Semi
Annual Report
October 31, 1998
Franklin Federal
Tax-Free Income Fund
Thank you for investing with Franklin Templeton. We encourage our investors to
maintain a long-term perspective and remember that all securities markets move
both up and down, as do mutual fund share prices. We appreciate your past
support and look forward to serving your investment needs in the years ahead.
(PICTURE OMITTED)
Charles B. Johnson (right),
Chairman
Franklin Federal
Tax-Free Income Fund
Thomas J. Kenny (left),
Director
Franklin Municipal
Bond Department
Contents
Shareholder Letter ............. 1
Special Feature:
Franklin's Municipal
Bond Department ................. 5
Manager's Discussion ........... 8
Performance Summaries
Class I ...................... 11
Class II ...................... 13
Financial Highlights &
Statement of Investments ........ 15
Financial Statements 48
Notes to
Financial Statements 51
Shareholder Letter
Dear Shareholder:
It's a pleasure to bring you Franklin Federal Tax-Free Income Fund's semiannual
report for the period ended October 31, 1998.
During the six-month reporting period, the Asian financial crisis spread to
other emerging markets around the world, which began to negatively affect U.S.
corporate earnings. After a six-year-long expansion, the U.S. economy started to
slow. The gross domestic product (GDP) for first quarter 1998 posted a robust
5.5% annualized rate, followed by a more moderate, 1.8% annualized rate for the
second quarter; the third quarter GDP was annualized at 3.9%. The modest growth
reflected weak Asian demand for goods and a business inventory buildup. A higher
U.S. trade deficit resulted, as Asian countries tried exporting their way out of
their economic turmoil. For the first six months of this year, America's trade
deficit was running at an annualized rate of $158 billion, far surpassing last
year's imbalance of $110 billion. Clearly, the American consumer continues to
drive our economy through relatively strong purchases of retail goods, durable
goods, and new and existing homes. Looking forward, the consumer may well
dictate the U.S. economy's direction.
During the reporting period, the yield on the benchmark 30-year U.S. Treasury
bond continued its downward trend and hit record lows. The 30-year Treasury
began the reporting period yielding 5.95% on April 30, 1998, and ended the
period yielding 5.15% on October 31, 1998. On October 5, 1998, the 30-year
Treasury yield fell to 4.70%, its all-time low. Falling yields reflected the
30-year Treasury bond's popularity among investors fleeing deteriorating foreign
stock markets. Bond price and yield move in an inverse relationship, so the
rising price of the 30-year Treasury led to a corresponding yield decline.
Responding to the global financial problems, the Federal Reserve Board (the Fed)
gradually eased monetary policy in September and October. The Fed's monetary
policy panel, the Federal Open Market Committee, twice cut the federal funds
target rate by 0.25%, to 5.00%, hoping to stimulate growth. The Fed's move
attempted to provide liquidity to the financial system, and make it easier for
major corporations to obtain favorable lending from banks. The tempered economic
activities combined with a period of benign inflation precipitated the low
interest-rate environment.
Issuers of municipal bonds took advantage of low interest rates during the
six-month period by refinancing outstanding, higher interest-rate debt.
Additionally, many municipalities experienced solid fiscal conditions due to the
strong economy. In fact, credit rating upgrades exceeded downgrades by a
four-to-one ratio. Borrowing for new projects increased, such that the supply of
new municipal bond issues in 1998 could approach record levels. Demand did not
keep pace with the increased supply, causing municipal bonds to underperform
compared with their taxable counterparts. At the end of the reporting period,
the yield on 30-year, AAA-rated, insured municipal bonds stood at 94% of the
yield on a 30-year Treasury bond, which in our opinion, creates an attractive
investment opportunity in the municipal bond market. For those investors in the
39.6% tax bracket, the taxable equivalent yield on an average municipal bond was
7.95% versus 5.15% for the 30-year Treasury bond.*
*Source: Bloomberg, October 31, 1998.
Our investment philosophy remains disciplined and focused, as we strive to offer
our shareholders high, current tax-free income and relatively low-price
volatility. The outlook for the municipal bond market should remain positive,
given the stable U.S. economy, low inflation environment, budget surplus, strong
dollar, and the economic and market uncertainty facing many of the world's
regions.
Municipal bond funds continue to be an attractive investment for those investors
seeking tax-free income as well as providing an opportunity to diversify risk in
their portfolio. We encourage you to discuss your financial goals with an
investment representative. He or she can address concerns about volatility and
help you diversify your investments and stay focused on the long term. Mutual
funds offer a level of diversification that is almost impossible for individual
investors to achieve on their own. As always, we appreciate your support,
welcome your questions and comments and look forward to serving your investment
needs in the years ahead.
Sincerely,
/s/ Charles B. Johnson
Charles B. Johnson
Chairman
Franklin Federal Tax-Free Income Fund
/s/ Thomas J. Kenny
Thomas J. Kenny
Director
Franklin Municipal Bond Department
Franklin's Municipal
Bond Department
The Municipal Bond Department Today
Franklin is currently the nation's largest
tax-free fund manager. With a team of 11 portfolio managers and 22 research
analysts, we manage more than $50 billion of municipal assets in 43 funds for
over 886,000 tax-free fund shareholder accounts.
Our Investment Philosophy
The investment objective of Franklin's tax-free funds
is to provide a high level of current, tax-free income while preserving
shareholders' capital. Following a disciplined investment approach, we conduct a
stringent credit analysis to search for what we believe to be undervalued
situations, and generally purchase current coupon bonds at prices we consider
favorable. We also acknowledge that our investors in general are risk-averse;
therefore, we do not invest in exotic derivatives, nor leverage or hedge our
portfolios, which would increase the funds' volatility.
Furthermore, Franklin positions its funds with a long-term investment horizon.
We purchase a major portion of our municipal bonds in the new-issue market and
incorporate a buy-and-hold strategy, attempting to reduce portfolio turnover and
thus, avoid capital gain distributions. We expect our funds to distribute a
relatively high level of tax-free income, and attempt to maximize risk-adjusted
total return performance.
Research and Analysis
Franklin has one of the industry's largest research departments. Along with the
portfolio managers, the research department's main mission is to identify the
best municipal buying opportunities.
Our analysts specialize in their individual fields and focus on investment
sectors, not geographic regions. With the use of proprietary databases, our
analysts can provide fast and reliable analysis to portfolio managers about any
bond issue being considered. Each year analysts visit a number of sites to get a
perspective of our financed projects. They meet with management teams and
municipal officials to discuss newly found potential opportunities and problems.
Our municipal bond team often takes on the role similar to that played by
investment bankers. Many of our competitors routinely turn away from issues that
may be unattractive on the surface; at Franklin, we pride ourselves in proposing
changes to these issues, and work to make them acceptable to our criteria. These
situations often provide us with excellent investment return.
The ability and willingness to work with issuers and our reputation for talented
analysts also make us a preferred client to receive the "first call" on issues
many brokerage houses underwrite. Lastly, our research analysts have made
significant efforts to improve municipal markets. With their involvement and
leadership, they have been working with attorney and issuer groups and industry
regulators to strengthen the municipal bond industry.
(PICTURE OMITTED)
Franklin Municipal Bond Team
Manager's Discussion
Your Fund's Goal: Franklin Federal Tax-Free Income Fund seeks to provide high,
current income exempt from regular federal income tax through a nationally
diversified portfolio consisting of municipal securities.1
GRAPHIC MATERIAL 1 OMITTED - SEE APPENDIX AT END OF DOCUMENT
For the first three quarters of 1998, the municipal bond market experienced near
record supply. As mentioned in our previous report, municipal bond insurance
covered over 50% of new issues. Benefiting from increased competition among
insurers and many municipalities' improved financial strength, municipal bond
insurance became relatively inexpensive and provided issuers improved
marketability. Many state and local governments experienced record revenues, as
well as budget surpluses, which enabled them to borrow for infrastructure
financing. As of third quarter 1998, over $220 billion of new issues came to
market, a 40% increase over 1997.
This supply weighed heavily on the municipal bond market. Although demand
remained steady in this market, it was not sufficient to meet the increased
supply, causing municipal bonds to underperform compared with their taxable
counterparts. At the same time, global market weakness caused many investors to
seek the safe haven of U.S. Treasuries, pushing their prices higher and hence,
yields lower. By the end of the reporting period, there was little difference
between long-term municipal yields and Treasury yields, as the chart on page 10
shows. On May 1, 1998, the beginning of the six-month reporting period, the Bond
Buyer Municipal 40 Index was yielding 5.37%, and the 30-year Treasury yield was
5.94%. The index ended the reporting period yielding 5.13%, while the 30-year
Treasury yield stood at 5.15%. Such a slim margin between municipal bond yields
and Treasury yields created an attractive taxable equivalent rate for the fund.
1. These dividends are generally subject to state and local income taxes, if
any. For investors subject to federal or state alternative minimum tax, a small
portion of this income may be subject to such tax. Distributions of capital
gains and of ordinary income from accrued market discount, if any, are generally
taxable.
You will find a complete listing of the fund's portfolio holdings, including
dollar value and number of shares or principal amount, beginning on page 17 of
this report.
The large supply in the municipal bond market provided Franklin Federal Tax-Free
Income Fund the flexibility to diversify its assets. Although New York and
California are generally the largest issuers of municipal bonds, we seek to
maintain a portfolio diversified among the states. During the reporting period,
the number of portfolio positions increased from 930 to 983 and included
investments in all 50 states. As opportunities arose, we added to our holdings
in Texas, Illinois, Wisconsin and Colorado. Taking advantage of ample supply in
the insured sector, we boosted the amount of insured securities to 23.5%, from
21.8%, over the six-month reporting period.
New York issues remain our largest single-state sector, at 17.1% of total
long-term investments. New York state and New York City recorded 1998
fiscal-year budget surpluses. The improved fiscal performance contributed to New
York City's municipal securities' credit rating upgrade. As of October 31, 1998,
all three national credit rating agencies now give A ratings for New York City's
obligations.
GRAPHIC MATERIAL 2 OMITTED - SEE APPENDIX AT END OF DOCUMENT
GRAPHIC MATERIAL 3 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Going forward, our outlook for Franklin Federal Tax-Free Income Fund is
positive. We believe municipal bond supply should remain robust, and we expect
relatively strong demand due to the attractiveness of municipal bonds versus
other fixed-income investments. The fund should continue to produce a steady
source of tax-free income for investors.
Please remember, this discussion reflects our views, opinions and portfolio
holdings as of October 31, 1998, the end of the reporting period. However,
market and economic conditions are changing constantly, which can be expected to
affect our strategies and the fund's portfolio composition. Although historical
performance is no guarantee of future results, these insights may help you
understand our investment and management philosophy.
Performance Summary
Class I
Franklin Federal Tax-Free Income Fund - Class I share price, as measured by net
asset value, increased 17 cents, from $12.25 on April 30, 1998, to $12.42 on
October 31, 1998. During the six-month reporting period, shareholders received
income distributions totaling 33.6 cents ($0.336) per share. Distributions will
vary based on the earnings of the fund's portfolio, and past distributions are
not predictive of future trends.
Based on an annualization of October's monthly per-share dividend of 5.6 cents
($0.056) and the maximum offering price of $12.97 on October 31, 1998, your
fund's distribution rate was 5.18%. This tax-free rate is generally higher than
the after-tax return on a comparable taxable investment. For example, an
investor in the maximum federal income tax bracket would need to earn 8.58% from
a taxable investment to match the fund's tax-free distribution rate.
GRAPHIC MATERIAL 4 OMITTED - SEE APPENDIX AT END OF DOCUMENT
GRAPHIC MATERIAL 5 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Performance
Class I
Periods ended 10/31/98
Since
Inception
1-Year 5-Year 10-Year (10/7/83)
- ----------------------------------------------------------------------------
Cumulative Total Return1 7.20% 34.88% 112.50% 271.73%
Average Annual Total Return2 2.67% 5.26% 7.36% 8.79%
Distribution Rate3 5.18%
Taxable Equivalent Distribution Rate4 8.58%
30-Day Standardized Yield5 4.03%
Taxable Equivalent Yield4 6.67%
1. Cumulative total return represents the change in value of an investment over
the periods indicated and does not include the sales charge.
2. Average annual total return represents the average annual change in value of
an investment over the periods indicated and includes the current, maximum 4.25%
initial sales charge. Prior to July 1, 1994, fund shares were offered at a lower
initial sales charge with dividends reinvested at the offering price; thus
actual total returns would differ.
3. Distribution rate is based on an annualization of October's 5.6 cent per
share monthly dividend and the maximum offering price of $12.97 on October 31,
1998.
4. Taxable equivalent distribution rate and yield assume the 1998 maximum
federal income tax rate of 39.6%.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended October 31, 1998.
Effective May 1, 1994, the fund eliminated the sales charge on reinvested
dividends and implemented a Rule 12b-1 plan, which affects subsequent
performance. All total return calculations assume reinvestment of dividends and
capital gains at net asset value. Since markets can go down as well as up,
investment return and principal value will fluctuate with market conditions, and
you may have a gain or loss when you sell your shares.
Class II
Franklin Federal Tax-Free Income Fund - Class II share price, as measured by net
asset value, increased 18 cents, from $12.24 on April 30, 1998, to $12.42 on
October 31, 1998. During the six-month reporting period, shareholders received
income distributions totaling 30.04 cents ($0.3004) per share. Distributions
will vary based on the earnings of the fund's portfolio, and past distributions
are not predictive of future trends.
Based on an annualization of October's monthly per-share dividend of 5.01 cents
($0.0501) and the maximum offering price of $12.55 on October 31, 1998, your
fund's distribution rate was 4.79%. This tax-free rate is generally higher than
the after-tax return on a comparable taxable investment. For example, an
investor in the maximum federal income tax bracket would need to earn 7.93% from
a taxable investment to match the fund's tax-free distribution rate.
GRAPHIC MATERIAL 6 OMITTED - SEE APPENDIX AT END OF DOCUMENT
GRAPHIC MATERIAL 7 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Performance
Class II
Periods ended 10/31/98
Since
Inception
1-Year 3-Year (5/1/95)
- --------------------------------------------------------------------------
Cumulative Total Return1 6.67% 21.05% 27.55%
Average Annual Total Return2 4.64% 6.22% 6.88%
Distribution Rate3 4.79%
Taxable Equivalent Distribution Rate4 7.93%
30-Day Standardized Yield5 3.61%
Taxable Equivalent Yield4 5.98%
1. Cumulative total return represents the change in value of an investment over
the periods indicated and does not include sales charges.
2. Average annual total return represents the average annual change in value of
an investment over the periods indicated and includes the 1.0% initial sales
charge and the 1.0% contingent deferred sales charge, as applicable.
3. Distribution rate is based on an annualization of October's 5.01 cent per
share monthly dividend and the maximum offering price of $12.55 on October 31,
1998.
4. Taxable equivalent distribution rate and yield assume the 1998 maximum
federal income tax rate of 39.6%.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended October 31, 1998.
All total return calculations assume reinvestment of dividends and capital gains
at net asset value. Since markets can go down as well as up, investment return
and principal value will fluctuate with market conditions, and you may have a
gain or loss when you sell your shares.
Past performance is not predictive of future results.
<TABLE>
<CAPTION>
FRANKLIN FEDERAL TAX-FREE INCOME FUND
Financial Highlights
Class I
------------------------------------------------------------------
Six Months Ended
October 31, 1998 Year Ended April 30,
--------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
(for a share outstanding throughout the period)
Net asset value, beginning of period ......... $12.25 $11.90 $11.83 $11.73 $11.81 $12.24
------------------------------------------------------------------
Income from investment operations:
Net investment income ....................... .34 .69 .71 .74 .75 .77
Net realized and unrealized gains (losses) .. .17 .35 .07 .10 (.05) (.41)
------------------------------------------------------------------
Total from investment operations ............. .51 1.04 .78 .84 .70 .36
Less distributions from net investment income (.34) (.69) (.71) (.74) (.78) (.79)
------------------------------------------------------------------
Net asset value, end of period ............... $12.42 $12.25 $11.90 $11.83 $11.73 $11.81
==================================================================
Total Return* ................................ 4.19% 8.92% 6.81% 7.33% 6.21% 2.58%
Ratios/Supplemental Data
Net assets, end of period (000's) ............ $7,133,824 $7,022,961 $6,905,488 $7,012,601 $6,886,941 $6,804,262
Ratios to average net assets:
Expenses .................................... .58%** .59% .58% .57% .59% .52%
Net investment income ....................... 5.46%** 5.70% 6.00% 6.20% 6.47% 6.27%
Portfolio turnover rate ...................... 6.54% 14.54% 16.43% 25.10% 19.88% 24.59%
</TABLE>
*Total return does not reflect sales commissions or the contingent deferred
sales charge, and is not annualized. Prior to May 1, 1994, dividends from net
investment income were reinvested at the offering price.
**Annualized.
<TABLE>
<CAPTION>
Class II
-------------------------------------------------------------
Six Months Ended
October 31, 1998 Year Ended April 30,
-------------------------------------
(unaudited) 1998 1997 1996***
-------------------------------------------------------------
Per Share Operating Performance
(for a share outstanding throughout the period)
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................ $12.24 $11.90 $11.82 $11.73
-------------------------------------------------------------
Income from investment operations:
Net investment income .............................. .30 .63 .66 .68
Net realized and unrealized gains .................. .18 .33 .06 .09
-------------------------------------------------------------
Total from investment operations .................... .48 .96 .72 .77
Less distributions from net investment income ....... (.30) (.62) (.64) (.68)
-------------------------------------------------------------
Net asset value, end of period ...................... $12.42 $12.24 $11.90 $11.82
=============================================================
Total Return* ....................................... 3.97% 8.22% 6.28% 6.68%
Ratios/Supplemental Data
Net assets, end of period (000's) ................... $176,317 $135,195 $71,944 $34,110
Ratios to average net assets:
Expenses ........................................... 1.16%** 1.17% 1.16% 1.15%
Net investment income .............................. 4.88%** 5.12% 5.42% 5.68%
Portfolio turnover rate ............................. 6.54% 14.54% 16.43% 25.10%
</TABLE>
*Total return does not reflect sales commissions or the contingent deferred
sales charge, and is not annualized.
**Annualized.
***The Fund paid a dividend to shareholders of record on the beginning of
business, May 1, 1995 in the amount of $0.062 per share. The net asset value at
the beginning of period includes this dividend.
<TABLE>
<CAPTION>
FRANKLIN FEDERAL TAX-FREE INCOME FUND
Statement of Investments, October 31, 1998 (unaudited)
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
aLong Term Investments 97.7%
Bonds 95.5%
Alabama 1.3%
<S> <C> <C>
Alabama HFA, SFMR, Collateralized Home Mortgage, Series D-2, 5.75%, 10/01/23 ..................... $ 5,400,000 $ 5,571,936
Alabama Water Pollution Control Authority, Revolving Fund Loan, Series B, Pre-Refunded, 7.75%, 8/15/12 5,925,000 6,389,402
Anniston Regional Medical Center Board, Series A, AMBAC Insured, 5.125%, 6/01/28 ................. 7,000,000 7,002,730
Citronelle IDB, PCR, Stauffer Chemical Project, Guaranteed by Imperial Chemical, Plc., Series 1982, 8.00%,
12/01/12 ......................................................................................... 1,000,000 1,073,370
Courtland IDB, PCR, Champion International Corp. Project, Refunding, 6.15%, 6/01/19 .............. 5,000,000 5,310,800
Courtland IDBR, Champion International Corp., Refunding, Series A, 7.20%, 12/01/13 ............... 12,000,000 13,212,600
Fairfield IDB, Environmental Improvement Revenue, USX Corp. Projects, Refunding, 5.45%, 9/01/14 .. 1,445,000 1,469,319
Jefferson County Sewer Revenue, Warrants,
Refunding, Series A, FGIC Insured, 5.625%, 2/01/22 ............................................... 4,000,000 4,280,200
Series D, FGIC Insured, 5.75%, 2/01/22 ........................................................... 15,995,000 17,330,742
Series D, FGIC Insured, 5.75%, 2/01/27 ........................................................... 19,715,000 21,361,400
Mc Intosh IDB, Environmental Improvement Revenue, CIBA Specialty, Refunding, Series C, 5.375%, 6/01/28 5,000,000 5,062,150
Montgomery Medical Clinic Board, Health Care Facilities Revenue, Jackson Hospital and Clinic, Refunding,
AMBAC Insured, 6.00%, 3/01/26 .................................................................... 5,385,000 5,894,367
-----------
93,959,016
-----------
Alaska 1.9%
Alaska Industrial Development and Export Authority, Revolving Fund, Series A, 7.95%, 4/01/10 ..... 1,775,000 1,888,369
Alaska State HFC,
Collateralized Home Mortgage, Series A-1, 6.75%, 12/01/32 ........................................ 3,400,000 3,609,134
Mortgage, Refunding, Series A, MBIA Insured, 6.00%, 12/01/15 ..................................... 4,290,000 4,546,070
Refunding, Series A, MBIA Insured, 5.875%, 12/01/24 .............................................. 17,875,000 18,711,908
Refunding, Series A, MBIA Insured, 5.875%, 12/01/30 .............................................. 11,600,000 12,092,072
Refunding, Series A, MBIA Insured, 6.10%, 12/01/37 ............................................... 34,000,000 35,952,960
Series A, Pre-Refunded, 6.60%, 12/01/23 .......................................................... 8,000,000 8,903,120
Veterans Mortgage Program, MBIA Insured, 6.75%, 12/01/25 ......................................... 20,530,000 22,039,776
Anchorage Parking Authority Revenue, 5th Avenue Garage Lease Project, Refunding,
6.50%, 12/01/02 .................................................................................. 3,360,000 3,616,570
6.75%, 12/01/08 .................................................................................. 3,500,000 3,783,045
Valdez Marine Terminal Revenue, BP Pipelines, Inc. Project, Refunding, Series A, 5.85%, 8/01/25 .. 25,000,000 25,955,000
-----------
141,098,024
-----------
Arizona .4%
Maricopa County IDA, Health Facilities Revenue, Mayo Clinic Hospital, 5.25%, 11/15/37 ............ 20,000,000 20,241,400
Phoenix Civic Improvement Corporation Airport Revenue, Senior Lien, Series B, FSA Insured, 5.00%, 8,500,000 8,462,175
-----------
7/01/25 28,703,575
-----------
Arkansas 1.4%
Arkansas State Development Financing Authority, Driver's License Revenue, State Police Headquarters,
Wireless Data, FGIC Insured, 5.40%, 6/01/18 ...................................................... 4,000,000 4,166,920
Desha County Residential Housing Facilities Board, SFMR, Refunding, 7.50%, 4/01/11 ............... 1,940,000 2,066,236
Independence County Public Health and Education Facilities Board, Capital Revenue, White River Control Project,
Refunding & Improvement, Pre-Refunded, 8.00%, 6/01/09 ............................................ 3,115,000 3,265,174
Jefferson County PCR,
Arkansas Power and Light Co. Project, Refunding, 6.30%, 6/01/18 .................................. 1,465,000 1,587,049
Entergy Arkansas Inc. Project, Refunding, 5.60%, 10/01/17 ........................................ 5,000,000 5,082,000
Little River County Revenue, Georgia-Pacific Corporate Project, Refunding, 5.60%, 10/01/26 ....... 13,000,000 13,041,340
Arkansas (cont.)
