AXP(SM)
High Yield
Tax-Exempt Fund
1999 SEMIANNUAL REPORT
(picture of) padlock
The goal of AXP High Yield Tax-Exempt Fund is to provide high yield generally
exempt from federal income taxes.
Distributed by American Express Financial Advisors Inc.
AMERICAN EXPRESS Financial Advisors
<PAGE>
More Yield, Less Taxes
Most of the time, making money means paying taxes. But investors still can enjoy
income that generally is free from federal taxes by taking advantage of
tax-exempt bonds. High Yield Tax-Exempt Fund strives to provide the maximum
amount of tax-free income by focusing on municipal bonds that pay above-average
interest. However, certain income may be subject to state or local or the
alternative minimum tax. To reduce the investment risk, the Fund holds a large,
widely diversified portfolio of bonds providing protection to shareholders
seeking to avoid the impact of default by an individual bond. The result may be
a superior after-tax return for investors in higher tax brackets.
CONTENTS
From the Chairman 3
From the Portfolio Manager 3
Fund Facts 5
The 10 Largest Holdings 6
Financial Statements (Fund) 7
Notes to Financial Statements (Fund) 10
Financial Statements (Portfolio) 16
Notes to Financial Statements (Portfolio) 19
Investments in Securities 22
<PAGE>
(picture of) Arne H. Carlson
Arne H. Carlson
Chairman of the board
From the Chairman
American Express(R) Funds held shareholder meetings in June 1999. Shareholders
approved all of the proposals advanced by management. Among the proposals were:
o The election of Board members and the selection of KPMG LLP as independent
auditors.
o Change in the Fund name from "IDS" to "AXP."
o A new shareholder service and distribution plan.
o Change with respect to fundamental investment policies.
No other business was presented at the meeting, which was concluded by a report
to shareholders from the Investment Department of American Express Financial
Corporation.
Thanks to all of you for your effort in reviewing the proxy material and voting
your proxies.
Arne H. Carlson
(picture of) Kurt Larson
Kurt Larson
Portfolio manager
From the Portfolio Manager
Rising interest rates put a damper on the bond market during the first half of
the Fund's fiscal year -- December 1998 through May 1999. The Fund's dividend
was essentially unaffected, however, resulting in a positive total return of
0.95% for the Fund's Class A shares.
Last December, with worries about a potential global recession on the wane,
investors refocused their attention on the remarkably robust U.S. economy.
Despite ongoing reports of still-benign inflation, they concluded that an
increase in consumer prices was becoming a greater possibility. The result was
increased selling pressure on bonds, which in turn drove long-term interest
rates up and bond prices down for much of the six months.
DEMAND MEETS SUPPLY
Looking at other market fundamentals, the supply of municipal bonds during the
period slacked off from an unusually high level in previous months. On the
demand side, both institutions and individuals maintained a healthy appetite,
comfortably absorbing the amount of new issues.
As for changes to the portfolio, there is little to report. I kept the duration
(a function of the average maturity of the bonds owned that determines the
Fund's approximate sensitivity to interest-rate swings) in basically a neutral
range. In the end, that meant the net asset value moved basically in tandem with
changes in municipal-bond interest rates. My main focus continued to be on
keeping the dividend as high as prudently possible. In keeping with that, I
added to investments in bonds with ratings of BBB and below, which provided an
ample level of interest income without exposing the Fund to undue credit risk.
At this writing (mid-June), I'm not expecting much change in the environment for
bonds. While interest rates will almost certainly bounce around over the short
term, I think they'll be confined to a reasonably narrow range. If that proves
true, bond prices should be able to at least hold their own in the months ahead.
Beyond that, concerns about a potential global economic upheaval stemming from
the Y2K computer conversion could spark a run toward U.S. bonds late in 1999.
That scenario is impossible to predict, of course, but if it happens, the
resulting boost for the bond market would be positive for the Fund.
Kurt Larson
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Fund Facts
Class A -- 6-month performance
(All figures per share)
Net asset value (NAV)
May 31, 1999 $4.60
Nov. 30, 1998 $4.68
Decrease $0.08
Distributions -- Dec. 1, 1998 - May 31, 1999
From income $0.13
From capital gains $ --
Total distributions $0.13
Total return* +0.95%**
Class B -- 6-month performance
(All figures per share)
Net asset value (NAV)
May 31, 1999 $4.59
Nov. 30, 1998 $4.68
Decrease $0.09
Distributions -- Dec. 1, 1998 - May 31, 1999
From income $0.12
From capital gains $ --
Total distributions $0.12
Total return* +0.59%**
Class Y -- 6-month performance
(All figures per share)
Net asset value (NAV)
May 31, 1999 $4.59
Nov. 30, 1998 $4.68
Decrease $0.09
Distributions -- Dec. 1, 1998 - May 31, 1999
From income $0.13
From capital gains $ --
Total distributions $0.13
Total return* +0.99%**
*The prospectus discusses the effect of sales charges, if any, on the various
classes.
**The total return is a hypothetical investment in the Fund with all
distributions reinvested.
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<TABLE>
<CAPTION>
The 10 Largest Holdings
Percent Value
(of net assets) (as of May 31, 1999)
New York City Municipal Water Financial Authority
Water & Sewer System Revenue Bonds Series A
<S> <C> <C> <C>
6.25% 2021 .98% $57,984,179
Eastern North Carolina Municipal Power Agency
Power System Refunding Revenue Bonds Series 1991A
5.75% 2019 .93 54,868,551
New Hampshire Industrial Development Authority
Pollution Control Revenue Bonds
State Public Service Series 1991B
7.50% 2021 .92 54,082,419
Northern California Power Agency Geothermal 3 Revenue Bonds
5.00% 2009 .87 51,149,857
Utah Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series 1996C
5.70% 2017 .82 48,162,920
Monroe County Michigan Pollution Control
Revenue Bonds Detroit Edison A.M.T.
7.75% 2019 .71 42,033,477
Dormitory Authority New York City University
System Consolidated 2nd Generation Resource
Revenue Bonds Series 1990C
6.00% 2016 .68 40,128,460
Puerto Rico Electric Power Agency Revenue Bonds Series N
6.00% 2010 .68 40,091,200
Washington Public Power Supply System
Nuclear Project 1 Revenue Bonds Series 1990A
6.00% 2017 .68 39,981,382
Texas Alliance Airport Authority Special Facility
Revenue Bonds American Airlines Series 1990 A.M.T.
7.50% 2029 .67 39,774,525
Note: Investment income from certain securities may be subject to the
Alternative Minimum Tax (A.M.T.).
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
(icon of) pie chart
The 10 holdings listed here
make up 7.94% of net assets
</TABLE>
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<CAPTION>
Financial Statements
Statement of assets and liabilities
AXP High Yield Tax-Exempt Fund, Inc.
May 31, 1999 (Unaudited)
Assets
<S> <C>
Investment in Tax-Free High Yield Portfolio (Note 1) $5,892,286,924
--------------
Liabilities
Dividends payable to shareholders 1,003,056
Accrued distribution fee 6,485
Accrued service fee 28,235
Accrued transfer agency fee 486
Accrued administrative services fee 4,856
Other accrued expenses 3,339
-----
Total liabilities 1,046,457
---------
Net assets applicable to outstanding capital stock $5,891,240,467
==============
Represented by
Capital stock-- $.01 par value (Note 1) $ 12,821,006
Additional paid-in capital 5,487,587,448
Undistributed net investment income 653,695
Accumulated net realized gain (loss) (Note 4) (122,252,973)
Unrealized appreciation (depreciation) on investments 512,431,291
-----------
Total-- representing net assets applicable to outstanding capital stock $5,891,240,467
==============
Net assets applicable to outstanding shares: Class A $5,574,286,103
Class B $ 316,741,545
Class Y $ 212,819
Net asset value per share of outstanding capital stock: Class A shares 1,213,118,888 $ 4.60
Class B shares 68,935,392 $ 4.59
Class Y shares 46,320 $ 4.59
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
Statement of operations
AXP High Yield Tax-Exempt Fund, Inc.
Six months ended May 31, 1999 (Unaudited)
Investment income
Income:
<S> <C>
Interest $ 187,618,715
-------------
Expenses (Note 2):
Expenses allocated from Tax-Free High Yield Portfolio 13,133,338
Distribution fee-- Class B 1,084,597
Transfer agency fee 1,187,684
Incremental transfer agency fee
Class A 132,475
Class B 15,462
Service fee
Class A 4,833,364
Class B 251,970
Class Y 1,582
Administrative services fees and expenses 899,231
Compensation of board members 8,285
Printing and postage 347,070
Registration fees 100,180
Audit fees 5,875
Other 16,411
------
Total expenses 22,017,524
Earnings credits on cash balances (Note 2) (94,814)
- -------
Total net expenses 21,922,710
----------
Investment income (loss) -- net 165,696,005
-----------
Realized and unrealized gain (loss) -- net Net realized gain (loss) on:
Security transactions (7,269,912)
Financial futures contracts (69,926)
-------
Net realized gain (loss) on investments (7,339,838)
Net change in unrealized appreciation (depreciation) on investments (106,376,516)
------------
Net gain (loss) on investments (113,716,354)
------------
Net increase (decrease) in net assets resulting from operations $ 51,979,651
==============
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
Statements of changes in net assets
AXP High Yield Tax-Exempt Fund, Inc.
May 31, 1999 Nov. 30, 1998
Six months ended Year ended
(Unaudited)
Operations and distributions
<S> <C> <C>
Investment income (loss)-- net $ 165,696,005 $ 332,169,566
Net realized gain (loss) on investments (7,339,838) (5,082,151)
Net change in unrealized appreciation (depreciation) on investments (106,376,516) 61,776,386
------------ ----------
Net increase (decrease) in net assets resulting from operations 51,979,651 388,863,801
---------- -----------
Distributions to shareholders from:
Net investment income
Class A (158,380,541) (320,696,664)
Class B (7,141,391) (11,052,190)
Class Y (88,956) (291,004)
------- --------
Total distributions (165,610,888) (332,039,858)
------------ ------------
Capital share transactions (Note 3)
Proceeds from sales
Class A shares (Note 2) 1,260,529,947 2,190,389,184
Class B shares 69,789,114 103,906,651
Class Y shares 14,145,744 15,951,744
Reinvestment of distributions at net asset value
Class A shares 111,556,751 217,522,599
Class B shares 5,910,747 8,764,909
Class Y shares 2,216 705
Payments for redemptions
Class A shares (1,412,152,581) (2,525,842,128)
Class B shares (Note 2) (22,836,087) (35,324,448)
Class Y shares (21,309,580) (17,386,399)
----------- -----------
Increase (decrease) in net assets from capital share transactions 5,636,271 (42,017,183)
--------- -----------
Total increase (decrease) in net assets (107,994,966) 14,806,760
Net assets at beginning of period 5,999,235,433 5,984,428,673
------------- -------------
Net assets at end of period $5,891,240,467 $5,999,235,433
============== ==============
Undistributed net investment income $ 653,695 $ 568,578
-------------- --------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
AXP High Yield Tax-Exempt Fund, Inc.
(Unaudited as to May 31, 1999)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 (as amended) as
a diversified, open-end management investment company. The Fund has 10 billion
authorized shares of capital stock.
The Fund offers Class A, Class B and Class Y shares.
o Class A shares are sold with a front-end sales charge.
o Class B shares may be subject to a contingent deferred sales charge and
automatically convert to Class A shares during the ninth calendar year
of ownership.
o Class Y shares have no sales charge and are offered only to qualifying
institutional investors.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fee and service fee (class specific
expenses) differs among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
Investment in Tax-Free High Yield Portfolio
The Fund invests all of its assets in Tax-Free High Yield Portfolio (the
Portfolio), a series of Tax-Free Income Trust (the Trust), an open-end
investment company that has the same objectives as the Fund. The Portfolio
invests primarily in medium- and lower-quality bonds and other debt obligations.
The Fund records daily its share of the Portfolio's income, expenses and
realized and unrealized gains and losses. The financial statements of the
Portfolio are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
The Fund records its investment in the Portfolio at the value that is equal to
the Fund's proportionate ownership interest in the Portfolio's net assets. The
percentage of the Portfolio owned by the Fund as of May 31, 1999 was 99.98%.
Valuation of securities held by the Portfolio is discussed in Note 1 of the
Portfolio's "Notes to financial statements" (included elsewhere in this report).
Use of estimates
Preparing financial statements that conform to generally accepted accounting
principles requires management to make estimates (e.g., on assets and
liabilities) that could differ from actual results.
Federal taxes
The Fund's policy is to comply with all sections of the Internal Revenue Code
that apply to regulated investment companies and to distribute all of its
taxable income to the shareholders. No provision for income or excise taxes is
thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts and losses deferred due to "wash sale" transactions.
The character of distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for
federal income tax purposes. Also, due to the timing of dividend distributions,
the fiscal year in which amounts are distributed may differ from the year that
the income or realized gains (losses) were recorded by the Fund.
Dividends to shareholders
Dividends from net investment income, declared daily and payable monthly, are
reinvested in additional shares of the Fund at net asset value or payable in
cash. Capital gains, when available, are distributed along with the last income
dividend of the calendar year.
2. EXPENSES AND SALES CHARGES
In addition to the expenses allocated from the Portfolio, the Fund accrues its
own expenses as follows:
The Fund has an agreement with American Express Financial Corporation (AEFC) to
provide administrative services. Under an Administrative Services Agreement, the
Fund pays AEFC a fee for administration and accounting services at a percentage
of the Fund's average daily net assets in reducing percentages from 0.04% to
0.02% annually. Additional administrative service expenses paid by the Fund are
office expenses, consultants' fees and compensation of officers and employees.
Under this agreement, the Fund also pays taxes, audit and certain legal fees,
registration fees for shares, compensation of board members, corporate filing
fees and any other expenses properly payable by the Fund and approved by the
board.
Under a separate Transfer Agency Agreement, American Express Client Service
Corporation (AECSC) maintains shareholder accounts and records. The Fund pays
AECSC an annual fee per shareholder account for this service as follows:
o Class A $19.50
o Class B $20.50
o Class Y $17.50
Under terms of a prior agreement that ended Jan. 31, 1999, the Fund paid a
transfer agency fee at an annul rate per shareholder account of $15.50 for Class
A and $16.50 for Class B. Under terms of a prior agreement that ended March 31,
1999, the Fund paid a transfer agency fee at an annual rate per shareholder
account of $15.50 for Class Y.
The Fund has agreements with American Express Financial Advisors Inc. for
distribution and shareholder services. Under a Plan and Agreement of
Distribution, the Fund pays a distribution fee at an annual rate of 0.75% of the
Fund's average daily net assets attributable to Class B shares. Effective July
1, 1999, the Fund will pay a distribution fee at an annual rate up to 0.25% of
the Fund's average daily net assets attributable to Class A shares and up to
1.00% of the Fund's average daily net assets attributable to Class B shares.
