SPARTAN (registered trademark)
MUNICIPAL INCOME
FUND
ANNUAL REPORT
NOVEMBER 30, 1998
(2_FIDELITY_LOGOS)(REGISTERED TRADEMARK)
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
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 past six months.
INVESTMENTS 11 A complete list of the fund's
investments with their
market values.
FINANCIAL STATEMENTS 61 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 65 Notes to the financial
statements.
REPORT OF INDEPENDENT 70 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 71
Third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
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.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(PHOTO_OF_EDWARD_C_JOHNSON_3D)
DEAR SHAREHOLDER:
The month of November proved to be a strong one for the stock and bond
markets. The Dow Jones Industrial Average reached a record high.
Merger activity, which had lulled during the summer correction, has
increased significantly. Small-cap stocks posted their third
consecutive month of positive returns, as did emerging markets. While
bond returns generally were not at the levels of their equity
counterparts, they were mostly positive nonetheless.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
The longer your investment time frame, the less likely it is that you
will be affected by short-term market volatility. A 10-year investment
horizon appropriate for saving for a college education, for example,
enables you to weather market cycles in a long-term fund, which may
have a higher risk potential, but also has a higher potential rate of
return.
An intermediate-length fund could make sense if your investment
horizon is two to four years, while a short-term bond fund could be
the right choice if you need your money in one or two years.
If your time horizon is less than a year, you might want to consider
moving some of your bond investment into a money market fund. These
funds seek income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that there is no assurance that a money market fund will
achieve its goal of maintaining a stable net asset value of $1.00 per
share, and that these types of funds are neither insured nor
guaranteed by any agency of the U.S. government.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-8888, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you the information you need to make the
investments that are right for you.
Best regards,
Edward C. Johnson 3d
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. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). You can also look at the fund's income, as
reflected in the fund's yield, to measure performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1998 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
SPARTAN MUNICIPAL INCOME 7.54% 33.24% 116.91%
LB Municipal Bond 7.76% 37.76% 121.93%
General Municipal Debt Funds 6.82% 32.72% 112.83%
Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. You can compare the fund's returns to the performance of the
Lehman Brothers Municipal Bond Index - a market value-weighted index
of investment-grade municipal bonds with maturities of one year or
more. To measure how the fund's performance stacked up against its
peers, you can compare it to the general municipal debt funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Analytical Services, Inc. The past one year average
represents a peer group of 240 mutual funds. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effect
of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1998 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
SPARTAN MUNICIPAL INCOME 7.54% 5.91% 8.05%
LB Municipal Bond 7.76% 6.62% 8.30%
General Municipal Debt Funds 6.82% 5.82% 7.83%
Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a different figure than that
obtained by averaging the cumulative total returns and annualizing the
result.)
$10,000 OVER 10 YEARS
Spartan Municipal Income LB Municipal Bond
00037 LB015
1988/11/30 10000.00 10000.00
1988/12/31 10192.72 10102.30
1989/01/31 10336.51 10311.22
1989/02/28 10273.98 10193.56
1989/03/31 10295.15 10169.20
1989/04/30 10627.35 10410.62
1989/05/31 10852.16 10626.85
1989/06/30 10957.61 10771.16
1989/07/31 11037.47 10917.76
1989/08/31 10988.51 10810.87
1989/09/30 10941.60 10778.65
1989/10/31 11056.17 10910.48
1989/11/30 11260.37 11101.41
1989/12/31 11354.00 11192.22
1990/01/31 11234.36 11139.28
1990/02/28 11381.45 11238.42
1990/03/31 11394.33 11241.79
1990/04/30 11189.37 11160.40
1990/05/31 11498.11 11404.03
1990/06/30 11620.90 11504.27
1990/07/31 11800.80 11673.39
1990/08/31 11678.05 11503.89
1990/09/30 11766.15 11510.45
1990/10/31 11922.54 11719.25
1990/11/30 12263.39 11954.92
1990/12/31 12316.14 12006.92
1991/01/31 12476.55 12168.06
1991/02/28 12554.65 12273.92
1991/03/31 12595.04 12278.34
1991/04/30 12767.36 12441.64
1991/05/31 12879.81 12552.25
1991/06/30 12880.49 12539.82
1991/07/31 13067.61 12692.55
1991/08/31 13183.05 12859.72
1991/09/30 13288.41 13027.15
1991/10/31 13413.36 13144.39
1991/11/30 13442.63 13181.07
1991/12/31 13569.51 13463.93
1992/01/31 13708.80 13494.63
1992/02/29 13736.86 13498.95
1992/03/31 13750.32 13503.94
1992/04/30 13881.80 13624.13
1992/05/31 14015.03 13784.48
1992/06/30 14209.36 14015.79
1992/07/31 14573.91 14435.98
1992/08/31 14379.94 14295.23
1992/09/30 14418.54 14388.72
1992/10/31 14178.47 14247.28
1992/11/30 14546.42 14502.45
1992/12/31 14703.93 14650.52
1993/01/31 14909.71 14820.90
1993/02/28 15458.43 15356.98
1993/03/31 15346.44 15194.65
1993/04/30 15492.42 15347.97
1993/05/31 15582.33 15434.22
1993/06/30 15811.63 15691.82
1993/07/31 15817.13 15712.38
1993/08/31 16160.82 16039.51
1993/09/30 16394.55 16222.20
1993/10/31 16411.82 16253.51
1993/11/30 16279.71 16110.31
1993/12/31 16631.66 16450.40
1994/01/31 16814.57 16638.26
1994/02/28 16386.25 16207.33
1994/03/31 15628.07 15547.37
1994/04/30 15709.27 15679.21
1994/05/31 15807.18 15815.15
1994/06/30 15717.71 15718.52
1994/07/31 16014.34 16006.64
1994/08/31 16072.51 16062.02
1994/09/30 15833.74 15826.23
1994/10/31 15503.00 15545.16
1994/11/30 15019.31 15264.10
1994/12/31 15392.73 15600.07
1995/01/31 15917.46 16045.92
1995/02/28 16378.11 16512.53
1995/03/31 16421.02 16702.26
1995/04/30 16429.24 16721.97
1995/05/31 16941.66 17255.57
1995/06/30 16680.93 17105.44
1995/07/31 16801.67 17267.60
1995/08/31 17007.42 17486.56
1995/09/30 17138.64 17597.25
1995/10/31 17385.10 17853.11
1995/11/30 17714.57 18149.29
1995/12/31 17883.12 18323.71
1996/01/31 18031.21 18462.05
1996/02/29 17956.42 18337.43
1996/03/31 17726.40 18103.08
1996/04/30 17654.26 18051.85
1996/05/31 17658.93 18044.63
1996/06/30 17867.82 18241.13
1996/07/31 18036.04 18407.13
1996/08/31 18040.63 18402.71
1996/09/30 18252.30 18660.35
1996/10/31 18467.43 18871.40
1996/11/30 18846.14 19216.74
1996/12/31 18767.37 19136.03
1997/01/31 18785.67 19172.20
1997/02/28 18948.47 19348.20
1997/03/31 18703.02 19090.29
1997/04/30 18857.91 19250.08
1997/05/31 19124.75 19539.60
1997/06/30 19359.04 19747.69
1997/07/31 19909.92 20294.71
1997/08/31 19707.55 20104.54
1997/09/30 19944.29 20343.18
1997/10/31 20058.05 20473.99
1997/11/30 20168.93 20594.38
1997/12/31 20498.78 20894.85
1998/01/31 20727.93 21110.49
1998/02/28 20705.21 21116.82
1998/03/31 20707.69 21135.40
1998/04/30 20592.79 21040.08
1998/05/31 20907.67 21373.14
1998/06/30 20989.17 21457.36
1998/07/31 21040.27 21511.21
1998/08/31 21357.96 21843.56
1998/09/30 21641.25 22115.73
1998/10/31 21625.41 22115.29
1998/11/30 21690.54 22192.91
IMATRL PRASUN SHR__CHT 19981130 19981210 122919 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Spartan Municipal Income Fund on November 30, 1988. As the
chart shows, by November 30, 1998, the value of the investment would
have grown to $21,691 - a 116.91% increase on the initial investment.
For comparison, look at how the Lehman Brothers Municipal Bond Index
did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 would have grown to $22,193 - a 121.93%
increase.
(checkmark)UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally 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.
TOTAL RETURN COMPONENTS
YEARS ENDED NOVEMBER 30,
1998 1997 1996 1995 1994
Dividend returns 5.00% 5.32% 5.30% 6.54% 7.54%
Capital returns 2.54% 1.70% 1.09% 11.41% -15.28%
Total returns 7.54% 7.02% 6.39% 17.95% -7.74%
TOTAL RETURN COMPONENTS include both dividend returns and capital
returns. A dividend return reflects the actual dividends paid by the
fund. A capital return reflects both the amount paid by the fund to
shareholders as capital gain distributions and changes in the fund's
share price. Both returns assume the dividends or capital gains, if
any, paid by the fund are reinvested.
DIVIDENDS AND YIELD
PERIODS ENDED NOVEMBER 30, 1998 PAST 1 MONTH PAST 6 MONTHS PAST 1 YEAR
Dividends per share 4.87(cents) 30.05(cents) 60.72(cents)
Annualized dividend rate 4.63% 4.69% 4.77%
30-day annualized yield 4.04% - -
30-day annualized 6.31% - -
tax-equivalent yield
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
$12.81 over the past one month, $12.77 over the past six months and
$12.73 over the past one year, you can compare the fund's income over
these three 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, but does not reflect payment of the federal
alternative minimum tax, if applicable.
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Prospects were bright for
fixed-income markets at the
beginning of the 12-month period
ending November 30, 1998, with
positive U.S. economic news and
the Federal Reserve Board's
reluctance to raise interest rates
playing key roles. However,
near-record issuance of municipal
bonds, greeted by only moderate
enthusiasm, continued to contribute
to their underperformance relative
to taxable bonds. For the 12-month
period, the Lehman Brothers
Municipal Bond Index - a popular
measure of the municipal bond
market - returned 7.76%. By
comparison, the Lehman Brothers
Aggregate Bond Index - a widely
followed measure of taxable bond
performance - returned 9.45%
during the period. Year-to-date
municipal bond issuance of over
$253 billion has already exceeded
all of last year's total, and is on
track to top the record $293 billion
muni-bond issuance during 1993.
Despite the tepid demand, munis
were yielding at the end of the
period about the same as 30-year
Treasuries - the safe haven of
choice during the market's
downdraft in the late summer and
early fall. While the recent equity
rally has put further pressure on
municipal bond prices, their yields
are historically high, which may
stimulate demand in the near term.
Munis, like the majority of
fixed-income issues, also have been
bolstered by three recent
interest-rate cuts by the Federal
Reserve Board, which dropped the
fed funds rate to 4.75%.
(photograph of George Fischer)
An interview with George Fischer, Portfolio Manager of Spartan
Municipal Income Fund.
Q. HOW DID THE FUND PERFORM, GEORGE?
A. For the 12-month period that ended November 30, 1998, the fund had
a total return of 7.54%. To get a sense of how the fund did relative
to its competitors, the general municipal debt funds average returned
6.82% for the same one-year period, according to Lipper Analytical
Services. Additionally, the Lehman Brothers Municipal Bond Index -
which tracks the types of securities in which the fund invests -
returned 7.76% for the same 12-month period.
Q. WHAT FACTORS HELPED THE FUND OUTPACE ITS PEERS?
A. One factor was the fund's relatively large stake in
intermediate-term bonds with maturities of between five and 15 years,
which I emphasized because I felt they offered the best combination of
reward - or income - for the risk. For bonds with maturities up to
about 15 years, investors were paid an appropriate amount of added
income for each additional year of maturity. But for bonds with
maturities of 15 years or longer, the extra income for each successive
year was, in my opinion, less attractive given the level of risk
inherent in longer-term bonds. Throughout the past six months,
intermediate-maturity bond prices rose more in percentage terms than a
combination of longer- and shorter-term bonds. Another factor I
believe helped the fund's performance was that I kept its duration -
or sensitivity to interest-rate changes - in line with the market as a
whole as represented by the Lehman Brothers Municipal Bond Index. By
doing so, I avoided positioning the fund incorrectly based on a
prediction about the direction of interest rates.
Q. WERE THERE ANY DISAPPOINTMENTS OVER THE PAST 12 MONTHS?
A. After leading the market during the first half of the past year,
Baa-rated bonds lagged the overall municipal market during much of the
second half of the year. Amid concerns over the weakening state of the
world's economy and the potential for an economic slowdown in the
U.S., investors gravitated toward higher-quality investments of all
kinds. In the case of the municipal market, that flight to quality
translated into stronger demand for the higher-rated Aaa, Aa and A
securities, and a dwindling demand for the lower-rated Baa securities.
Q. THAT SAID, THE FUND MAINTAINED A HIGH OVERALL CREDIT QUALITY, WITH
ABOUT 87% OF ITS INVESTMENTS IN BONDS RATED AAA, AA OR A, AT THE END
OF THE PERIOD. WHAT EXPLAINS THAT POSITIONING?
A. I generally didn't think that most Baa-rated bonds offered enough
incremental yield to compensate for their added risk. Of course, an
issuer's credit rating reflects an assessment of its ability to make
interest and principal payments on its debt; the lower the rating, the
riskier the issuer. Over the past year or so, Baa-rated bonds offered
only about 25 to 45 basis points (0.25% to 0.45%) more in yield than
Aaa-rated bonds. That "spread" was particularly small from a
historical viewpoint during much of the period. More recently,
however, the spread has widened and in some cases afforded me
opportunities to buy fairly high-yielding Baa-rated securities at
attractive prices.
Q. WHAT OTHER CHANGES HAVE YOU MADE RECENTLY?
A. I sold some of the fund's industrial development bonds. These bonds
are issued through a municipality to finance a fixed asset for a
purpose deemed in the public interest, such as a road to a new
corporate facility or the expansion of an airline terminal. Because
they depend on a corporation's ability to pay the bond's interest and
principal, the performance of industrial development bonds is tied to
the health of that corporation. Given the growing uncertainty over
corporate profitability in the wake of the slowing global economy, I
cut the fund's holdings in this area.
Q. GEORGE, WHAT'S YOUR OUTLOOK FOR THE MUNICIPAL MARKET?
A. As a result of economic turmoil overseas, U.S. Treasuries -
considered a safe haven against global uncertainty - rallied
substantially and far outpaced the performance of municipals. The net
result is that municipals are as cheap - relative to Treasuries - as
they have been in nearly a decade. For example, the yield on a
Aaa-related insured 30-year municipal bond was about 100% of the
yield of a comparable maturity U.S. Treasury bond. From a historical
standpoint, such a municipal typically yields about 85% of Treasuries.
Since bond yields and bond prices move in the opposite direction,
municipals should gain ground on their Treasury counterparts if the
yield spread ratio between Treasuries and municipals moves closer to
that historical 85% average.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
GEORGE FISCHER ON GENERAL
OBLIGATION BONDS:
"General obligation bonds (GOs)
were the fund's largest sector
concentration throughout the
past year. A GO is backed by the
full faith and credit - which
includes the taxing power - of a
city, county, state or other issuer.
GOs are repaid through general
revenues - including individual
and corporate taxes - collected
by the issuer. When the economy is
strong, general revenues and tax
collections tend to increase as
corporate profits rise, employment
grows and wages move higher. In
1998, New York showed particularly
fast growth, which helped make its
bonds some of the municipal
market's best performers during the
year. On the other hand, while
California's prospects remained
strong, I sold some of the fund's
holdings in bonds issued in the
state, because I felt that the state's
economic ties to the
recession-plagued Far East would
place continued pressure on its
economic and fiscal health. When
evaluating investments for the
fund, I look for GO issuers located
in regions with strong or
improving economic conditions."
(checkmark)FUND FACTS
GOAL: a high level of income
free from federal tax
FUND NUMBER: 037
TRADING SYMBOL: FHIGX
START DATE: December 1, 1977
SIZE: as of November 30,
1998, more than $4.6
billion
MANAGER: George Fischer,
since 1998; manager, various
Fidelity and Spartan
municipal income funds;
joined Fidelity in 1989
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP FIVE STATES AS OF
NOVEMBER 30, 1998
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE HOLDINGS 6 MONTHS AGO
New York 16.2 17.7
Texas 10.1 10.1
California 8.2 10.8
Massachusetts 7.5 8.0
Illinois 6.5 5.6
TOP FIVE SECTORS AS OF
NOVEMBER 30, 1998
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE SECTORS 6 MONTHS AGO
General Obligations 27.1 27.8
Electric Utilities 16.2 15.1
Transportation 12.1 11.7
Health Care 9.0 8.8
Escrowed/Pre-Refunded 8.8 7.1
AVERAGE YEARS TO MATURITY AS
OF NOVEMBER 30, 1998
6 MONTHS AGO
Years 13.3 13.2
</TABLE>
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY
DOLLAR AMOUNT.
DURATION AS OF NOVEMBER 30,
1998
6 MONTHS AGO
Years 6.6 6.5
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION
(MOODY'S RATINGS)
AS OF NOVEMBER 30, 1998
Aaa 56.2%
Aa, A 30.6%
Baa 10.2%
Not Rated 2.3%
Short-term
investments 0.7%
Row: 1, Col: 1, Value: 55.3
Row: 1, Col: 2, Value: 30.6
Row: 1, Col: 3, Value: 10.2
Row: 1, Col: 4, Value: 2.3
Row: 1, Col: 5, Value: 1.4
AS OF MAY 31, 1998
Aaa 50.0%
Aa, A 37.2%
Baa 9.0%
Not Rated 2.0%
Short-term
investments 1.8%
Row: 1, Col: 1, Value: 49.6
Row: 1, Col: 2, Value: 37.2
Row: 1, Col: 3, Value: 9.0
Row: 1, Col: 4, Value: 2.2
Row: 1, Col: 5, Value: 2.0
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
AMOUNTS SHOWN ARE AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
INVESTMENTS NOVEMBER 30, 1998
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS - 99.3%
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
ALABAMA - 0.4%
Alabama Bldg. Renovation Fin. A2 $ 5,000 $ 5,394
Auth. Rev. 7.45% 9/1/11
Cullman Med. Park South Med. Baa2 4,000 4,251
Clinic Board Rev. Rfdg.
(Cullman Reg'l. Med. Ctr.)
Series A, 6.5% 2/15/23
Huntsville Gen. Oblig. Rfdg. Aa3 2,200 2,382
Series D, 6% 8/1/08
Mobile Wtr. & Swr. A 5,100 5,522
Commissioners Wtr. & Swr.
Rev. Rfdg. 6.5% 1/1/09
17,549
ALASKA - 1.3%
Alaska Student Ln. Corp.
Student Ln. Rev.:
(State Assisted) Series A, 6% Aaa 2,500 2,610
7/1/04 (AMBAC Insured)
Series A:
5.15% 7/1/05 (AMBAC Insured) Aaa 1,500 1,566
5.55% 7/1/03 (AMBAC Insured) Aaa 1,300 1,357
5.65% 7/1/04 (AMBAC Insured) Aaa 1,300 1,371
5.9% 7/1/03 (AMBAC Insured) Aaa 1,070 1,117
7.3% 7/1/00 (AMBAC Insured) Aaa 4,600 4,815
North Slope Borough (Cap.
