STUART M. FRIED, CPA
LENED, INC.
-----------
REPORT TO STOCKHOLDERS
----------------------
FINANCIAL STATEMENTS
--------------------
YEARS ENDED SEPTEMBER 30, 1997 AND 1996
---------------------------------------
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
REPORT TO STOCKHOLDERS
----------------------
FINANCIAL STATEMENTS
--------------------
TABLE OF CONTENTS
-----------------
YEARS ENDED SEPTEMBER 30, 1997 AND 1996
---------------------------------------
PAGE
----
INDEPENDENT AUDITOR'S REPORT 1
STATEMENTS OF ASSETS, LIABILITIES AND
CAPITAL SECURITIES 2
STATEMENTS OF OPERATIONS, UNDISTRIBUTED NET
INCOME (LOSS) 3
STATEMENTS OF CHANGES IN NET ASSETS 4
STATEMENTS OF CASH FLOWS 5
NOTES TO FINANCIAL STATEMENTS 6-14
<PAGE>
STUART M. FRIED
CERTIFIED PUBLIC ACCOUNTANT
11 TWIN BROOK ROAD
WEST CALDWELL, N.J. 07006
----
(201) 226-4006
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and
Stockholders of Lened, Inc.
c/o Joseph Flusfeder
15 West 53rd Street
New York, New York
We have audited the accompanying statements of assets, liabilities and capital
securities of Lened, Inc. (a New Jersey Corporation), as of September 30, 1997
and 1996, and the related statements of operations, undistributed net income
(loss) and statements of changes in net assets, and cash flows for the years
then ended. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. The
investment securities held in custody were confirmed to us by the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Lened, Inc. as of September
30, 1997 and 1996, and the results of its operations and its cash flows for
the years then ended in conformity with generally accepted accounting
principles.
/s/ STUART M. FRIED
STUART M. FRIED, CPA
West Caldwell, New Jersey
November 10, 1997
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
STATEMENTS OF ASSETS, LIABILITIES
---------------------------------
AND CAPITAL SECURITIES
----------------------
ASSETS
------
SEPTEMBER 30,
-------------
1997 1996
---- ----
INVESTMENT IN MUNICIPAL BONDS,
with accrued interest - at fair market
value (amortized cost $1,793,110 and
$1,729,006) (Note 1) $1,865,312 $1,786,084
Cash 615 903
Investment in Vista New York Tax-Free
Money Market Fund (3.31% avg. Interest rate) 5,715 81,608
Prepaid expenses 1,297 1,293
---------- ----------
$1,872,939 $1,869,888
========== ==========
LIABILITIES AND CAPITAL SECURITIES
----------------------------------
LIABILITIES:
Dividends payable $ 79,669 $ 92,531
Other current liabilities 13,273 11,641
---------- ----------
92,942 104,172
---------- ----------
NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL SHARES:
CAPITAL SHARES
Common stock, no par value, 25,200 shares
authorized, 18,960 issued and outstanding $ 22,500 22,500
Paid in capital 144,732 144,732
Retained earnings 1,569,202 1,577,132
Undistributed net income (loss) 693 (7,930)
Unrealized appreciation of investments 42,870 29,282
---------- ----------
Total stockholders' equity (equivalent to
$93.88 per share at 9/30/97 and $93.13
per share at 9/30/96) 1,779,997 1,765,716
---------- ----------
$1,872,939 $1,869,888
========== ==========
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
STATEMENTS OF OPERATIONS,
-------------------------
UNDISTRIBUTED NET INCOME (LOSS)
-------------------------------
<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER 30,
-------------------------
1997 1996
---- ----
<S> <C> <C>
INVESTMENT INCOME:
INCOME
Interest income on tax free municipals $ 97,787 $ 108,481
Dividend income - tax free 2,080 3,574
---------- ----------
99,867 112,055
---------- ----------
EXPENSES:
Custodial fees (Note 4) 1,908 2,293
Audit fees 2,400 2,400
Legal fees 7,087 3,000
Taxes other than income taxes 250 250
Office expense 9,751 8,466
Insurance 1,296 1,929
Filing fees 250 250
---------- ----------
22,942 18,588
---------- ----------
INVESTMENT INCOME 76,925 93,467
Net realized gain (loss) from investment transactions 3,550 (8,695)
---------- ----------
INVESTMENT INCOME BEFORE FEDERAL
INCOME TAX 80,475 84,772
Less: Federal income taxes 113 171
---------- ----------
NET INVESTMENT INCOME 80,362 84,601
Less: Dividends paid 79,669 92,531
