congress Ctr Auth Rev AMT(16) 5.75% 7/1/2015 AAA 1,500 1,594,080
George L Smith II GA World
Congress Ctr Rev AMT(16) 5.50% 7/1/2020 AAA 700 735,252
LA Loc Govt Env Fac Pkg Fac
Garage Pj Ser A(2) 5.375% 10/1/2026 AAA 1,500 1,580,340
Larimer Cnty CO Sales & Use
Tax Rev Fairgrounds & Events(16) 5.00% 12/15/2019 AAA 750 783,315
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MA St Wtr Pollutn Abatement
Tr PA 1221 RIBs RITES 6.53% 8/1/2011 AAA(b) $ 4,500 $ 5,031,630
Memphis-Shelby Cnty TN Sports
Memphis Arena Pj(2) 5.25% 11/1/2023 AAA 1,765 1,878,754
Miami-Dade Cnty FL Spl Oblig
Fltg Rate Cap Asset Acq Ser A RIBs(11) 3.676% 4/1/2014 AAA 3,300 3,300,000
New York Convention Ctr Dev Corp
NY Rev Hotel Unit Fee Secd(2) 5.00% 11/15/2025 AAA 2,375 2,500,827
Omaha Convention Hotel Corp
PA 1078 RIBs RITES(2) 6.257% 4/1/2010 AAA(a) 5,000 5,394,000
Portland OR Urb Ren & Redev
Downtown Wtrfront Ref Ser A(2) 5.50% 6/15/2020 Aaa 650 694,070
Portland OR Urb Ren & Redev
|Downtown Wtrfront Ref Ser A(2) 5.75% 6/15/2019 Aaa 1,500 1,622,100
Puerto Rico Pub Bldgs Auth
Rev Govt Facs Ser I GTD 5.25% 7/1/2033 BBB 5,000 5,196,100
Univ FL Res Fndtn Inc Cap Impt Rev(2) 5.125% 9/1/2033 Aaa 4,000 4,102,080
Westminster CO Sales & Use
Tax Ref Rev(2) 5.25% 12/1/2022 AAA 1,090 1,158,398
---------------
TOTAL 36,268,543
---------------
POWER 2.86%
Brazos River Auth TX Pollutn Ctrl Rev
TXU Energy Co LLC Pj AMT 5.00% 3/1/2041 Baa2 2,125 2,114,460
Grant Cnty WA Pub Util Dist
No 2 Pr Rap Hydro 2nd Ser B AMT(16) 5.375% 1/1/2018 AAA 300 313,779
Long Island Pwr Auth NY Elec Sys Rev
Gen Ser B 5.25% 12/1/2014 A- 2,465 2,649,209
Los Angeles CA Wtr & Pwr Rev
Pwr Sys Ser A-A1(12) 5.25% 7/1/2020 AAA 2,600 2,762,188
MA St Dev Fin Agy Solid Wst Disp Rev
Dominion Energy Brayton Point AMT 5.00%# 2/1/2036 Baa1 2,200 2,216,830
Sacramento CA Muni Util Dist
Ref Ser T(11) 5.00% 5/15/2030 AAA 5,000 5,192,200
SC St Pub Svc(12) 5.25% 1/1/2019 AAA 950 1,017,365
---------------
TOTAL 16,266,031
---------------
PRE-REFUNDED 18.61%
Akron OH Impt 5.80% 11/1/2020 AA- 575 629,953
Athens OH City Sch Dist Fac
Constr & Impt(12) 6.00% 12/1/2024 AAA 500 552,730
Baltimore MD Rev Wtr Pj Ser A(12) 6.00% 7/1/2018 AAA 285 310,362
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Baltimore MD Rev Wtr Pj Ser A(12) 6.00% 7/1/2020 AAA $ 275 $ 299,472
Boise City ID Lease Rev Urban
Renewal ADA Cnty Courts(2) 6.25% 8/15/2019 AAA 7,385 8,052,161
Brighton Twp MI Sntn Sew
Drainage Dist(12) 5.25% 10/1/2018 AAA 1,615 1,688,466
Broad River NC Wtr Auth
Wtr Sys Rev(16) 5.375% 6/1/2026 Aaa 400 429,484
Canton OH Sch Dist Var
Purp Ser A(16) 5.625% 12/1/2023 AAA 2,900 3,135,306
Chisholm Creek Util Auth KS
Bel Aire & Park City KS Pj(16) 5.25% 9/1/2020 Aaa 320 345,206
CO Hlth Fac Auth Rev Hosp
Portercare Adventis Hlth 6.625% 11/15/2026 A2 2,000 2,297,000
Cobb Cnty GA Kennestone Hosp
Auth Rev Ctfs Ser 86 A ETM(16) Zero Coupon 8/1/2015 AAA 1,000 564,990
Culpeper Cnty VA Sch(12) 6.00% 1/15/2021 AAA 690 752,203
Dallas TX 5.75% 2/15/2020 AA+ 1,615 1,731,813
Dallas TX Indpt Sch Dist PSF GTD 5.50% 2/15/2017 AAA 5,000 5,439,850
DE Transn Auth Transn Sys Rev Sr 6.00% 7/1/2020 AA 6,215 6,768,073
Detroit MI Wtr Supply Sys Sr
Lien Ser A(11) 5.75% 7/1/2028 AAA 1,500 1,652,235
Fayette Cnty GA Pub Fac Auth
Criminal Justice Ctr Pj 6.00% 6/1/2030 AA 3,500 3,841,565
Georgetown Cnty SC Sch Dist(12) 5.25% 3/1/2020 AAA 2,485 2,648,215
Harris Cnty TX Hlth Facs
Dev Corp Hosp Rev Mem Hermann
Hlthcare Ser A 6.375% 6/1/2029 A 2,500 2,823,025
Highlands Cnty FL Hlth Facs Auth
Rev Hosp Adventist/Sunbelt Ser A 6.00% 11/15/2031 A+ 2,755 2,967,851
IA Fin Auth Rev ETM 5.25% 8/15/2021 Aa2 235 239,094
Jackson OH Hosp Fac Rev Cons
Hlth Sys Jackson Hosp(17) 6.125% 10/1/2023 AA 680 740,656
Lake Orion MI Cmnty Sch Dist Ser B 5.25% 5/1/2025 AA 4,900 5,180,721
Lane Cnty OR Sch Dist No 052 5.625% 6/15/2020 Aa3 800 858,952
Lauderdale Cnty & Florence AL
Hlthcare Auth Rev(16) 5.75% 7/1/2019 AAA 2,000 2,092,900
Linn Cnty OR Sch Dist No 55(12) 5.50% 6/15/2025 AAA 1,935 2,096,224
Linn Cnty OR Sch Dist No 55
Sweet Home(12) 5.50% 6/15/2020 AAA 1,000 1,083,320
Linn Cnty OR Sch Dist No 55
Unrefunded Bal(12) 5.50% 6/15/2025 AAA 310 335,829
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MD St Hlth & Higher Edl Facs
Auth Rev North Arundel Hosp 6.50% 7/1/2026 A $ 1,000 $ 1,114,910
MD St Hlth & Higher Edl Facs
Catholic Hlth Initiative Ser A ETM 6.00% 12/1/2024 AA 100 108,030
MD St Hlth & Higher Edl Facs
Univ MD Med Sys 6.75% 7/1/2030 A3 1,950 2,188,914
Mesa AZ Indl Dev Auth
Discovery Hlth Sys Ser A(16) 5.75% 1/1/2025 AAA 750 807,810
New York NY Ser A 6.00% 5/15/2030 A+ 2,155 2,363,453
NJ St Transn Tr Fd Auth
Transn Sys Ser B 6.00% 6/15/2019 AAA 2,550 2,774,731
NM St Hosp Equip Ln Council Hosp
Rev Presbyterian Hlthcare Ser A 5.50% 8/1/2025 AA- 2,000 2,171,640
North Providence RI Ser A(16) 6.125% 7/1/2016 AAA 1,410 1,480,528
Orange Cnty FL Hlth Facs Auth
Rev Hosp Orlando Regl Hlthcare 5.75% 12/1/2027 A 1,000 1,107,470
Paragould AR Wtr Swr & Elec Rev(2) 5.65% 12/1/2025 AAA 615 665,553
Paw Paw MI Pub Sch Dist Sch
Bldg & Site 6.00% 5/1/2030 AA 550 598,048
Philadelphia PA Sch Dist Ser A(12) 5.75% 2/1/2030 AAA 1,200 1,306,560
Phoenix AZ Civic Impt Corp(11) 6.00% 7/1/2024 AAA 2,400 2,634,120
Providence RI Redev Agy Rev
Pub Safety & Muni Bldgs Ser A(2) 5.75% 4/1/2029 Aaa 415 448,744
RI St Econ Dev Corp Arpt Rev Ser B(11) 6.00% 7/1/2020 AAA 1,210 1,321,562
RI St Econ Dev Corp Arpt Rev Ser B(11) 6.00% 7/1/2028 AAA 1,200 1,305,720
RI St Hlth & Edl Bldg Corp Rev
Hosp Fin Lifespan Oblig Grp 6.50% 8/15/2032 A- 1,000 1,145,160
SC Jobs Econ Dev Auth Hosp
Facs Rev Palmeto Hlth C 6.375% 8/1/2034 BBB+ 1,780 2,042,283
SC Jobs Econ Dev Auth Hosp Fac Rev 7.375% 12/15/2021 BBB+(b) 2,000 2,327,780
South Washington Cnty MN
Indpt Sch Dist No 833 Ser A(16) 5.50% 2/1/2018 AAA 5,065 5,379,486
South Washington Cnty MN
Indpt Sch Dist No 833 Ser A(16) 5.50% 2/1/2019 AAA 2,990 3,175,649
Sullivan Cnty TN Hlth Edl & Hsg
Facs Bd Rev Hosp Wellmont Hlth 6.25% 9/1/2022 BBB+ 1,250 1,420,988
Sullivan Cnty TN Hlth Edl & Hsg
Facs Bd Rev Hosp Wellmont Hlth 6.25% 9/1/2022 BBB+ 750 852,593
Sunman Dearborn IN Inter Sch
Bldg Corp First Mtg(11) 5.00% 1/15/2021 AAA 1,105 1,172,560
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Teays Vly OH Loc Sch Dist Sch
Facs Constr & Impt(11) 5.375% 12/1/2020 Aaa $ 500 $ 535,270
TN St Sch Bd Auth Higher Edl
Facs Ser A 5.625% 5/1/2030 AA- 150 160,994
VA St Pub Bldg Auth Pub Fac
Rev Ser A 5.75% 8/1/2020 AA+ 600 647,190
White Hsg Util Dist TN
Robertson/Sumner Cntys Wtr/Swr(12) 6.00% 1/1/2026 Aaa 1,090 1,177,909
Whitehall MI Dist Sch 5.50% 5/1/2019 AA 1,400 1,520,666
WV St St Road(16) 5.75% 6/1/2025 AAA 1,800 1,954,836
York Cnty VA Swr Rev 5.875% 6/1/2024 Aa3 330 354,829
---------------
TOTAL 105,823,642
---------------
RESOURCE RECOVERY 0.84%
Cobb Cnty GA Dev Auth
Solid Wst Disp Rev GA Wst Mgt Pj
Ser A AMT 3.65%# 4/1/2033 BBB 1,500 1,491,195
MI St Strategic Fd Solid Wst Disp Rev
Ref Ltd Oblig Wst Mgmt AMT 4.50% 12/1/2013 BBB 1,500 1,503,780
MO St Envr Impt & Enrg
Unrefunded Bal St Revolving B 7.20% 7/1/2016 Aaa 1,245 1,256,628
PA Econ Dev Fin Auth
Solid Wst Disp Rev Mgt Inc Pj A AMT 5.10% 10/1/2027 BBB 500 500,425
---------------
TOTAL 4,752,028
---------------
SPECIAL TAX 1.08%
Ernest N Morial New Orleans
LA Exhibit Hall Auth Spl Tax RIBs 7.176% 7/15/2028 AAA 5,000 5,384,900
Salida CA Area Pub Fac Fin Agy
Cmnty Fac Dist Spl Tax B No 1998-1(12) 5.25% 9/1/2028 AAA 355 368,455
San Juan Cnty NM Tax/Motor
Ref & Impt(15)(16) 5.25% 5/15/2022 AAA 390 415,962
---------------
TOTAL 6,169,317
---------------
TOLL ROADS 1.30%
NJ St Tpk Auth Rev Rols RR II
R 323 RIBs(2) 6.709% 1/1/2035 Aaa 7,000 7,417,060
---------------
TRANSPORTATION 5.11%
AK St Intl Arpts Revs
Ser A AMT(16) 5.00% 10/1/2020 AAA 1,000 1,036,350
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Billings MT Arpt Rev AMT(16) 6.10% 7/1/2016 AAA $ 190 $ 206,979
Billings MT Arpt Rev AMT(16) 6.20% 7/1/2020 AAA 2,775 3,029,107
Chicago IL O Hare Intl Arpt
Rev Gen Arpt Third Lien Ser A(16) 5.25% 1/1/2026 AAA 4,000 4,263,400
Houston TX Arpt Sys Rev Sub
Lien Ser A AMT(11) 5.50% 7/1/2012 AAA 1,610 1,715,648
Muni Secs Trust Ctfs Ser 7006
Tr Ctf Cl B RIBs(2) 7.166% 1/1/2031 Aaa 6,250 6,921,500
NY New York City Indl Dev Agy
Terminal One Group Assn Pj AMT 5.50%# 1/1/2024 A3 4,750 4,994,530
PA St Tpk Commn Tpk Rev Ser A(2) 5.25% 12/1/2032 AAA 5,000 5,351,200
Port Kalama WA Rev Ser B AMT 5.625% 12/1/2015 A3 1,025 1,033,692
San Francisco CA City & Cnty
Arpt Lease SFO Fuel Ser A AMT(12) 6.125% 1/1/2027 AAA 495 517,433
---------------
TOTAL 29,069,839
---------------
WATER/SEWER 7.99%
CA St Dept Wtr Res Wtr Rev
Central Vly Pj Ser AD(12) 5.00% 12/1/2026 AAA 5,000 5,235,300
Chisholm Creek Util Auth KS
Bel Aire & Park City KS Pj(16) 5.25% 9/1/2021 Aaa 1,025 1,087,812
CO Wtr Res & Pwr Dev Parker
Wtr & Sntn Dist(16) 5.125% 9/1/2034 AAA 3,350 3,511,771
Gainesville GA Wtr & Sew Rev(12) 5.375% 11/15/2020 AAA 2,900 3,107,553
Gautier MI Util Dist Util Sys
Rev Ref(11) 5.125% 3/1/2019 Aaa 425 446,038
Grand Forks ND Wtr Rev Ser D(16) 5.375% 9/1/2020 Aaa 1,150 1,213,721
Iowa City IA Swr Rev(12) 5.375% 7/1/2020 Aaa 620 649,456
KS St Dev Fin Auth Rev Pub
Wtr Supply Revolving Ln 2 4.75% 4/1/2018 Aa1 1,180 1,194,502
Midlothian TX Wtr Dist(12) Zero Coupon 9/1/2022 AAA 2,000 908,260
NY New York City Muni Wtr Fin 5.125% 6/15/2031 AA+ 5,000 5,189,900
OR St Bd Bk Rev OR Econ Cmnty
Dev Dept Ser A(16) 5.50% 1/1/2017 AAA 570 597,685
Raleigh NC Comb Entrprse 5.00% 3/1/2031 AAA 11,980 12,438,834
Rockingham NC COP(2) 5.00% 4/1/2020 AAA 1,205 1,267,323
SD Conservancy Dist(2) 5.00% 8/1/2022 Aaa 2,700 2,799,306
SD Conservancy Dist Rev Clean
Wtr St Revolving Fd(2) 5.00% 8/1/2022 Aaa 500 516,220
UT Wtr Fin Agy Rev Pooled Ln Fin Pg(2) 5.125% 7/1/2023 Aaa 1,000 1,046,890
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
NATIONAL TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
WV St Wtr Dev Auth Rev Loan 6.25% 7/1/2030 AAA $ 1,470 $ 1,607,695
Pg III Ser A AMT(2)
WV Wtr Dev Auth Infra Rev Ser A(2) 5.50% 10/1/2023 AAA 900 987,183
WV Wtr Dev Auth Infra Rev Ser A(12) 5.625% 10/1/2026 AAA 1,555 1,656,573
---------------
TOTAL 45,462,022
---------------
TOTAL MUNICIPAL BONDS (cost $541,654,236) 568,753,052
===============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENTS 0.00%
MONEY MARKET MUTUAL FUNDS 0.00%
Dreyfus Municipal Cash Management Plus 7 6,858
SSgA Tax Free Money Market Fund 6 5,615
---------------
TOTAL SHORT-TERM INVESTMENTS (cost $12,473) 12,473
===============
TOTAL INVESTMENTS IN SECURITIES 99.99% (cost $541,666,709) 568,765,525
===============
OTHER ASSETS IN EXCESS OF LIABILITIES 0.01% 35,542
---------------
NET ASSETS 100.00% $ 568,801,067
===============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
----------
MUNICIPAL BONDS 100.20%
EDUCATION 15.46%
Abag Fin Auth For Nonprofit
Corp CA Rev Sch of Mech Arts 5.25% 10/1/2026 A3 $ 500 517,120
Anaheim CA City Sch Dist(11) 5.00% 8/1/2023 AAA 1,000 1,052,450
CA Edl Facs Auth Rev Res Ctfs
Ser 113 RIBs 6.915% 12/1/2027 AAA 2,525 2,689,529
CA Edl Facs Auth Rev Scripps College 5.25% 8/1/2021 A1 425 441,949
CA Edl Facs Auth Rev Scripps College 5.25% 8/1/2026 A1 1,145 1,189,563
CA Edl Facs Auth Rev Univ of San Diego(2) 5.00% 10/1/2028 Aaa 1,250 1,288,837
CA Edl Facs Auth Rev
Unrefunded Univ San Francisco(16) 6.00% 10/1/2016 AAA 45 46,448
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
CA Edl Facs Auth Rev 6.00% 10/1/2026 AAA $ 1,575 $ 1,625,668
Unrefunded Univ San Francisco(16)
Golden Vly Unif Sch Dist Fin Pj(2) 5.35% 7/1/2027 AAA 2,250 2,329,425
Los Angeles CA Unif Sch Dist
Admin Bldg Pj Ser COP(2) 5.00% 10/1/2031 AAA 3,025 3,099,294
Los Angeles CA Unif Sch Dist Ser A(12) 5.00% 7/1/2022 AAA 1,500 1,570,515
Los Angeles CA Unif Sch Dist Ser A(16) 5.00% 1/1/2028 AAA 1,395 1,450,702
San Rafael CA City Elem Sch(11) 4.50% 2/1/2030 AAA 520 510,276
San Ysidro CA Sch Dist Cap
Apprec Election 1997 Ser D(11) Zero Coupon 8/1/2028 AAA 1,000 346,110
Univ CA Rev Multi Purp Ser K 5.25% 9/1/2024 AA 1,545 1,607,202
Univ CA Rev Res Facs Ser E(2) 5.00% 9/1/2031 AAA 2,000 2,068,200
Univ CA Rev Res Ltd Pj Ser B(12) 5.00% 5/15/2033 AAA 2,000 2,072,740
Univ CA Rev Res Multi Purp Pj Ser Q(12) 5.00% 9/1/2031 AAA 2,000 2,069,000
Univ Enterprises Inc CA
Ref Auxiliary Organization A(11) 5.00% 10/1/2035 AAA 1,500 1,555,050
---------------
TOTAL 27,530,078
---------------
GENERAL OBLIGATION 18.56%
Antelope Vly CA Unif High Sch(16) 5.00% 8/1/2022 AAA 2,080 2,179,819
Barstow CA Unif Sch Dist Ser A(11) 5.00% 8/1/2026 Aaa 2,500 2,600,050
Berryessa CA Unif Sch Dist
Election of 1999 Ser B(12) 5.25% 8/1/2019 AAA 1,015 1,090,009
CA St 5.10% 2/1/2034 A 3,900 3,954,912
CA St(11) 5.25% 9/1/2030 AAA 890 931,928
CA St Previous Veterans Ser BJ AMT 5.70% 12/1/2032 AA- 640 648,730
CA St Var Purp 5.25% 11/1/2027 A 520 548,184
Capistrano CA Unif Sch Dist
Fac Impt Dist No 001 Ser A(11) 6.00% 8/1/2024 AAA 2,500 2,738,425
Escondido CA Unif Sch Dist Ser A(12) 5.25% 8/1/2022 AAA 2,000 2,134,860
Mojave CA Unif Sch Dist Sch
Facs Impt Dist No 001(11) 5.00% 8/1/2024 AAA 1,060 1,104,806
Mojave CA Unif Sch Dist Sch
Facs Impt Dist No 001(11) 5.25% 8/1/2022 AAA 1,230 1,316,481
Montebello CA Unif Sch Dist(12) 5.00% 8/1/2020 AAA 350 367,965
Mount Pleasant CA Elem Sch
Dist 1998 Election Ser C(12) 5.50% 3/1/2026 AAA 465 504,576
Oak Grove CA Sch Dist Ref(16) 5.00% 8/1/2024 AAA 3,140 3,294,865
Oak Valy CA Hosp Dist Election 2004(11) 5.00% 7/1/2033 Aaa 500 516,020
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Oxnard CA Unif High Sch Dist Ser A(16) 6.00% 2/1/2020 AAA $ 650 $ 755,644
Oxnard CA Unif High Sch Dist Ser A(16) 6.20% 8/1/2030 AAA 3,000 3,493,110
Pittsburg CA Redev Agy Los
Medanos Cmnty Dev Pj(2) Zero Coupon 8/1/2026 AAA 3,500 1,345,505
Pomona CA Unif Sch Dist(16) 6.15% 8/1/2030 AAA 1,000 1,205,110
Pomona CA Unif Sch Dist Ser A(16) 6.55% 8/1/2029 AAA 1,000 1,273,730
Puerto Rico Comwlth Impt Ser A 5.375% 7/1/2028 BBB 995 1,031,865
Riverside CA Cmnty College
Dist Unrefunded Bal Ser A(16) 5.50% 8/1/2029 AAA 15 16,390
---------------
TOTAL 33,052,984
---------------
HEALTHCARE 4.32%
CA Hlth Facs Fin Auth
Rev Ref Cedars Sinai Med Ctr 5.00% 11/15/2034 A3 1,000 1,012,900
CA Infrastr & Econ Dev Bk Rev
Kaiser Hosp Ser A 5.50% 8/1/2031 A+ 1,300 1,364,532
CA Infrastr & Econ Dev Bk Rev
Kaiser Hosp Ser B 5.55% 8/1/2031 A+ 650 684,262
CA Infrastr & Econ Scripps
Res Instl Ser A 5.75% 7/1/2030 Aa3 1,500 1,583,190
CA Statewide Cmntys Dev Auth
Rev Daughters of Charity Hlth A 5.00% 7/1/2039 BBB+ 2,000 1,979,040
Torrance CA Hosp Rev Torrance
Memorial Med Ctr Ser A 5.50% 6/1/2031 A+ 500 518,970
Torrance CA Hosp Rev Torrance
Memorial Med Ctr Ser A 6.00% 6/1/2022 A+ 500 551,445
---------------
TOTAL 7,694,339
---------------
HOUSING 0.57%
CA Statewide Cmntys Dev Auth
Ref CHF-Irvine LLC-UCI East(c) 5.00% 5/15/2038 Baa3 1,000 1,014,120
---------------
INDUSTRIAL 1.73%
Golden St Tob Sec Corp CA Tob
Settlmnt Rev Asset Bkd Ser A(11) 5.00% 6/1/2035 AAA 2,000 2,060,620
Tob Sec Auth Lease North CA Tob
Settlmnt Rev Asset Bkd Bds Ser A 1 5.375% 6/1/2038 BBB 1,000 1,014,000
---------------
TOTAL 3,074,620
---------------
LEASE 9.58%
CA St Pub Wk Bd Lease Rev
Dept Gen Svcs Teale Data(2) 5.25% 3/1/2020 AAA 1,000 1,059,740
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Inglewood CA Pub Fin Auth Rev Ser A(2) 5.25% 8/1/2021 AAA $ 600 $ 635,340
Orange Cnty CA Recovery Partn
Residual Ser 128 COP RIBs(16) 8.265% 7/1/2019 Aaa 2,500 2,629,150
Palm Springs CA Fin Auth
Convention Ctr Pj Ser A(16) 5.50% 11/1/2035 AAA 1,000 1,097,620
Plumas Cnty CA Cap Impt Pg
Ser A COP(2) 5.25% 6/1/2023 AAA 1,365 1,461,082
Sacramento CA City Fin Auth
Rev Cap Impt Ser A(2) 5.00% 12/1/2026 AAA 900 957,897
San Buenaventura CA Ser C COP(2) 5.25% 2/1/2031 AAA 2,575 2,702,488
San Francisco CA City & Cnty
San Bruno Jail No 3(2) 5.25% 10/1/2033 AAA 5,000 5,234,800
Santa Ana CA Unif Sch Dist
Fin Pj COP(12) Zero Coupon 4/1/2019 AAA 2,295 1,279,371
---------------
TOTAL 17,057,488
---------------
MISCELLANEOUS 2.30%
CA Infrastr & Econ Bk Rev
YMCA Metropolitan LA Pj(2) 5.25% 2/1/2026 AAA 2,000 2,120,920
Fontana CA Pub Fin Auth Tax
North Fontana Redev Pj Ser A(2) 5.50% 9/1/2032 AAA 1,000 1,067,230
Oakland CA JT Pwrs Fin Auth
Reassmt Rev 5.50% 9/2/2024 A- 405 427,235
Puerto Rico Convention Ctr Dist
Auth Hotel Occupancy Tax Rev Ser A(5) 4.50% 7/1/2036 AAA 500 487,855
---------------
TOTAL 4,103,240
---------------
POWER 2.06%
Los Angeles CA Wtr & Pwr Rev
Pwr Sys Ser A(15)(16) 5.00% 7/1/2024 AAA 850 872,670
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN(16) 5.00% 7/1/2032 AAA 1,500 1,555,170
Puerto Rico Elec Pwr Auth Ref
Rev Ser II(12) 5.125% 7/1/2026 AAA 500 528,580
Shasta CA JT Pwrs Fin Auth
Cnty Admin Bldg Pj Ser A(16) 5.25% 4/1/2023 AAA 675 714,602
---------------
TOTAL 3,671,022
---------------
PRE-REFUNDED 15.92%
Anaheim CA Unif High Sch Dist Ser A(12) 5.00% 8/1/2025 AAA 785 839,738
CA Edl Facs Auth Rev
Pepperdine Univ 5.75% 9/15/2030 A1 2,000 2,121,900
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
40
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
CA Edl Facs Auth Rev Pooled 6.50% 6/1/2020 Baa3 $ 3,000 $ 3,310,980
College/Univ Ser C ETM
CA Edl Facs Auth Rev
Univ San Francisco(16) 6.00% 10/1/2016 AAA 30 30,972
CA Edl Facs Auth Rev
Univ San Francisco(16) 6.00% 10/1/2026 AAA 990 1,022,086
CA Infrastr & Econ Dev Bk Rev
Asian Museum Fndtn(16) 5.25% 6/1/2030 AAA 115 118,425
CA St Univ Fndtn Rev
Monterey Bay(16) 5.30% 6/1/2022 AAA 250 269,580
CA St Univ Fndtn Rev
Sacramento Auxiliary Ser A(16) 5.50% 10/1/2027 AAA 400 439,984
CA Statewide Cmntys Dev Auth
Auxiliary Fndtn CA St Univ COP(16) 5.20% 6/1/2024 AAA 525 550,993
Centinela Vly CA Unif High
Sch Election 2000 Ser D ETM(11) 5.25% 8/1/2024 AAA 1,145 1,220,043
El Monte CA City Sch Dist Ser A(12) 6.25% 5/1/2025 AAA 1,230 1,364,513
Franklin-McKinley CA Sch Dist Ser B(12) 5.00% 8/1/2027 AAA 675 724,977
Fremont CA Unif High Sch Dist
Santa Clara Cnty Ser B(11) 5.25% 9/1/2025 AAA 1,000 1,066,210
Los Angeles CA Unif Sch Dist
Dist Ser D(11) 5.375% 7/1/2025 AAA 1,000 1,068,740
MSR Pub Pwr Agy CA San Juan
Pj Rev Ser D ETM(16) 6.75% 7/1/2020 AAA 915 1,075,052
Orange Cnty CA Recovery Partn Ser A(16) 6.00% 7/1/2026 AAA 750 769,590
Pittsburg CA Unif Sch Dist Ser E(12) 6.00% 8/1/2024 AAA 1,380 1,469,921
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser D 5.75% 7/1/2041 AAA 400 442,936
Puerto Rico Comwlth Bal Pub Impt Ser A 5.375% 7/1/2028 AAA 505 545,667
Puerto Rico Pub Fin Corp Approp E 5.50% 8/1/2029 Aaa 750 815,580
Riverside CA Cmnty College Ser A(16) 5.50% 8/1/2029 AAA 1,340 1,493,055
Sacramento CA City Fin Auth
Rev Cap Impt Ser A(2) 5.00% 12/1/2020 AAA 2,000 2,128,660
Santa Cruz CA City Elem Sch
Dist Ser B(11) 6.00% 8/1/2029 AAA 2,500 2,734,700
Santa Cruz CA City High Sch Ser B(11) 6.00% 8/1/2029 AAA 1,000 1,093,880
Southwestern Cmnty College Dist CA(2) 5.375% 8/1/2025 AAA 1,500 1,634,910
---------------
TOTAL 28,353,092
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
RESOURCE RECOVERY 2.34%
CA Pollutn Ctrl Fin Auth Rev
Pacific Gas/Elec Ser A AMT(16) 5.35% 12/1/2016 AAA $ 2,000 $ 2,131,320
CA Pollutn Ctrl Fin Auth Solid Wst
Disp Rev Wst Mgmt Inc Pj Ser B AMT 5.00% 7/1/2027 BBB 1,000 1,004,700
CA Pollutn Ctrl Fin Auth Solid Wst
Mgmt Inc Pj Ser A2 AMT 5.40% 4/1/2025 BBB 1,000 1,041,520
---------------
TOTAL 4,177,540
---------------
SPECIAL TAX 9.82%
CSUCI Fin Auth Rev CA East
Campus Cmnty Ser A(16) 5.25% 9/1/2026 AAA 5,500 5,754,815
Culver City CA Redev Agy Ref
Tax Alloc Redev Pj A(2) 4.25% 11/1/2020 AAA 110 108,585
Culver City CA Redev Agy Ref
Tax Alloc Redev Pj A(2) 4.25% 11/1/2021 AAA 290 285,125
Irvine CA Uni Sch Fing Auth
Spl Tax Ser A(2) 5.00% 9/1/2030 AAA 1,500 1,547,640
Lafayette CA Redev Agy Tax Alloc
Redev Pj(17) 5.00% 8/1/2035 AA 1,000 1,013,320
Riverside Cnty CA Redev Agy
Tax Alloc Jupura Vly Pj(2) 5.25% 10/1/2035 AAA 2,000 2,104,840
RNR Sch Fin Auth CA Spl Tax
Cmnty Fac Dist No 92-1 Ser A(2) 5.625% 9/1/2030 AAA 3,985 4,310,973
South Orange Cnty CA Pub Fing Auth
Spl Tax Rev Ladera Ranch Ser A(2) 4.625% 8/15/2026 AAA 310 308,568
South Orange Cnty CA Pub Fing Auth
Spl Tax Rev Ladera Ranch Ser A(2) 5.00% 8/15/2032 AAA 2,000 2,051,000
---------------
TOTAL 17,484,866
---------------
TRANSPORTATION 7.50%
Bay Area Govt Assn CA Rev
Bart SFO Extn Arpt Premium A(2) 5.00% 8/1/2026 AAA 2,000 2,063,260
Fresno CA Arpt Rev Ser A(12) 5.50% 7/1/2030 AAA 1,500 1,593,480
Port Oakland CA Port Rev Ser J(16) 5.50% 11/1/2026 AAA 5,000 5,244,650
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.00% 7/1/2036 BBB+ 210 211,491
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser G(11) 5.25% 7/1/2021 AAA 1,000 1,075,880
San Francisco CA City & Cnty
Arpt Lease SFO Fuel Ser A AMT(12) 6.125% 1/1/2027 AAA 490 512,207
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
42
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
CALIFORNIA TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
San Francisco CA City & Cnty 5.75% 1/1/2014 AAA $ 500 $ 528,030
Commn Intl Arpt Rev AMT(12)
San Francisco CA City & Cnty
Ref Second Ser 28B(16) 5.25% 5/1/2023 AAA 2,000 2,121,360
---------------
TOTAL 13,350,358
---------------
WATER/SEWER 10.04%
CA St Dept Wtr Res Wtr Rev
Central Vly Pj Ser AD(12) 5.00% 12/1/2026 AAA 2,135 2,235,473
CA Statewide Cmntys Dev Auth
Wtr Rev Pooled Fin Pg Ser C(12) 5.25% 10/1/2034 AAA 500 529,480
El Monte CA Wtr Auth Rev(2) 5.60% 9/1/2029 AAA 2,000 2,157,380
Imperial CA Ref Wtr Fac COP(11) 5.00% 10/15/2020 AAA 3,250 3,401,320
Orange Cnty CA Santn Dist COP(11) 5.25% 2/1/2027 AAA 4,265 4,533,482
Oxnard CA Fin Auth Wstwtr
Redwood Trunk Swr & Headwk A(11) 5.25% 6/1/2034 AAA 2,000 2,112,520
San Luis Opispo Cnty CA Ser A(16) 5.375% 8/1/2030 AAA 1,800 1,891,404
Western Riverside Cnty CA
Wtr & Wstwtr Fin Auth Eastern
Muni Wtr Dist Impt A 5.00% 9/1/2030 A- 1,000 1,020,260
---------------
TOTAL 17,881,319
---------------
TOTAL MUNICIPAL BONDS (cost $171,082,934) 178,445,066
===============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENT 0.28%
MONEY MARKET MUTUAL FUND 0.28%
Dreyfus General CA Municipal Money
Market Fund Class A (cost $500,675) 501 500,675
---------------
TOTAL INVESTMENTS IN SECURITIES 100.48% (cost $171,583,609) 178,945,741
===============
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS (0.48%) (859,008)
---------------
NET ASSETS 100.00% $ 178,086,733
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 98.56%
EDUCATION 16.37%
CT St Hlth & Edl Facs Auth
Rev CT College Ser E(16) 5.25% 7/1/2022 AAA $ 400 $ 428,404
CT St Hlth & Edl Facs Auth
Rev CT St Univ Sys Ser E(11) 5.00% 11/1/2033 AAA 750 774,120
CT St Hlth & Edl Facs Auth
Rev Gunnery Sch(17) 5.35% 7/1/2031 AA 695 729,854
CT St Hlth & Edl Facs Auth
Rev Loomis Chaffee Sch(2) 4.00% 7/1/2022 Aaa 420 403,935
CT St Hlth & Edl Facs Auth
Rev Miss Porters Sch Ser A 5.75% 7/1/2029 A+ 3,200 3,415,744
CT St Hlth & Edl Facs Auth
Rev Norwich Free Academy Ser A(2) 5.00% 7/1/2034 AAA 1,250 1,296,025
CT St Hlth & Edl Facs Auth
Rev Suffield Academy Ser A(16) 5.40% 7/1/2027 AAA 1,350 1,407,294
CT St Hlth & Edl Facs Auth
Rev Trinity College Ser G(2) 5.00% 7/1/2021 AAA 1,000 1,043,810
CT St Hlth & Edl Facs Auth
Rev Univ CT Fndtn Ser A 5.25% 7/1/2019 Aa3 200 209,556
CT St Hlth & Edl Facs Auth
Rev Univ CT Fndtn Ser A 5.375% 7/1/2029 Aa3 210 218,612
CT St Hlth & Edl Facs Auth
Rev Univ Hartford Ser E(17) 5.25% 7/1/2032 AA 2,900 3,032,501
CT St Hlth & Edl Facs Auth
Rev Unrefunded Bal Sacrd Hrt Ser C 6.50% 7/1/2016 BBB- 275 281,639
Univ CT Ser A(11) 5.00% 2/15/2022 AAA 1,000 1,056,550
Univ CT Ser A(16) 5.125% 2/15/2021 AAA 675 714,325
---------------
TOTAL 15,012,369
---------------
GENERAL OBLIGATION 17.61%
Bridgeport CT Ser C(11) 4.75% 8/15/2021 AAA 1,000 1,017,460
Bridgeport CT Ser C(11) 5.00% 8/15/2020 AAA 500 517,540
CT St Ser D(16) 5.00% 12/1/2024 AAA 1,000 1,053,050
Hartford Cnty CT Met Dist(2) 5.00% 5/1/2024 AAA 500 523,760
Montville CT 6.70% 6/15/2009 Aa3 550 599,247
Montville CT 6.70% 6/15/2010 Aa3 575 640,464
New Haven CT Unrefunded Bal Ser A(2) 5.00% 11/1/2021 AAA 970 1,017,540
New Haven CT Unrefunded Bal Ser B(11) 5.00% 11/1/2019 AAA 560 592,133
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
44
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
New Haven CT Unrefunded
Bal Ser C(16) 5.00% 11/1/2021 AAA $ 1,660 $ 1,746,419
Puerto Rico Comwlth Pub Impt Zero Coupon 7/1/2018 BBB 2,035 1,170,552
Puerto Rico Comwlth Pub Impt Ser A 5.25% 7/1/2023 BBB 2,300 2,396,738
Puerto Rico Comwlth Unrefunded
Bal Pub Impt(12) 5.125% 7/1/2030 AAA 945 985,210
Redding CT 6.60% 4/15/2010 Aa1 100 111,035
Waterbury CT(12) 5.125% 4/1/2022 AAA 2,250 2,364,053
Waterbury CT Ser A(12) 5.00% 4/1/2019 AAA 1,250 1,306,500
West Haven CT(16) 6.50% 6/15/2006 AAA 100 100,578
---------------
TOTAL 16,142,279
---------------
HEALTHCARE 11.37%
CT St Dev Auth Rev
Duncaster Inc Pj(17) 5.125% 8/1/2022 AA 235 244,893
CT St Health & Edl Eastern CT
Health Network C(17) 5.125% 7/1/2030 AA 500 513,100
CT St Hlth & Edl Facs Auth
Rev Bridgeport Hosp Ser A(16) 6.625% 7/1/2018 AAA 1,250 1,259,987
CT St Hlth & Edl Facs Auth
Rev Bristol Hosp Ser B(17) 5.50% 7/1/2021 AA 1,000 1,079,490
CT St Hlth & Edl Facs Auth
Rev Catholic Hlth East Ser F(16) 5.625% 11/15/2020 AAA 325 346,525
CT St Hlth & Edl Facs Auth
Rev Child Care Fac Pg Ser C(2) 5.625% 7/1/2029 AAA 1,000 1,068,010
CT St Hlth & Edl Facs Auth
Rev CT College Ser E(16) 5.00% 7/1/2032 AAA 1,050 1,090,604
CT St Hlth & Edl Facs Auth
Rev Griffin Hosp Ser B(17) 5.00% 7/1/2023 Aa3 500 516,400
CT St Hlth & Edl Facs Auth
Rev Kent Sch Ser D(16) 4.375% 7/1/2023 Aaa 500 494,305
CT St Hlth & Edl Facs Auth
Rev St Francis Hosp & Med(17) 5.00% 7/1/2022 AA 1,000 1,034,280
CT St Hlth & Edl Facs Auth
Rev Trinity College Ser H(16) 4.75% 7/1/2023 AAA 1,030 1,056,770
CT St Hlth & Edl Facs Auth
Rev Waterbury Hosp Issue Ser C(17) 5.75% 7/1/2029 AA 650 683,020
CT St Hlth & Edl Facs Auth
Rev William W Backus Hosp Ser G(12) 5.00% 7/1/2035 AAA 1,000 1,036,620
---------------
TOTAL 10,424,004
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSING 4.37%
CT St Hsg Fin Auth Mtg
Fin Sub Ser D-2 AMT 4.85% 11/15/2036 AAA $ 1,500 $ 1,499,925
CT St Hsg Fin Auth Hsg Mtg
Fin Pg Sub Ser A-1 AMT 4.875% 11/15/2036 AAA 2,000 1,976,680
CT St Hsg Fin Auth Spl Oblig
Grp Home Mtg(2) 5.85% 6/15/2030 AAA 500 526,570
---------------
TOTAL 4,003,175
---------------
INDUSTRIAL 1.25%
Childrens Tr Fd Puerto Rico Tob
Settlmnt Rev Asset Bkd Bds 5.50% 5/15/2039 BBB 625 642,569
CT St Dev Auth Govt Lease Rev(16) 6.60% 6/15/2014 AAA 500 503,225
---------------
TOTAL 1,145,794
---------------
MISCELLANEOUS 1.13%
Puerto Rico Pub Bldgs Auth
Rev Unrefunded Bal Govt Facs Ser D 5.25% 7/1/2036 BBB 1,000 1,035,930
---------------
POWER 7.36%
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN(16) 5.00% 7/1/2032 AAA 1,500 1,555,170
Puerto Rico Elec Pwr Auth Ref
Rev Ser II(12) 5.125% 7/1/2026 AAA 2,925 3,092,193
Puerto Rico Elec Pwr Auth Ref
Rev Ser II 5.25% 7/1/2031 A3 1,000 1,040,190
Puerto Rico Elec Pwr Auth Ref
Ser HH(12) 5.25% 7/1/2029 AAA 1,000 1,065,150
---------------
TOTAL 6,752,703
---------------
PRE-REFUNDED 27.61%
CT St Hlth & Edl Facs Auth
Rev Fairfield Univ Ser I(16) 5.25% 7/1/2019 AAA 600 634,380
CT St Hlth & Edl Facs Auth
Rev Fairfield Univ Ser I(16) 5.50% 7/1/2029 AAA 1,235 1,315,114
CT St Hlth & Edl Facs Auth
Rev Loomis Chaffee Sch Ser D 5.25% 7/1/2031 A2 2,750 2,964,307
CT St Hlth & Edl Facs Auth
Rev Sacred Heart Ser C 6.50% 7/1/2016 BBB- 725 744,430
CT St Hlth & Edl Facs Auth
Rev Trinity College Ser E(16) 5.875% 7/1/2026 AAA 1,090 1,118,013
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
CT St Hlth & Edl Facs Auth
Rev Univ New Haven Issue D(1)(4) 6.70% 7/1/2026 AAA(a) $ 1,000 $ 1,027,520
CT St Ser A 5.625% 4/15/2020 Aa3 1,000 1,079,260
CT St Ser A 6.00% 4/15/2015 AA 1,000 1,093,160
CT St Ser B 5.60% 6/15/2020 Aa3 250 267,683
CT St Ser D 5.125% 11/15/2018 Aa3 1,500 1,597,965
Muni Secs Trust Ctfs Ser 7005
Cl B ETM RIBs+ 7.144% 10/1/2040 Aaa 1,000 1,142,300
New Haven CT Ser A ETM(2) 5.00% 11/1/2021 AAA 30 31,365
New Haven CT Ser C ETM(16) 5.00% 11/1/2021 AAA 10 10,907
Puerto Rico Comwlth Bal Pub Impt(12) 5.125% 7/1/2030 AAA 1,505 1,608,424
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser D 5.25% 7/1/2038 AAA 1,000 1,079,810
Puerto Rico Comwlth 6.00% 7/1/2026 AAA 1,000 1,043,730
Puerto Rico Comwlth
Pub Impt Ser A 5.00% 7/1/2027 AAA 670 714,247
Puerto Rico Comwlth
Pub Impt Ser A(11) 5.00% 7/1/2032 AAA 4,285 4,567,981
Puerto Rico Pub Fin Corp Approp E 5.50% 8/1/2029 Aaa 750 815,580
Stamford CT Parking Garage 5.25% 2/1/2023 AAA 155 168,328
Univ CT Rev Student Fee Ser A(11) 5.75% 11/15/2020 AAA 205 224,297
Univ CT Rev Student Fee Ser A 6.00% 11/15/2021 AA- 390 430,806
Univ CT Rev Student Fee Ser A(11) 6.00% 11/15/2025 AAA 500 552,315
Univ CT Ser A(11) 5.625% 3/1/2020 AAA 1,000 1,079,170
---------------
TOTAL 25,311,092
---------------
RESOURCE RECOVERY 1.13%
Stamford CT Wtr Pollutn Ctl
Sys & Fac Rev Ser A 5.00% 11/15/2032 AA+ 1,000 1,036,440
---------------
TRANSPORTATION 5.43%
CT St Spl Tax Oblig Rev
PA 1039 R-A RIBs RITES(12) 6.78% 1/1/2010 AAA 500 583,800
CT St Spl Tax Oblig Rev
PA 1039 R-B RIBs RITES(12) 6.78% 1/1/2010 AAA $ 785 $ 910,239
CT St Spl Tax Oblig Rev
PA 1039 R-C RIBs RITES(12) 6.03% 7/1/2017 AAA 2,250 2,450,520
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser D(12) 5.00% 7/1/2032 AAA 1,000 1,032,910
---------------
TOTAL 4,977,469
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
CONNECTICUT TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
WATER/SEWER 4.93%
CT St Dev Auth Wtr
Bridgeport AMT(2)(18) 6.15% 4/1/2035 AAA $ 500 $ 520,085
South Central CT Regl Wtr
Auth Wtr Sys Rev 18th Ser A(16) 5.00% 8/1/2025 AAA 300 313,245
South Central CT Regl Wtr
Auth Wtr Sys Rev 20th Ser(16) 5.00% 8/1/2035 AAA 1,500 1,557,660
South Central CT Regl Wtr
Auth Sys Rev 16th Ser(2) 5.375% 8/1/2025 AAA 1,000 1,064,910
South Central CT Regl Wtr
Auth Sys Rev 16th Ser(2) 5.375% 8/1/2030 AAA 1,000 1,065,730
---------------
TOTAL 4,521,630
---------------
TOTAL MUNICIPAL BONDS (cost $86,241,926) 90,362,885
===============
</Table>
<Table>
<Caption>
SHARES
(000)
----------
SHORT-TERM INVESTMENT 0.12%
MONEY MARKET MUTUAL FUND 0.12%
Dreyfus CT Municipal Cash Management (cost $110,125) 110 110,125
---------------
TOTAL INVESTMENTS IN SECURITIES 98.68% (cost $86,352,051) 90,473,010
===============
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES 1.32% 1,208,577
---------------
NET ASSETS 100.00% $ 91,681,587
===============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
HAWAII TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
