STUART M. FRIED, CPA
LENED, INC.
REPORT TO STOCKHOLDERS
FINANCIAL STATEMENTS
MARCH 31, 1997
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
REPORT TO STOCK HOLDERS
FINANCIAL STATEMENTS
TABLE OF CONTENTS
MARCH 31, 1997
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 6-15
<PAGE>
[LETTERHEAD OF STUART M. FRIED, CPA]
ACCOUNTANTS' REPORT
-------------------
To the Board of Directors and
Stockholders of Lened, Inc.
New York, New York
We have reviewed the accompanying statement of assets, liabilities and capital
securities of Lened, Inc. (A New Jersey corporation) as of March 31, 1997,
and the related statements of operations, undistributed net income (loss) and
statements of changes in net assets and cash flows for the six months then
ended, in accordance with Statements on Standards for Accounting and Review
Services issued by the American Institute of Certified Public Accountants.
All information in these financial statements is the representation of Lened,
Inc. The statement of assets, liabilities and capital securities as of March
31, 1997 has been derived from and does not include all of the disclosures
contained in the financial statements for the year ended September 30, 1996.
Those financial statements were audited by us in our report thereon, dated
November 10, 1996 and which expressed an unqualified opinion on them.
A review of interim financial information consists principally of obtaining an
understanding of the system for the preparation of interim financial
information, applying analytical review procedures to financial data and
making inquiries of persons responsible for financial and accounting matters.
It is substantially less in scope than an examination in accordance with
generally accepted auditing standards (which will be performed for the full
year), the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an
opinion.
Based on our review, we are not aware of any material modifications that
should be made to the statement of assets, liabilities and capital securities
as of March 31, 1997 and the related statements of operations, undistributed
net income (loss) and net unrealized gain (loss) on investments and cash flows
for the six months ended March 31, 1997 for them to be in conformity with
generally accepted accounting principles.
/s/ STUART M. FRIED, CPA
STUART M. FRIED, CPA
W. Caldwell, New Jersey
May 14, 1997
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
STATEMENTS OF ASSETS, LIABILITIES
AND CAPITAL SECURITIES
ASSETS
------
6 MONTHS YEAR ENDED
ENDED 3/31/97 9/30/96
------------- -----------
(Unaudited)
INVESTMENT IN MUNICIPAL BONDS,
with accrued interest, at fair market
value (amortized cost $1,712,840
and $1,729,006) (Note 1) $1,763,815 $1,786,084
Cash 669 903
Investment in Vista New York Tax-Free
Money Market Fund (2.57% avg. interest rate) 40,812 81,608
Prepaid expenses 711 1,293
---------- ----------
$1,806,007 $1,869,888
========== ==========
LIABILITIES AND CAPITAL SECURITIES
----------------------------------
LIABILITIES
Dividends payable $ 0 $ 92,531
Other current liabilities 6,610 11,641
---------- ----------
6,610 104,172
---------- ----------
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) 42,032 (7,930)
Unrealized appreciation of investments 20,931 29,282
---------- ----------
Total stockholders' equity (equivalent to
$94.90 per share at 3/31/97 and $93.13
per share at 9/30/96) 1,799,397 1,765,716
---------- ----------
$1,806,007 $1,869,888
========== ==========
See accountants' review report and notes to financial statements.
-2-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
STATEMENTS OF OPERATIONS,
UNDISTRIBUTED NET INCOME (LOSS)
6 MONTHS YEAR ENDED
ENDED 3/31/97 9/30/96
------------- -----------
(Unaudited)
INVESTMENT INCOME:
INCOME:
Interest income on tax free municipals $ 49,381 $108,481
Dividend income - tax free 864 3,574
-------- --------
50,245 112,055
-------- --------
EXPENSES:
Custodial fees (Note 4) 894 2,293
Audit fees 500 2,400
Legal fees 2,267 3,000
Taxes other than income taxes 0 250
Office expense 4,616 8,466
Insurance 583 1,929
Filing fees 125 250
-------- --------
8,985 18,588
-------- --------
INVESTMENT INCOME 41,260 93,467
Net realized gain (loss) from
investment transactions 832 (8,695)
-------- --------
INVESTMENT INCOME BEFORE
FEDERAL INCOME TAX 42,092 84,772
Less: Federal income taxes 60 171
-------- --------
NET INVESTMENT INCOME 42,032 84,601
Less: Dividends paid 0 92,531
-------- --------
UNDISTRIBUTED NET INCOME (LOSS) $ 42,032 $ (7,930)
======== ========
See accountants' review report and notes to financial statements.