Pope County PCR, Power and Light Co. Project, Refunding, 6.30%,
12/01/16 ......................................................................................... $ 2,600,000 $ 2,813,954
11/01/20 ......................................................................................... 60,000,000 62,688,600
Pulaski County,
Health Facilities Board Revenue Catholic Health Initiatives, Series A, 5.00%, 12/01/28 ........... 1,500,000 1,461,240
Public Facilities Board, MFR, Refunding, Series A, GNMA Insured, 5.45%, 12/20/18 ................. 1,000,000 1,012,630
University of Central Arkansas,
Academic Facilities Revenue, Series B, AMBAC Insured, 5.875%, 4/01/16 ............................ 250,000 275,203
Academic Facilities Revenue, Series C, AMBAC Insured, 6.00%, 4/01/21 ............................. 1,000,000 1,108,620
Athletic Facilities Revenue, Series C, AMBAC Insured, 6.00%, 4/01/21 ............................. 1,000,000 1,108,620
Athletic Facilities Revenue, Series C, AMBAC Insured, 6.125%, 4/01/26 ............................ 825,000 911,130
Housing System Revenue, Refunding, Series A, AMBAC Insured, 6.00%, 4/01/21 ....................... 1,000,000 1,108,620
-----------
101,697,336
-----------
California 4.9%
Alhambra COP, Clubhouse Facility Project, 11.25%
1/01/08 .......................................................................................... 410,000 418,688
1/01/09 .......................................................................................... 455,000 464,564
1/01/10 .......................................................................................... 500,000 510,470
Burbank RDA, Tax Allocation, Refunding, Series A, 6.25%, 12/01/24 ................................ 5,325,000 5,740,084
California Health Facilities, Financing Authority Revenue, St. Francis Medical Center, Refunding, Series H, AMBAC
Insured, 6.30%, 10/01/15 ......................................................................... 2,800,000 3,182,256
California State Educational Facilities Authority Revenue,
National University, Connie Lee Insured, 6.00%, 5/01/09 .......................................... 3,580,000 3,996,891
Pooled College and University Projects, Series B, 6.00%, 12/01/20 ................................ 6,025,000 6,482,719
California State GO,
6.00%, 5/01/18 ................................................................................... 535,000 590,587
5.90%, 4/01/23 ................................................................................... 1,200,000 1,300,740
FGIC Insured, 6.00%, 5/01/20 ..................................................................... 850,000 936,547
FGIC Insured, Pre-Refunded, 6.00%, 5/01/20 ....................................................... 11,650,000 13,099,027
Series 1994, 5.90%, 5/01/08 ...................................................................... 3,070,000 3,436,773
Veterans Bonds, Series BC, 6.00%, 2/01/10 ........................................................ 1,000,000 1,015,780
Veterans Bonds, Series BD, BE, and BF, 6.55%, 2/01/25 ............................................ 14,700,000 14,941,668
California State Public Works Board, Lease Revenue, Various University of California Projects, Series A, 6.375%,
10/01/14 ......................................................................................... 4,000,000 4,592,880
10/01/19 ......................................................................................... 2,000,000 2,296,440
California Statewide Communities Development Authority Revenue, COP, Sutter Health Obligation Group,
MBIA Insured, 6.00%, 8/15/25 ..................................................................... 14,750,000 16,329,873
Chino USD, COP, Refunding, FSA Insured, 5.90%, 9/01/15 ........................................... 8,250,000 9,094,800
Coalinga Public Finance Authority Revenue, Series B, 6.25%, 9/15/07 .............................. 1,020,000 1,044,378
Commerce, Refuse to Energy Authority Revenue, Refunding, Series 1994, 8.75%, 7/01/10 ............. 1,000,000 1,184,950
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue, Senior Lien, Series A, 6.50%, 59,240,000 66,583,983
1/01/32
Forty-Niner Shops, Inc., Auxiliary Organization, California State Long Beach Project, 6.875%,
4/01/07 .......................................................................................... 1,090,000 1,222,795
4/01/12 .......................................................................................... 1,565,000 1,755,664
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, Proposition C, Refunding,
Second Series A, AMBAC Insured, 5.00%, 7/01/23 ................................................... 10,000,000 9,971,200
California (cont.)
Los Angeles CRDA, Housing Revenue, Refunding, Series A, AMBAC Insured, 6.55%, 1/01/27 ............ $ 3,180,000 $ 3,451,731
Los Angeles Department of Water and Power, Electric Plant Revenue, Refunding, MBIA Insured, 6.00%, 3,000,000 3,203,880
2/01/28
Los Angeles Regional Airport Improvements Corp., Lease Revenue,
Facilities Sub-Lease, International Airport, Refunding, 6.35%, 11/01/25 .......................... 18,500,000 20,263,605
United Airlines, Inc. Project, Refunding, 6.875%, 11/15/12 ....................................... 8,400,000 9,245,292
Pomona Public Financing Authority Revenue, Series Q, MBIA Insured, 5.90%, 12/01/25 ............... 4,000,000 4,379,000
Sacramento County Airport Systems Revenue, Sub-Series D, MBIA Insured, 6.00%, 7/01/16 ............ 6,480,000 7,285,464
San Bernardino County COP, Medical Center Financing Project, Series A, MBIA Insured, 5.875%, 8/01/26 33,315,000 36,322,012
San Francisco City and County RDA Revenue,
George Moscone Convention Center, Lease Revenue, 6.75%, 7/01/24 .................................. 7,075,000 8,102,007
Tax Allocation Redevelopment Project, 6.50%, 8/01/22 ............................................. 12,680,000 14,700,812
San Francisco City and County Sewer Revenue, Series A, FGIC Insured, 5.90%, 10/01/20 ............. 10,380,000 11,247,041
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue,
5.00%, 1/01/33 ................................................................................... 5,000,000 4,840,650
Pre-Refunded, 7.00%, 1/01/30 ..................................................................... 16,785,000 19,188,948
University of California Revenues,
Hospital - U.C. Medical Center, AMBAC Insured, 5.75%, 7/01/24 .................................... 25,000,000 27,080,250
Research Facilities, Series B, Pre-Refunded, 6.55%, 9/01/24 ...................................... 11,780,000 13,419,658
Windsor RDA Revenue, Tax Allocation, Windsor Project, 7.00%, 9/01/24 ............................. 2,405,000 2,661,998
-----------
355,586,105
-----------
Colorado 4.8%
Colorado Health Facilities Authority Revenue,
Catholic Health Initiatives, Series A, 5.00%, 12/01/28 ........................................... 3,035,000 2,956,576
Kaiser Permanente, Series A, 5.35%, 11/01/16 ..................................................... 13,250,000 13,398,003
Series B, 5.35%, 8/01/15 ......................................................................... 20,200,000 20,763,580
Colorado HFA, GO, Series A, 7.50%, 5/01/29 ....................................................... 1,595,000 1,675,611
Colorado Post-Secondary Educational Facilities Authority Revenue, University of Denver Project,
Refunding & Improvement, MBIA Insured, 5.375%, 3/01/18 ........................................... 6,000,000 6,256,500
Colorado Springs Utilities Revenue, System Improvement, Series A, Subordinate Lien., 5.00%, 11/15/27 20,000,000 19,818,000
Denver City and County Airport Revenue,
Series A, 8.875%, 11/15/12 ....................................................................... 12,130,000 13,836,934
Series A, 7.50%, 11/15/23 ........................................................................ 13,590,000 15,572,237
Series A, 8.50%, 11/15/23 ........................................................................ 72,960,000 79,924,032
Series A, 8.00%, 11/15/25 ........................................................................ 20,305,000 22,048,184
Series A, 8.00%, 11/15/25 ........................................................................ 1,480,000 1,626,076
Series A, Pre-Refunded, 7.50%, 11/15/12 .......................................................... 11,200,000 12,950,224
Series A, Pre-Refunded, 8.875%, 11/15/12 ......................................................... 4,515,000 5,252,661
Series A, Pre-Refunded, 7.50%, 11/15/23 .......................................................... 2,930,000 3,512,045
Series A, Pre-Refunded, 8.50%, 11/15/23 .......................................................... 6,985,000 7,771,930
Series A, Pre-Refunded, 7.25%, 11/15/25 .......................................................... 16,465,000 18,918,779
Series A, Pre-Refunded, 7.25%, 11/15/25 .......................................................... 8,060,000 9,261,182
Series A, Pre-Refunded, 8.00%, 11/15/25 .......................................................... 2,020,000 2,227,979
Series A, Pre-Refunded, 8.00%, 11/15/25 .......................................................... 520,000 582,743
Series B, 7.25%, 11/15/23 ........................................................................ 2,120,000 2,344,911
Series B, Pre-Refunded, 7.25%, 11/15/23 .......................................................... 530,000 605,764
Series D, 7.75%, 11/15/21 ........................................................................ 8,950,000 9,913,647
Colorado (cont.)
Denver City and County Airport Revenue, (cont.)
Series D, 7.00%, 11/15/25 ........................................................................ $ 7,835,000 $ 8,352,032
Series D, Pre-Refunded, 7.75%, 11/15/21 .......................................................... 2,510,000 2,839,889
Denver City and County Special Facilities, Airport Revenue, United Airlines, Inc. Project, 47,980,000 51,855,345
Series A, 6.875%, 10/01/32
Littleton MFR, Rental Housing, Riverpointe Project I, Series 1985, 8.00%, 12/01/22 ............... 16,105,000 16,486,689
-----------
350,751,553
-----------
Connecticut
Meriden Housing Authority MFR, Connecticut Baptist Housing Project, GNMA Insured, 5.80%, 8/20/39 . 2,870,000 2,975,645
-----------
Delaware
Delaware State EDA Revenue, Water Development, Wilmington, Refunding, Series B, 6.45%, 12/01/07 .. 1,160,000 1,340,995
Delaware State Housing Authority, MFMR, Refunding, Series D, 6.75%, 7/01/06 ...................... 2,000,000 2,217,580
-----------
3,558,575
-----------
Florida 2.0%
Bay County Resource Recovery Revenue, Refunding,
Series A, MBIA Insured, 6.50%, 7/01/07 ........................................................... 2,100,000 2,332,239
Series B, MBIA Insured, 6.50%, 7/01/07 ........................................................... 11,020,000 12,238,702
Broward County Resource Recovery Revenue, Broward Waste Energy Co., L.P., North Project, Series 1984, 7.95%,
12/01/08 ......................................................................................... 40,950,000 43,675,223
Callaway/Bay County Waste Water Systems Revenue, Series A, FGIC Insured, 6.00%, 9/01/26 .......... 1,000,000 1,108,560
Florida State Board Of Education, Capital Outlay, Public Education, Refunding, Series 1992, 6.40%, 22,475,000 24,347,842
6/01/19
Florida State Department of Transportation,
Right of Way Acquisition and Bridge, 5.375%, 7/01/26 ............................................. 10,000,000 10,317,000
Turnpike Revenue, Series A, Pre-Refunded, 7.75%, 7/01/09 ......................................... 7,125,000 7,485,739
Lakeland Retirement Community, First Mortgage Revenue, Carpenters Home Estate Project, 9.50%, 9/01/06 3,330,000 3,330,000
Manatee County IDR, Manatee Hospital and Health Systems, Inc., Pre-Refunded, 9.25%, 3/01/21 ...... 6,500,000 7,423,260
Manatee County School Board COP, MBIA Insured, Pre-Refunded, 6.125%, 7/01/16 ..................... 5,000,000 5,768,450
bSouth Miami Florida Health Facilities Authority Hospital Revenue, Baptist Health System Obligation Group,
MBIA Insured, 5.00%, 11/15/28 .................................................................... 7,000,000 6,924,680
St. Augustine Water and Sewer Revenue, Refunding, Series A, MBIA Insured, 6.20%,
10/01/00 ......................................................................................... 840,000 884,024
10/01/01 ......................................................................................... 890,000 956,634
10/01/02 ......................................................................................... 940,000 1,028,322
10/01/03 ......................................................................................... 1,005,000 1,117,741
10/01/04 ......................................................................................... 1,065,000 1,199,084
10/01/05 ......................................................................................... 1,130,000 1,286,019
10/01/06 ......................................................................................... 1,200,000 1,381,692
10/01/07 ......................................................................................... 1,275,000 1,463,024
10/01/08 ......................................................................................... 1,355,000 1,539,822
10/01/12 ......................................................................................... 6,300,000 7,114,653
Sunrise Utilities System Revenue, Refunding, AMBAC Insured, 5.20%, 10/01/22 ...................... 2,000,000 2,052,520
-----------
144,975,230
-----------
Georgia 2.3%
Burke County Development Authority, PCR, Georgia Power Co., Plant Vogle Project,
Series 1984-1, MBIA Insured, 6.60%, 7/01/24 ...................................................... 105,000,000 108,851,400
Series 1984-7, MBIA Insured, 6.625%, 10/01/24 .................................................... 8,025,000 8,371,439
Georgia (cont.)
Fulton County Development Authority, Special Facilities Revenue, Delta Airlines, Inc. Project,
5.45%, 5/01/23 ................................................................................... $ 3,000,000 $ 2,956,110
Refunding, 6.85%, 11/01/07 ....................................................................... 3,400,000 3,701,546
Refunding, 6.95%, 11/01/12 ....................................................................... 5,500,000 5,994,945
Gainsville and Hall County Hospital Authority Revenue Anticipation Certificates, Northeast
Georgia Healthcare Project, Refunding, MBIA Insured, 6.00%, 10/01/25 ............................. 7,975,000 8,725,607
Georgia Municipal Electric Authority Power Revenue,
Series B, 6.375%, 1/01/16 ........................................................................ 14,000,000 14,979,720
Series EE, 6.40%, 1/01/23 ........................................................................ 6,325,000 7,034,792
Georgia State HFA Revenue, Homeownership Opportunity Program, Series C, 6.60%, 12/01/23 .......... 3,635,000 3,875,746
Monroe County Development Authority, PCR, Georgia Power Co., AMBAC Insured, 6.25%, 7/01/19 ....... 4,300,000 4,477,074
-----------
168,968,379
-----------
Hawaii 1.2%
Hawaii State Airports System Revenue,
FGIC Insured, 7.00%, 7/01/20 ..................................................................... 1,000,000 1,095,810
Second Series, 7.00%, 7/01/07 .................................................................... 12,000,000 13,066,680
Second Series, 6.90%, 7/01/12 .................................................................... 500,000 599,795
Second Series, 7.00%, 7/01/18 .................................................................... 2,830,000 3,046,580
Hawaii State Department of Budget and Finance,
Special Purposes Mortgage Revenue, Hawaii Electric Light Co. Project, 7.20%, 12/01/14 ............. 200,000 210,560
Special Purposes Mortgage Revenue, Hawaii Electric Light Co. Project, Series A, 7.35%, 1/01/20 ... 1,000,000 1,051,540
Special Purposes Mortgage Revenue, Hawaii Electric Light Co. Project, Series A, MBIA Insured, 5.65%,
10/01/27 ......................................................................................... 20,000,000 21,794,400
Special Purposes Mortgage Revenue, Kaiser Hospital, 6.25%, 3/01/21 ............................... 900,000 948,510
Special Purposes Mortgage Revenue, Kapiolani Health Care System, Refunding, 6.00%, 7/01/19 ....... 2,600,000 2,762,500
Special Purposes Mortgage Revenue, Wahiawa General Hospital Project, 7.50%, 7/01/12 .............. 1,000,000 1,090,800
Special Purposes Revenue, 6.00%, 7/01/11 ......................................................... 1,000,000 1,094,710
Special Purposes Revenue, 6.20%, 7/01/16 ......................................................... 2,000,000 2,177,060
Special Purposes Revenue, 6.25%, 7/01/21 ......................................................... 6,250,000 6,818,813
Special Purposes Revenue, The Queens Health System, Refunding, Series A, 5.75%, 7/01/26 .......... 5,800,000 6,115,926
Special Purposes Revenue, The Queens Health System, Series B, MBIA Insured, 5.25%, 7/01/23 ....... 5,000,000 5,153,700
Special Purposes Revenue, The Queens Health System, Series B, MBIA Insured, 5.00%, 7/01/28 ....... 3,250,000 3,272,653
Hawaii State SFMR,
HFC, Series A, 7.00%, 7/01/11 .................................................................... 230,000 245,332
HFC, Series A, 7.10%, 7/01/24 .................................................................... 3,350,000 3,573,747
HFC, Series B, 6.90%, 7/01/16 .................................................................... 245,000 261,964
HFC, Series B, 7.00%, 7/01/31 .................................................................... 8,055,000 8,618,608
Housing and Development Corp., Purchase Revenue, Series A, 5.75%, 7/01/30 ........................ 2,500,000 2,580,225
-----------
85,579,913
-----------
Idaho .1%
Idaho Housing Agency,
Refunding, Series D-1, 6.45%, 7/01/19 ............................................................ 2,190,000 2,347,461
SFMR, Senior Bond, Series B-1, FGIC Insured, 7.85%, 7/01/09 ...................................... 745,000 768,155
SFMR, Senior Bond, Series B-1, FGIC Insured, 7.90%, 1/01/21 ...................................... 1,120,000 1,151,786
Power County PCR, FMC Corp. Project, Refunding, 5.625%, 10/01/14 ................................. 2,200,000 2,280,696
-----------
6,548,098
-----------
Illinois 7.2%
Bryant PCR, Central Illinois Light Co. Project, Refunding,
Series A, 6.50%, 2/01/18 ......................................................................... $ 7,200,000 $ 7,738,056
Series C, 6.50%, 1/01/10 ......................................................................... 5,000,000 5,418,450
Chicago Board of Education, Chicago School Reform,
MBIA Insured, 6.00%, 12/01/16 .................................................................... 9,700,000 10,720,537
MBIA Insured, 6.00%, 12/01/26 .................................................................... 7,600,000 8,334,692
Series A, AMBAC Insured, 5.25%, 12/01/27 ......................................................... 10,000,000 10,125,300
Series A, AMBAC Insured, 5.25%, 12/01/30 ......................................................... 8,830,000 8,925,717
Chicago COP, AMBAC Insured, 7.75%, 7/15/11 ....................................................... 20,000,000 24,318,000
Chicago Gas Supply Revenue, The Peoples Gas Light, Refunding, Series A, 6.10%, 6/01/25 ........... 12,000,000 12,911,880
Chicago GO, Lakefront Millennium Parking Facilities, 5.125%, 1/01/28 ............................. 26,345,000 26,126,337
Chicago SFMR, Collateralized, Series A, 7.25%, 9/01/28 ........................................... 3,800,000 4,316,458
Chicago Wastewater Transmission Revenue, Refunding, FGIC Insured, 5.125%, 1/01/25 ................ 5,000,000 5,008,700
Chicago-O'Hare International Airport Revenue, Special Facilities, United Airlines, Inc. Project,
8.45%, 5/01/07 ................................................................................... 4,300,000 4,620,264
8.50%, 5/01/18 ................................................................................... 12,305,000 13,228,367
8.20%, 12/01/24 .................................................................................. 11,720,000 14,083,572
Series A, 8.40%, 5/01/18 ......................................................................... 450,000 471,528
Series C, 8.20%, 5/01/18 ......................................................................... 27,600,000 28,893,888
Cook County,
Capital Improvement, Refunding, FGIC Insured, 5.90%, 12/01/14 .................................... 10,000,000 10,998,700
Orland Park School District No. 135, Refunding, FGIC Insured, 5.875%, 11/15/22 ................... 10,000,000 11,312,800
Refunding, Series A, MBIA Insured, 5.625%, 11/15/22 .............................................. 20,000,000 21,042,000
Tinley Park School District No.140, Refunding, Series A, AMBAC Insured, 6.00%, 12/01/15 .......... 8,750,000 9,727,025
Illinois Development Finance Authority, PCR,
Central Illinois Public Service Co., Refunding, Series A, 6.375%, 1/01/28 ........................ 15,200,000 16,223,720
Commonwealth Edison Co. Project, Series 1991, 7.25%, 6/01/11 ..................................... 7,500,000 8,089,575
Illinois Power Co. Project, Refunding, Series A, 7.375%, 7/01/21 ................................. 26,550,000 30,827,205
Illinois Development Finance Authority Revenue, Provena Health, Series A, MBIA Insured, 5.50%, 5/15/21 13,240,000 13,732,263
Illinois Educational Facilities Authority Revenues, Midwestern University, Series B, MBIA-IBC Insured,
5.50%, 5/15/28 ................................................................................... 6,250,000 6,487,875
Illinois HDA,
Homeowner Mortgage, Series A-1, 6.85%, 8/01/17 ................................................... 4,245,000 4,646,832
MF Program, Lawndale Redevelopment Project, 7.10%, 12/01/34 ...................................... 20,000,000 22,026,800
MF Program, Refunding, Series A, 7.10%, 7/01/26 .................................................. 12,915,000 13,980,746
MF Program, Series 1, 6.625%, 9/01/12 ............................................................ 12,000,000 12,850,680
MF Program, Series 1, 6.75%, 9/01/21 ............................................................. 7,550,000 8,057,662
MF Program, Series C, 7.35%, 7/01/11 ............................................................. 2,265,000 2,378,975
RMR, Series B, 7.25%, 8/01/17 .................................................................... 7,065,000 7,478,091
Illinois Health Facilities Authority Revenue,
Edwards Hospital Project, Refunding, Pre-Refunded, 7.00%, 2/15/22 ................................ 2,000,000 2,234,140
Hospital Sisters Services Incorporated, Series A, MBIA Insured, 5.00%, 6/01/18 ................... 10,000,000 9,791,800
Loyola University Health System, Refunding, Series A, MBIA Insured, 5.625%, 7/01/18 .............. 9,195,000 9,774,193
Methodist Medical Center, Refunding, MBIA Insured, 5.25%, 11/15/21 ............................... 2,885,000 2,938,171
Northwestern Medical Facility Foundation, Refunding, MBIA Insured, 5.125%, 11/15/28 .............. 7,500,000 7,471,350
Servantcor, Refunding, Series A, Pre-Refunded, 7.875%, 8/15/19 ................................... 1,000,000 1,056,400
Servantcor, Refunding, Series B, Pre-Refunded, 7.875%, 8/15/19 ................................... 3,000,000 3,169,200
Illinois (cont.)