----------
MUNICIPAL BONDS 98.53%
EDUCATION 9.93%
HI St Dept Bdgt & Fin Spl
Purp Rev Chaminade Univ Honolulu(17) 4.75% 1/1/2036 AA(b) $ 1,505 1,488,340
HI St Dept Bdgt & Fin Spl
Purp Rev Mid Pacific Institute(17) 4.625% 1/1/2036 AA 500 484,645
HI St Dept Bdgt & Fin Spl
Purp Rev Mid Pacific Institute(17) 5.00% 1/1/2026 AA 1,000 1,034,220
HI St Hsg Fin & Dev Corp Rev
Univ of HI Faculty Hsg Pj(2) 5.65% 10/1/2016 AAA 1,000 1,011,060
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
48
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HAWAII TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
HI St Hsg Fin & Dev Corp Rev
Univ of HI Faculty Hsg Pj(2) 5.70% 10/1/2025 AAA $ 380 $ 384,210
Univ HI Univ Sys Rev(11) 5.125% 7/15/2032 AAA 1,000 1,039,880
Univ HI Univ Sys Rev Ser A(11) 5.50% 7/15/2029 AAA 2,500 2,671,850
---------------
TOTAL 8,114,205
---------------
GENERAL OBLIGATION 28.78%
HI Cnty HI Ser A(12) 5.00% 7/15/2023 AAA 1,000 1,038,850
HI Cnty HI Ser A(16) 5.00% 7/15/2024 AAA 1,000 1,040,480
HI Cnty HI Ser A(16) 5.25% 7/15/2023 AAA 595 637,406
HI Cnty HI Ser A(11) 5.50% 7/15/2017 AAA 1,045 1,120,386
HI Cnty HI Ser A(11) 5.60% 5/1/2013 AAA 1,780 1,958,481
HI Cnty HI Ser A(12) 5.625% 5/15/2019 AAA 545 579,575
HI St Ser BZ 6.00% 10/1/2010 Aa2 500 545,865
HI St Ser BZ 6.00% 10/1/2012 Aa2 500 559,685
HI St Ser CA(11) 8.00% 1/1/2013 AAA 2,000 2,460,320
HI St Ser CZ(12) 5.25% 7/1/2018 AAA 1,000 1,061,550
HI St Ser DE(16) 5.00% 10/1/2024 AAA 1,000 1,041,400
HI St Ser DI(12) 5.00% 3/1/2025 AAA 1,000 1,046,900
HI St Unrefunded Bal Ser CP(11) 5.00% 10/1/2016 AAA 260 267,657
Honolulu HI City & Cnty Ser D(16) 5.00% 7/1/2023 AAA 2,000 2,094,800
Honolulu HI City & Cnty Ser F(11) 5.00% 7/1/2029 AAA 1,000 1,040,460
Kauai Cnty HI Ser A(11) 5.00% 8/1/2028 AAA(a) 1,000 1,041,530
Kauai Cnty HI Ser A(11) 5.00% 8/1/2029 AAA(a) 1,000 1,040,760
Kauai Cnty HI Ser A(16) 5.50% 8/1/2021 AAA 1,630 1,738,020
Maui Cnty HI(16) 5.00% 3/1/2025 AAA 1,000 1,043,020
Maui Cnty HI Ser A(16) 5.00% 3/1/2022 AAA 750 775,117
Puerto Rico Comwlth Unrefunded
Bal Pub Impt Ser A 5.375% 7/1/2028 BBB 1,330 1,379,276
---------------
TOTAL 23,511,538
---------------
HEALTHCARE 0.19%
Puerto Rico Indl Tourist Edl
Mutuo Oblig Grp Ser A(16) 6.25% 7/1/2024 AAA 150 151,731
---------------
HOUSING 2.32%
HI St Hsg Fin & Dev Corp Sing
Fam Mtg Purp Rev Ser B(10) 5.30% 7/1/2028 AAA 850 872,942
HI St Hsg Fin & Dev Corp Sing
Fam Mtg Purp Rev Ser B(10) 5.45% 7/1/2017 AAA 1,000 1,023,930
---------------
TOTAL 1,896,872
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HAWAII TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL 0.69%
Childrens Tr Fd Puerto Rico Tob
Settlmnt Rev Asset-Bkd Bds 5.50% 5/15/2039 BBB $ 550 $ 565,460
---------------
MISCELLANEOUS 1.25%
HI St Cap Dist Kapolei St
Office Ser A COP(2) 5.00% 5/1/2018 AAA 475 493,259
HI St Cap Dist St Office COP(16) 5.50% 5/1/2020 AAA 500 527,910
---------------
TOTAL 1,021,169
---------------
POWER 2.95%
HI St Dept Bdgt & Fin Spl Purp Rev
Elec Co & Subsidiaries Ser A AMT(11) 4.80% 1/1/2025 AAA 1,000 998,700
Puerto Rico Elec Pwr Auth Ref
Rev Ser II(12) 5.125% 7/1/2026 AAA 1,330 1,406,023
---------------
TOTAL 2,404,723
---------------
PRE-REFUNDED 35.38%
HI St Dept Bdgt & Fin Spl
Purp Rev Kaiser Permanente
Ser A ETM 5.15% 3/1/2015 AAA 1,250 1,301,200
HI St Dept Bdgt & Fin Spl
Purp Rev Kapiolani Hlth 6.20% 7/1/2016 BBB+ 1,000 1,026,220
HI St Dept Bdgt & Fin Spl
Purp Rev Kapiolani Hlth 6.25% 7/1/2021 BBB+ 2,000 2,052,680
HI St Dept Bdgt & Fin Spl
Purp Rev The Queens Hlth Sys Ser B(16) 5.25% 7/1/2023 AAA 1,000 1,045,020
HI St Hwy Rev(12) 5.50% 7/1/2020 AAA 1,100 1,176,505
HI St Ser CP(11) 5.00% 10/1/2016 AAA 640 659,411
HI St Ser CT(12) 5.875% 9/1/2019 AAA 1,175 1,268,354
HI St Ser CU(16) 5.25% 10/1/2020 AAA 1,700 1,807,338
Honolulu HI City & Cnty Bd
Wtr Supply Wtr Sys Rev 5.80% 7/1/2021 AA 1,000 1,015,610
Honolulu HI City & Cnty Ser A(16) 5.00% 11/1/2015 AAA 405 413,894
Honolulu HI City & Cnty Ser A(12) 5.125% 9/1/2021 AAA 600 639,402
Honolulu HI City & Cnty Ser A(11) 5.50% 9/1/2016 AAA 555 579,464
Honolulu HI City & Cnty Ser A(11) 5.50% 9/1/2016 AAA 440 452,346
Honolulu HI City & Cnty Ser A(11) 5.50% 9/1/2016 AAA 5 5,140
Honolulu HI City & Cnty Ser B(11) 5.00% 11/1/2016 AAA 235 242,384
Honolulu HI City & Cnty Ser B(11) 5.00% 11/1/2016 AAA 265 273,326
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
50
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HAWAII TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Honolulu HI City & Cnty
Wtr ETM(11)(18) 6.00% 12/1/2015 AAA $ 1,000 $ 1,154,490
Kauai Cnty HI(11) 6.125% 8/1/2024 AAA 580 635,425
Kauai Cnty HI Pub Impt Ser B(16) 5.25% 8/1/2017 AAA 95 97,970
Kauai Cnty HI Ser A(16) 5.50% 8/1/2021 AAA 865 936,501
Maui Cnty HI Ser A(16) 5.75% 6/1/2016 AAA 1,035 1,049,035
Maui Cnty HI Ser A(11) 6.10% 3/1/2020 AAA 500 548,150
Muni Secs Trust Ctfs Ser 7005
Cl B ETM RIBs+ 7.144% 10/1/2040 Aaa 1,250 1,427,875
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser D 5.25% 7/1/2038 AAA 1,000 1,079,810
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser D 5.75% 7/1/2041 AAA 1,000 1,107,340
Puerto Rico Comwlth Infra Fin
Auth Spl Ser A 5.375% 10/1/2024 AAA 300 321,480
Puerto Rico Comwlth Infra Fin
Auth Spl Ser A 5.50% 10/1/2032 AAA 200 214,742
Puerto Rico Comwlth Pub Impt 6.00% 7/1/2026 AAA 1,000 1,043,730
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 AAA 500 533,020
Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 AAA 670 723,955
Puerto Rico Indl Med & Envr
Pollutn Ctrl St Luke Hosp Ser A 6.25% 6/1/2010 AAA(a) 950 954,009
Puerto Rico Pub Bldgs Auth
Rev Govt Facs Ser B(2) 5.00% 7/1/2027 AAA 1,000 1,031,730
Puerto Rico Pub Bldgs Auth
Rev Govt Facs Ser D GTD 5.25% 7/1/2036 A- 1,465 1,573,498
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.75% 8/1/2030 Aaa 500 508,810
---------------
TOTAL 28,899,864
---------------
TRANSPORTATION 9.30%
HI St Hwy Rev Ser A(12) 5.00% 7/1/2023 AAA 2,000 2,094,800
HI St Hwy Rev Ser A(12) 5.00% 7/1/2024 AAA 750 783,232
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y(15)(16) 5.50% 7/1/2036 AAA 250 276,365
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 BBB+ 3,000 3,210,690
Puerto Rico Comwlth Hwy &
Transn Auth Rev PA 1052 RIBs RITES 7.208% 1/1/2010 AAA(a) 1,000 1,214,680
Puerto Rico Comwlth Hwy &
Transn Auth Rev St Infrastr Bk 5.00% 7/1/2022 BBB 20 20,412
---------------
TOTAL 7,600,179
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
HAWAII TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
WATER/SEWER 7.74%
Honolulu HI City & Cnty Bd
Wtr Supply Wtr Sys Rev(12) 5.25% 7/1/2031 AAA $ 100 $ 105,318
Honolulu HI City & Cnty Bd
Wtr Supply Wtr Sys Rev Ser A(11) 5.00% 7/1/2033 AAA 1,000 1,036,820
Honolulu HI City & Cnty Waste Wtr
Sys Rev Ser A(11) 5.00% 7/1/2035 AAA 5,000 5,179,300
---------------
TOTAL 6,321,438
---------------
TOTAL INVESTMENTS IN MUNICIPAL BONDS 98.53% (cost $77,478,475) 80,487,179
===============
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES 1.47% 1,200,760
---------------
NET ASSETS 100.00% $ 81,687,939
===============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
MINNESOTA TAX-FREE FUND MARCH 31, 2006
<Table>
MUNICIPAL BONDS 96.91%
EDUCATION 15.35%
Bloomington MN Indpt Sch
Dist Ser A(12) 5.125% 2/1/2024 Aaa 1,000 1,046,750
MN St Higher Edl Facs Auth
Rev Augsburg Coll Ser 6-C 5.00% 5/1/2023 Baa2 250 254,310
MN St Higher Edl Facs Auth
Rev Hamline Univ Ser 5-B 6.00% 10/1/2029 Baa1 500 524,460
MN St Higher Edl Facs Auth
Rev St John Univ Ser 6-G 4.50% 10/1/2026 A2 650 637,202
MN St Higher Edl Facs Auth
Rev Univ St Thomas Ser 6-I 5.00% 4/1/2023 A2 250 260,170
Moorhead MN Edl Facs Rev
Concordia Coll Corp Pj A 5.00% 12/15/2022 A3 1,125 1,164,251
Pequot Lakes MN Indpt Sch
Dist No 186(11) 5.25% 2/1/2022 AAA 1,550 1,642,225
Prior Lake MN Indpt Sch Dist
No 719 Ser A(11) 5.25% 2/1/2023 Aaa 1,470 1,555,128
---------------
TOTAL 7,084,496
---------------
ELECTRIC POWER 2.21%
MN St Muni Pwr Agy Elec Rev 5.00% 10/1/2035 A3 1,000 1,019,680
---------------
GENERAL OBLIGATION 6.45%
Lake Superior MN Indpt Sch
Dist No 381 Ser A(12) 5.00% 4/1/2023 Aaa 500 522,775
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
52
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MINNESOTA TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Minneapolis MN Ser E 5.00% 3/1/2026 AAA $ 500 $ 511,365
North St Paul Maplewood MN
Indpt Sch Dist No 622 5.125% 2/1/2025 AAA 400 403,872
North St Paul Maplewood MN
Indpt Sch Dist No 622 Ser A 5.125% 2/1/2020 AAA 100 101,228
Princeton MN Indpt Sch Dist
No 477 Ref Sch Bldg Ser A(12) 5.00% 2/1/2024 Aaa 485 509,313
Puerto Rico Comwlth
Unrefunded Pub Impt(15)(16) 5.00% 7/1/2028 AAA 175 179,130
Ramsey Cnty MN St Aid Str Ser C 5.00% 2/1/2024 AAA 500 521,675
Todd Morrison Cass &
Wadena Cntys MN Utd Hosp
Dist Hlthcare Fac Lakewood 5.00% 12/1/2034 Baa2 225 227,349
---------------
TOTAL 2,976,707
---------------
HEALTHCARE 12.43%
Bemidji MN Hlthcare Fac North
Country Hlth Svcs(17) 5.00% 9/1/2024 AA 500 513,200
Breckenridge MN Rev Catholic
Hlth Initiatives A 5.00% 5/1/2030 AA 500 516,750
Duluth MN Econ Dev
Benedictine Hlth Sys St Marys 5.25% 2/15/2028 A- 1,000 1,025,820
Duluth MN Econ Dev
Benedictine Hlth Sys St Marys 5.25% 2/15/2033 A- 1,000 1,021,240
Hastings MN Hlthcare Fac Rev
Regina Med Ctr(1) 5.30% 9/15/2028 A 400 402,260
Minneapolis MN Hlthcare Sys Rev(16) 5.00% 5/15/2021 AAA 250 261,782
MN Agric & Econ Dev Bd Rev
Unrefunded Bal Hlthcare Sys A(16) 5.50% 11/15/2017 AAA 45 47,153
Rochester MN Hlthcare Fac Rev(15)(16) 5.50% 11/15/2027 AAA 500 521,475
St Paul MN Hsg & Redev Auth
Franciscan Hlth Pj(9)(13) 5.30% 11/20/2022 AAA 50 51,977
Stillwater MN Hlthcare Rev
Hlth Sys Oblig Grp 5.00% 6/1/2035 A- 1,000 1,005,780
Virginia MN Hsg & Redev Auth
Hlthcare Fac Lease Rev 5.375% 10/1/2030 Baa1 365 370,825
---------------
TOTAL 5,738,262
---------------
HOUSING 15.27%
Crow Wing Cnty MN Hsg
Ser A GTD(16) 4.90% 1/1/2034 Aaa 490 499,447
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MINNESOTA TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Dakota Cnty MN Hsg & Redev
Auth Sing Fam Mtg Rev AMT(14) 5.85% 10/1/2030 AAA $ 67 $ 68,351
Fairbault MN Hsg & Redev Auth
Govt Trails Edge Apts Ser A 5.25% 2/1/2028 A3 300 305,133
Minneapolis MN Multi Fam Hsg
Rev Mtg East Village South(9)(13) 6.10% 7/20/2020 Aaa 1,000 1,058,340
Minneapolis MN Multi Fam Rev
Hsg East Phillips AMT(13) 5.25% 8/20/2044 Aaa 300 302,352
MN St Hsg Fin Agy Res
Hsg Fin Ser B AMT 4.85% 7/1/2031 AA+ 1,865 1,864,869
MN St Hsg Fin Agy Res
Hsg Fin Ser F AMT 5.40% 7/1/2030 AA+ 1,115 1,129,607
MN St Hsg Fin Agy Sing Fam
Mtg Ser D AMT 5.85% 7/1/2019 AA+ 65 65,412
MN St Hsg Fin Agy Sing Fam
Mtg Ser E 5.90% 7/1/2025 AA+ 125 125,949
MN St Hsg Fin Agy Sing Fam
Mtg Ser G AMT 6.25% 7/1/2026 AA+ 30 30,512
Robbinsdale MN Hsg Dev Sr Hsg
Pj Ser B(11) 5.75% 1/1/2023 Aaa 250 257,245
Scott Cnty MN Hsg & Redev
Savage City Hamilton Apts Pj(2) 5.60% 2/1/2019 Aaa 80 82,062
St Paul MN Hsg & Redev Auth
Multi Fam Hsg Rev Selby AMT(9)(13) 5.50% 9/20/2044 Aaa 750 760,508
St Paul MN Port Auth Hsg
Burlington Apt(13) 5.35% 5/1/2031 AAA 500 500,120
---------------
TOTAL 7,049,907
---------------
INDUSTRIAL 0.67%
Childrens Tr Fd Puerto Rico
Tob Settlment Rev Asset-Bkd Bds 5.50% 5/15/2039 BBB 300 308,433
---------------
LEASE 3.08%
Olmsted Cnty MN Hsg & Redev 5.00% 2/1/2023 AAA 275 284,452
Rochester MN Indpt Sch Dist
No 535 COP(12) 5.125% 2/1/2020 AAA 85 88,923
St Paul MN Port Auth Lease
Rev Office Bldg 5.25% 12/1/2027 AA+ 1,000 1,048,520
---------------
TOTAL 1,421,895
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
54
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MINNESOTA TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS 4.07%
Bemidji MN Lease Rev MN St
Bureau Crim Appreh(16) 5.80% 12/1/2021 Aaa $ 460 $ 483,125
Douglas Cnty MN Hsg & Redev
Governmental Hsg Ser A(16) 5.50% 1/1/2032 Aaa 560 602,655
MN St Retirement Sys Bldg Rev 6.00% 6/1/2030 AAA 250 270,845
St Paul MN Rec Facs Gross Rev
Highland National Pj 5.00% 10/1/2025 AA 500 522,275
---------------
TOTAL 1,878,900
---------------
POWER 5.79%
Chaska MN Elec Rev Ref
Generating Facs Ser A 5.00% 10/1/2030 A3 500 512,145
Puerto Rico Elec Pwr Auth
Rev Ser DD(12) 4.50% 7/1/2019 AAA 95 96,349
Rochester MN Elec Util Rev(2)(18) 5.25% 12/1/2030 AAA 1,000 1,044,790
Western MN Muni Pwr Agy Ser A(16) 5.00% 1/1/2026 Aaa 400 416,204
Western MN Muni Pwr Agy Pj Ser A(2) 5.50% 1/1/2016 Aaa 565 603,482
---------------
TOTAL 2,672,970
---------------
PRE-REFUNDED 14.89%
Chaska MN Elec Rev Ser A 6.00% 10/1/2025 A3 250 272,933
Elk River MN Indpt Sch
Dist No 728 Ser A(16) 5.50% 2/1/2021 Aaa 500 535,510
Medford MN Indpt
Sch No 763 Ser A(12) 5.50% 2/1/2031 Aaa 500 535,510
Minneapolis MN Spl
Sch Dist No 1 COP 5.75% 2/1/2015 AAA 100 103,807
Minneapolis MN Spl
Sch Dist No 1 COP 5.75% 2/1/2017 AAA 1,120 1,162,638
MN Agric & Econ Dev Bd Rev
Hlthcare Sys A(16) 5.50% 11/15/2017 AAA 175 183,598
MN St Higher Edl Facs Auth
Rev Macalester Coll Ser 4-J 5.55% 3/1/2017 Aa3 260 264,282
MN St Higher Edl Facs Auth
Rev Univ of St Thomas Ser 4-A1 5.625% 10/1/2016 A2 250 252,613
MN St Higher Edl Facs Auth
Rev Univ of St Thomas Ser 4-M 5.35% 4/1/2017 A2 250 254,212
Morris MN Indpt Sch
Dist No 769 Bldg(16) 5.00% 2/1/2028 AAA 1,000 1,052,420
Princeton MN Indpt Sch Dist No 477(12) 5.125% 2/1/2024 Aaa 1,000 1,012,600
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
MINNESOTA TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser D 5.375% 7/1/2036 AAA $ 100 $ 108,669
Puerto Rico Comwlth Pub Impt(15)(16) 5.00% 7/1/2028 AAA 325 337,899
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.75% 8/1/2030 Aaa 500 508,810
University MN Ser A ETM 5.75% 7/1/2018 Aaa 250 288,845
---------------
TOTAL 6,874,346
---------------
TRANSPORTATION 12.39%
Minneapolis & St Paul MN Met
Commn Arpt Rev Sub Ser A(16) 5.00% 1/1/2023 AAA 1,000 1,038,140
Minneapolis & St Paul MN Met
Commn Arpt Rev Sub Ser A(2) 5.00% 1/1/2035 AAA 1,000 1,032,080
Minneapolis & St Paul MN Met
Commn Arpt Rev Sub Ser C(11) 5.00% 1/1/2031 AAA 500 517,135
Minneapolis & St Paul MN Met
Commn Arpt Rev Sub Ser C(11) 5.25% 1/1/2026 AAA 2,000 2,100,660
St Paul MN Port Auth Lease
Rev Office Bldg at Robnert St 3-11 5.00% 12/1/2027 AA+ 1,000 1,032,020
---------------
TOTAL 5,720,035
---------------
WATER/SEWER 4.31%
MN Pub Facs Auth Drinking
Wtr Rev Ser A 4.40% 3/1/2024 AAA 2,000 1,987,680
---------------
TOTAL INVESTMENTS IN MUNICIPAL BONDS 96.91% (cost $43,450,640) 44,733,311
===============
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES 3.09% 1,425,011
---------------
NET ASSETS 100.00% $ 46,158,322
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
56
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
MISSOURI TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 102.02%
EDUCATION 14.89%
Bowling Green MO Sch Dist R-I
Bldg Corp Leasehold Rev(16) 5.85% 3/1/2020 Aaa $ 1,000 $ 1,074,470
Curators Univ MO Sys Facs Rev Ser A 5.00% 11/1/2031 AA 3,000 3,099,150
Curators Univ MO Sys Facs Rev
Sys Facs Ser A 5.00% 11/1/2026 AA 1,000 1,044,040
Kansas Cnty MO Met Cmnty
Colleges Bldg Corp Rev Ref(11) 5.00% 7/1/2021 Aaa 1,000 1,040,550
MO St Hlth & Edl Fac Auth Ref
Washington Univ Ser B 5.00% 3/1/2030 AAA 1,800 1,854,324
MO St Hlth & Edl Fac Auth
Washington Univ Ser A 4.75% 11/15/2037 AAA 2,050 2,056,642
MO St Hlth & Edl Fac Auth
Washington Univ Ser A 5.00% 2/15/2022 AAA 600 630,192
MO St Hlth & Edl Fac Auth
Webster Univ(16) 5.25% 4/1/2021 Aaa 2,000 2,110,200
MO St Hlth & Edl Facs Auth
Rev Edl Facs Washington Univ 5.00% 2/15/2033 AAA 6,995 7,215,762
Puerto Rico Comwlth Bal Pub Impt
PA 1280 RIBs RITES 5.788% 7/1/2034 AA+ 2,000 2,050,920
University MO Univ Rev Ref
Sys Facs Ser B(15)(16) 5.00% 11/1/2027 AAA 1,500 1,549,980
---------------
TOTAL 23,726,230
---------------
GENERAL OBLIGATION 11.43%
Franklin Cnty MO Reorg Sch
Dist No R-XV 6.00% 3/1/2020 AA+ 390 421,590
Hazelwood MO Sch Dist Impt MO
Direct Dep Pg 5.25% 3/1/2020 AA+ 630 677,477
Marion Cnty MO Sch Dist No 060
Ref & Impt MO Direct Dep(12) 5.00% 3/1/2025 AAA 1,400 1,472,884
North Kansas City MO Sch Dist
No 74 Ref & Impt MO Direct Dep 5.00% 3/1/2025 AA+ 1,750 1,825,285
Puerto Rico Comwlth Pub
Impt Ser A(15)(16) 5.50% 7/1/2029 AAA 1,000 1,157,400
Puerto Rico Comwlth Pub Impt Ser B(11) 5.50% 7/1/2011 AAA 3,985 4,321,533
Puerto Rico Muni Fin Agy Ser A(12) 5.75% 8/1/2012 AAA 1,200 1,290,696
St Louis Cnty MO Pkwy Sch Ser A 5.00% 3/1/2024 AA+ 3,320 3,485,568
St Louis Cnty MO Sch Dist No R 8
Lindbergh(16) Zero Coupon 3/1/2018 AAA 2,080 1,253,387
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MISSOURI TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
St Louis MO Bd Ed MO Direct
Dep Pg Ser A(16) 5.00% 4/1/2025 AAA $ 1,000 $ 1,053,030
University City MO Sch Dist(16) 10.00% 2/15/2008 AAA 1,175 1,258,872
---------------
TOTAL 18,217,722
---------------
HEALTHCARE 10.95%
Cape Girardeau Cnty MO Ind
Dev Auth Hlthcare Facs Rev(b) 5.75% 6/1/2032 A- 1,600 1,660,224
Hannibal MO Ind Dev Auth Hlth
Fac Rev Regl Hosp Ser A(12) 5.625% 3/1/2012 AAA 2,170 2,218,087
Hannibal MO Indl Dev Auth
Hlth Facs Rev(c) 5.00% 3/1/2022 BBB+ 835 855,950
Joplin MO Indl Dev Auth
Hlthfacs Rev Freeman Hlth Pj 5.75% 2/15/2035 BBB+ 2,500 2,657,650
MO St Hlth & Edl Facs Auth BJC Hlth 5.25% 5/15/2032 AA 5,000 5,194,950
MO St Hlth & Edl Facs Auth
Rev PA 1049 RIBs RITES(2) 9.047% 6/1/2010 AAA(a) 855 1,086,979
MO St Hlth & Edl Facs Auth
Rev Sr Living Facs Lutheran Ser A(b) 5.375% 2/1/2035 A- 3,680 3,782,488
---------------
TOTAL 17,456,328
---------------
HOUSING 9.32%
MO St Dev Fin Bd Multi Fam
Rev Quality Hill Pj Ser A(17) 5.60% 9/15/2028 AA 2,115 2,140,930
MO St Hsg Dev Cmnty Rev
Multi Fam Hsg Ashley Pk-2 AMT(9) 4.75% 7/1/2026 AA 1,000 1,002,250
MO St Hsg Dev Cmnty Rev
Multi Fam Hsg Ashley Pk-2 AMT(9) 4.75% 7/1/2030 AA 1,000 992,810
MO St Hsg Dev Cmnty Rev
Multi Fam Hsg Ashley Pk-2 AMT(9) 4.875% 7/1/2037 AA 1,500 1,502,775
MO St Hsg Dev Cmnty Rev
Multi Fam Hsg Meadow Ridge-1 AMT(9) 4.75% 7/1/2025 AA 605 597,443
MO St Hsg Dev Cmnty Rev
Multi Fam Hsg Meadow Ridge-1 AMT(9) 4.875% 7/1/2030 AA 530 518,525
MO St Hsg Dev Cmnty Rev
Multi Fam Hsg Meadow Ridge-1 AMT(9) 5.00% 7/1/2037 AA 900 890,100
MO St Hsg Dev Cmnty Sing Fam
Mtg Rev Hmownrship Ln Pg A AMT(14) 4.75% 9/1/2026 AAA 1,200 1,181,460
MO St Hsg Dev Cmnty Sing Fam
Mtg Rev Hmownrship Ln Pg B AMT(c)(14) 4.70% 9/1/2026 AAA 2,000 1,981,780
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
58
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MISSOURI TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MO St Hsg Dev Cmnty Sing Fam
Mtg Rev Hmownrship Ln Pg B AMT(c)(14) 4.80% 9/1/2031 AAA $ 2,000 $ 1,979,640
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Hmownr Ln Pg A-1 AMT(14) 5.90% 9/1/2035 AAA 980 1,040,515
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Mtg Rev AMT(14) 5.375% 9/1/2022 AAA 790 801,084
MO St Hsg Dev Cmnty Mtg Rev
Sing Fam Ser E-1 AMT(14) Zero Coupon 3/1/2029 AAA 785 224,526
---------------
TOTAL 14,853,838
---------------
INDUSTRIAL 0.71%
Childrens Tr Fd Puerto Rico
Tob Settlment Rev Asset Bkd Bds 5.50% 5/15/2039 BBB 1,100 1,130,921
---------------
LEASE 8.62%
Cape Girardeau Cnty
MO Bldg Corp Reorg Sch Dist R-02
Jackson R-II HS Pj(16) 5.25% 3/1/2026 AAA 1,000 1,070,930
Gladstone MO Ser A COP(2) 5.35% 6/15/2016 Aaa 1,095 1,156,254
Grandview MO COP(11) 5.00% 1/1/2027 Aaa 1,700 1,766,861
Jackson Cnty Mo Pub Bldg Corp
Leasehold Rev Cap Impts Pj 5.00% 12/1/2029 Aa3 1,500 1,543,425
Kansas City MO Sch Dist Bldg
Ref Elem Sch Pj Ser B(11) 5.00% 2/1/2012 Aaa 1,090 1,159,444
Kansas City MO Spl Fac Rev
MCI Overhaul Base Pj Ser G AMT 4.50% 9/1/2026 AA- 530 501,518
MO Dev Fin Bd Cultural Facs
Nelson Gallery Fndtn Ser A(16) 5.00% 12/1/2030 AAA 3,300 3,409,659
MO St Regl Convtn & Sports
Complex Auth Ref Convtn(2) 5.25% 8/15/2016 AAA 2,405 2,602,908
St Francois Cnty MO COP(11) 5.00% 2/1/2025 AAA 500 525,815
---------------
TOTAL 13,736,814
---------------
MISCELLANEOUS 9.48%
Kansas City MO Muni
Assistance Corp Leasehold Bartle(16) 5.00% 4/15/2020 AAA 1,500 1,526,925
Kansas City MO Muni Assistance
Corp Rev Leasehold Ser 2001A(2) 5.00% 3/1/2019 AAA 1,500 1,567,590
Kansas City MO Muni Assistance
Corp Rev Ser A 5.125% 3/1/2019 A2 1,100 1,141,239
MO Dev Fin Bd Cultural Facs
Nelson Gallery(16) 5.25% 12/1/2013 AAA 2,305 2,471,121
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
59
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MISSOURI TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MO St Dev Fin Bd Infra Facs Rev
Crackerneck Creek Pj Ser C 5.00% 3/1/2028 A+ $ 1,000 $ 1,014,000
MO St Dev Fin Bd Infra Fac
Rev Hartman Hrtge Ctr Ser A(2) 5.875% 4/1/2020 Aaa 1,000 1,059,260
Puerto Rico Pub Bldgs Auth
Rev Govt Facs Ser I GTD 5.25% 7/1/2033 BBB 2,500 2,598,050
Puerto Rico Pub Bldgs Auth
Rev Ref Govt Facs Ser C GTD 5.75% 7/1/2018 BBB 1,000 1,113,580
St Louis MO Ind Dev Auth Rev
Convtn Ctr Hotel(2) Zero Coupon 7/15/2020 AAA 2,000 1,043,320
St Louis MO Muni Fin Corp
Lease Carnahan Courthouse SerA(11) 5.125% 2/15/2027 Aaa 1,500 1,564,215
---------------
TOTAL 15,099,300
---------------
POWER 2.29%
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN 5.125% 7/1/2029 A3 1,500 1,551,645
Puerto Rico Elec Pwr Auth Pwr
Rev Ser RR(19) 5.00% 7/1/2025 AAA 2,000 2,094,800
---------------
TOTAL 3,646,445
---------------
PRE-REFUNDED 17.25%
Belton MO Sch Dist No 124 MO
Direct Deposit Pg(12) 6.00% 3/1/2020 AAA 1,770 1,918,715
Boone Cnty MO Reorg
Sch Dist No R-6 6.00% 3/1/2020 AA+ 500 540,120
Mehlville MO Sch Dist No R9
MO Cap Impt Pj COP(12) 5.25% 9/1/2013 AAA 1,000 1,078,770
MO Sch Bds Assoc Lease Partn
NIXA Reorg Sch Dist R-2(17) 5.40% 3/1/2020 AA 850 891,106
MO St Bonne Terre Prison Pj
Ser A COP(2) 5.15% 6/1/2018 AAA 1,015 1,060,563
MO St Envr Impt & Enrg St
Revolving FD-E 5.625% 7/1/2016 Aaa 630 639,576
MO St Hlth & Edl Facs Auth
Washington Univ Ser A 6.00% 3/1/2030 Aaa 850 927,171
MO St Hlth & Edl Facs Auth Rev(2) 5.25% 6/1/2028 AAA 5,000 5,397,000
Muni Secs Trust Ctfs Ser 7005
Cl B ETM RIBs+ 7.144% 10/1/2040 Aaa 3,050 3,484,015
Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 AAA 1,210 1,293,151
Puerto Rico Comwlth Ser A 5.50% 10/1/2040 AAA 2,700 2,892,105
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
60
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MISSOURI TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Springfield MO Sch Dist No R12
MO Direct Deposit Pg 5.85% 3/1/2020 AA+ $ 500 $ 537,420
St Louis MO Muni Fin Corp Rev
City Justice Ctr Ser A(2) 6.00% 2/15/2020 Aaa 760 829,776
St Louis MO Pub Safety(11) 5.125% 2/15/2018 AAA 270 282,477
St. Louis Cnty MO Pattonville
No R-3 Sch Dist(11) 6.00% 3/1/2019 AAA 845 921,718
St. Louis MO Arpt Rev Arpt
Dev Pg Ser A(16) 5.25% 7/1/2031 AAA 2,000 2,144,320
St. Louis MO Pkg Fac Rev ETM(16) 5.375% 12/15/2021 AAA 10 10,314
St. Louis MO Sch Dist(11) 6.00% 4/1/2012 AAA 575 582,550
University MO Univ Rev Sys Facs 5.80% 11/1/2027 AA 1,975 2,059,451
---------------
TOTAL 27,490,318
---------------
RESOURCE RECOVERY 1.62%
MO St Envr Impt & Enrg
Unrefunded Bal St Revolving B 7.20% 7/1/2016 Aaa 1,085 1,095,134
MO St Envr Impt & Enrg
Unrefunded Bal St Revolving D 5.625% 7/1/2016 Aaa 220 223,225
MO St Envr Impt & Enrg
Unrefunded Bal St Revolving E 5.90% 1/1/2019 Aaa 240 242,978
St Louis MO Ind Dev Auth
Anheuser-Busch Pj AMT 5.875% 11/1/2026 A+ 1,005 1,026,216
---------------
TOTAL 2,587,553
---------------
TRANSPORTATION 9.54%
Bi State Dev Agy MO Met Dist
Rev Metrolink Cross Cnty Pj B(12) 5.00% 10/1/2032 AAA 3,500 3,623,690
MO St Hwy & Trans Commn St
Rd Rev Multi Modal Third Lien B-2 3.10%# 5/1/2015 Aaa 1,300 1,300,000
MO St Hwy & Trans Commn St Rd
Rev Ser A 5.00% 2/1/2022 AAA 1,970 2,054,671
MO St Hwy & Trans Commn St Rd
Rev Ser A 5.25% 2/1/2020 AAA 1,830 1,938,373
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 BBB+ 500 535,115
Puerto Rico Comwlth Hwy &
Transn Auth Rev PA 1052 RIBs RITES 7.208% 1/1/2010 AAA(a) 2,500 3,036,700
St. Louis MO Arpt Rev
Airport Dev Pg Ser A(16) 5.125% 7/1/2022 AAA 2,000 2,084,140
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
MISSOURI TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
St Louis MO Arpt Rev Lambert
St Louis Int'l Ser B AMT(11) 5.25% 7/1/2027 AAA $ 625 $ 636,156
---------------
TOTAL 15,208,845
---------------
WATER/SEWER 5.92%
Metropolitan St Louis MO Swr
Dist Wastewtr Sys Rev Ser A(16) 5.00% 5/1/2034 AAA 4,000 4,161,440
MO St Dev Fin Bd Solid Wst
Disp Rev P & G Paper Pj AMT 5.20% 3/15/2029 AA- 1,000 1,078,530
MO St Envr Impt & Enrg Res
Auth Wtr Pollutn Rev Pg A 5.00% 7/1/2014 Aaa 1,000 1,073,170
St. Charles Cnty MO Pub Wtr
Supply Dist No 2 COP(16) 5.125% 12/1/2027 Aaa 3,000 3,127,500
---------------
TOTAL 9,440,640
---------------
TOTAL INVESTMENTS IN MUNCIPAL BONDS 102.02% (cost $156,973,750) 162,594,95
===============
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS (2.02%) (3,218,644)
---------------
NET ASSETS 100.00% $ 159,376,31
===============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
NEW JERSEY TAX-FREE FUND March 31, 2006
<Table>
MUNICIPAL BONDS 99.38%
EDUCATION 17.08%
Higher Ed Stud Assist Auth NJ
Student Loan Rev Ser A AMT(16) 6.15% 6/1/2019 AAA 635 643,903
NJ Econ Dev Auth Rev Sch Facs
Constr Ser 0 5.125% 3/1/2030 AA- 2,500 2,600,475
NJ Econ Dev Auth Sch Facs
Constr Ser P 5.25% 9/1/2024 AA- 2,000 2,136,060
NJ Econ Dev Auth Sch Facs
Constr Ser P 5.25% 9/1/2026 AA- 1,000 1,064,060
NJ St Edl Facs Auth Rev Kean
Univ Ser D(11) 5.00% 7/1/2033 AAA 2,500 2,584,125
NJ St Edl Facs Auth Rev
Princeton Theological Seminary 5.00% 7/1/2026 AAA 2,500 2,607,700
NJ St Edl Facs Auth Rev Ref
Rowan Univ Ser D(2) 4.50% 7/1/2030 AAA 1,100 1,072,962
NJ St Edl Facs Auth Rev Ser I
Rowan(11) 5.125% 7/1/2030 AAA 2,650 2,781,228
NJ St Edl Facs Auth Rev
Richard Stockton College F(2) 5.00% 7/1/2028 Aaa 1,000 1,041,990
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
62
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
NJ St Edl Facs Auth Rev
William Paterson Ser E(19) 5.00% 7/1/2027 AAA $ 2,500 $ 2,591,950
Puerto Rico Comwlth
PA 1280 RIBs RITES 5.788% 7/1/2034 AA+ 2,000 2,050,920
Rutgers St Univ NJ COP(2) 5.00% 1/1/2024 AAA 800 834,344
Rutgers St Univ NJ Ser A 5.20% 5/1/2027 AA 750 775,957
---------------
TOTAL 22,785,674
---------------
GENERAL OBLIGATION 3.31%
Millburn Twp NJ Sch Dist 5.35% 7/15/2018 Aa1 1,050 1,176,640
Millburn Twp NJ Sch Dist 5.35% 7/15/2019 Aa1 250 282,560
Montville Twp NJ Fire Dist No 23 5.25% 7/15/2016 A2 410 438,606
Pohatcong Twp NJ Sch Dist(12) 5.25% 7/15/2026 AAA 1,335 1,510,259
Puerto Rico Comwlth Pub Impt(6)(12) 4.50% 7/1/2023 AAA 1,000 1,010,320
---------------
TOTAL 4,418,385
---------------
HEALTHCARE 14.10%
Camden Cnty NJ Impt Auth Hlthcare
Redev Rev Cooper Health Sys Oblig Grp A 5.00% 2/15/2035 BBB 500 492,455
NJ Econ Dev Auth Rev Masonic
Charity Fndtn Pj 6.00% 6/1/2025 A+ 1,000 1,093,860
NJ Hlthcare Facs Fin Auth
Dept Human Svcs Greystone Pk
Psychiatric Hosp(2) 5.00% 9/15/2027 AAA 1,200 1,246,656
NJ Hlthcare Fac Fin Auth Rev
Robert Wood Johnson Univ Hosp 5.75% 7/1/2031 A2 4,000 4,265,360
NJ Hlthcare Fac Fin Auth Rev
Spectrum For Living Ser B(9) 6.50% 2/1/2022 AAA 720 721,224
NJ Hlthcare Facs Fin Auth Rev
Hunterdon Medical Ctr Ser A 5.25% 7/1/2025 A- 600 629,520
NJ Hlthcare Facs Fin Auth
Rev Cap Hlth Sys Oblig Grp Ser A 5.375% 7/1/2033 Baa1 2,000 2,053,480
NJ Hlthcare Facs Fin Auth
Rev RWJ Hlthcare Corp Ser B(17) 5.00% 7/1/2035 AA 1,000 1,025,220
NJ Hlthcare Facs Fin Auth
Rev St Clare's Hosp Ser A(17) 4.75% 7/1/2025 AA 1,100 1,088,978
Passaic Cnty NJ Impt Auth Lease
Rev Preakness Hlthcare Ctr Pj(2) 5.00% 5/1/2035 Aaa 1,500 1,555,305
Puerto Rico Indl Tourist Edl &
Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2030 AA 1,000 1,101,390
Puerto Rico Indl Tourist Edl
Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2025 AA 415 458,372
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
63
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW JERSEY TAX-FREE FUND March 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Indl Tourist Edl
Mutuo Oblig Grp Ser A(16) 6.25% 7/1/2024 AAA $ 1,000 $ 1,011,540
Univ Medicine & Dentistry NJ COP(16) 5.00% 6/15/2036 AAA 2,000 2,062,240
---------------
TOTAL 18,805,600
---------------
HOUSING 0.08%
Virgin Islands Hsg Fin Auth
Sing Fam Rev Ser A AMT(13) 6.50% 3/1/2025 AAA(a) 100 100,846
---------------
INDUSTRIAL 7.56%
Bayonne NJ Redev Agy Royal
Caribbean Pj Ser A AMT 5.375% 11/1/2035 BBB- 750 761,152
NJ Econ Dev Auth Amer Wtr Co
Inc Ser B AMT(11) 5.375% 5/1/2032 AAA 5,000 5,172,250
NJ Econ Dev Auth Middlesex
Wtr Co Pj AMT(16) 5.35% 2/1/2038 AAA 2,500 2,567,500
NJ Econ Dev Auth Dev Rev
Ref Kapkowski Rd Landfill Pj 6.50% 4/1/2028 Baa3 675 797,641
Tob Settlment Fin Corp NJ Asset Bkd 5.75% 6/1/2032 BBB 755 785,034
---------------
TOTAL 10,083,577
---------------
LEASE 2.32%
Morris-Union Jointure Commn NJ COP(17) 5.00% 5/1/2027 AA 1,000 1,026,380
Rutgers St Univ NJ COP(2) 5.00% 1/1/2038 AAA 2,000 2,063,280
---------------
TOTAL 3,089,660
---------------
MISCELLANEOUS 6.83%
Hudson Cnty NJ Impt Auth
Hudson Regl Fire/Rescue Ser A(2) 5.625% 9/1/2019 Aaa 100 106,456
Middlesex Cnty NJ Impt Auth
Cnty Open Space Tr Fd GTD 5.25% 9/15/2022 AAA 1,910 2,045,858
Monmouth Cnty NJ Impt Auth
Rev Unrefunded Bal Govtl Ln(16) 6.40% 12/1/2009 AAA 195 197,250
NJ Econ Dev Auth Rev Motor
Vehicle Surcharges Rev Ser A(16) 5.00% 7/1/2034 AAA 485 502,858
NJ Econ Dev Auth Rev Muni Rehab(2) 5.00% 4/1/2028 AAA 1,130 1,165,606
NJ Envr Infra Ser 2004A 5.25% 9/1/2020 AAA 2,000 2,122,620
NJ Sports & Exposition Auth
St Contract Ser A(2) 5.00% 3/1/2026 AAA 1,230 1,287,687
Puerto Rico Pub Bldgs Auth
Rev Govt Facs Ser I GTD 5.25% 7/1/2033 BBB 1,250 1,299,025
Rahway NJ COP(16) 5.625% 2/15/2020 Aaa 365 389,543
---------------
TOTAL 9,116,903
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
64
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
POWER 4.82%
Brick Twp NJ Muni Util Auth(11) 5.00% 12/1/2025 Aaa $ 2,000 $ 2,088,420
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN(16) 5.00% 7/1/2032 AAA 2,000 2,073,560
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN 5.125% 7/1/2029 A3 1,000 1,034,430
Puerto Rico Elec Pwr Auth Pwr
Rev Ser RR(19) 5.00% 7/1/2025 AAA 1,175 1,230,695
---------------
TOTAL 6,427,105
---------------
PRE-REFUNDED 26.47%
Carteret NJ Bd Ed COP(16) 5.75% 1/15/2030 Aaa 80 85,838
Carteret NJ Bd Ed COP(16) 6.00% 1/15/2024 Aaa 430 467,174
Casino Reinvestment Dev Auth
NJ Parking Fee Rev Ser A(12) 5.25% 10/1/2015 AAA 100 102,444
Chatham Dist NJ Bd Ed(16) 5.00% 1/15/2019 Aaa 1,020 1,076,610
