(2_FIDELITY_LOGOS)FIDELITY
HIGH YIELD TAX-FREE
PORTFOLIO
ANNUAL REPORT
NOVEMBER 30, 1993
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 7 The manager's review of fund
performance, strategy, and outlook.
INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the last six
months.
INVESTMENTS 11 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 43 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES TO FINANCIAL 47 Footnotes to the financial
STATEMENTS statements.
REPORT OF INDEPENDENT 50 The auditor's opinion.
ACCOUNTANTS
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Once the new year begins, many people start reviewing their finances and
calculating their tax bills. No one wants to pay more taxes than they have
to. But a recent survey of 500 U.S. households, conducted by Fidelity and
Yankelovich Partners, showed that few people have taken steps to reduce
their taxes under the new legislation. Many were not even aware that the
new tax laws were retroactive to January 1993.
Whether or not you're someone whose tax bill will increase as a result of
these changes, it may make sense to consider ways to keep more of what you
earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider adding to your tax-free investments, either municipal bonds
or municipal bond funds. Often these can provide higher after-tax yields
than comparable taxable investments. For example, if you're in the new 36%
federal income tax bracket and invest $10,000 in a taxable investment
yielding 7%, you'll pay $252 in federal taxes and receive $448 in income.
That same $10,000 invested in a tax-free bond fund yielding 5.5% would
allow you to keep $550 in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center.
Wishing you a prosperous new year,
Edward C. Johnson 3d, Chairman
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells bonds that have grown in value). You can also look at the fund's
income.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1993 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
High Yield Tax-Free 11.92% 62.80% 179.57%
Lehman Brothers Municipal Bond Index 11.09% 61.12% 182.71%
Average High Yield Municipal Bond Fund 11.00% 56.08% 226.94%
Consumer Price Index 2.68% 21.20% 44.07%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - one, five, or ten years. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, you would end up
with $1,050. You can compare these figures to the performance of the Lehman
Brothers Municipal Bond Index - a broad gauge of the municipal bond market.
To measure how the fund stacked up against its peers, you can look at the
average high yield municipal bond fund, which reflects the perform-ance of
31 high yield municipal bond funds tracked by Lipper Analytical Services.
Both benchmarks include reinvested dividends and capital gains, if any.
Comparing the fund's performance to the consumer price index helps show how
your fund did compared to inflation.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1993 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
High Yield Tax-Free 11.92% 10.24% 10.83%
Lehman Brothers Municipal Bond Index 11.09% 10.01% 10.95%
Average High Yield Municipal Bond Fund 11.00% 9.27% 11.37%
Consumer Price Index 2.68% 3.92% 3.72%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
$28,271
$27,957
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity High
Yield Tax-Free Portfolio on November 30, 1983. As the chart shows, by
November 30, 1993, the value of your investment would have grown to $27,957
- - a 179.57% increase on your initial investment. For comparison, look at
how the Lehman Brothers Municipal Bond index did over the same period. With
dividends reinvested, the same $10,000 would have grown to $28,271 - a
182.71% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
INCOME
YEARS ENDED NOVEMBER 30, 1993 1992 1991 1990 1989
Income return 6.33% 6.69% 7.11% 7.31% 7.69%
Capital gain returns 1.58% 1.28% 1.87% 3.09% 0.08%
Change in share price 4.01% 0.24% 0.64% -1.49% 4.83%
Total return 11.92% 8.21% 9.62% 8.91% 12.60%
Income returns, capital gain returns, and changes in share price are all
part of a bond fund's total return. An income return reflects the dividends
paid by the fund. A capital gain return reflects the amount paid by the
fund to shareholders based on the profits it has from selling bonds that
have grown in value. Both returns assume the dividends or gains are
reinvested. Changes in the fund's share price include changes in the prices
of the bonds owned by the fund.
DIVIDENDS AND YIELD
PERIODS ENDED NOVEMBER 30, 1993 PAST 30 PAST 6 PAST 1
DAYS MONTHS YEAR
Dividends per share n/a 37.99(cents) 76.36(cents)
Annualized dividend rate n/a 2.86% 5.84%
Annualized yield 5.34% n/a n/a
Tax-equivalent yield 8.34% n/a n/a
Dividends per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $13.27 over
the past six months and $13.07 over the past year, you can compare the
fund's income over these two periods. The 30-day annualized yield is a
standard formula for all funds based on the yields of the bonds in the
fund, averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period. It also
helps you compare funds from different companies on an equal basis. The
tax-equivalent yield shows what you would have to earn on a taxable
investment to equal the fund's tax-free yield, if you're in the 36% federal
tax bracket.
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Generally, interest rates fell
during the year ended November
30, 1993. As a result, bond prices
rose and most fixed-income
investors - including those in
tax-free bonds - enjoyed
attractive returns. The period
began amid expectations of
higher interest rates to come.
This was based on signs that the
economic recovery was finally
taking hold, as well as uncertainty
over the spending plans of the
president-elect. But as President
Clinton promised to tackle the
deficit and fight inflation, the bond
market signaled its approval. The
yield on the benchmark 30-year
Treasury bond declined steadily
and reached an historic low of
5.79% in mid-October. By the end
of the period, as inflation fears
returned, the 30-year bond was
yielding 6.30%. Two factors
affected tax-free bonds
specifically: on the positive side,
higher federal taxes - discussed
all year and approved in August
- - boosted demand. At the same
time, record new issuance kept
supplies high, which somewhat
dampened prices. Overall during
the period, tax-free bonds
performed well compared to other
fixed-income investments. The
Lehman Brothers Municipal Bond
Index - a broad measure of the
tax-free bond market - rose
11.09%. By comparison, the
Lehman Brothers Aggregate
Bond Index - which tracks
investment-grade taxable bonds
- - rose only 10.89%, due in part
to relatively poor performance by
mortgage-backed securities.
An interview with Anne Punzak,
Portfolio Manager of Fidelity
High Yield Tax-Free Portfolio
Q. ANNE, HOW DID THE FUND DO?
A. For the 12 months ended November 30, 1993, the fund had a total return
of 11.92%. That outpaced the average high yield municipal bond fund which
returned 11.00% over the same period, according to Lipper Analytical
Services.
Q. WHY DID THE FUND BEAT THE
AVERAGE?
A. It had a longer duration than many other funds of this type. That meant
its price could rise more as interest rates fell, which is what happened
over the past year. At the end of November the fund's duration was 8.1
years mainly due to its fairly large stake - nearly 45% on November 30 - in
bonds with maturities of 20 years or more. As interest rates fell, it paid
to invest in bonds with longer maturities since they appreciated more than
shorter-term bonds.
Q. SINCE TAKING OVER THE FUND IN OCTOBER, HAVE YOU MADE ANY CHANGES?
A. A few. I've begun to shift the focus in terms of particular state bonds
the fund owns. For example, recently I've started to increase the fund's
investments in California bonds because I think the state's economy may
have hit bottom. Also, I expect to gradually pare back to about half the
number of individual bonds the fund currently holds.
Q. MUNICIPAL RATING AGENCIES HAVE RECENTLY EXPRESSED CONCERN ABOUT
ELECTRIC UTILITY BONDS. ARE YOU WORRIED ABOUT HOW THE FUND'S 19% STAKE IN
THEM WILL BE AFFECTED?
A. No, because the rating agencies have singled out investor-owned electric
utilities as being at risk. Even though the fund has invested in some very
strong investor-owned utilities, I stick mainly to public electric
utilities. Investor-owned electric utilities are having to compete with one
another for large, industrial customers. But public electric utilities,
which serve primarily residential customers, tend to have their own
franchise and don't face much competition. I'm optimistic about public
electric utility bonds because they typically provide attractive yields and
should become scarce once refinancings are completed. That's because there
were major expansion programs during the '80s, which means there's little
need for future bond issues to help fund new plants. The scarcity could
help push prices up. I look for electric utilities with high ratings and
strong management teams.
Q. WHAT ABOUT THE FUND'S 27.9% STAKE IN HEALTH-CARE BONDS - WILL IT BE HURT
BY PRESIDENT CLINTON'S HEALTH-CARE REFORM PROPOSALS?
A. I don't believe so. In fact, I think that some hospitals could actually
benefit from health-care reform, especially those located in growing
suburban areas with strong HMO relationships that have done a good job
managing costs. Reform could also spur a number of consolidations within
the sector, which might offer some opportunities. For example, I'm most
interested in smaller, lower-rated hospitals that could benefit from being
taken over by a larger, higher-rated hospital. The acquired hospital's
bonds would assume the higher-rating of its acquirer. If the acquired
hospital's bonds were upgraded, the bonds could appreciate.
Q. HOW WOULD HIGH-YIELD BONDS WITHSTAND RISING INTEREST RATES?
A. I think they could do better than lower-yielding bonds for two reasons.
First, the return on a bond is based on its yield, or income return, and
its price return. When interest rates rise, bond prices tend to drop. But
because high-yield bonds offer high income return, they probably wouldn't
be as negatively affected as bonds that paid lower yields. Second, a period
of higher interest rates is often connected to bond holders' fears that the
economy is speeding up. Improvements in the economy, however, tend to
improve the credit quality of high yield bonds, which would be a positive
for prices. But I don't expect interest rates to rise, or for that matter,
fall much over the next six months.
Q. SO WHAT CAN INVESTORS EXPECT OVER THE NEXT 12 MONTHS?
A. Probably more modest returns. Over the past year bond investors have
enjoyed double digit returns. But going forward, I think they may see
returns more in line with historical averages. Even so, I expect tax-exempt
bonds to do better than taxable bonds, because the effects of higher taxes
could increase demand for municipals. Combine that with a dwindling supply
of tax-free bonds, and you have what's typically a positive environment for
municipals.
FUND FACTS
GOAL: to provide high current
income exempt from federal
income tax
START DATE: December 1, 1977
SIZE: as of November 30,
1993, over $2.1 billion
MANAGER: Anne Punzak,
since October 1, 1993;
manager, Fidelity Aggressive
Tax-Free Portfolio, since
January 1986; Fidelity Insured
Tax-Free Portfolio, since
October 1989; Spartan
Aggressive Municipal Bond
Fund, since April 1993;
Spartan Florida Tax-Free
Fund, since March 1992
(checkmark)
ANNE PUNZAK'S ECONOMIC
OUTLOOK:
"Although the U.S. economy
is still limping along, it's
healthier than it was a year
ago. Inflation, which when
rising can cause interest rates
to rise, appears to be in
check. Two early inflationary
signs - commodity prices
and wages - haven't shown
any real evidence of
rebounding. To me, that
signals that inflation could
hold steady for some time.
Even though economic
growth has picked up a little in
this country, inflation hasn't
risen. A low growth, low
inflation environment is
usually positive for bonds."
(bullet) Nearly half of the fund's
investments were concentrated
in two sectors with 28% in
health care bonds, and 19% in
electric utility bonds.
(bullet) Although the fund invests
primarily in long-term,
investment grade (Baa or
above) bonds, up to one-third
of its assets may be in lower
quality bonds. At the end of
November, about 7% of the
fund's assets were Ba-rated
or below.
DISTRIBUTION
The Board of Trustees of
Fidelity High Yield Tax-Free
Portfolio voted to pay on
December 20, 1993, to
shareholders of record at the
opening of business on
December 17, 1993, and on
January 3, 1994 to
shareholders of record at the
opening of business on
December 31, 1993, a
distribution of $.20 and $.30,
respectively, derived from
capital gains realized from
sales of portfolio securities.
INVESTMENT CHANGES
TOP FIVE STATES AS OF NOVEMBER 30, 1993
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO
Massachusetts 10.4 12.2
Colorado 9.8 9.6
Texas 5.2 4.5
Pennsylvania 4.9 3.2
Michigan 4.5 4.2
TOP FIVE SECTORS AS OF NOVEMBER 30, 1993
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO
Health Care 27.9 27.3
Electric Revenue 19.1 20.5
General Obligation 10.7 11.4
Industrial Development 7.1 6.2
Special Tax 6.9 4.1
AVERAGE YEARS TO MATURITY AS OF NOVEMBER 30, 1993
6 MONTHS AGO
Years 19.3 19.5
AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL OF THE
BONDS IN THE FUND IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF NOVEMBER 30, 1993
6 MONTHS AGO
Years 8.1 7.8
DURATION SHOWS HOW MUCH A BOND'S PRICE FLUCTUATES WITH CHANGES IN INTEREST
RATES. IF RATES RISE 1%, FOR EXAMPLE, THE SHARE PRICE OF A FUND WITH A
FIVE-YEAR DURATION WILL FALL 5%.
QUALITY DIVERSIFICATION AS OF NOVEMBER 30, 1993
(MOODY'S RATINGS)
Aaa 26.2%
Aa, A 35.6%
Baa 16.4%
Ba or B 7.2%
Non-rated 11.9%
Row: 1, Col: 1, Value: 11.9
Row: 1, Col: 2, Value: 7.2
Row: 1, Col: 3, Value: 16.4
Row: 1, Col: 4, Value: 35.6
Row: 1, Col: 5, Value: 26.2
THIS CHART EXCLUDES SHORT-TERM INVESTMENTS. WHERE MOODY'S RATINGS ARE NOT
AVAILABLE, WE HAVE USED S&P RATINGS.
INVESTMENTS NOVEMBER 30, 1993
Showing Percentage of Total Value of Investments in Securities
MUNICIPAL BONDS - 97.2 %
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
ALABAMA - 1.6%
Alabama Bldg. Renovation Fin. Auth. Rev.
7.45% 9/1/11 A $ 3,000 $ 3,424 010237AU
Alabama Mental Health Fin. Auth. Spl. Tax
7.375% 5/1/09 A 3,000 3,360 010316AV
Alabama Spl. Care Facs. Fing. Auth. Mobile
Hosp. Rev. (Daughters of Charity Providence)
10.125% 6/1/15 Aa 700 778 01040TAC
Birmingham Jefferson Civic Ctr. Auth. Spl. Tax
(Cap. Outlay) 7.25% 1/1/12 A 5,875 6,411 091156EY
Cullman Med. Park South Med. Clinic Board
Rev. (Cullman Reg'l. Med. Ctr.) Series A:
6.50% 2/15/13 Baa 4,000 4,040 230043AL
6.50% 2/15/23 Baa 7,000 7,044 230043AM
McIntosh Ind. Dev. Board Poll. Cont. Rev.
