<PAGE> 1
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON DECEMBER 4, 1995.
1933 ACT REGISTRATION NO. 2-47008
1940 ACT REGISTRATION NO. 811-2353
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933 / /
Pre-Effective Amendment No. / /
Post-Effective Amendment No. 41 /X/
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940 / /
Amendment No. 41 /X/
(Check appropriate box or boxes)
------------------
KEMPER NATIONAL TAX-FREE INCOME SERIES
(Formerly known as Kemper Municipal Bond Fund)
(Exact name of Registrant as Specified in Charter)
120 South LaSalle Street, Chicago, Illinois 60603
(Address of Principal Executive Office) (Zip Code)
Registrant's Telephone Number, including Area Code: (312) 781-1121
Philip J. Collora, With a copy to:
President and Secretary
Kemper National Tax-Free Income Series Charles F. Custer
120 South LaSalle Street Vedder, Price, Kaufman & Kammholz
Chicago, Illinois 60603 222 North LaSalle Street
(Name and Address of Agent for Service) Chicago, Illinois 60601
Registrant has registered an indefinite number of its shares under the
Securities Act of 1933 pursuant to Rule 24f-2 under the Investment Company Act
of 1940. The Rule 24f-2 Notice for Registrant's fiscal year ended September 30,
1995 was filed on or about October 26, 1995.
It is proposed that this filing will become effective (check appropriate
box)
/X/ immediately upon filing pursuant to paragraph (b)
/ / on (date) pursuant to paragraph (b)
/ / 60 days after filing pursuant to paragraph (a)(1)
/ / on (date) pursuant to paragraph (a)(1) of Rule 485
/ / 75 days after filing pursuant to paragraph (a)(2)
/ / on (date) pursuant to paragraph (a)(2) of Rule 485.
If appropriate check the following box:
/ / this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
EXPLANATORY NOTE:
Registrant is filing this Post-Effective Amendment No. 41 to
Registrant's Registration Statement solely to amend Part B of its Registration
Statement to add additional financial statements (Portfolio of Investments) and
to amend Part C to add additional exhibits. Part A and Part B of
Post-Effective Amendment No. 40 to Registrant's Registration Statement filed on
October 30, 1995 and effective November 10, 1995 are incorporated herein by
reference to such Post-Effective Amendment No. 40.
<PAGE> 2
KEMPER NATIONAL TAX-FREE INCOME SERIES
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN PART A
OF FORM N-1A AND PROSPECTUS
<TABLE>
<CAPTION>
ITEM NUMBER
OF FORM N-1A LOCATION IN PROSPECTUS
------------ ----------------------
<S> <C> <C>
1. Cover Page.............................. Cover Page
2. Synopsis................................ Summary; Summary of Expenses; Supplement to
Prospectus
3. Condensed Financial Information......... Financial Highlights; Performance; Supplement
to Prospectus
4. General Description of Registrant....... Summary; Investment Objectives, Policies and
Risk Factors
5. Management of the Fund.................. Summary; Investment Manager and Underwriter
5A. Management's Discussion of Financial
Performance............................. Performance
6. Capital Stock and Other Securities...... Summary; Dividends and Taxes; Purchase of
Shares; Capital Structure
7. Purchase of Securities Being Offered.... Summary; Investment Manager and Underwriter;
Net Asset Value; Purchase of Shares; Special
Features; Supplement to Prospectus
8. Redemption or Repurchase................ Summary; Redemption or Repurchase of Shares
9. Pending Legal Proceedings............... Inapplicable
</TABLE>
<PAGE> 3
KEMPER NATIONAL TAX-FREE INCOME SERIES
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN PART B
OF FORM N-1A AND STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
<CAPTION>
ITEM NUMBER LOCATION IN STATEMENT OF
OF FORM N-1A ADDITIONAL INFORMATION
------------ ------------------------
<S> <C> <C>
10. Cover Page............................... Cover Page
11. Table of Contents........................ Table of Contents
12. General Information and History.......... Inapplicable
13. Investment Objectives and Policies....... Investments; Investment Policies and
Techniques; Investment Restrictions;
Appendix--Ratings of Investments
14. Management of the Fund................... Investment Manager and Underwriter;
Officers and Trustees
15. Control Persons and Principal Holders of
Securities............................... Officers and Trustees
16. Investment Advisory and Other Services... Investment Manager and Underwriter;
Officers and Trustees
17. Brokerage Allocation and Other
Practices................................ Portfolio Transactions
18. Capital Stock and Other Securities....... Shareholder Rights
19. Purchase, Redemption and Pricing of
Securities Being Offered................. Purchase and Redemption of Shares
20. Tax Status............................... Dividends and Taxes
21. Underwriters............................. Investment Manager and Underwriter
22. Calculation of Performance Data.......... Performance
23. Financial Statements..................... Financial Statements; Report of Independent
</TABLE>
<PAGE> 4
Kemper National-Tax Free Income Series
Portfolio of Investments
<PAGE> 5
Portfolio of Investments
KEMPER MUNICIPAL BOND FUND
September 30, 1995
(Dollars in thousands)
<TABLE>
<CAPTION>
Issuer Principal amount Value
- -------------------------------------------------------------------------------------------------------------------------
ADVANCE REFUNDED OBLIGATIONS SECURED AS TO PRINCIPAL AND INTEREST BY
UNITED STATES GOVERNMENT SECURITIES
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
California - .3%
- ---------------------------------------------------------------------------------------------------------------------------
Riverside County, Riverside Juvenile Facilities Corp.,
Certificates of Participation, Rev., 8.00%, to be called
10-01-98 @ 102 $ 4,000 $ 4,497
---------------------------------------------------------------------------------------------------
San Bernardino County, County Center/Justice Center
and Capital Improvements, Rev., 7.60%, to be called
7-01-96 @ 102 6,955 7,287
---------------------------------------------------------------------------------------------------
11,784
Colorado - .3%
- ---------------------------------------------------------------------------------------------------------------------------
Colorado Springs, County Utility Rev., 6.75%,
to be called 11-15-01 @ 102 2,890 3,275
---------------------------------------------------------------------------------------------------
Health Facilities Auth., Vail Valley Medical Center,
Rev., 8.125%, to be called 6-01-99 @ 102 7,000 7,958
---------------------------------------------------------------------------------------------------
11,233
Connecticut - .5%
- ---------------------------------------------------------------------------------------------------------------------------
Health and Educational Facilities, Lawrence and Memorial
Hospital, Rev., 6.25%, to be called 7-01-02 @ 102 4,720 5,240
---------------------------------------------------------------------------------------------------
State, Gen. Oblg., 6.50%, to be called 3-15-02 @ 102 10,440 11,693
---------------------------------------------------------------------------------------------------
16,933
Florida - .0%
- ---------------------------------------------------------------------------------------------------------------------------
Jacksonville Health Facilities Auth., Baptist Medical Center,
Rev., 11.50%, to be called 11-13-95 through 10-01-06 @ 100 100 151
---------------------------------------------------------------------------------------------------
Georgia - .2%
- ---------------------------------------------------------------------------------------------------------------------------
Hospital Auth. of Fulton County, Northside Hospital,
Rev., 6.60%, to be called 10-01-02 @ 102 8,250 9,349
---------------------------------------------------------------------------------------------------
Illinois - .1%
- ---------------------------------------------------------------------------------------------------------------------------
Chicago, Tax Increment Allocation Bonds, Central Station, Rev.,
8.90%, to be called 1-01-05 @ 100 1,860 2,308
---------------------------------------------------------------------------------------------------
Indiana - .2%
- ---------------------------------------------------------------------------------------------------------------------------
Trustees of Purdue University, Purdue University Student Fees,
Rev., 6.75%, to be called 7-01-01 @ 102 6,300 7,102
---------------------------------------------------------------------------------------------------
Kentucky - .1%
- ---------------------------------------------------------------------------------------------------------------------------
Kenton County Airport Board, Greater Cincinnati International
Airport, Rev., 8.25%, to be called 3-1-98 @ 102 1,620 1,796
---------------------------------------------------------------------------------------------------
Maryland - .1%
- ---------------------------------------------------------------------------------------------------------------------------
Gaithersburg, First Mortgage Economic Dev., Asbury Methodist
Home Incorporated, Rev., 7.85%, to be called 1-01-00 @ 102 4,000 4,566
---------------------------------------------------------------------------------------------------
Massachusetts - .3%
- ---------------------------------------------------------------------------------------------------------------------------
Municipal Wholesale Electric Company, Power Supply System,
Rev., 6.75%, to be called 07-01-02 @ 102 9,150 10,415
---------------------------------------------------------------------------------------------------
Michigan - .0%
- ---------------------------------------------------------------------------------------------------------------------------
Building Auth., University of Michigan Adult General Hospital
Facility, Rev., 7.875%, to be called 12-01-96 @ 102 265 282
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 6
<TABLE>
<CAPTION>
Issuer Principal amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Missouri - .3%
- ---------------------------------------------------------------------------------------------------------------------------
Health and Educational Facilities,
Christian Health Services Dev. Corp.,
Rev., 6.875%, to be called 2-15-01 @ 102 $ 7,000 $ 7,885
---------------------------------------------------------------------------------------------------
St. Louis County, Regional Convention & Sports Complex Auth.,
Convention & Sports Facility, Rev., 7.00%,
to be called 8-15-03 @ 100 4,380 5,040
---------------------------------------------------------------------------------------------------
12,925
New Mexico - .2%
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Albuquerque Southwest Community Health Services,
Rev., 10.125%, to be called 8-1-08 @ 100 4,000 5,354
---------------------------------------------------------------------------------------------------
New York - .8%
- ---------------------------------------------------------------------------------------------------------------------------
Dormitory Auth., State University Educational Facilities,
Rev., 7.25%, to be called 5-15-02 @102 3,810 4,454
---------------------------------------------------------------------------------------------------
Local Government Assistance Corp., Rev., 7.375%
and 7.50%, to be called 4-01-01 @ 102 9,675 11,238
---------------------------------------------------------------------------------------------------
Power Auth., Electrical Rev., 8.00%, to be called 1-01-98 @ 102 10,000 10,993
---------------------------------------------------------------------------------------------------
26,685
Ohio - .5%
- ---------------------------------------------------------------------------------------------------------------------------
Clermont County Hospital Facilities, Mercy Health Systems,
Rev., 7.50%:
to be called 9-01-01 @ 100 2,280 2,628
to be called 9-01-99 @ 102 7,720 8,727
---------------------------------------------------------------------------------------------------
Franklin County, Mount Carmel Health Hospital, Rev., 7.25%,
to be called 6-01-00 @ 102 5,495 6,227
---------------------------------------------------------------------------------------------------
17,582
Pennsylvania - 1.2%
- ---------------------------------------------------------------------------------------------------------------------------
Industrial Dev. Auth., Economic Dev., Rev., 7.00%, to be called
7-1-01 @ 102 5,000 5,675
---------------------------------------------------------------------------------------------------
Intergovernmental Cooperation Auth., City of
Philadelphia Funding Program, Rev., 6.80%,
to be called 6-15-02 @ 100 12,000 13,501
---------------------------------------------------------------------------------------------------
Philadelphia:
Gas Works Rev., 7.70%, to be called 6-15-01 @ 102 14,850 17,413
Municipal Auth., Criminal Justice Center, Rev., 7.80%,
to be called 4-01-98 through 4-01-00 @ 100 4000 4,545
---------------------------------------------------------------------------------------------------
41,134
South Carolina - .1%
- ---------------------------------------------------------------------------------------------------------------------------
Lancaster County Water and Sewer District, Waterworks and
Sewer System Improvement, Rev. 6.75%,
to be called 5-1-01 @ 102 3,000 3,374
---------------------------------------------------------------------------------------------------
Texas - .0%
- ---------------------------------------------------------------------------------------------------------------------------
Austin, Water, Sewer and Electric Rev., 14.00%, non-callable 65 85
---------------------------------------------------------------------------------------------------
Total Advance Refunded Obligations 5.2% 183,058
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
Issuer Principal amount Value
- ---------------------------------------------------------------------------------------------------------------------------
OTHER MUNICIPAL OBLIGATIONS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alabama - 2.1%
- ---------------------------------------------------------------------------------------------------------------------------
Birmingham-Jefferson Civic Center Auth., Capital Outlay,
Special Tax Rev., 7.40%, 2008 $12,000 $13,234
---------------------------------------------------------------------------------------------------
City of Mobile, Mobile Energy Services,
Industrial Dev. Board, Rev., 6.95%, 2020 22,000 22,708
---------------------------------------------------------------------------------------------------
Courtland, Champion International,
Industrial Dev. Board, Rev., 6.50%, 2025 20,000 19,894
---------------------------------------------------------------------------------------------------
Hoover, Gen. Oblg., 4.50% and 5.00%, 2013 and 2020 12,845 10,999
Universities:
---------------------------------------------------------------------------------------------------
Alabama at Birmingham, Hospital Rev., 5.00%, 2014 4,200 3,776
---------------------------------------------------------------------------------------------------
South Alabama, Hospital and Auxiliary Rev., 4.75%, 2010 4,000 3,578
---------------------------------------------------------------------------------------------------
74,189
Alaska - .2%
- ---------------------------------------------------------------------------------------------------------------------------
Energy Auth., Bradley Lake Hydroelectric Power,
Rev., 7.25%, 2016 4,675 3,154
---------------------------------------------------------------------------------------------------
North Slope Borough, Gen. Oblg., 13.00%, 1998 635 759
---------------------------------------------------------------------------------------------------
5,913
Arizona - 1.0%
- ---------------------------------------------------------------------------------------------------------------------------
City of Phoenix:
Gen. Oblg., 6.375%, 2013 7,400 7,678
User Streets and Highway User, Junior Lien, Rev., 6.25%, 2011 10,000 10,579
---------------------------------------------------------------------------------------------------
Coconino County, Industrial Dev. Auth., Health Care Institution,
The Guidance Center, Inc. Proj., Rev., 9.25%, 2011 930 996
---------------------------------------------------------------------------------------------------
Health Facilities Auth. Hospital System, Phoenix Baptist Hospital
and Medical Center, Inc. and Medical Environments, Inc.,
Rev., 6.25%, 2011 1,400 1,464
---------------------------------------------------------------------------------------------------
Maricopa County, Gen. Oblg., 4.80%, 2013 5,475 4,861
---------------------------------------------------------------------------------------------------
Salt River Proj., Agricultural Improvement and Power District,
Rev., 5.00%, 2016 11,900 10,708
---------------------------------------------------------------------------------------------------
36,286
Arkansas - 1.0%
- ---------------------------------------------------------------------------------------------------------------------------
North Little Rock, Electric System, Rev., 6.50%, 2010 and 2015 31,830 35,512
---------------------------------------------------------------------------------------------------
California - 4.7%
- ---------------------------------------------------------------------------------------------------------------------------
Central Valley Financing Auth., Cogeneration Proj., Carson Ice,
Rev., 6.00%, 2009 6,000 6,039
---------------------------------------------------------------------------------------------------
City of Loma Linda, Loma Linda University Medical Center Proj.,
Rev., 9.00%, 2012 2,500 2,576
---------------------------------------------------------------------------------------------------
City of Los Angeles:
Convention & Exhibit Center Auth., Lease Rev., 5.125%, 2013 9,040 8,338
Department of Water & Power, Electric Plant, Rev., 4.75%, 2009
through 2019 26,500 23,292
---------------------------------------------------------------------------------------------------
City of Santa Clara, Sports and Open Space Auth., Certificates of
Participation, 4.75%, 2014 5,000 4,361
---------------------------------------------------------------------------------------------------
Duarte, City of Hope National Medical Center, Certificates of
Participation, 6.00% and 6.25%, 2008 and 2023 23,255 22,442
---------------------------------------------------------------------------------------------------
Health Facilities Finance Auth., Catholic Health Facility,
Rev., 5.00%, 2021 11,120 9,696
---------------------------------------------------------------------------------------------------
Imperial Irrigation District, Certificates of Participation,
Electric System Proj., 6.75%, 2011 3,500 3,857
---------------------------------------------------------------------------------------------------
Los Angeles County:
Metropolitan Transportation Auth., Sales Tax Rev., 4.75% and
5.30%, 2018 and 2012 11,885 10,967
Public Works Financing Auth., Multi-Purpose Lease Rev.,
4.75%, 2013 21,000 18,201
Sanitation District Financing Auth., Rev., 5.00%, 2023 4,500 3,882
---------------------------------------------------------------------------------------------------
Rancho California, Water District Financing Auth., Rev.,
