STUART M. FRIED, CPA
LENED, INC.
-----------
REPORT TO STOCKHOLDERS
----------------------
FINANCIAL STATEMENTS
--------------------
YEARS ENDED SEPTEMBER 30, 1998 AND 1997
---------------------------------------
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
REPORT TO STOCKHOLDERS
----------------------
FINANCIAL STATEMENTS
--------------------
TABLE OF CONTENTS
-----------------
YEARS ENDED SEPTEMBER 30, 1998 AND 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 6-13
<PAGE>
STUART M. FRIED
CERTIFIED PUBLIC ACCOUNTANT
11 TWIN BROOK ROAD
WEST CALDWELL, N.J. 07006
---
(973) 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, 1998
and 1997, 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,
1998 and 1997, 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 7, 1998
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
STATEMENTS OF ASSETS, LIABILITIES
---------------------------------
AND CAPITAL SECURITIES
----------------------
<TABLE>
<CAPTION>
ASSETS
------
SEPTEMBER 30,
-------------------------
1998 1997
---- ----
<S> <C> <C>
INVESTMENT IN MUNICIPAL BONDS,
with accrued interest - at fair market value
(amortized cost $1,753,856 and
$1,793,110) (Note 1) $1,835,554 $1,865,312
Cash 0 615
Investment in Vista New York Tax-Free
Money Market Fund (3.02% avg. Interest rate) 43,563 5,715
Prepaid expenses 1,296 1,297
---------- ----------
$1,880,413 $1,872,939
========== ==========
LIABILITIES AND CAPITAL SECURITIES
----------------------------------
LIABILITIES:
Dividends payable $ 79,211 $ 79,669
Other current liabilities 6,937 13,273
---------- ---------- -
86,148 92,942
---------- ---------- -
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 1,569,895 1,569,202
Undistributed net income (loss) 685 693
Unrealized appreciation of investments 56,453 42,870
---------- ----------
Total stockholders' equity (equivalent to
$94.63 per share at 9/30/98 and $93.88
per share at 9/30/97) 1,794,265 1,779,997
---------- ----------
$1,880,413 $1,872,939
========== ==========
</TABLE>
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,
-------------------------
1998 1997
---- -----
<S> <C> <C>
INVESTMENT INCOME:
INCOME
Interest income on tax free municipals $ 89,599 $ 97,787
Dividend income - tax free 1,413 2,080
---------- ----------
91,012 99,867
---------- ----------
EXPENSES:
Custodial fees (Note 4) 2,081 1,908
Audit fees 2,400 2,400
Legal fees 5,755 7,087
Taxes other than income taxes 250 250
Office expense 8,613 9,751
Insurance 1,300 1,296
Filing fees 0 250
---------- ----------
20,399 22,942
INVESTMENT INCOME 70,613 76,925
Net realized gain (loss) from investment transactions 9,398 3,550
---------- ----------
INVESTMENT INCOME BEFORE FEDERAL
INCOME TAX 80,011 80,475
Less: Federal income taxes 115 113
---------- ----------
NET INVESTMENT INCOME 79,896 80,362
Less: Dividends paid 79,211 79,669
---------- ----------
UNDISTRIBUTED NET INCOME (LOSS) $ 685 $ 693
========== ==========
UNREALIZED APPRECIATION OF INVESTMENTS $ 56,453 $ 42,870
========== ==========
</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,
------------------------
1998 1997
---- ----
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Investment income - net $ 70,498 $ 76,812
Net realized gain (loss) on investments 9,398 3,550
Change in unrealized appreciation (depreciation) 13,583 13,588
------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 93,479 93,950
DISTRIBUTION TO SHAREHOLDERS FROM
NET INVESTMENT INCOME 79,211 79,669
------------ ------------
TOTAL INCREASE (DECREASE) 14,268 14,281
NET ASSETS BEGINNING OF PERIOD 1,779,997 1,765,716
------------ ------------
NET ASSETS END OF PERIOD (Including
Undistributed Net Income of $(685) and
$(693), respectively) $ 1,794,265 $ 1,779,997
============ ============
DIVIDENDS PER SHARE $ 4.17 $ 4.20
============ ============
</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,
-------------------------
1998 1997
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 79,896 $ 80,362
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 29,758 (79,228)
(Increase) Decrease in Vista New York
Tax Free Money Market Fund (37,848) 75,893
(Increase) Decrease in prepaid expenses 1 (4)
Increase (Decrease) in other current liabilities (6,336) 1,632
Realized (gain) loss from investment transactions
included in net income (9,398) (3,550)
---------- ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 56,073 75,105
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase (Decrease) in unrealized appreciation 13,583 13,588
of investments
Realized gain (loss) from investment transactions 9,398 3,550
---------- ----------
NET CASH (USED) PROVIDED BY INVESTING
ACTIVITIES 22,981 17,138
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid (79,669) (92,531)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (615) (288)
CASH - BEGINNING OF YEAR 615 903
---------- ----------
CASH - END OF YEAR $ 0 $ 615
========== ==========
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, 1998
------------------
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, 1998
------------------
(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, 1998
Unrealized Appreciation of Bonds totaled $ 56,490
Unrealized Depreciation of Bonds totaled 37
---------
Net Unrealized Appreciation of Investments $ 56,453
=========
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 $502,150 for the year ended September 30, 1998 and
$205,780 for the year ended September 30, 1996. Sales of securities exclusive of
Vista New York Tax Free Money Market Fund amounted to $548,606 for the year
ended September 30, 1998 and $143,093 for the year ended September 30, 1997.