Chatham Dist NJ Bd Ed(16) 5.125% 1/15/2024 Aaa 595 631,253
Chatham Dist NJ Bd Ed(16) 5.25% 1/15/2026 Aaa 1,500 1,599,525
LaFayette Yard NJ Cmnty Dev GTD(16) 5.625% 4/1/2021 Aaa 200 216,116
Muni Secs Trust Ctfs Ser 7005
Cl B ETM RIBs+ 7.144% 10/1/2040 Aaa 1,000 1,142,300
NJ Bldg Auth St Bldg Rev 5.375% 6/15/2019 AA- 450 473,180
NJ St Edl Facs Auth Rev
Princeton Univ Ser B 5.125% 7/1/2019 AAA 355 370,840
NJ St Edl Facs Auth Rev
Princeton Univ Ser H 5.25% 7/1/2017 AAA 700 741,881
NJ St Edl Facs Auth Rev
Princeton Univ Ser H 5.25% 7/1/2022 AAA 2,560 2,713,165
NJ St Edl Facs Auth Rev
Princeton Univ Ser H 5.25% 7/1/2026 AAA 2,350 2,490,600
NJ St Edl Facs Auth Rev
Princeton Univ Ser H 5.375% 7/1/2024 AAA 2,550 2,714,960
NJ St Hwy Auth Garden St Pkwy
Gen Rev Ref Sr Pkwy(11) 5.75% 1/1/2015 AAA 200 216,144
NJ St Tpk Auth Rev Ser A 5.50% 1/1/2027 A 3,000 3,184,620
NJ St Tpk Auth Rev Ser A(16) 5.50% 1/1/2030 AAA 1,500 1,594,995
NJ St Transn Tr Fd Auth
Transn Sys Ser B 6.00% 6/15/2019 AAA 6,500 7,072,845
North Bergen Twp NJ Bd Ed COP(12) 6.125% 12/15/2022 Aaa 1,185 1,317,151
Ocean Cnty NJ Gen Impt 5.125% 9/1/2020 Aa1 1,800 1,917,882
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
65
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Pohatcong Twp NJ Sch Dist(12) 5.95% 7/15/2023 AAA $ 650 $ 667,453
Pohatcong Twp NJ Sch Dist(12) 5.95% 7/15/2026 AAA 250 256,713
Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 AAA 620 662,606
South Brunswick Twp NJ(11) 5.625% 12/1/2023 AAA 45 48,013
Summit NJ 5.70% 6/1/2020 AAA 325 344,870
Trenton NJ Pkg Auth Pkg Rev GTD(11) 6.00% 4/1/2017 Aaa 1,000 1,085,720
Washington Twp NJ Bd Ed
Mercer Cnty(11) 5.00% 1/1/2027 Aaa 2,000 2,121,540
---------------
TOTAL 35,316,438
---------------
TOLL ROADS 1.59%
NJ St Tpk Auth Rev Rols
RR II R 323 RIBs(2) 6.709% 1/1/2035 Aaa 2,000 2,119,160
---------------
TRANSPORTATION 14.29%
Delaware River Port Auth PA &
NJ Ref Port Dist Pj Ser B(12) 5.10% 1/1/2021 AAA 1,435 1,521,186
Delaware River Port Auth PA &
NJ Ref Port Dist Pj Ser B(12) 5.20% 1/1/2025 AAA 1,700 1,803,581
Delaware River Port Auth PA &
NJ Rev(11) 5.50% 1/1/2026 AAA 1,000 1,022,080
Port Auth NY & NJ(12) 5.00% 4/15/2032 AAA 4,725 4,932,948
Port Auth NY & NJ Cons 109th Ser 5.375% 1/15/2032 AA- 500 511,465
Port Auth NY & NJ Cons 119th
Ser AMT(11) 5.50% 9/15/2019 AAA 150 152,508
Port Auth NY & NJ Cons 125th Ser(12) 5.00% 10/15/2027 AAA 5,000 5,247,200
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 BBB+ 500 535,115
Puerto Rico Comwlth Hwy &
Transn Auth Rev PA 1052 RIBs RITES 7.208% 1/1/2010 AAA(a) 2,750 3,340,370
---------------
TOTAL 19,066,453
---------------
WATER/SEWER 0.93%
North Hudson Swr Auth NJ
Rev Ser C(16) 5.00% 8/1/2022 Aaa 1,025 1,061,705
Ocean Twp NJ Swr Auth Ref Ser B(11) 5.25% 12/1/2011 Aaa 170 182,789
---------------
TOTAL 1,244,494
---------------
TOTAL MUNICIPAL BONDS (cost $125,647,144) 132,574,295
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
66
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
NEW JERSEY TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING:
INTEREST MATURITY S&P OR SHARES
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT 0.23%
MONEY MARKET MUTUAL FUND 0.23%
Dreyfus NJ Municipal Cash Management (cost $305,133) 305 $ 305,133
---------------
TOTAL INVESTMENTS IN SECURITIES 99.61% (cost $125,952,277) 132,879,428
===============
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES 0.39% 517,192
---------------
NET ASSETS 100.00% $ 133,396,620
===============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
NEW YORK TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
----------
MUNICIPAL BONDS 99.03%
EDUCATION 8.64%
Albany Cnty NY Indl Dev Agy
Albany College of Pharmacy A 5.625% 12/1/2034 BBB- $ 700 737,926
Erie Cnty NY Indl Dev Agy
City Sch Dist Buffalo Pj(12) 5.75% 5/1/2026 AAA 1,000 1,118,950
Hempstead Twn NY Ind Dev Agy
Civic Fac Rev Hofstra Univ Pj(16) 5.80% 7/1/2015 AAA 750 768,833
NY New York City Indl Dev Agy
Civic Fac Rev NY Institute of Tech Pj(16) 5.25% 3/1/2023 AAA 100 107,100
NY St Dorm Auth Lease Rev Cap
Apprec Court Fac Zero Coupon 8/1/2021 AA+ 3,265 1,655,975
NY St Dorm Auth Rev 4201 Schools Pg 6.25% 7/1/2020 AA- 1,685 1,853,904
NY St Dorm Auth Rev Colgate Univ(16) 6.00% 7/1/2016 AAA 1,000 1,150,270
NY St Dorm Auth Rev New York
Univ Ser A(2) 5.75% 7/1/2015 AAA 2,000 2,261,380
NY St Dorm Auth Rev Pratt Institute(17) 6.00% 7/1/2024 AA 1,000 1,080,260
NY St Dorm Auth Rev Pratt Institute(17) 6.00% 7/1/2028 AA 2,000 2,157,960
NY St Dorm Auth Rev Sp Act
Sch Dist Pj(12)(16) 6.00% 7/1/2016 AAA 1,400 1,423,016
NY St Dorm Auth Revs New York
Univ A(11) 5.00% 7/1/2034 AAA 3,125 3,246,625
NY St Dorm Auth Revs Non St
Supported Debt Insd McQuade Fndtn(2) 4.25% 7/1/2020 AAA 250 247,353
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
67
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
NY St Dorm Auth St Personal
Income Tax Rev Ed Ser F 5.00% 3/15/2035 AAA $ 500 $ 518,230
Rensselaer Cnty NY Indl Dev
Polytech Inst Ser B(2)(18) 5.50% 8/1/2022 AAA 200 210,988
Schenectady NY Indl Dev Agy
Civic Fac Rev Union College(2) 5.625% 7/1/2031 Aaa 1,500 1,644,435
St Lawrence Cnty NY Indl
Civic Fac Rev Clarkson Univ Pj 5.125% 7/1/2021 A3 250 258,020
---------------
TOTAL 20,441,225
---------------
GENERAL OBLIGATION 10.31%
Erie Cnty NY Indl Dev Agy Sch
Fac Rev City of Buffalo Pj(12) 5.75% 5/1/2023 AAA 1,250 1,357,737
New York NY Ref Ser B 5.75% 8/1/2016 A+ 1,000 1,093,340
New York NY Ser G 5.00% 8/1/2023 A+ 5,000 5,204,450
New York NY Sub Ser C-1 5.25% 8/15/2026 A+ 2,500 2,648,975
New York NY Unrefunded Bal C(12) 5.75% 3/15/2027 AAA 1,305 1,416,825
New York NY Unrefunded Bal Ser C 5.625% 3/15/2020 AAA 155 167,354
New York NY Ser E 5.25% 8/1/2014 A+ 1,000 1,068,140
New York NY Ser J 5.50% 6/1/2022 A+ 5,095 5,480,844
Puerto Rico Comwlth Pub Impt 5.25% 7/1/2018 BBB 2,000 2,134,000
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2033 BBB 500 506,020
Puerto Rico Comwlth Pub Impt Ser A 5.25% 7/1/2024 BBB 1,500 1,560,285
Puerto Rico Comwlth Unrefunded Bal
Pub Impt Ser A 5.375% 7/1/2028 BBB 1,090 1,130,385
Puerto Rico Comwlth
Unrefunded Pub Impt(15)(16) 5.00% 7/1/2028 AAA 605 619,278
---------------
TOTAL 24,387,633
---------------
HEALTHCARE 4.24%
Cortland Cnty NY Indl Dev Agy
Cortland Mem Hosp Pj(17) 5.625% 7/1/2024 AA 1,750 1,890,000
NY City Indl Dev Agy Rev
Harbor House Pj A(13) 5.875% 5/20/2044 AA+ 610 680,644
NY St Dorm Auth Rev Insd NY
St Rehab Assn Ser A(2) 5.50% 7/1/2016 AAA 935 1,009,361
NY St Dorm Auth Rev Mental
Hlth Svc Fac(15)(16) 6.00% 8/15/2012 AAA 1,460 1,631,170
NY St Dorm Auth Rev Mtg
Nursing Home A(9)(16) 5.40% 2/1/2031 AAA 300 318,039
NY St Dorm Auth Rev Mtg
Nursing Home A(9)(16) 5.50% 8/1/2030 AAA 1,000 1,062,040
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
68
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
NY St Dorm Auth Rev Mtg
Nursing Home A(9)(16) 5.50% 8/1/2038 AAA $ 1,000 $ 1,058,780
NY St Dorm Auth Rev Utd
Cerebral Palsy Aff No 1-A(2) 5.75% 7/1/2018 AAA 1,000 1,102,360
NY St Dorm Auth Revs Catholic
Hlth Long Island Oblig Grp 5.00% 7/1/2027 Baa1 1,250 1,255,775
NY St Dorm Auth Revs
Unrefunded Mental Hlth Svcs B(16) 6.00% 2/15/2025 AAA 15 16,135
NY St Dorm Auth Revs
Unrefunded Mental Hlth Svcs B(16) 6.00% 2/15/2030 AAA 15 16,107
---------------
TOTAL 10,040,411
---------------
HOUSING 5.12%
NY New York City Hsg Dev Corp
Multi Fam Hsg Rev Ser A AMT 5.50% 11/1/2034 AA 1,500 1,536,435
NY New York City Hsg Dev Corp
Multi Fam Hsg Rev Ser A-1(15)(16) 4.50% 11/1/2027 AAA 1,345 1,339,445
NY New York City Hsg Dev Corp
Multi Fam Rev Hsg Ser L AMT 4.85% 11/1/2025 AA 3,205 3,192,853
NY New York City Hsg Dev Corp
Ser B-2 AMT 5.30% 5/1/2036 AA 2,000 2,046,040
NY St Dorm Auth Revs Insd
Jewish Bd Fam & Children(2) 5.00% 7/1/2023 AAA 500 522,490
NY St Dorm Auth Revs Ref Dept
of Hlth 5.00% 7/1/2023 AA- 400 415,288
NY St Dorm Auth Revs Upstate
Cmnty Colleges Ser B 5.25% 7/1/2021 AA- 1,000 1,070,270
NY St Dorm Auth Revs
Unrefunded 05 Mental D(15)(16) 6.00% 8/15/2021 AAA 20 20,771
NY St Mtg Agy Rev Hmownr Mtg Ser 70 5.40% 4/1/2022 Aa1 70 71,998
NY St Mtg Agy Rev Hmownr Mtg
Ser 111 AMT(16) 4.55% 4/1/2023 AAA 250 244,785
NY St Mtg Agy Rev Hmownr Mtg
Ser 130 AMT 4.80% 10/1/2037 Aa1 1,680 1,655,825
---------------
TOTAL 12,116,200
---------------
INDUSTRIAL 1.97%
NY Indl Dev Agy Pkg Fac Rev
Royal Charter NY Presbyterian(12) 5.75% 12/15/2029 AAA 1,000 1,097,240
NY New York City Indl Dev Agy Civic
Fac Rev American Natl Red Cross Pj(2) 5.00% 2/1/2036 Aaa 500 518,835
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
69
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
NY New York City Indl Dev Agy
United Jewish Appeal Fed Pj A 5.00% 7/1/2027 Aa2 $ 1,250 $ 1,303,037
TSASC Inc NY Ser 1 5.00% 6/1/2026 BBB 1,750 1,730,173
---------------
TOTAL 4,649,285
---------------
LEASE 1.98%
NY St Urban Dev Corp Rev St Fac 5.70% 4/1/2020 AA- 4,150 4,693,359
---------------
MISCELLANEOUS 8.77%
Broome Cnty NY Indl Dev Agy Civic
Fac Rev Univ Plaza Phase II Pj Ser B(1) 5.10% 8/1/2036 A 500 505,710
Broome Cnty NY Indl Dev Agy
Univ Plaza LLC Phase 1 Pj A(1) 5.20% 8/1/2030 A 750 766,718
Broome Cnty NY Indl Dev Agy
Univ Plaza LLC Phase 1 Pj A(1) 5.20% 8/1/2036 A 1,000 1,018,860
New York Convention Ctr Dev Corp
NY Rev Hotel Unit Fee Secd(2) 5.00% 11/15/2035 AAA 15,000 15,615,000
NY New York City Tr Cultr Res Rev
Museum of American Art(1) 6.00% 7/1/2022 A 500 537,760
Puerto Rico Pub Bldgs Auth
Rev Govt Fac Ser G GTD 5.00% 7/1/2026 BBB 2,000 2,030,900
Puerto Rico Pub Bldgs Auth
Rev Unrefunded Bal Govt Facs Ser D 5.25% 7/1/2027 BBB 265 276,567
---------------
TOTAL 20,751,515
---------------
POWER 4.92%
NY St Enrg Res & Dev Auth Gas
Fac Rev Bklyn Ser B AMT RIBs 10.264% 7/1/2026 A+ 4,000 4,216,000
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN(16) 5.00% 7/1/2032 AAA 1,500 1,555,170
Puerto Rico Elec Pwr Auth
Ser PP(11) 5.00% 7/1/2025 AAA 2,000 2,091,900
Puerto Rico Elec Pwr Auth
Rev Ser II 5.25% 7/1/2031 A3 3,625 3,770,689
---------------
TOTAL 11,633,759
---------------
PRE-REFUNDED 32.66%
Albany NY Muni Wtr Fin Auth
Wtr & Swr Sys Rev Ser A(11) 6.375% 12/1/2017 AAA 650 716,937
Buffalo NY Muni Wtr Fin Auth
Wtr Sys Rev(11) 5.75% 7/1/2021 AAA 500 512,705
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
70
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Buffalo NY Muni Wtr Fin Auth
Wtr Sys Rev(12) 6.00% 7/1/2029 AAA $ 500 $ 540,800
Metropolitan Transn Auth NY
Commuter Fac Rev Ser A(11) 6.00% 7/1/2016 AAA 2,000 2,103,560
Metropolitan Transn Auth NY
Commuter Fac Rev Ser A(11) 6.00% 7/1/2021 AAA 5,000 5,130,000
Metropolitan Transn Auth NY
Commuter Fac Rev Ser A(11) 6.10% 7/1/2026 AAA 2,000 2,052,460
Metropolitan Transn Auth NY
Dedicated Tax Fd Ser A(11) 4.75% 4/1/2028 AAA 2,500 2,646,825
Metropolitan Transn Auth NY
Transn Fac Rev Svc Cntrct Ser R 5.50% 7/1/2017 AAA 1,000 1,110,760
Muni Secs Trust Ctfs Ser 7005
Cl B ETM RIBs+ 7.144% 10/1/2040 Aaa 2,000 2,284,600
New York City Transn Fin Auth
Fut Tax 2004 Ser C 5.50% 5/1/2025 AAA 5 5,322
New York City Transn Fin Auth
Fut Tax 2005 C 5.50% 5/1/2025 AAA 550 585,382
New York City Transn Fin Auth
Fut Tax Secd C 5.50% 5/1/2025 AAA 445 473,627
New York City Transn Fin Auth
Rev Fut Tax 2nd Ser A 6.00% 8/15/2029 AAA 200 216,832
New York City Transn Fin Auth
Rev Fut Tax 2nd Ser B 6.00% 11/15/2024 AAA 950 1,043,803
New York City Transn Fin Auth
Rev Fut Tax 2nd Ser B 6.00% 11/15/2029 AAA 2,000 2,197,480
New York NY C(12) 5.75% 3/15/2027 AAA 3,695 4,083,345
New York NY City Transn Fin Auth
Rev 2005 Fut Tax C 5.00% 5/1/2029 AAA 595 624,696
New York NY Ser C 5.625% 3/15/2020 AAA 845 925,875
NY New York City Muni Wtr Fin Auth
Wtr & Swr Sys Rev 5.50% 6/15/2033 AAA 3,585 3,869,936
NY New York City Muni Wtr
Fin Auth Wtr & Swr Sys Rev
Unrefunded Bal Ser B 6.00% 6/15/2033 AA+ 1,470 1,609,150
NY New York City Muni Wtr Fin
Wtr & Sew Sys Rev Ser B 6.00% 6/15/2033 AA+ 3,360 3,691,800
NY St Dorm Auth Lease Rev
Court Facs Ser A 5.50% 5/15/2020 A+ 1,180 1,296,218
NY St Dorm Auth Lease Rev St Univ
Dorm Facs Ser A 6.00% 7/1/2030 AA- 3,500 3,848,670
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
71
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
NY St Dorm Auth Lease Rev St Univ
Dorm Facs Ser A 6.25% 7/1/2020 AA- $ 1,250 $ 1,386,687
NY St Dorm Auth Rev City Univ
Sys Cons 4th Gen A 5.50% 7/1/2023 AA- 1,215 1,320,025
NY St Dorm Auth Rev Pace Univ(16) 6.00% 7/1/2029 AAA 1,610 1,770,388
NY St Dorm Auth Rev St Univ
Adl Facs Ser B(12) 5.75% 5/15/2017 AAA 395 430,262
NY St Dorm Auth Rev Upstate
Cmnty Colleges Ser A(12) 6.00% 7/1/2015 AAA 300 329,886
NY St Dorm Auth Revs Mental
Hlth Svcs B(16) 6.00% 2/15/2025 AAA 985 1,068,715
NY St Dorm Auth Revs Mental
Hlth Svcs B(16) 6.00% 2/15/2030 AAA 985 1,068,715
NY St Dorm Auth Revs Mental D(15)(16) 6.00% 8/15/2021 AAA 980 1,019,150
NY St Dorm Auth Revs St
Univ Edl Facs 5.50% 5/15/2026 AA- 75 76,671
NY St Envr Fac Corp St Clean
Wtr & Drinking 6.00% 6/15/2019 AAA 80 85,740
Puerto Rico Comwlth Aqueduct &
Swr Auth Rev ETM 10.25% 7/1/2009 AAA 500 555,275
Puerto Rico Comwlth Hwy & Transn
Auth Transn Rev Ser B(16) 5.875% 7/1/2035 AAA 750 821,063
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser B 6.50% 7/1/2027 BBB+ 2,000 2,229,820
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser D 5.25% 7/1/2038 AAA 6,000 6,478,860
Puerto Rico Comwlth Hwy
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 BBB+ 1,000 1,019,620
Puerto Rico Comwlth Pub Impt(16) 5.00% 7/1/2024 AAA 1,000 1,039,690
Puerto Rico Comwlth Pub Impt(15)(16) 5.00% 7/1/2028 AAA 1,130 1,174,850
Puerto Rico Comwlth Pub Impt 5.375% 7/1/2025 BBB 1,640 1,673,866
Puerto Rico Comwlth Pub Impt(16) 5.75% 7/1/2026 AAA 3,000 3,231,720
Puerto Rico Comwlth Pub Impt Ser A 5.375% 7/1/2028 AAA 555 599,694
Puerto Rico Pub Bldgs Auth
Rev Govt Facs Ser D GTD 5.25% 7/1/2027 A- 735 789,434
Puerto Rico Pub Fin Corp Approp E 5.50% 8/1/2029 Aaa 1,000 1,087,440
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.70% 8/1/2025 Aaa 2,000 2,143,440
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.75% 8/1/2030 Aaa 2,500 2,544,050
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
72
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
NEW YORK TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Tompkins Cnty NY Indl Dev Agy
Civic Fac Cornell Univ Lake 5.625% 7/1/2020 AA+ $ 115 $ 124,777
Tompkins Cnty NY Indl Dev Agy
Civic Fac Cornell Univ Lake 5.75% 7/1/2030 AA+ 1,500 1,634,835
---------------
TOTAL 77,275,456
---------------
SALES TAX 0.87%
NY New York City Transn Fin Auth
Fut Tax Secd Ser E 5.00% 2/1/2033 AAA 2,000 2,059,240
---------------
SPECIAL TAX 0.57%
NY New York City Transn Fin Auth Rev
Unrefunded Bal 2005 Fut B 5.00% 5/1/2029 AAA 1,310 1,347,204
---------------
TRANSPORTATION 16.76%
Metropolitan Transn Auth NY Rev
Transn Ser F 5.00% 11/15/2030 A 3,000 3,104,010
Niagara NY Frontier Auth Arpt
Buffalo Niagara Intl Ser B(16) 5.50% 4/1/2019 AAA 690 729,012
NY New York City Indl Dev Agy Spl Fac
Rev Terminal One Group Assn Pj AMT 5.50%# 1/1/2024 A3 2,000 2,102,960
NY New York City Transn Auth Met
Transn Auth Triborough 10 COP RIBs(2) 8.28% 1/1/2030 Aaa 5,000 5,868,800
NY St Twy Auth Gen Rev Ser F(2) 5.00% 1/1/2030 AAA 1,000 1,038,660
NY St Twy Auth Gen Rev Ser G(12) 5.00% 1/1/2032 AAA 10,000 10,419,900
Port Auth NY & NJ Cons 93rd Ser 6.125% 6/1/2094 AA- 7,500 8,856,000
Port Auth NY & NJ Cons 106th
Ser AMT 6.00% 7/1/2015 AA- 350 355,285
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 BBB+ 3,500 3,745,805
Puerto Rico Comwlth Hwy &
Transn Auth Rev PA 1052 RIBs RITES 7.208% 1/1/2010 AAA(a) 2,000 2,429,360
Puerto Rico Comwlth Hwy &
Transn Auth Sub PR St Infra 5.00% 7/1/2028 BBB 1,000 1,011,720
---------------
TOTAL 39,661,512
---------------
WATER/SEWER 2.22%
NY New York City Muni Fin Auth
Wtr & Swr Sys Rev Ref Ser C 4.75% 6/15/2033 AA+ 3,000 3,026,370
NY St Envr Fac Corp St Clean
Wtr & Drinking 6.00% 6/15/2019 AAA 1,420 1,517,909
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
73
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
NEW YORK TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Upper Mohawk NY Regl Wtr Fin
Auth NY Wtr Sys Rev(2) 5.75% 4/1/2020 Aaa $ 650 $ 701,597
---------------
TOTAL 5,245,876
---------------
TOTAL MUNICIPAL BONDS (cost $223,409,585) 234,302,675
===============
<Caption>
SHARES
(000)
----------
SHORT-TERM INVESTMENT 0.00%
MONEY MARKET MUTUAL FUND 0.00%
Dreyfus NY Municipal Cash Management (cost $4,135) 4 4,135
===============
TOTAL INVESTMENTS IN SECURITIES 99.03% (cost $223,413,720) 234,306,810
===============
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES 0.97% 2,290,379
---------------
NET ASSETS 100.00% $ 236,597,189
===============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
TEXAS TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
----------
MUNICIPAL BONDS 100.39%
EDUCATION 9.36%
Fort Bend TX Indpt Sch Dist
Ref Ser A PSF GTD 5.25% 8/15/2027 AAA $ 500 532,675
Lake Worth TX Indpt Sch Dist
Sch Bldg Ser A(2) 5.25% 2/15/2031 AAA 1,020 1,079,160
Lehigh Cnty PA Gen Purp
Auth Revs College-Cedar
Crest College(17) 4.625% 4/1/2036 AA 150 145,155
Raven Hills TX Higher Ed Corp
Cardinal Vlg LLC Lamar Univ(16) 5.50% 8/1/2028 Aaa 1,000 1,080,500
Rockwall TX Indpt Sch Dist
Sch Bldg PSF GTD 5.25% 2/15/2029 AAA 2,000 2,110,540
Univ TX Univ Revs Fin Sys Ser B 5.00% 8/15/2033 AAA 1,400 1,440,726
Univ Houston TX Univ Revs Ref Cons(2) 5.00% 2/15/2025 AAA 1,000 1,045,080
---------------
TOTAL 7,433,836
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
74
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
TEXAS TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION 28.15%
Aledo TX Indpt Sch Dist Sch
Bldg Ser A PSF GTD 5.125% 2/15/2033 AAA $ 1,000 $ 1,041,490
Argyle TX Indpt Sch Dist Ref(12) 5.25% 8/15/2040 AAA 1,000 1,056,720
Comal TX Indpt Sch Dist Ref
Ser A PSF GTD 5.00% 2/1/2028 Aaa 1,000 1,032,590
Dallas Cnty TX Ref & Impt Ser A 5.00% 8/15/2020 AAA 250 261,208
Dallas TX Indpt Sch Dist Ref
PSF GTD 5.00% 2/15/2021 AAA 300 312,657
Dickinson TX Indpt Dist PSF GTD(c) 5.00% 2/15/2026 AAA 1,000 1,044,270
El Paso Cnty TX Hosp Dist
Ctfs Oblig(2) 5.00% 8/15/2030 AAA 1,000 1,030,860
Lubbock TX Ref Wtr Wks Sys Surplus(12) 5.00% 2/15/2018 AAA 1,000 1,058,630
Mansfield TX Indpt Sch Dist PSF GTD 5.25% 2/15/2023 AAA 1,000 1,052,420
Mission Cons Indpt Sch Dist TX PSF GTD 5.00% 2/15/2028 AAA 1,000 1,036,150
Pflugerville TX Indpt Sch
Dist PSF GTD 5.00% 8/15/2026 AAA 1,000 1,036,050
Puerto Rico Comwlth Ser PMD-8 RIBs(16) 8.03% 7/1/2026 Aaa 500 577,240
Puerto Rico Comwlth Unrefunded
Bal Pub Impt Ser A 5.125% 7/1/2031 BBB 745 759,498
Puerto Rico Muni Fin Agy Ser A 5.25% 8/1/2025 BBB 1,000 1,046,440
Snyder TX Indpt Sch Dist Sch Bldg(2) 5.25% 2/15/2030 AAA 500 529,750
Socorro TX Indpt Sch Dist
Ser A PSF GTD 5.00% 8/15/2027 AAA 1,150 1,196,149
Socorro TX Indpt Sch Dist
Unrefunded Bal PSF GTD 6.00% 2/15/2015 AAA 35 35,701
TX St Ser B RIBs 9.226% 9/30/2011 Aa1 5,500 6,666,550
United Indpt Sch Dist TX PSF GTD 5.125% 8/15/2026 AAA 1,000 1,046,000
Webster TX Bal Cfts Oblig Ser A(12) 6.00% 3/1/2017 AAA 500 539,745
---------------
TOTAL 22,360,118
---------------
HEALTHCARE 1.59%
Puerto Rico Indl Tourist Edl
Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2025 AA 910 1,005,104
Richardson TX Hosp Auth Hosp
Ref & Impt Baylor/Richardson 5.625% 12/1/2028 BBB 250 258,093
---------------
TOTAL 1,263,197
---------------
INDUSTRIAL 14.04%
Cass Cnty TX Ind Dev Corp
Envr Impt Rev Ser A AMT 6.00% 9/1/2025 BBB 1,000 1,044,160
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
75
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
TEXAS TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Orange Cnty TX Nav & Port
Dist Indl Dev Corp Rev North Star
Steel TX Pj 6.375% 2/1/2017 A+ $ 2,400 $ 2,454,312
Texas City TX Indl Dev Corp
Marine Term Rev Arco Pipe Line 7.375% 10/1/2020 AA+ 5,500 7,114,855
TSASC Inc NY Ser 1 5.00% 6/1/2026 BBB 550 543,768
---------------
TOTAL 11,157,095
---------------
LEASE 1.33%
Harris Cnty Houston TX Sports
Auth Rev Sr Lien Ser G(16) 5.25% 11/15/2021 AAA 1,000 1,056,560
---------------
POWER 0.47%
Brazos River Auth TX Pollutn Ctrl
Rev TXU Energy Co LLC Pj AMT 5.00% 3/1/2041 Baa2 375 373,140
---------------
PRE-REFUNDED 34.99%
Blanco TX Ctfs Oblig(19) 5.50% 8/15/2027 AAA 665 726,353
Fort Bend Cnty TX Muni Util
Dist No 25(16) 6.00% 10/1/2028 AAA 2,170 2,246,427
Gregory Portland TX Indpt Sch
Dist PSF GTD 5.50% 8/15/2020 AAA 1,075 1,151,777
Harris Cnty TX Hlth Fac Dev
St Lukes Episcopal Hosp Ser A 5.375% 2/15/2026 AA- 1,000 1,074,690
Harris Cnty TX Hlth Facs
Dev Corp Hosp Rev Mem
Hermann Hlthcare Ser A 6.375% 6/1/2029 A 1,750 1,976,117
Houston TX Higher Ed Fin Corp
Higher Ed Rev Rice Univ Pj Ser A 5.375% 11/15/2029 AAA 1,000 1,066,600
Katy TX Indpt Sch Dist Ltd
Tax PSF GTD 6.125% 2/15/2032 AAA 1,000 1,067,170
Laredo TX Indpt Sch Dist PSF GTD 5.25% 8/1/2024 AAA 1,000 1,049,580
Muni Secs Trust Ctfs Ser 7005
Cl B ETM RIBs+ 7.144% 10/1/2040 Aaa 500 571,150
Pearland TX Indpt Sch Dist Bd
Ser A PSF GTD 5.875% 2/15/2019 AAA 1,000 1,094,970
Pearland TX Indpt Sch Dist PSF GTD 5.125% 2/15/2022 AAA 1,500 1,560,360
Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 AAA 380 406,114
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.00% 7/1/2031 BBB+ 1,980 2,169,070
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser C 6.00% 7/1/2029 AAA 1,000 1,095,490
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
76
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
TEXAS TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
San Antonio TX Indpt Sch Dist
PSF GTD 5.50% 8/15/2024 AAA $ 1,000 $ 1,057,970
San Antonio TX Indpt Sch Dist
PSF GTD 5.75% 8/15/2015 AAA 1,000 1,065,810
Socorro TX Indpt Sch Dist PSF GTD 6.00% 2/15/2015 AAA 885 903,187
Univ TX Univ Rev Fin Sys Ser A 5.375% 8/15/2017 AAA 3,030 3,193,771
Upper Trinity Regl Wtr Dist
TX Wtr Rev Sys Ser 4(11) 6.00% 8/1/2026 AAA 3,025 3,299,095
Webster TX Ctfs Oblig Ser A(12) 6.00% 3/1/2017 AAA 940 1,018,979
---------------
TOTAL 27,794,680
---------------
RESOURCE RECOVERY 2.01%
Gulf Coast Waste Disp Auth TX
Swr & Solid Waste Disp Rev AMT 5.90% 4/1/2036 A+ 1,500 1,596,225
---------------
TRANSPORTATION 3.59%
Dallas Fort Worth TX Intl
Arpt Impt Jnt Ser B AMT(12) 5.00% 11/1/2035 AAA 1,000 1,007,760
Houston TX Arpt Sys Rev Sub
Lien Ser B(12) 5.50% 7/1/2030 AAA 1,000 1,055,890
NY New York City Indl Dev Agy
Spl Fac Rev Terminal One Group
Assn Pj AMT 5.50%# 1/1/2024 A3 750 788,610
---------------
TOTAL 2,852,260
---------------
WATER/SEWER 4.86%
Brazos River Auth TX Wtr Rev
Supply Sys Ser A AMT(16) 5.00% 2/15/2028 AAA 1,000 1,002,960
Dallas TX Wtr Wks & Swr Sys Rev 5.00% 10/1/2012 AA+ 750 781,140
El Paso TX Wtr & Swr Rev Ref &
Impt Ser A(12) 5.25% 3/1/2027 AAA 1,000 1,046,920
San Antonio TX Wtr Rev Ref Sys(12) 5.00% 5/15/2028 AAA 1,000 1,028,560
---------------
TOTAL 3,859,580
---------------
TOTAL MUNICIPAL BONDS (cost $74,474,808) 79,746,691
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
77
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
TEXAS TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING:
INTEREST MATURITY S&P OR SHARES
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT 0.01%
MONEY MARKET MUTUAL FUND 0.01%
Dreyfus Municipal Cash Management Plus (cost $5,129) 5 $ 5,129
===============
TOTAL INVESTMENTS IN SECURITIES 100.40% (cost $74,479,937) 79,751,820
===============
LIABILITIES IN EXCESS OF OTHER ASSETS (0.40%) (318,015)
---------------
NET ASSETS 100.00% $ 79,433,805
===============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
WASHINGTON TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
----------
MUNICIPAL BONDS 99.04%
EDUCATION 15.46%
Central WA Univ Sys Rev(11) 5.00% 5/1/2034 Aaa $ 1,000 1,031,450
Seattle WA Museum Dev Auth
Spl Oblig GTD 5.125% 4/1/2031 AAA 1,000 1,052,580
Univ WA Ed Resh Rev
Roosevelt Pj(15)(16) 5.375% 6/1/2029 AAA 1,100 1,145,023
WA St Higher Ed Fac Auth Rev
Gonzaga Univ Pj(16) 4.75% 4/1/2022 AAA 1,000 1,007,730
WA St Higher Ed Fac Gonzaga
Univ Pj(16) 5.125% 4/1/2034 AAA 2,080 2,173,870
Western WA Univ Rev
Unrefunded Bal Student Rec Fee(16) 5.00% 5/1/2033 AAA 630 645,882
---------------
TOTAL 7,056,535
---------------
GENERAL OBLIGATION 21.35%
Bremerton WA(2) 5.25% 12/1/2027 Aaa 1,440 1,514,966
King Cnty WA Pub Transn Sales Tax(16) 5.375% 6/1/2029 AAA 1,000 1,074,660
King Cnty WA Sch Dist No 405
Bellevue(11) 5.00% 12/1/2020 AAA 2,000 2,091,960
King Cnty WA Ser B 4.50% 1/1/2024 AAA 320 319,990
King Cnty WA Ser B(16) 5.00% 1/1/2030 AAA 1,000 1,018,300
Port Seattle WA Ser B AMT 5.75% 12/1/2025 AAA 750 791,513
Puerto Rico Pub Fin Corp
Comwlth App Ser A(2) 5.125% 6/1/2024 AAA 750 826,740
Skagit Cnty WA Pub Hosp
Dist No 002(16) 5.25% 12/1/2026 Aaa $ 1,000 1,056,150
WA St Var Purp Ser C 5.25% 1/1/2017 Aa1 1,000 1,055,620
---------------
TOTAL 9,749,899
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
78
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
WASHINGTON TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE 4.10%
Puerto Rico Indl Tourist Edl &
Envr Ctrl Fac Hosp Ser A 6.125% 11/15/2030 AA 1,000 $ 1,101,390
Skagit Cnty WA Pub Hosp
Dist No 1 Rev Skagit Vly Hosp 5.50% 12/1/2030 Baa3 750 770,865
---------------
TOTAL 1,872,255
---------------
HOUSING 1.66%
Skagit Cnty WA Hsg Auth Low
Income Hsg Assist Rev Mtg Ln(13) 7.00% 6/20/2035 AAA 735 755,095
---------------
INDUSTRIAL 0.67%
Tob Settlmnt Auth WA
Tob Settlmnt Asset Bkd 6.50% 6/1/2026 BBB 280 305,684
---------------
MISCELLANEOUS 7.16%
Bellevue WA Convtn Ctr Auth
Spl Oblig Rev(16) Zero Coupon 2/1/2024 AAA 1,400 610,652
Puerto Rico Convention Ctr
Dist Auth Hotel Occupancy
Tax Ser A(5) 4.50% 7/1/2036 AAA 500 487,855
Puerto Rico Pub Bldg Auth
Rev Govt Facs Ser I GTD 5.375% 7/1/2034 BBB 1,000 1,058,200
Spokane WA Pub Fac Dist Hotel
Motel & Sales Use Tax(16) 5.75% 12/1/2028 AAA 1,000 1,113,670
---------------
TOTAL 3,270,377
---------------
POWER 12.47%
Chelan Cnty WA Pub Util
Dist No 1 Cons Rev Ser A AMT(16) 6.40% 7/1/2017 AAA 1,000 1,048,070
Clark Cnty WA Pub Util
Dist No 1 Rev(12) 5.125% 1/1/2020 AAA 400 415,896
Douglas Cnty WA Pub Util
Dist No 1 Wells Hydro 8.75% 9/1/2018 AA 350 377,787
Douglas Cnty WA Pub Util
Dist No 1 Wells Hydro 2 Tier Ser B(2) 8.75% 9/1/2006 AAA 485 494,928
Energy Northwest WA Elec Rev
Ref Pj 3 Ser A 5.00% 7/1/2014 Aaa 750 797,280
Grant Cnty WA Pub Util
Dist No 2 Elec Rev Ser H(12) 5.00% 1/1/2022 AAA $ 1,000 1,008,900
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN 5.125% 7/1/2029 A3 1,500 1,551,645
---------------
TOTAL 5,694,506
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
WASHINGTON TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
PRE-REFUNDED 19.42%
Douglas Cnty WA Pub Util
Dist No 1 Wells Hydro 8.75% 9/1/2018 AA 150 $ 162,039
King Cnty WA Sch Dist No 414
Lake Washington(6)(12) 5.50% 12/1/2019 AAA 1,000 1,075,840
Muni Secs Trust Ctfs Ser 7005
Cl B ETM RIBs+ 7.144% 10/1/2040 Aaa 1,000 1,142,300
Ocean Shores WA Wtr & Swr(12) 5.50% 12/1/2021 Aaa 1,000 1,082,750
Port Seattle WA Spl Fac Rev
Ser C AMT(16) 6.00% 9/1/2029 AAA 915 994,587
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.00% 7/1/2031 BBB+ 1,000 1,095,490
Univ WA Univ Revs Student
Facs Fee(12) 5.50% 6/1/2019 AAA 810 873,569
Vancouver WA Ltd Tax(2) 5.50% 12/1/2025 AAA 1,255 1,350,179
Vancouver WA Wtr & Swr Rev(11) 6.00% 6/1/2020 AAA 1,000 1,070,010
Western WA Univ Rev Student
Rec Fee(16) 5.00% 5/1/2033 AAA 20 21,279
---------------
TOTAL 8,868,043
---------------
TRANSPORTATION 14.26%
Central Puget Sound WA Regl
Transit Auth Sales Tax & Motor(11) 5.25% 2/1/2021 AAA 1,750 1,922,095
Port Kalama WA Rev Ser B AMT 5.625% 12/1/2015 A3 400 403,392
Port Seattle WA Spl Fac Rev
Unrefunded Bal Ser C AMT(16) 6.00% 9/1/2029 AAA 1,085 1,161,829
Port Tacoma WA Ser A(2) 5.25% 12/1/2034 AAA 2,000 2,112,300
Puerto Rico Comwlth Hwy & Transn
Auth Rev PA 1052 RIBs RITES 7.208% 1/1/2010 AAA(a) 750 911,010
---------------
TOTAL 6,510,626
---------------
WATER/SEWER 2.49%
Pierce Cnty WA Swr Rev(2) 5.00% 8/1/2021 AAA 1,100 1,137,807
---------------
TOTAL MUNICIPAL BONDS (cost $42,506,780) 45,220,827
===============
<Caption>
SHARES
(000)
----------
SHORT-TERM INVESTMENT 0.00%
MONEY MARKET MUTUAL FUND 0.00%
Dreyfus Municipal Cash Management Plus (cost $1,327) 1 1,327
===============
TOTAL INVESTMENTS IN SECURITIES 99.04% (cost $42,508,107) 45,222,154
===============
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES 0.96% 439,171
---------------
NET ASSETS 100.00% $ 45,661,325
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
80
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
INSURED INTERMEDIATE TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 98.44%
EDUCATION 9.47%
Allegheny Cnty PA Higher Ed
Duquesne Univ Ser A(11) 5.00% 3/1/2013 AAA $ 150 $ 160,273
Appalachian St Univ NC Rev
Ref Util Sys(16) 5.00% 5/15/2010 AAA 100 105,341
Clark Cnty NV Sch Dist Ref Ser A(16) 5.00% 6/15/2014 AAA 300 320,985
Delaware Cnty PA Auth Univ
Rev Ref Villanova Univ(11) 5.00% 8/1/2010 AAA 200 210,368
Univ TX Univ Rev Fin Sys Ser D 5.25% 8/15/2016 AAA 350 376,947
---------------
TOTAL 1,173,914
---------------
GENERAL OBLIGATION 32.79%
Anaheim CA Unif High Sch Dist(12) 5.00% 8/1/2015 Aaa 200 215,748
Austin TX Indpt Sch Dist Ref
PSF GTD 5.25% 8/1/2015 AAA 250 272,478
Davie Cnty NC Sch(2) 4.00% 5/1/2012 AAA 200 203,014
Erie Cnty NY Pub Impt Ser A(16) 5.00% 12/1/2008 AAA 250 258,647
Hemet CA Univ Sch Dist 2002 Election
Ser C(16) 5.00% 8/1/2011 AAA 200 213,442
Jersey City NJ Ref Pub Impt Ser A(16) 5.25% 9/1/2015 AAA 250 270,073
NC St Ref Ser A 5.00% 6/1/2010 AAA 150 157,794
NJ St Ref Ser L(2) 5.25% 7/15/2013 AAA 300 324,837
OK St Ref Bldg Ser A(11) 5.00% 7/15/2014 AAA 200 213,674
PA St Ref 2nd Ser(11) 5.00% 10/1/2009 AAA 500 522,255
Pasadena CA Sch Dist Ser A Ref(11) 5.00% 11/1/2015 AAA 250 270,125
Rockford MI Pub Schs Ref(16) 5.00% 5/1/2010 AAA 250 262,755
Salem Keizer OR Sch Dist No 24J(12) 5.00% 6/15/2011 AAA 200 211,980
St Louis Park MN Indpt Sch
Dist No 283 Ref Sch Bldg Ser B(12) 5.00% 2/1/2015 Aaa 300 318,927
Tantasqua MA Regl Sch Dist(12) 4.50% 10/1/2013 Aaa 235 243,615
Wayne Cnty MI Cmnty College Impt(11) 5.25% 7/1/2010 Aaa 100 106,064
---------------
TOTAL 4,065,428
---------------
LEASE 8.76%
CA St Pub Wks Bd Dept Hlth Svcs
Richmond Lab B(19) 5.00% 11/1/2017 AAA 315 333,919
CO St Dept Corrections
CO St Penitentiary II Pj B COP(2) 5.00% 3/1/2016 AAA 250 266,060
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
81
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
INSURED INTERMEDIATE TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Kansas City MO Sch Dist Bldg