4.75%, 2021 17,500 14,683
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
Issuer Principal amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Regents of University of California, Multiple Purpose Proj.,
Rev., 4.75% to 5.125%, 2013 through 2023 $36,010 $ 31,813
---------------------------------------------------------------------------------------------------
Southern California Public Power Auth., Rev., 4.875%, 2020 3,000 2,574
---------------------------------------------------------------------------------------------------
162,721
Colorado - 7.5%
- ---------------------------------------------------------------------------------------------------------------------------
Adams County, Gen. Oblg., 6.125% and 6.20%, 2007 and 2008 6,910 7,331
---------------------------------------------------------------------------------------------------
Arapahoe County, Public Highway Auth., Rev., 6.95% and 7.00%,
2020 and 2026 80,700 83,443
---------------------------------------------------------------------------------------------------
City and County of Denver:
Airport System Rev., 5.70% to 8.75%, 2002 through 2025 89,430 94,830
Gen. Oblg., 5.125% and 6.50%, 2012 and 2010 12,225 12,465
---------------------------------------------------------------------------------------------------
City of Colorado Springs, Utilities System Improvement,
Rev., 5.125%, 2023 8,795 7,931
---------------------------------------------------------------------------------------------------
Douglas County School District #1, Douglas and Elbert Counties,
Gen. Oblg., 6.50%, 2016 16,665 17,898
---------------------------------------------------------------------------------------------------
Health Facilities Auth.:
Covenant Retirement Communities, Inc., Rev., 6.75%,
2015 and 2025 5,900 5,936
Kaiser Permanente Medical Care Program, Rev., 9.125%, 2015 8,575 8,782
Swedish Medical Center, Rev., 6.80% and 7.50%, 2023 and 2020 5,500 6,173
---------------------------------------------------------------------------------------------------
Housing Finance Auth., Single Family Mortgage Rev., 7.65%, 2022 825 865
---------------------------------------------------------------------------------------------------
Metropolitan Denver Sewerage Disposal, District No. 1,
Rev., 6.75%, 2012 5,540 5,697
---------------------------------------------------------------------------------------------------
Metropolitan Wastewater Reclamation District, Gen. Oblg.,
6.00%, 2010 11,505 11,791
---------------------------------------------------------------------------------------------------
263,142
Connecticut - .6%
- ---------------------------------------------------------------------------------------------------------------------------
Dev. Auth., Pierce Memorial Baptist Home, Rev., 9.25%, 2018 1,140 1,286
---------------------------------------------------------------------------------------------------
Resource Recovery Auth., Mid-Connecticut Systems,
Rev., 7.30%, 2012 4,790 5,097
---------------------------------------------------------------------------------------------------
Transportation Infrastructure Purposes, Special Tax Obligation,
Rev., 4.875% to 6.10%, 2008 through 2015 15,535 15,218
---------------------------------------------------------------------------------------------------
21,601
Delaware - .3%
- ---------------------------------------------------------------------------------------------------------------------------
Economic Dev. Auth., United Water Proj., Rev., 6.20%, 2025 12,000 12,073
---------------------------------------------------------------------------------------------------
District of Columbia - 1.6%
- ---------------------------------------------------------------------------------------------------------------------------
Georgetown University, Rev., 8.25%, 2018 11,410 12,712
---------------------------------------------------------------------------------------------------
Metropolitan Area Transit Auth., Gross Transit Rev., 5.25%, 2014 9,000 8,536
---------------------------------------------------------------------------------------------------
Metropolitan Washington Airports Auth., Airport System
Rev., 5.50% to 7.60%, 2014 through 2024 26,000 25,257
---------------------------------------------------------------------------------------------------
District, Gen. Oblg., 6.00% and 6.30%, 2013 and 2010 8,500 8,622
---------------------------------------------------------------------------------------------------
55,127
Florida - 6.0%
- ---------------------------------------------------------------------------------------------------------------------------
Board of Education, Gen. Oblg., 5.125% to 5.50%,
2016 through 2023 61,235 56,916
---------------------------------------------------------------------------------------------------
Broward County:
Airport System Rev., 7.625%, 2013 2,620 2,895
Waste Energy Company, Rev., 7.95%, 2008 13,745 15,395
---------------------------------------------------------------------------------------------------
Clay County, Single Family Housing, Rev., 6.55%, 2028 2,750 2,805
---------------------------------------------------------------------------------------------------
Dade County:
Gen. Oblg., 5.125%, 2014 3,915 3,628
Housing Financing Auth., Rev., 6.55%, 2027 3,550 3,628
---------------------------------------------------------------------------------------------------
Department of Transportation, Turnpike Rev., 5.00%, 2019 5,000 4,493
Greater Orlando Aviation Auth., Rev., 8.375%, 2016 3,065 3,443
---------------------------------------------------------------------------------------------------
Hillsborough County Industrial Dev. Auth., Tampa Electric,
Rev., 8.00%, 2022 10,000 11,939
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
Issuer Principal amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Jacksonville Health Facilities Auth., Baptist Medical Center,
Rev., 11.50%, 2012 $ 85 $ 142
---------------------------------------------------------------------------------------------------
Manatee County, Public Utilities, Rev., 4.75% and 5.00%, 2013 24,625 22,393
---------------------------------------------------------------------------------------------------
Miami Beach Redev. Agcy., Tax Increment Rev., 5.875%, 2022 1,000 929
---------------------------------------------------------------------------------------------------
Municipal Power Agcy., All-Requirements Power Supply Proj.,
Rev., 5.10%, 2014 7,565 7,034
---------------------------------------------------------------------------------------------------
Orange County:
Health Facilities Auth., Rev., 5.50%, 2015 6,950 6,696
Sales Tax Rev., 5.375%, 2024 6,000 5,600
---------------------------------------------------------------------------------------------------
Orlando Utitlity, Community Water & Electric, Rev., 5.00%
and 5.25%, 2020 and 2023 13,500 12,162
---------------------------------------------------------------------------------------------------
Palm Beach County, Solid Waste Auth., Rev., 8.75%, 2010 13,755 15,086
---------------------------------------------------------------------------------------------------
Pasco County, Solid Waste Disposal and Resource Recovery,
Rev., 7.80%, 2011 13,730 15,182
---------------------------------------------------------------------------------------------------
Port Orange, Water and Sewer, Rev., 5.25%, 2021 5,000 4,639
---------------------------------------------------------------------------------------------------
Reedy Creek Improvement District, Utility Improvement,
Rev., 5.00%, 2014 8,330 7,649
---------------------------------------------------------------------------------------------------
St. Lucie County, Sales Tax Rev., 5.00%, 2019 4,495 4,037
---------------------------------------------------------------------------------------------------
Village Center Community Dev. District, Lake County,
Utility Rev., 5.00%, 2013 4,605 4,224
---------------------------------------------------------------------------------------------------
210,915
Georgia - 3.0%
- ---------------------------------------------------------------------------------------------------------------------------
Chatham County School District, Gen. Oblg., 6.15%, 2010 7,300 7,603
---------------------------------------------------------------------------------------------------
City of Atlanta, Water and Sewerage, Rev., 4.50% and 4.75%,
2018 and 2023 28,915 24,356
---------------------------------------------------------------------------------------------------
Fulton-DeKalb Hospital Auth., Rev., 6.55%, 2018 1,500 1,520
---------------------------------------------------------------------------------------------------
Fulton-DeKalb Housing Auth., Rev., 6.60%, 2028 23,100 23,432
---------------------------------------------------------------------------------------------------
Metropolitan Atlanta Rapid Transit Auth., Sales Tax Rev.,
5.125% and 6.70%, 2017 and 2012 11,520 11,387
---------------------------------------------------------------------------------------------------
Municipal Electric Auth.:
Power Rev., 4.75% to 8.125%, 2012 through 2019 33,955 33,197
Special Obligation, 6.60%, 2018 3,500 3,842
---------------------------------------------------------------------------------------------------
105,337
Illinois - 6.1%
- ---------------------------------------------------------------------------------------------------------------------------
Chicago:
Board of Education, Gen. Oblg., 6.00%
and 6.25%, 2008 through 2020 24,060 25,632
Gas Supply, Peoples Gas, Light and Coke Company,
Rev., 8.10%, 2020 8,250 9,364
O'Hare International Airport, General Rev., 5.00%
to 6.375%, 2012 through 2018 34,000 33,068
Skyway Toll Bridge Rev., 6.75%, 2014 and 2017 24,825 25,019
Wastewater Transmission, Rev., 5.375%, 2013 4,270 4,082
---------------------------------------------------------------------------------------------------
City of East St. Louis, Illinois Dev. Finance Auth.,
Debt Restructuring Rev., 7.50%, 2013 3,750 3,925
---------------------------------------------------------------------------------------------------
County of Cook, Gen. Oblg., 5.375% to 9.50%,
1996 through 2022 46,315 46,994
---------------------------------------------------------------------------------------------------
Dev. Finance Auth., Pollution Control, Commonwealth
Edison Company Proj., Rev., 6.75%, 2015 16,780 18,039
---------------------------------------------------------------------------------------------------
Freeport, Single Family Mortgage Rev., 7.40%, 2010 1,585 1,593
---------------------------------------------------------------------------------------------------
Harvard, Multifamily Housing, Northfield Court,
Rev., 8.80%, 2008 3,880 4,147
---------------------------------------------------------------------------------------------------
Health Facilities Auth.:
Northwestern Medical Faculty Foundation, Inc., Healthcare
Facilities Rev., 6.50%, 2015 3,900 4,085
Rush-Presbyterian-St. Luke's Medical Center Obligated
Group, Rev., 5.25%, 2020 6,000 5,391
South Suburban Hospital, Rev., 7.00%, 2009 7,750 8,196
---------------------------------------------------------------------------------------------------
Madison County, Gen. Oblg., 5.85%, 2013 3,500 3,534
---------------------------------------------------------------------------------------------------
Sports Facilities Auth., Rev., 7.875%, 2010 2,990 3,351
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 10
<TABLE>
<CAPTION>
Issuer Principal amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
St. Charles, Wessel Court Proj., Multifamily Housing
Rev., 7.60%, 2024 $ 3,930 $3,999
---------------------------------------------------------------------------------------------------
State, Gen. Oblg., 5.875%, 2015 12,000 11,758
University Park, Governors Gateway Industrial Park,
Tax Increment Rev., 8.50%, 2011 3,000 3,173
---------------------------------------------------------------------------------------------------
215,350
Indiana - 5.0%
- ---------------------------------------------------------------------------------------------------------------------------
Hospital Auth. of Marion County, University Heights Hospital,
Rev., 8.625%, 2012 7,195 8,340
---------------------------------------------------------------------------------------------------
Health Facility Financing Auth., Fayette Memorial Hospital,
Hospital Rev., 7.20%, 2022 1,800 1,804
---------------------------------------------------------------------------------------------------
Indianapolis Airport Auth.:
Federal Express Corp. Proj., Rev., 7.10%, 2017 40,500 42,874
Local Public Improvement Bond, Transportation Rev., 6.60% to
6.75%, 2007 through 2014 14,000 15,358
United Airlines, Inc., Maintenance Center Proj.,
Rev., 6.50%, 2031 80,830 79,386
---------------------------------------------------------------------------------------------------
Toll Road Financing Auth., Rev., 6.875%, 2012 4,000 4,177
---------------------------------------------------------------------------------------------------
Transportation Financing Auth., Highway Rev., 5.75% and 7.25%,
2012 and 2015 7,000 7,705
---------------------------------------------------------------------------------------------------
Trustees of Purdue University, Purdue University Student Fees,
Rev., 6.70% and 6.75%, 2015 and 2009 14,500 15,649
---------------------------------------------------------------------------------------------------
175,293
Iowa - .4%
- ---------------------------------------------------------------------------------------------------------------------------
Finance Auth.:
GNMA Mortgage-Backed Securities Program, Single Family
Mortgage Rev., 7.90%, 2022 2,685 2,857
Trinity Regional Hospital Proj., Rev., 7.00%, 2022 12,000 12,084
---------------------------------------------------------------------------------------------------
14,941
Kentucky - 1.9%
- ---------------------------------------------------------------------------------------------------------------------------
Dev. Finance Auth., Baptist Hospital Inc., Rev.,
7.625%, 2011 2,000 2,218
---------------------------------------------------------------------------------------------------
Economic Dev. Finance Auth., Baptist Healthcare System Issue,
Hospital Rev., 5.00%, 2015 12,810 11,595
---------------------------------------------------------------------------------------------------
Hopkins County, The Trover Clinic Foundation,
Rev., 6.625%, 2011 4,000 4,310
---------------------------------------------------------------------------------------------------
Kenton County Airport Board, Greater Cincinnati
International Airport:
Airport, Rev., 8.25%, 2015 7,380 8,186
Delta Airlines, Rev., 6.125% and 7.125%,
2021 through 2022 36,395 34,697
---------------------------------------------------------------------------------------------------
Trimble County, Louisville Gas & Electric Company,
Rev., 7.75%, 2019 1,840 2,009
---------------------------------------------------------------------------------------------------
Turnpike Auth., Toll Road, Rev., 8.50%, 2004 2,025 2,129
---------------------------------------------------------------------------------------------------
65,144
Louisiana - .5%
- ---------------------------------------------------------------------------------------------------------------------------
Beauregard Parish, Boise Cascade Corp. Proj., Rev., 6.125%
and 6.30%, 2023 7,650 7,365
---------------------------------------------------------------------------------------------------
Parish School Board of the Parish of Jefferson, Sales Tax,
Rev., 6.25%, 2008 11,000 11,613
---------------------------------------------------------------------------------------------------
18,978
Maine - .1%
- ---------------------------------------------------------------------------------------------------------------------------
Health and Higher Education Facilities Auth., Rev., 7.10%, 2014 2,750 3,046
---------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 11
Portfolio of Investments
<TABLE>
<CAPTION>
Issuer Principal amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Maryland - 2.3%
- ---------------------------------------------------------------------------------------------------------------------------
City of Gaithersburg, First Mortgage Economic Dev., Asbury
Methodist Home Incorporated, Rev., 5.50%,
2015 and 2020 $15,500 $ 13,833
---------------------------------------------------------------------------------------------------
Community Dev. Administration, Department of Housing
and Community Dev., Rev., 7.85%, 2029 5,805 6,161
---------------------------------------------------------------------------------------------------
Energy Financing Administration, AES Warrior Run Proj.,
Rev., 7.40%, 2019 24,100 24,731
---------------------------------------------------------------------------------------------------
Health & Higher Educational Facilities Auth.:
Doctors' Community Hospital Proj., Rev., 5.50% and 5.75%,
2024 and 2013 12,785 11,076
Frederick Memorial Hospital Proj., Rev., 5.00%, 2018 4,000 3,557
---------------------------------------------------------------------------------------------------
Northeast Maryland Waste Disposal Auth., Southwest Resource
Recovery Facility, Rev., 7.20%, 2006 1,500 1,721
---------------------------------------------------------------------------------------------------
Stadium Auth., Sports Facilities Lease Rev., 7.60%, 2019 17,200 18,977
- ---------------------------------------------------------------------------------------------------------------------------
80,056
Massachusetts - 5.8%
- ---------------------------------------------------------------------------------------------------------------------------
Bay Transit Auth., General Transportation System, Rev.,
5.50% to 6.20%, 2012 through 2018 59,750 59,745
- ---------------------------------------------------------------------------------------------------------------------------
Municipal Wholesale Electric Company, Power Supply System,
Rev., 5.00% to 6.75%, 2011 through 2018 41,945 42,607
---------------------------------------------------------------------------------------------------
Port Auth., Rev., 5.00% and 13.00%, 2015 and 2013 8,190 8,689
---------------------------------------------------------------------------------------------------
South Essex Sewerage District, Gen. Oblg., 6.75%, 2013
and 2015 2,000 2,169
---------------------------------------------------------------------------------------------------
State, Gen. Oblg., 6.50%, 2011 17,300 18,473
---------------------------------------------------------------------------------------------------
Turnpike Auth., Rev., 5.00%, 2013 12,400 11,288
---------------------------------------------------------------------------------------------------
Water Pollution Abatement Trust, MWRA Loan Program,
Rev., 5.45%, 2013 5,000 4,826
---------------------------------------------------------------------------------------------------
Water Restoration Auth., Rev., 4.75% to 5.50%,
2013 through 2023 61,590 55,673
- ---------------------------------------------------------------------------------------------------------------------------
203,470
Michigan - 4.2%
- ---------------------------------------------------------------------------------------------------------------------------
Building Auth., Rev., 6.75%, 2011 9,750 10,522
---------------------------------------------------------------------------------------------------
City of Battle Creek and Calhoun County, Downtown Dev.
Auth., Tax Increment, Rev., 7.60%, 2016 3,800 4,128
---------------------------------------------------------------------------------------------------
City of Kalamazoo Hospital Finance Auth., Borgess Medical
Center, Rev., 5.00%, 2013 14,650 13,125
---------------------------------------------------------------------------------------------------
Detroit:
Convention Facility, Cobo Hall Expansion Proj.,
Rev., 5.25%, 2012 22,250 20,178
Gen. Oblg., 5.00% to 6.80%, 2010 through 2015 20,110 19,451
---------------------------------------------------------------------------------------------------
Hospital Finance Auth.:
Henry Ford Health System, Rev., 7.00%, 2010 11,000 11,784
McLaren Oblg. Group, Rev., 4.50%, 2021 28,215 22,207
Oakwood Hospital Obligated Group, Rev., 5.50%, 2013 8,000 7,630
Sisters of Mercy Health Corp., Rev., 7.50%, 2007 and 2013 9,000 9,780
---------------------------------------------------------------------------------------------------
Housing Dev. Auth., Rev., 5.70%, 2012 3,465 3,401
---------------------------------------------------------------------------------------------------
Jackson County Hospital Finance Auth., W.A. Foote Memorial
Hospital, Rev., 4.75%, 2015 4,260 3,689
---------------------------------------------------------------------------------------------------
Municipal Bond Auth., Local Government Loan Program,
Rev., 4.75%, 2009 7,225 6,669
---------------------------------------------------------------------------------------------------
Public Power Agcy., Rev., 5.00%, 2019 10,500 9,300
---------------------------------------------------------------------------------------------------
Charter County of Wayne, Airport, Rev., 5.25%, 2021 5,000 4,520
---------------------------------------------------------------------------------------------------
146,384
Minnesota - 1.1%
- ---------------------------------------------------------------------------------------------------------------------------
City of Minneapolis, Housing Redev. Auth.,
Health Care System, Rev., 4.75%, 2018 17,500 15,026
---------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 12
Portfolio of Investments
<TABLE>
<CAPTION>
Issuer Principal amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
City of St. Louis Park, Methodist Hospital Proj.,
Rev., 7.25%, 2015 $6,650 $ 7,523
---------------------------------------------------------------------------------------------------
Housing Finance Agcy., Multifamily Mortgage Bonds,
Rev., 9.375%, 2018 550 577
---------------------------------------------------------------------------------------------------
Housing Finance Auth., Single Family Mortgage Bonds,
Rev., 7.90%, 2019 6,370 6,786
---------------------------------------------------------------------------------------------------
South Minnesota Municipal Power, Rev., 4.75%, 2016 10,000 8,640
---------------------------------------------------------------------------------------------------
38,552
Mississippi - .2%
- ---------------------------------------------------------------------------------------------------------------------------
Gulfport Hospital Facilities Auth., Gulfport Memorial
Hospital, Improvement, Rev., 6.125%, 2015 6,750 6,864
---------------------------------------------------------------------------------------------------
Missouri - 1.3%
- ---------------------------------------------------------------------------------------------------------------------------
Clarence Cannon Wholesale Water Commission, Water
Rev., 6.00%, 2020 10,000 9,366
---------------------------------------------------------------------------------------------------
Health and Education Facilities Auth., St. Louis University,
Rev., 4.75%, 2016 4,500 3,940
---------------------------------------------------------------------------------------------------
Kansas City Schools, Missouri School District Building Corp.,
Leasehold Rev., 5.00%, 2014 6,000 5,526
---------------------------------------------------------------------------------------------------
Regional Convention and Sports Complex Auth., Convention
and Sports Facility Proj., St. Louis County,
Rev., 5.50% and 7.90%, 2016 and 2021 10,000 10,160
---------------------------------------------------------------------------------------------------
Sikeston, Electric System, Rev., 6.20%, 2010 6,870 7,436
---------------------------------------------------------------------------------------------------
St. Louis, Scullin Redev. Proj., Tax Increment
Rev., 10.00%, 2010 8,990 10,448
---------------------------------------------------------------------------------------------------
46,876
Nebraska - .4%
- ---------------------------------------------------------------------------------------------------------------------------
Omaha Public Power District Electric System, Rev., 5.50%, 2014 8,150 7,867
---------------------------------------------------------------------------------------------------
Scotts Bluff County, Hospital Auth., West Medical Proj. Center,
Rev., 6.45%, 2004 4,535 4,963
---------------------------------------------------------------------------------------------------
12,830
Nevada - 1.1%
- ---------------------------------------------------------------------------------------------------------------------------
City of Reno, Redev. Agcy., Tax Allocation Rev., 5.65% and
5.75%, 2013 and 2017 7,165 6,611
---------------------------------------------------------------------------------------------------
Clarke County, Las Vegas-MaCarran International Airport,
Rev., 5.50%, 2025 16,310 15,035
---------------------------------------------------------------------------------------------------
Henderson, Healthcare Facilities, Rev., 5.00%, 2020 6,915 6,069
---------------------------------------------------------------------------------------------------
Humboldt County, Pollution Control, Idaho Power Company,
Rev., 8.30%, 2014 9,650 11,320
- ---------------------------------------------------------------------------------------------------------------------------
39,035
New Jersey - 2.7%
- ---------------------------------------------------------------------------------------------------------------------------
Camden County Municipal Utilities Auth., Rev., 8.25%, 2017 15,600 17,148
---------------------------------------------------------------------------------------------------
Essex County:
Improvement Auth., County Jail and Youth Housing Proj.,
Lease Rev., 6.90%, 2014 2,645 2,971
Property and Equipment Improvement Leasing Program,
Rev., 6.50%, 2012 4,050 4,356
---------------------------------------------------------------------------------------------------
Health Care Facilities Financing Auth.:
Atlantic City Medical Center, Rev., 6.80%, 2011 3,840 4,036
Southern Ocean County Hospital, Rev., 6.125% and 6.25%,
2013 and 2023 7,235 7,011
West Jersey Health System, Rev., 6.125%, 2012 11,000 11,341
---------------------------------------------------------------------------------------------------
Jersey City Sewer Auth., Rev., 4.50%, 2019 13,500 11,258
---------------------------------------------------------------------------------------------------
Transportation Auth., Rev., 5.50%, 2013 10,000 9,745
---------------------------------------------------------------------------------------------------
Turnpike Auth., Rev., 6.50% and 10.375%, 2016 and 2003 23,900 26,868
- ---------------------------------------------------------------------------------------------------------------------------
94,734
</TABLE>
19
<PAGE> 13
Portfolio of Investments
<TABLE>
<CAPTION>
Issuer Principal amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New Mexico - .3%
- ---------------------------------------------------------------------------------------------------------------------------
Albuquerque:
Health Care, Ltd. Proj., Rev., 9.75%, 2014 $ 1,430 $ 1,585
Southwest Community Health Services, Rev., 10.00%, 2003 990 1,311
---------------------------------------------------------------------------------------------------
Los Alamos County, Utility System, Rev., 6.10%, 2010 4,400 4,557
---------------------------------------------------------------------------------------------------
Socorro Hospital System, Southwest Community Health
Services, Rev., 10.00%, 2003 1,500 2,002
---------------------------------------------------------------------------------------------------
Truth or Consequences, Nursing Home Improvement,
Sierra Health Care, Inc., Rev., 9.75%, 2014 955 1,058
---------------------------------------------------------------------------------------------------
10,513
New York - 4.9%
- ---------------------------------------------------------------------------------------------------------------------------
Environmental Facilities Corp., State
Water Pollution Control, Revolving Fund Rev.,
6.875% to 7.25%, 2010 through 2014 18,875 20,961
---------------------------------------------------------------------------------------------------
Medical Care Facilities Finance Agcy.:
Hospital, Mortgage Rev., 6.75%, 2014 8,000 8,734
Hospital and Nursing Home, Rev., 6.45%, 2009 9,185 9,953
Mental Health Services Facilities Improvement, Rev.,
5.25% to 7.75%, 2010 through 2019 37,525 35,497
---------------------------------------------------------------------------------------------------
Metropolitan Transit Auth., Transit Facilities, Rev., 6.25%,
2014 6,000 6,189
---------------------------------------------------------------------------------------------------
New York City:
Gen. Oblg., 7.00% to 8.40%, 2000 through 2015 44,915 51,572
Industrial Dev. Auth., USTA National Tennis Center
Inc. Proj., Civil Facility Rev., 6.50% and 6.60%,
2010 and 2011 6,485 6,989
Municipal Water Finance Auth., Rev., 7.00%, 2015 1,500 1,663
---------------------------------------------------------------------------------------------------
Port Auth. of New York and New Jersey:
LaGuardia Airport Passenger Terminal, Special Obligation,
Rev., 9.125%, 2015 3,225 3,639
Rev., 5.20% and 6.50%, 2012 and 2008 7,390 7,663
---------------------------------------------------------------------------------------------------
Triborough Bridge and Tunnel Auth., Rev., 8.125%, 2012 14,000 15,517
---------------------------------------------------------------------------------------------------
Urban Dev. Corp., Correctional Facilities, Rev., 5.375%, 2012 3,500 3,359
- ---------------------------------------------------------------------------------------------------------------------------
171,736
North Carolina - 1.0%
- ---------------------------------------------------------------------------------------------------------------------------
Durham County, 1991 Jail Facilities and Computer Equipment
Financing Proj., Rev., 6.625%, 2014 5,500 5,806
---------------------------------------------------------------------------------------------------
Municipal Power Agcy. Number 1, Catawba Electric, Rev., 5.00%,
2015 and 2018 26,350 23,367
---------------------------------------------------------------------------------------------------
Raleigh-Durham Airport Auth., American Airlines, Inc.,
Rev., 9.625%, 2015 5,000 5,125
---------------------------------------------------------------------------------------------------
34,298
North Dakota - .0%
- ---------------------------------------------------------------------------------------------------------------------------
Housing Finance Agcy., Single Family Mortgage Program,
Rev., 8.05%, 2024 1,200 1,253
---------------------------------------------------------------------------------------------------
Ohio - 2.9%
- ---------------------------------------------------------------------------------------------------------------------------
Building Auth.:
State Correctional Facilities, Rev., 5.00%, 2012 7,000 6,359
Workers Compensation Facility, William Green Building,
Rev., 4.75%, 2014 13,230 11,463
---------------------------------------------------------------------------------------------------
City of Springdale, Hospital Facilities First Mortgage,
Southwestern Ohio Seniors Services, Rev., 6.00%, 2018 1,250 1,120
---------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE> 14
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
ISSUER Principal Amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cleveland:
Public Power System Improvement, First Mortgage
Rev., 7.00%, 2017 $ 850 $ 887
Water Works System, Rev., 5.50% and 6.50%, 2013 and 2011 7,380 7,660
---------------------------------------------------------------------------------------------------
Cuyahoga County, Merida Health System, Hospital
Rev., 6.25%, 2014 and 2024 9,470 9,629
---------------------------------------------------------------------------------------------------
Higher Education Facility Commission, Rev., 6.70%, 2003 6,725 7,356
---------------------------------------------------------------------------------------------------
Marion County Health Care Facilities and Improvement, United
Church Homes Proj., Rev., 6.30% and 6.375%, 2015 and 2010 5,350 5,246
---------------------------------------------------------------------------------------------------
Montgomery County, Miami Valley Hospital, Rev., 9.375%, 2005 3,000 3,089
---------------------------------------------------------------------------------------------------
Municipal Electric Generation Agcy., Rev., 5.375%, 2013 5,700 5,437
---------------------------------------------------------------------------------------------------
Muskingum County, Franciscan Health Advisory Services, Inc.,
Rev., 7.50%, 2012 7,470 7,755
---------------------------------------------------------------------------------------------------
Scioto County USHCSO-Portsmouth Proj., Hospital Facilities,
Rev., 7.625%, 2015 2,000 2,201
---------------------------------------------------------------------------------------------------
Village of Green Springs, St. Francis Health Care Centre Proj.,
Health Care Facilities Rev., 7.00% and 7.125%, 2014 and 2025 8,640 8,717
---------------------------------------------------------------------------------------------------
Water Dev. Auth.:
Philip Morris, Inc., Pollution Control, Rev., 7.25%, 2008 10,000 10,905
Safe Water, Rev., 5.00%, 2012 8,340 7,714
---------------------------------------------------------------------------------------------------
Worthington City School District, Gen. Oblg., 6.375%, 2012 6,210 6,532
---------------------------------------------------------------------------------------------------
102,070
PENNSYLVANIA - 5.9%
- ---------------------------------------------------------------------------------------------------------------------------
Armstrong County Hospital Auth., St. Francis Medical Center
Proj., Rev., 6.25%, 2013 11,350 11,646
---------------------------------------------------------------------------------------------------
City of Pittsburgh Public Finance Auth., Wastewater, Rev.,
4.75% and 6.50%, 2016 and 2013 13,335 12,654
---------------------------------------------------------------------------------------------------
Columbia County, First Association Proj., First Mortgage
Rev., 9.00%, 2014 1,970 2,102
---------------------------------------------------------------------------------------------------
Convention Center Auth., Rev., 6.70% and 6.75%,
2014 and 2019 12,525 13,060
---------------------------------------------------------------------------------------------------
Dauphin County Industrial Dev. Auth., Susquehanna Center
Nursing Facility, First Mortgage Rev., 10.45%, 2011 1,100 726
---------------------------------------------------------------------------------------------------
Delaware County, Industrial Dev. Auth., Rev., 6.35%, 2025 5,000 5,091
---------------------------------------------------------------------------------------------------
Industrial Dev. Auth., Economic Dev., Rev., 5.50%, 2014 7,240 7,012
---------------------------------------------------------------------------------------------------
Intergovernmental Cooperation Auth., Special Tax
Rev., 5.00%, 2022 14,055 12,228
---------------------------------------------------------------------------------------------------
Lehigh County, General Purpose Auth., Lehigh Valley Hospital
Inc., Rev., 6.50%, 2010 6,000 6,467
---------------------------------------------------------------------------------------------------
McKean County Hospital Auth., Bradford Hospital Proj.,
Rev., 6.00% and 6.10%, 2013 and 2020 5,500 5,031
---------------------------------------------------------------------------------------------------
Monroeville, Hospital Auth., Forbes Health,
Rev., 6.25%, 2015 3,650 3,513
---------------------------------------------------------------------------------------------------
Philadelphia:
Gas Works Rev., 5.250% to 6.375%, 2008 through 2024 40,455 39,549
Municipal Auth., Lease Rev., 6.125% to 6.30%,
2008 through 2017 8,800 8,855
Water & Wastewater, Rev., 5.00% to 5.75%, 2013 through 2023 68,735 64,532
---------------------------------------------------------------------------------------------------
Schuylkill County Industrial Dev. Auth., Schuylkill Energy
Resources Inc. Proj., Resource Recovery Rev., 6.50%, 2010 14,505 14,665
- ---------------------------------------------------------------------------------------------------------------------------
207,131
</TABLE>
21
<PAGE> 15
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
ISSUER Principal Amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SOUTH CAROLINA - .6%
- ---------------------------------------------------------------------------------------------------------------------------
Charleston County, Public Facilities Corp., Certificates of
Participation, 6.875% and 7.00%, 2014 and 2019 $ 7,615 $ 8,301
---------------------------------------------------------------------------------------------------
Darlington County, Carolina Power & Light Company Proj.,
Pollution Control, Rev., 6.60%, 2010 7,500 8,118
---------------------------------------------------------------------------------------------------
Grand Strand, Water and Sewer, Rev., 6.375%, 2012 5,000 5,439
---------------------------------------------------------------------------------------------------
21,858
TENNESSEE - .9%
- ---------------------------------------------------------------------------------------------------------------------------
Housing Dev. Agcy., Mortgage Finance Program, Rev., 7.05%
and 7.125%, 2020 and 2026 25,980 27,259
---------------------------------------------------------------------------------------------------
Metropolitan Nashville Airport Auth., Airport Improvement,
Rev., 6.60%, 2015 5,250 5,605
---------------------------------------------------------------------------------------------------
32,864
TEXAS - 6.3%
- ---------------------------------------------------------------------------------------------------------------------------
Austin:
Airport System Prior Lien, Rev., 6.20%, 2015 15,360 15,450
Water, Sewer and Electric Rev., 11.00% and 14.00%,
1996 and 2001 4,485 5,681
---------------------------------------------------------------------------------------------------
Brazoria County, Health Facilities Dev. Corp., Brazosport
Memorial Hospital, Rev., 5.50%, 2013 4,350 4,150
---------------------------------------------------------------------------------------------------
Brazos River Auth., Texas Utilities Electric Company
Proj., Rev., 8.125%, 2020 4,495 4,986
---------------------------------------------------------------------------------------------------
Dallas-Fort Worth International Airport Facility Improvement
Corp., American Airlines, Rev., 7.50%, 2025 19,000 20,031
---------------------------------------------------------------------------------------------------
Denton County, Gen. Oblg., 5.00%, 2012 5,200 4,762
---------------------------------------------------------------------------------------------------
Ector County, Hospital District, Rev., 7.30%, 2012 550 586
---------------------------------------------------------------------------------------------------
Georgetown Higher Education Finance Corp., Southwestern
University Proj., Rev., 6.25%, 2009 840 872
---------------------------------------------------------------------------------------------------
Gulf Coast Waste Disposal Auth., Champion International,
Rev., 6.875%, 2028 5,500 5,680
---------------------------------------------------------------------------------------------------
Harris County:
Hospital District, Mortgage Rev., 7.40%, 2010 6,940 8,246
Toll Road Senior Lien, Rev., 5.00%, 2016 7,650 6,923
Toll Road Unlimited Tax and Subordinate Lien,
Rev., 6.75%, 2014 15,000 16,045
---------------------------------------------------------------------------------------------------
Housing Agcy., Single Family Mortgage Rev., 7.15%, 2012 1,295 1,370
---------------------------------------------------------------------------------------------------
Houston:
Higher Education Finance Corp., University of St. Thomas,
Rev., 7.25%, 2007 1,445 1,530
Water and Sewer System Rev., 6.125%, 2015 19,770 20,165
---------------------------------------------------------------------------------------------------
Lower Neeches Valley Auth., Industrial Dev. Corp., Mobil Oil,
Rev., 6.40%, 2030 20,870 21,156
---------------------------------------------------------------------------------------------------
Lubbock Health Facilities Dev. Corp., Methodist Hospital
Proj., Rev., 5.50%, 2014 4,000 3,826
---------------------------------------------------------------------------------------------------
Matagorda County, Navigation District Number 1:
Central Power and Light Company, Pollution Control,
Rev., 7.875%, 2016 10,890 11,444
Houston Lighting and Power Company, Pollution
Control, Rev., 7.875%, 2016 13,735 14,329
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE> 16
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
ISSUER Principal Amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mc Allen, Health Facilities Dev. Corp., Rev., 5.00%, 2015 $ 5,800 $ 5,203
---------------------------------------------------------------------------------------------------
Northwest Independent School District, Unlimited Tax, School
Building Gen. Oblg., zero coupon, 2010 4,890 2,065
---------------------------------------------------------------------------------------------------
Rio Grande Valley, Health Facilities Dev. Corp., Golden Palms
Retirement and Health Center, Rev., 6.40%, 2012 3,700 3,862
---------------------------------------------------------------------------------------------------
Sabine River Auth., Texas Utilities Electric Company,
Rev., 8.125%, 2020 1,470 1,592
---------------------------------------------------------------------------------------------------
State Gen. Oblg., 7.00%, 2012 11,407 12,048
---------------------------------------------------------------------------------------------------
Tarrant County Water Control Improvement District
Number One, Water Rev., 4.50%, 2011 5,000 4,283
---------------------------------------------------------------------------------------------------
Titus County Hospital District, Improvement,
Rev., 6.125%, 2013 6,700 6,477
---------------------------------------------------------------------------------------------------
Travis County Housing Finance Corp., Residential Mortgage,
Senior Rev., 7.00%, 2011 465 500
---------------------------------------------------------------------------------------------------
Turnpike Auth., Dallas North Tollway, Rev., 4.75%,
2011 through 2014 13,400 11,814
---------------------------------------------------------------------------------------------------
West Side Calhoun County, Union Carbide Chemicals
Proj., Rev., 6.40%, 2023 4,955 4,860
---------------------------------------------------------------------------------------------------
219,936
UTAH - .3%
- ---------------------------------------------------------------------------------------------------------------------------
Davis County Solid Waste Management & Energy Recovery,
Special Service District, Rev., 6.125%, 2009 4,200 4,062
---------------------------------------------------------------------------------------------------
Housing Finance Agcy., Single Family Mortgage
Rev., 8.625%, 2019 1,040 1,099
---------------------------------------------------------------------------------------------------
Intermountain Power Agcy., Power Supply,
Rev., 7.50%, 2021 4,395 4,765
---------------------------------------------------------------------------------------------------
West Valley City, Salt Lake County Excise Tax, Rev.,
10.625%, 2004 1,000 1,281
---------------------------------------------------------------------------------------------------
11,207
VIRGINIA - .1%
- ---------------------------------------------------------------------------------------------------------------------------
City of Roanoke, Industrial Dev. Auth.,
Hospital Rev., 5.25%, 2025 4,650 4,204
---------------------------------------------------------------------------------------------------
WASHINGTON - 3.0%
- ---------------------------------------------------------------------------------------------------------------------------
Public Power Supply System:
Nuclear Proj. #2, Rev., 7.00%, 2012 57,355 63,083
Nuclear Proj. #3, Rev., 5.375%, 2015 41,410 38,479
---------------------------------------------------------------------------------------------------
Snohomish County, Gen. Oblg., 5.70%, 2012 5,140 5,123
---------------------------------------------------------------------------------------------------
106,685
WISCONSIN - .8%
- ---------------------------------------------------------------------------------------------------------------------------
Health and Education Facilities Auth.:
Aurora Health Care Group, Rev., 5.25%, 2012 and 2023 26,500 24,059
Wausau Hospitals, Inc., Proj., Rev., 6.625%, 2011 3,000 3,193
---------------------------------------------------------------------------------------------------
27,252
WYOMING - .1%
- ---------------------------------------------------------------------------------------------------------------------------
Community Dev. Auth., Single Family Mortgage Rev., 7.875%
and 8.125%, 2017 and 2021 2,570 2,715
---------------------------------------------------------------------------------------------------
PUERTO RICO - .5%
- ---------------------------------------------------------------------------------------------------------------------------
Electric Power Auth., Rev., 5.25%, 2021 7,300 6,604
---------------------------------------------------------------------------------------------------
Puerto Rico, Gen. Oblg., 5.375, 2022 5,250 4,975
---------------------------------------------------------------------------------------------------
University, Rev., 5.25%, 2025 5,000 4,639
---------------------------------------------------------------------------------------------------
16,218
VIRGIN ISLANDS - .1%
- ---------------------------------------------------------------------------------------------------------------------------
Public Finance Auth., Rev., 7.25%, 2018 3,000 3,183
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE> 17
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
ISSUER Principal Amount Value
<S> <C> <C>
---------------------------------------------------------------------------------------------------
TOTAL OTHER MUNICIPAL OBLIGATIONS 88.8% $ 3,117,492
---------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL OBLIGATIONS 94.0%
(COST: $3,137,796) 3,300,550
---------------------------------------------------------------------------------------------------
MONEY MARKET INSTRUMENTS - 4.30% TO 5.00%
DUE OCT. 1995
District of Columbia $ 7,000 7,000
Florida Housing Finance Agcy. 300 300
Hillsborough County Industrial Dev. Auth., Florida 8,300 8,300
Louisiana Recovery District 7,400 7,400
Commonwealth of Massachusettes 9,050 9,050
New York City Gen. Oblg. 20,500 20,500
New York City Municipal Finance Auth. 36,100 36,100
New York State Energy Research and Dev. Auth. 18,600 18,600
Brazos River Auth. of Texas 11,300 11,300
Sabine River Auth. of Texas 3,200 3,200
---------------------------------------------------------------------------------------------------
TOTAL MONEY MARKET INSTRUMENTS 3.5%
(COST $121,750) 121,750
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 97.5%
(COST:$3,259,546) 3,422,300
---------------------------------------------------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES 2.5% 88,348
---------------------------------------------------------------------------------------------------
NET ASSETS-100% $3,510,648
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE TO PORTFOLIO OF INVESTMENTS
Based on the cost of investments of $3,259,546,000 for federal income tax
purposes at September 30, 1995, the gross unrealized appreciation was
$180,413,000, the aggregate gross unrealized depreciation was $17,659,000 and
the net unrealized appreciation of investments was $162,754,000.
See accompanying Notes to Financial statements.
24
<PAGE> 18
PORTFOLIO OF INVESTMENTS
KEMPER INTERMEDIATE MUNICIPAL BOND FUND
September 30, 1995
(Dollars in thousands)
<TABLE>
<CAPTION>
Issuer Principal amount Value
<S> <C> <C>
ADVANCE REFUNDED OBLIGATIONS SECURED AS TO PRINCIPAL
AND INTEREST BY UNITED STATES GOVERNMENT SECURITIES
- -------------------------------------------------------------------------------
Delaware - 1.0%
- -------------------------------------------------------------------------------
State, Gen. Oblg., 6.95%, to be
called 5-1-00 @ 102 $135 $ 152
- -------------------------------------------------------------------------------
Massachusetts - 1.8%
- -------------------------------------------------------------------------------
Bay Transportation Auth.,
Rev., 7.625%, to be called
3-1-00 @ 102 115 131
- -------------------------------------------------------------------------------
Water Restoration Auth., Rev., 7.00%
to be called 4-1-00 @ 102 145 162
- -------------------------------------------------------------------------------
293
New York - 1.7%
- -------------------------------------------------------------------------------
Dormitory Auth., State University
Educational Facilities,
Rev., 7.25%, to be called 5-15-00
at @ 102 145 165
- -------------------------------------------------------------------------------
Local Government Assistance Corp.,
Rev., 7.00% to be called 4-1-01 @ 102 100 114
- -------------------------------------------------------------------------------
279
Pennsylvania - .9%
- -------------------------------------------------------------------------------
Philadelphia Gas Works, Rev.,
7.70%, to be called 6-15-01 @ 102 120 141
- -------------------------------------------------------------------------------
Virginia - 1.3%
- -------------------------------------------------------------------------------
Arlington County Industrial Dev. Auth.,
The Arlington Hospital, Rev., 7.125%
to be called 9-1-01 @ 102 90 103
- -------------------------------------------------------------------------------
Richmond, Gen. Oblg., 6.875%,
to be called 1-15-00 @ 102 100 111
- -------------------------------------------------------------------------------
214
Washington - .7%
- -------------------------------------------------------------------------------
King County, Auburn School District
#408, Gen. Oblg., 7.00%, to be
called 12-1-00 @ 100 100 112
- -------------------------------------------------------------------------------
TOTAL ADVANCE REFUNDED OBLIGATIONS-7.4% 1,191
- -------------------------------------------------------------------------------
OTHER MUNICIPAL OBLIGATIONS
- -------------------------------------------------------------------------------
Arizona - 1.1%
- -------------------------------------------------------------------------------
State University Board of Regents,
Rev., 6.50%, 2001 85 94
- -------------------------------------------------------------------------------
Transportation Board, Highway Rev.,
6.10%, 2002 70 76
- -------------------------------------------------------------------------------
170
Arkansas - 2.0%
- -------------------------------------------------------------------------------
North Little Rock, Electric System,
Rev., 6.00% and 6.15%, 2001 and 2003 295 323
- -------------------------------------------------------------------------------
California - 3.5%
- -------------------------------------------------------------------------------
Fresno, Water System, Water
Remediation Proj., Rev., 7.50%, 2004 160 190
- -------------------------------------------------------------------------------
Sacramento Cogeneration Auth.,
Procter & Gamble Proj.,
Rev., 7.00%, 2004 200 215
State, Gen. Oblg., 6.10%, 2001 150 162
- -------------------------------------------------------------------------------
567
Colorado - 1.9%
- -------------------------------------------------------------------------------
Arapahoe County, Capital
Improvement, Highway Rev.,
6.90%, 2015 300 309
- -------------------------------------------------------------------------------
Connecticut -.0%
- -------------------------------------------------------------------------------
State, Gen. Oblg., 5.95%,
2000 5 5
- -------------------------------------------------------------------------------
</TABLE>
25
<PAGE> 19
Portfolio of Investments
<TABLE>
<CAPTION>
ISSUER Principal Amount Value
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
FLORIDA - 5.6%
- ---------------------------------------------------------------------------------------------------
Broward County School District, Gen. Oblg., 6.00%, 2004 $ 70 $ 75
---------------------------------------------------------------------------------
Department of Natural Resources, Preservation 2000,
Rev., 6.20%, 1999 80 85
---------------------------------------------------------------------------------
Hillsborough County Aviation Auth., Tampa International
Airport, Rev., 6.90%, 2011 5 5
---------------------------------------------------------------------------------
Lake County Resource Recovery, Industrial Dev.
Rev., 5.65%, 2005 200 195
---------------------------------------------------------------------------------
Miami Beach, Redevelopment Agency Tax, Incremental
Rev., 5.625%, 2009 250 243
---------------------------------------------------------------------------------
North Broward Hospital District, Rev., 6.125%, 2003 285 310
---------------------------------------------------------------------------------
913
GEORGIA - .9%
- ---------------------------------------------------------------------------------------------------
Atlanta International Airport, Rev., 6.50%, 2013 70 73
---------------------------------------------------------------------------------
Municipal Electric Power Auth., Rev., 6.00%, 2000 70 74
---------------------------------------------------------------------------------
147
HAWAII - 1.0%
- ---------------------------------------------------------------------------------------------------
State, Gen. Oblg., 7.25%, 2000 145 163
---------------------------------------------------------------------------------
ILLINOIS - 5.7%
- ---------------------------------------------------------------------------------------------------
Public Building Commission of Chicago, Rev.,
5.25%, 2004 450 459
---------------------------------------------------------------------------------
Health Facilities Auth., Franciscan Sisters Health Care Corp.
Proj., Rev., 6.25%, 2002 350 378
---------------------------------------------------------------------------------
McHenry and Lake County School District Number 15,
Certificates of Participation, Rev., 6.125%, 2003 85 93
---------------------------------------------------------------------------------
930
INDIANA - 2.0%
- ---------------------------------------------------------------------------------------------------
Johnson County Hospital Association,
Rev., 6.50%, 2002 300 329
---------------------------------------------------------------------------------
KENTUCKY - 5.4%
- ---------------------------------------------------------------------------------------------------
Lexington-Fayette Urban County, University of Kentucky
Alumni Association Commonwealth Library Proj.,
Rev., 6.50%, 2009 300 326
---------------------------------------------------------------------------------
Turnpike Auth. Economic Dev. Road Revitalization,
Rev., 5.30%, 2004 455 473
---------------------------------------------------------------------------------
University of Kentucky, Consolidated Educational Building,
Rev., 6.00%, 1999 70 73
---------------------------------------------------------------------------------
872
LOUISIANA - 2.1%
- ---------------------------------------------------------------------------------------------------
State, Gen. Oblg., 7.00%, 2001 300 337
---------------------------------------------------------------------------------
MAINE - 1.8%
- ---------------------------------------------------------------------------------------------------
Health and Higher Education Facilities Auth., Rev., 6.30% and
6.50%, 2004 and 2006 260 285
---------------------------------------------------------------------------------
MARYLAND - .5%
- ---------------------------------------------------------------------------------------------------
Howard County, Consolidated Public Improvement,
Gen. Oblg., 6.90%, 1999 70 76
---------------------------------------------------------------------------------
</TABLE>
26
<PAGE> 20
PORTFOLIO OF INVESTMENTS
<TABLE>
Issuer Principal amount Value
<S> <C> <C> <C>
Massachusetts - 2.2%
- ---------------------------------------------------------------------------------------------------------------------------
Commonwealth, Gen. Oblg., 7.00%, 2007 $275 $304
---------------------------------------------------------------------------------------------------
Bay Transit Auth., Rev., 6.50%, 2004 5 6
---------------------------------------------------------------------------------------------------
Water Pollution Abatement Trust, SESD Loan Program,
Rev., 6.20%, 2010 45 48
---------------------------------------------------------------------------------------------------
358
Michigan - 6.8%
- ---------------------------------------------------------------------------------------------------------------------------
Detroit, Gen. Oblg., 6.70%, 2010 300 311
---------------------------------------------------------------------------------------------------
Grand Rapids, Downtown Dev. Auth., Rev., 6.20%, 2004 175 191
---------------------------------------------------------------------------------------------------
Macomb County, Chippewa Valley Schools, Gen. Oblg.,
7.00%, 2001 350 393
---------------------------------------------------------------------------------------------------
State Building Auth., Rev., 6.25% and 6.50%, 2000 and 2004 165 183
---------------------------------------------------------------------------------------------------
Oakland County, Birmingham CSO Drainage District,
Rev., 5.50%, 2002 25 26
---------------------------------------------------------------------------------------------------
1,104
Nebraska - .3%
- ---------------------------------------------------------------------------------------------------------------------------
Public Power District, Nuclear Facility, Rev., 5.70%, 2004 50 52
---------------------------------------------------------------------------------------------------
Nevada - 4.6%
- ---------------------------------------------------------------------------------------------------------------------------
Capital Improvement, Gen. Oblg., 5.90%, 2001 250 266
---------------------------------------------------------------------------------------------------
Clark County, Motor Vehicle Fuel Tax Rev., 5.625%, 2002 70 74
---------------------------------------------------------------------------------------------------
Washoe County, Gen. Oblg., 5.20%, 2003 400 411
---------------------------------------------------------------------------------------------------
751
New Jersey - 3.0%
- ---------------------------------------------------------------------------------------------------------------------------
Middlesex County Utility Auth., Solid Waste System,
Rev., 6.10%, 2001 300 326
---------------------------------------------------------------------------------------------------
State Transit System, Rev., 6.00%, 2001 150 161
---------------------------------------------------------------------------------------------------
487
New York - 9.4%
- ---------------------------------------------------------------------------------------------------------------------------
New York City:
Gen. Oblg., 5.75% and 6.50%, 2003 and 2002 200 206
Industrial Dev. Auth., USTA National Tennis Center
Inc. Proj., Rev., 6.10%, 2004 200 217
---------------------------------------------------------------------------------------------------
Dormitory Auth.:
College and University Education Loan, Rev., 5.70%, 2007 250 256
City University Construction, Rev., 5.40%, 2002 350 367
---------------------------------------------------------------------------------------------------
Metropolitian Transit Auth., Rev., 5.00%, 2003 350 359
---------------------------------------------------------------------------------------------------
Niagara Falls, Water Treatment Plant, Rev., 6.40%, 2004 100 110
---------------------------------------------------------------------------------------------------
1,515
Ohio - 5.4%
- ---------------------------------------------------------------------------------------------------------------------------
Cleveland Water Works System, Rev., 6.125%, 2003 450 488
---------------------------------------------------------------------------------------------------
Northeast Regional Sewer District, Wastewater Rev., 5.10%, 2007 250 248
---------------------------------------------------------------------------------------------------
Water Dev. Auth., Pure Water Improvement Proj., Rev.,
5.75%, 2003 5 5
---------------------------------------------------------------------------------------------------
State, Gen. Oblg., 5.50%, 2001 125 132
---------------------------------------------------------------------------------------------------
873
Oklahoma - .1%
- ---------------------------------------------------------------------------------------------------------------------------
Muskogee County, Gen. Oblg., 6.00%, 2001 10 11
---------------------------------------------------------------------------------------------------
Pennsylvania - 10.5%
- ---------------------------------------------------------------------------------------------------------------------------
Allegheny County Hospital Dev. Auth., Magee Women's Hospital,
Rev., 6.25%, 2008 300 317
---------------------------------------------------------------------------------------------------
McKean County Hospital Auth., Bradford Hospital,
Rev., 5.375%, 2003 350 337
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE> 21
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
Issuer Principal Amount Value
<S> <C> <C>
Intergovernmental Cooperation Auth., City of Philadelphia
Funding Program, Rev., 6.00%, 2002 $285 $ 306
---------------------------------------------------------------------------------------------------
Philadelphia:
Airport Marina, Rev., 5.30%, 2004 200 203
Gas Works Rev., 6.25%, 2008 150 157
Water, Wasterwater Rev., 6.25%, 2008 300 327
---------------------------------------------------------------------------------------------------
Schuylkill County Industrial Dev. Auth., Schuylkill Energy
Resources Inc., Rev., 6.50%, 2010 45 45
---------------------------------------------------------------------------------------------------
1,692
Texas - 7.9%
---------------------------------------------------------------------------------------------------
Austin Airport System, Prior Lien, Rev., 6.10%, 2011 400 409
---------------------------------------------------------------------------------------------------
Fort Worth, Water and Sewer Rev., 5.90%, 2001 80 85
---------------------------------------------------------------------------------------------------
Granbury Independent School District, Gen. Oblg., 5.00%, 2009 105 99
---------------------------------------------------------------------------------------------------
Houston Higher Education Finance Corp., University of
St. Thomas, Rev., 7.25%, 2007 100 107
---------------------------------------------------------------------------------------------------
San Antonio, Water Rev., 6.00%, 2001 255 273
---------------------------------------------------------------------------------------------------
Public Finance Auth., Building Rev., 5.875%, 2002 210 225
---------------------------------------------------------------------------------------------------
Trinity River Auth., Ten Mile Creek System, Rev., 5.50%, 2002 70 74
---------------------------------------------------------------------------------------------------
1,272
Washington - 2.6%
---------------------------------------------------------------------------------------------------
Public Power Supply System, Nuclear Proj. #2, Rev., 5.10%, 2004 350 349
---------------------------------------------------------------------------------------------------
Tacoma, Electric System, Rev., 5.80%, 2004 70 74
---------------------------------------------------------------------------------------------------
423
Puerto Rico - 2.2%
---------------------------------------------------------------------------------------------------
Bank and Finance Agency, Affordable Housing, Single
Family Mortgage Rev., 5.90%, 2010 250 251
---------------------------------------------------------------------------------------------------
Puerto Rico, Gen. Oblg., 5.50%, 2009 100 102
---------------------------------------------------------------------------------------------------
353
---------------------------------------------------------------------------------------------------
Total Other Municipal Obligations - 88.5% 14,317
---------------------------------------------------------------------------------------------------
Total Investments - 95.9%
(Cost:$14,797) 15,508
---------------------------------------------------------------------------------------------------
Cash and Other Assets, Less Liabilities - 4.1% 661
---------------------------------------------------------------------------------------------------
Net Assets 100% $16,169
---------------------------------------------------------------------------------------------------
</TABLE>
Note to Portfolio of Investments
Based on the cost of investments of $14,797,000 for federal income tax
purposes at September 30, 1995, the gross unrealized appreciation was
$713,000, the aggregate gross unrealized depreciation was $2,000, and the net
unrealized appreciation of investments was $711,000.
See accompanying Notes to Financial statements.
28
<PAGE> 22
KEMPER NATIONAL TAX-FREE INCOME SERIES
PART C.
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
(i) Financial statements included in Part A of the Registration
Statement:
Financial Highlights.
(ii) Financial statements included in Part B of the Registration
Statement:
Kemper Municipal Bond Fund.
Statement of assets and liabilities--September 30, 1995.
Statement of operations for the year ended September 30, 1995.
Statement of changes in net assets for each of the two years in
the period ended September 30, 1995.
Portfolio of investments--September 30, 1995.
Notes to financial statements.
Kemper Intermediate Municipal Bond Fund.
Statement of assets and liabilities--September 30, 1995.
Statement of operations for the period November 1, 1994 to
September 30, 1995.
Statement of changes in net assets for the period November 1,
1994 to September 30, 1995.
Portfolio of investments--September 30, 1995.
Notes to financial statements.
Schedules II, III, IV and V are omitted as the required information is
not present.
Schedule I has been omitted as the required information is presented in
the portfolio of investments.
(b) Exhibits
<TABLE>
<S> <C>
99.B1(a) Amended and Restated Agreement and Declaration of Trust.*
99.B1(b) Written Instrument Amending the Agreement and Declaration of
Trust.*
99.B2. By-Laws.*
99.B3. Inapplicable.
99.B4(a) Text of Share Certificate.*
99.B4(b) Written Instrument Establishing and Designating Separate
Classes of Shares.*
99.B4(c) Written Instrument Establishing and Designating Kemper
Intermediate Municipal Bond Fund.*
99.B4(d) Written Instrument Changing the Name of a Series.*
99.B5(a) Investment Management Agreement (Kemper Municipal Bond Fund).*
99.B5(b) Investment Management Agreement (Kemper Intermediate Municipal
Bond Fund).*
99.B6(a) Underwriting and Distribution Services Agreement.*
99.B6(b) Assignment and Assumption Agreement*
99.B6(c) Form of Selling Group Agreement.*
99.B7. Inapplicable.
99.B8. Custody Agreement.*
99.B9(a) Agency Agreement.*
99.B9(b) Supplement to Agency Agreement.*
99.B9(c) Administrative Services Agreement.*
99.B9(d) Amendment to Administrative Services Agreement.*
99.B9(e) Assignment and Assumption Agreement*
99.B10. Inapplicable.
99.B11(a) Consent of Independent Auditors.
99.B11(b) Report of Independent Auditors.*
99.B12. Inapplicable.
</TABLE>
C-1
<PAGE> 23
<TABLE>
<S> <C>
99.B13. Inapplicable.
99.B14. Inapplicable.
99.B15. See 6(a) above (Class B and Class C shares).
99.B16. Performance Calculations.*
99.B18. Multi-Distribution System Plan.*
99.B24. Powers of Attorney.*
27.All Municipal Financial Data Schedule*
27.A Municipal Financial Data Schedule*
27.B Municipal Financial Data Schedule*
27.C Municipal Financial Data Schedule*
27.All Inter.Muni. Financial Data Schedule*
27.A Inter.Muni. Financial Data Schedule*
27.B Inter.Muni. Financial Data Schedule*
27.C Inter.Muni. Financial Data Schedule*
99.485(b) Letter Representation of Counsel (Rule 485(b)).
</TABLE>
- ---------------
* Incorporated herein by reference to the Amendment to Registrant's
Registration Statement on Form N-1A identified below:
<TABLE>
<CAPTION>
POST-EFFECTIVE
EXHIBIT NO. AMENDMENT NO. DATE OF FILING
----------------------------------- ----------------------- -----------------------
<S> <C> <C>
16 26 1/20/89
1, 4, 5, 6, and 9 39 3/14/95
2, 8, 11(b), 18, 24 and 27 40 10/30/95
</TABLE>
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT
Inapplicable.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES
As of October 13, 1995, there were 86,252 Class A, 1,059 Class B and 92
Class C holders of record of Kemper Municipal Bond Fund and 218 Class A, 57
Class B and 15 Class C holders of record of Kemper Intermediate Municipal Bond
Fund.
ITEM 27. INDEMNIFICATION
Article VIII of the Registrant's Agreement and Declaration of Trust
(Exhibit 1 hereto, which is incorporated herein by reference) provides in effect
that the Registrant will indemnify its officers and trustees under certain
circumstances. However, in accordance with Section 17(h) and 17(i) of the
Investment Company Act of 1940 and its own terms, said Article of the Agreement
and Declaration of Trust does not protect any person against any liability to
the Registrant or its shareholders to which he would otherwise be subject by
reason of willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties involved in the conduct of his office.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to trustees, officers, and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that, in the opinion of the Securities and Exchange Commission,
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a trustee, officer, or controlling person of the Registrant in the
successful defense of any action, suit, or proceeding) is asserted by such
trustee, officer, or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question as to whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
C-2
<PAGE> 24
ITEM 28.(A) BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER
Information pertaining to business and other connections of the
Registrant's investment adviser is hereby incorporated by reference to the
section of the Prospectus captioned "Investment Manager and Underwriter," and to
the section of the Statement of Additional Information captioned "Investment
Manager and Underwriter."
Kemper Financial Services, Inc., investment adviser of the Registrant, is
investment adviser of the following:
Kemper Mutual Funds:
Kemper Technology Fund
Kemper Total Return Fund
Kemper Growth Fund
Kemper Small Capitalization Equity Fund
Kemper Income and Capital Preservation Fund
Kemper Money Market Fund
Kemper National Tax-Free Income Series
Kemper Diversified Income Fund
Kemper High Yield Fund
Cash Equivalent Fund
Kemper U.S. Government Securities Fund
Kemper International Fund
Kemper Portfolios
Kemper State Tax-Free Income Series
Tax-Exempt California Money Market Fund
Kemper Adjustable Rate U.S. Government Fund
Kemper Blue Chip Fund
Kemper Global Income Fund
Kemper Target Equity Fund
Cash Account Trust
Investors Cash Trust
Tax-Exempt New York Money Market Fund
Kemper Value Plus Growth Fund
Kemper Closed-End Funds:
Kemper High Income Trust
Kemper Intermediate Government Trust
Kemper Municipal Income Trust
Kemper Multi-Market Income Trust
Kemper Strategic Municipal Income Trust
The Growth Fund of Spain, Inc.
Kemper Strategic Income Fund
Kemper Financial Services, Inc. also furnishes investment advice to and
manages investment portfolios for other clients including Kemper Investors Fund,
Sterling Funds and Kemper International Bond Fund.
C-3
<PAGE> 25
Item 28(b) Business and Other Connections of Officers
and Directors of Kemper Financial Services Inc.,
the Investment Advisor
MATHIS, DAVID B.
Director, Kemper Financial Services, Inc.
Director, Federal Kemper Life Assurance Company
Director, Fidelity Life Association
Director, Chairman and Chief Executive Officer, Kemper Corporation
Director, Kemper Financial Companies, Inc.
Director, Kemper Investors Life Insurance Company
Director, IMC Global, Inc.
Trustee, Kemper Funds
Chairman of the Board, Lumbermen's Mutual Casualty Company
TIMBERS, STEPHEN B.
Director, Chairman, Chief Executive Officer and Chief Investment Officer,
Kemper Financial Services, Inc.
Director, Vice President, Kemper Asset Holdings, Inc.
Director, Kemper Distributors, Inc.
Director, Chairman, Kemper Asset Management Company
Director, Chairman, Kemper Service Company
Director, Federal Kemper Life Assurance Company
Director, Dreman Value Advisors, Inc.
Director, Vice President, FKLA Loire Court, Inc.
Vice President, FKLA Realty Corporation
Director, President, Galaxy Offshore, Inc.
Director, Vice President, FLA First Nationwide, Inc.
Director, Vice President, FLA Plate Building, Inc.
Vice President, FLA Realty Corp.
Director, President and Chief Operating Officer, Kemper
Corporation
Director, Chairman, President and Chief Executive Officer, Kemper Financial
Companies, Inc.
Director, President, Kemper International Management, Inc.
Director, Kemper Investors Life Insurance Company
Trustee and President, Kemper Funds
Vice President, Kemper Portfolio Corp.
Director, Vice President, Kemper Real Estate, Inc.
C-4
<PAGE> 26
Director, Vice President, Kemper/Cymrot Management, Inc.
Director, Vice President, Kemper/Cymrot, Inc.
Vice President, KFC Portfolio Corp.
Director, Vice President, KI Arnold Industrial, Inc.
Director, Vice President, KI Canyon Park, Inc.
Director, Vice President, KI Centreville, Inc.
Director, Vice President, KI Colorado Boulevard, Inc.
Director, Vice President, KI Dublin Boulevard, Inc.
Director, Vice President, KI LaFiesta Square, Inc.
Director, Vice President, KI Lewinsville, Inc.
Director, Vice President, KI Monterey Research, Inc.
Director, Vice President, KI Olive Street, Inc.
Director, Vice President, KI Sutter Street, Inc.
Director, Vice President, KI Thornton Boulevard, Inc.
Vice President, KILICO Realty Corporation
Director, Vice President, KR 77 Fitness Center, Inc.
Director, Vice President, KR Avondale Redmond, Inc.
Director, Vice President, KR Black Mountain, Inc.
Director, Vice President, KR Brannan Resources, Inc.
Director, Vice President, KR Clay Capital, Inc.
Director, Vice President, KR Cranbury, Inc.
Director, Vice President, KR Delta Wetlands, Inc.
Director, Vice President, KR Gainesville, Inc.
Director, Vice President, KR Hotels, Inc.
Director, Vice President, KR Lafayette Apartments, Inc.
Director, Vice President, KR Lafayette BART, Inc.
Director, Vice President, KR Palm Plaza, Inc.
Director, Vice President, KR Red Hill Associates, Inc.
Director, Vice President, KR Seagate/Gateway North, Inc.
Director, Vice President, KR Venture Way, Inc.
Director, Vice President, KR Walnut Creek, Inc.
Director, The LTV Corporation
Director, Investment Analysts Society of Chicago
NEAL, JOHN E.
Director, President and Chief Operating Officer, Kemper Financial Services,
Inc.,
Senior Vice President, Kemper Corporation
Director, President, Kemper Service Company
Director, Kemper Distributors, Inc.
Director, Kemper Asset Management Company
Director, Dreman Value Advisors, Inc.
Director, Ardenwood Financial Corporation
Director, Avondale Redmond, Inc.
Director, Black Mountain, Inc.
Director, Brannan Resources, Inc.
Director, Butterfield Financial Corporation
Director, Camelot Financial Corporation
Director, Clay Capital, Inc.
Director, Coast Broadcasting Company
C-5
<PAGE> 27
Director, Crow Canyon, Inc.
Director, Hawaii Kai Development Company
Director, Kacor Gateway, Inc.
Director, Kailua Associates, Inc.
Director, Kacor Trust Deed Company
Director, Community Investment Corporation
Director, Continental Community Development Corporation
Director, President, Kemper Real Estate, Inc.
Director, President, Kemper Cymrot, Inc.
Director, President, Cymrot Management, Inc.
Director, President, FKLA Loire Court, Inc.
Director, Vice President, FKLA Realty Corporation
Director, President, FLA First Nationwide, Inc.
Director, President, FLA Plate Building, Inc.
Director, Vice President, FLA Realty Corporation
Director, Kemper/Lumbermens Properties, Inc.
Director, Senior Vice President, Kemper Real Estate Management Company
Director, KRDC, Inc.
Director, Lafayette Apartments, Inc.
Director, Lafayette Hills, Inc.
Director, Margarita Village Retirement Community, Inc.
Director, Mesa Homes
Director, Mesa Homes Brokerage Company
Director, Mount Doloroes Corporation
Director, Montgomery Gallery, Inc.
Director, Monterey Research Park, Inc.
Director, One Corporate Centre, Inc.
Director, Pacific Homes, Inc.
Director, Palomar Triad, Inc.
Director, Pine/Battery Properties, Inc.
Director, Rancho and Industrial Property Brokerage, Inc.
Director, Rancho California, Inc.
Director, Rancho Regional Shopping Center, Inc.
Director, Red Hill Associates, Inc.
Director, Seagate Associates, Inc.
Director, Seattle Gateway, Inc.
Director, Sutter Street, Inc.
Director, Technology Way, Inc.
Director, Time DC, Inc.
Director, Tourelle Corporation
Director, Two Corporate Centre, Inc.
Director, Venture Way, Inc.
Director, Vice President, Kemper Portfolio Corporation
Director, Vice President, KFC Portfolio Corporation
Director, Vice President, KILICO Realty Corporation
Director, President, KI Arnold Industrial, Inc.
Director, President, KI Canyon Park, Inc.
Director, President, KI Centreville, Inc.
Director, President, KI Colorado Boulevard, Inc.
Director, President, KI Dublin Boulevard, Inc.
Director, President, KI LaFiesta Square, Inc.
C-6
<PAGE> 28
Director, President, KI Lewinsville, Inc.
Director, President, KI Monterey Research, Inc.
Director, President, KI Olive Street, Inc.
Director, President, KI Thornton Boulevard, Inc.
Director, President, KI Sutter Street, Inc.
Director, President, KR 77 Fitness Center, Inc.
Director, President, KR Avondale Redmond, Inc.
Director, President, KR Black Mountain, Inc.
Director, President, KR Brannan Resources, Inc.
Director, President, KR Clay Capital, Inc.
Director, President, KR Cranbury, Inc.
Director, President, KR Delta Wetlands, Inc.
Director, President, KR Gainesville, Inc.
Director, President, KR Hotels, Inc.
Director, President, KR Lafayette Apartments, Inc.
Director, President, KR Lafayette BART, Inc.
Director, President, KR Palm Plaza, Inc.
Director, President, KR Red Hill Associates, Inc.
Director, President, KR Seagate/Gateway North, Inc.
Director, President, KR Venture Way, Inc.
Director, President, KR Walnut Creek, Inc.
Director, K-P Greenway, Inc.
Director, K-P Plaza Dallas, Inc.
Director, Kemper/Prime Acquisition Fund, Inc.
Director, KRDC, Inc.
Director, RespiteCare
Director, President, SMS Realty Corp.
Director, Urban Shopping Centers, Inc.
Vice President, Kemper-Dreman Fund, Inc.
Vice President, Kemper Value Plus Growth Fund
Vice President, Kemper Quantitative Equity Fund
Vice President, Kemper Horizon Fund
PETERS, JOHN E.
Director, Senior Executive Vice President, Kemper Financial
Services, Inc.
Director, Dreman Value Advisors, Inc.
Director, President, Kemper Distributors, Inc.
Vice President, Kemper Asset Management Company
Vice President, Kemper Funds
Director, Kemper Service Company
FITZPATRICK, JOHN H.
Director, Chief Financial Officer, Kemper Financial Services, Inc.
Director, Ardenwood Financial Corporation
Director, Camelot Financial Corporation
Director, Crow Canyon, Inc.
Director, Hawaii Kai Development Company
Director, Kacor Gateway, Inc.
Director, Kacor Trust Deed Company
Director, Senior Vice President and Chief Financial Officer,
C-7
<PAGE> 29
Federal Kemper Life Assurance Company
Senior Vice President, Chief Financial Officer, Fidelity Life
Association
Director, Vice President, FKLA Loire Court, Inc.
Director, Vice President, FLA First Nationwide, Inc.
Director, Vice President, FLA Plate Building, Inc.
Director, Executive Vice President and Chief Financial Officer,
Kemper Corporation
Director, Executive Vice President and Chief Financial
Officer, Kemper Financial Companies, Inc.
Senior Vice President, Kemper Investors Life Insurance Company
Director, Vice President, Kemper/Cymrot Management, Inc.
Director, Vice President, Kemper/Cymrot, Inc.
Director, Vice President, Kemper/Lumbermens Properties, Inc.
Director, Senior Vice President, Kemper Real Estate Management
Company
Director, KRDC, Inc.
Director, Margarita Village Retirement Community, Inc.
Director, Mesa Homes
Director, Mesa Homes Brokerage Company
Director, Montgomery Gallery, Inc.
Director, One Corporate Centre, Inc.
Director, Pacific Homes, Inc.
Director, Palomar Triad, Inc.
Director, Pine/Battery Properties, Inc.
Director, Rancho and Industrial Property Brokerage, Inc.
Director, Rancho California, Inc.
Director, Rancho Regional Shopping Center, Inc.
Director, Seattle Gateway, Inc.
Director, SMS Realty Corporation
Director, Sutter Street, Inc.
Director, Time DC, Inc.
Director, Two Corporate Centre, Inc.
Director, Vice President, KFC Portfolio Corp.
Director, Vice President, KI Arnold Industrial, Inc.
Director, Vice President, KI Canyon Park, Inc.
Director, Vice President, KI Centreville, Inc.
Director, Vice President, KI Colorado Boulevard, Inc.
Director, Vice President, KI Dublin Boulevard, Inc.
Director, Vice President, KI LaFiesta Square, Inc.
Director, Vice President, KI Lewinsville, Inc.
Director, Vice President, KI Monterey Research, Inc.
Director, Vice President, KI Olive Street, Inc.
Director, Vice President, KI Sutter Street, Inc.
Director, Vice President, KI Thornton Boulevard, Inc.
Director, Vice President, KILICO Realty Corporation
Director, Vice President, KR 77 Fitness Center, Inc.
Director, Vice President, KR Avondale Redmond, Inc.
Director, Vice President, KR Black Mountain, Inc.
Director, Vice President, KR Brannan Resources, Inc.
Director, Vice President, KR Clay Capital, Inc.
Director, Vice President, KR Cranbury, Inc.
Director, Vice President, KR Delta Wetlands, Inc.
Director, Vice President, KR Gainesville, Inc.
C-8
<PAGE> 30
Director, Vice President, KR Hotels, Inc.
Director, Vice President, KR Lafayette Apartments, Inc.
Director, Vice President, KR Lafayette BART, Inc.
Director, Vice President, KR Palm Plaza, Inc.
Director, Vice President, KR Red Hill Associates, Inc.
Director, Vice President, KR Seagate/Gateway North, Inc.
Director, Vice President, KR Venture Way, Inc.
Director, Vice President, KR Walnut Creek, Inc.
BEIMFORD, JR., JOSEPH P.
Executive Vice President, Kemper Financial Services, Inc.
Vice President, Cash Account Trust
Vice President, Cash Equivalent Fund
Vice President, Galaxy Offshore, Inc.
Vice President, Investors Cash Trust
Vice President, Kemper Adjustable Rate U.S. Government Fund
Vice President, Kemper Diversified Income Fund
Vice President, Kemper Global Income Fund
Vice President, Kemper High Income Trust
Vice President, Kemper High Yield Fund
Vice President, Kemper Income and Capital Preservation Fund
Vice President, Kemper Intermediate Government Trust
Vice President, Kemper International Bond Fund
Vice President, Kemper Investors Fund
Vice President, Kemper Money Market Fund
Vice President, Kemper Multi-Market Income Trust
Vice President, Kemper Municipal Income Trust
Vice President, Kemper National Tax-Free Income Series
Vice President, Kemper Portfolios
Vice President, Kemper State Tax-Free Income Series
Vice President, Kemper Strategic Income Fund
Vice President, Kemper Strategic Municipal Income Trust
Vice President, Kemper U.S. Government Securities Fund
Vice President, Sterling Funds
Vice President, Tax-Exempt California Money Market Fund
Vice President, Tax-Exempt New York Money Market Fund
CHAPMAN II, WILLIAM E.
Executive Vice President, Kemper Financial Services, Inc.
Director, Executive Vice President, Kemper Distributors, Inc.
COXON, JAMES H.
Executive Vice President, Kemper Financial Services, Inc.
Director, Vice President, Galaxy Offshore, Inc.
Executive Vice President, Kemper Asset Management Company
FERRO, DENNIS H.
Executive Vice President, Kemper Financial Services, Inc.
Vice President, Kemper International Fund
Director, Managing Director-Equities, Kemper Investment Management
Company Limited
Vice President, Kemper Investors Fund
Vice President, Kemper Target Equity Fund
C-9
<PAGE> 31
Vice President, The Growth Fund of Spain, Inc.
GREENAWALT, JAMES L.
Executive Vice President, Kemper Financial Services, Inc.
Director, Executive Vice President, Kemper Distributors, Inc.
JOHNS, GORDON K.
Executive Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Global Income Fund
Vice President, Kemper Diversified Income Fund
Vice President, Kemper International Bond Fund
Vice President, Kemper International Management, Inc.
Managing Director and Joint Secretary, Kemper Investment
Management Company Limited
Vice President, Kemper Multi-Market Income Trust
Director, Thames Heritage Parade Limited
LANGBAUM, GARY A.
Executive Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Total Return Fund
Vice President, Kemper Investors Fund
REYNOLDS, STEVEN H.
Executive Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Technology Fund
Vice President, Kemper Total Return Fund
Vice President, Kemper Growth Fund
Vice President, Kemper Small Capitalization Equity Fund
Vice President, Kemper International Fund
Vice President, Kemper Blue Chip Fund
Vice President, Kemper Value Plus Growth Fund
Vice President, Kemper Quantitative Equity Fund
Vice President, Kemper Target Equity Fund
Vice President, Kemper Sterling Funds
Vice President, Kemper Horizon Fund
Vice President, Kemper Investors Fund
Vice President, The Growth Fund of Spain, Inc.
SILIGMUELLER, DALE S.
Executive Vice President, Kemper Financial Services, Inc.
Director, Executive Vice President, Kemper Service Company
BUKOWSKI, DANIEL J.
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Quantitative Equity Fund
Vice President, Kemper Value Plus Growth Fund
BUTLER, DAVID H.
Senior Vice President, Kemper Financial Services, Inc.
CERVONE, DAVID M.
Senior Vice President, Kemper Financial Services, Inc.
CESSINE, ROBERT S.
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Income and Capital Preservation Fund
Vice President, Kemper Diversified Income Fund
Vice President, Kemper Multi-Market Income Trust
CHESTER, TRACY McCORMICK
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Blue Chip Fund
Vice President, Kemper Target Equity Fund
Vice President, Kemper Value Plus Growth Fund
CIARLELLI, ROBERT W.
Senior Vice President, Kemper Financial Services, Inc.
Executive Vice President, Kemper Service Company
C-10
<PAGE> 32
COLLECCHIA, FRANK E.
Senior Vice President, Kemper Financial Services, Inc.
Senior Investment Officer, Federal Kemper Life Assurance
Company
Senior Investment Officer, Fidelity Life Association
Vice President, FKLA Loire Court, Inc.
Vice President, FLA First Nationwide, Inc.
Vice President, FLA Plate Building, Inc.
Vice President, Galaxy Offshore, Inc.
Senior Investment Officer, Kemper Investors Life Insurance
Company
Vice President, KI Arnold Industrial, Inc.
Vice President, KI Canyon Park, Inc.
Vice President, KI Centreville, Inc.
Vice President, KI Colorado Boulevard, Inc.
Vice President, KI Dublin Boulevard, Inc.
Vice President, KI LaFiesta Square, Inc.
Vice President, KI Lewinsville, Inc.
Vice President, KI Monterey Research, Inc.
Vice President, KI Olive Street, Inc.
Vice President, KI Sutter Street, Inc.
Vice President, KI Thornton Boulevard, Inc.
Vice President, KR 77 Fitness Center, Inc.
Vice President, KR Avondale Redmond, Inc.
Vice President, KR Black Mountain, Inc.
Vice President, KR Brannan Resources, Inc.
Vice President, KR Clay Capital, Inc.
Vice President, KR Cranbury, Inc.
Vice President, KR Delta Wetlands, Inc.
Vice President, KR Gainesville, Inc.
Vice President, KR Halawa Associates, Inc.
Vice President, KR Hotels, Inc.
Vice President, KR Lafayette Apartments, Inc.
Vice President, KR Lafayette BART, Inc.
Vice President, KR Palm Plaza, Inc.
Vice President, KR Red Hill Associates, Inc.
Vice President, KR Seagate/Gateway North, Inc.
Vice President, KR Venture Way, Inc.
Vice President, KR Walnut Creek, Inc.
COLLORA, PHILIP J.
Senior Vice President and Assistant Secretary, Kemper Financial
Services, Inc.
Vice President and Secretary, Kemper Funds
Assistant Secretary, Kemper International Management, Inc.
DIERENFELDT, DAVID F.
Senior Vice President, Associate General Counsel,
Assistant Secretary, Kemper Financial Services, Inc.
Vice President and Secretary, Kemper Distributors, Inc.
Secretary, Dreman Value Advisors, Inc.
Assistant Secretary, Galaxy Offshore, Inc.
C-11
<PAGE> 33
Director, Secretary, INVEST Financial Corporation
Secretary, INVEST Financial Corporation Holding Company
Assistant Secretary, Investors Brokerage Services
Insurance Agency, Inc.
Assistant Secretary, Investors Brokerage Services, Inc.
Secretary, Kemper Asset Management Company
Assistant Secretary, Kemper International Management, Inc.
Assistant Secretary, Kemper Investment Management Company
Limited
Vice President and Assistant Secretary, Kemper Investors Fund
Secretary, Kemper Service Company
DUDASIK, PATRICK H.
Senior Vice President, Kemper Financial Services, Inc.
Executive Vice President, Chief Financial Officer and Treasurer,
Dreman Value Advisors, Inc.
Vice President and Treasurer, Kemper Asset Management Company
Treasurer and Chief Financial Officer, Kemper Distributors, Inc.
Treasurer and Chief Financial Officer, Kemper Service Company
Director and Treasurer, Kemper Investment Management Company
Limited
DUFFY, JEROME L.
Senior Vice President, Kemper Financial Services, Inc.
Treasurer, Kemper Funds
GALLAGHER, MICHAEL L.
Senior Vice President, Kemper Financial Services, Inc.
Senior Vice President, Kemper Service Company
GLASSMAN, HARVEY
Senior Vice President, Kemper Financial Services, Inc.
GOERS, RICHARD A.
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Technology Fund
GUENTHER, HAROLD E.
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Galaxy Offshore, Inc.
HUSSEY, KAREN A.
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Investors Fund
Vice President, Kemper Small Capitalization Equity Fund
INNES, BRUCE D.
Senior Vice President, Kemper Financial Services, Inc.
Co-President, International Association of Corporate and
Professional Recruiters
C-12
<PAGE> 34
KLEIN, GEORGE
Senior Vice President, Kemper Financial Services, Inc.
Director, Executive Vice President, Kemper Asset Management
Company
KORTH, FRANK D.
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Technology Fund
McNAMARA, MICHAEL A.
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Diversified Income Fund
Vice President, Kemper High Income Trust
Vice President, Kemper High Yield Fund
Vice President, Kemper Investors Fund
Vice President, Kemper Multi-Market Income Trust
Vice President, Kemper Strategic Income Fund
MIER, CHRISTOPHER J.
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Kemper National Tax-Free Income Series
Vice President, Kemper Municipal Income Trust
Vice President, Kemper State Tax-Free Income Series
Vice President, Kemper Strategic Municipal Income Trust
Vice President, Sterling Funds
MURRIHY, MAURA J.
Senior Vice President, Kemper Financial Services, Inc.
NATHANSON, IRA
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Corporation
RABIEGA, CRAIG F.
Senior Vice President, Kemper Financial Services, Inc.
First Vice President, Kemper Service Company
RACHWALSKI, JR. FRANK J.
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Cash Account Trust
Vice President, Cash Equivalent Fund
Vice President, Investors Cash Trust
Vice President, Kemper Investors Fund
Vice President, Kemper Money Market Fund
Vice President, Kemper Portfolios
C-13
<PAGE> 35
Vice President, Sterling Funds
Vice President, Tax-Exempt California Money Market Fund
Vice President, Tax-Exempt New York Money Market Fund
REGNER, THOMAS M.
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Horizon Fund
RESIS, JR., HARRY E.
Senior Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Diversified Income Fund
Vice President, Kemper High Income Trust
Vice President, Kemper High Yield Fund
Vice President, Kemper Investors Fund
Vice President, Kemper Multi-Market Income Trust
Vice President, Kemper Strategic Income Fund
SCHUMACHER, ROBERT T.
Senior Vice President, Kemper Financial Services, Inc.
SMITH, JR., EDWARD BYRON
Senior Vice President, Kemper Financial Services, Inc.
VINCENT, CHRISTOPHER T.
Senior Vice President, Kemper Financial Services, Inc.
First Vice President, Kemper Asset Management Company
BAZAN, KENNETH M.
First Vice President, Kemper Financial Services, Inc.
Director, K-P Greenway, Inc.
Director, K-P Plaza Dallas, Inc.
Director, Kemper/Prime Acquisition Fund, Inc.
BOEHM, JONATHAN J.
First Vice President, Kemper Financial Services, Inc.
Senior Vice President, Kemper Service Company
BURROW, DALE R.
First Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Strategic Municipal Income Trust
BYRNES, ELIZABETH A.
First Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Adjustable Rate U.S. Government Fund
Vice President, Kemper Intermediate Government Trust
C-14
<PAGE> 36
CHIEN, CHRISTINE
First Vice President, Kemper Financial Services, Inc.
DeMAIO, CHRIS C.
First Vice President, Kemper Financial Services, Inc.
Vice President and Chief Accounting Officer, Kemper Service
Company
DEXTER, STEPHEN P.
First Vice President, Kemper Financial Services, Inc.
DOYLE, DANIEL J.
First Vice President, Kemper Financial Services, Inc.
FENGER, JAMES E.
First Vice President, Kemper Financial Services, Inc.
HALE, DAVID D.
First Vice President, Kemper Financial Services, Inc.
HARRINGTON, MICHAEL E.
First Vice President, Kemper Financial Services, Inc.
HORTON, ROBERT J.
First Vice President, Kemper Financial Services, Inc.
JACOBS, PETER M.
First Vice President, Kemper Financial Services, Inc.
KEELEY, MICHELLE M.
First Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Intermediate Government Trust
Vice President, Kemper Portfolios
KIEL, CAROL L.
First Vice President, Kemper Financial Services, Inc.
LAUGHLIN, ANN M.
First Vice President, Kemper Financial Services, Inc.
LENTZ, MAUREEN P.
First Vice President, Kemper Financial Services, Inc.
McCRINDLE-PETRARCA, SUSAN
First Vice President, Kemper Financial Services, Inc.
MINER, EDWARD
First Vice President, Kemper Financial Services, Inc.
MURRAY, SCOTT S.
First Vice President, Kemper Financial Services, Inc.
C-15
<PAGE> 37
Vice President, Kemper Service Company
PAYNE, III, ROBERT D.
First Vice President, Kemper Financial Services, Inc.
PANOZZO, ROBERTA L.
First Vice President, Kemper Financial Services, Inc.
RADIS, STEVE A.
First Vice President, Kemper Financial Services, Inc.
RATEKIN, DIANE E.
First Vice President, Assistant General Counsel and Assistant
Secretary, Kemper Financial Services, Inc.
Assistant Secretary, Kemper Distributors, Inc.
SILVIA, JOHN E.
First Vice President, Kemper Financial Services, Inc.
STUEBE, JOHN W.
First Vice President, Kemper Financial Services, Inc.
Vice President, Cash Account Trust
Vice President, Cash Equivalent Fund
THOUIN-LEERKAMP, EDITH A.
First Vice President, Kemper Financial Services, Inc.
Director-European Equities, Kemper Investment Management Company Limited
TRUTTER, JONATHAN W.
First Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Diversified Income Fund
Vice President, Kemper Multi-Market Income Trust
Vice President, Kemper Strategic Income Fund
WETHERALD, ROBERT F.
First Vice President, Kemper Financial Services, Inc.
WILLSON, STEPHEN R.
First Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Strategic Municipal Income Trust
WITTNEBEL, MARK E.
First Vice President, Kemper Financial Services, Inc.
BARRY, JOANN M.
Vice President, Kemper Financial Services, Inc.
BODEM, RICHARD A.
Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Service Company
C-16
<PAGE> 38
CARNEY, ANNE T.
Vice President, Kemper Financial Services, Inc.
CARTER, PAUL J.
Vice President, Kemper Financial Services, Inc.
CHRISTIANSEN, HERBERT A.
Vice President, Kemper Financial Services, Inc.
First Vice President, Kemper Service Company
COHEN, JERRI I.
Vice President, Kemper Financial Services, Inc.
ESOLA, CHARLES J.
Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Service Company
FRIHART, THORA A.
Vice President, Kemper Financial Services, Inc.
GERACI, AUGUST L.
Vice President, Kemper Financial Services, Inc.
GERICKE, KATHLEEN E.
Vice President, Kemper Financial Services, Inc.
GOLAN, JAMES S.
Vice President, Kemper Financial Services, Inc.
HESS, THOMAS L.
Vice President, Kemper Financial Services, Inc.
HUOT, LISA L.
Vice President, Kemper Financial Services, Inc.
KARWOWSKI, KENNETH F.
Vice President, Kemper Financial Services, Inc.
KNAPP, WILLIAM M.
Vice President, Kemper Financial Services, Inc.
KOCH, DEBORAH L.
Vice President, Kemper Financial Services, Inc.
KOURY, KATHRYN E.
Vice President, Kemper Financial Services, Inc.
KRANZ, KATHY J.
Vice President, Kemper Financial Services, Inc.
KRUEGER, PAMELA D.
Vice President, Kemper Financial Services, Inc.
C-17
<PAGE> 39
KYCE, JOYCE
Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Service Company
LeFEBVRE, THOMAS J.
Vice President, Kemper Financial Services, Inc.
MANGIPUDI, V. RAO
Vice President, Kemper Financial Services, Inc.
McGOVERN, KAREN B.
Vice President, Kemper Financial Services, Inc.
MILLER, MAUREEN A.
Vice President, Kemper Financial Services, Inc.
MITCHELL, KATHERINE H.
Vice President, Kemper Financial Services, Inc.
MURPHY, THOMAS M.
Vice President, Kemper Financial Services, Inc.
NEVILLE, BRIAN P.
Vice President, Kemper Financial Services, Inc.
PANOZZO, ALBERT R.
Vice President, Kemper Financial Services, Inc.
PONTECORE, SUSAN E.
Vice President, Kemper Financial Services, Inc.
QUADRINI, LISA L.
Vice President, Kemper Financial Services, Inc.
ROKOSZ, PAUL A.
Vice President, Kemper Financial Services, Inc.
ROSE, KATIE M.
Vice President, Kemper Financial Services, Inc.
SHULTZ, KAREN D.
Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Service Company
SMITH, ROBERT G.
Vice President, Kemper Financial Services, Inc.
SOPHER, EDWARD O.
Vice President, Kemper Financial Services, Inc.
STROMM, LAWRENCE D.
Vice President, Kemper Financial Services, Inc.
C-18
<PAGE> 40
TEPPER, SHARYN A.
Vice President, Kemper Financial Services, Inc.
VANDEMERKT, RICHARD J.
Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Service Company
WATKINS, JAMES K.
Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Service Company
WERTH, ELIZABETH C.
Vice President, Kemper Financial Services, Inc.
Vice President, Kemper Distributors, Inc.
Assistant Secretary, Kemper Mutual Funds
Assistant Secretary, Kemper International Bond Fund
Assistant Secretary, Kemper Target Equity Fund
Assistant Secretary, Sterling Funds
Assistant Secretary, Kemper-Dreman Fund, Inc.
Assistant Secretary, Kemper Horizon Fund
WIZER, BARBARA K.
Vice President, Kemper Financial Services, Inc.
ZURAWSKI, CATHERINE N.
Vice President, Kemper Financial Services, Inc.
C-19
<PAGE> 41
ITEM 29. PRINCIPAL UNDERWRITER
(a) Kemper Distributors, Inc. acts as principal underwriter of the
Registrant's shares and acts as principal underwriter of the Kemper Mutual
Funds, Kemper Investors Fund, Kemper International Bond
Fund and Kemper-Dreman Fund, Inc.
(b) Information on the officers and directors of Kemper Distributors,
Inc., principal underwriter for the Registrant is set forth below. The
principal business address is 120 South LaSalle Street, Chicago, Illinois
60603.
<TABLE>
<CAPTION>
POSITIONS AND
POSITIONS AND OFFICES OFFICES WITH
NAME WITH UNDERWRITER REGISTRANT
---- --------------------- -------------
<S> <C> <C>
John E. Peters Principal Director, President Vice President
William E. Chapman, II Director, Executive Vice President None
James L. Greenawalt Director, Executive Vice President None
John E. Neal Director None
Stephen B. Timbers Director President, Trustee
Patrick H. Dudasik Financial Principal, Treasurer
and Chief Financial Officer None
Linda A. Bercher Senior Vice President None
Thomas V. Bruns Senior Vice President None
Terry Cunningham Senior Vice President None
Daniel T. O'Lear Senior Vice President None
John H. Robison, Jr. Senior Vice President None
Henry J. Schulthesz Senior Vice President None
David F. Dierenfeldt Vice President, Secretary None
Carlene D. Merold Vice President None
Elizabeth C. Werth Vice President Assistant Secretary
Kathleen A. Gallichio Assistant Secretary None
Diane E. Ratekin Assistant Secretary None
</TABLE>
(c) Not applicable.
C-20
<PAGE> 42
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
All such accounts, books and other documents are maintained at the offices
of the Registrant, the offices of Registrant's investment manager, Kemper
Financial Services, Inc. and Kemper Distributors, Inc., the Registrant's
principal underwriter, 120 South LaSalle Street, Chicago, Illinois 60603 or at
the offices of the custodian and transfer agent, Investors Fiduciary Trust
Company, 127 West 10th Street, Kansas City, Missouri 64141 or at the offices of
the shareholder services agent, Kemper Service Company, 811 Main Street, Kansas
City, Missouri 64105.
ITEM 31. MANAGEMENT SERVICES
Not applicable.
ITEM 32. UNDERTAKINGS
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
C-21
<PAGE> 43
S I G N A T U R E S
Pursuant to the requirements of the Securities Act of
1933 and the Investment Company Act of 1940, the Registrant
certifies that it meets all of the requirements for
effectiveness of this Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933 and has duly caused
this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of
Chicago and State of Illinois, on the 30th day of November,
1995.
KEMPER NATIONAL TAX-FREE INCOME SERIES
By /s/ Stephen B. Timbers
-----------------------------
Stephen B. Timbers, President
Pursuant to the requirements of the Securities Act of
1933, this Registration Statement has been signed below on
November 30, 1995 on behalf of the following persons in the
capacities indicated.
<TABLE>
<CAPTION>
Signature Title
--------- -----
<S> <C>
/s/ Stephen B. Timbers President
- -------------------------------------- (Principal
Stephen B. Timbers Executive Officer)
and Trustee
/s/David W. Belin* Trustee
- --------------------------------------
/s/Lewis A. Burnham* Trustee
- --------------------------------------
/s/Donald L. Dunaway* Trustee
- --------------------------------------
/s/Robert B. Hoffman* Trustee
- --------------------------------------
/s/Donald R. Jones* Trustee
- --------------------------------------
/s/David B. Mathis* Trustee
- --------------------------------------
/s/Shirley D. Peterson* Trustee
- --------------------------------------
/s/William P. Sommers* Trustee
- --------------------------------------
/s/ Jerome L. Duffy
- -------------------------------------- Treasurer
Jerome L. Duffy (Principal
Financial and
Accounting Officer)
</TABLE>
*Philip J. Collora signs this document pursuant to powers of
attorney filed with Post-Effective Amendment No. 40 to the Registration
Statement on Form N-1A of the Registrant on or about October 30, 1995.
/s/ Philip J. Collora
-----------------------------
Philip J. Collora
<PAGE> 44
INDEX TO EXHIBITS
<TABLE>
<S> <C> <C>
Exhibits
99.B1(a) Amended and Restated Agreement and Declaration of
Trust.*
99.B1(b) Written Instrument Amending the Agreement and
Declaration of Trust.*
99.B2. By-Laws.*
99.B3. Inapplicable.
99.B4(a) Text of Share Certificate.*
99.B4(b) Written Instrument Establishing and Designating
Separate Classes of Shares.*
99.B4(c) Written Instrument Establishing and Designating Kemper
Intermediate Municipal Bond Fund.*
99.B4(d) Written Instrument Changing the Name of a Series.*
99.B5(a) Investment Management Agreement (Kemper Municipal Bond
Fund).*
99.B5(b) Investment Management Agreement (Kemper Intermediate
Municipal Bond Fund).*
99.B6(a) Underwriting and Distribution Services Agreement.*
99.B6(b) Assignment and Assumption Agreement*
99.B6(c) Form of Selling Group Agreement.*
99.B7. Inapplicable.
99.B8. Custody Agreement.*
99.B9(a) Agency Agreement.*
99.B9(b) Supplement to Agency Agreement.*
99.B9(c) Administrative Services Agreement.*
99.B9(d) Amendment to Administrative Services Agreement.*
99.B9(e) Assignment and Assumption Agreement*
99.B10. Inapplicable.
99.B11(a) Consent of Independent Auditors.
99.B11(b) Report of Independent Auditor.*
99.B12. Inapplicable.
99.B13. Inapplicable.
99.B14. Inapplicable.
99.B15. See 6(a) above (Class B and Class C shares).
99.B16. Performance Calculations.*
99.B18. Multi-Distribution System Plan.*
99.B24. Powers of Attorney.*
27.All Municipal Financial Data Schedule*
27.A Municipal Financial Data Schedule*
27.B Municipal Financial Data Schedule*
27.C Municipal Financial Data Schedule*
27.All Inter. Muni Financial Data Schedule*
27.A Inter. Muni Financial Data Schedule*
27.B Inter. Muni Financial Data Schedule*
27.C Inter. Muni Financial Data Schedule*
99.485(b) Letter Representation of Counsel (Rule 485(b)).
</TABLE>
- ---------------
* Incorporated herein by reference to the Amendment to Registrant's
Registration Statement on Form N-1A identified below:
<TABLE>
<CAPTION>
POST-EFFECTIVE AMENDMENT
EXHIBIT NO. NO. DATE OF FILING
------------------------------------- ------------------------- -------------------------
<S> <C> <C>
16 26 1/20/89
1, 4, 5, 6, and 9 39 3/14/95
2, 8, 11(b), 18, 24 and 27 40 10/30/95
</TABLE>
<PAGE> 1
EXHIBIT-99.B11
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the captions "Financial
Highlights" and "Independent Auditors and Reports to Shareholders" and to the
use of our report on the financial statements of the Kemper National Tax-Free
Income Series -- Kemper Municipal Bond Fund and Kemper Intermediate Municipal
Bond Fund dated October 27, 1995 in the Registration Statement (Form N-1A) of
Kemper National Tax-Free Income Series and its incorporation by reference in
the related Prospectus and Statement of Additional Information of Kemper
Tax-Free Income Funds, filed with the Securities and Exchange Commission in this
Post-Effective Amendment No. 41 to the Registration Statement under the
Securities Act of 1933 (Registration No. 2-47008) and in this Amendment No. 41
to the Registration Statement under the Investment Company Act of 1940
(Registration No. 811-2353).
/s/ Ernst & Young LLP
Ernst & Young LLP
Chicago, Illinois
November 30, 1995
<PAGE> 1
EXHIBIT-99.485(b)
VEDDER, PRICE, KAUFMAN & KAMMHOLZ
November 30, 1995
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Kemper National Tax-Free Income Series
To The Commission:
We are counsel to the above-referenced investment company (the "Fund")
and as such have participated in the preparation and review of Post-Effective
Amendment No. 41 to the Fund's registration statement being filed pursuant to
Rule 485(b) under the Securities Act of 1933. In accordance with paragraph (b)
(4) of Rule 485, we hereby represent that such amendment does not contain
disclosures which would render it ineligible to become effective pursuant to
paragraph (b) thereof.
Very truly yours,
/s/ Vedder, Price, Kaufman & Kammholz
VEDDER, PRICE, KAUFMAN & KAMMHOLZ
COK/dd
