FEDERATED HIGH INCOME BOND FUND INC, N-30D, 2000-05-26

FEDERATED HIGH INCOME BOND FUND INC
N-30D, 2000-05-26
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<P>

<B>Federated Investors</B><BR>World-Class Investment Manager </P>
<P>

</P>
<P>

</P>
<P>

<B>Richard B. Fisher</B></P>
<P>

President</P>
<P>

Federated High Income Bond Fund, Inc.</P>
<H2>

President's Message</H2>
<P>

Dear Fellow Shareholder:</P>
<P>

Federated High Income Bond Fund, Inc. (the "fund") was created in 1977, and
I am pleased to present its 23rd Annual Report. This $2 billion fund is designed to
provide high monthly income from a broadly diversified portfolio of high-yield
corporate bonds.<SUP>1</SUP></P>
<P>

The fund has paid monthly dividends since the fund's inception, and income is
generated from over 275 corporate bond issues in over 15 industry sectors. In fact,
42% of the fund's net assets are in sectors which include telecommunications and
cellular devices, cable television, and broadcast companies which encompass radio as
well as television stations. These sectors provide the transmission of data for
business, as well as entertainment for listeners and users around the world.</P>
<P>

Shareholders, of course, are aware of NEXTEL Communications Inc., Level 3
Communications Inc. and Intermedia Communications Inc., to name just three. I mention
these holdings to show the selected issues are recognized, successful, ongoing
corporations. In fact, most of the fund's selections are successful. (Please review
the fund's holdings listed in this report.) However, all corporations can be
adversely affected in the rising interest rate environment, such as the United States
is experiencing now. Furthermore, the volatility of the stock market is reflected in
the fund's share performance.</P>
<P>

The fund's managers are reminded of the bond market environment of the early
1990s--it was not easy to be a manager of high-yield bonds in those times, nor is it
in today's market. However, it is not a new experience for our managers, and the
fund's broad diversification is our best protection.</P>
<P>

This report covers the 12-month reporting period from April 1, 1999 through March 31,
2000. It begins with an interview with the fund's portfolio manager, Mark E.
Durbiano, Senior Vice President of Federated Investment Management Company. Following
his discussion are three additional items of shareholder interest. First is a series
of graphs showing the fund's long-term investment performance. Second is a complete
listing of the fund's high-yielding corporate bond holdings, and third is the
publication of the fund's financial statements.</P>
<P>

1     Lower-rated bonds involve a higher degree of risk than investment grade bonds
in return for higher yield potential.</P>
<P>

As stated above, it is a difficult time for bond investors in general, as rising
interest rates have caused overall bond prices to decline. In addition, high-yield
bonds suffered from an increase in defaults. While the fund's default rate was
substantially less than that of its peers, the performance of individual holdings and
the fund's weighting in certain sectors caused the fund to underperform the average
high-yield bond fund over the 12-month reporting period.</P>
<P>

For the fiscal year ended March 31, 2000, the fund produced a strong level of income
that helped temper a decline in net asset value. Individual share class total return
performance, including income distributions, follows.<SUP>2</SUP></P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B>Total Return</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B>Income <BR>
Distributions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B>Net Asset Value Change</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Class A Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

(4.65%)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

$0.99</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

$11.30 to  $9.82 = (13%)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Class B Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

(5.37%)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

$0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

$11.29 to  $9.81 = (13%)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Class C Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

(5.46%)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

$0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

$11.30 to  $9.81 = (13%)</P>
</TD>
</TR>
</TABLE>
<P>

The current level of high-yield bond prices represent very attractive long-term value
compared to high-quality bonds, as investors are being well compensated with
significantly higher yields for assuming the credit risk involved in owning these
corporate bonds.</P>
<P>

While a decline in share price is of concern to both managers and shareholders, it is
the nature of the high-yield market to pursue high income returns with risk to
principal and income.</P>
<P>

As I have always recommended buying more shares when prices are down, I again believe
that now may be a buying opportunity. I recommend adding to your account as the
fund's income return is especially attractive.</P>
<P>

Thank you for investing a portion of your wealth in Federated High Income Bond Fund,
Inc. Your questions, comments, or suggestions about the fund are always welcome.</P>
<P>

Very sincerely yours,
<P>

 <B>Richard B. Fisher</B></P>
<P>

Richard B. Fisher<BR>
President<BR>
May 15, 2000</P>
<P>

2     Performance quoted is based on net asset value, reflects past performance and
is no guarantee of future results. Investment return and principal value will
fluctuate so an investor's shares, when redeemed, may be worth more or less than
their original cost. Total returns for the period, based on offering price (i.e.,
less any applicable sales charge), for Class A, B, and C Shares were (8.92%),
(10.15%), and (6.32%), respectively.</P>
<P>


<P>

</P>
<P>

<B>Mark E. Durbiano</B></P>
<P>

Senior Vice President</P>
<P>

Federated Investment Management Company</P>
<H2>

Investment Review</H2>
<H3>

What is your review of the fund's fiscal year in which the high-yield bond market
slightly underperformed the broad bond market?</H3>
<P>

High-yield bonds delivered disappointing absolute and relative returns for the 12
months ended March 31, 2000. For example, the high-yield bond market returned
(1.82%), as measured by the Lehman Brothers High Yield Bond Index, underperforming
the 1.87% return of the high-quality bond market, as measured by the Lehman Brothers
Aggregate Bond Index.<SUP>1</SUP></P>
<P>

Several factors negatively impacted the returns of the market. First, interest rates
in general rose negatively impacting all long-term, fixed-income assets. Second, the
high-yield market experienced above-average losses from credit deterioration. Default
rates increased to above 4%, their highest level since 1991. Also, many issuers that
did not default, but reported disappointing financial results, declined substantially
in price. Third, the high-yield market was negatively impacted by liquidations from
many high-yield mutual funds. This caused a substantial technical problem in the
marketplace as portfolio managers had to sell bond issues into a weak, declining
market in order to raise cash to meet redemption activity.</P>
<P>

1     Lehman Brothers High Yield Bond Index is an unmanaged index that covers the
universe of fixed-rate, publicly issued, non-investment grade debt securities. The
Lehman Brothers Aggregate Bond Index is an unmanaged index comprising securities from
Lehman Brothers Government/Corporate Bond Index, Mortgage-Backed Securities Index,
and the Asset-Backed Securities Index. Investments cannot be made in an index.</P>
<H3>

What sectors of the market had the most difficulty, and did any sectors substantially
outperform the overall market?</H3>
<P>

Several sectors substantially underperformed the overall corporate bond market. In
the capital goods area, aerospace issues (down 11.15%) and construction machinery
equipment (down 12.64%) were especially weak. The consumer sectors, both cyclicals
and noncyclicals, had pockets of weakness: movie theaters (down 21.31%), textiles
(down 20.08%), consumer products (down 9.63%), food (down 18.69%), and health care
(down 7.76%).</P>
<P>

On the plus side, several sectors turned in very strong relative performance for the
year. This includes the paper sector (up 5.73%) and the energy sector (up 8.90%).
Telecommunications, the largest sector, representing 23.25% of net assets, turned in
a respectable 0.98% total return.</P>
<H3>

The increase in default rates and credit deterioration was surprising given the
overall strong performance of the domestic economy. What caused the spike in default
activity?</H3>
<P>

There is historical precedent for peaks in the issuance of high-yield securities to
be followed by peaks in defaults. New issuance of high-yield securities peaked in
1998, and investors paid the price in 1999 for this flood of debt issuance. Simply
stated, when demand for high-yield bonds is great, market credit standards
deteriorate, and lower quality deals that will later default are sold in the market.
While this had been a painful process for investors, it should be noted that after
periods of high debt issuance then followed by high defaults, you typically get
periods of low issuance and lower rates of defaults. New issuance declined in 1999
from 1998's peak, and so far in 2000, issuance is down substantially from 1999. </P>
<H3>

How did the fund perform for the year?</H3>
<P>

For the 12-month reporting period ended March 31, 2000, the fund's Class A, B, and C
Shares produced total returns of (4.65%), (5.37%), and (5.46%),
respectively.<SUP>2</SUP> These returns were less than those of the Lehman Brothers
High Yield Bond Index return of (1.82%) and the Lipper High Current Yield Funds
Average return of 0.06%.<SUP>3</SUP></P>
<H3>

What impacted the fund's return over the reporting period?</H3>
<P>

Several factors negatively impacted the fund's total return relative to the Lehman
Brothers High Yield Index. First, the fund was overweighted in the B-rated quality
sector of the market, which underperformed both the BB- and CCC-rated sectors.
Second, the fund was underweighted in both the paper and the energy sectors, which
delivered strong total returns during the reporting period. Overall, the fund had a
much lower default rate than the market; however, several positions experienced
substantial price deterioration based on disappointing financial results. These
positions include: Ameriserve and Paging Network, which were sold during the year,
and <B>Revlon</B>, <B>Regal</B> <B>Cinemas</B>, <B>AEI</B> <B>Resources</B>,
<B>Clark</B> <B>Material Handling</B> and <B>U.S. Office Products</B>, which were
still held at the end of the fiscal year.</P>
<P>

2     Performance quoted is based on net asset value, reflects past performance and
is no guarantee of future results. Investment return and principal value will
fluctuate so an investor's shares, when redeemed, may be worth more or less than
their original cost. Total returns for the period, based on offering price (i.e.,
less any applicable sales charge), for Class A, B and C Shares were (8.92%),
(10.15%), and (6.32%), respectively.</P>
<P>

3      Lipper figures represent the average of the total returns reported by all
mutual funds designated by Lipper Analytical Services, Inc. as falling into the
category indicated. These figures do not reflect sales charges.</P>
<P>

On the positive side, the fund was overweighted in the telecommunications sector, and
held several positions that substantially outperformed the overall
market--<B>Alliance Imaging</B>, <B>American Cellular</B>, <B>Falcon</B>
<B>Building</B> <B>Products</B>, <B>Forcenergy</B>, <B>Metronet</B>
<B>Communications</B> and <B>UIH</B> <B>Australia</B> <B>Pacific</B>.</P>
<H3>

What were the fund's top holdings as of March 31, 2000?</H3>
<P>

The top ten holdings out of more than 287 total issues were as follows:</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Name/Coupon/Maturity</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Percentage of <BR>
Net Assets</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Level 3 Communications, Inc., Sr. Note, 9.125% due 5/01/08</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 1.42%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Global Crossing Holdings Ltd., Sr. Note, 9.50% due 11/15/09</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 1.34%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Allied Waste North America, Inc., Sr. Sub. Note, 10.00% due 8/01/09</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 1.32%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

NEXTEL Communications, Inc., Sr. Disc. Note, 0/9.95% due 2/15/08</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 1.21%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Allied Waste North America, Inc., Company Guarantee, 7.875% due 1/01/09</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 1.14%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Level 3 Communications, Inc., Sr. Disc. Note, 0/10.50% due 12/01/08</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 1.11%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

NTL, Inc., Sr. Disc. Note, 0/9.75% due 4/01/08</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 1.04%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Echostar DBS Corp., Sr. Note, 9.375% due 2/01/09</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 1.04%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Lyondell Chemical Company, Sr. Sub. Note, 10.875% due 5/01/09</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 0.99%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Telecommunications Techniques Co., LLC, Sr. Sub. Note, 9.75% due 5/15/08</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 0.96%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL PERCENTAGE OF PORTFOLIO</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

11.57%</P>
</TD>
</TR>
</TABLE>
<H3>

Looking further into 2000, what is your outlook for the high-yield bond market?</H3>
<P>

The intermediate-term outlook for high-yield securities is positive given strong
economic growth and wide yield spreads. However, near-term results will continue to
be negatively impacted by mutual fund redemptions and the associated "sell"
pressure on the market, as volatile equity markets may add to the negative investor
sentiment associated with high-yield bonds. Although we expect default rates to
remain high through 2000, much of the price deterioration associated with these
defaults has already occurred. The cleansing effect of the credit cycle should leave
the high-yield market with stronger credits at higher yields and lower prices which
bodes well for the future. We believe that there is good value in high-yield bonds,
although the timing of the market's recovery is hard to predict given the mutual fund
outflows.</P>
<H3>