Ref Elem Sch Pj Ser B(11) 5.00% 2/1/2012 Aaa $ 100 $ 106,371
New York City NY Edl
Constr Fd Rev Ser A(16) 5.00% 4/1/2008 AAA 150 154,025
OH St Bldg Auth Ref St Facs
Adult Correction A(12) 5.50% 10/1/2010 AAA 210 225,143
---------------
TOTAL 1,085,518
---------------
MISCELLANEOUS 7.69%
CA St Econ Recovery Ser A(11) 5.25% 7/1/2014 AAA 200 218,120
IL St Sales Tax Rev First Ser(12) 5.25% 6/15/2013 AAA 100 108,001
MI St Envr Ref(15)(16) 5.50% 12/1/2013 AAA 100 110,427
Miami-Dade Cnty FL Spl Oblig
Fltg Rate Cap Asset Acq Ser A RIBs(11) 3.676% 4/1/2014 AAA 200 200,000
MO Dev Fin Bd Cultural Facs
Nelson Gallery(16) 5.25% 12/1/2013 AAA 100 107,207
OR St Dept Admin Svcs(12) 5.00% 9/1/2012 AAA 100 106,645
WI St Petroleum Inspect Fee Rev Ser 1(12) 5.00% 7/1/2008 AAA 100 102,937
---------------
TOTAL 953,337
---------------
POWER 11.16%
Houston TX Util Sys Rev Ref
Combined First Lien(12) 5.00% 11/15/2016 AAA 250 268,745
Houston TX Util Sys Rev Ref
Combustibles First Lien Ser A(16) 5.00% 5/15/2009 AAA 200 207,866
MI Pub Pwr Agy Rev Ref Belle
River Pj Ser A(16) 5.25% 1/1/2016 AAA 250 272,458
Puerto Rico Elec Pwr Auth Ref
Ref Ser JJ(16) 5.25% 7/1/2013 AAA 100 108,502
South MN Muni Pwr Agy Supply
Rev Ser A(16) 5.00% 1/1/2010 AAA 250 261,505
UT St Muni Pwr Agy Elec Sys Rev Ser A(2) 5.00% 7/1/2011 Aaa 250 264,480
---------------
TOTAL 1,383,556
---------------
PRE-REFUNDED 4.71%
Muhlenberg PA Sch Dist(11) 5.40% 9/1/2012 AAA 100 106,807
Muncy PA Sch Dist(11) 5.00% 5/15/2020 Aaa 250 265,410
NY St Dorm Auth Revs Mental D(15)(16) 5.25% 8/15/2024 AAA 200 212,124
---------------
TOTAL 584,341
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
82
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
INSURED INTERMEDIATE TAX-FREE FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
SPECIAL TAX 2.04%
Broward Cnty FL Spl Oblig(2) 5.00% 1/1/2012 AAA $ 250 $ 252,882
---------------
TRANSPORTATION 7.41%
KS St Tpk Auth Tpk Rev Ref Ser A(2) 5.00% 9/1/2008 AAA 250 257,812
MA St Port Auth Rev Ser C(2) 5.00% 7/1/2011 AAA 200 211,584
New Haven CT Air Rights Pkg Ref(2) 5.375% 12/1/2012 AAA 100 108,935
PA St Tpk Commn Oil Sr Ser A(16) 5.25% 12/1/2012 AAA 100 108,329
Washington DC Met Area Transn
Auth Gross Rev Ref(16) 5.00% 1/1/2007 AAA 230 232,399
---------------
TOTAL 919,059
---------------
WATER/SEWER 14.41%
Columbus GA Wtr & Sew Rev Ref(12) 5.25% 5/1/2013 AAA 100 108,271
Lansing MI Sew Disp Sys Ref(11) 5.00% 5/1/2014 AAA 150 160,899
Las Cruces NM Jt Util Ref & Impt Rev
Ser A(16) 5.50% 7/1/2016 AAA 300 312,531
Meadville PA Area Wtr Auth Wtr Rev(12) 5.00% 7/1/2008 AAA 300 309,135
Miami-Dade Cnty FL Wtr & Swr
Rev Ref(16) 5.00% 10/1/2007 AAA 250 255,102
Phoenix AZ Civic Impt Corp Wtr Sys
Rev Jr Lien(16) 5.00% 7/1/2016 AAA 300 320,811
Pima Cnty AZ Swr Rev(12) 5.00% 7/1/2014 AAA 200 214,054
Shreveport LA Wtr & Swr Rev
Ref Ser A(11) 5.00% 12/1/2012 AAA 100 106,208
---------------
TOTAL 1,787,011
---------------
TOTAL MUNICIPAL BONDS (cost $12,309,907) 12,205,046
===============
<Caption>
SHARES
(000)
----------
SHORT-TERM INVESTMENT 0.01%
MONEY MARKET MUTUAL FUND 0.01%
Dreyfus Municipal Cash Management Plus (cost $872) 1 872
===============
TOTAL INVESTMENTS IN SECURITIES 98.45% (cost $12,310,779) 12,205,918
===============
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES 1.55% 192,070
---------------
NET ASSETS 100.00% $ 12,397,988
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
83
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
FLORIDA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 98.80%
EDUCATION 4.46%
Miami-Dade Cnty FL Edl Facs
Auth Rev Ser A(2) 6.00% 4/1/2023 AAA $ 2,000 $ 2,175,540
Volusia Cnty FL Sch Bd Ser A COP(12) 5.00% 8/1/2026 Aaa 1,000 1,035,350
---------------
TOTAL 3,210,890
---------------
GENERAL OBLIGATION 7.77%
Hillsborough Cnty FL Sch Bd COP(16) 5.00% 7/1/2029 AAA 1,000 1,033,030
Puerto Rico Comwlth Ser 8 RIBs(16) 8.03% 7/1/2026 Aaa 3,500 4,040,680
Puerto Rico Muni Fin Agy Ser A 5.25% 8/1/2025 BBB 500 523,220
---------------
TOTAL 5,596,930
---------------
HEALTHCARE 11.06%
Brevard Cnty FL Hlth Facs Auth
Hlthcare Facs Rev Hlth First Inc Pj 5.00% 4/1/2034 A 1,000 1,014,920
Highlands Cnty FL Facs Auth
Rev Hosp Adventist Hlth Sys D 5.875% 11/15/2029 A+ 2,000 2,142,200
Miami FL Hlth Facs Auth
Catholic Hlth East Ser B 5.25% 11/15/2033 A1 225 231,813
Orange Cnty FL Hlth Facs Auth Rev
Hosp Orlando Regl Hlthcare B 4.75% 11/15/2036 A 1,000 973,200
Orange Cnty FL Hlth Facs Auth
Rev Nemours Foundation Pj 5.00% 1/1/2035 AAA 1,000 1,033,540
Puerto Rico Indl Tourist Edls
Med Envr Ctrl Facs Hosp 6.50% 11/15/2020 AA 410 459,105
Sarasota Cnty FL Pub Hosp Bd
Rev Sarasota Mem Hosp Ser B(16) 5.50% 7/1/2028 AAA 1,875 2,108,269
---------------
TOTAL 7,963,047
---------------
HOUSING 4.96%
FL Hsg Fin Corp Rev
Hmownr Mtg Ser 1 AMT(8)(14) 4.70% 7/1/2026 AA 1,000 988,860
Lee Cnty FL Hsg Fin Auth Sing
Fam Mtg Rev AMT(8)(14) 6.40% 3/1/2029 Aaa 505 514,125
Orange Cnty FL Hsg Fin Auth Hmowner
Rev Cap App Ser A-1 AMT(14) Zero Coupon 3/1/2028 Aaa 315 94,547
Pinellas Cnty FL Hsg Fin Auth Hsg
Rev Multi Cnty Pg Ser A-1 AMT(14) 5.50% 9/1/2035 Aaa 1,880 1,973,211
---------------
TOTAL 3,570,743
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
84
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
FLORIDA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL 2.57%
Lee Cnty FL Ind Dev Auth Ref
Bonita Springs Util Pj AMT(2) 5.125% 11/1/2019 AAA $ 1,250 $ 1,305,613
TSASC Inc NY Ser 1 5.00% 6/1/2026 BBB 550 543,768
---------------
TOTAL 1,849,381
---------------
LEASE 1.44%
UCF Assn Inc FL Ser A COP(11) 5.00% 10/1/2027 AAA 1,000 1,034,360
---------------
MISCELLANEOUS 18.98%
Jacksonville FL Excise Taxes
Ref Ser C AMT(16) 5.25% 10/1/2020 AAA 1,000 1,056,990
Jacksonville FL Sales Tax Rev
Ref & Impt Loc Govt(11) 5.375% 10/1/2018 AAA 1,000 1,073,760
Miami-Dade Cnty FL Spl Oblig Fltg
Rate Cap Asset Acq Ser A RIBs(11) 3.676% 4/1/2014 AAA 1,500 1,500,000
Miami-Dade Cnty FL Spl Oblig
Sub Ser A(16) Zero Coupon 10/1/2024 AAA 3,000 1,128,900
Miami-Dade Cnty FL Spl Oblig
Sub Ser B(16) 5.00% 10/1/2037 AAA 1,000 1,019,890
Orange Cnty FL Sales Tax Rev
Ref Ser B(11) 5.125% 1/1/2032 AAA 1,425 1,487,971
Orange Cnty FL Tourist Dev Sub(2) 5.125% 10/1/2025 AAA 1,445 1,522,943
Osceola Cnty Tourist Dev Tax
Rev Ser A(11) 5.00% 10/1/2032 AAA 1,400 1,443,778
Puerto Rico Pub Bldgs Auth
Rev Govt Facs Ser I GTD 5.25% 7/1/2033 BBB 1,250 1,299,025
Seminole Cnty FL Sales Tax Rev Ser A(16) 5.00% 10/1/2031 AAA 1,000 1,042,190
Tampa FL Sports Auth Rev
Tampa Bay Arena Pj(16) 6.00% 10/1/2015 AAA 450 503,757
West Palm Beach FL Cmnty Cnty Redev
Agy Northwood-Pleasant Cmnty Redev 5.00% 3/1/2029 A 575 584,407
---------------
TOTAL 13,663,611
---------------
POWER 1.39%
JEA FL Elec Sys Rev Ser 3 2005 B(12) 4.75% 10/1/2033 AAA 1,000 1,002,880
---------------
PRE-REFUNDED 26.80%
Boca Raton FL Ref 5.25% 7/1/2016 AAA 1,615 1,707,540
Boca Raton FL Ref 5.25% 7/1/2017 AAA 1,000 1,057,300
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
85
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
FLORIDA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
FL St Bd of Ed Pub
Ed Cap Outlay Ser E 5.625% 6/1/2025 AAA $ 1,000 $ 1,083,260
FL St Bd of Ed Pub Ed Cap
Outlay Ser A 5.25% 6/1/2024 AAA 2,000 2,137,860
Highlands Cnty FL Hlth Facs Auth
Rev Hosp Adventist/Sunbelt Ser A 6.00% 11/15/2031 A+ 2,000 2,154,520
Miami-Dade Cnty FL Expwy Auth
Toll Sys Rev(11) 6.375% 7/1/2029 AAA 1,250 1,390,163
Muni Secs Trust Ctfs Ser 7005
Cl B ETM RIBs+ 7.144% 10/1/2040 Aaa 1,250 1,427,875
Orange Cnty FL Hlth Facs Auth
Rev Hosp Orlando Regl Hlthcare 5.75% 12/1/2032 A 1,000 1,107,470
Orange Cnty FL Tourist Dev
Tax Rev ETM(2) 6.00% 10/1/2016 AAA 710 720,465
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.00% 7/1/2031 BBB+ 1,000 1,095,490
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser B 6.50% 7/1/2027 BBB+ 1,000 1,114,910
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser C 6.00% 7/1/2029 AAA 880 964,031
Tampa Bay Wtr FL Util Sys Rev(11) 6.00% 10/1/2024 AAA 3,000 3,328,890
---------------
TOTAL 19,289,774
---------------
RESOURCE RECOVERY 1.06%
Jacksonville FL Pollutn Rev
Anheuser-Busch Pj 5.70% 8/1/2031 A+ 750 761,070
---------------
TRANSPORTATION 7.64%
FL Ports Fin Commn Rev St Transn
Tr Fd Intermodal Pg AMT(11) 5.50% 10/1/2029 AAA 1,295 1,345,764
Miami-Dade Cnty FL Aviation
Rev Miami Intl Arpt Ser A AMT(19) 5.00% 10/1/2037 AAA 2,000 2,040,900
Miami-Dade Cnty FL Expwy Auth
Toll Sys Rev Ref(11) 5.125% 7/1/2025 Aaa 750 785,587
Pensacola FL Arpt Rev Ser A AMT(16) 6.125% 10/1/2018 AAA 1,250 1,325,788
---------------
TOTAL 5,498,039
---------------
WATER/SEWER 10.67%
Melbourne FL Wtr & Swr Rev
Ref & Impt Ser A(11) 5.00% 10/1/2032 AAA 1,000 1,031,270
Miami Beach FL Stormwater Rev(11) 5.25% 9/1/2020 AAA 1,000 1,060,890
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
86
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
FLORIDA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Miami Beach FL Wtr & Swr Rev(2) 5.25% 9/1/2020 AAA $ 1,000 $ 1,060,890
Miami Beach FL Wtr & Swr Rev(2) 5.50% 9/1/2027 AAA 1,000 1,059,660
Miami-Dade Cnty FL Stormwater
Util Rev(16) 5.00% 4/1/2027 Aaa 1,000 1,040,380
Ocala FL Wtr & Swr Rev(11) 5.25% 10/1/2027 Aaa 800 850,800
Peace River/Manasota Regl Wtr Supply
Auth FL Rev Util Sys Ser B(12) 5.00% 10/1/2024 AAA 1,000 1,044,550
Sebring FL Wtr & Wastewtr Rev Ref(11) 5.25% 1/1/2020 AAA 500 535,045
---------------
TOTAL 7,683,485
---------------
TOTAL MUNICIPAL BONDS (cost $66,927,903) 71,124,210
===============
<Caption>
SHARES
(000)
----------
SHORT-TERM INVESTMENT 0.00%
MONEY MARKET MUTUAL FUND 0.00%
Dreyfus FL Muni Cash Management (cost $2,834) 3 2,834
===============
TOTAL INVESTMENTS IN SECURITIES 98.80% (cost $66,930,737) 71,127,044
===============
OTHER ASSETS IN EXCESS OF LIABILITIES 1.20% 860,483
---------------
NET ASSETS 100.00% $ 71,987,527
===============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
GEORGIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000)
----------
MUNICIPAL BONDS 98.01%
EDUCATION 22.25%
Albany-Dougherty GA Inner City Auth
Rev Albany St Univ Student Hsg A(19) 5.00% 7/1/2031 AAA $ 2,000 2,059,520
Americus-Sumter GA Payroll Dev Auth
Rev GSW Fndtn Student Hsg Pj(5) 5.00% 6/1/2036 AAA 2,285 2,356,475
Athens-Clarke Cnty GA Univ
Govt UGA Rev CCRC Bldg LLC Pj(2) 5.00% 12/15/2032 AAA 1,050 1,084,282
Athens GA Hsg Auth Student
Hsg Univ of GA East Campus(2) 5.00% 12/1/2027 Aaa 2,000 2,070,800
Athens GA Hsg Auth Student
Hsg Univ of GA East Campus(2) 5.25% 12/1/2023 Aaa 775 824,088
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Atlanta GA Dev Auth Rev Tuff
ATDC Pj Ser C 4.625% 1/1/2035 A3 $ 1,000 $ 947,450
Bulloch Cnty GA Dev Auth GA
South Univ Pj(2) 5.00% 8/1/2021 Aaa 400 416,680
Cobb Cnty GA Dev Auth Pkg Rev
Kennesaw St Univ Fdtn Inc Pj(16) 5.00% 7/15/2029 Aaa 1,250 1,302,363
Cobb Cnty GA Dev Auth Rev KSU
Town Point Real Estate A(5) 5.00% 7/15/2026 AAA 500 518,275
Fulton Cnty GA Dev Auth Rev
GA Tech Athletic Assoc(2) 5.50% 10/1/2017 AAA 1,000 1,089,170
Fulton Cnty GA Dev Auth Rev
GA Tech Fndtn Fdg Ser A 5.00% 11/1/2031 AA+ 1,400 1,442,028
Fulton Cnty GA Dev Auth Rev
GA Tech Fndtn Sac II Pj Ser A 5.125% 11/1/2021 AA+ 750 792,135
Fulton Cnty GA Dev Auth Rev
Molecular Science Bldg Pj(16) 5.00% 5/1/2034 AAA 2,000 2,080,720
Fulton Cnty GA Dev Auth Rev
Morehouse College Pj(2) 5.875% 12/1/2030 AAA 1,850 2,011,283
Fulton Cnty GA Dev Auth Rev
Tuff Morehouse Pj Ser A(2) 5.50% 2/1/2022 AAA 1,000 1,081,480
Marietta GA Dev Auth Rev Ser
Student Hsg SPSU Student Hsg I 5.125% 9/15/2023 A2 1,000 1,042,010
Private Colleges & Univs Auth
GA Rev Mercer Univ Pj 5.75% 10/1/2031 Baa2 500 531,845
Private Colleges & Univs Auth GA Rev
Spelman College 5.25% 6/1/2021 Aa3 1,340 1,426,953
Richmond Cnty GA Dev Auth Edl Facs
Rev ASU Jaguar Student Ctr Ser A(19) 5.00% 7/1/2034 Aaa 1,000 1,038,150
---------------
TOTAL 24,115,707
---------------
GENERAL OBLIGATION 3.19%
GA St Ser F 5.00% 11/1/2018 AAA 1,000 1,062,010
Puerto Rico Comwlth Pub Impt Ser A 5.25% 7/1/2024 BBB 500 520,095
Puerto Rico Comwlth Unrefunded
Bal Pub Impt Ser A 5.125% 7/1/2031 BBB 665 677,941
Puerto Rico Comwlth Unrefunded
Bal Pub Impt Ser A 5.375% 7/1/2028 BBB 1,155 1,197,793
---------------
TOTAL 3,457,839
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
88
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE 7.27%
Athens-Clarke Cnty GA Univ
Govt Catholic Hlth East Issue 5.50% 11/15/2032 A1 $ 1,000 $ 1,046,110
Clarke Cnty GA Hosp Auth Rev
Ctfs Athens Regl Med Ctr Pj(16) 5.125% 1/1/2032 AAA 500 518,545
Cobb Cnty GA Hosp Auth Rev
Ref & Impt Rev Antic Ctfs(2) 5.25% 4/1/2024 AAA 1,000 1,070,360
Cobb Cnty GA Hosp Auth Rev
Ref Impt Rev Antics Ctfs(2) 5.25% 4/1/2021 AAA 1,000 1,076,020
Coffee Cnty GA Hosp Auth Rev
Ref Coffee Regl Med Ctr Inc Pj 5.00% 12/1/2026 BBB+ 1,000 989,770
Coffee Cnty GA Hosp Auth Rev
Ref Coffee Regl Med Ctr Inc Pj 5.25% 12/1/2022 BBB+ 1,000 1,021,550
Glynn-Brunswick Mem Hosp Auth GA
Rev Unrefunded Bal 2005 Antic Ctfs(16) 6.00% 8/1/2016 AAA 100 102,700
Liberty Cnty GA Hosp Auth Rev
Antic Ctfs Ref GTD(2) 5.00% 8/1/2026 Aaa 1,000 1,057,520
Puerto Rico Indl Tourist Edl
Med Envr Ctrl Fac Hosp 6.50% 11/15/2020 AA 410 459,106
Ware Cnty GA Hosp Auth Rev
Antic Ctfs GTD(16) 5.50% 3/1/2021 Aaa 500 529,070
---------------
TOTAL 7,870,751
---------------
HOUSING 1.26%
GA St Hsg & Fin Auth Rev Sing
Fam Sub Ser D-2 AMT 5.75% 12/1/2031 AAA 735 750,861
GA St Hsg & Fin Auth Rev Sub
Ser A-2 AMT 4.875% 12/1/2024 AAA 100 100,803
Savannah GA Econ Dev Auth
Multi Fam Hsg Rev AMT(13) 5.15% 11/20/2022 AAA 500 512,570
---------------
TOTAL 1,364,234
---------------
INDUSTRIAL 1.84%
Albany Dougherty GA Payroll
Dev Auth Procter & Gamble AMT 5.20% 5/15/2028 AA- 500 531,985
Childrens Tr Fd Puerto Rico Tob
Settlmnt Rev Asset Bkd Bds 5.50% 5/15/2039 BBB 750 771,082
Fulton Cnty GA Dev Auth Dist Cooling
Fac Sr Maxon Atlantic Station A AMT 5.125%# 3/1/2026 BBB 500 490,500
Monroe Cnty GA Dev Auth Pollutn
GA Pwr Co Plant(2) 5.25% 7/1/2031 AAA 205 205,767
---------------
TOTAL 1,999,334
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
LEASE 2.89%
Atlanta GA Dev Auth Rev Tuff
ATDC Pj Ser A 5.00% 1/1/2035 A3 $ 1,250 $ 1,256,937
Fayette Cnty GA Pub Fac Auth
Rev Criminal Justice Ctr Pj 5.00% 6/1/2026 AA 1,040 1,080,092
GA Muni Assn Inc Ctfs City
Court Atlanta Pj(2) 5.25% 12/1/2026 AAA 750 799,770
---------------
TOTAL 3,136,799
---------------
MISCELLANEOUS 3.13%
Assoc Cnty GA Leasing Pj
Rockdale Cnty GA Pub Purp Pj(2) 5.625% 7/1/2020 AAA 25 26,729
Atlanta & Fulton Cnty GA Rec
Auth Rev Park Impt Ser A(16) 5.00% 12/1/2030 AAA 1,000 1,040,340
Cobb Marietta GA Coliseum &
Exhibit Hall Auth Rev(16) 5.625% 10/1/2026 AAA 1,000 1,149,700
George L Smith II GA World
Congress Ctr Auth Rev AMT(16) 5.75% 7/1/2015 AAA 500 531,360
Puerto Rico Pub Bldgs Auth Rev
Unrefunded Bal Govt Facs Ser D GTD 5.375% 7/1/2033 BBB 615 643,942
---------------
TOTAL 3,392,071
---------------
POWER 4.44%
Muni Elec Auth GA Combustion
Cycle Pj Ser A 5.00% 11/1/2023 A 1,000 1,014,650
Muni Elec Auth GA Combustion
Turbine Pj Ser A(16) 5.25% 11/1/2022 AAA 1,445 1,542,422
Puerto Rico Elec Pwr Auth Pwr
Rev Ser RR(11) 5.00% 7/1/2035 AAA 1,000 1,042,770
Puerto Rico Elec Pwr Auth Ref
Ser HH(12) 5.25% 7/1/2029 AAA 1,135 1,208,945
---------------
TOTAL 4,808,787
---------------
PRE-REFUNDED 31.96%
Atlanta GA Arpt Facs Rev
Gen Ser A(11) 5.50% 1/1/2026 AAA 645 691,479
Atlanta GA Arpt Facs Rev
Gen Ser A(11) 5.60% 1/1/2030 AAA 1,500 1,613,280
Atlanta GA ETM 5.60% 12/1/2015 AA- 95 97,189
Clayton Cnty GA Wtr Auth
Wtr & Swr Rev 6.25% 5/1/2017 AA 1,215 1,340,582
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
90
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Cobb Cnty GA Kennestone Hosp Zero Coupon 8/1/2015 AAA $ 395 $ 223,171
Auth Rev Ctfs Ser 86 A ETM(16)
College Park GA Business &
Indl Dev Auth Civic Ctr Pj Rev(2) 5.75% 9/1/2026 AAA 450 494,631
Fayette Cnty GA Pub Fac Auth
Criminal Justice Ctr Pj 6.00% 6/1/2030 AA 1,000 1,097,590
Forsyth Cnty GA Sch Dist 6.00% 2/1/2016 AA 2,000 2,195,700
Forsyth Cnty GA Wtr & Swr Auth Rev 6.25% 4/1/2021 AA 750 826,215
Glynn-Brunswick Mem Hosp GA
Rev 2005 Antic Ctfs(16) 6.00% 8/1/2016 AAA 240 246,749
Glynn-Brunswick Mem Hosp GA
Rev Antic Ctfs(16) 6.00% 8/1/2016 AAA 60 61,687
Muni Secs Trust Ctfs Ser 7005
Cl B ETM RIBs+ 7.144% 10/1/2040 Aaa 1,000 1,142,300
Private Colleges & Univs Auth
GA Rev Emory Univ Pj Ser A 5.50% 11/1/2020 AA 1,000 1,080,870
Private Colleges & Univs Auth
GA Rev Emory Univ Pj Ser A 5.50% 11/1/2025 AA 1,000 1,068,460
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser B(16) 5.875% 7/1/2020 AAA 1,000 1,094,750
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser C 6.00% 7/1/2029 AAA 250 273,873
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser D 5.375% 7/1/2036 AAA 1,405 1,526,799
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser D 5.25% 7/1/2038 AAA 1,500 1,619,715
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser D 5.75% 7/1/2041 AAA 3,385 3,748,346
Puerto Rico Comwlth Hwy
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 BBB+ 2,000 2,039,240
Puerto Rico Comwlth Pub Impt(6)(12) 5.50% 7/1/2017 AAA 500 509,930
Puerto Rico Comwlth Pub Impt(16) 5.75% 7/1/2026 AAA 1,990 2,143,708
Puerto Rico Comwlth Pub Impt Ser A 5.00% 7/1/2027 AAA 370 394,435
Puerto Rico Comwlth Pub Impt Ser A 5.125% 7/1/2031 AAA 335 358,021
Puerto Rico Comwlth Ser A 5.375% 7/1/2028 AAA 580 626,707
Puerto Rico Pub Bldgs Auth
Rev Govt Facs Ser D 5.25% 7/1/2036 A- 915 982,765
Puerto Rico Pub Bldgs Auth
Rev Govt Facs Ser D 5.375% 7/1/2033 A- 1,685 1,821,350
Puerto Rico Pub Fin Corp
Comwlth Approp Ser A(16) 5.50% 8/1/2020 AAA 1,500 1,627,755
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
GEORGIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Pub Fin Corp
Comwlth Approp Ser E 5.70% 8/1/2025 Aaa $ 3,000 $ 3,215,160
Savannah GA Econ Dev Auth Rev
Sub Ser C ETM Zero Coupon 12/1/2021 NR 1,000 483,210
---------------
TOTAL 34,645,667
---------------
RESOURCE RECOVERY 2.45%
Atlanta GA Wtr & Wstwtr Rev
Ser A Unrefunded Bal(11) 5.00% 11/1/2029 AAA 2,090 2,160,328
Cobb Cnty GA Dev Auth Solid Wst
Disp Rev GA Wst Mgt Pj Ser A AMT 3.65%# 4/1/2033 BBB 500 497,065
---------------
TOTAL 2,657,393
---------------
TRANSPORTATION 5.59%
Atlanta GA Arpt Fac Rev AMT(16) Zero Coupon 1/1/2010 AAA 760 617,105
Augusta GA Arpt Rev
Gen Passenger Fac Charge A 5.15% 1/1/2035 Baa3 420 422,608
College Park GA Business & Indl Dev
Auth Rev Civic Ctr Pj(2) 5.25% 9/1/2026 AAA 1,000 1,076,370
Macon Bibb Cnty GA Indl Auth
Arpt Impt Rev Ref Atlantic AMT(2) 5.00% 4/1/2018 AAA 500 513,260
Puerto Rico Comwlth Hwy &
Transn Auth Rev PA 1052 RIBs RITES 7.208% 1/1/2010 AAA(a) 1,750 2,125,690
Puerto Rico Comwlth Hwy &
Transn Auth Rev Ser D(12) 5.00% 7/1/2032 AAA 225 232,405
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 BBB+ 1,000 1,070,230
---------------
TOTAL 6,057,668
---------------
WATER/SEWER 11.74%
Atlanta GA Wtr & Wstwtr(12) 5.00% 11/1/2034 AAA 1,000 1,030,180
Atlanta GA Wtr & Wstwtr(12) 5.00% 11/1/2037 AAA 3,820 3,924,362
Augusta GA Wtr & Swr Rev(12) 5.25% 10/1/2022 AAA 500 533,350
Augusta GA Wtr & Swr Rev(12) 5.25% 10/1/2030 AAA 1,110 1,172,504
Augusta GA Wtr & Swr Rev(12) 5.25% 10/1/2034 AAA 1,000 1,065,500
Carroll Cnty GA Wtr Auth Wtr &
Swr Rev(2) 5.25% 7/1/2021 Aaa 500 535,505
Coweta Cnty GA Wtr & Swr
Auth Rev(12) 5.00% 6/1/2026 Aaa 500 546,125
DeKalb Cnty GA Wtr & Swr 5.00% 10/1/2028 AA 1,240 1,281,726
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
92
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
GEORGIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Elberton GA Combined Util Sys 5.50% 1/1/2019 Aaa $ 550 $ 594,825
Rev Ref & Impt(2)
Fulton Cnty GA Wtr & Swr Rev(11) 5.00% 1/1/2035 AAA 400 414,772
Glynn Cnty GA Wtr & Swr Rev
Ref & Impt(2) 5.00% 4/1/2023 Aaa 750 781,403
Lowndes Cnty GA Pub Facs Auth
Rev Wtr & Swr Pj(2) 5.00% 6/1/2025 AAA 805 845,363
---------------
TOTAL 12,725,615
---------------
TOTAL INVESTMENTS IN MUNICIPAL BONDS 98.01% (cost $103,157,942) 106,231,865
===============
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES 1.99% 2,160,820
---------------
NET ASSETS 100.00% $ 108,392,685
===============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
MUNICIPAL BONDS 101.00%
ACUTE CARE HOSPITAL 2.77%
Hilsborough Cnty FL Indl Dev Auth
Tampa Gen Hosp Pj Ser A 5.00% 10/1/2018 A3 1,000 1,022,550
MA St Hlth & Edl Facs Auth
Rev UMass Mem Issue Ser D 5.00% 7/1/2033 BBB 2,000 1,976,380
MI St Hosp Fin Auth Rev
Chelsea Cmnty Hosp Oblig 5.00% 5/15/2030 BBB 3,175 3,088,132
Monongalia Cnty WV Bldg Cmnty
Hosp Rev Monongalia Gen Hosp Ser A 5.00% 7/1/2030 A- 5,000 4,951,100
NY St Dorm Auth Revs Mt Sinai
NYU Hlth Rmkt 5.50% 7/1/2026 Ba1 1,500 1,523,505
St Paul MN Hsg & Redev Auth
Hosp Rev Healtheast Pj 6.00% 11/15/2035 Baa3 5,750 6,143,472
Washington Cnty AR Hosp Rev
Ref Regl Med Ctr Ser B 5.00% 2/1/2030 BBB 1,500 1,499,895
---------------
TOTAL 20,205,034
---------------
AIRLINES 3.62%
NJ Econ Dev Auth
Continental Airlines Inc Pj AMT 7.20%# 11/15/2030 B 750 760,245
NY New York City Indl Dev Agy Spl Fac
Rev American Airlines JFK Intl Arpt AMT 7.625%# 8/1/2025 B- 23,300 25,662,154
---------------
TOTAL 26,422,399
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
93
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
AIRPORT PASSENGER FACILITY CHARGE 0.33%
Augusta GA Arpt Rev Gen Ser C AMT 5.45% 1/1/2031 Baa3 $ 2,410 $ 2,441,547
---------------
AIRPORT SPECIAL FACILITY 3.28%
Greater Orlando Aviation Auth Orlando FL
Spl Arpt Facs JetBlue Airways Corp AMT 6.375% 11/15/2026 NR 2,250 2,266,222
Greater Orlando Aviation Auth Orlando FL
Spl Arpt Facs JetBlue Airways Corp AMT 6.50% 11/15/2036 NR 5,000 5,056,300
NJ Econ Dev Auth Spl Fac Rev
Continental Airlines Inc Pj AMT 6.25% 9/15/2029 B 8,620 8,494,493
NJ Econ Dev Auth Spl Fac Rev
Continental Airlines Inc Pj AMT 6.625% 9/15/2012 B 900 923,859
NY New York City Indl Dev Agy Spl Fac
Rev American Airlines JFK Intl Arp AMT 7.125% 8/1/2011 B- 5,000 5,175,350
Tulsa OK Muni Arpt Tr Rev Ref
AMR Ser A AMT 5.375%# 12/1/2035 B- 2,000 1,995,080
---------------
TOTAL 23,911,304
---------------
CHARTER SCHOOLS 4.92%
Charyl Stockwell Academy MI COP 5.75% 10/1/2025 NR 4,130 4,165,807
Chester Cnty PA Indl Dev Auth Rev
Renaissance Academy Pj A 5.625% 10/1/2015 NR 1,870 1,875,124
Detroit Cmnty High Sch MI Pub
Sch Academy Rev 5.65% 11/1/2025 BB 1,000 980,240
Detroit Cmnty High Sch MI Pub
Sch Academy Rev 5.75% 11/1/2030 BB 1,255 1,237,078
MI Pub Edl Facs Auth Rev Ltd
Oblig Old Redford Pj Ser A 5.875% 12/1/2030 BBB- 3,720 3,726,436
Milwaukee WI Redev Auth Rev
Science Ed Consortium Pj Ser A 5.625% 8/1/2025 BB+ 1,715 1,695,946
Milwaukee WI Redev Auth Rev
Science Ed Consortium Pj Ser A 5.75% 8/1/2035 BB+ 1,000 984,580
Palm Bay FL Edl Facs Rev
Patriot Charter Sch Pj Ser A(c) 6.75% 7/1/2022 NR 1,460 1,460,000
Palm Bay FL Edl Facs Rev
Patriot Charter Sch Pj Ser A(c) 7.00% 7/1/2036 NR 5,000 5,000,000
Pima Cnty AZ Indl Dev Auth Ed Rev
Ref Horizon Cmnty Learning Ctr 5.25% 6/1/2035 BBB- 10,000 9,580,800
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
94
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Plymouth MI Edl Ctr Chrtr
Sch Pub Sch Academy Rev 5.375% 11/1/2030 BBB- $ 1,500 $ 1,480,800
Summit Academy MI Pub Sch
Academy Rev 6.375% 11/1/2035 BB+ 3,795 3,708,436
---------------
TOTAL 35,895,247
---------------
CONTINUING CARE RETIREMENT
COMMUNITIES 10.79%
Bremer Cnty IA Retirement Fac Rev
Bartels Lutheran Ser A 5.125% 11/15/2020 NR 800 789,840
Bremer Cnty IA Retirement Fac Rev
Bartels Lutheran Ser A 5.375% 11/15/2027 NR 1,400 1,379,686
Bremer Cnty IA Retirement Fac Rev
Bremer Lutheran Ser A 5.00% 11/15/2017 NR 1,140 1,128,075
Bucks Cnty PA Indl Dev Auth Retirement
Cmnty Rev Ann's Choice Inc Fac Ser A 6.125% 1/1/2025 NR 3,500 3,582,880
Director St NV Dept Business &
Industry Las Ventanas Retirement Pj A 7.00% 11/15/2034 NR 6,000 6,198,900
Director St NV Dept Business &
Industry Las Ventanas Retirement Pj B 6.00% 11/15/2014 NR 3,655 3,704,708
IL Fin Auth Rev Clare at Wtr
Tower Pj Ser C 5.125% 5/15/2012 NR 5,000 4,982,900
IL Fin Auth Rev Friendship
Vlg Schaumburg A 5.375% 2/15/2025 BB+(b) 4,000 3,992,680
IL Fin Auth Rev Friendship
Vlg Schaumburg A 5.625% 2/15/2037 BB+(b) 3,730 3,764,689
IL Fin Auth Rev Clare at Wtr Tower
Pj Ser A 6.00% 5/15/2025 NR 4,000 4,014,720
IL Fin Auth Rev Smith Vlg Pj Ser A 5.25% 11/15/2016 NR 4,290 4,184,209
James City Cnty VA Econ Dev Auth Resdl
Care Fac First Mtg Williamsburg Ldg A 5.50% 9/1/2034 NR 1,000 985,800
Lebanon Cnty PA Hlth Facs Auth
Hlth Ctr Rev Pleasant View Rt Ser A 5.125% 12/15/2020 NR 1,400 1,382,122
Lebanon Cnty PA Hlth Facs Auth
Hlth Ctr Rev Pleasant View Rt Ser A 5.30% 12/15/2026 NR 500 489,505
Mesquite TX Health Facs Dev
Retirement Fac Christian Care 5.50% 2/15/2025 BBB- 2,000 2,072,240
Mesquite TX Health Facs Dev
Retirement Fac Christian Care 5.625% 2/15/2035 BBB- 1,750 1,802,605
MI St Hosp Fin Auth Rev Ref
Presbyterian Vlg 5.25% 11/15/2025 BBB-(b) 1,500 1,464,045
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
95
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
NC Med Care Commn Retirement
Facs Rev Ref First Mtg UTD Methodist C 5.25% 10/1/2024 NR $ 750 $ 755,010
NC Med Care Commn Retirement
Facs Rev Ref First Mtg UTD Methodist C 5.50% 10/1/2032 NR 3,600 3,662,532
Olathe KS Sr Living Fac Rev
Catholic Care Campus Inc A 5.65% 11/15/2027 NR 620 622,319
Olathe KS Sr Living Fac Rev
Catholic Care Campus Inc A 6.00% 11/15/2026 NR 4,555 4,724,810
Olathe KS Sr Living Fac Rev
Catholic Care Campus Inc A 6.00% 11/15/2038 NR 4,000 4,094,280
Shelby Cnty TN Health Edl & Hsg
Facs Bd Rev Trezevant Manor Pj Ser A 5.625% 9/1/2026 NR 1,500 1,486,440
St Joseph Cnty Indl Econ Dev
Rev Holy Cross Vlg Notre Dame Pj A 5.70% 5/15/2028 NR 265 266,964
St Joseph Cnty Indl Econ Dev
Rev Holy Cross Vlg Notre Dame Pj A 6.00% 5/15/2026 NR 250 258,970
St Joseph Cnty Indl Econ Dev
Rev Holy Cross Vlg Notre Dame Pj A 6.00% 5/15/2038 NR 475 488,713
Sussex Cnty DE Rev Adj
First Mtg Cadbury Lewes A 5.90% 1/1/2026 NR 500 504,390
Virginia Beach VA Dev Auth Resdl Care
Fac Mtg Rev Ref Westminster Canterbury 5.25% 11/1/2026 NR 3,000 3,022,320
Virginia Beach VA Dev Auth Resdl Car
Fac Mtg Rev Ref Westminster Canterbury 5.375% 11/1/2032 NR 7,100 7,175,899
Westmoreland Cnty PA Indl Dev
Auth Rev Retirement Cmnty Redstone A 5.75% 1/1/2026 NR 1,200 1,214,964
Winchester VA Indl Dev Auth Resdl Care
Fac Rev Westminster Canterbury Ser A 5.20% 1/1/2027 NR 2,500 2,501,525
Winchester VA Indl Dev Auth Resdl Care
Fac Rev Westminster Canterbury Ser A 5.30% 1/1/2035 NR 2,000 2,003,980
---------------
TOTAL 78,702,720
---------------
CORRECTIONAL FACILITIES 0.84%
Garza Cnty TX Pub Fac Corp Pj Rev 5.25% 10/1/2017 BBB 1,000 1,017,260
Garza Cnty TX Pub Fac Corp Pj Rev 5.50% 10/1/2019 BBB 1,600 1,649,600
Madison Cnty FL Rev First Mtg
Twin Oaks Pj Ser A 6.00% 7/1/2025 NR 1,300 1,332,825
San Luis AZ Fac Dev Copr Rev
Sr Lien Pj Regl Detention Ctr 7.00% 5/1/2020 NR 1,000 973,720
San Luis AZ Fac Dev Copr Rev
Sr Lien Pj Regl Detention Ctr 7.25% 5/1/2027 NR 1,200 1,162,716
---------------
TOTAL 6,136,121
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
96
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
DIRT BONDS, TAX INCREMENT/ALLOCATION 2.21%
Allegheny Cnty PA Redev Auth
Rev Pittsburgh Mills Pj 5.60% 7/1/2023 NR $ 500 $ 524,180
Atlanta GA Tax Allocation
Eastside Pj Ser A AMT 5.625% 1/1/2016 NR 1,500 1,538,565
Atlanta GA Tax Allocation
Eastside Pj Ser B 5.60% 1/1/2030 NR 1,000 1,024,540
Beaumont CA Fin Auth Loc Agy
Rev Ser D 5.80% 9/1/2035 NR 500 522,845
Branson MO Indl Dev Auth Tax Increment
Rev Branson Landing Retail Pj 5.50% 6/1/2029 NR 6,220 6,259,497
Etiwanda Sch Dist CA Spl Tax
Cmnty Facs Dist No 2004-1 5.45% 9/1/2029 NR 1,000 1,013,400
Indio CA Cmnty Facs Dist No 04-3
Terra Lago Impt Area 1 5.15% 9/1/2035 NR 1,825 1,802,845
Poway CA Unif Sch Dist Spl
Tax Cmnty Facs Dist No 11 Area B 5.00% 9/1/2030 NR 1,000 972,480
San Francisco CA City & Cnty Rd
Agy Dist No 6 Mission Bay South Ser A 5.15% 8/1/2035 NR 1,500 1,480,665
Temecula Vly CA Unif Sch Dist
Cmnty Facs Dist Spl Tax No 02-1 5.125% 9/1/2035 NR 1,000 996,180
---------------
TOTAL 16,135,197
---------------
EDUCATION 0.70%
Charyl Stockwell Academy MI COP 5.90% 10/1/2035 NR 3,000 3,027,870
PA St Higher Edl Facs Auth College &
Univ Rev Geneva College 5.375% 4/1/2015 BBB- 2,000 2,060,300
---------------
TOTAL 5,088,170
---------------
ELECTRIC REVENUE BONDS 0.83%
MS Business Fin Corp MS
Pollutn Ctrl Sys Energy Res Inc Pj 5.875% 4/1/2022 BBB- 5,995 6,052,312
---------------
GAMING 0.87%
Mohegan Tribe Indians CT Gaming
Auth Pub Impt Priority Dist 5.375% 1/1/2011 BB+ 1,400 1,458,926
Mohegan Tribe Indians CT Pub
Impt Priority Dist 5.125% 1/1/2023 BB+ 3,350 3,352,915
Mohegan Tribe Indians CT Pub
Impt Priority Dist 5.25% 1/1/2033 BB+ 1,500 1,503,660
---------------
TOTAL 6,315,501
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
97
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
GENERAL AIRPORT REVENUE BONDS 0.73%
Dallas-Fort Worth TX Intl Arpt Fac Impt
Corp Rev Ref A Sub Ser 1 Rmkt AMT 8.50%# 5/1/2029 CCC $ 1,000 $ 1,021,260
Dallas-Fort Worth TX Intl Arpt Fac Impt
Corp Rev Ref A Sub Ser 2 Rmkt AMT 9.00%# 5/1/2029 CCC 2,500 2,688,875
Dallas-Fort Worth TX Intl Arpt Fac Impt
Corp Rev Ref A Sub Ser 3 Rmkt AMT 9.125% 5/1/2029 CCC 1,500 1,627,740
---------------
TOTAL 5,337,875
---------------
GENERAL OBLIGATION 0.78%
CA St PA 1300 RIBs RITES 6.269% 11/1/2024 NR 5,000 5,475,400
Todd Morrison Cass & Wadena Cntys
MN Hlthcare Fac Lakewood 5.00% 12/1/2034 Baa2 250 252,610
---------------
TOTAL 5,728,010
---------------
HEALTHCARE 2.96%
IL Fin Auth Rev Landing at
Plymouth Pl Pj A 6.00% 5/15/2025 NR 3,000 3,042,900
Kerrville TX Health Facs Dev Corp
Hosp Rev Sid Peterson Mem Hosp Pj 5.125% 8/15/2026 BBB- 1,125 1,121,400
Kerrville TX Health Facs Dev Corp
Hosp Rev Sid Peterson Mem Hosp Pj 5.375% 8/15/2035 BBB- 6,875 6,905,319
Knox Cnty TN Hlth Ed & Hsg
Fac Bd Rev Univ Hlth Sys Inc 5.625% 4/1/2029 Baa1 1,000 1,033,080
MA St Hlth & Edl Facs
Auth Rev Milton Hosp Ser D 5.25% 7/1/2030 BBB- 2,000 2,015,860
NC Med Care Cmnty Hlthcare Facs
Rev Ref 1st Mtg Presbyterian Ser A 5.25% 7/1/2021 NR 1,720 1,705,621
St Paul MN Hsg & Redev Auth
Hosp Rev Healtheast Pj 6.00% 11/15/2030 Baa3 2,500 2,682,875
Sylacauga AL Hlthcare Auth
Rev Ser A Coosa Vly Med Ctr 6.00% 8/1/2035 NR 3,000 3,059,310
---------------
TOTAL 21,566,365
---------------
HEALTHCARE SYSTEM 6.04%
Franklin Cnty OH Hlthcare Facs
Rev OH Presbyterian Svcs A 5.00% 7/1/2026 BBB 1,200 1,198,392