Appreciation):
Series A:
0% 6/30/01 (MBIA Insured) Aaa 5,000 4,542
0% 6/30/01 (MBIA Insured) Aaa 1,400 1,272
Series B:
0% 1/1/02 (MBIA Insured) Aaa 16,000 14,241
0% 1/1/03 (MBIA Insured) Aaa 9,675 8,237
0% 6/30/05 (CGIC Insured) Aaa 2,500 1,902
(FSA Insured)
Valdez Marine Term. Rev. Rfdg.:
(BP Pipeline, Inc. Proj.) Aa2 11,000 11,110
Series B, 5.5% 10/1/28
(Mobil Oil Co./Alaska Aa2 7,000 7,192
Pipeline) 5.75% 11/1/28
61,332
ARIZONA - 1.3%
Arizona Trans. Board Hwy.
Rev. Sub-Series A:
6.25% 7/1/04 Aa 2,000 2,134
6.6% 7/1/08 (Pre-Refunded to Aaa 3,000 3,261
7/1/01 @ 101.5) (i)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
ARIZONA - CONTINUED
Chandler Gen. Oblig. Rfdg.:
(Cap. Appreciation):
0% 7/1/05 (FGIC Insured) Aaa $ 5,700 $ 4,383
0% 7/1/08 (FGIC Insured) Aaa 1,700 1,133
7.375% 7/1/09 (FGIC Insured) Aaa 1,000 1,263
Maricopa County School Aaa 2,660 2,045
District #1 Rfdg. (Cap.
Appreciation) (Phoenix
Elementary) 2nd Series, 0%
7/1/05 (MBIA Insured)
Maricopa County Unified Aaa 3,050 2,148
School District #69 Rfdg.
(Cap. Appreciation)
(Paradise Valley) 2nd Series
0% 7/1/07 (AMBAC Insured)
Maricopa County Cmnty. Aa1 19,000 20,301
College District Series B,
5.25% 7/1/10
Maricopa County Hosp. Rev.
Rfdg. (Sun Health Corp.):
5.4% 4/1/05 Baa1 2,935 3,062
5.65% 4/1/06 Baa1 3,625 3,848
Maricopa County Ind. Dev. A2 3,345 3,336
Auth. Health Facilities Rev.
(Catholic Health West Proj.)
Series A, 4% 7/1/02
Maricopa County Ind. Dev. Aaa 2,000 2,501
Auth. Hosp. Facilities Rev.
Rfdg. (Samaritan Health
Svcs.) Series A, 7% 12/1/16
(MBIA Insured)
Phoenix Gen. Oblig. Rfdg. 6% Aa1 1,840 1,975
7/1/02
Pima County Ctfs. of Prtn.:
4.75% 1/1/04 (MBIA Insured) Aaa 2,060 2,139
4.9% 1/1/06 (MBIA Insured) Aaa 2,000 2,085
Pima County Unified School Aaa 2,000 2,399
District #1 (Tucson Proj.)
Series 1989 G, 8% 7/1/04
(MBIA Insured)
Tucson Gen. Oblig. Rfdg. 7.5% Aa3 2,525 2,763
7/1/01
60,776
ARKANSAS - 0.5%
Arkansas Dev. Fin. Auth. Rev. A 4,500 4,861
(Cap. Asset) Series B, 7.1%
3/1/08
Arkansas Gen. Oblig.:
(Cap. Appreciation) (College
Savings Proj.) Series A:
0% 6/1/03 Aa3 1,280 1,073
0% 6/1/04 Aa3 1,110 889
Series C, 0% 6/1/05 Aa3 2,130 1,634
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
ARKANSAS - CONTINUED
Little Rock Arpt. Passenger Aaa $ 2,465 $ 2,723
Facilities Charge Rev. 5.65%
5/1/16 (AMBAC Insured) (h)
North Little Rock Elec. Rev.
Rfdg. Series A:
6.15% 7/1/03 (MBIA Insured) Aaa 3,245 3,577
6.5% 7/1/10 (MBIA Insured) Aaa 3,840 4,530
Pulaski County Health Aaa 1,750 2,039
Facilities Board Rev. Rfdg.
(Sisters Charity
Nazareth-Saint Vincents
Infirmary) 6.05% 11/1/09
(MBIA Insured) (Escrowed to
Maturity) (i)
Rogers Sales & Use Tax Rev. A1 1,580 1,593
5% 11/1/15
22,919
CALIFORNIA - 8.2%
California Dept. of Wtr. Aa2 4,000 3,995
Resources Central Valley
Proj. Rev. (Wtr. Sys.)
Series O, 5% 12/1/22
California Ed. Facilities
Auth. Rev.:
(Stanford Univ.) Series N, Aaa 10,525 10,759
5.2% 12/1/27
(Univ. of Southern Aa2 4,410 4,457
California) Series C, 5.125%
10/1/28
Rfdg. (Stanford Univ.) Series Aaa 9,000 9,126
O, 5.125% 1/1/31
California Gen. Oblig.:
5.25% 10/1/13 Aa3 5,000 5,228
5.25% 10/1/17 Aa3 1,500 1,541
6% 10/1/09 Aa3 5,250 6,054
6.3% 9/1/10 Aa3 4,000 4,747
7% 10/1/06 Aa3 8,975 10,777
7% 10/1/09 Aa3 1,000 1,234
California Hsg. Fin. Agcy.
Rev.:
(Home Mtg. Single Family) Aa2 187 41
Series A, 0% 2/1/15
(Home Mtg.):
Series B, 5.2% 8/1/26 (MBIA Aaa 3,830 3,911
Insured) (h)
Series G:
5.9% 2/1/09 (MBIA Insured) (h) Aaa 1,000 1,062
5.9% 8/1/09 (MBIA Insured) (h) Aaa 2,000 2,123
Series R, 6.15% 8/1/27 (MBIA Aaa 4,500 4,763
Insured) (h)
Rfdg. (Home Mtg.) Series A:
5.3% 8/1/14 (MBIA Insured) Aaa 2,740 2,759
5.7% 8/1/16 (MBIA Insured) Aaa 2,825 2,894
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Poll. Cont. Fing. Baa3 $ 5,235 $ 5,619
Auth. Resource Recovery Rev.
(Waste Mgmt., Inc.) Series
A, 7.15% 2/1/11 (h)
California Pub. Wks. Board
Lease Rev.:
(Cmnty. College Proj.) Series A 5,000 5,636
A, 6% 10/1/14 (Pre-Refunded
to 10/1/04 @ 102) (i)
(Dept. of Corrections State A1 1,500 1,535
Prison D-Susanville) Series
D 5.375% 6/1/18
(Dept. of Corrections State A1 2,500 2,722
Prison, Medera) Series E,
5.5% 6/1/15
(Substance Abuse Treatment Aaa 3,750 4,034
Facilities Corcoran II)
Series A, 5.5% 1/1/14 (AMBAC
Insured)
(Various California Univ. A1 7,500 7,770
Proj.) Series A, 5.25%
12/1/13
(Various Comnty. College A1 2,415 2,607
Proj.) Series A, 5.5%
12/1/08
Rfdg.:
(California Cmnty. Colleges)
Series D:
5.375% 3/1/11 A 3,000 3,200
5.375% 3/1/12 A 1,500 1,588
(California Univ. Proj.) A1 5,755 6,191
Series A, 5.5% 10/1/13
(Dept. of Corrections State A1 2,500 2,646
Prison, Montery County)
Series D, 5.375% 11/1/13
(Dept. of Corrections State Aaa 1,450 1,482
Prisons) Series A, 5%
12/1/19 (AMBAC Insured)
(State Archives Bldg. A1 5,000 5,418
Complex) Series A, 5.375%
12/1/10
California Rural Home Mtg. Aaa 15,500 15,717
Fin. Auth. Lease Rev. (Rural
Lease Purp.) Series A, 4.45%
8/1/01 (MBIA Insured)
California Statewide Cmntys.
Dev. Auth. Ctfs. of Prtn.:
(J. Paul Getty Trust) 5% Aaa 3,695 3,690
10/1/23
(Sisters Charity Leavenworth) Aa3 2,750 2,763
5% 12/1/14
Castaic Lake Wtr. Agcy. Ctfs.
of Prtn. Rfdg. (Wtr. Sys.
Impt. Proj.) Series A:
7% 8/1/11 (MBIA Insured) Aaa 1,475 1,847
7.25% 8/1/09 (MBIA Insured) Aaa 1,800 2,264
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Chino Basin Reg'l. Fing. Aaa $ 2,245 $ 2,776
Auth. Rev. Rfdg. (Muni.
Wtr. District Swr. Sys.
Proj.) 7% 8/1/09 (AMBAC
Insured)
Compton Comnty. Redev. Agcy. Aaa 4,000 4,631
Rfdg. (Tax
Allocation-Compton Redev.)
Series A, 6.5% 8/1/13 (CGIC
Insured) (FSA Insured)
Duarte Gen. Oblig. Ctfs. of Baa1 22,250 23,516
Prtn. (City of Hope Med.
Ctr.) 6.25% 4/1/23
Foothill/Eastern Trans. Baa3 8,000 6,355
Corridor Agcy. Toll Road
Rev. (Cap. Appreciation)
Series A, 0% 1/1/08 (b)
La Quinta Redev. Agcy. Tax. Aaa 470 611
Allocation Rfdg. (Redev.
Proj. Area #1) 7.3% 9/1/12
(MBIA Insured)
Long Beach Hbr. Dept.:
Rfdg. Series A, 6% 5/15/13 Aaa 6,700 7,697
(FGIC Insured) (h)
5.125% 5/15/18 (h) Aa3 5,000 5,029
6% 5/15/06 (MBIA Insured) (h) Aaa 3,000 3,392
8% 5/15/04 (MBIA Insured) (h) Aaa 6,305 7,548
8.5% 5/15/03 (MBIA Insured) Aaa 6,235 7,411
(h)
Los Angeles County Pub. Works Aaa 6,000 6,154
Fing. Auth. Lease Rev.
(Multiple Cap. Facilities
Proj. #4) 4.75% 12/1/10
(MBIA Insured)
Los Angeles County
Metropolitan Trans. Auth.
Rev.:
(Proposition A) 1st Tier Sr. Aaa 2,245 2,502
Series A, 5.9% 7/1/14 (MBIA
Insured)
Rfdg.:
(Gen. Union Station) Series Aaa 4,355 4,574
A, 5.2% 7/1/12 (FSA Insured)
(Proposition A) 2nd Tier, Aaa 3,380 3,671
5.625% 7/1/13 (MBIA Insured)
M-S-R Pub. Pwr. Agcy. Rev. Aaa 1,685 1,836
(San Juan Proj.) Series E,
6.5% 7/1/05 (MBIA Insured)
Metropolitan Wtr. District Aa2 13,430 13,413
Southern California Wtrwks.
Rev. Series A, 5% 7/1/26
Modesto Irrigation District Aaa 4,390 5,982
Elec. Rev. Series A, 9.625%
1/1/11 (Escrowed to
Maturity) (i)
Northern California Pwr.
Agcy. Pub. Pwr. Rev. Rfdg.
(Geothermal Proj. #3) Series
A:
5.8% 7/1/09 (AMBAC Insured) Aaa 6,000 6,800
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Northern California Pwr.
Agcy. Pub. Pwr. Rev. Rfdg.
(Geothermal Proj. #3) Series
A: - continued
5.85% 7/1/10 (AMBAC Insured) Aaa $ 4,000 $ 4,575
Placer County Wtr. Agcy. Rev.
(Middle Fork Proj.) Series A:
3.75% 7/1/12 A+ 7,820 7,187
3.75% 1/1/13 A+ 1,500 1,338
Pleasant Hill Joint Powers Aaa 1,490 1,532
Fing. Auth. Lease Rev. (Cap.
Impt. Prog.) Series A, 5%
12/1/12 (MBIA Insured)
Sacramento Cogeneration Auth.
Cogeneration Proj. Rev.
(Procter & Gamble Proj.):
6.375% 7/1/10 BBB- 700 781
6.375% 7/1/10 (Pre-Refunded BBB- 800 924
to 7/1/05 @ 102) (i)
Sacramento Pwr. Auth.
Cogeneration Proj. Rev.:
6.5% 7/1/07 BBB- 1,000 1,151
6.5% 7/1/09 BBB- 2,200 2,489
San Francisco City & County Aaa 10,000 10,929
Swr. Rev. Rfdg. 5.9% 10/1/08
(AMBAC Insured)
San Francisco Bldg. Auth. A1 5,500 5,745
Lease Rev. (Dept. Gen. Svcs.
Lease) Series A, 5% 10/1/13
San Francisco City & County
Arpt. Commision Int'l. Arpt.
Rev.:
2nd Series, Issue 10 A:
5.5% 5/1/13 (MBIA Insured) (h) Aaa 5,955 6,367
5.55% 5/1/14 (MBIA Insured) Aaa 5,875 6,285
(h)
2nd Series, Issue 15 A, 4.6% Aaa 4,215 4,246
5/1/11 (FSA Insured) (h)
Rfdg. 2nd Series Issue 2, Aaa 1,000 1,134
6.75% 5/1/13 (MBIA Insured)
San Francisco City & County Aaa 3,960 4,398
Gen. Oblig. Rfdg. Series 1,
5.5% 6/15/09 (FGIC Insured)
Santa Clara County Fing. Aaa 1,000 1,291
Auth. Lease Rev. (VMC
Replacement Proj.) Series A,
7.75% 11/15/08 (AMBAC
Insured)
Santa Clara Redev. Agcy. Tax Aaa 4,000 4,910
Allocation Rfdg. (Bayshore
North Proj.) 7% 7/1/10
(AMBAC Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Santa Margarita/Dana Point Aaa $ 1,045 $ 1,330
Auth. Rev. (Impt. Dists.
1&2-2A&8) Series A, 7.25%
8/1/10 (MBIA Insured)
Santa Rosa Wastewtr. Rev. Aaa 3,900 3,853
(Rfdg. & SubReg'l. Wastewtr.
Proj.) Series A, 4.75%
9/1/16 (FGIC Insured)
South Orange County Pub.
Fing. Auth. Spl. Tax Rev.:
(Foothill Area) Series C:
7.5% 8/15/06 (FGIC Insured) Aaa 8,140 10,019
8% 8/15/08 (FGIC Insured) Aaa 2,500 3,261
(Senior Lien) Series A, 7% Aaa 3,490 4,375
9/1/11 (MBIA Insured)
Southern California Pub. Pwr. Aaa 7,145 7,412
Auth. Pwr. Proj. Rev. Rfdg.
(Palo Verde Proj.) Series A,
5% 7/1/02 (FSA Insured) (c)
Upland Gen. Oblig. Rfdg. (San A 4,000 4,138
Antonio Comnty. Hosp.)
5.25% 1/1/08
West & Central Basin Fing.
Auth. Rev.:
(West Basin Rfdg. Proj.) Aaa 5,750 5,873
Series A, 5% 8/1/13 (AMBAC
Insured)
Series C, 5.25% 8/1/08 (AMBAC Aaa 6,100 6,499
Insured)
378,140
COLORADO - 4.2%
Adams County School District Aaa 1,000 1,091
#12 Rfdg. 6.2% 12/15/10
(FGIC Insured)
Arapaho County Cap. Impt.
Trust Fund Hwy. Rev. (Cap.
Appreciation):
Series C:
0% 8/31/15 (Pre-Refunded to Aaa 16,000 5,916
8/31/05 @ 48.6181) (i)
0% 8/31/26 (Pre-Refunded to Aaa 242,300 38,446
8/31/05 @ 20.862) (i)
Series E 470, 0% 8/31/10 Aaa 15,000 8,151
(Pre-Refunded to 8/31/05 @
71.4501) (i)
Aurora Gen. Oblig. Rfdg. A1 3,040 3,033
4.75% 11/1/14
Colorado Health Facilities
Auth. Rev.:
(Swedish Med. Ctr.) Series A, Aaa 1,000 1,086
7.25% 10/1/08 (Pre-Refunded
to 10/1/00 @ 102) (i)
Rfdg. (Rocky Mountain
Adventist):
6.25% 2/1/04 Baa2 2,500 2,638
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
COLORADO - CONTINUED
Colorado Health Facilities
Auth. Rev.: - continued
Rfdg. (Rocky Mountain
Adventist):
6.625% 2/1/13 Baa2 $ 23,100 $ 24,649
6.625% 2/1/22 Baa2 8,600 9,177
Colorado Springs Arpt. Rev.
(Cap. Appreciation) Series C:
0% 1/1/02 (MBIA Insured) Aaa 1,550 1,383
0% 1/1/04 (MBIA Insured) Aaa 1,530 1,253
0% 1/1/06 (MBIA Insured) Aaa 250 188
0% 1/1/09 (MBIA Insured) Aaa 1,655 1,070
0% 1/1/10 (MBIA Insured) Aaa 1,500 918
Colorado Univ. Co. Hosp. Aaa 1,000 1,110
Auth. Rev. Series A, 6.25%
11/15/12 (AMBAC Insured)
(Pre-Refunded to 11/15/02 @
102) (i)
Colorado Univ. Rev. A2 5,725 6,399
(Biomedical Research Bldg.
Proj.) 7% 6/1/09
Denver City & County Arpt.
Rev.:
(Cap. Appreciation):
Series A:
0% 11/15/02 (MBIA Insured) (h) Aaa 4,900 4,199
0% 11/15/05 (MBIA Insured) (h) Aaa 4,480 3,357
Series D:
0% 11/15/03 (MBIA Insured) (h) Aaa 5,000 4,098
0% 11/15/04 (MBIA Insured) (h) Aaa 7,500 5,868
0% 11/15/05 (MBIA Insured) (h) Aaa 3,000 2,248
(Unrefunded Balance):
Series A, 8.75% 11/15/23 Baa1 10,000 11,337
Series B, 7.25% 11/15/23 (h) Baa1 1,870 2,061
Rfdg. Series E, 5.5% 11/15/25 Aaa 3,000 3,149
(MBIA Insured)
Series A:
7% 11/15/99 (h) Baa1 6,750 6,953
8.5% 11/15/23 (h) Baa1 15,080 16,500
Series C:
6.5% 11/15/06 (h) Baa1 4,075 4,407
6.55% 11/15/02 (h) Baa1 4,000 4,301
Series D:
7% 11/15/25 (h) Baa1 6,980 7,441
7.4% 11/15/01 (h) Baa1 3,000 3,245
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
COLORADO - CONTINUED
El Paso County School Aaa $ 2,600 $ 1,744
District #20 Rfdg. (Cap.
Appreciation) Series A, 0%
6/15/08 (AMBAC Insured)
Highlands Ranch Metro.
District #2 Rfdg.:
6.5% 6/15/10 (CGIC Insured) Aaa 1,000 1,194
(FSA Insured)
6.5% 6/15/12 (CGIC Insured) Aaa 1,000 1,204
(FSA Insured)
Jefferson County Ctfs. of Aaa 3,000 3,315
Prtn. Rfdg. 6.65% 12/1/08
(MBIA Insured) (d)
193,129
CONNECTICUT - 0.3%
Connecticut Health & Edl.
