FIDELITY
(REGISTERED TRADEMARK)
MUNICIPAL MONEY MARKET
FUND
ANNUAL REPORT
OCTOBER 31, 1997
CONTENTS
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.
PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.
FUND TALK 6 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.
INVESTMENT CHANGES 8 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS
AND ONE YEAR.
INVESTMENTS 9 A COMPLETE LIST OF THE FUND'S INVESTMENTS.
FINANCIAL STATEMENTS 45 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.
NOTES 49 NOTES TO THE FINANCIAL STATEMENTS.
REPORT OF INDEPENDENT 52 THE AUDITORS' OPINION.
ACCOUNTANTS
DISTRIBUTIONS 53
PROXY VOTING RESULTS 54
To reduce expenses and demonstrate respect for our environment, we
have initiated a project through which we will begin eliminating
duplicate copies of most financial reports and prospectuses to most
households, even if they have more than one account in the fund. If
additional copies of financial reports, prospectuses or historical
account information are needed, please call 1-800-544-6666.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT
AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY
THE FDIC, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE
SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL
AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Although financial turmoil in Pacific Basin countries was a catalyst
for significant volatility in U.S. markets in late October, the
Standard & Poor's 500 Index remained up more than 25% year-to-date,
twice its historical annual average. Meanwhile, bond markets -
primarily influenced by a relatively steady flow of positive news on
the inflation front - continued to post moderate returns through the
first 10 months of 1997.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. You should also keep money you'll need in the near future in a
more stable investment.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are
available 24 hours a day, seven days a week to provide you the
information you need to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income. Yield measures the income paid by a fund. Since a
money market fund tries to maintain a $1 share price, yield is an
important measure of performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY MUNICIPAL MONEY MARKET FUND 3.28% 15.34% 46.02%
ALL TAX-FREE MONEY MARKET FUNDS AVERAGE 3.11% 14.40% 43.50%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. To measure how the fund's performance stacked up against its
peers, you can compare it to the all tax-free money market funds
average which reflects the performance of municipal money market funds
with similar objectives tracked by IBC Financial Data, Inc. The past
one year average represents a peer group of 439 mutual funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY MUNICIPAL MONEY MARKET FUND 3.28% 2.90% 3.86%
ALL TAX-FREE MONEY MARKET FUNDS AVERAGE 3.11% 2.72% 3.67%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
11/3/97 7/28/97 4/28/97 2/3/97 10/28/96
FIDELITY MUNICIPAL 3.29% 3.34% 3.76% 3.13% 3.19%
MONEY MARKET FUND
ALL TAX-FREE MONEY MARKET 3.13% 3.12% 3.57% 2.99% 3.02%
FUNDS AVERAGE
FIDELITY MUNICIPAL 5.14% 5.22% 5.88% 4.89% 4.98%
MONEY MARKET FUND
TAX-EQUIVALENT
Row: 1, Col: 1, Value: 3.29
Row: 1, Col: 2, Value: 3.13
Row: 1, Col: 3, Value: 5.14
Row: 2, Col: 1, Value: 3.34
Row: 2, Col: 2, Value: 3.09
Row: 2, Col: 3, Value: 5.22
Row: 3, Col: 1, Value: 3.76
Row: 3, Col: 2, Value: 3.57
Row: 3, Col: 3, Value: 5.88
Row: 4, Col: 1, Value: 3.13
Row: 4, Col: 2, Value: 2.99
Row: 4, Col: 3, Value: 4.89
Row: 5, Col: 1, Value: 3.19
Row: 5, Col: 2, Value: 3.02
Row: 5, Col: 3, Value: 4.98
Fidelity Municipal
Money Market Fund
All Tax-Free
Money Market
Funds Average
Fidelity Municipal
Money Market Fund
Tax-equivalent
6% -
5% -
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the all
tax-free money market funds average as tracked by IBC Financial Data,
Inc. Or you can look at the fund's tax-equivalent yield, which is
based on a combined effective 1997 income tax rate of 36%. A portion
of the fund's income may be subject to the alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields on
taxable investments. However,
a straight comparison between
the two may be misleading
because it ignores the way
taxes reduce taxable returns.
Tax-equivalent yield - the yield
you'd have to earn on a similar
taxable investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Diane McLaughlin, Portfolio Manager of Fidelity
Municipal Money Market Fund
Q. DIANE, WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST YEAR?
A. Market expectations regarding the direction of interest rates
shifted frequently over the past year due to changing sentiment about
the rate of economic growth and its implications for the Federal
Reserve Board's monetary policy. In a December speech that was widely
reported by the media, Fed Chairman Alan Greenspan expressed his
concern that "irrational exuberance" in the stock market could lead to
increased consumer spending that would result in inflation. Nineteen
ninety-six ended on a much stronger economic note than expected, with
real GDP - the gross domestic product adjusted for inflation - rising
at a healthy 4.3% annual rate in the fourth quarter. Sustainable
non-inflationary economic growth is thought to be about 2.5%; growth
above this rate tends to put upward pressure on interest rates. As
1996 drew to a close, however, the producer price index increased only
0.1% and the consumer price index was flat for the fourth quarter,
indicating that inflation had remained relatively tame.
Q. WHAT'S HAPPENED THUS FAR IN 1997?
A. After 14 months of steady policy, the Fed raised the rate banks
charge each other for overnight loans - known as the fed funds target
rate - from 5.25% to 5.50% in March. Real GDP for the first quarter of
1997 posted a 4.9% gain and May's payroll data revealed a 4.8%
unemployment rate, the lowest level since 1973. As a result, many
market observers felt the Fed would continue to raise rates. That
sentiment changed, however, after Greenspan's semiannual
Humphrey-Hawkins testimony before Congress in July. At that time,
Greenspan said he felt business productivity improvements in recent
years had reduced the risk of the inflationary pressures that had
previously accompanied similar periods of low unemployment.
Greenspan's comments calmed the market, but only until mid-summer,
when second quarter real GDP was revised to 3.6% from the originally
reported 2.2% and fears of interest-rate increases resurfaced. Then,
in his testimony before Congress in October, Greenspan stated his
concern that tightening labor markets might create pricing pressures.
Many believed that these comments foreshadowed the possibility of
further Fed rate increases.
Q. WHAT WAS YOUR STRATEGY AS THE YEAR UNFOLDED?
A. The fund's average maturity started the period at 69 days, longer
than the average of its competitors. In anticipation of higher rates,
however, the fund's average maturity was shortened significantly
following Greenspan's now infamous "irrational exuberance" speech in
December and even more so after the fed funds target rate hike in
March. My investment focus was on the short end of the money market
yield curve, as increased supply of these shorter-term securities made
that part of the market more attractive. The fund did participate,
however, in the one-year market during the summer when supply became
more plentiful, resulting in more attractive yields. Despite purchases
of these securities, though, the fund's average maturity remained
shorter than that of its peers, ending the period at 44 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on October 31, 1997, was 3.31%, compared
to 3.19% 12 months ago. The latest yield was the equivalent of a 5.17%
taxable yield for investors in the 36% federal tax bracket. Through
October 31, 1997, the fund's 12-month total return was 3.28%, compared
to 3.11% for the all tax-free money market funds average, according to
IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. Although it seemed likely as recently as mid-October that the Fed
would raise the fed funds target rate, recent events have given the
market pause. Specifically, the financial crisis in Southeast Asia may
lead to a deceleration in U.S. export growth. In addition, this
turmoil probably will worsen the already weak economic conditions in
Japan. As the dollar continues to appreciate against currencies in
this region, imports from Asia will become even less expensive,
intensifying competition and further suppressing inflation.
Furthermore, recent declines in the U.S. stock market may dampen
consumer spending. Therefore, it seems less likely - at least over the
near term - that the Fed will raise rates in the face of moderating
economic activity. However, the long-term effects of this disruption
overseas are not known. Even with little evidence of inflation, a
sharp acceleration of growth or further tightening in the labor
markets would likely prompt the Fed to raise rates in order to ward
off potential price pressures.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
FUND FACTS
GOAL: HIGH CURRENT INCOME
WHILE MAINTAINING A STABLE
$1 SHARE PRICE BY INVESTING IN
HIGH-QUALITY, SHORT-TERM
MUNICIPAL MONEY MARKET
SECURITIES
FUND NUMBER: 010
TRADING SYMBOL: FTEXX
START DATE: JANUARY 2, 1980
SIZE: AS OF OCTOBER 31,
1997, MORE THAN $4.1 BILLION
MANAGER: DIANE MCLAUGHLIN,
SINCE 1996; MANAGER, SEVERAL
FIDELITY AND SPARTAN MUNICIPAL
MONEY MARKET FUNDS; JOINED
FIDELITY IN 1992
(CHECKMARK)
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
10/31/97 4/30/97 10/31/96
0 - 30 73 75 62
31 - 90 14 18 9
91 - 180 2 4 10
181 - 397 11 3 19
WEIGHTED AVERAGE MATURITY
10/31/97 4/30/97 10/31/96
FIDELITY MUNICIPAL 44 DAYS 28 DAYS 69 DAYS
MONEY MARKET FUND
ALL TAX-FREE MONEY MARKET 49 DAYS 40 DAYS 53 DAYS
FUNDS AVERAGE*
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF OCTOBER 31, 1997 AS OF APRIL 30, 1997
Row: 1, Col: 1, Value: 2.0
Row: 1, Col: 2, Value: 11.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 17.0
Row: 1, Col: 5, Value: 34.0
Row: 1, Col: 6, Value: 33.0
Row: 1, Col: 1, Value: 4.0
Row: 1, Col: 2, Value: 12.0
Row: 1, Col: 3, Value: 4.0
Row: 1, Col: 4, Value: 12.0
Row: 1, Col: 5, Value: 68.0
Variable rate
demand
notes (VRDNs) 69%
Commercial paper
(including
commercial
paper mode) 17%
Tender bonds 3%
Municipal notes 10%
Other 1%
Variable rate
demand
notes (VRDNs) 68%
Commercial paper
(including
commerical
paper mode) 12%
Tender bonds 4%
Municipal notes 12%
Other 4%
*SOURCE: IBC'S MONEY FUND REPORT (registered trademark)
INVESTMENTS OCTOBER 31, 1997
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL SECURITIES (A) - 100.0%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ALABAMA - 1.2%
Alabama Hsg. Fin. Auth. Multi-Family Hsg. Rev.
(Gazebo East Proj.) Series 1991 B, 4.10%,
LOC AmSouth Bank, Birmingham, AL, VRDN $ 3,510 $ 3,510
Alabama Ind. Dev. Auth. (Southern Ionics Proj.)
3.85%, LOC Southtrust Bank, Alabama, VRDN (e) 4,000 4,000
Chatam Ind. Dev. Board Poll. Cont. Rev. Bonds
(Alabama Elec. Coop., Inc. Proj.) Series 1993:
3.90% 11/7/97 (Nat'l. Rural Util. Coop. Fin.
Guaranteed) CP mode 3,800 3,800
3.85% 1/21/98 (Nat'l. Rural Util. Coop. Fin.
Guaranteed) CP mode 2,600 2,600
Courtland Ind. Dev. Board (Speciality Minerals, Inc.) 3.75%,
LOC Wachovia Bank, NA, VRDN (e) 5,000 5,000
Decatur Ind. Dev. Board Ind. Dev. Rev. (Monsanto Co. Proj.)
Series 1996, 3.80%, VRDN (e) 1,900 1,900
Decatur Ind. Dev. Board Solid Waste Rev. (Trico Steel Co. Proj.)
Series 1997, 3.75%, LOC Chase Manhattan Bank, VRDN (e) 3,500 3,500
Demopolis Ind. Dev. Board Rev., VRDN:
(McClain of Alabama Proj.) 3.90%,
LOC LaSalle Nat'l. Bank, Chicago, Illinois (e) 2,325 2,325
(Systech Environmental Corp.) Series 1990, 3.80%,
LOC NBD Bank, NA (e) 1,800 1,800
Jackson Ind. Dev. Auth. (Specialty Minerals, Inc.)
3.75%, LOC Wachovia Bank, NA, VRDN 4,300 4,300
Lafayette Ind. Dev. Rev. (Kardoes Rubber Co., Inc.)
3.85%, LOC Amsouth Bank, Birmingham, AL, VRDN (e) 3,800 3,800
Mobile Ind. Dev. Board Rev. (Newark Group Ind. Proj.)
3.80%, LOC First Union Nat'l. Bank (NC) VRDN (e) 7,450 7,450
Montgomery Ind. Dev. Board Rev. (Feldmeier/Alabama
Equipment) Series 1996, 3.85%, LOC Southtrust Bank,
Alabama, VRDN (e) 925 925
Roanoke Ind. Dev. Board (SteelFab, Inc. Proj.) Series 1997,
3.85%, LOC Nationsbank Corp., VRDN (e) 1,500 1,500
Tuscaloosa County Ind. Dev. Auth. Rev. (Hanna Steel Co.)
3.85%, LOC Nationsbank Corp., VRDN 1,145 1,145
Wetumpka Ind. Dev. Board Rev. (US Fabtec LLC Proj.)
3.80%, LOC Bank of Tokyo-Mitsubishi Ltd., VRDN (e) 1,860 1,860
49,415
ALASKA - 1.4%
Alaska Ind. Dev. & Export Auth., VRDN:
(Fairbanks Gold Mining) Series 1997, 3.75%,
LOC Union Bank of Switzerland (e) 23,700 23,700
(Healy Clean Coal Proj.) Series 1996 A, 3.70%,
LOC Bank of America Nat'l. Trust & Savings 19,000 19,000
Alaska Hsg. Fin. Corp. Participating VRDN, Series 1997 F, 3.74%
(Liquidity Facility Bank of America Nat'l. Trust & Savings) (f) 2,685
2,685
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ALASKA - CONTINUED
Valdez Marine Terminal Rev. Rfdg.:
Bonds (Atlantic Richfield Co.) Series 1994 A,
3.75% 1/27/98, CP mode $ 5,000 $ 5,000
(Atlantic Richfield Co.) Series 1994 B, 3.75%, VRDN 7,000 7,000
57,385
ARIZONA - 1.6%
Apache County Ind. Dev. Auth. (Tucson Elec. Pwr. Co. Proj.)
Series 1981 B, 3.75%, LOC Bank of
Tokyo-Mitsubishi Ltd., VRDN 13,000 13,000
Arizona Agric. Impt. & Pwr. Dist. (Salt River Proj.)
3.75% 11/19/97, CP 3,700 3,700
Flagstaff Ind. Dev. Auth. Bonds (Citizens Utils. Co.)
3.90% 1/15/98, CP mode (e) 2,100 2,100
Maricopa County Ind. Dev. Auth. (Privado Park Apt. Proj.)
Series 1994 A, 3.75% (FNMA Guaranteed) VRDN (e) 1,000 1,000
Mohave County Ind. Dev. Auth. Rev. Bonds (Citizens Utils. Co.)
Series 1993 E:
3.80% 11/19/97, CP mode (e) 1,360 1,360
3.85% 12/11/97, CP mode (e) 2,500 2,500
Phoenix Civic Impt. Corp. Arpt. Impt. Series 1995,
3.70%, LOC Landesbank Hessen-Thuringen, VRDN (e) 18,000 18,000
Phoenix Ind. Dev. Auth., VRDN:
Multi-Family Hsg. Rev. (Bell Square Apt. Proj.) Series 1995,
3.80%, LOC General Elec. Capital Corp. 6,000 6,000
Rev. (Plastican Proj.) Series 1997, 3.90%,
LOC Fleet Nat'l. Bank (e) 2,700 2,700
Rev. Rfdg. (V.A.W. of America Proj.) Series 1997,
3.85%, LOC Nationsbank, NA (e) 1,100 1,100
Pima County Ind. Dev. Auth. (Tucson Elec. Pwr. Co. Proj.)