-3-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
STATEMENTS OF CHANGES IN NET ASSETS
6 MONTHS YEAR ENDED
ENDED 3/31/97 9/30/96
------------- -----------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Investment income - net $ 41,200 $ 93,296
Net realized gain (loss) on investments 832 (8,695)
Change in unrealized appreciation
(depreciation) (8,351) (19,188)
---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 33,681 65,413
DISTRIBUTION TO SHAREHOLDERS FROM
NET INVESTMENT INCOME 0 92,531
---------- ----------
TOTAL INCREASE (DECREASE) 33,681 (27,118)
NET ASSETS BEGINNING OF PERIOD 1,765,716 1,792,834
---------- ----------
NET ASSETS END OF PERIOD (Including
Undistributed Net Income of $42,032 and
($7,930), respectively) $1,799,397 $1,765,716
========== ==========
DIVIDENDS PER SHARE $ 0 $ 4.88
========== ==========
See accountants' review report and notes to financial statements.
-4-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH
6 MONTHS YEAR ENDED
ENDED 3/31/97 9/30/96
(Unaudited)
------------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 42,032 $ 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 22,269 (48,686)
(Increase) Decrease in Vista New York
Tax Free Money Market Fund 40,796 90,167
(Increase) Decrease in prepaid expenses 582 504
Increase (Decrease) in other current liabilities (5,031) 3,486
Realized ( gain) loss from investment transactions
included in net income (832) 8,695
-------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 99,816 138,767
-------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase (Decrease) in unrealized appreciation
of investments (8,351) (19,188)
Realized gain (loss) from investment transactions 832 (8,695)
-------- ---------
NET CASH (USED) BY INVESTING ACTIVITIES (7,519) (27,883)
-------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid (92,531) (110,724)
-------- ---------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (234) 160
CASH - BEGINNING OF PERIOD 903 743
-------- ---------
CASH - END OF PERIOD $ 669 $ 903
======== =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes $ 250 $ 250
See accountants' review report and notes to financial statements.
-5-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 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.
See accountants' review report
-6-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 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 March 31, 1997
Unrealized Appreciation of Bonds totaled $ 24,991
Unrealized Depreciation of Bonds totaled (4,060)
----------
Net unrealized Appreciation of Investments $ 20,931
==========
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 $ 0 for the six months ended March 31, 1997 and
$520,000 for the year ended September 30, 1996. Sales of securities exclusive
of Vista New York Tax Free Money Market Fund amounted to $14,971 for the six
months ended March 31, 1997 and $465,000 for the year ended September 30,
1996.
NOTE 3 - DISTRIBUTIONS
- ----------------------
The Company distributed income of $92,531 ($4.88 per share) for the year ended
September 30, 1996.
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 six months ended March 31, 1997, the Company was charged an
aggregate of $894 and $2,293 for the year ended September 30, 1996.
See accountants' review report
-7-
<PAGE>
STUART M. FRIED,CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
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.
NOTE 6 - CONTINGENT LIABILITIES AND EVENTS
- ------------------------------------------
Lened International Corp., a subsidiary of Lened, Inc. ceased its activities
as a Domestic International Sales Corporation. Untaxed income of the
subsidiary originally in an amount in excess of $600,000 was taxable to Lened,
Inc., the parent, over an eight year period. No liability is or was provided
on the balance sheet, under Subchapter M of the Internal Revenue Code, which
stipulates that this type of distribution to the shareholders of a regulated
investment company is taxable directly to the shareholders.
The Internal Revenue Service has not examined income tax returns for all open
years.