Illinois Health Facilities Authority Revenue, (cont.)
South Suburban Hospital, ETM, 7.00%, 2/15/18 ..................................................... $ 4,200,000 $ 5,186,496
South Suburban Hospital, Pre-Refunded, 7.00%, 2/15/18 ............................................ 2,800,000 3,127,796
Victory Health Services, Series A, 5.75%, 8/15/27 ................................................ 8,015,000 8,249,759
Westlake Community Hospital, Refunding, 7.875%, 1/01/13 .......................................... 6,200,000 6,356,054
Illinois State COP Department of Central Management, 6.875%, 7/01/07 ............................. 2,600,000 2,896,842
Illinois State Dedicated Tax Revenue, Pre-Refunded, Civic Center, Series A,
6.00%, 12/15/15 .................................................................................. 2,105,000 2,176,886
AMBAC Insured, 6.00%, 12/15/15 ................................................................... 845,000 886,768
Metropolitan Pier and Exposition Authority,
Dedicated State Tax Revenue, McCormick Place Expansion Project, Series A, 6.50%, 6/15/22 ......... 5,000 5,472
Dedicated State Tax Revenue, McCormick Place Expansion Project, Series A, 6.50%, 6/15/27 ......... 555,000 606,626
Dedicated State Tax Revenue, McCormick Place Expansion Project, Series A, FGIC Insured, 6.50%, 6/15/07 5,000 5,594
Hospitality Facilities Revenue, McCormick Place Convention Center, 5.75%, 7/01/06 ................ 1,645,000 1,764,740
Hospitality Facilities Revenue, McCormick Place Convention Center, 6.25%, 7/01/17 ................ 9,500,000 10,332,865
Hospitality Facilities Revenue, McCormick Place Convention Center, 7.00%, 7/01/26 ................ 12,000,000 14,983,080
Onterie Center HFC, Mortgage Revenue, Refunding, Series A, MBIA Insured, 7.05%, 7/01/27 .......... 4,350,000 4,661,069
Regional Transportation Authority, Series A, AMBAC Insured, 6.125%, 6/01/22 ...................... 3,970,000 4,208,915
Southwestern Illinois Development Authority,
Anderson Hospital Project, Series A, 7.00%, 8/15/22 .............................................. 6,200,000 6,688,932
IDR, Spectrulite Consortium, Inc. Project, 6.20%, 2/01/05 ........................................ 1,825,000 1,978,629
IDR, Spectrulite Consortium, Inc. Project, 6.625%, 2/01/10 ....................................... 3,050,000 3,317,943
Private Activity Revenue, Glenmark Recovery, 8.50%, 8/01/10 ...................................... 2,815,000 3,054,388
Solid Waste Disposal Revenue, LaCede Steel Co., 8.375%, 8/01/08 .................................. 4,695,000 5,127,973
Solid Waste Disposal Revenue, LaCede Steel Co., 8.50%, 8/01/20 ................................... 5,390,000 5,896,337
Upper River Valley Development Authority, Environmental Facilities Revenue, General Electric Co. Project,
5.45%, 2/01/23 ................................................................................... 3,600,000 3,694,104
Will County Exempt Facilities Revenue, Mobil Oil Refining Corp. Project, 6.00%, 2/01/27 .......... 7,130,000 7,516,945
-----------
524,262,162
-----------
Indiana 1.2%
Carmel Industrial RDA, County Option, Income Tax Lease, Rent Revenue, MBIA Insured, 5.25%, 1/01/18 1,090,000 1,114,787
East Chicago Industrial Solid Waste Disposal Revenue, USG Corp. Project, 5.50%, 9/01/28 .......... 5,250,000 5,144,055
Hammond Industrial Sewer and Solid Waste Disposal Revenue, American Maize-Products Co., Project A, 8.00%,
12/01/24 ......................................................................................... 17,000,000 20,012,230
Hammond PCR, Stauffer Chemical Project, Guaranteed by Imperial Chemical, Series 1982, 8.00%, 11/01/12 2,355,000 2,520,345
Indiana Bond Bank, Special Program, Series A, 8.375%, 2/01/18 .................................... 560,000 568,445
Indiana Health Facility Financing Authority, Hospital Revenue, Hancock Memorial Hospital Project, Series 1990,
Pre-Refunded, 8.30%, 8/15/20 ..................................................................... 3,500,000 3,849,860
Indiana State Educational Facilities Authority Revenue, Manchester College Project, 6.85%, 10/01/18 3,240,000 3,438,288
Indiana State Housing Financing Authority, SFMR, Refunding, Series A,
6.75%, 1/01/10 ................................................................................... 2,940,000 3,135,451
6.80%, 1/01/17 ................................................................................... 12,835,000 13,691,736
Indianapolis Local Public Improvement,
Refunding, Series D, 6.50%, 2/01/22 .............................................................. 4,625,000 4,635,591
Series D, 6.75%, 2/01/20 ......................................................................... 13,075,000 14,527,633
Jasper County EDR, Georgia Pacific Corp. Project, 5.625%, 12/01/27 ............................... 2,500,000 2,521,425
Indiana (cont.)
Monroe County, MFR Housing, Country View, Series A, GNMA Insured, 5.75%, 4/01/33 ................. $ 2,000,000 $ 2,026,600
Muncies Edit Building Corp., First Mortgage, Series A, AMBAC Insured, 6.60%, 12/01/17 ............ 2,000,000 2,229,880
Sullivan PCR, Indiana-Michigan Power Co. Project, Refunding, Series C, 5.95%, 5/01/09 ............ 6,000,000 6,352,740
-----------
85,769,066
-----------
Iowa .2%
Iowa Financing Authority, SFMR, Series F, 5.70%, 1/01/27 ......................................... 10,780,000 11,126,793
-----------
Kansas .1%
Kansas State Development Financial Authority Revenue, Sisters of Charity Leavenworth, MBIA Insured, 5.125%,
12/01/18 ......................................................................................... 2,000,000 2,035,060
Newton Hospital Revenue, Newton Healthcare Corp., Refunding, Series A,
5.70%, 11/15/18 .................................................................................. 1,575,000 1,592,955
5.75%, 11/15/24 .................................................................................. 1,500,000 1,513,620
-----------
5,141,635
-----------
Kentucky 2.0%
Ashland PCR, Ashland Oil, Inc. Project, Refunding, 6.65%, 8/01/09 ................................ 3,900,000 4,217,772
Henderson County Solid Waste Disposal Revenue, MacMillan Bloedel Project, 7.00%, 3/01/25 ......... 10,000,000 10,900,500
Jefferson County MFHR, Watterson Park Apartments Project, Series A, 6.35%, 11/15/11 .............. 4,870,000 5,176,859
Kenton County Airport Board Revenue, Special Facilities, Delta Airlines, Inc.,
7.80%, 12/01/15 .................................................................................. 20,000,000 21,091,400
Project A, 7.50%, 2/01/20 ........................................................................ 10,000,000 10,943,600
Project A, 7.125%, 2/01/21 ....................................................................... 9,330,000 10,089,182
Project B, 7.25%, 2/01/22 ........................................................................ 3,350,000 3,650,797
Kentucky Economic Development Financing Authority, Hospital Systems Revenue, Appalachian Regional Facility,
Refunding & Improvement,
5.80%, 10/01/12 .................................................................................. 1,000,000 1,044,080
5.85%, 10/01/17 .................................................................................. 5,615,000 5,837,522
Kentucky Housing Corp. Revenue,
Series A, 6.70%, 7/01/17 ......................................................................... 485,000 515,613
Series B, 6.625%, 7/01/14 ........................................................................ 4,910,000 5,196,008
Kentucky State Development Financing Authority, Hospital Revenue, Claire Medical Center Project, Pre-Refunded,
7.125%, 9/01/21 .................................................................................. 700,000 776,321
Mount Sterling Lease Revenue, Kentucky League Cities, Series A,
6.10%, 3/01/08 ................................................................................... 20,375,000 22,078,554
6.20%, 3/01/18 ................................................................................... 11,765,000 12,702,553
Pendleton County, Multi-County Lease Revenue, Kentucky Association of Counties Leasing Trust, Series A, 6.50%,
3/01/19 .......................................................................................... 27,160,000 29,685,608
-----------
143,906,369
-----------
Louisiana 2.1%
Bastrop PCR, International Paper Co. Project, Refunding, 6.90%, 3/01/07 .......................... 2,000,000 2,174,540
Calcasieu Parish IDB, PCR, Gulf States Utilities Co. Project, Refunding, 6.75%, 10/01/12 ......... 14,285,000 15,313,806
Calcasieu Parish Memorial Hospital Service District Revenue, Lake Charles Parish Memorial Hospital Project,
Series A, FSA Insured,
6.375%, 12/01/12 ................................................................................. 4,310,000 5,022,745
6.50%, 12/01/18 .................................................................................. 5,530,000 6,541,879
Louisiana (cont.)
Calcasieu Parish Public Transportation Authority Mortgage Revenue, Refunding,
6.65%, 12/01/21 .................................................................................. $ 3,145,000 $ 3,435,441
Series A, 7.75%, 6/01/12 ......................................................................... 2,675,000 2,843,980
Series B, 6.375%, 11/01/02 ....................................................................... 255,000 270,285
Series B, 6.875%, 11/01/12 ....................................................................... 600,000 641,550
De Soto Parish Environmental Improvement Revenue, International Paper Co. Project, Series A, 7.70%, 2,500,000 2,898,500
11/01/18
East Baton Rouge Mortgage Financing Authority, SFM,
MBS, Series A, 6.80%, 10/01/28 ................................................................... 6,055,000 6,519,055
Series C, 7.00%, 4/01/32 ......................................................................... 2,130,000 2,268,131
Series D, 7.10%, 4/01/32 ......................................................................... 2,850,000 3,024,335
Hammond Tangipahoa Home Mortgage Authority Revenue, University Facilities Incorporate Project, MBIA Insured,
5.50%, 7/15/27 ................................................................................... 3,250,000 3,350,490
Jefferson Parish Hospital, Service District No. 001, Hospital Revenue, West Jefferson Medical Center, Series A,
FSA Insured, 5.00%, 1/01/21 ...................................................................... 1,500,000 1,456,665
Lafayette Public Trust Financing Authority SFMR, Refunding, Series A, 8.50%, 11/15/12 ............ 1,253,961 1,304,132
Louisiana HFA Mortgage Revenue,
Refunding, 7.375%, 9/01/13 ....................................................................... 1,120,000 1,173,368
SF, Refunding, Series B-2, 5.75%, 12/01/28 ....................................................... 2,890,000 2,979,937
Louisiana Office Facility Corp., Capital Facility Bonds, Statewide Lease, 7.75%, 12/01/10 ........ 3,400,000 3,752,954
Louisiana Public Facilities Authority Revenue,
Alton Ochsner Medical Foundation Project, Refunding, Series B, MBIA Insured, 6.50%, 5/15/22 ...... 3,500,000 3,811,115
Xavier University of Louisiana Project, Refunding, MBIA Insured, 5.25%, 9/01/27 .................. 3,000,000 3,061,890
New Orleans GO, Refunding, AMBAC Insured,
6.125%, 10/01/16 ................................................................................. 10,275,000 11,216,909
6.20%, 10/01/21 .................................................................................. 8,050,000 8,803,319
Pointe Coupee Parish PCR, Gulf States Utilities Co. Project, Refunding, 6.70%, 3/01/13 ........... 2,200,000 2,365,902
Quachita Parish Hospital Service District No. 1 Revenue, Glenwood Regional Medical Center, Pre-Refunded,
7.50%, 7/01/21 ................................................................................... 4,000,000 4,448,360
Terrebonne Parish Hospital Service District No. 1, Hospital Revenue, Terrebonne General Medical Center Project,
Refunding, 5.375%, 4/01/23 ....................................................................... 2,500,000 2,578,450
West Feliciana Parish PCR, Gulf Systems Utilities Co. Project,
7.70%, 12/01/14 .................................................................................. 2,000,000 2,230,420
7.00%, 11/01/15 .................................................................................. 3,050,000 3,371,531
Refunding, 8.00%, 12/01/24 ....................................................................... 41,050,000 43,384,103
-----------
150,243,792
-----------
Maine .9%
Bucksport Solid Waste Disposal Revenue, Champion International Corp. Project, 6.25%, 5/01/10 ..... 5,000,000 5,290,650
Maine Financial Authority, Solid Waste Recycling Facilities Revenue, Great Northern Paper Co., Bowater Project,
7.75%, 10/01/22 .................................................................................. 29,300,000 32,709,348
Maine Health and Higher Educational Facilities Authority Revenue, Series B, FSA Insured,
7.00%, 7/01/24 ................................................................................... 20,000 23,230
Pre-Refunded, 7.00%, 7/01/24 ..................................................................... 2,425,000 2,835,456
Maine State Housing Authority, Mortgage Purchase,
Series A-5, 6.20%, 11/15/16 ...................................................................... 2,500,000 2,628,425
Series C, 6.55%, 11/15/12 ........................................................................ 3,700,000 3,935,690
Series C, 6.65%, 11/15/24 ........................................................................ 3,500,000 3,716,580
Maine (cont.)
Maine State Housing Authority, Mortgage Purchase, (cont.)
Series D, 6.45%, 11/15/07 ........................................................................ $ 3,540,000 $ 3,726,664
Series D, 6.70%, 11/15/15 ........................................................................ 5,800,000 6,304,890
Rumford PCR, Boise Cascade Corp. Project, Refunding, 6.625%, 7/01/20 ............................. 4,800,000 5,257,104
-----------
66,428,037
-----------
Maryland 1.7%
Gaithersburg Hospital Facilities Revenue, Shady Grove Hospital, Refunding and Improvement,
Series A, Pre-Refunded, 8.25%, 9/01/21 ........................................................... 43,225,000 49,356,466
Series C, Pre-Refunded, 6.00%, 9/01/21 ........................................................... 10,110,000 11,134,851
Maryland State Community Development Administration, Department of Housing and Community Development,
MFHR, Series G, Mortgage Insured, 6.55%, 5/15/19 ................................................. 5,475,000 5,803,664
SF, 7.25%, 4/01/27 ............................................................................... 965,000 1,014,784
Maryland State Health & Higher Educational Facilities Authority Revenue,
Anne Arundel Medical Center, FSA Insured, 5.125%, 7/01/33 ........................................ 8,000,000 8,101,120
Johns Hopkins Medicine, MBIA Insured, 5.00%, 7/01/19 ............................................. 3,000,000 3,014,580
Montgomery County Housing Opportunity Community, SFMR, Refunding, Series B, 6.625%, 7/01/28 ...... 6,500,000 6,865,300
Takoma Park Hospital Facilities Revenue, Washington Adventist Hospital,
Refunding, Series A, Sub-Series 1, 8.25%, 9/01/21 ................................................ 20,125,000 22,356,661
Refunding, Series A, Sub-Series 1, 8.25%, 9/01/21 ................................................ 10,930,000 12,480,421
Series A, Sub-Series 2, 8.25%, 9/01/21 ........................................................... 5,000,000 5,701,950
-----------
125,829,797
-----------
Massachusetts 2.5%
Agawam Resource Recovery Revenue, Springfield Resource Recovery Project, Series 1986, 8.50%, 12/01/08 10,340,000 10,471,732
Massachusetts Health and Educational Facilities Authority Revenue, Notre Dame Health Care Center, Series A,
7.875%, 10/01/22 ................................................................................. 2,310,000 2,497,480
Massachusetts State Consolidated Loan, Series A, 7.50%, 6/01/04 .................................. 7,500,000 8,676,975
Massachusetts State GO, Refunding, Series B, 6.50%, 8/01/08 ...................................... 5,900,000 6,990,851
Massachusetts State Health and Educational Facilities Authority Revenue,
Framingham Union Hospital, Series B, Pre-Refunded, 8.50%, 7/01/20 ................................ 9,020,000 9,910,094
Melrose-Wakefield Hospital, ETM, Refunding, Series B, 6.35%, 7/01/06 ............................. 1,100,000 1,254,979
Sisters Providence Health System, Series A, Pre-Refunded, 6.50%, 11/15/08 ........................ 1,000,000 1,138,510
Sisters Providence Health System, Series A, Pre-Refunded, 6.625%, 11/15/22 ....................... 12,050,000 13,799,299
Massachusetts State HFA,
HDA, Series D, FGIC Insured, 6.875%, 11/15/21 .................................................... 5,250,000 5,658,398
Housing Projects, Refunding, Series A, 6.30%, 10/01/13 ........................................... 25,635,000 27,286,919
Housing Projects, Refunding, Series A, 6.375%, 4/01/21 ........................................... 24,750,000 26,417,408
Massachusetts State HFA Revenue, SF, Series 41,
6.30%, 12/01/14 .................................................................................. 6,250,000 6,706,750
6.35%, 6/01/17 ................................................................................... 5,750,000 6,141,000
Massachusetts State Housing Facilities Authority,
Series C, FGIC Insured, 6.90%, 11/15/21 .......................................................... 9,715,000 10,624,130
Series D, FGIC Insured, 6.80%, 11/15/12 .......................................................... 250,000 271,050
Massachusetts State Industrial Finance Agency, Health Care Facilities Revenue,
Jewish Geriatric Services, Inc., Series B,
5.375%, 5/15/17 .................................................................................. $ 1,965,000 $ 2,011,787
7.00%, 4/01/22 ................................................................................... 5,000,000 5,531,000
Massachusetts (cont.)
