VANGUARD MUNICIPAL BOND FUNDS
ANNUAL REPORT
INCLUDED WITHIN THIS REPORT:
Vanguard Tax-Exempt
Money Market Fund
Vanguard Short-Term
Tax-Exempt Fund
Vanguard Intermediate-Term
Tax-Exempt Fund
Vanguard Long-Term
Tax-Exempt Fund
Vanguard High-Yield
Tax-Exempt Fund
October 31, 2000
[PHOTO OF SHIP]
[THE VANGUARD GROUP LOGO]
[MEMBERS OF THE VANGUARD GROUP(R)LOGO]
<PAGE>
OUR REPORTS TO THE OWNERS
At Vanguard, we regard our investors not as mere customers but as owners of the
enterprise. For that's exactly what a mutual fund shareholder is--part owner of
an investment company.
In our reports to you on how the company is doing, we have tried to convey
information without hyperbole and in the context of broad market trends and
relevant benchmarks.
We've introduced several changes to this year's annual reports to make them
even more useful. Among the changes:
**Larger type and redesigned graphics to make the reports easier to read.
**An at-a-glance summary of key points about fund performance and the
financial markets.
**A table--included for many funds--in which the investment adviser
highlights significant changes in holdings.
**Comparisons of fund performance and characteristics against both a broad
market index and a "best fit" benchmark. We hope you'll find that these changes
make the reports even more accessible and informative.
SUMMARY
* Vanguard Municipal Bond Funds provided returns that ranged from 3.9% to 9.7%
during the fiscal year ended October 31, 2000.
* Yields on high-quality, long-term bonds generally declined during the 12
months, while short-term yields climbed.
* Municipal bonds offered terrific value during the fiscal year. For most of the
period, the yields of tax-exempt long- term municipals and taxable long-term
Treasuries were nearly identical.
CONTENTS
1 Letter from the Chairman
7 Report from the Adviser
10 Fund Profiles
17 Glossary of Investment Terms
18 Performance Summaries
25 Financial Statements
39 Report of Independent Accountants
<PAGE>
LETTER
from the Chairman
Fellow Shareholders,
Municipal bonds delivered solid results during vanguard municipal bond funds'
2000 fiscal year, which ended October 31. Our total returns ranged from 3.9% for
the Tax-Exempt Money Market Fund to 9.7% for the Insured Long-Term Tax-Exempt
Fund. The adjacent table breaks each fund's total return into its components:
reinvested dividends plus capital change. It also presents each fund's yield as
of October 31.
COMPONENTS OF FISCAL YEAR ENDED
TOTAL RETURNS OCTOBER 31, 2000
SEC
TAX-EXEMPT TOTAL INCOME CAPITAL ANNUALIZED
FUND RETURN RETURN RETURN YIELD*
-------------------------------------------------------------------------------
Money Market** 3.9% 3.9% 0.0% 4.16%
Short-Term 4.2 4.1 0.1 4.31
Limited-Term 5.0 4.5 0.5 4.61
Intermediate-Term 7.3 5.3 2.0 4.74
Insured Long-Term 9.7 5.9 3.8 4.99
Long-Term 9.6 5.8 3.8 5.12
High-Yield 7.8 6.0 1.8 5.47
-------------------------------------------------------------------------------
*7-day yield for Tax-Exempt Money Market Fund; 30-day yield for other funds.
**An investment in a money market fund is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
the fund seeks to preserve the value of your investment at $1 per share, it is
possible to lose money by investing in the fund.
As shown in the table on page 3, the returns of all of our funds outpaced
those of their average mutual fund peers during fiscal 2000. In the table
following this letter, we present each fund's net asset value at the beginning
and end of the fiscal year, along with the per-share amount of income dividends.
None of the funds distributed any net realized capital gains during the period.
The Performance Summaries on pages 18 through 24 compare the returns of the
funds with those of appropriate unmanaged indexes over various periods.
FINANCIAL MARKETS IN REVIEW
During the 12 months ended October 31, the U.S. economy moved well into its
tenth year of uninterrupted growth, surpassing the length of the Vietnam-related
boom of the 1960s. Production rose rapidly during our fiscal year, unemployment
fell below 4% of the workforce, long-term interest rates declined, and inflation
was well-behaved, aside from a rise in energy prices. However, all was not calm
in certain segments of the fixed income markets. Extreme volatility afflicted
the U.S. stock market almost daily, and although the overall bond market fared
well, many lower-quality, higher-yielding securities
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took it on the chin. The table below presents the returns from bonds and stocks,
as well as the rate of inflation, over short- and intermediate-term periods.
Short-term interest rates rose substantially during the year, with the
yield on 3-month U.S. Treasury bills increasing 1.3 percentage points. The rise
essentially matched the 1.25-point boost in the federal funds rate accomplished
in four steps by the Federal Reserve Board, which was trying to cool the economy
to stave off inflation.
MARKET BAROMETER AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 2000
ONE THREE FIVE
YEAR YEARS YEARS
-------------------------------------------------------------------------------
BONDS
Lehman Aggregate Bond Index (Entire market) 7.3% 5.7% 6.3%
Lehman 10 Year Municipal Bond Index 8.2 5.0 5.7
Salomon Smith Barney 3-Month
U.S. Treasury Bill Index 5.7 5.2 5.2
-------------------------------------------------------------------------------
STOCKS
S&P 500 Index (Large-caps) 6.1% 17.6% 21.7%
Russell 2000 Index (Small-caps) 17.4 5.9 12.4
Wilshire 5000 Index (Entire market) 8.1 16.0 20.1
MSCI EAFE Index (International) -2.7 9.7 8.9
-------------------------------------------------------------------------------
CPI
Consumer Price Index 3.4% 2.5% 2.5%
-------------------------------------------------------------------------------
Yields were relatively flat, on balance, for most longer-term securities. A
rising federal budget surplus shrank the supply of U.S. Treasury bonds, and
their yields declined slightly for the fiscal year: The 30-year Treasury's yield
fell from 6.16% to 5.79%. Yields on 10-year Treasuries fell by about a
quarter-point. In general, bonds turned in solid results during the 12 months.
The Lehman Brothers Aggregate Bond Index, a proxy for taxable investment-grade
bonds, returned 7.3%, outpacing the Standard & Poor's 500 Index.
Though interest rate movements always play a big role in the bond market,
concerns about credit quality took center stage in recent months. The
deceleration in economic growth prompted investors to shy away from high-yield
("junk") bonds. The Lehman High Yield Bond Index returned -1.6% due to average
price declines exceeding 10%. Mortgage-backed securities and high-quality
corporate bonds performed well, benefiting from investors' shift toward
high-quality bonds and away from speculative issues.
Rising prices bolstered the returns from municipal bonds during the 12
months ended October 31. Short- and intermediate-term municipals, which suffered
modest price declines during the first half of the year, recovered all of their
losses--and then some--during the second half. The rise in price of longer-term
munis was due in part to a sharp slowdown in issuance. Strong consumer spending
helped to fill the coffers of state and local governments with tax revenues,
eliminating the need for some bond sales. High-grade municipal bonds also
benefited from a "flight to quality," in which skittish investors traded riskier
securities, such as stocks and low-rated bonds, for safer assets.
2
<PAGE>
On balance, high-grade tax-exempt bonds, as measured by the Lehman
Municipal Bond Index, returned 8.5% for the 12 months. This result consisted of
a 5.7% return from income and a 2.8% price increase.
THE RELATIVE VALUE OF MUNIS
As in the Treasury bond market, the yields on high-quality short- and long-term
municipal bonds moved in opposite directions during the fiscal year. The yield
on short-term municipals rose 50 basis points from October 31, 1999, to end the
period at 4.30%, while the yield on long-term municipals fell 34 basis points to
5.74%. (For investors in the maximum marginal tax bracket, tax-exempt yields of
4.30% and 5.74% are equivalent to yields of 7.12% and 9.50%, respectively, on
taxable bonds with the same maturities.) Remarkably, the yield of a long-term
municipal bond remained nearly identical to that of the 30-year U.S. Treasury
bond throughout the period.
The symmetry of these yields is noteworthy because municipals deliver
tax-exempt income, while Treasuries are subject to federal income taxes at rates
as high as 39.6%. The relatively low yields from Treasuries stem in part from
the fact that the U.S. Treasury Department has been repaying the nation's debt
ahead of schedule and has curtailed bond auctions.
FISCAL 2000 PERFORMANCE OVERVIEW
The Vanguard Municipal Bond Funds delivered fine results during the 12 months
ended October 31, both on an absolute basis and relative to funds with
comparable credit quality and maturities. Most of our funds also topped their
unmanaged benchmark indexes during the fiscal year, as shown in the Performance
Summaries. The Tax-Exempt Money Market Fund maintained its share price of $1, as
is expected but not guaranteed.
2000 TOTAL RETURNS FISCAL YEAR ENDED
OCTOBER 31
AVERAGE
TAX-EXEMPT VANGUARD COMPETING VANGUARD
FUND FUND FUND* ADVANTAGE
-------------------------------------------------------------------------------
Money Market 3.9% 3.4% +0.5%
Short-Term 4.2 4.1** +0.1
Limited-Term 5.0 4.4 +0.6
Intermediate-Term 7.3 6.2 +1.1
Insured Long-Term 9.7 8.0 +1.7
Long-Term 9.6 7.4 +2.2
High-Yield 7.8 3.1 +4.7
-------------------------------------------------------------------------------
*Derived from data provided by Lipper Inc.
**Adjusted to exclude funds with a dollar-weighted average maturity greater than
two years as of September 30, 2000.
While each of our funds topped its average peer, one did so by a
particularly big margin. Our High-Yield Tax-Exempt Fund soundly beat the average
return of competing funds because the average credit quality of its holdings was
significantly higher. This distinction made your fund less sensitive to the
rising level of concern over lower-rated bond
3
<PAGE>
issuers. This is the 12th annual report in which we have compared returns of the
seven Vanguard Municipal Bond Funds with those of their peer fund groups. Out of
these 84 side-by-side comparisons, Vanguard prevailed in 74, with just five
"ties" and five "losses." We do not know what returns the markets will provide
in the future, but I assure you that the highly skilled professionals in our
Fixed Income Group will remain focused on providing above-average returns
relative to our competitors. Thank you for the trust that your investment
reflects.
Our effort to provide superior returns is aided, as always, by our low
operating costs. During the fiscal year, the Vanguard Municipal Bond Funds had
expense ratios--annual operating expenses as a percentage of average net
assets--of either 0.18% or 0.19%. Expenses charged by our peers were roughly
three to six times higher, averaging between 0.68% (for tax-exempt money market
funds) and 1.17% (for high-yield funds), according to data from Lipper Inc.
Because operating expenses directly reduce the income a fund pays to its
shareholders, it is truly difficult to overstate their importance.
LONG-TERM PERFORMANCE OVERVIEW
The table below presents the records of the Vanguard Municipal Bond Funds over
the past decade, a more meaningful period over which to evaluate our
performance. It presents the average annual returns for the funds and their peer
groups, as well as the results of hypothetical $10,000 investments in each fund,
assuming the reinvestment of all dividends and capital gains distributions. Six
of our seven funds outperformed their average peers during the decade by annual
margins ranging from 0.4 to 1.4 percentage points. The Short-Term Tax-Exempt
Fund finished just a fraction of a percentage point behind its average peer.
TOTAL RETURNS TEN YEARS ENDED
OCTOBER 31, 2000
AVERAGE FINAL VALUE OF A $10,000
ANNUAL RETURN INITIAL INVESTMENT*
----------------------- --------------------------------
AVERAGE AVERAGE
VANGUARD COMPETING VANGUARD COMPETING
TAX-EXEMPT FUND FUND FUND FUND FUND DIFFERENCE
--------------------------------------------------------------------------------
Money Market 3.4% 3.0% $13,995 $13,400 $ 595
Short-Term 4.3 4.3 15,251 15,307 (56)**
Limited-Term 5.3 4.7 16,706 15,899 807
Intermediate-Term 6.9 5.9 19,427 17,780 1,647
Insured Long-Term 7.4 6.3 20,382 18,463 1,919
Long-Term 7.6 6.4 20,752 18,651 2,101
High-Yield 7.6 6.2 20,775 18,230 2,545
--------------------------------------------------------------------------------
*Assuming reinvestment of all income dividends and capital gains distributions.
**Difference due to rounding of returns.
4
<PAGE>
As the table shows, even small differences in annual returns result in
substantial differences in earnings over a ten-year period. On $10,000
investments made a decade ago, our margins of superiority over other funds
amounted to as much as $2,500--25% of the initial investment.
Compared with their unmanaged index benchmarks, the performance of our
funds during the past decade may appear less compelling. Of our six non-money
market funds, three topped their indexes, while three trailed. The comparison is
a bit misleading, however. Indexes don't bear any operating, advisory, or
transaction costs, as all mutual funds do to one extent or another. Our funds
have nonetheless closely tracked their indexes--an impressive fact that reflects
the sound investment advisory services provided by Vanguard Fixed Income Group.
Our in-house bond analysts and portfolio managers have done an excellent job
over the years. They maintain strict credit standards and observe the funds'
well-defined maturity ranges, allowing shareholders to be confident that their
investments have a certain level of risk--and no more.
IN SUMMARY
Though some investors will always be tempted to chase the hottest-performing
segment of the financial markets--whether it's technology stocks, small-caps, or
long-term bonds--market movements over the past 12 months have proven just how
difficult and treacherous that pursuit can be.
Sectors fall in and out of favor, asset classes shift from leader to
laggard, and securities rise and fall in unpredictable patterns. Rather than
fight these truths of investing, we suggest using them to your advantage. You
can do so by constructing a diversified portfolio of stock funds, tax-exempt or
taxable fixed income funds, and short-term investments that strikes a reasonable
balance between the risks and rewards of the financial markets.
Sincerely,
/S/ JOHN J. BRENNAN
[PHOTO OF JOHN J. BRENNAN]
JOHN J. BRENNAN
Chairman and Chief Executive Officer
November 16, 2000
5
<PAGE>
FUND STATISTICS
NET ASSET VALUE
PER SHARE TWELVE MONTHS
------------------------- ------------------------
OCTOBER 31, OCTOBER 31, INCOME CAPITAL
TAX-EXEMPT FUND 1999 2000 DIVIDENDS GAINS
---------------------------------------------------------------------------
Money Market $ 1.00 $ 1.00 $0.038 --
Short-Term 15.48 15.50 0.623 --
Limited-Term 10.59 10.64 0.470 --
Intermediate-Term 12.79 13.05 0.646 --
Insured Long-Term 11.69 12.14 0.649 --
Long-Term 10.34 10.73 0.572 --
High-Yield 10.13 10.31 0.582 --
---------------------------------------------------------------------------
6
<PAGE>
REPORT
from the Adviser VANGUARD FIXED INCOME GROUP
The fiscal year ended October 31 was a good one for bonds. The yield on a
long-term, high-quality municipal bond is lower now than when the period began.
For shareholders of the VANGUARD MUNICIPAL BOND FUNDS, falling yields mean that
the funds' total returns reflect a capital appreciation component in addition to
the income component.
--------------------------------------------------------------------------------
INVESTMENT PHILOSOPHY
Each fund holds a diversified group of municipal bonds designed to produce a
high level of current, tax-exempt income consistent with each fund's maturity
and quality mandates. In managing the funds, Vanguard Fixed Income Group follows
a disciplined investment policy, meeting well-defined standards for credit
quality and keeping each fund within its stated maturity range, while seeking to
exceed, with reasonable consistency over the long term, average returns achieved
by comparable funds.
--------------------------------------------------------------------------------
THE ECONOMY
As the fiscal year began, market participants were pondering many questions. How
many more times would the Federal Reserve Board need to raise short-term
interest rates to slow the economy? What would record low unemployment levels,
coupled with the increasing cost of oil, mean for the prospects for inflation?
How would the government use the budget surpluses the red-hot economy was
producing? Finally, who would win the presidential election?
In the fourth quarter of 1999, the U.S. economy grew at an annual pace of
8.3%, as measured by the gross domestic product (GDP). This was considered by
many market participants to be too fast to be sustainable and noninflationary.
More Americans than ever before were working. Unemployment reached a then-record
low of 4.1% of the workforce. The price of a barrel of oil was on its way to
increasing from the low $20s to more than $35 a barrel. All of these factors
suggested an increase in inflation and higher interest rates. The Federal
Reserve Board would ultimately raise short-term interest rates four times in
fiscal 2000: three times by 0.25 percentage point (25 basis points) and the last
time, in May, by 50 basis points. The Fed remains on guard against inflation.
By the end of the fiscal year, the economy had downshifted to a lower
growth rate. GDP increased at a 2.4% annual rate during July-September 2000. The
U.S. unemployment rate fell to a record low of 3.9%. Volatility in the stock
market increased, and many investors were facing year-over-year declines in the
values of their stock portfolios. The froth in the equity markets, typified by
the huge run-up in the technology-heavy Nasdaq Composite Index,
7
<PAGE>
was being painfully removed. Nasdaq reached a record 5,049 on March 10, 2000,
only to recede to 3,370 by October 31. So far, inflation has not proven to be a
threat to the economy. The Consumer Price Index for October 2000 increased only
0.2% over September's reading.
THE ELECTION
As of this writing, we don't know who will be the next president of the United
States. We expect the next president to have very little impact on the municipal
bond market. The candidates have very different proposals to spend the budget
surplus: George W. Bush favors across-the-board cuts in marginal income tax
rates, and Al Gore would like to increase spending on social programs. But since
the election left both houses of Congress almost evenly divided between
Republicans and Democrats, it will be difficult for either candidate to deliver
on his campaign promises without serious compromise.
THE MUNICIPAL BOND MARKET
As the economy grew in fiscal 2000, budget surpluses were created at all levels
of government. Budget surpluses have two key effects. First, they boost the
creditworthiness of state and local governments, whose coffers are flush with
cash. Second, surpluses diminish the need for state and local governments to
issue new bonds, since excess funds can be used to pay for projects. New
issuance of municipal bonds from January through October 2000 was 17% lower than
in the same period of 1999. The reduced issuance helped the prices of most
long-term municipal bonds keep pace with U.S. Treasury bonds. The yield of a
long-term AAA-rated general obligation municipal bond decreased by 37 basis
points during the fiscal year, in line with the 37-basis-point decrease in the
yield of the 30-year Treasury.
State and local governments are generally doing well. But issuers with
lower credit quality are finding that borrowing costs in the municipal bond
market are higher now in relation to high-quality borrowers than at any time in
the last five years. The yield differential between a top AAA-rated general
obligation bond and a BBB-rated bond almost doubled during the fiscal year. This
widening of the yield spread between higher- and lower-quality bonds means that
securities with higher credit quality have outperformed their poorer,
lower-quality relations. All the Vanguard Municipal Bond Funds have benefited
from this trend because the credit quality of their holdings is typically higher
than that of their average peers. Our low expense ratios allow us to emphasize
higher quality while still delivering competitive income to our shareholders.
OUR INVESTMENT APPROACH
Our approach to investing focuses on prudent risk taking and low costs. This
8
<PAGE>
approach has allowed the Vanguard Municipal Bond Funds to deliver returns
consistent with our charter across all segments of the market and to outperform
the majority of our peer funds over time.
Ian A. MacKinnon, Managing Director
Christopher M. Ryon, Principal
Pamela Wisehaupt Tynan, Principal
Reid O. Smith, Principal
November 13, 2000
9
<PAGE>
FUND PROFILE As of October 31, 2000
for Tax-Exempt Money Market Fund
This Profile provides a snapshot of the fund's characteristics. Key terms are
defined on page 17.
--------------------------------------
FINANCIAL ATTRIBUTES
Yield 4.2%
Average Maturity 56 days
Average Quality MIG-1
Expense Ratio 0.18%
--------------------------------------
--------------------------------------
DISTRIBUTION BY
CREDIT QUALITY
(% OF PORTFOLIO)
MIG-1/SP-1 75.2%
A-1/P-1 22.7
AAA/AA 1.7
A 0.4
--------------------------------------
Total 100.0%
--------------------------------------
--------------------------------------
LARGEST STATE CONCENTRATIONS
(% OF TOTAL NET ASSETS)
Texas 12.0%
Illinois 8.8
Florida 7.3
Georgia 6.5
Missouri 5.2
Colorado 4.5
Kentucky 4.4
Michigan 4.2
Pennsylvania 4.1
Ohio 3.6
--------------------------------------
Top Ten 60.6%
--------------------------------------
10
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FUND PROFILE As of October 31, 2000
for Short-Term Tax-Exempt Fund
This Profile provides a snapshot of the fund's characteristics, compared where
appropriate to both an unmanaged index that we consider a "best fit" for the
fund and a broad market index. Key terms are defined on page 17.
----------------------------------------------------------------------------
FINANCIAL ATTRIBUTES
LEHMAN
FUND BEST FIT* INDEX**
----------------------------------------------------------------------------
Number of Issues 249 4,923 39,195
Yield 4.3% 4.5% 5.1%
Yield to Maturity 4.4% -- --
Average Coupon 5.2% 5.5% 5.5%
Average Maturity 427 days 3.0 years 13.8 years
Average Quality AA AA+ AA+
Average Duration 1.1 years 2.6 years 7.4 years
Expense Ratio 0.18% -- --
Cash Investments 0.0% -- --
----------------------------------------------------------------------------
-------------------------
DISTRIBUTION BY
CREDIT QUALITY
(% OF PORTFOLIO)
AAA 46.5%
AA 39.6
A 7.2
BBB 6.4
BB 0.0
B 0.0
Not Rated 0.3
-------------------------
Total 100.0%
-------------------------
--------------------------
DISTRIBUTION BY MATURITY
(% of portfolio)
Under 1 Year 47.1%
1-3 Years 51.0
3-5 Years 1.9
Over 5 Years 0.0
--------------------------
Total 100.0%
--------------------------
---------------------------------------------------------
VOLATILITY MEASURES
LEHMAN
FUND BEST FIT* FUND INDEX**
---------------------------------------------------------
R-Squared 0.88 1.00 0.71 1.00
Beta 0.39 1.00 0.14 1.00
---------------------------------------------------------
----------------------------------------
LARGEST STATE CONCENTRATIONS
(% OF TOTAL NET ASSETS)
Texas 13.5%
New York 11.3
Pennsylvania 7.4
California 5.8
Massachusetts 5.1
Ohio 4.3
Illinois 4.2
Wisconsin 3.7
Virginia 3.4
New Mexico 3.0
----------------------------------------
Top Ten 61.7%
----------------------------------------
*Lehman 3 Year Municipal Bond Index. [PICTURE OF COMPUTER]
**Lehman Municipal Bond Index. VISIT OUR WEBSITE
WWW.VANGUARD.COM
FOR REGULARLY UPDATED
FUND INFORMATION
11
<PAGE>
FUND PROFILE As of October 31, 2000
for Limited-Term Tax-Exempt Fund
This Profile provides a snapshot of the fund's characteristics, compared where
appropriate to both an unmanaged index that we consider a "best fit" for the
fund and a broad market index. Key terms are defined on page 17.
-----------------------------------------------------------------------------
FINANCIAL ATTRIBUTES
LEHMAN
FUND BEST FIT* INDEX**
-----------------------------------------------------------------------------
Number of Issues 339 4,923 39,195
Yield 4.6% 4.5% 5.1%
Yield to Maturity 4.7% -- --
Average Coupon 5.2% 5.5% 5.5%
Average Maturity 3.1 years 3.0 years 13.8 years
Average Quality AA AA+ AA+
Average Duration 2.8 years 2.6 years 7.4 years
Expense Ratio 0.18% -- --
Cash Investments 0.5% -- --
-----------------------------------------------------------------------------
---------------------------
DISTRIBUTION BY
CREDIT QUALITY
(% OF PORTFOLIO)
---------------------------
AAA 56.2%
AA 23.3
A 8.7
BBB 10.0
BB 1.8
B 0.0
Not Rated 0.0
---------------------------
Total 100.0%
---------------------------
------------------------------
DISTRIBUTION BY MATURITY
(% OF PORTFOLIO)
Under 1 Year 12.1%
1-3 Years 38.1
3-5 Years 36.7
Over 5 Years 13.1
------------------------------
Total 100.0%
------------------------------
VOLATILITY MEASURES
LEHMAN
FUND BEST FIT* FUND INDEX**
--------------------------------------------------------------
R-Squared 0.95 1.00 0.84 1.00
Beta 1.08 1.00 0.40 1.00
--------------------------------------------------------------
-------------------------------------
LARGEST STATE CONCENTRATIONS
(% OF TOTAL NET ASSETS)
Texas 13.3%
New York 10.1
Illinois 6.6
Michigan 6.3
Colorado 5.0
Ohio 4.6
Pennsylvania 4.5
Washington 4.4
Georgia 3.9
Hawaii 3.4
-------------------------------------
Top Ten 62.1%
-------------------------------------
-----------------------------
INVESTMENT FOCUS
[GRID APPEARS HERE]
CREDIT QUALITY HIGH
AVERAGE MATURITY SHORT
-----------------------------
*Lehman 3 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
12
<PAGE>
FUND PROFILE As of October 31, 2000
for Intermediate-Term Tax-Exempt Fund
This Profile provides a snapshot of the fund's characteristics, compared where
appropriate to both an unmanaged index that we consider a "best fit" for the
fund and a broad market index. Key terms are defined on page 17.
-------------------------------------------------------------------
FINANCIAL ATTRIBUTES
LEHMAN
FUND BEST FIT* INDEX**
-------------------------------------------------------------------
Number of Issues 983 4,131 39,195
Yield 4.7% 4.7% 5.1%
Yield to Maturity 4.7% -- --
Average Coupon 5.5% 5.4% 5.5%
Average Maturity 6.8 years 7.0 years 13.8 years
Average Quality AA+ AA+ AA+
Average Duration 5.3 years 5.2 years 7.4 years
Expense Ratio 0.18% -- --
Cash Investments 0.5% -- --
-------------------------------------------------------------------
------------------------------
DISTRIBUTION BY CREDIT QUALITY
(% OF PORTFOLIO)
AAA 64.0%
AA 25.9
A 3.1
BBB 5.9
BB 0.7
B 0.0
Not Rated 0.4
------------------------------
Total 100.0%
------------------------------
------------------------------
DISTRIBUTION BY MATURITY
(% OF PORTFOLIO)
Under 1 Year 9.1%
1-5 Years 22.3
5-10 Years 54.8
10-20 Years 13.0
20-30 Years 0.8
Over 30 Years 0.0
------------------------------
Total 100.0%
------------------------------
-------------------------------------------------------------------
VOLATILITY MEASURES
LEHMAN
FUND BEST FIT* FUND INDEX**
-------------------------------------------------------------------
R-Squared 0.95 1.00 0.94 1.00
Beta 1.01 1.00 0.83 1.00
-------------------------------------------------------------------
----------------------------------
LARGEST STATE CONCENTRATIONS
(% of total net assets)
New York 13.6%
Texas 11.7
California 7.5
Massachusetts 7.4
New Jersey 6.9
Pennsylvania 6.2
Georgia 3.8
Florida 3.7
Michigan 3.7
Nevada 3.6
----------------------------------
Top Ten 68.1%
----------------------------------
------------------------------
INVESTMENT FOCUS
[GRID APPEARS HERE]
CREDIT QUALITY HIGH
AVERAGE MATURITY MEDIUM
------------------------------
*Lehman 7 Year Municipal Bond Index. [PICTURE OF COMPUTER]
**Lehman Municipal Bond Index. VISIT OUR WEBSITE
WWW.VANGUARD.COM
FOR REGULARLY UPDATED
FUND INFORMATION
13
<PAGE>
FUND PROFILE As of October 31, 2000
for Insured Long-Term Tax-Exempt Fund
This Profile provides a snapshot of the fund's characteristics, compared where
appropriate to both an unmanaged index that we consider a "best fit" for the
fund and a broad market index. Key terms are defined on page 17.
-------------------------------------------------------------------
FINANCIAL ATTRIBUTES
LEHMAN
FUND BEST FIT* INDEX**
-------------------------------------------------------------------
Number of Issues 269 7,256 39,195
Yield 5.0% 4.9% 5.1%
Yield to Maturity 5.0% -- --
Average Coupon 5.2% 5.4% 5.5%
Average Maturity 12.0 years 10.0 years 13.8 years
Average Quality AAA AA+ AA+
Average Duration 8.1 years 6.5 years 7.4 years
Expense Ratio 0.19% -- --
Cash Investments 0.0% -- --
-------------------------------------------------------------------
----------------------------------
DISTRIBUTION BY CREDIT QUALITY
(% OF PORTFOLIO)
AAA 96.1%
AA 3.9
A 0.0
BBB 0.0
BB 0.0
B 0.0
Not Rated 0.0
----------------------------------
Total 100.0%
----------------------------------
----------------------------------
DISTRIBUTION BY MATURITY
(% OF PORTFOLIO)
Under 1 Year 8.6%
1-5 Years 8.1
5-10 Years 31.2
10-20 Years 32.4
20-30 Years 19.6
Over 30 Years 0.1
----------------------------------
Total 100.0%
----------------------------------
VOLATILITY MEASURES
LEHMAN
FUND BEST FIT* FUND INDEX**
-------------------------------------------------------------------
R-Squared 0.93 1.00 0.98 1.00
Beta 1.14 1.00 1.21 1.00
-------------------------------------------------------------------
----------------------------------
LARGEST STATE CONCENTRATIONS
(% OF TOTAL NET ASSETS)
Texas 10.2%
Florida 8.8
Pennsylvania 8.2
New Jersey 7.9
New York 7.2
California 6.0
Illinois 5.9
Colorado 4.7
Nebraska 4.6
Georgia 4.0
----------------------------------
Top Ten 67.5%
----------------------------------
-----------------------------
INVESTMENT FOCUS
[GRID APPEARS HERE]
CREDIT QUALITY HIGH
AVERAGE MATURITY LONG
-----------------------------
*Lehman 10 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
14
<PAGE>
FUND PROFILE As of October 31, 2000
for Long-Term Tax-Exempt Fund
This Profile provides a snapshot of the fund's characteristics, compared where
appropriate to both an unmanaged index that we consider a "best fit" for the
fund and a broad market index. Key terms are defined on page 17.
-------------------------------------------------------------------
FINANCIAL ATTRIBUTES
LEHMAN
FUND BEST FIT* INDEX**
-------------------------------------------------------------------
Number of Issues 211 7,256 39,195
Yield 5.1% 4.9% 5.1%
Yield to Maturity 5.2% -- --
Average Coupon 5.4% 5.4% 5.5%
Average Maturity 13.0 years 10.0 years 13.8 years
Average Quality AA+ AA+ AA+
Average Duration 8.4 years 6.5 years 7.4 years
Expense Ratio 0.19% -- --
Cash Investments 0.0% -- --
-------------------------------------------------------------------
----------------------------------
DISTRIBUTION BY CREDIT QUALITY
(% OF PORTFOLIO)
AAA 61.1%
AA 27.0
A 5.2
BBB 5.9
BB 0.0
B 0.0
Not Rated 0.8
----------------------------------
Total 100.0%
----------------------------------
----------------------------------
DISTRIBUTION BY MATURITY
(% OF PORTFOLIO)
Under 1 Year 8.6%
1-5 Years 7.6
5-10 Years 26.0
10-20 Years 41.8
20-30 Years 14.1
Over 30 Years 1.9
----------------------------------
Total 100.0%
----------------------------------
-------------------------------------------------------------------------
VOLATILITY MEASURES
LEHMAN
FUND BEST FIT* FUND INDEX**
-------------------------------------------------------------------------
R-Squared 0.90 1.00 0.97 1.00
Beta 1.10 1.00 1.18 1.00
-------------------------------------------------------------------------
--------------------------------------
LARGEST STATE CONCENTRATIONS
(% OF TOTAL NET ASSETS)
Texas 13.2%
New York 10.5
California 8.6
Massachusetts 7.7
Pennsylvania 7.3
Illinois 5.8
Georgia 4.8
New Jersey 3.8
Florida 3.6
Michigan 3.0
--------------------------------------
Top Ten 68.3%
--------------------------------------
-------------------------------
INVESTMENT FOCUS
[GRID APPEARS HERE]
CREDIT QUALITY HIGH
AVERAGE MATURITY LONG
-------------------------------
*Lehman 10 Year Municipal Bond Index.
**Lehman Municipal Bond Index. [PICTURE OF COMPUTER]
VISIT OUR WEBSITE
WWW.VANGUARD.COM
FOR REGULARLY UPDATED
FUND INFORMATION
15
<PAGE>
FUND PROFILE As of October 31, 2000
for High-Yield Tax-Exempt Fund
This Profile provides a snapshot of the fund's characteristics, compared where
appropriate to an unmanaged index. Key terms are defined on page 17.
------------------------------------------------------
FINANCIAL ATTRIBUTES
LEHMAN
FUND INDEX*
------------------------------------------------------
Number of Issues 331 39,195
Yield 5.5% 5.1%
Yield to Maturity 5.7% --
Average Coupon 5.4% 5.5%
Average Maturity 12.6 years 13.8 years
Average Quality A AA+
Average Duration 7.9 years 7.4 years
Expense Ratio 0.19% --
Cash Investments 0.0% --
------------------------------------------------------
-------------------------------
DISTRIBUTION BY CREDIT QUALITY
(% OF PORTFOLIO)
AAA 37.2%
AA 9.7
A 10.8
BBB 25.6
BB 6.2
B 0.5
Not Rated 10.0
-------------------------------
Total 100.0%
-------------------------------
-------------------------------
DISTRIBUTION BY MATURITY
(% OF PORTFOLIO)
Under 1 Year 4.1%
1-5 Years 15.4
5-10 Years 28.5
10-20 Years 30.9
20-30 Years 16.5
Over 30 Years 4.6
-------------------------------
Total 100.0%
-------------------------------
------------------------------------------------------
VOLATILITY MEASURES
LEHMAN
FUND INDEX*
------------------------------------------------------
R-Squared 0.97 1.00
Beta 1.08 1.00
------------------------------------------------------
-------------------------------
LARGEST STATE CONCENTRATIONS
(% OF TOTAL NET ASSETS)
California 9.8%
New York 9.5
Pennsylvania 9.5
Texas 7.7
Massachusetts 6.2
New Jersey 5.3
Florida 3.6
Georgia 3.4
Michigan 3.4
Illinois 3.3
-------------------------------
Top Ten 61.7%
-------------------------------
-------------------------------
INVESTMENT FOCUS
[GRID APPEARS HERE]
CREDIT QUALITY MEDIUM
AVERAGE MATURITY LONG
-------------------------------
*Lehman Municipal Bond Index.
[PICTURE OF COMPUTER]
VISIT OUR WEBSITE
WWW.VANGUARD.COM
FOR REGULARLY UPDATED
FUND INFORMATION
16
<PAGE>
GLOSSARY
of Investment Terms
AVERAGE COUPON. The average interest rate paid on the securities held by a fund.
It is expressed as a percentage of face value.
--------------------------------------------------------------------------------
AVERAGE DURATION. An estimate of how much a bond fund's share price will
fluctuate in response to a change in interest rates. To see how the price could
shift, multiply the fund's duration by the change in rates. If interest rates
rise by one percentage point, the share price of a fund with an average duration
of five years would decline by about 5%. If rates decrease by a percentage
point, the fund's share price would rise by 5%.
--------------------------------------------------------------------------------
AVERAGE MATURITY. The average length of time until bonds held by a fund reach
maturity (or are called) and are repaid. In general, the longer the average
maturity, the more a fund's share price will fluctuate in response to changes in
market interest rates.
--------------------------------------------------------------------------------
AVERAGE WEIGHTED MATURITY. The average length of time until securities held by a
fund reach maturity (or are called) and are repaid. In general, the longer the
average weighted maturity, the more a fund's share price will fluctuate in
response to changes in market interest rates.
--------------------------------------------------------------------------------
BETA. A measure of the magnitude of a fund's past share-price fluctuations in
relation to the ups and downs of the fund's "best fit" index benchmark and an
overall market index. Each index is assigned a beta of 1.00. Compared with a
given index, a fund with a beta of 1.20 would have seen its share price rise or
fall by 12% when the index rose or fell by 10%.
--------------------------------------------------------------------------------
CASH INVESTMENTS. The percentage of a fund's net assets invested in "cash
equivalents"--highly liquid, short-term, interest-bearing securities. This
figure does not include cash invested in futures contracts to simulate bond
investment.
--------------------------------------------------------------------------------
DISTRIBUTION BY MATURITY. An indicator of interest-rate risk. In general, the
higher the concentration of longer-maturity issues, the more a fund's share
price will fluctuate in response to changes in interest rates.
--------------------------------------------------------------------------------
EXPENSE RATIO. The percentage of a fund's average net assets used to pay its
annual administrative and advisory expenses. These expenses directly reduce
returns to investors.
--------------------------------------------------------------------------------
LARGEST STATE CONCENTRATIONS. An indicator of diversification. The less
concentrated a fund's holdings of bonds, the less the fund will be hurt by any
financial problems in a single state or region.
--------------------------------------------------------------------------------
R-SQUARED. A measure of how much of a fund's past returns can be explained by
the returns from the market in general, as measured by the fund's "best fit"
index benchmark and by an overall market index. If a fund's total returns were
precisely synchronized with an index's returns, its R-squared would be 1.00. If
the fund's returns bore no relationship to the index's returns, its R-squared
would be 0.
--------------------------------------------------------------------------------
YIELD. A snapshot of a fund's interest income. The yield, expressed as a
percentage of the fund's net asset value, is based on income earned over the
past 30 days (7 days for money market funds) and is annualized, or projected
forward for the coming year.
--------------------------------------------------------------------------------
YIELD TO MATURITY. The rate of return an investor would receive if the
securities held by a fund were held to their maturity dates.
--------------------------------------------------------------------------------
17
<PAGE>
PERFORMANCE SUMMARY
for Tax-Exempt Money Market Fund
All of the data on this page represent past performance, which cannot be used to
predict future returns that may be achieved by the fund. An investment in a
money market fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the fund seeks to preserve
the value of your investment at $1 per share, it is possible to lose money by
investing in the fund.
<TABLE>
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURNS (%) OCTOBER 31, 1990-OCTOBER 31, 2000
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TAX-EXEMPT AVERAGE TAX-EXEMPT AVERAGE
MONEY MARKET FUND FUND* MONEY MARKET FUND FUND*
FISCAL TOTAL TOTAL FISCAL TOTAL TOTAL
YEAR RETURN RETURN YEAR RETURN RETURN
--------------------------------------------- -----------------------------------------------
1991 4.8% 4.5% 1996 3.4% 3.0%
1992 3.3 2.8 1997 3.5 3.0
1993 2.5 2.0 1998 3.4 3.0
1994 2.5 2.1 1999 3.1 2.6
1995 3.7 3.3 2000 3.9 3.4
--------------------------------------------- -----------------------------------------------
*Average Tax-Exempt Money Market Fund; SEC 7-Day Annualized Yield (10/31/2000): 4.16%.
derived from data provided by Lipper Inc.
See Financial Highlights table on page 31 for dividend information for the past five years.
---------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OCTOBER 31, 1990-OCTOBER 31, 2000
TAX-EXEMPT AVERAGE TAX-EXEMPT
MONEY MARKET FUND MONEY MARKET FUND
199010 10000 10000
199101 10140 10133
199104 10258 10239
199107 10370 10338
199110 10484 10446
199201 10588 10540
199204 10673 10611
199207 10753 10679
199210 10827 10742
199301 10897 10802
199304 10961 10850
199307 11026 10899
199310 11094 10954
199401 11158 11008
199404 11220 11056
199407 11290 11114
199410 11375 11187
199501 11477 11276
199504 11583 11366
199507 11693 11461
199510 11799 11555
199601 11907 11649
199604 12002 11729
199607 12102 11811
199610 12205 11900
199701 12309 11989
199704 12409 12073
199707 12522 12167
199710 12632 12262
199801 12744 12360
199804 12848 12447
199807 12960 12539
199810 13066 12630
199901 13166 12716
199904 13257 12789
199907 13361 12870
199910 13468 12958
200001 13587 13058
200004 13709 13161
200007 13851 13280
200010 13995 13400
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 2000 FINAL VALUE
------------------------------ OF A $10,000
1 YEAR 5 YEARS 10 YEARS INVESTMENT
--------------------------------------------------------------------------------
Tax-Exempt Money Market Fund 3.91% 3.47% 3.42% $13,995
Average Tax-Exempt Money
Market Fund* 3.41 3.01 2.97 13,400
--------------------------------------------------------------------------------
*Derived from data provided by Lipper Inc.
18
<PAGE>
PERFORMANCE SUMMARY
for Short-Term Tax-Exempt Fund
All of the data on this page represent past performance, which cannot be used to
predict future returns that may be achieved by the fund. Note, too, that both
share price and return can fluctuate. An investor's shares, when redeemed, could
be worth more or less than their original cost.
<TABLE>
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURNS (%) OCTOBER 31, 1990-OCTOBER 31, 2000
------------------------------------------------- -------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHORT-TERM TAX-EXEMPT FUND LEHMAN* SHORT-TERM TAX-EXEMPT FUND LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN YEAR RETURN RETURN RETURN RETURN
------------------------------------------------- -------------------------------------------------
1991 1.2% 5.7% 6.9% 9.4% 1996 -0.1% 4.0% 3.9% 4.5%
1992 0.8 4.5 5.3 7.8 1997 0.0 4.0 4.0 5.5
1993 0.3 3.9 4.2 6.6 1998 0.5 4.0 4.5 5.7
1994 -1.3 3.5 2.2 1.4 1999 -1.0 3.7 2.7 2.2
1995 1.2 4.1 5.3 8.0 2000 0.1 4.1 4.2 4.9
------------------------------------------------- -------------------------------------------------
*Lehman 3 Year Municipal Bond Index.
See Financial Highlights table on page 32 for dividend and capital gains information for the past
five years.
----------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OCTOBER 31, 1990-OCTOBER 31, 2000
SHORT-TERM TAX AVERAGE ADJUSTED LEHMAN 3 YEAR LEHMAN
-EXEMPT FUND SHORT MUNICIPAL MUNICIPAL MUNICIPAL
DEBT FUND BOND INDEX BOND INDEX
199010 10000 10000 10000 10000
199101 10219 10212 10302 10383
199104 10381 10334 10501 10617
199107 10511 10457 10662 10831
199110 10687 10695 10936 11216
199201 10903 10874 11269 11515
199204 10976 10946 11331 11626
199207 11208 11217 11791 12319
199210 11258 11315 11787 12157
199301 11425 11437 12031 12647
199304 11545 11565 12254 13096
199307 11600 11629 12372 13407
199310 11726 11801 12568 13869
199401 11854 11942 12786 14197
199404 11826 11843 12588 13379
199407 11928 11945 12755 13663
199410 11984 12018 12738 13269
199501 12085 12101 12876 13696
199504 12281 12273 13174 14274
199507 12484 12491 13550 14740
199510 12616 12670 13758 15239
199601 12792 12851 14012 15759
199604 12831 12830 13999 15409
199607 12964 12948 14174 15712
199610 13107 13143 14378 16066
199701 13230 13297 14582 16321
199704 13313 13327 14643 16388
199707 13511 13519 15025 17278
199710 13637 13690 15167 17430
199801 13796 13874 15416 17972
199804 13884 13909 15454 17913
199807 14049 14048 15706 18314
199810 14248 14307 16033 18829
199901 14390 14469 16259 19168
199904 14463 14497 16343 19158
199907 14533 14523 16301 18842
199910 14631 14698 16381 18495
200001 14725 14731 16459 18473
200004 14860 14809 16600 18983
200007 15075 15037 16963 19655
200010 15251 15307 17189 20121
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 2000 FINAL VALUE
------------------------------ OF A $10,000
1 YEAR 5 YEARS 10 YEARS INVESTMENT
--------------------------------------------------------------------------------
Short-Term Tax-Exempt Fund 4.24% 3.87% 4.31% $15,251
Average Adjusted Short
Municipal Debt Fund* 4.15 3.85 4.35 15,307
Lehman 3 Year Municipal
Bond Index 4.93 4.55 5.57 17,189
Lehman Municipal Bond Index 8.51 5.71 7.24 20,121
--------------------------------------------------------------------------------
*Derived from data provided by Lipper Inc.; adjusted to exclude funds with a
dollar-weighted average maturity greater than two years as of September 30,
2000.
19
<PAGE>
PERFORMANCE SUMMARY
for Limited-Term Tax-Exempt Fund
All of the data on this page represent past performance, which cannot be used to
predict future returns that may be achieved by the fund. Note, too, that both
share price and return can fluctuate widely. An investor's shares, when
redeemed, could be worth more or less than their original cost.
<TABLE>
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURNS (%) OCTOBER 31, 1990-OCTOBER 31, 2000
----------------------------------------------------------------------------------------------------
LIMITED-TERM TAX-EXEMPT FUND LEHMAN* LIMITED-TERM TAX-EXEMPT FUND LEHMAN*
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FISCAL CAPITAL INCOME TOTAL TOTAL FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN YEAR RETURN RETURN RETURN RETURN
------------------------------------------------ -------------------------------------------------
1991 2.8% 6.1% 8.9% 9.4% 1996 -0.2% 4.6% 4.4% 4.5%
1992 1.7 5.3 7.0 7.8 1997 0.5 4.5 5.0 5.5
1993 2.4 4.6 7.0 6.6 1998 1.0 4.4 5.4 5.7
1994 -3.1 4.2 1.1 1.4 1999 -2.4 4.2 1.8 2.2
1995 2.5 4.7 7.2 8.0 2000 0.5 4.5 5.0 4.9
------------------------------------------------ -------------------------------------------------
*Lehman 3 Year Municipal Bond Index.
See Financial Highlights table on page 32 for dividend information for the past
five years.
----------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OCTOBER 31, 1990-OCTOBER 31, 2000
LIMITED-TERM AVERAGE 1-5 LEHMAN 3 YEAR LEHMAN
TAX-EXEMPT FUND YEAR MUNICIPAL MUNICIPAL MUNICIPAL
FUND BOND INDEX BOND INDEX
199010 10000 10000 10000 10000
199101 10279 10233 10302 10383
199104 10481 10419 10501 10617
199107 10631 10560 10662 10831
199110 10894 10774 10936 11216
199201 11180 11028 11269 11515
199204 11234 11127 11331 11626
199207 11633 11476 11791 12319
199210 11652 11478 11787 12157
199301 11932 11764 12031 12647
199304 12132 12003 12254 13096
199307 12231 12086 12372 13407
199310 12466 12329 12568 13869
199401 12669 12474 12786 14197
199404 12487 12295 12588 13379
199407 12632 12388 12755 13663
199410 12602 12390 12738 13269
199501 12720 12468 12876 13696
199504 13034 12759 13174 14274
199507 13334 12992 13550 14740
199510 13513 13176 13758 15239
199601 13782 13375 14012 15759
199604 13729 13395 13999 15409
199607 13898 13502 14174 15712
199610 14105 13682 14378 16066
199701 14278 13815 14582 16321
199704 14302 13932 14643 16388
199707 14681 14220 15025 17278
199710 14815 14347 15167 17430
199801 15059 14533 15416 17972
199804 15075 14633 15454 17913
199807 15325 14786 15706 18314
199810 15618 15055 16033 18829
199901 15858 15203 16259 19168
199904 15905 15335 16343 19158
199907 15868 15221 16301 18842
199910 15905 15232 16381 18495
200001 15959 15230 16459 18473
200004 16105 15458 16600 18983
200007 16474 15696 16963 19655
200010 16706 15899 17189 20121
------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 2000 FINAL VALUE
------------------------------ OF A $10,000
1 YEAR 5 YEARS 10 YEARS INVESTMENT
------------------------------------------------------------------------------
Limited-Term Tax-Exempt Fund 5.04% 4.33% 5.27% $16,706
Average 1-5 Year Municipal
Fund* 4.38 3.83 4.75 15,899
Lehman 3 Year Municipal
Bond Index 4.93 4.55 5.57 17,189
Lehman Municipal Bond Index 8.51 5.71 7.24 20,121
------------------------------------------------------------------------------
*Derived from data provided by Lipper Inc.
------------------------------------------------------------------------------
20
<PAGE>
PERFORMANCE SUMMARY
for Intermediate-Term Tax-Exempt Fund
All of the data on this page represent past performance, which cannot be used to
predict future returns that may be achieved by the fund. Note, too, that both
share price and return can fluctuate widely. An investor's shares, when
redeemed, could be worth more or less than their original cost.
<TABLE>
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURNS (%) OCTOBER 31, 1990-OCTOBER 31, 2000
INTERMEDIATE-TERM TAX-EXEMPT FUND LEHMAN* INTERMEDIATE-TERM TAX-EXEMPT FUND LEHMAN*
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FISCAL CAPITAL INCOME TOTAL TOTAL FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN YEAR RETURN RETURN RETURN RETURN
--------------------------------------------------- -----------------------------------------------
1991 5.6% 7.0% 12.6% 11.2% 1996 -0.3% 5.2% 4.9% 4.7%
1992 1.2 6.0 7.2 8.2 1997 1.3 5.3 6.6 7.4
1993 8.4 5.9 14.3 12.0 1998 1.7 5.1 6.8 7.4
1994 -6.5 5.0 -1.5 -1.9 1999 -5.2 4.8 -0.4 0.0
1995 6.3 5.8 12.1 12.3 2000 2.0 5.3 7.3 6.8
--------------------------------------------------- -----------------------------------------------
*Lehman 7 Year Municipal Bond Index.
See Financial Highlights table on page 33 for dividend and capital gains
information for the past five years.
----------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OCTOBER 31, 1990-OCTOBER 31, 2000
INTERMEDIATE-TERM AVERAGE LEHMAN 7 YEAR LEHMAN
TAX-EXEMPT FUND INTERMEDIATE MUNICIPAL MUNICIPAL
MUNICIPAL FUND BOND INDEX BOND INDEX
199010 10000 10000 10000 10000
199101 10407 10315 10360 10383
199104 10671 10520 10578 10617
199107 10869 10679 10732 10831
199110 11256 11014 11117 11216
199201 11498 11289 11418 11515
199204 11610 11352 11482 11626
199207 12351 11961 12136 12319
199210 12070 11820 12029 12157
199301 12659 12265 12488 12647
199304 13084 12597 12780 13096
199307 13319 12819 13054 13407
199310 13795 13256 13468 13869
199401 14090 13519 13737 14197
199404 13592 12926 13177 13379
199407 13846 13124 13406 13663
199410 13592 12926 13213 13269
199501 13961 13161 13465 13696
199504 14422 13602 13947 14274
199507 14873 13969 14487 14740
199510 15238 14337 14842 15239
199601 15687 14688 15234 15759
199604 15434 14465 15004 15409
199607 15682 14652 15221 15712
199610 15979 14959 15532 16066
199701 16214 15139 15802 16321
199704 16254 15184 15807 16388
199707 16929 15815 16532 17278
199710 17027 15949 16686 17430
199801 17463 16324 17131 17972
199804 17385 16267 17046 17913
199807 17749 16543 17401 18314
199810 18182 16991 17919 18829
199901 18549 17253 18272 19168
199904 18505 17215 18204 19158
199907 18247 16915 17971 18842
199910 18108 16741 17921 18495
200001 18139 16703 17940 18473
200004 18483 17014 18198 18983
200007 19086 17450 18795 19655
200010 19427 17780 19144 20121
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 2000 FINAL VALUE
------------------------------ OF A $10,000
1 YEAR 5 YEARS 10 YEARS INVESTMENT
--------------------------------------------------------------------------------
Intermediate-Term Tax-Exempt
Fund 7.28% 4.98% 6.87% $19,427
Average Intermediate Municipal
Fund* 6.21 4.40 5.92 17,780
Lehman 7 Year Municipal Bond
Index 6.83 5.22 6.71 19,144
Lehman Municipal Bond Index 8.51 5.71 7.24 20,121
--------------------------------------------------------------------------------
*Derived from data provided by Lipper Inc.
--------------------------------------------------------------------------------
21
<PAGE>
PERFORMANCE SUMMARY
for Insured Long-Term Tax-Exempt Fund
All of the data on this page represent past performance, which cannot be used to
predict future returns that may be achieved by the fund. Note, too, that both
share price and return can fluctuate widely. An investor's shares, when
redeemed, could be worth more or less than their original cost.