See accountants' review report.
-8-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
NOTE 7 - CAPITAL PER SHARE AND RELATED INFORMATION
- --------------------------------------------------
Selected data for a share of capital stock outstanding throughout the period:
6 MONTHS YEAR ENDED
ENDED 3/31/97 9/30/96
------------- ----------
(Unaudited)
Investment income $ 2.64 $ 5.91
Operating expenses .47 .98
-------- --------
INVESTMENT INCOME BEFORE FEDERAL
INCOME TAX 2.17 4.93
FEDERAL INCOME TAX 0 0
-------- --------
INVESTMENT INCOME - NET 2.17 4.93
Dividends to shareholders 0 4.88
-------- --------
2.17 .05
Realized and unrealized gain (loss)
on investments - net (.40) (1.48)
-------- --------
CHANGE IN NET VALUE 1.77 (1.43)
NET ASSET VALUE:
Beginning of period 93.13 94.56
-------- --------
End of period $ 94.90 $ 93.13
======== ========
Ratio of operating expenses to
average net assets .0050% .0102%
Ratio of investment income net to
average net assets .0280% .0614%
Portfolio turnover 0% 26.74%
Number of shares outstanding at end
of period 18,960 18,960
See accountants' review report
-9-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
NOTE 8 - INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
- ----------------------------------------------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Cusip #010014AS7
Akron Central School Dist, N.Y.
A General Obligation (FSA)
5.4% Due 6/1/2001 $ 50,000 $ 51,647 $ 52,245
Cusip #010014AT5
Akron Central School District, N.Y.
A General Obligation (FSA)
5.4% Due 6/1/2002 175,000 180,883 183,053
Cusip #23354NAG8
Dade County FLA Res Recovery
FAC 5.0% Due 10/1/03
REFC (AMBAL) Rev 100,000 99,459 102,096
Cusip #246006GU8
Delaware County Authority,
P.A. Hospital Revenue
(Mercy Catholic Med Ctr-Ser B)
7.25% Due 11/1/2002-97NC 60,000 59,930 63,844
Cusip #254764CN1
District of Columbia Hospital
Refunding & Impt Revenue
(Childrens Hosp-A) (Insd By FGIC)
5.8% Due 7/15/2001-NC 100,000 100,366 104,370
Cusip #254760YL9
District of Columbia A General
Obligation Series A (RFDG)
5.625% Due 6/1/2002 50,000 50,180 52,864
See accountants' review report
-10-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Cusip #2547620M2
District Columbia G/O
5.625% Due 6/1/02
Ref- Ser A- (FSA- CR) 100,000 102,754 102,670
Cusip #2547603MI
District of Columbia A General
Obligation (Series A) 6%
Due 6/1/2009 50,000 51,624 52,226
Cusip #386442LV7
Grand River Dam Authority, Okal.
Refunding Revenue
Prerefunded 6-1-97 @ 102.
7% Due 6/1/2006-97NC 25,000 24,986 26,213
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 95,562
Cusip #451295HW2
Idaho Health Facilities Authority
Refunding Revenue
(Bannock Regl Med Ctr Proj)
7.6% Due 5/1/2003 20,000 20,103 21,397
Cusip #462590BF6
Iowa Student Loan Liquidity Corp.
Student
Loan Revenue (Insured by Ambac)
6.6% Due 12/1/2000 90,000 93,730 96,546
Cusip #544738AJ6
Los Angeles County Public Works
Fing Auth., Calif. Refunding
Revenue (Capital Construction)
4.6% Due 3/1/2002 100,000 98,353 99,383
See accountants' review report
-11-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
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 5,051 5,166
Cusip #626190RU8
Municipal Assistance Corp., N.Y.
Series #60 Callable
7% Due 7/1/2006-97NC 20,000 19,647 20,905
Cusip #639683J51
Nebraska Public Power
District, NEB Refunding
Power Supply System - Series
4.5% Due 1/1/2000 70,000 68,490 70,533
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 19,941 21,432
Cusip #645905PE4
New Jersey Economic
Dev Auth Rev
5.4% Due 2/1/06
Call Preddie Sch Proj
Ser-A 60,000 60,859 61,081
Cusip #649652UT9
New York City, N.Y.
