[THE AMERICAN FUNDS GROUP(R)]
THE TAX-EXEMPT BOND FUND OF AMERICA
[picture: portion of Route 66]
[graphic: Route 66 on the map of the continental United States]
SEMI-ANNUAL REPORT
for the six months ended February 28, 1998
THE TAX-EXEMPT BOND FUND OF AMERICA(R) seeks a high level of federally tax-free
current income, consistent with preservation of capital, through a diversified
portfolio of municipal bonds.
The Tax-Exempt Bond Fund of America is one of the 28 mutual funds in The
American Funds Group,(r) managed by Capital Research and Management Company.
Since 1931, Capital has invested with a long-term focus based on thorough
research and attention to risk.
INVESTMENT HIGHLIGHTS
through 2/28/98
6-MONTH TOTAL RETURN +4.79%
(income plus capital changes,
with dividends reinvested)
12-MONTH TOTAL RETURN +9.00%
TAX-FREE DISTRIBUTION RATE FOR FEBRUARY 4.70%
(income return only, reflecting
maximum sales charge)
TAXABLE EQUIVALENT DISTRIBUTION RATE 7.78%
(for February, assuming a 39.6% federal tax rate)
SEC 30-DAY TAX-FREE YIELD AS OF FEBRUARY 28 3.91%
(reflecting maximum sales charge)
For current yield information, please call
toll-free: 800/421-0180.
Fund results in this report were computed without a sales charge unless
otherwise indicated. Here are the total returns and average annual compound
returns with all distributions reinvested for periods ended March 31, 1998 (the
most recent calendar quarter), assuming payment of the 4.75% maximum sales
charge at the beginning of the stated periods:
Total Average Annual
Return Compound Return
10 YEARS +107.32% +7.56%
5 YEARS +32.34% +5.76%
12 MONTHS +5.24% -
Sales charges are lower for accounts of $25,000 or more. The fund's 30-day
yield as of March 31, 1998, calculated in accordance with the Securities and
Exchange Commission formula, was 3.94%. The fund's distribution rate as of that
date was 4.80%. The SEC yield reflects income the fund expects to earn based on
its current portfolio of securities, while the distribution rate is based
solely on the fund's past dividends. Accordingly, the fund's SEC yield and
distribution rate may differ.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS AND ARE NOT PREDICTIVE OF
FUTURE RESULTS. SHARE PRICE AND RETURN WILL VARY, SO YOU MAY LOSE MONEY BY
INVESTING IN THE FUND. THE SHORTER THE TIME PERIOD OF YOUR INVESTMENT, THE
GREATER THE POSSIBILITY OF LOSS. FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS
OF, OR INSURED OR GUARANTEED BY, THE U.S. GOVERNMENT, ANY FINANCIAL
INSTITUTION, THE FEDERAL DEPOSIT INSURANCE CORPORATION, OR ANY OTHER AGENCY,
ENTITY OR PERSON. Income may be subject to state or local income taxes. Capital
gain distributions and gains on the sale of certain bonds purchased at less
than par value are taxable.
FELLOW SHAREHOLDERS:
Aided by the unusual combination of low inflation and robust economic growth,
the bond market rallied during the first half of The Tax-Exempt Bond Fund of
America's fiscal year. Shareholders who reinvested their dividends saw the
value of their holdings rise 4.8% in the six months ended February 28, 1998.
That was in line with the 5.0% total return posted by the unmanaged Lehman
Brothers Municipal Bond Index.
During the period, shareholders received monthly tax-free dividends totaling
31.3 cents a share and a capital gain distribution of 3.8 cents a share, which
included a short-term gain of almost 1 cent. Investors who took their dividends
in cash had an income return of 2.6% (5.2% annualized), which is equivalent to
a 4.3% taxable income return (8.6% annualized) for investors in the 39.6%
federal bracket, and the value of their shares increased 2.2% for a total
return of 4.8%.
BOND PRICES RISE
The fund began its fiscal year last September with bond prices rising again
after a brief setback in August. Prices remained strong through the beginning
of 1998, dipping slightly in February. The higher prices were fueled in part by
what some analysts are now calling the "new paradigm" in the U.S. economy: the
confluence of strong growth, healthy corporate profits and, most importantly,
low inflation.
The bond market was also helped by the turmoil in Asian financial markets. The
region's financial problems touched off a "flight to quality" as investors sold
holdings in Asia and purchased assets denominated in U.S. dollars. The
increased demand for dollar-denominated assets boosted the value of the U.S.
currency. A strong dollar holds down the cost of imports which, in turn,
pressures domestic producers to keep their prices in line. Asia's troubles also
led many experts to predict the U.S. economy would weaken because exports to
the Far East, an important American market, would decline and imports into the
U.S. would grow. The stronger dollar and prospects for slower economic growth
reduced fears of inflation. As a result, investors bid bond prices higher.
It is too early to know whether the Asian troubles will dampen U.S. economic
expansion or if the economy will continue to grow rapidly, prompting the
Federal Reserve Board to raise short-term interest rates. Given these
countervailing forces, we anticipate interest rates will remain fairly stable
for the near future.
RELYING ON RESEARCH
Because it is impossible to predict what will happen in the bond market -
Asia's financial problems and the resulting upsurge in bond prices caught many
investors by surprise - we rely less on short-term economic predictions and
more heavily on fundamental research to find good investment opportunities.
Every holding in the fund's portfolio was added only after extensive research,
which often includes interviews with government officials, developers and
project managers. The investment professionals of The Tax-Exempt Bond Fund of
America visit the site of almost every investment.
Even during times of sustained rallies in the bond market, such extensive
research is necessary. We always invest with a view that extends well beyond
today's short-term fluctuations. The value of investing for the long term can
be seen in two holdings that have been in the fund's portfolio for more than
three years. Bonds issued by the Genesys Health System in Michigan rose in
price during the first half of this fiscal year in anticipation of a refunding
that occurred after the end of the fiscal half year, and improved their ratings
from BBB to AAA. The bonds of a continuing care facility in Calvert County,
Maryland also were refunded and increased substantially in value when their
ratings rose from B to AAA.
We will continue to closely monitor changes in interest rates and the outlook
for inflation and economic growth. At the same time, we will continue our
extensive research seeking to uncover good opportunities for long-term rewards.
We look forward to reporting to you again in six months.
Cordially,
/s/Paul G. Haaga, Jr. /s/Abner D. Goldstine
Paul G. Haaga, Jr. Abner D. Goldstine
Chairman of the Board President
April 17, 1998
WHY TAX-FREE INVESTING IS WORTHWHILE
The table below is based on the federal tax rates for 1998. To use this table,
find your estimated taxable income to determine your federal tax rate. Then
look at the right-hand column to see what you would have had to earn from a
taxable investment to equal the fund's 4.70% February tax-exempt distribution
rate.
Due to tax increases in recent years, many high-income investors are finding
that their returns on taxable fixed income issues have to be even higher to
match those currently offered by tax-exempt municipals. For instance, a couple
with a taxable income of $160,000 faces a federal tax rate of 36%. In this
bracket, the fund's current 4.70% distribution rate would be equivalent to a
return on a taxable fixed-income investment of 7.34%. Investors in the highest
bracket (39.6%) would need a taxable distribution rate of 7.78% to equal the
fund's tax-exempt distribution rate.
FEDERAL INCOME TAX RATES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
The fund's 4.70%
February tax-exempt
Your Taxable Income 1998 distribution rate is
Federal equivalent to a taxable
Single Joint Tax Rate (1) distribution rate of(2):
$ 0 - 25,350 $ 0 - 42,350 15.0% 5.53%
25,351 - 61,400 42,351 - 102,300 28.0 6.53
61,401 - 128,100 102,301 - 155,950 31.0 6.81
128,101 - 278,450 155,951 - 278,450 36.0 7.34
Over 278,450 Over 278,450 39.6 7.78
</TABLE>
(1) The federal rates are marginal rates. They do not include an adjustment for
the loss of personal exemptions and the phase-out of itemized deductions that
are applicable to certain taxable income levels.
(2)The fund's distribution rate in the table is based on offering price and
therefore reflects the effects of the maximum sales charge on the initial
investment. It is not a projection of future results. Such results will reflect
interest rate levels, changes in the value of portfolio securities, the effects
of portfolio transactions, fund expenses and applicable sales charges.