Under a Shareholder Service Agreement, the Fund pays a fee for service provided
to shareholders by financial advisors and other servicing agents. The fee is
calculated at a rate of 0.175% of the Fund's average daily net assets
attributable to Class A and Class B shares and 0.10% of the Fund's average daily
net assets attributable to Class Y shares. Effective July 1, 1999, the Fund will
convert the Shareholder Service Agreement with respect to Class A and Class B
shares into the Plan and Agreement of Distribution discussed above.
Sales charges received by American Express Financial Advisors Inc. for
distributing Fund shares were $5,930,812 for Class A and $186,774 for Class B
for the six months ended May 31, 1999.
During the six months ended May 31, 1999, the Fund's transfer agency fees were
reduced by $94,814 as a result of earnings credits from overnight cash balances.
<PAGE>
<TABLE>
<CAPTION>
3. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the periods indicated are as
follows:
Six months ended May 31, 1999
Class A Class B Class Y
<S> <C> <C> <C>
Sold 270,789,098 14,989,398 3,043,763
Issued for reinvested distributions 24,000,681 1,272,065 480
Redeemed (303,420,264) (4,907,507) (4,589,938)
------------ ---------- ----------
Net increase (decrease) (8,630,485) 11,353,956 (1,545,695)
---------- ---------- ----------
Year ended Nov. 30, 1998
Class A Class B Class Y
Sold 468,619,472 22,219,938 3,428,457
Issued for reinvested distributions 46,549,715 1,875,641 151
Redeemed (539,880,213) (7,554,155) (3,697,495)
------------ ---------- ----------
Net increase (decrease) (24,711,026) 16,541,424 (268,887)
----------- ---------- --------
</TABLE>
<PAGE>
4. CAPITAL LOSS CARRYOVER
For federal income tax purposes, the Fund has a capital loss carryover of
$47,884,156 as of Nov. 30, 1998, that will expire in 2002 through 2005 if not
offset by subsequent capital gains. It is unlikely the board will authorize a
distribution of any net realized capital gains until the available capital loss
carryover has been offset or expires.
5. BANK BORROWINGS
The Fund has a revolving credit agreement with U.S. Bank, N.A., whereby the Fund
is permitted to have bank borrowings for temporary or emergency purposes to fund
shareholder redemptions. The Fund must have asset coverage for borrowings not to
exceed the aggregate of 333% of advances equal to or less than five business
days plus 367% of advances over five business days. The agreement, which enables
the Fund to participate with other American Express funds, permits borrowings up
to $200 million, collectively. Interest is charged to each Fund based on its
borrowings at a rate equal to the Federal Funds Rate plus 0.30% or the
Eurodollar Rate (Reserve Adjusted) plus 0.20%. Borrowings are payable up to 90
days after such loan is executed. The Fund also pays a commitment fee equal to
its pro rata share of the amount of the credit facility at a rate of 0.05% per
annum. The Fund had no borrowings outstanding during the six months ended May
31, 1999.
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<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
Fiscal period ended Nov. 30,
Per share income and capital changesa
Class A
1999b 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $4.68 $4.64 $4.56 $4.66 $4.18
Income from investment operations:
Net investment income (loss) .13 .26 .27 .27 .28
Net gains (losses) (both realized and unrealized) (.08) .04 .08 (.10) .48
Total from investment operations .05 .30 .35 .17 .76
Less distributions:
Dividends from net investment income (.13) (.26) (.27) (.27) (.28)
Net asset value, end of period $4.60 $4.68 $4.64 $4.56 $4.66
Ratios/supplemental data
Net assets, end of period (in millions) $5,574 $5,722 $5,785 $6,001 $6,316
Ratio of expenses to average daily net assetsc .71%e .70% .70% .70% .68%
Ratio of net investment income (loss)
to average daily net assets 5.68%e 5.56% 5.85% 6.02% 6.31%
Portfolio turnover rate
(excluding short-term securities) 6% 14% 4% 9% 14%
Total returnd .95% 6.67% 7.86% 4.02% 18.64%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Six months ended May 31, 1999 (Unaudited).
c Effective fiscal year 1996, expense ratio is based on total expenses of the
Fund before reduction of earnings credits on cash balances.
d Total return does not reflect payment of a sales charge.
e Adjusted to an annual basis.
</TABLE>
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<TABLE>
<CAPTION>
Fiscal period ended Nov. 30,
Per share income and capital changesa
Class B Class Y
1999b 1998 1997 1996 1995f 1999b 1998 1997 1996 1995f
Net asset value, beginning
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
of period $4.68 $4.64 $4.56 $4.66 $4.46 $4.68 $4.64 $4.56 $4.66 $4.46
Income from investment operations:
Net investment
income (loss) .12 .22 .23 .24 .19 .13 .26 .27 .28 .22
Net gains (losses)
(both realized and
unrealized) (.09) .04 .08 (.10) .20 (.09) .04 .08 (.10) .20
Total from investment
operations .03 .26 .31 .14 .39 .04 .30 .35 .18 .42
Less distributions:
Dividends from net
investment income (.12) (.22) (.23) (.24) (.19) (.13) (.26) (.27) (.28) (.22)
Net asset value, end
of period $4.59 $4.68 $4.64 $4.56 $4.66 $4.59 $4.68 $4.64 $4.56 $4.66
Ratios/supplemental data
Net assets, end of period
(in millions) $317 $270 $190 $138 $71 $-- $7 $9 $21 $25
Ratio of expenses to
average daily net assetsc 1.47%d 1.45% 1.46% 1.46% 1.48%d .63%d .62% .61% .53% .54%d
Ratio of net investment
income (loss) to average
daily net assets 4.94%d 4.81% 5.06% 5.29% 5.36%d 5.46%d 5.63% 5.88% 6.15% 6.32%d
Portfolio turnover rate
(excluding short-term
securities) 6% 14% 4% 9% 14% 6% 14% 4% 9% 14%
Total returne .59% 5.85% 7.08% 3.22% 9.02% .99% 6.73% 7.96% 4.22% 9.15%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Six months ended May 31, 1999 (Unaudited).
c Effective fiscal year 1996, expense ratio is based on total expenses of the
Fund before reduction of earnings credits on cash balances.
d Adjusted to an annual basis.
e Total return does not reflect payment of a sales charge.
f Inception date was March 20, 1995.
</TABLE>
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<TABLE>
<CAPTION>
Financial Statements
Statement of assets and liabilities
Tax-Free High Yield Portfolio
May 31, 1999 (Unaudited)
Assets
Investments in securities, at value (Note 1)
<S> <C>
(identified cost $5,291,457,689) $5,804,059,440
Accrued interest receivable 107,192,658
Receivable for investment securities sold 23,235,757
----------
Total assets 5,934,487,855
-------------
Liabilities
Disbursements in excess of cash on demand deposit 1,504,985
Payable for investment securities purchased 39,663,884
Accrued investment management services fee 71,411
Other accrued expenses 20,373
------
Total liabilities 41,260,653
----------
Net assets $5,893,227,202
==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of operations
Tax-Free High Yield Portfolio
Six months ended May 31, 1999 (Unaudited)
Investment income
Income:
<S> <C>
Interest $187,649,289
------------
Expenses (Note 2):
Investment management services fee 12,943,100
Compensation of board members 12,687
Custodian fees 131,338
Audit fees 17,625
Other 46,425
------
Total expenses 13,151,175
Earnings credits on cash balances (Note 2) (15,790)
-------
Total net expenses 13,135,385
----------
Investment income (loss) -- net 174,513,904
-----------
Realized and unrealized gain (loss) -- net Net realized gain (loss) on:
Security transactions (Note 3) (7,271,453)
Financial futures contracts (69,937)
-------
Net realized gain (loss) on investments (7,341,390)
Net change in unrealized appreciation (depreciation) on investments (106,393,203)
------------
Net gain (loss) on investments (113,734,593)
------------
Net increase (decrease) in net assets resulting from operations $60,779,311
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statements of changes in net assets
Tax-Free High Yield Portfolio
May 31, 1999 Nov. 30, 1998
Six months ended Year ended
(Unaudited)
Operations
<S> <C> <C>
Investment income (loss)-- net $ 174,513,904 $ 348,535,304
Net realized gain (loss) on investments (7,341,390) (5,085,468)
Net change in unrealized appreciation (depreciation) on investments (106,393,203) 61,787,273
------------ ----------
Net increase (decrease) in net assets resulting from operations 60,779,311 405,237,109
Net contributions (withdrawals) from partners (173,247,067) (387,941,646)
------------ ------------
Total increase (decrease) in net assets (112,467,756) 17,295,463
Net assets at beginning of period 6,005,694,958 5,988,399,495
------------- -------------
Net assets at end of period $5,893,227,202 $6,005,694,958
============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
Tax-Free High Yield Portfolio
(Unaudited as to May 31, 1999)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Tax-Free High Yield Portfolio (the Portfolio) is a series of Tax-Free Income
Trust (the Trust) and is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company. Tax-Free High
Yield Portfolio invests primarily in medium- and lower-quality bonds and other
debt obligations.
The Portfolios' significant accounting policies are summarized below:
Use of estimates
Preparing financial statements that conform to generally accepted accounting
principles requires management to make estimates (e.g., on assets and
liabilities) that could differ from actual results.
Valuation of securities
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Securities for which market quotations are not readily available are valued at
fair value according to methods selected in good faith by the board. Short-term
securities maturing in more than 60 days from the valuation date are valued at
the market price or approximate market value based on current interest rates;
those maturing in 60 days or less are valued at amortized cost.
Option transactions
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Portfolio may buy and sell put and call
options and write covered call options on portfolio securities as well as write
cash-secured put options. The risk in writing a call option is that the
Portfolio gives up the opportunity for profit if the market price of the
security increases. The risk in writing a put option is that the Portfolio may
incur a loss if the market price of the security decreases and the option is
exercised. The risk in buying an option is that the Portfolio pays a premium
whether or not the option is exercised. The Portfolio also has the additional
risk of being unable to enter into a closing transaction if a liquid secondary
market does not exist. The Portfolio may write over-the-counter options where
completing the obligation depends upon the credit standing of the other party.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Portfolio
will realize a gain or loss when the option transaction expires or closes. When
options on debt securities or futures are exercised, the Portfolio will realize
a gain or loss. When other options are exercised, the proceeds on sales for a
written call option, the purchase cost for a written put option or the cost of a
security for a purchased put or call option is adjusted by the amount of premium
received or paid.
Futures transactions
To gain exposure to or protect itself from market changes, the Portfolio may buy
and sell financial futures contracts. Risks of entering into futures contracts
and related options include the possibility of an illiquid market and that a
change in the value of the contract or option may not correlate with changes in
the value of the underlying securities.
Upon entering into a futures contract, the Portfolio is required to deposit
either cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Portfolio each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as unrealized
gains and losses. The Portfolio recognizes a realized gain or loss when the
contract is closed or expires.
Securities purchased on a when-issued basis
Delivery and payment for securities that have been purchased by the Portfolio on
a forward-commitment or when-issued basis can take place one month or more after
the transaction date. During this period, such securities are subject to market
fluctuations and they may affect the Portfolio's net assets the same as owned
securities. The Portfolio designates cash or liquid high-grade short-term debt
securities at least equal to the amount of its commitment. As of May 31, 1999
the Portfolio has entered into outstanding when-issued or forward-commitments of
$7,669,520.
Federal taxes
For federal income tax purposes the Portfolio qualifies as a partnership and
each investor in the Portfolio is treated as the owner of its proportionate
share of the net assets, income, expenses and realized and unrealized gains and
losses of the Portfolio. As a "pass-through" entity, the Portfolio therefore
does not pay any income dividends or capital gain distributions.
Other
Security transactions are accounted for on the date securities are purchased or
sold. Interest income, including level-yield amortization of premium and
discount, is accrued daily.
2. FEES AND EXPENSES
The Trust, on behalf of the Portfolio, has an Investment Management Services
Agreement with AEFC to manage its portfolio. Under this agreement, AEFC
determines which securities will be purchased, held or sold. The management fee
is a percentage of the Portfolio's average daily net assets in reducing
percentages from 0.49% to 0.36% annually.
Under the agreement, the Trust also pays taxes, brokerage commissions and
nonadvisory expenses, which include custodian fees, audit and certain legal
fees, fidelity bond premiums, registration fees for units, office expenses,
consultants' fees, compensation of trustees, corporate filing fees and any other
expenses properly payable by the Trust or Portfolio and approved by the board.
During the six months ended May 31, 1999, the Portfolio's custodian fees were
reduced by $15,790 as a result of earnings credits from overnight cash balances.
The Portfolio also pays custodian fees to American Express Trust Company, an
affiliate of AEFC.
According to a Placement Agency Agreement, American Express Financial Advisors
Inc. acts as placement agent of the Trust's units.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $440,829,364 and $345,125,588, respectively, for the six
months ended May 31, 1999. For the same period, the portfolio turnover rate was
6%. Realized gains and losses are determined on an identified cost basis.
4. INTEREST RATE FUTURES CONTRACTS
As of May 31, 1999, investments in securities included securities valued at
$83,650 that were pledged as collateral to cover initial margin deposits on 250
open purchase contracts. The market value of the open purchase contracts as of
May 31, 1999 was $30,117,188 with a net unrealized loss of $138,469. See
"Summary of significant accounting policies."
<PAGE>
<TABLE>
<CAPTION>
Investments in Securities
Tax-Free High Yield Portfolio
May 31, 1999 (Unaudited)
(Percentages represent value of investments compared to net assets)
Municipal bonds (98.4%)
Name of issuer and title of issue(b,f) Coupon Principal Value(a)
rate amount
Alabama (0.2%)
Baldwin County Eastern Shore Health Care Authority
Hospital Revenue Bonds Thomas Hospital Series 1991
<S> <C> <C> <C>
04-01-16 8.50% $4,765,000 $5,238,784
Camden Industrial Development Board Solid Waste Disposal
Revenue Bonds MacMillan Bloedel Series 1991A A.M.T.
04-01-19 7.75 8,500,000 9,005,070
Total 14,243,854
Alaska (0.2%)
Industrial Development & Exploration Authority
Electric Power Revenue Bonds
Upper Lynn Canal Regional Power
Series 1997 A.M.T.