Joplin MO Indl Dev Auth
Hlthfacs Rev Freeman Hlth Sys Pj 5.75% 2/15/2035 BBB+ 500 531,530
KY Econ Dev Fin Auth Hlth Sys
Norton Healthcare Inc Ser A 6.50% 10/1/2020 BBB+(b) 1,445 1,569,429
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
98
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SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Lubbock TX Hlth Facs Dev Corp
Rev Ref 1st Mtg Carillon Pj A 6.30% 7/1/2019 NR $ 4,010 $ 3,911,274
MA St Hlth & Edl Facs Auth
Rev Caritas Christi Oblig Grp A 5.625% 7/1/2020 BBB 1,005 1,037,663
MA St Hlth & Edl Facs Auth
Rev Umass Mem Issue Ser D 5.25% 7/1/2025 BBB 10,565 10,891,775
Miami Beach FL Hlth Facs Rev
Hosp Auth Mt Sinai Med Ctr FL Pj 5.375% 11/15/2028 BB+ 2,905 2,868,136
NC Med Care Cmnty Hlthcare Facs
Rev Ref 1st Mtg Presbyterian Ser A 5.125% 7/1/2018 NR 1,000 988,730
NJ Hlthcare Fac Fin Auth Rev
Somerset Med Ctr 5.50% 7/1/2033 Baa3 1,700 1,710,931
NY St Dorm Auth Revs Non St Supported
Debt Mt Sinai NYU Hlth C Rmkt 5.50% 7/1/2026 Ba1 4,000 4,062,680
Orange Cnty FL Hlth Fac Auth
Ref Hlthcare Orlando Lutheran 5.375% 7/1/2020 NR 1,100 1,076,988
Orange Cnty FL Hlth Fac Auth
Ref Hlthcare Orlando Lutheran 5.70% 7/1/2026 NR 1,920 1,910,918
St Mary Hosp Auth PA Hlth Sys
Rev Catholic Hlth Ser B 5.375% 11/15/2034 A1 500 525,820
St Paul MN Port Auth Lease
Rev Healtheast Midway Campus 03 A 5.75% 5/1/2025 BB 1,520 1,542,450
Sylacauga AL Hlthcare
Auth Ser A Coosa Vly Medical Ctr 6.00% 8/1/2025 NR 3,000 3,077,190
Tomball TX Hosp Auth Rev Ref Hosp 5.00% 7/1/2020 Baa3 5,000 4,979,450
Virginia MN Hsg & Redev Auth
Hlthcare Fac Lease Rev 5.375% 10/1/2030 Baa1 2,165 2,199,553
---------------
TOTAL 44,082,909
---------------
HOTEL CONVENTION 0.57%
Baltimore MD Convention Ctr
Hotel Rev Sub Ser B 5.875% 9/1/2039 Ba1 4,000 4,149,520
---------------
HOUSING 1.02%
MA St Hsg Fin Agy Hsg Rev Ser K20 RIBs+ 7.05% 12/1/2048 Aa3 5,930 5,930,000
MA St Hsg Fin Agy Hsg Ser E AMT 5.00% 12/1/2028 AA- 1,500 1,493,850
---------------
TOTAL 7,423,850
---------------
INDUSTRIAL 3.87%
Allegheny Cnty PA Indl Dev
Auth Rev Ref Environ Impt 5.50% 11/1/2016 Ba1 1,500 1,543,560
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
99
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Butler AL Indl Dev Bd Solid Wst Disp
Rev Ref GA Pacific Corp Pj AMT 5.75% 9/1/2028 B $ 1,500 $ 1,475,790
Courtland AL Indl Dev Bd Ref Solid
Wst Disp Rev Intl Paper Co Pj B AMT 5.20% 6/1/2025 BBB 2,305 2,309,840
Courtland AL Indl Dev Bd Solid Wst
Disp Rev Ref Intl Paper Co Pj A AMT 5.20% 6/1/2025 BBB 5,500 5,511,550
Fulton Cnty GA Dev Auth Loc Dist Cooling
Fac Rev Sr Maxon Atlantic Station A AMT 5.125%# 3/1/2026 BBB 1,000 981,000
IL Fin Auth Solid Wst
Disp Wst Mgmt Inc Pj AMT 5.05% 8/1/2029 BBB 1,500 1,502,460
NJ Econ Dev Auth Rev Glimcher
Pptys LP Pj AMT 6.00% 11/1/2028 NR 5,000 5,027,450
OH St Environmental Facs Rev
Ford Motor Co Pj AMT 6.15% 6/1/2030 BB- 2,000 1,818,080
OR St Econ Dev Rev Ref GA
Pacific Corp Pj Ser 183 AMT 5.70% 12/1/2025 B2 980 963,997
Port Corpus Christi Auth TX
Celanese Pj Ser A 6.45% 11/1/2030 B 6,700 7,079,756
---------------
TOTAL 28,213,483
---------------
INVESTOR OWNED UTILITY 2.56%
PA Econ Dev Fin Auth Exempt Facs Rev
Reliant Energy B Conv 12/22/04 AMT 6.75%# 12/1/2036 B2 9,500 10,131,370
PA Econ Dev Fin Auth Rev
Reliant Energy A AMT 6.75%# 12/1/2036 B2 1,500 1,599,690
PA Econ Dev Fin Auth Facs Rev Reliant
Energy Seward Ser A AMT 6.75%# 12/1/2036 B2 6,500 6,931,990
---------------
TOTAL 18,663,050
---------------
MISCELLANEOUS 4.05%
Beauregard Parish LA Rev
Ref Boise Cascade Corp Pj 6.80% 2/1/2027 Ba2 4,750 5,167,193
De Kalb Cnty GA Dev Auth Pollutn
Ctrl Rev Ref Gen Mtrs Corp Pj 6.00% 3/15/2021 B 4,500 3,652,380
Liberty NY Dev Corp Rev K 9 RIBs+ 7.608% 10/1/2035 Aa3 10,890 13,455,466
Red River Auth TX Pollutn
Ctrl Celanese Pj Ser A 6.45% 11/1/2030 B 2,495 2,635,194
Sweetwater Cnty WY Solid Wst
Disp Ref FMC Corp Pj AMT 5.60% 12/1/2035 BBB- 4,500 4,645,980
---------------
TOTAL 29,556,213
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
100
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MULTI-FAMILY HOUSING 1.86%
El Paso Cnty TX Hsg Fin Corp Multi
Fam Hsg Rev Las Lomas Apts Ser A 6.375% 12/1/2029 Ba1 $ 3,280 $ 3,040,724
El Paso Cnty TX Hsg Fin Corp
Multi Fam Hsg Rev Las Lomas Apts Ser A 6.45% 12/1/2019 Ba1 1,515 1,457,733
MA St Hsg Fin Agy Hsg Ser B 5.00% 6/1/2030 AA- 1,000 1,015,730
Met Govt Nashville & Davidson Cnty TN
Facs Bd Rev Multi Fam Hsg Prestige A 7.50% 12/20/2040 NR 4,000 4,001,800
MuniMae TE Bond Subsidiary LLC
Perp Sub Pfd Shs Ser B 3+(d) 5.30% 9/30/2015 NR 2,000 2,022,280
MuniMae TE Bond Subsidiary LLC
Perp Sub Pfd Shs Ser D+(d) 5.90% 9/30/2015 NR 2,000 2,004,300
---------------
TOTAL 13,542,567
---------------
MULTI-FAMILY REVENUE BONDS 0.14%
Garza Cnty TX Pub Fac Corp Pj Rev 5.50% 10/1/2018 BBB 1,000 1,033,370
---------------
NOT FOR PROFIT 0.24%
IA Fin Auth Child Svcs 5.375% 6/1/2026 NR 1,795 1,759,172
---------------
NURSING HOME 0.21%
Kerrville TX Hlth Facs Dev Corp
Hosp Rev Sid Peterson Mem Hosp Pj 5.45% 8/15/2035 BBB- 1,500 1,507,905
---------------
NURSING HOME CONTINUING CARE
RETIREMENT COMMUNITIES 0.60%
CO Hlth Fac Auth Rev
Covenant Retirement Cmntys Inc 5.00% 12/1/2035 BBB 4,000 3,882,960
WI Hlth & Edl Facs Hlth Facs
Three Pillars Sr Living A 5.50% 8/15/2034 A-(b) 500 507,660
---------------
TOTAL 4,390,620
---------------
PORT FACILITIES 0.42%
Port Of Bay City Auth TX Matagorda Cnty
Rev Hoechst Celanese Corp Pj AMT 6.50% 5/1/2026 B 3,005 3,072,192
---------------
RESOURCE RECOVERY 2.40%
Burlington KS Pollution Ctrl
RI TRS Ser K RIBs 9.06% 6/1/2031 AAA 4,500 5,343,210
CA Polltn Ctrl Fin Auth
Solid Wst Mgmt Inc Pj Ser A2 AMT 5.40% 4/1/2025 BBB 1,000 1,041,520
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
101
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Gaston Cnty NC Facs & Pollutn Ctrl
Fin Auth Rev Exempt Facs Natl 5.75% 8/1/2035 NR $ 4,890 $ 5,101,004
Gypsum Co Pj AMT
Independence Cnty AR Pollutn
Ctrl Rev Ref Entergy AR Inc Pj 5.00% 1/1/2021 A- 1,000 1,008,660
Little River Cnty AR Rev Ref
GA Pacific Corp Pj AMT 5.60% 10/1/2026 B2 2,475 2,445,275
Moraine OH Solid Wst Disp Rev
General Motors Corp Pj AMT 6.75% 7/1/2014 B 2,000 1,816,180
Niagara Cnty NY Indl Dev Agy
Solid Wst Disposal Ser B AMT 5.55%# 11/15/2024 Baa3 750 788,872
---------------
TOTAL 17,544,721
---------------
SALES TAX 0.94%
NJ Econ Dev Auth Rev PA
1304 RIBs RITES(12) 8.617% 9/1/2025 AAA 3,350 4,825,139
Wyandotte Cnty/Kansas City KS
Unif Govt Spl Oblig Rev Ref Sales Tax
2nd Lien Area B 5.00% 12/1/2020 BBB-(b) 2,000 2,046,020
---------------
TOTAL 6,871,159
---------------
SINGLE-FAMILY HOUSING 1.10%
ID Hsg & Fin Assn Sing Fam
Mtg Rev Ser D-Cl III AMT 4.90% 1/1/2026 A1 2,000 2,016,840
NJ St Hsg & Mtg Fin
Agy Sing Fam Ser M AMT 5.00% 10/1/2036 AA 1,405 1,411,055
PA Hsg Fin Agy Sing
Fam Mtg Ser 90A AMT 4.70% 10/1/2025 AA+ 1,500 1,485,105
Puerto Rico Hsg Fin Corp Rev
Hmwnr Mtg Ser A AMT(13) 5.20% 12/1/2032 AAA 1,620 1,664,923
UT Hsg Corp Sing Fam Mtg Rev
Ser A 1 CL II AMT 4.95% 7/1/2028 AA 1,430 1,443,099
---------------
TOTAL 8,021,022
---------------
SINGLE FAMILY REVENUE BONDS 1.12%
AK St Hsg Fin Corp PA
1298 RIBs RITES(16) 6.553% 12/1/2025 NR 5,000 5,712,200
ND St Hsg Fin Agy Rev
Hsg Fin Pg Home Mtg Fin C AMT 4.70% 1/1/2029 Aa1 2,500 2,435,075
---------------
TOTAL 8,147,275
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
102
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
SPECIAL ASSESSMENT 15.51%
Arborwood Cmnty Dev Dist FL
Cap Impt Rev Master Infras Pj A 5.35% 5/1/2036 NR $ 5,000 $ 4,996,050
Bartram Pk Cmnty Dev Dist FL
Spl Assmt 5.30% 5/1/2035 NR 2,000 1,994,020
Baywinds Cmnty Dev Dist FL
Spl Assmt Ser A(c) 5.25% 5/1/2037 NR 1,130 1,128,644
Brentwood CA Infrast Fin Auth CIFP-1 5.00% 9/2/2025 NR 2,500 2,445,200
Brentwood CA Infrast Fin Auth CIFP-1 5.15% 9/2/2035 NR 1,000 980,650
Cypress Creek Hillsborough
Cnty Cmnty Dev Dist FL Cap 5.35% 5/1/2037 NR 7,000 6,968,150
Durbin Crossing Cmnty Dev
Dist FL Spl Assmt Ser A 5.50% 5/1/2037 NR 6,000 6,032,700
East Homestead Cmnty Dev Dist
FL Spl Assmt Rev 5.45% 5/1/2036 NR 1,000 1,003,030
IA Fin Auth Child Svcs 5.50% 6/1/2031 NR 2,760 2,717,275
Lake Elsinore CA Unif Sch
Cmnty Facs Dist Spl Tax No 2004-03 5.25% 9/1/2029 NR 1,650 1,632,378
Lancaster Cnty SC Assmt Rev
Sun City Carolina Lakes Impt 5.45% 12/1/2037 NR 1,000 1,004,620
Modesto CA Spl Tax Cmnty
Facs Dist No 04 1 Vlg 2 5.15% 9/1/2036 NR 2,000 2,009,660
Murrieta CA Cmnty Facs Dist
Spl Tax No 3 Creekside Vlg Impt Area 1 5.20% 9/1/2035 NR 1,500 1,475,505
Northstar Cmnty Svcs Dist CA Spl Tax
Cmnty Facs Dist No 1 5.45% 9/1/2028 NR 7,000 7,136,640
Palm Glades Cmnty Dev Dist FL
Spl Assmt Ser A(c) 5.30% 5/1/2036 NR 1,250 1,257,700
Palma Sola Trace Cmnty Dev
Dist FL Cap Impt Rev 5.75% 5/1/2035 NR 885 889,487
Panther Trace II FL Cmnty Dev
Dist Rev Spl Assmt Ser A 5.60% 5/1/2035 NR 1,875 1,885,781
Pine Isl Cmnty Dev Dist FL Spl Assmt 5.75% 5/1/2035 NR 3,250 3,304,535
Poway CA Unif Sch Dist Spl
Tax Cmnty Facs Dist 6-4S Ranch 5.125% 9/1/2035 NR 2,100 2,082,549
Prince Georges Cnty MD Spl
Oblig Natl Harbor Pj Rmkt 5.20% 7/1/2034 NR 10,250 10,249,180
Prince Georges Cnty MD
Spl Tax Victoria Falls Pj 5.25% 7/1/2035 NR 1,250 1,238,450
Rancho Cordova Cmnty Facs Dist
CA Spl Tax No 2003 1 Sunridge Anatolia 5.375% 9/1/2030 NR 1,500 1,510,005
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
103
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Rio CA Elem Sch Dist Cmnty
Facs Dist Spl Tax No 1 5.125% 9/1/2028 NR $ 3,000 $ 3,006,150
River Bend Cmnty Dev Dist FL
Cap Impt Rev 5.45% 5/1/2035 NR 960 957,734
Roseville CA Spl Tax Cmnty
Facs Dist No 1 Westpark 5.15% 9/1/2030 NR 2,000 1,988,900
Roseville CA Spl Tax Cmnty
Facs Dist No 1 Westpark 5.20% 9/1/2036 NR 3,500 3,482,325
Saugus CA Unif Sch Dist Spl Tax
Cmnty Facs Dist No 2005-1 5.25% 9/1/2026 NR 1,135 1,142,480
Saugus CA Unif Sch Dist Spl Tax
Cmnty Facs Dist No 2005-1 5.30% 9/1/2036 NR 1,265 1,275,183
Tern Bay Cmnty Dev Dist FL
Cap Impt Rev Ser A 5.375% 5/1/2037 NR 8,000 8,028,240
Tolomato Cmnty Dev Dist FL
Spl Assmt 5.40% 5/1/2037 NR 3,000 3,025,560
Watson Rd Cmnty Facs Dist AZ
Spl Assmt Rev 5.75% 7/1/2022 NR 3,960 3,938,933
Westridge Cmnty Dev Dist FL
Cap Impt Rev 5.80% 5/1/2037 NR 15,000 14,999,250
William S Hart CA Unif High Sch Dist
Spl Tax Cmnty Facs Dist No 2005-1 5.25% 9/1/2026 NR 845 850,569
William S Hart CA Unif High Sch Dist
Spl Tax Cmnty Facs Dist No 2005-1 5.30% 9/1/2036 NR 1,895 1,910,255
Woodmen Heights Met Dist No 1 CO Rev 6.75% 12/1/2020 NR 1,500 1,515,705
Woodmen Heights Met Dist No 1 CO Rev 7.00% 12/1/2030 NR 3,000 3,055,200
---------------
TOTAL 113,118,693
---------------
SPECIAL TAX 0.88%
Atlanta GA Tax Alloc
Princeton Lakes Pj 5.50% 1/1/2031 NR 1,235 1,242,287
Lake Elsinore CA Spl Tax
Cmnty Facs Dist 3 Impt Area 1 5.25% 9/1/2030 NR 1,195 1,196,661
Menifee CA Unif Sch Dist Spl
Tax Cmnty Facs Dist No 2002-5 5.50% 9/1/2034 NR 500 506,030
Midtown Miami FL Cmnty Dev FL
Spl Assmt Rev Ser A 6.25% 5/1/2037 NR 500 543,300
South Fork East Cmnty Dev
Dist FL Cap Impt Rev 5.35% 5/1/2036 NR 2,925 2,914,031
---------------
TOTAL 6,402,309
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
104
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
STUDENT HOUSING 0.14%
Cleveland Cuyahoga Cnty OH
Student Hsg Euclid Ave Fenn Pj(2) 5.00% 8/1/2021 AAA $ 1,000 $ 1,048,540
---------------
TOBACCO 16.49%
Badger Tob Asset Securitization
Corp WI Asset Bkd 6.375% 6/1/2032 BBB 3,340 3,587,795
Golden St Tob Securitization Corp
CA Tob Settlmnt Rev F C1 RIBs+ 6.37% 6/1/2045 A3 10,000 10,336,800
Golden St Tob Securitization Corp
CA Tob Settlmnt Rev Ser 2003 A 1 6.75% 6/1/2039 BBB 1,290 1,452,359
Nassau Cnty NY Tobacco
Settlmnt Corp Asset Bkd Sr A 3(c) 5.125% 6/1/2046 BBB 5,000 4,840,450
Northern Tob Securitization Corp AK
Tob Settlmnt Asset Bkd Bds 6.50% 6/1/2031 BBB 1,125 1,178,505
Tob Securitization Auth So CA Tob
Settlmnt Asset Bkd Bds Sr Ser A 5.25% 6/1/2027 BBB 840 854,868
Tob Settlmnt Auth IA Tob
Sttlmnt Rev Asset Bkd Ser C 5.375% 6/1/2038 BBB 8,000 8,059,760
Tob Settlmnt Auth IA Tob
Settlmnt Rev Asset Bkd Ser C 5.625% 6/1/2046 BBB 3,100 3,169,843
Tob Settlment Fin Corp NJ 6.75% 6/1/2039 BBB 1,000 1,118,760
Tob Settlmnt Fin Corp RI
Asset Bkd Ser A 6.00% 6/1/2023 BBB 4,075 4,257,601
Tob Settlmnt Fin Corp RI
Asset Bkd Ser A 6.125% 6/1/2032 BBB 1,410 1,472,562
Tob Settlmnt Fin Corp RI
Asset Bkd Ser A 6.25% 6/1/2042 BBB 2,905 3,029,508
Tob Settlmnt Fin Corp VA Asset Bkd 5.50% 6/1/2026 BBB 9,950 10,215,565
Tob Settlmnt Fin Corp VA Asset Bkd 5.625% 6/1/2037 BBB 9,800 10,049,312
Tob Settlmnt Rev Mgmt
Auth SC Sec B 6.375% 5/15/2028 BBB 2,800 3,014,312
Tob Settlmnt Rev Mgmt Auth Ser B 6.375% 5/15/2030 BBB 7,800 8,749,884
TSASC Inc NY Ser 1 5.00% 6/1/2034 BBB 35,000 34,069,700
TSASC Inc NY Ser 1 5.125% 6/1/2042 BBB 10,000 9,781,900
Westchester Tob Asset Securitization
Corp NY 5.125% 6/1/2038 BBB 1,060 1,039,457
---------------
TOTAL 120,278,941
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
105
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
HIGH YIELD MUNICIPAL BOND FUND MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
TOLL ROADS 0.39%
NJ St Tpk Auth Rev Rols RR II
R 323 RIBs(2) 6.709% 1/1/2035 Aaa $ 500 $ 529,790
Pocahontas Pkwy Assoc VA Toll
Rd Rev Ser A 5.50% 8/15/2028 BB- 2,270 2,320,598
---------------
TOTAL 2,850,388
---------------
TRANSPORTATION 3.97%
Augusta GA Arpt Rev Gen Arprt
Passenger B AMT 5.35% 1/1/2028 Baa3 500 504,470
Metropolitan Transn Auth
NY Rev K3 RIBs 6.62% 11/15/2035 NR 10,000 10,820,000
NJ Econ Dev Auth Spl Fac Rev
Continental Airlines Inc Pj AMT 6.25% 9/15/2019 B 3,000 2,964,990
Santa Rosa Bay Bridge Auth FL Rev 6.25% 7/1/2028 B1 1,540 1,569,014
St Paul MN Port Auth Lease
Rev Healtheast Midway Campus 03 A 5.875% 5/1/2030 BB 1,000 1,022,160
Tulsa OK Muni Arpt Tr Rev Ref
Ser A Rmkt AMT 7.75%# 6/1/2035 B- 11,000 12,073,490
---------------
TOTAL 28,954,124
---------------
UNIVERSITIES 0.85%
MA St Dev Fin Agy Rev Eastern
Nazarene College 5.625% 4/1/2029 BB+ 1,000 1,017,760
NY St Dorm Auth Revs Non St Supported
Debt Montefiore Med Ctr(9)(11) 5.00% 2/1/2022 AAA 5,000 5,220,800
---------------
TOTAL 6,238,560
---------------
TOTAL MUNICIPAL BONDS (cost $732,253,458) 736,808,385
===============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENTS 0.00%
MONEY MARKET MUTUAL FUNDS 0.00%
Dreyfus Municipal Cash Management Plus 6 6,322
SSgA Tax Free Money Market Fund 6 5,957
---------------
TOTAL SHORT-TERM INVESTMENTS (cost $12,279) 12,279
===============
TOTAL INVESTMENTS IN SECURITIES 101.00% (cost $732,265,737) 736,820,664
===============
LIABILITIES IN EXCESS OF OTHER ASSETS (1.00%) (7,314,799)
---------------
NET ASSETS 100.00% $ 729,505,865
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
106
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 99.84%
EDUCATION 8.56%
Grand Vly MI St Univ Rev(11) 5.50% 2/1/2018 AAA $ 1,150 $ 1,263,999
MI Higher Ed Student Ln Auth Rev
Student Ln Ser XVII-P AMT GTD(2) 4.875% 3/1/2030 AAA 1,000 989,510
MI Muni Bd Auth Rev Ref Sch
Dist City of Detroit(12) 5.00% 6/1/2020 AAA 1,000 1,049,370
North Branch MI Area Schs Sch
Bldg & Site(16) 5.00% 5/1/2035 AAA 1,000 1,039,900
Plymouth MI Edl Ctr Chrtr Sch
Pub Sch Academy Rev 5.375% 11/1/2035 BBB- 400 392,720
Puerto Rico Comwlth Pub Impt
PA 1280 RIBs RITES 5.788% 7/1/2034 AA+ 1,000 1,025,460
Wayne Cnty MI Cmnty College Impt(2) 5.50% 7/1/2019 AAA 565 597,030
---------------
TOTAL 6,357,989
---------------
GENERAL OBLIGATION 29.15%
Adrian MI City Sch Dist(12) 5.00% 5/1/2034 AAA 1,500 1,553,325
Anchor Bay MI Sch Dist Sch
Bldg & Site 5.00% 5/1/2033 AA 1,000 1,029,810
Belding MI Area Sch(2) 5.00% 5/1/2026 AAA 400 407,708
Birmingham MI City Sch Dist
Sch Bldg & Site(12) 5.00% 11/1/2033 AAA 1,000 1,039,530
Caledonia MI Cmnty Schs(6)(12) 5.25% 5/1/2022 AAA 1,025 1,093,460
Carman-Ainsworth MI Cmnty Sch(11) 5.00% 5/1/2027 AAA 1,000 1,033,250
Grand Blanc MI Cmnty Schs Sch
Bldg & Site(12) 5.00% 5/1/2021 AAA 500 524,685
Grand Rapids MI Smartzone Loc
Dev Auth(2) 5.375% 6/1/2028 AAA 1,125 1,215,416
Huron MI Sch Dist(12) 5.25% 5/1/2021 AAA 250 263,390
Lincoln MI Cons Sch Dist Ref(16) 5.00% 5/1/2021 AAA 2,120 2,238,445
New Haven MI Cmnty Schs
Ref Sch Bldg & Site(12) 5.00% 5/1/2025 AAA 1,910 2,005,557
New Lothrop MI Area Pub
Schs Ref Sch Bldg & Site(12) 5.00% 5/1/2028 AAA 1,250 1,305,050
Pontiac MI Fiscal Stabilization(5) 5.00% 5/1/2021 AAA 1,000 1,051,690
Royal Oak MI Ref Cap Impt Ser B(c)(16) 4.375% 5/1/2026 AAA 1,000 972,000
Saginaw MI City Sch Dist Sch
Bldg & Site(12) 5.00% 5/1/2034 AAA 1,125 1,165,770
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
107
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
South Lyon MI Cmnty Schs Sch
Bldg & Site(11) 5.25% 5/1/2022 AAA $ 1,000 $ 1,067,420
Southfield MI Pub Schs Sch
Bldg & Site Ser A(11) 5.25% 5/1/2021 AAA 1,025 1,094,751
Southfield MI Pub Schs Sch
Bldg & Site Ser B(12) 5.00% 5/1/2029 AAA 1,000 1,041,740
Warren MI Cons Sch Dist Sch
Bldg & Site(11) 5.00% 5/1/2027 AAA 1,000 1,037,940
Wayne Cnty MI Bldg Auth Cap
Impt Ser A(16) 5.25% 6/1/2016 AAA 500 511,195
---------------
TOTAL 21,652,132
---------------
HEALTHCARE 4.58%
Kent Hosp Fin Auth MI Rev
Met Hosp Pj Ser A 6.00% 7/1/2035 BBB 375 401,899
MI St Hosp Fin Auth Rev(16) 5.00% 11/15/2036 AAA 1,500 1,548,690
MI St Hosp Fin Auth Rev
Marquette Gen Hosp Oblig Grp A 5.00% 5/15/2034 Baa1 375 370,515
MI St Hosp Fin Auth Rev Ref
Trinity Hlth Ser A(2)(18) 6.00% 12/1/2027 AAA 1,000 1,084,900
---------------
TOTAL 3,406,004
---------------
INDUSTRIAL 0.73%
Childrens Tr Fd Puerto Rico Tob
Settlmnt Rev Asset Bkd Bds 5.50% 5/15/2039 BBB 525 539,758
---------------
LEASE 2.38%
Grand Rapids MI Pub Sch(16) 5.00% 11/1/2021 AAA 250 260,645
MI St Hse Reps Cap Apprec COP(2) Zero Coupon 8/15/2024 AAA 3,565 1,511,025
---------------
TOTAL 1,771,670
---------------
POWER 2.07%
MI St Strategic Fd Ltd Oblig(2) 7.00% 5/1/2021 AAA 500 642,110
MI St Strategic Fd Ltd Oblig
Rev Detroit Fd Ser BB(16) 7.00% 7/15/2008 AAA 350 375,221
Puerto Rico Elec Pwr Auth Pwr
Rev Ser NN(16) 5.00% 7/1/2032 AAA 500 518,390
---------------
TOTAL 1,535,721
---------------
PRE-REFUNDED 38.18%
Alpena MI Pub Sch(16) 5.625% 5/1/2022 AAA 500 510,805
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
108
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Anchor Bay MI Sch Dist Sch
Bldg & Site Ser I(11) 6.00% 5/1/2023 AAA $ 1,100 $ 1,175,108
Bloomingdale MI Pub Sch Dist No 16 5.50% 5/1/2021 AA 450 485,622
Central Montcalm MI Pub Schs(16) 5.90% 5/1/2019 AAA 1,000 1,065,400
Crawford Ausable MI Sch Dist
Sch Bldg & Site 5.00% 5/1/2021 AA 350 369,698
Detroit MI City Sch Dist Sch
Bldg & Site Impt Ser A(11) 5.25% 5/1/2028 AAA 1,000 1,079,500
Eastern MI Univ Rev(11) 5.50% 6/1/2027 AAA 500 511,615
Eastern MI Univ Revs Gen Ser B(11) 5.60% 6/1/2025 AAA 1,430 1,535,405
Elkton Pigeon Bay Port MI Sch Dist 5.375% 5/1/2025 AA 700 744,744
Forest Hills MI Pub Schs(11) 5.25% 5/1/2020 Aaa 1,750 1,850,257
Greenville MI Pub Sch Ref(12) 6.00% 5/1/2025 AAA 1,000 1,068,280
Hartland MI Cons Sch Dist(11) 6.00% 5/1/2021 AAA 1,950 2,120,352
Howell MI Pub Sch(16) 6.00% 5/1/2025 AAA 1,100 1,128,072
Huron Vly MI Sch Dist(11) 5.75% 5/1/2022 AAA 250 255,730
Kalamazoo MI Hosp Fin Auth Hosp
Fac Rev ETM RIBs(11) 7.008% 6/1/2011 AAA 2,000 2,014,760
Kaleva Norman ETC MI Sch Dist Ref
Bldg & Site(11) 6.00% 5/1/2025 Aaa 600 640,968
Laingsburg MI Cmnty Sch Dist
Sch Bldg & Site Bd 5.25% 5/1/2026 AA 450 481,545
Lake Orion MI Cmnty Sch Dist Ref 5.125% 5/1/2022 AA 550 587,329
Lake Orion MI Cmnty Sch Dist Ser A(11) 6.00% 5/1/2017 AAA 1,335 1,446,366
Lakeview MI Cmnty Sch(11) 5.60% 5/1/2022 AAA 210 214,484
Memphis MI Cmnty Sch Ref(11) 5.25% 5/1/2029 Aaa 150 157,001
MI St Comprehensive Transn Ser B(12) 5.25% 5/15/2020 AAA 1,000 1,074,990
MI St COP ETM(2) Zero Coupon 6/1/2022 AAA 2,000 954,720
Muskegon Heights MI Wtr Sys Ser A(16) 5.625% 11/1/2020 Aaa 300 323,946
Muskegon Heights MI Wtr Sys Ser A(16) 5.625% 11/1/2025 Aaa 320 345,542
Paw Paw MI Pub Sch Dist Sch
Bldg & Site 6.00% 5/1/2030 AA 1,325 1,440,752
Potterville MI Pub Sch(12) 6.00% 5/1/2029 AAA 1,000 1,068,280
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser B 6.50% 7/1/2027 BBB+ 1,000 1,114,910
Puerto Rico Comwlth Ser A 5.50% 10/1/2040 AAA 1,000 1,071,150
South Lyon MI Cmnty Schs(12) 5.50% 5/1/2023 AAA 1,425 1,522,768
---------------
TOTAL 28,360,099
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
109
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
MICHIGAN TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
RESOURCE RECOVERY 1.35%
MI St Strategic Fd Solid Wst Disp Rev
Ref Ltd Oblig Wst Mgmt AMT 4.50% 12/1/2013 BBB $ 1,000 $ 1,002,520
---------------
TRANSPORTATION 1.79%
MI St Comprehensive Transn
Ref Ser A(12) 5.00% 11/1/2021 AAA 700 726,488
Puerto Rico Comwlth Hwy &
Transn Auth Rev PA 1052 RIBs RITES 7.208% 1/1/2010 AAA(a) 500 607,340
---------------
TOTAL 1,333,828
---------------
WATER/SEWER 11.05%
Detroit MI Disp Rev Ref Sr
Lien Ser A(12) 5.00% 7/1/2028 AAA 1,000 1,035,530
Detroit MI Wtr Supply Sys Sr
Lien Ser A(16) 5.00% 7/1/2034 AAA 1,000 1,033,030
Grand Rapids MI Santn Swr Sys(16) 5.00% 1/1/2034 AAA 1,000 1,044,310
Grand Rapids MI Santn Swr Sys
Rev Ref & Impt Ser A(11) 4.75% 1/1/2028 AAA 1,050 1,057,760
Grand Rapids MI Water Supply(11) 5.00% 1/1/2035 AAA 1,000 1,042,210
Lansing MI Bd Wtr & Lt Wtr
Supply Steam & Elec Util Sys(12) 5.00% 7/1/2022 AAA 1,865 1,950,081
MI Muni Bd Auth Rev Drinking
Wtr St Revolving Fd 5.00% 10/1/2024 AAA 1,000 1,045,600
---------------
TOTAL 8,208,521
---------------
TOTAL INVESTMENTS IN MUNICIPAL BONDS 99.84% (cost $70,816,939) 74,168,242
===============
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES 0.16% 119,108
---------------
NET ASSETS 100.00% $ 74,287,350
===============
</Table>
SCHEDULE OF INVESTMENTS (UNAUDITED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2006
<Table>
MUNICIPAL BONDS 100.26%
EDUCATION 19.47%
Allegheny Cnty PA Higher Ed Bldg Auth
Univ Rev Ser A(c) 4.75% 2/15/2026 Baa3 500 489,895
Lehigh Cnty PA Gen Purp Auth
Revs Cedar Crest College(17) 4.625% 4/1/2036 AA 500 483,850
Lehigh Cnty PA Gen Purp Auth
Revs Cedar Crest College(17) 5.00% 4/1/2026 AA 500 515,465
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
110
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Lehigh Cnty PA Gen Purp Auth
Rev Desales Univ Pj(17) 5.125% 12/15/2023 AA $ 1,000 $ 1,043,940
Montgomery Cnty PA Higher Ed &
Hlth Auth Rev Arcadia Univ(17) 4.375% 4/1/2026 AA 355 339,263
PA St Higher Edl Facs Auth College &
Univ Revs Allegheny College 4.80% 5/1/2036 A- 1,000 985,860
PA St Higher Edl Facs Auth College &
Univ Revs Moravian College Pj(17) 5.375% 7/1/2031 AA 1,000 1,042,260
PA St Higher Edl Facs Auth College &
Univ Revs Univ of the Arts(17) 5.625% 3/15/2025 AA 1,000 1,043,520
PA St Higher Edl Facs Auth College &
Univ Revs Univ of the Arts(17) 5.75% 3/15/2030 AA 500 522,345
PA St Higher Edl Facs Auth College &
Univ Revs Univ of the Arts Ser A(c)(17) 4.375% 9/15/2026 AA 1,000 950,010
PA St Higher Edl Facs Auth College &
Univ Revs Ursinus College(17) 5.00% 1/1/2036 AA 700 715,659
PA St Higher Edl Facs Auth College &
Univ Revs Ursinus College(17) 5.50% 1/1/2024 AA 1,000 1,068,770
PA St Higher Edl Facs Auth Rev
Drexel Univ Ser A 5.20% 5/1/2032 A+ 600 628,512
PA St Higher Edl Facs Auth Rev
Lafayette College Pj 6.00% 5/1/2030 AA- 1,425 1,536,620
PA St Higher Edl Facs Auth Rev
York College PA Pj Ser EE 1(19) 5.00% 11/1/2033 AAA 1,000 1,036,140
Philadelphia PA Auth Indl Dev
Rev Ed Cmnty Fgn Med Grads(16) 5.00% 6/1/2015 AAA 250 256,975
Philadelphia PA Sch Dist(11) 5.25% 6/1/2034 AAA 3,000 3,175,080
St Pub Sch Bldg Auth PA
College Rev(2) Zero Coupon 7/15/2014 AAA 295 206,595
St Pub Sch Bldg Auth PA
College Rev(2) Zero Coupon 7/15/2015 AAA 295 196,995
St Pub Sch Bldg Auth PA
College Rev(2) Zero Coupon 7/15/2016 AAA 295 187,658
State Pub Sch Bldg Auth PA
Jefferson Cnty Dubois Tech Sch(11) 5.00% 2/1/2029 AAA 1,000 1,041,370
State Pub Sch Bldg Auth PA
Sch Rev Lease Phil Sch(12) 5.25% 6/1/2027 AAA 1,000 1,058,560
---------------
TOTAL 18,525,342
---------------
GENERAL OBLIGATION 7.47%
Delaware Vly PA Regl Fin Auth
Loc Govt Rev Ser C(2) 7.75% 7/1/2027 AAA 1,000 1,400,120
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
111
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Montgomery Cnty PA 5.00% 9/15/2022 Aaa $ 625 $ 651,256
Pennsbury PA Sch Dist(11) 5.50% 1/15/2020 Aaa 1,000 1,083,640
Pine-Richland Sch Dist PA(12) 5.00% 7/15/2035 AAA 1,000 1,040,600
Puerto Rico Comwlth Unrefunded
Bal Ser A 5.375% 7/1/2028 BBB 1,825 1,892,617
West Middlesex Area Sch Dist PA(11) 5.15% 12/15/2030 AAA 1,000 1,038,880
---------------
TOTAL 7,107,113
---------------
HEALTHCARE 4.73%
Allegheny Cnty PA Hosp Dev
Catholic Hlth East Issue 5.50% 11/15/2032 A1 1,500 1,567,440
Delaware Cnty PA Auth Hosp Rev
Crozer Chester Med Ctr(1)(4) 5.375% 12/1/2018 A 1,000 1,029,130
Montgomery Cnty PA Higher Ed &
Hlth Sys Catholic Hlth East C 5.375% 11/15/2034 A1 1,000 1,045,140
Puerto Rico Indl Tourist Edl
Mutuo Oblig Grp Ser A(16) 6.25% 7/1/2024 AAA 850 859,809
---------------
TOTAL 4,501,519
---------------
HOUSING 2.08%
PA Hsg Fin Agy Sing Fam
Mtg Ser 92-A AMT 4.75% 4/1/2031 AA+ 2,000 1,980,920
---------------
INDUSTRIAL 4.46%
Allegheny Cnty PA Indl Dev
Auth Rev Envr Impt USX Pj 6.10% 7/15/2020 BBB+ 1,000 1,037,130
Childrens Tr Fd Puerto Rico Tob
Settlmnt Rev Asset Bkd Bds 5.50% 5/15/2039 BBB 650 668,271
Philadelphia PA Auth For Indl
Dev Lease Rev Ser B(12) 5.125% 10/1/2026 AAA 1,000 1,046,280
York Cnty PA Ind Dev Auth
Pollutn Ctrl Rev Svc Elec & Gas Ser
A(16) 6.45% 10/1/2019 AAA 1,475 1,491,830
---------------
TOTAL 4,243,511
---------------
LEASE 1.65%
York PA Gen Auth Rev York
City Recreation Corp GTD(2) 5.50% 5/1/2018 AAA 1,475 1,572,129
---------------
MISCELLANEOUS 3.07%
Allegheny Cnty PA Redev Auth
Tax Inc Rev Wtrfrt Pj Ser A 6.30% 12/15/2018 A-(b) 1,000 1,079,920
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
112
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Pub Bldgs Auth
Rev Govt Facs Ser I GTD 5.375% 7/1/2034 BBB $ 1,000 $ 1,058,200
Washington Cnty PA Auth Rev
Cap Fdg Rev Pj & Equip Pg(2) 6.15% 12/1/2029 AAA 730 778,231
---------------
TOTAL 2,916,351
---------------
PRE-REFUNDED 38.68%
Allegheny Cnty PA Port Auth
Spl Rev Transn(16) 6.125% 3/1/2029 AAA 500 538,590
Allegheny Cnty PA San Auth
Swr Rev(16) 5.375% 12/1/2024 AAA 2,000 2,092,520
Bucks Cnty PA Wtr & Swr Auth
Neshaminy Interceptor Swr Sys(2) 5.50% 6/1/2017 Aaa 465 490,682
Mifflin Cnty PA(11) 5.625% 9/1/2031 AAA 2,500 2,724,775
Montgomery Cnty PA Indl Dev
Auth Rev Hill Sch Pj(16) 5.35% 8/15/2027 Aaa 2,250 2,303,257
PA Conv Ctr Auth Rev Ser A ETM(11) 6.70% 9/1/2016 AAA 855 988,406
PA St Higher Edl Facs Auth Rev
Univ of Scranton(2) 5.75% 11/1/2017 AAA 1,000 1,093,020
PA St Higher Edl Facs Auth Rev
Univ Sciences Phil(16) 5.25% 11/1/2025 AAA 1,000 1,040,910
PA St Higher Edl Facs Auth
Rev Drexel Univ 6.00% 5/1/2029 A+ 800 853,424
PA St Tpk Comm(2) 5.50% 7/15/2033 AAA 3,000 3,270,750
Philadelphia PA Gas Wks Rev
12th Ser B ETM(16) 7.00% 5/15/2020 AAA 2,220 2,641,756
Philadelphia PA Sch Dist Ser A(12) 5.50% 2/1/2031 AAA 500 543,720
Philadelphia PA Sch Dist Ser A(12) 5.75% 2/1/2019 AAA 450 489,960
Philadelphia PA Sch Dist Ser A(12) 5.75% 2/1/2020 AAA 250 272,200
Philadelphia PA Sch Dist Ser A(12) 5.75% 2/1/2021 AAA 500 544,400
Philadelphia PA Sch Dist Ser A(12) 5.75% 2/1/2030 AAA 1,250 1,361,000
Philadelphia PA Sch Dist Ser B(11) 5.625% 8/1/2021 AAA 1,000 1,098,710
Philadelphia PA Sch Dist Ser B(11) 5.625% 8/1/2022 AAA 1,000 1,098,710
Plum Boro PA Sch Dist(11) 5.25% 9/15/2030 AAA 1,000 1,072,210
Puerto Rico Comwlth Hwy &
Transn Auth Transn Rev Ser D 5.75% 7/1/2041 AAA 2,000 2,214,680
Puerto Rico Comwlth Hwy
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2026 BBB+ 1,000 1,019,620
Puerto Rico Comwlth Ser A 5.375% 7/1/2028 AAA 925 999,490
Quaker Vly PA Sch Dist(12) 5.50% 4/1/2025 Aaa 800 883,664
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
113
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Radnor Twp PA Sch Dist 5.75% 3/15/2026 Aa3 $ 1,200 $ 1,224,276
Riverside PA Sch Dist(11) 5.50% 10/15/2020 AAA 1,000 1,069,660
St Pub Sch Bldg Auth PA
Northhampton Area Cmnty Colleg(2) 5.75% 3/1/2020 AAA 1,775 1,920,852
St Pub Sch Bldg Auth PA Rev
Del Cnty Cmnty College Pj(16) 5.50% 10/1/2020 AAA 800 849,536
Tredyffrin Easttown PA Sch Dist 5.50% 2/15/2017 Aaa 1,000 1,071,420
York Cnty PA Hosp Auth Rev
York Hosp(2) 5.25% 7/1/2017 AAA 1,000 1,029,940
---------------
TOTAL 36,802,138
---------------
RESOURCE RECOVERY 1.62%
Allegheny Cnty PA San Auth
Swr Rev Ref Ser A(16) 5.00% 12/1/2025 AAA 1,000 1,044,330
PA Econ Dev Fin Auth Solid Wst Disp
Rev Wst Mngmnt Inc Pj A AMT 5.10% 10/1/2027 BBB 500 500,425
---------------
TOTAL 1,544,755
---------------
TRANSPORTATION 12.39%
Allegheny Cnty PA Arpt Rev(16) 5.00% 1/1/2017 AAA 1,000 1,026,930
Delaware River Port Auth PA &
NJ Ref Port Dist Pj Ser A(12) 5.20% 1/1/2027 AAA 1,000 1,053,590
Delaware River Port Auth PA &
NJ Rev(12) 6.00% 1/1/2019 AAA 1,000 1,078,110
PA St Tpk Commn Tpk Rev Ser A(2) 5.25% 12/1/2032 AAA 1,000 1,070,240
Puerto Rico Comwlth Hwy &
Transn Auth Hwy Rev Ser Y 5.50% 7/1/2036 BBB+ 2,000 2,140,460
Puerto Rico Comwlth Hwy &
Transn Auth Rev PA 1052 RIBs RITES 7.208% 1/1/2010 AAA(a) 2,750 3,340,370
Puerto Rico Comwlth Hwy &
Transn Ser G(11) 5.25% 7/1/2020 AAA 1,000 1,077,830
Puerto Rico Port Auth Rev Ser D AMT(11) 7.00% 7/1/2014 AAA 1,000 1,001,940
---------------
TOTAL 11,789,470
---------------
WATER/SEWER 4.64%
Bucks Cnty PA Wtr & Swr Auth
Rev Ser A(2) 5.00% 6/1/2024 AAA 1,000 1,037,450
Delaware Cnty PA Indl Dev Auth
Wtr Facs Aqua PA Inc Pj Ser A AMT(11) 5.00% 11/1/2036 AAA 1,000 1,022,100
Luzerne Cnty PA Indl Dev Auth
PA Amern Wtr Co Ser A AMT(2) 5.10% 9/1/2034 AAA 1,000 1,026,770
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
114
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED)
PENNSYLVANIA TAX-FREE TRUST MARCH 31, 2006
<Table>
<Caption>
CREDIT
RATING: PRINCIPAL
INTEREST MATURITY S&P OR AMOUNT
INVESTMENTS RATE DATE MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
North Huntingdon Twp PA GTD(2) 5.25% 4/1/2019 AAA $ 760 $ 813,215
Saxonburg PA Area Auth Swr &
Wtr Rev(3) 5.00% 3/1/2030 AAA 500 512,945
---------------
TOTAL 4,412,480
---------------
TOTAL INVESTMENTS IN MUNICIPAL BONDS 100.26% (cost $90,267,995) 95,395,728
===============
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS (0.26%) (246,897)
---------------
NET ASSETS 100.00% $ 95,148,831
===============
</Table>
(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.