<TABLE>
THE TAX-EXEMPT BOND FUND OF AMERICA
Investment Portfolio, February 28, 1998 (Unaudited)
[begin pie chart]
Geographic Breakdown
<S> <C> <C>
New York -- 13.32%
California -- 10.32%
Illinois -- 8.72%
Michigan -- 7.95%
Washington -- 7.21%
Pennsylvania -- 6.68%
Other States -- 40.90%
Cash & Short-Term Securities -- 4.90%
[end pie chart]
[begin pie chart]
Aaa/AAA -- 30.63%
Aa/AA -- 19.75%
A/A -- 18.50%
Baa/BBB -- 19.38%
Below investment-grade 6.84%
Cash & Short-Term Securities 4.90%
[end bar chart]
Principal Market
Amount Value
(000) (000)
Tax-Exempt Securities Maturing in More than
One Year - 95.10%
Alabama - 0.40%
Daughters of Charity, National Health System,
5.25% 2015 $4,000 $4,025
The Industrial Development Board of the City of
Mobile, Solid Waste Revenue Refunding Bonds (Mobile
Energy Services Co., LLC Projects), Series
1995, 6.95% 2020 2,500 2,814
Alaska - 0.80%
Housing Finance Corp.,
Collateralized Bonds (Veterans Mortgage
Program), Series 1992A-1, 6.75% 2032 4025 4314
Municipality of Anchorage:
1995 General Obligation Refunding General Purpose
Bonds, Series B, FGIC Insured, 6.00% 2012 2895 3283
Municipal Light & Power, Senior Lien Refunding Electric
Revenue Bonds, MBIA Insured, Series 1996, 6.50% 2014 5000 5958
Arizona - 0.12%
State Transportation Board, Subordinated Highway
Revenue Bonds, Series 1992B, 6.50% 2008
(Prerefunded 2002) 1850 2053
California - 10.32%
General Obligation Bonds:
6.75% 2006 1000 1167
5.25% 2016 7320 7463
Educational Facilities Authority Revenue Bonds, Stanford University:
Series N, 5.35% 2027 3000 3056
Health Facilities Financing Authority,
Hospital Revenue Bonds (Downey Community Hospital), Series 1993,
5.75% 2015 4990 5138
Housing Financing Agency Revenue Bonds, Series C-4, Class I:
5.10% 2007 2000 2052
5.20% 2009 4465 4601
Public Works Board, Lease Revenue Bonds,
California Community Colleges, 1994 Series B
(Various Community College Projects):
6.75% 2005 2505 2880
7.00% 2007 1315 1503
Statewide Communities Development Authority:
Children's Hospital of Los Angeles, MBIA Insured,
6.00% 2008 1715 1927
Kaiser Permanente Medical Care Program, Semi-Annual
Tender Revenue Bonds:
Series A, 7.00% 2018 1900 2021
1985 Tender Bonds, 5.55% 2025 5000 5081
St. Joseph Health System Obligated Group,
Certificates of Participation:
5.50% 2014 2000 2051
5.50% 2023 2700 2752
Alameda Public Financing Authority, 1997 Revenue Bonds
(Marina Village Assessment District Bond Refinancing):
6.05% 2008 1000 1024
6.375% 2014 1000 1029
Anaheim Public Financing Authority, Lease Revenue Bonds (Anaheim
Public Improvements Project), Senior Lease Revenue Bonds,
1997 Series A, FSA Insured, 6.00% 2024 1000 1144
Association of Bay Area Governments Finance
Authority For Nonprofit Corporations, Certificates of Participation
(Stanford University Hospital),
Series 1993, 5.50% 2013 2000 2058
Central Valley Financing Authority, Cogeneration
Project Revenue Bonds (Carson Ice-Gen Project), Series 1993:
5.80% 2004 3300 3540
6.00% 2009 3750 3983
6.10% 2013 1000 1062
Culver City Redevelopment Financing Authority, 1993
Tax Allocation Refunding Revenue Bonds, AMBAC Insured,
5.00% 2023 3635 3547
Del Mar Race Track Authority, Revenue Refunding Bonds, Series 1996,
6.00% 2001 2060 2129
Long Beach Aquarium of the Pacific, Revenue Bonds
(Aquarium of the Pacific Project), 1995 Series A:
6.10% 2010 4000 4260
6.125% 2015 5500 5769
6.125% 2023 14000 14663
City of Los Angeles:
State Building Authority, Lease Revenue Refunding Bonds,
Department of General Services Lease, 1993 Series A:
5.375% 2006 3000 3212
5.50% 2007 5545 6005
Community Redevelopment Agency, Central Business District
Redevelopment Project, Tax Allocation Refunding Bonds, Series I:
5.00% 2001 4100 4197
Convention and Exhibition Center Authority,
Certificates of Participation:
7.375% 2018 (Prerefunded 1999) 1000 1067
7.00% 2020 (Prerefunded 1999) 2750 2919
Regional Airports Improvement Corp.,
Facilities Lease Refunding Revenue Bonds,
Issue of 1992, United Air Lines, Inc. (Los
Angeles International Airport), 6.875% 2012 2000 2196
County of Los Angeles:
Capital Asset Leasing Corp., Certificates of
Participation (Marina del Rey), Series A:
6.25% 2003 5500 5960
6.50% 2008 4750 5160
Metropolitan Transportation Authority,
Proposition C Sales Tax Revenue Bonds,
Second Series 1993B, AMBAC Insured, 5.25% 2023 1300 1303
Transportation Commission, Sales
Tax Revenue Bonds, Series 1989, 7.00% 2019 2000 2122
The Metropolitan Water District of Southern
California, Waterworks General Obligation Refunding
Bonds, 1993 Series A1, 5.50% 2010 3000 3173
Northern California Power Agency, Geothermal
Project #3, Special Revenue Bonds, 1993 Refunding
Series A, 5.60% 2006 3000 3189
County of Orange:
Aliso Viejo Special Tax Bonds
of Community Facilities District No. 88-1,
Series A of 1992:
7.15% 2006 (Prerefunded 2002) 2000 2290
7.35% 2018 (Prerefunded 2002) 10000 11532
Pleasanton Joint Powers Financing Authority,
Reassessment Revenue Bonds, 1993 Series A, 5.70% 2001 480 502
Riverside County Transportation Commission, Sales
Tax Revenue Bonds (Limited Tax Bonds), 1991
Series A, 6.50% 2009 (Prerefunded 2001) 3600 3948
Sacramento City Financing Authority, 1991 Revenue
Bonds, 6.80% 2020 (Prerefunded 2001) 5000 5579
Sacramento Cogeneration Authority, Cogeneration
Project Revenue Bonds:
Procter & Gamble Project, 1995 Series:
6.20% 2006 1000 1111
6.375% 2010 1000 1103
1995 Series:
6.00% 2002 1000 1068
6.00% 2003 2200 2370
County of Sacramento, Laguna Creek Ranch/Elliott Ranch
Community Facilities District No.1, Improvement Area No.2,
Special Tax Refunding Bonds, 6.30% 2021 500 525
San Francisco Bay Area Rapid Transit District,
Sales Tax Revenue Refunding Bonds, Series 1990,
AMBAC Insured, 6.75% 2009 3250 3512
Redevelopment Agency of the City and County of
San Francisco, Refunding Lease Revenue Bonds,
Series 1991 (George R. Moscone Convention
Center), 5.50% 2018 4000 4026
County of San Diego, Reassessment District No. 97-1
(4-S Ranch), Limited Obligation Improvement Bonds,
6.25% 2012 1000 1032
South Orange County, Public Financing Authority,
Special Tax Revenue Bonds, 1994 Series B (Junior
Lien Bonds):
6.65% 2003 1000 1030
6.75% 2004 1000 1031
Stanislaus Waste-to-Energy Financing Agency, Solid Waste Facility
Refunding Revenue Bonds (Ogden Martin Systems of Stanislaus, Inc.