Series 1990 A, 3.80%, LOC Bankers Trust Co.,
VRDN (e) 2,000 2,000
Tempe Union High School Dist. #213 TAN (Maricopa County)
4.40% 6/30/98 2,000 2,007
Tucson Ind. Dev. Auth. Multi-Family Hsg. Rev.
(Lincoln Garden Proj.) 3.95%, LOC Sumitomo Bank Ltd., VRDN 5,625
5,625
Yavapi County Ind. Dev. Auth. Rev. Bonds
(Citizens Utils. Co.) Series 1993:
3.80% 11/18/97, CP mode (e) 4,600 4,600
3.85% 12/9/97, CP mode (e) 2,000 2,000
67,692
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ARKANSAS - 0.7%
Arkansas Dev. Fin. Auth. Single Family Mtg. Rev. Bonds
Series D, 4.05%, tender 7/1/98 (Canadian Imperial
Bank of Commerce Guaranteed) $ 8,200 $ 8,200
Arkansas Hosp. Equip. Fin. Auth. Rev.
(Baptist Health Proj.) Series 1995, 3.70%,
LOC Credit Suisse First Boston, VRDN 10,500 10,500
Clark County Solid Waste Disp. Rev. (Reynolds Metals Co. Proj.)
Series 1992, 3.75%, LOC SunTrust Bank, Atlanta, VRDN (e) 1,800 1,800
Little Rock School Dist. TRAN 4.25% 12/30/97 2,370 2,371
Miller County Solid Waste Disp. Rev. (Tyson Foods, Inc. Proj.)
Series 1996, 3.75%, LOC Commerzbank, AG, VRDN (e) 5,600 5,600
West Memphis Ind. Dev. Rev. (Proform Co. LLC Proj.)
Series 1996, 3.85%, LOC U.S. Bank, NA, VRDN (e) 1,000 1,000
29,471
CALIFORNIA - 5.0%
California Higher Ed. Student Loan Auth. Rev.:
Bonds:
Series 1987 C, 3.95%, tender 6/1/98,
LOC Student Loan Marketing Assoc. (e) 4,000 4,000
Series 1994 A, 3.95%, tender 6/1/98, LOC
State Street Bank & Trust Co., Boston (e) 7,450 7,450
Series E-5, 3.95%, tender 6/1/98, LOC Student
Loan Marketing Assoc. (e) 7,100 7,100
VRDN:
Series 1987 C, 3.70%,
LOC Student Loan Marketing Assoc. (e) 21,600 21,600
Series 1992 E-1, 3.70%,
LOC Student Loan Marketing Assoc. (e) 8,350 8,350
California Poll. Cont. Rev. (Pacific Gas & Elec. Co.)
Series 1997 B, 4.15%, LOC Deutsche Bank,
AG, VRDN (e) 1,000 1,000
California Poll. Cont. Fin. Auth. Solid Waste Disp. Rev.
(Shell Oil Co./Martinez Proj.) Series 1994 B, 4.10%,
VRDN (e) 4,700 4,700
California School Cash Reserves Prog. TRAN
Series 1997 A, 4.75% 7/2/98 (AMBAC Insured) 35,000 35,198
California Gen. Oblig. 3.85% 12/12/97, CP 13,000 13,000
California Participating VRDN, 4%
(Liquidity Facility Bank of New York) (f) 2,800 2,800
Central Valley School Fin. Auth. TRAN
Series 1997,4.50% 8/27/98 6,400 6,430
Clovis Unified School Dist. TRAN (Fresno County)
4.25% 6/30/98 13,300 13,338
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Fresno County Gen. Oblig. TRAN 4.25% 7/1/98 $ 20,000 $ 20,060
Kern High School Dist. TRAN, 4.50% 8/20/98 7,700 7,736
Los Angeles Unified School Dist. TRAN
Series 1997-98, 4.50% 7/1/98 8,300 8,337
Los Angeles County Gen. Oblig. TRAN 4.50% 6/30/98 10,860 10,905
Riverside County Gen. Oblig. TRAN 4.50% 6/30/98 12,700 12,744
San Luis Obispo County Office of Ed. TRAN
4.50% 6/30/98 5,000 5,020
South Coast Local Ed. Agcy. TRAN 4.50%
6/30/98 (MBIA Insured) 17,000 17,070
206,838
COLORADO - 1.8%
Aurora Multi-Family Hsg. Rev. (Aurora Meadows Apts.)
Series 1996, 3.90% (FNMA Guaranteed) VRDN (e) 8,300 8,300
Colorado Springs Util. Sys. Rev. Participating VRDN,
Series 1996 A SGB-28, 3.75%
(Liquidity Facility Societe Generale, France) (f) 6,900 6,900
Denver Arpt. Participating VRDN, 3.85%
(Liquidity Facility Caisse des Depots et Consigns) (e)(f) 27,000
27,000
Denver City & County Dept. of Aviation Arpt. Sys.
Participating VRDN, Series 1997 Q, 3.70%
(Liquidity Facility CoreStates Bank) (f) 5,600 5,600
Fort Collins Ind. Dev. Rev. (Phelps-Tointon
Millwork Proj.) Series 1993, 3.80%, LOC Bank One,
Wisconsin, VRDN (e) 1,350 1,350
Highlands Ranch Metro Dist. #2 Participating VRDN,
Series 1996 E, 3.80% (Liquidity Facility
Norwest Bank NA, Minnesota) (f) 1,850 1,850
Jefferson County Participating VRDN,
Series 1996 F, 3.80% (Liquidity Facility
Norwest Bank NA, Minnesota) (f) 5,000 5,000
Platte County River Pwr. Auth. Elec. Rev. Bonds Series S-1,
3.75% 12/11/97 (BPA Morgan Guaranty
Trust Co., NY) CP mode 15,700 15,700
Westminster County Multi-Family Hsg. Rev. (Lakeview Apts.)
Series 1997, 3.90% (FNMA Guaranteed) VRDN (e) 4,510 4,510
76,210
CONNECTICUT - 0.1%
Connecticut Hsg. Fin. Auth. Participating VRDN, Series 1997 L,
3.85% (Liquidity Facility CoreStates Bank) (e)(f) 4,700 4,700
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
DELAWARE - 0.7%
Delaware Econ. Dev. Auth., VRDN:
Multi-Family Rev. (Schoolhouse Trust Prog.)
3.75%, LOC Marine Midland Bank $ 25,400 $ 25,400
(Delmarva Pwr. & Lt. Co. Proj.):
Series 1988, 4.20% (e) 1,800 1,800
Series 1994, 4.20% (e) 3,675 3,675
30,875
DISTRICT OF COLUMBIA - 0.4%
District of Columbia Participating VRDN, Series 1997 SGA-62,
4.05% (Liquidity Facility Societe Generale, France) (f) 4,350 4,350
Metro Washington Arpt. Auth. Rev. Bonds:
3.82% 2/20/98, LOC Nationsbank Corp., CP mode (e) 10,500 10,500
3.90% 2/20/98, LOC Nationsbank Corp., CP mode (e) 500 500
15,350
FLORIDA - 3.8%
Alachua County Health Fac. Auth. Rev. Bonds (Academic
Research Bldg. Proj.) (Florida Clinical Practice Assoc.)
Series 1989, 3.75% 11/14/97,
LOC Barnett Bank, NA, CP mode 1,000 1,000
Brevard County Hsg. Fin. Auth. Rev.
(Sun Pointe Bay Apts. Proj.) Series 1993,
3.75% (Continental Casualty Co. Guaranteed) VRDN 2,180 2,180
Broward County Sales Tax Rev. Series B, 3.85% 12/5/97
(Liquidity Facility Bank of Tokyo-Mitsubishi Ltd.) CP (e) 14,000
14,000
Dade County Hsg. Fin. Auth. Single Family Mtg. Rev.
Bonds Series 1997 C, 4.05%, tender 10/16/98
(FGIC/Capital Markets Svcs. Guaranteed) (e) 4,200 4,200
Dade County Wtr. & Swr. Sys. Participating VRDN,
Series SG-74, 3.75%
(Liquidity Facility Societe Generale, France) (f) 1,365 1,365
Florida Board of Ed. Participating VRDN, Series 1996,
3.79% (Liquidity Facility Citibank, NA) (f) 4,700 4,700
Florida Hsg. Fin. Agcy. Multi-Family Hsg. Rev. Rfdg.
(Hillsborough-Oxford Proj.) Series D, 3.85% (Continental
Casualty Co. Guaranteed) VRDN 5,000 5,000
Florida Local Gov't. Fin. Commission Series A, 3.85% 1/14/98,
LOC First Union Nat'l. Bank (NC) CP 4,100 4,100
Florida Dept. of Trans. Participating VRDN, 3.75%
(Liquidity Facility Societe Generale, France) (f) 2,600 2,600
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
FLORIDA - CONTINUED
Florida Muni. Pwr. Agcy. Rev. Bonds Series A,
3.85% 11/18/97, LOC First Union Nat'l. Bank (NC) CP mode $ 4,210 $
4,210
Florida Insured Muni. Securities Trust Participating VRDN,
Series 1996, 3.80% (Liquidity Facility
Norwest Bank NA, Minnesota) (f) 1,500 1,500
Hillsborough County Aviation Auth. (Tampa Int'l. Arpt.)
3.85% 12/8/97, LOC Nat'l.
Westminster Bank, PLC, CP (e) 4,600 4,600
Indian River County Hosp. Dist. Rev. Bonds Series 1989,
3.75% 11/14/97, LOC Kredietbank NV, CP mode 4,300 4,300
Jacksonville Hosp. Rev. (Univ. Med. Ctr.) Series 1988,
3.90%, LOC Sumitomo Bank Ltd., VRDN 1,200 1,200
Jacksonville Elec. Auth. Series C-1:
3.85% 11/10/97 (Liquidity Facility Morgan
Guaranty Trust Co., NY) CP 1,000 1,000
3.80% 12/16/97 (Liquidity Facility Morgan
Guaranty Trust Co., NY) CP 4,000 4,000
Lee County Hosp. Board Rev. Bonds (Lee Memorial Hosp. Proj.)
Series 1997 B, 3.85% 1/26/98, LOC SunTrust Bank,
Central Florida, NA, CP mode 10,000 10,000
Orlando & Orange County Expressway Auth. Participating
VRDN, Series 1996 C, 3.80% (Liquidity Facility
Norwest Bank NA, Minnesota) (f) 1,500 1,500
Reedy Creek Impt. Dist. Participating VRDN,
3.74% (Liquidity Facility Citibank, NY) (f) 11,400 11,400
Sarasota County Pub. Hosp. Dist. Rev. Bonds
(Sarasota Mem. Hosp.):
Series 1991:
3.90% 12/10/97, CP mode 8,500 8,500
3.85% 1/27/98, CP mode 6,000 6,000
3.85% 1/28/98, CP mode 15,000 15,000
3.85% 1/29/98, CP mode 9,000 9,000
Series 1993 A:
3.90% 12/10/97, CP mode 5,000 5,000
3.85% 1/27/98, CP mode 15,000 15,000
3.85% 1/28/98, CP mode 900 900
Sunrise Util. Sys. Participating VRDN (f):
Series SGB-16, 3.75% (Liquidity Facility Societe Generale, France)
1,000 1,000
Series SGB-17, 3.75% (Liquidity Facility Societe Generale, France)
6,400 6,400
Sunshine State Gov't. Fin. Commission Rev. Series 1994,
3.85% 11/7/97, CP 6,100 6,100
155,755
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
GEORGIA - 3.2%
Albany Dougherty Hosp. Auth. (Phoebe Puttnay
Mem. Hosp.) Series 1996, 3.75% (AMBAC Insured)
(BPA SunTrust Bank, Atlanta) VRDN $ 1,900 $ 1,900
Albany Dougherty Payroll Dev. Auth. Poll. Cont. Rev. Rfdg.
(Philip Morris Co. Proj.) 3.70%, VRDN 2,790 2,790
Atlanta Participating VRDN, Series SG-58, 3.80%
(Liquidity Facility Societe Generale, France) (f) 7,200 7,200
Brunswick & Glynn County Dev. Auth.
(Georgia Pacific Corp. Proj.) Series 1996, 3.75%, LOC
Commerzbank, AG, VRDN (e) 10,000 10,000
Burke County Dev. Auth. Poll. Cont. Rev. (Georgia Pwr. Co.)
Series 1994-5, 4.05%, VRDN 1,900 1,900
Cartersville Ind. Dev. Board (Burtin Realty Enterprises) 3.75%,
LOC Wachovia Bank of Georgia, NA, Atlanta, VRDN 1,000 1,000
Chattooga County Ind. Dev. Board (Aladdin Manufacturing Co.)
3.85%, LOC Wachovia Bank of Georgia,
NA, Atlanta, VRDN (e) 3,300 3,300
Cherokee County Dev. Auth. Rev. (Blue Circle Aggregates, Inc.)
Series 1997, 3.80%,
LOC Den Danske Bank Group AS, VRDN (e) 3,500 3,500
Clayton County Hsg. Auth. Multi-Family Hsg. Rev.
(Hyde Park Club Apts. Proj.) Series 1997,
3.85%, LOC Key Bank Nat'l. Assoc., VRDN (e) 3,500 3,500
Cobb County Ind. Dev. Board (Amoena Corp. Proj.)
Series 1992, 3.75%,
LOC Bayerische Hypotheken-und Wechsel Bank, VRDN (e) 1,350 1,350
Coweta County Ind. Dev. Auth. (E.G.O. Products, Inc. Proj.)
Series 1996, 3.80%, LOC Swiss Bank Corp., VRDN (e) 3,900 3,900
Dekalb County Dev. Auth. Ind. Dev. Rev. (Qualex Proj.)
3.85%, LOC Comerica Bank, Texas, VRDN (e) 3,100 3,100
Dekalb County Multi-Family Hsg. Rev., VRDN:
(Bryton Hill Apts. Proj.) Series 1996, 3.75%,
LOC PNC Bank, Kentucky (e) 1,000 1,000
(Eales Trace Apts.) Series 1996, 3.70%,
LOC Key Bank Nat'l. Assoc. (e) 2,675 2,675
Floyd County Dev. Auth. Ind. Dev. Rev. (Marglen Ind., Inc. Proj.)
Series 1997, 3.75%, LOC SunTrust Bank, Atlanta,
VRDN (e) 1,500 1,500
Georgia Muni. Elec. Auth. Bonds (Gen. Resolution Proj.):
Series 1985 A:
3.90% 11/07/97, LOC Bayerische Landesbank
Girozentrale, CP mode 6,000 6,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
GEORGIA - CONTINUED
Georgia Muni. Elec. Auth. Bonds (Gen. Resolution Proj.): - continued
Series 1985 A: - continued
3.75% 11/14/97, CP mode $ 1,580 $ 1,580
Series 1985 B:
3.75% 11/14/97, CP mode 5,150 5,150
3.75% 11/14/97, CP mode 3,500 3,500
3.80% 1/15/98, CP mode 2,100 2,100
Georgia Participating VRDN (f):
Series BTP-79, 3.775% (Liquidity Facility Bankers Trust Co.) 6,000
6,000
Series BTP-122, 3.80% (BPA Bankers Trust Co.) 4,580 4,580
Georgia Port Auth. (Colonel's Island Terminal)
3.75%, LOC SunTrust, Atlanta, VRDN (e) 1,940 1,940
Gwinnett Ind. Dev. Board., VRDN:
(Klockner Namasco Corp.) 3.80%, LOC Nationsbank Corp. (e) 1,000
1,000
(O'Neal Steel, Inc.) 3.80%, LOC Nationsbank Corp. (e) 1,500 1,500
Gwinnett County Ind. Dev. Rev., VRDN:
(Curtis 1000, Inc. Proj.) Series 1996, 3.75%,
LOC SunTrust Bank, Atlanta (e) 1,200 1,200
(Sheperd Construction Co., Inc.) 3.75%,
LOC Suntrust Bank (e) 1,200 1,200
Gwinnett County Multi-Family Hsg. Rev. (Herrington Woods Apt.)
