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 811-3174
--------------------------------------------
Touchstone Tax-Free Trust
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(Exact name of registrant as specified in charter)
221 East Fourth Street, Cincinnati, Ohio 45202
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(Address of principal executive offices) (Zip code)
Michael S. Spangler, 221 East Fourth Street, Cincinnati, Ohio 45202
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(Name and address of agent for service)
Registrant's telephone number, including area code: (513) 362-8000
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Date of fiscal year end: 6/30/04
--------------------
Date of reporting period: 12/31/03
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Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
<page>
ITEM 1. REPORTS TO STOCKHOLDERS.
Semiannual Report
[GRAPHIC]
December 31, 2003 (Unaudited)
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[LOGO] TOUCHSTONE
INVESTMENTS
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SEMI-ANNUAL REPORT
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Touchstone California Tax-Free Money Market Fund
Touchstone Florida Tax-Free Money Market Fund
Touchstone Ohio Insured Tax-Free Fund
Touchstone Ohio Tax-Free Money Market Fund
Touchstone Tax-Free Intermediate Term Fund
Touchstone Tax-Free Money Market Fund
Research o Design o Select o Monitor
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Tax-Exempt
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TABLE OF CONTENTS
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Page
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Statements of Assets and Liabilities 3
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Statements of Operations 8
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Statements of Changes in Net Assets 11
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Financial Highlights 16
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Notes to Financial Statements 25
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Portfolios of Investments:
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California Tax-Free Money Market Fund 35-37
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Florida Tax-Free Money Market Fund 38-39
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Ohio Insured Tax-Free Fund 40-41
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Ohio Tax-Free Money Market Fund 42-46
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Tax-Free Intermediate Term Fund 47-49
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Tax-Free Money Market Fund 50-51
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Notes to Portfolios of Investments 52
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2
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2003 (UNAUDITED)
===============================================================================================
CALIFORNIA FLORIDA
TAX-FREE TAX-FREE
MONEY MARKET MONEY MARKET
FUND FUND
- -----------------------------------------------------------------------------------------------
ASSETS
Investment securities:
At amortized cost ......................................... $ 81,923,449 $ 26,011,447
=============================
At market value ........................................... $ 81,923,449 $ 26,011,447
Cash ......................................................... 72,457 58,202
Interest receivable .......................................... 295,614 102,366
Other assets ................................................. 515 1,230
-----------------------------
TOTAL ASSETS ................................................. 82,292,035 26,173,245
-----------------------------
LIABILITIES
Dividends payable ............................................ -- 9,116
Payable to Advisor ........................................... 32,433 11,651
Payable to affiliates ........................................ 10,012 4,961
Other accrued expenses and liabilities ....................... 45,457 38,262
-----------------------------
TOTAL LIABILITIES ............................................ 87,902 63,990
-----------------------------
NET ASSETS ................................................... $ 82,204,133 $ 26,109,255
=============================
NET ASSETS CONSIST OF:
Paid-in capital .............................................. $ 82,206,949 $ 26,109,843
Undistributed net investment income .......................... 104 --
Accumulated net realized losses from security transactions ... (2,920) (588)
-----------------------------
NET ASSETS ................................................... $ 82,204,133 $ 26,109,255
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) ..... 82,207,231 26,109,831
=============================
Net asset value, offering price and redemption price per share $ 1.00 $ 1.00
=============================
See accompanying notes to financial statements.
3
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2003 (UNAUDITED)
===============================================================================================
OHIO OHIO
INSURED TAX-FREE
TAX-FREE MONEY MARKET
FUND FUND
- -----------------------------------------------------------------------------------------------
ASSETS
Investment securities:
At amortized cost ......................................... $ 59,221,291 $414,227,209
=============================
At market value ........................................... $ 64,759,989 $414,227,209
Cash ......................................................... 7,601 --
Interest receivable .......................................... 434,082 985,027
Receivable for capital shares sold ........................... 2,596 --
Receivable for securites sold ................................ 1,464,375 --
Other assets ................................................. 5,407 2,242
-----------------------------
TOTAL ASSETS ................................................. 66,674,050 415,214,478
-----------------------------
LIABILITIES
Bank overdraft ............................................... -- 169,075
Dividends payable ............................................ 85,806 132,998
Payable to Advisor ........................................... 25,651 158,025
Payable to affiliates ........................................ 10,013 29,153
Payable for capital shares redeemed .......................... 4,611 --
Payable for securities purchased ............................. 1,690,344 --
Other accrued expenses and liabilities ....................... 67,802 92,613
-----------------------------
TOTAL LIABILITIES ............................................ 1,884,227 581,864
-----------------------------
NET ASSETS ................................................... $ 64,789,823 $414,632,614
=============================
NET ASSETS CONSIST OF:
Paid-in Capital .............................................. $ 59,159,198 $414,621,204
Accumulated net realized gains from security transactions .... 91,927 11,410
Net unrealized appreciation on investments ................... 5,538,698 --
-----------------------------
NET ASSETS ................................................... $ 64,789,823 $414,632,614
=============================
PRICING OF CLASS A SHARES
Net assets applicable to Class A shares ...................... $ 56,862,094 $ --
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) ..... 4,676,347 --
=============================
Net asset value and redemption price per share ............... $ 12.16 $ --
=============================
Maximum offering price per share ............................. $ 12.77 $ --
=============================
PRICING OF CLASS B SHARES
Net assets applicable to Class B shares ...................... $ 369,100 $ --
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) ..... 30,268 --
=============================
Net asset value and redemption price per share* .............. $ 12.19 $ --
=============================
Maximum offering price per share ............................. $ 12.19 $ --
=============================
4
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2003 (UNAUDITED)
===============================================================================================
OHIO OHIO
INSURED TAX-FREE
TAX-FREE MONEY MARKET
FUND FUND
- -----------------------------------------------------------------------------------------------
PRICING OF CLASS C SHARES
Net assets applicable to Class C shares ...................... $ 7,558,629 $ --
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) ..... 619,519 --
=============================
Net asset value and redemption price per share* .............. $ 12.20 $ --
=============================
Maximum offering price per share ............................. $ 12.20 $ --
=============================
PRICING OF RETAIL SHARES
Net assets applicable to Retail shares ....................... $ -- $174,694,981
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) ..... -- 174,680,802
=============================
Net asset value, offering price and redemption price per share* $ -- $ 1.00
=============================
PRICING OF INSTITUTIONAL SHARES
Net assets applicable to Institutional shares ................ $ -- $239,937,633
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) ..... -- 239,926,791
=============================
Net asset value, offering price and redemption price per share* $ -- $ 1.00
=============================
* Redemption price per share varies by length of time shares are held.
See accompanying notes to financial statements.
5
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2003 (UNAUDITED)
===============================================================================================
TAX-FREE TAX-FREE
INTERMEDIATE MONEY MARKET
TERM FUND FUND
- -----------------------------------------------------------------------------------------------
ASSETS
Investment securities:
At amortized cost ......................................... $ 35,658,140 $ 32,485,990
=============================
At market value ........................................... $ 37,683,732 $ 32,485,990
Cash ......................................................... 4,154 50,927
Interest receivable .......................................... 412,280 132,391
Receivable for capital shares sold ........................... 18,473 --
Receivable for securities sold ............................... 536,170 --
Other assets ................................................. 11,615 10,976
-----------------------------
TOTAL ASSETS ................................................. 38,666,424 32,680,284
-----------------------------
LIABILITIES
Dividends payable ............................................ 30,150 169
Payable to Advisor ........................................... 15,190 12,028
Payable to affiliates ........................................ 8,855 9,400
Payable for capital shares redeemed .......................... 75,837 --
Other accrued expenses and liabilities ....................... 66,990 51,710
-----------------------------
TOTAL LIABILITIES ............................................ 197,022 73,307
-----------------------------
NET ASSETS ................................................... $ 38,469,402 $ 32,606,977
=============================
NET ASSETS CONSIST OF:
Paid-in Capital .............................................. $ 36,416,022 $ 32,595,783
Undistributed net investment income .......................... -- 310
Undistributed net realized gains from security transactions .. 27,788 10,884
Net unrealized appreciation on investments ................... 2,025,592 --
-----------------------------
NET ASSETS ................................................... $ 38,469,402 $ 32,606,977
=============================
PRICING OF CLASS A SHARES
Net assets applicable to Class A shares ...................... $ 33,288,274 $ 19,272,097
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) ..... 2,902,378 19,276,790
=============================
Net asset value and redemption price per share ............... $ 11.47 $ 1.00
=============================
Maximum offering price per share ............................. $ 12.04 $ --
=============================
PRICING OF CLASS B SHARES
Net assets applicable to Class B shares ...................... $ 478,677 $ --
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) ..... 41,714 --
=============================
Net asset value and redemption price per share* .............. $ 11.48 $ --
=============================
Maximum offering price per share ............................. $ 11.48 $ --
=============================
6
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2003 (UNAUDITED)
===============================================================================================
TAX-FREE TAX-FREE
INTERMEDIATE MONEY MARKET
TERM FUND FUND
- -----------------------------------------------------------------------------------------------
PRICING OF CLASS C SHARES
Net assets applicable to Class C shares ...................... $ 4,702,451 $ --
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) ..... 409,874 --
=============================
Net asset value and redemption price per share* .............. $ 11.47 $ --
=============================
Maximum offering price per share ............................. $ 11.47 $ --
=============================
PRICING OF CLASS S SHARES
Net assets applicable to Class S shares ...................... $ -- $ 13,334,880
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) ..... -- 13,330,106
=============================
Net asset value and redemption price per share* .............. $ -- $ 1.00
=============================
* Redemption price per share varies by length of time shares are held.
See accompanying notes to financial statements.
7
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2003 (UNAUDITED)
================================================================================
CALIFORNIA FLORIDA
TAX-FREE TAX-FREE
MONEY MARKET MONEY MARKET
FUND FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest income .............................. $ 361,521 $ 166,783
-----------------------------
EXPENSES
Investment advisory fees ..................... 178,234 76,155
Distribution expenses ........................ 89,117 38,077
Transfer agent fees .......................... 16,433 6,000
Accounting services fees ..................... 15,000 12,000
Custodian fees ............................... 11,185 2,354
Reports to shareholders ...................... 1,107 --
Postage and supplies ......................... 201 327
Professional fees ............................ 9,324 7,254
Administration ............................... 19,587 8,382
Pricing expenses ............................. 4,937 2,259
Registration fees ............................ 1,663 758
Trustees' fees and expenses .................. 4,518 4,546
Other expense ................................ 2,509 1,109
-----------------------------
TOTAL EXPENSES ............................... 353,815 159,221
Fees waived by the Advisor ................... (87,192) (45,324)
-----------------------------
NET EXPENSES ................................. 266,623 113,897
-----------------------------
NET INVESTMENT INCOME ........................ 94,898 52,886
-----------------------------
NET REALIZED LOSSES FROM SECURITY TRANSACTIONS (3,556) (480)
-----------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ... $ 91,342 $ 52,406
=============================
See accompanying notes to financial statements.
8
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2003 (UNAUDITED)
================================================================================
OHIO OHIO
INSURED TAX-FREE
TAX-FREE MONEY MARKET
FUND FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest income .............................. $ 1,551,559 $ 2,294,910
-----------------------------
EXPENSES
Investment advisory fees ..................... 165,144 900,683
Distribution expenses, Class A ............... 72,858 --
Distribution expenses, Class B ............... 1,698 --
Distribution expenses, Class C ............... 37,157 --
Distribution expenses, Retail class .......... -- 208,060
Transfer agent fees, Class A ................. 10,580 --
Transfer agent fees, Class B ................. 6,000 --
Transfer agent fees, Class C ................. 6,000 --
Transfer agent fees, Retail class ............ -- 26,665
Transfer agent fees, Institutional class ..... -- 6,000
Accounting services fees ..................... 22,500 30,750
Registration fees, Class A ................... 2,121 --
Registration fees, Class B ................... 1,800 --
Registration fees, Class C ................... 1,430 --
Registration fees, Retail Class .............. -- 10,324
Reports to shareholders ...................... 443 --
Postage and supplies ......................... 15,572 33,906
Professional fees ............................ 10,375 9,055
Custodian fees ............................... 6,362 25,742
Pricing expenses ............................. 4,398 10,207
Administration fees .......................... 18,165 98,678
Trustees' fees and expenses .................. 4,469 4,533
Other expenses ............................... 689 3,649
-----------------------------
TOTAL EXPENSES ............................... 387,761 1,368,252
Fees waived by the Advisor ................... (110,860) (113,882)
-----------------------------
NET EXPENSES ................................. 276,901 1,254,370
-----------------------------
NET INVESTMENT INCOME ........................ 1,274,658 1,040,540
-----------------------------
REALIZED AND UNREALIZED LOSSES ON INVESTMENTS
Net realized losses from security transactions (157,636) --
Net change in unrealized appreciation/
depreciation on investments ................ (271,174) --
-----------------------------
NET REALIZED AND UNREALIZED LOSSES
ON INVESTMENTS (428,810) --
-----------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ... $ 845,848 $ 1,040,540
=============================
See accompanying notes to financial statements.
9
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2003 (UNAUDITED)
================================================================================
TAX-FREE TAX-FREE
INTERMEDIATE MONEY MARKET
TERM FUND FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest income .............................. $ 883,528 $ 225,472
-----------------------------
EXPENSES
Investment advisory fees ..................... 99,064 83,820
Distribution expenses, Class A ............... 42,978 23,980
Distribution expenses, Class B ............... 2,014 --
Distribution expenses, Class C ............... 24,202 --
Distribution expenses, Class S ............... -- 43,033
Transfer agent fees, Class A ................. 14,700 12,094
Transfer agent fees, Class B ................. 6,000 --
Transfer agent fees, Class C ................. 6,000 --
Transfer agent fees, Class S ................. -- 6,000
Accounting services fees ..................... 19,500 15,750
Registration fees, Class A ................... 5,053 5,893
Registration fees, Class B ................... 3,989 --
Registration fees, Class C ................... 4,463 --
Registration fees, Class S ................... -- 9,714
Postage and supplies ......................... 18,247 12,229
Professional fees ............................ 10,388 9,270
Custodian fees ............................... 3,226 3,552
Pricing expenses ............................. 4,558 2,884
Administration fees .......................... 10,897 9,231
Trustees' fees and expenses .................. 4,251 4,469
Other expenses ............................... 987 224
-----------------------------
TOTAL EXPENSES ............................... 280,517 242,143
Fees waived by the Advisor ................... (65,209) (74,747)
-----------------------------
NET EXPENSES ................................. 215,308 167,396
-----------------------------
NET INVESTMENT INCOME ........................ 668,220 58,076
-----------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions 126,017 12
Net change in unrealized appreciation/
depreciation on investments ................ (734,577) --
-----------------------------
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS .................... (608,560) 12
-----------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ... $ 59,660 $ 58,088
=============================
See accompanying notes to financial statements.
10
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================================================
CALIFORNIA FLORIDA
TAX-FREE TAX-FREE
MONEY MARKET MONEY MARKET
FUND FUND
-----------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
DECEMBER 31, ENDED DECEMBER 31, ENDED
2003 JUNE 30, 2003 JUNE 30,
(UNAUDITED) 2003 (UNAUDITED) 2003
- ----------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income ............... $ 94,898 $ 491,326 $ 52,886 $ 198,377
Net realized gains (losses) from
security transactions ............ (3,556) 251 (480) 7,941
-----------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS ....................... 91,342 491,577 52,406 206,318
-----------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income .......... (94,794) (491,598) (52,886) (198,377)
From net realized gains ............. -- (5,641) -- --
-----------------------------------------------------------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS .... (94,794) (497,239) (52,886) (198,377)
-----------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ........... 108,740,357 231,465,121 26,910,481 60,228,779
Reinvested distributions ............ 95,139 481,616 10,597 69,053
Payments for shares redeemed ........ (96,973,158) (246,001,399) (30,467,977) (48,777,163)
-----------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS .. 11,862,338 (14,054,662) (3,546,899) 11,520,669
-----------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS ....................... 11,858,886 (14,060,324) (3,547,379) 11,528,610
NET ASSETS
Beginning of period ................. 70,345,247 84,405,571 29,656,634 18,128,024
-----------------------------------------------------------------------
End of period ....................... $ 82,204,133 $ 70,345,247 $ 26,109,255 $ 29,656,634
=======================================================================
See accompanying notes to financial statements.