What are your sector strategies for the fund?</H3>
<P>

From a portfolio perspective, we are overweighted in the telecommunications area
given the powerful secular growth characteristics of the sector. Also, consolidation
activity and private equity investments have positively impacted high-yield issuers
in this sector. We have modestly increased exposure to the chemical sector based upon
rising commodity prices. We are carefully reviewing positions that have
underperformed in order to identify which securities represent value at these lower
levels. Those that pose substantial risk of continued deterioration are being sold,
while those with strong recovery potential are being maintained.</P>
<H2>

Last Meeting of Shareholders</H2>
<P>

A Special Meeting of Fund shareholders was held on November 18, 1999. On September 7,
1999, the record date for shareholders voting at the meeting, there were 222,215,946
total outstanding shares. The following items were considered by shareholders and the
results of their voting were as follows:</P>
<H3>

AGENDA ITEM 1</H3>
<P>

Election of Directors:</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Withheld <BR>
Authority <BR>
to Vote</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Thomas G. Bigley</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

141,017,766</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,416,171</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Nicholas P. Constantakis</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

141,022,072</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,411,865</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

John F. Cunningham</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

141,080,454</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,353,483</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Charles F. Mansfield, Jr.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

141,092,673</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,341,264</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

John E. Murray, Jr., J.D., S.J.D.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

141,002,313</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,431,624</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

John S. Walsh</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

141,053,526</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,380,411</P>
</TD>
</TR>
</TABLE>
<H3>

AGENDA ITEM 2</H3>
<P>

To make changes to the Fund's fundamental policies:</P>
<P>

(a) To amend the Fund's fundamental investment policy regarding diversification.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,488,776</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,917,530</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(b) To amend the Fund's fundamental investment policy regarding borrowing money and
issuing senior securities.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,442,581</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,963,725</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(c) To amend the Fund's fundamental investment policy regarding investments in real
estate.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,458,180</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,948,126</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(d) To amend the Fund's fundamental investment policy regarding investments in
commodities.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,444,998</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,961,308</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(e) To amend the Fund's fundamental investment policy regarding underwriting
securities.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,489,093</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,917,213</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(f) To amend the Fund's fundamental investment policy regarding lending by the
Fund.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,441,341</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,964,965</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(g) To amend the Fund's fundamental investment policy regarding concentration of the
Fund's investments in the securities of companies in the same industry.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,489,732</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,916,574</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(h) To amend, and to make nonfundamental, the Fund's fundamental investment policy
regarding buying securities on margin.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,461,000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,945,306</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(i) To amend, and to make nonfundamental, the Fund's fundamental investment policy
regarding investing in securities of other investment companies.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,465,624</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,940,682</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(j) To make nonfundamental the Fund's fundamental investment policies relating to
investing in fixed-income and corporate debt securities.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,371,926</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

4,034,380</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(k) To make nonfundamental the Fund's fundamental investment policy relating to
investing in equity securities.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,464,930</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,941,376</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(l) To amend, and to make nonfundamental, the Fund's fundamental investment policy
relating to temporary investments.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

88,492,423</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

3,913,883</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,373,955</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<H3>

AGENDA ITEM 3</H3>
<P>

To eliminate certain of the Fund's fundamental investment policies:.</P>
<P>

(a) To remove the Fund's fundamental investment policy regarding selling securities
short.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

87,267,538</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

4,494,946</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

8,017,777</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(b) To remove the Fund's fundamental investment policy on investing in oil, gas and
minerals.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

87,284,448</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

4,478,036</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

8,017,777</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(c) To remove the Fund's fundamental investment policy on investing in securities of
new issuers.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

87,325,263</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

4,437,221</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

8,017,777</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(d) To remove the Fund's fundamental investment policy on investing in issuers whose
securities are owned by officers and Directors.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

87,264,856</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

4,497,628</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

8,017,777</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(e) To remove the Fund's fundamental investment policy on investing for the purpose
of exercising control.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

87,319,757</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

4,442,727</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

8,017,777</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(f) To remove the Fund's fundamental investment policy on dealing in puts and
calls.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

87,269,224</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

4,493,260</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

8,017,777</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(g) To remove the Fund's fundamental investment policy on investing in foreign
securities.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

87,300,073</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

4,462,411</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

8,017,777</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<P>

(h) To remove the Fund's fundamental investment policy relating to short-term trading
and portfolio turnover.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

87,312,443</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

4,450,041</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

8,017,777</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<H3>

AGENDA ITEM 4</H3>
<P>

To approve an amendment to and a restatement of the Fund's Articles of Incorporation
to permit the Board of Directors to liquidate assets of the Fund or a class without
seeking shareholder approval to the extent permitted under Maryland law. </P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>For</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Against</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Abstentions</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Broker <BR>
Non-Votes</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

83,285,245</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

9,087,516</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

7,407,500</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

44,653,676</P>
</TD>
</TR>
</TABLE>
<H2>

Two Ways You May Seek to Invest for Success:</H2>
<H3>

INITIAL INVESTMENT</H3>
<P>

<B>If you had made an initial investment of $23,000 in the Class A Shares of
Federated High Income Bond Fund, Inc. on 11/30/77, reinvested your dividends and
capital gains, and did not redeem any shares, your account would have been worth
$184,517 on 3/31/00. You would have earned a 9.79%<SUP>1</SUP> average annual total
return for the investment life span.</B></P>
<P>

One key to investing wisely is to reinvest all distributions in fund shares. This
increases the number of shares on which you can earn future dividends, and you gain
the benefit of compounding.</P>
<P>

As of 3/31/00, Class A Shares' average annual 1-year, 5-year, and 10-year total
returns were (8.92%), 6.86%, and 11.27%, respectively. Class B Shares' average annual
1-year, 5-year, and since inception (9/28/94) total returns were (10.15%), 6.73% and
7.07%, respectively. Class C Shares' average annual 1-year, 5-year, and since
inception (5/01/93) total returns were (6.32%), 7.02%, and 6.68%,
respectively.<SUP>2</SUP><SUP></SUP></P>

<H3>

 [Graphic Representation Omitted - See Appendix]</H3>

<P>

1     Total return represents the change in the value of an investment after
reinvesting all income and capital gains, and takes into account the 4.50% sales
charge applicable to an initial investment in Class A Shares. Data quoted represents
past performance and does not guarantee future results. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost.</P>
<P>

2     The total returns stated take into account all applicable sales charges. The
maximum sales charges and contingent deferred sales charges for the fund are as
follows: Class A Shares, 4.50% sales charge; Class B Shares, 5.50% contingent
deferred sales charge; Class C Shares, 1.00% contingent deferred sales charge.</P>
<H2>

</H2>
<H3>

ONE STEP AT A TIME</H3>
<P>

<B>$1,000 initial investment and subsequent investments of $1,000 each year for 22
years (reinvesting all dividends and capital gains) grew to $84,559.</B></P>
<P>

With this approach, the key is consistency.</P>
<P>

If you had started investing $1,000 annually in the Class A Shares of Federated High
Income Bond Fund, Inc. on 11/30/77, reinvested your dividends and capital gains, and
did not redeem any shares, you would have invested only $23,000, but your account
would have reached a total value of $84,559<SUP>1</SUP> by 3/31/00. You would have
earned an average annual total return of 10.21%.</P>
<P>

A practical investment plan helps you pursue long-term performance from high-yield
corporate bonds. Through systematic investing, you buy shares on a regular basis and
reinvest all earnings. An investment plan can work for you when you invest only
$1,000 annually. You can take it one step at a time. Put time, money, and compounding
to work.</P>

<H3>

 [Graphic Representation Omitted - See Appendix]</H3>

<P>

1     This chart assumes that the subsequent annual investments are made on the last
day of each anniversary month. No method of investing can guarantee a profit or
protect against loss in down markets.</P>
<H2>

Hypothetical Investor Profile--<BR>
Investing for High Monthly Income</H2>
<P>

Chuck Colby is a fictional investor who, like many other shareholders, is looking for
high monthly income opportunities.</P>
<P>

Chuck is an attorney on his way up the corporate ladder. On March 31, 1990, he
invested $5,000 in the Class A Shares of Federated High Income Bond Fund, Inc.</P>
<P>

As this chart shows, over 10 years, his original $5,000 investment has grown to
$14,540. This represents an 11.27% average annual total return. For Chuck, that means
extra money toward the construction of his first home.</P>
<H3>

 [Graphic Representation Omitted - See Appendix]</H3>


<P>

      This hypothetical scenario is provided for illustrative purposes only and does
not represent the result obtained by any particular shareholder. Past performance is
no guarantee of future results.</P>
<H2>

Federated High Income Bond Fund, Inc.--Class A Shares</H2>
<H3>

GROWTH OF A $10,000 INVESTMENT</H3>
<P>

The graph below illustrates the hypothetical investment of $10,000<SUP>1</SUP> in the
Federated High Income Bond Fund, Inc. (Class A Shares) (the "Fund") from
March 31, 1990 to March 31, 2000 compared to the Lehman Brothers Single B Rated Index
(LBSBRI)<SUP>2</SUP> and the Lipper High Current Yield Funds Average
(LHCYFA).<SUP>2</SUP></P>
<P>

</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="3">
<P>

<P ALIGN=LEFT><B>Average Annual Total Return<SUP>3</SUP> for the Period Ended March
31, 2000</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

1 Year</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 (8.92%)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

5 Years</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  6.86%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

10 Years</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

11.27%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Start of Performance (11/30/77)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  9.79%</P>
</TD>
</TR>
</TABLE>
<P>


<P>

</P>

<H3>

 [Graphic Representation Omitted - See Appendix]</H3>


<P>

<B>Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so when shares are redeemed, they may be worth more or
less than their original cost. Mutual funds are not obligations of or guaranteed by
any bank and are not federally insured.</B></P>
<P>

1     Represents a hypothetical investment of $10,000 in the Fund after deducting the
maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550).
The Fund's performance assumes the reinvestment of all dividends and distributions.
The LBSBRI and the LHCYFA have been adjusted to reflect reinvestment of dividends on
securities in the index and average.</P>
<P>

2     The LBSBRI is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission (the "SEC") requires to be
reflected in the Fund's performance. This index is unmanaged. The LHCYFA represents
the average of the total returns reported by all of the mutual funds designated by
Lipper Analytical Services, Inc. as falling in the respective category, and is not
adjusted to reflect any sales charges. However, these total returns are reported net
of expenses or other fees that the SEC requires to be reflected in a fund's
performance.</P>
<P>

3     Total return quoted reflects all applicable sales charges.</P>
<H2>

Federated High Income Bond Fund, Inc.--Class B Shares</H2>
<H3>

GROWTH OF A $10,000 INVESTMENT</H3>
<P>

The graph below illustrates the hypothetical investment of $10,000<SUP>1</SUP> in the
Federated High Income Bond Fund, Inc. (Class B Shares) (the "Fund") from
September 28, 1994 (start of performance) to March 31, 2000 compared to the Lehman
Brothers Single B Rated Index (LBSBRI)<SUP>2</SUP> and the Lipper High Current Yield
Funds Average (LHCYFA).<SUP>2</SUP></P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="3">
<P>

<P ALIGN=LEFT><B>Average Annual Total Return<SUP>3</SUP> for the Period Ended March
31, 2000</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

1 Year</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

(10.15%)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

5 Year </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   6.73%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Start of Performance (9/28/94)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   7.07%</P>
</TD>
</TR>
</TABLE>
<P>


<P>

</P>

<H3>

 [Graphic Representation Omitted - See Appendix]</H3>

<P>

<B>Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so when shares are redeemed, they may be worth more or
less than their original cost. Mutual funds are not obligations of or guaranteed by
any bank and are not federally insured.</B></P>
<P>