(Ciba-Geigy Corp.) 6% 8/1/07 - 2,665 2,655 581177AB
Shelby County Series S, 7.40% 8/1/07 - 5,000 5,393 821515EG
33,105
ALASKA - 0.5%
North Slope Borough Rfdg.:
Unltd. Tax Series G, 8.35% 6/30/98 Baa1 4,000 4,595 662523NR
Series B, 0% 1/1/03, (MBIA Insured) Aaa 9,000 5,715 662523RR
Series C, 10.20% 6/30/94 Baa1 475 492 662523LP
10,802
ARIZONA - 2.9%
Arizona Univ. Med. Ctr. Corp. Hosp. Rev. Rfdg.
5% 7/1/13, (MBIA Insured) Aaa 1,000 949
Chandler Cap. Appreciation Rfdg.:
0% 7/1/04, (FGIC Insured) Aaa 5,700 3,320 158843KK
0% 7/1/05, (FGIC Insured) Aaa 5,700 3,121 158843KL
0% 7/1/06, (FGIC Insured) Aaa 5,700 2,928 158843KM
0% 7/1/07, (FGIC Insured) Aaa 5,700 2,757 158843KN
0% 7/1/08, (FGIC Insured) Aaa 1,700 774 158843KP
0% 7/1/09, (FGIC Insured) Aaa 2,000 855 158843KQ
Maricopa County Ind. Dev. Auth. Hosp. Facs.
Rev. Rfdg. (Samaritan Health Svcs.) Series A,
7% 12/1/16, (MBIA Insured) Aaa 2,000 2,380 566820GU
Maricopa County Poll. Cont. Corp. Poll. Cont.
Rev. (Pub. Svc. Co. New Mexico - Palo Verde)
7.75% 11/1/09 Ba2 7,165 7,756 566854AG
Phoenix Rfdg. Series A, 5.25% 7/1/12 Aa 8,000 7,800 718814CZ
Phoenix Str. & Hwy. User Rev. Rfdg. (Jr. Lien)
Series A:
0% 7/1/12, (FGIC Insured) Aaa 5,000 1,719 718867MV
0% 7/1/13, (FGIC Insured) Aaa 4,850 1,558 718867MW
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
ARIZONA - CONTINUED
Pima County Ind. Dev. Auth. Ind. Rev. Rfdg.
(Lease Oblig.) (Irvington Proj. Tucson Elec. Pwr.
Co.) Series A, 7.25% 7/15/10, (FSA Insured) Aaa $ 5,000 $ 5,581 721774DA
Pima County Metropolitan Domestic Wtr. Impt.
Dist. Spl. Assessment Wtr. Rev. 6.20% 1/1/09,
(FGIC Insured) Aaa 1,260 1,331 72178EAR
Salt River Proj. Agric. Impt. Pwr. & Dist. Elec. Sys.
Rev. Series A, 5.70% 1/1/12 Aa 8,775 8,775 795747CP
Tucson & Pima County Ind. Dev. Auth. Single
Family Mtg. Rev. (Verex Mtg. Assurance, Inc.)
9.375% 2/1/14 BB- 4,145 4,285 898700DH
Tucson Wtr. Rev. Rfdg.:
Series A, 5.75% 7/1/18 A1 2,400 2,436 898796YL
5.50% 7/1/14 A1 3,450 3,403 898796ZA
61,728
ARKANSAS - 1.4%
Arkansas Dev. Fin. Auth. Rev. (Cap. Asset)
Series B, 7.10% 3/1/08 A 4,500 4,995 04108REQ
Arkansas Dev. Fin. Auth. Health Care Facs. Rev.
Rfdg. (Sisters Mercy Health Sys.) Series A,
5% 6/1/13 Aa 3,000 2,835 04108VAS
Arkansas Dev. Fin. Auth. Wastewtr. Rev.
(Revolving Loan Fund) Series A, 7% 6/1/14,
(MBIA Insured) Aaa 2,900 3,357 041086BW
Arkansas Univ. Rev. (Trustee) 7.20% 12/1/10 A 1,250 1,422 914083BT
Baxter County Hosp. Rev. Rfdg. & Impt.
7.50% 9/1/21 Baa 4,000 4,385 071808EY
Conway Elec. Sys. Rev. 5.70% 8/1/09 A 3,000 3,071 212582BH
Fayetteville Pub. Facs. Board Rev. Rfdg.
(Butterfield Trail Village Proj.) Series A,
9.50% 9/1/14 - 2,200 2,393 312670AK
North Little Rock Elec. Rev. Rfdg. Series A:
6.50% 7/1/10, (MBIA Insured) Aaa 3,840 4,382 660546DV
6.50% 7/1/15, (MBIA Insured) Aaa 1,000 1,156 660546DX
Pulaski County Health Facs. Board Rev. Rfdg.
(Sisters Charity Nazareth Corp.)
6.05% 11/1/09, (MBIA Insured) Aaa 2,290 2,416 74539QBS
Pulaski County Hosp. Rev. Rfdg. (Arkansas
Children's Hosp. Proj.) 10.125% 3/1/15 A- 800 859 745392BJ
31,271
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
CALIFORNIA - 2.8%
California Gen. Oblig. 4.75%, 9/1/23 Aa $ 5,000 $ 4,394 130627BZ
California Pub. Wks. Board Lease Rev. (California
Univ. Proj.) Series A, 5.50% 6/1/10 A1 2,500 2,488 13068GRE
California Statewide Cmmty. Dev. Auth. Rev.
Ctfs. of Prtn. 5.80%, 5/1/13 A+ 5,000 4,994 130909GV
Culver City Redev. Fing. Auth. Rev. Rfdg. Tax
Allocation 4.60%, 11/1/20, (AMBAC Insured) Aaa 5,000 4,350 230341BM
Del Norte County Pub. Wks. Rev. Rfdg. (Dept.
of Corrections) 5.125%, 12/1/08 A1 3,500 3,399 13068GSY
Duarte Redev. Agcy. Tax Allocation (Huntington
Drive-PH 2 Redev. Proj.) 9.25% 11/1/10,
(Pre-Refunded to 11/1/95 @ 102) - 1,380 1,551 263590BQ
Industry Urban Ind. Dev. Agcy. Rfdg.
(Civic Recreational Proj. #1) Series A,
7.375% 5/1/12 - 1,000 1,083 456567MG
Los Angeles County Metropolitan Trans. Auth.
(Sales Tax Rev. Sr.) Series B, 4.75% 7/1/13,
(AMBAC Insured) Aaa 5,000 4,588 544712BP
Metropolitan Wtr. Dist. Southern California
Wtrwks. 5.50% 7/1/13 Aa 9,000 8,910 592663LH
Northern Pwr. Agcy. Pub. Pwr. Rev. Rfdg.
(Geothermal Proj. #3) Series A,
5.80% 7/1/09 A 1,000 1,025 664843RZ
Orange County Dev. Agcy. Tax Allocation
(Santa Ana Heights Proj.) 6% 9/1/15 Baa1 2,800 2,779 684246CA
Oxnard Fing. Auth. Wastewtr. Rev. Rfdg.
5.50% 6/1/14, (FGIC Insured) Aaa 1,250 1,239 691874AS
Sacramento City Fing. Auth. (Cap. Appreciation
Tax Allocation Comb. Proj.) Series B,
0% 11/1/06, (MBIA Insured) Aaa 2,810 1,422 785849BG
San Joaquin Hills Trans. Corridor Agcy. Toll.
Road Rev. (Sr. Lien):
0% 1/1/17 - 3,500 700 798111AU
0% 1/1/19 - 20,000 3,475 798111AH
Sequoia Hosp. Dist. Rev. 5.375% 8/15/23 A 5,000 4,594 817393CA
University of California Rev. Rfdg. (Multiple Purp.
Projs.) Series C:
5.125% 9/1/13, (AMBAC Insured) Aaa 2,000 1,904 914113SM
5.25% 9/1/16, (AMBAC Insured) Aaa 6,500 6,272 914113SP
59,167
COLORADO - 9.8%
Adams County Poll. Cont. Rev. Rfdg. (Pub. Svc.
Co. Colorado Proj.) Series A, 5.875% 4/1/14,
(MBIA Insured) Aaa 2,750 2,857 005620AL
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
COLORADO - CONTINUED
Arvada Sales & Use Tax Rev. Rfdg. & Impt.
6.25% 12/1/12, (FGIC Insured) Aaa $ 4,000 $ 4,255 043229AV
Auraria Higher Ed. Ctr. Rev. (Student Fee)
Series B, 6.50% 11/1/16, (AMBAC Insured) Aaa 2,500 2,713 051533HX
Aurora Wtr. Rfdg. 4.75% 11/1/14 A1 3,540 3,266 051555T4
Avon Metropolitan Dist. Gen. Oblig. Rfdg. &
Impt. (Colorado Eagle Co.) Series 1990:
8% 11/1/00 - 1,295 1,429 054028EN
8.30% 11/1/10 - 2,505 2,809 054028EP
Boulder Larimer & St. Weld Counties Vrain Valley
School Dist. Rfdg. 6% 12/15/10,
(MBIA Insured) Aaa 1,500 1,581 101565RC
Colorado Board Agric. Rev. Rfdg. & Impt.
(Colorado Univ. Auxiliary Facs.)
6.40% 3/1/11, (MBIA Insured) Aaa 2,000 2,173 196695GW
Colorado Health Facs. Auth. Rev.:
(Commty. Provider Pooled Loan) Series A,
7.25% 7/15/17, (Cap. Guaranty Insured) Aaa 1,878 2,155 196473E8
(Hosp. North Colorado Med. Ctr.):
5.95% 5/15/12, (MBIA Insured) Aaa 1,400 1,482 196473Y8
6% 5/15/20, (MBIA Insured) Aaa 3,000 3,150 196473Y9
(Hosp. - Swedish Med. Ctr.) Series A:
7.25% 10/1/08 A 7,200 7,902 196473ZL
7.50% 10/1/20 A 10,000 11,100 196473ZM
6.80% 1/1/23 A 7,000 7,525 196473N3
(PSL Health Care Sys. Proj.) Series A:
6.75% 2/15/13 Baa 7,750 7,973 1964732C
7.25% 2/15/16, (FSA Insured) Aaa 8,000 9,180 196473C2
8.50% 2/15/21 Baa 6,250 7,148 196473C5
6.875% 2/15/23 Baa 500 518 1964732D
(Rocky Mountain Adventist) 6.625% 2/1/22 Baa 16,500 16,748 1964732M
(Sisters of Charity Health Care Sys.) Series A,
6.25% 5/15/12, (AMBAC Insured) Aaa 2,000 2,218 196473W3
Colorado Postsecondary Edl. Facs. Auth. Rev.
Rfdg. (Denver Univ.) 6.25% 3/1/12,
(Connie Lee Insured) AAA 2,700 2,842 196547DE
Colorado Springs Arpt. Rev. (Cap. Appreciation)
Series C:
0% 1/1/02 BBB 1,550 961 196612AZ
0% 1/1/04 BBB 1,530 826 196612BD
0% 1/1/09 BBB 1,655 627 196612BN
0% 1/1/10 BBB 1,500 529 196612BP
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
COLORADO - CONTINUED
Colorado Univ. Hosp. Auth. Hosp. Rev. Series A:
6.25% 11/15/12, (AMBAC Insured) Aaa $ 4,000 $ 4,314 914173AL
6.40% 11/15/22, (AMBAC Insured) Aaa 2,000 2,170 914173AM
Colorado Univ. Rev.:
(Biomedical Research Bldg. Proj.) 7% 6/1/09 A+ 5,725 6,440 914182E2
(Research Bldg. Revolving Fund)
6.125% 6/1/12, (MBIA Insured) Aaa 1,330 1,410 914182W4
Colorado Wtr. Resources Pwr. Dev. Auth. Clean
Wtr. Rev. Series A, 7% 9/1/12 Aa 2,500 2,822 196797BY
Denver City & County Arpt. Rev. Series A:
7.50% 11/15/06 Baa1 6,500 7,353 249181JQ
7.50% 11/15/12 Baa1 10,000 11,163 249181JR
7.25% 11/15/25 Baa1 11,300 12,374 249181JS
Denver City & County Ind. Dev. Rev. (Denver
Univ. Prog.) Series 1991, 7.50% 3/1/11 BBB 1,450 1,626 249188CZ
Fort Collins Storm Drain Rev. 6.625% 12/1/11 A1 1,000 1,081 347128BB
Fraser Ind. Dev. Rev. (Safeway Stores, Inc. Proj.)
10.25% 12/1/03 BB- 1,120 1,152 355472AG
Jefferson County Ctfs. of Prtn.:
6.65% 12/1/08, (MBIA Insured) Aaa 3,000 3,323 472723DQ
7.125% 12/1/10, (MBIA Insured) Aaa 250 286 472723CW
Jefferson County School Dist. #R-001,
6% 12/15/12, (AMBAC Insured) Aaa 8,490 8,968 472736XB
Jefferson County Single Family Mtg. Rev.
Series 1991 A, 8.875% 10/1/13,
(MBIA Insured) Aaa 710 771 472744BW
La Plata County School Dist. #9-R Durango:
6.55% 11/1/13, (FGIC Insured) Aaa 2,000 2,205 503768EW
6.60% 11/1/17, (FGIC Insured) Aaa 1,600 1,764 503768EX
Lafayette Wtr. Rfdg. & Impt. Series B,
6.25% 12/1/12, (AMBAC Insured) Aaa 2,000 2,155 506048GE
Larimer County School Dist. #R-1 Poudre Impt.
Unltd. Tax:
6.50% 12/15/11 A 5,000 5,438 517138PA
6.15% 12/15/16 A 2,500 2,625 517138PB
Logan County Health Care Facs. Rev. (Western
Health Network) 5.75% 1/1/08,
(MBIA Insured) Aaa 500 523 540627AX
Morgan County Co. Poll. Cont. Rev. Rfdg.
(1st Mtg. Pub. Svc. Co.) Series A,
5.50% 6/1/12, (MBIA Insured) Aaa 3,750 3,783 617100AH
Mountain Village Metropolitan Dist. San.
Miguel County Rfdg. 8.10% 12/1/11 - 2,000 2,200 624506CN
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
COLORADO - CONTINUED
Platte River Pwr. Auth. Pwr. Rev. Rfdg. Series BB,
6.125% 6/1/14 Aa $ 1,875 $ 1,969 727818BK
Poudre Valley Hosp. Dist. Hosp. Rev.