Series 1996 A, 3.70%, LOC Key Bank Nat'l. Assoc., VRDN (e) 6,700
6,700
Henry County Dev. Auth. Solid Waste Rev.
(Atlas Roofing Corp. Proj.) Series 1997, 3.75%,
LOC SunTrust Bank, Atlanta, VRDN (e) 2,500 2,500
Jenkins County Ind. Dev. Board (Metal Industries, Inc.)
3.80%, LOC Nationsbank Corp., VRDN (e) 2,600 2,600
Metro Atlanta Rapid Transit Auth. Participating
VRDN, Series SG-57, 3.80% (Liquidity Facility Societe
Generale, France) (f) 10,000 10,000
Monroe County Dev. Auth. Poll. Cont. Rev. (Georgia Pwr. Co.)
Series 1997, 4.20%, VRDN 1,600 1,600
Paulding County Ind. Bldg. Auth. Rev. (Cadillac Products, Inc.)
Series 1994, 3.80%, LOC NBD Bank, NA, VRDN (e) 4,190 4,190
Roswell Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Roswell-Oxford Proj.) Series 1990, 3.85%
(Continental Casualty Co. Guaranteed) 6,100 6,100
(Autumnbrook Apts.) Series 1991 A, 3.70%,
LOC AmSouth Bank, Birmingham, Alabama 7,165 7,165
Savannah Econ. Dev. Auth. Rev. (Home Depot, Inc.)
Series 1995 A, 3.75%, VRDN (e) 1,500 1,500
Tift County Ind. Dev. Auth. Ind. Dev. Rev.
(Chickasha of Georgia Proj.) Series 1997,
3.80%, LOC Bank of Tokyo-Mitsubishi Ltd., VRDN (e) 3,100 3,100
Vienna Ind. Dev. Auth. (Mid Georgia Processing Co.)
3.80%, LOC Nationsbank Corp., VRDN (e) 2,100 2,100
Worth County Ind. Dev. Auth. Rev. Rfdg. (Seabrook Peanut Co. Proj.)
Series 1996 B, 3.75%, LOC SunTrust Bank, Atlanta, VRDN 1,700 1,700
133,620
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
HAWAII - 0.4%
Hawaii Participating VRDN, Series 1993 CH, 3.65%
(Liquidity Facility Morgan Guaranty Trust Co., NY) (f) $ 6,460 $ 6,460
Hawaii Dept. of Budget & Fin.:
Spl. Purpose Rev. Bonds (Citizens Utils. Co.):
Series 1988 A, 3.90% 2/12/98, CP mode (e) 4,400 4,400
Series 1988 B, 3.80% 1/15/98, CP mode (e) 2,000 2,000
Participating VRDN, Series PT-139,
3.85% (Liquidity Facility Commerzbank, AG) (e)(f) 5,000 5,000
17,860
IDAHO - 1.0%
Idaho Hsg. & Fin. Assoc. Hsg. Rev. (Assisted Living Concept)
Series 1997, 3.70%,
LOC US Nat'l. Bank of Oregon, VRDN (e) 3,500 3,500
Idaho Hsg. Assoc. Participating VRDN, 3.85%
(Liquidity Facility Merrill Lynch & Co., Inc.) (f) 3,300 3,300
Idaho Gen. Oblig. TAN 4.625% 6/30/98 33,600 33,759
40,559
ILLINOIS - 8.0%
Bolingbrook Multi-Family Hsg. Rev. (Amberton Apts.) 3.75%,
LOC LaSalle National Bank of Chicago, VRDN (e) 7,900 7,900
Carol Stream Multi-Family Hsg. Rev. (St. Charles Square) 3.75%
(FNMA Guaranteed) VRDN (e) 2,000 2,000
Chicago Arpt. Spl. Fac. Rev. (Centerpoint O'Hare LLC) 3.70%,
LOC First Nat'l. Bank of Chicago, VRDN (e) 10,000 10,000
Chicago School Reform Board Participating VRDN (f):
Series 96 BB, 3.79% (Liquidity Facility Bank of America
Nat'l. Trust & Savings) 18,690 18,690
Unltd. Tax Series 1997 E, 3.75%
(Liquidity Facility CoreStates Bank) 8,200 8,200
Chicago Ind. Dev. Rev., VRDN:
(Ampere Automotive Corp. Proj.) Series 1996, 3.75%,
LOC Harris Trust & Savings Bank, Chicago (e) 4,000 4,000
(Guernsey Bel, Inc. Proj.) 3.75%,
LOC Harris Trust & Savings Bank, Chicago (e) 1,500 1,500
Chicago Gas Supply Rev. Bonds (Peoples Gas Lt. & Coke Co.)
3.70%, tender 12/1/97 (e) 4,400 4,400
Chicago O'Hare Int'l. Arpt. Rev. Series 1988 A, 3.75%,
LOC Bayerische Landesbank Gironzentrale, VRDN (e) 36,900 36,900
Chicago O'Hare Int'l Arpt. Passenger Fac. Participating VRDN,
Series PT-138, 3.85% (Liquidity Facility Commerzbank, AG) (f) 5,890
5,890
Chicago Participating VRDN (f):
Series 1993, 3.74% (Liquidity Facility Bank of New York, NA) 19,000
19,000
Series 1997 V, 3.70% (Liquidity Facility CoreStates Bank) 11,560
11,560
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ILLINOIS - CONTINUED
Cook County Reg. Trans. Auth. Participating VRDN Series SG-81,
3.90% (Liquidity Facility Societe Generale, France) (f) $ 1,500 $
1,500
Crestwood Village Ind. Dev. Rev. (GMG Warehouse LLC Proj.)
3.90%, LOC LaSalle Nat'l. Bank, Chicago, Illinois, VRDN (e) 2,500
2,500
Decatur Wtr. Rev. Bonds Series 1985, 3.70% 11/10/97,
LOC Sumitomo Bank Ltd., Japan, CP mode 8,000 8,000
Glendale Heights Participating VRDN, Series PT-106, 3.85%
(Liquidity Facility Bayerische Hypotheken-und Wechsel Bank) (f) 2,600
2,600
Illinois Dev. Fin. Auth., VRDN:
Ind. Dev. Rev.:
(FC Ltd. Partnership) 3.90%,
LOC LaSalle Nat'l. Bank, Chicago, Illinois (e) 750 750
(Kindlon Partners Proj.) Series 1994, 3.90%,
LOC LaSalle Nat'l. Bank, Chicago, Illinois (e) 900 900
(Maples & Sprowl Steel Ltd. Proj.) Series 1996 A,
3.85%, LOC LaSalle Nat'l. Bank, Chicago, Illinois (e) 2,800 2,800
(Overton Gear & Tool Corp.) Series 1994, 3.75%,
LOC Harris Trust & Savings Bank, Chicago (e) 2,100 2,100
(Touhy Ltd. Partnership) Series 1996, 3.90%,
LOC LaSalle Nat'l. Bank, Chicago, Illinois (e) 1,400 1,400
(Toyal America, Inc. Proj.) 3.80%,
LOC Bank of Tokyo-Mitsubishi Ltd. (e) 3,800 3,800
Ind. Proj. Rev. (Kindlon Partners Proj.) 3.90%,
LOC LaSalle Nat'l. Bank, Chicago, Illinois (e) 900 900
Poll. Cont. Rev.:
(Illinois Pwr. Co. Proj.):
Series 1987 B, 3.75%,
LOC Bank of Tokyo-Mitsubishi Ltd. (e) 9,400 9,400
Series 1987 C, 3.75%,
LOC Bank of Tokyo-Mitsubishi Ltd. (e) 1,600 1,600
Series 1987 D, 4%, LOC Mitsubishi Bank Ltd. (e) 5,000 5,000
Series A, 3.75%, (MBIA Insured)
(Liquidity Facility First Nat'l. Bank of Chicago) (e) 21,200
21,200
Series B, 3.75% (MBIA Insured)
(Liquidity Facility First Nat'l. Bank of Chicago) (e) 27,100
27,100
Series C, 3.70%, (MBIA Insured)
(Liquidity Facility First Nat'l. Bank of Chicago) (e) 15,200
15,200
Rev. (Olive Can Co. Proj.) 3.90%,
LOC LaSalle Nat'l. Bank, Chicago, Illinois (e) 3,040 3,040
Mutil-Family Hsg. Rev. Rfdg. (Garden Glen Apts.)
Series 1993, 3.85% 1,700 1,700
Illinois Edl. Facs. Auth. Participating VRDN, Series 1997 U,
3.75% (AMBAC Insured) (Liquidity Facility Corestates Bank) (f) 8,040
8,040
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ILLINOIS - CONTINUED
Illinois Health Facs. Auth. Rev. (Methodist Med. Ctr. Proj.)
Series 1985 B, 3.80%, LOC Sumitomo Bank, Ltd. Japan, VRDN $ 7,800 $
7,800
Illinois Hsg. Dev. Auth. Multi-Family Hsg. Rev. (Williamsburg
Apt. Proj.) Series 1991, 3.75%, (FNMA Guaranteed)
LOC Landesbank Hessen-Thuringen, VRDN (e) 13,300 13,300
Illinois Participating VRDN, 3.80% (Liquidity Facility
Societe Generale, France) (f) 4,000 4,000
Illinois Reg. Trans. Auth. Participating VRDN (f):
Series SG-19, 3.75% (Liquidity Facility Societe Generale, France)
8,675 8,675
Series SG-82, 3.80% (Liquidity Facility Societe Generale, France)
14,500 14,500
Illinois Student Asst. Commission Student Loan Rev. Series 1997 A,
3.70%, LOC First Nat'l. Bank of Chicago, VRDN (e) 7,700 7,700
Libertyville Ind. Rev. Rfdg. (Libertyville Manor Facs. Proj.)
Series 1992, 3.70%, LOC First of America Bank, VRDN 3,720 3,720
Lisle Village Multi-Family Hsg. Rev.
(Devonshire of Lisle Proj.) Series 1991, 3.75%,
LOC LaSalle Nat'l. Bank, Chicago, Illinois, VRDN (e) 3,800 3,800
Mundelein Ind. Dev. Rev. (Print-O-Tape Proj.) Series 1997,
3.75%, LOC Harris Trust & Savings Bank, Chicago, VRDN 5,200 5,200
Plainfield Ind. Dev. Auth. (Plainfield Molding, Inc.) Series 1997,
3.90%, LOC LaSalle Nat'l. Bank, Chicago, Illinois, VRDN (e) 1,300
1,300
Southwestern Illinois Dev. Auth. Solid Waste Disp. Rev.
(Shell Oil Co./Wood River Proj.) Series 1992,
4.25%, VRDN (e) 3,000 3,000
Univ. of Illinois Participating VRDN, Series SG-65,
3.80% (Liquidity Facility Societe Generale, France) (f) 2,705 2,705
West Chicago Ind. Dev. Auth. Rev. (Bison Gear & Engineering Corp.)
3.75%, LOC Bank of America, Illinois, VRDN (e) 5,200 5,200
Woodridge, Dupage, Will & Cook County Ind. Dev. Rev.
(McDavid Knee Guard Proj.) 3.90%, LOC Firstar Bank of
Milwaukee, NA, VRDN (e) 1,300 1,300
331,770
INDIANA - 3.0%
Carmel Clay Ind. School Dist. TAN 4.25% 12/31/97 3,500 3,503
Columbus Rev. (Rock-Tenn Co. Mill Division) Series 1995,
3.75%, LOC SunTrust Bank, Atlanta, VRDN (e) 4,450 4,450
Connersville Econ. Dev. Rev. (Inland Southern Corp. Proj.)
Series 1997, 3.80%, LOC Bank of America, Illinois,
VRDN (e) 1,500 1,500
Crawford County (Jasper Engine Exchange Proj.) 3.80%,
LOC PNC Bank, VRDN (e) 3,800 3,800
Dyer Health Facs. Participating VRDN, Series 1992 A,
3.80% (FHA Insured) (Liquidity Facility Bank One, Akron) (f) 3,375
3,375
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
INDIANA - CONTINUED
Elkhart County (Burger Dairy Proj.) 3.90%, LOC
Old Kent Bank & Trust, VRDN (e) $ 2,140 $ 2,140
Ft. Wayne Health Care Facs. Participating VRDN,
3.80% (FHA Insured) (Liquidity Facility Bank One, Akron) (f) 3,400
3,400
Franklin Multi-Family Hsg. Rev. 3.75% (Liquidity Facility
Federal Home Loan Bank) VRDN 2,225 2,225
Gary Envir. Impt. Rev. Bonds (USX Proj.) Series 1986,
3.80% 11/19/97, LOC Bank of New York, NA, CP mode 2,500 2,500
Greenwood Econ. Dev. Rev. (Endress & Hauser, Inc.)
Series A, 3.70%, LOC Deutschebank, AG, VRDN (e) 4,000 4,000
Indiana Hsg. Fin. Auth. Participating VRDN, Series 1997 F,
3.85% (Liquidity Facility CoreStates Bank) (e)(f) 8,845 8,845
Indiana Trans. Fin. Auth. Arpt. Facs. Lease Participating VRDN (f):
Series BTP-217, 3.75% (Liquidity Facility Bankers Trust Co.) 3,500
3,500
Series BTP-219, 3.75% (Liquidity Facility Bankers Trust Co.) 6,930
6,930
Indianapolis Econ. Dev. Rev. (US, LLC Proj.) Series 1996,
3.80%, LOC Bank One, Indianapolis, VRDN (e) 950 950
Indianapolis Health Care Facs. Rfdg. Participating VRDN,
3.80% (FHA Insured) (Liquidity Facility Bank One, Akron) (f) 4,105
4,105
Indianapolis Gas Util. Sys. (Citizens Gas & Coke Util.):
3.70% 12/4/97 (Liquidity Facility NBD Bank, Detroit) CP 2,000 2,000
3.85% 12/11/97 (Liquidity Facility NBD Bank, Detroit) CP 7,000
7,000
3.85% 1/28/98 (Liquidity Facility NBD Bank, Detroit) CP 5,700 5,700
Kendallville Ind. Dev. Rev. Rfdg. (Philip Morris Co., Inc.)
Series 1993, 3.80%, VRDN 2,475 2,475
Lawrence County Ind. Dev. Board (D&M Tool Proj.) 3.84%,
LOC Huntington Nat'l. Bank of Columbus, VRDN (e) 2,500 2,500
Logansport Ind. Dev. Board (Nelson Tube Co.) Series 1996,
3.84%, LOC Huntington Nat'l. Bank, VRDN (e) 1,800 1,800
Muncie Ind. Dev. Rev. (Diamond Plastics Corp.) Series 1996,
3.85%, LOC Nationsbank Corp., VRDN (e) 3,500 3,500
Petersburg Solid Waste Disp. Rev.
(Indianapolis Pwr. & Lt. Co.) VRDN:
3.75% (e) 9,700 9,700
Series 1995 C, 3.80% (e) 8,300 8,300
Series 1996, 3.80% (e) 12,100 12,100
Portage Township Gen. Oblig. TAN 3.81% 12/31/97 2,200 2,200
Rockport Ind. Dev. Board. (AK Steel Corp. Proj.)
Series 1997 A, 3.75%,LOC PNC Bank, Ohio, VRDN (e) 5,500 5,500
St. Joseph County Econ. Dev. Auth. (Pin Oak Apts. Proj.) 3.75%,
LOC Federal Home Loan Bank, VRDN (e) 2,100 2,100
Scottsburg Ind. Dev. Board (Multi-Color Corp. Proj.) 3.80%,
LOC PNC Bank Ohio, VRDN (e) 3,000 3,000
123,098
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
IOWA - 0.4%
Iowa Fin. Auth. Small Bus. Dev. Rev. (Corporate Ctr. Proj.)