---------- ----------
UNDISTRIBUTED NET INCOME (LOSS) $ 693 $ (7,930)
========== ==========
UNREALIZED APPRECIATION OF INVESTMENTS $ 42,870 $ 29,282
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------
<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER 30,
-------------------------
1997 1996
---- ----
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Investment income - net $ 76,812 $ 93,296
Net realized gain (loss) on investments 3,550 (8,695)
Change in unrealized appreciation (depreciation) 13,588 (19,188)
---------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 93,950 65,413
DISTRIBUTION TO SHAREHOLDERS FROM
NET INVESTMENT INCOME 79,669 92,531
---------- ----------
TOTAL INCREASE (DECREASE) 14,281 (27,118)
NET ASSETS BEGINNING OF PERIOD 1,765,716 1,792,834
---------- ----------
NET ASSETS END OF PERIOD (Including
Undistributed Net Income of $(8,693) and
$(7,930), respectively) $1,779,997 $1,765,716
========== ==========
DIVIDENDS PER SHARE $ 4.20 $ 4.88
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-4-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
STATEMENT OF CASH FLOWS
-----------------------
INCREASE (DECREASE) IN CASH
---------------------------
<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER 30,
-------------------------
1997 1996
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 80,362 $ 84,601
Adjustments to reconcile net income to net
cash provided by operating activities:
Changes in assets and liabilities:
(Increase) Decrease in municipal bonds with
accrued interest at fair market value (79,228) (48,686)
(Increase) Decrease in Vista New York
Tax Free Money Market Fund 75,893 90,167
(Increase) Decrease in prepaid expenses (4) 504
Increase (Decrease) in other current liabilities 1,632 3,486
Realized (gain) loss from investment transactions
included in net income (3,550) 8,695
-------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 75,105 138,767
-------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase (Decrease) in unrealized appreciation 13,588 (19,188)
of investments
Realized gain (loss) from investment transactions 3,550 (8,695)
-------- ---------
NET CASH (USED) PROVIDED BY INVESTING
ACTIVITIES 17,138 (27,883)
-------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid (92,531) (110,724)
-------- ---------
NET INCREASE (DECREASE) IN CASH AND (288) 160
CASH EQUIVALENTS
CASH - BEGINNING OF YEAR 903 743
-------- ---------
CASH - END OF YEAR $ 615 $ 903
======== =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Income taxes $ 250 $ 250
</TABLE>
The accompanying notes are an integral part of these financial statements.
-5-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1997
------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
- ----------------------------------------
Lened, Inc. was incorporated in New Jersey on January 31, 1957. Lened, Inc.
commenced operations as an investment company investing at least 50% of the
value of its total assets, determined at the close of each quarter of its
taxable year, in tax-exempt state and local obligations, may distribute, as a
tax-exempt dividend, to its shareholders an amount equal to the interest
earned on such tax-exempt obligations, provided it designates such dividends
as tax-exempt interest dividends. It is the Company's intention to invest
substantially all of its assets, except such amounts as it may carry in demand
deposits, in such tax-exempt obligations and to distribute all of its net
income, including any net short-term capital gains, to its shareholders.
The Company is registered under the Investment Company Act of 1940, as
amended, as a diversified, closed-end investment company.
The following is a summary of significant accounting policies followed by the
Company in the preparation of its financial statements:
(a) Investments are valued by the Custodian. These values may not
necessarily be bids or actual last sale prices, but are estimates
of the fair value of the investment securities, based upon
prevailing interest rates, applicable bond ratings and other
factors influencing the markets in which the investments are
purchased and sold.