Facilities Auth. Rev.:
(New Britain Memorial Hosp.) - 3,985 4,437
Series A, 7.5% 7/1/06
(Pre-Refunded to 7/1/02 @
102) (i)
Rfdg.:
(Quinnipiac College) Series BBB- 1,250 1,287
D, 6% 7/1/13
(Saint Raphael Hosp.) Series H:
5.25% 7/1/12 (AMBAC Insured) Aaa 3,035 3,264
5.3% 7/1/10 (AMBAC Insured) Aaa 2,990 3,245
Connecticut Resource Recovery Aaa 2,100 2,263
Auth. Rfdg. (Mid Connecticut
Sys.) Series A, 5.375%
11/15/10 (MBIA Insured)
Eastern Connecticut Resource BBB+ 900 916
Recovery Auth. Solid Waste
Rev. (Wheelabrator Lisbon
Proj.) Series A, 5% 1/1/04
(h)
15,412
DISTRICT OF COLUMBIA - 2.5%
District of Columbia Gen.
Oblig.:
Rfdg.:
Series A 1:
6% 6/1/11 (MBIA Insured) Aaa 2,850 3,217
6% 6/1/11 (MBIA Insured) Aaa 150 171
(Escrowed to Maturity) (i)
Series A 3:
5.3% 6/1/04 (AMBAC Insured) Aaa 3,250 3,444
5.3% 6/1/04 (AMBAC Insured) Aaa 160 170
(Escrowed to Maturity) (i)
5.4% 6/1/05 (AMBAC Insured) Aaa 2,775 2,959
5.4% 6/1/05 (AMBAC Insured) Aaa 135 145
(Escrowed to Maturity) (i)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
DISTRICT OF COLUMBIA -
CONTINUED
District of Columbia Gen.
Oblig.: - continued
Rfdg.:
Series A:
5.625% 6/1/02 (MBIA Insured) Aaa $ 1,390 $ 1,468
5.625% 6/1/02 (MBIA Insured) Aaa 110 117
(Escrowed to Maturity) (i)
5.875% 6/1/05 (AMBAC Insured) Aaa 3,600 3,935
5.875% 6/1/05 (AMBAC Insured) Aaa 285 314
(Escrowed to Maturity) (i)
5.875% 6/1/05 (MBIA Insured) Aaa 2,780 3,039
5.875% 6/1/05 (MBIA Insured) Aaa 220 242
(Escrowed to Maturity) (i)
6% 6/1/05 (AMBAC Insured) Aaa 3,695 4,065
Series B 3, 5.3% 6/1/05 (MBIA Aaa 5,000 5,304
Insured)
Series B:
5% 6/1/06 (MBIA Insured) Aaa 12,225 12,793
5.25% 6/1/07 (MBIA Insured) Aaa 15,000 15,986
Series C:
5.25% 12/1/03 (FGIC Insured) Aaa 1,910 2,019
5.25% 12/1/03 (FGIC Insured) Aaa 260 275
(Escrowed to Maturity) (i)
Series A, 5% 6/1/06 (MBIA Aaa 7,400 7,744
Insured)
Series E:
5% 6/1/04 (FGIC Insured) Aaa 965 1,009
5% 6/1/04 (FGIC Insured) Aaa 35 37
(Pre-Refunded to 6/1/03 @
102) (i)
District of Columbia Hosp. - 11,815 12,759
Rev. (Hosp. for Sick
Children) Series A, 8.875%
1/1/21
District of Columbia Redev.
Land Agcy. Washington D.C.
Sports Arena Spl. Tax Rev.:
5.4% 11/1/00 Baa 1,000 1,022
5.625% 11/1/10 Baa 9,480 9,873
District of Columbia Rev.
Rfdg. (Georgetown Univ.)
Series A:
5.95% 4/1/14 (MBIA Insured) Aaa 2,000 2,230
6% 4/1/18 (MBIA Insured) Aaa 13,835 15,331
Metropolitan Washington Arpt. Aaa 3,000 3,221
Gen. Aprt. Rev. Series A,
7.25% 10/1/10 (FGIC Insured)
(h)
Washington D.C. Metropolitan Aaa 3,800 3,894
Area Trans. Auth. Gross Rev.
Rfdg. 5.25% 7/1/14 (FGIC
Insured)
116,783
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
FLORIDA - 2.3%
Broward County Resource A3 $ 15,180 $ 16,138
Recovery Rev. (SES Broward
Co. LP South Proj.) 7.95%
12/1/08
Dade County Aviation Rev. Aaa 3,750 4,114
(Miami Int'l Arpt.) Series
B, 6% 10/1/24 (MBIA Insured)
(h)
Dade County School District Aaa 8,000 8,708
Series 1995, 5.5% 8/1/12
(MBIA Insured) (Pre-Refunded
to 8/1/04 @ 101) (i)
Dade County Wtr. & Swr. Sys. Aaa 4,755 4,986
Rev. 5.5% 10/1/25 (FGIC
Insured)
Florida Div. Board Fin. Dept. Aaa 4,750 5,194
Gen. Svcs. Rev. (Dept. of
Natural
Resources-Preservation 2000)
Series A, 6.25% 7/1/10 (MBIA
Insured) (Pre-Refunded to
7/1/02 @ 101) (i)
Florida Gen. Oblig. Rfdg. Aa2 4,355 4,541
(Sr. Lien-Jacksonville
Trans.) 5% 7/1/11
Florida Muni. Pwr. Agcy. Rev. Aaa 3,000 2,875
Rfdg. (Stanton II Proj.)
4.5% 10/1/16 (AMBAC Insured)
Jacksonville Elec. Auth. Rev.:
(1st Installment) 6% 7/1/01 Aaa 3,080 3,171
(Escrowed to Maturity) (i)
(3rd Installment) Series 73, Aaa 3,000 3,504
6.8% 7/1/12 (Escrowed to
Maturity) (i)
Rfdg. (St. Johns River Pwr. Aa2 4,535 4,757
Park Sys.) 5.375% 10/1/16
Jacksonville Health Baa1 2,000 2,199
Facilities Auth. Ind. Dev.
Rev. Rfdg. (Cypress Village
Proj./Nat'l. Benevolent
Assoc.) 7% 12/1/22
Jacksonville Port Auth. Rev.
Rfdg.:
5.5% 11/1/06 (MBIA Insured) Aaa 9,595 10,196
(h)
5.75% 11/1/09 (MBIA Insured) Aaa 1,000 1,116
(h)
Lakeland Elec. & Wtr. Rev. Aaa 5,000 5,766
Rfdg. (Junior Sub-Lien)
6.5% 10/1/05 (FGIC Insured)
Orange County Tourist Dev. Aaa 5,000 5,552
Tax Rev. Rfdg. Series A,
6.5% 10/1/10 (AMBAC Insured)
Orlando Util. Commission Wtr. Aa2 5,465 5,504
& Elec. Rev. Series B, 5.25%
10/1/23
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
FLORIDA - CONTINUED
Pasco County Solid Waste
Disp. & Resource Recovery
Sys. Rev.:
Rfdg. 6% 4/1/09 (AMBAC Aaa $ 8,090 $ 9,130
Insured) (h)
6% 4/1/08 (AMBAC Insured) (h) Aaa 5,000 5,629
Pinellas County Resource Aaa 4,010 4,277
Recovery Rev. 5.25% 10/1/05
(MBIA Insured) (h)
107,357
GEORGIA - 1.9%
Atlanta Wtr. & Swr. Rev. Aaa 30,775 31,265
5.25% 1/1/27 (FGIC Insured)
Atlanta Arpt. Facilities Rev. Aaa 16,820 18,832
Rfdg. 6.25% 1/1/05 (AMBAC
Insured)
Atlanta Downtown Dev. Auth.
Rev. Rfdg. (Underground
Atlanta Proj.):
6.25% 10/1/12 Aa3 3,750 4,055
6.25% 10/1/16 Aa3 3,000 3,234
Fulton County School Dist Aa2 4,500 5,309
Rfdg. 6.375% 5/1/14
Fulton County Wtr. & Swr.
Rev. Rfdg.:
6.125% 1/1/05 (FGIC Insured) Aaa 3,750 4,173
6.375% 1/1/14 (FGIC Insured) Aaa 140 164
6.375% 1/1/14 (FGIC Insured) Aaa 4,360 5,126
(Escrowed to Maturity) (i)
Georgia Gen. Oblig. Series B:
6.1% 3/1/05 Aaa 2,000 2,244
7.2% 3/1/05 Aaa 3,000 3,538
Georgia Muni. Elec. Auth.
Pwr. Rev.:
Rfdg. Series Z, 5.5% 1/1/12 A 2,000 2,152
Series B, 6.2% 1/1/10 (AMBAC Aaa 5,000 5,790
Insured)
85,882
HAWAII - 0.6%
Hawaii Arpt. Sys. Rev. 2nd
Series:
7.5% 7/1/05 (FGIC Insured) (h) Aaa 1,000 1,072
7.5% 7/1/20 (FGIC Insured) (h) Aaa 1,500 1,612
Hawaii Gen. Oblig.:
Series CM, 5.5% 12/1/02 (FGIC Aaa 2,625 2,783
Insured)
6% 9/1/02 A1 5,555 5,949
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
HAWAII - CONTINUED
Hawaii Hsg. Fin. & Dev. Corp. Aa1 $ 7,000 $ 7,045
Single Family Mtg. Rev.
Series A, 4.9% 7/1/28 (h)
Honolulu City & County Rfdg. Aaa 7,135 7,680
Series C, 5.5% 11/1/04
(FGIC Insured)
26,141
IDAHO - 0.1%
Boise Urban Renewal Agcy. BBB+ 1,230 1,248
Parking Rev. Series A B C,
8.125% 9/1/15
Idaho Falls Rfdg.:
0% 4/1/06 (FGIC Insured) Aaa 2,000 1,493
0% 4/1/07 (FGIC Insured) Aaa 2,500 1,786
0% 4/1/13 (FGIC Insured) Aaa 1,500 778
5,305
ILLINOIS - 6.5%
Chicago Residential Mtg. Rev. Aaa 6,840 3,237
Rfdg. (Cap. Appreciation)
Series B, 0% 10/1/09 (MBIA
Insured)
Chicago Board of Ed. (Chicago
School Reform):
5.75% 12/1/20 (AMBAC Insured) Aaa 3,480 3,706
5.75% 12/1/27 (AMBAC Insured) Aaa 20,000 21,495
6.25% 12/1/11 (MBIA Insured) Aaa 1,000 1,166
Chicago Gen. Oblig.:
Rfdg.:
Series A 2:
6.125% 1/1/12 (AMBAC Insured) Aaa 10,000 11,495
6.25% 1/1/15 (AMBAC Insured) Aaa 4,885 5,684
Series B:
5% 1/1/11 (AMBAC Insured) Aaa 2,200 2,293
5.125% 1/1/15 (AMBAC Insured) Aaa 2,250 2,336
Series 1993, 5.25% 1/1/18 Aaa 6,200 6,250
(FGIC Insured)
Chicago Midway Arpt. Rev.:
Series A, 5.5% 1/1/29 (MBIA Aaa 24,775 25,926
Insured)
Series B:
5.25% 1/1/13 (MBIA Insured) Aaa 2,910 3,010
(h)
5.25% 1/1/14 (MBIA Insured) Aaa 3,060 3,143
(h)
6% 1/1/05 (MBIA Insured) (h) Aaa 1,360 1,491
6% 1/1/08 (MBIA Insured) (h) Aaa 2,170 2,405
6% 1/1/10 (MBIA Insured) (h) Aaa 2,435 2,675
6.125% 1/1/11 (MBIA Insured) Aaa 2,580 2,856
(h)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
ILLINOIS - CONTINUED
Chicago Motor Fuel Tax Rfdg. Aaa $ 4,000 $ 4,244
Series A, 5.375% 1/1/14
(AMBAC Insured)
Chicago O'Hare Int'l. Arpt.
Rev.:
(Passenger Facility Charge) Aaa 4,500 4,846
Series A, 5.6% 1/1/10
(AMBAC Insured)
Rfdg. (Gen. Arpt. 2nd Lien)
Series A:
5.5% 1/1/16 (AMBAC Insured) Aaa 10,000 10,403
(h)
6.25% 1/1/09 (AMBAC Insured) Aaa 6,730 7,562
(h)
6.375% 1/1/12 (MBIA Insured) Aaa 4,000 4,501
6.375% 1/1/15 (MBIA Insured) Aaa 14,900 16,639
Chicago O'Hare Int'l. Arpt.
Spl. Facilities Rev.:
(American Airlines, Inc. Baa1 4,720 5,081
Proj.) Series A, 7.875%
11/1/25 (h)
(United Airlines, Inc.) 8.25% Baa2 1,025 1,040
5/1/99 (h)
Rfdg. (Int'l. Term.) Series A 4,500 4,775
A, 7.5% 1/1/17 (MBIA
Insured) (h)
Chicago Park District Rfdg. Aaa 4,380 5,040
6.25% 1/1/09 (FGIC Insured)
Chicago Wastewtr. Aaa 4,500 4,819
Transmission Rev. Rfdg.
5.375% 1/1/13 (FGIC Insured)
Chicago Wtr. Rev. Rfdg. (Cap. Aaa 1,960 1,756
Appreciation) 0% 11/1/01
(FGIC Insured)
Cooke & Will Counties 2 Aaa 2,350 1,928
Township High School Dist
#206 (Cap. Appreciation)
Series A, 0% 12/1/03 (AMBAC
Insured) (Escrowed to
Maturity) (i)
De Kalb Single Family Mtg. Aaa 1,225 1,340
Rev. Series A, 7.45%
12/1/09, LOC Govt. Nat'l.
Mortgage Assoc. (h)
Illinois Dedicated Tax Rev.
(Civic Ctr.) Series A:
7% 12/15/13 (AMBAC Insured) Aaa 1,805 1,950
7% 12/15/13 (AMBAC Insured) Aaa 695 756
(Pre-Refunded to 12/15/00 @
102) (i)
Illinois Dev. Fin. Auth. Aaa 7,000 8,028
Poll. Cont. Rev. Rfdg.
(Commerce Edison Co. Proj.)
Series D, 6.75% 3/1/15
(AMBAC Insured)
Illinois Health Facilities
Auth. Rev.:
(GlenOaks Med. Ctr.) Series Baa 3,265 3,651
D, 9.5% 11/15/15 (Escrowed
to Maturity) (i)
(Memorial Hosp.):
6.875% 5/1/00 (Escrowed to - 600 615
Maturity) (i)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
ILLINOIS - CONTINUED
Illinois Health Facilities
Auth. Rev.: - continued
(Memorial Hosp.):
7.125% 5/1/10 (Pre-Refunded - $ 4,000 $ 4,499
to 5/1/02 @ 102) (i)
(Methodist Health Svcs. Co.) Aaa 7,000 7,636
6.903% 5/18/21 (AMBAC
Insured) (Pre-Refunded to
5/8/01 @ 102) (i)
Rfdg.:
(Lutheran Gen. Health Care
Sys.) Series C:
6% 4/1/18 A1 3,000 3,294
7% 4/1/14 A1 1,500 1,813
(OSF Healthcare Sys.) 6% A2 7,000 7,487
11/15/13
(Swedish American Hosp.) Aaa 3,000 3,113
5.375% 11/15/13 (AMBAC
Insured)
Illinois Reg'l. Trans. Auth.:
Series A, 8% 6/1/17 (AMBAC Aaa 4,500 6,178
Insured)
Series C, 7.75% 6/1/13 (FGIC Aaa 2,045 2,703
Insured)
Series D:
7.75% 6/1/04 (FGIC Insured) Aaa 1,115 1,314
7.75% 6/1/05 (FGIC Insured) Aaa 2,405 2,890
Lake County Forest
Preservation District (Cap.
Appreciation):
0% 12/1/07 Aa2 10,440 7,158
0% 12/1/08 Aa2 12,505 8,214
Metropolitan Pier &
Exposition Auth. Dedicated
Tax Rev.:
(Cap. Appreciation):
Series A:
0% 6/15/09 Aaa 14,850 9,246
0% 6/15/09 (FGIC Insured) Aaa 2,325 1,470
(Escrowed to Maturity) (i)
0% 6/15/00 (AMBAC Insured) Aaa 2,700 2,561
(McCormick Place Expansion
Proj.) (Cap. Appreciation)
Series A:
0% 6/15/12 (FGIC Insured) (b) Aaa 250 221
0% 6/15/12 (FGIC Insured) Aaa 11,570 10,479
(Pre-Refunded to 6/15/03 @
102) (b)(i)
(McCormick Place Expansion Aaa 14,450 15,276
Proj.) Series A, 5.25%
12/15/10 (AMBAC Insured)
(McCormick Place Expansion
Proj.) (Cap. Appreciation)
Series A:
0% 6/15/10 (FGIC Insured) Aaa 17,000 10,006
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
ILLINOIS - CONTINUED
Metropolitan Pier &
Exposition Auth. Dedicated
Tax Rev.: - continued
(McCormick Place Expansion
Proj.) (Cap. Appreciation)
Series A:
0% 6/15/15 (FGIC Insured) Aaa $ 3,100 $ 1,375
Rfdg. (McCormick Place Aaa 7,155 4,712
Expansion Proj.) (Cap.
Appreciation) Series A, 0%
6/15/08 (MBIA Insured)
Northern Illinois Univ. Revs. Aaa 1,000 1,063
(Auxiliary Facilities Sys.)
6% 4/1/02 (FGIC Insured)
300,850
INDIANA - 0.4%
Indiana Bond Bank Rev. (State AAA 2,000 2,327
Revolving Fund Prog.) Series
A, 7% 2/1/05
Indiana Health Facilities
Fing. Auth. Hosp. Rev. Rfdg.:
(Clarian Health Partners, Aa3 4,000 4,117
Inc.) Series A, 5.5% 2/15/16
(Columbus Reg'l. Hosp.) 7% Aaa 2,500 3,087
8/15/15 (CGIC Insured) (FSA
Insured)
Indianapolis Arpt. Auth. Rev. Aaa 1,000 1,062
Rfdg. Series A, 5.6% 7/1/15
(FGIC Insured)
Indianapolis Ind. Econ. Dev. Baa1 3,000 3,331
Rev. Rfdg. (Nat'l.
Benevolent Assoc.) 7.625%
10/1/22
Jasper County Poll. Cont. Aaa 2,000 2,172
Rev. Rfdg. (Northern
Indiana Pub. Svc.) 7.1%
7/1/17 (MBIA Insured)
16,096
KANSAS - 0.6%
Johnson County Unified School
District #512 (Shawnee
Mission):
8% 10/1/03 Aa1 1,015 1,195
8% 10/1/04 Aa1 1,225 1,474
8% 10/1/05 Aa1 1,250 1,542
Kansas City Util. Sys. Rev.
(Cap. Appreciation):
0% 3/1/09 (AMBAC Insured) Aaa 3,975 2,522
(Escrowed to Maturity) (i)
0% 9/1/10 (AMBAC Insured) Aaa 2,865 1,703
0% 9/1/10 (AMBAC Insured) Aaa 3,825 2,243
(Escrowed to Maturity) (i)
Kansas Dept. Trans. Hwy. Rev. Aa 4,750 5,578
7.25% 3/1/05
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
KANSAS - CONTINUED
Kansas Tpk. Auth. Tpk. Rev.