11
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================================================
OHIO
OHIO INSURED TAX-FREE
TAX-FREE MONEY MARKET
FUND FUND
-----------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
DECEMBER 31, ENDED DECEMBER 31, ENDED
2003 JUNE 30, 2003 JUNE 30,
(UNAUDITED) 2003 (UNAUDITED) 2003
- ----------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income ............... $ 1,274,658 $ 2,548,395 $ 1,040,540 $ 3,785,390
Net realized gains (losses) from
security transactions ............ (157,636) 899,591 -- 31,700
Net change in unrealized appreciation/
depreciation on investments ...... (271,174) 2,092,804 -- --
-----------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS .................. 845,848 5,540,790 1,040,540 3,817,090
-----------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class A . (1,150,208) (2,351,509) -- --
From net investment income, Class B . (5,447) (8,218) -- --
From net investment income, Class C . (119,003) (188,668) -- --
From net investment income, Retail .. -- -- (299,324) (1,374,359)
From net investment income, Institutional -- -- (741,216) (2,411,031)
From net realized gains, Class A .... (542,257) (332,541) -- --
From net realized gains, Class B .... (3,447) (1,419) -- --
From net realized gains, Class C .... (71,180) (31,146) -- --
-----------------------------------------------------------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS .... (1,891,542) (2,913,501) (1,040,540) (3,785,390)
-----------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
CLASS A
Proceeds from shares sold ........... 41,735,675 166,427,209 -- --
Reinvested distributions ............ 1,065,591 1,811,604 -- --
Payments for shares redeemed ........ (44,697,588) (165,318,707) -- --
-----------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CLASS A SHARE TRANSACTIONS .. (1,896,322) 2,920,106 -- --
-----------------------------------------------------------------------
CLASS B
Proceeds from shares sold ........... 62,444 136,163 -- --
Reinvested distributions ............ 6,013 7,253 -- --
Payments for shares redeemed ........ (3,646) (4,117) -- --
-----------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS B
SHARE TRANSACTIONS ............... 64,811 139,299 -- --
-----------------------------------------------------------------------
12
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
================================================================================================================
OHIO
OHIO INSURED TAX-FREE
TAX-FREE MONEY MARKET
FUND FUND
-----------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
DECEMBER 31, ENDED DECEMBER 31, ENDED
2003 JUNE 30, 2003 JUNE 30,
(UNAUDITED) 2003 (UNAUDITED) 2003
- ----------------------------------------------------------------------------------------------------------------
CLASS C
Proceeds from shares sold ........... $ 545,432 $ 2,962,425 $ -- $ --
Reinvested distributions ............ 137,431 172,491 -- --
Payments for shares redeemed ........ (395,146) (860,392) -- --
-----------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS C
SHARE TRANSACTIONS ............... 287,717 2,274,524 -- --
-----------------------------------------------------------------------
RETAIL
Proceeds from shares sold ........... -- -- 199,836,421 447,218,674
Reinvested distributions ............ -- -- 300,744 1,369,314
Payments for shares redeemed ........ -- -- (181,252,095) (503,873,010)
-----------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM RETAIL SHARE TRANSACTIONS ... -- -- 18,885,070 (55,285,022)
-----------------------------------------------------------------------
INSTITUTIONAL
Proceeds from shares sold ........... -- -- 259,644,879 506,126,362
Reinvested distributions ............ -- -- 36,215 159,261
Payments for shares redeemed ........ -- -- (285,863,112) (450,864,267)
-----------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM INSTITUTIONAL SHARE
TRANSACTIONS ..................... -- -- (26,182,018) 55,421,356
-----------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (2,589,488) 7,961,218 (7,296,948) 168,034
NET ASSETS
Beginning of period ................. 67,379,311 59,418,093 421,929,562 421,761,528
-----------------------------------------------------------------------
End of period ....................... $ 64,789,823 $ 67,379,311 $ 414,632,614 $ 421,929,562
=======================================================================
See accompanying notes to financial statements.
13
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================================================
TAX-FREE TAX-FREE
INTERMEDIATE MONEY MARKET
TERM FUND FUND
-----------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
DECEMBER 31, ENDED DECEMBER 31, ENDED
2003 JUNE 30, 2003 JUNE 30,
(UNAUDITED) 2003 (UNAUDITED) 2003
- ----------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income ............... $ 668,220 $ 1,388,560 $ 58,076 $ 204,839
Net realized gains from security
transactions ..................... 126,017 537,468 12 9,642
Net change in unrealized appreciation/
depreciation on investments ...... (734,577) 888,456 -- --
-----------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS .................. 59,660 2,814,484 58,088 214,481
-----------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class A . (596,931) (1,246,317) (43,855) (181,440)
From net investment income, Class B . (5,481) (4,372) -- --
From net investment income, Class C . (65,808) (137,871) -- --
From net investment income, Class S . -- -- (13,911) (24,361)
From net realized gains, Class A .... -- -- -- (42,682)
-----------------------------------------------------------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS .... (668,220) (1,388,560) (57,766) (248,483)
-----------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
CLASS A
Proceeds from shares sold ........... 1,944,636 12,754,363 11,814,278 29,377,332
Reinvested distributions ............ 447,310 947,167 42,885 220,138
Payments for shares redeemed ........ (3,753,642) (13,135,382) (13,960,761) (31,715,452)
-----------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CLASS A SHARE TRANSACTIONS .. (1,361,696) 566,148 (2,103,598) (2,117,982)
-----------------------------------------------------------------------
CLASS B
Proceeds from shares sold ........... 127,900 333,811 -- --
Reinvested distributions ............ 1,411 2,412 -- --
Payments for shares redeemed ........ (31,005) (15,334) -- --
-----------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS B
SHARE TRANSACTIONS ............... 98,306 320,889 -- --
-----------------------------------------------------------------------
CLASS C
Proceeds from shares sold ........... 227,399 2,985,278 -- --
Reinvested distributions ............ 42,271 89,088 -- --
Payments for shares redeemed ........ (579,496) (1,743,501) -- --
-----------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CLASS C SHARE TRANSACTIONS .. (309,826) 1,330,865 -- --
-----------------------------------------------------------------------
14
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
================================================================================================================
TAX-FREE TAX-FREE
INTERMEDIATE MONEY MARKET
TERM FUND FUND
-----------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
DECEMBER 31, ENDED DECEMBER 31, ENDED
2003 JUNE 30, 2003 JUNE 30,
(UNAUDITED) 2003 (UNAUDITED) 2003
- ----------------------------------------------------------------------------------------------------------------
CLASS S
Proceeds from shares sold ........... $ -- $ -- $ 32,761,342 $ 60,088,784
Reinvested distributions ............ -- -- 14,026 24,213
Payments for shares redeemed ........ -- -- (38,132,215) (41,426,045)
-----------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CLASS S SHARE TRANSACTIONS .. -- -- (5,356,847) 18,686,952
-----------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS ....................... (2,181,776) 3,643,826 (7,460,123) 16,534,968
-----------------------------------------------------------------------
NET ASSETS
Beginning of period ................. 40,651,178 37,007,352 40,067,100 23,532,132
-----------------------------------------------------------------------
End of period ....................... $ 38,469,402 $ 40,651,178 $ 32,606,977 $ 40,067,100
=======================================================================
See accompanying notes to financial statements.
15
CALIFORNIA TAX-FREE MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
================================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
2003 --------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-----------------------------------------------------------------------------------
Net investment income ................ 0.001(A) 0.006 0.012 0.028 0.027 0.025
-----------------------------------------------------------------------------------
Net realized gains on investments .... -- 0.000(A) 0.000(A) -- -- --
-----------------------------------------------------------------------------------
Dividends from net investment income . (0.001)(A) (0.006) (0.012) (0.028) (0.027) (0.025)
-----------------------------------------------------------------------------------
Net asset value at end of period ..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
===================================================================================
Total return ......................... 0.26%(B) 0.65% 1.17% 2.84% 2.75% 2.56%
===================================================================================
Net assets at end of period (000's) .. $ 82,204 $ 70,345 $ 84,406 $ 69,485 $ 62,900 $ 47,967
===================================================================================
Ratio of net expenses to
average net assets ................ 0.75%(B) 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment income to
average net assets ................ 0.27%(B) 0.64% 1.13% 2.84% 2.72% 2.52%
(A) Amount rounds to less than $0.0005.
(B) Annualized.
See accompanying notes to financial statements.
FLORIDA TAX-FREE MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
================================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
2003 --------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-----------------------------------------------------------------------------------
Net investment income ................ 0.002(A) 0.008 0.017 0.033 0.030 0.026
-----------------------------------------------------------------------------------
Net realized gains (losses) on investments -- 0.000(A) (0.000)(A) -- -- --
-----------------------------------------------------------------------------------
Dividends from net investment income . (0.002)(A) (0.008) (0.017) (0.033) (0.030) (0.026)
-----------------------------------------------------------------------------------
Net asset value at end of period ..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
===================================================================================
Total return ......................... 0.35%(B) 0.76% 1.66% 3.30% 3.05% 2.68%
===================================================================================
Net assets at end of period (000's) .. $ 26,109 $ 29,657 $ 18,128 $ 16,690 $ 18,244 $ 21,371
===================================================================================
Ratio of net expenses to
average net assets ................ 0.75%(B) 0.69% 0.65% 0.65% 0.73% 0.75%
Ratio of net investment income to
average net assets ................ 0.35%(B) 0.77% 1.64% 3.26% 2.98% 2.58%
(A) Amount rounds to less than $0.0005.
(B) Annualized.
See accompanying notes to financial statements.
16
OHIO INSURED TAX-FREE FUND - CLASS A
FINANCIAL HIGHLIGHTS
================================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
2003 --------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 12.36 $ 11.94 $ 11.89 $ 11.45 $ 11.74 $ 12.37
-----------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income ............. 0.24 0.49 0.53 0.56 0.58 0.58
Net realized and unrealized gains
(losses) on investments ........ (0.08) 0.49 0.07 0.44 (0.29) (0.34)
-----------------------------------------------------------------------------------
Total from investment operations ..... 0.16 0.98 0.60 1.00 0.29 0.24
-----------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.36) (0.49) (0.53) (0.56) (0.58) (0.58)
Distributions from net realized gains -- (0.07) (0.02) -- -- (0.29)
-----------------------------------------------------------------------------------
Total distributions .................. (0.36) (0.56) (0.55) (0.56) (0.58) (0.87)
-----------------------------------------------------------------------------------
Net asset value at end of period ..... $ 12.16 $ 12.36 $ 11.94 $ 11.89 $ 11.45 $ 11.74
===================================================================================
Total return(A) ...................... 1.33%(B) 8.43% 5.15% 8.88% 2.60% 1.81%
===================================================================================
Net assets at end of period (000's) .. $ 56,862 $ 59,683 $ 54,348 $ 54,791 $ 59,600 $ 62,737
===================================================================================
Ratio of net expenses to
average net assets ................ 0.75%(C) 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment income to
average net assets ................ 3.95%(C) 4.03% 4.47% 4.77% 5.08% 4.72%
Portfolio turnover rate .............. 30%(C) 24% 28% 20% 66% 26%
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
17
OHIO INSURED TAX-FREE FUND - CLASS B
FINANCIAL HIGHLIGHTS
==================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR PERIOD
DECEMBER 31, ENDED ENDED ENDED
2003 JUNE 30, JUNE 30, JUNE 30,
(UNAUDITED) 2003 2002 2001(A)
- --------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 12.40 $ 11.95 $ 11.88 $ 11.76
-----------------------------------------------------
Income (loss) from investment operations:
Net investment income ............. 0.20 0.40 0.46 0.11
Net realized and unrealized gains (losses)
on investments ................. (0.10) 0.52 0.09 0.12
-----------------------------------------------------
Total from investment operations ..... 0.10 0.92 0.55 0.23
-----------------------------------------------------
Less distributions:
Dividends from net investment income (0.31) (0.40) (0.46) (0.11)
Distributions from net realized gains -- (0.07) (0.02) --
-----------------------------------------------------
Total distributions .................. (0.31) (0.47) (0.48) (0.11)
-----------------------------------------------------
Net asset value at end of period ..... $ 12.19 $ 12.40 $ 11.95 $ 11.88
=====================================================
Total return(B) ...................... 0.87%(C) 7.89% 4.72% 1.98%(C)
=====================================================
Net assets at end of period (000's) .. $ 369 $ 308 $ 161 $ 40
=====================================================
Ratio of net expenses to average net assets 1.50%(D) 1.50% 1.50% 0.50%(D)
Ratio of net investment income to
average net assets ................ 3.20%(D) 3.26% 3.69% 1.40%(D)
Portfolio turnover rate .............. 30%(D) 24% 28% 20%(D)
(A) Represents the period from the initial public offering of shares (May 1,2001) through
June 30, 2001.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
18
OHIO INSURED TAX-FREE FUND - CLASS C
FINANCIAL HIGHLIGHTS
================================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
2003 --------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period .. $ 12.41 $ 11.96 $ 11.89 $ 11.44 $ 11.74 $ 12.37
-----------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .............. 0.20 0.40 0.44 0.47 0.49 0.49
Net realized and unrealized gains
(losses) on investments ......... (0.10) 0.52 0.09 0.45 (0.30) (0.34)
-----------------------------------------------------------------------------------
Total from investment operations ...... 0.10 0.92 0.53 0.92 0.19 0.15
-----------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income . (0.31) (0.40) (0.44) (0.47) (0.49) (0.49)
Distributions from net realized gains -- (0.07) (0.02) -- -- (0.29)
-----------------------------------------------------------------------------------
Total distributions ................... (0.31) (0.47) (0.46) (0.47) (0.49) (0.78)
-----------------------------------------------------------------------------------
Net asset value at end of period ...... $ 12.20 $ 12.41 $ 11.96 $ 11.89 $ 11.44 $ 11.74
===================================================================================
Total return(A) ....................... 0.87%(B) 7.89% 4.54% 8.15% 1.75% 1.05%
===================================================================================
Net assets at end of period (000's) ... $ 7,559 $ 7,388 $ 4,910 $ 4,526 $ 3,585 $ 4,740
===================================================================================
Ratio of net expenses to
average net assets ................. 1.50%(C) 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of net investment income to
average net assets ................. 3.20%(C) 3.27% 3.72% 4.00% 4.42% 3.97%
Portfolio turnover rate ............... 30%(C) 24% 28% 20% 66% 26%
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
19
OHIO TAX-FREE MONEY MARKET FUND - RETAIL
FINANCIAL HIGHLIGHTS
================================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
2003 --------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-----------------------------------------------------------------------------------
Net investment income ................ 0.002(A) 0.008 0.015 0.033 0.031 0.027
-----------------------------------------------------------------------------------
Net realized gains (losses) on investments -- 0.000(A) (0.000)(A) -- -- --
-----------------------------------------------------------------------------------
Dividends from net investment income .. (0.002)(A) (0.008) (0.015) (0.033) (0.031) (0.027)
-----------------------------------------------------------------------------------
Net asset value at end of period ..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
===================================================================================
Total return ......................... 0.37%(B) 0.78% 1.47% 3.31% 3.09% 2.73%
===================================================================================
Net assets at end of period (000's) .. $174,695 $155,810 $211,083 $211,564 $214,561 $214,691
===================================================================================
Ratio of net expenses to average net assets 0.75%(B) 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment income to
average net assets ................ 0.36%(B) 0.79% 1.46% 3.29% 3.04% 2.68%
(A) Amount rounds to less than $0.0005.
(B) Annualized.
See accompanying notes to financial statements.
OHIO TAX-FREE MONEY MARKET FUND - INSTITUTIONAL
FINANCIAL HIGHLIGHTS
================================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
2003 --------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-----------------------------------------------------------------------------------
Net investment income ................. 0.003(A) 0.010 0.017 0.035 0.033 0.029
-----------------------------------------------------------------------------------
Net realized gains (losses) on investments -- 0.000(A) (0.000)(A) -- -- --
-----------------------------------------------------------------------------------
Dividends from net investment income .. (0.003)(A) (0.010) (0.017) (0.035) (0.033) (0.029)
-----------------------------------------------------------------------------------
Net asset value at end of period ...... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
===================================================================================
Total return .......................... 0.59%(B) 1.03% 1.72% 3.58% 3.35% 2.98%
===================================================================================
Net assets at end of period (000's) ... $239,938 $266,120 $210,679 $185,381 $132,889 $176,106
===================================================================================
Ratio of net expenses to average net assets 0.50%(B) 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income to
average net assets ................. 0.58%(B) 1.02% 1.69% 3.52% 3.25% 2.93%
(A) Amount rounds to less than $0.0005.
(B) Annualized.
See accompanying notes to financial statements.
20
TAX-FREE INTERMEDIATE TERM FUND - CLASS A
FINANCIAL HIGHLIGHTS
================================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
2003 --------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 11.64 $ 11.22 $ 11.05 $ 10.68 $ 10.87 $ 11.12
-----------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .............. 0.20 0.42 0.45 0.47 0.48 0.48
Net realized and unrealized gains
(losses) on investments ......... (0.17) 0.42 0.17 0.37 (0.19) (0.25)
-----------------------------------------------------------------------------------
Total from investment operations ...... 0.03 0.84 0.62 0.84 0.29 0.23
-----------------------------------------------------------------------------------
Dividends from net investment income .. (0.20) (0.42) (0.45) (0.47) (0.48) (0.48)
-----------------------------------------------------------------------------------
Net asset value at end of period ...... $ 11.47 $ 11.64 $ 11.22 $ 11.05 $ 10.68 $ 10.87
===================================================================================
Total return(A) ....................... 0.28%(B) 7.61% 5.73% 7.99% 2.75% 2.07%
===================================================================================
Net assets at end of period (000's) ... $ 33,288 $ 35,176 $ 33,350 $ 35,698 $ 36,817 $ 47,899
===================================================================================
Ratio of net expenses to
average net assets ................. 0.99%(C) 0.99% 0.99% 0.99% 0.99% 0.99%
Ratio of net investment income to
average net assets ................. 3.47%(C) 3.66% 4.07% 4.31% 4.47% 4.33%
Portfolio turnover rate ............... 18%(C) 46% 58% 51% 41% 51%
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
21
TAX-FREE INTERMEDIATE TERM FUND - CLASS B
FINANCIAL HIGHLIGHTS
==================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR PERIOD
DECEMBER 31, ENDED ENDED ENDED
2003 JUNE 30, JUNE 30, JUNE 30,
(UNAUDITED) 2003 2002 2001(A)
- --------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 11.65 $ 11.23 $ 11.06 $ 10.96
-----------------------------------------------------
Income (loss) from investment operations:
Net investment income ............. 0.16 0.34 0.37 0.06
Net realized and unrealized gains
(losses) on investments ........ (0.17) 0.42 0.17 0.10
-----------------------------------------------------
Total from investment operations ..... (0.01) 0.76 0.54 0.16
-----------------------------------------------------
Dividends from net investment income . (0.16) (0.34) (0.37) (0.06)
-----------------------------------------------------
Net asset value at end of period ..... $ 11.48 $ 11.65 $ 11.23 $ 11.06
=====================================================
Total return(B) ...................... (0.09%)(C) 6.87% 4.96% 1.50%(C)
=====================================================
Net assets at end of period (000's) .. $ 479 $ 386 $ 60 $ --(D)
=====================================================
Ratio of net expenses to average net assets 1.74%(E) 1.73% 1.74% 0.00%(E)(F)
Ratio of net investment income to
average net assets ................ 2.72%(E) 2.82% 3.31% 3.56%(E)
Portfolio turnover rate .............. 18%(E) 46% 58% 51%(E)
(A) Represents the period from the initial public offering of shares (May 1, 2001) through
June 30, 2001.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Class B shares net assets are less than $1,000.