Massachusetts State Industrial Finance Agency Revenue, D. Youville Senior Care,
5.65%, 10/01/17 .................................................................................. $ 2,295,000 $ 2,374,246
5.70%, 10/01/27 .................................................................................. 7,375,000 7,628,995
Massachusetts State Port Authority Revenue, Special Facilities, Bosfuel Project, MBIA Insured, 5.75%, 11,750,000 12,351,365
7/01/39
Plymouth County COP, Series A,
7.00%, 4/01/12 ................................................................................... 10,000,000 11,100,100
5.50%, 5/15/27 ................................................................................... 5,000,000 5,149,000
-----------
183,992,068
-----------
Michigan 2.0%
Battle Creek Tax Increment Finance Authority, Pre-Refunded, 7.40%, 5/01/16 ....................... 2,000,000 2,369,920
Belding Area Schools GO,
FGIC Insured, 6.10%, 5/01/26 ..................................................................... 810,000 895,820
Pre-Refunded, FGIC Insured, 6.10%, 5/01/26 ....................................................... 2,995,000 3,420,949
Detroit GO,
Refunding, Series B, 6.375%, 4/01/06 ............................................................. 7,265,000 8,117,620
Refunding, Series B, 6.25%, 4/01/09 .............................................................. 625,000 687,413
Self-Insurance, Series A, 5.70%, 5/01/02 ......................................................... 2,250,000 2,366,753
Series A, Pre-Refunded, 6.70%, 4/01/10 ........................................................... 4,550,000 5,287,510
Detroit Sewage Disposal Revenue, Series A, MBIA Insured, 5.50%, 7/01/20 .......................... 29,200,000 30,635,180
Detroit/Wayne County Stadium Authority, FGIC Insured, 5.25%, 2/01/27 ............................. 4,235,000 4,315,296
Kalamazoo EDC Revenue, Limited Obligation, Friendship Village, Refunding, Series A, 6.25%, 5/15/27 2,000,000 2,105,580
Kalamazoo Hospital Finance Authority, Hospital Facility Revenue, Bronson Methodist Hospital, Refunding,
MBIA Insured, 5.50%, 5/15/28 ..................................................................... 4,180,000 4,357,692
Michigan State Building Authority Revenue, Series II, 6.25%, 10/01/20 ............................ 15,650,000 16,729,537
Michigan State HDA,
Rental Housing Revenue, Refunding, Series A, 6.60%, 4/01/12 ...................................... 5,000,000 5,407,500
SFMR, Series A, 6.45%, 12/01/14 .................................................................. 2,000,000 2,140,540
SFMR, Series A, 6.875%, 6/01/23 .................................................................. 2,200,000 2,338,248
Michigan State HFA Revenue,
Henry Ford Health, Refunding,Series A, 5.25%, 11/15/25 ........................................... 4,000,000 4,029,760
Hospital Genesys Regional Medical, Refunding, Series A, 5.50%, 10/01/18 .......................... 4,500,000 4,542,750
Hospital Genesys Regional Medical, Refunding, Series A, 5.50%, 10/01/27 .......................... 5,000,000 5,025,400
Presbyterian Villages Obligation Group, 5.30%, 1/01/99 ........................................... 200,000 200,286
Presbyterian Villages Obligation Group, 5.40%, 1/01/00 ........................................... 310,000 313,233
Presbyterian Villages Obligation Group, 5.70%, 1/01/01 ........................................... 310,000 316,526
Presbyterian Villages Obligation Group, 5.80%, 1/01/02 ........................................... 355,000 365,682
Presbyterian Villages Obligation Group, 5.90%, 1/01/03 ........................................... 325,000 337,565
Presbyterian Villages Obligation Group, 6.00%, 1/01/04 ........................................... 390,000 408,233
Presbyterian Villages Obligation Group, 6.375%, 1/01/15 .......................................... 275,000 296,175
Presbyterian Villages Obligation Group, 6.40%, 1/01/15 ........................................... 1,000,000 1,070,670
Presbyterian Villages Obligation Group, 6.50%, 1/01/25 ........................................... 3,500,000 3,746,260
Michigan State Hospital Finance Authority Revenue,
Oakwood Obligation Group, Refunding, Series A, FSA Insured, 5.125%, 8/15/25 ...................... 2,000,000 1,995,500
Oakwood Obligation Group, Refunding, Series A, FSA Insured, 5.00%, 8/15/31 ....................... 3,180,000 3,085,045
St. John's Hospital and Medical Center, AMBAC Insured, 5.25%, 5/15/26 ............................ 22,860,000 23,201,986
Michigan (cont.)
Michigan State Housing Development Authority, Limited Obligation Revenue Bonds, 6.625%, 9/15/19 .. $ 2,500,000 $ 2,685,475
-----------
142,796,104
-----------
Minnesota 2.0%
Agricultural and EDR, Health Care System, Fairview Hospital, Refunding, Series A, MBIA Insured, 25,810,000 28,325,185
5.75%, 11/15/26
Cloquet PCR, Potlach Corp. Projects, Refunding, 5.90%, 10/01/26 .................................. 9,100,000 9,682,127
Dakota County Housing, RDA, Limited Annual Appropriation Tax and Revenue, Development Housing Facilities Project,
7.25%, 1/01/99 ................................................................................... 600,000 601,326
7.25%, 1/01/00 ................................................................................... 645,000 654,901
7.25%, 1/01/01 ................................................................................... 695,000 712,264
7.50%, 1/01/06 ................................................................................... 3,930,000 4,067,825
8.00%, 1/01/07 ................................................................................... 2,140,000 2,186,695
International Falls PCR, Boise Cascade Corp. Project, Refunding, 5.65%, 12/01/22 ................. 3,500,000 3,472,525
Minneapolis CDA and St. Paul Housing RDA, Homeownership Mortgage Revenue, Joint Housing Program,
FGIC Insured, 9.875%, 12/01/15 ................................................................... 5,000 5,005
Minnesota State HFA, SFM, Series D-1,
6.45%, 7/01/11 ................................................................................... 3,415,000 3,644,864
6.50%, 1/01/17 ................................................................................... 1,355,000 1,441,883
Minnesota State Higher Educational Facilities Authority Revenue, University Saint Thomas, Series Four-P,
5.375%, 4/01/18 .................................................................................. 525,000 535,658
5.40%, 4/01/23 ................................................................................... 580,000 590,678
Minnetonka MFHR, Ridgepointe II Project, Refunding, Series A, 5.95%, 10/20/33 .................... 11,075,000 11,026,159
Red Wing Housing, RDA, Jordan Tower II Project, 7.00%, 1/01/19 ................................... 1,500,000 1,632,885
Rochester Health Care Facilities Revenue, Mayo Foundation, Series A, 5.50%, 11/15/27 ............. 29,000,000 30,517,280
Roseville MFHR, Rosepointe I Project, Refunding, Series A, 5.95%, 10/20/33 ....................... 8,695,000 8,656,655
St. Louis Park EDA, Tax Increment Revenue, Refunding, FGIC Insured, Pre-Refunded, 8.40%, 9/01/09 . 6,000,000 6,866,280
St. Paul Port Authority,
Energy Park, Tax Increment Revenue, Refunding, Pre-Refunded, 8.00%, 12/01/07 ..................... 3,500,000 3,582,950
IDR, Bandana Square, Series C, 7.70%, 12/01/00 ................................................... 230,000 229,397
IDR, Bandana Square, Series C, 7.70%, 12/01/01 ................................................... 255,000 253,559
IDR, Bandana Square, Series C, 7.70%, 12/01/02 ................................................... 270,000 269,390
IDR, Bandana Square, Series C, 7.70%, 12/01/07 ................................................... 1,690,000 1,512,229
IDR, Bandana Square, Series C, 7.80%, 12/01/12 ................................................... 3,465,000 2,964,793
IDR, Brown and Bigelow Co., Series 1979-2, 7.50%, 10/01/99 ....................................... 480,000 480,490
IDR, Brown and Bigelow Co., Series 1979-2, 7.50%, 10/01/00 ....................................... 515,000 516,118
IDR, Brown and Bigelow Co., Series 1979-2, 7.50%, 10/01/01 ....................................... 550,000 551,788
IDR, Brown and Bigelow Co., Series 1979-2, 7.50%, 10/01/02 ....................................... 595,000 597,523
IDR, Brown and Bigelow Co., Series 1979-2, 7.50%, 10/01/03 ....................................... 640,000 643,309
IDR, Brown and Bigelow Co., Series 1979-2, 7.50%, 10/01/04 ....................................... 685,000 689,137
IDR, Brown and Bigelow Co., Series 1979-2, 7.50%, 10/01/05 ....................................... 740,000 747,777
IDR, Brown and Bigelow Co., Series 1979-2, 7.50%, 10/01/06 ....................................... 795,000 803,355
IDR, Brown and Bigelow Co., Series 1979-2, 7.50%, 10/01/07 ....................................... 855,000 863,986
IDR, Brown and Bigelow Co., Series 1979-2, 7.50%, 10/01/08 ....................................... 915,000 924,617
IDR, Brown and Bigelow Co., Series 1979-2, 7.50%, 10/01/09 ....................................... 670,000 677,042
IDR, Common Bond Fund, Fort Road Medical Center, Refunding, Series C, 7.95%, 9/01/01 ............. 140,000 139,090
IDR, Common Bond Fund, Fort Road Medical Center, Refunding, Series C, 7.95%, 9/01/02 ............. 155,000 154,481
IDR, Common Bond Fund, Fort Road Medical Center, Refunding, Series C, 7.95%, 9/01/10 ............. 1,705,000 1,497,382
Minnesota (cont.)
St. Paul Port Authority, (cont.)
IDR, Common Bond Fund, Ideal Security Hardware Corp., Refunding, Series F, 8.00%, 12/01/01 ....... $ 105,000 $ 104,381
IDR, Common Bond Fund, Ideal Security Hardware Corp., Refunding, Series F, 8.00%, 12/01/02 ....... 115,000 114,702
IDR, Common Bond Fund, Ideal Security Hardware Corp., Refunding, Series F, 8.00%, 12/01/12 ....... 1,790,000 1,558,768
Washington County Housing RDA,
Housing Development Revenue, Orleans Apartments, Project A, 8.25%, 7/01/21 ....................... 3,000,000 3,071,640
Housing Development Revenue, Raymie Johnson Apartments, Pre-Refunded, 7.70%, 12/01/19 ............ 5,210,000 5,911,527
Pooled Housing and Redevelopment, 7.20%, 1/01/22 ................................................. 5,885,000 6,311,604
-----------
149,791,230
-----------
Mississippi 1.2%
Claiborne County PCR, Systems Energy Resources, Inc., Refunding,
7.30%, 5/01/25 ................................................................................... 5,700,000 6,000,504
6.20%, 2/01/26 ................................................................................... 36,500,000 37,729,685
bMississippi Business Finance Corporation PCR, Systems Energy Resources Inc. Project, 5.875%, 4/01/22 40,000,000 39,999,600
Mississippi Home Corp., SFR, Refunding, Senior Series A, FGIC Insured, 9.25%, 3/01/12 ............ 1,260,000 1,340,451
Mississippi State Educational Facilities Authority Revenue, Private Nonprofit Institutions of Higher Learning,
Tougaloo College Project, Series A, 6.50%, 6/01/18 ............................................... 2,335,000 2,436,106
-----------
87,506,346
-----------
Missouri .3%
Hazelwood IDA, MFHR, Lakes Apartments Project, Refunding, Series A, 6.10%, 9/20/26 ............... 3,000,000 3,158,910
Missouri State Health and Educational Facilities Authority Revenue, Series B, MBIA Insured, 6.25%, 5,000,000 5,407,550
2/15/12
St. Louis Parking Facilities Revenue, Pre-Refunded, 6.625%, 12/15/21 ............................. 6,000,000 6,766,920
Taney County IDA, Hospital Revenue, The Skaggs Community Hospital Association, 5.40%, 5/15/28 .... 4,000,000 4,027,240
West Plains IDA, Hospital Revenue, Ozarks Medical Center Project, Series A, Pre-Refunded, 8.625%, 3,510,000 3,855,665
9/15/20
-----------
23,216,285
-----------
Montana .8%
Forsyth County PCR,
Puget Sound Power and Light Co. Project, AMBAC Insured, 6.80%, 3/01/22 ........................... 10,000,000 10,952,800
The Montana Power Co. Colstrip Project, Refunding, Series A, 6.125%, 5/01/23 ..................... 3,250,000 3,459,690
The Montana Power Co., Refunding, Series B, AMBAC Insured, 5.90%, 12/01/23 ....................... 4,225,000 4,586,111
The Montana Power Co., Refunding, Series B, MBIA Insured, 5.90%, 12/01/23 ........................ 20,385,000 22,127,306
Montana State Health Facilities Authority Revenue,
Montana Developmental Center Project, 6.40%, 6/01/19 ............................................. 2,000,000 2,173,200
Sisters of Charity Leavenworth, MBIA Insured, 5.125%, 12/01/18 ................................... 5,000,000 5,067,050
Montana State Housing Board, SF Program, Refunding,
Series A, 6.50%, 12/01/22 ........................................................................ 2,835,000 2,992,116
Series B-1, 6.25%, 12/01/21 ...................................................................... 6,720,000 7,145,040
-----------
58,503,313
-----------
Nebraska .2%
Lancaster County Hospital Authority No. 1, Hospital Revenue, Bryan Memorial Project, Series B, MBIA Insured,
5.375%, 6/01/22 .................................................................................. 6,500,000 6,746,740
Nebraska Investment Financial Authority, 7.00%, 11/01/09 ......................................... 5,580,000 5,689,089
-----------
12,435,829
-----------
Nevada 3.1%
Churchill County Health Care Facilities Revenue, Western Health Network, Series A, MBIA Insured, $ 2,000,000 $ 2,203,840
6.25%, 1/01/14
Clark County HFC, MFHR, FHA Insured, 7.75%, 7/01/23 .............................................. 5,065,000 5,243,744
Clark County IDR,
Nevada Power Co. Project, Refunding, Series B, 5.90%, 10/01/30 ................................... 15,000,000 15,318,900
Nevada Power Co. Project, Refunding, Series C, 7.20%, 10/01/22 ................................... 12,500,000 13,807,000
Nevada Power Co. Project, Series A, 5.90%, 11/01/32 .............................................. 2,600,000 2,663,102
Southwest Gas Corp., Series A, 7.30%, 9/01/27 .................................................... 18,080,000 20,002,627
Southwest Gas Corp., Series A, 6.50%, 12/01/33 ................................................... 10,000,000 10,862,500
Southwest Gas Corp., Series B, 7.50%, 9/01/32 .................................................... 62,470,000 69,312,964
Humboldt County PCR, Sierra Pacific Power Co., Refunding, Series A, AMBAC Insured, 6.30%, 7/01/22 4,500,000 4,862,430
Nevada Housing Division,
Issue C-2, Refunding, 6.75%, 10/01/26 ............................................................ 8,190,000 8,765,020
Multi-Unit Housing Revenue, Issue B, 6.55%, 10/01/25 ............................................. 5,405,000 5,876,424
SF Program, Issue A, FI/GML, 8.30%, 10/01/19 ..................................................... 2,655,000 2,894,959
SF Program, Issue A-2, FI/GML, 8.375%, 10/01/19 .................................................. 2,045,000 2,243,651
SF Program, Program A-1, Refunding, 6.25%, 10/01/26 .............................................. 3,870,000 4,102,355
Nevada State Colorado River, Series 1994, Pre-Refunded, 6.50%, 7/01/24 ........................... 15,915,000 18,081,350
Nevada State Municipal Bond Bank Project No. 40-41-A, ETM, 6.375%, 12/01/17 ...................... 10,275,000 11,348,840
Reno RDA, Tax Allocation,
Downtown Redevelopment Project, Series C, Pre-Refunded, 7.75%, 9/01/05 ........................... 2,695,000 2,943,668
Downtown Redevelopment Project, Series D, 7.625%, 9/01/16 ........................................ 4,255,000 4,737,134
Downtown Redevelopment Project, Series D, Pre-Refunded, 7.625%, 9/01/16 .......................... 4,035,000 4,492,206
Refunding, Series A, 6.20%, 6/01/18 .............................................................. 3,000,000 3,141,210
Washoe County Gas and Water Facilities Revenue, Refunding, AMBAC Insured, 6.30%, 12/01/14 ........ 5,000,000 5,448,900
Washoe County Hospital Facility Revenue, Washoe Medical Center, Inc. Project, Series A, AMBAC Insured,
6.25%, 6/01/13 ................................................................................... 9,295,000 10,380,470
-----------
228,733,294
-----------
New Hampshire 1.6%
Nashua Housing Authority, MFR, Clocktower Project, Refunding, FGIC Insured, 6.25%, 6/20/33 ....... 6,154,000 6,556,964
New Hampshire Higher Education and Health Facilities Authority Revenue,
Kendal at Hanover Project, Pre-Refunded, 8.00%, 10/01/19 ......................................... 9,250,000 9,836,728
New Hampshire Catholic Charities, 5.80%, 8/01/22 ................................................. 1,000,000 1,013,460
Rivier College, 5.60%, 1/01/28 ................................................................... 4,590,000 4,608,544
St. Joseph Hospital, 7.50%, 1/01/16 .............................................................. 2,300,000 2,464,749
The Hitchcock Clinic, MBIA Insured, 6.00%, 7/01/27 ............................................... 4,275,000 4,694,549
New Hampshire State HFA,
MFHR, Series 1, 7.10%, 1/01/14 ................................................................... 4,920,000 5,208,214
SFMR, Series E, 6.75%, 7/01/19 ................................................................... 5,675,000 6,128,262
SFMR, Series E, 6.80%, 7/01/25 ................................................................... 4,245,000 4,583,411
New Hampshire State IDA, Pollution Control Public Service Co.,
Project A, 7.65%, 5/01/21 ........................................................................ 6,870,000 7,299,787
Project B, 7.50%, 5/01/21 ........................................................................ 50,690,000 53,808,449
Project C, 7.65%, 5/01/21 ........................................................................ 7,450,000 7,916,072
-----------
114,119,189
-----------
New Jersey .4%
Mercer County Improvement Authority, Solid Waste, Refunding, 5.75%, 9/15/16 ...................... $ 2,500,000 $ 2,701,275
New Jersey Health Care Facilities, Financing Authority Revenue,
Cathedral Health Services, Pre-Refunded, 7.25%, 2/15/21 .......................................... 3,975,000 4,362,920
Cathedral Health Services, Refunding, MBIA Insured, 5.25%, 8/01/21 ............................... 7,865,000 8,162,218
Hackensack University Medical Center, Refunding, Series B, MBIA Insured, 5.20%, 1/01/28 .......... 7,000,000 7,149,100
Zurbrugg Memorial Hospital, Series C, 8.50%, 7/01/12 ............................................. 4,150,000 4,123,772
-----------
26,499,285
-----------
New Mexico .8%
Farmington PCR, Public Service Co. of New Mexico, Refunding, Series A, AMBAC Insured, 6.375%, 12/15/22 10,435,000 11,413,907
Lordsburg PCR, Phelps Dodge Corp. Project, Refunding, 6.50%, 4/01/13 ............................. 17,000,000 18,538,670
New Mexico State Mortgage Financial Authority, SFM, Refunding, Series A, 6.85%, 7/01/10 .......... 11,265,000 11,977,286
University of New Mexico Revenue, Series 1989, Pre-Refunded, 7.90%, 6/01/19 ...................... 17,000,000 17,799,850
-----------
59,729,713
-----------
New York 17.1%
Long Island Power Authority, Electric Systems Revenue, General Series A,
5.25%, 12/01/26 .................................................................................. 8,095,000 8,157,574
5.50%, 12/01/29 .................................................................................. 20,165,000 20,816,330
MTA Revenue,
Commuter Facilities, Series A, 5.25%, 7/01/28 .................................................... 5,000,000 5,078,150
Commuter Facilities, Series A, FGIC Insured, 6.00%, 7/01/16 ...................................... 8,950,000 9,987,753
Commuter Facilities, Series A, FGIC Insured, 6.00%, 7/01/21 ...................................... 9,225,000 10,567,422
Commuter Facilities, Series A, FGIC Insured, 6.10%, 7/01/26 ...................................... 11,050,000 12,730,263
Commuter Facilities, Series C-1, FGIC Insured, 5.375%, 7/01/27 ................................... 10,000,000 10,356,400
Dedicated Tax Fund, Series A, MBIA Insured, 5.25%, 4/01/26 ....................................... 11,125,000 11,357,068
Transit Facilities, Refunding, Series M, 6.00%, 7/01/14 .......................................... 18,210,000 19,463,941
Transit Facilities, Series A, FSA Insured, 6.00%, 7/01/16 ........................................ 3,630,000 4,043,348
Transit Facilities, Series A, FSA Insured, 6.10%, 7/01/21 ........................................ 6,260,000 7,211,896
Transit Facilities, Series C-1, 5.625%, 7/01/27 .................................................. 10,800,000 11,362,680
Transit Facilities, Service Contract, Refunding, Series 8, 5.375%, 7/01/21 ....................... 15,000,000 15,409,350
New Rochelle IDA, Civic Facilities Revenue, College of New Rochelle Project, 6.625%, 7/01/12 ..... 1,245,000 1,330,395
New York City GO,
ETM, Series B, 8.00%, 6/01/01 .................................................................... 3,000,000 3,325,620
ETM, Series D, 8.00%, 8/01/99 .................................................................... 1,805,000 1,870,576
ETM, Series D, 7.30%, 2/01/01 .................................................................... 4,620,000 4,984,610
Group B, Series D, 8.25%, 8/01/11 ................................................................ 15,000 16,811
Group B, Series D, 8.25%, 8/01/12 ................................................................ 30,000 33,622
Refunding, Series B, 6.20%, 8/15/06 .............................................................. 1,500,000 1,684,740
Refunding, Series E, 6.00%, 8/01/26 .............................................................. 2,765,000 2,992,864
Refunding, Series F, 6.00%, 8/01/13 .............................................................. 14,000,000 15,343,860
Refunding, Series F, 5.25%, 8/01/15 .............................................................. 20,580,000 20,981,310
Refunding, Series H, 6.25%, 8/01/15 .............................................................. 13,035,000 14,535,589
Refunding, Series H, 6.125%, 8/01/25 ............................................................. 65,785,000 72,031,944
Refunding, Series J, 6.00%, 8/01/21 .............................................................. 28,260,000 30,736,706
Series A, 6.125%, 8/01/06 ........................................................................ 14,500,000 16,065,420
Series A, 6.20%, 8/01/07 ......................................................................... 21,030,000 23,494,295
New York (cont.)