Project), Series 1990, 7.625% 2010 3500 3753
City of Stockton, Mello-Roos Revenue Bonds, Series 1997A,
Community Facilities District No. 90-2 (Brookside Estates),
5.40% 2004(1) 500 512
The Regents of the University of California,
Various University of California Projects, 1993:
Series B, 5.375% 2009 2000 2147
Series A, 5.50% 2021 2000 2042
Colorado - 4.32%
Housing And Finance Authority:
Multi-Family Housing Insured Mortgage Revenue Bonds:
1997 Series C-3, 5.65% 2015 2300 2312
1982 Series A, 9.00% 2025 1780 1793
Single-Family Housing Program Senior and Subordinate Bonds:
1996 Series C-2, 7.10% 2015 3000 3361
1997 Series A-3, 7.00% 2016 1750 1962
1997 Series C-3, 6.75% 2017 1000 1110
1997 Series B-3, 6.80% 2028 1000 1122
Student Obligation Bond Authority, Student Loan Revenue
Bonds, 1994 Series L, 6.00% 2001 1065 1124
Arapahoe County, Capital Improvement Trust Fund
Highway Revenue Bonds (E-470 Project):
6.90% 2015 (Prerefunded 2005) 5750 6844
6.95% 2020 (Prerefunded 2005) 20500 24459
City and County of Denver, Airport System Revenue Bonds,
Series 1992A:
7.25% 2025 (Prerefunded 2002) 5590 6421
7.25% 2025 (Prerefunded 2002) 14210 16322
Eaglebend Affordable Housing Corp., Multi-Family Housing Project
Revenue Refunding Bonds, Series 1997 A, 6.45% 2021 1175 1217
The Regents of the University of Colorado, Master Lease
Purchase Agreement, Refunding Certificates of
Participation (Telecommunications and Cogeneration
Projects), Series 1996, AMBAC Insured, 6.00% 2005 5000 5498
Connecticut - 1.51%
Health and Educational Facilities Authority Revenue Bonds,
University of Hartford Issue, Series D, 6.75% 2012 2800 2992
Housing Finance Authority, Housing Mortgage Finance Program Bonds,
Subseries B-1, 6.25% 2011 1000 1067
Mashantucket (Western) Pequot Tribe, Special Revenue Bonds,
1996 Series A(2):
6.25% 2002 1000 1078
6.25% 2002 (Escrowed to Maturity) 1000 1086
6.25% 2003 2025 2203
6.375% 2004 5390 5944
6.375% 2004 (Escrowed to Maturity) 1985 2217
6.50% 2005 1510 1690
6.50% 2005 (Escrowed to Maturity) 1490 1694
6.40% 2011 2530 2832
6.40% 2011 (Prerefunded 2007) 2470 2853
Delaware - 0.06%
Economic Development Authority, First Mortgage Revenue Bonds
(Peninsula United Methodist Homes, Inc. Issue), Series 1997A,
6.00% 2009 1000 1070
District of Columbia - 1.19%
General Obligation Bonds:
Series 1992 B, MBIA Insured:
6.125% 2003 1750 1902
6.30% 2010 2900 3165
AMBAC Insured, 5.20% 2004 1000 1046
Series 1993 A, AMBAC Insured, 5.875% 2005 3000 3270
Series 1993 B-1, AMBAC Insured, 5.50% 2009 3000 3223
Hospital Revenue Refunding Bonds
(Medlantic Healthcare Group, Inc. Issue):
Series 1992 A, 7.00% 2005 2000 2182
Series 1993 A, MBIA Insured:
5.25% 2012 2000 2049
Series 1997A, MBIA Insured:
5.10% 2008 1000 1036
5.20% 2009 1000 1040
Redevelopment Land Agency, Sports Arena Special Tax Revenue
Bonds, Series 1996, 5.625% 2010 1275 1310
Florida - 1.25%
Arbor Green Community Development District (City of Tampa,
Hillsborough County), Special Assessment Revenue Bonds,
Series 1996, 7.60% 2018 1000 1078
Broward County, Resource Recovery Revenue Bonds,
Series 1984:
North Project, 7.95% 2008 2065 2252
South Project, 7.95% 2008 4310 4700
The Crossing at Fleming Island Community Development
District (Clay County), Special Assessment Bonds,
Series 1995, 8.25% 2016 1105 1219
Heritage Harbor Community Development District Revenue Bonds,
Series B, 6.00% 2003 1250 1237
Mid-Bay Bridge Authority, Revenue Refunding Bonds:
Series 1993D, 6.125% 2022 500 523
Series 1991B, 8.50% 2022 (Subject to Crossover Refunding) 4000 4660
Northern Palm Beach County Improvement District, Water
Control and Improvement Bonds, Unit of Development No. 9A,
Series 1996A:
6.80% 2006 1145 1225
7.30% 2027 1500 1636
Tampa Health Systems Revenue Bonds, MBIA Insured,
Series A-3:
5.50% 2006 1000 1084
5.00% 2009 1550 1608
Georgia - 1.38%
Municipal Electric Authority:
General Power Revenue Bonds:
1992B Series, 6.50% 2012 1215 1399
CTFS-1992B Series, 6.375% 2016 1000 1143
Mel Power, Project One Subordinated Bonds, AMBAC Insured,
Series B:
6.00% 2007(1) 1995 2231
5.625% 2009(1) 1000 1086
City of Atlanta:
Airport Facilities Revenue
Refunding Bonds, Series 1994 A, AMBAC Insured,
6.50% 2009 1000 1170
Special Purpose Facilities
Revenue Refunding Bonds (Delta Air Lines, Inc.
Project), Series 1989 A, 7.50% 2019 4500 4814
Fulco Hospital Authority, Revenue Anticipation
Certificates:
St. Joseph's Hospital of Atlanta, Inc.,
Series 1994, 4.80% 2001 2305 2365
Georgia Baptist Health Care System
Project:
Series 1992 A:
6.40% 2007 1000 1109
6.25% 2013 2100 2316
6.375% 2022 1595 1767
Series 1992 B, 6.375% 2022 610 676
Development Authority of Fulton County, Special
Facilities Revenue Bonds (Delta Air Lines, Inc.