1     Represents a hypothetical investment of $10,000 in the Fund. The ending value
of the Fund reflects a 1.00% contingent deferred sales charge on any redemption less
than six years from the purchase date. The maximum contingent deferred sales charge
is 5.50% on any redemption less than one year from the purchase date. The Fund's
performance assumes the reinvestment of all dividends and distributions. The LBSBRI
and the LHCYFA have been adjusted to reflect reinvestment of dividends on securities
in the index and average.</P>
<P>

2     The LBSBRI is not adjusted to reflect sales charges, expenses, or other fees
that the SEC requires to be reflected in the Fund's performance. This index is
unmanaged. The LHCYFA represents the average of the total returns reported by all of
the mutual funds designated by Lipper Analytical Services, Inc. as falling into the
category and is not adjusted to reflect any sales charges. However, these total
returns are reported net of expenses or other fees that the SEC requires to be
reflected in a fund's performance.</P>
<P>

3     Total return quoted reflects all applicable contingent deferred sales
charges.</P>
<H2>

Federated High Income Bond Fund, Inc.--Class C Shares</H2>
<H3>

GROWTH OF A $10,000 INVESTMENT</H3>
<P>

The graph below illustrates the hypothetical investment of $10,000<SUP>1</SUP> in the
Federated High Income Bond Fund, Inc. (Class C Shares) (the "Fund") from
May 1, 1993 (start of performance) to March 31, 2000 compared to the Lehman Brothers
Single B Rated Index (LBSBRI)<SUP>2</SUP> and the Lipper High Current Yield Funds
Average (LHCYFA).<SUP>2</SUP></P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="3">
<P>

<P ALIGN=LEFT><B>Average Annual Total Return<SUP>3</SUP> for the Period Ended March
31, 2000</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

1 Year</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

(6.32%)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

5 Years</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 7.02%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Start of Performance (5/01/93)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 6.68%</P>
</TD>
</TR>
</TABLE>
<P>


<P>

</P>

<H3>

 [Graphic Representation Omitted - See Appendix]</H3>

<P>

<B>Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so when shares are redeemed, they may be worth more or
less than their original cost. Mutual funds are not obligations of or guaranteed by
any bank and are not federally insured.</B></P>
<P>

1     Represents a hypothetical investment of $10,000 in the Fund. The maximum
contingent deferred sales charge is 1.00% on any redemption less than one year from
the purchase date. The Fund's performance assumes the reinvestment of all dividends
and distributions. The LBSBRI and the LHCYFA have been adjusted to reflect
reinvestment of dividends on securities in the index and average.</P>
<P>

2     The LBSBRI is not adjusted to reflect sales charges, expenses, or other fees
that the SEC requires to be reflected in the Fund's performance. This index is
unmanaged. The LHCYFA represents the average of the total returns reported by all of
the mutual funds designated by Lipper Analytical Services, Inc. as falling in the
respective category, and is not adjusted to reflect any sales charges. However, these
total returns are reported net of expenses or other fees that the SEC requires to be
reflected in a fund's performance.</P>
<P>

3     Total return quoted reflects all applicable contingent deferred sales
charges.</P>
<H2>

Portfolio of Investments</H2>
<P>

MARCH 31, 2000</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--92.5%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Aerospace & Defense--0.4%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,425,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Anteon Corp., Sr. Sub. Note, 12.00%, 5/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,793,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,200,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Condor Systems, Inc., Sr. Sub. Note, 11.875%, 5/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,061,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,855,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Auto/Truck--0.4%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,325,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

J.L. French Automotive Castings, Inc., Sr. Sub. Note, 11.50%, 6/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,215,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Automotive-2.9%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,025,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Accuride Corp., Sr. Sub. Note, Series B, 9.25%, 2/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,151,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,875,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Aftermarket Technology Co., Sr. Sub. Note, 12.00%, 8/1/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,875,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,375,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Aftermarket Technology Co., Sr. Sub. Note, Series D, 12.00%, 8/1/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,375,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,150,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

American Axle & Manufacturing, Inc., 9.75%, 3/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,794,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,800,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Collins & Aikman Products Co., Sr. Sub. Note, 11.50%, 4/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,511,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,025,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

HDA Parts System, Inc., Sr. Sub. Note, 12.00%, 8/1/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,241,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,050,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Lear Corp., Sr. Note, 8.11%, 5/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,636,657</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Lear Corp., Sub. Note, 9.50%, 7/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,790,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>8,700,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Motor Coach Industries International, Inc., Company Guarantee, 11.25%, 5/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,265,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,825,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Oxford Automotive, Inc., Company Guarantee, 10.125%, 6/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,466,687</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>59,107,219</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Banking--0.6%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>13,900,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

GS Escrow Corp., Sr. Note, 7.125%, 8/1/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>12,506,942</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Beverage & Tobacco--0.2%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,825,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

National Wine & Spirits, Inc., Sr. Note, 10.125%, 1/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,607,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Broadcast Radio & TV--5.5%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>8,875,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

ACME Television, LLC, Sr. Disc. Note, Series B, 0/10.875%, 9/30/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,165,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,529,600</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

AMFM, Inc., Deb., 12.625%, 10/31/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,736,096</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>12,375,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Big City Radio, Inc., Sr. Disc. Note, 0/11.25%, 3/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,363,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,786,700</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Capstar Broadcasting Partners, Inc., Bond, 12.00%, 7/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,408,971</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,375,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Capstar Broadcasting Partners, Inc., Sr. Sub. Note, 9.25%, 7/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,396,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,200,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Chancellor Media Corp., Company Guarantee, 10.50%, 1/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,577,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>150,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Chancellor Media Corp., Company Guarantee, 9.00%, 10/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>151,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Broadcast Radio & TV--continued</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>16,850,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Chancellor Media Corp., Sr. Sub. Note, 8.125%, 12/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>16,681,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Chancellor Media Corp., Sr. Sub. Note, 8.75%, 6/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,425,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>22,625,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Fox/Liberty Networks LLC, Sr. Disc. Note, 0/9.75%, 8/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>17,986,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,400,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Fox/Liberty Networks LLC, Sr. Note, 8.875%, 8/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,425,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,400,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Lamar Media Corp., Sr. Sub. Note, 9.625%, 12/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,364,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,050,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Orion Network Systems, Sr. Note, 11.25%, 1/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,783,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,425,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sinclair Broadcast Group, Inc., Sr. Sub. Note, 10.00%, 9/30/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,346,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,400,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sinclair Broadcast Group, Inc., Sr. Sub. Note, 8.75%, 12/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,084,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,475,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sinclair Broadcast Group, Inc., Sr. Sub. Note, 9.00%, 7/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,790,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,175,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

XM Satellite Radio, Inc., Unit, 14.00%, 3/15/2010</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,696,438</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,025,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Young Broadcasting, Inc., Sr. Sub. Note, 10.125%, 2/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,919,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Young Broadcasting, Inc., Sr. Sub. Note, 11.75%, 11/15/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,035,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>112,337,005</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Building & Development--1.1%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,850,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

American Builders & Contractors Supply Co., Inc., Sr. Sub. Note, 10.625%,
5/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,943,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,850,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Building Materials Corp. of America, Sr. Note, 8.625%, 12/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,389,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,525,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Formica Corp., Sr. Sub. Note, 10.875%, 3/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,676,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,100,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Juno Lighting, Inc., Sr. Sub. Note, 11.875%, 7/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,464,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,225,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NCI Building System, Inc., Sr. Sub. Note, Series B, 9.25%, 5/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,929,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>22,403,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Business Equipment & Services--2.2%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,025,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Buhrmann US, Inc., Sr. Sub. Note, 12.25%, 11/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,095,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,525,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Dialog Corp., Sr. Sub. Note, 11.00%, 11/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>10,156,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,850,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Electronic Retailing Systems International, Inc., Sr. Disc. Note, 13.25%, 2/1/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,091,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,325,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Fisher Scientific International, Inc., Sr. Sub. Note, 9.00%, 2/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,485,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>12,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Fisher Scientific International, Inc., Sr. Sub. Note, 9.00%, 2/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,375,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>17,900,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

U.S. Office Products Co., Sr. Sub. Note, 9.75%, 6/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,891,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>45,095,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Cable Television--11.0%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>91,523</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Australis Media Ltd., Sr. Secured Disc. Note, 5/15/2003</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,373</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,350,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2, 3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Australis Media Ltd., Unit, 0/14.00%, 5/15/2003</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>80,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CSC Holdings, Inc., Sr. Note, 7.875%, 12/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,950,230</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,850,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CSC Holdings, Inc., Sr. Sub. Deb., 9.875%, 2/15/2013</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,946,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>11,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CSC Holdings, Inc., Sr. Sub. Note, 9.25%, 11/1/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,557,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,175,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CSC Holdings, Inc., Sr. Sub. Note, 9.875%, 5/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,279,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>21,925,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Charter Communications Holdings Capital Corp., Sr. Disc. Note, 0/9.92%, 4/1/2011</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>12,113,562</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>550,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Charter Communications Holdings Capital Corp., Sr. Note, 8.625%, 4/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>488,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,250,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Comcast UK Cable, Deb., 0/11.20%, 11/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,095,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>13,275,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Diamond Cable Communications PLC, Sr. Disc. Note, 0/10.75%, 2/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>10,155,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,675,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Diamond Cable Communications PLC, Sr. Disc. Note, 0/11.75%, 12/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,176,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,750,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Diamond Cable Communications PLC, Sr. Disc. Note, 0/13.25%, 9/30/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,993,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>21,600,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Echostar DBS Corp., Sr. Note, 9.375%, 2/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>21,060,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,725,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Golden Sky DBS, Inc., Sr. Disc. Note, Series B, 0/13.50%, 3/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,164,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>12,625,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

International Cabletel, Inc., Sr. Defd. Cpn. Note, 0/11.50%, 2/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,804,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,250,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

International Cabletel, Inc., Sr. Disc. Note, 0/12.75%, 4/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,468,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,475,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Lenfest Communications, Inc., Sr. Sub. Note, 10.50%, 6/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,754,180</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,600,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Lenfest Communications, Inc., Sr. Sub. Note, 8.25%, 2/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,744,816</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>16,475,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NTL, Inc., Sr. Disc. Note, 0/12.375%, 10/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>10,708,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>32,800,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NTL, Inc., Sr. Disc. Note, 0/9.75%, 4/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>21,238,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NTL, Inc., Sr. Note, 11.50%, 10/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,060,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,475,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Pegasus Communications Corp., Sr. Note, 9.625%, 10/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,248,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Pegasus Communications Corp., Sr. Note, 9.75%, 12/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,860,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Pegasus Media Sr. Sub. Note, 12.50%, 7/1/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,837,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>11,425,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

RCN Corp., Sr. Disc. Note, 0/11.125%, 10/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,369,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>400,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

RCN Corp., Sr. Disc. Note, 0/11.00%, 7/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>236,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,375,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

RCN Corp., Sr. Disc. Note, 0/9.80%, 2/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,401,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Rogers Cablesystems Ltd., Sr. Sub. GTD Deb., 11.00%, 12/1/2015</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,377,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

TeleWest PLC, Sr. Disc. Deb., 0/11.00%, 10/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,580,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,825,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

TeleWest PLC, Sr. Note, 11.25%, 11/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,902,563</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Cable Television--continued</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>12,900,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

UIH Australia/Pacific, Sr. Disc. Note, 0/14.00%, 5/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,900,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>19,600,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

United International Holdings, Inc., Sr. Secd. Disc. Note, 0/10.75%, 2/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>13,671,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,250,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

United Pan-Europe Communications NV, Sr. Disc. Note, 0/13.375%, 11/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,278,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>19,675,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

United Pan-Europe Communications NV, Sr. Disc. Note, Series B, 0/12.50%, 8/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,837,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

United Pan-Europe Communications NV, Sr. Note, 10.875%, 8/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>925,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>224,265,599</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Chemicals & Plastics--4.7%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,050,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Buckeye Cellulose Corp., Sr. Sub. Note, 9.25%, 9/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,075,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Foamex LP, Sr. Sub. Note, 13.50%, 8/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,262,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,375,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

