NOTES TO FINANCIAL STATEMENTS . June 30, 1999 (Unaudited)
Heartland Group, Inc. (the "Corporation") is registered as an open-end management company under the
Investment Company Act of 1940. The Wisconsin Tax Free Fund (the "Fund"), which is a non-diversified Fund,
is one of the nine series of funds issued by the Corporation at June 30, 1999.
(2) Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Fund in preparation of the financial
(a) Debt securities are stated at fair value as furnished by independent pricing services based primarily upon
information concerning market transactions and dealer quotations for similar securities, or by dealers who make
markets in such securities. Debt securities having maturities of 60 days or less may be valued at acquisition cost,
plus or minus any amortized discount or premium. Securities for which quotations are not readily available are
valued at their fair value using methods determined by the Board of Directors.
(b) The Fund's policy is to comply with the requirements of the Internal Revenue Code which are applicable to
regulated investment companies and to distribute substantially all of its taxable income to its shareholders. The
Fund accordingly paid no Federal income taxes, and no Federal income tax provision is required.
At June 30, 1999, the Fund had Federal income tax capital loss carryforwards of $399,536 expiring in 2003 and
$333,310 expiring in 2005. The Fund does not intend to make a distribution of any future realized capital gains
until its Federal income tax capital loss carryforwards are completely utilized.
Statement of Position 93-2 requires that permanent financial reporting and tax differences be reclassified to paid
in capital. Net assets are not affected by these reclassifications.
Net realized gains or losses may differ for Federal income tax purposes primarily as a result of post-October
losses which may not be recognized fo