6.625% 12/1/11, (AMBAC Insured) Aaa 4,500 4,978 738581AT
Reg'l. Trans. Dist. Sales Tax Rev. Rfdg. & Impt.
6.25% 11/1/12, (FGIC Insured) Aaa 2,955 3,172 759136DL
South Suburban Park & Recreation Dist. Rfdg. &
Impt. Unltd. Tax 6.25% 2/15/13,
(AMBAC Insured) Aaa 2,000 2,142 840480CC
Thorton Sales & Use Tax Rev. Series A,
6.25% 9/1/12, (FGIC Insured) Aaa 3,000 3,228 885285DV
Vail Sales Tax Rev. Rfdg. & Impt. Series B,
6.125% 12/1/12, (MBIA Insured) Aaa 1,185 1,251 918789BU
206,653
CONNECTICUT - 0.7%
Connecticut Dev. Auth. Health Care Rfdg.
(Duncaster, Inc. Proj.) 6.75% 9/1/15 Aa3 1,225 1,323 207901BD
Connecticut Dev. Auth. Solid Waste & Elec. Rev.
(Ogden Martin Sys. Bristol, Inc.)
10% 7/1/14 BBB+ 6,000 6,660 207908AR
Connecticut Health & Edl. Facs. Auth. Rev.
(New Britain Mem. Hosp.) Series A,
7.50% 7/1/06 BBB- 5,000 5,400 207742PC
Norwalk Hsg. Auth. Mtg. Rev. (Monterey Village)
Series 1985 B, Section 8, 9% 11/1/99 BBB 2,195 2,299 668868BE
15,682
DELAWARE - 0.1%
Delaware Health Facs. Auth. Rev. Rfdg.
(Kent Gen. Hosp. Proj.) 5.25% 7/1/13,
(MBIA Insured) Aaa 3,000 2,850 246388GZ
DISTRICT OF COLUMBIA - 0.3%
District of Columbia Hosp. Rev. (Hosp. for
Sick Children) Series A, 8.875% 1/1/21 - 6,000 6,720 254764BS
FLORIDA - 2.9%
Dade County Health Facs. Auth. Hosp. Rev.
(South Shore Hosp. & Med. Ctr.) Series A,
7.60% 8/1/24, (FHA Guaranteed) AA+ 905 1,008 233904KP
Hillsborough County Port Dist. Port Rev.
Series 1984 A, 11% 6/1/94 785 797 432326CU
Jacksonville Health Facs. Auth. Hosp. Rev. Rfdg.
(Methodist Hosp. Proj.) Series A, 8% 10/1/06 - 2,250 2,199 469404HE
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
FLORIDA - CONTINUED
Jacksonville Health Facs. Ind. Dev. Rev. (Cypress
Village Proj.) (Nat'l. Benevolent Assoc.)
7% 12/1/22 Baa1 $ 2,000 $ 2,132 46940HBA
Tampa Cap. Impt. Prog. Rev.:
Series A, 8.25% 10/1/18 Aa 10,000 11,088 875148AL
Series B, 8.375% 10/1/18 A- 40,000 44,250 875148AV
61,474
GEORGIA - 0.8%
Atlanta Arpt. Facs. Rev. 6.30%, 1/1/07 A 2,500 2,525 047793AM
Atlanta Board of Ed. Ctfs. of Prtn. Rfdg.
2.85% 6/1/94, (FGIC Insured) Aaa 2,705 2,702 047801AT
Atlanta Wtr. & Swr. Auth. Rev. 4.50% 1/1/18 Aa 9,000 7,886 047861KH
Brunswick Wtr. & Swr. Rev. Rfdg. & Impt.
6.10% 10/1/19, (MBIA Insured) Aaa 1,500 1,622 117151FF
Savannah Port Auth. Poll. Cont. Rev. (Continental
Group, Inc. Proj.) 9.875% 3/1/00 Ba2 2,000 2,025 804863AW
16,760
GUAM - 0.1%
Guam Gov't. Ltd. Oblig. Hwy. Ltd. Tax Series A,
6.25% 5/1/07, (Cap. Guaranty Insured) Aaa 1,500 1,624 40065DBC
HAWAII - 0.4%
Hawaii Gen. Oblig. Rfdg. Series CI,
4.75% 11/1/09 Aa 7,000 6,554 419779NU
Honolulu City & County Rfdg. & Impt. Series B,
5.50% 10/1/11 Aa 3,000 3,030 438669PT
9,584
IDAHO - 0.9%
Boise City Independent School Dist. Rev.
5.40% 7/30/14 (AMBAC Insured) Aaa 3,590 3,577 097437KG
Boise Univ. Rev. Rfdg. & Impt. (Student Union &
Hsg. Sys.):
6.30% 4/1/15, (MBIA Insured) Aaa 800 860 097464JX
5.25% 4/1/17, (MBIA Insured) Aaa 1,000 970 097464KN
Boise Urban Renewal Parking Agcy. Rev. (Tax
Increment) Series A, B, C, 8.125% 9/1/15 A 2,600 2,863 097463CE
Idaho Falls Elec. Rfdg.:
0% 4/1/06, (FGIC Insured) Aaa 4,000 2,070 451182FC
0% 4/1/12, (FGIC Insured) Aaa 1,100 393 451182FJ
0% 4/1/13, (FGIC Insured) Aaa 7,150 2,422 451182FK
Idaho Health Facs. Auth. Rev. Rfdg. (Magic
Valley Reg'l. Med. Ctr.) 5.50% 12/1/07,
(AMBAC Insured) Aaa 3,525 3,622 451295LH
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
IDAHO - CONTINUED
Idaho Univ. Rev. (Student Facs. Fee)
6.30% 4/1/10 A $ 2,500 $ 2,659 451470HB
19,436
ILLINOIS - 3.8%
Chicago O'Hare Int'l. Arpt. Rev. Rfdg. (Sr. Lien)
Series A, 5% 1/1/12 A1 10,000 9,363 167592LP
Chicago O'Hare Int'l. Arpt. Spl. Facs. Rev. Rfdg.:
(Delta Airlines, Inc.) 6.45% 5/1/18 Ba3 1,750 1,750 167590BX
(United Airlines, Inc.) Series 1984 B,
8.85% 5/1/18 Baa1 655 760 167590BN
Chicago Rfdg. Series B, 5% 1/1/11,
(AMBAC Insured) Aaa 2,000 1,895 1674833W
Chicago Single Family Mtg. Rev.
7.125% 7/1/09, (Escrowed to Maturity) (b) A1 2,755 2,765 167685AW
Cook County Series A, 5.375% 11/15/12,
(MBIA Insured) Aaa 2,500 2,419 213183WR
Grayslake Multi-Family Hsg. Rev. (Country Squire
Apts.) 9.50% 12/1/25, (FHA Guaranteed) AA- 2,430 2,503 389649BD
Illinois Health Facs. Auth. Rev:
Rfdg. (Lutheran Gen. Health Sys.) Series C:
7% 4/1/14 A 1,500 1,674 45200KXP
6% 4/1/18 A 3,000 3,000 45200KXT
Rfdg. (OSF Healthcare Sys.) 6% 11/15/13 A1 5,000 5,013 45200KA2
(Hinsdale Hosp.) Series C, 9.50% 11/15/19,
(Pre-Refunded to 11/15/00 @ 102) (b) Baa1 3,220 4,093 45200KSU
(Mem. Hosp.) :
6.875% 5/1/00 BBB 1,700 1,768 45200KNY
7.125% 5/1/10 BBB 4,000 4,210 45200KNZ
7.25% 5/1/22 BBB 4,000 4,215 45200KQD
Lake County Forest Preserve Dist. Unltd. Tax (Cap.
Appreciation):
0% 12/1/07 Aa 10,440 4,881 508354FR
0% 12/1/08 Aa 12,505 5,487 508354FS
Metropolitan Pier & Exposition Auth. Dedicated
Tax Rev. (McCormick Place Expansion Proj.):
Series A:
0% 6/15/07, (FGIC Insured) (c) Aaa 4,800 4,236
0% 6/15/09, (FGIC Insured) Aaa 18,175 7,520 592247CQ
0% 6/15/10, (FGIC Insured) Aaa 5,000 1,938 592247CR
0% 6/15/16, (FGIC Insured) (c) Aaa 11,820 7,445 592247CU
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
ILLINOIS - CONTINUED
Northwest Suburban Muni. Joint Action Wtr.
Agcy. Wtr. Supply Sys. Rev. Series A,
5.90% 5/1/15, (MBIA Insured) Aaa $ 2,000 $ 2,060 667806FG
78,995
INDIANA - 1.1%
Fishers Econ. Dev. Rev. (1st Mtg. United Student
Funds, Inc.) 8.375% 9/1/14 - 1,250 1,330 338035BK
Indiana Univ. Rev. Rfdg. (Student Fee) Series H,
0% 8/1/09, (AMBAC Insured) Aaa 17,000 6,906 455167SB
Indianapolis Econ. Dev. Rev. Rfdg. & Impt.
(Nat'l. Benevolent Assoc.) 7.625% 10/1/22 Baa1 3,000 3,266 455261PQ
Indianapolis Local Pub. Impt. Bond Bank Rfdg.
Series D:
6.75% 2/1/14 A+ 4,000 4,440 455280QP
6.75% 2/1/20 A+ 6,000 6,398 455280QV
22,340
KANSAS - 0.4%
Kansas City Util. Sys. Rev. Rfdg. & Impt.
(Cap. Appreciation) 0% 9/1/10,
(AMBAC Insured) Aaa 6,690 2,576 484790FS
Kansas Dept. Trans. Hwy. Rev. Series A,
6% 9/1/12 Aa 3,000 3,128 485424BH
Wichita Hosp. Rev. Rfdg. & Impt. (St. Francis II
Reg'l. Med. Ctr.) Series A3, 6.25% 10/1/10,
(MBIA Insured) Aaa 2,500 2,712 967250NJ
8,416
KENTUCKY - 1.8%
Boone County Poll. Cont. Rev. Rfdg. (Dayton Pwr.
& Lt. Co.) Series A, 6.50% 11/15/22 A2 2,000 2,145 098792AG
Danville Multi-City Lease Rev. (Shelbyville)
Series H, 6.70% 7/1/11, (MBIA Insured) Aaa 2,430 2,712 236672GV
Henderson Elec. Lt. & Pwr. Rev. Rfdg.
5.70% 3/1/03 A 2,050 2,055 425092DF
Hopkins County Hosp. Rev. (Trover Clinic
Foundation, Inc.) 6.625% 11/15/11,
(MBIA Insured) Aaa 2,000 2,190 439748CK
Jefferson County Cap. Projs. Corp. Rev. (Muni.
Multiple Rfdg. Lease) Series A, 0% 8/15/11 A1 5,365 1,838 473020GW
Jefferson County Health Facs. Rev. (Jewish Hosp.
Healthcare Svcs., Inc.) 6.50% 5/1/15,
(AMBAC Insured) Aaa 6,500 7,085 472902DH
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
KENTUCKY - CONTINUED
Kentucky Econ. Dev. Fin. Auth. Med. Ctr. Rev.
Rfdg. & Impt. (Ashland Hosp. Corp.)
Series A, 6.125% 2/1/12,
(Cap. Guaranty Insured) Aaa $ 1,200 $ 1,248 491269AN
Kentucky Tpk. Auth. Econ. Dev. Road Rev. Rfdg.
(Revitalization Proj.) 5.50% 7/1/09,
(AMBAC Insured) Aaa 2,200 2,239 491552GN
Louisville & Jefferson County Metropolitan Swr.
Dist. Rev. Series A, 5.25% 5/15/12,
(MBIA Insured) Aaa 1,500 1,464 546587CH
Louisville Univ. Rev. Rfdg. (Consolidated Edl.
Bldgs.) Series I:
5.40% 5/1/08 A1 1,965 1,958 914391PU
5.40% 5/1/09 A1 2,360 2,328 914391PV
5.40% 5/1/10 A1 1,565 1,542 914391PW
Owensboro Elec. Lt. & Pwr. Rev. Series B,
0% 1/1/07, (AMBAC Insured) Aaa 10,000 4,988 691021GJ
Peery County Econ. Dev. Rev. Rfdg. (The Kroger
Co. Proj.) 6.60% 5/1/02 Ba3 2,435 2,499 714542AM
Winchester Ind. Bldg. Rev. Rfdg. (Kroger Co.)
7.75% 7/1/12 Ba3 1,000 1,100 972856DZ
37,391
LOUISIANA - 2.3%
Greater New Orleans Expressway Commission
Expressway Rev. Rfdg. 6% 11/1/16 A 5,000 5,125 392244BG
Lake Charles Hbr. & Term. Dist. Port Facs. Rev.
Rfdg. (Trunkline LNG Co. Proj.) Series 1992,
7.75% 8/15/22 Ba2 13,000 14,820 507729BM
Louisiana Offshore Term. Auth. Deepwtr. Port
Rev. Rfdg. (1st Stage) (Loop, Inc. Proj.)
Series E, 7.60% 9/1/10 A3 2,300 2,651 546510DA
Monroe-West Monroe Pub. Trust Fing. Auth.
Mtg. Rev. Rfdg. (Cap. Appreciation)
Series C, 0% 8/20/14 AA- 9,000 2,509 611382BU
New Orleans Audubon Park Commission
Aquarium Rev. Series 1992 A, 8% 4/1/12 5,000 5,388 647629AM
St. James Parish Poll. Cont. Rev. (B.F. Goodrich
Proj.) 14.50% 12/1/11 Baa1 500 631 790102AR
St. John Baptist Parish Sales Tax Dist. Rfdg.
Series 1989, 7.80% 12/1/14 Baa 2,700 3,146 790207BT
St. John Baptist Parish School Dist. #1 Unltd. Tax
5.20% 3/1/09 Baa 1,695 1,598 790229GB
St. Tammany Pub. Trust Fing. Auth. Rev. Rfdg.
(Cap. Appreciation) Series C, 0% 7/20/14 Aa 4,650 1,308 793499AE
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
LOUISIANA - CONTINUED
Shreveport Wtr. & Swr. Rev. 5.95% 12/1/14,
(FGIC Insured) Aaa $ 3,500 $ 3,666 825485LS
West Feliciana Parish Poll. Cont. Rev.
(Gulf States Util. Co.) Series C, 7% 11/1/15 Baa3 2,500 2,734 952789AW
Westside Habilitation Ctr. Cheneyville Rev. Rfdg.