<TABLE>
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURNS (%) OCTOBER 31, 1990-OCTOBER 31, 2000
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------------------- -------------------------------------------
INSURED LONG-TERM TAX-EXEMPT FUND LEHMAN* INSURED LONG-TERM TAX-EXEMPT FUND LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN YEAR RETURN RETURN RETURN RETURN
----------------------------------------------------- -------------------------------------------
1991 6.0% 7.2% 13.2% 12.1% 1996 0.7% 5.6% 6.3% 5.0%
1992 0.2 6.5 6.7 8.2 1997 1.9 5.7 7.6 8.7
1993 10.7 6.4 17.1 14.7 1998 2.4 5.5 7.9 8.3
1994 -10.8 5.2 -5.6 -3.2 1999 -7.7 5.0 -2.7 -1.2
1995 9.5 6.4 15.9 14.8 2000 3.8 5.9 9.7 8.2
----------------------------------------------------- -------------------------------------------
*Lehman 10 Year Municipal Bond Index.
See Financial Highlights table on page 33 for dividend and capital gains
information for the past five years.
----------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OCTOBER 31, 1990-OCTOBER 31, 2000
INSURED LONG-TERM AVERAGE INSURED LEHMAN 10 YEAR LEHMAN
TAX-EXEMPT FUND MUNICIPAL FUND MUNICIPAL MUNICIPAL
BOND INDEX BOND INDEX
199010 10000 10000 10000 10000
199101 10496 10417 10397 10383
199104 10696 10638 10625 10617
199107 10867 10833 10804 10831
199110 11324 11192 11209 11216
199201 11577 11471 11491 11515
199204 11684 11572 11565 11626
199207 12624 12341 12293 12319
199210 12087 11990 12124 12157
199301 12820 12579 12702 12647
199304 13381 13057 13098 13097
199307 13582 13311 13436 13407
199310 14154 13779 13905 13869
199401 14500 14088 14258 14197
199404 13558 13158 13484 13379
199407 13940 13423 13786 13663
199410 13365 12911 13453 13269
199501 14027 13411 13785 13696
199504 14591 13988 14384 14274
199507 14993 14295 14964 14740
199510 15491 14801 15440 15239
199601 16161 15370 15903 15758
199604 15666 14881 15585 15409
199607 16030 15160 15839 15713
199610 16463 15538 16205 16108
199701 16666 15687 16523 16363
199704 16729 15736 16576 16430
199707 17670 16607 17474 17323
199710 17710 16685 17617 17475
199801 18307 17202 18178 18017
199804 18148 17068 18063 17958
199807 18596 17415 18468 18361
199810 19106 17884 19077 18877
199901 19504 18157 19487 19215
199904 19486 18100 19355 19207
199907 19055 17623 18989 18890
199910 18583 17094 18848 18543
200001 18556 17004 18879 18518
200004 19235 17536 19300 19030
200007 19965 18097 19979 19704
200010 20382 18463 20400 20121
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 2000 FINAL VALUE
------------------------------ OF A $10,000
1 YEAR 5 YEARS 10 YEARS INVESTMENT
--------------------------------------------------------------------------------
Insured Long-Term Tax-Exempt Fund 9.68% 5.64% 7.38% $20,382
Average Insured Municipal Fund* 8.01 4.52 6.32 18,463
Lehman 10 Year Municipal Bond Index 8.24 5.73 7.39 20,400
Lehman Municipal Bond Index 8.51 5.71 7.24 20,121
--------------------------------------------------------------------------------
*Derived from data provided by Lipper Inc.
--------------------------------------------------------------------------------
22
<PAGE>
PERFORMANCE SUMMARY
for Long-Term Tax-Exempt Fund
All of the data on this page represent past performance, which cannot be used to
predict future returns that may be achieved by the fund. Note, too, that both
share price and return can fluctuate widely. An investor's shares, when
redeemed, could be worth more or less than their original cost.
<TABLE>
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURNS (%) OCTOBER 31, 1990-OCTOBER 31, 2000
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------ ------------------------------------------------
LONG-TERM TAX-EXEMPT FUND LEHMAN* LONG-TERM TAX-EXEMPT FUND LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN YEAR RETURN RETURN RETURN RETURN
------------------------------------------------ ------------------------------------------------
1991 6.7% 7.6% 14.3% 12.1% 1996 1.1% 5.6% 6.7% 5.0%
1992 0.8 6.7 7.5 8.2 1997 2.6 5.6 8.2 8.7
1993 10.5 6.4 16.9 14.7 1998 2.4 5.4 7.8 8.3
1994 -10.7 5.2 -5.5 -3.2 1999 -8.3 4.8 -3.5 -1.2
1995 9.5 6.5 16.0 14.8 2000 3.8 5.8 9.6 8.2
----------------------------------------------------------------------------------------------------
*Lehman 10 Year Municipal Bond Index.
See Financial Highlights table on page 34 for dividend and capital gains
information for the past five years.
----------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OCTOBER 31, 1990-OCTOBER 31, 2000
LONG-TERM AVERAGE GENERAL LEHMAN 10 YEAR LEHMAN
TAX-EXEMPT FUND MUNICIPAL FUND MUNICIPAL MUNICIPAL
BOND INDEX BOND INDEX
199010 10000 10000 10000 10000
199101 10548 10401 10383 10397
199104 10780 10636 10617 10625
199107 10982 10853 10831 10804
199110 11433 11224 11216 11209
199201 11725 11492 11515 11491
199204 11851 11619 11626 11565
199207 12823 12411 12319 12293
199210 12296 12049 12157 12124
199301 13012 12637 12647 12702
199304 13633 13116 13097 13098
199307 13812 13413 13407 13436
199310 14379 13911 13869 13905
199401 14709 14194 14197 14258
199404 13811 13258 13379 13484
199407 14183 13521 13663 13786
199410 13587 13095 13269 13453
199501 14215 13511 13696 13785
199504 14798 14036 14274 14384
199507 15265 14394 14740 14964
199510 15759 14893 15239 15440
199601 16447 15407 15758 15903
199604 16008 14974 15409 15585
199607 16395 15243 15713 15839
199610 16816 15654 16108 16205
199701 17034 15837 16363 16523
199704 17136 15892 16430 16576
199707 18105 16779 17323 17474
199710 18200 16926 17475 17617
199801 18813 17440 18017 18178
199804 18682 17325 17958 18063
199807 19131 17679 18361 18468
199810 19615 18131 18877 19077
199901 19980 18397 19215 19487
199904 19958 18327 19207 19355
199907 19515 17884 18890 18989
199910 18938 17373 18543 18848
200001 18871 17212 18518 18879
200004 19598 17720 19030 19300
200007 20307 18272 19704 19979
200010 20752 18651 20121 20400
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 2000 FINAL VALUE
------------------------------ OF A $10,000
1 YEAR 5 YEARS 10 YEARS INVESTMENT
--------------------------------------------------------------------------------
Long-Term Tax-Exempt Fund 9.58% 5.66% 7.57% $20,752
Average General Municipal Fund* 7.36 4.60 6.43 18,651
Lehman 10 Year Municipal Bond Index 8.24 5.73 7.39 20,400
Lehman Municipal Bond Index 8.51 5.71 7.24 20,121
--------------------------------------------------------------------------------
*Derived from data provided by Lipper Inc.
23
<PAGE>
PERFORMANCE SUMMARY
for High-Yield Tax-Exempt Fund
All of the data on this page represent past performance, which cannot be used to
predict future returns that may be achieved by the fund. Note, too, that both
share price and return can fluctuate widely. An investor's shares, when
redeemed, could be worth more or less than their original cost.
<TABLE>
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURNS (%) OCTOBER 31, 1990-OCTOBER 31, 2000
----------------------------------------------- -------------------------------------------------
HIGH-YIELD TAX-EXEMPT FUND LEHMAN* HIGH-YIELD TAX-EXEMPT FUND LEHMAN*
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FISCAL CAPITAL INCOME TOTAL TOTAL FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN YEAR RETURN RETURN RETURN RETURN
----------------------------------------------- -------------------------------------------------
1991 7.2% 8.0% 15.2% 12.2% 1996 0.3% 5.7% 6.0% 5.7%
1992 0.6 7.1 7.7 8.4 1997 2.5 5.9 8.4 8.5
1993 10.0 6.8 16.8 14.1 1998 2.6 5.6 8.2 8.0
1994 -10.5 5.5 -5.0 -4.3 1999 -7.8 5.0 -2.8 -1.8
1995 9.0 6.8 15.8 14.8 2000 1.8 6.0 7.8 8.5
----------------------------------------------------------------------------------------------------
*Lehman Municipal Bond Index.
See Financial Highlights table on page 34 for dividend and capital gains
information for the past five years.
----------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OCTOBER 31, 1990-OCTOBER 31, 2000
HIGH-YIELD AVERAGE HIGH LEHMAN
TAX-EXEMPT YIELD MUNICIPAL MUNICIPAL
FUND FUND BOND INDEX
199010 10000 10000 10000 10000
199101 10492 10270 10383 10383
199104 10776 10521 10617 10617
199107 11028 10773 10831 10831
199110 11523 11096 11216 11216
199201 11793 11370 11515 11515
199204 11951 11535 11626 11626
199207 12920 12206 12319 12319
199210 12410 11929 12157 12157
199301 13138 12475 12647 12647
199304 13735 12884 13097 13096
199307 13942 13181 13407 13407
199310 14496 13608 13869 13869
199401 14815 13926 14197 14197
199404 14015 13155 13379 13379
199407 14349 13416 13663 13663
199410 13766 13073 13269 13269
199501 14363 13456 13696 13696
199504 14973 13952 14274 14274
199507 15448 14316 14740 14740
199510 15947 14736 15239 15239
199601 16495 15274 15758 15759
199604 16102 14916 15409 15409
199607 16489 15179 15713 15712
199610 16909 15582 16108 16066
199701 17152 15875 16363 16321
199704 17224 15999 16430 16388
199707 18162 16773 17323 17278
199710 18322 17028 17475 17430
199801 18937 17613 18017 17972
199804 18866 17613 17958 17913
199807 19329 17924 18361 18314
199810 19822 18221 18877 18829
199901 20195 18504 19215 19168
199904 20210 18541 19207 19158
199907 19811 18271 18890 18842
199910 19273 17682 18543 18495
200001 19054 17387 18518 18473
200004 19683 17712 19030 18983
200007 20347 18008 19704 19655
200010 20775 18230 20121 20121
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 2000 FINAL VALUE
------------------------------ OF A $10,000
1 YEAR 5 YEARS 10 YEARS INVESTMENT
--------------------------------------------------------------------------------
High-Yield Tax-Exempt Fund 7.79% 5.43% 7.59% $20,775
Average High Yield Municipal Fund* 3.10 4.35 6.19 18,230
Lehman Municipal Bond Index 8.51 5.71 7.24 20,121
--------------------------------------------------------------------------------
*Derived from data provided by Lipper Inc.
24
<PAGE>
FINANCIAL STATEMENTS
October 31, 2000
The Statements of Net Assets, integral parts of the Financial Statements for
each of the Vanguard Municipal Bond Funds, are included as an insert to this
report.
STATEMENT OF OPERATIONS
This Statement shows interest earned by each fund during the reporting period,
and details the operating expenses charged to the fund. These expenses directly
reduce the amount of investment income available to pay to shareholders as
tax-exempt income dividends. This Statement also shows any Net Gain (Loss)
realized on the sale of investments, and the increase or decrease in the
Unrealized Appreciation (Depreciation) on investments during the period. If a
fund invested in futures contracts during the period, the results of these
investments are shown separately.
<TABLE>
-----------------------------------------------------------------------------------------------------------------
TAX-EXEMPT SHORT-TERM LIMITED-TERM INTERMEDIATE-
MONEY MARKET TAX-EXEMPT TAX-EXEMPT TERM TAX-EXEMPT
FUND FUND FUND FUND
------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------
(000) (000) (000) (000)
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME
Interest $305,948 $81,953 $121,631 $422,371
------------------------------------------------------------------------------------------------------------------
Total Income 305,948 81,953 121,631 422,371
------------------------------------------------------------------------------------------------------------------
EXPENSES
The Vanguard Group--Note B
Investment Advisory Services 849 220 297 921
Management and Administrative 11,486 2,941 4,014 12,692
Marketing and Distribution 1,301 339 417 1,079
Custodian Fees 80 22 27 79
Auditing Fees 12 10 10 13
Shareholders' Reports 120 37 54 206
Trustees' Fees and Expenses 8 2 3 9
------------------------------------------------------------------------------------------------------------------
Total Expenses 13,856 3,571 4,822 14,999
Expenses Paid Indirectly--Note C (80) (41) (56) (285)
------------------------------------------------------------------------------------------------------------------
Net Expenses 13,776 3,530 4,766 14,714
------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 292,172 78,423 116,865 407,657
------------------------------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS)
Investment Securities Sold (405) (1,308) (5,221) (9,295)
Futures Contracts -- -- -- 4,068
------------------------------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS) (405) (1,308) (5,221) (5,227)
------------------------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION)
Investment Securities -- 4,338 18,287 170,731
Futures Contracts -- -- -- --
------------------------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) -- 4,338 18,287 170,731
------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $291,767 $81,453 $129,931 $573,161
==================================================================================================================
</TABLE>
25
<PAGE>
STATEMENT OF OPERATIONS (continued)
<TABLE>
---------------------------------------------------------------------------------------------
INSURED LONG-TERM LONG-TERM HIGH-YIELD
TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
FUND FUND FUND
---------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
---------------------------------------------------------------
(000) (000) (000)
<S> <C> <C> <C>
---------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Interest $123,306 $ 87,289 $168,171
---------------------------------------------------------------------------------------------
Total Income 123,306 87,289 168,171
---------------------------------------------------------------------------------------------
EXPENSES
The Vanguard Group--Note B
Investment Advisory Services 248 175 322
Management and Administrative 3,449 2,435 4,455
Marketing and Distribution 251 191 388
Custodian Fees 24 17 29
Auditing Fees 10 10 10
Shareholders' Reports 64 42 84
Trustees' Fees and Expenses 3 2 3
---------------------------------------------------------------------------------------------
Total Expenses 4,049 2,872 5,291
Expenses Paid Indirectly--Note C (91) (62) (138)
---------------------------------------------------------------------------------------------
Net Expenses 3,958 2,810 5,153
---------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 119,348 84,479 163,018
---------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS)
Investment Securities Sold 906 (15,009) (7,519)
Futures Contracts 1,327 1,498 1,994
---------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS) 2,233 (13,511) (5,525)
---------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION)
Investment Securities 80,012 71,058 57,263
Futures Contracts (86) 465 (157)
---------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) 79,926 71,523 57,106
---------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $201,507 $142,491 $214,599
=============================================================================================
</TABLE>
26
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
This Statement shows how each fund's total net assets changed during the two
most recent reporting periods. The Operations section summarizes information
detailed in the Statement of Operations. Because the fund distributes its income
to shareholders each day, the amounts of Distributions--Net Investment Income
generally equal the net income earned as shown under the Operations section. The
amounts of Distributions--Realized Capital Gain may not match the capital gains
shown in the Operations section, because distributions are determined on a tax
basis and may be made in a period different from the one in which the gains were
realized on the financial statements. The Capital Share Transactions section
shows the amount shareholders invested in the fund, either by purchasing shares
or by reinvesting distributions, and the amounts redeemed. The corresponding
numbers of Shares Issued and Redeemed are shown at the end of the Statement.
<TABLE>
---------------------------------------------------------------------------------------------------------------
TAX-EXEMPT SHORT-TERM
MONEY MARKET FUND TAX-EXEMPT FUND
----------------------- ---------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------
2000 1999 2000 1999
(000) (000) (000) (000)
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 292,172 $ 203,963 $ 78,423 $ 65,736
Realized Net Gain (Loss) (405) (124) (1,308) 495
Change in Unrealized Appreciation (Depreciation) -- -- 4,338 (19,834)
---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 291,767 203,839 81,453 46,397
---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income (292,172) (203,963) (78,423) (65,736)
Realized Capital Gain -- -- -- (624)
---------------------------------------------------------------------------------------------------------------
Total Distributions (292,172) (203,963) (78,423) (66,360)
---------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS1
Issued 9,102,948 8,274,792 1,272,945 1,121,980
Issued in Lieu of Cash Distributions 274,123 190,776 66,978 56,651
Redeemed (8,307,132) (7,566,794) (1,231,210) (919,627)
---------------------------------------------------------------------------------------------------------------
Net Increase from Capital Share Transactions 1,069,939 898,774 108,713 259,004
---------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) 1,069,534 898,650 111,743 239,041
---------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Year 7,144,411 6,245,761 1,892,704 1,653,663
---------------------------------------------------------------------------------------------------------------
End of Year $8,213,945 $7,144,411 $2,004,447 $1,892,704
===============================================================================================================
1Shares Issued (Redeemed)
Issued 9,102,948 8,274,792 82,375 72,029
Issued in Lieu of Cash Distributions 274,123 190,776 4,333 3,640
Redeemed (8,307,132) (7,566,794) (79,677) (59,043)
---------------------------------------------------------------------------------------------------------------
Net Increase in Shares Outstanding 1,069,939 898,774 7,031 16,626
===============================================================================================================
</TABLE>
27
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (continued)
<TABLE>
----------------------------------------------------------------------------------------------------------------
LIMITED-TERM INTERMEDIATE-TERM
TAX-EXEMPT FUND TAX-EXEMPT FUND
----------------------- ----------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------
2000 1999 2000 1999
(000) (000) (000) (000)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 116,865 $ 106,494 $ 407,657 $ 399,839
Realized Net Gain (Loss) (5,221) 149 (5,227) 14,245
Change in Unrealized Appreciation (Depreciation) 18,287 (63,567) 170,731 (454,039)
----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 129,931 43,076 573,161 (39,955)
----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income (116,865) (106,494) (407,657) (399,839)
Realized Capital Gain -- -- -- (20,547)
----------------------------------------------------------------------------------------------------------------
Total Distributions (116,865) (106,494) (407,657) (420,386)
----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS1
Issued 1,063,048 1,062,991 1,888,838 2,371,429
Issued in Lieu of Cash Distributions 91,680 83,769 302,374 317,269
Redeemed (969,982) (846,527) (2,031,917) (1,773,115)
----------------------------------------------------------------------------------------------------------------
Net Increase from Capital Share Transactions 184,746 300,233 159,295 915,583
----------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) 197,812 236,815 324,799 455,242
----------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Year 2,576,995 2,340,180 8,228,319 7,773,077
----------------------------------------------------------------------------------------------------------------
End of Year $2,774,807 $2,576,995 $8,553,118 $8,228,319
================================================================================================================
1Shares Issued (Redeemed)
Issued 100,668 98,675 147,103 178,445
Issued in Lieu of Cash Distributions 8,680 7,792 23,532 23,965
Redeemed (91,881) (78,694) (158,593) (134,015)
----------------------------------------------------------------------------------------------------------------
Net Increase in Shares Outstanding 17,467 27,773 12,042 68,395
================================================================================================================
</TABLE>
28
<PAGE>
<TABLE>
----------------------------------------------------------------------------------------------------------------
INSURED LONG-TERM LONG-TERM
TAX-EXEMPT FUND TAX-EXEMPT FUND
----------------------- ----------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------
2000 1999 2000 1999
(000) (000) (000) (000)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 119,348 $ 118,079 $ 84,479 $ 80,283
Realized Net Gain (Loss) 2,233 10,700 (13,511) 4,219
Change in Unrealized Appreciation (Depreciation) 79,926 (192,045) 71,523 (139,950)
----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 201,507 (63,266) 142,491 (55,448)
----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income (119,348) (118,079) (84,479) (80,283)
Realized Capital Gain -- (12,271) -- (15,575)
----------------------------------------------------------------------------------------------------------------
Total Distributions (119,348) (130,350) (84,479) (95,858)
----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS1
Issued 410,595 410,769 396,245 436,934
Issued in Lieu of Cash Distributions 74,152 83,680 56,437 66,604
Redeemed (427,323) (375,764) (389,599) (333,511)
----------------------------------------------------------------------------------------------------------------
Net Increase from Capital Share Transactions 57,424 118,685 63,083 170,027
----------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) 139,583 (74,931) 121,095 18,721
----------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Year 2,160,204 2,235,135 1,527,496 1,508,775
----------------------------------------------------------------------------------------------------------------
End of Year $2,299,787 $2,160,204 $1,648,591 $1,527,496
================================================================================================================
1Shares Issued (Redeemed)
Issued 34,669 33,075 37,936 39,639
Issued in Lieu of Cash Distributions 6,255 6,763 5,386 6,046
Redeemed (36,304) (30,568) (37,391) (30,394)
----------------------------------------------------------------------------------------------------------------
Net Increase in Shares Outstanding 4,620 9,270 5,931 15,291
================================================================================================================
</TABLE>
29
<PAGE>
--------------------------------------------------------------------------------
HIGH-YIELD TAX-EXEMPT FUND
---------------------------
YEAR ENDED OCTOBER 31,
---------------------------
2000 1999
(000) (000)
--------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 163,018 $ 156,548
Realized Net Gain (Loss) (5,525) 1,471
Change in Unrealized Appreciation
(Depreciation) 57,106 (245,647)
--------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 214,599 (87,628)
--------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income (163,018) (156,548)
Realized Capital Gain -- (18,021)
--------------------------------------------------------------------------------
Total Distributions (163,018) (174,569)
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS1
Issued 853,520 1,018,305
Issued in Lieu of Cash Distributions 107,976 121,185
Redeemed (847,720) (714,278)
--------------------------------------------------------------------------------
Net Increase from Capital Share Transactions 113,776 425,212
--------------------------------------------------------------------------------
Total Increase (Decrease) 165,357 163,015
--------------------------------------------------------------------------------
NET ASSETS
Beginning of Year 2,867,364 2,704,349
--------------------------------------------------------------------------------
End of Year $3,032,721 $2,867,364
================================================================================
1Shares Issued (Redeemed)
Issued 84,367 94,318
Issued in Lieu of Cash Distributions 10,665 11,294
Redeemed (84,012) (67,058)
--------------------------------------------------------------------------------
Net Increase in Shares Outstanding 11,020 38,554
================================================================================
30
<PAGE>
FINANCIAL HIGHLIGHTS
This table summarizes each fund's investment results and distributions to
shareholders on a per-share basis. It also presents the fund's Total Return and
shows net investment income and expenses as percentages of average net assets.
These data will help you assess: the variability of the fund's net income and
total returns from year to year; the relative contributions of net income and
capital gains to the fund's total return; how much it costs to operate the fund;
and the extent to which the fund tends to distribute capital gains. The table
also shows the Portfolio Turnover Rate, a measure of trading activity. A
turnover rate of 100% means that the average security is held in the fund for
one year. Money market funds are not required to report a Portfolio Turnover
Rate.
<TABLE>
---------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET FUND
YEAR ENDED OCTOBER 31, YEAR ENDED AUGUST 31,
FOR A SHARE OUTSTANDING ------------------------- SEP. 1 TO ----------------------
THROUGHOUT EACH PERIOD 2000 1999 1998 OCT. 31, 1997 1997 1996
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .038 .030 .034 .006 .034 .034
Net Realized and Unrealized Gain (Loss)
on Investments -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .038 .030 .034 .006 .034 .034
---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.038) (.030) (.034) (.006) (.034) (.034)
Distributions from Realized Capital Gains -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
Total Distributions (.038) (.030) (.034) (.006) (.034) (.034)
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=====================================================================================================================
TOTAL RETURN 3.91% 3.08% 3.44% 0.59% 3.47% 3.48%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $8,214 $7,144 $6,246 $5,380 $5,345 $4,624
Ratio of Total Expenses to Average Net Assets 0.18% 0.18% 0.20% 0.18%* 0.19% 0.20%
Ratio of Net Investment Income to
Average Net Assets 3.84% 3.03% 3.37% 3.53%* 3.41% 3.42%
=====================================================================================================================
</TABLE>
*Annualized.
31
<PAGE>
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
---------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX-EXEMPT FUND
YEAR ENDED OCTOBER 31, YEAR ENDED AUGUST 31,
FOR A SHARE OUTSTANDING ------------------------- SEP. 1 TO ----------------------
THROUGHOUT EACH PERIOD 2000 1999 1998 OCT. 31, 1997 1997 1996
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $15.48 $15.65 $15.58 $15.57 $15.54 $15.59
---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .623 .578 .609 .103 .610 .609
Net Realized and Unrealized Gain (Loss)
on Investments .020 (.164) .076 .010 .034 (.050)
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .643 .414 .685 .113 .644 .559
---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.623) (.578) (.609) (.103) (.610) (.609)
Distributions from Realized Capital Gains -- (.006) (.006) -- (.004) --
---------------------------------------------------------------------------------------------------------------------
Total Distributions (.623) (.584) (.615) (.103) (.614) (.609)
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $15.50 $15.48 $15.65 $15.58 $15.57 $15.54
=====================================================================================================================
TOTAL RETURN 4.24% 2.69% 4.49% 0.73% 4.22% 3.64%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $2,004 $1,893 $1,654 $1,485 $1,464 $1,457
Ratio of Total Expenses to Average Net Assets 0.18% 0.18% 0.20% 0.18%* 0.19% 0.20%
Ratio of Net Investment Income to
Average Net Assets 4.03% 3.71% 3.90% 3.96%* 3.91% 3.90%
Portfolio Turnover Rate 45% 56% 36% 4% 34% 33%
=====================================================================================================================
</TABLE>
*Annualized.
<TABLE>
---------------------------------------------------------------------------------------------------------------------
LIMITED-TERM TAX-EXEMPT FUND
YEAR ENDED OCTOBER 31, YEAR ENDED AUGUST 31,
FOR A SHARE OUTSTANDING ------------------------- SEP. 1 TO ----------------------
THROUGHOUT EACH PERIOD 2000 1999 1998 OCT. 31, 1997 1997 1996
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.59 $10.85 $10.74 $10.71 $10.62 $10.71
---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .470 .457 .460 .078 .476 .483
Net Realized and Unrealized Gain (Loss)
on Investments .050 (.260) .110 .030 .090 (.090)
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .520 .197 .570 .108 .566 .393
---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.470) (.457) (.460) (.078) (.476) (.483)
Distributions from Realized Capital Gains -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
Total Distributions (.470) (.457) (.460) (.078) (.476) (.483)
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.64 $10.59 $10.85 $10.74 $10.71 $10.62
=====================================================================================================================
TOTAL RETURN 5.04% 1.83% 5.42% 1.01% 5.44% 3.73%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $2,775 $2,577 $2,340 $1,962 $1,929 $1,761
Ratio of Total Expenses to Average Net Assets 0.18% 0.18% 0.21% 0.18%* 0.19% 0.21%
Ratio of Net Investment Income to
Average Net Assets 4.45% 4.25% 4.27% 4.34%* 4.46% 4.51%
Portfolio Turnover Rate 32% 14% 35% 2% 28% 27%
=====================================================================================================================
</TABLE>
*Annualized.
32
<PAGE>
<TABLE>
---------------------------------------------------------------------------------------------------------------------
INTERMEDIATE-TERM TAX-EXEMPT FUND
YEAR ENDED OCTOBER 31, YEAR ENDED AUGUST 31,
FOR A SHARE OUTSTANDING ------------------------- SEP. 1 TO ----------------------
THROUGHOUT EACH PERIOD 2000 1999 1998 OCT. 31, 1997 1997 1996
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.79 $13.52 $13.35 $13.30 $13.04 $13.14
---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .646 .648 .661 .111 .669 .671
Net Realized and Unrealized Gain (Loss)
on Investments .260 (.695) .222 .050 .263 (.091)
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .906 (.047) .883 .161 .932 .580
---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.646) (.648) (.661) (.111) (.669) (.671)
Distributions from Realized Capital Gains -- (.035) (.052) -- (.003) (.009)
---------------------------------------------------------------------------------------------------------------------
Total Distributions (.646) (.683) (.713) (.111) (.672) (.680)
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.05 $12.79 $13.52 $13.35 $13.30 $13.04
=====================================================================================================================
TOTAL RETURN 7.28% -0.40% 6.78% 1.21% 7.31% 4.47%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $8,553 $8,228 $7,773 $6,770 $6,658 $5,927
Ratio of Total Expenses to Average Net Assets 0.18% 0.18% 0.21% 0.18%* 0.19% 0.20%
Ratio of Net Investment Income to
Average Net Assets 5.03% 4.83% 4.93% 4.99%* 5.07% 5.09%
Portfolio Turnover Rate 17% 17% 14% 1% 15% 14%
=====================================================================================================================
</TABLE>
*Annualized.
<TABLE>
---------------------------------------------------------------------------------------------------------------------
INSURED LONG-TERM TAX-EXEMPT FUND
YEAR ENDED OCTOBER 31, YEAR ENDED AUGUST 31,
FOR A SHARE OUTSTANDING ------------------------- SEP. 1 TO ----------------------
THROUGHOUT EACH PERIOD 2000 1999 1998 OCT. 31, 1997 1997 1996
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.69 $12.73 $12.51 $12.45 $12.14 $12.12
---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .649 .644 .658 .111 .674 .670
Net Realized and Unrealized Gain (Loss)
on Investments .450 (.971) .301 .060 .382 .020
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.099 (.327) .959 .171 1.056 .690
---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.649) (.644) (.658) (.111) (.674) (.670)
Distributions from Realized Capital Gains -- (.069) (.081) -- (.072) --
---------------------------------------------------------------------------------------------------------------------
Total Distributions (.649) (.713) (.739) (.111) (.746) (.670)
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.14 $11.69 $12.73 $12.51 $12.45 $12.14
=====================================================================================================================
TOTAL RETURN 9.68% -2.74% 7.88% 1.37% 8.93% 5.77%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $2,300 $2,160 $2,235 $2,043 $2,024 $1,936
Ratio of Total Expenses to Average Net Assets 0.19% 0.19% 0.20% 0.18%* 0.19% 0.20%
Ratio of Net Investment Income to
Average Net Assets 5.48% 5.20% 5.22% 5.32%* 5.47% 5.46%
Portfolio Turnover Rate 34% 17% 16% 1% 18% 18%
=====================================================================================================================
</TABLE>
*Annualized.
33
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
---------------------------------------------------------------------------------------------------------------------
LONG-TERM TAX-EXEMPT FUND
YEAR ENDED OCTOBER 31, YEAR ENDED AUGUST 31,
FOR A SHARE OUTSTANDING ------------------------- SEP. 1 TO ----------------------
THROUGHOUT EACH PERIOD 2000 1999 1998 OCT. 31, 1997 1997 1996
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.34 $11.39 $11.18 $11.11 $10.73 $10.68
---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .572 .565 .580 .098 .588 .591
Net Realized and Unrealized Gain (Loss)
on Investments .390 (.935) .268 .070 .403 .050
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .962 (.370) .848 .168 .991 .641
---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.572) (.565) (.580) (.098) (.588) (.591)
Distributions from Realized Capital Gains -- (.115) (.058) -- (.023) --
---------------------------------------------------------------------------------------------------------------------
Total Distributions (.572) (.680) (.638) (.098) (.611) (.591)
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.73 $10.34 $11.39 $11.18 $11.11 $10.73
=====================================================================================================================
TOTAL RETURN 9.58% -3.45% 7.78% 1.52% 9.46% 6.08%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,649 $1,527 $1,509 $1,249 $1,222 $1,110
Ratio of Total Expenses to Average Net Assets 0.19% 0.18% 0.21% 0.18%* 0.19% 0.20%
Ratio of Net Investment Income to
Average Net Assets 5.46% 5.13% 5.13% 5.28%* 5.37% 5.45%
Portfolio Turnover Rate 25% 15% 18% 1% 9% 26%
=====================================================================================================================
</TABLE>
*Annualized.
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
---------------------------------------------------------------------------------------------------------------------
HIGH-YIELD TAX-EXEMPT FUND
YEAR ENDED OCTOBER 31, YEAR ENDED AUGUST 31,
FOR A SHARE OUTSTANDING ------------------------- SEP. 1 TO ----------------------
THROUGHOUT EACH PERIOD 2000 1999 1998 OCT. 31, 1997 1997 1996
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.13 $11.06 $10.83 $10.76 $10.39 $10.43
---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .582 .571 .582 .106 .589 .594
Net Realized and Unrealized Gain (Loss)
on Investments .180 (.858) .282 .070 .370 (.040)
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .762 (.287) .864 .176 .959 .554
---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.582) (.571) (.582) (.106) (.589) (.594)
Distributions from Realized Capital Gains -- (.072) (.052) -- -- --
---------------------------------------------------------------------------------------------------------------------
Total Distributions (.582) (.643) (.634) (.106) (.589) (.594)
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.31 $10.13 $11.06 $10.83 $10.76 $10.39
=====================================================================================================================
TOTAL RETURN 7.79% -2.77% 8.19% 1.63% 9.45% 5.39%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $3,033 $2,867 $2,704 $2,256 $2,193 $1,985
Ratio of Total Expenses to Average Net Assets 0.19% 0.18% 0.20% 0.19%* 0.19% 0.20%
Ratio of Net Investment Income to
Average Net Assets 5.74% 5.33% 5.28% 6.08%* 5.56% 5.66%
Portfolio Turnover Rate 32% 22% 24% 3% 27% 19%
=====================================================================================================================
</TABLE>
*Annualized.
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Vanguard Municipal Bond Funds comprise the Tax-Exempt Money Market, Short-Term
Tax- Exempt, Limited-Term Tax-Exempt, Intermediate-Term Tax-Exempt, Insured
Long-Term Tax-Exempt, Long-Term Tax-Exempt, and High-Yield Tax-Exempt Funds,
each of which is registered under the Investment Company Act of 1940 as a
diversified open-end investment company, or mutual fund. Each fund invests in
debt instruments of many municipal issuers; the issuers' abilities to meet their
obligations may be affected by economic and political developments in a specific
state or region. Effective in 1997, each fund's fiscal year changed from August
31 to October 31.
A. The following significant accounting policies conform to generally accepted
accounting principles for U.S. mutual funds. The funds consistently follow such
policies in preparing their financial statements.
1. SECURITY VALUATION: Tax-Exempt Money Market Fund: Investment securities
are valued at amortized cost, which approximates market value. Other funds:
Bonds, and temporary cash investments acquired over 60 days to maturity, are
valued using the latest bid prices or using valuations based on a matrix system
(which considers such factors as security prices, yields, maturities, and
ratings), both as furnished by independent pricing services. Other temporary
cash investments are valued at amortized cost, which approximates market value.
2. FEDERAL INCOME TAXES: Each fund intends to continue to qualify as a
regulated investment company and distribute all of its income. Accordingly, no
provision for federal income taxes is required in the financial statements.
3. FUTURES CONTRACTS: Each fund, except the Tax-Exempt Money Market Fund,
may use Municipal Bond Index, U.S. Treasury Bond, and U.S. Treasury Note futures
contracts to a limited extent, with the objectives of enhancing returns,
managing interest-rate risk, maintaining liquidity, diversifying credit risk,
and minimizing transaction costs. The funds may purchase or sell futures
contracts instead of bonds to take advantage of pricing differentials between
the futures contracts and the underlying bonds. The funds may also seek to take
advantage of price differences among bond market sectors by simultaneously
buying futures (or bonds) of one market sector and selling futures (or bonds) of
another sector. Futures contracts may also be used to simulate a fully invested
position in the underlying bonds while maintaining a cash balance for liquidity.
The primary risks associated with the use of futures contracts are imperfect
correlation between changes in market values of bonds held by the funds and the
prices of futures contracts, and the possibility of an illiquid market.
Futures contracts are valued based upon their quoted daily settlement
prices. The aggregate principal amounts of the contracts are not recorded in the
financial statements. Fluctuations in the values of futures contracts are
recorded in the Statement of Net Assets as an asset (liability) and in the
Statement of Operations as unrealized appreciation (depreciation) until the
contracts are closed, when they are recorded as realized futures gains (losses).
4. DISTRIBUTIONS: Distributions from net investment income are declared
daily and paid on the first business day of the following month. Annual
distributions from realized capital gains, if any, are recorded on the
ex-dividend date.
5. OTHER: Security transactions are accounted for on the date securities
are bought or sold. Costs used to determine realized gains (losses) on the sale
of investment securities are those of the specific securities sold. Premiums and
original issue discounts are amortized and accreted, respectively, to interest
income over the lives of the respective securities.
B. The Vanguard Group furnishes at cost investment advisory, corporate
management, administrative, marketing, and distribution services. The costs of
such services are allocated to each fund under methods approved by the board of
trustees. Each fund has committed to provide up to 0.40% of its net assets in
capital contributions to Vanguard. At October 31, 2000, the funds had
contributed capital to Vanguard (included in Other Assets) of:
35
<PAGE>
-------------------------------------------------------------------------------
CAPITAL CONTRIBUTION PERCENTAGE PERCENTAGE OF
TO VANGUARD OF FUND VANGUARD'S
TAX-EXEMPT FUND (000) NET ASSETS CAPITALIZATION
-------------------------------------------------------------------------------
Money Market $1,482 0.02% 1.5%
Short-Term 368 0.02 0.4
Limited-Term 512 0.02 0.5
Intermediate-Term 1,574 0.02 1.6
Insured Long-Term 422 0.02 0.4
Long-Term 302 0.02 0.3
High-Yield 557 0.02 0.6
-------------------------------------------------------------------------------
The funds' trustees and officers are also directors and officers of Vanguard.
C. The funds' investment adviser may direct new issue purchases, subject to
obtaining the best price and execution, to underwriters who have agreed to
rebate or credit to the funds part of the underwriting fees generated. Such
rebates or credits are used solely to reduce the funds' management and
administrative expenses. The funds' custodian bank has also agreed to reduce its
fees when the funds maintain cash on deposit in their non-interest-bearing
custody accounts. For the year ended October 31, 2000, these arrangements
reduced expenses by:
----------------------------------------------------------
EXPENSE REDUCTION
(000)
--------------------------------
MANAGEMENT AND CUSTODIAN
TAX-EXEMPT FUND ADMINISTRATIVE FEES
----------------------------------------------------------
Money Market -- $80
Short-Term $ 20 21
Limited-Term 29 27
Intermediate-Term 211 74
Insured Long-Term 67 24
Long-Term 45 17
High-Yield 109 29
----------------------------------------------------------
D. During the year ended October 31, 2000, purchases and sales of investment
securities other than temporary cash investments were:
----------------------------------------------------------
(000)
-------------------------
TAX-EXEMPT FUND PURCHASES SALES
----------------------------------------------------------
Short-Term $ 896,473 $ 719,574
Limited-Term 1,037,834 823,083
Intermediate-Term 1,504,776 1,307,557
Insured Long-Term 705,169 839,178
Long-Term 363,966 432,147
High-Yield 915,523 875,111
----------------------------------------------------------
36
<PAGE>
E. Capital gains distributions are determined on a tax basis and may differ from
realized capital gains for financial reporting purposes due to differences in
the timing of realization of gains. At October 31, 2000, the following funds had
capital losses to offset future capital gains through the following fiscal
year-ends:
------------------------------------------------------------------------
CAPITAL LOSS
---------------------------------------
AMOUNT EXPIRATION: FISCAL YEAR(S)
TAX-EXEMPT FUND (000) ENDING OCTOBER 31
------------------------------------------------------------------------
Short-Term $ 1,230 2008
Limited-Term 6,087 2003-2008
Intermediate-Term 7,761 2008
Insured Long-Term 911 2007
Long-Term 14,556 2007-2008
High-Yield 21,788 2007-2008
------------------------------------------------------------------------
The Short-Term and Intermediate-Term Tax-Exempt Funds used a tax accounting
practice to apply $194,000 and $1,897,000, respectively, of the price of capital
shares redeemed to reduce capital gain distribution requirements for the year
ended October 31, 1999. Capital gains that were so offset have been reclassified
from accumulated net realized gains to paid in capital. After this reduction,
the Short-Term Tax-Exempt Fund had $258,000 of 1999 capital gains remaining, on
which the fund paid federal tax of $78,000 (included in Realized Net Loss)
during the year ended October 31, 2000. The balance after tax of $180,000 has
been reclassified from accumulated net realized gains to paid in capital.
The following funds had realized losses through October 31, 2000, which are
deferred for tax purposes and reduce the amount of unrealized appreciation
(depreciation) on investment securities for tax purposes (see Note F).
----------------------------------------------
Deferred Losses
Tax-Exempt Fund (000)
----------------------------------------------
Limited-Term $ 450
Intermediate-Term 37,332
Insured Long-Term 25,681
Long-Term 12,025
High-Yield 13,547
----------------------------------------------
F. At October 31, 2000, net unrealized appreciation (depreciation) of investment
securities for federal income tax purposes was:
------------------------------------------------------------------------------
(000)
--------------------------------------------
NET UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION
TAX-EXEMPT FUND SECURITIES SECURITIES (DEPRECIATION)
------------------------------------------------------------------------------
Short-Term $ 2,636 $ (4,463) $ (1,827)
Limited-Term* 13,074 (11,717) 1,357
Intermediate-Term* 177,516 (47,585) 129,931
Insured Long-Term* 102,474 (5,814) 96,660
Long-Term* 67,811 (21,761) 46,050
High-Yield* 79,872 (88,702) (8,830)
------------------------------------------------------------------------------
*See Note E.
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2000, the aggregate settlement value of open futures
contracts expiring in December 2000 and the related unrealized appreciation
(depreciation) were:
--------------------------------------------------------------------------------
(000)
----------------------------------------------
NUMBER OF AGGREGATE UNREALIZED
LONG (SHORT) SETTLEMENT APPRECIATION
TAX-EXEMPT FUND/FUTURES CONTRACTS CONTRACTS VALUE (DEPRECIATION)
--------------------------------------------------------------------------------
Insured Long-Term/Municipal Bond Index (218) $21,705 $ (86)
Long-Term/Municipal Bond Index 286 28,475 465
High-Yield/Municipal Bond Index (524) 52,171 (157)
--------------------------------------------------------------------------------
Unrealized appreciation (depreciation) on open futures contracts is required to
be treated as realized gain (loss) for federal income tax purposes.
38
<PAGE>
REPORT of
Independent Accountants
To the Shareholders and Trustees of Vanguard Municipal Bond Funds
In our opinion, the statement of net assets appearing in the insert to this
Annual Report to Shareholders and the accompanying related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Vanguard Tax-Exempt
Money Market Fund, Vanguard Short-Term Tax-Exempt Fund, Vanguard Limited-Term
Tax-Exempt Fund, Vanguard Intermediate-Term Tax-Exempt Fund, Vanguard Insured
Long-Term Tax-Exempt Fund, Vanguard Long-Term Tax-Exempt Fund and Vanguard
High-Yield Tax-Exempt Fund (separate portfolios of Vanguard Municipal Bond Fund,
hereafter referred to as the "Fund") at October 31, 2000, the results of each of
their operations for the year then ended, the changes in each of their net
assets for each of the two years in the period ended and the financial
highlights for each of the five years in the period ended, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 2000 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
November 29, 2000
--------------------------------------------------------------------------------
SPECIAL 2000 TAX INFORMATION (UNAUDITED) FOR
VANGUARD MUNICIPAL BOND FUNDS
This information for the fiscal year ended October 31, 2000, is included
pursuant to provisions of the Internal Revenue Code.
Each fund designates 100% of its income dividends as exempt-interest dividends.
39
<PAGE>
THE VANGUARD(R)
Family of Funds
STOCK FUNDS
500 Index Fund
Calvert Social Index(TM) Fund
Capital Opportunity Fund
Convertible Securities Fund
Developed Markets Index Fund
Emerging Markets Stock Index Fund
Energy Fund
Equity Income Fund
European Stock Index Fund
Explorer(TM) Fund
Extended Market Index Fund
Global Equity Fund
Gold and Precious Metals Fund
Growth and Income Fund
Growth Equity Fund
Growth Index Fund
Health Care Fund
Institutional Developed Markets Index Fund
Institutional Index Fund
International Growth Fund
International Value Fund
Mid-Cap Index Fund
Morgan(TM) Growth Fund
Pacific Stock Index Fund
PRIMECAP Fund
REIT Index Fund
Selected Value Fund
Small-Cap Growth Index Fund
Small-Cap Index Fund
Small-Cap Value Index Fund
Strategic Equity Fund
Tax-Managed Capital Appreciation Fund
Tax-Managed Growth and Income Fund
Tax-Managed International Fund
Tax-Managed Small-Cap Fund
Total International Stock Index Fund
Total Stock Market Index Fund
U.S. Growth Fund
U.S. Value Fund
Utilities Income Fund
Value Index Fund
Windsor(TM) Fund
Windsor(TM) II Fund
BALANCED FUNDS
Asset Allocation Fund
Balanced Index Fund
Global Asset Allocation Fund
LifeStrategy(R) Conservative Growth Fund
LifeStrategy(R) Growth Fund
LifeStrategy(R) Income Fund
LifeStrategy(R) Moderate Growth Fund
STAR(TM) Fund
Tax-Managed Balanced Fund
Wellesley(R) Income Fund
Wellington(TM) Fund
BOND FUNDS
Admiral(TM) Intermediate-Term Treasury Fund
Admiral(TM) Long-Term Treasury Fund
Admiral(TM) Short-Term Treasury Fund
GNMA Fund
High-Yield Corporate Fund
High-Yield Tax-Exempt Fund
Inflation-Protected Securities Fund
Insured Long-Term Tax-Exempt Fund
Intermediate-Term Bond Index Fund
Intermediate-Term Corporate Fund
Intermediate-Term Tax-Exempt Fund
Intermediate-Term Treasury Fund
Limited-Term Tax-Exempt Fund
Long-Term Bond Index Fund
Long-Term Corporate Fund
Long-Term Tax-Exempt Fund
Long-Term Treasury Fund
Preferred Stock Fund
Short-Term Bond Index Fund
Short-Term Corporate Fund
Short-Term Federal Fund
Short-Term Tax-Exempt Fund
Short-Term Treasury Fund
State Tax-Exempt Bond Funds
(California, Florida,
Massachusetts, New Jersey,
New York, Ohio, Pennsylvania)
Total Bond Market Index Fund
MONEY MARKET FUNDS
Admiral(TM) Treasury Money Market Fund
Federal Money Market Fund
Prime Money Market Fund
State Tax-Exempt Money Market Funds
(California, New Jersey,
New York, Ohio, Pennsylvania)
Tax-Exempt Money Market Fund
Treasury Money Market Fund
VARIABLE ANNUITY PLAN
Balanced Portfolio
Diversified Value Portfolio
Equity Income Portfolio
Equity Index Portfolio
Growth Portfolio
High-Grade Bond Portfolio
High Yield Bond Portfolio
International Portfolio
Mid-Cap Index Portfolio
Money Market Portfolio
REIT Index Portfolio
Short-Term Corporate Portfolio
Small Company Growth Portfolio
For information about Vanguard funds and our variable annuity plan, including
charges and expenses, obtain a prospectus from The Vanguard Group, P.O. Box
2600, Valley Forge, PA 19482-2600. Read it carefully before you invest or send
money.
40
<PAGE>
THE PEOPLE
Who Govern Your Fund
The trustees of your mutual fund are there to see that the fund is operated and
managed in your best interests since, as a shareholder, you are part owner of
the fund. Your fund trustees also serve on the board of directors of The
Vanguard Group, which is owned by the funds and exists solely to provide
services to them on an at-cost basis.
The majority of Vanguard's board members are independent, meaning that they
have no affiliation with Vanguard or the funds they oversee, apart from the
sizable personal investments they have made as private individuals. They bring
distinguished backgrounds in business, academia, and public service to their
task of working with Vanguard officers to establish the policies and oversee the
activities of the funds.
Among board members' responsibilities are selecting investment advisers for
the funds; monitoring fund operations, performance, and costs; reviewing
contracts; nominating and selecting new trustees/ directors; and electing
Vanguard officers.
The list below provides a brief description of each trustee's professional
affiliations. The year in which the trustee joined the Vanguard board is noted
in parentheses.
--------------------------------------------------------------------------------
TRUSTEES
JOHN J. BRENNAN (1987) Chairman of the Board, Chief Executive Officer, and
Director/Trustee of The Vanguard Group, Inc., and of each of the investment
companies in The Vanguard Group.
JOANN HEFFERNAN HEISEN (1998) Vice President, Chief Information Officer, and a
member of the Executive Committee of Johnson & Johnson; Director of Johnson &
Johnson*Merck Consumer Pharmaceuticals Co., The Medical Center at Princeton, and
Women's Research and Education Institute.
BURTON G. MALKIEL (1977) Chemical Bank Chairman's Professor of Economics,
Princeton University; Director of Prudential Insurance Co. of America, Banco
Bilbao Argentaria, Gestion, BKF Capital, The Jeffrey Co., NeuVis, Inc., and
Select Sector SPDR Trust.
ALFRED M. RANKIN, JR. (1993) Chairman, President, Chief Executive Officer, and
Director of NACCO Industries, Inc.; Director of The BFGoodrich Co.
JAMES O. WELCH, JR. (1971) Retired Chairman of Nabisco Brands, Inc. (Food
Products); retired Vice Chairman and Director of RJR Nabisco (Food and Tobacco
Products); Director of TECO Energy, Inc., and Kmart Corp.
J. LAWRENCE WILSON (1985) Retired Chairman and Chief Executive Officer of Rohm &
Haas Co.; Director of AmeriSource Health Corporation, Cummins Engine Co., and
The Mead Corp.; Trustee of Vanderbilt University.
--------------------------------------------------------------------------------
OTHER FUND OFFICERS
RAYMOND J. KLAPINSKY, Secretary; Managing Director and Secretary of The Vanguard
Group, Inc.; Secretary of each of the investment companies in The Vanguard
Group.
THOMAS J. HIGGINS, Treasurer; Principal of The Vanguard Group, Inc.; Treasurer
of each of the investment companies in The Vanguard Group.
--------------------------------------------------------------------------------
VANGUARD MANAGING DIRECTORS
R. GREGORY BARTON, Legal Department.
ROBERT A. DISTEFANO, Information Technology.
JAMES H. GATELY, Direct Investor Services.
KATHLEEN C. GUBANICH, Human Resources.
IAN A. MACKINNON, Fixed Income Group.
F. WILLIAM MCNABB, III, Institutional Investor Group.
MICHAEL S. MILLER, Planning and Development.
RALPH K. PACKARD, Chief Financial Officer.
GEORGE U. SAUTER, Quantitative Equity Group.
--------------------------------------------------------------------------------
JOHN C. BOGLE
Founder, Chairman and Chief Executive, 1974-1996
<PAGE>
[SHIP GRAPHIC]
[THE VANGUARD GROUP LOGO]
Post Office Box 2600
Valley Forge, Pennsylvania, 19482-2600
ABOUT OUR COVER
Our cover art evokes both Vanguard's rich past and the course we've set for the
future--our determination to provide superior investment performance and
top-notch service. The image is based on two works: a painting titled The First
Journey of 'Victory,' by the English artist W.L. Wyllie (1851?1931), and a
sculpture of a compass rose on Vanguard's campus near Valley Forge,
Pennsylvania.
All comparative mutual fund data are from Lipper Inc. or Morningstar, Inc.,
unless otherwise noted.
Standard & Poor's(R), S&P(R), S&P 500(R), Standard & Poor's 500, 500, S&P
MidCap400, and S&P SmallCap 600 are trademarks of The McGraw-Hill Companies,
Inc. All other index names may contain trademarks and are the exclusive property
of their respective owners.
WORLD WIDE WEB
www.vanguard.com
FUND INFORMATION
1-800-662-7447
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1-800-662-2739
INSTITUTIONAL INVESTOR SERVICES
1-800-523-1036
This report is intended for the fund's shareholders. It may not be distributed
to prospective investors unless it is preceded or accompanied by the current
fund prospectus.
(C) 2000 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing
Corporation, Distributor.
Q950 122000
<PAGE>
VANGUARD MUNICIPAL BOND FUNDS
Statement of Net Assets - October 31, 2000
The Statement of Net Assets should be read in conjunction with the Statement of
Operations, Statement of Changes in Net Assets, Financial Highlights, and Notes
to Financial Statements, all of which appear in the accompanying report.