General Chemical Industrial Products, Inc., Sr. Sub. Note, 10.625%, 5/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,703,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,750,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Georgia Gulf Corp., Sr. Sub. Note, 10.375%, 11/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,777,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,400,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Huntsman Corp., Sr. Sub. Note, 9.50%, 7/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,554,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>8,525,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Huntsman ICI Chemicals LLC, Sr. Sub. Note, 10.125%, 7/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,205,312</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,725,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

ISP Holding, Inc., Sr. Note, 9.00%, 10/15/2003</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,408,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,270,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

ISP Holding, Inc., Sr. Note, 9.75%, 2/15/2002</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,122,850</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,150,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Lyondell Chemical Co., Sr. Secd. Note, Series A, 9.625%, 5/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,099,687</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>21,575,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Lyondell Chemical Co., Sr. Sub. Note, Series B, 10.875%, 5/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>20,172,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,900,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Polymer Group, Inc., Sr. Sub. Note, 8.75%, 3/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,912,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>17,125,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Polymer Group, Inc., Sr. Sub. Note, 9.00%, 7/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>15,155,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,625,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sterling Chemicals Holdings, Inc., Sr. Secured Disc. Note, 0/13.50%, 8/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,224,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sterling Chemicals, Inc., Sr. Sub. Note, 11.25%, 4/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>407,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,650,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sterling Chemicals, Inc., Sr. Sub. Note, 11.75%, 8/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,619,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,450,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Texas Petrochemicals Corp., Sr. Sub. Note, 11.125%, 7/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,385,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>96,086,224</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Clothing & Textiles--1.0%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,575,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Collins & Aikman Floorcoverings, Inc., Sr. Sub. Note, 10.00%, 1/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,437,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,025,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Dyersburg Corp., Sr. Sub. Note, 9.75%, 9/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,741,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>8,475,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

GFSI, Inc., Sr. Sub. Note, 9.625%, 3/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,466,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,075,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Glenoit Corp., Sr. Sub. Note, 11.00%, 4/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,087,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,750,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Pillowtex Corp., Sr. Sub. Note, 10.00%, 11/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,480,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,700,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Pillowtex Corp., Sr. Sub. Note, 9.00%, 12/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,066,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>19,279,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Conglomerates--0.5%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>11,950,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Eagle Picher Industries, Inc., Sr. Sub. Note, 9.375%, 3/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>10,217,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Consumer Products--3.9%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>13,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Albecca, Inc., Company Guarantee, 10.75%, 8/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>10,698,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,900,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

American Safety Razor Co., Sr. Note, 9.875%, 8/1/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,744,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,450,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Amscan Holdings, Inc., Sr. Sub. Note, 9.875%, 12/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,579,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,250,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Chattem, Inc., Sr. Sub. Note, 8.875%, 4/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,908,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,400,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Diamond Brands Operating Corp., Sr. Sub. Note, 10.125%, 4/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>917,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,375,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Diamond Brands, Inc., Sr. Disc. Deb., 0/12.875%, 4/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>415,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,150,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NBTY, Inc., Sr. Sub. Note, 8.625%, 9/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,849,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,675,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Playtex Family Products Corp., Sr. Sub. Note, 9.00%, 12/15/2003</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,608,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Revlon Consumer Products Corp., Sr. Note, 8.125%, 2/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,502,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>24,925,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Revlon Consumer Products Corp., Sr. Sub. Note, 8.625%, 2/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,091,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,125,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Scotts Co., Sr. Sub. Note, 8.625%, 1/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,856,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,050,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sealy Mattress Co., Company Guarantee, Sr. Sub. Disc. Note, 0/10.875%, 12/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,535,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,400,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sealy Mattress Co., Sr. Sub. Note, 9.875%, 12/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,316,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sleepmaster LLC, Sr. Sub. Note, Series B, 11.00%, 5/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,985,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,958,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

The Boyds Collection, Ltd., Sr. Sub. Note, Series B, 9.00%, 5/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,662,200</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,375,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

True Temper Sports, Inc., Sr. Sub. Note, Series B, 10.875%, 12/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,133,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,025,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

United Industries Corp., Sr. Sub. Note, 9.875%, 4/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,542,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,475,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Volume Services America, Inc., Sr. Sub. Note, 11.25%, 3/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,213,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>78,558,825</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Container & Glass Products--0.7%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,350,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Russell Stanley Holdings, Inc., Sr. Sub. Note, 10.875%, 2/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,627,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,100,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Tekni-Plex, Inc., Sr. Sub. Note, 9.25%, 3/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,645,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>14,273,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Ecological Services & Equipment--2.5%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>28,800,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Allied Waste North America, Inc., Company Guarantee, 7.875%, 1/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>23,184,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>35,425,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Allied Waste North America, Inc., Sr. Sub. Note, 10.00%, 8/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>26,745,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>49,929,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Electronics--1.4%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,325,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Fairchild Semiconductor Corp., Sr. Sub. Note, 10.375%, 10/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,283,437</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,550,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

SCG Holding Corp./Semiconductor Components Industries, LLC, 12.00%, 8/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,966,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>21,250,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Telecommunications Techniques Co., LLC, Sr. Sub. Note, 9.75%, 5/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>19,496,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>28,746,562</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Farming & Agriculture--0.1%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,100,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Royster-Clark, Inc., 1st Mtg. Note, 10.25%, 4/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,635,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Food & Drug Retailers--0.2%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,750,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Community Distributors, Inc., Sr. Note, 10.25%, 10/15/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,800,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,525,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Jitney-Jungle Stores of America, Inc., Sr. Sub. Note, 10.375%, 9/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>119,062</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,919,062</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Food Products--1.8%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>11,925,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Agrilink Foods, Inc., Company Guarantee, 11.875%, 11/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>10,911,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,325,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Aurora Foods, Inc., Sr. Sub. Note, 9.875%, 2/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,346,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,950,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Aurora Foods, Inc., Sr. Sub. Note, 9.875%, 2/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,194,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,875,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Eagle Family Foods, Inc., Sr. Sub. Note, 8.75%, 1/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,846,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>8,950,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

International Home Foods, Inc., Sr. Sub. Note, 10.375%, 11/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,815,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,125,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Triarc Consumer Products Group, LLC, Sr. Sub. Note, 10.25%, 2/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,568,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>36,683,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Food Services--0.7%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,200,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Advantica Restaurant Group, Sr. Note, 11.25%, 1/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,692,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,100,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Carrols Corp., Sr. Sub. Note, 9.50%, 12/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,215,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,725,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Domino's, Inc., Company Guarantee, 10.375%, 1/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,323,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,965,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2, 3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Nebco Evans Holding Co., Sr. Disc. Note, 0/12.375%, 7/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>13,230,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Forest Products--0.9%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,250,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Container Corp. of America, Sr. Note, 11.25%, 5/1/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,313,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,150,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Stone Container Corp., Sr. Note, 11.50%, 10/1/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,573,187</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,675,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Stone Container Corp., Sr. Note, 12.58%, 8/1/2016</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,822,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Stone Container Corp., Unit 9.875%, 4/1/2002</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,005,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>17,714,062</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Health Care--4.1%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,225,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CONMED Corp., Sr. Sub. Note, 9.00%, 3/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,355,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,800,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Columbia/HCA Healthcare Corp., Sr. Note, 6.91%, 6/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,628,568</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,950,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Dade International, Inc., Sr. Sub. Note, 11.125%, 5/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,452,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,175,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Everest Healthcare Services Corp., Sr. Sub. Note, 9.75%, 5/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,341,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,750,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Genesis Health Ventures, Inc., Sr. Sub. Note, 9.25%, 10/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>233,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,300,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Genesis Health Ventures, Inc., Sr. Sub. Note, 9.75%, 6/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>110,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,350,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Genesis Health Ventures, Inc., Sr. Sub. Note, 9.875%, 1/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>456,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Hanger Orthopedic Group, Inc., Sr. Sub. Note, 11.25%, 6/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,037,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,275,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Hudson Respiratory Care, Inc., Sr. Sub. Note, 9.125%, 4/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,570,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>12,675,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Kinetic Concepts, Inc., Company Guarantee, 9.625%, 11/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,999,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Tenet Healthcare Corp., Sr. Note, 7.625%, 6/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,800,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>12,625,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Tenet Healthcare Corp., Sr. Note, 8.00%, 1/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,930,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>11,950,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Tenet Healthcare Corp., Sr. Sub. Note, 8.125%, 12/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>10,994,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>13,300,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Tenet Healthcare Corp., Sr. Sub. Note, 8.625%, 1/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>12,635,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,575,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Unilab Corp., Sr. Sub. Note, 12.75%, 10/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,562,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>83,108,693</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Hotels, Motels, Inns & Casinos--2.1%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,550,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Courtyard by Marriott II LP, Sr. Note, 10.75%, 2/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,504,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>14,250,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Florida Panthers Holdings, Inc., Company Guarantee, 9.875%, 4/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>13,038,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

HMH Properties, Inc., Sr. Note, Series A, 7.875%, 8/1/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>880,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>19,625,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

HMH Properties, Inc., Sr. Note, Series B, 7.875%, 8/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>16,632,187</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,750,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

HMH Properties, Inc., Sr. Note, Series C, 8.45%, 12/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,531,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>43,586,687</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Industrial Products & Equipment--3.7%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,845,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Amphenol Corp., Sr. Sub. Note, 9.875%, 5/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,941,900</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,825,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Blount, Inc., Sr. Sub. Note, 13.00%, 8/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,997,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,650,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Cabot Safety Acquisition Corp., Sr. Sub. Note, 12.50%, 7/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,733,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,895,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Continental Global Group, Inc., Sr. Note, 11.00%, 4/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,758,225</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,850,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Euramax International PLC, Sr. Sub. Note, 11.25%, 10/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,693,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,175,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Hexcel Corp., Sr. Sub. Note, Series B, 9.75%, 1/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,714,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,325,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

ISG Resources, Inc., Sr. Sub. Note, 10.00%, 4/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,597,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,350,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

International Utility Structures, Inc., Sr. Sub. Note, 10.75%, 2/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,864,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>11,325,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

MMI Products, Inc., Sr. Sub. Note, 11.25%, 4/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,523,187</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Industrial Products & Equipment--continued</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,400,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Neenah Corp., Sr. Sub. Note, 11.125%, 5/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,401,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1 </SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Neenah Corp., Sr. Sub. Note, 11.125%, 5/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,595,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,375,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Unifrax Investment Corp., Sr. Note, 10.50%, 11/1/2003</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,998,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>14,075,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

WESCO Distribution, Inc., Sr. Sub. Note, 9.125%, 6/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>12,386,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>74,203,812</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Leisure & Entertainment--2.2%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,502,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

AMF Group, Inc., Sr. Sub. Disc. Note, 0/12.25%, 3/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,678,010</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,450,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

AMF Group, Inc., Sr. Sub. Note, 10.875%, 3/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>918,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>18,625,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Premier Parks, Inc., Sr. Disc. Note, 0/10.00%, 4/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,896,719</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,650,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Premier Parks, Inc., Sr. Note, 9.25%, 4/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,464,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>16,950,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Premier Parks, Inc., Sr. Note, 9.75%, 6/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>15,848,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>23,800,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Regal Cinemas, Inc., Sr. Sub. Note, 9.50%, 6/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>10,353,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>44,159,229</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Machinery & Equipment--2.8%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>8,375,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Clark Material Handling Corp., Sr. Note, 10.75%, 11/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,298,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,150,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Columbus McKinnon Corp., Sr. Sub. Note, 8.50%, 4/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,609,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>8,200,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Fairchild Corp., Sr. Sub. Note, 10.75%, 4/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,469,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,300,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

National Equipment Services, Inc., Sr. Sub. Note, 10.00%, 11/30/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,849,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,100,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