(Intermediate Care Fac. Retirement)
8.50% 10/1/13 - 4,900 4,905 961500AJ
48,481
MAINE - 0.4%
State Str. Hsg. Preservation Corp. Hsg. Rev.
(Multi-Family Proj.) Series A:
7.20% 1/1/02 A 620 652 85748HAB
7.375% 1/1/12 A 3,505 3,698 85748HAC
7.50% 1/1/19 A 4,700 4,964 85748HAD
9,314
MARYLAND - 1.0%
Anne Arundel County Econ. Dev. Rev.
(Regency Club II Apts.) 9% 12/1/10,
(MBIA Insured) (FHA Guaranteed) Aaa 1,000 1,043 035902BR
Baltimore County Mtg. Rev.:
(Kingwood IV) 9.50% 8/1/10,
(FHA Guaranteed) AAA 1,000 1,041 059148TH
(Loch Raven Village) 10.10% 11/20/20,
(GNMA Coll.) AAA 1,390 1,447 059148RS
Howard County Mtg. Rev. (Heartlands Elderly
Apts. Proj.) 8.875% 12/1/10, (MBIA Insured)
(FHA Guaranteed) Aaa 250 266 442586JT
Maryland Commty. Dev. Administration Dept.
Hsg. & Commty. Dev. (Single Family Prog.)
4th Series, 7.40% 4/1/17 Aa 2,500 2,647 57419HPE
Maryland Health & Higher Edl. Facs. Auth. Rev.:
Rfdg.:
(Doctors Commty. Hosp.) 5.75% 7/1/13 Baa 2,500 2,406 574216FQ
(Francis Scott Key Medical Ctr.)
5% 7/1/13, (FGIC Insured) Aaa 2,500 2,375
574216CW (Holy Cross Hosp.) Issue A,
7.125% 7/1/10, (AMBAC Insured) Aaa 1,350 1,534 574215N9
Montgomery County Hsg. Opportunities
Commission Hsg. Rev. (Multi-Family)
Series B, 9.375% 7/1/15 Aa 985 1,033 613344CL
Prince Georges County Hosp. Rev.
(Greater Southeast Health Care Sys.)
6.375% 1/1/13 Baa 2,250 2,298 741710AW
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
MARYLAND - CONTINUED
Prince George's County Rfdg. (Consolidated Pub.
Impt. Ltd. Tax) 5.10% 10/1/04 A $ 1,000 $ 1,020 741701BH
Prince George's County Solid Waste Mgmt. Sys.
Rev. 5.25% 6/15/13 A 1,500 1,431 74172MBK
Queen Anne's County Econ. Dev. Rev. (Safeway
Stores Proj.) 7.75% 12/15/09 BB- 2,515 2,518 748235AA
21,059
MASSACHUSETTS - 10.0%
Birmingham Baptist Med. Ctr. Spl. Care Facs.
Fing. Auth. Rev. (Baptist Med. Ctr.) Series A,
5.50% 8/15/13, (MBIA Insured) Aaa 3,500 3,448 091104DP
Massachusetts Gen. Oblig. Ltd. Tax
(Consolidated Loan) Series C, 0% 12/1/04 A 6,000 3,443 575823J2
Massachusetts Health & Edl. Facs. Auth. Rev.:
(Beth Israel Hosp.) 8.98% 7/1/25,
(AMBAC Insured) (a)(f) Aaa 5,000 5,456 575851JP
(Brigham & Women's Hosp.) Series C,
7.125% 6/1/09 AA 1,000 1,114 575850YL
(1st Mtg.) (Fairview Extended Care) Series A:
10.125% 1/1/11 - 3,070 3,358 575850M7
10.25% 1/1/21 - 6,400 7,040 575850M4
(Metro West Health, Inc.) Series C,
6.50% 11/15/18, (AMBAC Insured) A 4,000 4,230 575851LP
(New England Med. Ctr. Hosp.) Series F,
6.50% 7/1/12, (FGIC Insured) Aaa 1,300 1,412 575851AF
(St. Luke's Hosp. New Bedford)
8.55% 8/15/23, (MBIA Insured) (a)(f) Aaa 2,600 2,681 575851C7
(Salem Hosp.) Series A, 6.75% 7/1/00 - 5,905 6,097 575849K2
(Tufts Univ.) Series C, 7.40% 8/1/18 A1 2,815 3,156 575851YL
Massachusetts Hsg. Fin. Agcy.:
(Hsg. Projs.) Series A:
6.30% 10/1/13, (AMBAC Insured) Aaa 11,000 11,344 575852VR
6.15% 10/1/15, (AMBAC Insured) Aaa 5,250 5,342 575852VS
(Multi-Family) Series 1984 B, 10.375%
12/1/09, (MBIA Insured) Aaa 1,000 1,058 575910BG
(Residential Dev. Section 8) Issue V Series A,
10.60% 12/1/03 A+ 800 824 575854KM
(Single Family Mtg. Purchase):
Series 1983 C, 10.125% 12/1/07 Aa 255 263 575853EK
Series 1984 A, 11.375% 12/1/08,
(Escrowed to Maturity) (b) Aa 215 223 575853FX
Massachusetts Ind. Fin. Agcy. Health Care Facs.
Rev. (Hampden Nursing Home Proj.) Series A,
9.75% 10/1/17 - 4,815 5,134
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Rev.:
(Atlanticare Med. Ctr.) Series A,
10.125% 11/1/14 - $ 7,300 $ 8,450 575914GZ
(Cap. Appreciation) (Massachusetts Biomedical
Research):
Series A-1, 0% 8/1/03 - 23,300 13,776 575914DT
Series A-2:
0% 8/1/04 - 5,000 2,775 575914EA
0% 8/1/06 - 26,800 12,998 575914EC
0% 8/1/09 - 15,800 6,260 575914EF
0% 8/1/10 - 11,000 4,070 575914EG
(1st Mtg. Reeds Landing):
7.75% 10/1/00 - 1,300 1,294 575914ZS
575909AE 8.625% 10/1/23 - 3,000 2,976 575914ZU
Massachusetts Muni. Wholesale Elec. Co. Pwr.
Supply Sys. Rev.:
Rfdg. Series A:
5.10% 7/1/08, (AMBAC Insured) Aaa 8,775 8,523 575765MT
575765MA 5% 7/1/10, (AMBAC Insured) Aaa 3,680 3,533 575765MU
Series A:
8.75% 7/1/18, (Pre-Refunded to 1/1/04
@ 100) (b) Baa1 165 187 575765NG
8.75% 7/1/18, (Pre-Refunded to 1/1/94
@ 100) (b) Baa1 30 30 575765NJ
8.75% 7/1/18, (Pre-Refunded to 7/1/94
@ 100) (b) Baa1 30 31 575765NX
6.375% 7/1/15 Baa1 29,055 29,636 575765BF
6% 7/1/18 Baa1 11,690 11,763 575765JG
7.72% 7/1/18, (AMBAC Insured) (a) (f) Aaa 5,000 4,750 575765MV
Series B, 6.125% 7/1/17 Baa1 6,165 6,288 575765BV
Series C, 6.625% 7/1/10 Baa1 4,500 4,804 575765KA
Series D, 6.125% 7/1/19 Baa1 8,905 9,061 575765LZ
Series E, 6.125% 7/1/19 Baa1 8,665 8,817
Massachusetts Univ. Ctfs. of Prtn.
(Telecommunications Sys.) Series A:
7.45% 11/1/97 BBB- 810 872 914442BF
7.70% 5/1/99 BBB- 1,190 1,286 914442BJ
7.70% 11/1/99 BBB- 1,240 1,341 914442BK
7.80% 5/1/00 BBB- 1,285 1,391 914442BL
210,535
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
MICHIGAN - 4.4%
Detroit Convention Facs. Rev. Rfdg. (Cobo Hall
Expansion Proj.) 5.25% 9/30/12 A $ 3,000 $ 2,831 251131BF
Detroit Hosp. Fin. Auth. Facs. Rev. (Michigan
Healthcare Corp. Proj.) 10% 12/1/20 B 29,310 32,534 251145AA
Dickinson County Econ. Dev. Corp. Poll. Cont.
Rev. Rfdg. (Champion Int'l. Corp. Proj.)
5.85% 10/1/18 Baa1 4,150 4,015 253195AA
Dickinson County Econ. Dev. Corp. Solid Waste
Disp. Rev. Rfdg. (Champion Int'l. Corp.)
6.55% 3/1/07 Baa1 5,000 5,219 253200AD
Grand Rapids San. Swr. Sys. Rev. Impt. & Rfdg.
7% 1/1/16 A1 2,195 2,415 386289BA
Michigan Hosp. Fin. Auth. Rev.:
Rfdg.:
(Bay Med. Ctr.) Series A, 8.25% 7/1/12 Baa1 1,000 1,133 59465CSP
(Brighton Hosp.) Series A,
8.625% 10/1/18 B 1,550 1,618 59465CHH
(Detroit Macomb Hosp. Corp.) Series A:
7.40% 6/1/13 B 1,160 1,156 59465CCV
7% 6/1/15 B 3,500 3,303
59465CCW (Daughters of Charity) 10% 11/1/15 Aa 2,900 3,273 5946483B
Michigan Hsg. Dev. Auth. Single Family Mtg.
Rev. Series A:
7.50% 6/1/15 Aa 470 503 594653HF
7.70% 12/1/16 Aa 1,775 1,888 594653EK
Michigan Pub. Pwr. Agcy. Rev. Rfdg. (Belle
River Proj.) Series A, 5.25% 1/1/18 A1 5,000 4,788 594570EH
Michigan South Central Pwr. Agcy. Pwr. Supply
Sys. Rev. Rfdg. Series 1991, 6.75% 11/1/10 A 2,000 2,175 594689BR
Michigan Strategic Fund Ltd. Oblig. Rev. (Mercy
Svcs. for Aging Proj.) 9.40% 5/15/20 - 9,295 10,178 594692XT
Pontiac Stadium Bldg. Auth. Rev. 6.60% 3/1/00 Baa 1,395 1,425 732616AY
Waterford Township Econ. Dev. Corp. Rev. Ltd.
Tax Oblig. (Canterbury Health Care):
8% 7/1/08 - 300 303 941458AT
8.375% 7/1/23 - 1,000 1,033 941458AU
Western Townships Util. Auth. Swr. Disp. Sys.:
Ltd. Tax 8.20% 1/1/18 BBB+ 2,000 2,244 959767AK
Rfdg.:
0% 1/1/05, (Cap. Guaranty Insured) Aaa 2,810 1,576 959767BC
6.50% 1/1/10, (Cap. Guaranty Insured) Aaa 7,720 8,251 959767BE
91,861
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
MINNESOTA - 3.2%
Centennial Independent School Dist. #12 Rfdg.
Series B, 4.875% 2/1/12, (FGIC Insured) Aaa $ 2,610 $ 2,444 150908DE
Duluth Econ. Dev. Auth. Health Care Facs. Rev.
(The Duluth Clinic Ltd.) 6.20% 11/1/12,
(AMBAC Insured) Aaa 1,500 1,603 26444CAX
Minneapolis & St. Paul Hsg. & Redev. Auth.
Healthcare Sys. Rev. (Healthspan Health Sys.
Corp.) (Health One Sys.) Series A, 4.75%
11/15/18, (AMBAC Insured) Aaa 5,000 4,475 603695DF
Minneapolis Hosp. Rev. Rfdg. (Fairview Hosp. &
Healthcare) 6.50% 1/1/11, (MBIA Insured) Aaa 2,000 2,193 603745MK
Minneapolis Hsg. & Redev. Auth. Mtg. Single
Family Rev. 6.75% 5/1/09, (FHA Guaranteed) A1 1,100 1,123 603746AA
Northern Minnesota Muni. Pwr. Agcy. Elec. Sys.
Rev. Rfdg. Series B, 5.50% 1/1/18,
(AMBAC Insured) Aaa 3,250 3,258 665444DQ
Rochester Health Care Facs. Rev. (Mayo
Foundation/Mayo Med. Ctr.):
RIB Series H, 9.08% 11/15/15 (a)(f) AA+ 9,000 9,911 771902CS
Series I:
5.90% 11/15/09 AA+ 2,000 2,135 771902CL
5.90% 11/15/10 AA+ 2,250 2,399 771902CM
St. Louis Park Hosp. Facs. Auth. Rev. (Health Sys.
Oblig.) 5.20% 7/1/23, (AMBAC Insured) Aaa 2,000 1,893 791748CQ
St. Paul Hsg. & Redev. Auth. Hosp. Rev.:
(Healtheast Proj.) Series C, 9.75% 11/1/17 Baa 2,110 2,466 792888FN
(St. Paul-Ramsey Med. Ctr. Proj.)
5.50% 5/15/13, (AMBAC Insured) Aaa 1,180 1,190 792888HU
St. Paul Hsg. & Redev. Auth. Tax Increment Rev.
(Downtown & 7th Place Proj.) 2.75% 9/1/94,
(AMBAC Insured) Aaa 2,000 2,003 792904BQ
Western Minnesota Muni. Pwr. Agcy. Supply Rev.:
Rfdg. Series A, 7% 1/1/13 (e) A 20,000 21,650 958697DX
Series A, 6.125% 1/1/16 A 8,775 9,005 958697CX
67,748
MISSISSIPPI - 0.9%
Claiborne County Poll. Cont. Rev. (Middle South
Energy, Inc. Proj.) Series C, 9.875% 12/1/14 - 5,000 6,144 179423AC
Hinds County Ctfs. of Prtn. (Welfare Dept. Proj.)
7.75% 3/1/09 A 1,095 1,215 433114AC
Hinds County Mtg. Rev. Rfdg. (Methodist Hosp. &
Rehabilitation) 5.60% 5/1/12,
(AMBAC Insured) Aaa 4,000 4,055 433142AL
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
MISSISSIPPI - CONTINUED
Mississippi Home Corp. Single Family Sr. Rev.
Rfdg. Series 1990 A, 9.25% 3/1/12,
(FGIC Insured) Aaa $ 735 $ 789 60535MAC
Mississippi Hosp. Equip. & Facs. Auth. Rev.
(Singing River Hosp. Sys. Proj.)
5.50% 3/1/13 Aaa 2,855 2,819 605360HB
Panola County Ind. Dev. Rev. Rfdg. (Kroger Co.)