3.90% (Principal Mutual Life Ins. Co. Guaranteed) VRDN $ 6,000 $ 6,000
Iowa School Cash Anticipation Program TRAN Series A,
4.50% 6/26/98 (FSA Insured) 9,600 9,640
Marshalltown Commty. School Dist. RAN Series 1997,
4.50% 6/24/98 1,000 1,003
16,643
KANSAS - 0.5%
Coffeyville Ind. Dev. Rev. (Dixon Industries) Series 1994,
3.85%, LOC Nationsbank Corp., VRDN (e) 1,800 1,800
Kansas City Participating VRDN, Series1996 K, 3.85%
(Liquidity Facility Caisse des Depots et Consigns) (e)(f) 5,620
5,620
La Cygne Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co.) VRDN:
Series 1994, 3.75% 4,500 4,500
Rfdg. Series 1994, 3.75% 7,500 7,500
Wichita Arpt. Facs. Rev. (Cessna Citation Proj.) 3.85%, LOC
Westdeutsche Landesbank Gironzentrale, VRDN (e) 2,345 2,345
21,765
KENTUCKY - 1.5%
Boone County (Hennegan Co. Proj.)
3.77%, LOC Star Bank NA, VRDN 1,610 1,610
Elizabethtown Ind. Bldg. Rev. (Altec Proj.) Series 1997,
3.75%, LOC Wachovia Bank, NA, VRDN (e) 5,000 5,000
Franklin County Ind. Dev. Board (Certified Tool & Manufacturing
Proj.) 3.80%, LOC Bank One, Chicago, NA, VRDN (e) 3,500 3,500
Jefferson County Ind. Bldg. Rev. (Wynn Starr Foods Proj.)
Series 1996, 3.80%, LOC Bank One Kentucky, NA, VRDN (e) 2,790 2,790
Jefferson County Ind. Bldg. Rev.
(Commercial Lithographics Co. Project)
3.80%, LOC PNC Bank of Kentucky, VRDN (e) 3,000 3,000
Jefferson County Poll. Cont. Rev. Bonds (Louisville Gas &
Elec. Co.) Series 1996 A, 3.85% 12/17/97, CP mode 1,000 1,000
Kentucky Higher Ed. Student Loan Auth. Series 1991 E, 3.65%
(AMBAC Insured) (BPA Credit Suisse First Boston) VRDN (e) 5,500
5,500
Kentucky Hsg. Corp. Hsg. Rev. Bonds Series 1997 D,
4%, tender 12/31/97 (Bayerische Landesbank Gironzentrale) (e) 7,500
7,500
Louisville & Jefferson County Reg. Arpt. Auth. Sys. Rev., VRDN:
Series 1996 A, 3.75%, LOC Nat'l. City Bank, Kentucky (e) 11,700
11,700
3.75%, LOC Nat'l. City Bank of Kentucky (e) 5,000 5,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
KENTUCKY - CONTINUED
Louisville Arpt. Lease Rev. Series 1989 B, 3.70%,
LOC Nat'l. City Bank of Kentucky, VRDN (e) $ 11,900 $ 11,900
Walton City Ind. Dev. Board (Clarion Mfg. Corp. of America)
3.80%, LOC Fifth Third Bank, Cincinnati, VRDN (e) 1,975 1,975
60,475
LOUISIANA - 1.7%
Caddo Parish Ind. Dev. Bonds Board Exempt Facs. Rev.
(Atlas Project) Series 1996 A, 3.80%,
LOC ABN-AMRO Bank, NV, VRDN (e) 14,500 14,500
Lincoln Parish (Williamette Inds., Inc. Proj.) VRDN:
Series 1995, 3.70%, LOC Deutschebank, Germany (e) 11,500 11,500
Series 1996, 3.70%, LOC Deutschebank, Germany (e) 3,500 3,500
Louisiana Pub. Fac. Auth. Hosp. Rev. Bonds
(Our Lady of the Lake Med. Ctr.):
Series 1985, 3.85% 11/7/97 (FSA Insured)
(BPA Commerzbank, AG) CP mode 5,900 5,900
Series 1985, 3.85% 12/9/97
(BPA Commerzbank, AG) CP mode 1,925 1,925
New Orleans Aviation Board Series 1997 A, 3.75%
(Liquidity Facility Credit Suisse First Boston)
(MBIA Insured) VRDN (e) 12,600 12,600
Plaquemines Parish Envir. Rev. Rfdg. (BP Exploration & Oil, Inc.)
Series 1995, 4.25%, VRDN (e) 2,800 2,800
South Louisiana Port Commission Port Facs. Rev.
(Holnam, Inc. Proj.) 3.75%,
LOC ABN-AMRO Bank, NV, VRDN (e) 2,600 2,600
West Baton Rouge Parish Ind. Dist. #3 Rev.
(Dow Chemical Co. Proj.):
Rfdg. Bonds Series 1991, 3.70% 12/11/97, CP mode 6,600 6,600
VRDN:
Series 1993, 4.30% (e) 9,000 9,000
Series 1995, 4.30% (e) 500 500
71,425
MAINE - 0.2%
Maine State Hsg. Auth. Mtg. Purchase Participating VRDN,
Series 1997 V, 3.85% (Liquidity Facility Caisse des
Depots Consigns) (e)(f) 4,000 4,000
Maine State Hsg. Auth. Multi-Family Dev. Rev.
(Park Village Apts. Proj.) 3.80%,
LOC Gen. Elec. Cap. Corp., VRDN (e) 3,600 3,600
Eliot School Admin. Dist. #35 BAN, 4.25% 11/12/97 1,940 1,940
9,540
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
MARYLAND - 1.7%
Baltimore Participating VRDN, Series SGA-20, 3.75%
(Liquidity Facility Societe Generale, France) (f) $ 14,900 $ 14,900
Howard County Econ. Dev. Rev. (Pace, Inc. Proj.) 3.80%,
LOC Nationsbank Corp., VRDN (e) 2,000 2,000
Maryland Dept. of Hsg. & Commty. Dev. Participating VRDN,
Series PT-36, 3.85%
(Liquidity Facility Banque Nationale de Paris) (e)(f) 850 850
Maryland Econ. Dev. Auth. Rev. (Grafco Inds Ltd.) Series 1996,
3.80%, LOC Nationsbank Corp., VRDN (e) 4,000 4,000
Montgomery County Series 1995, 3.85% 12/5/97
(Liquidity Facility Union Bank of Switzerland) CP 22,000 22,000
Montgomery County Gen. Oblig. Multi-Family Hsg. Rev.
Series 1993 I, 3.85% (BPA Sumitomo Bank Ltd., Japan) VRDN 2,600
2,600
Montgomery County Hsg. Opportunities Commission Rev. 1997
Issue I, 3.75%, LOC KeyBank Nat'l. Assoc., VRDN (e) 22,500 22,500
68,850
MASSACHUSETTS - 1.5%
Harvard Univ. Participating VRDN, Series 1996,
3.79% (Liquidity Facility Citibank, NA) (f) 22,000 22,000
Massachusetts Bay Tran. Auth. Participating VRDN, Series SG-25,
3.80% (Liquidity Facility Societe Generale, France) (f) 900 900
Massachusetts Rfdg. Series BTP-258, 3.80%, tender 1/14/98
(Liquidity Facility Bankers Trust Co.) (b)(f) 8,700 8,700
Massachusetts Tpk. Auth. Participating VRDN (f):
Series PT-135, 3.75% (Liquidity Facility Banco Santander, SA) 10,240
10,240
Series 1997 W, 3.80% (Liquidity Facility
Caisse des Depots et Consigns) 13,595 13,595
Massachusetts Tpk. Metro Hwy. Sys.
Participating VRDN, Series PA-181, 3.75%
(Liquidity Facility Merrill Lynch & Co., Inc.) (f) 5,650 5,650
61,085
MICHIGAN - 1.6%
Detroit School Dist. BAN 4.50% 5/1/98 23,500 23,568
Farmington Hills Hosp. Fin. Auth. Rev. (Botsford Hosp.) Series
1991 B, 4.20% (MBIA Insured) (BPA Comerica, Detroit) VRDN 1,800
1,800
Michigan Gen. Oblig. RAN 4.50% 9/18/98 2,500 2,513
Michigan State Bldg. Auth. 3.75% 3/2/98,
LOC Canadian Imperial Bank of Commerce, CP 24,980 24,980
Michigan Hosp. Fin. Auth. Participating VRDN,
Series 1997 X, 3.75% (Liquidity Facility CoreStates Bank) (f) 7,200
7,200
Michigan Trunk Line Fund Participating VRDN, Series SG-87,
3.80% (Liquidity Facility Societe Generale, France) (f) 1,000 1,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
MICHIGAN - CONTINUED
Michigan Strategic Fund Solid Waste Disp. Sys. Rev.
(Great Lakes Recovery) 3.70%, LOC NBD Bank,
Michigan, VRDN (e) $ 1,800 $ 1,800
Michigan Strategic Fund Bonds (Dow Chemical Co. Proj.):
Series 1988, 3.85% 12/9/97, CP mode (e) 3,250 3,250
Series 1988, 3.80% 1/21/98, CP mode (e) 1,150 1,150
67,261
MINNESOTA - 0.5%
Anoka County Bonds (United Pwr. Assoc.) Series 1988 A, 3.80%
1/15/98 (Nat'l. Rural Util. Coop. Fin. Guaranteed) CP mode (e) 1,700
1,700
Duluth Econ. Dev. Auth. Health Care Facs. Participating VRDN (f):
Series 1994 E, 3.80% (Connie Lee Insured) (Liquidity Facility
Norwest Bank NA, Minnesota) 1,575 1,575
Series 1994 F, 3.80% (Connie Lee Insured) (Liquidity
Facility Norwest Bank NA, Minnesota) 1,890 1,890
Hennepin County Rev. Rfdg. Series 1996 C, 3.75%, VRDN (e) 3,400
3,400
Minneapolis-St. Paul Participating VRDN,
Series 1996 G, 3.80% (Liquidity Facility Norwest
Bank NA, Minnesota) (f) 1,310 1,310
Osseo Independent School Dist. #279 Participating VRDN,
Series 1994 H, 3.80% (Liquidity Facility
Norwest Bank NA, Minnesota) (f) 1,325 1,325
Rochester Health Care Facs.:
(Mayo Foundation Proj.) Series 1985 C, 3.85%
(Liquidity Facility Credit Suisse First Boston) VRDN 5,400 5,400
Participating VRDN, Series 1994 K, 3.80%
(Liquidity Facility Norwest Bank, Minnesota, NA) (f) 1,260 1,260
Spring Lake Park Independent School Dist. #16 Participating
VRDN, Series 1996 E, 3.80% (Liquidity Facility
Norwest Bank, Minnesota, NA) (f) 1,175 1,175
19,035
MISSISSIPPI - 0.1%
De Soto County Ind. Dev. Rev. (Flavorite Labs. Proj.) Series 1991 A,
3.70%, LOC First Tennessee Bank NA, Minnesota, VRDN 1,000 1,000
Mississippi Bus. Fin. Corp. (Calgon Carbon Corp.) Series 1997,
3.80%, LOC PNC Bank, NA, VRDN (e) 2,000 2,000
3,000
MISSOURI - 0.1%
Independence Ind. Dev. Auth. (Interlock Realty Co. Proj.) 3.90%,
LOC Star Bank, NA, VRDN (e) 415 415
Missouri Hsg. Dev. Commission Participating VRDN, 3.85%
(Liquidity Facility Merrill Lynch & Co., Inc.) (e)(f) 2,195 2,195
2,610
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
MONTANA - 0.1%
Montana Board of Hsg. Single Family Participating VRDN,
Series PT-87, 3.85% (Liquidity Facility Banco Santander, SA) (e)(f) $
2,400 $ 2,400
NEBRASKA - 0.2%
Lancaster County Leasing Corp. Rfdg. Participating VRDN,
Series ML PT-103, 3.80% (Liquidity Facility Bayerische
Hypotheken-und Wechsel Bank) (f) 1,500 1,500
Nebraska Higher Ed. Sudent Loan Prog. Series 1988 C,
3.75%, LOC Student Loan Marketing Assoc., VRDN (e) 2,300 2,300
Nebraska Single Family Hsg. Participating VRDN,
Series BTP-251, 3.85%
(Liquidity Facility Bankers Trust Co.) (e)(f) 5,220 5,220
9,020
NEVADA - 2.2%
Clark County Participating VRDN, Series SGB-18, 3.75%
(Liquidity Facility Societe Generale, France) (f) 10,000 10,000
Clark County Special Fac. Arpt. Rev. Bonds
(Signature Flight Support Corp. Proj.) Series 1997 A, 3.70%,
tender 12/1/97, LOC Bayerische Landesbank Girozentrale 3,000 3,000
Clark County Ind. Dev. Rev. (Nevada Pwr. Co. Proj.) VRDN:
Series 1995 A, 3.80%, LOC Barclays Bank, PLC (e) 10,250 10,250
Series 1995 B, 3.75%, LOC Societe Generale, France (e) 3,100 3,100
Clark County School Dist. Participating VRDN (f):
Series BTP-192, 3.80% (Liquidity Facility Bankers Trust Co.) 4,850
4,850
Series SG-62, 3.80% (Liquidity Facility Societe Generale, France)
2,600 2,600
Clark County Poll. Cont. Rev. Bonds (Southern California
Edison Co.) Series 1987 A:
3.80% 1/21/98, CP mode (e) 2,100 2,100
3.80% 1/27/98, CP mode (e) 1,000 1,000
Nevada Capital Impt. Participating VRDN, Series BTP-236,
3.80% (Liquidity Facility Bankers Trust Co.) (f) 3,800 3,800
Nevada Hsg. Div., VRDN:
(Oakmont at Flamingo Rd. Proj.) Series 1996 A,
3.70%, LOC ABN-AMRO Bank (e) 1,300 1,300
(Pecos Owens Court Apt. Proj.) Series 1996,
3.70%, LOC Commerzbank, AG (e) 9,500 9,500
Nevada Muni. Bond Bank #49 & 50 Participating VRDN,
3.80% (Liquidity Facility Societe Generale, France) (f) 18,160
18,160
Nevada Muni. Bond Bank #52 Participating VRDN,
Series 1996 A, 3.79% (Liquidity Facility Citibank, NA) (f) 20,200
20,200
89,860
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEW HAMPSHIRE - 2.9%
Cheshire County Gen. Oblig. TAN 3.95% 12/29/97 $ 1,500 $ 1,500
New Hampshire Hsg. Fin. Auth. Multi-Family Hsg. Rev., VRDN:
(Countryside Ltd. Partnership) 3.75%,
LOC General Elec. Cap. Corp. (e) 2,400 2,400
(Fairways Proj.) 3.75%, LOC General Elec. Cap. Corp. (e) 900 900
Rfdg. (Nashua-Oxford Proj.) Series 1990, 3.85%
(Continental Casualty Co. Guaranteed) 16,900 16,900
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev.:
Bonds (New England Pwr. Co.):
Series 1990 A, 3.70% 11/14/97, CP mode (e) 9,000 9,000
Series 1990 A, 3.75% 11/21/97, CP mode (e) 2,100 2,100
Series 1990 A, 3.90% 12/10/97, CP mode (e) 10,500 10,500
Series 1990 A, 3.85% 1/16/98, CP mode (e) 9,700 9,700
Series 1990 A, 3.80% 1/23/98, CP mode (e) 5,900 5,900
Series 1990 A, 3.80% 1/23/98, CP mode (e) 3,800 3,800
Series 1990 A, 3.85% 1/27/98, CP mode (e) 1,650 1,650
Series 1990 A, 3.85% 1/28/98, CP mode (e) 3,000 3,000
Series 1990 B, 3.75% 11/20/97, CP mode 3,500 3,500
(United Illumination Co.) Series 1997 A, 3.70%,
LOC Barclays Bank, PLC, VRDN (e) 47,500 47,500
118,350
NEW JERSEY - 1.5%
New Jersey Participating VRDN, Series 943005,
3.74% (Liquidity Facility Citibank, NA) (f) 9,700 9,700
New Jersey Hsg. & Mtg. Fin. Agcy. Participating VRDN,
Series PT-118, 3.80% (Liquidity Facility Banco Santander, SA) (e)(f)
9,770 9,770
New Jersey Gen. Oblig. Series 1998 A:
3.80% 12/16/97, CP 16,000 16,000
3.80% 1/15/98, CP 26,000 26,000
61,470
NEW MEXICO - 0.8%
Albuquerque Ind. Dev. Rev. (Plastech Corp.) Series 1994 A,
3.95%, LOC First Bank, Minnesota, NA, VRDN (e) 500 500
Dona Ana County Ind. Rev. (Karr Tool & Manufacturing Co.)