NOTE 3 - DISTRIBUTIONS
- ----------------------
The Company distributed income of $79,211 ($4.17 per share) and $79,669 ($4.20
per share) for the years ended September 30, 1998 and 1997 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, 1998 and 1997, the Company was charged
an aggregate of $2,081 and $1,908 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, 1998
------------------
NOTE 6 - CAPITAL PER SHARE AND RELATED INFORMATION
- --------------------------------------------------
Selected data for a share of capital stock outstanding throughout the period:
YEARS ENDED SEPTEMBER 30,
-------------------------
1998 1997
---- ----
Investment income $ 4.80 $ 5.27
Operating expenses 1.08 1.21
------- -------
INVESTMENT INCOME BEFORE FEDERAL 3.72 4.06
INCOME TAX
FEDERAL INCOME TAX 0 0
------- -------
INVESTMENT INCOME - NET 3.72 4.06
Dividends to shareholders 4.18 4.20
------- -------
(.46) (.14)
Realized and unrealized gain (loss)
on investments - net 1.21 .89
------- -------
CHANGE IN NET VALUE .75 .75
NET ASSET VALUE:
Beginning of period 93.88 93.13
------- -------
End of period $ 94.63 $ 93.88
======= =======
Ratio of operating expenses to
average net assets .011% .0127%
Ratio of investment income net to
average net assets .050% .0552%
Portfolio turnover 27.7% 8.1%
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, 1998
------------------
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>
Akron N Y Cent Sch Dist G/O
DD 09/01/95 5.4% Due 6/1/01 $ 50,000 $ 51,054 $ 53,155
Akron N Y Cent Sch Dist G/O
DD 09/01/95 5.4% Due 6/1/02 (FSA) 45,000 46,074 48,394
Chicago Cnty Minn Hsg & Redev Auth
DD 12/01/97 4.7% Due 02/01/08
Call MSF OID Lease Rev 80,000 80,544 82,415
Clayton Cnty GA Hsg
Auth, Multifa
DD 07/01/97 4.55% Due 07/01/02
Pointe Clear Apts Proj 50,000 50,000 51,388
Dade Cnty Fla Res Recovery FAC
DD 09/01/96 5.0% Due 10/01/03
REF (AMBAC) Rev 90,000 89,626 96,544
District Columbia G/O
DD 05/01/93 5.625% Due 6/1/02
Ref-A OID 50,000 50,128 53,230
District Columbia
DD 06/01/93 6.0% Due 06/01/09
Call Unrefunded Bal-E-Capmac-ITC 50,000 51,423 55,757
District Columbia G/O
DD 05/01/93 5.625% Due 6/1/02
Ref- Ser A (FSA- CR) 90,000 91,759 96,911
-9-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1998
------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Fenton Mo Pub Auth Leasehold Rev
DD 12/15/97 4.750% Due 01/01/07
OID 80,000 79,725 83,480
Grand Folks N D Health Care Sys
DD 06/01/97 5.5% Due 08/15/07
Altru Health Sys Oblig Group 80,000 83,752 88,060
Greenville Hosp Sys S C Hosp Fac
DD 03/01/96 4.9% Due 05/01/03
Ser B 95,000 95,002 100,850
Idaho Hlth Facs Auth Rev
DD 02/01/88 7.6% Due 05/01/05
Call Ref- Bannock Reg Med Ctr Pro 20,000 20,084 21,105
Iowa Student Ln Liquidity Corp.
DD 02/15/91 6.6% Due 12/01/00
Student Ln Rev Ser C Ambac 90,000 92,204 97,040
Los Angeles Cnty Calif Pub Wksfi
DD 08/01/93 4.6% Due 03/01/02
Ref-Cap Construction 100,000 98,856 103,473
Manatee Cnty Fla Hsg Fin Auth Rev
DD 06/01/85 9.125% Due 06/01/16
Callable Sgl Fam Series A FGIC 5,000 5,047 5,162
Maryland St Cmnty Dev Admin Dept.