7.125% 11/1/12 Ba3 3,250 3,449 698558AB
18,471
MISSOURI - 2.4%
Franklin County Reorganization School Dist. #R-XI
Rfdg.:
5.70% 3/1/08, (FGIC Insured) Aaa 700 718 353100CN
5.75% 3/1/13, (FGIC Insured) Aaa 1,000 1,023 353100CP
Grandview Ind. Dev. Auth. Ind. Dev. Rev. Rfdg.
(K mart Corp. Proj.) 6.50% 12/1/08 A 500 542 386778AA
Greene County Single Family Mtg. Rev.
9.375% 12/1/06, (AMBAC Insured) Aaa 105 111 394591DC
Kansas City Ind. Dev. Auth. Health Facs. Rev.
Rfdg. & Impt. (Menorah Med. Ctr. Proj.)
9.25% 6/1/16 - 3,500 3,763 484906AB
Mehlville School Dist. #09 Rfdg. 5.75% 2/15/09,
(MBIA Insured) Aaa 2,000 2,078 585191LJ
Missouri Health & Edl. Facs. Auth. Health Facs.
Rev. (Barnes Jewish-Christian Health)
5.25% 5/15/12 Aa 4,000 3,855 60635RJF
Missouri Health & Edl. Facs. Auth. Hosp. Facs.
Rev.:
(Heartland Health Sys. Proj.)
6.35% 11/15/17, (AMBAC Insured) Aaa 4,480 4,827
60635RCR (SSM Health Care) Series AA,
6.25% 6/1/07, (MBIA Insured) Aaa 1,000 1,095 60635RCM
Missouri Hsg. Dev. Commission Mtg. Purchase
(Single Family) 6.60% 11/15/10,
(FHA Guaranteed) Aa 1,500 1,536 606353MS
Missouri Reg'l. Convention & Sport Complex
Auth. Series A, 6.90% 8/15/21 A1 8,750 9,680 60636MAS
Missouri Univ. Rev. Rfdg. (Columbia Hosp. & Clinics)
Series A, 6.50% 11/1/11, (AMBAC Insured) Aaa 1,500 1,638 914488D8
New Madrid Pwr. Place Rev. 7.25% 6/1/03 Baa1 8,930 9,086 646819BD
St. Louis County Ind. Dev. Auth. Hosp. Rev.
(Daughters of Charity-DePaul Health)
10% 11/1/15 Aa 1,980 2,224 79130HAB
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
MISSOURI - CONTINUED
St. Louis County Reg'l. Convention & Sports
Complex Auth. Series B:
7% 8/15/11 A $ 1,000 $ 1,104 791340AR
7% 8/15/21 A 3,150 3,465 791340AS
St. Louis Reg'l. Convention & Sports Complex
Auth. Series C, 7.90% 8/15/21 - 3,000 3,300 791687AB
50,045
MONTANA - 0.8%
Forsyth Poll. Cont. Rev. Rfdg. (Washington Wtr.
Pwr. Proj.) Series A, 7.125% 12/1/13,
(MBIA Insured) Aaa 2,250 2,531 346668BH
Great Falls Ind. Dev. Rev. Rfdg. (K mart Corp.
Proj.):
6.50% 11/15/01 A2 200 221 390435PT
6.90% 5/15/06 A2 905 993 390435PU
Great Falls Wtr. & Swr. Rev. Series 1992,
6.40% 8/1/12, (FGIC Insured) Aaa 1,200 1,310 390472BX
Montana Board of Investment Payroll Tax
(Workers Compensation) Series 1991,
6.875% 6/1/11, (MBIA Insured) Aaa 6,900 7,710 61213HDC
Montana Health Facs. Auth. Hosp. Facs. Rev.
(Holy Rosary Hosp.) 5.25% 7/1/20,
(MBIA Insured) Aaa 2,750 2,606 61213EHH
Silver Bow Wtr. Inc. Wtr. Sys. Rev. (Butte-Silver
Bow Proj.) 6.50% 11/1/14, (FGIC Insured) Aaa 1,000 1,098 827429AR
16,469
NEBRASKA - 1.7%
Buffalo County Hosp. Auth. #1 (Sisters of Charity
Health Care) Series A, 6.625% 5/15/09,
(MBIA Insured) Aaa 1,000 1,104 119447DC
Douglas County Hosp. Auth.:
#1 (Immanuel Med. Ctr., Inc.) 6.90% 9/1/11,
(AMBAC Insured) Aaa 3,250 3,673 259228DE
#2 (Catholic Health) (Archbishop Mercy)
7.25% 11/1/21 A1 1,500 1,674 259230DT
Hastings Elec. Sys. Rev. Rfdg.:
5.20% 1/1/13 A 3,000 2,846 418604CZ
6.30% 1/1/19 A 4,500 4,793 418604CH
Lancaster County Hosp. Auth. #1 Hosp. Rev.
(Bryan Mem. Hosp. Proj.):
6.60% 6/1/12, (MBIA Insured) Aaa 1,000 1,103 513886DQ
6.70% 6/1/22, (FGIC Insured) Aaa 2,500 2,772 513886DR
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
NEBRASKA - CONTINUED
Nebraska Investment Fin. Auth. Hosp. Rev.
(Methodist Health Sys.):
6.65% 3/1/00, (MBIA Insured) Aaa $ 2,500 $ 2,784 639902BH
6.75% 3/1/01, (MBIA Insured) Aa 2,400 2,691 639902BJ
7% 3/1/06, (MBIA Insured) Aaa 1,000 1,128 639902BP
Nebraska Pub. Pwr. Dist. Rev. Rfdg. (Pwr. Supply
Sys.) 6.10% 1/1/10 A1 1,500 1,571 639683F3
Omaha Pub. Pwr. Dist. Elec. Rev. Rfdg. Series B,
6.15% 2/1/12 Aa 5,000 5,387 681793ZH
Scotts Bluff County Hosp. Auth. #1 Hosp. Rev.
(Reg'l. West Med. Ctr. Proj.)
6.45% 12/15/04 A 3,000 3,217 810143CG
34,743
NEW HAMPSHIRE - 0.6%
New Hampshire Business Fin. Auth. Poll. Cont.
Rev. Rfdg. (United Illuminating Co.) Series A,
5.875% 10/1/33 Baa3 2,500 2,391 64468CAE
New Hampshire Higher Edl. & Health Facs. Auth.
Rev. (Frisbie Mem. Hosp.) 9.50% 10/1/08 Baa 9,060 11,008 644618NQ
13,399
NEW JERSEY - 1.1%
New Jersey Econ. Dev. Auth. Econ. Dev. Rev.
(Statewide Realty-Vista Hotel Proj.)
11% 12/15/17 (d)(e) - 27,470 18,405 645775VZ
New Jersey Health Care Facs. Fing. Auth. Rev.
(Monmouth Med. Ctr.) 10.50% 7/1/14,
(HIB Insured) A 4,350 4,584 6457922Q
22,989
NEW MEXICO - 3.4%
Albuquerque Hosp. Rev. Rfdg. (Presbyterian
Health Care Sys.) 6.375% 8/1/07,
(FGIC Insured) Aa 500 544 013544HN
Albuquerque Rev. Rfdg. (The Evangelical
Lutheran) 5.90% 6/1/13, (Cap. Guaranty
Insured) Aaa 1,000 1,026 013638AP
Farmington Poll. Cont. Rev.:
Rfdg.:
(Pub. Svc. Co. of New Mexico) Series A,
6.375% 12/15/22, (MBIA Insured) Aaa 2,500 2,672 311450CR
(Pub. Svc. Co. of New Mexico San Juan Proj.):
Series A, 6.40% 8/15/23 Ba2 6,500 6,516 311450CU
Series X, 5.90% 4/1/07 Ba2 12,640 12,419 311450AF
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
NEW MEXICO - CONTINUED
Farmington Poll. Cont. Rev. - continued
Rfdg. (Southern California Edison) Series A,
5.875% 6/1/23, (MBIA Insured) Aaa $ 4,000 $ 4,105 311450CS
(Pub. Svc. Co. of New Mexico San Juan Proj.)
Series A, 6% 3/1/08 Ba2 14,480 14,299 311450AJ
Gallup Poll. Cont. Rev. Rfdg. (Plains Elec.
Generation Unltd. Tax) 6.65% 8/15/17,
(MBIA Insured) Aaa 14,150 15,600 364070AT
Las Cruces Health Facs. Rev. Rfdg. (Evangelical
Lutheran Proj.) 6.45% 12/1/17,
(Cap. Guaranty Insured) Aaa 2,515 2,691 517481AQ
New Mexico Univ. Rev.:
Rfdg.:
Series A:
6.25% 6/1/12 A1 2,000 2,188 914692TE
6% 6/1/21 A1 4,050 4,313 914692TH
Series B:
5.75% 6/1/12 A1 2,500 2,550 914692TF
5.75% 6/1/22 A1 205 208
6.50% 6/1/21 A1 1,000 1,084 914692TJ
70,215
NEW YORK - 4.4%
New York City Rfdg. Series D:
5.75% 8/15/07 Baa1 3,500 3,461 649654PF
5.75% 8/15/09 Baa1 3,000 2,940 649655MP
New York State Dorm. Auth. Rev.:
Rfdg. (State Univ. Edl. Facs.) Series A:
5.50% 5/15/13 Baa1 5,000 4,838 649834AQ
5.25% 5/15/15 Baa1 10,000 9,350 649834AS
(City Univ.) Series F, 5% 7/1/14 Baa1 5,000 4,538 649834QR
(City Univ. Sys. Consolidated) Series A,
5.75% 7/1/13 Baa1 5,000 4,963 649834HV
New York State Local Govt. Assistance Corp.:
Rfdg. Series C, 5.50% 4/1/17 A 23,750 23,423 649876JN
RIB 7.50% 4/1/21 (a)(f) A 4,000 3,760 649876JQ
Series B, 0% 4/1/08 A 5,000 2,294 649876BY
New York State Thruway Auth. Svc. Contract Rev.
(Local Hwy. & Bridge) 5.25% 4/1/13 Baa1 3,000 2,828 650017BW
New York State Tollway Auth. Gen. Rev. (Spl.
Oblig.) Series A:
0% 1/1/02 BBB 3,775 2,425 650009CV
0% 1/1/05 BBB 8,500 4,558 650009CY
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
NEW YORK - CONTINUED
New York & New Jersey Port (Delta Airlines, Inc.
Proj.) Series 1R, 6.95% 6/1/08 Ba1 $ 21,500 $ 22,978
Triborough Bridge & Tunnel Auth. Rev. Rfdg.
(Gen. Purp.) Series Y, 6% 1/1/12 AA 1,000 1,065 896029YS
93,421
NORTH CAROLINA - 2.1%
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys.
Rev. Rfdg. Series C, 5% 1/1/21 A 6,000 5,415 658196TH
North Carolina Med. Care Commission Hosp. Rev.:
Rfdg. (Mercy Hosp. Proj.) 6.50% 8/1/15 A- 2,000 2,105 658202Y8
(Duke Univ. Hosp. Proj.) Series 1985 A,
8.625% 6/1/10 AA 1,000 1,094 658202LL
(Wesley Long Commty. Hosp. Proj.) Series B,
7.75% 10/1/17 (AMBAC Insured) Aaa 1,000 1,093 658202SK
North Carolina Muni. Pwr. Agcy. #1 Catawba
Elec. Rev. Rfdg.:
0% 1/1/08 A 10,000 4,538 658203QH
0% 1/1/09 A 13,050 5,497 658203QK
0% 1/1/10 A 21,585 8,499 658203QL
6% 11/1/11, (MBIA Insured) Aaa 3,500 3,771 658203QS
5.75% 1/1/15 A 2,475 2,480 658203QT
6.25% 1/1/17 A 6,500 6,752 658203QU
Pitt County Rev. (Pitt County Mem. Hosp.)
6.75% 12/1/14, (MBIA Insured) Aaa 2,000 2,230 724506BD
43,474
NORTH DAKOTA - 0.3%
Mercer County Poll. Cont. Rev. Rfdg. (Montana
Dakota Utils. Co. Proj.) 6.65% 6/1/22,
(FGIC Insured) Aaa 5,500 6,057 587850CY
OHIO - 2.3%
Broadview Heights Ind. Dev. Rev. (Royalview
Manor Dev.) Series A, 10.625% 7/15/14,
(FHA Guaranteed) - 675 713 111336AA
Eaton Ind. Dev. Rev. Rfdg. (Baxter Int'l., Inc. Proj.)
6.50% 12/1/12 A3 2,605 2,804 278200AC
Hamilton County Swr. Sys. Rev. Rfdg. & Impt.
Metropolitan Swr. Dist. Series A,
5.35% 12/1/07, (FGIC Insured) Aaa 2,475 2,512 407288FU
Hamilton Elec. Sys. Mtg. Rev.:
Rfdg. Series 1992 A,
6% 10/15/08, (FGIC Insured) Aaa 1,000 1,046 40727FCX
Series B, 6.125% 10/15/08, (FGIC Insured) Aaa 1,000 1,071 40727FCQ
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
OHIO - CONTINUED
Loveland City School Dist. Unltd. Tax
6.65% 12/1/15 A $ 3,500 $ 3,806 547252GN
Montgomery County Ind. Dev. Rev. Rfdg. (The
Kroger Co.) 7.45% 9/1/07 Ba3 4,700 5,082 613535FS
Mount Vernon Hosp. Rev. (Knox Commty. Hosp.)
7.875% 6/1/12 - 16,940 18,083 623646AM
Ohio Air Quality Dev. Auth. (Columbus & Southern
Pwr. Co.) Series A, 6.375% 12/1/20,
(FGIC Insured) Aaa 500 538 677525HA
Ohio Bldg. Auth. (Workers Complex W. Green
Bldg.) 4.75% 4/1/14 A 3,000 2,745 6775536N
Ohio Wtr. Dev. Auth. Rev. Rfdg. & Impt.
(Pure Wtr.) 6% 12/1/08, (AMBAC Insured) Aaa 3,000 3,172 6776582U
Warren County Hosp. Facs. Rev. Rfdg. & Impt.
(Otterbein Home Proj.) 7.20% 7/1/11,
LOC Fifth Third Bancorp Aa2 2,450 2,726 935158AV
Warren Hosp. Rev. Rfdg. (Warren Gen. Hosp.