Rfdg.:
5.25% 9/1/01 (AMBAC Insured) Aaa $ 2,000 $ 2,085
5.25% 9/1/02 (AMBAC Insured) Aaa 1,750 1,840
Wichita Hosp. Rev. Series Aaa 6,000 6,531
III-A, 6.465% 10/20/17 (MBIA
Insured)
26,713
KENTUCKY - 0.8%
Jefferson County Cap. Projs. A1 5,250 2,879
Corp. Rev. (Cap.
Appreciation) Series A, 0%
8/15/11
Jefferson County Hosp. Rev. Aaa 4,000 4,382
(Alliant Health Sys. Proj.)
6.367% 10/9/08 (MBIA Insured)
Kenton County Arpt. Board
Arpt. Rev.:
(Spl. Facilities Delta Baa3 5,100 5,560
Airlines, Inc. Proj.)
Series A, 7.5% 2/1/20 (h)
Rfdg. (Cincinnati/Northern Aaa 1,480 1,588
Kentucky Int'l. Arpt.) 5.65%
3/1/04 (MBIA Insured) (h)
Kentucky Tpk. Auth. Econ. Aaa 7,760 6,926
Dev. Road Rev. Rfdg. (Cap.
Appreciation) 0% 1/1/02
(FGIC Insured)
Owensboro Elec. Lt. & Pwr.
Rev. Series B:
0% 1/1/07 (AMBAC Insured) Aaa 10,000 7,181
0% 1/1/08 (AMBAC Insured) Aaa 600 410
0% 1/1/09 (AMBAC Insured) Aaa 2,000 1,289
0% 1/1/10 (AMBAC Insured) Aaa 8,440 5,150
35,365
LOUISIANA - 0.6%
Louisiana Gen. Oblig.:
Rfdg. Series A, 6% 8/1/02 Aaa 1,000 1,073
(FGIC Insured)
Series A, 6.75% 5/15/04 (MBIA Aaa 5,865 6,640
Insured)
Louisiana Offshore Term. Baa1 1,205 1,309
Auth. Rev. Series E, 7.6%
9/1/10 (Pre-Refunded to
9/1/00 @ 102) (i)
Monroe-West Monroe Pub. Trust AA- 9,000 4,073
Fing. Auth. Mtg. Rev. Rfdg.
(Cap. Appreciation) Series
C, 0% 8/20/14
New Orleans Gen. Oblig.:
Pub. Impt. 7% 9/1/19 (FGIC Aaa 1,000 1,112
Insured) (Pre-Refunded to
9/1/02 @ 100) (i)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
LOUISIANA - CONTINUED
New Orleans Gen. Oblig.: -
continued
Rfdg.:
(Cap. Appreciation):
0% 9/1/08 (AMBAC Insured) Aaa $ 10,000 $ 6,537
0% 9/1/09 (AMBAC Insured) Aaa 3,000 1,858
6.5% 10/1/03 (AMBAC Insured) Aaa 1,500 1,668
Saint John Baptist Parish Baa 2,700 2,866
Sales Tax District Rfdg.
Series 1989, 7.8% 12/1/14
27,136
MARYLAND - 1.1%
Baltimore Consolidated Pub.
Impt. Rfdg. Series A:
7.25% 10/15/04 (FGIC Insured) Aaa 1,545 1,808
7.25% 10/15/05 (FGIC Insured) Aaa 5,100 6,070
Baltimore County Gen. Oblig. Aaa 3,140 3,278
Rfdg. 5.125% 8/1/14
Howard County Mtg. Rev. Aaa 250 265
(Heartland Elderly Apts.
Proj.) 8.875% 12/1/10 (MBIA
Insured)
Maryland Cmnty. Dev. Aa2 2,500 2,546
Administration Hsg. Dept. &
Cmnty. Dev. Rfdg.
(Residential) Series B,
5.05% 9/1/19 (h)
Maryland Gen. Oblig. 2nd
Series:
5% 7/15/05 Aaa 6,605 7,025
5% 7/15/06 Aaa 3,000 3,202
Maryland Health & Higher Edl.
Facilities Auth. Rev.:
(Good Samaritian Hosp.):
5.75% 7/1/13 (AMBAC Insured) Aaa 995 1,115
5.75% 7/1/13 (Escrowed to A1 1,605 1,768
Maturity) (i)
Rfdg. (John Hopkins Univ.):
5.125% 7/1/20 Aa2 5,000 5,083
5.25% 7/1/16 Aa2 3,000 3,093
5.25% 7/1/17 Aa2 3,000 3,080
Montgomery County Aaa 2,775 3,015
Consolidated Pub. Impt.
Unltd. Tax Gen. Oblig.
(Consolidated Pub. Impt.)
Series A, 5.6% 7/1/04
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
MARYLAND - CONTINUED
Prince George County Solid Aaa $ 1,500 $ 1,553
Waste Mgmt. Sys. Rev. 5.25%
6/15/13 (FSA Insured)
Washington D.C. Metropolitan Aaa 5,500 6,256
Area Trans. Auth. Gross Rev.
Rfdg. 6% 7/1/09 (FGIC
Insured)
49,157
MASSACHUSETTS - 7.5%
Boston Metro. District Gen. Aaa 1,260 1,491
Oblig. Rfdg. 8% 12/1/03
(MBIA Insured)
Boston Rev. (Boston City Aaa 1,500 1,620
Hosp.) Series A, 7.15%
8/15/01 (Pre-Refunded to
8/15/00 @ 102) (i)
Haverhill Gen. Oblig. Rfdg. Aaa 5,000 5,437
Series A, 6.7% 9/1/10
(AMBAC Insured)
Massachusetts Bay Trans.
Auth. Rfdg. (Gen. Trans.
Sys.):
Series A:
5.5% 3/1/12 Aa3 5,000 5,478
6.25% 3/1/12 Aa3 2,000 2,339
Series B, 6.2% 3/1/16 Aa3 3,800 4,450
Massachusetts Ed. Ln. Auth.
Ed. Ln. Rev. Series B,
Issue E:
5.75% 7/1/05 (AMBAC Insured) Aaa 2,585 2,735
(h)
5.85% 7/1/06 (AMBAC Insured) Aaa 3,080 3,281
(h)
5.95% 7/1/07 (AMBAC Insured) Aaa 3,335 3,552
(h)
6.05% 7/1/08 (AMBAC Insured) Aaa 3,445 3,669
(h)
6.15% 7/1/10 (AMBAC Insured) Aaa 1,385 1,472
(h)
6.25% 7/1/11 (AMBAC Insured) Aaa 835 890
(h)
6.3% 7/1/12 (AMBAC Insured) Aaa 840 892
(h)
Massachusetts Gen. Oblig.:
(Consolidated Ln.):
Series A, 6% 6/1/11 Aaa 1,400 1,481
(Pre-Refunded to 6/1/01 @
100) (i)
Series B, 4.875% 10/1/13 Aa3 2,500 2,516
Rfdg. Series A:
5.5% 2/1/11 (MBIA Insured) Aaa 20,095 21,220
6% 7/1/05 (AMBAC Insured) Aaa 2,000 2,227
6.25% 7/1/04 Aa3 6,000 6,683
Series A, 7.5% 6/1/04 Aa3 3,270 3,764
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl.
Facilities Auth. Rev.:
(Baystate Med. Ctr.) Series Aaa $ 3,000 $ 3,032
D, 5% 7/1/12 (FGIC Insured)
(Blood Research Institute) - 4,720 5,106
Series A, 6.5% 2/1/22
(Fairview Extended Care) Aaa 13,000 15,077
Series A, 10.25% 1/1/21
(Pre-Refunded to 1/1/01 @
103) (i)
(Harvard Univ.) Series P, Aaa 1,100 1,233
6.5% 11/1/03
(Massachusetts Institute of Aaa 6,000 5,781
Technology) Series I 2,
4.75% 1/1/28
(New England Med. Ctr. Hosp.) Aaa 3,800 3,870
Series G, 5.375% 7/1/24
(MBIA Insured)
(Univ. Hosp.) Series C, 7.25% Aaa 3,500 3,769
7/1/19 (MBIA Insured)
(Pre-Refunded to 7/1/00 @
102) (i)
Rfdg.:
(Fairview Extended Care) Aaa 5,100 5,135
Series B, 4.55% 1/1/21
(MBIA Insured), LOC
BankBoston NA
(Massachusetts Gen. Hosp.) Aaa 2,000 2,326
Series F, 6.25% 7/1/12
(AMBAC Insured)
Massachusetts Hsg. Fin. Auth.
Hsg. Rev. Rfdg. (Rental)
Series A:
6.6% 7/1/14 (AMBAC Insured) Aaa 2,385 2,589
(h)
6.65% 7/1/19 (AMBAC Insured) Aaa 1,910 2,097
(h)
Massachusetts Ind. Fin. Agcy. AAA 3,950 4,414
Multi-Mode Ind. Dev. Rev.
(Union Mission Proj.) 9.55%
9/1/26
Massachusetts Ind. Fin. Agcy.
Resource Recovery Rev.:
(Ogden Haverhill) Series 1992 BBB 5,430 5,461
A, 4.6% 12/1/02
Rfdg. Series A, 4.7% 12/1/03 BBB 1,975 1,988
Massachusetts Ind. Fin. Agcy.
Rev.:
(Atlanticare Med. Ctr.) - 9,500 10,137
Series A, 10.125% 11/1/14
(Cap. Appreciation)
(Massachusetts Biomedical)
Series A 2:
0% 8/1/08 - 5,000 3,268
0% 8/1/10 - 11,000 6,342
(Massachusetts Biomedical A1 270 276
Research) Series A, 7.1%
8/1/99
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy.
Rev.: - continued
(Massachusetts Biomedical
Research)(Cap. Appreciation)
Series A 2:
0% 8/1/03 A1 $ 29,600 $ 24,461
0% 8/1/04 A1 5,000 3,963
0% 8/1/06 A1 30,800 22,245
0% 8/1/09 - 21,800 13,285
Rfdg. (Emerson College) Issue - 10,000 10,841
A, 8.9% 1/1/18
Massachusetts Muni. Wholesale
Elec. Co. Pwr. Supply Sys.
Rev.:
Rfdg.:
Series A, 6.75% 7/1/08 (MBIA Aaa 2,500 2,748
Insured)
Series B, 5% 7/1/12 (MBIA Aaa 2,715 2,770
Insured)
5% 7/1/10 (AMBAC Insured) Aaa 4,610 4,737
Series B, 6.75% 7/1/08 (MBIA Aaa 5,995 6,590
Insured)
Series C, 6.625% 7/1/06 Baa2 2,220 2,409
Series D, 6% 7/1/06 Baa2 1,300 1,384
Massachusetts Tpk. Auth.
Metro Hwy. Sys. Rev. Series A:
5% 1/1/27 (MBIA Insured) Aaa 11,000 10,887
5% 1/1/37 (MBIA Insured) Aaa 10,000 9,787
5.125% 1/1/23 (MBIA Insured) Aaa 8,500 8,532
Massachusetts Tpk. Auth. Aaa 30,850 31,157
Western Tpk. Rev. Series A,
5.55% 1/1/17 (MBIA Insured)
New England Ed. Ln. Marketing
Corp. Massachusetts Student
Ln. Rev. Rfdg. (Student Ln.):
Series A, 5.7% 7/1/05 (h) A3 18,500 19,491
Series B, 5.4% 6/1/00 A3 2,500 2,555
Series G:
5% 8/1/00 A3 2,500 2,545
5.2% 8/1/02 A3 2,000 2,051
Palmer Gen. Oblig. Rfdg. 5.5% Aaa 3,000 3,187
10/1/10 (MBIA Insured)
342,723
MICHIGAN - 1.8%
Detroit Convention Facilities A 4,000 4,063
Rev. Rfdg. (Cobo Hall
Expansion Proj.) 5.25%
9/30/12
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
MICHIGAN - CONTINUED
Lowell Area Schools (Cap. Aaa $ 21,685 $ 5,624
Appreciation) 0% 5/1/20
(FGIC Insured) (Pre-Refunded
to 5/1/05 @ 33.6439) (i)
Michigan Bldg. Auth. Rev. Aaa 1,100 1,178
Series II, 6.25% 10/1/20
(MBIA Insured)
Michigan Hosp. Fin. Auth. Rev.:
(Detroit Med. Ctr.) Series A, A3 10,800 10,594
5.25% 8/15/28
Rfdg.:
(Bay Med. Ctr.) Series A, A3 1,000 1,082
8.25% 7/1/12
(Detroit Med. Ctr. Oblig. A3 5,000 5,416
Group) Series A, 6.5% 8/15/18
(Sisters of Mercy Health Aaa 7,340 7,902
Corp.) 5.375% 8/15/14 (MBIA
Insured)
Michigan Hsg. Dev. Auth.
Rental Hsg. Rev.:
Rfdg. Series B, 5.7% 4/1/12 AA- 3,750 3,928
Series B, 7.5% 4/1/10 AA- 6,000 6,369
Michigan Hsg. Dev. Auth.
Single Family Mtg. Rev.
Series A:
7.5% 6/1/15 AA+ 470 489
7.7% 12/1/16 AA+ 840 863
Michigan Muni. Bond Auth.
Rev. Rfdg. (Local Govt. Ln.
Prog.) Series G:
7% 5/1/02 (AMBAC Insured) Aaa 2,425 2,669
7% 11/1/02 (AMBAC Insured) Aaa 1,465 1,633
7% 5/1/03 (AMBAC Insured) Aaa 2,700 3,040
Michigan Trunk Line (Cap. Aaa 8,010 5,011
Appreciation) Series A, 0%
10/1/09 (AMBAC Insured)
Michigan Underground Storage Aaa 5,500 6,181
Fin. Assurance Auth. Rev.
Rfdg. Series I, 6% 5/1/06
(AMBAC Insured)
Michigan Univ. Rev. Rfdg. Aa2 7,750 8,242
(Univ. Hosp. Proj.) Series
A, 5.75% 12/1/12
Royal Oak Hosp. Fin. Auth.
Rev.:
(William Beaumont Hosp.) 5.5% Aa3 3,695 3,870
1/1/14
Rfdg. (William Beaumont Aa3 400 455
Hosp.) 6.25% 1/1/09
Western Townships Util. Auth.
Swr. Disp. Sys.:
Rfdg. (Cap. Appreciation) 0% Aaa 2,810 2,197
1/1/05 (CGIC Insured) (FSA
Insured)
8.2% 1/1/18 BBB+ 2,000 2,047
82,853
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
MINNESOTA - 1.3%
Centennial Independent School Aaa $ 2,610 $ 2,638
District #12 Rfdg. Series B,
4.875% 2/1/12 (FGIC Insured)
Maplewood Health Care Baa3 1,000 1,055
Facilities Rev. (Healtheast
Proj.) 5.8% 11/15/03
Minneapolis & Saint Paul Hsg. Aaa 11,700 11,507
& Redev. Auth. Health Care
Sys. Rev. Rfdg. (Healthspan
Health Sys. Corp.) Series A,
4.75% 11/15/18 (AMBAC
Insured)
Minneapolis Convention Ctr. Aaa 1,175 968
(Cap. Appreciation) Series
B, 0% 12/1/03
Minnesota Hsg. Fin. Agcy.
(Single Family Mtg.):
Series B, 5.8% 7/1/25 (h) Aa2 5,750 5,904
Series I, 6.25% 1/1/15 Aa2 1,870 1,967
Series K, 6.4% 1/1/15 Aa2 3,115 3,314
Rochester Health Care
Facilities Rev. (Mayo
Foundation/Mayo Med. Ctr.)
Series I:
5.9% 11/15/09 AA+ 2,000 2,252
5.9% 11/15/10 AA+ 2,250 2,531
St. Cloud Hosp. Facilities Aaa 2,000 2,074
Auth. Rev. Rfdg. (St. Cloud
Hosp. Proj.) Series C, 5.25%
10/1/13 (AMBAC Insured)
Univ. of Minnesota Rfdg. 4.8% Aa2 15,000 15,575
8/15/03
Western Minnesota Muni. Pwr.
Agcy. Pwr. Supply Rev.:
Rfdg. Series A:
5.5% 1/1/11 (AMBAC Insured) Aaa 3,525 3,808
5.5% 1/1/12 (AMBAC Insured) Aaa 1,750 1,902
Series B, 6% 1/1/04 (AMBAC Aaa 1,890 2,070
Insured)
57,565
MISSISSIPPI - 0.1%
Hinds County Ctfs. of Prtn. - 1,095 1,129
(Welfare Dept. Proj.) 7.75%
3/1/09 (Pre-Refunded to
3/1/99 @ 102) (i)
Hinds County Mtg. Rev. Rfdg. Aaa 4,000 4,396
(Mississipi Methodist Hosp.
& Rehabilitation) 5.6%
5/1/12 (AMBAC Insured)
Mississippi Home Corp. Single Aaa 565 600
Family Rev. Rfdg. Series A,
9.25% 3/1/12 (FGIC Insured)
6,125
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
MISSOURI - 0.2%
Boone County Ind. Dev. Auth. - $ 2,085 $ 2,413
Ind. Rev. 1st Mtg. (Fairview
Extended Care) Series A,
10.125% 1/1/11 (Pre-Refunded
to 1/1/01 @ 103) (i)
Kirkwood Ind. Dev. Auth. - 2,000 2,254
Health Care Corp. Rev. (St.
Joseph Hosp.) 7% 7/1/22
(Pre-Refunded to 7/1/02 @
102) (i)
Missouri Higher Ed. Ln. Auth. Aa 4,000 4,106
Student Ln. Rev. (Sr. Lien)
Series A, 5.625% 2/15/01
Missouri Hsg. Dev. Commission AAA 1,900 1,948
Mtg. Rev. Series C, 5.5%
3/1/16 (h)
10,721
MONTANA - 0.3%
Montana Board of Invt.
(Payroll Tax Workers
Compensation):
Series 1991, 6.875% 6/1/11 Aaa 6,200 6,721
(MBIA Insured) (Escrowed to
Maturity) (i)
Series 1996:
6.875% 6/1/20 (MBIA Insured) Aaa 1,255 1,357
(Escrowed to Maturity) (i)
6.875% 6/1/20 (MBIA Insured) Aaa 3,870 4,184
(Escrowed to Maturity) (i)
6.875% 6/1/20 (MBIA Insured) Aaa 2,005 2,168
(Escrowed to Maturity) (i)
14,430
NEBRASKA - 0.8%
Douglas County Hosp. Auth. #1 Aaa 3,250 3,582
Rev. Rfdg. (Immanuel Med.