01-01-18 5.80 830,000 810,503
01-01-32 5.88 1,800,000 1,746,576
North Slope Borough General Obligation Bonds
Zero Coupon Series 1994B (CGIC Insured)
06-30-04 7.05 7,000,000(d) 5,631,710
06-30-05 7.15 7,000,000(d) 5,360,810
Total 13,549,599
Arizona (1.3%)
Chandler Industrial Development Authority
Beverly Enterprises Series 1994
09-01-08 7.63 2,660,000 2,748,658
Flagstaff Industrial Development Authority
Lifecare Revenue Bonds Northern Arizona
Senior Living Community Series 1998
09-01-28 6.20 5,020,000 4,842,392
09-01-38 6.30 6,165,000 5,930,915
Maricopa County Hospital System Revenue Bonds
Samaritan Health Services Series 1981
01-01-08 12.00 255,000 388,125
Maricopa County Industrial Development Authority
Multi-family Housing Revenue Bonds Series B
07-01-26 7.38 2,295,000 2,768,803
Maricopa County Industrial Development Authority
Senior Living Facilities Revenue Bonds Series 1997A
04-01-27 7.88 15,000,000 16,152,450
Maricopa County Pollution Control Refunding
Revenue Bonds Palo Verde Public Service
08-15-23 6.38 3,500,000 3,627,330
Navajo Industrial Development Authority Revenue Bonds
Stone Container Corporation Series 1997 A.M.T.
06-01-27 7.20 3,000,000 3,274,050
Phoenix Civic Improvement Waste Water System
Lease Refunding Revenue Bonds
07-01-18 5.00 5,000,000 4,921,250
Phoenix Industrial Development Authority
Refunding Revenue Bonds Christian Care Apartments
01-01-26 6.50 9,525,000 10,073,069
PimaCounty Industrial Development Authority
Multi-family Housing Revenue Bonds
Las Villas De Kino Apartments Series 1997 A.M.T.
08-01-29 6.90 7,000,000 7,178,990
PimaCounty Industrial Development Authority
Multi-family Housing Revenue Bonds
Las Villas De Kino Apartments Series 1998 A.M.T.
08-01-30 6.25 3,920,000 3,845,755
Pima County Industrial Development Authority
Revenue Bonds LaPosada Park Centre Series 1996A
05-15-27 7.00 5,750,000 6,048,655
Scottsdale Industrial Development Authority
Beverly Enterprises Series 1994
09-01-08 7.63 2,940,000 3,038,049
Total 74,838,491
Arkansas (0.2%)
PopeCounty Solid Waste Disposal Revenue Bonds
Arkansas Power & Light Series 1991 A.M.T.
01-01-21 8.00 3,250,000 3,456,375
Washington County District 5 General Obligation
Refunding Improvement Bonds
02-01-09 7.00 7,135,000 7,021,197
Total 10,477,572
California (8.9%)
ABAG Financial Authority for Nonprofit Corporations
Certificate of Participation International School
Series 1996
05-01-26 7.38 8,000,000 8,479,520
Community Development Authority Health Facilities
Unihealth America Certificate of Participation
Series 1993 Inverse Floater (AMBAC Insured)
10-01-11 7.77 22,400,000(c) 25,424,000
Contra Costa County Residential Rent Facility
Multi-family Housing Revenue Bonds Cypress Meadows
Series 1998E A.M.T.
09-01-28 7.00 5,000,000 4,833,600
East Bay Municipal Utility District Water Revenue Bonds
Series 1993 Inverse Floater (MBIA Insured)
06-01-08 6.57 15,500,000(c) 16,914,375
Foothill/Eastern Transportation Corridor Agency
Toll Road Revenue Bonds Series 1995A
01-01-35 5.00 41,070,000 38,298,595
Fresno Health Facility Refunding Revenue Bonds
Holy Cross Health System (MBIA Insured)
12-01-13 5.63 3,000,000 3,182,880
Irwindale Redevelopment Agency Subordinate Lien
Tax Allocation Bonds
12-01-26 7.05 5,750,000 6,309,360
Lake Elsinore Public Financing Authority
Local Agency Revenue Bonds Series 1997F
09-01-20 7.10 12,000,000 12,839,640
Los Angeles County Certificate of Participation
05-01-15 6.71 20,000,000 21,396,600
Los Angeles International Airport Regional Airports
Improvement Corporation Refunding
Revenue Bonds Delta Airlines
11-01-25 6.35 13,000,000 13,956,280
Los Angeles International Airport Regional Airports
Improvement Corporation Refunding Revenue Bonds
United Airlines Series 1984
11-15-21 8.80 11,650,000 12,568,020
Los Angeles Water & Power Electric Plant
Refunding Revenue Bonds Series 1992
02-01-20 6.38 10,000,000 10,723,100
Millbrae Residential Facility Revenue Bonds
Magnolia of Millbrae Series 1997A A.M.T.
09-01-27 7.38 2,500,000 2,664,150
Northern California Power Agency Geothermal 3
Revenue Bonds
07-01-09 5.00 49,635,000 51,149,857
Novato Community Facility District 1 Vintage Oaks
Public Improvement Special Tax Refunding Bonds
08-01-21 7.25 5,000,000 5,402,100
Oceanside Certificate of Participation Refunding Bonds
Oceanside Civic Center (MBIA Insured)
08-01-19 5.25 7,000,000 7,041,090
Orange County Special Tax Community Facilities Bonds
Aliso Veijo District 88-1 Series 1992A
08-15-18 7.35 6,000,000 6,756,240
Pleasanton Joint Powers Financing Authority Reassessment
Revenue Bonds Series 1993A
09-02-12 6.15 4,375,000 4,657,319
Sacramento Cogeneration Authority Revenue Bonds
Procter & Gamble Series 1995
07-01-14 6.50 3,800,000 4,328,694
07-01-21 6.50 8,000,000 9,113,040
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series 1993D
Inverse Floater (FSA Insured)
11-15-05 7.12 15,800,000(c) 17,893,500
11-15-06 7.32 16,400,000(c) 18,573,000
Sacramento Municipal Utility District Electric
Refunding Revenue Bonds Series 1993D
Inverse Floater (MBIA Insured)
11-15-15 7.77 15,000,000(c) 16,181,250
Sacramento Power Authority Cogeneration
Revenue Bonds Campbell Soup Series 1995
07-01-22 6.00 25,000,000 26,211,500
San Joaquin Hills Orange County Transportation
Corridor Agency Senior Lien Toll Road Revenue Bonds
01-01-32 6.75 14,785,000 16,478,178
San Joaquin Hills Transportation Corridor Agency
Capital Appreciation Toll Road Refunding Revenue
Bonds Zero Coupon Series 1997A (MBIA Insured)
01-15-24 5.62 9,000,000(d) 2,431,890
01-15-25 5.03 69,375,000(d) 17,739,881
01-15-26 5.51 30,000,000(d) 7,239,900
01-15-27 5.51 6,670,000(d) 1,523,561
01-15-28 5.05 13,880,000(d) 3,000,440
01-15-32 5.41 27,000,000(d) 4,685,310
01-15-36 5.42 88,415,000(d) 12,378,100
San Joaquin Hills Transportation Corridor Agency
Senior Lien Toll Road Revenue Bonds
Zero Coupon Escrowed to Maturity
01-01-17 5.35 34,860,000(d) 14,226,715
San Jose Redevelopment Agency Merged Area
Tax Allocation Bonds Series 1993 Inverse Floater
(MBIA Insured)
08-01-14 6.81 33,600,000(c) 35,657,999
Santa Nella County Water District Improvement
Limited Obligation Refunding Improvement Bonds
Series 1998
09-02-28 6.25 2,830,000 2,770,174
Sierra Unified School District Fresno County
Certificate of Participation Capital Funding
Refunding Bonds Series 1993
03-01-18 6.13 6,470,000 6,754,357
South Tahoe Joint Powers Financing Authority
Refunding Revenue Bonds South Tahoe Area 1
Series 1995B
10-01-28 6.00 9,900,000 10,246,797
Southern California Public Power Authority
Power Revenue Bonds Palo Verde
Series 1993 Inverse Floater (FGIC Insured)
07-01-17 6.62 20,000,000(c) 21,825,000
Ukiah Unified School District
Mendocino County Certificate of Participation
Series 1993
09-01-10 6.00 5,000,000 5,334,650
University of California Refunding Revenue Bonds
Multiple Purpose Project (AMBAC Insured)
09-01-16 5.25 6,000,000 6,063,240
West Sacramento Financing Authority
Special Tax Revenue Bonds Series 1999F
09-01-29 6.10 9,500,000 9,255,945
Total 522,509,847
Colorado (7.1%)
Arapahoe County Industrial Development Revenue Bonds
Dillion Real Estate-Kroger
04-01-09 8.00 4,000,000 4,426,560
Arapahoe County Public Highway Authority Capital
Improvement Trust Fund E-470 Highway
Revenue Bonds
08-31-26 7.00 22,000,000 25,878,379
Arapahoe County Public Highway Authority Capital
Improvement Trust Fund E-470 Highway
Revenue Bonds (MBIA Insured)
09-01-23 4.75 4,000,000 3,716,760
Aurora Centretech Metropolitan District
Arapahoe County Series 1987B
12-01-23 6.00 5,699,785 6,311,828
Bowles Metropolitan District General Obligation Bonds
Series 1995
12-01-15 7.75 15,500,000 18,353,240
Briargate Public Building Authority
Landowner Assessment Lien Bonds Series 1985A
12-15-00 10.25 3,880,190(h) 3,492,171
Castle Rock Ranch Public Facility Improvement
Revenue Bonds Series 1996
12-01-17 6.25 10,000,000 10,612,000
Colorado Springs Hospital Revenue Bonds
Memorial Hospital Series 1990
12-15-10 7.88 5,000,000 5,320,000
Colorado Springs Utilities System
Pre-refunded Revenue Bonds Series 1991C
11-15-15 6.50 1,505,000 1,631,586
Colorado Springs Utilities System
Refunding Revenue Bonds Series 1991C
11-15-15 6.50 24,895,000 26,802,454
11-15-21 6.75 30,000,000 32,573,179
Dawson Ridge Metropolitan District
Refunding Revenue Bonds
Zero Coupon Series B Escrowed to Maturity
10-01-22 5.21 40,000,000(d) 10,225,200
Denver City & County Airport Systems Revenue Bonds
Series 1991A A.M.T.
11-15-23 8.75 10,000,000 11,182,199
Denver City & County Airport Systems Revenue Bonds
Series 1991D A.M.T.
11-15-21 7.75 8,650,000 9,446,685
Denver City & County Airport Systems Revenue Bonds
Series 1992A
11-15-25 7.25 20,975,000 23,597,713
Denver City & County Airport Systems Revenue Bonds
Series 1992B A.M.T.
11-15-23 7.25 20,500,000 22,592,529
Denver City & County Airport Systems Revenue Bonds
Series 1994A
11-15-12 7.50 5,000,000 5,665,350
Denver City & County Airport Systems Revenue Bonds
Series 1994A A.M.T.
11-15-23 7.50 19,340,000 22,039,528
Denver City & County GVR Metropolitan District
General Obligation Refunding Bonds Series 1991
12-01-06 8.00 1,385,000 1,656,045
Denver City & County GVR Metropolitan District
General Obligation Refunding Bonds Series 1995B
12-01-06 11.00 730,000 715,013
Denver Special Facility Airport Revenue Bonds
United Air Lines Series A A.M.T.
10-01-32 6.88 25,400,000 26,994,357
Denver Urban Renewal Authority Tax Increment
Revenue Bonds Downtown Denver Redevelopment
Adams Mark Hotel Series 1989 A.M.T.
09-01-15 8.00 16,285,000 18,698,926
09-01-16 8.00 1,785,000 2,049,591
09-01-17 8.00 1,930,000 2,216,084
Denver Urban Renewal Authority Tax Increment
Revenue Bonds South Broadway Montgomery Ward
Urban Renewal Series 1992
05-01-16 8.50 13,415,000 14,786,147
Denver West Metropolitan District
General Obligation Bonds Series 1996
06-01-16 6.50 2,560,000 2,792,269
Denver West Metropolitan District
General Obligation Refunding Improvement Bonds
Series 1995
12-01-14 7.00 4,230,000 4,691,451
Edgewater Redevelopment Authority
Tax Increment Refunding Revenue Bonds
Edgewater Redevelopment Series 1999
12-01-08 5.50 3,935,000 3,841,190
Hotchkiss Industrial Development Revenue Bonds
Dillion Real Estate-Kroger
09-01-09 8.00 1,500,000 1,662,300
Housing Finance Authority Single Family Program
Senior Bonds Series 1991B (FGIC Insured)
08-01-11 7.25 1,750,000(i) 1,829,853
02-01-18 7.30 1,590,000 1,661,200
Lowry Economic Redevelopment Authority
Revenue Bonds Series 1996
12-01-10 7.50 19,000,000 21,795,090
Lowry Economic Redevelopment Authority
Series A
12-01-10 7.00 3,600,000 4,019,148
Saddle Rock Metropolitan District Limited Tax
General Obligation Bonds Series 1997
12-01-16 7.63 5,450,000 5,747,625
State Health Facility Authority Hospital Improvement
Refunding Revenue Bonds
Parkview Episcopal Medical Center Series 1995
09-01-25 6.13 7,000,000 7,281,820
State Health Facility Authority Revenue Bonds
Liberty Heights Zero Coupon Escrowed to Maturity
07-15-22 7.50 81,465,000(d) 22,402,060
Superior Metropolitan District 2 Limited Tax
General Obligation Refunding Bonds
MDC Holdings Series 1994B
12-01-13 8.25 2,580,000 3,117,104
12-01-13 8.50 12,000,000 13,257,480
Thornton Industrial Development Revenue Bonds
Dillion Real Estate-Kroger
09-01-09 8.00 4,500,000 4,979,880
Trailmark Metropolitan District
General Obligation Bonds Series 1999B
12-01-18 5.80 5,000,000 4,953,900
Westminster Industrial Development Revenue Bonds
Dillion Real Estate-Kroger
04-01-09 8.00 3,500,000 3,878,700
Total 418,894,594
Connecticut (0.2%)
State Development Authority Pollution Control
Refunding Revenue Bonds Conneticut Light & Power
Series 1993B A.M.T.