Proj.) Series B, 7.20% 11/15/09 BBB 3,500 3,732 935482CM
48,030
OKLAHOMA - 0.7%
Grand River Auth. Rev. Rfdg. 5.50% 6/1/09 A 12,500 12,672 386442PJ
Oklahoma Tpk. Auth. Tpk. Rev. 1st Sr. Series A,
6.125% 1/1/20 A1 1,500 1,577 679111HT
Valley View Hosp. Auth. Rev. 10% 10/1/14,
(HIB Insured) A 1,140 1,174 920175BJ
15,423
OREGON - 1.0%
Astoria Hosp. Facs. Auth. Hosp. Rev.
(Columbia Mem. Hosp.) 7% 1/1/13 - 2,500 2,666 046279AR
Multnomah County School Dist. #40 Unltd. Tax
5.625% 6/1/12 AA- 1,200 1,221 625693DU
North Clackamas Parks & Recreational Dist. Rev.
(Recreational Facs.) 5.70% 4/1/13 A- 1,000 1,021 658624AP
Oregon Hsg. Edl. & Cultural Facs. Auth. Rev.:
(Lewis & Clark College Proj.) Series A,
7.125% 7/1/20, (MBIA Insured) Aaa 1,100 1,264 68608LAK
(Reed College Proj.) Series A, 6.75% 7/1/11 A+ 500 556 68608LAX
Portland Hosp. Facs. Auth. Hosp. Rev. (Legacy
Health Sys.):
Series A, 6.625% 5/1/11, (AMBAC Insured) Aaa 250 279 736698EA
Series B:
6.625% 5/1/11, (AMBAC Insured) Aaa 2,000 2,230 736698EB
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
OREGON - CONTINUED
Portland Hosp. Facs. Auth. Hosp. Rev. (Legacy
Health Sys.) - continued
6.70% 5/1/21, (AMBAC Insured) Aaa $ 11,000 $ 12,278 736698ED
21,515
PENNSYLVANIA - 4.7 %
Allegheny County Hosp. Dev. Auth. Health
Facs. Rev. (Allegheny Valley School):
8% 2/1/02 Baa 1,885 2,085 0172894R
8.50% 2/1/15 Baa 3,325 3,716 0172894S
Allegheny County Hosp. Dev. Auth. Rev.
(Allegheny Health Ed. & Research Corp.)
Series D, 10.625% 7/1/12, (Pre-Refunded
to 1/1/94 @ 102) (b) Aaa 500 513 017289RS
Allegheny County Ind. Dev. Auth. Rev. (K mart
Corp.) (Commercial Dev.) Series A,
11% 1/1/07 A2 2,630 3,800 017292DN
Butler County Hosp. Auth. Rev. (North Hills
Passavant Hosp.) Series A:
6.80% 6/1/06, (Cap. Guaranty Insured) Aaa 5,000 5,531 123592BC
6.90% 6/1/09, (Cap. Guaranty Insured) Aaa 5,000 5,556 123592BD
Delaware County Auth. Rev. (First Mtg.
Riddle Village Proj.) 9.25% 6/1/22 - 5,000 5,325 245913BF
Delaware County Ind. Dev. Auth. Envir. Impt.
Rev. (BP Oil Proj.) 5.875% 4/1/98 - 3,640 3,731 246014AD
Gettysburg Muni. Auth. College Rev.
(Gettysburg College Proj.) 6.60% 2/15/12 A 2,500 2,688 374311BH
Harrisburg Auth. Wtr. Rev. (Complimentary
Auction Rate B-3) 8.82% 7/15/15,
(FGIC Insured) (a)(f) Aaa 4,000 4,320 41473MCB
Lehigh County Gen. Purp. Auth. Rev.
(Wiley House) 9.50% 11/1/16 - 5,930 6,686 524805QM
Northumberland County Auth. Commonwealth
Lease Rev. 0% 10/15/13, (MBIA Insured) Aaa 11,830 3,845 667067AR
Pennsylvania Intergovernmental Coop. Auth. Spl.
Tax Rev.:
Rfdg. Series A:
5% 6/15/15 Baa 5,210 4,813 708840CH
5% 6/15/22, (MBIA Insured) Aaa 10,835 9,900 708840CJ
(City of Philadelphia Funding Prog.)
5.75% 6/15/15 Baa 7,000 7,000 708840BN
Philadelphia Auth. Ind. Dev. Rev. (Bakers Bay
Nursing Proj.) 10.25% 8/1/23,
(FHA Guaranteed) AAA 1,796 1,861 717818ER
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
PENNSYLVANIA - CONTINUED
Philadelphia Hosp. & Higher Ed. Facs. Auth.
Hosp. Rev. (Temple Univ. Hosp.) Series A,
6.50% 11/15/08 Baa1 $ 1,000 $ 1,068 717903RN
Philadelphia Muni. Auth. Rev. Rfdg. Lease
Series D:
6% 7/15/03 Ba 1,500 1,494 717904FX
6.125% 7/15/08 Ba 4,000 3,965 717904FY
Philadelphia Wtr. & Wastewtr. Rev.:
Rfdg. 5% 6/15/12, (FGIC Insured) Aaa 3,000 2,820 717893BG
8.27% 6/15/12, (FGIC Insured) (a)(f) Aaa 10,000 10,163 717893BF
Washington County Hosp. Auth. (Shadyside Hosp.
Proj.) 5.875% 12/15/09, (AMBAC Insured) Aaa 3,000 3,113 938592EK
Wyoming Ind. Dev. Auth. Poll. Rfdg. (Proctor &
Gamble Paper Proj.) 5.55% 5/1/10 Aa2 4,300 4,288 983283AD
98,281
PUERTO RICO - 0.3%
Puerto Rico Tel. Auth. Rev.:
RIB 8.03% 1/16/15, (MBIA Insured) (a)(f) Aaa 2,000 2,058 745297JT
6.95% 1/1/04, (AMBAC Insured) (a)(f) Aaa 4,000 4,075 745297HX
6,133
RHODE ISLAND - 0.6%
Newport Gen. Oblig. 6.80% 4/15/10 A1 605 665 652317SH
Rhode Island Depositors Econ. Protection Corp.
Spl. Oblig. Rfdg. Series A, 5.75% 8/1/12 Baa1 3,495 3,425 76218KEJ
Rhode Island Health & Edl. Bldg. Corp. Hosp.
Fing. Rev. (Roger Williams Hosp.)
7.75% 7/1/16 BBB 1,000 1,110 762241E5
Rhode Island Health & Edl. Bldg. Corp. Rev.
(Higher Ed. Facs. Johnson & Wales Univ.):
Rfdg. Series A, 5.25% 4/1/16,
(Connie Lee Insured) Aaa 4,000 3,775 762242FM
6.375% 4/1/12, (Connie Lee Insured) AAA 1,000 1,071 762242CB
6.25% 4/1/22, (Connie Lee Insured) AAA 1,000 1,058 762242CC
Rhode Island Hsg. & Mtg. Fin. Corp. (Home
Ownership Opportunity) Series 3-A,
7.80% 10/1/10 Aa 1,000 1,093 762211HP
12,197
SOUTH CAROLINA - 0.6%
Florence Ind. Rev. (Florence Business Technical
Assoc.):
11.25% 11/1/94 - 115 118 340322AJ
11.25% 11/1/14 - 6,500 6,663 340322AK
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
SOUTH CAROLINA - CONTINUED
Grand Strand Wtr. & Swr. Auth. Waterwks. &
Swr. Sys. Rev. Series 1991, 6.375% 6/1/12,
(MBIA Insured) Aaa $ 2,000 $ 2,245 386475BU
Rock Hill Ind. Rev. (Rock Hill Business Technical
Assoc. Proj.) 11% 10/1/14, LOC Canadian
Imperial Bank of Commerce - 3,000 3,011 772227AK
South Carolina Hsg. Auth. (Home Ownership
Mtg. Purchase) Series 1985 B,
9.375% 7/1/16 Aa 1,180 1,248 837117DG
13,285
SOUTH DAKOTA - 0.2%
Rapid City Civic Ctr. Facs. Rev. (Rushmore Plaza
Partners Ltd. Proj.) 11.50% 6/30/09 A 595 632 753354BC
South Dakota Lease Rev. (Trust Cfts.) Series A,
6.625% 9/1/12, (Cap. Guaranty Insured) Aaa 1,220 1,337 83756PCF
Spearfish School Dist. #40-2 Unltd. Tax
(Lawrence County) 7.30% 7/1/11 A 1,500 1,712 847328CE
3,681
TENNESSEE - 0.8%
Bradley County Ind. Dev. Board Ind. Dev. Rev.
Rfdg. (Kroger Co. - Peytons SE Proj.)
8.10% 5/1/12 Ba3 4,000 4,465 104565CK
Chattanooga-Hamilton County Hosp. Auth. Hosp.
Rev. (Erlanger Med. Ctr.) 5.50% 10/1/13,
(FSA Insured) Aaa 2,500 2,491 162362EP
Chattanooga Ind. Dev. Board Poll. Cont. Rev.
(Dupont E.I. de Nemours & Co.)
6.35% 7/1/22 Aa2 1,000 1,081 162420BL
Clarksville Wtr. Swr. & Gas Rev. Rfdg. & Impt.
(Cap. Appreciation):
0% 2/1/14, (MBIA Insured) Aaa 1,100 347 182618DY
0% 2/1/15, (MBIA Insured) Aaa 750 223 182618DZ
Knox County Health & Edl. Hsg. Facs. Board
Hosp. Facs. Rev. (Mercy Health Sys.) Series B,
5.875% 9/1/15, (AMBAC Insured) Aaa 1,500 1,538 499523LC
Memphis-Shelby County Aprt. Auth. Aprt. Rev.
Rfdg. 5.65% 9/1/15, (MBIA Insured) Aaa 1,500 1,509 586111CF
Tennessee Hsg. Dev. Auth. Mtg. Fin. Series A,
5.90% 7/1/18 A1 4,150 4,175 880460LG
15,829
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
TEXAS - 5.2%
Austin Util. Sys. Rev. Rfdg. 6% 11/15/13 A $ 3,750 $ 3,914 0524732P
Cass County Envir. Protection Rev.
(Int'l. Paper Co. Proj.) Series B,
5.70% 5/1/12 A3 1,925 1,925 148077AB
Corpus Christi Hsg. Fin. Corp. Single Family
Mtg. Rev. (Lomas & Nettleton Co.) Series A,
13.375% 6/1/13 AA- 65 68 220138BQ
Cypress-Fairbanks Independent School Dist. Rfdg.
Unltd. Tax Series A, 0% 2/15/12,
(PSF Guaranteed) Aaa 14,000 4,953 232760BG
Dallas Hsg. Corp. Cap. Proj. Rev. Rfdg.
(Section 8 Assorted Projs.):
7.70% 8/1/05 A 1,100 1,145 235292AM
7.85% 8/1/13 A 1,000 1,051 235292AN
East Texas Health Facs. Dev. Corp. Hosp. Rev.
(Mem. Foundation Hosp. - Palestine, Inc.):
7.25% 8/15/03 - 2,970 2,959 275573AA
7.80% 8/15/18 - 2,440 2,443 275573AB
Goose Creek Consolidated Independent School
Dist. Rfdg. (Cap. Appreciation):
0% 2/15/08, (PSF Guaranteed) Aaa 2,575 1,172 382604MA
0% 2/15/09, (PSF Guaranteed) Aaa 3,475 1,464 382604MB
0% 2/15/10, (PSF Guaranteed) Aaa 3,270 1,292 382604MC
Harris County Cultural & Ed. Facs. Fin. Corp. Rev.
(Space Ctr. Houston Proj.):
9% 8/15/00 - 6,000 6,878 414007AE
9.25% 8/15/15 - 18,920 22,397 414007AF
Harris County Rfdg. (Toll Road Sr. Lien) Series B,
6.625% 8/15/17, (AMBAC Insured) Aaa 1,000 1,074 414003YL
Houston Hsg. Auth. Rev. (Low Income Elderly Hsg.)
(1st Lien):
7.50% 7/1/16 - 420 428 442384OA
7.50% 7/1/18 - 405 413 442384OC
Houston Wtr. Conveyance Sys. Contract Ctfs. Prtn.
Series D, 6.375% 12/15/07, (AMBAC Insured) Aaa 1,500 1,658 442437EG
Port Arthur Hsg. Fin. Corp. Multi-Family Mtg. Rev.
(Port Arthur Udal Proj.) Series E,
9.625% 1/1/28, (FHA Guaranteed) AAA 485 509 73350MAB
Port Arthur Hsg. Fin. Corp. Single Family Mtg.
Rev. Rfdg. 8.70% 3/1/12 A 1,475 1,610 733500BV
Port Corpus Christi Ind. Dev. Corp. Rev. (Valero
Refining & Marketing Co.) Series A,
10.25% 6/1/17 Baa3 1,535 1,827 733906AB
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
TEXAS - CONTINUED
Port Dev. Corp. Ind. Dev. Rev. Rfdg. (Cargill, Inc.
Proj.) 7.70% 3/1/07 Aa2 $ 1,000 $ 1,134 733885AK
Tarrant County Hsg. Fin. Corp. Single Family Mtg.
Rev. Series A:
9% 11/15/95 Ba 170 169 876394DA
9.50% 5/15/03 Ba 1,075 1,074 876394DG
9.625% 5/15/14 Ba 255 255 876394DJ
Texarkana Health Facs. Dev. Corp. Hosp. Rev.
(Wadley Reg'l. Med. Ctr. Proj.)
7% 10/1/05, (MBIA Insured) Aaa 1,750 1,993 881834BC
Texas Gen. Oblig. Rfdg. (Veterans Land)
7.40% 12/1/20 Aa 2,500 2,781 882716LZ
Texas Hsg. Agcy. Mtg. Rev. Single Family:
(Verex Mtg. Assurance, Inc.) Series B,
11.25% 3/1/16 Aa 90 95 882482FM
Series 1983 A, 10.50% 9/1/09 Aa 90 92 882482DG
Texas Muni. Pwr. Agcy. Rev. Rfdg. (Cap.
Appreciation):
0% 9/1/05, (AMBAC Insured) Aaa 13,000 7,036 882555MX
0% 9/1/10, (AMBAC Insured) Aaa 4,000 1,560 882555NC
0% 9/1/12, (AMBAC Insured) Aaa 5,150 1,777 882555NE
Texas Nat'l. Research Lab. Commission Fing.
Corp. Lease Rev. (Superconducting Super
Collider) 7.10% 12/1/21 A 16,765 17,247 882585AP
Tomball Hosp. Auth. Rev. Rfdg. 6.125% 7/1/23 Baa 7,500 7,124 889854CV
Travis County Health Facs. Dev. Corp. Hosp. Rev.