National Equipment Services, Inc., Sr. Sub. Note, Series C, 10.00%, 11/30/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,496,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,700,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NationsRent, Inc., Company Guarantee, 10.375%, 12/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,523,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>13,200,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

United Rentals, Inc., Company Guarantee, 9.25%, 1/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,781,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>11,450,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

United Rentals, Inc., Company Guarantee, Series B, 9.00%, 4/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>10,047,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,125,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

WEC Co., Sr. Note, 12.00%, 7/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,535,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>57,609,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Metals & Mining--0.2%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>8,625,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

AEI Holding Co., Inc., Sr. Note, 10.50%, 12/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,811,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>11,475,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

AEI Resources, Inc., Sr. Sub. Note, 11.50%, 12/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,262,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,450,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Murrin Holdings Pty Ltd., Sr. Secd. Note, 9.375%, 8/31/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,283,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,356,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Oil & Gas--2.4%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,975,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Comstock Resources, Inc., Sr. Note, 11.25%, 5/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,925,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,250,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Continental Resources, Inc., Sr. Sub. Note, 10.25%, 8/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,122,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,275,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

DI Industries, Inc., Sr. Note, 8.875%, 7/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,972,063</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Oil & Gas--continued</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,975,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Forest Oil Corp., Sr. Sub. Note, 10.50%, 1/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,989,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,150,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Pogo Producing Co., Sr. Sub. Note, 10.375%, 2/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,257,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Pride Petroleum Services, Inc., Sr. Note, 9.375%, 5/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,860,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,125,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

R&B Falcon Corp., Sr. Note, 12.25%, 3/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,695,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

RBF Finance Co., Company Guarantee, 11.00%, 3/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,625,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,025,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

RBF Finance Co., Sr. Secured Note, 11.375%, 3/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,364,188</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,225,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

The Houston Exploration Co., Sr. Sub. Note, 8.625%, 1/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,047,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,275,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Triton Energy Corp., Sr. Note, 8.75%, 4/15/2002</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,275,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,025,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Universal Compression Holdings, Inc., Sr. Disc. Note, 0/11.375%, 2/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,573,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>49,706,501</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Printing & Publishing--0.8%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,225,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Garden State Newspapers, Inc., Sr. Sub. Note, 8.75%, 10/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,696,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,050,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Hollinger International Publishing, Inc., Sr. Sub. Note, 9.25%, 2/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,772,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,900,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Hollinger International Publishing, Inc., Sr. Sub. Note, 9.25%, 3/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,740,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>750,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

K-III Communications Corp., Company Guarantee, Sr. Note, 8.50%, 2/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>712,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,800,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Primedia, Inc., Sr. Note, 7.625%, 4/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,344,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>16,266,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Real Estate--0.2%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,371,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Trizec Finance Ltd., Sr. Note, 10.875%, 10/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,480,275</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Retailers--0.1%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,750,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Leslie's Poolmart, Inc., Sr. Note, 10.375%, 7/15/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,456,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Services--2.6%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,600,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Coinmach Corp., Sr. Note, 11.75%, 11/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,258,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>24,400,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Crown Castle International Corp., Sr. Disc. Note, 0/10.375%, 5/15/2011</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>14,030,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,800,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Crown Castle International Corp., Sr. Disc. Note, 0/11.25%, 8/1/2011</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,733,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,900,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Metricom, Inc., Company Guarantee, 13.00%, 2/15/2010</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,091,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,200,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Orius Capital Corp., Sr. Sub. Note, 12.75%, 2/1/2010</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,262,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,150,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

SITEL Corp., Sr. Sub. Note, 9.25%, 3/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,712,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,050,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

SpectraSite Holdings, Inc., Sr. Disc. Note, 0/12.875%, 3/15/2010</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,570,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,075,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

URS Corp., Sr. Sub. Note, Series B, 12.25%, 5/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,110,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>53,767,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Steel--0.7%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>750,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

AK Steel Corp., Sr. Note, 9.125%, 12/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>736,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,325,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Metals USA, Inc., Sr. Sub. Note, 8.625%, 2/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,692,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,650,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

National Steel Corp., 1st Mtg. Bond, 9.875%, 3/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,568,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,200,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Republic Technologies International, Inc., 13.75%, 7/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,395,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Ryerson Tull, Inc., Sr. Note, 9.125%, 7/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>983,280</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>13,376,280</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Surface Transportation--2.0%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,800,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Allied Holdings, Inc., Sr. Note, 8.625%, 10/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,176,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,975,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

AmeriTruck Distribution Corp., Sr. Sub. Note, 12.25%, 11/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>174,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,350,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Gearbulk Holding Ltd., Sr. Note, 11.25%, 12/1/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,508,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,875,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Railworks Corp., Company Guarantee, 11.50%, 4/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,704,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>13,700,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Stena AB, Sr. Note, 10.50%, 12/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>12,124,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,450,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Stena AB, Sr. Note, 8.75%, 6/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,063,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Stena Line AB, Sr. Note, 10.625%, 6/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,450,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,400,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

The Holt Group, Inc., Company Guarantee, 9.75%, 1/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,706,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>39,907,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Telecommunications & Cellular--25.1%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,200,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Arch Communications, Inc., Sr. Note, Series B, 12.75%, 7/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,038,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>12,375,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Call-Net Enterprises, Inc., Sr. Disc. Note, 0/10.80%, 5/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,630,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>18,725,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Call-Net Enterprises, Inc., Sr. Disc. Note, 0/8.94%, 8/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,292,843</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>12,375,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Call-Net Enterprises, Inc., Sr. Disc. Note, 0/9.27%, 8/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,179,604</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>8,450,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Centennial Cellular Corp., Sr. Sub. Note, 10.75%, 12/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,534,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>12,150,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Dolphin Telecom PLC, Sr. Disc. Note, 0/14.00%, 5/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,920,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,975,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

E.Spire Communications, Inc., Sr. Disc. Note, 0/12.75%, 4/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,437,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Global Crossing Holdings Ltd., Sr. Note, 9.125%, 11/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,443,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>28,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Global Crossing Holdings Ltd., Sr. Note, 9.50%, 11/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>27,230,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,025,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Hermes Europe Railtel B.V., Sr. Note, 10.375%, 1/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,122,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>14,200,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Hermes Europe Railtel B.V., Sr. Note, 11.50%, 8/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>13,348,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,300,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Intermedia Communications, Inc., Sr. Disc. Note, 0/11.25%, 7/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,557,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>18,300,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Intermedia Communications, Inc., Sr. Disc. Note, 0/12.50%, 5/15/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>16,744,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>12,650,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Intermedia Communications, Inc., Sr. Disc. Note, Series B, 0/12.25%, 3/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,653,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,300,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Intermedia Communications, Inc., Sr. Note, 8.60%, 6/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,512,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Intermedia Communications, Inc., Sr. Note, 8.875%, 11/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,106,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Telecommunications & Cellular--continued</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>40,225,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Level 3 Communications, Inc., Sr. Disc. Note, 0/10.50%, 12/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>22,526,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>33,450,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Level 3 Communications, Inc., Sr. Note, 9.125%, 5/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>28,934,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>16,025,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

McLeod, Inc., Sr. Disc. Note, 0/10.50%, 3/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>12,579,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,725,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

McLeod, Inc., Sr. Note, 8.125%, 2/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,384,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

McLeod, Inc., Sr. Note, 8.375%, 3/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,670,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,725,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

McLeod, Inc., Sr. Note, 9.25%, 7/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,488,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,850,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

McLeod, Inc., Sr. Note, 9.50%, 11/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,528,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,875,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Metromedia Fiber Network, Inc., Sr. Note, 10.00%, 12/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,529,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>17,275,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Millicom International Cellular S.A., Sr. Disc. Note, 0/13.50%, 6/1/2006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>14,424,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>14,950,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NEXTEL Communications, Inc., Sr. Disc. Note, 0/10.65%, 9/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,025,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>36,300,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NEXTEL Communications, Inc., Sr. Disc. Note, 0/9.95%, 2/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>24,502,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,425,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NEXTEL Communications, Inc., Sr. Note, 9.375%, 11/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,718,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,750,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Nextel International, Inc., Sr. Disc. Note, 0/12.125%, 4/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,087,530</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,700,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Nextel Partners, Inc., Sr. Disc. Note, 0/14.00%, 2/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,288,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>14,150,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NEXTLINK Communications, Inc., Sr. Disc. Note, 0/12.125%, 12/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,428,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>28,800,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NEXTLINK Communications, Inc., Sr. Disc. Note, 0/12.25%, 6/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>16,704,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,950,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NEXTLINK Communications, Inc., Sr. Disc. Note, 0/9.45%, 4/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,750,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,275,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NEXTLINK Communications, Inc., Sr. Note, 10.75%, 6/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,180,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>8,650,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NEXTLINK Communications, Inc., Sr. Note, 9.00%, 3/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,979,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>8,750,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Northpoint Communications Group, Inc., Sr. Note, 12.875%, 2/15/2010</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,809,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>12,025,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

PsiNet, Inc., Sr. Note, 10.00%, 2/15/2005</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,483,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,475,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

PsiNet, Inc., Sr. Note, 11.00%, 8/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,345,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,200,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

PsiNet, Inc., Sr. Note, 11.50%, 11/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,200,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,525,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Qwest Communications International, Inc., Sr. Disc. Note, 0/8.29%, 2/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,813,062</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Qwest Communications International, Inc., Sr. Disc. Note, 0/9.47%, 10/15/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,635,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Rhythms NetConnections, Inc., Sr. Note, 14.00%, 2/15/2010</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,340,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>11,050,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Rogers Cantel Mobile, Inc., Sr. Sub. Note, 8.80%, 10/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,050,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,625,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Telesystem International Wireless, Inc., Sr. Disc. Note, 0/10.50%, 11/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,155,625</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>15,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Telesystem International Wireless, Inc., Sr. Disc. Note, 0/13.25%, 6/30/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,375,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>13,775,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Teligent AB, Sr. Disc. Note, 0/11.50%, 3/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,507,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,675,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Teligent AB, Sr. Note, 11.50%, 12/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,660,875</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Tritel PCS, Inc., Sr. Sub. Disc. Note, 0/12.75%, 5/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,480,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>18,450,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Triton PCS, Inc., Sr. Disc. Note, 0/11.00%, 5/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>12,546,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Principal <BR>
Amount<BR>
or Shares</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CORPORATE BONDS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Telecommunications & Cellular--continued</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,675,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

US Unwired, Inc., Sr. Disc. Note, 0/13.375%, 11/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,621,188</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,625,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

US Xchange, L.L.C., Sr. Note, 15.00%, 7/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,232,813</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,550,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

USA Mobile Communications, Inc., Sr. Note, 9.50%, 2/1/2004</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,153,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Verio, Inc., Sr. Note, 10.625%, 11/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,825,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,600,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Verio, Inc., Sr. Note, 11.25%, 12/1/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,600,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,050,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Viatel, Inc., Sr. Note, 11.50%, 3/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,746,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>9,875,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Viatel, Inc., Unit, 0/12.50%, 4/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,579,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,775,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Viatel, Inc., Unit, 11.25%, 4/15/2008</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,114,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>28,225,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Voicestream Wireless Holding Corp., Sr. Disc. Note, 0/11.875%, 11/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>16,935,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,875,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Voicestream Wireless Holding Corp., Sr. Note, 10.375%, 11/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,875,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,150,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Williams Communications Group, Inc., Sr. Note, 10.70%, 10/1/2007</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,139,250</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,600,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Williams Communications Group, Inc., Sr. Note, 10.875%, 10/1/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,531,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,853,500</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

WinStar Communications, Inc., Sr. Sub. Defd. Deb., 12.75%, 4/15/2010</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,747,529</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>17,146,500</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

WinStar Communications, Inc., Sr. Sub. Defd. Deb.12.75%, 4/15/2010</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7,973,123</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>509,957,317</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Utilities--0.8%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CMS Energy Corp., Sr. Note, 7.50%, 1/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,139,325</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Caithness Coso Funding Corp., Sr. Secd. Note, 9.05%, 12/15/2009</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,342,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,975,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