Project), Series 1992, 6.95% 2012 3115 3444
Hawaii - 0.12%
City and County of Honolulu, General Obligation Bonds, Refunding
and Improvement Series, 1993B, 5.00% 2013 2000 2046
Illinois - 8.72%
Build Illinois Bonds (Sales Tax Revenue Bonds),
Series O, 6.00% 2002 1000 1077
Civic Center Bonds (Special State Obligation Bonds),
Series 1991, AMBAC Insured, 6.25% 2020 6500 7468
Educational Facilities Authority Revenue
Bonds, Wesleyan University, Series 1993,
5.625% 2018 1490 1542
Health Facilities Authority:
Revenue Bonds, Series 1993:
OSF Healthcare System, 5.75% 2007 6760 7229
Rush-Presbyterian-St. Luke's Medical Center Obligated Group,
MBIA Insured, 5.25% 2020 3000 2992
Refunding Bonds:
Advocate Health Care Network, Series 1997 A:
5.50% 2008 2110 2244
5.80% 2016 10000 10531
Edward Hospital Project, Series 1993 A:
5.75% 2009 1100 1148
6.00% 2019 1435 1484
Revenue and Revenue Refunding Bonds:
Evangelical Hospitals Corp., Series C,
6.25% 2022 (Escrowed to Maturity) 4000 4579
Lutheran General Health, Series C, 6.00% 2018 2705 3001
Revenue Bonds, Series 1992 (Edward Hospital
Association Project), 7.00% 2022 1000 1120
Revenue Refunding Bonds (Fairview),
Series 1995 A:
6.25% 2001 1105 1136
6.50% 2006 770 804
7.40% 2023 1500 1665
Revenue Bonds, Series 1994 A (Northwestern Memorial
Hospital), 6.00% 2024 2000 2135
Housing Development Authority, Multi-Family Housing Bonds,
1992 Series A, 7.00% 2010 1490 1593
Metropolitan Pier and Exposition Authority, McCormick Place
Expansion Project Bonds, Series 1992A, 6.50% 2027
(Prerefunded 2003) 3910 4413
City of Chicago:
General Obligation Bonds, Project and Refunding,
Series 1995B, FGIC Insured, 5.125% 2025 4000 3934
The County of Cook, General Obligation Capital Improvement
Bonds, Series 1996, FGIC Insured:
6.00% 2006 3920 4394
6.50% 2011 4000 4751
Chicago-O'Hare International Airport:
General Airport Second Lien Revenue Refunding Bonds,
1993 Series C, MBIA Insured, 5.00% 2018 7500 7306
Special Facilities Revenue Bonds for United
Air Lines:
1984 Series C, 8.20% 2018 5185 5554
Special Facilities Revenue Refunding Bonds:
Delta Air Lines, Inc. Terminal, 6.45% 2018 4435 4704
Series 1994 (American Airlines, Inc. Project),
8.20% 2024 2750 3371
Metropolitan Water Reclamation District of Greater
Chicago, Series B:
Capital Improvement Bonds, 5.25% 2004 5000 5300
Refunding Bonds, 5.30% 2005 5325 5684
Sales Tax Revenue Bonds, Series 1997,
FGIC Insured, 5.375% 2027 5000 5076
School Reform Board of Trustees of the Board of Education
of the City of Chicago, Unlimited Tax General Obligation Bonds
(Dedicated Tax Revenues), Series 1997, AMBAC Insured, 6.75% 2012 4000 4837
Skyway Toll Bridge Refunding Revenue Bonds,
Series 1994:
6.50% 2010 (Prerefunded 2004) 13250 14944
6.75% 2014 (Prerefunded 2004) 6500 7447
Water Revenue Bonds, Refunding
Series 1993, FGIC Insured:
6.50% 2011 4345 5154
5.50% 2025 2565 2483
Regional Transportation Authority, Cook, Du Page,
Kane, Lake, McHenry and Will Counties,
General Obligation Bonds:
Series 1994D, FGIC Insured, 7.75% 2019 4500 6066
Series 1990A, AMBAC Insured, 7.20% 2020 1000 1278
Indiana - 4.81%
Educational Facilities Authority, Educational
Facilities Revenue Bonds (University of Evansville
Project), Series 1996, 5.25% 2005 1000 1039
Health Facility Financing Authority, Hospital Revenue Bonds:
Charity Obligation Group, Series 1997D, 5.00% 2026 13500 13896
Clarian Health Partners, Inc., Series 1996A, 5.50% 2016 16250 16626
Housing Finance Authority, Single Family Mortgage
Refunding Revenue Bonds, 1992 Series A, 6.75% 2010 1275 1354
State Development Financing Authority:
Pollution Control Revenue Bonds (Inland Steel Co. Project No. 12),
6.85% 2012 2500 2783
Revenue Bond Exempt Facilities Inland Steel, 5.75% 2011 4000 4222
State Office Building Commission, Correctional
Facilities Program Revenue Bonds, Series 1995B,
AMBAC Insured, 6.25% 2012 8490 9832
Transportation Finance Authority, Airport
Facilities Lease Revenue Bonds, Series A:
6.50% 2007 3245 3570
6.50% 2007 (Prerefunded 2002) 3755 4191
6.75% 2011 (Prerefunded 2002) 2400 2712
City of East Chicago:
Pollution Control Refunding Revenue Bonds
(Inland Steel Co. Project No. 11), Series 1994, 7.125% 2007 3000 3433
Revenue Bonds (Inland Steel Co. Project No. 10),
Series 1993, 6.80% 2013 2000 2180
Hospital Authority of the City of Fort Wayne,
Revenue Bonds (Parkview Memorial Hospital, Inc.
Project), Series 1992:
6.375% 2013 6000 6450
6.40% 2022 2000 2143
Indianapolis Local Public Improvement Bond Bank,
Series 1992 D Bonds, 6.60% 2007 1960 2260
Hospital Authority of St. Joseph County, Health System Revenue Bonds,
(Memorial Health System),
Series 1998A, MBIA Insured:
5.50% 2006 2055 2212
5.50% 2007 1650 1781
5.50% 2008 1010 1088
Iowa - 0.49%
Finance Authority Single Family Mortgage Bonds, 1997 Series F,
5.55% 2016 2000 2056
Polk County Revenue Bond Catholic Health Initiatives Series A,
5.125% 2011 3020 3062
5.125% 2012 3170 3184
Kentucky - 0.50%
Economic Development Finance Authority Hospital System
Refunding and Improvement Revenue Bonds, Series 1997
(Appalachian Regional Healthcare, Inc. Project),
5.60% 2008 630 658
5.60% 2009 1305 1355
5.70% 2010 490 509
5.75% 2011 2190 2269
Higher Education Student Loan Corp., Insured
Student Loan Revenue Bonds, 1994 Series B,
6.20% 1999 1140 1186
Kenton County Airport Board, Special Facilities
Revenue Bonds (Delta Air Lines, Inc. Project):
Series 1985, 7.80% 2015 1000 1075
1992 Series B, 7.25% 2022 1350 1495
Louisiana - 3.23%
Health Education Authority, Revenue Bonds (Lambeth House Project),
Series 1996, 9.00% 2026 9000 10813
Lake Charles Harbor and Terminal District, Port
Facilities Revenue Refunding Bonds (Trunkline
LNG Co. Project), Series 1992, 7.75% 2022 28000 32346
Offshore Terminal Authority, Deepwater Port
Refunding Revenue Bonds (LOOP INC. Project):
First Stage Series B:
6.25% 2004 6340 6939
First Stage Series E:
7.45% 2004 1000 1088
7.60% 2010 (Prerefunded 2000) 585 646
7.60% 2010 415 453
Parish of St. Charles, Adjustable/Fixed-Rate
Pollution Control Revenue Bonds (Louisiana
Power & Light Co. Project),
Series 1984, 8.25% 2014 2490 2671
Maine - 0.17%
Housing Authority, Mortgage Purchase
Bonds, 1994 Series C-1, 5.90% 2015 2735 2834
Maryland - 1.42%
Community Development Administration, Department
of Housing and Community Development, Single
Family Program Bonds:
1990 First Series, 7.60% 2017 5920 6187
1997 First Series, 5.25% 2005 5815 6075
Health and Higher Educational Facilities Authority:
Revenue Bonds, Howard County General Hospital
Issue, Series 1993:
5.50% 2013 2300 2338
5.50% 2021 1225 1243
Project and Refunding Revenue Bonds,
Peninsula Regional Medical Center Issue, Series 1993,
5.25% 2012 1000 1016
Calvert County, Maryland Economic Development
Revenue Bonds (Asbury-Solomons Island Facility),
Series 1995, 8.625% 2024 2500 3154
Prince George's County, Hospital Revenue Bonds,
Dimensions Health Corp. Issue:
Series 1992, 7.25% 2017 (Prerefunded 2002) 750 855
5.30% 2024 3305 3282
Massachusetts - 2.08%
General Obligation Bonds Consolidated Loan of
1989, Series D, MBIA Insured, 7.00% 2009
(Prerefunded 1999) 1000 1069
Massachusetts Bay Transportation Authority, General
Transportation System Bonds, 1994 Series A
Refunding Bonds, 7.00% 2007 5000 5946
Health and Educational Facilities Authority Revenue Bonds:
Brigham and Women's Hospital Issue,
Series D, 6.75% 2024 7000 7711
Caregroup Issue, MBIA Insured,
Series A, 5.50% 2007 2675 2888
Housing Finance Agency, Single Family Housing Revenue Bonds,
Series 39, 6.50% 2014 1425 1487
Water Resources Authority:
General Revenue Bonds, 1990 Series A, 7.50% 2009
(Prerefunded 2000) 9500 10363
General Revenue Refunding Bonds, 1993 Series B,
5.25% 2009 2500 2587
Boston City Hospital (FHA Insured Mortgage),
7.625% 2021 980 1083
The New England Loan Marketing Corp.,
Student Loan Refunding Bonds:
1992 Series A, 6.50% 2002 1000 1091
1993 Series G, 5.20% 2002 1200 1234
Michigan - 7.95%
Hospital Finance Authority, Hospital Revenue Refunding Bonds:
Daughters of Charity, National Health System, 5.50% 2005 1750 1874
Genesys Health System Obligated Group, Series 1995A:
7.10% 2002 2055 2267
7.20% 2003 1000 1123
8.00% 2005 8880 10530
8.10% 2013 5000 5955
8.125% 2021 4500 5403
7.50% 2027 4520 5190
McLaren Obligated Group, Series 1993A, 5.375% 2013 2985 3014
Mercy Health Services, Series 1997T, 6.25% 2011 3255 3613
Pontiac Osteopathic, Series 1994 A:
6.00% 2014 3500 3703
6.00% 2024 3400 3586
Sinai Hospital of Greater Detroit, Series 1995:
6.625% 2016 5750 6368
6.70% 2026 1680 1863
Housing Development Authority, Rental Housing
Revenue Bonds, 1994 Series A:
6.20% 2003 1600 1685
AMBAC Insured, 6.40% 2005 2350 2538
Job Development Authority, Pollution
Control Revenue Bonds (Chrysler Corp.