(Daughters of Charity - Seton Med. Ctr. Proj.)
10.125% 11/1/15 Aa 1,000 1,128 89438HAE
Tyler Health Facs. Dev. Corp. Hosp. Rev. (East
Texas Med. Ctr. Reg'l. Health Sys.) Series B,
6.625% 11/1/11 Baa 7,045 7,194 902261CT
109,839
VERMONT - 2.0%
Burlington Elec. Rev. Series A, 6.25% 7/1/14,
(MBIA Insured) Aaa 3,000 3,195 122079EG
Vermont Colleges Rev.:
Rfdg. 5.125% 7/1/18 A 2,000 1,850
8% 7/1/18 AAA 2,250 2,675 924275AL
Vermont Edl. & Health Bldgs. Fing. Agcy. Rev.:
Rfdg. (Central Vermont Hosp. Proj.)
Series A, 8% 10/1/09 Baa1 2,500 2,700 924160NH
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
VERMONT - CONTINUED
Vermont Edl. & Health Bldgs. Fing. Agcy. Rev.: - continued
(Middlebury College Proj.):
6% 11/1/13 Aa $ 1,000 $ 1,039 924160TZ
6% 11/1/22 Aa 4,500 4,658 924160UA
(St. Michael's College Proj.) 6.50% 10/1/13 A- 3,000 3,199 924160SP
(Vermont Hosp. Med. Ctr.) 6% 9/1/22,
(FGIC Insured) Aa 1,000 1,020 924160UQ
Vermont Muni. Bond Bank:
Series 1:
5.375% 12/1/13 A 3,500 3,399 924211TV
6.25% 12/1/18 A 4,000 4,235 924211TB
Series 1991-1:
7% 12/1/11 A 1,360 1,533 924211RF
6.875% 12/1/22 A 2,385 2,671 924211RG
Series B, 7.20% 12/1/20 A 3,000 3,360 924211PT
Vermont Pub. Pwr. Supply. Auth. Rev. (McNeil
Proj.) Series C, 5% 7/1/15, (AMBAC Insured) Aaa 5,850 5,506 924275BC
41,040
VIRGINIA - 1.2%
Hopewell Ind. Dev. Auth. Resources Recovery Rev.
(Stone Container Corp.) 8.25% 6/1/16 - 4,350 4,307 439714AC
Lynchburg Ind. Dev. Auth. Facs. 1st Mtg. Rev.
Rfdg. (Central Health, Inc.) 8.125% 1/1/16 A1 3,000 3,386 551241CJ
Peninsula Ports Auth. Health Sys. Rev. (Riverside
Health Sys. Proj.) Series A, 6.625% 7/1/18 Aa 4,400 4,741 707164AZ
Peninsula Ports Auth. Hosp. Facs. Auth. Rev. Rfdg.
(Whittaker Mem. Proj.) 8.70% 8/1/23,
(FHA Guaranteed) Aa 1,500 1,738 707165DP
Portsmouth Pub. Impt. Rfdg. 5.45% 8/1/09 A1 1,000 1,006 737237M8
Richmond Redev. & Hsg. Auth. Mtg. Rev.
(Multi-Family Hsg. Pinebrook Proj.)
9.25% 10/1/20, (GNMA Coll.) AAA 750 828 765435CG
Virginia Beach Dev. Auth. Hosp. Facs. Rev.
(Virginia Beach Gen. Hosp.) Series A,
8.75% 12/1/17 A1 600 696 927739BW
Virginia Hsg. Dev. Auth. Commonwealth Mtg.
Series B, Sub-series B-2, 7.625% 7/1/17 Aa 2,000 2,108 928129H5
Virginia Pub. School Auth.:
(Henrico County) 5.10% 7/15/94 Aaa 1,600 1,624
Series C, 4.375% 1/1/95 Aa 4,400 4,444 92817FDC
Virginia Resources Auth. Wtr. & Swr. Sys. Rev.
Series A, 7.70% 11/1/10 Aa 180 209 928180MY
25,087
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
WASHINGTON - 4.5%
King County Pub. Hosp. Dist. #1 Hosp. Facs. Rev.
Rfdg. (Valley Med. Ctr.) 6.25% 9/1/09,
(AMBAC Insured) Aaa $ 1,730 $ 1,868 494787BE
Washington Pub. Pwr. Supply Sys. Nuclear
Proj. #1 Rev. Rfdg.:
Series A, 7.50% 7/1/15 Aa 3,430 3,846 939827SU
Series B, 7.25% 7/1/09 Aa 2,950 3,429 939827LV
7.65% 7/1/12 (a)(f) Aa 5,000 4,563 939827TR
Washington Pub. Pwr. Supply Sys. Nuclear
Proj. #2 Rev. Rfdg.:
Series A, 6.30% 7/1/12 Aa 7,000 7,473 939828PT
Series C:
0% 7/1/04 Aa 1,570 901 939828MG
0% 7/1/05 Aa 16,330 8,798 939828MQ
7.97% 7/1/10, (FGIC Insured) (a)(f) Aa 17,500 16,516 939828RS
Washington Pub. Pwr. Supply Sys. Nuclear
Proj. #3 Rev.:
Rfdg. Series A:
0% 7/1/09, (BIG Insured) Aaa 3,400 1,403 939830FZ
0% 7/1/10, (BIG Insured) Aaa 6,940 2,681 939830GJ
0% 7/1/11, (BIG Insured) Aaa 4,000 1,445 939830GK
0% 7/1/12, (BIG Insured) Aaa 4,000 1,365 939830GL
0% 7/1/13, (BIG Insured) Aaa 4,000 1,285 939830GA
0% 7/1/14, (BIG Insured) Aaa 3,350 1,018 939830GM
Rfdg. Series B, 7.125% 7/1/16 Aa 14,250 16,582 939830HJ
Rfdg. Series C, 0% 7/1/14 Aa 6,405 1,896 939830QC
7.65% 7/1/12 (a)(f) Aa 20,500 19,142 939830PR
94,211
WEST VIRGINIA - 0.6 %
West Virginia Parkway Econ. Dev. & Tourism
Auth. Series C, 9.20% 5/15/13,
(FGIC Insured) (a)(f) Aaa 10,000 10,550 956661BN
West Virginia School Bldg. Auth. Rev. (Cap. Impt.)
Series A, 6.75% 7/1/15 A 2,000 2,150 956540DM
12,700
WYOMING - 1.2 %
Natrona County Hosp. Rev. (Wyoming Med. Ctr.
Proj.) 8.125% 9/15/10 Baa1 4,500 5,113 638813AK
Wyoming Commty. Dev. Auth. Single Family Mtg.
Series B, 7.40% 6/1/31, (FHA Guaranteed) Aa 2,700 2,903 983219VA
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
WYOMING - CONTINUED
Wyoming Farm Loan Board Cap. Facs. Rev.:
Rfdg.:
6.20% 10/1/07 AA- $ 965 $ 1,038 983478CF
6.25% 10/1/08 AA- 1,015 1,090 983478CG
6.25% 10/1/12 AA- 2,000 2,112 983478CH
5.75% 10/1/20 AA- 7,000 7,228 983478CJ
0% 10/1/04 AA- 3,995 2,277 983478BL
0% 10/1/05 AA- 3,995 2,162 983478BM
0% 10/1/06 AA- 3,945 2,012 983478BN
25,935
TOTAL MUNICIPAL BONDS
(Cost $1,895,432) 2,045,465
MUNICIPAL NOTES (A) - 2.8 %
FLORIDA - 0.1 %
Dade County Health Facs. Auth. Hosp. Rev.
(Miami Childrens Hosp. Proj.) Series 1990,
2.35%, LOC Barnett Bank, VRDN VMIG1 2,100 2,100 233904KQ
GEORGIA - 0.1 %
Hapeville Dev. Auth. Ind. Dev. Rev. (Hapeville
Hotel Proj.) 2.35%, LOC Swiss Bank, VRDN P-1 1,200 1,200 411368AA
ILLINOIS - 0.2 %
Illinois Health Facs. Auth. Rev. (LaGrange Mem.
Health Sys.) Series 1990, 1.90%, LOC First
Nat'l. Bank of Chicago, VRDN VMIG1 4,300 4,300 45201HK2
INDIANA - 0.9 %
Indiana Health Facs. Fin. Auth. Rev. (Cap. Access
Designated Pooled) Series 1992, 2.20%,
LOC Comerica Bank, VRDN VMIG1 1,700 1,700 454798CR
Indiana Hosp. Equip. Fing. Auth. Rev.
Series 1985 A, 2.10%, (MBIA Insured)
BPA Bank of New York, VRDN VMIG1 17,500 17,500 454800AF
19,200
LOUISIANA - 0.1 %
Louisiana Pub. Facs. Auth. Dev. Rev. Ind. Dev.
(Kenner Hotel Ltd.) 2%, LOC Long-Term Cr.
Bank of Japan, VRDN - 2,850 2,850 546396WB
MUNICIPAL NOTES (A) - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (G) AMOUNT (000S) (000S)
MARYLAND - 0.0 %
Maryland Health & Higher Edl. Facs. Rev. (Pooled
Loan Prog.) Series A, 2.60% LOC Dai-Ichi
Kangyo Bank Ltd., VRDN VMIG 1 $ 800 $ 800 574215RC
MASSACHUSETTS - 0.4 %
Massachusetts Health & Edl. Facs. Auth. Rev.
(Cap. Asset Prog.) Series 1985 D, 2.15%,
(MBIA Insured) BPA Sanwa Bank, VRDN VMIG 1 9,000 9,000 575850MP
MICHIGAN - 0.1 %
Farmington Hills Hosp. Fin. Auth. Hosp. Rev.
(Botsford Hosp.) 1.90%, (MBIA Insured) BPA
Manufacturers Nat'l. Corp., Detroit, VRDN VMIG 1 2,200 2,200 311166AV
MINNESOTA - 0.3 %
Minnesota Higher Ed. Coordinating Board Rev.
(Supplemental Student Loan Prog.) Series 1984,
2.425%, LOC Mitsubishi Bank Ltd., VRDN - 2,410 2,410 604147BW
Minnesota Gen. Oblig. 2.35%, VRDN - 3,000 3,000
5,410
NEW JERSEY - 0.3 %
Hudson County Impt. Auth. Rev. (Essential Purp.
Pooled Gov't. Loan Prog.) Series 1986, 2.45%,
LOC Marine Midland Bank, VRDN A-1 3,645 3,645 443728AB
New Jersey Tpk. Auth. Tpk. Rev. Series 1991 D,
2.20%, (FGIC Insured) BPA Societe Generale,
VRDN VMIG 1 2,200 2,200 646139JR
5,845
OHIO - 0.1 %
Ohio State Univ. Rev. (Gen. Receipts)
Series 1986 B, 2.10%, BPA Fuji Bank, VRDN VMIG 1 1,000 1,000 677653QZ
PENNSYLVANIA - 0.2 %
Quakertown Hosp. Auth. Hosp. Rev. (HPS Group
Pooled Fing. Prog.) Series 1985 A, 2.35%,
LOC First Nat'l. Bank of Chicago, VRDN VMIG 1 2,000 2,000 747523AP
Schuylkill County Ind. Dev. Auth. Resources
Recovery Rev. (Westwood Energy Prop.)
Series 1985, 2.10%, LOC Fuji Bank, VRDN P-1 2,600 2,600 80839TAA
4,600
TOTAL MUNICIPAL NOTES
(Cost $58,505) 58,505
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,953,937) $ 2,103,970
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
(000S) (000S)
PURCHASED
215 Municipal Bond Index
Futures Contracts Dec. 1993 $ 21,876 $ (98)
THE VALUE OF FUTURES CONTRACTS PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 1.0%
SOLD
270 U.S. Treasury Note Futures Contracts Dec. 1993 $ 30,603 $ 251
THE VALUE OF FUTURES CONTRACTS SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 1.5%
SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Security collateralized by an amount sufficient to pay interest and
principal.
3. Debt obligation initially issued in zero coupon form which converts to
coupon
form at a specified rate and date.
4. Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
5. A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $17,779,000.
6. Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate multiplied by a specified
factor. If the floating rate is high enough, the coupon rate may be zero or
be a negative amount that is carried forward to reduce future interest
and/or principal payments. The price may be considerably more volatile than
the price of a compara- ble fixed rate security.
7. Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S S&P
RATINGS RATINGS
Aaa, Aa, A 53.2% AAA, AA, A 60.7%
Baa 14.1% BBB 12.5%
Ba 5.0% BB 3.0%
B 1.6% B 2.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 11.9%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities is as follows:
Health Care 27.9%
Electric Revenue 19.1
General Obligation 10.7
Others (individually less
than 10%) 42.3
TOTAL 100.0%
INCOME TAX INFORMATION
At November 30, 1993, the aggregate cost of investment securities for
income tax purposes was $1,953,985,000. Net unrealized appreciation
aggregated $149,985,000, of which $167,588,000 related to appreciated
investment securities and $17,603,000 related to depreciated investment
securities.
At November 30, 1993, the fund was required to defer $37,933,000 of losses
on futures contracts.