DD 06/01/97 4.6% Due 1/01/03
Hsg-Ser A 30,000 30,000 30,879
Mississippi Dev Bk Spl Oblig
DD 11/01/97 4.8% Due 11/01/08
Call Desoto Cnty Convention Ctr 30,000 30,000 31,979
-10-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1998
------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Nebraska Invt Fin Auth Sing/Famil
DD 09/01/97 5.0% Due 9/01/07
Ser D 50,000 49,998 52,101
Nebraska Pub Pwr Dist Rev
DD 03/01/93 4.5% Due 1/1/00
Ref-Pwr Supply Sys-Ser B 70,000 69,314 71,523
New Jersey Economic Dev Auth Rev
DD 06/01/94 5.4% Due 2/1/06
Call Peddie Sch Proj-Ser A 60,000 60,713 64,270
New York City G/O
DD 06/11/98 4.5% Due 05/15/05
Series I 25,000 25,000 25,888
New York St Dorm Auth Revs
DD 07/01/98 4.375% Due 07/01/05
Ser 2 OID 60,000 60,000 61,617
New York St Hsg Fin Agy
DD 01/01/71 6.5% Due 11/01/99
Call Non Profit Hsg 25,000 24,944 26,236
New York St Environmental Facs
DD 07/15/89 7.5% Due 10/01/12
Call Huntington Proj-Ser A Amt 50,000 50,000 54,341
-11-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1998
------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Pennsylvania St Tpk Comm Rev
DD 08/01/92 5.7% Due 12/01/06
Call OID Ser (FGIC) 25,000 26,249 27,545
Philadelphia PA Auth For Indl
DD 01/01/98 4.750% Due 06/15/06
Call Franklin Institute PJ 80,000 80,000 82,248
Pierce County Wash Swr
DD 07/01/93 5.2% DUE 02/01/05
Call Ref & Impt OID 25,000 25,605 26,287
Sarasota Cnty Fla Util Sys Rev
DD 01/01/93 5.7% Due 10/01/05
Call Ref FGIC OID 15,000 15,846 16,670
Sedalia Mo Hosp Rev
DD 07/01/97 4.6% Due 03/01/03
Call Bothwell Regl Health Ctr 50,000 50,000 51,415
South Brunswick Twp NJ
DD 08/01/93 5.0% Due 08/01/06
Call Ref G/O OID 20,000 20,265 21,401
-12-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1998
------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Texas Nat'l Research Lab Commn
DD 12/01/91 6.0% Due 12/01/98
Superconducting Collider (ETM) 75,000 74,995 76,842
Trinity Riv Auth Tx Big Bear
DD 02/15/96 4.5% Due 02/01/03
Ref-Wastewtr Sys Contract MBIA 75,000 75,000 77,348
---------- ---------- ----------
TOTAL INVESTMENT - 100.02% $1,740,000 $1,753,207 1,835,554
========== ==========
OTHER ASSETS LESS LIABILITIES - (.02%) (41,289)
----------
NET ASSETS - 100% $1,794,265
==========
NET ASSET VALUE PER SHARE $ 94.63
==========
OUTSTANDING SHARES AT SEPTEMBER 30, 1998 18,960
==========
</TABLE>
* Includes accrued interest
-13-
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FISCAL YEAR END 9/30/1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> SEP-30-1998<F1>
<INVESTMENTS-AT-COST> 1,753,836<F2>
<INVESTMENTS-AT-VALUE> 1,835,554<F3>
<RECEIVABLES> 0
<ASSETS-OTHER> 44,859
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,880,413
<PAYABLE-FOR-SECURITIES> 79,211<F4>
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,937
<TOTAL-LIABILITIES> 86,148
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 167,232<F5>
<SHARES-COMMON-STOCK> 18,960
<SHARES-COMMON-PRIOR> 18,960
<ACCUMULATED-NII-CURRENT> 685
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 56,453
<NET-ASSETS> 1,794,265
<DIVIDEND-INCOME> 1,413
<INTEREST-INCOME> 89,599
<OTHER-INCOME> 0
<EXPENSES-NET> 20,399
<NET-INVESTMENT-INCOME> 70,613
<REALIZED-GAINS-CURRENT> 9,398
<APPREC-INCREASE-CURRENT> 13,583
<NET-CHANGE-FROM-OPS> 93,459
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 79,211
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 14,268
<ACCUMULATED-NII-PRIOR> 685
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 20,399
<AVERAGE-NET-ASSETS> 1,810,454
<PER-SHARE-NAV-BEGIN> 93.88
<PER-SHARE-NII> 3.72
<PER-SHARE-GAIN-APPREC> 1.21
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 4.18
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 94.63
<EXPENSE-RATIO> .050
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 ARE
INCORPORATED HEREIN BY REFERENCE
<F2>INVESTMENTS AT COST IS AMORTIZED COST
<F3>INVESTMENTS AT VALUE INCLUDES ACCRUED INTEREST
<F4>INCLUDES DIV PAY
<F5>INCLUDES CAPITAL STOCK AND PAID IN CAPITAL
</FN>
</TABLE>