(b) It is the policy of the Company to continue to qualify as a
regulated investment company if such qualifications are in the
best interests of its shareholders, by complying with the
provisions available under the Internal Revenue Code, and to make
distributions of taxable income sufficient to relieve it from all,
or substantially all, Federal income taxes. Therefore, unless the
Company has capital gains or interest on Treasury Bills, no
federal tax provision is required.
-6-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1997
------------------
(c) Realized gains and losses on investments are computed on the
basis of the identified cost of the specific securities sold.
(d) Securities transactions are recorded on the date the securities
are purchased or sold (the trade date). Interest income (net of
premium or discount amortization) is recorded as earned.
(e) Unrealized Appreciation (Depreciation) of Investments is stated
as the difference between amortized cost and fair market value.
At September 30, 1997
Unrealized Appreciation of Bonds totaled $ 43,394
Unrealized Depreciation of Bonds totaled 524
---------
Net Unrealized Appreciation of Investments $ 42,870
=========
NOTE 2 - PURCHASES, SALES AND REDEMPTIONS OF SECURITIES
- -------------------------------------------------------
Securities exclusive of Vista New York Tax Free Money Market Fund purchased by
the Company amounted to $205,780 for the year ended September 30, 1997 and
$529,000 for the year ended September 30, 1996. Sales of securities exclusive
of Vista New York Tax Free Money Market Fund amounted to $143,093 for the year
ended September 30, 1997 and $465,000 for the year ended September 30, 1996.
NOTE 3 - DISTRIBUTIONS
- ----------------------
The Company distributed income of $79,669 ($4.20 per share) and $92,531 ($4.88
per share) for the years ended September 30, 1997 and 1996 in the form of
dividends.
NOTE 4 - CUSTODIAL FEES
- -----------------------
Pursuant to an agreement with the custodian, the custodial fee is based on the
number of bond coupons redeemed based on an annual charge of $1.25 per $1,000
of the first $500,000, $.75 per $1,000 of the next $500,000 face value of
bonds and $.50 per $1,000 face value above $1,000,000. A charge of $15 is
made for each security transaction.
During the years ended September 30, 1997 and 1996, the Company was charged an
aggregate of $1,908 and $2,293 respectively.
NOTE 5 - REMUNERATION
- ---------------------
The Company's policy is not to pay, and for the periods reported did not pay,
remuneration to either officers or directors.
-7-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1997
------------------
NOTE 6 - CAPITAL PER SHARE AND RELATED INFORMATION
- --------------------------------------------------
Selected data for a share of capital stock outstanding throughout the period:
YEARS ENDED SEPTEMBER 30,
-------------------------
1997 1996
---- ----
Investment income $ 5.27 $ 5.91
Operating expenses 1.21 .98
------- -------
INVESTMENT INCOME BEFORE FEDERAL 4.06 4.93
INCOME TAX
FEDERAL INCOME TAX 0 0
------- -------
INVESTMENT INCOME - NET 4.06 4.93
Dividends to shareholders 4.20 4.88
------- -------
(.14) .05
Realized and unrealized gain (loss)
on investments - net .89 (1.48)
------- -------
CHANGE IN NET VALUE .75 (1.43)
NET ASSET VALUE:
Beginning of period 93.13 94.56
------- -------
End of period $ 93.88 $ 93.13
======= =======
Ratio of operating expenses to
average net assets .0127% .0102%
Ratio of investment income net to
average net assets .0552% .0614%
Portfolio turnover 8.1% 26.74%
Number of shares outstanding at end
of period 18,960 18,960
-8-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1997
------------------
NOTE 7 - INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
- ----------------------------------------------------------
<TABLE>
<CAPTION>
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
<S> <C> <C> <C>
Cusip #010014AS7
Akron Central School Dist, N.Y.