Series 1996, 3.90%, LOC Firstar Bank of Milwaukee, NA, VRDN (e) 3,100
3,100
Farmington Poll. Cont. Rev. (Arizona Pub. Svc./Four Corners Proj.)
Series 1994, 4.25%, LOC Union Bank of Switzerland, VRDN (e) 800 800
New Mexico Gen. Oblig. TRAN Series 1997, 4.50% 6/30/98 7,400 7,432
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEW MEXICO - CONTINUED
New Mexico Mtg. Fin. Auth. Single Family Mtg. Prog.:
Participating VRDN, Series PA-118, 3.85%
(Liquidity Facility Merrill Lynch & Co., Inc.) (e)(f) $ 5,080 $ 5,080
Bonds:
Series 1997 D, 3.95%, tender 6/15/98
(FGIC/Capital Market Svcs. Guaranteed) (e) 4,200 4,200
Series 1997-2, 3.90%, tender 10/15/98
(FGIC/Capital Market Svcs. Guaranteed) (e) 5,000 5,000
New Mexico Student Loan Assistance Participating VRDN, Series PT-67,
3.85% (Liquidity Facility Credit Suisse First Boston) (e)(f) 2,120
2,120
Sandoval County Multi-Family Hsg. Rev. Bonds
(Meadowlark Apts. Proj.) Series 1997, 4%, tender 3/1/98
(FGIC/Capital Market Svcs. Guaranteed) (e) 3,000 3,000
31,232
NEW YORK - 2.8%
New York City Gen. Oblig. RAN Series 1988 A, 4.50% 6/30/98 56,760
56,989
New York City Muni. Wtr. Fin. Auth. Series 1, 3.85%, LOC
Canadian Imperial Bank of Commerce, CP 25,000 25,000
New York City Participating VRDN, Series FR-26, 4%
(Liquidity Facility Bank of New York, NA) (f) 700 700
New York Energy Fin. Commission Participating VRDN,
Series 1994 D, 3.74% (Liquidity Facility Citibank, NA) (f) 1,900
1,900
New York Local Gov't. Assistance Corp. Participating
VRDN, Series SG-99, 3.80% (Liquidity Facility
Societe Generale, France) (f) 5,000 5,000
New York Mtg. Agcy. Participating VRDN, Series 1997 J,
3.80% (Liquidity Facility CoreStates Bank) (e)(f) 11,000 11,000
New York Pwr. Auth. 3.80% 12/11/97, CP 4,700 4,700
New York Urban Dev. Corp. Participating VRDN, Series
SG-33, 3.80% (Liquidity Facility Societe Generale, France) (f) 10,850
10,850
116,139
NEW YORK & NEW JERSEY - 0.7%
New York & New Jersey Port Auth. Participating VRDN,
Series 6 (f):
3.80% (Liquidity Facility Societe Generale, France) 16,300 16,300
3.80% (Liquidity Facility Societe Generale, France) (e) 12,800
12,800
29,100
NORTH CAROLINA - 0.5%
Buncombe County Ind. Facs. & Poll. Cont. Fin. Auth., VRDN:
Series 1991, 4%, LOC Bank of Tokyo-Mitsubishi Ltd. (e) 2,700 2,700
(Gold Star Coating) Series 1997, 3.80%, LOC
Comerica Bank, Detroit (e) 3,200 3,200
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NORTH CAROLINA - CONTINUED
North Carolina Eastern Muni. Pwr. Auth. Rev. Bonds
3.80% 11/19/97, LOC Morgan Guaranty Trust Co.,
NY, CP mode $ 4,900 $ 4,900
Raleigh-Durham Arpt. Auth. Spl. Facs. Rev. Rfdg.
(American Airlines, Inc.) Series 1995 B, 4.20%,
LOC Royal Bank of Canada, VRDN 4,700 4,700
Robeson County Ind. Fin. Auth. Rev. (Culp, Inc. Proj.)
3.70%, LOC Wachovia Bank, NA, VRDN (e) 5,400 5,400
Surry Ind. Facs Poll. Cont. Rev. (Intex Corp.)
3.80%, LOC Nationsbank Corp., VRDN (e) 1,100 1,100
22,000
NORTH DAKOTA - 0.0%
Mercer County Solid Waste Disp. Rev. Bonds
(United Pwr. Proj.) 3.80%, tender 12/1/97
(Nat'l. Rural Util. Coop. Fin. Corp. Guaranteed) (e) 1,100 1,100
OHIO - 1.2%
Cleveland City School Dist. Participating VRDN, Series BTP-246,
3.80% (Liquidity Facility Bankers Trust Co.) (f) 4,800 4,800
Dayton Gen. Oblig. BAN 3.80% 12/16/97 3,000 3,001
Elyria Gen. Oblig. BAN 4% 12/4/97 1,000 1,000
Greene County Gen. Oblig. BAN:
Series C, 4.25% 6/4/98 5,000 5,010
Series E, 4.25% 6/4/98 4,380 4,389
Lorain County Independent Living & Hosp. Rev. (Elyria United
Methodist Village) 3.70%, LOC Key Bank Nat'l. Assoc., VRDN 1,820
1,820
Montgomery Pub. Impt. Real Estate Acquisition BAN 4% 12/18/97 3,070
3,071
Ohio Hsg. Fin. Agcy. Multi-Family Hsg. Rev. (Willowlakes Apt. Proj.)
Series A, 3.80%, LOC Bank One, NA, VRDN (e) 1,500 1,500
Ohio Air Quality Bonds (Cleveland Elec. Illumination Co.)
Series 1988 B, 3.75% 11/19/97 (FGIC Insured)
(Liquidity Facility FGIC/Security Purchase, Inc.) CP mode 2,650
2,650
Ohio Wtr. Dev. Auth. Poll. Cont. Rev. Bonds (Duquesne Lt. Co. Proj.):
3.85% 12/11/97, LOC Toronto-Dominion Bank, CP mode (e) 3,000 3,000
3.80% 1/23/98, LOC Toronto-Dominion Bank, CP mode (e) 10,850 10,850
3.80% 1/29/98, LOC Toronto-Dominion Bank, CP mode (e) 3,350 3,350
Richland County Ind. Dev. Rev. (Sabin Robbins Paper Co.)
Series 1997, 3.80%, LOC Fifth Third Bank, Cincinnati, VRDN 1,200
1,200
Scioto County Marine Term. Facs. Rev.
(Norfolk Southern Corp. Proj.) 5.40%, VRDN 3,400 3,400
Stark County (H-P Products, Inc. Proj.) 3.85%,
LOC Key Bank Nat'l. Assoc., VRDN (e) 2,300 2,300
51,341
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
OKLAHOMA - 1.1%
Guymon Utils. Auth. Rev. (Seaboard Co. Proj.) Series 1995,
3.75%, LOC SunTrust Bank, Atlanta, VRDN (e) $ 3,300 $ 3,300
Oklahoma Hsg. Fin. Agcy. Participating VRDN (f):
Series 1996 G, 3.85% (Liquidity Facility
Caisse des Depots et Consigns) (e) 2,300 2,300
Single Family Mtg. Series ML PT-104, 3.85% (Liquidity Facility
Bayerische Hypotheken-und Wechsel Bank) (e) 3,290 3,290
Oklahoma School Dist. RAN Series 1997 A, 4.50% 6/30/98 6,200 6,208
Oklahoma Ind. Auth. Hosp. Rev. Bonds (Deaconess Health
Care Corp. Proj.) Series 1997, 3.97%, tender 1/1/98,
LOC Sumitomo Bank 4,800 4,800
Oklahoma Student Loan Auth. Series 1997 A, 3.75%
(MBIA Insured) (BPA Student Loan Marketing Assoc.) VRDN (e) 17,900
17,900
Tulsa Int'l. Arpt. Participating VRDN (f):
Series 1997 B1, 3.79% (Liquidity Facility Bank of America
Nat'l. Trust & Savings) (e) 4,100 4,100
Series 1997 B2, 3.74% (Liquidity Facility Bank of America
Nat'l. Trust & Savings Bank) 4,400 4,400
46,298
OREGON - 0.7%
Oregon Econ. Dev. Rev., VRDN:
Rfdg. (Georgia Pacific Corp.) Series 1996-177, 3.75%,
LOC Commerzbank, AG 8,500 8,500
(Cascade Steel, Rolling Mills) Series 176,
3.70%, LOC Commerzbank, AG (e) 2,300 2,300
Oregon Board of Higher Ed. Participating VRDN, Series
SGA-29, 3.75% (Liquidity Facility Societe Generale, France) (f)
10,000 10,000
Oregon Gen. Oblig. Veterans Welfare Bonds
Series 1976 C, 4.05%, tender 2/2/98 (e) 3,200 3,200
Oregon Hsg. & Commty. Svc. Dept. Mtg. Rev. Bonds
Series 1997 D, 4.05%, tender 5/14/98 (e) 3,150 3,150
27,150
PENNSYLVANIA - 8.6%
Allegheny County Ind. Dev. Auth. Envir. Impt. Rev. Bonds
(U.S. Steel Corp.) Series 1986, 3.80% 11/13/97,
LOC Dresdner Bank, CP mode 3,100 3,100
Allegheny County Ind. Dev. Auth. Ind. Dev. Rev. (Union Elec.
Steel Co. Proj.) Series 1996 B, 3.80%,
LOC PNC Bank, VRDN 4,116 4,116
Beaver County Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Duquesne Lt. Co., Mansfield Proj.) Series 1990 C,
3.75% 1/27/98, LOC Barclays Bank, PLC, CP mode 4,500 4,500
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
PENNSYLVANIA - CONTINUED
Carbon County Ind. Dev. Auth. Resource Recovery Rev.
Bonds (Panther Creek Partners Proj.):
Series 1990 A, 3.85% 12/11/97,
LOC Nat'l. Westminster Bank, PLC, CP mode (e) $ 4,445 $ 4,445
Series 1990 A, 3.80% 1/23/98,
LOC Nat'l. Westminster Bank, PLC, CP mode (e) 1,000 1,000
Series 1990 A, 3.75% 1/23/98,
LOC Nat'l. Westminster Bank, PLC, CP mode (e) 2,400 2,400
Series 1991 A, 3.85% 12/9/97,
LOC Nat'l. Westminster Bank, PLC, CP mode (e) 2,000 2,000
Series 1991 A, 3.80% 1/23/98,
LOC Nat'l. Westminster Bank, PLC, CP mode (e) 700 700
Dauphin County School Dist. Rev. 3.80% (AMBAC Insured)
(BPA Bank of Nova Scotia, Commerbank, AG) VRDN 21,600 21,600
Dauphin County Hosp. Auth. (All-Health Pooled Fin. Prog.)
Series 1997 A, 3.75% (FSA Insured) (Liquidity Facility
Credit Suisse First Boston) VRDN 18,290 18,290
Delaware County Ind. Dev. Auth. Rev. Bonds
(Philadelphia Elec. Co.) Series 1988 A, 3.80% 12/9/97
(FGIC Insured) (Liquidity Facility FGIC/Security Purchase, Inc.)
CP mode 11,200 11,200
Emmaus Gen. Auth. Local Govt. Rev. Pool Prog. Series 1989,
3.70% (Liquidity Facility Midland Bank PLC) VRDN 2,400 2,400
Montgomery County Ind. Dev. Auth. Rev. Bonds (Peco Energy Co.)
Series 1996 A, 3.80% 12/15/97, LOC Canadian Imperial
Bank of Commerce, CP mode 10,900 10,900
North Lebanon Township Rev. (Grace Commty., Inc. Proj.)
Series 1992 B, 3.85%, LOC CoreStates Bank, VRDN 2,095 2,095
North Pennsylvania Wtr. Auth. Participating VRDN,
Series SG-30, 3.75% (Liquidity Facility Societe
Generale, France) (f) 4,000 4,000
Northampton County Ind. Dev. Auth. (Binney & Smith, Inc. Proj.)
Series 1997 A, 3.85%, LOC First Nat'l.
Bank of Chicago, VRDN (e) 1,900 1,900
Northumberland County Ind. Dev. Auth. Rev.
(Foster Wheeler, Mt. Carmel, Inc. Proj.) VRDN:
Series 1987 A, 3.75%, LOC Union Bank of Switzerland (e) 3,800
3,800
Series 1987 B, 3.75%, LOC Union Bank of Switzerland (e) 1,450
1,450
Pennsylvania Econ. Dev. Fin. Auth. Rev., VRDN:
(Alpha Carb Enterprises) Series 1991 D1, 3.80%,
LOC PNC Bank NA (e) 1,300 1,300
Series 1995 A6, 3.80% LOC PNC Bank NA (e) 1,800 1,800
Series 1996 D5, 3.80%, LOC PNC Bank NA (e) 3,000 3,000
Series 1997 B1, 3.80%, LOC PNC Bank NA (e) 1,700 1,700
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
PENNSYLVANIA - CONTINUED
Pennsylvania Econ. Dev. Fin. Auth. Rev., VRDN: - continued
Series 1997 B6, 3.80%, LOC PNC Bank NA (e) $ 1,200 $ 1,200
Series 1997 B7, 3.80%, LOC PNC Bank NA (e) 1,200 1,200
Series 1997 B8, 3.80%, LOC PNC Bank NA (e) 1,200 1,200
Series 1997 B9, 3.80%, LOC PNC Bank NA (e) 1,400 1,400
Pennsylvania Hsg. Fin. Agcy. Single Family Mtg.
Participating VRDN (f):
Series ML PT-119A, 3.80% (Liquidity Facility
Credit Suisse First Boston) 5,800 5,800
Series ML PT-119B, 3.80% (Liquidity Facility
Credit Suisse First Boston) (b) 3,380 3,380
Pennsylvania Inter-Governmental Coop. Auth.