Project), Series 1984, 5.70% 1999 7000 7189
City of Detroit,
General Obligation Revenue Bonds (Unlimited Tax):
Series 1995-A, 5.60% 2001 2250 2335
Series 1995-B:
6.25% 2001 6585 6951
6.75% 2003 8675 9575
7.00% 2004 2500 2820
6.25% 2005 2625 2886
6.25% 2008 1730 1896
6.25% 2009 1195 1302
6.25% 2010 1250 1357
Downtown Development Authority,
Tax Increment Bonds (Development Area No. 1 Projects),
Series 1996C:
6.20% 2017 9310 10101
6.25% 2025 4265 4578
Economic Development Corp. of Dickinson County, Solid Waste Disposal
Refunding Revenue Bonds, (Champion International Corp. Project),
Series 1989, 6.55% 2007 2000 2133
City of Royal Oak Hospital Financing Authority,
Hospital Revenue Refunding Bonds (William Beaumont
Hospital), Series 1993 G, 5.25% 2019 8000 7969
Charter County of Wayne, Special Airport Facilities
Revenue Refunding Bonds (Northwest Airlines, Inc.
Facilities), Series 1995, 6.75% 2015 13970 15414
Minnesota - 0.42%
Housing Finance Agency:
Housing Development Bonds, 1991 Series A, 6.85% 2007 2535 2696
Single Family Mortgage Bonds, 1994 Series E,
Remarketing 3/12/96, 5.60% 2013 2205 2271
Regents of the University of Minnesota, General
Obligations Bonds, Series 1996A, 5.50% 2006 2000 2164
Mississippi - 0.38%
Claiborne County, Adjustable/Fixed-Rate Pollution
Control Revenue Bonds (Middle South Energy, Inc.
Project), Series C, 9.875% 2014 6000 6395
Nevada - 0.23%
General Obligation (Limited Tax) Bonds, Series A-2, 6.00% 2011 2135 2418
City of Henderson, Local Improvement
District No. T-10 (Seven Hills) Limited Obligation
Improvement Bonds, 7.50% 2015 1495 1558
New Jersey - 1.42%
Economic Development Authority, First
Mortgage Revenue Fixed Rate Bonds:
Fellowship Village Project, Series 1995A, 9.25% 2025 7000 8834
Winchester Gardens at Ward Homestead Project,
Series 1996A:
8.50% 2016 4000 4426
8.625% 2025 3500 3889
Health Care Facility Financing Authority, Revenue Bond
Community Medical Center/Kimball, FSA Insured,
5.50% 2007 1500 1620
Housing and Mortgage Finance Agency,
Section 8 Bonds, 1991 Series A:
6.80% 2005 2570 2759
6.85% 2006 2500 2679
New Mexico - 0.17%
Mortgage Finance Authority, Single Family Mortgage
Purchase Refunding Senior Bonds, 1992 Series
A-1, 6.85% 2010 2750 2938
New York - 13.32%
Dormitory Authority:
State University Educational Facilities Revenue
Refunding Bonds:
Series B, 5.70% 2004 1485 1595
Series 1990 A, 7.50% 2013 3500 4463
Series 1990 B:
7.50% 2011 1720 2136
7.00% 2016 1000 1076
Court Facilities, Lease Revenue Bonds, Series 1993A,
5.50% 2010 4000 4139
City University System, Consolidated Second
General Resolution Revenue Bonds:
Series 1990 F, FGIC Insured, 7.50% 2020
(Prerefunded 2000) 5000 5498
Series G, 5.00% 2002 2000 2056
Center for Nursing/Rehabilitation, Inc. Revenue Bonds,
5.45% 2017 2100 2136
Edgar Health Care Center (Nursing Home) Revenue Bonds, FHA Insured,
4.90% 2013 1375 1354
The New York and Presbyterian Hospital,
Mortgage Hospital Revenue Bonds,
AMBAC Insured, 5.50% 2008 10000 10807
Secured Hospital Revenue Refunding Bonds:
Brookdale Hospital, Series J, 5.125% 2009 4300 4396
Wyckoff Heights Medical Center, Series H, 5.125% 2008 2315 2381
Environmental Facilities Corp., State Water
Pollution Control Revolving Fund Revenue Bonds
(New York City Municipal Water Finance Authority
Project):
Series 1994 A, 5.75% 2009 2000 2215
Series 1990 A, 7.50% 2012 500 547
Series 1991 E, 6.875% 2010 230 253
Series 1991 E, 6.875% 2010 (Prerefunded 2001) 1270 1404
Housing Finance Agency:
Health Facilities Revenue Bonds,
(New York City), 1996 Series A Refunding, 6.375% 2003 6000 6547
Service Contract Obligation Revenue Refunding Bonds,
Series 1997C, 5.20% 2010 1750 1794
Local Government Assistance Corp.:
Series 1991 A, 7.00% 2016 (Prerefunded 2001) 7000 7732
Series 1991 B, 7.50% 2020 (Prerefunded 2001) 6925 7749
Series 1991 C, 0% 2005 5000 3685
Series 1991 D:
7.00% 2011 (Prerefunded 2002) 2000 2255
7.00% 2018 (Prerefunded 2002) 8650 9752
6.75% 2021 (Prerefunded 2002) 1350 1510
Series 1992 C, 5.50% 2022 1000 1013
State Medical Care Facilities Finance Agency:
Mental Health Services Facilities Improvement
Revenue Bonds:
1991 Series A, 7.50% 2021 (Prerefunded 2001) 3645 4063
1994 Series A, 5.10% 2003 1720 1773
1997 Series B, 5.30% 2004 2220 2335
Series D, 5.25% 2023 1000 985
Series 1997B:
6.00% 2005 1000 1092
6.00% 2007 1750 1944
5.60% 2008 1300 1403
5.70% 2009 2795 3029
St. Luke's-Roosevelt Hospital Center FHA-Insured Mortgage
Revenue Bonds, 1993 Series A, 5.60% 2013 12660 13173
Metropolitan Transit Authority, Transit Facilities
Service Contract Bonds, Series O and P,
5.375% 2002 4000 4170
Urban Development Corp., Correctional
Capital Facilities Revenue Bonds:
Series 1993 A, Refunding Series, 5.30% 2005 2800 2915
Series 7, 5.25% 2009 1375 1420
Series 2, 6.50% 2021 (Prerefunded 2001) 3700 3952
Battery Park City Authority, Revenue Refunding
Bonds, Series 1993 A:
5.00% 2013 5000 4978
4.75% 2019 16000 14892
Castle Rest Residential Health Care Facility,
FHA Insured Mortgage Revenue Bonds,
Series 1997A, 5.60% 2017 1700 1764
City of New York, General Obligation Bonds:
Fiscal 1992 Series C, 6.50% 2004 5550 6125
Fiscal 1992 Series H:
6.875% 2002 (Escrowed to Maturity) 630 693
6.875% 2002 1270 1386
Fiscal 1995 Series F:
6.375% 2006 3000 3335
6.60% 2010 2000 2281
6.625% 2025 (Prerefunded 2005) 1110 1273
6.625% 2025 390 434
Fiscal 1993 Series A, 6.25% 2003 2200 2390
Fiscal 1991 Series B, 8.25% 2006 1500 1866
Fiscal 1995 Series E:
6.50% 2004 2500 2728
MBIA Insured, 6.20% 2008 3000 3415
Fiscal 1996 Series E, 6.50% 2006 7500 8436
Fiscal 1996 Series I, 6.50% 2006 10000 11259
Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds:
Fiscal 1991 Series C, 7.75% 2020 (Prerefunded 2001) 5000 5642
Fiscal 1994 Series B:
4.875% 2002 3000 3089