El Paso Electric Co., 1st Mtg. Note, 9.40%, 5/1/2011</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,524,637</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,100,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Niagara Mohawk Power Corp., Sr. Disc. Note, Series H, 0/8.50%, 7/1/2010</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,628,823</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>16,635,285</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL CORPORATE BONDS (IDENTIFIED COST $2,199,066,902)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,880,245,204</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

COMMON STOCKS--0.2%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,184</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Australis Holdings Property Ltd., Warrants</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,400</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Bar Technologies, Inc., Warrants</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,700</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>136</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

CS Wireless Systems, Inc.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>19</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,850</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Electronic Retailing Systems International, Inc., Warrants</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,850</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>353</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

MAFCO Acquisition, Warrants </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>7,500</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Medianews Group, Inc. </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,125,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,900</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Metricom, Inc., Warrants</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>246,225</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,650</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

MetroNet Communications Corp., Warrants</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>997,500</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1,750</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Motels of America, Inc.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>438</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Shares</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

COMMON STOCKS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,425</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1, 3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

R&B Falcon Corp., Warrants</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,549,856</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,200</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Republic Technologies International, Inc., Warrants</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,720</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>237,797</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Royal Oak Mines, Inc.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,378</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>6,325</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sterling Chemicals Holdings, Inc., Warrants</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>113,850</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>46</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sullivan Graphics, Inc.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>14,150</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

UIH Australia/Pacific, Warrants</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>428,038</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>14,400</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Wireless One, Inc., Warrants</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL COMMON STOCKS (IDENTIFIED COST $2,207,423)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,474,574</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

PREFERRED STOCKS--3.8%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Banking--0.1%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>120,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

California Federal Preferred Capital Corp., REIT Perpetual Pfd. Stock, Series A,
$2.28</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,625,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Broadcast Radio & TV--0.8%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>5,350</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Benedek Communications Corp., Sr. Exchangeable PIK</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,413,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>1</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Cumulus Media, Inc.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>765</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>119,150</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Sinclair Broadcast Group, Inc., Cumulative Pfd., $11.63</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,497,975</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>15,912,490</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Cable Television--0.5%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>10,466</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Pegasus Communications Corp., Cumulative PIK Pfd., Series A, 12.75%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,041,630</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Food Services--0.0%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>54,676</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Nebco Evans Holding Co., Exchangeable Pfd. Stock</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>34,173</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Health Care--0.1%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>20,388</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

River Holding Corp., Sr. Exchangeable PIK</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,400,329</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Industrial Products & Equipment--0.2%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,575</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Fairfield Manufacturing Co., Inc., Cumulative Exchangeable Pfd. Stock</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,414,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>130</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

International Utility Structures, Inc., Unit</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>97,825</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>475</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

International Utility Structures, Inc., Unit, $13.00</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>406,125</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,918,075</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Oil & Gas--0.6%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>11,737</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

R&B Falcon Corp., PIK Pfd., 13.875%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>12,969,385</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Printing & Publishing--0.9%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>13,675</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Primedia, Inc., Cumulative Pfd., Series D, $10.00</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,326,475</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>128,025</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Primedia, Inc., Exchangeable Pfd. Stock, Series G, $2.16</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,010,150</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>72,500</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

Primedia, Inc., Pfd., $9.20</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>6,633,750</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>18,970,375</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=LEFT><B>Shares or<BR>
Principal <BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

PREFERRED STOCKS--continued</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<B>Telecommunications & Cellular--0.6%</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>2,629</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

IXC Communications, Inc., Cumulative Jr. Exchangeable Pfd. Stock</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,740,733</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>4,498</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NEXTEL Communications, Inc., Cumulative PIK Pfd., Series D, 13.00%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,722,900</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>3,955</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

NEXTEL Communications, Inc., Exchangeable Pfd. Stock, Series E</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,816,575</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,280,208</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL PREFERRED STOCKS (IDENTIFIED COST $85,942,268)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>78,151,665</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

REPURCHASE AGREEMENT--1.0%<SUP>4</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>19,755,000</P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

ABN AMRO, Inc., 6.18%, dated 3/31/2000, due 4/3/2000 (at amortized cost)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>19,755,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="TOP">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  TOTAL INVESTMENTS (IDENTIFIED COST $2,306,971,593)<SUP>5</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,982,626,443</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>

<HR>
</TD>
</TR>
</TABLE>
<P>

1     Denotes a restricted security which is subject to restrictions on resale under
federal securities laws. These securities have been deemed liquid based upon criteria
approved by the fund's Board of Directors. At March 31, 2000, these securities
amounted to $201,524,350 which represents 9.9% of net assets.</P>
<P>

2     Denotes a zero coupon bond with effective rate at time of purchase.</P>
<P>

3     Non-income producing security.</P>
<P>

4     The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investment in the repurchase agreement is through participation in a joint account
with other Federated funds.</P>
<P>

5     The cost of investments for federal tax purposes amounts to $2,306,985,262. The
net unrealized depreciation of investments on a federal tax basis amounts to
$324,358,819 which is comprised of $13,021,644 appreciation and $337,380,463
depreciation at March 31, 2000.</P>
<P>

Note: The categories of investments are shown as a percentage of net assets
($2,032,671,671) at March 31, 2000.</P>
<P>

The following acronyms are used throughout this portfolio:</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

GTD</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

- --Guaranteed</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

PIK</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

- --Payment in Kind</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

REIT</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

- --Real Estate Investment Trust </P>
</TD>
</TR>
</TABLE>
<P>

See Notes which are an integral part of the Financial Statements</P>
<H2>

Statement of Assets and Liabilities</H2>
<P>

MARCH 31, 2000</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Assets:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Total investments in securities, at value (identified cost $2,306,971,593 and tax
cost $2,306,985,262)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,982,626,443</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Income receivable</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>47,730,046</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Receivable for investments sold</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>18,258,957</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Receivable for shares sold</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,730,646</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL ASSETS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,054,346,092</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Liabilities:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Payable for investments purchased</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>14,424,686</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Payable for shares redeemed</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,909,526</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Payable to bank</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>312,637</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Accrued expenses</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,027,572</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL LIABILITIES</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>21,674,421</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net assets for 207,159,728 shares outstanding</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,032,671,671</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Net Assets Consist of:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Paid in capital</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,407,167,204</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net unrealized depreciation of investments </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(324,345,150</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Accumulated net realized loss on investments </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(54,249,210</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Undistributed net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,098,827</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL NET ASSETS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,032,671,671</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Net Asset Value, Offering Price and Redemption Proceeds Per Share</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Class A Shares:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net Asset Value Per Share ($722,374,533 ÷ 73,594,147 shares outstanding)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$9.82</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Offering Price Per Share (100/95.50 of $9.82)<SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$10.28</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Redemption Proceeds Per Share </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$9.82</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Class B Shares:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net Asset Value Per Share ($1,091,630,138 ÷ 111,276,854 shares outstanding)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$9.81</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Offering Price Per Share </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$9.81</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Redemption Proceeds Per Share (94.50/100 of $9.81)<SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$9.27</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Class C Shares:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net Asset Value Per Share ($218,667,000 ÷ 22,288,727 shares outstanding)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$9.81</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Offering Price Per Share </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$9.81</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Redemption Proceeds Per Share (99.00/100 of $9.81)<SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$9.71</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
</TABLE>
<P>

1     See "What Do Shares Cost?" in the Prospectus.</P>
<P>

See Notes which are an integral part of the Financial Statements</P>
<H2>

Statement of Operations</H2>
<P>

YEAR ENDED MARCH 31, 2000</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Investment Income:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Dividends </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,651,034</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Interest</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>236,248,246</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL INCOME</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>245,899,280</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Expenses:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Investment adviser fee</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>17,390,487</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Administrative personnel and services fee</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,746,006</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Custodian fees</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>137,290</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Transfer and dividend disbursing agent fees and expenses</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,105,085</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Directors'/Trustees' fees</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>24,671</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Auditing fees</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>20,737</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Legal fees</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>25,589</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Portfolio accounting fees</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>236,821</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Distribution services fee--Class B Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,257,527</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Distribution services fee--Class C Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,859,431</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shareholder services fee--Class A Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,091,177</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shareholder services fee--Class B Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,085,842</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shareholder services fee--Class C Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>619,810</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Share registration costs</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>130,847</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Printing and postage</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>611,589</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Insurance premiums</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>5,172</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Taxes</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>181,195</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Miscellaneous</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>35,479</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL EXPENSES</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>39,564,755</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>206,334,525</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Realized and Unrealized Loss on Investments: </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net realized loss on investments</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(32,954,277</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net change in unrealized depreciation of investments</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(291,266,891</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net realized and unrealized loss on investments</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> (324,221,168</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Change in net assets resulting from operations</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(117,886,643</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="8">
<P>

<HR>
</TD>
</TR>
</TABLE>
<P>

See Notes which are an integral part of the Financial Statements</P>
<H2>

Statement of Changes in Net Assets</H2>
<P>

</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Year Ended March 31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> 2000</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> 1999</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Increase (Decrease) in Net Assets</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Operations:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>206,334,525</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>169,463,587</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net realized loss on investments ($(8,021,454) and $3,084,749, respectively, as
computed for federal tax purposes)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> (32,954,277</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> (3,007,024</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net change in unrealized depreciation </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(291,266,891</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(126,848,907</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  CHANGE IN NET ASSETS RESULTING FROM OPERATIONS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(117,886,643</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>39,607,656</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Distributions to Shareholders:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Distributions from net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Class A Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(77,804,443</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(66,152,957</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Class B Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(105,331,838</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(85,852,247</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Class C Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(21,139,465</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(16,122,978</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>  (204,275,746</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>  (168,128,182</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Share Transactions:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Proceeds from sale of shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>864,174,256</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>976,452,940</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net asset value of shares issued to shareholders in payment of distributions
declared</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>110,427,058</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>86,755,128</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Cost of shares redeemed</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(920,271,233</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(553,081,850</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>54,330,081</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>510,126,218</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Change in net assets</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(267,832,308</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>381,605,692</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Net Assets:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Beginning of period</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,300,503,979</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,918,898,287</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

End of period (including undistributed net investment income of $4,098,827 and
$2,040,048, respectively) </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,032,671,671</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2,300,503,979</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>

<HR>
</TD>
</TR>
</TABLE>
<P>

See Notes which are an integral part of the Financial Statements</P>
<H2>

Financial Highlights--Class A Shares</H2>
<P>

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Year Ended March 31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> 2000</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B><SUP>1</SUP> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> 1999</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>1998</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>1997</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>1996</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Net Asset Value, Beginning of Period</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.30</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$12.10</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.08</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$10.54</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Income From Investment Operations:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.99</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.01</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.00</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.04</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.00</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net realized and unrealized gain (loss) on investments</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(1.48</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.81)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> 0.79</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> 0.22</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> 0.55</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL FROM INVESTMENT OPERATIONS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.49</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.20</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.79</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.26</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.55</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Less Distributions:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Distributions from net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.99</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(1.00</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(1.00</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(1.03</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(1.00</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Distributions in excess of net investment income<SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.01</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL DISTRIBUTIONS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.99</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(1.00</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(1.00</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(1.03</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(1.01</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Net Asset Value, End of Period</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$  9.82</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.30</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$12.10</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.08</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Total Return<SUP>3</SUP></B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(4.65</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.94</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>16.48</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11.88</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>15.24</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Ratios to Average Net Assets:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Expenses</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.23</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.19</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.21</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.21</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.22</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9.35</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8.79</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8.46</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9.19</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9.07</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Expense waiver/reimbursement<SUP>4</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.01</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.03</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.06</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Supplemental Data:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net assets, end of period (000 omitted)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$722,375</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $829,982</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $748,294</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $599,736</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $530,203</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Portfolio turnover</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>26</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>28</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>58</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>55</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>53</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
</TABLE>
<P>

1     For the year ended March 31, 2000, the Fund was audited by Ernst & Young
LLP. Each of the previous years was audited by other auditors.</P>
<P>