(d) Effective Maturity date. Average life of sinking fund due to mandatory or
expected principal payments prior to maturity.
+ Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
# Variable Rate Security. The interest rate represents the rate at March 31,
2006.
AMT Income from this security may be subject to Alternative Minimum Tax.
COP Certificates of Participation.
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, 2006.
RITES Residual Interest Tax-Exempt Security. The interest rate is subject to
change periodically and inversely to the prevailing market rate.
NR Not Rated.
Insured or guaranteed by the indicated municipal bond insurance corporation or
Federal agency:
(1) American Capital Access Holdings Ltd.
(2) AMBAC Assurance Corporation
(3) Assured Guarantee Corporation
(4) Certified Bond Insurance
(5) CIFG Guaranty
(6) Custodian Receipt
(7) Department of Veterans Affairs
(8) Federal Home Loan Mortgage Corporation
(9) Federal Housing Administration
(10) Federal National Mortgage Association
(11) Financial Guaranty Insurance Company
(12) Financial Security Assurance Inc.
(13) Government National Mortgage Association
(14) Government National Mortgage Association/Federal National Mortgage
Association
(15) Insurance Bond Certificate
(16) Municipal Bond Investors Assurance Corporation
(17) Radian Asset Assurance, Inc.
(18) Temporary Custodial Receipts
(19) XL Capital Assurance Inc.
SEE NOTES TO FINANCIAL STATEMENTS.
115
<Page>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
MARCH 31, 2006
<Table>
<Caption>
NATIONAL CALIFORNIA
ASSETS:
Investment in securities, at cost $ 541,666,709 $ 171,583,609
- -------------------------------------------------------------------------------------------------
Investment in securities, at value $ 568,765,525 $ 178,945,741
Cash - 46,433
Deposits with brokers for futures collateral 70,200 -
Receivables:
Interest 7,743,735 2,183,995
Investment securities sold 78,706 1,399,975
Capital shares sold 568,426 352,970
From advisor - 202
Variation margin 73,125 -
Prepaid expenses and other assets 38,452 28,565
- -------------------------------------------------------------------------------------------------
TOTAL ASSETS 577,338,169 182,957,881
- -------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 4,730,920 3,613,534
Capital shares reacquired 426,876 290,116
Management fees 218,460 67,585
12b-1 distribution fees 269,360 85,544
Fund administration 20,737 6,485
Directors' fees 321,031 180,430
To bank 614,985 -
Distributions payable 1,742,695 521,114
Accrued expenses and other liabilities 192,038 106,340
- -------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 8,537,102 4,871,148
- -------------------------------------------------------------------------------------------------
NET ASSETS $ 568,801,067 $ 178,086,733
=================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 559,343,891 $ 173,790,746
Distributions in excess of net investment
income (1,815,987) (353,811)
Accumulated net realized loss on
investments and futures contracts (15,922,916) (2,712,334)
Net unrealized appreciation on investments
and futures contracts 27,196,079 7,362,132
- -------------------------------------------------------------------------------------------------
NET ASSETS $ 568,801,067 $ 178,086,733
=================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 498,266,858 $ 163,083,879
Class B Shares $ 28,789,314 -
Class C Shares $ 41,744,895 $ 15,002,854
OUTSTANDING SHARES BY CLASS*:
Class A Shares 43,666,517 15,063,808
Class B Shares 2,515,824 -
Class C Shares 3,652,083 1,384,757
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 11.41 $ 10.83
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 11.79 $ 11.19
Class B Shares-Net asset value $ 11.44 -
Class C Shares-Net asset value $ 11.43 $ 10.83
</Table>
*Lord Abbett Municipal Income Fund, Inc. 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 Lord Abbett Municipal Income
Trust has an unlimited number of shares of beneficial interest authorized.
SEE NOTES TO FINANCIAL STATEMENTS.
116
<Page>
<Table>
<Caption>
CONNECTICUT HAWAII MINNESOTA
ASSETS:
Investment in securities, at cost $ 86,352,051 $ 77,478,475 $ 43,450,640
- --------------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 90,473,010 $ 80,487,179 $ 44,733,311
Cash 99,557 221,248 566,967
Deposits with brokers for futures collateral - - -
Receivables:
Interest 1,259,796 1,196,544 539,982
Investment securities sold - - 2,093,860
Capital shares sold 312,679 132,806 274,653
From advisor 39,153 23,002 -
Variation margin - - -
Prepaid expenses and other assets 17,117 16,735 14,157
- --------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 92,201,312 82,077,514 48,222,930
- --------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased - - 1,850,698
Capital shares reacquired 63,744 8,402 15,968
Management fees 34,947 25,344 17,149
12b-1 distribution fees 40,256 38,811 -
Fund administration 2,899 2,929 1,609
Directors' fees 31,237 23,389 3,629
To bank - - -
Distributions payable 300,669 256,216 142,225
Accrued expenses and other liabilities 45,973 34,484 33,330
- --------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 519,725 389,575 2,064,608
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 91,681,587 $ 81,687,939 $ 46,158,322
====================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 89,633,573 $ 81,359,997 $ 45,560,845
Distributions in excess of net investment
income (364,239) (346,320) (39,652)
Accumulated net realized loss on
investments and futures contracts (1,708,706) (2,334,442) (645,542)
Net unrealized appreciation on investments
and futures contracts 4,120,959 3,008,704 1,282,671
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 91,681,587 $ 81,687,939 $ 46,158,322
====================================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 91,681,587 $ 81,687,939 $ 46,158,322
Class B Shares - - -
Class C Shares - - -
OUTSTANDING SHARES BY CLASS*:
Class A Shares 8,806,018 16,479,955 8,986,259
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 $ 10.41 $ 4.96 $ 5.14
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 10.76 $ 5.13 $ 5.31
Class B Shares-Net asset value - - -
Class C Shares-Net asset value - - -
<Caption>
MISSOURI NEW JERSEY NEW YORK
ASSETS:
Investment in securities, at cost $ 156,973,750 $ 125,952,277 $ 223,413,720
- --------------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 162,594,954 $ 132,879,428 $ 234,306,810
Cash 101,876 120,388 26,437
Deposits with brokers for futures collateral - - -
Receivables:
Interest 1,982,574 1,866,360 3,222,037
Investment securities sold - 476,234 -
Capital shares sold 166,370 40,108 389,846
From advisor 76,062 14,860 72,219
Variation margin - - -
Prepaid expenses and other assets 18,234 17,158 30,324
- --------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 164,940,070 135,414,536 238,047,673
- --------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 4,857,946 1,248,887 -
Capital shares reacquired 5,005 137,197 225,623
Management fees 60,853 51,492 90,911
12b-1 distribution fees 55,778 63,892 118,801
Fund administration 5,753 4,917 8,661
Directors' fees 37,410 50,981 153,944
To bank - - -
Distributions payable 492,044 408,333 763,448
Accrued expenses and other liabilities 48,971 52,217 89,096
- --------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 5,563,760 2,017,916 1,450,484
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 159,376,310 $ 133,396,62 $ 236,597,189
====================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 154,502,542 $ 132,065,30 $ 228,054,908
Distributions in excess of net investment
income (550,311) (444,522) (1,017,593)
Accumulated net realized loss on
investments and futures contracts (197,125) (5,151,315) (1,333,216)
Net unrealized appreciation on investments
and futures contracts 5,621,204 6,927,151 10,893,090
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 159,376,310 $ 133,396,620 $ 236,597,189
====================================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 159,376,31 $ 133,396,62 $ 221,622,554
Class B Shares - - -
Class C Shares - - $ 14,974,635
OUTSTANDING SHARES BY CLASS*:
Class A Shares 30,213,740 26,012,298 19,891,152
Class B Shares - - -
Class C Shares - - 1,344,452
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 5.27 $ 5.13 $ 11.14
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 5.45 $ 5.30 $ 11.51
Class B Shares-Net asset value - - -
Class C Shares-Net asset value - - $ 11.14
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
117
<Page>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)(CONCLUDED)
MARCH 31, 2006
<Table>
<Caption>
TEXAS WASHINGTON
ASSETS:
Investment in securities, at cost $ 74,479,937 $ 42,508,107
- ------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 79,751,820 $ 45,222,154
Cash - 43,654
Receivables:
Interest 1,166,184 700,958
Investment securities sold - -
Capital shares sold 6,000 4,862
From advisor 11,819 -
Prepaid expenses and other assets 15,810 15,433
- ------------------------------------------------------------------------------------------------------
TOTAL ASSETS 80,951,633 45,987,061
- ------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 1,049,715 16,301
Capital shares reacquired 3,648 88,514
Management fees 30,375 18,340
12b-1 distribution fees 67,955 -
Fund administration 2,971 1,649
Directors'/Trustees' fees 35,384 18,505
To bank 33,077 -
Distributions payable 262,424 152,470
Accrued expenses and other liabilities 32,279 29,957
- ------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,517,828 325,736
- ------------------------------------------------------------------------------------------------------
NET ASSETS $ 79,433,805 $ 45,661,325
======================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 78,280,165 $ 45,306,129
Undistributed (distributions in excess of) net investment income (285,477) 164,800
Accumulated net realized loss on investments (3,832,766) (2,523,651)
Net unrealized appreciation (depreciation) on investments 5,271,883 2,714,047
- ------------------------------------------------------------------------------------------------------
NET ASSETS $ 79,433,805 $ 45,661,325
======================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 79,433,805 $ 45,661,325
Class B Shares - -
Class C Shares - -
Class P Shares - -
OUTSTANDING SHARES BY CLASS*:
Class A Shares 7,925,881 9,001,623
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 $ 10.02 $ 5.07
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 10.36 $ 5.24
Class B Shares-Net asset value - -
Class C Shares-Net asset value - -
Class P Shares-Net asset value - -
</Table>
*Lord Abbett Municipal Income Fund, Inc. 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 Lord Abbett Municipal Income
Trust has an unlimited number of shares of beneficial interest authorized.
SEE NOTES TO FINANCIAL STATEMENTS.
118
<Page>
<Table>
<Caption>
INSURED
INTERMEDIATE FLORIDA GEORGIA
ASSETS:
Investment in securities, at cost $ 12,310,779 $ 66,930,737 $ 103,157,942
- -------------------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 12,205,918 $ 71,127,044 $ 106,231,865
Cash 387,212 - 304,114
Receivables:
Interest 155,764 1,224,606 1,651,349
Investment securities sold - 1,182,388 2,110,649
Capital shares sold 49,287 80,168 620,938
From advisor 13,668 18,847 61,558
Prepaid expenses and other assets 21,075 28,713 18,348
- -------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 12,832,924 73,661,766 110,998,82
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 323,409 1,001,370 2,105,462
Capital shares reacquired 45,014 6,000 50,639
Management fees 4,101 28,271 40,796
12b-1 distribution fees 6,960 45,079 26,419
Fund administration 411 2,669 3,832
Directors'/Trustees' fees 4,483 42,564 6,296
To bank - 279,779 -
Distributions payable 29,016 230,017 331,671
Accrued expenses and other liabilities 21,542 38,490 41,021
- -------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 434,936 1,674,239 2,606,136
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 12,397,988 $ 71,987,527 $ 108,392,685
=========================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 12,674,603 $ 74,357,747 $ 105,615,19
Undistributed (distributions in excess of) net investment income 601 (273,008) (20,312)
Accumulated net realized loss on investments (172,355) (6,293,519) (276,119)
Net unrealized appreciation (depreciation) on investments (104,861) 4,196,307 3,073,923
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 12,397,988 $ 71,987,527 $ 108,392,685
=========================================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 8,155,031 $ 65,293,955 $ 108,392,685
Class B Shares $ 754,720 - -
Class C Shares $ 3,477,848 $ 6,693,572 -
Class P Shares $ 10,389 - -
OUTSTANDING SHARES BY CLASS*:
Class A Shares 843,769 13,877,443 19,383,231
Class B Shares 78,186 - -
Class C Shares 360,298 1,421,059 -
Class P Shares 1,074.876 - -
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 9.67 $ 4.71 $ 5.59
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 9.99 $ 4.87 $ 5.78
Class B Shares-Net asset value $ 9.65 - -
Class C Shares-Net asset value $ 9.65 $ 4.71 -
Class P Shares-Net asset value $ 9.67 - -
<Caption>
HIGH YIELD MICHIGAN PENNSYLVANIA
ASSETS:
Investment in securities, at cost $ 732,265,737 $ 70,816,939 $ 90,267,995
- -------------------------------------------------------------------------------------------------------------------------
Investment in securities, at value $ 736,820,664 $ 74,168,242 $ 95,395,728
Cash - 26,752 360,353
Receivables:
Interest 11,504,678 1,198,860 1,264,668
Investment securities sold 85,000 2,139,569 -
Capital shares sold 4,113,422 45,132 5,086
From advisor 620,172 5,194 29,029
Prepaid expenses and other assets 84,982 18,426 19,337
- -------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 753,228,918 77,602,175 97,074,201
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 16,097,000 2,987,368 1,464,234
Capital shares reacquired 442,327 9,534 -
Management fees 285,730 28,393 36,469
12b-1 distribution fees 340,863 848 50,590
Fund administration 22,985 2,671 3,460
Directors'/Trustees' fees 10,571 13,526 25,550
To bank 3,818,944 - -
Distributions payable 2,601,212 236,941 302,413
Accrued expenses and other liabilities 103,421 35,544 42,654
- -------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 23,723,053 3,314,825 1,925,370
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 729,505,865 $ 74,287,350 $ 95,148,831
=========================================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 729,133,073 $ 73,275,762 $ 91,417,038
Undistributed (distributions in excess of) net investment income 60,422 (240,499) (398,755)
Accumulated net realized loss on investments (4,242,557) (2,099,216) (997,185)
Net unrealized appreciation (depreciation) on investments 4,554,927 3,351,303 5,127,733
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 729,505,865 $ 74,287,350 $ 95,148,831
=========================================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 502,192,403 $ 74,287,350 $ 95,148,831
Class B Shares $ 10,960 - -
Class C Shares $ 227,291,532 - -
Class P Shares $ 10,970 - -
OUTSTANDING SHARES BY CLASS*:
Class A Shares 32,574,579 14,230,396 18,248,998
Class B Shares 710.901 - -
Class C Shares 14,745,166 - -
Class P Shares 711.456 - -
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 15.42 $ 5.22 $ 5.21
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 3.25%) $ 15.94 $ 5.40 $ 5.39
Class B Shares-Net asset value $ 15.42 - -
Class C Shares-Net asset value $ 15.41 - -
Class P Shares-Net asset value $ 15.42 - -
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
119
<Page>
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED MARCH 31, 2006
<Table>
<Caption>
NATIONAL CALIFORNIA
INVESTMENT INCOME:
Interest $ 13,917,458 $ 4,047,485
Dividends 63,513 11,803
- ------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 13,980,971 4,059,288
- ------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 1,278,292 398,934
12b-1 distribution plan-Class A 855,737 285,201
12b-1 distribution plan-Class B 150,648 -
12b-1 distribution plan-Class C 206,936 71,662
Shareholder servicing 149,695 40,842
Professional 20,641 20,316
Reports to shareholders 36,494 10,655
Fund administration 113,626 35,461
Custody 36,095 13,254
Directors' fees 9,690 3,038
Registration 19,696 7,295
Other 5,735 1,968
- ------------------------------------------------------------------------------------------------------
Gross expenses 2,883,285 888,626
Expense reductions (See Note 7) (10,252) (3,565)
Expenses assumed by advisor (See Note 3) (8) (5,472)
- ------------------------------------------------------------------------------------------------------
NET EXPENSES 2,873,025 879,589
- ------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 11,107,946 3,179,699
- ------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments and futures contracts (226,293) 53,563
Net change in unrealized appreciation (depreciation) on
investments and futures contracts (6,030,810) (2,040,626)
======================================================================================================
NET REALIZED AND UNREALIZED LOSS (6,257,103) (1,987,063)
======================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,850,843 $ 1,192,636
======================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
120
<Page>
<Table>
<Caption>
CONNECTICUT HAWAII MINNESOTA
INVESTMENT INCOME:
Interest $ 2,183,659 $ 1,868,470 $ 1,053,327
Dividends 6,843 - -
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 2,190,502 1,868,470 1,053,327
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 203,866 179,798 99,372
12b-1 distribution plan-Class A 158,562 137,965 -
12b-1 distribution plan-Class B - - -
12b-1 distribution plan-Class C - - -
Shareholder servicing 21,561 17,807 14,138
Professional 17,149 17,247 16,469
Reports to shareholders 8,956 7,163 6,079
Fund administration 18,121 15,982 8,833
Custody 2,922 2,544 2,294
Directors' fees 1,550 1,323 736
Registration 4,293 3,699 2,935
Other 674 1,003 541
- -------------------------------------------------------------------------------------------------------------------------
Gross expenses 437,654 384,531 151,397
Expense reductions (See Note 7) (2,127) (3,255) (1,826)
Expenses assumed by advisor (See Note 3) (169,899) (62,775) -
- -------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 265,628 318,501 149,571
- -------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,924,874 1,549,969 903,756
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments and futures contracts (117,727) (11,106) 5,453
Net change in unrealized appreciation (depreciation) on
investments and futures contracts (1,091,264) (1,158,768) (413,002)
=========================================================================================================================
NET REALIZED AND UNREALIZED LOSS (1,208,991) (1,169,874) (407,549)
=========================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 715,883 $ 380,095 $ 496,207
=========================================================================================================================
<Caption>
MISSOURI NEW JERSEY NEW YORK
INVESTMENT INCOME:
Interest $ 3,644,913 $ 3,251,882 $ 5,826,329
Dividends - 4,713 30,304
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 3,644,913 3,256,595 5,856,633
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 359,759 303,419 540,331
12b-1 distribution plan-Class A 279,812 240,096 385,552
12b-1 distribution plan-Class B - - -
12b-1 distribution plan-Class C - - 73,323
Shareholder servicing 47,984 38,127 62,001
Professional 19,188 18,273 19,295
Reports to shareholders 11,782 12,589 17,591
Fund administration 31,979 26,970 48,029
Custody 6,878 5,021 23,044
Directors' fees 2,739 2,330 4,134
Registration 5,902 3,930 6,849
Other 1,300 1,398 2,059
- -------------------------------------------------------------------------------------------------------------------------
Gross expenses 767,323 652,153 1,182,208
Expense reductions (See Note 7) (8,708) (2,267) (4,412)
Expenses assumed by advisor (See Note 3) (318,206) (57,076) (305,258)
- -------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 440,409 592,810 872,538
- -------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,204,504 2,663,785 4,984,095
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments and futures contracts (135,960) (25,066) (661,081)
Net change in unrealized appreciation (depreciation) on
investments and futures contracts (1,757,526) (1,839,107) (3,128,847)
=========================================================================================================================
NET REALIZED AND UNREALIZED LOSS (1,893,486) (1,864,173) (3,789,928)
=========================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,311,018 $ 799,612 $ 1,194,167
=========================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
121
<Page>
STATEMENTS OF OPERATIONS (UNAUDITED)(CONCLUDED)
FOR THE SIX MONTHS ENDED MARCH 31, 2006
<Table>
<Caption>
TEXAS WASHINGTON
INVESTMENT INCOME:
Interest $ 1,956,892 $ 1,123,519
Dividends 25,123 5,517
- -----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,982,015 1,129,036
- -----------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 174,055 104,843
12b-1 distribution plan-Class A 134,393 -
12b-1 distribution plan-Class B - -
12b-1 distribution plan-Class C - -
12b-1 distribution plan-Class P - -
Shareholder servicing 17,129 13,760
Professional 17,063 16,527
Reports to shareholders 3,516 3,255
Fund administration 15,471 9,319
Custody 4,290 3,556
Directors'/Trustees' fees 1,295 806
Registration 3,570 1,996
Other 792 603
- -----------------------------------------------------------------------------------------------------------
Gross expenses 371,574 154,665
Expense reductions (See Note 7) (2,498) (1,796)
Expenses assumed by advisor (See Note 3) (25,806) -
- -----------------------------------------------------------------------------------------------------------
NET EXPENSES 343,270 152,869
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,638,745 976,167
- -----------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments 21,569 (87,714)
Net change in unrealized appreciation (depreciation) on investments (1,186,892) (465,776)
===========================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS) (1,165,323) (553,490)
===========================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 473,422 $ 422,677
===========================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
122
<Page>
<Table>
<Caption>
INSURED
INTERMEDIATE FLORIDA GEORGIA
INVESTMENT INCOME:
Interest $ 205,553 $ 1,848,062 $ 2,232,278
Dividends 3,229 14,234 -
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 208,782 1,862,296 2,232,278
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 24,282 167,226 237,613
12b-1 distribution plan-Class A 13,441 134,147 133,040
12b-1 distribution plan-Class B 3,887 - -
12b-1 distribution plan-Class C 18,363 34,087 -
12b-1 distribution plan-Class P 24 - -
Shareholder servicing 3,183 20,744 30,045
Professional 15,653 18,196 21,917
Reports to shareholders 182 4,060 6,216
Fund administration 2,428 14,865 21,121
Custody 1,619 4,838 2,871
Directors'/Trustees' fees 205 1,280 1,750
Registration 28,230 4,649 6,182
Other 402 1,028 975
- ------------------------------------------------------------------------------------------------------------------------------
Gross expenses 111,899 405,120 461,730
Expense reductions (See Note 7) (1,340) (2,614) (4,139)
Expenses assumed by advisor (See Note 3) (78,685) (91,106) (278,469)
- ------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 31,874 311,400 179,122
- ------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 176,908 1,550,896 2,053,156
- ------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments (34,389) (170,921) (212,624)
Net change in unrealized appreciation (depreciation) on investments (119,338) (909,016) (1,011,181)
==============================================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS) (153,727) (1,079,937) (1,223,805)
==============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 23,181 $ 470,959 $ 829,351
==============================================================================================================================
<Caption>
HIGH YIELD MICHIGAN PENNSYLVANIA
INVESTMENT INCOME:
Interest $ 15,525,308 $ 1,762,929 $ 2,265,833
Dividends 31,363 - -
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 15,556,671 1,762,929 2,265,833
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 1,430,605 167,790 215,756
12b-1 distribution plan-Class A 698,089 - 151,136
12b-1 distribution plan-Class B 54 - -
12b-1 distribution plan-Class C 855,064 - -
12b-1 distribution plan-Class P 24 - -
Shareholder servicing 144,622 24,060 27,251
Professional 31,210 16,724 17,407
Reports to shareholders 39,536 4,637 4,553
Fund administration 114,449 14,915 19,178
Custody 42,593 3,251 5,810
Directors'/Trustees' fees 7,390 1,279 1,653
Registration 79,821 4,926 2,833
Other 1,775 745 791
- ------------------------------------------------------------------------------------------------------------------------------
Gross expenses 3,445,232 238,327 446,368
Expense reductions (See Note 7) (48,552) (4,135) (4,356)
Expenses assumed by advisor (See Note 3) (3,226,600) (30,494) (94,618)
- ------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 170,080 203,698 347,394
- ------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 15,386,591 1,559,231 1,918,439
- ------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments (3,505,270) (151,360) (84,944)
Net change in unrealized appreciation (depreciation) on investments 4,383,378 (893,730) (1,340,141)
==============================================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS) 878,108 (1,045,090) (1,425,085)
==============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 16,264,699 $ 514,141 $ 493,354
==============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
123
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE SIX MONTHS ENDED MARCH 31, 2006
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NATIONAL CALIFORNIA
OPERATIONS:
Net investment income $ 11,107,946 $ 3,179,699
Net realized gain (loss) on investments and
futures contracts (226,293) 53,563
Net change in unrealized appreciation (depreciation) on
investments and futures contracts (6,030,810) (2,040,626)
- ------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,850,843 1,192,636
======================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (10,351,105) (3,225,884)
Class B (522,873) -
Class C (722,303) (237,066)
Net realized gain
Class A - -
- ------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (11,596,281) (3,462,950)
======================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 40,121,505 8,222,161
Reinvestment of distributions 7,932,560 2,146,658
Cost of shares reacquired (42,348,806) (10,191,368)
- ------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 5,705,259 177,451
======================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (1,040,179) (2,092,863)
======================================================================================================
NET ASSETS:
Beginning of period 569,841,246 180,179,596
- ------------------------------------------------------------------------------------------------------
END OF PERIOD $ 568,801,067 $ 178,086,733
======================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (1,815,987) $ (353,811)
======================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
124
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS CONNECTICUT HAWAII MINNESOTA
OPERATIONS:
Net investment income $ 1,924,874 $ 1,549,969 $ 903,756
Net realized gain (loss) on investments and
futures contracts (117,727) (11,106) 5,453
Net change in unrealized appreciation (depreciation) on
investments and futures contracts (1,091,264) (1,158,768) (413,002)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 715,883 380,095 496,207
=========================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,990,202) (1,667,441) (919,006)
Class B - - -
Class C - - -
Net realized gain
Class A - - -
- -------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,990,202) (1,667,441) (919,006)
=========================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 5,969,829 9,862,514 6,036,518
Reinvestment of distributions 1,083,644 1,175,976 796,426
Cost of shares reacquired (5,175,603) (6,280,634) (3,434,077)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 1,877,870 4,757,856 3,398,867
=========================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 603,551 3,470,510 2,976,068
=========================================================================================================================
NET ASSETS:
Beginning of period 91,078,036 78,217,429 43,182,254
- -------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 91,681,587 $ 81,687,939 $ 46,158,322
=========================================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (364,239) $ (346,320) $ (39,652)
=========================================================================================================================
<Caption>
INCREASE (DECREASE) IN NET ASSETS MISSOURI NEW JERSEY NEW YORK
OPERATIONS:
Net investment income $ 3,204,504 $ 2,663,785 $ 4,984,095
Net realized gain (loss) on investments and
futures contracts (135,960) (25,066) (661,081)
Net change in unrealized appreciation (depreciation) on
investments and futures contracts (1,757,526) (1,839,107) (3,128,847)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,311,018 799,612 1,194,167
=========================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (3,288,601) (2,740,659) (4,872,141)
Class B - - -
Class C - - (267,768)
Net realized gain
Class A (223,724) - -
- -------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (3,512,325) (2,740,659) (5,139,909)
=========================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 6,255,956 3,507,876 9,380,828
Reinvestment of distributions 2,935,728 1,469,038 3,216,665
Cost of shares reacquired (9,237,934) (6,958,638) (16,154,798)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS (46,250) (1,981,724) (3,557,305)
=========================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (2,247,557) (3,922,771) (7,503,047)
=========================================================================================================================
NET ASSETS:
Beginning of period 161,623,867 137,319,391 244,100,236
- -------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 159,376,310 $ 133,396,620 $ 236,597,189
=========================================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (550,311) $ (444,522) $ (1,017,593)
=========================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
125
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)(CONTINUED)
FOR THE SIX MONTHS ENDED MARCH 31, 2006
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS TEXAS WASHINGTON
OPERATIONS:
Net investment income $ 1,638,745 $ 976,167
Net realized gain (loss) on investments 21,569 (87,714)
Net change in unrealized appreciation (depreciation) on investments (1,186,892) (465,776)
- -----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 473,422 422,677
===========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,700,157) (1,030,610)
Class B - -
Class C - -
Class P - -
- -----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,700,157) (1,030,610)
===========================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 6,750,785 1,299,507
Reinvestment of distributions 1,278,766 792,723
Cost of shares reacquired (3,393,655) (3,532,197)
- -----------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 4,635,896 (1,439,967)
===========================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 3,409,161 (2,047,900)
===========================================================================================================
NET ASSETS:
Beginning of period 76,024,644 47,709,225
- -----------------------------------------------------------------------------------------------------------
END OF PERIOD $ 79,433,805 $ 45,661,325
===========================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ (285,477) $ 164,800
===========================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
126
<Page>
<Table>
<Caption>
INSURED
INCREASE (DECREASE) IN NET ASSETS INTERMEDIATE FLORIDA GEORGIA
OPERATIONS:
Net investment income $ 176,908 $ 1,550,896 $ 2,053,156
Net realized gain (loss) on investments (34,389) (170,921) (212,624)
Net change in unrealized appreciation (depreciation) on investments (119,338) (909,016) (1,011,181)
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 23,181 470,959 829,351
==============================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (133,427) (1,451,330) (2,163,030)
Class B (10,799) - -
Class C (51,067) (126,192) -
Class P (172) - -
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (195,465) (1,577,522) (2,163,030)
==============================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 3,766,603 3,616,263 10,803,918
Reinvestment of distributions 119,940 827,780 1,772,074
Cost of shares reacquired (3,817,632) (6,868,456) (6,736,407)
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 68,911 (2,424,413) 5,839,585
==============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (103,373) (3,530,976) 4,505,906
==============================================================================================================================
NET ASSETS:
Beginning of period 12,501,361 75,518,503 103,886,779
- ------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 12,397,988 $ 71,987,527 $ 108,392,685
==============================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ 601 $ (273,008) $ (20,312)
==============================================================================================================================
<Caption>
INCREASE (DECREASE) IN NET ASSETS HIGH YIELD MICHIGAN PENNSYLVANIA
OPERATIONS:
Net investment income $ 15,386,591 $ 1,559,231 $ 1,918,439
Net realized gain (loss) on investments (3,505,270) (151,360) (84,944)
Net change in unrealized appreciation (depreciation) on investments 4,383,378 (893,730) (1,340,141)
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 16,264,699 514,141 493,354
==============================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (10,520,899) (1,584,048) (2,025,891)
Class B (276) - -
Class C (4,342,734) - -
Class P (285) - -
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (14,864,194) (1,584,048) (2,025,891)
==============================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 338,919,048 4,265,316 2,758,180
Reinvestment of distributions 8,201,490 1,137,687 1,163,478
Cost of shares reacquired (57,303,146) (5,908,056) (4,309,117)
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 289,817,392 (505,053) (387,459)
==============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 291,217,897 (1,574,960) (1,919,996)
==============================================================================================================================
NET ASSETS:
Beginning of period 438,287,968 75,862,310 97,068,827
- ------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 729,505,865 $ 74,287,350 $ 95,148,831
==============================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ 60,422 $ (240,499) $ (398,755)
==============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
127
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2005
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NATIONAL CALIFORNIA
OPERATIONS:
Net investment income $ 22,733,743 $ 7,145,593
Net realized gain (loss) on investments 2,290,948 1,322,239
Net change in unrealized appreciation (depreciation) on investments 28,933 55,949
- -----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 25,053,624 8,523,781
===========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (19,625,604) (6,411,414)
Class B (1,070,508) -
Class C (1,353,655) (441,459)
- -----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (22,049,767) (6,852,873)
===========================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 51,842,238 17,495,318
Reinvestment of distributions 14,994,262 4,038,026
Cost of shares reacquired (78,189,654) (22,248,071)
- -----------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS (11,353,154) (714,727)
===========================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (8,349,297) 956,181
===========================================================================================================
NET ASSETS:
Beginning of year 578,190,543 179,223,415
- -----------------------------------------------------------------------------------------------------------
END OF YEAR $ 569,841,246 $ 180,179,596
===========================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (1,327,652) $ (70,560)
===========================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
128
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS CONNECTICUT HAWAII MINNESOTA
OPERATIONS:
Net investment income $ 3,745,433 $ 2,856,901 $ 1,639,902
Net realized gain (loss) on investments 66,847 157,963 32,645
Net change in unrealized appreciation (depreciation) on investments (523,627) (836,876) 103,849
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,288,653 2,177,988 1,776,396
==============================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (3,778,140) (2,890,561) (1,561,827)
Class B - - -
Class C - - -
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (3,778,140) (2,890,561) (1,561,827)
==============================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 10,013,892 15,258,859 8,422,579
Reinvestment of distributions 2,046,626 1,726,144 1,370,007
Cost of shares reacquired (10,477,934) (7,652,681) (5,312,810)
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 1,582,584 9,332,322 4,479,776
==============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 1,093,097 8,619,749 4,694,345
==============================================================================================================================
NET ASSETS:
Beginning of year 89,984,939 69,597,680 38,487,909
- ------------------------------------------------------------------------------------------------------------------------------
END OF YEAR $ 91,078,036 $ 78,217,429 $ 43,182,254
==============================================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (298,911) $ (228,848) $ (24,402)
==============================================================================================================================
<Caption>
INCREASE (DECREASE) IN NET ASSETS MISSOURI NEW JERSEY NEW YORK
OPERATIONS:
Net investment income $ 6,403,640 $ 5,638,340 $ 10,241,498
Net realized gain (loss) on investments 539,000 488,086 1,951,497
Net change in unrealized appreciation (depreciation) on investments (263,132) 20,011 (3,675,093)
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 6,679,508 6,146,437 8,517,902
==============================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (6,364,236) (5,542,184) (9,760,245)
Class B - - -
Class C - - (479,301)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (6,364,236) (5,542,184) (10,239,546)
==============================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 16,167,260 10,342,291 15,718,365
Reinvestment of distributions 5,356,878 3,087,893 6,319,031
Cost of shares reacquired (16,121,749) (16,176,894) (25,881,447)
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 5,402,389 (2,746,710) (3,844,051)
==============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 5,717,661 (2,142,457) (5,565,695)
==============================================================================================================================
NET ASSETS:
Beginning of year 155,906,206 139,461,848 249,665,931
- ------------------------------------------------------------------------------------------------------------------------------
END OF YEAR $ 161,623,867 $ 137,319,391 $ 244,100,236
==============================================================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME $ (466,214) $ (367,648) $ (861,779)
==============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
129
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
YEAR ENDED SEPTEMBER 30, 2005
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS TEXAS WASHINGTON
OPERATIONS:
Net investment income $ 3,269,965 $ 2,105,496
Net realized gain (loss) on investments 3,114 80,130
Net change in unrealized appreciation (depreciation) on investments (737,907) (239,466)
- -----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,535,172 1,946,160
===========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (3,272,796) (2,194,346)
Class B - -
Class C - -
Class P - -
- -----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (3,272,796) (2,194,346)
===========================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 4,539,764 4,413,729
Reinvestment of distributions 2,472,778 1,669,761
Cost of shares reacquired (5,836,564) (6,960,562)
- -----------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 1,175,978 (877,072)
===========================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 438,354 (1,125,258)
===========================================================================================================
NET ASSETS:
Beginning of year 75,586,290 48,834,483
- -----------------------------------------------------------------------------------------------------------
END OF YEAR $ 76,024,644 $ 47,709,225
===========================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ (224,065) $ 219,243
===========================================================================================================
</Table>
*For the period 12/1/2004 (commencement of investment operations) to 9/30/2005.
SEE NOTES TO FINANCIAL STATEMENTS.
