STUART M. FRIED, CPA
LENED, INC.
-----------
REPORT TO STOCKHOLDERS
----------------------
FINANCIAL STATEMENTS
--------------------
YEARS ENDED SEPTEMBER 30, 1999 AND 1998
---------------------------------------
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
REPORT TO STOCKHOLDERS
----------------------
FINANCIAL STATEMENTS
--------------------
TABLE OF CONTENTS
-----------------
YEARS ENDED SEPTEMBER 30, 1999 AND 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 6-14
<PAGE>
STUART M. FRIED
CERTIFIED PUBLIC ACCOUNTANT
11 TWIN BROOK ROAD
WEST CALDWELL, NEW JERSEY 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, NY
We have audited the accompanying statements of assets, liabilities and capital
securities of Lened Inc. as of September 30, 1999 and 1998, 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,
1999 and 1998, and the results of its operations and the changes in its net
assets 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 13, 1999
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
STATEMENTS OF ASSETS, LIABILITIES
---------------------------------
AND CAPITAL SECURITIES
----------------------
ASSETS
------
SEPTEMBER 30,
---------------------------
1999 1998
---- ----
INVESTMENT IN MUNICIPAL BONDS,
with accrued interest - at fair market
value (amortized cost $1,785,392 and
$1,753,856) (Note 1) $ 1,808,294 $ 1,835,554
Cash 9 0
Investment in Vista New York Tax-Free
Money Market Fund (2.74% avg. Interest rate) 6,074 43,563
Prepaid expenses 1,293 1,296
----------- -----------
$ 1,815,670 $ 1,880,413
=========== ===========
LIABILITIES AND CAPITAL SECURITIES
----------------------------------
LIABILITIES:
Dividends payable $ 68,900 79,211
Other current liabilities 11,658 6,937
----------- -----------
80,558 86,148
----------- -----------
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 1,570,581 1,569,895
Undistributed net income (loss) 497 685
Unrealized appreciation of investments (3,198) 56,453
----------- -----------
Total stockholders' equity (equivalent to
$91.51 per share at 9/30/99 and $94.63
per share at 9/30/98) 1,735,112 1,794,265
----------- -----------
$ 1,815,670 $ 1,880,413
=========== ===========
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)
-------------------------------
YEARS ENDED SEPTEMBER 30,
-------------------------
1999 1998
---- ----
INVESTMENT INCOME:
INCOME
Interest income on tax free municipals $ 87,112 $ 89,599
Dividend income - tax free 674 1,413
-------- --------
87,786 91,012
-------- --------
EXPENSES:
Custodial fees (Note 4) 1,819 2,081
Audit fees 2,400 2,400
Legal fees 2,825 5,755
Taxes other than income taxes 250 250
Office expense 9,665 8,613
Insurance 1,303 1,300
Filing fees 250 0
-------- --------
18,512 20,399
-------- --------
INVESTMENT INCOME 69,274 70,613
Net realized gain (loss) from investment transactions 317 9,398
-------- --------
INVESTMENT INCOME BEFORE FEDERAL
INCOME TAX 69,591 80,011
Less: Federal income taxes 194 115
NET INVESTMENT INCOME 69,397 79,896
Less: Dividends paid 68,900 79,211
-------- --------
UNDISTRIBUTED NET INCOME (LOSS) $ 497 $ 685
======== ========
UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS $ (3,198) $ 56,453
======== ========
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
-----------------------------------
YEARS ENDED SEPTEMBER 30,
-------------------------
1999 1998
---- ----
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Investment income - net $ 69,080 $ 70,498
Net realized gain (loss) on investments 317 9,398
Change in unrealized appreciation (depreciation) (59,650) 13,583
----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 9,747 93,479
DISTRIBUTION TO SHAREHOLDERS FROM
NET INVESTMENT INCOME 68,900 79,211
----------- -----------
TOTAL INCREASE (DECREASE) (59,153) 14,268
NET ASSETS BEGINNING OF PERIOD 1,794,265 1,779,997
----------- -----------
NET ASSETS END OF PERIOD (Including
Undistributed Net Income of $(497) and
$(685), respectively) $ 1,735,112 $ 1,794,265
=========== ===========
DIVIDENDS PER SHARE $ 3.62 $ 4.17
=========== ===========
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
---------------------------
YEARS ENDED SEPTEMBER 30,
-------------------------
1999 1998
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 69,397 $ 79,896
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 27,260 29,758
(Increase) Decrease in Vista New York
Tax Free Money Market Fund 37,489 (37,848)
(Increase) Decrease in prepaid expenses 3 1
Increase (Decrease) in other current liabilities 4,721 (6,336)
Realized (gain) loss from investment transactions
included in net income (317) (9,398)
--------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 138,553 56,073
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase (Decrease) in unrealized appreciation
of investments (59,650) 13,583
Realized gain (loss) from investment transactions 317 9,398
--------- ---------
NET CASH (USED) PROVIDED BY INVESTING
ACTIVITIES (59,333) 22,981
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid (79,211) (79,669)
--------- ---------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 9 (615)
CASH - BEGINNING OF YEAR 0 615
--------- ---------
CASH - END OF YEAR $ 9 $ 0
========= =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Income taxes $ 250 $ 250
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, 1999
-------------------
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, 1999
------------------
(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, 1999
Unrealized Appreciation of Bonds totaled $ 12,887
Unrealized Depreciation of Bonds totaled 16,085
--------
Net Unrealized Depreciation of Investments $ (3,198)
========
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 $129,806 for the year ended September 30, 1999 and
$502,150 for the year ended September 30, 1998. Sales of securities exclusive of
Vista New York Tax Free Money Market Fund amounted to $95,400 for the years
ended September 30, 1999 and $548,606 for the year ended September 30, 1998.