New York City GO, (cont.)
Series A, 6.25%, 8/01/08 ......................................................................... $ 4,390,000 $ 4,879,792
Series A, 7.75%, 8/15/13 ......................................................................... 105,000 116,460
Series A, 7.75%, 8/15/14 ......................................................................... 120,000 132,964
Series A, 6.25%, 8/01/16 ......................................................................... 3,280,000 3,539,415
Series A, 7.75%, 8/15/17 ......................................................................... 15,000 16,629
Series A, Pre-Refunded, 6.20%, 8/01/07 ........................................................... 780,000 878,662
Series A, Pre-Refunded, 8.00%, 3/15/12 ........................................................... 1,000,000 1,075,760
Series A, Pre-Refunded, 8.00%, 3/15/13 ........................................................... 1,850,000 1,990,156
Series A, Pre-Refunded, 7.75%, 8/15/13 ........................................................... 4,705,000 5,280,751
Series A, Pre-Refunded, 8.00%, 3/15/14 ........................................................... 13,400,000 14,415,184
Series A, Pre-Refunded, 7.75%, 8/15/14 ........................................................... 125,000 140,296
Series A, Pre-Refunded, 8.00%, 3/15/15 ........................................................... 1,115,000 1,199,472
Series A, Pre-Refunded, 8.00%, 3/15/16 ........................................................... 3,000,000 3,227,280
Series A, Pre-Refunded, 6.25%, 8/01/16 ........................................................... 1,720,000 1,891,140
Series A, Pre-Refunded, 8.00%, 3/15/17 ........................................................... 11,660,000 12,543,362
Series A, Pre-Refunded, 7.75%, 8/15/17 ........................................................... 3,270,000 3,670,150
Series A, Pre-Refunded, 8.00%, 8/15/20 ........................................................... 5,000 5,645
Series B, 8.25%, 6/01/02 ......................................................................... 205,000 230,174
Series B, 7.50%, 2/01/04 ......................................................................... 10,000,000 11,182,000
Series B, 8.25%, 6/01/05 ......................................................................... 1,000,000 1,226,660
Series B, 6.30%, 8/15/08 ......................................................................... 22,360,000 25,103,796
Series B, 6.125%, 8/01/09 ........................................................................ 11,510,000 12,629,002
Series B, 6.375%, 8/15/10 ........................................................................ 17,170,000 19,244,479
Series B, 7.50%, 10/01/11 ........................................................................ 75,000 78,593
Series B, 7.50%, 10/01/12 ........................................................................ 125,000 130,931
Series B, 6.75%, 10/01/15 ........................................................................ 25,000 27,574
Series B, 6.75%, 10/01/17 ........................................................................ 10,000 11,122
Series B, 7.00%, 2/01/19 ......................................................................... 14,440,000 15,823,063
Series B, 6.00%, 8/15/26 ......................................................................... 1,670,000 1,808,092
Series B, Pre-Refunded, 8.25%, 6/01/02 ........................................................... 4,295,000 4,846,220
Series B, Pre-Refunded, 6.30%, 8/15/08 ........................................................... 4,515,000 5,160,600
Series B, Pre-Refunded, 6.375%, 8/15/10 .......................................................... 4,570,000 5,243,618
Series B, Pre-Refunded, 7.50%, 10/01/11 .......................................................... 6,925,000 7,306,221
Series B, Pre-Refunded, 7.50%, 10/01/12 .......................................................... 10,860,000 11,457,843
Series B, Pre-Refunded, 6.75%, 10/01/15 .......................................................... 25,000 28,026
Series B, Pre-Refunded, 6.75%, 10/01/17 .......................................................... 1,290,000 1,448,657
Series B, Pre-Refunded, 7.00%, 2/01/19 ........................................................... 560,000 623,381
Series B, Pre-Refunded, 6.00%, 8/15/26 ........................................................... 330,000 376,180
Series B, Sub-Series B-1, Pre-Refunded, 7.00%, 8/15/16 ........................................... 3,000,000 3,500,910
Series B-1, Pre-Refunded, 7.30%, 8/15/11 ......................................................... 8,000,000 9,436,160
Series C, Pre-Refunded, 7.25%, 8/15/24 ........................................................... 3,540,000 3,878,707
Series C, Sub-Series C-1, 7.00%, 8/01/17 ......................................................... 25,000 27,729
Series C, Sub-Series C-1, 7.00%, 8/01/18 ......................................................... 680,000 753,467
Series C, Sub-Series C-1, Pre-Refunded, 7.00%, 8/01/17 ........................................... 1,905,000 2,147,545
Series C, Sub-Series C-1, Pre-Refunded, 7.00%, 8/01/18 ........................................... 1,025,000 1,155,503
Series D, 8.00%, 8/01/99 ......................................................................... 195,000 201,997
New York (cont.)
New York City GO, (cont.)
Series D, 7.30%, 2/01/01 ......................................................................... $ 380,000 $ 408,629
Series D, 7.50%, 2/01/16 ......................................................................... 40,000 44,469
Series D, 8.00%, 8/01/16 ......................................................................... 5,000 5,566
Series D, 6.00%, 2/15/25 ......................................................................... 28,255,000 30,250,368
Series D, 6.00%, 2/15/25 ......................................................................... 3,045,000 3,403,792
Series D, Pre-Refunded, 8.25%, 8/01/11 ........................................................... 145,000 164,413
Series D, Pre-Refunded, 8.25%, 8/01/12 ........................................................... 11,095,000 12,580,399
Series D, Pre-Refunded, 8.25%, 8/01/13 ........................................................... 7,750,000 8,787,570
Series D, Pre-Refunded, 8.25%, 8/01/14 ........................................................... 4,340,000 4,914,920
Series D, Pre-Refunded, 7.625%, 2/01/15 .......................................................... 9,000,000 10,203,750
Series D, Pre-Refunded, 7.50%, 2/01/16 ........................................................... 4,960,000 5,604,602
Series D, Pre-Refunded, 8.00%, 8/01/16 ........................................................... 45,000 50,733
Series D, Pre-Refunded, 7.50%, 2/01/17 ........................................................... 12,000,000 13,559,520
Series D, Pre-Refunded, 8.00%, 8/01/17 ........................................................... 100,000 112,741
Series D, Pre-Refunded, 8.00%, 8/01/18 ........................................................... 50,000 56,371
Series D, Pre-Refunded, 8.00%, 8/01/19 ........................................................... 30,000 33,822
Series D, Pre-Refunded, 8.00%, 8/15/21 ........................................................... 15,000 16,934
Series E, 5.75%, 2/15/09 ......................................................................... 5,295,000 5,702,291
Series E, 6.50%, 12/01/12 ........................................................................ 135,000 136,280
Series E, Pre-Refunded, 5.75%, 2/15/09 ........................................................... 3,205,000 3,513,577
Series E, Pre-Refunded, 6.00%, 8/01/26 ........................................................... 235,000 267,761
Series F, 8.20%, 11/15/04 ........................................................................ 195,000 220,988
Series F, 6.50%, 2/15/07 ......................................................................... 1,545,000 1,749,342
Series F, 6.60%, 2/15/10 ......................................................................... 3,740,000 4,232,969
Series F, Pre-Refunded, 8.20%, 11/15/04 .......................................................... 5,140,000 5,882,216
Series F, Pre-Refunded, 6.50%, 2/15/07 ........................................................... 6,505,000 7,450,567
Series F, Pre-Refunded, 6.50%, 2/15/08 ........................................................... 7,540,000 8,636,014
Series F, Pre-Refunded, 6.60%, 2/15/10 ........................................................... 12,260,000 14,109,544
Series F, Pre-Refunded, 8.25%, 11/15/15 .......................................................... 2,000,000 2,291,640
Series F, Pre-Refunded, 8.25%, 11/15/17 .......................................................... 2,500,000 2,864,550
Series G, 6.00%, 10/15/26 ........................................................................ 175,000 200,907
Series G, Pre-Refunded, 6.00%, 10/15/26 .......................................................... 15,160,000 16,488,622
Series H, 7.10%, 2/01/12 ......................................................................... 330,000 363,337
Series H, 7.20%, 2/01/14 ......................................................................... 1,040,000 1,146,850
Series H, 7.00%, 2/01/16 ......................................................................... 340,000 372,892
Series H, Pre-Refunded, 7.10%, 2/01/12 ........................................................... 2,670,000 2,980,281
Series H, Pre-Refunded, 7.20%, 2/01/14 ........................................................... 8,960,000 10,028,301
Series H, Pre-Refunded, 7.00%, 2/01/16 ........................................................... 3,660,000 4,074,239
Series H-1, 6.125%, 8/01/11 ...................................................................... 4,900,000 5,376,378
Series H-1, Pre-Refunded, 6.125%, 8/01/09 ........................................................ 240,000 269,441
Series H-1, Pre-Refunded, 6.125%, 8/01/11 ........................................................ 100,000 112,267
Series I, 6.25%, 4/15/13 ......................................................................... 28,520,000 31,828,035
Series I, 6.25%, 4/15/27 ......................................................................... 4,250,000 4,680,398
Series I, Pre-Refunded, 6.25%, 4/15/13 ........................................................... 8,090,000 9,378,494
Series I, Pre-Refunded, 6.25%, 4/15/27 ........................................................... 2,750,000 3,187,993
New York (cont.)
New York City Health and Hospital Authority Local Government Revenue, Series A,
6.00%, 2/15/07 ................................................................................... $ 5,010,000 $ 5,335,550
6.30%, 2/15/20 ................................................................................... 18,235,000 19,294,089
New York City IDA, IDR, Brooklyn Navy Yard Cogeneration Partners,
5.65%, 10/01/28 .................................................................................. 5,000,000 5,077,700
5.75%, 10/01/36 .................................................................................. 5,750,000 5,884,148
New York City Municipal Water Finance Authority, Water and Sewer System Revenue,
Series A, 7.10%, 6/15/12 ......................................................................... 2,455,000 2,668,560
Series A, 7.00%, 6/15/15 ......................................................................... 4,980,000 5,391,896
Series B, 5.875%, 6/15/26 ........................................................................ 6,500,000 7,012,070
Series B, 5.75%, 6/15/29 ......................................................................... 15,000,000 16,098,150
Series B, MBIA Insured, 5.75%, 6/15/26 ........................................................... 3,000,000 3,228,540
New York State Dormitory Authority Lease Revenue, State University Dormitory Facilities, 5.50%, 7/01/27 8,915,000 9,328,656
New York State Dormitory Authority Revenue,
City University General Resources, Series 2, MBIA Insured, 6.25%, 7/01/19 ........................ 4,000,000 4,537,200
City University System Consolidation, Series 1, 5.375%, 7/01/24 .................................. 23,000,000 23,709,320
City University System Consolidation, Third Issue-1, 5.25%, 7/01/25 .............................. 10,000,000 10,209,300
City University System, Third Generation Resources, Refunding, Series 2, 6.00%, 7/01/26 .......... 5,500,000 5,994,890
City University System, Third Generation Resources, Refunding, Series 2, Pre-Refunded, 6.00%, 7/01/26 14,150,000 16,158,593
City University System, Third Generation Resources, Series 2, 6.00%, 7/01/20 ..................... 16,860,000 18,331,709
Mental Health Services Facilities, Series A, 6.00%, 8/15/17 ...................................... 18,000,000 19,768,140
Mental Health Services Facilities, Series A, 5.75%, 2/15/27 ...................................... 5,000,000 5,394,100
Our Lady Nursing Home, FHA Insured, 5.90%, 8/01/20 ............................................... 6,750,000 7,185,173
Saint Barnabas Hospital, 5.35%, 8/01/17 .......................................................... 5,500,000 5,642,285
Second Hospital, Interfaith Medical Center, Series D, 5.30%, 2/15/19 ............................. 5,000,000 5,050,350
Second Hospital, Interfaith Medical Center, Series D, 5.40%, 2/15/28 ............................. 8,000,000 8,086,880
State University Educational Facilities, 5.125%, 5/15/21 5,000,000 5,018,100
State University Educational Facilities, Pre-Refunded, 6.00%, 5/15/18 ............................ 5,000,000 5,701,250
State University Educational Facilities, Refunding, Series B, 7.375%, 5/15/14 .................... 4,240,000 4,541,337
State University Educational Facilities, Refunding, Series B, 7.00%, 5/15/16 ..................... 2,000,000 2,128,920
New York State Energy Research and Development Authority, Electric Facilities Revenue,
Consolidated Edison Co., Refunding, Series A, 6.10%, 8/15/20 ..................................... 8,500,000 9,208,730
Long Island Light, Series A, 7.15%, 6/01/20 ...................................................... 17,500,000 19,178,600
Long Island Light, Series A, 7.15%, 2/01/22 ...................................................... 1,500,000 1,643,880
New York State HFA,
Health Facilities, New York City, Refunding, Series A, 5.90%, 5/01/05 ............................ 14,070,000 15,250,473
Housing Project Mortgage, Refunding, Series A, FSA Insured, 6.10%, 11/01/15 ...................... 5,475,000 5,882,888
Housing Project Mortgage, Refunding, Series A, FSA Insured, 6.125%, 11/01/20 ..................... 4,230,000 4,536,548
Service Contract Revenue, Refunding, Series C, 5.875%, 9/15/14 ................................... 4,675,000 4,989,861
Service Contract Revenue, Refunding, Series C, 6.125%, 3/15/20 ................................... 25,500,000 27,364,815
Service Contract Revenue, Refunding, Series C, 5.50%, 9/15/22 .................................... 17,505,000 18,255,614
Service Contract Revenue, Series A, 6.375%, 9/15/14 .............................................. 25,000 27,803
Service Contract Revenue, Series A, 6.375%, 9/15/16 .............................................. 3,785,000 4,194,916
Service Contract Revenue, Series A, Pre-Refunded, 6.375%, 9/15/14 ................................ 3,130,000 3,582,316
Service Contract Revenue, Series A, Pre-Refunded, 6.50%, 3/15/25 ................................. 10,000,000 11,672,300
New York State Medical Care Facilities, Financial Agency Revenue,
Hospital and Nursing Home, FSA Mortgage Insured, 6.50%, 2/15/34 .................................. 6,945,000 7,617,971
New York (cont.)
New York State Medical Care Facilities, Financial Agency Revenue, (cont.)
Hospital and Nursing Home, Refunding, FSA Mortgage Insured, 6.40%, 8/15/14 ....................... $ 10,665,000 $ 11,764,135
Hospital Mortgage, Series A, AMBAC Insured, Pre-Refunded, 6.50%, 8/15/29 ......................... 7,600,000 8,786,968
The Hospital for Special Surgery, Series A, 6.375%, 8/15/24 ...................................... 12,500,000 14,251,375
New York State Tollway Authority,
General Revenue, Series D, 5.375%, 1/01/27 ....................................................... 5,000,000 5,119,550
Service Contract Revenue, Local Highway and Bridge, 6.25%, 4/01/14 ............................... 11,600,000 13,242,096
Service Contract Revenue, Local Highway and Bridge, 5.75%, 4/01/16 ............................... 13,200,000 13,924,944
New York State Urban Development Corp., Correctional Capital Facilities, Series 5, 6.10%, 1/01/12 7,685,000 8,544,183
New York State Urban Development Corp. Revenue, Youth Facilities, 6.00%, 4/01/17 ................. 11,720,000 12,840,315
Warren and Washington Counties IDA Revenue, Adirondack Resource Recovery Project, Refunding, Series A,
7.90%, 12/15/07 .................................................................................. 4,490,000 4,651,550
-----------
1,247,115,415
-------------
North Carolina 2.7%
Charlotte-Mecklenberg Hospital Authority, Health Care System Revenue,
5.90%, 1/15/16 ................................................................................... 7,010,000 7,544,933
Pre-Refunded, 5.90%, 1/15/16 ..................................................................... 2,890,000 3,264,024
Series A, 5.875%, 1/15/26 ........................................................................ 5,000,000 5,311,400
North Carolina Eastern Municipal Power Agency, Power System Revenue,
Refunding, Series A, 6.50%, 1/01/17 .............................................................. 25,700,000 27,406,737
Refunding, Series A, 6.50%, 1/01/24 .............................................................. 3,250,000 3,259,718
Refunding, Series B, 6.25%, 1/01/12 .............................................................. 6,875,000 7,224,800
Refunding, Series B, 6.00%, 1/01/22 .............................................................. 1,250,000 1,371,138
Refunding, Series B, 6.25%, 1/01/23 .............................................................. 39,030,000 44,219,039
Refunding, Series B, FGIC Insured, 6.25%, 1/01/23 ................................................ 4,000,000 4,378,520
Refunding, Series B, MBIA Insured, 5.80%, 1/01/16 ................................................ 11,175,000 12,296,411
Refunding, Series B, MBIA Insured, 5.75%, 12/01/16 ............................................... 14,420,000 14,944,311
Series B, 6.00%, 1/01/05 ......................................................................... 1,355,000 1,460,162
Series B, 6.00%, 1/01/14 ......................................................................... 16,000,000 16,691,520
Series D, 5.875%, 1/01/13 ........................................................................ 7,440,000 7,732,913
Series G, 5.875%, 1/01/21 ........................................................................ 13,325,000 14,595,406
North Carolina Municipal Power Agency No. 1, Catawba Electric Revenue,
6.25%, 1/01/17 ................................................................................... 9,720,000 10,336,151
Refunding, 5.75%, 1/01/15 ........................................................................ 12,435,000 12,594,168
Wake County IPC, Financing Authority Revenue, Carolina Power and Light, 6.90%, 4/01/09 ........... 5,000,000 5,287,450
-----------
199,918,801
-----------
North Dakota .4%
Dickinson Health Care Facilities Revenue, BHS Long-Term Care, Inc., 7.625%, 2/15/20 .............. 7,750,000 8,128,123
Ellendale MFHR, Ellendale Manor Apartments Project, 9.75%, 7/01/16 ............................... 249,000 249,697
Mercer County PCR, Basin Electric Power Corp.,
Second Series, AMBAC Insured, 6.05%, 1/01/19 ..................................................... 9,130,000 10,073,951
Series E, 7.00%, 1/01/19 ......................................................................... 11,540,000 11,930,167
Wahpeton MFHR, Evergreen Apartments Project, 9.75%, 7/01/16 ...................................... 710,000 712,059
-----------
31,093,997
-----------
Ohio 1.7%
Dayton Special Facilities Revenue, Emery Air Freight Corp., Refunding,
Emery Worldwide Air, Inc., Series E, 6.05%, 10/01/09 ............................................. $ 4,000,000 $ 4,311,240
Emery Worldwide Air, Inc., Series F, 6.05%, 10/01/09 ............................................. 2,750,000 2,963,978
Series A, 5.625%, 2/01/18 ........................................................................ 6,000,000 6,147,720
Franklin County Convention Facilities Authority, Tax and Lease Revenue Anticipation Bonds, MBIA Insured, 5.00%,
12/01/27 ......................................................................................... 7,500,000 7,488,300
Hamilton County Hospital Facilities Revenue, Childrens Hospital Medical Center, Series G, MBIA Insured, 5.00%,
5/15/23 .......................................................................................... 10,000,000 9,916,000
Montgomery County Health Systems Revenue,
Franciscan at Saint Leonard, Refunding, 5.50%, 7/01/18 ........................................... 3,625,000 3,676,040
Franciscan Facility, Series B-2, 8.10%, 7/01/01 .................................................. 1,400,000 1,489,796
Franciscan Medical Center-Dayton, 5.50%, 7/01/18 ................................................. 1,995,000 2,021,414
Series B-2, 8.10%, 7/01/18 ....................................................................... 3,705,000 4,449,779
Series B-2, Pre-Refunded, 8.10%, 7/01/18 ......................................................... 8,295,000 10,609,471
Montgomery County Hospital Revenue, Refunding, Grandview Hospital and Medical Center,
5.50%, 12/01/10 .................................................................................. 1,300,000 1,345,760
5.60%, 12/01/11 .................................................................................. 1,000,000 1,035,020
5.65%, 12/01/12 .................................................................................. 925,000 953,379
Ohio HFA, Residential Mortgage Revenue,
Series A-1, GNMA Secured, 5.40%, 9/01/29 ......................................................... 5,870,000 5,938,973
Series C, 5.75%, 9/01/28 ......................................................................... 7,745,000 8,048,062
Ohio State Air Quality Development Authority Revenue,
Dayton Power and Light Co. Project, Refunding, 6.10%, 9/01/30 .................................... 12,000,000 12,998,280
Toledo Edison, Series B, 8.00%, 5/15/19 .......................................................... 6,325,000 6,717,403
Ohio State EDR, Good Samaritan Medical Center, Series 1990-3, 7.875%, 12/01/10 ................... 1,515,000 1,606,415
Ohio State Solid Waste Disposal Revenue, USG Corp. Project, 5.65%, 3/01/33 ....................... 5,330,000 5,356,117
Ohio State Water Development Authority Revenue, Dayton Power, Refunding, Series A, 6.40%, 8/15/27 3,250,000 3,519,490
Ohio State Water Development Facilities Authority, PCR, Toledo Edison, Series A, 8.00%, 5/15/19 .. 10,000,000 10,620,400
University of Cincinnati COP, University Center Project, MBIA Insured, 5.125%, 6/01/24 ........... 10,500,000 10,612,140
-----------
121,825,177
-----------
Oklahoma 1.2%
Canadian County HFA, SFMR, Series A,
7.70%, 9/01/05 ................................................................................... 1,285,000 1,335,513
7.80%, 9/01/12 ................................................................................... 2,685,000 2,792,937
Oklahoma State Turnpike System Authority, First Senior Revenue,
7.875%, 1/01/21 .................................................................................. 610,000 625,817
Pre-Refunded, 7.875%, 1/01/21 .................................................................... 19,090,000 19,615,739
Stillwater Medical Center Authority Revenue,
Series A, 6.10%, 5/15/09 ......................................................................... 3,440,000 3,691,430
Series B, 6.35%, 5/15/12 ......................................................................... 1,235,000 1,333,417
Series B, 6.50%, 5/15/19 ......................................................................... 3,390,000 3,694,931
Tulsa County Home Financial Authority, Mortgage Revenue, Series D, GNMA Insured, 6.95%, 12/01/22 . 445,000 471,055
Tulsa County Municipal Airport Revenue, American Airlines, Inc.,
7.35%, 12/01/11 .................................................................................. 4,000,000 4,459,680
6.25%, 6/01/20 ................................................................................... 18,530,000 19,742,789
7.375%, 12/01/20 ................................................................................. 11,000,000 11,747,340
Oklahoma (cont.)