130
<Page>
<Table>
<Caption>
INSURED
INCREASE (DECREASE) IN NET ASSETS INTERMEDIATE FLORIDA GEORGIA
OPERATIONS:
Net investment income $ 294,444 $ 3,205,938 $ 3,764,927
Net realized gain (loss) on investments 2,164 305,623 212,639
Net change in unrealized appreciation (depreciation) on investments (165,184) (896,541) (134,845)
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 131,424 2,615,020 3,842,721
==============================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (190,340) (3,022,602) (3,756,535)
Class B (10,816) - -
Class C (76,343) (231,091) -
Class P (276) - -
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (277,775) (3,253,693) (3,756,535)
==============================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 6,773,004 6,471,601 23,571,680
Reinvestment of distributions 191,241 1,662,964 3,147,985
Cost of shares reacquired (4,294,792) (10,896,560) (12,399,318)
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 2,669,453 (2,761,995) 14,320,347
==============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 2,523,102 (3,400,668) 14,406,533
==============================================================================================================================
NET ASSETS:
Beginning of year 9,978,259 78,919,171 89,480,246
- ------------------------------------------------------------------------------------------------------------------------------
END OF YEAR $ 12,501,361 $ 75,518,503 $ 103,886,779
==============================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ 19,158 $ (246,382) $ 89,562
==============================================================================================================================
<Caption>
INCREASE (DECREASE) IN NET ASSETS HIGH YIELD* MICHIGAN PENNSYLVANIA
OPERATIONS:
Net investment income $ 6,244,293 $ 3,060,313 $ 3,978,249
Net realized gain (loss) on investments (737,293) 69,684 78,667
Net change in unrealized appreciation (depreciation) on investments 171,549 (470,326) 226,197
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 5,678,549 2,659,671 4,283,113
==============================================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (4,944,903) (3,079,723) (4,015,282)
Class B (442) - -
Class C (1,760,470) - -
Class P (447) - -
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (6,706,262) (3,079,723) (4,015,282)
==============================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 448,982,126 8,951,088 8,199,297
Reinvestment of distributions 3,142,187 2,186,282 2,248,356
Cost of shares reacquired (12,808,632) (8,145,069) (9,600,486)
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 439,315,681 2,992,301 847,167
==============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 438,287,968 2,572,249 1,114,998
==============================================================================================================================
NET ASSETS:
Beginning of year - 73,290,061 95,953,829
- ------------------------------------------------------------------------------------------------------------------------------
END OF YEAR $ 438,287,968 $ 75,862,310 $ 97,068,827
==============================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME $ (461,975) $ (215,682) $ (291,303)
==============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
131
<Page>
FINANCIAL HIGHLIGHTS
NATIONAL TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.55 $ 11.49 $ 11.50 $ 11.73 $ 11.33 $ 10.76
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .23 .47 .47 .50 .54 .53
Net realized and
unrealized gain (loss) (.13) .05 (.01) (.22) .40 .59
--------- --------- --------- --------- --------- ---------
Total from investment
operations .10 .52 .46 .28 .94 1.12
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.24) (.46) (.47) (.51) (.54) (.55)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.41 $ 11.55 $ 11.49 $ 11.50 $ 11.73 $ 11.33
========= ========= ========= ========= ========= =========
Total Return(b) .86%(c) 4.53% 4.10% 2.48% 8.57% 10.64%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .46%(c) .93% .96% .98% 1.03% 1.01%
Expenses, excluding expense
reductions and expenses
assumed .46%(c) .94% 1.00% .98% 1.04% 1.06%
Net investment income 1.99%(c) 4.03% 4.07% 4.33% 4.74% 4.78%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 498,267 $ 497,310 $ 500,519 $ 515,694 $ 530,563 $ 512,426
Portfolio turnover rate 42.12% 129.11% 183.06% 209.07% 63.74% 77.46%
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
132
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
NATIONAL TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.58 $ 11.52 $ 11.53 $ 11.76 $ 11.36 $ 10.79
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .19 .39 .39 .42 .47 .46
Net realized and
unrealized gain (loss) (.13) .05 (.01) (.21) .40 .60
--------- --------- --------- --------- --------- ---------
Total from investment
operations .06 .44 .38 .21 .87 1.06
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.20) (.38) (.39) (.44) (.47) (.49)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.44 $ 11.58 $ 11.52 $ 11.53 $ 11.76 $ 11.36
========= ========= ========= ========= ========= =========
Total Return(b) .52%(c) 3.83% 3.40% 1.86% 7.88% 9.96%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .79%(c) 1.58% 1.61% 1.63% 1.65% 1.64%
Expenses, excluding expense
reductions and expenses
assumed .79%(c) 1.59% 1.65% 1.63% 1.66% 1.69%
Net investment income 1.66%(c) 3.38% 3.42% 3.68% 4.12% 4.15%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 28,789 $ 31,209 $ 34,263 $ 39,122 $ 36,250 $ 28,531
Portfolio turnover rate 42.12% 129.11% 183.06% 209.07% 63.74% 77.46%
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
133
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
NATIONAL TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.57 $ 11.50 $ 11.52 $ 11.76 $ 11.35 $ 10.77
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .19 .39 .39 .42 .47 .46
Net realized and
unrealized gain (loss) (.13) .06 (.02) (.22) .41 .60
--------- --------- --------- --------- --------- ---------
Total from investment
operations .06 .45 .37 .20 .88 1.06
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.20) (.38) (.39) (.44) (.47) (.48)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.43 $ 11.57 $ 11.50 $ 11.52 $ 11.76 $ 11.35
========= ========= ========= ========= ========= =========
Total Return(b) .53%(c) 3.93% 3.32% 1.80% 7.95% 10.04%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .79%(c) 1.58% 1.61% 1.63% 1.61% 1.68%
Expenses, excluding expense
reductions and expenses
assumed .79%(c) 1.59% 1.65% 1.63% 1.62% 1.73%
Net investment income (loss) 1.66%(c) 3.38% 3.42% 3.68% 4.16% 4.11%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 41,745 $ 41,322 $ 43,409 $ 49,474 $ 44,727 $ 37,803
Portfolio turnover rate 42.12% 129.11% 183.06% 209.07% 63.74% 77.46%
</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.
134
<Page>
FINANCIAL HIGHLIGHTS
CALIFORNIA TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.96 $ 10.86 $ 10.80 $ 11.19 $ 10.89 $ 10.29
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .20 .44 .43 .46 .52 .51
Net realized and
unrealized gain (loss) (.12) .08 .07 (.36) .29 .61
--------- --------- --------- --------- --------- ---------
Total from investment
operations .08 .52 .50 .10 .81 1.12
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.21) (.42) (.44) (.49) (.51) (.52)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.83 $ 10.96 $ 10.86 $ 10.80 $ 11.19 $ 10.89
========= ========= ========= ========= ========= =========
Total Return(b) .78%(c) 4.88% 4.73% .94% 7.65% 11.09%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .46%(c) .94% .99% .99% 1.03% 1.00%
Expenses, excluding expense
reductions and expenses
assumed .47%(c) .94% .99% .99% 1.04% 1.04%
Net investment income 1.81%(c) 4.01% 3.97% 4.27% 4.82% 4.81%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 163,084 $ 166,227 $ 165,270 $ 178,156 $ 192,181 $ 192,624
Portfolio turnover rate 18.00% 43.42% 28.81% 86.47% 45.31% 72.84%
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
135
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
CALIFORNIA TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.97 $ 10.87 $ 10.80 $ 11.20 $ 10.91 $ 10.30
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .16 .37 .36 .39 .46 .45
Net realized and
unrealized gain (loss) (.12) .08 .08 (.37) .27 .61
--------- --------- --------- --------- --------- ---------
Total from investment
operations .04 .45 .44 .02 .73 1.06
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.18) (.35) (.37) (.42) (.44) (.45)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.83 $ 10.97 $ 10.87 $ 10.80 $ 11.20 $ 10.91
========= ========= ========= ========= ========= =========
Total Return(b) .37%(c) 4.20% 4.14% .26% 6.94% 10.53%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .79%(c) 1.58% 1.63% 1.63% 1.61% 1.55%
Expenses, excluding expense
reductions and expenses
assumed .80%(c) 1.58% 1.63% 1.63% 1.62% 1.59%
Net investment income 1.49%(c) 3.37% 3.32% 3.63% 4.22% 4.26%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 15,003 $ 13,953 $ 13,953 $ 16,183 $ 14,290 $ 11,591
Portfolio turnover rate 18.00% 43.42% 28.81% 86.47% 45.31% 72.84%
</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.
136
<Page>
FINANCIAL HIGHLIGHTS
CONNECTICUT TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.56 $ 10.61 $ 10.55 $ 10.71 $ 10.32 $ 9.79
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .22 .44 .43 .46 .50 .49
Net realized and
unrealized gain (loss) (.14) (.05) .08 (.16) .38 .53
--------- --------- --------- --------- --------- ---------
Total from investment
operations .08 .39 .51 .30 .88 1.02
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.23) (.44) (.45) (.46) (.49) (.49)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.41 $ 10.56 $ 10.61 $ 10.55 $ 10.71 $ 10.32
========= ========= ========= ========= ========= =========
Total Return(b) .76%(c) 3.74% 4.92% 2.95% 8.79% 10.65%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .29%(c) .79% 1.00% 1.01% 1.03% 1.01%
Expenses, excluding expense
reductions and expenses
assumed .48%(c) .96% 1.00% 1.01% 1.04% 1.03%
Net investment income 2.12%(c) 4.11% 4.09% 4.33% 4.82% 4.85%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 91,682 $ 91,078 $ 89,985 $ 96,469 $ 100,358 $ 101,242
Portfolio turnover rate 11.16% 10.25% 20.16% 41.50% 48.64% 21.52%
</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.
SEE NOTES TO FINANCIAL STATEMENTS.
137
<Page>
FINANCIAL HIGHLIGHTS
HAWAII TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 5.04 $ 5.08 $ 5.08 $ 5.20 $ 5.01 $ 4.83
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .10 .20 .21 .21 .23 .22
Net realized and
unrealized gain (loss) (.08) (.04) -(c) (.12) .20 .20
--------- --------- --------- --------- --------- ---------
Total from investment
operations .02 .16 .21 .09 .43 .42
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.10) (.20) (.21) (.21) (.24) (.24)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 4.96 $ 5.04 $ 5.08 $ 5.08 $ 5.20 $ 5.01
========= ========= ========= ========= ========= =========
Total Return(b) .48%(d) 3.28% 4.18% 1.86% 8.78% 8.88%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .40%(d) .95% 1.01% .99% 1.05% 1.04%
Expenses, excluding expense
reductions and expenses
assumed .48%(d) .96% 1.01% 1.00% 1.06% 1.07%
Net investment income 1.93%(d) 3.98% 4.13% 4.20% 4.60% 4.49%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 81,688 $ 78,217 $ 69,598 $ 75,117 $ 79,988 $ 71,022
Portfolio turnover rate 13.31% 18.80% 6.31% 27.90% 30.99% 32.38%
</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) Amount less than $0.01.
(d) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
138
<Page>
FINANCIAL HIGHLIGHTS
MINNESOTA TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 5.19 $ 5.15 $ 5.14 $ 5.18 $ 5.00 $ 4.76
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .11 .21 .20 .21 .24 .25
Net realized and
unrealized gain (loss) (.05) .03 .01 (.03) .18 .24
--------- --------- --------- --------- --------- ---------
Total from investment
operations .06 .24 .21 .18 .42 .49
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.11) (.20) (.20) (.22) (.24) (.25)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.14 $ 5.19 $ 5.15 $ 5.14 $ 5.18 $ 5.00
========= ========= ========= ========= ========= =========
Total Return(b) 1.11%(c) 4.74% 4.24% 3.57% 8.56% 10.57%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions .34%(c) .67% .68% .69% .46% .19%
Expenses, excluding expense
reductions .34%(c) .68% .68% .72% .75% .82%
Net investment income 2.04%(c) 4.05% 4.00% 4.03% 4.79% 5.16%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 46,158 $ 43,182 $ 38,488 $ 37,016 $ 27,568 $ 24,708
Portfolio turnover rate 8.77% 17.42% 24.67% 35.15% 22.33% 24.34%
</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.
139
<Page>
FINANCIAL HIGHLIGHTS
MISSOURI TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 5.35 $ 5.34 $ 5.36 $ 5.41 $ 5.25 $ 4.96
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .11 .22 .20 .22 .23 .25
Net realized and
unrealized gain (loss) (.07) -(c) -(c) (.05) .16 .29
--------- --------- --------- --------- --------- ---------
Total from investment
operations .04 .22 .20 .17 .39 .54
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from:
Net investment income (.11) (.21) (.22) (.22) (.23) (.25)
Net realized gain (.01) - - - - -
--------- --------- --------- --------- --------- ---------
Total distributions (.12) (.21) (.22) (.22) (.23) (.25)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.27 $ 5.35 $ 5.34 $ 5.36 $ 5.41 $ 5.25
========= ========= ========= ========= ========= =========
Total Return(b) .69%(c) 4.26% 3.77% 3.18% 7.67% 11.11%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .27%(c) .67% 1.02% 1.00% 1.03% .89%
Expenses, excluding expense
reductions and expenses
assumed .47%(c) .95% 1.01% 1.01% 1.06% 1.08%
Net investment income 2.00%(c) 4.02% 3.85% 4.19% 4.44% 4.80%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 159,376 $ 161,624 $ 155,906 $ 153,488 $ 145,006 $ 130,122
Portfolio turnover rate 10.20% 29.31% 41.82% 48.47% 80.04% 43.75%
</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.
140
<Page>
FINANCIAL HIGHLIGHTS
NEW JERSEY TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 5.20 $ 5.18 $ 5.20 $ 5.37 $ 5.21 $ 4.96
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .10 .21 .22 .24 .25 .25
Net realized and
unrealized gain (loss) (.07) .02 (.02) (.17) .15 .26
--------- --------- --------- --------- --------- ---------
Total from investment
operations .03 .23 .20 .07 .40 .51
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.10) (.21) (.22) (.24) (.24) (.26)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.13 $ 5.20 $ 5.18 $ 5.20 $ 5.37 $ 5.21
========= ========= ========= ========= ========= =========
Total Return(b) .68%(c) 4.42% 3.89% 1.31% 7.96% 10.41%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .44%(c) .95% 1.00% 1.00% 1.03% .90%
Expenses, excluding expense
reductions and expenses
assumed .48%(c) .95% 1.00% 1.00% 1.05% 1.06%
Net investment income 1.97%(c) 4.02% 4.18% 4.49% 4.77% 4.93%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 133,397 $ 137,319 $ 139,462 $ 153,797 $ 164,733 $ 160,171
Portfolio turnover rate 8.79% 36.15% 32.57% 70.02% 97.76% 101.02%
</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.
141
<Page>
FINANCIAL HIGHLIGHTS
NEW YORK TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.32 $ 11.41 $ 11.42 $ 11.66 $ 11.16 $ 10.53
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .23 .48 .48 .52 .54 .53
Net realized and
unrealized gain (loss) (.17) (.09) -(c) (.24) .49 .64
--------- --------- --------- --------- --------- ---------
Total from investment
operations .06 .39 .48 .28 1.03 1.17
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.24) (.48) (.49) (.52) (.53) (.54)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.14 $ 11.32 $ 11.41 $ 11.42 $ 11.66 $ 11.16
========= ========= ========= ========= ========= =========
Total Return(b) .56%(d) 3.43% 4.33% 2.55% 9.50% 11.35%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .34%(d) .76% .94% .96% 1.03% 1.01%
Expenses, excluding expense
reductions and expenses
assumed .47%(d) .94% .99% .96% 1.04% 1.04%
Net investment income 2.09%(d) 4.16% 4.27% 4.54% 4.80% 4.80%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 221,622 $ 229,598 $ 237,349 $ 247,153 $ 252,831 $ 242,367
Portfolio turnover rate 34.36% 60.01% 48.17% 47.94% 51.72% 70.03%
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
142
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
NEW YORK TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.32 $ 11.40 $ 11.42 $ 11.67 $ 11.17 $ 10.54
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .20 .40 .41 .44 .48 .46
Net realized and
unrealized gain (loss) (.18) (.08) (.01) (.23) .49 .65
--------- --------- --------- --------- --------- ---------
Total from investment
operations .02 .32 .40 .21 .97 1.11
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.20) (.40) (.42) (.46) (.47) (.48)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 11.14 $ 11.32 $ 11.40 $ 11.42 $ 11.67 $ 11.17
========= ========= ========= ========= ========= =========
Total Return(b) .22%(d) 2.87% 3.57% 1.88% 8.90% 10.74%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .67%(d) 1.41% 1.59% 1.63% 1.51% 1.62%
Expenses, excluding expense
reductions and expenses
assumed .80%(d) 1.59% 1.64% 1.63% 1.52% 1.65%
Net investment income 1.76%(d) 3.51% 3.62% 3.87% 4.32% 4.19%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 14,975 $ 14,502 $ 12,317 $ 12,379 $ 8,798 $ 6,662
Portfolio turnover rate 34.36% 60.01% 48.17% 47.94% 51.72% 70.03%
</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) Amount less than $0.01.
(d) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
143
<Page>
FINANCIAL HIGHLIGHTS
TEXAS TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.18 $ 10.28 $ 10.36 $ 10.47 $ 9.99 $ 9.43
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .21 .44 .44 .46 .45 .46
Net realized and
unrealized gain (loss) (.15) (.10) (.07) (.13) .48 .57
--------- --------- --------- --------- --------- ---------
Total from investment
operations .06 .34 .37 .33 .93 1.03
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.22) (.44) (.45) (.44) (.45) (.47)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.02 $ 10.18 $ 10.28 $ 10.36 $ 10.47 $ 9.99
========= ========= ========= ========= ========= =========
Total Return(b) .61%(c) 3.35% 3.62% 3.32% 9.55% 11.30%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .43%(c) .95% 1.06% 1.02% 1.00% .64%
Expenses, excluding expense
reductions and expenses
assumed .47%(c) .98% 1.06% 1.02% 1.05% 1.09%
Net investment income 2.11%(c) 4.28% 4.29% 4.44% 4.49% 4.70%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 79,434 $ 76,025 $ 75,586 $ 79,185 $ 81,369 $ 77,860
Portfolio turnover rate 12.17% 44.71% 21.33% 58.09% 89.30% 108.27%
</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.
144
<Page>
FINANCIAL HIGHLIGHTS
WASHINGTON TAX-FREE FUND
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 5.14 $ 5.16 $ 5.21 $ 5.32 $ 5.15 $ 4.89
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .11 .23 .23 .24 .26 .26
Net realized and
unrealized gain (loss) (.07) (.01) (.04) (.10) .17 .26
--------- --------- --------- --------- --------- ---------
Total from investment
operations .04 .22 .19 .14 .43 .52
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.11) (.24) (.24) (.25) (.26) (.26)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.07 $ 5.14 $ 5.16 $ 5.21 $ 5.32 $ 5.15
========= ========= ========= ========= ========= =========
Total Return(b) .84%(c) 4.24% 3.75% 2.75% 8.71% 10.92%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions .33%(c) .65% .70% .68% .71% .70%
Expenses, excluding expense
reductions .33%(c) .65% .70% .68% .72% .73%
Net investment income 2.09%(c) 4.36% 4.49% 4.68% 5.14% 5.22%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 45,661 $ 47,709 $ 48,834 $ 50,497 $ 49,049 $ 45,883
Portfolio turnover rate 10.82% 39.36% 49.05% 58.05% 40.20% 52.09%
</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.
145
<Page>
FINANCIAL HIGHLIGHTS
INSURED INTERMEDIATE TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 6/23/2003(a)
3/31/2006 --------------------- TO
(UNAUDITED) 2005 2004 9/30/2003
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.80 $ 9.95 $ 9.94 $ 10.00
======== ======== ======== ========
Unrealized depreciation on investments (.01)
--------
NET ASSET VALUE ON SEC EFFECTIVE DATE, JUNE 30, 2003 $ 9.99
========
Investment operations:
Net investment income(b) .15 .30 .27 .06
Net realized and unrealized gain (loss) (.11) (.17) .01 (.05)
-------- -------- -------- --------
Total from investment operations .04 .13 .28 .01
-------- -------- -------- --------
Distributions to shareholders from
net investment income (.17) (.28) (.27) (.06)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 9.67 $ 9.80 $ 9.95 $ 9.94
======== ======== ======== ========
Total Return(d) (.10)%(e)(f)
Total Return(d) .43%(e) 1.36% 2.84% .16%(e)(g)
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense reductions and
expenses assumed .13%(e) .25% .25%+ .07%(e)+
Expenses, excluding expense reductions and
expenses assumed .80%(e) 1.42% 2.35%+ 2.47%(e)+
Net investment income 1.59%(e) 3.01% 2.70%+ .66%(e)+
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 6/23/2003(a)
3/31/2006 --------------------- TO
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 9/30/2003
- ------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 8,155 $ 7,941 $ 6,360 $ 3,673
Portfolio turnover rate 30.64% 42.10% 60.08% 107.99%
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
146
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
INSURED INTERMEDIATE TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 6/23/2003(a)
3/31/2006 --------------------- TO
(UNAUDITED) 2005 2004 9/30/2003
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.79 $ 9.94 $ 9.93 $ 10.00
======== ======== ======== ========
Unrealized depreciation on investments (.02)
--------
NET ASSET VALUE ON SEC EFFECTIVE DATE, JUNE 30, 2003 $ 9.98
========
Investment operations:
Net investment income(b) .12 .21 .20 .05
Net realized and unrealized gain (loss) (.13) (.16) -(c) (.05)
-------- -------- -------- --------
Total from investment operations (.01) .05 .20 -
-------- -------- -------- --------
Distributions to shareholders from
net investment income (.13) (.20) (.19) (.05)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 9.65 $ 9.79 $ 9.94 $ 9.93
======== ======== ======== ========
Total Return(d) (.20)%(e)(f)
Total Return(d) (.05)%(e) .55% 2.09% .04%(e)(g)
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense reductions and
expenses assumed .50%(e) 1.00% 1.00%+ .27%(e)+
Expenses, excluding expense reductions and
expenses assumed 1.13%(e) 2.11% 3.00%+ 2.64%(e)+
Net investment income 1.26%(e) 2.15% 1.95%+ .46%(e)+
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 6/23/2003(a)
3/31/2006 --------------------- TO
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 9/30/2003
- ------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 755 $ 775 $ 311 $ 312
Portfolio turnover rate 30.64% 42.10% 60.08% 107.99%
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
147
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
INSURED INTERMEDIATE TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 6/23/2003(a)
3/31/2006 --------------------- TO
(UNAUDITED) 2005 2004 9/30/2003
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.79 $ 9.94 $ 9.93 $ 10.00
======== ======== ======== ========
Unrealized depreciation on investments (.02)
--------
NET ASSET VALUE ON SEC EFFECTIVE DATE, JUNE 30, 2003 $ 9.98
========
Investment operations:
Net investment income(b) .12 .23 .20 .05
Net realized and unrealized gain (loss) (.13) (.17) -(c) (.05)
-------- -------- -------- --------
Total from investment operations (.01) .06 .20 -
-------- -------- -------- --------
Distributions to shareholders from
net investment income (.13) (.21) (.19) (.05)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 9.65 $ 9.79 $ 9.94 $ 9.93
======== ======== ======== ========
Total Return(d) (.20)%(e)(f)
Total Return(d) (.05)%(e) .61% 2.05% (.04)%(e)(g)
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense reductions and
expenses assumed .50%(e) 1.00% 1.00%+ .27%(e)+
Expenses, excluding expense reductions and
expenses assumed 1.13%(e) 2.06% 3.00%+ 2.64%(e)+
Net investment income 1.22%(e) 2.28% 1.95%+ .46%(e)+
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 6/23/2003(a)
3/31/2006 --------------------- TO
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 9/30/2003
- ------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 3,478 $ 3,775 $ 3,297 $ 313
Portfolio turnover rate 30.64% 42.10% 60.08% 107.99%
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
148
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
INSURED INTERMEDIATE TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 6/23/2003(a)
3/31/2006 --------------------- TO
(UNAUDITED) 2005 2004 9/30/2003
PER SHARE OPERATING PERFORMANCE (CLASS P SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.80 $ 9.95 $ 9.94 $ 10.00
======== ======== ======== ========
Unrealized depreciation on investments (.01)
--------
NET ASSET VALUE ON SEC EFFECTIVE DATE, JUNE 30, 2003 $ 9.99
========
Investment operations:
Net investment income(b) .15 .28 .25 .06
Net realized and unrealized gain (loss) (.12) (.17) .01 (.05)
-------- -------- -------- --------
Total from investment operations .03 .11 .26 .01
-------- -------- -------- --------
Distributions to shareholders from
net investment income (.16) (.26) (.25) (.06)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 9.67 $ 9.80 $ 9.95 $ 9.94
======== ======== ======== ========
Total Return(d) (.10)%(e)(f)
Total Return(d) .33%(e) 1.16% 2.65% .11%(e)(g)
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense reductions and
expenses assumed .23%(e) .45% .45%+ .12%(e)+
Expenses, excluding expense reductions and
expenses assumed .86%(e) 1.50% 2.45%+ 2.49%(e)+
Net investment income 1.49%(e) 2.83% 2.50%+ .61%(e)+
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30 6/23/2003(a)
3/31/2006 --------------------- TO
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 9/30/2003
- ------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 10 $ 10 $ 10 $ 10
Portfolio turnover rate 30.64% 42.10% 60.08% 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 was 6/30/2003.
(b) Calculated using average shares outstanding during the period.
(c) Amount is less than $0.01.
(d) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(e) Not annualized.
(f) Total return for the period 6/23/2003 through 6/30/2003.
(g) Total return for the period 6/30/2003 through 9/30/2003.
SEE NOTES TO FINANCIAL STATEMENTS.
149
<Page>
FINANCIAL HIGHLIGHTS
FLORIDA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 4.78 $ 4.82 $ 4.88 $ 4.97 $ 4.82 $ 4.57
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .10 .20 .20 .21 .23 .23
Net realized and
unrealized gain (loss) (.07) (.03) (.05) (.09) .15 .25
--------- --------- --------- --------- --------- ---------
Total from investment
operations .03 .17 .15 .12 .38 .48
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.10) (.21) (.21) (.21) (.23) (.23)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 4.71 $ 4.78 $ 4.82 $ 4.88 $ 4.97 $ 4.82
========= ========= ========= ========= ========= =========
Total Return(b) .67%(c) 3.48% 3.13% 2.62% 8.10% 10.68%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .38%(c) .76% 1.02% 1.04% 1.07% .99%
Expenses, excluding expense
reductions and expenses
assumed .51%(c) 1.00% 1.02% 1.04% 1.08% 1.05%
Net investment income 2.11%(c) 4.21% 4.24% 4.33% 4.74% 4.77%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 65,294 $ 68,633 $ 72,995 $ 78,278 $ 84,325 $ 83,798
Portfolio turnover rate 29.33% 52.43% 74.33% 86.95% 82.90% 84.37%
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
150
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
FLORIDA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 4.78 $ 4.83 $ 4.89 $ 4.98 $ 4.83 $ 4.58
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .08 .17 .17 .18 .20 .20
Net realized and
unrealized gain (loss) (.06) (.04) (.05) (.09) .14 .25
--------- --------- --------- --------- --------- ---------
Total from investment
operations .02 .13 .12 .09 .34 .45
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.09) (.18) (.18) (.18) (.19) (.20)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 4.71 $ 4.78 $ 4.83 $ 4.89 $ 4.98 $ 4.83
========= ========= ========= ========= ========= =========
Total Return(b) .37%(c) 2.65% 2.44% 1.97% 7.32% 9.99%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .71%(c) 1.40% 1.67% 1.71% 1.73% 1.64%
Expenses, excluding expense
reductions and expenses
assumed .81%(c) 1.62% 1.67% 1.71% 1.74% 1.70%
Net investment income 1.78%(c) 3.55% 3.59% 3.66% 4.08% 4.13%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 6,694 $ 6,886 $ 5,924 $ 6,514 $ 5,927 $ 5,230
Portfolio turnover rate 29.33% 52.43% 74.33% 86.95% 82.90% 84.37%
</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.
151
<Page>
FINANCIAL HIGHLIGHTS
GEORGIA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 5.66 $ 5.65 $ 5.63 $ 5.70 $ 5.44 $ 5.07
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .11 .23 .23 .24 .23 .26
Net realized and
unrealized gain (loss) (.07) .01 .02 (.06) .26 .37
--------- --------- --------- --------- --------- ---------
Total from investment
operations .04 .24 .25 .18 .49 .63
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from:
Net investment income (.11) (.23) (.23) (.23) (.23) (.26)
Net realized gain - - - (.02) - -
--------- --------- --------- --------- --------- ---------
Total distributions (.11) (.23) (.23) (.25) (.23) (.26)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.59 $ 5.66 $ 5.65 $ 5.63 $ 5.70 $ 5.44
========= ========= ========= ========= ========= =========
Total Return(b) .80%(c) 4.24% 4.54% 3.21% 9.27% 12.69%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .17%(c) .61% .67% .68% .69% .31%
Expenses, excluding expense
reductions and expenses
assumed .44%(c) .62% .67% .69% .72% .78%
Net investment income 1.94%(c) 3.98% 4.14% 4.26% 4.24% 4.81%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 108,393 $ 103,887 $ 89,480 $ 85,441 $ 69,836 $ 46,235
Portfolio turnover rate 11.46% 26.01% 21.27% 34.13% 48.66% 43.50%
</Table>
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
152
<Page>
FINANCIAL HIGHLIGHTS
HIGH YIELD MUNICIPAL BOND FUND
<Table>
<Caption>
SIX MONTHS
ENDED 12/1/2004(a)
3/31/2006 TO
(UNAUDITED) 9/30/2005
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.41 $ 15.00
========== ==========
Investment operations:
Net investment income(b) .03
Net realized and unrealized gain .17
----------
Total from investment operations .20
----------
Distributions to shareholders from net investment income (.03)
----------
NET ASSET VALUE ON SEC EFFECTIVE DATE, DECEMBER 30, 2004 $ 15.17
==========
Investment operations:
Net investment income(b) .41 .56
Net realized and unrealized gain (loss) -(h) .31
---------- ----------
Total from investment operations .41 .87
---------- ----------
Distributions to shareholders from net investment income (.40) (.63)
---------- ----------
NET ASSET VALUE, END OF PERIOD $ 15.42 $ 15.41
========== ==========
Total Return(c) 1.36%(d)(e)
Total Return(c) 2.74%(d) 5.79%(d)(f)
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense reductions and expenses assumed .00%(d) .00%(d)(g)
Expenses, excluding expense reductions and expenses assumed .50%(d) 1.00%(i)
Net investment income 2.70%(d) 4.80%(i)
<Caption>
SIX MONTHS
ENDED 12/1/2004(a)
3/31/2006 TO
SUPPLEMENTAL DATA: (UNAUDITED) 9/30/2005
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 502,192 $ 312,948
Portfolio turnover rate 49.92% 112.47%
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
153
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND
<Table>
<Caption>
SIX MONTHS
ENDED 12/1/2004(a)
3/31/2006 TO
(UNAUDITED) 9/30/2005
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.41 $ 15.00
========== ==========
Investment operations:
Net investment income(b) .02
Net realized and unrealized gain .17
----------
Total from investment operations .19
----------
Distributions to shareholders from net investment income (.02)
----------
NET ASSET VALUE ON SEC EFFECTIVE DATE, DECEMBER 30, 2004 $ 15.17
==========
Investment operations:
Net investment income(b) .40 .58
Net realized and unrealized gain (loss) -(h) .29
---------- ----------
Total from investment operations .40 .87
---------- ----------
Distributions to shareholders from net investment income (.39) (.63)
---------- ----------
NET ASSET VALUE, END OF PERIOD $ 15.42 $ 15.41
========== ==========
Total Return(c) 1.29%(d)(e)
Total Return(c) 2.66%(d) 5.80%(d)(f)
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense reductions and expenses
assumed .09%(d) .07%(d)
Expenses, excluding expense reductions and expenses
assumed .81%(d) 1.71%(i)
Net investment income 2.64%(d) 4.74%(i)
<Caption>
SIX MONTHS
ENDED 12/1/2004(a)
3/31/2006 TO
SUPPLEMENTAL DATA: (UNAUDITED) 9/30/2005
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 11 $ 10
Portfolio turnover rate 49.92% 112.47%
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
154
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
HIGH YIELD MUNICIPAL BOND FUND
<Table>
<Caption>
SIX MONTHS
ENDED 12/1/2004(a)
3/31/2006 TO
(UNAUDITED) 9/30/2005
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.41 $ 15.00
========== ==========
Investment operations:
Net investment income(b) .02
Net realized and unrealized gain .17
----------
Total from investment operations .19
----------
Distributions to shareholders from net investment income (.02)
----------
NET ASSET VALUE ON SEC EFFECTIVE DATE, DECEMBER 30, 2004 $ 15.17
==========
Investment operations:
Net investment income(b) .40 .56
Net realized and unrealized gain (loss) (.01) .31
---------- ----------
Total from investment operations .39 .87
---------- ----------
Distributions to shareholders from net investment income (.39) (.63)
---------- ----------
NET ASSET VALUE, END OF PERIOD $ 15.41 $ 15.41
========== ==========
Total Return(c) 1.29%(d)(e)
Total Return(c) 2.59%(d) 5.79%(d)(f)
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense reductions and expenses
assumed .10%(d) .00%(d)(g)
Expenses, excluding expense reductions and expenses
assumed .82%(d) 1.64%(i)
Net investment income 2.60%(d) 4.79%(i)
<Caption>
SIX MONTHS
ENDED 12/1/2004(a)
3/31/2006 TO
SUPPLEMENTAL DATA: (UNAUDITED) 9/30/2005
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 227,292 $ 125,319
Portfolio turnover rate 49.92% 112.47%
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
155
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
HIGH YIELD MUNICIPAL BOND FUND
<Table>
<Caption>
SIX MONTHS
ENDED 12/1/2004(a)
3/31/2006 TO
(UNAUDITED) 9/30/2005
PER SHARE OPERATING PERFORMANCE (CLASS P SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.42 $ 15.00
========== ==========
Investment operations:
Net investment income(b) .03
Net realized and unrealized gain .17
----------
Total from investment operations .20
----------
Distributions to shareholders from net investment income (.03)
----------
NET ASSET VALUE ON SEC EFFECTIVE DATE, DECEMBER 30, 2004 $ 15.17
==========
Investment operations:
Net investment income(b) .43 .58
Net realized and unrealized gain (loss) (.03) .30
---------- ----------
Total from investment operations .40 .88
---------- ----------
Distributions to shareholders from net investment income (.40) (.63)
---------- ----------
NET ASSET VALUE, END OF PERIOD $ 15.42 $ 15.42
========== ==========
Total Return(c) 1.34%(d)(e)
Total Return(c) 2.67%(d) 5.86%(d)(f)
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense reductions and expenses
assumed .00%(d) .03%(d)
Expenses, excluding expense reductions and expenses
assumed .56%(d) 1.20%(i)
Net investment income 2.79%(d) 4.80%(i)
<Caption>
SIX MONTHS
ENDED 12/1/2004(a)
3/31/2006 TO
SUPPLEMENTAL DATA: (UNAUDITED) 9/30/2005
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 11 $ 11
Portfolio turnover rate 49.92% 112.47%
</Table>
(a) Commencement of investment operations was 12/1/2004; SEC effective date was
12/30/2004; date shares first became available to the public was 1/3/2005.
(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 12/1/2004 through 12/30/2004.
(f) Total return for the period 12/30/2004 through 9/30/2005.
(g) Amount is less than 0.01%.
(h) Amount is less than $0.01.
(i) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
156
<Page>
FINANCIAL HIGHLIGHTS
MICHIGAN TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 5.29 $ 5.32 $ 5.36 $ 5.43 $ 5.20 $ 4.87
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .11 .22 .22 .23 .25 .25
Net realized and
unrealized gain (loss) (.07) (.03) (.04) (.07) .23 .33
--------- --------- --------- --------- --------- ---------
Total from investment
operations .04 .19 .18 .16 .48 .58
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.11) (.22) (.22) (.23) (.25) (.25)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.22 $ 5.29 $ 5.32 $ 5.36 $ 5.43 $ 5.20
========= ========= ========= ========= ========= =========
Total Return(b) .79%(c) 3.60% 3.48% 3.16% 9.57% 12.21%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .26%(c) .62% .67% .71% .73% .69%
Expenses, excluding expense
reductions and expenses
assumed .31%(c) .63% .67% .73% .75% .74%
Net investment income 2.09%(c) 4.08% 4.19% 4.28% 4.77% 4.91%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 74,287 $ 75,862 $ 73,290 $ 68,290 $ 58,632 $ 49,330
Portfolio turnover rate 18.10% 39.37% 34.92% 59.46% 48.09% 100.27%
</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.
157
<Page>
FINANCIAL HIGHLIGHTS
PENNSYLVANIA TAX-FREE TRUST
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 5.30 $ 5.28 $ 5.27 $ 5.37 $ 5.18 $ 4.90
========= ========= ========= ========= ========= =========
Investment operations:
Net investment income(a) .10 .22 .22 .23 .24 .25
Net realized and
unrealized gain (loss) (.08) .02 .01 (.10) .19 .28
--------- --------- --------- --------- --------- ---------
Total from investment
operations .02 .24 .23 .13 .43 .53
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income (.11) (.22) (.22) (.23) (.24) (.25)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 5.21 $ 5.30 $ 5.28 $ 5.27 $ 5.37 $ 5.18
========= ========= ========= ========= ========= =========
Total Return(b) .40%(c) 4.57% 4.48% 2.52% 8.57% 11.06%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including expense
reductions and expenses
assumed .36%(c) .88% .97% .94% 1.08% .90%
Expenses, excluding expense
reductions and expenses
assumed .46%(c) .92% .97% .95% 1.10% 1.06%
Net investment income 2.00%(c) 4.06% 4.20% 4.37% 4.66% 4.88%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 9/30
3/31/2006 -----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 95,149 $ 97,069 $ 95,954 $ 99,280 $ 101,502 $ 94,550
Portfolio turnover rate 15.99% 21.18% 27.80% 29.76% 60.87% 65.63%
</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.
158
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
Lord Abbett Municipal Income Fund, Inc. (the "Company") and Lord Abbett
Municipal 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"):
<Table>
<Caption>
FUNDS CLASSES OFFERED
- --------------------------------------------------------------------------------
Lord Abbett National Tax-Free Income Fund ("National") A,B,C and P
Lord Abbett California Tax-Free Income Fund ("California") A,C and P
Lord Abbett New York Tax-Free Income Fund ("New York") A,C and P
Lord Abbett Connecticut Tax-Free Income Fund ("Connecticut") A and P
Lord Abbett Hawaii Tax-Free Income Fund ("Hawaii") A and P
Lord Abbett Minnesota Tax-Free Income Fund ("Minnesota") A and P
Lord Abbett Missouri Tax-Free Income Fund ("Missouri") A and P
Lord Abbett New Jersey Tax-Free Income Fund ("New Jersey") A and P
Lord Abbett Texas Tax-Free Income Fund ("Texas") A and P
Lord Abbett Washington Tax-Free Income Fund ("Washington") A and P
</Table>
The Trust consists of the following six portfolios and their respective classes
(separately, a "Fund" and collectively, the "Funds"):
<Table>
<Caption>
FUNDS CLASSES OFFERED
- --------------------------------------------------------------------------------
Lord Abbett Insured Intermediate Tax-Free Fund ("Insured") A,B,C and P
Lord Abbett High Yield Municipal Bond Fund ("High Yield") A,B,C and P
Florida Series ("Florida") A,C and P
Georgia Series ("Georgia") A and P
Michigan Series ("Michigan") A and P
Pennsylvania Series ("Pennsylvania") A and P
</Table>
Each Fund is non-diversified as defined under the Act, except for National and
Insured. As of the date of this report, only Insured and High Yield have issued
class P shares.
The investment objective of each Fund (except for High Yield) 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, Insured and
High Yield) also seeks as high a level of interest income exempt from the
personal income tax of its state as is consistent with reasonable risk. The
investment objective of High Yield is to seek a high level of income exempt from
Federal income tax. 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 Classes 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 (12 months if shares were
purchased on or after November 1, 2004) following any purchases made without a
sales charge; Class B shares redeemed before the sixth anniversary of purchase;
and Class C shares
159
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
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 the mean between the bid and
asked prices on the basis of prices supplied by independent pricing
services, which reflect broker/dealer supplied valuations and electronic
data processing techniques. Exchange traded options and futures contracts
are valued at the last sale price in the market where they are principally
traded. Securities for which market quotations are not readily available
are valued at fair value as determined by management and approved in good
faith by the Board of Directors. Short-term securities with 60 days or less
remaining to maturity are valued using the amortized cost method, which
approximates current 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) FUTURES CONTRACTS-Futures contracts are marked to market daily, and the
variation margin is recorded as an unrealized gain (loss). When a contract
is closed, a realized gain (loss) is recorded equal to the difference
between the opening and closing value of the contract. Generally, open
futures contracts are marked to market for Federal income tax purposes at
fiscal year-end. As of March 31, 2006, only National had open futures
contracts.
(d) 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.
(e) 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.
(f) EXPENSES-Expenses incurred by the Company and Trust that do not
specifically relate to an individual Fund are generally 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. Classes A, B, C and P shares bear all
expenses and fees relating to their respective 12b-1 Distribution Plans.
160
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
(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 the following annual
rates, for all Funds, other than Insured and High Yield:
<Table>
First $1 Billion .45%
Next $1 Billion .40%
Over $2 Billion .35%
</Table>
The management fee for Insured is based on average daily net assets for each
month at the following annual rates:
<Table>
First $2 Billion .40%
Next $3 Billion .375%
Over $5 Billion .35%
</Table>
The management fee for High Yield is based on average daily net assets for each
month at the following annual rates:
<Table>
First $1 Billion .50%
Next $1 Billion .45%
Over $2 Billion .40%
</Table>
For the fiscal year ending September 30, 2006, Lord Abbett has contractually
agreed to reimburse expenses for each fund, other than Insured and High Yield,
to the extent necessary so that each class' total annual operating expenses do
not exceed the following annual rates:
<Table>
<Caption>
CLASS % OF AVERAGE DAILY NET ASSETS
- --------------------------------------------------------
A 0.95%
B 1.60%
C 1.60%
P 1.05%
</Table>
For the fiscal year ending September 30, 2006, Lord Abbett is voluntarily
reimbursing approximately an additional $392,000, $141,000, $269,000, $184,000,
$61,000, $655,000, $122,000, $729,000, $265,000 and $89,000 of expenses for
Connecticut, Florida, Georgia, Hawaii, Michigan, Missouri, New Jersey, New York,
Pennsylvania and Texas, respectively. In addition, Lord Abbett is voluntarily
reimbursing Georgia's Class A 12b-1 distribution plan fees. Lord Abbett may stop
the voluntary reimbursements at any time.
161
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
For the fiscal year ending September 30, 2006, Lord Abbett has contractually
agreed to reimburse expenses for Insured to the extent necessary so that each
class' net annual operating expenses do not exceed the following annual rates:
<Table>
<Caption>
CLASS % OF AVERAGE DAILY NET ASSETS
- --------------------------------------------------------
A 0.25%
B 1.00%
C 1.00%
P 0.45%
</Table>
For the fiscal year ending September 30, 2006, Lord Abbett has contractually
agreed to reimburse expenses for High Yield to the extent necessary so that each
class' net annual operating expenses do not exceed the following annual rates:
<Table>
<Caption>
CLASS % OF AVERAGE DAILY NET ASSETS
- --------------------------------------------------------
A 0.25%
B 1.00%
C 1.00%
P 0.45%
</Table>
In addition, for the period October 1, 2005 through January 31, 2006 Lord Abbett
voluntarily reimbursed all expenses for Class B and Class C shares. From
February 1, 2006 through March 31, 2006, Lord Abbett voluntarily reimbursed
0.50% of expenses for Class B and Class C shares. Effective April 1, 2006, Lord
Abbett is voluntarily reimbursing 0.25% of expenses for Class B and Class C
shares. For the period October 1, 2005 through March 31, 2006, Lord Abbett
voluntarily reimbursed all expenses for Class A and Class P shares. Effective
April 1, 2006, Lord Abbett discontinued its voluntary reimbursement for Class A
shares and is voluntarily reimbursing 0.20% of expenses for Class P shares. Lord
Abbett may stop the voluntary reimbursements at any time.
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 (the "Plan") with respect to one or
more classes of shares pursuant to Rule 12b-1 of the Act, which provides for the
payment of ongoing distribution and service fees to Lord Abbett Distributor LLC
("Distributor"), an affiliate of Lord Abbett. The fees are accrued daily at
annual rates based upon average daily net assets as follows:
<Table>
<Caption>
FEE CLASS A(1) CLASS B CLASS C CLASS P
- -----------------------------------------------------------------------------------------------------
Service .25%(2) .25% .25% .20%
Distribution .10% .75% .75% .25%
</Table>
(1) The Class A Plans of Minnesota, Washington, 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, 2006, 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
Georgia October 1, 2005
</Table>
162
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
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, 2006:
<Table>
<Caption>
DISTRIBUTOR DEALERS'
COMMISSIONS CONCESSIONS
- ------------------------------------------------------------------------------------------------------
National $ 46,881 $ 220,163
California 14,538 66,798
Connecticut 15,441 69,419
Hawaii 26,640 118,009
Minnesota 15,929 78,143
Missouri 26,450 119,319
New Jersey 7,815 35,400
New York 14,195 64,714
Texas 3,574 17,035
Washington 4,062 22,013
Insured 3,893 16,844
Florida 3,540 17,279
Georgia 36,518 174,110
High Yield 404,229 1,921,519
Michigan 14,800 69,935
Pennsylvania 10,025 44,593
</Table>
One Director/Trustee and certain of the Company's and Trust's officers have an
interest in Lord Abbett.
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, if any, 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 earnings and profits for tax purposes are reported as
a tax return of capital.