NOTE 3 - DISTRIBUTIONS
- ----------------------
The Company distributed income of $68,900 ($3.63 per share) and $79,211 ($4.17
per share) for the years ended September 30, 1999 and 1998 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, 1999 and 1998, the Company was charged an
aggregate of $1,819 and $2,081respectively.
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, 1999
-------------------
NOTE 6 - YEAR 2000 READINESS (UNAUDITED)
- ----------------------------------------
Many existing computer systems and applications, and other control devices, use
only two digits to identify a year in the date field, without considering the
impact of the upcoming changes in the century. As a result, such systems and
applications could fail or create erroneous results unless corrected so they can
process data related to the year 2000. The Company relies on its systems,
applications and devices in operating and monitoring all major aspects of its
business, including financial systems, infrastructure, embedded computer chips,
networks, and telecommunications equipment. The Company also relies, directly
and indirectly, on external systems of other companies and organizations such as
suppliers, creditors, financial service organizations and governmental entities
for accurate exchange of data. The Company's current estimate is the costs
associated with the year 2000 issue will not have a material adverse effect on
the results of operations or financial position of the Company in any given
year. However, despite the Company's efforts to address the year 2000 impact on
its internal systems, the Company has not fully identified such impact or
whether it can resolve it without disruption of its activities and without
incurring significant expense. In addition, even if the internal systems of the
Company are not materially affected by the year 2000 issue, the Company could be
affected through disruption in the operation of the enterprises with which the
Company interacts.
-8-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1999
-------------------
NOTE 7 - CAPITAL PER SHARE AND RELATED INFORMATION
- --------------------------------------------------
Selected data for a share of capital stock outstanding throughout the period:
YEARS ENDED SEPTEMBER 30,
-------------------------
1999 1998
---- ----
Investment income $ 4.63 $ 4.80
Operating expenses .98 1.08
----------- -----------
INVESTMENT INCOME BEFORE FEDERAL 3.65 3.72
INCOME TAX
FEDERAL INCOME TAX .01 0
----------- -----------
INVESTMENT INCOME - NET 3.64 3.72
Dividends to shareholders 3.63 4.18
----------- -----------
.01 (.46)
Realized and unrealized gain (loss)
on investments - net (3.13) 1.21
----------- -----------
CHANGE IN NET VALUE (3.12) .75
NET ASSET VALUE:
Beginning of period 94.63 93.88
----------- -----------
End of period $ 91.51 $ 94.63
=========== ===========
Ratio of operating expenses to
average net assets .010 .011%
Ratio of investment income net to
average net assets .049% .050%
Portfolio turnover 5.29% 27.7%
Number of shares outstanding at end
of period 18,960 18,960
-9-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1999
-------------------
NOTE 8 - 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 $ 50,659 $ 51,954
Akron N Y Cent Sch Dist G/O
DD 09/01/95 5.4% Due 6/1/02 (FSA) 45,000 45,781 47,123
Chicago Cnty Minn Hsg & Redev Auth
DD 12/01/97 4.7% Due 02/01/08
Call MSF OID Lease Rev 80,000 80,470 79,645
Clayton Cnty GA Hsg
Auth, Multifa
DD 07/01/97 4.55% Due 07/01/02
Pointe Clear Apts Proj 50,000 50,000 50,383
Dade Cnty Fla Res Recovery FAC
DD 09/01/96 5.0% Due 10/01/03
REF (AMBAC) Rev 90,000 89,701 93,618
District Columbia G/O
DD 05/01/93 5.625% Due 6/1/02
Ref-A OID 50,000 50,093 52,120
District Columbia
DD 06/01/93 6.0% Due 06/01/09
Call Unrefunded Bal-E-Capmac-ITC 50,000 51,290 53,539
District Columbia G/O
DD 05/01/93 5.625% Due 6/1/02
Ref- Ser A (FSA- CR) 90,000 91,279 94,293
-10-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1999
-------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- -------------
Falcon Heights Minn G/O
DD 06/01/99 4.10% Due 02/01/05
Impt - SER A 25,000 25,000 24,585
Fenton Mo Pub Auth Leasehold Rev
DD 12/15/97 4.750% Due 01/01/07
OID 80,000 79,758 78,416
Grand Folks N D Health Care Sys
DD 06/01/97 5.5% Due 08/15/07
Altru Health Sys Oblig Group 80,000 83,333 83,175
Greenville Hosp Sys S C Hosp Fac
DD 03/01/96 4.9% Due 05/01/03
Ser B 95,000 95,002 97,806
Iowa Student Ln Liquidity Corp.