The fund hereby designates $8,400,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) NOVEMBER 30, 1993
ASSETS
Investment in securities, at value (cost $1,953,937) $ 2,103,970
(Note 1) - See accompanying schedule
Cash 1,986
Receivable for investments sold 18,863
Interest receivable 35,194
Other receivables 204
TOTAL ASSETS 2,160,217
LIABILITIES
Payable for investments purchased $ 18,097
Payable for fund shares redeemed 10,117
Dividends payable 2,788
Accrued management fee 737
Other payables and accrued expenses 288
TOTAL LIABILITIES 32,027
NET ASSETS $ 2,128,190
Net Assets consist of:
Paid in capital $ 1,926,817
Accumulated undistributed net realized gain (loss) on 51,187
investments
Net unrealized appreciation (depreciation) on:
Investment securities 150,033
Futures contracts 153
NET ASSETS, for 160,919 shares outstanding $ 2,128,190
NET ASSET VALUE, offering price and redemption price per $13.23
share ($2,128,190 (divided by) 160,919 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED NOVEMBER 30, 1993
INTEREST INCOME $ 138,518
EXPENSES
Management fee (Note 4) $ 8,997
Transfer agent, accounting and custodian fees and 2,662
expenses (Note 4)
Non-interested trustees' compensation 5
Registration fees 81
Audit 57
Legal 198
Reports to shareholders 61
Miscellaneous 34
TOTAL EXPENSES 12,095
NET INTEREST INCOME 126,423
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(NOTES 1 AND 3)
Net realized gain (loss) on:
Investment securities 93,406
Futures contracts (17,281) 76,125
Change in net unrealized appreciation (depreciation) on:
Investment securities 39,130
Futures contracts 941 40,071
NET GAIN (LOSS) 116,196
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 242,619
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEARS ENDED NOVEMBER 30,
1993 1992
INCREASE (DECREASE) IN NET ASSETS
Operations $ 126,423 $ 130,302
Net interest income
Net realized gain (loss) on investments 76,125 18,201
Change in net unrealized appreciation (depreciation) 40,071 12,077
on
investments
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 242,619 160,580
FROM OPERATIONS
Distributions to shareholders from: (126,423) (130,302)
Net interest income
Net realized gain (30,740) (25,098)
Share transactions 820,243 732,349
Net proceeds from sales of shares
Reinvestment of distributions from: 92,165 95,370
Net interest income
Net realized gain 24,493 20,035
Cost of shares redeemed (969,090) (774,639)
Net increase (decrease) in net assets resulting from (32,189) 73,115
share transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS 53,267 78,295
NET ASSETS
Beginning of period 2,074,923 1,996,628
End of period $ 2,128,190 $ 2,074,923
OTHER INFORMATION
Shares
Sold 62,985 57,784
Issued in reinvestment of distributions from: 7,044 7,529
Net interest income
Net realized gain 1,953 1,595
Redeemed (74,180) (61,095)
Net increase (decrease) (2,198) 5,813
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED NOVEMBER 30,
1993 1992 1991 1990 1989
SELECTED PER-SHARE DATA
Net asset value, $ 12.720 $ 12.690 $ 12.610 $ 12.800 $ 12.210
beginning of period
Income from .764 .811 .845 .857 .893
Investment
Operations
Net interest income
Net realized and .700 .190 .310 .200 .600
unrealized gain
(loss) on
investments
Total from 1.464 1.001 1.155 1.057 1.493
investment
operations
Less Distributions (.764) (.811) (.845) (.857) (.893)
From net interest
income
From net realized (.190) (.160) (.230) (.390) (.010)
gain on
investments
Total distributions (.954) (.971) (1.075) (1.247) (.903)
Net asset value, end $ 13.230 $ 12.720 $ 12.690 $ 12.610 $ 12.800
of period
TOTAL RETURN 11.92% 8.21% 9.62% 8.91% 12.60%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 2,128 $ 2,075 $ 1,997 $ 1,784 $ 1,738
period (in millions)
Ratio of expenses to .56% .57% .56% .57% .58%
average net assets
Ratio of net interest 5.85% 6.40% 6.72% 6.96% 7.10%
income to average
net assets
Portfolio turnover rate 53% 47% 44% 58% 71%
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the period ended November 30, 1993
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity High Yield Tax-Free Portfolio (the fund) is a fund of Fidelity
Court Street Trust(the trust) and is authorized to issue an unlimited
number of shares. The trust is registered under the Investment Company Act
of 1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days are valued either at amortized cost or original
cost plus accrued interest, both of which approximate current value.
Securities for which quotations are not readily available through the
pricing service are valued at their fair value as determined in good faith
under consistently applied procedures under the general supervision of the
Board of Trustees.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net interest income. Distributions from realized gains, if
any, are recorded on the ex-dividend date.
2. OPERATING POLICIES.
FUTURES CONTRACTS AND OPTIONS. The fund may invest in futures contracts and
write options. These investments involve, to varying degrees, elements of
market risk and risks in excess of the amount recognized in the Statement
of Assets and Liabilities. The face or contract amounts reflect the extent
of the involvement the fund has in the particular classes of instruments.
Risks may be caused by an imperfect correlation between movements in the
price of the instruments and the price of the underlying securities and
interest rates. Risks also may arise if there is an illiquid secondary
market for the instruments, or due to the inability of counterparties to
perform.
2. OPERATING POLICIES -
CONTINUED
FUTURES CONTRACTS AND OPTIONS - CONTINUED
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $1,094,544,000 and $1,141,054,000, respectively.
The market value of futures contracts opened and closed amounted to
$1,683,982,000 and $1,854,623,000 respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates ranging from
.15% to .37% and is based on the monthly average net assets of all the
mutual funds advised by FMR. The annual individual fund fee rate is .25%.
For the period, the management fee was equivalent to an annual rate of .42%
of average net assets.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .1325% to .3700%. Effective November 1, 1993, FMR has
voluntarily agreed to implement this new group fee rate schedule as it
results in the same or a lower management fee.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $13,000 for the
period.
TRANSFER AGENT AND ACCOUNTING FEES. United Missouri Bank, N.A. (the Bank)
is the custodian and transfer and shareholder servicing agent for the fund.
The Bank has entered into a sub-
contract with Fidelity Service Co. (FSC), an affiliate of FMR, under which
FSC performs the activities associated with the fund's transfer and
shareholder servicing agent and accounting functions. The fund pays
transfer agent fees based on the type, size, number of accounts and number
of transactions made by shareholders. FSC pays for
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
typesetting, printing and mailing of all shareholder reports, except proxy
statements. The accounting fee is based on the level of average net assets
for the month plus out-of-pocket expenses. For the period, FSC received
transfer agent and accounting fees amounting to $1,960,000 and $537,000,
respectively.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Court Street Trust and the Shareholders of
Fidelity High Yield Tax-Free Portfolio:
We have audited the accompanying statement of assets and liabilities of
Fidelity Court Street Trust: Fidelity High Yield Tax-Free Portfolio,
including the schedule of portfolio investments, as of November 30, 1993,
and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the
period 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. 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 November 30, 1993, 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 audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Court Street Trust: Fidelity High Yield Tax-Free Portfolio as
of November 30, 1993, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years
in the period then ended, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND
Boston, Massachusetts
December 31, 1993
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
1. For quotes on funds you own.
2. For an individual fund quote.
3. For the ten most frequently
requested Fidelity fund quotes.
4. For quotes on Fidelity Select
Portfolios.(Registered trademark)
5. To change your Personal
Identification Number (PIN).
6. To speak with a Fidelity
representative.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
1. For balances on funds you own.
2. For your most recent fund activity
(purchases, redemptions, and
dividends).
3. To change your Personal
Identification Number (PIN).
4. To speak with a Fidelity
representative.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
32 West Central Boulevard
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8300 Boone Boulevard
Vienna, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
TO WRITE FIDELITY
Please locate the address that is closest to you. We'll give your
correspondence immediate attention and send you written confirmation upon
completion of your request. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
FIDELITY TAX-FREE BOND FUNDS
Aggressive Tax-Free
California Tax-Free High Yield
California Tax-Free Insured
High Yield Tax-Free
Insured Tax-Free
Limited Term Municipals
Massachusetts Tax-Free High Yield
Michigan Tax-Free High Yield
Minnesota Tax-Free
Municipal Bond
New York Tax-Free High Yield
New York Tax-Free Insured
Ohio Tax-Free High Yield
Spartan Aggressive Municipal
Spartan California Municipal High Yield
Spartan Connecticut Municipal High Yield
Spartan Florida Municipal Income
Spartan Intermediate Municipal
Spartan Maryland Municipal Income
Spartan Municipal Income
Spartan New Jersey Municipal High Yield
Spartan New York Municipal High Yield
Spartan Pennsylvania Municipal High Yield
Spartan Short-Intermediate Municipal
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
You may be among the many bond fund investors who has enjoyed strong
returns in recent years. Falling interest rates and rising bond prices have
provided an unusually positive climate for bonds. Interest rates have
fallen to new lows with a key benchmark - the yield on 30-year Treasury
bonds - falling from about 9% in 1988 to below 6% in September of this
year.
For many people with bank accounts or other interest-bearing investments,
low rates have meant less income. To find higher yields, many of us moved
out of short-term investments into bond funds which have longer maturities
(the time remaining until a bond's principal is repaid). From 1988 through
1992, municipal bond funds averaged annual total returns - their yields
plus changes in share price - of 9.5%, according to Lipper Analytical
Services. This was above historical averages, which have been more in the 6
- - 8% range.
The question we'd all like answered is: what's ahead? Interest rates could
drop more or stay where they are, but they also could reverse course and
head back up. Just as falling rates translated into rising bond prices, so
rising rates would cause bond prices to fall. The longer a bond's maturity,
the greater the potential for price changes. The chart below, which
compares the price returns of long-term municipal bonds (15+ year
maturities) and three-year municipal bonds, shows this. Since 1980, there
have been two periods when long-term municipal bond prices fell more than
1.5%. From December 31, 1979 to December 31, 1981, they declined 35.18%.
Then in 1987 they fell 6.15%, while three-year municipal bond prices
declined only 2.87%.
It's important to know in advance how a change in interest rates might
affect your investment. If you're in a long-term bond fund, you've probably
been earning a high yield. If interest rates were to rise substantially,
you would run the risk of losing some of the money you had originally
invested. The table on the next page shows what could happen if you owned a
30-year municipal bond with a yield of 5.7%. If interest
PRICE CHANGES: LONG-TERM VS. SHORT-TERM MUNICIPAL BONDS
Lehman Brothers Lehman Brothers 3-Year
Municipal Bond Index General Obligation Index
* THROUGH OCTOBER 31, 1993
NOTE: LEHMAN BROTHERS 3-YEAR G.O. INDEX BEGAN 12/31/84
Row: 1, Col: 1, Value: 8.69
Row: 1, Col: 2, Value: 2.25
Row: 2, Col: 1, Value: -6.149999999999999
Row: 2, Col: 2, Value: -2.84
Row: 3, Col: 1, Value: -8.950000000000001
Row: 3, Col: 2, Value: -3.7
Row: 4, Col: 1, Value: -9.33
Row: 4, Col: 2, Value: -0.52
Row: 5, Col: 1, Value: -16.15
Row: 5, Col: 2, Value: 0.0
Row: 6, Col: 1, Value: -19.03
Row: 6, Col: 2, Value: 0.0
Row: 7, Col: 1, Value: 26.98
Row: 7, Col: 2, Value: 0.0
Row: 8, Col: 1, Value: -1.01
Row: 8, Col: 2, Value: 0.0
Row: 9, Col: 1, Value: 0.6300000000000001
Row: 9, Col: 2, Value: 0.0
Row: 10, Col: 1, Value: 10.02
Row: 10, Col: 2, Value: 0.8700000000000001
Row: 11, Col: 1, Value: 10.48
Row: 11, Col: 2, Value: 4.37
Row: 12, Col: 1, Value: -6.149999999999999
Row: 12, Col: 2, Value: -2.87
Row: 13, Col: 1, Value: 1.81
Row: 13, Col: 2, Value: -2.43
Row: 14, Col: 1, Value: 2.77
Row: 14, Col: 2, Value: 0.7100000000000001
Row: 15, Col: 1, Value: -0.53
Row: 15, Col: 2, Value: -0.19
Row: 16, Col: 1, Value: 4.45
Row: 16, Col: 2, Value: 2.73
Row: 17, Col: 1, Value: 1.67
Row: 17, Col: 2, Value: 0.17
Row: 18, Col: 1, Value: 5.63
Row: 18, Col: 2, Value: 0.17
%
rates rose one percentage point, the bond's price would fall by about
12.7%. (A price return of -12.7% plus an income return of +5.7% gives you a
total return of -7.0%.)
Ask yourself now how much share price change you can tolerate. Your answer
will depend in part on your goal, in part on what role this investment
plays in your overall financial strategy. Many investors try to line up the
time they plan to be invested with the maturity of their bond fund. For
example, if you have a longer-term goal - like saving for retirement 10 or
more years away - you may be willing to ride out the markets ups and downs
in exchange for the higher returns of a longer-term fund.
If you decide you can't tolerate the potential share price fluctuations in
a longer-term bond fund, you may want to move to a fund with a shorter
maturity and a lower yield. Recently, the yield on a three-year municipal
bond, for example, has been close to 4.0%. If interest rates rose one
percentage point, the note's price would fall by only about 1.9%. An income
return of +4.0% would offset the price return of -1.9%, giving you a total
return of 2.1%. This is close to current yields on tax-exempt money market
funds, but gives you added return potential if interest rates either fall
or remain unchanged.
Finally, if you're uncomfortable with any share price changes, consider a
tax-exempt money market fund, which is managed - but not guaranteed - to
maintain a stable $1 share price. Although a money market fund is not
insured, its yield will vary with interest rates. So if rates rise, your
yield should too.
The foundation of successful investing is making the right choice for your
situation. We're here to help by providing you with whatever information
you need to make an informed decision. Please call us at 1-800-544-8888 if
you'd like a copy of our COMMON SENSE GUIDE TO TAX-FREE INVESTING or if
you'd like to speak with one of our representatives. We look forward to
hearing from you.
Wishing you a prosperous new year,
Edward C. Johnson 3d, Chairman
Edward C. Johnson 3d
HOW INTEREST RATES AFFECT BOND RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY INTEREST RATES INTEREST RATES INTEREST RATES
UNCHANGED UP 1% DOWN 1%
Short-term bond (3 years) +4.0% +2.1% +5.9%
Intermediate-term municipal bond (10 +5.0% -1.9% +12.5%
years)
Long-term municipal bond (30 years) +5.7% -7.0% +21.5%
</TABLE>
THIS TABLE SHOWS THE ESTIMATED TOTAL RETURN OF MUNICIPAL BONDS WITH VARYING
MATURITIES, ASSUMING THAT OVER THE NEXT YEAR INTEREST RATES REMAIN THE
SAME, OR GO UP OR DOWN ONE PERCENTAGE POINT FROM CURRENT LEVELS. TOTAL
RETURN INCLUDES YIELD (INCOME RETURN) PLUS CHANGES IN PRICE (PRICE RETURN).
THE RETURNS ABOVE ARE BASED ON YIELDS OF 4.0% FOR THREE-YEAR MUNICIPAL
BONDS, 5.0% FOR 10-YEAR MUNICIPAL BONDS, AND 5.7% FOR 30-YEAR MUNICIPAL
BONDS. THESE RETURNS DO NOT REFLECT THE PAST OR FUTURE PERFORMANCE OF ANY
FIDELITY FUND. FIDELITY FUNDS ARE NOT INSURED OR GUARANTEED BY THE U.S.
GOVERNMENT.