(E) Annualized.
(F) Rounds to less than 0.005%.
See accompanying notes to financial statements.
22
TAX-FREE INTERMEDIATE TERM FUND - CLASS C
FINANCIAL HIGHLIGHTS
================================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
2003 --------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 11.64 $ 11.23 $ 11.06 $ 10.68 $ 10.88 $ 11.12
-----------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .............. 0.16 0.33 0.37 0.39 0.40 0.40
Net realized and unrealized gains
(losses) on investments ......... (0.17) 0.41 0.17 0.38 (0.20) (0.24)
-----------------------------------------------------------------------------------
Total from investment operations ...... (0.01) 0.74 0.54 0.77 0.20 0.16
-----------------------------------------------------------------------------------
Dividends from net investment income .. (0.16) (0.33) (0.37) (0.39) (0.40) (0.40)
-----------------------------------------------------------------------------------
Net asset value at end of period ...... $ 11.47 $ 11.64 $ 11.23 $ 11.06 $ 10.68 $ 10.88
===================================================================================
Total return(A) ....................... (0.10%)(B) 6.71% 4.94% 7.27% 1.88% 1.40%
===================================================================================
Net assets at end of period (000's) ... $ 4,702 $ 5,090 $ 3,597 $ 3,043 $ 3,374 $ 4,634
===================================================================================
Ratio of net expenses to
average net assets ................. 1.74%(C) 1.74% 1.74% 1.74% 1.74% 1.74%
Ratio of net investment income to
average net assets ................. 2.72%(C) 2.90% 3.30% 3.56% 3.72% 3.58%
Portfolio turnover rate ............... 18%(C) 46% 58% 51% 41% 51%
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
23
TAX-FREE MONEY MARKET FUND - CLASS A
FINANCIAL HIGHLIGHTS
================================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
2003 --------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-----------------------------------------------------------------------------------
Net investment income ................. 0.002(A) 0.008 0.017 0.034 0.032 0.027
-----------------------------------------------------------------------------------
Net realized gains on investments ..... -- 0.000(A) 0.000(A) -- -- --
-----------------------------------------------------------------------------------
Dividends from net investment income .. (0.002)(A) (0.008) (0.017) (0.034) (0.032) (0.027)
-----------------------------------------------------------------------------------
Net asset value at end of period ...... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
===================================================================================
Total return .......................... 0.46%(B) 0.99% 1.73% 3.45% 3.22% 2.75%
===================================================================================
Net assets at end of period (000's) ... $ 19,272 $ 21,375 $ 23,532 $ 22,409 $ 25,194 $ 25,234
===================================================================================
Ratio of net expenses to average net assets 0.89%(B) 0.89% 0.89% 0.89% 0.89% 0.89%
Ratio of net investment income to
average net assets ................. 0.46%(B) 0.79% 1.71% 3.42% 3.15% 2.74%
(A) Amount rounds to less than $0.0005.
(B) Annualized.
See accompanying notes to financial statements.
TAX-FREE MONEY MARKET FUND - CLASS S
FINANCIAL HIGHLIGHTS
================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD
DECEMBER 31, ENDED
2003 JUNE 30,
(UNAUDITED) 2003(A)
- --------------------------------------------------------------------------------
Net asset value at beginning of period ............. $ 1.000 $ 1.000
----------------------
Net investment income .............................. 0.001(B) 0.001
----------------------
Net realized gains on investments .................. -- 0.000(B)
----------------------
Dividends from net investment income ............... (0.001)(B) (0.001)
----------------------
Net asset value at end of period ................... $ 1.000 $ 1.000
======================
Total return ....................................... 0.20%(C) 0.13%(C)
======================
Net assets at end of period (000's) ................ $ 13,335 $ 18,692
======================
Ratio of net expenses to average net assets ........ 1.15%(C) 1.15%(C)
Ratio of net investment income to average net assets 0.19%(C) 0.31%(C)
(A) Represents the period from commencement of operations (February 3, 2003)
through June 30, 2003.
(B) Amount rounds to less than $0.0005.
(C) Annualized.
See accompanying notes to financial statements.
24
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003 (UNAUDITED)
================================================================================
1. ORGANIZATION
The California Tax-Free Money Market Fund, the Florida Tax-Free Money Market
Fund, the Ohio Insured Tax-Free Fund, the Ohio Tax-Free Money Market Fund, the
Tax-Free Intermediate Term Fund and the Tax-Free Money Market Fund
(individually, a Fund, and collectively, the Funds) are each a separate series
of Touchstone Tax-Free Trust (the Trust). The Trust is registered under the
Investment Company Act of 1940 (the 1940 Act) as an open-end management
investment company. The Trust was established as a Massachusetts business trust
under a Declaration of Trust dated April 13, 1981. The Declaration of Trust, as
amended, permits the Trustees to issue an unlimited number of shares of each
Fund.
The California Tax-Free Money Market Fund seeks the highest level of current
income exempt from federal and California income tax, consistent with liquidity
and stability of principal. The Fund invests primarily in high-quality,
short-term California municipal obligations issued by the State of California,
its agencies and municipalities, that pay interest that is exempt from both
federal income tax and California income tax.
The Florida Tax-Free Money Market Fund seeks the highest level of interest
income exempt from federal income tax, consistent with liquidity and stability
of principal. The Fund invests primarily in high-quality, short-term Florida
municipal obligations issued by the State of Florida, its agencies and
municipalities, that pay interest that is exempt from both federal income tax
and the Florida intangible personal property tax.
The Ohio Insured Tax-Free Fund seeks the highest level of interest income exempt
from federal income tax and Ohio personal income tax, consistent with the
protection of capital. The Fund invests primarily (at least 80% of assets) in
high quality, long-term Ohio municipal obligations, including general obligation
bonds, revenue bonds and industrial development bonds, that are protected by
insurance guaranteeing the payment of principal and interest in the event of
default.
The Ohio Tax-Free Money Market Fund seeks the highest level of current income
exempt from federal income tax and Ohio personal income tax, consistent with
liquidity and stability of principal. The Fund invests primarily in
high-quality, short-term Ohio municipal obligations issued by the State of Ohio,
its agencies and municipalities, that pay interest that is exempt from both
federal income tax and Ohio personal income tax.
The Tax-Free Intermediate Term Fund seeks high current income exempt from
federal income tax, consistent with the protection of capital. To the extent
consistent with the Fund's primary goal, capital appreciation is a secondary
goal. The Fund invests primarily in municipal obligations, including general
obligation bonds, revenue bonds and industrial development bonds, rated within
the three highest rating categories. The Fund may also invest in municipal
obligations rated in the fourth highest category.
The Tax-Free Money Market Fund seeks the highest level of interest income exempt
from federal income tax, consistent with the protection of capital. The Fund
invests primarily in high-quality, short-term municipal obligations that pay
interest that is exempt from federal income tax.
The Ohio Tax-Free Money Market Fund offers two classes of shares: Retail shares
(sold subject to a distribution fee of up to 0.25% of average daily net assets
of Retail shares) and Institutional shares (sold without a distribution fee).
Each Retail and Institutional share of the Fund represents identical interests
in the Fund's investment portfolio and has the same rights, except that (i)
Retail shares bear the expenses of distribution fees, which will cause Retail
shares to have a higher expense ratio and to pay lower dividends than
Institutional shares; (ii) certain other class specific expenses will be borne
solely by the class to which such expenses are attributable; (iii) each class
has exclusive voting rights with respect to matters affecting only that class;
and (iv) Retail shares are
25
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
================================================================================
subject to a lower minimum initial investment requirement and offer certain
shareholder services not available to Institutional shares such as checkwriting
and automatic investment and systematic withdrawal plans.
The Tax-Free Intermediate Term Fund and the Ohio Insured Tax-Free Fund each
offer three classes of shares: Class A shares (sold subject to a maximum
front-end sales load of 4.75% and a distribution fee of up to 0.25% of average
daily net assets that are attributable to Class A shares), Class B shares (sold
subject to a maximum contingent deferred sales load of 5.00% for a one-year
period and incrementally reduced over time and a distribution fee of up to 1.00%
of average daily net assets that are attributable to Class B shares) and Class C
shares (sold subject to a maximum contingent deferred sales load of 1.00% for a
one-year period and a distribution fee of up to 1.00% of average daily net
assets that are attributable to Class C shares). Each Class A, Class B and Class
C share of the Funds represents identical interests in the Fund's investment
portfolio and has the same rights, except that (i) Class B and Class C shares
bear the expenses of higher distribution fees, which will cause Class B and
Class C shares to have a higher expense ratio and to pay lower dividends than
Class A shares; (ii) certain other class specific expenses will be borne solely
by the class to which such expenses are attributable; and (iii) each class has
exclusive voting rights with respect to matters relating to its own distribution
arrangements.
The Tax-Free Money Market Fund offers two classes of shares: Class A shares
(sold subject to a distribution fee of up to 0.25% of average daily net assets
of Class A shares) and Class S shares (sold subject to a distribution fee of up
to 1.00% of average daily net assets that are attributable to Class S shares).
The current maximum distribution fee for Class S shares is limited to 0.60% of
average daily net assets of Class S shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Trust's significant accounting policies:
Security valuation - California Tax-Free Money Market Fund, Florida Tax-Free
Money Market Fund, Ohio Tax-Free Money Market Fund and Tax-Free Money Market
Fund securities are valued on an amortized cost basis, which approximates
market. This involves initially valuing a security at its original cost and
thereafter assuming a constant amortization to maturity of any discount or
premium. This method of valuation is expected to enable these Funds to maintain
a constant net asset value per share. Ohio Insured Tax-Free Fund and Tax-Free
Intermediate Term Fund securities are valued at market using an independent
pricing service which generally utilizes a computerized grid matrix of
tax-exempt securities and evaluations by its staff to determine what it believes
is the fair value of the securities. On limited occasions, if the valuation
provided by the pricing service ignores certain market conditions affecting the
value of a security or the pricing service cannot provide a valuation, the fair
value of the security will be determined in good faith consistent with
procedures approved by the Board of Trustees.
Share valuation - The net asset value per share of the California Tax-Free Money
Market Fund, Florida Tax-Free Money Market Fund, and the Tax-Free Money Market
Fund is calculated daily by dividing the total value of a Fund's assets, less
liabilities, by its number of shares outstanding. The net asset value per share
of each class of shares of the Ohio Insured Tax-Free Fund, Ohio Tax-Free Money
Market Fund and the Tax-Free Intermediate Term Fund is also calculated daily by
dividing the total value of the Fund's assets attributable to that class, less
liabilities attributable to that class, by the number of shares outstanding
attributable to that class.
The offering price per share of the California Tax-Free Money Market Fund, the
Florida Tax-Free Money Market Fund, the Ohio Tax-Free Money Market Fund and the
Tax-Free Money Market
26
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
================================================================================
Fund is equal to the net asset value per share. The maximum offering price of
Class A shares of the Ohio Insured Tax-Free Fund and the Tax-Free Intermediate
Term Fund is equal to the net asset value per share plus a sales load equal to
4.99% of the net asset value (or 4.75% of the offering price). The offering
price of Class B and Class C shares of each Fund is equal to the net asset value
per share.
The redemption price per share of each Fund, including each class of shares with
respect to the Ohio Insured Tax-Free Fund, the Ohio Tax-Free Money Market Fund
and the Tax-Free Intermediate Term Fund, is equal to the net asset value per
share. However, Class B and Class C shares of the Ohio Insured Tax-Free Fund and
the Tax-Free Intermediate Term Fund are subject to a contingent deferred sales
load of 5.00% (incrementally reduced over time) and 1.00% (if redeemed within a
one-year period from the date of purchase), respectively, of the original
purchase price.
Investment income - Interest income is accrued as earned and includes, where
applicable, the pro rata amortization of premium or accretion of discount.
Distributions to shareholders - Dividends from net investment income are
distributed daily and paid on the last business day of each month. Net realized
short-term capital gains, if any, may be distributed throughout the year and net
realized long-term capital gains, if any, are distributed at least once each
year. Income distributions and capital gain distributions are determined in
accordance with income tax regulations.
Security transactions - Security transactions are accounted for on the trade
date. Gains and losses on securities sold are determined on a specific
identification basis.
When-issued securities - The Funds may purchase securities with delivery or
payments to occur at a later date. At the time the Funds enter into a commitment
to purchase a security, the transaction is recorded and the value of the
security is reflected in the net asset value. The value of the security may vary
with market fluctuations. No interest accrues to the Fund until payment takes
place. At the time the Fund enters into this type of transaction, it is required
to segregate cash or other liquid assets equal to the value of the securities
purchased. At December 31, 2003, the market value of securities segregated for
these types of transactions (Pasco, Co., FL, HFA MFH Rev. (Oak Trail Apts.)) for
the Tax-Free Intermediate Term Fund was $1,056,040.
Allocations - Investment income earned by the Fund is allocated daily to each
class of shares based on the percentage of the net asset value of settled shares
of such class to the total of the net asset value of settled shares of all
classes. Realized capital gains and losses and unrealized appreciation and
depreciation are allocated daily to each class of shares based upon the
proportionate share of total net assets of the Fund. Class specific expenses are
charged directly to the class incurring the expense. Common expenses which are
not attributable to a specific class are allocated daily to each class of shares
based upon its proportionate share of total net assets of the Fund. Expenses not
directly billed to a Fund are allocated daily to each Fund based on the
proportional share of each Fund's assets in relation to net assets of each Fund
or another reasonable measure.
Estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States 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 income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax - It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its net income, the Fund will be relieved of
federal income tax on the income distributed.
27
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
================================================================================
Accordingly, no provision for income taxes has been made. In addition, each Fund
intends to satisfy conditions which enable it to designate the interest income
generated by its investment in municipal securities, which is exempt from
federal income tax when received by the Fund, as exempt-interest dividends upon
distribution to shareholders.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare and pay as
dividends in each calendar year at least 98% of its net investment income
(earned during the calendar year) and 98% of its net realized capital gains
(earned during the twelve months ended October 31) plus undistributed amounts
from prior years.
The tax character of distributions paid for the years ended June 30, 2003 and
2002 was as follows:
- ----------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE FLORIDA TAX-FREE
MONEY MARKET MONEY MARKET OHIO INSURED
FUND FUND TAX-FREE FUND
- ----------------------------------------------------------------------------------------------------------------
2003 2002 2003 2002 2003 2002
From tax exempt income $ 491,486 $ 970,870 $ 198,377 $ 315,641 $2,548,395 $2,745,313
From ordinary income 5,753 4,531 -- -- 16,402 --
From long-term capital gains -- -- -- -- 348,704 99,862
--------------------------------------------------------------------------------
$ 497,239 $ 975,401 $ 198,377 $ 315,641 $2,913,501 $2,845,175
================================================================================
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
OHIO TAX-FREE TAX-FREE TAX-FREE
MONEY MARKET INTERMEDIATE MONEY MARKET
FUND TERM FUND FUND
- ----------------------------------------------------------------------------------------------------------------
2003 2002 2003 2002 2003 2002
From tax exempt income $3,785,390 $7,360,312 $1,388,560 $1,515,899 $ 205,531 $ 404,760
From ordinary income -- -- -- -- 673 --
From long-term capital gains -- -- -- -- 42,279 --
================================================================================
$3,785,390 $7,360,312 $1,388,560 $1,515,899 $ 248,483 $ 404,760
================================================================================
- ----------------------------------------------------------------------------------------------------------------
28
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
==========================================================================================
The following information is computed on a tax basis for each item as of June 30, 2003:
- ------------------------------------------------------------------------------------------
CALIFORNIA FLORIDA
TAX-FREE TAX-FREE OHIO-INSURED
MONEY MARKET MONEY MARKET TAX-FREE
FUND FUND FUND
- ------------------------------------------------------------------------------------------
Cost of portfolio investments .......... $ 70,691,061 $ 29,663,242 $ 62,703,922
Gross unrealized appreciation .......... -- -- 5,896,969
Gross unrealized depreciation .......... -- -- (87,097)
----------------------------------------------
Net unrealized appreciation/depreciation -- -- 5,809,872
==============================================
Capital loss carryforward .............. -- (108) --
==============================================
Undistributed ordinary income .......... -- -- 49,199
==============================================
Undistributed tax exempt income ........ 540 9,157 74,010
==============================================
Undistributed long-term gains .......... 251 -- 567,685
==============================================
Other temporary differences ............ (428) (9,157) (74,010)
==============================================
Accumulated earnings (deficit) ..... $ 363 $ (108) $ 6,426,756
==============================================
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
OHIO
TAX-FREE TAX-FREE TAX-FREE
MONEY MARKET INTERMEDIATE MONEY MARKET
FUND TERM FUND FUND
- ------------------------------------------------------------------------------------------
Cost of portfolio investments .......... $420,885,483 $ 39,559,115 $ 40,776,995
Gross unrealized appreciation .......... -- 2,780,760 --
Gross unrealized depreciation .......... -- (20,591) --
----------------------------------------------
Net unrealized appreciation/depreciation -- 2,760,169 --
==============================================
Capital loss carryforward .............. -- (98,229) --
==============================================
Undistributed ordinary income .......... 10,212 -- 9,642
==============================================
Undistributed tax exempt income ........ 147,404 29,366 558
==============================================
Undistributed long-term gains .......... 1,198 -- --
==============================================
Other temporary differences ............ (147,404) (29,366) (288)
==============================================
Accumulated earnings (deficit) ..... $ 11,410 $ 2,661,940 $ 9,912
==============================================
- ------------------------------------------------------------------------------------------
The difference between the cost of portfolio investments and financial statement cost for
the Funds is due to certain timing differences in the recognition of capital losses under
income tax regulations and generally accepted accounting principles.