09-01-28 5.95 10,000,000 9,893,600
District of Columbia (0.7%)
General Obligation Refunding Bonds Series 1994A
(MBIA Insured)
06-01-10 6.00 27,875,000 30,586,123
06-01-11 6.10 7,580,000 8,351,113
Housing Finance Agency Multi-family Mortgage
Revenue Bonds Temple Courts Section 8
Series 1985 (FHA Insured)
02-01-22 12.00 1,305,000 1,492,855
Total 40,430,091
Florida (4.8%)
Arbor Greene Community Development District
Special Assessment Revenue Bonds Series 1996
05-01-18 7.60 4,880,000 5,247,122
Arbor Greene Community Development District
Special Assessment Revenue Bonds Series 1998
05-01-19 6.30 1,390,000 1,398,382
Brooks of Bonita Springs Community
Development District Special Assessment
District Capital Improvement Revenue Bonds
Series 1998A
05-01-19 6.20 11,200,000 11,186,672
Brooks of Bonita Springs Community
Development District Special Assessment
District Capital Improvement Revenue Bonds
Series 1998B
05-01-06 5.65 2,750,000 2,725,058
Championsgate Community Development District
Capital Improvement Revenue Bonds Series 1998A
05-01-20 6.25 2,840,000 2,836,535
Championsgate Community Development District
Capital Improvement Revenue Bonds Series 1998B
05-01-05 5.70 1,515,000 1,510,410
Charlotte County Development Authority 1st Mortgage
Refunding Revenue Bonds
Royal Palm Retirement Centre Series 1991
03-01-14 9.50 3,830,000 4,114,990
Crossings at Fleming Island Community Development
District Special Assessment Bonds Series 1995
05-01-16 8.25 9,810,000 10,731,551
Crossings at Fleming Island Community Development
District Utility Revenue Bonds Series 1994
10-01-19 7.38 13,250,000 13,971,860
Department of Transportation Turnpike Revenue Bonds
Series 1991A (AMBAC Insured)
07-01-20 6.25 20,000,000 21,024,800
Gateway Centre Development District Pinellas County
Special Assessment Revenue Bonds Series 1988
01-01-09 9.13 1,015,000 1,049,094
Grand Haven Community Development District
Special Assessment Bonds Flagler County
Series 1997A
05-01-02 6.30 4,700,000 4,789,535
Grand Haven Community Development District
Special Assessment Revenue Bonds
Series 1998A
05-01-19 6.90 1,000,000 1,032,620
Heritage Harbor Community Development District
Special Assessment Revenue Bonds
Series 1997B
05-01-03 6.00 1,240,000 1,251,123
05-01-05 5.75 1,650,000 1,652,376
Heritage Palms Community Development District
Capital Improvement Revenue Bonds
Series 1998
11-01-03 5.40 4,340,000 4,296,166
Hillsborough County Utility Refunding Revenue Bonds
Series 1991A
08-01-14 7.00 24,000,000 25,650,401
Hillsborough County Utility Refunding Revenue Bonds
Series 1991A (MBIA Insured)
08-01-16 6.50 24,760,000 26,506,324
Lakewood Ranch Community Development District 1
Manatec County Benefit Special Assessment Bonds
Series 1998
05-01-17 7.30 3,680,000 3,746,166
Lakewood Ranch Community Development District 1
Special Assessment Bonds Series 1994
05-01-14 8.25 2,310,000 2,498,588
Miami Health Facility Authorization Revenue Bonds
Inverse Floater (AMBAC Insured)
08-15-15 7.04 3,500,000(c) 3,591,875
North Springs Improvement Special Assessment
District Revenue Bonds Heron Bay Series 1997
05-01-19 7.00 3,000,000 3,181,410
North Springs Improvement Special Assessment
District Revenue Bonds Parkland Isles Series 1997B
05-01-05 6.25 2,800,000 2,845,024
Orange County Housing Finance Authority
Multi-family Housing Revenue Bonds
Dunwoodie Apartments Series 1999E A.M.T.
07-01-35 6.50 6,020,000 5,961,606
Palm Beach County Health Facilities Authority Hospital
Revenue Bonds Good Samaritan Health Series 1993
10-01-22 6.30 3,750,000 4,145,625
Palm Beach County Housing Finance Authority
Multi-family Revenue Bonds Lake Delray
Series A A.M.T.
01-01-31 6.40 14,000,000 13,980,120
Polk County Industrial Development Authority 1st Mortgage
Refunding Revenue Bonds Spring Haven II
12-01-14 8.75 5,945,000 6,410,850
Port Everglades Port Authority Revenue Bonds Junior Lien
09-01-16 5.00 18,635,000 18,400,385
River Ridge Community Development District
Special Assessment Revenue Bonds Series 1998
05-01-08 5.75 3,600,000 3,584,916
Riverwood Community Development District
Charlotte County Special Assessment Revenue Bonds
Series 1992A-B
05-01-12 8.50 465,000 489,333
05-01-14 8.50 4,925,000 5,182,725
State Housing Finance Revenue Bonds
Westbrook Apartments Series U-1 A.M.T.
01-01-39 6.45 4,880,000 4,770,493
Stoneybrook Community Development District
Capital Improvement Revenue Bonds
Lee County Series 1998A
05-01-19 6.10 1,660,000 1,639,184
Stoneybrook Community Development District
Capital Improvement Revenue Bonds
Lee County Series 1998B
05-01-08 5.70 1,280,000 1,270,234
Sumter County Industrial Development Authority
Industrial Development Revenue Bonds
Little Sumter Utility Company Series 1997 A.M.T.
10-01-27 7.25 4,200,000 4,229,610
Sumter County Industrial Development Authority
Industrial Development Water & Sewer Revenue Bonds
Little Sumter Utility Company Series 1998 A.M.T.
10-01-27 6.75 2,950,000 2,904,983
Sumter County Village Community Development
District 1 Capital Improvement Revenue Bonds
Series 1992
05-01-12 8.40 605,000 643,496
Sunrise Utility System Refunding & Improvement
Revenue Bonds
10-01-18 10.75 5,000,000 5,464,350
Tampa Health Systems Revenue Bonds
Catholic Health East Obligation Group
Series 1998A-2 (AMBAC Insured)
11-15-28 4.88 26,330,000 24,374,998
Village Center Community Development District
Sub Recreational Revenue Bonds
Series 1998C
01-01-19 7.38 2,640,000 2,647,418
Village Center Community District Recreational
Revenue Bonds Series 1996B
01-01-17 8.25 2,695,000 2,913,214
Village Community Development District 2
Special Assessment District Revenue Bonds
Series 1996
05-01-17 7.63 5,285,000 5,622,870
Volusia County Industrial Development Authority
1st Mortgage Refunding Revenue Bonds Series 1996
11-01-26 7.63 10,925,000 13,216,191
Total 284,690,683
Georgia (2.0%)
Atlanta Special Purpose Facility Revenue Bonds
Delta Air Lines Series 1989B A.M.T.
12-01-18 7.90 13,500,000 14,000,040
12-01-19 6.25 8,685,000 8,756,825
Colquitt County Development Authority Revenue Bonds
Zero Coupon Escrowed to Maturity
12-01-21 6.87 46,350,000(d) 12,714,732
Effingham County Pollution Control Revenue Bonds
Fort Howard Series 1988
10-01-05 7.90 19,850,000 20,640,229
Fulco Hospital Authority Revenue Anticipation Certificate
Georgia Baptist Health Care Systems Series 1992A
09-01-22 6.38 20,300,000 22,153,592
George L. Smith II World Congress Center Authority
Miscellaneous Revenue Bonds Dome Stadium
Series 2000 (MBIA Insured) A.M.T.
07-01-20 5.50 8,000,000(g) 7,918,000
Municipal Electric Authority Power Revenue Bonds
Series L
01-01-20 5.00 1,150,000 1,102,850
Rockdale County Development Authority Solid Waste
Disposal Revenue Bonds Visy Paper Series 1993 A.M.T.
01-01-26 7.50 10,000,000 10,554,100
Savannah Economic Development Authority
1st Mortgage Revenue Bonds Zero Coupon Series 1991A
12-01-21 5.40 13,755,000(d) 3,773,272
Savannah Economic Development Authority
Revenue Bonds Zero Coupon Escrowed to Maturity
12-01-21 6.87 64,220,000(d) 17,616,830
Total 119,230,470
Hawaii (0.4%)
City & County of Honolulu Refunding & Improvement
General Obligation Bonds Series 1993B Inverse Floater
09-07-06 7.02 10,000,000(c) 11,087,500
09-11-08 7.32 10,000,000(c) 11,237,500
Total 22,325,000
Idaho (0.0%)
State Building Authority Lease
Revenue Bonds Series 1998A (MBIA Insured)
09-01-25 4.75 750,000 700,883
Illinois (8.0%)
Bradley Kankakee County Tax Increment
Refunding Revenue Bonds Series 1993
12-01-12 8.40 5,590,000 6,242,185
Broadview Cook County Senior Lien Tax Increment
Revenue Bonds Series 1993
07-01-13 8.25 11,360,000 13,518,741
Chicago Board of Education General Obligation Bonds
Capital Appreciation Series B-1 (FGIC Insured)
12-01-29 5.22 25,000,000(d) 4,775,750
Chicago Board of Education School Reform
Unlimited Tax General Obligation Refunding Bonds
Zero Coupon Series 1999A (FGIC Insured)
12-01-28 5.30 31,500,000(d) 6,358,590
12-01-29 5.30 30,500,000(d) 5,826,415
12-01-30 5.30 36,135,000(d) 6,534,292
Chicago General Obligation Bonds
Series 1991 (AMBAC Insured)
01-01-16 6.00 6,170,000 6,604,183
Chicago General Obligation Bonds
Series 1994A (AMBAC Insured)
01-01-22 5.88 17,850,000 19,051,662
Chicago General Obligation Refunding Bonds
Series 1995A (AMBAC Insured)
01-01-18 5.50 20,000,000 20,903,400
Chicago O'Hare International Airport
General Airport Refunding Revenue Bonds Series 1993A
01-01-16 5.00 14,450,000 14,005,807
Chicago O'Hare International Airport
General Airport Revenue Bonds Series 1990A A.M.T.
01-01-16 7.50 21,000,000 21,805,560
01-01-18 6.00 29,000,000 29,631,619
Chicago O'Hare International Airport
Special Facility Revenue Bonds United Airlines
Series 1999A
09-01-16 5.35 5,000,000 4,911,200
Chicago O'Hare International Airport
Special Revenue Bonds (FGIC Insured) A.M.T.
11-01-25 7.88 17,750,000 18,925,760
Chicago O'Hare International Airport
Special Revenue Bonds A.M.T.
01-01-17 7.50 32,250,000 33,438,734
Chicago O'Hare International Airport
Special Revenue Facility Bonds Delta Airlines
Series 1992
05-01-18 6.45 10,000,000 10,586,500
Chicago Ridge Special Service Area 1 Unlimited
Ad Valorem Tax Bonds Series 1990
12-01-08 9.00 2,700,000 2,962,980
Chicago Wastewater Transmission Revenue Bonds
Series 1994 (MBIA Insured)
01-01-24 6.38 22,500,000 25,247,924
Cook County Bedford Park Senior Lien Tax Increment
Revenue Bonds
01-01-06 7.00 990,000 1,055,746
01-01-12 7.38 1,700,000 1,830,679
Cook County Bedford Park Senior Lien Tax Increment
Revenue Bonds Mark IV Series 1992
03-01-12 9.75 1,675,000 1,941,962
Development Finance Authority Lifecare Revenue Bonds
Presbyterian Homes Series 1996B
09-01-31 6.40 6,700,000 7,323,770
Development Finance Authority Pollution Control
Refunding Revenue Bonds Central Illinois
Public Service 2nd Series 1993B
06-01-28 5.90 2,500,000 2,586,300
Development Finance Authority Pollution Control
Refunding Revenue Bonds Commonwealth Edison
Series 1994
01-15-09 5.70 2,000,000 2,148,560
01-15-14 5.85 4,500,000 4,912,875
Development Finance Authority Pollution Control
Refunding Revenue Bonds Illinois Power
Series 1991A
07-01-21 7.38 19,250,000 22,121,715
Development Finance Authority Retirement Housing
Revenue Bonds Zero Coupon Escrowed to Maturity
04-15-20 7.75 68,000,000(d) 19,868,920
DuPage County Tax Increment Revenue Bonds
Series 1997
01-01-17 7.88 4,690,000 5,212,841
Educational Facilities Authority Refunding Revenue Bonds
Lewis University Series 1996
10-01-26 6.13 8,780,000 8,989,140
Educational Facilities Authority Refunding Revenue Bonds
Loyola University of Chicago Series 1993
Inverse Floater (FGIC Insured)
07-01-12 7.57 11,000,000(c) 12,420,210
Granite City Madison County Hospital
Refunding Revenue Bonds St. Elizabeth Medical Center
Series 1989A
06-01-08 8.13 2,920,000 2,980,794
Health Facilities Authority Refunding Revenue Bonds
Edwards Hospital Series 1993A
02-15-19 6.00 6,350,000 6,500,559
Health Facilities Authority Refunding Revenue Bonds
Masonic Medical Center Series 1993
10-01-19 5.50 2,000,000 1,949,680
Health Facilities Authority Refunding Revenue Bonds
Morris Hospital
12-01-23 6.13 3,005,000 3,129,888
Health Facilities Authority Refunding Revenue Bonds
University of Chicago Series 1993 Inverse Floater
(MBIA Insured)
08-15-14 8.02 10,000,000(c) 10,837,500
Health Facilities Authority Revenue Bonds
Sarah Bush Lincoln Health Center Series 1992
05-15-12 7.25 2,000,000 2,220,260
05-15-22 7.25 2,000,000 2,220,260
Health Facilities Authority Revenue Bonds
Sarah Bush Lincoln Health Center Series 1996B
02-15-22 5.75 2,915,000 2,923,308
Health Facility Authority Revenue Bonds
South Suburban Hospital Series 1992
02-15-09 7.00 4,000,000 4,482,833
02-15-18 7.00 5,000,000 5,751,737
Hodgkins General Obligation Tax Increment Bonds
Series 1991
12-01-09 9.50 11,800,000 13,546,908
Hodgkins General Tax Increment Bonds
Series 1995A
12-01-13 7.63 9,000,000 9,892,710
Huntley Special Tax Bonds
Series 1998
02-01-25 6.75 2,450,000 2,496,330
Huntley Special Tax Bonds
Series 1999
03-01-28 6.30 2,305,000 2,274,574
Lakemoor Special Tax Revenue Bonds
Series 1997
03-01-27 7.80 9,000,000 9,630,900
Lansing Tax Increment Refunding Revenue Bonds
Landings Redevelopment Area Limited Sales
Tax Pledge Series 1992
12-01-08 7.00 10,000,000 10,902,100
Marion General Obligation Hospital Alternate
Revenue Source Bonds Series 1991
12-01-16 7.50 3,800,000 4,195,732
Metropolitan Pier & Exposition Authority