This Statement provides a detailed list of each fund's municipal bond
holdings by state, including each security's market value on the last day of the
reporting period and information on credit enhancements such as insurance or
letters of credit. Other assets are added to, and liabilities are subtracted
from, the value of Total Municipal Bonds to calculate the fund's Net Assets.
Finally, Net Assets are divided by the outstanding shares of the fund to arrive
at its share price, or Net Asset Value (NAV) Per Share.
At the end of the Statement of Net Assets of each fund, you will find a
table displaying the composition of the fund's net assets on both a dollar and
per-share basis. Undistributed Net Investment Income is usually zero because the
fund distributes its net income to shareholders as a dividend each day. Any
realized gains must be distributed annually, so the bulk of net assets consists
of Paid in Capital (money invested by shareholders). The balance shown for
Accumulated Net Realized Gains usually approximates the amount available to
distribute to shareholders as taxable capital gains as of the statement date,
but may differ because certain investments or transactions may be treated
differently for financial statement and tax purposes. Any Accumulated Net
Realized Losses, and any cumulative excess of distributions over net realized
gains, will appear as negative balances. Unrealized Appreciation (Depreciation)
is the difference between the value of the fund's investments and their cost,
and reflects the gains (losses) that would be realized if the fund were to sell
all of its investments at their statement-date values.
--------------------------------------------------------------------------------
CONTENTS
Tax-Exempt Money Market Fund 1 Insured Long-Term Tax-Exempt Fund 53
Short-Term Tax-Exempt Fund 12 Long-Term Tax-Exempt Fund 62
Limited-Term Tax-Exempt Fund 20 High-Yield Tax-Exempt Fund 69
Intermediate-Term Tax-Exempt Fund 30 Key to Abbreviations 80
--------------------------------------------------------------------------------
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (98.6%)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA (1.9%)
Alabama Public School & College Auth. TOB VRDO 4.43% 11/2/2000 (3)++ $ 5,000 $ 5,000
Birmingham AL GO VRDO 4.35% 11/2/2000 LOC 21,000 21,000
Birmingham AL GO VRDO 4.35% 11/8/2000 (2)LOC 25,100 25,100
Birmingham AL GO VRDO 4.375% 11/8/2000 LOC 28,900 28,900
Jefferson County AL GO VRDO 4.38% 11/3/2000 LOC 40,000 40,000
Mobile AL IDR VRDO (Kimberly-Clark Tissue Co. Project) 4.35% 11/8/2000 33,550 33,550
-----------
$ 153,550
-----------
ALASKA (0.3%)
Alaska Housing Finance Corp. TOB VRDO 4.43% 11/2/2000 ++ 4,625 4,625
Anchorage AK Electric Util. Rev. VRDO (Muni. Light & Power) 4.30% 11/8/2000 LOC 21,000 21,000
-----------
$ 25,625
-----------
ARIZONA (0.6%)
Maricopa County AZ PCR VRDO (Southern California Edison Co.) 4.65% 11/2/2000 13,545 13,545
Mesa AZ IDA VRDO (Discovery Health) 4.40% 11/8/2000 (1) 14,300 14,300
</TABLE>
1
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Salt River Project Agricultural Improvement
& Power Dist. AZ CP 4.25% 11/17/2000 $ 6,400 $ 6,400
Salt River Project Agricultural Improvement
& Power Dist. AZ CP 4.25% 12/12/2000 15,500 15,500
-----------
$ 49,745
-----------
ARKANSAS (1.0%)
Arkansas Dev. Finance Auth. Health Care Fac. VRDO
(Sisters of Mercy) 4.35% 11/2/2000 19,500 19,500
Pulaski County AR Health Fac. St. Vincent Infirmary
(Catholic Health Initiatives) VRDO 4.40% 11/8/2000 15,200 15,200
Univ. of Arkansas Board of Trustees Rev. VRDO 4.39% 11/8/2000 (1) 50,670 50,670
-----------
$ 85,370
-----------
CALIFORNIA (0.3%)
California Student Loan Marketing Corp. VRDO 4.40% 11/2/2000 LOC $ 22,800 $ 22,800
-----------
COLORADO (4.5%)
Colorado Health Fac. Auth. Rev. VRDO
(Catholic Health Initiatives) 4.40% 11/8/2000 83,900 83,900
Colorado General Fund TRAN 5.00% 6/27/2001 66,300 66,590
Colorado Student Obligation Bond Auth. Rev. VRDO 4.35% 11/8/2000 (2) 3,300 3,300
Colorado Student Obligation Bond Auth. Rev. VRDO 4.40% 11/1/2000 (2) 26,600 26,600
Denver Colorado City & County Airport Rev. VRDO 4.45% 11/8/2000 20,000 20,000
Denver Colorado City & County Airport Rev. VRDO 4.50% 11/8/2000 145,000 145,000
Regional Transp. Dist. of Colorado COP VRDO
(Transit Vehicles Project) 4.40% 11/2/2000 LOC 26,225 26,225
-----------
$ 371,615
-----------
DELAWARE (0.5%)
Delaware Econ. Dev. Auth. VRDO (Hosp. Billing & Collection) 4.25% 11/8/2000 (2) 40,285 $ 40,285
-----------
DISTRICT OF COLUMBIA (0.7%)
District of Columbia Rev. VRDO (National Geographic Society) 4.25% 11/8/2000 10,000 10,000
District of Columbia Rev. VRDO (Smithsonian Institution) 4.25% 11/2/2000 49,435 49,435
-----------
$ 59,435
-----------
FLORIDA (7.3%)
Collier County FL Health Fac. Auth. Hosp. Rev. VRDO
(Cleveland Clinic Health System) 4.60% 11/2/2000 2,350 2,350
Dade County FL School Dist. GO 5.00% 2/15/2001 (1) 4,525 4,533
Florida Board of Educ. Public Educ. Capital Outlay TOB VRDO 4.43% 11/2/2000 ++ 7,980 7,980
Florida Dept. of General Services Rev. TOB VRDO
(Dept. of Environmental Protection Preservation-2000) 4.43% 11/2/2000 (4)++ 17,930 17,930
Florida Hosp. Assn. Loan Program VRDO (Capital Projects Auth.) 4.35% 11/8/2000 (4) 115,100 115,100
Florida Housing Financing Corp. Rev. (Homeowner Mortgage) 4.25% 3/1/2001 41,625 41,625
Gulf Breeze FL Local Govt. Loan Program VRDO 4.35% 11/2/2000 (3) 29,400 29,400
Jacksonville FL Electric Auth. Rev. CP (Electric System) 4.30% 12/11/2000 10,500 10,500
Jacksonville FL Electric Auth. Rev. VRDO (Electric System) 4.60% 11/2/2000 28,800 28,800
Orange County FL Housing Finance Auth. 3.95% 12/1/2000 2,595 2,595
Orange County FL Health Fac. Auth. VRDO
(Adventist Health System) 4.38% 11/2/2000 LOC 41,900 41,900
Orlando Florida Utilities Commission Water & Elec. Rev. BAN CP 4.27% 11/16/2000 25,900 25,900
Palm Beach County Florida Special Purpose Facility Rev. VRDO
(Flight Safety Project) 4.45% 11/2/2000 18,000 18,000
St. Lucie County FL PCR CP (Florida Power & Light Co.) 4.30% 12/11/2000 4,400 4,400
</TABLE>
2
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
St. Lucie County FL PCR VRDO
(Florida Power & Light Co. Project ) 4.60% 11/2/2000 $ 9,275 $ 9,275
St. Lucie County FL PCR VRDO
(Florida Power & Light Co. Project ) 4.70% 11/2/2000 65,000 65,000
St. Lucie County FL PCR VRDO
(Florida Power & Light Co. Project ) 4.85% 11/1/2000 44,100 44,100
Sunshine State FL Govt. Financing Comm. Rev. VRDO 4.25% 11/8/2000 (2) 55,000 55,000
Sunshine State FL Govt. Financing Comm. Rev. VRDO 4.40% 11/8/2000 (2) 74,100 74,100
Tampa Bay FL Water Util. Systems Rev. TOB VRDO 4.43% 11/2/2000 (3)++ 2,500 2,500
-----------
$ 600,988
-----------
GEORGIA (6.5%)
Burke County GA Dev. Auth. PCR CP
(Oglethorpe Power Corp. Vogtle Project) 4.30% 11/14/2000 15,000 15,000
Burke County GA Dev. Auth. PCR VRDO
(Georgia Power Co. Plant Vogtle Project) 4.65% 11/2/2000 56,365 56,365
Burke County GA Dev. Auth. PCR VRDO
(Georgia Power Co. Plant Vogtle Project) 4.80% 11/2/2000 28,600 28,600
Burke County GA Dev. Auth. PCR VRDO
(Oglethorpe Power Corp.) 4.30% 11/8/2000 (3) 136,650 136,650
Burke County GA Dev. Auth. PCR VRDO
(Oglethorpe Power Corp.) 4.65% 11/2/2000 (2) 32,590 32,590
Clayton County GA Dev. Auth Special Fac Rev. VRDO
(Delta Airlines Project) 4.35% 11/8/2000 LOC 54,000 54,000
Floyd County GA Dev. Auth. Rev. VRDO (Berry College) 4.40% 11/8/2000 LOC 5,000 5,000
Fulco GA Hosp. Auth. RAN VRDO (Shepherd Center Project) 4.30% 11/8/2000 LOC 7,300 7,300
Fulco GA Hosp. Auth. VRDO (Piedmont Hosp. Project) 4.35% 11/8/2000 LOC 11,600 11,600
Georgia GO 7.70% 2/1/2001 5,000 5,043
Georgia GO TOB VRDO 4.36% 11/2/2000 ++ 11,150 11,150
Georgia GO TOB VRDO 4.41% 11/2/2000 ++ 31,480 31,480
Macon-Bibb County GA Hosp. Auth Rev. VRDO
(Medical Center of Central Georgia) 4.40% 11/8/2000 LOC 15,550 15,550
Monroe County GA Dev. Auth. PCR VRDO
(Oglethorpe Power Corp.) 4.65% 11/2/2000 (2) 15,315 15,315
Muni. Electric Auth. of Georgia VRDO 4.30% 11/8/2000 LOC 14,600 14,600
Private College & Univ. Fac. Auth. GA VRDO (Emory Univ.) 4.25% 11/8/2000 68,600 68,600
Richmond County GA Hosp. Auth. Rev. VRDO
(Univ. of Health Services) 4.40% 11/8/2000 LOC 24,200 24,200
-----------
$ 533,043
-----------
HAWAII (0.5%)
Hawaii Airport System Rev. 5.35% 7/1/2001(1) 8,950 9,005
Hawaii GO 8.00% 2/1/2001 5,000 5,046
Honolulu HI City & County VRDO 4.40% 11/8/2000 LOC 22,455 22,455
-----------
$ 36,506
-----------
IDAHO (0.5%)
Idaho TAN 5.375% 6/29/2001 40,000 $ 40,255
-----------
ILLINOIS (8.8%)
Chicago IL Board of Educ. VRDO 4.35% 11/2/2000 (4) 132,000 132,000
Chicago IL Gas Supply Refunding Rev. VRDO
(Peoples Gas Light & Coke Co. Project) 4.30% 11/2/2000 43,700 43,700
Chicago IL Gas Supply Refunding Rev. VRDO
(Peoples Gas Light & Coke Co. Project) 4.32% 11/2/2000 12,000 12,000
Chicago IL Gas Supply Refunding Rev. VRDO
(Peoples Gas Light & Coke Co. Project) 4.35% 11/2/2000 23,000 23,000
Chicago IL Gas Supply Refunding Rev. VRDO
(Peoples Gas Light & Coke Co. Project) 4.37% 11/2/2000 8,000 8,000
</TABLE>
3
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Chicago IL Public Building Comm. Rev. TOB VRDO
(Chicago School Reform Board) 4.43% 11/2/2000 (3) ++ $ 4,800 $ 4,800
Chicago IL Rev. VRDO (Midway Airport) 4.65% 11/2/2000 (1) 134,200 134,200
Chicago IL Single Family Mortgage Rev. 4.40% 3/1/2001 5,250 5,250
Chicago IL O'Hare International Airport CP 4.35% 11/1/2000 LOC 6,000 6,000
Chicago Il Parl Dist TAN 5.125% 9/21/2001 17,000 17,120
Cook County IL Capital Improvement GO 5.00% 11/15/2000 (3) 4,500 4,502
Illinois Dev. Finance Auth. PCR VRDO
(Illinois Power Co. Project) 4.30% 11/8/2000 LOC 32,670 32,670
Illinois Dev. Finance Auth. PCR VRDO
(Illinois Power Co. Project) 4.40% 11/8/2000 (1) 27,000 27,000
Illinois Dev. Finance Auth. PCR VRDO
(Illinois Power Co. Project) 4.40% 11/8/2000 LOC 13,900 13,900
Illinois Dev. Finance Auth. VRDO (Chicago Symphony) 4.35% 11/8/2000 LOC 42,650 42,650
Illinois Educ. Fac. Auth. Rev.
(Field Museum of Natural History) 4.40% 11/8/2000 LOC 15,000 15,000
Illinois Educ. Fac. Auth. Rev. (Northwestern Univ.) 4.75% 12/1/2000 10,000 10,004
Illinois Educ. Fac. Auth. Rev. VRDO (DePaul Univ.) 4.35% 11/8/2000 LOC 36,500 36,500
Illinois GO 5.00% 8/1/2001 12,000 12,059
Illinois GO TOB VRDO 4.43% 11/2/2000 ++ 14,220 14,220
Illinois GO TOB VRDO 4.43% 11/2/2000 (1)++ 19,590 19,590
Illinois GO TOB VRDO 4.43% 11/2/2000 (3) ++ 20,000 20,000
Illinois Health Fac. Auth. Rev. VRDO (Carle Foundation) 4.35% 11/8/2000 (2) 43,700 43,700
Illinois Health Fac. Auth. Rev. VRDO
(Gottlieb Health Resources Inc. Obligated Group) 4.35% 11/2/2000 LOC 14,800 14,800
Regional Transp. Auth. IL TOB VRDO 4.43% 11/2/2000 (3)++ 12,895 12,895
Schaumburg IL GO VRDO 4.40% 11/8/2000 18,700 18,700
-----------
$ 724,260
-----------
INDIANA (1.9%)
Delaware County IN Hosp. Auth. Rev. VRDO
(Cardinal Health Systems) 4.40% 11/8/2000 (2) 40,000 40,000
Indiana Bond Bank Advance Funding Program Notes 4.75% 1/18/2001 25,000 25,030
Indiana Muni. Power Agency VRDO 4.30% 11/8/2000 LOC 10,000 10,000
Indiana Office Building Comm. Fac. Rev. VRDO
(Indiana Govt. Center South) 4.30% 11/8/2000 43,400 43,400
Indiana Office Building Comm. Fac. Rev. VRDO
(Pendleton Juvenile Correction Fac. ) 4.30% 11/8/2000 34,800 34,800
-----------
$ 153,230
-----------
IOWA (0.1%)
Iowa Finance Auth. VRDO (Wheaton Franciscan Services Inc.) 4.40% 11/8/2000 (1) 10,000 $ 10,000
-----------
KANSAS (0.6%)
Olathe KS Temporary Notes 5.00% 6/1/2001 11,125 11,156
Sedwick County KS Airport Fac. Rev. VRDO (Flight Safety) 4.45% 11/2/2000 34,000 34,000
-----------
$ 45,156
-----------
KENTUCKY (4.4%)
Jefferson County KY Board of Educ. RAN 5.00% 6/29/2001 34,000 34,123
Jeffersontown KY Lease Program Rev. VRDO
(Kentucky League of Cities Funding) 4.40% 11/8/2000 LOC 6,000 6,000
Kentucky Asset/Liability Comm. Project CP 4.20% 12/12/2000 LOC 11,100 11,100
Kentucky Asset/Liability Comm. Project CP 4.35% 3/1/2001 LOC 47,000 47,000
Kentucky Asset/Liability Comm. Project TRAN 5.00% 6/27/2001 50,000 50,212
Kentucky Asset/Liability Comm. Project TRAN 5.25% 6/27/2001 50,000 50,223
</TABLE>
4
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Kentucky Econ. Dev. Finance Auth. Hosp. Fac. Rev. VRDO
(Baptist Healthcare) 4.35% 11/8/2000 (1) $ 9,250 $ 9,250
Kentucky Econ. Dev. Finance Auth. Hosp. Fac. Rev. VRDO
(Baptist Healthcare) 4.65% 11/2/2000 (1) 12,325 12,325
Kentucky Housing Corp. Housing Rev. PUT 4.40% 1/1/2001 10,000 10,000
Kentucky Property & Building Comm Rev. (Project No. 59) 6.00% 11/1/2000 9,000 9,000
Louisville & Jefferson County KY Regional Airport
Auth. Special Fac. Rev. VRDO (UPS Worldwide) 4.70% 11/2/2000 56,400 56,400
Warren County KY Rev. VRDO
(Western Kentucky Univ. Student Life Project) 4.36% 11/2/2000 LOC 65,455 65,455
-----------
$ 361,088
-----------
LOUISIANA (0.4%)
Louisiana Gasoline & Fuels Tax Rev. 4.50% 11/15/2000 28,735 28,738
Louisiana GO TOB VRDO 4.43% 11/2/2000 (1)++ 3,545 3,545
-----------
$ 32,283
-----------
MAINE (0.2%)
Maine Health & Higher Educ. Fac. Auth. Rev. VRDO
(Bowdoin College) 4.40% 11/8/2000 LOC 12,865 12,865
Maine GO 5.25% 6/15/2001 6,650 6,677
-----------
$ 19,542
-----------
MARYLAND (2.0%)
Baltimore County MD Metro. Dist. CP 4.20% 12/12/2000 10,600 10,600
Baltimore County MD Metro. Dist. CP 4.25% 12/12/2000 8,100 8,100
Frederick County MD Consolidated Public Improvement VRDO 4.35% 11/8/2000 21,670 21,670
Maryland Comm. Dev. Admin. Dept.
Housing & Comm. Dev. (Residential) 4.70% 6/14/2001 14,100 14,100
Maryland GO TOB VRDO 4.43% 11/2/2000 ++ 12,865 12,865
Maryland Health & Higher Ed Fac. Auth. CP
(John Hopkins Univ.) 4.25% 11/20/2000 20,600 20,600
Montgomery MD Consolidated BAN CP 4.25% 12/11/2000 34,000 34,000
Washington Suburban Sanitation Dist. MD VRDO 4.35% 11/8/2000 40,780 40,780
-----------
$ 162,715
-----------
MASSACHUSETTS (2.6%)
Massachusetts BAN 5.00% 9/6/2001 100,000 100,570
Hanover Massachusetts BAN 5.00% 6/29/2001 16,345 16,401
Massachusetts Dev. Finance Agency Rev. VRDO
(Brooks School) 4.30% 11/2/2000 (1) 1,400 1,400
Massachusetts GO 6.00% 6/1/2001 (Prere.) 14,750 14,851
Massachusetts GO 7.00% 12/1/2000 (Prere.) 9,975 9,998
Massachusetts GO 7.50% 12/1/2000 (Prere.) 24,750 25,303
Shrewsbury MA BAN 5.00% 8/30/2001 47,000 47,265
-----------
$ 215,788
-----------
MICHIGAN (4.2%)
Michigan Building Auth. CP (Fac. Program) 4.30% 11/21/2000 91,885 91,885
Michigan GO (Recreation Program) 6.00% 11/1/2000 11,910 11,910
Michigan Housing Dev. Auth. PUT 3.95% 12/1/2000 10,765 10,765
Michigan Housing Dev. Auth. Rental Rev. VRDO 4.30% 11/8/2000 LOC 36,900 36,900
Michigan Muni. Bond Auth. State Revolving Fund Rev.
(Clean Water Revolving Fund Rev.) 5.00% 8/23/2001 97,000 97,528
Michigan Muni. Bond Auth. State Revolving Fund Rev.
TOB VRDO (Clean Water Revolving Fund Rev.) 4.43% 11/2/2000 ++ 15,700 15,700
Michigan Housing Dev. Auth. Rental Rev. 4.35% 11/8/2000 (1) 51,500 51,500
Oakland County MI Econ. Dev. Corp. VRDO
(Cranbrook Educ. Comm.) 4.45% 11/2/2000 6,500 6,500
</TABLE>
5
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Univ. of Michigan Hosp. Rev. VRDO 4.65% 11/2/2000 $ 17,745 $ 17,745
Univ. of Michigan Hosp. Rev. VRDO (Medical Service Plan) 4.65% 11/2/2000 6,800 6,800
-----------
$ 347,233
-----------
MINNESOTA (0.8%)
Canby MN Community Hosp. Dist. VRDO
(Sioux Valley Hosp. & Health Systems) 4.45% 11/3/2000 3,670 3,670
Minneapolis-St. Paul MN Metro. Airports Comm. CP 4.30% 11/1/2000 LOC 10,800 10,800
Minneapolis-St. Paul MN Metro. Airports Comm. CP 4.35% 11/1/2000 LOC 7,000 7,000
Minnesota Housing Finance Agency Single Family
Mortgage PUT 4.35% 8/30/2001 10,000 10,000
Minnesota Housing Finance Agency Single Family
Mortgage PUT 4.40% 8/30/2001 12,200 12,200
Minnesota School Dist. Tax & Aid Borrowing
Program Certificates COP 5.00% 8/9/2001 8,500 8,544
Minnesota School Dist. Tax & Aid Borrowing
Program Certificates COP 5.00% 8/17/2001 12,500 12,567
-----------
$ 64,781
-----------
MISSISSIPPI (1.2%)
Mississippi Capital Improvements GO 5.00% 11/1/2000 4,765 4,765
Mississippi GO Notes 5.00% 10/1/2001 90,000 90,514
Mississippi GO TOB VRDO 4.43% 11/2/2000 (Prere.)++ 5,030 5,030
-----------
$ 100,309
-----------
MISSOURI (5.2%)
Bi-State Dev. Agency of the Missouri-Illinois Metro. Dist. VRDO
(St. Clair County Metrolink Extension) 4.40% 11/2/2000 (1) 80,000 80,000
Curator of Univ. of Missouri Capital Project Notes 5.25% 6/29/2001 50,000 50,286
Missouri Building GO TOB VRDO 4.43% 11/2/2000 ++ 7,653 7,653
Missouri Health & Educ. Fac. Auth. VRDO
(Medical Research Facility-Stowers Institute) 4.30% 11/2/2000 (1) 50,000 50,000
Missouri Health & Educ. Fac. Auth. VRDO
(Sisters of Mercy Health Care System) 4.35% 11/2/2000 96,835 96,835
Missouri Health & Educ. Fac. Auth. VRDO
(Sisters of Mercy Health Care System) 4.35% 11/8/2000 59,800 59,800
Missouri Health & Educ. Fac. Auth. VRDO
(St. Anthony's Medical Center) 4.35% 11/8/2000 57,300 57,300
Missouri Higher Educ. Student Loan Auth. VRDO 4.40% 11/8/2000 LOC 24,900 24,900
-----------
$ 426,774
-----------
NEBRASKA (1.3%)
Lincoln NE CP (Lincoln Electric System) 4.30% 11/13/2000 17,600 17,600
Nebraska Higher Educ. Loan Program VRDO 4.40% 11/8/2000 LOC 90,230 90,230
-----------
$ 107,830
-----------
NEVADA (1.0%)
Clark County NV Airport Improvement Rev. VRDO
(McCarran International Airport) 4.25% 11/8/2000 LOC 30,500 30,500
Clark County NV Airport Improvement Rev. VRDO
(McCarran International Airport) 4.60% 11/8/2000 (1) 23,400 23,400
Clark County NV Flood Control GO 4.25% 11/1/2000 4,845 4,845
Clark County NV Flood Control GO 6.00% 11/1/2001 4,765 4,841
Clark County NV GO TOB VRDO (Limited Tax Airport Bonds) 4.48% 11/2/2000 ++ 4,105 4,105
Las Vegas NV Valley Water Dist. CP 4.25% 12/12/2000 LOC 14,000 14,000
-----------
$ 81,691
-----------
</TABLE>
6
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW HAMPSHIRE (0.3%)
New Hampshire Higher Educ. & Health Fac. Auth. VRDO
(St. Paul's School) 4.40% 11/2/2000 $ 25,000 $ 25,000
New Hampshire Housing Finance Auth. Single Family Rev. 4.00% 12/1/2000 3,600 3,600
-----------
$ 28,600
-----------
NEW JERSEY (1.0%)
New Jersey TRAN CP 4.25% 11/8/2000 20,500 20,500
New Jersey TRAN CP 4.25% 11/13/2000 30,000 30,000
New Jersey TRAN CP 4.25% 11/14/2000 35,000 35,000
-----------
$ 85,500
-----------
NEW MEXICO (3.0%)
New Mexico Finance Auth. Adminstrative Fee Rev. VRDO
(Trims Project) 4.40% 11/8/2000 LOC 9,291 9,291
New Mexico Highway Comm. Rev. VRDO 4.35% 11/8/2000 (4) 16,800 16,800
New Mexico TRAN 5.00% 6/29/2001 220,000 220,906
-----------
$ 246,997
-----------
NEW YORK (1.2%)
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. TOB VRDO 4.34% 11/2/2000 (3) ++ 20,495 20,495
New York City NY TOB VRDO 4.40% 11/2/2000 (3) ++ 4,000 4,000
New York State Environmental Fac. Corp. PCR TOB VRDO 4.34% 11/2/2000 (1) ++ 21,850 21,850
New York State GO PUT 4.35% 8/8/2001 30,000 30,000
New York State Housing Finance Agency Rev. 8.00% 11/1/2000 (Prere.) 4,140 4,223
New York State Local Govt. Assistance Corp. TOB VRDO 4.34% 11/2/2000 (2) ++ 9,070 9,070
New York Urban Dev. Corp. Rev.(Correctional Capital Fac.) 7.50% 1/1/2001 (Prere.) 8,000 8,201
-----------
$ 97,839
-----------
NORTH CAROLINA (1.2%)
Charlotte NC Airport Rev. VRDO 4.25% 11/8/2000 (1) 9,160 9,160
North Carolina Capital Fac. Finance Agency
(YMCA of Greater Winston-Salem) 4.35% 11/2/2000 LOC 20,000 20,000
North Carolina Medical Care Comm. Hosp. Rev. VRDO
(Moses H. Cone Memorial Hosp. Project) 4.40% 11/2/2000 41,500 41,500
North Carolina Medical Care Comm. Hosp. Rev. VRDO
(North Carolina Baptist Hosp. Project) 4.45% 11/2/2000 16,000 16,000
Winston-Salem NC COP VRDO 4.35% 11/2/2000 8,850 8,850
-----------
$ 95,510
-----------
OHIO (3.6%)
Clermont County OH Hosp. Rev. VRDO (Mercy Health Systems) 4.40% 11/8/2000 78,765 78,765
Cleveland OH School Dist. RAN 5.00% 6/1/2001 (2) 6,000 6,017
Cuyahoga County OH Hosp. Rev. VRDO
(Cleveland Clinic Foundation) 4.40% 11/8/2000 19,400 19,400
Cuyahoga County OH Hosp. Rev. VRDO
(Cleveland Clinic Foundation) 4.40% 11/8/2000 (2) 37,525 37,525
Franklin County OH Hosp. Rev. VRDO (U.S. Health Corp.) 4.35% 11/2/2000 LOC 19,915 19,915
Hamilton County OH Hosp. Fac. Rev. VRDO
(Health Alliance of Greater Cincinnati) 4.35% 11/8/2000 (1) 2,200 2,200
Lorain County OH Hosp. Fac. Rev. VRDO
(Catholic Healthcare Partners) 4.40% 11/8/2000 26,500 26,500
Montgomery County OH VRDO (Catholic Health Initiatves) 4.40% 11/8/2000 45,000 45,000
Ohio Higher Educ. Fac. Comm. Rev. VRDO (Kenyon College) 4.40% 11/8/2000 2,300 2,300
Ohio Housing Finance Agency Mortgage Rev. 4.35% 8/30/2001 20,000 20,000
Ohio Public Fac. Comm. Higher Educ. Capital Fac. Rev. 4.50% 11/1/2000 10,000 10,000
</TABLE>
7
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ohio Solid Waste Rev. VRDO (BP Exploration & Oil Inc.
Project-BP AMOCO PLC Guarantor) 4.75% 11/2/2000 $ 22,400 $ 22,400
Summit County OH BAN 5.50% 5/31/2001 4,500 4,518
-----------
$ 294,540
-----------
OKLAHOMA (0.6%)
Garfield County OK IDA PCR VRDO
(Oklahoma Gas & Electric Co. Project) 4.60% 11/8/2000 40,300 40,300
Oklahoma Student Loan Auth. VRDO 4.40% 11/8/2000 (1) 8,000 8,000
-----------
$ 48,300
-----------
OREGON (1.7%)
Multnomah County OR TRAN 5.25% 6/29/2001 20,000 20,111
Oregon GO VRDO 4.25% 11/8/2000 25,700 25,700
Oregon GO VRDO 4.40% 11/8/2000 74,450 74,450
Oregon Health Housing Educ. & Cultural Fac. Auth.
VRDO (Peacehealth) 4.38% 11/2/2000 LOC 14,060 14,060
Port of Portland OR Portland International Airport
Passenger Fac. Rev. TOB VRDO 4.48% 11/2/2000 (2)++ 5,130 5,130
-----------
$ 139,451
-----------
PENNSYLVANIA (4.1%)
Berks County PA GO 7.25% 11/15/2000 (3)(Prere.) 6,700 6,841
Berks County PA IDA VRDO (Lutheran Health Care) 4.35% 11/8/2000 (2) 14,700 14,700
Geisinger Health System Auth. of Pennsylvania VRDO
(Penn State Geisinger Health System) 4.60% 11/2/2000 29,080 29,080
Mercersburg Borough PA General Purpose Auth.
VRDO (Mercersburg College) 4.40% 11/8/2000 LOC 9,415 9,415
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. VRDO 4.35% 11/8/2000 (2) 8,200 8,200
Pennsylvania Higher Educ. Assistance Agency
Studen Loan Rev. VRDO 4.40% 11/8/2000 (2) 66,000 66,000
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. VRDO 4.40% 11/8/2000 LOC 119,000 119,000
Pennsylvania Higher Educ. Fac. Auth. VRDO
(Univ. of Penn. Health Services) 4.40% 11/8/2000 LOC 8,800 8,800
Pennsylvania Intergovernmental Cooperation Auth. Rev. 6.00% 6/15/2001 (3) 10,000 10,091
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
VRDO (Children's Hosp. Project) 4.60% 11/2/2000 2,800 2,800
Sayre PA Health Care Fac. Auth. VRDO (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) 4.35% 11/8/2000 (2) 29,300 29,300
St. Mary's Hosp. Auth. PA VRDO (Catholic Health Initiatives) 4.35% 11/8/2000 11,800 11,800
Univ. of Pittsburgh of the Commonwealth System of
Higher Educ. PA (Univ. Capital Project) 4.35% 11/8/2000 21,200 21,200
-----------
$ 337,227
-----------
RHODE ISLAND (0.1%)
Rhode Island Capital Dev. Loan VRDO 4.25% 11/8/2000 12,000 $ 12,000
-----------
SOUTH CAROLINA (0.7%)
South Carolina Public Service Auth. CP (Santee Cooper) 4.20% 12/14/2000 23,000 23,000
Berkeley County SC Exempt Fac. Ind. Rev. VRDO
(Amoco Chemical Co. Project) 4.75% 11/2/2000 19,000 19,000
Lexington SC School Dist. No. 1 BAN 5.25% 5/25/2001 12,000 12,032
-----------
$ 54,032
-----------
SOUTH DAKOTA (0.2%)
South Dakota Health & Educ. Fac. Auth. VRDO
(Sioux Valley Hosp. & Health System) 4.45% 11/3/2000 17,185 $ 17,185
-----------
</TABLE>
8
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TENNESSEE (1.9%)
Metro. Govt. of Nashville & Davidson County TN Health &
Educ. Fac. PUT (Vanderbilt Univ.) 4.15% 1/15/2001 $ 27,500 $ 27,500
Shelby County TN TAN 4.30% 11/8/2000 29,000 29,000
Metro. Govt. of Nashville & Davidson County TN Industrial
Dev. Board VRDO (Country Music Hall of Fame) 4.35% 11/2/2000 LOC 14,500 14,500
Metro. Govt. of Nashville TN Airport Auth.
Improvement Refunding VRDO 4.35% 11/8/2000 (3)LOC 36,600 36,600
Tennessee Housing Dev. Agency Rev.
(Homeownership Program) 4.75% 3/15/2001 9,130 9,130
Tennessee Local Dev. Auth. Rev. 5.00% 6/1/2001 37,500 37,552
-----------
$ 154,282
-----------
TEXAS (12.0%)
Austin City TX (Travis & Williamson Counties)
Combined Utility Systems CP 4.25% 11/16/2000 LOC 25,000 25,000
Austin City TX (Travis & Williamson Counties)
Combined Utility Systems CP 4.25% 11/17/2000 LOC 26,400 26,400
Austin City TX (Travis & Williamson Counties)
Combined Utility Systems CP 4.35% 2/22/2001 LOC 23,550 23,550
Austin City TX (Travis & Williamson Counties)
Combined Utility Systems TOB VRDO 4.43% 11/2/2000 ++ 8,880 8,880
Board of Regents of the Univ. Texas System Permanent
Univ. Fund CP 4.20% 12/12/2000 31,000 31,000
Cypress Fairbanks TX Independent School Dist. Unlimited
Tax Schoolhouse Bonds TOB VRDO 4.43% 11/2/2000 ++ 7,915 7,915
Dallas TX Area Rapid Transit Sales Tax Rev. CP 4.30% 11/20/2000 LOC 10,000 10,000
Greater East Texas Higher Educ. Auth. Student Loan Rev. VRDO 4.35% 11/2/2000 LOC 23,000 23,000
Greater East Texas Higher Educ. Auth. Student Loan Rev. VRDO 4.50% 5/1/2001 LOC 11,000 11,000
Gulf Coast TX Waste Disposal Auth. PCR VRDO
(Amoco Oil Co. Project) 4.75% 11/2/2000 5,360 5,360
Gulf Coast TX Waste Disposal Auth. PCR VRDO (Exxon Project) 4.60% 11/2/2000 7,550 7,550
Harris County TX GO CP 4.25% 12/14/2000 3,985 3,985
Harris County TX Health Fac. Dev. Corp. Hosp. Rev. VRDO
(Methodist Hosp. of Houston) 4.60% 11/2/2000 36,455 36,455
Harris County TX Health Fac. Dev. Corp. Rev. VRDO
(St. Luke's Episcopal Hosp.) 4.65% 11/2/2000 63,660 63,660
Harris County TX Health Fac. Dev. Corp. Rev. VRDO
(YMCA of Greater Houston) 4.60% 11/2/2000 LOC 20,800 20,800
Harris County TX IDA VRDO (Shell Oil Co. Project) 4.60% 11/2/2000 58,700 58,700
Harris County TX Toll Road VRDO 4.30% 11/8/2000 24,000 24,000
Harris County TX Toll Road VRDO 4.35% 11/8/2000 31,900 31,900
Houston City TX CP 4.35% 11/9/2000 13,600 13,600
Houston City TX TRAN 5.00% 6/30/2001 153,000 153,584
Houston TX Public Improvement TOB VRDO 4.43% 11/2/2000 ++ 3,210 3,210
Katy TX Independent School Dist. VRDO 4.35% 11/2/2000 23,100 23,100
Midland TX Independent School Dist. VRDO 4.35% 11/2/2000 4,700 4,700
North Harris TX Montgomery Community College Dist. VRDO 4.35% 11/2/2000 (3) 15,285 15,285
Pasadena TX Independent School Dist. VRDO 4.35% 11/2/2000 18,100 18,100
Port Arthur TX Navigation Dist. Ind. Dev.
Corp. VRDO (Air Products & Chemicals) 4.40% 11/8/2000 LOC 7,000 7,000
Red River TX Auth. PCR VRDO (Southwest Public Service) 4.45% 11/2/2000 (2) 20,000 20,000
Richardson TX Independent School Dist. GO VRDO 4.35% 11/2/2000 30,500 30,500
Richardson TX Independent School Dist. GO VRDO 4.35% 11/2/2000 4,600 4,600
Richardson TX Independent School Dist. TRAN 5.00% 8/31/2001 21,000 21,114
</TABLE>
9
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Southwest Texas Higher Educ. Auth. Inc. VRDO
(Southern Methodist Univ. Project) 4.30% 11/8/2000 LOC $ 44,900 $ 44,900
Southwest Texas Higher Educ. Auth. Inc. VRDO
(Southern Methodist Univ. Project) 4.65% 11/2/2000 LOC 17,500 17,500
Tarrant County TX Water Control & Improvement
Dist. TOB VRDO 4.43% 11/2/2000 (2)++ 4,995 4,995
Tarrant County TX Water Control & Improvement Dist. Rev. 6.20% 3/1/2001 (Prere.) 10,000 10,056
Texas TOB TRAN VRDO 4.50% 11/8/2000 ++ 100,000 100,000
Texas TRAN 5.25% 8/31/2001 71,000 71,550
Univ. of Texas Permanent Univ. Fund Rev. 6.50% 7/1/2001 (Prere.) 4,285 4,425
-----------
$ 987,374
-----------
UTAH (1.7%)
Central Utah Water Conservancy Dist. VRDO 4.40% 11/8/2000 (2) 25,355 25,355
Davis County UT School Dist. TAN 5.25% 6/29/2001 20,000 20,112
Emery County UT PCR VRDO (PacifiCorp Project) 4.65% 11/2/2000 (2) 17,900 17,900
Intermountain Power Agency UT TOB VRDO 4.33% 11/2/2000 (1) ++ 14,600 14,600
Intermountain Power Agency UT TOB VRDO 4.43% 11/2/2000 (1) ++ 23,000 23,000
Salt Lake CIty & County UT Airport Rev. VRDO 4.35% 11/2/2000 LOC 6,545 6,545
Salt Lake CIty & County UT Airport Rev. VRDO 4.35% 11/2/2000 LOC 8,000 8,000
Salt Lake County UT TRAN 5.00% 12/29/2000 20,000 20,019
Utah GO VRDO 4.30% 11/8/2000 4,000 4,000
-----------
$ 139,531
-----------
VERMONT (0.1%)
Vermont Educ. & Health Buildings Agency Rev. PUT
(Middlebury College Project) 4.35% 5/1/2001 6,400 $ 6,400
-----------
Virginia (0.1%)
Virginia Public School Auth. Rev. 5.90% 1/1/2001 4,975 $ 4,988
-----------
WASHINGTON (2.6%)
Port of Seattle WA VRDO 4.45% 11/8/2000 LOC 51,000 51,000
Port of Seattle WA TOB VRDO 4.48% 11/2/2000 ++ 3,500 3,500
Port of Seattle WA TOB VRDO 4.48% 11/2/2000 (1) ++ 5,255 5,255
Port of Seattle WA VRDO 4.55% 11/8/2000 LOC 76,000 76,000
Seattle WA Muni. Light & Power Rev. VRDO 4.40% 11/8/2000 36,300 36,300
Seattle WA Water System Rev. VRDO 4.40% 11/8/2000 LOC 19,400 19,400
Washington Higher Educ. Fac. Auth. VRDO
(Seattle Pacific Univ. Project) 4.35% 11/2/2000 LOC 12,000 12,000
Washington Housing Finance Commission
(Single Family Program Notes) 4.40% 4/1/2001 8,175 8,175
-----------
$ 211,630
-----------
WEST VIRGINIA (0.7%)
Putnam County WV Solid Waste Disposal Rev. VRDO
(Toyota Manufacturing Corp.) 4.40% 11/8/2000 56,700 56,700
-----------
Wisconsin (2.3%)
Milwaukee WI IDR VRDO (Wisconsin Electric Power Co. Project) 4.40% 11/2/2000 10,000 10,000
Oak Creek WI VRDO (Wisconsin Electric Power Co. Project) 4.30% 11/8/2000 47,100 47,100
Univ. of Wisconsin Hosp. & Clinics Auth. Rev. VRDO
(Univ. of Wisconsin Hosp.) 4.35% 11/8/2000 (1) 16,500 16,500
</TABLE>
10
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Village of Pleasant Prairie WI PCR VRDO
(Wisconsin Electric Power Co. Project) 4.40% 11/2/2000 $ 40,390 $ 40,390
Wisconsin State Dept. of Transp. Rev. CP 4.20% 12/12/2000 21,631 21,631
Wisconsin State GO CP 4.25% 11/16/2000 10,338 10,338
Wisconsin GO TOB VRDO 4.43% 11/2/2000 ++ 5,000 5,000
Wisconsin Health & Educ. Fac. Auth. Rev. VRDO
(Wheaton Franciscan Services) 4.45% 11/2/2000 LOC 38,300 38,300
-----------
$ 189,259
-----------
WYOMING (0.2%)
Wyoming State Educ. Fund TRANS 5.25% 6/27/2001 20,000 20,113
------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $8,099,355) $8,099,355
------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (1.4%)
Other Assets--Note B 144,952
Liabilities (30,362)
-----------
$ 114,590
-----------
------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%)
------------------------------------------------------------------------------------------------------------------------
Applicable to 8,215,066,803 outstanding $.001 par value shares of beneficial
interest (unlimited authorization) $8,213,945
========================================================================================================================
NET ASSET VALUE PER SHARE $ 1.00
========================================================================================================================
</TABLE>
*See Note A in Notes to Financial Statements.
++Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from registration,
normally to qualified institutional buyers. At October 31, 2000, the aggregate
value of these securities was $437,968,000, representing 5.3% of net assets.
For key to abbreviations and other references, see page 80.
------------------------------------------------------------------------------
AT OCTOBER 31, 2000, NET ASSETS CONSISTED OF:
------------------------------------------------------------------------------
AMOUNT PER
(000) SHARE
------------------------------------------------------------------------------
Paid in Capital $8,215,085 $1.00
Undistributed Net Investment Income -- --
Accumulated Net Realized Losses (1,140) --
Unrealized Appreciation -- --
------------------------------------------------------------------------------
NET ASSETS $8,213,945 $1.00
==============================================================================
11
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (100.1%)
------------------------------------------------------------------------------------------------------------------------
ALABAMA (0.9%)
Alabama GO 5.50% 10/1/2002 $ 8,000 $ 8,157
Alabama GO 5.50% 10/1/2003 10,000 10,281
-----------
$ 18,438
-----------
ALASKA (1.8%)
Alaska Housing Finance Corp. (State Capital Project) 5.25% 6/1/2002 (1) 7,190 7,267
Alaska Housing Finance Corp. (State Capital Project) 5.25% 6/1/2003 (1) 7,295 7,404
North Slope Borough AK GO 0.00% 1/1/2002 (1) 23,650 22,395
-----------
$ 37,066
ARIZONA (0.6%)
Arizona Transp. Board Highway Rev. 5.00% 7/1/2001 12,010 $ 12,062
-----------
CALIFORNIA (5.8%)
Contra Costa County CA TRAN 5.25% 10/1/2001 25,000 25,315
Sacramento County CA TRAN 5.00% 10/4/2001 10,000 10,105
Sacramento County CA TRAN 5.25% 10/4/2001 24,985 25,307
San Diego CITY CA TAN 5.25% 10/2/2001 23,000 23,291
Santa Barbara County CA TRAN 5.25% 10/2/2001 31,000 31,392
-----------
$ 115,410
COLORADO (0.5%)
Jefferson County CO School Dist. GO 5.00% 12/15/2001 (3) 5,800 5,839
Jefferson County CO School Dist. GO 5.00% 12/15/2002 (3) 4,500 4,551
-----------
$ 10,390
-----------
CONNECTICUT (0.5%)
Connecticut GO 6.25% 11/15/2002 (Prere.) 5,300 5,591
Connecticut GO 7.00% 3/15/2003 5,000 5,287
-----------
$ 10,878
-----------
DELAWARE (0.6%)
Delaware GO 5.00% 4/1/2002 3,000 3,027
Delaware Transp. Auth. Transp. System Rev. 6.50% 7/1/2001 (Prere.) 8,500 8,786
-----------
$ 11,813
-----------
DISTRICT OF COLUMBIA (1.9%)
District of Columbia GO 5.50% 6/1/2001 25,000 25,127
District of Columbia GO 6.00% 6/1/2001(1)(ETM) 8,115 8,190
District of Columbia Univ. Rev. (George Washington Univ.) 5.25% 9/15/2002 (1) 4,285 4,341
-----------
$ 37,658
-----------
FLORIDA (2.9%)
Dade County FL Sales Tax Rev. 6.00% 10/1/2001 (2) 2,500 2,537
Florida Board of Educ. Capital Outlay GO 5.00% 6/1/2002 10,535 10,632
Florida Board of Educ. Capital Outlay GO 6.50% 6/1/2002 (Prere.) 6,200 6,457
Florida Board of Educ. Capital Outlay GO 6.625% 6/1/2002 (Prere.) 5,000 5,216
Florida Board of Higher Educ. 5.40% 5/1/2001 (ETM) 3,600 3,619
Florida Muni. Power Agency VRDO (Stanton Project) 4.25% 11/8/2000 (1) 2,490 2,490
Jacksonville FL Electric Auth. Rev. (St. John River) 5.00% 10/1/2002 11,910 12,040
Miami-Dade County FL School Board COP 5.00% 8/1/2001 (4) 3,850 3,868
Miami-Dade County FL School Board COP 5.00% 8/1/2002 (4) 5,795 5,850
Orange County FL Health Fac. Auth. VRDO
(AdventistHealth System/Sunbelt) 4.38% 11/2/2000 LOC 5,400 5,400
-----------
$ 58,109
-----------
</TABLE>
12
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GEORGIA (1.7%)
Burke County GA Dev. Auth. PCR PUT
(Georgia Power Co. Plant Vogtle Project) 4.53% 3/1/2002 $ 10,000 $ 9,939
Burke County GA Dev. Auth. PCR VRDO
(Georgia Power Co. Plant Vogtle Project) 4.65% 11/2/2000 2,500 2,500
Burke County GA Dev. Auth. PCR VRDO
(Oglethorpe Power Corp.) 4.30% 11/8/2000 (3) 505 505
Georgia GO 5.00% 8/1/2001 5,070 5,096
Georgia GO 7.50% 4/1/2001 5,500 5,570
Monroe County GA Dev. Auth. PCR VRDO
(Oglethorpe Power Corp.) 4.65% 11/2/2000 (2) 200 200
Newton County GA School Dist. GO 5.00% 8/1/2001 4,230 4,249
Newton County GA School Dist. GO 5.25% 8/1/2002 5,360 5,431
-----------
$ 33,490
-----------
HAWAII (2.4%)
Hawaii GO 5.00% 12/1/2001 5,000 5,032
Hawaii GO 5.25% 4/1/2003 (1) 5,000 5,084
Hawaii GO 5.50% 7/1/2001 6,500 6,547
Hawaii GO 6.00% 9/1/2001 3,000 3,038
Hawaii GO 6.25% 3/1/2005 (3) 5,000 5,316
Hawaii Highway Rev. 5.00% 7/1/2002 (3) 3,530 3,559
Honolulu HI City & County GO 5.00% 7/1/2002 (3) 4,675 4,714
Honolulu HI City & County GO 5.25% 11/1/2003 (3)(ETM) 2,550 2,605
Honolulu HI City & County GO 5.25% 11/1/2003 (3) 5 5
Honolulu HI GO 5.00% 11/1/2001 (3) 13,135 13,212
-----------
$ 49,112
-----------
ILLINOIS (4.2%)
Chicago IL Gas Supply Refunding Rev. VRDO
(Peoples Gas Light & Coke Co. Project) 4.30% 11/2/2000 2,600 2,600
Chicago IL GO 5.50% 1/1/2002 (3) 3,000 3,034
Illinois Educ. Fac. Auth. Rev. (Alder Planetarium) VRDO 4.35% 11/8/2000 24,400 24,400
Illinois Educ. Fac. Auth. Rev. (Univ. Chicago) 5.70% 12/1/2003 (Prere.) 13,875 14,595
Illinois GO 5.00% 8/1/2002 3,000 3,027
Illinois GO 5.50% 6/1/2002 5,200 5,282
Illinois Health Fac. Auth. Rev. VRDO
(Gottlieb Health Resources Inc. Obligated Group) 4.35% 11/2/2000 LOC 14,700 14,700
Metro. Pier & Exposition Auth. IL Dedicated Sales Tax Rev. 6.50% 6/15/2003 (Prere.) 10,020 10,691
Regional Transp. Auth. IL Rev. 6.125% 6/1/2002 (Prere.) 5,000 5,130
-----------
$ 83,459
-----------
INDIANA (0.8%)
Indiana Transp. Finance Auth. Airport Lease Rev. 6.25% 11/1/2002 (Prere.) 5,008 5,274
Indianapolis IN Local Public Improvements 6.25% 1/1/2002 4,000 4,077
Indianapolis IN Local Public Improvements 6.70% 1/1/2002 (Prere.) 6,550 6,843
-----------
$ 16,194
-----------
KANSAS (0.4%)
Merriam KS Hosp. Rev. (Shawnee Medical Center Project) 7.25% 9/1/2001 (Prere.) 3,580 3,729
Wyandotte County Kansas City KS Unified Govt. GO 5.00% 9/1/2001 (2) 4,150 4,172
-----------
$ 7,901
-----------
LOUISIANA (1.4%)
Jefferson Parish LA Hosp. Dist. VRDO
(West Jefferson Medical Center) 4.35% 11/8/2000 LOC 18,575 18,575
Louisiana GO 5.00% 4/15/2002 (2) 3,400 3,426
Louisiana GO 5.50% 4/15/2002 (4) 6,160 6,250
-----------
$ 28,251
-----------
</TABLE>
13
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MARYLAND (0.7%)
Maryland Health & Higher Educ. Fac. Auth. VRDO
(Johns Hopkins Hosp.) 4.35% 11/8/2000 LOC $ 14,000 $ 14,000
-----------
MASSACHUSETTS (5.1%)
Boston MA BAN 5.25% 5/1/2002 17,800 17,999
Massachusetts Bay Transp. Auth. Rev. 7.00% 3/1/2001 (Prere.) 6,000 6,171
Massachusetts GO 6.25% 7/1/2002 25,180 25,931
Massachusetts GO 6.50% 8/1/2001 (Prere.) 3,115 3,226
Massachusetts GO 6.75% 8/1/2001 (Prere.) 13,500 14,005
Massachusetts GO 7.625% 6/1/2001 (Prere.) 10,000 10,386
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2002 5,040 4,984
Massachusetts Health & Educ. Fac. Auth. Rev. PUT
(Fairview Extended Care) 4.55% 7/14/2002 (1) 3,250 3,230
Massachusetts Housing Finance Agency
(Construction Loan Notes) 4.10% 3/1/2002 (4) 11,500 11,413
Massachusetts Water Resources Auth. Rev. 6.50% 12/1/2001 (Prere.) 4,300 4,482
-----------
$ 101,827
-----------
MICHIGAN (2.4%)
Michigan Hosp. Finance Auth. Rev. (McLaren Obligated Group) 7.50% 9/15/2001 (Prere.) 5,750 6,014
Michigan Housing Dev. Auth. Rental Rev. VRDO 4.30% 11/8/2000 LOC 3,300 3,300
Michigan Muni. Bond Bank Auth. Rev. 5.00% 8/23/2001 11,000 11,046
Michigan Muni. Bond Bank Auth. Rev. 5.00% 12/1/2002 11,905 12,041
Michigan Strategic Fund Limited Obligation Rev. PUT
(Detroit Edison) 4.73% 9/1/2001 15,065 15,054
Univ. of Michigan Hosp. Rev. VRDO 4.65% 11/2/2000 600 600
-----------
$ 48,055
-----------
MINNESOTA (1.2%)
Minneapolis MN GO 5.00% 12/1/2001 16,210 16,329
Minnesota GO 6.70% 8/1/2001 (Prere.) 8,590 8,739
-----------
$ 25,068
-----------
MISSISSIPPI (0.3%)
Mississippi GO 5.00% 8/1/2001 2,495 2,507
Mississippi GO (Capital Improvements) 5.00% 11/1/2001 3,555 3,577
-----------
$ 6,084
-----------
MISSOURI (1.4%)
Missouri Environmental Improvement & Energy Resource
Auth. Water PCR (Clean Water SRF Program) 5.50% 6/15/2002 14,800 14,982
Missouri Health & Educ. Fac. Auth. VRDO
(Sisters of Mercy Health Care System) 4.35% 11/2/2000 5,365 5,365
St. Louis County MO Rockwood School Dist. GO 8.50% 2/1/2001 8,000 8,079
-----------
$ 28,426
-----------
MONTANA (0.5%)
Forsyth MT PCR PUT (Portland General Electric Co.) 4.60% 5/1/2003 10,000 $ 9,804
-----------
NEBRASKA (1.6%)
Nebraska Public Power Dist. Rev. 5.00% 1/1/2001 8,500 8,507
Nebraska Public Power Dist. Rev. 5.00% 1/1/2002 10,000 10,058
Nebraska Public Power Dist. Rev. 5.00% 1/1/2002 (1) 5,000 5,031
Nebraska Public Power Dist. Rev. 5.00% 1/1/2003 (1) 5,000 5,052
Omaha NE Public Power Dist. Electric Rev. 5.00% 2/1/2001 4,250 4,257
-----------
$ 32,905
-----------
</TABLE>
14
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEVADA (1.2%)
Clark County NV Airport Improvement Rev. VRDO
(McCarran International Airport) 4.25% 11/8/2000 LOC $ 7,245 $ 7,245
Clark County NV GO 5.25% 11/1/2002 6,255 6,351
Clark County NV Improvement & Refunding Rev. 6.00% 10/1/2001 4,845 4,915
Nevada GO 4.50% 7/1/2001 5,085 5,089
-----------
$ 23,600
-----------
NEW JERSEY (2.0%)
New Jersey Econ. Dev. Auth. Rev. VRDO
(Hoffman-La Roche Project) 4.60% 11/2/2000 LOC 2,100 2,100
New Jersey Econ. Dev. Auth. Rev. VRDO
(Natural Gas Fac. NUI Corp.) 4.40% 11/2/2000 (2) LOC 1,100 1,100
New Jersey GO 5.50% 7/15/2002 5,000 5,091
New Jersey Health Care Fac. Finance Auth. Rev.
(Community Medical Center, Kimball Medical Center,
Kensington Manor Care Center Obligated Group) 4.50% 7/1/2001 (4) 4,835 4,838
New Jersey Transit Corp. Rev. 5.25% 9/1/2001 (4) 5,000 5,038
New Jersey Transp. COP 5.25% 9/15/2004 (2) 12,000 12,303
Port Auth. of New York & New Jersey 4.75% 9/15/2001 (3) 9,655 9,677
-----------
$ 40,147
-----------
NEW MEXICO (3.0%)
New Mexico GO 5.50% 9/1/2001 4,475 4,517
New Mexico Severance Tax Rev. 5.00% 7/1/2002 9,600 9,686
New Mexico TRAN 5.00% 6/29/2001 45,000 45,162
-----------
$ 59,365
-----------
NEW YORK (11.3%)
Erie County NY GO 5.00% 11/1/2002 (3) 2,000 2,025
Long Island NY Power Auth. Electric System Rev. 5.00% 4/1/2002 8,000 8,053
Long Island NY Power Auth. Electric System Rev. 5.00% 4/1/2003 8,500 8,584
Metro. NY Transp. Auth. Rev. Transp. Fac. 6.375% 7/1/2002 (Prere.) 4,000 4,208
Muni. Assistance Corp. for New York City NY Rev. 5.00% 7/1/2001 10,000 10,048
Muni. Assistance Corp. for New York City NY Rev. 5.00% 7/1/2002 4,500 4,548
Muni. Assistance Corp. for New York City NY Rev. 5.25% 7/1/2001 5,110 5,143
Nassau County NY GO 6.50% 3/1/2001 7,264 7,306
Nassau County NY General Improvement GO 4.90% 3/1/2001 (3) 11,060 11,082
New York City NY GO 7.00% 8/1/2002 (Prere.) 5,000 5,295
New York City NY GO 7.50% 2/1/2002 (Prere.) 12,475 13,097
New York City NY GO 7.50% 8/1/2002 (Prere.) 11,770 12,563
New York City NY GO 7.625% 2/1/2002 (Prere.) 12,790 13,485
New York City NY GO 7.70% 2/1/2002 (Prere.) 3,350 3,535
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 4.55% 11/2/2000 (3) 5,300 5,300
New York State COP 5.00% 3/1/2002 16,230 16,331
New York State Dormitory Auth. Rev. (Brookdale Hosp.) 5.00% 2/15/2001 4,335 4,342
New York State Dormitory Auth. Rev.
(Interfaith Medical Center) 5.25% 2/15/2002 2,565 2,588
New York State Dormitory Auth. Rev. (Jamaica Hosp.) 5.00% 2/15/2001 2,725 2,729
New York State Dormitory Auth. Rev. (State Univ.) 7.40% 5/15/2001 10,500 10,666
New York State Dormitory Auth. Rev. (Wycoff Heights) 5.00% 2/15/2001 2,605 2,609
New York State Environmental Fac. (Riverbank State Park) 7.375% 4/1/2002 (Prere.) 5,000 5,304
New York State Local Govt. Assistance Corp. 6.25% 4/1/2002 (Prere.) 10,000 10,457
New York State Local Govt. Assistance Corp. 7.50% 4/1/2001 (Prere.) 10,000 10,331
New York State Power Auth. Rev. 5.125% 1/1/2003 (Prere.) 5,870 6,073
New York State Power Auth. Rev. 6.75% 1/1/2001 (Prere.) 7,900 8,089
</TABLE>
15
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York State Thruway Auth. (Highway & Bridge Trust Fund) 5.25% 4/1/2002 (3) 10,000 10,126
New York State Urban Dev. Corp. Rev.
(Community Enhancement Fac.) 4.50% 4/1/2001 11,645 11,650
New York State Urban Dev. Corp. Rev.
(Community Enhancement Fac.) 4.50% 4/1/2002 3,000 2,999
New York State Urban Dev. Corp. Rev.
(Correctional Fac. Service Contract) 5.00% 1/1/2002 4,350 4,375
United Nations Dev. Corp. New York Rev. 6.00% 7/1/2003 (Prere.) 4,000 4,238
-----------
$ 227,179
-----------
NORTH CAROLINA (0.1%)
North Carolina Medical Care Comm. Hosp. Rev. VRDO
(North Carolina Baptist Hosp. Project) 4.45% 11/2/2000 $ 1,100 $ 1,100
-----------
OHIO (4.3%)
Cincinnati OH School Dist. Hamilton County TAN 5.00% 12/1/2001 (2) 5,000 5,018
Cincinnati OH School Dist. TAN 5.50% 12/1/2000 (2) 4,300 4,304
Columbus OH GO 5.00% 5/15/2002 3,000 3,028
Lorain County OH Hosp. Fac. Rev. VRDO
(Catholic Healthcare Partners) 4.40% 11/8/2000 1,700 1,700
Northeast OH Regional Sewer Dist. Rev. 6.50% 11/15/2001 (2)(Prere.) 5,750 5,931
Ohio Air Quality Dev. Auth. VRDO
(Cincinnati Gas & Electric Co. Project) 4.60% 11/2/2000 LOC 3,200 3,200
Ohio Building Auth. Rev. (State Correctional Fac.) 6.50% 10/1/2001 5,100 5,197
Ohio Higher Educ. Capital Fac. GO 5.00% 2/1/2002 9,200 9,271
Ohio Housing Finance Agency Mortgage Rev. 3.60% 9/1/2001 2,585 2,563
Ohio Housing Finance Agency Mortgage Rev. 3.80% 9/1/2002 2,780 2,735
Ohio Housing Finance Agency Mortgage Rev. 3.95% 9/1/2003 2,585 2,528
Ohio State Highway Capital Improvements Rev. GO 5.25% 5/1/2002 22,500 22,788
Ohio Water Dev. Auth. (Cleveland Electric) PUT 5.35% 10/1/2002 7,000 6,994
Ohio Water Dev. Auth. PCR PUT (Ohio Edison Co.) 5.40% 12/1/2001 10,000 9,993
-----------
$ 85,250
-----------
OKLAHOMA (0.5%)
Tulsa County OK Independent School Dist. No. 9
Union Board of Educ. 4.50% 6/1/2001 3,500 3,502
Tulsa County OK Independent School Dist. No. 9
Union Board of Educ. 4.50% 6/1/2002 3,500 3,501
Tulsa County OK Independent School Dist. No. 9
Union Board of Educ. 4.625% 6/1/2003 3,500 3,505
-----------
$ 10,508
-----------
OREGON (0.6%)
Oregon Dept. Administrative Services COP 6.00% 5/1/2002 (2) 3,880 3,967
Oregon Health, Housing, Educ., & Cultural Fac. Auth.
College Housing Project PUT (Portland State Univ.) 5.00% 5/1/2003 LOC 5,240 5,186
Port Auth. of Portland OR Airport Rev.
(Portland International Airport) 5.00% 7/1/2002 (3) 3,195 3,220
-----------
$ 12,373
-----------
PENNSYLVANIA (7.4%)
Allegheny County PA Airport Rev.
(Pittsburgh International Airport) 5.00% 1/1/2002 (1) $ 4,055 $ 4,072
Geisinger Health System Auth. of Pennsylvania VRDO
(Penn State Geisinger Health System) 4.60% 11/2/2000 9,430 9,430
Pennsylvania GO 5.00% 10/15/2002 5,500 5,563
Pennsylvania GO 5.125% 9/15/2002 (2) 4,540 4,602
</TABLE>
16
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pennsylvania GO 5.25% 11/15/2000 (3) 7,500 7,502
Pennsylvania GO 5.25% 11/15/2001 (3) 10,000 10,093
Pennsylvania GO 5.25% 10/15/2003 10,500 10,736
Pennsylvania Intergovernmental Cooperation Auth. Rev. 5.00% 6/15/2002 (3) 10,040 10,133
Pennsylvania Intergovernmental Cooperation Auth. Rev. 6.00% 6/15/2002 (3) 7,000 7,168
Pennsylvania Intergovernmental Cooperation Auth. Rev.
(Philadelphia Funding Program) 6.80% 6/15/2002 (Prere.) 5,050 5,237
Philadelphia PA GO 5.00% 5/15/2001 5,940 5,952
Philadelphia PA GO 5.00% 5/15/2003 (3) 5,845 5,918
Philadelphia PA Gas Works Rev. 7.00% 7/1/2002 (8) 12,090 12,565
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev. VRDO
(Children's Hosp. Project) 4.60% 11/2/2000 20,000 20,000
Philadelphia PA Muni. Auth. Rev. 8.625% 11/15/2001 (Prere.) 15,500 16,463
Pittsburgh PA GO 5.00% 3/1/2002 (1) 10,000 10,070
Sayre PA Health Care Fac. Auth. VRDO (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) 4.35% 11/8/2000 (2) 2,200 2,200
-----------
$ 147,704
-----------
RHODE ISLAND (1.6%)
Rhode Island Depositors Econ. Protection Corp. 6.95% 8/1/2002 (Prere.) 14,250 15,114
Rhode Island Housing & Mortgage Finance Corp. 5.00% 10/1/2002 16,000 16,130
-----------
$ 31,244
-----------
SOUTH CAROLINA (1.4%)
Berkeley County SC Exempt Fac. Ind. Rev. VRDO
(Amoco Chemical Co. Project) 4.75% 11/2/2000 120 120
Greenville County SC School Dist. GO 5.25% 3/1/2002 18,000 18,205
South Carolina Public Service Auth. Rev. (Santee Cooper) 6.50% 7/1/2002 (Prere.) 10,000 10,524
-----------
$ 28,849
-----------
TENNESSEE (1.6%)
Knoxville TN GO 5.00% 6/1/2002 20,000 20,160
Memphis TN GO 5.50% 4/1/2002 4,360 4,425
Metro. Govt. of Nashville & Davidson County TN GO 6.15% 5/15/2002 (Prere.) 8,050 8,411
-----------
$ 32,996
-----------
TEXAS (13.5%)
Brazos River Auth. TX PCR PUT (Texas Util. Electric Co.) 5.00% 4/1/2001 31,500 31,509
Brazos River Auth. TX PCR PUT (Texas Util. Systems) 5.50% 6/19/2001 13,605 13,620
Dallas TX Waterworks & Sewer Rev. 7.75% 4/1/2003 10,000 10,720
Fort Worth TX Water & Sewer Rev. 5.90% 2/15/2001 2,900 2,913
Gulf Coast TX Waste Disposal Auth. PCR VRDO
(Amoco Oil Co. Project) 4.60% 11/2/2000 4,450 4,450
Gulf Coast TX Waste Disposal Auth. PCR VRDO
(Amoco Oil Co. Project) 4.75% 11/2/2000 1,600 1,600
Gulf Coast TX Waste Disposal Auth. PCR VRDO (Exxon Project) 4.60% 11/2/2000 2,600 2,600
Harris County TX Capital Appreciation GO 0.00% 10/1/2001 (1) 11,890 11,402
Harris County TX Capital Appreciation GO 0.00% 10/1/2002 (1) 12,370 11,314
Harris County TX Flood Control Dist. Capital Appreciation GO 0.00% 10/1/2002 (1) 10,000 9,146
Harris County TX GO 5.75% 12/15/2003 5,160 5,346
Harris County TX Health Fac. Dev. Corp. Hosp. Rev.
(Hermann Memorial Hosp. System Project) 5.00% 6/1/2001 (4) 1,500 1,505
Harris County TX Health Fac. Dev. Corp. Rev. (Christus Health) 5.00% 7/1/2001 11,100 11,114
Harris County TX Health Fac. Dev. Corp. Rev. VRDO
(St. Luke's Episcopal Hosp.) 4.65% 11/2/2000 20,000 20,000
Harris County TX Toll Road GO 6.50% 8/15/2002 (2)(Prere.) 14,000 14,758
Houston TX Refunding & Public Improvement GO 5.00% 3/1/2003 13,500 13,644
</TABLE>
17
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Lubbock TX Health Fac. Dev. Corp. Rev.
(St. Joseph Health System Obligated Group) 5.00% 7/1/2001 3,070 3,071
Matagorda County TX Navigation Dist. PCR PUT
(Central Power & Light) 4.90% 11/1/2001 7,700 7,670
Matagorda County TX Navigation Dist. PCR PUT
(Reliant Energy Inc.) 5.20% 11/1/2002 5,000 4,981
North East TX Independent School Dist. GO 6.50% 10/1/2002 3,350 3,475
Round Rock TX Independent School Dist. GO 6.50% 8/1/2002 1,745 1,805
San Antonio TX Electric & Gas Rev. 5.00% 2/1/2002 7,500 7,549
Tarrant County TX Water Control & Improvement Dist. 5.90% 3/1/2001 (Prere.) 7,000 7,036
Texas TRAN 5.25% 8/31/2001 50,000 50,344
Travis County TX GO 5.00% 3/1/2002 6,090 6,135
Univ. of Texas Board of Regents Rev. 7.00% 8/15/2001 (Prere.) 6,700 6,967
Univ. of Texas Permanent Univ. Fund Rev. 6.40% 7/1/2001 (Prere.) 5,000 5,165
-----------
$ 269,839
-----------
UTAH (1.0%)
Davis County UT TRAN 5.00% 12/29/2000 7,000 7,007
Salt Lake City & County UT Airport Rev. VRDO 4.35% 11/2/2000 LOC 1,600 1,600
Utah GO 5.50% 7/1/2002 4,000 4,070
Utah GO 5.50% 7/1/2001 8,050 8,113
-----------
$ 20,790
-----------
VIRGINIA (3.4%)
Culpepper County VA School Notes GO 4.65% 9/1/2002 6,400 6,401
Fairfax County VA Public Improvement GO 5.50% 6/1/2002 4,400 4,476
Louisa VA IDA Solid Waste & Sewer Disposal Rev. PUT
(VA Elec. & Power Co. Project) 4.90% 3/31/2002 9,000 8,998
Newport News VA IDA Rev. (Advanced Shipbuilding Carrier) 5.00% 9/1/2001 3,900 3,921
Virginia Commonwealth Transp. Board Federal Highway Notes 5.50% 10/1/2003 13,750 14,148
Virginia Port Auth. Commonwealth Port Fund Rev. 4.60% 7/1/2002 4,900 4,908
Virginia Public School Auth. GO 4.50% 8/1/2001 7,055 7,062
Virginia Public School Auth. GO 5.00% 8/1/2002 12,415 12,538
Virginia Public School Auth. Rev. 6.00% 1/1/2002 5,000 5,089
-----------
$ 67,541
-----------
WASHINGTON (1.1%)
King County WA GO 5.40% 12/1/2002 3,400 3,462
Spokane WA Regional Solid Waste Management System Rev. 6.25% 1/1/2003 (2) 7,945 8,174
Washington GO 6.40% 9/1/2003 7,000 7,173
Washington GO 7.00% 8/1/2002 4,000 4,165
-----------
$ 22,974
-----------
WEST VIRGINIA (0.3%)
West Virginia Water Dev. Auth. Rev. 7.70% 11/1/2000 (Prere.) 4,960 $ 5,059
-----------
WISCONSIN (3.7%)
Appleton WI Water System Rev. BAN 3.95% 7/1/2002 18,000 17,700
Milwaukee WI Metro. Sewer Dist. GO 7.00% 9/1/2001 5,000 5,105
Wisconsin GO 5.50% 5/1/2002 5,560 5,646
Wisconsin GO 5.80% 5/1/2001 4,000 4,029
Wisconsin GO 6.00% 5/1/2002 15,500 15,847
Wisconsin GO 6.00% 5/1/2003 4,000 4,142
Wisconsin GO 6.30% 5/1/2002 (Prere.) 5,000 5,136
Wisconsin Housing & EDA Home Ownership Rev. 3.95% 12/1/2000 11,000 10,996
Wisconsin Petroleum Inspection Fee Rev. 5.50% 7/1/2002 5,000 5,082
-----------
$ 73,683
-----------
</TABLE>
18
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WYOMING (2.5%)
Wyoming Community Dev. Auth. Housing Rev. 3.80% 6/1/2001 9,200 9,150
Wyoming Community Dev. Auth. Housing Rev. 4.25% 8/1/2001 15,000 14,969
Wyoming Community Dev. Auth. Housing Rev. 5.00% 9/1/2002 25,000 25,055
-----------
$ 49,174
-----------
------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $2,007,602) $2,005,775
------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-0.1%)
------------------------------------------------------------------------------------------------------------------------
Other Assets--Note B 32,094
Liabilities (33,422)
-----------
(1,328)
-----------
------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%)
------------------------------------------------------------------------------------------------------------------------
Applicable to 129,317,853 outstanding $.001 par value shares
of beneficial interest (unlimited authorization) $2,004,447
========================================================================================================================
NET ASSET VALUE PER SHARE $ 15.50
========================================================================================================================
*See Note A in Notes to Financial Statements.
For key to abbreviations and other references, see page 80.
</TABLE>
-------------------------------------------------------------------------------
AT OCTOBER 31, 2000, NET ASSETS CONSISTED OF:
-------------------------------------------------------------------------------
Amount Per
(000) Share
-------------------------------------------------------------------------------
Paid in Capital--Note E $2,007,504 $15.52
Undistributed Net Investment Income -- --
Accumulated Net Realized Loss--Note E (1,230) (.01)
Unrealized Depreciation--Note F (1,827) (.01)
-------------------------------------------------------------------------------
NET ASSETS $2,004,447 $15.50
===============================================================================
19
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (99.5%)
------------------------------------------------------------------------------------------------------------------------
ALABAMA (1.2%)
Alabama GO 5.50% 10/1/2002 $ 6,500 $ 6,627
Huntsville AL Health Care Fac. Auth. PUT 4.65% 6/1/2005 (1) 26,050 25,679
-----------
$ 32,306
-----------
ALASKA (2.0%)
Alaska Housing Finance Corp. (State Capital Project) 5.50% 6/1/2004 (1) 7,245 7,439
Anchorage AK GO 4.70% 8/1/2001 (1) 5,000 5,011
North Slope Borough AK Capital Appreciation GO 0.00% 1/1/2003 (1) 19,000 17,144
North Slope Borough AK Capital Appreciation GO 0.00% 6/30/2004 (4) 8,955 7,512
North Slope Borough AK Capital Appreciation GO 0.00% 6/30/2006 (1) 19,250 14,583
North Slope Borough AK Capital Appreciation GO 0.00% 6/30/2008 (1) 6,850 4,670
-----------
$ 56,359
-----------
ARIZONA (2.7%)
Arizona Transp. Board Excise Tax Rev.
(Maricopa County Regional Area Road) 5.00% 7/1/2002 8,880 8,959
Arizona Transp. Board Excise Tax Rev.
(Maricopa County Regional Area Road) 5.00% 7/1/2004 15,165 15,407
Arizona Transp. Board Excise Tax Rev.
(Maricopa County Regional Area Road) 6.00% 7/1/2002 (2) 15,185 15,563
Arizona Transp. Board Highway Rev. 5.50% 7/1/2004 15,040 15,568
Maricopa County AZ Community College Dist. Project GO 5.25% 7/1/2003 8,350 8,520
Phoenix AZ Civic Improvement Corp. Waste Water
System Lease Rev. 6.125% 7/1/2003 (Prere.) 10,000 10,597
-----------
$ 74,614
-----------
CALIFORNIA (2.8%)
California Dept. of Water Rev. (Central Valley Project) 8.25% 12/1/2001 4,790 5,010
California Dept. of Water Rev. (Central Valley Project) 8.25% 12/1/2002 5,060 5,479
California Dept. of Water Rev. (Central Valley Project) 8.25% 12/1/2005 5,685 6,722
California GO 7.50% 11/1/2003 (3) 6,000 6,572
Los Angeles CA Dept. of Water & Power Waterworks Rev. 9.00% 5/15/2002 9,135 9,780
Los Angeles CA Dept. of Water & Power Waterworks Rev. 9.00% 5/15/2003 5,355 5,961
Los Angeles County CA Public Works Auth. Rev. 6.00% 10/1/2003 12,010 12,627
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2002 20,590 19,446
Univ. of California Rev. (Multiple Purpose Dist. Project) 10.00% 9/1/2001 (2) 5,500 5,774
-----------
$ 77,371
----------
COLORADO (5.0%)
Arapahoe County CO Capital Improvement
Trust Fund Highway Rev. 0.00% 8/31/2005 (Prere.) 406,160 97,243
Arapahoe County CO Capital Improvement
Trust Fund Highway Rev. 7.00% 8/31/2005 (Prere.) 17,000 19,190
Denver CO City & County Airport Rev. 5.50% 11/15/2002 (2) 3,000 3,053
Denver CO City & County Airport Rev. 5.50% 11/15/2003 (2) 3,000 3,070
Denver CO City & County Airport Rev. 5.50% 11/15/2005 (2) 9,375 9,678
Denver CO City & County Airport Rev. 7.50% 11/15/2002 6,080 6,357
-----------
$ 138,591
-----------
CONNECTICUT (1.7%)
Connecticut GO 6.00% 11/15/2004 7,500 7,858
Connecticut GO 6.25% 5/15/2005 10,000 10,694
Connecticut GO 6.25% 5/15/2005 (ETM) 80 86
Connecticut GO 9.875% 3/1/2001 6,750 6,870
Connecticut Special Assessment Second Injury Fund Rev. 5.00% 1/1/2001 4,230 4,234
</TABLE>
20
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Connecticut Special Assessment Unemployment
Compensation Rev. 5.50% 5/15/2001 (2) $ 13,455 $ 13,539
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 6.25% 10/1/2002 (3) 4,000 4,138
-----------
$ 47,419
-----------
DELAWARE (0.2%)
Delaware GO 5.00% 1/1/2002 5,085 $ 5,122
-----------
DISTRICT OF COLUMBIA (1.5%)
District of Columbia GO 5.00% 6/1/2002 (1) 5,710 5,749
District of Columbia GO 5.00% 6/1/2003 (1) 5,995 6,053
District of Columbia GO 5.50% 6/1/2002 15,000 15,171
District of Columbia GO 5.80% 6/1/2004 (3) 6,605 6,853
District of Columbia Rev. (George Washington Univ.) 5.50% 9/15/2004 (1) 4,000 4,125
Metro. Washington DC Airports Auth. General Airport Rev. 5.50% 10/1/2006 4,745 4,934
-----------
$ 42,885
-----------
FLORIDA (1.5%)
Florida Board of Educ. Rev. (Capital Outlay) 6.50% 6/1/2002 4,505 4,646
Florida Board of Educ. Rev. (Capital Outlay) 6.50% 6/1/2004 5,565 5,927
Florida Dept. of General Services Rev.
(Dept. of Environmental Protection Preservation-2000) 6.00% 7/1/2004 (2) 10,815 11,353
Lakeland FL Electric & Water Rev. 6.30% 10/1/2002 (4) 5,000 5,170
Lee County FL School Board COP 6.00% 8/1/2002 (4) 2,750 2,821
Orange County FL Health Fac. Auth. Rev.
(Orlando Regional Healthcare) 6.00% 10/1/2004 (1) 1,160 1,215
Orange County FL Health Fac. Auth. Rev.
(Orlando Regional Healthcare) 6.00% 10/1/2004 (1)(ETM) 2,815 2,965
St. Lucie County FL PCR VRDO
(Florida Power & Light Co. Project) 4.60% 11/2/2000 3,100 3,100
Tampa FL Hillsborough County Expressway Auth. Rev. 6.50% 7/1/2003 (2) 4,770 5,012
-----------
$ 42,209
-----------
GEORGIA (3.9%)
Atlanta GA Airport Fac. Rev. Capital Appreciation 0.00% 9/19/2006 (1) 10,000 5,888
Burke County GA Dev. Auth. PUT
(Georgia Power Co. Plant Vogtle Project) 4.53% 3/1/2002 22,000 21,867
Emory Colleges & Univ. Auth. Georgia Rev.
(Emory Univ. Project) 5.50% 11/1/2006 8,000 8,395
Georgia GO 5.75% 3/1/2002 5,600 5,699
Georgia GO 6.00% 7/1/2003 8,300 8,620
Georgia GO 6.00% 7/1/2007 10,580 11,402
Georgia GO 7.20% 3/1/2002 3,000 3,107
Georgia GO 7.25% 7/1/2002 5,620 5,872
Georgia GO 7.25% 9/1/2002 8,160 8,562
Georgia GO 7.40% 8/1/2002 12,360 12,969
Metro. Atlanta GA Rapid Transp. Auth. Sales Tax Rev. 6.35% 7/1/2004 3,560 3,669
Newton County GA School Dist. GO 5.25% 8/1/2003 5,765 5,877
Newton County GA School Dist. GO 5.50% 8/1/2004 6,185 6,389
-----------
$ 108,316
-----------
HAWAII (3.4%)
Hawaii GO 5.25% 4/1/2004 (1) 14,600 14,919
Hawaii GO 5.50% 4/1/2004 (1) 11,920 12,274
Hawaii GO 5.50% 4/1/2005 (1) 13,630 14,115
</TABLE>
21
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hawaii GO 5.70% 10/1/2004 (1) $ 10,000 $ 10,408
Hawaii GO 6.00% 4/1/2003 (1) 10,185 10,524
Hawaii GO 6.25% 3/1/2005 (3) 8,585 9,128
Hawaii GO 7.75% 2/1/2002 9,600 9,975
Honolulu HI City & County GO 5.25% 11/1/2003 (3) 13,135 13,401
-----------
$ 94,744
-----------
ILLINOIS (6.6%)
Chicago IL GO 6.25% 10/31/2002 (1) 4,250 4,392
Chicago IL O'Hare International Airport Rev. 5.50% 1/1/2006 (2) 16,120 16,585
Chicago IL Public Building Comm. Board of Educ. GO 5.125% 2/1/2003 (3) 7,500 7,594
Chicago IL School Finance Auth. GO 5.00% 6/1/2003 (3) 25,190 25,450
Chicago IL School Finance Auth. GO 5.10% 6/1/2004 (3) 10,000 10,160
Illinois Dev. Finance Auth. PCR PUT (Commonwealth Edison) 4.40% 12/1/2006 (2) 19,000 18,483
Illinois Dev. Finance Auth. Rev. (Provena Health) 5.50% 5/15/2004 (1) 4,740 4,870
Illinois Dev. Finance Auth. Rev. (Provena Health) 5.50% 5/15/2005 (1) 2,500 2,580
Illinois Dev. Finance Auth. Rev. (Provena Health) 5.50% 5/15/2006 (1) 2,000 2,071
Illinois Educ. Fac. Auth. Rev. PUT (Univ. of Chicago) 4.40% 7/1/2004 6,225 6,044
Illinois GO 5.25% 8/1/2003 3,515 3,581
Illinois Health Fac. Auth. Rev.
(Advocate Health Care Network) 5.25% 8/15/2005 3,700 3,731
Illinois Health Fac. Auth. Rev.
(Alexian Brothers Health System) 5.00% 1/1/2001 4,815 4,816
Illinois Health Fac. Auth. Rev.
(Hosp. Sisters Services Inc.) 5.00% 6/1/2003 (1) 2,895 2,924
Illinois Health Fac. Auth. Rev.
(Hosp. Sisters Services Inc.) 5.00% 6/1/2004 (1) 3,080 3,117
Illinois Health Fac. Auth. Rev.
(Hosp. Sisters Services Inc.) 5.00% 6/1/2006 (1) 4,400 4,455
Illinois Health Fac. Auth. Rev.
(Hosp. Sisters Services Inc.) 5.25% 6/1/2007 (1) 5,270 5,402
Illinois Health Fac. Auth. Rev. PUT
(Edgewater Medical Center) 4.70% 7/1/2004 LOC 10,990 10,869
Illinois Sales Tax Rev. 5.60% 6/15/2004 4,000 4,141
Illinois Student Assistance Comm. Student Loan Rev. 5.70% 3/1/2006 4,000 4,092
Metro. Pier & Exposition Auth.
Illinois Dedicated State Tax Rev. 0.00% 6/15/2008 (3) 6,670 4,578
Metro. Pier & Exposition Auth.
Illinois Dedicated State Tax Rev. 0.00% 6/15/2008 (Prere.) 1,220 838
Metro. Pier & Exposition Auth.
Illinois Dedicated State Tax Rev. 6.50% 6/15/2003 (Prere.) 29,455 31,427
-----------
$ 182,200
-----------
INDIANA (0.5%)
Indianapolis IN Airport Auth. Rev. 5.00% 7/1/2004 (3) 5,000 5,043
Richmond IN Hosp. Auth. Rev. PUT
(Reid Hosp. and Health Care Services) 4.35% 1/1/2002 10,000 9,938
-----------
$ 14,981
-----------
KANSAS (0.9%)
Burlington KS Environmental Rev. Refunding PUT
(Kansas City Power & Light Co. Project) 4.35% 9/1/2001 15,810 15,724
Kansas Dept. of Transp. Highway Rev. 5.50% 9/1/2006 6,000 6,279
Unified Govt. of Wyandotte County Kansas City KS
Util. System Improvement Refunding Rev. 5.00% 9/1/2004 (1) 2,500 2,543
-----------
$ 24,546
KENTUCKY (0.7%)
Jefferson County KY Capital Appreciation GO 0.00% 8/15/2004 (4) 3,980 3,325
Jefferson County KY Capital Appreciation GO 0.00% 8/15/2005 (4) 4,780 3,800
Kentucky Property & Building Comm. Rev. (Project #59) 6.00% 11/1/2002 2,000 2,058
Kentucky Property & Building Comm. Rev. (Project #68) 6.00% 10/1/2008 10,000 10,858
-----------
$ 20,041
-----------
LOUISIANA (2.8%)
Jefferson Parish LA Sales Tax Dist. Special Sales Tax Rev. 5.50% 12/1/2004 (4) 5,145 5,321
Jefferson Parish LA Sales Tax Dist. Special Sales Tax Rev. 5.50% 12/1/2005 (4) 3,790 3,941
Louisiana GO 6.00% 8/1/2001 (3) 20,325 20,566
</TABLE>
22
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<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Louisiana Public Fac. Auth. Hosp. Rev.
(Franciscan Missionaries) 5.50% 7/1/2005 (4) $ 5,865 $ 6,069
New Orleans LA GO 6.50% 10/1/2001 (2) 10,655 10,852
St. Charles Parish LA PCR PUT (Entergy Inc.) 4.85% 6/1/2002 18,000 17,878
St. Charles Parish LA PCR PUT (Entergy Inc.) 5.35% 10/1/2003 14,775 14,735
-----------
$ 79,362
-----------
MAINE (0.1%)
Maine Health & Higher Educ. Fac. Auth. Rev.
(Sabasticook Hosp.) 10.10% 7/1/2001(Prere.) 4,200 $ 4,438
-----------
MASSACHUSETTS (2.5%)
Massachusetts Educ. Finance Auth. Educ. Loan Rev. 4.40% 12/1/2005 2,345 2,303
Massachusetts Educ. Finance Auth. Educ. Loan Rev. 4.50% 12/1/2006 2,835 2,790
Massachusetts Educ. Finance Auth. Educ. Loan Rev. 4.55% 12/1/2007 3,815 3,738
Massachusetts GO 5.75% 10/1/2008 6,710 7,194
Massachusetts GO 6.25% 7/1/2002 12,500 12,873
Massachusetts GO 6.875% 7/1/2001 (Prere. 17,400 18,032
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2001 3,795 3,781
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2004 2,500 2,415
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2005 3,930 3,748
Massachusetts Health & Educ. Fac. Auth. Rev. PUT
(Fairview Extended Care) 4.55% 7/14/2002 (1) 3,450 3,429
Massachusetts Water Resources Auth. 6.875% 12/1/2001 (Prere.) 9,945 10,404
-----------
$ 70,707
-----------
MICHIGAN (6.3%)
Detroit MI GO 5.70% 5/1/2001 (2) 5,000 5,033
Greater Detroit MI Resource Recovery Auth. Rev. 5.00% 12/13/2000 (2) 6,290 6,294
Greater Detroit MI Resource Recovery Auth. Rev. 5.50% 12/13/2001 (2) 5,000 5,059
Greater Detroit MI Resource Recovery Auth. Rev. 5.50% 12/13/2003 (2) 17,995 18,507
Greater Detroit MI Resource Recovery Auth. Rev. 5.50% 12/13/2004 (2) 12,990 13,443
Michigan Building Auth. Rev. 5.25% 10/15/2003 13,890 14,175
Michigan Building Auth. Rev. 5.25% 10/15/2004 19,885 20,383
Michigan Building Auth. Rev. 6.20% 10/1/2002 5,450 5,621
Michigan Building Auth. Rev. 6.30% 10/1/2003 (4) 7,800 8,072
Michigan Building Auth. Rev. 6.50% 10/1/2004 14,500 15,509
Michigan GO (Environmental Protection Program) 6.00% 11/1/2002 4,845 4,994
Michigan Hosp. Finance Auth. (Genesys Regional Medical) 5.25% 10/1/2003 2,500 2,549
Michigan Hosp. Finance Auth. (Genesys Regional Medical) 5.50% 10/1/2005 6,655 6,907
Michigan Muni. Bond Auth. Rev. (Clean Water Revolving Fund) 5.50% 10/1/2006 7,575 7,904
Michigan Muni. Bond Auth. Rev. (Clean Water Revolving Fund) 5.50% 10/1/2007 9,405 9,850
Michigan Strategic Fund Limited Obligation Rev. PUT
(Detroit Edison) 4.73% 9/1/2001 10,000 9,993
Royal Oak MI Hosp. Financial Auth. (William Beaumont Hosp.) 6.75% 1/1/2001 (Prere.) 12,450 12,745
Wayne Charter County MI Airport Rev.
(Detroit Metro. Wayne County) 5.25% 12/1/2006 (1) 6,620 6,772
-----------
$ 173,810
-----------
MINNESOTA (1.1%)
Minneapolis MN Community Dev. Agency Tax Increment Rev. 0.00% 9/1/2003 (1) 5,875 5,150
Minnesota GO 5.50% 6/1/2006 8,730 9,121
Minnesota GO 6.00% 8/1/2004 5,000 5,256
</TABLE>
23
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Minnesota GO 6.00% 8/1/2005 $ 8,255 $ 8,764
Minnesota Public Fac. Water PCR 5.00% 3/1/2002 2,620 2,641
-----------
$ 30,932
-----------
MISSISSIPPI (0.2%)
Mississippi GO 7.00% 5/1/2004 4,555 $ 4,908
-----------
MONTANA (0.9%)
Forsyth MT PCR PUT (Portland General Electric Co.) 4.60% 5/1/2003 24,410 $ 23,931
-----------
NEBRASKA (0.2%)
Nebraska Public Power Dist. Rev. Power Supply System 6.10% 1/1/2003 (Prere.) 5,500 $ 5,782
-----------
NEVADA (1.2%)
Clark County NV Passenger Fac. Charge Rev.
(McCarran International Airport) 6.25% 7/1/2004 (1) 8,240 8,642
Clark County NV Passenger Fac. Charge Rev.
(McCarran International Airport) 6.25% 7/1/2005 (1) 4,310 4,563
Clark County NV School Dist. GO 6.00% 6/15/2003 (3) 4,830 5,002
Clark County NV School Dist. GO 9.75% 6/1/2001 (1) 10,000 10,300
Nevada GO 5.00% 7/1/2004 5,030 5,102
-----------
$ 33,609
-----------
NEW HAMPSHIRE (1.6%)
New Hampshire Business Finance Auth. PCR PUT
(United Illuminating) 4.55% 2/1/2004 33,000 32,220
New Hampshire Business Finance Auth. PCR PUT
(United Illuminating) 5.40% 12/1/2002 12,000 12,044
-----------
$ 44,264
-----------
NEW JERSEY (1.9%)
New Jersey Transit Corp. Capital Grant Anticipation Notes 5.00% 2/1/2003 (2) 6,245 6,261
New Jersey Transit Corp. COP 5.50% 9/15/2008 (2) 25,000 26,285
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2003 (2) 5,000 5,190
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2005 (2) 10,000 10,598
Passaic Valley NJ Sewer System Rev. 5.70% 12/1/2002 (Prere.) 2,475 2,562
Passaic Valley NJ Sewer System Rev. 5.70% 12/1/2003 (2) 1,505 1,558
-----------
$ 52,454
-----------
NEW MEXICO (0.6%)
Albuquerque NM Water & Sewer System Rev. 5.00% 7/1/2004 4,500 4,570
Hurley NM PCR VRDO (Kennecott Sante Fe Corp.) 4.60% 11/2/2000 4,400 4,400
New Mexico Educ. Assistance Funding Student Loan Rev. 6.60% 3/1/2005 7,110 7,368
-----------
$ 16,338
-----------
NEW YORK (10.1%)
Hempstead Town NY IDA Resource Recovery
(American Fuel Co.) 4.40% 12/1/2001 (1) 6,810 6,811
Long Island NY Power Auth. Electric System Rev. 5.25% 12/1/2004 (2) 15,000 15,426
Long Island NY Power Auth. Electric System Rev. 5.25% 12/1/2005 (2) 16,000 16,517
Muni. Assistance Corp. for New York City NY Rev. 5.50% 7/1/2002 5,500 5,603
Muni. Assistance Corp. for New York City NY Rev. 5.75% 7/1/2003 6,100 6,309
Muni. Assistance Corp. for New York City NY Rev. 6.00% 7/1/2004 9,500 9,989
Muni. Assistance Corp. for New York City NY Rev. 6.00% 7/1/2005 10,370 11,013
Nassau County NY GO 7.00% 3/1/2002 13,965 14,349
Nassau County NY GO 7.00% 3/1/2003 7,000 7,320
New York City NY GO 7.50% 2/1/2004 5,250 5,497
New York City NY GO 8.00% 8/1/2003 7,500 8,159
</TABLE>
24
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York City NY IDA (USTA National Tennis Center Project) 7.75% 11/15/2000 (4) $ 3,125 $ 3,129
New York City NY IDA (USTA National Tennis Center Project) 7.75% 11/15/2001 (4) 4,380 4,528
New York City NY IDA (USTA National Tennis Center Project) 7.75% 11/15/2002 (4) 3,100 3,297
New York State Comm. General Services COP 5.00% 9/1/2002 4,050 4,084
New York State Dormitory Auth. Rev. (Bronx/Lebanon Hosp.) 5.00% 2/15/2002 5,000 5,029
New York State Dormitory Auth. Rev. (Brookdale Hosp.) 5.00% 2/15/2002 5,445 5,477
New York State Dormitory Auth. Rev. (Brookdale Hosp.) 5.50% 2/15/2004 6,040 6,187
New York State Dormitory Auth. Rev. (North General Hosp.) 5.00% 2/15/2002 4,710 4,737
New York State Dormitory Auth. Rev. (North General Hosp.) 5.50% 2/15/2003 4,945 5,042
New York State Dormitory Auth. Rev. (Presbyterian Hosp.) 5.50% 2/15/2004 (2) 4,500 4,632
New York State Dormitory Auth. Rev. (State Univ.) 5.25% 5/15/2003 6,255 6,368
New York State Dormitory Auth. Rev. (State Univ.) 5.50% 5/15/2003 5,300 5,430
New York State Energy Research & Dev. Auth. PCR PUT
(Central Hudson Gas & Electric Corp.) 4.20% 12/1/2003 (2) 7,390 7,206
New York State Environmental Fac. PCR
(New York City Water Finance Auth.) 5.50% 6/15/2003 (1) 3,000 3,083
New York State Environmental Fac. Rev.
(Clean Water & Drinking Revolving Funds) 5.00% 6/15/2003 4,285 4,352
New York State Environmental Fac. Rev.
(Clean Water & Drinking Revolving Funds) 5.00% 6/15/2004 4,000 4,075
New York State Environmental Fac. Rev.
(Riverbank State Park) 7.375% 4/1/2002(Prere.) 6,800 7,214
New York State Housing Finance Agency Rev.
(Nursing Home & Health Care Project) 4.40% 11/1/2004 (1) 8,900 8,858
New York State Housing Finance Agency Rev.
(Nursing Home & Health Care Project) 4.50% 11/1/2005 (1) 7,000 6,975
New York State Housing Finance Agency Rev.
(Nursing Home & Health Care Project) 4.60% 11/1/2006 (1) 4,380 4,373
New York State Local Govt. Assistance Corp. 7.00% 4/1/2001 (Prere.) 6,875 7,089
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 6.00% 4/1/2002 (1) 11,965 12,235
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 6.00% 4/1/2004 (1) 11,195 11,735
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 6.25% 4/1/2004 (1) 10,185 10,756
New York State Urban Dev. Corp. Rev.
(Community Enhancement Fac.) 5.00% 4/1/2004 8,570 8,680
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 7.50% 1/1/2001 (Prere. 7,100 7,279
Suffolk County NY Water Auth. Water System Rev. 5.25% 6/1/2004 (2)(Prere.) 10,000 10,279
-----------
$ 279,122
-----------
NORTH CAROLINA (0.1%)
Mecklenberg County NC GO 5.90% 3/1/2005 4,075 $ 4,205
-----------
OHIO (4.6%)
Butler County OH Transp. Improvement Dist. 5.00% 4/1/2003 (4) 3,000 3,037
Cleveland OH Water Works Rev. 6.25% 1/1/2002 (2)(Prere.) 4,245 4,413
Ohio Air Quality Dev. Auth. PCR PUT (Cleveland Electric) 4.60% 10/1/2003 4,500 4,380
Ohio Air Quality Dev. Auth. VRDO
(Cincinnati Gas & Electric Co. Project) 4.60% 11/2/2000 LOC 1,600 1,600
Ohio Common Schools Capital Fac. GO 5.75% 6/15/2005 5,810 6,105
Ohio Higher Educ. Capital Fac. GO 5.75% 5/1/2007 6,930 7,369
Ohio Highway Capital Improvements GO 5.50% 5/1/2006 22,500 23,530
Ohio Turnpike Comm. Turnpike Rev. 5.75% 2/15/2004 (Prere.) 14,250 15,034
</TABLE>
25
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ohio Water Dev. Auth. PCR PUT (Cleveland Electric) 4.60% 10/1/2003 $ 12,255 $ 11,945
Ohio Water Dev. Auth. PCR PUT (Cleveland Electric) 5.58% 6/15/2004 21,700 21,614
Ohio Water Dev. Auth. PCR PUT (Ohio Edison Co.) 5.40% 12/1/2001 20,000 19,987
Ohio Water Dev. Auth. PCR PUT (Toledo Edison) 5.25% 9/1/2002 10,000 9,856
-----------
$ 128,870
-----------
OKLAHOMA (0.7%)
Oklahoma Dev. Finance Auth. Rev. (Hillcrest Hosp.) 4.80% 8/15/2006 2,000 1,783
Oklahoma Dev. Finance Auth. Rev. (Hillcrest Hosp.) 4.90% 8/15/2007 2,195 1,909
Oklahoma Dev. Finance Auth. Rev. (Hillcrest Hosp.) 5.00% 8/15/2008 1,500 1,284
Tulsa County OK Criminal Justice Auth. Sales Tax Rev. 5.25% 3/1/2001 (2) 6,525 6,542
Tulsa County OK Criminal Justice Auth. Sales Tax Rev. 5.25% 9/1/2001 (2) 6,960 7,004
-----------
$ 18,522
-----------
OREGON (0.2%)
Port Auth. of Portland OR Airport Rev.
(Portland International Airport) 5.00% 7/1/2003 (3) 5,035 $ 5,085
-----------
PENNSYLVANIA (4.5%)
Beaver County PA IDA PCR PUT (Ohio Edison Project) 4.65% 6/1/2004 10,000 9,711
Delaware County PA IDA PCR PUT (PECO Energy Co. Project) 5.20% 10/1/2004 11,000 10,961
Delaware County PA IDA Resource Recovery Rev.
(Browning Ferris) 5.50% 1/1/2002 1,865 1,847
Pennsylvania GO 5.00% 3/1/2003 6,250 6,328
Pennsylvania GO 5.25% 10/15/2004 13,850 14,217
Pennsylvania Higher Educ. Fac. Health Services
(Allegheny/Delaware Valley) 5.00% 11/15/2002 (1) 7,990 8,047
Pennsylvania Intergovernmental Cooperation Auth. Rev.
(Philadelphia Funding Program) 5.00% 6/15/2003 (3) 5,000 5,067
Pennsylvania Turnpike Comm. Rev. 5.60% 12/1/2005 (3) 6,575 6,812
Philadelphia PA Airport Rev.
(Philadelphia Airport System Project) 5.25% 6/15/2001 (3) 4,590 4,614
Philadelphia PA Airport Rev.
(Philadelphia Airport System Project) 6.00% 6/15/2005 (3) 4,835 5,069
Philadelphia PA Gas Works Rev. 7.00% 7/1/2002 (8) 4,035 4,194
Philadelphia PA GO 5.125% 5/15/2003 (3) 8,000 8,119
Philadelphia PA GO 6.00% 11/15/2000 (3) 13,000 13,008
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Jefferson Health System) 5.00% 5/15/2002 (2) 2,905 2,926
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Jefferson Health System) 5.50% 5/15/2003 (2) 1,425 1,455
Philadelphia PA Ind. Dev. Airport Rev.
(Philadelphia Airport System Project) 4.50% 7/1/2002 (3) 2,205 2,201
Philadelphia PA School Dist. GO 5.25% 3/1/2004 (1) 9,150 9,362
Philadelphia PA Water & Waste Water Rev. 6.25% 8/1/2002 (1) 5,450 5,612
Pittsburgh PA GO 5.00% 3/1/2003 (1) 5,000 5,055
-----------
$ 124,605
-----------
RHODE ISLAND (0.8%)
Rhode Island GO 6.00% 8/1/2003 (1) 9,665 10,045
Rhode Island GO 6.00% 8/1/2004 (1) 11,345 11,925
-----------
$ 21,970
-----------
SOUTH CAROLINA (1.0%)
South Carolina Capital Improvement GO 5.00% 8/1/2004 4,950 5,041
South Carolina GO 5.10% 2/1/2004 3,940 4,015
</TABLE>
26
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
South Carolina Jobs Econ. Dev. Auth. Hosp. Improvement Rev.
(Palmetto Health Alliance) 5.25% 12/15/2000 $ 1,425 $ 1,425
South Carolina Jobs Econ. Dev. Auth. Hosp. Improvement Rev.
(Palmetto Health Alliance) 5.75% 12/15/2001 1,470 1,471
South Carolina Jobs Econ. Dev. Auth. Hosp. Improvement Rev.
(Palmetto Health Alliance) 6.70% 12/15/2006 2,640 2,690
South Carolina Jobs Econ. Dev. Auth. Hosp. Improvement Rev.
(Palmetto Health Alliance) 7.00% 12/15/2004 3,245 3,352
South Carolina Jobs Econ. Dev. Auth. Hosp. Improvement Rev.
(Palmetto Health Alliance) 7.00% 12/15/2005 3,500 3,624
South Carolina Jobs Econ. Dev. Auth. Hosp. Improvement Rev.
(Palmetto Health Alliance) 7.00% 12/15/2007 5,265 5,450
-----------
$ 27,068
-----------
TENNESSEE (0.9%)
Johnson City TN Health & Higher Educ. Fac. Board Rev.
(Johnson City Medical Center) 5.00% 7/1/2005 (1) 4,265 4,329
Knoxville TN GO 5.00% 6/1/2002 20,000 20,160
-----------
$ 24,489
-----------
TEXAS (13.3%)
Austin TX Combined Util. System Rev. 5.60% 5/15/2005 (1)(Prere.) 15,000 15,608
Austin TX Util. System Rev. 5.375% 11/15/2005 6,495 6,616
Brazos River TX Auth. PCR PUT (Texas Util. Systems) 5.50% 6/19/2001 25,000 25,028
Dallas-Fort Worth TX International Airport Fac.
Improvement Corp. Rev. (American Airlines, Inc.) 5.95% 11/1/2003 24,300 24,432
El Paso County TX Hosp. Dist. GO 0.00% 8/15/2001 (1) 2,260 2,178
El Paso County TX Hosp. Dist. GO 0.00% 8/15/2002 (1) 2,260 2,075
El Paso County TX Hosp. Dist. GO 0.00% 8/15/2003 (1) 2,260 1,976
Harris County TX Health Fac. Dev. Corp. Hosp. Rev.
(Memorial Hosp.) 5.00% 6/1/2001 (1) 5,835 5,853
Harris County TX Health Fac. Dev. Corp. Rev.
(Christus Health) 5.00% 7/1/2002 11,680 11,672
Harris County TX Health Fac. Dev. Corp. Rev.
(Christus Health) 5.00% 7/1/2003 12,250 12,216
Harris County TX Toll Road GO 6.125% 8/15/2004 (Prere.) 6,375 6,835
Harris County TX Toll Road GO 6.50% 8/15/2002 (2)(Prere.) 5,765 6,077
Houston TX Airport System Rev. 6.00% 7/1/2008 (4) + 6,385 6,812
Houston TX GO 5.00% 3/1/2003 20,000 20,227
Houston TX GO 5.50% 3/1/2004 8,620 8,875
Houston TX GO 5.90% 3/1/2002 (Prere.) 980 998
Houston TX GO 5.90% 3/1/2003 2,495 2,539
Houston TX Hotel Occupancy Tax Rev. 6.00% 7/1/2001 (4) 4,000 4,041
Houston TX Hotel Occupancy Tax Rev. 6.00% 7/1/2002 (4) 2,250 2,302
Houston TX Independent School Dist. 0.00% 2/15/2006 4,000 3,060
Houston TX Independent School Dist. 6.40% 8/15/2001 (Prere.) 4,095 4,160
Houston TX Refunding & Public Improvement GO 5.00% 3/1/2004 12,000 12,161
Houston TX Water & Sewer System Rev. 0.00% 12/1/2000 (2) 6,130 6,107
Houston TX Water & Sewer System Rev. 5.40% 12/1/2000 8,000 8,006
Houston TX Water & Sewer System Rev. 5.50% 12/1/2007 (4) 12,500 13,119
Houston TX Water & Sewer System Rev. 6.20% 12/5/2005 (Prere.) 9,075 9,739
Lewisville TX Independent School Dist. 6.55% 8/15/2003 (ETM) 5,000 5,269
Lubbock TX Health Fac. Dev. Corp. Rev.
(St. Joseph Health System Obligated Group) 5.00% 7/1/2003 6,505 6,484
Lubbock TX Health Fac. Dev. Corp. Rev.
(St. Joseph Health System Obligated Group) 5.00% 7/1/2004 5,940 5,904
Lubbock TX Health Fac. Dev. Corp. Rev.
(St. Joseph Health System Obligated Group) 5.00% 7/1/2005 7,610 7,538
</TABLE>
27
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Matagorda County TX Navigation Dist. PCR PUT
(Central Power & Light) 4.90% 11/1/2001 $ 15,000 $ 14,942
Matagorda County TX Navigation Dist. PCR PUT
(Central Power & Light) 4.95% 11/1/2001 4,000 3,990
Matagorda County TX Navigation Dist. PCR PUT
(Reliant Energy Inc.) 5.20% 11/1/2002 27,000 26,899
North East TX Independent School Dist. GO 6.50% 10/1/2005 4,075 4,412
North East TX Independent School Dist. GO 6.50% 10/1/2006 4,350 4,762
San Antonio TX GO 5.40% 8/1/2002 (Prere.) 725 737
San Antonio TX GO 5.40% 8/1/2004 6,770 6,865
San Antonio TX Independent School Dist. GO 6.00% 8/15/2004 4,165 4,377
Spring Branch TX Independent School Dist. GO 0.00% 2/1/2005 5,725 4,663
Spring Branch TX Independent School Dist. GO 0.00% 2/1/2006 5,710 4,419
Texas A&M Univ. Rev. Financing System 6.00% 5/15/2004 7,665 8,024
Texas Muni. Power Agency Rev. 5.25% 9/1/2004 (1) 5,300 5,427
Texas Muni. Power Agency Rev. 5.80% 9/1/2003 (1) 6,750 6,979
Texas Public Finance Auth. Refunding 5.50% 10/1/2006 4,000 4,180
Texas Water Dev. Financial Assistance Refunding GO 5.00% 8/1/2004 4,735 4,793
Texas Water Dev. Financial Assistance Refunding GO 5.00% 8/1/2005 3,405 3,442
Univ. of Texas Permanent Univ. Fund Rev. 6.10% 7/1/2004 11,555 11,837
-----------
$ 368,655
-----------
UTAH (1.5%)
Intermountain Power Agency UT Power Supply Rev. 0.00% 7/1/2002 7,825 7,222
Intermountain Power Agency UT Power Supply Rev. 0.00% 7/1/2002 (2) 8,490 7,857
Utah GO 5.50% 7/1/2003 20,000 20,516
Utah Water Finance Agency Rev. 4.70% 10/1/2001 (1) 5,000 5,014
-----------
$ 40,609
-----------
VIRGINIA (1.1%)
Louisa VA IDA Solid Waste & Sewer Disposal Rev. PUT
(Virginia Electric & Power Co. Project) 4.90% 3/31/2002 5,000 4,999
Virginia Commonwealth Transp. Board Federal Highway Rev. 5.75% 10/1/2007 5,000 5,331
Virginia Commonwealth Transp. Board Transp. Rev.
(U.S. Route 58 Corridor) 5.25% 5/15/2003 4,650 4,744
Virginia Port Auth. Rev. 4.75% 7/1/2004 8,210 8,242
Virginia Public School Auth. GO 5.00% 8/1/2003 6,200 6,290
-----------
$ 29,606
-----------
WASHINGTON (4.4%)
King & Snohomish Counties WA School
Dist. No. 417 Northshore GO 6.30% 6/1/2004 (Prere.) 4,100 4,337
King County WA School Dist. GO 6.30% 12/1/2003 5,375 5,610
King County WA Sewer GO 6.25% 1/1/2004(Prere.) 10,000 10,675
Port Seattle WA Passenger Fac. Charge Rev. 5.00% 12/1/2003 (2) 3,000 3,025
Port Seattle WA Passenger Fac. Charge Rev. 5.00% 12/1/2004 (2) 7,465 7,530
Spokane WA Regional Solid Waste Management System Rev. 6.25% 1/1/2004 (2) 8,440 8,775
Spokane WA Regional Solid Waste Management System Rev. 6.25% 1/1/2005 (2) 8,975 9,416
Spokane WA Regional Solid Waste Management System Rev. 6.50% 1/1/2007 (2) 8,650 9,307
Washington GO 6.00% 7/1/2005 6,500 6,872
Washington GO 6.25% 9/1/2009 5,000 5,067
Washington GO 6.30% 9/1/2002 4,700 4,814
Washington GO 6.50% 7/1/2002 5,035 5,197
Washington GO 6.625% 9/1/2006 4,000 4,106
</TABLE>
28
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Washington GO 6.75% 6/1/2001 (Prere.) $ 20,000 $ 20,277
Washington Motor Vehicles Fuel Tax GO 6.50% 9/1/2003 4,635 4,876
Washington Health Care Fac. Auth. (Sisters of Providence) 6.00% 10/1/2001 (2) 4,735 4,800
Washington Health Care Fac. Auth. VRDO
(Virginia Mason Medical Center) 4.65% 11/2/2000 (1) 6,600 6,600
-----------
$ 121,284
-----------
WEST VIRGINIA (0.3%)
West Virginia Capital Appreciation Infrastructure 0.00% 11/1/2005 (3) 3,850 3,015
West Virginia Capital Appreciation Infrastructure 0.00% 11/1/2006 (3) 6,850 5,096
----------
$ 8,111
----------
WISCONSIN (2.0%)
Milwaukee WI GO 6.00% 2/1/2005 9,300 9,796
Milwaukee WI Metro. Sewer Dist. GO 6.25% 10/1/2004 10,000 10,599
Wisconsin GO 5.00% 5/1/2004 10,895 11,062
Wisconsin GO 6.125% 11/1/2006 7,210 7,767
Wisconsin GO 7.00% 5/1/2004 6,145 6,623
Wisconsin Petroleum Inspection Fee Rev. 6.00% 7/1/2004 10,500 10,983
-----------
$ 56,830
-----------
------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $2,759,463) $2,761,270
------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.5%)
------------------------------------------------------------------------------------------------------------------------
Other Assets--Note B $ 66,313
Liabilities (52,776)
-----------
$ 13,537
-----------
------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%)
------------------------------------------------------------------------------------------------------------------------
Applicable to 260,874,468 outstanding $.001 par value shares
of beneficial interest (unlimited authorization) $2,774,807
========================================================================================================================
NET ASSET VALUE PER SHARE $ 10.64
========================================================================================================================
*See Note A in Notes to Financial Statements.
For key to abbreviations and other references, see page 80.
</TABLE>
-------------------------------------------------------------------------------
AT OCTOBER 31, 2000, NET ASSETS CONSISTED OF:
-------------------------------------------------------------------------------
Amount Per
(000) Share
-------------------------------------------------------------------------------
Paid in Capital $2,779,936 $10.66
Undistributed Net Investment Income -- --
Accumulated Net Realized Losses--Note E (6,936) (.03)
Unrealized Appreciation--Note F 1,807 .01
-------------------------------------------------------------------------------
NET ASSETS $2,774,807 $10.64
===============================================================================
29
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (99.5%)
------------------------------------------------------------------------------------------------------------------------
ALABAMA (0.3%)
Birmingham AL GO VRDO 4.35% 11/8/2000 (2) LOC $ 6,250 $ 6,250
Huntsville AL Health Care Fac. Auth. PUT 4.65% 6/1/2005 (1) 21,630 21,322
-----------
$ 27,572
-----------
ALASKA (0.2%)
Anchorage AK Electric Util. Rev. 8.00% 12/1/2011 (1) 5,395 6,807
Matanuska-Susitna Borough AK GO 5.50% 3/1/2012 (3) 6,000 6,246
-----------
$ 13,053
-----------
ARIZONA (1.8%)
Arizona Transp. Board Excise Tax Rev. 6.00% 7/1/2005 (2) 18,885 20,023
Arizona Transp. Board Highway Rev. 8.75% 7/1/2003 10,000 11,054
Maricopa County AZ COP 6.00% 6/1/2004 5,275 5,406
Maricopa County AZ GO 6.25% 7/1/2002(3) 5,100 5,250
Maricopa County AZ PCR
(Southern California Edison Co.) VRDO 4.60% 11/2/2000 7,000 7,000
Maricopa County AZ PCR
(Southern California Edison Co.) VRDO 4.65% 11/2/2000 23,655 23,655
Maricopa County AZ (Samaritan Health Service) 7.15% 12/1/2004 (1) 9,900 10,616
Maricopa County AZ (Samaritan Health Service) 7.15% 12/1/2005 (1) 6,080 6,514
Maricopa County AZ Unified School Dist. GO 0.00% 1/1/2007 (3) 6,000 4,476
Mesa AZ GO 5.70% 7/1/2003 (1)(Prere.) 5,600 5,850
Phoenix AZ Civic Improvement Corp. Airport Rev. 5.25% 7/1/2009 (4) 4,795 4,960
Phoenix AZ Civic Improvement Corp. Airport Rev. 5.25% 7/1/2010 (4) 2,500 2,582
Phoenix AZ Civic Improvement Corp. Airport Rev. 5.25% 7/1/2011 (4) 3,000 3,075
Phoenix AZ Civic Improvement Corp. Water System 5.95% 7/1/2006 (Prere.) 6,600 7,053
Phoenix AZ GO 7.50% 7/1/2008 5,000 5,903
Phoenix AZ Highway Rev. GO 9.25% 7/1/2007 4,000 5,033
Tucson AZ GO 7.375% 7/1/2013 4,500 5,478
Tucson AZ Unified School Dist. GO 7.50% 7/1/2006 (3) 8,840 10,110
Tucson AZ Unified School Dist. GO 7.50% 7/1/2007 (3) 8,000 9,306
-----------
$ 153,344
-----------
CALIFORNIA (7.5%)
Anaheim CA Public Finance Auth. Rev. 6.00% 9/1/2009 (4) 2,000 2,227
California Dept. of Veteran Affairs 5.45% 12/1/2019 (2) 13,200 13,181
California Dept. of Water (Central Valley Project) 8.25% 12/1/2003 5,000 5,595
California Dept. of Water (Central Valley Project) 8.25% 12/1/2004 5,545 6,385
California GO 5.70% 8/1/2004 (Prere.) 16,500 17,679
California GO 5.70% 8/1/2007 1,000 1,064
California GO 5.75% 8/1/2004 (3)(Prere.) 14,145 15,196
California GO 5.75% 8/1/2008 (3) 855 910
California GO 6.30% 9/1/2010 4,000 4,550
California GO 6.75% 6/1/2004 13,165 14,280
California GO 7.00% 10/1/2005 (1) 5,000 5,614
California GO 7.10% 6/1/2005 12,495 13,963
California GO 11.00% 3/1/2006 13,185 17,265
California Health Fac. Finance Auth.
(Catholic Healthcare West) 6.25% 7/1/2004(1) 4,515 4,829
California Health Fac. Finance Auth.
(Catholic Healthcare West) 6.25% 7/1/2005(1) 5,875 6,372
California Health Fac. Finance Auth.
(Catholic Healthcare West) 6.25% 7/1/2006(1) 5,000 5,477
California Health Fac. Finance Auth.
(Catholic Healthcare West) 6.25% 7/1/2007(1) 5,290 5,856
California Health Fac. Finance Auth.
(Sisters of Providence) 6.00% 10/1/2002 3,865 3,987
California Health Fac. Finance Auth.
(Sisters of Providence) 6.00% 10/1/2003 4,095 4,283
California Health Fac. Finance Auth.
(Sisters of Providence) 6.00% 10/1/2004 4,340 4,590
</TABLE>
30
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California Public Works Board Lease Rev.
(Community College Project) 5.625% 3/1/2016 (2) $ 20,000 $ 20,733
California Public Works Board Lease Rev.
(Dept. of Corrections) 5.375% 11/1/2011 6,500 6,785
California Public Works Board Lease Rev.
(Dept. of Corrections) 5.375% 11/1/2012 7,990 8,292
California Public Works Board Lease Rev.
(Dept. of Corrections) 5.50% 1/1/2015(2) 10,000 10,322
California Public Works Board Lease Rev.
(Dept. of Corrections) 6.00% 1/1/2008(2) 14,865 16,204
California Public Works Board Lease Rev. (State Archives) 5.375% 12/1/2009 4,555 4,819
California Public Works Board Lease Rev. (State Archives) 5.375% 12/1/2010 6,635 6,974
California Public Works Board Lease Rev. (State Archives) 5.375% 12/1/2012 7,895 8,196
California Public Works Board Lease Rev.
(Univ. of California) 6.10% 12/1/2005 (2) 6,515 6,868
California Public Works Board Lease Rev.
(Univ. of California) 6.20% 12/1/2006 (2) 3,320 3,528
California Statewide Community Dev. Auth. Rev.
(Catholic Healthcare West) 6.00% 7/1/2009 7,160 7,321
California Statewide Community Dev. Auth. PUT
(Irvine Apartments) 4.90% 5/15/2008 65,000 63,478
California Statewide Community Dev. Auth. PUT
(Irvine Apartments) 5.10% 5/17/2010 8,750 8,537
Clovis CA Unified School Dist. GO 0.00% 8/1/2001 11,180 10,857
Contra Costa CA COP (Merrithew Memorial Hosp. Project) 5.50% 11/1/2011 (1) 5,660 5,998
Fresno CA Sewer Rev. 6.25% 9/1/201 (2) 12,000 13,822
Irvine CA Unified School Dist. GO 5.50% 11/1/2013 (2) 4,565 4,803
Long Beach CA Harbor Rev 5.75% 5/15/2013 7,630 8,084
Los Angeles County CA Transp. Auth. Sales Tax Rev. 8.00% 7/1/2001 (2) 6,365 6,541
Los Angeles County CA Transp. Auth. Sales Tax Rev. 8.00% 7/1/2002 (2) 3,915 4,160
Los Angeles County CA Transp. Auth. Sales Tax Rev. 6.50% 7/1/2010 (4) 51,070 58,871
Northern California Power Agency (Hydroelectric Project) 6.10% 7/1/2005 (1) 5,575 6,014
Northern California Power Agency (Hydroelectric Project) 6.20% 7/1/2006 (1) 5,940 6,502
Northern California Power Agency (Hydroelectric Project) 6.25% 7/1/2007 (1) 6,685 7,413
Orange County CA Local Transp. Auth. Sales Tax Rev. 5.50% 2/15/2009 (1) 5,000 5,375
Orange County CA Local Transp. Auth. Sales Tax Rev. 5.50% 2/15/2010 (1) 10,035 10,766
Port of Oakland CA 5.25% 11/1/2006 (3) 6,700 6,955
San Bernardino CA Medical Center COP 5.50% 8/1/2004 (1) 4,100 4,289
San Bernardino CA Medical Center COP 5.50% 8/1/2005 (1) 10,000 10,549
San Bernardino CA Medical Center COP 7.00% 8/1/2008 (1) 9,045 10,561
San Bernardino CA Medical Center COP 7.00% 8/1/2009 (1) 9,705 11,466
San Bernardino CA Medical Center COP 7.00% 8/1/2010 (1) 10,525 12,555
San Diego CITY CA TAN 5.25% 10/2/2001 20,000 20,253
San Diego County CA Regional Transp. Auth. Sales Tax Rev. 7.00% 4/1/2006 1,780 1,874
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2004 25,000 21,758
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2005 25,000 20,793
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2006 (1) 16,000 12,685
Santa Margarita/Dana Point CA Water Dist. Rev. 5.50% 8/1/2011 (2) 4,785 5,085
Santa Margarita/Dana Point CA Water Dist. Rev. 5.50% 8/1/2012 (2) 3,315 3,503
South Orange County CA Public Finance Auth. 7.00% 9/1/2006 (1) 500 569
Southern California Rapid Transit Dist. Rev. 5.70% 9/1/2004 (2) 14,040 14,823
Univ. of California Rev. (Multiple Purpose Project) 9.25% 9/1/2005 (1) 5,000 6,078
Univ. of California Rev. (Multiple Purpose Project) 10.00% 9/1/2003 (2) 3,790 4,375
-----------
$ 642,737
-----------
</TABLE>
31
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COLORADO (1.7%)
Colorado Dept. of Transp. 6.00% 6/15/2011 (2) $ 18,935 $ 20,622
Colorado Dept. of Transp. 6.00% 6/15/2012 (2) 10,000 10,827
Colorado Dept. of Transp. 6.00% 6/15/2013 (2) 30,000 32,313
Colorado Health Fac. Auth. Rev. (Poudre Valley Health) 6.00% 12/1/2013 (4) 5,185 5,553
Colorado Health Fac. Auth. Rev. (Poudre Valley Health) 6.00% 12/1/2014 (4) 5,500 5,851
Colorado Health Fac. Auth. Rev.
(Sisters of Charity Health System Inc.) 5.25% 12/1/2009 (1) 2,965 3,037
Colorado Health Fac. Auth. Rev.
(Sisters of Charity Health System Inc.) 5.25% 12/1/2010 (1) 1,740 1,776
Colorado Health Fac. Auth. Rev.
(Sisters of Charity Health System Inc.) 5.25% 12/1/2011 (1) 3,415 3,469
Colorado Health Fac. Auth. Rev.
(Sisters of Charity Health System Inc.) 8.50% 5/15/2004 (1) 14,435 15,543
Denver CO City & County Airport Rev. 6.00% 11/15/2011 (2) 14,895 15,962
Denver CO City & County Airport Rev. 6.00% 11/15/2012 (2) 10,460 11,133
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2011 (1) 8,000 4,590
E-470 Public Highway Auth. CO Rev. 4.90% 9/1/2010 (1) 4,500 4,522
E-470 Public Highway Auth. CO Rev. 5.00% 9/1/2011 (1) 7,250 7,280
Northern Colorado Muni. Subdist.
Water Conservancy Dist. Rev. 6.35% 12/1/2007 (2) 4,155 4,571
-----------
$ 147,049
-----------
CONNECTICUT (1.3%)
Connecticut GO 5.30% 11/15/2003 (Prere.) 250 260
Connecticut GO 5.30% 11/15/2006 16,690 17,270
Connecticut GO 5.40% 11/15/2003 (Prere.) 135 141
Connecticut GO 5.40% 11/15/2007 10,375 10,763
Connecticut GO 6.00% 5/15/2003 5,000 5,188
Connecticut GO 6.00% 10/1/2004 (ETM) 175 184
Connecticut GO 6.00% 10/1/2004 5,485 5,783
Connecticut GO 7.00% 3/15/2003 5,000 5,287
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 5.125% 9/1/2005 7,000 7,172
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 5.25% 9/1/2006 42,550 43,678
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 7.125% 6/1/2010 12,000 13,965
-----------
$ 109,691
-----------
DELAWARE (0.1%)
Delaware Transp. Auth. Rev. 5.80% 7/1/2002 (Prere.) 2,595 2,699
Delaware Transp. Auth. Rev. 5.80% 7/1/2008 4,950 5,125
-----------
$ 7,824
-----------
DISTRICT OF COLUMBIA (1.9%)
District of Columbia GO 5.20% 6/1/2008(2) 4,390 4,486
District of Columbia GO 5.25% 6/1/2008(1) 10,000 10,251
District of Columbia GO 5.30% 6/1/2009(2) 4,600 4,724
District of Columbia GO 5.375% 6/1/2011(2) 5,255 5,365
District of Columbia GO 5.50% 6/1/2004(4) 12,845 13,231
District of Columbia GO 5.50% 6/1/2006(4) 6,205 6,424
District of Columbia GO 5.50% 6/1/2007 2,950 3,075
District of Columbia GO 5.50% 6/1/2008(2) 10,000 10,408
District of Columbia GO 5.50% 6/1/2008 5,000 5,227
District of Columbia GO 5.50% 6/1/2010(2) 10,490 10,909
District of Columbia GO 5.50% 6/1/2012(4) 6,520 6,736
District of Columbia GO 5.50% 6/1/2013(2) 5,750 5,848
District of Columbia GO 5.75% 6/1/2003(2)(Prere.) 190 199
</TABLE>
32
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
District of Columbia GO 5.75% 6/1/2007(2) $ 4,860 $ 5,046
District of Columbia GO 5.75% 6/1/2010(1) 23,590 24,978
District of Columbia GO 5.80% 6/1/2004(3)(ETM) 955 993
District of Columbia GO 6.00% 6/1/2011(1) 10,000 10,788
District of Columbia GO 6.00% 6/1/2004(1)(Prere.) 8,890 9,457
District of Columbia GO 6.10% 6/1/2004(1)(Prere.) 7,000 7,469
District of Columbia Hosp. Rev. (Medlantic Health Group) 6.00% 8/15/2007 (1) 2,985 3,201
District of Columbia Hosp. Rev. (Medlantic Health Group) 6.00% 8/15/2008 (1) 3,160 3,408
District of Columbia Hosp. Rev. (Medlantic Health Group) 6.00% 8/15/2010 (1) 2,555 2,777
District of Columbia Hosp. Rev. (Medlantic Health Group) 6.00% 8/15/2012 (1) 2,995 3,254
-----------
$ 158,254
-----------
FLORIDA (3.7%)
Broward County FL School Board COP 5.75% 7/1/2003 (2) 9,000 9,292
Broward County FL School Board COP 5.75% 7/1/2004 (2) 9,515 9,919
Broward County FL School Board COP 5.75% 7/1/2005 (2) 5,445 5,719
Broward County FL School Dist. GO 5.40% 2/15/2005 5,000 5,169
Broward County FL School Dist. GO 5.50% 2/15/2006 10,080 10,441
Dade County FL IDA Exempt Fac. Rev. VRDO
(Florida Power & Light Co.) 4.65% 11/2/2000 5,800 5,800
Dade County FL Sales Tax Rev. 6.00% 10/1/2002 (2) 5,000 5,144
Dade County FL School Board COP 5.25% 8/1/2009 (2) 11,320 11,696
Dade County FL School Board COP 5.25% 8/1/2010 (2) 12,140 12,532
Dade County FL School Board COP 5.375% 5/1/2006 (2)(Prere.) 4,775 4,997
Dade County FL School Dist. GO 6.25% 2/15/2004 (1) 5,520 5,810
Dade County FL Water & Sewer System Rev. VRDO 4.25% 11/8/2000 (3) 31,400 31,400
Florida Board of Educ. Rev. (Capital Outlay) 5.25% 1/1/2009 11,065 11,458
Florida Board of Educ. Rev. (Capital Outlay) 5.25% 1/1/2010 15,775 16,281
Florida Board of Educ. Rev. (Capital Outlay) 5.50% 6/1/2004 5,095 5,267
Florida Board of Educ. Rev. (Capital Outlay) 6.00% 6/1/2011 4,530 4,965
Florida Board of Educ. Rev. (Capital Outlay) 6.50% 6/1/2005 5,000 5,397
Florida Board of Educ. Rev. (Lottery Rev.) 5.25% 7/1/2010 (3) 5,800 5,995
Florida Board of Educ. Rev. (Lottery Rev.) 5.25% 7/1/2011 (3) 10,840 11,128
Florida Board of Educ. Rev. (Lottery Rev.) 5.25% 7/1/2012 (3) 11,410 11,632
Florida Dept. of General Services Rev.
(Dept. of Environmental Protection Preservation-2000) 5.00% 7/1/2011 (2) 6,575 6,667
Florida Dept. of General Services Rev.
(Dept. of Environmental Protection Preservation-2000) 5.25% 7/1/2003 (3) 18,350 18,723
Florida Dept. of General Services Rev.
(Dept. of Environmental Protection Preservation-2000) 5.625% 7/1/2008 (2) 5,000 5,235
Florida Environment Protection Preservation Rev. 5.75% 7/1/2009 (3) 5,000 5,366
Florida Environment Protection Preservation Rev. 6.00% 7/1/2012 (2) 11,500 12,592
Florida GO 6.00% 6/1/2006 6,605 7,059
Florida Turnpike Auth. Rev. 5.25% 7/1/2011 (3) 2,185 2,245
Florida Turnpike Auth. Rev. 5.25% 7/1/2012 (3) 7,560 7,712
Florida Turnpike Auth. Rev. 5.25% 7/1/2013 (3) 7,755 7,857
Highlands County FL Health Rev. (Adventist Health System) 5.25% 11/15/2011 3,735 3,418
Highlands County FL Health Rev. (Adventist Health System) 5.25% 11/15/2012 3,935 3,553
Highlands County FL Health Rev. (Adventist Health System) 5.25% 11/15/2013 3,140 2,807
Lakeland FL Electric & Water Rev. 6.30% 10/1/2003 6,465 6,785
Lee County FL School Board COP 6.00% 8/1/2005 (3) 4,175 4,423
Palm Beach County FL School Board 6.00% 8/1/2005 (2) 6,115 6,479
Palm Beach County FL School Board 6.00% 8/1/2006 (2) 6,480 6,916
Palm Beach County FL Solid Waste Auth. Rev. 5.25% 10/1/2003 (2) 7,760 7,919
</TABLE>
33
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Palm Beach County FL Solid Waste Auth. Rev. 5.25% 10/1/2003 (2)(ETM) $ 1,240 $ 1,267
Tallahassee FL Health Fac.
(Tallahassee Memorial Healthcare Project) 6.25% 12/1/2020 + 10,000 9,853
Tampa FL Health System Rev. (Catholic Healthcare East) 5.25% 11/15/2011 (1) 3,000 3,044
-----------
$ 319,962
-----------
GEORGIA (3.8%)
Atlanta GA Airport Fac. Rev. 0.00% 9/19/2006 (1) 30,000 17,665
Atlanta GA Airport Rev. 5.875% 1/1/2015 (3) 11,930 12,630
Atlanta GA Airport Rev. 5.875% 1/1/2016 (3) 5,000 5,267
Atlanta GA Airport Rev. 6.00% 1/1/2011 (3) 7,000 7,523
Atlanta GA Airport Rev. 6.125% 1/1/2012 (3) 7,500 8,115
Atlanta GA Airport Rev. 6.25% 1/1/2014 (3) 5,000 5,398
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2010 (3) 10,000 10,551
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2011 (3) 10,000 10,506
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2012 (3) 5,000 5,233
Burke County GA Dev. Auth. PCR VRDO
(Georgia Power Co. Plant Vogtle Project) 4.65% 11/2/2000 5,500 5,500
DeKalb County GA GO 5.60% 1/1/2005 3,040 3,133
Fulton County GA COP 5.75% 11/1/2011 (2) 6,000 6,414
Fulton County GA COP 6.00% 11/1/2012 (2) 5,985 6,488
Fulton County GA COP 6.00% 11/1/2013 (2) 6,325 6,820
Fulton County GA COP 6.00% 11/1/2014 (2) 4,675 5,026
Fulton County GA School Dist. GO 6.375% 5/1/2010 15,000 16,682
Georgia GO 6.25% 4/1/2006 12,200 13,155
Georgia GO 6.30% 4/1/2002 3,820 3,919
Georgia GO 6.30% 3/1/2007 15,000 16,360
Georgia GO 6.50% 8/1/2001 3,230 3,281
Georgia GO 6.50% 12/1/2003 5,000 5,292
Georgia GO 6.50% 7/1/2005 5,000 5,403
Georgia GO 6.75% 8/1/2007 6,100 6,842
Georgia GO 6.75% 9/1/2010 8,000 9,245
Georgia GO 6.80% 8/1/2002 8,000 8,319
Georgia GO 7.00% 11/1/2004 5,000 5,451
Georgia GO 7.00% 11/1/2005 15,670 17,355
Georgia GO 7.00% 11/1/2006 16,780 18,861
Georgia GO 7.00% 11/1/2007 17,960 20,469
Georgia GO 7.10% 9/1/2009 3,400 3,978
Georgia GO 7.25% 7/1/2004 3,500 3,820
Georgia GO 7.25% 9/1/2005 3,630 4,046
Georgia GO 7.25% 9/1/2006 7,860 8,909
Georgia GO 7.40% 8/1/2007 11,200 12,967
Georgia Muni. Electric Power Auth. Rev. 6.30% 1/1/2005 (1) 12,775 13,520
Monroe County GA Dev. Auth. PCR (Oglethorpe Power Corp.) 6.65% 1/1/2008 (1) 9,220 10,263
-----------
$ 324,406
-----------
HAWAII (2.4%)
Hawaii Airport System Rev. 5.40% 7/1/2002(1) 7,855 7,969
Hawaii Airport System Rev. 5.85% 7/1/2002(1) 7,830 8,000
Hawaii Airport System Rev. 5.95% 7/1/2003(1) 2,590 2,680
Hawaii Airport System Rev. 6.05% 7/1/2004(1) 3,145 3,298
Hawaii Airport System Rev. 6.15% 7/1/2005(1) 10,735 11,326
Hawaii Airport System Rev. 6.25% 7/1/2006(1) 5,000 5,280
</TABLE>
34
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hawaii Airport System Rev. 6.90% 7/1/2012 $ 20,195 $ 22,781
Hawaii GO 5.00% 2/1/2004 10,000 10,128
Hawaii GO 5.00% 2/1/2005 6,650 6,746
Hawaii GO 5.125% 2/1/2006 11,605 11,806
Hawaii GO 5.25% 4/1/2003 (1) 5,000 5,084
Hawaii GO 5.625% 9/1/2012 (4) 5,000 5,235
Hawaii GO 5.75% 10/1/2011 (1) 2,210 2,349
Hawaii GO 5.75% 10/1/2012 (1) 2,130 2,250
Hawaii GO 5.875% 10/1/2013 (1) 2,000 2,123
Hawaii GO 6.00% 12/1/2009 (3) 3,550 3,863
Hawaii GO 6.00% 11/1/2010 (4) 10,000 10,903
Hawaii GO 6.40% 3/1/2007 5,555 6,053
Honolulu HI City & County GO 5.125% 7/1/2010 (3) 16,275 16,591
Honolulu HI City & County GO 5.125% 7/1/2011 (3) 7,305 7,385
Honolulu HI City & County GO 5.75% 1/1/2006 10 10
Honolulu HI City & County GO 5.75% 1/1/2006 (ETM) 8,815 9,272
Honolulu HI City & County GO 6.00% 1/1/2008 5 5
Honolulu HI City & County GO 6.00% 1/1/2008 (ETM) 4,995 5,389
Honolulu HI City & County GO 6.30% 3/1/2002 (Prere.) 4,830 5,036
Honolulu HI City & County GO 8.00% 10/1/2009 26,940 32,979
Honolulu HI City & County GO 8.00% 10/1/2009 (ETM) 3,620 4,470
-----------
$ 209,011
-----------
Illinois (3.5%)
Chicago IL GO (City Colleges Improvement Projects) 0.00% 1/1/2012 (3) 26,000 14,529
Chicago IL GO (City Colleges Improvement Projects) 0.00% 1/1/2013 32,670 17,145
Chicago IL Metro. Water Reclamation Dist. 5.85% 12/1/2003 6,355 6,601
Chicago IL Metro. Water Reclamation Dist. 5.90% 12/1/2006 4,450 4,745
Chicago IL Metro. Water Reclamation Dist. 6.05% 12/1/2009 3,000 3,280
Chicago IL Metro. Water Reclamation Dist. 6.10% 12/1/2006 5,300 5,629
Chicago IL Metro. Water Reclamation Dist. 6.25% 12/1/2005 (Prere.) 15,000 16,117
Chicago IL School Finance Auth. 5.20% 6/1/2005 (3) 3,000 3,065
Chicago IL School Finance Auth. 6.10% 6/1/2002 (3) 11,945 12,226
Chicago IL School Finance Auth. 5.375% 6/1/2008 (3) 9,500 9,794
Chicago IL Water Rev. 5.50% 11/1/2003 (2) 5,000 5,133
Chicago IL O'Hare International Airport Rev. 5.50% 1/1/2009 (2) 10,000 10,297
Cook County IL GO 5.75% 11/15/2003 (3) 5,000 5,171
Cook County IL GO 5.80% 11/15/2004 10,000 10,449
Illinois Dev. Finance Auth. PCR (Commonwealth Edison) 4.40% 12/1/2006 (2) 45,400 44,166
Illinois GO 6.25% 10/1/2005 6,000 6,280
Illinois Health Fac. Auth. Rev. (Hosp. Sisters Services Inc.) 5.25% 6/1/2008 (1) 4,000 4,095
Illinois Health Fac. Auth. Rev. (Hosp. Sisters Services Inc.) 5.25% 6/1/2009 (1) 4,695 4,799
Illinois Health Fac. Auth. Rev. (Hosp. Sisters Services Inc.) 5.25% 6/1/2010 (1) 5,000 5,102
Illinois Health Fac. Auth. Rev. (Hosp. Sisters Services Inc.) 5.25% 6/1/2011 (1) 4,000 4,060
Illinois Health Fac. Auth. Rev. (Hosp. Sisters Services Inc.) 5.25% 6/1/2012 (1) 4,280 4,309
Illinois Regional Transp. Auth. 9.00% 6/1/2008 (2) 6,840 8,667
Illinois Regional Transp. Auth. 9.00% 6/1/2009 (2) 4,255 5,497
Illinois Regional Transp. Auth. 9.00% 6/1/2005 (2) 5,220 6,149
Illinois Sales Tax Rev. 6.125% 6/15/2012 4,250 4,605
Illinois Sales Tax Rev. 6.125% 6/15/2014 6,850 7,373
Illinois Sales Tax Rev. 6.50% 6/15/2013 5,000 5,599
Metro. Pier & Exposition Auth. Dedicated Sales Tax Rev. IL 0.00% 6/15/2011 (3) 7,780 4,515
Metro. Pier & Exposition Auth. Dedicated Sales Tax Rev. IL 6.50% 6/1/2006 (2) 11,885 12,930
</TABLE>
35
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Metro. Pier & Exposition Auth. Dedicated Sales Tax Rev. IL 6.75% 6/1/2010 (2) $ 25,000 $ 28,379
Metro. Pier & Exposition Auth. Dedicated Sales Tax Rev. IL 7.25% 6/15/2005 (2) 6,670 7,378
Metro. Pier & Exposition Auth. Dedicated Sales Tax Rev. IL 7.25% 6/15/2005 (2)(ETM) 8,330 9,251
-----------
$ 297,335
-----------
INDIANA (0.4%)
Indiana Muni. Power Agency 5.875% 1/1/2010(1) 4,500 4,821
Indiana Univ. Student Fee Bonds 6.80% 8/1/2004 25,000 25,878
-----------
$ 30,699
-----------
KENTUCKY (0.8%)
Kentucky Dev. Finance Auth. Hosp. Rev. (Sisters of Charity) 6.60% 11/1/2001 (Prere.) 5,000 5,201
Kentucky Dev. Finance Auth. (St. Elizabeth Medical Center) 6.625% 11/1/2004 (3) 20,025 20,693
Kentucky Econ. Dev. Finance Auth. Hosp. Fac. Rev. VRDO
(Baptist Healthcare) 4.35% 11/8/2000 (1) 2,200 2,200
Kentucky Econ. Dev. Finance Auth. Hosp. Fac. Rev. VRDO
(Baptist Healthcare) 4.65% 11/2/2000 (1) 2,400 2,400
Kentucky Property & Buildings Comm. Rev. 5.25% 11/1/2008 2,500 2,575
Kentucky Property & Buildings Comm. Rev. 5.50% 9/1/2003 8,000 8,210
Kentucky Property & Buildings Comm. Rev. 5.60% 9/1/2004 3,000 3,109
Kentucky Property & Buildings Comm. Rev. 5.70% 9/1/2005 7,350 7,625
Kentucky Property & Buildings Comm. Rev. 5.75% 10/1/2011 6,135 6,545
Kentucky Property & Buildings Comm. Rev. 5.75% 10/1/2013 3,500 3,692
Louisville & Jefferson County KY Regional Airport Auth.
Special Fac. Rev. VRDO (UPS Worldwide Forwarding) 4.65% 11/2/2000 5,800 5,800
-----------
$ 68,050
-----------
LOUISIANA (1.1%)
Jefferson Parish LA Sales Tax Rev. 6.75% 12/1/2002 (3)(Prere.) 3,400 3,554
Jefferson Parish LA Sales Tax Rev. 6.75% 12/1/2006 (3) 7,600 7,910
Louisiana GO 5.25% 4/15/2011 (4) 11,395 11,659
Louisiana GO 5.50% 4/15/2003 (3) 4,445 4,547
Louisiana GO 6.00% 4/15/2004 (3) 7,210 7,536
Louisiana GO 6.25% 4/15/2005 (3) 6,455 6,877
Louisiana GO 6.75% 5/15/2002 (1) 7,680 7,944
Louisiana GO 7.00% 8/1/2004 (1) 5,810 6,285
Louisiana GO 7.75% 8/1/2006 (1) 10,970 12,644
Louisiana Public Fac. Auth. (Franciscan Missionaries) 5.375% 7/1/2011 (1) 4,990 5,132
St. Charles Parish LA PCR PUT (Entergy Inc.) 5.35% 10/1/2003 24,000 23,935
-----------
$ 98,023
-----------
MARYLAND (0.1%)
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 6.625% 7/1/2020 4,000 $ 4,118
-----------
MASSACHUSETTS (7.4%)
Boston MA GO 5.25% 4/1/2012 (3) 5,515 5,623
Boston MA Water & Sewer Comm. Rev. 5.75% 11/1/2013 5,785 6,145
Chelsea MA GO 5.50% 6/15/2008 (2) 4,635 4,903
Chelsea MA GO 5.50% 6/15/2009 (2) 3,000 3,179
Chelsea MA GO 5.50% 6/15/2011 (2) 5,000 5,249
Chelsea MA GO 5.50% 6/15/2012 (2) 5,000 5,217
Massachusetts Bay Transp. Auth. 5.125% 3/1/2011 2,255 2,291
Massachusetts Bay Transp. Auth. 5.125% 3/1/2012 5,820 5,869
</TABLE>
36
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts Bay Transp. Auth. 7.00% 3/1/2009 $ 8,880 $ 10,228
Massachusetts Bay Transp. Auth. 7.25% 3/1/2003 (3) 5,055 5,167
Massachusetts GO 5.125% 11/1/2013 10,500 10,551
Massachusetts GO 5.25% 4/1/2010 5,180 5,371
Massachusetts GO 5.25% 4/1/2011 13,525 13,930
Massachusetts GO 5.50% 2/1/2011 17,575 18,014
Massachusetts GO 5.50% 2/1/2011 (1) 10,000 10,258
Massachusetts GO 5.50% 7/1/2005 (2)(Prere.) 5,360 5,631
Massachusetts GO 5.70% 2/1/2008 (1) 6,805 7,138
Massachusetts GO 5.75% 6/1/2011 10,000 10,707
Massachusetts GO 5.75% 6/1/2012 14,000 14,901
Massachusetts GO 5.75% 6/1/2013 24,850 26,312
Massachusetts GO 6.00% 11/1/2010 5,000 5,489
Massachusetts GO 6.00% 6/1/2014 10,000 10,746
Massachusetts GO 6.50% 8/1/2002 (Prere.) 3,840 4,049
Massachusetts GO 7.50% 6/1/2004 3,975 4,244
Massachusetts Grant Anticipation Notes 5.125% 6/15/2010 10,755 10,994
Massachusetts Grant Anticipation Notes 5.125% 12/15/2010 5,000 5,111
Massachusetts Grant Anticipation Notes 5.125% 6/15/2011 8,555 8,670
Massachusetts Grant Anticipation Notes 5.125% 12/15/2012 5,000 5,031
Massachusetts Grant Anticipation Notes 5.125% 6/15/2013 5,000 4,997
Massachusetts Grant Anticipation Notes 5.25% 6/15/2010 23,675 24,506
Massachusetts Grant Anticipation Notes 5.25% 12/15/2010 26,275 27,234
Massachusetts Grant Anticipation Notes 5.25% 6/15/2011 15,000 15,414
Massachusetts Grant Anticipation Notes 5.25% 12/15/2011 14,820 15,229
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston Medical Center) 5.25% 7/1/2009(1) 4,215 4,315
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston Medical Center) 5.25% 7/1/2010(1) 4,440 4,534
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston Medical Center) 5.25% 7/1/2011(1) 4,670 4,744
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston Medical Center) 5.25% 7/1/2012(1) 1,850 1,862
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2006 6,400 6,022
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2007 5,390 4,999
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2008 5,030 4,586
Massachusetts Health & Educ. Fac. Auth. Rev.
(Harvard Pilgrim Health) 5.25% 7/1/2009(4) 6,375 6,472
Massachusetts Health & Educ. Fac. Auth. Rev.
(Harvard Pilgrim Health) 5.25% 7/1/2010(4) 5,970 6,042
Massachusetts Health & Educ. Fac. Auth. Rev.
(Harvard Pilgrim Health) 5.25% 7/1/2011(4) 3,530 3,554
Massachusetts Health & Educ. Fac. Auth. Rev.
(Harvard Pilgrim Health) 5.25% 7/1/2012(4) 6,155 6,139
Massachusetts Health & Educ. Fac. Auth. Rev.
(Partners Healthcare System) 5.25% 7/1/2003 (4) 3,725 3,787
Massachusetts Ind. Finance Agency Resource Recovery Rev.
(Refusetech Inc. Project) 6.15% 7/1/2002 4,560 4,635
Massachusetts Ind. Finance Agency Resource Recovery Rev.
(Refusetech Inc. Project) 6.30% 7/1/2005 30,250 31,586
</TABLE>
37
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts Ind. Finance Auth. Rev.
(BioMed Research Corp.) 0.00% 8/1/2004 $ 9,480 $ 7,907
Massachusetts Port Auth. Rev. PUT (United Airlines) 5.75% 10/1/2007 35,250 35,010
Massachusetts Water Pollution Abatement Trust 5.125% 8/1/2009 4,000 4,129
Massachusetts Water Pollution Abatement Trust 5.125% 8/1/2011 5,000 5,111
Massachusetts Water Pollution Abatement Trust 5.125% 8/1/2014 2,500 2,509
Massachusetts Water Pollution Abatement Trust 5.25% 8/1/2011 830 854
Massachusetts Water Pollution Abatement Trust 5.25% 8/1/2011 (ETM) 6,475 6,700
Massachusetts Water Pollution Abatement Trust 5.25% 8/1/2012 295 301
Massachusetts Water Pollution Abatement Trust 6.00% 8/1/2010 5,000 5,461
Massachusetts Water Pollution Abatement Trust 6.00% 8/1/2011 4,150 4,517
Massachusetts Water Pollution Abatement Trust 6.00% 8/1/2012 6,455 6,992
Massachusetts Water Pollution Abatement Trust 6.00% 8/1/2013 5,000 5,382
Massachusetts Water Resources Auth. GO VRDO 4.25% 11/8/2000 (3) 8,500 8,500
Massachusetts Water Resources Auth. Rev. 5.25% 3/1/2007 5,000 5,122
Massachusetts Water Resources Auth. Rev. 5.25% 3/1/2009 7,175 7,322
Massachusetts Water Resources Auth. Rev. 5.50% 11/1/2007 32,860 33,905
Massachusetts Water Resources Auth. Rev. 6.50% 7/15/2010 30,220 34,191
Massachusetts Water Resources Auth. Rev. 6.50% 7/15/2019 37,515 42,476
Massachusetts Water Resources Auth. Rev. VRDO 4.25% 11/8/2000 (2) 1,450 1,450
-----------
$ 629,514
-----------
MICHIGAN (3.7%)
Detroit MI GO 5.80% 5/1/2002 (2) 8,970 9,144
Detroit MI GO 5.90% 5/1/2003 (2) 9,490 9,800
Detroit MI Sewer System Rev. 5.25% 7/1/2015 (1) 4,000 3,988
Greater Detroit MI Resource Recovery Auth. 5.50% 12/13/2004 (2) 7,505 7,767
Greater Detroit MI Resource Recovery Auth. 6.25% 12/13/2005 (2) 17,205 18,453
Greater Detroit MI Resource Recovery Auth. 6.25% 12/13/2006 (2) 22,475 24,307
Greater Detroit MI Resource Recovery Auth. 6.25% 12/13/2007 (2) 11,070 12,069
Greater Detroit MI Resource Recovery Auth. 6.25% 12/13/2008 (2) 5,625 6,180
Michigan Building Auth. Rev. 4.75% 10/15/2013 15,000 14,410
Michigan Building Auth. Rev. 5.25% 10/15/2010 3,485 3,585
Michigan Building Auth. Rev. 5.25% 10/15/2011 5,825 5,959
Michigan Building Auth. Rev. 5.25% 10/15/2013 2,500 2,521
Michigan Building Auth. Rev. 5.375% 10/15/2010 5,880 6,102
Michigan Building Auth. Rev. 6.00% 10/15/2007 9,000 9,693
Michigan Building Auth. Rev. 6.50% 10/1/2001 (2)(Prere.) 3,000 3,116
Michigan Hosp. Finance Auth. Rev.
(Genesys Regional Medical Center) 5.30% 10/1/2011 10,840 11,095
Michigan Hosp. Finance Auth. Rev.
(Genesys Regional Medical Center) 5.375% 10/1/2013 4,000 4,032
Michigan Hosp. Finance Auth. Rev.
(Genesys Regional Medical Center) 5.50% 10/1/2006 3,340 3,482
Michigan Hosp. Finance Auth. Rev.
(Genesys Regional Medical Center) 5.50% 10/1/2007 3,910 4,088
Michigan Muni Bond Auth. Rev. Clean Water Revolving Fund 5.75% 10/1/2011 10,390 11,129
Michigan Muni Bond Auth. Rev. Clean Water Revolving Fund 5.875% 10/1/2012 7,680 8,273
Michigan Muni Bond Auth. Rev. Clean Water Revolving Fund 5.875% 10/1/2013 10,740 11,504
Michigan Muni. Bond Auth. Local Govt. Loan Auth. 0.00% 12/1/2000 (3) 5,590 5,569
Michigan Muni. Bond Auth. Local Govt. Loan Auth. 0.00% 12/1/2001 (3) 9,630 9,165
Michigan Public Power Agency Rev. 5.30% 1/1/2005 13,075 13,393
Michigan Public Power Agency Rev. 5.375% 1/1/2006 13,790 14,127
</TABLE>
38
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Michigan Public Power Agency Rev. 5.50% 1/1/2007 $ 14,545 $ 14,941
Michigan Public Power Agency Rev. 5.50% 1/1/2008 9,360 9,601
Univ. of Michigan Hosp. Rev. VRDO (Medical Service Plan) 4.65% 11/2/2000 17,620 17,620
Wayne Charter County MI Airport Rev. 5.25% 12/1/2010 (1) 12,000 12,187
Wayne Charter County MI Airport Rev. 5.25% 12/1/2011 (1) 10,845 10,929
Wayne Charter County MI Airport Rev. 5.25% 12/1/2012 (1) 15,270 15,256
-----------
$ 313,485
-----------
MINNESOTA (0.7%)
Minnesota GO 5.00% 6/1/2010 8,485 8,629
Minnesota GO 5.00% 6/1/2011 8,675 8,773
Minnesota GO 5.00% 6/1/2012 3,255 3,271
Minnesota GO 5.125% 11/1/2009 8,275 8,466
Northern Minnesota Muni. Power Agency
Electric System Rev. 5.25% 1/1/2012(4) 6,000 6,094
Western Minnesota Muni. Power Agency 5.375% 1/1/2008 (2) 5,645 5,864
Western Minnesota Muni. Power Agency 5.50% 1/1/2010 (2) 14,045 14,608
-----------
$ 55,705
-----------
MISSISSIPPI (0.6%)
Mississippi GO 5.25% 5/1/2008 5,805 5,919
Mississippi GO 6.00% 12/1/2006 6,380 6,839
Mississippi GO 6.00% 11/1/2011 9,225 9,970
Mississippi GO 6.00% 11/1/2012 9,725 10,459
Mississippi GO 6.50% 5/1/2003 4,285 4,486
Mississippi GO 6.50% 9/1/2006 5,125 5,604
Mississippi GO 7.00% 5/1/2005 4,840 5,301
-----------
$ 48,578
-----------
MISSOURI (0.2%)
Missouri Health & Educ. Fac. Auth. Educ. Fac. Rev. VRDO
(Washington Univ.) 4.60% 11/2/2000 11,000 11,000
Missouri Health & Educ. Fac. Auth. Health Fac. Rev
(St Anthony's Medical Center) 6.125% 12/1/2019 2,500 2,464
St. Louis County MO Rockwood School Dist. GO 8.50% 2/1/2002 5,940 6,224
-----------
$ 19,688
-----------
MONTANA (0.3%)
Forsyth MT PCR PUT (Portland General Electric Co.) 4.60% 5/1/2003 10,000 9,804
Montana Health Fac. Auth. Rev.
(Sisters of Charity Health System) 5.25% 12/1/2009 (1) 3,330 3,434
Montana Health Fac. Auth. Rev.
(Sisters of Charity Health System) 5.25% 12/1/2010 (1) 2,445 2,511
Montana Health Fac. Auth. Rev.
(Sisters of Charity Health System) 5.25% 12/1/2011 (1) 4,980 5,080
Montana Health Fac. Auth. Rev.
(Sisters of Charity Health System) 5.25% 12/1/2012 (1) 2,725 2,761
-----------
$ 23,590
-----------
NEBRASKA (0.8%)
Nebraska Public Power Dist. Rev. 5.25% 1/1/2010 (1) 26,500 27,295
Nebraska Public Power Dist. Rev. 5.25% 1/1/2011 (1) 10,000 10,226
Nebraska Public Power Dist. Rev. 5.25% 1/1/2012 5,000 5,076
Nebraska Public Power Dist. Rev. 5.60% 7/1/2003 13,175 13,528
Omaha NE Public Power Dist Electric Rev. 5.30% 2/1/2005 9,725 9,988
Omaha NE Public Power Dist Electric Rev. 5.50% 2/1/2007 5,000 5,220
-----------
$ 71,333
-----------
</TABLE>
39
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEVADA (3.6%)
Clark County NV Airport System Rev. 5.25% 7/1/2012 (1) $ 4,225 $ 4,279
Clark County NV Airport System Rev. 5.375% 7/1/2010 (1) 8,470 8,789
Clark County NV GO 5.50% 6/1/2012 (3) 6,365 6,530
Clark County NV GO 5.60% 6/1/2013 (3) 7,175 7,371
Clark County NV GO 5.625% 6/1/2014 (3) 7,450 7,640
Clark County NV GO 7.50% 6/1/2006 (2) 3,575 4,058
Clark County NV GO 7.50% 6/1/2007 (2) 9,550 11,019
Clark County NV GO 7.50% 6/1/2009 (2) 6,825 8,087
Clark County NV GO 8.00% 6/1/2008 (2) 9,875 11,870
Clark County NV Passenger Fac. Rev.
(McCarran International Airport) 5.375% 7/1/2010 (1) 6,435 6,693
Clark County NV Passenger Fac. Rev.
(McCarran International Airport) 5.375% 7/1/2011 (1) 9,445 9,750
Clark County NV Passenger Fac. Rev.
(McCarran International Airport) 5.375% 7/1/2012 (1) 8,295 8,499
Clark County NV School Dist. GO 5.375% 5/1/2006 (3) 3,740 3,834
Clark County NV School Dist. GO 5.375% 5/1/2007 (3) 9,195 9,417
Clark County NV School Dist. GO 5.375% 5/1/2008 (3) 9,170 9,383
Clark County NV School Dist. GO 5.50% 6/15/2010 (3) 16,325 16,962
Clark County NV School Dist. GO 5.60% 6/15/2009 (3) 9,640 10,182
Clark County NV School Dist. GO 5.625% 6/15/2013 (3) 10,000 10,302
Clark County NV School Dist. GO 5.70% 6/15/2009 (1) 10,825 11,417
Clark County NV School Dist. GO 5.875% 6/15/2005 (1)(Prere.) 23,760 25,230
Clark County NV School Dist. GO 5.90% 6/15/2006 (3)(Prere.) 10,000 10,709
Clark County NV School Dist. GO 6.50% 6/15/2006 (3) 12,115 13,181
Clark County NV School Dist. GO 7.25% 6/15/2002 (1) 3,995 4,163
Las Vegas NV Convention & Visitors Auth. 6.00% 7/1/2011 (2) 10,000 10,782
Las Vegas NV Convention & Visitors Auth. 6.00% 7/1/2012 (2) 5,000 5,359
Las Vegas NV Convention & Visitors Auth. 6.00% 7/1/2014 (2) 4,500 4,784
Nevada GO 5.25% 5/15/2010 8,555 8,731
Nevada GO 5.25% 5/15/2011 16,455 16,690
Nevada GO 5.25% 5/15/2012 17,300 17,439
Nevada GO 6.00% 5/1/2005 10,450 10,637
Nevada GO 6.00% 5/15/2010 6,680 7,266
Washoe County NV Hosp. Medical Center 6.00% 6/1/2009 (2) 6,310 6,663
-----------
$ 307,716
-----------
NEW HAMPSHIRE (0.6%)
New Hampshire Business Finance Auth. PCR
(Public Service Co. of New Hampshire) 6.00% 5/1/2021 35,300 32,939
New Hampshire Business Finance Auth. PCR PUT
(United Illuminating) 4.55% 2/1/2004 15,000 14,645
New Hampshire State Industrial Development Authority
Rev. (Connecticut Light & Power) 5.90% 8/1/2018 7,000 6,512
-----------
$ 54,096
-----------
NEW JERSEY (6.9%)
Camden County NJ Muni. Util. Auth. 0.00% 9/1/2002 (3) 18,545 17,049
Camden County NJ Muni. Util. Auth. 0.00% 9/1/2003 (3) 18,545 16,262
Essex County NJ Solid Waste Util. Auth. 5.50% 4/1/2011 (4) 3,000 3,176
Gloucester County NJ Improvement Auth.
Solid Waste Resource Rev. 6.85% 12/1/2029 4,000 4,136
New Jersey Econ. Dev. Auth. Market Transition Fac. Rev. 5.70% 7/1/2005 (1) 6,330 6,627
New Jersey Econ. Dev. Auth. Market Transition Fac. Rev. 5.80% 7/1/2007 (1) 17,800 18,788
</TABLE>
40
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New Jersey Econ. Dev. Auth. Market Transition Fac. Rev. 5.80% 7/1/2008 (1) $ 4,000 $ 4,215
New Jersey Econ. Dev. Auth. Market Transition Fac. Rev. 5.875% 7/1/2011 (1) 6,000 6,301
New Jersey Econ. Dev. Auth. Market Transition Fac. Rev. 7.00% 7/1/2003 (1) 26,195 27,801
New Jersey Econ. Dev. Auth. Rev. 5.50% 5/1/2008 (4) 10,520 11,081
New Jersey GO 6.00% 7/15/2006 3,300 3,534
New Jersey Health Care Fac. Finance Auth. Rev.
(Saint Barnabas Health Care) 5.25% 7/1/2010 (1) 8,050 8,285
New Jersey Health Care Fac. Finance Auth. Rev.
(Saint Barnabas Health Care) 5.25% 7/1/2011 (1) 8,230 8,410
New Jersey Health Care Fac. Finance Auth. Rev.
(Saint Barnabas Health Care) 5.25% 7/1/2012 (1) 2,000 2,029
New Jersey Health Care Fac. Finance Auth. Rev.
(Saint Barnabas Health Care) 5.25% 7/1/2014 (1) 2,850 2,856
New Jersey Sports & Exposition Auth. 6.50% 3/1/2002 (Prere.) 1,340 1,401
New Jersey Sports & Exposition Auth. 6.50% 3/1/2006 3,955 4,125
New Jersey Sports & Exposition Auth. 6.50% 3/1/2007 2,930 3,056
New Jersey Transit Corp. (CTFS Federal Transp. Admin. Grants) 5.25% 9/15/2004 4,000 4,101
New Jersey Transit Corp. (CTFS Federal Transp. Admin. Grants) 5.50% 9/15/2011 (2) 45,000 47,330
New Jersey Transit Corp. (CTFS Federal Transp. Admin. Grants) 5.75% 9/15/2013 (2) 25,000 26,366
New Jersey Transit Corp. (CTFS Federal Transp. Admin. Grants) 5.75% 9/15/2014 (2) 28,470 29,867
New Jersey Transp. Corp. Grant Anticipation Notes 5.50% 9/1/2003 12,500 12,842
New Jersey Transp. Trust Fund Auth. Rev. 5.50% 6/15/2011 (1) 4,250 4,400
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 12/15/2004 (1) 4,000 4,223
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2005 (2) 11,310 11,986
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2008 34,660 37,517
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2009 37,000 40,142
New Jersey Transp. Trust Fund Auth. Rev. 6.50% 6/15/2005 (2) 5,000 5,400
New Jersey Transp. Trust Fund Auth. Rev. 6.50% 6/15/2011 (1) 20,000 22,749
New Jersey Transp. Trust Fund Auth. Rev. 7.00% 6/15/2012 (1) 20,000 23,609
New Jersey Turnpike Auth. Rev. 4.75% 1/1/2006 (ETM) 12,350 12,333
New Jersey Turnpike Auth. Rev. 5.625% 1/1/2015 (1) 8,215 8,497
New Jersey Turnpike Auth. Rev. 5.75% 1/1/2010 (1) 35,220 37,810
New Jersey Turnpike Auth. Rev. 5.90% 1/1/2002 (2) 1,700 1,760
New Jersey Turnpike Auth. Rev. 5.90% 1/1/2002 (Prere.) 6,110 6,327
New Jersey Turnpike Auth. Rev. 5.90% 1/1/2003 (2) 3,000 3,090
New Jersey Turnpike Auth. Rev. 5.90% 1/1/2004 (2) 12,920 13,365
New Jersey Turnpike Auth. Rev. 6.00% 1/1/2005 (2) 22,220 23,036
New Jersey Turnpike Auth. Rev. 6.50% 1/1/2009 (2) 50,000 55,898
New Jersey Turnpike Auth. Rev. VRDO 4.15% 11/8/2000 (3) LOC 5,700 5,700
Rutgers State Univ. NJ GO 6.40% 5/1/2013 4,675 5,241
-----------
$ 592,721
-----------
NEW MEXICO (0.4%)
New Mexico Highway Commission Tax Rev. 5.75% 6/15/2012 16,310 17,286
New Mexico Highway Commission Tax Rev. 6.00% 6/15/2011 12,780 13,878
-----------
$ 31,164
-----------
NEW YORK (13.6%)
Long Island NY Power Auth. Electric System Rev. 5.00% 4/1/2008 (1) 5,000 5,027
Long Island NY Power Auth. Electric System Rev. 5.125% 4/1/2012 (1) 25,195 25,428
Long Island NY Power Auth. Electric System Rev. 5.50% 12/1/2008 (2) 5,000 5,259
Long Island NY Power Auth. Electric System Rev. 5.50% 12/1/2009 (2) 6,000 6,320
Long Island NY Power Auth. Electric System Rev. 5.50% 12/1/2010 (2) 15,000 15,794
Long Island NY Power Auth. Electric System Rev. 5.50% 12/1/2011 (2) 25,000 26,402
Long Island NY Power Auth. Electric System Rev. 5.50% 12/1/2012 (4) 14,500 15,286
</TABLE>
41
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Metro. NY Transp. Auth. Rev. Commuter Fac. 5.00% 7/1/2011 (1) $ 16,625 $ 16,717
Metro. NY Transp. Auth. Rev. Commuter Fac. 5.00% 7/1/2013 (1) 18,000 17,832
Metro. NY Transp. Auth. Rev. Commuter Fac. 5.00% 7/1/2014 (2) 7,770 7,634
Metro. NY Transp. Auth. Rev. Commuter Fac. 5.60% 7/1/2011 4,755 4,916
Metro. NY Transp. Auth. Rev. Commuter Fac. 5.625% 7/1/2012 4,805 4,942
Metro. NY Transp. Auth. Rev. Commuter Fac. 5.75% 7/1/2013 4,880 5,027
Metro. NY Transp. Auth. Rev. Commuter Fac. 5.875% 7/1/2014 5,000 5,166
Metro. NY Transp. Auth. Rev. Commuter Fac. 6.10% 7/1/2007 (1) 3,625 3,921
Metro. NY Transp. Auth. Rev. Commuter Fac. 6.10% 7/1/2008 (1) 1,100 1,195
Metro. NY Transp. Auth. Rev. Dedicated Petroleum Tax 5.25% 4/1/2013 (3) 11,755 11,903
Metro. NY Transp. Auth. Rev. Dedicated Petroleum Tax 5.50% 4/1/2015 (1) 4,500 4,579
Metro. NY Transp. Auth. Rev. Transp. Fac. 0.00% 7/1/2011 21,200 12,197
Metro. NY Transp. Auth. Rev. Transp. Fac. 5.125% 7/1/2012 (4) 10,765 10,878
Metro. NY Transp. Auth. Rev. Transp. Fac. 5.125% 7/1/2013 (4) 16,455 16,520
Metro. NY Transp. Auth. Rev. Transp. Fac. 5.20% 7/1/2005 (2) 5,760 5,923
Metro. NY Transp. Auth. Rev. Transp. Fac. 5.25% 7/1/2009 (4) 20,000 20,731
Metro. NY Transp. Auth. Rev. Transp. Fac. 5.25% 7/1/2010 (4) 2,575 2,662
Metro. NY Transp. Auth. Rev. Transp. Fac. 5.40% 7/1/2003 5,860 5,982
Metro. NY Transp. Auth. Rev. Transp. Fac. 5.50% 7/1/2012 (4) 5,000 5,204
Metro. NY Transp. Auth. Rev. Transp. Fac. 5.875% 7/1/2014 6,285 6,493
Metro. NY Transp. Auth. Rev. Transp. Fac. 7.00% 7/1/2009 (2) 10,000 11,582
Muni. Assistance Corp. for New York City NY 5.20% 7/1/2007 (2) 4,500 4,638
Muni. Assistance Corp. for New York City NY 5.50% 7/1/2001 2,000 2,016
Muni. Assistance Corp. for New York City NY 5.50% 7/1/2002 10,000 10,187
Muni. Assistance Corp. for New York City NY 6.00% 7/1/2004 4,200 4,416
Muni. Assistance Corp. for New York City NY 6.00% 7/1/2006 13,500 14,460
Muni. Assistance Corp. for New York City NY 6.00% 7/1/2008 10,000 10,835
Muni. Assistance Corp. for New York City NY 6.25% 7/1/2005 5,000 5,362
Nassau County NY GO 5.00% 6/1/2004 (2) 5,210 5,295
Nassau County NY GO 5.00% 9/1/2011 (3) 7,550 7,573
Nassau County NY GO 5.00% 9/1/2012 (3) 6,720 6,692
Nassau County NY GO 5.00% 9/1/2013 (3) 5,730 5,655
Nassau County NY GO 7.00% 3/1/2004 7,500 7,964
New York City NY GO 5.25% 8/15/2010 (1) 5,000 5,178
New York City NY GO 5.25% 8/1/2011 (1) 7,000 7,180
New York City NY GO 5.70% 8/1/2007 9,800 10,343
New York City NY GO 5.75% 2/15/2005 (Prere.) 1,245 1,315
New York City NY GO 5.875% 8/15/2012 (3) 7,000 7,408
New York City NY GO 5.90% 8/1/2009 6,125 6,491
New York City NY GO 5.90% 8/1/2010 4,750 5,024
New York City NY GO 6.00% 8/1/2011 5,600 5,928
New York City NY GO 6.00% 8/1/2012 4,000 4,218
New York City NY GO 6.10% 8/1/2002 4,000 4,110
New York City NY GO 6.375% 8/1/2004 3,985 4,161
New York City NY GO 7.00% 2/1/2002 (Prere.) 4,395 4,601
New York City NY GO 7.00% 2/1/2005 605 630
New York City NY GO 7.00% 8/1/2005 6,500 7,141
New York City NY GO 8.00% 4/1/2006 (2) 5,955 6,903
New York City NY GO 8.00% 11/1/2000 (2) 2,175 2,175
New York City NY IDA (USTA National Tennis Center Project) 6.375% 11/15/2007 (4) 6,200 6,685
New York City NY IDA (USTA National Tennis Center Project) 6.40% 11/15/2008 (4) 4,105 4,430
New York City NY IDA (USTA National Tennis Center Project) 6.50% 11/15/2009 (4) 6,745 7,304
New York City NY IDA (USTA National Tennis Center Project) 6.50% 11/15/2010 (4) 3,500 3,762
</TABLE>
42
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.30% 6/15/2006 $ 27,665 $ 28,498
New York City NY Transitional Finance Auth. Rev. 5.00% 11/15/2009 3,550 3,609
New York City NY Transitional Finance Auth. Rev. 5.00% 11/15/2010 16,375 16,604
New York City NY Transitional Finance Auth. Rev. 5.125% 11/1/2010 7,570 7,758
New York City NY Transitional Finance Auth. Rev. 5.125% 11/1/2011 7,245 7,360
New York City NY Transitional Finance Auth. Rev. 5.125% 11/1/2012 7,000 7,065
New York City NY Transitional Finance Auth. Rev. 5.125% 11/1/2013 6,000 6,007
New York City NY Transitional Finance Auth. Rev. 5.25% 11/15/2011 12,585 12,923
New York City NY Transitional Finance Auth. Rev. 5.25% 5/1/2012 3,475 3,545
New York City NY Transitional Finance Auth. Rev. 5.25% 11/15/2012 5,000 5,101
New York City NY Transitional Finance Auth. Rev. 5.50% 11/15/2008 2,000 2,106
New York City NY Transitional Finance Auth. Rev. 5.50% 2/15/2011 3,500 3,665
New York City NY Transitional Finance Auth. Rev. 5.50% 2/15/2012 5,945 6,204
New York City NY Transitional Finance Auth. Rev. 5.75% 8/15/2010 14,740 15,834
New York City NY Transitional Finance Auth. Rev. 5.875% 11/1/2012 6,000 6,454
New York State Dormitory Auth. Rev. (City Univ.) 6.25% 7/1/2003 4,250 4,419
New York State Dormitory Auth. Rev. (City Univ.) 6.25% 7/1/2004 6,570 6,954
New York State Dormitory Auth. Rev. (City Univ.) 6.35% 7/1/2004 2,500 2,638
New York State Dormitory Auth. Rev. (City Univ.) 6.45% 7/1/2005 1,500 1,605
New York State Dormitory Auth. Rev. (City Univ.) 7.00% 7/1/2001 (3) 8,090 8,231
New York State Dormitory Auth. Rev. (City Univ.) 7.00% 7/1/2001 (3)(ETM) 1,910 1,945
New York State Dormitory Auth. Rev.
(Jewish Medical Center) 5.25% 7/1/2010 (1) 4,000 4,103
New York State Dormitory Auth. Rev.
(Jewish Medical Center) 5.25% 7/1/2011 (1) 9,170 9,342
New York State Dormitory Auth. Rev.
(Mental Health Services) 5.25% 2/15/2011 (1) 7,370 7,562
New York State Dormitory Auth. Rev. (New York Univ.) 6.375% 7/1/2001 (3)(Prere.) 1,645 1,700
New York State Dormitory Auth. Rev. (New York Univ.) 6.375% 7/1/2007 (3) 25,355 26,135
New York State Dormitory Auth. Rev. (Second Hosp.) 5.00% 2/15/2010 (4) 4,500 4,536
New York State Dormitory Auth. Rev. (Second Hosp.) 5.10% 2/15/2011 (2) 10,040 10,120
New York State Dormitory Auth. Rev. (Second Hosp.) 5.10% 2/15/2011 (4) 6,285 6,335
New York State Dormitory Auth. Rev. (State Univ.) 5.80% 5/15/2005 5,400 5,669
New York State Dormitory Auth. Rev. (State Univ.) 5.90% 5/15/2006 2,000 2,116
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 7/1/2003 (2) 4,000 4,159
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 7/1/2004 (2) 4,000 4,205
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2012 (1) 16,160 17,603
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2013 (1) 22,285 24,151
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2014 10,660 11,494
New York State Dormitory Auth. Rev. (State Univ.) 6.10% 5/15/2004 (Prere.) 2,000 2,145
New York State Dormitory Auth. Rev. (Univ. of Rochester) 5.75% 7/1/2014 (1) 9,725 10,003
New York State Dormitory Auth. Rev. (Univ. System) 5.25% 7/1/2017 (1) 14,900 14,655
New York State Dormitory Auth. Rev.
(Upstate Community Colleges) 5.25% 7/1/2010 3,920 4,052
New York State Dormitory Auth. Rev.
(Upstate Community Colleges) 5.25% 7/1/2011 3,610 3,711
New York State Energy Research & Dev. Auth. VRDO
(Consolidated Edison) 4.15% 11/8/2000 11,900 11,900
New York State Environmental Fac. Corp.
(Clean Water & Drinking Revolving Funds) 5.25% 6/15/2010 9,245 9,577
New York State Environmental Fac. Corp.
(Clean Water & Drinking Revolving Funds) 5.25% 6/15/2011 9,885 10,163
</TABLE>
43
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York State Environmental Fac. Corp.
(Clean Water & Drinking Revolving Funds) 5.25% 6/15/2012 6,350 6,489
New York State Environmental Fac. Water PCR 5.50% 6/15/2009 (1) 10,000 10,474
New York State GO 6.00% 10/1/2004 4,195 4,417
New York State Local Govt. Assistance Corp. 5.00% 4/1/2012 (3) 8,500 8,511
New York State Medical Care Fac. Finance Agency Rev. 5.375% 2/15/2014 (4) 4,460 4,495
New York State Medical Care Fac. Finance Agency Rev. 6.00% 8/15/2002 (1) 5,350 5,496
New York State Thruway Auth.
(Highway & Bridge Trust Fund) 5.25% 4/1/2009 (3) 4,510 4,671
New York State Thruway Auth.
(Highway & Bridge Trust Fund) 5.25% 4/1/2011 (2) 5,000 5,123
New York State Thruway Auth.
(Highway & Bridge Trust Fund) 5.25% 4/1/2011 (3) 11,615 11,927
New York State Thruway Auth.
(Highway & Bridge Trust Fund) 5.25% 4/1/2012 (3) 6,220 6,349
New York State Thruway Auth.
(Highway & Bridge Trust Fund) 5.25% 4/1/2013 (3) 5,435 5,511
New York State Thruway Auth.
(Highway & Bridge Trust Fund) 5.25% 4/1/2015 (2) 10,000 10,013
New York State Thruway Auth.
(Highway & Bridge Trust Fund) 5.30% 4/1/2008 (1) 7,740 8,003
New York State Thruway Auth.
(Highway & Bridge Trust Fund) 5.40% 4/1/2007 (1) 9,215 9,620
New York State Thruway Auth.
(Highway & Bridge Trust Fund) 6.25% 4/1/2006 (3) 10,000 10,803
New York State Thruway Auth.
(Highway & Bridge Trust Fund) 6.25% 4/1/2010 (4) 16,725 18,558
New York State Thruway Auth.
(Highway & Bridge Trust Fund) 6.25% 4/1/2011 (4) 3,000 3,333
New York State Thruway Auth. (Service Contract) 5.375% 4/1/2009 (1) 16,500 17,208
New York State Thruway Auth. (Service Contract) 5.375% 4/1/2012 (1) 16,520 17,018
New York State Thruway Auth. (Service Contract) 5.75% 4/1/2004 (1) 14,000 14,820
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 6.40% 1/1/2004 9,685 10,177
Onondaga County NY PCR (Anheuser-Busch Cos., Inc. Project) 6.625% 8/1/2006 10,000 10,896
Port Auth. of New York & New Jersey 5.50% 9/15/2008 (3) 5,810 6,051
Suffolk County NY Water Auth. 6.80% 6/1/2012 (ETM) 10,660 12,212
Triborough Bridge & Tunnel Auth. Rev. NY 0.00% 1/1/2003 19,185 17,344
Triborough Bridge & Tunnel Auth. Rev. NY 5.25% 1/1/2010 (4) 11,000 11,355
Triborough Bridge & Tunnel Auth. Rev. NY 5.50% 1/1/2006 (4) 1,000 1,043
Triborough Bridge & Tunnel Auth. Rev. NY 6.00% 1/1/2012 12,000 13,081
Triborough Bridge & Tunnel Auth. Rev. NY 6.60% 1/1/2010 55,325 62,505
-----------
$1,163,064
-----------
NORTH CAROLINA (0.1%)
Cumberland County NC Hosp. Fac. Rev. (Cape Fear Hospital) 5.25% 10/1/2019 10,000 $ 8,848
-----------
OHIO (3.0%)
Butler County OH BAN 4.55% 3/15/2001 2,600 2,603
Cleveland OH GO 5.50% 8/1/2008 (1) 6,295 6,635
Cleveland OH Water Works 5.25% 1/1/2009 (4) 10,110 10,476
Cleveland OH Water Works 5.25% 1/1/2010 (4) 7,000 7,247
Cleveland OH Water Works 5.25% 1/1/2011 (4) 5,745 5,896
Cleveland OH Water Works 5.25% 1/1/2012 (4) 10,695 10,897
Cleveland OH Water Works 6.00% 1/1/2002 (1) 11,190 11,384
</TABLE>
44
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cleveland OH Water Works 6.00% 1/1/2003 (1) $ 2,105 $ 2,170
Cleveland OH Water Works 6.00% 1/1/2004 (1) 6,855 7,153
Cleveland OH Water Works 6.00% 1/1/2005 (1) 4,545 4,792
Cleveland OH Water Works 6.00% 1/1/2006 (1) 2,100 2,235
Cleveland OH Water Works 6.25% 1/1/2005 (2) 4,910 5,093
Franklin County OH Hosp. Rev. 5.75% 5/15/2012 (2) 5,000 5,130
Hamilton County OH Hosp. Fac. Rev. VRDO
(Health Alliance of Greater Cincinnati) 4.35% 11/8/2000 (1) 2,200 2,200
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.625% 9/1/2013 (1) 3,000 3,098
Lorain County OH Hosp. Fac. Rev. VRDO
(Catholic Healthcare Partners) 4.40% 11/8/2000 1,700 1,700
Ohio Air Quality Dev. Auth. VRDO
(Cincinnati Gas & Electric Co. Project) 4.60% 11/2/2000 LOC 1,100 1,100
Ohio Building Auth. (Adult Correctional Building) 5.75% 4/1/2008 5,375 5,727
Ohio Building Auth. (Adult Correctional Building) 5.75% 4/1/2009 (2) 5,485 5,829
Ohio Building Auth. (Adult Correctional Building) 5.90% 10/1/2009 (1) 4,435 4,661
Ohio Building Auth. (Adult Correctional Building) 6.00% 10/1/2007 (2) 3,710 4,008
Ohio Building Auth. (Data Center) 5.75% 10/1/2005 3,070 3,232
Ohio Building Auth. (Highway Safety Building) 5.375% 10/1/2009 (2) 4,605 4,799
Ohio Building Auth. (Highway Safety Building) 5.75% 10/1/2008 (2) 5,055 5,386
Ohio Building Auth. (Highway Safety Building) 6.00% 4/1/2007 (2) 4,640 4,989
Ohio Building Auth. (State Correctional Fac.) 5.70% 10/1/2003 3,305 3,418
Ohio Building Auth. (State Correctional Fac.) 5.70% 10/1/2004 2,725 2,842
Ohio Building Auth. (State Correctional Fac.) 5.80% 10/1/2006 4,360 4,630
Ohio Building Auth. (State Correctional Fac.) 5.90% 10/1/2007 2,500 2,687
Ohio Building Auth. (State Correctional Fac.) 6.50% 10/1/2002 3,790 3,933
Ohio Building Auth. (State Correctional Fac.) 6.50% 10/1/2002 (1) 5,350 5,549
Ohio Building Auth. (State Correctional Fac.) 6.50% 10/1/2003 5,500 5,702
Ohio Building Auth. (State Correctional Fac.) 6.50% 10/1/2003 (1) 5,710 6,019
Ohio Building Auth. (State Correctional Fac.) 6.50% 10/1/2004 2,500 2,592
Ohio GO 7.625% 8/1/2010 3,510 4,284
Ohio Higher Educ. Fac. 5.90% 12/1/2005 8,175 8,444
Ohio Housing Finance Agency Mortgage Rev. 5.025% 3/1/2021 20,550 20,373
Ohio Public Fac. Comm. Higher Educ. Fac. 5.00% 12/1/2009 5,190 5,276
Ohio Public Fac. Comm. Higher Educ. Fac. 5.25% 5/1/2010 (2) 5,950 6,060
Ohio Public Fac. Comm. Higher Educ. Fac. 5.50% 12/1/2006 5,465 5,621
Ohio Turnpike Comm. Rev. 5.50% 2/15/2010 (1) 4,435 4,626
Ohio Water Dev. Auth. 5.00% 6/1/2015 (1) 2,000 1,955
Ohio Water Dev. Auth. 6.00% 12/1/2004 (2)(Prere.) 2,520 2,640
Ohio Water Dev. Auth. 6.00% 12/1/2008 (2) 3,480 3,634
Ohio Water Dev. Auth. VRDO (Mead Corp.) 4.55% 11/2/2000 LOC 2,900 2,900
Ohio Housing Finance Agency Mortgage Rev. 5.45% 9/1/2031 28,000 28,240
-----------
$ 259,865
-----------
OKLAHOMA (1.4%)
Grand River Dam Auth. OK 5.70% 6/1/200 (4) 20,000 20,924
Grand River Dam Auth. OK 5.75% 6/1/2006 (4) 19,350 20,414
Grand River Dam Auth. OK 6.25% 6/1/2011 (2) 7,600 8,479
Grand River Dam Auth. OK 8.00% 6/1/2002 21,000 22,107
Oklahoma Dev. Finance Auth. Rev. (Hillcrest Hosp.) 5.125% 8/15/2010 2,955 2,426
Oklahoma Dev. Finance Auth. Rev. (Hillcrest Hosp.) 5.20% 8/15/2011 3,000 2,415
Oklahoma Dev. Finance Auth. Rev. (Hillcrest Hosp.) 5.625% 8/15/2019 14,445 10,666
Oklahoma Dev. Finance Auth. Rev. (Hillcrest Hosp.) 5.75% 8/15/2012 3,000 2,486
</TABLE>
45
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oklahoma Dev. Finance Auth. Rev. (Hillcrest Hosp.) 5.75% 8/15/2013 $ 2,000 $ 1,634
Oklahoma Dev. Finance Auth. Rev. (Hillcrest Hosp.) 5.75% 8/15/2014 5,805 4,696
Oklahoma Dev. Finance Auth. Rev. (Hillcrest Hosp.) 5.75% 8/15/2015 2,000 1,574
Oklahoma Turnpike Auth. 5.50% 1/1/2009 6,000 6,364
Tulsa OK Ind. Dev. PUT (St. Francis Hosp.) 5.15% 12/15/2003 13,715 13,702
Tulsa OK Metro. Util. Auth. Rev. 7.00% 2/1/2003 4,830 4,928
-----------
$ 122,815
-----------
OREGON (0.9%)
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.50% 2/15/2009 7,715 7,963
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.50% 2/15/2010 9,955 10,268
Oregon Dept. of Administrative Services Lottery Rev. 5.75% 4/1/2010 (4) 7,560 8,087
Oregon Dept. of Administrative Services Lottery Rev. 5.75% 4/1/2011 (4) 8,715 9,288
Oregon Dept. of Administrative Services Lottery Rev. 5.75% 4/1/2012 (4) 2,500 2,649
Oregon Dept. of Administrative Services Lottery Rev. 5.75% 4/1/2013 (4) 3,000 3,163
Port Auth. of Portland OR Airport Rev.
(Portland International Airport) 5.00% 7/1/2013 (3) 2,520 2,426
Portland OR Sewer System Rev. 5.00% 6/1/2010 (3) 12,980 13,146
Portland OR Sewer System Rev. 5.00% 6/1/2012 (3) 13,580 13,613
Portland OR Sewer System Rev. 6.00% 6/1/2007 (3) 5,600 6,037
-----------
$ 76,640
-----------
PENNSYLVANIA (6.2%)
Beaver County PA IDA PCR PUT (Ohio Edison Project) 4.65% 6/1/2004 59,000 57,293
Delaware County PA IDA PCR PUT (PECO Energy Co. Project) 5.20% 10/1/2004 1,500 1,495
Delaware County PA IDA Resource Recovery Rev.
(American Fuel) 6.10% 1/1/2004 5,000 4,915
Delaware County PA IDA Resource Recovery Rev.
(Browning Ferris) 6.00% 1/1/2009 5,355 5,026
Delaware County PA IDA Resource Recovery Rev.
(Browning Ferris) 6.10% 1/1/2007 7,955 7,639
Delaware County PA IDA Resource Recovery Rev.
(Browning Ferris) 6.10% 7/1/2013 9,750 8,943
Geisinger Health System Auth. of PA VRDO
(Penn State Geisinger Health System) 4.60% 11/2/2000 10,600 10,600
Montgomery County PA IDA PCR PUT (PECO Energy) 5.20% 10/1/2004 24,500 24,362
Pennsbury PA School Dist. GO 5.50% 8/15/2014 (3) 6,000 6,077
Pennsylvania COP 4.80% 7/1/2001 (2) 20,000 20,034
Pennsylvania COP 4.90% 7/1/2002 (2) 13,665 13,729
Pennsylvania COP 5.00% 7/1/2003 (2) 4,555 4,590
Pennsylvania Convention Center Auth. 6.25% 9/1/2004 12,525 12,843
Pennsylvania Convention Center Auth. 6.70% 9/1/2014 (1) 4,000 4,328
Pennsylvania Convention Center Auth. 6.70% 9/1/2016 (3)(ETM) 3,000 3,447
Pennsylvania GO 5.00% 6/1/2003 (1) 4,500 4,564
Pennsylvania GO 5.00% 4/15/2005 7,565 7,705
Pennsylvania GO 5.00% 4/15/2007 3,000 3,054
Pennsylvania GO 5.00% 4/15/2008 2,525 2,563
Pennsylvania GO 5.25% 10/15/2005 5,200 5,364
Pennsylvania GO 5.375% 5/15/2013 (3) 3,515 3,590
Pennsylvania GO 5.50% 5/1/2013 (3) 8,025 8,253
Pennsylvania GO 5.90% 11/15/2001 1,500 1,524
Pennsylvania GO 10.00% 4/15/2002 (2) 10,160 10,940
</TABLE>
46
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Allegheny/Delaware Valley) 5.00% 11/15/2003 (1) $ 7,380 $ 7,438
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Allegheny/Delaware Valley) 5.00% 11/15/2004 (1) 9,295 9,373
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Allegheny/Delaware Valley) 5.00% 11/15/2005 (1) 7,690 7,751
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Allegheny/Delaware Valley) 5.00% 11/15/2006 (1) 3,250 3,272
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Univ. of Pittsburgh Medical Center) 5.25% 8/1/2011 (4) 11,195 11,304
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Univ. of Pittsburgh Medical Center) 5.25% 8/1/2012 (4) 2,750 2,752
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Univ. of Pittsburgh Medical Center) 5.25% 8/1/2013 (4) 4,000 3,967
Pennsylvania Housing Finance Agency
Single Family Mortgage Rev. 5.40% 10/1/2024 6,325 6,318
Pennsylvania Intergovernmental Cooperation Auth. Rev. 5.25% 6/15/2010 (3) 9,700 10,005
Pennsylvania Intergovernmental Cooperation Auth. Rev. 5.25% 6/15/2011 (3) 10,000 10,243
Pennsylvania Intergovernmental Cooperation Auth. Rev. 5.25% 6/15/2012 (3) 6,660 6,775
Pennsylvania Intergovernmental Cooperation Auth. Rev. 5.25% 6/15/2013 (3) 5,000 5,052
Pennsylvania Intergovernmental Cooperation Auth. Rev. 5.45% 6/15/2008 (3) 18,095 18,528
Pennsylvania Intergovernmental Cooperation Auth. Rev. 6.00% 6/15/2002 (3) 18,500 18,943
Pennsylvania Turnpike Comm. Oil Franchise Tax Rev. 5.25% 12/1/2011 (2) 11,000 11,303
Philadelphia PA Airport Rev. (Philadelphia Airport Systems) 5.75% 6/15/2011 (3) 4,695 4,959
Philadelphia PA GO 5.125% 5/15/2009 (3) 2,000 2,051
Philadelphia PA GO 5.125% 5/15/2010 (3) 11,695 11,965
Philadelphia PA GO 5.125% 5/15/2011 (3) 12,290 12,485
Philadelphia PA GO 5.125% 5/15/2012 (3) 4,975 5,013
Philadelphia PA GO 5.125% 5/15/2013 (3) 5,000 5,002
Philadelphia PA GO 5.25% 3/15/2010 (4) 1,755 1,814
Philadelphia PA GO 5.25% 3/15/2011 (4) 3,610 3,712
Philadelphia PA GO 5.25% 3/15/2012 (4) 3,000 3,060
Philadelphia PA Gas Works Rev. 5.25% 7/1/2010 (4) 10,180 10,405
Philadelphia PA Gas Works Rev. 5.25% 7/1/2011 (4) 5,000 5,078
Philadelphia PA Gas Works Rev. 5.50% 7/1/2007 (4) 8,025 8,370
Philadelphia PA Gas Works Rev 5.50% 7/1/2009 (4) 10,820 11,272
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev. VRDO
(Children's Hosp. Project) 4.60% 11/2/2000 4,400 4,400
Philadelphia PA Muni. Lease Rev. 6.00% 7/15/2003 3,840 3,872
Philadelphia PA Parking Auth. 5.25% 9/1/2010 (2) 4,875 5,010
Philadelphia PA School Dist. GO 5.25% 4/1/2011 (1) 3,920 4,014
Philadelphia PA School Dist. GO 6.25% 9/1/2005 (2) 5,000 5,356
Philadelphia PA School Dist. GO 6.25% 9/1/2006 (2) 2,000 2,163
Philadelphia PA School Dist. GO 6.25% 9/1/2008 (2) 4,000 4,402
Philadelphia PA School Dist. GO 6.25% 9/1/2009 (2) 2,080 2,301
Philadelphia PA Waste & Waste Water Rev. 5.50% 6/15/2003 (3) 3,000 3,073
Philadelphia PA Water & Waste Water Rev. 6.25% 8/1/2007 (1) 5,000 5,440
Pittsburgh PA GO 5.20% 3/1/2010 (3) 17,000 17,245
Pittsburgh PA Water & Sewer Auth. Rev. 5.60% 9/1/2005 (3)(Prere.) 6,000 6,260
Schuylkill PA Redev. Auth. 6.95% 6/1/2001 (3)(Prere.) 3,995 4,128
Washington County PA Higher Educ. VRDO
(Pooled Equipment Lease Program) 4.45% 11/8/2000 LOC 8,750 8,750
-----------
$ 527,502
-----------
</TABLE>
47
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PUERTO RICO (0.6%)
Puerto Rico Electric Power Auth. Rev. 5.00% 7/1/2010 (1) $ 9,645 $ 9,981
Puerto Rico Electric Power Auth. Rev. 5.00% 7/1/2011 (1) 5,000 5,135
Puerto Rico Electric Power Auth. Rev. 5.00% 7/1/2011 (4) 3,500 3,594
Puerto Rico Electric Power Auth. Rev. 5.125% 7/1/2013 (4) 11,955 12,215
Puerto Rico Electric Power Auth. Rev. 5.25% 7/1/2009 (1) 7,235 7,620
Puerto Rico Muni. Finance Agency 5.75% 8/1/2012 (4) 2,470 2,672
Puerto Rico Muni. Finance Agency 5.875% 8/1/2014 4,000 4,324
Puerto Rico Telephone Auth. Rev. 5.40% 1/1/2008 9,550 9,931
-----------
$ 55,472
-----------
RHODE ISLAND (0.4%)
Rhode Island Consolidated Capital Dev. Loan GO 6.00% 8/1/2005 (1) 3,000 3,184
Rhode Island Consolidated Capital Dev. Loan GO 6.00% 8/1/2006 (1) 3,000 3,210
Rhode Island Depositors Econ. Protection Corp. 6.55% 8/1/2010 (1) 8,385 9,382
Rhode Island Depositors Econ. Protection Corp. 6.55% 8/1/2010 (1)(ETM) 18,465 20,696
-----------
$ 36,472
SOUTH CAROLINA (0.3%)
Piedmont SC Muni. Power Agency Rev. 5.40% 1/1/2007 (1) 1,800 1,862
Piedmont SC Muni. Power Agency Rev. 5.40% 1/1/2007 (1)(ETM) 1,400 1,456
South Carolina Econ. Dev. Auth. (Palmetto Health Alliance) 7.00% 12/15/2010 10,500 10,691
South Carolina Econ. Dev. Auth. (Palmetto Health Alliance) 7.125% 12/15/2015 7,000 7,042
South Carolina Transp. Infrastructure Bank 5.00% 10/1/2010 (1) 8,000 8,103
-----------
$ 29,154
-----------
SOUTH DAKOTA (0.1%)
South Dakota Building Auth. Lease Rev. 5.25% 12/1/2010 (2) 4,800 $ 4,901
-----------
TENNESSEE (0.4%)
Knox County TN Health, Educ. & Housing Board Rev. 5.40% 4/1/2011 3,465 3,272
Knox County TN Health, Educ. & Housing Board Rev. 5.50% 4/1/2012 2,660 2,506
Knox County TN Health, Educ. & Housing Board Rev. 5.50% 4/1/2013 4,495 4,192
Knox County TN Health, Educ. & Housing Board Rev. 5.625% 4/1/2014 2,000 1,880
Knox County TN Health, Educ. & Housing Board Rev. 5.75% 4/1/2019 14,000 12,744
Shelby County TN GO 5.625% 4/1/2005(Prere.) 1,245 1,306
Shelby County TN GO 5.625% 4/1/2012 3,755 3,869
Shelby County TN Health, Educ. & Housing Fac.
Board Hosp. Rev. (Methodist Health Systems) 6.25% 8/1/2006 4,915 5,292
-----------
$ 35,061
-----------
TEXAS (11.7%)
Anderson County TX Rev. (Coffield Prison Farm Project) 5.50% 3/15/2003 (2)(Prere.) 18,290 18,709
Austin TX Combined Util. System Rev. 0.00% 11/15/2009 (2) 5,020 3,195
Austin TX Combined Util. System Rev. 0.00% 11/15/2011 18,100 10,270
Austin TX Combined Util. System Rev. 5.20% 11/15/2003 (1) 3,360 3,425
Austin TX Combined Util. System Rev. 5.30% 5/15/2004 (1) 5,770 5,908
Austin TX Combined Util. System Rev. 5.60% 5/15/2005 (1)(Prere.) 25,000 26,013
Austin TX Combined Util. System Rev. 5.75% 11/15/2003 650 673
Austin TX Combined Util. System Rev. 5.75% 11/15/2003 (4) 6,850 7,094
Austin TX Combined Util. System Rev. 6.00% 11/15/2006 (1) 27,265 29,124
Austin TX Combined Util. System Rev. 7.25% 11/15/2003 (ETM) 395 425
Austin TX Independent School Dist. 0.00% 8/1/2007 3,400 2,443
Austin TX Independent School Dist. 5.75% 8/1/2006 (Prere.) 3,470 3,667
Austin TX Independent School Dist. 5.75% 8/1/2012 1,530 1,585
Birdville TX Independent School Dist. 5.75% 2/15/2003 4,095 4,207
Birdville TX Independent School Dist. 5.75% 2/15/2003 (ETM) 895 920
</TABLE>
48
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Brazos River Auth. TX (Reliant Energy Project) 5.20% 12/1/2018 $ 23,900 $ 23,969
Carrollton TX Independent School Dist. 6.00% 2/15/2011 2,760 2,961
Carrollton TX Independent School Dist. 6.00% 2/15/2013 3,105 3,296
Dallas-Fort Worth TX International Airport Fac.
Improvement Corp. PUT (American Airlines, Inc. Rev.) 5.95% 11/1/2003 29,000 29,158
Dallas-Fort Worth TX International Airport Fac.
Improvement Corp. PUT (American Airlines, Inc. Rev.) 6.05% 11/1/2005 6,250 6,304
Dallas TX Civic Center Refunding & Improvement 4.60% 8/15/2009 (1) 12,000 11,738
Dallas TX Civic Center Refunding & Improvement 4.70% 8/15/2010 (1) 11,000 10,840
Dallas TX Civic Center Refunding & Improvement 4.80% 8/15/2011 (1) 12,635 12,427
Dallas TX Civic Center Refunding & Improvement 4.90% 8/15/2012 (1) 13,240 13,023
Dallas TX Independent School Dist. 5.30% 8/15/2005 (Prere.) 3,780 3,897
Dallas TX Independent School Dist. 5.30% 8/15/2008 1,220 1,251
Dallas TX Independent School Dist. 5.40% 8/15/2005 7,890 8,168
Dallas TX Independent School Dist. 5.40% 8/15/2009 2,550 2,620
Dallas TX Independent School Dist. 5.50% 8/15/2005 (Prere.) 18,300 19,023
Dallas TX Independent School Dist. 5.50% 8/15/2010 5,910 6,082
Dallas TX Independent School Dist. 5.60% 8/15/2003 (Prere.) 2,220 2,285
Dallas TX Independent School Dist. 5.60% 8/15/2004 5,780 5,935
Dallas TX Independent School Dist. 5.70% 8/15/2003 (Prere.) 2,410 2,487
Dallas TX Independent School Dist. 5.70% 8/15/2006 2,340 2,406
Dallas TX Waterworks & Sewer Rev. 7.75% 4/1/2003 16,200 17,367
Grapevine-Colleyville TX Independent School Dist. 8.25% 6/15/2008 3,000 3,664
Gulf Coast TX Waste Disposal Auth. PCR VRDO
(Amoco Oil Co. Project) 4.75% 11/2/2000 3,500 3,500
Harris County TX Health Fac. Dev. Corp. Hosp. Rev.
(Memorial Hosp.) 6.00% 6/1/2008 (1) 6,080 6,487
Harris County TX Health Fac. Dev. Corp. Hosp. Rev.
(Memorial Hosp.) 6.00% 6/1/2010 (1) 1,500 1,608
Harris County TX Health Fac. Dev. Corp. Hosp. Rev. VRDO
(Methodist Hosp. of Houston) 4.60% 11/2/2000 42,020 42,020
Harris County TX Health Fac. Dev. Corp. Rev.
(Christus Health) 5.25% 7/1/2004 9,000 9,014
Harris County TX Health Fac. Dev. Corp. Rev. VRDO
(St. Luke's Episcopal Hosp.) 4.65% 11/2/2000 3,300 3,300
Harris County TX Health Fac. Dev. Corp. Rev. VRDO
(YMCA of the Greater Houston) 4.60% 11/2/2000 LOC 2,500 2,500
Harris County TX Toll Road 6.30% 8/15/2002 (3)(Prere.) 4,470 4,697
Harris County TX Toll Road 6.30% 8/15/2004 (3) 840 879
Harris County TX Toll Road VRDO 4.35% 11/8/2000 2,700 2,700
Houston TX Airport System Rev. 6.00% 7/1/2011 (3) 4,200 4,449
Houston TX Airport System Rev. 6.00% 7/1/2012 (3) 4,460 4,698
Houston TX GO 5.00% 3/1/2004 6,265 6,325
Houston TX GO 5.00% 3/1/2011 4,535 4,546
Houston TX GO 5.10% 3/1/2006 12,200 12,314
Houston TX GO 5.25% 3/1/2010 9,865 10,112
Houston TX GO 5.25% 3/1/2011 6,000 6,105
Houston TX GO 5.80% 3/1/2002 5,080 5,167
Houston TX GO 7.00% 3/1/2008 48,405 54,140
Houston TX Hotel Occupancy Tax Rev. 5.25% 7/1/2007 (4) 6,585 6,737
Houston TX Water & Sewer System Rev. 0.00% 12/1/2000 (2) 6,130 6,107
Houston TX Water & Sewer System Rev. 0.00% 12/1/2010 (2) 5,000 3,006
Houston TX Water & Sewer System Rev. 5.375% 12/1/2010 (4) 5,000 5,177
Houston TX Water & Sewer System Rev. 5.75% 12/1/2015 (1) 3,315 3,379
Houston TX Water & Sewer System Rev. 7.00% 12/1/2001 (2) 3,220 3,307
</TABLE>
49
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Houston TX Water & Sewer System Rev. 7.00% 12/1/2002 (2) $ 4,125 $ 4,329
Houston TX Water & Sewer System Rev. 7.00% 12/1/2003 (2) 3,100 3,318
Lower Colorado River Auth. TX Rev. 5.00% 1/1/2012 2,520 2,537
Lower Colorado River Auth. TX Rev. 5.50% 5/15/2010 4,155 4,362
Lower Colorado River Auth. TX Rev. 5.75% 5/15/2011 (4) 11,200 11,892
Lower Colorado River Auth. TX Rev. 5.75% 5/15/2012 (4) 24,000 25,314
Lower Colorado River Auth. TX Rev. 5.875% 5/15/2014 10,000 10,549
Lower Colorado River Auth. TX Rev. 6.00% 5/15/2007 (4) 46,565 49,992
Lower Neches Valley Auth. TX IDR VRDO
(Mobil Oil Refinancing Corp Project) 4.70% 11/2/2000 7,900 7,900
Lubbock TX Health Fac. Dev. Corp. Rev.
(St. Joseph's Health System) 5.25% 7/1/2010 9,355 9,167
Lubbock Texas Health Fac St Joseph Health System 5.25% 7/1/2009 8,070 8,210
Matagorda County TX Navigation Dist. Rev. PCR PUT
(Reliant Energy Inc.) 5.20% 11/1/2002 4,000 3,985
North Texas Health Fac. Dev. 5.75% 2/15/2010 (1) 4,115 4,304
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2007 (Prere.) 1,335 1,386
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2010 13,775 14,117
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2012 7,500 7,582
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2013 6,000 6,021
San Antonio TX Electric & Gas Rev. 5.50% 2/1/2002 (Prere.) 1,845 1,887
San Antonio TX Electric & Gas Rev. 5.50% 2/1/2004 2,700 2,753
San Antonio TX Electric & Gas Rev. 5.60% 2/1/2007 (Prere.) 745 787
San Antonio TX Electric & Gas Rev. 5.80% 2/1/2006 7,655 8,052
San Antonio TX Electric & Gas Rev. 5.80% 2/1/2006 (ETM) 345 363
Tarrant County TX Health Resources 5.75% 2/15/2013 (1) 7,670 7,757
Tarrant County TX Water Control & Improvement Dist. 4.50% 3/1/2011 (3) 5,000 4,784
Texas GO 0.00% 10/1/2013 10,000 5,012
Texas GO 8.00% 10/1/2007 50,000 59,677
Texas Public Finance Auth. Building Rev. 6.75% 2/1/2002 (1) 5,000 5,027
Texas Public Finance Auth. Building Rev. 6.80% 2/1/2003 (1) 5,000 5,027
Texas Public Finance Auth. Rev. 5.75% 10/1/2004 (Prere.) 13,625 14,205
Texas Public Finance Auth. Rev. GO 4.90% 10/1/2010 32,235 32,333
Texas TRAN 5.25% 8/31/2001 125,000 125,859
Texas Water Finance Assistance GO 5.25% 8/1/2010 6,565 6,732
Texas Water Finance Assistance GO 5.25% 8/1/2012 3,600 3,645
Tomball TX Hosp. Auth. Rev. 5.75% 7/1/2014 8,500 7,526
Tomball TX Hosp. Auth. Rev. 6.00% 7/1/2019 3,600 3,120
Univ. of Texas Refunding Finance System Rev. 7.00% 8/15/2007 14,050 14,587
-----------
$1,002,931
-----------
UTAH (0.8%)
Intermountain Power Agency UT Power Supply Rev. 5.25% 7/1/2009 41,240 42,599
Intermountain Power Agency UT Power Supply Rev. 6.00% 7/1/2012 17,000 17,464
Jordon UT School Dist. 5.75% 6/15/2005 4,235 4,443
Salt Lake County UT Building Auth. Lease Rev. 5.90% 10/1/2006 (1) 4,000 4,202
-----------
$ 68,708
-----------
VIRGIN ISLANDS (0.1%)
Virgin Islands Public Finance Auth. Rev. 6.375% 10/1/2019 5,865 6,018
-----------
VIRGINIA (0.5%)
Arlington County VA IDA Resource Recovery Rev.
(Alexandria/Arlington Waste) 5.375% 1/1/2012 (4) 3,000 3,062
Chesapeake Bay Bridge & Tunnel VA 5.40% 7/1/2005 (3) 6,090 6,310
</TABLE>
50
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Virginia Beach VA Refunding & Public Improvement 5.25% 8/1/2010 $ 9,690 $ 10,079
Virginia Beach VA Refunding & Public Improvement 5.25% 8/1/2011 5,000 5,163
Virginia Beach VA Refunding & Public Improvement 5.25% 8/1/2012 3,000 3,073
Virginia Beach VA Refunding & Public Improvement 5.25% 8/1/2013 1,750 1,778
Virginia Housing Dev. Auth. 7.10% 1/1/2017 8,000 8,257
Virginia Public School Auth. 5.40% 6/1/2009 5,750 5,975
-----------
$ 43,697
-----------
WASHINGTON (2.4%)
King County WA GO 6.00% 12/1/2004 5,000 5,187
King County WA GO 6.10% 12/1/2005 5,000 5,192
King County WA School Dist. 5.50% 12/1/2016 (3) 5,635 5,684
Seattle WA GO 5.60% 1/15/2009 5,020 5,205
Seattle WA Power & Light Rev. 5.00% 7/1/2011 5,715 5,723
Seattle WA Power & Light Rev. 5.10% 5/1/2005 10,575 10,775
Seattle WA Water System Rev. 5.00% 12/1/2003 2,000 2,027
Seattle WA Water System Rev. 5.10% 12/1/2004 4,000 4,077
Snohomish County WA School Dist. 6.50% 12/1/2011 5,825 6,604
Spokane WA Regional Solid Waste Management System 6.50% 1/1/2008 3,500 3,786
Spokane WA Regional Solid Waste Management System 6.50% 1/1/2009 3,000 3,277
Tacoma WA Electric System Rev. 5.50% 1/1/2012 (2) 5,500 5,525
Tacoma WA Electric System Rev. 5.70% 1/1/2003 (2) 5,785 5,923
Tacoma WA Electric System Rev. 5.70% 1/1/2003 (2)(ETM) 1,060 1,086
Washington GO 5.00% 1/1/2010 4,705 4,752
Washington GO 5.00% 7/1/2011 12,870 12,898
Washington GO 5.00% 1/1/2013 4,925 4,841
Washington GO 5.50% 7/1/2002 5,000 5,082
Washington GO 5.50% 7/1/2011 6,755 7,048
Washington GO 5.60% 9/1/2004 5,000 5,182
Washington GO 5.75% 9/1/2008 4,000 4,259
Washington GO 5.75% 5/1/2009 5,000 5,151
Washington GO 6.00% 7/1/2003 5,200 5,391
Washington GO 6.00% 7/1/2004 3,115 3,264
Washington GO 6.10% 6/1/2006 9,495 10,163
Washington GO 6.25% 6/1/2009 11,465 12,623
Washington GO 6.25% 9/1/2009 21,550 21,840
Washington GO 6.25% 2/1/2011 6,680 7,358
Washington Health Care Fac. Auth. (Sisters of Providence) 6.00% 10/1/2002 (2) 5,105 5,240
Washington Health Care Fac. Auth. (Sisters of Providence) 6.00% 10/1/2003 (2) 5,270 5,465
Washington Health Care Fac. Auth. (Sisters of Providence) 6.00% 10/1/2004 (2) 5,515 5,773
Washington Health Care Fac. Auth. (Sisters of Providence) 6.00% 10/1/2005 (2) 4,830 5,096
Washington Health Care Fac. Auth. (Sisters of Providence) 6.00% 10/1/2006 (2) 6,055 6,435
-----------
$ 207,932
-----------
WEST VIRGINIA (0.1%)
West Virginia Building Comm. Rev. 5.25% 7/1/2008 (1) 1,000 1,031
West Virginia School Building Auth. Rev. 5.30% 7/1/2009 (2) 8,000 8,292
-----------
$ 9,323
-----------
WISCONSIN (1.0%)
Green Bay WI PCR (Procter & Gamble) 5.15% 5/1/2004 9,600 9,698
Wisconsin GO 5.00% 5/1/2008 1,000 1,017
Wisconsin GO 5.20% 5/1/2010 4,150 4,217
Wisconsin GO 5.75% 5/1/2012 + 18,000 19,089
Wisconsin GO 5.75% 5/1/2013 + 20,315 21,391
</TABLE>
51
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Wisconsin GO 5.75% 5/1/2014 + $ 20,000 $ 20,944
Wisconsin GO 7.75% 11/1/2004 10,000 11,145
-----------
$ 87,501
-----------
WYOMING (0.1%)
Lincoln County WY PCR VRDO (Exxon Project) 4.60% 11/2/2000 3,000 3,000
Platte County WY PCR (Basin Electric Power Corp.) 4.60% 1/1/2002 2,430 2,433
-----------
$ 5,433
-----------
------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $8,342,792) $8,510,055
------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.5%)
Other Assets--Note B 165,361
Liabilities (122,298)
-----------
$ 43,063
-----------
------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%)
------------------------------------------------------------------------------------------------------------------------
Applicable to 655,349,795 outstanding $.001 par value shares
of beneficial interest (unlimited authorization) $8,553,118
========================================================================================================================
NET ASSET VALUE PER SHARE $ 13.05
========================================================================================================================
*See Note A in Notes to Financial Statements.
For key to abbreviations and other references, see page 80.
</TABLE>
-------------------------------------------------------------------------------
AT OCTOBER 31, 2000, NET ASSETS CONSISTED OF:
Amount Per
(000) Share
-------------------------------------------------------------------------------
Paid in Capital--Note E $8,431,646 $ 12.87
Undistributed Net Investment Income -- --
Overdistributed Net Realized Gains--Note E (45,791) (.07)
Unrealized Appreciation--Note F 167,263 .25
-------------------------------------------------------------------------------
NET ASSETS $8,553,118 $ 13.05
===============================================================================
52
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (100.6%)
------------------------------------------------------------------------------------------------------------------------
ALABAMA (1.2%)
Birmingham AL GO VRDO 4.35% 11/8/2000 (2)LOC $ 6,300 $ 6,300
Birmingham AL Medical Center (Special Care Medical Center) 7.25% 7/1/2015 (1) 6,715 6,729
Medical Clinic Board of Bessemer AL Rev.
(Bessemer Carraway Hosp.) 7.25% 4/1/2015 (1) 5,000 5,110
Medical Clinic Board of Montgomery AL Rev. (Jackson Hosp.) 6.00% 3/1/2026 (2) 5,500 5,581
Mobile AL Water & Sewer Comm. 5.50% 1/1/2010 (3) 4,000 4,130
-----------
$ 27,850
-----------
ALASKA (0.4%)
Anchorage AK Electric Rev. 8.00% 12/1/2009 (1) 2,565 3,153
Anchorage AK Electric Rev. 8.00% 12/1/2010 (1) 2,960 3,686
North Slope Borough AK Capital Appreciation GO 0.00% 6/30/2010 (1) 4,000 2,444
-----------
$ 9,283
-----------
ARIZONA (0.8%)
Maricopa County AZ PCR VRDO (Southern California Edison Co.) 4.65% 11/2/2000 8,600 8,600
Maricopa County AZ Rev. (Samaritan Health Service) 7.00% 12/1/2016 (1) 8,650 10,184
-----------
$ 18,784
-----------
ARKANSAS (0.4%)
North Little Rock AR Electric System Rev. 6.50% 7/1/2010 (1) 3,500 3,941
North Little Rock AR Electric System Rev. 6.50% 7/1/2015 (1) 4,500 5,120
-----------
$ 9,061
-----------
CALIFORNIA (6.0%)
Alameda Corridor CA Transn. Auth. Rev. 0.00% 10/1/2030 (1) 10,000 1,829
California Health Fac. Finance Auth. (Adventist Health Sytem) 6.75% 3/1/2011 (1) 12,000 12,326
California Health Fac. Finance Auth. (Pomona Valley Hosp.) 5.75% 7/1/2015 8,205 8,639
Modesto CA Irrigation Dist. COP 4.75% 7/1/2026 (2) 6,300 5,606
Modesto CA Irrigation Dist. Finance Auth. Rev.
(Woodland Project) 6.50% 10/1/2022 (2) 20,225 23,034
MSR California Public Power Agency (San Juan Project) 6.125% 7/1/2013 (2) 9,000 10,259
MSR California Public Power Agency (San Juan Project) 6.75% 7/1/2020 (1) 13,000 15,378
Sacramento CA Muni. Util. Dist. 5.75% 8/15/2013 (1) 12,360 12,562
Sacramento CA Muni. Util. Dist. 6.50% 9/1/2013 (1) 8,895 10,471
San Joaquin Hills CA Transp. Corridor Agency 0.00% 1/15/2035 (1) 22,445 3,164
San Jose CA Redev. Agency (Merged Area Redev. Project) 4.75% 8/1/2029 (2) 11,600 10,243
Santa Clara CA Redev. Agency (Bayshore North Project) 7.00% 7/1/2010 (2) 2,000 2,354
Santa Rosa CA Waste Water Rev. 6.00% 9/1/2015 (3) 5,000 5,614
South County CA Regional Waste Water Auth. (Gilroy) 5.50% 8/1/2022 (3) 8,000 8,204
Ukiah CA Electric Rev. 6.25% 6/1/2018 (1) 6,330 7,176
-----------
$ 136,859
-----------
COLORADO (4.7%)
Colorado Health Fac. Auth.
(Sisters of Charity Health System Inc.) 6.00% 5/15/2001 (1) 4,525 4,565
Denver CO City & County School Dist. 5.00% 12/1/2023 (3) 25,800 23,570
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2004 (1) 13,750 11,422
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2005 (1) 17,200 13,589
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2007 (1) 12,250 8,709
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2008 (1) 14,355 9,680
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2009 (1) 16,500 10,612
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2015 (1) 5,795 2,587
Northern Colorado Water Conservation Dist. Rev. 6.50% 12/1/2012 (2) 20,575 22,503
-----------
$ 107,237
-----------
</TABLE>
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<TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
DELAWARE (0.6%)
Delaware Health Fac. Auth. (Delaware Medical Center) 7.00% 10/1/2015 (1) $ 6,000 $ 6,517
Dover DE Electric Rev. 5.75% 7/1/2015 (3) 5,225 5,341
Dover DE Electric Rev. 6.10% 7/1/2011 (3) 2,000 2,085
-----------
$ 13,943
-----------
FLORIDA (8.8%)
Broward County FL Airport System Rev. 5.25% 10/1/2010 (1) 11,365 11,576
Coral Springs FL Improvement Dist. Water & Sewer GO 6.00% 6/1/2010 (1) 3,000 3,194
Dade County FL IDA Exempt Fac. Rev. VRDO
(Florida Power & Light Co.) 4.65% 11/2/2000 3,300 3,300
Dade County FL Solid Waste System Rev. 6.00% 10/1/2007 (2) 8,700 9,361
Davie FL Water & Sewer Rev. 6.375% 10/1/2012 (2) 2,620 2,961
Hillsborough County FL School Board COP 5.50% 7/1/2018 (1) 14,945 15,215
Jacksonville FL Electric Auth. Rev. VRDO (Electric System) 4.60% 11/2/2000 1,800 1,800
Orange & Orlando County FL Expressway Auth. 8.25% 7/1/2013 (3) 9,695 12,590
Orange & Orlando County FL Expressway Auth. 8.25% 7/1/2015 (3) 8,360 11,011
Orange & Orlando County FL Expressway Auth 8.25% 7/1/2016 (3)oo 12,295 16,255
Orange County FL Health Fac. Auth. Rev.
(Adventist Health System) 6.25% 11/15/2010 (2) 4,000 4,288
Palm Beach County FL Criminal Justice Fac. Rev. 7.20% 6/1/2014 (3) 16,300 19,692
Palm Beach County FL Criminal Justice Fac. Rev. 7.20% 6/1/2015 (3) 4,000 4,845
Sarasota County FL Public Hosp. Rev.
(Sarasota Memorial Hosp.) 5.75% 10/1/2017 (1) 14,500 14,824
Seacoast FL Util. Auth. Water & Sewer Rev. 5.50% 3/1/2019 (3) 2,000 2,037
St. Lucie County FL PCR VRDO
(Florida Power & Light Co. Project) 4.55% 11/2/2000 500 500
St. Lucie County FL PCR VRDO
(Florida Power & Light Co. Project) 4.60% 11/2/2000 13,125 13,125
St. Lucie County FL Util. System Rev. 6.00% 10/1/2020 (3)(ETM) 2,350 2,491
Tampa FL Util. Rev. 6.75% 10/1/2010 (2) 9,330 10,784
Tampa FL Util. Rev. 6.75% 10/1/2011 (2) 9,965 11,582
Tampa FL Util. Rev. 6.75% 10/1/2012 (2) 10,635 12,384
The School Board of Miami-Dade County FL COP 5.75% 10/1/2013 (4) 2,000 2,107
The School Board of Miami-Dade County FL COP 5.75% 10/1/2014 (4) 1,755 1,841
The School Board of Miami-Dade County FL COP 5.75% 10/1/2015 (4) 5,265 5,492
The School Board of Miami-Dade County FL COP 5.875% 10/1/2016 (4) 3,150 3,300
The School Board of Miami-Dade County FL COP 6.00% 10/1/2017 (4) 5,765 6,099
-----------
$ 202,654
-----------
GEORGIA (4.0%)
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2015 (3) 8,500 8,799
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2016 (3) 7,000 7,211
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2017 (3) 8,000 8,196
Burke County GA Dev. Auth. PCR VRDO
(Georgia Power Co. Plant Vogtle Project) 4.65% 11/2/2000 17,000 17,000
Burke County GA Dev. Auth. PCR VRDO
(Oglethorpe Power Corp.) 4.30% 11/8/2000 (3) 765 765
George L. Smith Georgia World Congress Center Auth. Rev.
(Domed Stadium Project) 5.50% 7/1/2020 (1) 24,740 24,335
George L. Smith Georgia World Congress Center Auth. Rev.
(Domed Stadium Project) 5.70% 7/1/2013 (1) 5,000 5,195
George L. Smith Georgia World Congress Center Auth. Rev.
(Domed Stadium Project) 5.75% 7/1/2014 (1) 5,000 5,185
</TABLE>
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<TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
George L. Smith Georgia World Congress Center Auth. Rev.
(Domed Stadium Project) 5.75% 7/1/2015 (1) $ 3,680 $ 3,792
Henry County GA School Dist. GO 6.45% 8/1/2011 (1) 4,000 4,445
Monroe County GA Dev. Auth. PCR VRDO
(Oglethorpe Power Corp.) 4.65% 11/2/2000 (2) 2,000 2,000
Private Colleges & Univ. Auth. of Georgia (Mercer Univ. Project)6.50% 11/1/2015 (1) 5,000 5,648
-----------
$ 92,571
-----------
HAWAII (1.0%)
Hawaii Airport System Rev. 6.35% 7/1/2007 (1) 8,000 8,461
Hawaii Highway Rev. 5.25% 7/1/2011 1,150 1,163
Honolulu HI City & County GO 8.00% 10/1/2010 8,695 10,776
Honolulu HI City & County GO 8.00% 10/1/2010 (ETM) 2,305 2,886
-----------
$ 23,286
-----------
ILLINOIS (5.9%)
Chicago IL Board of Educ. GO 6.25% 1/1/2011 (1) 7,000 7,743
Chicago IL GO 6.75% 1/1/2035 (3) 40,000 44,668
Chicago IL Public Building Comm. 7.00% 1/1/2020 (1)(ETM) 21,500 25,289
Cook County IL GO 7.25% 11/1/2007 (1) 6,000 6,877
Illinois Dev. Finance Auth. PCR (Illinois Power Co. Project) 7.40% 12/1/2024 (1) 14,000 15,444
Illinois Health Fac. Auth. Rev. (Centegra Health System) 5.25% 9/1/2024 (2) 7,500 6,972
Illinois Regional Transit Auth. GO
(Cook, DuPage, and Kane Counties) 7.20% 11/1/2020 (2) 24,000 28,843
-----------
$ 135,836
-----------
INDIANA (0.6%)
Indiana Muni. Power Agency Rev. 6.125% 1/1/2013 (1)(ETM) 13,250 14,428
KANSAS (0.4%)
Kansas Health System Dev. Auth. (St. Luke Mission) 5.375% 11/15/2016 (1) 9,300 9,207
KENTUCKY (1.7%)
Jefferson County KY Health System Rev. (Jewish Hosp.) 5.75% 1/1/2026 (2) 3,000 2,996
Kentucky Dev. Finance Auth. Hosp. Fac. Rev.
(St. Elizabeth's Medical Center) 6.00% 11/1/2010 (3) 23,885 24,195
Kentucky Educ. Dev. Auth. Medical Center Rev. (Ashland Hosp.) 5.00% 2/1/2018 (4) 2,000 1,869
Kentucky Educ. Dev. Auth. Medical Center Rev. (Ashland Hosp.) 5.00% 2/1/2028 (4) 2,230 2,011
Louisville & Jefferson County KY Regional Airport Auth.
Special Fac. Rev. VRDO (UPS Worldwide Forwarding) 4.65% 11/2/2000 7,500 7,500
-----------
$ 38,571
-----------
LOUISIANA (1.9%)
Jefferson Parish LA Sales Tax Rev. 5.00% 12/1/2022 (4) 7,500 6,917
Jefferson Parish LA Sales Tax Rev. 6.75% 12/1/2006 (3) 5,865 6,104
New Orleans LA GO 0.00% 9/1/2010 (2) 8,500 5,195
New Orleans LA GO 0.00% 9/1/2011 (2) 10,475 6,032
New Orleans LA GO 0.00% 9/1/2013 (2) 9,000 4,576
New Orleans LA GO 6.00% 9/1/2001 (2)(Prere.) 7,750 7,855
Ouachita Parish LA Hosp. Service (Glenwood Medical Center) 5.70% 5/15/2016 (4) 4,900 5,005
Ouachita Parish LA Hosp. Service (Glenwood Medical Center) 5.75% 5/15/2021 (4) 2,950 2,976
-----------
$ 44,660
-----------
MARYLAND (0.6%)
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 7.00% 7/1/2022 (3) 12,025 $ 14,291
-----------
</TABLE>
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<TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (3.9%)
Boston MA GO 6.50% 7/1/2002 (2)(Prere.) 4,750 $ 5,001
Massachusetts College Building Auth. Rev. 0.00% 5/1/2017 (1) 7,460 3,033
Massachusetts Consolidated Loan GO 7.00% 7/1/2009 (3) 22,250 25,389
Massachusetts Dev. Finance Agency Rev. VRDO
(Brooks School) 4.30% 11/2/2000 (1) 100 100
Massachusetts GO VRDO 4.05% 11/2/2000 2,100 2,100
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston College) 6.75% 7/1/2001 (3)(Prere.) 6,385 6,612
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston College) 6.75% 7/1/2011 (3) 210 217
Massachusetts Health & Educ. Fac. Auth. Rev.
(Falmouth Hosp.) 5.50% 7/1/2008 (1) 1,425 1,463
Massachusetts Health & Educ. Fac. Auth. Rev.
(Harvard Pilgrim Health) 5.00% 7/1/2028 (4) 24,500 21,225
Massachusetts Health & Educ. Fac. Auth. Rev.
(Lahey Clinic) 7.85% 7/1/2003 (1) 3,000 3,244
Massachusetts Health & Educ. Fac. Auth. Rev.
(Massachusetts General Hosp.) 6.25% 7/1/2012 (2) 19,150 21,371
Massachusetts Water Resource Auth. GO VRDO 4.25% 11/8/2000 (3) 900 900
-----------
$ 90,655
-----------
MICHIGAN (2.6%)
Detroit MI Sewer System Rev. 5.45% 7/1/2007 (3) 6,850 7,165
Michigan Strategic Fund (Detroit Edison) 7.00% 7/15/2008 (1) 18,375 21,028
Monroe County MI Econ. Dev. Corp. (Detroit Edison) 6.95% 9/1/2022 (3) 25,000 29,665
Univ. of Michigan Hosp. Rev. VRDO 4.65% 11/2/2000 1,200 1,200
-----------
$ 59,058
-----------
MINNESOTA (1.3%)
St. Cloud MN Health Care Rev.
(St. Cloud Hosp. Obligation Group) 5.75% 5/1/2026 (4) 28,690 $ 28,834
-----------
MISSISSIPPI (0.6%)
Jackson County MS Port Fac. VRDO
(Chevron USA Inc. Project) 4.60% 11/2/2000 13,750 $ 13,750
-----------
MISSOURI (0.6%)
Missouri Health & Educ. Fac. Auth. (Lester Cox Medical Center) 5.25% 6/1/2015 (1) 5,000 4,970
Missouri Health & Educ. Fac. Auth. (SSM Health Care) 5.00% 6/1/2022 (1) 7,500 6,999
Missouri Health & Educ. Fac. Auth. VRDO (Washington Univ.) 4.60% 11/2/2000 2,400 2,400
-----------
$ 14,369
-----------
NEBRASKA (4.6%)
Nebraska Public Power Dist. Rev. 0.00% 1/1/2006 (1) 24,465 18,934
Nebraska Public Power Dist. Rev. 0.00% 1/1/2007 (1) 24,485 17,974
Nebraska Public Power Dist. Rev. 0.00% 1/1/2008 (1) 15,000 10,412
Nebraska Public Power Dist. Rev. 5.00% 1/1/2028 (1) 34,000 30,912
Nebraska Public Power Dist. Rev. 5.25% 1/1/2006 (1) 13,775 14,156
Nebraska Public Power Dist. Rev. 5.25% 1/1/2008 (1) 2,230 2,301
Nebraska Public Power Dist. Rev. 5.25% 1/1/2011 (1) 10,000 10,226
-----------
$ 104,915
-----------
NEVADA (0.2%)
Clark County NV GO 6.50% 6/1/2017 (2) 5,000 $ 5,656
-----------
</TABLE>
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<PAGE>
<TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (7.9%)
Atlantic County NJ Public Fac. COP 7.40% 3/1/2012 (3) $ 4,335 $ 5,228
Hoboken-Union City-Weehawken NJ Sewerage Auth. 6.25% 8/1/2014 (1) 10,185 11,417
Hoboken-Union City-Weehawken NJ Sewerage Auth. 6.25% 8/1/2015 (1) 10,820 12,122
New Jersey Econ. Dev. Transp. Project
(NJ Transit Corp. Light Rail Transit System Project) 5.875% 5/1/2015 (4) 10,000 10,529
New Jersey Health Care Fac. Finance Auth. Rev.
(Saint Barnabas Health Care) 5.25% 7/1/2015 (1) 5,750 5,732
New Jersey Health Care Fac. Finance Auth. Rev.
(Saint Clares Riverside Medical Center) 5.75% 7/1/2014 (1) 3,000 3,087
New Jersey Health Care Fac. Finance Auth. Rev.
(Virtua Health) 5.25% 7/1/2014 (4) 10,685 10,709
New Jersey Sports & Exposition Auth. Rev. 6.50% 3/1/2013 (1) 18,795 21,232
New Jersey Sports & Exposition Auth. Rev. VRDO 4.15% 11/2/2000 (1) LOC 600 600
New Jersey Transit Corp. COP 5.50% 9/15/2008 (2) 27,880 29,313
New Jersey Transit Corp. COP 5.50% 9/15/2009 (2) 30,575 32,195
New Jersey Turnpike Auth. Rev. 6.50% 1/1/2013 (1) 30,000 33,974
New Jersey Turnpike Auth. Rev. 6.50% 1/1/2016 (1) 5,000 5,669
-----------
$ 181,807
-----------
NEW MEXICO (0.5%)
Albuquerque NM Hosp. System (Presbyterian Health) 6.375% 8/1/2007 (1) 4,000 4,190
Farmington NM Util. System Rev. 5.75% 5/15/2013 (3) 1,770 1,806
Farmington NM Util. System Rev. 5.75% 5/15/2013 (3)(ETM) 1,230 1,258
Hurley NM PCR VRDO
(Kennecott Sante Fe Corp. Project British Petroleum) 4.60% 11/2/2000 200 200
New Mexico Highway Community Tax Rev. 6.00% 6/15/2015 3,000 3,191
-----------
$ 10,645
-----------
NEW YORK (7.2%)
Long Island NY Power Auth. Electric System General Rev. 0.00% 6/1/2009 (4) 7,200 4,740
Long Island NY Power Auth. Electric System General Rev. 0.00% 6/1/2013 (4) 25,030 13,023
Long Island NY Power Auth. Electric System General Rev. VRDO 4.60% 11/2/2000 LOC 2,200 2,200
Metro. NY Transp. Auth. Rev. Commuter Fac. 4.75% 7/1/2026 (3) 12,680 11,065
Metro. NY Transp. Auth. Rev. Commuter Fac. 5.25% 7/1/2028 (4) 4,750 4,508
Metro. NY Transp. Auth. Rev. Dedicated Petroleum Tax 6.00% 4/1/2020 (1) 18,000 19,424
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 7.00% 6/15/2001 (2)(Prere.) 335 344
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 7.00% 6/15/2009 (2) 1,510 1,548
New York State Dormitory Auth. Rev. (St. John's Univ.) 5.25% 7/1/2025 (1) 6,000 5,728
New York State Energy Research & Dev. Auth. VRDO
(Consolidated Edison) 4.15% 11/8/2000 10,000 10,000
New York State Housing Finance Agency Auth. Rev.
(Nursing Home & Health Care) 4.70% 11/1/2008 (1) 7,015 6,983
New York State Housing Finance Agency Auth. Rev.
(Nursing Home & Health Care) 4.80% 11/1/2009 (1) 13,540 13,501
New York State Housing Finance Agency Auth. Rev.
(Nursing Home & Health Care) 4.90% 11/1/2010 (1) 4,495 4,498
New York State Medical Care Fac. Finance Agency
(Mental Health Services) 6.00% 8/15/2015 (1) 195 205
New York State Thruway Auth. (Service Contract) 5.75% 4/1/2013 (2) 2,500 2,651
New York State Thruway Auth. (Service Contract) 5.75% 4/1/2014 (2) 4,000 4,218
New York State Thruway Auth. (Service Contract) 5.75% 4/1/2015 (2) 4,000 4,195
</TABLE>
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<PAGE>
<TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
Port Auth. of New York & New Jersey Special Obligation Rev.
(JFK International Airport) 5.75% 12/1/2022 (1) $ 7,955 $ 8,067
Suffolk County NY Water Auth. 5.75% 6/1/2013 (2) 7,345 7,511
Triborough Bridge & Tunnel Auth. Rev. NY 4.75% 1/1/2024 (1) 12,500 10,968
Triborough Bridge & Tunnel Auth. Rev. NY 6.00% 1/1/2014 4,500 4,546
Triborough Bridge & Tunnel Auth. Rev. NY 6.00% 1/1/2015 (2) 260 266
Triborough Bridge & Tunnel Auth. Rev. NY
(General Purpose Rev.) 5.00% 1/1/2024 5,000 4,577
Triborough Bridge & Tunnel Auth. Rev. NY
(General Purpose Rev.) 5.20% 1/1/2027 9,250 8,682
Triborough Bridge & Tunnel Auth. Rev. NY
(General Purpose Rev.) 5.25% 1/1/2028 12,325 11,644
-----------
$ 165,092
-----------
NORTH CAROLINA (1.1%)
New Hanover County NC Hosp. Rev.
(New Haven Regional Medical Center Project) 5.00% 10/1/2028 (1) 11,200 10,083
North Carolina Medical Care Rev.
(St. Joseph's Health System) 5.125% 10/1/2028 (1) 1,750 1,604
North Carolina Medical Care Rev. (Wake County Hosp.) 5.25% 10/1/2017 (1) 13,750 13,507
-----------
$ 25,194
-----------
NORTH DAKOTA (0.4%)
Mercer County ND PCR (Basin Electric Power) 6.05% 1/1/2019 (2) 9,500 $ 9,814
-----------
OHIO (2.7%)
Cleveland OH School Dist. GO 5.875% 12/1/2011 (3) 4,720 4,917
Cleveland OH Water Works Rev. 6.25% 1/1/2002 (2)(Prere.) 2,405 2,500
Cleveland OH Water Works Rev. 6.25% 1/1/2015 (2) 95 98
Cuyahoga County OH Hosp. Refunding & Improvement
(Univ. Hosp.) 5.625% 1/15/2021 (1) 11,480 11,458
Franklin County OH Convention Center Rev. 0.00% 12/1/2006 (1) 4,355 3,254
Greater Cleveland OH Regional Transp. Auth. GO 5.65% 12/1/2006 (3)(Prere.) 5,000 5,319
Hamilton County OH Hosp. Fac. Rev. VRDO
(Health Alliance of Greater Cincinnati) 4.35% 11/8/2000 (1) 9,150 9,150
Hamilton County OH Sales Tax Rev.
(Hamilton County Football Project) 5.00% 12/1/2027 (1) 10,000 9,125
Ohio Air Quality Dev. Auth. VRDO
(Cincinnati Gas & Electric Co. Project) 4.60% 11/2/2000 LOC 3,900 3,900
Ohio GO 7.625% 8/1/2009 4,345 5,229
Ohio State Univ. VRDO 4.35% 11/8/2000 2,900 2,900
Toledo OH City Services Special Assesment VRDO 4.35% 11/2/2000 LOC 5,100 5,100
-----------
$ 62,950
-----------
OREGON (1.5%)
Oregon Health, Housing, Educ. & Culture Fac.
(Lewis & Clark College) 6.00% 10/1/2013 (1) 2,250 2,382
Oregon State Dept. of Administrative Services COP 6.00% 5/1/2013 (2) 6,190 6,675
Oregon State Dept. of Administrative Services COP 6.00% 5/1/2014 (2) 6,565 7,057
Oregon State Dept. of Administrative Services COP 6.00% 5/1/2016 (2) 3,175 3,379
Portland OR Sewer System Rev. 5.50% 6/1/2017 (1) 14,250 14,344
-----------
$ 33,837
-----------
PENNSYLVANIA (8.2%)
Allegheny County PA Airport Rev.
(Pittsburgh International Airport) 5.75% 1/1/2013 (1) 4,000 4,181
Armstrong County PA Hosp. Auth. Rev. 6.25% 6/1/2013 (2) 18,400 19,134
</TABLE>
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<PAGE>
<TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
Dauphin County PA General Auth. Health System Rev.
(Pinnacle Health) 5.50% 8/15/2028 (1) $ 9,415 $ 9,314
Delaware Valley PA Regional Finance Auth. Local Govt. Rev. 5.50% 8/1/2028 (2) 56,750 56,139
Geisinger Health System Auth. of Pennsylvania VRDO
(Penn State Geisinger Health System) 4.60% 11/2/2000 7,600 7,600
Pennsylvania Convention Center Auth. Rev. 6.00% 9/1/2019 (3)(ETM) 10,000 10,666
Pennsylvania Convention Center Auth. Rev. 6.70% 9/1/2016 (3)(ETM) 9,970 11,455
Pennsylvania Higher Educ. Fac. Health Services Rev.
(Allegheny/Delaware Valley) 5.875% 11/15/2016 (1) 20,000 20,378
Pennsylvania Turnpike Comm. Rev. 6.00% 6/1/2015 (1) 1,000 1,020
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev. VRDO
(Children's Hosp. Project) 4.60% 11/2/2000 3,200 3,200
Philadelphia PA Water & Waste Water Rev. 7.00% 6/15/2010 (3) 15,000 17,468
Philadelphia PA Water & Waste Water Rev. 7.00% 6/15/2011 (3) 16,500 19,282
Pittsburgh PA Water & Sewer System Rev. 7.25% 9/1/2014 (3)(ETM) 5,000 5,904
Sharon PA Regional Health System Auth. Rev.
(Mercer County PA Health System Rev.) 5.00% 12/1/2028 (1) 2,920 2,577
-----------
$ 188,318
-----------
RHODE ISLAND (0.2%)
Rhode Island Public Building Auth. 6.00% 2/1/2011 (2) 3,805 $ 3,820
-----------
SOUTH CAROLINA (0.6%)
South Carolina Public Service Auth. Rev. 6.25% 1/1/2022 (2) 13,000 $ 13,664
-----------
SOUTH DAKOTA (0.5%)
South Dakota Health & Educ. Fac. Auth. Rev.
(McKennan Hosp.) 7.625% 1/1/2008 (1)(Prere.)10,065 $ 11,628
-----------
TENNESSEE (1.7%)
Johnson City TN Health & Educ. Rev.
(Johnson City Medical Center) 5.25% 7/1/2028 (1) 12,650 12,009
Metro. Govt. Nashville & Davidson County TN
Water & Sewer Rev. 4.75% 1/1/2022 (3) 16,405 14,483
Nashville & Davidson County TN Health & Educ. Fac.
(Meharry Medical College) 6.00% 12/1/2012 (2) 3,405 3,688
Shelby County TN TAN VRDO 4.30% 11/8/2000 5,000 5,000
Tennessee Health, Educ. & Housing Fac.
(Methodist Health System) 5.50% 8/1/2012 (1) 2,500 2,553
Tennessee Housing Dev. Agency 7.125% 7/1/2017 (1) 2,640 2,695
-----------
$ 40,428
-----------
TEXAS (10.2%)
Austin TX Combined Util. System Rev. 5.75% 11/15/2016 (2) 10,000 10,080
Gulf Coast TX Waste Disposal Auth. Environmental Fac. VRDO
(Exxon Mobil Project) 4.70% 11/2/2000 18,300 18,300
Gulf Coast TX Waste Disposal Auth. PCR VRDO (Exxon Project) 4.60% 11/2/2000 6,600 6,600
Harris County TX Hosp. Dist. Rev. 6.00% 2/15/2013 (1) 12,910 13,643
Harris County TX IDA VRDO (Shell Oil Co. Project) 4.60% 11/2/2000 9,050 9,050
Harris County TX Toll Road VRDO 4.35% 11/8/2000 10,175 10,175
Harris County TX Toll Road VRDO 4.35% 11/8/2000 200 200
Houston TX Water & Sewer System Rev. 0.00% 12/1/2019 (4) 59,100 20,045
Houston TX Water & Sewer System Rev. 0.00% 12/1/2021 (4) 40,000 11,938
Houston TX Water & Sewer System Rev. 0.00% 12/1/2025 (4) 33,525 7,816
Houston TX Water & Sewer System Rev. 0.00% 12/1/2027 (4) 28,000 5,805
</TABLE>
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<PAGE>
<TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
Houston TX Water & Sewer System Rev. 0.00% 12/1/2028 (4) $ 39,250 $ 7,667
Houston TX Water Conveyance System 6.25% 12/15/2012 (2) 8,340 9,159
Houston TX Water Conveyance System 6.80% 12/15/2010 (2) 5,490 6,281
Houston TX Water Conveyance System 6.80% 12/15/2011 (2) 8,910 10,196
Lower Colorado River Auth. TX Rev. 5.625% 1/1/2015 (4)(Prere.) 3,055 3,199
Lower Colorado River Auth. TX Rev. 5.75% 5/15/2012 (4) 9,050 9,546
Lower Colorado River Auth. TX Rev. 6.00% 5/15/2013 (4) 12,500 13,362
Northeast Texas Hosp. Auth. (Northeast Medical Center) 5.625% 5/15/2017 (4) 7,425 7,447
Northeast Texas Hosp. Auth. (Northeast Medical Center) 5.625% 5/15/2022 (4) 7,110 7,009
Northeast Texas Hosp. Auth. (Northeast Medical Center) 6.00% 5/15/2009 (4) 3,945 4,225
Northeast Texas Hosp. Auth. (Northeast Medical Center) 6.00% 5/15/2010 (4) 2,000 2,144
San Antonio TX Electric & Gas System Rev. 0.00% 2/1/2007 (3) 15,000 11,057
Texas Muni. Power Agency Rev. 0.00% 9/1/2014 (1) 30,000 14,259
Texas Muni. Power Agency Rev. 0.00% 9/1/2016 (1) 13,650 5,702
Texas Muni. Power Agency Rev. 0.00% 9/1/2017 (1) 15,000 5,872
Texas Turnpike Auth. Dallas Northway Rev.
(President George Bush Turnpike) 0.00% 1/1/2010 (2) 6,000 3,778
-----------
$ 234,555
-----------
UTAH (0.6%)
Intermountain Power Agency Utah Power Supply Rev. 5.75% 7/1/2019 (1) 13,000 $ 13,203
-----------
VIRGINIA (1.7%)
Henry County VA Public Service Auth. 6.25% 11/15/2019 (3) 1,500 1,527
Virginia Commonwealth Transp. Board Federal Highway Rev. 5.50% 10/1/2010 35,000 36,999
-----------
$ 38,526
-----------
WASHINGTON (1.4%)
Chelan County WA Public Util. Dist. (Rock Island Hydro Project) 0.00% 6/1/2009 (1) 10,950 7,137
Chelan County WA Public Util. Dist. (Rock Island Hydro Project) 0.00% 6/1/2015 (1) 12,585 5,697
Chelan County WA Public Util. Dist. (Rock Island Hydro Project) 0.00% 6/1/2017 (1) 11,000 4,373
Chelan County WA Public Util. Dist. (Rock Island Hydro Project) 0.00% 6/1/2026 (1) 10,000 2,276
Chelan County WA Public Util. Dist. (Rock Island Hydro Project) 0.00% 6/1/2025 (1) 11,000 2,653
Snohomish County WA Mukilteo School Dist. 5.65% 12/1/2010 (3) 3,950 4,199
Snohomish County WA Mukilteo School Dist. 5.70% 12/1/2011 (3) 5,000 5,348
-----------
$ 31,683
-----------
WEST VIRGINIA (1.1%)
West Virginia Hosp. Finance Auth. Rev.
(Charleston Medical Center) 5.75% 9/1/2013 (1) 8,000 8,292
West Virginia State Building Comm. Rev.
(Jail & Correctional Fac.) 7.00% 7/1/2011 (1) 7,325 8,631
West Virginia State Building Comm. Rev.
(Jail & Correctional Fac.) 7.00% 7/1/2012 (1) 7,840 9,266
-----------
$ 26,189
-----------
WISCONSIN (0.2%)
Wisconsin Health & Educ. Fac. Auth. Rev.
(St. Luke's Medical Center) 7.10% 8/15/2001 (1) 4,000 4,161
WYOMING (0.1%)
Sublette County WY PCR VRDO (Exxon Project) 4.60% 11/2/2000 3,350 3,350
------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $2,192,281) $2,314,622
------------------------------------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
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<S> <C>
MARKET
VALUE*
(000)
------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-0.6%)
------------------------------------------------------------------------------------------------------------------------
Other Assets--Note B $ 35,772
Liabilities (50,607)
---------
(14,835)
---------
------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%)
------------------------------------------------------------------------------------------------------------------------
Applicable to 189,405,694 outstanding $.001 par value shares
of beneficial interest (unlimited authorization) $2,299,787
========================================================================================================================
NET ASSET VALUE PER SHARE $12.14
========================================================================================================================
* See Note A in Notes to Financial Statements.
** Securities with a value of $6,605,000 have been segregated as initial margin
for open futures contracts. For key to abbreviations and other references, see
page 80.
</TABLE>
-------------------------------------------------------------------------------
AT OCTOBER 31, 2000, NET ASSETS CONSISTED OF:
-------------------------------------------------------------------------------
AMOUNT PER
(000) SHARE
-------------------------------------------------------------------------------
Paid in Capital $2,204,030 $11.63
Undistributed Net Investment Income -- --
Overdistributed Net Realized Gains--Note E (26,498) (.14)
Unrealized Appreciation (Depreciation)--Note F
Investment Securities 122,341 .65
Futures Contracts (86) --
-------------------------------------------------------------------------------
NET ASSETS $2,299,787 $12.14
===============================================================================
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<TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
LONG-TERM TAX-EXEMPT FUND COUPON DATE 000) (000)
------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (100.7%)
------------------------------------------------------------------------------------------------------------------------
ALABAMA (0.4%)
Birmingham AL Airport Auth. 5.375% 7/1/2020 (2) $ 6,585 $ 6,287
ALASKA (0.8%)
Valdez AK Marine Terminal Rev. VRDO
(Exxon Pipeline Co. Project) 4.60% 11/2/2000 12,400 12,400
Arizona (0.9%)
Maricopa County AZ PCR VRDO
(Southern California Edison Co.) 4.65% 11/2/2000 5,000 5,000
Scottsdale AZ IDA (Memorial Hosp.) 6.00% 9/1/2012 (2) 4,000 4,282
Scottsdale AZ IDA (Memorial Hosp.) 6.125% 9/1/2017 (2) 4,700 4,960
-----------
$ 14,242
-----------
CALIFORNIA (8.6%)
Anaheim CA Public Finance Auth. 6.00% 9/1/2013 (4) 7,000 7,905
Anaheim CA Public Finance Auth. 6.00% 9/1/2014 (4) 2,500 2,817
California Dept. of Veteran Affairs 5.45% 12/1/2019 (2) 7,035 7,025
California GO 4.75% 12/1/2028 10,000 8,816
California GO 6.25% 9/1/2012 5,000 5,741
California Health Fac. (Cedars-Sinai Medical Center) 6.25% 12/1/2034 5,000 5,124
California Public Works Board Lease Rev.
(Community College Project) 5.625% 3/1/2016 (2) 11,370 11,787
California Statewide Community Dev. Auth.
(Catholic Healthcare West) 6.50% 7/1/2020 12,000 12,100
California Statewide Community Dev. Auth. PUT
(Irvine Apartments) 5.10% 5/17/2010 10,000 9,756
Fresno CA Sewer Rev. 6.25% 9/1/2010 (2) 6,395 7,270
Los Angeles County CA Public Works Rev. 5.50% 10/1/2011 5,000 5,282
Los Angeles County CA Public Works Rev. 5.50% 10/1/2012 6,750 7,102
San Bernardino CA Medical Center COP 5.50% 8/1/2024 (1) 11,295 11,310
San Bernardino County CA COP (Capital Fac. Project) 6.875% 8/1/2024 (ETM) 18,000 21,528
San Diego CA Unified School Dist. GO 0.00% 7/1/2012 (3) 5,420 3,026
San Diego CA Unified School Dist. GO 0.00% 7/1/2013 (3) 7,160 3,751
San Jose CA Redev. Agency (Merged Area Redev. Project) 4.75% 8/1/2029 (2) 8,400 7,418
Southern California Public Power Auth. (Transmission Project) 0.00% 7/1/2014 8,500 4,159
-----------
$ 141,917
-----------
COLORADO (2.3%)
Colorado Dept. of Transp. 6.00% 6/15/2012 (2) 20,000 21,653
Denver CO City & County Airport Rev. 6.00% 11/15/2013 (2) 7,090 7,501
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2013 (1) 10,000 5,062
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2016 (1) 10,185 4,259
-----------
$ 38,475
-----------
DISTRICT OF COLUMBIA (1.5%)
District of Columbia GO 0.00% 6/1/2012 (1) 19,000 10,389
District of Columbia GO 5.40% 6/1/2012 (2) 5,000 5,079
District of Columbia GO 6.00% 6/1/2011 (1) 8,990 9,698
District of Columbia GO 6.75% 6/1/2005 (1) 40 41
-----------
$ 25,207
-----------
FLORIDA (3.6%)
Florida Board of Educ. Capital Outlay 4.75% 6/1/2028 3,000 2,616
Florida Muni. Power Agency VRDO (Stanton Project) 4.25% 11/8/2000 (1) 7,905 7,905
Florida Turnpike Auth. Rev. 5.00% 7/1/2019 (3) 10,320 9,748
</TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
Orange County FL School Dist. COP 5.375% 8/1/2017 (1) $ 5,000 $ 4,997
Tallahassee FL Health Fac. Rev.
(Tallahassee Memorial Healthcare, Inc. Project) 6.375% 12/1/2030 + 10,000 9,848
Sunrise FL Util. System Rev. 5.50% 10/1/2018 (2) 12,000 12,261
Tampa Bay FL Water Util. System Rev. 5.00% 10/1/2021 (3) 12,860 11,924
-----------
$ 59,299
-----------
GEORGIA (4.8%)
Atlanta GA Airport Rev. 5.875% 1/1/2015 (3) 7,750 8,205
Atlanta GA Airport Rev. 5.875% 1/1/2017 (3) 7,500 7,861
Atlanta GA Airport Rev. 6.25% 1/1/2013 (3) 8,000 8,686
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2022 (3) 10,000 10,102
Burke County GA Dev. Auth. PCR VRDO (Georgia Power Co.) 4.60% 11/2/2000 3,200 3,200
Burke County GA Dev. Auth. PCR VRDO
(Georgia Power Co. Plant Vogtle Project) 4.65% 11/2/2000 2,735 2,735
College Park GA IDA GO (Civic Center) 7.00% 9/1/2010 11,500 13,004
Fulton County GA COP 6.00% 11/1/2015 4,815 5,153
Metro. Atlanta GA Rapid Transit Auth. Rev. 6.25% 7/1/2018 12,170 13,416
Monroe County GA Dev. Auth. PCR VRDO
(Georgia Power Plant) 4.80% 11/2/2000 7,000 7,000
-----------
$ 79,362
-----------
HAWAII (0.9%)
Hawaii GO 5.875% 10/1/2015 (1) 2,860 3,008
Hawaii GO 5.875% 10/1/2016 (1) 3,220 3,369
Honolulu HI GO 5.125% 7/1/2012 (3) 4,000 4,011
Honolulu HI GO 5.125% 7/1/2013 (3) 4,580 4,556
-----------
$ 14,944
-----------
ILLINOIS (5.8%)
Chicago IL Board of Educ. 0.00% 12/1/2013 (2) 5,000 2,481
Chicago IL Board of Educ. 0.00% 12/1/2014 (2) 5,000 2,329
Chicago IL Board of Educ. 0.00% 12/1/2016 (2) 8,545 3,490
Chicago IL Gas Supply Refunding Rev. VRDO
(Peoples Gas Light & Coke Co. Project) 4.30% 11/2/2000 3,700 3,700
Chicago IL Metro. Water Capital Improvement Rev. 7.00% 1/1/2011 20,000 23,312
Chicago IL Public Building Comm. 7.00% 1/1/2020 (1)(ETM) 6,000 7,058
Chicago IL Water Rev. VRDO 4.25% 11/8/2000 LOC 6,100 6,100
Illinois Dev. Finance Auth. (Adventist Health System) 5.50% 11/15/2029 3,305 2,645
Illinois Dev. Finance Auth. PCR (Illinois Power Co. Project) 7.40% 12/1/2024 (1) 8,150 8,991
Illinois Health Fac. Auth. Rev. VRDO
(Univ. of Chicago Hosp. and Health Systems) 4.60% 11/2/2000 (1) 11,895 11,895
Illinois Metro. Pier & Exposition Auth. Rev. 0.00% 12/15/2014 (1) 16,100 7,545
Illinois Metro. Pier & Exposition Auth. Rev. 6.75% 6/1/2010 (1) 6,000 6,750
Illinois Sales Tax Rev. 6.125% 6/15/2013 4,500 4,851
Will County IL Community School Dist. 0.00% 11/1/2013 (4) 10,000 5,021
-----------
$ 96,168
-----------
INDIANA (1.2%)
Indiana Office Building Comm. Rev. (Capitol Complex) 6.90% 7/1/2011 16,875 19,150
KENTUCKY (1.9%)
Kentucky Property & Buildings Comm. Rev. 5.75% 10/1/2014 6,405 6,726
Lexington-Fayette KY Urban County Govt. GO
(Detention Center Project) 4.75% 5/1/2024 17,870 15,628
Louisville & Jefferson County KY Regional Airport Auth.
Special Fac. Rev. VRDO (UPS Worldwide Forwarding) 4.65% 11/2/2000 8,900 8,900
-----------
$ 31,254
-----------
</TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
LOUISIANA (1.7%)
De Soto Parish LA PCR (Southwestern Electric Power Co.) 7.60% 1/1/2019 $ 24,300 $ 25,897
New Orleans LA GO 0.00% 9/1/2016 (2) 5,785 2,431
-----------
$ 28,328
-----------
MAINE (0.6%)
Maine Health & Higher Educ. Fac. Auth Rev. 5.25% 7/1/2023 (1) 10,000 9,386
MARYLAND (1.4%)
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Medlantic/Helix) 5.25% 8/15/2038 (4) 17,500 15,358
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 6.75% 7/1/2030 7,500 7,711
-----------
$ 23,069
-----------
MASSACHUSETTS (7.7%)
Massachusetts Bay Transp. Auth. 7.00% 3/1/2021 15,000 17,623
Massachusetts GO 5.75% 5/1/2002 (Prere.) 5,000 5,192
Massachusetts GO 6.00% 6/1/2001 (Prere.) 500 505
Massachusetts GO 6.00% 6/1/2015 14,000 14,945
Massachusetts GO 6.00% 6/1/2016 10,300 10,939
Massachusetts GO 6.50% 8/1/2011 2,345 2,425
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston Medical Center) 5.00% 7/1/2019 (1) 3,450 3,140
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.70% 7/1/2015 10,000 8,646
Massachusetts Health & Educ. Fac. Auth. Rev.
(Harvard Pilgrim Health) 5.00% 7/1/2018 (4) 9,920 9,005
Massachusetts Health & Educ. Fac. Auth. Rev.
(Univ. of Massachusetts Memorial) 5.00% 7/1/2018 (2) 3,685 3,369
Massachusetts Health & Educ. Fac. Auth. Rev.
(Univ. of Massachusetts Memorial) 5.00% 7/1/2028 (2) 3,500 3,075
Massachusetts Housing Finance Agency 6.125% 11/15/2008 3,500 3,597
Massachusetts Port Auth. Rev. 5.00% 7/1/2018 3,500 3,286
Massachusetts Water Resources Auth. Rev. 5.50% 7/15/2002 (Prere.) 5,000 5,093
Massachusetts Water Resources Auth. Rev. 6.50% 7/15/2019 + 32,000 36,231
-----------
$ 127,071
-----------
MICHIGAN (3.0%)
Detroit MI GO 6.375% 4/1/2007 4,500 4,747
Grand Rapids MI Tax Increment Rev. (Downtown Project) 6.875% 6/1/2024 (1) 7,500 8,128
Michigan Muni. Bond Auth. Rev. Clean Water Revolving Fund 5.875% 10/1/2015 9,250 9,788
Michigan Muni. Bond Auth. Rev. Clean Water Revolving Fund 5.875% 10/1/2016 7,980 8,404
Univ. of Michigan Hosp. Rev. VRDO 4.65% 11/2/2000 4,300 4,300
Wayne Charter County MI Airport Rev. 5.25% 12/1/2018 (1) 15,005 14,108
-----------
$ 49,475
-----------
MISSISSIPPI (1.2%)
Mississippi GO 6.00% 11/1/2013 7,250 7,749
Mississippi GO 6.00% 11/1/2014 10,800 11,511
-----------
$ 19,260
-----------
MISSOURI (0.4%)
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(St. Anthony's Medical Center) 6.25% 12/1/2030 6,750 $ 6,642
-----------
</TABLE>
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<PAGE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
NEVADA (1.9%)
Clark County NV Building Auth. 5.25% 6/15/2016 (3) $ 7,000 $ 6,904
Clark County NV Passenger Fac. Rev. 5.375% 7/1/2014 (1) 14,780 14,951
Humboldt County NV PCR (Idaho Power Co.) 8.30% 12/1/2014 9,100 10,132
-----------
$ 31,987
-----------
NEW HAMPSHIRE (0.6%)
New Hampshire Business Finance Auth.
(Public Service Co. of New Hampshire) PCR 6.00% 5/1/2021 10,000 $ 9,331
-----------
NEW JERSEY (3.8%)
New Jersey Health Care Fac. Auth. Rev.
(Atlantic City Medical Center) 6.80% 7/1/2005 3,500 3,672
New Jersey Sports & Exposition Auth. Rev. 6.50% 3/1/2013 10,000 11,297
New Jersey Sports & Exposition Auth. Rev. 6.50% 3/1/2019 16,745 17,430
New Jersey Transit Corp. COP 5.50% 9/15/2012 (2) 5,000 5,254
New Jersey Transit Corp. COP 6.00% 9/15/2015 (2) 13,000 13,846
New Jersey Turnpike Auth. Rev. 5.625% 1/1/2015 (1) 10,000 10,343
New Jersey Turnpike Auth. Rev. VRDO 4.15% 11/8/2000 (3) LOC 300 300
-----------
$ 62,142
-----------
NEW MEXICO (0.3%)
Hurley NM PCR VRDO
(Kennecott Sante Fe Corp. Project British Petroleum) 4.60% 11/2/2000 2,050 2,050
New Mexico Highway Commission Tax Rev. 6.00% 6/15/2013 3,000 3,220
-----------
$ 5,270
-----------
NEW YORK (10.5%)
Babylon NY Waste Water Fac. GO 9.00% 8/1/2008 (3) 4,900 6,200
Babylon NY Waste Water Fac. GO 9.00% 8/1/2009 (3) 2,800 3,609
Babylon NY Waste Water Fac. GO 9.00% 8/1/2010 (3) 4,900 6,424
Metro. NY Transp. Auth. Rev. Dedicated Petroleum Tax 5.25% 4/1/2026 (1) 4,675 4,436
Metro. NY Transp. Auth. Rev. Dedicated Petroleum Tax 6.00% 4/1/2020 (1) 6,165 6,653
Metro. NY Transp. Auth. Transp. Fac. Rev. 5.70% 7/1/2017 (1) 8,320 8,531
New York City NY GO 7.10% 2/1/2002 (1)(Prere.) 355 372
New York City NY GO 7.10% 2/1/2010 (1) 720 751
New York City NY Muni. Water Finance Auth. 4.75% 6/15/2025 (4) 6,000 5,250
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 7.00% 6/15/2001 (Prere.) 20 21
New York City NY Transitional Finance Auth. Rev. 4.75% 11/1/2023 5,750 5,028
New York City NY Transitional Finance Auth. Rev. 5.00% 5/1/2017 5,000 4,757
New York City NY Transitional Finance Auth. Rev. 6.25% 11/15/2017 5,000 5,406
New York State Dormitory Auth. Rev. (Court Fac.) 5.75% 5/15/2023 (2) 10,000 10,143
New York State Dormitory Auth. Rev.
(Sloan Kettering Cancer Center) 5.75% 7/1/2020 (1) 7,500 7,852
New York State Dormitory Auth. Rev. (State Univ.) 4.75% 5/15/2025 (1) 12,500 10,911
New York State Dormitory Auth. Rev. (State Univ.) 7.50% 5/15/2011 18,900 21,971
New York State Local Govt. Assistance Corp. 5.375% 4/1/2012 5,275 5,402
New York State Local Govt. Assistance Corp. 5.40% 4/1/2013 13,125 13,384
New York State Local Govt. Assistance Corp. 5.40% 4/1/2015 5,700 5,750
New York State Medical Care Fac. Finance Auth. Agency Rev.
(Hosp. & Nursing Home Mortgage Rev.) 6.875% 2/15/2002 (7)(Prere.) 640 672
New York State Medical Care Fac. Finance Auth. Agency Rev.
(Hosp. & Nursing Home Mortgage Rev.) 6.875% 2/15/2032 (7) 4,360 4,541
</TABLE>
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MARKET
MATURITY AMOUNT VALUE*
LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Triborough Bridge & Tunnel Auth. Rev. NY 5.00% 1/1/2015 (4) $ 5,000 $ 4,871
Triborough Bridge & Tunnel Auth. Rev. NY 5.00% 1/1/2016 (4) 5,000 4,819
Triborough Bridge & Tunnel Auth. Rev. NY 5.00% 1/1/2024 6,845 6,265
Triborough Bridge & Tunnel Auth. Rev. NY 5.50% 1/1/2030 7,750 7,573
Triborough Bridge & Tunnel Auth. Rev. NY 6.125% 1/1/2021 10,000 10,909
-----------
$ 172,501
-----------
NORTH CAROLINA (1.6%)
Cumberland County NC Hospital Fac. Rev. (Cape Fear Hosp.) 5.25% 10/1/2024 5,000 4,311
New Hanover County NC Hosp. Rev.
(New Haven Regional Medical Center Project) 5.00% 10/1/2028 (1) 5,000 4,501
North Carolina Eastern Muni. Power Agency Rev. 6.50% 1/1/2018 (ETM) 4,625 5,234
North Carolina Eastern Muni. Power Agency Rev. 7.50% 1/1/2009 (Prere.) 4,935 5,921
North Carolina Medical Care Rev. (Novant Health Project) 5.00% 10/1/2024 3,200 2,918
North Carolina Medical Care Rev. (St. Joseph's Health System) 5.10% 10/1/2018 3,500 3,308
-----------
$ 26,193
-----------
OHIO (2.3%)
Cuyahoga County OH Hosp. Rev. VRDO
(Cleveland Clinic Foundation) 4.40% 11/8/2000 5,700 5,700
Clermont County OH Hosp. Rev. VRDO (Mercy Health Systems) 4.40% 11/8/2000 13,765 13,765
Franklin County OH Hosp. Rev. VRDO (U.S. Health Corp.) 4.35% 11/2/2000 LOC 9,865 9,865
Ohio Turnpike Comm. Rev. 4.50% 2/15/2024 (3) 10,000 8,429
-----------
$ 37,759
-----------
OREGON (0.4%)
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.50% 2/15/2014 7,330 $ 7,371
-----------
PENNSYLVANIA (7.3%)
Allegheny County PA Sanitation Auth. Sewer Rev. 6.00% 12/1/2019 (1) 10,000 10,455
Delaware County PA IDA Resource Recovery Rev.
(Browning Ferris) 6.10% 7/1/2013 15,000 13,759
Delaware Valley PA Regional Finance Auth. Local Govt. Rev. 5.50% 8/1/2028 (2) 10,000 9,892
Pennsylvania GO 6.375% 9/15/2012 13,500 13,977
Pennsylvania Housing Finance Agency Residential Dev. Rev. 7.50% 7/1/2006 3,890 4,068
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev. VRDO
(Children's Hosp. Project) 4.60% 11/2/2000 7,800 7,800
Philadelphia PA Water & Waste Water Rev. 7.00% 6/15/2010 (3) 20,000 23,290
Pittsburgh PA GO 5.25% 9/1/2016 (3) 3,845 3,816
Pittsburgh PA Water & Sewer Auth. Rev. 6.50% 9/1/2013 (3) 10,000 11,336
Sayre PA Health Care Fac. Auth. VRDO (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) 4.35% 11/8/2000 (2) 21,500 21,500
-----------
$ 119,893
-----------
PUERTO RICO (0.2%)
Puerto Rico Electric Power Auth. Rev. 5.25% 7/1/2014 (1) 2,000 2,052
Puerto Rico Electric Power Auth. Rev. 5.25% 7/1/2014 (4) 2,000 2,052
-----------
$ 4,104
-----------
SOUTH CAROLINA (1.3%)
Berkeley County SC Exempt Fac. Ind. Rev. VRDO
(Amoco Chemical Co. Project) 4.75% 11/2/2000 900 900
Piedmont SC Muni. Power Agency Rev. 6.50% 1/1/2015 (3) 12,210 13,721
Piedmont SC Muni. Power Agency Rev. 6.50% 1/1/2015 (3)(ETM) 2,035 2,306
South Carolina Econ. Dev. Auth. (Palmetto Health Alliance) 7.125% 12/15/2015 5,000 5,030
-----------
$ 21,957
-----------
</TABLE>
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MARKET
MATURITY AMOUNT VALUE*
LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TENNESSEE (2.0%)
Johnson City TN Health & Educ. Rev.
(Johnson City Medical Center) 5.125% 7/1/2025 (1)(ETM)$ 15,000 $ 14,020
Knoxville TN Health, Educ. & Housing Board Rev.
(Univ. Health System, Inc.) 5.625% 4/1/2024 21,000 18,597
-----------
$ 32,617
-----------
TEXAS (13.2%)
Brazos County TX Health Dev. Franciscan Service Corp. 5.375% 1/1/2022 (1) 5,750 5,476
Dallas-Fort Worth TX International Airport Fac.
Improvement Corp. PUT (American Airlines, Inc. Rev.) 5.95% 11/1/2003 7,000 7,038
Gulf Coast TX Waste Disposal Auth. PCR VRDO
(Amoco Oil Project) 4.60% 11/2/2000 2,500 2,500
Gulf Coast TX Waste Disposal Auth. PCR VRDO
(Exxon Project) 4.60% 11/2/2000 2,800 2,800
Harris County TX GO 0.00% 10/1/2014 (1) 5,550 2,626
Harris County TX IDA VRDO (Shell Oil Co. Project) 4.60% 11/2/2000 4,300 4,300
Houston TX Hotel Occupancy Tax Rev. 5.50% 7/1/2011 (4) 16,760 17,118
Houston TX Independent School Dist. 0.00% 9/15/2012 (2) 6,150 3,294
Houston TX Water & Sewer System Rev. 0.00% 12/1/2012 (2) 20,500 10,908
Houston TX Water & Sewer System Rev. 6.375% 12/1/2001 (2)(Prere.) 705 734
Houston TX Water & Sewer System Rev. 6.375% 12/1/2017 (2) 5,295 5,493
Lewisville TX Independent School Dist. 0.00% 8/15/2016 5,630 2,358
Lewisville TX Independent School Dist. 0.00% 8/15/2017 6,940 2,723
Lower Colorado River Auth. TX 5.75% 5/15/2012 (4) 5,500 5,801
Lower Colorado River Auth. TX 5.875% 5/15/2016 (4) 27,500 28,734
Lower Colorado River Auth. TX 6.00% 5/15/2011 (4) 12,605 13,628
North East TX Independent School Dist. 5.00% 2/1/2016 6,425 6,186
Round Rock TX Independent School Dist. 0.00% 8/15/2011 (1) 5,000 2,874
San Antonio TX Electric & Gas Rev. 5.00% 2/1/2002 (Prere.) 610 620
San Antonio TX Electric & Gas Rev. 5.00% 2/1/2017 13,525 12,859
Texas City TX IDA (Arco Pipeline Project) 7.375% 10/1/2020 17,000 20,439
Texas Muni. Power Agency Rev. 0.00% 9/1/2013 39,670 20,071
Texas Muni. Power Agency Rev. 0.00% 9/1/2017 (1) 16,425 6,430
Texas Water Dev. Board Rev. 6.50% 7/15/2010 17,425 19,628
Texas Water Dev. Board Rev. 7.05% 8/1/2025 5,655 6,092
Tomball TX Hosp. Auth. Rev. 6.00% 7/1/2025 3,600 3,061
Tomball TX Hosp. Auth. Rev. 6.00% 7/1/2029 5,000 4,187
-----------
$ 217,978
-----------
UTAH (0.2%)
Intermountain Power Agency UT Power Supply Rev. 5.75% 7/1/2019 (1) 3,000 $ 3,047
-----------
VIRGIN ISLANDS (0.3%)
Virgin Islands Pub. Fin. Auth. Rev. 6.50% 10/1/2024 5,000 $ 5,161
-----------
WASHINGTON (2.7%)
Chelan County WA Public Util. Dist. (Rock Island Hydro Project) 0.00% 6/1/2014 (1) 5,000 2,412
Chelan County WA Public Util. Dist. (Rock Island Hydro Project) 0.00% 6/1/2017 (1) 11,685 4,646
Chelan County WA Public Util. Dist. (Rock Island Hydro Project) 0.00% 6/1/2018 (1) 10,000 3,729
Washington Dept. of Ecology COP (State Office Building Project) 5.00% 4/1/2016 27,820 26,247
Washington GO 5.50% 5/1/2018 4,000 4,072
Washington GO 6.75% 2/1/2015 3,450 4,002
-----------
$ 45,108
-----------
</TABLE>
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<TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA (0.6%)
West Virginia Building Comm. Rev. (Jail & Correction Fac.) 7.00% 7/1/2014 (1) $ 8,975 $ 10,647
WISCONSIN (2.1%)
Wisconsin Clean Water Rev. 6.875% 6/1/2011 20,500 23,811
Wisconsin GO 5.75% 5/1/2015 + 10,000 10,415
-----------
$ 34,226
-----------
WYOMING (0.7%)
Lincoln County WY PCR VRDO (Exxon Project) 4.60% 11/2/2000 11,235 $ 11,235
------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $1,602,388) $1,660,463
------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-0.7%)
------------------------------------------------------------------------------------------------------------------------
Other Assets--Note B 27,183
Liabilities (39,055)
-----------
$ (11,872)
-----------
------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%)
------------------------------------------------------------------------------------------------------------------------
Applicable to 153,637,132 outstanding $.001 par value shares
of beneficial interest (unlimited authorization) $1,648,591
========================================================================================================================
NET ASSET VALUE PER SHARE $ 10.73
========================================================================================================================
*See Note A in Notes to Financial Statements.
+Securities with a value of $4,529,000 have been segregated as initial margin
for open futures contracts.
For key to abbreviations and other references, see
page 80.
</TABLE>
-------------------------------------------------------------------------------
AT OCTOBER 31, 2000, NET ASSETS CONSISTED OF:
-------------------------------------------------------------------------------
AMOUNT PER
(000) SHARE
-------------------------------------------------------------------------------
Paid in Capital $1,617,098 $10.53
Undistributed Net Investment Income -- --
Accumulated Net Realized Losses--Note E (27,047) (.18)
Unrealized Appreciation--Note F
Investment Securities 58,075 .38
Futures Contracts 465 --
-------------------------------------------------------------------------------
NET ASSETS $1,648,591 $10.73
===============================================================================
68
<PAGE>
<TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (100.9%)
------------------------------------------------------------------------------------------------------------------------
ALABAMA (1.0%)
Alabama Special Care Fac. (Baptist Health System) 5.875% 11/15/2026 (1) $ 5,000 $ 5,033
Courtland AL Ind. Dev. Board Solid Waste Disposal Rev.
(Champion International Corp. Project) 6.70% 11/1/2029 9,500 9,685
McIntosh AL IDR (Environmental Improvement) 5.375% 6/1/2028 17,000 15,503
-----------
$ 30,221
-----------
ALASKA (0.2%)
North Slope Borough AK GO 7.50% 6/30/2001 (3) 3,000 3,060
Valdez AK Marine Terminal Rev. VRDO
(Exxon Pipeline Co. Project) 4.60% 11/2/2000 4,100 4,100
-----------
$ 7,160
-----------
ARIZONA (2.2%)
Maricopa County AZ Pollution Control Corp. PCR 6.375% 8/1/2015 30,000 30,001
Pima County AZ IDA Multifamily Mortgage (La Cholla Project) 8.50% 7/1/2020 ** 6,515 7,037
Univ. of Arizona Board of Regents Rev. 6.20% 6/1/2016 26,660 29,404
-----------
$ 66,442
-----------
ARKANSAS (0.1%)
North Little Rock AR Electric System Rev. 6.50% 7/1/2015 (1) 3,450 $ 3,925
-----------
CALIFORNIA (9.8%)
ABAG Finance Auth. Nonprofit Corp. California Multifamily Rev.
(Archstone/Redwood) 5.30% 10/1/2008 10,000 10,063
California Statewide Community Dev. Auth. COP
(Catholic Healthcare West) 6.50% 7/1/2020 10,000 10,083
California Statewide Community Dev. Auth. Multifamily Rev.
(Archstone/LeClub) 5.30% 6/1/2008 5,000 5,056
California Statewide Community Dev. Auth. Multifamily Rev.
(Archstone/Oak Ridge) 5.30% 6/1/2029 5,650 5,713
California Statewide Community Dev. Auth. Multifamily Rev.
(Archstone/Pelican Hill) 5.30% 6/1/2008 5,000 5,056
California Statewide Community Dev. Auth. Multifamily Rev.
(Archstone/River Meadows) 5.30% 6/1/2008 5,000 5,056
California Statewide Community Dev. Auth. PUT
(Irvine Apartments) 5.10% 5/17/2010 22,000 21,464
California Statewide Community Dev. Auth. PUT
(Irvine Apartments) 5.25% 5/15/2013 37,785 36,505
California Veterans GO 5.20% 12/1/2010 22,000 22,657
California Veterans GO 5.25% 12/1/2011 38,000 38,992
Los Angeles CA Dept. of Water & Power Waterworks Rev. 4.25% 10/15/2030 (3) 15,015 12,050
Roseville CA North Central Roseville Community Fac. Dist. 5.40% 9/1/2008 2,000 2,039
Roseville CA North Central Roseville Community Fac. Dist. 5.80% 9/1/2017 10,000 9,820
Sacramento CA Muni. Util. Dist. Electric Rev. 5.25% 7/1/2028 18,000 17,045
San Bernardino County CA COP (Capital Fac. Project) 6.875% 8/1/2024 (ETM) 25,220 30,163
San Bernardino County CA COP (Medical Center Funding) 7.00% 8/1/2020 12,180 14,412
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2009 (1) 3,000 2,047
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2016 22,500 14,676
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2017 20,000 12,959
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2034 (1) 10,000 1,498
Southern California Public Power Auth. Rev. 6.00% 7/1/2018 3,985 3,987
Tustin CA Unified School Dist. (Community Fac.) 6.10% 9/1/2002 8,825 8,830
Tustin CA Unified School Dist. (Community Fac.) 6.375% 9/1/2035 7,000 7,056
-----------
$ 297,227
-----------
</TABLE>
69
<PAGE>
<TABLE>
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<S> <C> <C> <C> <C>
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
COLORADO (3.1%)
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2003 (1) $ 8,200 $ 7,159
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2006 (1) 22,000 16,503
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2007 (1) 12,500 8,887
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2008 (1) 14,000 9,441
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2009 (1) 16,195 10,415
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2010 (1) 7,185 4,377
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2012 (1) 26,795 14,462
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2013 (1) 5,000 2,531
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2014 (1) 8,000 3,805
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2015 (1) 5,000 2,232
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2017 (1) 28,740 11,258
E-470 Public Highway Auth. CO Rev. 0.00% 9/1/2018 (1) 5,000 1,836
-----------
$ 92,906
-----------
CONNECTICUT (1.1%)
Connecticut Dev. Auth. PCR (Connecticut Power & Light) 5.85% 9/1/2028 31,475 29,506
Connecticut Dev. Auth. PCR (Connecticut Power & Light) 5.95% 9/1/2028 3,500 3,253
-----------
$ 32,759
-----------
DISTRICT OF COLUMBIA (1.9%)
District of Columbia GO 5.75% 6/1/2010 (1) 15,000 15,883
District of Columbia GO 6.00% 6/1/2012 (1) 7,000 7,539
Metro. Washington D.C. Airport Auth. Rev. 5.50% 10/1/2009 (3) 6,795 7,047
Metro. Washington D.C. Airport Auth. Rev. 5.50% 10/1/2010 (3) 7,270 7,513
Metro. Washington D.C. Airport Auth. Rev. 5.70% 10/1/2007 (1) 12,900 13,451
Metro. Washington D.C. Airport Auth. Rev. 5.875% 10/1/2015 (1) 7,400 7,568
-----------
$ 59,001
-----------
FLORIDA (3.6%)
Citrus County FL PCR (Florida Power Corp.) 6.35% 2/1/2022 6,500 6,677
Hillsborough County FL Aviation Auth. Rev. (Tampa Airport) 5.25% 10/1/2003 (2) 2,000 2,033
Jacksonville FL Electric Auth. Rev. VRDO (Electric System) 4.60% 11/2/2000 17,800 17,800
Lee County FL IDA Health Care Fac. Rev.
(Shell Point Village Project) 5.50% 11/15/2021 8,925 7,636
Lee County FL IDA Health Care Fac. Rev.
(Shell Point Village Project) 5.50% 11/15/2029 7,400 6,108
Lee County FL IDA Health Care Fac. Rev.
(Shell Point Village Project) 5.75% 11/15/2011 1,475 1,391
Lee County FL IDA Health Care Fac. Rev.
(Shell Point Village Project) 5.75% 11/15/2014 1,000 918
Northern Palm Beach County FL Improvement Dist.
Water Control & Improvement Unit Dev. 5.85% 8/1/2013 2,500 2,445
Northern Palm Beach County FL Improvement Dist.
Water Control & Improvement Unit Dev. 6.00% 8/1/2029 2,000 1,895
Orange County FL School Master Lease COP 6.00% 8/1/2008 (1) 11,580 12,547
Orange County FL School Master Lease COP 6.00% 8/1/2009 (1) 12,255 13,340
Orlando FL Special Assessment Rev.
(Conroy Road Interchange Project) 5.25% 5/1/2005 1,695 1,636
Orlando FL Special Assessment Rev.
(Conroy Road Interchange Project) 5.50% 5/1/2010 1,000 944
Orlando FL Special Assessment Rev.
(Conroy Road Interchange Project) 5.80% 5/1/2026 1,000 885
Orlando FL Util. Comm. Rev. 6.75% 10/1/2017 2,200 2,544
</TABLE>
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<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
St. Lucie FL PCR (Florida Power & Light Co. Project) VRDO 4.70% 11/2/2000 $ 9,000 $ 9,000
Tallahassee FL Health Fac. Rev.
(Tallahassee Memorial Healthcare, Inc.) 6.375% 12/1/2030 + 23,000 22,650
-----------
$ 110,449
-----------
GEORGIA (3.4%)
Atlanta GA Water & Wastewater Rev 5.00% 11/1/2029 (3) 9,000 8,140
Burke County GA Dev. Auth. PCR VRDO (Georgia Power Co.) 4.60% 11/2/2000 10,100 10,100
Burke County GA Dev. Auth. PCR VRDO
(Georgia Power Co. Plant Vogtle Project) 4.65% 11/2/2000 9,100 9,100
Cartersville GA Water & Waste Water Fac.
(Anheuser-Busch Cos., Inc.) 7.40% 11/1/2010 5,000 5,839
Dalton County GA Dev. Auth. (Hamilton Health Care System) 5.50% 8/15/2017 (1) 5,000 5,071
Dalton County GA Dev. Auth. (Hamilton Health Care System) 5.50% 8/15/2026 (1) 12,000 11,917
Effingham County GA Dev. Auth. Solid Waste Disposal Rev.
(Fort James Project) 5.625% 7/1/2018 31,050 28,523
Georgia Muni. Electric Auth. Rev. 6.60% 1/1/2018 (1) 5,000 5,702
Monroe County GA Dev. Auth. PCR VRDO
(Oglethorpe Power Corp.) 4.65% 11/2/2000 (2) 5,400 5,400
Savannah GA Hosp. Auth. Rev. (Candler Hosp.) 7.00% 1/1/2003 (Prere.) 13,000 13,891
-----------
$ 103,683
-----------
HAWAII (2.0%)
Hawaii Dept. of Budget & Finance Rev.
(Hawaiian Electric Co. Inc.) 4.95% 4/1/2012 (1) 15,000 14,677
Hawaii Dept. of Budget & Finance Rev.
(Hawaiian Electric Co. Inc.) 5.65% 10/1/2027 (1) 9,750 9,555
Hawaii GO 6.25% 3/1/2007 (3) 5,000 5,420
Hawaii Harbor Capital Improvement Rev. 5.50% 7/1/2027 (1) 18,500 17,690
Honolulu HI City & County Waste Water System Rev. 0.00% 7/1/2017 (3) 6,000 2,345
Honolulu HI City & County Waste Water System Rev. 0.00% 7/1/2018 (3) 2,000 733
Honolulu HI GO 5.125% 7/1/2016 (3) 9,155 8,853
-----------
$ 59,273
-----------
ILLINOIS (3.3%)
Chicago IL Neighborhoods Alive 21 Program GO 6.50% 1/1/2035 (3) 30,000 32,724
Chicago IL Public Building Comm. Rev. 7.00% 1/1/2015 (1)(ETM) 10,000 11,213
Chicago IL Public Building Comm. Rev. 7.00% 1/1/2020 (1)(ETM) 10,000 11,763
Illinois Dev. Finance Auth. PCR (Illinois Power Co. Project) 7.40% 12/1/2024 (1) 20,000 22,063
Illinois Dev. Finance Auth. Rev. (Regency Park Project) 0.00% 4/15/2019 * 6,500 5,265
Illinois Dev. Finance Auth. Rev. (Regency Park Project) 0.00% 4/15/2020 * 6,000 4,860
Illinois Dev. Finance Auth. Solid Waste Disposal Rev.
(Waste Management Project) 5.05% 1/1/2010 4,000 3,508
Illinois Health Fac. Auth. Rev. (Centegra Health System) 5.10% 9/1/2011 (2) 3,105 3,115
Illinois Health Fac. Auth. Rev. (Centegra Health System) 5.25% 9/1/2018 (2) 3,500 3,334
Illinois Health Fac. Auth. Rev. (United Medical Center) 8.125% 7/1/2003 (Prere.) 1,900 2,023
-----------
$ 99,868
-----------
INDIANA (2.2%)
Indiana Health Fac. Finance Auth. Rev. (Ancilla System, Inc.) 7.375% 7/1/2023 19,400 21,853
Indiana Office Building Comm. Rev. (Capitol Complex) 6.90% 7/1/2011 ** 15,660 17,771
Indianapolis IN Local Public Improvement Bond Bank 6.75% 2/1/2014 21,500 24,553
Indianapolis IN Local Public Improvement Bond Bank 6.75% 2/1/2020 2,500 2,638
-----------
$ 66,815
-----------
</TABLE>
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<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
KANSAS (0.3%)
Kansas Dev. Finance Auth. Rev. (Sisters of Charity) 5.00% 12/1/2025 (1) 6,500 5,862
Topeka KS Public Building Comm. Rev. 5.00% 6/1/2027 (1) 3,750 3,387
-----------
$ 9,249
-----------
KENTUCKY (0.5%)
Jefferson County KY Rev. (Jewish Hosp. Health) 5.65% 1/1/2017 (2) 8,000 8,063
Jefferson County KY Rev. (Jewish Hosp. Health) 5.70% 1/1/2021 (2) 2,000 2,002
Kentucky Property & Buildings Comm. Rev. 5.80% 9/1/2006 3,100 3,218
-----------
$ 13,283
-----------
LOUISIANA (1.3%)
Calcasieu Parish LA IDR PCR (Entergy Gulf States Inc.) 5.45% 7/1/2010 5,000 4,654
East Baton Rouge Parish LA PCR VRDO (Exxon Project) 4.60% 11/2/2000 3,900 3,900
Iberia Parish LA Hosp. Services Dist. Rev. 8.00% 5/26/2016 6,250 6,181
West Feliciana Parish LA PCR (Gulf States Util.) 9.00% 5/1/2015 4,000 4,135
West Feliciana Parish LA PCR PUT (Entergy Gulf States Inc.) 5.65% 9/1/2004 19,000 19,102
-----------
$ 37,972
-----------
MAINE (0.2%)
Jay ME Solid Waste Disposal Rev. 6.20% 9/1/2019 6,250 $ 6,181
-----------
MARYLAND (3.2%)
Hagerstown MD Energy Financing Administration
Solid Waste Disp. Rev. (Hagerstown Fiber Project) 0.00% 10/15/2016 * 17,500 2,100
Maryland Econ. Dev. Corp. Rev.
(Chesapeake Bay Conference Center Project) 7.75% 12/1/2031 25,000 25,066
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Medlantic/Helix) 5.25% 8/15/2038 (4) 62,055 54,459
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 6.75% 7/1/2030 15,000 15,422
-----------
$ 97,047
-----------
MASSACHUSETTS (6.2%)
Massachusetts Dev. Finance Agency Resource Recovery Rev.
PUT (Waste Management Inc.) 6.90% 12/1/2009 2,000 2,075
Massachusetts Dev. Finance Agency Rev. VRDO
(Brooks School) 4.30% 11/2/2000 (1) 1,500 1,500
Massachusetts GO 5.75% 10/1/2011 15,320 16,432
Massachusetts GO 5.75% 10/1/2013 6,450 6,840
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.70% 7/1/2015 23,500 20,317
Massachusetts Health & Educ. Fac. Auth. Rev.
(Partners Healthcare System) 5.25% 7/1/2029 5,300 4,572
Massachusetts Health & Educ. Fac. Auth. Rev. VRDO
(Univ. of Mass.) 4.15% 11/8/2000 2,000 2,000
Massachusetts Housing Finance Agency Rev. 5.95% 10/1/2008 (2) 27,485 28,540
Massachusetts Ind. Finance Agency Resource Recovery Rev.
(Refusetech Inc. Project) 6.30% 7/1/2005 34,500 36,024
Massachusetts Ind. Finance Agency Solid Waste Disposal Rev.
(Massachusetts Paper Co. Project) 0.00% 11/1/2012 * 5,677 1,135
Massachusetts Port Auth. Rev. PUT (United Airlines) 5.75% 10/1/2007 16,700 16,586
Massachusetts Water Resources Auth. Rev. 6.50% 7/15/2019 43,700 49,478
Massachusetts Water Resources Auth. Rev. VRDO 4.25% 11/8/2000 (2) 2,600 2,600
-----------
$ 188,099
-----------
</TABLE>
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<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MICHIGAN (3.4%)
Detroit MI GO 6.25% 4/1/2005 $ 13,000 $ 13,636
Detroit MI GO 6.375% 4/1/2006 8,635 9,141
Detroit MI Sewer System Rev. 5.00% 7/1/2027 5,500 5,014
Dickinson County MI Memorial Hosp. System Rev. 7.625% 11/1/2005 855 908
Dickinson County MI Memorial Hosp. System Rev. 8.00% 11/1/2014 5,700 6,447
Flint MI Hosp. Building Auth. (Hurley Medical Center) 5.25% 7/1/2016 2,250 1,847
Michigan Hosp. Finance Auth. Rev. (McLaren Health Care Corp.) 5.00% 6/1/2028 22,000 17,782
Michigan Housing Dev. Auth. Rev. 6.30% 4/1/2004 6,500 6,727
Michigan Public Power Agency Rev. (Belle River Project) 5.50% 1/1/2013 27,000 27,308
Michigan Strategic Fund Limited Obligation Rev.
(UTD Waste Systems Project) 5.20% 4/1/2010 1,500 1,330
Michigan Strategic Fund Limited Obligation Rev. PUT
(Detroit Edison) 4.73% 9/1/2001 12,000 11,991
-----------
$ 102,131
-----------
MINNESOTA (0.9%)
Rochester MN Health Care Fac. Rev. (Mayo Foundation) 5.375% 11/15/2018 8,850 8,741
Rochester MN Health Care Fac. Rev. (Mayo Foundation) 5.50% 11/15/2027 8,000 7,836
Washington County MN Housing & Redev. Auth. Rev.
(Woodland Park Project) 0.00% 5/1/2020 35,070 2,544
Washington County MN Housing & Redev. Auth. Rev.
(Woodland Park Project) 9.75% 5/1/2020 10,035 9,533
-----------
$ 28,654
-----------
MISSISSIPPI (0.9%)
Jackson County MS Port Fac. PUT VRDO
(Chevron USA Inc. Project) 4.60% 11/2/2000 27,150 $ 27,150
-----------
MISSOURI (0.2%)
Missouri Health & Educ. Fac. Auth. Rev.
(St. Luke Mission Health System) 5.375% 11/15/2016 (1) 7,000 6,932
New Hampshire (0.9%)
New Hampshire Business Finance Auth. PCR PUT
(United Illuminating) 4.55% 2/1/2004 10,000 9,764
New Hampshire Business Finance Auth. PCR PUT
(United Illuminating) 5.40% 12/1/2002 12,000 12,044
New Hampshire Health & Higher Educ. Rev.
(Catholic Medical Center) 6.00% 7/1/2017 6,580 6,286
-----------
$ 28,094
-----------
NEW JERSEY (5.3%)
Gloucester County NJ Improvement Auth. Solid Waste
Resource Rev. (Waste Management Inc.) 6.85% 12/1/2029 5,000 5,170
Gloucester County NJ Improvement Auth. Solid Waste
Resource Rev. (Waste Management Inc.) 7.00% 12/1/2029 1,500 1,551
Hudson County NJ Improvement Auth. Solid Waste
Systems Rev. 6.00% 1/1/2029 7,500 6,945
Hudson County NJ Improvement Auth. Solid Waste
Systems Rev. 6.125% 1/1/2019 2,000 1,890
Hudson County NJ Improvement Auth. Solid Waste
Systems Rev. 6.125% 1/1/2029 16,000 14,763
New Jersey Econ. Dev. Auth. Market Transition Fac. Rev. 5.875% 7/1/2011 (1) 8,000 8,401
</TABLE>
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<PAGE>
<TABLE>
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FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New Jersey Econ. Dev. Auth. Rev.
(Kapkowski Road Landfill - DST Project Elizabeth) 6.375% 4/1/2018 $ 2,250 $ 2,197
New Jersey Econ. Dev. Auth. Rev.
(Kapkowski Road Landfill - DST Project Elizabeth) 6.375% 4/1/2031 27,000 25,848
New Jersey Econ. Dev. Auth. Rev.
(Kapkowski Road Landfill - DST Project Elizabeth) 6.50% 4/1/2018 1,000 978
New Jersey Econ. Dev. Auth. Special Fac. Rev.
(Continental Airlines, Inc. Project) 6.25% 9/15/2019 11,375 10,657
New Jersey Econ. Dev. Auth. Special Fac. Rev.
(Continental Airlines, Inc. Project) 6.625% 9/15/2012 25,900 26,205
New Jersey Sports & Exposition Auth. Rev. 6.50% 3/1/2013 15,000 16,945
New Jersey Transit Corp. COP 5.50% 9/15/2010 (2) 28,085 29,592
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2011 (1) 10,000 10,722
-----------
$ 161,864
-----------
NEW MEXICO (0.6%)
Hurley NM PCR VRDO (Kennecott Sante Fe Corp.) 4.60% 11/2/2000 9,900 9,900
New Mexico Highway Community Tax Rev. 6.00% 6/15/2014 8,000 8,560
-----------
$ 18,460
-----------
New York (9.5%)
Long Island NY Power Auth. Electric System Rev. 0.00% 12/1/2006 (4) 5,000 3,760
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2011 (4) 16,690 9,805
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2012 (4) 15,100 8,360
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2015 (4) 10,000 4,585
Metro. NY Transit Auth. Rev. (Dedicated Petroleum Tax) 4.75% 4/1/2028 (3) 12,080 10,479
Metro. NY Transit Auth. Rev. (Dedicated Petroleum Tax) 6.00% 4/1/2020 (1) 18,000 19,424
Metro. NY Transit Auth. Rev. (Service Contract) 7.375% 7/1/2008 22,870 25,379
Metro. NY Transp. Auth. Rev. Transp. Fac. 4.75% 7/1/2024 (1) 3,700 3,242
Metro. NY Transp. Auth. Rev. Transp. Fac. 5.625% 7/1/2027 13,480 13,187
Metro. NY Transp. Auth. Rev. Transp. Fac. 6.00% 7/1/2019 30,855 31,818
Metro. NY Transp. Auth. Rev. Transp. Fac. 6.00% 7/1/2024 13,000 13,316
New York City NY GO VRDO 4.60% 11/2/2000 (1) 400 400
New York Local Govt. Assistance Corp. 6.00% 4/1/2005 (Prere.) 1,155 1,245
New York State Dormitory Auth. Rev. (City Univ.) 6.375% 7/1/2008 1,340 1,396
New York State Dormitory Auth. Rev. (City Univ.) 7.50% 7/1/2010 5,500 6,295
New York State Dormitory Auth. Rev. (State Univ.) 7.50% 5/15/2013 11,500 13,926
New York State Housing Finance Agency Auth. Rev.
(Nursing Home & Health Care) 4.90% 11/1/2010 (1) 9,730 9,737
New York State Housing Finance Agency Auth. Rev.
(Nursing Home & Healthcare) 5.00% 11/1/2011 8,760 8,766
New York State Housing Finance Agency Auth. Rev.
(Nursing Home & Healthcare) 5.10% 11/1/2012 10,685 10,706
New York State Local Govt. Assistance Corp. 6.00% 4/1/2016 5,245 5,462
Niagra Falls NY COP (High School Fac.) 5.875% 6/15/2019 (1) 8,000 8,288
Port Auth. of New York & New Jersey Special Obligation Rev.
(JFK International Airport) 6.25% 12/1/2008 (1) 4,000 4,376
Suffolk County NY IDR (Nissequogue Cogen Partners Fac.) 4.875% 1/1/2008 1,500 1,431
Suffolk County NY IDR (Nissequogue Cogen Partners Fac.) 5.30% 1/1/2013 1,750 1,571
Suffolk County NY IDR (Nissequogue Cogen Partners Fac.) 5.50% 1/1/2023 3,500 2,972
Triborough Bridge & Tunnel Auth. NY Rev. 4.75% 1/1/2024 (1) 15,000 13,161
Triborough Bridge & Tunnel Auth. NY Rev.
(Convention Center Project) 7.25% 1/1/2010 13,500 15,181
Triborough Bridge & Tunnel Auth. NY Rev.
(General Purpose Rev.) 5.50% 1/1/2017 10,000 10,286
</TABLE>
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<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Westchester County Health Care Corp. Rev. 5.875% 11/1/2025 + 17,500 17,196
Westchester County Health Care Corp. Rev. 6.00% 11/1/2030 + 12,500 12,373
-----------
$ 288,123
-----------
NORTH CAROLINA (1.1%)
New Hanover County NC Hosp. Rev.
(New Haven Regional Medical Center Project) 5.75% 10/1/2016 (2) 12,500 12,851
North Carolina Eastern Muni. Power Agency Rev. 6.50% 1/1/2018 (ETM) 6,665 7,542
North Carolina Medical Care Comm. Retirement Fac. First
Mortgage Rev. (United Methodist Retirement Home Project.) 7.25% 10/1/2032 13,000 12,592
-----------
$ 32,985
-----------
OHIO (3.2%)
Butler County OH Transp. Improvement Dist. Rev. 5.50% 4/1/2009 (4) 3,000 3,163
Lucas County OH Hosp. Fac. Rev. (Flower Memorial Hosp.) 8.125% 12/1/2001 (Prere.) 8,900 9,406
Montgomery County OH Hosp. Fac. Rev. (Grandview Hosp.) 5.20% 12/1/2006 (9) 5,000 5,125
Montgomery County OH Hosp. Fac. Rev. (Grandview Hosp.) 5.25% 12/1/2004 (9) 2,250 2,297
Montgomery County OH Hosp. Fac. Rev. (Grandview Hosp.) 5.35% 12/1/2008 (9) 4,615 4,768
Montgomery County OH Hosp. Fac. Rev. (Grandview Hosp.) 5.375% 12/1/2005 (9) 2,400 2,470
Montgomery County OH Hosp. Fac. Rev. (Grandview Hosp.) 5.40% 12/1/2009 (9) 3,850 3,992
Montgomery County OH Hosp. Fac. Rev. (Grandview Hosp.) 5.75% 12/1/2007 (9) 3,300 3,486
Ohio Air Quality Dev. Auth. PCR PUT (Cleveland Electric) 4.60% 10/1/2003 4,500 4,380
Ohio Air Quality Dev. Auth. PCR PUT (Ohio Edison Co.) 5.80% 12/1/2004 10,000 10,144
Ohio Air Quality Dev. Auth. VRDO
(Cincinnati Gas & Electric Co. Project) 4.60% 11/2/2000 LOC 400 400
Ohio Water Dev. Auth. PCR PUT (Cleveland Electric) 4.60% 10/1/2003 3,550 3,460
Ohio Water Dev. Auth. PCR PUT
(Pennsylvania Power Co. Project) 5.90% 12/4/2004 5,200 5,237
Ohio Water Dev. Auth. PCR PUT (Toledo Edison) 5.25% 9/1/2002 6,000 5,913
Ohio Water Dev. Auth. PCR PUT (Toledo-Edison) 5.58% 6/15/2004 18,800 18,726
Parma OH Hosp. Improvement Rev.
(Parma Community General Hosp.) 5.35% 11/1/2018 2,500 2,200
Scioto County OH Marine Terminal Fac.
(Norfolk Southern Corp. Project) 5.30% 8/15/2013 14,750 13,346
-----------
$ 98,513
-----------
OKLAHOMA (1.0%)
Garfield County OK IDA PCR VRDO
(Oklahoma Gas & Electric Co. Project) 4.60% 11/8/2000 1,900 1,900
Jackson County OK Memorial Hosp. Auth. Rev.
(Jackson Memorial) 6.75% 8/1/2004 2,935 2,834
Jackson County OK Memorial Hosp. Auth. Rev.
(Jackson Memorial) 7.30% 8/1/2015 4,000 3,719
Norman OK Regional Hosp. Auth. 5.625% 9/1/2016 (1) 4,510 4,545
Oklahoma Dev. Finance Auth. (Hillcrest Hosp.) 5.625% 8/15/2029 22,850 15,696
-----------
$ 28,694
-----------
OREGON (1.3%)
Klamath Falls OR Electric Rev. 5.50% 1/1/2007 11,000 10,434
Klamath Falls OR Electric Rev. 5.75% 1/1/2013 20,000 18,395
Oregon State Department Administrative Services COP 5.70% 5/1/2016 (2) 3,500 3,732
Portland OR Sewer System Rev. 5.50% 6/1/2017 (1) 5,000 5,033
Umatilla County OR Hosp. Fac. Auth. Rev.
(Catholic Health Initiative) 5.75% 12/1/2020 3,000 3,014
-----------
$ 40,608
-----------
</TABLE>
75
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PENNSYLVANIA (9.5%)
Allegheny County PA Airport Rev.
(Pittsburgh International Airport) 5.75% 1/1/2011 (1) $ 6,000 $ 6,306
Beaver County PA IDA PCR PUT (Cleveland Electric Project) 4.60% 10/1/2003 12,950 12,605
Beaver County PA IDA PCR PUT (Toledo Edison) 4.85% 6/1/2004 20,850 20,315
Bucks County PA IDA (Chandler Health Care) 5.70% 5/1/2009 1,800 1,657
Bucks County PA IDA (Chandler Health Care) 6.20% 5/1/2019 1,250 1,090
Delaware County PA Hosp. Auth.
(Crozer Chester Medical Center) 5.125% 12/1/2013 3,400 2,881
Delaware County PA Hosp. Auth.
(Crozer Chester Medical Center) 5.30% 12/1/2027 8,905 6,781
Delaware County PA IDA Resource Recovery Rev.
(Browning Ferris) 5.50% 1/1/2002 5,000 4,951
Delaware County PA IDA Resource Recovery Rev.
(Browning Ferris) 6.10% 1/1/2006 5,500 5,318
Delaware County PA IDA Resource Recovery Rev.
(Browning Ferris) 6.10% 7/1/2013 30,500 27,976
Geisinger Health System Auth. of Pennsylvania Rev.
(Penn State Geisinger Health System) 5.50% 8/15/2023 27,700 27,099
Geisinger Health System Auth. of Pennsylvania VRDO
(Penn State Geisinger Health System) 4.60% 11/2/2000 13,630 13,630
Langhorne PA Higher Educ. & Health Auth. Rev.
(Lower Bucks Hosp.) 7.30% 7/1/2012 4,500 3,352
Langhorne PA Higher Educ. & Health Auth. Rev.
(Lower Bucks Hosp.) 7.35% 7/1/2022 8,625 6,211
Montgomery County PA Higher Educ. & Health Auth. Rev.
(Brittany Point Project) 8.50% 1/1/2003(Prere.) 5,000 5,497
Montgomery County PA IDA PCR PUT (PECO Energy) 5.20% 10/1/2004 16,275 16,183
Pennsylvania Convention Center Auth. Rev. 6.60% 9/1/2009 (4) 2,500 2,707
Pennsylvania Convention Center Auth. Rev. 6.70% 9/1/2014 (4) 3,500 3,787
Pennsylvania Convention Center Auth. Rev. 6.75% 9/1/2019 (4) 3,695 3,975
Pennsylvania Econ. Dev. Auth. Rev. (Colver Project) 7.05% 12/1/2010 2,500 2,550
Pennsylvania Econ. Dev. Auth. Rev. (Colver Project) 7.125% 12/1/2015 14,000 14,312
Pennsylvania Housing Finance Agency Rev. 7.60% 7/1/2013 10,000 10,468
Philadelphia PA Auth. Ind. Dev. Special Fac. Rev.
(US Airways, Inc. Project) 7.50% 5/1/2010 15,000 14,996
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Seashore Hosp.) 7.00% 8/15/2012 3,540 3,699
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Seashore Hosp.) 7.00% 8/15/2017 1,000 1,045
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Seashore Hosp.) 7.00% 8/15/2022 500 522
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Methodist Hosp.) 7.75% 7/1/2004 (Prere.) 11,770 13,100
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Roxborough Memorial Hosp.) 7.25% 3/1/2024 9,390 9,042
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev. VRDO
(Children's Hosp. Project) 4.60% 11/2/2000 1,900 1,900
Philadelphia PA Muni. Auth. Rev. 6.125% 7/15/2008 4,000 4,092
Philadelphia PA Muni. Auth. Rev. 6.25% 7/15/2013 5,785 5,855
Philadelphia PA Muni. Auth. Rev. 6.30% 7/15/2017 1,750 1,757
Philadelphia PA Muni. Auth. Rev. 8.625% 11/15/2016 620 649
Philadelphia PA Water & Waste Water Rev. 7.00% 6/15/2011 (3) 21,500 25,125
Schuylkill County PA IDA (Waste Managment) 5.10% 10/1/2019 2,400 2,139
</TABLE>
76
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Westmoreland County PA IDA (Waste Management) 5.10% 5/1/2018 $ 4,400 $ 3,923
-----------
$ 287,495
-----------
RHODE ISLAND (0.2%)
Rhode Island Convention Center Auth. Rev. 5.75% 5/15/2020 (2) 5,000 $ 5,087
-----------
SOUTH CAROLINA (0.7%)
South Carolina Econ. Dev. Auth. (Palmetto Health Alliance) 7.375% 12/15/2021 19,500 $ 19,695
-----------
TENNESSEE (2.0%)
Jackson TN Hosp. Rev. (Madison County General Hosp.) 5.00% 4/1/2028 (2) 13,750 12,204
Johnson City TN Health & Educ. Rev.
(Johnson City Medical Center) 5.125% 7/1/2025 (1)(ETM) 24,090 22,516
Metro. Govt. of Nashville and
Davidson County TN Electric Rev. 5.20% 5/15/2023 20,000 19,024
Springfield TN Health & Educ. Fac. Board Hosp. Rev.
(Northcrest Medical Center) 4.90% 8/1/2008 4,010 3,661
Springfield TN Health & Educ. Fac. Board Hosp. Rev.
(Northcrest Medical Center) 5.25% 8/1/2013 5,450 4,560
-----------
$ 61,965
-----------
TEXAS (7.7%)
Austin TX Airport System Rev. 6.45% 11/15/2020 (1) 17,040 17,893
Austin TX Water, Sewer & Electric Rev. 14.00% 11/15/2001 70 73
Austin TX Water, Sewer & Electric Rev. 14.00% 11/15/2001 (ETM) 10 11
Brazos River Auth. TX Rev. (Reliant Energy Inc.) 5.375% 4/1/2019 11,500 10,122
Dallas-Fort Worth TX International Airport Fac.
Improvement Corp. PUT (American Airlines, Inc. Rev.) 5.95% 11/1/2003 21,300 21,416
Dallas-Fort Worth TX International Airport Fac.
Improvement Corp. PUT (American Airlines, Inc. Rev.) 6.05% 11/1/2005 6,250 6,304
Harris County TX Health Fac. Dev. Corp. Hosp. Rev. VRDO
(Methodist Hosp. of Houston) 4.60% 11/2/2000 16,000 16,000
Harris County TX Hosp. Dist. Rev. 6.00% 2/15/2014 (1) 13,985 14,691
Harris County TX Hosp. Dist. Rev. 7.40% 2/15/2010 (2) 17,500 19,866
Harris County TX Improvement GO 0.00% 10/1/2013 (1) 9,630 4,851
Harris County TX Toll Road VRDO 4.35% 11/8/2000 200 200
Hidalgo County TX Health Services Rev.
(Mission Hosp. Inc. Project) 6.875% 8/15/2026 7,880 7,576
Houston TX Water & Sewer System Rev. 0.00% 12/1/2004 (2) 12,590 10,369
Houston TX Water & Sewer System Rev. 0.00% 12/1/2011 (2) 24,810 14,045
Houston TX Water & Sewer System Rev. 0.00% 12/1/2012 (2) 26,000 13,835
Houston TX Water & Sewer System Rev. 6.375% 12/1/2001 (2)(Prere.) 285 297
Houston TX Water & Sewer System Rev. 6.375% 12/1/2017 (2) 4,245 4,404
Lower Colorado River Auth. TX PCR
(Samsung Austin Semiconductor LLC Project) 6.95% 4/1/2030 9,000 9,173
Lower Colorado River Auth. TX Rev. 6.00% 5/15/2013 (4) 9,700 10,368
Odessa TX Junior College Dist. Rev. 8.125% 6/1/2005 (Prere.) 10,000 11,512
San Antonio TX Electric & Gas Rev. 5.00% 2/1/2002 (Prere.) 150 152
San Antonio TX Electric & Gas Rev. 5.00% 2/1/2017 3,350 3,185
Texas Muni. Power Agency Rev. 0.00% 9/1/2006 6,205 4,676
Texas Muni. Power Agency Rev. 0.00% 9/1/2016 (1) 14,000 5,848
Texas Turnpike Auth. Dallas Northway Rev.
(President George Bush Turnpike) 0.00% 1/1/2011 (2) 7,000 4,154
Tomball TX Hosp. Auth. Rev. 6.00% 7/1/2025 7,400 6,292
Tomball TX Hosp. Auth. Rev. 6.00% 7/1/2029 10,000 8,373
Tyler TX Health Fac. Dev. Corp. (Mother Frances Hosp.) 5.30% 7/1/2007 2,250 2,135
Tyler TX Health Fac. Dev. Corp. (Mother Frances Hosp.) 5.40% 7/1/2008 2,500 2,354
</TABLE>
77
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tyler TX Health Fac. Dev. Corp. (Mother Frances Hosp.) 5.50% 7/1/2009 $ 2,000 $ 1,863
Tyler TX Health Fac. Dev. Corp. (Mother Frances Hosp.) 5.625% 7/1/2013 1,680 1,475
-----------
$ 233,513
-----------
UTAH (0.4%)
Intermountain Power Agency UT Power Supply Rev. 5.70% 7/1/2017 (1) 12,000 $ 12,200
-----------
VIRGIN ISLANDS (1.5%)
Virgin Islands Public Finance Auth. Rev. 5.20% 10/1/2009 3,065 3,007
Virgin Islands Public Finance Auth. Rev. 5.50% 10/1/2007 6,530 6,602
Virgin Islands Public Finance Auth. Rev. 5.75% 10/1/2013 11,000 10,707
Virgin Islands Public Finance Auth. Rev. 5.875% 10/1/2018 8,350 7,861
Virgin Islands Public Finance Auth. Rev. 6.00% 10/1/2008 4,915 4,995
Virgin Islands Public Finance Auth. Rev. 6.00% 10/1/2022 1,000 944
Virgin Islands Public Finance Auth. Rev. 6.375% 10/1/2019 10,000 10,260
-----------
$ 44,376
-----------
VIRGINIA (3.0%)
Alexandria VA Redev. & Housing Auth. Rev.
(Portals West Project) 5.00% 7/15/2020 ** 9,680 6,098
Charles City County VA IDA Solid Waste Disposal Rev.
(Waste Management Project) 4.875% 2/1/2009 7,750 6,819
Chesterfield County VA Mortgage Rev.
(Brandermill Woods Project) 6.50% 1/1/2028 15,803 13,929
Lynchburg VA IDA Healthcare Facs. Rev. (Centra Health) 5.20% 1/1/2018 4,400 4,060
Lynchburg VA IDA Healthcare Facs. Rev. (Centra Health) 5.20% 1/1/2023 1,000 899
Pocahontas Parkway Assoc. VA Route 895 Connector
Toll Road Rev. 5.00% 8/15/2010 (3) 6,100 5,528
Pocahontas Parkway Assoc. VA Route 895 Connector
Toll Road Rev. 5.00% 8/15/2011 3,900 3,479
Pocahontas Parkway Assoc. VA Route 895 Connector
Toll Road Rev. 5.25% 8/15/2007 4,600 4,409
Pocahontas Parkway Assoc. VA Route 895 Connector
Toll Road Rev. 5.25% 8/15/2009 6,000 5,610
Pocahontas Parkway Assoc. VA Route 895 Connector
Toll Road Rev. 5.50% 8/15/2028 36,725 30,401
Viginia Beach VA Dev. Auth. Residential Care Fac.
Mortgage Rev. (Westminster Canterbury) 7.25% 11/1/2032 9,000 9,052
-----------
$ 90,284
-----------
WASHINGTON (1.6%)
Chelan County WA Public Util. Dist.
(Rock Island Hydro Project) 0.00% 6/1/2010 (1) 19,550 12,066
Chelan County WA Public Util. Dist.
(Rock Island Hydro Project) 0.00% 6/1/2011 (1) 11,400 6,628
Chelan County WA Public Util. Dist.
(Rock Island Hydro Project) 0.00% 6/1/2012 (1) 19,650 10,745
Port Auth. of Seattle WA GO 5.75% 5/1/2014 15,600 15,879
Spokane WA Downtown Parking Rev.
(River Park Square Project) 5.60% 8/1/2019 6,000 4,377
-----------
$ 49,695
-----------
WEST VIRGINIA (0.3%)
West Virginia Building Comm. Rev. (Jail & Correction Fac.) 7.00% 7/1/2013 (1) 8,390 9,932
Wyoming (0.1%)
Lincoln County WY PCR VRDO (Exxon Project) 4.60% 11/2/2000 2,200 2,200
------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $3,055,493) $3,060,210
------------------------------------------------------------------------------------------------------------------------
</TABLE>
78
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------
MARKET
VALUE*
(000)
------------------------------------------------------------------------------------------------------------------------
<S> <C>
OTHER ASSETS AND LIABILITIES (-0.9%)
------------------------------------------------------------------------------------------------------------------------
Other Assets--Note B $ 57,300
Liabilities (84,789)
-----------
(27,489)
-----------
------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%)
------------------------------------------------------------------------------------------------------------------------
Applicable to 294,071,467 outstanding $.001 par value shares
of beneficial interest (unlimited authorization) $3,032,721
========================================================================================================================
NET ASSET VALUE PER SHARE $ 10.31
========================================================================================================================
</TABLE>
*See Note A in Notes to Financial Statements.
**Securities with an aggregate value of $5,850,000 have been segregated as
initial margin for open futures contracts.
For key to abbreviations and other references, see page 80.
-------------------------------------------------------------------------------
AT OCTOBER 31, 2000, NET ASSETS CONSISTED OF:
-------------------------------------------------------------------------------
AMOUNT PER
(000) SHARE
-------------------------------------------------------------------------------
Paid in Capital $3,063,339 $ 10.42
Undistributed Net Investment Income -- --
Accumulated Net Realized Losses--Note E (35,178) (.12)
Unrealized Appreciation (Depreciation)--Note F
Investment Securities 4,717 .01
Futures Contracts (157) --
-------------------------------------------------------------------------------
NET ASSETS $3,032,721 $ 10.31
===============================================================================
79
<PAGE>
KEY TO ABBREVIATIONS
BAN--Bond Anticipation Note.
COP--Certificate of Participation.
CP--Commercial Paper.
GO--General Obligation Bond.
IDA--Industrial Development Authority Bond.
IDR--Industrial Development Revenue Bond.
PCR--Pollution Control Revenue Bond.
PUT--Put Option Obligation.
RAN--Revenue Anticipation Note.
TAN--Tax Anticipation Note.
TOB--Tender Option Bond.
TRAN--Tax Revenue Anticipation Note.
VRDO--Variable Rate Demand Obligation.
(ETM)--Escrowed to Maturity.
(Prere.)--Prerefunded.
*Non-income-producing security--Interest Payments in Default.
**Only partial interest was paid on the last interest payment date.
+Security purchased on a when-issued or delayed delivery basis for which the
fund has not taken delivery as of October 31, 2000.
Scheduled principal and interest payments are guaranteed by:
(1) MBIA (Municipal Bond Insurance Association).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) FSA (Financial Security Assurance).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
The insurance does not guarantee the market value of the municipal bonds.
LOC--Scheduled principal and interest payments are guaranteed by bank letter of
credit.
(C)2000 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing
Corporation, Distributor.
F950 122000
80
<PAGE>