5.50% 2019 2000 2043
Transit Authority, Transit
Facilities Revenue Bonds (Livingston Plaza
Project), Series 1990, FSA Insured, 7.50% 2020
(Prerefunded 2000) 4000 4335
Triborough Bridge and Tunnel Authority, General
Purpose and Revenue Bonds:
Series Y, 6.00% 2012 1000 1131
Series S, 7.00% 2021 (Prerefunded 2001) 11400 12474
North Carolina - 1.52%
Eastern Municipal Power Agency, Power System Revenue
Bonds:
Series 1993 B:
6.00% 2006 3000 3245
7.25% 2007 5320 6239
7.00% 2008 10720 12470
6.00% 2026 1700 1830
Series 1993 C, 5.00% 2021 2300 2118
Ohio - 0.11%
County of Franklin, Hospital Facilities Revenue
Refunding and Improvement Bonds (Doctors Hospital
Project), 5.60% 2006 1750 1890
Oklahoma - 0.51%
Health System Revenue
Bonds, Baptist Medicine Center of Oklahoma,
Series 1995 C, AMBAC Insured, 6.375% 2009 2500 2812
State Industrial Authority, Health System
Revenue Refunding Bonds (Obligated Group consisting
of INTEGRIS Baptist Medical Center, Inc., INTEGRIS
South Oklahoma City Hospital Corp. and INTEGRIS
Rural Health, Inc.), AMBAC Insured, Series 1995D:
6.00% 2009 2500 2788
Tulsa Industrial Authority, Hospital Revenue
and Refunding Bonds,
St. John Medical Center Project, Series 1996,
5.375% 2017 3000 3066
Pennsylvania - 6.68%
Convention Center Authority, Refunding
Revenue Bonds, 1994 Series A, 6.25% 2004 10000 10676
Higher Educational Facilities Authority, Revenue
Bonds (Thomas Jefferson University), 1992
Series A, 6.625% 2009 1250 1376
Housing Finance Authority, Single Family Mortgage
Revenue Bonds,
Series 1992-33, 6.85% 2009 1000 1073
Housing Finance Agency, Rental Housing,
5.80% 2018 4000 4177
Industrial Development Authority,
Economic Development Revenue Bonds, Series 1994,
AMBAC Insured, 7.00% 2007 1750 2094
Allegheny County, Hospital Development Authority Revenue Bonds,
Catholic Health Systems,
Series A, AMBAC Insured:
5.00% 2010 2705 2761
5.25% 2011 2840 2944
Delaware County, Authority Revenue Bonds,
Catholic Health Systems,
Series A, AMBAC Insured:
5.50% 2008 1920 2070
5.00% 2010 2465 2516
5.25% 2011 4115 4265
Hospitals and Higher Education Facilities
Authority of Philadelphia:
Hospital Revenue Bonds (The Children's Hospital of
Philadelphia Project):
Series A of 1992:
6.50% 2009 (Prerefunded 2002) 4500 4967
6.50% 2021 (Prerefunded 2002) 3000 3312
Series A of 1993, 5.00% 2021 8000 7735
Frankford Hospital, Series A:
6.00% 2014 3705 3873
6.00% 2023 4000 4147
Jefferson Health Systems, Series A:
5.50% 2006 1500 1611
5.50% 2007 1400 1507
5.50% 2008 1000 1075
5.00% 2009 1000 1027
5.00% 2010 1000 1020
The Philadelphia Protestant Home, Series A:
6.50% 2027 1100 1146
Temple University Hospital,
5.70% 2009 1000 1053
Hospital Authority of Philadelphia, Hospital
Revenue Bonds (Temple University Hospital):
Series of 1993 A, 6.50% 2008 15500 17492
Series of 1983, 6.625% 2023 15385 16821
City of Pottsville Hospital Authority, Hospital
Revenue Bonds (The Pottsville Hospital and Warne
Clinic), Series of 1994, 7.25% 2024 8500 9468
Scranton-Lackawanna Health and Welfare Authority,
Hospital Revenue Bonds (Moses Taylor Hospital Project),
Series 1997:
6.05% 2010 1000 1069
6.15% 2012 2245 2385
Rhode Island - 1.68%
Convention Center Authority, Refunding Revenue
Bonds, MBIA Insured, 1993 Series B, 5.00% 2008 1590 1654
Depositors Economic Protection Corp., Special
Obligation Bonds:
1993 Series A, MBIA Insured:
5.75% 2012 4850 5358
6.25% 2016 4500 5199
1992 Series A, FSA Insured, 6.625% 2019
(Prerefunded 2002) 1000 1119
1993 Series A (Escrowed to Maturity):
6.375% 2022 7000 8248
5.75% 2021 1210 1319
5.75% 2021 2715 2960
Housing and Mortgage Finance Corporation,
Homeownership Opportunity Bonds, Series 3-A,
7.80% 2010 2500 2672
South Carolina - 0.64%
Florence County Hospital Revenue Bond, McLeod Regional Medical
Center Project, MBIA Insured,
Series A:
5.25% 2009 2645 2789
5.25% 2010 2785 2919
Lexington County Health Services District Inc., Hospital
Revenue Refunding and Improvement Bonds, FSA Insured, Series 1997:
5.50% 2007 2000 2145
5.00% 2009 1000 1023
5.125% 2021 2000 1966
South Dakota - 0.25%
Housing Development Authority,
Homeownership Mortgage Bonds, 1995 Series A,
5.80% 2014 3000 3125
6.00% 2023 1085 1132
Tennessee - 2.19%
Memphis-Shelby County Airport Authority, Special
Facilities Revenue Bonds, Refunding Series 1992
(Federal Express Corp.), 6.75% 2012 26375 29015
Health and Educational Facilities Board of the
Metropolitan Government of Nashville and Davidson
County (Blakeford Project), 9.25% 2024 6600 8219
Texas - 3.65%
National Research Laboratory Commission, General
Obligation Bonds, Series 1990 (Superconducting
Super Collider Project), 7.125% 2020
(Prerefunded 2000) 14450 15655
Dallas/Fort Worth International Airport
Facility Improvement Corp.:
American Airlines, Inc., Revenue Bonds, Series 1995,
6.00% 2014 9790 10364
Delta Air Lines, Inc., Revenue Refunding Bonds,
Series 1993, 6.25% 2013 2400 2551
Harris County Health Facilities Development
Corp., SCH Health Care System Revenue Bonds
(Sisters of Charity of the Incarnate Word, Houston):
Series 1991A, 7.10% 2021 (Prerefunded 2001) 8000 8894
Series 1997B, 6.25% 2027 1500 1800
Hidalgo County Health Services Corp., Hospital Revenue
Bonds (Mission Hospital, Inc. Project), Series 1996:
7.00% 2008 1000 1117
6.75% 2016 1740 1908
North Texas Health Facilities Development Corp., United Regional
Health Care Systems Inc., MBIA Insured:
5.25% 2008 1640 1735
5.00% 2009 2330 2400
Northeast Medical Center, Hospital Authority, County of Humble,
Revenue Bonds, FSA Insured, 6.25% 2012 1000 1151
Northside Independent School District (Bexar,
Medina and Bandera Counties), Unlimited
Tax School Building Bonds, Series 1991, 6.375% 2008
(Prerefunded 2001) 3500 3728
Tarrant County Health Facilities, Development Corp.