Dedicated State Tax Refunding Revenue Bonds
McCormick Place Zero Coupon (FGIC Insured)
06-15-19 6.37 6,000,000(d) 2,057,760
Metropolitan Pier & Exposition Authority
Dedicated State Tax Refunding Revenue Bonds
McCormick Place Zero Coupon (MBIA Insured)
06-15-17 6.61 11,210,000(d) 4,315,514
06-15-28 6.61 41,900,000(d) 8,723,580
Metropolitan Pier & Exposition Authority
Sales Tax & Miscellaneous Tax Revenue
Capital Appreciation Refunding Bonds
Zero Coupon Series 1996A (MBIA Insured)
12-15-22 6.05 16,225,000(d) 4,582,427
Regional Transportation Authority General
Obligation Bonds Counties of Cook, DuPage, Kane, Lake,
McHenry & Will Series 1992A (AMBAC Insured)
06-01-22 6.13 7,200,000 7,557,336
Schaumburg Special Assessment District
Revenue Bonds Woodfield Road
Series 1998
12-01-28 6.75 3,403,000 3,318,095
State Development Finance Authority Regency Park
Retirement Housing Revenue Bonds Zero Coupon
Series 1991B Escrowed to Maturity
07-15-25 5.49 10,000,000(d) 2,144,500
Tinley Park Cook & Will Counties Limited Sales Tax
Revenue Bonds Series 1988
11-01-99 10.25 895,000(h) 322,200
Tinley Park Cook & Will Counties Unlimited Ad Valorem
Tax Bonds of Special Service
12-01-99 10.65 80,000 75,200
12-01-00 10.65 90,000 83,700
12-01-01 10.65 100,000 92,000
12-01-02 10.65 110,000 101,200
12-01-03 10.65 120,000 110,400
12-01-04 10.65 135,000 124,200
12-01-05 10.65 150,000 138,000
12-01-06 10.65 165,000 151,800
12-01-07 10.65 185,000 170,200
Total 471,748,205
Indiana (2.2%)
Brazil 1st Mortgage Revenue Bonds Hoosier Care II
Series 1990
06-01-20 10.38 4,025,000 4,236,755
Carmel Retirement Rental Housing Refunding
Revenue Bonds Beverly Enterprises Series 1992
12-01-08 8.75 6,565,000 7,274,873
Development Finance Authority Environmental
Improvement Refunding Revenue Bonds USX Corporation
Series 1996
07-15-30 6.25 2,000,000 2,113,900
East Chicago Elementary School Building Lake County
1st Mortgage Refunding Bonds Series 1996
01-05-16 6.25 8,000,000 8,908,960
Hanover 1st Mortgage Revenue Bonds Hoosier Care II
Series 1990
06-01-20 10.38 6,590,000 6,936,700
Health Facility Authority Hospital Revenue Bonds
Community Hospital of Anderson Series 1993
01-01-23 6.00 10,000,000 10,170,000
Health Facility Authority Hospital Revenue Bonds
Union Hospital Series 1993 (MBIA Insured)
09-01-18 5.13 10,000,000 9,719,000
Health Facility Finance Authority Hospital Revenue Bonds
Hancock Memorial Series 1996
08-15-17 6.13 2,295,000 2,410,920
La Porte County Hospital Authority Hospital Refunding
Revenue Bonds La Porte Hospital Series 1993
03-01-12 6.25 5,070,000 5,338,051
03-01-23 6.00 2,990,000 3,070,042
Lawrenceburg Pollution Control Refunding Revenue Bonds
Methodist Hospital Series 1989
09-01-08 6.50 15,555,000 15,989,762
Marion County Hospital Authority Refunding Revenue Bonds
Methodist Hospital Series 1989 (MBIA Insured)
09-01-13 6.50 4,115,000 4,189,193
Rockport Pollution Control Refunding Revenue Bonds
Indiana Michigan Electric Series B
03-01-16 7.60 5,500,000 5,830,880
St. Joseph County Hospital Authority
Health Systems Revenue Bonds
Memorial Health System
Series 1998A (MBIA Insured)
08-15-28 4.63 30,000,000 26,203,201
St. Joseph County Hospital Facility Revenue Bonds
Memorial Hospital of South Bend
06-01-10 9.40 1,770,000 2,238,891
Vincennes Economic Development
Revenue Bonds Southwest Indiana
Regional Youth Village Facility Series 1993
01-01-24 8.50 16,575,000 17,583,258
Total 132,214,386
Iowa (0.6%)
Keokuk Hospital Facilities Refunding Revenue Bonds
Keokuk Area Hospital Series 1991
12-01-21 7.63 5,350,000 5,922,985
Muscatine Electric Refunding Revenue Bonds Series 1986
01-01-05 6.00 10,845,000 10,864,738
01-01-06 6.00 11,330,000 11,350,621
01-01-07 5.00 2,250,000 2,250,540
01-01-08 5.00 5,100,000 5,100,357
Total 35,489,241
Kansas (0.1%)
Wyandotte County Kansas City Multi-family
Housing Revenue Bonds Park Victoria Apartments
Series 1998 A.M.T.
08-01-28 6.25 5,035,000 4,977,853
Kentucky (0.9%)
Development Finance Authority Hospital Facility
Revenue Bonds St. Luke Hospital Series 1989B
10-01-19 6.00 22,695,000 23,237,637
Economic Development Finance Authority Hospital
Refunding Revenue & Improvement Bonds
Appalachian Regional Hospital Series 1997
10-01-22 5.88 5,000,000 5,025,400
Muhlenberg County Hospital
Refunding Revenue Bonds
Muhlenberg Community Hospital Series 1996
07-01-10 6.75 9,045,000 9,388,620
Turnpike Authority Economic Road Development
Refunding Revenue Bonds Series 1993 Inverse Floater
(AMBAC Insured)
06-06-12 7.84 15,000,000(c) 16,593,750
Total 54,245,407
Louisiana (2.5%)
Calcasieu Parish Industrial Development Pollution Control
Refunding Revenue Bonds Gulf State Utilities
Series 1992
10-01-12 6.75 10,500,000 11,080,020
Energy & Power Authority Refunding Revenue Bonds
Rodemacher Unit 2 Series 1991 (FGIC Insured)
01-01-13 6.00 28,000,000 28,880,320
Hodge Village Combined Utility System Revenue Bonds
Stone Container Series 1990 A.M.T.
03-01-10 9.00 23,000,000 23,970,370
New Orleans Audubon Park Commission Aquarium
Revenue Bonds Series 1992A
04-01-12 8.00 7,100,000 7,971,809
Public Facilities Authority Revenue Bonds
Glen Retirement Systems Series 1995
12-01-15 6.50 1,000,000 1,058,170
12-01-25 6.70 1,500,000 1,604,190
Southern Louisiana Port Commission Terminal
Refunding Revenue Bonds GATX Terminal Series 1993
03-01-23 7.00 13,180,000 14,212,785
St. Charles Parish Pollution Control Revenue Bonds
Louisiana Power & Light 2nd Series 1984
12-01-14 8.00 29,155,000 30,485,051
St. Charles Parish Pollution Control Revenue Bonds
Louisiana Power & Light Series 1991 A.M.T.
06-01-21 7.50 20,700,000 22,039,704
West Feliciana Parish Demand Pollution Control
Revenue Bonds Gulf State Utilities Series 1985B
05-01-15 9.00 6,000,000 6,415,440
Total 147,717,859
Maine (0.1%)
Finance Authority Multi-family Housing Revenue
Obligation Securities Huntington Common
Series 1997A
09-01-27 7.50 5,000,000 5,110,300
Maryland (0.8%)
Frederick County Economic Refunding Revenue Bonds
Alumax Series 1992
04-01-17 7.25 9,880,000 10,642,440
Frederick County Obligation Special Tax Revenue Bonds
Urbana Community Development Authority Series 1998
07-01-25 6.63 6,000,000 6,065,460
Harford County Industrial Development Revenue Bonds
Dorsey
04-16-05 8.00 449,000 451,236
Prince George's County Hospital Revenue Bonds
Dimensions Health Series 1992
07-01-17 7.25 11,400,000 12,703,932
07-01-22 7.00 7,000,000 7,754,530
State Transportation Authority Facility
Capital Appreciation Revenue Bonds
Zero Coupon Series 1992 (FGIC Insured)
07-01-10 6.33 3,000,000(d) 1,763,130
07-01-11 6.33 6,700,000(d) 3,718,098
State Transportation Authority Facility
Revenue Bonds Zero Coupon
Series 1992 (FGIC Insured)
07-01-12 6.35 5,000,000(d) 2,619,300
Total 45,718,126
Massachusetts (3.3%)
Bay Transportation Authority Refunding Revenue Bonds
Series 1994A (MBIA Insured)
03-01-12 6.00 8,000,000 8,593,437
Health & Educational Facilities Authority
Revenue Bonds Berkshire Health Systems
Series C
10-01-11 5.90 1,800,000 1,837,350
10-01-20 6.00 4,000,000 4,098,680
Health & Educational Facilities Authority
Revenue Bonds Beverly Hospital Inverse Floater
(MBIA Insured)
06-18-20 7.92 8,000,000(c) 8,650,000
Health & Educational Facilities Authority
Revenue Bonds Charlton Memorial Hospital
Series 1991B
07-01-13 7.25 6,455,000 7,010,905
Health & Educational Facilities Authority
Revenue Bonds Holyoke Hospital
Series B
07-01-15 6.50 500,000 527,505
Industrial Finance Agency Pollution Control
Refunding Revenue Bonds Eastern Edison
Series 1993
08-01-08 5.88 4,250,000 4,348,855
Industrial Finance Agency Resource Recovery
Revenue Bonds SEMASS Series 1991A
07-01-15 9.00 18,885,000 20,791,818
Industrial Finance Agency Resource Recovery
Revenue Bonds SEMASS Series 1991B A.M.T.
07-01-15 9.25 24,800,000 27,304,055
Municipal Wholesale Electric Power
Supply System Pre-refunded Revenue Bonds
Series 1992B
07-01-17 6.75 10,130,000 11,161,335
Municipal Wholesale Electric Power
Supply System Revenue Bonds
Series 1993A Inverse Floater (AMBAC Insured)
07-01-18 7.12 6,500,000(c) 6,686,875
State Industrial Finance Agency Assisted Living
Facility Revenue Bonds Marina Bay LLC
Series 1997 A.M.T.
12-01-27 7.50 2,000,000 2,160,300
State Industrial Finance Agency Assisted Living
Facility Revenue Bonds Newton Group Properties LLC
Series 1997 A.M.T.
09-01-27 8.00 4,300,000 4,782,589
State Turnpike Authority Metro Highway System
Senior Lien Revenue Bonds Toll Road
Series 1997A (MBIA Insured)
01-01-37 5.00 24,500,000 22,966,055
State Water Authority
Water & Sewer General Revenue Bonds
Series 1998A (FSA Insured)
08-01-27 4.75 12,000,000 10,973,640
Water Resource Authority General
Refunding Revenue Bonds Series 1992B
11-01-15 5.50 22,175,000 22,642,449
Water Resource Authority General
Revenue Bonds Series 1992A
07-15-19 6.50 3,500,000 4,055,135
Water Resource Authority General
Revenue Bonds Series 1993B-95B
(MBIA Insured)
12-01-25 5.00 9,000,000 8,580,870
Water Resource Authority General
Revenue Bonds Series B (MBIA Insured)
03-01-22 5.00 10,000,000 9,592,500
Water Resource Authority General
Revenue Bonds Series D (MBIA Insured)
08-01-24 5.00 5,000,000 4,785,750
Total 191,550,103
Michigan (4.4%)
Concord Academy Certificate of Participation Series 1998
10-01-19 7.00 1,000,000 976,590
Countryside Charter School Full Term
Certificates of Participation
Berrien County Series 1999
04-01-29 7.00 2,635,000 2,605,383
Crawford County Economic Development Corporation
Environmental Improvement Revenue Bonds
Weyerhaeuser Series 1991A
07-15-07 7.13 10,800,000 12,313,404
Detroit Unlimited Tax General Obligation Bonds
Series 1993
04-01-14 6.35 5,510,000 5,938,127
Detroit Unlimited Tax General Obligation Bonds
Series 1995A
04-01-15 6.80 1,375,000 1,568,408
Lincoln Consolidated School District Unlimited Tax
General Obligation Refunding Bonds (FGIC Insured)
05-01-18 5.85 6,455,000 7,023,967
Livingston Academy
Certificate of Participation
05-01-27 7.00 3,080,000 3,075,934
Midland County Economic Development Corporation
Pollution Control Limited Obligation Refunding Revenue
Bonds Midland Cogeneration Series 1990 A.M.T.
07-23-09 9.50 35,200,000 37,222,943
Midland County Economic Development Corporation
Pollution Control Limited Obligation Refunding Revenue
Bonds Midland Cogeneration Series 1990C
07-23-09 8.50 18,900,000 19,806,633
Monroe County Pollution Control
Revenue Bonds Detroit Edison A.M.T.
12-01-19 7.75 40,250,000 42,033,477
State Hospital Finance Authority
Hospital Pre-refunded Revenue Bonds
McLaren Obligated Group Series 1991A
09-15-21 7.50 7,500,000 8,248,875
State Hospital Finance Authority
Hospital Refunding Revenue Bonds
Sinai Hospital of Greater Detroit Series 1995
01-01-26 6.70 3,000,000 3,104,580
State Hospital Finance Authority
Refunding Revenue Bonds
Detroit Medical Center
Series 1993A
08-15-18 6.50 10,000,000 10,167,000
State Hospital Finance Authority
Refunding Revenue Bonds
Sinai Hospital of Greater Detroit Series 1995
01-01-16 6.63 2,750,000 2,832,280
State Hospital Finance Authority
Revenue Bonds Central Michigan Community Hospital
10-01-27 6.25 2,095,000 2,179,680
State Job Development Authority Pollution Control
Revenue Bonds Chrysler
11-01-99 5.70 4,350,000 4,384,931
State Trunk Line Bonds Series 1998A (MBIA Insured)
11-01-20 4.75 10,500,000 9,803,430
Strategic Fund Environmental Improvement Limited
Obligation Refunding Revenue Bonds
Crown Paper Company Series 1997B
08-01-12 6.25 1,100,000 985,171
Strategic Fund Limited Obligation Refunding
Revenue Bonds Detroit Edison
Series 1995AA (MBIA Insured)
09-01-25 6.40 12,000,000 13,377,360
Strategic Fund Limited Obligation Refunding
Revenue Bonds Great Lakes Pulp & Fibre
Series 1994 A.M.T.
12-01-27 5.00 22,451,752 15,716,226
Strategic Fund Limited Tax Obligation
Refunding Revenue Bonds Ford Motor
Series 1991A
02-01-06 7.10 16,400,000 18,863,280
Summit Academy Certificates of Participation
Junior High School Facility Series 1999
09-01-29 7.00 4,000,000 3,940,080
Summit Academy Certificates of Participation
Series 1998
09-01-18 7.00 2,500,000 2,468,425
Troy City Downtown Development Authority
County of Oakland Development Bonds
Series 1995A (Asset Guaranty)
11-01-18 6.38 1,000,000 1,102,240
Van Buren Township Tax Increment Revenue Bonds
Series 1994
10-01-16 8.40 3,970,000 4,471,570
Wayne Charter County Airport Revenue Bonds
Detroit Metro Wayne County Series 1998A
(MBIA Insured) A.M.T.