2     Distributions are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. These distributions do not
represent a return of capital for federal income tax purposes.</P>
<P>

3     Based on net asset value, which does not reflect the sales charge or contingent
deferred sales charge, if applicable.</P>
<P>

4     This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.</P>
<P>

</P>
<H2>

Financial Highlights--Class B Shares</H2>
<P>

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Year Ended March 31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> 2000</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B><SUP>1</SUP> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> 1999</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>1998</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>1997</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>1996</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Net Asset Value, Beginning of Period</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.29</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$12.09</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.08</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$10.54</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Income From Investment Operations:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.92</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.96</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.95</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net realized and unrealized gain (loss) on investments</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> (1.48</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> (0.80</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> 0.78</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> 0.21</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> 0.51</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL FROM INVESTMENT OPERATIONS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.57</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.12</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.69</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.17</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.46</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Less Distributions:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Distributions from net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.92</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.94</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Distributions in excess of net investment income<SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.01</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL DISTRIBUTIONS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.92</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.94</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.92</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Net Asset Value, End of Period</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$  9.81</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.29</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$12.09</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.08</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Total Return<SUP>3</SUP></B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(5.37</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.18</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>15.52</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>10.99</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>14.31</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Ratios to Average Net Assets:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Expenses</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.98</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.94</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.97</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.99</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2.03</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8.60</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8.05</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7.76</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8.39</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8.29</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Expense waiver/reimbursement<SUP>4</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.01</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Supplemental Data:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net assets, end of period (000 omitted)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$1,091,630</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $1,239,882</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $980,125</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $513,169</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $238,055</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Portfolio turnover</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>26</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>28</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>58</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>55</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>53</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
</TABLE>
<P>

1     For the year ended March 31, 2000, the Fund was audited by Ernst & Young
LLP. Each of the previous years was audited by other auditors.</P>
<P>

2     Distributions are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. These distributions do not
represent a return of capital for federal income tax purposes.</P>
<P>

3     Based on net asset value, which does not reflect the sales charge or contingent
deferred sales charge, if applicable.</P>
<P>

4     This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.</P>
<P>

</P>
<H2>

Financial Highlights--Class C Shares</H2>
<P>

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Year Ended March 31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> 2000</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B><SUP>1</SUP> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> 1999</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>1998</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>1997</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>1996</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Net Asset Value, Beginning of Period</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.30</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$12.09</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.08</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$10.54</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Income From Investment Operations:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.92</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.92</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.95</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.92</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net realized and unrealized gain (loss) on investments</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> (1.50</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> (0.79</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> 0.78</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> 0.22</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT> 0.54</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL FROM INVESTMENT OPERATIONS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.58</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.13</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.69</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.17</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.46</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Less Distributions:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Distributions from net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.92</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.94</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Distributions in excess of net investment income<SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.01</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL DISTRIBUTIONS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.92</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.91</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.94</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(0.92</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Net Asset Value, End of Period</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$  9.81</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.30</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$12.09</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B>$11.08</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Total Return<SUP>3</SUP></B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(5.46</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.26</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>15.51</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11.00</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>14.35</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Ratios to Average Net Assets:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Expenses</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.98</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.94</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.97</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1.99</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>2.00</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8.61</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8.05</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>7.74</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8.38</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8.30</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Expense waiver/reimbursement<SUP>4</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>0.03</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<B>Supplemental Data:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Net assets, end of period (000 omitted)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$218,667</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $230,640</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $190,480</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $105,095</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=RIGHT> $57,422</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Portfolio turnover</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>26</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>28</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>58</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>55</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>53</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>

<HR>
</TD>
</TR>
</TABLE>
<P>

1     For the year ended March 31, 2000, the Fund was audited by Ernst & Young
LLP. Each of the previous years was audited by other auditors.</P>
<P>

2     Distributions are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. These distributions do not
represent a return of capital for federal income tax purposes.</P>
<P>

3     Based on net asset value, which does not reflect the sales charge or contingent
deferred sales charge, if applicable.</P>
<P>

4     This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.</P>
<P>

</P>
<H2>

Notes to Financial Statements</H2>
<P>

MARCH 31, 2000</P>
<H3>

ORGANIZATION</H3>
<P>

Federated High Income Bond Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end management investment company. The Fund offers three classes of shares:
Class A Shares, Class B Shares and Class C Shares. The investment objective of the
Fund is to seek high current income by investing primarily in a professionally
managed, diversified portfolio of fixed income securities.</P>
<H3>

SIGNIFICANT ACCOUNTING POLICIES</H3>
<P>

The following is a summary of significant accounting policies consistently followed
by the Fund in the preparation of its financial statements. These policies are in
conformity with generally accepted accounting principles.</P>
<H3>

Investment Valuation</H3>
<P>

Listed corporate bonds, other fixed income and asset backed securities, and unlisted
securities and private placement securities are generally valued at the mean of the
latest bid and asked price as furnished by an independent pricing service. Listed
equity securities are valued at the last sale price reported on a national securities
exchange. Short-term securities are valued at the prices provided by an independent
pricing service. However, short-term securities with remaining maturities of 60 days
or less at the time of purchase may be valued at amortized cost, which approximates
fair market value.</P>
<H3>

Repurchase Agreements</H3>
<P>

It is the policy of the Fund to require the custodian bank to take possession, to
have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral under
repurchase agreement transactions. Additionally, procedures have been established by
the Fund to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least equals the
repurchase price to be paid under the repurchase agreement.</P>
<P>

The Fund will only enter into repurchase agreements with banks and other recognized
financial institutions, such as broker/dealers, which are deemed by the Fund's
adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or
established by the Board of Directors (the "Directors"). Risks may arise
from the potential inability of counterparties to honor the terms of the repurchase
agreement. Accordingly, the Fund could receive less than the repurchase price on the
sale of collateral securities. The Fund, along with other affiliated investment
companies, may utilize a joint trading account for the purpose of entering into one
or more repurchase agreements.</P>
<H3>

Investment Income, Expenses and Distributions</H3>
<P>

Interest income and expenses are accrued daily. Bond premium and discount, if
applicable, are amortized as required by the Internal Revenue Code, as amended (the
"Code"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Non-cash dividends included in dividend income, if any, are
recorded at fair value. The Fund offers multiple classes of shares, which differ in
their respective distribution and service fees. All shareholders bear the common
expenses of the Fund based on average daily net assets of each class, without
distinction between share classes. Dividends are declared separately for each class.
No class has preferential dividend rights; differences in per share dividend rates
are generally due to differences in separate class expenses.</P>
<H3>

Federal Taxes</H3>
<P>

It is the Fund's policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of its income. Accordingly, no provision for federal tax is
necessary.</P>
<P>

At March 31, 2000, the Fund, for federal tax purposes, had a capital loss
carryforward of $19,397,710 which will reduce the Fund's taxable income arising from
future net realized gain on investments, if any, to the extent permitted by the Code,
and thus will reduce the amount of the distributions to shareholders which would
otherwise be necessary to relieve the Fund of any liability for federal tax.</P>
<P>

Pursuant to the Code, such capital loss carryforward will expire in March 2008.</P>
<P>

Additionally, net capital losses of $32,964,678 attributable to security transactions
incurred after October 31, 1999, are treated as arising on April 1, 2000, the first
day of the Fund's next taxable year.</P>
<H3>

When-Issued and Delayed Delivery Transactions</H3>
<P>

The Fund may engage in when-issued or delayed delivery transactions. The Fund records
when-issued securities on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are marked
to market daily and begin earning interest on the settlement date. Losses may occur
on these transactions due to changes in market conditions or the failure of
counterparties to perform under the contract.</P>
<H3>

Restricted Securities</H3>
<P>

Restricted securities are securities that may only be resold upon registration under
federal securities laws or in transactions exempt from such registration. In some
cases, the issuer of restricted securities has agreed to register such securities for
resale, at the issuer's expense either upon demand by the Fund or in connection with
another registered offering of the securities. Many restricted securities may be
resold in the secondary market in transactions exempt from registration. Such
restricted securities may be determined to be liquid under criteria established by
the Board of Directors. The Fund will not incur any registration costs upon such
resales. The Fund's restricted securities are valued at the price provided by dealers
in the secondary market or, if no market prices are available, at the fair value as
determined by the Fund's pricing committee.</P>
<H3>

Use of Estimates</H3>
<P>

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.</P>
<H3>

Other</H3>
<P>

Investment transactions are accounted for on a trade date basis.</P>
<H3>

CAPITAL STOCK</H3>
<P>

At March 31, 2000, par value shares ($0.01 per share) authorized were as follows:</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Share Class Name</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Number of Par <BR>
Value Capital <BR>
Stock Authorized</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Class A Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  4,000,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Class B Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  2,000,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Class C Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

  4,000,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  TOTAL</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

10,000,000,000</P>
</TD>
</TR>
</TABLE>
<P>

Transactions in capital stock were as follows:</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Year Ended March 31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="5">
<P>

<P ALIGN=CENTER><B>2000</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="5">
<P>

<P ALIGN=CENTER><B>1999</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Class A Shares:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> Shares</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=CENTER><B> Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> Shares</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=CENTER><B> Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shares sold</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>34,540,871</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>368,692,535</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>29,051,474</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>329,949,439</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shares issued to shareholders in payment of distributions declared</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,332,769</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>45,967,063</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,159,810</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>35,962,978</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shares redeemed</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(38,729,565</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(405,913,862</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(20,610,388</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(235,722,033</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="15">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>144,075</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>8,745,736</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>11,600,896</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>130,190,384</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="15">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Year Ended March 31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="5">
<P>

<P ALIGN=CENTER><B>2000</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="5">
<P>

<P ALIGN=CENTER><B>1999</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Class B Shares:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B>Shares</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=CENTER><B> Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> Shares</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=CENTER><B> Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shares sold</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>35,181,413</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>377,867,454</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>47,477,727</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>540,422,390</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shares issued to shareholders in payment of distributions declared</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,859,838</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>51,656,339</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,615,144</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>41,080,058</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shares redeemed</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(38,549,362</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(406,490,629</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(22,356,479</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(254,626,564</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="15">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTION </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,491,889</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>23,033,164</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>28,736,392</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>326,875,884</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="15">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Year Ended March 31</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="5">
<P>

<P ALIGN=CENTER><B>2000</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="5">
<P>

<P ALIGN=CENTER><B>1999</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Class C Shares:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> Shares</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=CENTER><B> Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> Shares</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>

<P ALIGN=CENTER><B> Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=CENTER><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shares sold</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>10,915,826</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>117,614,267</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,326,161</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>106,081,111</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shares issued to shareholders in payment of distributions declared</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,210,894</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>12,803,656</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>853,417</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>9,712,092</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Shares redeemed</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(10,254,521</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(107,866,742</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(5,511,870</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>(62,733,253</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT>)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="15">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTION </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>1,872,199</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>22,551,181</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>4,667,708</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>53,059,950</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="15">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

  NET CHANGE RESULTING FROM SHARE TRANSACTION</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>3,508,163</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>54,330,081</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>45,004,996</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>510,126,218</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>   </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="15">
<P>

<HR>
</TD>
</TR>
</TABLE>
<H3>

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES</H3>
<H3>

Investment Adviser Fee</H3>
<P>

Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment Adviser fee
equal to 0.75% of the Fund's average daily net assets.</P>
<H3>

Administrative Fee</H3>
<P>

Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee paid
to FServ is based on a scale that ranges from 0.15% to 0.075% of the average
aggregate daily net assets of all funds advised by subsidiaries of Federated
Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each
additional class.</P>
<H3>

Distribution Services Fee</H3>
<P>

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the Act. Under the terms of the Plan, the Fund will distribute Federated
Securities Corp. ("FSC"), the principal distributor, from the net assets of
the Fund to finance activities intended to result in the sale of the Fund's Class B
and Class C Shares. The Plan provides that the Fund may incur distribution expenses
according to the following schedule annually, to distribute FSC.</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Share Class Name</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=LEFT><B>Percentage of <BR>
Average Daily <BR>
Net Assets of Class</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Class B Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