Participating VRDN (f):
Series SG-16, 3.75% (Liquidity Facility
Societe Generale, France) 4,800 4,800
Series SG-67, 3.80% (Liquidity Faciity
Societe Generale, France) 5,930 5,930
Pennsylvania Higher Ed. Assistance Agcy. Student Loan Rev., VRDN:
Series 1988 A, 3.70%, LOC Student Loan Marketing Assoc. (e) 11,200
11,200
Series 1988 B, 3.70%, LOC Student Loan Marketing Assoc. (e) 10,000
10,000
Series 1988 E, 3.70%, LOC Student Loan Marketing Assoc. (e) 29,500
29,500
Series 1994 A, 3.70%, LOC Student Loan Marketing Assoc. (e) 57,550
57,550
Series 1997 A, 3.75%, LOC Student Loan Marketing Assoc. (e) 8,000
8,000
3.70%, LOC Student Loan Marketing Assoc. (e) 19,500 19,500
Pennsylvania Higher Ed. Fac. Auth. Participating VRDN,
Series 1994 A, 3.65% (Liquidity Facility
Morgan Guaranty Trust Co., NY) (f) 3,000 3,000
Pennsylvania Participating VRDN, Series 1994 B,
3.79% (Liquidity Facility Citibank, NA) (f) 27,400 27,400
Philadelphia Gen. Oblig. TRAN Series 1997-98 A,
4.50% 6/30/98 17,800 17,856
Philadelphia Arpt. Sys. Participating VRDN,
Series 1997, 3.75% (Liquidity Facility Bank of
New York, NA) (e)(f) 14,800 14,800
Philadelphia School Dist. Participating VRDN, Series 1997 W,
3.75% (Liquidity Facility CoreStates Bank) (f) 5,450 5,450
Philadelphia RAN (Southwark Plaza Proj.) Series 1996,
3.85% 12/30/97, LOC FGIC/Capital Market Svcs. (e) 3,600 3,600
Pittsburgh Participating VRDN, Series SG-71,
3.75% (Liquidity Facility Societe Generale, France) (f) 4,700 4,700
Venango Ind. Dev. Auth. Resource Recovery Rev. Bonds
(Scrubgrass Proj.):
Series 1990 A, 3.85% 12/10/97,
LOC Nat'l. Westminster Bank, PLC, CP mode (e) 1,800 1,800
Series 1990 B, 3.80% 1/29/98,
LOC Nat'l. Westminster Bank, PLC, CP mode (e) 3,300 3,300
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
PENNSYLVANIA - CONTINUED
Westmoreland County Ind. Dev. Auth. Rev. (Nat'l. Waste &
Energy Corp.) Series 1993, 3.80%,
LOC Fleet Bank, NA, VRDN (e) $ 3,300 $ 3,300
353,562
RHODE ISLAND - 0.3%
Cumberland Gen. Oblig. BAN 4% 11/26/97 2,200 2,199
Rhode Island Hsg. & Mtg. Fin. Corp. Participating VRDN,
Series 1997 R, 3.85% (Liquidity Facility Caisse des Depots et
Consigns) (e)(f) 6,260 6,260
Rhode Island Ind. Fac. Corp. Ind. Dev. Rev. (NFA Corp Proj.)
4%, LOC BankBoston, VRDN (e) 1,900 1,900
10,359
SOUTH CAROLINA - 1.5%
Kershaw County Ind. Dev. Rev. Rfdg. (New South Proj.)
Series 1992, 3.70%, LOC Nationsbank Corp., VRDN 7,000 7,000
Lancaster County Ind. Dev. Rev. (Synteen Tech., Inc. Proj.)
Series 1997, 3.85%, LOC Nationsbank Corp., VRDN (e) 2,500 2,500
Marlboro County Ind. Dev. Rev. (Reliance Trading Corp.)
Series 1997, 3.90%, LOC LaSalle Nat'l. Bank,
Chicago, Illinois, VRDN (e) 1,250 1,250
Marlboro County Solid Waste Disp. Fac.
(Willamette Ind., Inc. Proj.) Series 1995, 3.70%,
LOC Deutsche Bank, AG, VRDN (e) 11,300 11,300
South Carolina Jobs Econ. Dev. Auth., VRDN:
(Chambers Richland County Landfill) 3.75%,
LOC SunTrust Bank, Atlanta (e) 2,000 2,000
(The Methodist Home Proj.) Series 1994, 3.70%,
LOC Nationsbank Corp. 7,200 7,200
(Mita South Carolina, Inc. Proj.) Series 1997, 3.85%,
LOC Bank of Tokyo-Mitsubishi Ltd. (e) 3,500 3,500
(Mohawk Industries, Inc.):
3.85%, LOC First Union Nat'l. Bank, Georgia (e) 1,500 1,500
3.85%, LOC First Union Nat'l. Bank, Georgia (e) 3,900 3,900
Series 1997 B, 3.85%, LOC First Union Nat'l. Bank, Georgia (e)
1,800 1,800
South Carolina Cap. Impt. Participating VRDN, Series BT-27,
3.85% (Liquidity Facility Automatic Data Processing, Inc.) (f) 2,193
2,193
South Carolina Port Auth. 3.80%,
LOC Wachovia Bank, NA, VRDN (e) 1,000 1,000
South Carolina Pub. Svc. Auth.:
Participating VRDN, Series 1996, 3.74%
(Liquidity Facility Citibank, NA) (f) 6,300 6,300
3.85% 11/20/97, CP 5,000 5,000
Williamsburge County Ind. Dev. Auth. (Peddinghaus Corp.)
3.90%, LOC LaSalle Nat'l. Bank, Chicago, Illinois, VRDN (e) 3,500
3,500
59,943
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
SOUTH DAKOTA - 1.8%
South Dakota Hsg. Dev. Auth.:
Mtg. Bonds:
Series 1996 E, 3.75%, tender 11/13/97 (e) $ 16,000 $ 16,000
Series G, 3.95%, tender 8/13/98 (e) 6,600 6,600
Participating VRDN (f):
Series PT-85, 3.85% (Liquidity Facility Rabobank Nederland) (e)
16,170 16,170
Series PA-119, 3.85% (Liquidity Facility Merrill Lynch & Co.) (e)
7,500 7,500
Series 1997 E, 3.85%, LOC Westdeutsche
Landesbank Girozentrale, VRDN (e) 27,015 27,015
73,285
TENNESSEE - 3.4%
Chattanooga Ind. Dev. Board, VRDN:
(Burner Systems Int'l.) 3.80%, LOC Nationsbank Corp. (e) 2,000 2,000
(Chattanooga Bakery, Inc.) 3.75%, LOC Suntrust Bank, Nashville (e)
1,750 1,750
Cookeville Ind. Dev. Board Ind. Dev. Rev. (Delbar Products, Inc.
Proj.) 3.80%, LOC PNC Bank, VRDN (e) 700 700
Cumberland County Ind. Dev. Board Ind. Dev. Rev.
(Delbar Products, Inc. Proj.)
3.80%, LOC PNC Bank, NA, VRDN (e) 1,500 1,500
Dickson County Ind. Dev. Board Ind. Dev. Rev.
(Tennessee Bun Co.) Series 1996, 3.80%, LOC PNC Bank,
Ohio, VRDN (e) 2,500 2,500
Fayetteville & Lincoln County Ind. Dev. Rev.
(V.A.W. of America, Inc.) Series 1997, 3.85%,
LOC Nationsbank Corp., VRDN (e) 1,000 1,000
Jackson Ind. Dev. Board Rev. (Florida Steel Corp. Proj.)
Series 1995, 3.80%, LOC Nationsbank Corp., VRDN (e) 3,000 3,000
Knox County Ind. Dev. Board (Southern Foundry
Supply, Inc. Proj.) 3.75%, LOC SunTrust Bank,
Nashville, NA, VRDN 2,000 2,000
Memphis Elec. Sys. Participating VRDN, Series 1992,
3.85% (Liquidity Facility Automatic Data Processing, Inc.) (f) 2,165
2,165
Memphis-Shelby County Arpt. Auth. Rev., VRDN:
Series 1996 A, 3.75%, LOC First Union Nat'l. Bank (NC) (e) 1,000
1,000
Series 1996 B-1, 3.75%, LOC First Union Nat'l.
Bank (NC) (e) 27,700 27,700
Series 1996 B-2, 3.75%, LOC First Union Nat'l.
Bank (NC) (e) 18,700 18,700
Series 1996 B-3, 3.75%, LOC First Union Nat'l.
Bank (NC) (e) 2,400 2,400
Series 1996 B-4, 3.70%, LOC First Union Nat'l.
Bank (NC) (e) 24,000 24,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TENNESSEE - CONTINUED
Memphis-Shelby County Poll. Cont. Rev. (Birmingham Steel)
Series 1996, 3.80%, LOC PNC Bank,
Kentucky, VRDN (e) $ 4,300 $ 4,300
Morristown Ind. Rev. (Tuff Torq Corp. Proj.) Series 1989,
3.75%, LOC Bank of Tokyo-Mitsubishi Ltd., VRDN (e) 1,630 1,630
Nashville & Davidson County Ind. Dev. Board Rev.
(ChimneyTop II Oxford Assoc.) Series 1984 A,
3.75%, LOC Bank of America Nat'l. Trust & Savings, VRDN 800 800
Nashville & Davidson County Participating VRDN (f):
3.74% (Liquidity Facility Citibank, NA) 10,400 10,400
Series SGA-11, 3.75% (Liquidity Facility Societe Generale, France)
4,100 4,100
Nashville Metro. Arpt. Auth. Spl. Facs. Rev.
(American Airlines Proj.) Series A, 4.05%,
LOC Credit Suisse First Boston, VRDN 1,900 1,900
Oak Ridge Ind. Dev. Board Solid Waste Fac. Rev.
(Environmental L.P.) Series 1996, 3.75%,
LOC SunTrust Bank, Atlanta, VRDN (e) 1,800 1,800
Shelby County Participating VRDN, Series 1996,
3.79% (Liquidity Facility Citibank, NA) (f) 13,500 13,500
South Pittsburg Ind. Dev. Board (Lodge Manufacturing Proj.)
3.75%, LOC SunTrust Bank, Nashville, NA, VRDN (e) 2,000 2,000
Sullivan County Ind. Dev. Board Rev. Rfdg., VRDN:
(BC Realty Proj.) Series 1995, 3.70%,
LOC First Tennessee Bank, NA 3,100 3,100
(Executive Park Realty Proj.) Series 1995, 3.70%,
LOC First Tennessee Bank, NA 2,000 2,000
Tennessee Hsg. Dev. Agcy. Participating VRDN, Series PT-59B,
3.85% (Liquidity Facility Credit Suisse First Boston) (e)(f) 1,000
1,000
Volunteer State Student Funding Corp. Student Loan Rev.
Series 1988 A-1, 3.70%, LOC Sumitomo Bank, VRDN (e) 2,800 2,800
Williamson County Ind. Dev. Board First Mtg. Rev.
(Telco, Inc.) Series 1996, 3.85%,
LOC Nationsbank Corp., VRDN (e) 2,400 2,400
142,145
TEXAS - 16.0%
Austin Hsg. Fin. Corp. Multi-Family Hsg. Rev.
(Riverchase Proj.) Series 1985 A, 4.075%,
LOC Household Fin. Corp., VRDN 1,600 1,600
Austin Higher Ed. Auth. (St. Edward's Univ.) Series 1995,
3.70%, LOC Nationsbank Corp., VRDN 8,200 8,200
Austin Combined Util. Sys. Series A, 3.75% 1/15/98,
LOC Morgan Guaranty Trust Co., NY, CP 8,000 8,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
Brazos River Auth. Poll. Cont. Rev. Rfdg. (Texas Utils. Elec. Co.):
Bonds:
Series 1994 A, 3.80% 1/16/98, LOC Canadian
Imperial Bank of Commerce, CP mode (e) $ 1,000 $ 1,000
Series 1994 A, 3.80% 1/21/98, LOC Canadian
Imperial Bank of Commerce, CP mode (e) 4,200 4,200
Series 1994 A, 3.80% 1/22/98, LOC Canadian
Imperial Bank of Commerce, CP mode (e) 1,700 1,700
VRDN:
3.75% (MBIA Insured) (Liquidity Facility Bank of
New York, NA) (e) 28,765 28,765
Series 1996 A, 4.25% (AMBAC Insured)
(BPA Bank of New York, NA) (e) 1,000 1,000
Series 1996 B, 4% (AMBAC Insured) (BPA Bank of
New York, NA) (e) 2,200 2,200
Brazos River Hbr. Ind. Dev. Corp. Bonds (Dow Chemical Co.):
Series 1986, 3.80% 12/5/97, CP mode 2,140 2,140
Series 1986, 3.85% 12/12/97, CP mode 1,460 1,460
Brazos River Hbr. Navigation Dist. of Brazoria County Bonds
(Dow Chemical Co.):
Series1988, 3.75% 11/21/97, CP mode (e) 5,000 5,000
Series1988, 3.80% 12/5/97, CP mode (e) 13,000 13,000
Series1988, 3.80% 1/16/98, CP mode (e) 5,300 5,300
Series1988, 3.80% 1/21/98, CP mode (e) 3,170 3,170
Series 1991, 3.85% 11/17/97, CP mode 8,200 8,200
Series 1992, 3.80% 12/5/97, CP mode (e) 9,600 9,600
Series 1992, 3.85% 12/9/97, CP mode (e) 4,660 4,660
Series 1992, 3.80% 1/16/98, CP mode (e) 4,400 4,400
Series 1992, 3.80% 1/22/98, CP mode (e) 2,400 2,400
Series 1992, 3.80% 1/26/98, CP mode (e) 8,490 8,490
Series 1992 A, 4.30%, VRDN (e) 1,500 1,500
Series 1997, 4.30%, VRDN (e) 2,400 2,400
Brownsville Ind. Dev. Corp. Rev. Rfdg. (Rich-Seapak Corp. Proj.)
Series 1997, 3.75%, LOC SunTrust Bank, Atlanta, VRDN (e) 1,500 1,500
Colorado River Muni. Wtr. Dist. Participating VRDN,
Series PA-187, 3.80% (MBIA Insured)
(Liquidity Facility Merrill Lynch & Co., Inc.) (f) 10,865 10,865
Dallas-Fort Worth Reg. Arpt. Participating VRDN (f):
Series SGB-5, 3.75% (Liquidity Facility Societe Generale, France)
5,000 5,000
Series 1995, 3.79% (Liquidity Facility Citibank, NA) 23,400 23,400
De Soto Independent School Dist. Participating VRDN,
Series SGA-25, 3.75% (Liquidity Facility Societe Generale, France) (f)
7,230 7,230
Denton Util. Sys. Participating VRDN, Series SGA-32,
3.75% (Liquidity Facility Societe Generale, France) (f) 5,230 5,230
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
El Paso Ind. Dev. Auth. (Camden Wire Co., Inc.) Series 1996,
3.85%, LOC Nationsbank Corp., VRDN (e) $ 2,300 $ 2,300
Galveston Ind. Dev. Corp. Rev. Rfdg. (Mitchell Interests)
3.75%, LOC Bank One, Texas, VRDN (e) 5,000 5,000
Georgetown Ind. Dev. Auth. Rev. (Chatsworth Products, Inc.)
Series 1996, 3.80%, LOC Bank One, Texas, VRDN (e) 4,040 4,040
Grand Prairie Ind. Dev. Auth. Rev. (Precision/API Ketema Proj.)
Series 1996, 4%, LOC Marine Midland Bank, NA, VRDN (e) 940 940
Greater East Texas Higher Ed. Auth. Student Loan
Rev. Rfdg. Bonds:
Series 1992 A, 3.90%, tender 9/1/98,
LOC Student Loan Marketing Assoc. 7,500 7,500
Series 1992 B, 3.95%, tender 9/1/98,
LOC Student Loan Marketing Assoc. (e) 1,800 1,800
Series 1993 B, 4.05%, tender 6/1/98,
LOC Student Loan Marketing Assoc. (e) 1,500 1,500
Greater Texas Student Loan Corp. Rev. Rfdg. Bonds
Series 1996 A, 3.70%, tender 3/1/98, LOC Student
Loan Marketing Assoc. (e) 11,400 11,400
Gulf Coast Ind. Dev. Auth., VRDN:
(Amoco Oil Proj.):
Series 1993, 4.25% (e) 10,500 10,500
Series 1997, 4.25% (e) 2,000 2,000
(Mueller Flow Tech., Inc. Proj.) Series 1997, 3.90%,
LOC NBD Bank, NA (e) 5,000 5,000
(Valero Manufacturing Co.) Series 1997, 3.75%,
LOC Bank of Montreal, Canada (e) 16,000 16,000
Solid Waste Disp. Rev. (Citgo Petroleum) 4.30%,
LOC Wachovia Bank, NA (e) 5,800 5,800
Gulf Coast Waste Disp. Auth. Poll. Cont. Rev.
(Exxon Asset Funding Corp./Baytown Chemical Co.)
Series 1995, 4.20% (Exxon Corp. Guaranteed) VRDN 2,200 2,200
Harlingen Ind. Dev. Auth. (Gibbs-Texas Die Casting) 3.85%,
LOC Harris Trust & Savings Bank, Chicago, VRDN (e) 6,000 6,000
Harris County Health Facs. Dev. Corp. (St. Luke's Hosp.)