Ctr., Inc.) 6.9% 9/1/11
(AMBAC Insured)
(Pre-Refunded to 9/1/01 @
102) (i)
Nebraska Pub. Pwr. District
Rev.:
(Elec. Sys.) Series A, 6% A1 1,500 1,624
1/1/06 (Pre-Refunded to
1/1/02 @ 102) (i)
Rfdg. (Pwr. Supply Sys.):
Series B, 5.25% 1/1/13 (MBIA Aaa 6,065 6,486
Insured) (Pre-Refunded to
1/1/03 @ 102) (i)
Series C:
5% 1/1/10 (MBIA Insured) Aaa 5,880 6,233
(Pre-Refunded to 7/1/04 @
101) (i)
5% 1/1/17 (Pre-Refunded to A1 10,000 10,575
7/1/04 @ 101) (i)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
NEBRASKA - CONTINUED
Nebraska Pub. Pwr. District
Rev.: - continued
Series A, 5.25% 1/1/12 (MBIA Aaa $ 5,000 $ 5,243
Insured)
Scotts Bluff County Hosp. A3 3,000 3,268
Auth. #1 Hosp. Rev. (Reg'l.
West Med. Ctr. Proj.) 6.45%
12/15/04
37,011
NEVADA - 0.2%
Clark County Ind. Dev. Rev. Aaa 7,000 7,886
Rfdg. (Neveda Pwr. Co.
Proj.) Series C, 7.2%
10/1/22 (AMBAC Insured)
Las Vegas Downtown Redev. BBB+ 500 526
Agcy. Tax Increment Rev.
(Fremont Street Proj.)
Series A, 6.1% 6/15/14
8,412
NEW HAMPSHIRE - 0.1%
New Hampshire Higher Edl. & - 3,540 3,806
Health Facilities Auth. Rev.
(Littleton Hosp. Assoc.,
Inc.) Series A, 9.5% 5/1/20
(Pre-Refunded to 5/1/00 @
102) (i)
NEW JERSEY - 2.2%
Middlesex County Poll. Cont. - 7,750 8,936
Auth. Rev. Rfdg. (Amerada
Hess) 7.875% 6/1/22
New Jersey Health Care AAA 1,635 1,938
Facilities Fing. Auth. Rev.
(Christ Hosp. Group Issue)
7% 7/1/06 (Connie Lee
Insured)
New Jersey Tpk. Auth. Tpk.
Rev. Rfdg.:
Series C, 6.5% 1/1/09 (AMBAC Aaa 1,000 1,180
Insured)
10.375% 1/1/03 (Escrowed to AAA 1,045 1,202
Maturity) (i)
New Jersey Trans. Corp. Aaa 1,345 1,413
Series A, 5.4% 9/1/02 (FSA
Insured)
New Jersey Trans. Trust Fund
Auth. Trans. Sys.:
(Trans. Sys.):
Series A, 5.25% 6/15/11 Aa2 15,345 15,980
Series B:
5% 6/15/13 (AMBAC Insured) Aaa 26,055 26,797
5.25% 6/15/12 Aa2 10,000 10,432
Rfdg.:
(Trans. Sys.) Series A:
5.5% 6/15/11 (MBIA Insured) Aaa 7,650 8,233
6.5% 6/15/05 (AMBAC Insured) Aaa 7,500 8,578
Series B, 6.5% 6/15/10 (MBIA Aaa 5,000 6,016
Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
NEW JERSEY - CONTINUED
New Jersey Wastewtr. Aaa $ 3,475 $ 3,870
Treatment Trust Ln. Rev.
Rfdg. Series C, 6.25%
5/15/04 (MBIA Insured)
Passaic County Util. Auth. Aaa 3,580 3,296
Solid Waste Disp. Rev. Rfdg.
(Cap. Appreciation) 0%
3/1/01 (MBIA Insured)
Warren County Poll. Cont. Aaa 1,000 1,098
Fing. Auth. Resource
Recovery Rev. 6.55% 12/1/06
(MBIA Insured)
98,969
NEW MEXICO - 0.7%
Albuquerque Arpt. Rev.:
Rfdg.:
6.5% 7/1/08 (AMBAC Insured) Aaa 1,500 1,729
6.7% 7/1/18 (AMBAC Insured) Aaa 2,500 2,884
6.75% 7/1/09 (AMBAC Insured) Aaa 1,150 1,361
6.75% 7/1/10 (AMBAC Insured) Aaa 1,700 2,038
6.75% 7/1/12 (AMBAC Insured) Aaa 1,935 2,325
Series A, 6.6% 7/1/16 (AMBAC Aaa 4,750 5,154
Insured)
Albuquerque Refuse Removal & Aaa 2,500 2,679
Disp. Rev. Rfdg. 5.25%
7/1/09 (AMBAC Insured)
New Mexico Edl. Assistance Aaa 4,105 4,182
Foundation Student Ln. Rev.
Series B, 5.25% 4/1/05
(AMBAC Insured) (h)
New Mexico Univ. Rev. Rfdg. A1 5,340 6,073
Series A, 6% 6/1/21
Rio Rancho Wtr. & Wastewtr. Aaa 1,600 1,739
Sys. Rev. Series A, 5.9%
5/15/15 (FSA Insured)
30,164
NEW YORK - 16.2%
Long Island Pwr. Auth. Elec.
Sys. Rev. Series A:
5.25% 12/1/26 Baa1 17,305 17,417
5.5% 12/1/29 Baa1 23,100 23,791
Metropolitan Dedicated Tax Aaa 12,500 12,774
Fund Series A, 5.25% 4/1/26
(MBIA Insured)
Metropolitan Trans. Auth.
Commuter Facilities Rev.:
Series A, 5.625% 7/1/27 (MBIA Aaa 5,000 5,393
Insured)
6% 7/1/16 (FGIC Insured) Aaa 2,000 2,226
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
NEW YORK - CONTINUED
Metropolitan Trans. Auth.
Svc. Contract:
(Commuter Facilities) Series O:
5.75% 7/1/08 Baa1 $ 1,000 $ 1,107
5.75% 7/1/13 Baa1 7,650 8,438
(Trans. Facilities) Series O, Baa1 7,595 8,224
5.625% 7/1/05
Rfdg. (Contract Trans.
Facilities Svc.):
Series 5, 6.9% 7/1/05 Baa1 1,000 1,090
Series 7, 5.4% 7/1/06 Baa1 1,000 1,076
Metropolitan Trans. Auth.
Trans. Facilities Rev.:
(Svc. Contract) Series Q, Aaa 13,000 13,418
5.125% 7/1/13 (AMBAC Insured)
Rfdg.:
(Svc. Contract) Series R:
5% 7/1/02 Baa1 4,255 4,403
5% 7/1/03 Baa1 3,450 3,589
Series K, 6.3% 7/1/06 (MBIA Aaa 3,500 4,000
Insured)
Series A, 5.75% 7/1/21 (MBIA Aaa 11,430 12,395
Insured)
Muni. Assistance Corp. for Aa2 5,340 5,874
New York City Rfdg. Series
J, 6% 7/1/04
Nassau County Gen. Oblig.:
Gen. Impt. Rfdg. Series A:
6.5% 5/1/04 (FGIC Insured) Aaa 7,425 8,314
6.5% 5/1/05 (FGIC Insured) Aaa 4,490 5,103
6.5% 5/1/06 (FGIC Insured) Aaa 4,000 4,606
Series Y, 4.9% 3/1/02 (FGIC Aaa 7,000 7,224
Insured)
New York State Pwr. Auth. Aaa 5,000 5,501
Rev. & Gen. Purp. Series Z,
6.5% 1/1/19 (Pre-Refunded to
1/1/02 @ 102) (i)
New York City Gen. Oblig.:
Rfdg.:
Series A:
7% 8/1/03 A3 2,000 2,240
7% 8/1/04 A3 4,375 4,978
Series B:
5.7% 8/15/02 A3 5,805 6,149
5.7% 8/15/02 (Escrowed to A3 195 208
Maturity) (i)
Series D:
6.3% 8/15/01 A3 7,450 7,921
6.6% 2/1/03 A3 1,000 1,095
8% 2/1/05 A3 2,550 3,059
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
NEW YORK - CONTINUED
New York City Gen. Oblig.: -
continued
Rfdg.:
Series E:
5.4% 2/15/03 A3 $ 10,285 $ 10,799
6.5% 2/15/04 (FGIC Insured) Aaa 3,500 3,894
Series H:
5.4% 8/1/04 A3 3,880 4,115
7.875% 8/1/00 A3 4,480 4,781
7.875% 8/1/00 (Escrowed to Aaa 460 493
Maturity) (i)
Series A:
6% 8/1/18 (FSA Insured) Aaa 4,900 4,914
(Escrowed to Maturity) (i)
6.375% 8/1/05 A3 3,410 3,714
7.75% 8/15/07 (Pre-Refunded Aaa 145 162
to 8/15/01 @ 101.5) (i)
7.75% 8/17/07 A3 105 116
Series B:
5.5% 8/15/01 A3 390 407
5.5% 8/15/01 (Escrowed to Aaa 10 10
Maturity) (i)
7.5% 2/1/02 A3 10,000 11,026
7.5% 2/1/03 A3 19,000 21,200
7.5% 2/1/04 A3 1,500 1,669
Series C:
6.4% 8/1/03 A3 4,120 4,498
6.5% 8/1/07 A3 2,475 2,701
6.5% 8/1/07 (Pre-Refunded to A3 525 581
8/1/02 @ 101.5) (i)
Series D, 6.5% 2/15/05 A3 500 561
Series F:
6.1% 2/15/02 (Escrowed to Aaa 2,490 2,673
Maturity) (i)
8.1% 11/15/99 A3 330 345
Series G:
5.4% 2/1/01 A3 7,925 8,184
5.4% 2/1/01 (Escrowed to A3 1,075 1,116
Maturity) (i)
5.6% 2/1/02 A3 23,880 25,031
5.6% 2/1/02 (Escrowed to A3 2,835 2,994
Maturity) (i)
Series H, 6.9% 2/1/01 A3 245 260
Series H, Sub-Series H 1:
5.5% 8/1/01 A3 4,900 5,107
5.5% 8/1/01 (Escrowed to A3 100 105
Maturity) (i)
Series J, 6% 2/15/04 A3 3,000 3,252
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
NEW YORK - CONTINUED
New York City Gen. Oblig.: -
continued
6.375% 8/1/05 (Pre-Refunded A3 $ 1,590 $ 1,752
to 8/1/02 @ 101.5) (i)
New York City Ind. Dev. Agcy. A3 500 539
Spl. Fac. Rev. (Term. One
Group Assoc. Proj.) 6%
1/1/08 (h)
New York City Ind. Dev. Agcy. Aaa 1,950 2,136
Ind. Dev. Rev. (Japan
Airlines Co. Ltd. Proj.)
Series 1991, 6% 11/1/15
(FSA Insured) (h)
New York City Muni. Wtr. Fin.
Auth.:
Series A, 7% 6/15/09 (FGIC Aaa 2,500 2,681
Insured)
Series B:
5.5% 6/15/27 (MBIA Insured) Aaa 41,185 43,061
5.75% 6/15/26 A2 10,000 10,707
5.75% 6/15/26 (AMBAC Insured) Aaa 10,000 10,815
5.75% 6/15/29 A2 41,500 44,402
5.875% 6/15/26 A2 1,325 1,425
New York City Transitional
Fin. Auth. Rev.:
(Future Tax):
2nd Series A, 5% 8/15/15 Aa3 5,000 5,055
Series B, 4.75% 11/15/16 Aa3 7,300 7,144
Series A:
5.125% 11/15/14 Aa3 5,000 5,135
5.25% 11/15/13 Aa3 3,000 3,136
New York City Trust Cultural Aaa 6,500 6,925
Resources Rev. (American
Museum of Natural History)
5.65% 4/1/27 (MBIA Insured)
New York Local Govt.
Assistance Corp.:
(Cap. Appreciation) Series A, A3 2,000 1,350
0% 4/1/08
(Cap. Appreciation) Series B, A3 5,000 3,374
0% 4/1/08
Rfdg.:
(Cap. Appreciation) Series C, A3 10,000 5,070
0% 4/1/13
Series A, 5.5% 4/1/04 (AMBAC Aaa 2,200 2,365
Insured)
Series C, 5.5% 4/1/17 A3 21,850 23,756
Series E, 6% 4/1/14 A3 18,085 20,845
Series A, 5.375% 4/1/16 A3 11,000 11,559
Series B, 6% 4/1/18 A3 18,140 19,755
(Pre-Refunded to 4/1/02 @
102) (i)
New York State Dorm. Auth. Aa1 3,025 3,098
Lease Rev. 5.25% 8/1/18
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
NEW YORK - CONTINUED
New York State Dorm. Auth.
Rev.:
(City Univ. Sys. Consolidated):
Series A, 5.75% 7/1/09 Baa1 $ 4,370 $ 4,820
Series D:
7% 7/1/09 Baa1 2,000 2,341
7% 7/1/09 (FGIC Insured) Aaa 3,780 4,504
(City Univ. Sys.) Series C, Baa1 3,000 3,694
7.5% 7/1/10
(New York Univ.) Series A, Aaa 10,000 11,388
5.75% 7/1/27 (MBIA Insured)
(State Univ. Edl. Facilities):
Series A:
5.5% 5/15/08 A3 3,500 3,805
5.5% 5/15/13 (FGIC Insured) Aaa 24,350 26,695
5.875% 5/15/11 A3 7,000 7,851
5.875% 5/15/17 (FGIC Insured) Aaa 6,865 7,798
Series B, 5.25% 5/15/11 A3 8,000 8,502
5.75% 5/15/09 A3 2,465 2,724
(Suffolk County Judicial Baa1 7,000 8,135
Facilities) Series A, 9.5%
4/15/14
Rfdg.:
(Mental Health Svcs. A3 8,035 8,640
Facilities) Series B, 6%
2/15/03
(State Univ. Edl. Facilities):
Series A, 6.5% 5/15/04 A3 3,000 3,345
Series B, 5.25% 5/15/05 A3 1,000 1,060
New York State Envir.
Facilities Corp. Poll. Cont.
Rev. Rfdg.:
(State Wtr. Revolving Fund) Aa1 2,000 2,223
Series A, 5.75% 6/15/12
(State Wtr. Revolving Aa1 2,500 2,789
Fund-New York City Muni.
Wtr.) 5.75% 6/15/11
New York State Med. Care
Facilities Fin. Agcy. Rev.:
(Mtg. Proj.) Series E, 6.2% Aa 1,500 1,635
2/15/15
(North Shore Univ. Hosp. Mtg. Aaa 2,000 2,177
Proj.) 7.2% 11/1/20 (MBIA
Insured) (Pre-Refunded to
11/1/00 @ 102) (i)
New York State Thruway Auth.
Gen. Rev.:
(Spl. Oblig. Cross) Series A, BBB 8,500 6,498
0% 1/1/05
Rfdg. Series E, 5.25% 1/1/11 Aa3 9,120 9,604
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
NEW YORK - CONTINUED
New York State Thruway Auth.
Hwy. & Bridge Trust Fund
Series A:
5.8% 4/1/09 A3 $ 1,500 $ 1,601
6.25% 4/1/04 (MBIA Insured) Aaa 2,345 2,602
New York State Thruway Auth.
Svc. Contract Rev. (Local
Hwy. & Bridge):
Series A, 6% 1/1/05 (MBIA Aaa 2,500 2,768
Insured)
6% 4/1/03 Baa1 2,500 2,683
7.25% 1/1/10 (Pre-Refunded to Baa1 5,000 5,460
1/1/01 @ 102) (i)
New York State Urban Dev.
Corp. Rev. Rfdg.:
(Correctional Cap. Baa1 6,000 6,495
Facilities) Series A, 6.3%
1/1/03
(Correctional Facilities) Aaa 1,000 1,066
Series A, 5.1% 1/1/09 (AMBAC
Insured)
(State Facilities) 5.75% Baa1 2,300 2,551
4/1/11
Niagara Falls Wtr. Treatment Aaa 500 667
Plant (Pub. Impt.) 7.5%
3/1/18 (MBIA Insured)
Triborough Bridge & Tunnel Baa1 9,650 11,604
Auth. (Convention Ctr.
Proj.) Series E, 7.25% 1/1/10
Triborough Bridge & Tunnel
Auth. Rev.:
(Gen. Purp.) Series A, 4.75% Aa3 3,155 3,071
1/1/19
Rfdg. (Gen. Purp.) Series Y, Aa3 16,100 17,533
5.5% 1/1/17
Series A:
5.125% 1/1/22 Aa3 2,075 2,096
5.25% 1/1/28 Aa3 13,315 13,559
746,390
NORTH CAROLINA - 1.8%
Harnett County Ctfs. of Prtn.:
7.5% 12/1/03 (AMBAC Insured) Aaa 2,640 3,081
7.5% 12/1/04 (AMBAC Insured) Aaa 2,865 3,420
North Carolina Eastern Muni.
Pwr. Agcy. Pwr. Sys. Rev.:
Rfdg.:
Series A:
5.2% 1/1/01 Baa1 10,000 10,215
5.5% 1/1/04 (MBIA Insured) Aaa 1,000 1,068
5.5% 1/1/05 (MBIA Insured) Aaa 1,000 1,074
6.1% 1/1/01 Baa1 1,350 1,403
6.25% 1/1/03 Baa1 2,100 2,252
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
NORTH CAROLINA - CONTINUED
North Carolina Eastern Muni.
Pwr. Agcy. Pwr. Sys. Rev.: -
continued
Rfdg.:
Series A:
7.875% 1/1/02 Baa1 $ 4,000 $ 4,425
Series B, 7.25% 1/1/07 Baa1 7,375 8,748
Series C:
5.25% 1/1/04 Baa1 1,000 1,043
5.5% 1/1/07 Baa1 5,950 6,342
7% 1/1/07 Baa1 7,750 9,063
Series B, 6% 1/1/05 Baa1 11,500 12,376
North Carolina Muni. Pwr.
Agcy. #1 Catawba Elec. Rev.:
5.25% 1/1/09 (MBIA Insured) Aaa 4,655 4,968
6.25% 1/1/17 (AMBAC Insured) Aaa 2,050 2,236
6.25% 1/1/17 (AMBAC Insured) Aaa 1,150 1,275
(Pre-Refunded to 1/1/03 @
102) (i)
North Carolina State Hwy. Aaa 10,000 10,319
Series A, 4.5% 5/1/05
83,308
NORTH DAKOTA - 0.4%
Mercer County Poll. Cont.
Rev. Rfdg.:
(Antelope Valley Aaa 13,000 16,416
Station/Basin Elec. Pwr.
Coop.) 7.2% 6/30/13 (AMBAC
Insured)
(Montana-Dakota Utils. Co. Aaa 3,750 4,125
Proj.) 6.65% 6/1/22 (FGIC
Insured)
20,541
OHIO - 3.0%
Bedford Hosp. Impt. Rev. - 885 946
Rfdg. (Bedford Comnty.