Tulsa County Parking Authority, Series B,
6.90%, 12/01/07 .................................................................................. $ 3,000,000 $ 3,327,120
7.00%, 12/01/14 .................................................................................. 5,500,000 5,980,040
Tulsa Housing Assistance Corp. Revenue, First Lien, Refunding, 6.80%, 7/01/11 .................... 2,740,000 2,919,114
Tulsa Industrial Authority, Hospital Revenue, St. John Medical Center Project, Series A, 6.25%, 2/15/14 2,000,000 2,163,840
Valley View Hospital Authority Revenue, Valley View Regional Medical Center, Refunding, 6.00%, 8/15/14 4,000,000 4,189,400
-----------
88,090,162
-----------
Oregon .3%
Medford Hospital Facilities Authority Revenue, Asante Health System, Series A, MBIA Insured, 5.00%, 3,655,000 3,644,218
8/15/24
Oregon State Department of Administrative Services COP, Series A, AMBAC Insured, 5.80%, 5/01/24 .. 5,000,000 5,451,800
Oregon State EDR, Georgia Pacific Corp. Project,
Refunding, Series 183, 5.70%, 12/01/25 ........................................................... 3,500,000 3,554,425
Series CLVII, 6.35%, 8/01/25 ..................................................................... 5,500,000 5,859,975
-----------
18,510,418
-----------
Pennsylvania 3.2%
Allegheny County Hospital Development Authority Revenue, University of Pittsburgh Health Center, Refunding,
Series A, MBIA Insured, 5.625%, 4/01/27 .......................................................... 6,550,000 6,873,308
Allegheny County IDA Revenue, Environmental Improvement, 6.70%, 12/01/20 ......................... 5,250,000 5,775,263
Beaver County IDA, PCR, Ohio Edison Co., Beaver Valley Project, Series A, 7.75%, 9/01/24 ......... 14,250,000 14,896,665
Cambria County HDA, Hospital Revenue, Conemaugh Valley Memorial Hospital, Refunding, Series B,
6.30%, 7/01/08 ................................................................................... 9,600,000 10,451,616
6.375%, 7/01/18 .................................................................................. 10,740,000 11,635,716
Delaware County IDA Revenue, Philadelphia Electric, Refunding, Series 1991, 7.375%, 4/01/21 ...... 6,500,000 7,027,540
Delaware River Port Authority Revenue, Pennsylvania and New Jersey, Series 1995, FGIC Insured, 5.50%, 5,000,000 5,294,550
1/01/26
Delaware Valley Regional Finance Authority, Local Government Revenue, Series B, AMBAC Insured, 5.60%, 5,000,000 5,450,150
7/01/17
Lehigh County IDA, PCR, Pennsylvania Power and Light Co. Project, Refunding, Series A, MBIA Insured, 6.15%,
8/01/29 .......................................................................................... 4,000,000 4,385,080
Montgomery County Higher Education and Health Authority, Hospital Revenue, Jeanes Health System Project,
Pre-Refunded, 8.75%, 7/01/20 ..................................................................... 5,500,000 6,059,955
Pennsylvania EDA,
Financing Authority Revenue, Macmillan, L.P. Project, 7.60%, 12/01/20 ............................ 5,000,000 6,105,500
Financing Resources Recovery Revenue, Colver Project, Series D, 7.125%, 12/01/15 ................. 13,500,000 14,998,500
Pennsylvania State Financial Authority Revenue, Municipal Capital Improvements Program, Refunding, 6.60%,
11/01/09 ......................................................................................... 33,280,000 36,654,592
Pennsylvania State HFA,
Rental Housing, Refunding, FGIC Insured, 6.40%, 7/01/12 .......................................... 10,590,000 11,322,193
SFM, Series 1991, 7.15%, 4/01/15 ................................................................. 3,635,000 3,839,723
Pennsylvania State Higher Educational Facilities Authorities Revenue, Temple University, First Series, MBIA Insured,
5.00%, 4/01/29 ................................................................................... 9,000,000 8,874,990
Pennsylvania State Pooled Finance Authority, Lease Revenue, Capital Improvement, Series B, MBIA Insured, 8.00%,
11/01/09 ......................................................................................... 4,445,000 4,650,003
Philadelphia Gas Works Revenue,
First Series A, FSA Insured, 5.00%, 7/01/26 ...................................................... 5,000,000 4,933,250
Series 13, Pre-Refunded, 7.70%, 6/15/21 .......................................................... 2,850,000 3,190,775
Series A, 6.375%, 7/01/26 ........................................................................ 3,950,000 4,366,014
Pennsylvania (cont.)
Philadelphia GO,
MBIA Insured, 5.00%, 5/15/25 ..................................................................... $ 5,000,000 $ 4,942,000
Refunding, Series A, 11.50%, 8/01/99 ............................................................. 2,400,000 2,545,872
Refunding, Series A, 11.50%, 8/01/00 ............................................................. 1,000,000 1,121,050
Philadelphia Hospital and Higher Education Facilities Authority Revenue,
Albert Einstein Medical Center, 7.50%, 4/01/99 ................................................... 3,955,000 4,009,856
Mortgage, North Philadelphia Health Systems, Series A, FHA Secured, 5.30%, 1/01/18 ............... 3,330,000 3,381,981
Mortgage, North Philadelphia Health Systems, Series A, FHA Secured, 5.35%, 1/01/23 ............... 5,780,000 5,882,075
Mortgage, North Philadelphia Health Systems, Series A, FHA Secured, 5.375%, 1/01/28 .............. 3,765,000 3,840,262
Philadelphia Hospitals and Higher Education Facilities Authority Revenue, Temple University Hospital, 5.875%,
11/15/23 ......................................................................................... 5,000,000 5,201,600
Philadelphia Municipal Authority, Gas Works Lease Revenue, 7.50%, 5/01/01 ........................ 1,000,000 1,036,530
Philadelphia School District, Series B, AMBAC Insured, 5.375%, 4/01/19 ........................... 7,000,000 7,192,570
Philadelphia Water and Sewer Revenue, ETM, Series 10, 7.35%, 9/01/04 ............................. 10,760,000 12,237,778
South Fork Municipal Authority, Hospital Revenue, Conemaugh Valley Memorial Hospital Project, Series A,
MBIA Insured, 5.75%, 7/01/26 ..................................................................... 5,000,000 5,327,500
Westmoreland County IDA Revenue, Citizens General Hospital Project, Refunding, Series A, 8.25%, 7/01/13 3,000,000 3,039,000
-----------
236,543,457
-----------
Rhode Island 1.3%
Providence Special Obligation Tax Increment, Series A, 7.65%, 6/01/16 ............................ 9,900,000 11,240,262
Rhode Island Clean Water Financial Agency Revenue, Drinking Water Providence, Series A, AMBAC Insured, 6.70%,
1/01/15 .......................................................................................... 2,200,000 2,505,140
Rhode Island Housing and Mortgage Finance Corp., Homeownership Opportunity,
Series 2, 7.75%, 4/01/22 ......................................................................... 1,645,000 1,712,100
Series 10-A, 6.50%, 10/01/22 ..................................................................... 20,200,000 21,432,604
Series 10-A, 6.50%, 4/01/27 ...................................................................... 13,085,000 13,864,343
Series 13, 6.70%, 10/01/15 ....................................................................... 7,400,000 7,984,748
Series 13, 6.85%, 4/01/27 ........................................................................ 2,600,000 2,807,116
Series 15-A, 6.85%, 10/01/24 ..................................................................... 15,000,000 16,064,250
Series 16-A, 6.375%, 10/01/26 .................................................................... 2,720,000 2,889,619
Series 17-A, 6.25%, 4/01/17 ...................................................................... 2,320,000 2,454,931
Rhode Island Port Authority and Economic Development Corp., Shepard Building Project, Refunding, Series B,
AMBAC Insured, Pre-Refunded, 6.75%, 6/01/25 ...................................................... 3,000,000 3,464,760
Rhode Island State Health and Educational Building Corp. Revenue,
Health Facilities, Tockwotton Home, Pre-Refunded, 7.25%, 4/15/17 ................................. 3,000,000 3,389,280
Roger William Realty, Elmhurst Nursing Home, FHA Insured, 7.50%, 8/01/29 ......................... 940,000 972,468
St. Antoine Residence, 6.70%, 11/15/12 ........................................................... 2,320,000 2,530,749
St. Antoine Residence, 6.75%, 11/15/18 ........................................................... 2,750,000 2,991,725
-----------
96,304,095
-----------
South Carolina 1.1%
Berkeley County School District COP, Berkeley School Facilities Group, Inc., AMBAC Insured, 6.30%, 1,800,000 2,027,700
2/01/16
Piedmont Municipal Power Agency, South Carolina Electric Revenue, Refunding,
6.60%, 1/01/21 ................................................................................... 25,505,000 25,574,119
Series A, 5.75%, 1/01/24 ......................................................................... 3,150,000 3,151,008
Series A, AMBAC Insured, 6.55%, 1/01/16 .......................................................... 18,115,000 18,162,642
South Carolina (cont.)
Piedmont Municipal Power Agency, South Carolina Electric Revenue, Refunding, (cont.)
Series A, AMBAC Insured, 5.75%, 1/01/24 .......................................................... $ 5,050,000 $ 5,056,212
Richland County PCR, Union Camp Corp. Project, Refunding, Series C, 6.55%, 11/01/20 .............. 3,000,000 3,273,810
South Carolina State Housing, Finance and Development Authority, Mortgage Revenue, Series A-2, AMBAC Insured,
5.80%, 7/01/27 ................................................................................... 6,405,000 6,765,794
South Carolina State Public Service Authority Revenue, Refunding, Series A, AMBAC Insured, 6.375%, 12,765,000 13,789,008
7/01/21
Spartanburg County Health Services District, Inc., Hospital Revenue, Series A, MBIA Insured, 5.50%, 3,000,000
4/15/27 3,158,250
-----------
80,958,543
-----------
South Dakota .4%
Lawrence County PCR, Black Hills Power and Light Co. Project, Refunding, 6.70%, 6/01/10 .......... 5,000,000 5,439,400
South Dakota State HDA, Homeownership Mortgage,
Series A, 6.30%, 5/01/17 ......................................................................... 3,680,000 3,903,192
Series A, 7.15%, 5/01/27 ......................................................................... 10,580,000 11,140,846
Series B, 7.10%, 5/01/17 ......................................................................... 2,885,000 3,042,204
Series D, 6.65%, 5/01/14 ......................................................................... 3,445,000 3,727,766
Series G, 7.125%, 5/01/14 ........................................................................ 3,405,000 3,726,636
-----------
30,980,044
-----------
Tennessee .9%
Chattanooga Health Educational and Housing Facility Board Revenue, Catholic Health Initiatives, Series A, 5.00%,
12/01/18 ......................................................................................... 2,150,000 2,112,504
Franklin IDB, MFHR, Landings Apartment Project, Refunding, Series A, FSA Insured, 6.00%, 10/01/26 2,000,000 2,119,380
Hamilton County IDB, MFHR, Patten Towers Apartments, Series A,
6.125%, 8/01/05 .................................................................................. 2,515,000 2,644,170
6.30%, 8/01/07 ................................................................................... 1,000,000 1,061,240
Jackson Hospital Revenue, Jackson Madison County General Hospital, 5.00%, 4/01/28 ................ 2,000,000 1,963,620
Knox County Health, Educational and Housing Facilities Board, MFHR, East Towne Village Project, GNMA Secured,
8.20%, 7/01/28 ................................................................................... 4,720,000 4,876,562
Memphis-Shelby County Airport Authority, Special Facilities and Project Revenue, Federal Express Corp.,
7.875%, 9/01/09 .................................................................................. 14,690,000 16,362,016
6.75%, 9/01/12 ................................................................................... 6,520,000 7,125,186
Metropolitan Government Nashville and Davidson County, Health and Educational Facilities Board Revenue,
Multi Modal Health Facility, Asset Guaranty Insurance Co. Insured, 5.50%, 5/01/23 ................ 995,000 1,037,307
Metropolitan Nashville Airport Authority Revenue, Series C, FGIC Insured, 6.60%, 7/01/15 ......... 1,940,000 2,104,396
Mount Pleasant IDR, PCR, Stauffer Chemical Co. Project, 8.00%, 12/01/12 .......................... 1,990,000 2,134,693
Nashville and Davidson County Revenue, IDB, Osco Treatment, Inc., Refunding and Improvement, 6.00%, 5,000,000 5,250,100
5/01/03
Shelby County Health Educational and Housing Facility Board Hospital Revenue, MBIA Insured, 5.00%, 5,000,000 4,950,750
4/01/18
Tennessee HDA, Homeownership Program,
Series 1992, 6.80%, 7/01/17 ...................................................................... 2,360,000 2,506,981
Series P, 7.70%, 7/01/16 ......................................................................... 4,580,000 4,740,117
Tennessee State Local Development Authority Revenue, Community Provider Pooled Loan Program, 6.45%,
10/01/14 ......................................................................................... 2,275,000 2,504,093
-----------
63,493,115
-----------
Texas 6.8%
Austin Combined Utility System Revenue, Series A, Pre-Refunded, 8.00%, 11/15/16 .................. 18,100,000 20,009,550
Austin Utility System Revenue, Refunding, FGIC Insured, 6.25%, 5/15/16 ........................... 11,310,000 12,645,485
Texas (cont.)
Bexar County Health Facilities Development Corp. Revenue,
Incarnate Word Facility, FSA Insured, 6.00%, 11/15/15 ............................................ $ 4,500,000 $ 4,980,240
Incarnate Word Health Services, Refunding, FSA Insured, 6.10%, 11/15/23 .......................... 8,300,000 9,235,327
Bexar County HFC, MFHR, Sunpark Apartments Project, 6.875%, 12/01/12 ............................. 1,725,000 1,797,226
Bexar Metropolitan Water District, Water Works Systems Revenue, Refunding, MBIA Insured, 5.875%, 5/01/22 5,000,000 5,411,100
Brazos River Authority, PCR,
Collateralized Utilities Electric Co. Project, Series A, 8.25%, 1/01/19 .......................... 15,000,000 15,390,600
Collateralized Utilities Electric Co., Refunding, Series C, 5.55%, 6/01/30 ....................... 20,000,000 19,677,000
Utilities Electric Co. Project, Series A, AMBAC Insured, 5.55%, 5/01/33 .......................... 23,965,000 24,830,616
Dallas-Fort Worth International Airport Facilities, Improvement Corp. Revenue, American Airlines, Inc.,
8.00%, 11/01/24 .................................................................................. 99,000,000 107,144,730
Refunding, 6.00%, 11/01/14 ....................................................................... 29,400,000 31,311,000
El Paso HFC, SFMR, Series A, 8.75%, 10/01/11 ..................................................... 3,730,000 4,045,745
Fort Worth Higher Education Financial Corp., Higher Education Revenue, Texas Christian University Project, 5.00%,
3/15/27 .......................................................................................... 4,000,000 3,999,760
Grand Prairie Health Facilities Development Corp., Hospital Revenue, Dallas/Ft. Worth Medical Center Project,
Refunding, AMBAC Insured, 6.875%, 11/01/10 ....................................................... 2,700,000 2,844,558
Gulf Coast Waste Disposal Authority, Environmental Improvement Revenue, UXS Corp. Projects, Refunding, 5.50%,
9/01/17 .......................................................................................... 3,250,000 3,315,650
Harris County IDR, Marine Terminal Revenue, Refunding, 6.95%, 2/01/22 ............................ 20,250,000 22,009,118
Houston Water and Sewer System Revenue,
Junior Lien, Refunding, Series A, MBIA Insured, Pre-Refunded, 6.20%, 12/01/20 .................... 22,500,000 25,523,325
Refunding, Series B, 6.375%, 12/01/14 ............................................................ 21,000,000 22,588,650
Joshua ISD, Refunding, Series B, 6.125%, 2/15/26 ................................................. 20,000 20,105
Lower Neches Valley Authority IDC Revenue, Mobil Oil Refunding Corp., Refunding, 5.55%, 3/01/33 .. 2,500,000 2,552,500
Lubbock HFC, SFMR, MBS Program, Refunding, Series A, GNMA Secured, 6.125%, 12/01/17 .............. 1,000,000 1,061,510
Matagorda County Navigation District No. 1, PCR,
Central Power and Light Co. Project, Refunding, Series E, MBIA Insured, 6.10%, 7/01/28 ........... 25,300,000 26,549,567
Collateralized, Houston Lighting and Power Co., Refunding, 6.00%, 7/01/28 ........................ 19,200,000 20,366,976
Series A, AMBAC Insured, 6.70%, 3/01/27 .......................................................... 5,500,000 5,989,225
Mesquite HFC, SFMR, Series 1983, 10.75%, 9/01/14 ................................................. 810,000 828,638
North Central Health Facilities Development Corp. Revenue, Texas Health Resources System, Series B, 5.125%,
2/15/22 .......................................................................................... 5,985,000 6,033,000
Nueces River Authority Environmental Improvement Revenue, Asarco Inc. Project, Refunding, 5.60%, 1/01/27 4,000,000 3,982,800
Nueces River Authority Texas, Asarco Inc., Project, Refunding, Series A, 5.60%, 4/01/18 .......... 4,500,000 4,467,150
Port Corpus Christi Authority, Nueces County General Revenue, Union Pacific, Refunding, 5.65%, 12/01/22 18,000,000 18,487,260
Port Corpus Christi IDC Revenue, Valero, Refunding,
Series B, 5.40%, 4/01/18 ......................................................................... 4,000,000 4,023,480
Series C, 5.40%, 4/01/18 ......................................................................... 6,000,000 6,035,220
Red River Authority, PCR, West Texas Utilities Co., Public Service Co., Oklahoma Central Power and Light Co.,
Refunding, MBIA Insured, 6.00%, 6/01/20 .......................................................... 5,000,000 5,497,200
Sabine River Authority, PCR,
Southwestern Electric Power Co., Refunding, MBIA Insured, 6.10%, 4/01/18 ......................... 4,000,000 4,416,680
Texas Utilities Electric Co. Project, Collateralized, Refunding, FGIC Insured, 6.55%, 10/01/22 ... 7,700,000 8,429,729
San Antonio Electric and Gas Revenue, Refunding, 5.50%, 2/01/20 .................................. 10,000,000 10,455,300
Texas (cont.)