The capital loss carryforwards as of June 30, 2003 in the table above expire as follows:
- -----------------------------------------------------------------------------------------
AMOUNT EXPIRATION DATE
- -----------------------------------------------------------------------------------------
Florida Tax-Free Money Fund ................. $ 108 June 30, 2010
Tax-Free Intermediate Term Fund .............. $98,229 June 30, 2009
- -----------------------------------------------------------------------------------------
29
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
================================================================================
The capital loss carryforwards may be utilized in the current and future years
to offset net realized capital gains, if any, prior to distributing such gains
to shareholders.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) were as follows for
the six months ended December 31, 2003:
- --------------------------------------------------------------------------------
OHIO INSURED TAX-FREE
TAX-FREE INTERMEDIATE
FUND TERM FUND
- --------------------------------------------------------------------------------
Purchases of investment securities .............. $ 9,224,689 $ 3,482,322
------------ -----------
Proceeds from sales and maturities of
investment securities ................... $ 12,240,849 $ 7,483,259
------------ -----------
- --------------------------------------------------------------------------------
4. TRANSACTIONS WITH AFFILIATES
The President and certain other officers of the Trust are also officers of
Touchstone Advisors, Inc. (the Advisor), the Trust's investment advisor,
Touchstone Securities, Inc. (the Underwriter), the Trust's principal
underwriter, or Integrated Fund Services, Inc. (Integrated), the Trust's
administrator, transfer agent and accounting services agent. The Advisor, the
Underwriter and Integrated are each wholly-owned, indirect subsidiaries of The
Western and Southern Life Insurance Company.
MANAGEMENT AGREEMENT
Each Fund's investments are managed by the Advisor under the terms of a
Management Agreement. Under the Management Agreement, each Fund pays the Advisor
a fee, computed and accrued daily and paid monthly, at an annual rate of 0.50%
of its respective average daily net assets up to $100 million, 0.45% of such net
assets from $100 million to $200 million, 0.40% of such net assets from $200
million to $300 million and 0.375% of such net assets in excess of $300 million.
The Trust and the Advisor have entered into an agreement to contractually limit
operating expenses. The maximum operating expense limit in any year with respect
to a Fund is based on a percentage of the average daily net assets of the Fund:
California Tax-Free Money Market Fund - 0.75%; Florida Tax-Free Money Market
Fund - 0.75%; Ohio Insured Tax-Free Fund - 0.75% for Class A shares, 1.50% for
Class B and Class C shares; Ohio Tax-Free Money Market Fund - 0.75% for Retail
shares and 0.50% for Institutional shares; Tax-Free Intermediate Term Fund -
0.99% for Class A shares, 1.74% for Class B and Class C shares; Tax-Free Money
Market Fund, - 0.89% for Class A shares and 1.15% for Class S shares. The fee
waivers and expense limitations will remain in effect until at least June 30,
2004.
Pursuant to this expense limitation agreement, during the six months ended
December 31, 2003, the Advisor waived $87,192 of its advisory fees for the
California Tax-Free Money Market Fund; waived $45,324 of its advisory fees for
the Florida Tax-Free Money Market Fund; waived $110,860 of its advisory fees for
the Ohio Insured Tax-Free Fund; waived $113,882 of its advisory fees for the
Ohio Tax-Free Money Market Fund; waived $65,209 of its advisory fees for the
Tax-Free Intermediate Term Fund; and waived $74,747 of its advisory fees for the
Tax-Free Money Market Fund.
30
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
================================================================================
ADMINISTRATION AGREEMENT
Under the terms of an Administration Agreement, Integrated supplies executive
and regulatory compliance services, supervises the preparation of tax returns,
and coordinates the preparation of reports to and filings with the Securities
and Exchange Commission and state securities authorities and materials for
meetings of the Board of Trustees. For these services, Integrated receives a
monthly fee from each Fund based on the Fund's net assets.
TRANSFER AGENT AGREEMENT
The Trust has entered into a Transfer Agency Agreement between the Trust and
Integrated, the Trust's transfer agent, shareholder service agent and accounting
agent. Under the terms of the agreement, Integrated maintains the records for
each shareholder's account, answers shareholders' inquiries concerning their
accounts, processes purchases and redemptions of each Fund's shares, acts as
dividend and distribution disbursing agent and performs other shareholder
service functions. For these services, Integrated receives a monthly fee per
shareholder account from each Fund, subject to a minimum monthly fee for each
Fund, or for each class of shares of a Fund, as applicable. In addition, each
Fund pays Integrated out-of-pocket expenses including, but not limited to,
postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement between the Trust and
Integrated, Integrated calculates the daily net asset value per share and
maintains the financial books and records of each Fund. For these services,
Integrated receives a monthly fee per fund, based on average net assets, of each
Fund subject to an additional monthly fee for each additional class of shares.
In addition, each Fund pays certain out-of-pocket expenses incurred by
Integrated in obtaining valuations of such Fund's portfolio securities.
UNDERWRITING AGREEMENT
The Underwriter is the Funds' principal underwriter and, as such, acts as
exclusive agent for distribution of the Funds' shares. Under the terms of the
Underwriting Agreement between the Trust and the Underwriter, the Underwriter
earned $1,832 and $2,783 from underwriting and broker commissions on the sale of
Class A shares of the Ohio Insured Tax-Free Fund and the Tax-Free Intermediate
Term Fund, respectively, during the six months ended December 31, 2003. In
addition, the Underwriter collected $258 and $403 of contingent deferred sales
loads on the redemption of Class B shares and C shares of the Ohio Insured
Tax-Free Fund and the Tax-Free Intermediate Term Fund, respectively.
PLANS OF DISTRIBUTION
The Trust has a Plan of Distribution (Class A Plan) under which shares of the
California Tax-Free Money Market Fund and the Florida Tax-Free Money Market Fund
and Class A shares or Retail shares of all other Funds may directly incur or
reimburse the Advisor or the Underwriter for expenses related to the
distribution and promotion of shares. The annual limitation for payment of such
expenses under the Class A Plan is 0.25% of average daily net assets
attributable to such shares.
The Trust also has a Plan of Distribution (Class B Plan) and a Plan of
Distribution (Class C Plan) under which Class B shares and Class C shares of the
Ohio Insured Tax-Free Fund and the Tax-Free Intermediate Term Fund may directly
incur or reimburse the Advisor or the Underwriter for expenses related to the
distribution and promotion of shares. The annual limitation for payment of such
expenses under each of the Class B Plan and Class C Plan is 1.00% of average
daily net assets attributable to Class B shares and Class C shares.
31
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
===========================================================================================================
The Trust also has a Plan of Distribution (Class S Plan) under which Class S shares of the Tax-Free
Money Market Fund may directly incur or reimburse the Advisor or the Underwriter for expenses
related to the distribution and promotion of shares. The annual limitation for payment of such
expenses under the Class S Plan is 1.00% of average daily net assets attributable to such
shares. The current distribution expense fee for Class S shares is limited to 0.60% of average
daily net assets attributable to such shares.
5. CAPITAL SHARE TRANSACTIONS
Capital share transactions for the California Tax-Free Money Market Fund, the Florida Tax-Free Money
Market Fund, the Ohio Tax-Free Money Market Fund and the Tax-Free Money Market Fund are identical
to the dollar value of those transactions as shown in the Statements of Changes in Net Assets.
Proceeds and payments on capital shares as shown in the Statements of Changes in Net Assets
for the Ohio Insured Tax-Free Fund and the Tax-Free Intermediate Term Fund are the result of the following
capital share transactions:
- --------------------------------------------------------------------------------------------------------------
OHIO INSURED TAX-FREE INTERMEDIATE
TAX-FREE FUND TERM FUND
- --------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
DECEMBER 31, ENDED DECEMBER 31 ENDED
2003 JUNE 30, 2003 JUNE 30,
(UNAUDITED) 2003 (UNAUDITED) 2003
- --------------------------------------------------------------------------------------------------------------
CLASS A
Shares sold ............................... 3,480,668 13,664,501 170,717 1,109,990
Shares reinvested ......................... 88,337 148,905 39,327 82,561
Shares redeemed ........................... (3,719,964) (13,536,660) (329,340) (1,142,195)
-------------------------------------------------------------
Net increase (decrease) in
shares outstanding ..................... (150,959) 276,746 119,296 (50,356)
Shares outstanding, beginning of period ... 4,827,306 4,550,560 3,021,674 2,971,318
-------------------------------------------------------------
Shares outstanding, end of period ......... 4,676,347 4,827,306 2,902,378 3,021,674
-------------------------------------------------------------
CLASS B
Shares sold ............................... 5,198 11,165 11,199 28,873
Shares reinvested ......................... 497 595 124 210
Shares redeemed ........................... (301) (338) (2,721) (1,331)
-------------------------------------------------------------
Net increase in shares outstanding ........ 5,394 11,422 8,602 27,752
Shares outstanding, beginning of period ... 24,874 13,452 33,112 5,360
-------------------------------------------------------------
Shares outstanding, end of period ......... 30,268 24,874 41,714 33,112
-------------------------------------------------------------
CLASS C
Shares sold ............................... 45,242 241,986 19,952 261,362
Shares reinvested ......................... 11,353 14,132 3,716 7,762
Shares redeemed ........................... (32,619) (70,921) (50,864) (152,387)
-------------------------------------------------------------
Net increase (decrease) in
shares outstanding ..................... 23,976 185,197 (27,196) 116,737
Shares outstanding, beginning of period ... 595,543 410,346 437,070 320,333
-------------------------------------------------------------
Shares outstanding, end of period ......... 619,519 595,543 409,874 437,070
-------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
32
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
================================================================================
6. PORTFOLIO COMPOSITION (UNAUDITED)
As of December 31, 2003, the Ohio Insured Tax-Free Fund and the Ohio Tax-Free
Money Market Fund were invested exclusively in debt obligations issued by the
State of Ohio and its political subdivisions, agencies, authorities and
instrumentalities and by other issuers, the interest from which is exempt from
Ohio personal income tax. The California Tax-Free Money Market Fund was invested
exclusively in debt obligations issued by the State of California and its
political subdivisions, agencies, authorities and instrumentalities and by other
issuers, the interest from which is exempt from California income tax. The
Florida Tax-Free Money Market Fund was 90.9% invested in debt obligations issued
by the State of Florida and its political subdivisions, agencies, authorities
and instrumentalities and by other issuers, the value of which is exempt from
the Florida intangible personal property tax. As of December 31, 2003, 34.4% of
the portfolio securities of the Tax-Free Money Market Fund were concentrated in
the State of Ohio and 7.3% in the State of Kentucky. For information regarding
portfolio composition by state for the Tax-Free Intermediate Term Fund, see the
Fund's Portfolio of Investments.
The California Tax-Free Money Market Fund, the Florida Tax-Free Money Market
Fund, the Ohio Insured Tax-Free Fund, and the Ohio Tax-Free Money Market Fund
are each non-diversified Funds under the 1940 Act. Thus, investments may be
concentrated in fewer issuers than those of a diversified fund. As of December
31, 2003, there were no concentrations of investments (10% or greater) in any
one issuer.
The California Tax-Free Money Market Fund, the Florida Tax-Free Money Market
Fund, the Ohio Tax-Free Money Market Fund and the Tax-Free Money Market Fund
each invest in municipal securities maturing in 13 months or less and having a
short-term rating in one of the top two ratings categories by at least two
nationally recognized statistical rating agencies (or by one such agency if a
security is rated by only that agency) or, if unrated, are determined by the
Adviser, under the supervision of the Board of Trustees, to be of comparable
quality.
As of December 31, 2003, 82.0% of the Ohio Insured Tax-Free Fund's long-term
portfolio securities were either (1) insured by an insurance policy obtained
from a recognized insurer which carries a rating of AAA by S&P or Aaa by
Moody's, (2) guaranteed as to the payment of interest and principal by an agency
or instrumentality of the U.S. Government or (3) secured as to the payment of
interest and principal by an escrow account consisting of obligations of the
U.S. Government. Three private insurers individually insure more than 10% of the
Ohio Insured Tax-Free Fund's portfolio securities and collectively insure 68.0%
of its portfolio securities.
As of December 31, 2003, 47.5% of the Tax-Free Intermediate Term Fund's
portfolio securities were rated AAA/Aaa [using the higher of Standard & Poor's
Corporation (S&P) or Moody's Investors Service, Inc. (Moody's) ratings], 31.5%
were rated AA/Aa, 16.0% were rated A/A, and 5.0% were rated Baa/BBB.
33
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
===================================================================================================================
The concentration of investments for each Fund as of December 31, 2003, classified by revenue source,
was as follows:
- ---------------------------------------------------------------------------------------------------------------------
California Florida Ohio
Tax-Free Tax-Free Ohio Tax-Free Tax-Free Tax-Free
Money Money Insured Money Intermediate Money
Market Market Tax-Free Market Term Market
Fund Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------
General Obligations ............ 2.3% 3.6% 66.1% 13.4% 30.3% 20.9%
---------------------------------------------------------------------------------
Revenue Bonds:
Industrial Development/
Pollution Control ........ 11.1% 7.0% -- 10.2% 9.0% 17.8%
Hospital/Health Care ........ 3.5% 10.9% 8.5% 25.0% 15.8% 3.9%
Utilities ................... 22.0% 11.4% 8.6% 18.2% 8.6% 19.1%
Education ................... 10.1% 12.5% 7.9% 6.1% 10.2% 7.7%
Housing/Mortgage ............ 26.2% 40.7% 3.0% 6.6% 10.4% 12.5%
Economic Development ........ 0.7% 1.9% -- 7.0% -- 7.1%
Public Facilities ........... 12.8% 6.1% -- 3.3% -- 5.1%
Transportation .............. 7.8% 0.8% 3.4% 3.6% 7.1% --
Special Tax ................. 2.9% -- -- 4.3% -- --
Miscellaneous ............... 0.6% 5.1% 2.5% 2.3% 8.6% 5.9%
---------------------------------------------------------------------------------
Total Investments .............. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
=================================================================================
- ---------------------------------------------------------------------------------------------------------------------
7. MERGER
On November 20, 2003, the Board of Trustees of the Trust approved an Agreement and Plan of Reorganization whereby
shares of the Touchstone Tax-Free Intermediate Term Fund will be exchanged for shares of the Touchstone
Ohio Insured Tax-Free Fund in a tax-free exchange. The Agreement and Plan of Reorganization is subject to
shareholder approval.
34
CALIFORNIA TAX-FREE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003 (UNAUDITED)
=====================================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS - 16.6% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 200,000 Poway, CA, COP (City Office Bldg. Proj.) ........................ 3.000 01/01/04 $ 200,000
185,000 California St. UT GO ............................................ 6.300 02/01/04 185,771
125,000 Oakland-Alameda Co., CA, Coliseum Auth. Lease Rev ............... 5.000 02/01/04 125,419
425,000 California St. Pub. Wks. Brd. Lease Rev. Dept.
Gen. Svcs. (Teale Data Ctr.) .................................... 2.000 03/01/04 425,674
475,000 Coachella, CA, Wtr. Auth. Rev ................................... 2.000 03/01/04 475,658
770,000 Imperial Co., CA, Trans. Auth. Sales Tax Rev .................... 2.000 03/01/04 771,070
585,000 Norco, CA, Redev. Agy. Tax Allocation ........................... 2.000 03/01/04 585,957
350,000 San Diego Co., CA, Reg. Trans. Comm. Sales Tax Rev .............. 6.000 04/01/04 354,311
465,000 Trinity Co., CA, Pub. Util. Dist. COP ........................... 3.000 04/01/04 466,951
100,000 Corona-Norco, CA, USD COP ....................................... 4.000 04/15/04 100,848
105,000 Alhambra, CA, Redev. Agy. Tax Allocation ........................ 3.000 05/01/04 105,682
150,000 Alhambra, CA, Redev. Tax Agy. Allocation Prerefunded @ 102 ...... 5.350 05/01/04 155,131
200,000 California St. UT GO Prerefunded @ 102 .......................... 6.000 05/01/04 207,279
890,000 San Francisco, CA, City & Co. Arpt. Rev. Prerefunded @ 101 ...... 6.000 05/01/04 913,274
350,000 Long Beach, CA, Harbor Rev. Mandatory Put Ser. A ................ 4.000 05/14/04 353,576
300,000 Long Beach, CA, Harbor Rev. Mandatory Put Ser. B ................ 4.000 05/14/04 303,201
125,000 San Diego, CA, Pub. Fac. Fin. Auth. Swr. Rev .................... 4.600 05/15/04 126,627
500,000 East Bay, CA, Muni. Util. Dist. Wtr. Sys. Rev. Prerefunded @ 102 6.300 06/01/04 520,815
200,000 East Bay, CA, Muni. Util. Dist. Wtr. Sys. Rev. Prerefunded @ 102 6.500 06/01/04 208,480
125,000 Fullerton, CA, Sch. Dist. COP ................................... 3.800 06/01/04 126,445
100,000 San Mateo Co., CA, Trans. Dist .................................. 4.200 06/01/04 101,322
100,000 Vallejo City, CA, USD COP ....................................... 2.000 06/01/04 100,413
200,000 Los Angeles, CA, USD UT GO ...................................... 4.000 07/01/04 202,985
370,000 Northern California Pwr. Agy. Pub. Pwr. Rev ..................... 5.000 07/01/04 377,293
255,000 Placer Co., CA, Wtr. Agy. Rev. COP .............................. 2.000 07/01/04 256,140
175,000 Puerto Rico Commonwealth Prerefunded @ 101.5 .................... 6.450 07/01/04 182,254
100,000 Puerto Rico Elec. Pwr. Auth. Rev ................................ 5.000 07/01/04 101,965
110,000 Puerto Rico Elec. Pwr. Auth. Rev. Prerefunded @ 102 ............. 6.125 07/01/04 114,929
1,000,000 Sacramento, CA, Cogeneration Auth. Rev.