Hosp.) 8.5% 5/15/09
(Pre-Refunded to 5/15/00 @
102) (i)
Cleveland Pub. Pwr. Sys. Rev. Aaa 4,000 3,966
Rfdg. (First Mtg.) Series 1,
5% 11/15/24 (MBIA Insured)
Cleveland Arpt. Sys. Rev. Aaa 1,000 1,061
Series A, 5.5% 1/1/04 (FSA
Insured) (h)
Cleveland Wtrwks. Rev.:
Rfdg. & Impt. Series I, 5% Aaa 10,000 9,987
1/1/23 (FSA Insured)
Rfdg. (1st. Mtg.) Series G, Aaa 6,665 7,280
5.5% 1/1/13 (MBIA Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
OHIO - CONTINUED
Euclid City School District
Rfdg. (Cap. Appreciation):
0% 12/1/02 (AMBAC Insured) Aaa $ 1,265 $ 1,089
0% 12/1/03 (AMBAC Insured) Aaa 1,265 1,043
Hamilton County Sales Tax Aaa 5,800 5,766
(Hamilton County Football
Proj.) Series B, 5% 12/1/27
(MBIA Insured)
Marion County Hosp. Impt. BBB+ 380 392
Rev. Rfdg. (Comnty. Hosp.
Proj.) 5.6% 5/15/01
Ohio Bldg. Auth. Facilities:
(Adult Correctional) Series Aaa 4,000 4,337
A, 5.95% 10/1/14 (MBIA
Insured)
(W. Green Bldg. A) 4.75% A2 15,000 14,867
4/1/14
Ohio Hsg. Fin. Agcy. Mtg. Rev.:
(Oakleaf-Toledo Apts. Proj.) AA- 1,560 1,771
10.25% 12/20/25, LOC Govt.
Nat'l. Mortgage Assoc.
(Residential Prog.):
Series A 1, 5.3% 9/1/26 (h) AAA 3,305 3,395
Series B 3, 4.95% 9/1/20, LOC AAA 13,420 13,723
Govt. Nat'l. Mortgage Assoc.
(h)
Series C 1, 5% 3/1/19 (h) AAA 5,000 5,016
Ohio Pub. Facilities Aa3 2,445 2,502
Commission Higher Ed. Cap.
Facilities Series II B, 4.5%
11/1/01
Ohio Tpk. Commission Tpk. Rev.:
Rfdg. Series A, 5.5% 2/15/24 Aaa 37,115 40,553
(FGIC Insured)
Series A:
5.6% 2/15/12 (MBIA Insured) Aaa 1,250 1,349
5.7% 2/15/13 (MBIA Insured) Aaa 2,750 2,994
Ohio Wtr. Dev. Auth. Poll.
Cont. Facilities Rev.:
(Wtr. Cont. Ln. Fund) State
Match Series:
6.5% 6/1/03 (MBIA Insured) Aaa 2,940 3,252
6.5% 12/1/03 (MBIA Insured) Aaa 2,925 3,268
Rfdg. (Buckeye Pwr., Inc. Aaa 2,710 3,255
Proj.) 7.8% 11/1/14 (AMBAC
Insured)
Ohio Wtr. Dev. Auth. Rev.
(Fresh Wtr. Proj.):
6.25% 6/1/02 (AMBAC Insured) Aaa 1,860 2,010
6.25% 6/1/03 (AMBAC Insured) Aaa 1,975 2,165
135,987
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
OKLAHOMA - 0.2%
Oklahoma County Ind. Auth. - $ 2,860 $ 2,971
Rev. (Epworth Village Proj.)
Series A, 10.25% 4/1/19
(Pre-Refunded to 4/1/99 @
102) (i)
Tulsa Muni. Arpt. Trust Rev. Baa2 3,600 3,997
(American Airlines Corp.
Proj.) 7.35% 12/1/11
6,968
OREGON - 0.4%
Multonomah County School
District #3 (Park Rose):
7% 12/1/03 (FGIC Insured) Aaa 2,000 2,291
7% 12/1/04 (FGIC Insured) Aaa 2,540 2,963
Oregon Health Hsg. Edl. &
Cultural Facilities Auth.
(Lewis & Clark College
Proj.) Series A:
6% 10/1/13 (MBIA Insured) Aaa 1,750 1,941
6.125% 10/1/24 (MBIA Insured) Aaa 1,000 1,105
Port Morrow Poll. Cont. Rev.:
(Pacific Northwest) Series A, AA- 385 430
8% 7/15/11
Rfdg. (Pacific Northwest)
Series A:
8% 7/15/06 AA- 385 430
8% 7/15/07 AA- 430 481
8% 7/15/08 AA- 480 536
8% 7/15/09 AA- 540 603
8% 7/15/10 AA- 605 676
8% 7/15/99 AA- 175 180
Portland Swr. Sys. Rev. A1 4,250 4,774
Series A, 6.25% 6/1/15
(Pre-Refunded to 6/1/04 @
101) (i)
16,410
PENNSYLVANIA - 3.9%
Allegheny County Hosp. Dev. Aaa 19,140 19,169
Auth. Rev. (Univ. of
Pittsburgh Med. Ctr.) Series
B, 5.125% 7/1/22 (MBIA
Insured)
Butler County Hosp. Auth. Aaa 5,000 5,470
Hosp. Rev. (North Hills
Passavant Hosp.) Series A,
6.8% 6/1/06 (FSA Insured)
(Pre-Refunded to 6/1/01 @
102) (i)
Cambria County Hosp. Dev. A2 1,500 1,622
Auth. Hosp. Rfdg. & Impt.
(Conemaugh Valley Hosp.)
Series B, 6.375% 7/1/18
(Connie Lee Insured)
(Pre-Refunded to 7/1/02 @
102) (i)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PENNSYLVANIA - CONTINUED
Chester County Health & Ed. Aaa $ 5,000 $ 5,093
Facilities Auth. Health Sys.
Rev. (Jefferson Health Sys.)
Series B, 5.25% 5/15/22
(AMBAC Insured)
Cumberland County Muni. Auth. Baa2 8,400 9,219
Rev. Rfdg. (Carlisle Hosp. &
Health) 6.8% 11/15/23
Delaware County Auth. Hosp. Baa1 3,500 3,655
Rev. (Crozer- Chester Med.
Ctr.) 6% 12/15/20
Delaware County Ind. Dev. Baa1 16,550 17,756
Auth. Rev. Rfdg. (Resource
Recovery Facility) Series A,
6.1% 7/1/13
Delaware County Auth. Rev.
(1st. Mtg. Riddle Village
Proj.):
7% 6/1/00 (Escrowed to Aaa 1,100 1,129
Maturity) (i)
8.25% 6/1/22 (Escrowed to Aaa 4,500 5,525
Maturity) (i)
8.75% 6/1/10 (Pre-Refunded to Aaa 2,000 2,363
6/1/02 @ 102) (i)
9.25% 6/1/22 (Pre-Refunded to Aaa 6,170 7,380
6/1/02 @ 102) (i)
Montgomery County Higher Ed.
& Health Auth. Hosp. Rev.
(United Hosp., Inc. Proj.):
Series A, 8.375% 11/1/03 Ba1 135 144
(Pre-Refunded to 11/1/99 @
102) (i)
Series B, 7.5% 11/1/15 Ba1 165 171
(Pre-Refunded to 11/1/99 @
100) (i)
Northumberland County Auth. Aaa 11,830 5,813
Commonwealth Lease Rev.
(Correctional Facilities)
0% 10/15/13 (MBIA Insured)
(Escrowed to Maturity) (i)
Pennsylvania Convention Ctr.
Auth. Rev.:
Rfdg. Series A:
6.6% 9/1/09 (MBIA Insured) Aaa 3,000 3,417
6.7% 9/1/14 (MBIA Insured) Aaa 1,500 1,715
6.75% 9/1/19 Baa 4,500 4,938
Series A, 6.7% 9/1/16 (FGIC Aaa 2,000 2,438
Insured) (Escrowed to
Maturity) (i)
Pennsylvania Hsg. Fin. Agcy.
Rev.:
Rfdg.:
(Multi-Family) 8.1% 7/1/13 Aa 2,000 2,176
(Single-Family Mtg.) Series Aa2 1,755 1,805
54 A, 5.375% 10/1/28 (h)
Series 44 C, 6.65% 10/1/21 (h) Aa 10,000 10,707
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PENNSYLVANIA - CONTINUED
Philadelphia Gen. Oblig.:
6.25% 5/15/11 (MBIA Insured) Aaa $ 3,400 $ 3,845
6.25% 5/15/13 (MBIA Insured) Aaa 3,835 4,335
Philadelphia Hosp. & Higher
Ed. Facilities Auth. Hosp.
Rev. Rfdg. (Pennsylvania
Hosp.):
5.35% 7/1/99 (Escrowed to Baa3 1,335 1,352
Maturity) (i)
5.7% 7/1/01 (Escrowed to Baa3 4,405 4,620
Maturity) (i)
5.95% 7/1/03 (Escrowed to Baa3 4,000 4,341
Maturity) (i)
Philadelphia Muni. Auth. Rev.
Rfdg. Series D:
6% 7/15/03 Baa2 250 262
6.125% 7/15/08 Baa2 4,000 4,239
Philadelphia Wtr. & Swr. Rev. Aaa 3,000 2,269
(Cap. Appreciation) 14th
Series, 0% 10/1/05 (MBIA
Insured)
Philadelphia Wtr. & Wastewtr.
Rev.:
5% 6/15/12 (FGIC Insured) Aaa 3,000 3,033
6.25% 8/1/09 (MBIA Insured) Aaa 3,230 3,748
6.25% 8/1/10 (MBIA Insured) Aaa 2,000 2,334
6.75% 8/1/04 (MBIA Insured) Aaa 3,000 3,417
6.75% 8/1/05 (MBIA Insured) Aaa 2,500 2,894
Pittsburgh Gen. Oblig. Series Aaa 3,000 3,256
B, 6.25% 9/1/16 (MBIA
Insured) (Pre-Refunded to
9/1/01 @ 102) (i)
Pittsburgh Wtr. & Swr. Auth.
Wtr. & Swr. Sys. Rev. Rfdg.:
(Cap. Appreciation) Series A:
0% 9/1/04 (FGIC Insured) Aaa 3,900 3,089
(Escrowed to Maturity) (i)
0% 9/1/06 (FGIC Insured) Aaa 3,000 2,167
(Escrowed to Maturity) (i)
Series A, 4.75% 9/1/16 (FGIC Aaa 15,335 14,867
Insured)
Wyoming Ind. Dev. Auth. Poll. Aa2 4,300 4,666
Cont. Rev. Rfdg. (Proctor &
Gamble Paper Proj.) 5.55%
5/1/10
180,439
PUERTO RICO - 0.3%
Puerto Rico Commonwealth Hwy. Baa1 16,125 15,858
& Trans. Auth. Rev. Series
A, 5% 7/1/38
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
RHODE ISLAND - 0.1%
Rhode Island Depositor Econ. Aaa $ 2,645 $ 2,956
Protection Corp. Spl. Oblig.
Rfdg. Series A, 5.75% 8/1/12
(MBIA Insured)
SOUTH CAROLINA - 1.4%
Charleston County Health
Facilities Rev. Rfdg. (1st.
Mtg. Episcopal Proj.):
Series A, 9.75% 4/1/16 - 2,885 3,275
(Pre-Refunded to 4/1/01 @
102) (i)
Series B, 9.75% 4/1/16 - 2,030 2,305
(Pre-Refunded to 4/1/01 @
102) (i)
Charlston County Gen. Oblig. Aa3 2,500 2,752
6% 6/1/13
Lexington County Health Svcs. Aaa 3,000 3,326
District, Inc. Hosp. Rev. 7%
10/1/08 (FSA Insured)
(Pre-Refunded to 10/1/01 @
102) (i)
Piedmont Muni. Pwr. Agcy.
Elec. Rev.:
Rfdg. Series B, 5.25% 1/1/11 Aaa 9,125 9,587
(MBIA Insured)
5.5% 1/1/10 (MBIA Insured) Aaa 1,455 1,586
5.5% 1/1/10 (MBIA Insured) Aaa 1,135 1,248
(Escrowed to Maturity) (i)
5.6% 1/1/09 (MBIA Insured) Aaa 2,945 3,229
5.6% 1/1/09 (MBIA Insured) Aaa 2,295 2,548
(Escrowed to Maturity) (i)
Richland County Hosp. Aaa 1,500 1,824
Facilities Rev. (Comnty.
Provider Pooled Ln. Prog.)
Series A, 7.125% 7/1/17
(CGIC Insured) (FSA Insured)
(Escrowed to Maturity) (i)
South Carolina Ed. Assistance
Auth. Rev. (Student Ln.):
6.4% 9/1/02 (h) - 1,500 1,606
6.625% 9/1/06 (h) AA 10,775 11,749
South Carolina Cap. Impt. Aaa 2,300 2,519
Rev. Gen. Oblig. (St. Cap.
Impt.) Series B, 5.75% 8/1/04
South Carolina Pub. Svcs.
Auth. Rev. Rfdg. Series A:
5.75% 1/1/10 (MBIA Insured) Aaa 4,705 5,151
6.25% 1/1/03 (AMBAC Insured) Aaa 2,500 2,724
6.25% 1/1/04 (MBIA Insured) Aaa 2,565 2,839
6.375% 7/1/21 (AMBAC Insured) Aaa 3,750 4,041
6.5% 1/1/08 (MBIA Insured) Aaa 3,530 4,064
66,373
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
SOUTH DAKOTA - 0.0%
South Dakota Lease Rev. Rfdg. Aaa $ 1,000 $ 1,189
(Trust Ctfs.) Series A,
6.625% 9/1/12 (CGIC Insured)
(FSA Insured)
TENNESSEE - 1.3%
Johnson City Elec. Rev. 5.15% Aaa 5,000 5,106
5/1/23 (MBIA Insured)
Knox County Health Edl. &
Hsg. Facilities Auth. Board
Hosp. Facilities Rev. Rfdg.
(Fort Sanders Alliance
Proj.) Series C:
5.75% 1/1/14 (MBIA Insured) Aaa 2,000 2,197
7.25% 1/1/10 (MBIA Insured) Aaa 2,660 3,292
Memphis-Shelby County Arpt.
Auth. Arpt. Rev. Rfdg.:
Series A:
6% 2/15/05 (MBIA Insured) (h) Aaa 1,000 1,100
6.25% 2/15/09 (MBIA Insured) Aaa 1,500 1,713
(h)
6.25% 2/15/10 (MBIA Insured) Aaa 1,000 1,148
(h)
6.25% 2/15/11 (MBIA Insured) Aaa 1,415 1,634
(h)
Series B, 6.5% 2/15/09 (MBIA Aaa 500 581
Insured) (h)
Metro Nashville & Davidson Aaa 5,600 7,194
County Wtr. & Swr. Rev.
Rfdg. (Cap. Appreciation) 0%
1/1/12 (FGIC Insured) (b)
Montgomery County Health Edl. Baa2 10,700 10,554
& Hsg. Facilities Board
Hosp.Rev. (Rfdg. & Impt.
Clarksville Reg'l. Health
Sys.) 5.375% 1/1/28
Shelby County Pub. Impt. Rev.
Rfdg. Series A:
5% 3/1/20 Aa2 18,300 18,370
6.75% 4/1/04 Aa2 3,000 3,398
Tennessee Gen. Oblig. Series Aaa 2,355 2,644
A, 7% 3/1/03
58,931
TEXAS - 10.1%
Allen Independent School
District Rfdg. (Cap.
Appreciation):
0% 2/15/04 Aaa 2,120 1,721
0% 2/15/05 Aaa 2,120 1,646
Alliance Arpt. Auth. Spl. Baa1 4,000 4,288
Facilities Rev.
(AMR/American Airlines, Inc.
Proj.) 7.5% 12/1/29
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
TEXAS - CONTINUED
Austin Independent School
District School Bldg.:
Rfdg. (Cap. Appreciation):
0% 8/1/00 Aaa $ 4,275 $ 4,036
0% 8/1/02 Aaa 6,000 5,229
8.125% 8/1/01 (Escrowed to Aaa 500 557
Maturity) (i)
Austin Util. Sys. Rev. Rfdg.
(Cap. Appreciation):
Series A:
0% 11/15/01 (MBIA Insured) Aaa 4,000 3,592
0% 11/15/08 (MBIA Insured) Aaa 3,895 2,529
0% 11/15/09 (AMBAC Insured) Aaa 4,000 2,460
0% 11/15/10 (AMBAC Insured) Aaa 2,400 1,396
Birdville Independent School Aaa 8,665 4,964
District Rfdg. (Cap.
Appreciation) 0% 2/15/11
Brazos River Auth. Poll. Baa1 6,620 6,772
Cont. Rev. (Texas Util.
Elec. Co. Proj.) Series A,
8.25% 1/1/19
Cedar Hill Independent School Aaa 1,575 972
District Rfdg. (Cap.
Appreciation) 0% 8/15/09
Conroe Independent School
District Rfdg. (Cap.
Appreciation) Series B:
0% 2/15/07 Aaa 2,360 1,675
0% 2/15/08 Aaa 3,000 2,025
0% 2/15/09 Aaa 1,100 704
0% 2/15/10 Aaa 2,805 1,701
0% 2/15/11 Aaa 1,500 859
Corpus Christi Independant
School District Rfdg. (Cap.
Appreciation):
0% 8/15/01 Aaa 1,535 1,391
0% 8/15/02 Aaa 2,165 1,884
Cypress-Fairbanks Independent
School District Rfdg. (Cap.
Appreciation):
Series A, 0% 2/15/12 Aaa 7,100 3,846
0% 2/1/04 Aaa 4,250 3,456
Dallas Independent School Aaa 10,925 7,500
District Rfdg. (Cap.
Appreciation) 0% 8/15/07
Dallas Gen. Oblig.:
(Cap. Appreciation) 0% 2/15/03 Aaa 5,115 4,370
4.5% 2/15/14 Aaa 4,900 4,798
Dallas Hsg. Corp. Cap. Proj.
Rev. Rfdg. (Section 8
Assorted Projs.):
7.7% 8/1/05 Baa2 1,100 1,145
7.85% 8/1/13 Baa2 1,000 1,043
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
TEXAS - CONTINUED
Dallas-Fort Worth Reg'l.
Arpt. Rev. Rfdg.:
(Joint Dallas/Fort Worth Aaa $ 2,295 $ 2,631
Int'l. Arpt.) 6.5% 11/1/05
(FGIC Insured)
Series A, 7.375% 11/1/12 Aaa 1,000 1,176
(FGIC Insured)
El Paso Arpt. Rev. (El Paso Aaa 1,000 1,045
Int'l. Arpt.) 5.125% 8/15/04
(FGIC Insured) (h)
El Paso Prop. Fin. Auth. Aaa 1,485 1,599
Single Family Mtg. Rev.
(GNMA Mtg.-Backed Securities
Proj.) Series A, 8.7%
12/1/18, LOC Fannie Mae (h)
El Paso Wtr. & Swr. Rev.
Rfdg. (Cap. Appreciation):
0% 3/1/05 (MBIA Insured) Aaa 2,650 2,053
0% 3/1/06 (MBIA Insured) Aaa 3,700 2,743
Fort Bend Independent School Aaa 2,500 2,893
District 7% 2/15/05
Garland Independent School Aaa 5,000 4,445
District Series A, 4% 2/15/17
Grapevine-Colleyville Aaa 2,580 1,877
Independent School District
Rfdg. (Cap. Appreciation) 0%
8/15/06
Harris County Hosp. Dist Mtg. Aaa 3,000 3,683
Rev. Rfdg. 7.4% 2/15/10
(AMBAC Insured)
Harris County Gen. Oblig.:
(Toll Road Sub Lien) Series Aa2 2,000 2,457
A, 7% 8/15/09
Rfdg. (Toll Road Sub Lien):
0% 8/1/06 Aa2 4,245 3,129
0% 8/1/08 Aa2 8,005 5,373
Houston Independent School Aaa 6,400 3,584
District Rfdg. Series A, 0%
8/15/11
Houston Wtr. & Swr. Sys. Rev. Aaa 6,735 4,841
Rfdg. (Jr. Lien) Series C,
0% 12/1/06 (AMBAC Insured)
Humble Independent School Aaa 3,280 2,329
District Rfdg. (Cap.