San Antonio Water Revenue, Senior Lien, MBIA Insured,
6.50%, 5/15/10 ................................................................................... $ 2,795,000 $ 3,058,904
Pre-Refunded, 6.50%, 5/15/10 ..................................................................... 1,440,000 1,597,579
Tarrant County Health Facilities Development Corp.,
Health Services Revenue, Texas Health Resources System, Series A, MBIA Insured, 5.00%, 2/15/26 ... 10,000,000 9,795,100
Hospital Revenue, Ft. Worth Osteopathic Hospital, MBIA Insured, 5.25%, 5/15/28 ................... 5,010,000 5,090,962
Texas Housing Agency, Residential Development Mortgage Revenue, Series D, 8.35%,
1/01/08 .......................................................................................... 1,215,000 1,259,821
7/01/08 .......................................................................................... 2,720,000 2,820,341
Texas Water Development Board Revenue, State Revolving Fund, 6.00%, 7/15/13 ...................... 2,500,000 2,699,800
Texas Water Resources Finance Authority Revenue, 7.625%, 8/15/08 ................................. 2,210,000 2,271,968
Travis County HFC, SFMR, Refunding, Series A, 6.95%, 10/01/27 .................................... 3,735,000 4,054,006
Tyler Health Facilities Development Corp., Hospital Revenue, East Texas Medical Center Project, Refunding, Series A,
MBIA Insured, 5.50%, 11/01/17 .................................................................... 1,735,000 1,833,236
-----------
500,437,73
-----------
US Territories 1.6%
District of Columbia GO, Series E, MBIA-IBC Insured, 6.00%, 6/01/13 .............................. 155,000 170,767
District of Columbia GO, Series E, MBIA-IBC Insured, 6.00%, 6/01/13 .............................. 3,845,000 4,137,028
District of Columbia HFA,
MFHR, Refunding, Series A, FHA Insured, 7.10%, 9/01/12 ........................................... 1,830,000 1,952,006
MFHR, Refunding, Series A, FHA Insured, 7.15%, 3/01/24 ........................................... 6,575,000 6,984,228
SFMR, Refunding, Series B, 5.85%, 12/01/18 ....................................................... 2,830,000 2,931,456
District of Columbia Hospital Revenue, Washington Hospital Center Corp., Series A, Pre-Refunded, 9.00%, 3,955,000 4,454,319
1/01/08
District of Columbia Redevelopment Land Agency, Sports Arena, Special Tax Revenue, 5.625%, 11/01/10 990,000 1,024,502
District of Columbia Revenue,
Association of American Medical Colleges, Pre-Refunded, 7.50%, 2/15/20 ........................... 5,685,000 6,071,921
Catholic University of America, 6.45%, 10/01/23 .................................................. 5,265,000 5,826,512
Puerto Rico Commonwealth Highway and Transportation Authority Revenue, Series Y,
5.00%, 7/01/36 ................................................................................... 59,000,000 59,202,370
5.50%, 7/01/36 ................................................................................... 7,000,000 7,543,830
Puerto Rico Commonwealth Urban Renewal and Housing Corp., Commonwealth Appropriation, Refunding, 7.875%,
10/01/04 ......................................................................................... 3,200,000 3,369,312
Virgin Islands HFA Mortgage Revenue, Series B, GNMA Secured, Pre-Refunded, 8.10%, 12/01/18 ....... 690,000 706,374
Virgin Islands Public Finance Authority Revenue, Senior Lien, Fund Loan Notes, Refunding, Series A, 5.50%,
10/01/22 ......................................................................................... 6,485,000 6,552,444
Virgin Islands Public Financing Authority Revenue, Subordinated Lien, Fund Loan Notes, Refunding, Series D, 5.50%,
10/01/01 ......................................................................................... 1,755,000 1,806,123
10/01/02 ......................................................................................... 1,700,000 1,757,766
10/01/03 ......................................................................................... 1,850,000 1,923,14
-----------
116,414,107
-----------
Utah .7%
Carbon County, Solid Waste Disposal Revenue, Laidlaw, Inc. Project, Refunding, Series A, 7.50%, 2/01/10 5,050,000 5,743,769
Intermountain Power Agency, Power Supply Revenue, Refunding, Series A, 6.15%, 7/01/14 ............ 25,000,000 27,470,500
Salt Lake City College Revenue, Westminster College Project,
5.70%, 10/01/17 .................................................................................. 1,000,000 1,026,590
5.75%, 10/01/27 .................................................................................. 1,000,000 1,026,530
Utah (cont.)
Utah State HFA,
Refunding, Series A, 6.50%, 5/01/19 .............................................................. $ 2,945,000 $ 3,097,168
SFM, Refunding, 6.80%, 1/01/12 ................................................................... 1,300,000 1,384,084
SFM, Series A, 8.50%, 7/01/19 .................................................................... 210,000 214,979
SFM, Series B, 6.55%, 7/01/19 .................................................................... 3,105,000 3,330,640
SFM, Series B, 6.55%, 7/01/26 .................................................................... 3,345,000 3,571,122
SFM, Series C-1, 6.80%, 7/01/12 .................................................................. 205,000 218,258
SFM, Series C-1, 8.375%, 7/01/19 ................................................................. 1,185,000 1,201,008
SFM, Series D, 8.60%, 7/01/19 .................................................................... 100,000 101,121
SFM, Series E-1, 6.65%, 7/01/20 .................................................................. 2,150,000 2,295,921
SFM, Series G-1, 8.10%, 7/01/16 .................................................................. 585,000 600,952
-----------
51,282,642
-----------
Vermont .1%
Vermont HFA, SF, Series 5, 7.00%, 11/01/27 ....................................................... 9,400,000 10,077,740
-----------
Virginia .6%
Danville IDA, Hospital Revenue, Danville Regional Medical Center, Refunding, FGIC Insured, Pre-Refunded, 6.50%,
10/01/24 ......................................................................................... 5,840,000 6,680,610
Danville IDA Revenue, Regional Medical Center, FGIC Insured, 6.50%, 10/01/19 ..................... 5,885,000 6,732,086
Henrico County IDA, Public Facilities Lease Revenue, Regional Jail Project, 6.00%, 8/01/15 ....... 7,250,000 7,875,747
Lynchburg IDA, Healthcare Facilities Revenue, Central Health, Refunding, 5.20%, 1/01/28 .......... 2,000,000 1,996,880
Medical College Hospital Authority Revenue, MBIA Insured, 5.125%, 7/01/23 ........................ 2,000,000 2,014,720
Medical College Virginia Hospital Authority Revenue, General Revenue Bonds, MBIA Insured, 5.125%, 3,000,000 3,032,610
7/01/18
Richmond Public Utility Revenue, Refunding, Series A, 5.125%, 1/15/28 ............................ 5,510,000 5,544,602
Virginia State HDA, Commonwealth Mortgage,
Series C, Sub-Series C-6, 6.25%, 1/01/15 ......................................................... 5,120,000 5,378,202
Series H, Sub-Series H-2, 6.55%, 1/01/17 ......................................................... 4,755,000 5,121,895
-----------
44,377,352
-----------
Washington 2.6%
Chelan County PUD No. 1, Cheland Hydro Consolidated System Revenue, Series A, 5.65%, 7/01/32 ..... 5,000,000 5,173,650
Pierce County EDC, Solid Waste-Steilacoom Revenue, Refunding, 6.60%, 8/01/22 ..................... 32,480,000 34,632,450
Pierce County EDR, Occidental Petrol, 5.80%, 9/01/29 ............................................. 4,000,000 4,055,800
Port Moses Lake Public Corp., Washington PCR, Union Carbide Corp.,
7.50%, 8/01/04 ................................................................................... 2,100,000 2,103,422
7.875%, 8/01/06 .................................................................................. 1,000,000 1,026,790
SeaTac GO, Series 1994, 6.50%, 12/01/13 .......................................................... 2,760,000 3,090,675
Seattle Municipality, Metropolitan Seattle Sewer Revenue,
Refunding, Series V, 6.20%, 1/01/32 .............................................................. 9,680,000 10,145,511
Series W, MBIA Insured, 6.25%, 1/01/21 ........................................................... 2,500,000 2,771,024
Seattle Special Obligation, Chinatown International District, 5.90%, 8/01/26 ..................... 4,810,000 5,174,116
Snohomish County USD No. 6, 6.50%, 12/01/11 ...................................................... 7,000,000 8,341,410
University of Washington Alumni Association, Lease Revenue, Medical Center Roosevelt II, 6.30%, 8/15/14 4,000,000 4,469,200
Washington State Health Care Facilities Authority Revenue, Swedish Health Services, AMBAC Insured, 5.50%,
11/15/28 ......................................................................................... 5,000,000 5,178,100
Washington State Public Power Supply System Revenue,
Nuclear Project No. 1, Refunding, Series A, 6.05%, 7/01/12 ....................................... 35,355,000 37,928,843
Washington (cont.)
Washington State Public Power Supply System Revenue, (cont.)
Nuclear Project No. 1, Refunding, Series A, MBIA Insured, 6.25%, 7/01/17 ......................... $ 19,965,000 $ 21,539,640
Nuclear Project No. 2, Refunding, Series A, 6.00%, 7/01/09 ....................................... 18,330,000 19,997,296
Nuclear Project No. 2, Refunding, Series A, 6.30%, 7/01/12 ....................................... 7,700,000 8,973,348
Nuclear Project No. 2, Series A, 6.25%, 7/01/12 .................................................. 3,200,000 3,454,655
Nuclear Project No. 3, Refunding, Series B, 5.50%, 7/01/18 ....................................... 10,050,000 10,089,395
-----------
188,145,325
-----------
West Virginia .7%
Braxton County Solid Waste Disposal Revenue, Weyerhaeuser Co. Project,
6.50%, 4/01/25 ................................................................................... 3,500,000 3,829,594
Refunding, 5.40%, 5/01/25 ........................................................................ 10,000,000 10,091,200
Putnam County PCR, FMC Corp. Project, Refunding, 5.625%, 10/01/13 ................................ 1,700,000 1,769,546
Taylor County PCR, Union Carbide Corp., 7.625%, 8/01/05 .......................................... 2,400,000 2,824,103
West Virginia State Hospital Financing Authority Revenue, Logan General Hospital Project, Refunding and
Improvement, 7.25%, 7/01/20 ...................................................................... 7,000,000 6,824,720
West Virginia State Housing Development Fund, Housing Finance, Series D,
7.00%, 5/01/17 ................................................................................... 6,000,000 6,399,420
7.05%, 11/01/24 .................................................................................. 9,000,000 9,604,350
West Virginia State, Series A, FGIC Insured, 5.20%, 11/01/26 ..................................... 10,000,000 10,292,000
-----------
51,634,933
-----------
Wisconsin 1.3%
Janesville IDR, Simmons Manufacturing Co., 7.00%, 10/15/17 ....................................... 2,200,000 2,319,063
Madison Industrial Gas and Electric Co. Project, Series A, 6.75%, 4/01/27 ........................ 4,220,000 4,575,240
Wisconsin Housing and EDA, Homeownership Revenue,
Refunding, Series A, 6.10%, 11/01/10 ............................................................. 9,190,000 9,904,431
Series 1, 6.75%, 9/01/15 ......................................................................... 10,230,000 10,917,148
Series 1, 6.75%, 9/01/17 ......................................................................... 3,000,000 3,198,420
Series A, 6.90%, 3/01/16 ......................................................................... 1,985,000 2,170,914
Series A, 6.45%, 3/01/17 ......................................................................... 5,500,000 5,870,204
Series A, 7.10%, 3/01/23 ......................................................................... 8,635,000 9,192,906
Series B, 7.05%, 11/01/22 ........................................................................ 3,000,000 3,220,500
Wisconsin State Health and Educational Facilities Authority Revenue,
Childrens Hospital of Wisconsin Inc., AMBAC Insured, 5.375%, 2/15/28 ............................. 21,050,000 21,506,995
Franciscan Sisters Christian, Series A, 5.50%, 2/15/18 ........................................... 1,500,000 1,517,474
Franciscan Sisters Christian, Series A, 5.50%, 2/15/28 ........................................... 3,000,000 3,022,320
Mercy Health Systems Corp., AMBAC Insured, 6.125%, 8/15/13 ....................................... 6,500,000 7,231,250
Mercy Health Systems Corp., AMBAC Insured, 6.125%, 8/15/17 ....................................... 7,500,000 8,278,574
-----------
92,925,439
-----------
Wyoming .3%
Wyoming CDA,
Housing Revenue, Refunding, Series 6, 6.10%, 12/01/28 ............................................ 11,540,000 12,252,941
MF Mortgage, Series A, 6.90%, 6/01/12 ............................................................ 1,395,000 1,467,944
MF Mortgage, Series A, 6.95%, 6/01/24 ............................................................ 3,530,000 3,722,561
SFM, Series A, 7.25%, 6/01/21 .................................................................... 2,500,000 2,683,650
Wyoming (cont.)
Wyoming CDA, (cont.)
SFM, Series G, 7.375%, 6/01/17 ................................................................... $ 645,000 $ 680,068
-----------
20,807,164
-----------
Total Bonds (Cost $6,458,220,889) ................................................................ 6,975,367,419
-----------
Zero Coupon Bonds 2.2%
Calcasieu Parish, Louisiana, Memorial Hospital Service District Revenue, Lake Charles Parish Memorial Hospital
Project, Series A,12/01/22 ....................................................................... 11,040,000 7,614,508
Chicago RMR, Refunding, Series B, MBIA Insured,10/01/09 .......................................... 8,785,000 4,134,483
Coldwater, Michigan, Community Schools, MBIA Insured, Pre-Refunded, 5/01/18 ...................... 5,935,000 2,143,068
Colorado Springs Airport Revenue, Series C,
1/01/03 .......................................................................................... 1,660,000 1,367,840
1/01/05 .......................................................................................... 1,610,000 1,207,241
1/01/07 .......................................................................................... 1,675,000 1,115,081
1/01/08 .......................................................................................... 800,000 501,720
1/01/11 .......................................................................................... 1,450,000 753,231
Cook County, Illinois, Community Consolidated School District No. 54, Schaumburg Township, Series B, FGIC Insured,
Pre-Refunded,
1/01/07 .......................................................................................... 3,505,000 2,329,422
1/01/08 .......................................................................................... 4,800,000 2,985,167
1/01/09 .......................................................................................... 4,380,000 2,546,575
1/01/10 .......................................................................................... 5,760,000 3,138,335
Florida State Mid-Bay Bridge Authority Revenue, Senior Lien, Series A, AMBAC Insured,
10/01/23 ......................................................................................... 5,000,000 1,364,550
10/01/24 ......................................................................................... 3,000,000 769,260
Harrison, Michigan, Community Schools, AMBAC Insured, 5/01/20 .................................... 6,000,000 1,725,840
Jefferson County, Kentucky, Capital Projects Corp., Lease Revenue, Refunding, Series A,
8/15/07........................................................................................... 1,640,000 1,124,908
8/15/08........................................................................................... 4,505,000 2,898,516
8/15/09........................................................................................... 4,580,000 2,781,480
8/15/10........................................................................................... 4,620,000 2,648,275
8/15/13........................................................................................... 6,825,000 3,346,638
8/15/14........................................................................................... 6,860,000 3,171,103
8/15/16........................................................................................... 7,005,000 2,885,920
8/15/17........................................................................................... 7,115,000 2,763,252
Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue,
Capital Appreciation, Series A, 6/15/09........................................................... 9,510,000 5,929,961
Capital Appreciation, Series A, Pre-Refunded, 6/15/09............................................. 1,490,000 943,676
McCormick Place Expansion Project, Series A, FGIC Insured, 6/15/08 ............................... 8,500,000 5,657,260
McCormick Place Expansion Project, Series A, FGIC Insured, 6/15/10 ............................... 8,000,000 4,717,360
McCormick Place Expansion Project, Series A, FGIC Insured, 6/15/11 ............................... 9,690,000 5,392,970
McCormick Place Expansion Project, Series A, FGIC Insured, 6/15/12 ............................... 250,000 220,832
McCormick Place Expansion Project, Series A, FGIC Insured, Pre-Refunded, 6/15/12 ................. 11,550,000 10,477,813
Miami, Dade County Special Obligation, Subordinated Lien, Series B, MBIA Insured,10/01/34 ........ 5,500,000 779,844
Owensboro, Kentucky, Electric Light and Power Revenue, Series B, AMBAC Insured,1/01/08 ........... 5,250,000 3,575,040
San Joaquin Hills, California, Transportation Corridor Agency, Toll Road Revenue,
Refunding, Series A, 1/15/21 ..................................................................... $ 50,000,000 $ 34,110,500
Senior Lien, Pre-Refunded, 1/01/23 ............................................................... 7,000,000 2,108,050
Shreveport, Louisiana, Water and Sewer Revenue, Series B, FGIC Insured,
12/01/07 ......................................................................................... 490,000 303,123
12/01/08 ......................................................................................... 2,530,000 1,446,425
12/01/09 ......................................................................................... 4,080,000 2,173,782
12/01/10 ......................................................................................... 5,630,000 2,793,267
Spring, Texas, ISD, Refunding, FGIC Insured, Pre-Refunded, 8/15/08 ............................... 7,000,000 3,602,550
University of Illinois Revenues, AMBAC Insured, 4/01/10 .......................................... 14,250,000 8,481,742
Washington State Public Power Supply System, Nuclear Project No. 3 Revenue, Refunding, Series B,
7/01/12 .......................................................................................... 6,400,000 3,317,120
7/01/13 .......................................................................................... 11,000,000 5,356,340
7/01/14 .......................................................................................... 15,000,000 6,848,700
-----------
Total Zero Coupon Bonds (Cost $103,721,369) ...................................................... 163,552,768
-----------
Total Long Term Investments (Cost $6,561,942,258) ................................................ 7,138,920,187
-----------
aShort-term Investments 1.3%
Allegheny County Hospital Development Authority Revenue, Aces Presbyterian University Hospital, Series B-1,
Weekly VRDN and Put, 3.15%, 3/01/18 .............................................................. 700,000 700,000
Arkansas State Development Finance Authority, Higher Education Capital Asset, Series A 1995, FGIC Insured,
Weekly VRDN and Put, 3.00%, 12/01/15 ............................................................. 300,000 300,000
Calcasieu Parish Inc., Louisiana Industrial Development Board,
Industrial Revenue, Refunding, Olin Corp. Project,
Series B, Daily VRDN and Put, 3.40%, 2/01/16 ..................................................... 1,000,000 1,000,000
Colorado Health Facilities Authority Revenue, Catholic Health Series B,
Weekly VRDN and Put, 3.00%, 12/01/25 ............................................................. 1,300,000 1,300,000
Denver City and County MFHR, Ogden Residence Project, Daily VRDN and Put, 3.45%, 12/01/09 ........ 2,080,000 2,080,000
Duluth Minnesota Tax Increment Revenue, Lake Superior Paper, Registered, Weekly VRDN and Put, 3.00%, 100,000 100,000
9/01/10
Georgia Development Authority, PCR, Georgia Power Company Plant,
Appling County, Hatch Project, Daily VRDN and Put, 3.25%, 9/01/29 ................................ 8,300,000 8,300,000
Heard County, Wansley Project, Daily VRDN and Put, 3.30%, 9/01/29 ................................ 9,000,000 9,000,000
Putnam County, Branch Project, Daily VRDN and Put, 3.25%, 3/01/24 ................................ 3,200,000 3,200,000
Kansas City IDA, Hospital Revenue, Resh Health Services System,
MBIA Insured, Daily VRDN and Put, 2.80%,
10/15/14 ......................................................................................... 2,500,000 2,500,000
Long Island New York Power Authority Electric System Revenue,
Subordinated, Series B, Daily VRDN and Put,
2.75%, 5/01/33 ................................................................................... 5,300,000 5,300,000
Louisiana, East Baton Rouge Parish Pollution Control Revenue,
Refunding, Exxon Project, Daily VRDN and Put,
3.30%, 11/01/19 .................................................................................. 4,500,000 4,500,000
Maryland Community Development Administration MF, Development Revenue,
Avalon Lea Apartments Project,
Refunding, FNMA Secured, Weekly VRDN and Put, 3.20%, 6/15/26 ..................................... 400,000 400,000
Maryland State Industrial Development Financing Authority,
Economic Development Revenue, Chesapeake
Biological Inc., Weekly VRDN and Put, 3.25%, 8/01/18 ............................................. 1,945,000 1,945,000
Massachusetts State Health and Educational Facilities Authority Revenue,
Capital Assets Program, Series D, MBIA
Insured, Weekly VRDN and Put, 3.10%, 1/01/35 ..................................................... 3,300,000 3,300,000
New York City Health and Hospital Corporation Revenue Health Systems,
Series A, Weekly VRDN and Put, 3.00%,
2/15/26 .......................................................................................... 9,400,000 9,400,000
New York City Municipal Water Financing Authority,
Water and Sewer System Revenue, Bond Purchase Agreement,
Series G, FGIC Insured, Daily VRDN and Put, 2.40%, 6/15/24 ....................................... 5,900,000 5,900,000
New York and New Jersey Port Authority, Special Obligation Revenue,
Versatile Structure, Series 2, Daily VRDN and
Put, 3.25%, 5/01/19 .............................................................................. $ 2,800,000 $ 2,800,000
North Carolina Medical Care Commission Revenue, Carol Woods Project, Daily VRDN and Put, 2.95%, 4/01/21 2,000,000 2,000,000
Perry County Mississippi PCR, Leaf River Forest Project, Refunding, Daily VRDN and Put, 3.20%, 3/01/02 3,300,000 3,300,000
Roanoke IDA, Hospital Revenue, Carilion Health System, Series B, Daily VRDN and Put, 2.80%, 7/01/27 500,000 500,000
Uinta County PCR, Refunding, Chevron USA Inc. Project,
Letter of Credit from Chevron Corp., Daily VRDN and Put,
2.40%, 8/15/20 ................................................................................... 21,350,000 21,350,000
Washington State Health Care Facilities Authority Revenue,
Sisters Providence, Series E, Daily VRDN and Put, 2.75%,
10/01/05 ......................................................................................... 6,000,000 6,000,000
Waynesboro Virginia IDA Revenue, Residential Care Facilities,
Sunnyside Presbyterian Home, Refunding, Daily
VRDN and Put, 3.25%, 12/15/28 .................................................................... 2,500,000 2,500,000
-----------
Total Short-term Investments (Cost $97,675,000)................................................... 97,675,000
-----------
Total Investments (Cost $6,659,617,258) 99.0% .................................................... 7,236,595,187
Other Assets, less Liabilities 1.0% .............................................................. 73,545,755
-----------
Net Assets 100.0% ................................................................................ $7,310,140,942
===========
</TABLE>
See glossary of terms on page 47.
aVariable rate demand notes (VRDNs) are tax-exempt obligations which contain a
floating or variable interest rate adjustment formula and an unconditional right
of demand to receive payment of the principle balance plus accrued interest at
specified dates.
bSufficient collateral has been segregated for securities traded on a
when-issued or delayed delivery basis.