Healthy Resources System Revenue Bonds, MBIA Insured,
Series 1997A, 5.50% 2007 4000 4308
Tomball Hospital Authority, Hospital Revenue
Refunding Bonds, Series 1993, 6.125% 2023 6250 6570
Utah - 0.97%
Housing Finance Agency, Single Family Mortgage
Bonds, 1995 Issue E (Federally Insured or
Guaranteed Mortgage Loans), 5.50% 2024 1150 1178
Intermountain Power Agency:
Special Obligation Refunding Bonds,
5th Crossover Series 1987B,
1997 Series A, AMBAC Insured, 6.50% 2011 1435 1699
Salt Lake City, Hospital Revenue Bonds, Series
1992 (IHC Hospitals, Inc.):
5.50% 2021 8100 8225
6.25% 2023 5000 5437
Vermont - 0.02%
Housing Finance Agency, Single Family
Housing Bonds, Series 4, 5.75% 2012 290 296
Virginia - 1.30%
Housing Development Authority, Commonwealth Mortgage
Bonds:
Series D, Subseries D-3, Remarketing 5/30/96:
6.00% 2012 1430 1516
6.00% 2012 1470 1558
6.05% 2013 1510 1602
6.05% 2013 1555 1649
Series D, Subseries D-4, Remarketing 7/16/96:
6.00% 2009 1180 1252
6.00% 2009 1220 1294
6.05% 2010 1255 1336
6.05% 2010 1290 1373
Big Stone Gap Redevelopment and Housing Authority Correctional Facility
Lease, Wallens Ridge Development Project
5.25% 2010 2000 2074
Industrial Development Authority of Fairfax
County, Hospital Revenue Refunding Bonds (Inova
Health System Hospitals Project), Series 1993A:
4.80% 2005 1850 1908
5.00% 2011 1300 1325
5.00% 2023 1200 1200
Industrial Development Authority of the County of
Hanover, Hospital Revenue Bonds (Memorial Regional
Medical Center Project at Hanover Medical Park),
Series 1995, MBIA Insured,
6.50% 2009 1000 1178
Industrial Development Authority of the City of
Norfolk, Hospital Revenue Bonds (Sentara
Hospitals-Norfolk Project), Series 1991,
6.50% 2013 2500 2818
Washington - 7.21%
General Obligation, Series B:
5.50% 2010 2000 2169
5.50% 2018 13100 13960
Health Care Facilities Authority, Revenue Bonds,
Refunding Series 1997A (Virginia Mason Medical Center),
MBIA Insured:
6.00% 2005 2325 2560
6.00% 2007 1500 1672
Public Power Supply System:
Nuclear Project No. 1 Refunding Revenue Bonds,
Series 1989A:
7.50% 2015 (Prerefunded 1999) 1820 1943
6.00% 2017 2000 2057
Series 1997B, 5.13% 2014 15000 14950
Nuclear Project No. 2 Refunding Revenue Bonds:
Series 1990A, 7.375% 2012 (Prerefunded 2000) 17335 18977
Series 1992A, 5.90% 2004 3850 4159
Series 1993B, FSA Insured, 5.65% 2008 3030 3289
Series 1994A:
6.00% 2007 19900 21988
5.25% 2008 5000 5189
Series 1998A, 5.75% 2008 2000 2173
Nuclear Project No. 3 Refunding Revenue Bonds:
BIG Insured, 7.25% 2016 (Prerefunded 1999) 5000 5320
Series 1989 B:
7.25% 2015 (Prerefunded 2000) 5450 5874
FGIC Insured, 7.00% 2000 4500 4830
5.375% 2015 5000 5016
7.125% 2016 5250 6521
Wisconsin - 1.34%
Health and Educational Facilities Authority,
Revenue Bonds:
Children's Hospital Project, Series 1993, FGIC Insured,
5.50% 2006 2000 2163
Medical College of Wisconsin, Series 1993, 5.95% 2015 3000 3138
Revenue Refunding Bonds (Wausau Hospital, Inc.)
Series A, AMBAC Insured, 5.00% 2009 2505 2571
Housing and Economic Development Authority, Housing
Revenue Bonds, 6.40% 2003 3480 3685
Pollution Control and Industrial Development Revenue
Bonds (General Motors Corp. Projects), City
of Janesville, Series 1984, 5.55% 2009 3000 3204
Public Power Incorporated System,
Power Supply System Revenue Bonds, Series
1990 A, AMBAC Insured, 7.40% 2020
(Prerefunded 2000) 500 548
City of Superior, Limited Obligation
Refunding Revenue Bonds (Midwest Energy Resources
Co. Project), Series E-1991 (Collateralized),
FGIC Insured, 6.90% 2021 6000 7429
Wyoming - 0.07%
Community Development Authority, Single Family
Mortgage Bonds, 1989 Series A, 7.90% 2017 225 232
Student Loan Corp., Student Loan Revenue
Refunding Bonds, Series 1991, 6.25% 1999 950 987
Guam - 0.18%
General Obligation Bonds, 1995 Series A, 5.625% 2002 3000 3038
-----------
1618011
-----------
Tax-Exempt Securities Maturing in
One Year or Less - 3.83%
State of California, Tax and Revenue Anticipation Notes,
Series A, 4.50% 6/30/98 4310 4324
State of Colorado, Tax and Revenue Anticipation Notes,
1997 Series A, 4.50% 6/26/98 3800 3811
State of California, County of Contra Costa, Tax and Revenue
Anticipation Notes, 1997-1998 Series A, 4.50% 7/1/98 4200 4213
State of Texas, City of Houston, Tax and Revenue Anticipation Notes,
Series 1997, 4.50% 6/30/98 6500 6519
Los Angeles County, Tax and Revenue Anticipation Notes, 1500 1505
4.50% 6/30/98
State of Louisiana, Offshore Terminal Authority, Deepwater Port
Refunding Revenue Bonds (LOOP INC. Project),
First Stage Series B, 5.40% 1998 3150 3175
State of Michigan Notes,
4.50% 9/30/98 5000 5029
State of New Mexico, 1997-98 Tax and Revenue Ancticipation Notes,
Series 1997, 4.50% 6/30/98 1700 1705
City of New York, General Obligation Bonds,
Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds,
Fiscal 1989 Series B, FGIC Insured, 7.625% 2017
(Prerefunded 1998) 3000 3081
State of Pennsylvania, School District of Philadelphia, Tax and
Revenue Anticipation Notes, Series of 1997-1998,
4.50% 6/30/98 9000 9026
State of Texas, Tax and Revenue Anticipation Notes,
Series A, 4.75% 8/31/98 7000 7042
Commonwealth Transportation Board, Commonwealth of
Virginia Transportation Contract Revenue Bonds,
Series 1988 (Route 28 Project), 7.80% 2016
(Prerefunded 1998) 3500 3572
State of Wisconsin:
Operating Notes, 4.50% 6/15/98 10200 10228
Series 1997B, Tax-Exempt Commercial Paper, 3.50% 3/4/98 1900 1900
-----------
65130
-----------
TOTAL TAX-EXEMPT SECURITIES (cost: $1,544,111,000) 1683141
Excess of cash and receivables over payables 18311
-----------
NET ASSETS $1,701,452
===========
(1)Represents a when-issued security.
(2)Purchased in a private placement transaction; resale may be limited to qualified
institutional buyers; resale to the public may require registration.