Appreciation) 0% 2/15/07
Hurst Euless Bedford
Independent School District
Rfdg. (Cap. Appreciation):
0% 8/15/11 Aaa 3,620 2,027
0% 8/15/12 Aaa 5,105 2,702
0% 8/15/13 Aaa 3,610 1,803
Irving Independent School Aaa 7,770 7,169
District (Cap. Appreciation)
0% 2/15/01
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
TEXAS - CONTINUED
Katy Independent School
District Rfdg. (Cap.
Appreciation):
Series A, 0% 2/15/07 Aaa $ 2,450 $ 1,739
0% 8/15/11 Aaa 4,170 2,335
Keller Independent School
District Rfdg.:
Series A, 5.125% 8/15/25 Aaa 5,000 5,023
5% 8/15/30 Aaa 15,000 14,862
Leander Independent School Aaa 300 376
District 7.5% 8/15/08
Lower Colorado River Auth.
Rev.:
Rfdg.:
(Cap. Appreciation) 0% 1/1/09 Aaa 3,000 1,918
(MBIA Insured) (Escrowed to
Maturity) (i)
(Junoir Lien-4th Supplement) Aaa 6,000 6,341
5.25% 1/1/15 (Escrowed to
Maturity) (i)
5.25% 1/1/05 Aa3 7,500 7,933
Lower Neches Valley Auth. Aa2 36,455 39,773
Ind. Dev. Corp. Swr.
Facilities Rev. (Mobil Oil
Refining Corp. Proj.) 6.4%
3/1/30 (h)
Lower Neches Valley Auth. Aa2 9,500 10,374
Ind. Dev. Corp. Envir. Rev.
(Mobil Oil Refining Corp.
Proj.) 6.35% 4/1/26 (h)
Matagorda County Navigation Aaa 1,700 1,768
District #1 Rev. Rfdg.
(Houston Lt. & Pwr. Proj.)
Series C, 7.125% 7/1/19
(FGIC Insured)
Midlothian Independent School
District Rfdg. (Cap.
Appreciation):
0% 2/15/07 Aaa 1,935 1,374
0% 2/15/09 Aaa 1,970 1,261
0% 2/15/10 Aaa 1,525 925
North Central Health Aa2 25,400 27,753
Facilities Dev. Corp. Hosp.
Rev. Series A, 6.85% 5/15/16
(Pre-Refunded to 5/15/01 @
102) (i)
Port Dev. Corp. Ind. Dev. - 1,000 1,028
Rev. Rfdg. (Cargill, Inc.
Proj.) 7.7% 3/1/07
Round Rock Independent School
District:
Rfdg & School Bldg. (Cap. Aaa 7,430 4,655
Appreciation) 0% 8/15/09
(MBIA Insured)
Rfdg. (Cap. Appreciation):
0% 2/15/01 Aaa 2,000 1,845
0% 2/15/08 Aaa 9,800 6,614
0% 8/15/10 (MBIA Insured) Aaa 5,000 2,964
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
TEXAS - CONTINUED
Round Rock Independent School
District: - continued
Series A, 7.5% 8/1/03 Aaa $ 1,300 $ 1,496
4.5% 8/1/17 Aaa 5,575 5,284
6.5% 8/1/04 Aaa 1,025 1,155
Sabine River Auth. Poll. Baa1 1,250 1,354
Cont. Rev. 8.25% 10/1/20 (h)
San Antonio Elec. & Gas Sys.
Rev.:
Rfdg.:
(Cap. Appreciation):
Series 1991 B, 0% 2/1/05 Aaa 12,285 9,552
(FGIC Insured)
Series A, 0% 2/1/05 (AMBAC Aaa 5,850 4,548
Insured)
Series B:
0% 2/1/07 (FGIC Insured) Aaa 10,000 7,117
0% 2/1/08 (FGIC Insured) Aaa 6,340 4,259
0% 2/1/09 (FGIC Insured) Aaa 2,000 1,274
0% 2/1/10 (FGIC Insured) Aaa 14,000 8,437
5.25% 2/1/10 Aa1 11,000 11,659
Series B, 6% 2/1/14 Aa1 585 595
5.75% 2/1/11 Aa1 12,010 12,606
San Antonio Gen. Oblig. Rfdg. Aaa 1,920 1,399
(Cap. Appreciation) Series
C, 0% 8/1/06 (MBIA Insured)
San Antonio Independent Aaa 24,010 24,170
School District 5.125%
8/15/22
San Antonio Wtr. Rev.:
(Cap. Appreciation) 0% 5/1/12 Aaa 5,500 2,235
(AMBAC Insured)
(Pre-Refunded to 5/1/00 @
42.652) (i)
6.5% 5/15/10 (MBIA Insured) Aaa 1,690 1,842
6.5% 5/15/10 (MBIA Insured) Aaa 440 498
(Escrowed to Maturity) (i)
6.5% 5/15/10 (MBIA Insured) Aaa 500 554
(Pre-Refunded to 5/15/02 @
102) (i)
Spring Branch Independent
School District Rev. Rfdg.
(Cap. Appreciation):
0% 2/1/05 Aaa 5,725 4,451
0% 2/1/06 Aaa 5,710 4,248
Spring Independent School
District:
Rfdg. (Cap. Appreciation) 0% Aaa 3,000 2,660
2/15/02
4.875% 8/15/10 Aaa 4,000 4,134
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
TEXAS - CONTINUED
Texarkana Health Facilities Aaa $ 1,750 $ 1,878
Dev. Corp. Hosp. Rev.
(Wadley Reg'l. Med. Ctr.
Proj.) 7% 10/1/05 (MBIA
Insured)
Texas A & M Univ. Permanent
Univ. Fund:
Rfdg. 5.6% 7/1/05 Aaa 3,000 3,290
5.5% 7/1/04 Aaa 3,850 4,161
Texas A & M Univ. Rev. Rfdg. Aa2 1,610 1,698
(Fing. Sys.) 5.5% 5/15/02
Texas Muni. Pwr. Agcy. Rev.
Rfdg. (Cap. Appreciation):
0% 9/1/04 (AMBAC Insured) Aaa 5,900 4,705
0% 9/1/05 (AMBAC Insured) Aaa 13,000 9,871
Texas Pub. Fin. Auth. Aa2 5,350 5,645
(College Student Ln.) 5.8%
8/1/05 (h)
Texas Pub. Fin. Auth. Bldg.
Rev. Rfdg. (Cap.
Appreciation):
Series 1990, 0% 2/1/12 (MBIA Aaa 4,400 2,370
Insured)
0% 2/1/09 (MBIA Insured) Aaa 2,000 1,274
Texas Pub. Fin. Auth.:
Rfdg.:
(Veterans Land) 7.4% 12/1/20 Aa2 2,500 2,703
Series A, 0% 10/1/01 (AMBAC Aaa 9,420 8,495
Insured)
Series A, 5% 10/1/14 Aa2 5,000 5,044
Univ. of Texas Permanent
Univ. Fund:
(Univ. Fund Proj.) 5.25% Aaa 7,080 7,577
7/1/11
5% 7/1/10 Aaa 4,000 4,200
Univ. of Texas Rev. Rfdg.
(Fing. Sys.) Series A:
6% 8/15/04 Aa1 1,170 1,297
6% 8/15/05 Aa1 1,000 1,119
Whitehouse Independent School Aaa 5,790 5,758
District Rfdg. 5% 2/15/23
463,591
UTAH - 3.3%
Intermountain Pwr. Agcy. Rev.:
(Cap. Appreciation) 0% 7/1/21 Aaa 45,775 5,279
(Pre-Refunded to 7/1/00 @
12.2012) (i)
Rfdg.:
Series A:
6% 7/1/16 (AMBAC Insured) Aaa 15,345 16,984
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
UTAH - CONTINUED
Intermountain Pwr. Agcy.
Rev.: - continued
Rfdg.:
Series A:
6.5% 7/1/10 (AMBAC Insured) Aaa $ 1,635 $ 1,948
6.5% 7/1/11 (AMBAC Insured) Aaa 1,000 1,196
Series B:
0% 7/1/00 (MBIA Insured) Aaa 4,435 4,201
0% 7/1/01 (AMBAC Insured) Aaa 22,000 20,067
5.75% 7/1/16 (MBIA Insured) Aaa 30,260 33,187
Series D, 5% 7/1/21 (MBIA Aaa 12,100 11,923
Insured)
Series G, 0% 7/1/12 Aaa 1,660 1,848
(Pre-Refunded to 1/1/03 @
101) (b)(i)
Rfdg. Spl. Oblig. Sixth Aaa 29,500 32,698
Series B, 6% 7/1/16 (MBIA
Insured)
Spl. Oblig. Sixth Series B:
6.5% 7/1/05 (MBIA Insured) Aaa 2,000 2,268
6.5% 7/1/10 (MBIA Insured) Aaa 3,800 4,528
Jordan School District 7.625% Aa3 2,000 2,397
6/15/05
Salt Lake City Hosp. Rev. AAA 2,975 3,871
(Intermountain Health Care
Hosp., Inc.) Series, 8.125%
5/15/15 (Escrowed to
Maturity) (i)
South Salt Lake City Ind. - 3,650 4,021
Rev. (Price Savers Wholesale
Club Proj.) 9% 11/15/13
Utah Board of Regents Student Aaa 5,000 5,006
Ln. Rev. 4.65% 5/1/06 (h)
Utah Hsg. Fin. Agcy. Single AAA 260 272
Family Mtg. Rev. (Single
Family Mtg.) Series G,
9.25% 7/1/19 (h)
151,694
VERMONT - 0.1%
Vermont Ind. Dev. Auth. Ind. - 4,350 4,709
Dev. Rev. (Radisson Hotel)
Series B 1, 7.75% 11/15/15
VIRGINIA - 1.5%
Fairfax County Econ. Dev. A1 3,700 3,832
Auth. Resource Recovery Rev.
(Ogden Martin Sys. Proj.)
Series A, 7.75% 2/1/11 (h)
Hampton Museum Rev. Rfdg.:
5.25% 1/1/09 A 3,825 3,957
5.25% 1/1/14 A 4,500 4,529
Henrico County Ind. Dev.
Auth. Pub. Facilities Lease
Rev. (Henrico County Reg'l.
Jail Proj.):
7.5% 8/1/04 Aa2 2,455 2,894
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
VIRGINIA - CONTINUED
Henrico County Ind. Dev.
Auth. Pub. Facilities Lease
Rev. (Henrico County Reg'l.
Jail Proj.): - continued
7.5% 8/1/05 Aa2 $ 2,590 $ 3,109
Loudoun County Ind. Dev.
Auth. Residential Care
Facilities Rev. (Falcons
Landing Proj.) Series A:
8.75% 11/1/24 (Pre-Refunded Aaa 14,955 19,062
to 11/1/04 @ 103) (i)
9.25% 11/1/04 (Escrowed to Aaa 1,100 1,303
Maturity) (i)
Peninsula Ports Auth. Hosp. Aa 1,500 1,526
Facilities Rev. Rfdg.
(Whittaker Memorial Hosp.
Proj.) 8.7% 8/1/23
Richmond Metro Auth. Aaa 2,645 2,895
Expressway Rev. Rfdg. Series
A, 6% 7/15/08 (FGIC Insured)
(Pre-Refunded to 7/15/02 @
102) (i)
Richmond Gen. Oblig. Rfdg. Aaa 1,725 1,848
Series B, 5.5% 1/15/04
(FGIC Insured)
Southeastern Pub. Svc. Auth. Aaa 4,000 4,327
Rev. Rfdg. Sr. Series A,
5.25% 7/1/10 (MBIA Insured)
Virginia Beach Dev. Auth.
Hosp. Facilities Rev.
(Virginia Beach Gen. Hosp.
Proj.):
5.125% 2/15/18 (AMBAC Insured) Aaa 3,100 3,182
6% 2/15/12 (AMBAC Insured) Aaa 2,150 2,442
6% 2/15/13 (AMBAC Insured) Aaa 1,460 1,661
Virginia Commonwealth Trans. Aa2 5,000 5,028
Board Trust Rev. Rfdg. (U.S.
Rte. 58 Corridor Prog.)
Series C, 5.125% 5/15/19
Virginia Hsg. Dev. Auth. Aa1 1,890 2,026
Multi-family Hsg. Rev.
Series I, 5.95% 5/1/09 (h)
Virginia Pub. Bldg. Auth. Aa2 3,800 4,015
Pub. Facilities Rev. Rfdg.
Series A, 5% 8/1/05
Virginia Resouces Auth. Wtr. AA 180 184
& Swr. Rev. Series A, 7.7%
11/1/10 (Pre-Refunded to
5/1/99 @ 102) (i)
67,820
WASHINGTON - 5.2%
Benton County Pub. Util. Aaa 1,740 1,924
District #1 Elec. Rev. Rfdg.
6% 11/1/04 (AMBAC Insured)
Douglas County Pub. Util. A 2,790 3,595
District #1 Wells Hydroelec.
Rev. Rfdg. Series A, 8.75%
9/1/18
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
WASHINGTON - CONTINUED
King County Gen. Oblig. Aa1 $ 3,300 $ 3,687
Series D, 5.75% 12/1/11
Port of Seattle Gen. Oblig.
Series B:
5.5% 9/1/09 (FGIC Insured) (h) Aaa 4,010 4,286
5.6% 9/1/10 (FGIC Insured) (h) Aaa 4,230 4,520
Port Seattle Gen. Oblig. 5.8% Aa1 4,000 4,349
5/1/09 (h)
Port Seattle Passenger Aaa 7,930 8,292
Facilities Charge Rev.
Series B, 5% 12/1/06 (AMBAC
Insured) (h)
Washington Gen. Oblig.:
(Motor Vehicle Fuel Tax) Aa1 2,655 3,115
Series B, 7% 9/1/05
Rfdg.:
Series R 93A, 5.6% 9/1/04 Aa1 2,500 2,710
Series R 96B, 5.5% 7/1/01 Aa1 5,000 5,215
Series R 96C, 6% 7/1/04 Aa1 2,000 2,203
Series 1996 A, 6.75% 7/1/02 Aa1 3,560 3,913
Series A, 6.5% 7/1/03 Aa1 1,000 1,111
Series C, 5% 7/1/05 Aa1 4,555 4,818
Washington Pub. Pwr. Supply
Sys. Nuclear Proj. #1 Rev.
Rfdg.:
(Bonneville Pwr. Aa1 1,000 1,207
Administration) Series B,
7% 7/1/08
Series A, 7% 7/1/08 Aa1 500 604
Series B, 5.125% 7/1/13 Aa1 10,000 10,163
Washington Pub. Pwr. Supply
Sys. Nuclear Proj. #2 Rev.:
Rfdg.:
(Bonneville Pwr. Aaa 6,500 6,855
Administration) Series B,
5.625% 7/1/12 (MBIA Insured)
Series A:
0% 7/1/11 (MBIA Insured) Aaa 1,350 755
4.8% 7/1/04 Aa1 15,000 15,522
5% 7/1/00 Aa1 3,660 3,737
5% 7/1/01 Aa1 6,000 6,172
5.5% 7/1/02 Aa1 9,050 9,523
5.9% 7/1/04 Aa1 2,850 3,104
6% 7/1/07 Aa1 2,500 2,814
Series B, 5.5% 7/1/03 Aa1 3,000 3,187
Series C, 0% 7/1/05 Aa1 16,080 12,197
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
WASHINGTON - CONTINUED
Washington Pub. Pwr. Supply
Sys. Nuclear Proj. #2 Rev.:
- - continued
Series A:
4.8% 7/1/04 (MBIA Insured) Aaa $ 4,000 $ 4,153
6% 7/1/05 (AMBAC Insured) Aaa 3,565 3,937
Series C, 0% 7/1/05 (MBIA Aaa 11,000 8,387
Insured)
5.4% 7/1/12 Aa1 56,550 60,005
5.55% 7/1/10 (FGIC Insured) Aaa 16,000 16,879
7.07% 7/1/10 (FGIC Insured) Aaa 7,500 8,276
(j)
Washington Pub. Pwr. Supply
Sys. Nuclear Proj. #3 Rev.
Rfdg.:
(Cap. Appreciation) 0% 7/1/08 Aaa 3,000 1,975
(MBIA Insured)
Series B, 7.375% 7/1/04 Aa1 3,750 4,017
0% 7/1/06 (MBIA Insured) Aaa 5,000 3,632
240,839
WEST VIRGINIA - 0.5%
Maryland Health & Higher Edl. Aaa 22,650 23,661
Facilities Auth. Rev. (Ohio
Pwr. Co.-Kammer Proj.)
Series B, 5.45% 7/1/14 (MBIA
Insured)
WISCONSIN - 0.6%
Menomonee Falls Wtr. Sys. Aaa 3,375 3,672
Mtg. Rev. 5.875% 12/1/16
(FSA Insured)
Wisconsin Gen. Oblig. Series Aa2 12,890 15,002
A, 7% 5/1/05
Wisconsin Health & Edl. Aaa 4,000 4,424
Facilities Auth. Rev. (St.
Lukes Med. Ctr. Proj.) 7.1%
8/15/11 (MBIA Insured)
(Pre-Refunded to 8/15/01 @
102) (i)
Wisconsin Hsg. & Econ. Dev. Aa2 2,305 2,354
Auth. Home Ownership Rev.
Rfdg. Series F, 5.2% 9/1/26
(h)
25,452
WYOMING - 0.2%
Natrona County Hosp. Rev. A3 4,500 4,941
(Wyoming Med. Ctr. Proj.)
8.125% 9/15/10 (Pre-Refunded
to 9/15/00 @ 102) (i)
Wyoming Farm Ln. Board Cap. AA- 3,995 2,993
Facs. Rev. 0% 10/1/05
(Escrowed to Maturity) (i)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
WYOMING - CONTINUED
Wyoming Muni. Pwr. Agcy. Pwr. Aaa $ 1,500 $ 1,619
Supply Sys. Rev. Rfdg.
Series A, 6.125% 1/1/16
(MBIA Insured)
9,553
TOTAL MUNICIPAL BONDS 4,561,490
(Cost $4,250,758)
</TABLE>
MUNICIPAL NOTES - 0.0%
NEW YORK - 0.0%
Erie County Ind. Dev. Auth. 480 480
Ind. Dev. Rev. (The Holling
Press, Inc.) Series 1989 F,
3.5%, LOC Marine Midland
Bank NA, VRDN (e)(h) (Cost
$480)
CASH EQUIVALENTS - 0.7%
SHARES (000S)
Municipal Central Cash Fund 31,618 31,618
(f)(g) (Cost $31,618)
TOTAL INVESTMENT IN $ 4,593,588
SECURITIES - 100%
(Cost $4,282,856)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FUTURES CONTRACTS
EXPIRATION DATE UNDERLYING FACE AMOUNT (000S) UNREALIZED GAIN/(LOSS) (000S)
SOLD
310 Bond Buyer Municipal Bond Dec. 1998 $ (39,205) $ 302
Index Contracts
THE FACE VALUE OF FUTURES
SOLD AS A PERCENTAGE OF
TOTAL INVESTMENT IN
SECURITIES - 0.9%.