DD 02/15/91 6.6% Due 12/01/00
Student Ln Rev Ser C Ambac 90,000 91,187 94,472
Los Angeles Cnty Calif Pub Wksfi
DD 08/01/93 4.6% Due 03/01/02
Ref-Cap Construction 100,000 99,191 101,681
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 5,044 5,159
Maryland St Cmnty Dev Admin Dept.
DD 06/01/97 4.6% Due 1/01/03
Hsg-Ser A 30,000 30,000 30,370
Mississippi Dev Bk Spl Oblig
DD 11/01/97 4.8% Due 11/01/08
Call Desoto Cnty Convention Ctr 30,000 30,000 30,208
-11-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1999
-------------------
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 49,596
Nebraska Pub Pwr Dist Rev
DD 03/01/93 4.5% Due 1/1/00
Ref-Pwr Supply Sys-Ser B 70,000 69,863 70,936
New Jersey Economic Dev Auth Rev
DD 06/01/94 5.4% Due 2/1/06
Call Peddie Sch Proj-Ser A 60,000 60,615 61,859
New Jersey St EDL Facs
Auth Rev. DD 06/15/93
5.375% Due 07/01/05
Call OID Ser A 30,000 30,551 30,614
New York City G/O
DD 06/11/98 4.5% Due 05/15/05
Series I 25,000 25,000 24,982
New York St Dorm Auth Revs
DD 07/01/98 4.375% Due 07/01/05
Ser 2 OID 60,000 60,000 58,899
New York St Hsg Fin Agy
DD 01/01/71 6.5% Due 11/01/99
Call Non Profit Hsg 25,000 24,996 25,733
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 52,880
-12-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1999
-------------------
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 25,949 26,435
Philadelphia PA Auth For Indl
DD 01/01/98 4.750% Due 06/15/06
Call Franklin Institute PJ 80,000 80,000 78,448
Pierce County Wash Swr
DD 07/01/93 5.2% DUE 02/01/05
Call Ref & Impt OID 25,000 25,462 25,458
Port Houston Auth Tex
Harris DD 10/01/98 4.0%
Due 10/01/06 OID 6/0
Amt. SER-A 75,000 74,326 71,651
Sarasota Cnty Fla Util Sys Rev
DD 01/01/93 5.7% Due 10/01/05
Call Ref FGIC OID 15,000 15,634 16,143
Sedalia Mo Hosp Rev
DD 07/01/97 4.6% Due 03/01/03
Call Bothwell Regl Health Ctr 50,000 50,000 50,175
South Brunswick Twp NJ
DD 08/01/93 5.0% Due 08/01/06
Call Ref G/O OID 20,000 20,210 20,336
-13-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
-----------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 1999
-------------------
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- -------------
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 75,602
---------- ---------- ----------
TOTAL INVESTMENT - 100.04% $1,775,000 $1,785,392 1,808,294
========== ========== ==========
OTHER ASSETS LESS LIABILITIES - (.04%) (73,182)
==========
NET ASSETS - 100% $1,735,112
==========
NET ASSET VALUE PER SHARE $ 91.51
==========
OUTSTANDING SHARES AT SEPTEMBER 30, 1999 18,960
==========
</TABLE>
* Includes accrued interest
-14-
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FISCAL YEAR ENDED 09/30/1999 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1999<F1>
<PERIOD-START> OCT-01-1998
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 1785392<F2>
<INVESTMENTS-AT-VALUE> 1808294<F3>
<RECEIVABLES> 0
<ASSETS-OTHER> 7376
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1815670
<PAYABLE-FOR-SECURITIES> 68900<F4>
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11658
<TOTAL-LIABILITIES> 80558
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 167232<F5>
<SHARES-COMMON-STOCK> 18960
<SHARES-COMMON-PRIOR> 18960
<ACCUMULATED-NII-CURRENT> 497
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (3198)
<NET-ASSETS> 1735112
<DIVIDEND-INCOME> 674
<INTEREST-INCOME> 87112
<OTHER-INCOME> 0
<EXPENSES-NET> 18512
<NET-INVESTMENT-INCOME> 69274
<REALIZED-GAINS-CURRENT> 317
<APPREC-INCREASE-CURRENT> (59650)
<NET-CHANGE-FROM-OPS> 9747
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 68900
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (59153)
<ACCUMULATED-NII-PRIOR> 497
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 18512
<AVERAGE-NET-ASSETS> 1804738
<PER-SHARE-NAV-BEGIN> 94.63
<PER-SHARE-NII> 3.64
<PER-SHARE-GAIN-APPREC> (3.13)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 3.63
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 91.51
<EXPENSE-RATIO> 0.49
<FN>
<F1>Notes to Financial Statements for the year ended September 30, 1999
are incorporated herein by reference
<F2>Investment at cost is amortized cost
<F3>Investment at value includes accrued interest
<F4>Payable for securities includes div pay
<F5>Paid in capital common includes capital stock
</FN>
</TABLE>