See Notes to Financial Statements
</TABLE>
<TABLE>
The Tax-Exempt Bond Fund of America
Financial Statements
<S> <C> <C>
Statement of Assets and Liabilities
at February 28, 1998 (dollars in thousands) (Unaudited)
Assets:
Tax-exempt securities (cost: $1,544,112) $1,683,141
Cash 67
Receivables for--
Sales of investments $ 0
Sales of fund's shares 5,787
Accrued interest 24,901 30,688
---------- -----------
1,713,896
Liabilities:
Payables for--
Purchases of investments 6,832
Repurchases of fund's shares 1,256
Dividends payable 2,945
Management services 476
Accrued expenses 935 12,444
---------- -----------
Net Assets at February 28, 1998--
Equivalent to $12.50 per share on
136,078,246 shares of $1 par value
capital stock outstanding (authorized
capital stock--200,000,000 shares) $1,701,452
===========
Statement of Operations
For the six months ended February 28, 1998 (Unaudited)
(dollars in thousands)
Investment Income:
Income:
Interest on tax-exempt securities $47,046
Expenses:
Management services fee 2,919
Distribution expenses 2,033
Transfer agent fee 216
Reports to shareholders 69
Registration statement and prospectus 39
Postage, stationery and supplies 66
Directors' fees 13
Auditing and legal fees 41
Custodian fee 18
Taxes other than federal income tax 21
Other expenses 65
----------- 5,500
-----------
Net investment income 41,546
-----------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 8,265
Net unrealized appreciation on investments:
Beginning of period 112,269
End of period 139,029
----------
Net increase in unrealized appreciation
on investments 26,760
-----------
Net realized gain and increase in
unrealized appreciation on investments 35,025
-----------
Net Increase in Net Assets Resulting
from Operations $76,571
===========
Statement of Changes in Net Assets
(dollars in thousands)
Six months Year
ended ended
February 28, August 31,
1998* 1997
----------- -----------
Operations:
Net investment income 41,546 $ 80,523
Net realized gain on investments 8,265 3,847
Net increase in unrealized appreciation
(depreciation) on investments 26,760 52,749
----------- -----------
Net increase in net assets
resulting from operations 76,571 137,119
----------- -----------
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (41,468) (80,789)
Distributions from net realized gain on
investments (5,006) (4,359)
----------- -----------
Total dividends and distributions (46,474) (85,148)
----------- -----------
Capital Share Transactions:
Proceeds from shares sold:
12,757,833 and 20,390,763
shares, respectively 158,688 246,583
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
2,298,110 and 4,336,074 shares,
respectively 28,549 52,363
Cost of shares repurchased:
8,768,595 and 19,372,679
shares, respectively (108,981) (233,780)
----------- -----------
Net increase in net assets
resulting from capital share
transactions 78,256 65,166
----------- -----------
Total Increase in Net Assets 108,353 117,137
Net Assets:
Beginning of period 1,593,099 1,475,962
----------- -----------
End of period $1,701,452 $1,593,099
=========== ===========
*Unaudited
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements (Unaudited)
1. The Tax-Exempt Bond Fund of America, Inc. (the "fund") is registered under
the Investment Company Act of 1940 as an open-end, diversified management
investment company. The fund seeks a high level of federally tax-free current
income, consistent with the preservation of capital, through a diversified
portfolio of municipal bonds. The following paragraphs summarize the
significant accounting policies consistently followed by the fund in the
preparation of its financial statements:
Tax-exempt securities are valued at prices obtained from a pricing service,
when such prices are available; however, in circumstances where the investment
adviser deems it appropriate to do so, such securities will be valued at the
mean quoted bid and asked prices or at prices for securities of comparable
maturity, quality and type. Securities with original maturities of one year or
less having 60 days or less to maturity are amortized to maturity based on
their cost if acquired within 60 days of maturity or, if already held on the
60th day, based on the value determined on the 61st day. Securities and assets
for which representative market quotations are not readily available are valued
at fair value as determined in good faith by a committee appointed by the Board
of Directors.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. In the event
the fund purchases securities on a delayed delivery or "when-issued" basis, it
will segregate with its custodian liquid assets in an amount sufficient to meet
its payment obligations in these transactions. Realized gains and losses from
securities transactions are reported on an identified cost basis. Interest
income is reported on the accrual basis. Premiums and original issue discounts
on securities purchased are amortized. Amortization of market discounts on
securities is recognized upon disposition, subject to applicable tax
requirements. Dividends to shareholders are declared daily after determination
of the fund's net investment income and paid to shareholders monthly.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision is
required.
As of February 28, 1998, net unrealized appreciation on investments for
book and federal income tax purposes aggregated $139,029,000, of which
$139,526,000 related to appreciated securities and $497,000 related to
depreciated securities. There was no difference between book and tax realized
gains on securities transactions for the six months ended February 28, 1998.
The cost of portfolio securities for book and federal income tax purposes was
$1,544,112,000 at February 28, 1998.
3. The fee of $2,919,000 for management services was incurred pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Directors of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.30% of the first $60 million of average net assets;
0.21% of such assets in excess of $60 million but not exceeding $1 billion;
0.18% of such assets in excess of $1 billion but not exceeding $3 billion; and
0.16% of such assets in excess of $3 billion; plus 3.00% on the first
$3,333,333 of the fund's monthly gross investment income; 2.50% of such income
in excess of $3,333,333 but not exceeding $8,333,333; and 2.25% of such income
in excess of $8,333,333.
Pursuant to a Plan of Distribution, the fund may expend up to 0.25% of its
average net assets annually for any activities primarily intended to result in
sales of fund shares, provided the categories of expenses for which
reimbursement is made are approved by the fund's Board of Directors. Fund
expenses under the Plan include payments to dealers to compensate them for
their selling and servicing efforts. During the six months ended February 28,
1998, distribution expenses under the Plan were $2,033,000. As of February 28,
1998, accrued and unpaid distribution expenses were $811,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $216,000. American Funds Distributors, Inc. (AFD), the principal
underwriter of the fund's shares, received $391,000 (after allowances to
dealers) as its portion of the sales charges paid by purchasers of the fund's
shares. Such sales charges are not an expense of the fund and, hence, are not
reflected in the accompanying statement of operations.
Directors who are unaffiliated with CRMC may elect to defer part or all of
the fees earned for services as members of the Board. Amounts deferred are not
funded and are general unsecured liabilities of the fund. As of February 28,
1998, aggregate amounts deferred and earnings thereon were $70,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Directors and officers of the fund
are or may be considered to be affiliated with CRMC, AFS and AFD. No such
persons received any remuneration directly from the fund.
4. As of February 28, 1998, accumulated undistributed net realized gain on
investments was $6,835,000 and additional paid-in capital was $1,419,416,000.
The fund made purchases and sales of investment securities of
$197,785,000 and $123,952,000 respectively, during the six months ended
February 28, 1998.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $18,000 includes $4,000 that was paid by these credits
rather than in cash.
<TABLE>
PER-SHARE DATA AND RATIOS
Year End August 31
<S> <C> <C> <C> <C> <C> <C>
Six Months
Ended
February 28,
1998/1/ 1997 1996 1995 1994 1993
Net Asset Value, Beginning
of Period $12.27 $11.86 $11.94 $11.65$12.43 $11.78
------- ------- ------- --------------------
Income from Investment
Operations:
Net investment income .31 .64 .64 .68 .67 .68
Net realized and
unrealized gain
(loss) on investments .27 .45 .01 .29 (.69) .73
------- ------- ------- --------------------
Total income from
investment operations .58 1.09 .65 .97 (.02) 1.41
------- ------- ------- --------------------
Less Distributions:
Dividends from net
investment income (.31) (.64) (.64) (.68) (.68) (.68)
Distributions from net
realized gains (.04) (.04) (.09) - (.08) (.08)
------- ------- ------- --------------------
Total distributions (.35) (.68) (.73) (.68) (.76) (.76)
------- ------- ------- --------------------
Net Asset Value, End of Period $12.50 $12.27 $11.86 $11.94$11.65 $12.43
======= ======= ======= ====================
Total Return/2/ 4.79/2/ 9.39% 5.51% 8.70%(0.14)%12.42%
Ratios/Supplemental Data:
Net assets, end of period
(in millions) $1,701 $1,593 $1,476 $1,424$1,385 $1,327
Ratio of expenses to average
net assets .33%/3/ .68% .68% .66% .69% .71%
Ratio of net income to
average net assets 2.52%/3/ 5.27% 5.35% 5.87% 5.53% 5.62%
Portfolio turnover rate 7.81%/3/ 14.39% 26.89%49.28% 22.40%15.55%
/1/Unaudited
/2/Excludes maximum sales charge of 4.75%.
/3/Based on operations for the period shown and,
accordingly, not representative
of a full year's operations.
</TABLE>
[THE AMERICAN FUNDS GROUP (R)]
OFFICES OF THE FUND AND
OF THE INVESTMENT ADVISER,
CAPITAL RESEARCH AND MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92821-5804
TRANSFER AGENT FOR
SHAREHOLDER ACCOUNTS
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, California 92822-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071-2371
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, PLEASE
CONTACT YOUR FINANCIAL ADVISER. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE
COMPANY, TOLL-FREE, AT 800/421-0180 OR VISIT WWW.AMERICANFUNDS.COM ON THE WORLD
WIDE WEB.
This report is for the information of shareholders of The Tax-Exempt Bond Fund
of America, but it may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details about charges,
expenses, investment objectives and operating policies of the fund. If used as
sales material after June 30, 1998, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
Litho in USA MED/INS/3777
Lit. No. TEBF-013-0498
Printed on recycled paper