A General Obligation (FSA)
5.4% Due 6/1/2001 $ 50,000 $ 51,500 $ 52,987
Cusip #010014AT5
Akron Central School District, N.Y.
A General Obligation (FSA)
5.4% Due 6/1/2002 175,000 180,314 186,506
Cusip #184160G2G
Clayton Cnty GA Hsg
Autu, Multi Fa
(Pointe Clear Apts Proj)
4.5% Due 7/01/2002 50,000 50,000 50,427
Cusip #23354NAG8
Dade County FLA Res Recovery
FAC 5.0% Due 10/1/03
REFC (AMBAL) Rev 100,000 99,501 105,369
Cusip #246006GU8
Delaware County Authority,
P.A. Hospital Revenue
(Mercy Catholic Med Ctr-Ser B)
7.25% Due 11/1/2002-97NC 60,000 60,000 63,369
Cusip #254764CN1
District of Columbia Hospital
Refunding & Impt Revenue
(Childrens Hosp-A) (Insd By FGIC)
5.8% Due 7/15/2001-NC 100,000 100,323 105,721
-9-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1997
------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Cusip #254760YL9
District of Columbia A General
Obligation Series A (RFDG)
5.625% Due 6/1/2002 50,000 50,163 52,621
Cusip #2547620M2
District Columbia G/O
5.625% Due 6/1/02
Ref- Ser A- (FSA- CR) 100,000 102,488 106,859
Cusip #2547603MI
District of Columbia A General
Obligation (Series A) 6%
Due 6/1/2009 50,000 51,557 54,424
Cusip #396080ED1
Greenville Hospital System Board of
Trustees, S.C. Hospital Facilities
Revenue Series B
4.9% Due 5/1/2005-98 NC 95,000 95,003 98,420
Cusip #451295HW2
Idaho Health Facilities Authority
Refunding Revenue
(Bannock Regl Med Ctr Proj)
7.6% Due 5/1/2003 20,000 20,096 21,303
Cusip #462590BF6
Iowa Student Loan Liquidity Corp.
Student
Loan Revenue (Insured by Ambac)
6.6% Due 12/1/2000 90,000 93,221 97,579
-10-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1997
------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Cusip #544738AJ6
Los Angeles County Public Works
Fing Auth., Calif. Refunding
Revenue (Capital Construction)
4.6% Due 3/1/2002 100,000 98,521 102,018
Cusip #561842FQ3
Manatee County Housing Finance
Auth. Fla. Single Family Mortgage
Revenue (1985 Ser A) (Insd By FGIC)
9.125% Due 6/1/2016 5,000 5,049 5,160
Cusip #57419JNG4
Maryland Cnty FLA Hsg
Fin Auth Rev 4.6% Due 1/01/2003 30,000 30,000 30,516
Cusip #63967CRH7
Nebraska Investment Finance
Authority, Sing Famil
5.0% Due 9/01/2007 50,000 49,998 50,400
Cusip #639683J51
Nebraska Public Power
District, NEB Refunding
Power Supply System - Series
4.5% Due 1/1/2000 70,000 68,764 71,318
Cusip #645793UF5
New Jersey Health Care Facilities
Financing Authority Revenue
(Kennedy Med-Univ Med Ctr-Ser D)
7.875% Due 7/1/2009-98NC 20,000 19,944 21,336
-11-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1997
------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Cusip #645905PE4
New Jersey Economic
Dev Auth Rev
5.4% Due 2/1/06
Call Preddie Sch Proj
Ser-A 60,000 60,810 62,981
Cusip #649649XT2
New York City, N.Y.
A General Obligation
Series B
7.2% Due 2/1/1998-NC 50,000 49,993 51,143
Cusip #649650VY1
New York City, N.Y.
A General Obligation
(Series H)
6.8% Due 2/1/2000-NC 35,000 35,007 37,287
Cusip #649655DH7
New York City, N.Y.