163
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
The tax character of the distributions paid during the six months ended March
31, 2006 and the fiscal year ended September 30, 2005 are as follows:
<Table>
<Caption>
NATIONAL CALIFORNIA
- ------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
3/31/2006 YEAR-ENDED 3/31/2006 YEAR-ENDED
(UNAUDITED) 9/30/2005 (UNAUDITED) 9/30/2005
- ------------------------------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $ 11,596,281 $ 22,049,767 $ 3,462,950 $ 6,852,873
- ------------------------------------------------------------------------------------------------------
Total distributions paid $ 11,596,281 $ 22,049,767 $ 3,462,950 $ 6,852,873
======================================================================================================
<Caption>
CONNECTICUT HAWAII
- ------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
3/31/2006 YEAR-ENDED 3/31/2006 YEAR-ENDED
(UNAUDITED) 9/30/2005 (UNAUDITED) 9/30/2005
- ------------------------------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $ 1,990,202 $ 3,778,140 $ 1,667,441 $ 2,890,561
- ------------------------------------------------------------------------------------------------------
Total distributions paid $ 1,990,202 $ 3,778,140 $ 1,667,441 $ 2,890,561
======================================================================================================
<Caption>
MINNESOTA MISSOURI
- ------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
3/31/2006 YEAR-ENDED 3/31/2006 YEAR-ENDED
(UNAUDITED) 9/30/2005 (UNAUDITED) 9/30/2005
- ------------------------------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $ 919,006 $ 1,561,827 $ 3,288,601 $ 6,364,236
Ordinary Income - - 14,665 -
Net long-term capital gains - - 209,059 -
- ------------------------------------------------------------------------------------------------------
Total distributions paid $ 919,006 $ 1,561,827 $ 3,512,325 $ 6,364,236
======================================================================================================
<Caption>
NEW JERSEY NEW YORK
- ------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
3/31/2006 YEAR-ENDED 3/31/2006 YEAR-ENDED
(UNAUDITED) 9/30/2005 (UNAUDITED) 9/30/2005
- ------------------------------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $ 2,740,659 $ 5,542,184 $ 5,139,909 $ 10,239,546
- ------------------------------------------------------------------------------------------------------
Total distributions paid $ 2,740,659 $ 5,542,184 $ 5,139,909 $ 10,239,546
======================================================================================================
<Caption>
TEXAS WASHINGTON
- ------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
3/31/2006 YEAR-ENDED 3/31/2006 YEAR-ENDED
(UNAUDITED) 9/30/2005 (UNAUDITED) 9/30/2005
- ------------------------------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $ 1,700,157 $ 3,272,796 $ 1,030,610 $ 2,194,346
- ------------------------------------------------------------------------------------------------------
Total distributions paid $ 1,700,157 $ 3,272,796 $ 1,030,610 $ 2,194,346
======================================================================================================
</Table>
164
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
<Table>
<Caption>
INSURED FLORIDA
- ------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
3/31/2006 YEAR-ENDED 3/31/2006 YEAR-ENDED
(UNAUDITED) 9/30/2005 (UNAUDITED) 9/30/2005
- ------------------------------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $ 195,465 $ 277,775 $ 1,577,522 $ 3,253,693
- ------------------------------------------------------------------------------------------------------
Total distributions paid $ 195,465 $ 277,775 $ 1,577,522 $ 3,253,693
======================================================================================================
<Caption>
GEORGIA HIGH YIELD
- ------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
3/31/2006 YEAR-ENDED 3/31/2006 PERIOD-ENDED
(UNAUDITED) 9/30/2005 (UNAUDITED) 9/30/2005*
- ------------------------------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $ 2,163,030 $ 3,756,535 $ 14,864,194 $ 6,706,262
- ------------------------------------------------------------------------------------------------------
Total distributions paid $ 2,163,030 $ 3,756,535 $ 14,864,194 $ 6,706,262
======================================================================================================
<Caption>
MICHIGAN PENNSYLVANIA
- ------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
3/31/2006 YEAR-ENDED 3/31/2006 YEAR-ENDED
(UNAUDITED) 9/30/2005 (UNAUDITED) 9/30/2005
- ------------------------------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $ 1,584,048 $ 3,079,723 $ 2,025,891 $ 4,015,282
- ------------------------------------------------------------------------------------------------------
Total distributions paid $ 1,584,048 $ 3,079,723 $ 2,025,891 $ 4,015,282
======================================================================================================
</Table>
* For the period December 1, 2004 (commencement of investment operations) to
September 30, 2005.
As of September 30, 2005, the capital loss carryforwards, along with the related
expiration dates, are as follows:
<Table>
<Caption>
2007 2008 2009 2011 2012 2013 TOTAL
- ------------------------------------------------------------------------------------------------------------------------
National $ - $ 11,236,555 $ 385,136 $ 255,373 $ 3,799,776 $ - $ 15,676,840
California - 1,953,250 - 34,990 777,657 - 2,765,897
Connecticut - 610,291 518,107 - 457,625 - 1,586,023
Hawaii - 461,655 268,000 - 1,593,681 - 2,323,336
Minnesota - - 535,589 - 108,414 - 644,003
New Jersey - 3,141,664 - 405,467 1,576,989 - 5,124,120
New York - - 505,114 25,993 141,028 - 672,135
Texas - 2,722,282 579,267 - 528,705 - 3,830,254
Washington - 947,474 710,842 42,693 496,718 238,210 2,435,937
Insured - - - - 74,668 63,298 137,966
Florida 3,752,714 1,479,660 - 763,887 126,337 - 6,122,598
Georgia - - - - 62,979 - 62,979
Michigan 998,605 711,637 - - 204,581 33,033 1,947,856
Pennsylvania - 683,645 - 1,955 225,617 - 911,217
</Table>
165
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
As of March 31, 2006, 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/(LOSS)
- ----------------------------------------------------------------------------------------
National $ 541,525,734 $ 27,936,042 $ (696,251) $ 27,239,791
California 171,571,042 7,477,074 (102,375) 7,374,699
Connecticut 86,344,111 4,252,079 (123,180) 4,128,899
Hawaii 77,459,850 3,188,942 (161,613) 3,027,329
Minnesota 43,445,936 1,348,632 (61,257) 1,287,375
Missouri 156,998,683 5,940,591 (344,320) 5,596,271
New Jersey 125,907,521 7,104,527 (132,620) 6,971,907
New York 223,391,821 11,003,096 (88,107) 10,914,989
Texas 74,463,736 5,323,051 (34,967) 5,288,084
Washington 42,485,669 2,753,590 (17,105) 2,736,485
Insured 12,310,779 13,450 (118,311) (104,861)
Florida 66,909,592 4,296,152 (78,700) 4,217,452
Georgia 103,154,983 3,302,538 (225,656) 3,076,882
High Yield 732,254,678 9,125,409 (4,559,423) 4,565,986
Michigan 70,793,716 3,444,418 (69,892) 3,374,526
Pennsylvania 90,248,382 5,229,763 (82,417) 5,147,346
</Table>
The difference between book-basis and tax-basis unrealized gains (losses) is
primarily attributable to tax treatment of accretion and other temporary
adjustments.
5. PORTFOLIO SECURITIES TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments)
are as follows:
<Table>
<Caption>
SIX MONTHS ENDED MARCH 31, 2006
- --------------------------------------------------------------------------
PURCHASES SALES
- --------------------------------------------------------------------------
National $ 241,577,155 $ 238,701,338
California 33,381,263 31,800,378
Connecticut 10,049,061 10,246,774
Hawaii 17,444,921 10,451,419
Minnesota 6,384,543 3,797,546
Missouri 21,308,975 16,232,560
New Jersey 11,804,995 15,647,007
New York 83,732,376 81,913,541
Texas 14,832,907 9,236,848
Washington 4,993,400 6,946,018
Insured 4,101,206 3,645,088
Florida 21,466,071 23,191,016
Georgia 18,802,254 11,874,986
High Yield 591,212,414 288,734,442
Michigan 14,609,351 13,427,027
Pennsylvania 15,250,924 15,811,327
</Table>
There were no purchases or sales of U.S. Government securities for the six
months ended March 31, 2006.
166
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
The National Fund had the following futures obligations at March 31, 2006:
<Table>
<Caption>
UNREALIZED
TYPE EXPIRATION CONTRACTS POSITION MARKET VALUE APPRECIATION
- --------------------------------------------------------------------------------------------------------------------
U.S. 30 Year Treasury Bond June 2006 78 Short $ (8,514,188) $ 97,263
</Table>
6. DIRECTORS'/TRUSTEES' REMUNERATION
The Company's and Trust's officers and the one Director/Trustee who are
associated with Lord Abbett do not receive any compensation from the Company or
Trust for serving in such capacities. Outside Directors'/Trustees' fees are
allocated among all Lord Abbett-sponsored funds based on the net assets of each
fund. There is an equity based plan available to all outside Directors/Trustees
under which outside Directors/Trustees must defer receipt of a portion of, and
may elect to defer receipt of an additional portion of Directors'/Trustees'
fees. The deferred amounts are treated as though equivalent dollar amounts had
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 Company and Trust have entered into agreements with their transfer agent and
custodian whereby credits realized as a result of uninvested cash balances are
used to reduce a portion of each Fund's expenses.
8. LINE OF CREDIT
High Yield, along with certain other funds managed by Lord Abbett, has available
a $250,000,000 unsecured revolving credit facility ("Facility") from a
consortium of banks, to be used for temporary or emergency purposes as an
additional source of liquidity to fund redemptions of investor shares. Effective
December 9, 2005, the amount available to the funds under the Facility was
increased from $200,000,000 to $250,000,000. Any borrowings under this Facility
will bear interest at current market rates as defined in the agreement. The fee
for this Facility is an annual rate of .08%. As of March 31, 2006, there were no
loans outstanding pursuant to this Facility nor was the Facility utilized at any
time during the six months ended March 31, 2006.
9. CUSTODIAN AND ACCOUNTING AGENT
State Street Bank & Trust Company ("SSB") is the Funds' custodian and accounting
agent. SSB performs custodial, accounting and recordkeeping functions, relating
to portfolio transactions and calculating each Fund's NAV.
10. 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 and particularly for inverse floaters than for short-term bonds.
As a result, the Funds, which tend to invest in longer-term bonds and
167
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
inverse floaters to a greater degree than some municipal bond funds, normally
will have greater market risk than those funds.
Additional risks that could reduce each Fund's performance or increase
volatility include call risk, governmental risk, legislative risk, management
risk, reclassification 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.
There is the risk that an issuer of a municipal bond may fail to make timely
payments of principal or interest to a Fund, a risk that is greater with
municipal bonds rated below investment grade (sometimes called "lower rated
bonds" or "junk bonds"). High Yield invests a significant portion of its assets
in such bonds. Some issuers, particularly of junk bonds, may default as to
principal and/or interest payments after a Fund purchases their securities. A
default, or concerns in the market about an increase in risk of default or the
deterioration in the creditworthiness of an issuer, may result in losses to the
Fund. Junk bonds are considered predominantly speculative by traditional
investment standards. In addition, the market for lower rated municipal bonds
generally is less liquid than the market for higher rated bonds, subjecting them
to greater price fluctuations which could result in losses.
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, Insured and High Yield, focuses on a
particular state or territory, each Fund's performance may be more affected by
local, state and regional factors than a fund that invests in municipal bonds
issued in many states, such as National, Insured and High Yield. These factors
may, for example, include economic or political 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 or significant world
events may harm the performance of each Fund, and may do so disproportionately
as a result of the corresponding disproportionate impact of such occurrences on
particular state, territory, or local economies.
Each Fund may invest up to 20% of its net assets in private activity bonds
(sometimes called "AMT paper") except High Yield, which may invest up to 100% in
AMT paper. The credit quality of such bonds usually is directly related to the
credit standing of the private user of the facilities.
Each Fund may invest in residual interest bonds ("RIBs") although each Fund
other than High Yield may invest no more than 20% of its assets in such bonds. A
RIB, sometimes referred to as an inverse floater, is a type of "derivative" debt
instrument with a floating or variable interest rate that moves in the opposite
direction of the interest rate on another specific fixed-rate security
("specific fixed-rate security"). Changes in the interest rate on the specific
fixed-rate security inversely affect the residual interest paid on the RIB, with
the result that when interest rates rise, RIBs' interest payments are lowered
and their value falls faster than securities similar to the specific fixed-rate
security. When interest rates fall, not only do RIBs provide interest payments
that are higher than securities similar to the specific fixed-rate security, but
their values also rise faster than such similar securities.
In addition, loss may result from a Fund's investments in certain derivative
transactions such as futures contracts, swap transactions, interest rate caps
and similar instruments, and inverse
168
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
floaters. These instruments may be leveraged so that small changes may produce
disproportionate and substantial losses to the Fund. They also may increase a
Fund's interest rate risk.
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.
11. SUMMARY OF CAPITAL TRANSACTIONS
Transactions in shares of capital stock or shares of beneficial interest are as
follows:
<Table>
<Caption>
SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
----------------------------------------------------------------------------------
CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY
- -----------------------------------------------------------------------------------------------------------------------------
Shares sold 569,113 1,974,956 1,169,835 1,178,909 679,201
Reinvestment of distributions 103,352 235,355 154,496 553,669 284,700
Shares reacquired (493,303) (1,257,846) (665,164) (1,741,846) (1,348,429)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) 179,162 952,465 659,167 (9,268) (384,528)
- -----------------------------------------------------------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
----------------------------------------------------------------------------------
TEXAS WASHINGTON GEORGIA MICHIGAN PENNSYLVANIA
- -----------------------------------------------------------------------------------------------------------------------------
Shares sold 667,949 254,695 1,920,863 811,427 524,963
Reinvestment of distributions 126,652 155,441 315,133 216,638 221,478
Shares reacquired (336,058) (692,272) (1,196,938) (1,125,865) (819,774)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) 458,543 (282,136) 1,039,058 (97,800) (73,333)
- -----------------------------------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED SEPTEMBER 30, 2005
----------------------------------------------------------------------------------
CONNECTICUT HAWAII MINNESOTA MISSOURI NEW JERSEY
- -----------------------------------------------------------------------------------------------------------------------------
Shares sold 942,888 3,005,809 1,617,199 3,011,985 1,987,138
Reinvestment of distributions 192,640 339,910 263,779 999,869 592,791
Shares reacquired (986,441) (1,507,010) (1,022,538) (3,004,221) (3,100,677)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) 149,087 1,838,709 858,440 1,007,633 (520,748)
- -----------------------------------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED SEPTEMBER 30, 2005
----------------------------------------------------------------------------------
TEXAS WASHINGTON GEORGIA MICHIGAN PENNSYLVANIA
- -----------------------------------------------------------------------------------------------------------------------------
Shares sold 441,641 851,879 4,142,897 1,679,661 1,541,500
Reinvestment of distributions 240,825 322,452 554,608 410,376 423,203
Shares reacquired (568,912) (1,347,358) (2,184,770) (1,529,104) (1,807,266)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) 113,554 (173,027) 2,512,735 560,933 157,437
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
Transactions (both shares and dollars) in Funds with multiple classes are as
follows:
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
NATIONAL MARCH 31, 2006 (UNAUDITED) SEPTEMBER 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 2,922,372 $ 33,515,614 3,618,865 $ 41,899,432
Reinvestment of distributions 635,337 7,280,999 1,182,800 13,685,145
Shares reacquired (2,958,194) (33,932,033) (5,302,289) (61,390,981)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) 599,515 $ 6,864,580 (500,624) $ (5,806,404)
- ----------------------------------------------------------------------------------------------------------------------
</Table>
169
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
NATIONAL MARCH 31, 2006 (UNAUDITED) SEPTEMBER 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
CLASS B SHARES
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 191,998 $ 2,208,561 384,421 $ 4,462,574
Reinvestment of distributions 24,426 280,683 49,453 573,512
Shares reacquired (396,232) (4,559,144) (713,322) (8,274,368)
- ----------------------------------------------------------------------------------------------------------------------
Decrease (179,808) $ (2,069,900) (279,448) $ (3,238,282)
- ----------------------------------------------------------------------------------------------------------------------
CLASS C SHARES
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 382,732 $ 4,397,330 471,773 $ 5,480,232
Reinvestment of distributions 32,312 370,878 63,502 735,605
Shares reacquired (335,560) (3,857,629) (736,018) (8,524,305)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) 79,484 $ 910,579 (200,743) $ (2,308,468)
- ----------------------------------------------------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED YEAR ENDED
CALIFORNIA MARCH 31, 2006 (UNAUDITED) SEPTEMBER 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 600,574 $ 6,535,077 1,400,162 $ 15,358,552
Reinvestment of distributions 189,290 2,059,786 353,603 3,872,266
Shares reacquired (886,528) (9,651,495) (1,808,892) (19,818,278)
- ----------------------------------------------------------------------------------------------------------------------
Decrease (96,664) $ (1,056,632) (55,127) $ (587,460)
- ----------------------------------------------------------------------------------------------------------------------
CLASS C SHARES
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 154,650 $ 1,687,084 194,458 $ 2,136,766
Reinvestment of distributions 7,976 86,872 15,129 165,760
Shares reacquired (49,492) (539,873) (221,629) (2,429,793)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) 113,134 $ 1,234,083 (12,042) $ (127,267)
- ----------------------------------------------------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED YEAR ENDED
NEW YORK MARCH 31, 2006 (UNAUDITED) SEPTEMBER 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 673,847 $ 7,563,917 1,027,449 $ 11,714,924
Reinvestment of distributions 274,685 3,082,811 533,770 6,083,437
Shares reacquired (1,330,960) (14,917,152) (2,098,029) (23,928,159)
- ----------------------------------------------------------------------------------------------------------------------
Decrease (382,428) $ (4,270,424) (536,810) $ (6,129,798)
- ----------------------------------------------------------------------------------------------------------------------
CLASS C SHARES
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 162,123 $ 1,816,911 351,373 $ 4,003,441
Reinvestment of distributions 11,931 133,854 20,674 235,594
Shares reacquired (110,462) (1,237,646) (171,253) (1,953,288)
- ----------------------------------------------------------------------------------------------------------------------
Increase 63,592 $ 713,119 200,794 $ 2,285,747
- ----------------------------------------------------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED YEAR ENDED
INSURED MARCH 31, 2006 (UNAUDITED) SEPTEMBER 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 316,129 $ 3,078,042 493,199 $ 4,864,004
Reinvestment of distributions 9,495 92,538 16,319 161,254
Shares reacquired (291,810) (2,845,472) (338,719) (3,356,769)
- ----------------------------------------------------------------------------------------------------------------------
Increase 33,814 $ 325,108 170,799 $ 1,668,489
- ----------------------------------------------------------------------------------------------------------------------
</Table>
170
<Page>
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
INSURED MARCH 31, 2006 (UNAUDITED) SEPTEMBER 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
CLASS B SHARES
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 25,043 $ 243,750 70,689 $ 696,503
Reinvestment of distributions 505 4,918 597 5,890
Shares reacquired (26,512) (258,790) (23,434) (231,254)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) (964) $ (10,122) 47,852 $ 471,139
- ----------------------------------------------------------------------------------------------------------------------
CLASS C SHARES
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 45,662 $ 444,811 123,369 $ 1,212,497
Reinvestment of distributions 2,293 22,318 2,417 23,819
Shares reacquired (73,238) (713,370) (71,966) (706,769)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) (25,283) $ (246,241) 53,820 $ 529,547
- ----------------------------------------------------------------------------------------------------------------------
CLASS P SHARES
- ----------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 17.876 $ 166 28 $ 278
- ----------------------------------------------------------------------------------------------------------------------
Increase 17.876 $ 166 28 $ 278
- ----------------------------------------------------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED YEAR ENDED
FLORIDA MARCH 31, 2006 (UNAUDITED) SEPTEMBER 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
Shares Sold 699,403 $ 3,317,450 980,633 $ 4,723,476
Reinvestment of distributions 165,188 782,978 328,051 1,579,023
Shares reacquired (1,356,989) (6,436,117) (2,095,723) (10,087,661)
- ----------------------------------------------------------------------------------------------------------------------
Decrease (492,398) $ (2,335,689) (787,039) $ (3,785,162)
- ----------------------------------------------------------------------------------------------------------------------
CLASS C SHARES
- ----------------------------------------------------------------------------------------------------------------------
Shares Sold 63,029 $ 298,813 361,986 $ 1,748,125
Reinvestment of distributions 9,449 44,802 17,402 83,941
Shares reacquired (91,074) (432,339) (167,552) (808,899)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) (18,596) $ (88,724) 211,836 $ 1,023,167
- ----------------------------------------------------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED PERIOD ENDED
HIGH YIELD MARCH 31, 2006 (UNAUDITED) SEPTEMBER 30, 2005*
- ----------------------------------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 15,069,631 $ 231,147,409 20,819,162 $ 321,556,851
Reinvestment of distributions 405,299 6,205,576 167,915 2,603,530
Shares reacquired (3,202,953) (49,023,270) (684,475) (10,614,735)
- ----------------------------------------------------------------------------------------------------------------------
Increase 12,271,977 $ 188,329,715 20,302,602 $ 313,545,646
- ----------------------------------------------------------------------------------------------------------------------
CLASS B SHARES
- ----------------------------------------------------------------------------------------------------------------------
Shares sold - $ - 667 $ 10,000
Reinvestment of distributions 17.901 264 26 401
- ----------------------------------------------------------------------------------------------------------------------
Increase 17.901 $ 264 693 $ 10,401
- ----------------------------------------------------------------------------------------------------------------------
CLASS C SHARES
- ----------------------------------------------------------------------------------------------------------------------
Shares sold 7,023,804 $ 107,771,639 8,238,022 $ 127,405,275
Reinvestment of distributions 130,352 1,995,367 34,624 537,851
Shares reacquired (539,906) (8,279,876) (141,730) (2,193,897)
- ----------------------------------------------------------------------------------------------------------------------
Increase 6,614,250 $ 101,487,130 8,130,916 $ 125,749,229
- ----------------------------------------------------------------------------------------------------------------------
CLASS P SHARES
- ----------------------------------------------------------------------------------------------------------------------
Shares sold - $ - 667 $ 10,000
Reinvestment of distributions 18.456 283 26 405
- ----------------------------------------------------------------------------------------------------------------------
Increase 18.456 $ 283 693 $ 10,405
- ----------------------------------------------------------------------------------------------------------------------
</Table>
* For the period December 1, 2004 (commencement of investment operations) to
September 30, 2005.
171
<Page>
APPROVAL OF ADVISORY CONTRACTS
At meetings on December 7 and 8, 2005, the Board of the Company, including all
Directors who are not interested persons, and the Board of the Trust, including
all Trustees who are not interested persons, considered whether to approve the
continuation of the existing management agreements between each of the Funds and
Lord Abbett. In addition to the materials the Boards had reviewed throughout the
course of the year, each Board received materials relating to the management
agreement before the meeting and had the opportunity to ask questions and
request further information in connection with its consideration. The Boards
also took into account familiarity with Lord Abbett gained through their
previous meetings and discussions, and the examination of the portfolio
management team conducted by members of the Contract Committees during the year.
The materials received by the Boards as to each of their respective Funds
included, but were not limited to, (1) information provided by Lipper Analytical
Services, Inc. regarding the investment performance of the Fund compared to the
investment performance of a group of funds with substantially similar investment
objectives (the "performance universe") and to the investment performance of an
appropriate securities index (if such an index existed), for various time
periods each ending September 30, 2005, (2) information on the effective
management fee rates and expense ratios for funds with similar objectives and
similar size (the "peer group"), (3) sales and redemption information for the
Fund, (4) information regarding Lord Abbett's financial condition, (5) an
analysis of the relative profitability of the management agreement to Lord
Abbett, (6) information regarding the distribution arrangements of the Fund, and
(7) information regarding the personnel and other resources devoted by Lord
Abbett to managing the Fund.
INVESTMENT MANAGEMENT SERVICES GENERALLY. The Boards considered the investment
management services provided by Lord Abbett to each of their respective Funds,
including investment research, portfolio management, and trading, and Lord
Abbett's commitment to compliance with all relevant legal requirements. The
Boards also observed that Lord Abbett was solely engaged in the investment
management business and accordingly did not experience the conflicts of interest
resulting from being engaged in other lines of business. The Boards noted that
Lord Abbett did not use brokerage commissions to purchase third-party research.
The Boards also considered the investment advisory services provided by Lord
Abbett to other clients, the fees charged for the services, and the differences
in the nature of the services provided to the Fund and other Lord Abbett Funds,
on the one hand, and the services provided to other clients, on the other.
INVESTMENT PERFORMANCE AND COMPLIANCE. The Boards reviewed the investment
performance of each of their respective Funds as well as the performance of the
performance universe of funds, both in terms of total return and in terms of
other statistical measures.
The Board of the Company observed that the National Tax-Free Fund's performance
of the Class A shares of the Fund was in the first quintile of its performance
universe for the nine-month and one-year periods, and in the second quintile for
the three-, five-, and ten-year periods. The Board also observed that the
performance was above that of the Lipper General Municipal Debt Index for the
nine-month, one-year, five-year, and ten-year periods, and below that of the
Index for the three-year period.
The Board of the Company observed that the performance of the Class A shares of
the California Tax-Free Fund was in the second quintile of its performance
universe for the nine-month, one-year, and five-year periods and in the third
quintile for the three- and ten-year periods. The Board also
172
<Page>
observed that the performance was above that of the Lipper California Municipal
Debt Funds Index for the nine-month, one-year, and five-year periods and below
that of the Index for the three- and ten-year periods.
The Board of the Company observed that the performance of the Class A shares of
the Connecticut Tax-Free Fund was in the first quintile of its performance
universe in the nine-month, one-year, three-year, and five-year periods and in
the second quintile for the ten-year period. The Board also observed that there
was no Lipper index for the Connecticut municipal debt investment objective.
The Board of the Trust observed that the performance of the Class A shares of
the Florida Tax-Free Fund was in the third quintile of its performance universe
for the nine-month and one-year periods, in the fourth quintile for the three-
and ten-year periods, and in the second quintile for the five-year period. The
Board also observed that the performance was below that of the Lipper Florida
Municipal Debt Funds Index for each period.
The Board of the Trust observed that the performance of the Class A shares of
the Georgia Tax-Free Fund ranked in the first quintile of its performance
universe for the nine-month, one-year, three-year, five-year, and ten-year
periods. The Board also observed that there was no Lipper index for the Georgia
municipal debt investment objective.
The Board of the Company observed that the performance of the Class A shares of
the Hawaii Tax-Free Fund was in the first quintile of its performance universe
for the nine-month and one-year periods, in the fourth quintile in the
three-year period, in the third quintile for the five-year period, and in the
second quintile for the ten-year period. The Board also observed that there was
no Lipper index for the Hawaii municipal debt investment objective.
The Board of the Trust observed that the performance of the Class A shares of
the Michigan Tax-Free Fund was in the second quintile of its performance
universe in the nine-month, one-year, and three-year periods, and in the first
quintile in the five- and ten-year periods. The Board also observed that the
performance was above that of the Lipper Michigan Municipal Debt Funds Index in
each period.
The Board of the Company observed that the performance of the Class A shares of
the Minnesota Tax-Free Fund was in the second quintile of its performance
universe for the nine-month period, and in the first quintile for the one-,
three-, five-, and 10-year periods. The Board also observed that the performance
was above that of the Lipper Minnesota Municipal Debt Funds Index for each
period.
The Board of the Company observed that the performance of the Class A shares of
the Missouri Tax-Free Fund was in the second quintile for the nine-month,
one-year, three-year, five-year, and ten-year periods. The Board also observed
that there was no Lipper index for the Missouri municipal debt investment
objective.
The Board of the Company observed that the performance of the Class A shares of
the New Jersey Tax-Free Fund was in the second quintile of its performance
universe for the nine-month, one-year, and ten-year periods and in the third
quintile for the three- and five-year periods. The Board also observed that the
performance of the Fund was above that of the Lipper New Jersey Municipal Debt
Funds index for the nine-month, one-year, and ten-year periods and below that of
the Index for the three- and five-year periods.
The Board of the Company observed that the performance of the Class A shares of
the New York Tax-Free Fund was in the third quintile of its performance universe
for the nine-month, one-year,
173
<Page>
and three-year periods and in the second quintile for the five- and ten-year
periods. The Board also observed that the performance was below that of the
Lipper New York Municipal Debt Funds Index for the nine-month, one-year, and
three-year periods and above that of the Index for the five- and ten-year
periods.
The Board of the Company observed that the performance of the Class A shares of
the Pennsylvania Tax-Free Fund was in the second quintile of its performance
universe for the nine-month, one-year, and three-year periods and in the first
quintile for the five and ten-year periods. The Board also observed that the
performance was below that of the Lipper Pennsylvania Municipal Debt Funds Index
for the nine-month, one-year, and three-year periods and above that of the Index
for the five- and ten-year periods.
The Board of the Company observed that there were only a small number of mutual
funds with an investment objective of investing in Texas municipal debt and no
Lipper index for such an investment objective. Accordingly, it was difficult to
draw conclusions regarding the relative performance of the Texas Tax-Free Fund.
The Board of the Company observed that the performance of the Class A shares of
the Washington Tax-Free Fund was in the first quintile of its performance
universe for the nine-month, one-year, five-year and ten-year periods and in the
second quintile for the three-year period. The Board also observed that there
was no Lipper index for a Washington State municipal debt investment objective.
The Board of the Trust noted that the Insured Intermediate Tax-Free Fund had
commenced investment operations on June 30, 2003 and thus it was difficult to
draw definitive conclusions regarding its relative investment performance. The
Board observed that the investment performance of the Class A shares of the Fund
was in the fifth quintile of its performance universe for the nine-month and
one-year periods and for the period since inception. The Board also observed
that the performance was below that of the Lipper Insured Municipal Funds Index
for each period.
The Board of the Trust noted that the High Yield Municipal Bond Fund had
commenced investment operations in December 2004 and thus it was not possible to
draw definitive conclusions regarding its relative investment performance. The
Board observed that the investment performance of the Class A shares of the Fund
were in the first quintile of its performance universe and above that of the
Lipper High Yield Municipal Debt Fund Index for the nine-month period.
LORD ABBETT'S PERSONNEL AND METHODS. As to each of their respective Funds, the
Boards considered the qualifications of the personnel providing investment
management services to the Funds, in light of their investment objectives and
disciplines. Among other things, they considered the size, experience, and
turnover rates of Lord Abbett's investment management staff, Lord Abbett's
investment methodology and philosophy, and Lord Abbett's approach to recruiting,
training, and retaining investment management personnel. The Boards also
discussed recent changes made by Lord Abbett with regard to the senior
management personnel working on municipal securities investments, and in
particular the decision to put the municipal securities investment personnel
under the supervision of Robert Gerber, Lord Abbett's Director of Taxable Income
Management, and the decision to put Peter Scott Smith in charge of the
day-to-day management of the Funds. The Boards determined that Lord Abbett had
the expertise and resources to manage the Funds effectively.
174
<Page>
NATURE AND QUALITY OF OTHER SERVICES. As to each of their respective Funds, the
Boards considered the nature, quality, costs, and extent of administrative and
other services performed by Lord Abbett and Lord Abbett Distributor and the
nature and extent of Lord Abbett supervision of third party service providers,
including the Funds' transfer agent and custodian.
EXPENSES. As to each of their respective Funds, the Boards considered the
expense ratio of the Funds and the expense ratios of peer groups. The Boards
also considered the amount and nature of the fees paid by shareholders.
As to the National Tax-Free Fund, the Board of the Company observed that Lord
Abbett had implemented a total expense cap that limited the total expense ratio
of Class A to not more than 0.95% and the total expense ratios of Classes B and
C to not more than 1.60%. The Board observed that the contractual and actual
management and administrative services fees were approximately three basis
points below the median of the peer group. The Board observed that the total
expense ratio of Class A was approximately three basis points above the median
of the peer group, and that the total expense ratios of Classes B and C were
approximately five basis points below the median of the peer group.
As to the California Tax-Free Fund, the Board of the Company observed that Lord
Abbett had implemented an expense cap limiting the total expense ratio of Class
A to not more than 0.95% and total expense ratio of Class C to not more than
1.60%. The Board observed that the contractual and actual management and
administrative services fees were approximately one basis point below the median
of the peer group. The Board observed that the total expense ratio of Class A
was approximately six basis points above the median of the peer group and that
the total expense ratio of Class C was less than one basis point below the
median of the peer group.
As to the Connecticut Tax-Free Fund, the Board of the Company observed that Lord
Abbett had implemented an expense cap that limited the total expense ratio to
not more than 0.95%. The Board observed that the contractual and actual
management and administrative services fees were approximately eight basis
points below the median of the peer group. The Board observed that the actual
total expense ratio of the Fund was approximately eleven basis points below the
median of the peer group.
As to the Florida Tax-Free Fund, the Board of the Trust observed that Lord
Abbett had implemented an expense cap that limited the total expense ratio of
Class A to not more than 0.95% and the total expense ratio of Class C to not
more than 1.60%. The Board observed that the contractual management and
administrative services fees were approximately one basis point below the median
of the peer group. The Board also observed that the actual management and
administrative services fees were approximately eleven basis points above the
median of the peer group. The Board also observed that the actual total expense
ratio of Class A was approximately ten basis points below the median of the peer
group and that the actual total expense ratio of Class C was approximately four
basis points below the median of the peer group.
As to the Georgia Tax-Free Fund, the Board of the Trust observed that the
contractual and actual management and administrative services fees were
approximately one basis point below the median of the peer group. The Board also
observed that the actual total expense ratio was approximately seventeen basis
points below the median of the peer group.
As to the Hawaii Tax-Free Fund, the Board of the Company observed that Lord
Abbett had implemented an expense cap that limited the total expense ratio to
not more than 0.95%. The Board observed that the contractual and actual
management and administrative services fees
175
<Page>
were approximately two basis points above the median of the peer group. The
Board also observed that the actual total expense ratio of the Fund was
approximately one basis point below the median of the peer group.
As to the Michigan Tax-Free Fund, the Board of the Trust observed that the
contractual and actual management and administrative services fees were
approximately the same as the median of the peer group. The Board observed that
the actual total expense ratio of the Fund was approximately twenty basis points
below the median of the peer group.
As to the Minnesota Tax-Free Fund, the Board of the Company observed that the
contractual and actual management and administrative services were approximately
two basis points above the median of the peer group. The Board also observed
that the total expense ratio of the Fund was approximately twenty-one basis
points below the median of the peer group.
As to the Missouri Tax-Free Fund, the Board of the Company observed that Lord
Abbett had implemented an expense cap that limited the total expense ratio to
not more than 0.95%. The Board observed that the contractual management and
administrative services fees were approximately ten basis points above the
median of the peer group and that the actual management and administrative
services fees were approximately seven basis points below the median of the peer
group. The Board also observed that the total expense ratio of the Fund was
approximately sixteen basis points below the median of the peer group.
As to the New Jersey Tax-Free Fund, the Board of the Company observed that Lord
Abbett had implemented an expense cap that limited the total expense ratio to
not more than 0.95%. The Board observed that the contractual and actual
management and administrative services were approximately one basis point below
the median of the peer group. The Board also observed that the total expense
ratio of the Fund was approximately three basis points above the median of the
peer group.
As to the New York Tax-Free Fund, the Board of the Company observed that Lord
Abbett had implemented an expense cap that limited the total expense ratio of
Class A to not more than 0.95% and the total expense ratio of Class C to not
more than 1.60%. The Board observed that the contractual and actual and
administrative services fees were approximately three basis points below the
median of the peer group. The Board also observed that the total expense ratio
of Class A was approximately six basis points below the median of the peer group
and that the total expense ratio of Class C was approximately the same as the
median of the peer group.
As to the Pennsylvania Tax-Free Fund, the Board of the Trust observed that Lord
Abbett had implemented an expense cap that limited the total expense ratio to
not more than 0.95%. The Board observed that the contractual and actual
management and administrative services fees were approximately one basis point
below the median of the peer group. The Board also observed that the actual
total expense ratio of the Fund was approximately five basis points below the
median of the peer group.
As to the Texas Tax-Free Income Fund, the Board of the Company observed that
Lord Abbett had implemented an expense cap that limited the total expense ratio
to not more than 0.95%. The Board observed that the contractual management and
administrative services fees were approximately three basis points above the
median of the peer group and that the actual management and administrative
services fees were approximately three basis points above the median of the peer
group. The Board also observed that the total expense ratio was approximately
three basis points below the median of the peer group.
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As to the Washington Tax-Free Fund, the Board of the Company observed that Lord
Abbett had implemented an expense cap that limited the total expense ratio to
not more than 0.95%. The Board observed that the contractual and actual
management and administrative services fees were approximately one basis point
below the median of the peer group. The Board also observed that the total
expense ratio was approximately sixteen basis points below the median of the
peer group.
As to the Insured Intermediate Tax-Free Fund, the Board of the Trust observed
that the contractual management and administrative services fees were
approximately six basis points below the median of the peer group. The Board
observed that the Fund benefited from a reimbursement of its entire management
fee and nonmanagement expenses, so that its only expenses were 12b-1 fees. The
Board observed that the total expense ratio of Class A was approximately seventy
basis points below the median of the peer group, the total expense ratio of
Classes B and C were fifty-nine basis points below the median of the peer group,
and the total expense ratio of Class P was fourteen basis points below the
median of the peer group.
As to the High Yield Municipal Bond Fund, the Board of the Trust observed that
the contractual management and administrative services fees were approximately
three basis points above the median of the peer group. The Board observed that
the Fund benefited from a reimbursement of all of its expenses. The Board
observed that the total expense ratio of Class A was approximately ninety-one
basis points below the median of the peer group, the total expense ratios of
Classes B and C were approximately one-hundred sixty-seven basis points below
the median of the peer group, and the total expense ratio of Class P was
approximately seventy-two basis points below the median of the peer group.
PROFITABILITY. As to each of their respective Funds, the Boards considered the
level of Lord Abbett's profits in managing the Funds, including a review of Lord
Abbett's methodology for allocating its costs to its management of the Funds.
The Boards concluded that the allocation methodology had a reasonable basis and
was appropriate. The Boards considered the profits realized by Lord Abbett in
connection with the operation of the Funds and whether the amount of profit was
fair for the management of the Funds. The Boards also considered the profits
realized from other businesses of Lord Abbett, which may benefit from or be
related to the Funds' business. The Boards considered Lord Abbett's profit
margins in comparison with available industry data, both accounting for and
ignoring marketing and distribution expenses, and how those profit margins could
affect Lord Abbett's ability to recruit and retain investment personnel. The
Boards recognized that Lord Abbett's profitability was a factor in enabling it
to attract and retain qualified investment management personnel to provide
services to the Funds. The Boards noted that Lord Abbett's profitability had
increased, in part due to an increase in assets under management, but concluded
that Lord Abbett's profitability overall and with respect to the Funds was not
excessive.
ECONOMIES OF SCALE. As to each of their respective Funds, the Boards considered
whether there had been any economies of scale in managing the Funds, whether the
Funds had appropriately benefited from any such economies of scale, and whether
there was potential for realization of any further economies of scale. The
Boards concluded that the existing advisory fee schedule adequately addressed
any economies of scale in managing the Funds.
OTHER BENEFITS TO LORD ABBETT. As to each of their respective Funds, the Boards
considered the character and amount of fees paid by the Funds and the Funds'
shareholders to Lord Abbett and Lord Abbett Distributor for services other than
investment advisory services. The Boards also
177
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considered the revenues and profitability of Lord Abbett's investment advisory
business apart from its mutual fund business, and the intangible benefits
enjoyed by Lord Abbett by virtue of its relationship with the Fund. The Boards
observed that Lord Abbett Distributor receives 12b-1 fees from the Funds as to
shares held in accounts for which there is no other broker of record, may retain
a portion of the 12b-1 fees from the Funds, and receives a portion of the sales
charges on sales and redemptions of some classes of shares. In addition, Lord
Abbett accrues certain benefits for its business of providing investment advice
to clients other than the Funds, but that that business also benefits the Funds.
The Boards also noted that Lord Abbett, as disclosed in the prospectus of each
Fund, has entered into revenue sharing arrangements with certain entities that
distribute shares of the Funds.
ALTERNATIVE ARRANGEMENTS. As to each of their respective Funds, the Boards
considered whether, instead of approving continuation of the management
agreement, employing one or more alternative arrangements might be in the best
interests of the Funds, such as continuing to employ Lord Abbett, but on
different terms.
In considering whether to approve the continuation of the management agreements,
the Boards did not identify any single factor as paramount or controlling. This
summary does not discuss in detail all matters considered. After considering all
of the relevant factors, the Board unanimously found that continuation of the
existing management agreements were in the best interests of each of the Funds
and their shareholders and voted unanimously to approve the continuation of the
management agreements.
178
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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 semiannual
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, PROCEDURES AND RECORDS
A description of the policies and procedures that Lord Abbett uses to vote
proxies related to each Funds' portfolio securities, and information on how Lord
Abbett voted the Funds' proxies during the 12-month period ended June 30, 2005
are available without charge, upon request, (i) by calling 888-522-2388; (ii) on
Lord Abbett's website at www.LordAbbett.com; and (iii) on the Securities and
Exchange Commission's ("SEC") website at www.sec.gov.
SHAREHOLDER REPORTS AND QUARTERLY PORTFOLIO DISCLOSURE
The Company and Trust are required to file their complete schedule of portfolio
holdings with the SEC for their first and third fiscal quarters on Form N-Q.
Copies of the filings are available without charge, upon request, on the SEC's
website at www.sec.gov and may be available by calling Lord Abbett at
800-821-5129. You can also obtain copies of Form N-Q by (i) visiting the SEC's
Public Reference Room in Washington, DC (information on the operation of the
Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending
your request and duplicating fee to the SEC's Public Reference Room, Washington,
DC 20549-0102; or (iii) sending your request electronically to
publicinfo@sec.gov.
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[LORD ABBETT(R) LOGO]
<Table>
Lord Abbett Municipal Income Fund Inc.
Lord Abbett National Tax-Free Income Fund
Lord Abbett California Tax-Free Income Fund
Lord Abbett Connecticut Tax-Free Income Fund
Lord Abbett Hawaii Tax-Free Income Fund
Lord Abbett Minnesota Tax-Free Income Fund
Lord Abbett Missouri Tax-Free Income Fund
Lord Abbett New Jersey Tax-Free Income Fund
Lord Abbett New York Tax-Free Income Fund
Lord Abbett Texas Tax-Free Income Fund
Lord Abbett Washington Tax-Free Income Fund
Lord Abbett Municipal Income Trust
This report, when not used for the general Lord Abbett Insured Intermediate Tax-Free Fund
information of shareholders of the Fund, is to Florida Series
be distributed only if preceded or accompanied Georgia Series
by a current fund prospectus. High Yield Municipal Bond Fund
Michigan Series
Lord Abbett mutual fund shares are distributed by Pennsylvania Series LATFI-3-306
LORD ABBETT DISTRIBUTOR LLC. (5/06)
</Table>
<Page>
ITEM 2: CODE OF ETHICS.
Not applicable.
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6: SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7: DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8: PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT
COMPANIES.
Not applicable.
ITEM 9: PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11: CONTROLS AND PROCEDURES.
(a) Based on their evaluation of the Registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940) as of a date within 90 days
prior to the filing date of this report, 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
control over financial reporting (as defined in Rule 30a-3(d)
under the Investment Company Act of 1940) that occurred during
the second fiscal quarter of the period covered by this report
that have materially affected, or are reasonably likely to
materially affect, the Registrant's internal control over
financial reporting.
ITEM 12: EXHIBITS.
(a)(1) Amendments to Code of Ethics - Not applicable.
(a)(2) 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.
(a)(3) Not applicable.
(b) 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 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 MUNICIPAL 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, 2006
<Page>
Pursuant to the requirements of the Securities 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 MUNICIPAL 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, 2006