SPARTAN(registered trademark) NEW JERSEY MUNICIPAL HIGH YIELD PORTFOLIO
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED JANUARY 16, 1995
The following replaces the corresponding section under the heading "Special
Factors Affecting New Jersey" beginning on page 8.
$305.9 million is provided in the fiscal 1995 Appropriations Act as the
State's contributions to public retirement plans. The Fiscal Year 1995
Appropriations Act includes various changes enacted by the State
Legislature to the pension systems. Between March 31 and July 1, 1993,
independent actuaries reported that the market value of all assets of the
retirement funds was $38.0 billion compared to a $33.7 billion
accrued liability, representing a funding level of 112.6% calculated under
the traditional approach of book value of assets to projected accrued
liability. The present value of projected benefits is $41.3 billion; the
funding level for projected benefits is 91.9%.
The following tables replace those found in the section entitled
"Performance" beginning on page 11.
Having determined your effective tax bracket, use the following table to
determine the tax-equivalent yield for a given tax-free yield.
If your effective combined federal and state personal tax rate in 1995
is:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
29.53% 30.14% 31.06% 32.33% 35.15% 35.54% 39.85% 40.21% 43.57%
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
To match these
tax-free rates: Your taxable investment would have to earn the following yield:
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2.0% 2.84% 2.86% 2.90% 2.96% 3.08% 3.10% 3.33% 3.35% 3.54%
3.0% 4.26% 4.29% 4.35% 4.43% 4.63% 4.65% 4.99% 5.02% 5.32%
4.0% 5.68% 5.73% 5.80% 5.91% 6.17% 6.21% 6.65% 6.69% 7.09%
5.0% 7.10% 7.16% 7.25% 7.39% 7.71% 7.76% 8.31% 8.36% 8.86%
6.0% 8.51% 8.59% 8.70% 8.87% 9.25% 9.31% 9.98% 10.04% 10.63%
7.0% 9.93% 10.02% 10.15% 10.34% 10.79% 10.86% 11.64% 11.71% 12.40%
</TABLE>
NJTB-95-1 February 1, 1995