0.75%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Class C Shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

0.75%</P>
</TD>
</TR>
</TABLE>
<H3>

Shareholder Services Fee</H3>
<P>

Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average
daily net assets of the Fund Shares for the period. The fee paid to FSSC is used to
finance certain services for shareholders and to maintain shareholder accounts. FSSC
may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate
this voluntary waiver at any time at its sole discretion.</P>
<H3>

Transfer and Dividend Disbursing Agent Fees and Expenses</H3>
<P>

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent
for the Fund. The fee paid to FSSC is based on the size, type, and number of accounts
and transactions made by shareholders.</P>
<H3>

Portfolio Accounting Fees</H3>
<P>

FServ maintains the Fund's accounting records for which it receives a fee. The fee is
based on the level of the Fund's average daily net assets for the period, plus
out-of-pocket expenses.</P>
<H3>

General</H3>
<P>

Certain of the Officers and Directors of the Fund are Officers and Directors or
Trustees of the above companies.</P>
<H3>

INVESTMENT TRANSACTIONS</H3>
<P>

Purchases and sales of investments, excluding short-term securities (and in-kind
contributions), for the year ended March 31, 2000, were as follows:</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>

Purchases</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

   </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>574,117,577</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="4">
<P>

<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>

Sales</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

 </P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>

<P ALIGN=RIGHT>663,309,650</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="4">
<P>

<HR>
</TD>
</TR>
</TABLE>
<H3>

CHANGE OF INDEPENDENT AUDITOR</H3>
<P>

On May 19, 1999, the Fund's Directors, upon the recommendation of the Audit Committee
of the Directors, requested and subsequently accepted the resignation of Arthur
Andersen LLP ("AA") as the Fund's independent auditors. AA's reports on the
Fund's financial statements for the fiscal years ended March 31, 1998 and March 31,
1999, contained no adverse opinion or disclaimer of opinion nor were they qualified
or modified as to uncertainty, audit scope or accounting principles. During the
Fund's fiscal years ended March 31, 1998 and March 31, 1999: (i) there were no
disagreements with AA on any matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedure, which disagreements, if not
resolved to the satisfaction of AA, would have caused it to make reference to the
subject matter of the disagreements in connection with its reports on the financial
statements for such years; and (ii) there were no reportable events of the kind
described in Item 304(a)(1)(v) of Regulation S-K under the Securities Act of 1934, as
amended.</P>
<P>

The Fund, by action of its Directors, upon the recommendation of the Audit Committee
of the Directors, has engaged Ernst & Young LLP ("E&Y") as the
independent auditors to audit the fund's financial statements for the fiscal year
ended March 31, 2000. During the Fund's fiscal years ended March 31, 1998 and March
31, 1999, neither the Fund nor anyone on its behalf has consulted E&Y on items
which: (i) concerned the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit opinion that might be
rendered on the Fund's financial statements; or (ii) concerned the subject of a
disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) of
reportable events (as described in paragraph (a)(1)(v) of said Item 304).</P>
<H2>

Report of Ernst & Young LLP, Independent Auditors</H2>
<P>

TO THE DIRECTORS AND SHAREHOLDERS OF <BR>
FEDERATED HIGH INCOME BOND FUND, INC.:</P>
<P>

We have audited the accompanying statement of assets and liabilities, including the
portfolio of investments, of Federated High Income Bond Fund, Inc. (the
"Fund"), as of March 31, 2000, and the related statement of operations,
statement of changes in net assets, and financial highlights for the year then ended.
These financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit. The statement of changes in
net assets for the year ended March 31, 1999, and the financial highlights for each
of the four years in the period then ended were audited by other auditors whose
report, dated May 20, 1999, expressed an unqualified opinion on that statement and
those financial highlights.</P>
<P>

We conducted our audit in accordance with auditing standards generally accepted in
the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned as of March 31, 2000, by
correspondence with the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.</P>
<P>

In our opinion, the financial statements and financial highlights referred to above
present fairly, in all material respects, the financial position of the Federated
High Income Bond Fund, Inc. at March 31, 2000, and the results of its operations, the
changes in its net assets, and the financial highlights for the year then ended, in
conformity with accounting principles generally accepted in the United States.
<P>

 <B>Ernst & Young LLP</B></P>
<P>

Boston, Massachusetts<BR>
May 15, 2000</P>
<H2>

Directors</H2>
<H3>

JOHN F. DONAHUE</H3>
<H3>

THOMAS G. BIGLEY</H3>
<H3>

JOHN T. CONROY, JR.</H3>
<H3>

NICHOLAS P. CONSTANTAKIS</H3>
<H3>

JOHN F. CUNNINGHAM</H3>
<H3>

J. CHRISTOPHER DONAHUE</H3>
<H3>

LAWRENCE D. ELLIS, M.D.</H3>
<H3>

PETER E. MADDEN</H3>
<H3>

CHARLES F. MANSFIELD, JR.</H3>
<H3>

JOHN E. MURRAY, JR., J.D., S.J.D.</H3>
<H3>

MARJORIE P. SMUTS</H3>
<H3>

JOHN S. WALSH</H3>
<H2>

Officers</H2>
<H3>

JOHN F. DONAHUE</H3>
<P>

Chairman</P>
<H3>

RICHARD B. FISHER</H3>
<P>

President</P>
<H3>

J. CHRISTOPHER DONAHUE</H3>
<P>

Executive Vice President</P>
<H3>

EDWARD C. GONZALES</H3>
<P>

Executive Vice President</P>
<H3>

JOHN W. MCGONIGLE</H3>
<P>

Executive Vice President and Secretary</P>
<H3>

RICHARD J. THOMAS</H3>
<P>

Treasurer</P>
<H3>

C. GRANT ANDERSON</H3>
<P>

Assistant Secretary</P>
<P>

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank,
and are not insured or guaranteed by the U.S. government, the Federal Deposit
Insurance Corporation, the Federal Reserve Board, or any other government agency.
Investment in mutual funds involves investment risk, including the possible loss of
principal.</P>
<P>

This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.</P>
<P>

<B>Federated<BR>World-Class Investment Manager</B></P><P><B>ANNUAL REPORT</B> </P>
<P>

AS OF MARCH 31, 2000</P>
<H2>

Federated High Income Bond Fund, Inc.</H2>
<P>

Established 1977</P>
<H3>

23RD ANNUAL REPORT</H3>
<P>

<B>Federated</B><BR>Federated High Income Bond Fund, Inc.<BR>Federated Investors
Funds<BR>5800 Corporate Drive<BR>Pittsburgh, PA
15237-7000<BR>1-800-341-7400<BR><B>www.federatedinvestors.com</B><BR>Federated
Securities Corp., Distributor </P>
<P>

Cusip 314195108<BR>
Cusip 314195207<BR>
Cusip 314195306</P>
<P>

8042507 (5/00)</P>
<P>

 Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated
Investors, Inc.</P>
<P>

</P>






GRAPHIC CHART APPENDIX FOR THE ANNUAL REPORT OF FEDERATED HIGH INCOME BOND FUND,
INC.

INITIAL INVESTMENT IN CLASS A SHARES

The graphic presentation here displayed consists of a boxed legend in the upper
left quadrant indicating the components of the corresponding mountain chart. The
color coded mountain chart is a visual representation of the narrative text
above it. The "x" axis reflects computation periods from 11/30/77 to 3/31/00.
The "y" axis is measured in increments of $50,000 ranging from $0 to $200,000
and indicates that the ending value of a hypothetical initial investment of
$23,000 (1,464 Shares) in the fund's Class A Shares, assuming the reinvestment
of capital gains and dividends, would have grown to $184,517 (18,790 Shares) on
3/31/00.

ONE STEP AT A TIME IN CLASS A SHARES

The graphic presentation here displayed consists of a boxed legend in the upper
left quadrant indicating the components of the corresponding mountain chart. The
color coded mountain chart is a visual representation of the narrative text
above it. The "x" axis reflects computation periods from 11/30/7 to 3/31/00. The
"y" axis is measured in increments of $20,000 ranging from $0 to $100,000 and
indicates that the ending value of hypothetical annual investments of $1,000 (64
Shares) in the fund's Class A Shares of the fund for 22 years, assuming the
reinvestment of capital gains and dividends, would have grown to $84,559 (8,611
Shares) on 3/31/00.

HYPOTHETICAL INVESTOR PROFILE IN CLASS A SHARES

The graphic presentation here displayed consists of a boxed legend in the upper
left quadrant indicating the components of the corresponding mountain chart. The
color coded mountain chart is a visual representation of the narrative text
above it. The "x" axis reflects computation periods from 3/31/90 to 3/31/00. The
"y" axis is measured in increments of $5,000 ranging from $0 to $20,000 and
indicates that the ending value of a hypothetical initial investment of $5,000
(1,481 Shares) in the Class A Shares of the fund, assuming the reinvestment of
capital gains and dividends, would have grown to $14,540 (1,481 Shares) on
3/31/00.

GROWTH OF A $10,00 INVESTMENT IN CLASS A SHARES

The graphic presentation displayed here consists of a line graph. The
corresponding components of the line graph are listed underneath. The Class A
Shares of the Federated High Income Bond Fund, Inc. (the "fund") is represented
by a solid line. The Lehman Brothers Single B Rated Index (the "LBSBRI") is
represented by a dotted line and the Lipper High Current Yield Funds Average
(the "LHCYFA") is represented by a broken line. The line graph is a visual
representation of a comparison of a change in value of a $10,000 hypothetical
investment in the Class A Shares of the fund, the LBSBRI and the LHCYFA. The "x"
axis reflects computation periods from 3/31/90 to 3/31/00. The "y" axis is
measured in increments of $6,000 ranging from $8,000 to $32,000 and indicates
the ending value of a hypothetical initial investment of $10,000 in the fund's
Class A Shares, the LBSBRI and the LHCYFA. The ending values were $29,075,
$27,302 and $26,529 respectively.

GROWTH OF A $10,00 INVESTMENT IN CLASS B SHARES

The graphic presentation displayed here consists of a line graph. The
corresponding components of the line graph are listed underneath. The Class B
Shares of the Federated High Income Bond Fund, Inc. (the "fund") is represented
by a solid line. The Lehman Brothers Single B Rated Index (the "LBSBRI") is
represented by a dotted line and the Lipper High Current Yield Funds Average
(the "LHCYFA") is represented by a broken line. The line graph is a visual
representation of a comparison of a change in value of a $10,000 hypothetical
investment in the Class B Shares of the fund, the LBSBRI and the LHCYFA. The "x"
axis reflects computation periods from 9/28/94 to 3/31/00. The "y" axis is
measured in increments of $1,500 ranging from $10,000 to $16,000 and indicates
the ending value of a hypothetical initial investment of $10,000 in the fund's
Class B Shares, the LBSBRI and the LHCYFA. The ending values were $14,560,
$15,050 and $15,173 respectively.

GROWTH OF A $10,00 INVESTMENT IN CLASS C SHARES

The graphic presentation displayed here consists of a line graph. The
corresponding components of the line graph are listed underneath. The Class C
Shares of the Federated High Income Bond Fund, Inc. (the "fund") is represented
by a solid line. The Lehman Brothers Single B Rated Index (the "LBSBRI") is
represented by a dotted line and the Lipper High Current Yield Funds Average
(the "LHCYFA") is represented by a broken line. The line graph is a visual
representation of a comparison of a change in value of a $10,000 hypothetical
investment in the Class C Shares of the fund, the LBSBRI and the LHCYFA. The "x"
axis reflects computation periods from 5/01/93 to 3/31/00. The "y" axis is
measured in increments of $2,000 ranging from $10,000 to $18,000 and indicates
the ending value of a hypothetical initial investment of $10,000 in the fund's
Class C Shares, the LBSBRI and the LHCYFA. The ending values were $15,643,
$16,494 and $16,341 respectively.



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