A General Obligation
Series A
7.0% Due 8/1/2004-8/1/97NC 15,000 14,529 15,589
Cusip #649649XT2
New York City, N.Y.
A General Obligation
Series B
7.2% Due 2/1/1998-NC 50,000 49,983 51,875
See accountants' review report
-12-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Cusip #649650VY1
New York City, N.Y.
A General Obligation
(Series H)
6.8% Due 2/1/2000-NC 35,000 35,009 36,964
Cusip #649655DH7
New York City, N.Y.
A General Obligation
8% Due 8/1/2010-98NC 20,000 20,001 21,592
Cusip #6496644M8
New York City, G/O
SER-A
5.7% Due 8/1/02 40,000 40,000 41,056
Cusip #649652US1
New York City, N.Y.
A General Obligation
(Prerefunded 8/1/97 @101.50)
7% Due 8/1/2004 - 8/1/97NC 10,000 9,917 10,313
Cusip #649831VJ0
New York State Dormitory Authority
City University System Consolidated
Revenue
Series A 8% Due 7/1/2007-97NC 55,000 55,090 57,764
See accountants' review report
-13-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
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 55,961
Cusip #649858WM5
New York State Housing
Finance Agency
Non Profit Housing Project
6.5% Due 11/1/1999 25,000 24,867 26,208
Cusip #649868NJ1
New York State Housing Finance Agency
Housing Help Revenue
7.7% Due 11/1/1997-NC 20,000 20,160 20,825
Cusip #6498814H9
New York State Medical Care Facilities
Finance Agency Revenue
7% Due 8/15/1998-NC 40,000 40,321 41,739
See accountants' review report
-14-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 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 74,957 78,760
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 73,583
---------- ---------- ---------
TOTAL INVESTMENT -102.0% $1,700,000 $1,712,840 1,763,815
========== ==========
OTHER ASSETS LESS LIABILITIES - 2% 35,582
---------
NET ASSETS - 100% $1,799,397
==========
NET ASSET VALUE PER SHARE $ 94.90
==========
OUTSTANDING SHARES AT MARCH 31, 1997 18,960
==========
* Includes accrued interest
See accountants' review report
-15-
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM SIX MONTHS ENDED MARCH 31, 1997 AND IS QULAIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997<F1>
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 1712840<F2>
<INVESTMENTS-AT-VALUE> 1763815<F3>
<RECEIVABLES> 0
<ASSETS-OTHER> 42192
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1806007
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6610
<TOTAL-LIABILITIES> 6610
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 167232<F4>
<SHARES-COMMON-STOCK> 18960
<SHARES-COMMON-PRIOR> 18960
<ACCUMULATED-NII-CURRENT> 42032
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20931
<NET-ASSETS> 1799397
<DIVIDEND-INCOME> 864
<INTEREST-INCOME> 49381
<OTHER-INCOME> 0
<EXPENSES-NET> 8985
<NET-INVESTMENT-INCOME> 41260
<REALIZED-GAINS-CURRENT> 832
<APPREC-INCREASE-CURRENT> (8351)
<NET-CHANGE-FROM-OPS> 33681
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 33681
<ACCUMULATED-NII-PRIOR> 42032
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8985
<AVERAGE-NET-ASSETS> 1794882
<PER-SHARE-NAV-BEGIN> 93.13
<PER-SHARE-NII> 2.17
<PER-SHARE-GAIN-APPREC> (.40)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 94.90
<EXPENSE-RATIO> .028
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1996 ARE
INCORPORATED HEREIN BY REFERENCE
<F2>INVESTMENTS AT COST INCLUDES AMORTIZED COST
<F3>INVESTMENTS AT VALUE INCLUDE ACCRUED INTEREST RECEIVABLE
<F4>PAID IN CAPITAL COMMON INCLUDES COMMON STOCK AND PAID IN CAPITAL
</FN>
</TABLE>