A General Obligation
8% Due 8/1/2010-98NC 20,000 20,001 21,256
Cusip #6496644M8
New York City, G/O
SER-A
5.7% Due 8/1/02 40,000 40,000 42,283
Cusip #649900AJ6
New York State Environmental
Facilities Corp., N.Y. Resource
Recovery Revenue (Huntington Proj)
7.5% Due 10/1/2012-99NC 50,000 50,000 55,249
-12-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1997
------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Cusip #649858WM5
New York State Housing
Finance Agency
Non Profit Housing Project
6.5% Due 11/1/1999 25,000 24,892 26,223
Cusip #649868NJ1
New York State Housing Finance Agency
Housing Help Revenue
7.7% Due 11/1/1997-NC 20,000 20,023 20,670
Cusip #6498814H9
New York State Medical Care Facilities
Finance Agency Revenue
7% Due 8/15/1998-NC 40,000 40,204 41,426
Cusip #720653FV1
Pierce County WASH Swr
5.20% DUE 2/01/2005 25,000 25,747 25,668
Cusip #815188AZO
Sedalia Mo Hosp Rev
(Botuwell Regl Health Ctr)
4.6% Due 3/01/2003 50,000 50,000 50,541
-13-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1997
------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Cusip #882585AD4
Texas National Research Laboratory
Commission Financing Corp.
Lease Revenue
(Supercond Super Coll PJ)
6% Due 12/1/1998-NC 75,000 74,981 78,297
Cusip #896559BL4
Trinity River Auth., Texas Big Bear
Creek Interceptor RFDG Revenue
(Waste Water Sys Cont) (MBIA)
4.5% Due 2/1/2003 75,000 75,000 75,955
---------- ---------- ----------
TOTAL INVESTMENT - 100.05% $1,780,000 $1,793,100 1,865,312
========== ==========
OTHER ASSETS LESS LIABILITIES - (.05%) (85,315)
----------
NET ASSETS - 100% $1,779,997
==========
NET ASSET VALUE PER SHARE $ 93.88
==========
OUTSTANDING SHARES AT SEPTEMBER 30, 1997 18,960
==========
</TABLE>
* Includes accrued interest
-14-
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM FISCAL YEAR END 9/30/97 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1997<F1>
<PERIOD-START> OCT-01-1996
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 1793110<F2>
<INVESTMENTS-AT-VALUE> 1865312<F3>
<RECEIVABLES> 0
<ASSETS-OTHER> 7627
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1872939
<PAYABLE-FOR-SECURITIES> 79669<F4>
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13273
<TOTAL-LIABILITIES> 92942
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 167232<F5>
<SHARES-COMMON-STOCK> 18960
<SHARES-COMMON-PRIOR> 18960
<ACCUMULATED-NII-CURRENT> 693
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 42870
<NET-ASSETS> 1779997
<DIVIDEND-INCOME> 2080
<INTEREST-INCOME> 97787
<OTHER-INCOME> 0
<EXPENSES-NET> 22942
<NET-INVESTMENT-INCOME> 76925
<REALIZED-GAINS-CURRENT> 3350
<APPREC-INCREASE-CURRENT> 13588
<NET-CHANGE-FROM-OPS> 93950
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 79669
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 14281
<ACCUMULATED-NII-PRIOR> 693
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 22942
<AVERAGE-NET-ASSETS> 1810004
<PER-SHARE-NAV-BEGIN> 93.13
<PER-SHARE-NII> 4.06
<PER-SHARE-GAIN-APPREC> .89
<PER-SHARE-DIVIDEND> 4.20
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 93.88
<EXPENSE-RATIO> .055
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1> NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1997 ARE
INCORPORATED HEREIN BY REFERENCE
<F2> INVESTMENTS AT COST INCLUDES AMORTIZED COST
<F3> INVESTMENTS AT VALUE INCLUDE ACCRUED INTEREST
<F4> PAYABLE FOR SECURITIES INCLUDES DIVIDEND PAYABLE
<F5> PAID IN CAPITAL COMMON INCLUDES COMMON STOCK AND PAID IN CAPITAL
</FN>
</TABLE>