12-01-28 5.00 13,900,000 13,025,690
Wayne County Special Airport Facilities
Refunding Revenue Bonds Northwest Airlines Series 1995
12-01-15 6.75 11,280,000 12,178,565
Total 259,414,249
Minnesota (4.2%)
Becker Solid Waste Disposal Facility
Revenue Bonds Liberty Paper Series 1994B A.M.T.
08-01-15 9.00 16,800,000 17,201,352
Bloomington Health Care Facility Revenue Bonds
Friendship Village of Bloomington Series 1992
04-01-02 8.50 2,385,000 2,515,460
Brainerd Economic Development Authority
Health Care Facility Revenue Bonds
Benedictine Health System St. Joseph Medical Center
Series 1990
02-15-20 8.38 4,670,000 4,926,943
Duluth Economic Development Authority
Health Care Facility Pre-refunded Revenue Bonds
Benedictine Health System St. Mary's Medical Center
Series 1990
02-15-20 8.38 8,300,000 8,756,666
Fergus Falls Health Care Facilities Revenue Bonds
LRHC Long-Term Care Facility Series 1995
12-01-25 6.50 1,530,000 1,642,088
International Falls Solid Waste Disposal
Revenue Bonds Boise Cascade
Series 1990 A.M.T.
01-01-15 7.75 10,000,000 10,299,800
Little Canada Multi-family Housing Revenue Bonds
Housing Alternative Development Company
Series 1997A
12-01-27 6.25 1,755,000 1,768,794
Mahtomedi Multi-family Housing
Revenue Bonds Briarcliff A.M.T.
06-01-36 7.35 1,995,000 2,076,157
Maplewood Elder Care Facility Revenue Bonds
Care Institute Series 1994
01-01-24 7.75 8,000,000 8,281,840
Maplewood Multi-family Housing
Refunding Revenue Bonds Carefree Cottages
of Maplewood III Series 1995 A.M.T.
11-01-32 7.20 4,930,000 5,065,230
Mille Lacs Capital Improvement Authority Infrastructure
Revenue Bonds Series 1992A
11-01-12 9.25 4,310,000 5,111,057
Minneapolis Housing & Healthcare Facility Revenue Bonds
Augustana Chapel View Homes Incorporated Series 1997
06-01-27 6.75 2,640,000 2,741,218
Richfield Multi-family Housing
Refunding Revenue Bonds
Village Shores Apartments Series 1996
08-01-31 7.63 4,920,000 5,102,778
Robbinsdale Multi-family Housing Revenue Bonds
Copperfield Hill Series 1996A
12-01-31 7.35 3,500,000 3,579,135
Rochester Multi-family Housing Revenue Bonds
Wedum Shorewood Campus
06-01-36 6.60 10,000,000 9,999,900
Roseville Housing Facilities Nursing Home
Refunding Revenue Bonds College Properties
Incorporated Series 1998
10-01-28 5.88 7,500,000 7,343,250
Southern Minnesota Municipal Power Agency
Power Supply System Refunding Revenue Bonds
Series 1992
01-01-18 5.75 32,210,000 33,517,403
Southern Minnesota Municipal Power Agency
Power Supply System Refunding Revenue Bonds
Zero Coupon Series 1994A (MBIA Insured)
01-01-21 6.87 13,500,000(d) 4,354,155
Southern Minnesota Municipal Power Agency
Power Supply System Revenue Bonds
Zero Coupon Series 1994A (MBIA Insured)
01-01-22 6.73 17,500,000(d) 5,349,050
01-01-23 6.74 27,500,000(d) 7,964,825
01-01-24 6.75 19,960,000(d) 5,477,423
01-01-25 6.75 27,500,000(d) 7,149,175
01-01-26 6.75 27,500,000(d) 6,754,550
01-01-27 6.75 12,450,000(d) 2,899,232
St. Louis Park Health Care Facilities
Pre-refunded Revenue Bonds
Park Nicollet Medical Center Series 1990A
01-01-20 9.25 6,000,000 6,325,260
St. Louis Park Health Care Facilities
Revenue Bonds Healthsystem Minnesota
Obligated Group Series 1993 Inverse Floater
(AMBAC Insured)
07-01-05 5.43 10,200,000(c) 10,569,750
St. Louis Park Health Care Facilities
Revenue Bonds Healthsystem Minnesota
Obligated Group Series 1993B Inverse Floater
(AMBAC Insured)
07-01-13 6.28 18,000,000(c) 18,269,999
St. Louis Park Multi-family Housing
Refunding Revenue Bonds
Park Boulevard Towers Series 1996A
04-01-31 7.00 11,415,000 11,823,999
St. Paul Housing & Redevelopment Authority
Health Care Facility Revenue Bonds
Lyngblomsten Care Center Series 1993A
11-01-06 7.13 1,610,000 1,675,125
11-01-17 7.13 2,635,000 2,784,536
St. Paul Housing & Redevelopment Authority
Health Care Facility Revenue Bonds
Lyngblomsten Multi-family Rental Housing
Series 1993B
11-01-24 7.00 2,725,000 2,772,006
St. Paul Port Authority Redevelopment Multi-family
Refunding Revenue Bonds Burlington Apartments
Series A (GNMA Insured)
05-01-31 5.75 14,355,000 14,757,658
St. Paul Port Authority Redevelopment Multi-family
Subordinate Refunding Revenue Bonds
Burlington Apartments Series A
02-01-31 8.63 3,770,000 3,836,541
Vadnais Heights Multi-family Housing
Refunding Revenue Bonds
Cottages of Vadnais Heights
Series 1995 A.M.T.
12-01-31 7.00 1,980,000 2,033,500
Washington County Housing & Redevelopment
Authority Refunding Revenue Bonds
Woodbury Multi-family Housing Series 1996
12-01-23 6.95 4,755,000 4,887,997
Total 249,613,852
Mississippi (1.0%)
Claiborne County Pollution Control Refunding Revenue Bonds
System Energy Resources Series 1995
05-01-25 7.30 4,000,000 4,191,880
Claiborne County Pollution Control Revenue Bonds
Middle South Energy
12-01-13 9.50 1,195,000 1,233,814
Gulfport Urban Renewal Multi-family Housing
Revenue Bonds Woodchase Apartments
Series 1998 A.M.T.
12-01-28 6.75 3,100,000 2,962,980
Harrison County Waste Water Management District
Refunding Bonds Series 1986
02-01-15 5.00 4,250,000 4,280,855
Jackson Industrial Development Revenue Bonds Dorsey
04-16-05 8.00 392,000 395,967
Long Beach Urban Renewal Multi-family Housing
Revenue Bonds Long Beach Square Apartments
Series 1998 A.M.T.
08-01-28 6.75 3,870,000 3,759,202
Lowndes County Solid Waste Disposal Pollution Control
Refunding Revenue Bonds Weyerhaeuser Series 1989
Inverse Floater
04-01-22 8.80 4,000,000(c) 4,695,040
Lowndes County Solid Waste Disposal Pollution Control
Revenue Bonds Weyerhaeuser Series 1989 A.M.T.
12-01-05 7.88 12,250,000 12,803,088
Medical Center Educational Building
Hospital Refunding Revenue Bonds
University of Mississippi Medical Center
Series 1998B (AMBAC Insured)
12-01-23 5.50 14,000,000 14,538,439
State Business Finance Pollution Control
Refunding Revenue Bonds System Energy Resources
Series 1999
05-01-22 5.90 9,150,000 9,115,322
Total 57,976,587
Missouri (0.7%)
Regional Convention & Sports Complex Authority Bonds
St. Louis Sponsor Series 1991B
08-15-21 7.00 5,810,000 6,486,458
Sikeston Electric System Refunding Revenue Bonds
Series 1992 (MBIA Insured)
06-01-02 5.80 4,165,000 4,387,578
St. Louis Industrial Development Authority
Refunding Revenue Bonds Kiel Center
Multi-purpose Arena Series 1992 A.M.T.
12-01-24 7.88 15,400,000 16,580,410
St. Louis Regional Convention & Sports Complex Authority
Refunding Revenue Bonds Series 1991C
08-15-21 7.90 2,575,000 2,961,096
St. Louis Regional Convention & Sports Complex Authority
Revenue Bonds Series 1991C
08-15-21 7.90 125,000 136,406
State Enviornment & Improvement Energy Resources
Authority Pollution Control Revenue Bonds Chrysler
10-01-99 5.70 9,250,000 9,281,820
Total 39,833,768
Nebraska (--%)
Omaha Public Power District Electric System
Revenue Bonds Series 1986A
02-01-15 6.00 1,370,000 1,511,425
Nevada (0.9%)
Clark County Collateralized Pollution Control Revenue Bonds
Nevada Power A.M.T.
10-01-09 7.80 11,850,000 12,217,943
Clark County Industrial Development Revenue Bonds
Nevada Power Series 1990 A.M.T.
06-01-20 7.80 5,000,000 5,247,600
Clark County Passenger Facility Charge Airport
Refunding Revenue Bonds
Las Vegas McCarran Intl Airport
Series 1998 (MBIA Insured)
07-01-22 4.75 19,000,000 17,616,609
Las Vegas Redevelopment Agency Tax Increment
Subordinate Lien Revenue Bonds Series 1994A
06-15-10 6.00 2,000,000 2,093,760
06-15-14 6.10 2,750,000 2,857,443
Las Vegas Special Improvement District 707
Local Improvement Bonds
Summerlin Area Series 1996
06-01-16 7.10 6,000,000 6,252,360
Washoe County Hospital Revenue Bonds
Washoe Medical Center Series 1993A
06-01-15 6.00 7,250,000 7,534,635
Total 53,820,350
New Hampshire (2.1%)
Business Financial Authority Pollution Control
& Solid Waste Disposal Refunding Revenue Bonds
Crown Paper Company Series 1996
01-01-22 7.75 4,255,000 4,197,472
Business Financial Authority Pollution Control
Refunding Revenue Bonds United Illuminating
Series 1993A
10-01-33 5.88 13,200,000 13,358,796
Higher Education & Health Facilities Authority
Lifecare Revenue Bonds Rivermead at Peterborough
Retirement Community Series 1998
07-01-18 5.63 1,365,000 1,311,847
07-01-28 5.75 2,500,000 2,422,675
Industrial Development Authority Pollution Control
Revenue Bonds State Public Service Series 1991B
05-01-21 7.50 51,485,000 54,082,419
Industrial Development Authority Pollution Control
Revenue Bonds State Public Service Series 1991C A.M.T.
05-01-21 7.65 25,000,000 26,305,250
Industrial Development Authority Pollution Control
Revenue Bonds United Illuminating Series 1989A A.M.T.
12-01-14 8.00 8,000,000 8,350,320
State Higher Education & Health Facility Authority Hospital
Revenue Bonds Hitchcock Clinic Series 1994
(MBIA Insured)
07-01-24 6.00 13,000,000 13,815,360
Total 123,844,139
New Jersey (0.2%)
Health Care Facility Finance Authority Revenue Bonds
St. Peter Medical Center Series 1994F (MBIA Insured)
07-01-16 5.00 10,000,000 9,752,700
New Mexico (1.9%)
Albuquerque Health Care System Revenue Bonds
Lovelace Medical Fund
03-01-11 10.25 55,000 55,877
Bernalillo County Muti-family Housing Revenue Bonds
Series 1997D
04-01-27 7.70 14,845,000 15,286,045
Farmington Pollution Control Refunding Revenue Bonds
Series 1996A-B
12-01-16 6.30 10,000,000 10,514,400
Farmington Pollution Control Refunding Revenue Bonds
Series 1997A
10-01-20 6.95 4,000,000 4,332,080
Farmington Pollution Control Refunding Revenue Bonds
State Public Service San Juan Series 1994A
08-15-23 6.40 30,650,000 31,821,136
Farmington Power Refunding Revenue Bonds
Generating Division
01-01-13 9.88 5,000,000 6,464,150
Las Vegas Hospital Facility Refunding Revenue Bonds
Northeastern Regional Hospital Series 1987
08-01-13 9.63 5,370,000 5,455,222
Lordsberg Pollution Control Refunding Revenue Bonds
Phelps Dodge
04-01-13 6.50 20,000,000 21,725,000
Sandoval County Multi-family Housing
Refunding Revenue Bonds Meadowlark Apartments
Series 1998A A.M.T.
07-01-38 6.38 11,300,000 11,334,804
Sandoval County Multi-family Housing
Refunding Revenue Bonds Meadowlark Apartments
Series 1998B A.M.T.
07-01-01 6.38 1,000,000 1,000,890
Santa Fe County Lifecare Revenue Bonds
El Castillo Retirement Series 1998A
05-15-15 5.50 1,000,000 961,670
05-15-25 5.63 2,500,000 2,391,575
Total 111,342,849
New York (8.4%)
Battery Park City Authority Refunding Revenue Bonds
Series 1993A
11-01-10 5.50 9,940,000 10,292,572
Dormitory Authority New York City University System
Consolidated 2nd Generation Resource Revenue Bonds
Series 1990C
07-01-16 6.00 39,465,000 40,128,460
07-01-17 5.00 20,820,000 19,980,954
Dormitory Authority New York City University System
Consolidated 2nd Generation Resource Revenue Bonds
Series 1990D
07-01-09 7.00 5,000,000 5,709,500
Dormitory Authority New York City University System
Consolidated 2nd Generation Resource Revenue Bonds
Series 1994A
07-01-18 5.75 5,500,000 5,856,235
Dormitory Authority New York Court Facility Lease
Revenue Bonds Series 1993A
05-15-16 5.38 11,000,000 10,969,420
Dormitory Authority New York State
Memorial Sloan-Kettering Cancer Center
Series 1998 (MBIA Insured)
07-01-20 5.75 7,500,000 8,125,050
07-01-23 5.50 7,700,000 8,091,083
Dormitory Authority New York State
University Education Facility Revenue Bonds
Series 1993A
05-15-13 5.50 24,530,000 25,903,435
Huntington Housing Authority
Senior Housing Facilities Revenue Bonds
Gurwin Jewish Senior Residences
Series 1999A
05-01-39 6.00 2,000,000 1,975,100
Long Island Power Authority
Revenue Bonds Series A
12-01-26 5.25 8,445,000 8,288,261
12-01-29 5.50 7,500,000 7,584,525
New York & New Jersey Port Authority Special Obligation
Revenue Bonds KIAC Partners Series 4 A.M.T.