</TABLE>
SECURITY TYPE ABBREVIATION
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(b) Debt obligation initially issued in zero coupon form which
converts to coupon form at a specified rate and date. The rate shown
is the rate at period end.
(c) Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
(d) Security or 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 $1,163,000.
(e) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(f) Information in this report regarding holdings by state and
security types does not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of its most recent fiscal period end is available upon request.
(g) At the period end, the seven-day yield of the Municipal Central
Cash Fund was 3.31%. The yield refers to the income earned by
investing in the fund over the seven-day period, expressed as an
annual percentage.
(h) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(i) Security collateralized by an amount sufficient to pay interest
and principal.
(j) Coupon is inversely indexed to a floating interest rate. The price
will be more volatile than the price of a comparable fixed rate
security. The rate shown is the rate at period end.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investments in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 84.3% AAA, AA, A 84.9%
Baa 9.8% BBB 7.6%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by Moody's or S&P amounted to 2.4%. FMR has
determined that unrated debt securities that are lower quality account
for 0.0% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a
percentage of total value of investments in securities, is as follows:
General Obligations 27.1%
Electric Utilities 16.2
Transportation 12.1
Health Care 9.0
Escrowed/Pre-Refunded 8.8
Water & Sewer 7.3
Special Tax 5.3
Others (individually less 14.2
than 5%)
TOTAL 100.0%
INCOME TAX INFORMATION
At November 30, 1998, the aggregate cost of investment securities for
income tax purposes was $4,282,879,000. Net unrealized appreciation
aggregated $310,709,000, of which $311,850,000 related to appreciated
investment securities and $1,141,000 related to depreciated investment
securities.
The fund hereby designates approximately $12,906,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
At November 30, 1998, the fund had a capital loss carryforward of
approximately $40,979,000 of which $564,000, $533,000, $20,771,000,
$9,163,000, and $9,948,000 will expire on November 30, 2000, 2001,
2002, 2003, and 2005, respectively. All of the loss carryforwards were
acquired in the mergers and are available to offset future capital
gains of the fund to the extent provided by regulations (see Note 7 of
Notes to Financial Statements).
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT) NOVEMBER 30, 1998
ASSETS
Investment in securities, at $ 4,593,588
value (cost $4,282,856) -
See accompanying schedule
Receivable for fund shares 1,697
sold
Interest receivable 69,647
Other receivables 199
TOTAL ASSETS 4,665,131
LIABILITIES
Payable for investments $ 6,460
purchased Regular delivery
Delayed delivery 7,283
Payable for fund shares 9,188
redeemed
Distributions payable 5,396
Accrued management fee 1,543
Payable for daily variation 145
on futures contracts
Other payables and accrued 943
expenses
TOTAL LIABILITIES 30,958
NET ASSETS $ 4,634,173
Net Assets consist of:
Paid in capital $ 4,363,846
Accumulated undistributed net (40,707)
realized gain (loss) on
investments
Net unrealized appreciation 311,034
(depreciation) on investments
NET ASSETS, for 360,736 $ 4,634,173
shares outstanding
NET ASSET VALUE, offering $12.85
price and redemption price
per share ($4,634,173
(divided by) 360,736 shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED
NOVEMBER 30, 1998
INTEREST INCOME $ 155,068
EXPENSES
Management fee $ 11,303
Transfer agent fees 2,979
Accounting fees and expenses 682
Non-interested trustees' 1
compensation
Custodian fees and expenses 58
Registration fees 382
Audit 74
Legal 32
Reports to shareholders 12
Miscellaneous 16
Total expenses before 15,539
reductions
Expense reductions (16) 15,523
NET INTEREST INCOME 139,545
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 3,885
Futures contracts (2,866) 1,019
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 69,132
Futures contracts 302 69,434
NET GAIN (LOSS) 70,453
NET INCREASE (DECREASE) IN $ 209,998
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS YEAR ENDED NOVEMBER 30, 1998 YEAR ENDED NOVEMBER 30, 1997
INCREASE (DECREASE) IN NET $ 139,545 $ 89,932
ASSETS
Operations Net interest income
Net realized gain (loss) 1,019 16,558
Change in net unrealized 69,434 19,742
appreciation (depreciation)
NET INCREASE (DECREASE) IN 209,998 126,232
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (139,545) (93,623)
From net interest income
From net realized gain (14,749) (4,382)
TOTAL DISTRIBUTIONS (154,294) (98,005)
Share transactions Net 542,258 273,883
proceeds from sales of shares
Net asset value of shares - 528,377
issued in exchange for the
net assets of Spartan
Municipal Income Fund (Note
7)
Net asset value of shares 2,152,869 -
issued in exchange for the
net assets of Spartan
Aggressive Municipal Fund,
Spartan Insured Municipal
Income Fund and Fidelity
Advisor Municipal Bond
Fund (Notes 6 & 7)
Reinvestment of distributions 115,173 74,006
Cost of shares redeemed (551,658) (422,033)
NET INCREASE (DECREASE) IN 2,258,642 454,233
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 2,314,346 482,460
IN NET ASSETS
NET ASSETS
Beginning of period 2,319,827 1,837,367
End of period $ 4,634,173 $ 2,319,827
OTHER INFORMATION
Shares
Sold 42,521 22,157
Issued in exchange for - 42,203
shares of Spartan Municipal
Income Fund (Note 7)
Issued in exchange for 168,501 -
shares of Spartan Aggressive
Municipal Fund, Spartan
Insured Municipal Income
Fund and Fidelity Advisor
Municipal Bond Fund (Notes
6 & 7)
Issued in reinvestment of 9,036 5,982
distributions
Redeemed (43,262) (34,228)
Net increase (decrease) 176,796 36,114
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED NOVEMBER 30,
1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
Net asset value, beginning $ 12.610 $ 12.430 $ 12.300 $ 11.040 $ 13.230
of period
Income from Investment .607 .607 .648 A .677 .755
Operations Net interest
income
Net realized and unrealized .320 .235 .109 1.260 (1.690)
gain (loss)
Total from investment .927 .842 .757 1.937 (.935)
operations
Less Distributions
From net interest income (.607) (.632) A (.623) (.677) (.755)
From net realized gain (.080) (.030) (.004) - (.500)
Total distributions (.687) (.662) (.627) (.677) (1.255)
Net asset value, end of period $ 12.850 $ 12.610 $ 12.430 $ 12.300 $ 11.040
TOTAL RETURN 7.54% 7.02% 6.39% 17.95% (7.74)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 4,634 $ 2,320 $ 1,837 $ 1,801 $ 1,693
(in millions)
Ratio of expenses to average .53% .55% .56% .57% .56%
net assets
Ratio of net interest income 4.75% 4.92% 5.32% 5.69% 6.21%
to average net assets
Portfolio turnover rate 25% B 31% B 53% 50% 48%
</TABLE>
A NET INTEREST INCOME PER SHARE IN 1996 REFLECTS A PAYMENT FROM AN
ISSUER IN BANKRUPTCY WHICH WAS DISTRIBUTED IN 1997.
B THE PORTFOLIO TURNOVER RATE DOES NOT INCLUDE THE ASSETS ACQUIRED IN
THE MERGERS.
NOTES TO FINANCIAL STATEMENTS
For the period ended November 30, 1998
1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan Municipal Income Fund (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
financial statements have been prepared in conformity with generally
accepted accounting principles which require management to make
certain estimates and assumptions at the date of the financial
statements. 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.
Securities for which quotations are not readily available are valued
at their fair value as determined in good faith under consistently
applied procedures under the general supervision of the Board of
Trustees. Short-term securities with remaining maturities of sixty
days or less for which quotations are not readily available are valued
at amortized cost or original cost plus accrued interest, both of
which approximate current value.
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 substantially 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
among 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.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for futures transactions, market discount, capital loss
carryforwards and losses deferred due to wash sales and futures. The
fund also utilized earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for
income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and
may affect the per-share allocation between net interest income and
realized and unrealized gain (loss). Accumulated undistributed net
realized gain (loss) on
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
investments may include temporary book and tax basis differences that
will reverse in a subsequent period. Any taxable gain remaining at
fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission, the fund may invest in the
Municipal Central Cash Fund (the Cash Fund) managed by Fidelity
Investments Money Management, Inc., an affiliate of Fidelity
Management & Research Company (FMR). The Cash Fund is an open-end
money market fund available only to investment companies and other
accounts managed by FMR and its affiliates. The Cash Fund seeks
preservation of capital, liquidity, and current income by investing in
high-quality, short-term municipal securities of various states and
municipalities. Income distributions from the Cash Fund are declared
daily and paid monthly from net interest income. Income distributions
earned by the fund are recorded as interest income in the accompanying
financial statements.
WHEN-ISSUED SECURITIES. The fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place a month or more
after the date of the transaction. The price of the underlying
securities is fixed at the time the transaction is negotiated. The
market values of the securities purchased on a when-issued or forward
commitment basis are identified as such in the fund's schedule of
investments. The fund may receive compensation for interest forgone in
the purchase of a when-issued security. Losses may arise due to
changes in the market value of the underlying securities, if the
counterparty does not perform under the contract, or if the issuer
does not issue the securities due to political, economic, or other
factors.
FUTURES CONTRACTS. The fund may use futures contracts to manage its
exposure to the bond market and to fluctuations in interest rates.
Buying futures tends to increase the fund's exposure to the underlying
instrument, while selling futures tends to decrease the fund's
exposure to the underlying instrument or hedge other fund investments.
Futures contracts involve, to varying degrees, risk of loss in excess
of the futures variation margin reflected in the Statement of Assets
and Liabilities. The underlying face amount at value of any open
futures contracts at period end is shown in the schedule of
investments under the caption "Futures Contracts." This amount
reflects each contract's exposure to the underlying instrument at
period end. Losses may arise from changes in the value of the
underlying instruments or if the counterparties do not perform under
the contracts' terms. Gains (losses) are realized upon
2. OPERATING POLICIES - CONTINUED
FUTURES CONTRACTS - CONTINUED
the expiration or closing of the futures contracts. Futures contracts
are valued at the settlement price established each day by the board
of trade or exchange on which they are traded.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $863,765,000 and $751,712,000, respectively.
The market value of futures contracts opened and closed during the
period amounted to $409,127,000 and $372,298,000, 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 and is based on the monthly average net assets of all the mutual
funds advised by FMR. The rates ranged from .1100% to .3700% for the
period. The annual individual fund fee rate is .25%. In the event that
these rates were lower than the contractual rates in effect during the
period, FMR voluntarily implemented the above rates, as they resulted
in the same or a lower management fee. For the period, the management
fee was equivalent to an annual rate of .38% of average net assets.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian and transfer and shareholder servicing agent for the fund.
UMB has entered into a sub-contract with Fidelity Service Company,
Inc. (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 account fees
and asset-based fees that vary according to account size and type of
account. FSC pays for 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, the transfer agent fees were equivalent to an annual
rate of .10% of average net assets.
5. EXPENSE REDUCTIONS.
The fund has entered into arrangements with its custodian and transfer
agent whereby credits realized as a result of uninvested cash balances
were used to reduce a portion of the fund's expenses. During the
period, the fund's custodian and transfer agent fees were reduced by
$7,000 and $9,000, respectively, under these arrangements.
6. SHARE TRANSACTIONS.
Share transactions in connection with mergers were as follows:
AMOUNTS IN THOUSANDS SHARES DOLLARS
Spartan Aggressive Municipal 72,669 $923,620
Fund
Spartan Insured Municipal 24,866 318,041
Income Fund
Fidelity Advisor Municipal 22 286
Bond Fund Class A
Class T 33 426
Class B 41 524
Institutional Class 11 135
Fidelity Municipal Bond Fund 70,859 909,837
(Initial Class of Fidelity
Advisor Municipal Bond Fund)
70,966 911,208
Total 168,501 $ 2,152,869
7. MERGER INFORMATION.
On September 17, 1998, the fund acquired all of the assets and assumed
all of the liabilities of Fidelity Advisor Municipal Bond Fund: Class
A, Class T, Class B, Institutional Class and Fidelity Advisor
Municipal Bond Fund (Initial Class of Fidelity Advisor Municipal Bond
Fund). The acquisition was approved by the Class A, Class T, Class B,
Institutional Class and Initial Class shareholders of Fidelity Advisor
Municipal Bond Fund on August 3, 1998. Based on the opinion of fund
counsel, the reorganization qualified as a tax-free reorganization for
federal income tax purposes with no gain or loss recognized to the
funds or their shareholders.
The fund's acquisition of Fidelity Advisor Municipal Bond Fund Class A
was accomplished by an exchange of 22,000 shares of the fund (each
valued at $12.84) for the 33,000 shares then outstanding (each valued
at $8.61) of Fidelity Advisor Municipal Bond Fund Class A. The fund's
acquisition of Fidelity Advisor Municipal Bond Fund Class T was
accomplished by an exchange of 33,000 shares of the fund (each valued
at $12.84) for the 49,000 shares then outstanding (each valued at
$8.62) of Fidelity Advisor Municipal Bond Fund Class T. The fund's
acquisition of Fidelity Advisor Municipal Bond Fund Class B was
accomplished by an exchange of 41,000 shares of the fund (each valued
at $12.84) for the 61,000 shares then outstanding (each valued at
$8.62) of Fidelity Advisor Municipal Bond Fund Class B. The fund's
acquisition of Fidelity Advisor Municipal Bond Fund Institutional
Class was accomplished by an exchange of 11,000 shares of the fund
(each valued at $12.84) for the 16,000 shares then outstanding (each
valued at $8.61) of Fidelity Advisor Municipal Bond Fund Institutional
Class. The fund's acquisition of Fidelity Municipal Bond Fund (Initial
Class of Fidelity Advisor Municipal
7. MERGER INFORMATION - CONTINUED
Bond Fund) was accomplished by an exchange of 70,859,000 shares of the
fund (each valued at $12.84) for the 105,672,000 shares then
outstanding (each valued at $8.61) of Fidelity Municipal Bond Fund
(Initial Class of Fidelity Advisor Municipal Bond Fund). Fidelity
Advisor Municipal Bond Fund's net assets, including $65,723,000 of
unrealized appreciation, were combined with the fund for total net
assets after the acquisition of $4,371,670,000.
On August 27, 1998, the fund acquired all of the assets and assumed
all of the liabilities of Spartan Insured Municipal Income Fund. The
acquisition, which was approved by the shareholders of Spartan Insured
Municipal Income Fund on July 15, 1998, was accomplished by an
exchange of 24,866,000 shares of the fund (each valued at $12.79) for
the 25,649,000 shares then outstanding (each valued at $12.40) of
Spartan Insured Municipal Income Fund. Based on the opinion of fund
counsel, the reorganization qualified as a tax-free reorganization for
federal income tax purposes with no gain or loss recognized to the
funds or their shareholders. Spartan Insured Municipal Income Fund's
net assets, including $22,083,000 of unrealized appreciation, were
combined with the fund for total net assets after the acquisition of
$3,454,350,000.
On August 20, 1998, the fund acquired all of the assets and assumed
all of the liabilities of Spartan Aggressive Municipal Fund. The
acquisition, which was approved by the shareholders of Spartan
Aggressive Municipal Fund on July 15, 1998, was accomplished by an
exchange of 72,669,000 shares of the fund (each valued at $12.71) for
the 77,680,000 shares then outstanding (each valued at $11.89) of
Spartan Aggressive Municipal Fund. Based on the opinion of fund
counsel, the reorganization qualified as a tax-free reorganization for
federal income tax purposes with no gain or loss recognized to the
funds or their shareholders. Spartan Aggressive Municipal Fund's net
assets, including $55,780,000 of unrealized appreciation, were
combined with the fund for total net assets after the acquisition of
$4,081,148,000.
On October 23, 1997, Fidelity Municipal Income Fund (currently Spartan
Municipal Income Fund) acquired all of the assets and assumed all of
the liabilities of Spartan Municipal Income Fund. The acquisition,
which was approved by the shareholders of Spartan Municipal Income
Fund on October 6, 1997, was accomplished by an exchange of 42,203,000
shares of Fidelity Municipal Income Fund (currently Spartan Municipal
Income Fund) (each valued at $12.52) for the 49,566,000 shares then
outstanding (each valued at $10.66) of Spartan Municipal Income Fund.
Based on the opinion of fund counsel, the reorganization qualified as
a tax-free reorganization for federal income tax purposes with no gain
or loss recognized to the funds or their shareholders. Spartan
Municipal Income Fund's net assets, including $19,989,000 of
unrealized appreciation were combined with Fidelity Municipal Income
Fund (currently Spartan Municipal Income Fund) for total net assets
after the acquisition of $2,294,530,000.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Court Street Trust and the Shareholders of
Spartan Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Spartan Municipal Income Fund (a fund of Fidelity Court Street Trust)
at November 30, 1998, the results of its operations, the changes in
its net assets and the financial highlights for the periods indicated,
in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to
as "financial statements") are the responsibility of the Spartan
Municipal Income Fund's management; our responsibility is to express
an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with
generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe
that our audits, which included confirmation of securities at November
30, 1998 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 11, 1999
DISTRIBUTIONS
The Board of Trustees of Spartan Municipal Income Fund voted to pay to
shareholders of record at the opening of business on record date, the
following distributions derived from capital gains realized from sales
of portfolio securities:
PAY DATE 12/29/97 12/31/98
RECORD DATE 12/26/97 12/30/98
SHORT-TERM
CAPITAL GAINS $.01 $.007
LONG-TERM
CAPITAL GAINS $.07 -
LONG-TERM
CAPITAL GAIN PERCENTAGES:
28% rate 12.53% -
20% rate 87.47% -
During fiscal year ended 1998, 100% of the fund's income dividends was
free from federal income tax, and 13.53% of the fund's income
dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 1999 of the applicable
percentages for use in preparing 1998 income tax returns.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
Dwight D. Churchill, Vice President
George A. Fischer, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Stanley N. Griffith, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
* INDEPENDENT TRUSTEES
HIY-ANN-0199 69046
1.539263.101
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
FIDELITY'S MUNICIPAL BOND FUNDS
Spartan(registered trademark) Arizona Municipal Income
Spartan California Municipal Income
Spartan Connecticut Municipal Income
Spartan Florida Municipal Income
Spartan Intermediate Municipal Income
Spartan Maryland Municipal Income
Spartan Massachusetts Municipal Income
Spartan Michigan Municipal Income
Spartan Minnesota Municipal Income
Spartan Municipal Income
Spartan New Jersey Municipal Income
Spartan New York Municipal Income
Spartan Ohio Municipal Income
Spartan Pennsylvania Municipal Income
Spartan Short-Intermediate
Municipal Income
THE FIDELITY TELEPHONE CONNECTION
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