FRANKLIN FEDERAL TAX-FREE INCOME FUND
Statement of Investments, October 31, 1998 (unaudited) (cont.)
Glossary of Terms
AMBAC - American Municipal Bond Assurance Corp.
CDA - Community Development Authority/Agency
COP - Certificate of Participation
CRDA - Community Redevelopment Authority/Agency
EDA - Economic Development Authority
EDC - Economic Development Corp.
EDR - Economic Development Revenue
ETM - Escrow to Maturity
FGIC - Financial Guaranty Insurance Co.
FHA - Federal Housing Authority/Agency
FI/GML- Federally Insured or Guaranteed Mortgage Loans
FNMA - Federal National Mortgage Association
FSA - Financial Security Assistance (Some of the securities shown as FSA
Insured were originally insured by Capital Guaranty Insurance Co.
(CGIC) which was acquired by FSA in 1995 and no longer does business
under this name.)
GNMA - Government National Mortgage Association
GO - General Obligation
HDA - Housing Development Authority
HFA - Housing Finance Agency
HFC - Housing Finance Corp.
IDA - Industrial Development Authority/Agency
IDB - Industrial Development Board
IDC - Industrial Development Corp.
IDBR - Industrial Development Board Revenue
IDR - Industrial Development Revenue
IPC - Industrial Pollution Control
ISD - Independent School District
L.P. - Limited Partnership
MBIA - Municipal Bond Investors Assurance Corp.
MBIA-IBC - Municipal Bond Investors Assurance Corp.-Insured Bond Certificates
MBS - Mortgage-Backed Securities
MF - Multi-Family
MFHR - Multi-Family Housing Revenue
MFMR - Multi-Family Mortgage Revenue
MFR - Multi-Family Revenue
MTA - Metropolitan Transit Authority
PCR - Pollution Control Revenue
PUD - Public Utility District
RDA - Redevelopment Authority/Agency
RMR - Residential Mortgage Revenue
SF - Single Family
SFM - Single Family Mortgage
SFMR - Single Family Mortgage Revenue
SFR - Single Family Revenue
USD - Unified School District
FRANKLIN FEDERAL TAX-FREE INCOME FUND
Financial Statements
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
October 31, 1998 (unaudited)
<S> <C>
Assets:
Investments in securities, at value (cost $6,659,617,258) ...................................... $7,236,595,187
Cash ........................................................................................... 999,580
Receivables:
Investment securities sold .................................................................... 45,797,924
Capital shares sold ........................................................................... 11,440,003
Interest ...................................................................................... 131,259,562
----------------
Total assets .............................................................................. 7,426,092,256
----------------
Liabilities:
Payables:
Investment securities purchased ............................................................... 51,839,305
Capital shares redeemed ....................................................................... 53,547,779
Affiliates .................................................................................... 4,517,604
Shareholders .................................................................................. 5,910,123
Other liabilities .............................................................................. 136,503
----------------
Total liabilities ......................................................................... 115,951,314
----------------
Net assets, at value ..................................................................... $7,310,140,942
================
Net assets consist of:
Undistributed net investment income ............................................................ $ 6,567,734
Net unrealized appreciation .................................................................... 576,977,929
Accumulated net realized loss .................................................................. (7,136,726)
Capital shares ................................................................................. 6,733,732,005
----------------
Net assets, at value ..................................................................... $7,310,140,942
================
Class I:
Net asset value per share ($7,133,824,075 / 574,189,590 shares outstanding)* ................... $12.42
================
Maximum offering price per share ($12.42 / 95.75%) ............................................. $12.97
================
Class II:
Net asset value per share ($176,316,867 / 14,196,540 shares outstanding)* ...................... $12.42
================
Maximum offering price per share ($12.42 / 99%) ................................................ $12.55
================
</TABLE>
*Redemption price is equal to net asset value less any applicable contingent
deferred sales charge.
See notes to financial statements.
FRANKLIN FEDERAL TAX-FREE INCOME FUND
Financial Statements (continued)
<TABLE>
<CAPTION>
Statement of Operations
for the six months ended October 31, 1998 (unaudited)
<S> <C> <C>
Investment income:
Interest ............................................................. $219,845,745
--------------
Expenses:
Management fees (Note 3) ............................................. $16,537,312
Distribution fees (Note 3)
Class I ............................................................. 2,693,558
Class II ............................................................ 506,604
Transfer agent fees (Note 3) ......................................... 1,288,527
Custodian fees ....................................................... 35,891
Reports to shareholders .............................................. 394,672
Registration and filing fees ......................................... 100,397
Professional fees .................................................... 89,851
Directors' fees and expenses ......................................... 72,488
Other ................................................................ 136,097
--------------
Total expenses .................................................. 21,855,397
--------------
Net investment income .......................................... 197,990,348
--------------
Realized and unrealized gains:
Net realized gain from investments ................................... 18,742,105
Net unrealized appreciation on investments ........................... 84,347,573
--------------
Net realized and unrealized gain ...................................... 103,089,678
--------------
Net increase in net assets resulting from operations .................. $301,080,026
==============
</TABLE>
See notes to financial statements.
FRANKLIN FEDERAL TAX-FREE INCOME FUND
Financial Statements (continued)
<TABLE>
<CAPTION>
Statements of Changes in Net Assets for the six months ended October 31, 1998
(unaudited) and the year ended April 30, 1998
Six Months Ended Year Ended
October 31, 1998 April 30, 1998
---------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ...................................... $ 197,990,348 $ 404,855,331
Net realized gain from investments ......................... 18,742,105 42,732,886
Net unrealized appreciation on investments ................. 84,347,573 156,385,279
---------------------------------------
Net increase in net assets resulting from operations ...... 301,080,026 603,973,496
Distributions to shareholders from:
Net investment income:
Class I ................................................... (193,297,707) (396,082,048)
Class II .................................................. (3,695,119) (5,046,130)
---------------------------------------
Total distributions to shareholders ......................... (196,992,826) (401,128,178)
Capital share transactions: (Note 2)
Class I .................................................... 8,936,649 (83,120,865)
Class II ................................................... 38,961,503 60,999,749
---------------------------------------
Total capital share transactions ............................ 47,898,152 (22,121,116)
Net increase in net assets ................................ 151,985,352 180,724,202
Net assets:
Beginning of period ......................................... 7,158,155,590 6,977,431,388
---------------------------------------
End of period ............................................... $7,310,140,942 $7,158,155,590
=======================================
Undistributed net investment income included in net assets:
End of period ............................................... $ 6,567,734 $ 5,570,212
=======================================
</TABLE>
See notes to financial statements.
FRANKLIN FEDERAL TAX-FREE INCOME FUND
Notes to Financial Statements (unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Franklin Federal Tax-Free Income Fund (the Fund) is registered under the
Investment Company Act of 1940 as a diversified, open-end investment company.
The Fund seeks to provide tax-free income. The following summarizes the Fund's
significant accounting policies.
a. Security Valuation
Tax-free bonds generally trade in the over-the-counter market and are valued
within the range of the latest quoted bid and asked prices. In the absence of a
sale or reported bid and asked prices, information with respect to bond and note
transactions, quotations from bond dealers, market transactions in comparable
securities, and various relationships between securities are used to determine
the value of the security. The Fund may utilize a pricing service, bank or
broker/dealer experienced in such matters to perform any of the pricing
functions under procedures approved by the Board of Directors. Securities for
which market quotations are not readily available are valued at fair value as
determined by management in accordance with procedures established by the Board
of Directors.
b. Income Taxes
No provision has been made for income taxes because the Fund's policy is to
qualify as a regulated investment company under the Internal Revenue Code and to
distribute all of its taxable income.
c. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Interest income and estimated expenses are accrued daily. Bond discount and
premium are amortized on an income tax basis. Distributions to shareholders are
recorded on the ex-dividend date.
Realized and unrealized gains and losses and net investment income, other than
class specific expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class.
d. Accounting Estimates
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the amounts of income and expense during the reporting
period. Actual results could differ from those estimates.
2. CAPITAL STOCK
The Fund offers two classes of shares: Class I and Class II. The shares differ
by their initial sales load, distribution fees, voting rights on matters
affecting a single class and the exchange privilege of each class.
At October 31, 1998, there were 10 billion shares of no par value stock
authorized, of which 3 billion each were designated as Class I and Class II.
Transactions in the Fund's shares were as follows:
<TABLE>
<CAPTION>
Six months ended Year ended
October 31, 1998 April 30, 1998
------------------------------------------------------------------
Shares Amount Shares Amount
------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares:
Shares sold ................................ 61,185,738 $ 756,127,723 114,214,913 $ 1,390,939,797
Shares issued in reinvestment of distributions 6,438,796 79,316,705 13,093,027 159,083,079
Shares redeemed ............................ (66,857,382) (826,507,779) (134,063,708) (1,633,143,741)
------------------------------------------------------------------
Net increase (decrease) .................... 767,152 $ 8,936,649 (6,755,768) $ (83,120,865)
==================================================================
Class II Shares:
Shares sold ................................ 3,595,843 $ 44,424,342 5,941,310 $ 72,517,830
Shares issued in reinvestment of distributions 188,524 2,323,994 259,109 3,154,246
Shares redeemed ............................ (630,733) (7,786,833) (1,202,566) (14,672,327)
------------------------------------------------------------------
Net increase ............................... 3,153,634 $ 38,961,503 4,997,853 $ 60,999,749
==================================================================
</TABLE>
3. TRANSACTIONS WITH AFFILIATES
Certain officers and directors of the Fund are also officers or directors of
Franklin/Templeton Distributors, Inc. (Distributors), Franklin Advisers, Inc.
(Advisers), Franklin/Templeton Investor Services, Inc. (Investor Services), and
Franklin Templeton Services, Inc. (FT Services), the Fund's principal
underwriter, investment manager, transfer agent, and administrative manager,
respectively.
The Fund pays an investment management fee to Advisers based on the average net
assets of the Fund as follows:
Annualized
Fee Rate Month-End Net Assets
-----------------------------------------------------------------
.625% First $100 million
.50% Over $100 million, up to and including $250 million
.45% Over $250 million, up to and including $10 billion
Fees are further reduced on net assets over $10 billion.
Under an agreement with Advisers, FT Services provides administrative services
to the Fund. The fee is paid by Advisers based on average daily net assets, and
is not an additional expense of the Fund.
3. TRANSACTIONS WITH AFFILIATES (cont.)
The Fund reimburses Distributors up to .10% and .65% per year of the average
daily net assets of Class I and Class II, respectively, for costs incurred in
marketing the Fund's shares.
Distributors paid net commissions on sales of the Fund shares, and received
contingent deferred sales charges for the period of $1,492,843 and $33,627,
respectively.
The Fund paid transfer agent fees of $1,288,527 of which $1,208,001 was paid to
Investor Services.
4. INCOME TAXES
At April 30, 1998, the Fund had tax basis capital losses of $25,878,831 which
may be carried over to offset future capital gains. Such losses expire as
follows:
Capital loss carryovers expiring in:
2003 ............................. $22,451,357
2005 ............................. 3,427,474
------------
$25,878,831
============
At October 31, 1998, the net unrealized appreciation based on the cost of
investments for income tax purposes of $6,659,617,258 was as follows:
Unrealized appreciation ........... $579,370,985
Unrealized depreciation ........... (2,393,056)
------------
Net unrealized appreciation ....... $576,977,929
============
5. INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding short-term securities) for the
period ended October 31, 1998 aggregated $520,820,687 and $463,656,753,
respectively.
6. CREDIT RISK
The Fund has investments in excess of 10% of its total net assets in the state
of New York. Such concentration may subject the Fund more significantly to
economic changes occurring within that state.
Franklin Federal Tax-Free Income Fund
Semi-Annual Report
October 31, 1998.
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING (PURSUANT TO ITEM
304 (a) OF REGULATION S-T)
GRAPHIC MATERIAL (1)
This chart shows in pie format the credit quality breakdown of the Franklin
Federal Tax-Free Income Fund based on total long-term investments as of
10/31/98.
AAA 38.1%
AA 12.7%
A 19.5%
BBB 27.2%
Below Investment Grade 2.5%
* Quality breakdown may include internal ratings for bonds not rated by a
national rating agency.
GRAPHIC MATERIAL (2)
This chart shows the portfolio breakdown by sector based on the percentage of
total long-term investments on 10/31/98 for the Franklin Federal Tax-Free
Income Fund.
% of Total Long-
Sector Term Investments
Utilities 25.2%
Prerefunded 13.9%
Housing 13.0%
Transportation 12.0%
Hospitals 10.6%
General Obligations 8.1%
Industrial 6.3%
Other Revenue 4.0%
Education 3.1%
Certificates of Participation 1.9%
Health Care 1.3%
Tax Allocation 0.4%
Sales Tax Revenue 0.2%
GRAPHIC MATERIAL (3)
The following line graph compares the performance of the Bond Buyer Municipal
40 Index to the 30-year U.S. Treasury yield from 5/1/98 to 10/31/98.
30-Year U.S. Bond Buyer 40
Treasury Index
- ---------------------------------------------------------
5/1/98 5.94% 5.37%
5/4/98 5.94% 5.35%
5/5/98 5.98% 5.36%
5/6/98 5.94% 5.34%
5/7/98 5.95% 5.34%
5/8/98 5.98% 5.34%
5/11/98 6.04% 5.36%
5/12/98 5.96% 5.33%
5/13/98 5.95% 5.30%
5/14/98 5.98% 5.28%
5/15/98 5.97% 5.28%
5/18/98 5.92% 5.26%
5/19/98 5.94% 5.26%
5/20/98 5.89% 5.24%
5/21/98 5.93% 5.25%
5/22/98 5.90% 5.26%
5/26/98 5.85% 5.23%
5/27/98 5.83% 5.22%
5/28/98 5.83% 5.23%
5/29/98 5.81% 5.22%
6/1/98 5.78% 5.22%
6/2/98 5.80% 5.23%
6/3/98 5.80% 5.24%
6/4/98 5.82% 5.25%
6/5/98 5.79% 5.22%
6/8/98 5.79% 5.23%
6/9/98 5.79% 5.23%
6/10/98 5.70% 5.20%
6/11/98 5.65% 5.19%
6/12/98 5.66% 5.18%
6/15/98 5.61% 5.16%
6/16/98 5.65% 5.18%
6/17/98 5.74% 5.23%
6/18/98 5.70% 5.21%
6/19/98 5.67% 5.22%
6/22/98 5.66% 5.21%
6/23/98 5.64% 5.21%
6/24/98 5.66% 5.22%
6/25/98 5.66% 5.23%
6/26/98 5.64% 5.23%
6/29/98 5.65% 5.23%
6/30/98 5.62% 5.22%
7/1/98 5.63% 5.23%
7/2/98 5.60% 5.21%
7/6/98 5.57% 5.21%
7/7/98 5.60% 5.21%
7/8/98 5.63% 5.22%
7/9/98 5.60% 5.21%
7/10/98 5.63% 5.21%
7/13/98 5.68% 5.23%
7/14/98 5.72% 5.25%
7/15/98 5.70% 5.25%
7/16/98 5.72% 5.26%
7/17/98 5.75% 5.27%
7/20/98 5.71% 5.26%
7/21/98 5.67% 5.25%
7/22/98 5.68% 5.25%
7/23/98 5.66% 5.25%
7/24/98 5.68% 5.25%
7/27/98 5.70% 5.25%
7/28/98 5.74% 5.26%
7/29/98 5.77% 5.26%
7/30/98 5.73% 5.25%
7/31/98 5.72% 5.26%
8/3/98 5.67% 5.24%
8/4/98 5.65% 5.24%
8/5/98 5.66% 5.24%
8/6/98 5.67% 5.24%
8/7/98 5.63% 5.22%
8/10/98 5.63% 5.22%
8/11/98 5.60% 5.20%
8/12/98 5.62% 5.21%
8/13/98 5.60% 5.21%
8/14/98 5.55% 5.20%
8/17/98 5.56% 5.19%
8/18/98 5.56% 5.19%
8/19/98 5.56% 5.19%
8/20/98 5.52% 5.18%
8/21/98 5.46% 5.16%
8/24/98 5.48% 5.16%
8/25/98 5.44% 5.15%
8/26/98 5.44% 5.13%
8/27/98 5.38% 5.12%
8/28/98 5.37% 5.12%
8/31/98 5.30% 5.11%
9/1/98 5.34% 5.14%
9/2/98 5.34% 5.15%
9/3/98 5.31% 5.14%
9/4/98 5.29% 5.15%
9/8/98 5.34% 5.16%
9/9/98 5.28% 5.15%
9/10/98 5.18% 5.13%
9/11/98 5.23% 5.13%
9/14/98 5.23% 5.14%
9/15/98 5.25% 5.15%
9/16/98 5.23% 5.13%
9/17/98 5.18% 5.12%
9/18/98 5.15% 5.10%
9/21/98 5.12% 5.07%
9/22/98 5.16% 5.09%
9/23/98 5.16% 5.09%
9/24/98 5.15% 5.09%
9/25/98 5.13% 5.09%
9/28/98 5.15% 5.09%
9/29/98 5.10% 5.08%
9/30/98 4.98% 5.04%
10/1/98 4.90% 4.99%
10/2/98 4.85% 4.97%
10/5/98 4.70% 4.95%
10/6/98 4.75% 4.95%
10/7/98 4.83% 4.98%
10/8/98 4.99% 5.04%
10/9/98 5.13% 5.12%
10/13/98 5.10% 5.11%
10/14/98 5.00% 5.09%
10/15/98 5.02% 5.09%
10/16/98 4.96% 5.05%
10/19/98 4.98% 5.04%
10/20/98 5.06% 5.08%
10/21/98 5.08% 5.08%
10/22/98 5.13% 5.11%
10/23/98 5.16% 5.14%
10/26/98 5.13% 5.14%
10/27/98 5.08% 5.12%
10/28/98 5.13% 5.12%
10/29/98 5.09% 5.11%
10/30/98 5.15% 5.13%
GRAPHIC MATERIAL (4)
This chart shows the dividend distributions for Franklin Federal Tax-Free
Income Fund - Class I from 5/1/98 to 10/31/98.
May 5.6 cents
June 5.6 cents
July 5.6 cents
August 5.6 cents
September 5.6 cents
October 5.6 cents
Total 33.6 cents
GRAPHIC MATERIAL (5)
This chart shows in bar format the comparison between Franklin Federal
Tax-Free Income Fund - Class I distribution rate of 5.18% and the taxable
equivalent rate of 8.58% on 10/31/98.
GRAPHIC MATERIAL (6)
This chart shows the dividend distributions for Franklin Federal Tax-Free
Income Fund - Class II from 5/1/98 to 10/31/98.
May 5.00 cents
June 5.00 cents
July 5.01 cents
August 5.01 cents
September 5.01 cents
October 5.01 cents
Total 30.04 cents
GRAPHIC MATERIAL (7)
This chart shows in bar format the comparison between Franklin Federal
Tax-Free Income Fund - Class II distribution rate of 4.79% and the taxable
equivalent rate of 7.93% on 10/31/98.