Series B, 4.05%, VRDN 12,500 12,500
Harris County Hsg. Fin. Corp. (The Mills Apts. Proj.) 3.75%
(FNMA Guaranteed) VRDN (e) 10,100 10,100
Harris County Multi-Family Hsg. Auth.
(Trails of Ashford Apt.) Series 1997, 3.75%
(FNMA Guaranteed) VRDN 5,850 5,850
Houston Arpt. Sys. Series 1993 A, 3.70% 11/20/97, LOC
Canadian Imperial Bank of Commerce,
Commerzbank, AG, CP (e) 3,500 3,500
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
Houston Gen. Oblig. Series B, 3.80% 12/17/97 (Liquidity Facility
Morgan Guaranty Trust Co, NY, Union Bank of Switzerland) CP $ 5,500 $
5,500
Houston Gen. Oblig. TRAN:
Series 1997, 4.50% 6/30/98 10,000 10,040
Series 1997 A, 4.118% 4/15/98 (b) 2,400 2,400
Houston Wtr. & Swr. Sys.:
Participating VRDN, Series SGB-24, 3.75%
(Liquidity Facility Societe Generale, France) (f) 4,700 4,700
Series A, CP:
3.80% 2/12/98 (Liquidity Facility Credit Suisse First Boston,
Westdeutsche Landesbank Girozentrale) 6,700 6,700
3.85% 1/15/98 (Liquidity Facility Credit Suisse First Boston,
Westdeutsche Landesbank Girozentrale) 20,000 20,000
Hurst Euless Bedford Ind. School Dist. Unltd. Tax Rfdg.
Participating VRDN, Series ML SG-98, 3.80%
(Liquidity Facility Societe Generale, France) (f) 5,270 5,270
Lower Colorado River Auth. Series C, 3.80% 12/15/97
(Liquidity Facility Morgan Guaranty Trust Co., NY) CP 1,500 1,500
Matagorda County Navigation Dist. #1 Participating VRDN,
Series 1989 D, 3.85% (FGIC Insured) (Liquidity Facility
Caisse des Depots et Consigns) (e)(f) 5,330 5,330
McKinney Ind. Dev. Corp. Ind. Dev. Rev. (Delta Daily Foods, Inc.
Proj.) Series 1994, 3.75%, LOC ABN-AMRO Bank, VRDN (e) 7,500 7,500
Mineral Wells Ind. Dev. Corp. (Electronic Interconnects)
Series 1997, 3.70%, LOC NBD Bank, Detroit, VRDN (e) 5,100 5,100
Nacogdoches Ind. Dev. Auth. Rev. Rfdg.
(La Quinta Motor Inns, Inc. Proj.) 3.70%, LOC
Nationsbank Corp., VRDN 2,035 2,035
North Texas Higher Ed. Auth. Student Loan Rev., VRDN:
Series 1990, 3.70%, LOC Student Loan Marketing Assoc. (e) 4,600
4,600
Series 1991 F, 3.70% (AMBAC Insured)
(BPA Student Loan Marketing Assoc.) (e) 5,600 5,600
Series 1993 A, 3.70%, LOC Student Loan Marketing Assoc. (e) 5,500
5,500
Series A, 3.70% (AMBAC Insured) (Liquidity Facility
Student Loan Marketing Assoc.) (e) 3,900 3,900
Rfdg. Series 1990, 3.70%, LOC Student Loan Marketing Assoc. (e)
3,400 3,400
Panhandle Plains Higher Ed. Auth. Student Loan Rev.
Series 1992 A, 3.70%, LOC Student Loan
Marketing Assoc., VRDN (e) 7,500 7,500
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
Port Arthur Navigational Dist. Poll. Cont. Rev.
(Star Enterprise Proj.) Series 1994, 3.75%, LOC
Bank of Montreal, VRDN (e) $ 24,100 $ 24,100
Port Corpus Christi Ind. Dev. Corp., VRDN:
(Coastal Refining & Marketing Corp.) Series 1997,
3.75%, LOC Banque Nat'l. de Paris, France (e) 18,000 18,000
Rfdg. (Valero Refining & Marketing Co.) 3.80%,
LOC Bank of Montreal (e) 1,200 1,200
Port Corpus Christi Waste Rev. (Coastal Refining & Marketing
Corp.) 3.75%, LOC Banque Nationale de Paris, VRDN (e) 4,900 4,900
San Antonio Elec. & Gas Participating VRDN,
Series SG-105, 3.80% (Liquidity Facility
Societe Generale, France) (f) 21,800 21,800
San Antonio Elec. & Gas Sys. Series A, 3.80% 11/14/97, CP 4,400
4,400
San Antonio Gen. Oblig. (Wellington Place Proj.) 3.75%
(FNMA Guaranteed) VRDN (e) 3,700 3,700
San Antonio Hotel Occupancy Tax Participating VRDN,
Series SG-51, 3.80% (Liquidity Facility Societe
Generale, France) (f) 4,150 4,150
San Antonio Hsg. Fin. Auth. Multi-Family Hsg., VRDN:
(Cape Cod Apts.) Series 1990, 3.75% (FNMA Guaranteed) (e) 4,800
4,800
(Eagle's Nest Apt. Proj.) 3.75% (FNMA Guaranteed) (e) 1,100 1,100
(Harbor Care Ambassador) 3.75% (FNMA Guaranteed) (e) 3,700 3,700
(La Jolla Apts.) 3.75% (FNMA Guaranteed) (e) 8,000 8,000
(Mesa Ridge Apts. Proj.) 3.75%,
LOC Landesbank Hessen-Thuringen (e) 1,900 1,900
San Antonio Wtr. Sys. Participating VRDN, Series 1996,
3.74% (Liquidity Facility Citibank, NA) (f) 5,800 5,800
San Antonio Wtr. Sys. Series 1995, 3.85% 12/11/97
(Liquidity Facility Westdeutsche Landesbank Girozentrale) CP 2,000
2,000
South Texas Higher Ed. Auth. Student Loan Rev.
Series 1997, 3.70% (MBIA Insured)
(BPA Student Loan Marketing Assoc.) VRDN (e) 34,900 34,900
Terrel Dev. Corp Ind. Dev. Auth. Rev. (Consolidated Sys.)
3.75%, LOC Wachovia Bank, NA, VRDN (e) 4,500 4,500
Texas A&M Univ. Sys. Participating VRDN, Series SGA-21,
3.75% (Liquidity Facility Societe Generale, France) (f) 7,500 7,500
Texas Assoc. of School Boards TAN Series 1997,
4.30% 8/31/98 10,770 10,770
Texas Gen. Oblig. TRAN 4.75% 8/31/98 18,900 19,036
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
Texas Dept. of Hsg. & Commty. Affairs Participating VRDN (f):
Series PT-9, 3.80% (Liquidity Facility Commerzbank, AG) $ 2,875 $
2,875
Series PT-93, 3.80% (Liquidity Facility Bayerische
Hypotheken-und Wechsel Bank) 5,915 5,915
Texas Pub. Fin. Auth. Participating VRDN, Series 1996-CB2,
3.70% (Liquidity Facility Chase Manhattan Bank) (f) 4,970 4,970
Texas Tpk. Auth. Dallas North Tollway Participating
VRDN, Series PA-189, 3.80% (Liquidity Facility
Merrill Lynch & Co., Inc.) (f) 12,595 12,595
Texas Wtr. Dev. Board Participating VRDN, Seris SGA-23,
3.75% (Liquidity Facility Societe Generale, France) (f) 5,600 5,600
Travis County Hsg. Fin. Corp. Multi-Family Hsg. Rev., VRDN:
(Aspen Hills Project) 3.75 (FNMA Guaranteed) (e) 6,800 6,800
(Primecrest Ltd. Proj.):
Series 1990 A, 3.75%, LOC Bank of America, Illinois (e) 3,400 3,400
Series 1990 B, 3.75%, LOC Bank of America, Illinois (e) 2,400
2,400
Tuloso Midway Independent School Dist. Adj. Rate TRAN
4.064% 8/31/98 (b) 1,750 1,750
Univ. of Texas Sys. Permanent Univ. Fund Bonds Series A,
3.85% 12/9/97 (Liquidity Facility State of Texas) CP mode 10,000
10,000
Univ. of Texas Fin. Sys. Rev. Series A, CP:
3.80% 12/5/97 3,813 3,813
3.85% 12/12/97 8,500 8,500
White Settlement Ind. Dev. Corp. (Special Proj.
Manufacturing Co.) 3.70%, LOC Texas Commerce Bank,
NA, Houston, VRDN (e) 1,800 1,800
658,789
UTAH - 0.7%
Intermountain Pwr. Auth. Participating VRDN,
3.79% (Liquidity Facility Citibank New York NA) (f) 7,600 7,600
Timpanogos Spl. Svc. Dist. Participating VRDN, Series SG-83,
3.80% (Liquidity Facility Societe Generale, France) (f) 2,100 2,100
Toole City Ind. Dev. Rev. (Nelson & Sons Proj.) Series 1997,
3.85%, LOC Key Bank Nat'l. Assoc., VRDN (e) 1,500 1,500
Utah Board of Regents Student Loan Rev. 3.70%
(AMBAC Insured) (BPA Barclays Bank PLC) VRDN 13,100 13,100
Utah Hsg. Fin. Agcy. Participating VRDN, Series PT-84B, 3.85%
(Liquidity Facility Rabobank Nederland, NV) (e)(f) 870 870
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
UTAH - CONTINUED
Utah Hsg. Fin. Agcy. Single Family Mtg. Rev., VRDN:
Series 1996-4, 3.70% (Liquidity Facility
Westdeutsche Landesbank Girozentrale) $ 625 $ 625
Series 1996-5, 3.80% (Westdeutsche Landesbank Girozentrale
Guaranteed) (e) 2,295 2,295
28,090
VERMONT - 0.1%
Vermont Econ. Dev. Auth. (Huber & Suhner Proj.) 3.85%,
LOC Key Bank Nat'l. Assoc., VRDN 2,370 2,370
VIRGINIA - 1.4%
Bedford Ind. Dev. Auth. (Nekoosa Packaging Corp.) 3.75%,
LOC Canadian Imperial Bank of Commerce, VRDN (e) 1,500 1,500
Botetourt County Ind. Dev. Auth. (Virginia Forge Co. Proj.)
Series 1996, 3.75%, LOC Harris Trust & Savings Bank,
Chicago, VRDN (e) 1,200 1,200
Chesapeake Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Virginia Elec. Pwr. Co.):
Series 1985, 3.75% 11/13/97, CP mode 1,800 1,800
Series 1985, 3.85% 12/9/97, CP mode 2,000 2,000
Chesterfield County Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Virginia Elec. Pwr. Co.):
Series 1987 A, 3.80% 11/19/97, CP mode 2,000 2,000
Series 1987 A, 3.80% 2/12/98, CP mode 3,400 3,400
Greensville County (Beach Mold & Tool) 3.80%, LOC
Nat'l. City Bank, Kentucky, VRDN (e) 1,800 1,800
Hopewell Ind. Dev. Auth. Rev. (Hadson Pwr.
13-Hopewell Proj.) Series 1990 A, 4.25%,
LOC Credit Suisse First Boston, VRDN (e) 4,900 4,900
King George County Ind. Dev. Auth. Rev.
(Birchwood Pwr. Partners) Series 1997, 4.25%, LOC
Credit Suisse First Boston, VRDN (e) 600 600
Louisa Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Virginia Elec. Pwr. Co.);
Series 1985, 3.85% 11/19/97
(BPA Bank of New York, NA) CP mode 10,800 10,800
Series 1987, 3.90% 12/5/97, CP mode 1,300 1,300
Series 1987, 3.80% 12/15/97, CP mode 5,100 5,100
Mecklenburg County Ind. Dev. Auth. Rev.
(American Bldgs. Co. Proj.) 3.85%, LOC
LaSalle Nat'l. Bank, Chicago, Illinois, VRDN (e) 1,320 1,320
Peninsula Ports Auth. of Virginia (Zeigler Coal Proj.)
Series 1997, 4.25%, LOC Bank of America Nat'l.
Trust & Savings, VRDN (e) 3,500 3,500
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
VIRGINIA - CONTINUED
Prince William County Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Virginia Elec. Pwr. Co.):
3.90% 1/15/98, CP mode $ 3,000 $ 3,000
3.80% 2/12/98, CP mode 1,800 1,800
Southampton County Ind. Dev. Auth. Ind. Rev.
(Hadson Pwr. 11-Southampton Proj.) Series 1990 A, 4.25%,
LOC Credit Suisse First Boston, VRDN (e) 3,000 3,000
York County Ind. Dev. Auth. (Philip Morris Co. Proj.)
Series 1991, 3.70%, VRDN 4,000 4,000
York County Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Virginia Elec. Pwr. Co.) Series 1985,
3.80% 12/15/97, CP mode 5,200 5,200
58,220
WASHINGTON - 3.9%
Kent Participating VRDN, Series SGA-27,
3.75% (Liquidity Facility Societe Generale, France) (f) 5,070 5,070
Klickitat County Pub. Corp. Ind. Dev. Rev. (Rabanco Reg.
Landfill Proj.) Series 1990, 3.80%, LOC Bank of America, VRDN (e)
6,800 6,800
Pierce County Econ. Dev. Corp. Rev. (Pacific LLC Proj.) 4%,
LOC Wells Fargo Bank, NA, VRDN (e) 3,000 3,000
Washington Econ. Dev. Fin. Auth. Rev., VRDN:
(Ferry Brothers, Inc. Proj.) 3.80%,
LOC Key Bank Nat'l. Assoc. (e) 5,000 5,000
(Hunter Douglas Proj.) Series 1997 A, 3.75%,
LOC ABN-AMRO Bank (e) 2,200 2,200
Washington Hsg. Fin. Commision. Single Family Mtg.
Participating VRDN, Series PT-86, 3.85% (Liquidity Facility
Merrill Lynch & Co., Inc.) (e)(f) 3,980 3,980
Washington Hsg. Fin. Commission Multi-Family Rev., VRDN:
(Eagle Pointe Apts.) Series 1996 A, 3.75% (FSA Insured)
(Liquidity Facility Wells Fargo, NA) (e) 2,840 2,840
(Winterhill Apt. Proj.) Series 1996 A, 3.75% (FSA Insured)
(Liquidity Facility Wells Fargo Bank Bank, NA (e) 4,300 4,300
Washington Hsg. Fin. Auth. Participating VRDN,
Series 1997 D, 3.85% (Liquidity Facility
CoreStates Bank) (e)(f) 7,500 7,500
Washington Pub. Pwr. Supply Sys. Participating VRDN (f):
Series 1994 B, 3.79% (Liquidity Facility Citibank, NA) 20,600 20,600
Series BTP-61, 3.95% (Liquidity Facility Automatic Data
Processing, Inc.) 2,335 2,335
Washington Participating VRDN (f):
Series 1993 B, 3.79% (Liquidity Facility Citibank, NA) 13,300 13,300
Series 1996, 3.79% (Liquidity Facility Citibank, NA) 4,000 4,000
Series BTP-195, 3.80% (Liquidity Facility Bankers Trust Co.) 5,300
5,300
Series SGB-9, 3.75% (Liquidity Facility Societe Generale, France)
4,100 4,100
Series SGB-11, 3.75% (Liquidity Facility Societe Generale, France)
3,700 3,700
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
WASHINGTON - CONTINUED
Washington Participating VRDN (f): - continued
Series SGB-35, 3.75% (Liquidity Facility Societe Generale, France) $
12,500 $ 12,500
Series SGB-36, 3.75% (Liquidity Facility Societe Generale, France)
11,000 11,000
Series SGB-37, 3.80% (Liquidity Facility Societe Generale, France)
11,080 11,080
Series SGB-13, 3.75% (Liquidity Facility Societe Generale, France)
10,000 10,000
Series BTP-101, 3.80% (BPA Bankers Trust Co.) 12,065 12,065
Series BTP-114, 3.80% (BPA Bankers Trust Co.) 9,005 9,005
159,675
WEST VIRGINIA - 1.7%
Grant County Solid Waste Disp. Rev. Bonds (Virginia Elec.