(Procter & Gamble Proj.) ........................................ 7.000 07/01/04 1,029,732
140,000 Sacramento, CA, USD UT GO ....................................... 7.000 07/01/04 144,143
100,000 California St. UT GO ............................................ 5.400 08/01/04 102,520
165,000 Healdsburg, CA, UT GO ........................................... 2.500 08/01/04 166,433
500,000 Oakland-Alameda Co., CA, USD UT GO .............................. 5.000 08/01/04 511,374
100,000 Puerto Rico Muni. Fin. Agy ...................................... 5.000 08/01/04 102,291
240,000 San Jose, CA, Redev. Agy. Tax Allocation ........................ 4.750 08/01/04 245,215
130,000 Sunnyvale, CA, Redev. Agy. Tax Allocation (Central Core Proj.) .. 2.000 08/01/04 130,722
525,000 Orange Co., CA, Trans. Auth. Toll Rd. Rev ....................... 2.000 08/15/04 528,081
260,000 San Diego Co., CA, Ed. Fac. Auth. No. 1 Lease Rev ............... 2.000 08/15/04 261,526
100,000 Cucamonga Co., CA, Wtr. Dist. COP ............................... 4.600 09/01/04 102,527
140,000 Dinuba, CA, Redev. Agy. Tax Allocation
(Merged City Redev. Proj. No. 2) ................................ 2.000 09/01/04 140,923
150,000 San Diego, CA, Redev. Agy. Tax Allocation (Centre City) ......... 2.500 09/01/04 151,334
250,000 Coalinga, CA, Pub. Fin. Auth. Loc. Oblig. Rev ................... 5.250 09/15/04 257,238
250,000 California St. UT GO ............................................ 5.000 10/01/04 257,255
100,000 Contra Costa, CA, Wtr. Dist. Rev. Prerefunded @ 102 ............. 5.700 10/01/04 105,482
100,000 Inglewood, CA, USD 1998 Ser. B .................................. 2.000 10/01/04 100,713
35
CALIFORNIA TAX-FREE MONEY MARKET FUND
(CONTINUED)
=====================================================================================================================
PRINCIPAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS - 16.6% COUPON MATURITY MARKET
AMOUNT (CONTINUED) RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 145,000 Lodi, CA, COP (1996 Pub. Impt Fin. Proj.) ....................... 5.100 10/01/04 $ 149,338
450,000 Los Angeles Co., CA, Pub. Wks. Fin. Auth. Rev ...................
Prerefunded @ 102 ............................................... 6.000 10/01/04 475,297
100,000 Los Angeles, CA, USD COP ........................................ 4.000 10/01/04 102,207
150,000 Culver City, CA, Redev. Fin. Auth. Rev .......................... 4.500 11/01/04 153,226
240,000 California Statewide Cmntys. Dev. Auth. MFH Rev .................
(Fountains Seacliff Apts.) ...................................... 2.100 11/15/04 241,402
------------
TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS ............. $ 13,608,449
------------
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE DEMAND NOTES - 75.4% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$1,310,000 ABAG Fin. Auth. for Nonprofit Corp., CA, COP, Ser. D ............ 1.300 01/01/04 $ 1,310,000
1,500,000 Alameda Co., CA, IDA Rev. (PJs Lumber, Inc. Proj.) .............. 1.240 01/01/04 1,500,000
1,025,000 Berkeley, CA, Rev. (Berkeley YMCA) .............................. 1.200 01/01/04 1,025,000
3,010,000 California HFA MFH Rev .......................................... 1.280 01/01/04 3,010,000
240,000 California Infrastructure & Econ. Dev. IDR
(Metrotile Mfg. Proj.) .......................................... 1.600 01/01/04 240,000
1,000,000 California PCR Fin. Auth. (Wst. Mgmt. Proj.) .................... 1.290 01/01/04 1,000,000
300,000 California PCR Fin. Auth. Res. Recovery
(Burney Forest Prod. Proj. A) ................................... 1.210 01/01/04 300,000
2,000,000 California St. Dept. Wtr. Res. Pwr. Supply Rev .................. 1.330 01/01/04 2,000,000
900,000 California Statewide Cmntys. Dev. Auth. (Univ. Retirement) ...... 1.300 01/01/04 900,000
2,500,000 El Monte, CA, COP (Cmnty. Impt. Proj.) .......................... 1.300 01/01/04 2,500,000
1,500,000 Emeryville, CA, Redev. Agy. MFA Rev. (Bay St. Apts.) ............ 1.260 01/01/04 1,500,000
1,400,000 Hanford, CA, Swr. Rev ........................................... 1.800 01/01/04 1,400,000
1,100,000 Irvine Ranch, CA, Wtr. Dist ..................................... 1.116 01/01/04 1,100,000
1,200,000 Irvine, CA, Impt. Brd. Act 1915 ................................. 1.270 01/01/04 1,200,000
1,000,000 Los Angeles, CA, Cmnty. Redev. Agy. MFH Rev. (Views at 270) ..... 1.300 01/01/04 1,000,000
200,000 Los Angeles, CA, Reg. Arpt. (LAX) ............................... 1.190 01/01/04 200,000
1,700,000 Los Angeles, CA, Reg. Arpt. (LAX) ............................... 1.240 01/01/04 1,700,000
3,000,000 Los Angeles, CA, Wtr. & Pwr. Rev ................................ 1.200 01/01/04 3,000,000
400,000 Los Angeles, CA, Wtr. & Pwr. Rev ................................ 1.200 01/01/04 400,000
2,250,000 Los Angeles, CA, Wtr. & Pwr. Rev ................................ 1.270 01/01/04 2,250,000
1,500,000 Orange Co., CA, Sani. Dist. COP ................................. 1.270 01/01/04 1,500,000
2,900,000 Puerto Rico Commonwealth Hwy. & Trans. Auth. Rev ................ 1.230 01/01/04 2,900,000
1,450,000 Riverside Co., CA, IDA (Advance Business Graphics) .............. 1.400 01/01/04 1,450,000
1,300,000 Riverside Co., CA, IDA (Advanced Business Graphics) Ser. B ...... 1.400 01/01/04 1,300,000
1,400,000 Sacramento Co., CA, MFH Rev ..................................... 1.200 01/01/04 1,400,000
2,800,000 Sacramento, CA, USD COP ......................................... 1.250 01/01/04 2,800,000
1,000,000 Salinas, CA, MFH Rev. (Brentwood Garden) ........................ 1.200 01/01/04 1,000,000
800,000 San Bernardino Co., CA, Capt. Impt. COP ......................... 1.220 01/01/04 800,000
1,000,000 San Francisco, CA, City & Co. Redev. Agy. MFA Rev.
(Derek Silva Cmnty.) ............................................ 1.300 01/01/04 1,000,000
270,000 San Jacinto, CA, USD COP ........................................ 1.200 01/01/04 270,000
1,250,000 Sausalito, CA, MFH Rev. (Rotary Village Sr. Hsg.) ............... 1.250 01/01/04 1,250,000
1,810,000 Sweetwater, CA, USD COP ......................................... 1.200 01/01/04 1,810,000
600,000 Upland, CA, Arpt. Dev. Rev. (Mtn. Springs) ...................... 1.250 01/01/04 600,000
2,000,000 ABAG Fin. Auth. Nonprofit Corps. MFH Rev. (Vintage Chateau) ..... 1.200 01/07/04 2,000,000
385,000 California Ed. Fac. Auth. Rev. (Mt. St. Mary's College) ......... 1.250 01/07/04 385,000
36
CALIFORNIA TAX-FREE MONEY MARKET FUND
(CONTINUED)
=====================================================================================================================
PRINCIPAL FLOATING & VARIABLE DEMAND NOTES - 75.4% COUPON MATURITY MARKET
AMOUNT (CONTINUED) RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$1,000,000 California Health Fac. Auth. (Catholic Healthcare) .............. 1.250 01/07/04 $ 1,000,000
325,000 California Infrastructure & Econ. Dev. ..........................
(Independent System Oper.) ...................................... 1.250 01/07/04 325,000
1,555,000 California PCR Fin. Auth. Sld. Wst. Disp ........................
(Mission Trail Wst. Sys.) ....................................... 1.250 01/07/04 1,555,000
275,000 Huntington Park, CA, Pub. Fin. Auth. Lease Rev .................. 1.350 01/07/04 275,000
2,060,000 Long Beach, CA, Brd. Fin. Auth. Lease Rev .......................
(Long Beach Museum of Art) ...................................... 1.070 01/07/04 2,060,000
1,600,000 Modesto, CA, MFH Rev. (Westdale Commons) ........................ 1.080 01/07/04 1,600,000
2,000,000 San Francisco, CA, City & Co. Redev. Agy. MFA Rev ...............
(Bayside Village Proj.) ......................................... 1.220 01/07/04 2,000,000
1,600,000 Vacaville, CA, IDA IDR (Leggett & Platt, Inc.) .................. 1.200 01/07/04 1,600,000
400,000 California PCR Fin. Auth. Rev. (Southdown, Inc.) ................ 1.100 01/15/04 400,000
3,100,000 California PCR Fin. Auth. Rev. (Southdown, Inc.) Ser. B ......... 1.100 01/15/04 3,100,000
------------
TOTAL FLOATING & VARIABLE DEMAND NOTES .......................... $ 61,915,000
------------
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL COUPON MATURITY MARKET
AMOUNT ADJUSTABLE RATE PUT BONDS - 3.6% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$3,000,000 ABN AMRO Munitops Trust Cert. 2003-26 ........................... 1.100 05/12/04 $ 3,000,000
------------
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL COUPON MATURITY MARKET
AMOUNT COMMERCIAL PAPER - 4.1% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$3,400,000 California Infras. Econ. Dev. Bank (Salvation Army) EDR ......... 1.080 01/28/04 $ 3,400,000
------------
TOTAL INVESTMENT SECURITIES - 99.7%
(Amortized Cost $81,923,449) .................................... $ 81,923,449
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% .................... 280,684
------------
NET ASSETS - 100.0% ............................................. $ 82,204,133
============
See accompanying notes to portfolio of investments and notes to financial statements.
37
FLORIDA TAX-FREE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003 (UNAUDITED)
=====================================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS - 23.3% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 100,000 King Co., WA, Swr. LT GO Prerefunded @ 102 ...................... 6.200 01/01/04 $ 102,000
125,000 Lee Co., FL, Hosp. Brd. Directors Rev. (Lee Mem. Health Sys.) ... 5.000 04/01/04 126,221
250,000 Florida St. Brd. Ed. Cap. Outlay ................................ 6.000 06/01/04 255,084
100,000 Florida St. Brd. Ed. Cap. Outlay Prerefunded @ 101 .............. 6.000 06/01/04 103,026
200,000 Florida State Brd. Ed. Cap. Outlay .............................. 4.000 06/01/04 202,442
220,000 Missouri St. COP (Bonne Terre Prison) ........................... 4.000 06/01/04 222,220
650,000 St. Petersburg, FL, Util. Tax Rev ............................... 5.000 06/01/04 660,616
100,000 Florida St. Brd. Ed. Lottery Rev ................................ 4.100 07/01/04 101,438
150,000 Florida St. Brd. Ed. Lottery Rev ................................ 5.000 07/01/04 152,909
100,000 Florida St. Brd. Fin. Dept. General Svcs. Rev ................... 5.000 07/01/04 101,988
375,000 Florida St. Brd. Fin. Dept. General Svcs. Rev. Escrowed to Call . 4.900 07/01/04 385,613
200,000 Florida St. Dept. of Trans. Tpk. Auth. Rev ...................... 5.500 07/01/04 204,356
100,000 Florida St. UT GO (Dade Co. Rd.) Prerefunded @101 ............... 5.000 07/01/04 102,931
150,000 Seminole Co., FL, Sch. Brd. COP Prerefunded @ 102 ............... 5.900 07/01/04 156,574
150,000 Seminole Co., FL, Sch. Brd. COP Prerefunded @ 102 ............... 6.500 07/01/04 155,535
170,000 Duval Co., FL, Sch. Dist ........................................ 6.125 08/01/04 174,857
250,000 Florida St. Dept. Corrections COP Prerefunded @ 102 ............. 6.000 08/01/04 261,895
1,080,000 Johnson Co., KY, Justice Ctr. BANS .............................. 1.300 08/01/04 1,080,001
425,000 Florida St. Brd. Regt. Hsg. Rev ................................. 2.500 10/01/04 429,200
175,000 Palm Beach Co., FL, Wtr. & Swr. Rev ............................. 2.000 10/01/04 176,079
925,000 Tohopekaliga, FL, Wtr. Auth. Util. Sys. Rev ..................... 2.000 10/01/04 931,462
------------
TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS ............. $ 6,086,447
------------
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE DEMAND NOTES - 63.4% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 600,000 Broward Co., FL, HFA MFH Rev. (Southern Pointe Proj.) ........... 1.200 01/01/04 $ 600,000
235,000 Dade Co., FL, IDA Rev. (Spectrum Programs, Inc. Proj.) .......... 1.300 01/01/04 235,000
1,375,000 Duval Co., FL, HFA MFH Mtg. Rev. (Glades Apts. Proj.) ........... 1.200 01/01/04 1,375,000
950,000 Duval Co., FL, HFA MFH Rev. (Sunbeam Rd. Proj.) ................. 1.200 01/01/04 950,000
200,000 Gulf Breeze, FL, Rev. (Local Govt.) ............................. 1.150 01/01/04 200,000
350,000 Gulf Breeze, FL, Rev. (Muni Bond) ............................... 1.150 01/01/04 350,000
150,000 Jacksonville, FL, Health Facs. Rev. (River Garden Covers Proj.) . 1.200 01/01/04 150,000
210,000 Manatee Co., FL, PCR (Florida Pwr. & Light Co. Proj.) ........... 1.330 01/01/04 210,000
1,155,000 Orange Co., FL, Health Facs. (Adventist Health Sys.) ............ 1.300 01/01/04 1,155,000
1,400,000 Orlando & Orange Co., FL, Expwy. Auth. Rev ...................... 1.200 01/01/04 1,400,000
800,000 Palm Beach Co., FL, Rev. (Henry Morrison Flagler) ............... 1.120 01/01/04 800,000
1,000,000 Palm Beach Co., FL, Rev. (Morse Oblig. Group) ................... 1.270 01/01/04 1,000,000
500,000 Palm Beach Co., FL, Sch. Brd. COP ............................... 1.170 01/01/04 500,000
200,000 Univ. of North Florida 1998 Parking Rev. Bonds .................. 1.300 01/01/04 200,000
1,305,000 Broward Co., FL, HFA MFH Rev. (Fisherman's Landing) ............. 1.100 01/07/04 1,305,000
250,000 Broward Co., FL, HFA MFH Rev. (Jacaranda Village Apts.) ......... 1.100 01/07/04 250,000
300,000 Broward Co., FL, HFA MFH Rev. (Margate Invts. Proj.) ............ 1.100 01/07/04 300,000
1,115,000 Broward Co., FL, HFA MFH Rev. (Reflections Apts. Proj.) ......... 1.100 01/07/04 1,115,000
600,000 Clay Co., FL, HFA MFH Rev ....................................... 1.100 01/07/04 600,000
500,000 Clay Co., FL, HFA MFH Rev. (Bluff Hsg.) ......................... 1.100 01/07/04 500,000
765,000 Florida HFA MFH Rev. (Carlton Arms II Proj.) .................... 1.310 01/07/04 765,000
500,000 Jacksonville, FL, Cap. Proj. Rev ................................ 1.100 01/07/04 500,000
38
FLORIDA TAX-FREE MONEY MARKET FUND
(CONTINUED)
=====================================================================================================================
PRINCIPAL FLOATING & VARIABLE DEMAND NOTES - 63.4% COUPON MATURITY MARKET
AMOUNT (CONTINUED) RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 500,000 Lee Co., FL, IDR Ed. Fac. Rev. (Canterbury Sch. Proj.) .......... 1.200 01/07/04 $ 500,000
605,000 Marion Co., FL, HFA Rev. (Paddock Apts.) ........................ 1.100 01/07/04 605,000
500,000 Palm Beach Co., FL, Rev. (Jewish Cmnty. Campus Proj.) ........... 1.150 01/07/04 500,000
105,000 Pinellas Co., FL, Ed. Fac. Auth. Rev. (Canterbury) .............. 1.100 01/07/04 105,000
240,000 Univ. of South Florida Fndtn., Inc. COP ......................... 1.100 01/07/04 240,000
150,000 Univ. of South Florida Fndtn., Inc. COP ......................... 1.100 01/07/04 150,000
------------
TOTAL FLOATING & VARIABLE DEMAND NOTES .......................... $ 16,560,000
------------
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL COUPON MATURITY MARKET
AMOUNT ADJUSTABLE RATE PUT BONDS - 12.9% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 425,000 Corpus Christi, TX, IDC EDR (TX Air Invts. Co. Proj.) ........... 1.250 02/01/04 $ 425,000
540,000 Eastern Sts. Tax Exmp. Mtg. Brd. Tr. Adjustable Rate Ctfs ....... 5.190 03/01/04 540,000
1,400,000 Putnam Co., FL, Dev. Auth. PCR, Ser. H-1
(Seminole Elec. Coop.) .......................................... 1.120 06/15/04 1,400,000
1,000,000 ABN AMRO Munitops Trust Cert. (FL Dept. of Trans.) .............. 1.250 08/18/04 1,000,000
------------
TOTAL ADJUSTABLE RATE PUT BONDS ................................. $ 3,365,000
------------
TOTAL INVESTMENT SECURITIES - 99.6%
(Amortized Cost $26,011,447) .................................... $ 26,011,447
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.4% .................... 97,808
------------
NET ASSETS - 100.0% ............................................. $ 26,109,255
============
See accompanying notes to portfolio of investments and notes to financial statements.
39
OHIO INSURED TAX-FREE FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003 (UNAUDITED)
=====================================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS - 92.8% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 190,000 Cuyahoga Co., OH, Hosp. Rev. (Univ. Hosp.)
Escrowed to Maturity ............................................ 9.000 06/01/11 $ 237,160
365,000 Bexley, OH, CSD GO .............................................. 7.125 12/01/11 462,200
250,000 Westerville, OH, GO ............................................. 6.450 12/01/11 253,570
500,000 Strongsville, OH, CSD GO ........................................ 5.375 12/01/12 577,765
1,095,000 West Clermont, OH, LSD GO, Prerefunded @ 102 .................... 6.900 12/01/12 1,230,035
500,000 Ohio St. Bldg. Auth. Rev. (Juvenile Correctional Bldg.),
Prerefunded @ 102 ............................................... 6.600 10/01/14 530,605
530,000 Ottawa Co., OH, GO .............................................. 5.750 12/01/14 580,594
1,000,000 Portage Co., OH, GO ............................................. 6.200 12/01/14 1,064,000
400,000 Warren, OH, Waterworks Rev ...................................... 5.500 11/01/15 464,300
1,000,000 Buckeye Valley, OH, LSD GO ...................................... 6.850 12/01/15 1,250,200
1,260,000 Cleveland, OH, Arpt. Sys. Rev ................................... 5.125 01/01/17 1,349,712
750,000 Butler Co., OH, Trans. Impt. Dist ............................... 5.125 04/01/17 811,958
415,000 Toledo, OH, Swr. Sys. Rev ....................................... 6.350 11/15/17 440,987
85,000 Toledo, OH, Swr. Sys. Rev ....................................... 6.350 11/15/17 90,583
1,000,000 Springfield, OH, CSD GO ......................................... 5.000 12/01/17 1,087,570
655,000 Twinsburg, OH, Park & Land GO ................................... 5.500 12/01/17 737,379
1,000,000 Ohio St. Bldg. Auth. Rev. (Adult Correctional Bldg.) ............ 5.250 10/01/18 1,093,730
1,000,000 Univ. of Cincinnati, OH, General Receipts Rev ................... 5.750 06/01/19 1,142,210
1,000,000 Lucas Co., OH, Hsg. Dev. Corp. (Northgate Apts.) ................ 5.950 07/01/19 1,020,850
1,000,000 Lorain Co., OH, Hosp. Rev. (Catholic Health Partners) ........... 5.500 09/01/19 1,104,360
1,000,000 Lucas Co., OH, Hosp. Rev. (Promedia Health) ..................... 5.625 11/15/19 1,121,730
1,000,000 Avon Lake, OH, CSD GO ........................................... 5.500 12/01/19 1,124,910
2,145,000 Brunswick, OH, CSD GO ........................................... 5.750 12/01/19 2,458,555
745,000 Crawford Co., OH, GO ............................................ 4.750 12/01/19 771,157
2,000,000 Hamilton, OH, CSD GO ............................................ 5.500 12/01/19 2,249,819
1,250,000 Kings, OH, LSD GO ............................................... 5.950 12/01/19 1,456,288
1,085,000 West Clermont, OH, LSD GO ....................................... 5.000 12/01/19 1,158,118
500,000 Akron, OH, GO ................................................... 5.800 11/01/20 569,865
210,000 Butler Co., OH, GO .............................................. 5.250 12/01/20 229,509
1,000,000 Greene Co., OH, Swr. Sys. Rev ................................... 5.625 12/01/20 1,127,110
1,500,000 Nordonia Hills, OH, CSD GO ...................................... 5.375 12/01/20 1,648,590
715,000 Sylvania, OH, CSD GO ............................................ 4.750 12/01/20 740,740
850,000 West Chester Twp., OH, GO ....................................... 5.000 12/01/20 899,708
1,210,000 Cincinnati, OH, Tech. College Rev ............................... 5.250 10/01/21 1,313,733
525,000 Kings, OH, LSD GO ............................................... 6.050 12/01/21 612,271
500,000 Lake, OH, LSD GO (Stark Co.) .................................... 5.750 12/01/21 568,980
1,000,000 Monroe, OH, LSD Sch. Impt. GO ................................... 5.000 12/01/21 1,053,630
1,000,000 Summit Co., OH, GO Prerefunded @ 101 ............................ 6.000 12/01/21 1,202,370
700,000 Columbus-Polaris Hsg. Corp. Rev., Prerefunded @ 100 ............. 7.400 01/01/22 867,888
1,185,000 Akron, OH, Impt. GO ............................................. 5.000 12/01/22 1,246,466
700,000 Hamilton Co., OH, Swr. Sys. Rev ................................. 4.750 12/01/22 718,928
500,000 Morgan, OH, LSD GO .............................................. 5.750 12/01/22 569,365
1,200,000 Ross Twp., OH, LSD GO ........................................... 5.000 12/01/22 1,262,244
1,250,000 Scioto Valley, OH, LSD GO ....................................... 5.650 12/01/22 1,411,850
250,000 Ohio St. Higher Ed. Fac. Comm. Rev. (Xavier Univ.) .............. 5.000 05/01/23 260,783
1,050,000 Harrison, OH, Wst. Wtr. Sys. Rev ................................ 5.250 11/01/23 1,124,025
40
OHIO INSURED TAX-FREE FUND
(CONTINUED)
=====================================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS - 92.8% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$1,000,000 Akron, OH, Var. Purp. GO ........................................ 5.000 12/01/23 $ 1,041,580
1,000,000 Newark, OH, Var. Purp. GO ....................................... 4.750 12/01/23 1,020,590
1,000,000 Toledo, OH, CSD ................................................. 5.000 12/01/23 1,043,670
1,000,000 Hamilton, OH, CSD GO ............................................ 5.625 12/01/24 1,118,000
1,000,000 Hilliard, OH, CSD GO ............................................ 5.750 12/01/24 1,123,070
1,000,000 Kings, OH, LSD GO ............................................... 5.650 12/01/24 1,109,410
1,250,000 Ohio St. Univ. General Receipts Rev ............................. 5.750 12/01/24 1,403,838
1,250,000 Fremont, OH, Var. Purp. GO ...................................... 5.000 12/15/24 1,297,488
1,750,000 Eaton, OH, CSD GO ............................................... 5.000 12/01/25 1,812,230
1,500,000 Marysville, OH, EVSD GO ......................................... 5.000 12/01/25 1,548,960
1,000,000 Plain, OH, LSD GO ............................................... 5.000 12/01/25 1,031,140
1,000,000 Hilliard, OH, CSD GO ............................................ 5.750 12/01/28 1,119,950
910,000 Licking Heights, OH, LSD GO ..................................... 6.400 12/01/28 1,127,763
1,000,000 Erie Co., OH, Hosp. Fac. Rev. (Fireland Reg. Med. Ctr.) ......... 5.625 08/15/32 1,012,900
------------
TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS ............. $ 60,108,989
------------
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE DEMAND NOTES - 7.1% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$1,595,000 Hamilton, OH, Elec. Rev ......................................... 1.200 01/01/04 $ 1,595,000
1,700,000 Montgomery Co., OH, (Miami Valley Hosp.) ........................ 1.300 01/01/04 1,700,000
1,000,000 Ohio St. Univ. General Receipts Rev ............................. 1.150 01/01/04 1,000,000
300,000 Trumbull Co., OH, Healthcare Fac. Rev ........................... 1.350 01/01/04 300,000
------------
TOTAL FLOATING & VARIABLE DEMAND NOTES .......................... $ 4,595,000
------------
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT CASH EQUIVALENTS - 0.1% VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 56,000 Merrill Lynch Institutional Tax-Exempt Fund ..................... $ 56,000
------------
TOTAL INVESTMENT SECURITIES - 100.0%
(Amortized Cost $59,221,291) .................................... $ 64,759,989
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.0% .................... 29,834
------------
NET ASSETS - 100.0% ............................................. $ 64,789,823
============
See accompanying notes to portfolio of investments and notes to financial statements.
41
OHIO TAX-FREE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003 (UNAUDITED)
=====================================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS - 18.6% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 795,000 American Muni. Pwr. OH, Inc. BANS (Brewster Village) ............ 1.300 01/15/04 $ 795,000
1,250,000 Dover, OH, Muni. Elec. Sys. Impt. GO ............................ 1.750 01/15/04 1,250,214
1,400,000 Willard, OH, GO BANS ............................................ 2.000 01/29/04 1,400,639
970,000 American Muni. Pwr. OH, Inc. BANS (Woodsfield Village) .......... 1.400 02/05/04 970,000
375,000 Hamilton, OH, CSD GO BANS ....................................... 1.500 02/26/04 375,143
255,000 Fairborn, OH, CSD GO BANS ....................................... 2.000 03/02/04 255,274
5,000,000 Galion, OH, CSD BANS ............................................ 1.700 03/08/04 5,005,931
280,000 American Muni. Pwr. OH, Inc. BANS (Bradner Village) ............. 1.300 03/18/04 280,000
1,200,000 American Muni. Pwr. OH, Inc. BANS (Lodi Village) ................ 1.200 03/18/04 1,200,000
550,000 Hamilton, OH, GO BANS ........................................... 2.000 03/25/04 550,939
500,000 Crestline, OH, Swr. Impt. GO .................................... 1.680 03/31/04 500,526
773,992 Licking Heights, OH, LSD GO BANS ................................ 2.050 04/22/04 775,753
2,937,833 Deerfield Twp., OH, GO BANS ..................................... 1.550 05/13/04 2,940,477
250,000 Miami Co., OH, Hosp. Fac. (Upper Valley Med. Ctr.) .............. 5.200 05/15/04 253,747
3,450,000 Hillsboro, OH, CSD GO BANS ...................................... 1.780 05/20/04 3,456,926
4,260,000 Willard, OH, GO BANS ............................................ 1.460 05/20/04 4,263,386
783,800 London, OH, GO BANS ............................................. 1.910 06/03/04 785,298
3,000,000 Middletown, OH, CSD BANS ........................................ 1.750 06/10/04 3,007,868
3,300,000 Leipsic, OH, LSD BANS ........................................... 2.150 06/15/04 3,309,650
700,000 American Muni. Pwr. OH, Inc. BANS (New Bremen Proj.) ............ 1.300 07/08/04 700,000
350,000 Bellefontaine, OH, BANS (South Main Street) ..................... 1.560 07/29/04 350,616
500,000 Chillicothe, OH, BANS ........................................... 1.630 07/29/04 501,082
2,055,000 Clermont Co., OH, Wtr. Wrks. Rev ................................ 1.200 08/01/04 2,055,000
750,000 American Muni. Pwr. OH, Inc. BANS ............................... 1.300 08/05/04 750,000
1,000,000 Liberty Twp., OH, BANS .......................................... 1.460 08/11/04 1,002,174
500,000 Richland Co., OH, GO ............................................ 1.470 08/11/04 501,114
325,000 Hebron, OH, GO .................................................. 1.700 09/09/04 325,884
2,140,680 Jackson Co., OH, BANS ........................................... 1.550 09/09/04 2,145,773
2,000,000 Orange Village, OH, BANS ........................................ 1.500 09/16/04 2,002,787
500,000 Union Co., OH, Bldg. Renovation GO .............................. 1.420 09/16/04 500,944
2,650,000 Hebron, OH, Wtr. Wrks. Rev. BANS ................................ 1.850 09/29/04 2,660,701
372,000 Richland Co., OH, BANS .......................................... 1.750 09/29/04 373,477
450,000 Wilmington, OH, BANS ............................................ 1.530 10/01/04 450,930
4,300,000 American Muni. Pwr. OH, Inc. BANS (Genoa Proj.) ................. 1.300 10/07/04 4,300,000
830,000 American Muni. Pwr. OH, Inc. BANS (St. Mary's Proj.) ............ 1.200 10/07/04 830,000
1,500,000 Harrison Twp., OH BANS (Fire Station) ........................... 1.400 10/21/04 1,502,376
1,070,000 Olmsted Falls, OH, BANS ......................................... 1.450 10/21/04 1,072,120
610,000 Granville, OH, BANS ............................................. 1.460 10/27/04 611,285
2,250,000 American Muni. Pwr. OH, Inc. BANS (Pioneer Village Proj.) ....... 1.350 10/28/04 2,250,000
3,320,000 American Muni. Pwr. OH, Inc. BANS ............................... 1.200 11/04/04 3,320,000
575,000 American Muni. Pwr. OH, Inc. BANS (Yellow Springs Proj.) ........ 1.400 11/04/04 575,000
310,000 Marysville, OH, Swr. GO ......................................... 1.680 11/10/04 310,863
5,000,000 American Muni. Pwr. OH, Inc. BANS (Galion Proj.) ................ 1.400 11/12/04 5,000,000
1,495,000 American Muni. Pwr. OH, Inc. BANS (Monroeville Village) ......... 1.400 11/18/04 1,495,000
340,000 Akron, OH, Var. Purp ............................................ 2.000 12/01/04 342,528
475,000 Belmont Co., OH, GO ............................................. 2.000 12/01/04 478,225
625,000 American Muni. Pwr. OH, Inc. BANS (Amherst City Proj.) .......... 1.250 12/02/04 625,000
1,635,000 American Muni. Pwr. OH, Inc. BANS (Bowling Green Proj.) ......... 1.250 12/02/04 1,635,000
4,129,300 Deerfield Twp., OH, BANS ........................................ 1.580 12/02/04 4,138,643
42
OHIO TAX-FREE MONEY MARKET FUND
(CONTINUED)
=====================================================================================================================
PRINCIPAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS - 18.6% COUPON MATURITY MARKET
AMOUNT (CONTINUED) RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$1,115,000 American Muni. Pwr. OH, Inc. BANS (Edgerton Proj.) .............. 1.350 12/09/04 $ 1,115,000
570,000 American Muni. Pwr. OH, Inc. BANS (Oberlin Proj.) ............... 1.300 12/09/04 570,000
655,000 Trenton, OH, BANS ............................................... 1.960 12/09/04 658,692
590,000 Springboro, OH, BANS ............................................ 1.600 12/16/04 591,390
------------
TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS ............. $ 77,118,375
------------
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE DEMAND NOTES - 77.1% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 325,000 Akron, Bath & Copley, OH, Joint Twp. Hosp. Rev.
(Visiting Nurse Svcs. Proj.) .................................... 1.350 01/01/04 $ 325,000
1,700,000 Ashtabula Co., OH, Hosp. Fac. Rev.
(Ashtabula Co. Med. Ctr. Proj.) ................................. 1.280 01/01/04 1,700,000
4,000,000 Athens Co., OH, Port. Auth. Hsg. Rev.
(Univ. Hsg. for Ohio, Inc. Proj.) ............................... 1.320 01/01/04 4,000,000
1,885,000 Butler Co., OH, Hosp. Fac. Rev. (Berkley Square
Retirement Ctr. Proj.) .......................................... 1.250 01/01/04 1,885,000
2,800,000 Cambridge, OH, Hosp. Fac. Rev. (Southwestern Ohio Reg. Med.) .... 1.350 01/01/04 2,800,000
1,095,000 Carroll Co., OH, Health Care Fac. Rev. (St. Johns Villa Proj.) .. 1.350 01/01/04 1,095,000
6,600,000 Columbus, OH, GO ................................................ 1.150 01/01/04 6,600,000
300,000 Columbus, OH, Swr. Rev .......................................... 1.250 01/01/04 300,000
135,000 Coshocton Co., OH, Hosp. Fac. Rev. (Echoing Hills
Village, Inc. Proj.) ............................................ 1.450 01/01/04 135,000
1,640,000 Cuyahoga Co., OH, Civic Fac. Rev. (West Side Ecumenical) ........ 1.350 01/01/04 1,640,000
600,000 Cuyahoga Co., OH, EDR (The Cleveland Orchestra Proj.) ........... 1.300 01/01/04 600,000
10,000,000 Cuyahoga Co., OH, Health Care Fac. Rev.
(Gardens of McGregor) ........................................... 1.300 01/01/04 10,000,000
2,870,000 Cuyahoga Co., OH, IDR (S&R Playhouse Realty) .................... 1.100 01/01/04 2,870,000
3,240,000 Delaware Co., OH, Health Care Fac. Rev. (Sarah Moore Home) ...... 1.380 01/01/04 3,240,000
1,670,000 Franklin Co., OH, EDR (Columbus Montessori Ed. Ctr.) ............ 1.330 01/01/04 1,670,000
2,245,000 Franklin Co., OH, EDR (Dominican Sisters) ....................... 1.350 01/01/04 2,245,000
1,810,000 Franklin Co., OH, Health Care Fac. Rev. (Heinzerling Fndtn.) .... 1.450 01/01/04 1,810,000
960,000 Franklin Co., OH, Health Care Fac. Rev.
(Lifeline Organ Procurement) .................................... 1.350 01/01/04 960,000
825,000 Franklin Co., OH, Hosp. Rev. (US Health Corp.) .................. 1.180 01/01/04 825,000
965,000 Franklin Co., OH, IDR (Ohio Girl Scouts) ........................ 1.450 01/01/04 965,000
1,800,000 Fulton, OH, IDR (Polycraft, Inc.) ............................... 1.590 01/01/04 1,800,000
1,700,000 Geauga Co., OH, Health Care Fac. Rev. (Heather Hill Proj.) ...... 1.330 01/01/04 1,700,000
300,000 Hamilton Co., OH, EDR ........................................... 1.220 01/01/04 300,000
1,178,900 Hamilton Co., OH, EDR (Cincinnati Assoc. for the
Performing Arts) ................................................ 1.250 01/01/04 1,178,900
1,735,000 Hamilton Co., OH, EDR (Union Inst. Proj.) ....................... 1.300 01/01/04 1,735,000
2,865,000 Hamilton Co., OH, Health Care Fac. Rev. (Episcopal Proj.) ....... 1.220 01/01/04 2,865,000
4,000,000 Hamilton Co., OH, Hosp. Fac Rev. (Episcopal Retirement
Proj.) Ser. B ................................................... 1.220 01/01/04 4,000,000
1,350,000 Hamilton Co., OH, Hosp. Fac. Rev. (Beechwood Home Proj.) ........ 1.250 01/01/04 1,350,000
600,000 Hamilton Co., OH, Hosp. Fac. Rev. (Children's Hosp. Med. Ctr.) .. 1.220 01/01/04 600,000
1,000,000 Hamilton Co., OH, Hosp. Fac. Rev. (Childrens Hosp. Med. Ctr.) ... 1.220 01/01/04 1,000,000
6,200,000 Hamilton Co., OH, Hosp. Fac. Rev. (Drake Ctr., Inc.) ............ 1.220 01/01/04 6,200,000
43
OHIO TAX-FREE MONEY MARKET FUND
(CONTINUED)
=====================================================================================================================
PRINCIPAL FLOATING & VARIABLE DEMAND NOTES - 77.1% COUPON MATURITY MARKET
AMOUNT (CONTINUED) RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$4,700,000 Hamilton Co., OH, Hosp. Fac. Rev. (Episcopal
Retirement Proj.) Ser. A ........................................ 1.220 01/01/04 $ 4,700,000
5,920,000 Hamilton Co., OH, Sales Tax Floater Ctfs., Ser. 356 ............. 1.290 01/01/04 5,920,000
15,405,000 Hamilton, OH, Elec. Rev ......................................... 1.200 01/01/04 15,405,000
2,944,000 Hamilton, OH, MFH Rev. (Knollwood Village Apts.) Ser. A ......... 1.280 01/01/04 2,944,000
1,963,000 Hamilton, OH, MFH Rev. (Knollwood Village Apts.) Ser. B ......... 1.280 01/01/04 1,963,000
2,623,000 Hancock Co., OH, MFM Rev. (Crystal Glen Apts. Proj. Phase II) ... 1.280 01/01/04 2,623,000
4,805,000 Lima, OH, Hosp. Fac. & Impt. Rev. (Lima Mem. Hosp.) ............. 1.350 01/01/04 4,805,000
165,000 Lucas Co., OH, IDR (Assoc. Proj.) ............................... 1.550 01/01/04 165,000
125,000 Lucas Co., OH, Rev. (Sunshine Children's Home) .................. 1.350 01/01/04 125,000
770,000 Mahoning Co., OH, Health Care Fac. Rev. (Ohio Heart Institute) .. 1.450 01/01/04 770,000
5,000,000 Mahoning Co., OH, Hosp. Fac. (Forum Health Oblig.) .............. 1.300 01/01/04 5,000,000
2,510,000 Marion Co., OH, Hosp. Impt. Rev. (Pooled Lease Proj.) ........... 1.280 01/01/04 2,510,000
1,150,000 Mason, OH, Tax Increment Fin. Rev. (Central Park Proj.) ......... 1.300 01/01/04 1,150,000
1,900,000 Middleburg Heights, OH, Hosp. Rev. (Southwest Gen. Health) ...... 1.320 01/01/04 1,900,000
700,000 Montgomery Co., OH, (Miami Valley Hosp.) ........................ 1.300 01/01/04 700,000
1,235,000 Montgomery Co., OH, Health Care Rev. (Comm. Blood Ctr. Proj.) ... 1.450 01/01/04 1,235,000
2,900,000 Montgomery Co., OH, Ltd. Oblig. Rev. (St.Vincent de Paul Proj.) . 1.320 01/01/04 2,900,000
9,100,000 Ohio St. Air Quality (Ohio Edison) .............................. 1.300 01/01/04 9,100,000
600,000 Ohio St. Air Quality Dev. Auth. PCR ............................. 1.300 01/01/04 600,000
1,900,000 Ohio St. Higher Ed. Fac. Comm. Rev .............................. 1.300 01/01/04 1,900,000
1,575,000 Ohio St. Higher Ed. Fac. Rev. (Case Western Reserve Univ.) ...... 1.300 01/01/04 1,575,000
200,000 Ohio St. Higher Ed. Fac. Rev. (Malone College) .................. 1.350 01/01/04 200,000
3,500,000 Ohio St. Higher Ed. Fac. Rev. (Pooled Fin.) ..................... 1.400 01/01/04 3,500,000
500,000 Ohio St. Higher Ed. Fac. Rev. (Pooled Fin.) ..................... 1.400 01/01/04 500,000
3,600,000 Ohio St. Higher Ed. Fac. Rev. (Pooled Fin.) ..................... 1.400 01/01/04 3,600,000
4,620,000 Ohio St. Turnpike Rev ........................................... 1.290 01/01/04 4,620,000
1,545,000 Ottawa Co., OH, Hosp. Fac. Rev. (Lutheran Home of Mercy Proj.) .. 1.350 01/01/04 1,545,000
5,200,000 Puerto Rico Childrens Trust Fund ................................ 1.280 01/01/04 5,200,000
10,100,000 Puerto Rico Commonwealth Hwy. & Trans. Auth ..................... 1.230 01/01/04 10,100,000
400,000 Rickenbacker, OH, Port. Auth. Rev. (Rickenbacker
Holdings, Inc.) ................................................. 1.450 01/01/04 400,000
1,100,000 Seneca Co., OH, Hosp. Fac. Rev. (St. Francis Home, Inc. Proj.) .. 1.320 01/01/04 1,100,000
4,690,000 Sharonville, OH, IDR (Duke Realty Proj.) ........................ 1.400 01/01/04 4,690,000
1,550,000 Summit Co., OH, Health Care Fac. Rev. (Evant, Inc. Proj.) ....... 1.350 01/01/04 1,550,000
260,000 Summit Co., OH, IDR (Go-Jo Ind., Inc. Proj.) .................... 1.450 01/01/04 260,000
5,000,000 Summit Co., OH, Port. Auth. Rev. (Summa Health Sys.
Hosp. Proj.) .................................................... 1.320 01/01/04 5,000,000
11,950,000 Trumbull Co., OH, Health Care (Shepard of Valley Lutheran Home) . 1.350 01/01/04 11,950,000
3,995,000 Univ. of Akron, OH, General Receipts ............................ 1.050 01/01/04 3,995,000
1,600,000 Warren Co., OH, IDR (Liquid Container Proj.) .................... 1.300 01/01/04 1,600,000
1,540,000 Westlake, OH, EDR (Oaks Dev. Co. Proj.) ......................... 1.350 01/01/04 1,540,000
4,800,000 Woodlawn, OH, EDR (Goodwill Ind. Proj.) ......................... 1.250 01/01/04 4,800,000
265,000 Hamilton, OH, Elec. Rev ......................................... 1.200 01/02/04 265,000
2,155,000 Miami Co., OH, Hosp. Fac. Rev. (Upper Valley Med. Ctr.) ......... 1.300 01/02/04 2,155,000
2,400,000 ABN AMRO Munitops Trust Ctfs. (Westerville, OH CSD GO) .......... 1.180 01/07/04 2,400,000
860,000 Centerville, OH, Health Care Rev. (Bethany Lutheran
Village. Proj.) ................................................. 1.220 01/07/04 860,000
3,000,000 Cincinnati, OH, Port Auth. Rev. (Cincinnati Zoo Proj.) .......... 1.210 01/07/04 3,000,000
44
OHIO TAX-FREE MONEY MARKET FUND
(CONTINUED)
=====================================================================================================================
PRINCIPAL FLOATING & VARIABLE DEMAND NOTES - 77.1% COUPON MATURITY MARKET
AMOUNT (CONTINUED) RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$3,000,000 Cleveland, OH, Arpt. Sys. Rev ................................... 1.170 01/07/04 $ 3,000,000
10,000,000 Cleveland-Cuyahoga Co., OH, Port Auth. Rev ...................... 1.150 01/07/04 10,000,000
1,875,000 Cuyahoga Co., OH, Ed. Fac. Rev. (United Cerebral Palsy Assoc.) .. 1.250 01/07/04 1,875,000
400,000 Delaware Co., OH, IDR (MRG Ltd. Proj.) .......................... 1.750 01/07/04 400,000
1,270,000 Erie Co., OH, IDR (Toft Dairy, Inc.) ............................ 1.250 01/07/04 1,270,000
500,000 Greene Co., OH, Health Care Fac. Rev. (Green Oaks Proj.) ........ 1.250 01/07/04 500,000
480,000 Hamilton Co., OH, EDR (Gen. Protestant Orphan Home) ............. 1.280 01/07/04 480,000
840,000 Hamilton Co., OH, Health Care Fac. Rev ..........................
(Aloysius Orphanage Proj.) ...................................... 1.250 01/07/04 840,000
3,150,000 Hamilton Co., OH, Hosp. Fac. Rev. (Health Alliance) Ser. A ...... 1.070 01/07/04 3,150,000
1,300,000 Hamilton Co., OH, Hosp. Fac. Rev. (Health Alliance) Ser. B ...... 1.120 01/07/04 1,300,000
1,850,000 Hamilton Co., OH, Hosp. Fac. Rev. (Health Alliance) Ser. E ...... 1.070 01/07/04 1,850,000
400,000 Hamilton Co., OH, Hosp. Fac. Rev. (Health Alliance) Ser. F ...... 1.120 01/07/04 400,000
4,000,000 Lake Co., OH, Hosp. Fac. Rev. (Lake Hosp. Sys., Inc.) ........... 1.220 01/07/04 4,000,000
1,725,000 Lorain Co., OH, IDR (EMH Med. Ctr. Proj.) ....................... 1.250 01/07/04 1,725,000
400,000 Meigs Co., OH, IDR (MRG Ltd. Proj.) ............................. 1.750 01/07/04 400,000
2,450,000 Middletown, OH, Dev. Rev. (Bishop Fenwick High Sch. Proj.) ...... 1.200 01/07/04 2,450,000
1,070,000 Monroe, OH, IDR (Magnode Corp.) ................................. 1.600 01/07/04 1,070,000
2,000,000 Montgomery Co., OH, EDR (Dayton Art Institute) .................. 1.200 01/07/04 2,000,000
9,500,000 Ohio St. GO (Infrastructure Impt.) .............................. 1.120 01/07/04 9,500,000
1,200,000 Ohio St. Infrastructure Impt. UT GO ............................. 1.100 01/07/04 1,200,000
9,215,000 Ohio St. Univ. General Receipts ................................. 1.070 01/07/04 9,215,000
6,550,000 Ohio St. Univ. General Receipts ................................. 1.150 01/07/04 6,550,000
1,000,000 Ohio St. Wtr. Dev. Auth. PCR (Cleveland Elec.) .................. 1.150 01/07/04 1,000,000
1,300,000 Ohio St. Wtr. Dev. Auth. Rev .................................... 1.100 01/07/04 1,300,000
2,050,000 Ohio St. Wtr. Dev. Auth. Rev. (Timken Co.) ...................... 1.150 01/07/04 2,050,000
400,000 Orrville, OH, Hosp. Fac. Rev. (Orrville Hosp.) .................. 1.220 01/07/04 400,000
3,800,000 Puerto Rico Elec. Pwr. Auth. Rev. Muni. Secs. Trust Receipts .... 1.120 01/07/04 3,800,000
14,910,000 Puerto Rico Elec. Pwr. Auth. Rev. Muni. Secs. Trust Receipts .... 1.120 01/07/04 14,910,000
3,525,000 Scioto Co., OH, Hosp. Rev. (VHA Cent, Inc.) Ser. B .............. 1.100 01/07/04 3,525,000
3,625,000 Scioto Co., OH, Hosp. Rev. (VHA Cent, Inc.) Ser. F .............. 1.100 01/07/04 3,625,000
2,315,000 Scioto Co., OH, Hosp. Rev. (VHA Cent., Inc.) Ser. E ............. 1.100 01/07/04 2,315,000
7,075,000 Scioto Co., OH, Hosp. Rev. (VHA Cent., Inc.) Ser. G ............. 1.100 01/07/04 7,075,000
2,500,000 Summit, OH, Civic Fac. Rev. (YMCA Proj.), Ser. 1997 ............. 1.250 01/07/04 2,500,000
400,000 Wyandot Co., OH, IDR (MRG Ltd. Proj.), Ser. 1985 ................ 1.750 01/07/04 400,000
2,500,000 Hamilton Co., OH, IDR (ADP System) .............................. 1.160 01/15/04 2,500,000
------------
TOTAL FLOATING & VARIABLE DEMAND NOTES .......................... $319,788,900
------------
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL COUPON MATURITY MARKET
AMOUNT ADJUSTABLE RATE PUT BONDS - 3.7% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$3,740,000 Cuyahoga Co., OH, IDR (Halle Office Bldg.) ...................... 1.100 04/01/04 $ 3,740,000
1,090,000 Clermont Co., OH, EDR (John Q. Hammons Proj.) ................... 1.400 05/01/04 1,090,000
2,435,000 Ohio St. HFA MFH (Lincoln Park) ................................. 1.750 05/01/04 2,435,000
2,760,000 Richland Co., OH, IDR (Mansfield Sq. Proj.) ..................... 1.400 05/15/04 2,760,000
810,000 Scioto Co., OH, Health Care Rev. (Hillview Retirement) .......... 1.300 06/01/04 809,934
3,000,000 ABN AMRO Munitops Trust Ctfs. 1998-I8 (Cleveland Wtr. Wrks.) .... 1.250 06/10/04 3,000,000
640,000 Gallia Co., OH, IDR (Jackson Pike Assoc.) ....................... 1.300 06/15/04 640,000
845,000 Clermont Co., OH, EDR (Eastgate Partnership) .................... 1.850 09/01/04 845,000
------------
TOTAL ADJUSTABLE RATE PUT BONDS ................................. $ 15,319,934
------------
45
OHIO TAX-FREE MONEY MARKET FUND
(CONTINUED)
=====================================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT COMMERCIAL PAPER - 0.5% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$2,000,000 Ohio St. Higher Ed. (Case Western Reserve Univ.) ................ 0.900 01/05/04 $ 2,000,000
------------
TOTAL INVESTMENT SECURITIES - 99.9%
(Amortized Cost $414,227,209) ................................... $414,227,209
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% .................... 405,405
------------
NET ASSETS - 100.0% ............................................. $414,632,614
============
See accompanying notes to portfolio of investments and notes to financial statements.
46
TAX-FREE INTERMEDIATE TERM FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003 (UNAUDITED)
=====================================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT MUNICIPAL OBLIGATIONS - 97.8% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.3%
$ 450,000 Houston Co., AL, UT GO Warrants ................................. 5.350 10/15/11 $ 509,220
------------
ARKANSAS - 2.1%
775,000 Little Rock, AR, Healthcare Rev. (Baptist Health) ............... 5.000 09/01/14 820,299
------------
CALIFORNIA - 0.8%
300,000 California St. Dept. Wtr. Res. Pwr. Supply Rev .................. 1.270 01/01/04 300,000
------------
COLORADO - 2.8%
1,065,000 Superior Metro. Dist. No. 1 CO, Wtr. & Swr. ARPB
Mandatory Put ................................................... 5.500 12/01/20 1,096,098
------------
DISTRICT OF COLUMBIA - 0.3%
100,000 Washington, DC, Convention Ctr. Auth. Dedicated Tax Rev ......... 5.250 10/01/12 110,859
------------
FLORIDA - 9.1%
805,000 Florida HFA MFH Sr. Lien, Ser. I-1 .............................. 6.100 01/01/09 794,471
1,000,000 Greater Orlando Aviation Auth. Orlando, FL, Arpt. Facs. Rev ..... 5.250 10/01/09 1,112,389
1,000,000 Pasco Co., FL, HFA MFH Rev. (Oak Trail Apts.) ................... 5.500 06/01/08 1,056,040
455,000 Pensacola, FL, Arpt. Rev. ....................................... 5.400 10/01/07 492,688
------------
3,455,588
------------
ILLINOIS - 1.6%
500,000 Chicago, IL, Met. Wtr. Reclamation Dist. Escrowed to Maturity ... 7.000 01/01/11 611,845
------------
INDIANA - 1.3%
500,000 Indiana HFA Multi-Unit Mtg. Prog. Rev ........................... 6.600 01/01/12 506,220
------------
KANSAS - 3.1%
1,055,000 Sedgwick Co., KS, USD UT GO ..................................... 5.000 11/01/10 1,188,479
------------
KENTUCKY - 1.2%
435,000 Madisonville, KY, Wtr. & Swr. Rev ............................... 4.250 09/01/15 451,734
------------
MASSACHUSETTS - 0.9%
345,000 Massachusetts St. Indl. Fin. Agy. Rev. (Hudner Assoc.) .......... 5.000 01/01/08 360,039
------------
MISSISSIPPI - 2.6%
250,000 Misissippi St. Capt. Impt. GO Prerefunded @ 100 ................. 5.000 11/01/14 279,853
335,000 Mississippi Business Fin. Corp. IDR (Bomaine Corp.) ............. 5.200 05/01/11 344,869
365,000 Mississippi Business Fin. Corp. IDR (Bomaine Corp.) ............. 5.300 05/01/12 373,026
------------
997,748
------------
NEVADA - 3.2%
700,000 Clark Co., NV, Impt. Dist ....................................... 1.190 01/01/04 700,000
480,000 Las Vegas, NV, Spl. Impt. Dist. SR Local Impt. .................. 5.250 06/01/12 527,798
------------
1,227,798
------------
47
TAX-FREE INTERMEDIATE TERM FUND
(CONTINUED)
=====================================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT MUNICIPAL OBLIGATIONS - 97.8% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
OHIO - 51.3%
$ 275,000 Akron, OH, GO ................................................... 6.000 11/01/11 $ 323,496
1,000,000 Bowling Green St. Univ., OH, General Receipts ................... 5.750 06/01/12 1,147,650
465,000 Cincinnati, OH, Police & Fireman's Disability GO ................ 5.750 12/01/16 531,128
680,000 Clermont Co., OH, GO ............................................ 4.000 12/01/12 706,520
325,000 Columbus, OH, GO ................................................ 4.750 06/15/10 353,100
374,530 Columbus, OH, Special Assessment GO ............................. 5.050 04/15/08 411,863
1,000,000 Cuyahoga Co., OH, Mtg. Rev. (West Tech. Apts. Proj.) ............ 5.100 09/20/10 1,070,890
415,000 Dublin, OH, Var. Purp. Impt. GO ................................. 6.000 12/01/15 484,529
500,000 Erie Co., OH, Hosp. Facs. Rev. (Fireland Reg. Med. Ctr.) ........ 6.000 08/15/13 558,770
1,005,000 Franklin Co., OH, Healthcare Rev. (First Comm. Village) ......... 6.000 06/01/06 1,030,085
1,075,000 Franklin Co., OH, Hosp. Rev. Impt. (Childrens Hosp. Proj.) ...... 5.500 05/01/12 1,232,551
1,000,000 Franklin Co., OH, Rev. (Online Computer Library Ctr.) ........... 4.650 10/01/11 1,062,410
1,000,000 Hamilton Co., OH, Swr. Sys. Rev ................................. 5.500 12/01/11 1,163,350
590,000 Hubbard, OH, EVSD ............................................... 5.400 12/01/10 673,249
1,000,000 Indian Hill, OH, EVSD GO ........................................ 5.250 12/01/14 1,119,050
1,000,000 Lorain Co., OH, Hosp. Rev. (Catholic Health) .................... 5.625 10/01/11 1,121,460
480,000 Midview, OH, LSD COP ............................................ 4.250 11/01/09 510,946
45,000 Ohio St. EDR Ohio Enterprise Bond Fd. (Cheryl & Co.) ............ 5.500 12/01/04 46,092
500,000 Ohio St. IDR (Bomaine Corp. Proj.) .............................. 5.500 11/01/07 506,030
275,000 Ohio St. Pub. Facs. Comm. Mental Health ......................... 5.200 06/01/12 303,064
540,000 Ohio St. Revitalization Proj .................................... 5.000 10/01/08 602,656
1,000,000 Ohio St. Univ. General Receipts Rev ............................. 5.125 12/01/11 1,114,780
1,035,000 Reading, OH, Rev. (St. Mary's Ed. Institute) .................... 5.550 02/01/10 1,164,861
515,000 South-Western CSD, OH, (Franklin & Pickway Co.) ................. 5.000 12/01/12 580,317
530,000 Toledo, OH, GO .................................................. 6.000 12/01/06 592,964
660,000 West Chester Twp., OH, GO ....................................... 5.500 12/01/14 750,856
500,000 West Clermont, OH, LSD GO Partially Prerefunded @ 100 ........... 6.150 12/01/08 542,655
------------
19,705,322
------------
PENNSYLVANIA - 3.4%
250,000 Lehigh Co., PA, IDA PCR (PPL Elec. Utils.) ...................... 3.125 11/01/08 255,120
1,000,000 Pennsylvania St. Higher Ed. Facs. (St. Josephs College) ......... 5.000 05/01/11 1,063,410
------------
1,318,530
------------
SOUTH CAROLINA - 4.7%
1,000,000 Richland Co., SC, (Intl. Paper Co.), Ser. A ..................... 4.250 10/01/07 1,053,250
725,000 Richland-Lexington, SC, Arpt. Dist. Rev. (Columbia Metro.) ...... 6.000 01/01/08 755,784
------------
1,809,034
------------
TENNESEE - 2.5%
835,000 Shelby Co., TN, Sports Auth. (Memphis Arena Proj.), Ser. A ...... 5.500 11/01/13 956,609
TEXAS - 5.6%
500,000 Austin, TX, Hotel Occupancy Tax, Rev. Ref-Sub Lien .............. 5.750 11/15/12 571,740
250,000 Dallas, TX, Twy. Auth. Sys. Rev ................................. 5.000 01/01/18 275,940
585,000 Denton Co., TX, Permanent Impt. GO .............................. 5.000 07/15/12 640,605
77,048 Midland, TX, HFC Rev. Ser. A-2 .................................. 8.450 12/01/11 81,426
515,000 Robinson, TX, ISD GO ............................................ 5.750 08/15/10 588,382
10,000 San Antonio, TX, Elec. & Gas Rev. Escrowed to Maturity .......... 5.000 02/01/12 11,217
------------
2,169,310
------------
TOTAL MUNICIPAL OBLIGATIONS ..................................... $ 37,594,732
------------
48
TAX-FREE INTERMEDIATE TERM FUND
(CONTINUED)
=====================================================================================================================
PRINCIPAL MARKET
AMOUNT CASH EQUIVALENTS - 0.2% VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 89,000 Merrill Lynch Institutional Tax-Exempt Fund ..................... $ 89,000
------------
TOTAL INVESTMENT SECURITIES - 98.0%
(Amortized Cost $35,658,140) .................................... $ 37,683,732
OTHER ASSETS IN EXCESS OF LIABILITIES - 2.0% .................... 785,670
------------
NET ASSETS - 100.0% ............................................. $ 38,469,402
============
See accompanying notes to portfolio of investments and notes to financial
statements.
49
TAX-FREE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003 (UNAUDITED)
=====================================================================================================================
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FIXED RATE REVENUE & GENERAL OBLIGATION BONDS - 34.4% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 140,000 Salt River, AZ, Agric. Impt. & Pwr. Dist. Elec. Sys. Rev.,
Prerefunded @ 102 ............................................... 5.000 01/01/04 $ 142,800
738,550 American Muni. Pwr. OH, Inc. BANS (Milan Village) ............... 1.400 01/15/04 738,550
250,000 Deerfield Twp., OH, TANS ........................................ 2.100 01/28/04 250,092
130,000 Oklahoma City, OK, Arpt. Trust .................................. 4.800 02/01/04 130,387
675,000 American Muni. Pwr. OH, Inc. BANS (Lakeview Village) ............ 1.400 02/05/04 675,000
300,000 Berkeley Co., WV, Pub. Svc. Dist. Wtr. Rev ...................... 2.000 03/01/04 300,319
500,000 Tennessee St. UT GO Prerefunded @ 101.5 ......................... 5.650 03/01/04 511,086
390,000 Avon Lake, OH, Wtr. Sys. Impt. BANS ............................. 1.600 04/01/04 390,068
300,000 Portsmouth, OH, Wtr. Sys. Rev ................................... 1.600 04/01/04 300,000
200,000 Bloomville, OH, BANS ............................................ 2.160 05/06/04 200,449
735,000 Monroe, OH, BANS ................................................ 1.800 05/06/04 736,002
120,000 Lebanon, OH, BANS (Fire Dept. Impt.) ............................ 1.650 05/20/04 120,159
100,000 Kentucky St. Higher Ed. Student Ln. Corp. Insd. Student Ln. Rev . 5.200 06/01/04 101,377
500,000 Spencerville, OH, BANS (Wtr. Sys. Impt.) ........................ 1.950 06/02/04 500,630
1,500,000 Leipsic, OH LSD BANS ............................................ 2.150 06/15/04 1,504,386
525,000 American Muni. Pwr. OH, Inc. BANS (Grafton Village) ............. 1.250 06/17/04 525,000
875,000 Blanchester, OH, Wtr. Sys. Impt. BANS ........................... 1.950 07/08/04 875,088
1,000,000 Perkins Twp., OH, BANS .......................................... 2.000 07/28/04 1,000,000
100,000 Agawam, MA, GO .................................................. 4.500 09/01/04 102,174
240,000 Pataskala, OH, Bridge Impt. BANS ................................ 1.830 09/23/04 240,568
400,000 Bell Cmnty., CA, Tax Allocation Redev. Agy ...................... 2.000 10/01/04 401,478
100,000 Mississippi St. Brd. of Trustees of Instns. of Higher Learning .. 2.125 10/01/04 100,649
300,000 North Randall, OH, Temp. Bonds (Emery Rd.) ...................... 1.700 10/15/04 300,699
500,000 American Muni. Pwr. OH, Inc. BANS (Galion Proj.) ................ 1.400 11/12/04 500,000
560,000 Goshen, IN, Cmnty. Schs. Land Acquisition ....................... 2.300 01/01/05 563,029
------------
TOTAL FIXED RATE REVENUE & GENERAL OBLIGATION BONDS ............. $ 11,209,990
------------
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE DEMAND NOTES - 51.0% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 555,000 Arvada, CO, Wtr. Util. Rev ...................................... 1.150 01/01/04 $ 555,000
460,000 Boone Co., KY, Indl. Bldg. Rev. (The Hennegan Co. Proj.) ........ 1.300 01/01/04 460,000
240,000 Boulder Co., CO, Dev. Rev. (Humane Society Inc.) ................ 1.400 01/01/04 240,000
100,000 California Statewide Cmntys. IDR (Amern Modular Sys. Proj.) ..... 1.350 01/01/04 100,000
100,000 Catawba Co., NC, Indl. Facs. (Lucky 7 Dev. Group) ............... 1.450 01/01/04 100,000
100,000 Charlotte, NC, COPS (Convention Fac. Proj.) ..................... 1.300 01/01/04 100,000
545,000 Eden Prairie, MN, MFH Rev. (Lake Place Apts.) ................... 1.400 01/01/04 545,000
480,000 Eupora, MS, IDR (Plymouth Tube Co. Proj.) ....................... 1.650 01/01/04 480,000
315,000 Fargo, ND, Coml. Dev. Rev. Ref. (Kelly Inns. Fargo Proj.) ....... 1.450 01/01/04 315,000
325,000 Greenwood, IN, EDR (Health Quest Realty) ........................ 1.530 01/01/04 325,000
130,000 Henderson, NV, Pub. Impt. MFH Rev. (Pueblo I), Ser. A ........... 1.200 01/01/04 130,000
355,000 Illinois Dev. Auth. IDR (Hoda LLC) .............................. 1.550 01/01/04 355,000
235,000 Indiana St. EDR (Earlham College) ............................... 1.450 01/01/04 235,000
894,000 Indianapolis, IN, EDR (Pedcore Invts. Waterfront) ............... 1.590 01/01/04 894,000
100,000 Irvine, CA, Impt. Brd. Act 1915 ................................. 1.270 01/01/04 100,000
220,000 Jefferson Co., MO, IDA IDR (GHF Holdings LLC Proj.) ............. 1.550 01/01/04 220,000
280,000 Lake Co., IL, Cmnty. Cons. Sch. Dist. No. 073 Hawthorn .......... 1.340 01/01/04 280,000
50
TAX-FREE MONEY MARKET FUND
(CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL COUPON MATURITY MARKET
AMOUNT FLOATING & VARIABLE DEMAND NOTES - 51.0% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 450,000 Lancaster Co., NE, IDR (Garner Ind.) ............................ 1.310 01/01/04 $ 450,000
1,060,000 Mankato, MN, IDR, Ser. 1998 (Sacco Family LP Proj.) ............. 1.600 01/01/04 1,060,000
110,000 Mississippi Bus. Fin. Corp. (Arch Aluminum & Glass) ............. 1.500 01/01/04 110,000
500,000 Municipal Secs. Trust Ctfs., Ser. 2001-160 (Florida Brd. of Ed.) 1.380 01/01/04 500,000
300,000 Municipal Secs. Trust Ctfs., Ser. 2001-161 (Florida Brd. of Ed.) 1.380 01/01/04 300,000
275,000 Port Kalama, WA, Pub. Corp. Port. (Conagra, Inc. Proj.) ......... 1.400 01/01/04 275,000
117,000 Portage, IN, EDR ................................................ 1.410 01/01/04 117,000
400,000 Putnam Co., FL, PCR Dev. Auth. (Florida Pwr. & Light Co. Proj.) . 1.330 01/01/04 400,000
1,105,000 Salina, KS, Rev. (Salina Center Mall Ltd.) ...................... 1.450 01/01/04 1,105,000
500,000 Seminole Co., FL, IDA Health Fac ................................
(Florida Living Nursing Center) ................................. 1.430 01/01/04 500,000
705,000 St. Louis, MO, Clearance Redev. Auth. (Lamment Bldg.) ........... 1.400 01/01/04 705,000
300,000 Tarrant Co., TX, Health Fac. Dev. Corp. Rev .....................
(Cumberland Rest Proj.) ......................................... 1.320 01/01/04 300,000
1,300,000 Univ. Athletic Assn., FL CAP Impt. Rev., (Univ. of Florida
Stadium Proj.) .................................................. 1.350 01/01/04 1,300,000
1,000,000 Cincinnati, OH, Port Auth. Rev. (Cincinnati Zoo Proj.) .......... 1.210 01/07/04 1,000,000
100,000 East Carolina Univ. Rev. (Ficklen Stadium Proj.) ................ 1.280 01/07/04 100,000
500,000 Flowood, MS, MFM ................................................ 1.120 01/07/04 500,000
100,000 Knox, IN, EDR (J.W. Hicks, Inc. Proj.) .......................... 1.400 01/07/04 100,000
1,200,000 Marion Co., FL, HFA Rev. (Paddock Apts.) ........................ 1.100 01/07/04 1,200,000
100,000 Northeastern PA, Hosp. & Edl. Auth. (Wyoming Vy. Healthcare) .... 1.200 01/07/04 100,000
1,100,000 Scio Twp., MI, EDR (ADP Network) ................................ 1.580 01/07/04 1,100,000
------------
TOTAL FLOATING & VARIABLE DEMAND NOTES .......................... $ 16,656,000
------------
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL COUPON MATURITY MARKET
AMOUNT ADJUSTABLE RATE PUT BONDS - 14.2% RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------
$ 490,000 Lexington-Fayette Co., KY, Urban Govt. Rev ......................
(Providence Montessori) ......................................... 2.250 01/01/04 $ 490,000
970,000 Pulaski Co., KY, Solid Wst. Disp. Rev. (East Kentucky Pwr.) ..... 1.100 02/15/04 970,000
480,000 Sabine River, TX, IDA (Northeast TX Elec. Corp.) ................ 1.050 02/15/04 480,000
570,000 Summit Co., OH, IDR (S.D. Myers, Inc. Proj.) .................... 1.800 02/15/04 570,000
100,000 Portage Co., OH, IDR (Neidlinger Proj.) ......................... 1.950 03/01/04 100,000
95,000 Summit Co., OH, IDR (Keltec, Inc. Proj.) ........................ 1.950 03/01/04 95,000
440,000 Summit Co., OH, IDR (Struktol Co. America Proj.) ................ 1.950 03/01/04 440,000
115,000 Cuyahoga Co., OH, IDR (Halle Office Bldg.) ...................... 1.100 04/01/04 115,000
360,000 Newport, KY, Indl. Bldg. Rev. (Sumerel Tire Svc., Inc. Proj.) ... 2.500 06/01/04 360,000
1,000,000 Westmoreland Co., PA, IDR (White Consolidated Industries) ....... 1.320 06/01/04 1,000,000
------------
TOTAL ADJUSTABLE RATE PUT BONDS ................................. $ 4,620,000
------------
TOTAL INVESTMENT SECURITIES - 99.6%
(Amortized Cost $32,485,990) .................................... $ 32,485,990
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.4% .................... 120,987
------------
NET ASSETS - 100.0% ............................................. $ 32,606,977
------------
See accompanying notes to portfolio of investments and notes to financial
statements.
51
NOTES TO PORTFOLIOS OF INVESTMENTS
DECEMBER 31, 2003
================================================================================
Variable and adjustable rate put bonds earn interest at a coupon rate which
fluctuates at specified intervals, usually daily, monthly or semi-annually. The
rates shown in the Portfolios of Investments are the coupon rates in effect at
December 31, 2003.
Put bonds may be redeemed at the discretion of the holder on specified dates
prior to maturity. Mandatory put bonds are automatically redeemed at a specified
put date unless action is taken by the holder to prevent redemption.
Bonds denoted as prerefunded are anticipated to be redeemed prior to their
scheduled maturity. The dates indicated in the Portfolios of Investments are the
stipulated prerefunded dates.
PORTFOLIO ABBREVIATIONS:
ARPB - Adjustable Rate Put Bond
BANS - Bond Anticipation Notes
COP - Certificates of Participation
CSD - City School District
EDR - Economic Development Revenue
EVSD - Exempted Village School District
GO - General Obligation
HFA - Housing Finance Authority/Agency
HFC - Housing Finance Corporation
IDA - Industrial Development Authority/Agency
IDC - Industrial Development Corporation
IDR - Industrial Development Revenue
ISD - Independent School District
LSD - Local School District
LT - Limited Tax
MFA - Multi-Family Authority
MFH - Multi-Family Housing
MFM - Multi-Family Mortgage
PCR - Pollution Control Revenue
TANS - Tax Anticipation Notes
USD - Unified School District
UT - Unlimited Tax
52
ITEM 2. CODE OF ETHICS.
Not required for Semiannual Reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not required for Semiannual Reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not required for Semiannual Reports
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
ITEM 6. RESERVED
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the 1940 Act) the
registrant's principal executive officer and principal financial
officer have concluded that the registrant's disclosures and
procedures are effective as of a date within 90 days of the filing
date of this report.
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the registrant's last fiscal half-year that have
materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
ITEM 10. EXHIBITS.
(a)(2) Certifications required by Item 10(a)(2) of Form N-CSR are filed
herewith.
(b) Certification required by Item 10(b) of Form N-CSR is filed herewith.
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.
(Registrant) Touchstone Tax-Free Trust
-------------------------------------------------------------------
By (Signature and Title)
/s/ Michael S. Spangler
- -------------------------------------------------------------------------------
Michael S. Spangler
President
Date: March 8, 2004
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.
By (Signature and Title)
/s/ Michael S. Spangler
- -------------------------------------------------------------------------------
Michael S. Spangler
President
Date: March 8, 2004
/s/ Terrie A. Wiedenheft
- -------------------------------------------------------------------------------
Terrie A. Wiedenheft
Controller & Treasurer
Date: March 8, 2004