10-01-19 6.75 3,500,000 3,849,790
New York City General Obligation Bonds Series 1992B
02-01-00 7.40 30,000,000 30,803,999
New York City General Obligation Bonds Series 1996F-G
02-01-19 5.75 5,500,000 5,743,760
02-01-20 5.75 2,325,000 2,424,719
New York City General Obligation Bonds Series 1998H
08-01-22 5.00 30,000,000 28,689,300
New York City Municipal Water Finance Authority
Water & Sewer System Refunding Revenue Bonds
Series 1998D (MBIA Insured)
06-15-25 4.75 8,000,000 7,371,520
New York City Municipal Water Finance Authority
Water & Sewer System Revenue Bonds
Series 1994B Inverse Floater (MBIA Insured)
06-15-09 7.11 15,500,000(c) 16,585,000
New York City Municipal Water Finance Authority
Water & Sewer System Revenue Bonds Series A
06-15-21 6.25 55,500,000 57,984,179
New York City Municipal Water Finance Authority
Water & Sewer System Revenue Bonds Series B
06-15-17 5.00 6,255,000 6,131,026
New York City Pre-refunded Unlimited General
Obligation Bonds Series 1994B-1
08-15-16 7.00 16,500,000 18,874,680
New York City Unlimited Tax General
Obligation Bonds Series 1996G
02-01-17 5.75 20,000,000 21,029,400
New York City Unlimited Tax General
Obligation Bonds Series 1998F
08-01-23 5.00 7,235,000 6,902,624
New York City Unlimited Tax General
Obligation Bonds Series 1998G
08-01-22 5.00 10,000,000 9,563,100
New York City Unlimited Tax General
Obligation Bonds Series 1998J
08-01-23 5.00 10,760,000 10,265,686
North Hempstead Nassau County New York
Various Purpose Bonds
Series 1998A (FGIC Insured)
01-15-23 4.75 3,100,000 2,879,466
PortAuthority Special Project Bonds La Guardia
Airport Passenger Terminal
Continental & Eastern Airlines A.M.T.
12-01-06 9.00 2,645,000 2,859,060
PortAuthority Special Project Bonds La Guardia
Airport Passenger Terminal
Continental & Eastern Airlines Series 2 A.M.T.
12-01-10 9.00 8,800,000 9,512,184
12-01-15 9.13 17,500,000 18,947,775
State Dormitory Authority State University Education Facility
Pre-refunded Revenue Bonds Series 1990A
05-15-12 7.70 10,000,000 10,610,200
State Housing Finance Agency Service Contract Obligation
Revenue Bonds Series 1995A
03-15-25 6.50 12,475,000 14,144,612
State Housing Finance Agency State University Construction
Refunding Bonds Series 1986A
05-01-13 6.50 3,500,000 4,076,310
State Medical Facilities Finance Agency
Mental Health Services Improvement Refunding
Revenue Bonds Series 1993D
08-15-23 5.25 15,000,000 14,716,650
State Medical Facilities Finance Agency
Mental Health Services Improvement Refunding
Revenue Bonds Series 1993F
02-15-19 5.25 5,790,000 5,712,588
State Urban Development Correctional Capital Facilities
Refunding Revenue Bonds Series 1993A
01-01-21 5.25 12,110,000 11,894,563
State Urban Development Correctional Facility
Refunding Revenue Bonds Series A
01-01-16 5.50 2,750,000 2,799,995
State Urban Development Correctional Facility
Revenue Bonds Series 6
01-01-25 5.38 9,000,000 8,993,340
State Urban Development Correctional Facility
Services Contract Lease Revenue Bonds
Series 1998A (FSA Insured)
01-01-28 5.00 10,000,000 9,560,300
Total 495,830,421
North Carolina (3.6%)
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1986A
01-01-17 5.00 6,500,000 6,487,416
01-01-18 4.00 8,675,000 7,622,809
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1988A
01-01-26 6.00 1,940,000 2,171,384
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1989A
01-01-10 7.50 29,160,000 34,943,718
01-01-11 5.50 37,800,000 37,801,890
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1991A
01-01-19 5.75 55,000,000 54,868,551
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1993B
01-01-12 6.25 24,655,000 25,859,150
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series 1994B
01-01-07 7.25 5,000,000 5,617,500
Eastern Municipal Power Agency Power System
Refunding Revenue Bonds Series B
01-01-09 6.13 10,000,000 10,559,600
Eastern Municipal Power Agency Power System
Revenue Bonds Series 1993D
01-01-13 5.88 2,300,000 2,352,003
Municipal Power Agency 1 Catawba Electric
Revenue Bonds Series 1993
Inverse Floater (MBIA Insured)
01-01-12 7.22 7,400,000(c) 7,936,500
01-01-20 7.42 15,000,000(c) 15,543,750
Total 211,764,271
North Dakota (0.3%)
Fargo Hospital Refunding Revenue & Improvement Bonds
Dakota Hospital Series 1992
11-15-12 6.88 3,000,000 3,322,470
11-15-22 7.00 4,250,000 4,723,833
Ward County Health Care Facilities
Refunding Revenue Bonds Series 1996B
07-01-21 6.25 4,000,000 4,209,160
Ward County Health Care Facilities
Refunding Revenue Bonds Trinity Group Series 1996A
07-01-26 6.25 6,110,000 6,429,491
Total 18,684,954
Ohio (3.3%)
Air Quality Development Authority
Pollution Control Refunding Revenue Bonds
Cleveland Electric Company Series 1997B
08-01-20 6.00 10,000,000 10,208,900
Air Quality Development Authority
Pollution Control Refunding Revenue Bonds
Ohio Edison Series A
05-15-29 5.95 13,300,000 13,559,350
Air Quality Development Authority
Pollution Control Revenue Bonds
Ohio Edison Series 1989A
07-01-23 7.63 6,750,000 6,909,368
Bellefontaine Hospital Facility
Refunding Revenue Bonds
Mary Rutan Health Association of Logan County
Series 1993
12-01-13 6.00 5,330,000 5,474,123
Butler County Hospital Facility Improvement
Refunding Revenue Bonds
Fort Hamilton-Hughes Memorial Center
Series 1991
01-01-10 7.50 9,800,000 10,433,374
Carroll Water & Sewer District
Unlimited Tax General Obligation Bonds
12-01-10 6.25 1,895,000 1,986,472
Carroll Water & Sewer District
Water System Improvement Unlimited Tax
General Obligation Bonds
12-01-10 6.25 7,855,000 8,286,082
Cleveland Parking Facilities Improvement
Revenue Bonds Series 1992
09-15-22 8.10 15,000,000 17,127,900
Coshocton County Solid Waste Disposal
Refunding Revenue Bonds
Stone Container Series 1992
08-01-13 7.88 17,500,000 18,960,026
Cuyahoga County Health Care Facilities
Lifecare Refunding Revenue Bonds
Judson Retirement Community Series 1996A
11-15-13 7.25 2,080,000 2,237,602
Cuyahoga County Health Care Facilities
Refunding Revenue Bonds Judson Retirement
Community Series A
11-15-18 7.25 4,130,000 4,442,930
Erie County Hospital Improvement Refunding
Revenue Bonds Firelands Community Hospital
Series 1992
01-01-15 6.75 6,540,000 7,005,713
Franklin County Health Care Facilities
Refunding Revenue Bonds
Lutheran Senior City Incorporated
Series 1999
12-15-28 6.13 4,705,000 4,534,067
Franklin County Multi-family Housing
Refunding Revenue Bonds
Jefferson Chase Apartments Series 1998B A.M.T.
11-01-35 6.40 1,465,000 1,442,556
Franklin County Multi-family Housing
Refunding Revenue Bonds
West Bay Apartments A.M.T.
12-01-25 6.38 8,365,000 8,422,551
Lorain County Independent Living & Hospital Facilities
Refunding Revenue Bonds Elyria United Methodist
Series 1996C
06-01-22 6.88 3,100,000 3,360,152
Marion County Health Care Facilities
Improvement Refunding Revenue Bonds
United Church Homes Series 1993
11-15-10 6.38 2,000,000 2,088,540
Marion County Health Care Facilities
Refunding & Improvement Revenue Bonds
United Church Homes Series 1993
11-15-15 6.30 1,800,000 1,872,432
Montgomery County Health Facilities Refunding
Revenue Bonds Friendship Village Dayton Series 1990A
02-01-16 9.25 9,025,000 9,547,457
State Water & Air Quality Development Authority
Pollution Control Refunding Revenue Bonds
Cleveland Electric Illuminating Series 1995
08-01-25 7.70 13,000,000 14,690,390
State Water Development Authority Pollution Control
Refunding Revenue Bonds Toledo Edison
Series 1994A A.M.T.
10-01-23 8.00 10,000,000 11,304,600
Water Development Authority Collateralized Pollution Control
Revenue Bonds Cleveland Electric Series 1989 A.M.T.
10-01-23 8.00 10,000,000 10,310,200
Water Development Authority Collateralized Pollution Control
Revenue Bonds Toledo Edison Series 1989 A.M.T.
10-01-23 8.00 8,500,000 8,763,670
Water Development Authority Pollution Control
Revenue Bonds Ohio Edison A.M.T.
10-01-23 8.10 10,000,000 10,365,800
Total 193,334,255
Oklahoma (1.0%)
Grand River Dam Authority Refunding Revenue Bonds
Series 1987
06-01-12 5.00 10,105,000 10,106,415
Hinton Economic Development Authority
Certificate of Participation
Dominion Leasing Series 1990A
07-01-15 9.75 19,090,000 21,343,957
Hinton Economic Development Authority
Certificate of Participation
Series 1994
07-01-15 8.75 11,415,000 12,590,174
Jackson County Hospital Authority
Refunding Revenue Bonds
Jackson County Memorial Hospital Series 1994
08-01-15 7.30 6,580,000 7,038,231
Midwest City Memorial Hospital Authority Hospital
Revenue Bonds Series 1992
04-01-22 7.38 7,815,000 8,651,439
Stillwater Medical Center Authority
Hospital Revenue Bonds Series 1997B
05-15-19 6.50 1,750,000 1,858,675
Total 61,588,891
Oregon (0.6%)
State Health Housing Educational & Cultural Facilities
Authority Revenue Bonds Oregon Baptist Retirement
Homes-Weidler Retirement Center Series 1995
11-15-26 8.00 7,645,000 8,429,301
Western Generation Agency Revenue Bonds
Wauna Cogeneration Series 1994A
01-01-21 7.13 13,600,000 14,539,760
Western Generation Agency Revenue Bonds
Wauna Cogeneration Series 1994B A.M.T.
01-01-16 7.40 9,000,000 9,718,290
Total 32,687,351
Pennsylvania (3.8%)
Allegheny County Industrial Development Authority
Environment Improvement Revenue Bonds
USX Corporation Series 1994A
12-01-20 6.70 6,000,000 6,476,880
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Cleveland Electric Illuminating Series 1995
05-01-25 7.63 7,500,000 8,455,725
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Cleveland Electric Illuminating Series 1995A
07-15-25 7.75 21,150,000 24,047,762
Beaver County Industrial Development Authority
Collateralized Pollution Control Refunding Revenue Bonds
Toledo Edison Series 1995A
05-01-20 7.75 14,000,000 15,984,640
Beaver County Industrial Development Authority
Pollution Control Revenue Bonds
Ohio Edison
09-01-24 7.75 34,650,000 35,710,636
Beaver County Industrial Development Authority
Pollution Control Revenue Bonds
Toledo Edison-Beaver Valley Series 1995
05-01-20 7.63 11,700,000 13,190,931
Butler County Industrial Development Authority Health Care
Refunding Revenue Bonds Pittsburgh Lifetime Care
Community Sherwood Oaks Series 1993
06-01-11 5.75 2,000,000 2,036,520
06-01-16 5.75 3,000,000 3,039,450
Convention Center Authority Refunding Revenue Bonds
Philadelphia Series 1994A
09-01-19 6.75 5,300,000 5,844,310
Delaware County Authority 1st Mortgage Revenue Bonds
Riddle Village Series 1996
06-01-26 7.00 10,000,000 10,360,200
Delaware County Authority 1st Mortgage Revenue Bonds
Whitehorse Village Continuing Care Series 1989
07-01-09 9.70 1,000,000 1,035,420
07-01-19 9.70 10,000,000 10,354,200
Delaware County Industrial Development Authority
Pollution Control Refunding Revenue Bonds
Philadelphia Electric Series A
04-01-21 7.38 900,000 954,909
Harrisburg Dauphin County General Obligation Bonds
Zero Coupon Series 1997F (AMBAC Insured)
09-15-20 5.50 3,000,000(d) 968,460
09-15-21 5.52 1,000,000(d) 305,200
09-15-22 5.52 1,000,000(d) 288,990
Montgomery County Higher Education & Health Authority
Retirement Community Revenue Bonds G.D.L. Farms
Series A
01-01-20 9.50 3,000,000 3,164,100
Philadelphia Gas Works Revenue Bonds Series 13
06-15-21 7.70 4,150,000 4,549,894
Philadelphia Municipal Authority Lease
Refunding Revenue Bonds Series 1993D
07-15-13 6.25 2,500,000 2,641,500
07-15-17 6.30 1,550,000 1,638,195
Philadelphia Water & Sewer Revenue Bonds Series 16
08-01-10 7.50 13,200,000 14,475,912
08-01-18 7.00 14,000,000 14,955,920
Philadelphia Water & Wastewater Revenue Bonds
Series 1993 (CGIC Insured)
06-15-15 5.50 11,000,000 11,231,880
State Department of General Services
Certificate of Participation
Series 1994A (AMBAC Insured)
07-01-15 5.00 25,000,000 24,272,500
Wilkins Industrial Development Authority Revenue Bonds
Retirement Community Longwood at Oakmont
Series 1991A
01-01-21 10.00 8,495,000 9,522,046
Total 225,506,180
Puerto Rico (0.8%)
Electric Power Agency Revenue Bonds
Series N
07-01-10 6.00 40,000,000 40,091,200
Electric Power Agency Revenue Bonds
Series O
07-01-10 6.00 5,305,000 5,317,095
Total 45,408,295
South Carolina (1.1%)
Cherokee County Spring City Industrial Development
Revenue Bonds Knitting Cluett Peabody
09-01-09 7.40 5,200,000 6,166,680
Jobs Economic Development Authority
1st Mortgage Health Facilities Nursing Home Refunding
Revenue Bonds Lutheran Homes Series 1998
05-01-26 5.70 5,235,000 5,142,864
Piedmont Municipal Power Agency Electric
Refunding Revenue Bonds Series 1986B
01-01-24 5.75 7,550,000 7,448,830
Piedmont Municipal Power Agency Electric
Refunding Revenue Bonds Series 1998A
01-01-25 4.75 5,000,000 4,571,200
Public Service Authority Electric System
Expansion Revenue Bonds Santee Cooper
Series 1991D
07-01-31 6.63 14,975,000 16,440,903
Public Service Authority Electric System
Revenue Bonds Santee Cooper
Series 1991B
07-01-31 6.00 8,000,000 8,361,840
Public Service Authority Electric System
Revenue Bonds Santee Cooper
Series 1993A Inverse Floater (MBIA Insured)
06-28-13 7.55 17,700,000(c) 19,027,500
Total 67,159,817
South Dakota (0.6%)
Heartland Consumers Power District Electric System
Refunding Revenue Bonds Series 1986
01-01-10 6.00 10,205,000 11,111,510
Sioux Falls Multi-family Housing Revenue Bonds
Series 1996A
12-01-34 7.50 12,200,000 13,019,474
State Lease Revenue Trust Certificates Series 1993
(CGIC Insured)
09-01-17 6.70 7,260,000 8,599,906
Total 32,730,890
Tennessee (0.4%)
Nashville & Davidson Counties Health & Education
Facilities 1st Mortgage Revenue Bonds
Blakeford at Green Hills CCRC
07-01-24 9.25 12,230,000 15,139,517
Nashville & Davidson Counties Health & Education
Facilities Board Revenue Bonds
Zero Coupon Escrowed to Maturity
06-01-21 5.38 29,109,000(d) 8,359,523
Total 23,499,040
Texas (7.5%)
Alliance Airport Authority Special Facility Revenue Bonds
American Airlines Series 1990 A.M.T.