Pwr. Co.) Series 1996, 3.85% 1/29/98, CP mode (e) 3,200 3,200
Marion County Solid Waste Disp. Rev.
(Grant Town Cogeneration Proj.) VRDN:
Series 1990 A, 3.75%, LOC Nat'l. Westminster Bank, PLC (e) 25,800
25,800
Series 1990 B, 3.70%, LOC Nat'l. Westminster Bank, PLC (e) 13,100
13,100
Series 1990 C, 3.70%, LOC Nat'l. Westminster Bank, PLC (e) 2,500
2,500
Series 1990 D, 3.70%, LOC Nat'l. Westminster Bank, PLC (e) 10,200
10,200
West Virginia Pub. Energy Auth. Rev. Bonds
(Morgantown Energy Assoc.):
3.90% 11/7/97, LOC Swiss Bank Corp., CP mode (e) 4,600 4,600
3.75% 11/20/97, LOC Swiss Bank Corp., CP mode (e) 1,700 1,700
3.90% 1/15/98, LOC Swiss Bank Corp., CP mode (e) 2,000 2,000
3.80% 1/16/98, LOC Swiss Bank Corp., CP mode (e) 6,100 6,100
3.85% 1/28/98, LOC Swiss Bank Corp., CP mode (e) 1,700 1,700
3.80% 1/29/98, LOC Swiss Bank Corp., CP mode (e) 1,000 1,000
71,900
WISCONSIN - 1.5%
De Pere Unified School Dist. BAN 4.25% 12/1/97 1,500 1,500
Eau Claire Area School Dist. TRAN 4.10% 9/28/98 5,900 5,908
Elkhorn Area School Dist. BAN 4.25% 4/1/98 1,800 1,801
Merrill Ind. Dev. Rev. (C&H Packaging Co., Inc.) Series 1996,
3.90%, LOC Firstar Bank Milwaukee, NA, VRDN (e) 5,900 5,900
Milwaukee School Dist. RAN 4.25% 8/27/98 16,500 16,553
Oak Creek Ind. Dev. Rev. (Outlook Packaging, Inc.) 3.85%,
LOC Firstar Bank, Milwaukee NA, VRDN (e) 2,000 2,000
Platteville Ind. Dev. Auth. Rev. (Woodward Communications)
3.75%, LOC Harris Trust & Savings Bank,
Chicago, VRDN (e) 1,650 1,650
Prentice Ind. Dev. Rev. (Blount Proj.) Series 1994, 3.85%,
LOC Nationsbank Corp., VRDN (e) 2,000 2,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
WISCONSIN - CONTINUED
Racine Ind. Dev. Rev. (Burlington Graphic Sys.) Series 1994,
3.80%, LOC Bank One, Milwaukee, VRDN (e) $ 1,660 $ 1,660
River Falls Ind. Dev. Rev. (Quadion Corp. Proj.) 3.85%,
LOC U.S. Bank of Washington, VRDN (e) 2,395 2,395
Shawano-Gresham School Dist. BAN 4.10% 12/1/97 2,000 2,000
Sturgeon Ind. Dev. Rev. (Marine Travelift Proj.) Series 1996,
3.90%, LOC Firstar Bank, Milwaukee, NA, VRDN (e) 1,600 1,600
Sturtevant Ind. Dev. Rev. (Quadra, Inc. Proj.) 3.80%, LOC
Bank One, Wisconsin, VRDN (e) 2,200 2,200
Sun Prairie Ind. Rev. (Flambeau Corp. Proj.) Series 1995, 3.90%,
LOC Firstar Bank, Milwaukee, NA, VRDN (e) 7,000 7,000
Wisconsin Participating VRDN, Series BTP-241,
3.80% (Liquidity Facility Bankers Trust Co.) (f) 5,800 5,800
59,967
WYOMING - 1.0%
Laramie County Ind. Dev. Rev. (Cheyenne Lt., Fuel & Pwr. Co.) VRDN:
3.80% (AMBAC Insured) (Liquidity Facility Norwest Bank, NA) (e) 3,500
3,500
3.80% (AMBAC Insured) (Liquidity Facility Norwest Bank, NA) (e)
2,500 2,500
Wyoming Commty. Dev. Auth. Participating VRDN,
Series PT-112, 3.80% (Liquidity Facility
Bayerische Hypotheken-und Wechsel Bank) (f) 4,300 4,300
Wyoming Gen. Oblig. TRAN:
4.25% 6/26/98 3,800 3,810
4.50% 6/26/98 28,900 29,026
43,136
MULTIPLE STATES - 0.6%
Clipper Participating VRDN, Series 1995-1, 3.84%
(Liquidity Facility State Street Bank &
Trust Co., Boston) (e)(f) 3,639 3,639
NCNB Tax-Exempt Trust Participating VRDN, Series 1990 A,
4.25%, LOC Nationsbank Corp. (f) 900 900
Stephens Equity Trust II Participating VRDN, Series 1996,
3.79%, LOC Republic Nat'l. Bank, NY (f) 19,081 19,081
23,620
SHARES
OTHER - 0.7%
Municipal Central Cash Fund (c)(d) 31,983 31,983
TOTAL INVESTMENTS - 100% $ 4,124,791
Total Cost for Income Tax Purposes $ 4,124,791
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST (000S)
Massachusetts
Rfdg. Series
BTP-258, 3.80%,
tender1/14/98
(Liquidity Facility
BankersTrust Co.) 10/30/97 $ 8,700
Pennsylvania Hsg.
Fin. Agcy. Single
Family Mtg.
Participating VRDN,
Series ML PT-119B,
3.80% (Liquidity
Facility Credit
Suisse First Boston) 10/16/97 $ 3,380
Houston Gen.
Oblig. TRAN Series
1997 A, 4.118%
4/15/98 10/29/97 $ 2,412
Tuloso Midway
Independent
School Dist. Adj.
Rate TRAN 4.064%
8/31/98 9/11/97 $ 1,750
3. Information in this report regarding holdings by state and security
types do not reflect the holdings of the Municipal Central Cash Fund.
A listing of the Municipal Central Cash Fund's holdings as of its most
recent fiscal period end is available upon request.
4. At the period end, the seven-day yield of the Municipal Central
Cash Fund was 3.73%. The yield refers to the income earned by
investing in the fund over the seven-day period, expressed as an
annual percentage.
5. Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
6. Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At October 31, 1997, the fund had a capital loss carryforward of
approximately $490,000 all of which will expire on October 31, 2004.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) OCTOBER 31, 1997
ASSETS
INVESTMENT IN SECURITIES, AT VALUE - $ 4,124,791
SEE ACCOMPANYING SCHEDULE
CASH 25,587
INTEREST RECEIVABLE 29,273
TOTAL ASSETS 4,179,651
LIABILITIES
PAYABLE FOR INVESTMENTS PURCHASED $ 45,484
DISTRIBUTIONS PAYABLE 391
ACCRUED MANAGEMENT FEE 982
OTHER PAYABLES AND ACCRUED EXPENSES 775
TOTAL LIABILITIES 47,632
NET ASSETS $ 4,132,019
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 4,132,511
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (493)
UNREALIZED GAIN FROM ACCRETION OF DISCOUNT 1
NET ASSETS, FOR 4,132,503 SHARES OUTSTANDING $ 4,132,019
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($4,132,019 (DIVIDED BY) 4,132,503 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED OCTOBER 31, 1997
INTEREST INCOME $ 147,599
EXPENSES
MANAGEMENT FEE $ 11,448
TRANSFER AGENT, ACCOUNTING AND CUSTODIAN 7,513
FEES AND EXPENSES
REGISTRATION FEES 219
AUDIT 66
LEGAL 41
REPORTS TO SHAREHOLDERS 95
MISCELLANEOUS 28
TOTAL EXPENSES BEFORE REDUCTIONS 19,410
EXPENSE REDUCTIONS (16) 19,394
NET INTEREST INCOME 128,205
REALIZED AND UNREALIZED GAIN (LOSS) 149
NET REALIZED GAIN (LOSS) ON INVESTMENT SECURITIES
INCREASE IN NET UNREALIZED GAIN FROM ACCRETION 1
OF DISCOUNT
NET GAIN (LOSS) 150
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 128,355
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
OCTOBER 31, 1997 OCTOBER 31, 1996
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 128,205 $ 114,663
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) 149 (524)
INCREASE IN NET UNREALIZED GAIN 1 0
FROM ACCRETION OF DISCOUNT
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 128,355 114,139
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (128,205) (114,663)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 13,444,798 11,031,824
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 123,338 109,908
COST OF SHARES REDEEMED (13,110,599) (11,072,668)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 457,537 69,064
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 457,687 68,540
NET ASSETS
BEGINNING OF PERIOD 3,674,332 3,605,792
END OF PERIOD $ 4,132,019 $ 3,674,332
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,
1997 1996 1995 1994 1993
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD
INCOME FROM INVESTMENT .032 .031 .034 .023 .022
OPERATIONS
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST INCOME (.032) (.031) (.034) (.023) (.022)
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD
TOTAL RETURN 3.28% 3.17% 3.48% 2.33% 2.23%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD $ 4,132 $ 3,674 $ 3,606 $ 3,495 $ 2,936
(IN MILLIONS)
RATIO OF EXPENSES TO AVERAGE .49% .49% .50% .52% .49%
NET ASSETS
RATIO OF NET INTEREST INCOME TO 3.23% 3.12% 3.43% 2.31% 2.21%
AVERAGE NET ASSETS
</TABLE>
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED OCTOBER 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Municipal Money Market Fund (the fund) is a fund of Fidelity
Beacon Street Trust (the trust) and is authorized to issue an
unlimited number of shares. The trust is registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company. At a special meeting of the
shareholders of the fund on November 26, 1997, shareholders approved
an Agreement and Plan of Reorganization, providing for the
reorganization of the fund into Fidelity Union Street Trust II,
effective January 1998. The financial statements have been prepared in
conformity with generally accepted accounting principles which permit
management to make certain estimates and assumptions at the date of
the financial statements. The following summarizes the significant
accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of original issue discount, is accrued as
earned. Accretion of discount represents unrealized gain until
realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
between the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission, the fund may invest in the
Municipal Central Cash Fund (the Cash Fund) managed by FMR Texas,
Inc., an affiliate of Fidelity Management & Research Company (FMR).
The Cash Fund is an open-end money market fund available only to
investment companies and other accounts managed by FMR and its
affiliates. The Cash Fund seeks preservation of capital, liquidity,
and current income by investing in high-quality, short-term municipal
securities of various states and municipalities. Income distributions
from the Cash Fund are declared daily and paid monthly from net
interest income.
2. OPERATING POLICIES -
CONTINUED
MUNICIPAL CENTRAL CASH FUND -
CONTINUED
Income distributions received by the fund are recorded as interest
income in the accompanying financial statements.
RESTRICTED SECURITIES. The fund is permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, restricted securities amounted to
$16,230,000 or .4% of net assets.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a
monthly fee that is calculated on the basis of a group fee rate plus
a fixed individual fund fee rate applied to the average net assets of
the fund. The group fee rate is the weighted average of a series of
rates and is based on the monthly average net assets of all the mutual
funds advised by FMR. The rates ranged from .1100% to .3700% for the
period. The annual individual fund fee rate is .15%. In the event
that these rates were lower than the contractual rates in effect
during the period, FMR voluntarily implemented the above rates, as
they resulted in the same or a lower management fee. For the period,
the management fee was equivalent to an annual rate of .29% of average
net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas,
Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of 50%
of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian and transfer and shareholder servicing agent for the fund.
The Bank has entered into a sub-contract with Fidelity Service
Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the
activities associated with the fund's transfer and shareholder
servicing agent and accounting functions. The fund pays account fees
and asset-based fees that vary according to account size and type of
account. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements. The accounting fee is
based on the level of average net assets for the month plus
out-of-pocket expenses. For the period, FSC received transfer agent
and accounting fees amounting to $6,842,000 and $451,000,
respectively.
For the period, the transfer agent fees were equivalent to an annual
rate of .17% of average net assets.
Shareholders participating in the Fidelity Ultra Service
Account(registered trademark) Program (the Program) paid a $5.00
monthly fee to Fidelity Brokerage Services, Inc. (FBSI), an affiliate
of FMR, for performing services
3. - FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
TRANSFER AGENT AND ACCOUNTING
FEES - CONTINUED
associated with the Program. For the period, fees paid to FBSI by
shareholders participating in the Program amounted to $386,000.
Effective September 1, 1997, the monthly fee was eliminated.
4. EXPENSE REDUCTIONS.
The fund has entered into an arrangement with its custodian whereby
credits realized as a result of uninvested cash balances were used to
reduce a portion of the fund's expenses. During the period, the fund's
custodian fees were reduced by $16,000 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Beacon Street Trust and the Shareholders
of Fidelity Municipal Money
Market Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity Municipal Money Market Fund (a fund of Fidelity Beacon Street
Trust) at October 31, 1997, the results of its operations for the year
then ended, and the changes in its net assets and the financial
highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements")
are the responsibility of the Fidelity Municipal Money Market Fund's
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of securities at October 31, 1997 by
correspondence with the custodian and the application of alternative
auditing procedures where securities purchased were not yet received
by the custodian, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
December 3, 1997
DISTRIBUTIONS
During fiscal year ended 1997, 100% of the fund's income dividends was
free from federal income tax, and 40.42% of the fund's income
dividends was subject to the federal alternative minimum tax.
PROXY VOTING RESULTS
A special meeting of the fund's shareholders was held on November 26,
1997. The results of votes taken among shareholders on proposals are
listed below.
PROPOSAL 1
To approve an amended management contract for the fund that would
reduce the management fee payable to FMR by the fund as FMR's assets
under management increase.
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 1,883,621,151.900 88.892
AGAINST 92,274,830.994 4.355
ABSTAIN 143,105,473.825 6.753
TOTAL 2,119,001,456.719 100.000
PROPOSAL 2
To amend the fund's fundamental investment limitation concerning
diversification limitation to exclude "securities of other investment
companies" from the limitation.
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 1,800,046,788.792 84.954
AGAINST 171,719,880.922 8.104
ABSTAIN 147,094,509.005 6.942
TOTAL 2,118,861,178.719 100.000
BROKER 140,278.000
NON-VOTES
PROPOSAL 3
To approve an agreement and plan providing for the reorganization of
the fund from a separate series of one Delaware business trust to
another.
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 1,853,341,905.665 87.469
AGAINST 107,525,695.729 5.074
ABSTAIN 157,993,577.325 7.457
TOTAL 2,118,861,178.719 100.000
BROKER 140,278.000
NON-VOTES
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate
the service, and on your first call, the system will help you create a
personal identification number (PIN) for security.
SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
0
*
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at
1-800-544-7272 for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND,
EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS
THAT YOU MAY HAVE A GAIN
OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY
MARKET FUNDS WILL BE ABLE TO
MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND
IS NOT INSURED OR
GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY
SALES CHARGES.
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Boyce I. Greer, Vice President
Fred L. Henning, Jr., Vice President
Diane M. McLaughlin, Vice President
Arthur S. Loring, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
* INDEPENDENT TRUSTEES
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
FIDELITY'S MUNICIPAL
MONEY MARKET FUNDS
California Municipal Money Market
Connecticut Municipal Money Market
Massachusetts Municipal Money Market
Michigan Municipal Money Market
Municipal Money Market
New Jersey Municipal Money Market
New York Municipal Money Market
Ohio Municipal Money Market
Spartan(registered trademark) Arizona Municipal
Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Market
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE
