LENED, INC.
-----------
REPORT TO STOCKHOLDERS
----------------------
FINANCIAL STATEMENTS
--------------------
MARCH 31, 1998
--------------
<PAGE>
LENED, INC.
-----------
REPORT TO STOCKHOLDERS
----------------------
FINANCIAL STATEMENTS
--------------------
TABLE OF CONTENTS
-----------------
MARCH 31, 1998
--------------
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>
STUART M. FRIED
CERTIFIED PUBLIC ACCOUNTANT
11 TWIN BROOK ROAD
WEST CALDWELL, N.J. 07006
----
(973) 226-4006
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, 1998,
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,
1998 has been derived from and does not include all of the disclosures
contained in the financial statements for the year ended September 30, 1997.
Those financial statements were audited by us in our report thereon, dated
November 10, 1997, 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, 1998 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, 1998 for them to be in conformity with
generally accepted accounting principles.
/s/ Stuart M. Fried
--------------------
STUART M. FRIED, CPA
W. Caldwell, New Jersey
May 13, 1998
<PAGE>
LENED, INC.
-----------
STATEMENTS OF ASSETS, LIABILITIES
---------------------------------
AND CAPITAL SECURITIES
----------------------
<TABLE>
<CAPTION>
ASSETS
------
6 MONTHS YEAR ENDED
ENDED 3/31/98 9/30/97
------------- ----------
(Unaudited)
<S> <C> <C>
INVESTMENT IN MUNICIPAL BONDS,
with accrued interest, at fair market
value (amortized cost $1,749,539
and $1,793,110) (Note 1) $1,814,054 $1,865,312
Cash 0 615
Investment in Vista New York Tax-Free
Money Market Fund (3.03% avg. interest rate) 10,493 5,715
Prepaid expenses 649 1,297
---------- ----------
$1,825,196 $1,872,939
========== ==========
LIABILITIES AND CAPITAL SECURITIES
----------------------------------
LIABILITIES
Dividends payable $ 0 $ 79,669
Other current liabilities 6,580 13,273
---------- ----------
6,580 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) 43,679 693
Unrealized appreciation of investments 37,810 42,870
---------- ----------
Total stockholders' equity (equivalent to
$95.92 per share at 3/31/98 and $93.88
per share at 9/30/97) 1,818,616 1,779,997
---------- ----------
$1,825,196 $1,872,939
========== ==========
</TABLE>
See accountants' review report and notes to financial statements.
-2-
<PAGE>
LENED, INC.
-----------
STATEMENTS OF OPERATIONS,
-------------------------
UNDISTRIBUTED NET INCOME (LOSS)
-------------------------------
<TABLE>
<CAPTION>
6 MONTHS YEAR ENDED
ENDED 3/31/98 9/30/97
------------- ----------
(Unaudited)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest income on tax free municipals $ 45,539 $ 97,787
Dividend income - tax free 952 2,080
-------- --------
46,491 99,867
-------- --------
EXPENSES:
Custodial fees (Note 4) 1,126 1,908
Audit fees 500 2,400
Legal fees 4,350 7,087
Taxes other than income taxes 250 250
Office expense 4,401 9,751
Insurance 648 1,296
Filing fees 125 250
-------- --------
11,400 22,942
INVESTMENT INCOME 35,091 76,925
Net realized gain (loss) from
investment transactions 8,645 3,550
-------- --------
INVESTMENT INCOME BEFORE
FEDERAL INCOME TAX 43,736 80,475
Less: Federal income taxes 57 113
-------- --------
NET INVESTMENT INCOME 43,679 80,362
Less: Dividends paid 0 79,669
-------- --------
UNDISTRIBUTED NET INCOME (LOSS) $ 43,679 $ 693
======== ========
UNREALIZED APPRECIATION OF INVESTMENTS $ 37,810 $ 42,870
======== ========
</TABLE>
See accountants' review report and notes to financial statements.
-3-
<PAGE>
LENED, INC.
-----------
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------
<TABLE>
<CAPTION>
6 MONTHS YEAR ENDED
ENDED 3/31/98 9/30/97
------------- ----------
(Unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Investment income - net $ 35,034 $ 76,812
Net realized gain (loss) on investments 8,645 3,550
Change in unrealized appreciation
(depreciation) (5,060) 13,588
----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 38,619 93,950
DISTRIBUTION TO SHAREHOLDERS FROM
NET INVESTMENT INCOME 0 79,669
----------- -----------
TOTAL INCREASE (DECREASE) 38,619 14,281
NET ASSETS BEGINNING OF PERIOD 1,779,997 1,765,716
----------- -----------
NET ASSETS END OF PERIOD (Including
Undistributed Net Income of $43,679 and
$693 respectively $1,818,616 $1,779,997
=========== ===========
DIVIDENDS PER SHARE $ 0 $ 4.20
=========== ===========
</TABLE>
See accountants' review report and notes to financial statements.
-4-
<PAGE>
LENED, INC.
-----------
STATEMENTS OF CASH FLOWS
------------------------
INCREASE (DECREASE) IN CASH
---------------------------
<TABLE>
<CAPTION>
6 MONTHS YEAR ENDED
ENDED 3/31/98 9/30/97
------------- ----------
(Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 43,679 $ 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 51,258 (79,228)
(Increase) Decrease in Vista New York
Tax Free Money Market Fund (4,778) 75,893
(Increase) Decrease in prepaid expenses 648 (4)
Increase (Decrease) in other current liabilities (6,693) 1,632
Realized (gain) loss from investment transactions
included in net income (8,645) (3,550)
--------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 75,469 75,105
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase (Decrease) in unrealized appreciation
of investments (5,060) 13,588
Realized gain (loss) from investment transactions 8,645 3,550
--------- ---------
NET CASH (USED) PROVIDED BY INVESTING
ACTIVITIES 3,585 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 PERIOD 615 903
--------- ---------
CASH - END OF PERIOD $ 0 $ 615
========= =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Income taxes $ 361 $ 250
</TABLE>
See accountants' review report and notes to financial statements.
-5-
<PAGE>
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
MARCH 31, 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, and 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>
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
MARCH 31, 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 March 31, 1998
Unrealized Appreciation of Bonds totaled $ 38,337
Unrealized Depreciation of Bonds totaled 527
---------
Net Unrealized Appreciation of Investments $ 37,810
=========
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 $417,150 for the six months ended March 31, 1998 and
$205,780 for the year ended September 30, 1997. Sales of securities exclusive
of Vista New York Tax Free Money Market Fund amounted to $459,261 for the six
months ended March 31, 1998 and $143,093 for the year ended September 30,
1997.
NOTE 3 - DISTRIBUTIONS
- ----------------------
The Company distributed income of $79,669 ($4.20 per share) for the year ended
September 30, 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 six months ended March 31, 1998, the Company was charged an
aggregate of $1,126, and $1,908 for the year ended September 30, 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.
-7-
<PAGE>
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
MARCH 31, 1998
--------------
NOTE 6 - CAPITAL PER SHARE AND RELATED INFORMATION
- --------------------------------------------------
Selected data for a share of capital stock outstanding throughout the period:
<TABLE>
<CAPTION>
6 MONTHS YEAR ENDED
ENDED 3/31/98 9/30/97
------------- ----------
<S> <C> <C>
Investment income $ 2.45 $ 5.27
Operating expenses .60 1.21
-------- --------
INVESTMENT INCOME BEFORE FEDERAL 1.85 4.06
INCOME TAX
FEDERAL INCOME TAX 0 0
-------- --------
INVESTMENT INCOME - NET 1.85 4.06
Dividends to shareholders 0 4.20
-------- --------
1.85 (.14)
Realized and unrealized gain (loss)
on investments - net .19 .89
-------- --------
CHANGE IN NET VALUE 2.04 .75
NET ASSET VALUE:
Beginning of period 93.88 93.13
-------- --------
End of period $ 95.92 $ 93.88
======== ========
Ratio of operating expenses to
average net assets .0064% .0127%
Ratio of investment income net to
average net assets .0259% .0552%
Portfolio turnover 23.3% 8.1%
Number of shares outstanding at end
of period 18,960 18,960
</TABLE>
See Accountants' review report.
-8-
<PAGE>
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
MARCH 31, 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>
Cusip #010014AS7
Akron Central School Dist, N.Y.
A General Obligation (FSA)
5.4% Due 6/1/2001 $ 50,000 $ 51,252 $ 52,910
Cusip #010014AT5
Akron Central School District, N.Y.
A General Obligation (FSA)
5.4% Due 6/1/2002 45,000 46,220 47,997
Cusip #170091CS9
Chisago Cnty Minn Hsg & Redev Auth
Call Msf OID Lease Rev
DD 12/01/97 4.700% Due 02/01/08 80,000 80,581 81,875
Cusip #184160G2G
Clayton Cnty GA Hsg
Autu, Multi Fa
(Pointe Clear Apts Proj)
4.5% Due 7/01/2002 50,000 50,000 51,001
Cusip #23354NAG8
Dade County FLA Res Recovery
FAC 5.0% Due 10/1/03
REFC (AMBAL) Rev 90,000 89,588 95,351
Cusip #254760YL9
District of Columbia A General
Obligation Series A (RFDG)
5.625% Due 6/1/2002 50,000 50,146 52,953
Cusip #2547620M2
District Columbia G/O
5.625% Due 6/1/02
Ref-Ser A-(FSA-CR) 90,000 91,999 96,337
See accountants' review report.
-9-
<PAGE>
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
MARCH 31, 1998
--------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Cusip #2547603MI
District of Columbia A General
Obligation (Series A) 5.625%
Due 6/1/2009 50,000 51,490 55,198
Cusip #314599AJO
Fenton Mo Pub Auth Leasehold Rev
OID
DD 12/15/97 4.750% Due 01/01/07 80,000 79,708 81,444
Cusip #38546WAL4
Grand Folks ND Health Care Sys
Altru Health Sys Oblig Group
DD 06/01/97 5.500% Due 08/15/07 80,000 83,961 85,852
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 95,002 99,296
Cusip #451295HW2
Idaho Health Facilities Authority
Refunding Revenue
(Bannock Regl Med Ctr Proj)
7.6% Due 5/1/2003 20,000 20,090 21,077
Cusip #462590BF6
Iowa Student Loan Liquidity Corp.
Student
Loan Revenue (Insured by Ambac)
6.6% Due 12/1/2000 90,000 92,713 97,462
See accountants' review report.
-10-
<PAGE>
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
MARCH 31, 1998
--------------
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 98,689 102,161
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 5,047 5,160
Cusip #57419JNG4
Maryland Cnty FLA Hsg
Fin Auth Rev 4.6% Due 1/01/2003 30,000 30,000 30,806
Cusip #605343GM8
Mississippi Dev Bk Spl Oblig
Call Desoto Cnty Convention Ctr
DD 11/01/97 4.800% Due 11/01/08 30,000 30,000 31,153
Cusip #63967CRH7
Nebraska Investment Finance
Authority, Sing Famil
5.0% Due 9/01/2007 50,000 49,998 51,260
See accountants' review report.
-11-
<PAGE>
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
MARCH 31, 1998
--------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Cusip #639683J51
Nebraska Public Power
District, NEB Refunding
Power Supply System - Series
4.5% Due 1/1/2000 70,000 69,039 71,487
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 19,946 20,973
Cusip #645905PE4
New Jersey Economic
Dev Auth Rev
5.4% Due 2/1/06
Call Preddie Sch Proj
Ser-A 60,000 60,761 63,342
Cusip #649655DH7
New York City, N.Y.
A General Obligation
8% Due 8/1/2010-98NC 20,000 20,000 20,850
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 55,089
See accountants' review report.
-12-
<PAGE>
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
MARCH 31, 1998
--------------
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 24,918 26,228
Cusip #6498814H9
New York State Medical Care Facilities
Finance Agency Revenue
7% Due 8/15/1998-NC 40,000 40,088 40,840
Cusip #709223ML2
Pennsylvania St Tpk Commn Rev
Call OID Ser o (FGIC)
DD 08/01/92 5.700% Due 12/01/06 25,000 26,399 27,239
Cusip #717818V34
Philadelphia Pa Auth For Indl
Call Franklin Institute PJ
DD 01/01/98 4.750% Due 06/15/06 80,000 80,000 80,620
Cusip #803321DL9
Sarasota Cnty Fla Util Sys Rev
Call Ref Fgic OID
DD 01/01/93 5.700% Due 10/01/05 15,000 15,951 16,507
Cusip #720653FV1
Pierce County WASH Swr
5.20% DUE 2/01/2005 25,000 25,676 25,912
Cusip #815188AZO
Sedalia Mo Hosp Rev
(Botuwell Regl Health Ctr)
4.6% Due 3/01/2003 50,000 50,000 50,760
See accountants' review report.
-13-
<PAGE>
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
MARCH 31, 1998
--------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- ------------
Cusip #836785PQ2
South Brunswick Twp NJ
Call Ref G/O OID
DD 08/01/93 5.000% due 08/01/06 20,000 20,296 20,911
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 77,671
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 76,332
---------- ---------- ----------
TOTAL INVESTMENT - 99.70% $1,735,000 $1,749,539 1,814,054
========== ==========
OTHER ASSETS LESS LIABILITIES - (.03%) 4,562
----------
NET ASSETS - 100% $1,818,616
==========
NET ASSET VALUE PER SHARE $ 95.92
==========
OUTSTANDING SHARES AT MARCH 31, 1998 18,960
==========
</TABLE>
* Includes accrued interest
See accountants' review report.
-14-
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE SIX
MONTHS ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998<F1>
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 1,749,539<F2>
<INVESTMENTS-AT-VALUE> 1,814,054<F3>
<RECEIVABLES> 0
<ASSETS-OTHER> 11,142
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,825,196
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,580
<TOTAL-LIABILITIES> 6,580
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 167,232
<SHARES-COMMON-STOCK> 18,960
<SHARES-COMMON-PRIOR> 18,960
<ACCUMULATED-NII-CURRENT> 43,679
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 37,810
<NET-ASSETS> 1,818,616
<DIVIDEND-INCOME> 952
<INTEREST-INCOME> 45,539
<OTHER-INCOME> 0
<EXPENSES-NET> 11,400
<NET-INVESTMENT-INCOME> 35,091
<REALIZED-GAINS-CURRENT> 8,645
<APPREC-INCREASE-CURRENT> (5,060)
<NET-CHANGE-FROM-OPS> 38,619
<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> 38,619
<ACCUMULATED-NII-PRIOR> 43,679
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,400
<AVERAGE-NET-ASSETS> 1,792,765
<PER-SHARE-NAV-BEGIN> 93.88
<PER-SHARE-NII> 1.85
<PER-SHARE-GAIN-APPREC> .19
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 95.92
<EXPENSE-RATIO> .026
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>NOTES TO FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED MARCH 31, 1998 ARE
INCORPORATED HEREIN BY REFERENCE.
<F2>INVESTMENTS AT COST IS AMORTIZED COST.
<F3>INVESTMENTS AT VALUE INCLUDES ACCRUED INTEREST RECEIVABLE.
</FN>
</TABLE>