12-01-29 7.50 37,400,000 39,774,525
Austin Combined Utility Systems Refunding Revenue Bonds
Series 1985
05-15-10 10.75 10,000,000 10,694,000
05-15-15 10.75 2,000,000 2,138,800
Austin Combined Utility Systems Refunding Revenue Bonds
Series 1986
11-15-13 5.00 19,985,000 19,701,413
Board of Regents of the University System General
Refunding Revenue Bonds Series 1986
08-15-07 6.50 2,565,000 2,849,869
Brazos River Authority Collateralized Pollution Control
Revenue Bonds Texas Utility Electric
Series 1990A A.M.T.
02-01-20 8.13 13,205,000 13,751,423
Brazos River Authority Collateralized Pollution Control
Revenue Bonds Texas Utility Electric
Series 1991A A.M.T.
03-01-21 7.88 24,450,000 26,346,831
Castlewood Municipal Utility District Water &
Sewer Systems Unlimited Tax & Refunding Revenue Bonds
Series 1997
04-01-14 6.75 2,820,000 2,957,644
Colony Municipal Utility District 1 Denton County
Series 1980
08-01-07 9.25 1,000,000 1,326,240
Cypress Hill Municipal Utility District 1
General Obligation Bonds
09-01-22 5.30 2,045,000 1,952,791
Dallas & Fort Worth International Airport Special Facility
Revenue Bonds American Airlines Series 1990 A.M.T.
11-01-25 7.50 26,200,000 27,801,082
Dallas & Fort Worth International Airport Special Facility
Revenue Bonds Delta Air Lines Series 1991 A.M.T.
11-01-26 7.13 13,500,000 14,209,830
Dallas Civic Center Miscellaneous Refunding Revenue
& Improvement Bonds Series 1998 (MBIA Insured)
08-15-23 4.88 29,850,000 28,050,941
Dallas Civic Center Revenue Bonds
Series A (AMBAC Insured)
08-15-27 4.75 5,575,000 5,097,892
Denison Hospital Authority Hospital Revenue Bonds
Texoma Medical Center Series 1994
08-15-24 7.10 3,950,000 4,394,665
Harris County Health Facilities Hospital Revenue Bonds
Memorial Hospital Series 1992
06-01-15 7.13 16,000,000 17,760,320
Harris County Industrial Development Marine Terminal
Refunding Revenue Bonds GATX Terminal Series 1992
02-01-22 6.95 15,000,000 15,999,000
Harris County Municipal Utilities District 196
Water & Sewer Revenue Bonds Series 1998
09-01-23 5.50 2,585,000 2,477,955
Hidalgo County Health Services Corporation
Hospital Revenue Bonds Mission Hospital
Series 1996
08-15-26 6.88 7,880,000 8,523,875
Houston Water & Sewer System Junior Lien
Capital Appreciation Refunding Revenue Bonds
Zero Coupon Series 1998A
(FSA Insured)
12-01-25 5.50 30,000,000(d) 7,268,700
12-01-28 5.50 50,000,000(d) 10,268,500
Interstate Municipal Utility District
Unlimited Tax Bonds Harris County Series 1996
09-01-21 6.75 3,020,000 3,230,041
Karnes County Public Facility Lease Revenue Bonds
03-01-15 9.20 15,270,000 19,055,280
Katy Development Authority Metro Contract
Revenue Bonds Sales Tax Series 1999A
06-01-09 5.75 14,755,000 14,688,455
Kings Manor Municipal Utility District
Waterworks & Sewer Systems Combination
Unlimited Tax & Revenue Bonds Series 1995
03-01-18 6.88 2,470,000 2,679,011
Lubbock Health Facilities Development Corporation
Fixed Rate 1st Mortgage Revenue Bonds Carillon
Series 1999A
07-01-29 6.50 20,145,000 19,778,160
Midland County Hospital District Revenue Bonds Series 1992
06-01-16 7.50 3,025,000 3,346,406
Mineral Wells Independent School Districts Palo Pinto &
Parker Counties Unlimited Tax General Obligation School
Building & Refunding Bonds Series 1998
(Permanent School Fund Guarantee)
02-15-22 4.75 5,430,000 5,037,845
02-15-28 4.75 8,345,000 7,648,276
Municipal Power Agency
Refunding Revenue Bonds (MBIA Insured)
09-01-09 5.25 8,000,000 8,414,160
Municipal Power Agency
Revenue Bonds
09-01-13 5.50 7,410,000 7,415,928
Rio Grande City Consolidated Independent School District
Public Facilities Lease Revenue Bonds Series 1995
07-15-10 6.75 4,000,000 4,338,200
Rolling Creek Utility District Unlimited Tax
General Obligation Refunding Bonds
Series 1998
03-01-15 5.75 3,660,000 3,663,038
Sabine River Authority Collateralized Pollution Control
Revenue Bonds Texas Utilities Electric Series 1990A A.M.T.
02-01-20 8.13 30,500,000 31,763,614
Uvalde Consolidated Independent School District
General Obligation Bonds
(Permanent School Fund Guarantee)
08-01-22 4.50 5,100,000 4,571,436
WestSide Calhoun County Navigation District
Solid Waste Disposal Revenue Bonds
Union Carbide Chemical & Plastics Series 1991 A.M.T.
03-15-21 8.20 17,550,000 18,897,138
Wichita County Health Facilities Development
Refunding Revenue Bonds
Rolling Meadows Series 1998A
01-01-28 6.25 23,425,000 23,180,209
Total 441,053,493
Utah (1.8%)
Carbon County Solid Waste Disposal
Refunding Revenue Bonds
Sunnyside Cogeneration Associates Series 1991 A.M.T.
07-01-18 9.25 25,350,000(h) 13,942,500
Eagle Mountain Special Assessment Revenue Bonds
Special Improvement District 98-1 Series 1999
12-15-12 6.25 12,105,000 11,737,613
Housing Finance Agency Single Family Mortgage
Senior Bonds Series 1991C (FGIC Insured)
07-01-11 7.30 435,000 455,058
07-01-16 7.35 340,000 355,494
Hurricane Health Facilities Development Revenue Bonds
Mission Health Services Series 1990
07-01-20 10.50 7,570,000 8,134,722
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series 1993B Inverse Floater
07-01-11 7.57 7,600,000(c) 8,217,500
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series 1996C (MBIA Insured)
07-01-17 5.70 46,000,000 48,162,920
Intermountain Power Agency Power Supply
Refunding Revenue Bonds Series F (AMBAC Insured)
07-01-13 5.00 5,000,000 4,989,750
Intermountain Power Agency Power Supply
Revenue Bonds Series 1987A (MBIA Insured)
07-01-12 5.00 8,000,000 7,999,600
Tooele County Pollution Control Refunding Revenue Bonds
Laidlaw Environmental Services Incorporated
Series 1997A A.M.T.
07-01-27 7.55 4,000,000 4,357,000
Total 108,352,157
Virginia (0.7%)
Fairfax County Economic Development Authority
Educational Facilities Revenue Bonds
Browne Academy Series 1998
10-01-08 6.00 1,500,000 1,493,505
10-01-23 6.45 5,200,000 5,204,420
Fairfax County Redevelopment & Housing Authority
Multi-family Housing Revenue Bonds
Burkeshire Commons Series 1996
10-01-36 7.60 13,105,000 14,226,526
Hopewell City Industrial Development Authority
Pollution Control Refunding Revenue Bonds
Stone Container Series 1992
05-01-10 8.25 3,170,000 3,462,464
Housing Development Authority Commonwealth
Mortgage Bonds Series 1992A
01-01-33 7.15 11,890,000 12,406,264
Prince William County Service Authority Water & Sewer
Systems Refunding Revenue Bonds
Series 1997 (FGIC Insured)
07-01-29 4.75 1,875,000 1,728,581
Total 38,521,760
Washington (2.7%)
King County Housing Authority Pooled Housing
Refunding Revenue Bonds Series 1995A
03-01-26 7.20 4,000,000 4,135,960
Longview Industrial Development Corporation Solid Waste
Revenue Bonds Weyerhauser Series 1991 A.M.T.
02-01-13 7.45 20,000,000 21,213,000
Public Power Supply System Nuclear Project 1
Refunding Revenue Bonds Bonneville Power Administration
Series 1993A Inverse Floater (FSA Insured)
07-01-11 7.72 25,000,000(c) 28,843,750
Public Power Supply System Nuclear Project 1
Refunding Revenue Bonds Series A
07-01-15 6.50 21,000,000 22,973,370
Public Power Supply System Nuclear Project 1
Revenue Bonds Series 1990A
07-01-17 6.00 38,875,000 39,981,382
Public Power Supply System Nuclear Project 2
Revenue Bonds Series 1994A
07-01-11 5.38 10,000,000 10,197,200
Snohomish County Public Utilitiy District 1
Generation System Revenue Bonds Series 1986A
01-01-20 5.00 17,750,000 17,745,563
State General Obligation
Refunding Revenue Bonds
Zero Coupon Series 1997A
07-01-19 5.95 16,260,000(d) 5,617,993
State Housing Finance Commission
Refunding Revenue Bonds Horizon House
Series 1995A (Asset Guaranty)
07-01-17 6.00 3,700,000 3,905,424
07-01-27 6.13 3,845,000 4,077,776
Total 158,691,418
West Virginia (1.2%)
Kanawha County Pollution Control
Revenue Bonds Union Carbide Series 1984
08-01-04 7.35 3,000,000 3,392,460
Mason County Pollution Control
Refunding Revenue Bonds Appalachian Power
Series 1992J
10-01-22 6.60 25,000,000 26,980,251
Pea Ridge Public Service District Sewer
Refunding Revenue Bonds Series 1990
05-01-20 9.25 2,505,000 2,708,581
Putnam County Pollution Control Revenue Bonds
Appalachian Power Series C
07-01-19 6.60 10,600,000 11,327,796
School Building Authority Capital Improvement
Revenue Bonds Series 1991A
07-01-21 6.00 20,785,000 21,737,992
South Charleston Pollution Control Refunding
Revenue Bonds Union Carbide Series 1985
08-01-05 7.63 3,000,000 3,447,630
Total 69,594,710
Wisconsin (0.6%)
Health & Educational Facilities Authority
Revenue Bonds St. Clare Hospital
02-15-22 7.00 12,115,000 13,254,295
Madison Industrial Development
Refunding Revenue Bonds Madison Gas & Electric
Series 1992B
10-01-27 6.70 19,300,000 20,784,941
State Health & Education Facilities Authority
Lifecare Revenue Bonds United Lutheran
Program for the Aging - Luther Manor Series 1998
03-01-28 5.70 3,250,000 3,147,073
Total 37,186,309
Wyoming (0.2%)
Natrona County Hospital Revenue Bonds
Wyoming Medical Center
09-15-10 8.13 6,500,000 7,006,545
State Farm Loan Board Capital Facilities
Revenue Bonds Series 1994
04-01-24 6.10 5,000,000 5,392,600
Total 12,399,145
Total municipal bonds
(Cost: $5,289,057,689) $5,801,659,440
Mississippi Solid Waste
Revenue Bonds 1995 V.R. A.M.T.
07-01-25 3.30% $2,400,000 $2,400,000
Total municipal note
(Cost: $2,400,000) $2,400,000
Total investments in securities
(Cost: $5,291,457,689)(j) $5,804,059,440
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) The following abbreviations may be used in portfolio descriptions to
identify the insurer of
the issue:
ACA -- ACA Financial Guaranty Corporation
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
CGIC -- Capital Guaranty Insurance Company
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
MBIA -- Municipal Bond Investors Assurance
(c) Inverse floaters represent securities that pay interest at a rate that
increases (decreases) in the same magnitude as, or in a multiple of, a decline
(increase) in market short-term rates. Interest rate disclosed is the rate in
effect on May 31, 1999. Inverse floaters in the aggregate represent 6.16% of the
Fund's net assets as of May 31, 1999.
(d) For zero coupon bonds, the interest rate disclosed represents the annualized
effective yield on the date of acquisition.
(e) The Portfolio is entitled to receive principal amount from issuer or
corporate guarantor, if indicated in parentheses, after a day or a week's
notice. The maturity date disclosed represents the final maturity. Interest rate
varies to reflect current market conditions; rate shown is the effective rate on
May 31, 1999.
(f) The following abbreviations may be used in the portfolio descriptions:
A.M.T. -- Alternative Minimum Tax -- As of May 31, 1999, the value of
securities subject to alternative minimum tax represented
16.62% of net assets.
B.A.N. -- Bond Anticipation Note
C.P. -- Commercial Paper
R.A.N. -- Revenue Anticipation Note
T.A.N. -- Tax Anticipation Note
T.R.A.N. -- Tax & Revenue Anticipation Note
V.R. -- Variable Rate
V.R.D.B. -- Variable Rate Demand Bond
V.R.D.N. -- Variable Rate Demand Note
(g) At May 31, 1999, the cost of securities purchased, including interest
purchased, on a when-issued basis was $7,669,520.
(h) Non-income producing. Item identified is in default as to payment of
interest and/or principal.
(i) Partially pledged as initial deposit on the following open interest rate
futures contracts (see Note 4 to the financial statements):
Type of security Notional amount
Purchase contracts
Municipal Bonds, Sept. 1999 $250,000
(j) At May 31, 1999, the cost of securities for federal income tax purposes was
approximately $5,291,457,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $542,753,000
Unrealized depreciation (30,151,000)
-----------
Net unrealized appreciation $512,602,000
<PAGE>
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